Agenda

Agenda

IConfidential information of Ferrum College. FER1015I.PPT - CEK

K a n n o n

A Introduction

B National and Marketplace Trends

C Higher Education Trends

D Instructional Faculty Trends

E Colleges in Transition

F Ferrum College

G Ferrum Freshman Segmentation

H Competitive Set

I Operations

I2Confidential information of Ferrum College. FER105I.PPT - CEK

K a n n o n

Operations … Introduction

This chapter examines the operations of Ferrum College and the set of primary competitors.

Ferrum College total educational and general revenues Revenue trends, 1991 to 1996 Competitive Set comparisons

Ferrum College total educational and general expenses Expenses trends, 1991 to 1996 Competitive Set comparisons

Ferrum College staff ratios Competitive Set comparisons

Competitive Set average faculty salary


K a n n o n

Operations … Introduction

Ferrum College had educational and general revenues of approximately $14 million and expenses of about $15 million in 1996.

Ferrum College Educational and General Revenues vs. Expenses, 1996

Source: John Minter Associates; U.S. Department of Education Integrated Postsecondary Education Data System, 1997

$14.4$15.1

$0.0

$8.0

$16.0

E & G Revenues E & G Expenses

Expenses as Percent of Revenues: 104.9%

Millions


K a n n o n

Operations … Revenues

Ferrum College revenues derive from several different components, the highest percentage represented by tuition and fees at 48%.

$14.4

$0.0

$8.0

$16.0

Ferrum College

Ferrum College Educational and General Revenues, 1996

Total E & G Revenues* Components of E & G Revenues

Tuition and Fees48%

Federal, State, Local Revenues

22%

Private Gifts9%

Endowment Income9%

Grants and Contracts5%

Sales, Service, Other7%

Note*: 1996, in millions.Source: John Minter Associates; U.S. Department of Education Integrated Postsecondary Education Data System, 1997

Definitions of each component included on next page.


K a n n o n


Tuition and Fees includes all tuition and fees (including student activity fees) assessed against students for education purposes. Also included are tuition and fees that are remitted to the State as an offset to the State appropriation. Room, board and other auxiliary services are not included.

Federal, State and Local Revenues include all amounts received by the institution through acts of a legislative body, except grants and contracts.

Private Gifts include revenues that are directly related to instruction, research, public service or other institutional purposes that come from private donors for which no legal consideration is involved.

Endowment Income includes income from endowment and similar funds and income from funds held in trust by others under irrevocable trusts. Normally, this does not include capital gains or losses.

Grants and Contracts include revenues from governmental agencies that are for specific research projects or other types of training programs. Pell Grants are included in the Federal grant figures.

Educational Sales and Services includes revenues derived from the sales of goods or services that are incidental to the conduct of instruction, research or public service.

Other Sources include all revenues not covered in other categories (e.g., interest income, net gains from investments of unrestricted current funds, terminated life or annuity agreements).



K a n n o n


From 1991 to 1996, tuition as a percentage of revenues decreased, while endowment income increased for Ferrum College.


Ferrum College Components of E & G Revenues, 1991 to 1996

FER105I03.xls

Ferrum College Components of Revenues

1991 1992 1993 1994 1995 1996Percentage

Point Change, 1991-1996

Tuition and Fees 53% 50% 47% 46% 49% 48% -5Federal, State, Local 22% 25% 24% 23% 21% 22% –Private Gifts 8% 8% 11% 10% 9% 9% 1Endowment Income 4% 4% 5% 8% 8% 9% 5Grants and Contracts 5% 6% 6% 6% 6% 5% –Sales and Service 4% 4% 4% 4% 4% 4% –Other 4% 3% 3% 3% 3% 3% -1

Ferrum College Components of Revenues

1991 1992 1993 1994 1995 1996Percentage


Tuition and Fees 53% 50% 47% 46% 49% 48% -5Federal, State, Local 22% 25% 24% 23% 21% 22% –Private Gifts 8% 8% 11% 10% 9% 9% 1Endowment Income 4% 4% 5% 8% 8% 9% 5Grants and Contracts 5% 6% 6% 6% 6% 5% –Sales and Service 4% 4% 4% 4% 4% 4% –Other 4% 3% 3% 3% 3% 3% -1


K a n n o n


Across competitors, tuition and fees represent a higher share of revenues for Roanoke and Lynchburg than Ferrum College.

