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 9fCollege of Engineering PO Box 116134UF Training Reactor Facility Gainesville, FL 32611352-392-2104bshea@ufl.eduSeptember 4, 2014U.S. Nuclear Regulatory Commission 10 CFR 50.4, Written CommunicationsATTN: Document Control Desk UFTR Operating License R-56, Docket 50-83Washington, 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). InFebruary 2010 and May 2010, the UFTR provided supplemental information intended toupdate 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June 9, 2014, the NRC requested updated financial information since some ofthe previously provided information may be outdated (ML1321A048). Attached are theUFTR responses to this most recent request including the revised SAR Chapter 15.This submittal has been reviewed and approved by UFTR management and by the ExecutiveCommittee of the Reactor Safety Review Subcommittee.I declare under penalty of perjury that the foregoing and attached are true and correct to myknowledge.Executed on September 4, 2014.Brian SheaReactor Managercc: Dean -College of EngineeringReactor Safety Review SubcommitteeFacility DirectorReactor ManagerLicensing EngineerNRC Project ManagerAo/oThe Foundation for The Gator NationAn Equal Opportunity Institution

1. The NRC staff will analyze the financial statements for the current year, which arerequired by 10 CFR 50. 71(b), to determine if the UF is financially qualified to operatethe UFTR. Since UF's financial statements included with the application are out of date,provide a copy of the latest financial statements for the NRC staff's review.Enclosed you will find a copy of the latest UF annual financial statement.2. Pursuant to 10 CFR 50. 33(f)9(2), "[t]he applicant shall submit estimates for total annualoperating costs for each of the firstfive years of operations of the facility. "Since theinformation included in the application is now out of date, provide the followingadditional information:(a) Projected operating costs of the UFTR for each of the fiscal years (FYs) 2015-2019 (the firstfive year period after the projected license renewal).Total annual operating cost estimates for the UFTR are shown below. These costsestimates are for the respective fiscal years which run from July 1 to June 30 (i.e. FY15runs from July 1, 2014 to June 30, 2015).Year Salary Other Personnel Services Operating Expenses TotalFY 15 $325,933 $45,716 $122,525 $494,174FY 16 $335,711 $45,716 $122,525 $503,952FY 17 $345,782 $45,716 $122,525 $514,023FY 18 $356,156 $45,716 $122,525 $524,397FY 19 $366,841 $45,716 $122,525 $535,082FY 20 $377,847 $45,716 $122,525 $546,088FY 21 $389,182 $45,716 $122,525 $557,423(b) UF's source(s) offunding to cover the operating costs for the above fiscal years.The source of funding is unchanged.3. The application references a decommissioning cost estimate for the UFTR that states thatthe decommissioning cost estimate was $3.28 million in 2009 dollars, and includes a 25percent contingency factor. The NRC staff needs the following additional information tocomplete its review of the UFTR decommissioning cost estimate:(a) A current decommissioning cost estimate in 2015 dollars for the UFTR to meetthe NRC's radiological release criteria for decommissioning the facility forunrestricted use, pursuant to 10 CFR 50. 75(d)(2). Accordingly, describe the basisfor how the cost estimate was developed (i.e., state the references for thedecommissioning cost estimate).Based on the most recent Waste Burial Adjustment Factor (NUREG-1307) and July 2014Page I of 3 Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03million. The basis for the cost estimate development is unchanged.(b) A summary of total decommissioning costs by labor, waste disposal, other items(such as energy, equipment, and supplies) in current dollars, and a 25 percentcontingency factor.The summary of total decommissioning costs is unchanged.(c) Provide a numerical example showing how the 2015 cost estimate will be updatedperiodically in the future.The numerical example is unchanged.4. The application indicates that UFplans to use a statement of intent (SOI) as the methodto provide decommissioning funding assurance, as provided for by 10 CFR50. 75(e)(1)(iv). Where the applicant intends to use a SOI, the NRC stqff must find that theapplicant "is a Federal, State, or local government licensee. " To make this finding, theapplicant must state that it is a State government organization and that thedecommissioning funding obligations of the applicant are backed by the Stategovernment, and also provide corroborating documentation. Further, the applicant mustprovide documentation verifying that the signatory of the SOI is authorized to executesaid document that binds the university. This document may be a governing bodyresolution, management directive, or other form that provides an equivalent level ofassurance. As the application does not include all of the above information, submit thefollowing:(a) An updated SOI which includes the current (2015 dollars) cost estimate fordecommissioning, a statement that funds for decommissioning will be obtainedwhen necessary, and the signatory's oath or affirmation attesting to theinformation.Based on the most recent Waste Burial Adjustment Factor (NUREG- 1307) and July 2014Consumer Price Index (CPI) data, the current decommissioning cost estimate is $4.03million. The decommissioning funding assurances provided in the prior SOI areunchanged.(b) Documentation that corroborates the statement in the application that UF is aState agency and a State of Florida government licensee under 10 CFR50. 75(e)(2)(iv).The enclosed UF annual financial statement corroborates the statement in the applicationthat UF is a component unit of the State of Florida.Page 2 of 3 (c) A statement as to whether the decommissioning finding obligations for the UFTRare backed by the State of Florida government. The application must also presentdocumentation that corroborates this statement. For example, the documentationmay be a copy of or complete citation to a state statute that expressly providesthat the obligations, or at least the decommissioning funding obligations, of theapplicant are backed or supported by the full faith and credit of the State ofFlorida, or an opinion of the applicant 's General Counsel with citations tostatutes, regulations, and/or case law that the obligations, or at least those withrespect to the decommissioning funding of the applicant are obligations backed orsupported by the full faith and credit of the State of Florida.The Florida Constitution and Florida Statutes make clear there is an obligation for theState of Florida to provide financial support to the University in its obligations.Page 3 of 3 CHAPTER 15FINANCIAL QUALIFICATIONS Rev. 0 8/26/2014Chapter 15 -Valid Pagesi Rev. 0 8/26/2014ii Rev. 0 8/26/201415-1 Rev. 0 8/26/2014i Rev. 0 8/26/2014TABLE OF CONTENTS15 FINANCIAL QUALIFICATIONS15-115.1 Financial Ability to Operate the UFTR 15-115.2 Financial Ability to Decommission the UFTR 15-1ii Rev. 0 8/26/201415 FINANCIAL QUALIFICATIONS15.1 Financial Ability to Operate the UFTRTotal annual operating cost estimates for the UFTR are shown below. These costs estimates are for therespective 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 TotalFY 15 $325,933 $45,716 $122,525 $494,174FY 16 $335,711 $45,716 $122,525 $503,952FY 17 $345,782 $45,716 $122,525 $514,023FY 18 $356,156 $45,716 $122,525 $524,397FY 19 $366,841 $45,716 $122,525 $535,082FY 20 $377,847 $45,716 $122,525 $546,088FY 21 $389,182 $45,716 $122,525 $557,423Funding for the UFTR is appropriated by the State of Florida. This funding includes money for salariesand expenses but no large pieces of equipment. Items in this category are handled with occasional directallocations either from the College of Engineering, the University, or from external Grants and Awards.In addition, these cost estimates do not include infrastructure services provided by the university such asbuilding heating, air conditioning, electricity, and water.The UFTR occasionally performs some commercial services, however, the commercial work comprisesless than 1% of the ownership and operating costs associated with the facility. Therefore, the UFTRshould continue to be licensed as a Class 104(c) facility.15.2 Financial Ability to Decommission the UFTR FacilityThe 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), anddecommissioning experience of other research reactors (Marske & Hertel, 2001). The cost estimate takesno credit for salvage value of any reactor components. The decommissioning cost estimates are updatedannually. The updates include adjustments based on the Consumer Price Index (CPI) and Low-LevelWaste Disposal factors (NUREG- 1307).The University of Florida is a state institution and thus, according to the provisions of 10 CFR50.75(e)(1)(iv), the funds needed for decommissioning will be obtained when necessary. The UFTR willlikely choose the DECON decommissioning method.15-1

I' 2012-2013 Annual Financial ReportWhat is the value oftechnology unless it movesus forward in some practicaland beneficial way? Just howim o iat is Sl.c re unless itchanges hvis or the better?At the University of Florida, a steadfast andoverarching commitment drives us not only to focuson life-changing science, but also to apply thatknowledge and change people's lives. Few, if any,other public research universities can match UF'ssuccess at transferring technological and scientificachievements to the real world.It begins in hundreds of UF facilities pursuingthousands of often-groundbreaking studies. Ithappens in classrooms, where students learn tothink in fresh and innovative ways. It progresses indozens of labs, accelerated by the unimaginablecomputing speed of HiPerGator. It is perfected andcommercialized by entrepreneurs, corporationsand investors, many of whom benefit from UF'sown highly successful business incubators and whogo on to build successful businesses that createthousands of jobs.In the end, our lives are affected in numerousways -some simple, like better tasting tomatoes;some historic, like saving the Statue of Liberty;some essential, like safer hospital operatingenvironments; and some inspirational, like givinginjured soldiers back the use of damaged limbs.Lives changed, in thousands of ways, inhundreds of places all around the world.are good we'vechanged your life as well.Table of ContentsPresident's Message ............................................ 2University of Florida OverviewLives Changed Every Day ............................... 4Living More Safely ....................................... 6Lives Reclaimed ........................................... 8Living Innovation ......................................... 10Knowledge by the Numbers .......................... 12Introduction from the Vice President and ChiefFinancial Officer .......................................... 14Independent Auditor's Reporton Financial Statements ............................... 16Management's Discussion and Analysis ................... 18Basic Financial StatementsStatement of Net Position ............................. 25Statement of Revenues, Expenses,and Changes in Net Position ....................... 26Statement of Cash Flows ............................... 27Notes to the Financial Statements .................... 28Other Required Supplementory InformationSchedule of Funding Progress -Other Postemployment Benefits Plan ............. 53Supplemental InformationFinanciolAidAdministered ............................ 53Independent Auditor's Report on InternalControl Over Financial Reporting and onCompliance and Other Matters .................... 54

