An American Evolution: American University Annual Report 2013-2014

From the Chair of the Board of Trustees 2
From the President 3
An American Evolution 5
Financial Statements 2013–2014 43
From the CFO, Vice President and Treasurer 45
Independent Auditor’s Report 46
Balance Sheets 47
Statements of Activities 48
Statements of Cash Flows 50
Notes to Financial Statements 51
University Administration 69
Board of Trustees 69

From the Chair of the Board of Trustees
In completing the sixth year of our strategic plan—American University
in the Next Decade: Leadership for a Changing World—we acknowledge
the significant progress AU has made as a competitive university with an
increasingly prominent profile.
As an affirmation of AU’s strategic direction, the Middle States
Commission on Higher Education accreditation report offers high praise
in its decennial review. It commends AU’s impressive recent achievements
and emphasizes that our future task is to maintain this momentum and
uphold the high standards we have set.
In accepting this challenge and planning AU’s future, we know that our
success grows from a solid foundation of people and planning that includes
the following:
• innovative leadership, creative faculty, and engaged students who
pride themselves in change not only for the good of AU but for the
world at large
• strategic planning that provides milestones for academic success and
institutional aspirations
• prudent financial planning that ensures that AU has the resources to
achieve our objectives
• facilities improvements that enhance what we have, build what we
need, and identify what comes next
• alumni, trustees, and donors who are personally involved and provide
significant support critical for future success
This year was unique in that our past planning endeavors—for strategic
goals, academic aspirations, financial planning, facilities projects,
and institutional energy—came together in remarkable ways, yielded
impressive results, and earned praise from external reviewers.
As a board working with the university leadership, we are focused on
affordability, accessibility, and sustainability. And we now build on our
success to take AU to the next level of institutional effectiveness, active
engagement, and academic prestige.
Sincerely,
Jeffrey A. Sine
2

From the President
The past year at American University was extraordinary by any number
of measures.
Every 10 years, the university goes through a public and exhaustive
accreditation process by the Middle States Commission on Higher
Education, which examines every facet of AU’s performance as an
institution of higher learning.
The outcome was a resounding endorsement, as the commission described
AU as a “transformed institution” and one that is “agile, planning intensive,
well governed, and well run.”
We are pleased with the commission’s findings and accept their
conclusion—that AU’s biggest challenge is to continue the considerable
progress of recent years.
Our faculty are innovative and their scholarship relevant in ways that are
raising our academic prestige. This past year more than 100 students and
alumni were recipients, finalists, or alternates in nationally competitive
scholarships and fellowships.
Our facilities improvements are changing the face of campus through
new construction and renovations to meet the needs of our students,
faculty, and staff. The School of Communication moved into its renovated
McKinley Building home; we opened our new Connecticut Avenue home
for WAMU 88.5, Development and Alumni Relations, and University
Communications and Marketing; and work continues both on the
Tenley Campus home of the Washington College of Law and on the East
Campus, which will include residential, academic, and office facilities.
Our alumni are supportive and increasingly engaged, and Eagles athletics
instill pride in AU through competitive success in league and national play
and in classroom achievements.
The stories that follow illustrate how AU is positioned to continue the
progress of recent years and meet the future challenge. Enjoy the report.
Sincerely,
Cornelius M. Kerwin
3

Every decade American University reflects deeply on the progress and
achievements of the university community as we prepare for the campus visit
of the reaccreditation team representing the Middle States Commission on
Higher Education. We examine our accomplishments and areas for growth
as we engage with these university leaders from across the country. This year
the Middle States team found American University to be a “transformed
institution,” featuring exceptional leadership at the management and board
levels, a strong faculty of scholars and researchers from a mix of backgrounds,
and an increasingly diverse student body.
Commendations from the reaccreditation team affirm the innovation
and dedication of the AU community and mark this moment in the American
evolution. We have laid the groundwork for vibrant development and are
committed to cultivating sustainable growth.
AU attracts and engages students of the highest caliber, competing with
internationally renowned schools for ambitious, dedicated students who are
equally committed to learning in the classroom and serving the world outside
it. Accomplished professors conduct pioneering research, both advancing
their fields of knowledge and sharing opportunities for innovative scholarship
with students. Alumni make generous and meaningful gifts in recognition of
how their experiences at AU have changed their lives. New environmentally
sustainable buildings designed with the future of education in mind create
spaces where students can thrive.
American University’s physical presence in Washington, DC, grows more
prominent, as green construction and renovation are under way at the Tenley
Campus, new East Campus, and other state-of-the-art spaces. As delineated
in the university’s 2011 campus plan and approved by the District of Columbia
government, the university will offer nearly 4.6 million square feet of space for
teaching and learning when construction is completed in 2016.
AU students, faculty, and leaders play a unique role in our city, our
country, and our world, contributing a strong desire to learn and serve in equal
measure, all of them enthusiastic participants in the American evolution.

Through the university’s 2008 strategic plan and 2011 campus plan, AU’s leaders imagined the
university’s evolution in intellectual achievement and physical growth. Several years into implementation,
we have renovated residence halls, created academic spaces, opened the new home for the School of
Communication, and made significant progress on the new home for the Washington College of Law.
Generous gifts from alumni support our expansion, including an addition dedicated to DC art at the
American University Museum. Together these capital improvements foster a climate where the highest
quality teaching and learning can thrive and a campus whose connections with the community and the
world are deep.
The academic commitment and intellectual curiosity of our students were exceptional this year,
as demonstrated by the success of more than 100 students and alumni who were named as recipients,
finalists, or alternates of nationally competitive scholarships and fellowships, including Boren,
Fulbright, Truman, Udall, Pickering, and Hollings scholarships.
Students often credit AU faculty with preparing them to win these and other competitive awards.
Many faculty members volunteer their time and expertise. They go beyond their normal academic
duties and make themselves available for advice and practice interviews, a testament to the value that
AU professors place on student development.

Middle States Commission
on Higher Education
American University
is stronger, more
vibrant, more relevant,
and better positioned
as a result of what
has transpired over
the past six years.

the new campus for the washington college of law opens in 2015.

New and renovated buildings
reflect the intellectual rigor
and forward thinking that
take place in the classroom.
With state-of-the-art technology, environmentally
sophisticated construction, and architecturally inviting
design, American University’s new and renovated
buildings reflect the intellectual rigor and forward
thinking that take place in the classroom. Significant
progress has been made toward goals outlined in AU’s
2011 campus plan, including renovated buildings for
WAMU and the School of Communication as well as
new construction on Tenley Campus and East Campus.
In 2013 public radio station WAMU 88.5 relocated
to 4401 Connecticut Avenue NW. AU renovated an
existing seven-story, 96,000-square-foot building to
meet the station’s current and future space needs and
to provide an environment for programming growth.
The station, which has nearly 750,000 listeners, is home
to The Diane Rehm Show, The Kojo Nnamdi Show, and
Metro Connection. WAMU occupies more than half of
the building, with AU administrative offices occupying
the remaining floors. The new studio features a large
window facing Connecticut Avenue to connect the
station with the public.
The School of Communication opened the doors
to its new home in the McKinley Building in January
2014. The renovation of the historic building on main
campus maintained its iconic rotunda and marble
columns while adding a modern glass entrance, a
rooftop patio, digital classrooms, a media innovation
lab, a teleconference suite, the latest communication
technology, and the 145-seat Malsi Doyle and Michael
Forman Theater with 4K projection for master classes
and screenings. McKinley’s state-of-the-art technologies
were made possible, in large part, through a unique
collaboration with Sony Electronics.
Progress continues on the new home for the
Washington College of Law on Tenley Campus. When
finished, the buildings will support a student population
of 2,000 and a faculty and staff of 500 and provide 50
percent more space than current facilities.
Design of the Tenley Campus will create a new
visual identity for the Washington College of Law while
honoring the site’s important legacy. The renovated site
will incorporate the historic Capital Hall and its chapel,
Dunblane House, and the central quad. Scheduled to
open in 2015, the campus will include flexible teaching
courtrooms, student offices for legal briefs and journals,
a ceremonial courtroom, large tiered classrooms, an
updated Pence Law Library, clinic and trial advocacy
teaching spaces, and a dining facility.
Also under construction is the new East Campus,
located on the corner of Nebraska and New Mexico
Avenues. The former parking lot soon will become
modern academic, administrative, and residence
buildings surrounding a central courtyard of green public
space. The buildings, all designed for LEED certification,
will accommodate learning spaces for the mathematics
and statistics, computer science, and physics departments
in the College of Arts and Sciences as well as its
collaborative game design program with the School
of Communication. The Don Myers Technology and
Innovation Building will house offices for approximately
100 faculty and staff, a tiered classroom, a large flexible
collaboration space, a problem-based instructional
studio, computer classrooms, seminar spaces, and
tutoring and study lounges. Adjacent residence halls will
accommodate nearly 600 students and include a fitness
center, meeting rooms, offices, and retail space. East
Campus is slated to open in 2016.
9

AU student-athletes are
as impressive in the
classroom as on the court,
field, or track.
10
Alexis Dobbs, captain of American University’s
women’s basketball team and recipient of the 2014
President’s Award, exemplifies AU’s emphasis on
student-athletes.
She is just one of hundreds of AU athletes who,
while earning impressive results on the court, field, or
track this year, committed themselves to scholarship in
the classroom. In fact, 95 percent of AU’s athletes earn
a degree, compared to the 82 percent national average,
according to the NCAA. That number is a bit higher
for AU’s men’s and women’s basketball teams, whose
graduation success rates are 93 percent and 100
percent, respectively.
The President’s Award is AU’s highest honor for
undergraduates, presented to a graduating senior whose
accomplishments are considered exceptional and reflect
the university’s highest ideals. Dobbs was named Patriot
League Scholar-Athlete of the Year three times, and
her GPA exceeded 3.8. While pursuing a public health
major with a minor in biology in the College of Arts and
Sciences, she also volunteered in the community, serving
as a big sister to a 12-year-old girl who had a brain
tumor. Dobbs plans to become a physician’s assistant,
after being inspired by the medical professionals who
helped her through multiple knee injuries, surgeries,
and rehabilitation.
Two of AU’s athletic teams proved that scholarathletes
can be champions. The men’s basketball team
defeated the top-seeded Boston University to claim the
2013–2014 Patriot League Championship, the team’s
third in seven years. The Eagles, led by first-year head
coach Mike Brennan, made their third appearance in the
NCAA tournament, where the team lost to Wisconsin
in the first round. Preseason rankings had predicted the
Eagles would finish at the bottom of the league after a
disappointing 10–20 record the year before.
The American University women’s volleyball team
made its first NCAA Sweet 16 appearance in program
history, losing 3–1 to defending national champion
University of Texas in the Lincoln, Nebraska, regionals.
AU concluded its season by matching the program
record for wins with 34, winning its 11th Patriot League
Championship in 13 years, and posting its first two
NCAA tournament victories in program history.
A berth in the NCAA tournament is just one
way the men’s basketball team proves they are winners.
Sophomore Jesse Reed, who won the title of Patriot
League Scholar-Athlete of the Year, was one of five
student-athletes on the 2013–2014 Patriot League
Academic Honor Roll. He and junior John Schoof
have twice made the honor roll in their careers. Redshirt
senior Kevin Panzer and freshmen Charlie Jones and
Justice Montgomery made the list for the first time.
The Eagles were one of only four schools to place five or
more student-athletes on the yearly honor roll, finishing
tied for third overall.
Their teammate, Darius Gardner, was the winner
of the 2013–2014 Patriot League Sportsmanship Award.
Gardner also was voted the Most Valuable Player of the
Patriot League Tournament and joined fellow Eagles
Reed and Tony Wroblicky on the All-Tournament team.
Like many of her fellow scholar-athletes, Dobbs
relishes the spirit of competition, and her explanation
of her fondness for basketball could just as well apply
to learning.
“[Basketball] is a game that you can never be too
good at playing. There’s always some aspect that you can
improve, all the time. It’s just something that you can’t
master. You can work towards perfection, and that’s the
fun of it,” she said.

alexis dobbs, cas ’14, received AU’s president’s award.

carolyn alper, cas ’68, supports washington artists at the au museum.

