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2018 Financial Report Ii Report of the Treasurer

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2018 Financial Report Ii Report of the Treasurer Financial Report Year Ended June 30, 2018 Front Cover: Frog Baby Table of Contents Ball State University Financial Report 2017-2018 To the President and Board of Trustees ii Report of the Treasurer iii General Information v Board of Trustees and President of Ball State University vi Independent Auditor’s Report vii Management’s Discussion and Analysis 1 Statement of Net Position 17 BSU Foundation Combined and Consolidated Statements of Net Position 19 Statement of Revenues, Expenses and Changes in Net Position 20 BSU Foundation Combined and Consolidated Statements of Activities 21 Statement of Cash Flows 22 BSU Foundation Combined and Consolidated Statements of Cash Flows 24 Notes to Financial Statements 25 Required Supplemental Information 62 Notes to Required Supplemental Information 68 Supplemental Information 72 To The President and Board of Trustees Ball State University This financial report presents the financial position of Ball State University at June 30, 2018 and the results of activities for the year then ended. Bernard M. Hannon Vice President for Business Affairs and Treasurer Ball State University’s Report Date…..…………………..……..………October 26, 2018 Ball State University—2018 Financial Report ii Report of the Treasurer I respectfully submit the Annual Financial Report of Ball State University for the year ended June 30, 2018, on behalf of the Board of Trustees of Ball State University. The University received an unmodified opinion on the audit letter from the Indiana State Board of Accounts which is included in this annual report. Contained within this report are the financial statements for the year ended June 30, 2018 with comparative information from the previous year. These statements, along with the Notes to the Financial Statements, Management’s Discussion and Analysis, and Required Supplemental Information, present clearly the financial activity, and the financial strength and stability of the University. The University’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States. About Us The University initially began 100 years ago as an institution of higher education, meant to meet the growing economic needs and meet the demand for teachers in the east central Indiana region. The school faltered and closed three times before a family of five brothers purchased the land and buildings and donated them to the State of Indiana to secure the start of what is today Ball State University. The Ball family, widely known for their manufacturing of Ball glass jars, has continued to charitably support the school and the local community for generations. The ideals and steadfast philanthropic commitment needed to put this school on solid foundation has guided this institution to become a nationally respected multicultural and multidisciplinary institution of higher education. Today, as we celebrate the centennial of our founding, Ball State’s entrepreneurial spirit continues to shine through numerous expansions and additions of academic offerings, technological resources, immersive learning opportunities, community outreach projects, and state-of-the-art facilities. These investments are preparing bright students to take advantage of current and emerging job opportunities, meet society’s most pressing needs, and serve the communities in which they will live and work. As we continue to grow, to be nationally and globally recognized for our awards and achievements, we still hold fast to the virtues and values for which we stand. Our institutional icon, Beneficence, is a visual reminder of our beneficence pledge to maintain high standards of scholarship and excellence, to practice academic honesty, to act in a socially responsible way, and to value the intrinsic worth of every member of the community. The University’s new branding campaign honors this pledge and Beneficence with the “We Fly” messaging: We spark intellectual curiosity. Spirited and motivated, we learn, grow, and take flight. Our faculty and staff-everyone in our community-treat students as partners, from day one. In classrooms and labs, on the sports fields, in immersive learning projects off campus-with agility and perseverance-Cardinals fly. We are grounded in our values, lifted by our knowledge, and go confidently upward toward ever greater opportunities. Ours is a simple promise: to challenge each other to excel. And with Beneficence as our guide-We Fly. Recognitions and Achievements We have a vibrant campus community with inspired faculty who work closely with students to help stimulate intellectual growth and encourage them to engage in immersive learning opportunities with community and business leaders. This hands-on experience allows the student to graduate with real world experience. Below are only a few of the many rankings and recognitions received by Ball State University. • Named by U.S. News & World Report to its 2018 Top 100 Public Universities. • Listed among “Colleges Where Applications Are on Rise” by 24/7 Wall Street in 2018. In an analysis of 600 institutions, Ball State was No. 34, with applications up almost 73 percent in five years. • Named one of the best universities in the Midwest by The Princeton Review for 14 years. • Earned the Community Engagement Classification from the Carnegie Foundation for the Advancement of Teaching. The classification recognizes colleges and universities that demonstrate an institution-wide commitment to public service, civic involvement and community partnerships. • Received a Higher Education Excellence in Diversity (HEED) Award from Insight into Diversity in 2016, 2017 and 2018. • Ranked in the top 20 in the country for three graduate programs in U.S. News & World Report’s 2017 “Best Online Programs:” MBA was 17th, nursing was 13th, and education was 16th. Our online bachelor’s programs were also ranked 36th. • Recognized as the first higher education institution in the country to earn Quality Matters’ Learner Support Program Certification. Quality Matters (QM), provides a nationally recognized standard of best practices for online and blended learning. • Named a Military Friendly School for nine years by Victory Media. In 2018, Victory Media also ranked our online programs No. 8 in the country. • Ball State is among only 26 schools in the country to make The Princeton Review’s Green Honor Roll announced in 2018. Schools on this list received a perfect score of 99, covering such issues as academics, construction, food sources, and recycling. Ball State is also in the organization’s 2018 Guide to 399 Green Colleges. Ball State University—2018 Financial Report iii Looking Ahead Our campus has embarked on a new strategic plan that looks forward to 2040 as a testament to our unwavering desire and long-term commitment to advancement of the University. While the landscape of higher education is ever rapidly changing, the foundational values and dreams that were present in 1918 still hold true today. Our focus remains on the distinctive educational experience students receive at Ball State, and providing the tools and opportunities to help students realize success at the University and beyond. We have many capital projects underway. The Health Professions Building, home to our new College of Health, will welcome its first students in the fall of 2019. Adjacent to this new state-of-the-art facility in our East Quadrangle will be the new Foundational Sciences Building, construction of which will begin in summer of 2019. These two new facilities position the University to better meet the demands of health and STEM programs that are critical not only to the health of the University, but to the State of Indiana and the nation as a whole. Many other capital projects are in various stages of planning or initial construction, including the planned refreshing of our student residence halls. Our charge is to maintain and wisely utilize campus resources, to provide safe and adequate physical spaces to meet the changing needs in higher education, and to provide quality educational opportunities to meet the evolving needs and demands of students. University administrators and Muncie community leaders have pledged to work together for the betterment of the whole community. After much study and discussion, including several open community forums with all interested parties, the campus and community members are excited to engage with one another on joint efforts for the mutual benefit of the community. True to our roots of advancing education and community engagement, the Indiana State Legislature, granted Ball State the responsibility of appointing the governing board of the local public community school system. This exciting and challenging endeavor commenced on July 1, 2018. Finally, as we embark on our historic centennial year, we will celebrate the University and honor its legacy. We embrace and pay homage not just to the Ball Family, but also to our students, alumni, donors, faculty, staff, community members and to the members of state government, past and present, who have collectively made this premier institution what it is today. Sincerely, Bernard M. Hannon Vice President for Business Affairs and Treasurer * This report has been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) for governmental colleges and universities as put forth by the Governmental Accounting Standards Board (GASB). See the accompanying Notes to Financial Statements for a full
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