2015-10-09T11:23:55-07:00 2014-06-30 990 2013-07-01 590936101 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY INC EMBR 3862266000 600 South Clyde Morris Boulevard Daytona Beach FL 32114 Randall Howard Senior Vice President & CFO 3862266499 2015-10-09 2013 2016-03-07 17:11:31Z Dr John P Johnson 600 South Clyde Morris Boulevard Daytona Beach FL 32114 399645009 0 X www.erau.edu X 1960 FL Embry-Riddle Aeronautical University is an independent, non-profit, coeducational university serving students motivated toward careers in aviation and aerospace. Campuses in Daytona Beach, Florida and Prescott, Arizona provide education in traditional settings, while a network of learning centers throughout the United States and abroad serve civilian and military students through ERAU-Worldwide. Embry-Riddle prepares graduates for productive careers and responsible citizenship with special emphasis on the needs of aviation, aerospace, engineering and related fields. The curriculum emphasizes communication and analytical skills, understanding the free enterprise system, extending the knowledge of aviation and aerospace, promoting ethical behavior, delivering continuing educational opportunities for adults, developing broadly educated individuals, and engaging in research that addresses needs in aviation and aerospace-related industries. See http://www.erau.edu/ for information. 17 16 6695 0 68755 0 7772777 9001499 372421585 379039670 1912000 7791716 2517638 801115 384624000 396634000 45824788 52005372 0 0 192410392 195921452 32676 45806 1772911 119614144 126181370 357882000 374154000 26742000 22480000 533108000 571041000 219319000 222708000 313789000 348333000 Embry-Riddle Aeronautical University is an independent, non-profit, coeducational university serving students motivated toward careers in aviation and aerospace. Campuses in Daytona Beach, Florida and Prescott, Arizona provide education in traditional settings, while a network of learning centers throughout the United States and abroad serve civilian and military students through ERAU-Worldwide. Embry-Riddle prepares graduates for productive careers and responsible citizenship with special emphasis on the needs of aviation, aerospace, engineering and related fields. The curriculum emphasizes communication and analytical skills, understanding the free enterprise system, extending the knowledge of aviation and aerospace, promoting ethical behavior, delivering continuing educational opportunities for adults, developing broadly educated individuals, and engaging in research that addresses needs in aviation and aerospace-related industries. See http://www.erau.edu/ for information. 0 0 273976328 52005372 379039670 Embry-Riddle Aeronautical University provided comprehensive education leading to undergraduate,graduate, and doctoral degrees, seminars, short courses and research activity to 30,071 part-time and full-time students. 0 0 0 273976328 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 1 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 1 1 1 1 0 0 1 1 0 0 0 1 325 0 1 6695 1 1 1 1 GM SN 0 0 0 1 1 0 0 0 1 0 X 17 16 0 1 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ FL X X X Embry-Riddle Aeronautical University Inc 3862266000 600 South Clyde Morris Boulevard Daytona Beach FL 32114 Mori Hosseini Board Member 5 0 X 0 0 0 James Henderson Board Member 5 0 X 0 0 0 Joseph Martin Board Member 3 0 X 0 0 0 Zane Rowe Board Member 3 0 X 0 0 0 John Amore Board Member 2 0 X 0 0 0 Kenneth Dufour Board Member 2 0 X 0 0 0 Charles Duva Board Member 2 0 X 0 0 0 Karen Holbrook Board Member 2 0 X 0 0 0 Ronald Keys Board Member 2 0 X 0 0 0 C Jeffrey Knittel Board Member 2 0 X 0 0 0 Arthur J Lichte Board Member 2 0 X 0 0 0 David O'Maley Board Member 2 0 X 0 0 0 Glenn S Ritchey Board Member 2 0 X 0 0 0 David Robertson Board Member 2 0 X 0 0 0 Jean G Rosanvallon Board Member 2 0 X 0 0 0 Jon Slangerup Board Member 2 0 X 0 0 0 Nicole Stott Board Member 2 0 X 0 0 0 John P Johnson President 50 0 X 1120635 0 0 Eric B Weekes Senior Executive Vice President, CFO 50 0 X 362028 0 0 John Watret Chancellor, Worldwide Campus 40 0 X 296419 0 0 Richard Heist Chief Academic Officer, Daytona Beach Campus 