Detailed Financials
Consolidated Statements of Financial Position at July 31, 2005 and 2004.
(All figures are in thousands.)
| Assets | 2005 | 2004 |
|---|
| Cash and cash equivalents | $ 19,578 | $ 8,193 |
| Student receivables, less allowance for doubtful accounts of $966 and $1,104, respectively | 3,646 | 4,350 |
| Other accounts receivable | 3,112 | 2,940 |
| Student loans, less allowance for loan losses of $2,030 and $2,132 respectively | 25,870 | 29,549 |
| Contributions receivable, net | 15,588 | 18,243 |
| Prepaid expenses, inventories, and other assets | 7,382 | 6,834 |
| Investments | 657,792 | 577,412 |
| Assets held as trustee or agent | 91,721 | 87,113 |
| Property, facilities and equipment, net | 293,773 | 314,565 |
| Total assets | $ 1,118,462 | $ 1,049,199 |
| Liabilities and Net Assets |
|---|
| Liabilities: |
| Accounts payable and accrued liabilities | $ 22,094 | $ 26,502 |
| Accrued salaries and wages | 3,689 | 3,680 |
| Student deposits, advance payments, and deferred revenue | 7,282 | 6,563 |
| U.S. government-funded student loans | 14,893 | 14,600 |
| Trust and agency obligations | 63,602 | 61,682 |
| Long term obligations | 202,724 | 205,788 |
| Total liabilities | 314,284 | 318,815 |
| Net assets: |
| Unrestricted | 598,081 | 542,226 |
| Temporarily restricted | 64,268 | 60,597 |
| Permanently restricted | 141,829 | 127,561 |
| Total net assets | 804,178 | 730,384 |
| Total liabilities and net assets | $ 1,118,462 | $ 1,049,199 |
Consolidated Statements of Activities for the years ended July 31, 2005 and 2004
| REVENUES |
|---|
| | Unrestricted | Temporarily Restricted | Permanently Restricted | 2005 Total | 2004 Total |
| Student tuition and fees | $198,744 | $ – | $ – | $198,744 | $193,895 |
| Less student aid | (50,169) | – | – | (50,169) | (47,171) |
| Net student tuition and fees | 148,575 | – | – | 148,575 | 146,724 |
| Room and board | 22,970 | – | – | 22,970 | 22,135 |
| Private gifts and grants | 8,645 | 2,095 | 2,271 | 13,011 | 14,922 |
| Endowment support | 22,880 | 129 | 255 | 23,264 | 21,006 |
| Government grants | 2,879 | – | – | 2,879 | 2,940 |
| Sales and services | 8,722 | – | – | 8,722 | 7,521 |
| Other revenue | 5,954 | 2,636 | 19 | 8,609 | 5,534 |
| Net assets released from restriction | 8,822 | (8,822) | – | – | – |
| Total revenues | 229,447 | (3,962) | 2,545 | 228,030 | 220,782 |
| EXPENSES |
|---|
| Instruction and research | 80,661 | – | – | 80,661 | 78,223 |
| Academic support | 27,772 | – | – | 27,772 | 29,725 |
| Student services | 32,947 | – | – | 32,947 | 31,282 |
| Public service | 9,806 | – | – | 9,806 | 9,332 |
| Auxiliary enterprises | 17,558 | – | – | 17,558 | 16,956 |
| Management and general | 39,116 | – | – | 39,116 | 40,572 |
| Membership development | 1,519 | – | – | 1,519 | 1,400 |
| Fundraising | 8,825 | – | – | 8,825 | 8,954 |
| Total expenses | 218,204 | – | – | 218,204 | 216,444 |
| |
| Change in net assets before non-operating revenues and expenses | 11,243 | (3,962) | 2,545 | 9,826 | 4,338 |
| NON-OPERATING REVENUES AND EXPENSES |
|---|
| Adjustment of actuarial liability | – | 3,921 | (2) | 3,919 | (454) |
| Investment income | 6,821 | 144 | 152 | 7,117 | 6,550 |
| Net realized and unrealized gains from investments | 56,273 | 114 | 10,826 | 67,213 | 42,914 |
| Appropriation of prior years endowment gains | (15,963) | – | – | (15,963) | (14,591) |
| Other | (2,519) | 3,454 | 747 | 1,682 | 1,102 |
| Total non-operating revenues and expenses | 44,612 | 7,633 | 11,723 | 63,968 | 35,521 |
| |
| Change in net assets | 55,855 | 3,671 | 14,268 | 73,794 | 39,859 |
| |
| Net assets at beginning of year | 542,226 | 60,597 | 127,561 | 730,384 | 690,525 |
| Net assets at end of year | $598,081 | $64,268 | $141,829 | $804,178 | $730,384 |
This financial information is summarized from the July 31, 2005, Consolidated Financial Statements of Pepperdine University, which have been audited by our independent auditors. The statements were prepared in accordance with generally accepted accounting principles applicable to colleges and universities. A complete copy of the audited financial statements is available free of charge upon request from the office of the Controller.
In the spirit of the recent Sarbanes-Oxley legislation (not yet required of non-profit corporations) and consistent with our ongoing efforts to improve corporate governance, the Board of Regents has established an Audit Committee and approved its Charter. Five independent members of the Board of Regents comprise the Audit Committee, which meets at least quarterly and is responsible for the selection and retention of the independent auditors, as well as the determination of their independence. The Audit Committee also reviews the University’s systems of internal control and oversees the Auditing Services function. Finally, the Audit Committee has established a system to receive and investigate confidential and anonymous communications concerning the processing and presentation of financial information.
