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College of Engineering PO Box 116134 UF Training Reactor Facility Gainesville, FL 32611 352-294-2104 bshea@ufl.edu March 25, 2015 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 | College of Engineering PO Box 116134 UF Training Reactor Facility Gainesville, FL 32611 352-294-2104 bshea@ufl.edu March 25, 2015 U.S. Nuclear Regulatory Commission 10 CFR 50.4, Written Communications ATTN: Document Control Desk UFTR Operating License R-56, Docket 50-83 Washington, D.C. 20555-0001 | ||
==Subject:== | ==Subject:== | ||
UFTR Supplemental Response to Request for Additional Information (TAC NO. ME1586)In July 2002, the UFTR submitted a request for license renewal (ML022130145). | UFTR Supplemental Response to Request for Additional Information (TAC NO. ME1586) | ||
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). | 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 (ML1321A048). In September 2014, the UFTR provided updated financial information (ML14255A368). | ||
By letter dated June 9, 2014, the NRC requested updated financial information (ML1321A048). | Attached is additional updated financial information, including a new Statement of Intent letter. | ||
In September 2014, the UFTR provided updated financial information (ML14255A368). | This submittal has been reviewed and approved by UFTR management and by the Executive Committee of the Reactor Safety Review Subcommittee. | ||
Attached is additional updated financial information, including a new Statement of Intent letter.This submittal has been reviewed and approved by UFTR management and by the Executive Committee of the Reactor Safety Review Subcommittee. | |||
I declare under penalty of perjury that the foregoing and attached are true and correct to my knowledge. | I declare under penalty of perjury that the foregoing and attached are true and correct to my knowledge. | ||
Executed on March 25, 2015.Brian Shea Reactor Manager 035 The | Executed on March 25, 2015. | ||
I intend to request and obtain these funds sufficiently in advance of decommissioning to prevent delay of required activities. | Brian Shea Reactor Manager 035 The Foundationfor The Gator Nation An Equal Opportunity Institution | ||
UFUNIVERSITY f Office of the Vice President 1 Tigert Hall and Chief Financial Officer P 0 Box 113240 Gainesville, FL 32611-3240 352-392-2402 Telephone 352-846-3546 Fax Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: DOCKET 50-83, STATEMENT OF INTENT As Chief Financial Officer of the University of Florida, I exercise express authority and responsibility to request from the State of Florida funds for decommissioning activities associated with operations authorized by U.S. Nuclear Regulatory Commission License No. R- | |||
: 56. This authority is established by the University of Florida Board of Trustees resolution R01-1. | |||
Within this authority, I intend to r~quest that funds be made available when necessary in the amount of $4.5 million to decommission the University of Florida Training Reactor, located in Gainesville, Florida (the current decommissioning cost estimate is $4.03 million). I intend to request and obtain these funds sufficiently in advance of decommissioning to prevent delay of required activities. | |||
A copy of Resolution R01-1 is attached as evidence that I am authorized to represent the University of Florida in this transaction. | A copy of Resolution R01-1 is attached as evidence that I am authorized to represent the University of Florida in this transaction. | ||
Michael V. McKee Interim Vice President and Chief Financial Officer University of Florida February 17, 2015 | Michael V. McKee Interim Vice President and Chief Financial Officer University of Florida February 17, 2015 | ||
==Attachment:== | ==Attachment:== | ||
As stated cc: Dean - College of Engineering UFTR Facility Director UFTR Reactor Manager UFTR Licensing Engineer The Foundationfor The Gator Nation An Equal Opportunity Institution | |||
UNIVERSITY OF FLORIDA BOARD OF TRUSTEES RESOLUTION Number: R01-1 | |||
==Subject:== | ==Subject:== | ||
Presidential Authority Date: September 7, 2001 The University of Florida Board of Trustees hereby resolves: (1) That the authority of the President of the University of Florida under current law, including the authority to enter into contracts on behalf of the University Board of Trustees, is hereby affirmed; and (2) That the President is hereby authorized to approve travel under Section 112.061, F.S., and to take routine administrative actions on behalf of the University of Florida Board of Trustees under the Florida Administrative Procedures Act, Chapter 120, F.S., which shall not include the approval of University rules.The President is authorized to further delegate to University personnel the authority described as long as such delegation is in writing and a copy is filed in the General Counsel's Office.This affirmation and authorization is effective as of July 1, 2001.Resolution KUFUNIVERSITY of College of Engineering PO Box 11.6134 Uiniversity qf Florida Training Reactor Gainesville, FL 32611-6134 352-294-2104 August 19, 2014 MEMORANDUM TO Decommissioning File | Presidential Authority Date: September 7, 2001 The University of Florida Board of Trustees hereby resolves: | ||
(1) That the authority of the President of the University of Florida under current law, including the authority to enter into contracts on behalf of the University Board of Trustees, is hereby affirmed; and (2) That the President is hereby authorized to approve travel under Section 112.061, F.S., and to take routine administrative actions on behalf of the University of Florida Board of Trustees under the Florida Administrative Procedures Act, Chapter 120, F.S., which shall not include the approval of University rules. | |||
The President is authorized to further delegate to University personnel the authority described as long as such delegation is in writing and a copy is filed in the General Counsel's Office. | |||
This affirmation and authorization is effective as of July 1, 2001. | |||
Resolution | |||
KUFUNIVERSITY of College of Engineering PO Box 11.6134 Uiniversity qf Florida Training Reactor Gainesville, FL 32611-6134 352-294-2104 August 19, 2014 MEMORANDUM TO Decommissioning File _ | |||
FROM: Brian Shea, Reactor Managerr | |||
==SUBJECT:== | ==SUBJECT:== | ||
Annual Estimate of UFTR Decommissioning Cost per 10 CFR 50.75 The estimated cost for the complete decommissioning of the University of Florida Training Reactor (UFTR) as of August 2014 is $4.03 million (CPI-U for July 2014). To meet the requirements of 10 CFR 30.3 and 50.75 the decommissioning cost estimate is updated periodically to reflect any changes. The base cost estimate, in 1982 dollars, is adjusted based on changes in the Consumer Price Index (CPI) and Low Level Waste Disposal Adjustment Factor (Bx).Consumer Price Index Adjustment Factor (Fcpi)Consumer Price Index data can be found online at the US Department of Labor, Bureau of Labor 6 Statistics. | Annual Estimate of UFTR Decommissioning Cost per 10 CFR 50.75 The estimated cost for the complete decommissioning of the University of Florida Training Reactor (UFTR) as of August 2014 is $4.03 million (CPI-U for July 2014). To meet the requirements of 10 CFR 30.3 and 50.75 the decommissioning cost estimate is updated periodically to reflect any changes. The base cost estimate, in 1982 dollars, is adjusted based on changes in the Consumer Price Index (CPI) and Low Level Waste Disposal Adjustment Factor (Bx). | ||
Using the CPIfor all urban consumers, US city average, all items (Base 1982), an adjustment factor of Fcpl,, is calculated by finding the ratio of the current CPI-U to the CPI-U for December 1982 as follows: C | Consumer Price Index Adjustment Factor (Fcpi) | ||
Report on Waste Burial Charges (NUREG-1307, Rev. 15). First, the base is adjusted from 1986 to 1982 as follows: B | Consumer Price Index data can be found online at the US Department of Labor, Bureau of Labor 6 Statistics. Using the CPIfor all urban consumers, US city average, all items (Base 1982), an adjustment factor of Fcpl,, is calculated by finding the ratio of the current CPI-U to the CPI-U for December 1982 as follows: | ||
C PI1 238.25=2.441 C PI Dec1982 97.6 where, x corresponds to the current month and year. | |||
Table 2-1. Values of B, as a Function of LLW Burial Site, Waste Vendor, and Year(a) | Waste Burial Adjustment Factor (FB) | ||
A Waste Burial Adjustment Factor, normalized to 1986 values, is found in Table 2-1 of the U.S. Nuclear Regulatory Commission: Report on Waste Burial Charges (NUREG-1307, Rev. 15). First, the base is adjusted from 1986 to 1982 as follows: | |||
...: .:. : : ..., ..........Compact-, | B 1982 ýnB 1986/(C P IDec1982 1/(976. )=0.883 C P 'Dec1986 97.6 Then the Waste Burial Adjustment Factor for a given year is calculated as follows: | ||
B* 14.160 IF= -X=1.6 = 16.032 B- B 1982 0.883 where, x corresponds to the year of the most recently published adjustment factor The Foundationfor The Gator Nation | |||
Estimated Decommissioning Cost Decommissioning Cost = FB , (1982 Cost of Radioactive Waste disposal) + | |||
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, July 2014[1982-84=100, unless otherwise notedi Relative Unadjusted indexes Unadjusted percent Seasonally adjusted percent impor- change change Expenditure category tance Jul. Jun. Apr. May Jun.Jun. Jul. Jun. Jul. 2013- 2014- 2014- 2014- 2014-2014 2013 2014 2014 Jul. Jul. May Jun. Jul.1 2014 2014 2014 2014 2014 A ll item s ............................................. | Fcpi (1982 Total Cost Estimate - 1982 Cost of Rad Waste Disposal) 14160238 | ||
F o o d .............................................. | .148160 | ||
- | |||
(199,00)+0 25 541,000-199,000)=4"03 | |||
( million Attachments cc: Facility Director (memo only) | |||
.............. | RSRS Members (memo only) | ||
Table 2-1. Values of B, as a Function of LLW Burial Site, Waste Vendor, and Year(a) 8BVal uesi for.,outh CaoiaSt B. Values for Generic LLW B, Valu, for Washington : lteb | |||
'5 ''K Disposal Site1 'l Atlantic Comipact., <1.'iNon-Atlantic Compact~d) | |||
. . .: . :. : : . . . , . . . . . . .. . . | |||
Combinatlionp Combination of Combination of Combination of Compact-, Compact-.. Comnpact-'," Compact. Compact- Compact- ,IICompact-Affiliated ;Affiliated and ~Affiliated" t .Affiliated' and, I;:,Affiliated. Affiliated and" Affiliated'1 'Affilited 'and' Facility Oniy~g) Facility Oniy~q' 'Non-Compact' Fa-cility Only!g)' Non -Cornvact Facility Only ~". act' Non.Cr | |||
<FS'6lg Facilityl' Year PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR 2012 7.335 6.704 7.375 6.076 30.581 27.295 13.885( ý.16ý0 NA NA NA NA 30.581 27.295 13.885 14.160 2010 8.035 7.423 6.588 5.458 27.292 24.356 12.280 12.540 NA NA NA NA 27.292 24.356 12.280 12.540 2008 8.283 23.185 5.153 20.889 25.231 22.504 9.872 11.198 NA NA NA NA 25.231 22.504 9.872 11.198 2006 6.829 11.702 3.855 9.008 22.933 20.451 8.600 9.345 23.030 20.813 8.683 10.206 NA NA NA NA 2004 5.374 13.157 3.846 11.755 19.500 17.389 7.790 8.347 21.937 17.970 7.934 8.863 NA NA NA NA 2002 3.634 14.549 5.748 15.571 17.922 15.988 9.273 8.626 18.732 16.705 9.467 8.860 NA NA NA NA (a) The values shown in this table are developed in APPENDIX B, with all values normalized to the 1986 Washington PWR and BWR values by dividing the calculated burial costs for each site and year by the Washington site burial costs calculated for the year 1986. | |||
......................... | (b) Effective 1/1193, the Washington site no longer accepted waste from outside the Northwest and Rocky Mountain Compacts. | ||
(c) Effective 7/1/2000, rates are based on whether a waste generator is or is not a member of the Atlantic Compact. | |||
(d) Effective 7/1/2008, the South Carolina site no longer accepted waste from outside the Atlantic Compact. | |||
(e) B, values for the generic site are assumed to be the same as that provided for the Atlantic Compact, for lack of a better alternative at this time. | |||
(f) Effective with NUREG-1 307, Revision 8 (Ref. 3), an alternative disposal option was introduced in which the bulk of the LLW is assumed to be dispositioned by waste vendors and/or disposed of at a non-compact disposal facility. | |||
................. | (g) Effective with NUREG-1 307, Revision 15, the nomenclature for the two disposal options, referred to as "Direct Disposal" and 'Direct Disposal with Vendors" in previous revisions of NUREG-1 307, is changed to "Compact-Affiliated Disposal Facility Only" and "Combination of Compact-Affiliated and Non-Compact Disposal Facilities" to better describe these options. | ||
.................... | 4 NUREG-1 307 | ||
Table 24. Historical Consumer Price Index for All Urban Consumers (CPI-U)ý U. S. city average, all items-Continued (1982-84=100, unless otherwise noted) | |||
Year Jan. Feb. Mar. Apr. May June f July Aug. Sep. Oct. Nov. Dec. | |||
1970 37.8 38.0 38.2 38.5 38.6 38.8 39.0 39.0 39.2 39.4 39.6 39.8 1971 39.8 39.9 40.0 40.1 40.3 40.6 40.7 40.8 40.8 40.9 40.9 41.1 1972 41.1 41.3 41.4 41.5 41.6 41.7 41.9 42.0 42.1 42.3 42.4 42.5 1973 42.6 42.9 43.3 43.6 43.9 44.2 44.3 45.1 45.2 45.6 45.9 46.2 1974 46.6 47.2 47.8 48.0 48.6 49.0 49.4 50.0 50.6 51.1 51.5 51.9 1975 52.1 52.5 52.7 52.9 53.2 53.6 54.2 54.3 54.6 54.9 55.3 55.5 1976 55.6 55.8 55.9 56.1 56.5 56.8 57.1 57.4 57.6 57.9 58.0 58.2 1977 58.5 59.1 59.5 60.0 60.3 60.7 61.0 61.2 61.4 61.6 61.9 62.1 1978 82.5 62.9 63.4 63.9 64.5 65.2 65.7 66.0 66.5 67.1 67.4 67.7 1979 68.3 69.1 69.8 70.6 71.5 72.3 73.1 73.8 74.6 75.2 75.9 76.7 1980 77.8 78.9 80.1 81.0 81.8 82.7 82.7 83.3 84.0 84.8 85.5 86.3 1981 87.0 87.9 88.5 89.1 89.8 90.6 91.6 92.3 93.2 93.4 93.7 1982 94.3 94.6 94.5 94.9 95.8 97.0 97.5 97.7 97.9 98.2 98.0 1983 97.8 97.9 97.9 98.6 99.2 99.5 99.9 100.2 100.7 101.0 101.2 101.3 1984 101.9 102.4 102.6 103.1 103.4 103.7 104.1 104.5 105.0 105.3 105.3 105.3 1985 105.5 106.0 106.4 106.9 107.3 107.6 107.8 108.0 108.3 108.7 109.0 109.3 1986 109.6 109.3 108.8 108.6 108.9 109.5 109.5 109.7 110.2 110.3 110.4 110.5 1987 111.2 111.6 112.1 112.7 113.1 113.5 113.8 114.4 115.0 115.3 115.4 115.4 1988 115.7 116.0 116.5 117.1 117.5 118.0 118.5 119.0 119.8 120.2 120.3 120.5 1989 121.1 121.6 122.3 123.1 123.8 124.1 124.4 124.6 125.0 125.6 125.9 126.1 1990 127.4 128.0 128.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 1991 134.6 134.8 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 137.8 137.9 1992 138.1 138.6 139.3 139.5 139.7 140.2 140.5 140.9 141.3 141.8 142.0 141.9 1993 142.6 143.1 143.6 144.0 144.2 144.4 144.4 144.8 145.1 145.7 145.8 145.8 1994 146.2 146.7 147.2 147.4 147.5 148.0 148.4 149.0 149.4 149.5 149.7 149.7 1995 150.3 150.9 151.4 151.9 152.2 152.5 152.5 152.9 153.2 153.7 153.6 153.5 1996 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 1997 159.1 159.6 160.0 160.2 160.1 160.3 160.5 160.8 161.2 161.6 161.5 161.3 1998 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.4 163.6 164.0 164.0 163.9 1999 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 2008 211.080 211.693 2 13.528 214.823 216.632 218.815 219.964 219.086 218.783 2 16.573 212.425 210.228 2009 211. 143 212.193 212.709 213.240 213.856 215.693 215.351 215.834 215.969 216.177 2 16.330 215.949 2010 2 16.687 216. 74 1 217.63 1 218.009 2 18.178 217.965 218.011 218.312 218.439 218.711 218.803 219.179 2011 220.223 221.309 223.467 224.906 225.964 225.722 225.922 226.545 226.889 226.42 1 226.230 225.672 2012 226.665 227.663 229.392 230.085 229.815 229.478 229.104 230.379 231.407 231 .317 230.22 1 229.601 2013 230.280 232.166 232.773 232.53 1 232.945 233.504 233.596 233.877 234.149 233.546 233.069 233.049 2014 233.916 234.78 1 236.293 237.072 237.900 238.343 See footnotes at end of table. | |||
........ | Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, July 2014 | ||
....................... | [1982-84=100, unless otherwise notedi Relative Unadjusted indexes Unadjusted percent Seasonally adjusted percent impor- change change Expenditure category tance Jul. Jun. Apr. May Jun. | ||
Jun. Jul. Jun. Jul. 2013- 2014- 2014- 2014- 2014-2014 2013 2014 2014 Jul. Jul. May Jun. Jul. | |||
1 2014 2014 2014 2014 2014 A ll item s ............................................. 100.000 233.596 238.343 2.0 0.0 0.4 0.3 0.1 F o o d .............................................. 13.837 237.001 242.326 2.5 0.3 0.5 0.1 0.4 Food at home ............................. 8.188 233.591 239.147 239.820 2.7 0.3 0.7 0.0 0.4 Cereals and bakery products ............ 1.122 271.279 270.860 271.993 0.3 0.4 -0.1 -0.2 0.4 Meats, poultry, fish, and eggs ........ '... 1.922 235.859 252.865 253.767 7.6 0.4 1.4 0.2 0.3 Dairy and related products' ...... . . . . . . . . 0.865 215.920 224.522 225.140 4.3 0.3 0.6 -0.4 0.3 Fruits and vegetables ..................... 1.348 287.773 295.139 293.535 2.0 -0.5 1.1 -0.3 0.0 Nonalcoholic beverages and beverage m aterials .................................. 0.928 165.412 164.700 165.211 -0.1 0.3 0.4 0.0 0.5 Other food at home ........................ 2.004 205.872 205.996 207.390 0.7 0.7 0.3 0.1 0.7 Food away from home' ...................... 5.649 243.409 248.445 249.210 2.4 0.3 0.2 0.2 0.3 E ne rgy ............................................ 9.799 251.370 259.858 257.907 2.6 -0.8 0.9 1.6 -0.3 Energy commodities ......................... 5.825 314.380 322.920 318.294 1.2 -1.4 0.6 3.0 -0.3 Fue l o il' ..................................... 0.167 359.780 370.317 367.725 2.2 -0.7 -1.4 -1.7 -0.7 Motor fuel ................................... 5.566 311.757 319.692 314.901 1.0 -1.5 0.8 3.3 -0.3 Gasoline (all types) ................... 5.480 310.886 318.334 313.514 0.8 -1.5 0.7 3.3 -0.3 Energy services 2 ............ . . . . . . . .. . . . . . . . . 3.974 202.087 211.038 211.563 4.7 0.2 1.4 -0.4 -0.4 E lectricity 2 .............. . . . . . . . . . . . . . . . . . . . . 3.084 209,538 217.529 217.930 4.0 0.2 2.3 0.2 -0.3 Utility (piped) gas service2 ....... . . . . . .. . . 0.890 177.356 188.769 189.659 6.9 0.5 -1.7 -2.6 -0.4 All items less food and energy ................ 76.364 233.792 238.157 238.138 1.9 0.0 0.3 0.1 0.1 Commodities less food and energy com m odities ................................ 19.379 146.872 147.087 146,452 -0.3 -0.4 0.1 0.1 0.0 Apparel ...................................... 3.383 124.215 127.302 124.645 0.3 -2.1 0.3 0.5 0.2 New vehicles ............................... 3.487 145.726 146.067 146.086 0.2 0.0 0.2 -0.3 0.3 Used cars and trucks ...................... 1.678 152.554 151.978 152.857 0.2 0.6 -0.1 -0.4 -0.3 Medical care commodities ......... 1.713 334.673 343.224 344.687 3.0 0.4 0.5 0.7 0.3 Alcoholic beverages ....................... 0.990 235.022 236.569 236.387 0.6 -0.1 0.0 -0.1 -0.1 Tobacco and smoking products1 ........ 0.700 881.770 907.216 904.614 2.6 -0.3 0.2 1.0 -0.3 Services less energy services .............. 56.985 286.617 293.668 294.068 2.6 0.1 0.3 0.1 0.1 S helte r ....................................... 31.840 263.451 270.314 271.115 2.9 0.3 0.3 0.2 0.3 Rent of primary residence 2..... . . . . . . . 6.913 267.482 275.321 276.248 3.3 0.3 0.3 0.3 0.3 Owners' equivalent rent of residences' 3 .......................... 23.635 270.537 277.256 277.886 2.7 0.2 0.2 0.2 0.3 Medical care services ..................... 5.813 453.773 464.960 465.166 2.5 0.0 0.3 0.0 0.1 Physicians' services2 ........ . . . . . . . . . . . 1.555 354.775 359.056 358.585 1.1 -0.1 0.4 -0.3 -0.2 Hospital services 2 ,' ..................... 1.800 263.698 278.695 279.587 6.0 0.3 0.3 0.2 0.4 Transportation services ................... 5.589 281.080 289.018 286.239 1.8 -1.0 1.0 0.1 -0.7 Motor vehicle maintenance and repa ir . ......... ....................... 1.138 262.229 265.656 266.282 1.5 0.2 0.2 0.2 0.2 Motor vehicle insurance ................ 2.199 420.073 435.654 436,342 3.9 0.2 0.6 0.2 0.2 Airline fare................... 0.825 315.789 342.697 315.012 -0.2 -8.1 5.8 0.4 -5.9 Not seasonally adjusted. | |||
1Not seasonally adjusted. | |||
2 This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. | |||
3 Indexes on a December 1982=100 base. | |||
................... | 4 Indexes on a December 1996=100 base. | ||
NOTE: Index applies to a month as a whole, not to any specific date. | |||
....................... | IFOR 4folio 41 w4, 8*ft~ | ||
8 # | |||
................ | *. oil | ||
* 4 ,W 4 ma a ft 4A ni 4 -W, U~4 versi'4 8 - | |||
Not seasonally adjusted.1Not seasonally adjusted.2 This index series was calculated using a Laspeyres estimator. | * , 4 '8 - ,R8 | ||
All other item stratum index series were calculated using a geometric means estimator. | . | ||
3 Indexes on a December 1982=100 base.4 Indexes on a December 1996=100 base.NOTE: Index applies to a month as a whole, not to any specific date. | 4 8* 8 - . , . | ||
: its, | |||
its,-, 4 | -, 4 | ||
BIG | DRAM BIG AN AMIIUS 0A | ||
Still, these positive financial trends are already having benefits throughout the University. | |||
This may be most visible in the Preeminence Plan, our effort to rise among the nation's top public universities through advancing UF research and scholarship, At the heart of this plan is our ongoing campaign to hire midcareer and highly accomplished research faculty in areas of particular promise -or who have the potential to elevate current UF strengths to the next level.Un[verý,ity of Floi idi 2013-2014 Annual Financial Report By early November 2014, UF had brought on board 60 of these accomplished new faculty, about half of the University's expected total preeminence hires. Hailing from institutions as diverse as the University of Pennsylvania, UNC-Chapel Hill and Utrecht University in the Netherlands, their expertise ranges from food security to early childhood education to creative writing to archaeology to biomedicine. | As the year draws to a close, the Universityof Floridais on sound financialfooting - well-preparedto move forward while deepening its positive impact on the community, country and world. | ||
W ith the economic downturn in the rearview mirror, the Florida Legislature this spring provided more than $100 million in additional funding to UF. This came on the heels of the Legislature's 2013 restoration of S300 million to State universities' budget cut in the previous year. | |||
UF Online, among the nation's first fully online | What's more, the University broke its annual fundraising record for the second year in a row, netting $215.3 million for the 2013-14 fiscal year. | ||
This effort remains very much a work in progress, with many unknowns, from what types | In the future, we will need to raise our tuition to generate the revenue enjoyed by our peer universities, most of which have far higher tuitions. Still, these positive financial trends are already having benefits throughout the University. | ||
This may be most visible in the Preeminence Plan, our effort to rise among the nation's top public universities through advancing UF research and scholarship, At the heart of this plan is our ongoing campaign to hire midcareer and highly accomplished research faculty in areas of particular promise - or who have the potential to elevate current UF strengths to the next level. | |||
Building on the "What is the Good Life?" class required for all first-year students, UF began piloting two new core classes this fall -the first revolving around climate change; the second, data analysis. | Un[verý,ity of Floi idi | ||
The University expects to begin | |||
-but building a thriving creative community surrounding the University is also central to this goal. | 2013-2014 Annual Financial Report By early November 2014, UF had brought on As a result, UF continued to focus on board 60 of these accomplished new faculty, developing Innovation Square, the public-about half of the University's expected total private partnership created in 2009 to nurture preeminence hires. Hailing from institutions Gainesville's technology community and join as diverse as the University of Pennsylvania, campus with downtown. | ||
UNC-Chapel Hill and Utrecht University in the Among other milestones from the past year: | |||
Netherlands, their expertise ranges from food security to early childhood education to creative Signet Enterprises became the first private writing to archaeology to biomedicine. company to construct a bricks-and-mortar building at Innovation Square. Infinity Hall, With the State continuing to back UF as Florida's to open in September 2015, will house online university, we also broadened our efforts more than 300 entrepreneurially minded in online education. | |||
undergraduates under joint UF-Signet UF Online, among the nation's first fully online management. | |||
- | programs for undergraduates, began its Zeeko joined Curtco Media, Azalea Health, first full academic year in fall 2014. It has 11 BioMonde, Mobiquity and Mindtree among undergraduate degree programs, including the outside technology companies that biology, geology and sports management. | ||
have opened facilities in Innovation Square, This effort remains very much a work in Together, these companies have created progress, with many unknowns, from what types more than 300 jobs. Many are both high-of students will find online education appealing paying and high-skill positions. | |||
to what programs will prove most popular. But | |||
* More than two dozen spinoffs filled there is no question that online education offers the Florida Innovation Hub technology unique opportunities to grow UF's enrollment incubator, while companies that outgrew the and extend P college education to those who........ | |||
Hub continued to expand in other locations cannot come to our campus. | |||
around Gainesville. | |||
A third area.of advancement came with the I will step down in December after serving as continued development of the core curriculum UF's president for 11 years. While we have faced for undergraduates. | |||
our share of financial challenges, especially Building on the "What is the Good Life?" class durin~the downturn, I feel optimistic about. | |||
required for all first-year students, UF began our current position and our path ahead. With piloting two new core classes this fall - the first adequate resources, there is no limit to what revolving around climate change; the second, our faculty can achieve in'education, research data analysis. The University expects to begin and scholarship - changing students' lives and offering thesescourses to all undergraduates helping to bring.prosperity, understanding next year, taking another step toward a and equity to the world. It's a great time to signature undergraduate program that is both be a Gator, and I wish the University and the unique to UF and shared among all students. community the very best!. | |||
The Preeminence Plan, UF Online and the core curriculum will all help to raise UF's profile among its peer universities - but building a thriving creative community surrounding the J. Bernard Machen University is also central to this goal. President, University of Florida | |||
Knowledge by the Numbers College/Scool 2013 2012 2011 2010 2009 Accounting 889 857 865 905 871 Agricultural and Life Sciences 4,828 4,835 4,955 4,940 4,640 Building Construction 345 383 391 499 581 Business Administration 5,396 4,985 .4,681 4,728 4,947 Dentistry 402 385 389 378 379 Design, Construction, and Planning 883 855 896 899 899 Division of Continuing Education (A) 113 141 179 215 259 Education 1,577 1,732 ,1,749 1,88613 1,919 Engineering 8,774 8,716 8,454 8,240 7,880 Fine Arts 1,322 1,294 1,256 1,309 1,284 Forest Resources and Conservation - - - - 222 Health and Human Performance 1,979. 1,973 2,047 2,008 1,908 High School 71. 57 52 47 44 Interdisciplinary Ecology 101 104 116 127 135 Journalism and Communications 2,710 2,693 2,540 2,516 2,663 Law 1,071 1,105 1,118 1,191 1,263 Liberal Arts and Sciences 12,221 12,514 12,673 12,817 13,368 Medicine 806 823 '862 853 967 Multiple-College Program 2 1 1 2 Natural Resources and Environment 107 120 155 154 158 Nursing 1,045 1,162 1,170 1,090 1,188 Pharmacy 850 847 823 836 761 Pharmacy Doctor 1,545 1,584 1,686 1,752. 1,891 Physician Assistant Program 121 119 119 119 119 Public Health & Health Professions 2,315 2,213 2,122 2,139 1,971 Veterinary Medicine 674 648 542 530 525 SUB-TOTAL 50,147 50,145 49,841 50,179 50,844 Minus Concurrent Degree 52 59 56 63 60 TOTAL 50,095 50,086 49,785 50,116 50,784 (A)Includes Continuing Education and correspondence courses for students not enrolled ina college. | |||
Source: UF Facts - UF Office of Institutional Planning and Research Dge . j0012011 2,44(5" 2009.10 Degree 2013-14 2012-13 2011-12 2010-11 2009-10 Bachelor's 8,515 8,245 8,600 8,685 9,302 Master's 4,174 3,929 3,924 3,878 3,751 Doctor of Philosophy 950 880 859 936 957 Doctor of Pharmacy 430 427 461 484 483 Juris Doctor 304 361 334 410 377 Doctor of Medicine 129 131 134 127 130 Doctor of Dental Medicine 83 79 82 83 91 Doctor of Veterinary Medicine 98 86 84 87 89 Specialist in Education 73 | |||
............... 88 71 2 .1..5........... . | |||
1........4...... 70 | |||
. ................ 111 7 0 ................ | |||
10,56 14,226 14,549 14,760 15,291 TOTAL Source: Final degree information from the Degrees Awarded File - UF Office of Institutional Planning and Research 6 . | |||
ofFord 0nvrst | |||
2013-2014 Annual Financial Report In-State Enrollment by County - Fall 2013 Total In-State Enrollment: | |||
40468 Pese rch Awards by Spons 1% | |||
for 203-14 tisca E $465,296,894 Federal Agencies EFlorida State Agencies | |||
$44,842,935 Corporations & Companies | |||
$72,150,763 EFoundations | |||
$86,071,558 | |||
& Non-Profits Local & Regional S $7,232,063 E $26,102,832 All Other Sources Total | |||
$701,697,045 Visit Gator~oootutl.eiu to learn about the issues we're tackling: | |||
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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. | .C~ | ||
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A Component Unit of the State of Florida 1 7 | |||
Introductionfrom the Vice President and Chief FinancialOfficer am pleased to present the University of Florida Austin Cary Learning Center, replacing the Austin Annual Financial Report for the fiscal year Cary Conference Center that burned down in ended June 30, 2014. This report provides useful 2011. Other construction projects completed information concerning the University's financial during the 2013-14 fiscal year included the position and activities for the year. The University Government House Renovation and Museum had a strong financial year as evidenced by a Exhibit projects located in historic St. Augustine. | |||
net position of more than $2.49 billion, a 5.1% | |||
Designed for undergraduate students and increase when compared to the 2012-13 fiscal students with disabilities, Cypress Hall, a new year. Management's Discussion and A:nalysis, financial statements, and notes to the financial single student residence building, is expected statements document the University's financial to be substantially complete in April 2015. The University's 25th residence hall, will add 255 success and health for this fiscal year. | |||
bed spaces with rooms on the first floor to During the 2013-14 fiscal year, Noncapital State accommodate students with significant mobility Appropriations increased by 24.8%/, or $120.4 impairments. | |||
million with $30 million received to advance the goal of reaching national preeminence and to On June 2, 2014, Governor Scott signed the State University System budget for the 2014-15 fiscal implement the State's online university program. | |||
Tuition revenue increased a modest $6.3 million, year. This budget includes a significant increase in funding for higher education - including $200 or 1.8% for the fiscal year. The University continues to have one of the lowest costs of million for performance funding, of which the attendance of all public research universities University of Florida will receive $39.8 million. | |||
nationwide and continues to be an excellent value The investment in performance funding marks the first time such a significant portion of for the investment. | |||
funding has been directed toward rewarding Capital State Appropriations totaled $43.6 million, excellence and improvement. The budget also a S34.1million increase over the prior fiscal year ,includes nearly $16 million for the UF.Health of S9.5 million. The increase in Capital State, Cancer Center to support an effort to obtain Appropriations provided needed funds to address the National Cancer Institute (NCI) designation. | |||
a number of deferred maintenance projects and We are encouraged by this additional funding to enable the University to continue to maintain its obtain the NCI designation and to help our State beautiful and historic campus. become a national lediaer in cancer tare. | |||
Heavener Hall, completed in November 2014, The Office of the Vice President and Chief houses; for the first time, the undergraduate Financial Officer is committed to effectively program of the Warrington College of Business .manage the Universitys assets and facilitate the under one roof and provides 24/7 access for comprehensive business needs as the University its students. .This 57,000 square foot building rises to being a top ten public research university. | |||
*features state-of-the~art technology, study rooms. and professional development centers. | |||
The Heavener Hall project also allowed for the creation of anew, more prominent and pedestrian-friendly gateway into the University. | |||
Michael V. McKee Of special note, April 5,.2014, marked the Interim Vice President and dedication and celebration of the newly built. Chief Financial Officer | |||
AUDITOR GENERAL STATE OF FLORIDA DAVID W. MARTIN, CPA G74 Claude Pepper Building PHONE: 850-412-2722 AUDITOR GENERAL 111 West Madison Street FAx: 850-488-6975 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 Report on the Financial Statements We have audited the accompanying 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, 2014, 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'sResponsibility 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 preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. | |||
Auditor's Responsibility 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. The financial statements of the University of Florida Self-Insurance Program and the University of Florida Healthcare Education Insurance Company, blended component units, represent 5.7 percent, 5.6 percent, and 1.1 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 the blended and the aggregate discretely presented component units 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, are 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 GoernienItAuditing 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. | |||
