Vanguard University Annual Report 2011-2012

VANGUARD UNIVERSITY ANNUAL REPORT / 2011 – 2012

MESSAGE FROM THE PRESIDENT:

AT VANGUARD YOUR STORY MATTERS. WHERE HAVE YOU BEEN? WHAT ARE THE EXPERIENCES GOD HAS USED TO SHAPE AND PREPARE YOU? WE CARE ABOUT YOUR STORY, ABOUT WHO GOD IS MAKING YOU TO BE. AND WE WANT TO EQUIP YOU— TO GIVE YOU THE SKILLS, KNOWLEDGE, AND EXPERIENCE YOU NEED—FOR THE JOURNEY GOD HAS SPECIFICALLY FOR YOU.

The growth and accomplishments at Vanguard University this past year are truly astounding and evidence of God’s continued providence. The momentous growth we’ve experienced in 2011-2012 is due to the devotion our students, faculty and staff for Christ-centered leadership and service. The result is an innovative, Christian liberal arts institution of higher education. I am delighted to share some of our milestones with you.

Vanguard recruited its largest freshman class in the history of the University in September 2012.

With a significant increase in applicants also came an improvement in the academic profile of the incoming freshman class and greater cultural diversity. Vanguard has continued to foster a wide spectrum of success stories: recognition of Vanguard faculty leader, Karen Lee, in a higher education publication as one of ten “Emerging Scholars” in the nation; a grant from the Employee Community Fund of Boeing to assist women veterans; a 2012 NAIA Athletic Director of the Year Award to Bob Wilson; two California domestic violence bills written and passed because of Olivia Klaus’ ’99 mission to advocate for the victims of domestic violence. And these are just a few.

As you learn more about Vanguard in this annual report, I hope you will also be astounded by the evidence of God’s gracious hand on Vanguard – and the sense of growing vision for what God is doing through this University.

DR. CAROL A. TAYLOR PRESIDENT

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FAITH, WORKS AND LEARNING... CHRIST-CENTERED HIGHER EDUCATION FOR THE 21ST CENTURY

:beyond academics THE DEPARTMENT OF ANTHROPOLOGY AND SOCIOLOGY AT VANGUARD USES INNOVATIVE, HANDS-ON APPROACHES TO RESEARCHING CRITICAL SOCIAL ISSUES. CHRIST-CENTERED SOLUTIONS ARE APPLIED TO CREATE POSITIVE, TRANSFORMATIVE CHANGE IN AN INCREASINGLY DIVERSE WORLD.

The Department of Anthropology and Sociology at Vanguard uses innovative, hands-on approaches to researching critical social issues. Christ-centered solutions are applied to create positive, transformative change in an increasingly diverse world.

PRACTICING WHAT IS PREACHED: Vanguard alum and chair of the Department of

Anthropology and Sociology at Vanguard, Dr. James Huff, is a glowing example of how the right blend of scholarship, faith and dedication can lead to lasting sociocultural and cultural change. Since 2005 he has worked with Enlace, a faithbased community development organization in El Salvador. Founded by Vanguard alumni Ron and David Bueno, Enlace equips church leaders with the ability to develop sustainable solutions to poverty.

This summer, Dr. Huff will take a small group of students to El Salvador to learn about rural poverty first-hand and to work alongside Salvadorean church leaders who are dedicated to alleviating spiritual and physical poverty in their communities.

For Dr. Huff, Vanguard created a network of relationships and opened doors that he hopes his students will also experience. “I tell my students that what is so great is that I’ve had this journey vocationally which has been deeply satisfying, and I’ve done it with people who I graduated with. It’s not just about career; it’s about life.”

THE LEARNING RELATIONSHIPS THAT ARE FORMED DURING THIS SHARED QUEST WILL LAST FOR A LIFETIME. THIS IS THE VANGUARD LEARNING EXPERIENCE.

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DEPARTMENT OF MUSIC

:beyond the expected CARNEGIE HALL, LINCOLN CENTER

TALENT IS AS TALENT DOES: Vanguard student Samuel Hines had a

FOR THE PERFORMING ARTS IN NEW

transformational experience in high school when he met classical guitarist

YORK CITY, AND SEGERSTROM CENTER

Michael Nigro, an adjunct professor of music at Vanguard. Hines followed Nigro

FOR THE PERFORMING ARTS ARE JUST

to Vanguard to study music, a decision that has resulted in numerous accolades

A FEW IMPRESSIVE VENUES IN WHICH

for his superior technical skill, beautiful tone, and quality musicianship.

