ML20082L563

Forwards Financial Rept for Yrs Ending June 1982 & June 1983

ML20082L563
Person / Time
Site:	Rensselaer Polytechnic Institute
Issue date:	11/18/1983
From:	Harris D, Wicks F RENSSELAER POLYTECHNIC INSTITUTE, TROY, NY
To:	Rozier Carter Office of Nuclear Reactor Regulation
References
NUDOCS 8312050528
Download: ML20082L563 (17)

Text

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3 Department of Nuclear Engineering Rensselaer Polytechnic Institute Troy, New York 12181 November 18, 1983 Mr. Robert Carter Division of Licensing U. S. Nuclear Regulatory Commission Washington, D. C.

20555 Ref erenc e: Docket No. '3-225

Dear Mr. Carter:

The enclosed most recently available financial report is in response to our November 16, 1983 phone conversation on your need for additional financial inf ormation.

Sincercly, 4

/

1. w WA M.).

Dr. Frank Wicks D[. Q6nald R. Harris Facility Supervisor Facility Director FW:mb

Enclosure:

Rensselaer Polytechnic Institute report on Examination of Financial Statements for years ended June 30, 1983 and 1982 k

[n 0hr 8312050528 831118 PDR ADOCK 05000225 I

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RENSSELAER POLYTECHNIC INSTITUTE 1

REPORT ON EXAMINATION OF FINANCIAL STATEMENTS i

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i for the Years Ended June 30, 1983 and 1982 i

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- - - - + - - - - - - - ~ ~...,.. _ _. - _ _.

I Coo 3ers

&Ly3 rand Certified Pubhc Accountants l

~ ~ * " " ~ " " " "

Coo 3ers

&Ly3 rand Board of Trustees Rensselaer Polytechnic Institute Troy, New York We have examined the balance sheet of RENSSELAER POLYTECHNIC INSTITUTE as of June 30,1983 and 1982, and the related statements of changes in fund balances and current funds revenues, expenditures, and other changes for the years then ended. Our examinations were made in accordance with generally accepted auditing l

standards and, accordingly, included such tests of the accounting records and l

such other auditing procedures as we considered necessary in the circumstances.

l Other auditors previously examined and reported upon the financial statements of l

the Institute for the year ended June 30, 1981, which cor*nsed statements are presented for comparative purposes only.

In our opinion, the financial statements referred to above present fairly the financial position of RENSSELAER POLYIECHNIC INSTITUTE at June 30, 1983 and 1982, and the changes in fund balances and the current funds revenues, expendi-l tures, and other changes for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

Albany, New York August 18, 1983 j

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RENSSELAER POLYTECHNIC INSTITUTE - Balance Sheet at June 30, 1983 (in thousands), with comp lo_tal of All Funds Current Furi 1982 1983 Unrestricted Designated ASSETS Cash 388 129 96 Investments, at cost 106,273 112,775 3,232 73 Accounts receivable and loans to students 21,093 22,054 1,507 Inventories 598 668 668 Prepaid expenses and other assets 338 332 332 Deposits with bond trustees 9,547 18,145 Land, buildings and equipment 126,419 141,429 Due from (to) other funds 1,730 3,71E Total Assets

$264,656

$315,532

$ 7,565

$ 3,791 LIABILITIES Accounts payable and accrued expenses

$ 3,951

$ 3,483

$ 3,477 Deposits 768 804 804 Deferred revanues 1,857 2,167 2,167 Long-term debt 44.101 46,341 Total Liabilities 50,677 52,795 6.448 FUND BALANCES Current funds 7,584 10,707 1,117

$ 3,791 Federal loan programs 15,530 16,661 Other loan programs 645 938 Endowment 51,053 58,227 Quasi-endowment 40,922 43,838 Life income 4,115 4,941 Plant funds:

Unexpended 3,758 1,224 Renewals and replacements 3,495 2,010 Retirement of indebtedness 6,473 6,611 Investment in plant 80,404 117,580 Total Fund Balances 213,979 262.737 1.117 3,791 Total Liabilities and l

Fund Baiences

$264,656

$315.532

$ 7,565

$ 3.791 The acccmpanying notes are an integral part of the fir incial statements.

