2016-05-16T10:39:12-07:00 2015-06-30 990 2014-07-01 362191242 CONCORDIA UNIVERSITY CONC 7087718300 7400 Augusta Street River Forest IL 603051499 Tom Hallett CFO and VP of Finance 7082093350 2016-05-13 2014 2016-08-17 19:52:53Z Concordia University Chicago Tom Hallett 7400 Augusta Street River Forest IL 60305 78977765 0 X www.cuchicago.edu X 1864 IL Founded in 1864, Concordia University Chicago is a liberal arts-based Christian university located in River Forest, Illinois. Rooted in its Christian heritage of engaging knowledge and faith, the University aspires to be the destination university for all who seek to develop their full individual potential through a distinctive, innovative and dynamic environment of exploration, creativity and discovery for leading lives of servant-minded leadership. More than 5,000 full-time students are enrolled in more than 100 undergraduate, master's and doctoral programs. Concordia-Chicago ensures that 100 percent of undergraduate students receive some form of financial aid and actively develops additional need-based scholarship support for local students. It also manages outreach to historically underrepresented student populations, working specifically with elementary and middle school students and families to ensure they are prepared to enter college in the future. 16 16 1628 1150 0 0 5209024 5196588 72297726 73539631 51227 26263 -173742 -196732 77384235 78565750 16549183 16708465 0 0 37153949 37619849 0 0 1288161 22032431 22893486 75735563 77221800 1648672 1343950 63033782 59704659 51971593 47361124 11062189 12343535 As a distinctive, comprehensive university of The Lutheran Church Missouri Synod, centered in the Gospel of Jesus Christ, and based in the liberal arts, Concordia University equips men and women to serve and lead with integrity, creativity, competence, and compassion in a diverse, interconnected, and increasingly urbanized church and world. 0 0 61324581 16708465 65990879 Education, General and Other - Operation of higher education and instruction divisions including support programs devoted to religious education, encouragement and understanding for both Master's level and doctoral graduate students, as well as undergraduate students. (Fall 2014 Total Enrollment - 5,038) 4639747 0 4990813 College student room and board - Concordia University Chicago, like most other colleges/universities, provides room and board to its students. During this reporting period, the University dorms were near full capacity, with approximately 585 students living in campus residence halls. 3256603 0 398596 Conferences, Workshops, and Other University Events - Each fiscal year, Concordia University Chicago hosts several events which contribute to the accomplishment of the University's mission. Events include educational conferences, workshops, student led theatre productions and athletic events. Not only do these events enhance our students' educational experience, but they also help educate individuals from the overall community. The largest single event the University hosts each fiscal year is the Concordia University Chicago Early Childhood Teachers' Conference. This conference, held in the summer, invites current Early Childhood Teachers, many of whom are our graduates, to share and learn about new Early Childhood instructional approaches, etc. 2151095 0 2159343 Early Childhood Education, General/Other: Operation of childcare, early childhood, and primary programs for children, all of which includes a strong educational component, as well as a Christian core value component. Last year, the Early Childhood Center served nearly 600 children. 