2012-2013 Annual Financial ReportPublic discussion of the State's 2013 r emNkenr e is~ a eOuhas focused on how the law will s pport the University of Voridin rising among the ranks of the Nation's best pu lic Ji¢versities.While that is certainly a goal, there is a deeper andmore general benefit.By enabling UF to hire dozens of leading scientistsand scholars, the law will underpin research thatextends the boundaries of human knowledge andimproves people's lives. This outcome will augmentUF's legacy of contributing to the economic prosperityof our State and Nation -a legacy that dates to ourfounding charter as a land-grant university.Big Data and Other FrontiersAs this year's financial report makes clear, UFresearch has spurred important steps forward inagriculture, medicine, technology and most otheressential aspects of modern life.The preeminence law gives us an opportunity tofocus on new advancements in areas of greatfuture promise.We took the first big step toward this goal in October,when we selected 16 proposals put forward by UFfaculty to receive the bulk of the first round of $15million in State preeminence funding.The proposals, which seek to advance new frontiersin health, computing, agriculture and the lifesciences, are as diverse and comprehensive as ourUniversity. But they share a common feature ofoccupying the technological or scientific vanguard.We see this feature, for example, in a proposal toexplore new uses for the trillions of gigabytes ofinformation now being generated by computers andsensors worldwide -a rapidly emerging field knownas Big Data.Put forward by multidisciplinary teams of UFscientists, engineers, artists and educators, thisresearch explores ways to tap Big Data to predictdisease outbreaks, forecast the effects of climatechange, improve online education and much more.We are so enthusiastic about the potential, weselected the Big Data proposal to receive the highestproportion of the preeminence dollars -$3.8 million.The research envisioned in the other proposals isalso far-reaching.We will support new faculty whose work seeksto discover and develop new drugs, improvemathematical modeling of epidemics and enhancehuman understanding of neuroscience and the brain.We will also fund efforts to improve early childhoodeducation, make manufacturing more efficient andstrengthen cybersecurity.A Widening ImpactUF has committed to matching the Statepreeminence funding with private dollars raisedthrough the UF Foundation. Indeed, we will fund asecond round of preeminence research proposals inlate 2013.In conjunction with these efforts, the UF Foundationhas pledged to raise $800 million to create morethan 100 new endowed professorships and chairsfor accomplished faculty members over the nextthree years.It will take time to identify and hire the scientistsand scholars who will help us reach our ambitions,and the results will hardly be immediate. But UF hasa vibrant, growing and highly regarded technologycommercialization enterprise that is well positionedto capitalize on these new faculty members'discoveries and innovations.As UF scientists and entrepreneurs drew on nerveregeneration research to pioneer new techniquesto restore damaged nerves, and as they are tappinghurricane research to build stronger houses, so theywill also make the most of the research spurred bythe preeminence funding.As a result, we can be confident that the preeminenceinitiative will not only prove a benefit to UF but also toFlorida's economy -and to people everywhere.J. Bernard MachenPresident, University of FloridaA Component Unit of the State of Florida I 3

6,000im-metfl oneI suItdeets stody"!qat U1 oho wil6/ use their ;,ewto im, rove lives 61!over the world.Throughout the years, theUniversity of Florida hasworked to improve theeveryday lives of people.lncluding you. Improvingwhat you taste, how you see,and even your pet's healthare all in a day's work at theUniversity of Florida.A Tastier Salad. UF's tomato breeding programdates back to 1922. So when consumers craveda redder, tastier, juicier tomato, who better toaccept the challenge than our own horticulturists?After years of research, they created a naturallydeveloped, vine-ripened hybrid and named itTasti-Lee@. Salad and sandwich lovers have beengrateful ever since.Solutions for Your Life. Helping small farmersgrow grapes in northwest Florida. Organizing 4-Hcamps that offer kids a place to experience andappreciate nature. Educating residents about theimportance of agriculture. Those are just a few ofthe ways that UF/IFAS Extension touches the livesof Floridians in all 67 counties. UF/IFAS Extension isdedicated to developing knowledge in agriculture,human and natural resources, and the life sciences,and to making that knowledge accessible in orderto sustain and enhance the quality of human life.Clearer Vision. The odds are that you orsomeone close to you suffers from glaucoma. Itaffects millions of individuals in the U.S. alone.Fortunately, UF scientists had a vision and createdthe breakthrough drug Trusopt. A life-changingdiscovery, Trusopt relieves the symptoms ofglaucoma and is relatively free of the side effectsassociated with other drugs used to treat thedisease. One small eye drop and thousands of liveschanged.Slower Growing, Less Mowing,.UF horticulturist Dr. Russell Nagata is an unsunghero to countless Americans faced with thenever-ending task of mowing the lawn. He createdCaptiva, a much slower-growing type of St.Augustinegrass. Captiva grows between one-and-a-half and two-and-a-half inches a week, comparedwith the three-to-five inches rate of typical grass.Less mowing also means less fuel to buy. But that'snot all. Captiva offers one additional benefit: It isconsiderably more resistant than other varieties tolawn-killing chinch bugs.More Purrs. Cats do not have nine lives. So, toenhance the quality of their one precious life,UF researcher Dr. Janet Yamamoto developeda feline AIDS vaccine. Her most recent researchwith the vaccine has revealed that the FIV proteinalso stimulated human T cells to produce anti-HIVactivity. The connection between feline AIDS and HIVmay eventually lead to a vaccine for humans andan even better vaccine for cats. So, the furry felines-and the people they own -can look forward tolonger lives together.The University of FloridaShellfish Aquaculture ExtensionProgram provides educational,technical and organizationalsupport to the clam formingindustry in Florida. In 1995, aposition was created withinthe UF/IFAS Extension to assistthe emergent industry onFlorida's west coast.In a State that produces onebillion square feet of turfgrasseach year, there is literally a lotof ground to cover. A dedicatedteam of researchers at UFanalyzes Florido's gross, as wellas the soil beneath it and peststhat pose a constant threat.07Each of Florida's 67 counties has a UF/IFAS Extension office, which provides residents with scientific knowledgeto sustain and improve the quality of human life in areas ranging from agriculture, home gardening, and healthand nutrition, to home finances, disaster preparedness, and family relationships. UF/IFAS research centers anddemonstration sites around the State provide Florida and the entire Notion with research borne knowledgeused to help farmers, ranchers, growers, and others feed the world.A Component Unit of the State of Florida I 5

5hwo' 1995. thaueks to the Soicn~omitocolny tir~who sstM.Science and technologygenerated in the laboratoriesat UF help produce oneextremely valuablecommodity: peace of mind.Our homes are safer. Our livesare healthier. And our hopesare higher. Not just becausesomeone had a good idea, butbecause they also had thepassion to make it work.Sturdier Homes. Why would wind engineersat the University of Florida develop the world'slargest portable hurricane simulator? Aren'tthere enough real hurricanes already? That'sexactly why. By creating and controlling their ownhurricanes, UF engineers are able to experimentwith building materials to determine which are themost storm-resistant. The hurricane simulator cancreate the effects of a Category-3 (Katrina-sized)storm, complete with wind and rain. So, while we'llprobably never be able to prevent hurricanes, wecan find better ways to prepare for them.Longer Lasting Liberty. The proudlady has stood, torch in hand, in New YorkHarbor since 1886. She, in fact, may be the mosticonic of all American statues and monuments.But in 1994, the Statue of Liberty had a problem:termites. Her condition worsened until 1996, whenSentricon came to the rescue. Developed byUniversity of Florida entomologists and DowElanco(now Dow AgroSciences), Sentricon is anenvironmentally friendly termite control technology.For nearly 20 years, Sentricon has been on thejob not only on Ellis Island, but also in homes acrossthe Nation, including a big white one at 1600Pennsylvania Avenue.A Better View. It takes special skills to flyover crops and instantly send back video andstills for farmers to analyze and potentially detectdisease, irrigation or fertilizer issues, predict cropyields and more. And who would be willing to ridealong with a hurricane, collecting data to helpscientists predict the intensity and trajectory of thestorm? Drones are capable of both assignments andare on the job at the University of Florida. Equippedwith sensors and cameras, these unmanned aerialvehicles are helping UF soar to new heights inresearch.Healthier Hospitals. Even a Gator can learnfrom a shark. Dr. Anthony Brennan studied theantimicrobial properties of sharkskin in hopes offinding ways to reduce the buildup of barnacleson submarines. He and his team at the UF Collegeof Engineering then replicated the microscopicdiamond shapes to create the world's firsttechnology to inhibit bacterial growth throughpattern alone.Extensive research by OFengineers has enabledhomebuilders to create safer,sturdier structures that protectfamilies during severe weatherand better withstand the testof time.UF doesn't just studyhurricanes, we create them.Our hurricane simulator cancreate the wind and rainproduced by a Category-3storm to study its effects andhelp builders and residentsalike more effectively preparefor the real thing.300+That's the number of crops grown and harvested in Florida, more than any other state inthe Nation. It's also why food safety education is a critical area for UF's Institute of FoodandAgricultural Sciences. The UF/IFAS ServSafeO program helps protect Florida residentsand visitors from foodborne illness by training foodservice personnel in proper sanitationand food handling practices. From 2007 to 2012 the program certified more than 2,700participants, many of whom were able to secure better-paying jobs as a result.A Component Unit of the State of Florida I 7

