LIBERTY UNIVERSITY
Annual Disclosure Report
Fiscal Year Ended June 30, 2022
November 23, 2022
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Liberty University
Annual Disclosure Report
for the Fiscal Year Ended
June 30, 2022
11/23/2022
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Table of Contents
I. INTRODUCTION ................................................................................................................................. 3
A. CUSIP Numbers ................................................................................................................................ 3
B. Annual Disclosure Report ................................................................................................................ 3
C. Other Matters .................................................................................................................................. 3
II. MANAGEMENT’S DISCUSSION OF CONSOLIDATED OPERATIONS .................................................... 5
III. ACADEMICS ................................................................................................................................... 6
A. Residential Academic Schools and Programs .................................................................................. 6
B. Liberty University Online Programs Academic Schools and Programs .......................................... 10
C. Student Enrollment and Retention ................................................................................................ 18
D. Student Applications and Academic Quality .................................................................................. 19
E. Tuition and Fees ............................................................................................................................. 21
F. Financial Aid ................................................................................................................................... 22
IV. FINANCES .................................................................................................................................... 25
A. Financial Condition ........................................................................................................................ 25
B. Contributions and Gifts .................................................................................................................. 30
C. Investments ................................................................................................................................... 31
D. Endowment Assets......................................................................................................................... 32
APPENDIX A: Audited Consolidated Financial Statements for Fiscal Year Ending June 30, 2022 ........... 33
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I. INTRODUCTION
Pursuant to the Continuing Disclosure Agreements dated January 19, 2012, and December 3,
2019 (collectively, the “Disclosure Agreement”) executed and delivered in connection with the issuance
of the $100,000,000 Liberty University 5.1000% Taxable Bonds Series 2012 (the “Series 2012 Bonds”),
the $99,710,000 Liberty University, Inc. Taxable Bonds, Series 2019 (the “Series 2019 Bonds”), and the
$150,000,000 Liberty University Tax Exempt Extendable Commercial Paper issued by the Virginia College
Building Authority, Liberty University (the “University”) hereby provides its annual disclosure report for
the fiscal year ended June 30, 2022 (the “Annual Disclosure Report”).
A. CUSIP Numbers
The CUSIP Number set forth for the Series 2012 Bonds is 531543AC0 with a maturity date on
March 1, 2042.
Each maturity of the Series 2019 Bonds is identified by the corresponding CUSIP Number set
forth below:
Maturity Date Series CUSIP
03-01-2024 Series 2019 531543AD8
03-01-2034 Series 2019 531543AF3
Note: The CUSIP Numbers above are provided for the convenience of the Bondholders. The University is
not responsible for the accuracy of such numbers. As of June 30, 2022, there was no commercial paper
outstanding.
B. Annual Disclosure Report
The University’s Annual Disclosure Report includes this Introduction, the information required
by section 4 of the Continuing Disclosure Agreement set forth in the Official Statement dated January
11, 2012 (“Series 2012 Bonds”), the information required by the Continuing Disclosure set forth in the
Bond Indenture dated December 1, 2019 (“Series 2019 Bonds”), and the University’s audited
consolidated financial statements for the fiscal years ended June 30, 2022 and 2021 (the “University’s
Fiscal Year 2022 Audited Financial Statements”). A copy of the University’s Fiscal Year 2022 Audited
Financial Statements is available in Appendix A of this document and has been posted on the Municipal
Securities Rulemaking Board’s Electronic Municipal Market Access system (“EMMA”) at
http://emma.msrb.org
. Please note that this Annual Disclosure Report is intended to be read in
conjunction with the University’s Fiscal Year 2022 Audited Financial Statements.
C. Other Matters
This Annual Disclosure Report is provided solely pursuant to the Disclosure Agreement. The
filing of the Annual Disclosure Report does not constitute or imply any representation (i) that all of the
information provided is material to investors, (ii) regarding any other financial, operating or other
information about the University or the Bonds, or (iii) that no changes, circumstances or events have
occurred since the end of the fiscal year to which this Annual Disclosure Report relates (other than as
contained in this Annual Disclosure Report), or that no other information exists, which may have a
bearing on the security for the Bonds, or an investor’s decision to buy, sell or hold the Bonds. The
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II. MANAGEMENT’S DISCUSSION OF CONSOLIDATED OPERATIONS
A. Fiscal Year Ended June 30, 2022
Residential fall enrollment increased 6.5% from 14,520 in fiscal year 2021 to 15,464 in fiscal year
2022. Liberty University Online enrollment increased 1.0% from 113,953 in fiscal year 2021 to 114,786
in fiscal year 2022. Total revenues increased 5.0% from $1.15 billion in fiscal year 2021 to $1.21 billion in
fiscal year 2022. Total expenditures increased by 12.1% from $839.8 million in fiscal year 2021 to $941.6
million in fiscal year 2022. Long-term debt decreased from $195 million in fiscal year 2021 to $191.5
million in fiscal year 2022. Expendable financial resources improved from $2.35 billion in fiscal year
2021 to $2.39 billion in fiscal year 2022. Total net assets increased by 1.9% from $3.46 billion in fiscal
year 2021 to $3.53 billion in fiscal year 2022. Net assets without donor restrictions comprised 99.1% of
total net assets in fiscal year 2022.
In August 2021, an external law firm completed the forensic investigation authorized by the
Board into certain facets of the University’s operations during the tenure of Former President Falwell’s
leadership and the University began implementing the firm’s recommendations during fiscal year 2022.
Dr. Jerry Prevo continued to serve as Acting President and the Search Committee of the Board
publicly kicked off the Presidential search in August, 2022.
On March 11, 2021, President Biden signed into law the “American Rescue Plan (“ARP”) Act.”
The ARP Act created an additional allocation of federal funds for education under the HEERF Grant
(“HEERF 3”). The University was allocated $63,492,347 of HEERF 3 funds. During the year ended
June 30, 2022, the University drew down and disbursed all $40,543,741 of HEERF 3 funds allocated
for student aid directly to students. During the year ended June 30, 2022, the University expended
and recognized $9,747,281 of HEERF 3 funds to reimburse institutional expenses related to COVID-
19 as grants and contracts revenue in the accompanying statement of activities. As of the date of
this report, an additional $5,532,144 of HEERF 3 funds has been drawn down to reimburse
institutional expenses.
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III. ACADEMICS
A. Residential Academic Schools and Programs
The University offers 13 certificate programs, 238 undergraduate programs and specializations,
124 graduate programs and specializations and eight doctoral programs and specializations. Listed below
is a description of the various schools and colleges of the University:
College of General Studies. Beginning in Fall 2019 the College of General Studies was absorbed by
the College of Applied Studies and Academic Success. The College of General Studies oversees the general
education curriculum and introductory courses across all of the University’s undergraduate programs.
The College of General Studies provides undergraduate students, particularly during their first two years
of study, with the academic preparation to help them succeed when pursuing a degree from one of the
University’s schools and colleges listed below.
College of Applied Studies & Academic Success. The College of Applied Studies & Student Success
offers an Associate of Arts, Bachelor of Science and Bachelor of Arts in Individualized Programs of Study,
and an Associate of Applied Science in Technical Studies in the trades of Welding, Electrical, Plumbing,
HVAC, and Carpentry. Students who have not decided on a major, or students who are not enrolled in a
degree-seeking program are placed into the College of Applied Studies & Academic Success.
College of Arts and Sciences. The College of Arts and Sciences is comprised of the Departments of
English, Family and Consumer Sciences, General Math and Sciences, History, Interdisciplinary Studies,
Mathematics, Modern Languages, and Army ROTC. The Department of English offers the Bachelor of Arts
and Master of Arts in English, and a Bachelor of Science in Writing. The Department of General Math and
Science offers an Associate of Science in STEM Mathematics. The Department of History offers Bachelor
of Arts in History, Bachelor of Science in History and Military Studies with a focus on Leadership, Associate
of Arts in History, Bachelor of Science in Social Sciences, and a Master of Arts in History. The Department
of Interdisciplinary Studies offers the Bachelor of Arts in Interdisciplinary Studies, Bachelor of Science in
Interdisciplinary Studies, and Associates of Arts in Interdisciplinary Studies. The Department of Modern
Languages offers the Bachelor of Arts in American Sign Language & Interpreting, Spanish, and Teaching
English as a Second/Foreign Language as well as a Certificate in Teaching English as a Second Language.
The Department of Family and Consumer Sciences offers the Bachelor of Science in Family & Child
Development, Family & Consumer Sciences with a concentration in Professional and Creative Industries
and Event Planning, Fashion with concentrations in Fashion Design and Fashion Merchandising, and
Interior Design. The Department of Mathematics offers the Bachelor of Science in Mathematics and
Applied Mathematics and Statistics with a specialization in Actuarial. The ROTC Department offers minors
in Military Leadership – Army and Military Leadership - Air Force.
Helms School of Government. The Helms School of Government offers the Associate of Arts in
Government and an Associate of Arts in Criminal Justice. Bachelor level degrees offered include a
Bachelor of Science in Criminal Justice with specializations in Advanced Investigative Studies, Crime Scene
Investigation, Homeland Security, Juvenile Justice, Public Administration, and Strategic Intelligence
Studies; a Bachelor of Arts in Government with a concentrations in Politics and Policy and National
Security Studies; a Bachelor of Science in Government with concentrations in Politics and Policy and
National Security Studies; a Bachelor of Arts in International Relations with concentrations in International
Politics and Policy and Strategic Intelligence Studies; a Bachelor of Science in Law & Policy with a
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concentration in Pre-Law and a Bachelor of Arts in Law & Policy. A Master of Arts in Public Policy is also
offered.
Liberty University College of Osteopathic Medicine. The Liberty University College of Osteopathic
Medicine offers a Doctor of Osteopathic Medicine and is accredited by the American Osteopathic
Association’s Commission on Osteopathic College Accreditation (AOA-COCA).
Liberty University School of Law. The Liberty University School of Law offers the Juris Doctor
degree and is fully accredited by the American Bar Association. Dual Juris Doctorate degree programs are
offered in conjunction with other graduate programs such as the Master of Arts in History, Master of
Business Administration, Master of Arts in Public Policy, and Master of Religion.
Rawlings School of Divinity. The Liberty University Baptist Theological Seminary and the School
of Religion were combined to form the School of Divinity and then were subsequently renamed as the
John W. Rawlings School of Divinity. Undergraduate programs are the Bachelor of Arts in Biblical Studies;
Bachelor of Arts in Theology & Apologetics with specializations in Biblical Scholarship, Global Studies, and
Writing & Literature; Bachelor of Science in Camp and Outdoor Adventure Leadership with specializations
in Global Studies, Sport Outreach, and Youth Ministries; Bachelor of Science in Christian Leadership and
Church Ministries with specializations in Biblical Studies, Camp & Outdoor Adventure Leadership, Global
Studies, Technical Studies, Theology & Apologetics, Women’s Leadership, and Worship; Bachelor of
Science in Global Studies; Bachelor of Science in Pastoral Leadership; Bachelor of Science in Religious
Studies with specializations in Biblical Languages, Global Studies, New Testament, Old Testament, and
Theology & Apologetics; and the Bachelor of Science in Youth Ministries with specializations in Biblical
Studies, Camp & Outdoor Adventure Leadership, Christian Leadership, Global Studies, Pastoral
Leadership, Sport Outreach, Technical Studies, Theology & Apologetics, Women’s Leadership, and
Worship. Graduate programs are the Master of Arts in Biblical Exposition; Master of Arts in Christian
Apologetics; Master of Arts in Biblical Studies; Master of Arts in Christian Ministry; Master of Arts in Global
Studies; Master of Arts in Religion with specializations in Biblical Studies, Christian Apologetics, Church
History, Church Ministry in Digital Age, Community Chaplaincy, Discipleship & Church Ministry, Evangelism
& Church Planting, Global Studies, Homiletics, Leadership, Pastoral Counseling, Pastoral Ministries,
Theology, and Worship; Master of Arts in Theological Studies; Master of Divinity with specializations in
Biblical Studies, Biblical Languages, Christian Leadership & Church Ministries, Christian Thought, Church
Ministry in Digital Age, Discipleship Ministries, General, Global Studies, Homiletics, and Pastoral
Counseling; Master of Divinity in Professional Chaplaincy with specializations in - General, Healthcare,
Military, and Community; and the Master of Theology with specializations in Biblical Studies, Christian
Apologetics, Church History, Global Studies, Homiletics, and Theology. Graduate Certificates are offered
in Greek and Hebrew.
School of Aeronautics. The School of Aeronautics is a FAA-certified flight school offering a Bachelor
of Science in Aeronautics with specializations in Commercial/Corporate, Global Studies, and Military; a
Bachelor of Science in Aviation Administration with specializations in Aviation Safety Management and
Flight; a Bachelor of Science in Aviation Maintenance with specializations in Management and Unmanned
Aerial Systems; a Bachelor of Science in Aviation Technology with a specialization in Flight & Maintenance;
and a Bachelor of Science in Unmanned Aircraft Operations. The school also offers an Associate of Arts in
Aviation Maintenance Technician, and undergraduate certificates in Aviation Maintenance Technician and
Medium Unmanned Aerial Systems.
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School of Behavioral Sciences. The School of Behavioral Sciences is comprised of the Departments
of Community Care & Counseling, Counselor Education & Family Studies, Psychology, and Social Work.
Undergraduate programs offered are the Bachelor of Science in Psychology with specializations in Child
Life Specialist, Counseling, Developmental Psychology, Criminal Psychology, Industrial/Organizational
Psychology, and Sport Psychology; and the Bachelor of Science in Social Work. Graduate programs offered
are the Master of Arts in Applied Industrial/Organizational Psychology; Master of Arts in Clinical Mental
Health Counseling; Master of Arts in Marriage & Family Counseling; Master of Arts in Pastoral Counseling
with specializations in Crisis Response & Trauma, Discipleship & Church Ministry, Leadership, Marriage &
Family, Pastoral Counseling, and Theology; the Master of Science in Psychology; the Master of Social Work
with specializations in General and Individual & Family Clinical; and the Doctor of Psychology in Clinical
Psychology.
School of Business. The School of Business offers the Bachelor of Science in Accounting; Bachelor
of Science in Business Administration with specializations in Finance, Financial Planning, Healthcare
Management, Automotive Dealership Management, Communications, Data Analytics, Digital Marketing
& Advertising, Economics, Entrepreneurship, Human Resource Management, Humanitarian Aid,
International Business, Marketing Analytics, Marketing: Sales Management & Professional Selling, Project
Management, and Supply Chain Management; Bachelor of Science in Computer Science with
specializations in Cybersecurity, General, Software Engineering, and Web & Mobile Programming;
Bachelor of Science in Hospitality Management with specialization in Conference and Event Management;
a Bachelor of Science in Coaching; a Bachelor of Science in Informatics; Bachelor of Science in Information
Systems with specializations in Accounting Information Systems, Data Networking, Database, Global
Studies, and Information Assurance; Bachelor of Science in Information Technology with specializations
in Application & Database Development, Data Networking & Security, Gaming Design, and Web & Mobile
Programming; Bachelor of Science in Sport Management with specializations in General, Sport
Administration, Sport Communication & Public Relations, Sport Outreach, and Sport Venue Management.
Graduate programs offered are the Master of Business Administration with specialization in Accounting,
Criminal Justice Administration, Economics, Executive Coaching, Finance, Healthcare Management,
Human Resources, International Business, Leadership, Marketing, Non-Profit Leadership & Management,
Project Management, Public Administration, Public Relations, Real Estate Development, Strategic
Management, Strategic Media & Digital Content, Supply Chain Management & Logistics, and Tourism
Management; Master of Science in Cyber Security; Master of Science in Information Technology with
specializations in Network Design & Security and Software Design & Management; Master of Science in
Sport Management with specializations in Coaching & Athletic Administration, Tourism, Outdoor
Adventure Sport, and Sport Administration. A graduate business certificate is also offered.
School of Communication and the Arts. The School of Communications and the Arts was formerly
part of the School of Communication and Creative Arts and has been combined with the School of Visual
and Performing Arts. The School of Communication and the Arts is comprised of the Department for
Cinematic Arts, the Department of Digital Media & Journalism, the Department of Strategic and Personal
Communication, the Department of Studio & Digital Arts, and the Department for Theatre Arts. The School
of Communication and the Arts offers the Bachelor of Arts in Theatre Arts, Bachelor of Fine Arts in Acting;
the Bachelor of Science in Communication with specializations in Communication and Integrated
Communication; a Bachelor of Science in Digital Media and Journalism with specializations in Audio – Live
Production, Audio – Music Recording, Audio – Post Production, Church Media Production, Digital
Journalism, Entertainment Journalism, Sports Journalism, Video Editing, and Video Production; a Bachelor
of Science in Film Production & Content Development; a Bachelor of Fine Arts in Musical Theatre; a
Bachelor of Fine Arts in Graphic Design; a Bachelor of Fine Arts in Studio Art; a Bachelor of Science in
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Strategic Communications with specializations in Social Media Management and Strategic
Communication; a Bachelor of Science in Studio & Digital Arts with specializations in Graphic Design and
Studio Art; and a Bachelor of Science in Theatre Arts. The School of Communication and the Arts also
offers the Master of Fine Arts in Graphic Design and Studio Art; the Master of Arts in Strategic
Communication and Communication; and the Master of Arts in Communication.
School of Education. The School of Education provides programs designed to produce teachers
and administrative educators to work at the pre-school through high school level. The School of Education
offers a Bachelor of Education in Biology Education 6-12; a Bachelor of Education in Business Education 6-
12; a Bachelor of Education in Chemistry Education 6-12; a Bachelor of Education in Computer Science
Education 6-12; a Bachelor of Education in Elementary Education with specializations in Middles Grades
English, Middle Grades Mathematics, Middle Grades Science, and Middle Grades Social Science; a
Bachelor of Education in Elementary Education with Special Education General Curriculum K-6 Add-On; a
Bachelor of Education in Engineering Education 6-12; a Bachelor of Education in English as a Second
Language Education P-12; a Bachelor of Education in English Education 6-12; a Bachelor of Education in
Family & Consumer Sciences Education 6-12; a Bachelor of Education in Health & Physical Education P-12;
a Bachelor of Education in Mathematics Education 6-12; a Bachelor of Education in Middle Education with
specializations in English, Math, Science, and Social Science; a Bachelor of Education in Social Studies
Education 6-12; a Bachelor of Education in Spanish Education P-12; a Bachelor of Education in Special
Education; a Bachelor of Education in Theatre Arts Education P-12; and a Bachelor of Education in Visual
Arts Education P-12. Certificates in Algebra I Education, Journalism Education, and Speech Education are
also offered.
