Vanguard University - Annual Report 2013

VANGUARD UNIVERSITY ANNUAL REPORT / 2012 – 2013

MESSAGE FROM THE PRESIDENT:

AT VANGUARD YOUR STORY MATTERS. WHERE HAVE YOU BEEN? WHAT ARE THE EXPERIENCES GOD HAS USED TO SHAPE AND PREPARE YOU? WE CARE ABOUT YOUR STORY, ABOUT WHO GOD IS MAKING YOU TO BE. AND WE WANT TO EQUIP YOU— TO GIVE YOU THE SKILLS, KNOWLEDGE, AND EXPERIENCE YOU NEED—FOR THE JOURNEY GOD HAS SPECIFICALLY FOR YOU.

I am honored and elated to begin my tenure as Vanguard University’s tenth president! Having been a part of this community for so long, I have come to understand the power and the grace that is at the heart of the Vanguard University experience. As a student, a professor, a dean, and now as president, I have sought my whole adult life to stay connected to the University in some way because of its importance in my life.

This year saw the development of a number of exciting projects on Vanguard’s campus. The Veterans Courtyard was completed, and work began on the renovation of the soccer complex. We’re beginning a major transformation of the Scott Academic Center, and alumni can anticipate the completion of the forthcoming Alumni Courtyard. I’m so proud of the sense of God’s presence and the life that’s on campus, and I’m grateful for God’s provision in our continued improvement of it.

We can also celebrate Vanguard’s 94-year faith heritage as an Assemblies of God institution, and our rootedness in the commitment of the Assemblies of God to higher education. I’m proud of the way we seek to cultivate the whole person in the students, whether traditional undergraduates or graduate professionals. We seek to take a holistic approach to education that sees the student not merely as the object of an academic delivery system, but also as a subject of care and character formation. The administration, faculty, and staff are all engaged in a relationship with the student; we have the desire to mentor and interact with students outside the classroom in order to help them become what God has made them to be.

I am proud of the fact that we believe we are on a mission, because we are: Vanguard University is equipping students for a spirit-empowered life of Christ-centered leadership and service. As you read this Annual Report, I pray that you see our mission reflected in the stories that we commemorate on these pages.

DR. MICHAEL J. BEALS PRESIDENT

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FAITH, WORKS AND LEARNING... CHRIST-CENTERED HIGHER EDUCATION FOR THE 21ST CENTURY

:beyond academics “AT VANGUARD UNIVERSITY, RIGOROUS ACADEMICS ARE WOVEN TOGETHER WITH OPPORTUNITIES FOR STUDENTS TO LIVE BOLD LIVES OF FAITH, RESULTING IN GRADUATES WHO ARE READY TO PURSUE GOD’S WORK WITH INTELLIGENCE, PASSION, AND CONVICTION” — DYLAN CHRISTENSON ’06, MA ’09

While a student at Vanguard, Dylan Christenson ’06, MA ’09 was encouraged to apply what he was learning to experiences that challenged his faith and left him with a deeper yearning to advance the kingdom of Christ in the developing world.

“Vanguard was so full of talented and creative people who were passionate about their faith,” Dylan says. “At Vanguard, I learned to apply my faith globally.” While a student, Dylan traveled to El Salvador to work with ENLACE, a community-based missions organization founded by alumni Ron ’90 and Michelle (Negron ’93, MA ’97) Bueno. He had been connected to ENLACE by anthropology professor Jamie Huff and Linda Hartzell, who emphasized missions work that served others in the developing world with projects of simple but lasting significance.

Dylan’s experiences in El Salvador inspired him to pursue a doctorate in civil engineering, and his education at Vanguard prepared him for the demanding graduate study. His area of research focuses on biological solutions to the problem of impure drinking water, a concept with obvious applications in the developing world. His PhD will allow him to cultivate expertise in the field itself, and then use that knowledge to lead students on the kind of trip he went on while at Vanguard—carrying on the University’s tradition of strong academics serving the cause of Christ.

THE LEARNING RELATIONSHIPS THAT ARE FORMED DURING THIS SHARED QUEST WILL LAST FOR A LIFETIME. THIS IS THE VANGUARD LEARNING EXPERIENCE.

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OUTREACH MINISTRIES

:beyond the expected VANGUARD UNIVERSITY’S COMMITMENT

Vanguard alumna Lynette Alegria ’12 recently completed a journey that took

TO A CHRIST-CENTERED COMMUNITY

her to 11 different countries over a period of 11 months. She participated in a

PURSUING A SPIRIT-EMPOWERED LIFE

missions trip called the World Race, sponsored by the organization Adventures in

COMPELS ITS MEMBERS TO RECOGNIZE

Missions. The official aim of the trip was simple: to connect teams for a month of

THE REALM OF GOD’S INFLUENCE

work in each country, partnering alongside organizations, churches, and pastors

EVERYWHERE, AND TO COMMIT

in order to serve the communities there.

