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{{#Wiki_filter:UFUNIVERSITY 9f College of Engineering PO Box 116134 UF Training Reactor Facility Gainesville, FL 32611 352-392-2104 bshea@ufl.edu September 4, 2014 U.S. Nuclear Regulatory Commission 10 CFR 50.4, Written Communications ATTN: Document Control Desk UFTR Operating License R-56, Docket 50-83 Washington, D.C. 20555-0001
{{#Wiki_filter:UFUNIVERSITY 9f College of Engineering                                                   PO Box 116134 UF Training Reactor Facility                                             Gainesville, FL 32611 352-392-2104 bshea@ufl.edu September 4, 2014 U.S. Nuclear Regulatory Commission                   10 CFR 50.4, Written Communications ATTN: Document Control Desk                     UFTR Operating License R-56, Docket 50-83 Washington, D.C. 20555-0001


==Subject:==
==Subject:==
UFTR Responses to Request for Additional Information (TAC NO.ME1586)In July 2002, the UFTR submitted a request for license renewal (ML022130145).
UFTR Responses to Request for Additional Information (TAC NO.
In February 2010 and May 2010, the UFTR provided supplemental information intended to update the financial information made previously in the license renewal process (ML100610445 and ML101250177).
ME1586)
By letter dated June 9, 2014, the NRC requested updated financial information since some of the previously provided information may be outdated (ML1321A048). Attached are theUFTR responses to this most recent request including the revised SAR Chapter 15.This submittal has been reviewed and approved by UFTR management and by the Executive Committee of the Reactor Safety Review Subcommittee.
In July 2002, the UFTR submitted a request for license renewal (ML022130145). In February 2010 and May 2010, the UFTR provided supplemental information intended to update the financial information made previously in the license renewal process (ML100610445 and ML101250177).
By letter dated June 9, 2014, the NRC requested updated financial information since some of the previously provided information may be outdated (ML1321A048). Attached are the UFTR responses to this most recent request including the revised SAR Chapter 15.
This submittal has been reviewed and approved by UFTR management and by the Executive Committee of the Reactor Safety Review Subcommittee.
I declare under penalty of perjury that the foregoing and attached are true and correct to my knowledge.
I declare under penalty of perjury that the foregoing and attached are true and correct to my knowledge.
Executed on September 4, 2014.Brian Shea Reactor Manager cc: Dean -College of Engineering Reactor Safety Review SubcommitteeFacility DirectorReactor Manager Licensing Engineer NRC Project Manager Ao/o The Foundation for The Gator Nation An Equal Opportunity Institution
Executed on September 4, 2014.
: 1. The NRC staff will analyze the financial statements for the current year, which are required by 10 CFR 50. 71(b), to determine if the UF is financially qualified to operatethe UFTR.
Brian Shea Reactor Manager cc:     Dean - College of Engineering Reactor Safety Review Subcommittee Facility Director Reactor Manager Licensing Engineer NRC Project Manager Ao/o The Foundationfor The Gator Nation An Equal Opportunity Institution
Since UF's financial statements included with the application are out of date, provide a copy of the latest financial statements for the NRC staff's review.Enclosed you will find a copy of the latest UF annual financial statement.
: 1. The NRC staff will analyze the financial statements for the current year, which are requiredby 10 CFR 50. 71(b), to determine if the UF isfinancially qualified to operate the UFTR. Since UF'sfinancialstatements included with the applicationare out of date, provide a copy of the latest financialstatementsfor the NRC staff's review.
: 2. Pursuant to 10 CFR 50. 33(f)9(2), "[t]he applicant shall submit estimates for total annual operating costs for each of the firstfive years of operations of the facility. "Since theinformation included in the application is now out of date, provide the following additional information: (a) Projected operating costs of the UFTR for each of the fiscal years (FYs) 2015-2019 (the firstfive year period after the projected license renewal).Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July 1 to June 30 (i.e. FY15 runs from July 1, 2014 to June 30, 2015).Year Salary Other Personnel Services Operating Expenses Total FY 15 $325,933 $45,716 $122,525 $494,174 FY 16 $335,711 $45,716 $122,525 $503,952 FY 17 $345,782 $45,716 $122,525 $514,023 FY 18 $356,156 $45,716 $122,525 $524,397 FY 19 $366,841 $45,716 $122,525 $535,082 FY 20 $377,847 $45,716 $122,525 $546,088 FY 21 $389,182 $45,716 $122,525 $557,423 (b) UF's source(s) offunding to cover the operating costs for the above fiscal years.The source of funding is unchanged.
Enclosed you will find a copy of the latest UF annual financial statement.
: 3. The application references a decommissioning cost estimate for the UFTR that states that the decommissioning cost estimate was $3.28 million in 2009 dollars, and includes a 25 percent contingency factor. The NRC staff needs the following additional information tocomplete its review of the UFTR decommissioning cost estimate: (a) A current decommissioning cost estimate in 2015 dollars for the UFTR to meet the NRC's radiological release criteria for decommissioning the facility for unrestricted use, pursuant to 10 CFR 50. 75(d)(2).
: 2. Pursuantto 10 CFR 50.33(f)9(2), "[t]he applicantshall submit estimatesfor total annual operatingcosts for each of the firstfive years of operationsof the facility. "Since the information included in the applicationis now out of date, provide the following additionalinformation:
Accordingly, describe the basis for how the cost estimate was developed (i.e., state the references for the decommissioning cost estimate).
(a)     Projectedoperatingcosts of the UFTR for each of the fiscal years (FYs) 2015-2019 (the firstfive year periodafter the projected license renewal).
Based on the most recent Waste Burial Adjustment Factor (NUREG-1307) and July 2014 Page I of 3 Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The basis for the cost estimate development is unchanged.(b) A summary of total decommissioning costs by labor, waste disposal, other items (such as energy, equipment, and supplies) in current dollars, and a 25 percent contingency factor.The summary of total decommissioning costs is unchanged.(c) Provide a numerical example showing how the 2015 cost estimate will be updated periodically in the future.The numerical example is unchanged.
Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July 1 to June 30 (i.e. FY15 runs from July 1, 2014 to June 30, 2015).
: 4. The application indicates that UFplans to use a statement of intent (SOI) as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50. 75(e)(1)(iv).
Year       Salary         Other Personnel Services   Operating Expenses     Total FY 15     $325,933       $45,716                     $122,525               $494,174 FY 16     $335,711       $45,716                     $122,525               $503,952 FY 17     $345,782       $45,716                     $122,525               $514,023 FY 18     $356,156       $45,716                     $122,525               $524,397 FY 19     $366,841       $45,716                     $122,525               $535,082 FY 20     $377,847       $45,716                     $122,525               $546,088 FY 21     $389,182       $45,716                     $122,525               $557,423 (b)     UF's source(s) offunding to cover the operatingcosts for the above fiscal years.
Where the applicant intends to use a SOI, the NRC stqff must find that the applicant "is a Federal, State, or local government licensee. " To make this finding, the applicant must state that it is a State government organization and that the decommissioning funding obligations of the applicant are backed by the State government, and also provide corroborating documentation.
The source of funding is unchanged.
Further, the applicant must provide documentation verifying that the signatory of the SOI is authorized to execute said document that binds the university.
: 3. The applicationreferences a decommissioning cost estimatefor the UFTR that states that the decommissioning cost estimate was $3.28 million in 2009 dollars, and includes a 25 percent contingencyfactor. The NRC staff needs the following additionalinformation to complete its review of the UFTR decommissioning cost estimate:
This document may be a governing body resolution, management directive, or other form that provides an equivalent level of assurance.
(a)     A current decommissioningcost estimate in 2015 dollarsfor the UFTR to meet the NRC's radiologicalrelease criteriafor decommissioning the facility for unrestricteduse, pursuantto 10 CFR 50. 75(d)(2). Accordingly, describe the basis for how the cost estimate was developed (i.e., state the references for the decommissioning cost estimate).
As the application does not include all of the above information, submit the following: (a) An updated SOI which includes the current (2015 dollars) cost estimate for decommissioning, a statement that funds for decommissioning will be obtained when necessary, and the signatory's oath or affirmation attesting to the information.
Based on the most recent Waste Burial Adjustment Factor (NUREG-1307) and July 2014 Page I of 3
Based on the most recent Waste Burial Adjustment Factor (NUREG- 1307) and July 2014 Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The decommissioning funding assurances provided in the prior SOI are unchanged.(b) Documentation that corroborates the statement in the application that UF is aState agency and a State of Florida government licensee under 10 CFR 50. 75(e)(2)(iv).
The enclosed UF annual financial statement corroborates the statement in the application that UF is a component unit of the State of Florida.Page 2 of 3 (c) A statement as to whether the decommissioning finding obligations for the UFTR are backed by the State of Florida government.
The application must also present documentation that corroborates this statement.
For example, the documentation may be a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioning funding obligations, of the applicant are backed or supported by the full faith and credit of the State of Florida, or an opinion of the applicant
's General Counsel with citations to statutes, regulations, and/or case law that the obligations, or at least those with respect to the decommissioning funding of the applicant are obligations backed or supported by the full faith and credit of the State of Florida.The Florida Constitution and Florida Statutes make clear there is an obligation for the State of Florida to provide financial support to the University in its obligations.
Page 3 of 3 CHAPTER 15 FINANCIAL QUALIFICATIONS Rev. 0 8/26/2014 Chapter 15 -Valid Pages i Rev. 0 8/26/2014 ii Rev. 0 8/26/2014 15-1 Rev. 0 8/26/2014 i Rev. 0 8/26/2014 TABLE OF CONTENTS 15 FINANCIAL QUALIFICATIONS 15-1 15.1 Financial Ability to Operate the UFTR 15-1 15.2 Financial Ability to Decommission the UFTR 15-1 ii Rev. 0 8/26/2014 15 FINANCIAL QUALIFICATIONS 15.1 Financial Ability to Operate the UFTR Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July I to June 30 (i.e. FY15 runs from July 1, 2014 to June 30,2015). The salary numbers include benefits (fringe).Year Salary Other Personnel Services Operating Expenses Total FY 15 $325,933 $45,716 $122,525 $494,174 FY 16 $335,711 $45,716 $122,525 $503,952 FY 17 $345,782 $45,716 $122,525 $514,023 FY 18 $356,156 $45,716 $122,525 $524,397 FY 19 $366,841 $45,716 $122,525 $535,082 FY 20 $377,847 $45,716 $122,525 $546,088 FY 21 $389,182 $45,716 $122,525 $557,423 Funding for the UFTR is appropriated by the State of Florida. This funding includes money for salaries and expenses but no large pieces of equipment.
Items in this category are handled with occasional direct allocations either from the College of Engineering, the University, or from external Grants and Awards.In addition, these cost estimates do not include infrastructure services provided by the university such asbuilding heating, air conditioning, electricity, and water.The UFTR occasionally performs some commercial services, however, the commercial work comprises less than 1% of the ownership and operating costs associated with the facility.
Therefore, the UFTR should continue to be licensed as a Class 104(c) facility.15.2 Financial Ability to Decommission the UFTR Facility The estimated cost of decommissioning the UFTR is $4.03 million as of August 19, 2014.The decommissioning cost estimate for UFTR is based on actual vendor price quotes (Coughlin, 2009), prior experience with reactor disassembly, NRC Decommissioning Guidance (NUREG-1757, 2006), and decommissioning experience of other research reactors (Marske & Hertel, 2001). The cost estimate takes no credit for salvage value of any reactor components.
The decommissioning cost estimates are updated annually.
The updates include adjustments based on the Consumer Price Index (CPI) and Low-Level Waste Disposal factors (NUREG- 1307).The University of Florida is a state institution and thus, according to the provisions of 10 CFR 50.75(e)(1)(iv), the funds needed for decommissioning will be obtained when necessary. The UFTR will likely choose the DECON decommissioning method.15-1


I' 2012-2013 Annual Financial Report What is the value of technology unless it moves us forward in some practical and beneficial way? Just how im o iat is Sl.c re unless it changes hvis or the better?At the University of Florida, a steadfast and overarching commitment drives us not only to focus on life-changing science, but also to apply that knowledge and change people's lives. Few, if any, other public research universities can match UF's success at transferring technological and scientific achievements to the real world.It begins in hundreds of UF facilities pursuing thousands of often-groundbreaking studies. It happens in classrooms, where students learn to think in fresh and innovative ways. It progresses in dozens of labs, accelerated by the unimaginable computing speed of HiPerGator. It is perfected and commercialized by entrepreneurs, corporations and investors, many of whom benefit from UF's own highly successful business incubators and who go on to build successful businesses that create thousands of jobs.In the end, our lives are affected in numerous ways -some simple, like better tasting tomatoes;some historic, like saving the Statue of Liberty;some essential, like safer hospital operating environments; and some inspirational, like giving injured soldiers back the use of damaged limbs.Lives changed, in thousands of ways, in hundreds of places all around the world.are good we've changed your life as well.Table of Contents President's Message ............................................
Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The basis for the cost estimate development is unchanged.
2 University of Florida Overview Lives Changed Every Day ...............................
(b)    A summary of total decommissioning costs by labor,waste disposal, other items (such as energy, equipment, and supplies) in currentdollars, and a 25 percent contingencyfactor.
4 Living More Safely .......................................
The summary of total decommissioning costs is unchanged.
6 Lives Reclaimed
(c)    Provide a numerical example showing how the 2015 cost estimate will be updated periodicallyin the future.
...........................................
The numerical example is unchanged.
8 Living Innovation
: 4. The application indicates that UFplansto use a statement of intent (SOI) as the method to provide decommissioningfunding assurance,as provided for by 10 CFR
.........................................
: 50. 75(e)(1)(iv). Where the applicant intends to use a SOI, the NRC stqff must find that the applicant "is a Federal,State, or local government licensee. " To make thisfinding, the applicant must state that it is a State government organizationand that the decommissioningfunding obligationsof the applicantare backed by the State government, and also provide corroboratingdocumentation. Further,the applicantmust provide documentation verifying that the signatory of the SOI is authorizedto execute saiddocument that binds the university. This document may be a governing body resolution, management directive, or otherform thatprovides an equivalent level of assurance.As the applicationdoes not include all of the above information,submit the following:
10 Knowledge by the Numbers ..........................
(a)    An updated SOI which includes the current(2015 dollars) cost estimatefor decommissioning, a statement thatfunds for decommissioningwill be obtained when necessary, and the signatory's oath or affirmation attesting to the information.
12 Introduction from the Vice President and Chief Financial Officer ..........................................
Based on the most recent Waste Burial Adjustment Factor (NUREG- 1307) and July 2014 Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The decommissioning funding assurances provided in the prior SOI are unchanged.
14 Independent Auditor's Report on Financial Statements
(b)    Documentationthat corroboratesthe statement in the applicationthat UF is a State agency and a State of Floridagovernment licensee under 10 CFR
...............................
: 50. 75(e)(2)(iv).
16 Management's Discussion and Analysis ...................
The enclosed UF annual financial statement corroborates the statement in the application that UF is a component unit of the State of Florida.
18 Basic Financial Statements Statement of Net Position .............................
Page 2 of 3
25 Statement of Revenues, Expenses, and Changes in Net Position .......................
26 Statement of Cash Flows ...............................
27 Notes to the Financial Statements
....................
28 Other Required Supplementory Information Schedule of Funding Progress -Other Postemployment Benefits Plan .............
53 Supplemental Information FinanciolAidAdministered
............................
53 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters ....................
54


2012-2013 Annual Financial Report Public discussion of the State's 2013 r emNkenr e is~ a eOu has focused on how the law will s pport the University of Vorid in rising among the ranks of the Nation's best pu lic Ji¢versities.
(c)    A statement as to whether the decommissioningfinding obligationsfor the UFTR are backed by the State of Floridagovernment. The applicationmust alsopresent documentation that corroboratesthis statement. For example, the documentation may be a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioningfunding obligations,of the applicant are backed or supported by the full faith and credit of the State of Florida,or an opinion of the applicant's General Counsel with citations to statutes, regulations,and/or case law that the obligations, or at least those with respect to the decommissioningfunding of the applicant are obligationsbacked or supportedby the full faith and credit of the State of Florida.
While that is certainly a goal, there is a deeper and more general benefit.By enabling UF to hire dozens of leading scientists and scholars, the law will underpin research that extends the boundaries of human knowledge and improves people's lives. This outcome will augment UF's legacy of contributing to the economic prosperity of our State and Nation -a legacy that dates to our founding charter as a land-grant university.
The Florida Constitution and Florida Statutes make clear there is an obligation for the State of Florida to provide financial support to the University in its obligations.
Big Data and Other Frontiers As this year's financial report makes clear, UF research has spurred important steps forward in agriculture, medicine, technology and most other essential aspects of modern life.The preeminence law gives us an opportunity to focus on new advancements in areas of great future promise.We took the first big step toward this goal in October, when we selected 16 proposals put forward by UF faculty to receive the bulk of the first round of $15 million in State preeminence funding.The proposals, which seek to advance new frontiers in health, computing, agriculture and the life sciences, are as diverse and comprehensive as our University.
Page 3 of 3
But they share a common feature of occupying the technological or scientific vanguard.We see this feature, for example, in a proposal toexplore new uses for the trillions of gigabytes of information now being generated by computers and sensors worldwide -a rapidly emerging field known as Big Data.Put forward by multidisciplinary teams of UF scientists, engineers, artists and educators, this research explores ways to tap Big Data to predict disease outbreaks, forecast the effects of climate change, improve online education and much more.We are so enthusiastic about the potential, we selected the Big Data proposal to receive the highest proportion of the preeminence dollars -$3.8 million.The research envisioned in the other proposals is also far-reaching.
We will support new faculty whose work seeksto discover and develop new drugs, improve mathematical modeling of epidemics and enhance human understanding of neuroscience and the brain.We will also fund efforts to improve early childhood education, make manufacturing more efficient and strengthen cybersecurity.
A Widening Impact UF has committed to matching the State preeminence funding with private dollars raised through the UF Foundation. Indeed, we will fund a second round of preeminence research proposals in late 2013.In conjunction with these efforts, the UF Foundationhas pledged to raise $800 million to create more than 100 new endowed professorships and chairs for accomplished faculty members over the next three years.It will take time to identify and hire the scientists and scholars who will help us reach our ambitions, and the results will hardly be immediate.
But UF has a vibrant, growing and highly regarded technology commercialization enterprise that is well positioned to capitalize on these new faculty members'discoveries and innovations.
As UF scientists and entrepreneurs drew on nerve regeneration research to pioneer new techniques to restore damaged nerves, and as they are tapping hurricane research to build stronger houses, so they will also make the most of the research spurred by the preeminence funding.As a result, we can be confident that the preeminence initiative will not only prove a benefit to UF but also toFlorida's economy
-and to people everywhere.
J. Bernard Machen President, University of Florida A Component Unit of the State of Florida I 3  


6,000 im-metfl oneI suItdeets stody"!q at U1 oho wil6/ use their ;,ew to im, rove lives 61!over the world.Throughout the years, the University of Florida has worked to improve the everyday lives of people.lncluding you. Improving what you taste, how you see, and even your pet's health are all in a day's work at the University of Florida.A Tastier Salad.
CHAPTER 15 FINANCIAL QUALIFICATIONS
UF's tomato breeding program dates back to 1922. So when consumers craved a redder, tastier, juicier tomato, who better to accept the challenge than our own horticulturists?
After years of research, they created a naturally developed, vine-ripened hybrid and named it Tasti-Lee@.
Salad and sandwich lovers have beengrateful ever since.Solutions for Your Life. Helping small farmers grow grapes in northwest Florida. Organizing 4-H camps that offer kids a place to experience and appreciate nature. Educating residents about the importance of agriculture.
Those are just a few of the ways that UF/IFAS Extension touches the lives of Floridians in all 67 counties.
UF/IFAS Extension is dedicated to developing knowledge in agriculture, human and natural resources, and the life sciences, and to making that knowledge accessible in order to sustain and enhance the quality of human life.Clearer Vision. The odds are that you or someone close to you suffers from glaucoma.
It affects millions of individuals in the U.S. alone.Fortunately, UF scientists had a vision and created the breakthrough drug Trusopt.
A life-changing discovery, Trusopt relieves the symptoms of glaucoma and is relatively free of the side effects associated with other drugs used to treat the disease. One small eye drop and thousands of lives changed.Slower Growing, Less Mowing,.UF horticulturist Dr. Russell Nagata is an unsung hero to countless Americans faced with the never-ending task of mowing the lawn. He created Captiva, a much slower-growing type of St.Augustinegrass.
Captiva grows between one-and-a-half and two-and-a-half inches a week, compared with the three-to-five inches rate of typical grass.Less mowing also means less fuel to buy. But that's not all. Captiva offers one additional benefit: It is considerably more resistant than other varieties tolawn-killing chinch bugs.More Purrs. Cats do not have nine lives. So, toenhance the quality of their one precious life, UF researcher Dr. Janet Yamamoto developed a feline AIDS vaccine. Her most recent research with the vaccine has revealed that the FIV protein also stimulated human T cells to produce anti-HIV activity.
The connection between feline AIDS and HIV may eventually lead to a vaccine for humans and an even better vaccine for cats. So, the furry felines-and the people they own -can look forward to longer lives together.The University of Florida Shellfish Aquaculture Extension Program provides educational, technical and organizational support to the clam forming industry in Florida. In 1995, aposition was created within the UF/IFAS Extension to assist the emergent industry on Florida's west coast.In a State that produces one billion square feet of turfgrass each year, there is literally a lot of ground to cover. A dedicated team of researchers at UF analyzes Florido's gross, as well as the soil beneath it and pests that pose a constant threat.07 Each of Florida's 67 counties has a UF/IFAS Extension office, which provides residents with scientific knowledge to sustain and improve the quality of human life in areas ranging from agriculture, home gardening, and health and nutrition, to home finances, disaster preparedness, and family relationships.
UF/IFAS research centers and demonstration sites around the State provide Florida and the entire Notion with research borne knowledge used to help farmers, ranchers, growers, and others feed the world.A Component Unit of the State of Florida I 5


5hwo' 1995. thaueks to the Soicn~omitocolny tir~who sstM.Science and technology generated in the laboratories at UF help produce one extremely valuable commodity:
Rev. 0 8/26/2014 Chapter 15 - Valid Pages i    Rev. 0 8/26/2014 ii  Rev. 0 8/26/2014 15-1 Rev. 0 8/26/2014 i
peace of mind.Our homes are safer. Our lives are healthier.
 
And our hopes are higher. Not just because someone had a good idea, but because they also had the passion to make it work.Sturdier Homes. Why would wind engineers at the University of Florida develop the world'slargest portable hurricane simulator?
Rev. 0 8/26/2014 TABLE OF CONTENTS 15 FINANCIAL QUALIFICATIONS                              15-1 15.1 Financial Ability to Operate the UFTR        15-1 15.2 Financial Ability to Decommission the UFTR    15-1 ii
Aren't there enough real hurricanes already? That's exactly why. By creating and controlling their own hurricanes, UF engineers are able to experimentwith building materials to determine which are the most storm-resistant.
 
The hurricane simulator can create the effects of a Category-3 (Katrina-sized) storm, complete with wind and rain. So, while we'llprobably never be able to prevent hurricanes, we can find better ways to prepare for them.Longer Lasting Liberty. The proud lady has stood, torch in hand, in New York Harbor since 1886. She, in fact, may be the most iconic of all American statues and monuments.
Rev. 0 8/26/2014 15      FINANCIAL QUALIFICATIONS 15.1    Financial Ability to Operate the UFTR Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July I to June 30 (i.e. FY15 runs from July 1, 2014 to June 30, 2015). The salary numbers include benefits (fringe).
But in 1994, the Statue of Liberty had a problem: termites.
Year          Salary            Other Personnel Services          Operating Expenses        Total FY 15        $325,933                    $45,716                        $122,525          $494,174 FY 16        $335,711                    $45,716                        $122,525          $503,952 FY 17        $345,782                    $45,716                        $122,525          $514,023 FY 18        $356,156                    $45,716                        $122,525          $524,397 FY 19        $366,841                    $45,716                        $122,525          $535,082 FY 20        $377,847                    $45,716                        $122,525          $546,088 FY 21        $389,182                    $45,716                        $122,525          $557,423 Funding for the UFTR is appropriated by the State of Florida. This funding includes money for salaries and expenses but no large pieces of equipment. Items in this category are handled with occasional direct allocations either from the College of Engineering, the University, or from external Grants and Awards.
Her condition worsened until 1996, when Sentricon came to the rescue. Developed by University of Florida entomologists and DowElanco (now Dow AgroSciences), Sentricon is an environmentally friendly termite control technology.
In addition, these cost estimates do not include infrastructure services provided by the university such as building heating, air conditioning, electricity, and water.
For nearly 20 years, Sentricon has been on the job not only on Ellis Island, but also in homes across the Nation, including a big white one at 1600 Pennsylvania Avenue.A Better View. It takes special skills to fly over crops and instantly send back video and stills for farmers to analyze and potentially detect disease, irrigation or fertilizer issues, predict crop yields and more. And who would be willing to ride along with a hurricane, collecting data to help scientists predict the intensity and trajectory of thestorm? Drones are capable of both assignments and are on the job at the University of Florida. Equipped with sensors and cameras, these unmanned aerial vehicles are helping UF soar to new heights in research.Healthier Hospitals.
The UFTR occasionally performs some commercial services, however, the commercial work comprises less than 1% of the ownership and operating costs associated with the facility. Therefore, the UFTR should continue to be licensed as a Class 104(c) facility.
Even a Gator can learn from a shark. Dr. Anthony Brennan studied the antimicrobial properties of sharkskin in hopes of finding ways to reduce the buildup of barnacles on submarines.
15.2    Financial Ability to Decommission the UFTR Facility The estimated cost of decommissioning the UFTR is $4.03 million as of August 19, 2014.
He and his team at the UF College of Engineering then replicated the microscopic diamond shapes to create the world's first technology to inhibit bacterial growth through pattern alone.Extensive research by OF engineers has enabledhomebuilders to create safer, sturdier structures that protectfamilies during severe weather and better withstand the test of time.UF doesn't just study hurricanes, we create them.Our hurricane simulator can create the wind and rain produced by a Category-3 storm to study its effects and help builders and residents alike more effectively prepare for the real thing.300+That's the number of crops grown and harvested in Florida, more than any other state in the Nation. It's also why food safety education is a critical area for UF's Institute of Food andAgricultural Sciences.
The decommissioning cost estimate for UFTR is based on actual vendor price quotes (Coughlin, 2009),
The UF/IFAS ServSafeO program helps protect Florida residents and visitors from foodborne illness by training foodservice personnel in proper sanitation and food handling practices.
prior experience with reactor disassembly, NRC Decommissioning Guidance (NUREG-1757, 2006), and decommissioning experience of other research reactors (Marske & Hertel, 2001). The cost estimate takes no credit for salvage value of any reactor components. The decommissioning cost estimates are updated annually. The updates include adjustments based on the Consumer Price Index (CPI) and Low-Level Waste Disposal factors (NUREG- 1307).
From 2007 to 2012 the program certified more than 2,700 participants, many of whom were able to secure better-paying jobs as a result.A Component Unit of the State of Florida I 7
The University of Florida is a state institution and thus, according to the provisions of 10 CFR 50.75(e)(1)(iv), the funds needed for decommissioning will be obtained when necessary. The UFTR will likely choose the DECON decommissioning method.
( M, k.l pf~oients SeenJ irlfh, LIE IipalteI Sharos P0,d/i~rnctEl
15-1
..EYK!Z1O. 12 OT While not all inventions affect people immediately, directly and personally, there is that select group of innovative achievements that have aprofound and lasting impact on the individuals they touch.In some cases, they change lives. In others, they save lives.Better Futures.
 
AxoGen, Inc., provides critically wounded soldiers with what they most deserve and desire: a second chance. The University of Florida's McKnight Brain Institute developed technologies for nerve grafting and regeneration.
I' 2012-2013Annual FinancialReport What isthe value of technology unless itmoves us forward insome practical and beneficial way? Just how imo iat isSl.cre unless it changes hvis or the better?
Marketed under the name Avance, the technique allows surgeons to reconstruct damaged peripheral nerves so that the central nervous system can communicate with muscles or organs throughout the body. When Navy corpsman Ed Bonfiglio was shot in the left leg while on patrol in Afghanistan, doctors successfully employed this procedure.
At the University of Florida, a steadfast and overarching commitment drives us not only to focus  Table of Contents on life-changing science, but also to apply that    President'sMessage ............................................      2 knowledge and change people's lives. Few, ifany, other public research universities can match UF's    University of Florida Overview success at transferring technological and scientific      Lives Changed Every Day ...............................        4 achievements to the real world.                          Living More Safely .......................................      6 Lives Reclaimed ........................................... 8 It begins inhundreds of UF facilities pursuing Living Innovation ......................................... 10 thousands of often-groundbreaking studies. It Knowledge by the Numbers ..........................            12 happens in classrooms, where students learn to think infresh and innovative ways. It progresses in Introduction from the Vice Presidentand Chief dozens of labs, accelerated by the unimaginable FinancialOfficer.......................................... 14 computing speed of HiPerGator. Itisperfected and Independent Auditor's Report commercialized by entrepreneurs, corporations on FinancialStatements ...............................        16 and investors, many of whom benefit from UF's Management's Discussionand Analysis...................              18 own highly successful business incubators and who Basic FinancialStatements go on to build successful businesses that create Statement of Net Position.............................        25 thousands of jobs.
As a result, Ed still has both of his legs. And a much brighter future.
Statement of Revenues, Expenses, Inthe end, our lives are affected in numerous              and Changes inNet Position.......................          26 ways - some simple, like better tasting tomatoes;        Statement of Cash Flows...............................        27 some historic, like saving the Statue of Liberty;        Notes to the FinancialStatements ....................         28 some essential, like safer hospital operating        OtherRequired Supplementory Information environments; and some inspirational, like giving        Schedule of Funding Progress-injured soldiers back the use of damaged limbs.            Other Postemployment Benefits Plan.............            53 Lives changed, inthousands of ways, in              Supplemental Information hundreds of places all around the world.                  FinanciolAidAdministered............................          53 IndependentAuditor's Report on Internal ControlOver FinancialReporting and on C,*ances are good we've                                    Compliance and Other Matters....................            54 changed your life as well.
A New View of the Brain. A simple blood test to detect traumatic brain injuries?
 
