Saint Joseph's College 2017 Audit

SINGLE AUDIT REPORT
June 30, 2017 and 2016

SAINT JOSEPH’S COLLEGE
Rensselaer, Indiana
SINGLE AUDIT REPORT

June 30, 2017 and 2016
CONTENTS
INDEPENDENT AUDITOR’S REPORT .................................................................................................... 1
FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION ...................................................................................... 3
STATEMENTS OF ACTIVITIES ........................................................................................................ 4
STATEMENTS OF CASH FLOWS .................................................................................................... 6
NOTES TO FINANCIAL STATEMENTS ........................................................................................... 7
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ............................................................ 27
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS................................. 28
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS ............................................................................................. 29
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE ............................................ 31
SCHEDULE OF FINDINGS AND QUESTIONED COSTS ....................................................................... 33

Crowe Horwath LLP
Independent Member Crowe Horwath International
INDEPENDENT AUDITOR’S REPORT
The Board of Trustees

Saint Joseph’s College
Rensselaer, Indiana
Report on the Financial Statements
We have audited the accompanying financial statements of Saint Joseph’s College (the “College”), which
comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of
activities and cash flows for the years then ended, and the related notes to the 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.
Auditor’s 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 and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. 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 auditor’s 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 entity’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 entity’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.
(Continued)
1.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Saint Joseph’s College as of June 30, 2017 and 2016, and the changes in its net assets and its
cash flows for the years then ended in accordance with accounting principles generally accepted in the
United States of America.
Emphasis of Matter Regarding Going Concern
The accompanying financial statements have been prepared assuming that the College will continue as a
going concern. As discussed in Note 13 to the financial statements, the College has experienced significant
financial difficulties leading to debt covenant violations and an unrestricted net deficit position that raises
substantial doubt about its ability to continue as a going concern. Management’s plans in regard to this
matter are also described in Note 13. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.
Other Matter
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The
schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations (CFR)
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, is presented for purposes of additional analysis 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
other 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.
Report on Other Legal and Regulatory Requirements
In accordance with Government Auditing Standards, we have also issued our report dated September 29,
2017, on our consideration of Saint Joseph’s College’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Saint Joseph’s College’s internal control
over financial reporting and compliance.
Crowe Horwath LLP
Chicago, Illinois
September 29, 2017
2.
STATEMENTS OF FINANCIAL POSITION
June 30, 2017 and 2016
2017 2016
ASSETS
Cash and cash equivalents $ 2,351,500 $ 4,009,836
Accounts receivable (less allowance for doubtful
accounts: 2017 - $463,000 and 2016 - $137,000) 301,979 1,002,103
Inventories and supplies 4,870 82,040
Prepaid expenses and other assets 110,445 65,309
Estate gifts receivable 1,252,401 526,000
Contributions receivable, net (Note 2) 154,250 232,247
Investments (Note 3) 79,959,341 87,345,756
Loans receivable (Note 5) 1,887,366 1,774,778
Land, buildings, and equipment, net (Note 6) 2,143,593 22,479,409
Trusts held by others (Note 4) 691,275 646,918
$ 88,857,020 $ 118,164,396
LIABILITIES AND NET ASSETS

Liabilities
Accounts payable and accrued expenses $ 3,076,686 $ 653,288
Accrued wages and other benefits 1,014,274 817,386
Deferred revenue 1,026,100 1,352,231
Short-term line of credit payable (Note 7) 2,000,000 2,000,000
Notes and mortgages payable (Note 8) 24,738,290 25,370,069
Annuities (Note 9) 101,593 106,566
U.S. Government advances (Note 5) 1,949,636 1,800,199
Asset retirement obligations (Note 10) 900,000 900,000
34,806,579 32,999,739
Commitments and Contingencies (Note 14)
Net assets
Unrestricted
Undesignated (1,327,987) 380,691
Board-designated endowment 2,604,063 2,624,483
Net investment in land, buildings and equipment (25,494,697) (5,790,660)
Total unrestricted (24,218,621) (2,785,486)
Temporarily restricted 3,057,280 5,488,685
Permanently restricted 75,211,782 82,461,458
54,050,441 85,164,657
$ 88,857,020 $ 118,164,396
See accompanying notes to financial statements.
3.
STATEMENTS OF ACTIVITIES
Year ended June 30, 2017, with comparative 2016 totals
-------------------------------------2017 ----------------------------------------
Temporarily Permanently 2016
Unrestricted Restricted Restricted Total Total
Tuition, fees and other support:
Tuition and fees $ 23,116,172 $ - $ - $ 23,116,172 $ 23,777,164
Less institutional aid 13,884,465 - - 13,884,465 14,060,819
Less campus based federal aid 136,336 - - 136,336 143,224
Net tuition and fees 9,095,371 - - 9,095,371 9,573,121
Auxiliary enterprises:
Dining hall and student center 2,957,655 - - 2,957,655 3,249,199
Residence halls 3,224,632 - - 3,224,632 3,210,358
College store - - - - 172,929
Contributions, grants, and bequests 2,147,619 394,589 - 2,542,208 2,661,895
Government grants 764,948 - - 764,948 658,865
Investment income 4,661,609 467,731 - 5,129,340 3,999,394
Net income from College farms 2,169,278 - - 2,169,278 2,674,437
Other income 287,923 - - 287,923 215,064
Total other support 16,213,664 862,320 - 17,075,984 16,842,141
Net assets released from restrictions 1,145,037 (1,145,037) - - -
Total tuition, fees and other support 26,454,072 (282,717) - 26,171,355 26,415,262
Expense
Instructional 7,604,662 - - 7,604,662 7,152,951
Student services 5,375,021 - - 5,375,021 5,553,207
Student institutional services 469,465 - - 469,465 324,559
Dining hall and student center 2,277,854 - - 2,277,854 2,208,370
Residence halls 3,253,906 - - 3,253,906 3,244,290
College store 69,983 - - 69,983 248,776
Athletics 3,656,305 - - 3,656,305 3,748,097
Library 651,809 - - 651,809 692,981
Institutional advancement 636,897 - - 636,897 659,352
Administrative 3,309,277 - - 3,309,277 2,966,226
Total expenses 27,305,179 - - 27,305,179 26,798,809
Changes in net assets from operations before

impairment loss (851,107) (282,717) - (1,133,824) (383,547)
Loss on impairment of land, buildings,

and equipment (20,561,609) - - (20,561,609) -
Changes in net assets from operations (21,412,716) (282,717) - (21,695,433) (383,547)
Non-operating income (loss)

Investment return in excess of amounts
designated for current operations (4,639,706) (820,156) - (5,459,862) (5,355,083)
Contributions, grants and bequests - - 81,246 81,246 103,345
Loss on permanently restricted farm land
held as investment - - (3,999,100) (3,999,100) (4,670,704)
Gain (loss) on trusts held by others - 2,829 39,670 42,499 (41,599)
Change in donor restrictions 4,619,287 (1,247,795) (3,371,492) - -
Unrealized loss on contribution receivable - (83,566) - (83,566) (4,331,886)
(20,419) (2,148,688) (7,249,676) (9,418,783) (14,295,927)
Changes in net assets (21,433,135) (2,431,405) (7,249,676) (31,114,216) (14,679,474)
Net assets at beginning of year (2,785,486) 5,488,685 82,461,458 85,164,657 99,844,131
Net assets at end of year $ (24,218,621) $ 3,057,280 $ 75,211,782 $ 54,050,441 $ 85,164,657
4.
STATEMENT OF ACTIVITIES
Year ended June 30, 2016
-------------------------------------- 2016 ----------------------------------------

