ML14255A368

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)

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June 9, 2014, the NRC requested updated financial information since some of the previously provided information may be outdated (ML1321A048).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 Since UF'sfinancialstatements included with the applicationare out of date, provide a copy of the latest financialstatementsfor the NRC staff's review.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 "Since the information included in the applicationis now out of date, provide the following additionalinformation: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