2151095 0 2159343 71372026 1 1 0 1 0 0 0 1 0 1 1 0 0 0 1 1 0 1 1 0 1 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 236 0 1628 1 0 0 0 0 0 1 1 0 0 0 0 X 16 16 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Tom Hallett 7082093350 7400 Augusta Street River Forest IL 603051499 Dr C Ross Betts Board Member 1 0 X 0 0 0 Dr Gary Bertels Board Member 1 0 X 0 0 0 Rev Roger Gallup Board Member 1 0 X 0 0 0 Rev Dan Gilbert Chair Board 3 0 X X 0 0 0 Mr James Grebe Secretary Board 3 0 X X 0 0 0 Dr Debra Grime Board Member 1 0 X 0 0 0 Mr Eric Hiller Board Member 1 0 X 0 0 0 Mr E Theodore Lams Board Member 1 0 X 0 0 0 Mr Thomas McCain Board Member 1 0 X 0 0 0 Mr Mark Muehl Board Member 1 0 X 0 0 0 Mr Angel Sales Board Member 1 0 X 0 0 0 Mr Dominic Salvino Board Member 1 0 X 0 0 0 Mr Mark Stern Vice Chair Board 3 0 X X 0 0 0 Dr Bruce Schultz Board Member 1 0 X 0 0 0 Dr Carl Springer Board Member 1 0 X 0 0 0 Ms Elizabeth Vernick Board Member 1 0 X 0 0 0 Mr Kirk Farney Vice Chair Board 3 0 X X X 0 0 0 Mrs Mary Lintvedt Board Member 1 0 X X 0 0 0 Mr Chris Nelson Board Member 1 0 X X 0 0 0 Mr Orlando Pabon Board Member 1 0 X X 0 0 0 Rev Gerald Schalk Board Member 1 0 X X 0 0 0 Dr John Johnson President/CEO/COO - Retired 48 2 X X 37985 0 8360 Dr Daniel Gard President/CEO/COO 48 2 X 72233 0 56705 Mr Tom Hallett Vice President/CFO 48 2 X 148906 0 38775 Ms Evelyn Burdick Vice President 50 0 X 154882 0 24417 Dr Craig Schilling Faculty 40 0 X 143336 0 9308 Dr Marilyn Reineck Vice President 50 0 X 143580 0 22923 Mr Alan Meyer Sr Vice President 50 0 X 157902 0 24943 Mr James Miller Sr Vice President 45 5 X 166656 0 39413 1025480 0 224844 24 1 1 0 Ragnar Benson LLC 250 S Northwest Hwy Park Ridge IL 60068 Construction management 2332322 Franczek Radelet PC 300 S Wacker Dr Suite 3400 Chicago IL 60606 Legal services 212476 Spencer Fane Britt & Browne LL 1000 Walnut Ave Ste 1400 Kansas City MO 64106 Legal Services 168304 Grant Thornton LLP 175 W Jackson Blvd Chicago IL 60604 Audit Services 107052 4 0 0 82056 1409711 1915835 1788986 199584 5196588 Tuition and Fees 611310 65990879 65990879 0 0 Room and Board 611310 4990813 4990813 0 0 Early Childhood Center 611600 2159343 2159343 0 0 Conferences and Other Campus Events 611710 398596 398596 0 0 0 0 0 0 73539631 25763 0 0 25763 0 0 0 0 0 0 0 0 191082 0 348788 0 -157706 0 -157706 0 0 -157706 0 500 0 0 0 500 500 0 0 500 11745 82056 63227 -51482 0 -51482 Student Phone/Campus Card 611710 12456 0 0 12456 0 0 0 0 12456 78565750 73539631 0 -170469 0 0 16683084 16683084 25381 25381 0 0 470724 117681 282434 70609 0 0 0 0 28734943 27065541 973642 695760 1776073 1610588 109558 55927 4829565 4436510 285553 107502 1808544 1703946 68915 35683 0 0 0 0 545645 0 545645 0 107264 0 107264 0 62000 62000 0 0 0 0 0 0 0 0 3329184 3329184 0 0 7185813 7185813 0 0 1249578 1076402 68310 104866 1059551 927426 111414 20711 0 0 0 0 2251824 1971025 236784 44015 759394 715146 15846 28402 0 0 0 0 0 0 0 0 1148503 0 1148503 0 0 0 0 0 2926399 2926399 0 0 503004 0 503004 0 Bad Debt and Collections 366613 366613 0 0 Student Orientation 293038 293038 0 0 Memberships 147496 147496 0 0 Other Bond Related Expenses 92329 0 92329 0 865851 728753 12412 124686 77221800 71372026 4561613 1288161 0 0 753794 758470 4238877 1647025 4494079 5031957 4800 2400 0 0 515073 485180 0 0 4125094 4123644 101025901 55563534 46883353 45462367 0 0 0 0 995190 1045696 0 0 1023522 1147920 63033782 59704659 5446719 5719297 0 0 4804531 4558873 16490000 15810000 0 0 0 0 17292355 16905749 6822793 3692408 1115195 674797 51971593 47361124 X -5195404 -4429551 14662243 15162864 1595350 1610222 11062189 12343535 63033782 59704659 X 1343950 0 0 0 0 -62604 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 62000 0 0 0 62000 0 Schedule C, Part II-B, Line 1 Paid amounts to lobbyist to help influence potential legislation and rules/regulations involving higher educational reforms and educational standards under the jurisdiction of the state legislative bodies and agencies. 0 0 X X X 0 22146857 1286661 -769523 560587 849124 0 21254284 18962501 936858 3253145 543037 462610 0 22146857 16744049 1301500 1688691 482550 289189 0 18962501 16699136 1204447 -456331 493831 209372 0 16744049 13518885 693026 3166185 518092 160868 0 16699136 0.44 0.49 0.07 0 1 1 0 1919643 1919643 0 67859782 32639707 35220075 0 6992346 4238527 2753819 0 21222594 17407102 3815492 0 3031536 1278198 1753338 45462367 0 Refundable government student loans 674797 674797 X Schedule D, Part III, Line 1 As stated in the University's audited financial statements, note B, "The University has a collection of art objects, most of which were contributed to the University. The value of these objects is not recorded in the accompanying statement of financial position. The University's Board of Regents has given the authority to