Temporarily Permanently
Unrestricted Restricted Restricted Total
Tuition, fees and other support:
Tuition and fees $ 23,777,164 $ - $ - $ 23,777,164
Less institutional aid 14,060,819 - - 14,060,819
Less campus based federal aid 143,224 - - 143,224
Net tuition and fees 9,573,121 - - 9,573,121
Dining hall and student center 3,249,199 - - 3,249,199
Residence halls 3,210,358 - - 3,210,358
College store 172,929 - - 172,929
Contributions, grants, and bequests 2,273,844 388,051 - 2,661,895
Government grants 658,865 - - 658,865
Investment income 3,198,792 800,602 - 3,999,394
Net income from College farms 2,674,437 - - 2,674,437
Other income 215,064 - - 215,064
Total other support 15,653,488 1,188,653 - 16,842,141
Net assets released from restrictions 1,644,341 (1,644,341) - -
Total tuition, fees and other support 26,870,950 (455,688) - 26,415,262
Expenses
Instructional 7,152,951 - - 7,152,951
Student services 5,553,207 - - 5,553,207
Student institutional services 324,559 - - 324,559
Dining hall and student center 2,208,370 - - 2,208,370
Residence halls 3,244,290 - - 3,244,290
College store 248,776 - - 248,776
Athletics 3,748,097 - - 3,748,097
Library 692,981 - - 692,981
Institutional advancement 659,352 - - 659,352
Administrative 2,966,226 - - 2,966,226
Total expenses 26,798,809 - - 26,798,809
Changes in net assets from operations 72,141 (455,688) - (383,547)
Non-operating income (loss)

Investment return in excess of amounts
designated for current operations (3,543,591) (1,811,492) - (5,355,083)
Contributions, grants and bequests - - 103,345 103,345
Loss on permanently restricted farm land
held as investment - - (4,670,704) (4,670,704)
Loss on trusts held by others - (5,259) (36,340) (41,599)
Loss on asset retirement obligation - - - -
Unrealized loss on contribution receivable - (4,331,886) - (4,331,886)
(3,543,591) (6,148,637) (4,603,699) (14,295,927)
Changes in net assets (3,471,450) (6,604,325) (4,603,699) (14,679,474)
Net assets at beginning of year 685,964 12,093,010 87,065,157 99,844,131
Net assets at end of year $ (2,785,486) $ 5,488,685 $ 82,461,458 $ 85,164,657
5.
STATEMENTS OF CASH FLOWS
Years ended June 30, 2017 and 2016
2017 2016
Cash flows from operating activities
Change in net assets $ (31,114,216) $ (14,679,474)
Adjustments to reconcile change in net assets
to net cash from operating activities
Depreciation and amortization 1,949,394 1,856,197
Change in provision for bad debts 326,029 57,913
Unrealized loss on contribution receivable 83,566 4,331,866
Loss on investments 1,056,889 1,763,425
Loss on permanently restricted farm land held as investment 3,999,100 4,670,704
Loss on trusts held by others (44,357) 48,191
Contributions restricted for permanent investment (81,246) (103,345)
Loss on impairment of land, buildings, and equipment 20,561,609 -
Change in assets and liabilities
Accounts receivable 374,095 (640,764)
Estate gifts receivable (726,401) -
Inventories and supplies 77,170 (7,296)
Prepaid expenses and other assets (45,136) 4,443
Contributions receivable (5,569) 106,218
Accounts payable and accrued expenses 1,124,525 (168,368)
Accrued wages and other benefits 196,888 84,753
Deferred revenue (326,131) (2,478)
Net cash from operating activities (2,593,791) (2,678,015)
Cash flows from investing activities

Proceeds from sale of investments 2,572,689 6,005,276
Purchase of investments (242,263) (480,664)
Loans receivable (112,588) (8,811)
Purchase of land, building, and equipment (862,398) (2,133,505)
Net cash from investing activities 1,355,440 3,382,296
Cash flows from financing activities

Contributions restricted for permanent investment 81,246 103,345
Change in annuity liabilities (4,973) (9,492)
U.S. Government advances 149,437 29,322
Proceeds from line of credit - 2,000,000
Proceeds from new borrowings on notes and mortgages payable - 600,000
Payments on line of credit - (3,000,000)
Principal payments on notes and mortgages payable (645,695) (1,129,578)
Net cash from financing activities (419,985) (1,406,403)
Net change in cash and cash equivalents (1,658,336) (702,122)
Cash and cash equivalents, beginning of year 4,009,836 4,711,958
Cash and cash equivalents, end of year $ 2,351,500 $ 4,009,836
Supplemental disclosure of cash flow information:

Cash paid during the year for interest $ 756,536 $ 1,194,137
Supplemental disclosure of non-cash transactions:

Capitalized assets included in accounts payable 1,298,873 -
6.
NOTES TO FINANCIAL STATEMENTS
June 30, 2017 and 2016
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Organization: Saint Joseph’s College (the College), located in Rensselaer, Indiana, is an independent,
Catholic, primarily liberal arts college for men and women. In 1889, Saint Joseph’s College was
incorporated under the laws of the State of Indiana with the right to grant scholastic degrees. The College
enrolls students primarily from the Midwest. Refer to Note 13 for additional discussion regarding
management’s plans for future operations.
Financial Statement Presentation: The financial statements of the College have been prepared on the
accrual basis of accounting in conformity with accounting principles generally accepted in the United States
of America (U.S. GAAP). The College reports information regarding its financial position and activities in
three classes of net assets: unrestricted, temporarily restricted, and permanently restricted, based upon
the existence or absence of donor-imposed restrictions as follows:
• Unrestricted - net assets that are not subject to donor-imposed restrictions.
• Temporarily Restricted - net assets that are subject to donor-imposed restrictions that will be met
either by actions of the College or the passage of time.
• Permanently Restricted - net assets that are subject to donor-imposed restrictions to be

