Overview of Financial Activities 2012-2013 Annual...2013 Financial Overview 4 Chart 2 displays the...

2013 Financial Overview 0

2012-2013 OVERVIEW OF

FINANCIAL ACTIVITIES

UNIVERSITY AT BUFFALO THE STATE UNIVERSITY OF

NEW YORK


Introduction .................................................................................................................................... 2 Overview ......................................................................................................................................... 3 Core Operating Activities

Financial Highlights.................................................................................................................. 3 State Appropriation .................................................................................................................. 9 University-wide Programs Appropriations ............................................................................. 12 Tuition Revenue ....................................................................................................................... 13 Comprehensive Fee .................................................................................................................. 15 Residence Halls and Apartments Revenue .............................................................................. 16 Activity Revenues ..................................................................................................................... 17 Facility and Administrative (F&A) Cost Recovery ................................................................... 18 Statement of Revenues and Expenses for Core Operating Activities ...................................... 19

Other Financial Highlights

Endowment and Similar Investments .................................................................................... 20 Long-term Debt ...................................................................................................................... 22 General University Service Fee ............................................................................................... 23 Sponsored Research Expenditure Activity ............................................................................. 24 Economic Impact .....................................................................................................................25

Components of Report Defined .................................................................................................... 26 University at Buffalo Annual Financial Statements Fiscal Years

Ended June 30, 2013 and 2012 ................................................................................... Appendix


The objective of the annual Overview of Financial Activities of the State University of New York at Buffalo (UB) is to provide UB’s leadership with a comprehensive summary of financial information for the campus to assist them with their financial decisions related to UB’s core operations. The operating statements and financial information in this report, for the year ended June 30, 2013, are prepared on a cash basis for core operations that includes funding from:

State tax support, tuition, fees, and service revenue

Residence halls and apartments operations

Agency, endowment income, and unrestricted gifts administered in the University at Buffalo Foundation

Facility and administrative cost recovery and other income administered in the Research Foundation for SUNY

Agency revenue administered in Campus Dining & Shops

A detailed description of the funding sources can be found on page 26 of the report. In addition to the core operating activities, the Appendix of this report presents UB’s Annual Financial Statements for the fiscal years ended June 30, 2013 and 2012, which were prepared on an accrual basis. The financial statements include restricted revenues that cannot be used for day-to-day operating activities, as well as the financial activity of closely affiliated entities, both of which are not included in the Overview of Financial Activities. These entities or activities include sponsored research activity in the Research Foundation for SUNY and the University at Buffalo Foundation Services, Inc., the SUNY Construction Fund, and Campus Dining & Shops corporate activities.


Overview

The Overview of Financial Activities examines in-depth the University at Buffalo’s (UB) core financial operating condition and activities for the fiscal year ended June 30, 2013 and prior years. The report is focused on the core operations of UB that includes sources from:

State operating tax support Tuition and fees Service revenue Residence halls and apartments

operations

Agency, endowment income, and unrestricted

gifts administered in the University at Buffalo Foundation (UBF)

Research Foundation (RF) facility and administrative cost recovery and other revenue

Campus Dining & Shops (CDS) agency revenue

Amounts reported in the accompanying cash basis report are different from amounts reported in UB’s financial statements, which were prepared on an accrual basis and include activities from closely affiliated entities that UB’s management does not directly control. Other financial highlights outside of UB’s core operating activities are presented beginning on page 20 and include analysis of UB’s endowment fund investments, long-term debt, general university service fee, sponsored research activity, and UB’s economic impact on the Buffalo-Niagara region.

Core Operating Activities

Financial Highlights

Operating Revenues Operating revenues received in 2012-13 totaled $680 million as reported in Chart 1.

Tuition revenue (net of $10 million of State supported scholarship allowances) of $219 million was the largest source of revenue at 32% of the total. It was $59 million higher than State support of $160 million. State support shrank to 23% of total revenues.

Revenue from student fees of $60

million moved higher capturing 9% of total revenues.

Other revenue accounted for $133

million or 20% of the total and was comprised of revenue from sales and services, salary recovery from grants, and other miscellaneous revenues.

State support

$160 23%

Tuition $219 32%

Student fees $60 9%

Other $133 20%

Investment income

$21 3%

Auxiliary enterprises

$52 8%

F&A cost recovery

$35 5%

Chart 1: 2012-13 Operating Revenues ($ in millions)

Total Revenues $680 million


Chart 2 displays the operating revenues by source for fiscal years 2010-11 through 2012-13. Revenues for 2012-13 of $680 million were $50 million or 8% greater than $630 million for 2010-11. The significant changes were:

State support of $160 million fell $23 million or 13% from $183 million in 2010-11 as the State continued to reduce tax dollar support to UB.

Tuition revenue of $219 million rose $35 million or 19% from $184 million in 2010-11 mostly due to tuition rate increases by the SUNY Board of Trustees to offset shrinking State support.

Student Fees of $60 million increased $9 million or 18% from $51 million in 2010-11 mainly as a result of the Academic Excellence and Success Fee introduced in spring 2012.

Other revenue of $133 million grew $32 million or 32% from $101 million in 2010-11 due to increases in transfers from affiliated entities, hospital and clinical and continuing education revenues.

Operating Expenses by Function

Operating expenses of $632 million for 2012-13 are displayed according to functional classification in Charts 3 and 4.

Combined expenses for instruction, departmental research and academic support of $364 million represented 58% of total 2012-13 expenses.

Institutional support of $81 million

includes activities that are of a general character and for the general executive and administrative offices serving UB as a whole. (Includes Office of the Chief Information Officer, University Business Services and Student Advisement, Resources & Financial Services).

Other expenses totaled $74 million and

consisted of expenses for public service, hospitals and clinics, residence halls, intercollegiate athletics, and other operating expenses.

$0 $50 $100 $150 $200 $250

Other

Investment income

F&A cost recovery

Student fees

Auxiliary enterprises

Tuition

State support

Chart 2: 2010-11 through 2012-13 Operating Revenues by Source

($ in millions)

2012-13 2011-12 2010-11

Instruction $289 46%

Departmental research

$46 7%

Academic support

$29 5%

Student services

$34 5%

Institutional support

$81 13%

Operation and maintenance

of plant $57 9%

Scholarships and

fellowships $22 3%

Other $74

12%

Chart 3: 2012-13 Operating Expenses by Functional Classification

($ in millions)

Total Expenses $632 million


Total operating expenses of $632 million in 2012-13 was equivalent to the level spent in 2010-11 of $631 million. Major spending changes between functions are explained as follows:

Instruction increased $20 million to $289 million largely due to higher expenditures in the School of Medicine and Biomedical Sciences, School of Dental Medicine, and School of Engineering and Applied Sciences of $7, $3 and $2 million, respectively.

Institutional support declined $25 million to $81 million primarily as a result of reduced expenditures

related to the closure of the UB Micro store in June 2012 of nearly $8 million and designation of UB Foundation funds for future use that totaled almost $13 million.

Scholarships and fellowships rose $3 million or 16% with support from Income Fund Reimbursable

resources to assist students with higher tuition.

Operating Expenses by Type

Charts 5 and 6 present UB’s operating expenses by type of expenditure.

Employee salaries totaling $419 million was the largest expense at 66% of total expenses.

The 2012-13 salary expense breakdown by funding source, which includes the Dormitory Income Fund Reimbursable (DIFR), Income Fund Reimbursable (IFR) and State University Tuition Reimbursable Account (SUTRA) funds, was:

State Operating $337 million 80%

DIFR, IFR & SUTRA $36 million 9%

UB Foundation $33 million 8%

Research Foundation $13 million 3%

Employee fringe benefits expense of $26 million excludes fringe benefits for salaries supported by State operating funds as those costs are paid directly by the State. Employee fringe benefits paid directly by the State amounted to $172 million in 2012-13.

$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325

Other

Scholarships and fellowships

Academic support

Departmental research

Student services

Operation and maintenance of plant

Institutional support

Instruction

Chart 4: 2010-11 through 2012-13 Operating Expenses by Functional Classification

($ in millions)

2012-13 2011-12 2010-11


Salaries combined with fringe benefits expense totaled $445 million, which was $8 million or 2% higher than $437 million in 2010-11. Although the number of employees grew by nearly 600 or 5%, growth in payroll expense was negligible. Negotiated salary increases for State employees were eliminated in 2011-12 and 2012-13. Also, the deficit reduction leave program implemented in 2011-12, negotiated by the State for certain bargaining units, reduced costs.

Expenses for items other than salaries and fringe benefits totaled $187 million or 30% of total expenses in 2012-13. These expenses declined $7 million or 4% from $194 million in 2010-11. $3 million of utility expense savings combined with an $8 million utility debt payoff in 2010-11 contributed to a $16 million or 13% drop in contractual services offset by a rise in equipment and maintenance of $8 million.

Net Results from Core Operating Activities The net results from core operating activities significantly recovered in 2012-13 after years of declines since 2008-09, as displayed in Chart 7.

2012-13 resulted in a net operating increase of $48 million compared to a net increase of $22

million in 2008-09.

Salaries $419 67%

Employee fringe

benefits $26 4%

Supplies $32 5%

Travel $14 2%

Contractual services

$108 17%

Equipment and

maintenance $33 5%

Chart 5: 2012-13 Operating Expenses by Type

($ in millions)

Total Expenses $632 million

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450

Travel

Employee fringe benefits

Equipment and maintenance

Supplies

Contractual services

Salaries

Chart 6: 2010-11 through 2012-13 Operating Expenses by Type

($ in millions)

2012-13 2011-12 2010-11


Although State tax dollar support sharply declined since 2008-09, revenues in 2012-13 jumped by $64 million or 10% from 2008-09 because of strong growth in tuition, student fees, sales and services, facility and administrative cost recovery and increased transfers from affiliated entities.

