JWU sees 5.3% rise in scholarship funding, assets total $680M
A 5.3 PERCENT increase in scholarship funding and a 1.8 percent increase in operating expenses brought Johnson & Wales University's 2013 operating income (defined by the nonprofit as change in unrestricted net assets from operations) down 33.1 percent to $20.6 million. Above, a chart showing Johnson & Wales' scholarship funding and various operating expenses in 2012 and 2013.
PROVIDENCE – Johnson & Wales University saw total revenue and gains increase 0.6 percent in the fiscal year ended June 30 to $486.8 million, as the school’s scholarship funding and operating expenses increased, according to the 2012-2013 annual report released Thursday.
Net assets increased over the year, however, thanks to an improved position relative to defined benefit liability and settlement, and a roughly $30 million reversal of its unrestricted return on investments.
Thus, while the school saw a 33.1 percent decline in unrestricted net assets from operations to $20.6 million, its bottom line – increase in unrestricted net assets – improved by more than 600 percent to $35.1 million for the year, leaving Johnson & Wales with net assets at the end of the year of $680.3 million, a gain of 5.8 percent.
Johnson & Wales noted that scholarship funding rose $7 million, or 5.3 percent, to $138 million from $131 million in 2012. In addition, operating expenses saw a 1.8 percent increase, driven primarily by hikes in instructional expenses expenses and general services.
In terms of revenue, tuition and fees collected from Johnson & Wales students in 2013 increased 0.5 percent to $382.1 million from the previous year, while residence and dining revenue decreased 2 percent to $66 million.
Private gifts, grants and federal student aid also decreased in 2013, dropping 6.6 percent to $4.1 million. However, Johnson & Wales said philanthropy played a significant role in supporting student scholarships, faculty development and new athletic facilities. A faculty and staff fundraising campaign raised more than $150,000 from 20 percent of faculty at the school’s four campuses.
“The good news for Johnson & Wales is that we remain vigilant stewards of our precious resources, acutely mindful of keeping our brand of higher education affordable to students and relevant to today’s realities and tomorrow’s possibilities,” said John J. Bowen, chancellor of Johnson & Wales University, in the annual report.
Earlier this year, Standard & Poor’s gave Johnson & Wales an A- rating, and Moody’s assigned a rating of A2, which according to the annual report will allow the university to borrow at more favorable rates to expand academic programs and physical space at its campuses.