FINANCIAL REPORT UNIVERSITY OF NORTH TEXAS DENTON, TEXAS. Gretchen M. Bataille, President

Transcription

1 FINANCIAL REPORT of the UNIVERSITY OF NORTH TEXAS DENTON, TEXAS Gretchen M. Bataille, President For the year ended August 31, 2008

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3 TABLE OF CONTENTS Letter of Transmittal... 1 Organizational Data... 3 Statements Statement of Net Assets Statement of Revenues, Expenses and Changes in Net Assets Statement of Cash Flows Schedules 1A Notes to Schedule of Expenditures of Federal Awards B Schedule of State Grant Pass Throughs From/To State Agencies A Miscellaneous Bond Information B Changes in Bonded Indebtedness C Debt Service Requirements D Analysis of Funds Available for Debt Service E Defeased Bonds Outstanding F Early Extinguishment and Refunding Reconciliation of Cash in State Treasury... 21

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7 UNIVERSITY OF NORTH TEXAS ORGANIZATIONAL DATA August 31, 2008 BOARD OF REGENTS Gwyn Shea... (Term expires )... Irving Jack A. Wall... (Term expires )... Dallas Don A. Buchholz... (Term expires )... Dallas Rice Tilley... (Term expires )...Fort Worth Gayle Strange... (Term expires )... Denton Robert A. Nickell... (Term expires )... Dallas Charles Mitchell... (Term expires )...Mesquite C. Dan Smith... (Term expires )... Plano Al Silva... (Term expires )... San Antonio OFFICERS OF THE BOARD Gayle Strange... Chairman C. Dan Smith... Vice Chairman Jana Dean... Secretary ADMINISTRATIVE OFFICERS Lee Jackson... Chancellor Gretchen M. Bataille...President Andrew M. Harris...Vice President for Finance & Administration Virginia E. Anderson... Associate VP of Finance & Administration & Controller

8 Statement of Net Assets For the Year Ended August 31, 2008 ASSETS Current Assets Cash and Cash Equivalents August 31, August 31, Cash on Hand $ 109, $ 123, Cash in Bank (14,895,592.91) (11,100,998.14) Reimbursement Due from Treasury 12,785, ,441, Cash in State Treasury 15,751, ,828, Cash Equivalents 163,036, ,332, Short Term Investments - 400, Restricted: Cash and Cash Equivalents Cash on Hand 6, , Cash in Bank (1,755,949.24) (468,746.91) Cash in State Treasury - - Cash Equivalents 19,219, ,701, Short Term Investments 100, Legislative Appropriations 49,247, ,678, Receivables from: Federal 13,119, ,608, Other Intergovernmental 293, , Interest and Dividends 1,752, ,934, Accounts Receivable 28,222, ,398, Gifts Receivable 700, , Other Receivables - - Due From Other Agencies 184, , Due From Other Components 8,090, ,690, Consumable Inventories 1,470, ,705, Merchandise Inventories 267, , Loans and Contracts 7,933, ,998, Other Current Assets 16,141, ,545, Total Current Assets 321,782, ,868, Non-Current Assets Restricted: Cash and Cash Equivalents Cash in Bank - - Cash in State Treasury - - Cash Equivalents - - Investments 35,452, ,019, Loans and Contracts 1,699, ,799, Investments 101,206, ,124, Gift Receivables 902, ,151, Capital Assets: Non-Depreciable Land and Land Improvements 31,873, ,788, Construction in Progress 9,685, ,301, Other Capital Assets 23,153, ,078, Depreciable Buildings and Building Improvements 439,158, ,592, Less Accumulated Depreciation (210,380,594.84) (206,970,798.73) Infrastructure 8,822, ,822, Less Accumulated Depreciation (7,831,929.92) (7,779,244.64)