Expenses increased from 2008-09 by $38 million or 6% fueled by a combined rise in salaries and employee fringe benefits totaling $35 million.

Available Balances

Available balances for the funding sources supporting the core operations of UB are defined as the unspent cash or budget at the end of a fiscal year. Chart 8 and Table 1 provide the available balances at the close of each fiscal year from 2008-09 to 2012-13 by funding source.

-$10

$0

$10

$20

$30

$40

$50

$60

$580

$590

$600

$610

$620

$630

$640

$650

$660

$670

$680

2008-09 2009-10 2010-11 2011-12 2012-13

Ne

t r

esu

lts

Re

ve

nu

es a

nd

ex

pe

nse

s

Chart 7: 2008-09 through 2012-13 Net Results from Core Operating Activities

($ in millions)

Revenues Expenses Net results

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 8: Available Balances ($ in thousands)

F&A Cost Recovery State Operating State Reimbursables UB Foundation Other


The total available balances grew $54.6 million or 26.2% from $208.7 million in 2008-09 to $263.3 million in 2012-13 primarily due to:

An increase of $43.2 million or 153.3% in facility and administrative (F&A) cost recovery balances produced by the consistent growth in revenue and decline in expenditures from this funding source in recent years resulting from UB’s focus on utilizing State balances over other funds.

A $42.9 million or 102.3% rise in State reimbursables balances created mainly by significant

reductions in expenditures from IFR and DIFR funds in 2011-12 and a 23.7% jump in combined IFR and SUTRA revenues in 2012-13. SUNY’s cash reserve policy, implemented June 30, 2011, for IFR and SUTRA accounts recommends cash be maintained based on a range of 10% to 25% of operating expenditures.

Growth in UB Foundation balances of $32.8 million or 41.1% from a transfer of available balances

for State endowment accounts in 2009-10, increase in rental income from Greiner Hall that opened in August 2011 and a substantial drop of $11.1 million in expenditures in 2012-13 from 2011-12.

A reduction of $63.7 million or 122.9% from $51.8 million in 2008-09 in State operating available

balances. UB utilized these reserves as substantial State imposed budget cuts began in 2009-10 and continued through 2011-12. State operating balances were over-expended in both 2011-12 and 2012-13. IFR cash balances were utilized to support the over-expenditures. Chart 8 and Table 1 display the deficit balances before the utilization of IFR balances.

Table 1: Available Balances 2008-09 through 2012-13 ($ in thousands)

Funding Source 2008-09 2009-10 2010-11 2011-12 2012-13

F&A Cost Recovery $28,164 $37,762 $51,522 $59,192 $71,324

% Change - 34.1% 36.4% 14.9% 20.5%

State Operating 51,826 51,814 32,972 (4,918) (11,881)

% Change - 0.0% -36.4% -114.9% -141.6%

State Reimbursables (IFR, SUTRA & DIFR)

41,942 31,555 39,528 61,970 84,831

% Change - -24.8% 25.3% 56.8% 36.9%

UB Foundation 79,868 89,226 84,148 93,522 112,680

% Change - 11.7% -5.7% 11.1% 20.5%

Other 6,884 3,650 4,473 5,351 6,322

% Change - -47.0% 22.6% 19.6% 18.2%

Total $208,684 $214,007 $212,643 $215,117 $263,276

$ Change - $5,323 $(1,364) $2,474 $48,159

% Change - 2.6% -0.6% 1.2% 22.4%


State Appropriation UB receives State appropriation to support its core operating budget from a combination of State tax dollar support and revenues from tuition and certain other sources (revenue targets). Chart 9 presents the State appropriation supported by combined tax dollars and campus revenues from 2008-09 through 2012-13. Detailed analysis of these two components of the State appropriation is provided later in this section. The State appropriation components dramatically shifted since 2008-09 as a result of limited State resources and tuition revenue growth. Notable changes in 2012-13 were:

Appropriation of $355.2 million fell $13.1 million or 3.6% from $368.3 million in 2008-09.

Appropriation reversed the downward trend growing $11.1 million or 3.2% from 2011-12.

Tax dollar support dropped to 42% of the total appropriation, down 15% from 57% in 2008-09.

Campus revenues grew $49.2 million, but fell short in covering a cut in tax dollars of $62.3 million since 2008-09.

State Appropriation 2008-09 2009-10 2010-11 2011-12 2012-13

Total $ $368,300 $357,683 $346,967 $344,019 $355,164

% Change - -2.9% -3.0% -0.9% 3.2%

State Appropriation Supported by Tax Dollars The State appropriation supported strictly by State tax dollars is reported in Chart 10 and Table 2 for the fiscal years ending June 30, 2009 through 2013. The State tax dollar support is categorized as support for the base budget, salary increases and utilities. This analysis excludes appropriation provided by the State for employee fringe benefit costs, which are funded and paid directly by the State. Tax dollar support significantly declined from 2008-09 by $62.3 million or 29.5% to $149.2 million in 2012-13. Following is the five year change in the three components from 2008-09:

Base budget dropped $71.3 million or 78.0%.

Salary increase funding for the State’s negotiated salary increases provided to employees was up $8.7 million or 9.1%.

Utilities funding increased $347 thousand or 1.4%.

57% 51% 48% 44% 42%

43% 49% 52% 56% 58%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 9: State Appropriation

($ in thousands)

Tax dollars Campus revenues


Table 2: State Appropriation Supported by Tax Dollars ($ in thousands)

Support Category 2008-09 2009-10 2010-11 2011-12 2012-13

Base budget $91,422 $57,014 $43,096 $21,300 $20,109

% Change - -37.6% -24.4% -50.6% -5.6%

Salary increases 95,153 99,283 99,276 103,330 103,830

% Change - 4.3% 0.0% 4.1% 0.5%

Utilities 24,869 25,000 25,007 25,216 25,216

% Change - 0.5% 0.0% 0.8% 0.0%

Total State tax appropriation $211,444 $181,297 $167,379 $149,846 $149,155

% Change - -14.3% -7.7% -10.5% -0.5%

State Appropriation Supported by Campus Revenues (Revenue Targets) Chart 11 and Table 3 display the trend in campus revenue targets that support our State appropriation from 2008-09 through 2012-13. Certain revenues collected by UB are required to be transmitted to the State in return for State appropriation. These revenues include a portion of our tuition revenue and other campus revenues. In the following analysis, revenues labeled as “Other revenues target” include:

Interest income on State balances.

$0$20,000

$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000$200,000$220,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 10: State Appropriation Supported by Tax Dollars

($ in thousands)

Base budget Salary increase funding

Utilities funding Total State tax appropriation


Overhead from Dormitory Income Fund Reimbursable (DIFR) accounts. Discontinued July 1, 2012.

College fee.

A portion of certain other fees: graduate application, late payment, late registration, library fines, returned check, and academic transcript fees. Discontinued July 1, 2012.

Research Foundation (RF) revenue tithe (effective 2009-10). Discontinued July 1, 2012. Beginning July 1, 2012, the other revenues target no longer included DIFR overhead, revenues from other fees and the RF revenue tithe in order to accommodate an increase in the tuition revenue target. Except for the RF revenue tithe, which was eliminated, the DIFR overhead and fee revenue were moved to the Income Fund Reimbursable fund. State appropriation supported by campus revenues in 2012-13 rose $49.2 million or 31.3% since 2008-09. Consistent increases in the tuition revenue target were necessary to partially offset the substantial decline in tax dollar support.

Table 3: State Appropriation Supported by Revenue Targets ($ in thousands)

Support Category 2008-09 2009-10 2010-11 2011-12 2012-13

Tuition revenue target $152,053 $169,251 $175,244 $189,838 $205,349

% Change - 11.3% 3.5% 8.3% 8.2%

Other revenues target 4,803 7,135 4,344 4,335 660

% Change - 48.6% -39.1% -0.2% -84.8%

Total campus revenues target

$156,856 $176,386 $179,588 $194,173 $206,009

% Change - 12.5% 1.8% 8.1% 6.1%

$140,000

$150,000

$160,000

$170,000

$180,000

$190,000

$200,000

$210,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 11: State Appropriation Supported by Revenue Targets

($ in thousands)

Tuition revenue target Other revenues target


University-wide Programs Appropriations

In addition to State appropriations received to support UB’s core operating budget, UB receives appropriations earmarked for specific purposes. A portion of the university-wide appropriations benefitting UB is accounted for on the financial records of SUNY rather than UB’s records and are not reported in the Statement of Revenues and Expenses for Core Operating Activities on page 19. Chart 12 provides the appropriations received for programs that flowed through UB’s financial records and for those programs that are reported on SUNY’s financial records for a five year period. Additionally, Table 4 offers details on the various programs supported from 2008-09 through 2012-13. Funding in 2012-13 declined by 10.5% or $2.8 million from 2011-12 since the Multidisciplinary Center for Earthquake Engineering Research (MCEER) and Research Institute on Addictions were no longer designated as university-wide programs.

