mind spirit service

Reaching the Goal: Impacting the World Through Christian Education.

COLORADO CHRISTIAN
UNIVERSITY
•
Annual Report
Fiscal Year 2010

“A voice of one calling: ‘In the desert prepare the way for the LORD; make straight in the wilderness
a highway for our God. Every valley shall be raised up, every mountain and hill made low; the rough
ground shall become level, the rugged places a plain. And the glory of the LORD will be revealed, and
all mankind together will see it. For the mouth of the LORD has spoken.’” - Isaiah 40:3-5
 Exemplary Academics

Christ-Centered
Community

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 T hank you! By the grace of God, and with your prayers
and financial backing, Colorado Christian University
just concluded a banner fiscal year of rising enrollment,
academic achievement, evangelism, missions, and
great success in athletics and community life.

In a little less than 10 decades, what began as a one-

room school with two students and a single teacher
has become a fully accredited university enrolling
nearly 3,700 undergraduate and graduate students,
with regional centers in six cities, a pleasant and
humble campus, and thousands of alumni around the

MESSAGE FROM THE PRESIDENT

world. Colorado Christian University is an accredited
evangelical university in the Rocky Mountain region and
continues to increase academic standards, enrollment,
and community life while becoming financially strong
and well-prepared for future growth and opportunities.

Colorado Christian University (CCU) cultivates

knowledge and a love of God in a Christ-centered
community of learners and scholars, with an enduring
commitment to the integration of exemplary academics,
spiritual formation, and engagement with the world.
The University holds firmly to traditional values and high
academic standards.

Throughout their education at CCU, students learn to

trust the Bible, live holy lives, and be evangelists - sharing
the love of Christ on campus, in the local community,
and around the world. CCU has a rich history of active
service through student-led mission trips and ministries
that touch the lives of others. Regular chapel services,
Bible studies and discipleship groups, and mentoring
relationships with dedicated faculty and staff members
teach and encourage students as they progress
through their education here.

The University believes this unique combination of

classroom learning, active service, and spiritual
formation creates a transformational experience that
produces graduates who think critically and creatively,
lead with high ethical and professional standards,
embody the character and compassion of Jesus Christ,
and change the world.

Thank you for your faithfulness as we seek to honor

Christ in the church, academia, business, the arts,
government, and many other professions.

We appreciate your encouragement and support more

than you know.

Sincerely,

William L. Armstrong,
President

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 BOARD OF TRUSTEES

Mr. William Armstrong Dr. Toby Cole Mr. Terry Considine Dr. James Dixon

Dr. Margaret Fomer Mrs. Kaye Lynn Fote Mr. Don Harwell Mr. Sam Kimbriel Mr. Harold Krause

Mr. Chick Lee Ms. Terry Leprino Dr. Gerald May Ms. Lee McDowell Mr. Tim McTavish
Vice Chairman

Mrs. Susan Mueller Mr. William Pauls Mr. Walt Rakowich Dr. Dale Schafer Mr. Donald Siecke

Dr. Donald Sweeting Dr. John Turner Mr. William White Dr. Robert Woodson
Chairman

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 MISSION AND VISION

VISION
We envision graduates who think critically and creatively, lead with high
ethical and professional standards, embody the character and compassion
of Jesus Christ, and who thereby are prepared to impact the world.

MISSION
Colorado Christian University cultivates knowledge and love of God in a
Christ-centered community of learners and scholars, with an enduring
commitment to the integration of exemplary academics, spiritual formation, GLOBAL MISSIONARY INFLUENCE
and engagement with the world. The CCU2theWorld program offers
students opportunities each year to
balance their Christian education with
Christ-centered community
missionary service and evangelism in
Our community of interdependent students, faculty, and staff seeks to honor locations worldwide. Across the last
and obey Jesus Christ, who is present in Spirit and speaks in Scripture, and decade, over 100 short-term, student-
to advance God’s purposes in the lives of every member. led teams have gone to more than 36
countries, serving through relational
Exemplary academics evangelism, work projects, sports
Our undergraduate and graduate curricula integrate faith and learning in ministry, teaching, and more. During
a scholarly environment that fosters critical and creative thinking, academic the 2009-10 school year CCU teams
excellence, and professional competence. visited 3 U.S. states and 10 foreign
countries.
Spiritual formation
Our academic and student-development programs cultivate a deep and
enduring faith that affirms the authority of Scripture and embraces Christ as
the authentic center of life.

Engagement with the world

Our students experience and engage the world in ways that prepare leaders
to serve and transform their professions, churches, and communities.

