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(Read our reports on TCU's finances for FY2014, FY2013 and FY2012)
Well, here we are again folks: Another financial report for TCU. Every year when I receive my Form 990 filing in the mail, I always open the package with anticipation knowing that yes, it's true, TCU has all of the money.
And this years report, covering the fiscal year of 2014-2015, shows once again that TCU is a money making machine.
With record revenues, a growing endowment, and new projects on the horizon (See: Medical School), TCU couldn't be better positioned to survive the likely storm coming towards higher education. As they say, only the strong survive, and TCU has over $2 billion in assets in their storm shelter.
We also have some interesting compensation data to share this year, including the second to last year of Trent Johnson's career at TCU (WE GAVE HIM A RAISE) as well as new salary data for then new Offensive Coordinator, Doug Meacham. Just a reminder, while the financial data below covers TCU's fiscal year (June - May), the compensation data covers the 2014 calendar year.
So, here you go, the FY2015 TCU Financial Report.
Revenues & Expenses
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Revenue | $701,404,157 | $637,593,857 | $549,758,910 | $441,642,790 |
| Expenses | $549,516,191 | $483,096,425 | $452,917,777 | $445,774,825 |
| Profit | $151,887,966 | $154,497,432 | $96,841,133 | -$4,132,035 |
Revenue grew 10% while expenses were up 13%... As you will see below, the majority of that expense growth came from scholarships, salaries, and some other oddities like the travel budget.
Revenues
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Tuition & Fees | $371,675,418 | $349,288,369 | $324,021,197 | $295,513,724 |
| Contributions, Grants, & Gifts | $89,546,203 | $88,125,905 | $70,469,133 | $57,591,543 |
| Net Gain (Securities) | $84,265,168 | $53,345,722 | $47,503,921 | -$17,006,143 |
| Athletics & Campus Rec | $38,841,814 | $31,275,446 | $25,819,320 | $11,337,701 |
| Royalties | $32,840,010 | $35,309,121 | $20,000,914 | $22,909,729 |
| Residential Administration | $29,208,841 | $28,097,477 | $26,204,950 | $25,251,638 |
| Dining Services | $18,578,852 | $17,928,982 | $16,415,785 | $16,046,587 |
| Investment Income | $17,757,646 | $17,584,982 | $3,442,675 | $13,884,772 |
| Other | $12,530,900 | $11,222,465 | $10,921,990 | $11,032,074 |
| Bookstore | $1,293,792 | $1,199,587 | $1,256,555 | $1,357,569 |
| Rental Income | $825,214 | $993,082 | $795,634 | $723,992 |
Tuition growth was as expected, 6%, based on tuition increases. Contributions held steady while the net gain from investments was up almost 58%... I am not sure if that signals a change in investment management policy, or if it is a one year anomaly.
Expenses
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Salaries and Wages | $165,553,582 | $155,973,730 | $147,630,210 | $138,295,140 |
| Grants/Scholarships | $126,005,167 | $110,794,219 | $99,705,544 | $91,482,695 |
| Depreciation | $44,697,223 | $41,262,456 | $37,646,790 | $34,533,477 |
| Employee Benefits | $27,268,516 | $25,076,026 | $25,806,802 | $22,849,746 |
| Other | $25,038,241 | $21,650,172 | $19,312,869 | $17,073,049 |
| Investment Mngt Fees | $21,468,867 | |||
| Travel (Flights & Rentals) | $19,033,743 | $16,105,171 | $16,027,238 | $14,521,612 |
| Occupancy (Hotels) | $18,043,112 | $16,682,272 | $15,791,804 | $17,704,508 |
| Office Expenses | $17,574,646 | $15,642,580 | $14,768,694 | $14,912,066 |
| Food Services | $15,110,293 | $14,860,185 | $13,723,988 | $13,142,758 |
| Pension Plan Accruals | $14,953,759 | $13,960,978 | $15,837,052 | $31,254,161 |
| Interest | $12,920,107 | $12,081,994 | $8,868,652 | $10,663,156 |
| Payroll Taxes | $10,999,116 | $10,579,053 | $9,845,152 | $9,181,171 |
| Compensation for Officers, Directors, Trustees |
$7,621,556 | $6,790,584 | $6,276,397 | $5,727,890 |
| Dues & Subscriptions | $6,234,401 | $5,930,707 | $5,560,710 | $5,647,396 |
| Advertising/Marketing | $2,838,389 | $2,047,065 | $1,760,553 | $1,608,285 |
| Information Technology | $2,759,972 | $2,824,207 | $2,424,869 | $2,366,005 |
| Insurance | $2,390,354 | $2,344,515 | $2,110,938 | $1,999,187 |
| Instructional, Research | $1,605,483 | |||
| Conferences & Conventions | $980,416 | $994,309 | $1,048,655 | $861,102 |
| Legal | $943,971 | $670,199 | $564,636 | $665,782 |
| Accounting | $455,960 | $382,540 | $685,179 | $564,528 |
| Professional Fundraising | $261,970 | $52,064 | $136,266 | $138,567 |
Nothing significantly interesting for me here, besides two new expense categories that the university had previously not disclosed: Investment management fees and Institutional/Research. I believe the investment management fees indicate fees paid to external providers of hedge funds and other investment tools TCU owns. Based off of a endowment value of $1.5 billion, that gives TCU an external expense ratio of 1.4%.