VANGUARD STUDENTS HAVE PERFORMED. THE PERFORMANCE GROUPS, RANGING

In 2012, Hines was selected as one of the 15 finalists to compete against

FROM JAZZ AND GUITAR ENSEMBLES TO

international guitarists for the prestigious Parkening International Guitar

TRADITIONAL CONCERT CHOIRS, ARE LED

BY A CADRE OF SEASONED MUSICIANS AND TALENTED MUSIC PROFESSORS IN THE VANGUARD MUSIC DEPARTMENT.

Award. “I can’t think of any of our music performance students more deserving in being a part of this international competition than Samuel Hines.

He is very hard working and disciplined,” says Dr. James Melton, chair of the Department of Music at Vanguard.

“God has blessed me a lot throughout my time,” says Hines of his many experiences at Vanguard, which include playing with the touring Guitar Ensemble under the leadership of Dr. Greg Glancey, associate professor of music at Vanguard. “I’ve grown both as a musician and a person.”

. . . HIS SP IRIT IS IN US, G UID ING , COMFORTING , AND EQUIP P IN G U S F OR THE NEX T CHAP TER OF OUR STORY . . .

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NEXT GENERATION OF CHRISTIAN LEADERS

:beyond leadership A LIBERAL ARTS EDUCATION AT VANGUARD MEANS MORE THAN BECOMING A SUBJECT MATTER EXPERT IN THEORY; IT MEANS BECOMING A PERSON OF WISDOM AND INTEGRITY WHO CAN APPLY WHAT IS LEARNED IN A WAY THAT MODELS EXCELLENCE. AT VANGUARD, STUDENTS ARE PROVIDED REAL-LIFE OPPORTUNITIES TO PRACTICE LEADERSHIP SKILLS BEFORE THEY GRADUATE, MAKING THEM EVEN MORE EFFECTIVE LEADERS IN ANY CAREER PATH THEY CHOOSE TO PURSUE. POLITICAL SCIENCE IN ACTION: Alum David Vazquez ’12 had his sights set on

politics from the time he was in fourth grade. As a student at Vanguard, the former student body president says he developed his leadership skills by taking advantage of opportunities to lead, such as making presentations to the Vanguard Board of Trustees Student Life Committee and representing Vanguard at district and national meetings of the Assemblies of God. In flipping through Vanguard yearbooks and archives from decades past, Vazquez was inspired by all that Vanguard students had done way back then to shape Vanguard today. “Students help create the identity of Vanguard. Things that are instrumental to our community came from students.”

Delivering the commencement speech in May 2012, Vazquez said, “Vanguard has been the place where we developed our passions, experiences, opportunities, and found our calling.” Recently selected as a 2012-2013 California State Senate Fellow, Vazquez continues to exercise the leadership skills he developed at Vanguard while at work in the office of Senator Mark Wyland in Sacramento.

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TURNING DREAMS INTO REALITY...

:beyond integration AT VANGUARD, PROFESSORS REGULARLY PLANT SEEDS OF PROMISE IN STUDENTS; WHEN THESE SEEDS GERMINATE AND HOW FAST THEY GROW IS IMPOSSIBLE TO PREDICT, BUT SEEING THEM IN FULL BLOOM IS WORTH EVERY BIT OF CULTIVATION.

It was Elizabeth Leonard, Vanguard Sociology professor-emerita, who planted the seed in Vanguard alum Olivia Klaus when she took Olivia to meet with women serving prison sentences related to domestic violence. “I wanted to quit several times,” Olivia said recently, as she addressed a room of Vanguard students who listened intently to the award-winning filmmaker’s plight to understand a close friend’s domestic violence that had begun a decade earlier.

Despite encountering many obstacles along the way, Klaus did not quit. Her perseverance finally paid off in 2012 when California Assemblywoman Fiona Ma saw her documentary, Sin by Silence, on the Investigation Discovery Channel and took action by drafting two domestic violence bills recently signed into California law by Governor Jerry Brown. In partnership with the Global Center for Women and Justice, Klaus’s film is also a recipient of the 2012 Mary Byron Project Award.

“This film would have never happened without so many people, including the community here at Vanguard,” Klaus told students. She also passed along her grandmother’s sage advice: “Have courage, follow your dreams, create change, and do what is right.”