School of Engineering. The School of Engineering offers the Bachelor of Science in Civil
Engineering; Bachelor of Science in Computer Engineering; Bachelor of Science in Electrical Engineering;
Bachelor of Science in Industrial & Systems Engineering; Bachelor of Science in Mechanical Engineering; a
Master of Science in Engineering; and a Doctor of Philosophy in Engineering.
School of Health Sciences. The School of Health Sciences is comprised of the Department of
Biology & Chemistry, Department of Allied Health Professions, and the Department of Public and
Community Health. The School of Health Science offers a Bachelor of Science in Biochemistry and
Molecular Biology; Bachelor of Science in Biomedical Sciences with a specialization in Global Studies; a
Bachelor of Science in Biopsychology; Bachelor of Science in Biotechnology; Bachelor of Science in
Chemistry; Bachelor of Science in Conservation & Environmental Biology; Bachelor of Science in Exercise
Science with a specialization in Fitness Specialist, Strength and Conditioning Specialist, and Therapeutic
Science; Bachelor of Science in Forensic Science; Bachelor of Science in General Biology; Bachelor of
Science in Physical Education and Health; Bachelor of Science in Public Health with specializations in
Health Promotions, Pre-Clinical, and Health Promotion and Master of Public Health; Bachelor of Science
in Respiratory Therapy; Bachelor of Science in Zoo and Wildlife Biology; and a Bachelor of Science in
Zoology. The School of Health Sciences also offers a Master of Public Health with specializations in
Epidemiology, Global Health, Health Promotion, and Nutrition; Master of Science in Athletic Training; a
Master of Science in Biomedical Sciences; Master of Science in Exercise Science and Wellness with
specializations in Fitness & Performance and Nutrition & Wellness; Master of Science in Human
Performance with specializations in Clinical, Fitness & Wellness, Nutrition, and Strength & Conditioning;
and a PhD in Anatomy & Cell Biology. Graduate certificates in Epidemiology, Global Health, Health
Promotion, and Nutrition are also offered.
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School of Music. The School of Music is comprised of the Center for Music and Worship, Center
for Music Education & Performance, Department of Commercial Music, Department of Multi-Ethnic Music
Studies, Department of Music & Worship Studies, and Michael W. Smith Center for Commercial Music.
The School of Music offers a Bachelor of Music in Commercial Music with specializations in Artist
Development, Publishing & Producing, Songwriting, Film Scoring, Jazz Studies, Recording, Engineering &
Producing; Bachelor of Music in Guitar Performance; Bachelor of Music in Music Education with
specialization in Choral and Instrumental; Bachelor of Music in Music in World Cultures; Bachelor of Music
in Piano Performance; Bachelor of Music in String Performance; Bachelor of Music in Vocal Performance;
Bachelor of Music in Woodwind, Brass, or Percussion Performance; Bachelor of Music in Worship
Leadership; Bachelor of Science in Commercial Music; Bachelor of Science in Music & Worship with
specializations in Biblical Studies, Business, Pastoral Leadership, Women’s Leadership, Worship
Technology, and Youth Ministries; Bachelor of Science in Music Instrumental; a Bachelor of Science in
Music Vocal; and a Bachelor of Science in Music in World Cultures. The School of Music offers a Master
of Arts in Music and Worship with specializations in Commercial Music Performance, Conducting, and
Worship & Music Studies; Master of Arts in Music Education with specializations in Conducting,
Performance, and Music Studies; and a Master of Arts in Worship Studies with specializations in
Ethnomusicology, Leadership, and Worship Techniques.
School of Nursing. The School of Nursing offers the Bachelor of Science in Nursing with a
specialization in Accelerated Pre-Licensure Program: BA/BS, Accelerated Pre-Licensure Program:
Veteran; a Bachelor of Science in Nursing: Pre-licensure (B.S.N) with a specialization in Global Studies;
and the Doctor of Nursing Practice with a Family Nurse Practitioner specialization.
The following table provides information on the distribution of resident undergraduate,
graduate and doctoral students among the schools & colleges for fiscal year 2022:
Schools & Colleges:
Number of Students
Percent
1
College of Applied Studies & Academic Success
264
1.7%
College of Arts & Sciences
1,447
9.1%
Helms School of Government
976
6.2%
Liberty University College of Osteopathic Medicine
628
4.0%
Liberty University School of Law
294
1.8%
Rawlings School of Divinity
813
5.1%
School of Aeronautics
643
4.1%
School of Behavioral Sciences
1,381
8.7%
School of Business
3,236
20.5%
School of Communication & the Arts
1,413
8.9%
School of Education
659
4.2%
School of Engineering
611
3.9%
School of Health Sciences
1,879
11.9%
School of Music
553
3.5%
School of Nursing
1,011
6.4%
Notes:
1. The numbers in each column may not equal totals due to rounding.
B. Liberty University Online Programs Academic Schools and Programs
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In 1985, the University established its off-campus distance learning program to provide
educational course offerings to students around the world. Prior to the Internet, all distance learning
courses used videotaped lectures and other accompanying course materials.
The University’s on-line distance learning program has grown to be a significant part of the
University’s operations. In June 2007, the program became known as Liberty University Online and has
subsequently been rebranded to Liberty University Online Programs. In January 2008, Liberty University
Online Programs was ranked third nationally by the Online Education Database based on quality factors
such as retention, graduation rate, student-faculty ratio and the number of years accredited and in
operation. On August 2, 2013 and continued in 2014, Liberty University was ranked first nationally by
TheBestSchools.org among online Christian schools based on Christian character, academic prestige, and
extent and quality of online degree programs. Liberty University was ranked No. 1 in the nation for its
online degrees in counseling in the OnlineU’s 2015 Best Value in Online College Rankings. In 2014,
according to a BBC report, Google has revealed that Liberty University was the 17
th
highest searched for
university in the world. The number of full-time and part-time students participating in Liberty University
Online Programs undergraduate and graduate programs at the University was 85,848
in fiscal year 2018
and 114,786 in fiscal year 2022.
Although Liberty University Online Programs courses differ from residential course offerings due
to methodologies of instruction, Liberty University Online Programs courses are comparable to residential
courses in content. Liberty University Online Programs utilizes the online software platform Canvas so
that students can have Internet access to reading materials, other online resources and interaction with
professors and other students. The focus of courses offered by Liberty University Online Programs is
primarily business, education, psychology, religion, counseling and nursing. Liberty University Online
Programs offers 92 certificate programs, 175 undergraduate programs and specializations, 319 masters
and post masters programs and specializations, and 108 doctorate programs and specializations.
The following summarizes the online programs that are offered through each of the schools and
colleges:
College of Applied Studies & Academic Success. Students who have not decided on a major, or
students who are not enrolled in a degree-seeking program are placed into the College of Applied Studies
& Academic Success.
College of Arts & Sciences. The College of Arts & Sciences offers the Associate of Arts in Creative
Writing; Associate of Arts in History; Associate of Arts in Interdisciplinary Studies; Associate of Arts in
Military History, Associate of Arts in Philosophy, Politics, and Economics, and the Associate of Science in
STEM Mathematics. Bachelor degrees offered are the Bachelor of Science in Computational Mathematics
with specializations in Actuarial, Engineering, Computer Science, and Information Systems; Bachelor of
Science in English & Writing with specializations in Creative Writing and Journalism; Bachelor of Science
in Fashion Merchandising with specializations in Fashion Writing and Creative Design; Bachelor of Science
in Geography; Bachelor of Science in History; Bachelor of Science in Interdisciplinary Studies; Bachelor of
Science in Military Studies with specializations in History, International Security, Professional, and
Resiliency; Bachelor of Science in Physics and the Bachelor of Science in Teaching English as a Second
Language. Graduate programs are the Master of Arts in Composition; Master of Arts in Geography;
Master of Arts in History; Master of Arts in Interdisciplinary Studies; Master of Arts in Professional Writing;
Master of Arts in Public History; Master of Arts in Teaching English as a Second Language; Master of Arts
in Linguistics with specializations in Applied Linguistics, English Language Studies, and Teaching English as
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a Second Language; Master of Arts in Military Operations with specializations in Military History, Military
Leadership, National Security, and Supply Chain Logistics & Geography; Master of Fine Arts in Creative
Writing; and the PhD in History. An undergraduate certificate in Teaching English as a Second Language
and an Executive Certificate in History is also offered.
Helms School of Government. The Helms School of Government offers the undergraduate
programs in the Associate of Arts in Criminal Justice; Bachelor of Science in Criminal Justice with
specializations in Business Administration & Management, Corrections and Human Services, Crime Scene
Investigation, Criminal Psychology, Homeland Security, Juvenile Justice, Public Administration, and
Strategic Intelligence Studies; Bachelor of Science in Fire Administration; Bachelor of Science in
Government with specializations in National Security, Politics & Policy, and Public Administration;
Bachelor of Science in Law & Policy with specializations in Pre-Law and Public Policy; Bachelor of Science
in Political Science; and the Bachelor of Science in Public Administration. Undergraduate certificates are
offered in Criminal Justice and Public Administration. Graduate programs are the Master of Arts in Public
Policy with specializations in Campaign & Elections, International Affairs, Leadership, Middle East Affairs,
Policy Studies, and Public Administration; Master of Public Administration with specializations in Business
& Government, Disaster Management, Fire Administration, General, Healthcare, Law & Public Policy, and
Public & Non-Profit Management, and Urban Planning; Master of Science in Criminal Justice with
specializations in Corrections Management, Cybercrime Investigation, Forensic Psychology, Law
Enforcement Leadership, Homeland Security, Legal Studies, Public Administration, and Restorative
Justice; Master of Science in Homeland Security & Disaster Management; Master of Science in
International Relations; Master of Science in National Security with a specialization in Homeland Security;
Master of Science in Political Science; Master of Science in Public Safety with specializations in Criminal
Justice, Fire Administration, General, and Homeland Security; Doctor of Public Administration, Doctor of
Philosophy in Criminal Justice with specializations in Homeland Security and Leadership; Doctor pf
Philosophy in Public Administration, Doctor of Criminal Justice with specializations in Homeland Security,
General, and Leadership; Doctor of Philosophy in Public Policy with specializations in Economic Policy,
Education Policy, Foreign Policy, National Security Policy, and Social Policy; and a Doctor of Law & Policy.
Certificate programs are the Advanced Graduated Certificate in Criminal Justice, Advanced Graduate
Certificate in Homeland Security, Advanced Graduate Certificate in Public Policy, Executive Certificate in
Criminal Justice, Executive Certificate in Public Administration, Executive Certificate in Public Policy,
Graduate Certificate in Criminal Justice, Graduate Certificate in Public Administration, Graduate
Certificate in Public Policy.
Liberty University School of Law. The Liberty University School of Law offers the Associate of Arts
in Paralegal Studies and the Bachelor of Science in Paralegal Studies. Graduate programs are the Juris
Master with specializations in General, Compliance, and Health Law; Juris Master in American Legal
Studies, Juris Master in International Legal Studies; the Master of Laws in International Legal Studies, A
Certificate is offered in Paralegal Studies.
Rawlings School of Divinity. The John W. Rawlings School of Divinity offers undergraduate
programs in the Associate of Arts in Apologetics; Associate of Arts in Biblical Studies; Associate of Arts in
Religion; Bachelor of Science in Applied Ministry; Bachelor of Science in Biblical and Educational Studies
with specialization in Biblical & Theological Studies; Bachelor of Science in Bible with specializations in
Apologetics, Christian Counseling, Christian Ministries, and Theology; Bachelor of Science in Christian
Leadership and Management with specialization in Business Management; Bachelor of Science in Cultural
Engagement; Bachelor of Science in Religion with specializations in Apologetics, Christian Leadership, Next
Generation Ministries, Biblical & Theological Studies, Christian Counseling, Christian Ministries,
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Evangelism, Digital Discipleship, and Global Studies. Undergraduate certificates are offered in Biblical
Studies, Christian Ministry, and Global Studies. Graduate programs are the Doctor of Ministry with
specializations in Biblical Studies, Chaplaincy, Church Revitalization, Discipleship, Evangelism & Church
Planting, Expository Preaching & Teaching, Ministry Leadership, Next Generation Ministry, Pastoral
Counseling, Spiritual Formation, Strategic Christian Ministry, Theology & Apologetics, Urban Ministry, and
Worship; Doctor of Education in Christian Leadership with specializations in Church Revitalization, Digital
Discipleship, Ministry Leadership, Next Generation Ministry, Spiritual Formation, and Strategic Christian
Ministry; Master of Arts in Biblical Exposition; Master of Arts in Biblical Languages with specialization in
Language Exegesis and Linguistics; Master of Arts in Christian Apologetics; Master of Arts in Sports
Chaplaincy; Master of Arts in Biblical Studies; Master of Arts in Christian Ministry; Master of Arts in Global
Studies with specializations in Linguistics and Teaching English as a Second Language; Master of Arts in
Religion with specializations in Biblical Studies, Christian Apologetics, Church History, Church Ministry in
Digital Age, Community Chaplaincy, Discipleship & Church Ministry, Evangelism & Church Planting, Global
Studies, Homiletics, Leadership, Next Generation Ministry, Pastoral Counseling, Pastoral Ministries,
Theology, and Worship; Master of Arts in Theological Studies; Master of Divinity with specializations in
Biblical Studies, Biblical Languages, Christian Apologetics, Christian Leadership & Church Ministries,
Christian Ministries, Church History, Church Ministry in Digital Age, Discipleship Ministries, General, Global
Studies, Homiletics, Leadership, Pastoral Counseling, Theology, Youth & Family Ministries; Master of
Divinity in Professional Chaplaincy with specializations in Healthcare, Military, General, and Community;
Master of Religious Education; Doctor of Philosophy in Bible Exposition; Doctor of Philosophy in Theology
and Apologetics; Master of Theology with specialization in Biblical Studies, Christian Apologetics, Church
History, Global Studies, Homiletics, and Theology. Graduate certificates are available in Bible Exposition,
Biblical Studies, Christian Leadership, Christian Ministry, Christian Ministry in the Digital Age, Global
Studies, Greek, Hebrew, Theological Studies, and Executive Certificates in Bible Exposition and Christian
Leadership. A Post-Graduate Certificate in Chaplaincy and the Graduate of Theology Diploma with
specialization in Biblical Studies is also available.
School of Aeronautics. The School of Aviation offers the Bachelor of Science in Aviation; the
Bachelor of Science in Aviation Maintenance Management; Bachelor of Science in Aviation Management;
Master of Science in Aeronautics with specialization in Aviation Education, Aviation Leadership, and
Aviation Safety.
School of Behavioral Sciences. The School of Behavioral Sciences offers undergraduate programs
in the Associate of Arts in Psychology; Associate of Arts in Psychology Christian Counseling; Bachelor of
Science in Psychology with specializations in Addictions & Recovery, Christian Counseling, Criminal
Psychology, Crisis Counseling, Developmental Psychology, Life Coaching, and Military Resilience; the
Bachelor of Science in Social Work; and the Bachelor of Science in Human Services. An undergraduate
certificate in Military Resilience is also offered. Graduate programs offered are the Doctor of Education
in Community Care and Counseling with specializations in Traumatology, Marriage and Family Counseling,
and Pastoral Care & Counseling; Master of Arts in Addiction Counseling, Master of Arts in Applied
Psychology with specializations in Developmental Psychology and Industrial/Organizational Psychology;
Master of Arts in Clinical Mental Health Counseling; Master of Arts in Human Services Counseling with
specializations in Dobson Center Family Advocacy, Public Policy & the Future, Dobson Center Marriage &
Family Studies, Dobson Center Parenting & Child/Adolescent Development, Addictions & Recovery,
Business, Christian Ministries, Criminal Justice, Crisis Response & Trauma, Executive Leadership, General,
Health & Wellness, Life Coaching, Marriage & Family, and Military Resilience; Master of Arts in Marriage
and Family Therapy; Master of Arts in Pastoral Counseling with specializations in Addictions & Recovery,
Community Chaplaincy, Crisis Response & Trauma, Discipleship & Church Ministry, Dobson Center Family
14
Advocacy, Public Policy & the Future, Dobson Center Marriage & Family Studies, Dobson Center Parenting
& Child/Adolescent Development, General, Leadership, Life Coaching, Marriage & Family, Military
Resilience, Pastoral Counseling, and Theology; Master of Education in School Counseling; Education
Specialist in Community Care & Counseling with specializations in Marriage & Family Counseling, Pastoral
Care & Counseling, and Traumatology; Master of Social Work Advanced Generalist; Doctor of Philosophy
in Counselor Education & Supervision; Doctor of Philosophy in Psychology with specializations in
Industrial/Organizational Phsychology, Developmental Psychology, General Psychology, Social
Psychology, and Theology. Graduate certificates are offered in Military Resilience, Pastoral Counseling,
and Executive Certificate in Psychology.
School of Business. The School of Business offers undergraduate programs in the Associate of Arts
in Accounting; Associate of Arts in Business; Associate of Arts in Information Systems; Bachelor of Science
in Accounting; Bachelor of Science in Business Administration with specializations in Finance, Financial
Planning, Healthcare Management, Automotive Dealership Management, Communications, Data
Analytics, Digital Marketing & Advertising, Economics, Entrepreneurship, Green & Sustainable
Management, Human Resource Management, International Business, Leadership, Marketing Analytics,
Marketing: Sales Management & Professional Selling, Music Business, Project Management, Public
Administration, Real Estate, and Strategic Marketing Management; Bachelor of Science in Computer
Science Cybersecurity; Bachelor of Science in Healthcare Administration; Bachelor of Science in
Informatics; Bachelor of Science in Information Systems with specializations in Accounting Information
Systems, Data Networking, Database, and Information Assurance; Bachelor of Science in Information
Technology with specializations in Application & Database Development, Data Networking & Security,
Gaming Design, and Web & Mobile Programming; Bachelor of Science in Sport Management with
specializations in Conference & Event Management, General, Sport Administration, Sports
Communications & Public Relations, Sport Outreach, and Sport Venue Management. Undergraduate
certificates are offered in Business Administration, Accounting, Application Development, Data
Networking, Database, Financial Planning, Healthcare Management, Information Assurance, International
Business, Project Management, and Web Development. Graduate programs are offered in the Doctor of
Philosophy in Organization & Management with specializations in Entrepreneurship, Executive Coaching,
and Leadership, Doctor of Business Administration with specializations in Accounting, Executive Coaching,
Finance, Healthcare Management, Human Resources, Information Systems, International Business,
Leadership, Marketing, Non-Profit Leadership & Management, Six Sigma, Project Management, Real
Estate Development, Strategic Management, Strategic Media & Digital Content, Supply Chain
Management & Logistics, and Tourism Management; Doctor of Strategic Leadership; Master of Arts in
Executive Leadership; Master of Business Administration with specializations in Accounting, American
Legal Studies, Criminal Justice Administration, Economics, Executive Coaching, Finance, Healthcare
Management, Human Resources, International Business, International Legal Studies, Leadership,
Marketing, Non-Profit Leadership & Management, Six Sigma, Project Management, Public Administration,
Public Relations, Real Estate Development, Strategic Management, Strategic Media & Digital Content,
Supply Chain Management & Logistics, and Tourism Management; Master of Science in Accounting with
specializations in Audit & Financial Reporting, Business, Financial Services, Forensic Accounting, General,
Leadership, and Taxation; Master of Science in Cybersecurity; Master of Science in Finance with
specializations in Financial Management, General, and Financial Planning; Master of Science in Health
Informatics; Master of Science in Healthcare Administration with specializations in Accounting, Finance,
Human Resources, Leadership, Marketing, Non-Profit Management, Project Management, Public
Administration, Public Relations, Strategic Management, and Supply Chain Management & Logistics;
Master of Science in Marketing with specializations in Digital Marketing & Advertising, Project
Management, Public Relations, Social Media Management, and Sports Marketing & Media; Master of
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Science in Project Management; Master of Science in Sport Management with specializations in Tourism,
General, Outdoor Adventure Sport, Sport Administration, and Coaching & Athletic Administration; the
Master of Science in Information Systems with specializations in Information Assurance, Technology
Management; the Master of Science in Information Technology with specializations in Network Design &
Security, and Software Design & Management; and the Master of Nonprofit Management with
specializations in Entrepreneurship, Financial Management, Global Studies, Leadership, and Social Media.
