2015-05-13T14:57:53-07:00 2014-06-30 366055558 Grant Thornton LLP 175 W Jackson Blvd FL 20 Chicago IL 60604 990 2013-07-01 362191242 CONCORDIA UNIVERSITY CONC 7087718300 7400 Augusta Street River Forest IL 603051499 Tom Hallett CFO 7082093350 2015-05-11 1 Bridget Roche P00666837 3126028068 2015-05-11 2013 2016-02-25 16:41:14Z Concordia University Chicago Tom Hallett 7400 Augusta Street River Forest IL 60586 77781388 0 X www.cuchicago.edu X 1864 IL Founded in 1864, Concordia University Chicago is a liberal arts-based Christian university located in River Forest, Illinois. Rooted in its Christian heritage of engaging knowledge and faith, the University aspires to be the destination university for all who seek to develop their full individual potential through a distinctive, innovative and dynamic environment of exploration, creativity and discovery for leading lives of servant-minded leadership. More than 5,000 full-time students are enrolled in more than 100 undergraduate, master's and doctoral programs. Concordia-Chicago ensures that 100 percent of undergraduate students receive some form of financial aid and actively develops additional need-based scholarship support for local students. It also manages outreach to historically underrepresented student populations, working specifically with elementary and middle school students and families to ensure they are prepared to enter college in the future. 16 16 1585 1143 0 0 2530165 5209024 73275570 72297726 -28378 51227 -156066 -173742 75621291 77384235 15355623 16549183 0 0 35645965 37153949 0 0 1397120 24198577 22032431 75200165 75735563 421126 1648672 59867510 63033782 50709560 51971593 9157950 11062189 As a distinctive, comprehensive university of The Lutheran Church Missouri Synod, centered in the Gospel of Jesus Christ, and based in the liberal arts, Concordia University equips men and women to serve and lead with integrity, creativity, competence, and compassion in a diverse, interconnected, and increasingly urbanized church and world. 0 0 60272992 16528109 65247348 Education, General and Other - Operation of higher education and instruction divisions including support programs devoted to religious education, encouragement and understanding for both Master's level and doctoral graduate students, as well as undergraduate students. (Fall 2013 Total Enrollment - 5,286) 4254743 0 4810140 College student room and board - Concordia University Chicago, like most other colleges/universities, provides room and board to its students. During this reporting period, the University dorms were near full capacity, with approximately 585 students living in campus residence halls. 3133037 0 233026 Conferences, Workshops, and Other University Events - Each fiscal year, Concordia University Chicago hosts several events which contribute to the accomplishment of the University's mission. Events include educational conferences, workshops, student led theatre productions and athletic events. Not only do these events enhance our students' educational experience, but they also help educate individuals from the overall community. The largest single event the University hosts each fiscal year is the Concordia University Chicago Early Childhood Teachers' Conference. This conference, held in the summer, invites current Early Childhood Teachers, many of whom are our graduates, to share and learn about new Early Childhood instructional approaches, etc. 1978572 0 2007212 Early Childhood Education, General/Other: Operation of childcare, early childhood, and primary programs for children, all of which includes a strong educational component, as well as a Christian core value component. Last year, the Early Childhood Center served nearly 400 children. 1978572 0 2007212 69639344 1 1 0 1 0 0 0 1 0 1 1 0 0 0 1 1 0 1 1 0 1 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 196 0 1 1585 1 0 0 0 0 0 1 1 0 0 0 0 X 16 16 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Tom Hallett 7082093350 7400 Augusta Street River Forest IL 603051499 Dr C Ross Betts Board Member 1 0 X 0 0 0 Mr Kirk Farney Vice Chair Board 3 0 X X 0 0 0 Rev Roger Gallup Board Member 1 0 X 0 0 0 Rev Dan Gilbert Chair Board 3 0 X X 0 0 0 Mr James Grebe Secretary Board 3 0 X X 0 0 0 Dr Debra Grime Board Member 1 0 X 0 0 0 Mr Eric Hiller Board Member 1 0 X 0 0 0 Mr E Theodore Lams Board Member 1 0 X 0 0 0 Mrs Marty Lintvedt Board Member 1 0 X 0 0 0 Mr Mark Muehl Board Member 1 0 X 0 0 0 Mr Chris Nelson Board Member 1 0 X 0 0 0 Mr Orlando Pabon Board Member 1 0 X 0 0 0 Mr Angel Sales Board Member 1 0 X 0 0 0 Rev Gerald Schalk Board Member 1 0 X 0 0 0 Dr Carl Springer Board Member 1 0 X 0 0 0 Mr Mark Stern Board Member 1 0 X 0 0 0 Dr John Johnson President/CEO/COO 48 2 X 244339 0 85483 Mr Tom Hallett Vice President/CFO 48 2 X 147570 0 37139 Mrs Cindy Simpson Sr Vice President 45 5 X 150129 0 27433 Ms Evelyn Burdick Vice President 50 0 X 151972 0 22088 Dr Craig Schilling Faculty 40 0 X 135269 0 7263 Dr Marilyn Reineck Vice President 50 0 X 140396 0 22872 Mr Alan