Concordia University and Concordia Foundation Nebraska

41 

Loading....

Loading....

Loading....

Loading....

Loading....

Full text

(1)
(2)

Contents

Independent Accountants’ Report on Consolidated Financial

Statements ... 1

Consolidated Financial Statements Statements of Financial Position ... 2

Statements of Activities ... 3

Statements of Cash Flows ... 4

Notes to Consolidated Financial Statements ... 6

Independent Accountants’ Report on Supplementary Information ... 31

Supplementary Information Consolidating Statements of Financial Position ... 32

Consolidating Statements of Activities - Unrestricted ... 33

Consolidating Statements of Activities - Temporarily Restricted ... 34

(3)

Board of Regents

Concordia University and Concordia Foundation Nebraska Seward, Nebraska

We have audited the accompanying consolidated statements of financial position of Concordia University, Nebraska, and its affiliate, Concordia Foundation Nebraska, as of June 30, 2012 and 2011, and the related consolidated statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Concordia University, Nebraska, and its affiliate, Concordia Foundation Nebraska, as of June 30, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

(4)

2012 2011

Assets

Cash and cash equivalents $ 603,148 $ 1,441,453 Receivables

Student accounts, net of allowance; 2012 - $46,000, 2011 - $44,867 408,052 310,405 Contributions, net of allowance; 2012 - $66,127, 2011 - $63,119 (Note 3) 1,648,903 1,206,078 Bequests 688,995 Other 102,929 95,350 Prepaid expenses and other assets 365,729 448,893 Student loans receivable - Perkins loan program, net of allowance;

2012 - $96,670; 2011 - $70,350 1,063,832 1,084,815 Long-term investments (Note 4) 35,131,570 34,034,161 Deferred debt acquisition costs 427,142 444,285 Funds on deposit with bond trustee (Note 12) 1,372,505 1,372,505 Cash surrender value of life insurance policies (Note 5) 622,580 592,359 Beneficial interest in split interest agreements (Note 6) 2,179,010 2,227,518 Construction in progress (Note 8) 4,151,283 1,439,006 Land, buildings and equipment, net (Note 9) 48,565,854 48,754,708 Beneficial interest in perpetual funds (Note 7) 2,122,279 2,175,180

(5)

Liabilities

Accounts payable and other liabilities $ 3,142,562 $ 2,485,496 Line of credit (Note 10) 640,711 -Student housing deposits 376,424 490,352 Deferred revenue 599,823 560,590 Asset retirement obligation 626,036 729,446 Capital lease obligations (Note 11) 554,536 688,988 Long-term debt (Note 12) 21,560,000 21,950,000 Government grants refundable - Perkins loan program 980,252 1,013,937

Total liabilities 28,480,344 27,918,809

Net Assets

Unrestricted net assets, designated 1,863,837 1,559,345 Net investment in property and equipment 34,123,155 28,823,536 Unrestricted net assets, undesignated (18,741,952) (13,952,352)

Total unrestricted net assets 17,245,040 16,430,529

Temporarily restricted net assets 20,340,162 20,146,299 Permanently restricted net assets 33,388,265 31,131,079

Total net assets 70,973,467 67,707,907

(6)

2012

Temporarily Permanently

Unrestricted Restricted Restricted Total

Revenues, Gains and Other Support

Tuition and fees $ 30,096,281 $ - $ - $ 30,096,281 Less: Scholarships and grants (13,264,290) - - (13,264,290) Net tuition and fees 16,831,991 - - 16,831,991 Concordia University System (Note 2) 11,000 50,491 - 61,491 Government grants - student aid - 413,725 - 413,725 Contributions 1,484,564 3,091,166 2,353,050 6,928,780 Interest income - cash and cash equivalents 29,635 - - 29,635 Investment income 190,372 1,522,569 4,097 1,717,038 Sales and services of auxiliary expenses 5,734,430 - - 5,734,430 Other income 914,542 - - 914,542 Change in beneficial interest

in split-interest agreements - (3,691) (50,984) (54,675) Change in beneficial interest

in perpetual funds - 4,447 7,411 11,858 Gain on sale of property 16,296 - - 16,296 Net realized and unrealized gains

(losses) on investments (69,221) (1,132,860) (56,388) (1,258,469) 25,143,609

3,945,847 2,257,186 31,346,642 Net assets released from restriction 3,751,984 (3,751,984) -

-Total revenues, gains and other support 28,895,593 193,863 2,257,186 31,346,642 Expenses and Losses

Educational and general Academic programs

Instruction - divisional 8,614,593 - - 8,614,593 Other instructional programs 106,299 - - 106,299 Support programs

Academic support 2,011,255 - - 2,011,255 Student services 6,764,143 - - 6,764,143 Institutional support 5,431,070 - - 5,431,070 Fund-raising 1,392,044 - - 1,392,044 Auxiliary enterprises 3,761,678 - - 3,761,678 Total expenses and losses 28,081,082 - - 28,081,082 Change in Net Assets 814,511 193,863 2,257,186 3,265,560 Net Assets, Beginning of Year 16,430,529 20,146,299 31,131,079 67,707,907 Net Assets, End of Year $ 17,245,040 $ 20,340,162 $ 33,388,265 $ 70,973,467

(7)

28,161,677

$ $ - $ - $ 28,161,677 (12,081,466)

- - (12,081,466) 16,080,211

- - 16,080,211 40,000

1,091 - 41,091

429,362 - 429,362 1,550,951

2,286,521 1,528,136 5,365,608 28,513

- - 28,513 152,894

1,267,829 3,735 1,424,458 5,377,603

- - 5,377,603 922,422

- - 922,422

124,885 67,247 192,132

38,460 (200,525) (162,065) 188,868

- - 188,868

1,234,533

3,702,230 270,839 5,207,602 25,575,995

7,850,378 1,669,432 35,095,805 2,891,749

(2,891,749) -

-28,467,744

4,958,629 1,669,432 35,095,805

8,227,567

- - 8,227,567 90,328

- - 90,328

1,974,619

- - 1,974,619 6,642,678

- - 6,642,678 5,236,771

- - 5,236,771 1,399,285

- - 1,399,285 3,588,036

- - 3,588,036

27,159,284

- - 27,159,284

1,308,460

4,958,629 1,669,432 7,936,521

15,122,069

15,187,670 29,461,647 59,771,386

16,430,529

(8)