If that sounds revolutionary, it is. Researchers at UF's McKnight Brain Institute discovered proteins from the breakdown of dying brain cells in blood. In doing so, they paved the way for Banyan Biomarkers, the leader in blood test-based diagnostic products for the detection of traumatic brain injuries.Someday soon, physicians will know almost immediately the extent of a brain injury and will be able to treat -and even save the lives of -soldiers, accident victims, and athletes.Faster Drying Tears. A children's emergency room is probably the last place a parent wants to go.But should the need arise, families in Gainesville are fortunate to have the Pediatric ER at UF Health Shands Hospital nearby. All UF Health pediatric teams are now located in a single building, with a child-focused environment.
2012-2013 Annual FinancialReport Public discussion of the State's 2013 remNkenr eeOuis~                                          a has focused on how the law will s pport the University of Vorid inrising among the ranks of the Nation's best pu lic Ji¢versities.
This enables us to better serve our young patients and their families.The entrance welcomes them into fun and colorful surroundings.
While that iscertainly a goal, there is a deeper and   The research envisioned inthe other proposals is more general benefit.                                  also far-reaching.
Once inside, the children and young adults will experience quality, streamlined pediatric care so they can get back to their lives.Greater fope. Quite often, people lack the ability to change their own lives as much as they'd like to. Drug and alcohol addiction are formidable opponents.
By enabling UF to hire dozens of leading scientists    We will support new faculty whose work seeks and scholars, the law will underpin research that      to discover and develop new drugs, improve extends the boundaries of human knowledge and         mathematical modeling of epidemics and enhance improves people's lives. This outcome will augment    human understanding of neuroscience and the brain.
UF Health Florida Recovery Center is keenly aware of that and offers help to those fighting substance abuse. The doctors, therapists, counselors and representatives have an intimate understanding of recovery and help is available any time of day, every day of the year. Affiliated with the UF Department of Psychiatry, the Center has a main office near campus and four satellite offices serving the rest of Florida.Navy corpsman Ed BonfiglioThe UF Health Shands Pediatric ER$740m That's the amount UF spent in 2011 on research and development, ranking it 12th among theNation's top public research universities.
UF's legacy of contributing to the economic prosperity We will also fund efforts to improve early childhood of our State and Nation - a legacy that dates to our  education, make manufacturing more efficient and founding charter as a land-grant university.          strengthen cybersecurity.
Among the discoveries that have risen from the innovative and creative minds of UF researchers: a test that uses peanut butter to confirm an Alzheimer's disease diagnosis; softball-sized satellites that con be built cheaply and launched quickly; the Tasti-Lee@
Big Data and Other Frontiers                          AWidening Impact As this year's financial report makes clear, UF        UF has committed to matching the State research has spurred important steps forward in        preeminence funding with private dollars raised agriculture, medicine, technology and most other      through the UF Foundation. Indeed, we will fund a essential aspects of modern life.                      second round of preeminence research proposals in The preeminence law gives us an opportunity to        late 2013.
tomato that can survive shipping and still taste great; the Sentricon Termite Colony Elimination System; the glaucoma drug Trusopt; and, of course, Gatorade.A Component Unit of the State of Florida I 9 I I wkholoies accovpted to?90 Percent of the total for the entine Stoic doiversity system., UF has become a fertile ground for innovation.
focus on new advancements in areas of great            Inconjunction with these efforts, the UF Foundation future promise.                                        has pledged to raise $800 million to create more We took the first big step toward this goal inOctober, than 100 new endowed professorships and chairs when we selected 16 proposals put forward by UF        for accomplished faculty members over the next faculty to receive the bulk of the first round of $15  three years.
Not only is the University a springboard for new ideas, products and businesses, it's also changing the way people responsible for that innovation are learning and collaborating.
million inState preeminence funding.                  Itwill take time to identify and hire the scientists The proposals, which seek to advance new frontiers    and scholars who will help us reach our ambitions, inhealth, computing, agriculture and the life          and the results will hardly be immediate. But UF has sciences, are as diverse and comprehensive as our      a vibrant, growing and highly regarded technology University. But they share a common feature of        commercialization enterprise that iswell positioned occupying the technological or scientific vanguard. to capitalize on these new faculty members' discoveries and innovations.
Meanwhile, just a short walk east of campus will reveal how UF is changing the landscape of higher education.
We see this feature, for example, ina proposal to explore new uses for the trillions of gigabytes of    As UF scientists and entrepreneurs drew on nerve information now being generated by computers and      regeneration research to pioneer new techniques sensors worldwide - a rapidly emerging field known    to restore damaged nerves, and as they are tapping as Big Data.                                          hurricane research to build stronger houses, so they will also make the most of the research spurred by Put forward by multidisciplinary teams of UF the preeminence funding.
And Gainesville.
scientists, engineers, artists and educators, this research explores ways to tap Big Data to predict      As a result, we can be confident that the preeminence disease outbreaks, forecast the effects of climate    initiative will not only prove a benefit to UF but also to change, improve online education and much more.        Florida's economy - and to people everywhere.
Community Redefined.
We are so enthusiastic about the potential, we selected the Big Data proposal to receive the highest proportion of the preeminence dollars - $3.8 million.
This is Innovation Square at the University of Florida. People work here, and soon people will live and play here, too.A 40-acre research community, Innovation Square has created an environment where synergy is inevitable.
J. Bernard Machen President,University of Florida A Component Unit of the State of Florida I3
Where the line between social andbusiness interactions has been virtually erased.Where diverse individuals and ideas come together to create even greater ideas. And where products move from the mind to the marketplace.
 
Innovation Square also provides the residents of its "community" an opportunity to collaborate with UF's 4,000 talented researchers, whose annual research awards total $641 million.Faster Startups.
6,000 im-metfl oneI suItdeets stody"!q at U1oho wil6/  use their ;,ew kn*owiede to im, rove lives 61!
If you've ever heard the question, "Where do you come up with your ideas?" some could answer, "At The Florida Innovation Hub at UF." Located in the heart of Innovation Square, this 48,000 square-foot facility serves as an incubator for startup companies based on technologies emerging from UF laboratories.
over the world.
By enabling businesses to devote their limited resources to technology and market development rather than operational costs, Innovation Hub has attracted more than two dozen startup tenants and led to the creation of 250 jobs in its first 20 months of existence.
Throughout the years, the                                      Clearer Vision. The odds are that you or someone close to you suffers from glaucoma. It University of Florida has                                      affects millions of individuals inthe U.S. alone.
A Minor Revolution.
Fortunately, UF scientists had a vision and created worked to improve the                                          the breakthrough drug Trusopt. Alife-changing discovery, Trusopt relieves the symptoms of everyday lives of people.                                      glaucoma and isrelatively free of the side effects associated with other drugs used to treat the lncluding you. Improving                                      disease. One small eye drop and thousands of lives changed.
The spring semester of 2013 welcomed not only new students to the University of Florida but also an entirely new concept in higher education:
what you taste, how you see,                                   Slower Growing, Less Mowing,.
the Innovation Academy. One of the Nation's most forward-looking undergraduate programs, the IA offers a select group of students the opportunity to choose from several majors offered by various colleges while concentrating on one minor: innovation.
The University ofFlorida Shellfish Aquaculture Extension and even your pet's health                                    UF horticulturist Dr. Russell Nagata isan unsung hero to countless Americans faced with the Programprovides educational, technical and organizational are all ina day's work at the                                  never-ending task of mowing the lawn. He created                    support to the clam forming industry inFlorida. In1995, a Captiva, a much slower-growing type of St.
With courses concentrating on creativity, entrepreneurship, ethics, andleadership, the program is designed to prepare students for living and working in today's global economy. Even its schedule is unique. Students are enrolled during the spring-summer academic year, leaving them free to pursue off-campus interests, including internships, during the fall semester.The 4,000 square-foot Innovation News Center at the UF College of Journalism and Communications houses state-of-the-art broadcasting equipment, television and radio editing rooms, audio booths, a mini-studio, and nearly 100 seats for reporters, producers and editors. It isalso home to the College's many distribution channels, which includes six radio and TV/stations serving North Central Florida.As Gatorade approaches its 50th birthday, the industiy-launching sports drink deserves recognition for the licensing income it continues to produce for the University of Florida. And that wasJust a start. Products that have evolved from UF labs to the marketplace continue to generate substantial revenue, which in turn is invested to fund further research.A Component Unit of the State of Florida I 11 150 trillion That's the number of calculations UF's new supercomputer can perform in one second.HiPerGator is the fastest computer in the State and one of the fastest in the countly.Its amazing speed and power can help researchers find life-saving drugs, forecast weather decades in advance, and even design more effective armor for troops.
University of Florida.                                        Augustinegrass. Captiva grows between one-and-                     position was createdwithin the UF/IFAS Extension to assist a-half and two-and-a-half inches a week, compared                    the emergent industry on ATastier Salad. UF's tomato breeding program with the three-to-five inches rate of typical grass.                  Florida's west coast.
Knowledge by the Numbers~,aa S 3 I'S .3 I ColIe/School Accounting Agricultural and Life Sciences Building Construction Business Administration Dentistry Design, Construction, and Planning Division of Continuing Education (A)Education Engineering Fine Arts Forest Resources and Conservation Health and Human Performance High School Interdisciplinary Ecology Journalism and Communications Law Liberal Arts and Sciences Medicine Multiple-College Program Natural Resources and Environment Nursing Pharmacy Pharmacy Doctor Physician Assistant Program Public Health & Health Professions Veterinary Medicine SUB-TOTAL 2012 2011 2010 2009 2O59 857 865 905 871 897 4,835 4,955 4,940 4,640 4,557 383 391 499 581 616 4,985 4,681 4,728 4,947 5,539 385 389 378 379 389 855 896 899 899 921 141 179 215 259 2751,732 1,749 1,886 1,919 1,940 8,716 8,454 8,240 7,880 7,6961,294 1,256 1,309 1,284 1,254---222 215 1,973 2,047 2,008 1,908 1,970 57 52 47 44 -33 104 116 127 135 131 2,693 2,540 2,516 2,663 2,9571,105 1,118 1,191 1,263 1,340 12,514 12,673 12,817 13,368 14,315 823 862 853 967 867 1 1 2 -120 155 154 158 1421,162 1,170 1,090 1,188 1,160 847 823 836 761 , 689 1,584 1,686 1,752 1,891 1,841 119 119 119 119 119 2,213 2,122 2,139 1,971 1,803 648 542 530 525 507 50,145 49,841 50,179 50,844 5ZI73 Minus Concurrent Degree 59 56 63 60 61 TOTAL 50,9 49,715 50,116 50,784 5ZI12 (A) Includes Continuing Education and correpondence courses for students not enrolled in a college.Source: Office of Institutional Planning and Research -UF Facts Degree 2012-13 2011-12 2010-11 2009-10 2008-09 Bachelor's Master's Doctor of Philosophy Doctor of Pharmacy Juris Doctor Doctor of Medicine Doctor of Dental Medicine Doctor of Veterinary Medicine Specialist in Education Engineer TOTAL8,245 8,600 8,685 9,302 9,207 3,929 3,924 3,878 3,751 3,546 880 859 936 957 841 427 461 484 483 474 361 334 410 377 424 131 134 127 130 124 79 82 83 91 81 86 84 87 89 84 88 71 70 111 73 14,226 14,549 14,760 115,29 1 4J8-... M -''Source: UF Office of Institutional Planning and Research 2012-2013 Annual Financial Report In-State Enrollment by County -Fall 2012 Total In-State Enrollment:
dates back to 1922. So when consumers craved Less mowing also means less fuel to buy. But that's a redder, tastier, juicier tomato, who better to not all. Captiva offers one additional benefit: Itis accept the challenge than our own horticulturists?
40,674 Source: Fall Final Student Data Course File Prepared by the UF Office of Institutional Planning & Research Research Awards by Sponsor for2012-13 fiscal year* Federal Agencies$416,588,245 SFlorida State Agencies 34,758,814 i Corporations
considerably more resistant than other varieties to After years of research, they created a naturally lawn-killing chinch bugs.
& Companies$70,858,140 Foundations
developed, vine-ripened hybrid and named it Tasti-Lee@. Salad and sandwich lovers have been                More Purrs. Cats do not have nine lives. So, to grateful ever since.                                          enhance the quality of their one precious life, UF researcher Dr. Janet Yamamoto developed Solutions for Your Life. Helping small farmers a feline AIDS vaccine. Her most recent research grow grapes innorthwest Florida. Organizing 4-H with the vaccine has revealed that the FIV protein camps that offer kids a place to experience and also stimulated human Tcells to produce anti-HIV                      Ina State thatproduces one appreciate nature. Educating residents about the activity. The connection between feline AIDS and HIV                  billionsquare feet of turfgrass importance of agriculture. Those are just a few of                                                                                  each year, there is literallya lot may eventually lead to a vaccine for humans and the ways that UF/IFAS Extension touches the lives                                                                                    ofground to cover.Adedicated an even better vaccine for cats. So, the furry felines of Floridians inall 67 counties. UF/IFAS Extension is                                                                                team of researchersat UF
& Societies$85,765,778 L ocal & Regional$6,828,182 SAll Other Sources$25,853,803 TOTAL$640,652,962 1%Changing Lives at Home.As the University of Florida delivers on its mission of research, teaching, and service, we will continue to attract the best and brightest students, as well as recruit and maintain preeminent faculty.UF provides students with a learning experience few other universities can offer, while we reward our faculty with the technology and funding needed to perform their remarkable work.And while we continue to affect the lives of people throughout the world, the University of Florida will forever keep a strong focus on the residents, leaders, and businesses in our State to ensure their constant well-being and quality of life.A Component Unit of the State of Florida I 13 Introduction from the Vice President and Chief Financial Officer I am pleased to present the University of Florida Annual Financial Report for the fiscal year ended June 30, 2013. This report provides useful information concerning the University's financialposition and activities for the year. The Management Discussion and Analysis, the financial statements, and the notes to the financial statements document the University's financial success and health for this fiscal year.During fiscal year 2012-13, Noncapital State Appropriations declined by 8.0%, or $42.4 million.In an effort to mitigate that loss, we continued to increase operational efficiencies, utilized sound budgeting, and had limited tuition increases.
                                                              - and the people they own - can look forward to dedicated to developing knowledge in agriculture,                                                                                   analyzes Florido'sgross, as well longer lives together.                                                as the soilbeneath it and pests human and natural resources, and the life sciences, that pose a constantthreat.
Tuition revenue increased
and to making that knowledge accessible inorder to sustain and enhance the quality of human life.
$38.5 million, or 8.3%for the fiscal year. The tuition increases helped offset the reduction in State Appropriations, but did not cover the nearly $4.0 million remaining in lost State support. Even with the tuition increases, the University continues to have among the lowest cost of attendance of all public research universities nationwide and continues to be a great value for the investment.
Each of Florida's67 counties has a UF/IFAS Extension office, which provides residents with scientificknowledge 07                to sustain and improve the quality of human life inareas rangingfrom agriculture, home gardening,and health and nutrition, to home finances, disasterpreparedness,and family relationships.UF/IFAS researchcenters and demonstrationsites around the State provide Floridaand the entireNotion with researchborne knowledge used to help farmers, ranchers,growers, and others feed the world.
The University continues to maintain its beautifuland historic campus in spite of the State's significant reductions in the amount of capital projects funding, including Public Education Capital Outlay (PECO).
AComponent Unit of the State of Florida I 5
2012-2013 Annual Financial Report Capital State Appropriations totaled $9.5 million, a slight increase of $3.4 million over the prior fiscal year of $6.1 million.During the year, several major constructionprojects were completed to provide facilities necessary for fulfilling the instructional, research,and service missions of the University.
 
These buildings illustrate the University's diverse nature.Completed construction projects include the Clinical Translational Research Building (CTRB). The CTRB is a new home for research that will speed scientific discoveries to patients.
5hwo' 1995. thaueks to the Soicn
The 120,000 square-foot complex will spark collaboration and spur medical advances by bringing together research teams from a range of scientific disciplines.
                                                                                                                                    ~omitocolny tir~who sstM.
The completed East Campus Data Center is home to HiPerGator, the University's new high performance supercomputer, which has a peak speed of 150 trillion calculations per second. The HiPerGator is the most powerful supercomputer in the State of Florida and will help researchers find life-saving drugs, make decades-long weather forecasts, and improve armor for our troops.The Lake Nona Research Facility opened November 30, 2012. This facility brings vital research on new therapies and cures, increased opportunities for participation in clinical research, and enhanced access to professional and graduate pharmacy education to the Orlando area.The Reitz Union Expansion and Renovation project started in June 2013. Built in 1967, the J. Wayne Reitz Union is the heart of campus, a center of studentactivities and involvement.
Science and technology                                        Longer Lasting Liberty. The proud lady has stood, torch in hand, inNew York generated inthe laboratories                                  Harbor since 1886. She, infact, may be the most iconic of all American statues and monuments.
The project includes the construction of a new 100,000 square-foot multilevel structure, and renovation of up to 50,000 square feet of the existing building.
at UF help produce one                                        But in1994, the Statue of Liberty had a problem:
The $75 million project is funded through a combination of activity and service fees, an investment from the University, a $41.5 million bond to be issued during the 2013-14 fiscal year, and other sources. Expected to be completed Fall 2015, the much needed space will accommodate student activities and the University's growing student body.Historic State legislation was passed this year, creating a path for the University to be designated a State University of Academic and Research Excellence and National Preeminence.
termites. Her condition worsened until 1996, when extremely valuable                                            Sentricon came to the rescue. Developed by University of Florida entomologists and DowElanco commodity: peace of mind.                                    (now Dow AgroSciences), Sentricon is an                      Extensive researchby OF engineers has enabled environmentally friendly termite control technology.           homebuildersto create safer, Our homes are safer. Our lives                               For nearly 20 years, Sentricon has been on the               sturdierstructures thatprotect job not only on Ellis Island, but also inhomes across          families duringsevere weather are healthier. And our hopes                                  the Nation, including a big white one at 1600                  andbetter withstand the test Pennsylvania Avenue.                                          of time.
House Bill 7129 provides tuition and academic flexibility to research universities that meet standards established in the bill for a State university of national preeminence.
are higher. Not just because ABetter View. Ittakes special skills to fly someone had a good idea, but                                  over crops and instantly send back video and because they also had the                                     stills for farmers to analyze and potentially detect disease, irrigation or fertilizer issues, predict crop passion to make itwork.                                       yields and more. And who would be willing to ride along with a hurricane, collecting data to help Sturdier Homes. Why would wind engineers                      scientists predict the intensity and trajectory of the at the University of Florida develop the world's             storm? Drones are capable of both assignments and largest portable hurricane simulator? Aren't                                                                                UF doesn'tjust study are on the job at the University of Florida. Equipped          hurricanes, we createthem.
The standards includeselectivity of admissions, student retention, graduation rates, size of endowment, amount of annual giving, faculty membership in a national academy, number of patents awarded, number of doctoral degrees awarded, number of postdoctoral appointees, research expenditures, and national rankings.
there enough real hurricanes already? That's                  with sensors and cameras, these unmanned aerial                Our hurricanesimulatorcan exactly why. By creating and controlling their own            vehicles are helping UF soar to new heights in                create the wind and rain hurricanes, UF engineers are able to experiment                research.                                                     producedby a Category-3 with building materials to determine which are the                                                                          storm to study its effects and most storm-resistant. The hurricane simulator can              Healthier Hospitals. Even a Gator can learn                  help buildersand residents alike more effectively prepare create the effects of a Category-3 (Katrina-sized)            from a shark. Dr. Anthony Brennan studied the for the real thing.
The Office of the Vice President and Chief Financial Officer is committed to manage effectively the University's assets and facilitate the business needs as the University progresses towards being a top ten research university.
storm, complete with wind and rain. So, while we'll          antimicrobial properties of sharkskin in hopes of probably never be able to prevent hurricanes, we              finding ways to reduce the buildup of barnacles can find better ways to prepare for them.                    on submarines. He and his team at the UF College of Engineering then replicated the microscopic diamond shapes to create the world's first technology to inhibit bacterial growth through pattern alone.
Matthew M. Fajack Vice President and Chief Financial Officer A Component Unit of the State of Florida I 15 AUDITOR GENERALA STATE OF FLORIDA G74 Claude Pepper Building DAVID W. MARTIN, CPA 111 West Madison Street PHONE: 850-412-2722AUDITOR GENERAL Tallahassee, Florida 32399-1450 FAX: 850-488-6975 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT Report on the Financial Statements We have audited the accompanying financial statements of the University of Florida, a component turit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal gyear ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements as listed in the table of contents.Management's Responsibilit for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the prepatation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.Auditot's Responsibiity Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the blended and the aggregate discretely presented component units, as described in note 1 to the financial statements.
That'sthe numberof cropsgrown and harvestedinFlorida,more than any otherstate in the Nation. It's also why food safety education is a criticalarea for UF'sInstitute of Food 300+                          andAgriculturalSciences. The UF/IFAS ServSafeO programhelps protect Floridaresidents andvisitors from foodborne illness by trainingfoodservicepersonnelinpropersanitation andfood handlingpractices.From 2007to 2012 the programcertified more than 2,700 participants,many of whom were able to secure better-payingjobs as aresult.                AComponent Unit of the State of Florida I 7
The financial statements of the University of Florida Self-Insurance Program and the University of Florida Healthcare Education Insurance Company, blended component units, represent 5.6 percent, 4.7 percent, and 1 percent, respectively, of the assets, net position, and revenues, reported for the University of Florida. The financial statements of the aggregate discretely presented component units represent 100 percent of the transactions and account balances of the aggregate discretely presented component units' columns. The financial statements of tie blended and aggregate discretely presented component umts were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the blended and aggregate discretely presented component units, is based solely on the reports of the other auditors.
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govern;etil Auditing Slandards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
( M, k.l pf~oients SeenJirlfh, LIE IipalteI Sharos P0,d/i~rnctEl
                                                                                                                                ..EYK!Z1O. 12 OT While not all inventions affect                            so, they paved the way for Banyan Biomarkers, the leader inblood test-based diagnostic products people immediately, directly                                for the detection of traumatic brain injuries.
Someday soon, physicians will know almost and personally, there isthat                                immediately the extent of a brain injury and will be able to treat - and even save the lives of - soldiers, select group of innovative                                  accident victims, and athletes.
achievements that have a                                    Faster Drying Tears. Achildren's emergency room                    Navy corpsmanEd Bonfiglio isprobably the last place a parent wants to go.
profound and lasting impact                                  But should the need arise, families inGainesville are fortunate to have the Pediatric ER at UF Health on the individuals they touch.                              Shands Hospital nearby. All UF Health pediatric teams are now located ina single building, with Insome cases, they change                                    a child-focused environment. This enables us to better serve our young patients and their families.
lives. Inothers, they save lives.                           The entrance welcomes them into fun and colorful Better Futures. AxoGen, Inc., provides critically            surroundings. Once inside, the children and young wounded soldiers with what they most deserve and            adults will experience quality, streamlined pediatric desire: a second chance. The University of Florida's        care so they can get back to their lives.
McKnight Brain Institute developed technologies for nerve grafting and regeneration. Marketed under              Greater fope. Quite often, people lack the ability the name Avance, the technique allows surgeons              to change their own lives as much as they'd like to reconstruct damaged peripheral nerves so that            to. Drug and alcohol addiction are formidable the central nervous system can communicate with              opponents. UF Health Florida Recovery Center muscles or organs throughout the body. When                  iskeenly aware of that and offers help to those Navy corpsman Ed Bonfiglio was shot inthe left leg          fighting substance abuse. The doctors, therapists, while on patrol inAfghanistan, doctors successfully          counselors and representatives have an intimate employed this procedure. As a result, Ed still has          understanding of recovery and help isavailable any both of his legs. And a much brighter future.                time of day, every day of the year. Affiliated with the UF Department of Psychiatry, the Center has a main ANew View of the Brain. Asimple blood test                  office near campus and four satellite offices serving to detect traumatic brain injuries? Ifthat sounds            the rest of Florida.                                                The UFHealthShands revolutionary, itis.Researchers at UF's McKnight                                                                                PediatricER Brain Institute discovered proteins from the breakdown of dying brain cells inblood. Indoing That's the amount UFspentin2011 on researchand development, rankingit 12th among the
$740m                      Nation's top publicresearchuniversities.Among the discoveriesthat have risenfrom the innovative and creative minds of UFresearchers:a test that uses peanutbutter to confirm anAlzheimer's diseasediagnosis;softball-sized satellitesthat con be built cheaply and launchedquickly; the Tasti-Lee@ tomato that can survive shipping and still taste great;the Sentricon Termite Colony EliminationSystem; the glaucomadrug Trusopt;and, of course, Gatorade.                          AComponent Unit of the State of Florida I 9
 
I I
 
wkholoies accovpted to?
90 Percent ofthe total for the entine Stoic doiversity system.,
UF has become afertile                                      its "community" an opportunity to collaborate with UF's 4,000 talented researchers, whose annual ground for innovation.                                      research awards total $641 million.
Not only isthe University a                                Faster Startups. Ifyou've ever heard the question, "Where do you come up with your ideas?"
springboard for new ideas,                                  some could answer, "At The Florida Innovation Hub at UF." Located inthe heart of Innovation products and businesses,                                    Square, this 48,000 square-foot facility serves The 4,000 square-foot InnovationNews Centerat as an incubator for startup companies based on            the UF College ofJournalism it's also changing the way                                  technologies emerging from UF laboratories.              and Communications houses By enabling businesses to devote their limited            state-of-the-artbroadcasting people responsible for that                                resources to technology and market development            equipment, television and radio editing rooms, audio rather than operational costs, Innovation Hub has innovation are learning and                                attracted more than two dozen startup tenants and booths, a mini-studio, and nearly 100 seats for reporters, led to the creation of 250 jobs in its first 20 months collaborating. Meanwhile, just                              of existence.
producersandeditors. It is also home to the College's many distributionchannels, ashort walk east of campus                                  AMinor Revolution. The spring semester of 2013            which includessix radio and TV/stations serving North will reveal how UF ischanging                              welcomed not only new students to the University of Florida but also an entirely new concept in CentralFlorida.
the landscape of higher                                    higher education: the Innovation Academy. One of the Nation's most forward-looking undergraduate education. And Gainesville.                                programs, the IAoffers a select group of students the opportunity to choose from several majors Community Redefined. This is Innovation                    offered by various colleges while concentrating on Square at the University of Florida. People work            one minor: innovation. With courses concentrating here, and soon people will live and play here, too.        on creativity, entrepreneurship, ethics, and A40-acre research community, Innovation Square              leadership, the program is designed to prepare has created an environment where synergy is                students for living and working intoday's global inevitable. Where the line between social and              economy. Even its schedule is unique. Students are        As Gatoradeapproachesits business interactions has been virtually erased.                                                                      50th birthday,the industiy-enrolled during the spring-summer academic year,          launching sportsdrink Where diverse individuals and ideas come                    leaving them free to pursue off-campus interests,        deserves recognitionfor the together to create even greater ideas. And where            including internships, during the fall semester.          licensing income it continues products move from the mind to the marketplace.                                                                        to produce for the University Innovation Square also provides the residents of                                                                      of Florida.And that wasJust a start.Products thathave evolved from UFlabs to the marketplace continue to generate substantialrevenue, which inturn is invested to 150 trillion That's the number ofcalculations UF'snew supercomputercan perform inone second.
HiPerGatoris the fastest computer inthe State and one of the fastest inthe countly.
Its amazingspeed andpower can help researchersfind life-saving drugs, forecast weather decadesinadvance, and even design more effective armorfor troops.
fund furtherresearch.
AComponent Unitof the State of Florida I 11
 
Knowledge by the Numbers
                                ~,aa3    I'S  S .3            I ColIe/School                                                2012        2011      2010        2009      2O59 Accounting                                                      857        865      905          871        897 Agricultural and Life Sciences                              4,835        4,955    4,940        4,640      4,557 Building Construction                                          383        391      499          581      616 Business Administration                                    4,985        4,681    4,728        4,947      5,539 Dentistry                                                      385        389      378          379        389 Design, Construction, and Planning                              855        896      899          899        921 Division of Continuing Education (A)                            141        179      215          259        275 Education                                                  1,732        1,749    1,886        1,919      1,940 Engineering                                                8,716        8,454    8,240        7,880      7,696 Fine Arts                                                  1,294        1,256    1,309        1,284      1,254 Forest Resources and Conservation                                    -        -        -        222        215 Health and Human Performance                                1,973        2,047    2,008        1,908      1,970 High School                                                        57        52        47          44      -33 Interdisciplinary Ecology                                        104        116      127          135        131 Journalism and Communications                              2,693        2,540    2,516        2,663      2,957 Law                                                        1,105        1,118    1,191        1,263      1,340 Liberal Arts and Sciences                                  12,514      12,673    12,817      13,368      14,315 Medicine                                                        823        862      853          967        867 Multiple-College Program                                                      1        1            2          -
Natural Resources and Environment                                120        155      154          158        142 Nursing                                                    1,162        1,170    1,090        1,188      1,160 Pharmacy                                                        847        823      836          761  , 689 Pharmacy Doctor                                            1,584        1,686    1,752        1,891      1,841 Physician Assistant Program                                      119        119      119          119        119 Public Health & Health Professions                          2,213        2,122    2,139        1,971      1,803 Veterinary Medicine                                              648        542      530          525        507 SUB-TOTAL                                                  50,145      49,841    50,179      50,844      5ZI73 Minus Concurrent Degree                                            59        56        63          60          61 TOTAL                                                      50,9        49,715    50,116      50,784      5ZI12 (A)Includes Continuing Education and correpondence courses for students not enrolled in a college.
Source: Office of Institutional Planning and Research - UF Facts Degree                                                    2012-13      2011-12  2010-11    2009-10      2008-09 Bachelor's                                                  8,245        8,600    8,685        9,302      9,207 Master's                                                    3,929      3,924      3,878      3,751      3,546 Doctor of Philosophy                                            880        859      936          957        841 Doctor of Pharmacy                                              427        461      484          483        474 Juris Doctor                                                    361        334      410          377        424 Doctor of Medicine                                              131      134      127          130        124 Doctor of Dental Medicine                                        79        82        83          91        81 Doctor of Veterinary Medicine                                    86        84        87          89        84 Specialist in Education                                          88        71        70          111          73 Engineer TOTAL                                                      14,226      14,549    14,760      115,29  1 4J8
                                                              -        ...M              -''
Source: UF Office of Institutional Planning and Research
 
2012-2013 Annual FinancialReport In-State Enrollment by County -Fall 2012 Total In-State Enrollment:
40,674 Source: Fall Final Student Data Course File Prepared by the UF Office of Institutional Planning & Research Research Awards by Sponsor for                        1%
2012-13 fiscal year
* Federal Agencies
          $416,588,245 SFlorida State Agencies 34,758,814 i      Corporations &Companies
          $70,858,140 Foundations &Societies
          $85,765,778 Local &Regional
          $6,828,182 SAll$25,853,803 Other Sources TOTAL
          $640,652,962 Changing Lives at Home.
As the University of Florida delivers on its        And while we continue to affect the lives of people mission of research, teaching, and service, we will  throughout the world, the University of Florida continue to attract the best and brightest students, will forever keep a strong focus on the residents, as well as recruit and maintain preeminent faculty. leaders, and businesses in our State to ensure their UF provides students with a learning experience      constant well-being and quality of life.
few other universities can offer, while we reward our faculty with the technology and funding needed to perform their remarkable work.
AComponent Unitof the State of Florida I 13
 
Introduction from the Vice President and Chief Financial Officer I am pleased to present the University of Florida Annual Financial Report for the fiscal year ended June 30, 2013. This report provides useful information concerning the University's financial position and activities for the year. The Management Discussion and Analysis, the financial statements, and the notes to the financial statements document the University's financial success and health for this fiscal year.
During fiscal year 2012-13, Noncapital State Appropriations declined by 8.0%, or $42.4 million.
Inan effort to mitigate that loss, we continued to increase operational efficiencies, utilized sound budgeting, and had limited tuition increases.
Tuition revenue increased $38.5 million, or 8.3%
for the fiscal year. The tuition increases helped offset the reduction inState Appropriations, but did not cover the nearly $4.0 million remaining in lost State support. Even with the tuition increases, the University continues to have among the lowest cost of attendance of all public research universities nationwide and continues to be a great value for the investment.
The University continues to maintain its beautiful and historic campus inspite of the State's significant reductions inthe amount of capital projects funding, including Public Education Capital Outlay (PECO).
 
