2019-05-14T13:50:41-05:00 2018-06-30 363990892 Capin Crouse LLP 1255 Lakes Parkway Suite 130 Lawrenceville GA 30043 990 2017-07-01 430719506 Covenant College COVE 7068201560 14049 Scenic Highway Lookout Mountain GA 30750 Fred Verwoerd VP Operations & Finance, CFO 7068201560 2019-05-14 1 David C Moja P00747006 6785185301 139.146.132.42 2019-05-14 14:50:34 ED P 49F1A104B7356211C74F5F0EBB19BF5D87CEA4A3 548ACF343268F06152720E5FC70889BA4855F684 2017 2019-02-21 02:37:17Z J Derek Halvorson 14049 Scenic Highway Lookout Mountain GA 30750 56744222 0 X www.covenant.edu X 1955 GA To provide Christ-centered higher educational services. 26 26 1188 27 2745 0 7927667 8511423 40697562 42360611 448166 1767026 1202919 3631670 50276314 56270730 16813117 18319606 0 0 18338644 19009147 1500 1250 1685776 11743005 13291125 46896266 50621128 3380048 5649602 98285174 100341114 14049860 9808416 84235314 90532698 X To explore and express the preeminence of Jesus Christ in all things; to educate Christians to engage culture and cultures; to examine and unfold creation; and to pursue biblical justice and mercy in community with the student-faculty relationship, (continued on Schedule O) strong teaching, and scholarship at the foundation. Our Christ-centered community seeks to help students mature in three primary areas: identity in Christ, Biblical frame of reference, and service that is Christ-like. 0 0 28289726 18319606 29439276 Instructional expenses: These expenses relate directly to the academic disciplines of the College. With approximately thirty majors, two master's programs, and more than fifty minors and concentrations, Covenant College provided nearly 1,100 students with a well-rounded liberal arts education while simultaneously preparing them for careers or advanced degrees in theology, medicine, business, art, music, engineering, education, psychology, international relations, and much more. 7654865 7965920 Auxiliary enterprises and independent operations: The College's four residence halls, student apartments, and dining hall compose the auxiliary enterprises. While all of the halls offer a close, supportive community of students, each building has its own distinctive personality and each floor has its own identity and traditions. Additionally, the College hosts camps and conferences and has an onsite gift shop filled with Covenant apparel, classroom supplies, snacks and other items. The camps and conferences as well as the gift shop are included in independent operations. 6343544 6601313 Student services: Student services at Covenant help create a rich learning environment for our students. From the moment a student becomes interested in attending Covenant, the admissions office provides him or her with resources and personalized attention to help each student make an informed and thoughtful decision about where to attend college.The student development office fosters a positive residential experience through intentional training with resident assistants, hall presidents, and dorm councils. (continued on Schedule O) In addition to campus activities, student development offers student training programs,individual academic counsel, professional counseling and medical services to students. Our records and financial aid offices personally work with students to ensure they are on track for graduation and are financially able to complete their education at Covenant. Students have access to the Center for Calling & Career, where they learn to build a resume, write a cover letter, interview well, and network with future employers.Covenant is a vibrant member of NCAA Division III athletics with approximately one-third of our students participating in intercollegiate athletics. 1896726 1973799 Academic support: The College works to provide students with academic support at every stage of their Covenant education. In addition to highly qualified staff, the Covenant library is networked with more than 18,000 other institutions worldwide, providing interlibrary loan access and document delivery services to over 1.3 billion library items. Our library was eleventh in the world to go live with the Online Computer Library Center's new cloud-based operating system, Web-scale Management Service. Covenant's writing center is located in the library, providing students one-on-one tutoring for essays, research papers, and any writing-related assignments. The Office of Academic Affairs at Covenant works to provide support for deans and faculty members as they seek to provide a rigorous education to Covenant students. Covenant's master of education and master of arts in teaching degrees offered by the graduate school of education at Covenant provide students with the exceptional opportunity of completing a master's degree in one year.Covenant's Maclellan Scholars program offers courses designed to encourage critical thinking and develop the skills of potential Christian leaders. Students in the program travel internationally while at Covenant and demonstrate leadership through student-initiated projects. 