1d ‘aT NILSEN ASTOISCERTIFICATE AS TO CORPORATION REPRESENTATIVES 1, Dr. Jane O'Meara Sanders, President of Burlington College (the “Corporation”, DO HEREBY CERTIFY that the following authorized representative of the Corporation and { have bbeen designated to act on behalf of the Corporation as a Corporation Representative (as defined in the Loan Agreement, dated as of December 1, 2010, by and between Vermont Educational and Health Buildings Financing Agency and the Corporation) and that the signatures set forth ‘opposite the respective titles of such persons are their genuine signatures. Name Title ‘Signature Meer OHeaseQabors Presiden Crrisene Pluakot eter DOA IN WITNESS WHEREOF, I have hereunto set my hand this 31st day of December, 2010.‘Barfinton Caliere ‘losing Certifeate sareuant othe Bond Purchase Agreement 1, Jeno O’Mesrs Sanders, DO HEREBY CERTIFY thet Iam to President of Burlington College (tse ‘“Conpontion”, and that es such Iam muthrised to execu tha Crtfcats on behalf oft Compare. Afi terms ‘od hoes, ead not otherwise defined harin, hav the came meanings assigned to them inthe Bond Purchase Agreement. {THEREBY FURTHER REPRESENT thar ‘Tho Corporation () has boen daly organized end i validly isting a private nonprofit corpontion In good sting under the lowe of tho Sat with fil legal power and shorty to own its property, conduct its business end execato, deliver an perfomn fi obligations unter the Loan ‘Agroemant, the Note the Mongage and the Bond Purchase Agreement (collectively, the “Corpomtion Document”) and (i) ta taken ell ections and obtioed ll epproval required ta ‘comartion therewith 1b The Cosportion is exempt fom federal income taxation under Section $01 (8) of th Cod, on ‘cnganization deseribed in Section $01(03 of he Code, and ther ls no threatened change in sch ‘ax exempt status of te Corpora, (© There are no lisnsapsint or overs tats, eseosmsats, tes ox oter government charges ‘payable by ths Corporation to tha United Stats, tho Stato of Vermont er any otharetn cf smunlotpalty inthe Unie Stats, 4. The execution delivery and performance of ll agreement, certificates and documenta required to be exceutive, delivered end performed by the Corporation in oder to eamy out, give eft to and consummate the transactions contemplated by the Corporation Documents have bara duly suthosized by all nsceosary ection of ho Corporation; the Corporation Documents te fill force ‘tnd effet on and os ofthe dat haoof an no extort forth execution, dliveyr prformanse ‘of the Corporation Documents hrs boen repealed, revoked or rescinded, ‘& Tha exsaton ed detivery of the Capontio Documents on bel ofthe Corporton andthe perfomance of the oblgntions conned in the Corporat Dune, the coasumnaton of ‘emnsovtons therein atop (utong the eequltons,conetoson tad equpping of io Proje) and compllance wit tho provisos ofeach do nt end wil ot) confetwitho ota th Cerporation's Antes of Associaton ortho Bye oft Board of Trae, conf wth semi in any breach of oreo «det meron indent, mrtgags, dod of rat ak Joan er credit grement or eny oer erent or Insrumcat which the Capoatan sa pty by which to ny oft ropary may be bound or etd x) cont wt or ila ary xing law, replat, gent, order, wt, fein rare of ey greet, semen insanity or court, dma o Fein, hvg juried overt Corporation or ny oft propery; proved, ower, ttn certian vn epardag a sppicbiliyofeny2oaag, sobdvison or ter land we ln, regulation or oda t the xenon ane dstvr ofthe Martgge nore ascessy of caning ony pet repro under eny euch law, regulon or ordinancei “The Corporation has daly authorized tha inking of nd has talon eny end al ection necessary > ‘erry cated give offs to the transactions contemplate to be performed oa ls pty the (Corpoction Documents, ‘No Bvent of Defoult under the Lons Agreemesit has odcured end no event which wth notice or lupeeof te or bath would becoms such an Bvet of Dofhat has oomued end is continuing. “The representations und warranties ofthe Copomtion cotsinod inthe Locn Agreement end in ‘the Bond Purchase Agroement ere tus and comer on end es of the dat hereof wih to eae force ‘nd ene as though each representations and warraatcs were made on and of th date hereof, “The Corporation Docemeats were each duly exacted and defivered on bealf of the Corportion ‘by daly authorlaedofBicers of te Corportion and th lgnanre ofeach such officer thereon in ‘is gonane signature. ‘Theron no ation, Ihigaton ut, proceeding, inquiry or investigating, et nw or inequity, or ‘before or by eny cout, pubs boerd ar body, pending or, to th Corporation's noviedgs, ‘Greetoned against, or efeting, th Corpontion, wherein an eafavorble decision, te Cerportion ‘Documents or the trnaactions contemplated tein orn the Bond or which would steially ‘sdvernely affect th busines, ropet or nancial condlion ofthe Corpamton. ‘tne the exeeaton of the Bond Purchase Agron! thre his boen no mitral averse change Inthe busines, property oF financial candlion of ho Corporation, er the Corporation ha no, ‘ther than fa the onlay come of sina, entered into any transaction or ixcurd any Hblty mately adveze tothe Corporation, “There ro no Los or enoumbrnon of record (thes than he Morty end Pec neuibrances (os dotinod in the Loan Agee) on the Mortgaged Proper. ‘The Corporation hao not, sae Fuse 30,2010, lured any eaters! Kbit ode than to ordinary eourte of bunlnze o a ave ben dcloed tothe Purehomr, and th ltt avalebl udlted and wr-audied finaoial ttemoet of the Corporation present ly the Srenca position ‘ofthe Cerportion a ft dat therea end tho result of is operations forthe period theren. e Wrrness my tnt is 2S ayot Dresecadlees 010Bond Documentation 46. Evidence of Receipt of Fundraising Grants of at least $2,270,000.