40 0 X 292647 0 0 Francis Ayers Chancellor, Prescott Campus 40 0 X 280200 0 0 Maj Mirmirani Dean 40 0 X 218685 0 0 Steven Ridder Director of Athletics 40 0 X 464287 0 0 Irene McReynolds Vice President Human Resources 40 0 X 367016 0 0 Eduardo Prieto Assoc Vice-President Enrollment Mgmt 40 0 X 289634 0 0 Rod Casto Assoc Vice-President Research & Development 40 0 X 267826 0 0 Christina Recascino Professor 40 0 X 255740 0 0 4215117 0 0 207 0 1 0 Perry McCall Construction Inc 6262 Greenland Rd Jacksonville FL 32258 Construction Services 14775126 Lockheed Martin 9221 Corporate Boulevard Rockville MD 20850 Research Services 3649623 Halifax Paving Inc PO Box 730549 Ormond Beach FL 32173 Asphalt Paving Services 3414834 Blackboard Inc PO Box 200154 Pittsburgh PA 15251 Educational Technology Services 3087008 Sodexo Inc and Affiliates 600 South Clyde Morris Blvd Daytona Beach FL 32114 Dining Services 2953454 66 5565 0 170274 0 4429499 4396161 1553886 9001499 Higher Education 611310 379039670 379039670 0 0 0 0 0 0 379039670 1811185 1811185 0 0 16806 16806 0 0 0 0 0 0 173171 0 0 0 173171 0 173171 0 0 173171 0 7071310 0 1107585 0 5963725 5963725 5963725 0 0 121151 170274 52396 68755 68755 0 0 0 0 0 0 0 2410217 1851028 559189 559189 0 0 0 396634000 387390575 68755 173171 0 0 52005372 52005372 0 0 0 0 4215117 0 4215117 0 0 0 0 0 144826143 112108493 31737006 980644 10623000 7990237 2562495 70268 25280929 19020150 6093679 167100 10976263 8257346 2646349 72568 0 0 0 0 314209 0 314209 0 187079 37079 150000 0 196000 0 196000 0 45806 45806 62000 0 62000 0 26042942 15403862 10556138 82942 2430658 1902526 521621 6511 7744728 4091667 3619007 34054 3425163 1856747 1561746 6670 0 0 0 0 5907549 2594454 3313095 0 9908443 6362692 3344886 200865 0 0 0 0 752137 456571 286548 9018 7020786 0 7020786 0 0 0 0 0 27046000 19676000 7370000 0 5257512 2236174 3021338 0 Fuel and oil 3769064 3607799 161265 0 Equipment Rental 17195330 9910342 7283736 1252 Rent 5394212 3796286 1597926 0 Miscellaneous 3527558 2662531 769814 95213 374154000 273976328 98404761 1772911 115470000 120303000 0 0 2724000 2868000 13967000 10002000 0 0 0 0 12450000 12595000 2615000 2908000 5435000 8989000 550325000 266118000 265822000 284207000 0 0 107651000 123170000 0 0 0 0 6974000 5999000 533108000 571041000 44508000 45704000 0 0 1891000 2440000 157765000 153321000 0 0 0 0 957000 2894000 0 0 14198000 18349000 219319000 222708000 X 279273000 308120000 15219000 19869000 19297000 20344000 313789000 348333000 533108000 571041000 X 22480000 13490000 0 0 0 -1426000 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 196000 0 0 196000 0 Schedule C, Part II-B, Line 1 The University retains lobbying firms at the state and federal levels. Within the state, our lobbying activity is primarily done in support of the Florida Resident Access Grant program, a program that provides a scholarship to students who reside in Florida and attend private institutions. A number of our undergraduates rely on this grant to support their education. At the federal level, our lobbying activity focuses on support of our research centers and other educational initiatives. Our federal lobbying efforts also focus on advocating for policy development within the Federal Aviation Administration [FAA] that will positively impact our students, as they progress through pilot or air traffic management educational programs - two areas heavily regulated by the FAA. We work to make the FAA aware of how potential policy changes affect our collegiate training programs. 73660000 1056000 15008000 2110000 0 0 87614000 63052000 1935000 9379000 706000 0 0 73660000 62356000 2122000 -832000 594000 0 0 63052000 48197000 1843000 12870000 554000 0 0 62356000 40964000 1574000 6390000 731000 0 0 48197000 0.63 0.23 0.14 0 0 7492000 0 7492000 344747000 0 132636000 212111000 0 0 0 0 152654000 0 105329000 47325000 45432000 0 28153000 17279000 284207000 0 0 Mutual Funds 108320000 F Deposits with Fiduciaries 14850000 F 123170000 0 Advances for student loans and financial aid 9977000 Student deposits and advance payments 8372000 18349000 X 359719000 13490000 0 0 0 13490000 346229000 0 50405000 50405000 396634000 323749000 0 0 0 0 0 323749000 0 