Since President Hillman announced her termination plan for Mills College on St Patrick's Day, let me respond by calling Shenanigans on the Balance Sheet.
In our earlier post 1. Mills College is Worth Billions. Who Gets The Prize?
, we quoted the Mills College endowment being worth $191.3 million in 2018. We now have more recent information than that: $196.4 million at June 30, 2019. We also have a more detailed breakdown of how that vast wealth is held.
With stock markets hitting record highs in 2020 and 2021, the Mills College endowment presumably grew even larger than this (Current Year 2019):
Source: IRS Form 990, financial year ended 30 June 2019
The investment banking fees, excuse me, "administrative expenses" for the endowment were $1,228,438 for the year. Even after that, the endowment investments grew $5,125,358. The endowment is therefore growing at 2.6%. The fees and the return seem good enough for an institution of this age and prestige. The financial challenges of the college therefore must relate to the operations and the plans of the leadership, not seemingly the management of its sizable endowment.
THE PLOT THICKENS
Meanwhile the 135 acres of prime East Bay real estate, valued in billions, is held on their balance sheet for $291,686. Was this the cost price in 1876?
It seems surprising the auditors sign off on such a serious understatement of the value of a primary asset. If anyone has more information about this, please comment.
Note the buildings, improvement and equipment are valued at more than $100 million, even after massive depreciation charges.
As well as 9 figures' worth of its own buildings, and billions of land, Mills College owns 8 figures' worth of real estate investments.
For some reason Mills College has massive amounts of money invested in Central America and Europe
We are told the annual budget deficit (impacted by COVID) is $3 million. Depreciation - a non-cash expense from year to year - was $4.8 million. They are also recording deferred tax assets despite having no tax liability as a 501(c)3 non-profit Federally and in the State of California:
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SEE ALSO
1. Mills College is Worth Billions - Who Gets the Prize?
2. 135 Acres Worth Less than $300,000? College Owns Hundreds of Millions in Equities, Real Estate
3. We Got the Mills College Receipts - From the IRS
4. Mills College Financially "Very Healthy" With 100% Rating From Charity Navigator
5. Mills College 2017 Financial Stabilization Plan
6. Gasoline on the Burning Platform - Men to Live on Mills College Campus
7. UC Berkeley "Life and Death" Financial Crisis, How Can They Afford Mills College Problems Too?
8. Strong, Proud and Determined to Save the College We Love
9. Sue the Board - It Worked For Sweet Briar, Could It Work For Mills College?
10. Déjà Vu - Organized Faction of AAMC Pushing UC Merger Plan Similar to Board of Trustees
11. Mills College Leadership Caught Speechless by AAMC Resistance
12. Save Mills Coalition Steps Up, Hillman Administration Gets Voted Down
13. Mills College Community Stunned by Another Hillman Hand Grenade
14. The Art of the Steal 2.0 - Billion Dollar Black Holes From Barnes to Bender
15. Trustee vs Trustee - Mills College Board Members Sue For Transparency
16. F*CK YOUR INDEPENDENCE: Hillman Declares War Against Mills College Alumnae
17. White Supremacy Reigns in Mills College and Northeastern Boards