[Donations TPs 730 nis (Cong | Arman Fan Fro Fyao1s | F¥a0rd | Fraois | Fvo0is —| —~Fv20i6 — [roa x [s1000900|$— 150900 $ —1s0p00 [$150,000 [$150,000 |S 150000 | $ 150000] § — 100,000. x | _120000 [$10,000 $3000 [$20,000 $ 20,000] $ 20,00 $ — 20,0001 § 20,000 [TP (verbal) ‘S000 000 | $7,000,000. lke = [s_—_ 20000 $20,000 faa (pl) ‘$___10000|$ 10,000 eo = 1s 500 ‘500. [BC [$25,000 [s——“s,000 | 5000 |S 5,000 3000, S00, ‘S$ ___2000|$ 2,000 %_[$___ 100,000 | $700,000 x {sx S___ 100005, $s IDF (eins) s. s___ 50000 [Friends a 5 __1297500 | $335.00 | $175,000 | 3 175000 | § 175,000 $ 170,000 | $ — 120,000 [Etpiasy x18 amos | a = ) S00 | $ S000, 3000) eo 5 $——tia0/s — Sons 20 [ar $s $1500 | $ ys00 | $ 1500) [Ma s soo ts Lo |S 1040 [$1,040 \sF s S__— 1000 Ts "L000 |S 71000 "1000, Saf s cE) 70540 | § 10540a Ee i om 5 ¢ loss 5 = — ¢ fe 5 INF [s fry . fn i RM x 1s 5000s le (plas) o_o erro) 3000 Boipia 3000 [Trustees 278,500 | rat xfs Tt eB 5 Bs Sain froats | sase7o0 | s 238010 cowimer || a6mon|s 12zso0 oma :‘spadeaad Fatt 20) oneaore TR RO]O10Z ‘1 4aquiaidag s33eq adal[op uojsulNg ueoyddy syuvayddy [euonvonpy Wao y UoeIddy pue suoyosn.ysuy uoHeoddy EEE EEE Ee Ce ee ERY6. Financial Information cE fi F Has anything occurred since the date of your last annual financial report or financial statements that would have a significantly negative effect on your revenues, expenditures or ability to pay future debt service? If YES, please describe the occurrence and the effect caused. Please provide a brief narrative of financial performance for most recent fiscal year as well as the past five (5) fiscal years, Please highlight any events that notably affected financial results for the past five (5) years. NO ‘The College has completed the annual financial audit for Fiscal Year 2010, ‘The independent audit firm found no deficiencies or material weaknesses ‘and noted that recommended actions from the prior year’s audit were found to be largely implemented. ‘Through expansion and strengthening of academic programs and greatly ‘enhanced outreach and recruiting efforts, the College’s enrollment increased 18% for the current semester, and 14% the previous semester. ‘These increases reflect growth not only in our “traditional” student base, ‘but rapid enrollment growth in new programs (certificates and degrees in Craftsmanship and Design) and emerging demographics (Veterans). This growth in enrollment, combined with continued careful attention to financial management and long term planning efforts, led to a Department of Education Financial Responsibility Ratio of 3.0 for the most recently completed year. This is the college’s highest ratio calculated by DOE. ‘The College’s change in net assets of $317,181 for the 2010 fiscal year, and the end-of-year cash balance of $710,000 in unrestricted cash, confirm 1 planned set-aside of funds for campus improvements and acquisition of new property. Over $500,000 of that cash is being held in a building, account to put towards to purchase of the new campus property. As the College prepares to take on a higher level of debt, itis important to note the debt service ratio of 3.59 for the year ending June 30, 2010. This ratio is well above the 1.25 generally required by lending institutions, and represents again diligent financial oversight and the Board and ‘Administration’s commitment to careful long term planning, ‘The College isin the silent phase of a planned $6-million Capital Campaign. The funds will be used towards the purchase and renovation of our new campus. As of September 30, 2010, one gift of $1-million has 13 [PagePlease highlight any upcoming events that are expected to notably affect future financial results. Please see the attached excel spreadsheet for the remainder of the requisite financial informatio verffisca bbeen committed and another $1-million has been verbally pledged. In addition, significant pledges from two other individuals plus contributions from other friends, faculty, staff and trustees come to a total of more than. $350,000. Energy improvement grants in the amount of $375,000 have bbeen awarded, and the College projects additional grants of more than S1- million during the next few yea ‘The Roman Catholic Diocese has agreed to provide a second mortgage on the property which will allow the College to pay $3,500,000 of the purchase price over a four year period. The loan will be interest-free for the first two years and have a 3% interest rate on the outstanding balance in the third and fourth year. ‘The College has a signed Purchase & Sale Agreement for our current academic/administrative building for $1,200,000. We plan to close on that property at the same time as we close on our new campus. These receipts will allow us to enter into the new bonding with all previous debt repaid. {SEE ATTACHED EXCEL SPREAD SHEET] 14|Page7. Comments and Signature Is there anything else you want [SEE ATTACHED WORD DOCUMENT] VEHBFA to know? We have included a project overview, a history and description of the buildings and grounds, pictures and our principles of site development, | certify, to the best of my knowledge, that the facts and representations in this application and all attachments are true and accurate in all respects and no material facts have been omitted. : Signature : Date : Name (print) Title 15| PageBURLINGTON