Graduate certificates are offered in Advanced Certificate in Leadership; Graduate Certificates in General
Business, Healthcare Management, Management & Leadership, Marketing, Outdoor Adventure Sport,
Sport Management; and Executive Certificates in Business Administration and Strategic Leadership.
School of Communication and the Arts. The School of Communications and the Arts was formerly
part of the School of Communication and Creative Arts and has been combined with the School of Visual
and Performing Arts. The School of Communication and the Arts offers undergraduate programs in the
Bachelor of Science in Strategic Communication with specializations in Social Media Management and
Strategic Communications; the Bachelor of Fine Arts in Graphic Design; and the Bachelor of Science in
Digital Design with specializations in Character Design, Digital Merchandising, Graphic Design, Illustration
Design, Media Design, Photographic Design, and Visual Communication Design. Graduate programs are
offered in the Doctor of Philosophy in Communications, Doctor of Philosophy in Strategic Media, Master
of Arts in Communications, Master of Arts in Promotion and Video Content, Master of Arts in Strategic
Communication, Master of Science in Social Media Management, Master of Arts in Visual Communication
Design, and the Master of Fine Arts in Graphic Design. Graduate certificates are offered in the Applied
Communication Studies, Communication & Business Administration, Communication for Human Services,
Organizational Communication, and Executive Certificate in Communication.
School of Education. The School of Education offers undergraduate programs in the Associate of
Arts in Early Childhood Education; Associate of Arts in Education; Bachelor of Education in Business
Education 6-12; Bachelor of Education in Elementary Education with specializations in Middle Grades
English, Middle Grades Mathematics, Middle Grades Science, Middle Grades Social Science; Bachelor of
Education in Elementary Education with Special Education General Curriculum K-6 Add-On; Bachelor of
Education in English as a Second Language Education P-12; Bachelor of Education in English Education;
Bachelor of Education in Mathematics Education; Bachelor of Education in Middle Education with
specializations in English, Math, Science, Social Sciences; Bachelor of Education in Physics Education 6-12
with specialization in Earth Science; Bachelor of Education in Social Studies Education 6-12; Bachelor of
Education in Special Education; Bachelor of Science in Early Childhood Education Interdisciplinary Studies;
Bachelor of Science in Elementary Education Interdisciplinary Studies; Bachelor of Science in Special
Education Interdisciplinary Studies. Undergraduate Certificates are offered in Algebra I Education, Autism
Education, Earth Science Education, Journalism Education, Physics Education, and Preschool. Graduate
programs offered are the Master of Arts in Teaching with specializations in Elementary Education, Middle
Grades Education, and Secondary Education; Master of Arts in Teaching in Special Education with
specializations in Adapted Curriculum: Career & Technical Education – Transition & Special Needs; Early
Childhood Special Education, General Curriculum, and Special Education General Curriculum; Master of
Education with specializations in Administration & Supervision, Math Specialist Endorsement; and
Reading Specialist Endorsement; Master of Education in Curriculum & Instruction with specializations in
Early Childhood Education, Educational Technology, Elementary Education, English, Foreign Language
Education, General Education, Gifted Education, Health & Wellness Education, History, Leadership,
Middle Grades, Special Education, Student Services, Gifted Education, Special Education General
Curriculum, and Urban Education; Master of Education in Gifted & Special Education with a specialization
in Twice Exceptionalities: With Transition & Special Needs; Master of Higher Education with specializations
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in Educational Leadership, Instructional Design & Technology, and Student Affairs; Education Specialist in
Administration & Supervision with a specialization in Education Leadership; Education Specialist in
Curriculum & Instruction with specializations in Elementary Education, Middle Grades Education,
Secondary Education, and Special Education; Education Specialist in Educational Leadership; Education
Specialist in Higher Education Administration with specializations in Student Affairs; Doctor of Education
in Curriculum & Instruction with specializations in Elementary Education, Instructional Design and
Technology, Middle Grades Education, Secondary Education, and Special Education; Doctor of Education
in Educational Leadership; Doctor of Education in Higher Education Administration with specialization in
Educational Leadership, Organizational Leadership, and Student Affairs; Doctor of Philosophy in
Advanced Education Studies with specializations in Curriculum & Instruction, Educational Leadership,
Instructional Design & Technology, and Special Education; Doctor of Philosophy in Education with
specializations in Curriculum & Instruction, Educational Law, Instructional Design & Technology,
Organizational Leadership, and Special Education; Doctor of Philosophy in Educational Leadership; Doctor
of Philosophy in Higher Education Administration with specializations in Educational Leadership and
Student Affairs; Doctor of Education in Administration & Supervision with a specialization in Educational
Leadership. Graduate certificates are offered in Autism Education, Career and Technical Education –
Transition and Special Needs, Educational Technology and Online Instruction, Gifted Education, Middle
Grades, Preschool, School Administration & Supervision, School Leadership, Special Education, and Urban
Education. Executive Certificates are offered in Curriculum & Instruction, Higher Education
Administration, Instructional Design & Technology, School Administration & Supervision, and Special
Education.
School of Engineering. The School of Engineering offers undergraduate programs of study in the
Bachelor of Science in Civil Engineering and the Bachelor of Science in Industrial Engineering Technology.
Graduate programs of study are offered in the Master of Science in Engineering Management with
specializations in Leadership and Project Management.
School of Health Sciences. The School of Health Sciences offers undergraduate programs of study
in the Associate of Applied Sciences in Medical Office Assistant, the Bachelor of Science in Health Sciences,
and the Bachelor of Science in Respiratory Therapy. Undergraduate certificates of Health Sciences and
Medical Office Assistant is also offered. Graduate programs of study are offered in the Master of Arts in
Medical Sciences with specializations in Biopsychology, Business Management, Molecular Medicine, and
Public Health; Master of Public Health with specializations in Global Health, Health Promotion, and
Nutrition; Master of Science in Human Biology; the Master of Science in Human Performance with
specializations in Clinical, Fitness & Wellness, Nutrition, and Strength Training & Conditioning; Master of
Science in Exercise Science & Wellness with specialization in Fitness & Performance and Nutrition &
Wellness; the Master of Science in Nutrition; Doctor of Philosophy in Health Sciences with specializations
in Exercise & Sport Science and General. Graduate certificates are offered in Global Health, Health
Promotion, and Nutrition.
School of Music. The School of Music offers undergraduate programs of study in the Bachelor of
Science in Commercial Music with a specialization in Music Production; and the Bachelor of Science in
Worship Studies. An Undergraduate Certificate in Commercial Music is also offered. Graduate programs
of study are offered in the Doctor of Worship Studies with specializations in Ethnomusicology,
Leadership, and Pastoral Counseling; Doctor of Philosophy in Christian Worship; Doctor of Music
Education; Master of Arts in Ethnomusicology; Master of Arts in Music and Worship with specialization
in Worship Music Studies; Master of Arts in Music Education with specializations in Music Studies;
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Master of Arts in Worship Studies with specialization in African-America Worship, Ethnomusicology,
Leadership, Pastoral Counseling, Songwriting, Worship Technology and Worship Techniques. Graduate
certificates are offered in Music in World Cultures and Worship Studies.
School of Nursing. The School of Nursing offers undergraduate programs of study in the Bachelor
of Science in Nursing for RNs: Post Licensure with a specialization in Global Studies; Bachelor of Science in
Nursing for RNs: Post Licensure with specializations in Community Health, Health Policy, Nurse Educator,
Nursing Administration, and Nursing Informatics. Graduate programs of study are offered in BSN to MSN
for RNs: Post Licensure and Master of Science in Nursing with specializations in Community Health, Health
Policy, Nurse Educator, Nursing Administration, and Nursing Informatics; Master of Science in Nursing
with specializations in Community Health, Health Policy, Nurse Educator, Nursing Administration, and
Nursing Informatics; Master of Science in Nursing and Master of Business Administration; Master of
Science in Nursing and Master of Science in Healthcare Administration; Doctor of Nursing Practice with
specializations in Family Nurse Practitioner, Psychiatric Mental Health Nurse Practitioner, Nursing
Education; and the Doctor of Philosophy in Nursing with a specialization in Nursing Education. Executive
Certificates in Clinical Leadership and Nursing Educational Leadership are offered as well as a Post-
Graduate Certificate in Psychiatric Mental Health Nurse Practitioner
The Liberty University Online Programs curriculum is structured to encourage undergraduate and
graduate degree completion and approximately 98% of the students are working toward a degree. The
University believes that Liberty University Online Programs enhances student matriculation and retention
by fostering academic and spiritual commitment and a sense of community unique to online and distance
education. The University has operated its online and distance education programs for much of its
existence, and its internal culture has been long geared to meet the needs of students who desire a
Christian-based education but who are unable to attend classes in Lynchburg, Virginia.
The University’s commitment to academic excellence through accreditation by the Southern
Association of Colleges and Schools Commission on Colleges (“SACSCOC”) has created rigorous course
development and administration standards that require both online and residential courses to have the
same outcome-oriented curriculum. While the online programs afford the flexibility of studying at one’s
own pace and shorter 8-week classes, academic progress of each student is closely monitored by a staff
dedicated to ensuring that students are progressing through each course satisfactorily and to ensure the
academic or administrative issues that may be impeding the students’ progress are identified and resolved
as quickly as possible. All student course work is available 24 hours a day, seven days a week online and
a significant amount of the course work is being made available through mobile devices. A 360-degree
support network of academic, administrative and spiritual services—from application to graduation—is
available online and includes academic advisors, IT helpdesk, career center, library services and writing
center, and an online ministry network offering counseling and prayer.
In addition, the University believes that the vibrant residential campus provides Liberty University
Online Programs with the academic credibility usually afforded to “bricks and mortar” academic
programs. As a large Christian evangelical university with a NCAA Division I athletics program, the
University further allows Liberty University Online Programs students to establish a connection and
18
affinity with the University that may be difficult to re-create solely with an online academic program, as
many of the University’s athletic and spiritual activities are available online. Finally, the University
encourages degree completion by addressing student cost concerns by providing one of the lowest
undergraduate tuition rates of any leading online university in the country with a large student headcount.
The following table provides information on the distribution of Liberty University Online Programs
undergraduate, graduate and doctoral students among the colleges and schools for fiscal year 2022:
Schools & Colleges:
Number of Students
Percent
1
College of Applied Studies & Academic Success
1,529
1.3%
College of Arts & Sciences
8,190
7.1%
Helms School of Government
9,672
8.4%
Liberty University School of Law
1,492
1.3%
Rawlings School of Divinity
13,124
11.4%
School of Aeronautics
4,138
3.6%
School of Behavioral Sciences
24,536
21.4%
School of Business
23,991
20.9%
School of Communication & the Arts
2,462
2.2%
School of Education
18,041
15.7%
School of Engineering
647
0.6%
School of Health Sciences
3,901
3.4%
School of Music
1,134
1.0%
School of Nursing
1,929
1.7%
Notes:
1. The numbers in each column may not equal 100% due to rounding.
C. Student Enrollment and Retention
The following table provides resident program headcount information reflecting the
total number of full-time and part-time students in resident undergraduate and graduate degree
programs for Fall semesters of fiscal years 2018-2022:
Resident Program Fall Headcount
1
Fall Semester:
2017
2018
2019
2020
2021
Undergraduate
13,785
13,560
13,117
12,688
13,516
Graduate
2
1,764 1,860 1,812 1,832 1,948
Total
15,549
15,420
14,929
14,520
15,464
Notes:
19
1. Fall semester headers correspond to the fiscal year. For example Fall semester 2021 is for the
2021-22 fiscal year.
2. Includes the graduate students enrolled in the Liberty University College of Osteopathic Medicine,
the Liberty University School of Law, and the Rawlings School of Divinity.
The following table provides Liberty University Online Programs annual student headcount
information reflecting the total number of full-time and part-time students enrolled in Liberty University
Online Programs during each of the past five fiscal years:
Liberty University Online Programs Annual Headcount
Fiscal Year:
2018
2019
2020
2021
2022
Undergraduate
44,937
46,921
51,179
50,477
50,060
Graduate
40,911
48,382
56,642
63,476
64,726
Total
85,848
95,303
107,821
113,953
114,786
Approximately 39% of the University’s resident student enrollment by annual headcount for the
2021-2022 academic year were Virginia residents; however, the University has resident students from all
50 states, the District of Columbia, and numerous foreign countries.
The University maintains an active student retention program designed to assist the student body
in adjusting to life at the University. Although the University believes its efforts are generally successful,
students decide to leave the University for different reasons. For the Fall periods 2016-2017 to 2020-2021
resident student retention rates for undergraduate students, graduate students and freshman to
sophomore only were as follows:
Resident Undergraduate, Graduate and Freshman Fall-Fall Retention Rates
Fall to Fall Periods
Undergraduate
Graduate
Freshmen
Fall 2020 to Fall 2021 (FY22)
86.6%
82.4%
85.5%
Fall 2019 to Fall 2020 (FY21)
85.8%
83.6%
85.9%
Fall 2018 to Fall 2019 (FY20)
84.6%
81.1%
86.9%
Fall 2017 to Fall 2018 (FY19)
85.6%
79.4%
86.6%
Fall 2016 to Fall 2017 (FY18)
85.8%
82.4%
87.4%
The six-year graduation rate for full-time, first-time undergraduate students who
entered the University in Fall 2015 seeking an bachelor degree was 65%.
D. Student Applications and Academic Quality
Data on the number of residential applications, acceptances, and matriculants at the
University for the Fall Semesters of fiscal years 2018-2022 are set forth in the following table:
Applicants, Acceptances, and Matriculants
1
20
Fiscal Year
2018
2019
2020
2021
2022
Fall Semester
Fall 2017
Fall 2018
Fall 2019
Fall 2020
Fall 2021
Freshmen
Applicants
16,268
13,726
22,323
8,790
9,152
Acceptances
6,354
7,011
7,397
8,550
9,083
Matriculants
3,114
3,143
3,160
3,257
3,599
% of students accepted from applications
39.1%
51.1%
33.1%
97.3%
99.3%
% of students matriculated from students accepted
49.0%
44.8%
42.7%
38.1%
39.7%
Transfer
2
Applicants
5,192
4,040
6,043
2,019
1,988
Acceptances
2,475
1,705
1,848
1,945
1,920
Matriculants
1,019
843
765
1,018
946
% of students accepted from applications
47.7%
42.2%
30.6%
96.3%
96.6%
% of students matriculated from students accepted
41.2%
49.4%
41.4%
52.3%
49.3%
Graduate
3,4
Applicants
3,307
3,744
3,744
1,147
1,060
Acceptances
908
1,002
1,036
1,048
963
Matriculants
406
394
323
412
361
% of students accepted from applications
27.5%
26.8%
27.7%
91.4%
90.8%
% of students matriculated from students accepted
44.7%
39.3%
31.2%
39.3%
37.5%
Law
3, 5
Applicants
254
318
347
518
607
Acceptances
163
187
190
287
351
Matriculants
71
70
84
110
133
% of students accepted from applications
64.2%
58.8%
54.8%
55.4%
57.8%
% of students matriculated from students accepted
43.6%
37.4%
44.2%
38.3%
37.9%
Seminary
3,6
Applicants
558
572
581
171
145
Acceptances
191
205
162
169
142
Matriculants
103
117
54
80
55
% of students accepted from applications
34.2%
35.8%
27.9%
98.8%
97.9%
% of students matriculated from students accepted
53.9%
57.1%
33.3%
47.3%
38.7%
College of Osteopathic Medicine
3
Applicants
2,431
3,166
3,823
3,703
4,421
Acceptances
324
296
308
351
394
Matriculants
156
159
153
160
162
% of students accepted from applications
13.3%
9.3%
8.1%
9.5%
8.9%
% of students matriculated from students accepted
48.1%
53.7%
49.7%
45.6%
41.1%
21
Notes:
1. In connection with this year’s Annual Disclosure (FY22), the University implemented a new methodology to
retrieve the number of “Freshman Applicants” in the data retrieved for the FY21 and FY22 Survey Years (that is,
the “Fall Semester” “Fall 2020” and “Fall 2021” data). The University’s “Official Application,” which includes a
formal certification that the individual acknowledges and agrees the individual is applying to the University, does
not require the students to submit high school transcripts, test scores (where required), or an essay (where
required). Applicants submit such information at a later time and admissions decisions are made on a rolling
basis. Some individuals who complete the “Official Application” formally withdraw or otherwise never submit the
information. The “Fall 2019” data captured the total number of “Official Applications.” For the Fall 2020 and Fall
2021 data, the University implemented a methodology to capture only “Official Applications” that received a
decision of “accept” or “reject” (the University does not have a waitlist).
2. “Transfer” consists of residential undergraduate transfer applicants. In connection with this year’s Annual
Disclosure (FY22), the University implemented a change in methodology to retrieve the number of applicants for
the Fall 2020 and Fall 2021 data consistent with note 1.
3. “Graduate,” “Law,” “Seminary,” and “College of Osteopathic Medicine” consists of resident applicants to the
University’s law school, seminary, college of osteopathic medicine, and other graduate programs. In connection
with this year’s Annual Disclosure (FY22), the University implemented a change in methodology to retrieve the
number of applications for the Fall 2020 and Fall 2021 data consistent with note 1. Such change affected only
the data reported for the seminary and other graduate programs (i.e., the change did not affect the data
reported for the law school of college of osteopathic medicine).
