Academy Budget Accommodates Pandemic
By Jeannie Eom, Tucker Gibbs, Clark Wu
The effects of the COVID-19 pandemic have severely impacted the budget and operations of the Academy. Over the spring and summer, the Trustees, in conjunction with the Finance Department, established the budget for the year, factoring in numerous additional expenses.
By reallocating substantial portions of the annual budget, the Academy has covered many of the new expenses brought on by operational costs during the pandemic. As various travel programs and events have been canceled in accordance with the Academy’s COVID-19 protocols, the Finance Department redirected those funds to build health and safety infrastructure on campus and fuel a host of on-campus dining and event initiatives. One popular addition to the on-campus experience is the Pizza Truck, currently funded by an anonymous alum.
The process of setting the budget for each academic year goes through multiple departments on campus, including the Trustees. After a close analysis by the office of Chief Financial Officer Marijka Beauchesne, the Principal, along with the Trustee Budget and Finance Committee, continues to review it thoroughly. Finally, the budget is sent to the full Board of Trustees for approval, who typically discuss and approve of it during a meeting in May. However, as the unique circumstances this year called for additional planning to accommodate pandemic-related expenses, the budget was only authorized this August.
“The additional expenses were significant and are a material burden on the Academy’s finances,” President of the Trustees Morgan Sze said. Despite the complexity of budgeting this year, the “mission to support and provide our students with an Exeter education in the best manner possible remained paramount throughout and guided [the Trustees’] planning... It is the pandemic itself that has posed the biggest challenge to our mission; additional expenses were incurred in furtherance of our mission.”
Due to both Academy and New Hampshire restrictions, in-person events have been eliminated from many departments’ schedules. In the spring, reunions for many classes were held virtually, and all in-person student activities were either canceled or moved online. In addition, Institutional Advancement has severely limited employee travel, largely canceling in-person Exeter-sponsored fundraising events around the globe. Admissions has similarly eliminated their “roadshow” program.
In the spring, the Trustees also approved a pay freeze for Academy faculty. The Academy’s last pay freeze occurred in the aftermath of the Great Recession in 2008. Raises have occurred every year since then, up until the current fiscal year. Whether the freeze will continue is unknown.
The Academy additionally established ambitious fundraising goals for the Exeter Fund, which will be used in part to compensate for COVID-related expenses. Director of Institutional Advancement Morgan Dudley, who coordinates the Exeter Fund, noted that she believes the Fund will receive “strong support and commitment [from] alumni and parents.”
Director of Investments Justin Merrill added that, like the broader financial markets, the Academy endowment’s investments have “generally recovered” from losses felt during the start of the pandemic. In February and March, the stock market sell-off lowered the value of Exeter’s endowment investments.
Sze affirmed the burden the Academy continues to face, but he remained appreciative and positive in his outlook on fall term proceedings. “We are extremely grateful for the dedication of all of our faculty, staff and administration in working so hard over the summer to make possible the reopening of campus at the beginning of September and their important ongoing work with students back on campus.”