2013-2014 Annual Report - The University Foundation

CALIFORNIA STATE UNIVERSITY, CHICO

T H E U N I V E R S I T Y F O U N D A T I O N

2013—2014 ANNUAL REP ORT

BOARD OF GOVERNORS i

FROM THE PRESIDENT 1

STORIES OF IMPACT

A TESTAMENTARY GIFT 2

COLLEGE OF AGRICULTURE 3

COLLEGE OF BEHAVIORAL AND SOCIAL SCIENCES 4

COLLEGE OF BUSINESS 5

COLLEGE OF COMMUNICATION AND EDUCATION 6

COLLEGE OF ENGINEERING, COMPUTER SCIENCE, 7 AND CONSTRUCTION MANAGEMENT

COLLEGE OF HUMANITIES AND FINE ARTS 8

COLLEGE OF NATURAL SCIENCES 9

FINANCIAL REPORT

PHILANTHROPIC HIGHLIGHTS 10 GIFTS AND PLEDGES DONORS

STATEMENT OF FINANCIAL POSITION 11 ASSETS AND LIABILITIES ENDOWMENT VALUE AND NET ASSETS ENDOWMENT MARKET VALUE POOLED ENDOWMENT INVESTMENT PERFORMANCE

SUMMARY OF REVENUE AND EXPENSES 12 REVENUE FROM FINANCIAL STATEMENT EXPENSES FROM FINANCIAL STATEMENT

ENDOWMENT SUMMARY 13 ENDOWMENT BY PURPOSE ENDOWMENT INVESTMENT ALLOCATION

INDEPENDENT AUDITORS’ REPORT 14

C O N T E N T S

CALIFORNIA STATE UNIVERSITY, CHICO

T H E U N I V E R S I T Y F O U N D A T I O N2013—2014 ANNUAL REP ORT

C A L I F O R N I A S TAT E U N I V E R S I T Y, C H IC O

HE University Foundation was

founded in 1940, dedicated to

supporting California State University,

Chico’s mission as a comprehensive,

regional university principally serving Northern

California by leveraging private support for excellence

in instruction, research, and public service.

CSU, Chico is renowned for its “Chico Experience”

that provides distinctive and innovative programs, superior

academic technologies, exceptional levels of student

support, a wonderful college-town atmosphere, a friendly

campus, a strong sense of community, and contributions

to the community and the environment. These attributes

enhance student learning and student success. Supporting

the Chico Experience for students, faculty, and staff is at the

forefront of every initiative, decision, and activity undertaken

by the University Foundation’s Board of Governors.

The University Foundation supports the University’s

mission by providing oversight of the following activities:

▸ engaging private support for academic programs,

faculty and students, equipment, and other

capital needs

▸ stewarding the resources entrusted to

the University Foundation to maximize impact

on people and programs

▸ partnering with University Advancement to

support our alumni, friends, and community

members who are prospective donors to ensure

proper recognition and stewardship for all

donors and to serve as ambassadors to all

external constituents, representing the Chico

Experience and telling the story of CSU, Chico’s

impact

Through the partnership of the University Foundation’s

Board of Governors and University Advancement, as of

June 30, 2014, The Foundation’s net assets were nearly $72

million. This is a testament to the loyalty, generosity, and

dedication of our many supporters.

Douglas K. Guerrero, Chair Retired Regional Vice President, West Region, CEMEX

Gregory Kelley, Vice Chair Chief Executive Officer, California Olive Ranch

Richard E. Ellison, Secretary Vice President for University Advancement

Lori Hoffman, Treasurer Vice President for Business and Finance

Robert Kittredge, Past Chair Retired Managing Partner, PricewaterhouseCoopers

Drew Calandrella Vice President for Student Affairs

Mark Francis President and CEO, Golden Valley Bank

Claire Godwin Student Representative

Evelyn Jacobs Regional President, U.S. Bank

Tod Kimmelshue Regional Vice President, Golden State Farm Credit

JoAnn Morgan Past President, Turner Print Museum Board

James O’Bannon Faculty Representative

Michael Prime Retired Founder, Option Care

Leslie Schibsted Interim Associate Vice President for Development

Belle W.Y. Wei Provost and Vice President for Academic Affairs

Paul J. Zingg President

B O A R D O F G O V E R N O R SJuly 1, 2013—June 30, 2014

i

T H E U N I V E R S I T Y F O U N DAT I O N | A N N UA L R E P O R T 2 01 3 —2 014

F R O M T H E P R E S I D E N T

ONSIDERING the beauty of our campus, the dedication of our faculty and staff, and our students’

commitment to values like service and sustainability, it is clear that Chico State is a place where we

do so much more than confer degrees. Rather, we create informed, engaged citizens who understand

their role in our global community and how each can contribute to its betterment.