A generous gift to the AU
Museum will provide a place
for Washington artists to
meet and talk about art.
Thanks to a major gift from AU alumna and art
advocate Carolyn Alper, CAS/BA ’68, the American
University Museum at the Katzen Arts Center will soon
feature a dedicated space for Washington, DC, artists.
The Alper Initiative for Washington Art will enable
AU students and faculty and members of the public
to learn more about local art through exhibits, events,
gatherings, lectures, and films. The endowment will
also support digitization of AU’s growing collection of
works by Washington artists, allowing it to be more
accessible for study.
“I’m at a point in my life where I want to give
back, and I decided that AU was the place that’s given
me the most in my art life,” said Alper, who earned her
art degree from AU as an adult student when her kids
were teenagers. “It took me about three years to finish
one year, but I really loved it and loved what I learned
and have always been grateful for what I learned. It
whet my appetite for art history.”
Alper’s vision is a home for DC art that draws art
aficionados from around the metropolitan area and
beyond. “Carolyn’s gift provides American University
Museum the funds necessary to elevate Washington
art to the place of prominence it deserves,” said AU
Museum curator and director Jack Rasmussen. “All of
Washington should be grateful, as Carolyn has put her
contributions where her heart is.”
Alper, an artist, designer, and patron of the arts, is
also an alumna of the Corcoran College of Art. She was
a founding member of the Foundry Gallery, a nonprofit
artist-owned cooperative gallery that has showcased DC
artists for more than 40 years.
“The programming will be innovative and
different,” she said. “I want it to be on the edge.”
Alper hopes the space will provide an opportunity for
Washington artists “to meet and greet and talk about
art.” She also envisions public programs where artists
are invited to discuss their work, how they develop
their work, how they feel about the Washington, DC,
art scene, and more. “There are so many artists whom
I know and younger ones coming up,” she said, and a
lack of space where local artists can show their works.
Rasmussen has made Washington art a priority
at the AU Museum with two Washington Art Matters
exhibits and opportunities for regular displays of works
by Washington artists. A reviewer with Washington City
Paper recently wrote, “For almost a decade, the de facto
museum of DC art has been at American University.
The case has been made: Washington art does matter.
All we need is the wall space to display it.”
Alper’s gift coincides well with the opportunity
for the museum to incorporate into its collections
art from the now-defunct Corcoran Gallery of Art.
As the National Gallery of Art takes custody of the
Corcoran’s collection, some of its Washington art will
be distributed to other organizations.
The design of the new space will be contemporary,
and Alper anticipates that it will stand out from the
current museum and include interactive technology. “I
think it will bring people to the Katzen more often. It’s
a terrific space,” Alper said.
The Alper Initiative for Washington Art is
expected to open in August 2015.
13

14
Innovative research, meaningful scholarship, and personal interactions with students are the
hallmark of AU’s diverse and accomplished faculty. The report from the Middle States reaccreditation
team said that evidence exists within the university of profound contributions at the faculty level.
The team found that AU undergraduate education is highly effective in the application of knowledge
through service learning and study abroad and commended AU’s general education program and the
interdisciplinary nature of university programs.
AU strives toward the “scholar-teacher ideal” outlined in its strategic plan with an enhanced
infrastructure that supports and promotes high-impact faculty scholarship and teaching excellence.
In the fall of 2013, AU hired more than 100 full-time faculty, including 23 new tenured or tenure-track
faculty. These professors bring expertise and illumination to such topics as genome architecture, inner-city
economic development, and gender representation in public institutions.
The university created 10 new master’s degree programs in 2013–2014—including four online
degrees—that reflect emerging needs and interests in our society. New study areas are bilingual
education, interactive journalism, international economics, teaching English as a foreign language,
nutrition education, game design, public administration and policy, and terrorism and homeland
security policy.

Middle States Commission
on Higher Education
. . . to strive for the
scholar-teacher ideal,
the institution has
raised expectations
for faculty with
respect to high-impact
scholarship, creative
work, external funding,
and teaching excellence.

The “West vs. the rest”
paradigm needs to be
supplanted by “global
international relations.”
16
In his book The End of American World Order,
Amitav Acharya argues that the dominant position of
the United States in world politics is coming to an end.
Not to suggest that America is in decline, he explains,
but rather that with increasing global complexity, it will
be impossible for any nation to hold so much power.
Acharya suggests that cooperation and interdependence
among nations will become increasingly important.
Acharya, professor in the School of International
Service and UNESCO Chair in Transnational
Challenges and Governance, was named 2014–2015
president of the International Studies Association
(ISA). He delivered a presidential address at the
annual ISA convention, in which he drew parallels to
the increasing irrelevance of Western hegemony as a
rational framework both in the current world order and
in the study of international relations. Acharya is the
first non-Western president of the association in its 55-
year history.
“International relations as a discipline has been
very Western-oriented, or at least so in terms of the
theories and literature of it. With the increasing
popularity of this discipline in schools worldwide,
I would hope the literature would become more
global and inclusive, too,” he said. The “West vs. the
rest” divide is an outdated paradigm and one that
needs to be supplanted by what Acharya calls “global
international relations.”
Acharya explained that he does not want to
emerge as a divisive figure in international relations.
Instead, he hopes to suggest a new sense of universalism
based on diversity. “It is about recognizing diversity and
trying to find a common ground,” he said. He predicts
that regional studies will become more prominent as a
field, reflecting the understanding that diversity
is crucial.
Acharya challenged his colleagues to think beyond
the Western perspective when contemplating theories
of international relations and to consider his concept
of non-Western international relations theory, which
he and colleague Barry Buzan of the London School
of Economics published in an edited volume in 2013.
Acharya’s speech resulted in a standing ovation from
the large convention audience and was followed by a
reception in his honor.
Other participants in the ISA convention,
titled “Spaces and Places: Geopolitics in an Era of
Globalization,” included approximately 30 SIS faculty
members and a dozen doctoral students who presented
their research.
Acharya has been appointed to visiting
professorships and fellowships at universities in
Australia, Malaysia, Singapore, South Africa, Thailand,
and the United Kingdom. He has lectured and
spoken around the world and addressed the United
Nations General Assembly on the subject of human
security. He has published more than 25 books and
200 journal and magazine articles, written numerous
op-eds for international newspapers, and appeared in
media broadcasts worldwide discussing such topics as
international security, the war on terror, and the rise of
China and India.
Acharya was born in India and educated in both
India and Australia. He lived and worked in Singapore
for 12 years and is regarded as one of the world’s top
specialists on Southeast Asia and Asian affairs.

Amitav Acharya, SIS, sees a more cooperative, interdependent world.

ellen feder, cas, advocates for children born with atypical anatomy.

The “problem” of
intersex is one of moral
responsibility to children.
In her book Making Sense of Intersex: Changing
Ethical Perspectives in Biomedicine, published in 2014,
AU philosophy professor Ellen Feder advocates for
children. Often when babies are born with atypical
sex anatomies, parents and doctors approach this as
a problem to be fixed and never mentioned again,
without understanding the long-term physical and
psychological effects on both children and parents.
Making Sense of Intersex grew out of a paper that
Feder coauthored in 2012 on the ethics of using a
prenatal drug intended to prevent the development of
ambiguous genitalia in girls with congenital adrenal
hyperplasia, a condition that can develop when a
fetus is in utero. The book earned a Publisher’s Weekly
starred review.
Feder was asked to present a paper about intersex
at the first-ever session on the topic at an American
Philosophical Association conference in 2000. That one
presentation led to many more.
“Looking back, I see what I was doing over these
years as working to clarify ‘the problem’ of intersex,”
she said. “Doctors—and often parents—see the
problem as atypical genitalia, but learning more about
‘the problem,’ both as it is understood today and how it
has been understood historically, led me to see intersex
as a problem of moral responsibility and of a failure—
however well-intentioned—of physicians’ and parents’
responsibility to the children they care for.”
The more she studied the medical treatment
of intersex and spoke with parents and affected
individuals, as well as medical specialists, the more
she felt compelled to convey the knowledge they had
shared with her. “What I learned—especially from the
stories that mothers of children with intersex told me—
was not only the effects of lies and surgeries on their
children, but how the deception and silence affected
parents as well.”
Feder sees the labeling of atypical genitalia as
“abnormal” as part of the problem. Normalizing
medical interventions—altering the genitalia using
surgical, hormonal, and other technologies—does
exactly what the term implies.
“If atypical genitalia are regarded as ‘abnormal,’
then the interventions attempt to make that
abnormality disappear, to make it seem as if there
had never been anything atypical about this child’s
anatomy,” said Feder. “The silence surrounding surgery
is an integral part of the medical management of
atypical sex anatomy.”
Rather than treating children with atypical sex
anatomies as if the children themselves are abnormal,
Feder believes that children should be treated just like
anyone else. “Asking how they should be cared for
suggests that there might be some difference in the
way they should be cared for,” she said. “But that’s
just it: they should be cared for as any child is entitled
to be cared for, namely with love and respect and an
openness to who the child is and will be.”
Feder hopes that readers take a different view of
those born with atypical sex anatomies. “Not fitting
in, being excluded from membership, is painful,” she
said. “Parents and doctors want to ‘fix’ children so that
they will feel this belonging and be spared the pain of
abnormality. But what if we see the problem not in the
bodies of children but in the attitudes that make those
with atypical sex anatomies not feel normal?”
19

Higher prices for fruits and
vegetables have a significant
association with higher
child body mass index.
Higher prices for fresh fruits and vegetables are
associated with higher body mass index (BMI) in
young children in low- and middle-income households,
according to a study published in the journal Pediatrics
by American University researchers.
“There is a small, but significant, association
between the prices of fruits and vegetables and higher
child BMI,” said Taryn Morrissey, the study’s lead
author and a professor of public administration and
policy at AU’s School of Public Affairs (SPA).
Morrissey said that when the prices of fruits and
vegetables go up, families may buy less produce and
substitute cheaper foods that may be less healthy and
more caloric.
“These associations are driven by changes in the
prices of fresh fruits and vegetables rather than frozen
or canned,” said Alison Jacknowitz, a coauthor of the
study and also a professor of public administration and
policy at SPA.
BMI is a reliable indicator of total body fat,
which is related to the risk of life-threatening diseases.
More than 26 percent of two- to five-year-old children
nationwide were considered overweight, defined as
having a BMI above the 85th percentile, in 2009 and
2010, up from 21 percent a decade earlier.
The researchers linked data from the Early
Childhood Longitudinal Study-Birth Cohort, a
nationally representative study of children from infancy
to age five, to local food price data from the Council
for Community and Economic Research Cost-of-
Living Index. The study focused on households under
300 percent of the federal poverty level, or a family of
four earning $70,650 in 2013.
While, in general, food prices have trended
downward in recent decades, particularly the prices
of snacks and sugar-sweetened beverages, the real
prices of restaurant meals and fruits and vegetables
have increased. Fruit and vegetable prices increased by
17 percent between 1997 and 2003 alone. Children
living in areas with higher-priced fruits and vegetables
averaged higher measures of BMI scores compared
with their peers in areas with lower-priced fruits
and vegetables.
Another surprising finding was an association
between higher fast food prices and an increase in
obesity. Morrissey said local fast food outlets may have
more freedom than grocery stores to increase their
prices in response to higher demand for their products.
The study also identified a small association
between higher-priced soft drinks and a lower
likelihood of obesity among young children. The study
did not find strong associations between food prices
and food insecurity, which means that families are
forced to skip meals, cut portions, or otherwise forgo
food because of a lack of money.
The third coauthor of the article, “Local
Food Prices and Their Associations with Children’s
Weight and Food Security,” is SPA doctoral student
Katie Vinopal.
20

spa’s Taryn Morrissey, Katie vinopal, and Alison Jacknowitz
study the link between food prices and children’s weight.

The American Astronautical Society honored School of Public Affairs
professor Howard McCurdy with its John F. Kennedy Astronautics
Award, given for outstanding promotion of the nation’s space
programs. A list of previous award winners reads like a NASA hall
of fame, including former astronauts Buzz Aldrin and Sally Ride and
science writer Carl Sagan. NASA tapped McCurdy to form a space
policy group to examine how public-private partnerships can foster
innovation in space flight.
With his expertise in science policy, McCurdy has authored books
such as Space and the American Imagination and Faster, Better,
Cheaper: Low-Cost Innovation in the U.S. Space Program. As part
of a larger project to analyze other endeavors that could provide
lessons for space exploration, McCurdy researched Mt. Everest
climbing expeditions and compared advances in climbing culture
with opportunities for innovation in space technology
through commercialization.
Only a few years after its creation,
the AU Mock Trial team is a nationally
recognized name. Competing against
more than 650 teams from more
than 330 colleges, the AU team
placed fourth in its division and
eighth in the country at the American
Mock Trial Association’s National
Championship Tournament.
AU staffer Donald Curtis runs
the nonprofit Student-Athletes
Organized to Understand Leadership,
or SOUL, which uses athletics as a
gateway to academic and professional
development for teenage boys in
Washington, DC.
Economist Jeffrey Harris joined the Kogod School of Business as
the first Gary D. Cohn Goldman Sachs Chair in Finance. The chair
was created through the generosity of Cohn, Kogod/BSBA ’82, and
Goldman Sachs, where Cohn is president and COO. Harris served as
chief economist at the U.S. Commodity Futures Trading Commission
from 2007 to 2010 and has taught at the University of Delaware and
Syracuse University.
Harris began conducting groundbreaking research early in his
academic career. His first published paper examining conflicts of
interest between market traders and regulators led to a major
restructuring of the NASDAQ stock market in the mid-1990s. “That
paper definitely kick-started my career,” Harris said. “I discovered that
I liked grinding away at big data sets and wasn’t too bad at it.” From
there, Harris began looking at economic issues related to day trading
and initial public offerings.
In 2005, Harris presented his research on electronic trading to the U.S.
Commodity Futures Trading Commission just as futures trading pits
were giving way to electronic trading. Harris’s current areas of research
examine trading networks and explore how market rule changes affect
trading behavior.
22

Stephen Macavoy
assistant professor, Cas
Fewer chemicals
entering our
waterways is crucial
to ecosystem health.
People want to live
in nice, clean cities,
and greening our
cities must be a
priority for all of us.
Stephen MacAvoy, an environmental
science professor in CAS, studies
nutrient movement in aquatic
systems, most recently focusing on
the Anacostia River. His research has
shown that installation of green roofs
throughout Washington, DC, would not
only reduce energy use in buildings
but also help keep pollutants from
entering the city’s waterways.

