2012-05-15T17:45:59-07:00 2011-06-30 990 2010-07-01 590936101 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY INC EMBR 3862266256 600 South Clyde Morris Blvd Daytona Beach FL 32114 ERIC B WEEKES 3862266499 2012-05-15 2010 2016-02-24 21:20:13Z Dr John P Johnson 600 S Clyde Morris Blvd Daytona Beach FL 32114 361336553 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, 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 additional information. 17 17 6304 0 1562812 56864 4111000 7893824 315611909 346569102 1779000 1535000 3463091 3432074 324965000 359430000 40645000 44246862 0 0 154655000 162819501 53621 38475 1568477 104090379 106134162 299444000 313239000 25521000 46191000 439830000 490734000 223297000 228010000 216533000 262724000 Embry-Riddle Aeronautical University is an independent, non-profit, coeducational university serving students motivated toward careers in aviation and aerospace. Campuses in Daytona Beach, 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 additional information. 0 0 235220797 42330000 359430000 Embry-Riddle Aeronautical University provided comprehensive education leading to undergraduate and graduate degrees, seminars, short courses and research activity to 23,082 part-time and full-time students. 0 0 0 235220797 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 1 0 1 1 1 1 1 0 0 1 1 0 0 0 0 1 274 0 1 6304 1 1 1 1 GM SN 0 0 0 1 1 0 0 0 0 1 0 X 17 17 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 3862266256 600 South Clyde Morris Boulevard Daytona Beach FL 32114 James Henderson 5 X 0 0 0 Mori Hosseini 5 X 0 0 0 Joseph Martin 3 X 0 0 0 Lawrence Clarkson 3 X 0 0 0 Kenneth Dufour 3 X 0 0 0 Jeffrey Feasel 2 X 0 0 0 James Hagedorn 3 X 0 0 0 Karen Holbrook 3 X 0 0 0 Glen Ritchey 2 X 0 0 0 David Robertson 2 X 0 0 0 John Amore 2 X 0 0 0 Eleanor Baum 3 X 0 0 0 Ronald Keys 2 X 0 0 0 John O'Brien 3 X 0 0 0 Jean Rosanvallon 2 X 0 0 0 Zane Rowe 2 X 0 0 0 Louis Seno 2 X 0 0 0 Caroline Daniels 2 X 0 0 0 John P Johnson 50 X 771525 0 0 Eric B Weekes 40 X 208495 0 0 Martin Smith 40 X 226695 0 0 Francis Ayers 40 X 237617 0 0 Richard Heist 40 X 208635 0 0 Christina Frederick-Recascino 40 X 195525 0 0 John Watret 40 X 180183 0 0 Tim Brady 40 X 155550 0 0 Steven Ridder 40 X 312014 0 0 Reda Mankbadi 40 X 186306 0 0 Donald Bishop 40 X 195746 0 0 Maj Mirmirani 40 X 193008 0 0 Massoud Bazargan 40 X 178871 0 0 3250170 0 0 160 0 1 0 Brown and Brown Inc PO Box 2412 Daytona Beach FL 32115 Insurance and Consulting Services 4666096 Florida Health Care Plan Inc PO Box 9910 Daytona Beach FL 32120 Insurance Services 3110409 Sodexo Inc and Affiliates 600 South Clyde Morris Blvd Daytona Beach FL 32114 Dining Services 2040869 ATH Group Inc 4601 Presidents Drive Suite 230 Lanham MD 20706 Research Services 1543049 Lockheed Martin 9221 Corporate Boulevard Rockville MD 20850 Research Services 1314386 41 7413 0 121588 0 4310510 3454313 404910 7893824 Higher Education 611310 346569102 346550034 19068 0 0 0 0 0 346569102 1551000 1551000 0 0 1000 1000 0 0 0 0 0 0 2881986 0 0 0 2881986 0 2881986 1411629 1470357 0 0 380000 0 397000 0 -17000 -17000 -17000 0 0 89052 121588 15665 73387 73387 0 0 0 0 0 0 0 1970589 1493888 476701 476701 0 0 0 359430000 349973364 1562812 0 0 0 44246862 44246862 0 0 0 0 2878291 0 2878291 0 0 0 0 0 123539795 98039431 24574773 925591 6619000 5096630 1456180 66190 19668969 15145106 4327173 196690 10113446 7843154 2196245 74047 0 0 0 0 214128 0 214128 0 88000 0 88000 0 321776 0 321776 0 38475 38475 43500 0 43500 0 20382032 13637805 6675340 68887 2237113 1689484 547415 214 7443519 4193196 3223825 26498 