Ferrum College and Primary Competitors – Components of E & G Revenues, 1996

FER105I02.xls


Competitive SetTotal E&G Revenues*

Tuition & Fees

Federal, State, Local

Private Gifts

Endow-ment

Income

Grants & Contracts

Sales & Service

Other

Ferrum College $14.4 48% 22% 9% 9% 5% 4% 3%

Elon University $35.1 82% 8% 3% 2% 2% <1% 3%

Lynchburg College $23.7 75% 3% 10% 8% <1% <1% 4%

Averett College $14.5 79% 8% 6% 2% 3% 1% 1%

Emory And Henry College $13.2 45% 6% 22% 19% 4% <1% 4%

Roanoke College $25.2 74% 5% 7% 8% 2% <1% 4%

Bridgewater College $14.4 52% 14% 11% 13% 3% <1% 7%

University of Virginia $478.3 9% 25% 22% 6% 34% 1% 3%

Virginia Polytechnic $430.8 10% 43% 9% <1% 36% 2% <1%

Virginia Commonwealth $309.6 13% 29% 5% <1% 44% 3% 6%

James Madison University $76.3 39% 37% 2% <1% 12% 4% 6%

Longwood College $26.6 28% 46% 5% <1% 21% <1% <1%

Radford University $57.5 31% 51% <1% <1% 18% <1% <1%

Christopher Newport University $25.3 27% 47% 1% <1% 24% <1% 1%

Competitive SetTotal E&G Revenues*

Tuition & Fees

Federal, State, Local

Private Gifts

Endow-ment

Income

Grants & Contracts

Sales & Service

Other

Ferrum College $14.4 48% 22% 9% 9% 5% 4% 3%

Elon University $35.1 82% 8% 3% 2% 2% <1% 3%

Lynchburg College $23.7 75% 3% 10% 8% <1% <1% 4%

Averett College $14.5 79% 8% 6% 2% 3% 1% 1%

Emory And Henry College $13.2 45% 6% 22% 19% 4% <1% 4%

Roanoke College $25.2 74% 5% 7% 8% 2% <1% 4%

Bridgewater College $14.4 52% 14% 11% 13% 3% <1% 7%

University of Virginia $478.3 9% 25% 22% 6% 34% 1% 3%

Virginia Polytechnic $430.8 10% 43% 9% <1% 36% 2% <1%

Virginia Commonwealth $309.6 13% 29% 5% <1% 44% 3% 6%

James Madison University $76.3 39% 37% 2% <1% 12% 4% 6%

Longwood College $26.6 28% 46% 5% <1% 21% <1% <1%

Radford University $57.5 31% 51% <1% <1% 18% <1% <1%

Christopher Newport University $25.3 27% 47% 1% <1% 24% <1% 1%


K a n n o n


Endowment assets and building values also represent the financial health of the college.

Ferrum College E & G Revenues, Endowment Assets and Building Values, 1996

$14.4

$24.7

$42.5

$0.0

$24.0

$48.0

E & G Revenues EndowmentAssets

Building Values


Millions


K a n n o n


Each of the 4-year private colleges within the competitive set have higher endowment assets, while several of the public colleges have significantly lower endowment assets than Ferrum College.


Ferrum College and Primary Competitors – E & G Revenues, Endowment Assets and Building Values, 1996

FER105I01.xls

Total E & G Revenues

Endowment Assets

Building Values

Ferrum College $14.4 $24.7 $42.5Elon University $35.1 $21.1 $90.4Lynchburg College $23.7 $35.3 $45.3Averett College $14.5 $6.1 $20.9Emory And Henry College $13.2 $26.6 $37.0Roanoke College $25.2 $37.3 $79.0Bridgewater College $14.4 $30.2 $49.2University of Virginia $478.3 $597.9 $1,047.4Virginia Polytechnic $430.8 $162.8 $727.8Virginia Commonwealth $309.6 $17.1 $638.2James Madison University $76.3 $0.2 $307.2Longwood College $26.6 $5.0 $101.1Radford University $57.5 $5.3 $140.0Christopher Newport University $25.3 $2.2 $42.1

1996, in millions

Competitive Set Total E & G Revenues

Endowment Assets

Building Values

Ferrum College $14.4 $24.7 $42.5Elon University $35.1 $21.1 $90.4Lynchburg College $23.7 $35.3 $45.3Averett College $14.5 $6.1 $20.9Emory And Henry College $13.2 $26.6 $37.0Roanoke College $25.2 $37.3 $79.0Bridgewater College $14.4 $30.2 $49.2University of Virginia $478.3 $597.9 $1,047.4Virginia Polytechnic $430.8 $162.8 $727.8Virginia Commonwealth $309.6 $17.1 $638.2James Madison University $76.3 $0.2 $307.2Longwood College $26.6 $5.0 $101.1Radford University $57.5 $5.3 $140.0Christopher Newport University $25.3 $2.2 $42.1

1996, in millions

Competitive Set


K a n n o n

Operations … Expenses

Turning to expenses, instruction represented the highest percentage of total educational and general expenses, at 36% in 1996.