Table 4: Components of University-wide Programs Appropriations ($ in thousands)

University-wide Programs 2008-09 2009-10 2010-11 2011-12 2012-13

UB Financial Records:

Earthquake Center (MCEER) $1,867 $1,748 $1,643 $648 $0

Educational Opportunity Center 5,050 4,731 4,737 4,680 4,587

Educational Opportunity Program 2,418 2,099 2,033 2,054 2,175

Empire Innovation 2,782 2,854 2,545 2,433 2,202

Research Institute on Addictions 3,179 2,977 2,798 1,806 0

Miscellaneous 1,795 1,818 1,714 1,608 1,657

Subtotal UB 17,091 16,227 15,470 13,229 10,621

SUNY Financial Records:

Graduate Tuition Support 9,809 9,809 9,809 9,809 9,809

Underrepresented Graduate Fellowships 1,498 1,481 1,452 1,452 1,452

Miscellaneous 1,060 2,429 2,156 1,975 1,817

Subtotal SUNY 12,367 13,719 13,417 13,236 13,078

Total University-wide $29,458 $29,946 $28,887 $26,465 $23,699

% Change - 1.7% -3.5% -8.4% -10.5%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 12: University-wide Programs Appropriations ($ in thousands)

UB financial records SUNY financial records


Tuition Revenue

Reported in Chart 13 and Table 5 is tuition revenue for 2008-09 through 2012-13 collected from New York State resident and nonresident students. Tuition revenue includes $9.8 million of State supported scholarship allowances. Significant changes from 2008-09 include:

2012-13 was the second year of the SUNY Board of Trustees five-year rational tuition plan. SUNY increased fall 2012 tuition rates by 6% for resident undergraduate and graduate students, 9% for resident professional programs and 10% for most nonresident programs. UB collects tuition revenues from overseas academic programs (OAP), summer session, and contract courses that are excluded from this tuition analysis. As mandated by SUNY, tuition revenues for OAP, summer session and contract courses are reported separately from regular academic-year tuition reported in Chart 13 and Table 5. In 2012-13, $16.8 million of tuition revenue was collected to support instructional activities from OAP, summer session and contract courses. Additionally, student headcount for these programs is not included in the headcount provided in Chart 14. Annual tuition rates paid by resident and nonresident students are presented in Charts 15 and 16.

Table 5: Tuition Revenue ($ in thousands)

Tuition revenue up

$61 million or 36%

Resident

undergraduate annual tuition rate up

$910 or 20%

Nonresident

undergraduate annual tuition rate up

$4,450 or 38%

Graduate/Professional

annual tuition rates up

from 27% to 59%

Nonresident students

up 389 or 8%

Nonresident revenue

up $26 million or 55%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 13: Tuition Revenue ($ in thousands)

Resident Nonresident

2008-09 2009-10 2010-11 2011-12 2012-13

Resident $120,035 $132,221 $135,013 $140,372 $154,983

% Change - 10.2% 2.1% 4.0% 10.4%

Nonresident 47,948 55,674 59,037 63,161 74,214

% Change - 16.1% 6.0% 7.0% 17.5%

Total $167,983 $187,895 $194,050 $203,533 $229,197

% Change - 11.9% 3.3% 4.9% 12.6%


22,569 22,697 22,442 21,922 22,051

4,896 5,138 5,281 5,142 5,285

03,0006,0009,000

12,00015,00018,000

21,00024,00027,00030,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 14: Headcount for Tuition Billable Students

Resident Nonresident

27,835 Total 27,723 27,064

27,465 27,336

$0

$3,000

$6,000

$9,000

$12,000

$15,000

$18,000

$21,000

$24,000

$27,000

$30,000

$33,000

Chart 15: Annual Tuition Rates for Residents of New York State

2008-09 2009-10 2010-11 2011-12 2012-13

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Chart 16: Annual Tuition Rates

for Nonresidents of New York State

2008-09 2009-10 2010-11 2011-12 2012-13


Comprehensive Fee

The comprehensive fee is a consolidation of campus-required fees paid by students attending UB unless they meet waiver requirements. The components of the comprehensive fee include the following: college, transportation, technology, campus life, health service, transcript and athletics (undergraduate day students only). Table 6 provides a list of the annual rates charged to a full-time undergraduate student by component and Chart 17 illustrates the growth in comprehensive fee revenue over a 5 year period. The college fee component is excluded from Chart 17 because the revenue collected is transferred to the State University of New York and is redistributed to UB as State appropriation dollars. The generous rise in comprehensive fee revenue is mostly due to the increase in the rate offset by a minimal decline in students of 0.5% from 2008-09 as reflected in Chart 14 on page 14.

Table 6: Comprehensive Fee Annual Rates

Fee Component 2008-09 2009-10 2010-11 2011-12 2012-13

Athletics $430 $447 $474 $484 $496

Campus Life 170 177 201 201 206

College 25 25 25 25 25

Health Service 233 247 261 282 289

Technology 614 644 683 693 710

Transcript 10 10 10 10 10

Transportation 293 304 322 327 344

Total $1,775 $1,854 $1,976 $2,022 $2,080

% Change - 4.5% 6.6% 2.3% 2.8%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 17: Comprehensive Fee Revenue ($ in thousands)

Athletic Campus Life Health Service Technology Transcript Transportation

2012-13 Annual Fee Rate $2,080 UP

$305 or 17.2% from $1,775 in 2008-09

2012-13 Fee Revenue $46.2 million UP

$7.3 million or 18.6% from $38.9 million in 2008-09


Residence Halls and Apartments Revenue

Combined revenue from residence halls and apartments is the largest component of auxiliary enterprises operating revenue presented in Charts 1 and 2, found in the Financial Highlights section beginning on page 3, and on the Statement of Revenues and Expenses for Core Operating Activities on page 19. Other activity reported in auxiliary enterprises revenue includes sales and services for food services, campus store operations, intercollegiate athletics and transportation.

Revenue from residence halls is accounted for in Dormitory Income Fund Reimbursable (DIFR) State accounts while revenue from on-campus apartment rentals is administered through the University at Buffalo Foundation Faculty-Student Housing Corporation. UB offers a wide variety of on-campus housing options at various costs that are designed around the needs of the students.

Since 2008-09 total revenue from residence halls and apartments grew $10.9 million or 22.9% to $58.7 million in 2012-13, as reflected in Chart 18. Housing rate increases in 2010-11, following no increases in the previous two years, combined with the opening of Greiner Hall in 2011-12 accounted for the growth. Room rates for residence halls increased 5.4% from 2011-12 to primarily support campus initiatives and residential building maintenance.

Residence Halls and Apartments 2008-09 2009-10 2010-11 2011-12 2012-13

Total revenue $47,753 $46,923 $54,174 $56,821 $58,689

% Change - -1.7% 15.5% 4.9% 3.3%

71% 71% 68% 62% 62%

29% 29% 32% 38% 38%

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 18: Residence Halls and Apartments Revenue

($ in thousands)

Residence halls Apartments


Activity Revenues

Various activities conducted at UB produce revenues that are used to enhance UB’s operations. The revenues are accounted for in Income Fund Reimbursable accounts and in agency accounts in the UB Foundation (UBF), Research Foundation (RF) and Campus Dining & Shops (CDS). Those activities are grouped into 5 categories:

Sales and services revenue generating activities include rentals (excluding housing), computer store sales, continuing education, dental clinics, and inventions and licenses. Chart 19 displays the activity revenues received by campus units beginning in 2008-09 through 2012-13. Activity revenues totaled $114.7 million in 2012-13, which was $13.5 million or 13.4% greater than $101.2 million in 2008-09. Principal reasons for the net increase were:

Miscellaneous student fees revenue rose $7.8 million or 130.9% due to higher fee rates and the introduction of the Academic Excellence and Success Fee in spring 2012.

Sales and services revenue strengthened by $6.1 million or 9.4% due to:

Growth in continuing education revenue of $8.1 million or 281.4%.

Higher rates charged by departments for sales and services that contributed $6.2 million.

Decline in computer store sales of $8 million or 63.0% mostly from decreased demand in hardware sold at the UBMicro store that closed in June 2012.

Investment income

Miscellaneous student fees

Salary recovery from

grants

Sales and services

Other miscellaneous

revenues

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 19: Activity Revenues ($ in thousands)

Investment income Miscellaneous student fees Salary recovery

Sales and services Other miscellaneous revenues


Facility and Administrative (F&A) Cost Recovery

Sponsored research programs generate two types of costs: direct costs and F&A costs (indirect costs). The F&A costs incurred by UB for accepting the sponsored research cannot be assigned easily and accurately to specific programs and therefore are calculated as a fixed percentage of all or a portion of a program’s direct costs. The calculated amount is recovered by UB and is used to support decanal units, several administrative units, research incentive programs, and various other financial commitments, as well as cover an annual administrative assessment by the Research Foundation (RF). Chart 20 portrays the trend in F&A cost recovery earned net and gross of the RF annual assessment. Net F&A cost recovery collected in 2012-13 was $31.8 million, which was $2.3 million or 7.7% higher than the amount collected in 2008-09 of $29.5 million. Factors contributing to the minimal increase were:

$776 thousand collected in 2012-13 on federal research awards funded by the American Recovery and Reinvestment Act (ARRA) of 2009.

Growth in direct costs, excluding funds from ARRA, of $1.6 million or 1.5% from 2008-09. Consistent federal F&A cost recovery rate of 58.5% for the five year period.

