Vanguard University Annual Report 2011-2012

VANGUARD UNIVERSITY ANNUAL REPORT / 2011 – 2012

DR. CAROL A. TAYLOR PRESIDENT

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.

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.

MESSAGE FROM THE PRESIDENT:

3: 2011 - 2012 ANNUAL REPORT

5

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 faith-

based 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.”

: 2011 - 2012 ANNUAL REPORT

THE LEARNING RELATIONSHIPS THAT ARE FORMED DURING THIS SHARED QUEST

WILL LAST FOR A LIFETIME. THIS IS THE VANGUARD LEARNING EXPERIENCE.

7

DEPARTMENT OF MUSIC

:beyond the expectedTALENT IS AS TALENT DOES: Vanguard student Samuel Hines had a

transformational experience in high school when he met classical guitarist

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

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

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

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

international guitarists for the prestigious Parkening International Guitar

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 SPIRIT IS IN US, GUIDING, COMFORTING, AND EQUIPPING US

FOR THE NEXT CHAPTER OF OUR STORY . . .


CARNEGIE HALL, LINCOLN CENTER

FOR THE PERFORMING ARTS IN NEW

YORK CITY, AND SEGERSTROM CENTER

FOR THE PERFORMING ARTS ARE JUST

A FEW IMPRESSIVE VENUES IN WHICH

VANGUARD STUDENTS HAVE PERFORMED.

THE PERFORMANCE GROUPS, RANGING

FROM JAZZ AND GUITAR ENSEMBLES TO

TRADITIONAL CONCERT CHOIRS, ARE LED

BY A CADRE OF SEASONED MUSICIANS

AND TALENTED MUSIC PROFESSORS IN

THE VANGUARD MUSIC DEPARTMENT.

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.


TURNING DREAMS INTO REALITY...

:beyond integration

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.”

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.

I PRESS ON TOWARD THE GOAL FOR THE PRIZE OF THE UPWARD CALL OF GOD IN

CHRIST JESUS. —PHIL IPPIANS 3:14

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:beyond integration


STUDY ABROAD PROGRAM

:beyond the classroom

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.”

“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

. . . OUR UNDERSTANDING OF THE WORLD — INFORMS AND DEEPENS OUR FAITH,

BRINGING COLOR AND L IFE IN SURPRISING WAYS . . .

:beyond the classroom


LETTER FROM VICE PRESIDENT FOR BUSINESS AND FINANCE:

MRS. LETTIE COWIE 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.

FOR A COPY OF THE REPORT OF INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS

PLEASE CONTACT LETTIE COWIE, VICE PRESIDENT FOR BUSINESS AND FINANCE AT 714.966.5484.

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ASSETS:

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 — 8,008

Prepaid expenses 520,387 452,618

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

L IABIL IT IES:

Accounts payable $ 1,018,411 $ 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

NET ASSETS:

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

YEAR ENDED JUNE 30, 2012 2011

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CONSOLIDATED STATEMENT OF ACTIVITIES

SUPPORT AND REVENUE:

Student tuition and fees $ 45,503,171 $ — $ — $ 45,503,171

Less: institutional scholarships (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 EXPENSES:

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


Support activities:

Institutional support 13,806,396 — — 13,806,396

Fundraising 514,499 — — 514,499

TOTAL OPERATING EXPENSES 37,854,645 — — 37,854,645

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) — (76,547)

Transfer and restoration of underwater endowment balances (8,426) 8,426 — —

Loss on sale of assets (30,658) — — (30,658)

Net change in split—interest agreements — (60,572) — (60,572)

(39,084) (128,693) — (167,777)

Change in net assets before reclassification 2,062,755 350,464 133,239 2,546,458

Reclassification of endowment corpus 1,000,000 — (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 $ 4,256,232 $ 2,753,209 $ 9,441,355

YEAR ENDED JUNE 30, 2012

UNRESTRICTED TOTALTEMPORARILY

RESTRICTEDPERMANENTLY

RESTRICTED

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YEAR ENDED JUNE 30, 2011

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SUPPORT AND REVENUE:

Student tuition and fees $ 41,671,467 $ — $ — $ 41,671,467

Less: institutional scholarships (15,009,507) — — (15,009,507)


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

OPERATING EXPENSES:

Program services:

Instructional 11,803,366 — — 11,803,366

Academic support 989,792 — — 989,792

Student services 5,902,152 — — 5,902,152


Support activities:

Institutional support 11,505,036 — — 11,505,036

Fundraising 901,084 — — 901,084

TOTAL OPERATING EXPENSES 34,953,685 — — 34,953,685

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 — 446,234

Transfer and restoration of underwater endowment balances 93,565 (93,565) — —

Loss on sale of assets — — — —

Net change in split—interest agreements — — — —

93,565 352,669 — 446,234

Change in net assets before reclassification 3,431,832 254,287 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

UNRESTRICTED TOTALTEMPORARILY

RESTRICTEDPERMANENTLY

RESTRICTED



A SPECIAL THANK YOU TO EACH DONOR AND FRIEND OF THE UNIVERSITY WHO

MADE IT POSSIBLE TO SERVE 2,200 STUDENTS WITH A HIGH QUALITY EDUCATION IN

A CHRIST-CENTERED COMMUNITY. FOR A COMPLETE L IST OF DONORS, PLEASE VISIT

OUR DIGITAL WALL OF HONOR AT GIVE.VANGUARD.EDU/DONORS

55 FAIR DRIVE, COSTA MESA, CA 92626 / vanguard.edu

Vanguard University Annual Report 2011-2012

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