3228602 1596158 1628490 3954 11867 7865 4002 0 5707504 2693302 3014202 0 6767628 4187403 2456561 123664 0 0 0 0 705596 336607 351447 17542 8236728 0 8236728 0 0 0 0 0 20321979 16733979 3588000 0 4481650 2233117 2248533 0 Fuel and Oil 3342437 3195021 147416 0 Equipment Rental 14631206 8385441 6245765 0 Rent 4343406 3006984 1336422 0 Miscellaneous 3414284 2742045 645514 26725 Loan Programs 211207 211207 0 0 0 0 0 0 313239000 235220797 76449726 1568477 97431000 119214000 0 0 4692000 3467000 8012019 10009556 868981 444444 0 0 12297000 12412000 2568000 2075000 2036000 3438000 464944000 232931000 212906000 232013000 0 91679000 100577000 0 0 0 0 7340000 7084000 439830000 490734000 33336000 39412000 0 0 4719000 4628000 167885000 164609000 0 0 0 0 2023000 1930000 0 0 15334000 17431000 223297000 228010000 X 192025000 235619000 11092000 11852000 13416000 15253000 216533000 262724000 439830000 490734000 46191000 0 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 1 500 0 1 321776 0 0 322276 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. 48197000 1843000 12870000 554000 0 0 62356000 40964000 1574000 6390000 731000 0 0 48197000 49572000 451000 -8243000 816000 0 0 40964000 0.65 0.35 0 0 0 9245000 0 9245000 273000000 0 109397000 163603000 0 0 0 0 126405000 0 103044000 23361000 56294000 0 20490000 35804000 232013000 Mutual Funds 79842000 F Deposits with Fiduciaries 20735000 F 100577000 0 Advances for student loans and financial aid 9882000 Student deposits and advance payments 7549000 17431000 359430000 313239000 46191000 0 0 0 0 0 0 46191000 317100000 0 0 0 0 0 317100000 0 42330000 42330000 359430000 270909000 0 0 0 0 0 270909000 0 42330000 42330000 313239000 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 I. Continued Qualification as a 501(c) (3) Tax-Exempt Organization: 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 Vice President, Academics and Research. Amounts paid for lobbying are insignificant and reviewed annually through the 990 preparation process. The University addresses private inurnment 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. Administration's 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, and master 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 2011, total undergraduate FTE enrollment at the two residential campuses for fall was 5976, graduate FTE enrollment was 568, total full time faculty was 456, total part time faculty was 2903,total full time staff was 1,347 and total part time staff was 82. Students have 35 degree programs to choose from at two residential campuses and more than 130 Worldwide Campus locations. Total degrees awarded in 2010/2011 were 5,041. Administration's 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 88.31%. Student related revenue for Bookstore, Food Service and Housing is at 5.92%, for a total of 94.23% 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. Administration's 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_P12_S00_L04b Schedule D, Part XII, Line 4b The following amount is reported as contra-revenue on the financial statements; $42,330,000 of Institutionally Funded Scholarship expenses. SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b $42,330,000 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 3 Program Services Higher Education 626225 Europe (including Iceland and Greenland) 1 2 Program Services Higher Education 153293 2 5 779518 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 45136 38475 6661 45136 38475 6661 All States Blue/Gold Gala 176750 97228 79522 0 0 0 0 0 9628 Golf Tournament 33890 24360 9530 0 0 