The F&A cost recovery reported in Chart 1 on page 3 represents the amount received rather than earned as reported in the previous paragraph. In 2012-13, the RF paid UB $35.2 million of the net F&A cost recovery earned that consisted of $8.4 million due from 2011-12 and $26.8 million from 2012-13. The RF will pay the 2012-13 balance of $5.0 million to UB in 2013-14.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 20: Facility and Administrative Cost Recovery ($ in thousands)

Gross RF assessment Net


University at Buffalo

Statement of Revenues and Expenses for Core Operating Activities For the Years Ended June 30, 2013 and 2012

($ in thousands)

2012-13 2011-12

Operating revenues:

Tuition $229,197 $203,533

Less: scholarship allowances (9,809) (9,809)

Net tuition 219,388 193,724

State support 159,776 163,075

Student fees 59,982 52,827

Auxiliary enterprises 51,624 47,876

Investment income 21,268 38,900

Facility and administrative cost recovery 35,222 29,253

Other operating revenue:

Salary recovery from sponsored programs 13,656 14,135

Sales and services 77,304 65,498

Other 42,033 21,860

Total operating revenues 680,253 627,148

Operating expenses by functional classification:

Instruction 288,580 274,068

Departmental research 46,487 43,570

Public service 2,648 4,326

Academic support 28,941 30,174

Student services 34,310 30,756

Institutional support 80,591 99,894

Operation and maintenance of plant 56,750 51,335

Scholarships and fellowships 22,232 19,547

Hospitals and clinics 5,414 6,332

Auxiliary enterprises:

Intercollegiate athletics 23,511 21,207

Student housing 41,580 43,016

Other 1,050 449

Total operating expenses by function 632,094 624,674

Net results of core operating activities $48,159 $2,474

Operating expenses by type:

Salaries $418,740 $409,220

Employee fringe benefits 25,663 24,729

Supplies 32,412 28,223

Travel 13,939 12,417

Contractual services 108,226 119,845

Equipment, repairs and maintenance 33,114 30,240

Total operating expenses by type $632,094 $624,674


Other Financial Highlights

Endowment and Similar Investments

UB Foundation’s (UBF) endowment consists of approximately 1,100 individual funds established for a variety of purposes, including both donor-restricted endowment funds and funds designated by UBF’s Board of Trustees to function as endowments. UBF’s Trustee Investment Committee supervises the management of UB’s endowment assets with the primary investment objective to maximize total investment return while preserving the inflation-adjusted purchasing power of the portfolio and providing a predictable stream of funding to programs. A professional consultant and investment managers share in the administration of the portfolio, with performance monitored by the investment committee. UBF targets a diversified asset allocation to achieve its long-term objectives within prudent risk parameters. Table 7 reports the market value and activity for UB’s endowment fund from 2008-09 through 2012-13. Additions to the endowment fund are predominantly contributions from donors while the amounts in the withdrawals column primarily represent dollars made available for spending to various UB units.

Table 7: Endowment Activity 2008-09 through 2012-13 ($ in thousands)

Year

Beginning Market Value

Additions

Investment Return

Withdrawals

Ending Market Value

2012-13 $511,020 $7,726 $59,576 $23,930 $554,392

2011-12 $494,791 $42,507 $5,280 $31,558 $511,020

2010-11 $428,851 $9,187 $83,533 $26,780 $494,791

2009-10 $410,464 $3,633 $41,277 $26,523 $428,851

2008-09 $552,663 $3,717 ($117,572) $28,344 $410,464

UB’s endowment fund asset allocation from 2008-09 through 2012-13 is displayed in Chart 21 on page 21. The asset allocation targets are proposed by the consultant and approved by the UBF investment committee. Significant changes to the targets from 2008-09 are provided in the adjacent diagram.

Chart 22 presents the annual nominal (not adjusted for inflation) returns net of fees and spending payout percentages for the endowment fund from 2008-09 through 2012-13. The spending payout is defined as funds made available from the endowment for university programs and administrative expenses, exclusive of management, brokerage, and custodial fees, as a percentage of the beginning market value. In terms of real dollars, the spending payout is relatively consistent as designed by the spending formula.

Down:

Cash 67%

International equity 46%

Up:

Domestic equity 156%

Hedge funds 43%

2012-13 market value of $554 million is below its

highest value of $582 million in 2006-07.


Year Domestic

equity International

equity Fixed

income Cash Hedge funds

Private equity

Real assets

2012-13 25.7% 21.0% 14.6% 3.2% 19.9% 12.1% 3.5%

2011-12 24.8% 16.9% 20.5% 2.0% 19.1% 12.5% 4.2%

2010-11 19.4% 23.3% 18.3% 0.6% 19.0% 10.6% 8.8%

2009-10 20.2% 22.1% 19.8% 1.7% 21.0% 9.3% 5.9%

2008-09 12.8% 32.4% 18.4% 9.3% 15.6% 6.7% 4.8%

-22.0%

10.7%

20.1%

-0.7%

12.0% 4.6%

5.2% 5.9%

6.0%

4.7%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 22: Endowment Annual Nominal Net Returns and Spending Payout %

Nominal return Spending payout

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 21: Endowment Market Value and Asset Allocation

($ in thousands)

Domestic equity International equity Fixed income

Cash Hedge funds Private equity

Real assets


Long-term Debt

UB has entered into agreements to finance various capital facilities or large equipment purchases. Table 8 lists the long-term debt outstanding at June 30, 2013 along with the current principal due in 2013-14 that will be paid by operating dollars.

Table 8: Long-term Debt Obligations at June 30, 2013 ($ in thousands)

Long-term debt

Maturity

Date

Interest

Rate

June 30, 2013

Balance

Principal Due in

2013-14

New York Power Authority Chillers Phase I ES-ESN-0249 loan payable from State funds in monthly installments of $16 including interest.

June 2016

Variable

rate, 0.86% in 2012-13

$561

$191

New York Power Authority Phase II ES-ESN-0370 loan payable from State funds in monthly installments of $30 including interest.

January 2022

Variable

rate, 0.86% in 2012-13

2,934

334

Village of Kenmore Housing Authority bonds (Flickinger Project) payable from UBF funds in monthly installments of $47 including interest.

January 2028

4.95%

5,887

281

Dormitory rehabilitation projects – various dormitory projects through Dormitory Authority of the State of New York (DASNY) bond or revolving loans. Payable from State Dormitory Income Fund Reimbursable funds.

June 2031

Varies

49,015

4,155

Town of Amherst Development Corporation bonds (South Lake Village) payable from UBF funds in annual principal installments that escalate through maturity plus interest.

October 2035

Variable rate, 0.08%

to 0.23% range in 2012-13

23,035

505

Town of Amherst Development Corporation bonds (Flint Village and Creekside Village Refunding) payable from UBF funds in monthly principal installments that escalate through maturity plus interest. August 2042

Variable rate,

1.53% to 1.56% in 2012-13 31,805 720

Town of Amherst Development Corporation bonds (Greiner Hall and Hadley Village) payable from UBF funds in annual principal installments that escalate through maturity plus interest. October 2045

Adjusted annually

ranges from 2.25% to

5.00% 79,910 1,875

Total debt obligations

$193,147 $8,061


General University Service Fee

A general university service fee (GUSF) of 13% is charged on external revenues that are deposited into State Income Fund Reimbursable (IFR), University at Buffalo Foundation (UBF), Research Foundation (RF) and Campus Dining & Shops (CDS) accounts. GUSF is not applied to gifts, sponsored programs and CDS corporate activity. Chart 23 presents GUSF collections by entity from 2008-09 through 2012-13. Total GUSF collected escalated by $11.5 million or 199.0% to $17.3 million in 2012-13 from $5.8 million in 2008-09. This significant rise is explained by:

Increases in the GUSF rate of 3% on July 1, 2010 and November 1, 2011. Constant growth in annual student fee revenue in the State IFR accounts.

Year State IFR UBF RF CDS Total

2012-13 $13,192 $3,930 $177 $13 $17,312

2011-12 $9,505 $3,437 $158 $14 $13,114

2010-11 $8,571 $1,994 $121 $11 $10,697

2009-10 $4,440 $1,290 $49 $6 $5,785

2008-09 $4,059 $1,685 $43 $4 $5,791

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 23: General University Service Fee Collections ($ in thousands)

State IFR UBF RF CDS


Sponsored Research Expenditure Activity

UB is a research-intensive public university that utilizes two fiscal agents to administer its sponsored research grants and contracts as illustrated below:

Although direct sponsored research activity is not included in the core operating statements, it is included in UB’s financial statements. Sponsored research expenditure activity as displayed in Chart 24 and Table 9 is summarized as follows:

2012-13 expenditures of $150.4 million were $6.0 million or 4.2% greater than the amount in 2008-09 of $144.4 million.

Funding from the federal government’s American Recovery and Reinvestment Act (ARRA) accounted for $2.5 million of this increase, without which the increase would have been 2.5%.

Expenditures in 2012-13 dropped $6.7 million from $157.1 million in 2011-12 due to ARRA funding falling $7.1 million or 74.3%.

Other sponsors include foreign sponsors, non-profit organizations and those that cannot be easily categorized into the other sponsor types.

Each year the National Science Foundation (NSF) conducts a survey of research and development expenditures at colleges and universities across the country. Expenditures reported in this survey include not only the externally funded research reported in Chart 24 and Table 9, but also research supported by various institutional funds and research conducted by UB faculty at affiliated institutions (CUBRC, Inc., Hauptman-Woodward Medical Research Institute, Kaleida Health, Roswell Park Cancer Institute, and the Veterans Affairs of Western New York Healthcare System from 2007-08 through 2009-10). The total expenditures for 2012-13 reported to the NSF were $385.0 million.

