Annual Report 2013-2014

ANNUAL REPORT

|

2013-2014

EDGEWOOD COLLEGE

MISSION E d g e wo o d C o l l e g e , rooted i n the D omi ni c an tradi ti on, engages s tu d e n ts wi th i n a co mmuni ty of l ear ners c ommi tted to bui l di ng a j u s t a n d c o mp a s s i o nate worl d. The C ol l ege educ ates s tudents fo r m e a n i n g fu l p e rs onal and profes s i onal l i v es of ethi c al l e a d e rs h i p , s e rvi c e, and a l i fel ong s earc h for truth.

IDENTITY S p o n s o re d b y th e S i n s i nawa D omi ni c ans , Edgewood C ol l ege i s a c o mmu n i ty o f l e a r ners that affi rms both i ts C athol i c heri tage a n d i ts re s p e ct fo r other rel i gi ous tradi ti ons . The l i beral arts a re th e fo u n d a ti o n o f al l our c urri c ul ar offeri ngs i n the humani ti es , a rts , s ci e n c e s , a n d p ro f es s i onal programs . C ommi tted to ex c el l enc e i n te a ch i n g a n d l e a r ni ng, we s eek to dev el op i ntel l ec t, s pi ri t, i m a g i n a ti o n , a n d h e a rt. We wel c ome women and men who refl ec t th e ri ch d i ve rs i ty o f th e worl d’s c ul tures and pers pec ti v es . We fos ter o p e n , ca ri n g , th o u g htful engagement wi th one another and an e n d u ri n g c o mmi tm e n t to s erv i c e, al l i n an educ ati onal c ommuni ty th a t s e e k s tru th , c ompas s i on, j us ti c e and partners hi p.

VISION To b e a c o l l e g e o f c hoi c e where s tudents are trans formed wi th i n a h i g h l y e n gaged, i ntegrated l ear ni ng c ommuni ty co mmi tte d to p e rsonal ful fi l l ment and the c ommon good.

FROM THE INAUGURAL ADDRESS

“SO WHAT ARE WE CALLED TO DO TODAY? First, we are called to apply best practices in teaching and learning‐‐to create an exceptional, challenging, and engaging student learning environment. Some of those practices are going to be proven: the central part of an Edgewood College education for many years has been the relationship between our faculty and our students, and that has been bolstered by engaging learning practices like study abroad, civic engagement, student research and internships that we know allow students to derive ever greater value from their educational experiences. Other practices will emerge over time, as we learn more about how students learn and as we learn how to apply technology to support student learning and to expand access. Above all, we will be scholars of teaching and learning. We will assess what we do, we will sustain what we do well, and we will seek and pursue promising practices as they emerge.

Second, we are called to articulate and to deliver on our unique impact on the greater Madison community. Edgewood College is an important institution in the greater Madison community, in our diocese, and in higher education. I’m not the face of the College, our faculty and staff aren’t the face of the College, and our students and alumni are not the face of the College. The face of Edgewood College is represented in the lives touched by those who have benefited from an Edgewood College education. We have the opportunity and the obligation to apply ourselves to meeting the needs of our local community, and I look forward to working with the many community leaders here today in living that out.

Third, we must strengthen our financial models to support this unique educational environment. We must redouble our efforts to make sure that an Edgewood College education is affordable to students and families. We must be diligent financial stewards and we must seek novel approaches to provide an education with deep engagement and timely

completion while making sure that every family’s investment in Edgewood College is worth every minute of time and every penny of their financial investment in us.

You read the same reports I do. You see that the focus of a college education seems to be around getting a job‐‐and that’s really important. We believe that our students should be well prepared for their first job after graduation. Recent results from our alumni survey suggests that we are doing very well on that measure. But our world and our community need more than that. Our world needs engaged informed citizens. It needs scholars determined to ask and explore answers to the complex questions we face. It needs servant leaders who are willing to contribute their communities in a variety of different ways. It needs creative thinkers, artists, and entrepreneurs who inspire us to look at the world differently. In short, our world needs, more than it ever has, those who have benefited from an Edgewood College education.

As we close today then, let us pledge to join in partnership and community. Let us commit today to study communally and to search contemplatively, recognizing that sometimes our best thinking and dreaming comes in quiet, still, solitary moments, and at other times in engaged partnership with those around us. Let us commit today to speak courageously and to relate transparently with each other. Guided by our motto Cor ad Cor Loquitur may we have the confidence to speak our truth and the humility to listen deeply to those truths shared by others.

Let us commit today to live authentically, guided by the 800 year old Dominican studium of study, reflection, and action‐‐ or as we describe it at Edgewood College, connecting learning, beliefs, and actions.

Let us commit today to live boldly, not in fear, but with the fire experienced by St. Catherine of Siena. We do God’s work when we challenge the narrow, the short-term focus, the pursuit of self-interest, and the false choices that were prevalent in both Catherine’s day and our own.