STUDENT GETS DEGREE AFTER 30

YEARS, TRAUMATIC INJURY
In 2010, Bill Inman received his
bachelor’s diploma from CCU after
an educational climb of more than
30 years. In 1981, then a student at
CU-Boulder, he was in a car accident
from which surgeons had to remove a
third of his brain, leaving him severely
mentally and physically handicapped.
In the following three decades, Bill
fought to regain his speech and
analytical and motor skills, taking one
college course at a time, eventually
coming to CCU. He’s now writing a
book and wants to influence others as
a public speaker on the lecture circuit.

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 STRATEGIC OBJECTIVES

STRATEGIC OBJECTIVES
Colorado Christian University’s Strategic Objectives were adopted by the
CCU board of trustees to serve as a guiding compass for the University.
They direct the implementation of CCU’s long-established mission and
vision, and provide context for the University’s first priority, an enduring
commitment to Jesus Christ and His Kingdom. The Strategic Objectives
provide a point of convergence for every member of the CCU community
and for every aspect of life at CCU, from teaching and learning in the
classroom to living with and serving others.

COLORADO CHRISTIAN UNIVERSITY SHALL:

GROWTH FOR COLLEGE OF ADULT
AND GRADUATE STUDIES
CCU is home to nearly 3,700 students,
and nearly two-thirds are enrolled in
the College of Adult and Graduate
Studies. Last March, the College’s
Northern Colorado Center relocated to
a larger facility with improved learning
technology, a change reflective of
wide growth among in-seat and
online programs in the College. Since
2007, its Western Colorado Center has
also moved to a prominent new site,
facilities opened in Northglenn and
the Denver Tech Center, offerings to
local military personnel expanded,
and several nursing programs were
launched.
• Honor Christ and share the love of Christ on campus and around
the world;
• Teach students to trust the Bible, live holy lives, and be evangelists;
• Be a magnet for outstanding students and prepare them for positions
of significant leadership in the church, business, government, and
professions by offering an excellent education in strategic disciplines;
• Teach students how to learn;
• Teach students how to think for themselves;
• Teach students how to speak and write clearly and effectively;
• Give students significant opportunities to serve our Lord while they are
at CCU and to help them develop a lifetime habit of such service;
• Impact our culture in support of traditional family values, sanctity of
life, compassion for the poor, biblical view of human nature, limited
government, personal freedom, free markets, natural law, original intent
of the Constitution, and Western civilization;

• Be seekers of truth;

• Debunk “spent ideas” and those who traffic in them;

• Ask God to multiply our time and ability to the glory of His great name;

• Be a servant of the church; and

• Become a great university.

SCHOOL OF MUSIC WELCOMES
WORLD-CLASS BECHSTEIN PIANO
In October the School of Music held
a special concert to celebrate the
contributions of many donors and
a generous matching grant by the
Rockley Family Foundation, which
made possible the purchase of a
brand new Bechstein 9’2” concert
grand, one of the finest pianos made.
Along with the new hardwood stage
it sits on, the piano is a tremendous
improvement for the performing arts
at CCU. -6-
 FINANCIAL STATEMENTS
Evangelical Council for
Financial Accountability

Condensed Financial Statements

Fiscal Year Ended June 30,

Condensed Balance Sheet 2010 % 2009 %

Assets
Cash & Cash Equivalents $10,571,462 20% $8,135,467 16%
Accounts Receivable 1,861,926 4% 2,084,609 4%
Investments 21,725,952 42% 22,027,232 43%
Property and Equipment, Net 14,499,024 28% 15,684,925 31%
Other Assets 3,522,094 7% 3,074,040 6%
Total Assets $52,180,458 100% $51,006,273 100%

Liabilities
Accounts Payable and Other $1,739,261 3% $2,323,555 5% FATBOYS:
Deferred Revenue 2,849,011 5% 2,718,622 5%
A DECADE WITH THE HOMELESS
Bonds Payable 10,000,000 19% 10,000,000 20%
In the late ’90s, CCU student Clint Hill
Other 1,142,008 2% 900,020 2%
started a campus mountain-biking
Total Liabilities $15,730,280 30% $15,942,197 31%
club that frequently did urban rides in

downtown Denver. Conscience soon
Net Assets
interrupted their sessions as they rode
Unrestricted $32,922,179 63% $33,054,061 65%
past numerous homeless people, and
Restricted 3,527,999 7% 2,010,015 4%
before long the group morphed into
Total Net Assets 36,450,178 70% 35,064,076 69%
FatBoys, named after the fat tires on
Total Liabilities and Net Assets $52,180,458 100% $51,006,273 100%
mountain bikes, and started peddling

food, clothing, and spiritual care along

those same streets. These days bikes
Condensed Statement of Activities
aren’t always involved, but FatBoys is
one of CCU’s most long-standing and
Operating Revenue
widely attended student-led ministries.
Tuition Revenue $33,666,096 94% $32,470,946 97%
Scholarships and Grants (6,565,639) -18% (5,488,516) -16%
Auxiliary Services 4,582,213 13% 4,266,613 13%
Contributions 2,472,339 7% 987,649 3%
Other 1,759,859 5% 1,190,164 4%
Total Revenue $35,914,868 100% $33,426,856 100%