$15.1

$0.0

$8.0

$16.0

Ferrum College

Ferrum College Educational and General Expenses, 1996

Total E & G Expenses* Components of E & G Expenses

Instruction36%

Student Services

22%

Institutional Support

24%

Academic Support9%

Plant Operation9%

Note*; 1996, in millions.Source: John Minter Associates; U.S. Department of Education Integrated Postsecondary Education Data System, 1997

Definitions of each component included on next page.


K a n n o n


Instruction includes general academic instruction, occupational and vocational instruction, special session instruction, and remedial and tutorial instruction conducted, and expenditures for departmental research and public service that are not separately budgeted. Expenditures for both credit and noncredit activities are included. Expenditures for academic administration where the primary function is administration are excluded.

Institutional Support includes expenditures for the day-to-day operational support of the institution, excluding expenditures for physical plant operations. Included are expenditures for general administrative services, executive direction and planning, legal and fiscal operations and public relations/development.

Student Services include funds expended for admissions, registrar activities, student health services and activities whose primary purpose is to contribute to students' emotional and physical well-being and to their intellectual, cultural, and social development outside the context of the formal instructional program.

Academic Support includes expenditures for the support services that are an integral part of the institution's primary mission of instruction, research or public service. Included are expenditures for libraries, museums, galleries, audio/visual services, academic computing support, ancillary support, academic administration, personnel development and course and curriculum development.

Plant Operation and Maintenance includes expenditures for operations established to provide service and maintenance related to grounds and facilities. Also included are expenditures for utilities, fire protection, property insurance and similar items. Expenditures for plant fund accounts are not included.

Research includes all funds expended for activities specifically organized to produce research outcomes and commissioned by an agency either external to the institution or separately budgeted by an organizational unit within the institution.



K a n n o n


From 1991 to 1996, institutional support as a percentage of expenses decreased, while student services increased.


Ferrum College Components of E & G Expenses, 1991 to 1996

FER105I05.xls

Ferrum College Components of Expenses

1991 1992 1993 1994 1995 1996Percentage


Instruction 35% 38% 37% 35% 36% 36% 1Institutional Support 26% 22% 22% 22% 22% 24% -2Student Services 19% 20% 21% 24% 23% 22% 3Academic Support 10% 10% 10% 10% 10% 9% -1Plant Operations 10% 10% 10% 9% 9% 9% -1

Ferrum College Components of Expenses

1991 1992 1993 1994 1995 1996Percentage


Instruction 35% 38% 37% 35% 36% 36% 1Institutional Support 26% 22% 22% 22% 22% 24% -2Student Services 19% 20% 21% 24% 23% 22% 3Academic Support 10% 10% 10% 10% 10% 9% -1Plant Operations 10% 10% 10% 9% 9% 9% -1


K a n n o n


Institutional support and student services represent higher shares of expenses for Ferrum than other schools within the competitive set.