THEMSELVES TO EMPOWERING IT.

“It was amazing, ridiculous, awesome,” she says. “I got to do everything. I did manual labor, I lived in an orphanage, I spent a month evangelizing villages in India.” The trip quite literally opened up the world to Lynette, giving her the chance to see not just the range of beauty and suffering in the world, but also how diversely God’s grace serves it. Her journey across the globe was guided beyond the expected by the large and small ways in which God moved. “I saw how the Lord cares for intricacies and detail,” says Lynette. “He cares for that one person.”

. . . HIS SP IRIT IS IN US, G UID ING , COMFORTING , AND EQUIP P IN G U S F OR THE NEX T CHAP TER OF OUR STORY . . .

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THE NEXT GENERATION OF CHRISTIAN LEADERS

:beyond leadership AFTER EIGHT YEARS IN THE MARINE CORPS, GABE CORONA ’13 ALREADY POSSESSED MANY OF THE QUALITIES OF A GOOD LEADER: CONVICTION, DISCIPLINE, HONOR. AT VANGUARD, THESE QUALITIES WERE REFINED IN GABE AND FOUND THEIR TRUEST EXPRESSION.

Gabe became involved in the Veterans Resource Center after his arrival on campus, and he was soon the president of the Vanguard Veterans Club, leading meetings and soliciting other veterans on campus to join. “We want to create an awareness for vets,” he says. “We want them to know that they’re welcome here, and cared for.”

Gabe’s vision for helping military veterans is expanding beyond Vanguard. He has just become the new commander of American Legion Post 455, a branch of the veterans organization that had lain virtually dormant for years. Gabe wants his revitalized branch of the American Legion to renew its commitment to uniting and supporting veterans, especially those returning from active duty in the Middle East.

He intends to ensure that the veterans in Post 455 will benefit from the knowledge he’s acquired at Vanguard as a kinesiology major. His work in this area will particularly bless veterans who return from overseas with bodies that are injured or disabled. Gabe sees his leadership with the Veterans Resource Center at Vanguard and the American Legion as a continuation of his military mission: to meet the needs of others with a servant’s heart.

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FOLLOW THE EXAMPLE OF CHRIST

:beyond integration AT VANGUARD UNIVERSITY, THE INTEGRATION OF FAITH AND LIFE IS AN ESSENTIAL FACT OF THE SPIRITFILLED EDUCATION, AND IT LEADS GRADUATES TO CAREERS THAT BLEND INNOVATION AND AMBITION WITH A DESIRE TO FOLLOW THE EXAMPLE OF CHRIST.

Erin (Bongiorno) Donovan ’03 is one such graduate. She is the Executive Director for the non-profit HopeSprings (www.hopesprings.org), which is located in Baltimore, MD. “When people think of an AIDS epidemic, they often think of Africa,” says Erin. “But we have a ‘quiet’ epidemic right here in the United States. In Baltimore, 1 in 40 adults is HIV-positive.”

HopeSprings seeks “to awaken, equip, and engage the church to respond to the HIV pandemic” in that city. Erin explains how HopeSprings is unique: “We train volunteers from churches in the area, and plug them into HIV provider organizations, including clinics, enabling Christians to serve the people of the city in a smart way. Our model has been recognized as very unique and very effective by major HIV health organizations.” Indeed, Erin’s model is Christ’s model—she and her volunteers minister to the whole person, giving themselves completely to a merciful generosity, without judgment or condition.

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GLOBAL CENTER FOR WOMEN AND JUSTICE

:beyond the classroom “VANGUARD UNIVERSITY PRIDES ITSELF ON THE DEEP INVESTMENTS THAT FACULTY MAKE IN THE LIVES OF STUDENTS, AND ON THE WAY THESE RELATIONSHIPS ALLOW STUDENTS TO BE INFLUENCED BY THEIR EDUCATION LONG AFTER THEY LEAVE THE CLASSROOM.

Melissa Smith* was mentored at Vanguard University by Sandra Morgan, the director of the Global Center for Women and Justice. While a student, Melissa travelled to Athens, Greece on a trip arranged by Morgan in order to minister to women working in legal brothels there. “That trip changed my life, physically, mentally, and emotionally,” says Melissa. She immediately involved herself in the mission of the Center, volunteering at the annual Ensure Justice Conference and following the lead of Sandra Morgan, whose strength in the fight against sex trafficking she has emulated.