maintained permanently by the College. Generally, the donors of these assets permit the College
to use all or part of the income earned on related investments for scholarships, education, or other
College operations.
Operations: Operating results in the statements of activities reflect all transactions increasing or decreasing
unrestricted net assets except those items associated with long-term investment including reinvestment of
realized and unrealized gains and losses on investments in excess of endowment payout, gains and losses
on permanently restricted farm land held as investment, change in the value of trusts held by others,
unrealized loss associated with the valuation of a contribution receivable, loss on asset retirement
obligation, other losses, and capital contributions for endowments to be maintained in perpetuity.
Net Assets Released From Restriction: Net assets are released from restriction by incurring expenses
satisfying the restricted purpose or by occurrence of other events. Net assets released from restriction
consist primarily of expenses incurred for scholarships and other donor specified projects.
Revenue: Revenue is reported as an increase in unrestricted net assets unless use of the related assets
is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets.
Gains and losses on investments and other assets or liabilities are reported as increases or decreases in
unrestricted net assets unless their use is restricted by explicit donor stipulation or law. Expirations of
temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the
stipulated time period has elapsed) are reported as reclassifications between applicable classes of net
assets.
Private gifts, including unconditional pledges, are recognized in the period received. Conditional pledges
are not recognized until the conditions on which they depend are substantially met. Pledges to be received
after one year are discounted at an appropriate rate commensurate with the risks involved. Amortization of
the discount is recorded as additional contribution revenue in accordance with donor-imposed restrictions,
if any, on the contributions. An allowance for doubtful pledges receivable is provided for specific gifts
expected not to be received based upon the judgment of the College’s administration considering such
factors as the creditworthiness of the donor, prior collection history, type of contribution, and nature of fund-
raising activity.
(Continued)
7.
June 30, 2017 and 2016
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
The College’s policy is to treat all temporarily restricted gifts received, for which all donor restrictions are
met within the same fiscal year, as restricted contributions with a corresponding release from restrictions.
Contributions are recorded at fair value at the time of recognition.
Revenue from tuition is recognized during the semester in which the student attends class. Revenue from
government grant and contract agreements is recognized as it is earned through expenditure in accordance
with the agreement. Deferred revenue consists of tuition and fees paid in advance of the second session
of the summer semester and farm lease income.
Tuition Discounts: Tuition discounts represent scholarships provided to students to reduce the student’s
overall cost for tuition and various other fees. These discounts are given to students in the course of
providing educational services and the amounts of discounts, as well as the individual recipients, are
decided by the College. The College utilizes earnings on investments restricted for tuition discounting or
scholarships, federal and state grants, and other sources to finance a portion of the tuition discounts. Tuition
discounts are reported as a reduction of tuition income as the College does not receive any goods or
services in exchange for the discount.
Contributed Services: Contributed services represent the value of services contributed by certain priests
and brothers. The financial statements reflect the value of these contributions less actual living costs
attributable to priests and brothers. The particular departments which receive their services are charged in
order to reasonably reflect operating costs. Gross contributed services revenue (not reduced by actual living
costs) and total contributed services expenses allocated to the particular departments was approximately
$154,000 and $130,400 for the years ended June 30, 2017 and 2016, respectively.
Cash and Cash Equivalents: Cash equivalents are defined as short term, highly liquid investments readily
convertible to known amounts of cash with an original maturity of less than three months. The College
maintains its primary checking account at a local bank which is insured by an agency of the federal
government up to $250,000. Cash and cash equivalents allocated to the investment portfolio are reported
as investments.
Accounts Receivable: Accounts receivable primarily represents the balance of student tuition and charges
owed to the College. Each month a service charge is levied on all unpaid balances. The service charge is
computed by a “periodic rate” of 1.50% per month, which is an annual percentage rate of 18% applied to
the previous balance. Accounts receivable also includes amounts owed to the College related to a food
service contract for the dining hall.
Allowance for Doubtful Accounts: The allowance for doubtful accounts is determined by management
based on the College’s historical losses, specific student circumstances and general economic conditions.
Periodically, management reviews accounts receivable and records an allowance for specific students
based on current circumstances and charges off the receivable against the allowance when all attempts to
collect the receivable have failed.
Estate Gifts Receivable: The College is periodically notified of beneficial interests in estates. Estate gifts
are recorded as receivables when the College becomes identified as a legal recipient and amounts can be
reasonably estimated.
Inventories and Supplies: Inventories and supplies are stated at the lower of cost (first-in, first-out basis)
or fair value.
(Continued)
8.
June 30, 2017 and 2016
Investments: Investments are recorded at fair value. Investments in marketable securities with readily
determinable fair values and all investments in debt securities are valued at their estimated fair values
based upon quoted market prices where available, or quoted market prices of comparable instruments,
where prices are not available. The fair value of farm land was determined by management using
appraisals, quoted market prices for similar assets or other market data, such as the annual Purdue
Agricultural Economics Report, which is a report that summarizes the results of an annual survey of
numerous professionals knowledgeable about Indiana’s farmland market. This report serves to provide
information regarding farmland values and cash rent. Unrealized gains and losses are included in the
change in the respective net asset class.
Net Income from College Farms: The farmland generates income on an annual basis through payments
received on certain rental leases granted to farmers and other parties for the use of the land. The cash rent
leases run through February 2018 with rental payments made biannually on March 1 and November 1 of
each year. The rental payments are subject to change on an annual basis based upon prevailing market
factors in existence at that time. The amount of the rental revenues earned for the years ended June 30,
2017 and 2016, were $2,429,850 and $2,955,899, respectively. These amounts are recorded on the
Statement of Activities net of related expenses such as property taxes, farm management fees and repair
costs. These expenses amounted to $260,572 and $281,462 for the years ended June 30, 2017 and 2016,
respectively.
Land, Building, and Equipment: Building improvements and equipment, including capitalized interest, are
stated at cost at date of acquisition or fair value at date of gift. Additions and improvements in excess of
$5,000 are capitalized; expenditures for routine maintenance are charged to operations. Depreciation is
provided on the straight-line basis over the assets estimated useful lives as follows:
Buildings and improvements 15-40 years

Land improvements 15-20 years
Furniture and equipment 5-10 years
Vehicles 3-7 years
Long-lived assets, such as buildings and improvements, furniture and equipment, are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the
carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the
asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is
recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
Refer to Note 6.
Trusts Held by Others: The College has beneficial interests in various charitable remainder trusts and
perpetual trusts, all of which are currently held and administered by others. The College’s portion of the fair
value of the underlying assets of the trust is recorded in either temporarily or permanently restricted net
assets depending on the nature of restrictions on the use of the trust assets specified by the donor. The net
of future realized and unrealized gains (losses) will be recorded as changes in net assets under the
appropriate classification as they occur.
Loan Issuance Costs: Costs associated with the issuance of long-term debt are amortized over the life of
the loan using the effective interest method. The net unamortized portion is included in notes and mortgages
payable in the statements of financial position.
(Continued)
9.
June 30, 2017 and 2016
Use of Estimates and Assumptions: Management must make estimates and assumptions in preparing
financial statements in conformity with U.S. GAAP that affect the amounts reported therein and the
disclosures provided. These estimates and assumptions may change in the future and future results could
differ.
Advertising: The College expenses advertising costs once they are incurred. During the years ended
June 30, 2017 and 2016, advertising cost totaled approximately $35,000 and $57,000, respectively.
Income Taxes: The College has received a determination letter from the Internal Revenue Service
indicating that the College is a tax-exempt organization as provided in Section 501(c)(3) of the Internal
Revenue Code of 1986 and, except for taxes pertaining to unrelated business income, is exempt from
federal and state income taxes. No provision has been made for income taxes in the accompanying
financial statements, as the College has had no significant unrelated business income.
U.S. GAAP prescribes recognition thresholds and measurement attributes for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a tax return. Tax benefits
will be recognized only if the tax position is more-likely-than-not sustained in a tax examination, with a tax
examination being presumed to occur. The amount recognized will be the largest amount of tax benefit that
is greater than 50% likely of being realized on examination. For tax positions not meeting the more-likely-
than-not test, no tax benefit will be recorded. Management has concluded that they are unaware of any tax
benefits or liabilities to be recognized at June 30, 2017 and 2016.
The College is no longer subject to examination by U.S. federal taxing authorities for fiscal years before
2014 and for all state income taxes through fiscal year 2014. The College does not expect the total amount
of unrecognized tax benefits to significantly change in the next 12 months.
The College would recognize interest and penalties related to unrecognized tax benefits in interest and
income tax expense, respectively. The College has no amounts accrued for interest or penalties as of
June 30, 2017 and 2016.
Institutional Advancement Expenditures: Institutional advancement expenses represent costs identified by