SUNY Research Foundation

Public Organizations

Private Organizations

UB Foundation Services, Inc.

(with the prior approval of the Provost and Dean)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

2008-09 2009-10 2010-11 2011-12 2012-13

Chart 24: Sponsored Research Expenditure Activity ($ in thousands)

Federal State and local Industry Other


Table 9: Sponsored Research Expenditure Activity 2008-09 through 2012-13

($ in thousands)

Sponsor 2008-09 2009-10 2010-11 2011-12 2012-13

Federal (without ARRA) $91,468 $88,915 $85,597 $91,744 $90,950

% Change - -2.8% -3.7% 7.2% -0.9%

ARRA (Federal only) - 9,617 14,064 8,159 1,813

Subtotal Federal 91,468 98,532 99,661 99,903 92,763

% Change - 7.7% 1.2% 0.2% -7.2%

State and local 15,790 14,162 14,166 13,203 15,446

% Change - -10.3% 0.0% -6.8% 17.0%

Industry 8,603 7,202 8,301 9,462 8,348

% Change - -16.3% 15.3% 14.0% -11.8%

Other 28,495 29,035 29,834 34,549 33,869

% Change - 1.9% 2.8% 15.8% -2.0%

Total expenditures $144,356 $148,931 $151,962 $157,117 $150,426

% Change - 3.2% 2.0% 3.4% -4.3%

Economic Impact

The economy of the Buffalo-Niagara region benefits in many ways from UB’s educational and research activities conducted at its three campuses. The region also profits from UB’s capital projects as it purchases structures, constructs new buildings and renovates existing buildings that currently number 181 across its three campuses. UB’s Office of Science, Technology Transfer and Economic Outreach (STOR) promotes economic revitalization to the region by transferring technology developed at UB to the business community and has assisted in launching new companies through its incubator program. The combined expense activity from UB entities, as listed in the column labeled “Economic Impact” of Table 10 on page 27, was used to calculate the direct economic impact.

$1.4 Billion

Direct Economic

Impact

Almost 29,000 Students

12,230 Employees

Additional Financial Stimulus from Employees, Students and Visitors


Components of Report Defined

The Overview of Financial Activities (Overview) provides key financial information for the campus, focusing on operating activities directly controlled by campus management. This is in contrast to the financial statements of the campus, which includes entities that are closely affiliated with the campus and campus management may not have direct control over the operations. Furthermore, UB’s economic impact on the Buffalo-Niagara region, discussed on page 25, includes activities from independent organizations that the University has a close association with. In Table 10, the components of the Statement of Revenues and Expenses for Core Operating Activities on page 19 of the Overview are compared to the Statement of Revenues, Expenses and Changes in Net Assets on page 3 of UB’s Annual Financial Statements for fiscal years ended June 30, 2013 and 2012 (Appendix) and UB’s economic impact results. A list and description of components or entities included in the Overview, UB’s financial statements, and economic impact section are provided in the following paragraphs and table. New York State budget components supporting UB’s core operations that are contained in the Overview include the following:

State Operating Budget which is a combination of support from State tax dollars and campus revenues from tuition and certain other sources. Also, included are other earmarked State funds.

Income Fund Reimbursable (IFR) and State University Tuition Reimbursable Account (SUTRA) which are self-supporting funds that provide educational and related activities to students and clients from fee, service and tuition revenue.

Dormitory Income Fund Reimbursable (DIFR) which is a self-supporting fund used to administer room rental fees and charges.

Other components supporting UB’s core operations that are included in the Overview are:

University at Buffalo Foundation (UBF) agency, endowment income, and unrestricted gifts used to support and promote the educational and public service mission of UB. Companies included in the report are UBF, Inc., UBF Activities, Inc. and UBF Faculty-Student Housing Corporation.

Research Foundation (RF) dollars managed by UB generated from facility and administrative (F&A) cost recovery from sponsored programs and agency service fees.

Campus Dining & Shops (CDS) agency funds expended by campus departments for operating activities.

The following restricted revenue that cannot be used for day-to-day operating activities and financial activity of closely affiliated entities are not included in the balances reported in the Overview, but are included in UB’s financial statements and economic impact amounts:

Capital Budget activities tracked in the State University of New York (SUNY) Construction Fund system that includes construction in progress, capitalized interest and depreciation of assets.

Research activities funded from external contracts and grants administered through the RF for SUNY and UBF Services, Inc.

UBF restricted activities (UBF Corporation, endowment investments, and various property corporations).

Dining, retail, vending, campus identification cards, and catering services provided by CDS. Operations of independent organizations that are included in the amounts reported only in the economic impact section are:

Medical and dental services extended to patients by UB faculty through the Clinical Practice Plans. University Dental Resident Services PC and University Medical Resident Services PC. Student associations and clubs such as the Graduate Student Association, Medical Student Polity, and

Undergraduate Student Association.


Table 10: List of Components Included in Financial Reports COMPONENTS

OPERATING ACTIVITIES

FINANCIAL STATEMENTS

ECONOMIC IMPACT

State:

Capital Budget and related debt √ √

Dormitory Income Fund Reimbursable (DIFR) √ √ √

Imputed fringe benefits (Note 1) √ √

Income Fund Reimbursable (IFR) √ √ √

State Operating Budget √ √ √

State University Tuition Reimbursable Account (SUTRA) √ √ √

University-wide (flows through UB records) √ √ √

University-wide (flows through SUNY records) √ √

Other State funds (Note 2) √ √

University at Buffalo Foundation (UBF):

248 North Long Street, Inc. √ √

FNUB Inc. √ √

UBF Activities, Inc. √ √ √

UBF Corporation √ √

UBF Faculty-Student Housing Corporation √ √ √

UBF, Inc. √ √ √

UBF Incubator, Inc. √ √

UBF Services, Inc. √ √

University Dental Resident Services PC √

University Medical Resident Services PC √

Research Foundation (RF):

Direct sponsored research activity √ √

Facility and Administrative cost recovery √ √ √

Other (Note 3) √ √ √

Campus Dining & Shops (CDS):

Agency funds √ √ √

Operating activity for dining and retail √ √

Clinical Practice Plans √

Student Associations and Clubs √

Notes:

1. Fringe benefits for State Operating employees are funded and paid directly by the State.

2. Includes workstudy accounts, undistributed payroll accounts, Dr. Nuala McGann Drescher award and

United University Professions Development award.

3. Includes service and facility accounts, agency fee revenue, campus portion of royalty activity, and the

general university service fee on non-sponsored income.

-645-2505

0

STATE UNIVERSITY OF NEW YORK AT BUFFALO

ANNUAL FINANCIAL STATEMENTS

FISCAL YEARS ENDED JUNE 30, 2013 and 2012

1

Financial Statements ........................................................................................................................ 2

Notes to Consolidated Financial Statements .................................................................................. 4

Supplemental Schedules ................................................................................................................ 12

Table of Contents

2


ASSETS, LIABILITIES AND NET ASSETS

BALANCE AT JUNE 30, 2013 and 2012

Assets 2013 2012

Current assets:

Cash and cash equivalents (Note 6) $183,473,918 $158,548,980

Accounts and notes receivable, net (Note 7) 49,680,305 46,601,557

Other receivables (Note 8) 36,313,782 32,353,600

Short-term investments 380,139,626 366,336,321

Inventory 3,223,177 3,164,266

Prepaid expenses 2,214,511 1,274,223

Total current assets 655,045,319 608,278,947

Noncurrent assets:

Property, plant and equipment, net (Note 11) 1,181,113,883 1,046,304,848

Long-term investments 356,752,218 344,989,127

Other assets (Note 12) 9,387,573 10,324,988

Total noncurrent assets 1,547,253,674 1,401,618,963

Total assets $2,202,298,993 $2,009,897,910

Liabilities and Net Assets

Current liabilities:

Accounts payable $13,486,348 $21,827,916

Accrued expenses 9,079,035 10,577,486

Current portion of long-term debt 10,136,605 8,869,862

Deferred revenue 830,056 966,932

Other current liabilities 997,051 307,285

Total current liabilities 34,529,095 42,549,481

Noncurrent liabilities:

Long-term debt (Note 13) 219,921,279 254,097,580

Other long-term liabilities 516,989,599 467,719,933

Total noncurrent liabilities 736,910,878 721,817,513

Total liabilities 771,439,973 764,366,994

Net assets:

Unrestricted (1,801,731) (293,491,261)

Restricted – non expendable 195,495,577 161,503,198

Restricted – expendable 1,237,165,174 1,377,518,979

Total net assets 1,430,859,020 1,245,530,916

Total liabilities and net assets $2,202,298,993 $2,009,897,910

See accompanying notes to financial statements

3


STATEMENT OF REVENUES, EXPENSES and CHANGES in NET ASSETS

FOR THE YEARS ENDED JUNE 30, 2013 and 2012

2013 2012

Operating revenues:

Tuition and fees $269,505,627 $242,008,067

Less: scholarship allowance (49,899,582) (48,497,227)

Net tuition and fees 219,606,045 193,510,840

Grants and contracts 206,580,506 200,877,757

Private support and other 85,950,643 55,126,552

Auxiliary enterprises 105,693,121 98,394,805

Hospitals and clinical revenue 18,124,723 15,902,075

Total operating revenues * 635,955,038 563,812,029

Operating expenses:

Instruction 416,235,257 555,830,133

Research 125,842,227 140,051,595

Public service 9,295,190 27,792,838

Academic support 75,931,044 73,979,492

Student services 35,430,332 44,643,574

Institutional support 138,146,543 175,102,321

Operation and maintenance of plant 72,157,441 88,251,832

Depreciation 26,034,335 26,745,872

Scholarships and fellowships 13,585,740 15,903,465

Hospitals and clinics 7,448,955 9,892,488

Auxiliary enterprises 114,323,543 114,339,842

Total operating expenses 1,034,430,607 1,272,533,452

Nonoperating revenues (expenses):

State appropriations * 493,813,387 600,453,049

Endowment and investment income * 77,418,251 (2,864,409)

Net realized and unrealized gains(losses) * 8,495,453 (5,431,148)

Gifts and other nonoperating revenue * 39,745,204 50,340,979

Loss on disposal of plant assets (693,328) (10,653,065)

Interest expense on capital related debt (34,975,294) (38,865,818)

Total nonoperating revenues 583,803,673 592,979,588

Increase (decrease) in net assets 185,328,104 (115,741,835)

Net assets at the beginning of year 1,245,530,916 1,361,272,751

Net assets at the end of year $1,430,859,020 $1,245,530,916

* Campus revenues totaled $1,255 million and $1,202 million for FY2013 and FY2012, respectively.