2012 2011 Operating Activities

Change in net assets $ 3,265,560 $ 7,936,521 Items not requiring (providing) operating activities cash flows

Depreciation and amortization 2,659,920 2,522,447 Change in asset retirement obligation (103,410) 245,343 Donated stocks (70,347) (222,047) Change in value of beneficial interest in split-interest agreements 54,675 (192,132) Change in value of beneficial interest in perpetual funds (11,858) 162,065 Gain on sale of property (16,296) (188,868) Net realized and unrealized losses (gains) on investments 1,258,469 (5,207,602) Amortization of bond issuance costs 17,143 17,142 Contributions restricted for investment in permanent endowments (2,353,050) (1,528,136) Contributions restricted for buildings and equipment (1,357,424) (853,161) Investment income restricted for reinvestment in permanent endowments (4,097) (3,735) Changes in

Student accounts receivable (97,647) 200,947 Contributions receivable, net 77,508 (261,239) Bequests receivable (248,500) -Other receivables (7,579) (58,582) Prepaid expenses and other assets 83,164 (76,959) Cash surrender value of life insurance policies (30,221) (39,897) Beneficial interest in split-interest agreements (6,167) 261,224 Beneficial interest in perpetual funds 64,759 53,765 Accounts payable and other liabilities 43,263 13,397 Student housing deposits (113,928) 65,685 Deferred revenue 39,233 108,605

Net cash provided by operating activities 3,143,170 2,954,783

Investing Activities

Student loans receivable - Perkins loan program

Principal repayments 180,920 205,029 Advances (191,900) (125,950) Net change in government grants refundable - Perkins loan program (1,722) 3,022 Proceeds from sales of land, buildings and equipment 16,296 191,708 Purchases of land, buildings and equipment (4,569,540) (2,232,377) Proceeds from sale of long-term investments 14,895,747 8,942,674 Purchases of long-term investments (17,181,278) (9,595,880)

(9)

Financing Activities

Proceeds from contributions received restricted for

Investment in permanent endowments $ 1,528,407 $ 1,423,200 Acquisition of buildings and equipment 1,221,239 1,319,292 Investment income restricted for reinvestment in permanent endowments 4,097 3,735 Net change in line of credit 640,711 (1,788,866) Principal payments on capital lease obligations (134,452) (60,864) Principal payments on long-term debt (390,000) (370,000)

Net cash provided by financing activities 2,870,002 526,497

Increase (Decrease) in Cash and Cash Equivalents (838,305) 869,506

Cash and Cash Equivalents, Beginning of Year 1,441,453 571,947

Cash and Cash Equivalents, End of Year $ 603,148 $ 1,441,453

Supplemental Cash Flows Information

Interest paid $ 1,120,938 $ 1,161,432

Federal Perkins loan program cancellations & assignments $ 5,643 $ 8,443

Federal Perkins loan program bad debt provision (credit) $ 26,320 $ (37,018)

(10)

Note 1:

Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Concordia University (the University), a Nebraska not-for-profit corporation, is a private, Lutheran liberal arts educational institution operated under the auspices of The Lutheran Church-Missouri Synod (the Synod), which establishes broad operating and financial policies through Concordia University System (CUS). The University’s Board of Regents is responsible for the management of the University. The LCMS Foundation, an affiliate of the Synod, holds and administers various trusts and investments for the University.

Revenues are derived principally from the University’s educational programs in the form of tuition and fees. Auxiliary enterprise revenues include income primarily from student housing, food services, conventions and conferences, and publications. Accordingly, the auxiliary enterprise expenses include all costs incurred in providing these services.

Concordia Foundation Nebraska (the Foundation) is a Nebraska not-for-profit organization formed to promote the University through solicitation of funds to encourage various activities of the University and to administer gifts and bequests given to it by donors for purposes of supporting the educational and religious objectives of the University. The Foundation is administered by a Board of Directors, which is approved by the Board of Regents of the University.

Principles of Consolidation

The consolidated financial statements include the accounts of the University and the Foundation. All material transactions and balances between the University and the Foundation have been eliminated in the consolidated financial statements.

Basis of Presentation

The consolidated financial statements, which are presented on the accrual basis of accounting, have been prepared to focus on the University as a whole and to present balances and transactions according to the existence or absence of donor-imposed restrictions. This has been accomplished by classification of net assets and transactions into three classes as follows:

Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the University. Generally, the donors of these assets permit the University to use all or part of the income earned on related investments for general or specific purposes.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that will be met by action of the University and/or the passage of time.

(11)

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The University considers all highly liquid investments, except for those held for long-term investment, with a maturity of three months or less to be cash equivalents. Cash and cash equivalents do not include investments the University has both the ability and intent to hold long-term. At June 30, 2012 and 2011, cash and cash equivalents included an account with the Lutheran Church Extension Fund which had a balance of $259,642 and $598,542 at June 30, 2012 and 2011, respectively.

Pursuant to legislation enacted in 2010, the FDIC will fully insure all non-interest bearing transaction accounts beginning December 31, 2010 through December 31, 2012, at all FDIC-insured institutions.

Effective July 21, 2010, the FDIC’s insurance limits were permanently increased to $250,000 for interest-bearing cash accounts. At June 30, 2012, the University’s interest-bearing cash accounts exceeded federally insured limits by $494,118.

Student Accounts and Loans Receivable

Student accounts receivable are carried at the unpaid balance of the original amount billed to students and student loans receivable are carried at the amount of unpaid principal. Both receivables are reported net of an allowance for doubtful accounts. Management determined the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Student accounts and loans receivable are written-off when deemed uncollectible. Recoveries of student accounts and loans receivable previously written-off are recorded when received. Receivables are generally unsecured.

(12)

Note 1:

Nature of Operations and Summary of Significant Accounting Policies -

Continued

Student Accounts and Loans Receivable - Continued

After a student is no longer enrolled in an institution of higher education and after the grace period, interest is charged on Perkins student loans receivable and is recognized as it is collected. Perkins student loans receivable are considered to be past due if a payment is not made by the payment due date. Late charges are assessed when a loan becomes 30 days or more past due and are recognized when collected. The Perkins Loan Program receivables may be assigned to the U.S. Department of Education. Students may be granted a deferment, forbearance or cancellation of their student loan receivable based on eligibility requirements defined by the U.S. Department of Education.