9 August 31, August 31, Facilities and Other Improvement 15,585, ,088, Less Accumulated Depreciation (7,684,838.42) (7,233,183.59) Furniture and Equipment 77,657, ,668, Less Accumulated Depreciation (50,495,596.36) (48,053,105.15) Vehicles, Boats and Aircraft 6,641, ,429, Less Accumulated Depreciation (4,439,287.34) (4,055,165.82) Other Capital Assets 69,313, ,783, Less Accumulated Depreciation (36,065,947.99) (33,060,053.73) Other Non-Current Assets 331, , Total Non-Current Assets 504,584, ,770, Total Assets $ 826,366, $ 771,638, LIABILITIES Current Liabilities Payables From: Accounts Payable $ 11,232, $ 12,220, Payroll Payable 21,527, ,501, Other Payables 373, ,290, Due to Other Funds - - Due to Other Agencies 3, , Due to Other Components - 397, Deferred Revenues 112,180, ,353, Notes and Loans Payable - - Revenue Bonds Payable 7,435, ,395, Employees Compensable Leave 1,140, , Capital Lease Obligations - - Liabilities Paid from Restricted Assets - - Funds Held for Others 2,641, ,817, Other Current Liabilities 3,352, ,461, Total Current Liabilities 159,887, ,028, Non-Current Liabilities Notes and Loans Payable - - Contra Liability-Due From Other Components-CP 5,996, ,233, Revenue Bonds Payable 174,620, ,055, Employee's Compensable Leave 7,568, ,039, Capital Lease Obligations - - Funds Held for Others 473, ,260, Other Non-Current Liabilities 2,153, Total Non-Current Liabilities 190,810, ,587, Total Liabilities 350,698, ,616, NET ASSETS Invested in Capital Assets, Net of Related Debt 176,968, ,719, Restricted for: Debt Retirement 406, ,574, Capital Projects 22,104, ,384, Employee Benefits - - Funds Held as Permanent Investments Non-Expendable 15,437, ,235, Expendable 4,525, ,031, Other Restricted 40,985, ,164, Unrestricted 215,240, ,911, Total Net Assets 475,668, ,021, Total Liabilities and Net Assets $ 826,366, $ 771,638,510.07

10 Statement of Revenues, Expenses and Changes in Net Assets For the Fiscal Year Ended August 31, 2008 August 31, August 31, OPERATING REVENUES Sales of Goods and Services: Tuition and Fees - Non-Pledged $ 73,899, $ 67,237, Tuition and Fees - Pledged 142,086, ,786, Discounts and Allowances (27,316,960.86) (25,285,393.13) Professional Fees - Non-Pledged - - Professional Fees - Pledged - - Discounts and Allowances - - Auxiliary Enterprises - Non-Pledged 1,161, ,220, Auxiliary Enterprises - Pledged 39,046, ,929, Discounts and Allowances (116,338.85) (103,620.06) Other Sales of Goods and Services - Non-Pledged 19,979, ,231, Other Sales of Goods and Services - Pledged - - Discounts and Allowances - - Federal Revenue - Operating 38,490, ,384, Federal Pass Through Revenue 2,194, ,383, State Grant Revenue 2,760, ,143, State Grant Pass Through Revenue 10,275, ,359, Other Grants and Contracts - Operating 4,595, ,514, Other Operating Revenues 133, , Total Operating Revenues 307,191, ,916, OPERATING EXPENSES (1) Instruction 148,218, ,225, Research 12,906, ,720, Public Service 5,962, ,270, Academic Support 45,734, ,971, Student Services 46,619, ,885, Institutional Support 31,159, ,253, Operations and Maintenance of Plant 26,507, ,217, Scholarships and Fellowships 38,225, ,664, Auxiliary Enterprises 35,147, ,023, Depreciation 21,126, ,031, Total Operating Expenses 411,608, ,264, Operating Income/(Loss) (104,416,822.34) (82,347,522.26)

11 August 31, August 31, NONOPERATING REVENUES (EXPENSES) Legislative Appropriations (GR) 105,760, ,399, Additional Appropriations (GR) 24,688, ,585, State Grant Pass Through Revenue - - Gifts 7,586, ,280, Investment Income 11,656, ,036, Loan Premium/Fees on Securities Lending - - Investing Activities Expense - - Interest Expense and Fiscal Charges (8,967,009.60) (8,950,070.41) Borrower Rebates and Agent Fees - - Gain/(Loss) on Sale of Capital Assets 18, , Net Increase (Decrease) in Fair Value of Investments 165, ,622, Settlement of Claims (503,637.18) (361,211.55) Other Nonoperating Revenues - Non-Pledged 30, ,118, Other Nonoperating Revenues - Pledged - - Other Nonoperating Expenses (216,414.16) (15,844.26) Total Nonoperating Revenues /(Expenses) 140,218, ,938, Income/(Loss) before Other Revenues, Expenses, Gains, Losses and Transfers 35,801, ,590, OTHER REVENUES, EXPENSES, GAINS LOSSES AND TRANSFERS Capital Contributions 3,326, Capital Appropriations - HEAF (GR) 26,137, ,424, Contributions to Permanent and Term Endowments 176, , Special Items - - Extraordinary Items - - Interagency Transfers Cap Assets-Increase 687, , Interagency Transfers Cap Assets-Decrease - (5,588,380.01) Transfers-In - - Transfers-Out (7,792,256.67) (6,380,627.18) Legislative Transfers-In - - Legislative Transfers-Out (2,689,734.92) (2,216,852.13) Legislative Appropriation Lapses - - Total Other Revenue, Expenses, Gain/Losses and Transfers 19,845, ,934, CHANGE IN NET ASSETS 55,646, ,524, Net Assets, Beginning 420,021, ,828, Restatements - (1,331,586.79) Net Assets, Beginning, as Restated 420,021, ,496, NET ASSETS, ENDING $ 475,668, $ 420,021, (1) See Note 1: Matrix of Operating Expenses Reported by Function on Page 8.

