Florida Institute of Technology

Transcription

1 Florida Institute of Technology November 30, 2016 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 of Technology, 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, 2016 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 oftime 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, 2016 and is attached for review. Cathy R. Wood Senior Vice President Financial Affairs/CFO 150 West University Boulevard, Melbourne, FL (321) Fax (321)

2 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS 10/31/ /31/2015 Cash and cash equivalents $ 14,191,391 $ 8,755,464 Accounts receivable, net 19,794,352 20,441,232 Pledges receivable, net 2,910,747 3,186,048 Prepaid expenses, inventories and other assets, net 5,907,869 5,297,777 Student loans receivable, net 4,895,791 5,126,081 Cash held with fiduciary 248,753 Investments 67,685,818 68,358,353 Long-lived assets, net 128,506, ,653,524 TOTAL ASSETS $ 243,892,066 $ 248,067,232 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses $ 24,399,227 $ 25,039,133 Deposits and deferred revenue 6,654,907 5,012,354 Annuities payable 1,998,248 1,956,297 Refundable goverrunent lo11ns 4,:'iRR,721 4,fi99,405 Capital lease obligations 16,553,937 17,288,273 Long-term debt 32,218,116 33,594,817 Total Liabilities 86,413,156 87,590,279 NET ASSETS Unrestricted 89,278,045 90,674,928 Temporarily restricted 16,573,092 18,664,250 Permanently restricted 51,627,773 51,137,775 Total Net Assets 157,478, ,476,953 TOTAL LIABILITIES AND NET ASSETS $ 243,892,066 $ 248,067,232 Note: Prior year figures have been adjusted to reflect October payroll accrual amounts for comparability pwposes. Sponsored program totals have been acijusted to eliminate dual presentation of indirect revenues and expenses.

3 CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE SIX MONTHS ENDING OCTOBER 31, 2016 Temporarily Permanently Unrestricted Restricted Restricted Total OPERATING ACTIVITIES Revenues and reclassifications: Tuition and fees $ 110,102,513 $ $ $ 110,102,513 Student aid-tuition and fees (30,373,770) p0,373,7702 Net tuition and fees 79,728,743 79,728,743 Gifts 707, ,115 Interest and dividends 4,542 4,542 Other operating 2,584,164 2,584,164 Federal!State grants & contracts 5,095,841 5,095,841 Private grants & contracts 908, ,762 Indirect cost recovery 1,431,600 1,431,600 Subtotal sponsored programs 7,436,203 7,436,203 Institutes and project research 337, ,091 Auxiliary enterprises 14,144,566 14,144,566 Net assets released from restrictions 516,161 {516,1612 Total operating revenues and reclassifications I 05,458,585 (516, ,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 14,428,941 14,428,941 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 17,829,476 17,829,476 Total operating expenses 90,745,075 90,745,075 Operating income/(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/(1oss) on disposition of assets (49,416) (49,416) Transfer 87,620 (87,6202 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 $ 89,278,045 $ 16,573,092 $ 51,627,773 $ 157,478,910

4 CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE SIX MONTHS ENDING OCTOBER 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted Total OPERATING ACTIVITIES Revenues and reclassifications: Tuition and fees $ 110,663,592 $ $ $ 110,663,592 Student aid-tuition and fees (27,928,116~ (27,928, 116) Net tuition and fees 82,735,476 82,735,476 Gifts 700, ,565 Interest and dividends 23,972 23,972 Other operating 2,797,459 2,797,459 Federal/State grants & contracts 5,482,878 5,482,878 Private grants & contracts 849, ,166 Indirect cost recovery 1,343,465 1,343,465 Subtotal sponsored programs 7,675,509 7,675,509 Institutes and project research 329, ,854 Auxiliary enterprises 14,940,017 14,940,017 Net assets released from restrictions 278,149 (278,149) Total operating revenues and reclassifications l 09,481,001 (278,149) I 09,202,852 Expenses: Instruction and departmental and public service 34,923,595 34,923,595 Academic support 8,763,600 8,763,600 Institutional support 15,945,183 15,945,183 Student services 9,802,193 9,802,193 Federal/State grants & contracts 6,318,612 6,318,612 Private grants & contracts 849, ,169 Subtotal sponsored programs 7,167,781 7,167,781 Institutes and project research 488, ,425 Auxiliary enterprises 22,509,409 22,509,409 Total operating expenses 99,600,186 99,600,186 Operating income/(loss) 9,880,815 (278,149) 9,602,666 NON-OPERATING ACTIVITIES Gifts (1,758) 104, ,474 Interest and dividends- endowment and other 25, , ,776 Net realized and unrealized gain/(loss) on investments (96,270) (2,041 '122) (2, 137,392) Insurance recovery 79,438 79,438 Gain/(loss) on disposition of assets (88, 185~ (88, 185) Non-operating income/(loss) ~79,27 4 ~ (1,490,847) 104,232 (1,465,8892 CHANGE IN NET ASSETS 9,801,541 (I' 768,996) 104,232 8,136,777 NET ASSETS- Beginning of year 80,769,644 20,536,989 51,033, ,340,176 NET ASSETS - End of period $ 90,571,185 $ 18,767,993 $ 51,137,775 $ 160,476,953 Note: Prior yearfigures have been adjusted to reflect October payroll accrual amounts for comparability purposes. Sponsored program totals have been adjusted to eliminate dual presentation of indirect revenues and expenses.