Melissa began looking for a way to combine each of her motivating interests: a heart for service, and a mind for women’s justice, and she found it when she met a Federal Agent who told her she would be a perfect fit for a job in the field. Melissa wasted no time. The day after her Vanguard graduation, she was working full-time as a Special Agent investigating human trafficking. Melissa used her education at Vanguard University – and the tangible exposure to human affliction that it afforded her – to prepare for a life on the front lines of the battle against sexual slavery. Her time at Vanguard opened her eyes to a vicious problem in the world, and her relationship with Sandra Morgan equipped her to understand it and train for a life of fighting it. *Name has been changed due to the sensitive nature of her position.

. . . O U R U NDE R S TA ND ING OF THE WORLD — INFORMS AND D EEP ENS OUR FAITH, BR I NGI NG CO L O R A ND LIFE IN SURP RISING WAYS . . .

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LETTER FROM VICE PRESIDENT FOR BUSINESS AND FINANCE: As we look back on Dr. Michael Beals’ inaugural year as president, we are optimistic about the vision for Vanguard’s future growth that is rooted in a mature fiscal management approach as well as a strong spiritual foundation.

For the fifth consecutive year, Vanguard University is pleased to report a significant increase in Net Assets, with most of the growth in unrestricted net assets. We have continued to pay down debt while still being able to improve capital facilities. Our consistent focus on review and improvement of our systems and alignment of our budget with University priorities is resulting in steady progress campus-wide.

We remain committed to careful stewardship as a primary motivator in development and monitoring of University assets. Our most recent audit by Moss-Adams stated, “Management has continued to improve the financial performance of the University.

It has been tasked with balancing improvements to faculty and staff salaries, major maintenance needs of campus facilities, increasing net assets, and continuing to reduce debt. Proper focus on these initiatives, along with increased enrollment, has resulted in continuing improvement.”

We look to the new fiscal year with optimism as our strong Christ-centered leadership team continues to move the university “Beyond the Horizon” to equip our students to live spirit-empowered lives.

MRS. LETTIE COWIE VICE PRESIDENT FOR BUSINESS AND FINANCE

F OR A CO PY O F TH E R E PO RT O F I NDE PEND ENT AUD ITORS AND CONSOLID ATED FINANCIAL STATEMENTS P L EAS E CO NTA CT L E TTI E CO W I E , V I CE P RESID ENT F OR BUSINESS AND FINANCE AT 714.966.5484.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

YEAR ENDED JUNE 30,

2013

2012

ASSE T S: Cash and cash equivalents

$ 6,939,299

$ 8,585,402

Student accounts receivable, net of allowance of $294,679 and $750,692 as of June 30, 2013 and 2012, respectively

1,215,013

622,934

Estate receivable

654,770

1,278,045

Prepaid expenses

592,940

520,387

Promises-to-give 452,255 78,212 Investments 4,125,681 3,715,934 Student loans receivable, net of allowance of $380,620 and $300,000 as of June 30, 2013 and 2012

2,000,440

2,058,745

Other assets

1,425,124

1,445,599

Land, buildings, and equipment, net of depreciation 26,714,282 25,833,811 TOTAL ASSETS

$ 44,119,804

$ 44,139,069

$

$ 1,018,411

L IABIL IT IE S: Accounts payable

454,114

Accrued expenses and other liabilities

2,292,709

2,033,398

Deposits and deferred revenue

1,866,213

1,316,762

Student refundable credits

19,484

1,532,417

Tuition remission liability

342,695

334,237

Notes payable 23,152,945 25,980,401 Perkins loan liability

1,861,680

1,980,523

Trust and remainder life obligations

385,266

501,565

TOTAL LIABILITIES

$ 30,375,106

$ 34,697,714

N E T ASSE T S: Unrestricted net assets

5,225,787

2,431,914

Temporarily restricted

5,465,829

4,256,232

Permanently restricted

3,053,082

2,753,209

Total net assets

13,744,698 9,441,355

TOTAL LIABILITIES AND NET ASSETS

$ 44,119,804

$ 44,139,069

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CONSOLIDATED STATEMENT OF ACTIVITES

YEAR ENDED JUNE 30,

2013

SU P P O RT AN D RE V E N U E :

Student tuition and fees

TEMPO RA RILY RES TRICTED

UNRES TRICTED

$ 49,843,321

$

—

PERMA NENTLY RES TRICTED

$

—

TOTAL

$ 49,843,321

Less: institutional scholarships (18,019,622)

—

— (18,019,622)