Meyer Sr Vice President 50 0 X 150211 0 24124 1119886 0 226402 17 0 1 0 Ragnar Benson LLC 250 S Northwest Hwy Park Ridge IL 60068 Construction management 1039166 Franczek Radelet PC 300 S Wacker Dr Suite 3400 Chicago IL 60606 Legal services 381917 Perkins Coie LLP 1201 3rd Ave Ste 4900 Seattle WA 98101 Counsulting Services 145071 Spencer Fane Britt & Browne LL 1000 Walnut Ave Ste 1400 Kansas City MO 64106 Legal Services 133324 Chapman and Cutler LLP 111 W Monroe St Chicago IL 60603 Bond Counsel 124681 6 0 0 41415 1005647 2735128 1426834 33912 5209024 Tuition and Fees 611310 65247348 65247348 0 0 Room and Board 611310 4810140 4810140 0 0 Early Childhood Center 611600 2007212 2007212 0 0 Conferences and Other Campus Events 611710 233026 233026 0 0 0 0 0 0 72297726 30227 0 0 30227 0 0 0 0 0 0 0 0 160700 40118 365955 0 -205255 40118 -165137 0 0 -165137 0 21000 0 0 0 21000 21000 0 0 21000 10575 41415 31198 -20623 0 -20623 Student Phone/Campus Card 611710 12018 0 0 12018 0 0 0 0 12018 77384235 72297726 0 -122515 0 0 16528109 16528109 21074 21074 0 0 444409 101137 272029 71243 0 0 0 0 28378900 26678204 924135 776561 1739139 1585105 96121 57913 4790523 4351564 347720 91239 1800978 1681694 71467 47817 0 0 0 0 243542 0 243542 0 104193 0 104193 0 64374 64374 0 0 0 0 0 0 0 0 3283793 3283793 0 0 6428006 6428006 0 0 1448122 1281037 52347 114738 1041657 938588 80822 22247 0 0 0 0 2520788 2271362 195588 53838 879171 800873 48592 29706 0 0 0 0 0 0 0 0 1386213 0 1386213 0 0 0 0 0 2774012 2774012 0 0 749044 0 749044 0 Bad Debt and Collections 361798 361798 0 0 Student Orientation 209196 209196 0 0 Memberships 165175 165175 0 0 Other Bond Related Expenses 105788 0 105788 0 267559 114243 21498 131818 75735563 69639344 4699099 1397120 0 0 1897737 753794 2244483 4238877 3765647 4494079 7200 4800 0 0 503340 515073 0 0 3615685 4125094 99520488 52637135 45373071 46883353 0 0 0 0 942900 995190 0 0 1517447 1023522 59867510 63033782 6652164 5446719 0 0 4408480 4804531 29150000 16490000 0 0 0 0 5576324 17292355 3612362 6822793 1310230 1115195 50709560 51971593 X -6133850 -5195404 13772557 14662243 1519243 1595350 9157950 11062189 59867510 63033782 X 1648672 0 0 0 0 255567 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 64374 0 0 0 64374 0 Schedule C, Part II-B, Line 1 Paid amounts to lobbyist to help influence potential legislation and rules/regulations involving higher educational reforms and educational standards under the jurisdiction of the state legislative bodies and agencies. 0 0 X X X 0 18962501 936858 3253145 543037 462610 0 22146857 16744049 1301500 1688691 482550 289189 0 18962501 16699136 1204447 -456331 493831 209372 0 16744049 13518885 693026 3166185 518092 160868 0 16699136 11731088 591662 1817999 453876 167988 0 13518885 0.44 0.1 0.46 0 1 1 0 1919643 1919643 0 66075138 30864451 35210687 0 6954092 3987462 2966630 0 20284719 16670605 3614114 0 4286896 1114617 3172279 46883353 0 Refundable government student loan funds 718322 Due to Concordia University Foundation 209024 Interest rate swap agreement 187849 1115195 X Schedule D, Part III, Line 1 As stated in the University's audited financial statements, note B, "The University has a collection of art objects, most of which were contributed to the University. The value of these objects is not recorded in the accompanying statement of financial position. The University's Board of Regents has given the authority to sell a significant portion of the collection. While management has been given the authority, it does not currently intend to dispose any significant portion of these art objects. Management will sell or transfer ownership of an art object if it is ever determined that that art object no longer furthers the University's mission. Schedule D, Part III, Line 4 The University has a collection of art objects, most of which were contributed to the University without solicitation. Nearly all of these objects are paintings or sculptures; many share religious themes, which are consistent with the University's Lutheran Church-Missouri Synod heritage and belief. The objects help the University further its exempt status by providing an overall campus environment conducive of education and learning, acting as educational tools used to demonstrate varying artistic styles and themes, and providing a connection to the University's mission statement by demonstrating the values of "creativity, competence and compassion." Schedule D, Part V, Line 4 Donations given to Concordia University Foundation are for endowments that ultimately assist Concordia University's educational and religious activities. Donors have placed restrictions on the endowment payout in the following ways: 1) financial aid given to Concordia University, 2) support for Concordia University's Student Services and Academics, and 3) support of Concordia University's maintenance and operations of plant and University general operations. Schedule D, Part X, Line 2 The University and the Foundation are organizations described in Section 501(c)(3) of