Balance Sheet
Cash/Receivables
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Cash | $8,785,949 | $3,486,602 | $3,398,963 | $11,799,319 |
| Savings | $12,874,632 | $63,965,365 | $8,854,069 | $38,772,248 |
| Accounts Receivable (net) | $25,332,059 | $28,784,057 | $25,417,472 | $24,329,631 |
| Pledges/Grants Receivable (net) | $61,732,177 | $54,773,167 | $44,122,419 | $65,181,207 |
So a roughly $50mm draw down in short-term savings... I wonder if that has to do with the recent investment in the new TCU medical school? (See: TCU Invests $50mm in new medical school)
Assets & Liabilities
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Total Assets | $2,823,981,380 | $2,606,377,356 | $2,301,635,724 | $2,085,935,294 |
| Accounts Payable | $77,356,769 | $66,342,308 | $59,768,006 | $66,895,486 |
| Deferred Revenue | $27,254,431 | $24,433,490 | $25,280,101 | $21,774,621 |
| Bond Liabilities | $519,844,772 | $475,925,771 | $398,442,583 | $394,312,090 |
| Other Liabilities | $96,219,257 | $78,286,294 | $78,334,124 | $133,595,180 |
| Total Net Assets | $2,103,306,151 | $1,961,389,493 | $1,739,810,910 | $1,469,357,917 |
Endowment Funds
| FY2015 | FY2014 | FY2013 | FY2012 | |
| Beginning of Year Balance | $1,393,241,318 | $1,256,029,327 | $1,110,867,981 | $1,191,899,686 |
| Contributions | $16,447,929 | $14,406,762 | $17,494,442 | $11,024,191 |
| Net Investment Gain/Loss | $133,486,273 | $179,244,836 | $184,348,844 | -$35,526,500 |
| End of Year Balance | $1,486,003,520 | $1,393,241,318 | $1,256,029,327 | $1,110,867,981 |
At $1.5b, TCU's endowment is roughly 60th nationally just ahead of SMU. It grew 6% last year, outpacing a flat S&P 500.
Other Notes
- TCU reported 5,761 paid employees, up from 5,601 in FY2014, 5,416 in FY2013 and 5,236 in FY2012.
- Of TCU's more than five thousand employees, 339 are paid $100,000 or more per year. That is up from 303 in FY2014, 276 in FY2013 and 250 in FY2012.
- In addition to employees making $100k or more, TCU also paid 87 separate contractors more than $100k in FY2015. The largest were Linbeck Group ($43 million), HC Beck ($32 million), Sodexo ($15 million), Austin Commercial ($10 million), and Hahnfeld Hoffer Stanford ($5 million).
- As part of its $126 million in grants and scholarships, TCU allocated those funds in the following manner: Undergraduate Financial Aid ($99 million), Graduate Financial Aid ($14 million), Grants in Aid ($3 million), Stipends ($4 million), and Tuition Equalization Grants ($4 million).
- TCU took out a $120 million loan in 2010 to finance construction of Amon G. Carter Stadium; $55 million was retired during FY2015.
Compensation
Gary Patterson (Head Football Coach)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $3,488,901 | $3,489,284 | $2,987,885 | $2,587,557 |
| Bonuses | $72,000 | $150,000 | $184,000 | |
| Total Compensation | $4,014,723 | $3,940,026 | $4,008,150 | $3,120,760 |
Victor Boschini, Jr. (Chancellor)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $1,042,233 | $1,021,744 | $930,077 | $791,051 |
| Bonuses | $100,000 | |||
| Total Compensation | $1,754,540 | $1,742,196 | $1,486,299 | $1,234,823 |
James Hille (Chief Investment Officer)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $541,413 | $521,840 | $510,235 | $482,831 |
| Bonuses | $160,312 | $122,889 | $95,438 | $173,756 |
| Total Compensation | $1,619,361 | $1,114,351 | $1,401,973 | $935,815 |
Trent Johnson (Head Men's Basketball Coach)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $1,843,907 | $1,644,022 | $1,096,870* | |
| Bonuses | ||||
| Total Compensation | $2,037,834 | $1,672,345 | $2,213,784 |
Chris Del Conte (Athletic Director)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $552,880 | $534,244 | $509,435 | $408,546 |
| Bonuses | $32,500 | $133,250 | $141,772 | $80,666 |
| Total Compensation | $1,092,681 | $830,853 | $811,527 | $632,213 |
Jim Schlossnagle (Head Baseball Coach)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $427,735 | $374,065 | $335,275 | $298,309 |
| Bonuses | $57,500 | $2,500 | $32,500 | $55,410 |
| Total Compensation | $846,253 | $480,093 | $466,303 | $452,472 |
Doug Meacham (Co-Offensive Coordinator)
| CY2014 | CY2013 | CY2012 | CY2011 | |
| Base Pay | $367,158 | |||
| Bonuses | $62,500 | |||
| Total Compensation | $548,457 |
Compensation Notes
- For most employees in the 990 filing, total compensation is a combination of the following: Base, bonuses, deferred comp from earlier years (to encourage retention), other compensation (country clubs, private jets, etc.), and nontaxable benefits.
- Private/charter jet travel was provided to the wives of Victor Boschini, Gary Patterson, Jim Schlossnagle, and Trent Johnson.
- Memberships to Colonial were provided to Victor Boschini, Chris Del Conte, Donald Whelan, James HIlle, Trent Johnson, Jim Schlossnagle, Nowell Donovan, Gary Patterson, and Doug Meacham.
- Chris Del Conte received a $17,500 bonus for meeting performance based contract stipulations and a $15,000 bonus for significant contributions to TCU.
- Doug Meacham received a $62,500 contract bonus.
- Gary Patterson received a $72,000 bonus for performance based contract stipulations. (This was the Peach Bowl season)
- Jim Schlossnagle received a $57,500 bonus for performance based contract stipulations.