2 a

4 l

i

?Jrz.tiva 1982 totals Endowment d"

Loan and Life Plant Fundt Restricted Funds Income Funds Unexpended Expended 1

32 1,818 258

$107,106 288 2,942 17,062 543 8,099

$ 30,046 141,429 1,038 247

(

94) 915

(

7,554)

$ 5,799

$ 17,599

$107,012

$ 9,845

$163,921 6

$ 46,341 6

46,341

$ 5,799

$ 16,661 938 58,227 Meo Xvailable Un Aperture Card

$ 1,224 2,010 6,611 117,580 5.799 17,599 107,006 9,845 117.580

$ 5.799

$ 17,599

$107,012

$ 9,845

$163,921

?RC A3Er~JRE CARJ 8812050528-01 i

1 RENSSELAER POLYTECHNIC INSTITUTE - Statement of Changes in Fund Balances for the year ended I

Total of All Funds Current Fune 1982 1983 Unrestricted Designated REVENUES AND OiHER ADDITIONS Student tuition and fees

$ 35,527

$ 42,271

$ 41,672 415 Auxiliary enterprises 10,965 12,552 12,552 Gifts, grants and contracts 34,425 62,809 11,356 23 Income from investments 11,425 11,505 8,094 1E Realized gain on investments 3,019 9,829 Interest on loans 242 287 Other 2,009 3,214 1,382 732 TOTAL REVENUES AND OTHER ADDITIONS 97.612 142,467 75,056 1,180 EXPENDITURES, MANDATORY TRANSFERS AND OTHER DEDUCTIONS Educational and general 66,289 77,191 57,517 697 Auxiliary enterprises 9,511 11,407 11,300 166 Principal ($2,267 in 1983 and

$2,137 in 1982) and interest 2,530 2,303 Plant improvements 1,101 1,723 Life income distributions 537 54 6 Disposals 893 383 Other 1,921 156 Mandatory transfers:

Debt service 3,806 Matching grants 606 TOTAL EXPENDITURES, MANDATORY L

TRANSFERS AND OTHER DEDUCTIONS 82,782 93,709 73,229 863 OTHER TRANSFERE To unexpended pleat

(

934)

To renewals and replacements

(

457)

Other

(

423) 3,474 TOTAL OTHER TRANSFERS

(

1,814) 3,474 NET INFREASE (DECREASE) 14,830 48,758 13 3,791 FUND BALANCE AT BEGINNING OF YEAR 199,149 213,979 1,104 FUND BALANCE AT END OF YEAR

$213,979

$262,737

$ 1.117

$ 3,791 The accompanying notes are an integral part of the financial statements.

3

Juna 30, 1983 (in thousands), with comparative 1982 totals Endowment 3

Loan and Life Plant Funds Restricted Funds Income Funds Unexpendeo Expended 184 18,414

$ 1,176

$ 1,648

$ 1,693

$ 28,499 1,795 8

688 801 109 9,829 287 513 334 253 20,906 1,47i 12,499 2,747 28,608 21,257

(

2,280)

(

59) 4,570

(

2,267) 6,068

(

4,345) 546 383 156

(

3,806)

(

497) (

109) 20,760 47 546 6,832

(

8,568) 934 457

(

827)

(

1,037)

(

1,187)

(

827)

(

1,037) 204 0

~

(

681) 1,424 10,916

(

3,881) 37,176 1

80,404,[\\

l 6,480 16,175 96,090 13,726

$ 5,799

$ 17,599

$107,006 9,845_

$117,580 h [_(

- }

Also Available On Aperture Card 93120505.28-02.-

RENSSELAER POLYTECHNIC INSTITUTE - Statement of Current Funds Revenues, Expenditures, and Other Changes for the Year Ended June 30, 1983 (in thousands),

with comparative 1982 totals Unrestricted Designated Restricted REVENUES Educational and general:

Student tuition and fees

$41,672 5

415 184 i

State appropriations 2,234 Federal and State grants and contracts 5,706 9,446 Private gifts, grants and contracts 3,416 23 8,968 Endowment income 6,371 1,795 Current fund investment income i,723 10 Sales and services of educational activities 524 122 206 Expired life income contracts Other sources 858 610 307 62,504 1,180 20,906 Receipts less than (in excess of) amounts recognized as revenue 681 Total educational and general 62,504 1,180 21,587 Auxiliary enterprises:

g Housing and food service 7,634 Fieldhouse 270 Rensselaer Union 3,503 Athletics 404 Health service 741 Total auxiliary enterprises 12,552 TOTAL REVENUES 75,056 1,180 21,587 EXPENDITURES AND MANDATORY TRANSFERS Educational and general Expenditures:

Instruction 27,415 119 564 Sponsored research 11,599 Departmental and interdepartmental research 364 318 4,841 Academic support 5,407 55 474 Student services 2,289 Institutional support 10,661 81 24 Operation and maintenance of plant 5,792 Scholarships and fellowships 5,589 124 3,755 Total educational and general expenditures 57,517 697 21,257

'Also Xvailable Os Aperture Card The accompanying notes are an integral part of the financial statements.

4 8312050528-03

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Total 1983 1982

$42,271

$35,527 2,234 2,154 15,152 14,647 12,407 9,524 8,166 8,566 1,733 1,326 852 758 10 1,775 707 84,590 73,219 681

(

355) 85.271 72,864 7,634 6,703 270 236 3,503 3,122 404 388 741 516 12,552 10,965 97,823 83,829 28,098 24,574 11,599 11,036 5,523 3,520 5,936 5,195 2,289 1,929 10,766 8,515 5,792 5,318 9,468 8,268 79,471 68,355 3RC A3ER~

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RENSSELAER POLYTECHNIC INSTITUTE - Statement of Current Funds Revenues, Expenditures, and Other Char.ges for the Year Ended June 30, 1983 (in thousands),

with comparative 1982 totals (Continued)

Unrestricted Designated Restricted EXPENDITURES AND MANDATORY TRANSFERS

-(continued)

Mandatory transfers:

Debt service 2,846 Current restricted fund matching grants 497

(

497)

Loan fund matching grant 109 Total educational and general 60,969 697 20,760 Auxiliary enterprises Expenditures:

Housing a.d food service 6,487 92 Fieldhouse 414 Rensselaer Union 3,314 59 Athletics 386 5

Health service 699 10 Total auxiliary enterprise expenditures 11,300 166 Mandatory transfers:

Debt service 960 Total auxiliary enterprises 12,260 166 TOTAL EXPENDITURES AND MANDATORY TRANSFERS 73,229 863 20,760 OTHER TRANSFERS To unexpended plant 934 To renewals and replacements 457 Other 423

( 3,474) 827 TOTAL OTHER TRANSFERS 1,814

( 3,474) 827 TOTAL EXPENDITURES AND TRANSFERS 75,043

( 2,611) 21,587

. Receipts (less than) in excess of amounto recognized as revenue

(

681)

NET INCREASE (DECREASE)

IN FUND BALANCES 13

$ 3,791

($

681)

Also Available Un Aperture Card The accompanying notes are an integral part of the financial statements.

5 8 312 0 5 0 5.2 8 -Of

l Total 1983 1982 2,846 2,810 109 62 82,426 71,227 6,579 5,334 414 404 3,373 2,872 391 386 709 577 11,466 9,573 960 945 12,426 10,518 94,852 81,745 934 2,02v 457 1,688

( 2,224) (

1,663)

(

833) 2,061 94,019 83,806

(

681) 355 5 3,123 378 PRC A3ERTUlE CA1J

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RENSSELAER POLYTECHNIC INSTITUTE - Balance Sheet at June 30, 1982 (in thousands),

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Total of All Funds Current r 1981 1982 Unrestricted j

ASSETS i

Cash 273 388 254

.j Investments, at cost 97,678 106,273 7,652

}

Accounts receivable and loans to students 20,123 21,093 1,327 Inventories 743 598 598 1

Prepaid expenses and other assets 515 338 338 l

Deposits with bond trustees 9,358 9,547 Land, buildings and equipment 122,134 126,419 3

~,526) j Due from (to) other funds

(

2 Total Assets

$250,824

$264,656

$ 7,643 j

I LIABILITIES AND FUND BALANCES

)

Accounts payable and accrued i

expenses

$ 2,603

$ 3,951

$ 3,914

{

Deposits 398 768 768 j

Deferred revenues 3,148 1,857 1,857 l

Long-term debt 45,526 44,101

]j Total Liabilities 51,675 50,677 6,539 j

FUND BALANCES

{

Current funds 7,206 7,584 1,104 Federal loan programs 15,243.

