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2015 Money & TCU: The Financial Report of Texas Christian University

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TCU is in a fantastic financial position, with growing revenues and an endowment valued at just less than $1.5 billion.

TCU's endowment was valued at $1.5 billion as of May 2015
TCU's endowment was valued at $1.5 billion as of May 2015
Barrett Campbell

(Read our reports on TCU's finances for FY2014FY2013 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.
Read the entire 990 filing for FY2015: CLICK HERE