Our institution could not achieve this without partners like you: people who love and support Chico State

and take action to ensure it flourishes and inspires. Whether you have volunteered for one of our many service

organizations, gifted funds to start a scholarship, or donated your time and talents by serving on a University board,

your contributions have made a difference on this campus and in the community, and for that we are grateful.

I am very pleased to present you with this University Foundation annual report, which clearly demonstrates the

many ways private support is making a difference in the lives of our students and in the greater community. Inside

these pages, you’ll find stories on faculty, students, and others positively impacted by private, philanthropic support.

I know you will be as proud as I am about what our University can achieve with help from our friends. These stories

remind us every day of the noble, necessary work that is our privilege to accomplish.

Besides celebrating the impact of philanthropy, this report also celebrates another banner year in fundraising

at Chico State. Thanks to the generous support of our friends and alumni, the 2013–14 fiscal year saw an increase in

giving of 7.6 percent over the previous year. The Foundation also enjoyed strong endowment returns of 14 percent,

which is great news for the future of our students, programs, and University.

For 17 years, Chico State has been ranked a top-10 regional public university in the West by U.S. News and World

Report. With your support, we will continue to achieve that mark, serving our students, community and the North

State by delivering high-quality education and services. From all of us at Chico State, we are grateful to share the

journey with you.

Warmly,

Paul J. Zingg, President

California State University, Chico

1

Celebrating the impact of philanthropy at CSU, Chico


INCE earning an art degree from Chico

State College in 1967, New York City artist

Mary Rolland has carved out a successful

career for herself. Her colorful landscapes

have sold to more than 700 art collectors. She is currently

a successful real estate broker in New York City and

intends to return to full-time painting in 2015.

Though she enjoyed art as a youth, Rolland says it

wasn’t until she arrived at Chico State College in 1963

that she understood a career in art was plausible, or that

a degree program existed to support one. “Chico State

guided me from the day I registered into an arts program

that offered great teaching, mentoring, and support,” she

said.

That support has inspired Rolland to establish a

$1.95 million arts bequest that will fund an endowment.

Her bequest will provide critical funding to future

students pursuing their dreams of being artists.

In addition to this testamentary gift, she has established

an annual award which will allow a student in the fine

arts to spend a week with her in New York, visiting artists’

studios and gaining inspiration from the city.

Rolland’s vision in creating these scholarships

reflects her own creativity and innovation.

After graduating from Chico State College, she spent

time in Hawaii and Sun Valley, Idaho, before moving to

New York to pursue her career as an artist. In 1981, she

purchased a loft in Soho, where she has since lived and

worked and sold her paintings, mostly through private

studio visits.

Rolland urges those interested in a career in the arts

to remember that there are alternatives to the mainstream

way of doing things, and that anything is possible if you

just believe.

“This gift is intended to continue the legacy of

those who helped me, such as [artist and art professor]

Ken Morrow, who during his tenure continually invested

in the success of his students, providing his artistic

guidance and encouragement,” Rolland said.

“I hope that this gift will encourage students to stay

in the field, strive for their own successes, and create

great art so that, when able, they will choose to help

others as well.”

A T E S T A M E N T A R Y G I F T

Alumna’s bequest positions future arts students for success

2

Art alumna and artist Mary Rolland’s $1.95 million arts bequest

and accompanying scholarship will ensure a bright future for

aspiring artists at CSU, Chico.


N CSU, Chico’s steadily growing College

of Agriculture, industry connections are

not only vital but also mutually beneficial.

This notion was recognized last year by

Barry Swenson, owner of Alturas Ranches and Green

Valley Enterprises, after his company partnered with

the college on a pilot study of Lowline Angus-influenced

cattle.

He was so pleased with the college’s ability to do the

research and return valuable data that he made a $50,000

donation to install six GrowSafe feeders at the University

Farm to support further research comparing the growth

performance, feed efficiency, and carcass traits of these

cattle.

The donation was used as a match to obtain an

Agricultural Research Institute grant, which is offered

only to California State Universities.

GrowSafe systems collect individual data to monitor

feed intake and animal behavior. Each steer receives an

electronic ear tag, which tracks and records feed intake

each time the animal eats. The system automatically

calculates intake by monitoring the weight of feed in the

feed bin before, during, and after each animal eats in a

herd setting.

