agb nacubo confidential – draft – not for distribution agb/nacubo compliance questionnaire study...

AGB NACUBOConfidential – Draft – Not For Distribution

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AGB/NACUBOCompliance Questionnaire Study

Selected Results

John D. WaldaPresident and CEO

National Association of College and University Business Officers

Richard D. LegonPresident

Association of Governing Boards of Universities and Colleges


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Type of Institution

39%

32%

15%

12%

2%

0% 10% 20% 30% 40%

A private institution recognized as exempt from federal income taxunder IRC 501(c)(3)

A public institution that is not recognized by the IRS as exempt fromfederal income tax under IRC 501(a) as an organization described in

IRC 501(c)(3), the income of which is excluded from tax under IRC 115

A public institution that is a politcal subdivision; i.e. an entity with thepower of government

A public institution that has applied for and received recognition ofexemption under IRC 501(c)(3)

Other

Note: all colleges/universities offer a four-year degree or higher

146 Colleges/Universities


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Comparison of Study Participants and All U.S. Four Year Colleges and Universities, Number of Students Enrolled


4

Do you currently have a written conflict of interest policy in place that governs members of the organization’s ruling body and its top

management officials?

Private Colleges/Universities


No, 3%

Yes, 97%


5

Does your organization currently make its audited financial statements available to the public?

Yes, 91%

No, 9%



6

Did your organization have an investment policy for endowment funds?

Private Colleges/Universities or Public Colleges/Universities with an endowment fund not managed by the state treasury or other state agency

Yes, 99%

No, 1%



7

Did your organization have an investment committee that oversaw investment of your endowment fund assets?

Yes, 94%

No, 6%

9%

24%

26%

16%

25%

0% 5% 10% 15% 20% 25% 30%

3 or 4

5 or 6

7 or 8

9 or 10

More than 10


How many individuals were members of the investment committee that oversaw the

endowment fund(s)?



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Total year end fair market value of endowment assets

28%

20%

13%

25%

8%

6%

0% 10% 20% 30%

$25M or less

$26M-$50M

$51M-$100M

$101M-$500M

$501M-$1B

More than $1B

All Colleges/Universities142 Colleges/Universities

Note: two colleges/universities did not provide any endowment information.


9

Did your investment committee or board adopt a target spending rate for all endowments?

No, 9%

Yes, 91%

No, 9%

Yes, 91%

All Colleges/Universities

If “Yes,” did your organization meet the adopted target spending rate?



Note: three colleges/universities did not provide information on adopting a target spending rate.


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What was the target spending rate?

3%

27%

65%

5%

0% 10% 20% 30% 40% 50% 60% 70%

Less than 4.0

4.0-4.9

5.0-5.9

6.0 or higher

All Colleges/Universities



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Endowment Fund Distribution

99%

81%

70%

64%

39%

37%

30%

53%

0% 20% 40% 60% 80% 100%

Scholarships, Awards, Grants and/or Loans

General Education Support and/or Libraries

Chairs, Professorships

General University Operations

Administrative Support (Discretionary)

Research

Public Service

Other

Percent of colleges/universities that distribute endowment funds to the following categories


Number ofColleges/

Universities% restricted by board or committee 0% 1-25% 26%-50% 51%-75% 76%-99% 100%Scholarships, Awards, Grants and/or Loans 50% 32% 11% 2% 2% 2% 125General Education Support and/or Libraries 55% 26% 8% 3% 6% 2% 107Chairs, Professorships 66% 22% 8% 1% 0% 3% 91General University Operations 43% 16% 12% 4% 13% 12% 82Administrative Support (Discretionary) 48% 15% 8% 4% 12% 13% 52Research 65% 13% 8% 4% 8% 2% 52Public Service 80% 13% 0% 0% 0% 8% 40Other 52% 22% 12% 1% 9% 4% 69


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Did the organization obtain an independent compensation comparability survey that was used in setting the person’s

compensation?

