Education is the key to New Hampshire’s long-term welfare, economic prosperity, and quality of life. More thanever, the potential for each person to succeed—and to prosper—is determined by his or her ability to think, to reason, and toparticipate fully in all facets of life in a democratic society. Providing these critical educational programs and services throughteaching, research, and public service is at the heart of the mission of the <strong>University</strong> <strong>System</strong> of New Hampshire (<strong>USNH</strong>).The <strong>University</strong> <strong>System</strong> of New Hampshire is the state’s primary supplier of highly educated citizens and workers. The fourinstitutions of the <strong>University</strong> <strong>System</strong>—the <strong>University</strong> of New Hampshire, Plymouth State <strong>University</strong>, Keene State College, andGranite State College—annually enroll more than 31,000 students and graduate more than 6,000 students at the associate,bachelor, master, and doctoral levels. The institutions annually award more than half of the state’s bachelor’s degrees. In addition,approximately 77,000 alumni of <strong>University</strong> <strong>System</strong> institutions currently live in New Hampshire, contributing to their communitiesand the economy.FY11 HIGHLIGHTS(fiscal year ending June 30, <strong>2011</strong>)• The institutions of <strong>USNH</strong> worked hard in FY11 to generate additional revenuesand save money where they could so that the reduced state revenues in FY12could be better managed. The $27.1 million FY11 net income before otherchanges in net assets represents 3.4 percent of operating revenues, right in linewith the <strong>USNH</strong> goal to generate a 3 percent to 5 percent operating margin on anannual basis.• Granite State College inaugurated its fourth president, Dr. Todd J. Leach, atthe Shepard-McAuliffe Discovery Center in Concord. Under his leadership,the college has begun launching a variety of exciting initiatives aimed atadvancing the College’s mission and fueling record growth including a oneyear40 percent increase in applications.• <strong>USNH</strong>’s three residential institutions are among only 311 institutions nationwidethat earned the Community Engagement Classification by The CarnegieFoundation for the Advancement of Teaching.• The <strong>USNH</strong> Board of Trustees approved a $970 million “all funds” operating budgetfor FY12 that included significant cuts across the entire system to address a verysubstantial $48.4 million reduction in state support. More than 80 percent of thestate funding cut will be offset through expense reductions, which reduces thedirect impact on the students. Cost of attendance (i.e., the full tuition, fees, roomand board “sticker price” for a typical on-campus student) increases for in-statestudents were held to between 8.7 and 9.7 percent at the residential campuses.• From Moody’s June 8, <strong>2011</strong> rating report: “Moody’s affirmation of <strong>USNH</strong>’sAa3 rating and stable outlook heavily incorporates our assessment of <strong>USNH</strong>’sgovernance and management ability to take swift steps to grow privaterevenue streams and contain expenses to balance the FY 2012 budget inresponse to anticipated steep cuts in state funding… Historically, the boardand senior management team’s market-oriented focus has been criticalin light of the <strong>System</strong>’s high reliance on out-of-state students and modestreliance on state appropriations. The <strong>System</strong> benefits from a strong financialmanagement team as demonstrated by multi-year operating surpluses.”Granite StateCollegeLebanonGranite StateCollegeClaremontKeene StateCollegeGranite StateCollegeLittletonPlymouth State<strong>University</strong>ConcordGranite StateCollegeConcordGranite StateCollegeBerlinGranite StateCollegeConwayPlymouth State<strong>University</strong> Granite StateCollegeRochesterGraniteState CollegeManchester<strong>University</strong> ofNew HampshireManchesterGraniteState CollegePortsmouth<strong>University</strong> ofNew HampshireDurhamThe <strong>2011</strong> <strong>Annual</strong> <strong>Report</strong> is a publication of the <strong>University</strong> <strong>System</strong> of New Hampshire. Prior year <strong>University</strong> <strong>System</strong> <strong>Annual</strong> <strong>Report</strong>s are available online at finadmin.usnh.eduThe cover of this report features Keene State College Commencement <strong>2011</strong> photos. Photography Credits: UNH Photo <strong>Services</strong> , PSU Office of Public Relations, Mark Corliss, Chris Justice, Michelle Kammerman, Ann Card, Julio DelSesto, and Michael MoorePage 10 photo courtesy Business New Hampshire MagazineThe front section of this report is printed on 80# Chorus Art gloss text (30% post consumer waste and FSC certified) and the back section is printed on 70# Astrolite PC 100 text (100% post consumer waste).<strong>University</strong> <strong>System</strong> of New Hampshire, Dunlap Center, 25 Concord Road, Durham, NH 03824, 603-862-0918
<strong>USNH</strong> <strong>2011</strong> ANNUAL REPORTKeene State’s 170-acre campus, just a few minutes’walk from downtown Keene, has been called a“showplace of higher education.” Appian Way, themain pedestrian thoroughfare, runs through thecenter of campus.Table of ContentsLetter from the Chancellor. 2<strong>Report</strong> from the <strong>University</strong> <strong>System</strong> of New Hampshire. 3Management’s Responsibility for <strong>Financial</strong> <strong>Report</strong>ingand Internal Controls. 13<strong>Report</strong> of Independent Auditors. 14Management’s Discussion and Analysis. 15<strong>Financial</strong> Statements . 23Notes to the <strong>Financial</strong> Statements. 26<strong>University</strong> <strong>System</strong> of New HampshireBoard of Trustees and Administration .Inside Back Cover1
Change language