15,530 j

Other loan programs 807 645 i

Endowment 45,878 51,053 1

Quasi-endowment 41,298 40,922 i

Life income 3,786 4,115 Plant funds:

Unexpended 1,463 3,758 Renewals and replacements 2,183 3,495 Retirement of indebtedness 6,605 6,473 Investment in plant 74,680 80,404 Total Fund Balances 199,149 213,979 1,104 i

i Total Liabilities and f

Fund Balances

$250,824

$264,656 7,643

' L i

.1

't The accompanying notes are an integral part of the financial statements, i

6 11 a

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i fithcomparative1981 totals Endowment 3

jnds and Life Plant Funds estricted Loan Funds Income Funds Unexpended Expended E

13 23 98 1,426 55 96,759 381 3,826 15,889 51 0,464

$ 1,083 126,419 1.215 208

(

730) 4,922

(

3,089)

B 6,480

$ 16,175

$ 96,127

$ 13,818

$124,413 37 92

$ 44,009 37 92 44,009

$ 6,480

$ 15,530 645 51,053 40,922 zibo Available Uri 4,115

,\\perture Car'd '

3,758 3,495 6,473 80,404 6,480 16,175 96,090 13,726 80,404

$ 6,480

$ 16.175

$ 96,127

$ 13.818

$124,413 3RC ADE'-l k-

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RENSSELAER POLYTECHNIC INSTITUTE - Statement of Changes in Fund Balances for the ye 6

Total of All Funds Current 1'381 1962 Unrestricted REVENUES AND OTHER ADDITIONS Student tuition and fees

$ 29,486

$ 35,527

$ 34,989 Auxiliary enterprises 9,727 10,965 10,965 Gifts, grants and contracts 31,798 34,425 9,912 Income from investments 8,582 11,425 8,545 Realized gain on investments 7,743 3,019 Interest on loans 237 242 Other 1,873 2,009 963 TOTAL REVENUES AND OTHER ADDITIONS 89,446 97,612 65,374 EXPENDITURES, MANDATORY TR ANSFERS AND OTHER DEDUCTIONS Educational and general 57,919 66,289 49,061 Auxiliary enterprises 8,695 9,511 9,573 Principal ($2,137 in 1982 and

$1,966 in 1981) and interest 2,615 2,530 Plant improvements 119 1,101 Life income distributions 294 537 Disposals 893 Other 299 1,921 Mandatory transfers:

Debt services 3,755 Matching grants 922 TOTAL EXPENDITURES, MANDATORY TRANSFERS AND OTHER DEDUCTIONS 69,941 82,782 63,311 OTHER TRANSFERS To unexpended plant

(

1,924)

To renewals and replacements

(

1,688)

Other 1,572 TOTAL OTHER TRANSFERS

(

2,040)

NET INCREASE 19,505 14,830 23 FUND PALANCE AT BEGINNING OF YEAR 179,644 199,149 1,081 FUND BALANCE AT END OF YEAR

$199,149

$213,979

$ 1,104 The eccompanying notes are an intearal part of the financial statements.

.I

i r ended June 30, 1982 (in thousands)9 with comparative 1981 totals i

Endowment

-unds and Life Plant Funds Hestricted Loan Funds Income Funds Unexpended Expended 538 16,413 554

$ 2,845

$ 1,536

$ 3,165 1g347 4

846 537 146 3,019 242 512 534 18,810 800 6.710 2,607 3,311 19,294

(

2,066)

(

62) 4,667

(

2,137) 1,775

(

674) 537 893 785 105 1,031

(

3,755)

(

860) (

62) 18 434 723 642 2.687

(

3,015) 9

(

112) 2,036

(

43) 1,731 134 48

(

940)

(

212)

(

602)

(

21) 48

(

940) 3,555

(

602) 355 125 5,128 3,475 5,724 AISO Available On 6 125 16,050 90,962 10,251 74.680 Aperture Card 9

$ 6 480

$ 16.175

$ 96,090

$ 13,726

$ 80.404 9

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RENSSELAER POLYTECHNIC INSTITUTE - Statement of Current Funds Revenues, Expenditures, and Other Changes for the Year Ended June 30, 1982 (in thousands),

with comparative 1981 totals Total Unrestricted Restricted 19'82 1981 REVENUES Educational and general:

Student tuition and fees

$34,989 538

$35,527

$29,486 State appropriations 2,154 2,154 2,061 Federal and State grants and contracts 5,232 9,415 14,647 13,874 Private gifts, grants and contracts 2,526 6,998 9,524 9,826 Endowment income 7,219 1,347 8,566 6,234 Current fund investment income 1,326 1,326 1,169 Sales and services of educational activities 401 357 758 284 Expired life income contracts 10 10 8

Other sources 562 145 707 907 54,409 18,810 73,219 63,849 Less receipts in excess of amounts recognized as revenues

(

355)

(

355)

( 1,584)

Total educational and general 54,409 18,455 72,864 62,265 Auxiliary enterprises:

Housing and food service 6,703 6,703 5,919 Fieldhouse 236 236 262 Rensselaer Union 3,122 3,122 2,678 Athletics 388 388 354 Health service 516 516 514 Total auxiliary enterprises 10,965 10,965 9,727 TOTAL REVENUES 65,374 18,455 83,829 71,992 EXPENDITURES AND MANDATORY TRANSFERS Educational and general Expenditures:

Instruction 23,594 980 24,574 20,182 Sponsored research 11,036 11,036 10,324 Departmental and interdepartmental research 3,520 3,520 3,190 Academic support 4,944 251 5,195 4,436 Student services 1,929 1,929 1,582 Institutional support 8,509 6

8,515 7,702 Operation and maintenance of plant 5,318 5,318 4,322 Scholarships and fellowships 4,767 3,501 8,268 7,660 Other 359 Total educational and general expenditures 49,061 19,294 68,355 59,757 The accompanying notes are an integral part of the financial statements.

8

RENSSELAER POLYTECHNIC INSTITUTE - Statement of Current Funds Revenues, Exp:nditures, and Other Chrngas for the Year Ended June 30, 1982 (in thousands),

with comparative 1981 totals (Continued)

Total Unrestricted Restricted 1982 1981 l

EXPENDITURES AND MANDATORY TRANSFERS (continued)

Mandatory transfers:

Debt service 2,810 2,810 2,794 Current restricted fund matching grants 860

(

860)

Loan fund matching grant 62 62 116 Total educational and general 52,793 18,434 71,227 62,667 Auxiliary enterprises Expenditures:

Housing and food service 5,334 3,334 4,831 Fieldhouse 404 404 363 Rensselaer Union 2,872 2,872 2,682 Athletics 386 386 384 Health service 577 577 510 Total auxiliary enterprise expenditures 9,573 9,573 8,770 Mandatory transfers:

Debt service 945 945 945 Total auxiliary enterprises 10,518 10,518 9,715 TOTAL EXPENDITURES AND MANDATORY TRANSFERS 63,311 18,434 81,745 72,382 OTHER TRANSFERS To unexpended plant 1,924 112 2,036 500 To renewals and replacements 1,688 1,688 628 Other

(

1,572)

(

91)

( 1,663)

( 1,535)

TOTAL OTHER TRANSFERS 2,040 21 2,061

(

407)

TOTAL EXPENDITURES AND l

TRANSFERS 65,351 18,455 83,806 71,975 Receipts in excess of amounts recognized ts revenues 355 355 1,584 NET INCREASE IN FUND BALANCES 23 355 378

$ 1,601 The accompanying notes are an integral part of the financial statements.

9

RENSSELAER POLYTECHNIC INSTITUTE - Notss to tbn rintncini Statements BASIS OF ACCOUNTING The accompanying financial statements have been prepared in accordance with fund accounting principles applicable to colleges and universities. Fund accounting is the procedure by wnich resources are classified for accounting purposes into separate funds in accordance with, and in observance of, limitations and restric-tions placed on the use of the resources by donors and Trustees of the Institute.

Separate accounts are maintained for each fund.

In the accompanying financial statements, funds that have similar characteristics have been combined into fund l

groups.

l Service, rather than profit, is the objective of an educational institution.

Thus, the primary reporting obligation of colleges end universities is one of i

accounting for resources received and used rather than for the determination of net income.

Accordingly, the accompanying statements of current funds revenues, expenditures, and other changes is a statement of financial activities of current funds related to the reporting period.