Ferrum College and Primary Competitors – Components of E & G Expenses, 1996

FER105I04.xls

Competitive SetTotal E&G Expenses*

InstructionInsti-

tutional Support

Student Services

Academic Support

Plant Operations

Research

Ferrum College $15.1 36% 24% 22% 9% 9% <1%

Elon University $35.3 41% 18% 20% 6% 15% <1%

Lynchburg College $24.0 50% 18% 16% 10% 6% <1%

Averett College $13.4 58% 20% 12% 5% 5% <1%

Emory And Henry College $12.9 36% 23% 11% 14% 14% 2%

Roanoke College $25.1 45% 18% 17% 10% 10% <1%

Bridgewater College $15.2 32% 18% 16% 19% 15% <1%

University of Virginia $461.7 38% 7% 4% 20% 6% 25%

Virginia Polytechnic $437.8 40% 9% 3% 13% 8% 27%

Virginia Commonwealth $322.5 48% 9% 2% 14% 7% 20%

James Madison University $77.1 56% 11% 5% 19% 8% 1%

Longwood College $25.6 49% 13% 6% 24% 8% <1%

Radford University $58.4 59% 11% 6% 14% 9% 1%

Christopher Newport University $25.3 46% 13% 8% 22% 6% 5%

Competitive SetTotal E&G Expenses*

InstructionInsti-

tutional Support

Student Services

Academic Support

Plant Operations

Research

Ferrum College $15.1 36% 24% 22% 9% 9% <1%

Elon University $35.3 41% 18% 20% 6% 15% <1%

Lynchburg College $24.0 50% 18% 16% 10% 6% <1%

Averett College $13.4 58% 20% 12% 5% 5% <1%

Emory And Henry College $12.9 36% 23% 11% 14% 14% 2%

Roanoke College $25.1 45% 18% 17% 10% 10% <1%

Bridgewater College $15.2 32% 18% 16% 19% 15% <1%

University of Virginia $461.7 38% 7% 4% 20% 6% 25%

Virginia Polytechnic $437.8 40% 9% 3% 13% 8% 27%

Virginia Commonwealth $322.5 48% 9% 2% 14% 7% 20%

James Madison University $77.1 56% 11% 5% 19% 8% 1%

Longwood College $25.6 49% 13% 6% 24% 8% <1%

Radford University $58.4 59% 11% 6% 14% 9% 1%

Christopher Newport University $25.3 46% 13% 8% 22% 6% 5%


K a n n o n

Operations … Staff Ratios

Faculty represented the largest share of Ferrum College’s staff, at 34% in 1996.

Faculty*34%

Professional Non-Faculty30%

Service, Maintenance

20%

Skilled Crafts4%

Ferrum College Staff Ratios, 1996

Clerical10%

Executive2%

Total Staff, 1996: 289

Note*: Includes both full- and part-time faculty.Source: John Minter Associates; U.S. Department of Education, 1997


K a n n o n


Faculty employees are persons whose assignments are customarily made for the purpose of conducting instruction, research, or public service and who hold academic-rank titles or equivalent.

Teaching/Research Assistants are students employed on a part-time basis for assisting in classroom or laboratory instruction or in the conduct of research.

Non-Faculty Professionals are persons employed for the primary purpose of performing academic support, student service, and institutional support activities, whose assignments would require either college graduation or experience of such kind and amount as to provide a comparable background. Includes Technical and Paraprofessional staff who are persons whose assignments require specialized knowledge or skills which may be acquired through experience or academic work, such as offered in many 2-year technical institutes, junior colleges, or through equivalent on-the-job training.

Service/Maintenance staff are persons whose assignments require limited degrees of previous acquired skills and knowledge and in which workers perform duties which result in or contribute to the comfort, convenience, and hygiene of personnel and the student body or which contribute to the upkeep and care of buildings, facilities or grounds of the institutional property.

Clerical and Secretarial staff are persons whose assignments typically are associated with clerical activities or are specifically of a secretarial nature.

Skilled Crafts staff are persons whose assignments typically require special manual skills and a thorough and comprehensive knowledge of the processes involved in the work acquired through on-the-job training and experience or through apprenticeship or other formal training programs.

Executive Administrative and Managerial employees are persons whose assignments require primary responsibility for management of the institution, or a customarily recognized department or subdivision thereof.

Source: John Minter Associates; U.S. Department of Education, 1997


K a n n o n


Across competitive private colleges, faculty represents a higher share at Roanoke and a lower share at Emory and Henry compared to Ferrum.

Ferrum College and Primary Competitors – Staff Ratios, 1996

FER105I06.xls

Note*: Includes both full- and part-time faculty.Source: John Minter Associates; U.S. Department of Education, 1997

Competitive SetTotal

Students, 1996

Total Staff, 1996

Faculty*Teaching

Assist.

