Indiana University Notes to the Financial Statements
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Financial Report 2012–13 TABLE OF CONTENTS 2 Message from the President 5 Message from the Vice President, Chief Financial Offi cer and Treasurer 7 Independent Auditors’ Report 10 Management’s Discussion and Analysis 17 Statement of Net Position 18 IUF Statement of Financial Position 19 Statement of Revenues, Expenses, and Changes in Net Position 20 IUF Statement of Activities 21 Statement of Cash Flows 23 Notes to the Financial Statements 45 Excerpts from the IU Foundation– Notes to Financial Statements 55 Trustees and Administrative Offi cers of Indiana University 56 Additional Information 1 Message from the President It is abundantly clear that—more than structure with a focus on consolidation ever before in history—the future and scale in administrative and student of our state and nation in a global, services, procurement processes, health digital, information economy depends care and capital fi nancing, resulting in on the quality of our higher education. cumulative cost containment, effi cien- At Indiana University, we continue cies and avoidance totaling nearly $400 to steadfastly embrace the enduring million. value of a rigorous college educa- tion, and we are taking steps that will We established IU Online to coordinate ensure that Indiana University off ers and manage IU’s online initiatives. IU, the kinds of educational opportunities incidentally, now has over 100 online that one would expect of a university programs, over 1,000 online courses that aspires to be one of the fi nest and, by 2015, all schools expect to off er universities of the 21st century. fully online graduate certifi cates or degrees. Ensuring the Quality, Value, and Aff ordability of an IU Education We have completed fund-raising campaigns for IU Bloomington and As a public university, we have an IUPUI totaling over $2.5 billion with obligation to ensure that an IU educa- a major focus on student scholarships tion remains accessible and aff ordable and fellowships. for qualifi ed Hoosier students. In recent years, we have redoubled our We have made targeted investments eff orts to ensure quality, value and in new facilities and renovations aff ordability in a number of ways. to expand and enhance IU’s core academic educational strengths. And Tuition increases for this biennium we have begun a comprehensive Michael A. McRobbie are the lowest in almost half a century university-wide program of repair and President, Indiana University with the undergraduate resident rehabilitation aimed at making the tuition increase at 1.75 percent. most effi cient and eff ective use of IU’s physical assets. The Honorable IU’s “Finish in Four” program guaran- Michael R. Pence tees no tuition increases for juniors Recognition of IU’s Value Governor, State of Indiana and seniors who are on track to fi nish State House, Room 206 their degrees on time, and the Summer For the sixth consecutive year, Indiana 200 West Washington Street Tuition program provides a 25 percent University was named among the top Indianapolis, IN 46204 tuition discount to students taking 40 public schools on the list of “100 Best courses over the summer sessions. Values in Public Colleges” released Dear Governor Pence: by Kiplinger’s Personal Finance. IU rose We have also increased undergraduate one spot from last year’s list to 39th On behalf of the Trustees of Indiana and graduate fi nancial aid from $139 overall and ranks fourth among Big Ten University, I am pleased to present to million in 2007 to $255 million last universities. you IU’s 2012-13 Financial Report. year—an increase of 83 percent. More recently, Washington Monthly For nearly 200 years, Indiana Univer- We have undertaken a complete ranked IU Bloomington at 17th overall sity and the State of Indiana have and ongoing overhaul of career and in its “Best Bang for the Buck” survey been united in a powerful partner- academic advising. of over 1,500 universities. IU Bloom- ship in which the citizens of the state ington ranks fi rst in the survey among have entrusted us with land, with We have also established programs for Big Ten universities, and fourth among resources, and with the education all students in fi nancial literacy aimed members of the prestigious Association of their children. We have returned at helping ensure lower student debt of American Universities. that trust by building a community and bett er debt management. of scholars who contribute in trans- formative and innovative ways to the We have conducted a comprehensive prosperity and progress of the state, review of the university’s fi nancial the nation, and the world. 