Troy University
SACS Reaffirmation of Accreditation

The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services.

The member institution provides the following financial statements: (1) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a system-wide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (2) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the change in unrestricted net assets attributable to operations for the most recent year; and (3) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board.

Audit requirements for applicant institutions may be found in the Commission policy entitled “Accreditation Procedures for Applicant Institutions.” (Financial Resources)

X Compliance   Partial Compliance   Non-Compliance


Troy University is in compliance with this Core Requirement.

Troy University prepares and publishes annual financial reports which show the University’s total and consolidated results for financial operations. The audit reports and management letters for years 2005-2006 and 2006-2007, conducted by the Department of Examiners for the State of Alabama, include the corresponding management comments and notes to financial statements. In addition, the audited statements include the financial statements of the Troy University Foundation.

The audited reports, along with the annual budgets for fiscal years 2006-2007 and 2007-2008 clearly show that Troy is a financially stable academic institution. Troy’s financial resources are sufficient to maintain its physical infrastructure and support the programs derived from the University’s mission statement.

Troy University considers its operations to be stable and adequate to meet its financial requirements because

  • The resources obtained from tuition and associated activities are sufficient to offer and maintain high quality academic and co-curricular programs, which are aligned with the Troy University mission statement,
  • The resources are sufficient to maintain the functionality of its physical infrastructure and to enhance the appearance of physical facilities, which supports the mission of the University, and
  • Troy University’s assets are complemented by donations from the Troy University Foundation through fundraising campaigns and investments.

As shown in Table 1, this financial stability is further reflected in Troy’s steady increase in net assets. The total annual change in a university’s net assets is defined as the increase or decrease in assets from a fiscal year’s financial activity. An increase in net assets is a positive accumulation of financial value (surplus) concerning all the fiscal transactions in a fiscal year. Troy University has experienced a significant increase in net assets since fiscal year 2002. Total ending net assets have increased by $66.2 million (79.3 percent from fiscal year end 2002 through fiscal year end 2006. This increase reflects an impressive increase in both capital assets (71 percent) and unrestricted assets (86.8 percent).



  For the Year Ended September 30
  (amounts expressed in thousands)
  2006 2005 2004 2003 2002
Total revenues (from schedule of revenues by source) 201,324 182,959 159,525 149,461 127,620
Total expenses (from schedule of expenses by use and function) 180,966 169,296 149,369 134,944 118,847
    Income before other revenues, expenses, gains and losses 20,358 13,663 10,156 14,517 8,773
Permanent Endowment Additions 246 0 130 183 (6,342)
Gifts/Transfers from Troy University Foundation (92) 2,403 2,527 3,391 958
    Total changes in net assets 20,512 16,066 12,813 18,091 3,389
Net assets, beginning 129,112 113,233 99,326 81,905 80,067
    Net assets, ending 149,624 129,299 112,139 99,996 83,456
Invested in capital assets, net of related debt 67,426 59,478 51,764 43,674 39,349
Restricted - expendable 2,321 2,574 3,640 1,742 548
Restricted - nonexpendable 1,290 1,620 1,500 1,500 1,500
Unrestricted 78,587 65,627 55,235 53,080 42,059
    Total 149,624 129,299 112,139 99,996 83,456

The basis for financial stability

Troy University’s financial stability is based on a constant increase in revenue and effective cost control. The increase in revenue has come from four main sources as evidenced by Table 2:

  1. strong increases in student enrollment,
  2. modest increases in tuition,
  3. recent large increases in state appropriations, and
  4. growth in investment income due to increases in interest rates and cash reserves.

Tuition revenue has increased by $44.4 million (74.1 percent) from fiscal year 2002 to 2006. Troy University’s appropriations from the State of Alabama have increased by $7.4 million (20.5 percent) between 2002 and 2006. Investment income for investments and cash has increased $3.8 million from 2002 to 2006. Total revenue from all sources within Troy University has increased $79.2 million (64.8 percent) from fiscal year 2002 through 2006.



  For the Year Ended September 30
  (amounts expressed in thousands)
  2006 2005 2004 2003 2002
Student tuition and fees (net of scholarship allowances) 104,377 98,181 81,426 72,536 59,939
Federal grants and contracts 28,479 23,847 20,017 18,763 12,892
State and local grants and contracts 5,538 4,261 5,099 5,535 4,438
Nongovernmental grants and contracts 999 684 396 451 695
Sales and services of educational and other activities 6,802 5,558 6,000 5,454 4,617
Sales and services of auxiliary enterprises (net of scholarship allowances) 7,617 11,301 9,846 9,764 8,861
Other operating revenues          
    Total operating revenues 153,812 143,832 122,784 112,503 91,442
State appropriations 43,516 37,133 35,808 35,966 36,060
Gifts/Transfers from Troy Foundation (92 2,403 2,527 3,391 958
Investment income 3,961 1,994 933 992 116
Permanent endowment additions 24 0 130 183 (6,342)
Other non-operating revenues 35 0 0 0 2
    Total non-operating revenues 47,666 41,530 39,398 40,532 30,794
Total revenues 201,478 185,362 162,182 153,035 122,236

This robust increase in revenue is mirrored by the strong increase in students attending Troy University exhibited in Table 3. During the fall of 2002, Troy’s FTEs under ACHE (Alabama Commission on Higher Education) method was 11,720. During the fall of 2006, Troy’s FTE count was 17,086, an increase of 46 percent.