Profess. Non-

FacultyService Clerical

Skilled Crafts

Executive

Ferrum College 1,022 289 34% – 30% 20% 10% 4% 2%

Elon University 3,139 531 42% – 21% 14% 15% 3% 5%

Lynchburg College 1,292 475 35% – 21% 20% 18% 2% 4%

Averett College 846 157 33% – 27% 4% 27% 1% 8%

Emory And Henry College 833 225 31% – 21% 13% 23% 3% 9%

Roanoke College 1,503 438 39% – 18% 21% 14% 1% 7%

Bridgewater College 948 236 35% – 23% 13% 15% 3% 11%

University of Virginia 11,861 11,756 17% 12% 34% 9% 17% 4% 7%

Virginia Polytechnic 18,912 7,661 19% 27% 30% 6% 11% 4% 3%

Virginia Commonwealth 9,734 9,811 16% 15% 41% 7% 14% 2% 5%

James Madison University 10,083 1,921 36% 12% 22% 12% 10% 4% 4%

Longwood College 2,868 493 32% – 34% 9% 14% 8% 3%

Radford University 7,156 1,400 36% 10% 19% 15% 10% 4% 6%

Christopher Newport University 2,834 358 47% – 29% 5% 12% 2% 5%

Competitive SetTotal

Students, 1996

Total Staff, 1996

Faculty*Teaching

Assist.

Profess. Non-

FacultyService Clerical

Skilled Crafts

Executive

Ferrum College 1,022 289 34% – 30% 20% 10% 4% 2%

Elon University 3,139 531 42% – 21% 14% 15% 3% 5%

Lynchburg College 1,292 475 35% – 21% 20% 18% 2% 4%

Averett College 846 157 33% – 27% 4% 27% 1% 8%

Emory And Henry College 833 225 31% – 21% 13% 23% 3% 9%

Roanoke College 1,503 438 39% – 18% 21% 14% 1% 7%

Bridgewater College 948 236 35% – 23% 13% 15% 3% 11%

University of Virginia 11,861 11,756 17% 12% 34% 9% 17% 4% 7%

Virginia Polytechnic 18,912 7,661 19% 27% 30% 6% 11% 4% 3%

Virginia Commonwealth 9,734 9,811 16% 15% 41% 7% 14% 2% 5%

James Madison University 10,083 1,921 36% 12% 22% 12% 10% 4% 4%

Longwood College 2,868 493 32% – 34% 9% 14% 8% 3%

Radford University 7,156 1,400 36% 10% 19% 15% 10% 4% 6%

Christopher Newport University 2,834 358 47% – 29% 5% 12% 2% 5%


K a n n o n

Operations … Faculty Salaries

Based on a recent study, on average, faculty at Ferrum College are paid less than at competitive institutions.

Ferrum College and Primary Competitors – Average Faculty Salaries, 2001

Note*: Adjusted to a 9-month work year. The figures cover full-time members of each institutions staff only. Source: American Association of University Professors, 2001

FER105I07.xls

Full Professor

Associate Professor

Assistant Professor

Instructor/ Lecturer

Ferrum College $50.5 $43.4 $37.6 NAElon University $62.8 $50.8 $44.3 $34.2Lynchburg College $56.4 $50.9 $43.5 NAAverett College $45.6 $39.7 $37.5 $35.3Emory and Henry College $61.2 $46.7 $36.7 NARoanoke College $59.7 $49.3 $38.7 NABridgewater College $52.7 $47.9 $40.1 $31.1University of Virginia $106.2 $71.4 $56.6 $45.9Virginia Polytechnic $88.9 $64.1 $54.2 $33.9Virginia Commonwealth $87.5 $68.4 $53.7 $35.5James Madison University $72.2 $59.7 $46.5 $39.4Longwood College $65.9 $53.5 $42.9 NARadford University $61.5 $49.9 $39.7 $34.2Christopher Newport University $74.9 $59.8 $48.2 $39.4

Average Salary, in Thousands*

Competitive Set Full Professor

Associate Professor

Assistant Professor

Instructor/ Lecturer

Ferrum College $50.5 $43.4 $37.6 NAElon University $62.8 $50.8 $44.3 $34.2Lynchburg College $56.4 $50.9 $43.5 NAAverett College $45.6 $39.7 $37.5 $35.3Emory and Henry College $61.2 $46.7 $36.7 NARoanoke College $59.7 $49.3 $38.7 NABridgewater College $52.7 $47.9 $40.1 $31.1University of Virginia $106.2 $71.4 $56.6 $45.9Virginia Polytechnic $88.9 $64.1 $54.2 $33.9Virginia Commonwealth $87.5 $68.4 $53.7 $35.5James Madison University $72.2 $59.7 $46.5 $39.4Longwood College $65.9 $53.5 $42.9 NARadford University $61.5 $49.9 $39.7 $34.2Christopher Newport University $74.9 $59.8 $48.2 $39.4

Average Salary, in Thousands*

Competitive Set

Agenda

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