Bequests Receivable

The University recognizes bequests receivable when the probate court declares the will valid and the fair value of the University’s interest in the estate is measurable.

Contributions Receivable

Unconditional promises to give that are expected to be collected within one year are recognized as support and recorded as a receivable at their net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows, discounted at an appropriate interest rate.

Conditional gifts depend on the occurrence of a specified future and uncertain event to bind the potential donor and are recognized as assets and revenue when the conditions are substantially met and the gift becomes unconditional.

Investments and Investment Return

Investments in equity securities having a readily determinable fair value and in all debt securities are carried at fair value. The fair value of alternative investments has been estimated using the net asset value per share of the investments. Other investments are valued at the lower of cost (or fair value at time of donation, if acquired by contribution) or fair value. Investment return includes dividend, interest and other investment income; realized and unrealized gains and losses on investments carried at fair value; and realized gains and losses on other investments.

Investment return that is initially restricted by donor stipulation and for which the restriction will be satisfied in the same year is recorded in temporarily restricted net assets and then released from restriction. Other investment return is reflected in the statements of activities as unrestricted, temporarily restricted or permanently restricted based upon the existence and nature of any donor or legally imposed restrictions.

(13)

Investments and Investment Return - Continued

The University maintains pooled investment accounts for its endowments. Investment income and realized and unrealized gains and losses from securities in the pooled investment accounts are allocated monthly to the individual endowments based on the relationship of the fair value of the interest of each endowment to the total fair value of the pooled investments accounts, as adjusted for additions to or deductions from those accounts.

Land, Buildings and Equipment

Land, buildings, improvements and equipment are recorded at cost at the date of acquisition or at fair value at the date of gift, less accumulated depreciation. Normal repair and maintenance expenses are charged to operations as incurred. The University capitalizes land, buildings and equipment expenditures in excess of $5,000. Title to land and buildings is principally in the name of the University or Foundation. Assets under capital lease obligations and leasehold improvements are depreciated over the shorter of the lease term or their respective estimated useful lives.

Buildings, improvements and equipment are depreciated using the straight-line method over the following estimated useful lives:

Buildings 20 to 60 years

Building and other improvements 3 to 40 years

Equipment 3 to 10 years

Library materials 20 years

Long-lived Asset Impairment

The University evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended June 30, 2012 and 2011.

Deferred Revenue

Certain revenue related to education programs is deferred and recognized as revenue in the same period expenses are recognized. Students are generally billed for courses prior to the start of the course.

(14)

Note 1:

Nature of Operations and Summary of Significant Accounting Policies -

Continued

Asset Retirement Obligations

Asset retirement obligations are estimated costs and obligations associated with the retirement of long-lived assets. These liabilities were initially recorded at fair value with a respective increase to the related long-lived assets. Asset retirement costs are subsequently accreted over the useful lives of the related assets.

Government Grants Refundable – Perkins Loan Program

Funds provided by the United States Government under the Federal Perkins Loan Program are loaned to qualified students and may be reloaned after collections. These funds are ultimately refundable to the government and are included as liabilities in the statements of financial position.

Contributions

Gifts of cash and other assets received without donor stipulations are reported as unrestricted revenue and net assets. Gifts received with a donor stipulation that limits their use are reported as temporarily or permanently restricted revenue and net assets. When a donor stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Gifts and investment income that are originally restricted by the donor and for which the restriction is met in the same time period are recorded as temporarily restricted and then released from restriction.

Gifts of land, buildings, equipment and other long-lived assets are reported as unrestricted revenue and net assets unless explicit donor stipulations specify how such assets must be used, in which case the gifts are reported as temporarily or permanently restricted revenue and net assets. Gifts received for construction of new buildings and building remodeling are released over the life of the project upon it being placed in service.

Contributed Services

Contributed services are recognized as revenue at their estimated fair value only when the services received create or enhance nonfinancial assets or require specialized skills possessed by the individuals providing the service and the service would typically need to be purchased if not donated.

(15)

Grants to Specified Students

Amounts received under federal grant programs designated for the benefit of specified students are considered agency transactions and, therefore, are not reflected as revenues and expenses of the University. The amounts of such grants were $1,309,717 and $1,556,958 respectively, for the years ended June 30, 2012 and 2011.

Income Tax Status

The University is exempt from income taxes under Section 501 of the Internal Revenue Code and a similar provision of state law. However, the University is subject to federal income tax on any unrelated business taxable income.

The University files tax returns in the U.S. federal jurisdiction. With a few exceptions, the University is no longer subject to U.S. federal examinations by tax authorities for years before 2008.

Advertising Expenses

Advertising expenses approximated $148,600 and $166,400 for the years ended June 30, 2012 and 2011, respectively. Advertising costs are expensed when incurred.

Functional Allocation of Expenses

The costs of supporting the various programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain expenses have been allocated among the programs and supporting services benefited.

Transfers Between Fair Value Hierarchy Levels

Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

Note 2:

Concordia University System - Related Party

The University did not have any funds on deposit with CUS at June 30, 2012 or 2011. However, during 2012 and 2011, funds were held in an account which earned interest on the daily balance in the account. During the years ended June 30, 2012 and 2011, interest earned on this account totaled $11,669 and $17,376, respectively, which is included in the consolidated statements of activities as interest income on cash and cash equivalents.

(16)

Note 2:

Concordia University System - Related Party - Continued

The University also has a line of credit with CUS. See Note 10 for additional information regarding this line of credit.

CUS contributes to the University’s support ($61,491 in 2012 and $41,091 in 2011) in the form of an operating subsidy and specific grants. CUS, through a related Foundation, also administers the majority of split interest agreements and perpetual funds held for the benefit of the University and the Foundation.