After decades of military rule, Myanmar slowly began to open up the
government and the country in 2010. As part of the new order, UNICEF
was asked to conduct an in-depth study of the country’s basic education
system and how it could be improved and its complex administrative
structure decentralized. In turn, UNICEF tapped AU professor Nimai
Mehta to lead the investigation. Mehta is academic director of the Global
Economics and Business section of the Washington Semester Program at
AU’s School of Professional and Extended Studies and leads the school’s
programs in China and Europe.
Mehta’s team focused on analyzing the education system in Mon State,
chosen because of the longstanding ceasefire there from ethnic conflicts
that have arisen since the country’s independence. The study included
questions about how schools have managed in the midst of ethnic
conflict, widespread poverty, inequality, and the legacy of a closed and
stagnant economy. The team included ethnographers from China, a
professor from the University of London, and Mehta’s AU colleague
Mary Gray from the mathematics and statistics department in the
College of Arts and Sciences.
While the public education system has long been centralized, first by
the British and later under the control of former military governments,
local communities have supported individual schools out of necessity.
The UNICEF report will contribute to the ongoing education reform
efforts in Myanmar.
A team of master’s students from
the School of International Service,
led by instructor Eric Abitbol, spent
12 days in Israel and the Palestinian
West Bank studying the role of water
management in efforts to create
peace instead of conflict.
Enterprising AU students turned their
academic studies in sustainability into
a real-life opportunity to promote
water conservation. Their research
found that replacing existing aerators
on faucets throughout the university
with low-flow models would result in a
significant reduction in water usage—
a projected savings of 570,000
gallons and $10,000 per year for AU.
24
Three Washington College of Law graduates who connected through
the law school’s Human Rights Brief launched a nongovernmental
organization in Nigeria that provides judicial advocacy and trains
citizens of urban slums in law and community organizing to help them
reform their country’s justice system.
Megan Chapman ’11, Anna Maitland ’12, and Andrew Maki ’12
joined forces to develop Justice and Empowerment Initiatives ( JEI)–
Nigeria. “We provide them with basic training in the law, community
organizing skills, and supervision as they begin to provide services in
their communities,” said Chapman. “JEI will also serve as a link to a
broader referral network for those more complicated cases that require
the work of a lawyer or higher-level advocacy.”
Chapman, Maitland, and Maki became involved with international
issues in law school. Through their collective experiences with the
United Nations Committee against Torture Project, International
Human Rights Law Clinic, and Human Rights Brief, Maki said they
have been able to “use our acquired knowledge of the international
human rights system to push forward human rights in Nigeria.”

laura juliano
associate professor, cas
The negative effects
of caffeine are often
not recognized as
such because it is
a socially acceptable
and widely consumed
drug that is well
integrated into
our routines.
A study by AU psychology professor
Laura Juliano indicates that many
people struggle with caffeine use
disorder, a condition in which they
are dependent on caffeine to the
point that they suffer withdrawal
symptoms and are unable to reduce
caffeine consumption even if they have
another condition—such as pregnancy
or a heart condition—that makes
caffeine use inadvisable.

The inaugural class of Frederick Douglass Distinguished Scholars
graduated in 2014, and the scholars are already demonstrating their
promise and passion, earning prizes and recognition as individuals
and as a team. These scholars are high achievers committed to social
justice and the advancement of under-resourced and underserved
communities. The students receive scholarships covering tuition, room,
board, fees, and books for all four years, if they maintain a 3.2 GPA.
Scholars who earn at least a 3.67 GPA can get supplemental funding to
study internationally.
Among the scholars is Nkemdilim Chukwuma, who won first prize,
including scholarship money and an internship, in the 2013 Executive
Leadership Foundation national essay competition during her
sophomore year.
Graduating senior Falon Dominguez interned at Google and received a
permanent job offer there. A double major in international studies and
economics, Dominguez volunteers for Voto Latino.
Rodrigo Futema traveled to Rwanda after his freshman year and
decided to work in the business world of soccer, using it as a tool for
economic development and social good.
As a team, Frederick Douglass scholars founded FotoSynthesis, an
education initiative to connect students through social media and
photography. For an Adobe Youth Voices–UNICEF challenge, the
group recently created an online video refuting racial and cultural
stereotypes and won $30,000.
In association with AU’s School
of International Service, the
French-American Global Forum
and French newspaper Le Monde
diplomatique created “Le Monde
Diplomatique Debates—Washington,
DC” to tackle the most consequential
issues in international politics today.
Daniel Maree, SOC-CAS/BA ’08,
launched the Million Hoodies
Movement for Justice in response to
the fatal shooting of Florida teenager
Trayvon Martin. For his efforts to
promote gun law reform and challenge
racial profiling, Maree received the
2013 Do Something Award, which
included a prize of $100,000.
Repelling from helicopters. Handling millions of dollars of equipment.
Traveling the globe. After 17 years of service in the U.S. Army, Lt. Col.
George Gilbert Jr. has faced challenges few can relate to. The global
health systems analyst for the Defense Intelligence Agency returned
from the field and enrolled in Kogod’s professional MBA program.
Gilbert has found that many of the skills he learned in his military
career have helped him succeed at Kogod. “The PMBA program
requires a lot of self-discipline and time management skills,” he said.
“The military enforces these skills very early in one’s career.”
Gilbert has always valued higher education—something his parents
did not have themselves yet stressed to him during his childhood. He
took the lesson to heart, earning master’s degrees in military arts and
sciences from the U.S. Army Command and General Staff College and
in science and technology intelligence from the National Intelligence
University. Now, at Kogod, Gilbert is committed to continually
improving himself.
26

Caty borum chattoo
EXECUTIVE IN RESIDENCE, SOC
My professional
passion is . . .
translating complex
social issues
into entertaining
narratives, connecting
with untold stories
through documentary
production.
By traveling the developing world in
search of comedic talent, Stand Up
Planet demonstrates that it’s
possible to use humor to shed light on
complex social issues, such as global
poverty. One of the collaborators
behind the documentary series is
School of Communication executive in
residence Caty Borum Chattoo, shown
here with comedians Norman Lear
and Carl Reiner.

Wikipedia has often been scorned by academia, but School of
Communication professor Andrew Lih is bridging the gap between
traditional scholarship and technology-focused democratic data. Lih
studies the intersection of new media, journalism, and technology and
is one of a handful of the country’s experts on Wikipedia—the online
encyclopedia written entirely by volunteers.
Lih’s students are helping some of Washington’s most important
galleries, libraries, archives, and museums (GLAM) to share their
vast stores of knowledge with broad audiences. Partners in this effort
include the Smithsonian American Art Museum, the National Museum
of the American Indian, the National Archives, and the Library of
Congress. Lih has connected museum curators, who possess significant
knowledge of their collections, with tech-savvy students, who figure out
how to best convey that information to Wikipedia readers.
Wikipedia, said Lih, provides something that’s never been possible
before: “A storehouse of knowledge that works at the speed of human
achievement. A continuous working draft of history.”
Barbara Romzek, dean of the
School of Public Affairs, received
the 2014 John Gaus Award from
the American Political Science
Association. Romzek, an expert in
public management and accountability,
is the third AU faculty member to
receive this award.
AU hosted President Barack Obama
as a featured guest on a taping of
MSNBC’s political talk show Hardball
with Chris Matthews. The president
fielded questions about health
care, privacy concerns, economic
justice, government spending,
and other issues.
AU students and faculty have been active in advocating for the rights
of people with disabilities, and several have been recognized for their
efforts. Robert Dinerstein, director of the clinical program, associate
dean for experiential education, and founder and director of the
Disability Rights Law Clinic at the Washington College of Law and
AU’s 2013 Scholar-Teacher of the Year, received the American Bar
Association’s Paul G. Hearne Award for Disability Rights for his
decades of dedication.
Eloisa Zepeda, SIS/MA ’12, and John Paul Cruz, SIS/MA ’13,
were honored for their outstanding work in international disability
policy. Originally from the Philippines, both experienced severe
visual impairment in their 20s but have turned their disabilities into
motivation to become advocates. Zepeda was appointed a regional
representative of the Global Coalition of Tuberculosis Activists. Cruz
was a fellow of the Salzburg Seminar in Japan.
Ki’tay Davidson, SPA/BA ’13, was honored by the White House
and spoke on a panel there as a Champion of Change for his work
advancing the Americans with Disabilities Act.
28

NEIL KERWIN
President
AMERICAN UNIVERSITY
American University
is firmly on its way
to achieving carbon
neutrality by 2020.
We are now a partner
to the second-largest,
non-utility solar
energy purchase in
the United States.
AU has agreed to source half its
electricity from renewable power through
a 20-year solar energy purchase with
partners George Washington University
and George Washington University
Hospital. The project will supply the
partners with 123 million kilowatt hours of
emissions-free electricity per year, drawn
from 243,000 solar panels at three sites
in North Carolina.

American University’s location in the nation’s capital, within a few miles of one of the most
influential governments in the world, enables the university to serve both as a hub that attracts local,
national, and international leaders and as a launching pad for students and faculty to represent AU
across the globe. AU has cultivated vital partnerships with government, the business sector, and
nonprofit organizations to facilitate teaching and learning that transcend the campus.
Speeches from inspirational and influential individuals from Washington and around the world
create unique learning opportunities for AU students and faculty. President Barack Obama joined
MSNBC’s Chris Matthews at a taping of Hardball on campus, and CNN’s Anderson Cooper accepted
the 2013 Wonk of the Year Award. Other well-known speakers included Dick Cheney, Ron Paul,
Liu Yangdong, David Gregory, Lily Ledbetter, and Jessica Yu.
Not only does the world come to AU, but AU students explore the world. More than half of AU
students study abroad, and AU welcomes students from more than 130 countries. Nearly 90 percent
of AU students participate in internships based in DC, elsewhere in the United States, or abroad.
It’s not uncommon to find AU students working in the halls of Congress, at top media outlets, or at
cutting-edge technology companies.

Middle States Commission
on Higher Education
The university’s
presence in Washington
provides an invaluable
source of term
faculty . . . who add
considerably to the
experiential and
‘real-life’ learning for
the students.

To learn from and work
with veteran reporters
is a dream come true for
journalism students.
32
Access to the newsroom of the Washington Post
might be exciting enough for a journalism student,
but the opportunity to work with and learn from
veteran Post reporters and have bylines in the paper is
a dream come true. This year AU and the venerated
newspaper created a collaboration that enables a select
group of students in the School of Communication
to work under the direction of Pulitzer Prize–
winning investigative journalist and SOC professor
John Sullivan as part of the Investigative Reporting
Workshop (IRW).
Sullivan moved to Washington to join the
SOC faculty as a full professor and investigative
journalist in residence. His faculty position is just
one of three hats he now wears. As part of an unusual
joint-hiring arrangement, he’s also a senior editor at
IRW. And he’s a member of the Post’s award-winning
investigations unit.
IRW executive editor Chuck Lewis said that a
university hiring a Pulitzer Prize–winning reporter in
collaboration with one of the nation’s leading daily
newspapers is unprecedented.
The arrangement offers a chance for Sullivan
to continue reporting; exposes students to the pace,
demands, and standards of a working newsroom;
gives those students a chance to work on stories and
investigative projects; and provides Post reporters with
extra help from some well-trained and highly motivated
future journalists.
Students can even pitch investigative story ideas
to Sullivan and, with his approval, develop them. The
Post will run those stories that meet the newspaper’s
standards and are pertinent to the Post’s readership.
Other leading journalism schools have taken note
of the innovative partnership. Several already have
contacted Sullivan for advice on how to replicate this
new model. But for now, it’s an SOC exclusive.
“It’s a tremendous benefit to our students to work
alongside these people,” Sullivan said. It’s also “a way to
give them what they need—clips—but the kind of clip
they can’t get anywhere else: an investigative clip from
the Washington Post.”
At the Post, investigations editor Jeff Leen called
it “a terrific arrangement for all parties.” Acquiring the
necessary investigative reporting chops, Leen pointed
out, has always happened in ways somewhat like this.
“Older veterans have taught newer people this skill
since the beginning of time, so the mentorship aspect
is nothing new to us.”
Previously Sullivan worked for nearly a decade
at the Philadelphia Inquirer, where he covered the
war in Iraq, state government, city hall, science, and
health and was a member of the paper’s investigative
team. Sullivan’s stories have forced officials to answer
for systemic failings and undertake an overhaul of
the city’s child welfare system, restructure criminal
courts after it was shown that people charged with
violent crimes escaped conviction on all charges in
almost two-thirds of cases, and terminate a U.S.
Environmental Protection Agency program that had
allowed corporate polluters to burnish their green
image. Most recently, Sullivan led a team of five
reporters who examined violence in the Philadelphia
schools. The series won the Pulitzer Prize for Public
Service in 2012, a Casey Medal, and an Investigative
Reporters and Editors Award.

john sullivan serves as soc professor, senior editor at the
investigative reporting workshop, and journalist at the washington post.

Julia Finkel, MD, at Children’s National medical center and Kogod MBA
students developed a smartphone diagnostic device and app.