4320 0 0 1717 0 210640 121588 89052 0 0 4320 0 0 11345 15665 73387 1 Tuition Waivers 183 2387681 Scholarships 11373 38605318 Grants in Aid 379 3253863 SchI_P01_S00_L02 Schedule I, Part I, Line 2 Financial Aid funds are awarded and monitored 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 342218 0 23678 0 405629 0 19600 0 19246 0 810371 0 737438 0 Eric B Weekes 208420 0 75 0 0 0 16800 0 9858 0 235153 0 217326 0 Martin Smith 191060 0 35635 0 0 0 15540 0 15692 0 257927 0 222161 0 Francis Ayers 188100 0 39901 0 9616 0 15000 0 238 0 252855 0 163803 0 Richard Heist 208560 0 75 0 0 0 16800 0 13942 0 239377 0 226555 0 Christina Frederick-Recascino 195450 0 75 0 0 0 15540 0 238 0 211303 0 200129 0 John Watret 180108 0 75 0 0 0 14832 0 22678 0 217693 0 0 0 Tim Brady 155475 0 75 0 0 0 29053 0 13942 0 198545 0 170814 0 Steven Ridder 165245 0 47575 0 99194 0 13230 0 19246 0 344490 0 272361 0 Reda Mankbadi 148539 0 75 0 37692 0 15095 0 19246 0 220647 0 215480 0 Donald Bishop 191550 0 75 0 4121 0 15504 0 10385 0 221635 0 0 0 Maj Mirmirani 192933 0 75 0 0 0 15339 0 238 0 208585 0 221047 0 Massoud Bazargan 144397 0 75 0 34399 0 12797 0 20546 0 212214 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a First class or charter travel - 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. Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 54960719 Capital Improvements 0 0 0 Volusia County Educational Facilities Authority 800000613 000928836 2003-08-21 39531252 Capital Improvements and refund 1992 bonds 0 0 0 Volusia County Educational Facilities Authority 590624416 1999-07-13 43283968 Capital Improvements and Refund 1992 0 0 0 Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 49583229 Refund 1996 Bonds 0 0 0 0 0 54960719 0 0 0 354198 1704665 0 41680876 0 0 2010 0 0 0 1 11140000 14306189 39531252 2936181 0 0 532768 1385514 0 22227902 0 0 1 0 1 1 2225000 28981442 43283968 4066013 0 0 508836 765588 0 11014163 0 0 0 1 1 1 7171000 43740473 49583229 8280508 0 0 321020 1537876 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0.0073 0.0073 1 0 0 1 1 1 0 0.0146 0.0146 1 0 0 1 1 1 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 John P Johnson Acquisition of residence X 1000000 444444 0 1 1 444444 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. 4637296 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. 490276 Approximately $336,000 were lease payments for office space, approximately $84,000 were utility payments on the leased office space and approximately $70,000 were aircraft charter payments. 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 50473 Aircraft charter payment for service provided at fair value in the ordinary course of business. 0 X 7 280 Sale of comparable properties X 5000 Cost of donated property X 500 Cost of donated property X 2 112871 Cost of donated property X 2 58038 Selling price of donated property X 11 1835 Sale of comparable items X 7 3557 Cost of donated property X Data processing and computer equipment 1 2807 Cost of donated property X Furniture and fixtures 1 307 Cost of donated property X Gift certificates and property 189 218323 Cost of donated property X Services 5 1392 Cost of donated property 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 Zimmerstr 23 Berlin GM 10969 Higher Education GM 0 68276 N/A Embry-Riddle Aeronautical University Singapore 150 Cecil Street 15-01 Singapore SN 069543 Higher Education SN 225000 295000 N/A ERAU Holdings Inc 600 South Clyde Morris Blvd Daytona Beach FL 32114 061638801 Holding Company FL N/A C 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0