1896726 1973799 44184861 1 1 0 0 0 0 0 1 1 1 1 0 0 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 0 0 1 1 0 0 0 1 1476 0 1 1188 1 1 1 0 0 0 0 0 0 0 0 0 0 X 26 26 1 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 GA X Jamie Gross 7064191136 14049 Scenic Highway Lookout Mountain GA 30750 Richard Bowser Chairman 1.00 1.00 X X 0 0 0 Craig Wood Vice Chairman 1.00 1.00 X X 0 0 0 Dr Robert Rayburn Secretary 1.00 X X 0 0 0 Martin Moore Treasurer 1.00 1.00 X X 0 0 0 Bill Borger Trustee (part year) 1.00 X 0 0 0 Howard Brown Trustee 1.00 X 0 0 0 William Burdette Trustee 1.00 1.00 X 0 0 0 David Caines Trustee 1.00 X 0 0 0 Dr Render Caines Trustee 1.00 X 0 0 0 Bob Curtis Trustee 1.00 X 0 0 0 Mark Griggs Trustee 1.00 1.00 X 0 0 0 Dr Bradley Harris Trustee 1.00 X 0 0 0 Rev Eric Hausler Trustee 1.00 X 0 0 0 Duncan Highmark Trustee 1.00 X 0 0 0 Rob Jenks Trustee 1.00 X 0 0 0 Rev Ralph Kelley Trustee 1.00 X 0 0 0 Rev Lance Lewis Trustee 1.00 X 0 0 0 David Lucas Trustee 1.00 1.00 X 0 0 0 Rev Julian Russell Trustee 1.00 X 0 0 0 Dr Gordon Sluis Trustee 1.00 X 0 0 0 Rev Steve Smallman Jr Trustee 1.00 X 0 0 0 Sam R Smartt Jr Trustee 1.00 1.00 X 0 0 0 Rev Kevin Smith Trustee 1.00 X 0 0 0 Dr Bryce Sullivan Trustee 1.00 X 0 0 0 Dr A Craig Troxel Trustee 1.00 X 0 0 0 Robert Wilkinson Trustee 1.00 X 0 0 0 J Allen Wright Trustee 1.00 1.00 X 0 0 0 Dr J Derek Halvorson President 40.00 1.00 X 260707 0 31764 Daniel Wykoff CFO (part year) 40.00 1.00 X 121207 0 27068 Marc Erickson Dir of Covenant College Fd 1.00 40.00 X 138113 0 70818 Jeff Hall VP of Academic Affairs 40.00 X 126168 0 30498 Jeff Sandhoff VP for Advancement 40.00 X 124574 0 27343 Brad Voyles VP for Student Development 40.00 X 109638 0 26855 Brian Fikkert Faculty 40.00 X 103806 0 28524 984213 0 242870 13 0 1 0 Brasfield & Gorrie LLC 3021 7th Avenue South Birmingham AL 35233 Construction 6685205 Chartwells Dining Services PO Box 417632 Boston MA 022417632 Food Service 2892469 Lord-Aeck-Sargent 1175 Peachtree Street NE Suite 240 Atlanta GA 30361 Construction 224205 Anderson Landscape Management Inc 104 Leon Lane Rising Fawn GA 30738 Construction 159486 Premier Transportation LLC 1500 Breda Drive Knoxville TN 37918 Transportation 113542 7 433888 400544 7676991 160872 8511423 Tuition and fees 611310 33136469 33136469 Auxiliary enterprises 611310 7531533 7531533 Conference program 611310 1280250 1280250 412359 412359 42360611 563315 2745 560570 73600 61627 11973 11973 11973 1612552 3024 411865 0 1200687 3024 1203711 1203711 Tax Credit Revenue 900099 3404376 3404376 215321 215321 3619697 56270730 45980308 2745 1776254 15100 15100 18304506 18304506 378172 99615 178942 99615 14260847 11913554 1479065 868228 492005 403836 51778 36391 2970789 2445277 354437 171075 907334 725321 116482 65531 93843 92848 995 111042 107317 3725 1250 1250 107911 107911 1485268 876153 542177 66938 60707 53004 6119 1584 1351854 970313 287717 93824 370240 157390 212850 1480747 1250284 207607 22856 960057 743476 82249 134332 145327 51080 39180 55067 255104 255104 3408693 3113561 272678 22454 95623 37316 58307 Food services & events 3002733 2956768 27647 18318 361976 68307 270076 23593 50621128 44184861 4750491 1685776 X 296729 123279 392185 729735 15744 5000 1428327 1537135 95242 62500 74001 42389 97396 111809 284186 255415 105771230 41543294 63722634 64227936 28742748 30081765 792193 1055593 2214282 2108558 129507 0 98285174 100341114 2376695 1187058 1876684 2684943 5810527 326953 336326 1725000 3803750 1934001 1796339 14049860 9808416 X 59508179 64190200 24727135 26342498 84235314 90532698 98285174 100341114 5649602 647782 0 X X 0 1 X 1 1 1 X 5138740 9452710 6470680 7927667 8511423 37501220 5138740 9452710 6470680 7927667 8511423 37501220 3958675 33542545 596340 382414 299996 419074 634170 2331994 2736 2736 161745 199418 764149 1217599 3404376 5747287 45583237 201212592 0.73590 0.81930 X Schedule A, Part II, Line 10, Explanation of Other Income: Other income - 2013 Amount: $ 161,745. 