50405000 50405000 374154000 Schedule D, Part V, Line 4 Endowment funds are used primarily for student scholarships. Schedule D, Part X, Line 2 The University is exempt from the federal and state income taxes under Section 501(a) of the Internal Revenue Code (the Code) as an organization described in Section 501(c)(3) of the Code. Accordingly, the financial statements do not include an income tax provision, except for certain taxable transactions. The University complies with the provisions of FASB ASC 740 (formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109 ("FIN48"). Under ASC 740, the University must recognize the tax benefit associated with tax positions taken for tax return purposes when it is more-likely-than-not that the position will be sustained. Management of the University does not believe there are any material uncertain tax positions and accordingly has not recognized any liability for unrecognized tax benefits. The University has filed for and received income tax exemptions in the jurisdictions where it is required to do so. Additionally, the University has filed Internal Revenue Service Form 990 tax returns as required and all other applicable returns in those jurisdictions where it is required. The University believes that it is no longer subject to U.S. federal, state and local, or non-U.S. tax examinations by tax authorities for years before 2010. However, the University is still open to examination by tax authorities from fiscal year 2010 forward. For the years ended June 30, 2014, 2013 and 2012, there was no interest or penalties recorded or included in the consolidated statements of activities. Earnings from unrelated business activities were immaterial for the years ended June 30, 2014, 2013 and 2012. Accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. Schedule D, Part XI, Line 4b $50,405,000 of Institutionally Funded Scholarship expenses were reported on the audited financial statements as a contra-revenue amount. Schedule D, Part XII, Line 4b $50,405,000 of Institutionally Funded Scholarship expenses were reported on the financial statements as a contra-revenue amount. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 The University publicizes its non-discrimination policy at multiple locations of the University's website, including the following pages: Admissions, Transfer Students, Campus Life, and Diversity & Inclusion. The non-discrimination policy is also published on the undergraduate applications (in both hard copy and electronic formats), in the Student Catalog, on University Information CD's, and in the University Mission Statement. Schedule E, Part I, Line 6 The University receives financial assistance from Federal and State agencies for student financial aid and academic research. East Asia and the Pacific 1 14 Program Services Higher Education 2508277 Europe (including Iceland and Greenland) 1 2 Program Services Higher Education 254181 2 16 2762458 1 0 1 0 0 0 Schedule F, Part I, Line 3 ERAU Deutschland GmbH - Equity Method; Embry-Riddle Aeronautical University Asia LTD - Consolidation Method X X X X X X X 1 ARIA Calls and Cards 717 W St German Street Saint Cloud MN 56301 Coordinates telephone fundraising activities 1 39378 45806 -6428 39378 45806 -6428 All States Blue Gold Gala 257215 145649 111566 0 0 0 0 0 43541 Golf Tournament 34210 24625 9585 0 0 7923 0 0 932 0 291425 170274 121151 0 0 7923 0 0 44473 52396 68755 1 Tuition Waivers 302 2508763 Scholarships 8742 45108612 Grants in Aid 484 4387997 Schedule I, Part I, Line 2 Financial Aid funds are awarded and monitored by the Financial Aid Department. Research awards are monitored by the Office of Sponsored Research Administration. X X X X X 1 1 X X X X 1 0 0 0 0 0 0 0 0 John P Johnson President 450992 0 200130 0 471939 0 22950 0 20406 0 1166417 0 0 Eric B Weekes Senior Executive Vice President, CFO 312738 0 50130 0 1200 0 22950 0 8423 0 395441 0 0 0 John Watret Chancellor, Worldwide Campus 266969 0 35130 0 1200 0 22950 0 20431 0 346680 0 0 0 Richard Heist Chief Academic Officer, Daytona Beach Campus 270277 0 25130 0 1200 0 22950 0 14721 0 334278 0 0 0 Francis Ayers Chancellor, Prescott Campus 250071 0 30130 0 6600 0 