Having individual intake information for each

animal in a pen allows operation managers to identify

more efficient animals compared to herd mates. It also

helps manage potential health issues by identifying

animals that go off feed. Jess Dancer, a CSU, Chico

alumnus and a ranch manager for the company, said her

company believes the GrowSafe system could change the

future of the cattle and beef industries.

“Partnering with Chico State is a huge opportunity to

educate our beef producers, cattlemen, and consumers in

the advantage and importance of feed efficiency,” Dancer

said.

The College of Agriculture completed its first official

foundation project with Alturas Ranches this summer and

began a second one with a new set of cattle in September.

Professor Kasey DeAtley, one of the faculty

overseeing the program, says the project gives students

the opportunity to be on the forefront of beef cattle

feeding technology in breed research.

“The really cool part about it, and this is the whole

reason I’m at Chico State, is that we have students

involved at every aspect of this thing,” she says. “We

build students into our grants, we pay them, they’re

out there feeding the cattle, they’re out there doing that

management of the cattle, classes are involved with it, so

it makes a great teaching tool.”

C O L L E G E O F A G R I C U L T U R E

Industry partner provides matching funds to support feed research

3

Agriculture major Garrett Wallis is one of the students working

with GrowSafe feed equipment, purchased in part with funds

contributed by Green Valley Enterprises and Alturas Ranches.


N the more than 30 years that they’ve known

one another, emeriti faculty members Bradley

Glanville, Judy Bordin, and Ailene Dean have

developed an enduring collegiality.

This year, they demonstrated that collegiality in the

form of a scholarship, the Child Development Emeriti

Faculty Scholarship, to which they each contributed.

“We wanted to leave some kind of legacy, but not

in anybody’s name, so that people could contribute to it

and build upon it in the future,” Glanville said. “It wasn’t

meant to elevate anybody; it was a way to try to honor

a student, a way to give back to the University and give

back to the people who really make the University—the

students.”

Together, they contributed $12,500 toward the fund

that they hope will be built upon by current and future

child development faculty. The scholarship, which will

be awarded to one student per year, is a reflection of their

personal and professional desire to assist students in

furthering their study and work on behalf of children and

their families.

“This is going to sound very cliché, but having good

early years, having good teachers, effective adults who

work with kids in no matter what area, whether they

are recreation leaders, or preschool teachers, or social

workers—to have an understanding about how children

grow and develop is essential,” Bordin said.

The scholarship will serve as a way not only to help

students with the cost of attending college but also to

honor them and generate a positive sense of belonging

within their field.

“It’s just one of many ways to support students,”

Dean said. “We all support students in our teaching, but

this is a more financial way to support and recognize

students.”

Applicants for the scholarship must be continuing

or transfer juniors or seniors with a minimum 2.8 GPA.

In addition, they must write a brief essay on how they

intend to impact the field of child development.

The first scholarship will be awarded in October

2015.

“We certainly hope that we have created something

that other faculty members will see as a valuable way to

encourage students in their field,” Glanville said. “It can

be done, and if a lot of faculty members come together,

they can all contribute a small amount and they can get

to the funding level that will last in perpetuity.”

C O L L E G E O F B E H A V I O R A L A N D S O C I A L S C I E N C E S

Emeriti faculty establish scholarship for child development students

4

Child development faculty emeriti Bradley Glanville, Judy Bordin,

and Ailene Dean hope to inspire other faculty to contribute to

their scholarship.


HE name Scott Chalmers is synonymous

with RSC Associates, the successful

residential and commercial property

management company based in Chico.

A 1974 MBA alum, Chalmers founded the firm

in 1981 and spent 30 years growing it throughout the

North State. Before he sold it in 2010, the company had

established new offices in Sacramento.

While Chalmers may best be known for his business

acumen, his penchant for helping others has made no

small difference. While he was pouring himself into his

business, he was also indulging his passion for aiding

students in higher education. In addition to founding

scholarships through Rotary and Butte College, in

1995 he started the R. Scott Chalmers Scholarship for

business majors at CSU, Chico. For nearly two decades,

the scholarship has helped hard-working students

realize their dreams of achieving a high-quality business

education.

But Chalmers wasn’t finished. Driven by a desire to

make a lasting impact at the University that gave him

his start, in 2014 he established a charitable trust of

approximately $250,000 to support his scholarship. The

move cemented his commitment to the University and

his ability to support students long term.

“Education totally changed my life,” Chalmers said.