the Internal Revenue Code (IRC) of 1986, as amended and, as such, are exempt from federal income tax on income earned related to exempt activities under IRC Section 501(a). In addition, the IRC has determined that the University and Foundation are not private foundations within the meaning of Section 509(c) of the IRC. The FASB issued guidance that requires tax effects from uncertain positions to be recognized in the consolidated financial statements only if the position is more likely than not to be sustained if the position were to be challenged by a taxing authority. Management has determined there are no material uncertain tax positions that require recognition in the consolidated financial statements. The tax years ended 2011, 2012 and 2013 are still open to audit for both federal and state purposes. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 Concordia University Chicago publishes its policy of racial non-discrimination in local print media, on its website at CUChicago.edu and via recruitment materials distributed by the Office of Undergraduate Admission. Schedule E, Part I, Line 6 Concordia University serves as a pass-through grantor for several Federal Student Financial Assistance Programs. These Federal Programs include: Federal Perkins Loans Program, Federal Pell Grant Program, Federal Supplemental Education Opportunity Grant Program, Federal Work Study Program, and the Federal Education Loan Program. In addition to Federal Programs, Concordia University also participates in the Illinois Cooperative Work Study Grant Program. 1 East Asia and the Pacific Grantmaking Study Abroad Programs 10000 Europe (including Iceland and Greenland) Grantmaking Study Abroad Programs 11074 0 0 21074 Europe (including Iceland and Greenland) Study Abroad Programs 11074 Wire transfer 0 FMV 1 0 0 0 0 0 0 0 Schedule F, Part I, Line 2 The grants used outside of the United States are related to tuition and/or housing accommodations made by Concordia University Chicago on behalf of its students taking part in established study abroad programs. In these cases, Concordia has entered into agreements with various institutions of higher education in order allow its students to study at a university outside of the United States. These agreements facilitate the payment of tuition and accommodations by requiring the home institution to collect payment from the student and then forward that payment to the University outside of the US. Community Awards Banquet 34625 30050 4575 0 2284 2768 6283 0 4807 Presidential Gala 17365 11365 6000 0 0 5345 5345 0 4366 0 51990 41415 10575 0 2284 8113 11628 0 9173 31198 -20623 1 Student scholarships and fellowships 1477 16528109 0 Schedule I, Part I, Line 2 Student's eligibility to receive financial assistance from Concordia University Chicago is determined by the policy approved by the Board of Regents. On a basis of careful analysis of the financial statements, the Director of Financial Aid determines the amount of aid available from various sources. Next, the amount that the student and his or her family can reasonably be expected to provide is calculated. The difference is called "demonstrated need." Financial assistance is awarded based on the student's demonstrated need for that year. Concordia-Chicago provides scholarships. All recipients are unrelated except for tuition benefits provided under Concordia-Chicago's tuition grant program to eligible employees, their spouses, and dependents. This tuition grant program is in accordance with IRC section 117(d). Concordia University Chicago also provides student assistance through work-study. X 1 1 X X X 0 0 0 0 0 0 0 0 0 Dr John Johnson President/CEO/COO 244339 0 0 0 0 0 28436 0 57047 0 329822 0 0 0 Mr Tom Hallett Vice President/CFO 147570 0 0 0 0 0 14403 0 22736 0 184709 0 0 0 Mrs Cindy Simpson Sr Vice President 150129 0 0 0 0 0 14178 0 13255 0 177562 0 0 Mr Alan Meyer Sr Vice President 150211 0 0 0 0 0 12824 0 11300 0 174335 0 0 0 Ms Evelyn Burdick Vice President 151972 0 0 0 0 0 13299 0 8789 0 174060 0 0 0 Dr Marilyn Reineck Vice President 140397 0 0 0 0 0 5303 0 17569 0 163269 0 0 0 Schedule J, Part I, Line 1a IRS instructions to Form 990 require that the fair market value of housing provided to employees by their employers be reported on Form 990, Part VII, Section A and Schedule J, Part II. As a condition of employment, the President of the University is required to reside on campus premises. The residence serves both as a personal residence as well as a venue for carrying out University business. The University has determined that the value of the use of the personal residence is not considered taxable income to the President as provided in Internal Revenue Code Section 119. For tax year 2013, the President's use of the residence is conservatively estimated at $42,000. This estimated value is based on a fair rental value of $3,500 per month for similar houses in the area. This value includes maintenance of the property, landscaping, and snow removal. A Illinois