10 1 University of Florida | |||
2013-2014 Annual Financial Report Opinions In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented component units as of June 30, 2014, 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 2012-13 fiscal year financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 20, 2013. In our opinion, the partial comparative information presented herein as of and for the fiscal year ended June 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived. | |||
Other Matters RequiredSupp/ementaO, Injbriation Accounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSION AND ANALYSIS and SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS PLAN, as listed in the table of contents, be presented to supplement tie 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, which 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. | |||
0/her 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 University of Florida Overview, President's Message, Knowledge by the Numbers, Introduction from the Vice President and Chief Financial Officer, and 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 University of Florida Overview, President's Message, Knowledge by the Numbers, Introduction from the Vice President and Chief Financial Officer, and Supplemental Information for Financial Aid Administered have 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 them. | |||
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 GOVERNMENTAUDITING 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 Government Auditing Standards in considering the University of Florida's internal control over financial reporting and compliance. | That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University of Florida's internal control over financial reporting and compliance. | ||
Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 16, 2014 Audit Report No. 2015-074 A Component Unit of the State of Florida 1 11 MANAGEMENT'S DISCUSSION AND ANALYSIS From the Vice | Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 16, 2014 Audit Report No. 2015-074 A Component Unit of the State of Florida 1 11 | ||
-and | |||
MANAGEMENT'S DISCUSSION AND ANALYSIS From the Vice Presidentand Chief FinancialOfficer Introduction And Background Financial Highlights The Management's Discussion and Analysis (MD&A) provides The University's assets totaled $3.2 billion at June 30, 2014. | |||
an overview of the financial position and activities of the This balance reflects a $201.5 million, or 6.6%, increase University of Florida (the University) for the fiscal year ended from the 2012-13 fiscal year. The increase in assets resulted June 30, 2014, and should be read in conjunction with the primarily from a significant increase in construction projects financial statements and notes thereto. This overview is as well as temporary investments of proceeds from new required by Governmental Accounting Standards Board bonds. While total assets increased, liabilities also increased (GASB) Statement No. 35, Basic FinancialStatements - and by $81.7 million or 12.2%, totaling $754.0 million at June 30, Management's Discussion and Analysis - for Public Colleges 2014, primarily as a result of a $62.2 million increase in Capital and Universities, as amended by GASB Statements Nos. Improvement Debt Payable and a $40.9 million increase in 37 and 38. The MD&A, and financial statements and notes Other Postemployment Benefits Payable. The University's thereto, are the responsibility of University management. net position increased by $119.8 million, or 5.1%, resulting in 12 1 University of Florida | |||
$ | 2013-2014 Annual Financial Report a year-end balance of $2.49 billion. Net position represents Net nonoperating revenues and expenses in the 2013-the residual interest in the University's assets after deducting 14 fiscal year increased $167.4 million. Noncapital State liabilities. The University's comparative total net position by Appropriations; Investment Income, Net of Expenses; and category for the fiscal years ended June 30, 2014, and 2013, Fair Value of Investments increased by $163.3 million due are shown in the following chart: to increased appropriations and an improving investment market. | ||
$ | $1,565 $1,554 The University had significant construction activity during | ||
$1,600 the year. Construction began or continues on several major projects, including four that, when completed, will be capitalized at over $203.4 million: (1) Reitz Union Expansion | |||
$1,200 and Renovation; (2) Chemical Biology Building - Chemistry; (3) | |||
Harrell Medical Education Building; and (4) Heavener Hall - | |||
$775 $695 School of Business Building. | |||
$800 | |||
$400 Overview Of Financial~ | |||
$149 $119 tatementb | |||
$0 Pursuant to GASB Statement No. 35, the University's financial Net Investment in Restricted Unrestricted report includes three basic financial statements: the Statement Capital Assets of Net Position; the Statement of Revenues, Expenses, and Changes in Net Position; and the Statement of Cash Flows. | |||
($ | The University's operating revenues totaled $1.7 billion for the The financial statements and notes thereto, encompass the 2013-14 fiscal year, representing a 2.5% increase over the University and its component units. | ||
2012-13 fiscal year. Major components of operating revenues Based upon the application of criteria for determining are Student Tuition and Fees and Grants and Contracts. While component units, the University of Florida Self-Insurance Student Tuition and Fees, Net of Scholarship Allowances, Program (the Program), and the University of Florida increased $6.3 million or 1.8%, Nongovernmental Grants Healthcare Education Insurance Company (HEIC), are and Contracts revenue increased by $61.1 million, or 9.5%, | |||
included within the University reporting entity as blended because of increased transfers from the component units. | |||
component units. Additional information regarding the The following chart provides a graphical presentation of the blended component units is presented in Notes 1 and 19 to University's total revenues by category for the 2013-14 fiscal the financial statements. | |||
The changes in net position that occur over time indicate improvement or deterioration in the University's | year: | ||
The following table summarizes the University's assets, liabilities, and net position at June 30: | In addition, the University's basic financial statements include discretely presented component units categorized as follows: | ||
Direct-Support Organizations - These are separate, not-for-profit corporations organized and operated exclusively to assist the University in achieving excellence by providing supplemental resources from private gifts, bequests, and valuable education support services. | |||
Operating | Health Science Center Affiliates - These are the several corporations closely affiliated with the University of Florida J. Hillis Miller Health Science Center, including the Faculty Practice Plans. | ||
Shands Hospital and Others - This includes Shands Teaching Hospital and Clinics, Inc., a not-for-profit corporation that is contractually obligated to manage, operate, maintain, and insure the hospital facilities in support of the programs of the Operating expenses totaled $2.5 billion for the 2013-14 fiscal Health Science Center at the University of Florida. | |||
year, representing a $109.3 million or 4.7% increase compared to the 2012-13 fiscal year. The two largest categories Information regarding the discretely presented component contributing to this increase were Employee Compensation units, including summaries of their separately issued financial and Benefits, reflecting the increase in Other Postemployment statements, is presented in Notes 1, 2, 3, 6,9, 12, and 19 to the Benefits Payable, and Services and Supplies. financial statements. This MD&A focuses on the University, A Component Unit of the State of Florida 13 | |||
MD&A excluding the discretely presented component units. MD&A activity, categorized as operating and nonoperating. Revenues information regarding the component units is included in and expenses are recognized when earned or incurred, their separately issued audit reports, if reporting under regardless of when cash is received or paid. The following GASB standards. Component units reporting under Financial table summarizes the University's activity for the 2013-14 and Accounting Standards Board (FASB) standards do not include 2012-13 fiscal years: | |||
an MD&A in their audit reports. | |||
The financial statements characterize revenues and expenses as either operating or nonoperating. The principal component of operating revenues is Grants and Contracts ($1.1 billion). 2013-14 2012-13 The principal component of operating expenses is Employee Operating Revenues $ 1,659.9 $ 1,618.8 Compensation and Benefits ($1.7 billion). A significant portion of Operating Expenses J2,455.91, (2,346.6) the University's anticipated, recurring resources is considered nonoperating as defined by GASB Statement No. 35. The Operating Loss (796.0) (727.8) principal component of nonoperating revenues for the fiscal Net Nonoperating Revenues 854.5 687.1 year ended June 30, 2014, is Noncapital State Appropriations | |||
($605.9 million). Recurring nonoperating expenses consist Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 58.5 (40.7) primarily of Interest on Capital Asset-Related Debt. | |||
Cash | Other Revenues, Expenses, Gains, or Losses 61.3 23.4 (17.3) | ||
Statement Of Net Position Increase (Decrease) in Net Position 119.8 The Statement of Net Position reflects the assets and liabilities Net'Position, Beginning of Year 2,369.0 2,386.3 of the University, using the accrual basis of accounting, and Net Position, End of Year $ 2,488.8 $ 2,369.0 presents the financial position of the University at a specified time. Net position, the difference between total assets and total liabilities, is one indicator of the University's current financial condition. The changes in net position that occur over Operating Revenues time indicate improvement or deterioration in the University's GASB Statement No. 35 categorizes revenues as either financial condition. The following table summarizes the operating or nonoperating. Operating revenues generally University's assets, liabilities, and net position at June 30: | |||
result from exchange transactions where each of the parties to the transaction either gives or receives something of equal or similar value. The following table summarizes the operating revenues by source that were used to fund operating activities 2014 2013 during the 2013-14 and 2012-13 fiscal years: | |||
Assets: | |||
Current Assets $ 1,338.5 $ 1,213.4 Capital Assets, Net 1,714.7 1,686.3 Other Noncurrent Assets 189.6 141.6 Total Assets _ 3,041.3 2013-14 2012-13 Liabilities: | |||
Current Liabilities 214.9 244.1 Grants and Contracts $ 1,115.7 $ 1,079.9 Noncurrent Liabilities 539.1 428.2 Student Tuition and Fees, Net of Total Liabilities 754.-0 672.3 Scholarship Allowances 358.7 352.4 Sales and Services of Auxiliary Enterprises 129.9 131.4 Net Position: Sales and Services of Net Investment in Capital Assets 1,565.3 1,554.4 Educational Departments 52.0 51.6 Restricted 774.9 695.3 Other 3.6 3.5 Unrestricted 148.6 119.3 Total Operating Revenues $ 1,659.9 $ 1,618.8 Total Net Position $ 2,488.8 $ 2,369.0 Statement Of Revenues, Operating Expenses Expenses are categorized as operating or nonoperating. The Expenses, And Changes majority of the University's expenses are operating expenses in Net Positio n as defined by GASB Statement No. 35. GASB gives financial reporting entities the choice of reporting operating expenses in The Statement of Revenues, Expenses, and Changes in Net the functional or the natural classifications. The University has Position presents the University's revenue and expense chosen to report the expenses in their natural classifications 14 University of Florida | |||
14 wt; POW lp | |||
$ | 2013-2014 Annual Financial Report on the Statement of Revenues, Expenses, and Changes in Net Position and has displayed the functional classifications below No openat4"g Revenues and in the notes to the financial statements. The following And Expe 3ses table summarizes the operatina expenses for each method of Certain revenue sources that the University relies on to classification for the 2013-14 and 2012-: L3 fiscal years: | ||
provide funding for operations, including Noncapital State Appropriations, certain gifts and grants, and investment income, are defined by GASB as nonoperating. Nonoperating Natural Classifications 2M13414 2012-13 expenses include capital financing costs, other costs related to capital assets, and transfers to component units. | |||
Employee Compensation and Benefits $ 1,724.9 $ 1,619.9 Services and Supplies 472.5 480.8 The University experienced an increase in State Appropriations Depreciation 123. 121.4 revenue and investment income, while interest on capital Scholarships, Fellowships and Waivers | |||
* 78.4 82.0 Utilities and Communications 62.8 64.7 asset-related debt increased. Noncapital Grants, Contracts, Self-Insured Claims and Expenses (5.8) (2.2) and Gifts decreased slightly and the net effect of these changes | |||
$ 2,455.9 $ Z increased net nonoperating revenues by $167.4 million. The Total Operating Expenses | |||
. - following summarizes the University's nonoperating revenues and expenses for the 2013-14 and 2012-13 fiscal years: | |||
Functional Classifications 201344 2012-13 Instruction S 686.8 $ 650.9 Research 584.7 582.4 Public Service 432.1 429.1 2013-14 2012-13 Academic Support 167.2 154.3 Institutional Support 162.3 130.6 S 605.9 123.1 121.4 Noncapital State Appropriations $ 485.5 Depreciation Federal and State Student Financial Aid 117.0 114.1 Auxiliary Operations 112.3 108.6 Noncapital Grants, Contracts, and Gifts 82.0 84.1 Operation and Maintenance of Plant 94.9 96.5 Investment Income, Net of Expenses 33.9 19.2 Scholarships, Fellowships and Waivers | |||
DEBT ADMINISTRATION At June 30, 2014, the University had $199.4 million in outstanding Capital Improvement Debt Payable, Loans and Notes Payable, Capital Leases Payable, and Installment | * 56.7 57.1 Increase in Fair Market Value of Investments 32.5 4.3 Student Services 35.8 35.7 Loss on Disposal of Capital Assets (2.) (39) | ||
Interest on Capital Asset-Related Debt (8.0) (6.1) | |||
Total Operating Expenses $ 2,4A59 $ Z346.6 Other Net Nonoperating Expenses (6.1) (10.1) | |||
* Net of Scholarship Allowances of $149.8 million in the 2073-14 fiscal year Net Nonoperating Revenues $ H%5 $ 687.1 and$148.1 million in the 2012-13 fiscalyear. | |||
MD&A activities of the University. Cash flows from capital and related Other Revenues, Expenses, financing activities include activities of the capital funds and Gains, Or Losses related long-term debt. Cash flows from investing activities reflect the net source and use of cash related to the purchases This category is composed of Capital State Appropriations and sales of investments and income earned on those and Capital Grants, Contracts, Donations, and Student Fees. investments. Cash flows from noncapital financing activities The University received more in both of these categories include those activities not covered in the other sections. | |||
due to increases in State construction budgets and other capital gifts. The following summariz es the University's other Major sources of funds came from Noncapital State revenues, expenses, gains, or losse's for the 2013-14 and Appropriations ($605.9 million), Student Tuition and Fees, Net 2012-13 fiscal years: ($361.7 million), Grants and Contracts ($1,113.8 million), and Sales and Services of Auxiliary Enterprises ($130.7 million). | |||
Major uses of funds were for Payments to Employees ($1,666.5 million), Payments to Suppliers for Goods and Services 2013-14 2012-13 ($543.9 million), and the Purchase or Construction of Capital Assets ($145.1 million). The following table summarizes cash Capital State Appropriations $ 43.6 $ 9. flows for the 2013-14 and 2012-13 fiscal years: | |||
Capital Grants, Contracts, Donations, and Student Fees 17.7 13.9 Total Other Revenues, Expenses, Gains, or Losses $ 613 $ 23.4 Cash Provided (Used) by: | |||
Operating Activities $ (633.0) $ (557.0) | |||
Noncapital Financing Activities 770.0 734.3 Capital and Related Financing Activities (58.3) (112.6) | |||
Investing Activities (78.8) (49 Statement Of Cash Flows Net Decrease in Cash and The Statement of Cash Flows provides information about the Cash Equivalents (0W1) (02) | |||
University's financial results by reporting the major sources and uses of Cash and Cash Equivalents. This statement will Cash and Cash Equivalents, Beginning of Year 03 0,5 assist in evaluating the University's ability to generate net cash flows, its ability to meet its financial obligations as they Cash and Cash Equivalents, come due, and its need for external financing. Cash flows from End of Year $ 02 $ 03 operating activities reflect the net cash used by the operating | |||
2013-2014 Annual Financial Report Capital Assets, Capital Expenses Anre Com itments, "2014 2013 And Debt Administration Capital Improvement Debt $ 181.6 $ 119.4 Loans and Notes 11.5 5.0 Installment Purchase Agreements 3.4 1.6 CAPITAL ASSETS Capital Leases 2.9 3.1 At June 30, 2014, the University had approximately S3.4 Total Capital Asset-Related Debt $ 199.4 $ 129.1 billion in capital assets, less accumulated depreciation of Additionalinformation about the University's capital asset-relateddebt is | |||
$1.7 billion, for net capital assets of $1.7 billion. Depreciation presentedin Note 12 to the financialstatements. | |||
charges for the current fiscal year totaled $123.1 million. The following table summarizes the University's capital assets, net of accumulated depreciation, at June 30: | |||
Econormic Factors Th-t Will 2014 2013 The recovery in the national economy is well underway and Land $ 11.3 $ 10.8 the State's growth rates are returning to more typical levels Buildings 1,277.0 1,339.5 Infrastructure and Other Improvements 46.1 and continue to show progress. By the close of the 2013-14 47.0 Furniture and Equipment 182.9 .185.1 fiscal year, several key measures of the Florida economy had Library Resources 53.9 56.4 returned to or surpassed their prior peaks. These favorable Property Under Capital Lease and Leasehold Improvements economic outlooks are echoed in the State budget for the 7.9 6.0 Other Capital Assets 4.3 4.2 coming fiscal year which includes more than $100 million Construction in Progress 130.4 38.2 in new funding for the University of Florida. This reflects an Total Capital Assets (Nondepreciable extraordinary level of support from the Legislature and the and Depreciable, Net) $ 1,714.7 $ 1,686.3 Governor for the University of Florida and the goal to become one of the nation's top ten public research universities. | |||
Additionalinformation about the University's capitalassets is presented in Note 8 to the financialstatements. The budget for the 2014-15 fiscal year includes an additional | |||
$25.9 million in recurring dollars for meeting the performance CAPITAL EXPENSES AND COMMITMENTS metrics developed by the Board of Governors. An additional | |||
$5 million was added to the preeminence initiative, bringing Major capital expenses were incurred on the following ongoing the total to $20 million per year. In addition, the budget projects for the fiscal year ending June 30, 2014: Reitz includes approximately $16 million for the UF Health Cancer Union Expansion and Renovation ($18.7 million); Heavener Center to support an effort to obtain the National Cancer Hall - School of Business ($13.2 million); and Harrell Medical Institute (NCI) designation. The NCI designation will provide Education Building (S8.3 million). | |||
additional State and Federal funding and access to more The University's construction commitments at June 30, 2014, clinical trials. Major Capital State Appropriations include $20 are as follows: million to complete a new chemistry building; $13.5 million for facilities maintenance and repairs, with another S3 million for critical deferred maintenance; and $10 million to renovate the historic Newell Hall into a student study center. | |||
Amount The 2014-15 fiscal year budget provides the University with Total Commitments $ 402.5 the resources necessary to continue the advance to the top Completed to Date 130.4 ten public research universities, serve the State of Florida, and Balance Committed $ 272.1 address critical facility needs on campus. | |||
Additional information aboutthe University's capitalconstructioncommitments is presented in Note 15 to the financial statements. | |||
Request.s For Informat-ion DEBT ADMINISTRATION Questions concerning information provided in the MD&A or other required supplementary information, and financial At June 30, 2014, the University had $199.4 million in outstanding Capital Improvement Debt Payable, Loans and statements and notes thereto, or requests for additional financial information should be addressed to the Office of Notes Payable, Capital Leases Payable, and Installment the University Controller, P.O. Box 113200, Gainesville, Florida Purchase Agreements Payable, representing an increase of 32611. | |||
$70.3 million, or 54.5%, from the prior fiscal year. The following table summarizes the outstanding capital asset-related debt by type of debt at June 30: A Component Unit of the State of Florida 1 17 | |||
University of Florida Component Units Direct-Support Health Science Shands Hospital 20114 2013 Organizations Center Affiliates and Others ASSETS Current Assets Cash and Cash Equivalents (Note 1) $ 152 $ 285 $ 26,604 $ 55,716 $ 60,944 Investments (Note 3) 1,161,021 1,071,694 192,289 6,218 176,322 Accounts Receivable, Net (Note 4) 96,630 90,802 112,858 83,406 263,318 Loans and Notes Receivable, Net (Note 4) 2,787 2,821 Due From State (Note 5) 45,977 14,795 15,781 Due From Component Units/University (Note 6) 25,138 26,503 46,538 16,170 60,318 Inventories (Note 7) 4,690 4,570 42 24,446 Other Current Assets 2,130 1,964 6,197 2,495 40,558 Total Current Assets 1,338,25 1213,434 384,526 164,005 641,687 Noncurrent Assets: | |||
Restricted Cash and Cash Equivalents (Note 1) 14 21 9,681 19,500 Restricted Investments (Note 3) 152,510 104,053 1,829,863 19,513 343,685 Loans and Notes Receivable, Net (Note 4) 36,975 36,375 Depreciable Capital Assets, Net (Note 8) 1,568,905 1,633,266 178,725 59,745 768,822 Nondepreciable Capital Assets (Note 8) 145,860 53,072 77,624 8,744 130,554 Other Noncurrent Assets 1,040 108 4,745 218,550 Total Noncurrent Assets 1,904,327 1,827,827 Z096.001 92,747 1,481,111 TOTAL ASSETS 3,242,852 3,041,261 2,480,529 256,752 2,122,798 DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Interest Rate Swap Agreements 42,052 Losses on Debt Refunding 631 42,683 TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,165,481 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 3242,852 $ 3,041261 $ 2,480,529 $ 256,752 $ | |||
UABIUTIES Current Liabilities: | |||
Accounts Payable $ 64,133 $ 66,992 $ 14,429 $ 20,386 $ 152,584 Salaries and Wages Payable 24,304 19,252 3,850 7,090 71,141 Due To Component Units/University (Note 6) 46,547 80,174 66,598 12,827 47,471 Unearned Revenue (Note 10) 29,536 25,430 62,014 1,704 Deposits Held in Custody 19,055 16,086 81 Other Current Liabilities (Note 11) 201 7,133 2,885 Long-Term Liabilities - Current Portion: (Note 12) | |||
Capital Improvement Debt Payable 8,605 7,307 Bonds Payable 10,580 2,011 23,687 Loans and Notes Payable 281 14,430 Installment Purchase Agreements Payable 1,263 846 Capital Leases Payable 137 129 244 193 2,339 Compensated Absences Payable 11,658 9,143 Liability for Self-Insured Claims 9,196 11,596 26,240 Total Current Uabilities 214,916 244,088 201,270 44292 297222 18 1 University of Florida | |||
University of Florida Component Units Direct-Support Health Science Shands Hospital 2014 2013 Organizations Center Affiliates and Others Noncurrent Liabilities: (Note 12) | |||
Capital Improvement Debt Payable $ 172,974 $ 112,094 $ 80,630 $ S Bonds Payable 33,036 672,205 Loans and Notes Payable 11,192 5,000 1,472 8,000 Installment Purchase Agreements Payable 2,097 772 Capital Leases Payable 2,810 2,947 349 5,260 Compensated Absences Payable 114,293 104,305 3,119 Other Postemployment Benefits Payable 180,690 139,775 2,386 Liability for Self-Insured Claims 36,606 44,551 Other Noncurrent Liabilities 18,482 18,768 22,392 Total Noncurrent Liabilities 539,144 43.212 107,613 41*35 7500A9 TOTAL LIABILITIES 754,060 672,300 306,883 5,677 1,018,101 DEFERRED INFLOWS OF RESOURCES Gains on Debt Refunding 11,668 TOTAL UABILITIES AND DEFERRED INFLOWS OF RESOURCES 754,060 672300 85.677 1,059,769 NET POSITION Net Investment inCapital Assets 1,565,313 1,554,445 117,560 24,901 195,225 Restricted: | |||
Nonexpendable: | Nonexpendable: | ||
Endowment 1,196,686 97 Expendable: | |||
Endowment 380,075 11,931 Loans 36,317 35,853 Capital Projects 79,294 64,217 Debt Service 4,433 5,453 326,610 Other 654,866 589,690 Unrestricted 119,303 -- 15071,5 146,174 898,459 1488,792 TOTAL NET POSION 2,368,961 Z.171,646 171,075 1,105,712 TOTAL UABIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION 3,2424Z52 $ 3,041,261 $ 2Z480,529 $ 256,752 $ 2Z165,481 The accompanyingnotes are an integralpartof these financial statements. | |||
A Component Unit of the State | |||
University management considers these to be fully collectible. | University management considers these to be fully collectible. | ||
DUe From State This amount consists of S45,976,604 of Public Education Capital Outlay due from the State to the University for | A. ACCOUNTS RECEIVABLE Accounts receivable represent amounts for grant and DUe From State contract reimbursements due from third parties, various sales and services provided to students and third parties, student tuition and fees, and interest accrued on investments and This amount consists of S45,976,604 of Public Education loans receivable. Accounts receivable, net of an allowance Capital Outlay due from the State to the University for for uncollectible accounts, reported as of June 30, 2014, are construction of University facilities. | ||
A Component Unit of the State of Florida 29 Notes Due From And To Component U ~/ | summarized in Table 8. | ||
A Component Unit of the State of Florida 29 | |||
Inventories | |||
Notes Departmental Inventories - Those inventories maintained Due From And To Component Uifts/ | |||
U ~/Uinivoersity v~~ | |||
by departments and not available for resale. Departmental inventories are comprised of such items as classroom and laboratory supplies, teaching materials, and office supply The University's financial statements are reported for the items, which are consumed in the teaching and work process. | |||
fiscal year ended June 30, 2014. The University's discretely These inventories are normally expensed when purchased and presented component units' financial statements are reported therefore are not reported on the Statement of Net Position. | |||
$ 962,637 $ 11,278,599 | for the most recent fiscal year for which an audit report is Merchandise Inventories - Those inventories maintained available. Some component units are not presented (see which are available for resale to individuals and other Note 1). Additionally, component units' due from and due to University departments, and are not expensed at the time of amounts include receivables and payables between the various purchase. These inventories are reported on the Statement of component unit columns. Accordingly, amounts reported Net Position and are valued at cost using either the moving by the University as due from and to component units on average method or the first-in, first-out method. | ||
Buildings Infrastructure and Other Improvements | the Statement of Net Position may not agree with amounts reported by the component units as due from and to the University. | ||
: Capital Assets Inventories Capital assets activity for the fiscal year ended June 30, 2014, is presented in Table 9. | |||
Inventories have been categorized into the following two types: | |||
........ ......... | j ........ | ||
. | Beginning Ending Description Balance Additions Reductions Balance Nondepreciable Capital Assets: | ||
Land $ 10,841,236 $. 1,400,000 $ 962,637 $ 11,278,599 Construction in Progress 38,219,651. 108,923,437 16,701,755 130,441,333 Works of Art and Historical Treasures 4,011,284 129,060 4,140,344 Total Nondepreciable Capital Assets 53,072,171 110,452,497 17,664,392 145,860276 Depreciable Capital Assets: | |||
Buildings 2,284,054,228 9,630,734 1,597,861 2,292,087,101 Infrastructure and Other Improvements 108,260,867 4,893,655 235,476 112,919,046 Furniture and Equipment 534,362,432 37,515,040 21,177,965 550,699,507 | |||
.Library Resources 314,817,433 8,875,867 1,935,770 321,757,530 Property Under Capital Lease and Leasehold Improvements 9,815,002 2,325,636 12,140,638 Works of Art and Historical Treasures 419,695 13,200 432,895 Computer Software 24,533,000 24,533,000 Other Capital Assets 9,500 45,610 55,110 Total Depreciable Capital Assets 3,276,272,157 63,299,742 24,947,072 3,314,624,827 Less Accumulated Depreciation: | |||
Buildings 944,552,425 71,721,401 1,155,462 1,015,118,364 Infrastructure and Other Improvements 62,177,410 3,941,225 235,476 65,883,159 Furniture and Equipment 349,233,846 35,620,523 17,060,078 367,794,291 Library Resources 258,372,911 * :11,414,070 1,935,770 267,851,211 Property Under Capital Lease and Leasehold Improvements 3,863,574 385,126 4,248,700 Works of Art and Historical Treasures, 268,736 24,991 13,400 280,327 Computer Software 24,533,000 24,533,000 Other Capital Assets 4,117 6,961 11,078 Total Accumulated Depreciation 1,643,006,019 ........ | |||
......... | |||
.2* | |||
.......... | |||
123,114,297 20,400,186 1,745,720,130 | |||
....... ....... .............. = | |||
$ | ... .I.. | ||
Total Depreciable Capital Assets, Net 1,633,266,138 (59,814,555) 4,546,986 1,568,904,697 Total Capital Assets, Net $ 1,686,,309 $ 50,637,942 $ 22,1127 $ 1,714,764,973 30 1 University of Florida | |||
2013-2014 Annual Financial Report Museum, And Art Description Amount The Florida Museum of Natural History, which is part of the University, maintains a depository of biological, geological, Grants and Contracts $ 18,841,720 Sales and Services of Auxiliary Enterprises 6,963,312 archaeological, and ethnographic materials. The Museum's Student Tuition and Fees 3,730,503 collections contain approximately 32 million specimens, more than half of which are catalogued, either individually or Total Unearned Revenue $ 29,535,535 in lots. While many of the collections are undoubtedly quite valuable and irreplaceable, the University has not placed a dollar value on these items and, accordingly, the financial statements do not include these assets. | |||
The Samuel P. Harn Museum of Art, which is also part of the Other Currenit Liabilities University, maintains a collection of over 9,500 works of art. | |||
Donations of artwork to the Museum are recorded by the The University maintained accounts with a local bank to University of Florida Foundation, Inc. (Foundation), and are process general operating expenses and payroll transactions. | |||
included with reported "Permanent Collections" as further Funds in excess of current need, including float, were invested. | |||
explained in Note 9 of the Foundation's audited financial As a result, the University's records showed a temporary cash statements for the fiscal year ended June30, 2014. Purchases overdraft for the amount of outstanding checks not presented of artwork by the Museum are included with the University's as of June 30, 2014. This did not, however, represent an reported Nondepreciable Capital Assets as presented in overdraft in the University's depository accounts. | |||
Table 9. | |||
UnearnedlRevenu Lng-T rm Liabl' es Unearned Revenue includes amounts received prior to the Long-term liabilities of the University at June 30, 2014, end of the fiscal year but related to subsequent accounting include capital improvement debt payable, loans and notes periods. Unearned Revenue, as of June 30, 2014, is payable, installment purchase agreements payable, capital summarized in Table 10. leases payable, compensated absences payable, other postemployment benefits payable, liability for self-insured claims, and other noncurrent liabilities. Long-term liability activity for the fiscal year ended June 30, 2014, is presented in Table 11. | |||
Am A Beginning Ending Current Description Balance Additions Reductions Balance Porton Capital Asset-Related Debt: | |||
Capital Improvement Debt Payable $ 119,401,170 $ 71;005,090 $ 8,827,548 $ 181,578,712 $ 8,605,000 Loans and Notes Payable 5,000,000 6,472,538 11,472,538 280,476 Installment Purchase Agreements Payable 1,618,078 2,919,715 1,177,907 3,359,886 1,262,710 Capital Leases Payable 3,075,763 128,780 ....-__2,946,983 137,086 Total Capital Asset-Related Debt 129,095,011 80,397,343 10,134,235 199,358,119 10,285,272 Other Long-Term Liabilities: | |||
Compensated Absences Payable 113,448,325 24,145,957 11,643,673 125,950,609 11,657,892 Other Postemployment Benefits Payable 139,775,000 48,595,000 7,680,000 180,690,000 Liability for Self-Insured Claims (Note 16) 56,147,461 (5,784,153) 4,561,774 45,801,534 9,195,899 Other Noncurrent Liabilities 18,768j201 286,310 18,481,891 Total Long-Term Liabilities $ 457,233,998 $ 147,354,147 $ 34,35A.992 $ 570,m153 $ 31,139,063 A Component Unit of the State of Florida 1 31 | |||
Notes A. CAPITAL IMPPOVEMENT DEBT PAYABLE On November 20, 2013, the Florida Board of Governors, on behalf of the University, issued $24,805,000 of University of Capital improvement debt is issued to construct student Florida Housing Dormitory Revenue Bonds, Series 2013A. The housing facilities, parking garages, and various other bonds are repaid from dormitory fees charged to students. | |||
University facilities. The outstanding debt for student housing $19,600,000 of the proceeds are used to construct a 255-bed and parking garages is secured by a pledge of a portion of dormitory with state-of-the-art features complying with the housing rental revenues and parking fees. The outstanding Americans with Disabilities Act. The remaining $5,205,000 will debt for the Clinical Translational Research Building is secured refund portions of the Student Housing Auxiliary Debt Bonds, by a pledge of a portion of indirect costs revenues received Series 2005A, maturing in years 2016 through 2023. The new by the College of Medicine. Pledged revenues are equal to bonds will mature in annual increments starting on July 1, the remaining debt service requirements to maturity for the 2014, and ending on July 1, 2033. Interest payments are due capital improvement debt. semiannually on January I and July I beginning July 1, 2014. | |||