“It gave me the confidence to take chances I wouldn’t have

otherwise. One of my beliefs was always to give back.”

A self-starter from a young age, Chalmers

left home at 18 and attended Napa Junior

College, serving as student body vice-president.

He needed the G.I. Bill to pay for college, so

he became a medic for the U.S. Army

and served in Vietnam. When he

returned, he enrolled at CSU,

Chico, where he met his now-late

wife, Cindy. Their two children,

Christa and Cara, are also

university alumnae.

Chalmers credits the solid

reputation of the College of Business

and the Career Center for helping

him get his start after graduating. He

advises current students to work hard

and maintain a thirst for knowledge.

“You’re never going to know

everything,” he said. “There’s always

more to learn.”

C O L L E G E O F B U S I N E S S

Alumnus creates lasting legacy with

charitable trust

5

Alumnus Scott Chalmers’ charitable trust

will support the scholarship he started for

business students in 1995.


C O L L E G E O F C O M M U N I C A T I O N A N D E D U C A T I O N

Local company’s support of autism camp pays dividends

CSU, CHICO summer camp to aid autistic

teens and adults through the arts was made

possible with a gift in 2014 from a prominent

area business.

Professor Rebecca Lytle, adapted physical education

program coordinator, learned in June that Cleanrite-Buildrite

was donating $15,000 raised at its annual fundraising golf

tournament for the Freedom in Elements Program, which

ran July 14–16, 2014.

The funds paid for scholarships and operating expenses

for the 2014 camp, which introduced music, arts, and theatre

to 13 local residents with autism.

“For many of them, school settings don’t include

much exposure to the arts,” said Lytle. “We work

with them as individuals and help them find their

strengths. They think, ‘I can do this.’ It’s a great

experience for them.”

During the program, three facilitators in

the arts invited the campers to write poetry, take

part in a play, or use various art materials. More

than a dozen CSU, Chico credential students

assisted throughout the program, gaining

valuable hands-on teaching experience.

Campers stayed in campus residence halls

and showed family members what they

created at the end of the three days.

“The whole focus is really to

give them an opportunity to be in a

campus experience and get them thinking about college,

and preset that in their minds,” Lytle said. “It’s incredible,

the talents and abilities that these individuals bring. The

arts allow for flexibility in presenting and communicating,

and they end up creating amazing rap songs, paintings, and

poetry.”

Jill Cooper, senior business development representative

of Cleanrite-Buildrite’s Chico division, said the company’s

fundraising golf tourney has supported many worthy

causes and nonprofits over the years, including area fire

departments, the Boys and Girls Club, and the Butte Humane

Society.

“Cleanrite-Buildrite has responded to the needs of the

community in emergencies and to those in need for 54 years;

we are committed to continuing for years to come,” Cooper

said.

The Freedom in Elements camp is one of several

summer programs hosted by CSU, Chico’s Autism Clinic,

which is part of the Department of Kinesiology.

Established in 2011, the program focuses on increasing

social skills and developing interpersonal relationships

through movement, theatre, art, drama, and music. Lytle

hopes to offer the program annually, but there have been

years when the funding wasn’t there.

“There’s no natural funding for programs like this,” she

said. “The community piece is huge. As faculty, if you want

to do a service program outside of the classroom, you have to

find a way. Cleanrite-Buildrite made it possible.”

Neo Campagna, left,

and Natalie Cruzen

perform original

music at CSU,

Chico’s Freedom

in Elements

camp for people

with autism in

July. The three-

day program

was made possible

by a $15,000

donation from

Chico’s Cleanrite-

Buildrite.

6


C O L L E G E O F E N G I N E E R I N G , C O M P U T E R S C I E N C E , A N D C O N S T R U C T I O N M A N A G E M E N T

Faculty, alumni lead way in founding scholarship for top students

HILE Department of Electrical and

Computer Engineering Interim Chair

Larry Wear was working at the University

of Washington–Tacoma, a wealthy alum

put up more than $1 million and challenged the faculty

there to match it to create a scholarship endowment

in excess of $2 million for students. Wear and his wife,

Pam, contributed to that fund, resulting in a $12,000

scholarship in their name.

When he returned to CSU, Chico last year, where

he had previously worked for more than 30 years, he

wanted to try to do something similar here. He began

by talking to alumnus Gary Sitton, who was teaching a

special course called Technology Startups that featured

a number of successful entrepreneurs as lecturers. Sitton

thought Wear’s idea was a great one and found several

people who were willing to put up donations of between

$10,000 and $25,000.

