2013/2014 CSU, Chico Annual Report

CALI FOR NIA STAT E UNIVERSIT Y, C H IC O T HE UN IVERSI TY FOU NDATI ON 20 13 —20 14 ANNUAL REP ORT

CONTENTS

C A L I FOR N I A STAT E U N I V E R SI T Y, C H ICO

INTR O D U C T IO N i

T H E U N I V E R SIT Y FO U N DAT IO N

L ETTER FRO M T HE P RES IDE N T

A N N UA L R E P ORT 201 3—2014

1

STO R IES O F IMPAC T A TESTA ME N TARY GIFT

2

CO L L EG E O F AGRICULT URE

3

CO L L EG E O F BE HAVIO RAL AN D S O C IAL S C IE N CES

4

CO L L EG E O F BUS IN ESS

5

CO L L EG E O F CO MMUN IC AT IO N AN D E DUC AT IO N

6

CO L L EG E O F E N GIN E E RIN G, CO MP UT E R S C IE N CE , A ND CO NST RUC T IO N MAN AGE ME N T

7

CO L L EG E O F HUMAN IT IES AN D FIN E ARTS

8

CO L L EG E OF N AT URAL S C IE N CES

9

FINA NC IA L RE P O RT P H IL A NTHRO P IC HIGHLIGHTS G IFTS AN D P LE DGES D O NORS

10

STATEM EN T O F FIN AN C IAL P OS IT IO N A SSETS L IA B I LIT IES

11

END OWM E N T MARK E T VALUE

11

END OWM E N T IN VEST ME N T ALLO C AT IO N

12

P O O L ED EN DOWME N T IN VEST ME N T P E RFO RMAN CE END OWM EN T BY P URP OSE

13

SU M M A R Y O F RE VE N UE SU M M A R Y O F DIST RIBUT IO N S

13 13

IND EP ENDE N T AUDITO R’S RE P O RT

14

BOARD OF GOVERNORS

July 1, 2013—June 30, 2014

Doug K. Guerrero, Chair Retired Regional Vice President, West Region, CEMEX

HE

Gregory Kelly, Vice Chair Chief Executive Officer, California Olive Ranch

supporting California State University,

Richard E. Ellison, Secretary Vice President for University Advancement

University

founded

in

Foundation

1940,

was

dedicated

to

Chico’s mission as a comprehensive, regional

university

principally

serving

Northern

Lori Hoffman, Treasurer Vice President for Business and Finance

California by leveraging private support for excellence

Robert Kittredge, Past Chair Retired Managing Partner, PricewaterhouseCooper

in

instruction,

CSU, Chico is renowned for its “Chico Experience”

research,

and

public

service.

that provides distinctive and innovative programs, superior Drew Calandrella Vice President for Student Affairs Mark Francis President and CEO, Golden Valley Bank Claire Godwin Student Representative Evelyn Jacobs Regional President, U.S. Bank Tod Kimmelshue Regional Vice President, Golden State Farm Credit

The University Foundation supports the University’s

mission by providing oversight of the following activities:

▸ engaging private support for academic programs,

faculty and students, equipment, and other capital needs

▸ stewarding the resources entrusted to

the University Foundation to maximize impact on people and programs

academic technologies, exceptional levels of student support, a wonderful college-town atmosphere, a friendly campus, a strong sense of community, and contributions to the community and the environment. These attributes enhance student learning and student success. Supporting the Chico Experience for students, faculty, and staff is at the forefront of every initiative, decision, and activity undertaken by the University Foundation’s Board of Governors.

▸ partnering with University Advancement to

support our alumni, friends, and community members who are prospective donors to ensure proper recognition and stewardship for all donors and to serve as ambassadors to all external constituents, representing the Chico Experience and telling the story of CSU, Chico’s impact

JoAnn Morgan Past President, Turner Print Museum Board

Through the partnership of the University Foundation’s

James O’Bannon Faculty Representative

June 30, 2014, The Foundation’s net assets were nearly $72

Michael Prime Retired Founder, Option Care

Board of Governors and University Advancement, as of million. This is a testament to the loyalty, generosity, and dedication of our many supporters.

Leslie Schibsted Interim Associate Vice President for Development Belle W.Y. Wei Provost and Vice President for Academic Affairs Paul J. Zingg President

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

FROM THE PRESIDENT ONSIDERING the beauty of our campus, the dedication of our faculty and staff, and our students’ commitment to values like service and sustainability, it is clear that Chico State is a place where we do so much more than confer degrees. Rather, we create informed, engaged citizens who understand

Celebrating the impact of philanthropy at Chico State

their role in our global community and how each can contribute to its betterment.

Our institution could not achieve this without partners like you: people who love and support Chico State

and take action to ensure it flourishes and inspires. Whether you have volunteered for one of our many service organizations, gifted funds to start a scholarship, or donated your time and talents by serving on a University board, your contributions have made a difference on this campus and in the community, and for that we are grateful.

I am very pleased to present you with this University Foundation annual report, which clearly demonstrates the

many ways private support is making a difference in the lives of our students and in the greater community. Inside these pages, you’ll find stories on faculty, students, and others positively impacted by private, philanthropic support.

I know you will be as proud as I am about what our University can achieve with help from our friends. These stories remind us every day of the noble, necessary work that is our privilege to accomplish.

Besides celebrating the impact of philanthropy, this report also celebrates another banner year in fundraising at

Chico State. Thanks to the generous support of our friends and alumni, the 2013-14 fiscal year saw an increase in giving of 7.6 percent over the previous year. The Foundation also enjoyed strong endowment returns of about 14 percent, which is great news for the future of our students, programs and University.

For 17 years, Chico State has been ranked a top-10 regional public university in the West by U.S. News and World

Report. With your support, we will continue to achieve that mark, serving our students, community and the North State by delivering high quality education and services. From all of us at Chico State, we are grateful to share the journey with you.

Warmly,

Paul J. Zingg, President California State University, Chico

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1

A TESTAMENTARY GIFT

Alumna’s bequest positions future arts students for success

INCE earning an art degree from Chico

worked and sold her paintings, mostly through private

State College in 1967, New York City artist

studio visits.

Mary Rolland has carved out a successful

career for herself. Her colorful landscapes

to remember there are alternatives to the mainstream way

have sold to more than 700 art collectors. She is currently

of doing things, and that anything is possible if you just

a successful real estate broker in New York City and

believe.

intends to return to full-time painting in 2015.

Though she enjoyed art as a youth, Rolland says it

those who helped me, such as [artist and art professor]

wasn’t until she arrived at Chico State College in 1963

Ken Morrow, who during his tenure continually invested

that she understood a career in art was plausible, or that

in the success of his students, providing his artistic

a degree program existed to support one. “Chico State

guidance and encouragement,” Rolland said.

guided me from the day I registered into an arts program

that offered great teaching, mentoring, and support,” she

in the field, strive for their own successes, and create

said.

great art so that, when able, they will choose to help

others as well.”

That support has inspired Rolland to establish a

Rolland urges those interested in a career in the arts

“This gift is intended to continue the legacy of

“I hope that this gift will encourage students to stay

$1.95 million arts bequest that will fund an endowment.

Her bequest will provide critical funding to future students pursuing their dreams of being artists.

In addition to this testamentary gift, she has established an annual award which will allow a student in the fine arts to spend a week with her in New York, visiting artists’ studios and gaining inspiration from the city.

Art alumna and artist Mary Rolland’s $1.95 million arts bequest and accompanying scholarship will ensure a bright future for aspiring artists at CSU, Chico.

Rolland’s vision in creating these scholarships

reflects

her

own

creativity

and

innovation.

After graduating from Chico State College, she spent time in Hawaii and Sun Valley, Idaho, before moving to New York to pursue her career as an artist. In 1981, she purchased a loft in Soho, where she has since lived and

2

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

C O L L E G E O F A G R I C U LT U R E

N CSU, Chico’s steadily growing College

Dancer, a CSU, Chico alumnus and a ranch manager for

of Agriculture, industry connections are

the company, said her company believes the GrowSafe

not only vital but also mutually beneficial.

system could change the future of the cattle and beef

This notion was recognized last year by

industries.

Barry Swenson, owner of Alturas Ranches and Green

Valley Enterprises, after his company partnered with

educate our beef producers, cattlemen, and consumers in

the college on a pilot study of Lowline Angus-influenced

the advantage and importance of feed efficiency,” Dancer

cattle.

said.

He was so pleased with the college’s ability to do the

“Partnering with Chico State is a huge opportunity to

The College of Agriculture completed its first official

research and return valuable data that he made a $50,000

foundation project with Alturas Ranches this summer and

donation to install six GrowSafe feeders at the University

began a second one with a new set of cattle in September.

Farm to support further research comparing the growth

performance, feed efficiency, and carcass traits of these

overseeing the program, says the project gives students

cattle.

the opportunity to be on the forefront of beef cattle

feeding technology in breed research.

The donation was used as a match to obtain an

Professor Kasey DeAtley, one of the faculty

Agricultural Research Institute grant, which is offered

only to California State Universities.

reason I’m at Chico State, is that we have students

GrowSafe systems collect individual data to monitor

involved at every aspect of this thing,” she says. “We

feed intake and animal behavior. Each steer receives an

build students into our grants, we pay them, they’re

electronic ear tag, which tracks and records feed intake

out there feeding the cattle, they’re out there doing that

each time the animal eats. The system automatically

management of the cattle, classes are involved with it, so

calculates intake by monitoring the weight of feed in the

it makes a great teaching tool.”

feed bin before, during and after each animal eats in a herd setting.

Having individual intakes for animals in a pen allows

Industry partner provides matching funds to support feed research

“The really cool part about it, and this is the whole

Agriculture major Garrett Wallis is one of the students working with GrowSafe feed equipment, purchased in part with funds contributed by Green Valley Enterprises and Alturas Ranches.

operation managers to identify more efficient animals compared to herd mates. It also helps manage potential health issues by identifying animals that go off feed. Jess

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3

COLLEGE OF BEHAVIORAL AND SOCIAL SCIENCES

Emeriti faculty establish scholarship for child development students

N the more than 30 years that they’ve known

one another, emeriti faculty members Bradley

students with the cost of attending college but also to

Glanville, Judy Bordin, and Ailene Dean have

honor them and generate a positive sense of belonging

developed an enduring collegiality.

within their field.

This year, they demonstrated that collegiality in the

The scholarship will serve as a way to not only help

“It’s just one of many ways to support students,”

form of a scholarship, the Child Development Emeriti

Dean said. “We all support students in our teaching, but

Faculty Scholarship, to which they each contributed.

this is more of a financial way to support and a recognition

way of supporting students.”

“We wanted to leave some kind of legacy, but not

in anybody’s name, so that people could contribute to it

and build upon it in the future,” Glanville said. “It wasn’t

or transfer junior or senior and have a minimum 2.8 GPA.

meant to elevate anybody; it was a way to try to honor a

In addition, they must write a brief essay on how they

student, a way to give back to the University, and give

intend to impact the field of child development.

back to the people who really make the University—the

students.”

2015.

Together, they contributed $12,500 toward the fund

Applicants for the scholarship must be a continuing

The first scholarship will be awarded in October “We certainly hope that we have created something

that they hope will be built upon by current and future

that other faculty members will see as a valuable way to

child development faculty. The scholarship, which will

encourage students in their field,” Glanville said. “It can

be awarded to one student per year, is a reflection of their

be done, and if a lot of faculty members come together,

personal and professional desire to assist students in

they can all contribute a small amount and they can get

furthering their study and work on behalf of children and

to the funding level that will last in perpetuity.”

their families.

Child development faculty emeriti Bradley Glanville, Judy Bordin, and Ailene Dean have started a scholarship for child development students.

“This is going to sound very cliché, but having good

early years, having good teachers, effective adults who work with kids in no matter what area, whether they are recreation leaders, or preschool teachers, or social workers—to have an understanding about how children grow and develop is essential,” Bordin said.

4

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

COLLEGE OF BUSINESS

HE name Scott Chalmers is synonymous

with RSC Associates, the successful

left home at 18 and attended Napa Junior

residential and commercial property

College, serving as student body vice-president.

management company based in Chico.

He needed the G.I. Bill to pay for college, so

A 1974 MBA alum, Chalmers founded the firm

A self-starter from a young age, Chalmers

he became a medic for the U.S. Army

in 1981 and spent 30 years growing it throughout the

and served in Vietnam. When he

North State. Before he sold it in 2010, the company had

returned, he enrolled at CSU,

established new offices in Sacramento.

Chico, where he met his now-late

While Chalmers may best be known for his business

wife of 40 years, Cindy. Their two

acumen, his penchant for helping others has made no

children, Christa and Cara, are

small difference. While he was pouring himself into his

also university alumni.

business, he was also indulging his passion for aiding

students in higher education. In addition to founding

reputation of the College of Business

scholarships through Rotary and Butte College, in

and the Career Center for helping

1995 he started the R. Scott Chalmers Scholarship for

him get his start after graduating. He

business majors at CSU, Chico. For nearly two decades,

advises current students to work hard

the scholarship has helped hard-working students

and maintain a thirst for knowledge.

realize their dreams of achieving a high-quality business

education.

everything,” he said. “There’s always

more to learn.”

But Chalmers wasn’t finished. Driven by a desire to

Alumnus creates lasting legacy with charitable trust

Chalmers credits the solid

“You’re never going to know

make a lasting impact at the University that gave him his start, in 2014 he established a charitable trust with $250,000 to support his scholarship. The move cemented his commitment to the University and his ability to support students long term.

Alumnus Scott Chalmers’ $250,000 charitable trust will support the scholarship he started for business students in 1995.

“Education totally changed my life,” Chalmers said.

“It gave me the confidence to take chances I wouldn’t have otherwise. One of my beliefs was always to give back.”

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5

CO L L EG E O F CO M M U N I C AT I O N A N D E D U C AT I O N

Local company’s support of autism camp pays dividends

Neo Campagna (left) and Natalie Cruzen perform original music at CSU, Chico's Freedom in Elements camp for people with autism in July. The threeday program was made possible by a $15,000 donation from Chico’s CleanriteBuildrite.

CHICO STATE summer camp to aid autistic

campus experience and get them thinking about college,

teens and adults through the arts was made

and preset that in their mind,” Lytle said. “It’s incredible,

possible with a gift in 2014 from a prominent

the talents and abilities that these individuals bring. The

area business.

arts allow for flexibility in presenting and communicating,

Professor Rebecca Lytle, adapted physical education

program coordinator, learned in June that Cleanrite-

poetry.”

Buildrite was donating $15,000 raised at its annual

fundraising golf tournament for the Freedom in Elements

of Cleanrite-Buildrite’s Chico Division, said the company’s

Program, which ran July 14–16, 2014.

fundraising golf tourney has supported many worthy

The funds paid for scholarships and operating expenses

causes and nonprofits over the years, including area

for the 2014 camp, which introduced music, arts, and theatre

fire departments, the Boys and Girls Club, and the Butte

to 13 local residents with autism.

Humane Society.

“For many of them, school settings don’t include

Jill Cooper, senior business development representative

“Cleanrite-Buildrite has responded to the needs of

much exposure to the arts,” said Lytle. “We work

the community in emergencies and to those in need for 54

with them as individuals and help them find their

years; we are committed to continuing for years to come,”

strengths. They think, ‘I can do this.’ It’s a great

Cooper said.

experience for them.”

summer programs hosted by CSU, Chico’s Autism Clinic,

During the program, three facilitators

in the arts invited the campers to write poetry, take part in a play, or use various art materials.

The Freedom in Elements camp is one of several

which is part of the Department of Kinesiology.

Established in 2011, the program focuses on increasing

More than a dozen CSU, Chico credential

social skills and developing interpersonal relationships

students assisted throughout the program,

through movement, theatre, art, drama, and music. Lytle

gaining valuable hands-on experience.

hopes to offer the program annually, but there have been

Campers stayed in campus residence halls

years when the funding wasn’t there.

and showed family members what they

created at the end of the three days.

“The whole focus is really to

give them an opportunity to be in a

6

and they end up creating amazing rap songs, paintings, and

“There’s no natural funding for programs like this,”

she said. “The community piece is huge. As faculty, if you want to do a service program outside of the classroom, you have to find a way. Cleanrite-Buildrite made it possible.”

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

COLLEGE OF ENGINEERING, COMPUTER SCIENCE, AND CONSTRUCTION MANAGEMENT

HILE

Department

Computer

of

Engineering

Electrical Interim

and

Patricia; 2013 Distinguished Alumnus Mark Fitzpatrick;

Chair

and electrical engineering professor emeritus Bill Lane

Larry Wear was working at the University

and his wife, alumna Jeanne.

of Washington–Tacoma, a wealthy alum

Fundraising for the initial $150,000 is ongoing. Once

put up more than $1 million and challenged the faculty

established, the endowment will aim to attract high-

there to match it to create a scholarship endowment

achieving electrical and computer engineering students

in excess of $2 million for students. Wear and his wife,

to CSU, Chico.

Pam, contributed to that fund, resulting in a $12,000

scholarship in their name.

keep attracting the absolute best students to Chico by

offering them something hopefully that they might not

When he returned to CSU, Chico last year, where

Faculty, alumni lead way in founding scholarship for top students

“It’s a merit-based scholarship, so our goal is to

he had previously worked for more than 30 years, he

get somewhere else,” Wear said.

wanted to try to do something similar here. He began

by talking to alumnus Gary Sitton, who was teaching a

good-paying jobs. But, more importantly, they can make

special course called Technology Startups that featured

major contributions to society. It’s electrical engineers

a number of successful entrepreneurs as lecturers. Sitton

and computer engineers and computer scientists that are

thought Wear’s idea was a great one, and found several

driving a lot of the innovation that’s keeping our economy

people who were willing to put up donations of between

going.”

“Our graduates can get good jobs. They can get

$10,000 and $25,000.

“At the end of Gary’s class, we had over $100,000

committed,” Wear said, which included donations from the Wears and Sitton and his wife, Judy. “Our goal was to get $150,000 committed from a few people and then go out and try to challenge the alumni to match that with the intent of getting $250,000 to fund two four-year scholarships a year that would pay about $2,000 a year to the recipients.”

Department of Electrical and Computer Engineering Interim Chair Larry Wear and his wife, Pam, have helped raise more than $100,000 for an endowment aimed at attracting high-achieving electrical and computer engineering students to CSU, Chico.

Other contributors to the initial fund include 2014

Distinguished Alumnus Rob Salmon and his wife,

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7

COLLEGE OF HUMANITIES AND FINE ARTS

Estate gift supports graduate students in western history

HEN graduate student Fan Luo began

her

at

dergraduate and graduate degrees and, presumably, a

Chico State, a gap in the local historical

student of the beloved professors for whom the award is

knowledge base quickly became apparent.

named. Though he never taught history, as was his inten-

While extensive research had been done on the

tion, he authored a book in 1968 on a lynching that oc-

Chinese communities in Butte County toward the end of

curred in Modoc County, Legend Into History: Facts and

the 19th century, less is known about their presence and

Fiction of the Lookout Lynching. (The book is available on

activities in the early 20th century.

Amazon.com.) After their retirement from his family’s de-

A Chinese American student, Luo found this

partment store in 1983, he and his wife took a keen inter-

history gap troubling and decided to focus her thesis on

est in western history and traveled often to local histori-

augmenting the local knowledge of the Chinese during

cal sites.

that time.

Her task was time consuming. She scoured the

says that Souther’s connection to the University and

archives and collections at county public libraries and

affinity for higher education prompted him to gift a

the Butte Historical Society and volunteered her summer

portion of his estate to benefit history students.

months at Oroville’s historic Chinese temple.

Submitted this fall for review, her final thesis focuses

with anything,” Breshears said. “He would be honest,

on the Chinese community in Oroville from 1900 to 1920,

give you the best information he had, and he would go to

when a number remained in the area despite pervasive

the trouble to research it to get the answer.”

anti-Chinese sentiment.

Graduate student Fan Luo worked with Patti Sprecher, hostess of Oroville’s historic Chinese temple, in 2013. Her research was supported by the Clarence McIntosh-William Hutchinson Memorial Research Scholarship for California and Western History, which was bolstered recently by an endowment from the estate of alumnus James Souther.

master’s

program

in

history

Souther was a 1966 history alumnus with both un-

Souther’s lifelong friend, Paul Breshears of Alturas,

“He was one of these individuals you could trust

Thanks to his passion and generosity, Souther’s

Luo’s efforts were supported in part by the Clarence

legacy of research will live on at CSU, Chico. The impact

McIntosh-William Hutchinson Memorial Research

of his gift will be felt for years by students like Luo, who

Scholarship in California and Western History.

expects to receive a hard-earned master’s degree in

Established during the 1990s, the

December.

award was bolstered in 2013 by a $382,000 endowment from the estate of James Souther of Alturas, California, who passed away in 2011.

8

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

CO L L EG E O F N AT U R A L S C I E N C E S

URING the normally quiet months of

Marshall Ginter (’55) have supported the program since

summer, the third floor of the Physical

then. Recently, alumni have established two new awards

Sciences Building teems with activity each

named for CSU, Chico chemistry faculty: the David Ball

year as a dozen or so students conduct real-

Summer Research Award and the Don Alger Summer

world chemistry experiments alongside faculty mentors.

Research Award.

The

These are the scholars of the Chemistry Summer

combined

funding

supports

program

Research Institute (CSRI), a 10-week program which pairs

participants with a $3,500 stipend for living expenses,

faculty members with chemistry students for hands-on

materials for research, and travel expenses to the

research. Together, the student-faculty teams perform

National Meeting of the American Chemical Society in

advanced work with practical applications in industries

San Francisco—a pinnacle experience for most.

including agriculture and pharmaceuticals.

three high school students in addition to the Chico State

In 2014, projects included turning waste from

This year, the program was also able to accommodate

biodiesel production into a usable product, making a

students.

biodegradable polymer from beet sugar, and testing

metal-based molecules that show promise in slowing

Jared Brown worked on developing a six-week capstone

bacteria and cancer growth.

course on protein isolation for biochemistry majors.

The program, which celebrates its 10th year, offers

A technique used extensively in the pharmaceutical

valuable hands-on learning opportunities for students,

industry, isolating proteins in living organisms is

said Department of Chemistry and Biochemistry Chair

important to understanding human health and disease.

Randy Miller, who manages the program.

Alongside biochemistry professor Dan Clark, Brown ran

tests and experiments that will eventually be a part of the

“We don’t stand there overseeing them every

At the 2014 CSRI, fourth-year biochemistry major

minute,” Miller said. “They’re conducting real research

course.

with real applications.”

quantification and accuracy and become a better chemist

The program was formed in 2004 through a unique

He said the program helped him gain skills in

combination of private gifts, agency grants, and

overall.

industry partnerships. Pharmaceutical giant Roche

Palo Alto provided an initial investment of $70,000,

and something you don’t find at other universities,”

but gifts from chemistry alumni Eugene Reid (’33) and

Brown said.

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Alumni, industry gifts support students’ chemistry research

“The independent nature of the institute is unique,

Biochemistry major Jared Brown, left, works with biochemistry professor Dan Clark to isolate proteins during the 2014 Chemistry Summer Research Institute. The unique program is supported by a combination of alumni gifts, industry partnerships, and agency grants.

9

PHILANTHROPIC HIGHLIGHTS GIFTS AND PLEDGES We have our alumni, parents, and friends

Donor Gifts And Pledges

$ 9,548,488

to thank for investing in the future of CSU,

Total Endowment

$52,562,821

TOTAL NET ASSETS

$71,618,490

Chico. Together, their gifts and pledges provided $9.5 million in support. In

$10 $9 $8 $7

corporations and foundations made nearly

$6

25,000 gifts to our campus. Thanks in part to the University’s 6,470 alumni donors, giving increased by 7.6 percent.

CSU, Chico’s alumni and parents were among the most generous in the CSU system.

MILLIONS

2013–2014, more than 12,000 individuals,

$5 $4

FY 2011–12

FY 2012–13

FY 2013–14

Cash & In-kind 4,299,497

5,265,932

5,002,264

3,265,000

3,605,251

4,546,224

$7,564,497

$8,871,183

$9,548,488

FY 2011–12

FY 2012–13

FY 2013–14

14

7,199

6,727

6,470

12

Parents 1,977

3,210

3,269

217

487

188

Non-Alumni 4,634

3,834

1,514

Students 48

38

59

Pledges

$3 $2 $1 —

TOTAL

F Y 2011–12

FY 2012–13

FY 2013–14

DONORS

Alumni

Faculty & Staff

Corporations and

10

10 8 6 4 2

Foundations 863 TOTAL

THOUSANDS

16

14,075

14,296

12,363

— FY 2011–12

FY 2012–13

FY 2013–14

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

ASSETS AND LIABILITIES

ENDOWMENT VALUE AND NET ASSETS

The University Foundation’s assets include pooled and external endowment funds

YEAR

totaling $52.6 million as of June 30, 2014. The pooled endowment valued at $52.5 million

FY 2003–04 $27,399,394 $42,242,620

is managed by The University Foundation’s Board of Governors through its Finance and

FY 2004–05 $29,579,432 $45,693,950

Investment Committee and under the advisement of Arnerich Massena Inc. The balance

TOTAL ENDOWMENT

FY 2005–06

of the endowment’s assets are held externally; they include commercial real estate,

NET ASSETS

$30,840,000

$60,152,968

FY 2006–07 $35,741,000 $67,809,742

government bonds, and other investments.

FY 2007–08 $34,656,000 $67,983,021

The Foundation’s investment portfolio is designed to deliver a stable, long-term rate

FY 2008–09 $28,634,866 $57,678,626

of return to support student scholarships, academic instruction, program support, research, and public service projects. The assets are invested in a well-diversified

FY 2009–10 $38,957,678 $60,090,742

investment portfolio that balances risk and return while limiting volatility. Over the past

FY 2010–11 $43,021,055 $65,938,569

10 years, the endowment value has increased despite market volatility due to generous

FY 2011–12 $42,174,342 $64,273,199

donor support and prudent investing practices.

FY 2012–13

$48,498,024

$66,713,019

FY 2013–14

$52,562,821

$71,618,490

ASSETS

LIABILITIES 476,389

Net accounts and other receivables

631,560

Prepaid expenses

175,371

Investments 73,984,029

Accounts payable

564,413

Accrued expenses

54,800

$60

Deferred revenue

–

$50

39,000

$40

Notes payable Liability under

Contributions receivable - net

692,959

trust agreements

Notes receivable

121,850

Liability for amount held for others

Buildings & equipment net of accumulated depreciation TOTAL ASS ET S

260,034

TOTA L L I A B ILIT IE S

2,212,035 1,853,454 $ 4 ,7 23,702

ENDOWMENT MARKET VALUE

MILLIONS

Cash and Cash Equivalents

$30 $20 $10 – FY 03–04 04–05 05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13–14

$76,3 4 2 ,1 92 POOLED ENDOWMENT INVESTMENT PERFORMANCE

TOTA L N ET A SS ET S

$7 1, 618 , 49 0

ARNERICH MASSENA INC. IS A WEST COAST-BASED INDEPENDENT INVESTMENT ADVISORY FIRM THAT OFFERS SERVICES TO CORPORATIONS, INSTITUTIONS, STATE AND LOCAL GOVERNMENTS,CHARITABLE ORGANIZATIONS, TRUSTS AND ESTATES, CORPORATE PENSION AND PROFITSHARING PLANS, AND PRIVATE CLIENTS. ARNERICH MASSENA INC. ADVISES TO APPROXIMATELY $21 BILLION IN ASSETS.

T H E U N I V E R S I T Y F O U N D AT I O N | A N N UA L R E P O R T 2 0 1 3 —2 0 14

Endowment Peer Group Comparison 6/30/14

1 Year

3 Year

5 Year

10 Year

University Foundation

14.0%

8.0%

10.1%

6.2%

11

SUMMARY OF REVENUE E N D O W M E N T I N V E S T M E N T A L LO C AT I O N ASSETS CLASS

RE V E NUE F ROM F IN A NCI A L S TAT EME NT

FY 2013–14

Current Year%

Art/Collections

526,550

Balanced Funds Cash and Treasuries

FY 2011–12

FY 2012–13

FY 2013–14

1%

Donations and Contributions 4,640,588

7,123,831

4,344,732

2,318,299

4%

Interest and Dividend Income

620,501

687,574

537,581

1,378,538

3%

Commodities 18,846

0%

Net Gains (Losses)

-977,115

4,177,421

5,484,948

University Programs

893,697

766,809

752,082

Receipts and Other Income

938,354

711,557

979,875

$6,116,025

$13,467,192

$12,099,218

Core Equities

9,767,565

19%

Fixed Income

6,540,758

12%

Foreign

9,317,229

18%

Partnerships and Private Equity

16,574,739

32%

Real Estate

6,120,298

12%

TOTAL

TOTAL REVENUES

Receipts and Other Income

$52,562,821

University Programs Art/Collections

8% 6%

1% Balanced Funds Cash and Treasuries

Real Estate

12%

4% 3%

36% Core Equities

4%

Donations and Contributions

45% Net Gains (Losses)

Partnerships and Private Equity

4%

32%

Interest and Dividend Income

12% Fixed Income

18% Foreign Under the authority of the Board of Governors, the Finance and Investment Committee The Foundation’s Investment Policy Statement requires diversification of the

meets regularly to review endowment performance and allocation relative to the

endowment’s investment assets. The chart above shows the University’s allocation

policy benchmarks. They strive to maximize return, limit risk, and reduce volatility of

for both pooled and external endowment funds as of June 30, 2014.

the endowment.

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C A L I F O R N I A S TAT E U N I V E R S I T Y, C H I C O

SUMMARY OF EXPENSES S U M M A R Y O F D I S T R I B U T I O N S F R O M F I N A N C I A L S TAT E M E N T

ENDOWMENT BY PURPOSE

FY 2013–14

AMO UNT

2,125,687 1,781,231 1,769,618

Scholarship & Awards

$28,720,735

FY 2011–12

Academic Support

FY 2012–13

Development and Fundraising

819,799 694,442 814,352

Faculty Support

$4,464,489

Facilities and Others

169,993 182,793 293,310

Academic & Program Support

$19,377,597

Instruction and Research, and Public Service 712,685 Student Grants, Scholarships, and Services TOTAL EXPENSES

3,319,898 $7,148,062

739,159 294,923

$6,757,756

$6,766,700

Academic and Program Support

12%

Facilities and Others

4% 4%

37% 53%

Academic Support

$52,562,821

3,360,131 3,594,497

Development and Fundraising

Instruction and Research, and Public Service

J U N E 3 0, 2 0 14 E N D O W M E N T

Student Grants, Scholarships, and Services

Scholarships and Awards

8%

26%

T H E U N I V E R S I T Y F O U N D AT I O N | A N N UA L R E P O R T 2 0 1 3 —2 0 14

55%

Faculty Support

13

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying financial statements of The University Foundation, California State University, Chico (the Foundation), a nonprofit organization, which comprise the statements of financial position as of June 30, 2014; the related statements of activities and cash flows for the years then ended; and the related notes to the financial statements. The prior-year summarized comparative information has been derived from the Foundation’s 2013 financial statements; in our report dated September 20, 2013, we expressed an unmodified opinion on those financial statements.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY 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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Foundation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

14

OPINION In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America EMPHASIS OF A MATTER As explained in note 1, the financial statements include investments valued at $25,839,109 (36.08% of net assets) with fair values estimated by the Foundation in the absence of readily determinable fair values. The Foundation’s estimates are based on information provided by the fund managers or the general partners.

OTHER MATTER Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying financial information listed as supplementary information in the table of contents is presented for purposes of additional analysis as required by the California State University Chancellor’s Office and is not a required part of the 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 audit 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.

Matson and Isom September 19, 2014 Chico, California