A successful collaboration
allows all partners to
gain valuable professional
perspectives.
Kogod School of Business MBA students were
part of an innovative collaboration that designed the
prototype for the pupilometer, a device that doctors can
use to diagnose everything from the level of opiates in
the bloodstream to a mild concussion. The pupilometer
is a small plastic tube that takes a measurement of the
pupil and sends information to a smartphone app.
The Kogod students worked with students from
the International Design Business Management (IDBM)
program at Finland’s Aalto University and a team
from the Sheikh Zayed Institute for Pediatric Surgical
Innovation at Children’s National Medical Center.
Beyond developing a useful diagnostic tool for children,
the pupilometer project enabled all involved to gain
valuable new professional perspectives. For the MBA
students, the partnership meant approaching a project
with increased creativity.
The Aalto students “made me realize that a good
product isn’t just about cost and profit but also about
user experience and customer needs,” said Nick Elefante,
Kogod/MBA ’14.
Design students learned process from their Kogod
colleagues. “We came away from this experience with a
better appreciation for time management,” said IDBM
student Alex Rodichev. “Our friends at Kogod were so
efficient in all our dealings with the client and were very
respectful of their time and ours.”
While MBA students aren’t experts in medical
device construction—and designers might not be well
versed in creating a business plan—together, the three
teams created a functional device that will enter the
market quickly and be used by a broader audience.
“It’s been a phenomenally fruitful set of
partnerships,” said Julia Finkel, MD, the project’s
medical director at Children’s National and a specialist
in pediatric pain management. “By tying together
the device design with the business plan development
and market strategy, we’ve been able to cut the project
timeline down significantly.”
Instead of designing and constructing a prototype
in the lab alone, Finkel and Carolyn Cochenour, the
lead technician on the project, worked in tandem with
the students. Cochenour said working with students
who did not have medical training enabled the team to
address important usability questions that the medical
team might not have anticipated. While the primary
market for the pupilometer will be medical professionals
in a hospital setting, the product may also be a useful
field diagnostic tool for first responders and medical
volunteers with less formal training.
“The pupilometer is a screening tool meant to
guide follow-up treatment,” Finkel said. “Its connection
to a smartphone means it could be used anywhere,
from a high school football field to the scene of a
roadside accident.”
Pending regulatory approval, Finkel and Cochenour
expect the device to enter the market within the year.
The pair also hopes the collaboration among the schools
and hospital will continue.
“Projects like this are an incredible opportunity for
our students and our partners,” said Mark Clark, faculty
program director for the full-time MBA. “A successful
collaboration really shows our students what kind of
professional partnership to strive for.”
35

AU attracts students and faculty who want to make the most of living, studying, and working in
Washington, DC. The proximity to government agencies and nonprofit organizations and associations
provides a wealth of opportunities for involvement and education outside the classroom. AU students
are motivated to take what they’re learning into the community and bring new insights back into
the classroom. AU faculty and staff lead community-based organizations and facilitate connections
between students and those in need in the DC area. As a result, 1,000 students participated in service
learning courses, spending nearly 40,000 hours volunteering.
Many students further engage with communities beyond DC by leading or participating in
Alternative Break trips to both domestic and international destinations. These student-led trips partner
with community organizations worldwide to address social justice issues such as education, immigration,
refugee rights, youth empowerment, conflict resolution, food security, and cultural preservation.
Long after graduation, alumni also demonstrate the importance of applying academic investigations
to real-world problems. Whether it’s through establishing organizations to serve the disadvantaged,
advocating for the rights of others, or mentoring the next generation of AU students, the values cultivated
during their time at AU motivate alumni to effect positive change in the world.

Middle States Commission
on Higher Education
[AU] coordinates its
course offerings with
cocurricular activities
. . . that attest to its
commitment to
promoting community
service and to creating
opportunities to
understand diverse
perspectives.

penelope spain, WCL ’05, and whitney louchheim, WCL ’05,
connect juvenile offenders with law student mentors.

WCL mentors challenge
young offenders to imagine
a life outside the criminal
justice system.
Whitney Louchheim, WCL/JD ’05, and Penelope
Spain, WCL/JD ’05, witnessed the child welfare and
rehabilitation systems up close when they were students
at the Washington College of Law. Appalled by the
circumstances that many kids faced and convinced that
they could thrive given the right support, Louchheim
and Spain created Mentoring Today to provide the
opportunities kids lacked.
Like generations of American University students
before them and waves still to come, Spain and
Louchheim came to Washington in the fall of 2002
to make a difference. “We just needed to define it,”
recalled Spain.
Meeting on the first day of law school orientation,
the women talked for hours about their childhoods,
their spirituality, and their desire to use their law
degrees for good—whatever that might look like.
A budding interest in juvenile justice solidified
their bond.
Spain shadowed a public defender at Oak Hill
Youth Center, a now-defunct juvenile detention
center replaced by a facility named New Beginnings.
Louchheim clerked for a magistrate judge in DC
Superior Court’s child abuse and neglect division. In
2003, the pair founded Students United as a way to
match WCL student mentors with 16- to 21-yearold
inmates at Oak Hill with the goal of enabling
the young men to successfully reintegrate into their
neighborhoods and become responsible citizens.
Mentoring Today now draws its corps of volunteers
exclusively from Students United. Over the past nine
years, Mentoring Today has matched 58 mentors with
64 mentees.
Mentors and mentees get to know each other
over games and food in the New Beginnings cafeteria.
Early on, the mentors’ job is to encourage the young
offenders to take accountability for the choices that
landed them behind bars and challenge them to
imagine a life outside the criminal justice system. As
release dates approach, mentors switch into advocacy
mode, sitting in on meetings with the Department of
Youth Rehabilitation Services and social service officials
to negotiate the terms of release and ensure housing,
education, mental health, and employment needs are
addressed. That’s where the volunteers’ legal training
comes into play.
Louchheim and Spain are both defense attorneys by
day and have grown Mentoring Today from a closet-sized
office near what was then an open-air drug market in
a park in Northeast DC. While preparing to take the
bar exam, they were also applying for nonprofit status,
researching insurance, and learning how to write
grant proposals.
Nine years later, they have seen meaningful
success, including mentees who have gone on to
become mentors themselves. Some Mentoring Today
graduates created the FREE Project to advocate for
education and employment opportunities for kids
caught up in DC’s criminal justice system.
The positive results for mentees are evident in
the statistics. Nationally, 45 percent of mentoring
relationships last 12 months. Twice as many of
Mentoring Today’s matches—90 percent—hit the
year-mark and, in fact, most pairs work together
for about two and a half years. Under the guidance
of the WCL students, 97 percent of youth active
in Mentoring Today enroll in school or a GED or
vocational program upon their release—compared to
only 57 percent of juvenile offenders nationwide.
Many go on to college. Seventy-one percent also
obtain part- or full-time employment.
39

Unsung Heroes of
Compassion honors
those who work to alleviate
the suffering of others.
40
College of Arts and Sciences alumna Susan Dix
Lyons can look back at her time at AU in the 1980s
and see how her literature degree and involvement in
social justice activism led her to receive an award from
the Dalai Lama.
Inspired by her grandparents’ journeys through
Latin America and her own experience as a journalist in
Central America, Dix Lyons traveled to Nicaragua and
decided to create Clinica Verde, a sustainably designed
clinic for families living in poverty in rural Nicaragua.
Nicaragua is the second-poorest country in Latin
America and has the highest rate of adolescent fertility.
One in four pregnancies occurs to a teen mother, while
one in five children is chronically malnourished.
The clinic opened in January 2012 after four years
of fundraising, designing, and building and now serves
more than 14,000 patients annually. The clinic provides
women’s health services, such as prenatal care, health
education, and cervical cancer screenings; children’s
healthcare, including wellness visits, immunizations,
and nebulizations; adolescent healthcare and sexual
reproductive health education; and care for adults,
including disease care, counseling, and nutrition
education. The clinic also has a pharmacy and is raising
money to open an on-site laboratory.
“We’re at a stage now where we’re exploring how
we can expand our impact,” Dix Lyons said, “whether
through helping to design and build other health
hubs such as ours, developing as a site for training and
education, social franchising—or even bringing our
model to underserved areas in the U.S. We’re looking
for experienced partners and people with big visions.”
In February 2014, the Dalai Lama hosted an
event called Unsung Heroes of Compassion, which
honors individuals who “work to alleviate the suffering
of others without expectation of reward.” The event
has been held four times since 2000, and this year
Susan Dix Lyons was among the 51 honorees from
around the world.
Dix Lyons said American University shaped the
path she has followed. “I had incredible professors
who encouraged and inspired me, and I developed
friendships with people who influenced my values and
ambitions in a very positive way,” she said. “There was
an activist culture while I was there that allowed us to
really engage with the things we cared about. We were
passionate and excited to contribute and find a sense
of purpose, and we had a lot of fun. I left AU ready to
take on big challenges.”
Dix Lyons credits her literature degree with
introducing her to new perspectives, ideas, and
passions that affected how she approaches every
challenge she faces. It also provided the basis for her
communications skills, which she still practices by way
of short perspective pieces that she records for KQED
in San Francisco. She also teaches Media and Social
Innovation as an adjunct professor at Pacific Union
College in Angwin, California.
Her advice to students is, “Say yes to every
opportunity to grow. . . . Throw yourself out there, and
don’t give up on your vision for a better world in which
you play a critical part.”

susan dix lyons, cas ’89, was honored by the dalai Lama for
establishing a sustainable clinic to serve the poor of nicaragua.

From the CFO, Vice President and Treasurer
We were deeply saddened this past year by the passing of our friend,
colleague, and longtime chief financial officer, vice president and treasurer
Don Myers. His extraordinary career at American University spanned
four decades, including 32 years as CFO. His legacy includes securing the
university’s long-term financial health and developing the resources, facilities,
and grounds to support AU’s academic programs and aspirations. During
his tenure as CFO, the university’s endowment increased from $7 million to
$550 million; the operating budget grew tenfold to $600 million; and total
assets increased fourteen-fold to $1.4 billion. Happily, Don lived long enough
to see his lifelong dedication to AU bear tremendous fruit and make a visible
difference in the physical campus for generations to come and in ways that
enrich the lives of current and future students, faculty, and staff.
We continued to make significant progress in many areas this past year.
Moody’s Investors Service upgraded AU’s credit rating to A1 from A2 and noted that “the upgrade reflects the ongoing
positive momentum in the university’s market strength, flexible reserve growth, and financial stewardship.” Since
then, our financial position has grown only stronger, as shown on the following pages. Total assets now stand at $1.55
billion, and net assets reached the $1 billion mark for the first time in AU’s history.
The past year also saw further progress on a number of our capital projects. The newly renovated McKinley Building
opened its doors to the School of Communication. A visual reminder of the university’s evolution, the building
retained its iconic rotunda and marble façade, while also adding modern glass to its edifice and housing state-of-theart
facilities. Significant progress was made in the construction of the new Washington College of Law at Tenley
Campus, as we anticipate its completion in 2015. Work also has begun on the new East Campus, which will feature
three residence halls housing nearly 600 students, together with the Don Myers Technology and Innovation Building
housing modern learning spaces for the College of Arts and Sciences and its collaborative game design program with
the School of Communication.
The university achieved a significant milestone this year in our pursuit to be carbon neutral by 2020, as we partnered
with George Washington University and its hospital to purchase half of our electricity from renewable power. This
collaboration is unique in higher education and allows us to ensure future price stability of electric power over the
next 20 years. It is the second-largest, non-utility solar photovoltaic power acquisition in the United States, with
electricity drawn from the largest solar farm facility east of the Mississippi River. On the strength of this purchase and
our ongoing sustainability efforts, we once again attained the highest possible score on the Princeton Review’s annual
“Green Ratings” and placed second in the Sierra Club’s annual ranking of America’s greenest colleges, a jump of seven
places from last year.
As our “American evolution” continues, I am certain that the university community will continue to explore new
possibilities, embrace every opportunity, and achieve even greater success in the years to come.
Sincerely,
Douglas Kudravetz
45

Independent Auditor’s report
To Board of Trustees of American University:
We have audited the accompanying consolidated financial statements of American University (the University), which
comprise the consolidated balance sheets as of April 30, 2014, and April 30, 2013, and the related consolidated statements of
activities and cash flows for the years then ended.
Management’s Responsibility 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; this includes 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the University’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the University’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of American University at April 30, 2014, and April 30, 2013, 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.
August 29, 2014
46

BALANCE SHEETS APRIL 30, 2014 AND 2013
(In thousands) 2014 2013
Assets
1 Cash and cash equivalents $ 21,605 $ 57,174
2 Accounts and University loans receivable, net 32,133 27,716
3 Contributions receivable, net 11,835 10,849
4 Prepaid expenses and inventory 2,316 1,824
5 Investments 864,858 750,057
6 Deposits with trustees/others 1,377 1,414
7 Deposits for collateralized swaps 13,897 32,724
8 Property, plant, and equipment, net 580,738 519,380
9 Deferred financing costs 2,226 2,340
10 Interest in perpetual trust 17,826 15,922
11 Total assets $1,548,811 $1,419,400
Liabilities and Net Assets
Liabilities:
12 Accounts payable and accrued liabilities $ 52,872 $ 58,994
13 Deferred revenue and deposits 12,386 16,113
14 Notes payable and long-term debt 418,676 383,930
15 Swap agreements 50,436 70,876
16 Assets retirement obligations 4,058 4,747
17 Refundable advances from the U.S. government 8,846 8,688
18 Total liabilities 547,274 543,348
Net assets:
Unrestricted
19 General operations 8,882 8,271
20 Internally designated 189,242 172,498
Capital
21 Designated funds functioning as endowments 428,476 374,040
22 Designated for plant 172,674 134,084
23 Total unrestricted 799,274 688,893
24 Temporarily restricted 103,056 91,903
25 Permanently restricted 99,207 95,256
26 Total net assets 1,001,537 876,052
27 Total liabilities and net assets $1,548,811 $1,419,400
See accompanying notes to the financial statements 47