It does not purport to present the results of operations or the net income or loss for the period as would a state-ment of income or a statement of revenues and expenses.

Depreciation is not recorded on buildings or equipment.

To the extent that current funds are used to finance plant assets, the amounts so provided are accounted for as: expenditures, in the case of normal replacement of movable equipment and library books; mandatory transfers, in the case of required provi-sions for debt amortization, interest, renewals and replacements; and transfers of a nonmandatory nature in all other cases.

Expenditures for new construction and major renewals and replacements are charged to the appropriate plant fund balance where the applicable resources are held.

All capital expenditures for, and gifts of, land, buildings and equipment are recorded as additions of the expended plant fund.

FUND BALANCES Current designated fund balances include funds which have been restricted by the Institute for internal budget and control purposes.

These funds were established at the beginning of the 1983 fiscal year by trcnsfers of such designated funds previously classified in current restricted funds, $903,000, and unexpended plant funds, $1,675,000.

Current restricted fund balances represent resources where the principal may only be expended for the purposes restricted by the source of such funds.

Loan fund balances may only be utilized for the applicable loan program as specified by the sponsor or the Institute.

Endowment fund balances require, in perpetuity, that the principal be invested and only the income from these investments be expended. Life income fund balances require that the principal be invested and, for a period of time, the income froa such investments be distributed to the donor. Upon expiration of the contract, the fund balance will be credited to the appropriate fund in accordance with the purposes specified by the donor.

10

RENSSELAER POLYTECHNIC INSTITUTE - Notes to the Financial Statements (Continu:d)

FUND BALANCES (continued)

Plant fund balances include resources which may be expended only for specific plant facility improvements, as specified by the Institute or the source of such resources, or debt service requirements.

OTHER INFORMATION Accounts receivable and loans to students are presented net of collectability allowances of $120,000 end $900,000, respectively, in 1983 and 1982.

Inventories are stated at the lower of cost or current market value, based upon the first-in, first-out method.

Interfund balances of the cxpended plant fund represent internal borrowings for capital additions to be liquidated through future outside debt financing. All other interfund balances are comprised of short-term transactions and are liqui-dated throughout the year on a regular basis.

All revenues and expenditures in connection with the current summer school program are deferred at June 30 as this program is principally an activity of the succeeding fiscal year.

Outstanding pledges of private support approximating $10,795,000 and $10,887,000 at June 30,1983 and 1982, respectively, are recorded as revenues and other additions to fund balances upon receipt of the actual gift in future years.

The Institute has been awarded approximately $11,418,000 and $10,045,000 as of June 30, 1983 and 1982, respectively, of restricted grants and contracts which, as of those dates, have neither been advanced or expended.

INVESTMENTS Investments are carried at cost or, in the case of noncash gifts, at the fair market value on the date of donation.

The carrying value of invest-ments, and their current fair market value, held by the Institute on June 30 is comprised of the following:

1983 1982 Carrying Market Carrying Market Value Value Value Value Short-term investments

$ 20,447,000 $ 20,591,000

$ 23,809,000 $ 24,483,000 Bonds and notes 28,891,000 30,050,000 30,785,000 28,676,000 Equity securities 59,483,000 84,085,000 48,996,000 53,002,000 Real estate 3,770,000 3,770,000 2,495,000 2,295,000 Other 184,000 184,000 188,000 188,000

$112,775,000 $138,680,000

$106,273,000 $108,644,000 11

RENSSELAER POLYTECHNIC INSTITUTE - Notes to the Finrncial Statements (Continued)

INVESTMENTS (continued)

The distribution of these investments among funds is as follows:

1983 1982 Carrying Market Carrying Market Value Value Value Value Current Funds

$ 5,123,000 $ 5,175,000

$ 9,078,000 $ 9,032,000 Loan Funds 258,000 258,000 55,000 55,000 Endowment and Life Income Funds 107,106,000 132,959,000 96,759,000 99,176,000 Unexpended Plant Funds 288,000 288,000 381,000 381,000

$112,775,000 $138,680,000

$106,273,000 $108,644,000 LAND, BUILDINGS AND EQUIPMENT Land, buildings and equipmerit of the Institute are carried in the expended plant funds at cost, or at the fair market value on the date of donation in the case of gifts, and consist of the following at June 30:

1983 1982 Land

$ 3,119,000

$ 3,119,000 Buildings 82,064,000 81,728,000 Equipment 42,639,000 37,804,000 Construction in progress 13,611,000 3,768,000

$141,429,000

$126,419,000 LONG-TERM DEBT Debt and Debt Service Long-term debt of the Institute is comprised of the following:

Original Final Outstanding at Outstanding at Amount Maturity June 30, 1983 June 30, 1982 United States Department of Housing and Urban Development (HUD)

Dormitory Bonds:

Of 1952

$ 2,880,000 1992 960,000

$ 1,050,000 Of 1956 1,350,000 1996 531,000 570,000 4,230,000 1,491,000 1,620,000 12 o

RENSSELALR POLYTECHNIC INSTITUTE - Notes to the Finrncial Statements (Continusd)

LONG-TERM DEBT (continued)

Debt and Debt Service (continued)

Original Final Outstanding at Outstanding at Amount Maturity June 30, 1983 June 30, 1982 Dormitory Authority of the State of New York:

Series A

$ 5,600,000 1995

$ 2,990,000

$ 3,185,000 Series B 3,520,000 1998 2,265,000 2,380,000 Series C 6,000,000 2001 4,805,000 4,945,000 Series D 10,600,000 2005 9,405,000 9,615,000 Series E 18,550,000 2007 16,953,000 17,336,000 Series F 7,000,000 1985 3,325,000 4,320,000 51,270,000

,39,743,000 41,781,000 Industrial Development Authority Bonds (IDA) 700,000 1991 600,000 700,000 New York State Urban Devel-opment Corporati a (UDC):

High Technology Incubators, Inc.

200,000 1997 200,000

~

UDC mortgage loan 4,307,000 2025 4,307,000 4,507,000 4,507,000 Total long term debt

$60,707,000

$46,341,000

$44,101,000 A13 HUD and Dormitory Authority Series A through D and F debt matures serially.

Dormitory Authority Series E consists of $3,820,000 bonds maturing serially through 1991, and term bonds of $2,300,000 and $11,440,000 maturing in 1995 and 2007 respectively. Sinking fund installments are requ! red to provide for the retirement of the term bonds in amounts ranging from $523,000 in 1992 to

$1,300,000 in 2007.

Principal payments on the IDA Bonds are $60,000 annually beginning in 1986, with a final $300,000 paynant due in 1991.

The interest rate on HUD debt is at 2-3/4%.

Interest rates on Dormitory Author-ity debt range from 3-1/2% to 7%.

The IDA bonds bear interest rates ranging from 8% to 14%.

Funding provided by High Technology Incubators, Inc., a subsidiary of the UDC, was made available to the Institute on a repayable basis.

The repayment schedule begins in the 1987 fiscal year with varying amounts due through the 1997 fiscal year. Amounts due *during the repayment period are contingent upon the amount of net project receipts, as defined in the agreement, in each year.

In any event, the minimum amount of total repayments due by June 30, 1997 is

$200,000, with a maximum amount due by that date of $260,000.

13

__________U

RENSSELAER POLYTECHNIC INSTITUTE - Notes to the Finrncial Statements (Continued)

LONG-TERM DEBT (continued)

Debt and Debt Service (continued)

The UDC mortgage loan bears a face amount of $30,000,000 without interest and results from the provision of assistance by New York State, through the UDC, towards the construction of the Center for Industrial Innovation.

It is recorded at the net present value of the future repayment schedule as of the date of the receipt of this assistance, December 1982, using a discount rate of 11-1/8%.

Approximately $25,693,000, the difference between the total of all payments and the net present value of the liability, has been recorded as an addition to the expended plant fund balance during the 1983 fiscal year.

The facility will be leased to the State of New York and, in turn, cublessed to the Institute.

The repayment schedule for this loan is represented by the payments due to the State by the Institute under this sublease and calls for the total of $30,000,000 in repayments to begin in the 1987 fiscal year at

$600,000 per year, with increasing annual payments due through the 2025 fiscal year.

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4 The aggregate debt service requirements on all long-tern debt as of June 30, 1983 for each of the next five fiscal years is:

1984 and 1985, $4,400,000; 1986, $4,600,000; 1987 and 1988, $4,000,000. Debt service and sinking fund requirements will be funded through mandatory transfers from current funds to unexpended plant funds, to the extent such requirements are not funded by gifts and grants restricted for such purposes or funds available for such purposes held in the unexpended plant ' funds.