“At the end of Gary’s class, we had over $100,000

committed,” Wear said, which included donations from

the Wears and Sitton and his wife, Judy. “Our goal was

to get $250,000 committed from a few people and then

go out and try to challenge the alumni to match that

with the intent of getting $500,000 to fund two four-year

scholarships a year that would pay about $2,500 annually

to each recipient.”

Other contributors to the initial fund include 2014

Distinguished Alumnus Rob Salmon and his wife,

Patricia; 2013 Distinguished Alumnus Mark Fitzpatrick;

and electrical engineering professor emeritus Bill Lane

and his wife, alumna Jeanne.

Fundraising for the initial $250,000 is ongoing. Once

established, the endowment will aim to attract high-

achieving electrical and computer engineering students

to CSU, Chico.

“It’s a merit-based scholarship, so our goal is to

keep attracting the absolute best students to Chico by

offering them something hopefully that they might not

get somewhere else,” Wear said.

“Our graduates can get good jobs. They can get

good-paying jobs. But, more importantly, they can make

major contributions to society. It’s electrical engineers

and computer engineers and computer scientists that

are driving a lot of the innovation that’s keeping our

economy going.”

7

Department of Electrical and Computer Engineering Interim

Chair Larry Wear and his wife, Pam, have helped raise more than

$100,000 for an endowment aimed at attracting high-achieving

electrical and computer engineering students to CSU, Chico.


C O L L E G E O F H U M A N I T I E S A N D F I N E A R T S

Estate gift supports graduate students in western history

8

Graduate student Fan Luo worked with Patti Sprecher, hostess

of Oroville’s historic Chinese temple, in 2013. Her research

was supported by the Clarence McIntosh-William Hutchinson

Memorial Research Scholarship for California and Western

History, which was bolstered recently by an endowment from

the estate of alumnus James Souther.

HEN graduate student Fan Luo began her

master’s program in history at Chico State,

she noticed a gap in the local historical

knowledge base.

While extensive research had been done on the

Chinese communities in Butte County toward the end of

the 19th century, less is known about their presence and

activities in the early 20th century.

A Chinese American student, Luo found this

history gap troubling and decided to focus her thesis on

augmenting the local knowledge of the Chinese during

that time.

Her task was time consuming. She scoured the

archives and collections at county public libraries and

the Butte Historical Society and volunteered her summer

months at Oroville’s historic Chinese temple.

Submitted in fall 2014 for review, her final thesis

focuses on the Chinese community in Oroville from 1900

to 1920, when a number of people remained in the area

despite pervasive anti-Chinese sentiment.

Luo’s efforts were supported in part by the Clarence

McIntosh-William Hutchinson Memorial Research

Scholarship in California and Western History.

Established during the 1990s, the

award was bolstered in 2013 by a

$382,000 endowment from the estate

of James Souther of Alturas, California,

who passed away in 2011.

Souther was a 1966 history alumnus with both un-

dergraduate and graduate degrees and, presumably, a

student of the beloved professors for whom the award is

named. Though he never taught history, as was his inten-

tion, he authored a book in 1968 on a lynching that oc-

curred in Modoc County, Legend Into History: Facts and

Fiction of the Lookout Lynching. (The book is available on

Amazon.com.) After their retirement from his family’s de-

partment store in 1983, he and his wife took a keen inter-

est in western history and traveled often to local histori-

cal sites.

Souther’s lifelong friend, Paul Breshears of Alturas,

says that Souther’s connection to the University and

affinity for higher education prompted him to gift a

portion of his estate to benefit history students.

“He was one of these individuals you could trust

with anything,” Breshears said. “He would be honest,

give you the best information he had, and he would go to

the trouble to research it to get the answer.”

Thanks to his passion and generosity, Souther’s

legacy of research will live on at CSU, Chico. The impact

of his gift will be felt for years by students like Luo, who

expects to receive a hard-earned and well-deserved

master’s degree in December.


C O L L E G E O F N A T U R A L S C I E N C E S

Alumni, industry gifts support students’ chemistry research

9

Biochemistry major Jared Brown, left, works with biochemistry

professor Dan Clark to isolate proteins during the 2014

Chemistry Summer Research Institute. The unique program

is supported by a combination of alumni gifts, industry

partnerships, and agency grants.

ACH summer, when much of campus is

quiet, the third floor of the Physical Sciences

Building teems with activity as a dozen or

so students conduct real-world chemistry

experiments alongside faculty mentors.