2014 Amount: $ 199,418. 2015 Amount: $ 764,149. 2016 Amount: $ 1,217,599. 2017 Amount: $ 3,404,376. Schedule A, Part II: The organization is a school as described under 170(b)(1)(A)(ii) and is not required to complete a public support schedule. Schedule A, Part II is completed to verify the School can qualify under public charity status section 170(b)(1)(A)(vi) and, therefore, qualifies to use the first listed special rule for Schedule B reporting. 38500 X X 0 0 1 X 39286339 1912350 2915489 1520209 545963 42048006 34135905 1924571 4599825 997425 376537 39286339 35879650 596682 -1145810 773235 421382 34135905 30808220 5744748 263088 373192 563214 35879650 26576823 1006870 4373748 741355 407866 30808220 0.21580 0.78420 0 1 1 1892595 1892595 92863821 34122208 58741613 10855767 7421086 3434681 159047 159047 64227936 Funds held in federal loan programs 1796339 1796339 Part III, Line 4: The College was gifted a collection of Audubon art prints, which promote the arts to students and the public. Part IV, Line 2b: Deposits held in custody represent amounts held as agency accounts for various College clubs and activities. Part V, Line 4: Endowment funds are invested to produce income, which is used to fund scholarships, pay for salary and general operation expenses, and maintain facilities. Form 990, Schedule D, Part V, Lines 2a-2c: In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 6/30/2018. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have included the net asset categories in our audited financial statements on existing Form 990, Schedule D, Part V, Lines 2a-2c as follows: Line 2a - Without donor restrictions Line 2b - With donor restrictions 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 The policy is included in the graduate and undergraduate catalogs, the college website, the college application for admission, and college advertising. Schedule E, Part I, Line 6 The college receives assistance from the following federal programs: Federal Supplemental Educational Opportunity Grant, Federal Work Study, Federal Perkins Loan Program, Federal Pell Grant Program, Federal Direct Loan Program, and Federal Teach Grant Program. Europe (Including Iceland & Greenland) 0 0 Program services Study abroad program 157210 East Asia and the Pacific 0 0 Program services Study abroad program 17100 Middle East and North Africa 0 0 Program services Study abroad program 15700 Central America and the Caribbean 0 0 Program services Study abroad program 13600 South America 0 0 Program services Study abroad program 39050 0 0 0 0 0 0 242660 0 242660 0 0 0 0 0 0 Part I, line 3: The College tracked expenditures in accordance with accrual basis of accounting. Tuition and fees schedules for the students' studies were used for the study abroad programs. 1 Federal grantor/pass-through grantor/program and student financial aid from the College. 1037 18304506 Part I, Line 2: The College provides scholarships to students enrolled in its programs. Scholarships are awarded based upon student achievements in academics and performing arts. To be considered for scholarship assistance, students must apply for admission and submit academic transcripts of prior education work, test scores (ACT/SAT), and an application for the scholarship program. Some scholarships require additional recommendations or certifications by third parties. Academic progress of scholarship recipients is monitored, and recipients must earn both a minimum amount of college credits and a minimum GPA each semester in order to maintain eligibility. Scholarships are applied directly to student accounts. X X X 1 1 X X 0 0 0 0 0 0 0 0 0 Dr J Derek Halvorson President 260707 0 0 0 0 0 11781 0 24852 0 297340 0 0 0 Marc Erickson Dir of Covenant College Fd 138113 0 0 0 0 0 6600 0 64891 0 209604 0 0 0 Jeff Hall VP of Academic Affairs 126168 0 0 0 0 0 6899 0 24021 0 157088 0 0 0 Jeff Sandhoff VP for Advancement 124574 0 0 0 0 0 6386 0 21610 0 152570 0 0 0 Part I, Line 1a The President's wife travels with him on occasion, and this is included in his taxable income. Tax indemnification and gross up benefits are provided for the President, VP of Advancement and the Director of the Covenant