4. Excludes the Liberty University School of Law, graduate programs in the Rawlings School of Divinity, and the
Liberty University College of Osteopathic Medicine.
5. Includes Juris Doctorate program in the Liberty University School of Law.
6. Includes all professional and graduate programs in the Rawlings School of Divinity.
The University continues to enroll students of increasingly high academic quality. The
Educational Testing Service Scholastic Aptitude Test (SAT) scores, the American College Testing
Program (ACT) scores, and the high school grade point averages for first-time incoming resident
freshman students for the fall semesters of the past five fiscal years is set forth in the following
table:
College Entrance Examinations
Fiscal Year
2018
2019
2020
2021
2022
ACT Composite
24
24
24
25
25
SAT Average
1145
1125
1150
1149
1155
High School GPA
3.49
3.43
3.53
3.53
3.54
E. Tuition and Fees
Undergraduate tuition and fees for full-time study for the past four academic years and
the current academic year are set forth in the following table:
Academic Year
Tuition
1
Fees
2
Room and
Board
3
Total
Cost
%
Change
2017-2018
22,880
1,060
8,040
31,980
3.76%
2018-2019
23,800
1,110
8,380
33,290
4.10%
2019-2020
23,800
1,110
8,380
33,290
0.00%
2020-2021
23,800
1,110
8,700
33,610
1.00%
2021-2022
23,800
1,110
8,900
33,810
1.00%
22
Notes:
1. Tuition is based on 18 credit hour maximum per semester. The charge for enrollment in
more than 18 credit hours is $815 per credit hour for the 2021-2022 academic year.
2. Reflects annual activity and health fees.
3. Reflects base room and board. Room and board rates can vary depending on the housing
and meal plan selection made by the student.
Professional school tuition for full-time resident students for the past four academic
years and the current year is shown in the following table:
Tuition for Full-Time Study at Professional Schools
Academic Year
Law
Seminary
Medical
2017-2018
32,994
5,500
46,000
2018-2019
34,672
5,700
47,000
2019-2020
35,712
5,700
47,000
2020-2021
36,782
5,700
47,000
2021-2022
37,885
5,700
47,000
Undergraduate students enrolled full-time or part-time in programs offered through
Liberty University Online Programs pay tuition on a credit hour basis plus applicable fees. For
Fall 2021 (Fiscal Year 2022), the rate for full-time and part-time students was $390 and $455 per
credit hour, respectively. Students in the University’s graduate programs (full-time or part-time,
resident or online) also pay tuition on a credit hour basis plus applicable fees based on the
degree program. For example, the tuition for Fall 2021 (Fiscal Year 2022) for non-seminary
master’s and doctorate programs ranged from $545 to $650 per credit hour. Full-time students
enrolled in certain master’s programs at the seminary pay tuition at a block rate, plus applicable
fees. The block rate for Fall 2021 (Fiscal Year 2022) was $2,850 for resident students and $2,750
for online students.
The University expects that tuition, fees, and room and board will increase as the
market allows.
F. Financial Aid
The University participates in certain federal and state student financial aid programs
and offers certain scholarships funded principally through institutional resources. The various
types of aid available to students of the University are summarized as follows:
Federal Student Aid. The federal student aid programs available to students of the
University include Pell Grants, Supplemental Educational Opportunity Grants, Iraq and
Afghanistan Service Grants, TEACH Grants, Federal Direct Loans, PLUS Loans, and the Work-
Study Program. Effective Fall 2010, the University is using the William D. Ford Federal Direct
Loan Program for all loans made directly from the U.S. Department of Education as lender.
23
State Student Aid. Students of the University who are domiciliary residents of the
Commonwealth of Virginia may be eligible for state student aid made available through the
Tuition Assistance Grant Program, and the Two-Year College Transfer Grant.
Institutional Student Aid. The scholarship programs offered by the university are made
available to students with financial need or with abilities in athletics, music and academics, to
students whom the University believes are compatible with the general philosophy of the
University and to employees of the University and their dependents. A goal of such programs is
to attract and retain a student body that will enhance the philosophical purpose of the
University.
For the year ended June 30, 2022, financial aid was awarded and paid to approximately
88% of all students totaling approximately $1.37 billion. Financial aid awards are typically
packaged as a combination of federal, state and university-funded loans, grants and
scholarships. Awards from institutional sources (non-federal and non-state) equated to
approximately 25% of the University’s gross tuition and fees revenue for fiscal year 2022. These
awards were approximately 23% of the total amount of financial aid distributed in fiscal year
2022.
The total amount of financial aid awarded and paid by the University to students during
a fiscal year may exceed the University’s total revenues for that fiscal year. This occurs when a
portion of the financial aid award is distributed or refunded to students, parents and third
parties after the students’ direct expenses (such as tuition, fees and on campus room and board)
are fully paid. A large portion of these refunds is then used by the students to pay for other
educationally related expenses such as travel, books, supplies, rent (for off- campus students)
and miscellaneous purchases. For fiscal year 2022, approximately $436 million was refunded to
students, parents or third parties by the University.
The financial assistance provided to the University’s students from University and non-
University sources for the five award years ended June 30, 2022 is described in the following
table:
Financial Aid to Students
1, 2
Award Year
2018
2019
2020
2021
2022
24
University Sources:
Unrestricted Funds
252,580,373
271,213,058
280,117,759
305,229,045
310,859,218
Restricted Funds
497,683
598,357
819,104
992,654
825,328
Total Scholarships
253,078,056
271,811,415
280,936,863
306,221,699
311,684,546
Loans to Students:
Federal Loan Funds
617,229,478
667,089,029
736,161,645
739,958,968
733,061,256
Private Loan Funds
29,433,797
35,870,526
41,062,973
41,349,965
41,750,287
Total Student Loans
646,663,275
702,959,555
777,224,618
781,308,933
774,811,543
Other Funds:
VA Tuition Asst. Grant
16,428,619
16,190,123
17,146,673
16,312,425
16,127,364
PELL Grant
104,330,914
106,978,131
112,024,762
111,129,380
109,159,461
Other
81,854,959
92,076,138
127,520,521
120,395,750
157,830,360
Total Other Funds
202,614,492
215,244,392
256,691,956
247,837,555
283,117,175
Total Financial Aid
1,102,355,823
1,190,015,362
1,314,853,437
1,335,368,187
1,369,613,274
Notes:
1. The numbers in each column may not equal totals due to rounding.
2. Amounts for financial aid award years include adjustments that may have been made after the end of the
applicable fiscal year and therefore are not necessarily the same as amounts recorded for financial
statement purposes at June 30 of each year.
The University and its students rely on a substantial amount of support from the federal
and state student financial aid assistance programs. If a significant reduction on the level of
federal and state assistance were to occur, such reduction could have a material adverse effect
on the University and its operations. Amounts received and expended by the University under
various federal and state financial aid assistance programs are subject to audit by various
federal and state agencies and therefore subject to adjustment. Non-compliance with federal or
state requirements relating to student assistance programs could result in the University’s loss
of eligibility to participate in those programs.
25
IV. FINANCES
A. Financial Condition
1. Accounting and Financial Statements
The table below provides information derived from the University’s audited
consolidated statements of financial position and statements of activities for the four years
ended June 30, 2018 – 2021, and the audited consolidated statements of financial position and
statements of activities for the fiscal year ending June 30, 2022. The financial information below
for fiscal years 2022 and 2021 should be read in conjunction with the University’s audited
consolidated financial statements as of June 30, 2022 set forth in Appendix A. For a description
of the University’s significant accounting policies, see Note 2 of the Notes to the Consolidated
Financial Statements. Except as disclosed herein, since June 30, 2022, there has been no
material adverse change in the consolidated financial condition or consolidated changes in net
assets of the University.
The University will post on the Municipal Securities Rulemaking Board’s Electronic
Municipal Market Access system (“EMMA”) at http://emma.msrb.org
.
26
1. The numbers in each column may not equal totals due to rounding.
Consolidated Statements of Financial Position Post FASB ASU 2016-14
(in thousands)
1
For Fiscal Years Ended June 30,
2018
2019
2020
2021
2022
Assets:
Cash and cash equivalents
$ 192,183
$ 272,129
$ 340,553
$ 414,330
$427,167
Accounts receivable, less allowances for doubtful
accounts
39,338
67,658
40,540
36,614
51,692
Accounts receivable, sale of television spectrum
0
0
0
-
-
Accounts receivable from related organizations
133
507
271
898
2,367
Notes receivable
1,043
3,007
2,972
5,301
5,010
Contributions receivable, net
0
0
8
417
393
Other prepaid expenses and other assets
42,099
41,370
35,903
29,413
58,934
Investments, at fair value
1,277,754
1,435,245
1,530,514
1,995,764
1,998,681
Investment in joint venture and real estate
0
134,579
155,482
164,903
156,532
Property, plant, and equipment, net
1,262,242
1,175,230
1,267,639
1,288,774
1,301,762
Total assets
2,814,792
3,129,725
3,373,882
3,936,414
4,002,538
Liabilities:
Accounts Payable:
Vendors
42,992
25,311
20,490
21,315
24,999
Other
9,135
8,644
7,834
8,905
7,943
Accrued liabilities
15,923
29,158
57,534
52,170
59,779
Accrued interest payable
3,452
3,413
3,537
2,739
2,712
Deferred revenue and deposits
127,815
132,184
145,710
163,833
147,010
Gift annuity payable
28,224
30,343
27,826
27,421
24,894
Liability under split interest agreements
1,297
1,220
1,181
752
785
Other long term liabilities
409
215
2,460
3,346
15,891
Long-term debt
205,053
202,536
197,590
194,994
191,543
Total liabilities
434,300
433,024
464,162
475,475
475,556
Net Assets (FASB ASU 2016-14)
Without donor restriction
2,360,601
2,672,904
2,886,772
3,429,256
3,493,969
With donor restriction
19,891
23,797
22,948
31,683
33,013
Total net assets
2,380,492
2,696,701
2,909,720
3,460,939
3,526,982
Total liabilities and net assets
$ 2,814,792
$ 3,129,725
$ 3,373,882
$ 3,936,414
$4,002,538
Notes:
27
2. Summary of Consolidated Financial Statements
Consolidated Statements of Activities Post FASB ASU 2016-14
(in thousands)
1
2018
2019
2020
2021
2022
Revenues:
Tuition and fees:
Gross tuition and fees
$ 948,691
$ 1,107,638
$ 1,182,553
$ 1,276,921
$ 1,335,116
Institutional scholarships
(229,519) (277,655) (293,983) (316,672) (333,676)
Tuition and fees, net
$ 719,172
$ 829,983
$ 888,570
$ 960,249
$ 1,001,440
Contributions of cash and other financial assets
$ 22,824
$ 15,110
$11,181
10,279
13,005
Contributions of nonfinancial assets
-
-
-
257
727
Grants and contracts
4,028
8,992
5,239
33,474
15,442
Auxiliary services
82,896
89,074
82,673
85,637
95,683
Other sources
67,927
46,389
55,555
63,405
84,151
Net assets released from restrictions
- - - - -
Total revenues
$ 896,847
$ 989,548
$1,043,218
$1,153,301
$1,210,448
Operating Expenses:
Instruction
$ 194,158
$ 234,922
$260,500
$283,121
$325,355
Academic support
66,651
71,455
75,729
84,712
85,186
Student services
185,755
201,027
227,429
242,942
271,618
Auxiliary services
80,061
82,054
77,565
77,752
82,452
Public services
13,745
13,947
11,507
15,772
18,120
Institutional support
136,553
119,619
148,033
134,055
157,240
Research
1,334 1,481 1,893 1,490 1,657
Total operating expenses
$ 678,257
$ 724,505
$ 802,656
$ 839,844
$ 941,628
Changes in net assets from operations
$ 218,590 $ 265,043 $ 240,562 $ 313,457 $ 268,820
Non-operating revenue (expense):
Contribution to endowments
$ 2,027
$ 239
$23
$133
$82
Investment income, net
11,572
9,519
12,799
4,443
27,471
Realized and unrealized gains, net
39,575
42,248
(42,166)
232,225
(212,665)
Gain on sale of television spectrum
-
-
-
-
-
Change in split interest agreement
4,718 (840) 1,801 11,531 (8,074)
Impairment of long-lived assets
- - - - (9,591)
Goodwill impairment
- - - (10,570) -
Changes in net assets from non-operating
activities
$ 57,892 $ 51,166 $ (27,543) $ 237,762 $ (202,777)
Changes in net assets
$ 276,482 $ 316,209 $213,019 $551,219 $66,043
Net Assets, beginning of year
2,104,010
2,380,492
$2,696,701
$2,909,720
$3,460,939
Net assets, end of year
$ 2,380,492
$ 2,696,701
$2,909,720
$3,460,939
$3,526,982
28
Notes:
1 The numbers in each column may not equal totals due to rounding.
3. Indebtedness
At June 30, 2022, the University had outstanding long-term indebtedness of
approximately $193 million consisting of taxable bonds issued in January 2012 by Liberty
University (“Series 2012 Bonds”), and taxable bonds issued in December 2019 by Liberty
University (“Series 2019 Bonds”). In fiscal year 2011, the University refinanced approximately
$47.8 million of its long-term debt and repaid $8.1 million in loans under its remaining term
notes using a portion of the $119.7 million in proceeds from the issuance of the Series 2010
Bonds. As part of the debt refinancing, the University closed its $50.0 million bank credit line.
Liens on University property associated with retired debt were released.
The outstanding long-term indebtedness and capital leases of the University as of June
30, 2021 and June 30, 2022 were as follows:
June 30, 2022
June 30, 2021
(in thousands)
1
Series 2012 bonds
$100,000
$100,000
Series 2019 bonds
93,410
96,990
Total
$193,410
$196,990
Notes:
1. The numbers in each column may not equal totals due to rounding.
Cash paid for interest was $8.2 million and $9.1 million for the years ended June 30,
2022 and 2021, respectively. The annual interest payment on the Series 2012 Bonds is $5.1
million. The annual interest payment on the Series 2019 Bonds is $3.1 million.
Since June 30, 2015, the University was approved to issue $150,000,000 in commercial
paper in July 2015 and subsequently issued $85,000,000. As of June 30, 2022, the University
had no outstanding commercial paper.
29
4. Net Assets
The following table shows the net assets available to the University, classified as without
donor restrictions, perpetual endowments, purpose restricted net assets, and time restricted
net assets, for the three fiscal years ended June 30, 2020-2022. Liberty University, Inc. elected
to early adopt FASB ASU 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial
Statements of Not-for-Profit-Entities in 2018.
Net Assets
(in thousands)
1, 2
FY 2020
FY 2021
FY 2022
Without Donor Restrictions:
Quasi endowment
$1,697,867
$2,136,296
$2,151,153
Undesignated
1,188,905
1,292,960
1,342,816
Total
2,886,772
3,429,256
3,493,969
Perpetual Endowments
3
:
Scholarships
12,111
12,254
12,328
General University
3,557
3,558
3,557
Seminary
43
43
43
Endowment requiring earnings added
162
199
169
Total
15,873
16,054
16,098
Purpose Restricted Net Assets
3
:
Scholarships
6,878
9,123
7,650
Athletics
424
1,333
2,646
Capital projects
252
761
2,256
Benevolence and missions and other
802
4,494
4,859
Reserves on net assets (underwater)
(1,400)
(772)
(859)
Total
6,956
14,939
16,552
Time Restricted Net Assets
3
:
Split interest agreements
119
689
363
Total
119
689
363
Total net assets with donor
restrictions
$22,948
$31,682
$ 33,013
Notes:
2. The numbers in each column may not equal totals due to rounding.
3. The amounts included as net assets with donor restrictions
30
B. Contributions and Gifts
Net contributions and gifts to the university for the five fiscal years ended June 30, 2017-2021
are set forth in the following table. Liberty University, Inc. elected to early adopt FASB ASU 2016-14,
Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit-Entities in 2018.
Contributions, Net, and Donated Gifts in Kind
(in thousands)
1
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
Without donor designation
$ 21,386
$ 11,247
$ 9,844
$ 4,588
$ 8,165
With donor designation
1,438
3,863
1,337
5,948
5,567
Contributions to endowment
2,027
239
23
133
82
Total Contributions, Net, and Donated Gifts in Kind
$ 24,851
$ 15,349
$ 11,204
$ 10,669
$13,814
Notes:
1. The numbers in each column may not equal totals due to rounding.
For the year ended June 30, 2020, approximately 28% of contributions were made by two major
donors. For the year ended June 30, 2019, approximately 33% of contributions were made by one major
donor. This information is no longer disclosed within the University’s audited financial statements and
will not be updated going forward.
31
C. Investments
On June 30, 2011, the Board of Trustees of Liberty University and the President’s Office adopted
an Investment Policy Statement (IPS) declaring that the fundamental objective of the Board and the
President is to strengthen Liberty’s financial position in order to fulfill its primary function as an
educational institution. Specifically, the ultimate goal is to provide a framework for the continuation of
core University operations in the event of a major downturn while maintaining essential planned capital
projects. The IPS will provide a structure that will allow for sufficient flexibility in the management
process to capture investment opportunities as they may occur, while setting reasonable parameters to
provide prudence and care in the execution of the investment program. The Executive Committee will
direct any drawdown of Endowment funds.
Beginning fiscal year ended June 30, 2022, only the Board of Trustees has the authority to
designate net assets for quasi endowment from other net assets without donor restrictions. Also
beginning in fiscal year 2022, the Board of Trustees must approve all withdrawals from the endowment.
As of June 30, 2022, the University’s investment plus cash and cash equivalents totaled
approximately $2.4 billion and investments were diversified among a variety of asset classes as set forth
in the table below:
Asset Allocation
(in thousands)
Market Value at
Market Value at
Investment
June 30, 2022
June 30, 2021
Investment Portfolio:
1
Cash and cash equivalents
2
$340,842
$152,088
Publicly traded equities
563,607
735,790
Traditional fixed income
718,861
766,740
Hedge funds
196,405
200,723
Private equity
44,312
49,129
Commodity/other alternatives
134,654
91,294
Total
$1,998,681
$1,995,764
Cash and cash equivalents
427,167
414,330
Total
$2,425,848
$2,410,094
The University maintains cash balances at several financial institutions. Total cash balances at
each institution are insured by the Federal Deposit Insurance Corporation up to $250,000 for interest
bearing accounts. At June 30, 2022 and 2021, the University had uninsured cash and cash equivalents
balances totaling approximately $100.1 and $91.8 million, respectively. The University minimizes risk by
periodically evaluating the stability of the financial institutions.
Notes:
1. Investments are recorded at fair value based on quoted market prices or estimated fair value
pursuant to ASC 820.