sell a significant portion of the collection. While management has been given the authority, it does not currently intend to dispose any significant portion of these art objects. Management will sell or transfer ownership of an art object if it is ever determined that that art object no longer furthers the University's mission Schedule D, Part III, Line 4 The University has a collection of art objects, most of which were contributed to the University without solicitation. Nearly all of these objects are painting or sculptures; many share religious themes, which are consistent with the University's Lutheran Church - Missouri Synod heritage and belief. The objects help the University further its exempt status by providing an overall campus environment conducive of education and learning, acting as educational tools used to demonstrate varying artistic styles and themes, and providing a connection to the University's mission statement by demonstrating the values of "creativity, competence and compassion." Schedule D, Part V, Line 4 Donations given to Concordia University Foundation are for endowments that ultimately assist Concordia University's educational and religious activities. Donors have placed restrictions on the endowment payout in the following ways: 1) financial aid given to Concordia University students, 2) support of Concordia University's Student Services and Academics, and 3) support of Concordia University's maintenance and operations of plant and University general operations. Schedule D, Part X, Line 2 The University and the Foundation are organizations described in Section 501(c)(3) of the Internal Revenue Code (IRC) of 1986, as amended and, as such, are exempt from federal income tax on income earned related to exempt activities under IRC Section 501(a). In addition, the IRC has determined that the University and Foundation are not private foundations within the meaning of Section 509(c) of the IRC. The FASB issued guidance that requires tax effects from uncertain positions to be recognized in the consolidated financial statements only if the position is more likely than not to be sustained if the position were to be challenged by a taxing authority. Management has determined there are no material uncertain tax positions that require recognition in the consolidated financial statements. The tax years ended 2012, 2013, and 2014 are still open to audit for both federal and state purposes. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 Concordia University Chicago publishes its policy of racial non-discrimination in local print media, on its website at CUChicago.edu and via recruitment materials distributed by the Office of Undergraduate Admission. Schedule E, Part I, Line 6 Concordia University serves as a pass-through grantor for several Federal Student Financial Assistance Programs. These Federal Programs include: Federal Perkins Loan Program, Federal Pell Grant Program, Federal Supplemental Education Opportunity Grant Program, Federal Work Study Program, and the Federal Education Loan Program. In addition to Federal Programs, Concordia University also participates in the Illinois Cooperative Work Study Grant Program. 1 East Asia and the Pacific 0 0 Grantmaking Study Abroad Programs 7500 Europe (including Iceland and Greenland) 0 0 Grantmaking Study Abroad Programs 17881 Europe (including Iceland and Greenland) 0 0 Program Services Student recruitment and advising. 110163 0 0 135544 Europe (including Iceland and Greenland) Study Abroad Program 17881 Wire transfer FMV 0 0 0 0 0 0 0 0 Schedule F, Part I, Line 2 The grants used outside of the United States are related to tuition and/or housing accommodations made by Concordia University Chicago on behalf of its students taking part in established study abroad programs. In these cases, Concordia has entered into agreements with various institutions of higher education in order to allow its students to study at a university outside of the United States. These agreements facilitate the payment of tuition and accommodations by requiring the home institution to collect payment from the student and then forward that payment to the university outside of the U.S. Presidential Inauguration 