2011-05-10T15:36:03-07:00 2010-06-30 990 2009-07-01 590936101 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY INC EMBR 3862266256 600 South Clyde Morris Blvd Daytona Beach FL 32114 ERIC B WEEKES 3862266256 2011-05-10 2009 2016-02-24 21:20:13Z Dr John P Johnson 600 S Clyde Morris Blvd Daytona Beach FL 32114 327537721 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 serves 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 6335 0 1476337 77174 7013000 4111000 297313000 315611909 1474000 1779000 2911000 3463091 308711000 324965000 40592000 40645000 0 0 158808000 154655000 0 53621 1611714 105544000 104090379 304944000 299444000 3767000 25521000 416791000 439830000 225779000 223297000 191012000 216533000 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 serves 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 219968994 38855000 324965000 Embry-Riddle Aeronautical University provided comprehensive education leading to undergraduate and graduate degrees, seminars, short courses and research activity to 22,806 part-time and full-time students. 0 0 0 219968994 1 1 0 1 0 0 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 1 228 0 1 6335 1 1 1 1 GM SN 0 0 0 1 1 0 0 0 0 1 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 Eleanor Baum 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 John O'Brien 3 X 0 0 0 Glenn Ritchey 2 X 0 0 0 David Robertson 2 X 0 0 0 Jean Rosanvallon 2 X 0 0 0 Louis Seno 2 X 0 0 0 John Amore 2 X 0 0 0 Ron Keys 2 X 0 0 0 Zane Rowe 2 X 0 0 0 John P Johnson 50 X 708505 0 0 Eric Weekes 40 X 202218 0 0 Richard Heist 40 X 205358 0 0 Martin Smith 40 X 190810 0 0 Daniel Carrell 40 X 202371 0 0 Francis Ayers 40 X 151855 0 0 Tim Brady 40 X 151360 0 0 Steven Ridder 40 X 248690 0 0 Maj Mirmirani 40 X 205627 0 0 Reda Mankbadi 40 X 190588 0 0 Christina Frederick-Recascino 40 X 192998 0 0 Michael Murray 40 X 172755 0 0 2823135 0 0 155 0 1 0 Brown and Brown Inc PO Box 2412 Daytona Beach FL 32115 Insurance and Consulting Services 4938521 Florida Health Care Plan Inc PO Box 9910 Daytona Beach FL 32120 Insurance Services 2860169 Sodexo Inc & Affiliates 600 South Clyde Morris Blvd Daytona Beach FL 32114 Dining Services 2200605 WFF Facility Services PO Box 958204 St Louis MO 63195 Cleaning Services 1159641 Sungard Availability Services PO Box 91233 Chicago IL 60693 Information Technology Services 823376 33 10900 0 91981 0 3864000 144119 838980 4111000 Higher Education 611310 315611909 315590321 21588 0 0 0 0 0 315611909 1702000 1702000 0 0 115000 115000 0 0 0 0 0 0 2861114 0 0 0 2861114 0 2861114 1406365 1454749 0 0 754000 0 792000 0 -38000 -38000 -38000 0 0 59698 91981 21721 37977 37977 0 0 0 0 0 0 0 0 2323000 1759000 564000 564000 0 0 0 324965000 319377663 1476337 0 0 0 40645000 40645000 0 0 0 0 1812000 0 1812000 0 0 0 0 0 117573000 92313000 24282000 978000 6880000 5297000 1514000 69000 18959000 14598000 4171000 190000 9431000 7293000 2061000 77000 0 0 0 0 672000 0 672000 0 170000 0 170000 0 274836 0 274836 0 53621 53621 72500 0 72500 0 20818043 11453994 9280956 83093 1898000 1692000 206000 0 5722000 2664000 3038000 20000 2710000 1229000 1480000 1000 12000 8000 4000 0 5903000 2729000 3174000 0 5203000 3672000 1431000 100000 0 0 0 0 512000 268000 240000 4000 8168000 0 8168000 0 0 0 0 0 21929000 17716000 4213000 0 4753000 2358000 2395000 0 Fuel and Oil 3062000 2925000 137000 0 Equipment Rental 14235000 8154000 6080000 1000 Rent 5198000 2863000 2335000 0 Miscellaneous 2556000 1869000 652000 35000 Loan Programs 222000 222000 0 0 299444000 219968994 77863292 1611714 62254000 97431000 0 0 4780000 4692000 8053804 8012019 1206196 868981 0 0 11862000 12297000 2737000 2568000 3894000 2036000 426404000 213498000 224562000 212906000 0 0 90363000 91679000 0 0 0 7079000 7340000 416791000 439830000 