COLLEGE NEW CAMPUS (CURRENT CAMPUS PROPERTY Burlington College currently has all its administrative and academic functions in one building located at 95 North Avenue. We own five other contiguous properties, comprised of three houses, a 5- apartment unit and a t-acre parking lot, all with lake views. The College also owns an apartment house with 3 units at 115 North Avenue. We have accepted an Offer on the main building and a portion of the parking lot and are working ‘out the specific language of the Purchase & Sale Agreement. We have agreed to the terms and the timing and expect to close just prior to closing on our new campus. This one sale will allow us to dispose of all current debt and will own the rest of the properties debt-free. (CaPITAL CAMPAIGN We have just begun our capital campaign, and remain in the “silent phase.” At this time, we have a firm commitment of $1 million from one donor and a verbal commitment for an additional $1 million from another donor. Burlington College faculty and staff have committed over $125,000 in pledges, and members of the Board of Trustees have committed an additional $133,000, with additional trustee gifts pending. State and federal grants of approximately $375,000 have been, awarded. ‘Our cutrent projections are based on a five year capital campaign totaling $6 million. With more than one third of this total currently pledged, the total goal may be increased prior to announcing the public phase of the campaign. ENROLLMENT ‘The purchase of these facilities will alow Burlington College to realize its plan to grow campus enrollment from 200 students to approximately 400 students over the next four years. Campus applications rose 15% this fall and enrollment was up 18% from the priot yeat. The projections for enrollment are very conservative. 5-year back — forward....New programs caneus Incneast FROM PRocRM 2004 2005--2006- 2007-2008 2009... 2010- FY201070, Om. 05 06 o7 0 wot F201 Enrotied FTEs i ie il a ie 18% Applications 9 48 68 zee 128 19 205 15% (CURRENT & PROJECTED ON-CAMPUS ENROLLMENT FY201 -FY2012.-FY2013.—FY2014.—-FY2015 Full-Time Equivalents (FTEs) ter 195 235 280 335, # Students 192 232 280 333 400BURLINGTON COLLEGE NEW CAMPUS Fy2010Auprr ‘An independent audit of Fiscal Year 2010 (July 1, 2009 through June 30, 2010) found no significant deficiencies or material weaknesses and reflected a positive increase in available funds. The College had budgeted an increase in net assets of $200,000 for 2010 in preparation for building a new building on campus. The FY2010 audit shows an even larger increase of $317,182 in total assets, with $235,347 in unrestricted funds. ‘The College’s balance sheet shows that unrestricted cash and investments rose $360,871 in FY2010, from $349,553 the prior year to $710,424. The increase in cash was due to prudent cash management and a continued process of setting aside funds for furure building (which in this case, is turning to buying). Long-term debt has been purposefully increased. Before the last tax-exempt financing, long-term debt increased by $390,813 between FY2007 and FY2009 to $1,080,670, due to the purchase of two buildings and the addition of two mortgages. In FY2010, with the tax-exempt bond financing, it went up again to reach $1,718,402. This current proposal will raise it once again. ‘The College’s increases in long-term debt have been undertaken only after careful evaluation of the benefits afforded. The addition of new facilities has allowed the College to house more students, which has led to an increased ability to recruit and retain students. The debt service calculation on existing debt, as defined by the bonding covenant, is 3.59:1, well above the minimum 1.25:1 required by the financing. The calculations the College has provided on projected new debt indicate an ability to maintain a comfortable debt service ratio between 1,65:1 and 5.97:1 over the next five years, based on borrowing $6.5 million. Projections further indicate an ability to support debt well above the $6.5 million level while still remaining within the bonding covenant debt ratio stipulations. ‘Again, there is litte doubt that by taking on this new level of debt to purchase a new campus, the College will be gaining the facilites and grounds to grow the student body and serve the local ‘community in extraordinary new ways. TeRys “The College is meeting with banks to seck financing through a fixed rate loan based on the ‘Tax Exempt Equivalent Prime Rate. The terms, rates and conditions of the loan that are in the assumptions of the College’s financials are 4% over thirty (30) years, .75% higher than the Wall Street Journal Prime Rate. The tax-exempt variable rate loan is planned to be taken out with 2 30- year amortization, on which the interest rate will be fixed at 4% for the first seven years and available to renegotiate, using the same formula, for an additional five years. ‘REQUEST Burlington College requests approval of financing in an amount of $6,500,000 at a minimum and $8,000,000 at a maximum, based on the following considerations: (1) the College has demonstrated a strong financial position that steadily trended upward over the last several years; 2) the College has managed our current debt and increased our assets even more favorably than projected at the time of the prior bond financing; and (3) the new properties acquired through the proposed financing will allow the College to grow our programs and enrollment significantly and quickly.