16 2008 Financial Reporting

FINANCIAL REPORTING

RHODE ISLAND SCHOOL OF DESIGN Degree Program Tuition and Fees Tuition & Fees

% Chg.

Room & Board

% Chg.

Total

1997/98*

$19,670

5.6%

$6,390

-3.4%

$26,060

1998/99

$20,545

4.4%

$6,490

1.6%

$27,035

1999/00

$21,405

4.2%

$6,490

0.0%

$27,895

2000/01

$22,305

4.2%

$6,660

2.6%

$28,965

2001/02

$23,397

4.9%

$6,830

2.6%

$30,227

2002/03

$24,765

5.8%

$7,038

3.0%

$31,803

2003/04

$26,199

5.8%

$7,370

4.7%

$33,569

2004/05

$27,975

6.8%

$7,728

4.9%

$35,703

2005/06

$29,775

6.4%

$8,355

8.1%

$38,130

2006/07

$31,430

5.6%

$9,360

12.0%

$40,790

2007/08

$33,118

5.4%

$9,860

5.3%

$42,978

*Fees include Student Activities fee and Technology/Internet Access fee (introduced in 1997/98).

Source: Finance

Fact Book 2008

page 120

RHODE ISLAND SCHOOL OF DESIGN Institutional Operating Summary Revenues

Expenses

Margin

%Margin

1997/98

$57,259,935

$57,094,157

$165,778

0.3%

1998/99

$62,038,068

$60,981,897

$1,056,171

1.7%

1999/00

$65,798,416

$65,495,220

$303,196

0.5%

2000/01

$69,329,281

$69,186,386

$142,895

0.2%

2001/02

$74,493,700

$73,922,384

$571,316

0.8%

2002/03

$81,311,011

$80,740,099

$570,912

0.7%

2003/04

$86,219,242

$86,155,083

$64,159

0.1%

2004/05

$89,282,526

$88,579,872

$702,654

0.8%

2005/06

$98,712,054

$98,673,183

$38,871

0.04%

2006/07

$106,707,680

$105,951,262

$756,418

0.7%

2007/08 (Budget)

$114,550,641

$114,524,388

$26,253

0.0%

$114,550,641

$114,524,388

$120,000,000 $81,311,011

$100,000,000 $80,000,000

$57,259,935

$80,740,099

$57,094,157

Revenues Expenses

$60,000,000 $40,000,000 $20,000,000

Source: Finance

Fact Book 2008

$0 1997/98

2002/03

2007/08 (Budget)

page 121

RHODE ISLAND SCHOOL OF DESIGN Institutional Operating Expenses 2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

Budget 2007/08

$73.9

$80.7

$86.2

$88.6

$98.7

$105.9

$114.5

$25.55

$28.25

$30.40

$31.89

$33.56

$33.65

$36.30

Academic Support

$4.47

$4.84

$5.31

$5.31

$5.92

$5.70

$5.90

Student Services

$2.64

$2.42

$2.91

$2.66

$2.96

$3.11

$3.50

Student Aid

$6.72

$7.26

$8.06

$8.86

$8.88

$9.12

$12.00

Plant Maintenance

$4.95

$5.65

$6.04

$6.20

$7.90

$8.70

$8.70

Inst.Support

$9.53

$10.49

$11.54

$11.52

$14.81

$14.49

$13.70

Museum

$3.30

$4.04

$3.66

$4.43

$3.95

$4.57

$5.40

Campus Services

$8.19

$8.88

$8.62

$8.86

$9.87

$11.36

$12.70

Debt Service

$2.96

$3.23

$3.56

$2.66

$3.95

$7.90

$8.90

Facilities Use Fee

$5.60

$5.65

$6.06

$6.20

$6.91

$7.27

$7.40

$73.91

$80.71

$86.16

$88.59

$98.71

$105.87

$114.50

Total (In Millions) Expenses Instruction

Total

*includes restricted and unrestricted student aid

Source: Finance

Fact Book 2008

page 122

RHODE ISLAND SCHOOL OF DESIGN Rhode Island School of Design 2006-2007 Actual Expenses Facilities Use Fee $7M

Instruction $34M

Debt Service $8M

Campus Services $11M

Museum $5M

Academic Support $6M

Inst. Support $14M

Student Services $3M Plant Maintenance $9M

Student Aid $9M

Notes: Figures are rounded to approximate to 100%.