2 Record Enrollments Transforming Indiana University the fi elds that will serve as the school’s for the 21st Century academic foundation. At the same Indiana University continues to att ract time, it will position the university for record numbers of highly qualifi ed The issue of the value of an IU educa- a future in which IU is the nation’s students from around the state, the tion and career opportunities for leading gateway for students seeking nation, and the world. our graduates in the contemporary to master the professional skills economy was a central focus of the needed to actively engage in multiple This fall, we enrolled a record 115,400 New Academic Directions report of platforms of media, both traditional students across the state. Most of April, 2011, when it asked “is IU and emerging, and to fully understand IU’s campuses also achieved record off ering the kinds of degrees and how media aff ect and inform our att i- enrollment, including a record 46,817 educational opportunities that one tudes, beliefs and values. students in Bloomington. And on would expect of a university that nearly every measure of quality and aspires to be one of the fi nest universi- A Leading International University achievement this is also a record class ties of the 21st century?” By any measure, Indiana University across the entire university. is one of America’s leading interna- In response to this, we have seen tional universities, and we continue As these record enrollments clearly the most comprehensive academic to increase our international engage- show, more than ever before, students restructuring in IU’s history, with the ment. We now rank seventh in the and their families recognize the value establishment, merger, transformation of an Indiana University education. or closure of seven schools. In the last Nevertheless, we cannot rest on these year, we have seen the formal estab- laurels. In all the areas mentioned lishment of the Fairbanks School of above and more, we must continue Public Health at IUPUI, the School of to redouble our eff orts to ensure the Public Health at IU Bloomington, the continued value and aff ordability of an Lilly Family School of Philanthropy, IU education. the School of Global and Interna- tional Studies, and the inauguration A Leading Public Research of the newly confi gured School of University Informatics and Computing, which now includes all programs previously Our outstanding faculty members off ered by the IU’s School of Library continue to successfully compete with and Information Science. top researchers across the nation and around the world for research funding I am also pleased to note that, at their that is becoming increasingly scarce. October 2013 meeting, the IU Board of Trustees voted to approve the forma- country in the overall number of Indiana University received nearly tion of a new school that will provide students who are studying abroad. $452 million in grants and awards a nexus for IU’s acclaimed programs Study and service abroad are essential for research and other sponsored of education and research in jour- components of a 21st Century educa- programs in fi scal year 2013. At a time nalism, telecommunications, commu- tion meant to prepare students to live when research universities are facing nications and culture, and fi lm. The and work in a fl at world. We also rank unprecedented fi nancial challenges new IU Media School, which will 11th nationally in the number of inter- and dwindling funding opportuni- offi cially come into existence on July national students enrolled. ties, Indiana University has been able 1, 2014, will be housed in the College to sustain its research excellence. The of Arts and Sciences. The innovative Today, without question, increased breadth, depth, and quality of our new IU Media School will ensure international integration and global research clearly signal IU’s continu- that IU is at the forefront of teaching, interconnectivity truly are the major ing status as one of the leading public research, and service about the under- forces driving and shaping our research universities in the world. standing and production of media as contemporary society. The need for it continues its dramatic evolution and internationally minded and diplomati- transformation. The culmination of cally skillful citizens is greater than many years of productive discussions, ever. Understanding and responding it will build upon and honor the tradi- to these forces is a paramount concern tions of excellence IU has att ained in for us all. 3 This spring, we celebrated two • 11 international area studies appropriations, donor contributions, historic milestones in the life of programs that receive funding grants, contracts, and student fees, Indiana University that will help through the U.S. Department of and are committ ed to achieving the address these crucial challenges and Education’s Title VI Program (again, best return on all of those investments. help prepare this generation and more than any other university); future generations to collaborate • a great breadth and depth of inter- As we approach Indiana University’s across cultures and nations and forge national research and scholarship; bicentenary, which we will celebrate global solutions: the inauguration and during the 2019-20 academic year, we of the School of Global and Interna- • a high level and wide variety of must commit to strengthening our tional Studies within the College of international engagement.