12 Note 1: Matrix of Operating Expenses Reported by Function For the Fiscal Year Ended August 31, 2008 Public Academic Student Operating Expenses Instruction Research Service Support Services Cost of Goods Sold $ 2, $ 2, $ - $ 293, $ 125, Salaries and Wages 107,466, ,402, ,201, ,667, ,171, Payroll Related Costs 25,113, ,352, , ,716, ,029, Professional Fees & Svcs 892, , , ,092, , Federal Pass-Thru Expense - 145, , State Grant Pass-Thru Exp Travel 1,180, , , ,833, ,098, Material and Supplies 7,188, ,960, , ,758, ,196, Communication & Utilities 668, , , , ,142, Repairs and Maintenance 952, , , , , Rentals and Leases 737, , , , , Printing and Reproduction 1,002, (180.81) 167, , , Depreciation Bad Debt Expense 27, (1,778.03) Interest Scholarships 900, , , , Claims and Losses Other Operating Expenses 2,084, , , ,191, ,999, Total Operating Expenses $ 148,218, $ 12,906, $ 5,962, $ 45,734, $ 46,619,872.08

13 Operation and 2008 Institutional Maintenance of Scholarships Auxiliary Total Support Plant and Fellowships Enterprises Depreciation Expenditures $ 769, $ 360, $ - $ 40, $ - $ 1,595, ,430, ,267, , ,723, ,858, ,632, ,096, , ,131, ,759, , (1,482.18) 43, , ,697, , , , , , ,358, , ,956, , ,765, ,778, (739,751.65) 7,564, ,706, ,739, ,141, ,806, , ,090, ,192, , , ,146, ,187, , , , , ,537, ,126, ,126, , , , (63.67) (63.67) ,728, ,995, ,455, ,233, , , ,727, $ 31,159, $ 26,507, $ 38,225, $ 35,147, $ 21,126, $ 411,608,350.45

14 Statement of Cash Flows For the Fiscal Year Ended August 31, 2008 August 31, August 31, CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from Tuition and Fees $ 186,811, $ 175,189, Proceeds Received from Customers 23,175, ,647, Proceeds from Sponsored Projects 57,515, ,996, Proceeds from Loan Programs 7,875, ,868, Proceeds from Auxiliaries 41,325, ,234, Proceeds from Other Revenues 58, , Payments to Suppliers for Goods and Services (100,103,152.12) (80,301,408.03) Payments to Employees for Salaries and Benefits (255,638,076.88) (235,072,567.19) Payments for Loans Provided (8,710,880.77) (7,363,681.48) Payments for Other Expenses (37,338,439.73) (29,540,607.05) Net Cash Provided (Used) by Operating Activities (85,027,735.87) (62,274,606.92) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Proceeds from State Appropriations 123,750, ,450, Proceeds from Debt Issuance - - Proceeds from Legislative Transfers - - Proceeds from Gifts 7,362, ,084, Proceeds from Endowments 176, , Proceeds of Transfers from Other Agencies - - Proceeds of Transfers from Other Components - - Proceeds from Other Revenues 30, ,147, Proceeds from Contributed Capital - - Payments of Principal on Debt Issuance - - Payments of Interest (42,564.27) (155,277.99) Payments of Other Costs of Debt Issuance - - Payments for Transfers to Other Agencies (2,155,115.04) (2,638,651.84) Payments for Transfers to Other Components (11,124,400.66) (7,064,373.76) Payments for Other Uses (2,570,433.96) (363,353.97) Net Cash Provided (Used) by Noncapital Financing Activities 115,427, ,599, CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from State Appropriations - HEAF 12,266, ,949, Proceeds from Disposal of Capital Assets - - Proceeds from Debt Issuance 47, ,821, Proceeds from Capital Contributions - - Proceeds of Transfers from Other Components - Commercial Paper 8,829, ,500, Payments for Additions to Fixed Assets (30,461,089.22) (31,775,492.52) Payments of Principal on Debt Issuance (7,395,000.00) (6,635,000.00) Payments of Interest on Debt Issuance (9,030,401.26) (7,802,037.37) Payments of Other Costs of Debt Issuance (3,100.00) (123,446.09) Payments for Transfers to Other Components - Commercial Paper (5,066,000.00) (9,821,000.00) Payments for Transfers to Other Components - - Payments for Disposal of Capital Assets - - Net Cash Provided (Used) From Capital & Related Financing Activites (30,812,832.38) 2,113,968.53