I PR E S S O N TO WA R D THE G OAL F OR THE P RIZ E OF THE UP WARD CALL OF G OD IN CH R I S T J E S U S . —PH I LIP P IANS 3:14

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STUDY ABROAD PROGRAM

:beyond the classroom “IT SHOULD BE A PRIORITY FOR EVERY STUDENT TO SPEND SOME TIME – AT LEAST A MONTH, A SUMMER, OR A SEMESTER – ABROAD. START EARLY AND THEN YOU HAVE A WHOLE LIFETIME TO APPRECIATE THESE DIFFERENT PLACES AND CULTURES YOU ENCOUNTER.” –ED WESTBROOK, PROFESSOR OF BUSINESS LAW AND CO-LEADER OF THE VU ITALIA 2012 STUDY ABROAD PROGRAM

Studies show that study abroad programs, such as VU Italia 2012, greatly enhance academic, intercultural, vocational, and personal student development. Add in the unique professor-mentor bond that students cultivate with their professors at Vanguard, and the lifelong impact of such programs grows exponentially.

In May 2012, VU Italia study abroad program took students on a one-month academic trip to Italy in exchange for 9-units of academic credit and a lifetime of experience to draw upon. “You connect with students in a different way,” says Dr. Ed Rybarczyk, professor of systematic theology and co-leader of VU Italia 2012. “You experience life together for a month…you get to know the students very well and appreciate who they are, what they’re interested in, and what they’re good at.”

Amid busy schedules that included study, worship, sight-seeing, and family-style dinners, students learned to open their minds and hearts to new perspectives and sharpen their critical thinking skills. Anthropology student Rebecca Datillo says of the hands-on learning her professors provided: “My worldview was broadened, and it allowed me to have a more global perspective.” . . . O U R U NDE R S TA ND ING OF THE WORLD — INFORMS AND D EEP ENS OUR FAITH, BR I NGI NG CO L O R A ND LIFE IN SURP RISING WAYS . . .

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LETTER FROM VICE PRESIDENT FOR BUSINESS AND FINANCE:

Vanguard University continues to improve its financial position due to diligent budget and fiscal policies. We are seeing a continued improvement to cash position and debt reduction, with increased revenues targeted to achieving University goals. We are transitioning to long range budget planning with a focus on sustainable budget practices. Our priorities include investing in people, transforming the campus, and outstanding operational stewardship, while funding the mission of moving the University into the future prepared to equip each student for Spirit-empowered life of Christ-centered leadership and service.

MRS. LETTIE COWIE VICE PRESIDENT FOR BUSINESS AND FINANCE

F OR A CO PY O F TH E R E PO RT O F I NDE PEND ENT AUD ITORS AND CONSOLID ATED FINANCIAL STATEMENTS P L EAS E CO NTA CT L E TTI E CO W I E , V I CE P RESID ENT F OR BUSINESS AND FINANCE AT 714.966.5484.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

YEAR ENDED JUNE 30,

2012

2011

ASSE T S: Cash and cash equivalents

$ 8,585,402

$ 6,759,561

Student accounts receivable, net of allowance of $750,692 and $296,403 as of June 30, 2012 and 2011, respectively

622,934

1,662,912

Estates receivable

1,278,045

394,380

Grant receivable Prepaid expenses

—

520,387

8,008 452,618

Promises-to-give 78,212 78,212 Notes receivable, net of allowance

—

—

Investments 3,715,934 4,029,681 Student loans receivable, net of allowance of $300,000 as of June 30, 2012 and 2011

2,058,745

2,074,331

Other assets

1,445,599

2,085,592

Land, buildings, and equipment, net of depreciation 25,833,811 25,343,072 TOTAL ASSETS

$ 44,139,069

$ 42,888,367

$ 1,018,411

$

L IABIL IT IE S: Accounts payable

875,491

Accrued expenses and other liabilities

2,033,398

1,843,708

Deposits and deferred revenue

1,316,762

371,732

Student refundable credits

1,532,417

1,726,315

Tuition remission liability

334,237

373,082

Capital lease obligations

— 348,596

Notes payable 25,980,401 27,879,085 Perkins loan liability

1,980,523

1,980,358

Trust and remainder life obligations

501,565

595,103

TOTAL LIABILITIES

$ 34,697,714

$ 35,993,470

N E T ASSE T S: Unrestricted net assets (deficit)

2,431,914

(630,841)

Temporarily restricted

4,256,232

3,905,768

Permanently restricted

2,753,209

3,619,970

Total net assets

9,441,355 6,894,897

TOTAL LIABILITIES AND NET ASSETS

$ 44,139,069

$ 42,888,367

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CONSOLIDATED STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,

2012

S UPPORT AND RE V E N U E :

TEMPO RA RILY RES TRICTED

UNRES TRICTED

Student tuition and fees

$ 45,503,171

Less: institutional scholarships

$

—

PERMA NENTLY RES TRICTED

$

—

TO TA L

$ 45,503,171

(17,091,148)

—

— (17,091,148)