Note 3:

Contributions Receivable

Contributions receivable include the following unconditional promises to give at June 30:

Unrestricted

Temporarily Restricted

Permanently

Restricted Total Due within one year $ 44,372 $ 369,827 $ 179,747 $ 593,946 Due in one to five years 91,345 695,405 420,911 1,207,661 Due in more than five years - 29,250 1,900 31,150

135,717

1,094,482 602,558 1,832,757 Less

Allowance for uncollectible contributions (12,565) (32,257) (21,305) (66,127) Unamortized discount (7,870) (64,955) (44,902) (117,727)

115,282

$ $ 997,270 $ 536,351 $ 1,648,903 2012 Unrestricted Temporarily Restricted Permanently Restricted Total Due within one year $ 30,409 $ 786,370 $ 51,600 $ 868,379 Due in one to five years 3,017 302,971 119,130 425,118 Due in more than five years - 13,200 2,500 15,700

33,426

1,102,541 173,230 1,309,197 Less

Allowance for uncollectible contributions (19,229) (34,614) (9,276) (63,119) Unamortized discount (147) (28,102) (11,751) (40,000)

14,050

$ $ 1,039,825 $ 152,203 $ 1,206,078 2011

(17)

2012 2011

Mutual funds

Fixed income $ 9,360,81911,245,161 $

Large/Mid cap 1,385,014 1,388,283

Small cap 345,294 1,789,791

International equities 4,333,630 6,604,246 Real estate investment trusts 2,193,662 2,031,668

Commodities 2,770,556 3,427,172

Equities 1,712,656 1,765,381

Exchange traded funds 3,724,281 3,867,327

Money market fund 17,525 1,179

Funds of hedge funds 6,942,271 3,291,865

LCMS Foundation

Moderate balanced fund 349,366 381,153

Annuity contracts 103,125 103,125

Other 9,029 22,152

35,131,570

$ 34,034,161$

Total investment return is comprised of the following:

2012 2011

Interest and dividend income $ 1,746,673 $ 1,452,971 Realized gains (losses) 1,090,602 (96,331) Unrealized gains (losses) (2,225,947) 5,416,327

Investment expenses (123,124) (112,394)

488,204

$ $ 6,660,573 Net realized and unrealized gains (losses) on investments reflected in the consolidated statements of activities are shown net of related investment management fees.

(18)

Note 4:

Long-Term Investments - Continued

Alternative Investments

The University’s alternative investments are in two funds which employ the “fund of hedge funds” approach. The fair value of the investments of $6,942,271 and $3,291,865 at June 30, 2012 and 2011, respectively, has been estimated by multiplying the University’s ownership interest in each respective fund by the net asset value (NAV) of each fund. The funds’ investment objectives are to generate a superior absolute and risk-adjusted rate of return, with low performance volatility and low correlation with global equity and fixed-income markets, over a full market cycle; and to preserve capital during challenging market environments. The funds pursue multiple strategies to diversify risks and reduce volatility. On a quarterly basis with 65 to 70 days prior notification, the University may redeem all or any portion of its capital account at each fund’s NAV, subject to the redemption provisions of underlying investment funds in which the funds are invested and to audit contingency and other customary reserves. At June 30, 2012, the University has no unfunded commitments to these investments.

Note 5:

Cash Surrender Value of Life Insurance Policies

The University is designated as both the owner and beneficiary of flexible premium adjustable life insurance policies which were received as donations. At June 30, 2012 and 2011, the insurance coverage aggregated $2,519,698 and $2,543,727, respectively, and the cash surrender value totaled $622,580 and $592,359, respectively. Premium payments are required to be made by the donor to continue coverage to the maturity dates.

Note 6:

Beneficial Interest in Split Interest Agreements

Beneficial interest in split interest agreements consist primarily of irrevocable charitable remainder trusts and charitable gift annuities. The assets associated with such agreements are held by the LCMS Foundation and Cattle National Bank and Trust Co., third-party trustees. Contributions are recognized at the dates the agreements become irrevocable to the University and are recorded at the present value of the estimated future benefits to be received when the assets are distributed to the University. The valuations of the agreements held by LCMS are calculated by the LCMS Foundation. The valuation of the agreement held at Cattle National Bank and Trust Co. is calculated by the University. The agreements are revalued annually, and any resulting actuarial gain or loss is reflected in the consolidated statements of activities as a change in beneficial interest in split-interest agreements.

(19)

party trustee, and consist of irrevocable trusts and endowments from which the University is to receive the income in perpetuity. The principal is held in trust by the LCMS Foundation and will never revert to the University. The perpetual stream of income is viewed by the University as promises to give by the individuals who established the trusts and has been recorded at the fair value of the trusts at June 30, 2012 and 2011, which closely approximates the estimated net present value of the perpetual income stream.

Given the nature of the promises, the University recorded these contributions as permanently restricted net assets. Income received is recorded as either unrestricted or temporarily restricted activity based on the presence or absence of donor restrictions. Increases or decreases in the fair value of the trust assets are recorded in the consolidated statements of activities as a change in beneficial interest in perpetual funds.

Note 8:

Construction in Progress

At June 30, 2012, the following projects were in progress:

Estimated Total

Cost Cost to Date Funding Plan

Wellness Center and PE

Renovation - Phase 3 $ 10,098,626 $ 2,627,925 Gifts David Hall renovation 1,125,525 709,962 Operations Computer equipment/software 350,395 302,596 Operations Campus Center remodel 960,500 226,409 Operations Scoreboard 190,000 1,750 Gifts/Operations Building improvements 365,858 282,641 Operations

4,151,283 $

At June 30, 2011, the following projects were in progress: Wellness Center and PE

Renovation - Phase 3 $ 10,098,626 $ 292,675 Gifts David Hall renovation 849,000 533,450 Operations Computer equipment 636,650 309,450 Operations Campus Center remodel 358,800 176,655 Operations Building improvements 553,000 126,776 Gifts/Operations

1,439,006 $

(20)

Note 9:

Land, Buildings and Equipment

Land, buildings and equipment and the related accumulated depreciation amounts are as follows:

2012 2011

Land $ 940,972 $ 940,972

Buildings 63,103,223 61,657,356

Building and other improvements 6,299,548 6,425,396

Equipment 9,913,010 10,652,010

Library materials 1,588,908 1,605,857

81,845,661

81,281,591 Less accumulated depreciation 33,279,807 32,526,883

48,565,854

$ $ 48,754,708

Note 10: Line of Credit

The University has a $2,715,928 line of credit available for short-term cash flow purposes with CUS expiring June 30, 2013. At June 30, 2012, the outstanding borrowing under this agreement was $640,711. No amount was outstanding at June 30, 2011. Interest accrues at a variable rate which was 4.50% and 5.00% at June 30, 2012 and 2011, respectively, and is payable monthly. Amounts drawn on this line of credit must be repaid in full for a period of net less than 30 days beginning on or about September 15 and February 1.