Subsequent to June 30, 1983 the Institute issued through the Dormitory Authority

$7,400,000 of 6-3/4% revenue notes due uly 1, 1986.

Interest is due semiannually through maturity and, upon maturity, the principal amount of the notes is expected to be refinanced through the issuance of long-term obligations.

The proceeds of this issue will be applied toward the renuvation of an athletic facility and the installation of a new telecommunications network.

Co11ateralization HUD bonds are collateralized by first mortgages on real property having a carrying value of $4,417,000, a pledge of net revenues from the operations of these dormitories, and deposits with bond trustees having a carrying value of

$556,000 at June 30, 1983.

Dormitory Authority bonds Series A through E represent debt outstanding under capitalized lease-purchase arrangements.

Revenues from property having a carrying value of $48,796,000 at June 30, 1983 is pledged to meet annual lease payments under these agreements.

Dormitory Authority Series F and the IDA Bonds are collateralized by first mortgages on real property and security interests in equipment having a total carrying value of $9,538,000 at June 30, 1983.

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RENSSELAER POLYTECHNIC INSTITUTE - Notes to the Financial Statements (Continued)

LONG-TERM DEBT (continued)

Collateralization (continued)

All Dormitory Authority bonds are further collateralized by a pledge of deposits with bond trustees having a carrying value of $8,002,000 at June 30, 1983, and specified portions of general Institute tuition revenues.

The Institute has further collateralized Dormitory Au'thority Series E and F bonds through pledges of investments and defined revenues of the endowment funds.

At June 30, 1983, the carrying amount of pledged investments is $19,376,000 having a current market value of $22,191,000.

The debt due High Technology Incubators, Inc. is a general obligation of the Institute and is collateralized by a pledge of net project receipts, as defined.

The UDC mortgage loan is collateralized by a pledge of deposits held with trustees at June 30, 1983 totaling $29,587,000 and a first mortgage lien on the Center for Industrial Innovation.

In accordance with the agreement, the Institute has delivered an irrevocable letter of credic in the amount of $:.000,000 as a further pledge of performance during the construction period.

The Center for Industrial innovation is scheduled f or occupancy during the 1987 fiscal year and is expected to have a total construction and equipping cost at occupancy of approximately $48,000,000. An additional $12,000,000 of equipment is expected to be placed in the Center through the 2025 fiscal year. All construction and equipping costs of the Center in excess of the $30,000,000 New York State assist-ance will be cet through contributions of funds and equipment from governmental, private and Institutional resources.

The Dormitory Authority revenue notes issued in August 1983 will be collateral-ized by pledges of specified portions of general Institute tuition revenues and investments of the endowment fund having a market value of at least 110% of the outstanding principal amount of the notes.

COMPENSATED ABSENCES Financial Accounting Standard No. 43, Accounting for Compensated Absences, effective for fiscal years beginning July 1,1981, states that compensated absences be recorded on an accrual basis.

The cumulative amount of compen-sated absences at June 30, 1983 is $1,673,000 and the increase for 1983, included therein, was $226,000. A portion of this amount will be recovered from sponsored research and restricted funds.

The Institute consistently records and reports compensated absences on a cash basis since the impact is not material with respect to total current fc_is expenditures or total unrestricted fund balances of the Institute.

15

RENSSELAER POLYTECHNIC INSTITUTE - Notes to the Financial Statements (Continued)

PENSION PLANS The Institute has two defined benefit pension plans which, in total, cover substantially all employees.

It is the policy to fund costs as accrued, including an amortization of past-servic: costs over a period not exceeding 25 years.

Total provisions for pension costs were $2,219,000 and $1,840,000 for the years ended June 30, 1983 and 1982, respectively. Using an assumed rate of return of approximately 6-1/4%, the actuarial present value of accumu-lated plan benefits was calculated as of July 1, 1982 at $27,414,000 and

$2,288,000; and as of July 1, 1981 at $25,768,000 and $1,876,000 for vested and nonvested participants, respectively. At those respective dates, plan net assets exceeded these benefits by approximately 32% and 41%.

i 16