Source: Finance

Fact Book 2008

page 123

RHODE ISLAND SCHOOL OF DESIGN Institutional Operating Revenue 2001/02 Total (In Millions)

2002/03

2003/04

2004/05

2005/06

2006/07

Budget 2007/08

$74.5

$81.3

$86.2

$89.3

$98.7

$106.7

$114.6

$49.40

$54.40

$59.50

$63.50

$66.90

$71.01

$73.80

Other Programs

$4.13

$4.80

$4.78

$4.57

$4.80

$5.45

$5.30

Gifts & Grants

$0.96

$0.80

$0.86

$0.94

$0.96

$1.34

$3.09

Unrestricted Endowment

$7.30

$8.10

$7.49

$7.22

$7.99

$8.85

$10.52

Other

$0.26

$0.10

$1.01

$0.37

$0.95

$0.75

$0.48

Museum*

$1.13

$1.10

$1.03

$1.14

$1.20

$1.26

$2.16

$11.30

$12.00

$11.57

$11.54

$15.91

$18.04

$19.20

$74.48

$81.30

$86.24

$89.28

$98.71

$106.70

$114.55

66.3%

66.9%

69.0%

71.1%

67.8%

66.6%

64.4%

Sources Of Revenue Degree Tuition

Campus Services Total

Degree Tuition as a percent of total revenue

*includes restricted and unrestricted gifts and grants.

Source: Finance

Fact Book 2008

page 124

RHODE ISLAND SCHOOL OF DESIGN Rhode Island School of Design 2006-2007 Actual Revenue Campus Services $18M

Museum* $1M

Degree Tuition $71M

Other $1M Unrestricted Endowment $9M Gifts & Grants $1M Other Programs $5M

Source: Finance

Fact Book 2008

page 125

RHODE ISLAND SCHOOL OF DESIGN Rhode Island School of Design 2006-2007 Museum Finances Sources of Revenue The museum receives revenue from various sources such as fundraising and memberships, visitor admissions, public workshops, facility rentals, museum shop sales, and fees from rights, reproductions and loans. The museum also receives gifts and grants from individuals, corporations, foundations and governmental agencies that are restricted for specific purposes, typically education programs, exhibitions or capital improvements. In addition, the museum has endowed funds that are also restricted as to purpose, such as family programs or student internships. Restricted endowment funds also provide the funds used to purchase new work for the museum's collections. Another source of revenue is derived from the museum share of RISD's unrestricted endowment. In 1998, a review of gifts that established RISD's unrestricted endowment fund determined that approximately 34.5% of the endowment was, at the time of the review, attributable to museum donors, and that the revenue associated with those gifts was fairly presented as being intended for general operating support of the museum. The proportion of endowment revenue attributable to museum gifts is adjusted annually as additional funds are added to RISD's Unrestricted Endowment Fund. The museum also receives an annual allocation of RISD's capital budget in order to help meet its ongoing facility maintenance needs. The final piece of revenue (college operating support) is provided by the college, and comes predominantly, but not entirely, from tuition. Uses of Funds The majority of the museum expenses, just like most RISD departments, are for salaries and benefits. Other expenses include supplies and business services, publications and educational materials, professional development, building maintenance, and all other expenses necessary to create and provide the Museum's educational programs (both on-site and off-site) and exhibitions, and to care for and preserve work in the collection. A variety of opportunities exist for students to participate in Museum projects and ongoing programs, through student employment, paid internships, or volunteer activities. The museum relies extensively on volunteer contributions from members and other supporters. The museum's tour program, for example, is widely used by schools in the three-state region, and relies on the services of volunteer docents to conduct those tours. Additions to the museum's collections are acquired through the use of donor gifts and endowment funds that are specifically restricted for that purpose, and by outright donation of works of art from collectors and benefactors. Sources of Revenue Endowed (Applied) 16% Gifts and Grants (Applied) 11% College Operating Support (budgeted) 8% Capital Budget 3%

Uses of Revenue

Membership and Annual Fund 11%

Acquisitions 12%

Earned Income 4%

Restricted Excpenses 10%

Museum Shop 2%

Capital Improvement 2% Museum Unrestricted Endowment 45%

Operating Expenses 76%

Note: All funds are included in chart Source: Finance, Museum

Fact Book 2008

Excess Revenue over Expenses $114,485

page 126

RHODE ISLAND SCHOOL OF DESIGN Rhode Island School of Design Capital Spending 2006-2007 Housing 7%

Institutional 10% Museum 4%

Facilities 38%

Academic Affairs 20%

OIT 11% Contingency 10% Source: Finance

Fact Book 2008

page 127

RHODE ISLAND SCHOOL OF DESIGN Rhode Island School of Design Market Value of Endowment Market Value of Endowment

Percent Increase

1999/00

$224,320,923

16.67%

2000/01

$213,145,432

-4.98%

2001/02

$205,717,730

-3.48%

2002/03

$206,222,080

0.25%

2003/04

$242,542,630

17.61%

2004/05

$262,104,319

8.07%

2005/06

$293,293,069

11.90%

2006/07

$367,269,757

25.22%

Percent Increase

Market Value of Endowment

$400,000,000

30.00%

$350,000,000

25.00%

$300,000,000

20.00%

$250,000,000

15.00%

$200,000,000

10.00%

$150,000,000

5.00%

$100,000,000

0.00%

$50,000,000

-5.00%

$0

-10.00%

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

Source: Finance

Fact Book 2008

page 128