Operating Expenses
Instruction $12,350,236 37% $11,405,545 36%
Academic Support 3,914,819 12% 4,200,490 13%
Student Services 9,834,881 29% 9,321,955 29%
Auxiliary Enterprises 4,230,263 13% 4,000,756 12%
Total Program Expenses $30,330,199 90% $28,928,746 90%

Support Activities
General and Administrative $2,418,185 7% $2,364,260 7%
Fund Raising 823,376 2% 765,589 2%
Public Service 248,311 1% 67,202 0% WESTERN CONSERVATIVE
Total Support Expenses $3,489,872 10% $3,197,051 10% SUMMIT DRAWS 700 AND NEWS
HEADLINES
Total Operating Expenses $33,820,071 100% $32,125,797 100% CCU’s public-policy think tank,
Change in Net Assets from Operations 2,094,797 1,301,059 Centennial Institute, led by former
Investment Mark-to-Market, and Colorado senator John Andrews,
Other Non-Operating Net (708,695) (3,917,779) garnered headlines in The Denver Post
Change in Net Assets $1,386,102 $(2,616,720) and other media in July during its first-
ever Western Conservative Summit.
The annual gathering of conservative
leaders drew a public crowd of over
700 and featured guest speakers U.S.
Rep. Michele Bachmann, retired Lt.
Gen. Jerry Boykin, columnist Michelle
Malkin, and political analyst Dick
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 FINANCIAL STATEMENTS

Summary of Financial Results

Fiscal Year Ended June 30, 2010

Chart A Balance-Sheet Highlights

Operating Revenue Analysis
Five Years Ended June 30, 2010 The condensed financial statements on page seven are summarized from
40
the complete set of financial statements for Colorado Christian University, as
audited by our independent, certified public accountants. The balance sheet
35
as of June 30, 2010, reflects a strong financial condition, as evidenced by the
following key metrics:
30

• CCU has a total debt-to-total-assets ratio of 30%,

25
which indicates a conservative borrowing strategy and a large net
equity. The primary borrowings of the University are a $10-million tax-
20
exempt bond issuance, which provides a reasonable interest rate.
15
• CCU has 62% of all its assets in cash, cash equivalents, and investments.
This high liquidity is appropriate in uncertain economic circumstances,
10
and again reflects the conservative fiduciary management of the assets.

• The University has managed its accounts receivable, primarily tuition

5

receivable, to result in an 11% decrease from the previous fiscal-year

-

2006 2007 2008 2009 2010

end. This decrease is directly attributable to concentrated efforts to work
with students at every step of the billing process to avoid delinquencies
Net Tuition Auxiliary Services Contributions Other
wherever possible.

• Total equity of the University has increased nearly $1.4 million from the
Chart B previous fiscal year, and as a result is in good financial health to meet
the growth and financial demands of future years.
Gross Tuition and Discount Analysis
Five Years Ended June 30, 2010
40 25.0%
Revenue Highlights
Millions

35
30 20.0%
For several years, net income from operations for Colorado Christian
25 University has been positive or “in the black.” These favorable financial results
20 15.0% are intentional. CCU budgets operations carefully and every department
15 and area of the University manages to the budget. This conservative fiscal
10 10.0%
management has occurred in an environment of growth and change, which
5
- 5.0%
has built a solid foundation for the future.
(5)
(10) 0.0% Operating revenue for the past five years, as summarized from the respective
2006 2007 2008 2009 2010
year’s audit report is reflected on Chart A.
Gross Tuition Discount Percent Discount to Tuition

For the fiscal year ended June 30, 2010, gross tuition revenue totaled
approximately $33.7 million, and scholarships and grants totaled $6.6 million
against this amount, for a net of $27.1 million. This overall discount rate of
19.5% recognizes CCU’s continuing commitment to academic excellence,
including raising the average combined SAT scores (reading, writing, math) of
incoming freshmen to 1623*. This average rate of SAT scores has improved
dramatically over the last few years.

The details of gross tuition revenue and discount rates for the last five fiscal
years are reflected on Chart B.

