2017-05-15T13:40:26-07:00 2016-06-30 990 2015-07-01 590936101 EMBRY-RIDDLE AERONAUTICAL UNIVERSITY INC EMBR 3862266000 600 South Clyde Morris Boulevard Daytona Beach FL 32114 Randall Howard Senior Vice President & CFO 3862266499 2017-05-15 2015 2021-01-29 14:40:06Z Randall B Howard 600 S Clyde Morris Blvd Daytona Beach FL 32114 504124670 0 X www.erau.edu X 1960 FL Embry-Riddle Aeronautical University is an independent, non-profit, culturally diverse institution providing quality education and research in aviation, aerospace, engineering and related fields leading to associate, bachelor's, master's and doctoral degrees. Our mission is to teach the science, practice and business of aviation and aerospace, preparing students for productive careers and leadership roles in service around the world. Our technologically, enriched, student-centered environment emphasizes learning through collaboration and teamwork, concern for ethical and responsible behavior, cultivation of analytical and management abilities, and a focus on the development of the professional skills needed for participation in a global community. Embry-Riddle is committed to providing a climate that facilitates the highest standards of academic achievement and knowledge discovery, in an interpersonal environment that supports the unique needs of each individual. 15 14 6487 0 25014 0 11471210 9612360 396551582 431382743 2597582 -1245399 597626 235451 411218000 439985155 65280798 76776903 0 0 205991494 206662867 35667 0 1250173 123736041 127984368 395044000 411424138 16174000 28561017 664084270 700372688 295322514 306389789 368761756 393982899 X 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 (Continued on Schedule O, Statement 2) 0 0 309373623 76776903 429939831 Embry-Riddle Aeronautical University provided comprehensive education leading to undergraduate,graduate, and doctoral degrees, seminars, short courses and research activity to part-time and full-time students. 0 0 0 309373623 1 1 0 1 0 0 0 1 0 1 1 0 0 0 1 1 1 1 1 1 1 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 0 0 1 445 0 1 6487 1 1 1 1 BR GM SN 0 0 0 1 1 0 0 0 0 X 15 14 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 Jare Allocco Allen Embry-Riddle Aeronautical University 3863238078 600 South Clyde Morris Boulevard Daytona Beach FL 32114 Mori Hosseini Board Member - Chairman 5 0 X X 0 0 0 James Henderson Board Member - Vice Chairman 5 0 X X 0 0 0 Joseph Martin Board Member - Treasurer 3 0 X X 0 0 0 Zane Rowe Board Member - Secretary 3 0 X X 0 0 0 John Amore Board Member 2 0 X 0 0 0 Kenneth Dufour Board Member 2 0 X 0 0 0 Charles Duva Board Member 2 0 X 0 0 0 Ronald Keys Board Member 2 0 X 0 0 0 Arthur J Lichte Board Member 2 0 X 0 0 0 Glenn S Ritchey Board Member 2 0 X 0 0 0 David Robertson Board Member 2 0 X 0 0 0 Jean G Rosanvallon Board Member 2 0 X 0 0 0 Jon Slangerup Board Member 2 0 X 0 0 0 Nicole Stott Board Member 2 0 X 0 0 0 David O'Maley Board Member 2 0 X 0 0 0 Karen Holbrook Board Member - Interim President 50 0 X X 0 0 0 Randall Howard Senior Vice President, CFO 40 0 X 400303 0 24126 John Watret Interim President-Chancellor, Worldwide 40 0 X 348187 0 41177 Richard Heist Chief Academic Officer, Daytona Beach Campus 40 0 X 305944 0 35878 Rodney Cruise Vice President Administration 40 0 X 279619 0 35903 Francis Ayers Chancellor, Prescott Campus 40 0 X 288018 0 24125 William Hampton Senior Vice President for External Relations & Chief Markting Officer 40 0 X 283620 0 31431 Bradford Sims Chancellor, Worldwide 40 0 X 236023 0 38763 Tim Brady Chancellor, Daytona Beach Campus 40 0 X 200952 0 30238 Brandon Young Vice President, CHRO 40 0 X 205226 0 35991 Charlie Sevastos Chief Legal Counsel 40 0 X 194937 0 25227 Louis Seno Vice President Corporate Relations & Govt Affairs 40 0 X 224080 0 13616 Steven Ridder Head Basketball Coach & Special Asst. President 40 0 X 477428 0 41177 Nancee Bailey Vice President Student Affairs 40 0 X 407852 0 18240 Scott Shappell Faculty 40 0 X 211646 0 36677 Susan Allen Distinguished Professor 40 0 X 208310 0 31248 Mark Balas Distinguished Professor 40 0 X 224607 0 27834 John P Johnson President 50 0 X 867330 0 35878 5364082 0 527529 244 1 1 0 Haskell Company 111 Riverside Avenue Jacksonville FL 32202 Construction Services 9494366 Perry McCall Construction Inc 6262 