Undergraduate and Graduate FTEs

Enrollment 2006 2005 2004 2003 2002 2001
        and Graduate FTE
17,086 16,900 16,374 14,559 12,998 11,720
    Undergraduate and Graduate Headcount            
    Percentage of Men 42% 42% 44% 44% 46% 43%
    Percentage of Women 58% 58% 56% 56% 54% 57%
    Percentage of Black 39% 38% 37% 35% 32% 30%
    Percentage of White 48% 50% 52% 54% 56% 56%
    Percentage of Other 13% 12% 11% 11% 12% 14%

These increases in students did not come at the expense of admissions standards. Table 4 below displays the average ACT test scores for students accepted into Troy University. Those scores are the same as seven years earlier. These scores are also on par with the average national ACT score.



  2006 2005 2004 2003 2002 2001 2000 1999
Admissions-Freshman (Troy Campus Only)                
    Accepted as a Percentage of Applications 89% 94% 64% 69% 74% 74% 68% 78%
Percentage of Accepted who enrolled 48% 46% 82% 42% 45% 47% 50% 50%
Average ACT Test Scores 20.7 20.7 20.4 20.4 20.7 20.9 21.0 20.6
National Average ACT Score-Total N/A 21.1 20.9 20.9 20.8 21.0 21.0 21.0

Troy’s budgetary process

The budget process begins in early April when budget worksheets are mailed from the Troy University budget director under the direction of the Senior Vice Chancellor for Finance and Business Affairs. The worksheets are sent to department heads throughout Troy University. Those worksheets include information concerning salaries and expenses. Instructions are given to department heads concerning acceptable changes for the next year. Department heads must justify budgeted items that exceed the previous year’s budget.

Once the department heads complete their budgets, the various vice chancellors, deans and university-wide directors review them. After their review, the four senior vice chancellors make any necessary adjustments. Once those are completed, the Senior Vice Chancellor for Finance and Business Affairs reviews the tentative budget and submits it to the Chancellor who makes any final adjustments. The budget is then submitted to the Board of Trustees (usually in early August) for approval.

After approval of the final budget, each department can adjust its budget. The budget revision is submitted and approved by one of the four senior vice chancellors or a designee. The Senior Vice Chancellor for Finance and Business Affairs then approves the revision. After its approval, the budget revision is then sent to the budget director for input into the general ledger system (Datatel).

In addition, each department receives weekly reports detailing its expenses versus the annual budget. The general ledger system requires a manual override before an invoice is paid against a general ledger account number where budgeted funds are not available. The accounts payable process is centralized so that maximum control of payments is ensured.

The Troy University budget

Troy University has a documented annual budgetary process to ensure that Troy is fiscally responsible in fulfilling its mission. The Senior Vice Chancellor for Finance and Business Affairs is responsible for the preparation of the University budget and oversight control of the budget. The Troy University Chancellor approves each preliminary annual budget before its presentation to the Troy University Board of Trustees. The Board of Trustees must approve the annual budget before it is enacted. Tables 5 and 6 illustrate the approved annual revenue and expense budgets for fiscal years 2004 thru 2007 and the pro forma budget for 2008. The pro forma 2008 budget projects a strong growth in revenue and a modest increase in operating expenses.

Table 5, Unrestricted Revenue

Table 6, Unrestricted Expenses

Board of Trustees Budget Control

Table 7 provides the dates of Troy University Board of Trustee meetings with asterisks indicating those meetings with budget approval sessions. Minutes of Board of Trustee meetings are available online.

Table 7


Meeting Dates September 2004 – July 2008
July 25, 2008 *
May 1, 2008
July 27, 2007*
May 10, 2007
March 2, 2007
November 18, 2006
August 4, 2006*
March 10, 2006
September 10, 2005*
May 6, 2005
March 11, 2005
September 9, 2004*
* Budget Approval Sessions


Troy University's bond ratings are listed as A1 by Moody's.

Capital Campaign

Troy University is currently in the silent phase of a capital campaign with a long-term goal of raising $50 million. The Building Beyond Boundaries Campaign will support increased funding for need-based scholarships, communication facilities to increase global connectivity, a new international student center, continued advances in technology and software, a new academic center on the Dothan campus, an extended campus presence in Phenix City, additions to the School of Music, an eminent scholar’s initiative for the university, an Honors College on the Troy campus, and the establishment of a Quality Enhancement Institute for the Troy faculty.


Troy University is in compliance with this requirement. Additional information is available in Comprehensive Standards 3.10.1, 3.10.2 and 3.10.4.


Supporting Documentation Location
Audit Report 2005-2006, Alabama Department of Examiners of Public Accounts
Audit Report 2006-2007, Alabama Department of Examiners of Public Accounts
Board of Trustees Minutes
Bond Ratings
Budget Preparation Calendar
Comprehensive Standard 3.10.1
Comprehensive Standard 3.10.2
Comprehensive Standard 3.10.4
Operating Budget 2006-2007
Operating Budget 2007-2008


Last Updated: 09/08/2008