( M, k.l pf~oients SeenJ irlfh, LIEIipalteI Sharos P0,d/i~rnctEl..EYK!Z1O. 12 OTWhile not all inventions affectpeople immediately, directlyand personally, there is thatselect group of innovativeachievements that have aprofound and lasting impacton the individuals they touch.In some cases, they changelives. In others, they save lives.Better Futures. AxoGen, Inc., provides criticallywounded soldiers with what they most deserve anddesire: a second chance. The University of Florida'sMcKnight Brain Institute developed technologies fornerve grafting and regeneration. Marketed underthe name Avance, the technique allows surgeonsto reconstruct damaged peripheral nerves so thatthe central nervous system can communicate withmuscles or organs throughout the body. WhenNavy corpsman Ed Bonfiglio was shot in the left legwhile on patrol in Afghanistan, doctors successfullyemployed this procedure. As a result, Ed still hasboth of his legs. And a much brighter future.A New View of the Brain. A simple blood testto detect traumatic brain injuries? If that soundsrevolutionary, it is. Researchers at UF's McKnightBrain Institute discovered proteins from thebreakdown of dying brain cells in blood. In doingso, they paved the way for Banyan Biomarkers,the leader in blood test-based diagnostic productsfor the detection of traumatic brain injuries.Someday soon, physicians will know almostimmediately the extent of a brain injury and will beable to treat -and even save the lives of -soldiers,accident victims, and athletes.Faster Drying Tears. A children's emergency roomis probably the last place a parent wants to go.But should the need arise, families in Gainesvilleare fortunate to have the Pediatric ER at UF HealthShands Hospital nearby. All UF Health pediatricteams are now located in a single building, witha child-focused environment. This enables us tobetter serve our young patients and their families.The entrance welcomes them into fun and colorfulsurroundings. Once inside, the children and youngadults will experience quality, streamlined pediatriccare so they can get back to their lives.Greater fope. Quite often, people lack the abilityto change their own lives as much as they'd liketo. Drug and alcohol addiction are formidableopponents. UF Health Florida Recovery Centeris keenly aware of that and offers help to thosefighting substance abuse. The doctors, therapists,counselors and representatives have an intimateunderstanding of recovery and help is available anytime of day, every day of the year. Affiliated with theUF Department of Psychiatry, the Center has a mainoffice near campus and four satellite offices servingthe rest of Florida.Navy corpsman Ed BonfiglioThe UF Health ShandsPediatric ER$740mThat's the amount UF spent in 2011 on research and development, ranking it 12th among theNation's top public research universities. Among the discoveries that have risen from the innovativeand creative minds of UF researchers: a test that uses peanut butter to confirm an Alzheimer'sdisease diagnosis; softball-sized satellites that con be built cheaply and launched quickly; theTasti-Lee@ tomato that can survive shipping and still taste great; the Sentricon Termite ColonyElimination System; the glaucoma drug Trusopt; and, of course, Gatorade.A Component Unit of the State of Florida I 9 II wkholoies accovpted to?90 Percent of the total for theentine Stoic doiversity system.,UF has become a fertileground for innovation.Not only is the University aspringboard for new ideas,products and businesses,it's also changing the waypeople responsible for thatinnovation are learning andcollaborating. Meanwhile, justa short walk east of campuswill reveal how UF is changingthe landscape of highereducation. And Gainesville.Community Redefined. This is InnovationSquare at the University of Florida. People workhere, and soon people will live and play here, too.A 40-acre research community, Innovation Squarehas created an environment where synergy isinevitable. Where the line between social andbusiness interactions has been virtually erased.Where diverse individuals and ideas cometogether to create even greater ideas. And whereproducts move from the mind to the marketplace.Innovation Square also provides the residents ofits "community" an opportunity to collaborate withUF's 4,000 talented researchers, whose annualresearch awards total $641 million.Faster Startups. If you've ever heard thequestion, "Where do you come up with your ideas?"some could answer, "At The Florida InnovationHub at UF." Located in the heart of InnovationSquare, this 48,000 square-foot facility servesas an incubator for startup companies based ontechnologies emerging from UF laboratories.By enabling businesses to devote their limitedresources to technology and market developmentrather than operational costs, Innovation Hub hasattracted more than two dozen startup tenants andled to the creation of 250 jobs in its first 20 monthsof existence.A Minor Revolution. The spring semester of 2013welcomed not only new students to the Universityof Florida but also an entirely new concept inhigher education: the Innovation Academy. One ofthe Nation's most forward-looking undergraduateprograms, the IA offers a select group of studentsthe opportunity to choose from several majorsoffered by various colleges while concentrating onone minor: innovation. With courses concentratingon creativity, entrepreneurship, ethics, andleadership, the program is designed to preparestudents for living and working in today's globaleconomy. Even its schedule is unique. Students areenrolled during the spring-summer academic year,leaving them free to pursue off-campus interests,including internships, during the fall semester.The 4,000 square-footInnovation News Center atthe UF College of Journalismand Communications housesstate-of-the-art broadcastingequipment, television andradio editing rooms, audiobooths, a mini-studio, andnearly 100 seats for reporters,producers and editors. It isalso home to the College'smany distribution channels,which includes six radio andTV/stations serving NorthCentral Florida.As Gatorade approaches its50th birthday, the industiy-launching sports drinkdeserves recognition for thelicensing income it continuesto produce for the Universityof Florida. And that wasJusta start. Products that haveevolved from UF labs to themarketplace continue togenerate substantial revenue,which in turn is invested tofund further research.A Component Unit of the State of Florida I 11150trillionThat's the number of calculations UF's new supercomputer can perform in one second.HiPerGator is the fastest computer in the State and one of the fastest in the countly.Its amazing speed and power can help researchers find life-saving drugs, forecast weatherdecades in advance, and even design more effective armor for troops.

Knowledge by the Numbers~,aa S 3 I'S .3 IColIe/SchoolAccountingAgricultural and Life SciencesBuilding ConstructionBusiness AdministrationDentistryDesign, Construction, and PlanningDivision of Continuing Education (A)EducationEngineeringFine ArtsForest Resources and ConservationHealth and Human PerformanceHigh SchoolInterdisciplinary EcologyJournalism and CommunicationsLawLiberal Arts and SciencesMedicineMultiple-College ProgramNatural Resources and EnvironmentNursingPharmacyPharmacy DoctorPhysician Assistant ProgramPublic Health & Health ProfessionsVeterinary MedicineSUB-TOTAL2012 2011 2010 2009 2O59857 865 905 871 8974,835 4,955 4,940 4,640 4,557383 391 499 581 6164,985 4,681 4,728 4,947 5,539385 389 378 379 389855 896 899 899 921141 179 215 259 2751,732 1,749 1,886 1,919 1,9408,716 8,454 8,240 7,880 7,6961,294 1,256 1,309 1,284 1,254---222 2151,973 2,047 2,008 1,908 1,97057 52 47 44 -33104 116 127 135 1312,693 2,540 2,516 2,663 2,9571,105 1,118 1,191 1,263 1,34012,514 12,673 12,817 13,368 14,315823 862 853 967 8671 1 2 -120 155 154 158 1421,162 1,170 1,090 1,188 1,160847 823 836 761 , 6891,584 1,686 1,752 1,891 1,841119 119 119 119 1192,213 2,122 2,139 1,971 1,803648 542 530 525 50750,145 49,841 50,179 50,844 5ZI73Minus Concurrent Degree 59 56 63 60 61TOTAL 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 FactsDegree 2012-13 2011-12 2010-11 2009-10 2008-09Bachelor'sMaster'sDoctor of PhilosophyDoctor of PharmacyJuris DoctorDoctor of MedicineDoctor of Dental MedicineDoctor of Veterinary MedicineSpecialist in EducationEngineerTOTAL8,245 8,600 8,685 9,302 9,2073,929 3,924 3,878 3,751 3,546880 859 936 957 841427 461 484 483 474361 334 410 377 424131 134 127 130 12479 82 83 91 8186 84 87 89 8488 71 70 111 7314,226 14,549 14,760 115,29 1 4J8-... M -Source: UF Office of Institutional Planning and Research 2012-2013 Annual Financial ReportIn-State Enrollmentby County -Fall 2012Total In-State Enrollment:40,674Source: Fall Final Student Data Course FilePrepared by the UF Office of InstitutionalPlanning & ResearchResearch Awards by Sponsor for2012-13 fiscal year* Federal Agencies$416,588,245SFlorida State Agencies34,758,814i Corporations & Companies$70,858,140Foundations & Societies$85,765,778L ocal & Regional$6,828,182SAll Other Sources$25,853,803TOTAL$640,652,9621%Changing Lives at Home.As the University of Florida delivers on itsmission of research, teaching, and service, we willcontinue to attract the best and brightest students,as well as recruit and maintain preeminent faculty.UF provides students with a learning experiencefew other universities can offer, while we rewardour faculty with the technology and funding neededto perform their remarkable work.And while we continue to affect the lives of peoplethroughout the world, the University of Floridawill forever keep a strong focus on the residents,leaders, and businesses in our State to ensure theirconstant well-being and quality of life.A Component Unit of the State of Florida I 13 Introduction from theVice President andChief Financial OfficerI am pleased to present the University of FloridaAnnual Financial Report for the fiscal year endedJune 30, 2013. This report provides usefulinformation concerning the University's financialposition and activities for the year. The ManagementDiscussion and Analysis, the financial statements,and the notes to the financial statements documentthe University's financial success and health for thisfiscal year.During fiscal year 2012-13, Noncapital StateAppropriations declined by 8.0%, or $42.4 million.In an effort to mitigate that loss, we continued toincrease operational efficiencies, utilized soundbudgeting, and had limited tuition increases.Tuition revenue increased $38.5 million, or 8.3%for the fiscal year. The tuition increases helpedoffset the reduction in State Appropriations, but didnot cover the nearly $4.0 million remaining in lostState support. Even with the tuition increases, theUniversity continues to have among the lowest costof attendance of all public research universitiesnationwide and continues to be a great value for theinvestment.The University continues to maintain its beautifuland historic campus in spite of the State's significantreductions in the amount of capital projects funding,including Public Education Capital Outlay (PECO).