Note 11: Capital Lease Obligations

The University is leasing a pipe organ over five years. In addition, as of June 30, 2011, the University was leasing various pianos under leases that were paid in full during 2012. The University is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases.

Equipment includes the following under capital leases at June 30:

2012 2011

Equipment $ 720,550 $ 841,391

Less accumulated depreciation (112,886) (126,873) 607,664

(21)

2012 2011

Capital lease obligations, at an implicit rate of 10.41%, payable in yearly installments of $7,959 through August

2016 and $10,173 through April 2017 $ - $ 78,011 Capital lease obligations, at an implicit rate of 7.79%,

payable in semi-annual installments of $54,572 and a

balloon payment of $447,894 in November 2014 554,536 610,977

$ 554,536 $ 688,988

At June 30, 2012, the University had the following minimum commitments by fiscal year for payment of rentals under the capital leases:

2013 $ 109,145

2014 109,145

2015 447,894

666,184

Less amount representing interest (111,648) Present value of future minimum lease payments $ 554,536

Note 12: Long-Term Debt

The University had the following long-term debt outstanding at June 30:

2012 2011

Nebraska Educational Finance Authority (NEFA)

(22)

Note 12: Long-Term Debt - Continued

During the year ended June 30, 2007, the University entered into an agreement with NEFA to issue $22,670,000 in revenue bonds (Series 2007). The bond proceeds were used to finance the construction of the HHPAC Facility and to pay off the NEFA Series 2005 bonds. Under the terms of the bond indenture, interest is payable semiannually on April and October 1 of each year. Coupon rates range from 4.25% to 5.00%. The principal portion is due annually on October 1 and the bonds are scheduled to mature on October 1, 2037. The bonds are secured by substantially all of the University’s unrestricted receipts, revenues and income, inclusive of CUS payments received. Bonds due on or after October 1, 2016 are subject to optional redemption on October 15, 2015 and on any date thereafter at par plus accrued interest to the date of redemption.

The bond indenture requires a debt service reserve fund. At both June 30, 2012 and 2011, funds set aside for future principal and interest payments on deposit with the bond trustee total $1,372,505. The agreement also requires that some restrictive and financial covenants be met, including a debt service coverage ratio of at least 1.15 or a liquidity ratio of not less than 0.35.

For the years ended June 30, 2012 and 2011, interest expense of $1,044,290 and $1,063,540, respectively, was included in the consolidated statements of activities as institutional support expense.

Future minimum principal payments at June 30, 2012, are as follows:

2013 $ 410,000

2014 430,000

2015 450,000

2016 470,000

2017 490,000

Thereafter 19,310,000

21,560,000 $

Note 13: Net Assets

Unrestricted Net Assets - Designated

For the years ended June 30, 2012 and 2011, the Board of Regents designated unrestricted net assets of $1,863,837 and $1,559,345, respectively, to be used for quasi-endowments for student financial aid purposes, general use and support programs.

(23)

Temporarily Restricted Net Assets

Temporarily restricted net assets at June 30 are available for the following purposes or periods:

2012 2011

Purpose Restrictions Academic programs

Instruction - divisional $ 121,130 $ 111,730

Other instructional programs 259,593 240,282 Support programs

Academic support 258,535 272,306

Student services 254,809 295,969

Institutional support 770,989 891,894

Auxiliary enterprises 153,095 81,656

Scholarship allowances (student aid) 4,381,159 5,045,456

Fixed asset acquisitions 12,531,096 11,939,554

18,730,406

18,878,847

Time Restrictions 1,609,756 1,267,452

20,340,162

$ 20,146,299$

Permanently Restricted Net Assets

Permanently restricted net assets at June 30 are restricted to:

2012 2011

Academic programs

Instruction - divisional $ 450,000 $ 250,000

Other instructional programs 223,284 203,227 Support programs

Academic support 788,488 783,388

Student services 529,795 521,295

Institutional support 590,413 499,572

Scholarship allowances (student aid) 29,909,212 27,976,524

Unrestricted operations 897,073 897,073

33,388,265

(24)

Note 13: Net Assets - Continued

Net Assets Released from Restrictions

Net assets were released from temporary donor restrictions during the years ended June 30, 2012 and 2011 by incurring expenses satisfying the restricted purposes or by occurrence of events specified by the donors as follows:

2012 2011

Purpose restrictions accomplished Academic programs

Instruction - divisional $ 104,542 $ 148,859

Support programs

Academic support 29,833 34,698

Student services 88,930 47,312

Institutional support 237,061 113,912

Auxiliary enterprises 8,963 27,426 Scholarship allowances (student aid) 2,346,201 1,974,132

Fixed asset acquisitions 791,897 364,343

3,607,427

2,710,682 Expiration of time restrictions 144,557 181,067

3,751,984

$ $ 2,891,749

Note 14: Endowment

The University’s endowment consists of approximately 350 individual funds established for a variety of purposes. The endowment includes both donor-restricted endowment funds and funds designated by the governing body to function as endowments (board-designated endowment funds). As required by accounting principles generally accepted in the United States of America (GAAP), net assets associated with endowment funds, including board-designated endowment funds, are classified and reported based on the existence or absence of donor-imposed restrictions. The University’s governing body has interpreted the State of Nebraska Prudent Management of Institutional Funds Act (SPMIFA) as requiring preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the University classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of donor-restricted endowment funds is

(25)

by the University in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, the University considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

1. Duration and preservation of the fund 2. Purposes of the University and the fund 3. General economic conditions

4. Possible effect of inflation and deflation

5. Expected total return from investment income and appreciation or depreciation of investments

6. Other resources of the University 7. Investment policies of the University

The composition of net assets by type of endowment fund at June 30, 2012 and 2011, was:

Temporarily Permanently

Unrestricted Restricted Restricted Total

Donor-restricted

endowment funds $ (21,921) $ 4,281,801 $ 30,434,193 $ 34,694,073 Board-designated

endowment funds 1,863,837 245,000 - 2,108,837 1,841,916

$ $ 4,526,801 $ 30,434,193 $ 36,802,910

2012

Temporarily Permanently

Unrestricted Restricted Restricted Total

Donor-restricted

endowment funds $ (17,601) $ 4,962,366 $ 28,119,266 $ 33,064,031 Board-designated

endowment funds 1,559,345 - - 1,559,345 1,541,744

$ $ 4,962,366 $ 28,119,266 $ 34,623,376

(26)

Note 14: Endowment - Continued

Changes in endowment net assets for the years ended June 30, 2012 and 2011, were:

Temporarily Permanently

Unrestricted Restricted Restricted Total

Endowment net assets, beginning

of year $ 1,541,744 $ 4,962,366 $ 28,119,266 $ 34,623,376 Investment return

Investment income 94,319 1,483,784 4,082 1,582,185 Net depreciation (61,693) (1,132,363) (56,388) (1,250,444)

Total investment

return 32,626 351,421 (52,306) 331,741 Contributions 263,883 320,000 2,367,233 2,951,116 Appropriations of

endowment assets

for expenditure (60,576) (1,106,986) - (1,167,562) Transfers 64,239 - - 64,239 Endowment net

assets, end of year $ 1,841,916 $ 4,526,801 $ 30,434,193 $ 36,802,910

(27)

Temporarily Permanently

Unrestricted Restricted Restricted Total

Endowment net assets, beginning

of year $ 240,867 $ 1,006,424 $ 26,196,729 $ 27,444,020 Investment return

Investment income 71,499 1,225,017 3,704 1,300,220 Net appreciation 1,185,637 3,710,991 270,839 5,167,467

Total investment

return 1,257,136 4,936,008 274,543 6,467,687 Contributions 48,377 20,025 1,320,010 1,388,412 Appropriations of

endowment assets

for expenditure (62,629) (1,000,091) - (1,062,720) Transfers 57,993 - 327,984 385,977 Endowment net

assets, end of year $ 1,541,744 $ 4,962,366 $ 28,119,266 $ 34,623,376

Amounts of donor-restricted endowment funds classified as permanently and temporarily restricted net assets at June 30, 2012 and 2011, consisted of:

2012 2011

30,434,193

$ $ 28,119,266

261,870

$ $ 195,757

4,019,931

4,766,609 4,281,801

$ $ 4,962,366 Permanently restricted net assets - portion of perpetual

endowment funds required to be retained permanently by explicit donor stipulation or SPMIFA

With purpose restrictions Temporarily restricted net assets

Term endowment funds

Portion of perpetual endowment funds subject to a time restriction under SPMIFA

(28)

Note 14:

Endowment - Continued

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level the University is required to retain as a fund of perpetual duration pursuant to donor stipulation or SPMIFA. In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets and aggregated $21,921 and $17,601 at June 30, 2012 and 2011, respectively. These deficiencies resulted from unfavorable market fluctuations that occurred shortly after investment of new permanently restricted contributions and continued appropriation for certain purposes that was deemed prudent by the governing body. Subsequent gains that restore the fair value of the asset of the endowment fund to the required level will be classified as an increase in unrestricted net assets.

The University has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs and other items supported by its endowment while seeking to maintain the purchasing power of the endowment. Endowment assets include those assets of donor-restricted endowment funds the University must hold in perpetuity or for donor-specified periods, as well as those of board-designated endowment funds. Under the University’s policies, endowment assets are invested in a manner that is intended to produce results to achieve an annualized total return (net of fees and expenses), through appreciation and income, equal to or greater than the rate of inflation plus any spending thus, at a minimum maintaining the purchasing power of the Endowment. The assets are to be managed in a manner that will meet the primary investment objective, while at the same time attempting to limit volatility in year-to-year spending. The University expects its endowment funds to provide an average rate of return over time of approximately 5% annually over the rate of inflation. Actual returns in any given year may vary from this amount.

To satisfy its long-term rate of return objectives, the University relies on a total return strategy in which investment returns are achieved through both current yield (investment income such as dividends and interest) and capital appreciation (both realized and unrealized). The University targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.

The University has a policy (the spending policy) of appropriating for expenditure each year no more than 5% of its endowment fund’s average fair value over the prior 12 quarters through the year end preceding the year in which expenditure is planned. In establishing this policy, the University considered the long-term expected return on its endowment. Accordingly, over the long term, the University expects the current spending policy to allow its endowment to grow at an average of 3% annually. This is consistent with the University’s objective to maintain the purchasing power of endowment assets held in perpetuity or for a specified term, as well as to provide additional real growth through new gifts and investment return.

(29)

This lease does not contain a renewal option and requires the University to pay all executory costs (property taxes, maintenance and insurance).

Future minimum lease payments at June 30, 2012, were:

2013 $ 128,250

2014 145,350

2015 145,350

2016 145,350

2017 145,350

Later years 145,350

855,000 $

Rent expense was $154,772 and $145,690 in 2012 and 2011, respectively.

Note 16: Benefit Plans

The University participates in Concordia Plan Service’s defined contribution and defined benefit plans of the Synod. Substantially all full-time employees are covered by these retirement and survivor programs. The University’s contributions to these plans are based on a percentage of each employee’s compensation as determined by Concordia Plan Services. Retirement and survivor program expenses for the years ended June 30, 2012 and 2011, totaled $945,807 and $890,623, respectively.

Note 17: Allocation of Expenses

The University allocated the following expenses to program and support functions for the years ended June 30:

2012 2011

Operation and maintenance of plant $ 3,393,157 $ 3,465,807

Depreciation 2,659,920 2,522,447

Interest 1,120,938 1,161,432

(30)

Note 18: Disclosures About Fair Value of Assets and Liabilities

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of financial position, as well as the general classification of such assets pursuant to the valuation hierarchy.

Investments

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include various types of mutual funds, equity securities, money market funds and exchange traded funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, discounted cash flows or net asset value. Level 2 securities include the University’s interest in pooled investments held at LCMS Foundation and the funds of hedge funds.

Funds on Deposit with Bond Trustee

The funds restricted for debt service are held in a guaranteed investment contract. Fair value of this contract is based on the discounted cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer. Therefore, this contract is classified within Level 2 of the hierarchy.