Finance Authority 861091967 2013-07-01 17000000 Current refunding issue of 2009 bond issuance 0 0 0 A 510000 0 17000000 600000 0 0 349201 0 0 0 16050799 0 2009 1 0 1 1 A 0 1 0 0 0.00386 0.00386 1 0 1 A 0 0 0 1 1 0 0 0 0 A 0 Schedule K, Part III, Line 9-07/01/2013 17,000,000 Illinois Finance Authority Written Procedures for Non-Qualified Bonds The organization did not have established written procedures to ensure that all nonqualified bonds are remediated in accordance with the requirements under sections 1.141-12, 1.145-2, and 148 at year end. However, an annual review is performed to ensure the conditions required under section 1.145-2 are met. The requirements under section 148 are not applicable, as 100% the funds received upon issuance of the outstanding tax exempt bonds were immediately disbursed for qualified purposes, thus providing no assets that could be subject to the provisions of section 148. Therefore no bonds must be remediated in accordance to section 1.141-12. The organization is expecting to formally implement such written procedures before June 30, 2015. Schedule K, Part IV, Line 2c-07/01/2013 17,000,000 Illinois Finance Authority Bond proceeds were completely expended on date of issuance, July, 1, 2013. As bonds were fully expended, rebate calculation is not needed. Schedule K, Part IV, Line 7-07/01/2013 17,000,000 Illinois Finance Authority Written Procedures for Non-Qualified Bonds The organization did not have established written procedures to ensure that all nonqualified bonds are remediated in accordance with the requirements under sections 1.141-12, 1.145-2, and 148 at year end. However, an annual review is performed to ensure the conditions required under section 1.145-2 are met. The requirements under section 148 are not applicable, as 100% the funds received upon issuance of the outstanding tax exempt bonds were immediately disbursed for qualified purposes, thus providing no assets that could be subject to the provisions of section 148. Therefore no bonds must be remediated in accordance to section 1.141-12. The organization is expecting to formally implement such written procedures before June 30, 2015. Schedule K, Part V-07/01/2013 17,000,000 Illinois Finance Authority Procedures to Undertake Corrective Action Concordia University has not violated any applicable requirements for tax exempt bonds benefiting the University. The University is working with Bond Counsel to establish written procedures to ensure future timely identification of Federal tax requirements and expects to implement such procedures by June 30, 2015. Evelyn Burdick Sr. VP Enrollment and Marketing Personal Loan X 9600 4800 0 1 1 4800 X 4 32125 FMV 0 0 1 0 Schedule M, Part I, Line 9 The reported amounts represent the total number of contributions received for the particular type of property. Form 990, Part I, Line 6 In 2014, the University was named to the U.S. President's Higher Education Community Service Honor Roll for the sixth time in seven years. This federal recognition is the highest a college or university can receive for its commitment to volunteering, service-learning and civic engagement. Nearly 59 percent of students gave back to the community during the 2013-14 academic year through 11,426 service hours. Form 990, Part VI, Section A, Line 7a There are 16 voting members of the University's Board of Regents: 1) The President of the Northern Illinois District of The Lutheran Church - Missouri Synod (LCMS), ex officio, elected by convention of the Northern Illinois District of the LCMS. 2) Four members elected by convention of the Northern Illinois District of the LCMS. 3) Four members elected by the LCMS at the National LCMS Convention. 4) Seven members elected by the Board of Regents. All voting members of the Board of Regents have the same power and authority, regardless of the manner in which they are elected to the Board. Each voting member serves a three year term and may not serve more than nine consecutive years (12 consecutive years for the President of the Northern Illinois District). Terms are staggered. The President of the University and the Chairman of the Concordia University Foundation also serve as ex officio, non-voting members of the Board. Form 990, Part VI, Section B, Line 11b There are several distinct steps that Concordia follows in its IRS Form 990 Review Process. A first draft was prepared by Concordia's Controller, and a top level review was performed by University Management. After this initial review, an updated draft was sent to the University's auditor, Grant Thornton. Grant Thornton performed an in depth review of the first draft, requested support documentation for numerous parts of the 990, and provided items for the Controller to consider, verify, and/or correct. The Controller incorporated these items and developed a second draft of the Form 990. Upon completion of the second draft the Controller forwarded the draft, Grant Thornton's list of items, and the Controller's responses to those items to