33074000 33336000 0 0 4666000 4719000 171021000 167885000 0 0 0 0 2266000 2023000 0 0 14752000 15334000 225779000 223297000 X 170811000 192025000 8352000 11092000 11849000 13416000 191012000 216533000 416791000 439830000 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 1 500 0 1 334536 0 0 335036 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 (FRAG), 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. Some federal initiatives we have worked on in the past year include: garnering continued support for a NASA Teacher Resource Center at our Prescott, Arizona Campus, and obtaining funding for unmanned systems research project in partnership with NOAA. In addition to program advocacy, our federal lobbying efforts also focus on advocating for policy development within 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. 40964000 1574000 6390000 731000 0 0 48197000 49572000 451000 -8243000 816000 0 0 40964000 0.66 0.34 0 0 0 9245000 0 9245000 264268000 0 100013000 164255000 0 0 0 0 118155000 0 95529000 22626000 34736000 0 17956000 16780000 212906000 Mutual Funds 64231000 F Deposits with Fiduciaries 27448000 F 91679000 Unamortized bond issue costs 6239000 Other assets 1101000 7340000 0 Advances for student loans and financial aid 9823000 Student deposits and advance payments 5511000 15334000 324965000 299444000 25521000 0 0 0 0 0 0 25521000 285968000 0 0 0 0 0 285968000 0 38997000 38997000 324965000 260447000 0 0 0 0 0 260447000 0 38997000 38997000 299444000 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Endowment funds are used primarily for student scholarships. SchD_P10_S00_L00 Schedule D, Part X Description of Tax Positions: 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. Our 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 2010, total undergraduate enrollment at the two residential campuses was 6080, graduate enrollment was 551, total full time faculty was 453, total part time faculty was 2873, and total staff members were 1,398. Students have 35 degree programs to choose from at two residential campuses and more than 130 Worldwide Campus locations. Total degrees awarded in 2009/2010 were 5,277. Our 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 87.29%. Student related revenue for Bookstore, Food Service and Housing is at 7.33%, for a total of 94.31% 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. Our 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 amounts are reported as contra-revenue on the financial statements; $38,855,000 of Institutionally Funded Scholarship expenses and $142,000 of non-operating expense activities. SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b $38,855,000 of Institutionally Funded Scholarship expenses were reported on the financial statements as a contra-revenue amount. $142,000 of expenses were reported on the financial statements in Other Nonoperating activities. 1 1 1 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. 1 1 1 1 0 0 0 0 0 0 0 0 1 0 The University receives financial assistance from Federal and State agencies for student financial aid and academic research. 1 East Asia and the Pacific 1 2 Program Services Higher Education 22787 Europe (including Iceland and Greenland) 1 2 Program Services Higher Education 125587 2 4 148374 X X X X X X X 1 Aria Calls and Cards Coordinates telephone fundraising activities 1 55813 53621 2192 55813 53621 2192 All States Blue/Gold Gala 124997 78342 46655 0 0 0 0 0 12228 Golf Tournament 26682 13639 13043 0 0 8451 0 0 1043 0 151679 91981 59698 0 0 8451 0 0 13271 21722 37976 1 Tuition Waivers 141 2150000 Scholarships 6873 35356000 Grants in Aid 350 3139000 SchI_P01_S00_L02 Schedule I, Part I, Line 2 All expenditures X X X X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 