Kamehameha Releases Annual Report for 2000 - 2001

January 9, 2002

Contributed by Kekoa Paulsen

Education spending up by $73 million
Overall endowment earning at 4.8 percent of market value
Key organizational restructuring milestones met

EDUCATION

- KS regular session enrollment ñ pre-k through 12 ñ reached 4,474 (up 117 from FY 99-00).
- The National Association for the Education of Young Children (NAEYC) has accredited 20 KS preschool sites ñ 52 KS Early Childhood classrooms accounting for more than one-third of all individually accredited NAEYC preschool programs in Hawaiëi.
- KS Summer Programs enrollment reached an all-time high of 7,928 (up 1,997 from FY 99-00):
a) Kapalama Campus programs ñ 5,003
b) KS/DOE partner programs ñ 2,607
c) Special Collaboration summer programs ñ 318
- KS broke ground on two new Early Childhood Education sites -- Waimea, Hawaiëi and Paukukalo, Maui --scheduled to open in 2002.

ENDOWMENT & SPENDING

- Endowment achieved a 4.8 percent return, significantly outperforming two of its three benchmarks. The annualized total return for two years ended 6/30/01 was 9.6 percent. (p. 37)
- In accordance with KS Spending Policy, annual trust distributions from the endowment to support educational programs are targeted at 4 percent of the five-year average market value of the endowment. In FY 00-01, trust spending totaled approximately $206 million ñ a $73 million increase over the prior year ñ representing 4.1 percent of the five-year average market value of the Endowment. This figure is compared with $133 million or 2.8 percent of the five-year average for the previous year ended June 30, 2000. (page 38).
- Distributions to campus-based programs - $78.2 million
- Financial aid and post-high scholarships - $22.1 million
- Extension, Early Education and other education programs - $24.8 million.
- Capital and major repair projects for new and expanding existing programs ñ $53.9 million
- Operating reserve of $35.4 million ñ approved by the Probate Court in May 2001 ñ to ensure readily available assets for educational programs.
- KS received $8.4 million in tuition, fees and other educational income.

ADMINISTRATIVE/ORGANIZATIONAL

- Completion of Kamehameha Schools Strategic Plan 2000-2001 and its September 28, 2000 adoption;
- Installation of permanent trustees and completion of a structural reorganization into a CEO-based management structure;
- Completion of the second phase of KS Five-year Strategic Implementation Plan, that set out the following goals:
1. Maintain the excellence of current programs;
2. Extend reach in early childhood education (0-four-year-olds) to target one-third of the eligible population ñ approximately 10,000 students;
3. Extend reach in kindergarten-12th grade education through new collaborations with the DOE to target 1,000 new students;
4. Extend career awareness opportunities to target 1,350 options;
5. Expand lifelong educational options through Extension Education targeting 4,200 students;
6. Develop eco-cultural collaborations targeting 8,200 participants;
7. Establish a database to extend our reach and support families;
8. Develop and reallocate resources to support expanded educational reach; and,
9. Collaborate with others to support the preservation and perpetuation of ëIke Hawaiëi.

EXTENDING THE LEGACY

- Founding Ke Ali'i Pauahi Foundation (KAPF), a tax-exempt support organization to KS created to develop new and diverse sources of income to provide for the increasing educational needs of people of Hawaiian ancestry through proactive fund-raising, the administration of pre-kindergarten through post-high financial aid and scholarships and post-high counseling services.

OTHER HIGHLIGHTS

- Maintaining emphasis on two-way communication with stakeholders;
- Rededicating this institution to the cultivation, perpetuation and practice of 'Ike Hawai'i ñ Hawaiian culture, values, history, language, oral traditions, literature and care for significant cultural and historical places.