THE UNIVERSITY OF TEXAS OF THE PERMIAN BASIN

Transcription

1 THE UNIVERSITY OF TEXAS OF THE PERMIAN BASIN ANNUAL FINANCIAL REPORT (WITH DETAILED SUPPORTIVE SCHEDULES) UNAUDITED FISCAL YEAR ENDED AUGUST 31, 2017 The University of Texas at Arlington The University of Texas at Austin The University of Texas at Dallas The University of Texas at El Paso The University of Texas of the Permian Basin The University of Texas Rio Grande Valley The University of Texas at San Antonio The University of Texas at Tyler The University of Texas Southwestern Medical Center The University of Texas Medical Branch at Galveston The University of Texas Health Science Center at Houston The University of Texas Health Science Center at San Antonio The University of Texas M. D. Anderson Cancer Center The University of Texas Health Science Center at Tyler The University of Texas System Administration

2

3 THE UNIVERSITY OF TEXAS OF THE PERMIAN BASIN FINANCIAL STATEMENTS (WITH DETAILED SUPPORTIVE SCHEDULES) Presented herein are the financial statements with detailed supportive schedules for The University of Texas of the Permian Basin for the year ended August 31, These Statements and detailed supportive schedules have been prepared in compliance with applicable State statutes, Governmental Accounting Standards Board pronouncements, and the Texas Comptroller of Public Accounts' Annual Financial Reporting Requirements. This "detailed internal report" supplements the consolidated published Annual Financial Report of The University of Texas System and is intended to be for limited distribution primarily to financial and academic officers of the University who need access to the details included herein. It also provides an historical record of transactions relating to this particular institution. The Annual Financial Report for public distribution for The University of Texas System includes primary statements on a consolidated System-wide basis, including footnotes and Managements' Discussion and Analysis.

4

5 THE UNIVERSITY OF TEXAS SYSTEM BOARD OF REGENTS As of August 31, 2017 Officers Paul L. Foster, Chairman R. Steven "Steve" Hicks, Vice Chairman Jeffery D. Hildebrand, Vice Chairman Francie A. Frederick, General Counsel to the Board of Regents Members Terms scheduled to expire February 1, 2019* Paul L. Foster Jeffery D. Hildebrand Ernest Aliseda El Paso Houston McAllen Terms scheduled to expire February 1, 2021* R. Steven "Steve" Hicks David J. Beck Sara Martinez Tucker Austin Houston Dallas Terms scheduled to expire February 1, 2023 * Janiece Longoria Kevin P. Eltife James Conrad "Rad" Weaver Houston Tyler San Antonio Term scheduled to expire May 31, 2018* Jaciel Castro (Student Regent) San Antonio *Each Regent's term expires when a successor has been appointed, qualified, and taken the oath of office. The Student Regent serves a one-year term.

6

7 THE UNIVERSITY OF TEXAS SYSTEM SENIOR ADMINISTRATIVE OFFICIALS As of August 31, 2017 ******** William H. McRaven, Chancellor David E. Daniel, Deputy Chancellor Raymond S. Greenberg, Executive Vice Chancellor for Health Affairs Scott C. Kelley, Executive Vice Chancellor for Business Affairs Steven W. Leslie, Executive Vice Chancellor for Academic Affairs Stephanie A. Bond Huie, Vice Chancellor for Strategic Initiatives Barry R. McBee, Vice Chancellor and Chief Governmental Relations Officer Randa S. Safady, Vice Chancellor for External Relations Daniel H. Sharphom, Vice Chancellor and General Counsel William H. Shute, Vice Chancellor for Federal Relations Amy Shaw Thomas, Vice Chancellor for Academic and Health Affairs Thomas Britton "Britt" Harris IV, Chief Executive Officer and Chief Investment Officer-UTIMCO ********

8

9 THE UNIVERSITY OF THE PERMIAN BASIN PRINCIPAL ADMINISTRATIVE OFFICERS As of August 31, 2017 ******** Sandra K. Woodley, President Dan Heimmermann, Provost and Vice President for Academic Affairs Mark McGurk, Vice President for Business Affairs Teresa Sewell, Senior Associate Vice President for Student Services and Academic Affairs Lowell Ballard, Chief Information Officer Juli Ratheal, Associate Vice President of Research Cuca Franco, Interim Director of Accounting Glenn S. Spencer, Director of Internal Audit ********

10

11 TABLE OF CONTENTS THE UNfVERSITY OF TEXAS OF THE PERMIAN BASIN PRIMARY STATEMENTS ExhfbltA Exhibit B Exhibit C ExhlbltD Statement of Net Position Statement of Revenues. Expenses, and Changes In Net Position... 4 Statement of Cash Flows... 6 Comparison of Budget to Actual Statement of Revenues, Expenses, and Changes In Net Position., 7 SUPPORTING SCHEDULES Schedule A-1 Schedule A-3a Schedule 8 1 Schedule B 2 Schedule B-3 Schedule 84 Schedule B 6a Schedule B-7 Schedule B-8 Schedule B-11 Schedule B-13 Schedule C-1 Schedule C-2 Note 20 Schedule 1A Schedule 18 Schedule of Cash, Cash Equivalents and Investments Schedule of Legislative Appropriations Schedule of E&G Funds Summary of Operations Schedule of Designated Funds - Summary of Operations Schedule of Auxiliary Enterprise Funds - Summary of Operations Schedule of Restricted Expendable Funds - Summary of O~ratlons Schedule of Changes In Net Position - Endowment and Similar Funds - Other than State Schedule of Changes In Net Position - Annuity and Life Income Funds..., Schedule of Changes In Net Position - Unexpended Plant Funds Schedule of Changes In Investment In Plant Schedule of Transfers Between Funds Schedule of Tultlon and Fees Revenues Schedule of Expenses by Object and Fund Group Expense ClasslHcatlon Summary Schedule of Federal Financial Assistance Schedule of State Grant Pass Throughs From/To Other State Agencies SUPPLEMENTAL SCHEDULES Schedule S-4a Supplemental Schedule S-8 Schedule S-11a - Schedule S 11 b - Schedule S-11 c - Schedule S-11d - Schedule S-11 e - Schedule S-11 f Schedule S-11g Schedule of Federal Expenditures by NA CU BO Expenditure Function Schedule of Changes In Net Position Unexpended Plant Funds... : Schedule of Changes In Investment in Plant Land Schedule of Changes In Investment fl) Plant Buildings Schedule of Changes in Investment In Plant Facllltles and Other Improvements Schedule of Changes in Investment In Plant EquJpment Schedule of Changes In Investment In Plant - Construction In Progress Schedule of Changes in Investment In Plant - Infrastructure Schedule of Changes fn Investment In Plant - Intangible Assets... 52