Auxiliary services 8,729,334

—

— 8,729,334

NET REVENUE 40,553,033

—

— 40,553,033

Contributions and private grants

428,638

1,888,857

Other income 1,052,058

299,873

933

2,617,368

— 1,052,991

Federal grants

9,750

—

—

9,750

Investment income

8,400

—

—

8,400

Net assets released from restrictions: Satisfaction of donor restrictions

1,036,670 (1,036,670)

—

—

TOTAL SUPPORT AND REVENUE 43,088,549 853,120 299,873 44,241,542

O P E RAT IN G E X P E N SE S: Program services:

Instructional 13,399,958

—

— 13,399,958

Academic support 1,272,498

—

— 1,272,498

Student services 6,206,915

—

— 6,206,915

Auxiliary services 4,356,571

—

— 4,356,571

Institutional support 14,220,623

—

— 14,220,623

Fundraising 850,465

—

— 850,465

TOTAL OPERATING EXPENSES 40,307,030

—

— 40,307,030

Support activities:

Change in net assets from operations

2,781,519

853,120

299,873

3,934,512

Other changes in non—operating activities:

Endowment investment income

— 292,058

Transfer and restoration of underwater

endowment balances 22,354 (22,354)

— 292,058 —

—

Loss on sale of assets

(10,000)

—

—

(10,000)

Net change in split—interest agreements

—

86,773

—

—

12,354 356,477

Change in net assets before reclassification

2,793,873

1,209,597

— 368,831

299,873

4,303,343

Reclassification of endowment corpus

—

—

—

—

Change in net assets

2,793,873

1,209,597

299,873

4,303,343

Net assets, beginning of year

2,431,914

4,256,232

2,753,209

9,441,355

NET ASSETS, END OF YEAR

$ 5,225,787

$ 5,465,829

$ 3,053,082

$ 13,744,698

CONSOLIDATED STATEMENT OF ACTIVITES

YEAR ENDED JUNE 30,

2012

SU P P O RT AN D RE V E N U E :

TEMPO RA RILY RES TRICTED

UNRES TRICTED

Student tuition and fees

$ 45,343,507

Less: institutional scholarships

$

—

PERMA NENTLY RES TRICTED

$

—

TOTAL

$ 45,343,507

(17,091,148)

—

— (17,091,148)

Auxiliary services 8,367,974

—

— 8,367,974

NET REVENUE 36,620,333

—

— 36,620,333

Contributions and private grants

1,479,170

1,248,706

133,239

2,861,115

Other income 950,502

4,388

— 954,890

Federal grants 115,111

—

— 115,111

Investment income 17,431

—

— 17,431

Net assets released from restrictions: Satisfaction of donor restrictions

773,937

(773,937)

—

—

TOTAL SUPPORT AND REVENUE 39,956,484 479,157 133,239 40,568,880

O P E RAT IN G E X P E N SE S: Program services:

Instructional

$ 12,180,103 $

— $

— $ 12,180,103

Academic support 1,003,430

—

— 1,003,430

Student services 6,068,406

—

— 6,068,406

Auxiliary services 4,281,811

—

— 4,281,811

Institutional support 13,806,396

—

— 13,806,396

Fundraising 514,499

—

— 514,499

37,854,645

—

— 37,854,645

Support activities:

TOTAL OPERATING EXPENSES

Change in net assets from operations

2,101,839

479,157

133,239

2,714,235

Other changes in non—operating activities:

Endowment investment (loss)

— (76,547)

Transfer and restoration of underwater

endowment balances (8,426)

8,426

— (76,547) —

—

Loss on sale of assets

(30,658)

—

—

(30,658)

Net change in split—interest agreements

—

(60,572)

—

(60,572)

(39,084) (128,693)

Change in net assets before reclassification

2,062,755

Reclassification of endowment corpus

1,000,000

Change in net assets

3,062,755

350,464

(866,761)

2,546,458

Net assets, beginning of year

(630,841)

3,905,768

3,619,970

6,894,897

NET ASSETS, END OF YEAR

$ 2,431,914

350,464

— (167,777)

133,239

2,546,458

— (1,000,000)

—

$ 4,256,232

$ 2,753,209

$ 9,441,355

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A S PECIAL THANK YOU TO EACH D ONOR AND FRIEND OF THE UNIVERSITY W HO M A DE IT P OSSIBLE TO SERVE 2,200 STUD ENTS WITH A HIG H QUALITY ED U C AT ION IN A CH RIST-CENTERED COMMUNITY. F OR A COMP LETE LIST OF D ONORS, P LEASE VISIT O U R DIG ITAL WALL OF HONOR AT G IVE.VANG UARD .ED U/D ONORS

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