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  • CONSOLIDATED FINANCIAL STATEMENTS AND

    INDEPENDENT AUDITORS REPORT

    June 30, 2015 and 2014

  • IVY TECH FOUNDATION, INC.

    CONTENTS Page CONSOLIDATED FINANCIAL STATEMENTS Independent Auditors Report 1-2 Consolidated Statements of Financial Position 3 Consolidated Statements of Activities 4 Consolidated Statements of Cash Flows 5-6 Notes to Consolidated Financial Statements 7-27 CONSOLIDATING INFORMATION Independent Auditors Report on Consolidating Information 28 Consolidating Schedule Statement of Financial Position Information 29 Consolidating Schedule Statement of Activities Information 30

  • 1

    Independent Auditors Report

    Board of Directors Ivy Tech Foundation, Inc. We have audited the accompanying consolidated financial statements of Ivy Tech Foundation, Inc. (a not-for-profit organization), which comprise the consolidated statements of financial position as of June 30, 2015 and 2014, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Managements Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

  • 2

    Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Ivy Tech Foundation, Inc. as of June 30, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States. Change in Accounting Principle As discussed in Note 1, Ivy Tech Foundation, Inc. adopted Accounting Standards Update No. 2013-06, Not-for-Profit Entities (Topic 958), Services Received from Personnel of an Affiliate during fiscal year 2015. The 2014 consolidated financial statements were adjusted to retrospectively apply this change in accounting principle. Our opinion is not modified with respect to that matter. Indianapolis, Indiana September 28, 2015

  • 2015 2014ASSETS

    Cash and equivalents 10,502,142$ 5,164,469$ Investments 16,135,292 19,870,710 Pledges receivable 9,325,439 9,106,942 Prepaid expenses and other assets 974,857 3,545,977 Property and equipment, net 73,190,646 76,916,326 Note receivable from related party 261,051 294,051 Net investment in direct financing lease with related party 6,290,279 Note receivable from bank 23,510,509 23,510,509 Cash restricted for Ivy Tech Properties, Inc. 368,128 Beneficial interest in trusts 204,434 204,417 Assets restricted for permanent endowment 30,958,791 26,335,407 Agency funds - Intersection Connection 5,000,738 4,959,108

    TOTAL ASSETS 176,354,178$ 170,276,044$

    LIABILITIESAccounts payable and accrued expenses 1,560,971$ 2,570,669$ Accounts payable - related party 1,273,768 412,890 Lines of credit borrowings 2,769,574 3,687,276 Interest rate swaps liability 261,079 247,784 Notes payable and capital lease obligation 58,784,077 54,057,405 Other liabilities 394,705 91,381 Agency funds - Intersection Connection 5,000,738 4,959,108

    Total Liabilities 70,044,912 66,026,513

    NET ASSETSUnrestricted 9,303,488 10,902,610 Restricted:

    Temporarily restricted 66,046,987 67,011,514 Permanently restricted 30,958,791 26,335,407

    Total Restricted 97,005,778 93,346,921

    Total Net Assets 106,309,266 104,249,531

    TOTAL LIABILITIES AND NET ASSETS 176,354,178$ 170,276,044$

    See accompanying notes.

    IVY TECH FOUNDATION, INC.

    CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONJune 30, 2015 and 2014

    3

  • Temporarily PermanentlyUnrestricted Restricted Restricted Total

    REVENUE, GAINS AND SUPPORTContributions:

    Cash and pledges 400,005$ 8,920,579$ 4,408,047$ 13,728,631$ Non-cash 3,153,394 3,153,394 Grant revenue 1,959,258 1,959,258

    Total Contributions 400,005 14,033,231 4,408,047 18,841,283

    In-kind contributed operational services 3,191,521 3,191,521 Investment income 687,044 587,540 (71,401) 1,203,183 Vending and royalty income 892,646 892,646 Special events income, net of expenses of $559,175 in 2015 and $785,161 in 2014 26,564 276,064 136,090 438,718 Real estate rental income 3,238,188 30,140 3,268,328 Gain on sales of property and equipment 73,862 73,862 Uncollectible pledges (2,597) (32,600) (5,150) (40,347) Miscellaneous revenue 1,954 9,995 11,949

    8,509,187 14,904,370 4,467,586 27,881,143 Net assets released from restrictions 15,713,099 (15,713,099) Reclassification of donor intent (155,798) 155,798

    Total Revenue, Gains and Support 24,222,286 (964,527) 4,623,384 27,881,143

    EXPENSESFinancial aid to students 3,405,518 3,405,518 Building improvements, supplies and equipment 3,314,238 3,314,238 Faculty and staff development 237,526 237,526 Special programs 2,588,773 2,588,773 Community outreach/promotional expense 1,375,019 1,375,019 Donations to Ivy Tech Community College 303,927 303,927 Donated property to Ivy Tech Community College 2,784,261 2,784,261 In-kind expense 1,337,065 1,337,065 Real estate expenses 6,106,675 6,106,675 Other program expenses 71,236 71,236

    Total College Assistance Program Expenses 21,524,238 21,524,238 Administrative expenses 1,410,903 1,410,903 Fundraising expenses 2,872,972 2,872,972

    Total Expenses 25,808,113 25,808,113

    INCREASE (DECREASE) IN NET ASSETS BEFORE LOSS ON INTEREST RATE SWAPS (1,585,827) (964,527) 4,623,384 2,073,030

    Loss on interest rate swaps (13,295) (13,295)

    INCREASE (DECREASE) IN NET ASSETS (1,599,122) (964,527) 4,623,384 2,059,735

    NET ASSETS

    Beginning of Year 10,902,610 67,011,514 26,335,407 104,249,531

    End of Year 9,303,488$ 66,046,987$ 30,958,791$ 106,309,266$

    See accompanying notes.

    2015

    IVY TECH FOUNDATION, INC.

    CONSOLIDATED STATEMENTS OF ACTIVITIESYears Ended June 30, 2015 and 2014

    4

  • Temporarily PermanentlyUnrestricted Restricted Restricted Total

    370,705$ 9,980,614$ 481,888$ 10,833,207$ 4,214,358 4,214,358 8,051,778 8,051,778

    370,705 22,246,750 481,888 23,099,343

    3,768,898 3,768,898 871,407 3,584,300 78,663 4,534,370

    1,053,730 1,053,730

    1,028,071 1,028,071 3,444,766 30,186 3,474,952

    61,281 61,281 (30,395) (30,395)

    31,621 (5,752) 324 26,193 9,602,408 26,853,160 560,875 37,016,443

    17,906,720 (17,906,720) (343,961) 343,961

    27,509,128 8,602,479 904,836 37,016,443

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