Let us commit today to dream globally and to collaborate intentionally, in the tradition of the venerable Fr. Samuel Mazzuchelli, a young Italian preacher who worked in partnership with the native peoples of the upper Midwest in building, literally and figuratively, the local church in this area.

Finally, let us commit today to honor our past by creating, ever anew, an Edgewood College that meets the needs of our world today and tomorrow. A college that strives every day to create a learning environment marked by excellence in teaching and learning. A college that lives as a community of engaged learners set ablaze by our shared search for the truth and our shared commitment to service. A college in the tradition of Dominic and Aquinas, with the liberal arts as the foundation and the context for all of our academic offerings. And a college that looks like the community we serve, where every single member of our faculty, staff, student body and community feels that they can be their best genuine self at Edgewood College.

That’s the Edgewood College our world needs. And that’s the Edgewood College I am so excited to work alongside each of you to create.”

– Dr. Scott Flanagan From the Inaugural Address October 24, 2014

BOARD OF TRUSTEES

1.

Kevin

Hayden CEO | Group Health Cooperative of South Central WI

9.

Phil

Blake Retired President | Madison Newspapers, Inc.

10.

Gary 2.

Lucy

Keane, ‘84, Secretary Partner | Rippe Keane Marketing, Inc.

Schaefer, Chair Regional CEO | Associated Bank

11.

Diane 3.

Mary

Ellen Gevelinger, O.P. Prioress | Sinsinawa Dominicans Welch Michael Best and Friedrich

K. Ballweg ’75, MA ‘07 President | Endres Manufacturing Company Foundation

4.

Tess

12.

Ann

5.

Barbara

13.

Jan

6.

Roberta

14.

Mary

7.

Nicole

15.

Ian

Dannhausen, O.P., ‘62 Director of Mission Resource Team | Sinsinawa Dominicans Gassman Senior Fellow | UW School of Social Work Kime Associate Professor, Biological Sciences | Edgewood College

Mccullough, O.P. Sinsinawa Dominican Eddy Retired CEO | computer software development companies Lawson Retired Vice President | Potter Lawson, Inc. Davies Professor, Spanish | Edgewood College

16.

Enrique 8.

Kim

Sponem, MBA ‘98 President | Summit Credit Union

Gandara Economic Development Consultant | Wisconsin Department of Agriculture & Consumer Protection

17.

Jim

Imhoff Chairman/CEO | First Weber Group

23.

Kim

18.

Neil

24.

Lauri

Fauerbach, MBA ‘05, Treasurer Partner, Director of Business Development/ Marketing | Smith & Westland Lowry, ‘77 Senior Director, East Territory | The First Tee

Schaefer, ‘91 CEO | Great Wolf Resorts Binius-Droster ‘92 Financial Advisor, Senior Vice President | RBC Wealth Management

19.

Mark

20.

Scott

Flanagan, President

Crim Associate Dean for External Relations | School of Education, UW-Madison

Not Pictured

Jim Barr, Past Chair Retired President/CEO | TDS Telecom

21.

Dawn

Jay Burnette President | Waukesha Bearings Corporation

22.

Londa

Dewey, Vice Chair President | QTI Group

MAJOR INITIATIVES AND GIFTS IN 2013-2014 In fall 2013, the College opened the newly renovated and expanded School of Nursing in DeRicci Hall. The cost of renovation totaled over $3 million, and the College received significant support from numerous donors to complete the project. The primary supporter of the renovation was the Henry J. Predolin Foundation, which provided over $2 million toward the costs. In recognition of this support as well as on-going contributions to student scholarships and additional capital improvements, on July 15, 2013 the College announced the formal creation of the Henry Predolin School of Nursing.

In October 2013, the Henry Predolin School of Nursing received a $1 million gift by the members of Group Health Cooperative of South Central Wisconsin to create the Group Health Cooperative of South Central Wisconsin Center for Primary Care Innovation. The gift will be used to develop the Center and engage and enlist Edgewood College nursing students and graduates in innovative and progressive models of primary care delivery.

In May 2014 the College announced the lead gift to its endowment fund supporting the visual and theatre arts. The gift from the Pleasant T. Rowland Foundation honors Diane Ballweg ’75 MBA ’07 for her leadership of and generosity to many of Madison’s cultural and arts organizations. At the request of Ms. Rowland, the theatre at The Stream has been named the Diane Ballweg Theatre.