(31)

Beneficial Interest in Split Interest Agreements

Fair value is measured based on the discounted cash flows of the expected income derived from the University’s interest in the trusts. Due to the nature of the valuation inputs, these interests are classified in Level 2 of the hierarchy.

Beneficial Interest in Perpetual Funds

Fair value is estimated at the present value of the future distributions expected to be received over the term of the agreement. Due to the nature of the valuation inputs, the interest is classified within Level 2 of the hierarchy.

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2012 and 2011:

Quoted Prices

in Active Significant

Markets for Other Significant Identical Observable Unobservable

Assets Inputs Inputs

Fair Value (Level 1) (Level 2) (Level 3)

Mutual funds

Fixed income $ 11,245,161 $ 11,245,161 $ - $ -Large/Mid cap 1,385,014 1,385,014 - -Small cap 345,294 345,294 - -International equities 4,333,630 4,333,630 - -Real estate investment trusts 2,193,662 2,193,662 - -Commodities 2,770,556 2,770,556 - -Equities 1,712,656 1,712,656 - -Exchange traded funds 3,724,281 3,724,281 - -Money market fund 17,525 17,525 - -Funds of hedge funds 6,942,271 - 6,942,271 -Pooled funds at LCMS

Foundation 349,366 - 349,366 -Funds on deposit with

bond trustee 1,372,505 - 1,372,505 -Beneficial interest in

split interest agreements 2,179,010 - 2,179,010 -Beneficial interest in

perpetual funds 2,122,279 - 2,122,279

-2012

(32)

Note 18: Disclosures About Fair Value of Assets and Liabilities - Continued

Quoted Prices

in Active Significant

Markets for Other Significant Identical Observable Unobservable

Assets Inputs Inputs

Fair Value (Level 1) (Level 2) (Level 3)

Mutual funds

Fixed income $ 9,360,819 $ 9,360,819 $ - $ -Large/Mid cap 1,388,283 1,388,283 - -Small cap 1,789,791 1,789,791 - -International equities 6,604,246 6,604,246 - -Real estate investment trusts 2,031,668 2,031,668 - -Commodities 3,427,172 3,427,172 - -Equities 1,765,381 1,765,381 - -Exchange traded funds 3,867,327 3,867,327 - -Money market fund 1,179 1,179 - -Fund of hedge funds 3,291,865 - 3,291,865 -Pooled funds at LCMS

Foundation 381,153 - 381,153 -Funds on deposit with

bond trustee 1,372,505 - 1,372,505 -Beneficial interest in

split interest agreements 2,227,518 - 2,227,518 -Beneficial interest in

perpetual funds 2,175,180 - 2,175,180

-Fair Value Measurements Using 2011

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial position at amounts other than fair value.

Cash and Cash Equivalents

The carrying amount approximates fair value.

Student Accounts and Loans Receivable

The carrying amount of student accounts receivable approximates fair value. The fair value of loans receivable cannot be estimated since the loans are not salable and can only be assigned to the U.S. government or its designees.

Contributions Receivable

Fair value is estimated using a discounted cash flow model. Carrying value is a reasonable approximation of fair value.

(33)

The carrying amount approximates fair value.

Other Investments

Other investments (included in long-term investments) totaling $112,154 and $125,277 at June 30, 2012 and 2011, respectively, consist of assets for which fair value was not determinable.

Long-term Debt

Fair value is estimated based on the borrowing rates currently available to the University for debt with similar terms and maturities. The carrying value of long-term debt is $21,560,000 and $21,950,000 at June 30, 2012 and 2011, respectively. The estimated fair value at June 30, 2012 and 2011, is $21,514,278 and $22,179,621, respectively.

Note 19: Asset Retirement Obligation

Accounting principles generally accepted in the United States of America require that an asset retirement obligation (ARO) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period in which it is incurred or becomes determinable (as defined by the standard) even when the timing and/or method of settlement may be conditional on a future event. The University’s conditional asset retirement obligations primarily relate to asbestos contained in buildings that the University owns. Environmental regulations exist in the state that the University operates in that requires the University to handle and dispose of asbestos in a special manner if a building undergoes major renovations or is demolished. At June 30, 2012 and 2011, the asset retirement obligation totaled $626,036 and $729,446, respectively.

Note 20: Significant Estimates and Concentrations

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters include the following:

Pledges Receivable

At June 30, 2011, approximately 33% of the remaining outstanding pledges receivable balance is due from two donors.

(34)

Note 20: Significant Estimates and Concentrations - Continued

Investments

The University invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the accompanying consolidated statements of financial position.

Current Economic Conditions

The current protracted economic decline continues to present universities with difficult circumstances and challenges, which in some cases have resulted in large and unanticipated declines in the fair value of investments and other assets, declines in contributions, student financial aid and enrollment revenue, constraints on liquidity and difficulty obtaining financing. The financial statements have been prepared using values and information currently available to the University. The values of assets and liabilities recorded in the financial statements could change rapidly.

Note 21: Related Party Transactions

Contributions receivable from board members and employees were $1,106,238 and $346,377, at June 30, 2012 and 2011, respectively.

The University recognized $1,324,417 and $482,873 of contribution revenue from board members and employees in 2012 and 2011, respectively.

Note 22: Letter of Credit

At June 30, 2012, the University had $1,800,000 in an outstanding letter of credit to be used for the purchase of capital improvements. No amounts were drawn against the letter of credit at June 30, 2012. The letter of credit expires September 30, 2012.

Note 23: Subsequent Events

Subsequent events have been evaluated through September 24, 2012, which is the date the financial statements were issued.

(35)

Board of Regents

Concordia University and Concordia Foundation Nebraska Seward, Nebraska

Our audits were performed for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating information listed in the table of contents is presented for the purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Lincoln, Nebraska September 24, 2012

(36)
(37)

Assets

Cash and cash equivalents $ 467,157 $ 135,991 $ - $ 603,148 $ 1,305,535 $ 135,918 $ - $ 1,441,453 Receivables

Student accounts, net of allowance;

$46,000 in 2012 and $44,867 in 2011 408,052 - - 408,052 310,405 - - 310,405 Contributions, net of allowance; $66,126 in 2012

and $63,119 in 2011 1,284,686 364,217 - 1,648,903 1,074,127 131,951 - 1,206,078 Bequests 688,995 - - 688,995 - - - Other 102,929 - - 102,929 95,350 - - 95,350 Prepaid expenses and other assets 365,729 - - 365,729 448,893 - - 448,893 Due from affiliate - 715,958 (715,958) - - 657,494 (657,494) -Student loans receivable - Perkins loan program, net 1,063,832 - - 1,063,832 1,084,815 - - 1,084,815 Long-term investments 27,607,282 7,524,288 - 35,131,570 26,990,177 7,043,984 - 34,034,161 Deferred debt acquisition costs 427,142 - - 427,142 444,285 - - 444,285 Funds on deposit with bond trustee 1,372,505 - - 1,372,505 1,372,505 - - 1,372,505 Cash surrender value of life insurance policies 529,994 92,586 - 622,580 500,206 92,153 - 592,359 Beneficial interest in split interest agreements 2,178,749 261 - 2,179,010 2,227,206 312 - 2,227,518 Construction in progress 4,151,283 - - 4,151,283 1,439,006 - - 1,439,006 Land, buildings and equipment, net 48,320,604 245,250 - 48,565,854 48,508,458 246,250 - 48,754,708 Beneficial interest in perpetual funds 2,122,279 - - 2,122,279 2,175,180 - - 2,175,180

(38)

Concordia Concordia

University Foundation Eliminations Total University Foundation Eliminations Total

Liabilities and Net Assets

Liabilities

Accounts payable and other liabilities $ 3,139,742 $ 2,820 $ - $ 3,142,562 $ 2,482,676 $ 2,820 $ - $ 2,485,496 Line of credit 640,711 - - 640,711 - - - Student housing deposits 376,424 - - 376,424 490,352 - - 490,352 Due to affiliate 715,958 - (715,958) - 657,494 - (657,494) Deferred revenue 599,823 - - 599,823 560,590 - - 560,590 Asset retirement obligation 626,036 - - 626,036 729,446 - - 729,446 Capital lease obligations 554,536 - - 554,536 688,988 - - 688,988 Long-term debt 21,560,000 - - 21,560,000 21,950,000 - - 21,950,000 Government grants refundable - Perkins loan program 980,252 - - 980,252 1,013,937 - - 1,013,937

Total Liabilities 29,193,482 2,820 (715,958) 28,480,344 28,573,483 2,820 (657,494) 27,918,809

Net Assets

Board designated 1,589,261 274,576 - 1,863,837 1,284,432 274,913 - 1,559,345 Net investment in property and equipment 33,877,905 245,250 - 34,123,155 28,577,286 246,250 - 28,823,536 Undesignated (18,916,218) 174,266 - (18,741,952) (14,098,036) 145,684 - (13,952,352) Total unrestricted 16,550,948 694,092 - 17,245,040 15,763,682 666,847 - 16,430,529 Temporarily restricted 19,245,844 1,094,318 - 20,340,162 18,973,176 1,173,123 - 20,146,299 Permanently restricted 26,100,944 7,287,321 - 33,388,265 24,665,807 6,465,272 - 31,131,079

Total Net Assets 61,897,736 9,075,731 - 70,973,467 59,402,665 8,305,242 - 67,707,907

Total Liabilities and Net Assets $ 91,091,218 $ 9,078,551 $ (715,958) $ 99,453,811 $ 87,976,148 $ 8,308,062 $ (657,494) $ 95,626,716

(39)

Revenues, Gains and Other Support

Tuition and fees $ 30,096,281 $ - $ - $ 30,096,281 $ 28,161,677 $ - $ - $ 28,161,677 Less: Scholarships and grants (13,046,046) - (218,244) (13,264,290) (11,915,738) - (165,728) (12,081,466) Net tuition and fees 17,050,235 - (218,244) 16,831,991 16,245,939 - (165,728) 16,080,211 Concordia University System 11,000 - - 11,000 40,000 - - 40,000 Contributions 1,476,910 34,917 (27,263) 1,484,564 1,500,417 182,309 (131,775) 1,550,951 Interest income - cash and cash equivalents 29,562 73 - 29,635 28,354 159 - 28,513 Investment income 178,187 12,185 - 190,372 143,159 9,735 - 152,894 Sales and services of auxiliary expenses 5,729,582 4,848 - 5,734,430 5,372,236 5,367 - 5,377,603 Other income 914,542 - - 914,542 922,422 - - 922,422 Gain on sale of property 16,296 - - 16,296 188,868 - - 188,868 Net gains (losses) on investments (55,575) (13,646) - (69,221) 1,017,066 217,467 - 1,234,533

25,350,739

38,377 (245,507) 25,143,609 25,458,461 415,037 (297,503) 25,575,995 Net assets released from restrictions 3,514,322 237,662 - 3,751,984 2,709,956 181,793 - 2,891,749 Total Revenues, Gains and Other Support 28,865,061 276,039 (245,507) 28,895,593 28,168,417 596,830 (297,503) 28,467,744 Expenses and Losses

Educational and general Academic programs

Instruction - divisional 8,614,593 - - 8,614,593 8,227,569 - - 8,227,569 Other instructional programs 106,299 - - 106,299 90,328 - - 90,328 Support programs

Academic support 2,011,255 - - 2,011,255 1,974,619 - - 1,974,619 Student services 6,764,143 - - 6,764,143 6,642,678 - - 6,642,678 Institutional support 5,431,070 - - 5,431,070 5,236,771 - - 5,236,771 Fund-raising 1,388,757 3,287 - 1,392,044 1,396,580 2,703 - 1,399,283 Distributions for the benefit of

Concordia University, Nebraska - 245,507 (245,507) - - 297,503 (297,503) Auxiliary enterprises 3,761,678 - - 3,761,678 3,588,036 - - 3,588,036 Total Expenses and Losses 28,077,795 248,794 (245,507) 28,081,082 27,156,581 300,206 (297,503) 27,159,284

Change in Net Assets 787,266 27,245 - 814,511 1,011,836 296,624 - 1,308,460

Net Assets - Beginning of Year 15,763,682 666,847 - 16,430,529 14,751,846 370,223 - 15,122,069

Figure

Updating...

References

Updating...