management for fund raising activities.
Allocations of Expenses: The majority of expenses can generally be directly identified with the programs
or supporting service to which they relate and are charged, accordingly. Other expenses have been
allocated among program and supporting service classifications on a basis determined by the College’s
management.
Recently Adopted Guidance: In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest
(Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs to simplify presentation of debt
issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in
the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt
accounts. The amendments in this ASU are effective for fiscal years beginning after December 15,
2015. The College has implemented this ASU for the years ended June 30, 2017 and 2016. Accordingly,
the presentation of bond issuance costs are presented as a direct deduction from the carrying amount of
notes and mortgages payable on the statement of financial position. See Note 8 for further disclosure.
(Continued)
10.
June 30, 2017 and 2016
In January 2016, the FASB issued (ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10):
Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU affects not-for-profit
entities by eliminating the requirement for not-for-profit entities to disclose certain information about the fair
value of financial instruments not recorded at fair value and simplify the impairment assessment of an equity
security that does not have a readily determinable fair value. This ASU is effective for not-for-profit entities
for fiscal years beginning after December 15, 2018. The College has implemented this ASU as of June 30,
2017 and 2016, and is therefore no longer required to provide the fair value disclosures that are measured
and carried at cost or amortized cost.
Recent Accounting Guidance: In May 2014, the FASB issued (ASU) 2014-09, Revenue from Contracts
with Customers: Topic 606. This ASU affects any entity that either enters into contracts with customers to
transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those
contracts are within the scope of other standards. This ASU will supersede the revenue recognition
requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle
of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. The amendments in this ASU are effective retrospectively for
fiscal years beginning after December 15, 2017. The College has not yet implemented this ASU and is in
the process of assessing the effect on the College’s financial statements.
In February 2016, the FASB issued (ASU) 2016-02, Leases. This ASU affects any entity that enters into a
lease, with some specified scope exemptions. The main difference between previous GAAP and this ASU
is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating
leases under previous GAAP. Nonpublic business entities should apply the amendments for fiscal years
beginning after December 15, 2019 (i.e., January 1, 2020, for a calendar year entity). The College has not
yet implemented this ASU and is in the process of assessing the effect on the College’s financial
statements.
Reclassifications: Certain amounts have been reclassified in the 2016 financial statements to conform to
the 2017 presentation. These reclassifications had no effect on the change in net assets or net assets.
Subsequent Events: Management has performed an analysis of the activities and transactions subsequent
to June 30, 2017, to determine the need for any adjustments to and/or disclosures within the financial
statements for the year ended June 30, 2016. Management has performed their analysis of subsequent
events through September 29, 2017, the date the financial statements were available to be issued. Refer
to Note 13 for additional disclosure regarding the College’s suspension of operations.
(Continued)
11.
June 30, 2017 and 2016
NOTE 2 - CONTRIBUTIONS RECEIVABLE, NET
Contributions receivable include unconditional promises to give from various donors. Unconditional
promises to give that are expected to be collected in future years are recorded at the present value of their
estimated future cash flows. This discount is computed using a rate commensurate with the risks included
in the year the gift is made applicable to the years in which the promises are anticipated to be received.
Contributions receivable are due as follows:
2017 2016
Amounts due in:
Less than one year $ 242,750 $ 139,923
One to five years - 104,257
242,750 244,180
Present value discount - (1,933)
Allowance for uncollectible pledges (88,500) (10,000)
$ 154,250 $ 232,247
As of June 30, 2017 and 2016, the College had outstanding “intentions”, which are not recorded in
contributions receivable, to donate for the 21st Century Campaign. These amounts totaled $840,000 as of
June 30, 2016. Due to the suspension of operations described more fully in Note 13 and a current
fundraising focus on the Saint Joseph’s Phoenix Project, these amounts were no longer considered
collectible as of June 30, 2017. Refer to Note 13 for additional information regarding the Saint Joseph’s
Phoenix Project.
NOTE 3 - INVESTMENTS
Investments consist of the following:

2017 2016
Cash and money-market funds $ 632,930 $ 267,755

Bonds 5,678,250 2,774,244
Stocks and equity mutual funds 142,797 5,180,549
Cash surrender value of life insurance policies 64,040 550,123
Farm land 73,441,324 78,573,085
$ 79,959,341 $ 87,345,756
Investment income has been recorded net of related investment expenses. Investment expenses were
approximately $32,000 and $87,000 for the years ended June 30, 2017 and 2016, respectively.
(Continued)
12.
June 30, 2017 and 2016
NOTE 4 - FAIR VALUE OF INVESTMENTS AND TRUSTS HELD BY OTHERS
U.S. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability
(an exit price) in the College’s principal or most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date.
U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes
three levels of inputs that may be used to measure fair value:
Level 1: Quoted prices for identical assets or liabilities in active markets that the entity
has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices
for similar assets or liabilities; quoted prices in markets that are not active; or other inputs
that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs shall reflect the reporting entity’s own assumptions
about the assumptions that market participants would use in pricing an asset or liability.
In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the
fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value
measurement in the hierarchy.
Inputs and Valuation Techniques:
The fair values of certain equity securities (common stocks and equity mutual funds) that are readily
marketable are determined by obtaining quoted prices on nationally recognized securities exchanges.
Bonds are valued using matrix pricing, which is a mathematical technique widely used in the industry to
value debt securities without relying exclusively on quoted prices for the specific securities but rather by
relying on the securities’ relationship to other benchmark quoted securities.
The fair value of farm land was determined by management using appraisals or quoted market prices for
similar assets or other market report data, such as the annual Purdue Agricultural Economics Report, which
is a report that summarizes the results of an annual survey of numerous professionals knowledgeable about
Indiana’s farmland market. This report serves to provide information regarding farmland values and cash
rent. Although valued using quoted market prices for similar assets or other market report data, a substantial
portion of the College’s farm land has been permanently restricted by the donor, and may not be sold.
The fair value of the trusts held by others was determined based upon the underlying trust assets at
June 30, 2017 and 2016. This valuation method has been estimated to represent the present value of future
distributed income. The College is able to compare the valuation model inputs and results to widely
available published industry data for reasonableness, but due to the illiquidity of the asset, it has been
considered to be valued using Level 3 inputs.
(Continued)
13.
June 30, 2017 and 2016
NOTE 4 - FAIR VALUE OF INVESTMENTS AND TRUSTS HELD BY OTHERS (Continued)
Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a
recurring basis at June 30, 2017, are summarized below:
Level 1 Level 2 Level 3 Total

Assets:
Investments:
Cash and money-market
funds $ - $ 632,930 $ - $ 632,930
Bonds:
U.S. Government Agency - 2,422,801 - 2,422,801
International
Government Agency - 910,964 - 910,964
U.S. Treasury - 2,344,485 - 2,344,485
Total bonds - 5,678,250 - 5,678,250
Stocks:
Health care 29,784 - - 29,784
Information technology 49,889 - - 49,889
Total stocks 79,673 - - 79,673
Equity mutual funds 63,124 - - 63,124

Cash surrender value of
life insurance policies - 64,040 - 64,040
Farm land - 6,983,000 66,458,324 73,441,324
Total investments $ 142,797 $ 13,358,220 $ 66,458,324 $ 79,959,341
Trusts held by others $ - $ - $ 691,275 $ 691,275
(Continued)
14.
June 30, 2017 and 2016
Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a
recurring basis at June 30, 2016, are summarized below:
Level 1 Level 2 Level 3 Total

Assets:
Investments:
Cash and money-market
funds $ - $ 267,755 $ - $ 267,755
Bonds:
U.S. Government Agency - 136,346 - 136,346
International
Government Agency - 40,034 - 40,034
U.S. Treasury - 525,490 - 525,490
Residential mortgage
backed securities - 281,776 - 281,776
Commercial mortgage
backed securities - 29,249 - 29,249
Corporate bonds - 1,761,349 - 1,761,349
Total bonds - 2,774,244 - 2,774,244
Stocks:
Consumer discretionary 543,803 - - 543,803
Consumer staples 310,645 - - 310,645
Energy 483,424 - - 483,424
Financials 936,202 - - 936,202
Health care 451,553 - - 451,553
Industrials 448,778 - - 448,778
Information technology 585,833 - - 585,833
Materials 322,736 - - 322,736
Telecommunications 165,836 - - 165,836
Utilities 59,937 - - 59,937
Total stocks 4,308,747 - - 4,308,747
Equity mutual funds 871,802 - - 871,802

