Florida Institute of Technology

Transcription

1 Florida Institute of Technology Office for Financial Affairs Novernber29,2017 Mr. Victor R. Clements The University Financing Foundation, Inc Busbee Drive, Suite 150 Kennesaw, GA I certify that the Consolidated Financial Statements for Florida Institute oftechnology, Inc. have been prepared in accordance with GAAP and accurately reflect the financial condition of Florida Institute of Technology, Inc. for the six months ended October 31, 2017 and To the best of my knowledge, Florida Institute oftechnology, Inc. has performed and observed each and every agreement, covenant and obligation contained in the Reimbursement Agreement and that no Event of Default or an event which, with notice or lapse of time or both, would constitute an Event of Default, has occurred and is continuing. In addition, I certify that Florida Institute of Technology, Inc. has complied in all material respects with the requirements set forth in subsections (a)(i), (a)( ii) and (a)(iii) of the agreement. A report of covenant compliance, including computation, is calculated as of October 31, 2017 and is attached for review. Cathy R. Wood Senior Vice President Financial Affairs/CFO High Tech with a Human Touch 150 West University Boulevard, Melbourne, FL (321) Fax: (321)

2 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS Cash and cash equivalents Accounts receivable, net Pledges receivable, net Prepaid expenses, inventmies and other assets, net Student loans receivable net Investments Long-lived assets, net TOTAL A SET $ $ J0/3 1/ /31/ ,756 $ , ,864,198 19, ,502,006 2,910,747 4, 09,299 5, , ,791 80,201, ,81 125, ,506, , 156,348 $ ,066 i..iabillties AND NET ASSETS LIABILITIES Account payable and accrued expenses Deposits and dcfe1ted revenue Annuities payable Refundable government loans Capital lease obligation Long-tem1 debt Total Liabilities $ 25,697,95 I 24,399,227 8, 156,376 6,654,907 2,054,318 I 998,248 4,676,3 13 4,588, ,937 30,667, , ,772 86,4 13,J 56 NET ASSETS Unreslricted Temporarily re tricted Permanently re lricted Total Net Assets TOTAL LJABILITIES AND NET AS ETS 94,046, ,045 24, ,573,092 52,265, , ,075, ,478, , $ 243,892,066

3 CONSOLIDATED STATEMENT OF ACTIVlTIES FOR THE SIX MONTHS ENDING OCTOBER 31, 2017 Temporarily Permanently Unrestricted Restricted Restricted Total OPERA TING ACTIVITIES Revenues and reclassifications: Tuition and fees $ I 08, 785,338 $ $ $ 108,785,338 Student aid-tuition and fees (30,097,484) (30,097,484) Net tuition and fees 78,687,854 78,687,854 Gifts 1,141,760 l,141,760 Interest and dividends 16,677 16,677 Other operating 2,669,255 2,669,255 Federal/State grants & contracts 5,087,909 5,087,909 Private grants & contracts 735, ,986 Indirect cost recovery 1,311,414 1,311,414 Subtotal sponsored programs 7,135,309 7,135,309 Institutes and project research 510, ,985 Auxiliary enterprises 13,811,447 13,811,447 Net assets released from restrictions 467,417 (467,417) Total operating revenues and reclassifications 104,440,704 (467,417) 103,973,287 Expenses: Instruction and departmental and public service 31,008,148 31,008,148 Academic support 9,051,611 9,051,611 Institutional support 15,094,912 15,094,912 Student services 9,638,556 9,638,556 Federal/State grants & contracts 5,868,241 5,868,241 Private grants & contracts 597, ,515 Subtotal sponsored programs 6,465,756 6,465,756 Institutes and project research 351, ,100 Auxiliary enterprises 15, ,978,808 Total operating expenses 87,588,891 87,588,891 Operating income/(loss) 16,851,813 (467,417) 16,384,396 NON-OPERATING ACTIVITIES Gifts 22, , ,929 Interest and dividends - endowment and other 70, , ,833 Net realized and unrealized gain/(loss) on investments 419,565 4,586,599 5,006,164 Insurance recovery 2,382 2,382 Gain/(loss) on disposition of assets 30,711 (113,338) (82,627) Transfer 35,386 (35,386) Non-operating income/(loss) 558, 160 5,343,077 25,444 5,926,681 CHANGE IN NET ASSETS 17,409,973 4,875,660 25,444 22,311,077 NET ASSETS - Beginning of year, as restated 76,636,870 19,887, , ,764,499 NET ASSETS - End of period $ 94,046,843 $ 24,763,116 $ 52,265,617 $ ,576