32
2. Cash equivalents utilized within a managed portfolio are accounted for as investments.
3. The numbers in each column may not equal totals due to rounding.
The market value columns include the University’s ownership interest in certain alternative
investments. As a practical expedient, the University uses its ownership interest in the market value
to determine the fair value of all alternative investments that do not have a readily determinable fair
value and have financial statements consistent with the measurement principles of an investment
company or have the attributes of an investment company.
D. Endowment Assets
The university’s endowment includes both donor-restricted endowment funds and quasi-
endowment funds. While quasi-endowment assets can be utilized by the University, if necessary, for
operating expenditures at the discretion of the Board of Trustees, the assets contributed to the
University as donor-restricted endowments generally cannot be so utilized.
The market values of the University’s endowment assets for the five years ending June 30, 2017-
2021 are summarized below. Liberty University, Inc. elected to early adopt FASB ASU 2016-14, Not-for-
Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit-Entities in 2019.
Endowed Assets
(in thousands)
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
Without Donor Restrictions
$ 1,416,485
$ 1,570,529
$ 1,697,867
$ 2,136,296
$2,151,153
With Donor Restrictions
16,479
17,390
16,596
20,303
18,294
Total
$ 1,432,964
$ 1,587,919
$ 1,714,463
$ 2,156,599
$ 2,169,447
33
APPENDIX A: Audited Consolidated Financial Statements for Fiscal Year
Ending June 30, 2022
The report accompanying these financial statements was issued by
BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of
BDO International Limited, a UK company limited by guarantee.
Liberty University, Inc.
Consolidated Financial Statements
and Supplementary Information
Years Ended June 30, 2022 and 2021
Liberty University, Inc.
Consolidated Financial Statements and Supplementary Information
Years Ended June 30, 2022 and 2021
Liberty University, Inc.
Contents
Independent Auditor’s Report 3-5
Consolidated Financial Statements
Consolidated Statements of Financial Position 7
Consolidated Statements of Activities 8
Consolidated Statements of Cash Flows 9
Notes to Consolidated Financial Statements 10-38
Supplementary Information
Title IV Strength Factor Score 40
Notes to Title IV Strength Factor Score 41
Schedules of Financial Position – Excluding Subsidiaries 42
Tel: 919-754-9370
Fax: 919-754-9369
www.bdo.com
421 Fayetteville Street
Suite 300
Raleigh, NC 27601
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the
international BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
3
Independent Auditor’s Report
To the Board of Trustees
Liberty University, Inc.
Lynchburg, VA
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Liberty University, Inc. and its
subsidiaries (the “University”), which comprise the consolidated statement of financial position
as of June 30, 2022 and 2021, and the related consolidated statements of activities and cash flows
for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the University as of June 30, 2022 and 2021, 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.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (“GAAS”) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are required to be
independent of the University and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether
there are conditions or events, considered in the aggregate, that raise substantial doubt about
the University’s ability to continue as a going concern within one year after the date that the
consolidated financial statements are issued or available to be issued.
4
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the consolidated financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, and design and perform audit procedures
responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements.
Obtain an understanding of internal control relevant to the audit 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 University’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the University’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial
statements as a whole. The Title IV Strength Factor Score and Schedules of Financial Position –
Excluding Subsidiaries are presented for purposes of additional analysis and are not a required
part of the consolidated 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 consolidated financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the consolidated financial statements
and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the consolidated financial
5
statements or to the consolidated 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 consolidated financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 18, 2022 on our consideration of the University’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 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 University’s 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 the University’s internal
control over financial reporting and compliance.
November 18, 2022
Consolidated Financial Statements
June 30, 2022 2021
Asset
Cash and cash equivalents 427,167,267$ 414,330,189$
Accounts receivable, less allowance for doubtful accounts of $7,534,627
and $6,531,684 as of June 30, 2022 and 2021, respectively 51,692,290 36,613,529
Amounts receivable from related parties 2,366,928 897,860
Notes receivable, less allowance for bad debt of $32,539 and $315,954
as of June 30, 2022 and 2021, respectively 5,009,867 5,301,138
Contributions receivable, net 392,741 416,840
Prepaid expenses and other assets 58,934,561 29,412,722
Investments, at fair value 1,998,680,888 1,995,763,951
Investments in real estate 156,531,598 164,903,165
Property, plant, and equipment, net 1,301,761,695 1,288,774,178
Total Assets 4,002,537,835$ 3,936,413,572$
Liabilities and Net Assets
Liabilities
Accounts payable - vendors 24,998,644$ 21,315,258$
Accounts payable - other 7,942,974 8,904,468
Accrued liabilities 59,779,209 52,169,724
Accrued interest payable 2,712,388
2,739,190
Deferred revenue and deposits 147,010,232
163,833,426
Gift annuities payable 24,893,937
27,420,466
Liability under split interest agreements 784,693
751,930
Other long-term liabilities 15,891,212
3,346,245
Long-term debt, net 191,542,554
194,994,010
Total Liabilities 475,555,843 475,474,717
Net Assets
Without donor restrictions
Quasi endowment 2,151,153,066 2,136,296,121
Undesignated 1,342,815,626 1,292,960,275
Total net assets without donor restrictions 3,493,968,692
3,429,256,396
With donor restrictions
Perpetual endowments 16,097,768 16,054,181
Purpose restricted 16,552,034 14,939,235
Time restricted 363,498 689,043
Total net assets with donor restrictions 33,013,300
31,682,459
Total Net Assets 3,526,981,992
3,460,938,855
Total Liabilities and Net Assets 4,002,537,835$ 3,936,413,572$
Consolidated Statements of Financial Position
Liberty University, Inc.
See notes of accompanying consolidated financial statements.
7
Without Donor With Donor Without Donor With Donor
Years Ended June 30,
Restrictions Restrictions Total Restrictions Restrictions Total
Operating Revenue
Tuition and fees, less institutional scholarships of
$333,676,018 and $316,672,358, respectively $ 1,001,440,138 $ - $ 1,001,440,138 $ 960,248,884 $ -
$ 960,248,884
Contributions of cash and other financial assets 7,437,902 5,567,334 13,005,236 4,331,182 5,948,233 10,279,415
Contributions of nonfinancial assets 726,661 - 726,661
256,862 - 256,862
Grants and contracts 15,441,954 - 15,441,954 33,472,989 500 33,473,489
Auxiliary services 95,683,086 - 95,683,086 85,637,298 - 85,637,298
Other sources 84,112,499 38,953 84,151,452
63,365,921 38,564 63,404,485
Net assets released from restrictions 2,095,186 (2,095,186) - 1,667,232 (1,667,232) -
Total operating revenue 1,206,937,426 3,511,101 1,210,448,527 1,148,980,368 4,320,065 1,153,300,433
Operating Expense
Instruction 325,354,620 - 325,354,620 283,121,093 - 283,121,093
Academic support 85,185,660 -
85,185,660 84,711,836 - 84,711,836
Student services 271,618,365 - 271,618,365 242,942,435 - 242,942,435
Auxiliary services 82,452,416 - 82,452,416 77,751,576 -
77,751,576
Public services 18,120,240 - 18,120,240
15,772,374 - 15,772,374
Research 1,657,183 - 1,657,183 1,489,594 - 1,489,594
Institutional support 157,239,796 - 157,239,796
134,054,795 - 134,054,795
Total operating expense 941,628,280 - 941,628,280 839,843,703 - 839,843,703
Changes in net assets from operations 265,309,146 3,511,101 268,820,247 309,136,665 4,320,065 313,456,730
Nonoperating Revenue (Expense)
Contributions to endowments - 82,052 82,052 - 133,450 133,450
Investment income (loss), net 26,776,542 693,973 27,470,515 4,546,479 (103,888) 4,442,591
Realized and unrealized (losses) gains, net (210,033,803) (2,630,740) (212,664,543) 228,410,264 3,814,553 232,224,817
Change in split interest agreements (7,748,792) (325,545) (8,074,337) 10,961,353 570,053 11,531,406
Impairment of long-lived assets (9,590,797) - (9,590,797) - -
-
Goodwill impairment - - - (10,570,036) - (10,570,036)
Changes in net assets from nonoperating activities (200,596,850) (2,180,260) (202,777,110) 233,348,060 4,414,168 237,762,228
Changes in net assets 64,712,296 1,330,841 66,043,137 542,484,725 8,734,233 551,218,958
Net Assets, beginning of year 3,429,256,396 31,682,459 3,460,938,855 2,886,771,671 22,948,226 2,909,719,897
Net Assets, end of year $ 3,493,968,692 $ 33,013,300 $ 3,526,981,992 $ 3,429,256,396 $ 31,682,459
$ 3,460,938,855
See notes of accompanying consolidated financial statements.
Liberty University, Inc.
Consolidated Statements of Activities
2022 2021
8
Years Ended June 30, 2022 2021
Cash Flows From Operating Activities
Changes in net assets $ 66,043,137 $ 551,218,958
Adjustments to reconcile changes in net assets to net cash
provided by operating activities:
Depreciation of property, plant and equipment
61,325,560 61,745,703
Impairment of long-lived assets 9,590,797 -
Amortization of debt issuance costs and discount on long-term debt 128,544 124,070
Change in value of split-interest agreements 8,074,337 (11,531,406)
Bad debt expense on accounts receivable
6,872,753 10,260,448
Donations of property, plant and equipment (706,308) (222,583)
Realized and unrealized (gains) losses on investments, net 212,664,543 (232,224,817)
Loss on disposal of property, plant, and equipment
589,429 324,463
Contributions to endowment (82,052) (133,450)
Goodwill impairment -
10,570,036
Net (increase) decrease in operating assets:
Accounts receivable (21,951,514) (6,334,431)
Amounts receivable from related parties (1,469,068) (626,610)
Contributions receivable 24,099 (409,340)
Prepaid expenses and other assets (29,521,839) (4,079,500)
Net (decrease) increase in operating liabilities:
Accounts payable - vendors and other 2,721,892 1,895,702
Accrued liabilities 7,609,485 (5,363,693)
Accrued interest payable (26,802) (797,370)
Lease liability 12,668,691 959,941
Deferred revenue and deposits (16,823,194) 18,123,583
Gift annuities payable (1,873,290) 309,767
Liability under split interest agreements 57,251 (401,592)
Net cash provided by operating activities 315,916,451 393,407,879
Cash Flows From Investing Activities
Proceeds from notes receivable 334,968
129,812
Issuances of notes receivable (43,696) (2,458,870)
Purchases of property, plant, and equipment (76,079,885) (95,170,760)
Proceeds from sale of property, plant, and equipment 664,456
2,766,463
Purchases of investments (789,036,645) (1,047,735,932)
Proceeds from sales and maturities of investments 565,380,828 826,242,495
Net cash used by investing activities (298,779,974) (316,226,792)
Cash Flows From Financing Activities
Payments on gift annuities (653,239) (715,555)
Payments on split interest agreements (24,488) (27,851)
Imputed interest on finance leases (123,724) (73,987)
Contributions to endowment 82,052 133,450
Payments on long-term debt (3,580,000) (2,720,000)
Net cash used by financing activities (4,299,399) (3,403,943)
Net increase in cash and cash equivalents 12,837,078 73,777,144
Cash and cash equivalents at beginning of year 414,330,189 340,553,045
Cash and cash equivalents at end of year $ 427,167,267 $ 414,330,189
Supplemental Disclosures of Cash Flow Information
Cash paid for interest $ 8,217,570 $ 9,055,668
Liberty University, Inc.
Consolidated Statements of Cash Flows
See notes of accompanying consolidated financial statements.
9
Liberty University, Inc.
Notes to Consolidated Financial Statements
10
1. Business and Basis of Presentation
Business
Liberty University, Inc. (the “University”) is a nonprofit institution of higher education, established
in 1971. The University is a Christian academic community in the tradition of evangelical institutions
of higher education, with the primary mission of providing quality collegiate education. The
University provides associate, baccalaureate, master, and doctoral programs for both liberal arts
and professional disciplines in residential and off-campus formats. These programs seek to transmit
and expand knowledge, as well as provide opportunities for research and service. The University is
accredited by the Southern Association of Colleges and Schools. The affairs of the University are
governed by the Board of Trustees.
Basis of Accounting
The accompanying consolidated financial statements have been prepared on the accrual basis of
accounting in accordance with generally accepted accounting principles in the United States of
America (“U.S. GAAP”). In accordance with this method of accounting, revenue is recognized in the
period in which it is earned, and expenses are recognized in the period in which they are incurred.
Principles of Consolidation
The consolidated financial statements include the accounts of Liberty University, Inc. and its
majority- and wholly-owned subsidiaries:
747 River Road, LLC – real estate property
Airport Plaza Holdings, LLC – retail shopping centers, classified as quasi-endowments
Burton Realty, LLCs – 6 LLC real-estate holdings, classified as quasi-endowments
C&C Aviation, LLC – provides charter air service to the University
CFA-Wards Road, LLC – created to hold Chick-fil-a parcel on Wards Road (currently inactive)
Collaborative Health Partners, LLC – holding company for MD Resource, LLC, and Legacy CHP
of Virginia, LLC, which provide back-office services to medical practices
Crossroads Investments, LLC – real-estate holdings, classified as quasi-endowments
Currus Holdings, LLC – investment holding company, classified as quasi endowments
Eleanor’s Bench, LLC – Cinematic Arts motion picture
Freedom Aviation, Inc. – C-corporation that provides charter air and repair and maintenance
services to the public
Ivy Hill Recreation, LLC – lake donated for various student activities (property sold April 16,
2019) – classified as quasi-endowments
Jerry Falwell Ministries, LLC – created to accept donations
Liberty Christian Academy, Inc. – a Christian, co-educational school for grades K-12, and
Early Learning Center for ages 2-4
Liberty Motion Picture, LLC – provides opportunities for students and former students to
produce motion pictures
Liberty Mountain Capital, Inc. – C-corporation – investment purposes, classified as quasi-
endowments
Liberty Mountain Medical Group, LLC – medical clinic
Liberty Ridge, LLC – created to hold and manage real estate rental property
Liberty Village Community Association, Inc – Homeowner’s Association for Liberty Ridge
Liberty University, Inc.
Notes to Consolidated Financial Statements
11
LU Candler’s Mountain Road Holdings, LLC – holds land and building
LU Candler’s Station Holdings, LLC – retail shopping center, classified as quasi-endowments
LU Plaza Holdings, LLC – retail shopping centers, classified as quasi-endowments
LU Wards Road Center Holdings, LLC – retail shopping center, classified as quasi endowments
LUCOM Graduate Medical Education Services, LLC – created to support LUCOM (currently
inactive)
Morning Star Broadcasting, LLC – provides broadcasting of Liberty University and other
athletics, weather, news to the Lynchburg community
Philanthropy Lynchburg, LLC – retail franchise
Red Tie Music, LLC – produces, publishes, and distributes music
Richmond Highway Properties (9 LLCs) – Owns several real estate parcels, classified as quasi
endowments
River Ridge Mall JV, LLC – retail shopping mall, classified as quasi endowments
Vertical Ventures, LLC – telecommunication assets
All significant intercompany transactions and balances have been eliminated in the consolidation.
2. Summary of Significant Accounting Policies
Cash and Cash Equivalents
The University considers all highly liquid investments purchased with an original maturity of three
months or less to be cash equivalents. Cash equivalents utilized within a managed portfolio are
accounted for as investments. All depository accounts of the University are with institutions insured
by the Federal Deposit Insurance Corporation (“FDIC”). Certain accounts are required to be
segregated. Included in cash and cash equivalents are short term treasury bills in the amount of
$331,046,899 and $323,827,805 as of June 30, 2022 and 2021, respectively. Although not insured by
the FDIC, these treasury bills are backed by the U.S. government. At times during the year, the
University maintains balances in financial institutions which exceed the federally insured limits. The
University minimizes this risk by periodically evaluating the stability of the financial institutions.
Amounts reported as cash and cash equivalents which exceeded the FDIC limits were $100,078,844
and $91,818,393 at June 30, 2022 and 2021, respectively.
Liquidity and Availability
As part of its liquidity management, the University has a policy to structure its financial assets to
be available as its general expenditures, liabilities, and other obligations come due. In addition, the
University invests cash in excess of daily operating funds in short-term investments such as treasury
bills, certificates of deposit, and money market funds.
The following schedule explains the University’s financial assets available to meet cash needs for
general expenditures within one year. The financial assets were derived from the total assets on
the consolidated statements of financial position by excluding the assets that are unavailable for
general expenditures in the next 12 months. The University seeks to maintain sufficient liquid assets
to cover one quarter of annual operating and capital expenditures.
Liberty University, Inc.
Notes to Consolidated Financial Statements
12
J
une 30, 2022
Cash and cash equivalents $ 427,167,267
Accounts and notes receivable, net 56,702,157
Investments 1,998,680,888
Less: Non-current portion of note receivable (4,702,901)
Less: Investments designated for quasi endowment (1,921,316,634)
Less: Investments designated for other purposes (77,056,592)
Less: Unfunded commitments (13,615,643)
Add: Endowment spending-rate distributions and appropriations 522,521
Financial assets available to meet cash needs for general
expenditures within one year of June 30, 2022 $ 466,381,063
J
une 30, 2021
Cash and cash equivalents $ 414,330,189
Accounts and notes receivable, net 42,638,370
Investments 1,995,763,951
Less: Non-current portion of note receivable (5,816,208)
Less: Investments designated for quasi endowment (1,903,939,464)
Less: Investments designated for other purposes (91,434,255)
Less: Unfunded commitments (24,593,883)
Add: Endowment spending-rate distributions and appropriations 413,575
Financial assets available to meet cash needs for general
expenditures within one year of June 30, 2021 $ 427,362,275
Accounts Receivable
Accounts receivable represents the amount receivable for tuition and other student fees and
expenses, trade accounts receivable, and investment property rent and income receivable. The
University provides for uncollectible accounts annually based on total write-offs from the preceding
three years. Bad debt totaled $7,442,214 and $10,260,448 for the years ended June 30, 2022 and
2021, respectively. The University’s allowance is calculated based on the average percentage of
revenue that is written-off per payor type. This methodology follows Accounting Standards Update
(“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). When accounts
from prior fiscal years are deemed uncollectible, or an accounts receivable balance for the current
fiscal year is greater than the associated revenue, they are charged against the allowance for
doubtful accounts through bad debt expense. ASC 606 indicates that revenue presented on the
statements of activities should only reflect the transaction price, or amount reasonably expected
to be collected. As a result, the portion of current year tuition and fees not expected to be collected
reduces revenue instead of increasing bad debt expense.
Liberty University, Inc.