Greenland Rd Jacksonville FL 32258 Construction Services 7744386 Sodexo Inc and Affiliates 600 South Clyde Morris Blvd Daytona Beach FL 32114 Dining Services/Bldg Services 3572336 AM Weigel Construction Inc 166 South Palmetto Avenue Daytona Beach FL 32114 Construction Services 2673148 Kenson Construction Co Inc 6135 Corsair Ave Prescott AZ 86301 Construction Services 2096910 49 0 0 110582 0 6126360 3375418 387531 9612360 Higher Education 900099 431382743 431357729 25014 0 0 0 0 0 431382743 2076189 0 0 2076189 26067 0 0 26067 0 0 0 0 144940 0 0 0 144940 0 144940 0 0 144940 60301293 102584 62223471 1528061 -1922178 -1425477 -3347655 -1425477 0 -1922178 124024 110582 41092 82932 0 82932 0 0 0 0 0 0 354470 346891 7579 7579 0 0 0 439985155 429939831 25014 407950 0 0 76776903 76776903 0 0 0 0 5364079 1052414 4311665 0 0 0 0 0 152068674 115430200 35915853 722621 11607110 8587962 2965871 53277 26715079 19766168 6826288 122623 10907925 8070643 2787214 50068 0 0 0 0 183889 5136 178753 0 146813 146813 0 194000 194000 0 0 0 41333 0 41333 0 31151194 14730738 16351328 69128 1851153 1071820 761948 17385 8184813 4284550 3879438 20825 3147804 1529626 1617441 737 0 0 0 0 11426186 6335593 5090593 0 9717987 6617878 3000151 99958 0 0 0 0 754297 518532 217776 17989 5081480 4517557 563923 0 0 0 0 0 31672170 26103844 5568326 0 4096769 1700111 2396658 0 Fuel and oil 2958043 2846247 111796 0 Equipment Rental 14762801 7773471 6982947 6383 Miscellaneous 2613636 1654230 890227 69179 411424138 309373623 100800342 1250173 133846129 122647780 0 0 3264997 2586191 9161665 9215506 0 0 0 0 12786450 12147544 2868958 2867853 4081259 5420782 667324998 318412946 298938582 348912052 188908693 180415032 5653254 11172036 0 0 0 0 4574283 4987912 664084270 700372688 30660751 36709462 0 0 20509000 24540545 213946834 204242725 0 0 0 0 10929116 23451189 0 0 19276813 17445868 295322514 306389789 X 325026463 349948179 20712283 20340566 23023010 23694154 368761756 393982899 664084270 700372688 X 28561017 0 0 0 0 -3339874 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 194000 0 0 194000 0 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 programs that benefit students of private institutions within the State of Florida (e.g. the Florida Resident Access Grant program that provides scholarships to Florida residents who attend private institutions) and other state policy or funding issues that are of interest to the University. 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 within the Federal Aviation Administration [FAA] that will positively impact our students, as they progress through pilot or air traffic management educational programs - two areas heavily regulated by the FAA. We work to make the FAA aware of how potential policy changes affect our collegiate programs. 0 1576778 0 0 X X 0 93183000 16787000 -133000 2530000 0 0 107307000 87614000 2693000 3796000 920000 0 0 93183000 73660000 1056000 15008000 2110000 0 0 87614000 63052000 1935000 9379000 706000 0 0 73660000 62356000 2122000 -832000 594000 0 0 63052000 0.67 0.22 0.11 0 0 0 7526326 7526326 0 377286021 154747040 222538981 0 0 0 0 0 196192102 129758031 66434071 0 86320549 33907875 52412674 348912052 Advances for student loans and financial aid 9819394 Student deposits and advance payments 7626474 17445868 X 364942155 0 0 0 0 0 364942155 0 75043000 75043000 439985155 336381138 0 0 0 0 0 336381138 0 75043000 75043000 411424138 Schedule D, Part III, Line 4 Reference collections include accident investigation case files; technical papers, reports and reference materials. The collection is open for academic and public research. The public art collection is a series of 25 pieces of fine art including, but not limited to, sculptures, statues and paintings. This collection serves to enrich the cultural and educational environment of the University. Schedule D, Part V, Line 4 Endowment funds are used primarily for student scholarships. Schedule D, Part X, Line 2 The University is qualified as a not-for-profit organization under section 501(c)(3) of the Internal Revenue Code, as amended. Accordingly, the University is not subject to income taxes except to the extent it has taxable income from activities that are not related to its exempt purpose. No provision for income taxes was required for fiscal year 2016 or 2015. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by the University and recognize a tax liability (or asset) if the University has taken an uncertain tax position that more likely than not would not be sustained upon examination by the IRS. Management has analyzed the tax positions taken by the University, and has concluded that as of June 30, 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or Asset) or disclosure in the financial statements. The University is subject to routine audits by taxing jurisdiction; however, there are currently no audits for any tax periods in progress. Schedule D, Part XI, Line 4b $75,043,000 of institutionally funded scholarship expense was reported on the audited financial statements as a contra-revenue account. Schedule D, Part XII, Line 4b $75,043,000 of Institutionally Funded Scholarship expenses were reported on the financial statements as a contra-revenue account. 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 University does not discriminate on the basis of race, sex, color, national or ethnic origin, age, religion, disability, marital status, sexual orientation, genetic information, military status, or any other legally protected classification in the administration of any of its educational programs and activities or with respect to admission or employment. 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 13 Program Services Higher Education 3268638 Europe (including Iceland and Greenland) 1 2 Program Services Higher Education 60402 South America 1 1 Program Services Higher Education 57700 Central America and the Caribbean Investments 5500000 3 16 8886740 1 0 1 1 1 0 Blue Gold Gala 206806 96310 110496 0 0 0 0 0 33723 Golf Tournament 27800 14272 13528 0 0 7182 0 0 187 0 234606 110582 124024 0 0 7182 0 0 33910 41092 82932 1 City of Daytona Beach 301 S Ridgewood Ave Daytona Beach FL 32114 596000304 Government Entity 20000 0 Community support for construction of sidewalk on major roadway. County of Volusia c/o Library Support Center 1290 Indian Lake Rd Daytona Beach FL 32124 596000885 Government Entity 7500 0 Community support for technology at Daytona Beach City Island Library. Kiddie Hawk Air Academy Suite 100 4 West Dry Creek Circle Littleton CO 80120 841482078 501(c)(3) 20000 0 To support education awareness to youth in the aviation industry. 3 0 Financial Assistance 21584 76766903 FMV Grants and other assistance to individuals in the United States. All Financial Aid is applied directly to the students' outstanding receivable balances. No cash is physically transmitted. Credit balances that result from federal student and parent loan proceeds are distributed to the borrower within the specified time frame required by the regulations governing these programs. Eligibility for need-based grants, loans, and work-study forms of federal student aid is determined using the results of the federal methodology need analysis formula. Student aid awarded from both federal and institutional sources are monitored continuously throughout the fiscal year using various budget status reports, student account status reports, and deferral and institutional program reports. Schedule I, Part I, Line 2 Financial Aid funds are awarded and monitored by the Financial Aid Department. Research awards are monitored by the Office of Sponsored Research. X X X X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 John P Johnson President 472000 0 300130 0 95200 0 23850 0 12028 0 903208 0 0 0 Randall Howard Senior Vice President, CFO 370144 0 20130 0 10029 0 23850 0 276 0 424429 0 0 0 John Watret Interim President-Chancellor, Worldwide 321857 0 25130 0 1200 0 23850 0 17327 0 389364 0 0 0 Richard Heist Chief Academic Officer, Daytona Beach Campus 289614 0 15130 0 1200 0 23850 0 12028 0 341822 0 0 0 Rodney Cruise Vice President Administration 263289 0 15130 0 1200 0 23850 0 12053 0 315522 0 0 0 Francis Ayers Chancellor, Prescott Campus 266288 0 15130 0 6600 0 23850 0 275 0 312143 0 0 0 William Hampton Senior Vice President for External Relations & Chief Markting Officer 262290 0 20130 0 1200 0 23850 0 7581 0 315051 0 0 0 Bradford Sims Chancellor, Worldwide 219693 0 15130 0 1200 0 21436 0 17327 0 274786 0 0 0 Tim Brady Chancellor, Daytona Beach Campus 197622 0 2130 0 1200 0 18236 0 12002 0 231190 0 0 0 Brandon Young Vice