QUICK FACTS

THE IMPACT OF GIVING $1,765,464 Program Support $1,669,216 Capital (37%) $855,536 Scholarships (19%) $138,277 Other - Athletics, Students Orgs, Agency (3%) $88,585 Unrestricted (2%)

NUMBER OF STUDENTS (39%)

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

STUDENT TO FACULTY RATIO

10:1

WHO SUPPORTS EDGEWOOD COLLEGE? 866 Alumni (52%) 460 Friends (27%) 128 Parents (8%) 116 Businesses, Organizations, Foundations (7%) 107 Faculty/Staff, Students, Board (6%)

COLLEGE AND DONOR SUPPORT OF STUDENTS

29 28%

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

68% 99%

increase in institutional funding for students since 2008

130

unique annual and endowed scholarship funds from private donors support 237 students in 2013-2014

%

of full-time freshmen are first in their families to attend college

of full-time undergraduate students received financial aid in 2013–2014

Average Scholarship Award is $3,502

More than 78% of our classes have fewer than 20 students, and our average class size is 15

78%

NUMBER OF PROGRAMS

60 MAJORS 40 MINORS More than 60 More than 40

STUDENT ORGANIZATIONS

50

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

STUDY ABROAD Edgewood College students have recently studied in Argentina, Austria, China, Czech Republic, France, Ghana, Ireland, Italy, Mexico, Morocco, Peru, Spain, Turkey, and the United Kingdom. Opportunities to study, volunteer, and intern are available in more than 50 countries.

F I N A N C I A L S TAT E M E N T S

STATEMENTS OF FINANCIAL POSITION YEARS ENDED JUNE 30, 2014 AND 2013 ASSETS Cash and cash equivalents Short-term investments Restricted cash equivalents Student Accounts Receivable, (less allowance for doubtful accounts of $205,000 for 2014 and 2013) 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 $95,750 for 2014 and $88,250 for 2013) Contributions receivable Note Receivable Property, plant, equipment, and library books, net Unamortized bond costs

2014 2013 20,758,052 21,158,467 6,139,550 1,989,247 497,240 340,536 2,106,095 1,991,551 126,229 98,274 264,805 230,764 158,138 257,140 631,899 450,917 29,273,784 25,651,598 65,706 127,040 15,341,367 13,987,500 824,556 1,872,688 346,631 54,405,669 85,390

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

132,897,799

122,477,020

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

590,835 125,080 3,288,668 495,645 3,201,545 391,757 10,975,000 893,599 19,962,129

511,668 185,661 3,098,012 448,816 2,856,631 495,353 11,855,000 893,599 20,344,740

NET ASSETS Unrestricted Undesignated Board designated Total Unrestricted

67,890,054 61,974,955 17,193,164 15,198,663 85,083,218 77,173,618

Total Assets LIABILITIES AND NET ASSETS

Temporarily restricted Permanently restricted Total Net Assets

Total Liabilities and Net Assets

6,175,663 21,676,789 112,935,670

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

132,897,799

122,477,020

F I N A N C I A L S TAT E M E N T S

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Temporarily Permanently OPERATING REVENUES Unrestricted Restricted Restricted Total Tuition and fees 53,732,579 - - 53,732,579 Less: Federal grants (358,226) - - (358,226) Institutional aid (13,187,059) - - (13,187,059) Net Tuition and fees 40,187,294 - - 40,187,294 Sales and services of auxiliary enterprises 5,878,742 - - 5,878,742 Gifts and private grants 164,046 1,323,085 - 1,487,131 Government grants and contracts 672,845 - - 672,845 Investment income 218,862 - - 218,862 Investment income beneficial interest - operating - 208,333 - 208,333 Long-term investment return designated for current operations 563,728 254,887 - 818,615 Other 318,528 24,850 - 343,378 Total Operating Revenues 48,004,045 1,811,155 49,815,200 Net Assets Released From Restrictions 1,396,742 (1,396,742) - Total Operating Revenues and Other Support 49,400,787 414,413 - 49,815,200

Temporarily Permanently OPERATING EXPENSES Unrestricted Restricted Restricted Total Program Instruction 18,736,210 - - 18,736,210 Academic support 9,641,477 - - 9,641,477 Student services 6,475,911 - - 6,475,911 Public service 651,855 - - 651,855 Auxiliary enterprises 3,769,006 - - 3,769,006 Support Institutional support 5,629,643 - - 5,629,643 Fundraising 896,369 - - 896,369 Allocable Operation and maintenance 4,357,100 - - 4,357,100 Depreciation 2,653,727 - - 2,653,727 Interest 440,457 - - 440,457 Less: Allocated expenses (7,451,284) - - (7,451,284) Total Operating Expenses 45,800,471 - - 45,800,471 Change in Net Assets from Operating Activities

3,600,316

414,413

-

4,014,729

872,611 - - - - 1,353,867 416,667 - - - - 857,907 1,220,541 - (2,242,216) 3,000 (3,000)