Notes to Consolidated Financial Statements
13
Contributions Receivable and Contributions Revenue
Contributions, including unconditional promises to give, are recognized as revenue by the University
in the period received. Conditional promises to give are not recognized until the conditions on which
they depend are substantially met. Contributions of assets other than cash are recorded at their
estimated fair value at the date of gift. Contributions of works of art, historical treasures, and
similar assets held as part of collections are not recognized or capitalized. Horses and aircraft are
valued upon an appraisal performed by an independent party. Furniture and equipment are valued
either upon the invoiced amount reflective of fair market value, or upon an appraisal from an
independent party. Land is based on the fair market value of the proceeds from the sale of land.
Other assets are valued using the most readily available estimated value.
Prepaid Expenses and Other Assets
Prepaid expenses primarily consist of insurance, dues, subscriptions, and other expenditures that
are amortized over their useful lives. Other assets include right-of-use assets, inventories, vendor
deposits, and intangible assets.
Investments
Investments are recorded at estimated fair value. The fair values of investments are determined
based on quoted market prices or estimated fair values. Net investment income/(loss) is reported
in the accompanying consolidated statements of activities and consists of interest income, dividend
income, and realized and unrealized gains and losses less external and direct internal investment
expenses.
The University’s investment strategy incorporates certain financial instruments that involve, to
varying degrees, elements of market risk and credit risk. Management does not anticipate that losses
resulting from market or credit risks would materially affect the financial position of the University.
Investments in Real Estate
The University’s investments in real estate consist of land and buildings donated from various
individuals or purchased by the University for investment purposes. The University holds investments
in real estate at historical cost less depreciation. These investments are analyzed for impairment
each year based on current market conditions.
Property, Plant and Equipment
Property, plant and equipment consisting of land and land improvements, buildings, and furniture
and equipment are stated at cost at the date of acquisition or at fair value at the date of the gift,
less accumulated depreciation and amortization. Depreciation and amortization are recorded using
the straight-line method over the estimated useful lives of the assets, which range from 3 years for
furniture and equipment up to 60 years for certain buildings. Property and equipment held under
capital leases are amortized straight-line over the shorter of the lease term or estimated useful life
of the asset. Interest on outstanding debt is capitalized based on the balance of cumulative
payments made on construction in progress until the specified assets are ready for their intended
use. Capitalized interest is amortized over the useful life of the related asset.
Liberty University, Inc.
Notes to Consolidated Financial Statements
14
Deferred Revenue and Deposits
Student deposits consist primarily of student payments received for University summer and fall
sessions received during the current year. These payments are designated to be used in future
periods and will be recognized as revenue within one year.
Net Assets
The University’s net assets and its revenues, expenses, gains and losses are classified based on the
existence or absence of donor-imposed restrictions. Accordingly, net asset changes therein are
classified and reported as follows:
Without donor restrictions – Net assets available for use in general operations and not
subject to donor restrictions. During the year ended June 30, 2020, the University’s Board
of Trustees authorized the President and Senior Vice President of Finance and Investment
Management to designate net assets for quasi endowment from other net assets without
donor restrictions. Beginning fiscal year ended June 30, 2021, only the Board of Trustees has
this authority.
With donor restrictions – Net assets subject to donor-imposed restrictions. Some donor-
imposed restrictions are temporary in nature, such as those that will be met by the passage
of time or by purpose specified by the donor. Other donor-imposed restrictions are perpetual
in nature, where the donor stipulates that resources be maintained in perpetuity.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor-imposed restrictions and these restrictions are not met within the current
reporting period. Expenses are reported as decreases in net assets without donor restrictions.
Expirations and releases of 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 from net
assets with donor restrictions to net assets without donor restrictions (see Note 12). Donor
restrictions on gifts to acquire long-lived assets are considered met in the period the assets are
acquired or placed in service.
Methods Used for Allocation of Expenses to Programs and Supporting Services
The University allocates expenses on a functional basis to its various programs and supporting
services. The accompanying consolidated financial statements report certain categories of expenses
that are attributable to one or more program(s) or supporting service(s) of the University. These
expenses include utilities and maintenance, depreciation, interest, and information technology.
Utilities and maintenance, depreciation, and interest are allocated based on square footage.
Information technology is allocated based on estimates of time and effort and is reported in the
Compensation and benefits natural classification within the Analysis of Expense by Functional and
Natural Categories as discussed in Note 4.
Liberty University, Inc.
Notes to Consolidated Financial Statements
15
Revenue and Expense Classifications
The University classifies its revenues and expenses as operating or non-operating in the
accompanying consolidated statements of activities. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with the University’s
principle ongoing operations. Operating revenues include activities such as student tuition and fees,
contributions to University operations or capital projects, certain educational grants and contracts
for services, sales and services of auxiliary enterprises, and gains and losses on sale of operating
assets. Operating expenses are all expense transactions incurred other than those related to
investing activities. Non-operating revenues and expenses include transactions not related to the
principle operations of the University such as endowed gifts, investment income and expenses, gains
and losses on sale of non-operating assets, and changes in split interest agreements.
Income Taxes
The Internal Revenue Service has ruled that the University qualifies under Section 501(c)(3) of the
Internal Revenue Code and is, therefore, not generally subject to income taxes under present tax
laws. Management believes that any income tax liability resulting from unrelated business income
for the periods ended June 30, 2022 and 2021 would not have a significant impact on the University’s
results of activities. Certain subsidiaries of the University are taxed as separate entities. The impact
of taxes from taxable entities is not material to the accompanying consolidated financial statements
and therefore such information has not been itemized herein.
Concentration of Credit Risk
Financial instruments that potentially subject the University to a concentration of credit risk consist
of interest-bearing transaction accounts and accounts receivable. The University places its interest-
bearing transaction accounts with high credit quality financial institutions. Student receivables are
limited in risk due to the large number of students, those who pay in advance, and those who receive
grants and loans to cover tuition and related expenses.
Advertising Expenses
The University expenses advertising costs as incurred. Advertising expense totaled $20,856,281 and
$17,353,462 for the years ended June 30, 2022 and 2021, respectively
.
Use of Estimates
The University has made a number of estimates and assumptions relating to the reporting of assets,
liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities to prepare
the financial statements in conformity with U.S. GAAP. Actual results could differ from those
estimates and assumptions.
Liberty University, Inc.
Notes to Consolidated Financial Statements
16
Recent Accounting Pronouncements
In September 2020, the FASB issued ASU 2020-07, Presentation and Disclosures by Not-for-Profit
Entities for Contributed Nonfinancial Assets (“ASU 2020-07”) to increase transparency on how
contributed nonfinancial assets (also referred to as gifts-in-kind) received by nonprofits are to be
used and how they are valued. Under the standard, contributed nonfinancial assets will be presented
as a separate line in the statement of activities apart from contributions of cash and other financial
assets and specific disclosures will be required regarding the contributed nonfinancial assets. The
effective date for this standard is for fiscal years beginning after June 15, 2021. During the year
ended June 30, 2022, the University has retrospectively applied ASU 2020-07, disclosing
contributions of nonfinancial assets separate from cash and financial assets, and provides qualitative
information about these contributions of nonfinancial assets within the Note 19 to the consolidated
financial statements.
Reclassifications
Certain items in the 2021 consolidated financial statements and notes have been reclassified to
conform to the 2022 presentation. Such reclassifications had no impact on previously reported
changes in net assets or net asset balances.
3. Revenue
The University measures revenue from contracts with customers based on the consideration
specified in the contract and recognizes revenue as a result of satisfying its promise to transfer
goods or services in a contract with a customer using the following general revenue recognition five-
step model: (1) identify the contract; (2) identify performance obligations; (3) determine
transaction price; (4) allocate transaction price; (5) recognize revenue.
Disaggregation of Revenue from Contracts with Customers
ASC 606 requires that entities disclose disaggregated revenue information in categories (such as
type of good or service, geography, market, type of contract, etc.) that depict how the nature,
amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. ASC
606 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and
circumstances that pertain to the entity’s contracts with customers and that some entities may
need to use more than one type of category to meet with the objective for disaggregating revenue.
Liberty University, Inc.
Notes to Consolidated Financial Statements
17
The University’s disaggregated tuition and fees and auxiliary services revenues consisted of the
following:
Years Ended June 30, 2022 2021
Liberty University Online $ 913,838,952 $ 883,439,022
Residential 380,676,274 355,573,527
LUOA 40,600,930 37,908,693
Tuition and fees, gross $ 1,335,116,156 $ 1,276,921,242
Less: Institutional scholarships (333,676,018) (316,672,358)
Tuition and fees, net $ 1,001,440,138 $ 960,248,884
Years Ended June 30, 2022 2021
Student housing $ 54,452,008 $ 49,940,247
Food services 37,960,117 33,923,944
Retail operations and other auxiliary services 3,270,961 1,773,107
Auxiliary services revenue $ 95,683,086 $ 85,637,298
Judgements
The University earns revenue primarily through instruction. The University provides instruction to
students residentially, on its Lynchburg, Virginia campus, and online to students around the world.
The University serves both domestic and international students. The University recognizes this
revenue per day based on the start and end dates for each individual course. In addition to
instruction, the University also earns revenue through auxiliary services and other sources. These
sources of revenue can be disaggregated by whether there is a contract with a student or non-
student, or if there is no contract. The University recognizes non-student contracts based on the
date of the event or when the service is provided.
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to a
customer and is the unit of account under ASC 606. A contract’s transaction price is allocated to
each distinct performance obligation and recognized as revenue when, or as, the performance
obligation is satisfied. The University does not capitalize contract costs.
The performance obligations related to contracts with students involves providing instruction,
housing and dining (if applicable), and access to the University’s facilities and services throughout
the contract term. As a result, the performance obligation is satisfied over time ratably throughout
each contract’s applicable period.
The University enters into contracts that include various combinations of services, which are
generally capable of being distinct and are accounted for as separate performance obligations.
Liberty University, Inc.
Notes to Consolidated Financial Statements
18
Revenue is recognized in an amount that reflects the consideration the University expects to receive
in exchange for its services. Arrangements may include variable consideration in the form of tuition
discounts, scholarships, or institutional aid. For any such arrangements, the transaction price only
includes tuition and fees net of the awarded discounts or institutional aid. Refunds and withdrawals
have been deemed immaterial.
Contract Payment Terms
Before the beginning of each contract term, students are required to complete Financial Check-in
(“FCI”). During this process, they are presented with the total amount that is due from them for
the upcoming period. This amount is due in full upon completion of FCI when they electronically
sign their contract. However, students may opt-in to a payment plan to delay paying portions of
their tuition. The University does not consider the payment plan participation fees for this option
to represent a significant financing component because payments are due within 120 days.
Revenue recognition
The University recognizes revenue from contracts with students over the term or sub-term during
which their courses are offered. Each course has a set beginning and ending date. The University
recognizes revenue over time based on the number of days that have elapsed for each course.
4. Analysis of Expense by Functional and Natural Categories
Expenses by functional and natural classifications are as follows:
Academic
Instruction
and Student Institutional
Year Ended June 30, 2022 Services Support Total
Compensation and benefits $ 453,684,352 $ 84,408,899 $ 538,093,251
Utilities, maintenance, insurance, taxes 13,515,232 17,168,683 30,683,915
Supplies, services, travel, and other 258,877,343 44,126,070 303,003,413
Depreciation 50,295,461 11,030,099 61,325,560
Interest expense 8,016,096 506,045 8,522,141
Total Functional Expenses $ 784,388,484 $ 157,239,796 $ 941,628,280
Liberty University, Inc.
Notes to Consolidated Financial Statements
19
Academic
Instruction
and Student Institutional
Year Ended June 30, 2021 Services Support Total
Compensation and benefits $ 401,099,004 $ 72,011,162 $ 473,110,166
Utilities, maintenance and insurance, taxes 12,029,125 10,373,033 22,402,158
Supplies, services, travel, and other 235,705,882 40,853,361 276,559,243
Depreciation 51,322,058 10,423,645 61,745,703
Interest expense 5,632,839 393,594 6,026,433
Total Functional Expense $ 705,788,908 $ 134,054,795 $ 839,843,703
5. Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would
be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly
transaction between market participants at the measurement date. ASC Topic 820 emphasizes that
fair value is a market-based measurement, not an entity-specific measurement. The framework for
measuring fair value under the guidance is based on a fair value hierarchy that distinguishes between
observable inputs (i.e., inputs that are based on market data obtained from independent sources)
and unobservable inputs (i.e., inputs that require the University to make its own assumptions about
market participant assumptions because little or no market data exists). The three levels of the fair
value hierarchy are described below:
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the University has the ability to access.
Level 2 Inputs to the valuation methodology include:
Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical assets or liabilities in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability; and
Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value measurement. Valuation techniques are
used to maximize the use of observable inputs and minimize the use of unobservable inputs.
Liberty University, Inc.
Notes to Consolidated Financial Statements
20
Mutual funds and common stocks are valued at the closing price reported on the active market on
which the individual securities are traded. Fixed income securities are valued at exchange close
price or, if not available, last sale price or average bid/ask. Real estate is recorded at the appraised
value or depreciated cost, which approximates fair value. Fair values for assets in Level 2 are
calculated using quoted market prices for similar assets in markets that are not active. All assets
have been valued using a market approach, except for Level 3 assets. For Level 3 assets, the
University’s management, with the help of its investment committee and a third-party investment
advisory firm, determine fair value measurement valuation policies and procedures. The carrying
amount of Level 3 investments approximate fair value as of June 30, 2022 and 2021. There were no
changes in the valuation methodology during the year ended June 30, 2022.
Fair Value at June 30, 2022
Level 1 Level 2 Level 3 NAV
1
Total
Assets:
Cash and cash equivalents $ 332,153,274 $ 8,688,979 $ - $ - $ 340,842,253
Publicly traded equities 371,928,872 - - 191,678,551 563,607,423
Traditional fixed income 31,356,676 165,508,301 - 521,995,608 718,860,585
Hedge funds 666,834 - - 195,737,734 196,404,568
Private equity - - 5,654,399 38,657,857 44,312,256
Commodities/other
alternatives 37,960,882 - - 96,692,921 134,653,803
Total Assets $ 774,066,538 $ 174,197,280 $ 5,654,399 $ 1,044,762,671 $ 1,998,680,888
Liabilities:
Gift annuities payable $ - $ - $ 24,893,937 $ - $ 24,893,937
Liability under split interest
agreements - - 784,693 - 784,693
Total Liabilities $ - $ - $ 25,678,630 $ - $ 25,678,630
Fair Value at June 30, 2021
Level 1 Level 2 Level 3 NAV
1
Total
Assets:
Cash and cash equivalents $ 143,445,385 $ 8,642,910 $ - $ - $ 152,088,295
Publicly traded equities 494,718,549 - - 241,071,468 735,790,017
Traditional fixed income 31,475,965 178,912,211 - 556,351,212 766,739,388
Hedge funds 1,148,154 - - 199,574,919 200,723,073
Private equity
-
- 6,478,506 42,650,553 49,129,059
Commodities/other
alternatives 1,905,744 - - 89,388,375 91,294,119
Total Assets $ 672,693,797 $ 187,555,121 $ 6,478,506 $ 1,129,036,527 $ 1,995.763,951
Liabilities:
Gift annuities payable $ - $ - $ 27,420,466 $ - $ 27,420,466
Liability under split interest
agreements - - 751,930 - 751,930
Total Liabilities $ - $ - $ 28,172,396 $ - $ 28,172,396
Liberty University, Inc.
Notes to Consolidated Financial Statements
21
1
Net Asset Value (“NAV”) column above represents the University’s ownership interest in investment
vehicles that are not publicly traded (i.e. Limited Partnership, etc.). As a practical expedient, the
University uses its ownership interest in the NAV to determine the fair value of all alternative
investments that do not have a readily determinable fair value and have financial statements
consistent with the measurement principles of an investment company or have the attributes of an
investment company. These NAVs are provided by an independent, their-party administrator, and
each vehicle also has an audit completed yearly.
The NAV of these investments is approved by the general partner upon calculation from the third-
party administrator and is based upon appraisal or other estimates that require varying degrees of
judgment. If no public market exists for the investment securities, the general partner will take
into consideration, among other things, the cost of the securities, prices of recent significant
placements of securities of the same issuer, and subsequent developments concerning the
companies to which the securities relate. The University has performed due diligence around these
investments to ensure that NAV is an appropriate measure of fair value as of June 30, 2022 and
2021.
Redemptions are generally permitted after some period of time after initial investment (for
example, monthly, quarterly, annually, five-year, and ten-year), subject to certain restrictions,
which include a notice period usually ranging from 30 days to one year.
Redemption Information for Assets Valued at NAV
Fair Value as of June 30, 2022
Classification NAV Redemption Terms Days Notice
Publicly traded equities $ 33,244,464 Daily Daily
134,126,857 Monthly 30 days
24,307,230 Quarterly 1 year rolling
Traditional fixed income 521,995,608 Monthly 30 days
Hedge funds 149,889,461 Quarterly 90 days
27,368,330 Quarterly 1 year
18,479,943 Quarterly 5 years or more
Private equity/venture capital 38,657,857 Not redeemable 3 years or more
Commodities/other alternatives 96,692,921 Monthly 30 days
Total Assets Valued at NAV $1,044,762,671
Liberty University, Inc.
Notes to Consolidated Financial Statements
22
Redemption Information for Assets Valued at NAV
Fair Value as of June 30, 2021
Classification NAV Redemption Terms Days Notice
Publicly traded equities $ 48,369,724 Daily Daily
151,955,576 Monthly 30 Days
16,476,238 Annual In redemption
24,269,930 Annual 90 days
Traditional fixed income 556,351,212 Monthly 30 days
Hedge funds 559,841 In Progress N/A
15,328,107 Quarterly 60 Days
129,004,250 Quarterly 90 Days
29,802,293 Semi-annual 60 Days
24,880,428 Quarterly 5 years or more
Private equity/venture capital 42,650,553 Not redeemable 3 years or more
Commodities/other alternatives 89,388,375 Monthly 30 Days
Total Assets Valued at NAV $ 1,129,036,527
Private equity funds had $13,615,643 and $24,593,883 remaining unfunded with up to 8 years as of
June 30, 2022 and 2021, respectively.
Changes in Level 3 assets for the years ended June 30, 2022 and 2021 are as follows:
Years Ended June 30, 2022 2021
Balance, beginning of year $ 6,478,506 $ 6,528,661
Purchases and sales, net (597,610) -
Realized/unrealized gains (losses) (226,497) (50,155)
Balance, end of year $ 5,654,399 $ 6,478,506
Liberty University, Inc.