John P Johnson 298140 0 0 0 410365 0 11077 0 17856 0 737438 0 494113 0 Eric Weekes 195420 0 6798 0 0 0 7200 0 7908 0 217326 0 219272 0 Richard Heist 198560 0 6798 0 0 0 7385 0 13812 0 226555 0 230545 0 Martin Smith 190810 0 0 0 0 0 15540 0 15811 0 222161 0 224948 0 Daniel Carrell 202371 0 0 0 0 0 16308 0 6925 0 225604 0 203340 0 Francis Ayers 151855 0 0 0 0 0 11648 0 300 0 163803 0 0 0 Tim Brady 129968 0 0 0 21392 0 5642 0 13812 0 170814 0 178593 0 Steven Ridder 156887 0 37500 0 54303 0 5815 0 17856 0 272361 0 285898 0 Maj Mirmirani 205627 0 0 0 0 0 15120 0 300 0 221047 0 205741 0 Reda Mankbadi 184206 0 0 0 6382 0 7036 0 17856 0 215480 0 252073 0 Christina Frederick-Recascino 186200 0 6798 0 0 0 6831 0 300 0 200129 0 0 0 Michael Murray 172755 0 0 0 0 0 12960 0 11617 0 197332 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 000928836 2003-08-21 39531252 Capital Improvements and Refund 1992 Bonds 0 0 Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 54960719 Capital Improvements 0 0 Volusia County Educational Facilities Authority 590624416 1999-07-13 43283968 Capital Improvements and Refund 1992 Bonds 0 0 Volusia County Educational Facilities Authority 800000613 928836JK2 2005-08-18 49583229 Refund 1996 Bonds 0 0 39531252 1078880 14306189 0 1918282 0 22227902 1 0 1 1 54960719 4415924 0 6805057 2058862 0 41680876 2010 0 0 0 1 43283968 2013940 28981442 0 1274424 0 11014163 0 1 1 1 49583229 3983859 43740473 0 1858896 0 0 0 1 1 1 0 0 1 1 1 0 0.0146 0.0146 1 0 0 1 1 1 0 0.0073 0.0073 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 666666 0 1 1 Steve Ridder Bridge loan for residence X 205000 202981 0 1 1 869647 Brown and Brown Inc Trustee Henderson is 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 is a principal of Brown and Brown. 4909721 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. 415243 Approximately $300,000 were lease payments for office space and approximately $115,000 were reimbursements for other expenses. These services were provided at fair value in the ordinary course of business. 0 Jay Adams Former Board Member 82792 Family member of former Board Member is working for ERAU. The payments were for employee compensation. 0 X 6 11555 Sale of Comparable Items X 8126 Cost of Donated Property X 1 23000 Cost of Donated Property X 1 25000 Cost of Donated Property X 2 189365 Cost of Donated Property X 10 499897 Selling Price of Donated Property X 8 1670 Sale of Comparable Properties X 9 6212 Cost of Donated Property X Other - Equipment 4 44524 Cost of Donated Property X Other Gift Certificates and Tickets 124 29631 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_L11 Form 990, Part VI, Section B, Line 11 Form 990 was completed by University staff and forwarded to the Audit Committe 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 Committe 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 then 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 $100,000.00. 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. SchK_P02_S00_L05 Schedule K, Part II, Line 5 Issuance Costs from Proceeds; A - $1,274,424 includes $508,836 used for bond issuance costs and $765,588 used for credit enhancement; B - $1,918,282 includes $532,768 used for bond issuance costs and $1,385,514 used for credit enhancement; C - $2,058,862 includes $354,198 used for bond issuance costs and $1,704,664 used for credit enhancement; D - $1,858,896 includes $321,020 used for bond issuance costs and $1,537,876 used for credit enhancement. ERAU Deutschland GmbH Zimmerstr 23 Berlin GM 10969 Higher Education GM 0 116390 N/A Embry-Riddle Aeronautical University Singapore 45 Tampines Avenue 1 06-12 Temasek Green SN 529763 Higher Education SN 0 285646 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0