These are the scholars of the Chemistry Summer

Research Institute (CSRI), a 10-week program which pairs

faculty members with chemistry students for hands-on

research annually. Together, the student-faculty teams

perform advanced work with practical applications in

industries including agriculture and pharmaceuticals.

In 2014, projects included turning waste from

biodiesel production into a usable product, making a

biodegradable polymer from beet sugar, and testing

metal-based molecules that show promise in slowing

bacteria and cancer growth.

The program, which celebrates its 10th year, offers

valuable hands-on learning opportunities for students,

said Department of Chemistry and Biochemistry Chair

Randy Miller, who manages the program.

“We don’t stand there overseeing them every

minute,” Miller said. “They’re conducting real research

with real applications.”

The program was formed in 2004 through a unique

combination of private gifts, agency grants, and

industry partnerships. Pharmaceutical giant Roche

Palo Alto provided an initial investment of $70,000,

but gifts from chemistry alumni Eugene Reid (’33) and

Marshall Ginter (’55) have supported the program since

then. Recently, alumni have established two new awards

named for CSU, Chico chemistry faculty: the David Ball

Summer Research Award and the Don Alger Summer

Research Award.

The combined funding supports program participants

with a $3,500 stipend for living expenses, materials for

research, and travel expenses to the National Meeting

of the American Chemical Society in San Francisco—a

pinnacle experience for budding chemists.

This year, the program was able to accommodate

three high school students in addition to the Chico State

students.

At the 2014 CSRI, fourth-year biochemistry major

Jared Brown worked on developing a six-week capstone

course on protein isolation for biochemistry majors.

A technique used extensively in the pharmaceutical

industry, isolating proteins in living organisms is

important to understanding human health and disease.

Alongside biochemistry professor Dan Clark, Brown ran

tests and experiments that will eventually be a part of the

course.

He said the program helped him gain skills in

quantification and accuracy and become a better chemist

overall.

“The independent nature of the institute is unique,

and something you don’t find at other universities,”

Brown said.


TH

OU

SA

ND

S

16

14

12

10

8

6

4

2

0 FY 2011–12 FY 2012–13 FY 2013–14

FY 2011–12 FY 2012–13 FY 2013–14

$10

$9

$8

$7

$6

$5

$4

$3

$2

$1

0

MIL

LIO

NS

F Y 2 01 1 –1 2 F Y 2 01 2 –1 3 F Y 2 01 3 –1 4

Cash and In-kind 4,299,497 5,265,932 5,002,264

Pledges 3,265,000 3,605,251 4,546,224

TOTAL $7,564,497 $8,871,183 $9,548,488

G I F T S A N D P L E D G E S

Donor Gifts and Pledges $9,548,488

Total Endowment $52,562,821

D O N O R S

F Y 2 01 1 –1 2 F Y 2 01 2 –1 3 F Y 2 01 3 –1 4

Alumni 7,199 6,727 6,470

Parents 1,97 7 3,210 3,269

Faculty and Staff 217 487 188

Non-Alumni 4,634 3,834 1,514

Students 48 38 59

TOTAL 14,075 14,296 11,500

P H I L A N T H R O P I C H I G H L I G H T S

We have our alumni, parents, and friends

to thank for investing in the future of CSU,

Chico. Together, their gifts and pledges

provided $9.5 million in support.

In 2013–2014, 11,500 individuals made

gifts to our campus. Thanks in part to the

University’s 6,470 alumni donors, giving

increased by 7.6 percent. CSU, Chico’s

alumni and parents were among the most

generous in the CSU system.

Note: Giving data reported in this section

adheres to gift reporting standards and

definitions as specified in the Council

for the Advancement and Support of

Education’s Management Reporting

Standards.

10


*ARNERICH MASSENA INC. IS A WEST COAST-BASED INDEPENDENT INVESTMENT ADVISORY FIRM THAT OFFERS SERVICES TO CORPORATIONS, INSTITUTIONS, STATE AND LOCAL GOVERNMENTS,CHARITABLE ORGANIZATIONS, TRUSTS AND ESTATES, CORPORATE PENSION AND PROFIT-SHARING PLANS, AND PRIVATE CLIENTS.

The University Foundation’s assets include pooled and external endowment funds.

The endowment was valued at $52.6 million as of June 30, 2014, and is overseen by

the University Foundation Board of Governors through its Finance and Investment

Committee. The pooled endowment of $44.8 million is managed by Arnerich Massena,

Inc*. The external endowments totaling $7.8 million are managed in a manner consistent

with the University Foundation’s investment policy.