12

13 PRIMARY STATEMENTS

14 2 The University of Texas Of the Permian Basin Exhibit A Statement of Net Position As of August 31, 2017 Educational and Res1ricted General Designated Auxiliary Enterprises Expendable ASSETS AND DEFERRED OUTFLOWS Current Assets: Cash & Cash Equivalents $ (4,612,900.99) 13,841, ,235, Restricted Cash & Cash Equivalents 9, 121, Balance in State Appropriations 1, 112, Accounts Receivable, Net: Federal (allow. $ in 2017 & $ in 2016) (838,338.08) Other lntergov. (allow. $ in 2017 & $ in 2016) 3,086, Student (allow. $ in 2017 & $ in 2016) 502, ,396, ,645, Contributions (allow. $225, in 2017 & $266, in 2016) 2,030, Other (allow. $2, in 2017 & $2, in 2016) 9,672, (668,651.31) (45,141.01) 548, Due From Other Funds Due From Sys1em Administration 12, Due From Other Institutions 11, Due From Other Agencies 23, , Inventories 423, , Loans & Contracts (allow. $269, ln 2017 & $269, in 2016) Other Current Assets 413, ,168, , , Total Current Assets 7,112, ,172, ,871, ,431, Noncurrent Assets: Restricted Investments 2,860, Funds Held by System Adminis1ration (Restricted) Contributions Rec. (allow. $279, in 2017 & $284, in 2016) 2,516, Unrestricted Investments 5,524, , Gross Capital/Intangible Assets Accumulated Depreciation/Amortization Total Noncurrent Assets 5,524, , ,377, Total Assets 7,112, ,697, ,061, ,809, Total Assets and Deferred Outflows 7,112, ,697' ,061, ,809, LIABILITIES AND DEFERRED INFLOWS Current Liabilities: Accounts Payable and Accrued Liabilities 198, ,667, , Salaries Payable (642,681.69) 1,509, , , Due To Other Funds 262, Due To System Administration 535, Unearned Revenue 5,483, , 103, ,992, , Employees' Compensable Leave - Current Portion 357, , , Notes, Loans, and Leases Payable Payable From Restricted Assets 132, Assets Held for Others Other Current Liabilities Total Current Liabilities 6,490, ,380, ,947, ,258, Noncurrent Liabilities: Employees' Compensable Leave 585, , , Assets Held for Others Notes, Loans, and Leases Payable Total Noncurrent Liabilities 585, , Total Liabilities 7,076, ,541, ,061, ,258, Total Liabilities and Deferred Inflows 7,076, ,541, ,061, ,258, NET POSITION Net Investment in Capital Assets Res1ricted for: Nonexpendable Permanent Health, True Endowments, and Annuities Expendable Capital Projects Funds Functioning as Endowment (Res1ricted) Other Expendable 18,551, Unrestricted 36, ,155, (452.03) Total Net Position $ 36, , 155, (452.03} 18,551,

15 3 Endowment and Similar Funds - Other Annuity and Life Unexpended Plant Loan Funds Than State Income Funds Funds Investment in Plant Agency Funds Current Year Totals Prior Year Totals (1,719,866.15) 587, , , , ,297, , (16,407.60) (888,543.82) 1,007, ,839, (148,105.96) 8,744, ,394, ,112, (766, ) 3,086, ,528, ,030, ,619, , ,309, , , , , ,288, ,457, , 178, , (1,446,606.03) 2,901, ,972, ,396, , , ,468, , , , , , 167, ,308, , ,205, (139,042,878.82) 46,308, , , 162, ,007, ,308, , ,839, ,162, (148,105.96) 1,007, ,308, , ,839, ,162, (148,105.96) 3,523, ,308, ,516, ,714, ,205, (139,042,878.82) 273,225, ,513, ,513, ,656, ,779, ,564, , ,290, (123,696,005.98) 265,709, ,876, ,876, ,659, , ,641, ,468, , , ,708, , ,609, ,562, , , ,744, , , , , ,659, , , 172, (203,733.46) (203, ) 1,659, (148,105.96) 1,659, (148,105.96) 861, (203,733.46) 657, ,449, ,449, , (26,840.79) 780, ,953, ,953, , 162, ,162, ,594, ,959, , ,675, , ,007, ,949, ,007, ,308' , ,180, , 162, ,621, ,675, , ,507, ,064, ,946, ,040, , ,779, ,923,