Notes to Consolidated Financial Statements
23
Changes in Level 3 liabilities for the years ended June 30, 2022 and 2021 are as follows:
Gift Other
Annuities Split-Interest
Payable Agreements
Balance, June 30, 2020 $ 27,826,254 $ 1,181,373
Additions/purchases 841,976 3,056
Payouts (2,917,924) (118,676)
Realized/unrealized gains (losses) 10,556,115 219,466
Change in value of split-interest agreements (8,885,955) (533,289)
Balance, June 30, 2021 $ 27,420,466 $ 751,930
Additions/purchases 308,109 -
Payouts (2,675,290) (120,092)
Realized/unrealized gains (8,166,335) (208,484)
Change in value of split-interest agreements 8,006,987 361,339
Balance, June 30, 2022 $ 24,893,937 $ 784,693
6. Property, Plant and Equipment
Property, plant and equipment, net consists of the following at:
J
une 30, 2022 2021
Buildings $ 1,273,353,955 $ 1,250,647,166
Furniture and equipment 265,098,498 264,911,729
Land and land improvements 190,303,617 188,607,577
Construction in progress 52,781,770 25,722,591
Total property, plant and equipment 1,781,537,840 1,729,889,063
Accumulated depreciation and amortization (479,776,145) (441,114,885)
Property, plant and equipment, net $ 1,301,761,695 $ 1,288,774,178
The University capitalized $1,385,664 and $2,416,400 of interest for the year ended June 30, 2022
and 2021, respectively. Depreciation expense for the years ended June 30, 2022 and 2021, was
$61,325,560 and $61,745,703, respectively.
Liberty University, Inc.
Notes to Consolidated Financial Statements
24
7. Investments in Real Estate
Investment in real estate, net consists of the following at:
J
une 30,
2022 2021
Investment in real estate
$ 186,966,826
$ 189,358,087
Accumulated depreciation and amortization (30,435,228) (24,454,922)
Investment in real estate, net $ 156,531,598 $ 164,903,165
The University’s investments in real estate consist of land and buildings donated from various
individuals or purchased by the University for investment purposes. The University holds investments
in real estate at historical cost less depreciation. These investments are analyzed for impairment
each year based on current market conditions. During the years ended June 30, 2022 and June 30,
2021, the University recognized $9,590,797 and $0, respectively, of impairment loss on investments
in real estate.
8. Deferred Revenue and Deposits
Deferred revenue and deposits consist primarily of student related charges including tuition and
fees which are deferred until earned. The deferral is calculated based on number of class days used
or unused. The deposits are primarily monies deposited with the University toward a term for which
the University’s performance obligation has not yet been performed for the individual. Deferred
revenue and deposits consist of the following at:
J
une 30, 2022 2021
Deferred student - Fall $ 61,858,986 $ 56,979,152
Deferred student - Summer 50,269,601 71,452,548
Deposits 25,516,112 25,612,956
Deferred student – Liberty University Online Academy 5,353,949 4,478,475
Deferred – Other 4,006,756 5,310,295
Deferred student - Spring 4,828 -
Total Deferred revenue and deposits $ 147,010,232 $ 163,833,426
Liberty University, Inc.
Notes to Consolidated Financial Statements
25
The following tables summarize the contract liability activity for the years ended June 30, 2022 and
2021:
Beginning Revenue Cash Ending
Year Ended June 30, 2022 Balance Recognized Receipts Balance
Tuition and fees
$ 132,876,026 $(1,001,440,138) $ 985,970,449 $ 117,406,337
Auxiliary activities
34,149 (95,683,086) 95,729,964 81,027
Total
$ 132,910,175 $(1,097,123,224) $1,081,700,413 $ 117,487,364
Beginning Revenue Cash Ending
Year Ended June 30, 2021 Balance Recognized Receipts Balance
Tuition and fees $ 115,005,088 $ (960,248,884) $ 978,119,822 $ 132,876,026
Auxiliary activities 87,016 (83,864,191) 83,811,324 34,149
Total $ 115,092,104 $ (1,044,113,075) $1,061,931,146 $ 132,910,175
The University expects the full amount outstanding as of June 30, 2022, less refunds, to be
recognized into revenue during the year ended June 30, 2023, given the time span of each of its
terms being less than a year. Consideration from these contracts was not excluded from the
transaction prices.
9. Liabilities under Split-Interest Agreements
The University receives gifts from donors who receive income from the assets until their deaths.
These split-interest agreements consist primarily of charitable gift annuities and charitable
remainder unitrusts. These agreements provide either fixed annual payments or fixed annual returns
to the original donor or a designated beneficiary. The assets received from the donor are recorded
at fair market value upon receipt of the gift and the liability is recorded using a discount rate
reflecting expected rates of return in the marketplace and the expected lives of the donors. Fixed
payout percentages range from 3.1% to 11.4%.
The University utilized the 2012 Individual Annuity Reserving Table (“2012 IAR Table”) for reserving
purposes for the years ended June 30, 2022 and 2021. The discount rate used in calculation of split
interest agreements ranged from 0.4% to 8.0% at June 30, 2022 and 2021, respectively.
The University received contributions under split-interest agreements of $290,992 and $136,842 for
the years ended June 30, 2022 and 2021, respectively.
Liberty University, Inc.
Notes to Consolidated Financial Statements
26
10. Long-Term Debt
Long-term debt consisted of the following at:
J
une 30, 2022 2021
Bond issue 2012, unsecured and issued at a discount
of approximately $950,000, with interest only
payments due each March 1st and September 1st at a
fixed rate of 5.1%. Principal is due in full in 2042.
$ 100,000,000 $ 100,000,000
Bond issue 2019, unsecured and issued at a discount
of approximately $714,000, with various principal and
interest payments due each March 1st and Septembe
r
1st, including semi-annual interest payments ranging
from $778,000 to $1,518,582 through 2034. Annual
sinking fund payments will be due from March 2023
through March 2034 in amounts ranging from
$3,660,000 to $46,590,000. Interest rates range from
2.25% to 3.34%. 93,410,000 96,990,000
Long-term debt, gross 193,410,000 196,990,000
Less: Unamortized debt issuance costs (664,650) (711,995)
Less: Net discount on long-term debt (1,202,796) (1,283,995)
Long-term debt, net $ 191,542,554 $ 194,994,010
There were no financial covenants over long-term debt at June 30, 2022 and 2021.
There are twelve certificates of deposit from Carter Bank and Trust in an amount totaling $8,688,979
pledged as collateral to secure a performance bond with the City of Lynchburg and Campbell County
for various campus construction projects.
As of June 30, 2022, there are 15 letters of credit totaling $2,344,371, that were issued between
April 2013 and March 2022, on behalf of the University to local municipalities (City of Lynchburg and
Campbell County) and the state of Virginia for various construction projects. The expiration dates
occur between August 2022 and May 2023.
Interest expense on long-term debt amounted to $6,934,240 and $6,004,738 for the years ended
June 30, 2022 and 2021, respectively.
Liberty University, Inc.
Notes to Consolidated Financial Statements
27
The aggregate annual maturities of long-term debt as of June 30, 2022 are as follows:
Years Ending June 30,
2023 $ 3,660,000
2024 3,745,000
2025 3,825,000
2026 3,955,000
2027 4,085,000
Thereafter 174,140,000
Total $ 193,410,000
11. Leases
The University has historically entered into a number of lease arrangements under which it is the
lessee. Specifically, eleven of the University’s leases are subject to financing lease standards, and
three are subject to operating lease standards. The majority of the financing leases entered into
consist of communications tower leases. The remaining financing leases consist of equipment leases.
The three operating leases consist of equipment, parking lot, and communications tower leases.
All of the University’s leases include optional renewal periods. To the extent the initial lease term
of the related lease is less than the useful life of the leasehold improvements, the University
concludes it is reasonably certain that a renewal option will be exercised, and thus that renewal
period is included in the lease term with the related payments reflected in the right-of-use (“ROU”)
asset and lease liability. Each lease is routinely evaluated to determine the likelihood that renewal
periods will be exercised.
All of the University’s leases include fixed rental payments, but some of the leases also include
variable rental payments. In addition, the University also commonly enters into leases under which
the lease payments increase at pre-determined dates based on the change in the consumer price
index. While the majority of the leases are gross leases, the University also has a number of leases
in which separate payments are made to the lessor based on the lessor’s property and casualty
insurance costs and the property taxes assessed on the property, as well as a portion of the common
area maintenance associated with the property. The University has elected to separate lease and
non-lease components for all leases.
As of June 30, 2022, lease liabilities have been determined using a weighted-average discount rate
of approximately 4.68%. The rate implicit in the University’s leases is not readily determinable.
Accordingly, the University uses its estimated incremental borrowing rate, which represents the
rate of interest that it would pay to borrow on a collateralized basis over a similar term. The
remaining weighted-average life of the University’s finance leases and operating leases is
approximately 18.94 years and 4.85 years, respectively, with a weighted-average of 13.22 years
across all leases.
Liberty University, Inc.
Notes to Consolidated Financial Statements
28
The University has decided to exclude non-lease components when measuring right-of-use assets
and lease liabilities. Non-lease components include payments for utilities, and payments based on
the usage of the leased assets.
Lease costs were as follows:
Years Ended June 30,
2022 2021
Operating Lease Cost
Fixed rent expense
$ 1,287,971 $ 543,232
Finance Lease Cost
Amortization of ROU assets
396,887 345,063
Interest expense
123,724 73,987
Net Lease Cost
$ 1,808,582 $ 962,282
Lease Cost – Instruction
$ - $ 8,231
Lease Cost – Public service
77,566 104,566
Lease Cost – Student services
9,571 9,782
Lease Cost – Institutional support
1,721,445 839,703
Net Lease Cost
$ 1,808,582 $ 962,282
Amounts recognized as right-of-use assets related to finance leases are included in prepaid expenses
and other assets, net in the accompanying statements of financial position, while related lease
liabilities are included in other long-term liabilities. Right-of-use assets totaled $7,864,142 and
$952,083 as of June 30, 2022 and 2021, respectively. Current and long-term portions of lease
liabilities related to finance leases totaled $344,307 and $7,659,840, respectively, as of June 30,
2022. Current and long-term portions of lease liabilities related to finance leases totaled $310,225
and $961,408, respectively, as of June 30, 2021.
The University had the following cash and non-cash
activities associated with leases as follows:
Years Ended
J
une 30, 2022 2021
Cash paid for amounts included in the measurement
of lease liabilities
Operating cash flows from operating leases $ 1,266,038 $ 482,351
Operating cash flows from finance leases 305,814 312,334
Financing cash flows from finance leases 123,724 73,987
Non-cash investing and financing activities
additions to ROU assets obtained from:
New operating lease liabilities 8,412,601 706,920
New finance lease liabilities $ 6,962,474 $ -
Liberty University, Inc.
Notes to Consolidated Financial Statements
29
Future minimum lease payments due under financing and operating leases as of June 30, 2022 were
as follows:
Financing Leases Operating Leases
2023 $ 660,546 $ 2,532,591
2024 738,307 2,371,129
2025 591,775 1,735,129
2026 495,633 256,764
2027 469,089 261,900
2028 and thereafter 9,475,140 1,341,202
Total lease payments $ 12,430,490 $ 8,498,715
Less: Imputed interest (4,426,343) (704,398)
Present Value of Lease Liabilities $ 8,004,147 $ 7,794,317
12. Net Assets Released from Restrictions
Net assets are released from donor restrictions by incurring expenses satisfying the restricted
purpose or by the occurrence of other events specified by donors. Net assets restricted for the
construction of a building are released when the building is placed in service. Total net assets
primarily used for scholarships, capital projects and athletic expenses released or reclassified were
$2,095,186 and $1,667,232 for the years ended June 30, 2022 and 2021, respectively.
Liberty University, Inc.
Notes to Consolidated Financial Statements
30
13. Net Assets
The amounts included as net assets with donor restrictions consist of the following at:
J
une 30, 2022 2021
Perpetual Endowments
Scholarships $ 12,328,250 $ 12,253,818
General University 3,557,283 3,557,705
Seminary 43,204 43,204
Endowment requiring earnings added to corpus 169,031 199,454
Total perpetual endowments $ 16,097,768 $ 16,054,181
Purpose Restricted Net Assets
Scholarships $ 7,650,219 $ 9,123,535
Athletics 2,646,217 1,332,810
Capital projects 2,256,356 760,681
Benevolence and missions and othe
r
4,858,788 4,494,344
Underwater endowments (859,546) (772,135)
Total purpose restricted net assets $ 16,552,034 $ 14,939,235
Time Restricted Net Assets
Split interest agreements $ 363,498 $ 689,043
Total time restricted net assets 363,498 689,043
Net assets with donor restrictions $ 33,013,300 $ 31,682,459
14. Endowments
The University’s endowment consists of 89 individual donor-restricted endowment funds as well as
quasi endowment funds. Net assets associated with these endowment funds are classified and
reported based on the existence or absence of donor-imposed restrictions.
With Donor Restrictions
Without Donor Original Accumulated
J
une 30, 2022 Restrictions Gift (Loss) Gain Total
Quasi endowment $ 2,151,153,066 $ - $ - $ 2,151,153,066
Underwater funds
-
3,441,200 (859,546) 2,581,654
Other funds - 12,656,568 3,055,675 15,712,243
Total $ 2,151,153,066 $ 16,097,768 $ 2,196,129 $ 2,169,446,963
Liberty University, Inc.
Notes to Consolidated Financial Statements
31
With Donor Restrictions
Without Donor Original Accumulated
J
une 30, 2021 Restrictions Gift (Loss) Gain Total
Quasi endowment $ 2,136,296,121 $ - $ - $ 2,136,296,121
Underwater funds
-
3,441,200 (772,135) 2,669,065
Other funds - 12,612,981 5,020,429 17,633,410
Total $ 2,136,296,121 $ 16,054,181 $ 4,248,294 $ 2,156,598,596
The quasi endowment is held to support the general purpose of the University as needed.
The management of donor-restricted endowment funds is governed by state law under the Uniform
Prudent Management of Institutional Funds Act (“UPMIFA”) as adopted by the Virginia state
legislature in 2008. The law gives guidance for investment and spending practices, giving
consideration for donor-intent and the organization’s overall resources and charitable purpose.
Based on its interpretation of the law and in compliance with donor intent, the University classifies
as net assets with donor restrictions in perpetuity (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 portion of
the donor-restricted endowment that is not classified as perpetual endowments is classified as
purpose or time restricted net assets until those amounts are appropriated for expenditure.
Changes in endowment funds consisted of the following for the years ended June 30, 2022 and 2021:
Without Donor With Donor
Restrictions Restrictions Total
Endowment net assets, June 30, 2020 $ 1,697,866,458 $ 16,596,106 $ 1,714,462,564
Investment return, net 221,631,137 3,591,770 225,222,907
Contributions, net 216,798,527 133,450 216,931,977
Appropriations for expenditure - (18,852) (18,852)
Endowment net assets, June 30, 2021 $ 2,136,296,122 $ 20,302,474 $ 2,156,598,596
Investment return, net (191,995,548) (2,032,375) (194,027,923)
Contributions, net 206,852,492 82,052 206,934,544
Appropriations for expenditure - (58,254) (58,254)
Endowment net assets,
June 30, 2022 $ 2,151,153,066 $ 18,293,897 $ 2,169,446,963
The University has adopted donor-restricted endowment and quasi endowment spending policies to
help ensure the continued viability of endowment funds and to preserve the long-term purchasing
power of endowment funds. Investment returns are achieved through capital appreciation (realized
and unrealized), current yield (interest and dividends), and net income on endowed subsidiaries.
Liberty University, Inc.
Notes to Consolidated Financial Statements
32
The University has a diversified asset allocation that places emphasis on investments in equities and
absolute return strategies to achieve its long-term return objectives within prudent risk constraints.
The Board-approved spending formula for the donor restricted endowment provides for spending
the lesser of 3% of the original gift, including earnings returned to principle as of the prior year end,
or historic accumulated earnings distributed to the endowment fund.
15. Employee Benefit Plans
The University participates in retirement plans for all eligible faculty, staff, and hourly employees
and matches plan participants’ contributions up to 5% of gross pay. Eligible participants are subject
to a five-year vesting schedule. The University contributed $9,346,810 and $8,501,864 under these
plans during the years ended June 30, 2022 and 2021, respectively.
Also, in May 2022, The University
rolled out a new 457(b) plan for employees as an additional tax sheltered saving account option.
The University is self-insured for employee health care claims up to $400,000 per covered individual
per plan year. The University has purchased specific stop loss coverage from a commercial insurance
carrier to provide for any claim in excess of these amounts. At June 30, 2022 and 2021, the
University had provided an accrual of $4,426,200 and $4,751,765, respectively, which represents
our Incurred But Not Reported claims for the previous plan year. Participants are fully vested at
enrollment. For the years ended June 30, 2022 and 2021, the University incurred claims, premium
expenses, and administrative fees related to its health care plan totaling $36,698,317 and
$31,826,026, respectively.
During the year ended June 30, 2020, the University provided then-President Jerry Falwell
(“Falwell”) an additional nonqualified retirement plan to supplement his University-provided
403(b). The benefit was structured so that it is treated as having been earned as an annual notional
credit of $385,000 (reduced by the University-provided 403(b) employer contribution) to an account
earning 6% investment returns annually over the term of Falwell’s service as President, including
credits for the period 2007-2019. Annual credits attributable to service periods after July 1, 2019
require Falwell to be employed as President through the crediting date to receive the credit, and
the entire benefit is subject to forfeiture if certain conditions are not met or if a court rules in the
University’s favor in pending litigation with Falwell. As of June 30, 2022 and June 30, 2021,
$8,579,728 and $8,738,208 is accrued, respectively, as the liability for this plan.
16. Compensated Absences
The University provides paid personal/sick days to all benefited full-time employees at a rate of
five days per year. The policy does not allow for the accumulation of sick leave. Unused personal
sick day benefits are not paid to employees while employed or upon termination.
The University provides for vacation days accrued based on years of employment and paid at the
employee’s base pay rate at the time of vacation. The policy does not allow for carryover of unused
days into the next calendar year nor compensation in the form of payment at the end of the calendar
year. Upon termination of employment, employees will be paid for unused vacation time that has
been earned through the last day of work.
The vacation policy was updated on April 1, 2022 to
include increased vacation days for all years of service as well as the ability to roll over up to five
days of unused vacation from the previous calendar year.
Liberty University, Inc.
Notes to Consolidated Financial Statements
33
However, employees will no longer be able to use unearned vacation days effective January 1, 2023.
Accrued vacation was $4,876,141 and $2,674,683 at June 30, 2022 and 2021, respectively, and is
included in accrued liabilities on the consolidated statements of financial position.
17. Related Party Transactions
The University provides printing, postal, telephone, custodial, security, and facilities usage to
certain related parties. Receivables in connection with these services in the accompanying
consolidated statements of financial position are included in the Amounts Receivable from Related
Parties schedule below.