See accompanying notes to financial statements

4


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Reporting Entities

The State University of New York at Buffalo (UB) is comprised of various entities/components that are

closely affiliated with UB and therefore are included within the campus financial statements. Decisions

on which entities/components to include were based on one or more of the following criteria: (a) is the

University financially accountable for the organization, (b) does the organization receive or hold

economic resources that are significant to and for the direct benefit of the University or its constituents,

(c) is the University entitled to, or can otherwise access, a majority of the economic resources received or

held by the organization, (d) is the organization fiscally dependent upon the University.

Entities/components that meet these criteria and therefore are included in the financial statements are:

State Operating dollars from the approved New York State budget.

Income Fund Reimbursable (IFR)/State University Tuition Reimbursable Account (SUTRA) activity

which is comprised of self-supporting programs providing services for students and clients and for

administering other charged tuition and fees in excess of what is needed to support the state budget.

These accounts include fees for contract courses and summer sessions.

Construction fund dollars include State and The Research Foundation for SUNY assets that are

tracked in the SUNY system along with the depreciation associated with those assets. This also

includes State construction in progress and capitalized interest.

University at Buffalo Foundation (UBF) whose purpose is to support and promote the educational,

research and public service mission of the University.

The Research Foundation for SUNY (RF) is a private, nonprofit educational corporation that

administers externally funded contracts and grants for and on behalf of SUNY.

Auxiliary enterprises:

Campus Dining & Shops (CDS) whose purpose is to provide, for the benefit of the

campus community, dining services, retail services, vending services, campus ID cards

and catering services.

Dormitory Income Fund Reimbursable (DIFR), a self-supporting fund used to

administer dormitory (residence hall) rental fees and charges.

These unaudited financial statements are prepared from information received from the entities listed

above, which includes audited financial statements from UBF and CDS. The balance of the financial

numbers included in this statement is unaudited. Supplemental schedules include financial information

by funding entity.

2. Fiscal Years

The campus financial statements incorporate a twelve-month period for all entities. These entities

operate under different fiscal periods. The following schedule provides the fiscal year end of the entities

included in these financial statements:

Funding type Fiscal year end

State-held funds:

State Operating June 30th

IFR/SUTRA June 30th

Dormitory IFR June 30th

State University Construction Fund March 31st

University at Buffalo Foundation June 30th

The Research Foundation for SUNY June 30th

Campus Dining & Shops May 31st

5

3. Limitation of Consolidated Campus Financial Statements

Component parts of the campus financial statements have been audited by independent public accounting

firms; however, the consolidation of these statements has not. While an attempt has been made to

eliminate inter-entity transactions to the extent practical, it is possible that there exists some duplication

of financial information that does not materially distort the accuracy of the financial statements.

4. Use of Estimates

In preparing the financial statements certain information was not available either from the State

University Construction Fund or from SUNY System Administration. This required the use of estimates

in order to present the financial statements in conformity with U.S. generally accepted accounting

principles. Actual results could differ from those estimates and will be reflected in next year’s financial

statements.

5. Fringe Benefits

Employee fringe benefits (i.e., health insurance, worker’s compensation, retirement and post-retirement

benefits) are paid by the State on behalf of UB for employees funded through State Operating accounts.

Other State-held funding sources such as IFR and SUTRA along with non-State entities, as outlined in

Note 1, pay their own fringe benefits costs. The fringe benefits amount for UB employees paid by State

Operating funds is calculated by taking the fringe benefits rate which is determined by the State, and

applying it to total eligible personal service and temporary service costs incurred. These imputed costs

are included in the financial statements.

6. Cash and Cash Equivalents

Cash and cash equivalents represent University at Buffalo funds held in the short-term investment pool

(STIP) in the State Treasury or in local depositories by the various entities included in these statements.

The following schedule summarizes cash and cash equivalents by funding source:

2013 2012

State-held funds:

State Operating ($294,634) $878,747

IFR/SUTRA 70,601,194 55,410,708

Dormitory IFR 5,527,086 7,991,296

The Research Foundation for SUNY 70,532,901 58,405,294

University at Buffalo Foundation 29,757,211 29,484,700

Campus Dining & Shops 7,350,160 6,378,235

Total $183,473,918 $158,548,980

Campus Dining & Shops (CDS) has approximately $680,436 and $230,129 in their agency accounts for

the fiscal years ended June 30, 2013 and 2012, respectively. CDS is the custodian of these funds that

have been raised by various campus units that are associated with, but not controlled by, CDS. Such

funds are disbursed at the instructions of the particular campus unit that controls them.

The Research Foundation for SUNY (RF) has two pools of cash, unrestricted (non-sponsored) and

restricted (sponsored). Unrestricted cash represents the majority of the balance and consists of facilities

and administrative (indirect) cost recovery dollars that were not spent at the end of the fiscal year.

Restricted cash is the consolidated balance of payments to the University by sponsors in excess of

current expenditures for sponsored research projects.

6

A portion of the cash falls under the Governmental Accounting Standards Board (GASB) Statement No.

40, Deposit and Investment Risk Disclosure. This includes deposits held by UB that are not covered by

depository insurance and are (a) uncollateralized; (b) collateralized with securities held by a pledging

financial institution; or (c) collateralized with securities held by a pledging financial institution’s trust

department or agency. The table below summarizes the cash that falls under the GASB No. 40

disclosure rules. These are only for funds held by the State or CDS. Other agencies included in these

financial statements follow Financial Accounting Standards Board rules and are not included in this

analysis.

Category A Category B Category C Total

Cash and Cash Equivalents: $180,139 $6,767,152 $0 $6,947,291

7. Accounts and Notes Receivable

Accounts and notes receivable totaled $49,680,305 and $46,601,557 for the fiscal years ended June 30,

2013 and 2012, respectively. This was net of allowances for doubtful accounts of $11,695,810 and

$10,923,949 for the fiscal years ended June 30, 2013 and 2012, respectively. Depending upon the

funding source these receivables occurred for a number of different reasons.

State and auxiliary enterprises receivables occur due to student billings for tuition, fees, and room and

board payments. Research receivables arise from sponsored awards where the expenditures exceed the

cash received whether the difference is billed to the sponsor or not billed yet.

The only notes receivable are student loans awarded from the former State-held endowment fund. These

notes have various interest rates and repayment terms.

Certain entities carry an allowance for doubtful accounts on their balance sheet. This amount is

calculated in different ways depending on the funding source. Each entity writes off balances during the

year as they are deemed uncollectible which, in most cases, is based upon the aging of the receivables.

8. Other Receivables

The majority of other receivables consist of contributions receivable within UBF. These contributions

represent unconditional promises to give. An allowance of $200,000 for uncollectible contributions is

estimated for these receivables which are summarized below:

Contributions Receivable: 2013 2012

Unconditional promises expected to be collected in:

Less than one year $27,154,975 $13,433,985

One year to five years 8,033,039 17,363,287

Greater than five years 1,450,734 985,524

36,638,748 31,782,796

Less:

Discount to present value (570,114) (636,399)

Allowance for uncollectible contributions receivable (250,000) (200,000)

$35,818,634 $30,946,397

As of June 30, 2013, UBF has also received bequest intentions and revocable trusts that management

estimates will approximate $59 million. These intentions and conditional promises to give are not

recognized as assets in the accompanying consolidated financial statements. Amounts received under

these conditional promises to give will generally be restricted for specific purposes stipulated by the

donors, primarily endowments for faculty support, scholarships, and general operating support of

particular departments and divisions of the University.

7

UB has committed Research Foundation (RF) funds to be used for a term loan and extension of credit to

UB Associates Inc. (UBA) with the following terms:

Term loan – The loan is unsecured and in the amount of $11 million. It was repaid via interest until

May 2012 and then principal and interest from June 2012 through May 2017. The loan’s outstanding

balance was $8.8 million as of June 30, 2013.

Extension of credit – The extension of credit is unsecured and is in the amount of $2.9 million. Its

outstanding balance as of June 30, 2013 was $2.32 million.

9. Endowment and Other Investments

Investments of UB are recorded at fair value with the majority of them being long-term. Investment

income is reported net of investment fees. Realized and unrealized gains and losses are reflected in the

Statement of Revenues, Expenses and Changes in Net Assets.