2012-2013 Annual FinancialReport Capital State Appropriations totaled $9.5 million, a  construction of a new 100,000 square-foot multilevel slight increase of $3.4 million over the prior fiscal  structure, and renovation of up to 50,000 square year of $6.1 million.                                  feet of the existing building. The $75 million project During the year, several major construction            isfunded through a combination of activity and projects were completed to provide facilities          service fees, an investment from the University, necessary for fulfilling the instructional, research,  a $41.5 million bond to be issued during the 2013-14 and service missions of the University. These          fiscal year, and other sources. Expected to be buildings illustrate the University's diverse nature. completed Fall 2015, the much needed space will accommodate student activities and the University's Completed construction projects include the Clinical Translational Research Building (CTRB). The CTRB is    growing student body.
a new home for research that will speed scientific    Historic State legislation was passed this year, discoveries to patients. The 120,000 square-foot      creating a path for the University to be designated complex will spark collaboration and spur medical      a State University of Academic and Research advances by bringing together research teams from      Excellence and National Preeminence. House a range of scientific disciplines.                    Bill 7129 provides tuition and academic flexibility The completed East Campus Data Center ishome to        to research universities that meet standards HiPerGator, the University's new high performance      established inthe bill for a State university of supercomputer, which has a peak speed of 150          national preeminence. The standards include trillion calculations per second. The HiPerGator isthe selectivity of admissions, student retention, graduation rates, size of endowment, amount of annual giving, most powerful supercomputer inthe State of Florida faculty membership ina national academy, number and will help researchers find life-saving drugs, make decades-long weather forecasts, and improve      of patents awarded, number of doctoral degrees awarded, number of postdoctoral appointees, research armor for our troops.
expenditures, and national rankings.
The Lake Nona Research Facility opened November 30, 2012. This facility brings vital research on new  The Office of the Vice President and Chief Financial therapies and cures, increased opportunities for      Officer is committed to manage effectively the participation inclinical research, and enhanced        University's assets and facilitate the business needs access to professional and graduate pharmacy          as the University progresses towards being a top ten education to the Orlando area.                        research university.
The Reitz Union Expansion and Renovation project started inJune 2013. Built in1967, the J.Wayne Reitz Union isthe heart of campus, a center of student activities and involvement. The project includes the Matthew M.Fajack Vice Presidentand Chief FinancialOfficer AComponent Unitof the State of Florida I 15
 
AUDITOR GENERALA STATE OF FLORIDA G74 Claude Pepper Building DAVID W. MARTIN, CPA                            111 West Madison Street                                        PHONE: 850-412-2722 AUDITOR GENERAL                        Tallahassee, Florida 32399-1450                                    FAX: 850-488-6975 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT Report on the Financial Statements We have audited the accompanying financial statements of the University of Florida, a component turit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal gyear ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements as listed in the table of contents.
Management'sResponsibilit for the FinancialStatements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the prepatation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditot's Responsibiity Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the blended and the aggregate discretely presented component units, as described in note 1 to the financial statements. The financial statements of the University of Florida Self-Insurance Program and the University of Florida Healthcare Education Insurance Company, blended component units, represent 5.6 percent, 4.7 percent, and 1 percent, respectively, of the assets, net position, and revenues, reported for the University of Florida. The financial statements of the aggregate discretely presented component units represent 100 percent of the transactions and account balances of the aggregate discretely presented component units' columns. The financial statements of tie blended and aggregate discretely presented component umts were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the blended and aggregate discretely presented component units, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govern;etil Auditing Slandards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.16 I University of Florida 2012-2013 Annual Financial Report Opinions In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented component units as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the fiscal year then ended, in accordance with accounting principles generally accepted in the United States of America.Report on Partial Comparative Information We have previously audited the University of Florida's 2011-12 fiscal year financial statements, and we expressed an umnodified audit opinion on those audited financial statements in our report dated December 13, 2012. In our opinion, the partial comparative information presented herein as of and for the fiscal year ended June 30, 2012, is consistent, in all material respects, with the audited financial statements from wlhich it has been derived.Other Matters Required Supp/ementag, Infonnation Accounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSION AND ANALYSIS and the SCHEDULE OF FUNDING PROGRESS -OTHER POSTEMPLOYMENT BENEFITS PLAN, as listed in the table of contents, be presented to supplement the basic financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, whiich consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
16 I University of Florida
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.
 
Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University of Florida's basic financial statements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
2012-2013 Annual FinancialReport Opinions In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented component units as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the fiscal year then ended, in accordance with accounting principles generally accepted in the United States of America.
The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued a report on our consideration of the University of Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements and other matters included under the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS.
Report on PartialComparativeInformation We have previously audited the University of Florida's 2011-12 fiscal year financial statements, and we expressed an umnodified audit opinion on those audited financial statements in our report dated December 13, 2012. In our opinion, the partial comparative information presented herein as of and for the fiscal year ended June 30, 2012, is consistent, in all material respects, with the audited financial statements from wlhich it has been derived.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.
OtherMatters Required Supp/ementag,Infonnation Accounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSION AND ANALYSIS and the SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS PLAN, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, whiich consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University of Florida's internal control over financial reporting and compliance.
Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University of Florida's basic financial statements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 A Component Unit of the State of Florida 1 17 MD9A Management's Discussion and Analysis From the Vice President and Chief Financial Officer INTRODUCTION AND BACKGROUND NANC HIWIUCTS The Managernent~s Discussion and Analysis (Mfl&A) prvds The University's assets totaled $3.04 billion at June 30, 2013.an overview of the financial position and activities of the This balance reflects a $4807 million, or 1.6%, increase from the University of Florida (the University) for the fiscal year ended 2011-12 fiscal year. The increase inassets primarily resulted from June 30, 2013, and should be read in conjunction the new investments held bythe Unive on behalf of component financial statements and notes thereto. This is unts- While total assets reased liabilities also increased required by Governental AccountingStandardsBoard (GASB) by $66.o million or io.9%, totaling $672.3 million at June 3o, Statement No. 35, Basic Financial Statements
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued a report on our consideration of the University of Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements and other matters included under the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the University of Florida's internal control over financial reporting and compliance.
-and Management's 2013, as a result of a $65.3 imilion increase in the amount Due Discussioand for Public Colleges and Universities, as To Component Units. In consequence, the University's net am.ened by GASB Statem.nts Nos. 37 and 38. The MD&A and position decreasedhby  
Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 AComponent Unit of the State of Florida 1 17
$17.3 million, or 0,7%, resulting in a year-financial statements and notes thereto, are the responsibility of end balance of $2.37 billion. Net position represents the residual University management.
 
interest in the University's assets after deducting liabilities.
MD9A Management's Discussion and Analysis From the Vice President and Chief Financial Officer INTRODUCTION AND BACKGROUND                                         NANC           HIWIUCTS The Managernent~s Discussion and Analysis (Mfl&A) prvds           The University's assets totaled $3.04 billion at June     30, 2013.
The University's comparative total net position by category for the fiscal years ended June 30, 2013, and 2012, are shown in the following chart 1 Universit s ioni ilos 2011-12 fiscal year. M ts of 201- 1 this in(reven Net thresh MDSA The University had significant construction activity during the year. Completed or substantialy completed constrution projects included: (i) Lake Nona Research Facility (capitalized costs of $50.9 million);
an overview of the financial position and activities of the       This balance reflects a $4807 million, or 1.6%, increase from the University of Florida (the University) for the fiscal year ended 2011-12 fiscal year. The increase inassets primarily resulted from June 30, 2013, and should be read in conjunction w*t* the         new investments held bythe Unive           on behalf of component financial statements and notes thereto. This                   is unts- While     total assets   reased   liabilities also increased required by Governental AccountingStandardsBoard (GASB)           by $66.o million or io.9%, totaling $672.3 million at June 3o, Statement No. 35, Basic FinancialStatements - and Management's   2013, as a result of a $65.3 imilion increase in the amount Due Discussioand Analys*is for Public Colleges and Universities, as   To Component Units. In consequence, the University's net am.ened by GASB Statem.nts Nos. 37 and 38. The MD&A and           position decreasedhby $17.3 million, or 0,7%, resulting in a year-financial statements and notes thereto, are the responsibility of end balance of $2.37 billion. Net position represents the residual University management.                                           interest in the University's assets after deducting liabilities. The University's comparative total net position by category for the fiscal years ended June 30, 2013, and 2012, are shown in the following chart 1 Universit
(2) Clinical Translational Research Building including the Institute on Aging Research Building (capitalized costs of $41.7 milhion);
 
and (3) East Campus Data Center (capitalized costs of $14.1 million).
s ioni   ilos 2011-12 fiscal year. M   ts of         201- 1 this in(
Construction began or continues on several major projects, including four that, when finished, will be capitalized at over $2oi million: (i)Reitz Union Expansion and Renovation; (2) Chemical Biology Buflding -Chemistry; (3) Harrell Medical Education Building;and (4) Heavener Hall- School of Business.OVERVIEW OF FINANCIAL STATEMENTS Pursuant to GASB Statement No. 35, the University's financial report includes three basic financial statements:
reven Net non*
the Statement of Net Position; the Statement of Revenues, Expenses, and Changes in Net Position; and the Statement of Cash Flows. The financial statements and notes thereto, encompass the University and its component units, Based upon the application of criteria for determining component units, the University of Florida Self-Insurance Program (the Program), and the University of Florida Healthcare Education Insurance Corporation (HEIC), are included within the University reporting entity as Wended component units.Additional information regarding the blended component units is presented in Notes i and 19 to the financial statements.
thresh
In addition, the University's basic financial statements include discretely presented component units categorized as follows: finacial statements.
 
This MD&A focuses on the University, excluding the discretely presented component units. MD&A information regarding the component units is included in their separately issued audit reports, if reporting under GASB standards.
MDSA The University had significant construction activity during       finacial statements. This MD&A focuses on the University, the year. Completed or substantialy completed constrution         excluding the discretely presented component units. MD&A projects included: (i) Lake Nona Research Facility (capitalized   information regarding the component units is included costs of $50.9 million); (2) Clinical Translational Research       in their separately issued audit reports, if reporting under Building including the Institute on Aging Research Building       GASB standards. Component units reporting under Financial (capitalized costs of $41.7 milhion); and (3) East Campus Data     Accounting Standards Board (FASB) standards do not include an Center (capitalized costs of $14.1 million). Construction began   MD&A in their audit reports.
Component units reporting under Financial Accounting Standards Board (FASB) standards do not include an MD&A in their audit reports.The financial statements characterize revenues and expenses as either operating or nonoperating.
or continues on several major projects, including four that, The financial statements characterize revenues and expenses when finished, will be capitalized at over $2oi million: (i) as either operating or nonoperating. The principal component Reitz Union Expansion and Renovation; (2) Chemical Biology         of operating revenues is Grants and Contracts ($i.i billion).
The principal component of operating revenues is Grants and Contracts
Buflding - Chemistry; (3) Harrell Medical Education Building; The principal component of operating expenses is Employee and (4) Heavener Hall- School of Business.                         Compensation and Benefits ($1.6 billion). A significant portion of the University's anticipated, recurring resources is considered nonoperating as defined by GASB Statement No. 35. The OVERVIEW OF FINANCIAL STATEMENTS                                  principal component of nonoperating revenues for the fiscal year ended June 30, 201 3, is Noncapital State Appropriations ($485 Pursuant to GASB Statement No. 35, the University's financial million). Recurring nonoperating expenses consist primarily of report includes three basic financial statements: the Statement of Other Nonoperating Expenses which includes transfers from the Net Position; the Statement of Revenues, Expenses, and Changes University to    its component units.
($i.i billion).The principal component of operating expenses is Employee Compensation and Benefits ($1.6 billion).
in Net Position; and the Statement of Cash Flows. The financial statements and notes thereto, encompass the University and its component units, Based upon the application of criteria for determining STATEMENT OF NET POSITION component units, the University of Florida Self-Insurance          The Statement of Net Position reflects the assets and liabilities Program (the Program), and the University of Florida Healthcare    of the University, using the accrual basis of accounting, and Education Insurance Corporation (HEIC), are included within        presents the financial position of the University at a specified the University reporting entity as Wended component units.        time. Net position, the difference between total assets and total Additional information regarding the blended component units       liabilities, is one indicator of the University's current financial is presented in Notes i and 19 to the financial statements.       condition. The changes in net position that occur over time indicate improvement or deterioration in the University's In addition, the University's basic financial statements include financial condition. The following table summarizes the discretely presented component units categorized as follows:
A significant portionof the University's anticipated, recurring resources is considered nonoperating as defined by GASB Statement No. 35. The principal component of nonoperating revenues for the fiscal year ended June 30, 201 3 , is Noncapital State Appropriations
University's assets, liabilities, and net position at June 30:
($485 million).
DirectSupport Organizations          - These are separate, not-for-profit corporations organized and operated exclusively to assist the University in achieving excellence by providing        Will I  1 -111 __
Recurring nonoperating expenses consist primarily of Other Nonoperating Expenses which includes transfers from the University to its component units.STATEMENT OF NET POSITION The Statement of Net Position reflects the assets and liabilitiesof the University, using the accrual basis of accounting, andpresents the financial position of the University at a specified time. Net position, the difference between total assets and total liabilities, is one indicator of the University's current financial condition.
Health Science Center at the Umversity ot      orlomla.
The changes in net position that occur over time indicate improvement or deterioration in the University's financial condition. The following table summarizes the University's assets, liabilities, and net position at June 30: DirectSupport Organizations
Information regarding the discretely presented c(
-These are separate, not-for-profit corporations organized and operated exclusively to assist the University in achieving excellence by providing Will I 1 -111 __Health Science Center at the Umversity ot orlomla.Information regarding the discretely presented c(units, including summaries of their separately issuec statements, is presented in Notes 1, 2, 3, 6, 9, 12, and 20I Untversltyofflorfdo 202-01 Atia lW0MncdaRepor EXPENSES, AND operating expenses ýth',ýTbdne Staemet ofRvne, xess an Chne in Net P sito iiiifo ich s.Oprtn ~n ilos or tra during the Oea tin Reene Onmllos'f Florid f 21 HHOA that about the iurces and 11 assist in ash flows,=ome due, operating:tivities of financing assets, an(iiversity e: rs to co: anoý,- in eirectoitnese cnanges mcreasea net nonoperaung revenue Dyz5.i n-ffllionr The following summarizes the University's nonoperating revenues and expenses for the 2o0 2-13 and 2011 -12 fiscal years:
units, including summaries of their separately issuec statements, is presented in Notes  1, 2, 3, 6, 9,  12, and 20I Untversltyofflorfdo
long-term debt. Cash flovthe net source and use of sales of investments and ir Cash flows from noncapit activities not covered in th(Major sources of fund I on ,s and nents.those* *($1,567.1 S ($523.9 al Assets flows for*Cn * ~ n ol Cas Flw (i ilos EXPENSES, isom in Cai Appro 3 and 2011-121 J8 Ote Reeus Exess G! aI Or ossai7mljt CAPITAL 71 a W itments till millions]for net capital assets of $1.7 billion. Depreciatio current fiscal year totaled $121.4 million. The summarizes the University's capital assets, net depreciation, at June 30o nding WOA li q. * .ýCAPITAL EXPENSES AND COMMITMENTS Major capital expenses were incurred on the foll MDSA support ot the Legislature, Govemor, board ot and r %0,W # -14 141 W .,f M9 IWIV.Trustees for this important strategic goal. The s d t Questions concerning information provided in the MD&A designation include criteria based on spenidming onrsear1ch, six- or other required supplementary information, and financial year graduation rates, number of doctoral degrees awarded, and statements and notesthereto, orrequests for additional financial number of patents awarded. Lawmakers allocated  
 
$15 million information should be addressed to Michael V. McKee, Assistant annually for the next five years to support the University Vice President and University Controller, P.O. Box 113200, in its goal of joining the Natiorn' top ten public research Gainesville, Florida 32611.universities.
lW0MncdaRepor 202-01 Atia EXPENSES, AND operating expenses ý th'
The University will match these funds dollar-for-dollar through private fundraising, dedicating  
    ,ýTbdne  Staemet    ofRvne,         xess                                  ich an    Chne    in Net P    sito iiiifo s.Oprtn ~n ilos or tra during the Oea tin Reene Onmllos
$30 million 24 1 Uni1versity 20o12.2013 Annual FnanckialReport STAEMET O NET POITIO aso ue3,0I onsxrssdntosns U~slveefy ofFloida -ConporentUrifs(FYin2013J 2012 Organiation
                                                                                            'fFlorid f 21
__________
 
and______ASSETS Cash nd Cash Equivalents (Note 1)Inv-tnt e 3)Accounts Receivable, Not (Noe 4)Loans and Notes Receivable, Net (Note 4)Due From State (Note 5)Due From Component Units/University (NoteS )Inventories (Note 7)Other Current Assets NomTiet Aeeab Restricted Cash and Cash Equivalents (Note 1)Restricted Investments (Note 3)Loans and Notes Receivable, Net (Note 4)Depreiable Capital Assets, Not (Note8)Nomjepreciable Capital Assets (NoteS8)Other Noncurrent Assets Toa o~wutourw satwocs TOTNAL A33 DIFRRE OUTFLOWS OFIRESOURCE Accumulated Decrease in Fair Value of Interest Rate Swap Agreements TOTAL ASSETS AND iDEEPiRRED OUTO OF URCS LIABlNM Accounts Payable Salaries and Wages Payable uToTComponent Units/University (Note 6)Unearned Revenue INote 10)Deposits Held in Custody Other Current Liabilities (Note 11)Long-Term Liabilities  
HHOA that                                                                                        about the iurces and 11assist in ash flows,
-Current Portion: (Note 12)Capital Improvement Debt PayableBonds Payable Installment Purchase Agreements Payable Capital Leases Payable Compensated Absences Payable Liability for Self-Insured Claims toneueart Uilitih (Note 12)Capital Improvement Debt Payable Bonds Payable Loans and Notes Payable Installment Purchase Agreements Payable Capital Leases Payable Compensated Absences Payable Other Postempioyment Benefits Payable Liability for Salf-Insured ClaimtOther Noncurrent Liabilities TintlNneuuen Lablities TOTAL uIA11IJIHES NETPOSITION Net Investment in Capital Assets Restricted:
                                                                                                                                    =ome due, assets, an(       rs to co:                                                                                      operating
:tivities of iiversity e:          ano              ý,- in financing long-term debt. Cash flov the net source and use of                                 ,s and eirectoitnese cnanges mcreasea net nonoperaung revenue Dyz5.i sales of investments and ir            I on              nents.
n-ffllionr The following summarizes the University's nonoperating Cash flows from noncapit                                  those revenues and expenses for the       2o0 2-13 and 2011 -12   fiscal years:
activities not covered in th(
Major     sources of fund
          *   *
($1,567.1 S ($523.9 al Assets flows for
                                                                                    *Cn*       ~         n ol Cas Flw     (i ilos EXPENSES, isom in Cai             Appro 3 and 2011-121 J8 Ote       Reeus     Exess           G!     aI Or   ossai7mljt
 
CAPITAL 71 a W itments till millions]
for net capital assets of $1.7 billion. Depreciatio current fiscal year totaled $121.4 million. The summarizes the University's capital assets, net depreciation, at June 30o nding
* WOA
                                                          .ý   li  q.
CAPITAL EXPENSES AND COMMITMENTS Major capital expenses were incurred on the foll
 
MDSA support ot the Legislature, Govemor, board ot*,.overnors, and               r %0,W
                                                                                                # -14.,f 141 W  M9IWIV.
Trustees for this important strategic goal. The s d         t     Questions concerning information provided in the MD&A designation include criteria based on spenidming onrsear1ch, six- or other required supplementary information, and financial year graduation rates, number of doctoral degrees awarded, and   statements and notesthereto, orrequests for additional financial number of patents awarded. Lawmakers allocated $15 million       information should be addressed to Michael V.McKee, Assistant annually for the next five years to support the University       Vice President and University Controller, P.O. Box 113200, in its goal of joining the Natiorn' top ten public research       Gainesville, Florida 32611.
universities. The University will match these funds dollar-for-dollar through private fundraising, dedicating $30 million 24 1 Uni1versity
 
20o12.2013 Annual FnanckialReport STAEMET O NET POITIO                         aso     ue3,0I       onsxrssdntosns U~slveefy ofFloida                       -ConporentUrifs(FYin2013J 231              2012   Organiation         __________       and______
ASSETS Cash nd Cash Equivalents (Note 1)                               $        285  $            503 $        29,405  S        63,591  $          79,734 Inv-tnt             e 3)                                         1,071,094            987,024          196,484            2,469          212,855 Accounts Receivable, Not (Noe 4)                                     90,802            145,382          99,848            56,138          2M3275 Loans and Notes Receivable, Net (Note 4)                               2,821              3,155 Due From State (Note 5)                                               14,795            31,535 101.885 5,185 Due From Component Units/University (NoteS )                                             13,320                            5,253            14,386 Inventories (Note 7)                                                   4,570              4,(80              37            3*2              2ZS95 Other Current Assets                                                   1,984              1,824          6,121            3,812            57,576 1^213A34                              43X,0 NomTiet Aeeab 19,500 Restricted Cash and Cash Equivalents (Note 1)                             21                  16          10,441 Restricted Investments (Note 3)                                     104,053            100.7          1,M00,407            1727            316,093 Loans and Notes Receivable, Net (Note 4)                             36,375            37,491 Depreiable Capital Assets, Not (Note8)                                               1,549,324          18Z,459            65,3M0          748,848 127,797 Nomjepreciable Capital Assets (NoteS8)                               53,072 1,4s 116,3'9          74,076            6,147 Other Noncurrent Assets                                                                   1,128            182            7,568          226,153 WA7w Toao~wutourw satwocs TOTNAL A33 DIFRRE OUTFLOWS OFIRESOURCE Accumulated Decrease in Fair Value of                             S 3., MII Interest Rate Swap Agreements                                                                                                                 39,425 TOTAL ASSETS AND iDEEPiRRED       OUTO       OF     URCS         $ U6,91.      $    ZE                                            S      z.I3M LIABlNM Accounts Payable                                                               $        75A033  $        13,373  $        10,804  S        198,037 Salaries and Wages Payable                                           19,252              19286            2,389                              63,604 uToTComponent Units/University (Note 6)                             80,174            14,863          68,502            4,948 Unearned Revenue INote 10)                                           25,430            25,575          58,466            1,600 Deposits Held in Custody                                             16,8*6              9,610            500                38 Other Current Liabilities (Note 11)                                   7,133              8,349          17,108              262 Long-Term Liabilities - Current Portion: (Note 12)
Capital Improvement Debt Payable                                   7,307              6,919 Bonds Payable                                                                                        26,685            1.975            23,07 Installment Purchase Agreements Payable                             846                868 Capital Leases Payable                                               129                  74                              186              2,M8 Compensated Absences Payable                                       9,143              7,243            300            5,530 Liability for Self-Insured Claims                                 11,596              15,440          12,125 W.97 toneueart Uilitih (Note 12)
Capital Improvement Debt Payable                                     112,094            119,385 Bonds Payable                                                                                             91,210            37,M4            721,324 Loans and Notes Payable                                                                                                     8,000 Installment Purchase Agreements Payable                                 772              1,077 Capital Leases Payable                                                                     3,076                              516              6,756 Compensated Absences Payable                                         104,3M6            90,621            2,8%
Other Postempioyment Benefits Payable                               139,775            102Z458                                                2,040 Liability for Salf-Insured Claimt                                    44,551            87,39 Other Noncurrent Liabilities                                         18,768              19,10M          30,742                              89,181 TintlNneuuen Lablities                                                                                                         456              1UP*
TOTAL uIA11IJIHES 12Lum 7Z112 NETPOSITION Net Investment in Capital Assets                                     1,554,445          1,5*70,17          119,977            23,781          283,259 Restricted:
Nonexpendable:
Nonexpendable:
Endowment Endowment Capital Projects DebtService Other Unrestricted TOTAL ET PosnloM TOTAL UARJ11W AND NET POSM0N The coppnying notes am amn t pW o se f inanci als rnmenM 231$ 285 1,071,094 90,802 2,821 14,795 4,570 1,984 1^213A34 21 104,053 36,375 53,072 1,4s WA7w S 3., MII$ U6,91.19,252 80,174 25,430 7,133 7,307 846 129 9,143 11,596 112,094 772 104,3M6 139,775 44,551 18,768$ 503 987,024 145,382 3,155 31,535 13,320 4,(80 1,824 16 100.7 37,491 1,549,324 116,3'9 1,128$ ZE$ 75A033 19286 14,863 25,575 9,610 8,349 6,919 868 74 7,243 15,440 119,385 1,077 3,076 90,621 102Z458 87,39 19,10M$ 29,405 196,484 99,848 101.885 37 6,121 43X,0 10,441 1,M00,407 18Z,459 74,076 182$ 13,373 2,389 68,502 58,466 500 17,108 26,685 300 12,125 91,210 2,8%30,742 12Lum S 63,591 2,469 56,138 5,253 3,812 1727 65,3M0 6,147 7,568$ 10,804 4,948 1,600 38 262 1.975 186 5,530 37,M4 8,000 516 456 7Z112$ 79,734 212,855 2M3275 5,185 14,386 2ZS95 57,576 19,500 316,093 748,848 127,797 226,153 39,425 S z.I3M S 198,037 63,604 23,07 2,M8 W.97 721,324 6,756 2,040 89,181283,259 97 11,244 741,634$ ziz&m 1,554,445 119,977 23,781 35.653 64,217 W53 SNO9B 119,303 Z,3%1M1$ 54A1Sl 30,088 47,251 5,289 568,081 161,189 Z935M=1,183,839 261,911 309,341 125,162 1AN 8 Z39SM__14092E A Componenlt of State of F/rida 1 25 asi FinalStatements 2 312-13 2MI-12 Organizations Afiiats adod Student Tuition and Fees $ 500,508 $ 462,050 $ -$ -$Scholarship Allowances (148,064) 141,554)-Student Tuition and Fees, Net of Scholarship AlIowa nces : Z" 34 Federal Grants end Contracts 391,53M 408,728 .-State and Local Grants and Contracts 44,783 43,085 --Nongovernmental Grants and Contracts 643,612 604,723 -Sales and Services ofAuxliary Enterrises (Note 13) 131,350 129,369 --Sales and Services of Educational Departments 51,555 47,771 --Sales and Services of Component Units -113,186 : Hospital Revenues --5W0386 1,=30,629 Gifts and Donations
Endowment                                                                                         1,183,839                                  97 Endowment                                                                           30,088 261,911                              11,244 35.653 Capital Projects                                                 64,217            47,251 5,289 DebtService                                                         W53                            309,341 Other                                                           SNO9B              568,081 Unrestricted                                                            119,303            161,189          125,162                            741,634 TOTAL ET PosnloM                                                     Z,3%1M1            Z935M=            1AN          __14092E TOTAL UARJ11W AND NET POSM0N                                       $ 54A1Sl                          8 Z39SM                          $      ziz&m The coppnying       notes am amnt      pW of  se inancials rnmenM A Componenltof      State of F/rida 125
-Component Units 84,290 9,642 Royalties and Licensing Fees -Component Units -24,897 .Interest on Loans and Notes Receivable 976 998 --Other Operating Revenues 2,524 2,288 10,444 8,169 52,483 TotaluOperaingRees 1,61171 1)57,8 232,817 197... 1,603,112 Employee Compensation and Benefits 1,619,W8 1,522,935
 