‘Requisite Financial Information (Education) Market Data Ey10 Fxoo vos. Exar E06 Total FTEs 160 49 146 133 142 ‘Target\Goal FTE Level 155 0 0 0 0 Applications 207 188 137 104 8 ‘Admissions 115 155 70 65 68 Selectivity % 84.5% 82.4% S11% 62.5% 872% Matriculation % 40.0% 419% 68.6% 85% T% Tuition $ S 21340 $ 20,424 $ 19,640 $ 18,350 $15,600 Room & Board $ (Room only, no meals) S 6350 $ 6095 $5,750 $ 5,500 $5,250 a. Please provide the tution and board levels for your top five peer schools / competitors. ‘Tuition Board § Marlboro $33,900 $ 5,190. room only Green Mountain College $26,920 $ 12,714 includes meals Champlain College $ 27,130 $ 7,330 roomonly Emerson College $30,752 $ 12881 includes meals Savannah College of Art and Design $ 30,510 $ 7,785 roomonly b, What are the College/University/School projected tition growth rates for the next five (5) years? Answer: Burlington College is projecting a 5% annual increase intuition forthe nex ve years. «Please provide a breakdow of your "Net Asscts Released From Restriction” as shown on your statement of operations into the categories shown below. Actual Actual = Actual = Actual’ = Actual . ey Evy = Fog EVO) EYOS ji, lavesnent income and gains s 8 = 8 7 ji Gifts used for construction or acquisition of fixed assets 7 : : : : Ii, Gis available fo operations or other 2502550576 __105,180__—+36,276__—_—42,167 ‘Total Net Assets Relensed Prom Restriction 23 reported in Ault. S255 $ S057 _S WSISD $ 36276 $42,167 4, Pleae ist any bond proceeds held by the trustee forthe past five (5) fiscal years (i available). Please indicate where these funds can bbe found on the Balance Sheet. “Answer: In December 2009, the College refinanced all ofits existing properties through tax-exempt bond financing. ‘The total amount of financing was 81,750,000, of which approximately $1,067,000 was used to refinance mortgages. ‘The remaining balance was used fr property and energy improvement projects. At the end of FY2010, $480,876 ofthe funds were sill held by the trustee, Union Bank. These funds are part of the Restricted Cash balance on the 6/30/2010 Balance Sheet. Actual Actual == Actual’ «= Actual Actual FyioFvo9 Vos VOT FV Bond Proceeds held by Bond Trustee (DSRF, Project Fund, Debt Service Fund) S_480576 5 38 3s 3s - «. What is your endowment spending rte? The College doesnot have a curren spending policy. The College's ltenions are fo hold the funds ina money market account and leit grow, at which ime scholarships will be awarded This is consistent withthe College's objective o mainain the purchasing power ofthe endowment assets a well a0 ‘provide addtional growth through investments and new gifs. The College intends to estabich a moe formal investment! ‘ndowmen policy and spending policy n conjunction wit he atcpated Capital Campaign of 2010-2015. At that ime, decision wl Be made regarding more aggressive ivestnent accounts. Actual Actual’ = Actual «= Actual = Actual Fvi0 Fy0, Fa? FYO6 Endowment Spending Rate 0.0% 0.0% 0.0% 0.0% 0.0% ppeatonIaricton ond Aplicaton Form ie veHfBEARequisite Financial Information (Education) £, What was your endowment return for the past five (5) fiscal years? ‘Actual Actual’ = Actual’ «= Actual = Actual Fy10 FY08 YO? Endowment Return 0.0% 17% 0.0% 00% 00% Does the College/University/School have plans for a capital campaign? Ifo, please detail the current status ofthe campaign including i) $ goals; andi) what the money is intended to be used for (capital projects, endowment, et.) Answer: The College isin the silent phase of a planned 6-million 5 year Capital Campaign. The funds raised are intended to.be used towards the purchase and renovation of a historic $10-million property which will serve as the new campus forthe College. 1t is estimated that 25% of the funds raised may be added o endowment funds. As of September 2010, a $1-million sift has been commited, another $1-million has been verbally pledged, and appraximately $350,000 has been raised from frlends, culty, staff and trustees. $375,000 in state and federal grants have been awarded, with an adeltional $500,000 10 $I-million in grants anticipated during the five year campaign. fh, Please provide the current asset allocation of your endowment. Do you have any plans tochange this allocation inthe near future? Answer: Currently all endowment funds ($100,784) are held in a money market fund. The college is planning to formalize ‘an endowment and investment policy inthe near future, and tis will likely include a clearly stipulated asset allocation, ‘and perhaps a move to a more aggressive investment vehicle. i, Please provide the current value of your endowment and your total cash and investments. (8) Axof Date) Endowment $100,784 6/30/2010 otal Cash and Investments (from audit) $1,261,054 6/30/2010 |. Please provide a monthly draw schedule forthe proposed project ( Be sure to include the expected start date and end ‘The College intends (o clase on the property in December 2010. With a loan amount is $6.7-million, the full amount would be drawn at that time to acquire the property, including legal fees and other closing expenses. 