College Endowments Highest in Three Years
According to their joint annual study, the National Association of College and University Business Officers (“NACUBO”) and Commonfund are reporting that college endowments are at a three-year high. For the fiscal year ending June 2017, the annual net endowment returns at colleges and universities averaged 12.2 percent. The percentage is a significant jump from the fiscal year 2016 average of -1.9 percent, and it marks the highest average achieved since the fiscal year 2014 (15.5 percent). Despite the turnaround, recent data reveals that the 10-year average annual return decreased from 5 percent in 2016 to 4.6 percent in 2017. More. Read More.
Former College President Highlights Importance of Higher Education
As doubts grow among Americans over the value of a degree, former liberal arts college president Brian Mitchell believes higher education is essential in creating productive citizens. During a session at the National Association of College and University Business Officers’ annual meeting last week, Mitchell said the case should be made to promote college as a means to educate and prepare students for career success and post-secondary education. He noted that higher education should help students become articulate and collaborative, as well as communicate and apply quantitative methods and technology. In Mitchell’s opinion, these are the qualities employers want most.. Read More.
NACUBO Members Favor Nonprofit Reporting Requirement Update
As the Financial Accounting Standards Board (“FASB”) wraps up the first part of its nonprofit financial reporting project, members of the National Association of College and University Business Officers said the project’s second phase could help improve the way their operations are reported. During a meeting last month with the FASB, college finance officers voiced their intent to further efforts they began a decade ago to disclose more details regarding endowments, capital spending, operating budgets and fundraising. The FASB has no plans to begin the project’s second phase until an extensive review of its standard-setting agenda has been completed. The. Read More.
FASB and NACUBO Reach Agreement on Planned Investment Expense Reporting Changes
Last Tuesday, the Financial Accounting Standards Board (“FASB”) and representatives from the National Association of College and University Business Officers reached a general agreement regarding the outlines of the updated reporting requirements for investment expenses. The agreement is a key provision in the FASB’s planned guidance for nonprofits, but Board staffers could take several weeks to prepare the standard. Finance officers will not have a chance to see the final changes until the proposal is made public. Finance officers are concerned that the FASB will draft a narrow definition for direct expenses deducted from investment returns and limit how their. Read More.