16 4 The University of Texas of the Permian Basin Exhibit B Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended August 31, 2017 Educational and Auxiliary Restricted General Designated Enterprises Expendable Loan Funds Operating Revenues: Student Tuition and Fees $ 8,333, ,833, ,268, Discounts and Allowances (3,048, ) (7,796,923.60) (1,058,312.39) Federal Sponsored Programs 1,585, Federal Sponsored Programs Pass-Through from State Agencies 132, ,789, State Sponsored Programs Pass-Through from State Agencies 2,235, ,023, , Local Sponsored Programs 1,375, Private Sponsored Programs , Sales and Services of Educational Activities 1,491, ,762, Auxiliary Enterprises 7,968, Discounts and Allowances Auxiliary Enterprises (1,458,467.30) Other Operating Revenues Total Operating Revenues 7,527, ,299, ,720, ,703, Operating Expenses: Instruction 17,394, , 155, ,670, Research 395, , , Public Service 723, (2,456,972.26) 3,894, Academic Support 3,270, ,746, , Student Services 1,668, ,379, , Institutional Support 4,522, ,776, , Operations and Maintenance of Plant 4,450, ,480, , Scholarships and Fellowships 465, ,127, ,198, Auxiliary Enterprises 14, ,466, ,385, Depreciation and Amortization Total Operating Expenses 32,892, ,480, ,466, ,428, Operating Income (Loss) (25,364,298.84) 1,818, ,253, (2,724,696.95) Nonoperating Revenues (Expenses): State Appropriations 34,349, Federal Nonexchange Sponsored Programs 6,978, Federal Nonexchange Pass-Through State Nonexchange Pass-Through Gift Contributions for Operations 10, ,073, Investment Income 90, , ,520, Net Increase (Decrease) in Fair Value of Investments 364, Other Nonoperating Revenues 2, ,529, Other Nonoperating (Expenses) Net Nonoperating Revenues (Expenses) 34,442, ,987, ,572, lncome/(loss) Before Other Revenue, Expenses, Gains/(Losses), and Transfers 9,078, ,806, ,253, ,847, Gifts and Sponsored Programs for Capital Acquisitions 307, Additions to Permanent Endowments I Annuities Reclass from/(to) Other Institutions Capital Asset Purchases (104,497.72) (88,539.84) (37,428.77) (395, ) Transfers Between Institutions & System, Debt Service - Mandatory (12,186,357.00) (21,30) (5,393,853.23) Transfers Between Institutions & System Admin. - Non mandatory (167,280.51) Transfers From Other State Agencies 3,769, Legislative Appropriations Lapsed Transfers Between Funds (520,591.29} 1,748, ,185, (7,070,187.56) 199, Change in Net Position 36, ,278, , ,689, , Beginning Net Position 8,877, (8,748.00} 16,861, , Ending Net Position $ 36, , 155, {452.03) 18,551, ,007,677.58

17 5 Endowment and Similar Funds - Annuity and Life Unexpended Plant Current Year Other Than State Income Funds Funds Investment in Plant Totals Prior Year Totals 33,434, (11,903,419.16) 1,585, ,921, ,308, ,375, , ,254, ,968, (1,458,467.30) ,251, , 196, (7,753,682.15) 1,270, , 154, ,823, , 105, , ,051, , 172, (1,347,367.40) ,426, ,220, , 161, ,161, ,354, ,217, ,486, ,230, ,238, ,791, ,866, ,230, ,843, ,340, (2,230,039.66) (15,843,519.02) (43,089,936.86) 23,299, , ,351, ,829, ,347, ,387, ,850, ,352, ,360, ,335, (38,909,648.16) 34,349, ,978, ,281, ,224, ,084, , , ,931, ,943, (199,956.34) 3, 108, , ,570, (8,295.11) (7,406.44) 2,952, , , ,015, ,952, , (2,230,039.66) (15,812,918.67) 8,925, , ,661, (80,424.11) 103,65 41,009, ,099, , , , , (28,299,591.62) (28,299,591.62) (11,445,932.04) 12,071, (263,931.40) (17,865,441.63) 55,588, ,420, ,769, , ,528, , ,802, (3,431,975.13) 23, 140, , ,928, (12,877,209.40) 5,006, , (80,923.28) 22,854, ,779, , , ,594, ,923, ,308, , ,180, ,162, ,064, , ,923,796.54