2012-2013 Annual Financial ReportCapital State Appropriations totaled $9.5 million, aslight increase of $3.4 million over the prior fiscalyear of $6.1 million.During the year, several major constructionprojects were completed to provide facilitiesnecessary for fulfilling the instructional, research,and service missions of the University. Thesebuildings illustrate the University's diverse nature.Completed construction projects include the ClinicalTranslational Research Building (CTRB). The CTRB isa new home for research that will speed scientificdiscoveries to patients. The 120,000 square-footcomplex will spark collaboration and spur medicaladvances by bringing together research teams froma range of scientific disciplines.The completed East Campus Data Center is home toHiPerGator, the University's new high performancesupercomputer, which has a peak speed of 150trillion calculations per second. The HiPerGator is themost powerful supercomputer in the State of Floridaand will help researchers find life-saving drugs,make decades-long weather forecasts, and improvearmor for our troops.The Lake Nona Research Facility opened November30, 2012. This facility brings vital research on newtherapies and cures, increased opportunities forparticipation in clinical research, and enhancedaccess to professional and graduate pharmacyeducation to the Orlando area.The Reitz Union Expansion and Renovation projectstarted in June 2013. Built in 1967, the J. Wayne ReitzUnion is the heart of campus, a center of studentactivities and involvement. The project includes theconstruction of a new 100,000 square-foot multilevelstructure, and renovation of up to 50,000 squarefeet of the existing building. The $75 million projectis funded through a combination of activity andservice fees, an investment from the University,a $41.5 million bond to be issued during the 2013-14fiscal year, and other sources. Expected to becompleted Fall 2015, the much needed space willaccommodate student activities and the University'sgrowing student body.Historic State legislation was passed this year,creating a path for the University to be designateda State University of Academic and ResearchExcellence and National Preeminence. HouseBill 7129 provides tuition and academic flexibilityto research universities that meet standardsestablished in the bill for a State university ofnational preeminence. The standards includeselectivity of admissions, student retention, graduationrates, size of endowment, amount of annual giving,faculty membership in a national academy, numberof patents awarded, number of doctoral degreesawarded, number of postdoctoral appointees, researchexpenditures, and national rankings.The Office of the Vice President and Chief FinancialOfficer is committed to manage effectively theUniversity's assets and facilitate the business needsas the University progresses towards being a top tenresearch university.Matthew M. FajackVice President and Chief Financial OfficerA Component Unit of the State of Florida I 15 AUDITOR GENERALASTATE OF FLORIDAG74 Claude Pepper BuildingDAVID W. MARTIN, CPA 111 West Madison Street PHONE: 850-412-2722AUDITOR GENERAL Tallahassee, Florida 32399-1450 FAX: 850-488-6975The President of the Senate, the Speaker of theHouse of Representatives, and theLegislative Auditing CommitteeINDEPENDENT AUDITOR'S REPORTReport on the Financial StatementsWe 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 tothe financial statements, which collectively comprise the University's basic financial statements as listed in the table of contents.Management's Responsibilit for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accountingprinciples generally accepted in the United States of America; this includes the design, implementation, and maintenance ofinternal 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 ResponsibiityOur responsibility is to express opinions on these financial statements based on our audit. We did not audit the financialstatements of the blended and the aggregate discretely presented component units, as described in note 1 to the financialstatements. The financial statements of the University of Florida Self-Insurance Program and the University of FloridaHealthcare 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 theaggregate discretely presented component units represent 100 percent of the transactions and account balances of the aggregatediscretely presented component units' columns. The financial statements of tie blended and aggregate discretely presentedcomponent umts were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relateto the amounts included for the blended and aggregate discretely presented component units, is based solely on the reports of theother auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Govern;etil Auditing Slandards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial 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 thefinancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controlrelevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.16 I University of Florida 2012-2013 Annual Financial ReportOpinionsIn 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 presentedcomponent units as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereoffor the fiscal year then ended, in accordance with accounting principles generally accepted in the United States of America.Report on Partial Comparative InformationWe have previously audited the University of Florida's 2011-12 fiscal year financial statements, and we expressed an umnodifiedaudit opinion on those audited financial statements in our report dated December 13, 2012. In our opinion, the partialcomparative information presented herein as of and for the fiscal year ended June 30, 2012, is consistent, in all material respects,with the audited financial statements from wlhich it has been derived.Other MattersRequired Supp/ementag, InfonnationAccounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSIONAND ANALYSIS and the SCHEDULE OF FUNDING PROGRESS -OTHER POSTEMPLOYMENT BENEFITSPLAN, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, althoughnot a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considersit 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 withauditing standards generally accepted in the United States of America, whiich consisted of inquiries of management about themethods of preparing the information and comparing the information for consistency with management's responses to ourinquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. Wedo not express an opinion or provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise theUniversity of Florida's basic financial statements. The President's Message, the University of Florida Overview, the Introductionfrom the Vice President and Chief Financial Officer, and the Supplemental Information for Financial Aid Administered, as listedin the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financialstatements. The President's Message, the University of Florida Overview, the Introduction from the Vice President and ChiefFinancial Officer, and the Supplemental Information for Financial Aid Administered has not been subjected to the auditingprocedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide anyassurance on it.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued a report on our consideration of the University of Florida'sinternal 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 REPORTON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITH GOVERNMENT AUDITING STANDARDS. The purpose of that report is to describe the scope of our testing ofinternal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the University of Florida's internal control over financial reporting and compliance.Respectfully submitted,David W. Martin, CPATallahassee, FloridaDecember 20, 2013Audit Report No. 2014-070A Component Unit of the State of Florida 1 17 MD9AManagement's Discussion and AnalysisFrom the Vice President and Chief Financial OfficerINTRODUCTION AND BACKGROUND NANC HIWIUCTSThe 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 theUniversity of Florida (the University) for the fiscal year ended 2011-12 fiscal year. The increase inassets primarily resulted fromJune 30, 2013, and should be read in conjunction the new investments held bythe Unive on behalf of componentfinancial statements and notes thereto. This is unts- While total assets reased liabilities also increasedrequired by Governental AccountingStandardsBoard (GASB) by $66.o million or io.9%, totaling $672.3 million at June 3o,Statement No. 35, Basic Financial Statements -and Management's 2013, as a result of a $65.3 imilion increase in the amount DueDiscussioand for Public Colleges and Universities, as To Component Units. In consequence, the University's netam.