H-SC's Fiscal Health Very Sound
Published 4:01 pm Thursday, April 11, 2013
Editor, The Herald:
Recent letters to The Herald from Mr. Thomas Porterfield and Mr. Angus McClellan made implications about the fiscal status of Hampden-Sydney College. The fiscal health of the College is of interest not only to our constituents but also to Prince Edward County, where Hampden-Sydney is the fourth largest employer.
Hampden-Sydney has balanced its budget for the last 35 years and has an A rating from Standard & Poor's. Like all institutions of higher education, the College experienced declines in endowment and annual giving during the “Great Recession” (December 2007-June 2009). The endowment ($132.1M: 12/31/12) is recovering to its high in 2007. Hampden-Sydney's endowment per student puts the College in the top 25% of institutions of higher education. Contributions to the Hampden-Sydney Fund, that portion of annual giving which supports the operating budget, was $2.3M for the 2011-12 fiscal year. That amount approached the high in 2007 and exceeds the ten-year average. The level of giving to the Hampden-Sydney Fund is particularly impressive when one considers that the College has only 9,000 alumni. Between 2007 and 2011, the enrollment declined 5.7% but rebounded 2.2% to 1,080 in 2012. We anticipate that the enrollment will be back over 1100 at the beginning of the 2013-14 academic year. It should be noted that the Strategic Plan: H-SC 20/20 calls for an enrollment of 1,150 by the end of the decade. All of the above information is public knowledge and is available on the Hampden-Sydney Website.
The fiscal health of Hampden-Sydney College is very sound. The College has an aggressive and successful fundraising program that brings in significant funds, over and above the Hampden-Sydney Fund, for endowment and capital projects. It is with these funds that the bright future of the College is built.
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It is my intention only to address the fiscal issues raised in Mr. Porterfield's and Mr. McClellan's letters but for a clear picture of the College's immediate future, I recommend the Strategic Plan: H-SC 20/20 which is posted online at www.hsc.edu/Strategic-Plan.html.
W. Glenn Culley, Jr.
Vice President for Business Affairs & Finance