UNAUDITED FINANCIAL REPORT TEXAS A&M UNIVERSITY AT GALVESTON FOR THE YEAR ENDED AUGUST 31, 2012

Transcription

1 FINANCIAL REPORT OF FOR THE YEAR ENDED AUGUST 31, 2012 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED AUGUST 31, 2011 DR. R. BOWEN LOFTIN, PRESIDENT, TEXAS A&M UNIVERSITY ROBERT SMITH III, PRESIDENT AND CEO, B.J. CRAIN, VICE PRESIDENT FOR FINANCE & CHIEF FINANCIAL OFFICER, TEXAS A&M UNIVERSITY GALVESTON, TEXAS

2 CURRENT YEAR STUDENT ENROLLMENT DATA TYPE OF STUDENT Texas Resident Out-of-State Foreign Total Students NUMBER OF STUDENTS BY SEMESTER FALL 2011 FALL ,741 1, ,035 2,015 FISCAL YEAR HISTORICAL STUDENT ENROLLMENT DATA (Fall Semester) HEADCOUNT 1,363 1,366 1,556 1,620 1,615 1,661 1,553 1,614 1,612 1,791 1,868 2,035 2,015 SEMESTER CREDIT HOURS 19,366 18,991 21,306 22,416 22,447 23,097 21,406 22,344 21,959 24,824 25,900 27,561 27, i

3 UNAUDITED Index Template Provided by System INDEX EXHIBITS Agency#-Page# REFERENCE Ill Balance Sheet IV Statement of Revenues, Expenses, and Changes in Net Assets Schedule ofnacubo Function to Natural Classification Matrix Statement of Cash Flows IV- I v SCHEDULES I -A Schedule of Expenditures of Federal Awards I- 8 Schedule of State Grant Pass Throughs Frorn!To State Agencies Schedule of Cash & Cash Equivalents Note 2 - Capital Assets THREE N ii

4 EXIDBIT III BALANCE SHEET FOR THE YEAR ENDED AUGUST 31, 2012 CURRENT YEAR TOTAL PRIOR YEAR TOTAL Assets and Deferred Outflows Current Assets: Cash & Cash Equivalents [Schedule Three] 12,849, ,632, Securities Lending Collateral Investments Derivative Instruments Hedging Derivative Instruments Deferred Outflow of Resources Restricted: Cash & Cash Equivalents [Schedule Three] 409, , Investments Legislative Appropriations 51, , Receivables, Net: Federal 775, , Other Intergovernmental Interest and Dividends Gifts, Pledges and Donations 1,499, Self-Insured Health and Dental Student 514, , Investment Trades Accounts 540, Other 673, Due From Other Agencies 155, , Due From Other Members 1,993, ,065, Due From Other Funds 1,760, ,448, Consumable Inventories Merchandise Inventories 441, , Deferred Charges Loans and Contracts 157, , Interfund Receivable Other Current Assets 971, , Total Current Assets 22,119, ,777, Non-Current Assets and Deferred Outflows: Restricted: Cash & Cash Equivalents [Schedule Three] Assets Held By System Offices 3,357, ,096, Investments Loans, Contracts and Other Pledges Receivable Legislative Appropriations Loans and Contracts 370, , Assets Held By System Offices 24,658, ,423, Investments Derivative Instruments Hedging Derivative Instruments Deferred Outflow of Resources Interfund Receivable Capital Assets, Non-Depreciable [Note 2] Land and Land Improvements 3,061, ,061, Construction In Progress 6,419, ,865, Other Tangible Capital Assets 13, , Land Use Rights Other Intangible Capital Assets Capital Assets, Depreciable [Note 2) Buildings and Building Improvements I 00,198, ,839, Infrastructure 7,295, ,276, Facilities and Other Improvements 3,239, ,175, Furniture and Equipment 8,070, ,177, Vehicles, Boats, and Aircraft 2,099, ,853, Other Capital Assets 1,542, ,531, Intangible Capital Assets, Amortized [Note 2) Land Use Rights Computer Software 327, , Other Intangible Capital Assets Accumulated Depreciation/ Amortization (52,869,246.15) (47,971,100.37) Assets Held In Trust Other Non-Current Assets Total Non-Current Assets and Deferred Outflows 107,786, ,997, Total Assets and Deferred Outflows 129,906, ,775,

5 EXHIBIT III TEXAS A&MUNIVERSITY AT GALVESTON BALANCE SHEET FOR THE YEAR ENDED AUGUST 31, 2012 CURRENT YEAR TOTAL PRIOR YEAR TOTAL Liabilities and Deferred Inflows Current Liabilities: Payables: Accounts 1,250, I,463, Payroll 1,411, ,503, Investment Trades Self-Insured Health and Dental Other 342, , Interfund Payable Due to Other Agencies Due to Other Funds 1,760, ,448, Due to Other Members 892, Funds Held for Investment Hedging Derivative Instruments Deferred Inflow of Resources Unearned Revenue Employees' Compensable Leave 9,611, , ,887, , Claims and Judgments Notes and Loans Payable Bonds Payable Capital Lease Obligations 18, Assets Liabilities Payable From Restricted Funds Held for Others 148, , Obligations/Securities Lending Other Current Liabilities I, 180, , Total Current Liabilities 15,773, ,773, Non-Current Liabilities and Deferred Inflows Interfund Payable Employees' Compensable Leave 1,119, ,034, Other Post Employment Benefits Claims and Judgments Notes and Loans Payable Bonds Payable Hedging Derivative Instruments Deferred Inflow of Resources Assets Held In Trust Liabilities Payable From Restricted Assets Funds Held for Others Capital Lease Obligations Other Non-Current Liabilities 62, Total Non-Current Liabilities and Deferred Inflows 1,181, ,034, Total Liabilities and Deferred Inflows 16,954, ,807, Net Assets Debt Service Invested In Capital Assets, Net of Debt Restricted For: 79,399, ,150, Capital Projects 362, ,656, Education 1,865, ,991, Endowment and Permanent Funds: Nonexpendable Expendable 1,884, , ,812, , Unrestricted 29,165, ,079, Total Net Assets [Exhibit IV] 112,951, ,967, Total Liabilities & Deferred Inflows and Net Assets 129,906, ,775,