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 residualUniversity management. interest in the University's assets after deducting liabilities. TheUniversity's comparative total net position by category for thefiscal years ended June 30, 2013, and 2012, are shown in thefollowing chart1 Universit s ioni ilos2011-12 fiscal year. Mts of201- 1this in(revenNet thresh MDSAThe University had significant construction activity duringthe year. Completed or substantialy completed construtionprojects included: (i) Lake Nona Research Facility (capitalizedcosts of $50.9 million); (2) Clinical Translational ResearchBuilding including the Institute on Aging Research Building(capitalized costs of $41.7 milhion); and (3) East Campus DataCenter (capitalized costs of $14.1 million). Construction beganor continues on several major projects, including four that,when finished, will be capitalized at over $2oi million: (i)Reitz Union Expansion and Renovation; (2) Chemical BiologyBuflding -Chemistry; (3) Harrell Medical Education Building;and (4) Heavener Hall- School of Business.OVERVIEW OF FINANCIAL STATEMENTSPursuant to GASB Statement No. 35, the University's financialreport includes three basic financial statements: the Statement ofNet Position; the Statement of Revenues, Expenses, and Changesin Net Position; and the Statement of Cash Flows. The financialstatements and notes thereto, encompass the University and itscomponent units,Based upon the application of criteria for determiningcomponent units, the University of Florida Self-InsuranceProgram (the Program), and the University of Florida HealthcareEducation Insurance Corporation (HEIC), are included withinthe University reporting entity as Wended component units.Additional information regarding the blended component unitsis presented in Notes i and 19 to the financial statements.In addition, the University's basic financial statements includediscretely presented component units categorized as follows:finacial statements. This MD&A focuses on the University,excluding the discretely presented component units. MD&Ainformation regarding the component units is includedin their separately issued audit reports, if reporting underGASB standards. Component units reporting under FinancialAccounting Standards Board (FASB) standards do not include anMD&A in their audit reports.The financial statements characterize revenues and expensesas either operating or nonoperating. The principal componentof operating revenues is Grants and Contracts ($i.i billion).The principal component of operating expenses is EmployeeCompensation and Benefits ($1.6 billion). A significant portionof the University's anticipated, recurring resources is considerednonoperating as defined by GASB Statement No. 35. Theprincipal component of nonoperating revenues for the fiscal yearended June 30, 2013, is Noncapital State Appropriations ($485million). Recurring nonoperating expenses consist primarily ofOther Nonoperating Expenses which includes transfers from theUniversity to its component units.STATEMENT OF NET POSITIONThe Statement of Net Position reflects the assets and liabilitiesof the University, using the accrual basis of accounting, andpresents the financial position of the University at a specifiedtime. Net position, the difference between total assets and totalliabilities, is one indicator of the University's current financialcondition. The changes in net position that occur over timeindicate improvement or deterioration in the University'sfinancial condition. The following table summarizes theUniversity's assets, liabilities, and net position at June 30:DirectSupport Organizations -These are separate, not-for-profit corporations organized and operated exclusivelyto assist the University in achieving excellence by providingWill I 1 -111 __Health Science Center at the Umversity ot orlomla.Information regarding the discretely presented c(units, including summaries of their separately issuecstatements, is presented in Notes 1, 2, 3, 6, 9, 12, and20I Untversltyofflorfdo 202-01 Atia lW0MncdaReporEXPENSES, ANDoperatingexpenses ýth',ýTbdne Staemet ofRvne, xessan Chne in Net P sito iiiifoichs.Oprtn ~n ilosortraduring theOea tin Reene Onmllos'f Florid f 21 HHOAthatabout theiurces and11 assist inash flows,=ome due,operating:tivities offinancingassets, an(iiversity e:rs to co:anoý,- ineirectoitnese cnanges mcreasea net nonoperaung revenue Dyz5.in-ffllionr The following summarizes the University's nonoperatingrevenues and expenses for the 2o0 2-13 and 2011 -12 fiscal years:long-term debt. Cash flovthe net source and use ofsales of investments and irCash flows from noncapitactivities not covered in th(Major sources of fundI on,s andnents.those* *($1,567.1S ($523.9al Assetsflows for*Cn * ~ n ol Cas Flw (i ilosEXPENSES,isomin CaiAppro3 and 2011-121J8 Ote Reeus Exess G! aI Or ossai7mljt CAPITAL71a W itmentstill millions]for net capital assets of $1.7 billion. Depreciatiocurrent fiscal year totaled $121.4 million. Thesummarizes the University's capital assets, netdepreciation, at June 30ondingWOA li q. * .ýCAPITAL EXPENSES AND COMMITMENTSMajor capital expenses were incurred on the foll MDSAsupport ot the Legislature, Govemor, board ot and r %0,W # -14 141 W .,f M9 IWIV.Trustees for this important strategic goal. The s d t Questions concerning information provided in the MD&Adesignation include criteria based on spenidming onrsear1ch, six- or other required supplementary information, and financialyear graduation rates, number of doctoral degrees awarded, and statements and notesthereto, orrequests for additional financialnumber of patents awarded. Lawmakers allocated $15 million information should be addressed to Michael V. McKee, Assistantannually 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 $30 million24 1 Uni1versity 20o12.2013 Annual FnanckialReportSTAEMET O NET POITIO aso ue3,0I onsxrssdntosnsU~slveefy ofFloida -ConporentUrifs(FYin2013J2012 Organiation __________ and______ASSETSCash nd Cash Equivalents (Note 1)Inv-tnt e 3)Accounts Receivable, Not (Noe 4)Loans and Notes Receivable, Net (Note 4)Due From State (Note 5)Due From Component Units/University (NoteS )Inventories (Note 7)Other Current AssetsNomTiet AeeabRestricted Cash and Cash Equivalents (Note 1)Restricted Investments (Note 3)Loans and Notes Receivable, Net (Note 4)Depreiable Capital Assets, Not (Note8)Nomjepreciable Capital Assets (NoteS8)Other Noncurrent AssetsToa o~wutourw satwocsTOTNAL A33DIFRRE OUTFLOWS OFIRESOURCEAccumulated Decrease in Fair Value ofInterest Rate Swap AgreementsTOTAL ASSETS AND iDEEPiRRED OUTO OF URCSLIABlNMAccounts PayableSalaries and Wages PayableuToTComponent Units/University (Note 6)Unearned Revenue INote 10)Deposits Held in CustodyOther Current Liabilities (Note 11)Long-Term Liabilities -Current Portion: (Note 12)Capital Improvement Debt PayableBonds PayableInstallment Purchase Agreements PayableCapital Leases PayableCompensated Absences PayableLiability for Self-Insured Claimstoneueart Uilitih (Note 12)Capital Improvement Debt PayableBonds PayableLoans and Notes PayableInstallment Purchase Agreements PayableCapital Leases PayableCompensated Absences PayableOther Postempioyment Benefits PayableLiability for Salf-Insured ClaimtOther Noncurrent LiabilitiesTintlNneuuen LablitiesTOTAL uIA11IJIHESNETPOSITIONNet Investment in Capital AssetsRestricted:Nonexpendable:EndowmentEndowmentCapital ProjectsDebtServiceOtherUnrestrictedTOTAL ET PosnloMTOTAL UARJ11W AND NET POSM0NThe coppnying notes am amn t pW o se f inanci als rnmenM231$ 2851,071,09490,8022,82114,7954,5701,9841^213A3421104,05336,37553,0721,4sWA7wS 3., MII$ U6,91.19,25280,17425,4307,1337,3078461299,14311,596112,094772104,3M6139,77544,55118,768$ 503987,024145,3823,15531,53513,3204,(801,82416100.737,4911,549,324116,3'91,128$ ZE$ 75A0331928614,86325,5759,6108,3496,919868747,24315,440119,3851,0773,07690,621102Z45887,3919,10M$ 29,405196,48499,848101.885376,12143X,010,4411,M00,40718Z,45974,076182$ 13,3732,38968,50258,46650017,10826,68530012,12591,2102,8%30,74212LumS 63,5912,46956,1385,2533,812172765,3M06,1477,568$ 10,8044,9481,600382621.9751865,53037,M48,0005164567Z112$ 79,734212,8552M32755,18514,3862ZS9557,57619,500316,093748,848127,797226,15339,425S z.I3MS198,03763,60423,072,M8W.97721,3246,7562,04089,181283,2599711,244741,634$ ziz&m1,554,445119,97723,78135.65364,217W53SNO9B119,303Z,3%1M1$ 54A1Sl30,08847,2515,289568,081161,189Z935M=1,183,839261,911309,341125,1621AN8 Z39SM__14092EA Componenlt of State of F/rida 1 25 asi FinalStatements2 312-13 2MI-12 Organizations Afiiats adodStudent Tuition and Fees $ 500,508 $ 462,050 $ -$ -$Scholarship Allowances (148,064) 141,554)-Student Tuition and Fees, Net of Scholarship AlIowa nces : Z" 34Federal 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,=30,629Gifts and Donations -Component Units 84,290 9,642Royalties 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 52,483TotaluOperaingRees 1,61171 1)57,8 232,817 197... 1,603,112Employee 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 oiflGisborLs-- 410,717)Capital State Appropriations 9,484Ci ,ta tcts, Donations, and Student Fees 13,922AdtostoPermanet Endowments -Increase.(Decrase) in Nt ePouitlo (17=22)Adjustmentto Beginning Nat Position (Note 2)Nat Positio, End of Yew $ ta o s a sThe acompanying notes are an integral part of these financial statemnnts.26 I lnAersly of Florid 201-2 203 ArrnudFlnancical RepoftUni Wversityof FloridaM213. 