Financials

Consolidated Statements of Financial Positions at July 31, 2008 and 2007 (in thousands)

  2008 2007
ASSETS    
     
Cash and cash equivalents $39,193 $11,391
Student receivables, less allowance for doubtful accounts of $1,012 and $1,089, respectively 4,070 2,967
Other accounts receivable 5,730 4,716
Student loans, less allowance for loan losses of $2,020 and $1,932, respectively 28,005 29,258
Contributions receivable, net 24,762 17,906
Prepaid expenses, inventories and other assets 6,633 6,126
Investments 813,148 917,777
Assets held as trustee or agent 112,719 120,414
Property, facilities and equipment, net 315,277 292,288
Total assets $1,349,537 $1,402,843
     
LIABILITIES AND NET ASSETS    
     
Liabilities:    
Accounts payable and accrued liabilities $22,737 $19,558
Accrued salaries and wages 2,985 2,676
Student deposits, advance payments and deferred revenue 10,136 10,180
U.S. government funded student loans 13,838 13,638
Trust and agency obligations 69,239 75,626
Long term obligations 209,000 209,351
Total liabilities 327,935 331,029
     
Net assets:    
Unrestricted 664,792 715,391
Temporarily restricted 75,442 71,752
Permanently restricted 281,368 284,671
Total net assets 1,021,602 1,071,814
     
Total liabilities and net assets $1,349,537 $1,402,843

 

  Unrestricted Temporarily Restricted Permanently Restricted Total Total
REVENUES          
Student tuition and fees $226,616 $ - $ - $226,616 $214,310
Less student aid (60,968) - - (60,968) (56,953)
Net student tuition and fees 165,648 - - 165,648 157,357
           
Room and board 27,250 - - 27,250 25,550
Private gifts and grants 11,082 8,644 5,009 24,735 33,793
Endowment support 25,901 156 406 26,463 26,023
Government grants 2,693 - - 2,693 2,458
Sales and services 8,469 - - 8,469 9,496
Other revenue 6,035 (8) 33 6,060 8,040
Donor redesignation of restriction - (110) 110 - -
Net assets released from restriction 999 (999) - - -
Total revenues 248,077 7,793 5,448 261,318 262,717
           
EXPENSES          
Instruction and research 78,726 - - 78,726 79,897
Academic support 36,049 - - 36,049 29,862
Student services 43,139 - - 43,139 40,960
Public service 12,443 - - 12,443 11,829
Auxiliary enterprises 19,811 - - 19,811 18,344
Management and general 58,946 -   58,946 52,311
Membership development 1,635 - - 1,635 1,480
Fundraising 6,424 - - 6,424 6,858
Total expenses 257,173 - - 257,173 241,541
           
Change in net assets before nonoperating revenues and expenses (9,096) 7,793 5,448 4,145 21,176
           
NONOPERATING REVENUES AND EXPENSES          
Adjustment of actuarial liability - (1,144) (696) (1,840) 6,145
Investment income (loss)          
Dividends 9,274 - 7 9,281 9,293
Interest 6,428 10 130 6,548 7,509
Other 5,139 - (27) 5,112 1,888
Net realized and unrealized (losses) gains from investments (37,661) (3,060) (9,116) (49,837) 183,175
Appropriations from endowment (19,776) - - (19,776) (14,346)
Other (4,907) 91 951 (3,865) 1,345
Total non operating revenues and expenses (41,503) (4,103) (8,751) (54,357) 195,009
           
Change in net assets (50,599) 3,690 (3,303) (50,212) 216,185
Net assets at beginning of year 715,391 71,752 284,671 1,071,814 855,629
Net assets at end of year $664,792 $75,442 $281,368 $1,021,602 $1,071,814

This financial information is summarized from the July 31, 2008, 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 nonprofit 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.