*Data provided by the Noel-Levitz ERMS Study - December, 2009; based

on a 2,400-point SAT scale factoring reading, writing, and mathematics.
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 FINANCIAL STATEMENTS

Expenses Highlights Chart C

Historically, Colorado Christian University has placed a significant emphasis
on proper stewardship of all funds—recognizing that it is often through Summary of Expenses
personal sacrifice on the part of the student and/or his or her family that Fiscal Year Ended June 30, 2010
each student is able to attend. As a result of this conservative financial
management, 90% of every dollar is spent directly in education- Academic
Support
related expenses, and only 7% of each dollar is spent on general and 12%
administrative (G&A) expenses. This low number in G&A is intentional and
provides maximum learning efficiency for all tuition revenues. A breakdown
of all expenses, as reflected in the 2010 audit report, is reflected on Chart C. Instruction
37%
Student
This low G&A percentage has been held low for many years, as reflected Public Services
on Chart D. Service 29%
1%

Fund Raising
2%
Net Revenue
Auxiliary
As a nonprofit as defined under section 501(c)(3) of the Internal Revenue General and Enterprises
Administrative
Code,many of the financing and operating vehicles available to commercial 7%
12%
enterprises are not available to Colorado Christian University. For example,
since there are no stockholders, there is no ability to raise funds through
stock or other equity offerings. As a result, prudent financial management Chart D
requires careful planning to ensure that any excess of earnings over
Operating Expenses Analysis
expenses in a given year are available for reinvestment into the future of Five Years Ended June 30, 2010

the University. 40

Accordingly, the change in net assets from operations is a very important

35

measurement tool to discern the University’s ability to thrive into the future. 30
Management of operations during turbulent financial circumstances,
such as the recession that began in late 2008, requires special diligence 25

to ensure that resources will be available for the future. In the prior fiscal
year which ended June 30, 2009, CCU—like many other institutions— 20

experienced a large mark-to-market write-down of the investment portfolio.

This also occurred in the fiscal year ended June 30, 2010, but to a lesser 15

extent. These mark-to-market adjustments do not affect cash flow of the

University, nor do they affect the net income from operations, since they are 10

“below the line.” However, there is a negative impact on the final bottom
line, as evidenced on Chart E (page 10). 5

CCU managed effectively throughout the recent recession. While there -

2006 2007 2008 2009 2010

was some affect on the bottom line in fiscal year 2009, neither cash flow nor
net operating revenue were impacted, and the stage was set for successful Education Auxiliary General
& Admin
Fund
Raising
Public
Service

operations in fiscal year 2010.

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 FINANCIAL STATEMENTS

Chart E
Net Operating Revene vs. Net Revenue
Five Years Ended June 30, 2010
4

(1)
THE FUND FOR BECKMAN
SCHOLARS (2)
In 2009 CCU established The Fund
for Beckman Scholars to provide (3)
financial assistance to traditional 2006 2007 2008 2009 2010
undergraduate students. The award
honors Dr. L. David Beckman’s stalwart Change in Net Assets Change in
leadership and service as multi-term from Operations Net Assets
president of CCU and heritage school
Rockmont College during some of
the University’s most lean times. While
leader, scholar, pastor, and teacher all
describe his long career, words hardly
do justice to how deeply his legacy is
rooted in the CCU community. Outlook for the Future
As of June 30, 2010, there were adequate liquid assets on hand and a
significant equity-to-total-assets position. Operations are largely supported by
tuition and fees, and there is not a reliance on other, more volatile income
sources such as endowments or investment earnings. All financial audits have
been completed with no major audit findings, and the general economic
forecast seems to be improving. Colorado Christian University is financially
poised for significant future growth—and to God alone be the glory!

COUGARS WIN
THIRD-CONSECUTIVE RMAC
SPORTSMANSHIP CUP
Director of Athletics Darren Richie
was in Colorado Springs last June
receiving CCU’s third-consecutive
sportsmanship award from the Rocky
Mountain Athletic Conference. The
RMAC is one of the largest NCAA
Division-II conferences in the nation.
CCU, though one of its smallest
member schools, was recognized
as setting a consistent model for
character-based competition among
athletes, coaches, athletics staff, and
fans. - 10 -
 Spiritual
Formation

Engaging the World

- 11 -
 SUPPORT CCU

Office of Development
8787 W. Alameda Ave.
Lakewood, CO 80226
www.ccu.edu/Support
303.963.3330

• Student Scholarships: The Fund for Beckman Scholars was established in honor of
President Emeritus Dr. L. David Beckman. It is a tribute to his legacy of scholastic
excellence, leadership, and heartfelt care for students. As donations are received
toward The Fund, the total amount of gifts contributed during each calendar year
will be awarded as scholarships to eligible students for use during the following
academic year.

• Gift-Matching: Many companies encourage philanthropy by matching their

employees’ gifts to colleges and universities such as CCU. Most match the gift dollar
for dollar, and some will even double or triple the amount. Participating companies
may also recognize donations made by retirees and/or spouses.

• Estate-Planning Gifts: Be a legacy! Through a Charitable Gift Annuity or by including

CCU in your will or as a beneficiary, you will provide a lasting impact that will
change students’ lives for many years to come.

For more information on giving to Colorado Christian University,

please contact the Office of Development at 303.963.3330
or visit our Web site at:

www.ccu.edu/support