Worcester Polytechnic Institute Presentation to the Advisory Boards October 13, 2006

Worcester Polytechnic Institute


Presentation to the Advisory BoardsOctober 13, 2006


New Management Team


Vision 2015

Students and Student Life Undergraduate enrollment of 3,400

Graduate enrollment of 1,600

Increase percentage of undergraduates living on campus to 70%

New and renovated residence facilities

Newly-constructed sports and recreation center

Indoor garage with parking for 600 cars


Vision 2015

Academic Research funding of $40 million Stronger core competencies in engineering, science,

technology, and management, with special strengths and leadership in such areas as: Life sciences and bioengineering Entrepreneurship and business development Media, technology, and communication Environmental engineering and science

BA programs in selected fields within the humanities, arts, and social sciences

School of Management with a full-time, one-year, MBA Program and separate building


Vision 2015Academic (continued) WPI Gateway Park, a life-science and technology-based

development with: WPI life science (whole) departments Bioengineering Institute offices and programs Bioengineering-related corporate tenants WPI corporate & professional education division WPI graduate housing WPI-based programs in education, training, technology

commercialization, and business incubation

An industry leader in corporate and professional education

Renovation and expansion of several academic buildings

Top 50 national research university


Vision 2015

Financial Completion of major comprehensive campaign Endowment of $750 million Tuition discount factor of 35%


FY07 Expenditure Budget

• Salaries & benefits $61.7 M 58.8%

• Equipment, supplies, etc. 22.9 M 21.9%

• Debt service & depreciation 11.8 M 11.2%

• Utilities 5.6 M 5.3%

• Contingency 1.5 M 1.4%

• Gateway Park 1.4 M 1.4%

Total expense $104.9 M 100%


FY07 Revenue Budget• Net tuition & fees $72.9 M 69.6%

• Auxiliary operations 12.5 M 11.9%

• Endowment draw 9.8 M 9.3%

& investment income• Extended education 3.4 M 3.2%

• Indirect cost recovery 3.0 M 2.9%

• Unrestricted gifts 2.2 M 2.1%

• Other revenue 1.1 M 1.0%

Total revenue $104.9 M 100%


FY2006 SOURCES OF REVENUE

Other Operating Revenue

15%

Auxiliary Operations

12%

Net Tuition & Fees69%

Other Educational Programs

4%


Budgeted Expense by Area

Utilities5%

Advancement2%

Academic Affairs50%

Student Affairs9%

Debt Service & Depreciation

11%

Information Technology

9%

General Administration

6%

Plant Operations6%

Marketing & Communications

2%


Vision 2015Reputation Project-enriched, world-class education preparing students for

achievement, leadership, and fulfillment

Excellent research focused on important problems and innovative technologies and science

Driver of technology commercialization

Culture supportive of women faculty and students

Ethical, diverse, principled, stimulating community

Emphasis on civic responsibility and leadership


Key Performance Indicators


Student Demand

Number of applications reached an all-time high for Fall 2006.

4,924

3,316

3,708

3,5763,1913,136

0

1,000

2,000

3,000

4,000

5,000

6,000

Fall 2001 Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006


Student Quality

1262

1281

1294

1284

1290

1250

1260

1270

1280

1290

1300

Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006

Strong average combined SAT scores maintained during enrollment growth.


Student Quality

79%

68%

79%76%

72%

50%

60%

70%

80%

90%

100%

Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006

High class rank (% in top 5th of class) maintained during enrollment growth.


Tuition Discount

41.6%41.6%

47.7%

45.8%

46.5%

43.1%

39.1%39.1%40.3%39.9%

37.5%

36.1%

30%

32%

34%

36%

38%

40%

42%

44%

46%

48%

50%

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007

Freshmen All Students

Impact of new enrollment management strategies driving decline in tuition discounting while growing enrollment.


Fundraising Results (In Millions)

$15.9

$13.8

$12.1$12.0

$13.8

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

FY2002 FY2003 FY2004 FY2005 FY2006

Consistent fundraising history.


Research Award Volume(In Millions)

$16.7

$11.5

$13.6

$10.9

$7.8

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

FY2002 FY2003 FY2004 FY2005 FY2006

Level of research growing with investments in faculty and Gateway Park development.


Change in Net Assets from Operating Activities(In Thousands)

$68

$(3,437)$(3,809)

$(2,797)

$(976)

-$4,000

-$3,500

-$3,000

-$2,500

-$2,000

-$1,500

-$1,000

-$500

$0

$500

Operations have returned to positive results.

FY2002

FY2003

FY2005

FY2006

FY2004


Expendable Resources(In Millions)

$294

$276$281

$254

$263

$200

$210

$220

$230

$240

$250

$260

$270

$280

$290

$300

FY2002 FY2003 FY2004 FY2005 FY2006

Balance sheet continues to strengthen.


Endowment-Market Value History(In Millions)

$354

$327$315

$287

$295

$200

$250

$300

$350

$400

FY2002 FY2003 FY2004 FY2005 FY2006

Market value of endowment reached $354 million as of June 30, 2006.


EndowmentTen-Year Return History

FY06, 12.0%

FY02, -7.4%

FY99, 12.4%

FY97, 22.9%

FY05, 8.6%

FY03, 2.6%FY01,

-10.0%

FY98, 16.6%

FY00, 40.0%

FY04, 16.0%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Documents

Worcester Polytechnic Institute Presentation to the Advisory Boards October 13, 2006