Auxiliary services 8,367,974

—

— 8,367,974

NET REVENUE 36,779,997

—

— 36,779,997

Contributions and private grants

1,479,170

1,248,706

133,239

2,861,115

Other income 790,838

4,388

— 795,226

Federal grants 115,111

—

— 115,111

Investment income 17,431

—

— 17,431

Net assets released from restrictions: Satisfaction of donor restrictions

773,937

(773,937)

—

—

TOTAL SUPPORT AND REVENUE 39,956,484 479,157 133,239 40,568,880

OPERATING EX P E N SE S: Program services:

Instructional

$ 12,180,103 $

— $

— $ 12,180,103

Academic support 1,003,430

—

— 1,003,430

Student services 6,068,406

—

— 6,068,406

Auxiliary services 4,281,811

—

— 4,281,811

Institutional support 13,806,396

—

— 13,806,396

Fundraising 514,499

—

— 514,499

37,854,645

—

— 37,854,645

Support activities:

TOTAL OPERATING EXPENSES

Change in net assets from operations

2,101,839

479,157

133,239

2,714,235

Other changes in non—operating activities:

Endowment investment (loss)

— (76,547)

Transfer and restoration of underwater

endowment balances (8,426)

8,426

— (76,547) —

—

Loss on sale of assets

(30,658)

—

—

(30,658)

Net change in split—interest agreements

—

(60,572)

—

(60,572)

(39,084) (128,693)

Change in net assets before reclassification

2,062,755

Reclassification of endowment corpus

1,000,000

Change in net assets

3,062,755

350,464

(866,761)

2,546,458

Net assets, beginning of year

(630,841)

3,905,768

3,619,970

6,894,897

NET ASSETS, END OF YEAR

$ 2,431,914

350,464

— (167,777)

133,239

2,546,458

— (1,000,000)

—

$ 4,256,232

$ 2,753,209

$ 9,441,355

CONSOLIDATED STATEMENT OF ACTIVITES

YEAR ENDED JUNE 30,

2011

SU P P O RT AN D RE V E N U E :

Student tuition and fees

TEMPO RA RILY RES TRICTED

UNRES TRICTED

$ 41,671,467

$

—

PERMA NENTLY RES TRICTED

$

—

TOTAL

$ 41,671,467

Less: institutional scholarships (15,009,507)

—

— (15,009,507)

Auxiliary services 7,360,557

—

— 7,360,557

NET REVENUE 34,022,517

—

— 34,022,517

Contributions and private grants

1,002,902

1,127,686

57,217

2,187,805

Other income 1,423,494 11,324

— 1,434,818

Federal grants 578,262

—

— 578,262

Investment income 27,385

—

— 27,385

Net assets released from restrictions: Satisfaction of donor restrictions

1,237,392 (1,237,392)

—

—

TOTAL SUPPORT AND REVENUE 38,291,952 (98,382) 57,217 38,250,787

O P E RAT IN G E X P E N SE S: Program services:

Instructional 11,803,366

—

— 11,803,366

Academic support 989,792

—

— 989,792

Student services 5,902,152

—

— 5,902,152

Auxiliary services 3,852,255

—

— 3,852,255

Institutional support 11,505,036

—

— 11,505,036

Fundraising 901,084

—

— 901,084

TOTAL OPERATING EXPENSES 34,953,685

—

— 34,953,685

Support activities:

Change in net assets from operations

3,338,267

(98,382)

57,217

3,297,102

Other changes in non—operating activities:

Endowment investment income

— 446,234

Transfer and restoration of underwater

endowment balances 93,565 (93,565)

— 446,234 —

—

Loss on sale of assets

—

—

—

—

Net change in split—interest agreements

—

—

—

—

93,565 352,669

Change in net assets before reclassification

3,431,832

254,287

— 446,234

57,217

3,743,336

Reclassification of endowment corpus

—

—

—

—

Change in net assets

3,431,832

254,287

57,217

3,743,336

Net assets, beginning of year (4,062,673)

3,651,481

3,562,753

3,151,561

NET ASSETS, END OF YEAR

$ (630,841) $ 3,905,768 $ 3,619,970 $ 6,894,897

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A S PECIAL THANK YOU TO EACH D ONOR AND FRIEND OF THE UNIVERSITY W HO M A DE IT P OSSIBLE TO SERVE 2,200 STUD ENTS WITH A HIG H QUALITY ED U C AT ION IN A CH RIST-CENTERED COMMUNITY. F OR A COMP LETE LIST OF D ONORS, P LEASE VISIT O U R DIG ITAL WALL OF HONOR AT G IVE.VANG UARD .ED U/D ONORS

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