2014-05-08T15:29:48-07:00 2013-06-30 990 2012-07-01 590936101 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY INC EMBR 3862266000 600 South Clyde Morris Boulevard Daytona Beach FL 32114 George Herbst 3862266499 2014-05-08 2012 2015-11-30 17:44:51Z Dr John P Johnson 600 South Clyde Morris Boulevard Daytona Beach FL 32114 386687803 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. 15 15 6587 0 942828 -129987 8587333 7772777 350362935 372421585 687000 1912000 3593732 2517638 363231000 384624000 43781087 45824788 0 0 173567053 192410392 31624 32676 1883964 121528236 119614144 338908000 357882000 24323000 26742000 507755000 533108000 220708000 219319000 287047000 313789000 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 262970189 44072000 372421585 Embry-Riddle Aeronautical University provided comprehensive education leading to undergraduate and graduate degrees, seminars, short courses and research activity to 32,382 part-time and full-time students. 0 0 0 262970189 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 0 0 0 1 1 0 0 0 1 277 0 1 6587 1 1 1 1 GM SN 0 0 0 1 1 0 0 0 0 0 0 X 15 15 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 James Henderson 5 0 X 0 0 0 Mori Hosseini 5 0 X 0 0 0 Joseph Martin 3 0 X 0 0 0 Lawrence W Clarkson 3 0 X 0 0 0 John Amore 2 0 X 0 0 0 Kenneth Dufour 2 0 X 0 0 0 Karen Holbrook 2 0 X 0 0 0 Ronald Keys 2 0 X 0 0 0 Arthur J Lichte 2 0 X 0 0 0 Glenn S Ritchey 2 0 X 0 0 0 David Robertson 2 0 X 0 0 0 Jean G Rosanvallon 2 0 X 0 0 0 Zane Rowe 2 0 X 0 0 0 Louis Seno 2 0 X 0 0 0 Nicole Stott 2 0 X 0 0 0 John P Johnson 50 0 X 961835 0 0 Eric B Weekes 40 0 X 276759 0 0 John Watret 40 0 X 247736 0 0 Richard Heist 40 0 X 250378 0 0 Francis Ayers 40 0 X 239586 0 0 Tim Brady 40 0 X 177635 0 0 Irene McReynolds 40 0 X 222951 0 0 Christina Recascino 40 0 X 262044 0 0 Steven Ridder 40 0 X 489251 0 0 Daniel Montplaisir 40 0 X 263686 0 0 Maj Mirmirani 40 0 X 210994 0 0 Reda Mankbadi 40 0 X 206760 0 0 3809615 0 0 222 0 1 0 Lockheed Martin 9221 Corporate Boulevard Rockville MD 20850 Research Services 3779087 Blackboard Inc PO Box 200154 Pittsburgh PA 15251 Computer Services 2423950 Sodexo Inc and Affiliates 600 South Clyde Morris Blvd Daytona Beach FL 32114 Dining Services 2141415 WFF Facility Services PO Box 958204 Saint Louis MO 63195 Janitorial Services 1288068 Huron Consulting Group PO Box 71223 Chicago IL 60694 Consulting Services 824830 43 8679 0 124822 0 3411497 4227779 395094 7772777 Higher Education 611310 372421585 372421585 0 0 0 0 0 0 372421585 1958000 1958000 0 0 0 0 0 0 0 0 0 0 1741230 0 0 0 1741230 0 1741230 842428 898802 0 0 361000 0 407000 0 -46000 -46000 -46000 0 0 77892 124822 33866 44026 44026 0 0 0 0 0 0 0 2355319 1622937 732382 732382 0 0 0 384624000 375908395 942828 0 0 0 45824788 45824788 0 0 0 0 3809615 0 3809615 0 0 0 0 0 140499402 110163886 29327131 1008385 10307000 7833320 2370610 103070 26554423 20181392 6107517 265514 11239952 8813111 2346170 80671 0 0 0 0 299822 0 299822 0 130875 0 130875 0 230407 0 230407 0 32676 32676 62000 0 62000 0 23745260 14907635 8740885 96740 3643850 1912439 1720754 10657 7511074 4019760 3444165 47149 3478470 1822859 1652428 3183 4199 0 4199 0 5620724 2665173 2955551 0 9059352 5718755 3150298 190299 0 0 0 0 701534 386637 306010 8887 7649009 0 7649009 0 0 0 0 0 24558000 17874000 6684000 0 4927316 2246114 2681202 0 Fuel and Oil 4040403 3876938 163465 0 Equipment Rental 16049875 9194690 6855034 151 Rent 4905830 3203023 1702807 0 Miscellaneous 2996144 2325669 633893 36582 0 0 0 0 357882000 262970189 93027847 1883964 120534000 115470000 0 0 3157000 2724000 11385778 13967000 222222 0 0 0 12627000 12450000 2683000 2615000 3114000 5435000 537820000 271998000 250326000 265822000 0 0 96708000 107651000 0 0 0 0 6998000 6974000 507755000 533108000 38980000 44508000 0 0 3190000 1891000 163083000 157765000 0 0 0 0 319000 957000 0 0 15136000 14198000 220708000 219319000 X 258163000 279273000 11513000 15219000 17371000 19297000 287047000 313789000 507755000 533108000 26742000 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 230407 0 0 230407 0 SchC_P2B_S00_L01 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 in engineering programs at 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 withing the FAA that will positively impact our students, as they progress through pilot or air traffic management educational programs - two areas heavily regulated by the Federal Aviation Administration. We work to make the FAA aware of how potential policy changes affect our collegiate training programs. 