The Foundation’s investment portfolio is designed to deliver a stable, long-term rate

of return to support student scholarships, academic instruction, program support,

research, and public service projects. The assets are invested in a well-diversified

investment portfolio that balances risk and return while limiting volatility. The

endowment value has increased due to generous donor support and prudent investing

practices.

A S S E T S A N D L I A B I L I T I E S

L I A B I L I T I E S

Accounts payable 564,413

Accrued expenses 54,800

Deferred revenue —

Notes payable 39,000

Liability under trust agreements 2,212,035

Liability for amount held for others 1,853,454

T O TA L L I A B I L I T I E S $ 4 , 7 2 3 , 7 0 2

A SS ET S

Cash and Cash Equivalents 476,389

Net accounts and other receivables 631,560

Prepaid expenses 175,371

Investments 73,984,029

Contributions receivable - net 692,959

Notes receivable 121,850

Buildings and equipment net of accumulated depreciation 260,034

T O TA L A S S E T S $ 7 6 , 3 4 2 , 1 9 2

T O TA L N E T A S S E T S $ 7 1 , 6 1 8 , 4 9 0

11

03–04 04–05 05–06 06–07 07–08 08 –09 09–10 10–11 11–12 12–13 13–14

MIL

LIO

NS

$60

$50

$40

$30

$20

$10

–FY

S T A T E M E N T O F F I N A N C I A L P O S I T I O N

1 Year 3 Year 5 Year 10 Year

14.0% 8.0% 10.1% 6.2%

P O O L E D E N D O W M E N T I N V E S T M E N T P E R F O R M A N C E

Y E A R TOTA L E N D O W M E N T N ET A SS ET S

F Y 2 0 03 – 0 4 $ 2 7, 3 9 9, 3 9 4 $ 4 2 , 2 4 2 , 6 2 0

F Y 2 0 0 4 – 0 5 $ 2 9, 5 7 9, 4 3 2 $ 4 5, 693 , 9 5 0

F Y 2 0 0 5 – 0 6 $3 0, 8 4 0, 0 0 0 $ 6 0, 1 5 2 , 9 6 8

F Y 2 0 0 6 – 0 7 $3 5, 741 , 0 0 0 $ 67, 8 0 9, 74 2

F Y 2 0 0 7– 0 8 $3 4 , 6 5 6 , 0 0 0 $ 67, 9 83 , 02 1

F Y 2 0 0 8 – 0 9 $ 2 8 , 63 4 , 8 6 6 $ 5 7, 67 8 , 6 2 6

F Y 2 0 0 9 –1 0 $3 8 , 9 5 7, 67 8 $ 6 0, 0 9 0, 74 2

F Y 2 01 0 –1 1 $ 4 3 , 02 1 , 0 5 5 $ 6 5, 93 8 , 5 69

F Y 2 01 1 –1 2 $ 4 2 , 1 74 , 3 4 2 $ 6 4 , 2 7 3 , 1 9 9

F Y 2 01 2 –1 3 $ 4 8 , 4 9 8 , 02 4 $ 6 6 , 7 1 3 , 01 9

F Y 2 01 3 –1 4 $ 5 2 , 5 6 2 , 8 2 1 $ 7 1 , 61 8 , 4 9 0

E N D O W M E N T V A L U E A N D N E T A S S E T S

E N D O W M E N T M A R K E T V A L U E


S U M M A R Y O F R E V E N U E A N D E X P E N S E S

Net Investment Gains 45%

Interest and Dividend Income 5%

Donations andContributions 36%

UniversityPrograms 6%

Receipts andOther Income 8%

F Y 2011–12 F Y 2012–13 F Y 2013 –14

Donations and Contributions 4,640,588 7,123,831 4,34 4,732

Interest and Dividend Income 620,501 687,574 537,581

Net Investment Gains -97 7,115 4,17 7,421 5,484,948

University Programs 893,697 766,809 752,082

Receipt s and Other Income 938,354 711,557 979,875

TOTAL REVENUES $6,116,025 $13,467,192 $12 ,099, 218

R E V E N U E F R O M F I N A N C I A L S T A T E M E N T

FY 2011–12 FY 2012–13 FY 2013–14

Academic Support 2,125,687 1,781,231 1,769,618

Development and Fundraising 819,799 694,442 814,352

Facilities and Others 169,993 182,793 293,310

Instruction and Research, and Public Service 712,685 739,159 294,923

Student Grants, Scholarships, and Services 3,319,898 3,360,131 3,594,497

TOTAL EXPENSES $7,148,062 $6,757,756 $6,766,700

Student Grants, Scholarships, and Services 53%

Development and Fundraising 12%

Facilities and Others 4%

Academic Support 26%

Instruction and Research, and Public Service 5%

E X P E N S E S F R O M F I N A N C I A L S T A T E M E N T

F Y 2 0 1 3 – 2 0 1 4 F Y 2 0 1 3 – 2 0 1 4

12


E N D O W M E N T S U M M A R Y

A M O U N T

Scholarship and Awards $28,720,735

Faculty Support $4,464,489

Academic and Program Support $19,37 7,597

J U N E 3 0 , 2 0 1 4 E N D O W M E N T $ 5 2 , 5 6 2 , 8 2 1

Scholarshipsand Awards55%

Academic and Program Support 37%

Faculty Support 8%

E N D O W M E N T B Y P U R P O S E E N D O W M E N T I N V E S T M E N T A L L O C A T I O N

The Foundation’s Investment Policy Statement requires diversification of the

endowment’s investment assets. The chart above shows the University’s allocation for

both pooled and external endowment funds as of June 30, 2014.

A SSETS CL A SS F Y 2013 –14 Current Year%

Ar t /Collec tions 526,550 1%

Balanced Funds 2,318,298 4%

Ca sh, Commodities, and Trea suries 1,397,384 3%

Core Equities 9,767,565 19%