2) Audit Information 4. Please provide the past ive (S) years of annua! audited financial statements in paf mat or hard copy. '. Please provide all outstanding capital lease debt service schedules (Principal and Interest by Fiscal Year). «. Please provide projected operating results forthe next three (3) years, Please provie the projections in a format that can be ‘compared tothe actual results from the last audit, ‘Note: The FY2010 ait draft has been finalized. The final Bound version has not yet Been received, bu no additional changes are anicipated. ‘Note:The allocation of expenses functional areas forthe audi is greatly dependent on year-end information that is very dlificul to predict with accuracy a ths tine. These allocations wll depend on such information as numberof square fet tuilized by student housing, classrooms, and staff. With uncertainties about our moving daies an exact space allocations, “sch projections are cial. For comparison purposes below, we have allocated our toa! expense budget using the same percentage functional allocations asthe FY10 audit year. copy of ow five year operating budget projections, wth detailed line item expenses, i attacked and may provide more useful Information. This budget also shows the year-end FY2010 actual detail expenses for comparison purposes. DRAFT — Projected Projected Projected Evi0 zon 2012 2013 Revenues: Tuition and Fees $ 3,399,719 $ 4241618 § 5,374,728 $ 6,821,916 Less: Scholarships and Awards (569,936) __(781,724) (1,070,042) (1,435,393) ‘Net Tuition and Fees Revenue 2,829,783 3,459,894 4,304,686 5,386,323 Revenue Federal Student Aid $ 364201 $ 454,391 $ 575,777 $730,810, Other $6740 $ 5,700 $ 6900 $ 8,200 CContributions/Grants/Contracts $ 197,970 $ 100,000 $ 100,000 $ 100,000, ‘Annual Auction and Events $8338 $10,000 $ 50,000 $ 50,000 Application Instructions and Application Form a verifbes‘Requisite Financial Information (Education) Interest and Dividends Daycare Revenue ‘Student Food Service Income Student Rental Income ‘Total other Revenue/Grant/Support Total Revenues Expenses: ‘Program Services Instruction ‘Academic Support Student Services Auxiliary Services ‘Total Program Services Supporting Services Institutional Support Fundraising Total Supporting Services Capital Campaign Donations Capital Campaign Grants ‘Total Non-Operating ‘Change In Net Assets* 4, Please provide the Balance Sheet forthe three most recently completed years. Please provide the projections in a format that can be compared to the actual results from the last audit. Note: The FY2010 audit draft has been finalized. The final bound version has not yet been received but no additonal changes ‘are anticipated. Assets: (Current Assets Cash Restricted Cash Investments Tuition Receivable Perkins Loans Receivable - Current Portion Contributions Receivable - Current Port Federal Work Study Receivable Grants Receivable Prepaid Expenses ‘Total Current Assets Application Instructions and Application Form 5,000 178355 S 11,825 $ s -s s -3 $__147,000_$ 3736074 5 5000 $ 5,000 $ = $ 173160 $ = $ $9534 $ 71,929 239,350 § 302,626 $315,664 B14,441_8 1,272,997 $1,459,958 SSG HST _S GIES 5 SST SESS GMAT $ 1,192.419 $ 1,770,681 S 289,049 $ 429.223 § S 457,033 § 678,671 § 827679 $ 920,833 $137,205 $203,742 $248,476 $276,441 “$075,706 $508,317 $3,759,067 $4,182,145 5 2,159,450 523,463 $ 2,402,493 $582,378 3 1,096,184 $ 1,627,777 § 1,985,170 $ 2,208,598 $76,786 _$ 114023 $ 139.058 _$ 154,709, $1172.90 $741,801 2,124,228 $2,363,307 332406765 4MIGI18 _§ SABIIOS 5 OSS AD 8 = $ 2,000,000 $ 1,500,000 $ 1,250,000 = 873,000 500,000 250,000 '$Z873,000_$ 2,000,000 _S 1,500,000 SSeS FIAT _§ 1694 ES_F 101,09 DRAFT Acwal —— Actua mo yO) EVO $ 7042s $ 349553 $529,028 $ 550,630 $ 41,874 $ 39,262 5 -s - $ 32540 S 126944 $125,556 § 167409 $ 55750 $§ 51600 $ 74740 S$ 96310 $ 19850 5 31,931 S "4s $4580 5 18905 S471 $5520 $ _ $3178 § B76 5 14364 STse0.712 $6546 3908.17Requisite Financial Information (Education) ‘Non-Current Proper, Plant and Equipment: Land & Bui Building tmprovements Equipment Library Books and Art Less: Accumulated Depreciation Bond Issuance Costs Perkins Loans Receivable - Long Term Portion Contributions Receivable - Long Term Portion ‘Total Non-Current Assets ‘Accounts Payable Other Payables Rental Deposits ‘Accrued Payroll & Related Lis ‘Accrued Vacation Deferred Revenue ost Employment Benefits Payable - Current Portion [Notes Payable - Current Porton ‘Bond Payable - Current Portion Total Current Liabilities ‘Non-Curret Liabiiies Post Employment Benefits Payable - Long-Term Porton [Notes Payable - Long-Term Portion Bonds Payable - Long-Term Portion Refundable Advances - U.S. Government “Total Non-Current Liabilities ‘Total Liabilities [Net Assets: Unrestricted Temp. Restricted Perm, Restricted ‘Total Net Assets ‘Total Liabilities & Net Assets Application Instructions and Application Form 1,469,418 6,820 s 8 s : $ 1,309,602 $850,046 $372,081 (1,427,305) $47,792 1,469,418 94,930 1,203,902 ‘772,407 $359,829 5 (1,369,979) s . 224,075 s s : S 76,706 $1,112,554 $708,275 $357,270 '$(1,252,130) s : $375,344 $ 398,227 $ 366,306 $22,297 5 4606807 s 427357 s : 3 1,654,598 $482,209 5 2564,184 $1,568,107 121,556 82,486, 51772149 S_ 23,832 $3625.12 S 379,761 $920,311 s - $484,963 51,685,035 $1,306,037 76,250 72,681 3 1AS4,968 $43,650 “S3026,095 $7,952,566 $7,636,696 S347 21451 $102,135 S 30841 8 381113 $719,089 s : $474,362 31374564 SR BAGE_S TITS 2,058,407 $ 1,301,804 90,709 93,891 51486404 SaaS 3S TS SST‘Thoz ‘oe SNAL “IOULNOD TVNUGINI ONY FONVITENOD NO SL¥OdTa ONY LUOdTA Liaav “ONI ‘#9UTIOO NOLONITIAGBURLINGTON COLLEGE, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2011 ASSETS Current Assets: Cash - Note 2 $260,500 Restricted Cash - Note 2 & 3 40,321 Tuition Receivable - Note 4 120,043 Rental Security Deposit 1,600 Perkins Loans Receivable - Current Portion - Note S 189,477 Contributions Receivable - Current Portion - Note 6 127,655 Federal