Statements of Activities Year ended April 30, 2014
(in thousands)
Operating revenues and support
General
operations
Unrestricted net assets
Temporarily
restricted
net assets
Permanently
restricted
net assets
Internally
designated Capital Total Total
1 Tuition and fees $465,245 $ 2,734 $ - $467,979 $ - $ - $ 467,979
2 Less scholarship allowances (93,929) (8,158) - (102,087) - - (102,087)
3 Net tuition and fees 371,316 (5,424) - 365,892 - - 365,892
4 Federal grants and contracts 1,113 16,841 - 17,954 - - 17,954
5 Private grants and contracts 8,832 8,206 - 17,038 - - 17,038
6 Indirect cost recovery 2,047 - - 2,047 - - 2,047
7 Contributions 10,397 6,312 2,581 19,290 5,103 3,028 27,421
8 Endowment income 4,325 4,672 198 9,195 5,327 124 14,646
9 Investment income 4,729 430 17 5,176 176 - 5,352
10 Auxiliary enterprises 72,350 122 - 72,472 - - 72,472
11 Other sources 913 1,568 87 2,568 - - 2,568
12 Net asset release 176 6,189 2,343 8,708 (8,708) - -
13
Total operating
revenues and support 476,198 38,916 5,226 520,340 1,898 3,152 525,390
Operating expenses
14 Instruction 132,109 2,719 16,861 151,689 - - 151,689
15 Research 32,262 17,645 - 49,907 - - 49,907
16 Public service 20,769 135 3,277 24,181 - - 24,181
17 Academic support 51,560 4,555 5,867 61,982 - - 61,982
18 Student services 39,142 321 2,723 42,186 - - 42,186
19 Institutional support 74,336 3,808 11,020 89,164 - - 89,164
20 Auxiliary enterprises 26,396 45 29,483 55,924 - - 55,924
21
Facilities operations
and maintenance 47,386 - (47,386) - - - -
22 Interest expense 13,046 - (13,046) - - - -
23 Total operating expenses 437,006 29,228 8,799 475,033 - - 475,033
24 Total operating activities 39,192 9,688 (3,573) 45,307 1,898 3,152 50,357
25 Transfer among funds (40,932) 7,121 33,811 - - - -
Nonoperating items
26 Investment income - - - - - - -
27 Other revenue and transfers - 5,351 - 5,351 (3,920) (1,709) (278)
28
29
Realized and unrealized
net capital gains 2,351 (5,416) 62,788 59,723 13,175 2,508 75,406
Total nonoperating
activities 2,351 (65) 62,788 65,074 9,255 799 75,128
30 Change in net assets 611 16,744 93,026 110,381 11,153 3,951 125,485
31 Net assets at beginning of year 8,271 172,498 508,124 688,893 91,903 95,256 876,052
32 Net assets at end of year $ 8,882 $189,242 $601,150 $799,274 $ 103,056 $99,207 $1,001,537
48
See accompanying notes to the financial statements

Statements of Activities Year ended April 30, 2013
(in thousands)
Operating revenues and support
general
operations
Unrestricted net assets
internally
designated capital total
temporarily
restricted
net assets
permanently
restricted
net assets
1 Tuition and fees $456,154 $ 1,431 $ - $457,585 $ - $ - $457,585
2 Less scholarship allowances (94,258) (8,068) - (102,326) - - (102,326)
3 Net tuition and fees 361,896 (6,637) - 355,259 - - 355,259
4 Federal grants and contracts 1,116 17,908 - 19,024 - - 19,024
5 Private grants and contracts 8,609 8,617 - 17,226 - - 17,226
6 Indirect cost recovery 2,170 - - 2,170 - - 2,170
7 Contributions 10,236 5,201 2,315 17,752 3,615 2,141 23,508
8 Endowment income 2,778 5,168 187 8,133 4,869 117 13,119
9 Investment income 5,724 376 58 6,158 176 - 6,334
10 Auxiliary enterprises 67,900 132 - 68,032 - - 68,032
11 Other sources 971 1,507 2 2,480 - - 2,480
12 Net asset release 214 6,181 2,216 8,611 (8,611) - -
13
Operating expenses
Total operating
revenues and support 461,614 38,453 4,778 504,845 49 2,258 507,152
14 Instruction 126,725 3,972 17,114 147,811 - - 147,811
15 Research 30,740 18,555 - 49,295 - - 49,295
16 Public service 19,767 343 693 20,803 - - 20,803
17 Academic support 49,888 4,698 5,616 60,202 - - 60,202
18 Student services 37,460 344 2,636 40,440 - - 40,440
19 Institutional support 72,572 662 10,050 83,284 - - 83,284
20 Auxiliary enterprises 35,164 19 26,967 62,150 - - 62,150
Facilities operations
21
and maintenance 40,351 - (40,351) - - - -
22 Interest expense 11,755 - (11,755) - - - -
23 Total operating expenses 424,422 28,593 10,970 463,985 - - 463,985
24 Total operating activities 37,192 9,860 (6,192) 40,860 49 2,258 43,167
25 Transfer among funds (37,416) (5,955) 43,371 - - - -
Nonoperating items
26 Investment income - - - - - - -
27 Other revenue and transfers - (116) - (116) (200) 446 130
28
Realized and unrealized
net capital gains 692 (2,337) 35,393 33,748 11,930 1,555 47,233
29
Total nonoperating
activities 692 (2,453) 35,393 33,632 11,730 2,001 47,363
30 Change in net assets 468 1,452 72,572 74,492 11,779 4,259 90,530
31 Net assets at beginning of year 7,803 171,046 435,552 614,401 80,124 90,997 785,522
32 Net assets at end of year $ 8,271 $172,498 $508,124 $688,893 $91,903 $95,256 $876,052
total
See accompanying notes to the financial statements 49

Statements of Cash Flows Years ended April 30, 2014 and 2013
(In thousands) 2014 2013
Cash flows from operating activities
1 Increase in net assets $125,485 $90,530
Adjustments to reconcile increase in net assets to net cash provided by operating activities:
2 Contributed art and property (7,548) (2,011)
3 Net realized and unrealized capital gains (66,731) (60,758)
4 Loss on disposal of fixed assets 70 2,361
5 Gain on asset retirement obligation remediation (593) -
6 Change in fair value of interest rate swaps (20,440) 2,959
7 Depreciation, amortization, and accretion 30,229 26,134
Changes in assets and liabilities
8 (Increase) decrease in accounts and university loans receivable, net (3,928) 171
9 Increase in contributions receivable, net (986) (719)
10 (Increase) decrease in prepaid expenses (492) 761
11 (Decrease) increase in accounts payable and accrued liabilities (9,593) 5,871
12 Decrease in deferred revenue, deposits, and other refundable advance (3,569) (2,307)
13 Contributions collected and revenues restricted for long-term investment (5,551) (5,268)
14 Net cash provided by operating activities 36,353 57,724
Cash flows from investing activities
15 Purchases of investments (369,894) (176,020)
16 Proceeds from sales and maturities of investments 319,920 175,530
17 Purchases of property, plant, and equipment (78,850) (77,578)
18 Capitalized interest (1,770) (1,879)
19 Decrease in deposits with trustees/other, net 18,864 (2,824)
20 Net cash used in investing activities (111,730) (82,771)
Cash flows from financing activities
21 Student loans issued (1,731) (2,032)
22 Student loans repaid 1,242 1,387
23 Issuance of debt 35,000 20,000
24 Repayment of mortgage note payable (254) (145)
Proceeds from contributions restricted for
25 Investment in plant 2,341 2,028
26 Investment in endowment 3,210 3,240
27 Net cash provided by financing activities 39,808 24,478
28 Net (decrease) increase in cash and cash equivalents (35,569) (569)
29 Cash and cash equivalents at beginning of year 57,174 57,743
30 Cash and cash equivalents at end of year $ 21,605 $57,174
Supplemental disclosure of cash flow information
31 Cash paid during year for interest $ 14,317 $14,889
32 Contributed art and property 7,548 2,011
33 Mortgage payable - 23,200
33 Accrued payment for property, plant, and equipment 3,471 6,126
50
See accompanying notes to the financial statements

Notes to Financial Statements April 30, 2014 and 2013
1. American University
American University (the University) is an independent, coeducational university located on an 85-acre campus in northwest
Washington, DC. It was chartered by an Act of Congress in 1893 (the Act). The Act empowered the establishment and
maintenance of a university for the promotion of education under the auspices of the Methodist Church. While still maintaining
its Methodist connection, the University is nonsectarian in all of its policies.
American University offers a wide range of graduate and undergraduate degree programs, as well as nondegree study. There
are approximately 825 full-time faculty members in seven academic divisions and approximately 12,000 students, of which 6,800
are undergraduate students and 5,200 are graduate students. The University attracts students from all 50 states, the District of
Columbia, Puerto Rico, and nearly 130 foreign countries.
2. Summary of Significant Accounting Policies
Basis of Presentation
The financial statements of the University have been reported on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States of America.
Classification of Net Assets
Net assets, revenues, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly,
net assets of the University and changes therein are classified and reported as follows:
Unrestricted—Net assets not subject to donor-imposed stipulations.
Temporarily Restricted—Net assets subject to donor-imposed stipulations that either expire by passage
of time or can be fulfilled by actions of the University pursuant to those stipulations.
Permanently Restricted—Net assets subject to donor-imposed stipulations that they be maintained
permanently by the University.
Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed
restrictions. Contributions are reported as increases in the appropriate category of net assets. Expenses are reported as decreases
in unrestricted net assets. Gains and losses on investments are reported as increases or decreases in unrestricted net assets unless
their use is restricted by explicit donor stipulations or by law. Expirations of temporary restrictions recognized 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 temporarily restricted net assets to unrestricted net assets. Temporary restrictions on gifts to acquire long-lived assets are
considered met in the period in which the assets are acquired or placed in service.
Contributions, including unconditional promises to give, are recognized as revenues 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 to be received after one year are discounted at a
rate commensurate with the risk involved. Amortization of the discount is recorded as contribution revenue. Allowance is made
for uncollectible contributions based upon management’s judgment and analysis of the creditworthiness of the donors, past
collection experience, and other relevant factors.
The University follows a practice of classifying its unrestricted net asset class of revenues and expenses as general operations,
internally designated, or capital. Items classified as general operations include those revenues and expenses included in the
University’s annual operating budget. Items classified as capital include accounts and transactions related to endowment funds
and plant facilities and allocation of facilities operations and maintenance, depreciation, and interest expense. All other accounts
and transactions are classified as internally designated.
Transfers consist primarily of funding designations for specific purposes and for future plant acquisitions and improvements.
Non-operating activities represent transactions relating to the University’s long-term investments and plant activities, including
contributions to be invested by the University to generate a return that will support future operations, contributions to be
received in the future or to be used for facilities and equipment, and investment gains or losses.
51

Notes to Financial Statements April 30, 2014 and 2013
Principles of Consolidation
Our consolidated financial statements include our accounts and that of our wholly owned and controlled subsidiary, American
University at Connecticut Avenue LLC, after elimination of intercompany accounts and transactions.
Cash and Cash Equivalents
All highly liquid cash investments with maturities at date of purchase of three months or less are considered to be cash
equivalents. Cash equivalents consist primarily of money market funds.
Receivables
Receivables consist of tuition and fee charges to students and auxiliary enterprises’ sales and services, loans receivable primarily
related to donor-structured loans and federal student financial aid programs, and amounts due from the federal government, state
and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to grants
and contracts. Receivables are recorded net of estimated uncollectible amounts. The University reviews the individual receivables
as well as the history of collectability to determine the collectible amount as of the balance sheet date. Additionally, loans receivable
are evaluated annually by looking at both unsecured and secured loans.
Deposits for Collateralized Swaps
Deposits consist of the cash held as collateral for the University’s interest rate swaps.
Investments
Equity securities with readily determinable fair values and all debt securities are recorded at fair value in the balance sheet.
See note 7 for an explanation as to methodology for determining fair value. Endowment income included in operating revenues
consists of annual amounts allocated for spending of endowment funds in accordance with the University’s spending policy.
All realized and unrealized gains and losses from investments of endowment funds are reported as non-operating revenues.
Investment income included in operating revenues consists primarily of interest and dividends from investments of working
capital funds and unexpended plant funds.
The University has interests in alternative investments consisting of limited partnerships. Alternative investments are less liquid
than the University’s other investments. Furthermore, the investments in these limited partnerships, as well as certain mutual
funds classified as equity securities, may include derivatives and certain private investments which do not trade on public markets
and therefore may be subject to greater liquidity risk.
In May 2011, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2011-04, Fair Value Measurement
(“ASU 2011-04”). ASU 2011-04 requires new disclosures for valuation techniques and unobservable inputs related to Level 3
fair value measurements, excluding investments that measure fair value using an NAV. The new guidance also requires the
discloure of transfers between Level 1 and Level 2 investments. The new disclosures and clarifications of existing disclosures were
effective for the year ended April 30, 2013. The adoption of this guidance is included in the University’s fair value disclosures.
Investment income is reported net of management fees and rental real estate property expenses.
Property, Plant, and Equipment, Net
Property, plant, and equipment are stated at cost on the date of acquisition or at estimated fair value if acquired by gift including
interest capitalized on related borrowings during the period of construction, less accumulated depreciation. Certain costs associated
with the financing of plant assets are deferred and amortized over the terms of the financing. Depreciation of the University’s
plant assets is computed using the straight-line method over the asset’s estimated useful life, generally over 50 years for buildings,
20 years for land improvements, 5 years for equipment, 10 years for library collections, and 50 years for art collections. The
University’s capitalization policy is to capitalize all fixed assets and collection items that have a cost of $5,000 or more per
unit and a useful life of two years or more.
Refundable Advances from the U.S. Government
Funds provided by the United States Government under the Federal Perkins Loan Program are loaned to qualified students and
may be reloaned after collections. Such funds are ultimately refundable to the government. Approximately 44% and 46% of
net tuition and fees revenue for the years ended April 30, 2014 and 2013, respectively, was funded by federal student financial aid
programs (including loan, grant, and work-study programs).
52