--Services and Supplies 460,776 446,578 -Utities and Communications 64,748 65,675 --I~. ~ A~......---U .-
asi FinalStatements 2312-13        2MI-12      Organizations      Afiiats      adod Student Tuition and Fees                                          $     500,508    $  462,050    $            -  $          -    $
I..- O' MlA oh oifl GisborLs--
Scholarship Allowances                                                  (148,064)        141,554)-
410,717)Capital State Appropriations 9,484 Ci ,ta tcts, Donations, and Student Fees 13,922 AdtostoPermanet Endowments
Student Tuition and Fees, Net of Scholarship AlIowa nces                            :  34 Z"
-Increase.(Decrase) in Nt ePouitlo (17=22)Adjustmentto Beginning Nat Position (Note 2)Nat Positio, End of Yew $ ta o s a s The acompanying notes are an integral part of these financial statemnnts.
Federal Grants end Contracts                                            391,53M        408,728      .                         -
26 I lnAersly of Florid 201-2 203 ArrnudFlnancical Repoft Uni Wversityof Florida M213. 2011-12 CASH ROM FROM OPERATING ACTIVITIES Tujition and Fees, Net $ 355,196 318,411 (3rarts and Contracts 1,0KZ254 1,043,057 Sales and Services of Auxiliary Enterprises 13884 117,239 Sales and Services of Educational Departments 51.538 47,609 Repayment of Loans and Notes Receivable from Students 7,75 5,962 Interest on Loans Receivable 1,209 786 Other Operating Receipts 3,073 2,447 Payments to Employees (1,567,072)
State and Local Grants and Contracts                                      44,783        43,085                -              -
(1.563.104)
Nongovernmental Grants and Contracts                                    643,612        604,723                                -
Payments to Suppliers for Goods and Services (523,864)
Sales and Services ofAuxliary Enterrises (Note 13)                      131,350        129,369                -              -
(563,67 Payments to Students for Scholaruhips and Fellowships (82X4) (80,10)Loans Issued t Students (,06) (6,213)Payments on Self-Insured Claims and Expenses -(17,397) (7 Not Cub Used by Operatling Activities (SSW98) (627,)CASH FLOWS FROM NONCAPITAL.
Sales and Services of Educational Departments                              51,555        47,771                -              -
FINNCIG ACTIVIT Noncapital State A propriations 485,479 527,880 Federal and State FInancIal Aid 114,094 116,178 State Appropiated American Recovery and Reinvestment Act Funds 2,384 Noncapital Grents, Contracts, and Gifts 84,091 81,077 Direct Loan Program Receipts 253278 245,805 Direct Loan Program Disbursements (253,27) (245,794)Net Change in ldr Otes 58,500 29 Other Nonoperasing Receipts 948 2,180 Other Nonoperating Disbursements 48.3) -3,979)Not Cash Provided by Nweephal Financin Activities 7421 7Mm CASH FROWS FROM CAP1ITL ANI RELATED FINANCING ACTIVmIES Proceedsfrom Capital Debt 5= 270W4 Capita State Appropriations 26,2D4 5089 Capital Grants, Contracts, Donations, and Student Fees 9,548 3,349 Proceeds from Sales of Capital Assets 358 193 Other Receipts for Capital Projects 17 55Purchase or Construction of Capital Assets (139,187)
Sales and Services of Component Units                                            -                      113,186    :
(179,498)Principal Paid on Capital Debt and Leases (8,488) (7,342)Interest Paid on Capital Debt and Leases (8,134) (5,483)Not Cash Used by Capital and Reaited FinancingActivities (112.620)
Hospital Revenues                                                                -                              -      5W0386        1,=30,629 Gifts and Donations - Component Units                                                                      84,290          9,642 Royalties and Licensing Fees - Component Units                                                  -        24,897                                .
(110,743)CASH FL.OWS FROM INVESTING ACIVIIES Sale of Inestments 1,584849 1,476,554 Purchase of Investments 11,65W,1132)
Interest on Loans and Notes Receivable                                        976            998                -              -
(1,492,980)
Other Operating Revenues                                                    2,524          2,288          10,444          8,169          52,483 TotaluOperaingRees                                                        1,61171        1)57,8             232,817            197... 1,603,112 Employee Compensation and Benefits                                    1,619,W8        1,522,935                -                              -
Investment Income .2041 24,8 NotCash Prvided (Used) by Investi Activities
Services and Supplies                                                    460,776        446,578                                -
.......Nern Decrese in Cash and Cash Equivalents (213) (IM Cash and Cash Equivelens Beginnnlg of Year 519 1.59 Cash and Cash Equivalecnt End of Year $ 306 $ 519 RECONCIUA11ON OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss S (27.809) $ 87,040)Adjustments to Reconcile Operating Loss to NetCash Used by Operating Actties: Depreciation Expense 121,356 1168,87 Change in Assets and Liabilties Receivables, Nat 54,879 (27,715)Due From Component Units (13,183) (1,843)Inventories 110 185 Other Assets (68) 7 Accounts Payable 1,617 8,974 Salaries and Wages Payable (109) 3,497 Due to State and Component Units
Utities and Communications                                                64,748        65,675                    -                -
-(1,414)Unearned Revenue (145) (362)Deposits Held in Custody 136 1,175 Other Postemployment enefit Payable 37,317 35,398 Compensated Absences Payable 15,584 (80,087)Liability for Self-Insured Claims (46,885) 4,424 NET CASH USED BY OPERATING ACTIVITIES
I~.  ~          A~......---U
$ (5%.997) $ (6271M)SUPPlLEMENTAL DISCLSURE OfNONCASH OPERATING.
                                                          .-  I..-                        O'  MlA      oh oifl GisborLs--                                                                410,717)
INVESTI NG, AND CAPITAL RELATED FINANCING ACTIVTIES The following items are recognized on the Statement of Net Position or the Statement of Revenues, Expenses and Changes in Net Position, but are not cash transactions for the Statement of Cash FRows: Selff-isurance program adjustment (Note 18) $ 27,104 Unrealized gains on investments
Capital State Appropriations                                                    9,484 Ci                tcts, Donations, and Student Fees
$ 4,.04 Acquisition of equipment under installment purchase agreements  
                            ,ta                                                            13,922 AdtostoPermanet Endowments                                              -
$ 840 Less on dispoalof capital assets $ (3,898)The wnipanýig notes ar an integral part of Mese financial statements A Component Ut of the Wtteof Fb*d I 27 lersity,ý Board.ccol koard's i'ancial riteria which o and'omPo.rustet n1or ai Led by a rt iembers. eý3oard of st bers are aiould cz is a ual 28 1 A Uv of flox Wa Basi Uf A P1 n 1004.24, Florida 1, 1994, asa self-Section 1004.24, r of Florida Foundation, Inc., solicits, collects, Lnd directs contributions to the various academic ts and programs of the University, and assists thein fund raising, public relations, and maintenance of CI accel to Fl and soils in adequat However, financi not included in f certain c sity's finan(.1 stat arn D.1I The s1 axe inch A ComponediWtofthe State of Florida 1 29 Notes to agrici I pr tern ctice Plans, as 7. The Faculty nical practice educý~3I, in as faculty lhese organizations istruction function Un.iwv the edi invest for the rd of 3 and iaged r the 1~S)spital and Others dng Hospital and Sh inc was ocl is at the University.
Increase.(Decrase) inNtePouitlo                                              (17=22)
2nt, as of July i,.with the Florida iewal r the from o. At cor Associates, Inc.term ment.eriod The ci for ar In ad State ]ie co: greem ninat(Practice Associa 11, Inc.*tt A is 30 1 U1niversity of Forida 2012-2013 Annuol Fkanucidt Report is a Floridi organized to the co: surroundir missions o low-with partinents, Inc.* (the Corporation; r the purpose of providing housir come families, especially those affi of Florida. Capital was contribut versity of Florida Foundation, Inc assets, aerer ng from noneall applicablb.ows activ Dgnizedý, gains, abilities ognized ig time ,s ar ity follows i G. B(The L prind with fornc Les g(as s of I operating blic service. 0]ill fiscal transa of us reportin!report as a This electi(.Ba nents:* Otheiajor sources a fted net State oFloridd 1 31 Notes of tuition scholarships, discounts, and allowances.
Adjustmentto Beginning Nat Position (Note 2)
Tuition scholarships, discounts, and allowances are the differences between the stated charge for goods and services provided by the University and the amount that is actually paid by a student or a third party making payment on behalf of the student The University applied "The Alternate Method" as prescribed in NACUBO Advisory Report 2000-05 to determine the reported net tuition scholarships, discounts, and allowances. Under this method, the University computes these amounts by allocating the cash payments to students, excluding payments for services, on a ratio of total aid to the aid not considered to be third-party aid.The Statement of Cash Flows is presented using the direct method in compliance with GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable 7rust Funds and Governmental Entities That Use Proprietary FundAccounting.
Nat Positio, End of Yew        ta              o    s  a      s        $
1, Cash and Cash Equivalents The amount reported by the University as cash and cash equivalents consists of cash on hand and cash in demand accounts.
The acompanying notes are an integral part of these financial statemnnts.
University cash deposits are held in banks qualified as public depositories under Florida law. All such deposits are insured by Federal depository insurance, up to specified limits, or collateralized with securities held in Florida's multiple financial institution collateral pool required by Chapter 280, Florida Statutes.
26  I lnAersly of Florid
Cash and cash equivalents that are externally restricted to make debt service payments, maintain sinking or reserve funds, or to purchase or construct capital assets or other restricted assets, are classified as restricted. The University considers cash balances in overnight sweep accounts to be investments, as permitted by GASB Statement No. 9.I. Capital AssetsUniversity capital assets consist of land, construction in progress, buildings, infrastructure and other improvements, furniture and equipment, library resources, property under capital lease, works of art and historical treasures, computer software, and other capital assets. These assets are capitalized and recorded at cost at the date of acquisition or at estimated fair value on the date received in the case of gifts and purchases of State surplusproperty. Additions, improvements, and other outlays thatsignificantly extend the useful life of an asset are capitalized.
 
Other costs incurred for repairs and maintenance are expensed as incurred.
201-2203 ArrnudFlnancical Repoft Wversityof Florida Uni M213.                          2011-12 CASH ROM FROM OPERATING ACTIVITIES Tujition and Fees, Net                                                                                                      $              355,196                        318,411 (3rarts and Contracts                                                                                                                  1,0KZ254                        1,043,057 Sales and Services of Auxiliary Enterprises                                                                                                13884                          117,239 Sales and Services of Educational Departments                                                                                                51.538                        47,609 Repayment of Loans and Notes Receivable from Students                                                                                          7,75                          5,962 Interest on Loans Receivable                                                                                                                  1,209                            786 Other Operating Receipts                                                                                                                      3,073                          2,447 Payments    to Employees                                                                                                              (1,567,072)                    (1.563.104)
The University has a capitalization threshold of$4 million for intangible assets, which includes computer software, and $5,ooo for tangible personal property.
Payments to Suppliers for Goods and Services                                                                                            (523,864)                      (563,67 Payments to Students for Scholaruhips and Fellowships                                                                                      (82X4)                          (80,10)
The costs of all new buildings and projects adding new square footage are capitalized.
Loans Issued t Students                                                                                                                      (,06)                          (6,213)
Infrastructure and leasehold improvements have a$25oooo capitalization threshold.
Payments on Self-Insured Claims and Expenses                                                                                      -      (17,397)                          (7 Not Cub Used by Operatling Activities                                                                                                    (SSW98)                        (627,)
For building renovations, the threshold is $250,0oo or less if the amount expended is at least 25% of the cost basis of the building. Depreciation is computed on the straight-line basis over the following estimated useful lives.SBuildings
CASH FLOWS FROM NONCAPITAL. FINNCIG ACTIVIT Noncapital State A propriations                                                                                                            485,479                        527,880 Federal and State FInancIal Aid                                                                                                            114,094                        116,178 State Appropiated American Recovery and Reinvestment Act Funds                                                                                                                2,384 Noncapital Grents, Contracts, and Gifts                                                                                                      84,091                        81,077 Direct Loan Program Receipts                                                                                                              253278                        245,805 Direct Loan Program Disbursements                                                                                                        (253,27)                       (245,794)
-5 to 50 years, depending on construction Infrastructure and Other Improvements-1o to 5o years Furniture and Equipment-3 to 20 years* Library Resources
Net Change in              ldr Otes                                                                                                        58,500                          29 Other Nonoperasing Receipts                                                                                                                      948                        2,180 Other Nonoperating Disbursements                                                                                                                  48.3)        -3,979)
-io years* Property Under Capital Lease- 40 years Computer Software-5 years K. Noncurrent Liabilities Noncurrent liabilities include principal amounts of capital improvement debt payable, loans and notes payable, installment purchase agreements payable, capital leases payable, compensated absences payable, other postemployment benefits payable, liability for self-insured claims, and other noncurrent liabilities that are not scheduled to be paid within the next fiscal year. Capital improvement debt payable is reported net of unamortized premiums or discounts and deferred losses on refunding.
Not Cash Provided by Nweephal Financin Activities                                                                                          7421                          7Mm CASH FROWS FROM CAP1ITL ANI RELATED FINANCING ACTIVmIES Proceedsfrom Capital Debt                                                                                                                      5=                            270W4 Capita State Appropriations                                                                                                                  26,2D4                          5089 Capital Grants, Contracts, Donations, and Student Fees                                                                                        9,548                          3,349 Proceeds from Sales of Capital Assets                                                                                                            358                          193 Other Receipts for Capital Projects                                                                                                                17                          55 Purchase or Construction of Capital Assets                                                                                              (139,187)                      (179,498)
The University amortizes debt premiums and discounts over the life of the debt using the straight-line method.Deferred losses on refundings are amortized over the life of the old debt or new debt (whichever is shorter) using the straight-line method. Issuance costs paid from the debt proceeds are reported as Other Noncurrent Assets, and are amortized over the life of the debt using the straight-line method.L Other Significant Accounting Policies Other significant accounting policies are set forth in the financial statements and subsequent notes hereafter.
Principal Paid on Capital Debt and Leases                                                                                                    (8,488)                        (7,342)
*ADJUSTMENTS TO BEGINNING NET POSITION- COMPONENT UNITS Table x summarizes the Adjustments to Beginning Net Position reported in the Statement of Revenues, Expenses, and Changes in Net Position to reflect prior year accounting changes and correction of a prior year accounting error of the University's discretely presented component units.
Interest Paid on Capital Debt and Leases                                                                                                      (8,134)                        (5,483)
Table 2 summarizes the changes to Beginning Net Position for those discretely presented component units that are no longer reported in the University's financial statements.
Not Cash Used by Capital and Reaited FinancingActivities                                                                                (112.620)                      (110,743)
82 1 2012-2013 AnuaoFinanc~ialReport
CASH FL.OWS FROM INVESTING ACIVIIES Sale of Inestments                                                                                                                      1,584849                        1,476,554 Purchase of Investments                                                                                                                11,65W,1132)                  (1,492,980)
.5. ;.
Investment Income                                                                                                          .2041                                          24,8 NotCash Prvided (Used) by Investi        Activities                                                                        .......
Nern  Decrese inCash and       Cash Equivalents                                                                                                  (213)                      (IM Cash and Cash Equivelens Beginnnlg of Year                                                                                                        519                        1.59 Cash and Cash Equivalecnt End of Year                                                                                      $                    306      $                  519 RECONCIUA11ON OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss                                                                                                              S            (27.809)          $              87,040)
Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Actties:
Depreciation Expense                                                                                                                    121,356                        1168,87 Change in Assets and Liabilties Receivables, Nat                                                                                                                        54,879                        (27,715)
Due From Component Units                                                                                                              (13,183)                         (1,843)
Inventories                                                                                                                                  110                          185 Other Assets                                                                                                                                  (68)                           7 Accounts Payable                                                                                                                          1,617                          8,974 Salaries and Wages Payable                                                                                                                (109)                        3,497 Due to State and Component Units                                                                                                                -(1,414)
Unearned Revenue                                                                                                                            (145)                        (362)
Deposits Held in Custody                                                                                                                    136                        1,175 Other Postemployment enefit Payable                                                                                                    37,317                        35,398 Compensated Absences Payable                                                                                                            15,584                        (80,087)
Liability for Self-Insured Claims                                                                                                      (46,885)                          4,424 NET CASH USED BY OPERATING ACTIVITIES                                                                                      $            (5%.997)          $            (6271M)
SUPPlLEMENTAL DISCLSURE OfNONCASH OPERATING. INVESTI NG, AND CAPITAL RELATED FINANCING ACTIVTIES The following items are recognized on the Statement of Net Position or the Statement of Revenues, Expenses and Changes in Net Position, but are not cash transactions for the Statement of Cash FRows:
Selff-isurance program adjustment (Note 18)                                                                               $                27,104 Unrealized gains on investments                                                                                          $                  4,.04 Acquisition of equipment under installment purchase agreements                                                            $                    840 Less on dispoalof capital assets                                                                                          $                (3,898)
The wnipanýig notes ar an integral partof Mese financialstatements AComponent Ut of the Wtteof Fb*d          I 27
 
lersity,
                                                    ýBoard
                                            .ccol  koard's i'ancial o and riteria
                                              'omPo which Led by a rt
                .rustet iembers. eý ould cz n1or ai 3oard of st bers are ai                    is a ual A
28 1 Uv offloxWa
 
Basi Uf A
P1 r of Florida Foundation, Inc., solicits, collects, Lnd directs contributions to the various academic n 1004.24, Florida        ts and programs of the University, and assists the 1, 1994, asa self-      in fund raising, public relations, and maintenance of Section 1004.24, CI accel to Fl              and soils in adequat However, financi  f certain c not included in sity's finan( .1 stat arn D.1I The s1                    axe inch AComponediWtoftheStateof Florida 129
 
Notes ctice Plans, as to agrici      I pr                tern                7.The Faculty educý                                                                  nical practice
                                                                ~3I,   in as                  faculty lhese organizations istruction function Un.iwv                                                                                                  rd of the edi                                                                                                3and invest                                                                                                  iaged for the                                                                                                r the 1~
S
                                                                                )spitaland Others Sh      dng Hospital and                         was inc    ocl is at the University.
2nt, as of July i,
                                                                                                        . with the Florida iewal r the cor                                                                                                    from
: o. At Associates, Inc.                                          term                      ment.
The ci                                          eriod for ar In ad  ie co:        greem Practice Associa  11, Inc.*                State ]                ninat(
tt A
                                                                                                        *mer                is 30    1 U1niversity of Forida
 
2012-2013 Annuol Fkanucidt Report is a Floridi organized to the co:
surroundir missions o Dgnized partinents, Inc.* (the Corporation;                                              ý, gains, r the purpose of providing housir    assets, aerer  .ows                      abilities low-          come families, especially those affi ng from none    activ      ,s ar          ognized with          of Florida. Capital was contribut    all applicablb                              ig time versity of Florida Foundation, Inc                            ity follows i
G. B(
The L                                  with prind Les g(                                                             fornc as s of I operating                          of blic service. 0]
us reportin!                                    ill fiscal transa report as a This electi(
      .Ba            nents:
* Othei ajor sources a            fted net State oFloridd 1 31
 
Notes of tuition scholarships, discounts, and allowances. Tuition          25% of the cost basis of the building. Depreciation is computed scholarships, discounts, and allowances are the differences          on the straight-line basis over the following estimated useful lives.
between the stated charge for goods and services provided by SBuildings - 5 to 50 years, depending on construction the University and the amount that is actually paid by a student or a third party making payment on behalf of the student The                  Infrastructure and Other Improvements-University applied "The Alternate Method" as prescribed in                    1o to 5o years NACUBO Advisory Report 2000-05 to determine the reported                      Furniture and Equipment- 3 to 20 years net tuition scholarships, discounts, and allowances. Under this method, the University computes these amounts by allocating
* Library Resources - io years the cash payments to students, excluding payments for
* Property Under Capital Lease-    40 years services, on a ratio of total aid to the aid not considered to be third-party aid.                                                              Computer Software- 5 years The Statement of Cash Flows is presented using the direct method in compliance with GASB Statement No. 9, Reporting            K. NoncurrentLiabilities Cash Flows of Proprietary and Nonexpendable 7rust Funds and Noncurrent liabilities include principal amounts of capital Governmental Entities That Use ProprietaryFundAccounting.
improvement debt payable, loans and notes payable, installment purchase agreements payable, capital leases payable, 1, Cash and Cash Equivalents                                        compensated absences payable, other postemployment benefits payable, liability for self-insured claims, and other noncurrent The amount reported by the University as cash and cash              liabilities that are not scheduled to be paid within the next equivalents consists of cash on hand and cash in demand              fiscal year. Capital improvement debt payable is reported net accounts. University cash deposits are held in banks qualified      of unamortized premiums or discounts and deferred losses as public depositories under Florida law. All such deposits are      on refunding. The University amortizes debt premiums and insured by Federal depository insurance, up to specified limits,    discounts over the life of the debt using the straight-line method.
or collateralized with securities held in Florida's multiple        Deferred losses on refundings are amortized over the life of the financial institution collateral pool required by Chapter 280,       old debt or new debt (whichever is shorter) using the straight-Florida Statutes. Cash and cash equivalents that are externally      line method. Issuance costs paid from the debt proceeds are restricted to make debt service payments, maintain sinking or        reported as Other Noncurrent Assets, and are amortized over the reserve funds, or to purchase or construct capital assets or other  life of the debt using the straight-line method.
restricted assets, are classified as restricted. The University considers cash balances in overnight sweep accounts to be investments, as permitted by GASB Statement No. 9.                   L Other SignificantAccounting Policies Other significant accounting policies are set forth in the financial I. CapitalAssets                                                    statements and subsequent notes hereafter.
University capital assets consist of land, construction in progress, buildings, infrastructure and other improvements, furniture and equipment, library resources, property under capital lease,           *ADJUSTMENTS TO BEGINNING NET works of art and historical treasures, computer software, and                  POSITION- COMPONENT UNITS other capital assets. These assets are capitalized and recorded at cost at the date of acquisition or at estimated fair value on the    Table x summarizes the Adjustments to Beginning Net Position date received in the case of gifts and purchases of State surplus    reported in the Statement of Revenues, Expenses, and Changes property. Additions, improvements, and other outlays that            in Net Position to reflect prior year accounting changes and significantly extend the useful life of an asset are capitalized. correction of a prior year accounting error of the University's Other costs incurred for repairs and maintenance are expensed        discretely presented component units.
as incurred. The University has a capitalization threshold of       Table 2 summarizes the changes to Beginning Net Position for
            $4 million for intangible assets, which includes computer            those discretely presented component units that are no longer software, and $5,ooo for tangible personal property. The costs      reported in the University's financial statements.
of all new buildings and projects adding new square footage are capitalized. Infrastructure and leasehold improvements have a
            $25oooo capitalization threshold. For building renovations, the threshold is $250,0oo or less if the amount expended is at least 82 1 UniversityofF*dda
 
2012-2013 AnuaoFinanc~ialReport
              .5.;.
* S S S O
* S S S O
* Sk savings accounts in qualified public depositories, as defined in Section 280.02, Florida Statutes; direct obligations of the Section to invest Administ!s; sec nd m that over issionregiste apter Trnf tIC admnniste:
* Sk savings accounts in qualified public depositories, as defined in Section 280.02, Florida Statutes; direct obligations of the Section                                             !s; sec to invest                                          nd m Administ            that                                           issionregiste over apter Trnf tIC admnniste: the Stateoffloida 133
the Stateoffloida 1 33 Notes nts ida PRIME tandard &(WAM) of he average in the case sitivity of rnges. The reported at 3 anortiz ofAd&Accounts are u Tabe.* ppet i Investment ments on benefit of d in the 1hensive external im ity and various A.Pools ucation Insura Si), plus amc U]other retely ternal-'s C in rsity's o pay 3aSi 34 1 3.rit N4Ai.8.t 60 Copoen Unit Deb Ineten a-I. ' .'A.~~- 0* 3F K .5VKKK. ~ KY Ai..the fiscal ,resented the most'le. Some itionally, include ient unit niversity ,ment of i by the as of June 30. 2013, are summanzed inTi A: 8 't Accc romo Lion r gly, Net , comi due from and tc LUVCI ILy.types: itained m and supply process.sed and Merchandise Inventories  
 
-Those inventories maintained which are available for resale to individuals and other University and notes departments, and are not expensed at the time of purchase.st estimate These inventories are reported on the Statement of Net Position on history, and are valued at cost using either the moving average method receivable or the first-in, first-out method.d upon 3, is ial bpofl on tl ti Tal 13.' Caia Ipoe en et-aal
Notes ida PRIME nts                    tandard &
: k. ., rnip. a te ,* **, 611 Note Paal*-rftle- .her ient n 39 Notes Table ~ ~S 17,aptlLessPaal tivemity follows Governmental Accounting Standards ASB) Statement NO. 45, Accounting and Financial Reportingývers for Pstemployment Benefits Other Than pnsions, for postemployment benefits administered by the StateJealth Insurance Programp.lescription.
(WAM) of he average in the case sitivity of rnges. The reported at 3anortiz ofAd&       Accounts are u     ments on Tabe.* ppet   i Investment benefit of d in the 1hensive external im       ity and various A.                 Pools           ucation Insura U] Si), plus amc other retely ternal
Pursuant to the provisions of Section i, Florida Statutes, all employees who retire from the ity are eligible to participate in the State Group Health ce Program, an agent multiple-employer, defined-benefit an). The University sub~sidizes the premium rates paid-es by allowing them to participate in the Plan at reduced led group (implicitly subsidized) premium rates for both nd retired employees.
        -'s C                                                     in rsity's o pay 3aSi 34 1
These rates provide an implicit for retirees because, on an actuarial basis, their current ure claims are expected to result in higher costs to the i average, than those of active employees.
 