2011-12CASH ROM FROM OPERATING ACTIVITIESTujition and Fees, Net $ 355,196 318,411(3rarts and Contracts 1,0KZ254 1,043,057Sales and Services of Auxiliary Enterprises 13884 117,239Sales and Services of Educational Departments 51.538 47,609Repayment of Loans and Notes Receivable from Students 7,75 5,962Interest on Loans Receivable 1,209 786Other Operating Receipts 3,073 2,447Payments to Employees (1,567,072) (1.563.104)Payments to Suppliers for Goods and Services (523,864) (563,67Payments 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) (7Not Cub Used by Operatling Activities (SSW98) (627,)CASH FLOWS FROM NONCAPITAL. FINNCIG ACTIVITNoncapital State A propriations 485,479 527,880Federal and State FInancIal Aid 114,094 116,178State Appropiated American Recovery and Reinvestment Act Funds 2,384Noncapital Grents, Contracts, and Gifts 84,091 81,077Direct Loan Program Receipts 253278 245,805Direct Loan Program Disbursements (253,27) (245,794)Net Change in ldr Otes 58,500 29Other Nonoperasing Receipts 948 2,180Other Nonoperating Disbursements 48.3) -3,979)Not Cash Provided by Nweephal Financin Activities 7421 7MmCASH FROWS FROM CAP1ITL ANI RELATED FINANCING ACTIVmIESProceedsfrom Capital Debt 5= 270W4Capita State Appropriations 26,2D4 5089Capital Grants, Contracts, Donations, and Student Fees 9,548 3,349Proceeds from Sales of Capital Assets 358 193Other Receipts for Capital Projects 17 55Purchase 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 ACIVIIESSale of Inestments 1,584849 1,476,554Purchase of Investments 11,65W,1132) (1,492,980)Investment Income .2041 24,8NotCash Prvided (Used) by Investi Activities .......Nern Decrese in Cash and Cash Equivalents (213) (IMCash and Cash Equivelens Beginnnlg of Year 519 1.59Cash and Cash Equivalecnt End of Year $ 306 $ 519RECONCIUA11ON OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIESOperating Loss S (27.809) $ 87,040)Adjustments to Reconcile Operating Loss to NetCash Used by Operating Actties:Depreciation Expense 121,356 1168,87Change in Assets and LiabiltiesReceivables, Nat 54,879 (27,715)Due From Component Units (13,183) (1,843)Inventories 110 185Other Assets (68) 7Accounts Payable 1,617 8,974Salaries and Wages Payable (109) 3,497Due to State and Component Units -(1,414)Unearned Revenue (145) (362)Deposits Held in Custody 136 1,175Other Postemployment enefit Payable 37,317 35,398Compensated Absences Payable 15,584 (80,087)Liability for Self-Insured Claims (46,885) 4,424NET CASH USED BY OPERATING ACTIVITIES $ (5%.997) $ (6271M)SUPPlLEMENTAL DISCLSURE OfNONCASH OPERATING. INVESTI NG, AND CAPITAL RELATED FINANCING ACTIVTIESThe 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 forthe Statement of Cash FRows:Selff-isurance program adjustment (Note 18) $ 27,104Unrealized gains on investments $ 4,.04Acquisition of equipment under installment purchase agreements $ 840Less on dispoalof capital assets $ (3,898)The wnipanýig notes ar an integral part of Mese financial statementsA Component Ut of the Wtteof Fb*d I 27 lersity,ý Board.ccolkoard'si'ancialriteriawhicho and'omPo.rustetn1or aiLed by a rtiembers. eý3oard of stbers are aiould czis aual28 1 A Uv of flox Wa BasiUfAP1n 1004.24, Florida1, 1994, asa self-Section 1004.24,r of Florida Foundation, Inc., solicits, collects,Lnd directs contributions to the various academicts and programs of the University, and assists thein fund raising, public relations, and maintenance ofCIaccelto Fland soils in adequatHowever, financinot included inf certain csity's finan(.1 statarnD.1IThes1axe inchA ComponediWtofthe State of Florida 1 29 NotestoagriciI prternctice Plans, as7. The Facultynical practiceeducý~3I, inasfacultylhese organizationsistruction functionUn.iwvthe ediinvestfor therd of3 andiagedr the1~S)spital and Othersdng Hospital andShincwasoclis at the University.2nt, as of July i,.with the Floridaiewalr thefromo. AtcorAssociates, Inc.termment.eriodThe cifor arIn adState ]ie co:greemninat(Practice Associa11, Inc.*ttAis30 1 U1niversity of Forida 2012-2013 Annuol Fkanucidt Reportis a Floridiorganizedto the co:surroundirmissions olow-withpartinents, Inc.* (the Corporation;r the purpose of providing housircome families, especially those affiof Florida. Capital was contributversity of Florida Foundation, Incassets, aererng from noneall applicablb.owsactivDgnizedý, gains,abilitiesognizedig time,s arity followsiG. B(The LprindwithforncLes g(ass ofI operatingblic service. 0]ill fiscal transaofus reportin!report as aThis electi(.Banents:* Otheiajor sources afted netState oFloridd 1 31 Notesof tuition scholarships, discounts, and allowances. Tuitionscholarships, discounts, and allowances are the differencesbetween the stated charge for goods and services provided bythe University and the amount that is actually paid by a studentor a third party making payment on behalf of the student TheUniversity applied "The Alternate Method" as prescribed inNACUBO Advisory Report 2000-05 to determine the reportednet tuition scholarships, discounts, and allowances. Under thismethod, the University computes these amounts by allocatingthe cash payments to students, excluding payments forservices, on a ratio of total aid to the aid not considered to bethird-party aid.The Statement of Cash Flows is presented using the directmethod in compliance with GASB Statement No. 9, ReportingCash Flows of Proprietary and Nonexpendable 7rust Funds andGovernmental Entities That Use Proprietary FundAccounting.1, Cash and Cash EquivalentsThe amount reported by the University as cash and cashequivalents consists of cash on hand and cash in demandaccounts. University cash deposits are held in banks qualifiedas public depositories under Florida law. All such deposits areinsured by Federal depository insurance, up to specified limits,or collateralized with securities held in Florida's multiplefinancial institution collateral pool required by Chapter 280,Florida Statutes. Cash and cash equivalents that are externallyrestricted to make debt service payments, maintain sinking orreserve funds, or to purchase or construct capital assets or otherrestricted assets, are classified as restricted. The Universityconsiders cash balances in overnight sweep accounts to beinvestments, as permitted by GASB Statement No. 9.I. Capital AssetsUniversity capital assets consist of land, construction in progress,buildings, infrastructure and other improvements, furnitureand equipment, library resources, property under capital lease,works of art and historical treasures, computer software, andother capital assets. These assets are capitalized and recorded atcost at the date of acquisition or at estimated fair value on thedate received in the case of gifts and purchases of State surplusproperty. Additions, improvements, and other outlays thatsignificantly extend the useful life of an asset are capitalized.Other costs incurred for repairs and maintenance are expensedas incurred. The University has a capitalization threshold of$4 million for intangible assets, which includes computersoftware, and $5,ooo for tangible personal property. The costsof all new buildings and projects adding new square footage arecapitalized. Infrastructure and leasehold improvements have a$25oooo capitalization threshold. For building renovations, thethreshold is $250,0oo or less if the amount expended is at least25% of the cost basis of the building. Depreciation is computedon the straight-line basis over the following estimated useful lives.SBuildings -5 to 50 years, depending on constructionInfrastructure and Other Improvements-1o to 5o yearsFurniture and Equipment- 3 to 20 years* Library Resources -io years* Property Under Capital Lease- 40 yearsComputer Software- 5 yearsK. Noncurrent LiabilitiesNoncurrent liabilities include principal amounts of capitalimprovement debt payable, loans and notes payable, installmentpurchase agreements payable, capital leases payable,compensated absences payable, other postemployment benefitspayable, liability for self-insured claims, and other noncurrentliabilities that are not scheduled to be paid within the nextfiscal year. Capital improvement debt payable is reported netof unamortized premiums or discounts and deferred losseson refunding. The University amortizes debt premiums anddiscounts over the life of the debt using the straight-line method.Deferred losses on refundings are amortized over the life of theold debt or new debt (whichever is shorter) using the straight-line method. Issuance costs paid from the debt proceeds arereported as Other Noncurrent Assets, and are amortized over thelife of the debt using the straight-line method.L Other Significant Accounting PoliciesOther significant accounting policies are set forth in the financialstatements and subsequent notes hereafter.*ADJUSTMENTS TO BEGINNING NETPOSITION- COMPONENT UNITSTable x summarizes the Adjustments to Beginning Net Positionreported in the Statement of Revenues, Expenses, and Changesin Net Position to reflect prior year accounting changes andcorrection of a prior year accounting error of the University'sdiscretely presented component units.Table 2 summarizes the changes to Beginning Net Position forthose discretely presented component units that are no longerreported in the University's financial statements.82 1 2012-2013 AnuaoFinanc~ialReport.5. ;.