Cash surrender value of
life insurance policies - 550,123 - 550,123
Farm land - 8,115,661 70,457,424 78,573,085
Total investments $ 5,180,549 $ 11,707,783 $ 70,457,424 $ 87,345,756
Trusts held by others $ - $ - $ 646,918 $ 646,918
As of June 30, 2017 and 2016, there were no significant transfers in and out of Level 1 and Level 2 fair
value measurements.
(Continued)
15.
June 30, 2017 and 2016
The table below presents a reconciliation and statement of activities classification of gains (losses) for all
investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for
the years ended June 30, 2017 and 2016:
Trusts Held
By Others Farm Land
Balance, June 30, 2015 $ 695,109 $ 75,128,128
Unrealized and realized losses (48,191) (4,670,704)
Balance, June 30, 2016 646,918 70,457,424
Unrealized and realized losses 44,357 (3,999,100)
Balance, June 30, 2017 $ 691,275 $ 66,458,324
All unrealized losses shown in the table above relate to investments still held by the College at June 30,
2017 and 2016.
NOTE 5 - LOANS RECEIVABLE
The College makes uncollateralized loans to students based upon financial need, and these loans are
funded through the Perkins federal revolving loan program. As of June 30, 2017 and 2016, the College has
outstanding loans receivable, of $1,887,366 and $1,774,778. Amounts due under the Perkins Loan program
are guaranteed by the Federal government, and, therefore, no reserves are placed on any past due
balances under the program.
The availability of funds for loans under the program is dependent on reimbursements to the pool from
repayments on outstanding loans. Funds advanced by the Federal government of $1,949,636 and
$1,800,199 and, respectively, are ultimately refundable to the government and are classified as liabilities in
the statement of financial position. Outstanding loans cancelled under the program result in a reduction of
the funds available for loan and a decrease in the liability to the government.
At June 30, 2017 and 2016, the following amounts were past due under the Perkins Loan program:
1 – 270 270 Days - 2–5 5+ Total

Days 2 Years Years Years Past
June 30, Past Due Past Due Past Due Past Due Due
2017 $ 65,188 $ 49,195 $ 93,963 $ 94,456 $ 302,802

2016 96,878 76,308 70,500 77,647 321,333
(Continued)
16.
June 30, 2017 and 2016
NOTE 6 - LAND, BUILDINGS, AND EQUIPMENT
Investment in educational properties consists of the following:
2017 2016
Land and improvements $ 2,012,796 $ 2,004,507

Buildings and improvements 49,185,996 47,249,965
Furniture and equipment 5,984,992 5,768,041
Vehicles 282,222 282,222
57,466,006 55,304,735
Less: Accumulated depreciation and loss on impairment 55,322,413 32,825,326
$ 2,143,593 $ 22,479,409
There has been no value assigned to the portion of the original land contributed in 1889, upon which the
campus is located. Such amount would be immaterial to the financial statements based upon property
values at that time. Depreciation expense was $1,935,478 and $1,841,778 for the years ended June 30,
2017 and 2016, respectively.
Due to the suspension of operations described in Note 13, an impairment analysis was performed on the
land, buildings, and equipment and an impairment adjustment was recorded to reduce the carrying value
to the estimated fair value as determined by liquidation prices for furniture and equipment and by an
appraisal for the campus. The appraisal utilized the sales comparison approach (level 2) to value the
campus.
NOTE 7 - SHORT-TERM LINE OF CREDIT PAYABLE
On June 24, 2015, the College had a $1,000,000 short term loan with Farm Credit Mid-America to fund
certain infrastructure projects over the summer months. Interest was payable monthly and was calculated
as the London Interbank Offered Rate (LIBOR) plus 3.35% (3.55% on June 30, 2015). The loan principal
was paid in full on December 1, 2015.
The College has a $2,000,000 short-term line of credit payable with Farm Credit Mid-America due March 1,
2016. Interest was payable monthly at a variable interest rate of LIBOR plus 3.8% with a lower promotional
rate of 2.99% for the first year. The line of credit was collateralized by the campus as well as certain other
properties held as an investment. This line of credit was extended on September 8, 2016. The extended
line of credit was due March 1, 2017. Interest is payable monthly beginning on November 1, 2016 at a rate
of 4.25%. The line of credit is collateralized by campus real estate. This line of credit was not extended and
was not paid upon maturity. The default interest rate adds 2% on to the applicable interest rate in effect as
noted above. The effective interest rates were 4.35% as of June 30, 2016 and 6.56% as of June 30, 2017.
Pursuant to these loan agreements, the College is subject to certain financial covenants measured semi-
annually and other requirements. Subsequent to June 30, 2015, the College was in violation of its covenant
to maintain a liquidity ratio of not less than 0.55 to 1.0 and obtained a waiver through June 30, 2016. As of
December 31, 2016 and June 30, 2017, management believes that the College violated its covenant to
maintain a liquidity ratio of not less than 0.55 to 1.0. The College has not obtained a waiver of this covenant
violation. Refer to Note 13 for additional disclosure regarding the College’s suspension of operations.
(Continued)
17.
June 30, 2017 and 2016
NOTE 8 - NOTES AND MORTGAGES PAYABLE
Notes and mortgage payable consist of the following:

2017 2016
Mortgage Payable to Demotte State Bank pursuant to a loan

agreement dated May 30, 2013. Principal and fixed interest of
4.80% are payable monthly in the amount of $175,265 through
June 1, 2033. Demotte State Bank was functioning as the
mortgage servicer until the College ceased payment on its
outstanding debt obligations when it executed its option to turn
over servicing rights to Farm Credit Mid-America. The credit risk
for this indebtedness belongs to Farm Credit Mid-America.
Pursuant to the loan agreement, the College is subject to certain
financial covenants and other requirements. The mortgage is
collateralized by the campus as well as certain other properties
held as an investment. $ 23,850,811 $ 24,401,005
Note Payable to Farm Credit Mid-America pursuant to a loan

agreement dated August 6, 2015. The loan principal in the
amount of $600,000 is payable in full on July 1, 2016. Interest
was payable monthly and is calculated as the London Interbank
Offered Rate (LIBOR) plus 3.35% and was 3.92% at June 30,
2016. This loan was extended through September 8, 2016 at
which point it was refinanced over a period of ten years maturing
on October 1, 2026. This loan is payable in monthly installments
of principal and fixed interest of 4.85% totaling $6,320.
Pursuant to the loan agreement, the College is subject to certain
financial covenants and other requirements. The mortgage is
collateralized by the campus as well as certain other properties
held as an investment. 588,203 600,000
Note Payable to Farm Credit Mid-America pursuant to a loan

agreement dated November 10, 2014. Principal and fixed
interest of 5.25% are payable monthly through December 1,
2024. An interest rate conversion occurred on July 1, 2016
lowering the interest rate to 4.9%. Pursuant to the loan
agreement, the College is subject to certain financial covenants
and other requirements. The mortgage is collateralized by the
campus as well as certain other properties held as an
investment. 421,741 455,813
3% mortgage note to Federal Reserve in conjunction with the

U.S. Department of Education, due January 27, 2017, principal
and interest payable in fifty-six semi-annual installments of
$19,732, collateralized by real estate and endowment income in
an amount sufficient to provide for debt service. - 38,593
(Continued)
18.
June 30, 2017 and 2016
NOTE 8 - NOTES AND MORTGAGES PAYABLE (Continued)
2017 2016
Leases on lighting fixtures and classroom furniture from

Marlin Business Bank and Steelcase Financial, respectively,
principal and interest payable monthly in installments of
$1,242 and $2,438, respectively. $ - $ 11,039
Total debt 24,860,755 25,506,450