Retirees are I to enroll in the Federal Medicare program for their coverage as soon as they are eligible.
3.rit N4Ai
A stand-alone s not issued and the Plan information is not included in Drt of a public employee retirement system or another Lg Policy. Plan benefits are pursuant to provisions of 112.0801, Florida Statutes, andbenefits and contributions imended by the Florida Legislature.
.8.t 60 Copoen Unit Deb   Ineten           a
The University has ance-funded or established a funding methodology for ual Other Posternployment Benefit (OPEB) costs or the ,B obligation, and the Plan is financed on a pay-as-you-
                          -         I. ' .'A
: s. For the 2012-13 fiscal year, 2,451 retirees received ployment benefits.
                    .~~-
The University provided required utions of $io,o65,ooo toward the annual OPEB cost, 3ed of benefit payments made on behalf of retirees for expenses (net of reinsurance), administrative expenses, insurance premiums.
3F                0*
Retiree contributions totaledý,ooo, which represents 1.4% of covered payroll.I OPEB Cost and Net OPEl Obligation.
K           ~
The;ity's annual OPEB cost (expense) is calculated based on*ual required contribution (ARC), an amount actuarially nied in accordance with the parameters of GASB 45. The presents a level of funding that if paid on an ongoingprojected to cover normal cost each year and amortize unded actuarial liabilities over a period not to exceed 30 able ig shows the University's annual OPEB cost for the 3, the estimn 40 1 Univs1tyofF/or  
                                .5VKKK.       KY
.3.:~d ROO:6 iic Uxuer--benefit rs. The bniajues in ,,,* I k 3t 'P.refa o,,
 
* 8 'NetIObig 'on
Ai..
$I uI.Chz Stateoffiorbo 1 41I Notes investment Flan totaled $3,5115,977 and employee totaled $1,997,341.)f Florida establishes contribution rates for employers and employees.
the fiscal
Effective July 1, 2011, ere required to contribute 3% of gross salary ment. Contribution rates during the 2012-13 fiscal nted inTable 2 1.I .tes 4fiedfient S on or aiter juiy 1, 20211, vest at eigxi years <o creuuaoie serwvce. Fl 'e Sa All vested members, enrolled prior to July , 202i r, are eligible for F normal retirement benefits at age 62 or at any age after 30 years M of service, except for members classified as special risk, who are D e m O eligible for normal retirement benefits at age 55 or at any age ! tM ef after 25 years of service. All members enrolled in the Plan on or a o after uly 1i, 2011, once vested, are eligible for normal retirement benefits atage 65 or any time after 33 years of creditable service, Notes except for members classified as special risk, who are eligible for Ec normal retirement benefits at age 6o or at any age after 30 years i of service. Members of both Plans may include up to 4 years of (B Rtroi credit for military service toward creditable service. The Plan remlyd also includes an early retirement provision; however,, there isa benefitreductionforeachyearamemberretiresbeforehirrhr The universits liablyor partic iS to the normal retirement date. The Plan provides retir n dsablity paym- ofthe required contribution at the rates and frequencies and death benefits, and annualcost-of-li a establishi d by law on future payrolls of the University There were 7,915 Universityparpants during the 2012-213 fiscal DROP, subject to provisions of Section 121,.091, FlordaStatutes, year. The Ueniversity's contributions for tie fiscal years ended permits employees eligible for normal retirement under June 30, 2oii, and June 30, 2012 totaled $38,8"3,505 and the Plan to defer receipt of monthly benefit paymens while $16,712,175, respectively which were equal to the required continuing employment with an FRS empl~oyer. An employee contributions for each <fiscal year. For the fiscal year end~ed June may participate in the DROP for a period not to exceed 60 30, 20213, the University's contributions totaled $217,809,204 and months after electing to participate.
                                                                                                                ,resented the most
During the period of DROP employee contributions totaled $8,636,742.
                                                                                                                'le. Some itionally, include as of June 30. 2013, are summanzed inTi                                                               ient unit t Accc        gly,                            niversity romo                                          ,ment of A: 8       '
participation, deferred monthly benefits are held i Financial statements and other supplementary information Trust Fund and accrue interest of the FRS are included in the Stats Comprehensive As provided in Section I121.45o0, Florida Statutes, eligible FRS Annual Financial Report, which is available from the Floridamembers may elect to participate in the Investment Plan in Department of Financial Services.
Net ,    Lion r                                         i by the comi                   due from and tc       LUVCI ILy.
An annual report on the FRS, lieu of the FRS defined-benefit plan. University employees which includes its financial statementsrequired supplementary already particpating in the State University System Optional information, actuarial report, and other relevant information, is Retirement Program or the DROP are not eligible to particiate available from the Florida Department of Management Services, in this program. Employer contributions are defined by law, Division of Retirement.
types:
but the ultimatebenefit depends in part on the performance of investment fund4s. The Investment Plan is funded by employer RSaeUiest vtmOtoa and employee contributions that are based on salary and B. Universit Smst membership class (Regular Class, Senior M.anagement Service .... ..Class, etc.).
itained m and supply process.
Contributions are directed to individual member Section1135,FlodaSatu ,provides fran ptionalRetirement accounts, and the individual members allocate contributions Program (Program) for eligibe university instructors andand account balances among various approved investment administrators.
sed and Merchandise Inventories - Those inventories maintained which are available for resale to individuals and other University and notes departments, and are not expensed at the time of purchase.
The ProgramisdesignetoaidState universities in choices. Empilovees in the Investment Plan vest at onie year .recruitintyemnylovees bv offerine more Tortabilitv to emT)ovees not 42 1 Unlversty of Florida tc san.No s, which include a an become eligibb urity not to to the ed by the ity nr ployees do not coni D this program.
d upon                st estimate These inventories are reported on the Statement of Net Position on history, and are valued at cost using either the moving average method receivable or the first-in, first-out method.
tes 7, %"",7 -e; all lossesin these categories are completely self State through the State Ris Management Trust ied pursuant to Chapter 284, Florida Statutes.tort claims are limited to $200,000 per person, per occurrence as set by Section 768.28(5), Florida ilationof premiums considers thecash needsof the he amount of risk exposure for each participant.
3, is
en no significant reductions in insurance coverage r year coverage.
 
Settlements have not exceeded!rage during the past three fiscal years.Section 1i1o.123, Florida Statutes, University y obtain healthcare services through participation oup health insuranceplan orthrough membership intenance organization plan under contract with&#xfd; State'srsk financing activities associated with ealth insurance, such as risk of loss related to-escription drug claims, are administered through[oyees' Group Health Insurance Trust Fund. It is the State not topurchase commercial coverage forcovered bv this Fund. Additional information on 44 1 Yniversqtofflorkld B.L The are ed ba ry loss V for subject per-clai exceed al and cc&#xfd;es in Notes debt. In addition, tile acflvitylS reiatea revenues, expenses, gains, FUNCTIONAL DIS RITION OF losses, assets, and liabilities are required to be accounted for separately.
ialbpofl on tl ti
Transportation and Parking Services provides the OPERIATINIG EXPENSES University with safe and adequate parking facilities.
 
Several The functional classification of an operating expense parking garages have been constructed from the proceeds (instruction, research, etc.) is assigned to a department based of revenue-backed debt instruments.
Tal 13.' Caia Ipoe en et-aal
The Department of on the nature of the activity, which represents the material Housig and Residence Education provides safe and affordable portion of the activity attributable to the departmnt.
: k.                       . ,
For iving space for students of the .niversity of Florida. Capitalexample, activities of academic departments for which the improvement debt hasbeen issued over the years to provide primary departmental function is instruction may include some funding for the construction of facilities to house students ofTal 24 FucinlEpne Student Activity Revenue Bonds, Series 2013. The bonds will be repaid from student activity and service fees and the proceeds will be used to renovate and expand Wayne Reitz Union, the community center of the University. The bonds will mature in annual increments starting on July 1, 2O14, and ending on July 1, 2033. Interest payments are due semiannually on Januaryx and July i beginning January i, 2oQ4.On November 20, 2013, the Florida Board of Governors, on behalf of the University, issued $24805o,00oef Utniversity of Florida Hiousingormitory Revenue Bonds, SerieS 201r 3A.The bonds will be repaid from dormitory fees charged to students.  
rnip. a te
$i9,6oo,oooof the proceeds will be used to constructa 255-bed dormitory with statef-the-art features comtplying with th~e Am~ericans with Disailities Act The remaining  
,* **,   611   Note       Paal
$5,0o5,ooo will refund portions of the Student Housing Auxiliary Debt Bonds, Series 2005A, maturing in years 2o16 through 20o2y The-new bonds will mature in annual increments starting on July 1, 2014, and endingon July x, 2033. Interest payments are due semiannually on January i and July i beginning July 1, 20 14.On November 21, 201 3, Shands Jacksonville Medical Center, Inc.(a subsidiary of Shands Jacksonville Healthcare, Inc., a discretely presented component unit of the University), borrowed$123,645,000 with the issuance of Healthcare Facilities Revenue Bonds, Series 201 3A and 2013B, for $64,240,000 and $59,o5,ooo, respectively. The proceeds will be used to refund the Series 2013 A. Blended Component Units The University has two blended conpc in Note z. Financial information for t component units is presented in Table 2 B. Discretelv Presented ComponentThe University's financial statements presented component units as discuj component units comprise ioo% of the t balances of the aggregate discretely 46 1 Utliersity of FhIrl 2012-2013 Anuram I CONDENSED S'Assets (28,979) 3,041,261 28,932 12,776 231,359 44,551 383,661 86259 615,020 Total U 672,30o Opera 093 t4U$$ -$ Z36IL96 S Equivalents Tak4 6ret S3 up por Oraiain 3..tsxrssd Due from Component Units/Uniersity S $79,3 $Other Current Assets 106,28 Capital Assets, Net 70,755 Other Noncurrent Assets 1,551,350  
              *-rftle- .her ient n 39
... .. _Total Assets 1,807,779 Labilities Due to Com ponent UnisU n y ..28,214 Other Current Liabilites 21,070 Noncurrent Uablities  
 
-6,204 Total Liab~ilities 75,8 Not Postin Net Inetmen inh Capital Assets 19,255 Restulcted-Nonexpenclble Endowment 1,163,209 Restcted Endowment 261,911 0rO r 297,106 unrestricted (9,190)Total Net Posiin $ 1,7Z291 $CONDENSED STATEMENT OF REVENUES, ANDC NESIN NETPOSmON Operating Revenues $ 79,945 $Operating Expenses .11 39,959)OperatngInoe (Loss) (60,014).Nonoperating Revenues(Expenses)
Notes Table ~ ~S 17,aptlLessPaal follows Governmental tivemity Accounting Standards ASB) Statement NO. 45, Accounting andFinancialReporting
Investment Income, Net of Expenses 114,855 Net Increase in the Fair Value of Investmeants 762 Addition to Permanent Endowments 40,175 Other 11,93 Change in NetPosition 107,-7 107,57 Net Position, Beginning of Year 1,624,620 Adjustmentsto Beginning Net Position NetPositio, nnng o Year, as Restated(Note
                                              &#xfd;vers for Pstemployment Benefits Other Than       pnsions, for postemployment benefits administered by the State Jealth Insurance Programp.
: 2) 1,624,620
lescription. Pursuant to the provisions of Section i, Florida Statutes, all employees who retire from the ity are eligible to participate in the State Group Health ceProgram, an agent multiple-employer, defined-benefit an). The University sub~sidizes the premium rates paid
_____Net PositionEnd ofYew $ 1,732=m $48 1 Vniverslty of fialoru 2012-2013 AnualFinnwcialReport
                                              -es by allowing them to participate in the Plan at reduced led group (implicitly subsidized) premium rates for both nd retired employees. These rates provide an implicit for retirees because, on an actuarial basis, their current ure claims are expected to result in higher costs to the i average, than those of active employees. Retirees are I to enroll in the Federal Medicare program for their coverage as soon as they are eligible. A stand-alone s not issued and the Plan information is not included in Drt of a public employee retirement system or another Lg Policy. Plan benefits are pursuant to provisions of 112.0801, Florida Statutes, andbenefits and contributions imended by the Florida Legislature. The University has ance-funded or established a funding methodology for ual Other Posternployment Benefit (OPEB) costs or the
$ 11,843 $ 10,656 $ $ -$ -$ 101,885 61,558 1,571 8,329 830 1,804 331,8%5 175,054 19 -10,707 -256,535 51,788 431 -10,441 1,614,010 300,243 12,677 6,329 11,537 12245 2,304,325 23 65,993 92,031 158,047 86,259 12,235 43,702$ 14Z196$ 65,769 (104,341)(38,572)6O7 5,329 48,117 15,481 127,357 (642)126,715$ 142,196 11,415 167 112 11,M94 19 430 534 93$ 48,462 (2,8G7)43,855 1,259 145,107)16 867 967$ 93-301 68,502 4,082 588 12,160 130,W48 S- -124,847 4,082 889 12,180 324,2%3,737 10,707 119,977--1,163,M 261,911 9 1309,341 (1,490) (59) 85 125,102$ Z247$ IM$$ U 85,98.$ 9,221 $ 827 $(11,599) (1,571)(2,378) (744)129 $ 232,817 (44) 4295,574)85 (62,757)10 119,192 10,735-*40,184 11,392 29,174 (368) 10,648 85 136,528 2,615 1,844,826-( T,324)2,615 .1,43,502$ 2MS$ 1USm.$ 8 $ 1*1mA CO Iw t nofftheSlaWOf MWO 49 Notes Tabl 27.: I ceceCne Afflae aoosepeqyhf'  
                                              ,Bobligation, and the Plan is financed on a pay-as-you-
'Assocation Physcins Asscates.W Association, Heltcre Scne Inc. Inc. Inc. Inc. Cmraer 6WrS"13 W11*013 V"30/013 6/30"13 6W=*/013 Affiliates Assets Due from Component Units/University  
: s. For the     2012-13 fiscal year, 2,451 retirees received ployment benefits. The University provided required utions of $io,o65,ooo toward the annual OPEB cost, 3ed of benefit payments made on behalf of retirees for expenses (net of reinsurance), administrative expenses, insurance premiums. Retiree contributions totaled
$ 2,172 $ 6,019 $ S $ -$ 2 $ 8,253 Other Current Assets 71,599 41,813 3,682 8,537 399 126,030 Capital Assets, Net 50,305 17,226 -3,976 71,507 Other NoncurrentAssets 25,120 75 -..25,195 Total Assets 149,196 65,133 3,682 8,537 4 : 230,985 Uabilities Duet~oComponient Units/University 2,032 -755 2,161 4,948 Other Current Liabilities 10M08 9,420 160 44 1,907 21,600 Noncurrent Liabililties 38,82_6_73  
                                              &#xfd;,ooo, which represents 1.4% of covered payroll.
---___ 45,564 Total Liabilties 4.8,8 18189 180 799 4,M8 72,112 Net Position NetlInvestmntin Capital Assets 10023 9. .-3,976 23,781 Unrestrictedt 90,277 37,182 _ 3,522 7,739 (3,607) 135,092 TrotalN rotoition  
I OPEB Cost and Net OPEl Obligation. The
$ 100,30 4o6,94. 4 $ 3= $ 7,738 $ I6 15"nIS~CNESDSTATEMENTOF RVN ES, PEfNSES. AND CHIANGES I NET POS1ION Operating Revenues $ 360,968 $ 192,309 $ 17,253 $ 1,452 $ 215 S 578,197 Operating Expenses (103,003)
                                              ;ity's annual OPEB cost (expense) is calculated based on
(94,401) (256) (367) (29,925) (227,952)Operating Income (Loss) 257,965 97,908 16,997 7,085 (29,710) 350,245 Nonoperating Revenues (Expenses)
                                              *ualrequired contribution (ARC), an amount actuarially nied in accordance with the parameters of GASB 45. The presents a level of funding that if paid on an ongoing 3, the estimn projected to cover normal cost each year and amortize unded actuarial liabilities over a period not to exceed 30 able ig shows the University's annual OPEB cost for the 40 1 Univs1tyofF/or
Investment ncome,Net of Expenses 371 23 2 3 399 Net Increase in the Fair Value of Investments 1,138 ---1,138 Other (2.57,469)
 
(97,855) (16,825) (8,314) 29,710 (350,553)Ch~ange in Net Position 2,005 276 174 (1,228) _ __ 1,229 Net Position, Beginning of Year 98,295 46,668 3,348' 8,964 369 157,644 Adjustmentsto Beginning NettPosition  
                    .3.:~d       ROO:6 iic Uxuer
-* -____. _ _, .........  
                                                    --benefit rs. The bniajues in
.Net Position, Beginmnng ofYear, as Restated (Nota 2) 989 46,6.8 3,348 9.864 369 157,644 N--------b-202-2013 Aaua/ fincicol Re Shands lirt its 3te Swap 108,270 Operating Re$11,640 (6)(2,50) -(117.091)
    ,,,* I k     3t     'P.refa
(25,312)11,634 (142,403)-6------2&#xfd; 9 987,531 AdjustiT g Net Net Position, Beginning of Year, Neot Psosion, End of Yew lordda 1 51 Notes Tal 29 Semn Ifraio Depewbue of Husing Trmspouldles and and Resdience Parking Service Educaton 0S3S13 W5IV13 CONDENSED STATEWMNT OF NET POSmON Assets Current Assets Capital Assets, Net Other Noncurrent Assets Total Assets Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Net PositionNet Investment in Capital Assets Restricted Unrestricted Totl Net Posien$ 8,884,949 39,582,818 2,896,352 22,45894 25255,300 17,M4,680 7,122,732 6,129,211$ 3%910152$ 4,452,026 104,855,123 22,399,910
* o,, 8 '
_ 131,707,059 10,087,257
NetIObig   'on
____ 67,139.555 77,226,812 54,961,078 1,878,535 (2,1%9.36W)
$I uI.
$ 54AS247 CONDENSED STAM MENT OF REVENUES, EXPENSES, AND CAGES IN NET POSITO Operating Revenues (Expenses):
Chz Stateoffiorbo 141I
Operating Revenues Depreciation Expense Other Operating Expenses Operating Income Nonoperating Revenues (Expenses):
 
Investment Income Interest on Capital Asset-Related Debt Other TransfersNet Nonopereting Revenues (Expenses)
Notes investment Flan totaled $3,5115,977 and employee totaled $1,997,341.
Change in Not Position Net PositIon, Beginning of Year Naot Poeien, End f Year CONDENSED STATEENT OF CASH FLOWS Net Cash Provided (Used) by: Operating Activities Noncapital Financing Activities Capital and Related Financing Activities Investing Activities Net Increase (Decrease) in Cash and Cash EquivalentsCash and Cash Equivalents, Beginning of Year Cash and Cash Eq*ulent, End olfYew$ 21,451,438 (2,343,8M)
                                                                                                  )f Florida   establishes contribution       rates for employers and employees. Effective July 1, 2011, ere required to contribute 3% of gross salary ment. Contribution rates during the 2012-13 fiscal nted inTable 21.
(16,739,884) 2,367,696 80,140 (1,118,%5)
I   .tes 4fiedfient S
(1,036,530)
on or aiter juiy 1, 20211, vest at eigxi years <o creuuaoie serwvce. Fl               Sa
(1,097,21)
                                                                                                      'e All vested members, enrolled prior to July , 202i r, are eligible for   F normal retirement benefits at age 62 or at any age after 30 years           M of service, except for members classified as special risk, who are       D     e     m     O eligible for normal retirement benefits at age 55 or at any age       !                       tM     ef after 25 years of service. All members enrolled in the Plan on or             a o after uly 1i,2011, once vested, are eligible for normal retirement benefits atage 65 or any time after 33 years of creditable service,     Notes except for members classified as special risk, who are eligible for           Ec normal retirement benefits at age 6o or at any age after 30 years             i of service. Members of both Plans may include up to 4 years of           (B               Rtroi credit for military service toward creditable service. The Plan               remlyd also includes an early retirement provision; however,, there isa benefitreductionforeachyearamemberretiresbeforehirrhr                 The universits liablyor partic                       iS       to the normal retirement date. The Plan provides retir       n dsablity     paym- ofthe required contribution at the rates and frequencies and death benefits, and annualcost-of-li         a                   establishi d by law on future payrolls of the University There were 7,915 Universityparpants during the 2012-213 fiscal DROP, subject to provisions of Section 121,.091, FlordaStatutes,     year. The Ueniversity's contributions for tie fiscal years ended permits employees eligible for normal retirement under               June 30, 2oii, and June 30, 2012 totaled $38,8"3,505 and the Plan to defer receipt of monthly benefit paymens while           $16,712,175, respectively which were equal to the required continuing employment with an FRS empl~oyer. An employee             contributions for each <fiscal year. For the fiscal year end~ed June may participate in the DROP for a period not to exceed 60             30, 20213, the University's contributions totaled $217,809,204 and months after electing to participate. During the period of DROP       employee contributions totaled $8,636,742.
(3,172,016)
participation, deferred monthly benefits are held i                   Financial statements and other supplementary information Trust Fund and accrue interest                                       of the FRS are included in the Stats Comprehensive As provided in Section I121.45o0, Florida Statutes, eligible FRS     Annual Financial Report, which is available from the Florida members may elect to participate in the Investment Plan in           Department of Financial Services. An annual report on the FRS, lieu of the FRS defined-benefit plan. University employees           which includes its financial statementsrequired supplementary already particpating in the State University System Optional         information, actuarial report, and other relevant information, is Retirement Program or the DROP are not eligible to particiate         available from the Florida Department of Management Services, in this program. Employer contributions are defined by law,           Division of Retirement.
(804,320)31,360,943 S$ 6,472,594 (29,817)(4,029,646)
but the ultimatebenefit depends in part on the performance of investment fund4s. The Investment Plan is funded by employer         RSaeUiest vtmOtoa and employee contributions that are based on salary and               B.           Universit Smst membership class (Regular Class, Senior M.anagement Service             ....         ..
(2,412,991) 3,140 86$ _3,26$ 48,678,910 (4,648,104)
Class, etc.). Contributions are directed to individual member         Section1135,FlodaSatu             ,provides fran ptionalRetirement accounts, and the individual members allocate contributions           Program (Program) for eligibe university instructors and and account balances among various approved investment               administrators. The ProgramisdesignetoaidState universities in choices. Empilovees in the Investment Plan vest at onie year         .recruitintyemnylovees bv offerine more Tortabilitv to emT)ovees not 42 1 UnlverstyofFlorida
(37,360,146) 6.670,660 250,166 (3,125,180)
 
(2,723,042) 959,e66 (4,638,400) 2,032,260 52,447,987
tc san s, which include a   urity      .No an become eligibb not to ed by the to the  ity ployees do not coni Dthis program.
$54AM4127$ 12,104,118 (11,M6,629)
nr
(14,053,016) 8,181,422 (5,124,105) 8,130,212$ 3,055,107 52 1 Unlver4 tof Flouddo 2012-201f3 AoJnrnua inandReport Actumarla IAA~ass U U&up rner~ta Info t ~Fiacal Aiddm isee fo th:Ya Ene. e 30 20 W AUDITOR GENERAL STATE OF FLORIDA DAVID W. MARTIN, CPA PHONE: 850-412-2722 AUDITOR GENERAL G74 Claude Pepper Building FAX: 850-488-6975 111 West Madison Street Tallahassee, Florida 32399-1450 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS Report on the Financial Statements We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the University of Florida, a component unit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements, and have issued our report thereon dated December 20, 2013, included under the heading INDEPENDENT AUDITOR'S REPORT. Our report includes a reference to other auditors who audited the financial statements of the blended and aggregate discretely presented component units, as described in our report on the University's financial statements.
 
Th-is report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
tes 7, %"",7-e; all lossesin these categories are completely self State through the State Ris Management Trust ied pursuant to Chapter 284, Florida Statutes.
Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the University's internal control over financial reporting (internal control) to determine audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, we do not express an opinion on the effectiveness of the University's internal control.A defideny in inlernal/ontro/
tort claims are limited to $200,000 per person, per occurrence as set by Section 768.28(5), Florida ilationof premiums considers thecash needsof the he amount of risk exposure for each participant.
exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the University's financial statements will not be prevented, or detected and corrected on a timely basis.
en no significant reductions in insurance coverage r year coverage. Settlements have not exceeded
                        !rage during the past three fiscal years.
Section 1i1o.123, Florida Statutes, University y obtain healthcare services through participation oup health insuranceplan orthrough membership intenance organization plan under contract with
                        &#xfd;State'srsk financing activities associated with ealth insurance, such as risk of loss related to
                        -escription drug claims, are administered through
[oyees' Group Health Insurance Trust Fund. It is the State not topurchase commercial coverage for covered bv this Fund. Additional information on 44 1 Yniversqtofflorkld
 
B.L The are ed ba ry loss V for subject per-clai exceed al and cc
        &#xfd;es in
 
Notes debt. In addition, tile acflvitylS reiatea revenues, expenses, gains, FUNCTIONAL DIS RITION OF                         losses, assets, and liabilities are required to be accounted for separately. Transportation and Parking Services provides the OPERIATINIG EXPENSES                               University with safe and adequate parking facilities. Several The functional classification of an operating expense           parking garages have been constructed from the proceeds (instruction, research, etc.) is assigned to a department based of revenue-backed debt instruments. The Department of on the nature of the activity, which represents the material   Housig and Residence Education provides safe and affordable portion of the activity attributable to the departmnt. For     iving space for students of the                   of Florida. Capital
                                                                                                                        .niversity example, activities of academic departments for which the       improvement debt hasbeen issued over the years to provide primary departmental function is instruction may include some   funding for the construction of facilities to house students of Tal 24 FucinlEpne Student Activity Revenue Bonds, Series 2013. The bonds will be repaid from student activity and service fees and the proceeds will be used to renovate and expand the**. Wayne Reitz Union, the community center of the University. The bonds will mature in annual increments starting on July 1, 2O14, and ending on July 1, 2033. Interest payments are due semiannually on Januaryx and July i beginning January i, 2oQ4.
On November     20, 2013, the Florida Board of Governors, on behalf of the University, issued $24805o,00oef Utniversity of Florida Hiousingormitory Revenue Bonds, SerieS 201r 3A.The bonds will be repaid from dormitory fees charged to students. $i9,6oo,ooo of the proceeds will be used to constructa 255-bed dormitory with statef-the-art features comtplying with th~e Am~ericans with Disailities Act The remaining $5,0o5,ooo will refund portions of the Student Housing Auxiliary Debt Bonds, Series A. Blended Component Units                                      2005A, maturing in years 2o16 through 20o2y The-new bonds will mature in annual increments starting on July 1, 2014, and The University has two blended conpc endingon July x, 2033. Interest payments are due semiannually in Note z. Financial information for t component units is presented in Table 2                        on January i and July i beginning July 1, 20 14.
B.DiscretelvPresentedComponent                                  On November     21, 201 3, Shands Jacksonville Medical Center, Inc.
(a subsidiary of Shands Jacksonville Healthcare, Inc., a discretely The University's financial statements                          presented component unit of the University), borrowed presented component units as discuj
                                                                            $123,645,000 with the issuance of Healthcare Facilities Revenue component units comprise ioo% ofthe t Bonds, Series 201 3A and 2013B, for $64,240,000 and $59,o5,ooo, balances of the aggregate discretely respectively. The proceeds will be used to refund the Series 2013 46 1 UtliersityofFhIrl
 
2012-2013 Anuram I
CONDENSED S' Assets (28,979)        3,041,261 28,932 12,776 231,359 44,551 383,661 Total U                        86259  615,020                      672,30o Opera 093                      t4U
                        $                    $        -   $ Z36IL96 S
Equivalents
 
Tak4           6ret     S3 up por   3..tsxrssd Oraiain Due from Component Units/Uniersity                                         S   $79,3         $
Other Current Assets                                                           106,28 Capital Assets, Net                                                               70,755 Other Noncurrent Assets                                                       1,551,350
                                                                                    ...         ..       _
Total Assets                                                                     1,807,779 Labilities Due to Com     ponent UnisU n       y                                   ..       28,214 Other Current Liabilites                                                           21,070 Noncurrent Uablities -6,204 Total Liab~ilities                                                                 75,8 Not Postin Net Inetmen inhCapital Assets                                                     19,255 Restulcted-Nonexpenclble Endowment                                           1,163,209 Restcted                   Endowment                                           261,911 0rOr                                                297,106 unrestricted                                                                       (9,190)
Total Net Posiin                                                             $ 1,7Z291         $
CONDENSED STATEMENT OF REVENUES,                     ANDC NESIN NETPOSmON Operating Revenues                                                           $     79,945     $
Operating Expenses                                                 .11               39,959)
OperatngInoe (Loss)                                                               (60,014).
Nonoperating Revenues(Expenses)
Investment Income, Net of Expenses                                               114,855 Net Increase inthe Fair Value of Investmeants                                         762 Addition to Permanent Endowments                                                   40,175 Other                                                                             11,93 Change in NetPosition                                                             107,-7 107,57 Net Position, Beginning of Year                                                 1,624,620 Adjustmentsto Beginning Net Position NetPositio,         nnng o Year, as Restated(Note 2)                           1,624,620       _____
Net PositionEnd ofYew                                                         $ 1,732=m         $
48   1Vniverslty of fialoru
 
2012-2013 AnualFinnwcialReport
$   11,843 $ 10,656   $           $       -   $       -     $       101,885 61,558       1,571       8,329       830       1,804                 331,8%5 175,054           19           -   10,707             -               256,535 51,788         431                     -     10,441             1,614,010 300,243     12,677       6,329   11,537     12245               2,304,325 23     11,415            -      301                              68,502 65,993         167      4,082      588      12,160                130,W48 92,031         112                      S-          -              124,847 158,047     11,M94        4,082      889      12,180                324,2%
86,259          19      3,737    10,707                            119,977 430                      -          -            1,163,M 261,911 12,235                                              9              1309,341 43,702        534     (1,490)       (59)        85                125,102
$  14Z196                $  Z247$    IM$$            U85,98.
$   65,769  $  48,462  $    9,221  $    827    $    129        $        232,817 (104,341)      (2,8G7)  (11,599)    (1,571)        (44)              4295,574) 93 (38,572)    43,855      (2,378)     (744)         85                 (62,757) 6O7      1,259          10                                      119,192 5,329                                                                10,735
                                            -            *40,184 48,117    145,107)               11,392                               29,174 15,481          16        (368)   10,648           85               136,528 127,357          867      2,615                                     1,844,826 (642)                                -                             (T,324) 126,715          967      2,615                                   .1,43,502
$  142,196  $      93  $   2MS$     1USm.$           8       $     1*1m ACO        tnofftheSlaWOf Iw           MWO       49
 
