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Financial Statements

In accordance with U.S. Generally Acceptable Accounting Principles (GAAP), The Boston Architectural College (BAC) has fulfilled the requirement for preparation and fair presentation of institutional financial statements.

2025 Financial Statements

Fiscal Year Ended June 30, 2024
The Boston Architectural College (BAC) is a private, nonprofit institution dedicated to practice-based design education. The College’s financial statements for the fiscal year ended June 30, 2024 were audited by an independent accounting firm, which issued an unmodified (clean) audit opinion, indicating that the financial statements fairly present the College’s financial position in accordance with generally accepted accounting principles.

2025 Financial Summary and Statements

Overall Financial Position
As of June 30, 2024, the College reported total assets of approximately $38.0 million and total liabilities of approximately $21.6 million, resulting in total net assets of $16.4 million. Net assets represent the difference between what the College owns and what it owes, and include both unrestricted funds available for operations and donor-restricted funds designated for specific purposes such as scholarships and capital improvements.

Operating Results
For fiscal year 2024, the College generated $17.3 million in operating revenue, primarily from tuition and fees, which continue to be the College’s primary revenue source. Operating expenses totaled $19.2 million, reflecting the cost of instructional programs, student services, academic support, administration, facilities, and fundraising.

The difference between operating revenues and expenses resulted in an operating loss of approximately $1.85 million for the year. This reflects ongoing investments in academic delivery, student support, and institutional operations during a period of enrollment and revenue transition.

Non-Operating Activity and Net Asset Change
In addition to operating activity, the College benefited from non-operating items, including investment performance and donor activity related to endowment and capital purposes. These non-operating activities partially offset the operating loss. Overall, total net assets decreased modestly by approximately $138,000 during the year, representing a relatively stable year-over-year financial position.

Liquidity and Cash
The College ended the fiscal year with $1.48 million in cash and cash equivalents, an increase from the prior year. In addition, the College had access to a $1.0 million unsecured line of credit, which was unused at year-end. Management reports that financial resources were sufficient to meet current obligations as they came due.

Debt and Long-Term Obligations
The College carries long-term debt related to previously issued Massachusetts Development Finance Agency bonds used to support its facilities. As of June 30, 2024, outstanding bond debt totaled approximately $10.1 million, net of current maturities. The College remained in compliance with all debt covenants during the fiscal year.

Endowment and Donor-Restricted Funds
The College’s endowment totaled approximately $11.1 million at year-end. These funds are invested to provide long-term support for scholarships, academic programs, and institutional sustainability. The Board of Trustees follows a prudent spending policy designed to balance annual support with long-term preservation of endowment value.

Audit and Governance
The independent auditors reported no material weaknesses in internal control over financial reporting.

Conclusion
The FY2024 audited financial statements reflect a stable financial foundation supported by diversified assets, controlled debt levels, and ongoing oversight by the Board of Trustees. The College continues to manage financial challenges associated with higher education while investing in its academic mission, students, and long-term sustainability.

2024 Financial Statements

The Statements of Financial Position show that the College possessed approximately $37.9 million in total assets, with total liabilities of $21.5 million and net assets of $16.3 million as of June 30. The BAC’s operations generated a total revenue of $17.3 million while incurring operating expenses of $19.1 million. Non-Operating Activities included a $1.7M gain resulting in change in net assets at a loss of ($137,988).

2024 Financial Summary and Statements


Highlights:

  • Total operating revenue remained consistent with the prior year excluding additional board designated draw in prior year of ~$2.2M.
  • Expenses decreased ~$1M from prior year as a result of cost reduction strategies.
  • Overall change in net assets essentially breakeven at a loss of $138k, up from a loss of $1.9M .
  • $1.4M of investment gain, resulting from ~13.5% return on investment.
  • Total investments increased from $10.2M to $11.1M.
  • The institution did not incur any new debt in FY24.
  • Repayment of old debt dropped from $10,647,855 to $10,072,178 in FY24.
  • Institutional liquidity went from $10,431,071 in FY23 to $10,984,105 in FY24.
  • Deferred revenues increased from $8.6M to $10.2M due to enrollment gains.

2023 Financial Statements

The Statements of Financial Position show that the College possessed approximately $37.8 million in total assets, with total liabilities of $21.2 million and net assets of $16.6 million as of June 30. The BAC’s operations generated a total revenue of $19.6 million while incurring operating expenses of $20.2 million. The change in net assets from operations was $(619,544). Net revenue from tuition and fees decreased by $(592,570).

In the fiscal year ending June 30, 2023, the College continued to grapple with the post-COVID challenges of resuming on-campus operations, incurring an operating loss of $(694,418). We observed total revenues and other support decrease by $(239,806).

2023 Financial Summary and Statements


Highlights:

  • Total operating revenue and expenses remained consistent with the prior year.
  • Loss from operations ($620k) down from prior year ($2.1M) due to additional draws from board designated funds (~$2.2M).
  • $1.1M in total capital additions with $810k related to the geothermal project and $146k related to the restoration project.
  • $1.2M of investment gain, resulting in ~10.65% return on investment.
  • Total investments decreased from $12.6M to $10.2M attributable to additional board designated endowment draw during 2023 to fund operations.
  • The institution did not incur any new debt in FY23.
  • Repayment of old debt dropped from $11,764,481 in FY22 to $11,228,402 in FY23.
  • Institutional liquidity went from $9,387,777 in FY22 to $9,871,267 in FY23.

2022 Financial Statements

The Statements of Financial Position show that the College possessed approximately $40 million in total assets, with total liabilities of $19.8 million and net assets of $20.2 million as of June 30. The BAC’s operations generated a total revenue of $19.3 million while incurring operating expenses of $20 million. The change in net assets from operations was $(704,042.00). Net revenue from tuition and fees increased by over $200,000.00.

In the fiscal year ending June 30, 2022, the College grappled with the challenges of resuming on-campus operations, incurring an operating loss of $1.3 million. Nevertheless, despite these obstacles, we have observed a rise in total revenues and other support by $1.8 million. This includes a $224,306 increase in net tuition and fees, thanks to our growing student enrollment.

2022 Financial Summary and Statements


Highlights:

  • In view of the pandemic's effect on student finances, we've set aside an allowance for doubtful accounts amounting to $1.4 million.
  • Like many institutions, the market downturn led to a $2.2 million decrease in the value of BAC's investments. This decline largely contributed to the $2.8 million decrease in net assets.
  • The institution’s cash balances went from $1,169,675 in FY21 to $454,035 in FY22, due to forgiveness of the Paycheck Protection Program loan in FY2021.
  • Capital expenditures remained on par with the prior year, going from $668,283 in FY21 to $607,089 in FY22.
  • The institution did not incur any new debt in FY22.
  • Repayment of old debt dropped from $12,280,994 in FY21 to $11,764,481 in FY22.
  • Institutional liquidity went from $10,820,525 in FY21 to $9,387,777 in FY22.

2021 Financial Statements

The Boston Architectural College's financial summary and audited financial statements for 2021 and a Fiscal Year 2019 to Fiscal Year 2021 Financial Summary.

2020 Financial Statements

The Boston Architectural College's financial summary and audited financial statements for 2020.

2019 Financial Statements

The Boston Architectural College's financial summary and audited financial statements for 2019.

Need Assistance?

If you have any questions, please contact the Vice President of Finance at VPFA@the-bac.edu.

The BAC's publications are available upon request from the Director of Marketing and Communications at Communications@the-bac.edu.