On September 10, 2013, the Florida Board of Governors, on A summary of the University's capital improvement debt behalf of the University, issued $41,540,000 of University payable at June 30, 2014, appears in Table 12. | |||
of Florida Student Activity Revenue Bonds, Series 2013. The bonds are repaid from student activity and service fees and Annual requirements to amortize all capital improvement the proceeds are used to renovate and expand the J. Wayne debt outstanding as of June 30, 2014, appear in Table 13. | |||
Reitz Union, the community center of the University. The bonds will mature in annual increments starting on July 1, 2014, and ending on July 1, 2033. Interest payments are due semiannually on January 1 and July 1 beginning January 1, 2014. | |||
Amount Outstanding Amount of Interest Maturity Type and Series Original Issue Principal Interest Rates Date Student Housing Auxiliary Debt: | |||
2005A Housing $ 37,610,000 $ 28,870,000 $ 12,312,948 4.000 to 5.125% 2030 2011A Housing 16,350,000 12,795,000 3,035,800 3.000 to 4.000% 2028 2012A Housing 26,500,000 24,590,000 8,309,088 3.000 to 4.000% 2031 2013A Housing 24,805,000 24,445,000 10,129,506 3.000 to 5.000% 2033 Total Student Housing Debt 1105,26M,0 90,700,000 33,787,342 Parking Garage Auxiliary Debt: 3,475,000 1998 Parking Garage 10,000,000 .428,174 4.500 to 4.750% 2019 2007A Parking Garage 20,770,000 16,110,000 5166,179 3.600 to 4.375% 2028 Total Parking Garage Debt 30,770,000 119,585,00 5,594,353 Other University of Florida Revenue Bonds: | |||
2011 Clinical Translational Research Building 29,838,000 26,615,000 10,822,815 4.433% 2030 2013 Student Activity 41,540,000 40,495,000 20,932,272 4.000 to 5.000% 2033 Total Other University of Florida Revenue Bonds 71378,000 67,110,000 31,755,087 Plus: Unamortized Premiums .r5,725;879 Less: Unamortized Discounts (295,280) | |||
Less: Unamortized Refunding Losses (1,246,887) | |||
Total Capital Improvement Debt $ 207,413,000 $ 181,578,712 $ 71,136,782 32 1 University of Florida | |||
2013-2014 Annual Financial Report IT, a"! | |||
Fiscal Year Ending June 30 Principal Interest Total Fiscal Year 2015 $ 7,630,348 $16,235,348 Ending June_30 ....... | |||
............. | |||
Principal ............... | |||
$ | ... | ||
.. | |||
... | |||
Interest.. Total | |||
$ 8,605,000 2016 9,484,000 7,284,541 16,768,541 2015 $ 1,262,710 $ 66,415 $ 1,329,125 2017 9,873,000 6,881,433 16,754,433 2016 784,928 41,222 826,150 2018 10,357,000 6,443,331 16,800,331 2017 677,952 23,510 701,462 2019 10,797,000 5,968,288 16,765,288 2018 419,419 9,375 428,794 2020-2024 50,770,000 22,943,633 73,713,633 214,877 217,388 2019 2,511 2025-2029 52,657,000 11,730,449 64,387,449 2030-2034 24,852,000 2,254,759 27,106,759 Total Minimum Payments $ 3,359,886 $ 143,033 $ 3,502,919 Total Principal & Interest 177,95,8000 71,136,782 248,531,782 Plus: Unamortized Premiums 5,725,879 5,725,879 Less: Unamortized Discounts (295,280) (295,280) D. CAPITAL LEASES PAYABLE Less: Unamortized Refunding Losses (1,246,887) - (1,246,887) On June 8, 1994, the former Board of Regents, on behalf of Total $181,578,712 $71,135,781$252,715,44 the University of Florida, entered into a lease agreement with the University of Florida Foundation, Inc. (the Foundation), a direct support organization (component unit) of the University. | |||
$ | Under the terms of the agreement, the University agreed to B. LOANS AND NO ITES PAYABLE lease from the Foundation a 607-space parking garage (the On August 30, 2013, the University borrowed $6,472,538 garage) located nearthe Health Science CenterAdministrative at an interest rate of 2 .33%, to finance the cost of heating, Offices for a period of thirty years beginning July 1, 1994. | ||
ventilation, and air conditioning (HVAC) update and Lease payments of $100,000 annually are due each July 1. | |||
renovation of J. Waynee Reitz Student Union. The principal The garage was simultaneously acquired by the Foundation and interest cost is ex pected to be met by cost savings of from Shands Teaching Hospital and Clinics, Inc. (Shands), also note matures on August 31, 2029, and a component unit, and financed by the Foundation through the newer system. The principal and interest p.ayments are made annually. On June the issuance of a promissory note secured by a non-recourse 17, 2013, the University borrowed $5,000,000 at an interest mortgage containing payment terms similar to those in the rate of 3.58% for a simil ar renovation at Willard M. Fifield Hall. lease agreement between the Foundation and the University. | |||
The note matures on qovember 1, 2033, and principal and Lease payments from the University to the Foundation and interest payments are made annually. Annual requirements from the Foundation to Shands were based on an original to amortize the two ouitstanding notes as of June 30, 2014, construction cost of $3,000,000 and no interest. For reporting purposes, the lease is considered a capital lease under GASS appear in Table 14. | |||
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The initial obligation was discounted at an imputed interest rate of 6.45% and was Fiscal Year Ending June 30 Principal . .Interest Total recorded at $1,382,470. The asset, which is included in the 2015 $ 280A476 $ 523,747 $ 804,223 Property Under Capital Lease and Leasehold Improvements, | |||
*niR 527465 .. 17 57R R4 041 was recorded at cost to Shands of $3,000,000. | |||
2016 2017 551,318 .303,364 854,682 2018 572,130 288,408 860,538 On March 1, 2000, the University, acting for and on behalf of 2019 597,825 272,820 870,645 the former Board of Regents, entered into a lease agreement 2020-2024 3,099,954 1,121,935 4,221,889 2025-2029 3,818,784 658,504 4A477,288 with Shands. Under the terms of the agreement, the University 2030-2034. 2,024,586 217,699 2,242,285 agreed to lease from Shands an 800-space parking garage | |||
$11,472,538 $ 3,704,E53 $15,175,591 located near the Health Science Center Administrative Offices Total | |||
. = for a period of thirty years beginning March 1, 2000. Annual lease payments of $227,167 are due each May 1. beginning C. INSTALLMENT P'UPCHASE AGPEEMENTS May 1, 2001. Lease payment amounts were based on an original construction cost of $6,815,002 and no interest. For PAYABLE reporting purposes, the lease is considered a capital lease The University has ente red into several installment purchase under GASB Statement No. 62. The initial obligation was agreements for the p urchase of equipment reported at discounted at an imputed interest rate of 6.45% and was | |||
$5,973,451. The stated interest rates ranged from 0.00% to recorded at $2,981,939. The asset, which is included in the 5.38%. Future minimum payments remaining under installment Property Under Capital Lease and Leasehold Improvements, purchase agreements as of June 30, 2014, appear in Table 15. was recorded at cost to Shands of $6,815,002. A summary A Component Unit of the State of Florida 1 33 | |||
Notes of pertinent information related to the two capital leases F. OTHEP POSTEMPLOYMENT appears in Table 16. BENEFITS PAYABLE The University follows GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for certain postemployment healthcare benefits administered by the State Group Health Interest Original Outstanding Insurance Program. | |||
. | Capital Leases Rate Balances Balance Plan Description. Pursuant to the provisions of Section Shands Garage (607 spaces) 6.45% $ 1,382,470 $ 720,568 Shands Garage (800 spaces) 6.45% 2,981,939 2,226,415 112.0801, Florida Statutes, all employees who retire from the University are eligible to participate in the State Group Health Total $ 4,364,409 $ 2,946,983 Insurance Program, an agent multiple-employer, defined-benefit plan (Plan). The University subsidizes the premium Future minimum payments underthe capital lease agreements rates paid by retirees by allowing them to participate in the and the present value of the minimum payments as of June Plan at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. These 30, 2014, are presented in Table 17. | ||
$ | rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the Plan, on average, than those of Fiscal Year active employees. Retirees are required to enroll in the Federal Ending June_30 Principal *Interest Medicare program for their primary coverage as soon as they are eligible. A stand-alone report is not issued and the Plan 2015 $ 137,086 S 190,080 $ 327,166 2016 145,928 181,238 327,166 information is not included in the report of a public employee 2017 155,341 171,826 327,167 retirement system or another entity. | ||
2018 165,360 161,806 327,166 2019 176,026 151,141 327,167 Funding Policy. Plan benefits are pursuant to provisions 2020-2024 1,065,809 570,025 1,635,834 of Section 112.0801, Florida Statutes, and benefits and 2025-2029 888,030 247,804 1,135,834 2030 213,403 13,765 227,168 contributions can be amended by the Florida Legislature. The | |||
........-.. | |||
..... . . . ..................... University has not advance-funded or established a funding Total $ 2,946,983 $ 1,687,685 $ 4,611468 methodology for the annual Other Postemployment Benefit (OPEB) costs or the net OPEB obligation, and the Plan is financed on a pay-as-you-go basis. For the 2013-14 fiscal year, 2,412 retirees received postemployment healthcare E. COMPENSATED ABSENCES PAYABLE benefits. The University provided required contributions of Employees earn the righ t to be compensated during absences $7,680,000 toward the annual OPEB cost, comprised of benefit for annual leave (vacatic)n) and sick leave earned pursuant to payments made on behalf of retirees for claims expenses (net Board of Governors Reg ulations, University Regulations, and of reinsurance), administrative expenses, and reinsurance bargaining agreements. Leave earned is accrued to the credit premiums. Retiree contributions totaled $14,385,000, which rnf th* *mnlnvi* *nd re crrd*rr are kent on each emnlnvee'sj represents 1.3% of covered payroll. | |||
unpaid (unused) leave balance. The University reports a Annual OPEB Cost and Net OPEB Obligation. The University's liability for the accrued leave in accordance with its policy annual OPEB cost (expense) is calculated based on the regarding leave payment upon separation from employment. annual required contribution (ARC), an amount actuarially However, Noncapital State Appropriations fund only the determined in accordance with the parameters of GASB portion of accrued leave that is used or paid in the current 45. The ARC represents a level of funding that if paid on an fiscal year. Although the University expects the liability to ongoing basis, is projected to cover normal cost each year and be funded primarily from future appropriations, generally amortize any unfunded actuarial liabilities over a period not to accepted accounting principles do not permit the recording exceed 30 years. Table 18 shows the University's annual OPEB of a receivable in anticipation of future appropriations. cost for the fiscal year, the amount actually contributed to the At June 30, 2014, the estimated liability for compensated Plan, and the changes in the University's net OPEB obligation. | |||
absences, which includes the University's share of the Florida Retirement System and FICA contributions, totaled | |||
$125,950,609. The current portion of the compensated absences liability is the amount expected to be paid in the coming fiscal year, and is based on actual payouts over the last three years, calculated as a percentage of those years' total compensated absences liability. | |||
34 1 University of Florida | |||
2013-2014 Annual Financial Report that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial Description Amount accrued liabilities for benefits. | |||
Normal Cost (service cost for one year) $ 23,897,000 Actuarial Methods and Assumptions. Projections of Amortization of Unfunded Actuarial Accrued Liability 22,113,000 benefits for financial reporting purposes are based on the Interest on Normal Cost and Amortization 1,840,000 substantive plan provisions, as understood by the employer Annual Required Contribution 47,850000 and participating members, and include the types of benefits Interest on Net OPEB Obligation 5,591,000 provided at the time of each valuation and the historical Adjustment to Annual Required Contribution (4,846,000) pattern of sharing of benefit costs between the employer and participating members. The actuarial methods and Annual OPEB Cost (Expense) | |||
Contribution Toward the OPEB Cost (7,680,000) assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued Increase in Net OPEB Obligation 40,915,000 liabilities and the actuarial value of assets, consistent with the Net OPEB Obligation, Beginning of Year 139,775,000 | |||
.................... long-term perspective of the calculations. | |||
Net OPEB Obligation, End of Year $ 180,690,000 The University's OPEB actuarial valuation as of July 1, 2013, used the entry-age cost actuarial method to estimate the The University's annual OPEB cost, the percentage of annual actuarial accrued liability as of June 30, 2014, and the OPEB cost contributed to the Plan, and the net OPEB obligation University's estimated 2013-14 fiscal year annual required as of June 30, 2014, and for the two preceding fiscal years, are contribution. This method was selected because it is the presented in Table 19. same method used for the valuation of the Florida Retirement System. Because the OPEB liability is currently unfunded, the actuarial assumptions included a 4% rate of return on invested assets. The actuarial assumptions also included a payroll growth rate of 4% per year and an inflation rate of Percentage 3%. Healthcare trend rates were 7.4%, 7.0%, and 8.2% for of Annual the first three years respectively for all retirees in the PPO Annual OPEB Cost Net OPEB Fiscal Year OPEB Cost Contributed Obligation (Preferred Provider Organization) Plan and were 3.9%, 7.8%, | |||
and 8.3% for the first three years for all retirees in the Health 2011-12 $ 47,652,000 19.7% $ 102,458,000 Maintenance Organization (HMO) Plan. The PPO and HMO 2012-13 47,382,000 21.2% 139,775,000 2013-14 48,595,000 15.8% 180,690,000 healthcare trend rates both grade down to an ultimate rate of 5.0% over 70 years. The unfunded actuarial accrued liability is being amortized over 30 years using the level percentage of projected payroll on an open basis. | |||
Funded Status and Funding Progress. As of July 1, 2013, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $663,395,000 and the actuarial Interdepartmental value of assets was SO, resulting in an unfunded actuarial accrued liability of $663,395,000 and a funded ratio of 0%. | |||
The covered payroll (annual payroll of active participating Interdepartmental sales between auxiliary service employees) was $1,072,983,725 for the 2013-14 fiscal year, departments and other institutional departments have and the ratio of the unfunded actuarial accrued liability to the been eliminated from expenses and revenues for reporting covered payroll was 61.8%. | |||
purposes. The interdepartmental transactions eliminated in Actuarial valuations of an ongoing plan involve estimates the financial statement preparation totaled $114,768,852 for of the value of reported amounts and assumptions about the fiscal year ended June 30, 2014. | |||
the probability of occurrence of events far into the future. | |||
Examples include assumptions about future employment and termination, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the Retirement Programs annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. A. FLORIDA RETIREMENT SYSTEM The Schedule of Funding Progress, presented as required Essentially all regular employees of the University are eligible supplementary information following the Notes to the to enroll as members of the State-administered Florida Financial Statements, presents multiyear trend information Retirement System (FRS). Provisions relating to the FRS A Component Unit of the State of Florida 1 35 | |||
Notes are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Percent of Gross Salary Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. The FRS is Class Employee Employer(Al a single retirement system administered by the Department Florida Retirement System, Regular 3.00% 6.95% | |||
of Management Services, Division of Retirement, and consists Florida Retirement System, Senior Management Service 3.00% 18.31% | |||
of two cost-sharing, multiple employer retirement plans and 19.06% | |||
Florida Retirement System, Special Risk 3.00% | |||
other nonintegrated programs. These include a defined- Deferred Retirement Option Program-Applicable benefit pension plan (Plan), with a Deferred Retirement Option to members from all of the above classes 0.00% 12.84% | |||
Program (DROP), and a defined-contribution plan, referred to Florida Retirement System, Reemployed Retiree (B) (B) as the FRS Investment Plan (Investment Plan). | |||
(A) Employer rates for each membership class include 1.20% for health Employees enrolled in the Plan prior to July 1, 2011, vest at six insurancesubsidy.Also, employer rates,otherthan for DROPparticipants, include .03% for administrativecosts of the Investment Plan. | |||
years of creditable service and employees enrolled in the Plan (B) ContributionRates are dependent upon retirement class in which on or after July 1, 2011, vest at eight years of creditable service. | |||
reemployed. | |||
All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk, who are eligible for normal retirement benefits at age 55 The University's liability for participation is limited to the or at any age after 25 years of service. All members enrolled in payment of the required contribution at the rates and the Plan on or after July 1, 2011, once vested, are eligible for frequencies established by law on future payrolls of the normal retirement benefits at age 65 or any time after 33 years University. There were 8,431 University participants during of creditable service, except for members classified as special the 2013-14 fiscal year. The University's contributions for the risk, who are eligible for normal retirement benefits at age 60 fiscal years ended June 30, 2012, June 30, 2013, and June or at any age after 30 years of service. Members of both Plans 30, 2014, totaled S16,712,175, $17,809,204, and $26,821,475 may include up to 4 years of credit for military service toward respectively, which were equal to the required contributions creditable service. The Plan also includes an early retirement for each fiscal year. For the fiscal year ended June 30, 2014, provision; however, there is a benefit reduction for each year a the employee contributions totaled $8,939,009. | |||
member retires before his or her normal retirement date. The As provided in Section 121.4501, Florida Statutes, eligible FRS Plan provides retirement, disability, and death benefits, and members may elect to participate in the Investment Plan in annual cost-of-living adjustments. lieu of the FRS defined-benefit plan. University employees DROP, subject to provisions of Section 121.091, Florida already participating in the State University System Statutes, permits employees eligible for normal retirement Optional Retirement Program or the DROP are not eligible under the Plan to defer receipt of monthly benefit payments to participate in this program. Employer contributions are while continuing employment with an FRS employer. An defined by law, but the ultimate benefit depends in part on employee may participate in the DROP for a period not to the performance of investment funds. The Investment Plan exceed 60 months after electing to participate. During the is funded by employer and employee contributions that are period of DROP participation, deferred monthly benefits are based on salary and membership class (Regular Class, Senior held in the FRS Trust Fund and accrue interest. Management Service Class, etc.). Contributions are directed to individual member accounts, and the individual members The State of Florida establishes contribution rates for allocate contributions and account balances among various participating employers and employees. Effective July 1, 2011, approved investment choices. Employees in the Investment employees were required to contribute 3% of gross salary Plan vest at one year of service. There were 1,823 University towards retirement. Contribution rates during the 2013-14 participants during the 2013-14 fiscal year. Required employer fiscal year are presented in Table 20. | |||
contributions made to the Investment Plan totaled S5,289,277 and employee contributions totaled $2,225,208. | |||
Financial statements and other supplementary information of the FRS are included in the State's Comprehensive Annual Financial Report, which is available from the Florida Department of Financial Services. An annual report on the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Division of Retirement's web site (www.frs.myflorida.com). | |||
36 University of Florida | |||
2013-2014 Annual Financial Report B. STATE UNIVERSITY SYSTEM OPTIONAL C. INSTITUTE OF FOOD AND AGRICULTURAL RETIREMENT PROGRAM SCIENCES SUPPLEMENTAL RETIREMENT Section 121.35, Florida Statutes, provides for an Optional In 1984, the Florida Legislature enacted the Institute of Retirement Program (Program) for eligible university Food and Agricultural Sciences Supplemental Retirement instructors and administrators. The Program is designed to Act to provide a supplement to the monthly retirement aid State universities in recruiting employees by offering more benefit being paid under the Federal Civil Service Retirement portability to employees not expected to remain in the FRS for System to retirees of the Institute of Food and Agricultural eight or more years. Sciences (IFAS) at the University of Florida. The supplement is designated for IFAS cooperative extension employees The Program is a defined-contribution plan, which provides employed before July 1, 1983, who are not entitled to benefits full and immediate vesting of all contributions submitted from either a State-supported retirement system or social to the participating companies on behalf of the participant. security based on their service with IFAS. It was intended to Employees in eligible positions can make an irrevocable compensate these IFAS employees for the difference between election to participate in the Program, ratherthan the FRS, and their Civil Service benefit and the benefits an FRS member purchase retirement and death benefits through contracts receives, which include a social security benefit. No additional provided by certain insurance carriers. The employing persons can become eligible for this supplement. | |||
university contributes 5.14% of the participant's salary to the participant's account, 2.19% to cover the unfunded actuarial There were 25 University participants during the 2013-14 liability and 0.01% to cover the administrative costs, for a fiscal year. Required employer contributions made to the total of 7.34%. Effective July 1, 2011, employees are required program totaled $430,243. Employees do not contribute to to contribute 3.0% of the employee's salary. Additionally, the this program. | |||
employee may contribute, by payroll deduction, an amount not to exceed the percentage contributed by the University to the participant's annuity account. The contributions are D. OTHER RETIREMENT PROGRAMS invested in the company or companies selected by the Some University employees participate in the U.S. Civil Service participant to create a fund for the purchase of annuities at Retirement System. Thirty-one employees were covered by retirement. the U.S. Civil Service Retirement System during the 2013-There were 5,765 University participants during the 2013- 14 fiscal year. Employer contributions totaled S178,938, and 14 fiscal year. Required employer contributions made to the employee contributions totaled $178,938. | |||
Program totaled S31,843,739 and employee contributions totaled $23,799,258. | |||
Notes To nstruction." omin anitmJne 1 , e The University's construction commitments at June 30, 2014, are presented in Table 21. | |||
Balance Project Title Total Commitment Completed to Date Committed | |||
.................... ,. .. | |||
.......... | |||
.................... ... .... | |||
.. ........... | |||
.... .. ...... .... ...... | |||
...... | |||
......... | |||
Reitz Union Expansion and Renovation $ 70,172,877 $ 21,092,791 S 49,080,086 Chemical Biology Building - Chemistry 65,166,293 5,007,978 60,158,315 Harrell Medical Education Building 45,419,000 10,042,443 35,376,557 Joint Use Library Storage Facility 26,660,000 1,516,636 25,143,364 Heavener Hall - School of Business Building 22,650,000 14,822,513 7,827,487 Cypress Hall - Single Student Housing 2015 21,900,000 3,957,784 17,942,216 PK Yonge Middle and High School Expansion 18,830,800 285,950 18,544,850 Energy Efficiencies for HVAC, Roof and Building Automation Controls Entomology and Nematology 5,879,268 4,289,064 1,590,204 Broward Hall - Bathrooms, Lounges, Apartment Renovation 5,786,445 4,179,908 1,606,537 Corry Village Building 288 Renovation 4,927,625 3,030,344 1,897,281 Chilled Water Plant Boiler Replacement 4,461,317 2,589,435 1,871,882 Marston Science Library Renovation 4,099,339 2,732,843 1,366,496 Dasburg President's House :4,000,000 529,549 3,470,451 Thomas Hall Window Replacement 3,258,400 1,061,361 2,197,039 Buckman Hall Air Conditioning Design & Installation 2,952,800 1,446,451 1,506,349 Corry Village Building 282 Renovation 2,735,640 1,770,353 965,287 Corry Village Building 277 Renovation 2,719,730 348,480 2,371,250 Buckman Hall Bathroom, Kitchen, and Plumbing Renovation 2,659,000 1,454,559 1,204,441 Corry Village Building 286 Renovation 2,533,255 1,956,515 576,740 Corry Village Building 283 Renovation 2,431,865 373,271 2,058,594 Buckman Hall Window Replacement 2,274,757 1,011,745 1,263,012 CorryVillage Building 276 Renovation .2,141,334 1,111,203 1,030,131 SCADA-(Steam Piping) Infrastructure-Campus 2,046,297 1,779,000 267,297 Austin Cary Conference Center 1,920,840 1,809,780 111,060 Fume Hoods Chemical Lab 28 1,901,609 2,500 1,899,109 Air Handling Units Replacement, Fire Sprinkler Installation and Reroof- Dental Science Building 1,901,500 1,375,373 526,127 Chilled Water Plant 10 .1,832,611 69,263 1,763,348 Gator Corner Dining Addition 1,785,818 1,621,928 163,890 Electrical Sub Station 10 1,686,832 306,470. 1,380,362 Communicore Basement Sprinkler Installation and Ductwork Replacement 1,459,007 1,023,203 435,804 MarstonScience Library Renovation - Smathers Map Room 1,441,506 806,535 634,971 Broward Hall - Fire Sprinkler and Alarm Systems .1,371,510 217,683 1,153,827 Broward Hall - Electrical Upgrades :1;291,117 1 8,717 1,282,400 Anatomical Pathology and Clinical Pathology Areas Renovation - Necropsy 1,281,006 1,220 ,160: 60,846 Government House Rehabilitation - St Augustine - Phase II 1,200,000 872,568 327,432 Weil Hall Chiller Plant Replacement 1,152,307 67,849 1,084,458 Lacy C. Rabon Chilled Water Plant 1,120,834 1,025,219 95,615 Stetson Medical Science Building Lab Suite Renovation - Pulmonary 1,106,916 831,726 275,190 Gainesville Communication Services Building 1,096,816 1,061,651 35,165 Campus Security System Enhancement 1,004,900 655,579 349,321 McKnight Brain Institute Lab Li -151 Renovation 1,000,000 928,421 71,579 Subtotal 351,261,171 100,294,801 250,966,370 Projects Under $1,000,000 51,279,984 30,146,532 21,133,452 Total $ 402,541,155 $ 130,441=333 $ 272,099,822 R isk Management Programs participates in State self-insurance programs providing insurance for property and casualty, workers' compensation, general liability, fleet automotive liability, Federal Civil Rights, and employment discrimination liability. During the 2013-A. STATE SELF-INSUPANCE PPOGPAMS 14 fiscal year, for property losses, the State retained the The University is exposed to various risks of loss related to first $2 million per occurrence for all perils except named torts; theft of, damage to, and destruction of assets; errors windstorm and flood. The State retained the first $2 million and omissions; injuries to employees; and natural disasters. of losses per occurrence with an annual aggregate retention Pursuant to Section 1001.72(2), Florida Statutes, the University of $40 million for named windstorm and flood losses. After 38 University of Florida | |||
2013-2014 Annual Financial Report the annual aggregate retention, losses in excess of S2 million losses which are subject to Section 768.28, Florida Statutes, per occurrence were commercially insured up to $50 million including legislative claims bills, that in combination with the for named windstorm and flood losses through February 15, waiver of immunity limits described in Section 768.28, Florida 2014, and increased to S54 million starting February 16, 2014. Statutes, do not exceed Sl million per claim and, for voluntary For perils other than named windstorm and flood, losses in settlements defined by the Program's Memorandum of excess of S2 million per occurrence were commercially insured Protection, S2 million per claim. For those protected entities up to $200 million; and losses exceeding those amounts not subject to Section 768.28, Florida Statutes, the Program were retained by the State. No excess insurance coverage is provides $2 million per claim. The per claim limit of liability provided for workers' compensation, general and automotive protection for the participants does not exceed S2 million per liability, Federal Civil Rights and employment action coverage; claim in the event more than one protected entity is involved all losses in these categories are completely self-insured by in the same claim or action. | |||
the State through the State Risk Management Trust Fund Pursuant to Board of Governors' Regulation 10.001(2), the established pursuant to Chapter 284, Florida Statutes. | |||
University of Florida Self-Insurance Program Council has Payments on tort claims are limited to $200,000 per person, created the University of Florida Healthcare Education and $300,000 per occurrence as set by Section 768.28(5), | |||
Insurance Company (H EIC), a captive insurancecompanywhich Florida Statutes. Calculation of premiums considers the cash is wholly owned by the Board of Governors and domiciled in needs of the program and the amount of risk exposure for the State of Vermont. HEIC is managed by a Board of Directors each participant. There have been no significant reductions in created by the Board of Governors. HEIC provides coverage insurance coverage from the prior year coverage. Settlements for claims that are in excess of the protections afforded by have not exceeded insurance coverage during the past three the University of Florida Self-Insurance Program, at limits fiscal years. | |||
of $4 million per-legislative claims bill coverage for insured Pursuant to Section 110.123, Florida Statutes, University participants subject to Section 768.28, Florida Statutes, and employees may obtain healthcare services through $3 million per claim for voluntary settlements entered into by participation in the State's group health insurance plan or the Self-Insurance Program Council and insured participants through membership in a health maintenance organization that are not subject to Section 768.28, Florida Statutes. HEIC plan under contract with the State. The State's risk financing provides additional limits of liability coverage of $50 million activities associated with State group health insurance, such per claim and in the aggregate, which is in excess of the as risk of loss related to medical and prescription drug claims, coverages described above. The excess insurance is paid to are administered through the State Employees' Group Health claimants on a first-come, first-serve basis. | |||
Insurance Trust Fund. It is the practice of the State not to Claims settlement and adjustment expenses are accrued purchase commercial coverage for the risk of loss covered by as expenses and liabilities of the University of Florida Self-this Fund. Additional information on the State's group health Insurance Program and University of Florida Healthcare insurance plan, including the actuarial report, is available from Education Insurance Company, for the estimated settlement the Florida Department of Management Services, Division of value of claims that is reported as a Liability for Self-State Group Insurance. | |||
Insured Claims. The estimated settlement value of claims was determined based on the judgment and experience of management and the Self-Insurance Program Council through B. UNIVERSITY SELF-INSURANCE PROGRAMS a case-by-case review. Estimated losses from incurred but The University of Florida Self-Insurance Program was unreported incidents are accrued based upon the findings of reestablished by the Florida Board of Governors effective July casualty actuaries. | |||
1, 2006, by amending Board of Governors' Regulation 10.001, The amount of Liability for Self-Insured Claims accrued merging the then JHMHC Self-Insurance Program and the for the Self-Insurance Programs at June 30, 2014, was prior University of Florida JHMHC/Jacksonville Self-Insurance | |||
$45,801,534 for compensatory losses and for allocated Program. The Self-Insurance Program provides general and expenses. The Liability for Self-Insured Claims was accrued at professional liability protection for the University of Florida an undiscounted present value. The liability declined because Board of Trustees (UFBOT) on behalf of the six health colleges the actuary recommended a decrease in funding that can be of the JHMHC, the College of Veterinary Medicine teaching attributed to: the sovereign immunity granted to Shands and hospitals, the Student Health Care Center, its direct support Shands Jacksonville as of July 1, 2011; lower case reserves organization, and their employees and agents. Hospital required for more mature years; and the decrease in the professional liability protection, including general liability, is possibility of claims reaching the HEIC layer. As a result, the provided to ShandsTeaching Hospital and Clinics, Inc. (Shands), | |||
Self-Insurance Claims and Expenses on the Statement of Shands Jacksonville Medical Center, Inc. (a subsidiary of Revenues, Expenses and Changes in Net Position are negative Shands Jacksonville HealthCare, Inc. - Shands Jacksonville), | |||
for the 2013-14 fiscal year. | |||