18 6 The University of Texas of the Permian Basin Exhibit C - Statement of Cash Flows For the Year Ended August 31, 2017 Cash Flows from Operating Activities: Proceeds from Tuition and Fees Proceeds from Sponsored Programs Proceeds from Auxiliaries Proceeds from Other Revenues Payments to Suppliers Payments to Employees Payments for Loans Provided Proceeds from Loan Programs Net Cash Provided (Used) by Operating Activities Current Year Totals 29,383, ,963, ,509, {4,011,916.50) (26,602,792.00) (42,891, } (744,323.32) (27,931,115.35) Prior Year Totals 13,363, ,896, ,098, ,775, (22,812,477.20) (41,708,492.11) (29,320,367.62) Cash Flows from Noncapital Financing Activities: Proceeds from State Appropriations Proceeds from Operating Gifts Proceeds from Private Gifts for Endowment and Annuity Life Purposes Proceeds from Other Nonoperating Revenues Receipts for Transfers from System or Other Agencies Payments for Transfers to System or Other Agencies Payments for Other Uses Proceeds from Nonexchange Sponsored Programs Net Cash Provided by Noncapital Financing Activities 34, 142, ,498, , ,532, ,546, (1,956,323.61) ,978, ,314, ,500, ,546, , , ,224, ,576, Cash Flows from Capital and Related Financing Activities: Nonmandatory Capital Related Transfers Proceeds from Capital Appropriations, Grants, and Gifts Payments for Additions to Capital Assets Mandatory Transfers to System for Capital Related Debt Net Cash Provided (Used) by Capital and Related Financing Activities 15,447, , (14,827,625.12) (17,865,441.63) (16,938,456.25) 30,767, (33,873,747.48) (12,877,209.40} (15,983,545.66) Cash Flows from Investing Activities Proceeds from Sales of Investments Invested by System Proceeds from Interest and Investment Income Proceeds from Interest and Investment Income Invested by System Payments to Acquire Investments Payments to Acquire Investments Invested by System Net Cash Provided (Used) by Investing Activities 90, ,854, (229,571.50} (7,657,567.06) (4,942,483.15) 7,501, , ,610, (31,553.50) 9,130, Net Increase (Decrease) in Cash Cash and Cash Equivalents (Beginning of the Year) Cash and Cash Equivalents (End of the Year) 502, ,635, $ 19,138, ,403, ,232, $ 18,635, Reconciliation of Net Operating Revenues (Expenses) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Results to Net Cash: Depreciation and Amortization Expense Bad Debt Expense Changes in Assets and Liabilities: Accounts Receivable Inventories Loans and Contracts Other Current and Noncurrent Assets Accounts Payable Due to System Unearned Revenue Assets Held for Others Employees' Compensable Leave Other Current and Noncurrent Liabilities Total Adjustments Net Cash Provided (Used) by Operating Activities (43,089,936.86) 15,843, , {4,426, ) (30,685.66} (282,210.71) (1,173,811.29) 2,336, , ,963, (176,892.67) 106, (12,203.20) 15, 158, $ (27,931, ) (38,909,648.16) 13,945, , {12,605,776.31) {17,496.69) 67, (24,316.55) (459,096.00) 142, ,062, , , , ,589, $ (29,320,367.62) Non Cash Transactions: Net Increase (Decrease) in Fair Value of Investments Donated Capital Assets Miscellaneous Noncash Transactions 3, 108, , , (80,424.11) 103,65

19 7 The University of Texas of the Permian Basin Exhibit D Comparison of Budget to Actual Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended August 31, 2017 Operating Budget Actual OPERATING REVENUES: Net Student Tuition and Fees Federal Sponsored Programs State Sponsored Programs Local and Private Sponsored Programs Net Sales and Services of Educational Activities Net Auxiliary Enterprises Other Operating Revenues Total Operating Revenues $ 18,853, ,531, , 167, ,507, ,635, ,308, , ,452, ,696, ,254, ,586, ,510, , ,550, ,251, OPERATING EXPENSES: Instruction Research Public Service Academic Support Student Services Institutional Support Operations and Maintenance of Plant Scholarships and Fellowships Auxiliary Enterprises Depreciation and Amortization Total Operating Expenses 21,564,09 31,220, , 756, ,161, ,084, ,161, ,553, ,354, ,503, ,217, ,863, ,486, ,839, ,238, ,943, ,791, ,965, ,866, ,843, ,039, ,340, Operating Income (Loss) (38,489,028.00) (43,089,936.86) NONOPERATING REVENUES (EXPENSES): State Appropriations Federal Nonexchange Sponsored Programs Gift Contributions for Operations Investment Income Net Increase (Decrease) in Fair Value of Investments Other Nonoperating Revenues (Expenses) Net Nonoperating Revenues (Expenses) 38,302,20 34,349, , 198, ,978, ,500,00 2,084, ,441, ,931, ,108, ,563, ,442, ,015, TRANSFERS AND OTHERS: Capital Appropriations, Gifts, and Sponsored Programs Additions to Permanent Endowments Transfers for Debt Service Transfers and Other Total Transfers and Other 800,00 616, ,000,00 572, (17,966, ) (17,865,441.63) , ,833, ,214, Change in Net Position $ 25,787, , 140,343.63

20 This page intentionally left blank

21 SUPPORTING SCHEDULES

22 0 The University of Texas of the Permian Basin Schedule A-1 Schedule of Cash, Cash Equivalents, and Investments As of August 31, 2017 CURRENT ASSETS Un restricted Restricted Cash & Cash Equivalents Cash on Hand Petty Cash $ 1, Cash in Transit Subtotal Cash on Hand 1, Cash in Bank Demand Cash Held by System Demand Accounts (2,834,824.62) 9,408, Subtotal Cash in Bank (2,834,824.62) 9,408, Cash in State Treasury Available University Fund Permanent University Fund Permanent Health Fund ROI Fund 211 Local Revenue Fund 9, 116, Direct Deposit of Bills - Holding Account Fund Departmental Suspense Fund US Savings Bond Account Fund Deferred Compensation 401 K Fund Direct Deposit Hold - Transmit Account Fund Correction Account for Direct Deposit Fund Subtotal Cash in State Treasury 9, 116, Cash Equivalent Investments (Intent) US Treasury Bills and Notes Time Deposits Repurchase Agreements - Texas Treasury Safekeeping Trust Co. Money Market Funds 2,460, , Subtotal Cash Equivalent Investments 2,460, , Reimbursements due from State Treasury Total Cash and Cash Equivalents (Exhibit A) $ 8,744, ,394, NONCURRENT ASSETS Unrestricted Restricted Current Year Total Prior Year Total 1, , , , ,573, ,573, ,902, , 116, ,992, , 116, ,992, ,446, , ,446, ,405, , 138, ,635,799.50

