2013-02-13T15:40:04-06:00 2012-06-30 910189318 MOSS ADAMS LLP 3121 WEST MARCH LANE SUITE 100 STOCKTON CA 952192303 990 2011-07-01 951921340 ART CENTER COLLEGE OF DESIGN ARTC 6263962200 1700 LIDA ST PASADENA CA 91103 RICHARD HALUSCHAK 6263962200 2013-02-11 1 TRACY S PAGLIA P00366884 2099556100 2011 2016-03-07 17:11:31Z LORNE BUCHMAN 1700 LIDA ST PASADENA CA 91103 250687247 0 X ARTCENTER.EDU X 1930 CA ART CENTER COLLEGE OF DESIGN OPERATES AN INDEPENDENT, FOUR YEAR CURRICULUM TO EDUCATE ARTISTS AND DESIGNERS IN COMMUNICATION ARTS AND INDUSTRIAL DESIGN THAT EXTENDS ITS LEGACY OF PROFESSIONAL ART AND DESIGN PRACTICE AND ENABLES ITS GRADUATES TO REALIZE SUCCESS, FULFILLMENT AND RECOGNITION IN THEIR CHOSEN FIELDS. 22 21 1544 165 0 0 30622288 27937786 73587814 80439962 3019295 2126763 -178240 -44658 107051157 110459853 38011448 38722748 0 0 39232990 40999672 0 32042 1335058 24205129 22734659 101449567 102489121 5601590 7970732 143198243 169138227 45440164 71571741 97758079 97566486 X INVEST IN THE INFRASTRUCTURE, TECHNOLOGY AND EDUCATIONAL RESOURCES NECESSARY TO ADVANCE LEARNING, RESEARCH AND ACHIEVEMENT TO THE HIGHEST LEVELS OF EXCELLENCE, MINDFUL OF HOW ART AND DESIGN SHAPE AND DEFINE OUR GLOBAL CULTURE, WITH A COMMITMENT TO PROGRESSIVE EDUCATION DEFINED BY SOCIAL RESPONSIBILITY, CRITICAL THINKING, INTELLECTUAL DIVERSITY, AND THE CREATIVE PROCESS. 0 0 97640190 38722748 80439962 THE COLLEGE OPERATES AN INDEPENDENT, FOUR YEAR CURRICULUM TO EDUCATE ARTISTS AND DESIGNERS IN COMMUNICATION ARTS AND INDUSTRIAL DESIGN. THE COLLEGE OFFERS A BACHELOR OF FINE ARTS DEGREE IN SIX MAJORS - ADVERTISING, FILM, FINE ART, GRAPHIC DESIGN, ILLUSTRATION AND PHOTOGRAPHY AND IMAGING, AND A BACHELOR OF SCIENCE DEGREE IN FIVE MAJORS - ENVIRONMENTAL DESIGN, INTERACTION DESIGN, PRODUCT DESIGN, TRANSPORTATION DESIGN AND ENTERTAINMENT DESIGN. GRADUATE PROGRAMS LEAD TO THE MASTER OF FINE ARTS DEGREE IN BROADCAST CINEMA, FINE ART AND MEDIA DESIGN. THE GRADUATE PROGRAMS THAT OFFER THE MASTER OF SCIENCE DEGREE ARE ENVIRONMENTAL DESIGN, INDUSTRIAL DESIGN, AND TRANSPORTATION DESIGN. ALL EXPENDITURES RELATE TO ACADEMIC INSTRUCTION, PROGRAM SUPPORT AND OPERATION OF THE COLLEGE. THE FTE ENROLLMENT FOR JULY 2011 TO JUNE 2012 WAS 4,449 STUDENTS. 97640190 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 0 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 350 0 1 1544 1 0 0 0 0 0 1 1 0 0 0 0 X 22 21 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X DIANE WITTENBERG 6263962200 1700 LIDA ST PASADENA CA 91103 ROBERT C DAVIDSON JR 1.00 X X 0 0 0 CARL BASS 1.00 X 0 0 0 DOUGLAS C BOYD 1.00 X 0 0 0 LORNE M BUCHMAN 40.00 X X 536978 0 55135 WILLIAM T GROSS 1.00 X 0 0 0 KIT HINRICHS 1.00 X X 0 0 0 TIMOTHY M KOBE 1.00 X 0 0 0 GEORGE H LADYMAN 1.00 X X 0 0 0 SAMUEL J MANN 1.00 X 0 0 0 PETER W MULLIN 1.00 X 0 0 0 REINER M TRILTSCH 1.00 X X 0 0 0 JUDY C