Notes to Financial Statements April 30, 2013 and 2012
Asset Retirement Obligations
The University records asset retirement obligations in accordance with the accounting standard for the Accounting for
Conditional Asset Retirement Obligations. This standard requires the fair value of the liability for the asset retirement
obligations (ARO) be recognized in the period in which it is incurred and the settlement date is estimable, even if the exact
timing or method of settlement is unknown. The ARO is capitalized as part of the carrying amount of the long-lived asset
retroactively to the time at which legal or contractual regulations created the obligation. The University’s ARO is primarily
associated with the cost of removal and disposal of asbestos, lead paint, and asset decommissioning. For the years ended
April 30, 2014 and 2013, the accretion expenses were $193,000 and $226,000, respectively. Obligations of $882,000 were settled
during the fiscal year ended April 30, 2014.
Income Taxes
The University has been recognized by the Internal Revenue Service as exempt from federal income tax under Section 501(c)(3)
of the U.S. Internal Revenue Code, except for taxes on income from activities unrelated to its exempt purpose. Such activities
resulted in no net taxable income in fiscal years 2014 and 2013.
Functional Expenses
The University has developed and implemented a system of allocating expenses related to more than one function. These expenses
are depreciation, interest, and operations and maintenance of plant. Depreciation is allocated by individual fixed assets to the
function utilizing that asset. Interest is allocated based on the use of borrowed money in the individual functional category.
The operations and maintenance of plant is divided into expenses used for the total institution not charged back to the operating
units, and those expenses charged to some units but not all units. The allocation was determined through a study of departmental
uses of the operations and maintenance budget within each category.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect (1) the reported amounts of assets and liabilities; (2) disclosure of contingent
assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the
reporting period. Significant items subject to such estimates and assumptions are the value of alternative investments, the asset
retirement obligations, the postretirement benefit plan, and swap agreements. Actual results could differ materially, in the near
term, from the amounts reported.
3. Consolidation of Wholly Owned Subsidiary
In May 2012, the University became the sole member of American University at Connecticut Avenue LLC (“the LLC”).
The LLC purchased an office building to house the University’s public radio station, WAMU 88.5 FM, and other administrative
offices. The University has consolidated the mortgage liability along with the rental revenue of the LLC in our consolidated
financial statements for the current fiscal year.
4. Accounts and University Loans Receivable, Net
Accounts and loans receivable, net, at April 30, 2014 and 2013, are as follows (in thousands):
2014 2013
Accounts receivable
1 Student $10,209 $ 9,812
2 Grants, contracts, and other 9,837 7,024
3 Accrued interest 506 468
4 Student loans 13,732 12,932
5 34,284 30,236
6 Less allowance for uncollectible accounts and loans (2,151) (2,520)
7 $32,133 $27,716
53

Notes to Financial Statements April 30, 2014 and 2013
At April 30, 2014 and 2013, the University had an outstanding student loans receivable balance in the amount of $13.7 million
and $12.9 million, respectively. Management does not believe it has significant exposure to credit risk related to the federal
student financial aid programs as these accounts receivable amounts are back by the U.S. Government. Additionally, management
has considered the credit and market risk associated with all other outstanding balances and believes the recorded cost of these
loans approximates fair market value at April 30, 2014 and 2013.
5. Contributions Receivable, Net
As of April 30, 2014 and 2013, unconditional promises to give were as follows (in thousands):
2014 2013
Amounts due in:
1 Less than one year $10,883 $10,139
2 One year to five years 6,280 5,537
3 Over five years 745 855
4 17,908 16,531
5 Less unamortized discount (928) (1,026)
6 Less allowance for doubtful accounts (5,145) (4,656)
7 $11,835 $10,849
Contributions receivable over more than one year are discounted at rates ranging from 3.0% to 6.5%. New contributions received
during fiscal years 2014 and 2013 were assigned a discount rate which is commensurate with the market and credit risk involved.
As of April 30, 2014 and 2013, the University had also received bequest intentions and conditional promises to give of
$24.5 million and $26.4 million, respectively. These intentions to give are not recognized as assets. If the bequests are received,
they will generally be restricted for specific purposes stipulated by the donors, primarily endowments for faculty support,
scholarships, or general operating support of a particular department of the University. Conditional promises to give are
recognized as contributions when the donor-imposed conditions are substantially met.
6. Property, Plant, and Equipment, Net
Property, plant, and equipment and related accumulated depreciation and amortization at April 30, 2014 and 2013,
are as follows (in thousands):
2014 2013
8 Land and improvements $ 56,779 $ 56,494
9 Buildings 687,751 581,484
10 Equipment 118,821 103,945
11 Construction in progress 28,454 65,811
12 Library and art collections 106,816 99,614
13 998,621 907,348
14 Less accumulated depreciation and amortization (417,883) (387,968)
15 $580,738 $519,380
Construction in progress at April 30, 2014 and 2013, relates to building improvements and renovations.
Capitalized interest for the years ended April 30, 2014 and 2013, was $1.8 million and $1.9 million, respectively.
For the years ended April 30, 2014 and 2013, depreciation expense was approximately $29.9 million and $26.1 million, respectively.
54

Notes to Financial Statements April 30, 2014 and 2013
7. Fair Value Measurements
The University determines fair value in accordance with fair value measurement accounting standards. These standards establish
a framework for measuring fair value, a fair value hierarchy based on the observability of inputs used to measure fair value, and
disclosure requirements for fair value measurements. Financial assets and liabilities are classified and disclosed in one of the
following three categories based on the lowest level input that is significant to the fair value measurement in its entirety:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Inputs other than Level 1 that are observable either directly or indirectly, such as quoted prices for similar assets or
liabilities, quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market
data for substantially the same term of the assets or liabilities.
Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets
or liabilities.
Assets and Liabilities Measured at Fair Value
The following table displays the carrying value and estimated fair value of the University’s financial instruments as of
April 30, 2014 (in thousands):
Assets
Investments
Quoted Prices
in Active
Markets for
Identical
ASSETS
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total Fair
Value as of
April 30, 2014
1 Cash and cash equivalents $ 9,100 $ - $ - $ 9,100
2 Equity—corporate stocks 95,809 - - 95,809
3 Equity—domestic funds - 171,599 - 171,599
4 Equity—international funds - 190,648 - 190,648
5 Equity—hedge funds - 78,688 18,434 97,122
6 Equity—real asset funds - 27,778 - 27,778
7 Equity—private equity funds - - 18,472 18,472
8 Fixed income—corporate bonds - 26,028 - 26,028
9 Fixed income—government agency bonds - 10,606 - 10,606
10 Fixed income—international bonds - 23 - 23
11 Fixed income—U.S. Treasury securities 12,023 - - 12,023
12 Fixed income—domestic bond funds - 205,650 - 205,650
13 Deposits with trustees 1,377 - - 1,377
14 Interest in perpetual trust - - 17,826 17,826
15 Total assets at fair value $118,309 $711,020 $ 54,732 $884,061
Liabilities
16 Swap agreements $ - $ 50,436 $ - $ 50,436
17 $ - $ 50,436 $ - $ 50,436
55

Notes to Financial Statements April 30, 2014 and 2013
The following table displays the carrying value and estimated fair value of the University’s financial instruments as of
April 30, 2013 (in thousands):
Assets
Investments
Quoted Prices
in Active
Markets for
Identical
ASSETS
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value as of
April 30, 2013
1 Cash and cash equivalents $ 8,512 $ - $ - $ 8,512
2 Equity—corporate stocks 80,708 - - 80,708
3 Equity—domestic funds - 125,978 - 125,978
4 Equity—international funds - 150,418 - 150,418
5 Equity—hedge funds - 83,559 2,159 85,718
6 Equity—real asset funds - 20,320 - 20,320
7 Equity—private equity funds - - 12,333 12,333
8 Fixed income—corporate bonds - 14,301 - 14,301
9 Fixed income—government agency bonds - 9,909 - 9,909
10 Fixed income—international bonds - 2,344 - 2,344
11 Fixed income—U.S. Treasury securities 6,917 - - 6,917
12 Fixed income—domestic bond funds - 232,599 - 232,599
13 Deposits with trustees 1,414 - - 1,414
14 Interest in perpetual trust - - 15,922 15,922
15 Total assets at fair value $ 97,551 $639,428 $ 30,414 $767,393
Liabilities
16 Swap agreements $ - $ 70,876 $ - $ 70,876
17 $ - $ 70,876 $ - $ 70,876
The University determines a valuation estimate based on techniques and processes which have been reviewed for propriety and
consistency with consideration given to asset type and investment strategy. In addition, the funds and fund custodians may also
use established procedures for determining the fair value of securities which reflect their own assumptions. Management makes
best estimates based on information available. The following estimates and assumptions were used to determine the fair value of
the financial instruments listed above:
• Cash equivalents—Cash equivalents primarily consist of deposits in money market funds and short-term investments.
These are priced using quoted prices in active markets and are classified as Level 1.
• Equity investments—Equity investments consist of, but are not limited to, separate accounts, common trust funds, and
hedge funds. These assets consist of both publicly traded and privately held funds.
o
o
Publicly traded securities—These investments consist of domestic and foreign equity holdings. Securities traded on
active exchanges are priced using unadjusted market quotes for identical assets and are classified as Level 1. Securities
that are traded infrequently or that have comparable traded assets are priced using available quotes and other market data
that are observable and are classified as Level 2.
Privately held funds—These investments consist of domestic, international, hedge, real asset, and private equity funds which
are privately held. The valuations of the funds are calculated by the investment managers based on valuation techniques
that take into account the market value of the underlying assets to arrive at a net asset value or interest in the fund shares.
The funds are commingled funds and limited partnerships and shares may not be readily redeemable. If an active market
56

Notes to Financial Statements April 30, 2014 and 2013
exists for the fund and shares are redeemable at net asset value, these investments are classified as Level 2. If no active
market exists for these investments and/or there are significant redemption restrictions, they are classified as Level 3. In the
absence of readily determinable fair value, fair value of each investment is determined based on a review of the audited
financial statements of the underlying funds, when available, and other information from independent third parties,
including information provided by the fund managers. Investments in such funds do carry certain risks, including lack of
regulatory oversight, interest rate risk, and market risk.
• Fixed income investments—Fixed income securities include, but are not limited to, U.S. Treasury issues, U.S. Government
Agency issues, corporate debt, and domestic and international bond funds. Fixed income securities assets are valued using
quoted prices in active markets for similar securities and are classified as Level 2. If an active market exists for fixed income
funds and shares are redeemable at net asset value, these investments are classified as Level 2. If no active market exists
for these investments and/or there are significant redemption restrictions, they are classified as Level 3.
• Deposits with trustees—Deposits with trustees consist of debt service funds and the unexpended proceeds of certain bonds
payable. These funds are invested in short-term, highly liquid securities and will be used for construction of, or payment
of debt service on, certain facilities.
• Interest in perpetual trust—Beneficial and perpetual trusts held by third parties are valued at the present value of the future
distributions expected to be received over the term of the agreement.
• Swap agreements—Interest rate swaps are valued using both observable and unobservable inputs, such as quotations
received from the counterparty, dealers, or brokers, whenever available and considered reliable. In instances where models
are used, the value of the interest rate swap depends upon the contractual terms of, and specific risks inherent in, the
instrument as well as the availability and reliability of observable inputs. Such inputs include market prices for reference
securities, yield curves, credit curves, measures of volatility, prepayment rates, assumptions for nonperformance risk, and
correlations of such inputs. Certain of the interest rate swap arrangements have inputs which can generally be corroborated
by market data and are therefore classified within Level 2.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective
of future fair values. Furthermore, while the University believes its valuation methods are appropriate and consistent with other
market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different estimate of fair value at the reporting date.
Changes in Level 3 Assets
The following table is a roll-forward of the statement of financial position amounts for financial instruments classified by the
University within Level 3 of the fair value hierarchy defined above for the years ended April 30, 2014 and 2013 (in thousands):
Investments
Equity—Hedge
Funds
Investments
Equity—Private
Equity Funds
Interest in
Perpetual
Trust
1 Beginning balance at May 1, 2013 $ 2,159 $ 12,333 $ 15,922 $ 30,414
2
Total gains or losses (realized/unrealized)
included in earnings 1,382 1,548 1,904 4,834
Purchases, issuances, sales, and settlements
3 Purchases 10,000 6,432 - 16,432
4 Issuances - - - -
5 Sales - (1,841) - (1,841)
6 Settlements - - - -
7 Transfers into Level 3 4,893 - - 4,893
8 Transfers out of Level 3 - - - -
9 Ending balance at April 30, 2014 $ 18,434 $ 18,472 $ 17,826 $ 54,732
Total
10
Total gains or losses for the period included in
earnings attributable to the change in unrealized
gains or losses relating to assets still held at
period end $ 1,382 $ 1,548 $ 1,904 $ 4,834
57

Notes to Financial Statements April 30, 2014 and 2013
Investments
Equity—Hedge
Funds
Investments
Equity—Private
Equity Funds
Interest in
Perpetual
Trust
1 Beginning balance at May 1, 2012 $ 6,587 $ 7,641 $ 14,597 $ 28,825
2
Total gains or losses (realized/unrealized)
included in earnings 465 1,116 1,325 2,906
Purchases, issuances, sales, and settlements
3 Purchases - 4,851 - 4,851
4 Issuances - - - -
5 Sales - (1,275) - (1,275)
6 Settlements - - - -
7 Transfers into Level 3 - - - -
8 Transfers out of Level 3 (4,893) - - (4,893)
9 Ending balance at April 30, 2013 $ 2,159 $ 12,333 $ 15,922 $ 30,414
Total
10
Total gains or losses for the period included in
earnings attributable to the change in unrealized
gains or losses relating to assets still held at
period end $ 465 $ 1,116 $ 1,325 $ 2,906
Transfers into and out of Level 3 are typically the result of a change in the availability and the ability to observe market data
which is considered a significant valuation input required by various models. Generally, as markets evolve, the data required to
support valuations becomes more widely available and observable.
There were no significant transfers between Levels 1 and 2 for the year ended April 30, 2014.
Investments that Calculate Net Asset ValuE
Investments in certain entities that calculate net asset values at April 30, 2014 and 2013, are as follows (in thousands):
Fair Value
Unfunded
Commitments
April 30, 2014
Redemption
Frequency
Redemption
Notice Period
11 Domestic equity funds $171,599 $ - daily same day
12 International equity funds 190,648 - daily, biweekly same day—5 days
13 Domestic bond funds 205,650 - daily same day
14 Real asset funds 27,778 - daily, monthly 1–10 days
15 Hedge funds 97,122 - monthly, annually 30–90 days
16 Private equity funds 18,472 32,033 n/a n/a
17 Total $711,269 $ 32,033
Fair Value
Unfunded
Commitments
April 30, 2013
Redemption
Frequency
Redemption
Notice Period
18 Domestic equity funds $125,978 $ - daily same day
19 International equity funds 150,418 - daily, biweekly same day—5 days
20 Domestic bond funds 232,599 - daily same day
21 Real asset funds 20,320 - daily, monthly 1–10 days
22 Hedge funds 85,718 - monthly, annually 30–90 days
23 Private equity funds 12,333 28,002 n/a n/a
24 Total $627,366 $ 28,002
58