15 August 31, August 31, CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Investments 48,451, ,753, Proceeds from Interest and Investment Income 11,838, ,876, Proceeds from Principal Payments on Loans - - Payments to Acquire Investments (17,488,114.83) (223,510,292.52) Net Cash Provided (Used) by Investing Activities 42,801, (27,880,677.23) Net Increase/(Decrease) in Cash and Cash Equivalents 42,388, ,558, Cash and Cash Equivalents --September 1, 2007 and ,868, ,641, Restatements to Beginning Cash and Cash Equivalents - (1,331,586.79) Cash and Cash Equivalents --August 31, 2008 and 2007 $ 194,256, $ 151,868, Displayed as: Unrestricted Cash and Cash Equivalents (Statement of Net Assets) $ 176,786, $ 147,624, Short-term Investments (Statement of Net Assets) - - Restricted Cash and Cash Equivalents (Statement of Net Assets) 17,470, ,243, Restricted Short-term Investments (Statement of Net Assets) - - $ 194,256, $ 151,868, Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income/(Loss) $ (104,416,822.34) $ (82,347,522.26) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 21,126, ,031, Bad Debt Expense 818, , Operating Income and Cash Flow Categories Classification Differences Changes in Assets and Liabilities: (Increase) Decrease in Receivables (4,688,960.06) (2,733,301.48) (Increase) Decrease in Inventories 521, , (Increase) Decrease in Loans & Contracts (834,958.68) (494,852.28) (Increase) Decrease in Other Assets - - (Increase) Decrease in Prepaid Expenses (2,596,590.76) (538,107.74) Increase (Decrease) in Payables (1,784,087.20) 463, Increase (Decrease) in Due to Other Components - - Increase (Decrease) in Deferred Income 6,827, ,326, Increase (Decrease) in Other Liablities - - Total Adjustments 19,389, ,072, Net Cash Provided by Operating Activities $ (85,027,735.87) $ (62,274,606.92) Non Cash Transactions Net Increase (Decrease) in FMV of Investments $ 165, $ 3,622, Amortization of Investment Premiums/(Discounts) $ (99,250.95) $ (407,191.80) Donation of non-cash investment $ - $ 593, The accompanying Notes to the Combined Financial Statements are an integral part of the financial statements.

16 Notes to Schedule 1A - Schedule of Expenditures of Federal Awards For the Fiscal Year Ended August 31, 2008 Note 1: Nonmonetary Assistance N/A Note 2: Reconciliation Below is a reconciliation of the total of federal pass-through and federal expenditures as reported on the Schedule of Federal Financial Assistance to the total of Federal revenues and federal grant pass-through revenues as reported in the general-purpose financial statements. Generally, federal funds are not earned until expended; therefore, federal revenues equal federal expenditures for the reporting period. Federal Revenues - per Statement of Changes in Revenues, Expenses and Net Assets Federal Grants and Contracts $ 38,490, Federal Pass-Through Grants from Other State Agencies/Universities 2,194, Subtotal $ 40,685, Reconciling Items: New Loans Processed: Federal Perkins Loan Program $ 121, Federal Family Education Loans 134,165, Total Pass - Through & Expenditures per Federal Schedule $ 174,971, Note 3a: Student Loans Processed and Administrative Costs Recovered Total Loans Processed & Ending Balances Federal Grantor/ New Loans Admin. Costs Admin Costs of Previous CFDA Number/Program Name Processed Recovered Recovered Year's Loans U.S. Department of Education Federal Family Education Loans $ 134,165, $ - $ 134,165, $ Federal Perkins Loan Program 121, , ,588, Total U.S. Department of Education 134,286, ,286, ,588, TOTAL LOANS AND RECOVERIES $ 134,286, $ - $ 134,286, $ 1,588, The University of North Texas' general ledger reporting, billing and receiving, and some aspects of collections of the Perkins Loan program are outsourced to Campus Partners. Promissory note generation, final collections efforts, forbearance and deferment decisions are performed by UNT Financial Aid. Note 3b: Federally Funded Loans Processed and Administrative Cost Recovered N/A Note 4: Depository Libraries for Government Publications The University of North Texas participates as a depository library in the Government Printing Office's Depository Libraries for Government Publications Program, CFDA # The university is the legal custodian of government publications, which remain the property of the federal government. The publications are not assigned a value by the Government Printing Office. Note 5: Unemployment Insurance Funds N/A (Agency 320 only) Note 6: Rebates from the Special Supplemental Food Program for Women, Infant and Children (WIC) N/A (Agency 537 only) Note 7: Deferred Federal Revenue The University of North Texas does not report any Federal Deferred Revenue