CDS invests primarily in fixed income securities, which are comprised of income funds. These income

funds are mutual funds, whose purpose is to provide income from investments. The composition of these

investments (excluding cash) is as follows:

June 30, 2013 June 30, 2012

CDS UBF CDS UBF

Fixed income securities $3,720,488 $118,421,423 $2,246,402 $123,552,568

Domestic equity 162,837,691 147,268,119

International equity 769,046 158,808,564 1,785,797 140,955,707

Alternative investments:

Real assets 66,492,002 53,026,427

Venture capital/private equity partnerships 79,821,641 82,292,568

Hedge funds and funds of funds 141,662,316 125,285,848

Other 2,474,128 2,447,012

$4,489,534 $730,517,765 $4,032,199 $674,828,249

The Research Foundation maintains a diverse investment portfolio and with respect to debt instruments,

has a policy of investing primarily in high quality securities. Investments are held with the investment

custodian in the Research Foundation’s name and could not be broken out by campus for these

statements. Therefore, the Research Foundation’s investment balances could not be shown in the asset

section nor could the unrealized or realized gains be recorded in the Statement of Revenues and

Expenses.

10. Inventory

The composition of inventory depends upon the entity being examined. For the entities covered within

these financial statements, inventory consists of food, beverage, store inventory, dental supplies and

chemicals. Inventory is stated at lower of cost (first-in, first-out method) or market.

11. Property, Plant and Equipment

Fixed assets are either stated at historical cost if purchased or at fair market value at date of receipt if

acquired by gift. Fixed assets are shown net of accumulated depreciation of $893,284,502 and

$863,289,268 as of June 30, 2013 and 2012, respectively. The majority of the University depreciates its

assets using the straight-line method over the assets estimated useful life. In general, the buildings and

components are depreciated between 25-50 years, capital equipment, furniture, and fixtures lives range

from 4 to 15 years and library acquisitions are depreciated over 10 years.

8

There continues to be a one year lag between the Property, Plant and Equipment amounts recorded here

in these statements due to the availability of the SUNY figures for our University. SUNY’s numbers are

finalized in the spring of the following year, while the numbers used for these statements are compiled in

the fall, after the fiscal year closes (fiscal year 2012-13 numbers are available in March 2014, so fiscal

year 2011-12 numbers are used instead).

12. Other Assets

Fine art collections are included within the other assets reported in the financial statements and are

valued at $10,025,754 and $9,854,042 for the fiscal years ended June 30, 2013 and 2012, respectively.

These assets make up the majority of the University’s other assets.

13. Long-term liabilities

The University at Buffalo and its affiliated entities has entered into several debt obligations to finance

various capital facilities or large equipment purchases. Total long-term and short-term obligations are

summarized below:

2013 2012

Campus Dining & Shops (CDS)

Unsecured note payable related to a related party in annual

principal payments and semi-annual interest payments totaling

$951,091 per year, based on a fixed interest rate of 4.81% through

June 30, 2027. $9,529,910 -

Note payable to a bank in monthly installments of principal and

interest of $53,454, based on a fixed interest rate of 2.62%

through April 2017. This note is secured by investments with a

net book value of $2,906,797. 2,383,005 $2,952,878

University at Buffalo Foundation (UBF )

Village of Kenmore Housing Authority bonds payable in monthly

installments of $47,516 through January 2028, including interest

at 4.95%. (Flickinger Project) 5,886,825 6,154,224

Town of Amherst Industrial Development Agency bonds payable

in annual principal installments that escalate through maturity in

August 2031, plus interest ranging from 4.30% to 5.25% adjusted

annually, net of discount of $0 in 2013 and $72,184 in 2012. (Flint

Village Projects) - 22,142,816

Town of Amherst Industrial Development Agency bonds payable

in annual principal installments that escalate through maturity in

August 2032, plus interest ranging from 3.00% to 5.00% adjusted

annually, net of discount of $0 in 2013 and $115,343 in 2012.

(Creekside Village Projects) - 11,899,657

9

University at Buffalo Foundation (UBF ) continued 2013 2012

Town of Amherst Development Corporation bonds payable in

annual principal installments that escalate through maturity in

October 2045, plus interest ranging from 2.25% to 5.00% adjusted

annually, net of discount of $25,411 in 2013 and $13,438 in 2012.

(Greiner Hall Project and Hadley Village Refunding) 79,909,589 81,781,563


annual principal installments that escalate through maturity in

October 2035 plus variable rate of interest. Interest rates ranged

from 0.08% to 0.23% and 0.04% to 0.28% for the years ended

June 30, 2013 and 2012, respectively. (South Lake Village) 23,035,000 23,510,000


monthly principal installments that escalate through maturity in

August 2042 plus variable rate of interest. Interest rates ranged

from 1.53% to 1.56% for the year ended June 30, 2013 and 1.56%

from the date of issue through June 30, 2012. (Flint Village and

Creekside Village Refunding) 31,805,000 32,465,000

Operating Line of Credit payable on demand and bearing interest

at 1.5% below the bank’s prime rate, (1.75% at June 30, 2013 and

June 30, 2012). 25,000,000 25,000,000

State

NYPA Phase I Chillers loan payable in monthly installments of

$16,100 through maturity June 2016. Variable interest rate, 0.86%

for 2012-13 and 0.88% for 2011-12. 560,562 749,499

NYPA Phase II HVAC and outdoor lighting loan payable in

monthly installments of $28,245 through maturity January 2022.

Variable interest rate, 0.86% for 2012-13 and 0.88% in 2011-12. 2,933,898 3,144,879

Dorm Rehab projects – various dormitory projects through

Dormitory Authority of the State of New York (DASNY) bond or

revolving loans with the Dormitory Authority. Maturity of these

borrowings end in June 2031 with varying interest rates. 49,014,795 53,166,926

Total debt obligations $230,058,584 $262,967,442

Current portion of long-term debt (10,136,605) (8,869,862)

Long-term debt $219,921,979 $254,097,580

Campus Dining and Shops has available a $1,000,000 unsecured bank line of credit, with interest at the

prime rate minus 0.50%. There are no amounts outstanding at May 31, 2013 or 2012. The Industrial

Development Agency bonds, which had a balance of $3,350,000 as of May 31, 2011, were paid in full

during the 2011-12 fiscal year.

In June 2012, UBFFSH issued $32,465,000 Town of Amherst Development Corporation Bonds (Flint

Village and Creekside Village). These bonds were issued to provide funds for the refunding of the

outstanding principal of the original bonds used to finance the respective projects including funds needed

for the costs incidental to their issuance.

All debt covenants were compiled for all agencies having debt.

10

14. Other Post-Employment Benefits (OPEB)

SUNY, in compliance with GASB 45, records their annual liability and expense for Other Post-

Employment Benefits (OPEB) on their financial statements. These benefits, as defined by GASB 45,

include “postemployment healthcare, as well as other forms of postemployment benefits (for example,

life insurance) when provided separately from a pension plan.”

Since GASB 45 calls for disclosure and recognition of these benefits and there is a large portion of

SUNY’s OPEB costs that are unfunded by the State, the University at Buffalo’s portion of the liability

for these benefits has been recorded within these financial statements. The annual amounts of the

unfunded actuarial accrued liability (UAAL) are recorded in other long-term liabilities with the offset

being booked to expenses. The expense amount was allocated to the functional expense classifications

consistent with the fringe benefit rate applied to personal service costs. The OPEB liability amounted to

$55,133,725 for 2012-13 and $57,196,478 for 2011-12. The amount attributable to the University is

obtained from SUNY and is based on the University’s share of personal service costs.

The accumulated liability for the University at Buffalo as of June 30, 2013 was $389,979,721.

15. Commitments

UB and its affiliated entities committed to numerous operating leases covering real property and

equipment. Rental expenditures reported for the years ended June 30, 2013 and 2012 under such

operating leases were approximately $2,350,561 and $1,915,822 respectively. The following is a

summary of rental commitments under non-cancelable real property and equipment leases with terms

exceeding one year:

Year ending

June 30, Amount

2014 $1,610,214

2015 1,147,044

2016 1,149,833

2017 382,050

2018 208,843

2019-23 1,128,502

Total $5,626,486

The above schedule does not include The Research Foundation for SUNY. Their rental payments

amounted to $276,909 and $360,818 for the fiscal years ended June 30, 2013 and 2012, respectively.

Any amounts paid between State and UBF have been eliminated.

