Comprehensive Standard 3.10.1
The institution’s recent financial
history demonstrates financial stability. (Financial
stability)
aCompliance ___Partial Compliance ___Non-Compliance
Narrative:
Lawson State has maintained a healthy and stable financial history as indicated by the recent audited financial statements. (Audit 2006-2007) Lawson State provides evidence of financial stability. The Vice President for Administrative and Student Services has served as the Chief Financial Officer for over 15 years and has assisted the President with oversight and financial management of the college’s finances. The College’s financial history is detailed in the Statement of Financial Position of Unrestricted Net Assets. In addition, an analysis of financial performance based on the basic financial ratio and the Composite Financial Index (CFI) shows that Lawson State continues to perform at acceptable levels compared to Colleges within the Alabama College System.
Even with
budgetary constraints, the college has consistently operated within its
financial resources. A generally
recognized indicator of financial health is a college’s total net assets. On
September 30, 2004, the College’s net assets were $11,599,577. By September 30, 2008, the College’s total
net assets had increased 68% to $36,446,022.
From 2003-2004 to 2004-2005, the college’s substantial increase in
revenues and expenses is due largely to the merger of Lawson State Community
College and the former Bessemer State Technical College. The merger was effective July 1, 2005 and
required the use of resources to unify the campuses for operations and
communications as well as to upgrade technology. However, the college’s ability to invest and
acquire assets over the last five years has contributed to the increase in
total net assets.
Significant capital projects have taken place over the last several years. These projects include renovation to the science laboratories, technology upgrades of classrooms, communication and two new buildings. In 2004, The College constructed a $10 million technology instructional facility with an $8.1 million bond issue. In 2006, the college invested in a new resident hall facility, secured as a result of the good credit ratings of the college.
The student enrollment has shown consistent growth over the last five (5) years. In 2007-2008, the college increased fees to include a Special Building Fee to assist in capital project campaigns. No other tuition increases have been approved. The moderate growth in enrollment and the additional capital project fees have allowed the college to continue to operate with surplus revenues as well as meet its bond debt service.
Documentation:
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Documentation |
Location |
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2003-2004
Audited Financial Statements |
Audit
2003-2004 |
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Statement of Financial Position of Unrestricted Net Assets |
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Financial Ratio |
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Composite Financial Index |
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Enrollment Trends |