other entities statutorily authorized to participate in the Self-Insurance Program, and their employees and agents. The aggregate amount of claims liabilities for which annuity The UFBOT and other immune entities are protected for contracts have been purchased in the claimants' names, A Component Unit of the State of Florida 1 39 | |||
Notes resulting in the removal of the related liabilities from the Changes in the balances of claims liabilities for the Self-Statement of Net Position, totals $117,162 for the Self- Insurance Program and HEIC during the 2012-13 and 2013-14 Insurance Program at June 30, 2014. These annuities have fiscal years are presented in Table 22. | |||
been assigned to third parties, and all claimants have fully and completely released the Self-insurance Program participants from all actual and contingent liability. | |||
Current Claims Liabilities Claims/ Changes Claims Claims Liabilities Fiscal Year Beginning of Year in Estimates (A) Payments End of Year 2012-13 $ 102,831,592 $ (29,286,713) $ (17,397,418) $ 56,147,461 2013-14 56,147,461 (5,784,153) (4,561,774) 45,801,534 (A) The change in estimates of claim costs for the 2012413 and 2013-14 fiscalyears, as determinedby actuary,resulted in:neg:ative CurrentClaims/Changes in Estimates.See Note 16B for more details. | |||
* ,: ,*.*** | |||
Litigation And Contingoencies Functional Classifications Amount The University is involved in several pending and threatened Instruction $ 686,759,685 Research 584,733,991 legal actions. The range of potential loss from all such claims Public Service 432,100,137 and actions, as estimated by the University's legal counsel and Academic Support 167,247,282 management, should not materially affect the University's Institutional Support 162,252,432 Depreciation 123,114,297 financial position. Auxiliary Operations 112,306,719 Operation and Maintenance of Plant 94,904,616 The United States Department of Health and Human Services' Scholarships, Fellowships and Waivers, Net 56,659,181 Student Services 35,851,320 and National Science Foundation's Offices of Inspector General, with the United States Department of Justice (civil division), Total Operating Expenses $ Z455,929,660 are investigating the University's practices relating to Federal awards finances and accounting. University management is unable to make a determination of the outcome or estimate costs that the University may incur as a result of this audit. ..... int U it 0 Functional Distribution Of A. BLENDED COMPONENT UNITS | |||
. j Operati..E3, ExpeI ses The University has two blended component units as discussed in Note 1. Financial information for the University's blended The functional classification of operating expenses (instruction, component units is presented in Table 24. | |||
research, etc,) is assigned to each individual transaction based on the nature of the activity. The operating expenses on the Statement of Revenues, Expenses, and Changes in B. DISCRETELY PRESENTED COMPONENT Net Position are presented by natural classifications. Table 23 UNITS presents those same expenses in functional classifications as The University's financial statements include 14 discretely recommended by NACUBO. presented component units as discussed in Note 1. These component units comprise 100% of the transactions and account balances of the aggregate discretely presented component units' columns of the financial statements. | |||
Summary financial information from the most recently available audited financial statements for these component units is presented on the following pages inTables 25,26, and 27. | |||
40 1 University of Florida | |||
2013 201-1 Annual Financial Poport | |||
'XI | |||
..... .. | |||
A4., 0.!. 44jkAII6 AV- | |||
!"o A | |||
wit | |||
.............. | |||
'IF A Coirponent Unit of thc, State of Flonchi 411 | |||
Notes and Parking Services provides the University with safe and adequate parking facilities. Several parking garages have been constructed from the proceeds of revenue-backed I Segment Information debt instruments. The Department of Housing and Residence Education provides safe and affordable living space for A segment is defined as an identifiable activity (or grouping students of the University of Florida. Capital improvement of activities) that has one or more bonds or other debt debt has been issued over the years to provide funding for the instruments outstanding, with a revenue stream pledged construction of facilities to house students of the University. | |||
in support of that debt. In addition, the activity's related A summary of the financial activity for these segments is revenues, expenses, gains, losses, assets, and liabilities are presented in Table 28. | |||
required to be accounted for separately. Transportation | |||
2013-2014 Annual Financial Report | |||
-o-~ ~ v~ *oo 4 | |||
* Healthcare . Total Education Blended Total Self-Insurance Insurance Component Primary Program Company Units University Eliminations Government | |||
.. ... 32,882............. | |||
....... | |||
.......... | |||
CONDENSED STATEMENT OF NET POSITION Assets Due from University/Blended Component Units $ $ 32,882 $ 32,882 $ $ (32,882) $ - | |||
Current Assets 165,875 19,339 185,214 1,155,171 (1,860) 1,338,525 Capital Assets, Net 1,714,765 - 1,714,765 | |||
.Other Noncurrent Assets 189,562 189,562 Total Assets 165,875 52,221 218,096 3,059,498 (34,742) 3,242,852 (32,882)... ............... | |||
Liabilities Dueto University/Blended Component Units 32,882 32,882 215,644 (32,882) 214,916 Current Liabilities 1,128 4 1,132 (1,860) | |||
Noncurrent Liabilities 34,952 10,850 45,802 493,342 539,144 Total Liabilities 68,962 10,854 79,816 708,986 (34,742) 754,060 Net Position Net Investment in Capital Assets 96,913 1,565,313 - 1,565,313 Restricted - Expendable Other 41,67 138,280 636,630 - 774,910 Unrestricted S- 148,569 148,569 Total Net Position | |||
$ 96,913 | |||
$ 41.367 $ 13828 $ 2,350,512 ....... | |||
5,.......... | |||
..... $~ | |||
- 488,792 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating Revenues $ 10,976 $ 684 $ 11,660 $ 1,655,962 $ (7,752) S 1,659,870 Depreciation Expense (123,114) - (123,114) | |||
Other Operating Expenses (6,348) 6,444 96 (2,340,664) 7,752 (2,332,816) | |||
Operating Income (Loss) 4,628 7,128 11,756 (807,816) - (796,060) | |||
Nonoperating Revenues (Expenses) | |||
* Investment Income, Net of Expenses 1,972 564 2,536 31,340 33,876 Net Increase in the Fair Value of Investments 9,944 2,363 12,307 20,217 32,524 Other Nonoperating Revenues 788,117 788,117 Net Nonoperating Revenues . .11,916 2,927 14,843 839,674 854,517 Other Revenues, Expenses, Gains, or Losses 61,374 61,374 Increase (Decrease) in Net Position 16,544 10,055 26,599 93,232 119,831 Net Position, Beginning of Year 80,369 31,312 111,681 2,257,280 - 2,368,961 Net Position, End of Year $ 96,913 $ 41,367 $ 138,280 $ 2,350W512 $ - $ Z.488,792 CONDENSED STATEMENT OF CASH FLOWS Net Cash Provided (Used) by Operating Activities $ 1,010 $ 509 S 1,519 $ (630,364) $ (4,139) $ (632,984) | |||
Noncapital Financing Activities 763,957 5,998 769,955 Capital and*Related Financing Activities (58,327) (58,327) | |||
Investing I Activities 640 (509) 131 (78,915) (78,784) | |||
Net Increase (Decrease) in Cash and Cash Equivalents 1,650 1,650 (3,649) 1,859 (140) | |||
Cash and Cash Equivalents, Beginning of Year 152 152 200 (46) 306 | |||
$ ... . $ | |||
.Cash and Cash Equivalents, End of Year.. $ 180= $ (3,449) $ 1,813 $ 166 A Component Unit of the State of Florida 1 43 | |||
Notes University University The University of Florida of Florida Athletic Research Foundation, Inc. Association, Inc. Foundation, Inc. | |||
CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 24,582 $ 17,557 $ | |||
Other Current Assets 101,223 59,424 139,732 Capital Assets, Net 73,524 171,919 Other Noncurrent Assets 1,772,521 . . . .57,008 Tt ! As t. . . ... | |||
............. | |||
.......... | |||
................... | |||
*.... | |||
+.... ....... .................... | |||
........ | |||
...... | |||
............. | |||
......... . | |||
.... . ............................ ............ | |||
*............................ | |||
Total Assets 1,971,850 305,908 139,732 Liabilities Due to Component Units/University 22,405 1,339 25,388 Other Current Liabilities 21,634 69,011 10,965 Noncurrent Liabilities 24,737 82,747 Total Liabilities . , . . . .... .... 68,776 | |||
.. . .... .. ............. .... ...... .... ... ............. .... 153,097 | |||
..... ...* .....:.... :. 36,353 | |||
.......... . .. .. ....................... . . | |||
Net Position Net Investment in Capital Assets 19,445 87,209 . | |||
Restricted-Nonexpendable Endowment 1,196,244 Restricted-Expendable Endowment 380,075 Restricted-Expendable Other 311,209 15,122 Unrestricted (3,899) 50,480 103,379 Total Net Position $ 1,903,074 $ 152,811 $ 103,379 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ .101,807 $ 67,846 $ 30,031 Operating Expenses (154,695) (107,117) (31,310) | |||
Operating Income (Loss) (52,888) (39,271) (1,279) | |||
Nonoperating Revenues (Expenses) and Other Revenues, Expenses, Gains, or Losses Investment Income, Net of Expenses 188,348 1,712 10,184 Net Increase inthe Fair Value of Investments 3,259 8,343 1,134, Other Nonoperating Revenues - 46,211 2,300 Other Nonoperating Expenses 487 (6,380) (540) | |||
Addition to Permanent Endowments 31,577 *- _. | |||
Change in Net Position 170,783 10,615 11,799 | |||
.... . . ..... ........ ... .... . . .. ... | |||
Net Position, Beginning of Year 1,732,291 142,196 91,580 | |||
.Adjustments to Beginning Net Position Net Position, Beginning of Year! as Restated 1,732,291 142,196 91,580 Net Position, End of Year $ 1,903,074 $ 152,811 $ 103,379 44 1 University of Florida | |||
2013-2014 Annual Financial Report GatorCare University Citrus Total Health of Florida Research and Direct-Management Gator Development Development Support Corporation Boosters, Inc. Corporation Foundation, Inc. Organizations | |||
$ $ 4,399 $ $ $ 46,538 17,081 13,381 826 6,323 337,990 | |||
:46 10,860 256,349 9,681 442 1,839,652 26,762 18,268 11,686 6,323 2,480,529 17,013 453 66,598 26,374 131 379 6,178 134,672 129 107,613 26,374 .17,273 832 6,178 308,883 46 10,860 117,560 442 1,196,686 380,075 279 326,610 388 507 (6) (134) 150,715 | |||
$ 388 .$ 995 $ 10,854 $ 145 $ 2,171,646 | |||
$ 406 $ 39,230 S 1,085 $ 9,368 $ 249,773 (103) (2,748) (2,098) (18,434) (316,505) 303 36,482 (1,013) (9,066) (66,732) 1,702 53 201,999 12,736 1,219 6,911 56,641 (38,178) (44,611) 6 31,583 303 12 206 (2,102) 191,616 85 983 10,648 2,247 1,980,030 85 983 10,648 2,247 1,980,030 | |||
$ 398 $ 995 . 10,854 $ 145 .$ 2,171,646 A Component Unit of the State of Florida 1 45 | |||
Notes Florida Florida University of Veterinary University of Total Clinical Florida Medicine Florida Health Practice Jacksonville Faculty Jacksonville Faculty Science Association, Physicians, Association, Healthcare, Associates, Center Inc. _ _ Inc., Inc. Inc. * | |||
* _ Inc. Affiliates CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 3,598 $ 10,703 t 1,004 $ 865 $ - $ 16,170 Other Current Assets 93,224 37,615 7,797 3,033 6,166 147,835 Capital Assets, Net 47,737 17,169 - 3,583 -. 68,489 Other Noncurrent Assets 24,258 . . 24,258 168,817. 65,487 8,801 7,481 6,166 256,752 Total Assets Liabilities Due to Component Units/University 7,384 456 4,987 - 12,827 Other Current Liabilities 16,368 11,937 923 2,125 " 112 31,465 Noncurrent Liabilities 35,354 6,031 ... . . _41,385 923 . . 7, 59,106 18,424 923 7,112 112 85,677 Total Liabilities Net Position Net Investment in Capital Assets 10,925 10,393 3,583 - 24,901 Unrestricted 98,786 36,670 7,878 (3,214) 6,054 146,174 Total Net Position $ .109,711 $ 47,063 $ 7,878 369 $ 6,054 $ 171,075 | |||
......~~~~~~ ~~~~~.... | |||
... ....-.-. | |||
: :.::-. -.... v .:. : | |||
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ 483,336 $ 229,534 $ 7,984 $ 224 $ 18,008 $ 739,086 Operating Expenses (115,015) (118,723) (411) (31,879) (250) (266,278) | |||
Operating Income (Loss) 368,321 110,811 7,573 (31,655) 17,758 472,808 Nonoperating Revenues (Expenses) | |||
Investment Income, Net of Expenses (352) 40 15 4 (293) | |||
Net Decrease in the Fair Value of Investments (412) - - - (412) | |||
Other Nonoperating Revenue * | |||
* 31,655 - 31,655 Other Nonoperating Expense (357,864) (110,657) (7,448), (15,230) (491,199) | |||
........................... . ....... ,532..... ..................... | |||
!2 . 5.. | |||
Change in Net Position 9,693 194 140 -2,532 12,559 Net Position, Beginning of Year 100,300 46,944 7,738 ... 369 3,522 158,873 Adjustments to Beginning Net Position (Note 2) (282) (75) (357) | |||
Net Position, Beginning of Year, as Restated 100,018 46,869 7,738 369 3,522 158,516 Net Position, End of Year $ 109,711 $ 47,063 $ 7,878 $ 369 $ 6,054 $ 171,075 46 1 University of Florida | |||
Notes 0 ~*<~<; tK:~2&.~ | |||
Shands Total Teaching Shands Shands Hospital Jacksonville Hospital | |||
& Clinics, Inc. HealthCare, Inc. and Others CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 60,318 $ $ 60,318 Other Current Assets 391,220 190,149 581,369 Capital Assets, Net 728,652 170,724 899,376 Other Noncurrent Assets 512,522 69,213 581,735 | |||
........ 2.................. | |||
: 5. .. | |||
. | |||
1,692,712 430,086 2,122,798 Total Assets Deferred Outflows of Resources Accumulated Decrease in Fair Value of Interest Rate Swap Agreements 42,052 42,052 Losses on Debt Refunding 631 631 Total Assets and Deferred Outflows of Resources 1,735,395 430,086 2,165,481 Uabilities Due to Component Units/University 10,129 37,342 47,471 Other Current Liabilities 161,362 88,389 249,751 Noncurrent Uabilities 614,871 136,008 750,879 Total Liabilities 786,362 261,739 1,048,101 Deferred Inflows of Resources Gains on Debt Refunding 11t668 11,668 Total Liabilities and Deferred Inflowsof Resources 798,030 .,:261,739. 1,059,769 Net Position Net Investment in Capital Assets 154,382 40,843. 195,225 Restricted-Nonexpendable Endowment 97 97 Restricted-Expendable Endowment 7,848 4,083 11,931 Unrestricted 775,038 123,421 898,459 Total Net Position $ 937,365 $ 168,347 $ 1,105,712 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ 1,199,789 $ 541,067 $ 1,740,856 | |||
'11,114,905) (510,612) (1,625,517) | |||
Operating Expenses Operating Income 84,884 30,455 1.15,339 Nonoperating Revenues (Expenses) | |||
*33,377 (3,376) | |||
Investment Income (Loss), Net of Expenses 30,001 Net Increase in the Fair Value of Investments 3,452 3,452 Other Nonoperating Revenue 11,377 531 11.908 Other Nonoperating Expense (66,399) (24,823) ............................... | |||
((91,222) | |||
. !.'...2..... | |||
.. | |||
Change in Net Position 66,691 2,787 69,478 Net Position, Beginning of Year 870,674 165,560 1,036,234 Adjustments to Beginning Net Position Net Position, Beginning of Year, as Restated 870,674 165,560 1,036,234 Net Position, End of Year $ 937=65 $ 168,347 $ 1,105,712 48 1 University of Florida | |||
2013-2014 Annual Financial Report Department of Housing Transportation and and Residence Parking Services Education CONDENSED STATEMENT OF NET POSITION Assets Current Assets $ 8,006,720 $ " 2,423,077 Capital Assets, Net 37,284,943 123,451,973 Other Noncurrent Assets 8,444,173 34,317,019 Total Assets 53,735,836 160,192,069 liabilities Current Liabilities 3,280,285 12,877,118 Noncurrent Liabilities 20,854,410 87,212,297 Total Liabilities 24,134,695 100,089,415 | |||
......... .:........... | |||
............ | |||
......... | |||
Net Position Net Investment in Capital Assets 16,293,447 6,*Q27,004 Restricted 8,413,774 150,235 Unrestricted 4,893,920 (6,074,585) | |||
Total Nat Position $ 29,601,141 $ 60,102,654 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues (Expenses): | |||
Operating Revenues $ 22,713,921 $ .52,304,777 Depreciation Expense (2,329,606) (4,244,004) | |||
Other Operating Expenses (16,120,771) (39,921,633) | |||
Operating Income 4,263,544 8,139,140 Nonoperating Revenues (Expenses): | |||
Investment Income 181,295 594,516 Interest on Capital Asset-Related Debt (1,068,428) (4,882,718) | |||
Other (781,151) (2,299,104) | |||
Transfers (3,550,742) .4,070,573 Net Nonopereting Revenues (Expenses) (5,219,026) (2,516,733) | |||
Change in Net Position (955,482) 5,622,407 Net Position, Beginning of Year 30,556,623 54,480,247 Not Position, End of Year $ 29,601.141 $ 60,102,664 CONDENSED STATEMENT OF CASH FLOWS Net Cash Provided (Used) by: | |||
Operating Activities $ 7,140,487 $ .. 13,963,577 Noncapital Financing Activities (2,429,555) (8,036,469) | |||
Capital and Related Financing Activities (4,261,119) 4,361,215 Investing Activities (453,039) (11,967,134) | |||
Net Decrease in Cash and Cash Equivalents (3,226) .(1,678,811) | |||
Cash and Cash Equivalents, Beginning of Year 3,226 S .......... 3,006,107 1.320o6 Cash and Cash Equivalents, End of Year $1I,327,296 | |||
$ _______ | |||
A Component Unit of the State of Florida 1 49 | |||
Other Required Supplementary Information UAALosa Actuarial Actuarial Accrued Percentage Actuarial Value of Liability (AAL) Unfnded Funded Covered of Covered Valuation Assets (1) AM. (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (aib) (c) ((b-a)/c) 7/1/2009 $ - 455,677 $ 455,677 0% $ 948,375 48% | |||
7/11/2011 643,742 643,742 0% 996,686 65% | |||
7/1/2013 663,395 663,395 0% 1,072,984 62% | |||
(1)The entry-age cost actuarial method is used by the University. | |||
Notes to Required Supplementary Information: | Notes to Required Supplementary Information: | ||
Scbedule of Funding Progress -Otlher Postm owineIt Benerft Plan The July 1, 2013, unfunded actuarial liability of $663.4 million was higher than the July 1,2011, liability of $6433 million due to several factors. While there were fewer retirees and the healthcare trend rates are lower, the rising age of retirees and the impact of the potential excise tax from the Affordable Care Act increased the implicit rate subsidy and offset the decreasing factors. | Scbedule of Funding Progress - Otlher Postm owineIt Benerft Plan The July 1, 2013, unfunded actuarial liability of $663.4 million was higher than the July 1,2011, liability of $6433 million due to several factors. While there were fewer retirees and the healthcare trend rates are lower, the rising age of retirees and the impact of the potential excise tax from the Affordable Care Act increased the implicit rate subsidy and offset the decreasing factors. | ||
Supplemental Information 2013-2014 Annual Financial Report~q#~<~ ~.:06-Number of Recipients | |||
Tuition, Trusts, Clubs, Service Organizations, etc.TOTAL OTHER SCHOLARSHIPS AND GRANTS | Supplemental Information 2013-2014 Annual Financial Report | ||
. | ~q#~<~ ~. | ||
:06-Number of Aid Recipients Disbursed Federal Programs Pell Grants 12,133 $ 47,492,404 Supplemental Educational Opportunity Grants 2,188 2,088,801 Noyce-Scholarship Loans 5 50,000 TEACH Grant 10 35,431 Perkins Student Loans 1,599 4,773,863 Health Professions Student Loans (PCL, LDS, HPSL) 87 716,603 Direct Loans 19,870 249,035,362 TOTAL FEDERAL FINANCIAL AID ADMINISTERED 35,892 $ 304,192,464 State Programs Loans: | |||
University of Florida Short-Term Loans .519 $ 647,503 Student Aid For Education (SAFE) Loans 94 222,545 University of Florida Long-Term Loans 164 648,779 Total Loans Administered 777 1,518,827 Scholarships and Grants: | |||
State of Rorida Financial Aid Program 28,915 .66,039,123 Lottery Trust Grant Funded Waivers 403 1,548,751 Total State Scholarships and Grants Administered 29,318 " 67,587,874 TOTAL STATE FINANCIAL AID ADMINISTERED 30,095 $ 69,106,701 Other Scholarships and Grants Institutional Grants: | |||
College Awarded Scholarships 11,639 $ 38,894,000 Graduate Tuition Remission Waivers 2,775 20,119,607 General Scholarships 7,924 20,026,210 Total Institutional Scholarships and Grants 22,338 79,039,817 Custodial Scholarships: | |||
Tuition, Trusts, Clubs, Service Organizations, etc. 4,386 9,805,459 TOTAL OTHER SCHOLARSHIPS AND GRANTS 26,724 $ 88,845276 Fee Waivers Non-Resident Tuition Waivers 453 $ 5,560,207 Other Waivers 5,303 34,411,802 TOTAL FEE WAIVERS ADMINISTERED 5,756 $ 39,972,009 TOTAL FINANCIAL AID ADMINISTERED $ 502,116,450 A Component Unit of the State of Florida I 51 | |||
AUDITOR GENERAL STATE OF FLORIDA DAVID W. MARTIN, CPA G74 Claude Pepper Building PHONE: 850-412-2722 AUDITOR GENERAL Peppe rStreet 111 West Madison FAX: 850-488-6975 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 GOVERNMENTAUDITING 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 Governiment 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, 2014, 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 16, 2014, 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. This 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 deicien',in internal cont/,v 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 mateiialweakness 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 significant de/icienq, 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. | |||
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. | |||
52 1 University of Florida | |||
2013-2014 Annual Financial Report 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 Goverument Auditing Standards. | |||
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 GOVERNMENT AUDITING 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 Auditing 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 16, 2014 Audit Report No. 2015-074 A Component Unit of the State of Florida 1 53 | |||
Executive Officers Principal Finance and Accounting Officials Dr. J. Bernard Machen President Xim C 5imnso, Interim Assistant Vice President and University Controller Jane Adams Vice President for University Relations Brad S. Stacts Assistant Vice President for Contracts and Grants Accounting Services Elias G. Eldayrie Vice President and Chief Information Officer Pauia Varnes Fussed Senior Associate Controller for University Disbursement Services, Vice President for Human Resource Services Asset Management, and Cost Analysis Dr.Joseph Glover Kathleen M. Tiliett Provost and Senior Vice President for Academic Affairs Senior Associate Controller for General Accounting, Financial Reporting, Payroll and Tax Services Drn -avid S. Guzick Senior Vice President for Health Affairs Alan M. West Senior Associate Controller for University Bursar and Treasury Management Jamie Lewis Ke&th Vice President and General Counsel David E. Kratzer Vice President for Student Affairs In loving memory of Dr. Charfes E, Lane Senior Vice President and Chief Operating Officer Sheela Moudgil, CPA | |||
:." Associate.Controller Michael V, McKee Interim Vice President and Chief Financial Officer GeherdlI'Accountifig | |||
..and Financial Reporting Thomas .J, Mitchell Vice President for Development and Alumni Affairs Finance and Accounting A Dedicated and Valued Colleague, Dr. David D_ Norton , Alurnnu'l and Friend Vice President for Research Dr. Jack M. Payne Senior Vice President for Agriculture and Natural Resources Curtis A. Reynolds Vice President for Business Affairs 54 1 University of Florida | |||
University of Florida Board of Trustees Dr. Stevo M, FIcON David L, Brando Chnraophor 7 Cot Chair Palm Horbar, aL t wmndcrnŽr L UttwLrrd ,ake Lure, NC Bo)ca Paton, FL ChIrles B Brwoths James W. Heasertce Or Prosierp motor PoOerl Dr. Jason J. Pasenberrp UV$'tNC 5 ' of UIorid~ na. Alochoa. a Porolhi tO tow rho Juliet M. pou*hac David °"Themea CcnP-rsity tf I' Plan tation, FL Windermnorr, FL DESIGN: | |||
University Relations Creative Services PHOTOGRAPHY: | |||
University Relations, Lester Photography, Gaylor Photography, photos~com | |||
1i}} | |||
Revision as of 12:43, 31 October 2019
| ML15112A817 | |
| Person / Time | |
|---|---|
| Site: | 05000083 |
| Issue date: | 03/25/2015 |
| From: | Shea B Univ of Florida |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| TAC ME1586 | |
| Download: ML15112A817 (66) | |
Text
UFUNIVERSITY9f.
College of Engineering PO Box 116134 UF Training Reactor Facility Gainesville, FL 32611 352-294-2104 bshea@ufl.edu March 25, 2015 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 Supplemental Response 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 (ML1321A048). In September 2014, the UFTR provided updated financial information (ML14255A368).
Attached is additional updated financial information, including a new Statement of Intent letter.
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 March 25, 2015.
Brian Shea Reactor Manager 035 The Foundationfor The Gator Nation An Equal Opportunity Institution
UFUNIVERSITY f Office of the Vice President 1 Tigert Hall and Chief Financial Officer P 0 Box 113240 Gainesville, FL 32611-3240 352-392-2402 Telephone 352-846-3546 Fax Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: DOCKET 50-83, STATEMENT OF INTENT As Chief Financial Officer of the University of Florida, I exercise express authority and responsibility to request from the State of Florida funds for decommissioning activities associated with operations authorized by U.S. Nuclear Regulatory Commission License No. R-
- 56. This authority is established by the University of Florida Board of Trustees resolution R01-1.
Within this authority, I intend to r~quest that funds be made available when necessary in the amount of $4.5 million to decommission the University of Florida Training Reactor, located in Gainesville, Florida (the current decommissioning cost estimate is $4.03 million). I intend to request and obtain these funds sufficiently in advance of decommissioning to prevent delay of required activities.
A copy of Resolution R01-1 is attached as evidence that I am authorized to represent the University of Florida in this transaction.
Michael V. McKee Interim Vice President and Chief Financial Officer University of Florida February 17, 2015
Attachment:
As stated cc: Dean - College of Engineering UFTR Facility Director UFTR Reactor Manager UFTR Licensing Engineer The Foundationfor The Gator Nation An Equal Opportunity Institution
UNIVERSITY OF FLORIDA BOARD OF TRUSTEES RESOLUTION Number: R01-1
Subject:
Presidential Authority Date: September 7, 2001 The University of Florida Board of Trustees hereby resolves:
(1) That the authority of the President of the University of Florida under current law, including the authority to enter into contracts on behalf of the University Board of Trustees, is hereby affirmed; and (2) That the President is hereby authorized to approve travel under Section 112.061, F.S., and to take routine administrative actions on behalf of the University of Florida Board of Trustees under the Florida Administrative Procedures Act, Chapter 120, F.S., which shall not include the approval of University rules.
The President is authorized to further delegate to University personnel the authority described as long as such delegation is in writing and a copy is filed in the General Counsel's Office.
This affirmation and authorization is effective as of July 1, 2001.
Resolution
KUFUNIVERSITY of College of Engineering PO Box 11.6134 Uiniversity qf Florida Training Reactor Gainesville, FL 32611-6134 352-294-2104 August 19, 2014 MEMORANDUM TO Decommissioning File _
FROM: Brian Shea, Reactor Managerr
SUBJECT:
Annual Estimate of UFTR Decommissioning Cost per 10 CFR 50.75 The estimated cost for the complete decommissioning of the University of Florida Training Reactor (UFTR) as of August 2014 is $4.03 million (CPI-U for July 2014). To meet the requirements of 10 CFR 30.3 and 50.75 the decommissioning cost estimate is updated periodically to reflect any changes. The base cost estimate, in 1982 dollars, is adjusted based on changes in the Consumer Price Index (CPI) and Low Level Waste Disposal Adjustment Factor (Bx).
Consumer Price Index Adjustment Factor (Fcpi)
Consumer Price Index data can be found online at the US Department of Labor, Bureau of Labor 6 Statistics. Using the CPIfor all urban consumers, US city average, all items (Base 1982), an adjustment factor of Fcpl,, is calculated by finding the ratio of the current CPI-U to the CPI-U for December 1982 as follows:
C PI1 238.25=2.441 C PI Dec1982 97.6 where, x corresponds to the current month and year.
Waste Burial Adjustment Factor (FB)
A Waste Burial Adjustment Factor, normalized to 1986 values, is found in Table 2-1 of the U.S. Nuclear Regulatory Commission: Report on Waste Burial Charges (NUREG-1307, Rev. 15). First, the base is adjusted from 1986 to 1982 as follows:
B 1982 ýnB 1986/(C P IDec1982 1/(976. )=0.883 C P 'Dec1986 97.6 Then the Waste Burial Adjustment Factor for a given year is calculated as follows:
B* 14.160 IF= -X=1.6 = 16.032 B- B 1982 0.883 where, x corresponds to the year of the most recently published adjustment factor The Foundationfor The Gator Nation
Estimated Decommissioning Cost Decommissioning Cost = FB , (1982 Cost of Radioactive Waste disposal) +
Fcpi (1982 Total Cost Estimate - 1982 Cost of Rad Waste Disposal) 14160238
.148160
-
(199,00)+0 25 541,000-199,000)=4"03
( million Attachments cc: Facility Director (memo only)
RSRS Members (memo only)
Table 2-1. Values of B, as a Function of LLW Burial Site, Waste Vendor, and Year(a) 8BVal uesi for.,outh CaoiaSt B. Values for Generic LLW B, Valu, for Washington : lteb
'5 K Disposal Site1 'l Atlantic Comipact., <1.'iNon-Atlantic Compact~d)
. . .: . :. : : . . . , . . . . . . .. . .
Combinatlionp Combination of Combination of Combination of Compact-, Compact-.. Comnpact-'," Compact. Compact- Compact- ,IICompact-Affiliated ;Affiliated and ~Affiliated" t .Affiliated' and, I;:,Affiliated. Affiliated and" Affiliated'1 'Affilited 'and' Facility Oniy~g) Facility Oniy~q' 'Non-Compact' Fa-cility Only!g)' Non -Cornvact Facility Only ~". act' Non.Cr
<FS'6lg Facilityl' Year PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR PWR BWR 2012 7.335 6.704 7.375 6.076 30.581 27.295 13.885( ý.16ý0 NA NA NA NA 30.581 27.295 13.885 14.160 2010 8.035 7.423 6.588 5.458 27.292 24.356 12.280 12.540 NA NA NA NA 27.292 24.356 12.280 12.540 2008 8.283 23.185 5.153 20.889 25.231 22.504 9.872 11.198 NA NA NA NA 25.231 22.504 9.872 11.198 2006 6.829 11.702 3.855 9.008 22.933 20.451 8.600 9.345 23.030 20.813 8.683 10.206 NA NA NA NA 2004 5.374 13.157 3.846 11.755 19.500 17.389 7.790 8.347 21.937 17.970 7.934 8.863 NA NA NA NA 2002 3.634 14.549 5.748 15.571 17.922 15.988 9.273 8.626 18.732 16.705 9.467 8.860 NA NA NA NA (a) The values shown in this table are developed in APPENDIX B, with all values normalized to the 1986 Washington PWR and BWR values by dividing the calculated burial costs for each site and year by the Washington site burial costs calculated for the year 1986.
(b) Effective 1/1193, the Washington site no longer accepted waste from outside the Northwest and Rocky Mountain Compacts.
(c) Effective 7/1/2000, rates are based on whether a waste generator is or is not a member of the Atlantic Compact.
(d) Effective 7/1/2008, the South Carolina site no longer accepted waste from outside the Atlantic Compact.
(e) B, values for the generic site are assumed to be the same as that provided for the Atlantic Compact, for lack of a better alternative at this time.
(f) Effective with NUREG-1 307, Revision 8 (Ref. 3), an alternative disposal option was introduced in which the bulk of the LLW is assumed to be dispositioned by waste vendors and/or disposed of at a non-compact disposal facility.
(g) Effective with NUREG-1 307, Revision 15, the nomenclature for the two disposal options, referred to as "Direct Disposal" and 'Direct Disposal with Vendors" in previous revisions of NUREG-1 307, is changed to "Compact-Affiliated Disposal Facility Only" and "Combination of Compact-Affiliated and Non-Compact Disposal Facilities" to better describe these options.
4 NUREG-1 307
Table 24. Historical Consumer Price Index for All Urban Consumers (CPI-U)ý U. S. city average, all items-Continued (1982-84=100, unless otherwise noted)
Year Jan. Feb. Mar. Apr. May June f July Aug. Sep. Oct. Nov. Dec.
1970 37.8 38.0 38.2 38.5 38.6 38.8 39.0 39.0 39.2 39.4 39.6 39.8 1971 39.8 39.9 40.0 40.1 40.3 40.6 40.7 40.8 40.8 40.9 40.9 41.1 1972 41.1 41.3 41.4 41.5 41.6 41.7 41.9 42.0 42.1 42.3 42.4 42.5 1973 42.6 42.9 43.3 43.6 43.9 44.2 44.3 45.1 45.2 45.6 45.9 46.2 1974 46.6 47.2 47.8 48.0 48.6 49.0 49.4 50.0 50.6 51.1 51.5 51.9 1975 52.1 52.5 52.7 52.9 53.2 53.6 54.2 54.3 54.6 54.9 55.3 55.5 1976 55.6 55.8 55.9 56.1 56.5 56.8 57.1 57.4 57.6 57.9 58.0 58.2 1977 58.5 59.1 59.5 60.0 60.3 60.7 61.0 61.2 61.4 61.6 61.9 62.1 1978 82.5 62.9 63.4 63.9 64.5 65.2 65.7 66.0 66.5 67.1 67.4 67.7 1979 68.3 69.1 69.8 70.6 71.5 72.3 73.1 73.8 74.6 75.2 75.9 76.7 1980 77.8 78.9 80.1 81.0 81.8 82.7 82.7 83.3 84.0 84.8 85.5 86.3 1981 87.0 87.9 88.5 89.1 89.8 90.6 91.6 92.3 93.2 93.4 93.7 1982 94.3 94.6 94.5 94.9 95.8 97.0 97.5 97.7 97.9 98.2 98.0 1983 97.8 97.9 97.9 98.6 99.2 99.5 99.9 100.2 100.7 101.0 101.2 101.3 1984 101.9 102.4 102.6 103.1 103.4 103.7 104.1 104.5 105.0 105.3 105.3 105.3 1985 105.5 106.0 106.4 106.9 107.3 107.6 107.8 108.0 108.3 108.7 109.0 109.3 1986 109.6 109.3 108.8 108.6 108.9 109.5 109.5 109.7 110.2 110.3 110.4 110.5 1987 111.2 111.6 112.1 112.7 113.1 113.5 113.8 114.4 115.0 115.3 115.4 115.4 1988 115.7 116.0 116.5 117.1 117.5 118.0 118.5 119.0 119.8 120.2 120.3 120.5 1989 121.1 121.6 122.3 123.1 123.8 124.1 124.4 124.6 125.0 125.6 125.9 126.1 1990 127.4 128.0 128.7 128.9 129.2 129.9 130.4 131.6 132.7 133.5 133.8 133.8 1991 134.6 134.8 135.0 135.2 135.6 136.0 136.2 136.6 137.2 137.4 137.8 137.9 1992 138.1 138.6 139.3 139.5 139.7 140.2 140.5 140.9 141.3 141.8 142.0 141.9 1993 142.6 143.1 143.6 144.0 144.2 144.4 144.4 144.8 145.1 145.7 145.8 145.8 1994 146.2 146.7 147.2 147.4 147.5 148.0 148.4 149.0 149.4 149.5 149.7 149.7 1995 150.3 150.9 151.4 151.9 152.2 152.5 152.5 152.9 153.2 153.7 153.6 153.5 1996 154.4 154.9 155.7 156.3 156.6 156.7 157.0 157.3 157.8 158.3 158.6 158.6 1997 159.1 159.6 160.0 160.2 160.1 160.3 160.5 160.8 161.2 161.6 161.5 161.3 1998 161.6 161.9 162.2 162.5 162.8 163.0 163.2 163.4 163.6 164.0 164.0 163.9 1999 164.3 164.5 165.0 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 2008 211.080 211.693 2 13.528 214.823 216.632 218.815 219.964 219.086 218.783 2 16.573 212.425 210.228 2009 211. 143 212.193 212.709 213.240 213.856 215.693 215.351 215.834 215.969 216.177 2 16.330 215.949 2010 2 16.687 216. 74 1 217.63 1 218.009 2 18.178 217.965 218.011 218.312 218.439 218.711 218.803 219.179 2011 220.223 221.309 223.467 224.906 225.964 225.722 225.922 226.545 226.889 226.42 1 226.230 225.672 2012 226.665 227.663 229.392 230.085 229.815 229.478 229.104 230.379 231.407 231 .317 230.22 1 229.601 2013 230.280 232.166 232.773 232.53 1 232.945 233.504 233.596 233.877 234.149 233.546 233.069 233.049 2014 233.916 234.78 1 236.293 237.072 237.900 238.343 See footnotes at end of table.