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 49572000 451000 -8243000 816000 0 0 40964000 0.63 0.37 0 0 0 7618000 0 7618000 316928000 0 130320000 186608000 0 0 0 0 152055000 0 115370000 36685000 61219000 0 26308000 34911000 265822000 Mutual Funds 92117000 F Deposits with Fiduciaries 15534000 F 107651000 0 Advances for student loans and financial aid 9884000 Student deposits and advance payments 4314000 14198000 X 340552000 0 0 0 0 0 340552000 0 44072000 44072000 384624000 313810000 0 0 0 0 0 313810000 0 44072000 44072000 357882000 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Endowment funds are used primarily for student scholarships. SchD_P10_S00_L02 Schedule D, Part X, Line 2 Embry-Riddle Aeronautical University is a tax-exempt educational institution organized as described in Section 501(c)(3) of the Internal Revenue Code. The University is an independent, nonsectarian, not-for-profit coeducational university serving culturally diverse students. Embry-Riddle Aeronautical University continues to be organized and operated consistent with the requirements of section 501(c)(3) tax exempt organization. To protect the University's tax exempt status and provide guidance to its employees and representatives, the University has adopted several policies, which can be found in the Administrative Policies and Procedures Manual (APPM). The University has adopted APPM 1.6 (Political Activities Policy) which prohibits political campaign activity on University property and the use of property or resources for this purpose. To further protect this tax exempt status, the University has adopted APPM 1.5 (Lobbying Policy), with all Lobbying activity coordinated through the President. Amounts paid for lobbying are insignificant and reviewed annually through the 990 preparation process. The University addresses private inurement issues through APPM 1.3.1 (Conflict of Interest Policy), which applies to employees and contains a Board of Trustee Supplement. Unrelated business income is reviewed annually and reported on the annual IRS 990T. The University's unrelated business income is related to the rental of real property for cell phone tower use and the provision of maintenance, custodial, and other services in conjunction with the rental of property to the FAA. This income is partially offset by expenses and is insignificant. My conclusion is that the University's qualification as a 501(c)(3) tax exempt organization will more likely than not be sustained upon examination by tax authorities. II. Public Charity Status as a Private School under 170(b)(1)(A)(ii). The University is an independent, nonsectarian, not-for-profit coeducational university serving culturally diverse students seeking careers in aviation, aerospace, business, engineering, and related fields. Embry-Riddle Aeronautical University is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools to award degrees at the associate, bachelor, master, and doctoral levels. Several approved policies in place ensure no discrimination based on race, gender, age, religion, etc. APPM 8.3.10 (Harassment and Nondiscrimination Policy) and APPM 1.22 (Privacy Policy) applies to employees and students at all University locations and complies with federal and state laws. For fiscal year 2013, total undergraduate FTE enrollment at the two residential campuses for fall was 6003, graduate FTE enrollment was 561, total full time faculty was 547, total part time faculty was 2692, total full time staff was 1,495 and total part time staff was 106. Students have 60 degree programs to choose from at two residential campuses and more than 150 Worldwide Campus locations. Total degrees awarded in 2012/2013 were 5,356. My conclusion is that the University's qualification as a public charity under 170(b)(1)(A)(ii) will more likely than not be sustained upon examination by tax authorities. III. Taxation of Revenue - Major Sources of Revenue are Related to Exempt Purpose: The University's major sources of revenue are related to its exempt purpose - educating students. Student tuition and fee revenue are the largest source of revenue at 87.43%. Student related revenue for Bookstore, Food Service and Housing is at 6.36%, for a total of 93.79% of all revenue sources being directly related to educating students. Revenue and expenses related to these functions are captured in individual cost centers and reported at a functional level for each campus. Unrelated business income is not significant, but is accumulated in cost centers that also capture the cost of delivering that service and reported annually on the University's 990T. My conclusion is that the University's major sources of revenue are related to its tax exempt status and thus not taxable. This tax exempt status will more likely than not be sustained upon examination by tax authorities. SchD_P11_S00_L04b Schedule D, Part XI, Line 4b $44,072,000 of Institutionally Funded Scholarship expenses were reported on the financial statements as a contra-revenue amount. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b $44,072,000 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 SchE_P01_S00_L03 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, Student Life, Career Services and University Diversity. 