11

16. Subsequent Events

The University entered into a financial arrangement (dated November 5, 2013) with the State University

Construction Fund (SUCF) to fund the construction of the new School of Medicine and Biomedical

Sciences building in downtown Buffalo. The estimated total cost of the project is $375 million and

funding will be derived from the following categories:

Source State Campus

Existing Campus Appropriations $50,000,000

SUNY Match 15,000,000

Urban Development Corp. Funds 20,000,000

Debt Service 215,000,000

UB School of Medicine Funds $25,000,000

UB Philanthropy 50,000,000

Totals $300,000,000 $75,000,000

12

State UB Research Auxiliary

O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total

Assets

Current assets:

Cash and cash equivalents ($294) $70,601 $29,757 $70,533 $12,877 $183,474

Accounts and notes receivable, net 18,792 1,305 3,464 22,916 3,203 49,680

Other receivables 0 0 35,819 0 495 36,314

Short-term investments 0 0 376,918 0 3,222 380,140

Inventory 1,807 459 0 0 957 3,223

Intercompany receivables 2,349 (30,369) (10,909) 15,829 23,100 0

Prepaid expenses 1,163 0 0 0 1,051 2,214

Total current assets 23,817 41,996 435,049 109,278 44,905 655,045

Noncurrent assets:

Property, plant and equipment, net 954,472 53,716 155,991 3,469 13,466 1,181,114

Long-term investments 0 0 355,484 0 1,268 356,752

Other assets 77 0 9,311 0 0 9,388

Total noncurrent assets 954,549 53,716 520,786 3,469 14,734 1,547,254

Total assets $978,366 $95,712 $955,835 $112,747 $59,639 $2,202,299



Accounts payable $6,215 $0 $6,838 $0 $433 $13,486

Accrued expenses 0 0 5,128 2,665 1,286 9,079

Current portion of long-term debt 5,678 0 3,381 0 1,078 10,137

Deferred revenue 0 0 504 0 326 830

Other current liabilit ies 0 0 0 0 997 997

Total current liabilities 11,893 0 15,851 2,665 4,120 34,529


Long-term debt 46,831 0 162,256 0 10,835 219,922

Other long-term liabilit ies 467,039 19,299 30,651 0 0 516,989

Total noncurrent liabilities 513,870 19,299 192,907 0 10,835 736,911

Total liabilities 525,763 19,299 208,758 2,665 14,955 771,440

Net Assets:

Unrestricted (55,134) 0 16,110 0 37,222 (1,802)

Restricted - nonexpendable 0 0 195,496 0 0 195,496

Restricted - expendable 507,737 76,413 535,471 110,082 7,462 1,237,165

Total net assets 452,603 76,413 747,077 110,082 44,684 1,430,859

Total liabilities and net assets $978,366 $95,712 $955,835 $112,747 $59,639 $2,202,299

State University of New York at Buffalo

Assets, Liabilities and Net Assets by Entity

as of June 30, 2013

(In thousands)

13



Assets

Current assets:

Cash and cash equivalents $879 $55,411 $29,485 $58,405 $14,370 $158,550

Accounts and notes receivable, net 18,872 1,428 3,884 19,309 3,109 46,602

Other receivables 0 0 30,946 0 1,407 32,353

Short-term investments 0 0 364,677 0 1,659 366,336

Inventory 1,965 389 0 0 810 3,164

Intercompany receivables 1,111 (22,834) (7,714) 9,817 19,620 0

Prepaid expenses 1,193 0 0 0 81 1,274

Total current assets 24,020 34,394 421,278 87,531 41,056 608,279

Noncurrent assets:

Property, plant and equipment, net 840,587 45,169 153,673 4,152 2,724 1,046,305

Long-term investments 0 0 342,616 0 2,373 344,989

Other assets 77 0 10,248 0 0 10,325

Total noncurrent assets 840,664 45,169 506,537 4,152 5,097 1,401,619

Total assets $864,684 $79,563 $927,815 $91,683 $46,153 $2,009,898



Accounts payable $7,468 $0 $12,629 $0 $1,731 $21,828

Accrued expenses 0 0 5,904 3,408 1,266 10,578

Current portion of long-term debt 5,038 0 3,262 0 570 8,870

Deferred revenue 0 0 728 0 239 967

Other current liabilit ies 0 0 0 0 307 307

Total current liabilities 12,506 0 22,523 3,408 4,113 42,550


Long-term debt 52,024 0 199,691 0 2,383 254,098

Other long-term liabilit ies 410,787 20,417 36,515 0 0 467,719

Total noncurrent liabilities 462,811 20,417 236,206 0 2,383 721,817

Total liabilities 475,317 20,417 258,729 3,408 6,496 764,367

Net Assets:

Unrestricted (334,846) 0 10,385 0 30,970 (293,491)

Restricted - nonexpendable 0 0 161,503 0 0 161,503

Restricted - expendable 724,213 59,146 497,198 88,275 8,687 1,377,519

Total net assets 389,367 59,146 669,086 88,275 39,657 1,245,531

Total liabilities and net assets $864,684 $79,563 $927,815 $91,683 $46,153 $2,009,898


Assets, Liabilities and Net Assets by Entity

as of June 30, 2012

(In thousands)

14



Revenues:

Tuition and fees, net $167,957 $44,773 $6,876 $0 $0 $219,606

State appropriations 493,813 0 0 0 0 493,813

Grants and contracts 45,529 4,105 0 156,946 0 206,580

Private support and other 11,849 39,299 48,709 9,034 5,591 114,482

Endowment and investment income 100 0 85,305 0 509 85,914

Auxiliary enterprises 0 13,325 28,086 0 64,282 105,693

Hospitals and clinical revenue 0 3,616 14,509 0 0 18,125

Other 11,214 0 0 0 0 11,214

Total revenues 730,462 105,118 183,485 165,980 70,382 1,255,427

Expenses by function:

Instruction 307,793 38,825 51,645 17,972 0 416,235

Research 21,950 10,390 0 93,502 0 125,842

Public service 3,792 904 0 4,599 0 9,295

Academic support 69,419 6,311 0 201 0 75,931

Student services 17,950 17,014 0 466 0 35,430

Institutional support 74,376 14,189 24,514 25,068 0 138,147

Operation and maintenance of plant 70,688 916 0 554 0 72,158

Depreciation 24,352 0 0 578 1,104 26,034

Scholarships and fellowships 23,810 (17,122) 5,814 1,084 0 13,586

Hospitals and clinics 4,491 2,958 0 0 0 7,449

Auxiliary enterprises 13,087 13,466 23,522 0 64,251 114,326

Interest expense 34,975 0 0 0 34,975

Other expenses 543 0 0 148 0 691

Total expenses 667,226 87,851 105,495 144,172 65,355 1,070,099

Expenses by type:

Salaries 337,555 10,788 32,221 64,324 19,402 464,290

Employee fringe benefits 227,122 11,465 11,952 21,959 8,432 280,930

Supplies (18,496) 36,515 6,487 13,410 13,866 51,782

Travel 2,085 4,877 6,163 3,747 (105) 16,767

Contractual services 37,319 15,249 11,387 29,705 5,711 99,371

Insurance and professional fees 0 0 1,636 0 450 2,086

Rent, utilit ies and lease 16,325 0 1,939 0 4,258 22,522

Depreciation 24,352 0 8,119 578 1,104 34,153

Equipment, repairs and maintenance 5,968 5,570 303 6,005 9,334 27,180

Management fees and subscriptions 0 0 2,668 4,567 0 7,235

Interest expense 34,975 0 6,532 0 339 41,846

Other expenses 21 3,387 16,088 (123) 2,564 21,937

Total expenses 667,226 87,851 105,495 144,172 65,355 1,070,099

Increase (decrease) net assets $63,236 $17,267 $77,990 $21,808 $5,027 $185,328


Revenues and Expenses by Entity

Fiscal Year Ended June 30, 2013

(In thousands)

15



Revenues:

Tuition and fees, net $154,809 $33,266 $5,436 $0 $0 $193,511

State appropriations 600,453 0 0 0 0 600,453

Grants and contracts 43,848 4,399 0 150,299 0 198,546

Private support and other 2,332 27,126 58,608 2,468 5,245 95,779

Endowment and investment income 200 0 (8,516) 0 20 (8,296)

Auxiliary enterprises 250 7,972 29,686 0 60,487 98,395

Hospitals and clinical revenue 0 3,869 12,033 0 0 15,902

Other 8,020 0 0 0 0 8,020

Total revenues 809,912 76,632 97,247 152,767 65,752 1,202,310

Expenses by function:

Instruction 447,085 43,050 51,775 13,920 0 555,830

Research 32,886 5,316 0 101,850 0 140,052

Public service 5,344 17,354 0 5,095 0 27,793

Academic support 66,703 6,897 0 379 0 73,979

Student services 29,965 13,944 0 735 0 44,644

Institutional support 108,799 13,679 29,564 23,061 0 175,103

Operation and maintenance of plant 93,769 (6,294) 0 777 0 88,252

Depreciation 25,263 0 0 859 624 26,746

Scholarships and fellowships 22,223 (12,508) 5,148 1,040 0 15,903

Hospitals and clinics 6,983 2,909 0 0 0 9,892

Auxiliary enterprises 35,568 3,266 21,577 0 53,980 114,391

Interest expense 38,866 0 0 0 0 38,866

Other expenses 2,377 (3) (4,000) 8,227 0 6,601

Total expenses 915,831 87,610 104,064 155,943 54,604 1,318,052

Expenses by type:

Salaries 330,833 10,386 33,903 68,176 18,776 462,074

Employee fringe benefits 497,774 9,504 11,487 22,873 8,479 550,117

Supplies (34,101) 42,741 8,298 13,062 11,718 41,718

Travel 2,811 3,368 6,142 3,826 (61) 16,086

Contractual services 34,053 14,969 13,749 27,241 5,692 95,704

Insurance and professional fees 0 0 2,116 0 397 2,513

Rent, utilit ies and lease 14,657 0 2,458 0 2,320 19,435

Depreciation 25,263 0 5,894 859 624 32,640

Equipment, repairs and maintenance 5,723 3,559 203 16,775 6,365 32,625

Management fees and subscriptions 0 0 312 4,438 0 4,750

Interest expense 38,866 0 6,811 0 156 45,833

Other expenses (48) 3,083 12,691 (1,307) 138 14,557

Total expenses 915,831 87,610 104,064 155,943 54,604 1,318,052

Increase (decrease) net assets ($105,919) ($10,978) ($6,817) ($3,176) $11,148 ($115,742)


Revenues and Expenses by Entity

Fiscal Year Ended June 30, 2012

(In thousands)

Prepared by Financial Services, a division of University Business Services

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