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, July 2014
[1982-84=100, unless otherwise notedi Relative Unadjusted indexes Unadjusted percent Seasonally adjusted percent impor- change change Expenditure category tance Jul. Jun. Apr. May Jun.
Jun. Jul. Jun. Jul. 2013- 2014- 2014- 2014- 2014-2014 2013 2014 2014 Jul. Jul. May Jun. Jul.
1 2014 2014 2014 2014 2014 A ll item s ............................................. 100.000 233.596 238.343 2.0 0.0 0.4 0.3 0.1 F o o d .............................................. 13.837 237.001 242.326 2.5 0.3 0.5 0.1 0.4 Food at home ............................. 8.188 233.591 239.147 239.820 2.7 0.3 0.7 0.0 0.4 Cereals and bakery products ............ 1.122 271.279 270.860 271.993 0.3 0.4 -0.1 -0.2 0.4 Meats, poultry, fish, and eggs ........ '... 1.922 235.859 252.865 253.767 7.6 0.4 1.4 0.2 0.3 Dairy and related products' ...... . . . . . . . . 0.865 215.920 224.522 225.140 4.3 0.3 0.6 -0.4 0.3 Fruits and vegetables ..................... 1.348 287.773 295.139 293.535 2.0 -0.5 1.1 -0.3 0.0 Nonalcoholic beverages and beverage m aterials .................................. 0.928 165.412 164.700 165.211 -0.1 0.3 0.4 0.0 0.5 Other food at home ........................ 2.004 205.872 205.996 207.390 0.7 0.7 0.3 0.1 0.7 Food away from home' ...................... 5.649 243.409 248.445 249.210 2.4 0.3 0.2 0.2 0.3 E ne rgy ............................................ 9.799 251.370 259.858 257.907 2.6 -0.8 0.9 1.6 -0.3 Energy commodities ......................... 5.825 314.380 322.920 318.294 1.2 -1.4 0.6 3.0 -0.3 Fue l o il' ..................................... 0.167 359.780 370.317 367.725 2.2 -0.7 -1.4 -1.7 -0.7 Motor fuel ................................... 5.566 311.757 319.692 314.901 1.0 -1.5 0.8 3.3 -0.3 Gasoline (all types) ................... 5.480 310.886 318.334 313.514 0.8 -1.5 0.7 3.3 -0.3 Energy services 2 ............ . . . . . . . .. . . . . . . . . 3.974 202.087 211.038 211.563 4.7 0.2 1.4 -0.4 -0.4 E lectricity 2 .............. . . . . . . . . . . . . . . . . . . . . 3.084 209,538 217.529 217.930 4.0 0.2 2.3 0.2 -0.3 Utility (piped) gas service2 ....... . . . . . .. . . 0.890 177.356 188.769 189.659 6.9 0.5 -1.7 -2.6 -0.4 All items less food and energy ................ 76.364 233.792 238.157 238.138 1.9 0.0 0.3 0.1 0.1 Commodities less food and energy com m odities ................................ 19.379 146.872 147.087 146,452 -0.3 -0.4 0.1 0.1 0.0 Apparel ...................................... 3.383 124.215 127.302 124.645 0.3 -2.1 0.3 0.5 0.2 New vehicles ............................... 3.487 145.726 146.067 146.086 0.2 0.0 0.2 -0.3 0.3 Used cars and trucks ...................... 1.678 152.554 151.978 152.857 0.2 0.6 -0.1 -0.4 -0.3 Medical care commodities ......... 1.713 334.673 343.224 344.687 3.0 0.4 0.5 0.7 0.3 Alcoholic beverages ....................... 0.990 235.022 236.569 236.387 0.6 -0.1 0.0 -0.1 -0.1 Tobacco and smoking products1 ........ 0.700 881.770 907.216 904.614 2.6 -0.3 0.2 1.0 -0.3 Services less energy services .............. 56.985 286.617 293.668 294.068 2.6 0.1 0.3 0.1 0.1 S helte r ....................................... 31.840 263.451 270.314 271.115 2.9 0.3 0.3 0.2 0.3 Rent of primary residence 2..... . . . . . . . 6.913 267.482 275.321 276.248 3.3 0.3 0.3 0.3 0.3 Owners' equivalent rent of residences' 3 .......................... 23.635 270.537 277.256 277.886 2.7 0.2 0.2 0.2 0.3 Medical care services ..................... 5.813 453.773 464.960 465.166 2.5 0.0 0.3 0.0 0.1 Physicians' services2 ........ . . . . . . . . . . . 1.555 354.775 359.056 358.585 1.1 -0.1 0.4 -0.3 -0.2 Hospital services 2 ,' ..................... 1.800 263.698 278.695 279.587 6.0 0.3 0.3 0.2 0.4 Transportation services ................... 5.589 281.080 289.018 286.239 1.8 -1.0 1.0 0.1 -0.7 Motor vehicle maintenance and repa ir . ......... ....................... 1.138 262.229 265.656 266.282 1.5 0.2 0.2 0.2 0.2 Motor vehicle insurance ................ 2.199 420.073 435.654 436,342 3.9 0.2 0.6 0.2 0.2 Airline fare................... 0.825 315.789 342.697 315.012 -0.2 -8.1 5.8 0.4 -5.9 Not seasonally adjusted.
1Not seasonally adjusted.
2 This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
3 Indexes on a December 1982=100 base.
4 Indexes on a December 1996=100 base.
NOTE: Index applies to a month as a whole, not to any specific date.
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As the year draws to a close, the Universityof Floridais on sound financialfooting - well-preparedto move forward while deepening its positive impact on the community, country and world.
W ith the economic downturn in the rearview mirror, the Florida Legislature this spring provided more than $100 million in additional funding to UF. This came on the heels of the Legislature's 2013 restoration of S300 million to State universities' budget cut in the previous year.
What's more, the University broke its annual fundraising record for the second year in a row, netting $215.3 million for the 2013-14 fiscal year.
In the future, we will need to raise our tuition to generate the revenue enjoyed by our peer universities, most of which have far higher tuitions. Still, these positive financial trends are already having benefits throughout the University.
This may be most visible in the Preeminence Plan, our effort to rise among the nation's top public universities through advancing UF research and scholarship, At the heart of this plan is our ongoing campaign to hire midcareer and highly accomplished research faculty in areas of particular promise - or who have the potential to elevate current UF strengths to the next level.
Un[verý,ity of Floi idi
2013-2014 Annual Financial Report By early November 2014, UF had brought on As a result, UF continued to focus on board 60 of these accomplished new faculty, developing Innovation Square, the public-about half of the University's expected total private partnership created in 2009 to nurture preeminence hires. Hailing from institutions Gainesville's technology community and join as diverse as the University of Pennsylvania, campus with downtown.
UNC-Chapel Hill and Utrecht University in the Among other milestones from the past year:
Netherlands, their expertise ranges from food security to early childhood education to creative Signet Enterprises became the first private writing to archaeology to biomedicine. company to construct a bricks-and-mortar building at Innovation Square. Infinity Hall, With the State continuing to back UF as Florida's to open in September 2015, will house online university, we also broadened our efforts more than 300 entrepreneurially minded in online education.
undergraduates under joint UF-Signet UF Online, among the nation's first fully online management.
programs for undergraduates, began its Zeeko joined Curtco Media, Azalea Health, first full academic year in fall 2014. It has 11 BioMonde, Mobiquity and Mindtree among undergraduate degree programs, including the outside technology companies that biology, geology and sports management.
have opened facilities in Innovation Square, This effort remains very much a work in Together, these companies have created progress, with many unknowns, from what types more than 300 jobs. Many are both high-of students will find online education appealing paying and high-skill positions.
to what programs will prove most popular. But
- More than two dozen spinoffs filled there is no question that online education offers the Florida Innovation Hub technology unique opportunities to grow UF's enrollment incubator, while companies that outgrew the and extend P college education to those who........
Hub continued to expand in other locations cannot come to our campus.
around Gainesville.
A third area.of advancement came with the I will step down in December after serving as continued development of the core curriculum UF's president for 11 years. While we have faced for undergraduates.
our share of financial challenges, especially Building on the "What is the Good Life?" class durin~the downturn, I feel optimistic about.
required for all first-year students, UF began our current position and our path ahead. With piloting two new core classes this fall - the first adequate resources, there is no limit to what revolving around climate change; the second, our faculty can achieve in'education, research data analysis. The University expects to begin and scholarship - changing students' lives and offering thesescourses to all undergraduates helping to bring.prosperity, understanding next year, taking another step toward a and equity to the world. It's a great time to signature undergraduate program that is both be a Gator, and I wish the University and the unique to UF and shared among all students. community the very best!.
The Preeminence Plan, UF Online and the core curriculum will all help to raise UF's profile among its peer universities - but building a thriving creative community surrounding the J. Bernard Machen University is also central to this goal. President, University of Florida
Knowledge by the Numbers College/Scool 2013 2012 2011 2010 2009 Accounting 889 857 865 905 871 Agricultural and Life Sciences 4,828 4,835 4,955 4,940 4,640 Building Construction 345 383 391 499 581 Business Administration 5,396 4,985 .4,681 4,728 4,947 Dentistry 402 385 389 378 379 Design, Construction, and Planning 883 855 896 899 899 Division of Continuing Education (A) 113 141 179 215 259 Education 1,577 1,732 ,1,749 1,88613 1,919 Engineering 8,774 8,716 8,454 8,240 7,880 Fine Arts 1,322 1,294 1,256 1,309 1,284 Forest Resources and Conservation - - - - 222 Health and Human Performance 1,979. 1,973 2,047 2,008 1,908 High School 71. 57 52 47 44 Interdisciplinary Ecology 101 104 116 127 135 Journalism and Communications 2,710 2,693 2,540 2,516 2,663 Law 1,071 1,105 1,118 1,191 1,263 Liberal Arts and Sciences 12,221 12,514 12,673 12,817 13,368 Medicine 806 823 '862 853 967 Multiple-College Program 2 1 1 2 Natural Resources and Environment 107 120 155 154 158 Nursing 1,045 1,162 1,170 1,090 1,188 Pharmacy 850 847 823 836 761 Pharmacy Doctor 1,545 1,584 1,686 1,752. 1,891 Physician Assistant Program 121 119 119 119 119 Public Health & Health Professions 2,315 2,213 2,122 2,139 1,971 Veterinary Medicine 674 648 542 530 525 SUB-TOTAL 50,147 50,145 49,841 50,179 50,844 Minus Concurrent Degree 52 59 56 63 60 TOTAL 50,095 50,086 49,785 50,116 50,784 (A)Includes Continuing Education and correspondence courses for students not enrolled ina college.
Source: UF Facts - UF Office of Institutional Planning and Research Dge . j0012011 2,44(5" 2009.10 Degree 2013-14 2012-13 2011-12 2010-11 2009-10 Bachelor's 8,515 8,245 8,600 8,685 9,302 Master's 4,174 3,929 3,924 3,878 3,751 Doctor of Philosophy 950 880 859 936 957 Doctor of Pharmacy 430 427 461 484 483 Juris Doctor 304 361 334 410 377 Doctor of Medicine 129 131 134 127 130 Doctor of Dental Medicine 83 79 82 83 91 Doctor of Veterinary Medicine 98 86 84 87 89 Specialist in Education 73
............... 88 71 2 .1..5........... .
1........4...... 70
. ................ 111 7 0 ................
10,56 14,226 14,549 14,760 15,291 TOTAL Source: Final degree information from the Degrees Awarded File - UF Office of Institutional Planning and Research 6 .
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2013-2014 Annual Financial Report In-State Enrollment by County - Fall 2013 Total In-State Enrollment:
40468 Pese rch Awards by Spons 1%
for 203-14 tisca E $465,296,894 Federal Agencies EFlorida State Agencies
$44,842,935 Corporations & Companies
$72,150,763 EFoundations
$86,071,558
& Non-Profits Local & Regional S $7,232,063 E $26,102,832 All Other Sources Total
$701,697,045 Visit Gator~oootutl.eiu to learn about the issues we're tackling:
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A Component Unit of the State of Florida 1 7
Introductionfrom the Vice President and Chief FinancialOfficer am pleased to present the University of Florida Austin Cary Learning Center, replacing the Austin Annual Financial Report for the fiscal year Cary Conference Center that burned down in ended June 30, 2014. This report provides useful 2011. Other construction projects completed information concerning the University's financial during the 2013-14 fiscal year included the position and activities for the year. The University Government House Renovation and Museum had a strong financial year as evidenced by a Exhibit projects located in historic St. Augustine.
net position of more than $2.49 billion, a 5.1%
Designed for undergraduate students and increase when compared to the 2012-13 fiscal students with disabilities, Cypress Hall, a new year. Management's Discussion and A:nalysis, financial statements, and notes to the financial single student residence building, is expected statements document the University's financial to be substantially complete in April 2015. The University's 25th residence hall, will add 255 success and health for this fiscal year.
bed spaces with rooms on the first floor to During the 2013-14 fiscal year, Noncapital State accommodate students with significant mobility Appropriations increased by 24.8%/, or $120.4 impairments.
million with $30 million received to advance the goal of reaching national preeminence and to On June 2, 2014, Governor Scott signed the State University System budget for the 2014-15 fiscal implement the State's online university program.
Tuition revenue increased a modest $6.3 million, year. This budget includes a significant increase in funding for higher education - including $200 or 1.8% for the fiscal year. The University continues to have one of the lowest costs of million for performance funding, of which the attendance of all public research universities University of Florida will receive $39.8 million.
nationwide and continues to be an excellent value The investment in performance funding marks the first time such a significant portion of for the investment.
funding has been directed toward rewarding Capital State Appropriations totaled $43.6 million, excellence and improvement. The budget also a S34.1million increase over the prior fiscal year ,includes nearly $16 million for the UF.Health of S9.5 million. The increase in Capital State, Cancer Center to support an effort to obtain Appropriations provided needed funds to address the National Cancer Institute (NCI) designation.
a number of deferred maintenance projects and We are encouraged by this additional funding to enable the University to continue to maintain its obtain the NCI designation and to help our State beautiful and historic campus. become a national lediaer in cancer tare.
Heavener Hall, completed in November 2014, The Office of the Vice President and Chief houses; for the first time, the undergraduate Financial Officer is committed to effectively program of the Warrington College of Business .manage the Universitys assets and facilitate the under one roof and provides 24/7 access for comprehensive business needs as the University its students. .This 57,000 square foot building rises to being a top ten public research university.
- features state-of-the~art technology, study rooms. and professional development centers.
The Heavener Hall project also allowed for the creation of anew, more prominent and pedestrian-friendly gateway into the University.
Michael V. McKee Of special note, April 5,.2014, marked the Interim Vice President and dedication and celebration of the newly built. Chief Financial Officer
AUDITOR GENERAL STATE OF FLORIDA DAVID W. MARTIN, CPA G74 Claude Pepper Building PHONE: 850-412-2722 AUDITOR GENERAL 111 West Madison Street FAx: 850-488-6975 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 Report on the Financial Statements We have audited the accompanying 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, 2014, 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'sResponsibility 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 preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility 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. The financial statements of the University of Florida Self-Insurance Program and the University of Florida Healthcare Education Insurance Company, blended component units, represent 5.7 percent, 5.6 percent, and 1.1 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 the blended and the aggregate discretely presented component units 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, are 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 GoernienItAuditing 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.
10 1 University of Florida
2013-2014 Annual Financial Report Opinions In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented component units as of June 30, 2014, 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 2012-13 fiscal year financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 20, 2013. In our opinion, the partial comparative information presented herein as of and for the fiscal year ended June 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Matters RequiredSupp/ementaO, Injbriation Accounting principles generally accepted in the United States of America require that MANAGEMENT'S DISCUSSION AND ANALYSIS and SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS PLAN, as listed in the table of contents, be presented to supplement tie 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, which 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.
0/her 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 University of Florida Overview, President's Message, Knowledge by the Numbers, Introduction from the Vice President and Chief Financial Officer, and 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 University of Florida Overview, President's Message, Knowledge by the Numbers, Introduction from the Vice President and Chief Financial Officer, and Supplemental Information for Financial Aid Administered have 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 them.
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 GOVERNMENTAUDITING 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 Government Auditing Standards in considering the University of Florida's internal control over financial reporting and compliance.
Respectfully submitted, David W. Martin, CPA Tallahassee, Florida December 16, 2014 Audit Report No. 2015-074 A Component Unit of the State of Florida 1 11
MANAGEMENT'S DISCUSSION AND ANALYSIS From the Vice Presidentand Chief FinancialOfficer Introduction And Background Financial Highlights The Management's Discussion and Analysis (MD&A) provides The University's assets totaled $3.2 billion at June 30, 2014.
an overview of the financial position and activities of the This balance reflects a $201.5 million, or 6.6%, increase University of Florida (the University) for the fiscal year ended from the 2012-13 fiscal year. The increase in assets resulted June 30, 2014, and should be read in conjunction with the primarily from a significant increase in construction projects financial statements and notes thereto. This overview is as well as temporary investments of proceeds from new required by Governmental Accounting Standards Board bonds. While total assets increased, liabilities also increased (GASB) Statement No. 35, Basic FinancialStatements - and by $81.7 million or 12.2%, totaling $754.0 million at June 30, Management's Discussion and Analysis - for Public Colleges 2014, primarily as a result of a $62.2 million increase in Capital and Universities, as amended by GASB Statements Nos. Improvement Debt Payable and a $40.9 million increase in 37 and 38. The MD&A, and financial statements and notes Other Postemployment Benefits Payable. The University's thereto, are the responsibility of University management. net position increased by $119.8 million, or 5.1%, resulting in 12 1 University of Florida
2013-2014 Annual Financial Report a year-end balance of $2.49 billion. Net position represents Net nonoperating revenues and expenses in the 2013-the residual interest in the University's assets after deducting 14 fiscal year increased $167.4 million. Noncapital State liabilities. The University's comparative total net position by Appropriations; Investment Income, Net of Expenses; and category for the fiscal years ended June 30, 2014, and 2013, Fair Value of Investments increased by $163.3 million due are shown in the following chart: to increased appropriations and an improving investment market.
$1,565 $1,554 The University had significant construction activity during
$1,600 the year. Construction began or continues on several major projects, including four that, when completed, will be capitalized at over $203.4 million: (1) Reitz Union Expansion
$1,200 and Renovation; (2) Chemical Biology Building - Chemistry; (3)
Harrell Medical Education Building; and (4) Heavener Hall -
$775 $695 School of Business Building.
$800
$400 Overview Of Financial~
$149 $119 tatementb
$0 Pursuant to GASB Statement No. 35, the University's financial Net Investment in Restricted Unrestricted report includes three basic financial statements: the Statement Capital Assets of Net Position; the Statement of Revenues, Expenses, and Changes in Net Position; and the Statement of Cash Flows.
The University's operating revenues totaled $1.7 billion for the The financial statements and notes thereto, encompass the 2013-14 fiscal year, representing a 2.5% increase over the University and its component units.
2012-13 fiscal year. Major components of operating revenues Based upon the application of criteria for determining are Student Tuition and Fees and Grants and Contracts. While component units, the University of Florida Self-Insurance Student Tuition and Fees, Net of Scholarship Allowances, Program (the Program), and the University of Florida increased $6.3 million or 1.8%, Nongovernmental Grants Healthcare Education Insurance Company (HEIC), are and Contracts revenue increased by $61.1 million, or 9.5%,
included within the University reporting entity as blended because of increased transfers from the component units.
component units. Additional information regarding the The following chart provides a graphical presentation of the blended component units is presented in Notes 1 and 19 to University's total revenues by category for the 2013-14 fiscal the financial statements.
year:
In addition, the University's basic financial statements include discretely presented component units categorized as follows:
Direct-Support Organizations - These are separate, not-for-profit corporations organized and operated exclusively to assist the University in achieving excellence by providing supplemental resources from private gifts, bequests, and valuable education support services.
Health Science Center Affiliates - These are the several corporations closely affiliated with the University of Florida J. Hillis Miller Health Science Center, including the Faculty Practice Plans.
Shands Hospital and Others - This includes Shands Teaching Hospital and Clinics, Inc., a not-for-profit corporation that is contractually obligated to manage, operate, maintain, and insure the hospital facilities in support of the programs of the Operating expenses totaled $2.5 billion for the 2013-14 fiscal Health Science Center at the University of Florida.
year, representing a $109.3 million or 4.7% increase compared to the 2012-13 fiscal year. The two largest categories Information regarding the discretely presented component contributing to this increase were Employee Compensation units, including summaries of their separately issued financial and Benefits, reflecting the increase in Other Postemployment statements, is presented in Notes 1, 2, 3, 6,9, 12, and 19 to the Benefits Payable, and Services and Supplies. financial statements. This MD&A focuses on the University, A Component Unit of the State of Florida 13
MD&A excluding the discretely presented component units. MD&A activity, categorized as operating and nonoperating. Revenues information regarding the component units is included in and expenses are recognized when earned or incurred, their separately issued audit reports, if reporting under regardless of when cash is received or paid. The following GASB standards. Component units reporting under Financial table summarizes the University's activity for the 2013-14 and Accounting Standards Board (FASB) standards do not include 2012-13 fiscal years:
an MD&A in their audit reports.
The financial statements characterize revenues and expenses as either operating or nonoperating. The principal component of operating revenues is Grants and Contracts ($1.1 billion). 2013-14 2012-13 The principal component of operating expenses is Employee Operating Revenues $ 1,659.9 $ 1,618.8 Compensation and Benefits ($1.7 billion). A significant portion of Operating Expenses J2,455.91, (2,346.6) the University's anticipated, recurring resources is considered nonoperating as defined by GASB Statement No. 35. The Operating Loss (796.0) (727.8) principal component of nonoperating revenues for the fiscal Net Nonoperating Revenues 854.5 687.1 year ended June 30, 2014, is Noncapital State Appropriations
($605.9 million). Recurring nonoperating expenses consist Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 58.5 (40.7) primarily of Interest on Capital Asset-Related Debt.
Other Revenues, Expenses, Gains, or Losses 61.3 23.4 (17.3)
Statement Of Net Position Increase (Decrease) in Net Position 119.8 The Statement of Net Position reflects the assets and liabilities Net'Position, Beginning of Year 2,369.0 2,386.3 of the University, using the accrual basis of accounting, and Net Position, End of Year $ 2,488.8 $ 2,369.0 presents the financial position of the University at a specified time. Net position, the difference between total assets and total liabilities, is one indicator of the University's current financial condition. The changes in net position that occur over Operating Revenues time indicate improvement or deterioration in the University's GASB Statement No. 35 categorizes revenues as either financial condition. The following table summarizes the operating or nonoperating. Operating revenues generally University's assets, liabilities, and net position at June 30:
result from exchange transactions where each of the parties to the transaction either gives or receives something of equal or similar value. The following table summarizes the operating revenues by source that were used to fund operating activities 2014 2013 during the 2013-14 and 2012-13 fiscal years:
Assets:
Current Assets $ 1,338.5 $ 1,213.4 Capital Assets, Net 1,714.7 1,686.3 Other Noncurrent Assets 189.6 141.6 Total Assets _ 3,041.3 2013-14 2012-13 Liabilities:
Current Liabilities 214.9 244.1 Grants and Contracts $ 1,115.7 $ 1,079.9 Noncurrent Liabilities 539.1 428.2 Student Tuition and Fees, Net of Total Liabilities 754.-0 672.3 Scholarship Allowances 358.7 352.4 Sales and Services of Auxiliary Enterprises 129.9 131.4 Net Position: Sales and Services of Net Investment in Capital Assets 1,565.3 1,554.4 Educational Departments 52.0 51.6 Restricted 774.9 695.3 Other 3.6 3.5 Unrestricted 148.6 119.3 Total Operating Revenues $ 1,659.9 $ 1,618.8 Total Net Position $ 2,488.8 $ 2,369.0 Statement Of Revenues, Operating Expenses Expenses are categorized as operating or nonoperating. The Expenses, And Changes majority of the University's expenses are operating expenses in Net Positio n as defined by GASB Statement No. 35. GASB gives financial reporting entities the choice of reporting operating expenses in The Statement of Revenues, Expenses, and Changes in Net the functional or the natural classifications. The University has Position presents the University's revenue and expense chosen to report the expenses in their natural classifications 14 University of Florida
14 wt; POW lp
2013-2014 Annual Financial Report on the Statement of Revenues, Expenses, and Changes in Net Position and has displayed the functional classifications below No openat4"g Revenues and in the notes to the financial statements. The following And Expe 3ses table summarizes the operatina expenses for each method of Certain revenue sources that the University relies on to classification for the 2013-14 and 2012-: L3 fiscal years:
provide funding for operations, including Noncapital State Appropriations, certain gifts and grants, and investment income, are defined by GASB as nonoperating. Nonoperating Natural Classifications 2M13414 2012-13 expenses include capital financing costs, other costs related to capital assets, and transfers to component units.
Employee Compensation and Benefits $ 1,724.9 $ 1,619.9 Services and Supplies 472.5 480.8 The University experienced an increase in State Appropriations Depreciation 123. 121.4 revenue and investment income, while interest on capital Scholarships, Fellowships and Waivers
- 78.4 82.0 Utilities and Communications 62.8 64.7 asset-related debt increased. Noncapital Grants, Contracts, Self-Insured Claims and Expenses (5.8) (2.2) and Gifts decreased slightly and the net effect of these changes
$ 2,455.9 $ Z increased net nonoperating revenues by $167.4 million. The Total Operating Expenses
. - following summarizes the University's nonoperating revenues and expenses for the 2013-14 and 2012-13 fiscal years:
Functional Classifications 201344 2012-13 Instruction S 686.8 $ 650.9 Research 584.7 582.4 Public Service 432.1 429.1 2013-14 2012-13 Academic Support 167.2 154.3 Institutional Support 162.3 130.6 S 605.9 123.1 121.4 Noncapital State Appropriations $ 485.5 Depreciation Federal and State Student Financial Aid 117.0 114.1 Auxiliary Operations 112.3 108.6 Noncapital Grants, Contracts, and Gifts 82.0 84.1 Operation and Maintenance of Plant 94.9 96.5 Investment Income, Net of Expenses 33.9 19.2 Scholarships, Fellowships and Waivers
- 56.7 57.1 Increase in Fair Market Value of Investments 32.5 4.3 Student Services 35.8 35.7 Loss on Disposal of Capital Assets (2.) (39)
Interest on Capital Asset-Related Debt (8.0) (6.1)
Total Operating Expenses $ 2,4A59 $ Z346.6 Other Net Nonoperating Expenses (6.1) (10.1)
- Net of Scholarship Allowances of $149.8 million in the 2073-14 fiscal year Net Nonoperating Revenues $ H%5 $ 687.1 and$148.1 million in the 2012-13 fiscalyear.
MD&A activities of the University. Cash flows from capital and related Other Revenues, Expenses, financing activities include activities of the capital funds and Gains, Or Losses related long-term debt. Cash flows from investing activities reflect the net source and use of cash related to the purchases This category is composed of Capital State Appropriations and sales of investments and income earned on those and Capital Grants, Contracts, Donations, and Student Fees. investments. Cash flows from noncapital financing activities The University received more in both of these categories include those activities not covered in the other sections.
due to increases in State construction budgets and other capital gifts. The following summariz es the University's other Major sources of funds came from Noncapital State revenues, expenses, gains, or losse's for the 2013-14 and Appropriations ($605.9 million), Student Tuition and Fees, Net 2012-13 fiscal years: ($361.7 million), Grants and Contracts ($1,113.8 million), and Sales and Services of Auxiliary Enterprises ($130.7 million).
Major uses of funds were for Payments to Employees ($1,666.5 million), Payments to Suppliers for Goods and Services 2013-14 2012-13 ($543.9 million), and the Purchase or Construction of Capital Assets ($145.1 million). The following table summarizes cash Capital State Appropriations $ 43.6 $ 9. flows for the 2013-14 and 2012-13 fiscal years:
Capital Grants, Contracts, Donations, and Student Fees 17.7 13.9 Total Other Revenues, Expenses, Gains, or Losses $ 613 $ 23.4 Cash Provided (Used) by:
Operating Activities $ (633.0) $ (557.0)
Noncapital Financing Activities 770.0 734.3 Capital and Related Financing Activities (58.3) (112.6)
Investing Activities (78.8) (49 Statement Of Cash Flows Net Decrease in Cash and The Statement of Cash Flows provides information about the Cash Equivalents (0W1) (02)
University's financial results by reporting the major sources and uses of Cash and Cash Equivalents. This statement will Cash and Cash Equivalents, Beginning of Year 03 0,5 assist in evaluating the University's ability to generate net cash flows, its ability to meet its financial obligations as they Cash and Cash Equivalents, come due, and its need for external financing. Cash flows from End of Year $ 02 $ 03 operating activities reflect the net cash used by the operating
2013-2014 Annual Financial Report Capital Assets, Capital Expenses Anre Com itments, "2014 2013 And Debt Administration Capital Improvement Debt $ 181.6 $ 119.4 Loans and Notes 11.5 5.0 Installment Purchase Agreements 3.4 1.6 CAPITAL ASSETS Capital Leases 2.9 3.1 At June 30, 2014, the University had approximately S3.4 Total Capital Asset-Related Debt $ 199.4 $ 129.1 billion in capital assets, less accumulated depreciation of Additionalinformation about the University's capital asset-relateddebt is
$1.7 billion, for net capital assets of $1.7 billion. Depreciation presentedin Note 12 to the financialstatements.
charges for the current fiscal year totaled $123.1 million. The following table summarizes the University's capital assets, net of accumulated depreciation, at June 30:
Econormic Factors Th-t Will 2014 2013 The recovery in the national economy is well underway and Land $ 11.3 $ 10.8 the State's growth rates are returning to more typical levels Buildings 1,277.0 1,339.5 Infrastructure and Other Improvements 46.1 and continue to show progress. By the close of the 2013-14 47.0 Furniture and Equipment 182.9 .185.1 fiscal year, several key measures of the Florida economy had Library Resources 53.9 56.4 returned to or surpassed their prior peaks. These favorable Property Under Capital Lease and Leasehold Improvements economic outlooks are echoed in the State budget for the 7.9 6.0 Other Capital Assets 4.3 4.2 coming fiscal year which includes more than $100 million Construction in Progress 130.4 38.2 in new funding for the University of Florida. This reflects an Total Capital Assets (Nondepreciable extraordinary level of support from the Legislature and the and Depreciable, Net) $ 1,714.7 $ 1,686.3 Governor for the University of Florida and the goal to become one of the nation's top ten public research universities.
Additionalinformation about the University's capitalassets is presented in Note 8 to the financialstatements. The budget for the 2014-15 fiscal year includes an additional
$25.9 million in recurring dollars for meeting the performance CAPITAL EXPENSES AND COMMITMENTS metrics developed by the Board of Governors. An additional
$5 million was added to the preeminence initiative, bringing Major capital expenses were incurred on the following ongoing the total to $20 million per year. In addition, the budget projects for the fiscal year ending June 30, 2014: Reitz includes approximately $16 million for the UF Health Cancer Union Expansion and Renovation ($18.7 million); Heavener Center to support an effort to obtain the National Cancer Hall - School of Business ($13.2 million); and Harrell Medical Institute (NCI) designation. The NCI designation will provide Education Building (S8.3 million).
additional State and Federal funding and access to more The University's construction commitments at June 30, 2014, clinical trials. Major Capital State Appropriations include $20 are as follows: million to complete a new chemistry building; $13.5 million for facilities maintenance and repairs, with another S3 million for critical deferred maintenance; and $10 million to renovate the historic Newell Hall into a student study center.
Amount The 2014-15 fiscal year budget provides the University with Total Commitments $ 402.5 the resources necessary to continue the advance to the top Completed to Date 130.4 ten public research universities, serve the State of Florida, and Balance Committed $ 272.1 address critical facility needs on campus.
Additional information aboutthe University's capitalconstructioncommitments is presented in Note 15 to the financial statements.