2,867,112 133,901 1,353,867 416,667 (61,334) 857,907 1,220,541

NON-OPERATING ACTIVITIES Long-term Investment return in excess (deficit) of amount designated for operations 1,994,501 Interest rate swap gains (losses) 133,901 Change in beneficial interest in private foundation - Investment income beneficial interest - capital related - Change in equity in joint venture (61,334) Gifts and private grants for long-term endowment - Gifts and private grants for long-lived capital items - Net assets released from restrictions - plant 2,242,216 Reclassifications -

-

Change in Net Assets from Non-operating Activities

4,309,284

270,603

2,208,774

6,788,661

Change in Total Net Assets

7,909,600

685,016

2,208,774

10,803,390

Net Assets - Beginning of Year

77,173,618

5,490,647

19,468,015

102,132,280

Net Assets - End of Year

85,083,218

6,175,663

21,676,789 112,935,670

F I N A N C I A L S TAT E M E N T S

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 Temporarily Permanently OPERATING REVENUES Unrestricted Restricted Restricted Total Tuition and fees 52,098,804 - - 52,098,804 Less: Federal grants (325,932) - - (325,932) Institutional aid (12,255,688) - - (12,255,688) Net Tuition and fees 39,517,184 - - 39,517,184 Sales and services of auxiliary enterprises 5,900,950 - - 5,900,950 Gifts and private grants 194,304 877,731 - 1,072,035 Government grants and contracts 739,765 - - 739,765 Investment income 73,075 - - 73,075 Investment income beneficial interest - operating - 233,333 - 233,333 Long-term investment return designated for current operations 428,906 207,022 - 635,928 Other 289,069 2,369 - 291,438 Total Operating Revenues 47,143,253 1,320,455 - 48,463,708 Net Assets Released From Restrictions 1,129,338 (1,129,338) - Total Operating Revenues and Other Support 48,272,591 191,117 - 48,463,708

Temporarily Permanently OPERATING EXPENSES Unrestricted Restricted Restricted Total Program Instruction 18,355,520 - - 18,355,520 Academic support 9,417,198 - - 9,417,198 Student services 6,246,805 - - 6,246,805 Public service 645,904 - - 645,904 Auxiliary enterprises 3,833,849 - - 3,833,849 Support

Institutional support 5,173,698 - - 5,173,698 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 - 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

577,659 - - 466,667 - - 371,731 (6,929,242)

- - 612,500 - - 85,811 - -

1,715,080 395,915 612,500 466,667 (63,510) 85,811 416,731 -

Change in Net Assets from Non-Operating Activities

8,444,068

(5,513,185)

698,311

3,629,194

Change in Net Assests

12,179,586

(5,322,068)

698,311

7,555,829

Net Assets - Beginning of Year

64,994,032

10,812,715

18,769,704

94,576,451

Net Assets - End of Year

77,173,618

5,490,647

NON-OPERATING ACTIVITIES

19,468,015 102,132,280

F I N A N C I A L S TAT E M E N T S

STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2014 AND 2013 STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to net cash flows from operating activities Depreciation Bond cost amortization Realized and unrealized gains on investments Loss on investment in joint venture Beneficial interest in private foundation Contributions restricted for long-term investment and plant Unrealized gain on interest rate swap agreements Changes in assets and liabilities Prepaid Expenses Receivables Inventories Accounts Payable Accrued Expenses Deposits held in custody for others Deferred tuition revenue Contributions receivable Net Cash Flows from Operating Activities

2014 10,803,390

2013 7,555,829

2,653,727 2,462,076 10,470 11,232 (3,365,116) (1,934,521) 61,334 63,510 (1,353,867) (612,500) (1,407,397) (1,197,438) (133,901) (395,915) (180,982) 79,519 (176,540) 69,005 99,002 (41,309) 79,167 (176,200) 324,557 38,441 46,829 (117,619) 344,914 12,555 (1,592,892) 273,672 6,212,695 6,090,337

CASH FLOWS FROM INVESTING ACTIVITIES Change in restricted cash and cash equivalents (156,704) (340,536) Purchases of property, plant, equipment, and library books (2,503,270) (4,130,026) Proceeds from investments sold 10,547,914 29,115,949 Purchases of investments (14,955,287) (33,744,418) Note receivable payments received 43,668 41,634 Loans advanced to students (172,917) (118,300) Principal collections on loans to students 198,580 168,315 Net Cash Flows from Investing Activities (6,998,016) (9,007,382) 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

1,407,397 (880,000) (142,491) 384,906

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

(400,415)

(2,714,349)

Cash and Cash Equivalents, Beginning of Year

21,158,467

23,872,816

Cash and Cash Equivalents, End of Year

20,758,052

21,158,467

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid

431,717

477,179

NONCASH INVESTING AND FINANCING ACTIVITIES Assets acquired with construction payables Assets acquired by capital lease

125,080 38,895

185,661 393,757

Net Change in Cash and Cash Equivalents

For lists of donor names, including Sr. Mary Nona McGreal Society members,please visit

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