23 The University of Texas of the Permian Basin Schedule A-1 Schedule of Cash, Cash Equivalents, and Investments As of August 31, 2017 NONCURRENT ASSETS Unrestricted Restricted Investments Funds Held by System Administration $ 46,308' Pooled Operating Funds (Held by System - ITF) 5,714, ,860, Bonds and Preferred Stock Stocks Real Estate Mortgages and Other Notes Real Estate PUF Investment- Other Mineral Rights and Other Royalties Physical Commodity Investment Funds Other Investments 662, Investment Derivatives - Asset Positions Total Investments (Exhibit A) 5, 714, ,831, Current Year Total Prior Year Total 46,308, , 779, ,575, ,137, , , ,545, ,550, Securities Lending Collateral Total Investments and Securities Lending Collateral (Exhibit A) $ 5, 714, ,831, ,545, ,550,

24 UNAUDITED Schedule A-3a The University of TX of the Permian Basin Schedule of Legislative Appropriations For the Period Ended August 31, 2017 "' General Revenue Appropriations Legislative BALANCES Deduct Estimated Reported Appropriation August 31, 2016 Currently Locally Collected as BALANCES Number Aeeroeriat1ons Aeproeriated Income as Aeelied Income Transfers Exeended Laesed August 31, 2017 Current General Funds S.B. 1, 84th Legislature, Regular Session Professional Nursing Shortage Reduction , (37,749.49) Group Insurance , (122,160.79) H.B. 1, 84th Legislature, Regular Session Educational and General State Support , (19,846.81) () Hazlewood Reimbursement TVC , (33,086.00) Professional Nursing Shortage Reduction , (565,453.32) (51,072.71) Engineering Summer Program , (3,061.54) (7,674.84) College Work Study Program (0.09) Comprehensive Research Fund , (7,102.26) (3,716.67) Social Security Matching , (137,236.89) 9, Group Insurance , , (405, ) Optional Retirement Program Matching , , (143,055.32) S.B. 1, 85th Legislature, Regular Session Educational and General State Support ,309, (6,324,57) 29,985, (29, 985, ) Hazlewood Reimbursement TVC , , Professional Nursing Shortage Reduction ,074, (72,908.36) 1,001, Engineering Summer Program , (7,593.82) 7, College Work Study Program , (15,829.94) 10, Comprehensive Research Fund ,95 49,95 7, , Social Security Matching ,496, ,496, (1,496, ) Group Insurance ,948, ,948, (1,948,388.43) Optional Retirement Program Matching , , (483,732.59) Matching Portion of Staff Benefits Paid by State Retirement Plans ##-##### (105,157.91) (105,157.91) 105, Unemployment Compensation Insurance ##-##### 7, , (7,659.73) Total General Revenue Appropriations 905, ,190, (6,324,57) 34,349, , (34,725,969.39) 1, 112,606.98

25 13 The University of Texas of the Permian Basin Schedule B-1 E&G Funds - Summary of Operations For the Year Ended August 31, 2017 Operating Revenues: Gross Student Tuition Other Fees Discounts & Allowances Tuition and Fees Net Tuition and Fees State Sponsored Programs Pass-Through from State Agencies Other Operating Revenues Total Operating Revenues Operating Expenses: Salaries and Wages Payroll Related Costs Membership Dues Registration Fees, Meetings, Conferences Cost of Goods Sold Professional Fees and Services Other Contracted Services Travel Materials and Supplies Utilities Communications Repairs and Maintenance Rentals and Leases Printing and Reproduction Scholarships and Fellowships Other Operating Expenses Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): State Appropriations Investment Income Other Nonoperating Revenues Net Nonoperating Revenues (Expenses) Income (Loss) Before Other Revenues, Expenses, Gains or Losses: Capital Asset Purchases Transfers In Transfers Out Change in E&G Funds Net Position Total Student Activities $ 8,308, ,308, , , {3! } (31048!183.17} 5,284, ,284, ,235, ,235, ,527, ,527, ,667, ,667, ,065, ,065, , , ,54 9, , , , , , , , , , , , , , , , , ,08 2,08 422, , , , ,892, ,892, {25,364,298.84) {25,364,298.84) 34,349, , ! ,078, (104,497.72) 99,535, {108,473,036.17} 36, Net Position - September 1, 2016 Net Position - August 31, 2017 (See NOTE) $ 36, NOTE: Ending Net Position August 31, 2017 was composed of the following: Unrestricted: Reserved Other Specific Purposes: Unreserved Allocated Unallocated Total Unrestricted Net Position 36, $====3=6=,4=2=9=.3=8

26 14 The University of Texas of the Permian Basin Schedule B-2 Designated Funds - Summary of Operations For the Year Ended August 31, 2017 Operating Revenues: Gross Designated Tuition Other Fees Discounts & Allowances Designated Tuition and Fees Net Designated Tuition and Fees Federal Sponsored Programs Pass-Through from State Agencies State Sponsored Programs Pass-Through from State Agencies Private Sponsored Programs Sales and Services of Educational Activities Other Operating Revenues Total Operating Revenues Operating Expenses: Salaries and Wages Payroll Related Costs Membership Dues Registration Fees, Meetings, Conferences Professional Fees and Services Other Contracted Services Fees and Other Charges Travel Materials and Supplies Utilities Communications Repairs and Maintenance Rentals and Leases Printing and Reproduction Bad Debt Expense Insurance Costs/Premiums Scholarships and Fellowships Other Operating Expenses Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Gift Contributions for Operations Investment Income Net Increase (Decrease) in Fair Value of Investments Other Nonoperating Revenues Other Nonoperating (Expenses) Net Nonoperating Revenues (Expenses) Income (Loss) Before Other Revenues, Expenses, Gains or Losses: Capital Asset Purchases Transfers In Transfers Out Change in Designated Funds Net Position Net Position - September 1, 2016 Net Position -August 31, 2017 (See NOTE) $ $ Instruction Net Service Total and Other DeQartments 15,526, ,526, ,306, ,306, (7,796,923.60} (7)96,923.60} 14,036, ,036, , , ,023, ,023, ,491, , , ,299, ,763, , , 195,48 4,188, , ,250, ,249, , , , (191.26) 79, , ,439, ,439, ,566, ,565, , , , , , ,095, , 112, (17,836.83) 1,444, ,444, , , , , , (6,924.57) 614, , , , , , , , ,244, ,244, , , ,480, ,295, , ,818, ,468, , , , , ,529, ,987, ,806, (88,539.84) 17,903, (16,343, } 6,278, , 155,862.93