77335 65590 11745 0 0 34786 3954 1222 15297 Chicago Marathon 16466 16466 0 0 0 0 171 1418 6379 0 93801 82056 11745 0 0 34786 4125 2640 21676 63227 -51482 1 Student scholarships and fellowships 1409 16683084 0 Schedule I, Part I, Line 2 Students' eligibility to receive financial assistance from Concordia University Chicago is determined by policy approved by the Board of Regents. On a basis of careful analysis of the financial statements, the Director of Financial Aid determines the amount of aid available from various sources. Next, the amount that the student and his or her family can reasonably be expected to provide is calculated. The difference is called "demonstrated need." Financial assistance is awarded based on the student's demonstrated need for that year. Concordia-Chicago provides scholarships. All recipients are unrelated expect for tuition benefits provided under Concordia-Chicago's tuition grant program to eligible employees, their spouses, and dependents. This tuition grant program is in accordance with IRC section 117(d). Concordia University Chicago also provides student assistance through work-study. X 1 1 X X X 0 0 0 0 0 0 0 0 0 Mr James Miller Sr Vice President 166656 0 0 0 0 0 3848 0 35565 0 206069 0 0 0 Mr Alan Meyer Sr Vice President 157902 0 0 0 0 0 0 0 24943 0 182845 0 0 0 Ms Evelyn Burdick Vice President 154882 0 0 0 0 0 13427 0 10990 0 179299 0 0 0 Mr Tom Hallett Vice President/CFO 148906 0 0 0 0 0 12865 0 25910 0 187681 0 0 0 Dr Marilyn Reineck Vice President 143580 0 0 0 0 0 14204 0 8719 0 166503 0 0 0 Dr Craig Schilling Faculty 143336 0 0 0 0 0 5409 0 3899 0 152644 0 0 0 Schedule J, Part I, Line 1a 10) IRS instructions to Form 990 require that the fair market value of housing provided to employees by their employers be reported on Form 990, Part VII, Section A and Schedule J, Part II. As a condition of employment, the President of the University is required to reside on campus premises. The residence serves both as a personal residence as well as a venue for carrying out University business. The University has determined that the value of the use of the personal residence is not considered taxable income to the President as provided in Internal Revenue Code Section 119. For tax year 2014, the President's use of the residence is conservatively estimated at $42,000. This estimated value is based on a fair rental value of $3,500 per month for similar houses in the area. This value includes maintenance of the property, landscaping, and snow removal. A Illinois Finance Authority 861091967 2013-07-01 17000000 Current refunding issue of 2009 bond issuance 0 0 0 A 1190000 0 17000000 600000 0 0 349201 0 0 0 16050799 0 2009 1 0 1 1 A 0 1 0 0 0.00386 0.00386 1 0 1 A 0 0 0 1 1 0 0 0 0 A 0 Schedule K, Part III, Line 9-07/01/2013 17,000,000 Illinois Finance Authority Written Procedures for Non-Qualified Bonds-The organization did not establish written procedures to ensure that all nonqualified bonds are remediated in accordance with the requirements under sections 1.141-2 and 148 at year end. However, an annual review is performed to ensure that conditions required under section 1.145-2 are met. The requirements under section 148 are not applicable, as 100% of the funds received upon issuance of the outstanding tax exempt bonds were immediately disbursed for qualified purposes, thus providing no assets that could be subject to the provision of section 148. Therefore, no bonds must be remediated in accordance to section 1.141-12. Schedule K, Part IV, Line 2c-07/01/2013 17,000,000 Illinois Finance Authority Bond proceeds were completely expensed on date of issuance, Jul 1, 2013. As bonds are fully expended, rebate calculation is not needed. Schedule K, Part IV, Line 7-07/01/2013 17,000,000 Illinois Finance Authority Written Procedures for Non-Qualified Bonds-The organization did not establish written procedures to ensure that all nonqualified bonds are remediated in accordance with the requirements under sections 1.141-2 and 148 at year end. However, an annual review is performed to ensure that conditions required under section 1.145-2 are met. The requirements under section 148 are not applicable, as 100% of the funds received upon issuance