I am pleased to report the results of operations of Far Eastern University, Inc. for the fiscal year 2005-2006.
Despite the country's prevailing economic difficulties adversely affecting many institutions, judicious management resulted in our company's positive financial results permitting us to pay cash dividends in June 2005, and in January 2006. Moreover, the Board of Trustees approved in March 2006 a 50% stock dividend, which is subject to the confirmation of stockholders at the annual meeting on August 26, 2006 .
The success of operations may be due to the improved image of the university in the field of education. Enrollment increased by 7% at a time when the enrollment in most schools in the university belt decreased. FEU students bested other schools in many competitions locally and abroad, including Harvard University . Graduates' passing rates in government board examinations in Accountancy, Law, secondary Education, Nursing and Architecture improved and are above the national averages. The Institute of Accounts, Business and Finance garnered the first and sixteenth places in the Certified Public Accountants examination and the Institute of Law had a tenth placer in the bar examination.
This last school year, our Commerce and Liberal Arts programs were granted Level III accreditation by the Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA), while our Nursing program continues to merit a Level II accreditation granted by the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU).
In sports, we enjoyed a banner year. Four of our varsity teams, namely, the Men's Basketball, Men's Volleyball, Men's Track and Field and Women's Track and Field teams, won 2005 UAAP championships. Our junior basketball team from FEU FERN College placed fourth during this, their first year to play in the league.
Improvements in the offices and in the campus, aside from the completion of the new Technology Building , were numerous. Most noticeable were additional open-air reading areas for the students, seating alcoves in the enlarged and enhanced gardens, and the pavement of the campus paths and driveways. Additional computer laboratories and a virtual laboratory for the Institute of Nursing were constructed. The Dr. Nicanor Reyes Memorabilia Room was redesigned in order to graphically depict the legacies of the founders, administrators and students of FEU. Full automation of our budgeting and accounting systems is about to be completed.
We have maintained cordial and harmonious relations with our academic and non-academic personnel. The improvement in the teaching performance of our faculty is evident in the increase of teaching excellence awardees in the past four years. We continue to make available to all our personnel scholarship grants and financial assistance for their professional advancement.
Our sister school, the FEU East Asia College , which offers engineering and computer courses, has been attracting students. Enrollment in the last three years increased by an average of 32% a year. It has maintained its high standards which qualified it to be a Center of Development for Excellence in IT Education in February 2000. Its first graduates of Electronics Communications Engineering posted a 56.25% passing rate in the government examinations as against the national passing rate of 33.64% while its first graduates of Civil Engineering had an impressive 71.4% passing rate, well above the national passing rate of 35.5%.
On behalf of the Board of Trustees, I wish to thank the administrative staff, faculty, students and alumni for helping us bring our university to new heights. To you, our stockholders, our heartfelt gratitude for your trust, confidence and support. Together, we pledge to do our best for FEU.
LOURDES R. MONTINOLA
Chair
Board of Trustees
FAR EASTERN UNIVERSITY, INC.
PARENT COMPANY BALANCE SHEETS
March 31
2005
(As Restated -
2006
Notes 2 and 20)
ASSETS
Current Assets
Cash and cash equivalents (Notes 4 and 12)
P845,623,499
P508,435,324
Available for sale investments - net (Notes 2, 3 and 5)
339,046,891
363,095,497
Receivables - net (Notes 3 and 6)
166,980,803
125,140,749
Other current asset
6,180,140
7,814,883
Total Current Assets
1,357,831,333
1,004,486,453
Noncurrent Assets
Deferred tax assets - net (Notes 3 and 15)
4,389,761
2,700,501
Investments and advances - net (Notes 3, 7 and 8)
153,941,889
156,280,819
Investment property - net (Notes 3 and 9)
163,713,760
173,751,931
Property and equipment - net (Notes 3 and 10)
565,634,619
394,087,005
Other assets (Note 2)
14,967,205
16,660,925
Total Noncurrent Assets
902,647,234
743,481,181
P2,260,478,567
P1,747,967,634
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and other current liabilities (Note 11)
P234,018,900
P175,487,090
Deferred income
-
27,347,214
Income tax payable
37,802,912
26,171,006
Total Current Liabilities
271,821,812
229,005,310
Noncurrent Liability
Trust funds (Note 12)
85,822,679
67,395,049
Total Liabilities
357,644,491
296,400,359
Stockholders' Equity
Capital stock
470,847,300
470,847,300
Net unrealized loss on available for sale investments (Notes 3 and 5)
(5,536,147)
-
Appropriated retained earnings (Note 17)
697,161,414
437,161,414
Unappropriated retained earnings (Notes 2, 16 and 20)