4 CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE SIX MONTHS ENDING OCTOBER 31, 2016 Temporarily Permanently Unrestricted Restricted Restricted Total OPERA TING ACTIVITIES Revenues and reclassifications: Tuition and fees $110,102,513 $ $ $ 110,102,513 Student aid-tuition and fees p0,373,770) (30,373,770) Net tuition and fees 79,728,743 79,728,743 Gifts 707, ,115 Interest and dividends 4,542 4,542 Other operating 2,637,430 2,637,430 Federal/State grants & contracts 5,095,841 5,095,841 Private grants & contracts 908, ,762 Indirect cost recovery 1,431,600 1,431,600 Subtota 1 sponsored programs 7,436,203 7,436,203 Institutes and project research 337, ,091 Auxiliary enterprises 14,091,300 14,091,300 Net assets released from restrictions 516,161 ( ) Total operating revenues and reclassifications I 05,458,585 (516,161) 104,942,424 Expenses: Instruction and departmental and public service 32,944,661 32,944,661 Academic support 9,175,167 9,175,167 Institutional support 15,732,581 15,732,581 Student services 9,128,728 9,128,728 Federal/State grants & contracts 6,009,135 6,009,135 Private grants & contracts 908, ,768 Subtotal sponsored programs 6,917,903 6,917,903 Institutes and project research 320, ,199 Auxiliary enterprises 16,525,836 16,525,836 Total operating expenses ,075 90,745,075 Operating incomc/(loss) 14,713,510 (516, 161) 14,197,349 NON-OPERATING ACTIVITIES Gifts 7, , ,701 Interest and dividends - endowment and other 21, , ,428 Net realized and unrealized gain/(loss) on investments 88,237 1,889,972 1,978,209 Insurance recovery 22,834 22,834 Gain/(loss) on disposition of assets (49,416) (49,416) Transfer 87,620 (87,620) Non-operating income/(loss) 170,820 2,286, ,661 2,578,756 CHANGE IN NET ASSETS 14,884,330 1,770, ,661 16,776,105 NET ASSETS - Beginning of year 74,393,715 14,802,978 51,506, , 702,805 NET ASSETS - End of period $ 89, $ 16,573,092 $ 51,627,773 $ 157,478,910

5 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDING 10/31/ /31/2016 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 22,311,077 $ 16,776, 105 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 3,737,162 5,080,240 Accrued interest on capital leases (38,725) Amortization of bond issuance costs 2,749 2,749 Net realized and unrealized (gain)/loss on investments (5,006,164) (I, 978,209) Change in bad debt allowance for accounts receivable 436, ,902 ( Gain)/loss on disposition of assets 82,627 49,416 Change in actuarial liability for annuities payable, net 91,216 38,239 Change in assets and liabilities: Accounts receivable ( 16,487,63 7) (13,084,237) Pledges receivable 50,227 (6,040) Prepaid expenses, inventories and other assets 2,014,274 1,120,075 Student loans receivable (266,891) (58,555) Accounts payable and accrued expenses 3,830,986 1,887,855 Deposits and deferred revenue (1,917,416) (1,651,090) Refundable government loans (27,452) Net cash provided by operating activities 8,918,297 8,653,273 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (1,268, 752) (554,832) Proceeds from investments 232, ,265 Proceeds from disposition of assets 286,173 1,755,000 Purchase of long-lived assets (2,099,041) ~750,228) Net cash used in investing activities (2,849,262) 669,205 CASH FLOWS FROM FINANCING ACTIVITIES: Payment of annuity obligations (54,597) (52,372) Repayment of long term debt (746, l 84) (600,212) Repayment of capital lease obligations \357,669) (346,179) Net cash (used)/provided by financing activities (1,158,450) (998,763) NET INCREASE (DECREASE) IN CASH, CASH EQU1V A LENTS, AND CASH HELD WITH FIDUCIARY 4,910,585 8,323,715 CASH, CASH EQUIVALENTS AND CASH HELD WITH FIDUCIARY Beginning of period , 171 5,867,676 CASH, CASH EQUIVALENTS AND CASH HELD WITH FIDUCIARY End of period $ 19,710,756 $ AS PRESENTED ON STATEMENTS OF FINANCIAL POSITION Cash and cash equivalents $ 19,71 0,756 $ 14,191,391 $ 19, $ 14,191,391 SUPPLEMENTAL CASH FLOW INFORMATION -Interest Paid $ 638,341 $ 703,639