the University's VP for Finance and CFO, who performed an in depth review. Upon completion of this review, the draft was sent to Grant Thornton, along with the Controller's response to their items and changes, if any, identified after their initial review. Grant Thorton performed its final review and provided the Controller with the near final draft. The Controller forwarded the near final draft to the members of the Board of Regents' Finance Committee. This Committee was authorized, through Board Resolution, to act on behalf of the entire Board to review and approve the IRS Form 990. The Finance Committee was given approximately one week to review the IRS Form 990. During this review, members of the Committee emailed the Controller with questions and comments, if any. The Controller compiled these items and amended the 990, as needed. The Controller then sent the Committee the updated return, along with the compiled list of Committee questions and comments. Shortly after sending the return to the Committee, a Finance Committee meeting was held, during which the IRS Form 990 was finalized. Once finalized, the Committee, through resolution, voted to approve the filing of the IRS Form 990. After this vote, the Controller sent the entire Board of Regents a copy of the final Form 990. The Board of Regents was asked to review the return. After approximately one week, the Controller filed the final, approved, IRS Form 990. While not anticipated, if a question or concern expressed by a member of the Board of Regents at an upcoming Board meeting results in a need to correct the already filed return, the Controller would immediately file an amended return. Form 990, Part VI, Section B, Line 12c Concordia University Chicago is fully committed to conducting its responsibilities in a manner reflecting the highest degree of integrity and honesty. The success of Concordia in conducting its affairs is the sum of effort of each Board, Committee, and Cabinet member in conducting his or her responsibilities with good judgment and in an ethical manner. Therefore, without exception, each member is to comply with Concordia's Conflict of Interest Policy. As such an appointment, annually thereafter, each member is asked to read, acknowledge understanding, and agree to comply with Concordia's Conflict of Interest Policy. As a part of this process, each member is asked to disclose personal potential conflicts of interest. All such disclosures are reported to the Board and Concordia's President, who determine whether a potential conflict of interest exists. In the event that it is determined that a conflict does exist, the Member is prohibited in participating in all deliberations and decisions associated with all activities involving the related organization. In the event that it is discovered that any inappropriate activity does occur related to an actual conflict of interest, the relevant Member's position would be immediately vacated. Form 990, Part VI, Section B, Line 15 In addition to approving the Concordia University's annual contract, there are several other individuals who have their salaries renewed and approved by the Finance Committee of the Board of Regents. These individuals include the President's Cabinet and all individuals who have the ability to affect employees' compensation. This includes all members of the Human Resources and Payroll departments, as well as the University's Controller, Assistant Controller and Director of Budget Services. Annually, the Director of Human Resources and the Assistant Controller provide the Board with these individuals' compensation, as well as comparative data from similar universities. Once the data is reviewed, annual compensation increases for these individuals are either approved or rejected. The approval or rejection is document through a formal board of resolution of the Concordia University Board of Regents. Form 990, Part VI, Section C, Line 19 Concordia University makes its Articles of Incorporation, Bylaws, Conflict of Interest Policy, Whistle Blower Policy, IRS Form 990, and audited financial statements available to the general public on its website. (http://cuchicago.edu/about-concordia/our-mission/financial-information/) Form 990, Part XI, Line 9 1) Equity transfer to Concordia University Foundation -$31,998, 2) gain on interest rate swap $156,806, 3) change in value of funds held by third party $85,197, 4) change in value of pledge receivables $47,135, 5) change in value of life insurance policies -$1,573. Concordia University Foundation 7400 Augusta Street River Forest IL 60305 237055802 Formed to promote Concordia University through solicitation of funds and management of endowment. IL 501(c)(3) Line 11- Type I Concordia University 1 Lutheran Church Missouri Synod 1333 S Kirkwood Road Saint Louis MO 63122 460658118 Spreading the Gospel MO 501(c)(3) Line 1 N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 Concordia University Foundation c 1005647 Cost Concordia University Foundation r 31998 Cost