Notes Tabl   27.:       I       ceceCne           Afflae   aoosepeqyhf'                                '
Assocation       Physcins       Asscates.W       Association,       Heltcre               Scne Inc.             Inc.           Inc.                 Inc.         Cmraer 6WrS"13         W11*013           V"30/013       6/30"13         6W=*/013           Affiliates Assets Due from Component Units/University                         $         2,172   $     6,019   $S                 $             - $               2   $     8,253 Other Current Assets                                                 71,599         41,813             3,682           8,537                 399         126,030 Capital Assets, Net                                                   50,305         17,226                                   -             3,976           71,507 Other NoncurrentAssets                                               25,120             75                                   - .             .           25,195 Total Assets                                                             149,196         65,133             3,682           8,537               4         : 230,985 Uabilities Duet~oComponient Units/University                                                     2,032                   -             755             2,161           4,948 Other Current Liabilities                                             10M08           9,420               160               44             1,907           21,600 Noncurrent Liabililties                                               38,82_6_73                             -                 -                 -___     45,564 Total Liabilties                                                         4.8,8         18189                 180             799             4,M8           72,112 Net Position NetlInvestmntin Capital Assets                                         10023           9.                     .-                             3,976           23,781 Unrestrictedt                                                         90,277         37,182   _         3,522           7,739             (3,607)         135,092 TrotalN rotoition                                               $       100,30         4o6,94.4 $         3=     $       7,738   $               I6       15"nIS~
CNESDSTATEMENTOF RVN             ES,PEfNSES. AND CHIANGES I NET POS1ION Operating Revenues                                               $ 360,968         $   192,309   $       17,253   $       1,452   $             215   S 578,197 Operating Expenses                                                     (103,003)       (94,401)             (256)           (367)           (29,925)         (227,952)
Operating Income (Loss)                                                 257,965         97,908             16,997           7,085           (29,710)         350,245 Nonoperating Revenues (Expenses)
Investment ncome,Net of Expenses                                         371             23                 2               3                                 399 Net Increase in the Fair Value of Investments                           1,138                                 -                 -                 -           1,138 Other                                                               (2.57,469)     (97,855)           (16,825)         (8,314)           29,710         (350,553)
Ch~ange inNet Position                                                     2,005           276               174         (1,228)   _       __                 1,229 Net Position, Beginning of Year                                           98,295         46,668             3,348'         8,964                   369       157,644 Adjustmentsto Beginning NettPosition                                             -             *                 - ____.     _   _,   .........                .
Net Position, Beginmnng ofYear, as Restated (Nota 2)                     989           46,6.8             3,348           9.864                   369       157,644 N--------b-
 
202-2013 Aaua/ fincicolRelirt Shands its 3te Swap 108,270 Operating Re                                       $
11,640         (6)           11,634 (2,50)         -
(117.091)   (25,312)       (142,403) 9
                                                                      -----2&#xfd; 987,531 AdjustiT                 gNet Net Position, Beginning of Year, Neot Psosion, End of Yew lordda 151
 
Notes Tal 29 Semn       Ifraio Depewbueof Husing Trmspouldles and               and Resdience Parking Service                   Educaton 0S3S13                     W5IV13 CONDENSED STATEWMNT OF NET POSmON Assets Current Assets                                                 $            8,884,949  $              4,452,026 Capital Assets, Net                                                         39,582,818                104,855,123 Other Noncurrent Assets                                                                               22,399,910 Total Assets                                                                                   _        131,707,059 Liabilities Current Liabilities                                                         2,896,352                10,087,257 Noncurrent Liabilities                                                      22,45894           ____    67,139.555 Total Liabilities                                                              25255,300                 77,226,812 Net Position Net Investment inCapital Assets                                            17,M4,680                 54,961,078 Restricted                                                                  7,122,732                   1,878,535 Unrestricted                                                                6,129,211                 (2,1%9.36W)
Totl Net Posien                                                  $           3%910152     $             54AS247 CONDENSED STAM MENT OF REVENUES, EXPENSES, AND CAGES INNET POSITO Operating Revenues (Expenses):
Operating Revenues                                            $            21,451,438  $            48,678,910 Depreciation Expense                                                        (2,343,8M)                  (4,648,104)
Other Operating Expenses                                                  (16,739,884)              (37,360,146)
Operating Income                                                                2,367,696                  6.670,660 Nonoperating Revenues (Expenses):
Investment Income                                                                80,140                    250,166 Interest on Capital Asset-Related Debt                                      (1,118,%5)                (3,125,180)
Other                                                                        (1,036,530)                (2,723,042)
Transfers                                                                    (1,097,21)                    959,e66 Net Nonopereting Revenues (Expenses)                                           (3,172,016)                (4,638,400)
Change in Not Position                                                           (804,320)                2,032,260 Net PositIon, Beginning of Year                                               31,360,943                52,447,987 S
Naot Poeien, End f Year                                                                           $54AM4127 CONDENSED STATEENT OF CASH FLOWS Net Cash Provided (Used) by:
Operating Activities                                           $            6,472,594  $            12,104,118 Noncapital Financing Activities                                                 (29,817)              (11,M6,629)
Capital and Related Financing Activities                                   (4,029,646)              (14,053,016)
Investing Activities                                                       (2,412,991)                  8,181,422 Net Increase (Decrease) in Cash and Cash Equivalents                                3,140                (5,124,105)
Cash and Cash Equivalents, Beginning of Year                                           86                  8,130,212 Cash and Cash Eq*ulent, End olfYew                               $ _3,26                  $              3,055,107 52 1 Unlver4tof Flouddo
 
2012-201f3 AoJnrnua inandReport U
U Actumarla                IAA~ass
&up rner~ta Info  t ~
Fiacal  Aiddm  isee fo th:Ya Ene. e 30 20
 
W DAVID W. MARTIN, CPA AUDITOR  STATE OF GENERAL          FLORIDA PHONE: 850-412-2722 AUDITOR GENERAL                              G74 Claude Pepper Building                                          FAX: 850-488-6975 111 West Madison Street Tallahassee, Florida 32399-1450 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS Report on the Financial Statements We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the University of Florida, a component unit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements, and have issued our report thereon dated December 20, 2013, included under the heading INDEPENDENT AUDITOR'S REPORT.                              Our report includes a reference to other auditors who audited the financial statements of the blended and aggregate discretely presented component units, as described in our report on the University's financial statements. Th-is report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the University's internal control over financial reporting (internal control) to determine audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, we do not express an opinion on the effectiveness of the University's internal control.
A defideny in inlernal/ontro/exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis.               A materialweakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the University's financial statements will not be prevented, or detected and corrected on a timely basis.
A sgnifcant defideny is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
A sgnifcant defideny is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
54 1 UnversityofFlorida 2012-2013 Annual Financial Report Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
54 1 UnversityofFlorida
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
 
2012-2013 Annual FinancialReport Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters As part of obtaining reasonable assurance about whether the University's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are requiredto be reported under Government Auditing Standards.
Compliance and Other Matters As part of obtaining reasonable assurance about whether the University's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.
We noted certain matters that we reported to University management in our operational audit report No. 2014-044.Purpose of this Report The purpose of the INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the University's internal control or on compliance.
However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is an integral part of an audit performed in accordance with Government Auditin~g Standards in considering the University's internal control and compliance.
We noted certain matters that we reported to University management in our operational audit report No. 2014-044.
Accordingly, this report is not suitable for any other purpose.Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 A Component Unit of the State of Florida I 55 Executive OfficersDr. J. Bernard Machen President Jane Adams Vice President for University Relations Elias G. Eldayrie Vice President and Chief Information Officer Matthew M. Fajack Vice President and Chief Financial Officer Paula Varnes Fussell Vice President for Human Resource Services Dr. Joseph Glover Provost and Senior Vice Presidentfor Academic Affairs Dr. David S. Guzick Senior Vice Presidentfor Health Affairs Jamie Lewis Keith Vice President and General Counsel David E. Kratzer Vice President for Student Affairs Thomas J. Mitchell Vice Presidentfor Development and Alumni Affairs Dr. David P. Norton Vice Presidentfor Research Dr. Jack M. Payne Senior Vice President for Agriculture and Natural Resources Dr. Winfred M. Phillips Senior Vice President and Chief Operating Officer Curtis A. Reynolds Vice Presidentfor Business Affairs Principal Finance and Accounting Officials Michael V. McKee Assistant Vice President and University Controller Brad S. Staats Assistant Vice President for Contracts and Grants Accounting Services Bradley W. Bennett SeniorAssociate Controller for University Disbursement Services, Asset Management and Cost Analysis Stuart E. Hoskins Senior Associate Controller for University Bursar and Treasury Management Kim C. Simpson Senior Associate Controller for Operational Controls and Efficiencies Kathleen M. Tillett Senior Associate Controller for General Accounting, Financial Reporting, Payroll and Tax Services 56 1 Universityof Florida}}
Purpose of this Report The purpose of the INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the University's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditin~g Standards in considering the University's internal control and compliance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 AComponent Unitof the State of Florida I 55
 
Executive Officers                                      Principal Finance and Dr. J.Bernard Machen                                     Accounting Officials President Michael V. McKee Assistant Vice Presidentand University Controller Jane Adams Vice Presidentfor University Relations Brad S.Staats Assistant Vice Presidentfor Contracts and GrantsAccounting Services Elias G. Eldayrie Vice Presidentand ChiefInformation Officer Bradley W. Bennett SeniorAssociate Controllerfor University DisbursementServices, Matthew M. Fajack Asset Management and Cost Analysis Vice Presidentand Chief FinancialOfficer Stuart E. Hoskins Paula Varnes Fussell SeniorAssociate Controllerfor University Bursarand Treasury Vice Presidentfor Human Resource Services Management Dr. Joseph Glover Kim C. Simpson Provost and Senior Vice PresidentforAcademic Affairs SeniorAssociate Controllerfor OperationalControlsand Efficiencies Dr. David S. Guzick Kathleen M. Tillett Senior Vice PresidentforHealth Affairs SeniorAssociate Controllerfor GeneralAccounting, FinancialReporting,Payrolland Tax Services Jamie Lewis Keith Vice President and GeneralCounsel David E. Kratzer Vice Presidentfor Student Affairs Thomas J.Mitchell Vice PresidentforDevelopment and Alumni Affairs Dr. David P. Norton Vice PresidentforResearch Dr. Jack M. Payne Senior Vice Presidentfor Agricultureand NaturalResources Dr. Winfred M. Phillips Senior Vice Presidentand ChiefOperatingOfficer Curtis A.Reynolds Vice PresidentforBusiness Affairs 56 1 Universityof Florida}}

Revision as of 01:22, 4 November 2019

Univ. of Florida - Responses to Request for Additional Information Regarding Financial Information
ML14255A368
Person / Time
Site: 05000083
Issue date: 09/04/2014
From: Shea B
Univ Of Florida, Gainesville
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
TAC ME1586
Download: ML14255A368 (68)
v • d • e


Text

UFUNIVERSITY 9f College of Engineering PO Box 116134 UF Training Reactor Facility Gainesville, FL 32611 352-392-2104 bshea@ufl.edu September 4, 2014 U.S. Nuclear Regulatory Commission 10 CFR 50.4, Written Communications ATTN: Document Control Desk UFTR Operating License R-56, Docket 50-83 Washington, D.C. 20555-0001

Subject:

UFTR Responses to Request for Additional Information (TAC NO.

ME1586)

In July 2002, the UFTR submitted a request for license renewal (ML022130145). In February 2010 and May 2010, the UFTR provided supplemental information intended to update the financial information made previously in the license renewal process (ML100610445 and ML101250177).

By letter dated June 9, 2014, the NRC requested updated financial information since some of the previously provided information may be outdated (ML1321A048). Attached are the UFTR responses to this most recent request including the revised SAR Chapter 15.

This submittal has been reviewed and approved by UFTR management and by the Executive Committee of the Reactor Safety Review Subcommittee.

I declare under penalty of perjury that the foregoing and attached are true and correct to my knowledge.

Executed on September 4, 2014.

Brian Shea Reactor Manager cc: Dean - College of Engineering Reactor Safety Review Subcommittee Facility Director Reactor Manager Licensing Engineer NRC Project Manager Ao/o The Foundationfor The Gator Nation An Equal Opportunity Institution

1. The NRC staff will analyze the financial statements for the current year, which are requiredby 10 CFR 50. 71(b), to determine if the UF isfinancially qualified to operate the UFTR. Since UF'sfinancialstatements included with the applicationare out of date, provide a copy of the latest financialstatementsfor the NRC staff's review.

Enclosed you will find a copy of the latest UF annual financial statement.

2. Pursuantto 10 CFR 50.33(f)9(2), "[t]he applicantshall submit estimatesfor total annual operatingcosts for each of the firstfive years of operationsof the facility. "Since the information included in the applicationis now out of date, provide the following additionalinformation:

(a) Projectedoperatingcosts of the UFTR for each of the fiscal years (FYs) 2015-2019 (the firstfive year periodafter the projected license renewal).

Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July 1 to June 30 (i.e. FY15 runs from July 1, 2014 to June 30, 2015).

Year Salary Other Personnel Services Operating Expenses Total FY 15 $325,933 $45,716 $122,525 $494,174 FY 16 $335,711 $45,716 $122,525 $503,952 FY 17 $345,782 $45,716 $122,525 $514,023 FY 18 $356,156 $45,716 $122,525 $524,397 FY 19 $366,841 $45,716 $122,525 $535,082 FY 20 $377,847 $45,716 $122,525 $546,088 FY 21 $389,182 $45,716 $122,525 $557,423 (b) UF's source(s) offunding to cover the operatingcosts for the above fiscal years.

The source of funding is unchanged.

3. The applicationreferences a decommissioning cost estimatefor the UFTR that states that the decommissioning cost estimate was $3.28 million in 2009 dollars, and includes a 25 percent contingencyfactor. The NRC staff needs the following additionalinformation to complete its review of the UFTR decommissioning cost estimate:

(a) A current decommissioningcost estimate in 2015 dollarsfor the UFTR to meet the NRC's radiologicalrelease criteriafor decommissioning the facility for unrestricteduse, pursuantto 10 CFR 50. 75(d)(2). Accordingly, describe the basis for how the cost estimate was developed (i.e., state the references for the decommissioning cost estimate).

Based on the most recent Waste Burial Adjustment Factor (NUREG-1307) and July 2014 Page I of 3

Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The basis for the cost estimate development is unchanged.

(b) A summary of total decommissioning costs by labor,waste disposal, other items (such as energy, equipment, and supplies) in currentdollars, and a 25 percent contingencyfactor.

The summary of total decommissioning costs is unchanged.

(c) Provide a numerical example showing how the 2015 cost estimate will be updated periodicallyin the future.

The numerical example is unchanged.

4. The application indicates that UFplansto use a statement of intent (SOI) as the method to provide decommissioningfunding assurance,as provided for by 10 CFR
50. 75(e)(1)(iv). Where the applicant intends to use a SOI, the NRC stqff must find that the applicant "is a Federal,State, or local government licensee. " To make thisfinding, the applicant must state that it is a State government organizationand that the decommissioningfunding obligationsof the applicantare backed by the State government, and also provide corroboratingdocumentation. Further,the applicantmust provide documentation verifying that the signatory of the SOI is authorizedto execute saiddocument that binds the university. This document may be a governing body resolution, management directive, or otherform thatprovides an equivalent level of assurance.As the applicationdoes not include all of the above information,submit the following:

(a) An updated SOI which includes the current(2015 dollars) cost estimatefor decommissioning, a statement thatfunds for decommissioningwill be obtained when necessary, and the signatory's oath or affirmation attesting to the information.

Based on the most recent Waste Burial Adjustment Factor (NUREG- 1307) and July 2014 Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03 million. The decommissioning funding assurances provided in the prior SOI are unchanged.

(b) Documentationthat corroboratesthe statement in the applicationthat UF is a State agency and a State of Floridagovernment licensee under 10 CFR

50. 75(e)(2)(iv).

The enclosed UF annual financial statement corroborates the statement in the application that UF is a component unit of the State of Florida.

Page 2 of 3

(c) A statement as to whether the decommissioningfinding obligationsfor the UFTR are backed by the State of Floridagovernment. The applicationmust alsopresent documentation that corroboratesthis statement. For example, the documentation may be a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioningfunding obligations,of the applicant are backed or supported by the full faith and credit of the State of Florida,or an opinion of the applicant's General Counsel with citations to statutes, regulations,and/or case law that the obligations, or at least those with respect to the decommissioningfunding of the applicant are obligationsbacked or supportedby the full faith and credit of the State of Florida.

The Florida Constitution and Florida Statutes make clear there is an obligation for the State of Florida to provide financial support to the University in its obligations.

Page 3 of 3

CHAPTER 15 FINANCIAL QUALIFICATIONS

Rev. 0 8/26/2014 Chapter 15 - Valid Pages i Rev. 0 8/26/2014 ii Rev. 0 8/26/2014 15-1 Rev. 0 8/26/2014 i

Rev. 0 8/26/2014 TABLE OF CONTENTS 15 FINANCIAL QUALIFICATIONS 15-1 15.1 Financial Ability to Operate the UFTR 15-1 15.2 Financial Ability to Decommission the UFTR 15-1 ii

Rev. 0 8/26/2014 15 FINANCIAL QUALIFICATIONS 15.1 Financial Ability to Operate the UFTR Total annual operating cost estimates for the UFTR are shown below. These costs estimates are for the respective fiscal years which run from July I to June 30 (i.e. FY15 runs from July 1, 2014 to June 30, 2015). The salary numbers include benefits (fringe).

Year Salary Other Personnel Services Operating Expenses Total FY 15 $325,933 $45,716 $122,525 $494,174 FY 16 $335,711 $45,716 $122,525 $503,952 FY 17 $345,782 $45,716 $122,525 $514,023 FY 18 $356,156 $45,716 $122,525 $524,397 FY 19 $366,841 $45,716 $122,525 $535,082 FY 20 $377,847 $45,716 $122,525 $546,088 FY 21 $389,182 $45,716 $122,525 $557,423 Funding for the UFTR is appropriated by the State of Florida. This funding includes money for salaries and expenses but no large pieces of equipment. Items in this category are handled with occasional direct allocations either from the College of Engineering, the University, or from external Grants and Awards.

In addition, these cost estimates do not include infrastructure services provided by the university such as building heating, air conditioning, electricity, and water.

The UFTR occasionally performs some commercial services, however, the commercial work comprises less than 1% of the ownership and operating costs associated with the facility. Therefore, the UFTR should continue to be licensed as a Class 104(c) facility.

15.2 Financial Ability to Decommission the UFTR Facility The estimated cost of decommissioning the UFTR is $4.03 million as of August 19, 2014.

The decommissioning cost estimate for UFTR is based on actual vendor price quotes (Coughlin, 2009),

prior experience with reactor disassembly, NRC Decommissioning Guidance (NUREG-1757, 2006), and decommissioning experience of other research reactors (Marske & Hertel, 2001). The cost estimate takes no credit for salvage value of any reactor components. The decommissioning cost estimates are updated annually. The updates include adjustments based on the Consumer Price Index (CPI) and Low-Level Waste Disposal factors (NUREG- 1307).

The University of Florida is a state institution and thus, according to the provisions of 10 CFR 50.75(e)(1)(iv), the funds needed for decommissioning will be obtained when necessary. The UFTR will likely choose the DECON decommissioning method.

15-1

I' 2012-2013Annual FinancialReport What isthe value of technology unless itmoves us forward insome practical and beneficial way? Just how imo iat isSl.cre unless it changes hvis or the better?

At the University of Florida, a steadfast and overarching commitment drives us not only to focus Table of Contents on life-changing science, but also to apply that President'sMessage ............................................ 2 knowledge and change people's lives. Few, ifany, other public research universities can match UF's University of Florida Overview success at transferring technological and scientific Lives Changed Every Day ............................... 4 achievements to the real world. Living More Safely ....................................... 6 Lives Reclaimed ........................................... 8 It begins inhundreds of UF facilities pursuing Living Innovation ......................................... 10 thousands of often-groundbreaking studies. It Knowledge by the Numbers .......................... 12 happens in classrooms, where students learn to think infresh and innovative ways. It progresses in Introduction from the Vice Presidentand Chief dozens of labs, accelerated by the unimaginable FinancialOfficer.......................................... 14 computing speed of HiPerGator. Itisperfected and Independent Auditor's Report commercialized by entrepreneurs, corporations on FinancialStatements ............................... 16 and investors, many of whom benefit from UF's Management's Discussionand Analysis................... 18 own highly successful business incubators and who Basic FinancialStatements go on to build successful businesses that create Statement of Net Position............................. 25 thousands of jobs.

Statement of Revenues, Expenses, Inthe end, our lives are affected in numerous and Changes inNet Position....................... 26 ways - some simple, like better tasting tomatoes; Statement of Cash Flows............................... 27 some historic, like saving the Statue of Liberty; Notes to the FinancialStatements .................... 28 some essential, like safer hospital operating OtherRequired Supplementory Information environments; and some inspirational, like giving Schedule of Funding Progress-injured soldiers back the use of damaged limbs. Other Postemployment Benefits Plan............. 53 Lives changed, inthousands of ways, in Supplemental Information hundreds of places all around the world. FinanciolAidAdministered............................ 53 IndependentAuditor's Report on Internal ControlOver FinancialReporting and on C,*ances are good we've Compliance and Other Matters.................... 54 changed your life as well.

2012-2013 Annual FinancialReport Public discussion of the State's 2013 remNkenr eeOuis~ a has focused on how the law will s pport the University of Vorid inrising among the ranks of the Nation's best pu lic Ji¢versities.

While that iscertainly a goal, there is a deeper and The research envisioned inthe other proposals is more general benefit. also far-reaching.

By enabling UF to hire dozens of leading scientists We will support new faculty whose work seeks and scholars, the law will underpin research that to discover and develop new drugs, improve extends the boundaries of human knowledge and mathematical modeling of epidemics and enhance improves people's lives. This outcome will augment human understanding of neuroscience and the brain.

UF's legacy of contributing to the economic prosperity We will also fund efforts to improve early childhood of our State and Nation - a legacy that dates to our education, make manufacturing more efficient and founding charter as a land-grant university. strengthen cybersecurity.

Big Data and Other Frontiers AWidening Impact As this year's financial report makes clear, UF UF has committed to matching the State research has spurred important steps forward in preeminence funding with private dollars raised agriculture, medicine, technology and most other through the UF Foundation. Indeed, we will fund a essential aspects of modern life. second round of preeminence research proposals in The preeminence law gives us an opportunity to late 2013.

focus on new advancements in areas of great Inconjunction with these efforts, the UF Foundation future promise. has pledged to raise $800 million to create more We took the first big step toward this goal inOctober, than 100 new endowed professorships and chairs when we selected 16 proposals put forward by UF for accomplished faculty members over the next faculty to receive the bulk of the first round of $15 three years.

million inState preeminence funding. Itwill take time to identify and hire the scientists The proposals, which seek to advance new frontiers and scholars who will help us reach our ambitions, inhealth, computing, agriculture and the life and the results will hardly be immediate. But UF has sciences, are as diverse and comprehensive as our a vibrant, growing and highly regarded technology University. But they share a common feature of commercialization enterprise that iswell positioned occupying the technological or scientific vanguard. to capitalize on these new faculty members' discoveries and innovations.

We see this feature, for example, ina proposal to explore new uses for the trillions of gigabytes of As UF scientists and entrepreneurs drew on nerve information now being generated by computers and regeneration research to pioneer new techniques sensors worldwide - a rapidly emerging field known to restore damaged nerves, and as they are tapping as Big Data. hurricane research to build stronger houses, so they will also make the most of the research spurred by Put forward by multidisciplinary teams of UF the preeminence funding.

scientists, engineers, artists and educators, this research explores ways to tap Big Data to predict As a result, we can be confident that the preeminence disease outbreaks, forecast the effects of climate initiative will not only prove a benefit to UF but also to change, improve online education and much more. Florida's economy - and to people everywhere.

We are so enthusiastic about the potential, we selected the Big Data proposal to receive the highest proportion of the preeminence dollars - $3.8 million.

J. Bernard Machen President,University of Florida A Component Unit of the State of Florida I3

6,000 im-metfl oneI suItdeets stody"!q at U1oho wil6/ use their ;,ew kn*owiede to im, rove lives 61!

over the world.

Throughout the years, the Clearer Vision. The odds are that you or someone close to you suffers from glaucoma. It University of Florida has affects millions of individuals inthe U.S. alone.

Fortunately, UF scientists had a vision and created worked to improve the the breakthrough drug Trusopt. Alife-changing discovery, Trusopt relieves the symptoms of everyday lives of people. glaucoma and isrelatively free of the side effects associated with other drugs used to treat the lncluding you. Improving disease. One small eye drop and thousands of lives changed.

what you taste, how you see, Slower Growing, Less Mowing,.

The University ofFlorida Shellfish Aquaculture Extension and even your pet's health UF horticulturist Dr. Russell Nagata isan unsung hero to countless Americans faced with the Programprovides educational, technical and organizational are all ina day's work at the never-ending task of mowing the lawn. He created support to the clam forming industry inFlorida. In1995, a Captiva, a much slower-growing type of St.

University of Florida. Augustinegrass. Captiva grows between one-and- position was createdwithin the UF/IFAS Extension to assist a-half and two-and-a-half inches a week, compared the emergent industry on ATastier Salad. UF's tomato breeding program with the three-to-five inches rate of typical grass. Florida's west coast.

dates back to 1922. So when consumers craved Less mowing also means less fuel to buy. But that's a redder, tastier, juicier tomato, who better to not all. Captiva offers one additional benefit: Itis accept the challenge than our own horticulturists?

considerably more resistant than other varieties to After years of research, they created a naturally lawn-killing chinch bugs.

developed, vine-ripened hybrid and named it Tasti-Lee@. Salad and sandwich lovers have been More Purrs. Cats do not have nine lives. So, to grateful ever since. enhance the quality of their one precious life, UF researcher Dr. Janet Yamamoto developed Solutions for Your Life. Helping small farmers a feline AIDS vaccine. Her most recent research grow grapes innorthwest Florida. Organizing 4-H with the vaccine has revealed that the FIV protein camps that offer kids a place to experience and also stimulated human Tcells to produce anti-HIV Ina State thatproduces one appreciate nature. Educating residents about the activity. The connection between feline AIDS and HIV billionsquare feet of turfgrass importance of agriculture. Those are just a few of each year, there is literallya lot may eventually lead to a vaccine for humans and the ways that UF/IFAS Extension touches the lives ofground to cover.Adedicated an even better vaccine for cats. So, the furry felines of Floridians inall 67 counties. UF/IFAS Extension is team of researchersat UF

- and the people they own - can look forward to dedicated to developing knowledge in agriculture, analyzes Florido'sgross, as well longer lives together. as the soilbeneath it and pests human and natural resources, and the life sciences, that pose a constantthreat.

and to making that knowledge accessible inorder to sustain and enhance the quality of human life.

Each of Florida's67 counties has a UF/IFAS Extension office, which provides residents with scientificknowledge 07 to sustain and improve the quality of human life inareas rangingfrom agriculture, home gardening,and health and nutrition, to home finances, disasterpreparedness,and family relationships.UF/IFAS researchcenters and demonstrationsites around the State provide Floridaand the entireNotion with researchborne knowledge used to help farmers, ranchers,growers, and others feed the world.

AComponent Unit of the State of Florida I 5

5hwo' 1995. thaueks to the Soicn

~omitocolny tir~who sstM.

Science and technology Longer Lasting Liberty. The proud lady has stood, torch in hand, inNew York generated inthe laboratories Harbor since 1886. She, infact, may be the most iconic of all American statues and monuments.

at UF help produce one But in1994, the Statue of Liberty had a problem:

termites. Her condition worsened until 1996, when extremely valuable Sentricon came to the rescue. Developed by University of Florida entomologists and DowElanco commodity: peace of mind. (now Dow AgroSciences), Sentricon is an Extensive researchby OF engineers has enabled environmentally friendly termite control technology. homebuildersto create safer, Our homes are safer. Our lives For nearly 20 years, Sentricon has been on the sturdierstructures thatprotect job not only on Ellis Island, but also inhomes across families duringsevere weather are healthier. And our hopes the Nation, including a big white one at 1600 andbetter withstand the test Pennsylvania Avenue. of time.

are higher. Not just because ABetter View. Ittakes special skills to fly someone had a good idea, but over crops and instantly send back video and because they also had the stills for farmers to analyze and potentially detect disease, irrigation or fertilizer issues, predict crop passion to make itwork. yields and more. And who would be willing to ride along with a hurricane, collecting data to help Sturdier Homes. Why would wind engineers scientists predict the intensity and trajectory of the at the University of Florida develop the world's storm? Drones are capable of both assignments and largest portable hurricane simulator? Aren't UF doesn'tjust study are on the job at the University of Florida. Equipped hurricanes, we createthem.

there enough real hurricanes already? That's with sensors and cameras, these unmanned aerial Our hurricanesimulatorcan exactly why. By creating and controlling their own vehicles are helping UF soar to new heights in create the wind and rain hurricanes, UF engineers are able to experiment research. producedby a Category-3 with building materials to determine which are the storm to study its effects and most storm-resistant. The hurricane simulator can Healthier Hospitals. Even a Gator can learn help buildersand residents alike more effectively prepare create the effects of a Category-3 (Katrina-sized) from a shark. Dr. Anthony Brennan studied the for the real thing.

storm, complete with wind and rain. So, while we'll antimicrobial properties of sharkskin in hopes of probably never be able to prevent hurricanes, we finding ways to reduce the buildup of barnacles can find better ways to prepare for them. on submarines. He and his team at the UF College of Engineering then replicated the microscopic diamond shapes to create the world's first technology to inhibit bacterial growth through pattern alone.