27 15 The University of Texas of the Permian Basin Schedule 8-2 Designated Funds - Summary of Operations For the Year Ended August 31, 2017 NOTE: Ending Net Position August 31, 2017 was composed of the following: Unrestricted: Reserved Inventories Other Specific Purposes: Unreserved Allocated Student Fees Total Net Position $ 423, , $======1=5=,1=55='=86=2=.9=3

28 The University of Texas of the Permian Basin Schedule 8-3 Auxiliary Enterprise Funds - Summary of Operations For the Year Ended August 31, 2017 O'l Operating Revenues: Student Fees Discounts & Allowances Student Fees Net Student Fees Sates and Services Rentals and Leases Parking Violations Other Operating Revenues Discounts and Allowances Auxiliary Enterprises Net Auxiliary Enterprises Intercollegiate Housing and Food Student Health Student Service Total Athletics Service Bookstore Parking and Traffic Center Fees Student Activities Other 3,268, ,034, , , ,055, (1,058,312.39) (1,058,312.39) 2,209, ,034, , , ,055, (1,058,312.39) 6,976, , ,974, , , (363,434.30) 12, ,80 19,80 6, , , , , , , , (1,458,467.30) (1,458,467.30) 6,510, , ,740, , , , (363,299.62) (1,424,754.01) Total Operating Revenues 8,720, ,362, ,740, , , , , (2,483,066.40) Operating Expenses: Salaries and Wages Payroll Related Costs Membership Dues Registration Fees, Meetings, Conferences Professional Fees and Services Other Contracted Services Fees and Other Charges Travel Materials and Suppries Utilities Communications Repairs and Maintenance Rentals and Leases Printing and Reproduction Royalty Payments Insurance Costs/Premiums Scholarships and Fellowships Other Operating Expenses 2, 178, , , , , ,906, , , , , , , , , , , , ,012, , , , , , , , , ,846, , , , , , , , , , , , ,66 108, , , , , , , , , ,00 636, , , , , , , , , , , , , , , , , , , , , , , , (146,806.24) 8, Total Operating Expenses 7,466, ,394, ,443, , ,380, , , Operating Income (Loss) 1,253, (1,031,927.05) 4,296, , , _(3B6.J!j4.05) , (2,5:35,30_()_922 Nonoperating Revenues (Expenses): Investment Income Net Nonoperating Revenues (Expenses) Income (Loss) Before other Revenues, Expenses, Gains or Losses Capital Asset Purchases Transfers In Transfers Out Change in Auxiliary Funds Net Position Net Position - September 1, 2016 Net Position - August 31, 2017 (See NOTE) ,253, (37,428.77) 4,501, (5,710, ) 8, (8,748 00) (452.03) NOTE: Ending Net Position August 31, 2017 was composed of the following: Unrestricted: Reserved Inventories other Specific Purposes. Unreserved Allocated Unallocated Total Unrestricted Net Position (21,928.98) (452.03)

29 The University of Texas of the Permian Basin Schedule B-4 Restricted Expendable Funds - Summary of Operations For the Year Ended August 31, 2017 Total Federal Federal Indirect Cost Recoveries State State Indirect Cost Recoveries Local Indirect Private Indirect Local Cost Recoveries Private Sector Cost Recoveries Operating Revenues: Sponsored Program Revenues Sponsored Program Pass-Through From State Agencies Net Sales and Services of Educational Activities Other Operating Revenues Total Operating Revenues $ 3,038, ,838, ,762, , ,703, ,718, ,789, ,921, (132,062.73) 48, (50,945.10) 1,375, , (409.13) , , ,428, (132,062.73) 940, (50,945.10) 1,381, ~6, _(409.1_3) Operating Expenses: Salaries and Wages Payroll Related Costs Membership Dues Registration Fees, Meetings, Conferences Professional Fees and Services Other Contracted Services Fees and Other Charges Travel Materials and Supplies Communications Repairs and Maintenance Rentals and Leases Printing and Reproduction Insurance Costs/Premiums Scholarships and Fellowships Other Operating Expenses Total Operating Expenses 3,986, , , , , ,468, , , , , , , , , ,929, , ,428, '708, , , , , , , , , , , , , , , , , , ,442, , , , , , , , , , , , , , , , , , , ,57 11, , ,866, (5,936,301.75) 41, , , , ,353, , ,375, (2, 178,517.56) Operating Income (Loss) (2,724,696.95) (4,924,703.83) (132,062.73) 62, (5_0,9_15..1.Q) 6, ,314, (409.13) Nonoperating Revenues (Expenses): Federal Nonexchange Sponsored Programs Gift Contributions for Operations Investment Income Net Nonoperating Revenues (Expenses) $ 6,978, ,073, ,520, ,572, Income (Loss) Before Other Revenues, Expenses, Gains or Losses Capital Asset Purchases Gifts and Sponsored Programs for Capital Acquisitions Transfers In Transfers Out Change in Restricted Expendable Net Position Net Position - September 1, ,847, (395, ) 307, , (7,253,313.87) 1,689, ,861, NOTE: Indirect Cost Recoveries made up as follows: Instruction Research Public Service Total Indirect Cost Recoveries 37, (17,270.78) 163, , Net Position - August 31, 2017 $ 18,551, J