Request.s For Informat-ion DEBT ADMINISTRATION Questions concerning information provided in the MD&A or other required supplementary information, and financial At June 30, 2014, the University had $199.4 million in outstanding Capital Improvement Debt Payable, Loans and statements and notes thereto, or requests for additional financial information should be addressed to the Office of Notes Payable, Capital Leases Payable, and Installment the University Controller, P.O. Box 113200, Gainesville, Florida Purchase Agreements Payable, representing an increase of 32611.
$70.3 million, or 54.5%, from the prior fiscal year. The following table summarizes the outstanding capital asset-related debt by type of debt at June 30: A Component Unit of the State of Florida 1 17
University of Florida Component Units Direct-Support Health Science Shands Hospital 20114 2013 Organizations Center Affiliates and Others ASSETS Current Assets Cash and Cash Equivalents (Note 1) $ 152 $ 285 $ 26,604 $ 55,716 $ 60,944 Investments (Note 3) 1,161,021 1,071,694 192,289 6,218 176,322 Accounts Receivable, Net (Note 4) 96,630 90,802 112,858 83,406 263,318 Loans and Notes Receivable, Net (Note 4) 2,787 2,821 Due From State (Note 5) 45,977 14,795 15,781 Due From Component Units/University (Note 6) 25,138 26,503 46,538 16,170 60,318 Inventories (Note 7) 4,690 4,570 42 24,446 Other Current Assets 2,130 1,964 6,197 2,495 40,558 Total Current Assets 1,338,25 1213,434 384,526 164,005 641,687 Noncurrent Assets:
Restricted Cash and Cash Equivalents (Note 1) 14 21 9,681 19,500 Restricted Investments (Note 3) 152,510 104,053 1,829,863 19,513 343,685 Loans and Notes Receivable, Net (Note 4) 36,975 36,375 Depreciable Capital Assets, Net (Note 8) 1,568,905 1,633,266 178,725 59,745 768,822 Nondepreciable Capital Assets (Note 8) 145,860 53,072 77,624 8,744 130,554 Other Noncurrent Assets 1,040 108 4,745 218,550 Total Noncurrent Assets 1,904,327 1,827,827 Z096.001 92,747 1,481,111 TOTAL ASSETS 3,242,852 3,041,261 2,480,529 256,752 2,122,798 DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Interest Rate Swap Agreements 42,052 Losses on Debt Refunding 631 42,683 TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,165,481 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 3242,852 $ 3,041261 $ 2,480,529 $ 256,752 $
UABIUTIES Current Liabilities:
Accounts Payable $ 64,133 $ 66,992 $ 14,429 $ 20,386 $ 152,584 Salaries and Wages Payable 24,304 19,252 3,850 7,090 71,141 Due To Component Units/University (Note 6) 46,547 80,174 66,598 12,827 47,471 Unearned Revenue (Note 10) 29,536 25,430 62,014 1,704 Deposits Held in Custody 19,055 16,086 81 Other Current Liabilities (Note 11) 201 7,133 2,885 Long-Term Liabilities - Current Portion: (Note 12)
Capital Improvement Debt Payable 8,605 7,307 Bonds Payable 10,580 2,011 23,687 Loans and Notes Payable 281 14,430 Installment Purchase Agreements Payable 1,263 846 Capital Leases Payable 137 129 244 193 2,339 Compensated Absences Payable 11,658 9,143 Liability for Self-Insured Claims 9,196 11,596 26,240 Total Current Uabilities 214,916 244,088 201,270 44292 297222 18 1 University of Florida
University of Florida Component Units Direct-Support Health Science Shands Hospital 2014 2013 Organizations Center Affiliates and Others Noncurrent Liabilities: (Note 12)
Capital Improvement Debt Payable $ 172,974 $ 112,094 $ 80,630 $ S Bonds Payable 33,036 672,205 Loans and Notes Payable 11,192 5,000 1,472 8,000 Installment Purchase Agreements Payable 2,097 772 Capital Leases Payable 2,810 2,947 349 5,260 Compensated Absences Payable 114,293 104,305 3,119 Other Postemployment Benefits Payable 180,690 139,775 2,386 Liability for Self-Insured Claims 36,606 44,551 Other Noncurrent Liabilities 18,482 18,768 22,392 Total Noncurrent Liabilities 539,144 43.212 107,613 41*35 7500A9 TOTAL LIABILITIES 754,060 672,300 306,883 5,677 1,018,101 DEFERRED INFLOWS OF RESOURCES Gains on Debt Refunding 11,668 TOTAL UABILITIES AND DEFERRED INFLOWS OF RESOURCES 754,060 672300 85.677 1,059,769 NET POSITION Net Investment inCapital Assets 1,565,313 1,554,445 117,560 24,901 195,225 Restricted:
Nonexpendable:
Endowment 1,196,686 97 Expendable:
Endowment 380,075 11,931 Loans 36,317 35,853 Capital Projects 79,294 64,217 Debt Service 4,433 5,453 326,610 Other 654,866 589,690 Unrestricted 119,303 -- 15071,5 146,174 898,459 1488,792 TOTAL NET POSION 2,368,961 Z.171,646 171,075 1,105,712 TOTAL UABIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION 3,2424Z52 $ 3,041,261 $ 2Z480,529 $ 256,752 $ 2Z165,481 The accompanyingnotes are an integralpartof these financial statements.
A Component Unit of the State of Florida i 19
Basic Financial Statements r~ ~
~t4~ 4 University of Florida Component Units Direct-Support Health Science Shands Hospital 2013-14 2012-13 Organizations CCenter Affiliates and Others OPERATING REVENUES Student Tuition and Fees $ 508,448 $ 500,508 $ $s (149,793) (148,064)
Scholarship Allowances Student Tuition and Fees, Net of Scholarship Allowances 358,655 352,444 Federal Grants and Contracts 366,315 391,536 State and Local Grants and Contracts 44,638 44,783 Nongovernmental Grants and Contracts 704,749 643,612 Sales and Services of Auxiliary Enterprises (Note 13) 129,942 131,350 Sales and Services of Educational Departments 52,012 51,555 Sales and Services of Component Units 108,566 Hospital Revenues 663,083 1,695,988 Gifts and Donations - Component Units 102,598 Royalties and Licensing Fees - Component Units 29,958 Interest on Loans and Notes Receivable 1,178 976 Other Operating Revenues .................
. .......
2,38.1 .......................
...... 5..44..512 8,5..
..........
. .. .. .....................
.-.._....o I_*
.. ...............
....
......
11 es .
.44 44,868 Total Operating Revenues 1,659,870 1,618,190 249,773 739,086 1,740,856 OPERATING EXPENSES Employee Compensation and Benefits 1,724,914 1,619,868 1,512 79,505 793,749 Services and Supplies 472,507 460,776 305,049 178,970 754,548 Utilities and Communications 62,761 64,748 Scholarships, Fellowships and Waivers, Net 78,418 82,024 Depreciation 123,114 121,356 9,944 7,803 77,220 Self-Insured Claims and Expenses (Note 16) (5,784) (2,183)
Total Operating Expenses (Note 18) Z455,930 2,346,589 316,505 266278 1,625,517 Operating Income (Loss) (796,060) (727,809) (66,732) 472,808 115,339 NONOPERATING REVENUES (EXPENSES)
Noncapital State Appropriations 605,890 485,479 6,912 7,050 Federal and State Student Financial Aid 116,994 114,094 Noncapital Grants, Contracts, and Gifts 82,041 84,091 Investment Income 37,474 21,850 202,792 583 37,587 Net Increase (Decrease) in the Fair Value of Investments 32,524 4,304 12,736 (412) 3,452 Investment Expenses (3,598) (2,566) (793) (876) (7,586)
Other Nonoperating Revenues 422 48,510 31,655 4,858 Gain (Loss) on Disposal of Capital Assets (2,699) (3,898) 1,219 (655) (2,047)
Interest on Capital Asset-Related Debt (8,048) (6,134) (2,349) (20,372)
Other Nonoperating Expenses (6,483) (10,128) (42,262) (490,544) (68,803)
Net Nonoperating Revenues (Expenses) 854,517 687,092 226,765 (460,249) (45,861) 12,559 69,478 Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 58,457 (40,717) 160,033 Capital State Appropriations 43,667 9,464 Capital Grants, Contracts, Donations, and Student Fees 17,707 13,922 Additions to Permanent Endowments 31,583 Total Other Revenues, Expenses, Gains, or Losses 61,374 23,386 31,583 12,559 69,478 Increase (Decrease) in Net Position 119,831 (17,331) 191,616 Net Position, Beginning of Year 2,358,961 2,386292 1,980,030 158,873 1,036,234 Adjustment to Beginning Net Position (Note 2) (357)
Adjusted Net Position, Beginning of Year, as Restated 2,3M8,961 2,386,292 11,981,M0 158,516 1,036,234 Net Position, End of Year $ 2,488,792 $ 2,368,961 $ 2,171,646 $ 171,075 $ 1,105,712 The accompanying notes are an integralpart of these financialstatements.
20 1 University of Florida
2013-2014 Annual Financial Report Univ ersity of Florida 2013-14 2012-13 CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees, Net $ 361,659 $ 355,196 Grants and Contracts 1,113,838 1,082,254 Sales and Services of Auxiliary Enterprises 130,706 138,640 Sales and Services of Educational Departments 51,328 51,538 Repayment of Loans and Notes Receivable from Students 5,667 7,755 Interest on Loans Receivable 1,158 1,209 Other Operating Receipts 2,247 3,073 Payments to Employees (1,666,456) (1,567,072)
Payments to Suppliers for Goods and Services (543,917) (523,864)
Payments to Students for Scholarships and Fellowships (78,418) (82,024)
Loans Issued to Students (6,234) (6,305)
Payments on Self-Insured Claims and Expenses (4,562) ............
(1.7,397)
Net Cash Used by Operating Activities (632,984) (556,997)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Noncapital State Appropriations 605,890 485,479 Federal and State Financial Aid 116,994 114,094 Noncapital Grants, Contracts, and Gifts 82,041 84,091 Direct Loan Program Receipts 249,032 253,278 Direct Loan Program Disbursements (249,035) (253,275)
Net Change in Funds Held for Others (31,147) 58,500 Other Nonoperating Receipts 422 948 Other Nonoperating Disbursements (4,242)
Net Cash Provided by Noncapital Financing Activities 769,955 734,281 CASH FLOWS FROM CAPITAL AND RELATED FNANCING ACTIVITIES Proceeds from Capital Debt 76,647 5,000 Capital State Appropriations 12,485 26,204 Capital Grants, Contracts, Donations, and Student Fees 15,711 9,548 Proceeds from Sales of Capital Assets 532 358 Other Receipts for Capital Projects 17 Purchase or Construction of Capital Assets (145,059) (139,187)
Principal Paid on Capital Debt and Leases (10,595) (8,436)
Interest Paid on Capital Debt and Leases (8,048) ..... (6,14.......).
......
Net Cash Used by Capital and Related Financing Activities (58,327) (112,630)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of Investments 1,688,033 1,564,849 Purchase of Investments (1,799,918) (1,650,132)
Investment Income 33,101 20,416 Net Cash Used by Investing Activities (78,784) (64,867)
Net Decrease in Cash and Cash Equivalents (140) (213)
Cash and Cash Equivalents, Beginning of Year 306 519 Cash and Cash Equivalents, End of Year $ 166 $ 306 RECONCILATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss $ (796,060) $ (727,809)
Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities:
Depreciation Expense 123,114 121,356 Change in Assets and Liabilities:
Receivables, Net (5,607) 54,879 Due From Component Units 1,365 (13,183)
Inventories (120) 110 Other Assets (145) (68)
Accounts Payable (8,387) 1,617 Salaries and Wages Payable 5,041 (106)
Unearned Revenue 4,106 (145)
Deposits Held in Custody 636 136 Other Postemployment Benefits Payable 40,915 37,317 Compensated Absences Payable 12,503 15,584 Liability for Self-Insured Claims (10,345) (46,685)
NET CASH USED BY OPERATING ACTIVITIES $ (632,984) $ (556,997)
SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING, INVESTING, AND CAPITAL AND RELATED FINANCING ACTIVITIES 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 Flows:
Unrealized gains on investments $ 32,524 Acquisition of equipment under installment purchase agreements $ (2,920)
Loss on disposal of capital assets $ (2,699)
The accompanying notes are an integralpartof these financialstatements. A Component Unit of the State of Florida 1 21
NOTES TO THE FINANCIAL STATEMENTS For the FiscalYear Ended June 30,2014 The Trustees are responsible for setting policies for the ASummary AccountingOfPolicies Significant University, which provide governance in accordance with State law and Florida Board of Governors' Regulations. The Trustees select the University President. The University The significant accounting policies followed by the University President serves as the executive officer and the corporate secretary of the Trustees, and is responsible for administering of Florida are described below to enhance the usefulness of the policies prescribed by the Trustees.
the financial statements.
Criteria for defining the reporting entity are identified and A. REPOPTING ENTITY described in the Governmental Accounting Standards Board's (GASB) Codification of Governmental Accounting The University of Florida is a separate public instrumentality and Financial Reporting Standards, Sections 2100 and that is part of the State university system of public universities, 2600. These criteria were used to evaluate potential which is under the general direction and control of the Florida component units for which the primary government is Board of Governors. The University is directly governed by a financially accountable and other organizations for which Board of Trustees (Trustees) consisting of thirteen members. the nature and significance of their relationship with the The Governor appoints six citizen members and the Florida primary government are such that exclusion would cause the Board of Governors appoints five citizen members. These primary government's financial statements to be misleading members are confirmed by the Florida Senate and serve or incomplete. Based on the application of these criteria, staggered terms of five years. The chair of the faculty senate the University of Florida is a component unit of the State of and the president of the student body of the University are Florida, and its financial balances and activities are reported also members. The Florida Board of Governors establishes the in the State's Comprehensive Annual Financial Report by powers and duties of the Trustees. discrete presentation.
22 1 University of Florida
2013-2014 Annual Financial Report B. BLENDED COMPONENT UNITS statements of the University by discrete presentation. These legally separate, not-for-profit corporations are organized Based on the application of the criteria for determining and operated exclusively to assist the University to achieve component units, the University of Florida Self-Insurance excellence by providing supplemental resources from private Program (the Program), and the University of Florida Healthcare gifts and bequests, and valuable education support services.
Education Insurance Company (HEIC), are included within The Statute authorizes these organizations to receive, hold, the University reporting entity as blended component units. invest, and administer property and to make expenditures to Although legally separate from the University of Florida, the or for the benefit of the University. These organizations and Program's and the HEIC's sole purpose is to assist in providing their purposes are explained as follows:
liability protection for the University and its affiliated individuals and entities, and are therefore reported as if they are part of the University of Florida Foundation, Inc., solicits, collects, University. The Program was created by the Florida Board of manages, and directs contributions to the various academic Governors, pursuant to Section 1004.24, Florida Statutes. The departments and programs of the University, and assists the HEIC was created on September 1, 1994, as a self-insurance University in fund raising, public relations, and maintenance of mechanism created pursuant to Section 1004.24, Florida alumni records. Their financial statements include the activities Statutes. Annual audits of the Program's and HEIC's financial of the University of Florida Alumni Association, Inc.
statements are conducted by independent certified public The University Athletic Association, Inc., conducts various accountants. See Notes 16 and 19 for more details. inter-collegiate athletic programs for and on behalf of the University.
C. DISCRETELY PRESENTED University of Florida Research Foundation, Inc., promotes, COMPONENT UNITS encourages, and assists research activities of the University through income derived from or related to the development Based on the application of the criteria for determining and commercialization of intellectual properties, which include component units, certain affiliated organizations are required inventions, discoveries, processes, and work products.
to be included within the University reporting entity as discretely presented component units because of the GatorCare Health Management Corporation coordinates significance of their relationship with the University. These and facilitates the management of the self-insured health organizations are legally separate from the University insurance plan of the University and its participating affiliated and are governed by separate boards. The University employers, collecting and paying employer and employee further categorizes its component units as Direct-Support premiums.
Organizations, Health Science Center Affiliates, and Shands Gator Boosters, Inc., supports athletic activities at the Hospital and Others. An annual audit of each organization's University.
financial statements is conducted by independent certified public accountants. The annual reports are submitted to University of Florida Development Corporation develops the Auditor General and the University Board of Trustees. and maintains Innovation Square where the University-owned Additional information on the University's discretely Florida Innovation Hub is located.
presented component units, including copies of audit reports, Citrus Research and Development Foundation, Inc., was is available by contacting the Office of University Relations. formed to advance disease and production research and Condensed financial statements for the University's discretely product development activities to ensure the survival and presented component units are shown in Note 19. competitiveness of Florida's citrus growers through innovation.
However, financial activities of certain component units are University of Florida Alumni Association, Inc., supports not included in the University's financial statements and activities of the alumni of the University of Florida. Its financial are denoted below with an asterisk (*). The total assets and transactions are reflected in the financial statements of the operating revenues related to these component units are $43 University of Florida Foundation, Inc.
million and $23 million, respectively. These amounts represent less than one percent of the total aggregate component units' Florida Foundation Seed Producers, Inc.,* supplies Florida assets and operating revenues. farmers and producers with crop seed and nursery stock.
This organization stocks foundation seed of the best-known varieties acceptable to Florida climate and soils in adequate D. DIRECT-SUPPORT ORGANIZATIONS quantities and at reasonable prices.
The University's direct-support organizations, as provided for The University of Florida Law Center Association, Inc.,*
in Section 1004.28, Florida Statutes, and Board of Governors' supports the Levin College of Law.
Regulation 9.011, are considered component units of the Florida 4-H Club Foundation, Inc.,* promotes the educational University of Florida and therefore the latest audited financial objectives of the 4-H Youth Development Program, an official statements of these organizations are included in the financial part of the Florida Cooperative Extension Service.
A Component Unit of the State of Florida 1 23
Notes University of Florida Leadership and Education Foundation, provide educationally-oriented clinical practice settings and Inc.,* was formed to further agriculture and natural resource opportunities through which faculty members provide health, education and related activities, promote agriculture and medical, and dental care to patients as an integral part of natural resources leadership, and make contributions to and their academic activities and their employment as faculty.
confer benefits upon the University. Because these faculty practice activities generate income, the colleges are authorized to regulate fees generated from University of Florida Investment Corporation* promotes the faculty practice and maintain Faculty Practice Plans for the educational purposes of the University of Florida by providing orderly collection and distribution of fees. These organizations investment research, advice, counsel, and management provide significant support for the clinical instruction function to and for the University Board of Trustees and affiliated of the JHMHC.
organizations of the University.
University of Florida Jacksonville Healthcare, Inc., a Health Citrus Research and Education Foundation, Inc.,* expedites Services Support Organization, as provided for in Board citrus production, propagates new plant materials, collects of Governors' Regulation 9.011, engages in strategic and analyzes environmental impact research data, and alliances and partnerships with non-academic entities, provides research and education support to the University of effecting managed care contracting and provider network Florida Citrus Research and Education Center at Lake Alfred.
development for the JHMHC. Faculty Clinic, Inc., was Treasure Coast Agricultural Research Foundation, Inc.,* originally organized to operate a multi-specialty clinic.
supports, encourages, and fosters research, education, and However, effective January 1, 1995, Faculty Clinic, Inc., was extension at the Institute of Food and Agricultural Sciences restructured to operate as a facilities management company.
of the University on issues related to the citrus industry within the Indian River region.
F. SHANDS HOSPITAL AND OTHERS UF Historic St. Augustine, Inc.,* ensures the long-term Shands Teaching Hospital and Clinics, Inc. (Shands),
preservation and interpretation of State-owned historic was incorporated October 15, 1979, as a not-for-properties in St. Augustine.
profit corporation. Shands, a major tertiary care Southwest Florida Research and Education Foundation, Inc.,* teaching institution, is a leading referral center in the provides research and educational support to the University State of Florida and the southeast United States and of Florida Southwest Florida Research and Education Center. facilitates medical education programs at the University.
Shands entered into a contractual agreement, as of July 1, E. HEALTH SCIENCE CENTER AFFILIATES 1980, as subsequently restated and amended, with the Florida Board of Education, to provide for the use of hospital facilities Several corporations closely affiliated with the University at the JHMHC through December 31, 2030, with renewal of Florida J. Hillis Miller Health Science Center (JHMHC) are provisions. The contractual agreement also provides for the considered to be component units of the University of Florida.
transfer to Shands of all other assets and liabilities arising from These corporations are as follows:
the operation of the hospital facilities prior to July 1, 1980. At
- Florida Clinical Practice Association, Inc. termination of the contractual agreement, the net position of Shands reverts to the State Board of Education. Legal title to
- University of Florida Jacksonville Physicians, Inc.
all buildings and improvements transferred to Shands remains
- Florida Veterinary Medicine Faculty Association, Inc. with the State of Florida during the term of the contractual agreement. The contractual agreement provides for a University of Florida Jacksonville Healthcare, Inc.
12-month grace period for any event of default, other than the Faculty Associates, Inc. bankruptcy of Shands. In addition, the contractual agreement limits the right of the State Board of Education to terminate
- Faculty Clinic, Inc.* the contractual agreement solely to the circumstance in which
- University of Florida College of Nursing Faculty Shands declares bankruptcy and, in such event, requires net Practice Association, Inc.* revenues derived from the operation of the hospital facilities to continue to be applied to the payment of Shands' debts.
- Florida Health Professions Association, Inc.*
Under the terms of the contractual agreement, Shands is
- University of Florida College of Pharmacy Faculty obligated to manage, operate, maintain, and insure the Practice Association, Inc.* hospital facilities in support of the programs of the JHMHC and further agrees to contract with the State Board of The corporations listed above, except University of Florida Education for the provision of these programs. By operation Jacksonville Healthcare, Inc., and Faculty Clinic, Inc.,
of law, the University of Florida Board of Trustees has become are Faculty Practice Plans, as provided for in Board of the successor-in-interest to the State Board of Education.
Governors' Regulation 9.017 The Faculty Practice Plans 24 1 University of Florida
2013-2014 Annual Financial Report Shands Jacksonville HealthCare, Inc. (Shands Jacksonville), and reported in the financial statements. Specifically, it is a Florida not-for-profit corporation. Shands Jacksonville relates to the timing of the measurements made, regardless was organized primarily to provide healthcare and related of the measurement focus applied. The University's financial services to the community including the City of Jacksonville statements are presented using the economic resources and surrounding counties, and to support the teaching and measurement focus and the accrual basis of accounting.
research missions of the University. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources University Village Apartments, Inc. (the Corporation), was resulting from exchange and exchange-like transactions established in 1969, for the purpose of providing housing for are recognized when the exchange takes place. Revenues, low- and moderate-income families, especially those affiliated expenses, gains, losses, assets, deferred outflows of with the University of Florida. Capital was contributed at resources, liabilities, and deferred inflows of resources inception by the University of Florida Foundation, Inc., but no resulting from nonexchange activities are generally recognized capital stock was issued because the Corporation does not when all applicable eligibility requirements, including time operate for the benefit of any special interest. The Corporation requirements, are met. The University follows GASB standards provided housing under Section 221(d)(3) of the National of accounting and financial reporting.
Housing Act. The facility consists of 28 two-story buildings and was regulated by the United States Department of The University's blended and discretely presented component Housing and Urban Development (HUD) as to rent charges and units use the economic resources measurement focus and operating methods. The Corporation is no longer regulated accrual basis of accounting whereby revenues are recognized by HUD since it has repaid in full its Section 221 insured loan. when earned and expenses are recognized when incurred.
The Corporation is in the process of dissolving and merging Twenty-three component units follow GASB standards of into the University Department of Housing and Residence accounting and financial reporting. Eight component units Education. All transactions during the 2013-14 fiscal year are (University of Florida Foundation, Inc., Florida Foundation Seed included in the University's financial statements. Producers, Inc., Southwest Florida Research and Education Foundation, Inc., Citrus Research and Education Foundation, Inc., Citrus Research and Development Foundation, Inc.,
G. BASIS OF PRESENTATION Treasure Coast Agricultural Research Foundation, Inc.,
University of Florida Alumni Association, Inc., and University The University's accounting policies conform with accounting of Florida Investment Corporation) follow FASB standards principles generally accepted in the United States of America of accounting and financial reporting for not-for-profit applicable to public colleges and universities as prescribed organizations.
by GASB. The National Association of College and University Business Officers (NACUBO) also provides the University with Significant interdepartmental sales between auxiliary service recommendations prescribed in accordance with generally departments and other institutional departments have been accepted accounting principles promulgated by GASB and the accounted for as reductions of expenses and not revenues of Financial Accounting Standards Board (FASB). GASB allows those departments.
public universities various reporting options. The University The University's principal operating activities consist of of Florida has elected to report as an entity engaged in only instruction, research and public service. Operating revenues business-type activities. This election requires the adoption and expenses generally include all fiscal transactions directly of the accrual basis of accounting and entity-wide reporting related to these activities as well as administration, operation including the following components:
and maintenance of capital assets, and depreciation on
- Management's Discussion and Analysis capital assets. Nonoperating revenues include Noncapital
- Basic Financial Statements: State Appropriations, Federal and State student financial aid, investment income and Capital State Appropriations for
- 1) Statement of Net Position construction projects. Interest on capital asset-related debt is
- 2) Statement of Revenues, Expenses, a nonoperating expense.
and Changes in Net Position The Statement of Net Position is presented in a classified
- 3) Statement of Cash Flows format to distinguish between current and noncurrent assets
- 4) Notes to the Financial Statements and liabilities. When both restricted and unrestricted resources are available to fund certain programs, it is the University's
- Other Required Supplementary Information policy to first apply the restricted resources to such programs, followed by the use of the unrestricted resources.
H. BASIS OF ACCOUNTING The Statement of Revenues, Expenses, and Changes in Net Basis of accounting refers to when revenues, expenses, and Position is presented by major sources and is reported net related assets, deferred outflows of resources, liabilities, and of tuition scholarships, discounts, and allowances. Tuition deferred inflows of resources are recognized in the accounts scholarships, discounts, and allowances are the differences A Component Unit of the State of Florida 1 25
Notes between the stated charge for goods and services provided
- Buildings - 5 to 50 years, depending on construction by the University and the amount that is actually paid by a Infrastructure and Other Improvements -
student or a third party making payment on behalf of the 10 to 50 years student. The University applied "The Alternate Method" Furniture and Equipment - 3 to 20 years as prescribed in NACUBO Advisory Report 2000-05 to determine the reported net tuition scholarships, discounts, Library Resources - 10 years and allowances. Under this method, the University computes
- Property Under Capital Lease and Leasehold these amounts by allocating the cash payments to students, Improvements - 10 to 50 years excluding payments for services, on a ratio of total aid to the
- Computer Software - 5 years aid not considered to be third-party aid.
The Statement of Cash Flows is presented using the direct method in compliance with GASB Statement No. 9, Reporting K. NONCURRENT LIABILITIES Cash Flows of Proprietaryand Nonexpendable Trust Funds and Noncurrent liabilities include principal amounts of capital Governmental Entities That Use Proprietary Fund Accounting. improvement debt payable, loans and notes payable, installment purchase agreements payable, capital leases payable, compensated absences payable, other I. CASH AND CASH EQUIVALENTS postemployment benefits payable, liability for self-insured The amount reported by the University as cash and cash claims, and other noncurrent liabilities that are not scheduled equivalents consists of cash on hand and cash in demand to be paid within the next fiscal year. Capital improvement accounts. University cash deposits are held in banks qualified debt payable is reported net of unamortized premiums, as public depositories under Florida law. All such deposits discounts, and losses on refunding. The University amortizes are insured by Federal depository insurance, up to specified debt premiums and discounts over the life of the debt using limits, or collateralized with securities held in Florida's multiple the straight-line method. Losses on refundings are amortized financial institution collateral pool required by Chapter 280, over the life of the old debt or new debt (whichever is shorter)
Florida Statutes. Cash and cash equivalents that are externally using the straight-line method.
restricted to make debt service payments, maintain sinking or reserve funds, or to purchase or construct capital assets or other restricted assets, are classified as restricted. The L. OTHER SIGNIFICANT ACCOUNTING POLICIES University considers cash balances in overnight sweep accounts Other significant accounting policies are set forth in the to be investments, as permitted by GASB Statement No. 9.
financial statements and subsequent notes hereafter.
J. CAPITAL ASSETS University capital assets consist of land, construction in Adjustments 71 Beg-inning Net progress, buildings, infrastructure and other improvements, ~SPoisito Component Units furniture and equipment, library resources, property under capital lease and leasehold improvements, works of art Table 1 summarizes the Adjustments to Beginning Net and historical treasures, computer software, and other Position reported in the Statement of Revenues, Expenses, capital assets. These assets are capitalized and recorded and Changes in Net Position to reflect prior year accounting at cost at the date of acquisition or at estimated fair value changes of the University's discretely presented component on the date received in the case of gifts and purchases units.
of State surplus property. Additions, improvements, and other outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The University has Health Science a capitalization threshold of S4 million for intangible assets, Description Center Affiliates which includes computer software, and 35,000 for tangible Florida Clinical Practice Association, Inc. - Write-off personal property. The costs of all new buildings and projects bond issuance costs per GASB 65 implementation S. (281,880) adding new square footage are capitalized. Infrastructure and leasehold improvements have a S250,000 capitalization University of Florida Jacksonville Physicians, Inc.-
Write-off bond issuance costs per GASB 65 threshold. For building renovations, the threshold is $250,000 (75,143) implementation or less if the amount expended is at least 25% of the cost basis of the building. Depreciation is computed on the straight-line Total Adjustments to Beginning Net Position $ (357,023) basis over the following estimated useful lives:
26 1 University of Florida
2013-2014 Annual Financial Report Iel-it Investments Types of Investments Fair Value Section 1011.42(5), Florida Statutes, authorizes universities to invest funds with the State Treasury and State Board of External Investments Pools:
State Treasury Special Purpose Investment Account $ 215,454,725 Administration (SBA), and requires that universities comply State Board of Administration Florida PRIME with the statutory requirements governing investment of Investment Pool 76,836 public funds by local governments. Accordingly, universities United States Government and Federally-Guaranteed Obligations 2,900,382 are subject to the requirements of Chapter 218, Part IV, Bonds and Notes .18,008,566 Florida Statutes. The University's Board of Trustees has Investment Agreements 2,114,594,412 adopted a written investment policy providing that surplus Real Estate Agreements 8,255,259 Stocks 802,402 funds of the University shall be invested in those institutions Money Market Funds 40,137,634 and instruments permitted under the provisions of Florida Equity Mutual Funds 61,268,796 Statutes. Pursuant to Section 218.415(16), Florida Statutes, Bond Mutual Funds 87,344,975 Commercial Paper 19,046,000 the University is authorized to invest in the Florida PRIME investment pool administered by the SBA; interest-bearing Total Component Unit Investments $ 2,567,889,987 time deposits and savings accounts in qualified public depositories, as defined in Section 280.02, Florida Statutes; direct obligations of the United States Treasury; obligations of Federal agencies and instrumentalities; securities of, or A. EXTEPNAL INVESTMENT POOLS interests in, certain open-end or closed-end management type investment companies; Securities and Exchange The University and its discretely presented component Commission registered money market funds with the highest units (see Note 1) reported investments at fair value totaling credit quality rating from a nationally recognized rating S665,870,046 and $215,454,725, respectively, at June 30, agency; and other investments approved by the University's 2014, in the State Treasury Special Purpose Investment Account (SPIA) investment pool, representing ownership of Board of Trustees, as authorized by law. Investments set aside to make debt service payments, maintain sinking or reserve a share of the pool, not the underlying securities. The SPIA carried a credit rating of A+f by Standard & Poor's, an effective funds, or to purchase or construct capital assets are classified as restricted. Investments of the University and its component duration of 2.57 years, and a fair value factor of 1.0074 at June units at June 30, 2014, are reported at fair value and shown in 30, 2014. The University relies on policies developed by the Tables 2 and 3. State Treasury for managing interest rate risk or credit risk for this investment pool. Disclosures for the State Treasury investment pool are included in the notes to the financial statements of the State's Comprehensive Annual Financial Report.
Types of Investments Fair Value At June 30, 2014, the University's component units reported External Investments Pool: investments totaling S76,836 in the Florida PRIME investment State Treasury Special Purpose Investment Account $ 665,870,046 pool, administered by the SBA pursuant to Section 218.405, State Board of Administration Debt Service Account 7,750,493 Repurchase Agreements 21,064,206 Florida Statutes. The investments in the Florida PRIME Stocks 516 investment pool, which the SBA indicates is a Securities and Certificates of Deposit 750,000 Exchange Commission Rule 2a7-like external investment Investment Agreements 458,646,451 Equity Mutual Funds 61,290,943 pool, at June 30, 2014, are similar to money market funds in Bond Mutual Funds 98,158,648 which shares are owned in the fund rather than the underlying investments. The Florida PRIME investment pool carried Total University Investments $ 1,313,531,303 a credit rating of AAAm by Standard & Poor's and had a weighted-average days to maturity (WAM) of 40 days as of June 30,2014. A portfolio's WAM reflects the average maturity in days, based on final maturity or reset date, in the case of floating rate instruments. WAM measures the sensitivity of the Florida PRIME investment pool to interest rate changes.
The investments in the Florida PRIME investment pool are reported at fair value, which is amortized cost.