5 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDING 10/ / CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 16,776,105 $ 8,136,777 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 5,080,240 5,592,047 Accrued interest on capital leases (38,725) 75,079 Amortization of bond issuance costs 2,749 2,749 Net realized and unrealized (gain)/loss on investments (I,978,209) 2,137,392 Change in bad debt allowance for accounts receivable 542, ,023 Change in bad debt allowance for student loans receivable (2,263) (Gain)/loss on disposition of assets 49,416 88,185 Change in actuarial liability for annuities payable, net 38,239 (110,787) Change in assets and liabilities: Accounts receivable (13,084,237) (10,478,507) Pledges receivable (6,040) 95,763 Prepaid expenses, inventories and other assets 1,120,075 1,571,956 Student loans receivable (58,555) 428,316 Accounts payable and accrued expenses 1,887,855 (301,939) Deposits and deferred revenue (1,651,090) (3,617,801) Refundable government loans ~27, 452} ~46,629) Net cash provided by operating activities 8,653,273 4,174,361 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (554,832) (662,804) Proceeds from investments 219, ,645 Proceeds from disposition of assets 1,755,000 Purchase of long-lived assets (750,228) (5,255,201} Net cash used in investing activities 669,205 (5,711,360) CASH FLOWS FROM FINANCING ACTMTIES: Payment of annuity obligations (52,372) (56,037) Repayment of long term debt (600,212) (807,652) Repayment of capital lease obligations ( ) (218,811) Net cash (used)/providcd by financing activities (998,763) ~ 1,082,500) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND CASH HELD WITH FIDUCIARY 8,323,715 (2,619,499) CASH, CASH EQUIVALENTS AND CASH HELD WITH FIDUCIARY Beginning of period 5,867,676 11,623,716 CASH, CASH EQUIVALENTS AND CASH HELD WITH FIDUCIARY End of period $ 14, $ AS PRESENTED ON STATEMENTS OF FINANCIAL POSITION Cash and cash equivalents $ 14,191,391 $ 8,755,464 Cash held with fiduciary 248,753 $ 14,191,391 $ 9,004,217 SUPPLEMENTAL CASH FLOW INFORMATION- Interest Paid $ 703,639 $ 602,443

6 Florida Institute of Technology, Inc. Debt Covenant Ratio FY17 FY16 FY15 FY14 FY13 FY12 The ratio of (x): to date Oct 31, 2016 Revenue 1 Unrestricted revenue 105,458, ,672, ,684, ,903, ,417, ,505,223 2 Interest Rate Swap - (36,024) (2,1 04,571) 3 Net assets released from restriction (516,161) (1,183,344) (2,779,196) (2,987,665) (2,676,313) (2,862,420) Net revenue to cover operations 104,942, ,488, ,905, ,915, ,705, ,538,232 Expenses 4 Unrestricted expenses 90,745, ,664, ,690, ,377, ,739, ,578,423 5 Expenses funded by net assets released from restriction (if included in unrestricted) (516,161) (1, ) (2, 779, 196) (2,987,665) (2,676,313) (2,862,420) 6 Non-cash expenses Depreciation (5,080,240) (1 0,823,439) (9,952,264) (9,288,588) (7,952,381) (6,096,670) Amortization (2,749) (5,498) (5,498) 5, ,807 82,294 Straight-line adjustment (409,098) (878,187) (1,453,959) 7 Principal and interest payments on indebtedness (if included in unrestricted expenses) (655,261) (1,351,627) (1,384,414) (1,378,213) (2,016,171) (2,078,288) 8 Capital Lease payments (if included in unrestricted) 9 Unrealized and realized gains and losses on investments (if included in unrestricted) - (5,546) 10 Gains or losses on sales of assets (if included in unrestricted) 147, 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 (46,890) (16,412) (13,285) (98,641) Total Operating Expenses 84,081, ,422, ,210, ,711, ,313, ,524,698 Net operating income to cover debt 20,860,858 7,066,086 16,695,113 12,203,974 11,392,546 16,013, Required principal and interest payments on all indebtedness including Capital Leases (GAAP) 1,616,552 3,780,106 4,167,063 2,982,508 4,515,759 4,222,616 Ratio Value at Fiscal Year End: [ ~87[ 4.01, c=y:52] [ Debt Covenant Requirement: 1.25 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 No unrealized and realized gains and losses for investments in unrestricted expenses 10 No gains or losses on sales of assets this FY 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 Equals all principal and interest payments 16 Equals all capital lease payments