Notes to Financial Statements April 30, 2014 and 2013
Investments in debt securities and equity securities consist primarily of investments in funds managed by external
investment managers.
For the years ended April 30, 2014 and 2013, the University’s investment management fees were approximately $1.3 million and
$1.5 million, respectively.
Investment Income
Total net investment income for the years ended April 30, 2014 and 2013, consists of the following (in thousands):
Unrestricted
Temporarily
restricted
2014
Permanently
restricted
1 Endowment income $ 9,195 $ 5,327 $ 124 $ 14,646
2 Investment income 5,176 176 - 5,352
3 Realized and unrealized net capital losses 59,723 13,175 2,508 75,406
4 Total $ 74,094 $ 18,678 $ 2,632 $ 95,404
Total
Operating
5 Investment income $5,176 $ 176 $ - $ 5,352
6 Endowment income 593 2,168 124 2,885
7 Allocated from non-operating 8,602 3,159 - 11,761
Non-operating
8 Realized and unrealized net capital losses 68,325 16,334 2,508 87,167
9 Allocation to operations (8,602) (3,159) - (11,761)
10 Total $ 74,094 $ 18,678 $ 2,632 $ 95,404
Unrestricted
Temporarily
restricted
2013
Permanently
restricted
11 Endowment income $ 8,133 $ 4,869 $ 117 $ 13,119
12 Investment income 6,158 176 - 6,334
13 Realized and unrealized net capital gains 33,748 11,930 1,555 47,233
14 Total $ 48,039 $ 16,975 $ 1,672 $ 66,686
Total
Operating
15 Investment income $ 6,158 $ 176 $ - $ 6,334
16 Endowment income 1,367 2,291 117 3,775
17 Allocated from non-operating 6,766 2,578 - 9,344
Non-operating
18 Realized and unrealized net capital gains 40,514 14,508 1,555 56,577
19 Allocation to operations (6,766) (2,578) - (9,344)
20 Total $ 48,039 $ 16,975 $ 1,672 $ 66,686
59

Notes to Financial Statements April 30, 2014 and 2013
8. Notes Payable and Long-term Debt
The University classifies its notes payable and long-term debt into two categories: core debt and special purpose debt. Core debt
represents debt that will be repaid from the general operations of the University and includes borrowings for educational and
auxiliary purposes. Special purpose debt represents debt that is repaid from sources outside of general operations and includes
borrowings for buildings, which house some administrative offices, along with rental space
Notes payable and long-term debt at April 30, 2014 and 2013, consist of the following (in thousands):
2014 2013
Core debt
1 District of Columbia University Revenue Bonds, American University
Issue Series 1999 maturing in 2028 $ 21,000 $ 21,000
2 District of Columbia University Revenue Bonds, American University
Issue Series 2003 maturing 2033 37,000 37,000
3 District of Columbia University Revenue Bonds, American University
Issue Series 2006 maturing 2036 99,975 99,975
4 District of Columbia University Revenue Bonds, American University
Issue Series 2008 maturing 2038 60,900 60,900
5 Term loan maturing in 2021 75,000 75,000
6 Taxable commercial paper note program 65,000 30,000
7 Total core debt 358,875 323,875
Special purpose debt
8 Note payable due in full in 2021 22,000 22,000
9 Note payable due in full in 2020 15,000 15,000
10 Mortgage payable due in full in 2018 22,801 23,055
11 Total special purpose debt 59,801 60,055
12 Total indebtedness $418,676 $383,930
The principal balance of notes payable and long-term debt outstanding as of April 30, 2014, is due as follows (in thousands):
Year ending April 30:
13 2015 $ 65,271
14 2016 285
15 2017 308
16 2018 21,937
17 2019 -
18 Thereafter 330,875
19 $418,676
Due to the nature of certain variable rate bond agreements, the University may receive notice of an optional tender on its variable
rate bonds. In that event, the University would have an obligation to purchase the tendered bonds if they were unable to be
remarketed. The University has entered into letter of credit agreements with various financial institutions to support the
$218.9 million of variable rate demand obligations all of which expire in fiscal year 2016. Under these agreements, the financial
institutions have agreed to purchase the bonds if the bonds are unable to be remarketed. Should that occur, payment would be
accelerated and ultimately differ from the dates stated above. In accordance with the terms of the agreements, $58.0 million
would convert to a term loan with principal and interest payable over three years and $161.0 million would be payable in fiscal
year 2015.
60

Notes to Financial Statements April 30, 2014 and 2013
The estimated fair value of the University’s notes payable and long-term debt at April 30, 2014 and 2013, was $422.1 million
and $383.9 million, respectively. Taxable commercial paper and the District of Columbia revenue bonds were valued using fair
market prices. The term loan and special purpose debt were valued using the discounted cash flow method.
District of Columbia Bonds Payable
In October 2008, the University refunded and reissued the Series 1985 and Series 1985A bonds as Series 2008 variable rate
demand bonds with interest payable weekly. These bonds are general unsecured obligations of the University. The interest rate at
April 30, 2014, was 0.09%.
The Series 1999 bonds are general unsecured obligations of the University and bear interest at a variable rate, payable weekly.
The proceeds from the bonds were used to repay a mortgage note prior to its scheduled maturity. The interest rate at
April 30, 2014, was 0.09%.
The Series 2003 bonds are general unsecured obligations of the University and bear interest at a variable rate, payable weekly.
The proceeds were used to fund construction and renovation of Katzen Arts Center and Greenberg Theatre. The interest rate at
April 30, 2014, was 0.12%.
The Series 2006 bonds are general unsecured obligations of the University and bear interest at a variable rate, payable weekly.
The proceeds were used to advance refund the Series 1996 bond issue, thus reducing the University’s overall interest costs, and
to fund construction and renovation projects, including Nebraska Hall and the School of International Service building. The interest
rate at April 30, 2014, was 0.14%.
On June 7, 2012, the University replaced the letters of credit for the 2006 and 2008 bonds that were held as of April 30, 2012,
with new letters of credit from JP Morgan Chase. The letter of credit for the 2003 bonds and the standby bond purchase
agreement supporting the 1999 bonds were replaced with new letters of credit from Wells Fargo on June 28, 2012, and
August 15, 2012, respectively.
Term Loan
In 2011, the University entered into a $75 million term loan with JPMorgan Chase Bank, N.A., to fund its facilities development
projects. The term loan is due in full in June 2021 and has a fixed 4.19% interest rate, payable monthly.
Taxable Commercial Paper Note Program
On December 15, 2011, the University established a $125.0 million taxable commercial paper note program which will be used
to fund long-term projects for a temporary period until long-term financing is implemented. The notes can be issued for a
maximum of 270 days and carry a floating taxable interest rate.
In 2014, the University issued $35.0 million in additional commercial paper notes. The average interest rate on outstanding
commercial paper at April 30, 2014, is 0.15%.
Notes Payable
In 2001, the University issued a $22.0 million note for the purchase of a building. The note is payable in full in September 2021
and bears an interest rate of LIBOR plus 0.45%, payable monthly. The interest rate at April 30, 2014, was 0.60175%.
In 2003, the University issued a $15.0 million note payable to replace a 1998 note incurred for the purchase of a building.
The note is payable in full in April 2020 and bears an interest rate of LIBOR plus 0.45%, payable monthly. The interest rate at
April 30, 2014, was 0.60175%.
Mortgage Payable
In 2012, the LLC purchased an office building to house its public radio station, WAMU 88.5 FM, and other administrative
offices. The University, as the sole owner of the LLC, assumed the existing mortgage on the property of $23.2 million, which is
payable in full in August 2017. The interest rate on April 30, 2014, was 6.37%.
61

Notes to Financial Statements April 30, 2014 and 2013
9. Interest Rate Swaps
The University has entered into interest rate swap agreements to reduce the impact of changes in interest rates on its floating rate
long-term debt. The interest rate swap agreements were not entered into for trading or speculative purposes. At April 30, 2014,
the University had outstanding interest rate swap agreements with Bank of America and Morgan Stanley Capital Services.
The interest rate swap agreement with Bank of America has a total notional principal amount of approximately $61 million.
This agreement effectively changes the interest rate to a 4.31% fixed rate for the Series 2008 bonds. Four interest rate swap
agreements are in place with Morgan Stanley with a total notional principal amount of approximately $134 million. These
agreements effectively change the University’s interest rate to a 4.12% fixed rate for the Series 1999 bonds, fixed rates of 5.26%
and 4.37% on portions of the Series 2006 bonds, and a fixed rate of 4.46% on a portion of the Series 2003 bonds. The interest rate
swap agreements mature at the time the related notes mature.
The interest rate swap agreements contain provisions that require the University’s debt to maintain an investment grade credit
rating from each of the major credit rating agencies. If the University’s debt were to fall below investment grade, it would be in
violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand
immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The University is
currently in compliance with these provisions.
The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position on
April 30, 2014, is $50.0 million, for which the University has posted collateral of $14.0 million in the normal course of business.
If the credit-risk-related contingent features underlying these agreements were triggered on April 30, 2014, the University
would be required to post an additional $36.0 million of collateral to its counterparties. The University is also exposed to
credit loss in the event of nonperformance by the other parties to the interest rate swap agreements. However, the University
does not anticipate nonperformance by the counter parties.
Derivatives at April 30, 2014 and 2013, are as follows (in thousands):
Derivatives not designated as hedging instruments:
Liability Derivatives
Balance Sheet
Location
2014 2013
Fair Value
Balance Sheet
Location
Fair Value
1 Interest rate contracts Swap agreements $50,436 Swap agreements $70,876
Location of Gain (Loss) Recognized in Statement of Activities
Amount of Gain (Loss) Recognized in
Statement of Activities
Derivatives not designated as hedging instruments:
2014 2013
2 Interest rate contracts Realized and unrealized net capital gains $20,440 $ (2,959)
10. Endowments
The University’s endowment consists of approximately 450 individual funds established for scholarships and related academic
activities. Its endowment includes both donor-restricted endowment funds and funds designated by the Board of Trustees
to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment
funds, including funds designated by the Board of Trustees to function as endowments, are classified and reported based on the
existence or absence of donor-imposed restrictions.
Permanently Restricted Net Assets—Interpretation of Relevant Law
The Board of Trustees has interpreted the District of Columbia enacted version of Uniform Prudent Management of Institutional
Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted
endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the University classifies
as permanently restricted net assets (a) the original value of gifts 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
62

Notes to Financial Statements April 30, 2014 and 2013
the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of
the donor-restricted endowment fund not classified in permanently restricted net assets is classified as temporarily restricted
net assets until purpose and timing restrictions are met and amounts are appropriated for expenditure by the Board of Trustees of
the University in a manner consistent with the standard of prudence prescribed by UPMIFA.
In accordance with UPMIFA, the University considers the following factors in making a determination to appropriate or
accumulate donor-restricted endowment funds:
(1) The duration and preservation of the fund
(2) The purposes of the University and the donor-restricted endowment fund
(3) General economic conditions
(4) The possible effect of inflation and deflation
(5) The expected total return from income and the appreciation of investments
(6) Other resources of the University
(7) The investment policies of the University
The endowment net assets composition by type of fund at April 30, 2014, is as follows (in thousands):
Unrestricted
Temporarily
Restricted
Permanently
Restricted
1 Donor-restricted endowment funds $ - $ 85,446 $ 90,078 $175,524
2 Board-designated endowment funds 370,606 - - 370,606
3 Total endowment funds $370,606 $ 85,446 $ 90,078 $546,130
Total
The changes in endowment net assets for the year ended April 30, 2014, are as follows (in thousands):
Unrestricted
Temporarily
Restricted
Permanently
Restricted
4 Endowment net assets, May 1, 2013 $327,562 $ 72,271 $ 85,099 $484,932
Total
Investment return:
5 Net depreciation on investments 39,546 16,277 2,557 58,380
6 Interest, dividends, and capital distributions 582 2,425 - 3,007
7 Total investment return 40,128 18,702 2,557 61,387
8 Contributions to endowment - - 2,422 2,422
9
Appropriation of endowment assets
for expenditure (9,171) (5,527) - (14,698)
Other changes:
Transfers to create board-designated
10
endowment funds 12,087 - - 12,087
11 Endowment net assets, April 30, 2014 $370,606 $ 85,446 $ 90,078 $546,130
63