Less: Bond issuance costs, net (122,465) (136,381)
$ 24,738,290 $ 25,370,069
As noted above, the College is subject to certain financial covenants measured semi-annually and other
requirements pursuant to its loan agreements. Subsequent to the year ended June 30 2015, the College
violated its covenant to maintain a liquidity ratio of not less than 0.55 to 1.0. Management had obtained a
waiver of this covenant from its bank through June 30, 2016. As of December 31, 2016 and June 30, 2017,
management believes that the College has violated its covenant to maintain a liquidity ratio of not less than
0.55 to 1.0. The College has not obtained a waiver of this covenant violation. In February 2017, the College
ceased payment of both interest and principal on the notes and mortgages to Farm Credit Mid-America and
Demotte State Bank described previously. Due to the payment cessation, interest rates on the August 6,
2015 note and the November 10, 2014 note converted to the default rate of interest which are the rates per
the loan agreement plus 2%. Refer to Note 13 for additional disclosure regarding the College’s suspension
of operations.
Total interest costs for all borrowings for 2017 and 2016, were $1,321,049 and $1,192,592, respectively.
NOTE 9 - ANNUITIES
The College has received amounts from various individuals under agreements which require the College
to pay donors varying amounts during their lifetime. The actuarial present value of annuity contracts
payable, discounted at varying rates, aggregated $101,593 and $106,566 at June 30, 2017 and 2016,
respectively.
NOTE 10 - ASSET RETIREMENT OBLIGATIONS
U.S. GAAP clarifies that conditional asset retirement obligations (AROs) meet the definition of liabilities and
should be recognized when incurred if their fair values can be reasonably estimated. The College has
recorded a conditional ARO liability related to the estimated cost of asbestos remediation for its campus
buildings. The liability, recorded at June 30, 2017 and 2016, was approximately $900,000.
The resulting conditional AROs are primarily related to the encapsulated structural fireproofing that is not
subject to abatement unless the buildings are demolished and non-encapsulated asbestos that the College
would remediate only if it performed major renovations of certain existing buildings. This makes developing
a reasonable estimate of their fair values difficult. The College will continue to assess its ability to better
estimate fair values for asbestos remediation at each future reporting date.
(Continued)
19.
June 30, 2017 and 2016
NOTE 11 - RETIREMENT PLAN
The College has a defined contribution retirement plan, under IRC Section 403(b), which covers all
employees who are at least age 26 and who have completed one year of service or comparable experience
in their area of employment. The plan required contributions equal to 3% of eligible employees’ regular
salaries as of June 30, 2017 and 2016, respectively. Contributions to this plan aggregated $215,999 and
$208,703 for the years ended June 30, 2017 and 2016, respectively.
NOTE 12 - RESTRICTIONS ON NET ASSETS AND ENDOWMENT COMPOSITION
The restrictions on net assets at the end of the year relate to funds given to the College for specific purposes
and loans and scholarships to students from private sources. Cash and promises to give, as well as interest
earned on the investment of such support, are restricted according to the timing and nature of the donor’s
restrictions.
Temporarily restricted net assets consist of the following:
2017 2016
Beneficial interest in remainder trusts $ 34,909 $ 32,081

Contributions receivable 154,250 232,247
Unappropriated endowment earnings 2,174,069 4,242,019
Scholarships and other donor specified projects 694,052 982,338
$ 3,057,280 $ 5,488,685
Permanently restricted net assets consist of endowment funds, permanently restricted farm land, and
certain outside trusts to be held in perpetuity, the income from which is expendable to support the
educational purpose of the College and student scholarship programs.
The College maintains endowment and similar funds which permits the pooling of assets for long-term
investment. The endowment, which totals $13,531,590 and $18,870,536 at June 30, 2017 and 2016,
respectively, is composed of permanently restricted net assets, temporarily restricted net assets and Board-
designated net assets. These Board-designated net assets total $2,604,063 (19.2%) and $2,624,483
(13.9%) at June 30, 2017 and 2016, respectively. Approximately $6,900,000 and $8,100,000 of endowment
assets at June 30, 2017 and 2016, respectively, are held as collateral for notes and mortgages payable as
disclosed in Note 8.
The endowment is managed by a professional investment management firm with oversight provided by the
College’s management and the Board’s Finance Committee. The College’s endowment primarily consists
of funds held at the College’s custodian (approximately $5,942,000 and $8,188,000 as of June 30, 2017
and 2016, respectively) as well as farm land (approximately $6,983,000 and $8,116,000 as of June 30,
2017 and 2016, respectively). Its endowment includes both donor-restricted endowment funds and funds
designated by the Board of Trustees to function as endowments. In addition, the endowment also includes
several beneficial interests in perpetual trusts that are administered by outside parties. Net assets
associated with endowment funds, including funds designated by the Board of Trustees to function as
endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.
(Continued)
20.
June 30, 2017 and 2016
NOTE 12 - RESTRICTIONS ON NET ASSETS AND ENDOWMENT COMPOSITION (Continued)
Endowment net asset composition by type of fund as of June 30, 2017:
Donor restricted
endowment funds $ - $ 2,174,069 $ 8,753,458 $ 10,927,527
Board-designated funds 2,604,063 - - 2,604,063
Total funds $ 2,604,063 $ 2,174,069 $ 8,753,458 $ 13,531,590
Endowment net asset composition by type of fund as of June 30, 2016:
Donor restricted
endowment funds $ - $ 4,242,019 $ 12,004,034 $ 16,246,053
Board-designated funds 2,624,483 - - 2,624,483
Total funds $ 2,624,483 $ 4,242,019 $ 12,004,034 $ 18,870,536
(Continued)
21.
June 30, 2017 and 2016
Changes in endowment net assets for years ended June 30, 2017 and 2016, are as follows:
Endowment net assets,

June 30, 2015 $ 6,167,981 $ 6,053,511 $ 11,937,029 $ 24,158,521
Investment income 42,321 252,835 - 295,156

Net realized and unrealized
losses (451,809) (1,263,725) (36,340) (1,751,874)
Contributions - - 103,345 103,345
Appropriation of endowment
assets for expenditures (3,134,010) (800,602) - (3,934,612)

June 30, 2016 2,624,483 4,242,019 12,004,034 18,870,536
Investment income 34,618 137,203 - 171,821

Net realized and unrealized
gains (losses) (84,871) (487,130) 39,670 (532,331)
Contributions - - 81,246 81,246
Board designated endowment
loan forgiveness (2,000,000) - - (2,000,000)
Donor releases of
endowment restrictions 2,607,090 (480,709) (2,126,381) -
Court releases of
endowment restrictions 2,012,197 (767,086) (1,245,111) -
Appropriation of endowment
assets for expenditures (2,589,454) (470,228) - (3,059,682)

June 30, 2017 $ 2,604,063 $ 2,174,069 $ 8,753,458 $ 13,531,590
Subsequent to June 30, 2017 additional donor releases for a number of endowment funds were obtained
and draws were made to fund the wind down expense of the College. These releases totaled approximately
$1,400,000 as of September 21, 2017. Approximately $1,100,000 of this amount was permanently
restricted corpus.
(Continued)
22.
June 30, 2017 and 2016
Interpretation of UPMIFA: The College Board of Trustees has interpreted the Uniform Prudent Management
of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of
the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary.
As a result of this interpretation, the College classifies as permanently restricted net assets (a) the original
value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the
permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the
direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The
remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net
assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure
by the College in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance
with UPMIFA, the College considers the following factors in making a determination to appropriate or
accumulate donor-restricted endowment funds:
(1) The duration and preservation of the fund,

