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Office of the Vice Chancellor
and Chief Financial Officer
150 E. South College St.
Yellow Springs, OH 45387
TEL: 937-769-1370
FAX: 937-769-1377
November 22, 2007
To:
From:
Members of the Board of Trustees
Thomas A. Faecke, Vice Chancellor & CFO
Subject: Financial Audit for FY07
Attached is the financial audit dated November 8, 2007, from the accounting firm
of Hausser & Taylor, LLC. The draft audit was presented at the October Board of
Trustees meeting and the final audit is submitted with only two significant
changes. They were:
(A) Page 13, Note 5. Violation of Debt Covenant
After the October BOT meeting we were notified by National City Bank that we
were in violation of an Ohio debt covenant. We have been granted a waiver of
the covenant violation and are in current conversations with National City Bank in
negotiating a new formula that will have the Ohio covenant calculations mirror the
bond calculations in effect for Washington and New Hampshire. We feel
confident from preliminary conversations that we will be successful in this effort.
(B) Page 21, Note 16. November 2 decision
Because the audit was not issued at the time of the decision to lift the suspension
of operations, and the audit opinion contained the date we received the waiver,
the auditors were required to disclose the Board’s November 2 decision
regarding the suspension.
If you have any specific questions regarding the FY07 audit please do not
hesitate to contact me or Virginia Dowse.
Cc: Toni Murdock
Virginia Dowse
David Weaver
.w •••••••••__ ••••_._. __ ~ _. __ _ • ” • “‘ ‘ _ ••••_._ .._ _ __ ._ __ .._. .
ANTIOCH UNIVERSITY
FINANCIAL STATEMENTS WITH
OMB CIRCULAR A-133 REPORT
JUNE 30; 2007 AND 2006
ANTIOCH UNIVERSITY
TABLE OF CONTENTS
INDEPENDENT AUDITORS’ REPORT
FINANCIAL STATEMENTS
Statements of Financial Position
Statement of Activities – 2007
Statement ofActivities – 2006
Statementsof CashFlows
Notes to the Financial Statements
OMB CIRCULAR A..133 AUDIT REQumEMENTS
1
2
3
4
5-6
7-21
Schedule of Expenditures of Federal Awards 22
Notes to the Schedule of Expenditures of Federal Awards 23
Report on InternalControl Over Financial Reporting and on Compliance
and OtherMattersBased on an Auditof FinancialStatementsPerfoxm.ed
. in Accordance With Govemmen~ Auditing Standards 24-25
Report on Compliance With Requirements Applicable to Each Major
Program and InternalControl Over Compliance in Accordance
With ONIB Circular A-133 26-27
Schedule of Findings and Questioned Costs 28-29
1Hr+~HausseRa~OR~
Business ad’Oiso’rsand certified pu blic accountants
19] West Nationwide Blvd, Suite 400· Columbus, Ohio 43215-2591 614/358-0473 • FAX: 614/224-4197 • www.hausser.com
Board of Trustees
AntiochUniversity
Yellow Springs,Ohio
Independent Auditors’ Report
We have audited the accompanying statements of financial position of Antioch University (”the
University”)as of June 30, 2007 and 2006, and the related statements of activities and cash flows for the
years then ended. These fmanciaIstatementsare the responsibilityof the University’s management. Our
responsibilityis to express an opinionon these financialstatementsbased on our audits.
We conductedour audits in accordancewith auditingstandardsgenerally acceptedin the United States of
America and the standards applicableto financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable’assurance about whether the financial statements are :free of
material misstatement. An audit includes examining, Qn a test basis, evidence supporting the amounts
and disclosuresin the financial statements. An audit also includes assessing the accounting principl~
used and significant estin1ates made by management, as well as evaluating the overall financial
statementspresentation. We believethat our audits provid~ a reasonable basisfor our opinion.
In our opinion, the .financial statementsreferred to above present fairly, in all material respects, the
financialpositionAntioch Universityas of June 30, 2007 and 2006, and the ohangesin net assets and its .
cash flows for the years then ended in confcmnitywith accountingprinciples generally accepted in the
United Statesof America.
In accordancewith GovernmentAuditing·Standards, we have also issued our report dated November 8,
2007 on our considerationof the University’s internalcontrol over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. The purpose of that report is to descnoe the scope of our testing on internal control over
financialreportingor on compliance. That report is an integralpart of an auditperformed in accordance
with Government~uditing Standardsand shouldbe consideredin assessingthe results of our audit
Our audit was performed for the purpose of forming an opinion on the basic financial statements of the
Universitytakenas a whole. The accompanyingscheduleof expendituresof federal awards for the year
ended June 30, 2007 is presented for purpose of additional analysis as required >y the U.S. Office of
Management and Budget· Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations,and is not a required part of the basic financial statements. Such information bas been
subjected to the auditing procedures applied to the audit of the basic financial statements and, in our
opiriion,is fairlypresentedin all materialrespects in relation to the basic financial statements taken as a
whole.