Notes to Financial Statements April 30, 2014 and 2013
The endowment net assets composition by type of fund at April 30, 2013, is as follows (in thousands):
Unrestricted
Temporarily
Restricted
Permanently
Restricted
1 Donor-restricted endowment funds $ (20) $72,271 $85,099 $157,350
2 Board-designated endowment funds 327,582 - - 327,582
3 Total endowment funds $327,562 $72,271 $85,099 $484,932
Total
The changes in endowment net assets for the year ended April 30, 2013, are as follows (in thousands):
Unrestricted
Temporarily
Restricted
Permanently
Restricted
4 Endowment net assets, May 1, 2012 $283,070 $ 60,529 $ 80,006 $423,605
Total
Investment return:
5 Net appreciation on investments 36,309 14,273 1,322 51,904
6 Interest, dividends, and capital distributions 1,357 2,536 - 3,893
7 Total investment return 37,666 16,809 1,322 55,797
8 Contributions to endowment - - 3,771 3,771
9
Appropriation of endowment assets
for expenditure (8,111) (5,067) - (13,178)
Other changes:
10
Transfers to create board-designated
endowment funds 15,950 - - 15,950
11
Transfers to remove board-designated
endowment funds (1,013) - - (1,013)
12 Endowment net assets, April 30, 2013 $327,562 $ 72,271 $ 85,099 $484,932
Funds with Deficiencies
From time to time, the fair value of the assets associated with individual restricted endowments may fall below the level the donor
or UPMIFA requires the University to retain as a fund of perpetual duration. In accordance with generally accepted accounting
principles, deficiencies of this nature reported in unrestricted net assets were $20,000 at April 30, 2013. The deficiency resulted
from market fluctuations that occurred shortly after the investment of new permanently restricted contributions and continued
appropriation for certain programs deemed prudent by the Board of Trustees. There were no deficient funds as of April 30, 2014.
Return Objectives, Risk Parameters, and Strategies
The University’s objective is to earn a predictable, long-term, risk-adjusted total rate of return to support the designated programs.
The University recognizes and accepts that pursuing such a rate of return involves risk and potential volatility. The generation of
current income will be a secondary consideration. The University has established a policy portfolio, or normal asset allocation.
The University targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its
long-term return objectives within prudent risk constraints. While the policy portfolio can be adjusted from time to time, it is
designed to serve for long-time horizons based upon long-term expected returns.
Spending Policy and How the Investment Objectives Relate to Spending Policy
The University has a policy of appropriating for distribution each year 5% of the endowment fund’s average fair value calculated
on an annual basis over the preceding three fiscal years. In establishing this policy, the University considered the long-term
expected return on its endowment. Accordingly, over the long term, the University expects the current spending policy to allow
its endowment to grow at an average of 3% annually. This is consistent with the University’s objective to provide additional real
growth through new gifts and investment return.
64

Notes to Financial Statements April 30, 2014 and 2013
11. Employee Benefit Plans
Eligible employees of the University may participate in two contributory pension and retirement plans, one administered by the
Teachers Insurance and Annuity Association and College Retirement Equities Fund and the other administered by Fidelity
Investments. Under these plans, contributions are fully vested and are transferable by the employees to other covered employer
plans. Participating employees contribute a minimum of 1% up to a maximum of 5% of their base salary. The University
contributes an amount equal to twice the employee’s contribution.
The University’s contribution to these plans was approximately $15.5 million and $15.0 million for the years ended
April 30, 2014 and 2013, respectively.
Postretirement Healthcare Plan
The University provides certain healthcare benefits for retired employees. The plan is contributory and requires payment of
deductibles. The University’s policy is to fund the cost of medical benefits on the pay-as-you-go basis. The plan’s measurement
dates are April 30, 2014, and April 30, 2013, respectively.
Net periodic postretirement benefit cost for the years ended April 30, 2014 and 2013, includes the following components
(in thousands):
2014 2013
1 Service cost $ 1,041 $ 939
2 Interest cost 873 969
3 Amortization of transition obligation over 20 years - 503
4 Amortization of net loss 303 332
5 Net periodic postretirement benefit cost $ 2,217 $ 2,743
The following table sets forth the postretirement benefit plan’s funded status and the amount of accumulated postretirement
benefit plan costs for the years ended April 30, 2014 and 2013, using a measurement date of April 30 (in thousands):
2014 2013
Change in accumulated postretirement benefit obligation:
6 Accumulated postretirement benefit obligation at beginning of year $ 25,599 $ 24,869
7 Service cost 1,041 939
8 Interest cost 873 969
9 Net actuarial (gain)/loss (1,149) (19)
10 Plan participants’ contributions 552 518
11 Benefits paid (1,812) (1,677)
12 Accumulated postretirement benefit obligation at end of year $ 25,104 $ 25,599
Change in fair value of plan assets:
13 Fair value of plan assets at beginning of year $ - $ -
14 Plan participants’ contributions 552 518
15 Employer contributions 1,260 1,159
16 Benefits paid (1,812) (1,677)
17 Fair value of plan assets at end of year $ - $ -
Reconciliation of funded status:
18 Funded status (25,104) (25,599)
19 Postretirement benefit liability $(25,104) $(25,599)
65

Notes to Financial Statements April 30, 2014 and 2013
The following table sets forth the amounts not recognized in the net periodic benefit cost for the years ended
April 30, 2014 and 2013 (in thousands):
Amounts not recognized in net periodic benefit cost:
2014 2013
1 Net actuarial loss $ 5,645 $ 7,097
2 Transition obligation - -
3 Amounts included in unrestricted net assets $ 5,645 $ 7,097
The amounts expected to be amortized from unrestricted net assets into net periodic benefit cost for the year ended
April 30, 2015, are as follows (in thousands):
4 Actuarial gain $ 206
5 Amortization of transition obligation -
6 Total other changes in benefit obligations recognized in unrestricted net assets $ 206
Other changes in benefit obligations recognized in unrestricted net assets are as follows (in thousands):
7 Net actuarial loss $ 303
8 Transition obligation -
9 Total $ 303
The weighted discount rate used in the actuarial valuation at the April 30, 2014, and April 30, 2013, measurement dates is as follows:
2014 2013
10 End of year benefit obligation 4.00% 3.50%
11 Net periodic postretirement benefit cost 3.50% 4.00%
A 7% healthcare cost trend rate was assumed for fiscal year 2014, with the rate in the following fiscal years assumed to be
6.5%, 6.0%, 5.5%, 5.2%, and 5.1% until reaching an ultimate rate of 5% in fiscal year 2020, and thereafter. An increase in the
assumed healthcare cost trend rate of 1% would increase the aggregate of the service and interest cost by approximately $242,000
and $225,000 for 2014 and 2013, respectively, and the accumulated postretirement benefit obligation at April 30, 2014 and
2013, by approximately $1,561,000 and $1,547,000, respectively. A decrease in the assumed healthcare cost trend rate of 1%
would decrease the net periodic postretirement benefit cost by approximately $200,000 and $188,000 for 2014 and 2013,
respectively, and the accumulated postretirement benefit obligations at April 30, 2014 and 2013, by approximately $1,335,000
and $1,328,000, respectively.
The expected contributions by the University to the plan are as follows:
Year ending April 30
Payment with
Medicare
Part D Subsidy
Payment
without
Medicare
Part D Subsidy
Medicare
Part D Subsidy
Receipts
12 2015 $1,265,385 $1,390,497 $125,112
13 2016 1,379,769 1,530,042 150,273
14 2017 1,442,555 1,606,443 163,888
15 2018 1,487,588 1,664,323 176,735
16 2019 1,519,362 1,705,646 186,284
17 2020–2024 9,134,063 9,134,063 -
66

Notes to Financial Statements April 30, 2014 and 2013
12. Expenses
For the years ended April 30, 2014 and 2013, the University’s program services and supporting services were as follows
(in thousands):
2014 2013
Program services
1 Instruction $151,689 $147,811
2 Research 49,907 49,295
3 Public service 24,181 20,803
4 Academic support 61,982 60,202
5 Student services 42,186 40,440
6 Total program services 329,945 318,551
Supporting services
7 Institutional support 89,164 83,284
8 Auxiliary enterprises 55,924 62,150
9 $475,033 $463,985
For the years ended April 30, 2014 and 2013, the University’s fundraising expenses totaled approximately $18.1 million and
$16.9 million, respectively. The expenses are included in institutional support in the accompanying statements of activities.
13. Net Assets
Temporarily restricted net assets consist of the following at April 30, 2014 and 2013 (in thousands):
2014 2013
10
Unspent contributions and related investment
income for instruction and faculty support $ 97,009 $ 84,180
11 Gifts received for construction of facilities 6,047 7,723
12 $103,056 $ 91,903
Permanently restricted net assets were held, the income of which will benefit the following at April 30, 2014 and 2013
(in thousands):
2014 2013
13
Permanent endowment funds, for scholarships
and related academic activity $ 74,795 $ 73,158
14 Interest in trust assets 17,827 15,922
15 Student loans 6,585 6,176
16 $ 99,207 $ 95,256
67

Notes to Financial Statements April 30, 2014 and 2013
14. Operating Leases
The University leases office space and buildings used for student housing with terms ranging from three to ten years. The leases
for student housing will expire at various times throughout 2014 and 2015. The office space lease does not expire until 2018.
Minimum lease payments under these agreements are as follows (in thousands):
Year ending April 30:
1 2015 $1,411
2 2016 519
3 2017 249
4 2018 168
5 2019 -
6 Thereafter -
7 $2,347
Rent expense in 2014 and 2013 was approximately $4.9 million and $6.0 million, respectively.
15. Commitments and Contingencies
At April 30, 2014 and 2013, commitments of the University under contracts for construction of plant facilities amounted to
approximately $97.0 million and $47.4 million, respectively. Subsequent to April 30, 2014, the University entered into
commitments with various investment fund managers totaling $7.0 million.
Amounts received and expended by the University under various federal programs are subject to audit by governmental agencies.
In the opinion of the University’s administration, audit adjustments, if any, will not have a significant effect on the financial
position, changes in net assets, or cash flows of the University.
The University is a party to various litigations, arising out of the normal conduct of its operations. In the opinion of the
University’s administration, the ultimate resolution of these matters will not have a materially adverse effect on the University’s
financial position, changes in net assets or cash flows.
16. Related Parties
Members of the University’s Board of Trustees and their related entities contributed approximately $1.3 million and $3.6 million
during the years ended April 30, 2014 and 2013, respectively, which is included in contribution revenue in the accompanying
statements of operations. Also for the years ended April 30, 2014 and 2013, approximately $4.7 million and $5.2 million,
respectively, were included in contribution receivable in the accompanying balance sheets.
17. Subsequent Events
The University has performed an evaluation of subsequent events through August 29, 2014, which is the date the financial
statements were issued. Nothing was noted which affect the financial statements as of April 30, 2014.
68

UNIVERSITY ADMINISTRATION
president’s cabinet
Cornelius M. Kerwin,* President
Scott A. Bass, Provost
Teresa Flannery, Vice President of Communication
Gail S. Hanson, Vice President of Campus Life
Mary E. Kennard, Vice President and General Counsel
Douglas Kudravetz, Chief Financial Officer, Vice President and Treasurer
Thomas J. Minar, Vice President of Development and Alumni Relations
David Swartz, Chief Information Officer
David E. Taylor, Chief of Staff and Secretary, Board of Trustees
deans
Mary L. Clark, Interim Dean of Academic Affairs and Senior Vice Provost
Erran Carmel, Interim Dean, Kogod School of Business
James M. Goldgeier, Dean, School of International Service
Claudio M. Grossman, Dean, Washington College of Law
Barbara S. Romzek, Dean, School of Public Affairs
Jeffrey Rutenbeck, Dean, School of Communication
Peter Starr, Dean, College of Arts and Sciences
Jonathan Tubman, Vice Provost for Research and Dean of Graduate Studies
Carola Weil, Dean, School of Professional and Extended Studies
other senior administrators
Nancy Davenport, University Librarian
William Walker, Director, Athletics and Recreation
BOARD OF TRUSTEES
Jeffrey A. Sine,* Chair
Jack C. Cassell,* Vice Chair
Gary M. Abramson*
Gina F. Adams*
Stephanie M. Bennett-Smith
Patrick Butler*
Kim Cape
Gary D. Cohn*
Pamela M. Deese*
David R. Drobis*
Marc N. Duber*
Hani M. S. Farsi*
Thomas A. Gottschalk
Gisela B. Huberman*
C. Nicholas Keating Jr.*
Cornelius M. Kerwin*
Margery Kraus*
Gerald Bruce Lee*
Charles H. Lydecker*
Robyn Rafferty Mathias*
Marcus Matthews
Alan L. Meltzer*
Regina L. Muehlhauser*
Candice J. Nelson
Arthur J. Rothkopf
Peter L. Scher*
Mark L. Schneider
James Ste.Marie*
Lacey Wootton
* alumna or alumnus of American University
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Nondiscrimination Notice
American University is an equal opportunity, affirmative action institution that operates in compliance with applicable laws and
regulations. The university prohibits discrimination and discriminatory harassment (including sexual harassment and sexual
violence) against any AU community member on the basis of race, color, national origin, religion, sex (including pregnancy),
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political affiliation, source of income, veteran status, an individual’s genetic information, or any other bases under federal or
local laws (collectively “Protected Bases”). For information, contact the dean of students (dos@american.edu), assistant vice
president of human resources (employeerelations@american.edu), or dean of academic affairs (academicaffairs@american.edu);
write American University, 4400 Massachusetts Avenue NW, Washington, DC 20016; or call 202-885-1000.
Produced by University Publications,
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Rick Horowitz
Stephane Leblois
Jel Montoya
Ravi Raman
Gregg Sangillo
Megan Smith
Antoaneta Tileva
Rebecca Vander Linde
Additional images
Cover, American University Archives
p. 8, courtesy of SmithGroupJJR
p. 23, right, courtesy of Stephen MacAvoy
pp. 24–25, bottom, courtesy of Joshua Kaplan
pp. 26–27, bottom, Michael Tran
p. 27, right, courtesy of Caty Borum Chattoo
p. 41, Briana Clark-Forgie
For information regarding the accreditation and state licensing of American University,
please visit american.edu/academics. UP15-004
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