Yes, 64%

No, 36%

314 Executives



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Did the organization use a process intended to satisfy the rebuttable presumption procedure of section 4958 to determine

compensation of the person?

314 Executives

Yes, 53%No, 47%



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Five highest paid employees

Note: 25%, Median and 75% represent quartiles; compensation in thousands of dollars.

All Colleges/Universities 25% Median 75% Minimum Maximum AverageTotal 121$ 159$ 231$ 31$ 8,723$ 273$ Faculty 111$ 149$ 212$ 31$ 3,148$ 230$ Heads of Department 114$ 152$ 222$ 41$ 3,148$ 248$ Sports Coach 207$ 404$ 787$ 95$ 8,723$ 684$ Administrative/Managerial 108$ 147$ 181$ 38$ 999$ 166$ Other 136$ 161$ 457$ 93$ 999$ 299$ Public Colleges/Universities 25% Median 75% Minimum Maximum AverageTotal 134$ 168$ 275$ 39$ 8,723$ 304$ Faculty 127$ 159$ 231$ 39$ 1,266$ 224$ Heads of Department 129$ 150$ 212$ 91$ 1,002$ 213$ Sports Coach 205$ 395$ 763$ 95$ 8,723$ 705$ Administrative/Managerial 132$ 160$ 191$ 66$ 999$ 192$ Other 136$ 162$ 449$ 98$ 999$ 306$ Private Colleges/Universities 25% Median 75% Minimum Maximum AverageTotal 90$ 142$ 191$ 31$ 3,148$ 226$ Faculty 90$ 138$ 194$ 31$ 3,148$ 236$ Heads of Department 93$ 162$ 232$ 41$ 3,148$ 286$ Sports Coach 228$ 438$ 859$ 137$ 1,289$ 565$ Administrative/Managerial 89$ 130$ 162$ 38$ 453$ 133$ Other 153$ 160$ 557$ 93$ 613$ 283$


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Sports Coach

1%

23%

12%

26%

38%

0%

21%

7%

29%

43%

0% 10% 20% 30% 40% 50%

$100,000 or less

$100,001 - $200,000

$200,001 - $300,000

$300,001 - $500,000

Greater than $500,000

Public vs. Private Public (82 Sports Coaches)

Private (14 Sports Coaches)


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Public vs. Private Public (89 chancellors/presidents)

Private (45 chancellors/presidents)

Chancellor/President

3%

15%

38%

22%

21%

18%

18%

18%

27%

20%

0% 10% 20% 30% 40%

$150,000 or less

$150,001-$200,000

$200,001-$300,000

$300,001-$400,000

More than $400,000


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UBI Activities reported on Form 990-T (Q27)

UBI Activity Loss Gain UBI Activity Loss GainAdvertising 11 31 Intellectual Property 0 0Facility Rental 18 21 Hotel Operation 3 4Arena Rental 11 4 Conference Center Operation 8 8Recreation Center Usage 15 8 Restaurant Operation 3 2Athletic Facilities Usage 12 7 Catering Services 12 10Personal Property Rentals 8 4 Food Services 2 6Telecomm Related Rentals 4 13 Income from Controlled Orgs 0 2Debt Financed Income 0 1 Credit Card Promotions 0 0Catalog Sales 3 2 Computer Services 2 6Internet Sales 1 2 Exploited Exempt Activity Income 2 3Travel Tours 6 3 Bartering 0 0Partnership Allocations 5 21 Parking Lot Operations 2 12S-Corp Allocations 0 1 Power Generations 1 2Working Interest in Oil, Gas, etc. 0 1 Bookstore 5 15Exclusive Use Contracts 3 2 Golf Course 10 3Commercial Research 2 3 Other 67 69Patents 0 0

Total Respondent Gross Receipts or Sales: $146.2 million

Total Respondent Current Net Operating Loss: $-5.2 million

Number of colleges/universities with current net operating gain/loss by activity:


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Percentage of Colleges/Universities Offering an AverageTuition Discount Percentage


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To access the full report, visit:www.agb.org/irs

http://www.agb.org/irs

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