• S S S O

• Sksavings accounts in qualified public depositories, as definedin Section 280.02, Florida Statutes; direct obligations of theSectionto investAdminist!s; secnd mthatoverissionregisteapterTrnftICadmnniste:theStateoffloida 1 33 Notesntsida PRIMEtandard &(WAM) ofhe averagein the casesitivity ofrnges. Thereported at3 anortizofAd&Accountsare uTabe.* ppet i Investmentments onbenefit ofd in the1hensiveexternal imity andvariousA.Poolsucation InsuraSi), plus amcU]otherretelyternal-'s Cinrsity'so pay3aSi34 1 3.rit N4Ai.8.t 60 Copoen Unit Deb Ineten a-I. ' .'A.~~- 0* 3FK .5VKKK. ~ KY Ai..the fiscal,resentedthe most'le. Someitionally,includeient unitniversity,ment ofi by theas of June 30. 2013, are summanzed inTiA: 8 't AcccromoLion rgly,Net ,comidue from and tcLUVCI ILy.types:itainedm andsupplyprocess.sed andMerchandise Inventories -Those inventories maintainedwhich are available for resale to individuals and other Universityand notes departments, and are not expensed at the time of purchase.st estimate These inventories are reported on the Statement of Net Positionon history, and are valued at cost using either the moving average methodreceivable or the first-in, first-out method.d upon3, is ial bpoflon tlti Tal 13.' Caia Ipoe en et-aal

k. .,rnip. ate,* **, 611 Note Paal*-rftle- .herient n39 NotesTable ~ ~S 17,aptlLessPaaltivemity follows Governmental Accounting StandardsASB) Statement NO. 45, Accounting and Financial Reportingývers for Pstemployment Benefits Other Than pnsions, forpostemployment benefits administered by the StateJealth Insurance Programp.lescription. Pursuant to the provisions of Sectioni, Florida Statutes, all employees who retire from theity are eligible to participate in the State Group Healthce Program, an agent multiple-employer, defined-benefitan). The University sub~sidizes the premium rates paid-es by allowing them to participate in the Plan at reducedled group (implicitly subsidized) premium rates for bothnd retired employees. These rates provide an implicitfor retirees because, on an actuarial basis, their currenture claims are expected to result in higher costs to thei average, than those of active employees. Retirees areI to enroll in the Federal Medicare program for theircoverage as soon as they are eligible. A stand-alones not issued and the Plan information is not included inDrt of a public employee retirement system or anotherLg Policy. Plan benefits are pursuant to provisions of112.0801, Florida Statutes, andbenefits and contributionsimended by the Florida Legislature. The University hasance-funded or established a funding methodology forual Other Posternployment Benefit (OPEB) costs or the,B obligation, and the Plan is financed on a pay-as-you-s. For the 2012-13 fiscal year, 2,451 retirees receivedployment benefits. The University provided requiredutions of $io,o65,ooo toward the annual OPEB cost,3ed of benefit payments made on behalf of retirees forexpenses (net of reinsurance), administrative expenses,insurance premiums. Retiree contributions totaledý,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*ual required contribution (ARC), an amount actuariallynied in accordance with the parameters of GASB 45. Thepresents a level of funding that if paid on an ongoingprojected to cover normal cost each year and amortizeunded actuarial liabilities over a period not to exceed 30able ig shows the University's annual OPEB cost for the3, the estimn40 1 Univs1tyofF/or

.3.:~d ROO:6iic Uxuer--benefitrs. Thebniajuesin,,,* I k 3t 'P.refa o,,

• 8 'NetIObig 'on$IuI.ChzStateoffiorbo 1 41I Notesinvestment Flan totaled $3,5115,977 and employeetotaled $1,997,341.)f Florida establishes contribution rates foremployers and employees. Effective July 1, 2011,ere required to contribute 3% of gross salaryment. Contribution rates during the 2012-13 fiscalnted inTable 2 1.I .tes4fiedfient Son or aiter juiy 1, 20211, vest at eigxi years <o creuuaoie serwvce. Fl 'e SaAll vested members, enrolled prior to July , 202i r, are eligible for Fnormal retirement benefits at age 62 or at any age after 30 years Mof service, except for members classified as special risk, who are D e m Oeligible for normal retirement benefits at age 55 or at any age ! tM efafter 25 years of service. All members enrolled in the Plan on or a oafter uly 1i, 2011, once vested, are eligible for normal retirementbenefits atage 65 or any time after 33 years of creditable service, Notesexcept for members classified as special risk, who are eligible for Ecnormal retirement benefits at age 6o or at any age after 30 years iof service. Members of both Plans may include up to 4 years of (B Rtroicredit for military service toward creditable service. The Plan remlydalso includes an early retirement provision; however,, there isabenefitreductionforeachyearamemberretiresbeforehirrhr The universits liablyor partic iS to thenormal retirement date. The Plan provides retir n dsablity paym- ofthe required contribution at the rates and frequenciesand death benefits, and annualcost-of-li a establishi d by law on future payrolls of the University Therewere 7,915 Universityparpants during the 2012-213 fiscalDROP, subject to provisions of Section 121,.091, FlordaStatutes, year. The Ueniversity's contributions for tie fiscal years endedpermits employees eligible for normal retirement under June 30, 2oii, and June 30, 2012 totaled $38,8"3,505 andthe Plan to defer receipt of monthly benefit paymens while $16,712,175, respectively which were equal to the requiredcontinuing employment with an FRS empl~oyer. An employee contributions for each <fiscal year. For the fiscal year end~ed Junemay participate in the DROP for a period not to exceed 60 30, 20213, the University's contributions totaled $217,809,204 andmonths 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 informationTrust Fund and accrue interest of the FRS are included in the Stats ComprehensiveAs provided in Section I121.45o0, Florida Statutes, eligible FRS Annual Financial Report, which is available from the Floridamembers may elect to participate in the Investment Plan in Department of Financial Services. An annual report on the FRS,lieu of the FRS defined-benefit plan. University employees which includes its financial statementsrequired supplementaryalready particpating in the State University System Optional information, actuarial report, and other relevant information, isRetirement 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 ofinvestment fund4s. The Investment Plan is funded by employer RSaeUiest vtmOtoaand employee contributions that are based on salary and B. Universit Smstmembership class (Regular Class, Senior M.anagement Service .... ..Class, etc.). Contributions are directed to individual member Section1135,FlodaSatu ,provides fran ptionalRetirementaccounts, and the individual members allocate contributions Program (Program) for eligibe university instructors andand account balances among various approved investment administrators. The ProgramisdesignetoaidState universities inchoices. Empilovees in the Investment Plan vest at onie year .recruitintyemnylovees bv offerine more Tortabilitv to emT)ovees not42 1 Unlversty of Florida tcsan.Nos, which include aan become eligibburitynot toto theed by theitynrployees do not coniD this program.

tes7, %"",7 -e; all lossesin these categories are completely selfState through the State Ris Management Trustied pursuant to Chapter 284, Florida Statutes.tort claims are limited to $200,000 per person,per occurrence as set by Section 768.28(5), Floridailationof premiums considers thecash needsof thehe amount of risk exposure for each participant.en no significant reductions in insurance coverager year coverage. Settlements have not exceeded!rage during the past three fiscal years.Section 1i1o.123, Florida Statutes, Universityy obtain healthcare services through participationoup health insuranceplan orthrough membershipintenance organization plan under contract withý State'srsk financing activities associated withealth insurance, such as risk of loss related to-escription drug claims, are administered through[oyees' Group Health Insurance Trust Fund. It isthe State not topurchase commercial coverage forcovered bv this Fund. Additional information on44 1 Yniversqtofflorkld B.LTheareed bary lossV forsubjectper-claiexceedal and ccýes in Notesdebt. In addition, tile acflvitylS reiatea revenues, expenses, gains,FUNCTIONAL DIS RITION OF losses, assets, and liabilities are required to be accounted forseparately. Transportation and Parking Services provides theOPERIATINIG EXPENSES University with safe and adequate parking facilities. SeveralThe 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 ofon the nature of the activity, which represents the material Housig and Residence Education provides safe and affordableportion of the activity attributable to the departmnt. For iving space for students of the .niversity of Florida. Capitalexample, activities of academic departments for which the improvement debt hasbeen issued over the years to provideprimary departmental function is instruction may include some funding for the construction of facilities to house students ofTal 24 FucinlEpneStudent Activity Revenue Bonds, Series 2013. The bonds will berepaid from student activity and service fees and the proceedswill be used to renovate and expand Wayne Reitz Union,the community center of the University. The bonds will maturein annual increments starting on July 1, 2O14, and ending on July1, 2033. Interest payments are due semiannually on Januaryxand July i beginning January i, 2oQ4.On November 20, 2013, the Florida Board of Governors, on behalfof the University, issued $24805o,00oef Utniversity of FloridaHiousingormitory Revenue Bonds, SerieS 201r 3A.The bonds willbe repaid from dormitory fees charged to students. $i9,6oo,oooof the proceeds will be used to constructa 255-bed dormitorywith statef-the-art features comtplying with th~e Am~ericanswith Disailities Act The remaining $5,0o5,ooo will refundportions of the Student Housing Auxiliary Debt Bonds, Series2005A, maturing in years 2o16 through 20o2y The-new bondswill mature in annual increments starting on July 1, 2014, andendingon July x, 2033. Interest payments are due semiannuallyon January i and July i beginning July 1, 20 14.On November 21, 201 3, Shands Jacksonville Medical Center, Inc.