John Carroll University Faculty Forum Vice President for Finance and Administrative Services Annual Report November 20, 2003

Agenda Financial Presentation Other Updates Q & A Session Richard Mausser – Controller Other Updates Q & A Session Jonathan Ivec – VP for Finance and Administrative Services

Financial Presentation Agenda 0203 Financial Results Overview Investment Profile Major Project Funding Status Selected Ranking Statistics

Statements of Financial Position - Assets (In thousands) May 31, 2003 2002 Assets Cash and cash equivalents $ 4,297 4,809 Accounts receivable, net 2,126 Contributions receivable, net 10,985 11,699 Inventories, prepaids and other assets 1,586 1,434 Student notes receivable, net 5,806 5,887 Deposits with bond trustees 7,313 29,488 Investments, at fair market value 152,101 181,131 Land, buildings and equipment, net 166,768 119,995 Funds held in trust by others 2,992 3,061 Total assets 353,697 359,630 1,849

Endowment Portfolio Market Value

Distribution of Endowment Funds May 31, 2003 Investment Manager

Endowment Fund Investment Profile May 31, 2002 and 2003

Center for Science and Technology Cash Flow Projection - Cumulative * As of 09/15/03

Shula Stadium Project Cash Flow Projection - Cumulative * As of 09/15/03

Statements of Financial Position - Liabilities (In thousands) May 31, 2003 2002 Liabilities and net assets Accounts payable and accrued expenses $ 12,680 10,933 Accrued salaries and wages 5,478 5,042 Deposits and advance payments 2,169 1,540 Deferred income 830 1,236 Long-term debt 82,252 84,587 Refundable federal student loans 2,145 2,166 Total liabilities 105,554 105,504

Projected Long-Term Debt Principal Balances Before 2003 Issue

Projected Long-Term Debt Principal Balances After 2003 Issue

Long-Term Debt as a Percent of Total Endowment

Statements of Financial Position – Net Assets (In thousands) May 31, 2003 2002 Net Assets Unrestricted Available for operations $ 1,069 Designated for specific purposes 29,316 37,790 Endowment 65,553 72,817 Net investment in plant 75,853 50,507 Total unrestricted 171,191 162,183 Temporarily restricted 20,281 38,939 Permanently restricted 56,071 53,004 Total net assets 248,143 254,126 Total liabilities and net assets 353,697 359,630

Statements of Activities – Operating Revenues Increase (In thousands) 2003 2002 (Decrease) Revenues, gains and other support Tuition and fees $ 71,715 68,050 3,665 Less scholarships and grants 24,745 22,439 2,307 46,970 45,611 1,359 Contributions and private grants 6,131 5,446 686 Governmental grants and contracts 4,045 2,554 1,492 Investment return designated for operations 7,355 7,285 69 Interest income 379 757 (378) Auxiliary enterprises 15,213 14,871 348 Other 1,984 1,235 748 Total operating revenues 82,077 77,759 4,318

Operating Revenues Year Ended May 31, 2003 Revenue Sources

Jesuit Institutions Ranked by 2003/04 Tuition, Room and Board - Part 1

Jesuit Institutions Ranked by 2003/04 Tuition, Room and Board - Part 2

Ohio Private Universities Ranked by 2003/04 Tuition and Fees - Part 1

Ohio Private Universities Ranked by 2003/04 Tuition and Fees - Part 2

Statements of Activities – Operating Expenses Increase (In thousands) 2003 2002 (Decrease) Expenses Instructional $ 29,469 $ 27,655 $ 1,814 Sponsored programs 5,694 5,527 167 Library 2,629 2,578 51 Physical plant 5,265 5,292 (27) Administrative and general 14,384 14,341 43 Student activities 2,814 2,915 (101) 11,183 10,488 695 Auxiliary enterprises Depreciation 4,993 4,355 638 Interest 2,710 2,695 15 Total operating expenses 79,141 75,846 3,295 Increase in operating net assets $ 2,936 $ 1,913 $ 1,023

Operating Expenses Year Ended May 31, 2003 Functional Expenses

Statements of Activities – Nonoperating Revenues/ Expenses Increase (In thousands) 2003 2002 (Decrease) Nonoperating revenues and expenses: Contributions to endowments $ 718 1,982 (1,264) Contributions for acquisition of capital assets - net 2,526 3,269 (743) Investment return in excess of amounts designated for operations (12,163) (9,917) (2,246) Increase in nonoperating net assets (8,919) (4,666) (4,253) Increase in net assets (5,983) (2,753) (3,230) Net assets at beginning of year 254,126 256,879 2,753 Net assets at end of year 248,143

Q & A