22950 0 276 0 310027 0 0 0 Maj Mirmirani Dean 214555 0 4130 0 1200 0 19562 0 251 0 239698 0 0 0 Steven Ridder Director of Athletics 412000 0 130 0 55337 0 22950 0 20431 0 510848 0 0 0 Irene McReynolds Vice President Human Resources 61948 0 0 0 306388 0 5542 0 4498 0 378376 0 0 0 Eduardo Prieto Assoc Vice-President Enrollment Mgmt 157627 0 3500 0 132500 0 14008 0 11167 0 318802 0 0 0 Rod Casto Assoc Vice-President Research & Development 170069 0 0 0 103515 0 14990 0 8911 0 297485 0 0 0 Christina Recascino Professor 259333 0 130 0 1200 0 22950 0 13134 0 296747 0 0 0 Schedule J, Part I, Line 1a For the President and his wife as approved by the compensation committee of the Board of Trustees and stated in President's employment contract given that it s customary for people serving in those positions to travel in first class. Cabinet members may also travel in first class but must be approved in advance by the President. When it is not feasible to travel commercial, charter travel may be used as approved by the President. Travel for Companions - Companions of Cabinet members when they participate in ERAU business and/or fund raising and when approved in advance by the President. President's wife when traveling for business related and/or fund raising purposes and as stated in President's employment contract. Tax indemnification and gross-up payments - For the President as approved by the compensation committee of the Board of Trustees and stated in the President's employment contract. Payments are reported on Part II, Column Biii. Housing allowance or residence for personal use - Housing allowance for the President as approved by the compensation committee of the Board of Trustees and stated in the President's employment contract. Housing allowance for the Director of Athletics/Head Basketball Coach and as stated in his employment contract. This is treated as fully taxable compensation and are reported on Part II, Column Biii. Health or social club dues or initiation fees - Dues for the President as approved by the compensation committee of the Board of Trustees and stated in the President's employment contract for business and fund raising purposes. Dues for the Chief Development Officer, Executive Vice-President/Chief Academic Officer and Chief Financial Officer as approved by the President for business and fund raising purposes. Schedule J, Part I, Line 4 Severance Payments: Irene McReynolds - $280,000; Eduardo Prieto - $114,719; Rod Casto - $80,618 A Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 54960719 Capital Improvements 0 0 0 B Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 49583229 Refund 1996 Bonds 0 0 0 C Volusia County Educational Facilities Authority 800000613 928836JQ9 2011-07-07 47545048 Refund 1999A&B Bonds 0 0 0 D Volusia County Educational Faciliies Authority 800000613 000000000 2013-11-08 29010659 Refund Series 2013 0 0 0 A 0 0 54960719 0 0 0 354198 1704664 0 48485933 0 0 2010 0 0 1 1 B 14415000 0 49583229 8171810 0 0 321020 1537876 0 0 43740473 0 0 1 1 1 C 3615000 0 47545048 4039500 0 0 561230 521903 0 0 42261522 0 1 0 1 1 D 0 0 29010659 2582000 0 0 165073 0 0 0 26263586 0 1 0 1 1 A 0 0 1 0 1 0 0 0.0073 0.0073 0 0 1 B 0 0 0 0 0 0 0 0 0 1 C 0 0 0 0 0 0 0 0 0 1 D 0 0 1 0 1 0 0 0.0146 0.0146 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 C 0 0 0 1 0 0 0 0 1 D 0 0 0 1 0 0 0 0 1 A 1 B 1 C 1 D 1 Schedule K, Part II, Line 2-08/18/2005 49,583,229 Volusia County Educational Facilities Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part II, Line 2-07/07/2011 47,545,048 Volusia County Educational Facilities Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part II, Line 2-11/08/2013 29,010,659 Volusia County Educational Faciliies Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part IV, Line 2c-08/18/2005 54,960,719 Volusia County Educational Facilities Authority Rebate computations completed 6/30/14 Schedule K, Part IV, Line 2c-08/18/2005 49,583,229 Volusia County Educational Facilities Authority Rebate computation completed 6/30/14 Schedule K, Part IV, Line 2c-07/07/2011 47,545,048 Volusia County Educational Facilities Authority Rebate computation completed 6/30/14 Schedule K, Part IV, Line 2c-11/08/2013 29,010,659 Volusia County Educational Faciliies Authority Rebate computations completed 6/30/14 Intervest Construction Inc Trustee Hosseini is a principal of Intervest Construction 468535 Approximately $350,000 were lease payments for office space and approximately $111,000 were utility payments on the leased space. These services were provided at fair value in the ordinary course of business. 