(2) The purpose of the institution and the donor-restricted endowment fund,
(3) General economic conditions,
(4) The possible effect of inflation and deflation,
(5) The expected total return from income and the appreciation of investments,
(6) Other resources of the organization, and
(7) The investment policies of the organization.
Return Objectives and Risk Parameters: The College has adopted investment and spending policies for
endowment assets that attempt to provide a predictable stream of funding to programs supported by its
endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets
include certain assets of donor-restricted funds that the College must hold in perpetuity or for a donor-
specified period(s) as well as Board-designated funds. Under this policy, as approved by the Board of
Trustees, the endowment assets are invested in a manner that is intended to produce results that achieve
a total rate of return, over rolling ten-year periods, which exceeds the rate of inflation (Consumer Price
Index) by 5.0% per year on average. Risk, as measured by standard deviation, should be commensurate
with a passive portfolio, consisting of a similar asset allocation to the endowment.
Strategies Employed for Achieving Objectives: The purpose of the endowment is to provide funds to
underwrite the educational needs of current and future generations of students while enhancing the well-
being of the College. To satisfy its long-term rate-of-return objectives, the College combines the goal of
total return and preservation of capital with prudent risk tolerance in order to allow investment managers
the opportunity to achieve investment results consistent with the financial objectives of the endowment fund
and in a manner consistent with the Catholic values of the College. The College targets a diversified asset
allocation in order to manage downside volatility and risk while achieving the endowments return objectives.
Spending Policy and How the Investment Objectives Relate to Spending Policy: The Trustees of Saint
Joseph’s College have established an endowment spending policy which attempts to balance the long-term
objective of maintaining the purchasing power of the endowment with the goal of providing funds to
underwrite the educational needs of current and future generations of students and to enhance the financial
well-being of the College.
(Continued)
23.
June 30, 2017 and 2016
Typically, the Board approved endowment income spending formula is computed at 7% of the average fair
value of the liquid portfolio for the prior twelve quarters fair values. This spending formula is factored into
the College’s annual operating budget. However, due to the suspension of operations discussed in Note 13
and endowment draws which occurred due to donor and court releases, the Board approved a special draw
from the endowment calculated as 7% of the liquid endowment value as of March 31, 2017.
During the year ended June 30, 2016, the Board authorized draws from the board designated endowment
in the amount of $3 million which exceeds the spending policy noted above. These amounts are reflected
in the changes in endowment net assets for year ended June 30, 2016. Additionally, the Board authorized
management to borrow an additional $2 million from the board designated endowment fund for operating
purposes. The $2 million loan is included within the unrestricted endowment net assets balance of
$2,624,483 at June 30, 2016. On March 3, 2017, the Board forgave this loan due to the decision to suspend
operations as further described in Note 13.
During the year ended June 30, 2017, the Board authorized additional draws from the endowment up to $3
million to the extent that board designated endowment funds and donor-released endowment funds were
sufficient to fund such a draw. Only $2.5 million of this amount was drawn by June 30, 2017. This amount
was included in the “Appropriation of Endowment Assets for Expenditure” line of the endowment roll-forward
noted previously. On June 29, 2017, a judge in the Marion Counter Superior Court ruled to modify donor
restrictions on four (4) endowment funds with an aggregate market value totaling $2,012,197.
Approximately $6,900,000 and $8,100,000 of endowment assets at June 30, 2017 and 2016, respectively,
are held as collateral for notes and mortgages payable as disclosed in Note 8.
Funds with Deficiencies: From time to time, the fair value of assets associated with individual donor
restricted endowment funds may fall below the level that the donor or UPMIFA requires the College to retain
as a fund of perpetual duration. Deficiencies of this nature that are in excess of related temporarily restricted
amounts are reported as an offset to unrestricted net assets. There were no funds with deficiencies as of
June 30, 2017 and 2016.
NOTE 13 - MANAGEMENT’S PLAN FOR CONTINUING OPERATION
Over the last ten years, the College has struggled to remain competitive in a challenging higher education
marketplace. Shifting demographics, increasing competition, and deteriorating facilities have resulted in
high levels of institutional aid in order to attract students in similar number to prior years. Net tuition
revenues are roughly the same in fiscal year 2016 as they were in 2006 (approximately $9.6 million and
$9.3 million, respectively) while expenses have increased at an annual rate of approximately 2.2% to $26.8
in 2016 from approximately $21.6 million in 2006. The combined impact of stagnating revenue and steadily
increasing expenses has resulted in the deterioration of cash reserves and, more recently, the use of board
designated endowment assets to fund annual expenditures. In October of 2016, the Board approved an
additional draw from the endowment of up to $3 million, limited to the amount of board-designated
endowment and related endowment funds available for withdrawal.
(Continued)
24.
June 30, 2017 and 2016
NOTE 13 - MANAGEMENT’S PLAN FOR CONTINUING OPERATION (Continued)
In 2016, the College exhausted the last of its available assets to fund annual deficits. The Board evaluated
potential sources of revenue and liquidity such as fundraising, borrowing, and asset liquidation vis-à-vis the
College’s short-term and long-term strategic and tactical challenges including continued availability of
student financial aid funds, accreditation probation, debt covenant violations, and an anticipated future lack
of liquidity. Accordingly, after evaluating all of these factors and after much deliberation, in February 2017
the Board made the decision to suspend all academic operations effective at the conclusion of the spring
semester 2017. While there was hope to retain select programs needed to support certain potential
academic partnerships that are being considered in the future, these efforts were ultimately unsuccessful.
Therefore, as of June 30, 2017 the College suspended all academic operations, voluntarily resigning its
accreditation status and thus making it ineligible to continue to participate in federal student financial aid
programs.
The College has entered into teach out agreements with other colleges and universities willing to help
current students complete their academic careers. The College is not enrolling any new students
subsequent to the spring semester 2017.
As disclosed in Notes 7 and 8, as of December 31, 2016 and June 30, 2017, management believes that
the College has violated its debt covenant to maintain a liquidity ratio of not less than 0.55 to 1.0. The
College has not obtained a waiver of this debt covenant violation from the bank. On August 18, 2017 the
bank declared the College in default on its debt. As a result of this debt covenant failure, the suspension of
debt payments, the default notice from the bank, an anticipated lack of liquidity to meet its obligations, and
because of the Board’s decision to suspend operations there exists substantial doubt about the entity’s
ability to continue as a going concern within one year after the date that the financial statements are issued.
The College is in active discussion with Farm Credit Mid-America and its other creditors to resolve its
outstanding debt obligations. In addition, the College is evaluating future opportunities including potential
academic partnerships which could enable it to resume educational activities at some future date.
The College is in the process of determining the feasibility of relaunching educational operations. This
project, known as the Saint Joseph’s Phoenix Project, seeks to identify a long-term sustainable business
model under which the College could resume educating students by June 30, 2019.
NOTE 14 - COMMITMENTS AND CONTINGENCIES
The College received significant student financial aid from the U.S. Department of Education. The
disbursement of funds received under such programs generally requires compliance with terms and
conditions specified in federal regulations and are subject to audit by the U.S. Department of Education and
possible disallowance of certain expenditures. The College had a composite ratio below 1.0 for the year
ended June 30, 2017 and is subject to federal requirements in order to continue to participate in Title IV
programs. The College has not had any significant disallowance of student financial aid in the past. As of
June 30, 2017, the College voluntarily resigned its accreditation status, which resulted in the College no
longer being eligible to participate in student financial aid programs (see Note 13).
As of June 30, 2017, management has recorded a liability in the amount of $266,263 within accrued wages
related to subsequent settlements with former members of the College’s faculty. Subsequent to year end,
the College has voluntarily offered separation packages to other groups of employees. The potential cost
of these separation payments is estimated to be approximately $1,214,000.
(Continued)
25.
June 30, 2017 and 2016
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Continued)
As part of an amended management agreement with the College’s food service provider, effective July 1,
2016, renovations were performed for the student center and chapel basement in the amount of $1,298,873.
This amount became due and payable upon termination of the dining services contract. The liability was
recorded in accounts payable and accrued expenses at June 30, 2017.
There are various other unresolved legal matters that are not reflected in the accompanying financial
statements, the outcome of these legal matters was not determinable. Management believes the resolution
of these matters will not have a material effect on the financial statements. Other than as noted above, no
provision for any loss has been included in the financial statements.
26.
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Federal
Federal/Pass Through Grantor CFDA
Program Title Number Expenditures
Student financial aid cluster:

US Department of Education
Federal Supplemental Educational Opportunity Grants 84.007 $ 124,899
Federal Direct Student Loans 84.268 5,313,829
Federal Work Study 84.033 103,931
Federal Perkins Loans 84.038 2,123,070
Federal Pell Grants 84.063 1,357,314
Total student financial aid cluster 9,023,043
Other federal grants