That'sthe numberof cropsgrown and harvestedinFlorida,more than any otherstate in the Nation. It's also why food safety education is a criticalarea for UF'sInstitute of Food 300+ andAgriculturalSciences. The UF/IFAS ServSafeO programhelps protect Floridaresidents andvisitors from foodborne illness by trainingfoodservicepersonnelinpropersanitation andfood handlingpractices.From 2007to 2012 the programcertified more than 2,700 participants,many of whom were able to secure better-payingjobs as aresult. AComponent Unit of the State of Florida I 7

( M, k.l pf~oients SeenJirlfh, LIE IipalteI Sharos P0,d/i~rnctEl

..EYK!Z1O. 12 OT While not all inventions affect so, they paved the way for Banyan Biomarkers, the leader inblood test-based diagnostic products people immediately, directly for the detection of traumatic brain injuries.

Someday soon, physicians will know almost and personally, there isthat immediately the extent of a brain injury and will be able to treat - and even save the lives of - soldiers, select group of innovative accident victims, and athletes.

achievements that have a Faster Drying Tears. Achildren's emergency room Navy corpsmanEd Bonfiglio isprobably the last place a parent wants to go.

profound and lasting impact But should the need arise, families inGainesville are fortunate to have the Pediatric ER at UF Health on the individuals they touch. Shands Hospital nearby. All UF Health pediatric teams are now located ina single building, with Insome cases, they change a child-focused environment. This enables us to better serve our young patients and their families.

lives. Inothers, they save lives. The entrance welcomes them into fun and colorful Better Futures. AxoGen, Inc., provides critically surroundings. Once inside, the children and young wounded soldiers with what they most deserve and adults will experience quality, streamlined pediatric desire: a second chance. The University of Florida's care so they can get back to their lives.

McKnight Brain Institute developed technologies for nerve grafting and regeneration. Marketed under Greater fope. Quite often, people lack the ability the name Avance, the technique allows surgeons to change their own lives as much as they'd like to reconstruct damaged peripheral nerves so that to. Drug and alcohol addiction are formidable the central nervous system can communicate with opponents. UF Health Florida Recovery Center muscles or organs throughout the body. When iskeenly aware of that and offers help to those Navy corpsman Ed Bonfiglio was shot inthe left leg fighting substance abuse. The doctors, therapists, while on patrol inAfghanistan, doctors successfully counselors and representatives have an intimate employed this procedure. As a result, Ed still has understanding of recovery and help isavailable any both of his legs. And a much brighter future. time of day, every day of the year. Affiliated with the UF Department of Psychiatry, the Center has a main ANew View of the Brain. Asimple blood test office near campus and four satellite offices serving to detect traumatic brain injuries? Ifthat sounds the rest of Florida. The UFHealthShands revolutionary, itis.Researchers at UF's McKnight PediatricER Brain Institute discovered proteins from the breakdown of dying brain cells inblood. Indoing That's the amount UFspentin2011 on researchand development, rankingit 12th among the

$740m Nation's top publicresearchuniversities.Among the discoveriesthat have risenfrom the innovative and creative minds of UFresearchers:a test that uses peanutbutter to confirm anAlzheimer's diseasediagnosis;softball-sized satellitesthat con be built cheaply and launchedquickly; the Tasti-Lee@ tomato that can survive shipping and still taste great;the Sentricon Termite Colony EliminationSystem; the glaucomadrug Trusopt;and, of course, Gatorade. AComponent Unit of the State of Florida I 9

I I

wkholoies accovpted to?

90 Percent ofthe total for the entine Stoic doiversity system.,

UF has become afertile its "community" an opportunity to collaborate with UF's 4,000 talented researchers, whose annual ground for innovation. research awards total $641 million.

Not only isthe University a Faster Startups. Ifyou've ever heard the question, "Where do you come up with your ideas?"

springboard for new ideas, some could answer, "At The Florida Innovation Hub at UF." Located inthe heart of Innovation products and businesses, Square, this 48,000 square-foot facility serves The 4,000 square-foot InnovationNews Centerat as an incubator for startup companies based on the UF College ofJournalism it's also changing the way technologies emerging from UF laboratories. and Communications houses By enabling businesses to devote their limited state-of-the-artbroadcasting people responsible for that resources to technology and market development equipment, television and radio editing rooms, audio rather than operational costs, Innovation Hub has innovation are learning and attracted more than two dozen startup tenants and booths, a mini-studio, and nearly 100 seats for reporters, led to the creation of 250 jobs in its first 20 months collaborating. Meanwhile, just of existence.

producersandeditors. It is also home to the College's many distributionchannels, ashort walk east of campus AMinor Revolution. The spring semester of 2013 which includessix radio and TV/stations serving North will reveal how UF ischanging welcomed not only new students to the University of Florida but also an entirely new concept in CentralFlorida.

the landscape of higher higher education: the Innovation Academy. One of the Nation's most forward-looking undergraduate education. And Gainesville. programs, the IAoffers a select group of students the opportunity to choose from several majors Community Redefined. This is Innovation offered by various colleges while concentrating on Square at the University of Florida. People work one minor: innovation. With courses concentrating here, and soon people will live and play here, too. on creativity, entrepreneurship, ethics, and A40-acre research community, Innovation Square leadership, the program is designed to prepare has created an environment where synergy is students for living and working intoday's global inevitable. Where the line between social and economy. Even its schedule is unique. Students are As Gatoradeapproachesits business interactions has been virtually erased. 50th birthday,the industiy-enrolled during the spring-summer academic year, launching sportsdrink Where diverse individuals and ideas come leaving them free to pursue off-campus interests, deserves recognitionfor the together to create even greater ideas. And where including internships, during the fall semester. licensing income it continues products move from the mind to the marketplace. to produce for the University Innovation Square also provides the residents of of Florida.And that wasJust a start.Products thathave evolved from UFlabs to the marketplace continue to generate substantialrevenue, which inturn is invested to 150 trillion That's the number ofcalculations UF'snew supercomputercan perform inone second.

HiPerGatoris the fastest computer inthe State and one of the fastest inthe countly.

Its amazingspeed andpower can help researchersfind life-saving drugs, forecast weather decadesinadvance, and even design more effective armorfor troops.

fund furtherresearch.

AComponent Unitof the State of Florida I 11

Knowledge by the Numbers

~,aa3 I'S S .3 I ColIe/School 2012 2011 2010 2009 2O59 Accounting 857 865 905 871 897 Agricultural and Life Sciences 4,835 4,955 4,940 4,640 4,557 Building Construction 383 391 499 581 616 Business Administration 4,985 4,681 4,728 4,947 5,539 Dentistry 385 389 378 379 389 Design, Construction, and Planning 855 896 899 899 921 Division of Continuing Education (A) 141 179 215 259 275 Education 1,732 1,749 1,886 1,919 1,940 Engineering 8,716 8,454 8,240 7,880 7,696 Fine Arts 1,294 1,256 1,309 1,284 1,254 Forest Resources and Conservation - - - 222 215 Health and Human Performance 1,973 2,047 2,008 1,908 1,970 High School 57 52 47 44 -33 Interdisciplinary Ecology 104 116 127 135 131 Journalism and Communications 2,693 2,540 2,516 2,663 2,957 Law 1,105 1,118 1,191 1,263 1,340 Liberal Arts and Sciences 12,514 12,673 12,817 13,368 14,315 Medicine 823 862 853 967 867 Multiple-College Program 1 1 2 -

Natural Resources and Environment 120 155 154 158 142 Nursing 1,162 1,170 1,090 1,188 1,160 Pharmacy 847 823 836 761 , 689 Pharmacy Doctor 1,584 1,686 1,752 1,891 1,841 Physician Assistant Program 119 119 119 119 119 Public Health & Health Professions 2,213 2,122 2,139 1,971 1,803 Veterinary Medicine 648 542 530 525 507 SUB-TOTAL 50,145 49,841 50,179 50,844 5ZI73 Minus Concurrent Degree 59 56 63 60 61 TOTAL 50,9 49,715 50,116 50,784 5ZI12 (A)Includes Continuing Education and correpondence courses for students not enrolled in a college.

Source: Office of Institutional Planning and Research - UF Facts Degree 2012-13 2011-12 2010-11 2009-10 2008-09 Bachelor's 8,245 8,600 8,685 9,302 9,207 Master's 3,929 3,924 3,878 3,751 3,546 Doctor of Philosophy 880 859 936 957 841 Doctor of Pharmacy 427 461 484 483 474 Juris Doctor 361 334 410 377 424 Doctor of Medicine 131 134 127 130 124 Doctor of Dental Medicine 79 82 83 91 81 Doctor of Veterinary Medicine 86 84 87 89 84 Specialist in Education 88 71 70 111 73 Engineer TOTAL 14,226 14,549 14,760 115,29 1 4J8

- ...M -

Source: UF Office of Institutional Planning and Research

2012-2013 Annual FinancialReport In-State Enrollment by County -Fall 2012 Total In-State Enrollment:

40,674 Source: Fall Final Student Data Course File Prepared by the UF Office of Institutional Planning & Research Research Awards by Sponsor for 1%

2012-13 fiscal year

  • Federal Agencies

$416,588,245 SFlorida State Agencies 34,758,814 i Corporations &Companies

$70,858,140 Foundations &Societies

$85,765,778 Local &Regional

$6,828,182 SAll$25,853,803 Other Sources TOTAL

$640,652,962 Changing Lives at Home.

As the University of Florida delivers on its And while we continue to affect the lives of people mission of research, teaching, and service, we will throughout the world, the University of Florida continue to attract the best and brightest students, will forever keep a strong focus on the residents, as well as recruit and maintain preeminent faculty. leaders, and businesses in our State to ensure their UF provides students with a learning experience constant well-being and quality of life.

few other universities can offer, while we reward our faculty with the technology and funding needed to perform their remarkable work.

AComponent Unitof the State of Florida I 13

Introduction from the Vice President and Chief Financial Officer I am pleased to present the University of Florida Annual Financial Report for the fiscal year ended June 30, 2013. This report provides useful information concerning the University's financial position and activities for the year. The Management Discussion and Analysis, the financial statements, and the notes to the financial statements document the University's financial success and health for this fiscal year.

During fiscal year 2012-13, Noncapital State Appropriations declined by 8.0%, or $42.4 million.

Inan effort to mitigate that loss, we continued to increase operational efficiencies, utilized sound budgeting, and had limited tuition increases.

Tuition revenue increased $38.5 million, or 8.3%

for the fiscal year. The tuition increases helped offset the reduction inState Appropriations, but did not cover the nearly $4.0 million remaining in lost State support. Even with the tuition increases, the University continues to have among the lowest cost of attendance of all public research universities nationwide and continues to be a great value for the investment.

The University continues to maintain its beautiful and historic campus inspite of the State's significant reductions inthe amount of capital projects funding, including Public Education Capital Outlay (PECO).

2012-2013 Annual FinancialReport Capital State Appropriations totaled $9.5 million, a construction of a new 100,000 square-foot multilevel slight increase of $3.4 million over the prior fiscal structure, and renovation of up to 50,000 square year of $6.1 million. feet of the existing building. The $75 million project During the year, several major construction isfunded through a combination of activity and projects were completed to provide facilities service fees, an investment from the University, necessary for fulfilling the instructional, research, a $41.5 million bond to be issued during the 2013-14 and service missions of the University. These fiscal year, and other sources. Expected to be buildings illustrate the University's diverse nature. completed Fall 2015, the much needed space will accommodate student activities and the University's Completed construction projects include the Clinical Translational Research Building (CTRB). The CTRB is growing student body.

a new home for research that will speed scientific Historic State legislation was passed this year, discoveries to patients. The 120,000 square-foot creating a path for the University to be designated complex will spark collaboration and spur medical a State University of Academic and Research advances by bringing together research teams from Excellence and National Preeminence. House a range of scientific disciplines. Bill 7129 provides tuition and academic flexibility The completed East Campus Data Center ishome to to research universities that meet standards HiPerGator, the University's new high performance established inthe bill for a State university of supercomputer, which has a peak speed of 150 national preeminence. The standards include trillion calculations per second. The HiPerGator isthe selectivity of admissions, student retention, graduation rates, size of endowment, amount of annual giving, most powerful supercomputer inthe State of Florida faculty membership ina national academy, number and will help researchers find life-saving drugs, make decades-long weather forecasts, and improve of patents awarded, number of doctoral degrees awarded, number of postdoctoral appointees, research armor for our troops.

expenditures, and national rankings.

The Lake Nona Research Facility opened November 30, 2012. This facility brings vital research on new The Office of the Vice President and Chief Financial therapies and cures, increased opportunities for Officer is committed to manage effectively the participation inclinical research, and enhanced University's assets and facilitate the business needs access to professional and graduate pharmacy as the University progresses towards being a top ten education to the Orlando area. research university.

The Reitz Union Expansion and Renovation project started inJune 2013. Built in1967, the J.Wayne Reitz Union isthe heart of campus, a center of student activities and involvement. The project includes the Matthew M.Fajack Vice Presidentand Chief FinancialOfficer AComponent Unitof the State of Florida I 15

AUDITOR GENERALA STATE OF FLORIDA G74 Claude Pepper Building DAVID W. MARTIN, CPA 111 West Madison Street PHONE: 850-412-2722 AUDITOR GENERAL Tallahassee, Florida 32399-1450 FAX: 850-488-6975 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT Report on the Financial Statements We have audited the accompanying financial statements of the University of Florida, a component turit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal gyear ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements as listed in the table of contents.

Management'sResponsibilit for the FinancialStatements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the prepatation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditot's Responsibiity Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the blended and the aggregate discretely presented component units, as described in note 1 to the financial statements. The financial statements of the University of Florida Self-Insurance Program and the University of Florida Healthcare Education Insurance Company, blended component units, represent 5.6 percent, 4.7 percent, and 1 percent, respectively, of the assets, net position, and revenues, reported for the University of Florida. The financial statements of the aggregate discretely presented component units represent 100 percent of the transactions and account balances of the aggregate discretely presented component units' columns. The financial statements of tie blended and aggregate discretely presented component umts were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the blended and aggregate discretely presented component units, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govern;etil Auditing Slandards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

16 I University of Florida

2012-2013 Annual FinancialReport Opinions In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented component units as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the fiscal year then ended, in accordance with accounting principles generally accepted in the United States of America.

Report on PartialComparativeInformation We have previously audited the University of Florida's 2011-12 fiscal year financial statements, and we expressed an umnodified audit opinion on those audited financial statements in our report dated December 13, 2012. In our opinion, the partial comparative information presented herein as of and for the fiscal year ended June 30, 2012, is consistent, in all material respects, with the audited financial statements from wlhich it has been derived.

OtherMatters Required Supp/ementag,Infonnation Accounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSION AND ANALYSIS and the SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS PLAN, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, whiich consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University of Florida's basic financial statements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued a report on our consideration of the University of Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements and other matters included under the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the University of Florida's internal control over financial reporting and compliance.

Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 AComponent Unit of the State of Florida 1 17

MD9A Management's Discussion and Analysis From the Vice President and Chief Financial Officer INTRODUCTION AND BACKGROUND NANC HIWIUCTS The Managernent~s Discussion and Analysis (Mfl&A) prvds The University's assets totaled $3.04 billion at June 30, 2013.

an overview of the financial position and activities of the This balance reflects a $4807 million, or 1.6%, increase from the University of Florida (the University) for the fiscal year ended 2011-12 fiscal year. The increase inassets primarily resulted from June 30, 2013, and should be read in conjunction w*t* the new investments held bythe Unive on behalf of component financial statements and notes thereto. This is unts- While total assets reased liabilities also increased required by Governental AccountingStandardsBoard (GASB) by $66.o million or io.9%, totaling $672.3 million at June 3o, Statement No. 35, Basic FinancialStatements - and Management's 2013, as a result of a $65.3 imilion increase in the amount Due Discussioand Analys*is for Public Colleges and Universities, as To Component Units. In consequence, the University's net am.ened by GASB Statem.nts Nos. 37 and 38. The MD&A and position decreasedhby $17.3 million, or 0,7%, resulting in a year-financial statements and notes thereto, are the responsibility of end balance of $2.37 billion. Net position represents the residual University management. interest in the University's assets after deducting liabilities. The University's comparative total net position by category for the fiscal years ended June 30, 2013, and 2012, are shown in the following chart 1 Universit

s ioni ilos 2011-12 fiscal year. M ts of 201- 1 this in(

reven Net non*

thresh

MDSA The University had significant construction activity during finacial statements. This MD&A focuses on the University, the year. Completed or substantialy completed constrution excluding the discretely presented component units. MD&A projects included: (i) Lake Nona Research Facility (capitalized information regarding the component units is included costs of $50.9 million); (2) Clinical Translational Research in their separately issued audit reports, if reporting under Building including the Institute on Aging Research Building GASB standards. Component units reporting under Financial (capitalized costs of $41.7 milhion); and (3) East Campus Data Accounting Standards Board (FASB) standards do not include an Center (capitalized costs of $14.1 million). Construction began MD&A in their audit reports.

or continues on several major projects, including four that, The financial statements characterize revenues and expenses when finished, will be capitalized at over $2oi million: (i) as either operating or nonoperating. The principal component Reitz Union Expansion and Renovation; (2) Chemical Biology of operating revenues is Grants and Contracts ($i.i billion).

Buflding - Chemistry; (3) Harrell Medical Education Building; The principal component of operating expenses is Employee and (4) Heavener Hall- School of Business. Compensation and Benefits ($1.6 billion). A significant portion of the University's anticipated, recurring resources is considered nonoperating as defined by GASB Statement No. 35. The OVERVIEW OF FINANCIAL STATEMENTS principal component of nonoperating revenues for the fiscal year ended June 30, 201 3, is Noncapital State Appropriations ($485 Pursuant to GASB Statement No. 35, the University's financial million). Recurring nonoperating expenses consist primarily of report includes three basic financial statements: the Statement of Other Nonoperating Expenses which includes transfers from the Net Position; the Statement of Revenues, Expenses, and Changes University to its component units.

in Net Position; and the Statement of Cash Flows. The financial statements and notes thereto, encompass the University and its component units, Based upon the application of criteria for determining STATEMENT OF NET POSITION component units, the University of Florida Self-Insurance The Statement of Net Position reflects the assets and liabilities Program (the Program), and the University of Florida Healthcare of the University, using the accrual basis of accounting, and Education Insurance Corporation (HEIC), are included within presents the financial position of the University at a specified the University reporting entity as Wended component units. time. Net position, the difference between total assets and total Additional information regarding the blended component units liabilities, is one indicator of the University's current financial is presented in Notes i and 19 to the financial statements. condition. The changes in net position that occur over time indicate improvement or deterioration in the University's In addition, the University's basic financial statements include financial condition. The following table summarizes the discretely presented component units categorized as follows:

University's assets, liabilities, and net position at June 30:

DirectSupport Organizations - These are separate, not-for-profit corporations organized and operated exclusively to assist the University in achieving excellence by providing Will I 1 -111 __

Health Science Center at the Umversity ot orlomla.

Information regarding the discretely presented c(

units, including summaries of their separately issuec statements, is presented in Notes 1, 2, 3, 6, 9, 12, and 20I Untversltyofflorfdo

lW0MncdaRepor 202-01 Atia EXPENSES, AND operating expenses ý th'

,ýTbdne Staemet ofRvne, xess ich an Chne in Net P sito iiiifo s.Oprtn ~n ilos or tra during the Oea tin Reene Onmllos

'fFlorid f 21

HHOA that about the iurces and 11assist in ash flows,

=ome due, assets, an( rs to co: operating

tivities of iiversity e: ano ý,- in financing long-term debt. Cash flov the net source and use of ,s and eirectoitnese cnanges mcreasea net nonoperaung revenue Dyz5.i sales of investments and ir I on nents.

n-ffllionr The following summarizes the University's nonoperating Cash flows from noncapit those revenues and expenses for the 2o0 2-13 and 2011 -12 fiscal years:

activities not covered in th(

Major sources of fund

  • *

($1,567.1 S ($523.9 al Assets flows for

  • Cn* ~ n ol Cas Flw (i ilos EXPENSES, isom in Cai Appro 3 and 2011-121 J8 Ote Reeus Exess G! aI Or ossai7mljt

CAPITAL 71 a W itments till millions]

for net capital assets of $1.7 billion. Depreciatio current fiscal year totaled $121.4 million. The summarizes the University's capital assets, net depreciation, at June 30o nding

  • WOA

.ý li q.

CAPITAL EXPENSES AND COMMITMENTS Major capital expenses were incurred on the foll

MDSA support ot the Legislature, Govemor, board ot*,.overnors, and r %0,W

  1. -14.,f 141 W M9IWIV.

Trustees for this important strategic goal. The s d t Questions concerning information provided in the MD&A designation include criteria based on spenidming onrsear1ch, six- or other required supplementary information, and financial year graduation rates, number of doctoral degrees awarded, and statements and notesthereto, orrequests for additional financial number of patents awarded. Lawmakers allocated $15 million information should be addressed to Michael V.McKee, Assistant annually for the next five years to support the University Vice President and University Controller, P.O. Box 113200, in its goal of joining the Natiorn' top ten public research Gainesville, Florida 32611.

universities. The University will match these funds dollar-for-dollar through private fundraising, dedicating $30 million 24 1 Uni1versity

20o12.2013 Annual FnanckialReport STAEMET O NET POITIO aso ue3,0I onsxrssdntosns U~slveefy ofFloida -ConporentUrifs(FYin2013J 231 2012 Organiation __________ and______

ASSETS Cash nd Cash Equivalents (Note 1) $ 285 $ 503 $ 29,405 S 63,591 $ 79,734 Inv-tnt e 3) 1,071,094 987,024 196,484 2,469 212,855 Accounts Receivable, Not (Noe 4) 90,802 145,382 99,848 56,138 2M3275 Loans and Notes Receivable, Net (Note 4) 2,821 3,155 Due From State (Note 5) 14,795 31,535 101.885 5,185 Due From Component Units/University (NoteS ) 13,320 5,253 14,386 Inventories (Note 7) 4,570 4,(80 37 3*2 2ZS95 Other Current Assets 1,984 1,824 6,121 3,812 57,576 1^213A34 43X,0 NomTiet Aeeab 19,500 Restricted Cash and Cash Equivalents (Note 1) 21 16 10,441 Restricted Investments (Note 3) 104,053 100.7 1,M00,407 1727 316,093 Loans and Notes Receivable, Net (Note 4) 36,375 37,491 Depreiable Capital Assets, Not (Note8) 1,549,324 18Z,459 65,3M0 748,848 127,797 Nomjepreciable Capital Assets (NoteS8) 53,072 1,4s 116,3'9 74,076 6,147 Other Noncurrent Assets 1,128 182 7,568 226,153 WA7w Toao~wutourw satwocs TOTNAL A33 DIFRRE OUTFLOWS OFIRESOURCE Accumulated Decrease in Fair Value of S 3., MII Interest Rate Swap Agreements 39,425 TOTAL ASSETS AND iDEEPiRRED OUTO OF URCS $ U6,91. $ ZE S z.I3M LIABlNM Accounts Payable $ 75A033 $ 13,373 $ 10,804 S 198,037 Salaries and Wages Payable 19,252 19286 2,389 63,604 uToTComponent Units/University (Note 6) 80,174 14,863 68,502 4,948 Unearned Revenue INote 10) 25,430 25,575 58,466 1,600 Deposits Held in Custody 16,8*6 9,610 500 38 Other Current Liabilities (Note 11) 7,133 8,349 17,108 262 Long-Term Liabilities - Current Portion: (Note 12)

Capital Improvement Debt Payable 7,307 6,919 Bonds Payable 26,685 1.975 23,07 Installment Purchase Agreements Payable 846 868 Capital Leases Payable 129 74 186 2,M8 Compensated Absences Payable 9,143 7,243 300 5,530 Liability for Self-Insured Claims 11,596 15,440 12,125 W.97 toneueart Uilitih (Note 12)

Capital Improvement Debt Payable 112,094 119,385 Bonds Payable 91,210 37,M4 721,324 Loans and Notes Payable 8,000 Installment Purchase Agreements Payable 772 1,077 Capital Leases Payable 3,076 516 6,756 Compensated Absences Payable 104,3M6 90,621 2,8%

Other Postempioyment Benefits Payable 139,775 102Z458 2,040 Liability for Salf-Insured Claimt 44,551 87,39 Other Noncurrent Liabilities 18,768 19,10M 30,742 89,181 TintlNneuuen Lablities 456 1UP*

TOTAL uIA11IJIHES 12Lum 7Z112 NETPOSITION Net Investment in Capital Assets 1,554,445 1,5*70,17 119,977 23,781 283,259 Restricted:

Nonexpendable:

Endowment 1,183,839 97 Endowment 30,088 261,911 11,244 35.653 Capital Projects 64,217 47,251 5,289 DebtService W53 309,341 Other SNO9B 568,081 Unrestricted 119,303 161,189 125,162 741,634 TOTAL ET PosnloM Z,3%1M1 Z935M= 1AN __14092E TOTAL UARJ11W AND NET POSM0N $ 54A1Sl 8 Z39SM $ ziz&m The coppnying notes am amnt pW of se inancials rnmenM A Componenltof State of F/rida 125

asi FinalStatements 2312-13 2MI-12 Organizations Afiiats adod Student Tuition and Fees $ 500,508 $ 462,050 $ - $ - $

Scholarship Allowances (148,064) 141,554)-

Student Tuition and Fees, Net of Scholarship AlIowa nces  : 34 Z"

Federal Grants end Contracts 391,53M 408,728 . -

State and Local Grants and Contracts 44,783 43,085 - -

Nongovernmental Grants and Contracts 643,612 604,723 -

Sales and Services ofAuxliary Enterrises (Note 13) 131,350 129,369 - -

Sales and Services of Educational Departments 51,555 47,771 - -

Sales and Services of Component Units - 113,186  :

Hospital Revenues - - 5W0386 1,=30,629 Gifts and Donations - Component Units 84,290 9,642 Royalties and Licensing Fees - Component Units - 24,897 .

Interest on Loans and Notes Receivable 976 998 - -

Other Operating Revenues 2,524 2,288 10,444 8,169 52,483 TotaluOperaingRees 1,61171 1)57,8 232,817 197... 1,603,112 Employee Compensation and Benefits 1,619,W8 1,522,935 - -

Services and Supplies 460,776 446,578 -

Utities and Communications 64,748 65,675 - -

I~. ~ A~......---U

.- I..- O' MlA oh oifl GisborLs-- 410,717)

Capital State Appropriations 9,484 Ci tcts, Donations, and Student Fees

,ta 13,922 AdtostoPermanet Endowments -

Increase.(Decrase) inNtePouitlo (17=22)

Adjustmentto Beginning Nat Position (Note 2)

Nat Positio, End of Yew ta o s a s $

The acompanying notes are an integral part of these financial statemnnts.

26 I lnAersly of Florid

201-2203 ArrnudFlnancical Repoft Wversityof Florida Uni M213. 2011-12 CASH ROM FROM OPERATING ACTIVITIES Tujition and Fees, Net $ 355,196 318,411 (3rarts and Contracts 1,0KZ254 1,043,057 Sales and Services of Auxiliary Enterprises 13884 117,239 Sales and Services of Educational Departments 51.538 47,609 Repayment of Loans and Notes Receivable from Students 7,75 5,962 Interest on Loans Receivable 1,209 786 Other Operating Receipts 3,073 2,447 Payments to Employees (1,567,072) (1.563.104)

Payments to Suppliers for Goods and Services (523,864) (563,67 Payments to Students for Scholaruhips and Fellowships (82X4) (80,10)

Loans Issued t Students (,06) (6,213)

Payments on Self-Insured Claims and Expenses - (17,397) (7 Not Cub Used by Operatling Activities (SSW98) (627,)

CASH FLOWS FROM NONCAPITAL. FINNCIG ACTIVIT Noncapital State A propriations 485,479 527,880 Federal and State FInancIal Aid 114,094 116,178 State Appropiated American Recovery and Reinvestment Act Funds 2,384 Noncapital Grents, Contracts, and Gifts 84,091 81,077 Direct Loan Program Receipts 253278 245,805 Direct Loan Program Disbursements (253,27) (245,794)

Net Change in ldr Otes 58,500 29 Other Nonoperasing Receipts 948 2,180 Other Nonoperating Disbursements 48.3) -3,979)

Not Cash Provided by Nweephal Financin Activities 7421 7Mm CASH FROWS FROM CAP1ITL ANI RELATED FINANCING ACTIVmIES Proceedsfrom Capital Debt 5= 270W4 Capita State Appropriations 26,2D4 5089 Capital Grants, Contracts, Donations, and Student Fees 9,548 3,349 Proceeds from Sales of Capital Assets 358 193 Other Receipts for Capital Projects 17 55 Purchase or Construction of Capital Assets (139,187) (179,498)

Principal Paid on Capital Debt and Leases (8,488) (7,342)

Interest Paid on Capital Debt and Leases (8,134) (5,483)

Not Cash Used by Capital and Reaited FinancingActivities (112.620) (110,743)

CASH FL.OWS FROM INVESTING ACIVIIES Sale of Inestments 1,584849 1,476,554 Purchase of Investments 11,65W,1132) (1,492,980)

Investment Income .2041 24,8 NotCash Prvided (Used) by Investi Activities .......