As part of the consideration of the purchase of the LCA facilities and a Danville, Virginia shopping
center from Thomas Road Baptist Church (“TRBC”), the University provides certain shared services
to TRBC at no additional charge. The value of custodial services was $174,000 for each of the years
ended June 30, 2022 and 2021. The University also provided $75,877 in Information Services support
for the year ended June 30, 2022. Information Services support was not separately tracked in prior
years. The University also provided $282,857 in usage of LCA facilities to TRBC, and $152,040 in
usage of the Dan River Church facilities to TRBC for each of the years ended June 30, 2022 and 2021.
The values of the custodial charges and Information Support are recorded as donation expense on
the University’s consolidated statements of activities, and the donated facilities usage is recorded
as rental revenue and donation expense.
In addition, the University provided to TRBC $37,500 for each of the years ended June 30, 2022 and
2021 for the church’s usage of Camp Hydaway as consideration of the University’s purchase of the
facility from TRBC. The donated facilities usage is recorded as rental revenue and donation expense.
In the year ended June 30, 2022, the University donated five vehicles to TRBC with a value of
$505,960. Broadcast equipment valued at $111,383 and other equipment valued at $26,410 was also
donated by the University to TRBC as well as $2,358 miscellaneous donations. These donations are
recorded as donation expense.
The University holds a note receivable from OTGH with balances of $195,378 and $189,069 at
June 30, 2022 and 2021, respectively.
As University Trustee and Senior Pastor of TRBC, Jonathan Falwell holds a seat on LCA’s Board of
Directors. LCA has been granted access rights to various TRBC buildings and land at no cost to LCA.
The fair value of the usage of the TRBC property was estimated to be $235,765 and $292,546 for
the years ended June 30, 2022 and June 30, 2021, respectively. LCA has made improvements to the
buildings and land which are recorded by LCA as leasehold improvements and depreciated based
upon the shorter of the lease term or estimated useful life of the improvements. During each of the
years ended June 30, 2022 and June 30, 2021, LCA received $6,000 donations from TRBC. The
members of TRBC also receive a tuition discount to attend LCA, which approximated $78,107 and
$73,500 for the years ended June 30, 2022 and June 30, 2021, respectively. These amounts are
recorded in Other Sources and Institutional Support in the University’s consolidated statements of
activities.
Liberty University, Inc.
Notes to Consolidated Financial Statements
34
In addition, beginning July 1, 2020 and ending June 30, 2022, LCA, along with TRBC, Liberty
Godparent Home, and two unaffiliated organizations, was enrolled in a captive insurance plan for
employee healthcare. TRBC was plan administrator and, as such, paid and allocated plan claims and
costs to the participating organizations based on estimated usage. LCA was allocated 52.10% and
53.85% of plan claims and costs for the years ended June 30, 2022 and June 30, 2021. LCA medical
expenses for the plan years ended June 30, 2022 and June 30, 2021 were $1,167,400 and $1,005,016,
respectively. Amounts due from LCA to TRBC for LCA’s share of claims and costs paid on behalf of
the plan were $3,058 and $23,151 at June 30, 2022 and June 30, 2021, respectively.
For the year ending June 30, 2022, the University notified and requested reimbursement from
Former President Jerry Falwell, Jr. and certain members of his immediate family for certain
expenses paid on their behalf. To date, these amounts are being reviewed by Jerry Falwell, Jr. and
his immediate family and no resolution for reimbursement has been reached. The amount to be
reimbursed is not a material disclosure to the consolidated financial statements.
During the year ended June 30, 2021, Freedom Aviation, Inc. (Freedom) performed $13,929 in
charter services for Jerry Falwell, Jr. Freedom and its wholly owned subsidiary Virginia Aviation
Resources, Inc. performed $54,657 and $57,932 aviation fueling and maintenance services to
Jonathan Falwell and his company N-J Aviation LLC in the fiscal years ended June 30, 2022 and
2021, respectively. As of June 30, 2021, $42,508 was due from N-J Aviation LLC. There were no
amounts due from Jonathan Falwell as of June 30, 2022.
Real estate management fees of $40,655 were paid to JF Management, LLC, owned by a son of Mr.
Falwell, in the year ended June 30, 2021.
In July 2020, the University made a $486,566 payment in full on a Carter Bank and Trust note held
by the Falwell Family GST Irrevocable Trust (the “Trust”). The University holds a note receivable
from the Trust with a balance of $497,820 and $492,126 at June 30, 2022 and June 30, 2021,
respectively, including interest accrued at 1.17% per year.
Other immaterial related party transactions are disclosed in public documents as required by federal
or state regulations. The University does not control Thomas Road Baptist Church, Liberty Godparent
Home, Liberty University Foundation, or Old Time Gospel Hour.
18. Commitments and Contingencies
The University is subject to certain claims that arise in the ordinary course of operations. Many of
these claims are in the early stages of the evaluation process. Accordingly, it is not possible at the
present time to estimate the ultimate legal and financial liability, if any, with respect to certain
lawsuits. In the opinion of management, after consultation with counsel, adequate insurance exists,
so the eventual outcome of such claims is not expected to have a material adverse effect on the
University’s financial position. However, an unfavorable resolution of some or all of these matters
could materially affect the future results of operations or cash flows in a particular period.
The University’s students receive a substantial amount of support from federal and state student
financial assistance programs. A significant reduction in the level of this support, if this were to
occur, may have an adverse effect on the University’s programs and activities. Amounts received
and expended by the University under various federal and state programs are subject to audit by
various federal and state agencies and therefore subject to adjustment.
Liberty University, Inc.
Notes to Consolidated Financial Statements
35
According to Iskason & Roe (Public law 116-315; Section 1019), the process of issuing overpayments
of Veterans Administration payments has changed. Effective January 2021, any overpayment of
Tuition and Fee funds for a student using Post-9/11 GI Bill®, Fry Scholarship, and/or Edith Nourse
Rogers STEM Scholarship will be a liability of the school. This includes payments made to the school
for the tuition and fees, as well as payments made to the student for tuition and fees. Due to this
change in legislation, there are now times when a school will be in debt for more than the school
was paid for the term. In these cases, a charge will be placed on the student’s account in the amount
that the school paid the Veterans Administration over and above the money that the University
received for this student.
There are various commitments and contingencies related to the University’s construction projects,
which are listed below. Listed by project is the contract amount in place, contract costs completed,
and as of June 30, 2022, the remainder of contract costs to be completed.
Contract Costs to Costs to
Project
Amount Date Complete
Reber Thomas Dining
$ 61,896,044 $ 17,014,884 $ 44,881,160
Liberty Multipurpose Center
13,136,035 7,113,846 6,022,189
Hydaway Lake Expansion
10,679,329 6,357,180 4,322,149
West William Stadium Suite
6,348,812 4,717,874 1,630,938
Hangar Building Maintenance
3,333,589 668,581 2,665,008
Total $ 95,393,809 $ 35,872,365 $ 59,521,444
On September 30, 2021, the University received notice of an Internal Revenue Service examination
for fiscal year 2019. The investigation is ongoing at June 30, 2022, but management does not believe
this examination will result in material liabilities or adjustments to the financial statements.
On February 18, 2022, the University was notified of a pending U.S. Department of Education Clery
Act compliance program review. The review is ongoing, and results have not been determined as
of the date of this report.
The University also has agreed to certain guarantees that could be, but are highly improbable to
be, material to financial statements in future years.
Liberty University, Inc.
Notes to Consolidated Financial Statements
36
19. Contributions of Nonfinancial Assets
Contributions for the years ended June 30, 2022 and June 30, 2021 were as follows:
Without Donor With Donor
Year Ended June 30, 2022 Restrictions Restrictions Total
Contributions of cash and other financial
assets $ 7,437,902 $ 5,567,334 $ 13,005,236
Contributions of nonfinancial assets 726,661 - 726,661
Total $ 8,164,563 $ 5,567,334 $ 13,731,897
Without Donor With Donor
Year Ended June 30, 2021
Restrictions Restrictions Total
Contributions of cash and other financial
assets $ 4,331,182 $ 5,948,233 $ 10,279,415
Contributions of nonfinancial assets 256,862 - 256,862
Total $ 4,588,044 $ 5,948,233 $ 10,536,277
Contributions of nonfinancial assets include any non-monetary contributions to the University.
Contributions of nonfinancial assets consisted of the following:
Years Ended June 30, 2022 2021
Horses/equine $ 189,900 $ 19,900
Aircraft
- 215,383
Furniture and equipment 11,050 3,500
Land 511,008 -
Other 14,703 18,079
Total contributions of nonfinancial assets $ 726,661 $ 256,862
There are no restrictions on contributions of nonfinancial assets for the years ended June 30, 2022
and June 30, 2021.
20. Other Sources
For the years ended June 30, 2022 and 2021, the University had other sources income of $84,151,452
and $63,404,485, respectively. These amounts include various non-mandatory student fees, fines,
vehicle registration fees, sales and commissions, rental income, advertising income, athletic league
distributions, health services revenue, and various sporting event related income and other
miscellaneous income.
Liberty University, Inc.
Notes to Consolidated Financial Statements
37
21. Goodwill Impairment
During the year ended June 30, 2021, the University engaged with third-party appraisers to assess
the value of the property of its wholly-owned subsidiary, River Ridge Mall JV, LLC (the “Mall”). The
Mall is currently in the midst of a multi-phase redevelopment, and with the changes in occupancy
and the effects of the coronavirus pandemic, an assessment of its goodwill was deemed necessary.
Using the most recently obtained appraisal and the Mall’s cash and receivable balances, net
liabilities, the University determined that the Mall’s $10,570,036 of goodwill was fully impaired and
recognized a goodwill impairment loss of that amount within the accompanying consolidated
statement of activities. No similar goodwill impairment was incurred during the year ended June 30,
2022.
22. Acquisition
On January 1, 2022, University subsidiary Liberty Health Services (LHS), purchased from Central
Virginia Family Physicians (CVFP); 67% membership interest in MD Resource, LLC (MDR), 80%
membership interest in Collaborative Health Partners (CHP Legacy), and certain tangible and
intangible assets of CVFP. The transaction creates a new Collaborative Health Partners (CHP) with
a five-person board. Three members are appointed by CHP and two members are appointed by
CVFP. The acquisition allows CHP to support the University’s medical education goals and positively
impact the quality of value-based healthcare in the community.
LHS provided $6,997,583 in cash as consideration for the purchase. The purchase brought CHP’s
ownership of MDR and CHP Legacy to 100%. Goodwill of $5,886,425 was recognized because of the
sale, which includes the workforce in place and the acquired interests in MDR and CHP Legacy.
$1,791,705 of other intangible assets and $204,053 of property, plant, and equipment were also
recognized.
23. Higher Education Emergency Relief Fund
On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic
Security (“CARES”) Act.” The CARES Act, among other things, includes provisions relating to
refundable payroll tax credits, deferment of employer side social security payments, net operating
loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest
deduction limitations, increased limitations on qualified charitable contributions, and technical
corrections to tax depreciation methods for qualified improvement property.
The University was allocated federal funds from the CARES Act for Higher Education Emergency
Relief Fund (“HEERF Grant”) in the total amounts of approximately $15,205,124 related to relief
efforts in light of the COVID-19 outbreak. During the year ended June 30, 2021, the University drew
down and distributed all $15,205,124 of the HEERF Grant directly to students.
Liberty University, Inc.
Notes to Consolidated Financial Statements
38
On December 27, 2020, President Trump signed into law the “Coronavirus Response and Relief
Supplemental Appropriations Act (CRRSAA)”. This legislation added to the federal funds previously
allocated under the HEERF Grant (“HEERF 2”). The University was allocated $37,777,577 from the
HEERF 2 funds, with $10,282,412 to be utilized for direct aid to students. During the year ended
June 30, 2021, the University drew down and disbursed all $10,282,412 of the HEERF 2 funds directly
to students. During the year ended June 30, 2021, the University expended and recognized
$27,495,165 of the portion meant to reimburse institutional expenses related to COVID-19 as grants
and contracts revenue in the accompanying statement of activities.
On March 11, 2021, President Biden signed into law the “American Rescue Plan (“ARP”) Act.” The
ARP Act created an additional allocation of federal funds for education under the HEERF Grant
(“HEERF 3”). The University was allocated $63,492,347 of HEERF 3 funds. During the year ended
June 30, 2022, the University drew down and disbursed all $40,543,741 of HEERF 3 funds allocated
for student aid directly to students. During the year ended June 30, 2022, the University expended
and recognized $9,747,281 of HEERF 3 funds to reimburse institutional expenses related to COVID-
19 as grants and contracts revenue in the accompanying statement of activities. As of the date of
this report, an additional $5,532,144 of HEERF 3 funds has been drawn down to reimburse
institutional expenses.
24. Subsequent Events
Management has evaluated subsequent events and their potential effects on these consolidated
financial statements from June 30, 2022 (the date the consolidated statement of financial position
is being presented) through November 18, 2022 (the date these consolidated financial statements
were available to be issued).
Supplementary Information
Strength Strength Weighted
Strength Factor Factor Strength
Reference Ratio/Variable Description Data Factor Calculation Weight Factor
Primary Reserve Ratio
Consolidated Statement of Financial Position Net assets without donor restrictions + $ 3,493,968,692
Consolidated Statement of Financial Position Net assets with donor restrictions
+ 33,013,300
Consolidated Statement of Financial Position Net assets with donor restrictions: restricted in perpetuity - 16,097,768
Annuities, term endowment, and life income funds with
N/A donor restrictions - -
See Note C to this schedule Intangible assets - 12,673,115
Consolidated Statement of Financial Position Net property, plant and equipment (see Note A to this schedule) - 1,317,329,275
Note 8 Post-employment and defined benefit pension liabilities + 8,579,728
All debt obtained for long-term purposes, not to exceed net
Consolidated Statement of Financial Position property, plant and equipment (See Note B to this schedule) + 207,341,018
Consolidated Statement of Financial Position Unsecured related-party receivables
- 2,366,928
Numerator total $ 2,394,435,652
Consolidated Statement of Activities - Total Operating All expenses and losses without donor restrictions less any
Expenses Plus Nonoperating Losses losses without donor restriction on investments, post-
employment and defined benefit pensions, and annuities + $ 958,967,869
Denominator total $ 958,967,869
Primary Reserve Ratio: 2.50 10.00 3.00 0.40
1.20
Equity Ratio
Consolidated Statement of Financial Position Net assets without donor restrictions + $ 3,493,968,692
Consolidated Statement of Financial Position Net assets with donor restrictions + 33,013,300
See Note C to this schedule Intangible assets - 12,673,115
Consolidated Statement of Financial Position Unsecured related-party receivables - 2,366,928
Numerator total $ 3,511,941,949
Consolidated Statement of Financial Position Total assets + $ 4,002,537,835
See Note C to this schedule Intangible assets - 12,673,115
Consolidated Statement of Financial Position Unsecured related-party receivables - 2,366,928
Denominator total $ 3,987,497,792
Equity Ratio: 0.88 6.00 3.00 0.40 1.20
Net Income Ratio
Consolidated Statement of Activities Change in net assets without donor restrictions + $ 64,712,296
Numerator total $ 64,712,296
Statement of Activities - Total Operating Revenues Total revenues without donor restriction, including net assets
Without Donor Restriction Plus Nonoperating Revenues released from restrictions and gains + $ 1,233,655,714
Denominator total $ 1,233,655,714
Net Income Ratio: 0.05 1 + (50x) 3.00 0.20 0.60
Strength Factor Score 3.0
See independent auditor's report as well as notes to Title IV Strength Factor Score.
Liberty University, Inc.
Title IV Strength Factor Score
Year Ended June 30, 2022
40
Note A. Property, Plant and Equipment, Net
June 30,
2022
Pre-Implementation
Net property, plant and equipment
979,026,174$
Post-Implementation
Net property plant and equipment - With outstanding debt for
original purchase
-
Net property plant and equipment - Without outstanding debt for
original purchase
269,953,751
Construction in process
52,781,770
Total property and equipment, net
1,301,761,695
Right-of-use assets - pre-implementation
261,944
Right-of-use assets - post-implenetation
15,305,636
Total right-of-use assets
15,567,580
Total property and equipment, net and right-of-use assets
1,317,329,275$
Note B. Long-Term Debt for Long-Term Purposes
June 30,
2022
Long term debt for long term purposes - pre-implementation
191,542,554$
Long term debt for long term purposes - post-implementation
-
Total long-term debt for long-term purposes
191,542,554$
June 30,
2022
Right-of-use liabilities - pre-implementation
299,095$
Right-of-use liabilities - post-implementation 15,499,369
Total right-of-use liabilities
$ 15,798,464
Note C. Intangible Assets
accordance with accounting standards generally accepted in the United States of America.
Liberty University, Inc.
Notes to Title IV Strength Factor Score
Year Ended June 30, 2022
Long term debt exceeds twelve months and was used to fund capitalized assets (i.e., property,
plant and equipment or capitalized expenditures in accordance with accounting standards
generally accepted in the United States of America).
Intanglible assets includes goodwill, rights to domain names, and favorable lease positions in
41
June 30, 2022 2021
Assets
Cash and cash equivalents 396,403,746$ 389,828,649$
Accounts receivable, less allowance for doubtful accounts
of $7,488,082 and $6,419,508 for the years ended June 30,
2022 and 2021, respectively 66,355,422 49,641,717
Amounts receivable from related parties 2,366,928 897,859
Notes receivable, less allowance for bad debt of $0 and
$283,415 as of June 30, 2022 and 2021, respectively 5,436,378 5,792,044
Contributions receivable, net 392,741 416,840
Prepaid expenses and other assets 31,000,745 21,525,959
Investments, at fair value 2,195,185,932 2,191,487,788
Investments in real estate 46,710,318
47,722,396
Property, plant, and equipment, net 1,279,947,820 1,264,707,111
Total Assets 4,023,800,030$ 3,972,020,363$
Liabilities and Net Assets
Liabilities:
Accounts payable - vendors 62,405,142
61,180,090
Accounts payable - other 7,913,331 8,882,431
Accrued liabilities 58,291,483 51,646,515
Accrued interest payable 2,712,388 2,739,190
Deferred revenue and deposits 145,342,732
160,109,666
Gift annuities payable 24,893,937 27,420,466
Liability under split interest agreements 784,693 751,930
Other long-term liabilities 2,931,778 3,357,210
Long-term debt, net 191,542,554
194,994,010
Total Liabilities 496,818,038 511,081,508
Net Assets:
Without donor restrictions 3,493,968,692 3,429,256,396
With donor restrictions 33,013,300
31,682,459
Total Net Assets 3,526,981,992 3,460,938,855
Total Liabilities and Net Assets 4,023,800,030$ 3,972,020,363$
Liberty University, Inc.
Schedules of Financial Position - Excluding Subsidiaries
See independent auditor's report.
42