of the outstanding tax exempt bonds were immediately disbursed for qualified purposes, thus providing no assets that could be subject to the provision of section 148. Therefore, no bonds must be remediated in accordance to section 1.141-12. Schedule K, Part V-07/01/2013 17,000,000 Illinois Finance Authority Concordia University has not violated any applicable requirements for tax exempt bonds benefitting the University. The University is working with Bond Counsel to establish written procedures to ensure future timely identification of Federal tax requirements and expects to implement such procedures by June 30, 2016. Evelyn Burdick Sr. VP of Enrollment Personal Loan X 9600 2400 0 1 1 2400 X 12 194535 FMV 0 0 1 1 Schedule M, Part I, Line 32b When Concordia University receives stock gifts, these gifts are directed to a third party which sells the stock at FMV. The cash proceeds from these transactions are forwarded to Concordia's cash account on the same day as the liquidation of the stock gift. Form 990, Part VI, Section A, Line 7a 11) There are 16 voting members of the University's Board of Regents: 1) The President of the Northern Illinois District of Lutheran Church Missouri Synod (LCMS), ex officio, elected by convention of the Northern Illinois District of the LCMS. 2) Four members elected by convention of the Northern Illinois District of the LCMS. 3) Four members elected by the LCMS at the National LCMS Convention. 4) Seven members elected by the Board of Regents. All voting members of the Board of Regents have the same power and authority, regardless of the manner in which they are elected to the Board. Each voting member serves a three year term and may not serve more than nine consecutive years (12 consecutive years for the President of the Northern Illinois District). Terms are staggered. The President of the University and the Chairman of the Concordia University Foundation also serve as ex officio, non-voting members of the Board. Form 990, Part VI, Section B, Line 11b There are several distinct steps that Concordia follows in its IRS Form 990 Review Process. A first draft was prepared by Concordia's Controller, and a top level review was performed by University Management. After this initial review, an updated draft was sent to the University's auditor, Sikich. Sikich performed an in depth review of the first draft, requested support documentation for numerous parts of the 990, and provided items for the Controller to consider, verify, and/or correct. The Controller incorporated these items and developed a second draft of the Form 990. Upon completion of the second draft the Controller forwarded the draft, Sikich's list of items, and the Controller's responses to those items to the University's VP for Finance and CFO, who performed an in depth review. Upon completion of this review, the draft was sent to Sikich, along with the Controller's response to their items and changes, if any, identified after their initial review. Sikich performed its final review and provided the Controller with the near final draft. The Controller forwarded the near final draft to the members of the Board of Regents' Finance Committee. This Committee was authorized, through Board Resolution, to act on behalf of the entire Board to review and approve the IRS Form 990. The Finance Committee was given approximately one week to review the IRS Form 990. During this review, members of the Committee emailed the Controller with questions and comments, if any. The Controller compiled these items and amended the 990, as needed. The Controller then sent the Committee the updated return, along with the compiled list of Committee questions and comments. Shortly after sending the return to the Committee, a Finance Committee meeting was held, during which the IRS Form 990 was finalized. Once finalized, the Committee, through resolution, voted to approve the filing of the IRS Form 990. After this vote, the Controller sent the entire Board of Regents a copy of the final Form 990. The Board of Regents was asked to review the return. After approximately one week, the Controller filed the final, approved, IRS Form 990. While not anticipated, if a question or concern is expressed