College Foundation, and this is included in their taxable income. Club dues are reimbursed for the President, VP of Advancement and Director of the Covenant College Foundation, and this is included in taxable income. Derek Halvorson President of Covenant College Housing loan X 125000 62500 0 1 1 62500 5520 Tuition assistance Financial assistance X 1 3042 FMV X 16 157830 FMV 0 0 1 0 Part I, Column (b): The number of contributions represent the number of contributions received, not the number of items donated. Form 990, Part VI, Section A, line 1 The Executive Committee is composed of the four officers of the Board, the Chair of the Trustee Development/Spiritual Life Committee, and five other trustees as determined by the Board Chairman, the College President, and the Trustee Development/Spiritual Life Committee Chairman. The Board of Trustees may delegate to the Executive Committee any of the powers and authority of the Board in the management of the business affairs of the Corporation. The Executive Committee transactions shall be reported regularly to the Board of Trustees and are subject to ratification. Form 990, Part VI, Section A, line 2 Dr. Render Caines and David Caines have a family relationship. Sam Smartt, Jr. and David Caines have a family relationship. Form 990, Part VI, Section A, line 7a The General Assembly of the PCA elects members to the Board of Trustees and fills vacancies. The Assembly may, at its discretion, increase or decrease the number of Trustees. Form 990, Part VI, Section B, line 11b Form 990 is prepared by an independent CPA firm and reviewed in detail by the organization's top management. The reviewed Form 990 is then provided to the board of directors prior to filing with the IRS. Form 990, Part VI, Section B, line 12c The officers, directors, and committee members with Board delegated powers are required to sign a disclosure form annually. The Executive Committee reviews the signed statements and enforces compliance with the conflict of interest policy. Any board member with a conflict of interest abstains from voting on matters in which there could be a conflict of interest. Form 990, Part VI, Section B, line 15 Annually, the independent Executive Committee reviews the President's salary in comparison with salary studies before submitting the proposed salary to the governing Board of Trustees for approval. This review and approval is documented in the Executive Committee meeting minutes. The independent President uses comparability data to determine compensation for the College's officers and executives. This process is documented. Form 990, Part VI, Section C, line 19 The College's governing documents, conflict of interest policy, and financial statements are made available upon request. Part X, Lines 27-29 The organization has elected to early adopt the principles of FASB ASU 2016-14 (ASC 958) for its audited financial statements for the period ended 6/30/2018. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have included the net asset categories in our audited financial statements on existing Form 990, Part X, Lines 27-29 as follows: Net assets without donor restrictions $64,190,200 Net assets with donor restrictions 26,342,498 Total net assets $90,532,698 Line 27 Unrestricted net assets $64,190,200 Line 28 Temporarily restricted net assets 0 Line 29 Permanently restricted net assets 26,342,495 Total net assets $90,532,498 Form 990, Part XII, Line 2c: The organization's Board assumes responsibility for oversight of the audit of its financial statements and selection of its independent accountant. This process has not changed since the prior year. Carter Hall Landlord LLC 14049 Scenic Highway Lookout Mountain GA 30750 300885287 Residence hall and dining hall services for Covenant College students GA 5438578 42279044 Covenant College Carter Hall Manager LLC 14049 Scenic Highway Lookout Mountain GA 30750 475304636 Residence hall and dining hall services for Covenant College students GA 54386 422790 Covenant College Covenant College Foundation Inc 14049 Scenic Highway Lookout Mountain GA 30750 273298736 Supporting Organization GA 501(c)(3) 12, Type II Covenant College 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 Covenant College Foundation Inc C Covenant College Foundation Inc M Covenant College Foundation Inc N Covenant College Foundation Inc O Covenant College Foundation Inc Q