CQlumbus,Ohio
November8, 2007
Cleveland Elyria. – 1 – Akron Canton Columbus
ANTIOCH UNIVERSITY
STATEMENTS OF FINANCIAL POSmON
June 30, 2007 and 2006
2007 2006
ASSETS
Cash and cash equivalents $ 8,116,355 .$ 7,003,812
Accountsreceivable,less allowancefor doubtful
accounts ($177,32~ in 2007 and $318,288 in 2006) 1,882,503 979,623
Grantsreceivable 208,027 117,247
Prepaid expenses 2,141,582 2,094,770
Loansto students, less allowance for uncollectible
loans($2,181,511in 2007 and $2,181,491 in 2006) 5,328,202 4,869,591-
Contributionsreceivable,less allowancefor uncollectible
items($1,969,204in 2007 and $929,280 in 2006) 4,820,132 8,388,754
Beneficialinterest in split interest agreements 645,040 499,030
Investments. 42,777,792 50,407,240
Land,buildings,and equipment-net 36,434,395 29,282,639
Total assets $ 102,354,028 $: 103,642,706
LIABILITIES AND NET ASSETS
LIABILITIES
Line of credit $ $ 600,000
Accountspayable 2,566,272 1,468,552
Accrued benefit liabilities 4,464,287 3,431,133
Otheraccrued liabilities 5,361,535 3,410,429
Deferredtevenue 7,822,022 6,949,876
N9tes and bondspayable 24,102,511 24,906,796
Annuitiespayable 1,742,284 1,801,237
Depositsheldfor others 941,628 815,377
Advancesfrom governmentfor student loans 4,914,634 4,855,412
Total liabilities 51,915,173 48,238,812
NET ASSETS
Unrestricted 15,788,095 12,946,058
Temporarilyrestricted 13,893,404 22,048,132
Permanentlyrestricted 20,757,356 20,409,704
Totalnetassets 50,438,855 55,403,894
Totalliabilitiesand net assets $ .102,354,028 $ 103,642,706
The accompanyingnotesare an integralpartofthese fmancial statements.
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ANTIOCHUNIVERSITY
STATEMENTSOF ACTIVITIES
YearEnded June 30, 2007
Temporarily Permanently
Unrestricted Restricted Restricted Total
REVENUES,GAINSAND OTHERSUPPORT
Tuitionand fees $ 57,940,866 $ $ $ 57,940,866
Less studentaid (4,469,061) (4,469,061)
53,471,805 53,471,805
Contributions 2,118,487 924,558 424,634 3,467,679
Contractsand otherexchangetransactions 6,890,835 130,627 7,021,462
Investmentincomeon’lifeincomeand
. annuityagreements 102,997 49,1~2 152,159
Changesin valueofsplit-interestagreements , 55,378 55,378
Investmentincomeon endowments 15,017 662,593 677,610
Otherinvestmentincome 1,186,869 1,186,869
Netrealizedgainson endowments 2,541,551 2,541,551
Netrealizedgains on otherinvestments 789,176 92,259 43,536 924,971
Salesandserviceof auxiliaryenterprises 2,905,517 2,905,517
Otherincome 1,559,488 1,559,488
Totalrevenuesandgains 71,478,745 1,913,034 572,710 73,964,489
Netassetsreleasedfromrestrictions 8,841,988 (8,841,988)
Donorredesignationofnetassets (17,630) 17,630
Totalrevenues,gains,andother~upport 80,303,103 (6,928,954) 590,340 73,964,489
EXPENSESANDLOSSES
Educationaland general:
Instruction 31,513,269 31,513,269
Research 30,919 30,919
Publicservice 4,572,830 4,572,830
Academicsupport 7,027,798 7,027,798
Studentservices 8,904,936 8,904,936
Institutionalsupport 18,163,810 18,163,810
Scholarshipsand fellowships 2,684,655 2,684,655
Totaleducationalandgeneralexpenses 72,898,217 72,898,217
Auxiliaryenterprises 3,880,906 3,880,906
Totalexpenses 76,779,123 76,779,123
Baddebtexpense 1,249,238 217,763 1,467,001
Actuarialgain on annuityobligations (103,217) (103,217)
Paymentsto lifeincomebeneficiaries 209,033 49,867 258,900
Totalexpensesand losses 76,779,123 1,355,054 267,630 78,401,807
REVENUES,GAINSAND OTHERSUPPORT
LESS EXPENSESAND LOSSES 3,523,980 (8,284,008) 322,710 (4,437,318)
Net unrealizedgainson investments 1,129,171 129,280 24,942 1,283,393
Increasein net assetsbeforecumulativeeffect
ofchangein accountingprinciple 4,653,151 (8,154,728) 347,652 (3,153,925)
Cumulativeeffectofchangein accountingprinciple (1,811,114) (1,811,114)
Increase(decrease)in netassets 2,842,037 (8,154,728) 347,652 (4,965,039)
Netassetsat beginningofyear 12,946,058 22,048,132 20,409,704 55,403,894
Netassetsat end ofyear $ 15,788,095 $ 13,893,404 $ 20,757,356 $ 50,438,855
The accompanyingnotesare an integralpartof thesefinancialstatements.
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