WEBB 1.00 X 0 0 0 ALYCE DE ROULET WILLIAMSON 1.00 X 0 0 0 RONALD I BENSION 1.00 X 0 0 0 WESLEY A COLEMAN 1.00 X 0 0 0 JEFFREY L GLASSMAN 1.00 X X 0 0 0 LINDA M GRIEGO 1.00 X 0 0 0 CHARLES FLOYD JOHNSON 1.00 X 0 0 0 MOLLY M MORGAN 1.00 X 0 0 0 BONNIE R NASH 1.00 X 0 0 0 CHARLES E NEARBURG 1.00 X 0 0 0 RAYMOND VICKS 1.00 X 0 0 0 WILLIAM D HORSFALL 1.00 X X 0 0 0 CLEON T KNAPP 1.00 X 0 0 0 PAULA VIOLICH 1.00 X 0 0 0 RICHARD HALUSCHAK 40.00 X 236092 0 23609 KATHERINE BARON 40.00 X 154279 0 24879 GEORGE FALARDEAU 40.00 X 188475 0 27354 FRED FEHLAU 40.00 X 251580 0 32774 ARWEN DUFFY 40.00 X 221325 0 31957 NIKOLAS HAFERMAAS 40.00 X 223019 0 33478 ANDREW OGDEN 40.00 X 168873 0 16887 DAVID MOCARSKI 40.00 X 156211 0 25072 STEWART REED 40.00 X 150998 0 23044 NANCY DUGGAN 40.00 X 150998 0 22905 JEAN FORD 0.00 X 211140 0 26000 2649968 0 343094 36 1 1 0 UNIVERSAL PROTECTION SERVICE LP 639 WILSHIRE BLVD LOS ANGELES CA 90017 SECURITY 636817 SODEXHO 9801 WASHINGTON BLVD GAITHERSBURG MD 20878 CATERING 496848 FOLLETT HIGHER EDUCATION GROUP 3146 SOLUTIONS CENTER CHICAGO IL 60677 COLLEGE BOOKSTORE MANAGEMENT 431365 CLEAR IMAGE PRINTING COMPANY 731 WILSON AVE GLENDALE CA 91203 PRINTING 354770 SPECIALTY SERVICES 45 LAPORTE ST ARCADIA CA 91006 JANITORIAL 351588 27 39500 24809493 3088793 27937786 TUITION AND FEES 611600 79180408 79180408 AUXILIARY SERVICES 611600 1259554 1259554 80439962 1616251 1616251 4424 4424 140661412 140155324 506088 506088 506088 27412 39500 72070 -44658 -44658 110459853 80439962 0 2082105 38722748 38722748 1765509 710683 789554 265272 197596 197596 30418386 28736249 1168066 514071 2863000 2704676 109939 48385 3425072 3235665 131523 57884 2330109 2201254 89476 39379 85625 85625 57043 57043 32042 32042 223706 223706 2987772 2822549 114730 50493 169795 160405 6520 2870 6542209 6180425 251221 110563 1003067 947597 38518 16952 4296681 4059074 164993 72614 840390 793916 32271 14203 68521 64732 2631 1158 551820 521304 21190 9326 1786365 1687579 68596 30190 2080080 1965052 79875 35153 BOND DEBT FEES 772994 730247 29683 13064 UNCOLLECTIBLE ACCOUNTS 667347 630443 25626 11278 LICENSES, PERMITS, DUES 327069 308983 12559 5527 COST OF STUDENT MATERIA 274175 259013 10528 4634 102489121 97640190 3513873 1335058 7999 7999 18270618 23957621 998664 781936 3821664 4825215 73442 82340 678673 846796 62697792 13407293 43946312 49290499 71170512 71482268 127474 101008 1868827 1864013 2234058 15898532 143198243 169138227 5079496 12332917 10353424 10061019 29585000 48735000 422244 442805 45440164 71571741 X 41472696 42820829 11615855 9934755 44669528 44810902 97758079 97566486 143198243 169138227 X 7970732 -8162325 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 50393000 10213000 -289000 1712000 125000 58480000 42039000 1263000 9743000 1500000 1023000 129000 50393000 42938000 903000 -878000 830000 94000 42039000 33432000 585000 