Work Study Receivable 37 Other Receivables 481 Prepaid Expenses 33,653 Property Held for Resale - Note 7 125,000 Total Current Assets 898,767 ‘Non-Current Assets: Property, Plant and Equipment: Land 8,097,360 Land Improvements 26,880 Buildings 3,061,908 Building Improvements 189,420 Equipment 612,080 Library Books and Art 394,675 Less: Accumulated Depreciation (456,630) ‘Total Property, Plant and Equipment - Note 9 11,925,693, Restricted Cash -Note 2 & 3 886,718 Bond Issue Costs and Legal Fees (Net of Accumulated Amortization) - Note 10 103,584 Perkins Loans Receivable - Long-Term Portion - Note 5 266,026 Contributions Receivable - Long-Term Portion - Note 6 894,190 Total Non-Current Assets 14,076,211, TOTAL ASSETS $ 14974,978 ‘The accompanying notes are an integral part of this financial statement, @)Exhibit I ‘LIABILITIES AND NET ASSETS ‘Accounts Payable $99,693 ‘Accrued Payroll & Related Liabilities 39,068 ‘Accrued Vacation 67,117 Deferred Revenue ~ Note 11 79,935 Post Employment Benefits Payable - Current Portion ~ Note 12 32,691 Current Portion of Bond/Notes Payable - Note 13 581,985 Total Current Liabilities 901,089 ‘Noncurrent Liabilities: ost Employment Benefits Payable - Long-Term Portion - Note 12 297,809 Bond/Notes Payable - Long-Term Portion - Note 13, 10,251,684 ‘Accrued Interest Payable - Note 13 65,700 Refundable Advances - U.S. Government - Note 14 489,336 Total Noncurrent Liabilities 11,104,529 Total Liabilities 12,005,618 Net Assets: Unrestricted: ‘Net Investment in Property, Plant dnd Equipment 1,075,693, Designated - Note 15 28,904 Undesignated 761,817 Total Unrestricted 1,866,414 ‘Temporarily Restricted - Note 16 1,022,302 Permanently Restricted - Note 16 80,644 Total Net Assets 2,969,360 ‘TOTAL LIABILITIES AND NET ASSETS $ 14,974,978‘Opertng Revenue, Grant and Other Suppo: "Tuition and ees Revenue: “Tuition and Fes Room & Board Les Seholerhip and Awards - ‘Note 18 ‘Net Tun and Fes Revenue (ther Revenue, rans and Support: Feder! Aid Pograns Otter 9 Contributions, Gants and Contracts Ga Aton and Bent Proceeds ‘NatTovestment Income (Net sets Released from Resticons- Note 19 “Toa Other Revenue, Grants end ‘Support Total Opening Revenue Operating Expenses: Progam Services: Tasrnction ‘Academie Support ‘Student Serves ‘Aaliry Servies ‘Supporting Servos nsitutonl oppor Fondling ‘Total Operating Expenses (Change in Net Aces Before Rental Revenue (Expenses) ‘and Non-operating Activites Renal Revenel(xpenss): Rental aeons Rental Expenses [Net Rental RevenelExpenses) [Non-operating Activites: erKind Conribtlons of Purnitre and Equipment (Guin on Sale of Real Estate ‘Lesson Write Down o Fair Market Vale for Property Held For Reale as Dispose of Equipment Loss on Ext Extingishment of Debt ‘otal Non-operating Activites Change in Net Aes (Net Assets July 1,2010 Nat Assets -June 30,2011 Ss 3934938 207436 919381 395 46940 our 206,715 4945 aus 20232 295.151 44 130,183 290.226 sigai¢ 135460 14900 120259 3.960511 157623 18240 3113 4sry 4975 283,197 2312) asin) (7792) 135.557 298307 1,568,107 S_1s6saue ‘The socompanying notes ran integral part of this Financial sttement © 2137 ° ° 20400) 900,746 tiie Permanently Reatieed Tota s ° S 3934938 ° 207836 319391 3322983 ° 46940 130 ‘ata 0 wings ° 494s 5860 ant oe a 1,802 4194055 842) 5017038 o 120,183 ° 1790326 ° sais ° 155,460 ° 1,450,068 ° 120259 18220 e313) 1453 84975 223,97 12312) @2sit) (67790) 155557 sagan Ln 52969360Note 6: ‘Note 7: Note 8: BURLINGTON COLLEGE, INC. ‘NOTES TO THE FINANCIAL STATEMENTS: JUNE 30, 2011 col IONS. Contributions receivable consists of the following: ‘Unconditional promises expected to be collected in: Less than one (1) year $ 127,655 One (1) to Five (5) years 176,130 More than Five (5) Years 1,000,000 Total Pledges 1,303,785 Less discount to present value at 3% (281,040) Total discounted value of pledges 1,021,845 Less Current Portion 121.655) Total Non-Current Portion $824,190 Included in contributions receivable is $99,100 due from Board members, $5,000 from former Board members, and $14,435 due from current employees. Also included is a valid willed settlement estimated at $75,000 fiom the estate of a former Board member and binding estate gifts of $1,000,000 (before discount), PROPERTY HELD FOR RESALE Property held for resale consists of the land and building at 11 Lakeview Street. During fiscal year 2011, the College evaluated the use of this property and determined it reasonable to put the property on the market as they had no current use for the property. The fair market value of the property is $125,000. Subsequent to year end, the College entered into a purchase and sale agreement for the sale of this property in the amount of $125,000. PURCHASE OF LAND AND BUILDINGS During fiscal year 2011, the College completed two significant real estate transactions; the sale of an existing academic building and the purchase of a new campus consisting of three separate lots, two of which have a building on them. ‘The closings on these transactions were finalized on December 31, 2010. Included in Property, Plant and Equipment is land at the new campus valued at $7,640,870, buildings at the new campus valued at $2,332,250, and an improved parking lot valued at $26,880. Land value estimates were based on lot sizes and the appraised per-acre value of the land parcel with no buildings. ‘The value of the improved parking lot was based on an estimated replacement cost of $53,760 and a remaining life of 10 out of 20 years. a3)croz ‘oe NOE IOULNOD TWNUAINI ONV SONVITANOD NO