(a subsidiary of Shands Jacksonville Healthcare, Inc., a discretelypresented component unit of the University), borrowed$123,645,000 with the issuance of Healthcare Facilities RevenueBonds, Series 201 3A and 2013B, for $64,240,000 and $59,o5,ooo,respectively. The proceeds will be used to refund the Series 2013A. Blended Component UnitsThe University has two blended conpcin Note z. Financial information for tcomponent units is presented in Table 2B. Discretelv Presented ComponentThe University's financial statementspresented component units as discujcomponent units comprise ioo% of the tbalances of the aggregate discretely46 1 Utliersity of FhIrl 2012-2013 AnuramICONDENSED S'Assets(28,979) 3,041,26128,93212,776 231,35944,551 383,66186259 615,020Total U672,30oOpera093t4U$$ -$ Z36IL96SEquivalents Tak4 6ret S3 up por Oraiain 3..tsxrssdDue from Component Units/Uniersity S $79,3 $Other Current Assets 106,28Capital Assets, Net 70,755Other Noncurrent Assets 1,551,350 ... .. _Total Assets 1,807,779LabilitiesDue to Com ponent UnisU n y ..28,214Other Current Liabilites 21,070Noncurrent Uablities -6,204Total Liab~ilities 75,8Not PostinNet Inetmen inh Capital Assets 19,255Restulcted-Nonexpenclble Endowment 1,163,209Restcted Endowment 261,9110rO r 297,106unrestricted (9,190)Total Net Posiin $ 1,7Z291 $CONDENSED STATEMENT OF REVENUES, ANDC NESIN NETPOSmONOperating Revenues $ 79,945 $Operating Expenses .11 39,959)OperatngInoe (Loss) (60,014).Nonoperating Revenues(Expenses)Investment Income, Net of Expenses 114,855Net Increase in the Fair Value of Investmeants 762Addition to Permanent Endowments 40,175Other 11,93Change in NetPosition 107,-7 107,57Net Position, Beginning of Year 1,624,620Adjustmentsto Beginning Net PositionNetPositio, nnng o Year, as Restated(Note 2) 1,624,620 _____Net PositionEnd ofYew $ 1,732=m $48 1 Vniverslty of fialoru 2012-2013 AnualFinnwcialReport$ 11,843 $ 10,656 $ $ -$ -$ 101,88561,558 1,571 8,329 830 1,804 331,8%5175,054 19 -10,707 -256,53551,788 431 -10,441 1,614,010300,243 12,677 6,329 11,537 12245 2,304,3252365,99392,031158,04786,25912,23543,702$ 14Z196$ 65,769(104,341)(38,572)6O75,32948,11715,481127,357(642)126,715$ 142,19611,41516711211,M941943053493$ 48,462(2,8G7)43,8551,259145,107)16867967$ 93-301 68,5024,082 588 12,160 130,W48S- -124,8474,082 889 12,180 324,2%3,737 10,707 119,977--1,163,M261,9119 1309,341(1,490) (59) 85 125,102$ Z247$ IM$$ U 85,98.$ 9,221 $ 827 $(11,599) (1,571)(2,378) (744)129 $ 232,817(44) 4295,574)85 (62,757)10 119,19210,735-*40,18411,392 29,174(368) 10,648 85 136,5282,615 1,844,826-( T,324)2,615 .1,43,502$ 2MS$ 1USm.$ 8 $ 1*1mA CO Iw t nofftheSlaWOf MWO 49 NotesTabl 27.: I ceceCne Afflae aoosepeqyhf' 'Assocation Physcins Asscates.W Association, Heltcre ScneInc. Inc. Inc. Inc. Cmraer6WrS"13 W11*013 V"30/013 6/30"13 6W=*/013 AffiliatesAssetsDue from Component Units/University $ 2,172 $ 6,019 $ S $ -$ 2 $ 8,253Other Current Assets 71,599 41,813 3,682 8,537 399 126,030Capital Assets, Net 50,305 17,226 -3,976 71,507Other NoncurrentAssets 25,120 75 -..25,195Total Assets 149,196 65,133 3,682 8,537 4 : 230,985UabilitiesDuet~oComponient Units/University 2,032 -755 2,161 4,948Other Current Liabilities 10M08 9,420 160 44 1,907 21,600Noncurrent Liabililties 38,82_6_73 ---___ 45,564Total Liabilties 4.8,8 18189 180 799 4,M8 72,112Net PositionNetlInvestmntin Capital Assets 10023 9. .-3,976 23,781Unrestrictedt 90,277 37,182 _ 3,522 7,739 (3,607) 135,092TrotalN rotoition $ 100,30 4o6,94. 4 $ 3= $ 7,738 $ I6 15"nIS~CNESDSTATEMENTOF RVN ES, PEfNSES. AND CHIANGES I NET POS1IONOperating Revenues $ 360,968 $ 192,309 $ 17,253 $ 1,452 $ 215 S 578,197Operating Expenses (103,003) (94,401) (256) (367) (29,925) (227,952)Operating Income (Loss) 257,965 97,908 16,997 7,085 (29,710) 350,245Nonoperating Revenues (Expenses)Investment ncome,Net of Expenses 371 23 2 3 399Net Increase in the Fair Value of Investments 1,138 ---1,138Other (2.57,469) (97,855) (16,825) (8,314) 29,710 (350,553)Ch~ange in Net Position 2,005 276 174 (1,228) _ __ 1,229Net Position, Beginning of Year 98,295 46,668 3,348' 8,964 369 157,644Adjustmentsto Beginning NettPosition -* -____. _ _, ......... .Net Position, Beginmnng ofYear, as Restated (Nota 2) 989 46,6.8 3,348 9.864 369 157,644N--------b-202-2013 Aaua/ fincicol ReShandslirtits3te Swap108,270Operating Re$11,640 (6)(2,50) -(117.091) (25,312)11,634(142,403)-6------2ý 9987,531AdjustiTg NetNet Position, Beginning of Year,Neot Psosion, End of Yewlordda 1 51 NotesTal 29 Semn IfraioDepewbue of HusingTrmspouldles and and ResdienceParking Service Educaton0S3S13 W5IV13CONDENSED STATEWMNT OF NET POSmONAssetsCurrent AssetsCapital Assets, NetOther Noncurrent AssetsTotal AssetsLiabilitiesCurrent LiabilitiesNoncurrent LiabilitiesTotal LiabilitiesNet PositionNet Investment in Capital AssetsRestrictedUnrestrictedTotl Net Posien$ 8,884,94939,582,8182,896,35222,4589425255,30017,M4,6807,122,7326,129,211$ 3%910152$ 4,452,026104,855,12322,399,910_ 131,707,05910,087,257____ 67,139.55577,226,81254,961,0781,878,535(2,1%9.36W)$ 54AS247CONDENSED STAM MENT OF REVENUES, EXPENSES, AND CAGES IN NET POSITOOperating Revenues (Expenses):Operating RevenuesDepreciation ExpenseOther Operating ExpensesOperating IncomeNonoperating Revenues (Expenses):Investment IncomeInterest on Capital Asset-Related DebtOtherTransfersNet Nonopereting Revenues (Expenses)Change in Not PositionNet PositIon, Beginning of YearNaot Poeien, End f YearCONDENSED STATEENT OF CASH FLOWSNet Cash Provided (Used) by:Operating ActivitiesNoncapital Financing ActivitiesCapital and Related Financing ActivitiesInvesting ActivitiesNet Increase (Decrease) in Cash and Cash EquivalentsCash and Cash Equivalents, Beginning of YearCash and Cash Eq*ulent, End olfYew$ 21,451,438(2,343,8M)(16,739,884)2,367,69680,140(1,118,%5)(1,036,530)(1,097,21)(3,172,016)(804,320)31,360,943S$ 6,472,594(29,817)(4,029,646)(2,412,991)3,14086$ _3,26$ 48,678,910(4,648,104)(37,360,146)6.670,660250,166(3,125,180)(2,723,042)959,e66(4,638,400)2,032,26052,447,987$54AM4127$ 12,104,118(11,M6,629)(14,053,016)8,181,422(5,124,105)8,130,212$ 3,055,10752 1 Unlver4 tof Flouddo 2012-201f3 AoJnrnua inandReportActumarla IAA~assUU&up rner~ta Info t ~Fiacal Aiddm isee fo th:Ya Ene. e 30 20 W AUDITOR GENERALSTATE OF FLORIDADAVID W. MARTIN, CPA PHONE: 850-412-2722AUDITOR GENERAL G74 Claude Pepper Building FAX: 850-488-6975111 West Madison StreetTallahassee, Florida 32399-1450The President of the Senate, the Speaker of theHouse of Representatives, and theLegislative Auditing CommitteeINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMEDIN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDSReport on the Financial StatementsWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the University of Florida, a component unit of the State of Florida, and its aggregate discretelypresented 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 otherauditors who audited the financial statements of the blended and aggregate discretely presented component units, as described inour report on the University's financial statements. Th-is report does not include the results of the other auditors' testing ofinternal control over financial reporting or compliance and other matters that are reported on separately by those auditors.Internal Control Over Financial ReportingIn planning and performing our audit of the financial statements, we considered the University's internal control over financialreporting (internal control) to determine audit procedures that are appropriate in the circumstances for the purpose of expressingour opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University'sinternal 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 thenormal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. Amaterial weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that amaterial 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 Financial ReportOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was notdesigned to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given theselimitations, 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 MattersAs 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 donot express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are requiredto be reported under Government Auditing Standards.We noted certain matters that we reported to University management in our operational audit report No. 2014-044.Purpose of this ReportThe purpose of the INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS is solely todescribe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinionon the effectiveness of the University's internal control or on compliance. This report is an integral part of an audit performed inaccordance with Government Auditin~g Standards in considering the University's internal control and compliance. Accordingly, thisreport is not suitable for any other purpose.Respectfully submitted,David W. Martin, CPATallahassee, FloridaDecember 20, 2013Audit Report No. 2014-070A Component Unit of the State of Florida I 55 Executive OfficersDr. J. Bernard MachenPresidentJane AdamsVice President for University RelationsElias G. EldayrieVice President and Chief Information OfficerMatthew M. FajackVice President and Chief Financial OfficerPaula Varnes FussellVice President for Human Resource ServicesDr. Joseph GloverProvost and Senior Vice Presidentfor Academic AffairsDr. David S. GuzickSenior Vice Presidentfor Health AffairsJamie Lewis KeithVice President and General CounselDavid E. KratzerVice President for Student AffairsThomas J. MitchellVice Presidentfor Development and Alumni AffairsDr. David P. NortonVice Presidentfor ResearchDr. Jack M. PayneSenior Vice President for Agriculture and Natural ResourcesDr. Winfred M. PhillipsSenior Vice President and Chief Operating OfficerCurtis A. ReynoldsVice Presidentfor Business AffairsPrincipal Finance andAccounting OfficialsMichael V. McKeeAssistant Vice President and University ControllerBrad S. StaatsAssistant Vice President for Contracts and Grants Accounting ServicesBradley W. BennettSeniorAssociate Controller for University Disbursement Services,Asset Management and Cost AnalysisStuart E. HoskinsSenior Associate Controller for University Bursar and TreasuryManagementKim C. SimpsonSenior Associate Controller for Operational Controls and EfficienciesKathleen M. TillettSenior Associate Controller for General Accounting,Financial Reporting, Payroll and Tax Services56 1 Universityof Florida