30 The University of Texas of the Permian Basin Schedule B-6a Schedule of Changes in Net Position Endowment and Similar Funds - Other Than State As of August 31, Net Increase (Decrease) in Fair lnvesbnent Net Other Net Position Gift Additions to lnvesbnent Value of Income (Realized Additions/ Net Position September 1, 2016 Endowments Income Investments Gains and losses) Deductions August 31", 2017 TRUE ENDOWMENT FUNDS INSTRUCTION J. Conrad Dunagan Chair In Regional And Business Kathlyn Cosper Dunagan Chair In The Humanities Mr. And Mrs. Louis Rochester Professorship In Fine Arts Pinkie Roden Chair For Entrepreneurship In The School Petroleum Engineering Professorship Carol & Jerry Pitts Endowed Professorship of Petroleum Engineering Nelson Allison and Marion Luper Endowed Scholarship 1,325, , , ,025, , , , , ,00 91, , , , , , , (826, } 1,416, , , ,095, , , , TOTAL INSTRUCTION 4,580, , , (826,194.78) 4,069, RESEARCH Ellen And Bill Noel Distinguished Professorship For 841, , , TOTAL RESEARCH 841, , , ACADEMIC SUPPORT Thomas E. Schaefer Group Study Room Jack Ladd School of Business Fellowship Jack Ladd School of Business Endowment Charles and Linda Sorber Faculty Fellowship in Art Jack Ladd Memorial Endowment William and Ordelle Watts Professorship in Engineering Dr. James Olson/Paula Henry Endowed Fellowship in Psychology Chevron Endowed Chair in Petroleum Engineering V. Ray Cardozier Endowed University Professorship Kathlyn Cosper Dunagan Professorship II Kathlyn Cosper Dunagan PrOfessorship Ill Kathlyn Cosper Dunagan Professorship IV 11, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , TOTAL ACADEMIC SUPPORT 1,036, ,40 126, , ,998, INSTITUTIONAL SUPPORT University Of Texas Of The Permian Basin Support For Cardozier Endowment Sean Kevin Roden M.D. Group Study Room Endowment The Mac Boring, Jr. Room Endowment The Parker Ranch House Cooper Lecture Hall Endowment Wagner Noel Performing Arts Center Endowment Terry! Anderson Endowed Professorship Fund in Education 2,546, , , , , , ,594, ,00 10,00 174, , , , , ,277, ,721, , , , , , ,882, ,00

31 The University of Texas of the Permian Basin Schedule B-6a Schedule of Changes in Net Position Endowment and Similar Funds - Other Than State As of August 31, 2017 TOTAL INSTITUTIONAL SUPPORT Net Increase (Decrease) in Fair lnvesbnent Net other Net Position Gift Additions to lnvesbnent Value of Income (Realized Additions/ Net Position September 1, 2016 Endowments Income lnvesbnents Gains and Losses) Deductions August 31, ,839, ,00 1,500, ,359, SCHOLARSHIPS AND FELLOWSHIPS A.P.I. Sour Crude Scholarship Warren Burnett Endowed Scholarship Kathlyn And Conrad Dunagan Scholarship Fund Nojem Libson Endowed Scholarship The Ellen And Bill Noel Scholarship Fund U. T. Permian Basin Merit Awards Davidson Family Charitable Foundation Scholarship Bank One Of Odessa Endowed Presidential Scholarship Southwest Bank Endowed Presidential Scholarship Southwest Bank Endowed Scholarship Accounting Alumni Association Scholarship Endowment Abell-Hanger Endowed Scholarship Fund The Odessa American Endowed Scholarship Fund Jamie And Carol Winkel Endowed Scholarship Utpb Alumni Association Endowed Scholarship Fund The James And Marylin Morris Endowed Scholarship Bob Barnes Companies Endowed Scholarship Junior League Of Odessa/American Association Of Ted G. Roden Endowed Presidential Scholarship In The Brian Craig Memorial Endowed Scholarship For V. R. Cardozier Endowed Presidential Scholarship The Southwest Coca-Cola Endowed Scholarship Meadows Foundation Endowed Scholarship Fund Julia Higgins Carskadon Early Childhood Education Clara Hazel Freel Scholarship Endowment Fund Kent Oil Endowed Scholarship William B. Deaderick/Q.B. Mcmahon Endowed Scholarship William Bartlett Memorial Endowed Scholarship Wanda And Angela Jones Endowed Scholarship In B. H. Amstead Endowed Presidential Scholarship Ray And Lorraine Perryman Endowed Presidential Clay And Louise Wood Endowed Presidential Scholarship Edwin A. Kurtz Endowed Presidential Scholarship James R. Buzz And Betsy Triplett-Hurt Endowed Pre-Health Professions Endowed Scholarship The Donivan R. And Rita D. Williams Endowed Angel And Mac Boring Endowed Presidential Scholarship Warren Equipment Companies Endowed Presidential Southwestern Bell Endowed Presidential Scholarship In Bank One, Odessa And Midland Endowed Scholarship 50, , , , ,098, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,311, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , <O

