Troy University
SACS Reaffirmation of Accreditation
3.10.1 The institution’s recent financial history demonstrates financial stability. (Financial stability)
X Compliance   Partial Compliance   Non-Compliance


Troy University has a financially stable operation and is in compliance with this comprehensive standard. Troy University considers its operation to be financially sound and stable for the following reasons:

  • The resources from tuition and associated activities are sufficient to support the University’s mission of providing and maintaining high quality academic and co-curricular programs, and
  • These resources are sufficient for maintaining and developing the physical infrastructure that supports the programs required to further the mission of the University, and
  • These resources are complemented by donations from financial campaigns and funds generated by the Troy University Foundation in quantities sufficient to substantially assist in covering new academic programs, infrastructure and financial aid requirements.

As is shown in Table 1, this stability is reflected in an increase of income before other revenue, expenses, gains and losses from fiscal year 2002 to 2006. This increase is from $8.8 million in 2002 to $20.4 million in 2006, a 232 percent increase. In addition, ending net assets have increased from $83.5 million in 2002 to $149.6 million in 2006, a 79.2 percent increase.

Schedule of Net Assets and Changes in Net Assets

Basis of Determining 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.

Schedule of Revenues by Source

Strong Increases in Student Enrollment - Tuition revenue has increased by $44.4 million (74.1 percent) from fiscal year 2002 to 2006. 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 was 11,720, calculated based upon the Alabama Commission on Higher Education (ACHE) FTE formula. During the fall of 2006, Troy’s reported FTE count was 17,086, showing a 46 percent increase in full-time student enrollments.

Undergraduate and Graduate FTEs

These increases in new student admissions did not come at the expense of admissions standards. Table 4 below displays the average ACT test scores for students accepted into Troy University over the past eight years. The admitting ACT scores in 2006 are comparable to the previous seven years admission exams score summaries. Troy’s admission ACT scores are comparable to the national average ACT score.

Troy University Freshman Enrollment (Troy Campus)

In the last five years, the financial stability of Troy University has been based on a constant increase in income, the development of programs designed to achieve greater productivity in resource use, and adequate financial planning that supports strategic decision making and implementation. In addition, Troy University has received adequate funding from its Foundation to make sizeable contributions to scholarship and physical plant improvements. The following sections detail the main factors that have allowed Troy to maintain sufficient financial stability to supports its mission.

Enrollment and revenue growth

During the period of 2002 to 2006, Troy University has experienced an annual increase in revenue of 12.1 percent. This revenue growth is most prevalent in three areas:

  1. student tuition and fees,
  2. federal grants and contracts, and
  3. state appropriations (See Table 2).

The portion of the increase in student tuition and fees is the result of growth in enrollment. From 2001 to 2006, undergraduate and graduate full time equivalent (FTE) students increased by 45.8 percent from 11,720 full time equivalent students in 2001 to 17,086 full time equivalent students in 2006.

In addition to enrollment growth, tuition and fees charged individual students increased substantially. This increase was directly correlated with the Troy’s state appropriations being stagnant during the early part of the decade and the cost of higher education (supplies, utilities, health care costs, etc.) continuing to increase. The semester tuition for a full time, in-state resident, undergraduate student was $1,450 during the fall semester of 1999 at Troy University. In 2006, the fall semester tuition for that same student was $2,160, which is a 49 percent increase. Even with this increase, the cost of education at Troy University is still on par with that of peer institutions (see Table 5). Tuition and fee revenue increased 74.1 percent from fiscal 2002 ($59.9 million) to fiscal year 2006 ($104.4 million) based on increasing costs and the stagnant nature of state appropriations.

Comparison of Tuition at Troy University

In addition, revenue received from federal grants and contracts has increased dramatically (121 percent) from fiscal year 2002 ($12.9 million) to 2006 ($28.5 million.) This growth is a result a significant increase in enrollment that has increased Pell and Supplemental Education Opportunity Grants (SEOG) received from students. A second factor for the increase is the significant growth in the number of federally funded sponsored programs.

Recently, the University has experienced an increase in state appropriations. During fiscal years 2005 and 2006, increased state appropriations also contributed to the University’s revenue growth. State appropriations during fiscal 2002 were $36 million and did not change during fiscal years 2003 and 2004. However, during 2005, state appropriations increased more than one million dollars to $37.1 million. The increase from 2005 to 2006 was far more substantial when state appropriations increased another $6.4 million to $43.5 million during fiscal year 2006. This is a $7.5 million increase over fiscal year 2002 (21 percent).

Debt servicing

Troy University has done a superb job managing its debt service. Table 6 highlights that fact that the total outstanding bond, notes and capital lease debt has increased by $10.1 million from fiscal 2000 ($39.5 million) to fiscal 2006 ($49.6 million) or 26 percent. During the same time period, the full time equivalent (FTE) students for Troy University increased by 5,744, representing a 51 percent increase (11,342 in 2000 to 17,086 in 2006). The University’s outstanding debt per FTE ratio dropped by 17 percent from $3.48 per FTE in 2000 to $2.90 per FTE in 2006. Troy’s primary use of the debt financing was to support the construction of additional classroom space at all four Troy University campuses in Alabama. Funds raised through debt financing were also used to renovate and expand dormitory capacity at the Troy campus. Lastly, the seating capacity at the football stadium increased with bond proceeds generated between 2000 and 2006. Thus, the University’s use of debt financing was the result of meeting the increasing needs of an expanding student body.

Schedule of Ratios of Outstanding Debt

Additional detail on Troy University's long term debt is included in this Debt Service Requirements file.


The Troy University Foundation exists to provide a funding cushion for unexpected developments and to prepare for possible future increases in spending and expense levels. A complete summary of the Foundation's portfolio for the past seven years is included in the attached Troy University Foundation Endowment Summary. Policies for the spending rate of the endowment, endowment management policy, and asset allocations are linked here as Endowment Policies.


Troy University is financially stable and is in full compliance with this comprehensive standard.


Supporting Documentation Location
Debt Service Requirements
Endowment Policies
Troy University Foundation Endowment Summary


Last Updated: 08/19/2008