RubinBrown Colleges & Universities Stat Book | NOT-FOR-PROFIT INSTITUTIONS

INSTITUTION SCORES PUBLIC

CFI Score Distribution by Percent of Institutions

Department of Education’s Responsibility Score Distribution by Percent of Institutions

50%

40%

7.5%

5.7%

22.6% 24.5% 26.4%

30%

18.9% 24.5%

13.2% 15.1% 22.6%

22.6% 24.5%

24.5% 15.1%

9.4% 3.8% 18.9%

20%

FY2016

3.8% 5.7% 3.8%

10% PERCENT OF INSTITUTIONS (%)

0%

86.8%

0 to 2

2 to 4

4 to 6

6 to 8

-4 to 0

8 to 10

FY16

FY17

FY18

5.7%

5.7%

CFI Score by Size of Institution

FY2017

Net Assets > $100m Net Assets < $100m

FY16

4.63

1.34

FY17

5.17

1.99

88.6%

FY18

5.31

1.87

0.0–0.9

1.5–3.0

1.0–1.4

institutions with net assets under $100 million was 1.9. This indicates greater financial health for the larger not- for-profit institutions compared to smaller institutions. Primary Reserve Ratio Given the volatility in enrollment and in contributions from year to year, institutions should be evaluating how well they can function on their existing expendable assets going forward. The primary reserve ratio seeks to provide an institution with a snapshot of how long it could operate without generating any additional revenue. This allows an institution to see how flexible it might be in expanding into new programs or may indicate how dependent the institution is on future sources of revenues to support or expand its mission.

The primary reserve ratio is calculated by dividing expendable net assets by total operating expenses. Expendable net assets exclude property, plant, and equipment net of the related long-term debt. Therefore, it is possible to have negative expendable net assets after excluding property, plant and equipment net of related debt. This can occur sometimes when an institution has permanent restrictions on its net position that exceed its liquid assets. Not-for-profit institutions experienced an average primary reserve ratio of 0.69 for FY16, 0.75 for FY17, and 0.78 for FY18. While the average was much higher for not-for-profit institutions than their public counterparts in FY16 through FY18, there were seven, eight, and six institutions in each year, respectively, whose scores were at or below 0.0.

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RubinBrown Colleges & Universities Stats 2019