President, CHRO 188896 0 15130 0 1200 0 18664 0 17327 0 241217 0 0 0 Charlie Sevastos Chief Legal Counsel 188607 0 5130 0 1200 0 17646 0 7581 0 220164 0 0 0 Louis Seno Vice President Corporate Relations & Govt Affairs 222750 0 130 0 1200 0 13365 0 251 0 237696 0 0 0 Steven Ridder Head Basketball Coach & Special Asst. President 408520 0 130 0 68778 0 23850 0 17327 0 518605 0 0 0 Nancee Bailey Vice President Student Affairs 164942 0 0 0 242910 0 12842 0 5398 0 426092 0 0 0 Scott Shappell Faculty 211516 0 130 0 0 0 19350 0 17327 0 248323 0 0 0 Susan Allen Distinguished Professor 208180 0 130 0 0 0 19231 0 12017 0 239558 0 0 0 Mark Balas Distinguished Professor 224477 0 130 0 0 0 20289 0 7545 0 252441 0 0 0 Schedule J, Part I, Line 1a First-class or charter travel - First-class or charter travel has been approved for the President and his spouse by the Compensation Committee of the Board of Trustees and as stated in the President's employment contract. Cabinet members and employees may also travel first class but must be approved in advance by the President. When it is not feasible to travel commercial class, charter travel may be used as approved by the President. Travel for companions - Companions of Cabinet members, Trustees, and other employees of the University may travel to functions or other events related to the ongoing business of the University. The University will reimburse for companion travel only when there is a bona fide business purpose for the presence of the companion. All companion travel to be reimbursed must be preapproved by an individual in the employee's supervisory chain who is a senior leader and by the Senior Vice President and Chief Financial Officer or President. Tax indemnification and gross-up payments - In expression of appreciation to all staff (including officers, key employees, and highest compensated employees) a nominal amount was paid as a bonus and grossed up for estimated taxes. The bonus was treated as fully taxable compensation. Housing allowance or residence for personal use - Housing allowance is provided to the President as approved by the Compensation Committee of the Board of Trustees and stated in the President's employment contract. Housing is provided to a key employee. The housing is furnished on the business premises of the University, at the convenience of the University, and the employee is required to accept such lodging as a condition of employment. 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 fundraising purposes. A Volusia County Educational Facilities Authority 800000613 928836KBO 2011-07-07 43010368 Refund 1999A&B Bonds 0 0 0 B Volusia County Educational Faciliies Authority 800000613 000000000 2013-11-08 25820000 Refund Series 2003 0 0 0 C Volusia County Educational Facilities Authority 800000613 000000000 2015-02-12 50740000 Partially Refund Series 2005 0 0 0 D Volusia County Educational Facilties Authority 800000613 928836KYO 2015-03-23 76273696 Construction and Capital Improvements 0 0 0 A 8615000 0 43010368 4200392 0 0 561230 521903 0 0 37726842 0 1 0 1 1 B 4496000 0 25820000 2582000 0 0 181750 0 0 0 23056250 0 1 0 1 1 C 1755000 0 50740000 0 0 0 324722 0 0 0 50415278 0 0 1 1 1 D 409300 0 76299686 0 0 0 773696 0 0 0 0 75525990 0 0 0 1 A 0 0 0 0 0 0 0 0 0 1 B 0 0 1 0 1 0 0 0.0146 0.0146 0 0 1 C 0 0 1 0 1 0 0 0.005 0.005 0 0 1 D 0 0 0 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 0 0 0 0 1 D 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 D 1 Schedule K, Part I, Column f-07/07/2011 43,010,368 Volusia County Educational Facilities Authority Series 2011 - Refunding - Series 1999A and 1999B issue dated 7/13/1999. Schedule K, Part I, Column f-11/08/2013 25,820,000 Volusia County Educational Faciliies Authority Series 2013 - Refunding Series 2003 Issue Dated 8/21/2003 Schedule K, Part I, Column f-02/12/2015 50,740,000 Volusia County Educational Facilities Authority Series 2015A - Partial Refunding - Series 2005 issue dated 8/18/2005 Schedule K, Part I, Column f-03/23/2015 76,273,696 Volusia County Educational Facilties Authority Series 2015B bonds other unspent proceeds include proceeds of issue and investment earnings. Schedule K, Part II, Line 11-07/07/2011 43,010,368 Volusia County Educational Facilities Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part