10782000 1253000 384000 224000 42938000 0.16990 0.76220 0.06790 1 0 3679010 3679010 49291982 12213202 37078780 848881 378394 470487 8877919 815697 8062222 49290499 DEBT ISSUANCE COST 1031723 RESTRICTED USE OF CASH 13534445 OTHER ASSETS 1332364 15898532 FEDERAL LOANS 442805 442805 110459853 102489121 7970732 -1922768 -6239557 -8162325 -191593 70958948 -1922768 72070 -1850698 72809646 37650207 37650207 110459853 71148974 6311627 6311627 64837347 37651774 37651774 102489121 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ENDOWMENTS ARE RESTRICTED BY THE DONORS FOR SCHOLARSHIPS AND SUPPORT FOR EDUCATIONAL PROGRAMS AND INITIATIVES. THE BOARD-DESIGNATED QUASI-ENDOWMENT IS RESTRICTED FOR SCHOLARSHIPS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE COLLEGE ADOPTED THE PROVISIONS OF FASB ACCOUNTING STANDARDS CODIFICATION (ASC) 740-10, INCOME TAXES, RELATING TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS ON JULY 1, 2009 WHICH HAD NO FINANCIAL STATEMENT IMPACT TO THE COLLEGE FOR THE YEARS ENDING JUNE 30, 2012 OR JUNE 30, 2011. PART XI, LINE 8 - OTHER ADJUSTMENTS: LOSS ON INTEREST SWAP -6,000,097. ACTUARIAL ADJUSTMENT -239,460. TOTAL TO SCHEDULE D, PART XI, LINE 8: -6,239,557. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EXPENSES 72,070. PART XII, LINE 4B - OTHER ADJUSTMENTS: STUDENT FINANCIAL AID 12,890,114. FEDERAL FUNDING NETTED AGAINST EXPENSES ON FINANCIAL STATEMENTS 24,760,093. PART XIII, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EXPENSES 72,070. LOSS ON INTEREST RATE SWAP 6,000,097. ACTUARIAL ADJUSTMENT 239,460. PART XIII, LINE 4B - OTHER ADJUSTMENTS: STUDENT FINANCIAL AID 12,890,114. FEDERAL FUNDING NETTED AGAINST EXPENSES ON FINANCIAL STATEMENTS 24,760,093. EXPENSES RECORDED IN NET ASSETS 1,567. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE COLLEGE PUBLICIZES ITS RACIALLY NONDISCRIMINATORY POLICY THROUGH BROCHURES, PRINT MEDIA, REGISTRATION MATERIALS AND ITS WEBSITE. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 THE COLLEGE ADMINISTERS VARIOUS SCHOLARSHIP PROGRAMS AND LOANS PROVIDED BY GOVERNMENTAL AGENCIES (INCLUDING DIRECT LOANS (SUBSIDIZED AND UNSUBSIDIZED), PELL GRANTS, SEOG AND FEDERAL WORK STUDY PROGRAMS) AND AWARDS ARE MADE BASED UPON THE CRITERIA ESTABLISHED BY THE GOVERNMENTAL AGENCY. EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICE STUDY ABROAD SEMESTER - #12239 & #00274 TEST LAB BERLIN 71800 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICE STUDY ABROAD SEMESTER - #00251 INSEAD 9685 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICE STUDY ABROAD SEMESTER - #00262 LONDON ANCIENT MODERN 22895 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICE STUDY ABROAD SEMESTER - ASHOKA INDIA PROJECT 17500 SOUTH AMERICA 0 0 PROGRAM SERVICES STUDY ABROAD SEMESTER- SAFE AGUA PERU 12000 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICES ESADE EXECUTIVE EDUCATION SEMINAR 14094 0 0 0 0 0 0 147974 0 147974 0 0 0 0 0 0 X X X X X X X 1 GRENZEBACH GLIER & ASSOCIATES INC 401 N MICHIGAN AVENUE CHICAGO IL 60611 FUNDRAISING PROGRAM CONSULTING 0 0 32042 -32042 32042 -32042 CA CAR CLASSIC 66912 39500 27412 7804 10938 53328 66912 39500 27412 7804 10938 53328 72070 -44658 1 UNDERGRADUATE SCHOLARSHIPS 1215 11262500 GRADUATE SCHOLARSHIPS 155 1451642 PELL GRANTS, SEOG, FEDERAL WORK STUDY, DIRECT LOANS 2800 25425320 STUDENT SPECIAL CIRCUMSTANCE TUITION WAIVERS - MEDICAL 8 90805 EDUCATION PROGRAM TUITION DISCOUNTS 596 492480 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: GRANT FUNDS ARE RECORDED IN A PROJECT ACCOUNT SO THAT ALL ASSOCIATED REVENUES AND EXPENSES ARE ACCOUNTED FOR RELATED TO A SPECIFIC GRANT. X 1 0 0 0 0 0 0 1 0 LORNE M BUCHMAN 394478 0 142500 0 0 0 39448 0 15687 0 592113 0 0 0 RICHARD HALUSCHAK 236092 0 0 0 0 0 23609 0 0 0 259701 0 0 0 KATHERINE BARON 154279 0 0 0 0 0 15428 0 9451 0 179158 0 0 0 GEORGE FALARDEAU 188475 0 0 0 0 0 18848 0 8506 0 215829 0 0 0 FRED FEHLAU 251580 0 0 0 0 0 25158 0 7616 0 284354 0 0 0 ARWEN DUFFY 221325 0 0 0 0 0 22133 0 9824 0 253282 0 0 0 NIKOLAS HAFERMAAS 223019 0 0 0 0 0 22302 0 11176 0 256497 0 0 0 ANDREW OGDEN 168873 0 0 0 0 0 16887 0 0 0 185760 0 0 0 DAVID MOCARSKI 156211 0 0 0 0 0 15621 0 9451 0 181283 0 0 0 STEWART REED 150998 0 0 0 0 0 15428 0 7616 0 174042 0 0 0 NANCY DUGGAN 150998 0 0 0 0 0 14399 0 8506 0 173903 0 0 0 JEAN FORD 211140 0 0 0 0 0 26000 0 0 0 237140 0 0 0 PART I, LINE 4A JEAN FORD HAS A CONFIDENTIAL SEVERANCE AGREEMENT. THE TERMS OF THE AGREEMENT IS AVAILABLE TO THE IRS UPON REQUEST. PART I, LINE 7 LORNE BUCHMAN RECEIVES A DISCRETIONARY BONUS. IT IS DETERMINED BY THE BOARD OF TRUSTEES EACH YEAR BASED ON PROPOSED GOALS PROVIDED BY THE CEO/PRESIDENT IN OCTOBER EACH YEAR. THE GOALS MUST BE SPECIFIC, MEASURABLE AND ATTAINABLE, AND INCLUDE GOALS RELATING TO FISCAL MANAGEMENT OF ART CENTER. IT IS BASED ON THE BOARD OF TRUSTEE'S ASSESSMENT OF MEETING THE GOALS SET. THE BONUS AMOUNT REPORTED ON THE CURRENT YEAR RETURN IS COMPRISED OF TWO PAYMENTS, ONE FOR FISCAL YEAR 2010 AND ONE FOR FISCAL YEAR 2011. DUE TO TIMING OF THE PAYMENTS BOTH OF THEM WERE MADE IN THE YEAR REPORTED ON THIS RETURN. CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY 521705592 130178TR7 2009-08-13 9940000 CONSTRUCT SOUTH CAMPUS CLASSROOMS; REFINANCE EXISTING TAXABLE LOAN 0 0 0 CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY 521705592 130178K54 2012-02-07 20000000 ACQUISITION, CONSTRUCTION, IMPROV. AND/OR EQUIPPING OF EDUC. FACILITIES. 