SIYOdTa GNV LUOdTA LIGAV “ONI ‘EDATIOO NOLONIRINGBURLINGTON COLLEGE, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2012 ASSETS Current Assets: Cash - Note 2 $70,115 Restricted Cash - Notes 2 & 3 36,726 Tuition Receivable - Note 4 141,795 Rental Security Deposit 2,400 Perkins Loans Receivable - Current Portion - Note S 183,477 Contributions Receivable - Current Portion - Note 6 81,780 Grants Receivable - Note 7 124,818 Other Receivables 370 Prepaid Expenses 18,733 Total Current Assets 660,214 ‘Non-Current Assets: Property, Plant and Equipment: Land 8,097,361 Land Improvements 26,880 Buildings 3,061,908 Building Improvements 1,318,277 Equipment 733,249 Library Books and Art 411,855 Less: Accumulated Depreciation (652,441) Total Property, Plant and Equipment - Note 8 12,997,089 Restricted Cash - Notes 2 & 3 14,727 Bond Issue Costs and Legal Fees (Net of Accumulated Amortization) - Note 9 98,272 Perkins Loans Receivable - Long-Term Portion - Note 5 279,551 Contributions Receivable - Long-Term Portion - Note 6 957,534 Total Non-Current Assets 14,347,173 TOTAL ASSETS $15,007,387 ‘The accompanying notes are an integral part of this financial statement. @)IET AS ‘Current Liabilities: ‘Accounts Payable Accrued Payroll & Related Liabilities Severance Payable - Note 10 ‘Accrued Vacation Rent Deposits Deferred Revenue - Note 11 Post Employment Benefits Payable - Current Portion - Note 12 Line of Credit - Note 13 Current Portion of Bond/Notes Payable - Note 14 Total Current Liabilities Noncurrent Liabilities: ost Employment Benefits Payable - Long-Term Portion ~ Note 12 Bond/Notes Payable - Long-Term Portion - Note 14 ‘Accrued Interest Payable - Note 14 Refundable Advances - U.S. Government - Note 15 ‘Total Noncurrent Liabilities Total Liabilities, Net Assets: Unrestricted: ‘Net Investment in Property, Plant and Equipment Undesignated/(Deficit) Total Unrestricted ‘Temporarily Restricted - Note 16 Permanently Restricted - Note 16 Total Net Assets TOTAL LIABILITIES AND NET ASSETS Exhibit 1 $ 161,475 $7,030 123,427 60,612 7,150 160,406 31,285 250,000 113,572. 964,957 289,497 10,645,819 197,100 493,834 11,626,250 12,591,207 2,222,204 (972,346) 1,249,858 1,013,175 153,147 2,416,180 $15,007,387‘Operating Revenue, Grant and Other Suppor: “Tito and Fees Revere “Tuition and Fees ‘Less Scholarships and Awards = Nove 18 Net Tuition and Fees Revenue (ther Revenue, Grans and Support Federal Aid Programs ‘other Beonsibsions, Grats and Conn aa not Eves Pees ‘nay Encries fa mete neme ft Ans Relewed om sins No 19 “otal Otter Reveme, Grants and Support “Total Operating Revenue Oneming gens Academie Support Student Services ‘Aili Services Institatonl Support Total Operating Expenses ‘Change in Net Acs Before Non-Operating Act ‘Non-operating Activites Tw-Kind Contribution of Furniture and Equipment Expenses Related to lle Space - Note 20, “Transfer Between Net Ase Categories Based on Change in Dono’ Intent - Note 21 “Tal Non-operating Activites (Change in Ne Asses Net Assets July 12001 Net Asets- Se 30,2012 BURLINGTON COLLEGE, INC. ‘STATEMENT OF ACTIVITIES [FOR THE YEAR ENDED JUNE 30,2012 Tenpoaiy Unrest Resiced § 4205659 s. 8 crea ° amu wosir ° 2657 ° 976 nase vu ° aanae ° eo ‘ am 645) 102548 cos cos Lanass ° S68) ° sisast 0 20388 o Lari o agsa375 ast 80 15,5 0 270995) a ° 0,000 2497, 70.900, (616556) e127) Lasse s_i2osse 5 sgn ‘The accompanying notes ar an integral pot of this ancl statement, o Pemanenty Rearited 2503 2.503 790 2.00 nas s. esi Tosa $ 4205653 (76412) ams2a1 ogi 2689 54390 1774 maa 6236 o 525904 4355.165 xmszss 37681, 5184s? 247358 73s 4853375 (298210) 15,128 (270095) ° 254970) 653,180) 2969360 5 _2416,180BURLINGTON COLLEGE, INC. NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2012 Note 6: CONTRIBUTIONS RECEIVABLE Contributions receivable consists of the following: Unconditional promises expected to be collected in: Less than one (1) year $81,780 One (1) to Five (5) years 114,360 More than Five (5) Years 1,000,000 Total Pledges 1,196,140 Less discount to present value at 1.67% (156,826) Total discounted value of pledges 1,039,314 Less Current Portion 1,780) Total Non-Current Portion $_957,534 The College has reviewed the current status of contributions receivable and has determined them all collectible, therefore, no allowance is necessary. The College has elected to use the Fair Value Option for valuing their contributions receivable. FASB ASC 825-10-55-5 “Fair Value Option” allows the College to elect irrevocably the fair value measurement as the initial and subsequent measure of most receivables. The College established a measurement date and revised the fair value as of that date to reflect current market conditions, ‘The College has elected June 30 to be their measurement date to revise the fair value of their contributions receivable. Management is using the U.S. Treasury ten (10) year T-Bill rates as of June 30 to revise their discount rate. Management believes this is the most accurate valuation of the current market conditions. The gain or loss resulting from the change in the fair value is recorded as an increase or a decrease in temporarily restricted net assets. The change in the fair value resulted in a gain of $125,114 being reported as contribution revenue. Included in contributions receivable is $69,150 due from Board members and $6,240 due from current employees. Also included is a valid willed settlement valued at $20,000 from the estate of a former Board member and a binding estate gift of $1,000,000 (before discount). a3)e107 ‘oe ANNE JOULNOD TWNYALNI GNV SONVITAWOD NO SLUOdTa ANV LUOdTA LIGAV “ONI ‘SDATION NOLONITUNEBURLINGTON COLLEGE, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2013 ASSETS Current Assets: Cash - Note 2 S$ 7,936 Restricted Cash - Notes 2 & 3 43,975 Tuition Receivable - Note 4 280,803 Rental Security Deposit 7,100 Perkins Loans Receivable - Current Portion - Note 5 188,544 Contributions Receivable - Current Portion - Note 6 44,902 Other Receivables 5,975 Prepaid Expenses 16,093 Total Current Assets 595,328 Non-Current Assets: Property, Plant and Equipment: Land 8,097,361 Land Improvements 26,880 B 3,061,908 Building Improvements 1,420,460 ‘Campus Improvements 33,118 Equipment 762,177 Library Books and Art 410,797 Less: Accumulated Depreciation (868,818) Total Property, Plant and Equipment - Note 7 12,043,883 Restricted Cash - Notes 2 & 3 8 Bond Issue Costs and Legal Fees (Net of Accumulated Amortization) - Note 8 92,960 Perkins Loans Receivable - Long-Term Portion - Note 5 279,350 Contributions Receivable - Long-Term Portion - Note 6 879,454 Total Non-Current Assets 14,195,685 TOTAL ASSETS $14,790,983. ‘The accompanying notes are an integral part of this financial statement. @)LIABILITIES AND NET ASSETS Accrued Payroll & Related Liabil Severance Payable - Note 9 Accrued Va Rent Deposits Deferred Revenue - Note 10 Post Employment Benefits Payable - Current Portion - Note 11 Retirement Payable Line of Credit - Note 12 Current Portion of Bond/Notes Payable - Note 13, Total Current Liabilities Noncurrent Liabilities: Post Employment Benefits Payable - Long-Term Portion - Note 11 Bond/Notes Payable - Long-Term Portion - Note 13 ‘Accrued Interest Payable - Note 13 Refundable Advances - U.S. Government - Note 14 Other Liability Net Assets: Unrestricted: Net Investment in Property, Plant and Equipment Undesignated/(Deficit) Total Unrestricted ‘Temporarily Restricted - Note 15 Permanently Restricted - Note 15 Total Net Assets TOTAL LIABILITIES AND NET ASSETS Exhibit 1 $270,657 44,952 38,548 33,516 14,300 223,733 29,509 20,000 650,000 118,659 1,443,874 285,709 10,524,044 325,159 504,786 50,000 11,689,698 13,133,572 2,301,180 (1,705,993) 595,187 918,223 144,001 1,657,411 $_14,790,983,Operating Revenue, Grant and Oter Suppor: “Tuition and Fees Revert: “ution snd Fees Less Scholarships and Avards = ‘Note 17 ‘Net Ttion and Fest Revenue (ther Revenue, Gras and Support Federal Aid Programs Other Conribtions, Gens and Contrcts (Gala Avetion and Event Proceods ‘Ausliry Emerprises Net investment Income ‘Net Assets Relesed from Restrictions - Note 18 ‘ota Other Revenue, Gran and Support ‘Total Operating Revenue Operating Expenses: Instruction ‘Aeademic Support ‘Stade Services ‘Auwlinry Services Instiutionl Support “Tal Operating Expenses ‘Change in Net Ase Before Non-Operating Activites Non-operating Activites: Expenses Related to le Space- Note 19 Other Expense ‘otal Non-operating Activites ‘Change in Net Assets Net Assets July 1,2012 Not Assets June 30,2013, BURLINGTON COLLEGE, INC. ‘STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2013 Temporarily Pemanetly Unrestricted Resvicied 5 4gs2sea s ° s ° S71 614 4320930 © o om ° ° 708 ° ° oss 3602 ° 4325 ° ° 2555658, ° ° 72a 4 ° 0146) 437792 (24952) e146) 47segm2 94952) 9.146) 2167932 ° ° 386639 ° ° sons ° ° 224394 ° 116377 © ° 097727 (339.005) (94952) 146) 265666) ° ° 50000 o © (315666 (6547) (04982) (148) 1.249858 4013,195 13,147 5 _39587, S_918233 S_144001 ‘The accompanying note re an nepal pat of his Financial statement. ” ‘oa S 4992,544 571614) 4320930 ane 7304 3337 4525, 255658 7246 ansooe 46404 2167932 386,639 ‘soazes 224384 1.816577 sosn7m (443,103) (265,66) 50,000) 315666) 758,76) 216,180 sgs7aBURLINGTON COLLEGE, INC. ‘NOTES TO THE FINANCIAL STATEMENTS, JUNE 30, 2013 Note 6: CONTRIBUTIONS RECEIVABLE Contributions receivable consists of the following: Unconditional promises expected to be collected in: Less than one (1) year $ 44,902 ‘One (1) to Five (5) years 83,760 More than Five (5) Years 11,000,000 Total Pledges 1,128,662 Less discount to present value at 2.52% (204,306) Total discounted value of pledges 924,356 Less Current Portion 44,902) Total Non-Current Portion $_879.454 The College has reviewed the current status of contributions receivable and has determined them all collectible, therefore, no allowance is necessary. ‘The College has elected to use the Fair Value Option for valuing their contributions receivable. FASB ASC 825-10-55-5 “Fair Value Option” allows the College to elect irrevocably the fair value measurement as the initial and subsequent measure of most receivables. The College established a measurement date and revised the fair value as of that date to reflect current market conditions. The College has elected June 30 to be their measurement date to revise the fair value of their contributions receivable. Management is using the U.S. Treasury ten (10) year T-Bill rates as of June 30 to revise their discount rate. Management believes this is the most accurate valuation of the current market conditions. The gain or loss resulting from the change in the fair value is recorded as an increase or a decrease in temporarily restricted net assets. The change in the fair value resulted in a loss of $47,480 being reported as contribution revenue. Included in contributions receivable is $34,900 due from current or former Board members and $6,352 due from current employees. Also included in contributions receivable is a binding estate gift of $1,000,000 (before discount). (13)