US Department of Education
Title III Strengthening Institutions Grant 84.031A 430,534
US Department of Justice
Grants to Reduce Domestic Violence, Dating Violence
Sexual Assault and Stalking on Campus Program 16.525 97,151
Total federal expenditures $ 9,550,728
See accompanying independent auditor’s report and notes to the schedule of

expenditures of federal awards.
27.
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTE 1 - BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of Saint Joseph’s College (the “College”) under programs of the federal government for the year
ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a
selected portion of the operations of the College, it is not intended to and does not present the statements
of financial position, activities or cash flows of the College.
Expenditures reported on the Schedule are reporting on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The College has elected not to use the
10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Negative amounts shown on
the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years.
NOTE 2 - OUTSTANDING LOANS
The amount presented for Federal Perkins Loans represents loan balances outstanding of $1,774,778 at
July 1, 2016, and current year advances of $348,292. The loan balances outstanding amount to $1,887,366
as of June 30, 2017.
The College performs origination services for the Department of Education, but does not make Federal
Direct Student Loans (FDSLs). The amount presented represents the value of new FDSLs awarded during
the year as follows:
Federal Direct Subsidized Stafford Loans $ 1,735,931

Federal Direct Unsubsidized Stafford Loans 2,107,575
Federal Direct PLUS Loans 1,470,323
Total FDSLs $ 5,313,829
NOTE 3 - RECONCILIATION TO THE STATEMENT OF ACTIVITIES
Total expenditures on the Schedule of

Expenditures of Federal Awards $ 9,550,728
Less: Federal funds for student financial assistance

not reported as revenue of the College
Federal Direct Student Loans 5,313,829
Federal Perkins Loans 2,123,070
Federal Pell Grants 1,357,314
Plus: Receivables and administrative cost allowance 8,433
Total government grants revenue shown

on the Statement of Activities $ 764,948
28.
Crowe Horwath LLP
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND

ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Rensselaer, Indiana
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of Saint Joseph’s College
(the “College”), which comprise the statement of financial position as of June 30, 2017, and the related
statements of activities and cash flows for the year then ended, and the related notes to the financial
statements, and have issued our report thereon dated September 29, 2017.
The accompanying financial statements have been prepared assuming that the College will continue as a
going concern. As discussed in Note 13 to the financial statements, due to ongoing financial difficulties
leading to debt covenant violations and unrestricted net deficit position, the College has suspended future
operations subsequent to year end that raises substantial doubt about its ability to continue as a going
concern. Management’s plans in regard to these matters are also described in Note 13.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the College’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the College’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
(Continued)
29.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the College’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Crowe Horwath LLP
Chicago, Illinois
September 29, 2017
30.
Crowe Horwath LLP
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;

REPORT ON INTERNAL CONTROL OVER COMPLIANCE

Rensselaer, Indiana
Report on Compliance for Each Major Federal Program
We have audited Saint Joseph’s College’s (the “College”) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the College’s major federal programs for the year ended June 30, 2017. The College’s major
federal program is identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the College’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the College’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the College’s compliance.
Opinion on Each Major Federal Program
In our opinion, the College complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on its major federal program for the year
ended June 30, 2017.
(Continued)
31.
Report on Internal Control Over Compliance
Management of the College is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the College’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the College’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Crowe Horwath LLP
Chicago, Illinois
September 29, 2017
32.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified, with emphasis of matter

regarding going concern
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiencies identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? Yes X No
Significant deficiencies identified? Yes X None Reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be

reported in accordance with 2 CFR 200.516(a)? Yes X No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
Student Financial Aid Cluster:

84.007 Federal Supplemental Educational Opportunity Grants
84.268 Federal Direct Student Loans
84.033 Federal Work Study Program
84.038 Federal Perkins Loan Program
84.063 Federal Pell Grants
Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000
Auditee qualified as low-risk auditee? Yes X No
(Continued)
33.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section II - Findings related to financial statements that are required to be reported in accordance
with GAGAS:
There were no financial statement findings for the year ended June 30, 2017.
Section III - Findings and questioned costs for federal awards including audit findings as described
in OMB Compliance Supplement 2 CFR 200.516(a):
There were no federal award findings for the year ended June 30, 2017.
Section IV - Prior Year Findings and Questioned Costs
There were no financial statement findings or federal award findings for the year ended June 30, 2016.
34.

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SINGLE AUDIT REPORT

June 30, 2017 and 2016

SINGLE AUDIT REPORT

INDEPENDENT AUDITOR’S REPORT .................................................................................................... 1

STATEMENTS OF FINANCIAL POSITION ...................................................................................... 3

STATEMENTS OF ACTIVITIES ........................................................................................................ 4

STATEMENTS OF CASH FLOWS .................................................................................................... 6

NOTES TO FINANCIAL STATEMENTS ........................................................................................... 7

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ............................................................ 27

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS................................. 28

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

SCHEDULE OF FINDINGS AND QUESTIONED COSTS ....................................................................... 33

INDEPENDENT AUDITOR’S REPORT

The Board of Trustees

Report on the Financial Statements

Management’s Responsibility for the Financial Statements

Emphasis of Matter Regarding Going Concern

Report on Other Legal and Regulatory Requirements

Crowe Horwath LLP

LIABILITIES AND NET ASSETS

Commitments and Contingencies (Note 14)

See accompanying notes to financial statements.

Changes in net assets from operations before

Loss on impairment of land, buildings,

Changes in net assets from operations (21,412,716) (282,717) - (21,695,433) (383,547)

Non-operating income (loss)

Changes in net assets (21,433,135) (2,431,405) (7,249,676) (31,114,216) (14,679,474)

Net assets at beginning of year (2,785,486) 5,488,685 82,461,458 85,164,657 99,844,131

Net assets at end of year $ (24,218,621) $ 3,057,280 $ 75,211,782 $ 54,050,441 $ 85,164,657

See accompanying notes to financial statements.

-------------------------------------- 2016 ----------------------------------------

Total tuition, fees and other support 26,870,950 (455,688) - 26,415,262

Changes in net assets from operations 72,141 (455,688) - (383,547)

Non-operating income (loss)

Changes in net assets (3,471,450) (6,604,325) (4,603,699) (14,679,474)

Net assets at beginning of year 685,964 12,093,010 87,065,157 99,844,131

Net assets at end of year $ (2,785,486) $ 5,488,685 $ 82,461,458 $ 85,164,657

See accompanying notes to financial statements.

Cash flows from investing activities

Cash flows from financing activities

Net change in cash and cash equivalents (1,658,336) (702,122)

Cash and cash equivalents, beginning of year 4,009,836 4,711,958

Cash and cash equivalents, end of year $ 2,351,500 $ 4,009,836

Supplemental disclosure of cash flow information:

Supplemental disclosure of non-cash transactions:

See accompanying notes to financial statements.

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

• Unrestricted - net assets that are not subject to donor-imposed restrictions.

• Permanently Restricted - net assets that are subject to donor-imposed restrictions to be

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Buildings and improvements 15-40 years

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Institutional Advancement Expenditures: Institutional advancement expenses represent costs identified by

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

NOTE 2 - CONTRIBUTIONS RECEIVABLE, NET

Contributions receivable are due as follows:

Investments consist of the following:

Cash and money-market funds $ 632,930 $ 267,755

NOTE 4 - FAIR VALUE OF INVESTMENTS AND TRUSTS HELD BY OTHERS

Inputs and Valuation Techniques:

NOTE 4 - FAIR VALUE OF INVESTMENTS AND TRUSTS HELD BY OTHERS (Continued)

Level 1 Level 2 Level 3 Total

Saint Joseph's College 2017 Audit

Saint Joseph's College 2017 Audit