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 Values Statement. SchE_P01_S00_L06 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 5 Program Services Higher Education 1772144 Europe (including Iceland and Greenland) 1 2 Program Services Higher Education 240488 2 7 2012632 1 0 1 0 0 0 X X X X X X X 1 Aria Calls and Cards 717 W St Germain Street Saint Cloud MN 56301 Coordinates telephone fundraising activities 1 47331 32676 14655 47331 32676 14655 All States Blue Gold Gala 171556 106251 65305 0 0 0 0 0 25659 Golf Tournament 31158 18571 12587 0 0 7296 0 0 911 0 202714 124822 77892 0 0 7296 0 0 26570 33866 44026 1 Tuition Waivers 309 2458903 Scholarships 12279 39489023 Grants in Aid 488 3876862 SchI_P01_S00_L02 Schedule I, Part I, Line 2 Financial Aid funds are awarded and monitired by the Financial Aid Department. X X X X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 John P Johnson 402444 0 100130 0 459261 0 20523 0 21191 0 1003549 0 0 0 Eric B Weekes 265429 0 10130 0 1200 0 21192 0 7680 0 305631 0 0 0 Christina Recascino 226084 0 5130 0 30830 0 19444 0 12876 0 294364 0 0 0 John Watret 234831 0 10130 0 2775 0 20553 0 21216 0 289505 0 0 0 Richard Heist 244048 0 5130 0 1200 0 21010 0 14423 0 285811 0 0 0 Francis Ayers 222856 0 10130 0 6600 0 18597 0 276 0 258459 0 0 0 Tim Brady 170305 0 2130 0 5200 0 15260 0 14412 0 207307 0 0 0 Steven Ridder 402820 0 130 0 86301 0 20500 0 21216 0 530967 0 0 0 Daniel Montplaisir 103040 0 0 0 160646 0 8467 0 10608 0 282761 0 0 0 Irene McReynolds 216621 0 5130 0 1200 0 18726 0 14448 0 256125 0 0 0 Maj Mirmirani 207164 0 2630 0 1200 0 17845 0 251 0 229090 0 0 0 Reda Mankbadi 149819 0 130 0 56811 0 17215 0 21216 0 245191 0 0 0 SchJ_P01_S00_L01a 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 is 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 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. A Volusia County Educational Facilities Authority 800000613 000928836 2003-08-21 39531252 Capital Improvements & Refund 1992 0 0 0 B Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 54960719 Capital Improvements 0 0 0 C Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 49583229 Refund 1996 Bonds 0 0 0 D Volusia County Educational Facilities Authority 800000613 928836JQ9 2011-07-07 47545048 Refund 1999A&B Bonds 0 0 0 A 13675000 14306189 39531252 2846147 0 0 532768 1385514 0 22227902 0 0 1 0 1 1 B 0 0 54960719 0 0 0 354198 1704665 0 48485933 0 0 0 0 1 1 C 12605000 43740473 49583229 8469213 0 0 321020 1537876 0 0 0 0 0 1 1 1 D 1230000 42261522 47545048 3161861 0 0 561230 521903 0 0 0 0 1 0 1 1 A 0 0 1 0 1 0 0 0.0146 0.0146 1 0 1 B 0 0 1 0 1 0 0 0.0073 0.0073 1 0 1 C 0 0 0 0 0 0 0 1 0 1 D 0 0 0 0 0 0 0 1 0 1 A 0 1 0 1 0 0 0 0 1 B 0 1 0 1 0 0 0 0 1 C 0 1 0 1 0 0 0 0 1 D 0 1 0 1 0 0 0 0 1 A 1 B 1 C 1 D 1 SchK_P04_S00_L02c Schedule K, Part IV, Line 2c Rebate computations completed 6/30/13 Brown and Brown Inc Trustee Henderson was a principal of Brown and Brown. 28800 Consultant for health insurance coverage for ERAU. These services were provided at fair value in the ordinary course of business. 0 Brown and Brown Inc Trustee Henderson was a principal of Brown and Brown. 4787261 Approximately $390,000 were fees for services as consultant and commissions for property and casualty insurance coverage. The remainder were premiums passed through to insurance providers. These services were provided at fair value in the ordinary course of business. 0 Intervest Construction Inc Trustee Hosseini is a principal of Intervest Construction. 469487 Approximately $350,000 were lease payments for office space and approximately $120,000 were utility payments on the leased 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 47260 Aircraft charter services provided at fair value in the ordinary course of business. 0 X 2 820 Sale of comparable properties X 26500 Cost of donated property X 600 Cost of donated property X 3 256165 Selling price of donated property X 10 37085 Sale of comparable properties X Furniture and Fixtures 1 750 Cost of donated property X Equipment Machinery 4 22050 Cost of donated property X Gift certificates and other property 248 49324 Cost of donated property X Services 2 1800 Cost of donated service 0 0 1 0 F990_P06_S0A_L03 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. F990_P06_S0B_L11b 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 the filed with the IRS. F990_P06_S0B_L12c 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. 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. F990_P06_S0B_L15 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. F990_P06_S0C_L19 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. ERAU Deutschland GmbH Kurfuerstenstrasse 56 Berlin GM 10785 Higher Education GM 185383 67742 N/A Embry-Riddle Aeronautical University Asia LTD 150 Cecil Street 15-01 Singapore SN 069543 980681431 Higher Education SN 1220915 622391 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 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY ASIA LTD b 123660 CASH TRANSFER