6 Florida Institute of Technology, Inc. Debt Covenant Ratio The ratio of (x): Revenue 1 Unrestricted revenue 2 Interest Rate Swap 3 Net assets released from restriction Net revenue to cover operations Expenses 4 Unrestricted expenses 5 Expenses funded by net assets released from restriction (if included in unrestricted) 6 Non-<:ash expenses Depreciation Amortization Straight-line adjustment 7 Principal and interest payments on indebtedness (f included in unrestricted expenses) 8 Capital Lease payments (if included in unrestricted) 9 Unrealized and realized gains and losses on investments (if included in unrestricted) 10 Gains or losses on sales of assets (if included in unrestricted) 11 Capital campaign revenues 12 Recurring capital campaign expenses 13 Principal and interest payments on indebtedness (if included in building fund expenses) 14 Capital Lease payments (if included in building fund expense) 15 Insurance Recovery Total Operating Expenses Net operating income to cover debt FY18 to date Oct ,440 '704 - ( ~ 103,973,287 87,588,891 ( ) (3.731, 162) (2,749) (365,816) (625,613) 82,396,134 21,577,153. FY17 FY16 FY15 FY14 187,714, ,672, ,684, , (292,086) (1,183,344) (2,779,196) (2,987,665) 187,421, ,488, , ,915, ,750, ,664, ,690, ,377,166 (292,086) (1, 183,344) (2,779,196) (2,987,665) (7,791,439) (10,823,439) (9,952,264) (9,288,588) (5.498) (5,498) (5,498) 5,498 (792,552) (878,187) (1,453,959) (1,407,639) ( ) (1,384,414) (1,378,213) 294,288 (5,546) (24,723) 147, ,341 (46,890) (16,412) 173,898, ,422, ,210, ,711,786 13,523,534 7,066,086 16,695,113 12,203, Required principal and interest payments on all indebtedness including Capital Leases (GAAP) 1,744,259 3,540,357 3,780,073 4,167,063 2,982,508 Ratio Value at Fiscal Year End: I I I- 3.a2 J 1.s1 I 4.01 r 4.o9 I Debt Covenant Requirement: 1.25 Does not include any gains/loss on assets, investments or insurance recovery Notes: 1 From statement of activities - total unrestricted revenue 2 From statement of activities - (Decrease) increase in fair value of interest rate swap 3 From statement of activities - total release from restriction 4 From statement of activities - total unrestricted expenses 5 From statement of activities- must equal item 2 6 Equals depreciation and bond amortization - see cash flow 7 Interest Payments only 8 No capital lease payments in unrestricted- presented in item 16 9 See SCA-unrealized and realized gains and losses for investments in unrestricted expenses 10 See expense worksheet or cash flow 11 No capital campaign revenues this FY 12 No capital campaign recurring expenses this FY 13 No principal and interest amounts in the building fund here in the ratio 14 No lease capital payments in the building fund in the ratio 15 See SOA 16 Equals all capital lease payments