by a member of the Board of Regents, at an upcoming Board meeting resulted in a need to correct the already filed return, the Controller would immediately file an amended return. Form 990, Part VI, Section B, Line 12c Concordia University Chicago is fully committed to conducting its responsibilities in a manner reflecting the highest degree of integrity and honesty. The success of Concordia in conducting its affairs is the sum of effort of each Board, Committee, and Cabinet member in conducting his or her responsibilities with good judgment and in an ethical manner. Therefore, without exception, each member is to comply with Concordia's Conflict of Interest Policy. Annually thereafter, each member is asked to read, acknowledge understanding, and agree to comply with, Concordia's Conflict of Interest Policy. As a part of this process, each member is asked to disclose any personal potential conflict of interest. All such disclosures are reported to the Board and Concordia's President, who determines whether a potential conflict of interest exists. In the event that it is determined that a conflict does exist, the Member is prohibited in participating in all deliberations and decisions associated with all activities involving the related organization. In the event that it is discovered that any inappropriate activity did occur related to an actual conflict of interest, the matter would be reported to the Board of Regents and appropriate action would be taken, up to and including termination of employment (for employees) or removal from the Board in accordance with the bylaws of The Lutheran Church-Missouri Synod (for Board members). Form 990, Part VI, Section B, Line 15 In addition to approving the Concordia University's annual contract, there are several other individuals who have their salaries renewed and approved by the Finance Committee of the Board of Regents. These individuals include the President's Cabinet and all individuals who have the ability to affect employees' compensation. This includes all members of the Human Resources and Payroll departments, as well as the University's Controller, Assistant Controller and Director of Budget Services. Annually, the Director of Human Resources and the Assistant Controller provide the Board with these individuals' compensation, as well as comparative data from similar universities. Once the data is reviewed, annual compensation increases for these individuals are either approved or rejected. The approval or rejection is documented through a formal board of resolution of the Concordia University Board of Regents. Form 990, Part VI, Section C, Line 19 Concordia University makes its Articles of Incorporation, Bylaws, Conflict of Interest Policy, Whistle Blower Policy, IRS Form 990, and audited financial statements available to the general public on its website. (http://www.cuchicago.edu/about-concordia/our-mission/financial-information/) Form 990, Part XI, Line 9 1) Equity transfer to Concordia University Foundation -$61,524, 2) Gain on interest rate swap $187,849, 3) Cost to be incurred on future disposal of assets -$220,000, 4) Change in value of funds held by third party -$5,090, 5) Change in value of pledge receivables $13,891, 5) Change in value of life insurance policies $22,270 Concordia University Foundation 7400 Augusta Street River Forest IL 60305 237055802 Formed to promote Concordia University through solicitation of funds and management of endowment. IL 501(c)(3) Line 11- Type I Concordia University 1 Lutheran Church Missouri Synod 1333 S Kirkwood Road Saint Louis MO 63122 460658118 Spreading the Gospel MO 501(c)(3) Line 1 N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 Concordia University Foundation c 1409711 Cost Concordia University Foundation r 61524 Cost Concordia University has a fiscal year end of June 30. Both automatic and additional extensions were filed prior to the defined deadlines for a June 30, 2015 yearend (Nov 15, 2015 and Feb 15, 2016). Unfortunately, during the extension process, the June 30 yearend was switched to a calendar yearend. So, IRS may consider extensions late, but Concordia University is asking that the extensions and this return be considered on time.