A Component Unit of the State of Florida 1 27
Notes B. STATE BOAPD OF ADMINISTPATION DEBT University of Florida Investment Corporation for the University SERVICE ACCOUNTS of Florida. Forthe University's discretely presented component units, other investments are those reported primarily by the The University reported investments at fair value totaling University of Florida Foundation, Inc., The University Athletic
$7,750,493 at June 30,2014, in the SBA Debt Service Accounts. Association, Inc., University of Florida Research Foundation, These investments are used to make debt service payments Inc., Florida Clinical Practice Association, Inc., Shands on bonds issued by the State Board of Education for the Teaching Hospital and Clinics, Inc., and Shands Jacksonville benefit of the University. The University's investments consist HealthCare, Inc. The following risks apply to the University's of United States Treasury securities, with maturity dates of and its discretely presented component units' investments six months or less. The University relies on policies developed other than external investment pools:
by the SBA for managing interest rate risk and credit risk for these accounts. Disclosures for the Debt Service Accounts are Interest Rate Risk: Interest rate risk is the risk that changes included in the notes to the financial statements of the State's in interest rates will adversely affect the fair value of an Comprehensive Annual Financial Report. investment. Pursuant to Section 218.415(16), Florida Statutes, the University's investments in securities must provide sufficient liquidity to pay obligations as they come due. Per C. OTHER INVESTMENTS the Statement of Investment Guidelines and Objectives of the University of Florida Healthcare Education Insurance In addition to external investment pools, the University and its Company, the weighted-average duration of the fixed income discretely presented component units invested in various debt portfolio shall at all times be less than five years. Investments and equity securities, money market funds, mutual funds, of the University and its discretely presented component units and certificates of deposit. For the University, the majority of (excluding those reporting under FASB standards) in debt the other investments are those reported by the University securities and bond mutual funds, and their future maturities of Florida Self-Insurance Program, and the University of at June 30, 2014, are shown in Tables 4 and 5, respectively.
Florida Healthcare Education Insurance Company, blended component units (see Note 1), plus amounts managed by the Investment Maturities (in Years)
Types of Investments Fair Value Less than 1 .. : 1-5 6-10 More than 10 Bond Mutual Funds $ 98,158,648 $ $ 98,158,648 $ - $
- .27. 7~ :N I~uJ Investment Maturities (inYears)
STypes Of Investments Fair Value Less than 1 1-5 6-10 More than 10 United States Government and Federally-Guaranteed Obligations $ 2,640,000 $ $. 2,640,000 $ - $
Bonds and Notes 17,874,113 1,000,836 15,874,464 998,813 Bond Mutual Funds 74,900,532 10,607,839 6,171,693 58,121,000 Total Component Units $ 95,414,645 $ 11,608,675 $ 24,686,157 $ 59,119,13 $
- .~-.q Less than A/Ba Types of Investments Fair 9 i_,Value I...$
................... 1AAAIAaa
,....
-....................
. 0AA/Aa 50 ... 7, 1
.................... A/Ba or Not Rated Bond Mutual Funds $ 98,158,648" $ 11,760,512 ".$ "50,047,115 $ 30,340,93 $ 6,010,928 28 1 University of Florida
2013-2014 Annual Financial Report V.. .iL Less than A/Ba Types of Investments Fair Value AAA/Aaa AA/Aa A/Ba or Not Rated
$ 2,993,192 Bonds and Notes $ 17,874,113 $ 3,859,082 $ 6,981,872 $ 4,039,967 Bond Mutual Funds 74,900,532 2,570,839 - 72,329,693 Total Component Units $ 9*,774,645 $ 3,859,092 $ 9,552,711 $ 4,039,967 $ 75,322,885 Credit Risk: Credit risk is the risk that an issuer or other
'I f, $6 0- 'ýt counterparty to an investment will not fulfill its obligations. ý 4 ;;- 4 A Obligations of the United States Government or obligations explicitly guaranteed by the United States Government Description Amount are not considered to have credit risk and do not require Grants and Contracts $ 77,098,911 disclosure of credit quality. At June 30, 2014, the University Sales and Services of Auxiliary Enterprises 7,785,585 and its discretely presented component units (excluding Student Tuition and Fees 7,401,356 those reporting under FASB standards) had bonds and notes, Sales and Services of Educational Departments 2,693,690 Interest 1,650,434 and bond mutual funds, with quality ratings by nationally recognized rating agencies (e.g., Moody's Investors Service), Total Accounts Receivable, Nat $ 96,629,976 as shown in Tables 6 and 7, respectively.
Custodial Credit Risk: Custodial credit risk is the risk that in the event of the failure of the counterparty to a transaction, the University will not be able to recover the value of its B. LOANS AND NOTES RECEIVABLE investments or collateral securities that are in the possession Loans and notes receivable represent all amounts owed of an outside party. Exposure to custodial credit risk relates on promissory notes from debtors, including student loans to investment securities that are held by someone other made under the Federal Perkins Loan Program and other loan than the University and are not registered in the University's programs.
name. The University has no formal policy on custodial credit risk. The component units manage their custodial credit risk based on various investment policies, which may be obtained C. ALLOWANCES FOR UNCOLLECTIBLE separately from the component units. RECEIVABLES Concentration of Credit Risk: Concentration of credit Allowances for uncollectible accounts, and loans and notes risk is the risk of loss attributed to the magnitude of the receivable, are reported based upon management's best University's investments in a single issuer. The University estimate as of fiscal year-end, considering type, age, collection has no formal policy on concentration of credit risk. history, and other factors considered appropriate. Accounts The component units manage their concentration of receivable for student tuition and fees, various sales and credit risk based on various investment policies, which services provided to students and third parties, and interest are may be obtained separately from the component units. reported net of an allowance of $6,474,327, which is 24.9% of total related accounts receivable. Loans and notes receivable Recei'vables are reported net of an allowance of $4,273,148 which is 9.7%
of total related loans and notes receivable. No allowance has been accrued for grants and contracts receivable.
University management considers these to be fully collectible.
A. ACCOUNTS RECEIVABLE Accounts receivable represent amounts for grant and DUe From State contract reimbursements due from third parties, various sales and services provided to students and third parties, student tuition and fees, and interest accrued on investments and This amount consists of S45,976,604 of Public Education loans receivable. Accounts receivable, net of an allowance Capital Outlay due from the State to the University for for uncollectible accounts, reported as of June 30, 2014, are construction of University facilities.
summarized in Table 8.
A Component Unit of the State of Florida 29
Notes Departmental Inventories - Those inventories maintained Due From And To Component Uifts/
U ~/Uinivoersity v~~
by departments and not available for resale. Departmental inventories are comprised of such items as classroom and laboratory supplies, teaching materials, and office supply The University's financial statements are reported for the items, which are consumed in the teaching and work process.
fiscal year ended June 30, 2014. The University's discretely These inventories are normally expensed when purchased and presented component units' financial statements are reported therefore are not reported on the Statement of Net Position.
for the most recent fiscal year for which an audit report is Merchandise Inventories - Those inventories maintained available. Some component units are not presented (see which are available for resale to individuals and other Note 1). Additionally, component units' due from and due to University departments, and are not expensed at the time of amounts include receivables and payables between the various purchase. These inventories are reported on the Statement of component unit columns. Accordingly, amounts reported Net Position and are valued at cost using either the moving by the University as due from and to component units on average method or the first-in, first-out method.
the Statement of Net Position may not agree with amounts reported by the component units as due from and to the University.
- Capital Assets Inventories Capital assets activity for the fiscal year ended June 30, 2014, is presented in Table 9.
Inventories have been categorized into the following two types:
j ........
Beginning Ending Description Balance Additions Reductions Balance Nondepreciable Capital Assets:
Land $ 10,841,236 $. 1,400,000 $ 962,637 $ 11,278,599 Construction in Progress 38,219,651. 108,923,437 16,701,755 130,441,333 Works of Art and Historical Treasures 4,011,284 129,060 4,140,344 Total Nondepreciable Capital Assets 53,072,171 110,452,497 17,664,392 145,860276 Depreciable Capital Assets:
Buildings 2,284,054,228 9,630,734 1,597,861 2,292,087,101 Infrastructure and Other Improvements 108,260,867 4,893,655 235,476 112,919,046 Furniture and Equipment 534,362,432 37,515,040 21,177,965 550,699,507
.Library Resources 314,817,433 8,875,867 1,935,770 321,757,530 Property Under Capital Lease and Leasehold Improvements 9,815,002 2,325,636 12,140,638 Works of Art and Historical Treasures 419,695 13,200 432,895 Computer Software 24,533,000 24,533,000 Other Capital Assets 9,500 45,610 55,110 Total Depreciable Capital Assets 3,276,272,157 63,299,742 24,947,072 3,314,624,827 Less Accumulated Depreciation:
Buildings 944,552,425 71,721,401 1,155,462 1,015,118,364 Infrastructure and Other Improvements 62,177,410 3,941,225 235,476 65,883,159 Furniture and Equipment 349,233,846 35,620,523 17,060,078 367,794,291 Library Resources 258,372,911 * :11,414,070 1,935,770 267,851,211 Property Under Capital Lease and Leasehold Improvements 3,863,574 385,126 4,248,700 Works of Art and Historical Treasures, 268,736 24,991 13,400 280,327 Computer Software 24,533,000 24,533,000 Other Capital Assets 4,117 6,961 11,078 Total Accumulated Depreciation 1,643,006,019 ........
.........
.2*
..........
123,114,297 20,400,186 1,745,720,130
....... ....... .............. =
... .I..
Total Depreciable Capital Assets, Net 1,633,266,138 (59,814,555) 4,546,986 1,568,904,697 Total Capital Assets, Net $ 1,686,,309 $ 50,637,942 $ 22,1127 $ 1,714,764,973 30 1 University of Florida
2013-2014 Annual Financial Report Museum, And Art Description Amount The Florida Museum of Natural History, which is part of the University, maintains a depository of biological, geological, Grants and Contracts $ 18,841,720 Sales and Services of Auxiliary Enterprises 6,963,312 archaeological, and ethnographic materials. The Museum's Student Tuition and Fees 3,730,503 collections contain approximately 32 million specimens, more than half of which are catalogued, either individually or Total Unearned Revenue $ 29,535,535 in lots. While many of the collections are undoubtedly quite valuable and irreplaceable, the University has not placed a dollar value on these items and, accordingly, the financial statements do not include these assets.
The Samuel P. Harn Museum of Art, which is also part of the Other Currenit Liabilities University, maintains a collection of over 9,500 works of art.
Donations of artwork to the Museum are recorded by the The University maintained accounts with a local bank to University of Florida Foundation, Inc. (Foundation), and are process general operating expenses and payroll transactions.
included with reported "Permanent Collections" as further Funds in excess of current need, including float, were invested.
explained in Note 9 of the Foundation's audited financial As a result, the University's records showed a temporary cash statements for the fiscal year ended June30, 2014. Purchases overdraft for the amount of outstanding checks not presented of artwork by the Museum are included with the University's as of June 30, 2014. This did not, however, represent an reported Nondepreciable Capital Assets as presented in overdraft in the University's depository accounts.
Table 9.
UnearnedlRevenu Lng-T rm Liabl' es Unearned Revenue includes amounts received prior to the Long-term liabilities of the University at June 30, 2014, end of the fiscal year but related to subsequent accounting include capital improvement debt payable, loans and notes periods. Unearned Revenue, as of June 30, 2014, is payable, installment purchase agreements payable, capital summarized in Table 10. leases payable, compensated absences payable, other postemployment benefits payable, liability for self-insured claims, and other noncurrent liabilities. Long-term liability activity for the fiscal year ended June 30, 2014, is presented in Table 11.
Am A Beginning Ending Current Description Balance Additions Reductions Balance Porton Capital Asset-Related Debt:
Capital Improvement Debt Payable $ 119,401,170 $ 71;005,090 $ 8,827,548 $ 181,578,712 $ 8,605,000 Loans and Notes Payable 5,000,000 6,472,538 11,472,538 280,476 Installment Purchase Agreements Payable 1,618,078 2,919,715 1,177,907 3,359,886 1,262,710 Capital Leases Payable 3,075,763 128,780 ....-__2,946,983 137,086 Total Capital Asset-Related Debt 129,095,011 80,397,343 10,134,235 199,358,119 10,285,272 Other Long-Term Liabilities:
Compensated Absences Payable 113,448,325 24,145,957 11,643,673 125,950,609 11,657,892 Other Postemployment Benefits Payable 139,775,000 48,595,000 7,680,000 180,690,000 Liability for Self-Insured Claims (Note 16) 56,147,461 (5,784,153) 4,561,774 45,801,534 9,195,899 Other Noncurrent Liabilities 18,768j201 286,310 18,481,891 Total Long-Term Liabilities $ 457,233,998 $ 147,354,147 $ 34,35A.992 $ 570,m153 $ 31,139,063 A Component Unit of the State of Florida 1 31
Notes A. CAPITAL IMPPOVEMENT DEBT PAYABLE On November 20, 2013, the Florida Board of Governors, on behalf of the University, issued $24,805,000 of University of Capital improvement debt is issued to construct student Florida Housing Dormitory Revenue Bonds, Series 2013A. The housing facilities, parking garages, and various other bonds are repaid from dormitory fees charged to students.
University facilities. The outstanding debt for student housing $19,600,000 of the proceeds are used to construct a 255-bed and parking garages is secured by a pledge of a portion of dormitory with state-of-the-art features complying with the housing rental revenues and parking fees. The outstanding Americans with Disabilities Act. The remaining $5,205,000 will debt for the Clinical Translational Research Building is secured refund portions of the Student Housing Auxiliary Debt Bonds, by a pledge of a portion of indirect costs revenues received Series 2005A, maturing in years 2016 through 2023. The new by the College of Medicine. Pledged revenues are equal to bonds will mature in annual increments starting on July 1, the remaining debt service requirements to maturity for the 2014, and ending on July 1, 2033. Interest payments are due capital improvement debt. semiannually on January I and July I beginning July 1, 2014.
On September 10, 2013, the Florida Board of Governors, on A summary of the University's capital improvement debt behalf of the University, issued $41,540,000 of University payable at June 30, 2014, appears in Table 12.
of Florida Student Activity Revenue Bonds, Series 2013. The bonds are repaid from student activity and service fees and Annual requirements to amortize all capital improvement the proceeds are used to renovate and expand the J. Wayne debt outstanding as of June 30, 2014, appear in Table 13.
Reitz Union, the community center of the University. The bonds will mature in annual increments starting on July 1, 2014, and ending on July 1, 2033. Interest payments are due semiannually on January 1 and July 1 beginning January 1, 2014.
Amount Outstanding Amount of Interest Maturity Type and Series Original Issue Principal Interest Rates Date Student Housing Auxiliary Debt:
2005A Housing $ 37,610,000 $ 28,870,000 $ 12,312,948 4.000 to 5.125% 2030 2011A Housing 16,350,000 12,795,000 3,035,800 3.000 to 4.000% 2028 2012A Housing 26,500,000 24,590,000 8,309,088 3.000 to 4.000% 2031 2013A Housing 24,805,000 24,445,000 10,129,506 3.000 to 5.000% 2033 Total Student Housing Debt 1105,26M,0 90,700,000 33,787,342 Parking Garage Auxiliary Debt: 3,475,000 1998 Parking Garage 10,000,000 .428,174 4.500 to 4.750% 2019 2007A Parking Garage 20,770,000 16,110,000 5166,179 3.600 to 4.375% 2028 Total Parking Garage Debt 30,770,000 119,585,00 5,594,353 Other University of Florida Revenue Bonds:
2011 Clinical Translational Research Building 29,838,000 26,615,000 10,822,815 4.433% 2030 2013 Student Activity 41,540,000 40,495,000 20,932,272 4.000 to 5.000% 2033 Total Other University of Florida Revenue Bonds 71378,000 67,110,000 31,755,087 Plus: Unamortized Premiums .r5,725;879 Less: Unamortized Discounts (295,280)
Less: Unamortized Refunding Losses (1,246,887)
Total Capital Improvement Debt $ 207,413,000 $ 181,578,712 $ 71,136,782 32 1 University of Florida
2013-2014 Annual Financial Report IT, a"!
Fiscal Year Ending June 30 Principal Interest Total Fiscal Year 2015 $ 7,630,348 $16,235,348 Ending June_30 .......
.............
Principal ...............
...
..
...
Interest.. Total
$ 8,605,000 2016 9,484,000 7,284,541 16,768,541 2015 $ 1,262,710 $ 66,415 $ 1,329,125 2017 9,873,000 6,881,433 16,754,433 2016 784,928 41,222 826,150 2018 10,357,000 6,443,331 16,800,331 2017 677,952 23,510 701,462 2019 10,797,000 5,968,288 16,765,288 2018 419,419 9,375 428,794 2020-2024 50,770,000 22,943,633 73,713,633 214,877 217,388 2019 2,511 2025-2029 52,657,000 11,730,449 64,387,449 2030-2034 24,852,000 2,254,759 27,106,759 Total Minimum Payments $ 3,359,886 $ 143,033 $ 3,502,919 Total Principal & Interest 177,95,8000 71,136,782 248,531,782 Plus: Unamortized Premiums 5,725,879 5,725,879 Less: Unamortized Discounts (295,280) (295,280) D. CAPITAL LEASES PAYABLE Less: Unamortized Refunding Losses (1,246,887) - (1,246,887) On June 8, 1994, the former Board of Regents, on behalf of Total $181,578,712 $71,135,781$252,715,44 the University of Florida, entered into a lease agreement with the University of Florida Foundation, Inc. (the Foundation), a direct support organization (component unit) of the University.
Under the terms of the agreement, the University agreed to B. LOANS AND NO ITES PAYABLE lease from the Foundation a 607-space parking garage (the On August 30, 2013, the University borrowed $6,472,538 garage) located nearthe Health Science CenterAdministrative at an interest rate of 2 .33%, to finance the cost of heating, Offices for a period of thirty years beginning July 1, 1994.
ventilation, and air conditioning (HVAC) update and Lease payments of $100,000 annually are due each July 1.
renovation of J. Waynee Reitz Student Union. The principal The garage was simultaneously acquired by the Foundation and interest cost is ex pected to be met by cost savings of from Shands Teaching Hospital and Clinics, Inc. (Shands), also note matures on August 31, 2029, and a component unit, and financed by the Foundation through the newer system. The principal and interest p.ayments are made annually. On June the issuance of a promissory note secured by a non-recourse 17, 2013, the University borrowed $5,000,000 at an interest mortgage containing payment terms similar to those in the rate of 3.58% for a simil ar renovation at Willard M. Fifield Hall. lease agreement between the Foundation and the University.
The note matures on qovember 1, 2033, and principal and Lease payments from the University to the Foundation and interest payments are made annually. Annual requirements from the Foundation to Shands were based on an original to amortize the two ouitstanding notes as of June 30, 2014, construction cost of $3,000,000 and no interest. For reporting purposes, the lease is considered a capital lease under GASS appear in Table 14.
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The initial obligation was discounted at an imputed interest rate of 6.45% and was Fiscal Year Ending June 30 Principal . .Interest Total recorded at $1,382,470. The asset, which is included in the 2015 $ 280A476 $ 523,747 $ 804,223 Property Under Capital Lease and Leasehold Improvements,
- niR 527465 .. 17 57R R4 041 was recorded at cost to Shands of $3,000,000.
2016 2017 551,318 .303,364 854,682 2018 572,130 288,408 860,538 On March 1, 2000, the University, acting for and on behalf of 2019 597,825 272,820 870,645 the former Board of Regents, entered into a lease agreement 2020-2024 3,099,954 1,121,935 4,221,889 2025-2029 3,818,784 658,504 4A477,288 with Shands. Under the terms of the agreement, the University 2030-2034. 2,024,586 217,699 2,242,285 agreed to lease from Shands an 800-space parking garage
$11,472,538 $ 3,704,E53 $15,175,591 located near the Health Science Center Administrative Offices Total
. = for a period of thirty years beginning March 1, 2000. Annual lease payments of $227,167 are due each May 1. beginning C. INSTALLMENT P'UPCHASE AGPEEMENTS May 1, 2001. Lease payment amounts were based on an original construction cost of $6,815,002 and no interest. For PAYABLE reporting purposes, the lease is considered a capital lease The University has ente red into several installment purchase under GASB Statement No. 62. The initial obligation was agreements for the p urchase of equipment reported at discounted at an imputed interest rate of 6.45% and was
$5,973,451. The stated interest rates ranged from 0.00% to recorded at $2,981,939. The asset, which is included in the 5.38%. Future minimum payments remaining under installment Property Under Capital Lease and Leasehold Improvements, purchase agreements as of June 30, 2014, appear in Table 15. was recorded at cost to Shands of $6,815,002. A summary A Component Unit of the State of Florida 1 33
Notes of pertinent information related to the two capital leases F. OTHEP POSTEMPLOYMENT appears in Table 16. BENEFITS PAYABLE The University follows GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for certain postemployment healthcare benefits administered by the State Group Health Interest Original Outstanding Insurance Program.
Capital Leases Rate Balances Balance Plan Description. Pursuant to the provisions of Section Shands Garage (607 spaces) 6.45% $ 1,382,470 $ 720,568 Shands Garage (800 spaces) 6.45% 2,981,939 2,226,415 112.0801, Florida Statutes, all employees who retire from the University are eligible to participate in the State Group Health Total $ 4,364,409 $ 2,946,983 Insurance Program, an agent multiple-employer, defined-benefit plan (Plan). The University subsidizes the premium Future minimum payments underthe capital lease agreements rates paid by retirees by allowing them to participate in the and the present value of the minimum payments as of June Plan at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. These 30, 2014, are presented in Table 17.
rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the Plan, on average, than those of Fiscal Year active employees. Retirees are required to enroll in the Federal Ending June_30 Principal *Interest Medicare program for their primary coverage as soon as they are eligible. A stand-alone report is not issued and the Plan 2015 $ 137,086 S 190,080 $ 327,166 2016 145,928 181,238 327,166 information is not included in the report of a public employee 2017 155,341 171,826 327,167 retirement system or another entity.
2018 165,360 161,806 327,166 2019 176,026 151,141 327,167 Funding Policy. Plan benefits are pursuant to provisions 2020-2024 1,065,809 570,025 1,635,834 of Section 112.0801, Florida Statutes, and benefits and 2025-2029 888,030 247,804 1,135,834 2030 213,403 13,765 227,168 contributions can be amended by the Florida Legislature. The
........-..
..... . . . ..................... University has not advance-funded or established a funding Total $ 2,946,983 $ 1,687,685 $ 4,611468 methodology for the annual Other Postemployment Benefit (OPEB) costs or the net OPEB obligation, and the Plan is financed on a pay-as-you-go basis. For the 2013-14 fiscal year, 2,412 retirees received postemployment healthcare E. COMPENSATED ABSENCES PAYABLE benefits. The University provided required contributions of Employees earn the righ t to be compensated during absences $7,680,000 toward the annual OPEB cost, comprised of benefit for annual leave (vacatic)n) and sick leave earned pursuant to payments made on behalf of retirees for claims expenses (net Board of Governors Reg ulations, University Regulations, and of reinsurance), administrative expenses, and reinsurance bargaining agreements. Leave earned is accrued to the credit premiums. Retiree contributions totaled $14,385,000, which rnf th* *mnlnvi* *nd re crrd*rr are kent on each emnlnvee'sj represents 1.3% of covered payroll.
unpaid (unused) leave balance. The University reports a Annual OPEB Cost and Net OPEB Obligation. The University's liability for the accrued leave in accordance with its policy annual OPEB cost (expense) is calculated based on the regarding leave payment upon separation from employment. annual required contribution (ARC), an amount actuarially However, Noncapital State Appropriations fund only the determined in accordance with the parameters of GASB portion of accrued leave that is used or paid in the current 45. The ARC represents a level of funding that if paid on an fiscal year. Although the University expects the liability to ongoing basis, is projected to cover normal cost each year and be funded primarily from future appropriations, generally amortize any unfunded actuarial liabilities over a period not to accepted accounting principles do not permit the recording exceed 30 years. Table 18 shows the University's annual OPEB of a receivable in anticipation of future appropriations. cost for the fiscal year, the amount actually contributed to the At June 30, 2014, the estimated liability for compensated Plan, and the changes in the University's net OPEB obligation.
absences, which includes the University's share of the Florida Retirement System and FICA contributions, totaled
$125,950,609. The current portion of the compensated absences liability is the amount expected to be paid in the coming fiscal year, and is based on actual payouts over the last three years, calculated as a percentage of those years' total compensated absences liability.
34 1 University of Florida
2013-2014 Annual Financial Report that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial Description Amount accrued liabilities for benefits.
Normal Cost (service cost for one year) $ 23,897,000 Actuarial Methods and Assumptions. Projections of Amortization of Unfunded Actuarial Accrued Liability 22,113,000 benefits for financial reporting purposes are based on the Interest on Normal Cost and Amortization 1,840,000 substantive plan provisions, as understood by the employer Annual Required Contribution 47,850000 and participating members, and include the types of benefits Interest on Net OPEB Obligation 5,591,000 provided at the time of each valuation and the historical Adjustment to Annual Required Contribution (4,846,000) pattern of sharing of benefit costs between the employer and participating members. The actuarial methods and Annual OPEB Cost (Expense)
Contribution Toward the OPEB Cost (7,680,000) assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued Increase in Net OPEB Obligation 40,915,000 liabilities and the actuarial value of assets, consistent with the Net OPEB Obligation, Beginning of Year 139,775,000
.................... long-term perspective of the calculations.
Net OPEB Obligation, End of Year $ 180,690,000 The University's OPEB actuarial valuation as of July 1, 2013, used the entry-age cost actuarial method to estimate the The University's annual OPEB cost, the percentage of annual actuarial accrued liability as of June 30, 2014, and the OPEB cost contributed to the Plan, and the net OPEB obligation University's estimated 2013-14 fiscal year annual required as of June 30, 2014, and for the two preceding fiscal years, are contribution. This method was selected because it is the presented in Table 19. same method used for the valuation of the Florida Retirement System. Because the OPEB liability is currently unfunded, the actuarial assumptions included a 4% rate of return on invested assets. The actuarial assumptions also included a payroll growth rate of 4% per year and an inflation rate of Percentage 3%. Healthcare trend rates were 7.4%, 7.0%, and 8.2% for of Annual the first three years respectively for all retirees in the PPO Annual OPEB Cost Net OPEB Fiscal Year OPEB Cost Contributed Obligation (Preferred Provider Organization) Plan and were 3.9%, 7.8%,
and 8.3% for the first three years for all retirees in the Health 2011-12 $ 47,652,000 19.7% $ 102,458,000 Maintenance Organization (HMO) Plan. The PPO and HMO 2012-13 47,382,000 21.2% 139,775,000 2013-14 48,595,000 15.8% 180,690,000 healthcare trend rates both grade down to an ultimate rate of 5.0% over 70 years. The unfunded actuarial accrued liability is being amortized over 30 years using the level percentage of projected payroll on an open basis.
Funded Status and Funding Progress. As of July 1, 2013, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $663,395,000 and the actuarial Interdepartmental value of assets was SO, resulting in an unfunded actuarial accrued liability of $663,395,000 and a funded ratio of 0%.
The covered payroll (annual payroll of active participating Interdepartmental sales between auxiliary service employees) was $1,072,983,725 for the 2013-14 fiscal year, departments and other institutional departments have and the ratio of the unfunded actuarial accrued liability to the been eliminated from expenses and revenues for reporting covered payroll was 61.8%.
purposes. The interdepartmental transactions eliminated in Actuarial valuations of an ongoing plan involve estimates the financial statement preparation totaled $114,768,852 for of the value of reported amounts and assumptions about the fiscal year ended June 30, 2014.
the probability of occurrence of events far into the future.
Examples include assumptions about future employment and termination, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the Retirement Programs annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. A. FLORIDA RETIREMENT SYSTEM The Schedule of Funding Progress, presented as required Essentially all regular employees of the University are eligible supplementary information following the Notes to the to enroll as members of the State-administered Florida Financial Statements, presents multiyear trend information Retirement System (FRS). Provisions relating to the FRS A Component Unit of the State of Florida 1 35
Notes are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Percent of Gross Salary Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. The FRS is Class Employee Employer(Al a single retirement system administered by the Department Florida Retirement System, Regular 3.00% 6.95%
of Management Services, Division of Retirement, and consists Florida Retirement System, Senior Management Service 3.00% 18.31%
of two cost-sharing, multiple employer retirement plans and 19.06%
Florida Retirement System, Special Risk 3.00%
other nonintegrated programs. These include a defined- Deferred Retirement Option Program-Applicable benefit pension plan (Plan), with a Deferred Retirement Option to members from all of the above classes 0.00% 12.84%
Program (DROP), and a defined-contribution plan, referred to Florida Retirement System, Reemployed Retiree (B) (B) as the FRS Investment Plan (Investment Plan).
(A) Employer rates for each membership class include 1.20% for health Employees enrolled in the Plan prior to July 1, 2011, vest at six insurancesubsidy.Also, employer rates,otherthan for DROPparticipants, include .03% for administrativecosts of the Investment Plan.
years of creditable service and employees enrolled in the Plan (B) ContributionRates are dependent upon retirement class in which on or after July 1, 2011, vest at eight years of creditable service.
reemployed.
All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk, who are eligible for normal retirement benefits at age 55 The University's liability for participation is limited to the or at any age after 25 years of service. All members enrolled in payment of the required contribution at the rates and the Plan on or after July 1, 2011, once vested, are eligible for frequencies established by law on future payrolls of the normal retirement benefits at age 65 or any time after 33 years University. There were 8,431 University participants during of creditable service, except for members classified as special the 2013-14 fiscal year. The University's contributions for the risk, who are eligible for normal retirement benefits at age 60 fiscal years ended June 30, 2012, June 30, 2013, and June or at any age after 30 years of service. Members of both Plans 30, 2014, totaled S16,712,175, $17,809,204, and $26,821,475 may include up to 4 years of credit for military service toward respectively, which were equal to the required contributions creditable service. The Plan also includes an early retirement for each fiscal year. For the fiscal year ended June 30, 2014, provision; however, there is a benefit reduction for each year a the employee contributions totaled $8,939,009.
member retires before his or her normal retirement date. The As provided in Section 121.4501, Florida Statutes, eligible FRS Plan provides retirement, disability, and death benefits, and members may elect to participate in the Investment Plan in annual cost-of-living adjustments. lieu of the FRS defined-benefit plan. University employees DROP, subject to provisions of Section 121.091, Florida already participating in the State University System Statutes, permits employees eligible for normal retirement Optional Retirement Program or the DROP are not eligible under the Plan to defer receipt of monthly benefit payments to participate in this program. Employer contributions are while continuing employment with an FRS employer. An defined by law, but the ultimate benefit depends in part on employee may participate in the DROP for a period not to the performance of investment funds. The Investment Plan exceed 60 months after electing to participate. During the is funded by employer and employee contributions that are period of DROP participation, deferred monthly benefits are based on salary and membership class (Regular Class, Senior held in the FRS Trust Fund and accrue interest. Management Service Class, etc.). Contributions are directed to individual member accounts, and the individual members The State of Florida establishes contribution rates for allocate contributions and account balances among various participating employers and employees. Effective July 1, 2011, approved investment choices. Employees in the Investment employees were required to contribute 3% of gross salary Plan vest at one year of service. There were 1,823 University towards retirement. Contribution rates during the 2013-14 participants during the 2013-14 fiscal year. Required employer fiscal year are presented in Table 20.
contributions made to the Investment Plan totaled S5,289,277 and employee contributions totaled $2,225,208.
Financial statements and other supplementary information of the FRS are included in the State's Comprehensive Annual Financial Report, which is available from the Florida Department of Financial Services. An annual report on the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Division of Retirement's web site (www.frs.myflorida.com).
36 University of Florida
2013-2014 Annual Financial Report B. STATE UNIVERSITY SYSTEM OPTIONAL C. INSTITUTE OF FOOD AND AGRICULTURAL RETIREMENT PROGRAM SCIENCES SUPPLEMENTAL RETIREMENT Section 121.35, Florida Statutes, provides for an Optional In 1984, the Florida Legislature enacted the Institute of Retirement Program (Program) for eligible university Food and Agricultural Sciences Supplemental Retirement instructors and administrators. The Program is designed to Act to provide a supplement to the monthly retirement aid State universities in recruiting employees by offering more benefit being paid under the Federal Civil Service Retirement portability to employees not expected to remain in the FRS for System to retirees of the Institute of Food and Agricultural eight or more years. Sciences (IFAS) at the University of Florida. The supplement is designated for IFAS cooperative extension employees The Program is a defined-contribution plan, which provides employed before July 1, 1983, who are not entitled to benefits full and immediate vesting of all contributions submitted from either a State-supported retirement system or social to the participating companies on behalf of the participant. security based on their service with IFAS. It was intended to Employees in eligible positions can make an irrevocable compensate these IFAS employees for the difference between election to participate in the Program, ratherthan the FRS, and their Civil Service benefit and the benefits an FRS member purchase retirement and death benefits through contracts receives, which include a social security benefit. No additional provided by certain insurance carriers. The employing persons can become eligible for this supplement.
university contributes 5.14% of the participant's salary to the participant's account, 2.19% to cover the unfunded actuarial There were 25 University participants during the 2013-14 liability and 0.01% to cover the administrative costs, for a fiscal year. Required employer contributions made to the total of 7.34%. Effective July 1, 2011, employees are required program totaled $430,243. Employees do not contribute to to contribute 3.0% of the employee's salary. Additionally, the this program.
employee may contribute, by payroll deduction, an amount not to exceed the percentage contributed by the University to the participant's annuity account. The contributions are D. OTHER RETIREMENT PROGRAMS invested in the company or companies selected by the Some University employees participate in the U.S. Civil Service participant to create a fund for the purchase of annuities at Retirement System. Thirty-one employees were covered by retirement. the U.S. Civil Service Retirement System during the 2013-There were 5,765 University participants during the 2013- 14 fiscal year. Employer contributions totaled S178,938, and 14 fiscal year. Required employer contributions made to the employee contributions totaled $178,938.