Fixed Income 6,540,758 12%

Foreign 9,317,229 18%

Par tnerships and Private Equity 16,574,739 31%

Real Estate 6,120,298 12%

TOTAL $52 , 562 ,821

Art/Collections 1%

Balanced Funds 4%

Cash, Commodities, and Treasuries 3%

Core Equities 19%Fixed Income 12%

Foreign 18%

Partnerships and Private Equity 31%

Real Estate 12%

F Y 2 0 1 3 – 2 0 1 4 F Y 2 0 1 3 – 2 0 1 4

13

We have audited the accompanying financial statements of The University Foundation,

California State University, Chico (the Foundation), a nonprofit organization, which

comprise the statements of financial position as of June 30, 2014; the related statements

of activities and cash flows for the years then ended; and the related notes to the

financial statements. The prior-year summarized comparative information has been

derived from the Foundation’s 2013 financial statements; in our report dated September

20, 2013, we expressed an unmodified opinion on those financial statements.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these financial

statements in accordance with accounting principles generally accepted in the United

States of America; this includes the design, implementation, and maintenance of

internal control relevant to the preparation and fair presentation of 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 financial statements based on

our audits. We conducted our audits in accordance with auditing standards generally

accepted in the United States of America. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement. An audit involves performing procedures to obtain

audit evidence about the amounts and disclosures in the financial statements. The

procedures selected depend on the auditors’ judgment, including the assessment of

the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant

to the Foundation’s preparation and fair presentation of the 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 Foundation’s 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 financial statements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion, the financial statements referred to above present fairly, in all material

respects, the financial position of the Foundation as of June 30, 2014, and the changes in

its net assets and its cash flows for the year then ended in accordance with accounting

principles generally accepted in the United States of America

EMPHASIS OF A MATTER

As explained in note 1, the financial statements include investments valued at

$25,839,109 (36.08% of net assets) with fair values estimated by the Foundation in the

absence of readily determinable fair values. The Foundation’s estimates are based on

information provided by the fund managers or the general partners.

OTHER MATTER

Our audits were conducted for the purpose of forming an opinion on the financial

statements as a whole. The accompanying financial information listed as supplementary

information in the table of contents is presented for purposes of additional analysis

as required by the California State University Chancellor’s Office and is not a required

part of the financial statements. Such information is the responsibility of management

and was derived from and relates directly to the underlying accounting and other

records used to prepare the financial statements. The information has been subjected

to the auditing procedures applied in the audit of the financial statements and certain

additional procedures, including comparing and reconciling such information directly

to the underlying accounting and other records used to prepare the financial statements

or to the financial statements themselves, and other additional procedures in

accordance with auditing standards generally accepted in the United States of America.

In our opinion, the information is fairly stated in all material respects in relation to the

financial statements as a whole.

Matson and Isom

September 19, 2014

Chico, California

I N D E P E N D E N T A U D I T O R S ’ R E P O R T

14

CALIFORNIA STATE UNIVERSITY, CHICOT H E U N I V E R S I T Y F O U N D A T I O N

400 WEST FIRST STREETCHICO, CA 95929-0156

2013-2014 Annual Report - The University Foundation

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