Report from the Business Manager
The fiscal year ending in June of 2004 was one of the most exciting and successful in recent years. The school ended the year with a modest $269 dollar surplus. All departments and employees should be congratulated for their diligence and participation in producing yet another balanced budget. The fiscal year 2004 marked the eighth consecutive year of balanced budgets.
The Investment and Finance Committees of the Board of Trustees worked tirelessly to assist the school in shaping fiscal policy and crafting financial options that insured continued positive growth and development for The Putney School. The hard-working individuals on these committees are to be congratulated for their efforts on behalf of the school.
During the course of the summer and fall, the school will be undertaking an effort to quantify the condition of the physical plant. At the heart of this effort will be the development of a "Putney sustainable building code" that will guide not only our plant survey but the technologies that are used to address maintenance issues. Management believes that the school is mission-bound to continue searching for ways to lessen the school's impact on the environment.
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 Randall Smith |
The largest construction project in the school's history, The Michel S. Currier Center, was completed in April of 2004. The 24,000 square foot center quickly integrated itself into the fabric of school life. In addition, the school began the process of turning the "old" music wing into the "new" English Department wing. The new wing will include four spacious and state-of-the art classrooms, each with a spectacular view of Mt. Monadnock, as well as a small conference room, restroom and office for the English department.
Endowment continued to increase in value despite the economy's less than stellar performance. The school's investment strategy was one that partnered capital preservation with income production. Additionally, more than five million dollars was pledged to the school for endowment growth and debt service. The scale of these pledges is an indicator of the real and, more importantly, perceived economic strength of the school.
Despite our successes, The Putney School remains a tuition-driven institution. Roughly 80 percent of our revenue is a direct result of student tuition. While this is a higher percentage than we would like, it is a common number among small (200-300) boarding schools. During the year, management and the board continued to examine ways to decrease our dependence on tuition by developing alternative streams of revenue. This is an ongoing process, combined with an evolving and dynamic budgetary architecture that provides the school with a flexible yet targeted budgeting protocol.
Many thanks to all who helped make FY04 one of the most successful in the school's long history. Looking back over 2004, the school continued to met short and mid terms goals, all the while positioning itself to meet the demands of the future.
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