Program totaled S31,843,739 and employee contributions totaled $23,799,258.
Notes To nstruction." omin anitmJne 1 , e The University's construction commitments at June 30, 2014, are presented in Table 21.
Balance Project Title Total Commitment Completed to Date Committed
.................... ,. ..
..........
.................... ... ....
.. ...........
.... .. ...... .... ......
......
.........
Reitz Union Expansion and Renovation $ 70,172,877 $ 21,092,791 S 49,080,086 Chemical Biology Building - Chemistry 65,166,293 5,007,978 60,158,315 Harrell Medical Education Building 45,419,000 10,042,443 35,376,557 Joint Use Library Storage Facility 26,660,000 1,516,636 25,143,364 Heavener Hall - School of Business Building 22,650,000 14,822,513 7,827,487 Cypress Hall - Single Student Housing 2015 21,900,000 3,957,784 17,942,216 PK Yonge Middle and High School Expansion 18,830,800 285,950 18,544,850 Energy Efficiencies for HVAC, Roof and Building Automation Controls Entomology and Nematology 5,879,268 4,289,064 1,590,204 Broward Hall - Bathrooms, Lounges, Apartment Renovation 5,786,445 4,179,908 1,606,537 Corry Village Building 288 Renovation 4,927,625 3,030,344 1,897,281 Chilled Water Plant Boiler Replacement 4,461,317 2,589,435 1,871,882 Marston Science Library Renovation 4,099,339 2,732,843 1,366,496 Dasburg President's House :4,000,000 529,549 3,470,451 Thomas Hall Window Replacement 3,258,400 1,061,361 2,197,039 Buckman Hall Air Conditioning Design & Installation 2,952,800 1,446,451 1,506,349 Corry Village Building 282 Renovation 2,735,640 1,770,353 965,287 Corry Village Building 277 Renovation 2,719,730 348,480 2,371,250 Buckman Hall Bathroom, Kitchen, and Plumbing Renovation 2,659,000 1,454,559 1,204,441 Corry Village Building 286 Renovation 2,533,255 1,956,515 576,740 Corry Village Building 283 Renovation 2,431,865 373,271 2,058,594 Buckman Hall Window Replacement 2,274,757 1,011,745 1,263,012 CorryVillage Building 276 Renovation .2,141,334 1,111,203 1,030,131 SCADA-(Steam Piping) Infrastructure-Campus 2,046,297 1,779,000 267,297 Austin Cary Conference Center 1,920,840 1,809,780 111,060 Fume Hoods Chemical Lab 28 1,901,609 2,500 1,899,109 Air Handling Units Replacement, Fire Sprinkler Installation and Reroof- Dental Science Building 1,901,500 1,375,373 526,127 Chilled Water Plant 10 .1,832,611 69,263 1,763,348 Gator Corner Dining Addition 1,785,818 1,621,928 163,890 Electrical Sub Station 10 1,686,832 306,470. 1,380,362 Communicore Basement Sprinkler Installation and Ductwork Replacement 1,459,007 1,023,203 435,804 MarstonScience Library Renovation - Smathers Map Room 1,441,506 806,535 634,971 Broward Hall - Fire Sprinkler and Alarm Systems .1,371,510 217,683 1,153,827 Broward Hall - Electrical Upgrades :1;291,117 1 8,717 1,282,400 Anatomical Pathology and Clinical Pathology Areas Renovation - Necropsy 1,281,006 1,220 ,160: 60,846 Government House Rehabilitation - St Augustine - Phase II 1,200,000 872,568 327,432 Weil Hall Chiller Plant Replacement 1,152,307 67,849 1,084,458 Lacy C. Rabon Chilled Water Plant 1,120,834 1,025,219 95,615 Stetson Medical Science Building Lab Suite Renovation - Pulmonary 1,106,916 831,726 275,190 Gainesville Communication Services Building 1,096,816 1,061,651 35,165 Campus Security System Enhancement 1,004,900 655,579 349,321 McKnight Brain Institute Lab Li -151 Renovation 1,000,000 928,421 71,579 Subtotal 351,261,171 100,294,801 250,966,370 Projects Under $1,000,000 51,279,984 30,146,532 21,133,452 Total $ 402,541,155 $ 130,441=333 $ 272,099,822 R isk Management Programs participates in State self-insurance programs providing insurance for property and casualty, workers' compensation, general liability, fleet automotive liability, Federal Civil Rights, and employment discrimination liability. During the 2013-A. STATE SELF-INSUPANCE PPOGPAMS 14 fiscal year, for property losses, the State retained the The University is exposed to various risks of loss related to first $2 million per occurrence for all perils except named torts; theft of, damage to, and destruction of assets; errors windstorm and flood. The State retained the first $2 million and omissions; injuries to employees; and natural disasters. of losses per occurrence with an annual aggregate retention Pursuant to Section 1001.72(2), Florida Statutes, the University of $40 million for named windstorm and flood losses. After 38 University of Florida
2013-2014 Annual Financial Report the annual aggregate retention, losses in excess of S2 million losses which are subject to Section 768.28, Florida Statutes, per occurrence were commercially insured up to $50 million including legislative claims bills, that in combination with the for named windstorm and flood losses through February 15, waiver of immunity limits described in Section 768.28, Florida 2014, and increased to S54 million starting February 16, 2014. Statutes, do not exceed Sl million per claim and, for voluntary For perils other than named windstorm and flood, losses in settlements defined by the Program's Memorandum of excess of S2 million per occurrence were commercially insured Protection, S2 million per claim. For those protected entities up to $200 million; and losses exceeding those amounts not subject to Section 768.28, Florida Statutes, the Program were retained by the State. No excess insurance coverage is provides $2 million per claim. The per claim limit of liability provided for workers' compensation, general and automotive protection for the participants does not exceed S2 million per liability, Federal Civil Rights and employment action coverage; claim in the event more than one protected entity is involved all losses in these categories are completely self-insured by in the same claim or action.
the State through the State Risk Management Trust Fund Pursuant to Board of Governors' Regulation 10.001(2), the established pursuant to Chapter 284, Florida Statutes.
University of Florida Self-Insurance Program Council has Payments on tort claims are limited to $200,000 per person, created the University of Florida Healthcare Education and $300,000 per occurrence as set by Section 768.28(5),
Insurance Company (H EIC), a captive insurancecompanywhich Florida Statutes. Calculation of premiums considers the cash is wholly owned by the Board of Governors and domiciled in needs of the program and the amount of risk exposure for the State of Vermont. HEIC is managed by a Board of Directors each participant. There have been no significant reductions in created by the Board of Governors. HEIC provides coverage insurance coverage from the prior year coverage. Settlements for claims that are in excess of the protections afforded by have not exceeded insurance coverage during the past three the University of Florida Self-Insurance Program, at limits fiscal years.
of $4 million per-legislative claims bill coverage for insured Pursuant to Section 110.123, Florida Statutes, University participants subject to Section 768.28, Florida Statutes, and employees may obtain healthcare services through $3 million per claim for voluntary settlements entered into by participation in the State's group health insurance plan or the Self-Insurance Program Council and insured participants through membership in a health maintenance organization that are not subject to Section 768.28, Florida Statutes. HEIC plan under contract with the State. The State's risk financing provides additional limits of liability coverage of $50 million activities associated with State group health insurance, such per claim and in the aggregate, which is in excess of the as risk of loss related to medical and prescription drug claims, coverages described above. The excess insurance is paid to are administered through the State Employees' Group Health claimants on a first-come, first-serve basis.
Insurance Trust Fund. It is the practice of the State not to Claims settlement and adjustment expenses are accrued purchase commercial coverage for the risk of loss covered by as expenses and liabilities of the University of Florida Self-this Fund. Additional information on the State's group health Insurance Program and University of Florida Healthcare insurance plan, including the actuarial report, is available from Education Insurance Company, for the estimated settlement the Florida Department of Management Services, Division of value of claims that is reported as a Liability for Self-State Group Insurance.
Insured Claims. The estimated settlement value of claims was determined based on the judgment and experience of management and the Self-Insurance Program Council through B. UNIVERSITY SELF-INSURANCE PROGRAMS a case-by-case review. Estimated losses from incurred but The University of Florida Self-Insurance Program was unreported incidents are accrued based upon the findings of reestablished by the Florida Board of Governors effective July casualty actuaries.
1, 2006, by amending Board of Governors' Regulation 10.001, The amount of Liability for Self-Insured Claims accrued merging the then JHMHC Self-Insurance Program and the for the Self-Insurance Programs at June 30, 2014, was prior University of Florida JHMHC/Jacksonville Self-Insurance
$45,801,534 for compensatory losses and for allocated Program. The Self-Insurance Program provides general and expenses. The Liability for Self-Insured Claims was accrued at professional liability protection for the University of Florida an undiscounted present value. The liability declined because Board of Trustees (UFBOT) on behalf of the six health colleges the actuary recommended a decrease in funding that can be of the JHMHC, the College of Veterinary Medicine teaching attributed to: the sovereign immunity granted to Shands and hospitals, the Student Health Care Center, its direct support Shands Jacksonville as of July 1, 2011; lower case reserves organization, and their employees and agents. Hospital required for more mature years; and the decrease in the professional liability protection, including general liability, is possibility of claims reaching the HEIC layer. As a result, the provided to ShandsTeaching Hospital and Clinics, Inc. (Shands),
Self-Insurance Claims and Expenses on the Statement of Shands Jacksonville Medical Center, Inc. (a subsidiary of Revenues, Expenses and Changes in Net Position are negative Shands Jacksonville HealthCare, Inc. - Shands Jacksonville),
for the 2013-14 fiscal year.
other entities statutorily authorized to participate in the Self-Insurance Program, and their employees and agents. The aggregate amount of claims liabilities for which annuity The UFBOT and other immune entities are protected for contracts have been purchased in the claimants' names, A Component Unit of the State of Florida 1 39
Notes resulting in the removal of the related liabilities from the Changes in the balances of claims liabilities for the Self-Statement of Net Position, totals $117,162 for the Self- Insurance Program and HEIC during the 2012-13 and 2013-14 Insurance Program at June 30, 2014. These annuities have fiscal years are presented in Table 22.
been assigned to third parties, and all claimants have fully and completely released the Self-insurance Program participants from all actual and contingent liability.
Current Claims Liabilities Claims/ Changes Claims Claims Liabilities Fiscal Year Beginning of Year in Estimates (A) Payments End of Year 2012-13 $ 102,831,592 $ (29,286,713) $ (17,397,418) $ 56,147,461 2013-14 56,147,461 (5,784,153) (4,561,774) 45,801,534 (A) The change in estimates of claim costs for the 2012413 and 2013-14 fiscalyears, as determinedby actuary,resulted in:neg:ative CurrentClaims/Changes in Estimates.See Note 16B for more details.
- ,: ,*.***
Litigation And Contingoencies Functional Classifications Amount The University is involved in several pending and threatened Instruction $ 686,759,685 Research 584,733,991 legal actions. The range of potential loss from all such claims Public Service 432,100,137 and actions, as estimated by the University's legal counsel and Academic Support 167,247,282 management, should not materially affect the University's Institutional Support 162,252,432 Depreciation 123,114,297 financial position. Auxiliary Operations 112,306,719 Operation and Maintenance of Plant 94,904,616 The United States Department of Health and Human Services' Scholarships, Fellowships and Waivers, Net 56,659,181 Student Services 35,851,320 and National Science Foundation's Offices of Inspector General, with the United States Department of Justice (civil division), Total Operating Expenses $ Z455,929,660 are investigating the University's practices relating to Federal awards finances and accounting. University management is unable to make a determination of the outcome or estimate costs that the University may incur as a result of this audit. ..... int U it 0 Functional Distribution Of A. BLENDED COMPONENT UNITS
. j Operati..E3, ExpeI ses The University has two blended component units as discussed in Note 1. Financial information for the University's blended The functional classification of operating expenses (instruction, component units is presented in Table 24.
research, etc,) is assigned to each individual transaction based on the nature of the activity. The operating expenses on the Statement of Revenues, Expenses, and Changes in B. DISCRETELY PRESENTED COMPONENT Net Position are presented by natural classifications. Table 23 UNITS presents those same expenses in functional classifications as The University's financial statements include 14 discretely recommended by NACUBO. presented component units as discussed in Note 1. These component units comprise 100% of the transactions and account balances of the aggregate discretely presented component units' columns of the financial statements.
Summary financial information from the most recently available audited financial statements for these component units is presented on the following pages inTables 25,26, and 27.
40 1 University of Florida
2013 201-1 Annual Financial Poport
'XI
..... ..
A4., 0.!. 44jkAII6 AV-
!"o A
wit
..............
'IF A Coirponent Unit of thc, State of Flonchi 411
Notes and Parking Services provides the University with safe and adequate parking facilities. Several parking garages have been constructed from the proceeds of revenue-backed I Segment Information debt instruments. The Department of Housing and Residence Education provides safe and affordable living space for A segment is defined as an identifiable activity (or grouping students of the University of Florida. Capital improvement of activities) that has one or more bonds or other debt debt has been issued over the years to provide funding for the instruments outstanding, with a revenue stream pledged construction of facilities to house students of the University.
in support of that debt. In addition, the activity's related A summary of the financial activity for these segments is revenues, expenses, gains, losses, assets, and liabilities are presented in Table 28.
required to be accounted for separately. Transportation
2013-2014 Annual Financial Report
-o-~ ~ v~ *oo 4
- Healthcare . Total Education Blended Total Self-Insurance Insurance Component Primary Program Company Units University Eliminations Government
.. ... 32,882.............
.......
..........
CONDENSED STATEMENT OF NET POSITION Assets Due from University/Blended Component Units $ $ 32,882 $ 32,882 $ $ (32,882) $ -
Current Assets 165,875 19,339 185,214 1,155,171 (1,860) 1,338,525 Capital Assets, Net 1,714,765 - 1,714,765
.Other Noncurrent Assets 189,562 189,562 Total Assets 165,875 52,221 218,096 3,059,498 (34,742) 3,242,852 (32,882)... ...............
Liabilities Dueto University/Blended Component Units 32,882 32,882 215,644 (32,882) 214,916 Current Liabilities 1,128 4 1,132 (1,860)
Noncurrent Liabilities 34,952 10,850 45,802 493,342 539,144 Total Liabilities 68,962 10,854 79,816 708,986 (34,742) 754,060 Net Position Net Investment in Capital Assets 96,913 1,565,313 - 1,565,313 Restricted - Expendable Other 41,67 138,280 636,630 - 774,910 Unrestricted S- 148,569 148,569 Total Net Position
$ 96,913
$ 41.367 $ 13828 $ 2,350,512 .......
5,..........
..... $~
- 488,792 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Operating Revenues $ 10,976 $ 684 $ 11,660 $ 1,655,962 $ (7,752) S 1,659,870 Depreciation Expense (123,114) - (123,114)
Other Operating Expenses (6,348) 6,444 96 (2,340,664) 7,752 (2,332,816)
Operating Income (Loss) 4,628 7,128 11,756 (807,816) - (796,060)
Nonoperating Revenues (Expenses)
- Investment Income, Net of Expenses 1,972 564 2,536 31,340 33,876 Net Increase in the Fair Value of Investments 9,944 2,363 12,307 20,217 32,524 Other Nonoperating Revenues 788,117 788,117 Net Nonoperating Revenues . .11,916 2,927 14,843 839,674 854,517 Other Revenues, Expenses, Gains, or Losses 61,374 61,374 Increase (Decrease) in Net Position 16,544 10,055 26,599 93,232 119,831 Net Position, Beginning of Year 80,369 31,312 111,681 2,257,280 - 2,368,961 Net Position, End of Year $ 96,913 $ 41,367 $ 138,280 $ 2,350W512 $ - $ Z.488,792 CONDENSED STATEMENT OF CASH FLOWS Net Cash Provided (Used) by Operating Activities $ 1,010 $ 509 S 1,519 $ (630,364) $ (4,139) $ (632,984)
Noncapital Financing Activities 763,957 5,998 769,955 Capital and*Related Financing Activities (58,327) (58,327)
Investing I Activities 640 (509) 131 (78,915) (78,784)
Net Increase (Decrease) in Cash and Cash Equivalents 1,650 1,650 (3,649) 1,859 (140)
Cash and Cash Equivalents, Beginning of Year 152 152 200 (46) 306
$ ... . $
.Cash and Cash Equivalents, End of Year.. $ 180= $ (3,449) $ 1,813 $ 166 A Component Unit of the State of Florida 1 43
Notes University University The University of Florida of Florida Athletic Research Foundation, Inc. Association, Inc. Foundation, Inc.
CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 24,582 $ 17,557 $
Other Current Assets 101,223 59,424 139,732 Capital Assets, Net 73,524 171,919 Other Noncurrent Assets 1,772,521 . . . .57,008 Tt ! As t. . . ...
.............
..........
...................
- ....
+.... ....... ....................
........
......
.............
......... .
.... . ............................ ............
- ............................
Total Assets 1,971,850 305,908 139,732 Liabilities Due to Component Units/University 22,405 1,339 25,388 Other Current Liabilities 21,634 69,011 10,965 Noncurrent Liabilities 24,737 82,747 Total Liabilities . , . . . .... .... 68,776
.. . .... .. ............. .... ...... .... ... ............. .... 153,097
..... ...* .....:.... :. 36,353
.......... . .. .. ....................... . .
Net Position Net Investment in Capital Assets 19,445 87,209 .
Restricted-Nonexpendable Endowment 1,196,244 Restricted-Expendable Endowment 380,075 Restricted-Expendable Other 311,209 15,122 Unrestricted (3,899) 50,480 103,379 Total Net Position $ 1,903,074 $ 152,811 $ 103,379 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ .101,807 $ 67,846 $ 30,031 Operating Expenses (154,695) (107,117) (31,310)
Operating Income (Loss) (52,888) (39,271) (1,279)
Nonoperating Revenues (Expenses) and Other Revenues, Expenses, Gains, or Losses Investment Income, Net of Expenses 188,348 1,712 10,184 Net Increase inthe Fair Value of Investments 3,259 8,343 1,134, Other Nonoperating Revenues - 46,211 2,300 Other Nonoperating Expenses 487 (6,380) (540)
Addition to Permanent Endowments 31,577 *- _.
Change in Net Position 170,783 10,615 11,799
.... . . ..... ........ ... .... . . .. ...
Net Position, Beginning of Year 1,732,291 142,196 91,580
.Adjustments to Beginning Net Position Net Position, Beginning of Year! as Restated 1,732,291 142,196 91,580 Net Position, End of Year $ 1,903,074 $ 152,811 $ 103,379 44 1 University of Florida
2013-2014 Annual Financial Report GatorCare University Citrus Total Health of Florida Research and Direct-Management Gator Development Development Support Corporation Boosters, Inc. Corporation Foundation, Inc. Organizations
$ $ 4,399 $ $ $ 46,538 17,081 13,381 826 6,323 337,990
- 46 10,860 256,349 9,681 442 1,839,652 26,762 18,268 11,686 6,323 2,480,529 17,013 453 66,598 26,374 131 379 6,178 134,672 129 107,613 26,374 .17,273 832 6,178 308,883 46 10,860 117,560 442 1,196,686 380,075 279 326,610 388 507 (6) (134) 150,715
$ 388 .$ 995 $ 10,854 $ 145 $ 2,171,646
$ 406 $ 39,230 S 1,085 $ 9,368 $ 249,773 (103) (2,748) (2,098) (18,434) (316,505) 303 36,482 (1,013) (9,066) (66,732) 1,702 53 201,999 12,736 1,219 6,911 56,641 (38,178) (44,611) 6 31,583 303 12 206 (2,102) 191,616 85 983 10,648 2,247 1,980,030 85 983 10,648 2,247 1,980,030
$ 398 $ 995 . 10,854 $ 145 .$ 2,171,646 A Component Unit of the State of Florida 1 45
Notes Florida Florida University of Veterinary University of Total Clinical Florida Medicine Florida Health Practice Jacksonville Faculty Jacksonville Faculty Science Association, Physicians, Association, Healthcare, Associates, Center Inc. _ _ Inc., Inc. Inc. *
- _ Inc. Affiliates CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 3,598 $ 10,703 t 1,004 $ 865 $ - $ 16,170 Other Current Assets 93,224 37,615 7,797 3,033 6,166 147,835 Capital Assets, Net 47,737 17,169 - 3,583 -. 68,489 Other Noncurrent Assets 24,258 . . 24,258 168,817. 65,487 8,801 7,481 6,166 256,752 Total Assets Liabilities Due to Component Units/University 7,384 456 4,987 - 12,827 Other Current Liabilities 16,368 11,937 923 2,125 " 112 31,465 Noncurrent Liabilities 35,354 6,031 ... . . _41,385 923 . . 7, 59,106 18,424 923 7,112 112 85,677 Total Liabilities Net Position Net Investment in Capital Assets 10,925 10,393 3,583 - 24,901 Unrestricted 98,786 36,670 7,878 (3,214) 6,054 146,174 Total Net Position $ .109,711 $ 47,063 $ 7,878 369 $ 6,054 $ 171,075
......~~~~~~ ~~~~~....
... ....-.-.
- :.::-. -.... v .:. :
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ 483,336 $ 229,534 $ 7,984 $ 224 $ 18,008 $ 739,086 Operating Expenses (115,015) (118,723) (411) (31,879) (250) (266,278)
Operating Income (Loss) 368,321 110,811 7,573 (31,655) 17,758 472,808 Nonoperating Revenues (Expenses)
Investment Income, Net of Expenses (352) 40 15 4 (293)
Net Decrease in the Fair Value of Investments (412) - - - (412)
Other Nonoperating Revenue *
- 31,655 - 31,655 Other Nonoperating Expense (357,864) (110,657) (7,448), (15,230) (491,199)
........................... . ....... ,532..... .....................
!2 . 5..
Change in Net Position 9,693 194 140 -2,532 12,559 Net Position, Beginning of Year 100,300 46,944 7,738 ... 369 3,522 158,873 Adjustments to Beginning Net Position (Note 2) (282) (75) (357)
Net Position, Beginning of Year, as Restated 100,018 46,869 7,738 369 3,522 158,516 Net Position, End of Year $ 109,711 $ 47,063 $ 7,878 $ 369 $ 6,054 $ 171,075 46 1 University of Florida
Notes 0 ~*<~<; tK:~2&.~
Shands Total Teaching Shands Shands Hospital Jacksonville Hospital
& Clinics, Inc. HealthCare, Inc. and Others CONDENSED STATEMENT OF NET POSITION Assets Due from Component Units/University $ 60,318 $ $ 60,318 Other Current Assets 391,220 190,149 581,369 Capital Assets, Net 728,652 170,724 899,376 Other Noncurrent Assets 512,522 69,213 581,735
........ 2..................
- 5. ..
.
1,692,712 430,086 2,122,798 Total Assets Deferred Outflows of Resources Accumulated Decrease in Fair Value of Interest Rate Swap Agreements 42,052 42,052 Losses on Debt Refunding 631 631 Total Assets and Deferred Outflows of Resources 1,735,395 430,086 2,165,481 Uabilities Due to Component Units/University 10,129 37,342 47,471 Other Current Liabilities 161,362 88,389 249,751 Noncurrent Uabilities 614,871 136,008 750,879 Total Liabilities 786,362 261,739 1,048,101 Deferred Inflows of Resources Gains on Debt Refunding 11t668 11,668 Total Liabilities and Deferred Inflowsof Resources 798,030 .,:261,739. 1,059,769 Net Position Net Investment in Capital Assets 154,382 40,843. 195,225 Restricted-Nonexpendable Endowment 97 97 Restricted-Expendable Endowment 7,848 4,083 11,931 Unrestricted 775,038 123,421 898,459 Total Net Position $ 937,365 $ 168,347 $ 1,105,712 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues $ 1,199,789 $ 541,067 $ 1,740,856
'11,114,905) (510,612) (1,625,517)
Operating Expenses Operating Income 84,884 30,455 1.15,339 Nonoperating Revenues (Expenses)
- 33,377 (3,376)
Investment Income (Loss), Net of Expenses 30,001 Net Increase in the Fair Value of Investments 3,452 3,452 Other Nonoperating Revenue 11,377 531 11.908 Other Nonoperating Expense (66,399) (24,823) ...............................
((91,222)
. !.'...2.....
..
Change in Net Position 66,691 2,787 69,478 Net Position, Beginning of Year 870,674 165,560 1,036,234 Adjustments to Beginning Net Position Net Position, Beginning of Year, as Restated 870,674 165,560 1,036,234 Net Position, End of Year $ 937=65 $ 168,347 $ 1,105,712 48 1 University of Florida
2013-2014 Annual Financial Report Department of Housing Transportation and and Residence Parking Services Education CONDENSED STATEMENT OF NET POSITION Assets Current Assets $ 8,006,720 $ " 2,423,077 Capital Assets, Net 37,284,943 123,451,973 Other Noncurrent Assets 8,444,173 34,317,019 Total Assets 53,735,836 160,192,069 liabilities Current Liabilities 3,280,285 12,877,118 Noncurrent Liabilities 20,854,410 87,212,297 Total Liabilities 24,134,695 100,089,415
......... .:...........
............
.........
Net Position Net Investment in Capital Assets 16,293,447 6,*Q27,004 Restricted 8,413,774 150,235 Unrestricted 4,893,920 (6,074,585)
Total Nat Position $ 29,601,141 $ 60,102,654 CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES INNET POSITION Operating Revenues (Expenses):
Operating Revenues $ 22,713,921 $ .52,304,777 Depreciation Expense (2,329,606) (4,244,004)
Other Operating Expenses (16,120,771) (39,921,633)
Operating Income 4,263,544 8,139,140 Nonoperating Revenues (Expenses):
Investment Income 181,295 594,516 Interest on Capital Asset-Related Debt (1,068,428) (4,882,718)
Other (781,151) (2,299,104)
Transfers (3,550,742) .4,070,573 Net Nonopereting Revenues (Expenses) (5,219,026) (2,516,733)
Change in Net Position (955,482) 5,622,407 Net Position, Beginning of Year 30,556,623 54,480,247 Not Position, End of Year $ 29,601.141 $ 60,102,664 CONDENSED STATEMENT OF CASH FLOWS Net Cash Provided (Used) by:
Operating Activities $ 7,140,487 $ .. 13,963,577 Noncapital Financing Activities (2,429,555) (8,036,469)
Capital and Related Financing Activities (4,261,119) 4,361,215 Investing Activities (453,039) (11,967,134)
Net Decrease in Cash and Cash Equivalents (3,226) .(1,678,811)
Cash and Cash Equivalents, Beginning of Year 3,226 S .......... 3,006,107 1.320o6 Cash and Cash Equivalents, End of Year $1I,327,296
$ _______
A Component Unit of the State of Florida 1 49
Other Required Supplementary Information UAALosa Actuarial Actuarial Accrued Percentage Actuarial Value of Liability (AAL) Unfnded Funded Covered of Covered Valuation Assets (1) AM. (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (aib) (c) ((b-a)/c) 7/1/2009 $ - 455,677 $ 455,677 0% $ 948,375 48%
7/11/2011 643,742 643,742 0% 996,686 65%
7/1/2013 663,395 663,395 0% 1,072,984 62%
(1)The entry-age cost actuarial method is used by the University.
Notes to Required Supplementary Information:
Scbedule of Funding Progress - Otlher Postm owineIt Benerft Plan The July 1, 2013, unfunded actuarial liability of $663.4 million was higher than the July 1,2011, liability of $6433 million due to several factors. While there were fewer retirees and the healthcare trend rates are lower, the rising age of retirees and the impact of the potential excise tax from the Affordable Care Act increased the implicit rate subsidy and offset the decreasing factors.
Supplemental Information 2013-2014 Annual Financial Report
~q#~<~ ~.
- 06-Number of Aid Recipients Disbursed Federal Programs Pell Grants 12,133 $ 47,492,404 Supplemental Educational Opportunity Grants 2,188 2,088,801 Noyce-Scholarship Loans 5 50,000 TEACH Grant 10 35,431 Perkins Student Loans 1,599 4,773,863 Health Professions Student Loans (PCL, LDS, HPSL) 87 716,603 Direct Loans 19,870 249,035,362 TOTAL FEDERAL FINANCIAL AID ADMINISTERED 35,892 $ 304,192,464 State Programs Loans:
University of Florida Short-Term Loans .519 $ 647,503 Student Aid For Education (SAFE) Loans 94 222,545 University of Florida Long-Term Loans 164 648,779 Total Loans Administered 777 1,518,827 Scholarships and Grants:
State of Rorida Financial Aid Program 28,915 .66,039,123 Lottery Trust Grant Funded Waivers 403 1,548,751 Total State Scholarships and Grants Administered 29,318 " 67,587,874 TOTAL STATE FINANCIAL AID ADMINISTERED 30,095 $ 69,106,701 Other Scholarships and Grants Institutional Grants:
College Awarded Scholarships 11,639 $ 38,894,000 Graduate Tuition Remission Waivers 2,775 20,119,607 General Scholarships 7,924 20,026,210 Total Institutional Scholarships and Grants 22,338 79,039,817 Custodial Scholarships:
Tuition, Trusts, Clubs, Service Organizations, etc. 4,386 9,805,459 TOTAL OTHER SCHOLARSHIPS AND GRANTS 26,724 $ 88,845276 Fee Waivers Non-Resident Tuition Waivers 453 $ 5,560,207 Other Waivers 5,303 34,411,802 TOTAL FEE WAIVERS ADMINISTERED 5,756 $ 39,972,009 TOTAL FINANCIAL AID ADMINISTERED $ 502,116,450 A Component Unit of the State of Florida I 51
AUDITOR GENERAL STATE OF FLORIDA DAVID W. MARTIN, CPA G74 Claude Pepper Building PHONE: 850-412-2722 AUDITOR GENERAL Peppe rStreet 111 West Madison FAX: 850-488-6975 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 GOVERNMENTAUDITING 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 Governiment 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, 2014, 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 16, 2014, 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. This 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 deicien',in internal cont/,v 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 mateiialweakness 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 significant de/icienq, 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.
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.
52 1 University of Florida
2013-2014 Annual Financial Report 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 Goverument Auditing Standards.
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 GOVERNMENT AUDITING 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 Auditing 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 16, 2014 Audit Report No. 2015-074 A Component Unit of the State of Florida 1 53
Executive Officers Principal Finance and Accounting Officials Dr. J. Bernard Machen President Xim C 5imnso, Interim Assistant Vice President and University Controller Jane Adams Vice President for University Relations Brad S. Stacts Assistant Vice President for Contracts and Grants Accounting Services Elias G. Eldayrie Vice President and Chief Information Officer Pauia Varnes Fussed Senior Associate Controller for University Disbursement Services, Vice President for Human Resource Services Asset Management, and Cost Analysis Dr.Joseph Glover Kathleen M. Tiliett Provost and Senior Vice President for Academic Affairs Senior Associate Controller for General Accounting, Financial Reporting, Payroll and Tax Services Drn -avid S. Guzick Senior Vice President for Health Affairs Alan M. West Senior Associate Controller for University Bursar and Treasury Management Jamie Lewis Ke&th Vice President and General Counsel David E. Kratzer Vice President for Student Affairs In loving memory of Dr. Charfes E, Lane Senior Vice President and Chief Operating Officer Sheela Moudgil, CPA
- ." Associate.Controller Michael V, McKee Interim Vice President and Chief Financial Officer GeherdlI'Accountifig
..and Financial Reporting Thomas .J, Mitchell Vice President for Development and Alumni Affairs Finance and Accounting A Dedicated and Valued Colleague, Dr. David D_ Norton , Alurnnu'l and Friend Vice President for Research Dr. Jack M. Payne Senior Vice President for Agriculture and Natural Resources Curtis A. Reynolds Vice President for Business Affairs 54 1 University of Florida
University of Florida Board of Trustees Dr. Stevo M, FIcON David L, Brando Chnraophor 7 Cot Chair Palm Horbar, aL t wmndcrnŽr L UttwLrrd ,ake Lure, NC Bo)ca Paton, FL ChIrles B Brwoths James W. Heasertce Or Prosierp motor PoOerl Dr. Jason J. Pasenberrp UV$'tNC 5 ' of UIorid~ na. Alochoa. a Porolhi tO tow rho Juliet M. pou*hac David °"Themea CcnP-rsity tf I' Plan tation, FL Windermnorr, FL DESIGN:
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