0 HF Commercial Investments LLC Trustee Hosseini is a principal of HF Commerical LLC 258583 Lease payments for office space. These services were provided at fair value in the ordinary course of business. 0 MHK of Volusia County Inc Trustee Hosseini is a principal of MHK of Volusia County Inc 114841 Air charter services provided at fair value in the ordinary course of business. 0 X 12 12920 Sale of comparable properties X 80 Cost of donated property X 1465 cost of donated property X 2 1160424 Cost of donated property X 9 168356 Selling price of donated property X 10 1680 Cost of donated property X 2 220 Cost of donated property X Furnture and Fixtures 3 221 Cost of donated property X Equipment Machinery 15 144817 Cost of donated property X Gift certificates and real property 215 63006 Cost of donated property X Services 6 697 Cost of donated property 2 0 1 0 Form 990, Part VI, Section A, Line 3 The University's Prescott Campus delegated responsibility for building and grounds maintenance to a contractor, Sodexo LLC, with which it has an extensive and complex business relationship. Form 990, Part VI, Section B, Line 11b Form 990 was completed by University staff and forwarded to the Audit Committee of the Board of Trustees of Embry-Riddle Aeronautical University. The Audit Committee met and reviewed the form and University staff were invited to participate in order to answer questions. At the end of the session, the Audit Committee voted to approve the 990. After the meeting, a copy of the 990 was sent to the entire University's Board of Trustees. After allowing the Trustees time to review the form and ask questions, any material changes were incorporated into the document. The finalized document was filed with the IRS. Form 990, Part VI, Section B, Line 12c The University's Internal Audit Department annually sends out and receives conflict of interest disclosure forms from University employees and Board of Trustees. Moreover, actual or potential conflicts of interest are reviewed, evaluated, and monitored by the University's Office of General Counsel. Conflicts are either resolved or forwarded to Human Resources and the particular employee's supervisory chain of command for disciplinary action for an unresolved conflict of interest. Form 990, Part VI, Section B, Line 15 The University's Vice President of Human Resources and President review comparability data for all University top management employees, and the President is required to approve all salaries at or above $100,000. The Vice President of Human Resources provides salary and benefit comparability data to the Chairman of the Board of Trustees who reviews that data with the Executive Committee of the Board of Trustees in relation to salary and benefits of the President and CEO. Form 990, Part VI, Section C, Line 19 The University makes its governing documents, conflict of interest policy and financial statements available to the public upon request. The Form 990 and audited financial statements are disclosed on the University's website. Form 990, Part XI, Line 9 Loss on extinguishment of debt - VCEFA Series 2003 bonds were refunded by Series 2013 bonds on November 8, 2013. ERAU Deutschland GmbH Kurfuerstenstrasse 56 Berlin GM 10785 Higher Education GM 0 254181 N/A Embry-Riddle Aeronautical University Asia LTD 75 Bukit Timah Road 02 01 02 Boon Siew Building Singapore SN 069543 980681431 Higher Education SN 1930292 637758 N/A EMBRY-RIDDLE AERONAUTICAL UNIVERSITY ASIA LTD 150 CECIL STREET SINGAPORE SN 069543 980681431 HIGHER EDUCATION SN section 501(c)(3) SCHOOL N/A ERAU Holdings Inc 600 South Clyde Morris Boulevard Daytona Beach FL 32114 061638801 Holding Company FL C 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY ASIA LTD b 250000 CASH TRANSFER