II, Line 11-11/08/2013 25,820,000 Volusia County Educational Faciliies Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part II, Line 11-02/12/2015 50,740,000 Volusia County Educational Facilities Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part II, Line 12-03/23/2015 76,273,696 Volusia County Educational Facilties Authority The other unspent proceeds are the proceeds in the construction fund. Schedule K, Part IV, Line 2c-07/07/2011 43,010,368 Volusia County Educational Facilities Authority Rebate computations completed 6/30/16. Schedule K, Part IV, Line 2c-11/08/2013 25,820,000 Volusia County Educational Faciliies Authority Rebate computations completed 6/30/16. Schedule K, Part IV, Line 2c-02/12/2015 50,740,000 Volusia County Educational Facilities Authority Rebate computations completed 6/30/16. Schedule K, Part IV, Line 2c-03/23/2015 76,273,696 Volusia County Educational Facilties Authority Rebate computations completed 6/30/16. A Volusia County Educational Facilities Authority 800000613 000000000 2015-07-17 26535000 Partially Refund Series 2005 and Refund 1996A 0 0 0 A 0 0 26535000 0 0 0 105499 0 0 0 26429501 0 1 0 1 1 A 0 0 0 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 Schedule K, Part I, Column f-07/17/2015 26,535,000 Volusia County Educational Facilities Authority Series 2051C - Refunding - Partial refunding Series 2005 issue dated 8/18/2005 and refunding Series 1996A issue dated 4/11/1996. Schedule K, Part II, Line 11-07/17/2015 26,535,000 Volusia County Educational Facilities Authority The other spent proceeds are the refunding proceeds of the issue. Schedule K, Part IV, Line 2c-07/17/2015 26,535,000 Volusia County Educational Facilities Authority Rebate computations completed 6/30/16. HF Commercial Investments LLP Trustee Hosseini, Principal 278348 Lease office space 0 Intervest Construction Inc Trustee Hosseini, Principal 152083 Rent, insurance, utilities 0 X 7 7594 Sale of comparable properties X 1 528 Sale of comparable properties X 1300 Cost of donated property X 1735 Cost of donated property X 1 12075 Fair market value of property X 7 3200 Sale of comparable property X 14 1409 Cost of donated property X 4 1119 Cost of donated property X Equipment - Machinery 10 310036 Cost of donated property X Gift Certificates, real property 263 47454 Cost of donated property 0 0 1 0 Form 990, Part III (Cont. 1) 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. Form 990, Part VI, Section A, Line 3 The University delegated responsibility for dining, building and grounds maintenance to an independent contractor, Sodexo LLC. Form 990, Part VI, Section B, Line 11b Prior to filing, the Form 990 is reviewed by the Senior Vice-President/CFO and independent tax accountants at KPMG LLP. All members of the Board of Trustees are provided an electronic copy of the complete form. Form 990, Part VI, Section B, Line 12c The University's Internal Audit Department annually sends out and receives conflicts of interest disclosure forms from University employees and Board of Trustees. 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. 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 $200,000. The Vice President of Human Resources provides salary and benefit comparability data to the Chairman of the Board of Trustees who reviews the data with the Executive Committee of the Board of Trustees in relation to salary and benefits of the President and CEO. 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. The Form 990 and audited consolidated financial statements are disclosed on the University's website. Form 990, Part XI, Line 9 $3,339,874 Loss on extinguishment of debt - remaining VCEFA Series 2005 bonds were refunded by Series 2015C bonds on July 17, 2015. Embry-Riddle Europe GmbH Kurfuerstenstrasse 56 Berlin GM 10785 Higher Education GM 96155 200853 N/A Embry-Riddle Brasil Participacoes Ltda Rua Elvira Ferraz 260 CJ616 Sao Paulo BR 04552-040 Higher Education BR 0 102441 N/A Embry-Riddle Aeronautical University Asia LTD 75 Bukit Timah Road 02 01 02 Boon Siew Building Singapre SN 069543 980681431 Higher Education SN 501(c)(3) SCHOOL N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 Embry-Riddle Aeronautical University Asia LTD s 210000 CASH TRANSFER Embry-Riddle Aeronautical University Asia LTD q 96058 CASH TRANSFER