The institution’s recent financial history demonstrates financial stability.
(Financial Stability)

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Narrative: As indicated in Compliance Certification Report Narrative 2.11, Orangeburg-Calhoun Technical College has maintained a healthy financial status despite multiple-year state budget cuts. From 2001-02 to 2002-03, state appropriations declined $475,335 (or 7%). They declined another $844,528 (or 14%) in fiscal year 2003-04 for a two-year total of $ 1,319,863 (or 20%). However, during this same time gross tuition revenue increased over $2,546,000 (or 61%). Tuition revenue has increased due to both enrollment and fee increases. Student enrollment has increased approximately 40% since June 30, 2001, due primarily to the availability of state lottery funds for tuition assistance, high local unemployment, an aggressive marketing plan and strong partnerships with the local high schools. Tuition rates have been increased to compensate for the loss of state appropriations. In the last three years, the College has ended the fiscal year with a surplus of revenue over expenses and has maintained cash reserves in excess of the 30-day operating requirement.

A generally recognized indicator of financial health is a college’s net assets. At June 30, 2003, the College’s net assets were $16,220,119. Of this amount, $4,044,701 was unrestricted and available to be used to meet the College’s on-going expenses. By June 30, 2004, the College’s net assets had increased 5.5% to $17,107,151. Even though significant expenditures were made for renovations, unrestricted net assets remained virtually unchanged at $4,037,973.

The College increased its net assets significantly in fiscal year 2002-03 by completing a new student and community services building. Most of the capital for this project came from state bonds. Other recent capital projects include major renovations to the library, the addition of faculty office space, an addition to the bookstore, reconfiguration of the Information Technology service area, renovations to various classrooms and a significant overhaul of the administration building. All of the construction and renovation projects were completed without incurring college debt. The College does not have any long-term debt.

The College’s archived financial statements reflect a strong financial history. Archived financial statements are available in the College Business Office.

Evidence of Support: