Edgewood College Annual Report, 2012-2013

Edgewood College

ANNUAL REPORT 2012 – 2013

We have been blessed with a strong Board of Trustees. They are absolutely dedicated to helping make Edgewood College a better place for students to receive a high quality educational experience. I am grateful for the leadership, commitment, and support of the Trustees during my time here.

Terri and I found an outstanding faculty and staff at Edgewood College. They demonstrate their commitment to providing our students a first-rate education every day. That includes challenging the students as well as supporting the students - both in and out of the classroom.

We are privileged to serve a socio-economically diverse student body that reflects our broader community. I was the oldest of five raised on a farm in Iowa from a family with extremely limited financial means. I had little aspiration of being able to attend college until my senior year of high school. It makes me proud that Edgewood College serves a student body where 35% of our full-time undergraduate students are eligible for the Pell grant.

Most years, between one fourth and one third of our freshman class are the first in their family to go to college.

Perhaps some of you are aware that I served as an infantry officer in Vietnam. Today, Edgewood College serves more than 140 veterans and their dependents. Many of these young people had it a lot harder than I did in Vietnam as they served multiple deployments and time away from their families and communities. I’ve gotten to know a number of the veterans and they tell me they have found a home at Edgewood College.

In the coming year, we have much remaining to accomplish as we continue to lay the groundwork for a vibrant future for this College. I pledge to continue to work with our Trustees and our campus community in pursuing the goals of our Strategic Plan. I will make every effort to assure that there is a seamless transition to a new president.

Please allow me this opportunity to thank the entire Edgewood College community for the many significant achievements of the past decade.

The successes of Edgewood College belong to YOU who support this wonderful institution. Our achievements belong to the entire Edgewood College Community. For that I am very grateful! Thank you.

Daniel J. Carey

A Message From the President

It’s hard to believe that this is my 10th year at Edgewood College and my 19th year serving as a college president. In many ways, the last few years have been the happiest and most productive of my career. After much deliberation, Terri and I made the decision that this academic year will be my last in serving Edgewood College on a full-time basis as president. I made that announcement on September 10th at a College Assembly.

Board of Trustees

Jim Barr | Board Chair

Roberta Gassman

Fmr. President and CEO TDS Telecom

Senior Fellow UW Madison, School of Social Work

Gary Schaefer | Vice Chair

Mary Ellen Gevelinger, O.P.

Regional CEO Associated Bank

Prioress Dominican Sisters of Sinsinawa

Jan Eddy | Board Secretary

Jim Imhoff

Community Member

Neil Fauerbach MBA ‘05 | Treasurer

Chairman and CEO First Weber Group

Partner, Director of Business Development & Marketing Smith & Gesteland

Lucy Keane ‘84

Phil Blake | Past Chair

Nicole Kime

Partner Rippe Keane Marketing, Inc.

Partner Wisconsin Investment Partners

Faculty Edgewood College

Dan Carey

Mary Lawson

President Edgewood College

Potter Lawson, Inc.

Diane Ballweg ’75, MA ‘07

Senior Director The First Tee

President, Endres Foundation Aviation Instructor, Edgewood High School

Jay Burnette

Mark Lowry ‘77

Ann McCullough, O.P. Dominican Sisters of Sinsinawa

President Waukesha Bearings Corporation

Kim Schaefer ‘91

Denis Collins

CEO Great Wolf Resorts

Faculty Edgewood College

Deborah Schwartz

Dawn Crim

President Caritas Foundation

Associate Dean for External Relations UW-Madison School of Education

Kim Sponem, MBA ‘98

Barbara Dannhausen, O.P. ‘62

CEO/President Summit Credit Union

Dominican Sisters of Sinsinawa

Londa Dewey President The QTI Group

Enrique Gandara International Economic Development Consultant Wisconsin Departent of Agriculture Trade and Consumer Protection

Teresa (Tess) Welch Attorney Michael Best & Friedrich

Kathleen Woit Fmr. President Madison Foundation

Statements of Financial Position Assets

Cash and cash equivalents Short-term investments Restricted cash equivalents Student Accounts Receivable (less allowance for doubtful accounts of $205,000 for 2013 and $175,000 for 2012) Government grants receivable Other receivables Inventories Prepaid expenses Investments Investment in joint venture Beneficial interest in private foundation Student notes receivable (less allowance for doubtful notes of $88,250 for 2013 and $86,250 for 2012) Contributions receivable Note Receivable Property, plant, equipment, and library books, net Unamortized bond costs

Total Assets

2013

2012

21,158,467 1,989,247 340,536

23,872,816 -

1,991,551 98,274 230,764 257,140 450,917 25,651,598 127,040 13,987,500

2,066,751 79,597 243,246 215,831 530,436 21,077,855 190,550 13,375,000

850,219 279,796 390,299 54,577,812 95,860

900,234 553,468 431,933 53,001,410 107,092

122,477,020

116,646,219

511,668 185,661 3,275,363 271,465 2,856,631 495,353 11,855,000 893,599 20,344,740

687,868 681,614 3,594,836 427,085 2,844,076 235,690 12,705,000 893,599 22,069,768

61,974,955 15,198,663 77,173,618

54,432,790 10,561,242 64,994,032

5,490,647 19,468,015 102,132,280

10,812,715 18,769,704 94,576,451

122,477,020

116,646,219

Liabilities and Net Assets Liabilities

Accounts payable - operating Accounts payable - construction Accrued expenses Deposits held in custody for others Deferred tuition revenue Capital lease obligations Bonds payable Refundable U.S. government student loans Total Liabilities

Net Assets Unrestricted Undesignated Board designated Total Unrestricted Temporarily restricted Permanently restricted Total Net Assets

Total Liabilities and Net Assets

Financial Statements

Ye a rs E nd e d J u n e 30, 2 013 an d 2 012

Financial Statements

Fo r t h e Year E n ded J u n e 30, 2 013 Statement of Activities

Temporarily Permanently Operating Revenues Unrestricted Restricted Restricted Tuition and fees Less: Federal grants Institutional aid Net Tuition and Fees

Total

52,098,804 (325,932) (12,255,688) 39,517,184

- - - -

- - - -

52,098,804 (325,932) (12,255,688) 39,517,184

Sales and services of auxiliary enterprises 5,900,950 Gifts and private grants 194,304 Government grants and contracts 739,765 Investment income 73,075 Investment income beneficial interest operating - Long-term investment return designated for current operations 428,906 Other 289,069 Total Operating Revenues 47,143,253

- 877,731 - -

- - - -

5,900,950 1,072,035 739,765 73,075

233,333

-

233,333

207,022 2,369 1,320,455

- - -

635,928 291,438 48,463,708

1,129,338

(1,129,338)

-

-

48,272,591

191,117

-

48,463,708

Net assets released from restrictions Total Operating Revenues and Other Support

Operating Expenses Program Instruction 18,769,692 - - 18,769,692 Academic support 8,711,059 - - 8,711,059 Student services 6,078,200 - - 6,078,200 Public service 678,422 - - 678,422 Auxiliary enterprises 3,821,130 - - 3,821,130 Support

Institutional support 5,614,471 - - 5,614,471 Fundraising 864,099 - - 864,099 Allocable

Operation and maintenance 4,205,993 - - 4,205,993 Depreciation 2,462,076 - - 2,462,076 Interest 483,118 - - 483,118 Less: Allocated expenses (7,151,187) - - (7,151,187) Total Operating Expenses 44,537,073 - - 44,537,073 Change in Net Assets From Operating Activities

3,735,518

191,117

-

3,926,635

Long-term Investment return in excess (deficit) of amount designated for operations 1,137,421 Interest rate swap gains (losses) 395,915 Change in beneficial interest in private foundation -

577,659 - -

- - 612,500

1,715,080 395,915 612,500

Nonoperating Activities

Statement of Activities (continued)

Temporarily Permanently

Unrestricted Restricted Restricted Investment income beneficial interest - capital related - Change in equity in joint venture (63,510) Gifts and private grants for long-term endowment - Gifts and private grants for long-lived capital items 45,000 Net assets released from restrictions - plant 6,929,242

Total

466,667 -

- -

466,667 (63,510)

-

85,811

85,811

371,731 (6,929,242)

- -

416,731 -

Change in Net Assets From Nonoperating Activities

8,444,068

(5,513,185)

698,311

3,629,194

Change In Net Assets

12,179,586

(5,322,068)

698,311

7,555,829

64,994,032

10,812,715

18,769,704

94,576,451

77,173,618

5,490,647

19,468,015

102,132,280

Net Assets - Beginning of Year

Net Assets - End of Year

Financial Statements

Fo r t h e Year E n ded J u n e 30, 2 012 Statement of Activities

Temporarily Permanently Operating Revenues Unrestricted Restricted Restricted Tuition and fees 48,114,181 Less: Federal grants (407,516) Institutional aid (11,033,604) Net Tuition and Fees 36,673,061 Sales and services of auxiliary enterprises 5,771,057 Gifts and private grants 180,946 Government grants and contracts 773,829 Investment income 100,451 Investment income beneficial interest operating - Long-term investment return designated for current operations 400,448 Other 314,002 Total Operating Revenues 44,213,794 Net assets released from restrictions 1,317,546 Total Operating Revenues and Other Support

45,531,340

Total

- - - - - 886,912 - 2,894

- - - - - - - -

48,114,181 (407,516) (11,033,604) 36,673,061 5,771,057 1,067,858 773,829 103,345

241,667

-

241,667

188,810 - 1,320,283 (1,317,546)

- - - -

589,258 314,002 45,534,077 -

2,737

-

45,534,077

Operating Expenses Program Instruction 17,958,458 - - 17,958,458 Academic support 8,672,674 - - 8,672,674 Student services 5,890,793 - - 5,890,793 Public service 613,792 - - 613,792 Auxiliary enterprises 3,919,472 - - 3,919,472 Support

Institutional support 5,841,583 - - 5,841,583 Fundraising 822,605 - - 822,605 Allocable

Operation and maintenance 4,204,898 - - 4,204,898 Depreciation 2,329,814 - - 2,329,814 Interest 559,113 - - 559,113 Less: Allocated expenses (7,093,825) - - (7,093,825) Total Operating Expenses 43,719,377 - - 43,719,377 Change in Net Assets From Operating Activities

1,811,963

2,737

-

1,814,700

(286,280) -

- -

(881,189) (467,900)

-

(1,195,462)

(1,195,462)

483,333

-

483,333

Nonoperating Activities Long-term Investment return in excess (deficit) of amount designated for operations (594,909) Interest rate swap gains (losses) (467,900) Change in beneficial interest in private foundation - Investment income beneficial interest capital related -

Statement of Activities (continued)

Temporarily Permanently

Unrestricted Restricted Restricted Change in equity in joint venture Gifts and private grants for long-term endowment Gifts and private grants for long-lived capital items Fixed asset disposal Reclassifications Change in Net Assets From Nonoperating Activities Change In Net Assets Net Assets - Beginning of Year

Net Assets - End of Year

Total

(74,049)

-

-

(74,049)

-

-

124,593

124,593

343,061 460,600 - (799,840) - 5,025 (5,025)

803,661 (799,840) -

(1,593,637)

662,678

(1,075,894)

(2,006,853)

218,326

665,415

(1,075,894)

(192,153)

64,775,706

10,147,300

19,845,598

94,768,604

64,994,032

10,812,715

18,769,704

94,576,451

Financial Statements

Fo r t h e Ye a rs E n ded J u n e 30, 2 01 3 an d 2 012 Statements of Cash Flows

Cash Flows From Operating Activities

2013

2012

Change in net assets 7,555,829 Adjustments to reconcile change in net assets to net cash flows from operating activities Depreciation 2,462,076 Bond cost amortization 11,232 Realized and unrealized (gains) loss on investments (1,934,521) (Gain) loss on investment in joint venture 63,510 Fixed asset disposal - Unrealized (gain) loss on interest rate swap agreements (395,915) Changes in assets and liabilities Prepaid Expenses 79,519 Receivables 69,005 Inventories (41,309) Accounts Payable (176,200) Accrued Expenses 76,442 Deposits held in custody of others (155,620) Deferred Revenue 12,555 Contributions Receivable 273,672 Beneficial interest in private foundation (612,500) Contributions restricted for long-term investment and plant (1,197,438) Net Cash Flows From Operating Activities 6,090,337

(192,153)

2,329,814 11,959 540,967 74,049 799,840 467,900 (15,107) (355,034) 37,887 (12,716) 216,950 210,615 31,621 662,537 1,195,462 (1,141,256) 4,863,335

Cash Flows From Investing Activities Changes in restricted cash equivalents Purchases of property, plant, equipment, and library books Proceeds from investments sold Purchases of investments Note receivable payments received Loans advanced to students Principal collections on loans to students Net Cash Flows From Investing Activities

(340,536) (4,130,026) 29,115,949 (33,744,418) 41,634 (118,300) 168,315 (9,007,382)

(8,540,877) 23,659,871 (17,412,953) 38,918 (88,250) 149,062 (2,194,229)

1,182,638 (850,000) (129,942) 202,696

1,141,256 (1,650,000) (78,989) (587,733)

(2,714,349)

2,081,373

23,872,816

21,791,443

21,158,467

23,872,816

477,179

553,174

185,661 393,757

681,614 250,330

Cash Flows From Financing Activities Contributions received restricted for long-term investment and plant Principal payments on bonds Principal payments on capital leases Net Cash Flows From Financing Activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year

Cash and Cash Equivalents - End of Year Supplemental Disclosure of Cash Flow Information Interest Paid

Noncash Investing and Financing Activities Assets acquired with construction payables Assets acquired by capital lease

Number of Students

2012–2013 $997,808 Scholarships $941,895 Capital $283,241 Program Support $140,588 Unrestricted $120,606 Other - Athletics, Students Orgs, Agency

Approximately 3,000 students on Monroe Street Campus, Deming Way Campus, and Online

Student to Faculty Ratio

13:1

Who Supports Edgewood College?

2012–2013 1,120 Alumni 397 Friends 148 Parents 124 Businesses, Organizations, Foundations 61 Faculty/Staff, Students, Board

75%

More than 75% of our classes have fewer than 20 students, and our average class size is 15

Number of Programs

60 MAJORS 40 MINORS

College and Donor Support of Students

30% 25% 58% 99% 120

More than 60

of our full-time undergraduate students are from families with annual incomes of $50k or less

More than 40

of full-time freshmen are first in their families to attend college increase in institutional funding for students since 2008 of full-time undergraduate students received financial aid in 2012–2013

120 unique annual and endowed scholarship funds

from private donors support 195

students

Average Scholarship Award is $3,241

Student Organizations

Over

50

student-led social, educational, professional, and service organizations including, Student Government, Campus Activities Board, newspaper and literary magazine, College Ministries, Habitat for Humanity, Black Student Union, and more.

Study Abroad Edgewood College students have recently studied in Argentina, Australia, China, Czech Republic, Finland, Ireland, Italy, Malta, Mexico, The Netherlands, New Zealand, Spain, Sweden, and the United Kingdom. Opportunities to study, volunteer, and intern are available in more than 42 countries.

By the Numbers

The Impact of Giving

Fo r li s t s o f d on o r n ames , in clu din g S r. Mary N o na McG re al S o ciety members , pleas e vis it w w w . e d g e w o o d.edu , an d click o n ‘G ive.’

1000 Edgewood College Drive Madison, WI 53711-1997 608.663.4861 | 800.444.4861 www.edgewood.edu