17 Schedule 1B - Schedule of State Grant Pass-Throughs From/To State Agencies For the Fiscal Year Ended August 31, 2008 Pass-Through From: State Agencies To University of North Texas (752) Texas Comptroller of Public Accounts (Agency 304) Fiscal Effectiveness of the Film Incentive Program in the State $ 2, Texas Dept. of State Health Services (Agency 537) Texas Teratogen Information Service 70, Texas Water Board (Agency 580) Survey of Distribution and Habitat Requirements of Freshwater Mussels on the Sabine and Brazos Rivers 10, Texas Education Agency (Agency 701) Texas Academy of Math and Science 1,708, Texas High School INIT Pilot Principle 47, University of Texas - Arlington (Agency 714) Implantable Wireless Oxygen/Pressure Sensor 12, Texas Higher Education Coordinating Board (Agency 781) Texas Grant Program 7,886, Advanced Research Program 379, Texas College Work Study Program 144, th Year Accounting Scholarship 13, Total Pass-Through From Other Agencies $ 10,275, (Statement of Revenues, Expenses, and Changes in Net Assets) Pass-Through To: N/A

18 Schedule 2A - Miscellaneous Bond Information For the Fiscal Year Ended August 31, 2008 Terms of Scheduled Bonds Variable Maturities First Issued Range of Interest First Last Call Description of Issue to Date Interest Rates Rates Year Year Date Consolidated University Revenue Bonds, Series 1994 $ 10,000, % % N/A /15/04 RFS Bonds, Series ,040, % % N/A /15/09 RFS Bonds, Series ,860, % % N/A /15/12 RFS Bonds, Series ,340, % % N/A /15/12 RFS Bonds, Series 2002A 9,500, % % N/A /15/12 RFS Bonds, Series ,180, % % N/A /15/13 RFS Refunding Bonds, Series 2003A 3,270, % % N/A /15/13 RFS Bonds, Taxable Series 2003B 4,980, % % N/A /15/13 RFS Refunding and Improvement Bonds, Series ,890, % % N/A /15/15 RFS Bonds, Series ,070, % % N/A /15/16 Total $ 234,130, *RFS - Revenue Financing System

19 Schedule 2B - Changes in Bonded Indebtedness For the Fiscal Year Ended August 31, 2008 Bonds Bonds Bonds Bonds Amounts Outstanding Bonds Matured Refunded or Outstanding Due Within Description of Issue 9/1/2007 Issued or Retired Extinguished 8/31/2008 One Year Consolidated University Revenue Bonds, Series 1994 $ 2,295, $ - $ - $ - $ 2,295, $ - RFS Bonds, Series ,010, , ,030, ,030, RFS Bonds, Series ,420, , ,500, ,030, RFS Bonds, Series ,290, ,445, ,845, ,490, RFS Bonds, Series 2002A 8,265, , ,865, , RFS Bonds, Series ,420, , ,800, , RFS Refunding Bonds, Series 2003A 3,270, ,270, RFS Bonds, Taxable Series 2003B 4,880, , ,845, , RFS Refunding and Improvement Bonds, Series ,530, ,010, ,520, ,085, RFS Bonds, Series ,070, , ,085, , Total $ 189,450, $ - $ 7,395, $ - $ 182,055, $ 7,435, * Footnotes: * Bond premiums, discounts and issuance costs were not individually greater that 5% of the par value of the bond issue; therefore, they are not capitalized and amortized over the life of the bonds. They were expensed at the time of the bond issue. Bonds Payable per Statement of Net Assets $ 182,055,000.00