0 0 0 9940000 198800 27504 3731600 2009 1 0 1 1 20000000 13534000 133200 316000 100000 7472000 0 0 0 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 1 1 WELLS FARGO BANK 30.250000000000 0 0 0 0 0 0 1 1 WELLS FARGO BANK 28.500000000000 0 0 0 0 0 X PART I, COL A(F) BOND PROCEEDS WERE USED, IN PART, TO REFINANCE A TAXABLE LOAN THAT WAS USED TO CONSTRUCT CLASSROOMS, GALLERIES, STUDIO SPACE AND ADMINISTRATIVE OFFICE ON THE COLLEGE'S SOUTH CAMPUS. IN ADDITION, THE COLLEGE USED A PORTION OF THE PROCEEDS TO REIMBURSE EXPENDITURES RELATED TO THE COMPLETION OF SEVERAL RENOVATION PROJECTS ON THE SOUTH CAMPUS. THE COLLEGE'S SOUTH CAMPUS IS IN A FORMER INDUSTRIAL ZONE NOW DESIGNATED BY THE CITY OF PASADENA FOR RESEARCH, MEDICAL AND EDUCATIONAL USES AND THE BUILDING AMONG THE FIRST LEED CERTIFIED BUILDINGS IN THE CITY. FORM 990, PART VI, SECTION A, LINE 4 THE FOLLOWING ARE DESCRIPTIONS OF AMENDMENTS TO THE BYLAWS THAT WERE APPROVED BY THE BOARD BETWEEN 7/1/11-6/30/12: 1) 40% QUORUM REDUCTION - REDUCED THE NUMBER OF TRUSTEES REQUIRED TO CONSTITUTE A QUORUM AT BOARD AND BOARD COMMITTEE MEETINGS FROM A MAJORITY (MORE THAN 50%) TO 40% UNTIL THE DAY AFTER THE FIRST BOARD OF TRUSTEES' MEETING IN 2013. [APPROVED BY THE BOARD ON 1/20/12] 2) INCREASE THE NUMBER OF TRUSTEES ALLOWED ON THE BOARD - EXPANDED THE NUMBER OF TRUSTEES ALLOWED ON THE BOARD FROM A MINIMUM OF 11 AND A MAXIMUM OF 27 TO A MINIMUM OF 5 AND A MAXIMUM OF 35 (INCLUDING THE PRESIDENT). [APPROVED BY THE BOARD ON 6/22/12] FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED FIRST BY THE CONTROLLER AND THE CHIEF FINANCIAL OFFICER. IT IS THEN REVIEWED BY THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES AND AN ELECTRONIC COPY IS MADE AVAILABLE TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE COLLEGE'S CONFLICT OF INTEREST POLICY COVERS ALL TRUSTEES, OFFICERS, MEMBERS OF MANAGEMENT AND COMMITTEE MEMBERS. EACH COVERED PERSON MUST ATTEST ANNUALLY THAT THEY ARE IN COMPLIANCE WITH THE POLICY. THE STATEMENTS ARE REVIEWED EACH YEAR BY THE AUDIT COMMITTEE. THE GOVERNANCE COMMITTEE DETERMINES IF CONFLICT EXISTS. ANY TRANSACTION IN WHICH A CONFLICT MAY EXIST MUST BE APPROVED BY THE BOARD OF TRUSTEES. ANY PERSON WITH A CONFLICT MAY NOT PARTICIPATE IN THE BOARDS DELIBERATIONS OR VOTE WITH REGARD TO THE TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15 A) PRESIDENT AND CEO - THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES REVIEWS COMPARABLE DATA FROM A VARIETY OF SOURCES AND INCLUDES RESEARCH AND ADVICE FROM ONE OR MORE INDEPENDENT COMPENSATION CONSULTANTS AND ATTORNEYS. THE EXECUTIVE COMMITTEE THEN MAKES A RECOMMENDATION TO THE FULL BOARD OF TRUSTEES FOR APPROVAL. B) OFFICERS AND OTHER KEY EMPLOYEES - THE PRESIDENT SETS THE SALARIES FOR THESE POSITIONS USING COMPARABLE DATA STUDIES. COMPENSATION FOR PRESIDENT, OTHER OFFICERS, AND KEY EMPLOYEES IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 ARTICLES OF INCORPORATION, BYLAWS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,922,768. LOSS ON INTEREST SWAP -6,000,097. ACTUARIAL ADJUSTMENT -239,460. TOTAL TO FORM 990, PART XI, LINE 5: -8,162,325.