Nern Decrese inCash and Cash Equivalents (213) (IM Cash and Cash Equivelens Beginnnlg of Year 519 1.59 Cash and Cash Equivalecnt End of Year $ 306 $ 519 RECONCIUA11ON OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss S (27.809) $ 87,040)

Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Actties:

Depreciation Expense 121,356 1168,87 Change in Assets and Liabilties Receivables, Nat 54,879 (27,715)

Due From Component Units (13,183) (1,843)

Inventories 110 185 Other Assets (68) 7 Accounts Payable 1,617 8,974 Salaries and Wages Payable (109) 3,497 Due to State and Component Units -(1,414)

Unearned Revenue (145) (362)

Deposits Held in Custody 136 1,175 Other Postemployment enefit Payable 37,317 35,398 Compensated Absences Payable 15,584 (80,087)

Liability for Self-Insured Claims (46,885) 4,424 NET CASH USED BY OPERATING ACTIVITIES $ (5%.997) $ (6271M)

SUPPlLEMENTAL DISCLSURE OfNONCASH OPERATING. INVESTI NG, AND CAPITAL RELATED FINANCING ACTIVTIES The following items are recognized on the Statement of Net Position or the Statement of Revenues, Expenses and Changes in Net Position, but are not cash transactions for the Statement of Cash FRows:

Selff-isurance program adjustment (Note 18) $ 27,104 Unrealized gains on investments $ 4,.04 Acquisition of equipment under installment purchase agreements $ 840 Less on dispoalof capital assets $ (3,898)

The wnipanýig notes ar an integral partof Mese financialstatements AComponent Ut of the Wtteof Fb*d I 27

lersity,

ýBoard

.ccol koard's i'ancial o and riteria

'omPo which Led by a rt

.rustet iembers. eý ould cz n1or ai 3oard of st bers are ai is a ual A

28 1 Uv offloxWa

Basi Uf A

P1 r of Florida Foundation, Inc., solicits, collects, Lnd directs contributions to the various academic n 1004.24, Florida ts and programs of the University, and assists the 1, 1994, asa self- in fund raising, public relations, and maintenance of Section 1004.24, CI accel to Fl and soils in adequat However, financi f certain c not included in sity's finan( .1 stat arn D.1I The s1 axe inch AComponediWtoftheStateof Florida 129

Notes ctice Plans, as to agrici I pr tern 7.The Faculty educý nical practice

~3I, in as faculty lhese organizations istruction function Un.iwv rd of the edi 3and invest iaged for the r the 1~

S

)spitaland Others Sh dng Hospital and was inc ocl is at the University.

2nt, as of July i,

. with the Florida iewal r the cor from

o. At Associates, Inc. term ment.

The ci eriod for ar In ad ie co: greem Practice Associa 11, Inc.* State ] ninat(

tt A

  • mer is 30 1 U1niversity of Forida

2012-2013 Annuol Fkanucidt Report is a Floridi organized to the co:

surroundir missions o Dgnized partinents, Inc.* (the Corporation; ý, gains, r the purpose of providing housir assets, aerer .ows abilities low- come families, especially those affi ng from none activ ,s ar ognized with of Florida. Capital was contribut all applicablb ig time versity of Florida Foundation, Inc ity follows i

G. B(

The L with prind Les g( fornc as s of I operating of blic service. 0]

us reportin! ill fiscal transa report as a This electi(

.Ba nents:

  • Othei ajor sources a fted net State oFloridd 1 31

Notes of tuition scholarships, discounts, and allowances. Tuition 25% of the cost basis of the building. Depreciation is computed scholarships, discounts, and allowances are the differences on the straight-line basis over the following estimated useful lives.

between the stated charge for goods and services provided by SBuildings - 5 to 50 years, depending on construction the University and the amount that is actually paid by a student or a third party making payment on behalf of the student The Infrastructure and Other Improvements-University applied "The Alternate Method" as prescribed in 1o to 5o years NACUBO Advisory Report 2000-05 to determine the reported Furniture and Equipment- 3 to 20 years net tuition scholarships, discounts, and allowances. Under this method, the University computes these amounts by allocating

  • Library Resources - io years the cash payments to students, excluding payments for
  • Property Under Capital Lease- 40 years services, on a ratio of total aid to the aid not considered to be third-party aid. Computer Software- 5 years The Statement of Cash Flows is presented using the direct method in compliance with GASB Statement No. 9, Reporting K. NoncurrentLiabilities Cash Flows of Proprietary and Nonexpendable 7rust Funds and Noncurrent liabilities include principal amounts of capital Governmental Entities That Use ProprietaryFundAccounting.

improvement debt payable, loans and notes payable, installment purchase agreements payable, capital leases payable, 1, Cash and Cash Equivalents compensated absences payable, other postemployment benefits payable, liability for self-insured claims, and other noncurrent The amount reported by the University as cash and cash liabilities that are not scheduled to be paid within the next equivalents consists of cash on hand and cash in demand fiscal year. Capital improvement debt payable is reported net accounts. University cash deposits are held in banks qualified of unamortized premiums or discounts and deferred losses as public depositories under Florida law. All such deposits are on refunding. The University amortizes debt premiums and insured by Federal depository insurance, up to specified limits, discounts over the life of the debt using the straight-line method.

or collateralized with securities held in Florida's multiple Deferred losses on refundings are amortized over the life of the financial institution collateral pool required by Chapter 280, old debt or new debt (whichever is shorter) using the straight-Florida Statutes. Cash and cash equivalents that are externally line method. Issuance costs paid from the debt proceeds are restricted to make debt service payments, maintain sinking or reported as Other Noncurrent Assets, and are amortized over the reserve funds, or to purchase or construct capital assets or other life of the debt using the straight-line method.

restricted assets, are classified as restricted. The University considers cash balances in overnight sweep accounts to be investments, as permitted by GASB Statement No. 9. L Other SignificantAccounting Policies Other significant accounting policies are set forth in the financial I. CapitalAssets statements and subsequent notes hereafter.

University capital assets consist of land, construction in progress, buildings, infrastructure and other improvements, furniture and equipment, library resources, property under capital lease, *ADJUSTMENTS TO BEGINNING NET works of art and historical treasures, computer software, and POSITION- COMPONENT UNITS other capital assets. These assets are capitalized and recorded at cost at the date of acquisition or at estimated fair value on the Table x summarizes the Adjustments to Beginning Net Position date received in the case of gifts and purchases of State surplus reported in the Statement of Revenues, Expenses, and Changes property. Additions, improvements, and other outlays that in Net Position to reflect prior year accounting changes and significantly extend the useful life of an asset are capitalized. correction of a prior year accounting error of the University's Other costs incurred for repairs and maintenance are expensed discretely presented component units.

as incurred. The University has a capitalization threshold of Table 2 summarizes the changes to Beginning Net Position for

$4 million for intangible assets, which includes computer those discretely presented component units that are no longer software, and $5,ooo for tangible personal property. The costs reported in the University's financial statements.

of all new buildings and projects adding new square footage are capitalized. Infrastructure and leasehold improvements have a

$25oooo capitalization threshold. For building renovations, the threshold is $250,0oo or less if the amount expended is at least 82 1 UniversityofF*dda

2012-2013 AnuaoFinanc~ialReport

.5.;.

  • S S S O
  • Sk savings accounts in qualified public depositories, as defined in Section 280.02, Florida Statutes; direct obligations of the Section !s; sec to invest nd m Administ that issionregiste over apter Trnf tIC admnniste: the Stateoffloida 133

Notes ida PRIME nts tandard &

(WAM) of he average in the case sitivity of rnges. The reported at 3anortiz ofAd& Accounts are u ments on Tabe.* ppet i Investment benefit of d in the 1hensive external im ity and various A. Pools ucation Insura U] Si), plus amc other retely ternal

-'s C in rsity's o pay 3aSi 34 1

3.rit N4Ai

.8.t 60 Copoen Unit Deb Ineten a

- I. ' .'A

.~~-

3F 0*

K ~

.5VKKK. KY

Ai..

the fiscal

,resented the most

'le. Some itionally, include as of June 30. 2013, are summanzed inTi ient unit t Accc gly, niversity romo ,ment of A: 8 '

Net , Lion r i by the comi due from and tc LUVCI ILy.

types:

itained m and supply process.

sed and Merchandise Inventories - Those inventories maintained which are available for resale to individuals and other University and notes departments, and are not expensed at the time of purchase.

d upon st estimate These inventories are reported on the Statement of Net Position on history, and are valued at cost using either the moving average method receivable or the first-in, first-out method.

3, is

ialbpofl on tl ti

Tal 13.' Caia Ipoe en et-aal

k. . ,

rnip. a te

,* **, 611 Note Paal

  • -rftle- .her ient n 39

Notes Table ~ ~S 17,aptlLessPaal follows Governmental tivemity Accounting Standards ASB) Statement NO. 45, Accounting andFinancialReporting

ývers for Pstemployment Benefits Other Than pnsions, for postemployment benefits administered by the State Jealth Insurance Programp.

lescription. Pursuant to the provisions of Section i, Florida Statutes, all employees who retire from the ity are eligible to participate in the State Group Health ceProgram, an agent multiple-employer, defined-benefit an). The University sub~sidizes the premium rates paid

-es by allowing them to participate in the Plan at reduced led group (implicitly subsidized) premium rates for both nd retired employees. These rates provide an implicit for retirees because, on an actuarial basis, their current ure claims are expected to result in higher costs to the i average, than those of active employees. Retirees are I to enroll in the Federal Medicare program for their coverage as soon as they are eligible. A stand-alone s not issued and the Plan information is not included in Drt of a public employee retirement system or another Lg Policy. Plan benefits are pursuant to provisions of 112.0801, Florida Statutes, andbenefits and contributions imended by the Florida Legislature. The University has ance-funded or established a funding methodology for ual Other Posternployment Benefit (OPEB) costs or the

,Bobligation, and the Plan is financed on a pay-as-you-

s. For the 2012-13 fiscal year, 2,451 retirees received ployment benefits. The University provided required utions of $io,o65,ooo toward the annual OPEB cost, 3ed of benefit payments made on behalf of retirees for expenses (net of reinsurance), administrative expenses, insurance premiums. Retiree contributions totaled

ý,ooo, which represents 1.4% of covered payroll.

I OPEB Cost and Net OPEl Obligation. The

ity's annual OPEB cost (expense) is calculated based on
  • ualrequired contribution (ARC), an amount actuarially nied in accordance with the parameters of GASB 45. The presents a level of funding that if paid on an ongoing 3, the estimn projected to cover normal cost each year and amortize unded actuarial liabilities over a period not to exceed 30 able ig shows the University's annual OPEB cost for the 40 1 Univs1tyofF/or

.3.:~d ROO:6 iic Uxuer

--benefit rs. The bniajues in

,,,* I k 3t 'P.refa

  • o,, 8 '

NetIObig 'on

$I uI.

Chz Stateoffiorbo 141I

Notes investment Flan totaled $3,5115,977 and employee totaled $1,997,341.

)f Florida establishes contribution rates for employers and employees. Effective July 1, 2011, ere required to contribute 3% of gross salary ment. Contribution rates during the 2012-13 fiscal nted inTable 21.

I .tes 4fiedfient S

on or aiter juiy 1, 20211, vest at eigxi years <o creuuaoie serwvce. Fl Sa

'e All vested members, enrolled prior to July , 202i r, are eligible for F normal retirement benefits at age 62 or at any age after 30 years M of service, except for members classified as special risk, who are D e m O eligible for normal retirement benefits at age 55 or at any age  ! tM ef after 25 years of service. All members enrolled in the Plan on or a o after uly 1i,2011, once vested, are eligible for normal retirement benefits atage 65 or any time after 33 years of creditable service, Notes except for members classified as special risk, who are eligible for Ec normal retirement benefits at age 6o or at any age after 30 years i of service. Members of both Plans may include up to 4 years of (B Rtroi credit for military service toward creditable service. The Plan remlyd also includes an early retirement provision; however,, there isa benefitreductionforeachyearamemberretiresbeforehirrhr The universits liablyor partic iS to the normal retirement date. The Plan provides retir n dsablity paym- ofthe required contribution at the rates and frequencies and death benefits, and annualcost-of-li a establishi d by law on future payrolls of the University There were 7,915 Universityparpants during the 2012-213 fiscal DROP, subject to provisions of Section 121,.091, FlordaStatutes, year. The Ueniversity's contributions for tie fiscal years ended permits employees eligible for normal retirement under June 30, 2oii, and June 30, 2012 totaled $38,8"3,505 and the Plan to defer receipt of monthly benefit paymens while $16,712,175, respectively which were equal to the required continuing employment with an FRS empl~oyer. An employee contributions for each <fiscal year. For the fiscal year end~ed June may participate in the DROP for a period not to exceed 60 30, 20213, the University's contributions totaled $217,809,204 and months after electing to participate. During the period of DROP employee contributions totaled $8,636,742.

participation, deferred monthly benefits are held i Financial statements and other supplementary information Trust Fund and accrue interest of the FRS are included in the Stats Comprehensive As provided in Section I121.45o0, Florida Statutes, eligible FRS Annual Financial Report, which is available from the Florida members may elect to participate in the Investment Plan in Department of Financial Services. An annual report on the FRS, lieu of the FRS defined-benefit plan. University employees which includes its financial statementsrequired supplementary already particpating in the State University System Optional information, actuarial report, and other relevant information, is Retirement Program or the DROP are not eligible to particiate available from the Florida Department of Management Services, in this program. Employer contributions are defined by law, Division of Retirement.

but the ultimatebenefit depends in part on the performance of investment fund4s. The Investment Plan is funded by employer RSaeUiest vtmOtoa and employee contributions that are based on salary and B. Universit Smst membership class (Regular Class, Senior M.anagement Service .... ..

Class, etc.). Contributions are directed to individual member Section1135,FlodaSatu ,provides fran ptionalRetirement accounts, and the individual members allocate contributions Program (Program) for eligibe university instructors and and account balances among various approved investment administrators. The ProgramisdesignetoaidState universities in choices. Empilovees in the Investment Plan vest at onie year .recruitintyemnylovees bv offerine more Tortabilitv to emT)ovees not 42 1 UnlverstyofFlorida

tc san s, which include a urity .No an become eligibb not to ed by the to the ity ployees do not coni Dthis program.

nr

tes 7, %"",7-e; all lossesin these categories are completely self State through the State Ris Management Trust ied pursuant to Chapter 284, Florida Statutes.

tort claims are limited to $200,000 per person, per occurrence as set by Section 768.28(5), Florida ilationof premiums considers thecash needsof the he amount of risk exposure for each participant.

en no significant reductions in insurance coverage r year coverage. Settlements have not exceeded

!rage during the past three fiscal years.

Section 1i1o.123, Florida Statutes, University y obtain healthcare services through participation oup health insuranceplan orthrough membership intenance organization plan under contract with

ýState'srsk financing activities associated with ealth insurance, such as risk of loss related to

-escription drug claims, are administered through

[oyees' Group Health Insurance Trust Fund. It is the State not topurchase commercial coverage for covered bv this Fund. Additional information on 44 1 Yniversqtofflorkld

B.L The are ed ba ry loss V for subject per-clai exceed al and cc

ýes in

Notes debt. In addition, tile acflvitylS reiatea revenues, expenses, gains, FUNCTIONAL DIS RITION OF losses, assets, and liabilities are required to be accounted for separately. Transportation and Parking Services provides the OPERIATINIG EXPENSES University with safe and adequate parking facilities. Several The functional classification of an operating expense parking garages have been constructed from the proceeds (instruction, research, etc.) is assigned to a department based of revenue-backed debt instruments. The Department of on the nature of the activity, which represents the material Housig and Residence Education provides safe and affordable portion of the activity attributable to the departmnt. For iving space for students of the of Florida. Capital

.niversity example, activities of academic departments for which the improvement debt hasbeen issued over the years to provide primary departmental function is instruction may include some funding for the construction of facilities to house students of Tal 24 FucinlEpne Student Activity Revenue Bonds, Series 2013. The bonds will be repaid from student activity and service fees and the proceeds will be used to renovate and expand the**. Wayne Reitz Union, the community center of the University. The bonds will mature in annual increments starting on July 1, 2O14, and ending on July 1, 2033. Interest payments are due semiannually on Januaryx and July i beginning January i, 2oQ4.

On November 20, 2013, the Florida Board of Governors, on behalf of the University, issued $24805o,00oef Utniversity of Florida Hiousingormitory Revenue Bonds, SerieS 201r 3A.The bonds will be repaid from dormitory fees charged to students. $i9,6oo,ooo of the proceeds will be used to constructa 255-bed dormitory with statef-the-art features comtplying with th~e Am~ericans with Disailities Act The remaining $5,0o5,ooo will refund portions of the Student Housing Auxiliary Debt Bonds, Series A. Blended Component Units 2005A, maturing in years 2o16 through 20o2y The-new bonds will mature in annual increments starting on July 1, 2014, and The University has two blended conpc endingon July x, 2033. Interest payments are due semiannually in Note z. Financial information for t component units is presented in Table 2 on January i and July i beginning July 1, 20 14.

B.DiscretelvPresentedComponent On November 21, 201 3, Shands Jacksonville Medical Center, Inc.

(a subsidiary of Shands Jacksonville Healthcare, Inc., a discretely The University's financial statements presented component unit of the University), borrowed presented component units as discuj

$123,645,000 with the issuance of Healthcare Facilities Revenue component units comprise ioo% ofthe t Bonds, Series 201 3A and 2013B, for $64,240,000 and $59,o5,ooo, balances of the aggregate discretely respectively. The proceeds will be used to refund the Series 2013 46 1 UtliersityofFhIrl

2012-2013 Anuram I

CONDENSED S' Assets (28,979) 3,041,261 28,932 12,776 231,359 44,551 383,661 Total U 86259 615,020 672,30o Opera 093 t4U

$ $ - $ Z36IL96 S

Equivalents

Tak4 6ret S3 up por 3..tsxrssd Oraiain Due from Component Units/Uniersity S $79,3 $

Other Current Assets 106,28 Capital Assets, Net 70,755 Other Noncurrent Assets 1,551,350

... .. _

Total Assets 1,807,779 Labilities Due to Com ponent UnisU n y .. 28,214 Other Current Liabilites 21,070 Noncurrent Uablities -6,204 Total Liab~ilities 75,8 Not Postin Net Inetmen inhCapital Assets 19,255 Restulcted-Nonexpenclble Endowment 1,163,209 Restcted Endowment 261,911 0rOr 297,106 unrestricted (9,190)

Total Net Posiin $ 1,7Z291 $

CONDENSED STATEMENT OF REVENUES, ANDC NESIN NETPOSmON Operating Revenues $ 79,945 $

Operating Expenses .11 39,959)

OperatngInoe (Loss) (60,014).

Nonoperating Revenues(Expenses)

Investment Income, Net of Expenses 114,855 Net Increase inthe Fair Value of Investmeants 762 Addition to Permanent Endowments 40,175 Other 11,93 Change in NetPosition 107,-7 107,57 Net Position, Beginning of Year 1,624,620 Adjustmentsto Beginning Net Position NetPositio, nnng o Year, as Restated(Note 2) 1,624,620 _____

Net PositionEnd ofYew $ 1,732=m $

48 1Vniverslty of fialoru

2012-2013 AnualFinnwcialReport

$ 11,843 $ 10,656 $ $ - $ - $ 101,885 61,558 1,571 8,329 830 1,804 331,8%5 175,054 19 - 10,707 - 256,535 51,788 431 - 10,441 1,614,010 300,243 12,677 6,329 11,537 12245 2,304,325 23 11,415 - 301 68,502 65,993 167 4,082 588 12,160 130,W48 92,031 112 S- - 124,847 158,047 11,M94 4,082 889 12,180 324,2%

86,259 19 3,737 10,707 119,977 430 - - 1,163,M 261,911 12,235 9 1309,341 43,702 534 (1,490) (59) 85 125,102

$ 14Z196 $ Z247$ IM$$ U85,98.

$ 65,769 $ 48,462 $ 9,221 $ 827 $ 129 $ 232,817 (104,341) (2,8G7) (11,599) (1,571) (44) 4295,574) 93 (38,572) 43,855 (2,378) (744) 85 (62,757) 6O7 1,259 10 119,192 5,329 10,735

- *40,184 48,117 145,107) 11,392 29,174 15,481 16 (368) 10,648 85 136,528 127,357 867 2,615 1,844,826 (642) - (T,324) 126,715 967 2,615 .1,43,502

$ 142,196 $ 93 $ 2MS$ 1USm.$ 8 $ 1*1m ACO tnofftheSlaWOf Iw MWO 49

Notes Tabl 27.: I ceceCne Afflae aoosepeqyhf' '

Assocation Physcins Asscates.W Association, Heltcre Scne Inc. Inc. Inc. Inc. Cmraer 6WrS"13 W11*013 V"30/013 6/30"13 6W=*/013 Affiliates Assets Due from Component Units/University $ 2,172 $ 6,019 $S $ - $ 2 $ 8,253 Other Current Assets 71,599 41,813 3,682 8,537 399 126,030 Capital Assets, Net 50,305 17,226 - 3,976 71,507 Other NoncurrentAssets 25,120 75 - . . 25,195 Total Assets 149,196 65,133 3,682 8,537 4  : 230,985 Uabilities Duet~oComponient Units/University 2,032 - 755 2,161 4,948 Other Current Liabilities 10M08 9,420 160 44 1,907 21,600 Noncurrent Liabililties 38,82_6_73 - - -___ 45,564 Total Liabilties 4.8,8 18189 180 799 4,M8 72,112 Net Position NetlInvestmntin Capital Assets 10023 9. .- 3,976 23,781 Unrestrictedt 90,277 37,182 _ 3,522 7,739 (3,607) 135,092 TrotalN rotoition $ 100,30 4o6,94.4 $ 3= $ 7,738 $ I6 15"nIS~

CNESDSTATEMENTOF RVN ES,PEfNSES. AND CHIANGES I NET POS1ION Operating Revenues $ 360,968 $ 192,309 $ 17,253 $ 1,452 $ 215 S 578,197 Operating Expenses (103,003) (94,401) (256) (367) (29,925) (227,952)

Operating Income (Loss) 257,965 97,908 16,997 7,085 (29,710) 350,245 Nonoperating Revenues (Expenses)

Investment ncome,Net of Expenses 371 23 2 3 399 Net Increase in the Fair Value of Investments 1,138 - - - 1,138 Other (2.57,469) (97,855) (16,825) (8,314) 29,710 (350,553)

Ch~ange inNet Position 2,005 276 174 (1,228) _ __ 1,229 Net Position, Beginning of Year 98,295 46,668 3,348' 8,964 369 157,644 Adjustmentsto Beginning NettPosition - * - ____. _ _, ......... .

Net Position, Beginmnng ofYear, as Restated (Nota 2) 989 46,6.8 3,348 9.864 369 157,644 N--------b-

202-2013 Aaua/ fincicolRelirt Shands its 3te Swap 108,270 Operating Re $

11,640 (6) 11,634 (2,50) -

(117.091) (25,312) (142,403) 9

2ý 987,531 AdjustiT gNet Net Position, Beginning of Year, Neot Psosion, End of Yew lordda 151

Notes Tal 29 Semn Ifraio Depewbueof Husing Trmspouldles and and Resdience Parking Service Educaton 0S3S13 W5IV13 CONDENSED STATEWMNT OF NET POSmON Assets Current Assets $ 8,884,949 $ 4,452,026 Capital Assets, Net 39,582,818 104,855,123 Other Noncurrent Assets 22,399,910 Total Assets _ 131,707,059 Liabilities Current Liabilities 2,896,352 10,087,257 Noncurrent Liabilities 22,45894 ____ 67,139.555 Total Liabilities 25255,300 77,226,812 Net Position Net Investment inCapital Assets 17,M4,680 54,961,078 Restricted 7,122,732 1,878,535 Unrestricted 6,129,211 (2,1%9.36W)

Totl Net Posien $ 3%910152 $ 54AS247 CONDENSED STAM MENT OF REVENUES, EXPENSES, AND CAGES INNET POSITO Operating Revenues (Expenses):

Operating Revenues $ 21,451,438 $ 48,678,910 Depreciation Expense (2,343,8M) (4,648,104)

Other Operating Expenses (16,739,884) (37,360,146)

Operating Income 2,367,696 6.670,660 Nonoperating Revenues (Expenses):

Investment Income 80,140 250,166 Interest on Capital Asset-Related Debt (1,118,%5) (3,125,180)

Other (1,036,530) (2,723,042)

Transfers (1,097,21) 959,e66 Net Nonopereting Revenues (Expenses) (3,172,016) (4,638,400)

Change in Not Position (804,320) 2,032,260 Net PositIon, Beginning of Year 31,360,943 52,447,987 S

Naot Poeien, End f Year $54AM4127 CONDENSED STATEENT OF CASH FLOWS Net Cash Provided (Used) by:

Operating Activities $ 6,472,594 $ 12,104,118 Noncapital Financing Activities (29,817) (11,M6,629)

Capital and Related Financing Activities (4,029,646) (14,053,016)

Investing Activities (2,412,991) 8,181,422 Net Increase (Decrease) in Cash and Cash Equivalents 3,140 (5,124,105)

Cash and Cash Equivalents, Beginning of Year 86 8,130,212 Cash and Cash Eq*ulent, End olfYew $ _3,26 $ 3,055,107 52 1 Unlver4tof Flouddo

2012-201f3 AoJnrnua inandReport U

U Actumarla IAA~ass

&up rner~ta Info t ~

Fiacal Aiddm isee fo th:Ya Ene. e 30 20

W DAVID W. MARTIN, CPA AUDITOR STATE OF GENERAL FLORIDA PHONE: 850-412-2722 AUDITOR GENERAL G74 Claude Pepper Building FAX: 850-488-6975 111 West Madison Street Tallahassee, Florida 32399-1450 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS Report on the Financial Statements We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the University of Florida, a component unit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the University's basic financial statements, and have issued our report thereon dated December 20, 2013, included under the heading INDEPENDENT AUDITOR'S REPORT. Our report includes a reference to other auditors who audited the financial statements of the blended and aggregate discretely presented component units, as described in our report on the University's financial statements. Th-is report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the University's internal control over financial reporting (internal control) to determine audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, we do not express an opinion on the effectiveness of the University's internal control.

A defideny in inlernal/ontro/exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A materialweakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the University's financial statements will not be prevented, or detected and corrected on a timely basis.

A sgnifcant defideny is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

54 1 UnversityofFlorida

2012-2013 Annual FinancialReport Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the University's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.

However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to University management in our operational audit report No. 2014-044.

Purpose of this Report The purpose of the INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the University's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditin~g Standards in considering the University's internal control and compliance. Accordingly, this report is not suitable for any other purpose.

Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 20, 2013 Audit Report No. 2014-070 AComponent Unitof the State of Florida I 55

Executive Officers Principal Finance and Dr. J.Bernard Machen Accounting Officials President Michael V. McKee Assistant Vice Presidentand University Controller Jane Adams Vice Presidentfor University Relations Brad S.Staats Assistant Vice Presidentfor Contracts and GrantsAccounting Services Elias G. Eldayrie Vice Presidentand ChiefInformation Officer Bradley W. Bennett SeniorAssociate Controllerfor University DisbursementServices, Matthew M. Fajack Asset Management and Cost Analysis Vice Presidentand Chief FinancialOfficer Stuart E. Hoskins Paula Varnes Fussell SeniorAssociate Controllerfor University Bursarand Treasury Vice Presidentfor Human Resource Services Management Dr. Joseph Glover Kim C. Simpson Provost and Senior Vice PresidentforAcademic Affairs SeniorAssociate Controllerfor OperationalControlsand Efficiencies Dr. David S. Guzick Kathleen M. Tillett Senior Vice PresidentforHealth Affairs SeniorAssociate Controllerfor GeneralAccounting, FinancialReporting,Payrolland Tax Services Jamie Lewis Keith Vice President and GeneralCounsel David E. Kratzer Vice Presidentfor Student Affairs Thomas J.Mitchell Vice PresidentforDevelopment and Alumni Affairs Dr. David P. Norton Vice PresidentforResearch Dr. Jack M. Payne Senior Vice Presidentfor Agricultureand NaturalResources Dr. Winfred M. Phillips Senior Vice Presidentand ChiefOperatingOfficer Curtis A.Reynolds Vice PresidentforBusiness Affairs 56 1 Universityof Florida

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