32 The University of Texas of the Permian Basin Schedule B-6a Schedule of Changes in Net Position Endowment and Similar Funds - Other Than State As of August 31, 2017 I\.) Herbert Graham Endowed Presidential Scholarship Sjoerd Steunebrink Scholarship Endowment Lissa And Cy Wagner Endowed Scholarship Western National Bank Endowed Presidential Kerry And Clarence Scharbauer Endowed Presidential Odessa Board Of Realtors Endowed Scholarship Doris And John Mason Endowed Presidential Scholarship Bank Of America Endowed Scholarship The Atmos Energy Endowed Scholarship The Cooper Family Endowed Presidential Scholarship The Jack And Don Wood Endowed Presidential Scholarship The Diana Camille Kerr Memorial Endowed Scholarship The Barnie And Lacretia Jones Endowed Presidential Rgk Foundation Endowed Presidential Scholarship In Mr. And Mrs. Louis Rochester Endowed Scholarship In Ben C. Florey Memorial Endowed Scholarship Flynn Family Endowed Presidential Scholarship In The Charles A. And Linda E. Sorber Endowed Ben Mancha Endowed Presidential Scholarship The M.S. And Meek Lane Doss Endowed Scholarship The Mamie Strieber Shepperd Endowed Scholarship The Ace And Dianna Pickens Endowment Fund For The Greater Texas Foundation Endowed Scholarship The Bessie Lou Park.er Doelling Endowed Scholarship The Todd Allen Treadway Endowed Psychology The Clarence Kron Endowed Education Scholarship The Dan Hemphill Memorial Endowed Scholarship George W. Hillger, Jr. Endowment Fund The Gary Watkins Memorial Endowed Scholarship School Of Business Alumni Scholarship The Linda S. Felts Endowed Scholarship The Canda Cruson Sewell Endowed Scholarship The Warren Gardner Memorial Endowed Scholarship Odessa American Endowed Scholarship In Business And The Bradley W. And Kara Bunn Endowed Scholarship In The Ronald R. Sewell Endowed Scholarship Cleon Dowlen Memorial Endowed Scholarship In The Albert W. Dale, Jr. Memorial Endowed Scholarship The Ann Pinnell Penny Thompson And Martin H. Thompson Judith And James Davenport Endowed Scholarship Odessa East Rotary Club Endowed Scholarship Utpb Falcon Booster Club Men'S Basketball Endowed J. Edwin Becht Endowed Award In Business A.G. and Melba Bassett Endowed Scholarship Net Increase (Decrease) in Fair lnvesbnent Net Other Net Position Gift Additions to lnvesbnent Value of Income (Realized Additions/ Net Position September 1, 2016 Endowments Income Investments Gains and Losses) Deductions August 31, , , , , , , , , , , , , , , , , , , , , ,58 469, , , , , , , , ,935, , , , , , , , , , , , , , , , , ,00 1, , ,10 6, , , , , , , , , , ,75 11, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,066, , , , , , , , , , , , , , , , ,928.98

33 The University of Texas of the Permian Basin Schedule B-6a Schedule of Changes in Net Position Endowment and Similar Funds - Other Than State As of August 31, Zelda Dee Martin Endowed Scholarship Fund Pam Price Endowed Art Scholarship Munro Shintani Memorial Endowed Scholarship in Special Education Robin and Mark Thomas Endowed Scholarship UTPB Alumni Legacy Endowed Scholarship La Juan Miller Men's Basketball Endowed Scholarship The William C. and Charlotte Lewis Endowed Scholarship The Amber Zant Bice Memorial Endowed Scholarship Kay Bivens Endowed Scholarship Gatlin Brothers Endowed Scholarship Cress & Pauline Steele Endowed Scholarship Kevin & Marcia Slater Business Endowment Cathryn Smith Endowed Scholarship in Social Work Tejani Family Scholarship Green Family Endowed Scholarship Mark Nicholas Endowed Presidential Scholarship in Engineering Arlen & Betty Edgar Endowed Fellowship in Engineering Patti Hardison Endowed Scholarship Cassidy Family Endowed Scholarship Ace and Bertha Doran Endowed Scholarship Robert Sanchez Memorial Endowed Scholarship Petroleum Accountants Society of the Permian Basin Scholarship John Doran, M.D., FAC.P. Graduate Research Fellowship Endowment SPEE Jack Ladd Memorial Scholarship in Petroleum Engineering Dr J. Tillapaugh/Paula Henry Endowed Graduate Scholarship in History Or. Diana Hinton/Paula Henry Endowed Graduate Scholarship in History Dr. Diana Hinton/Paula Henry Endowed Graduate Scholarship in History Buddy West Memorial Endowed Scholarship Dr. Edwin and Suzanne Rathbun Endowed Scholarship in Nursing Diane Cuevas Endowed Scholarship Shirley Carrigan Vocal Studies Endowment Marion Luper, Jr. Endowed Scholarship in Vocal Studies James "Buddy" Davidson Charitable Foundation Endowed Nursing Scholarship ~ Vickie Gomez Endowed Scholarship Mims Endowed Scholarship Mike Todd Memorial Endowed Music Scholarship Permian Basin Medical Community Endowed Nursing Scholarship Gladys Simpson Pan American Round Table Memorial Scholarship Endowment William and Valerie Fannin Endowed Scholarship Ors. W. David ad Denise Waters Endowed Presidential Scholarship TOTAL SCHOLARSHIPS AND FELLOWSHIPS Net Increase (Decrease) in Fair lnvesbnent Net Other Net Position Gift Additions to lnvesbnent Value of Income (Realized Additions/ Net Position September 1, 2016 Endowments Income lnvesbnents Gains and Losses) Deductions August 31, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,124, , ,90 1, , , , ,50 1,00 10,00 50,00 471, , , , , , , , , , , , , (187.30) 2, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,00 15,580, TOTAL TRUE ENDOWMENT FUNDS 42,422, , ,919, , , ,908, N _,,,