20 Schedule 2C - Debt Service Requirements For the Fiscal Year Ended August 31, 2008 Description of Issue Year Principal Interest Revenue Bonds Consolidated University Revenue Bonds, Series $ - $ 91, , , , , , , , , ,295, , RFS Bonds, Series ,030, , ,030, , RFS Bonds, Series ,030, ,589, ,155, ,538, ,280, ,480, ,420, ,416, ,565, ,345, ,255, ,334, ,015, ,567, ,780, , ,500, ,412, RFS Bonds, Series ,490, ,287, ,545, ,235, ,605, ,179, ,665, ,117, ,730, ,050, ,935, ,963, ,875, ,252, ,845, ,087, RFS Bonds, Series 2002A , , , , , , , , , , ,815, ,094, ,775, , ,865, ,059, RFS Bonds, Series , ,317, , ,298, , ,275, , ,251, , ,226, ,100, ,688, ,030, ,757, ,320, ,462, ,070, ,716, ,865, , ,800, ,086,806.28

21 Description of Issue Year Principal Interest Revenue Bonds RFS Refunding Bonds, Series 2003A , , , , , ,270, , ,270, ,449, RFS Bonds, Taxable Series 2003B , , , , , , , , , , , ,306, , ,099, ,135, , ,535, , , , ,845, ,072, RFS Refunding and Improvement Bonds, Series ,085, ,813, ,240, ,740, ,390, ,594, ,870, ,416, ,020, ,272, ,445, ,239, ,950, ,470, ,520, , ,520, ,718, RFS Bonds, Series , ,765, , ,736, , ,707, , ,676, , ,644, ,695, ,673, ,835, ,539, ,430, ,947, ,465, ,905, ,810, , ,085, ,218, Less Accretion: - - Total: $ 182,055, $ 103,621, * * In accordance with the State Comptroller's reporting requirements, the interest amounts on this schedule represent interest per the bonds amortization schedules rather than interst on a full accrual basis.

22 Schedule 2D - Analysis of Funds Available for Debt Service For the Fiscal Year Ended August 31, 2008 Pledged and other Sources and Related Expenditures for FY 2008 Total Operating Pledged Expenses/ and Other Expenditures & Debt Service Description of Issue** Sources Capital Outlay Principal Interest* Consolidated University Revenue Bonds, Series 1994 $ 136,134, $ 29,882, $ - $ 91, Revenue Financing System Bonds, Series '99, '01, 02, '02A, '03, '03A, '03B, '05 & '07 255,908, , ,395, ,938, Total $ 392,042, $ 29,885, $ 7,395, $ 9,030, * In accordance with the State Comptroller's reporting requirements, the interest amounts on this schedule represent interest per the bonds amortization schedules rather than interest on a full accrual basis. ** UNT Cons Univ Rev Bonds, Ser'94 (Curr '94) were issued prior to the creation of the Revenue Financing System (RFS) and are classified as Prior Encumbered Obligations under the current RFS Master Resolution. Pledged revenues for the Curr '94 bonds consist of those fees in effect at the time the bonds were issued. Pledged revenues for the RFS Parity Obligations include all revenues, funds and balances lawfully available and derived from or attributable to any participant of the Revenue Financing System, subject to the lien on the pledged revenues securing Prior Encumbered Obligations.

23 Schedule 2E - Defeased Bonds Outstanding For the Fiscal Year Ended August 31, 2008 Year Par Value Description of Issue Refunded Outstanding RFS Bonds, Series $ 13,825, $ 13,825,000.00

24 Schedule 2F - Early Extinguishment and Refunding For the Fiscal Year Ended August 31, 2008 For Refunding Only Amount Refunding Cash Flow Economic Extinguished Issue Increase Gain/ Description of Issue Category or Refunded Par Value (Decrease) Loss $ - $ - $ - $ - Total $ - $ - $ - $ -

25 Schedule 3 - Reconciliation of Cash in State Treasury For the Fiscal Year Ended August 31, 2008 Current Cash in State Treasury Unrestricted Restricted Year Total Local Revenue Fund 0258 $ 15,751, $ - $ 15,751, Total Cash in State Treasury (Statement of Net Assets) $ 15,751, $ - $ 15,751,455.33