6 UNAUDITED Net Assets Title Changed to Net Position FY13 Published Report No Manual Entries Queries IV-Fund EXHIBIT IV POSITION STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS FOR THE YEAR ENDED AUGUST 31,2012 PRIOR YEAR TOTAL CURRENT YEAR TOTAL Operating Revenues Sales of Goods and Services Tuition and Fees-Pledged Discounts and Allowances Net Tuition and Fees- Non-Pledged Net Professional Fees Net Auxiliary Enterprises Net Other Sales of Goods and Services Discounts and Allowances-Sales I7,599, (2,359,683.50) 7,897, I,623, (791,398.50) Total Sales of Goods and Services Premium Revenue Interest Revenue Net Increase [Decrease] In Fair Value Federal Revenue - Operating Federal Pass Through Revenue State Grant Revenue State Pass Through Revenue Other Grants and Contracts - Operating Other Operating Revenue Total Operating Revenues Operating Expenses Instruction Research Public Service Hospitals and Clinics Academic Support Student Services Institutional Support Operation & Maintenance of Plant Scholarships & Fellowships Auxiliary Depreciation/Amortization 23,969, ,125, (2,745,493.31) 7,287, ,730, (851,892.53) 21,546, , , ,206, , , , , , ,886, , , ,137, , ,091, ,353, I 1,798, ,492, ,217, ,220, ,421, ,212, ,187, ,221, ,932, ,615, ,437, ,315, ,822, N-2 50,040, ,838, Total Operating Income [Loss] (20,949,386.68) (23,485, I 66.57) 18,001, I,985, ,261, ,130, , Nonoperating Revenues [Expenses] Legislative Revenue Federal Revenue Non-Operating Federal Pass Through Non-Operating State Pass Through Non-Operating Gifts Land Income Investment Income Loan Premium/Fees On Securities Lending Investing Activities Expense Interest Expense and Fiscal Charges Borrower Rebates and Agent Fees Gain [Loss] On Sale or Disposal of Capital Assets Net Increase [Decrease] In Fair Value Settlement of Claims Other Nonoperating Revenues Other Nonoperating [Expenses] 2,552,503.8 I 4, , , , , (55,057.36) (1,066.49) (75,921.91) 18, ,Il , ,690, , (1,226,419.58) 44, (91 8, I 89.88) Total Nonoperating Revenues [Expenses] 22,781, Income [Loss] Before Other Revenues and Transfers 1,832, Schedule 1B 2,045, ,526,6 I6.14 5,646, ,857, ,951, ,431, ,524, Total Operating Expenses [Schedule IV- I] Exhibit V Schedule 1A 22,494,957.II (990,209.46) Schedule 1A

7 EXIDBITIV STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS FOR THE YEAR ENDED AUGUST 31,2012 CURRENT YEAR TOTAL PRIOR YEAR TOTAL Other Revenues and Transfers Capital Contributions 60, , Capital Appropriations [Higher Education Fund] Additions to Permanent and Term Endowments 110, , Special Items Extraordinary Items Transfers In Transfers From Other State Agencies Mandatory Transfers From Other Members Nonmandatory Transfers From Other Members 2,837, , 784, Nonmandatory Transfers From Members/Agencies-Cap Assets 4,911, , Transfers Out Transfers to Other State Agencies (204,006.67) ( 190,401.60) Mandatory Transfers to Other Members (481,164.38) (464,750.34) Nonmandatory Transfers to Other Members (750.00) (2,001,392.52) Nonmandatory Transfers to Members/Agencies- Cap Assets (13,509.85) Legislative Transfers - In Legislative Transfers - Out (3,834,365.00) (4,317,564.00) Legislative Appropriations Lapsed (184,223.49) Total Other Revenues and Transfers 3,399, (2,080,976.92) Change In Net Assets 5,231, (3,071,186.38) Beginning Net Assets, September I, 2011 and ,967, ,052, Restatement (247,673.70) 4,985, Beginning Net Assets, September 1, 20 II and 20 I 0 Restated 107,719, lll,038, Net Assets, August 31, 2012 and ,951, ,967,

8 SCHEDULE IV -1 NACUBO FUNCTION TO NATURAL CLASSIFICATION MATRIX FOR THE YEAR ENDED AUGUST 31,2012 HOSPITALS& INSTRUCTION RESEARCH PUBLIC SERVICE CLINICS ACADEMIC SUPPORT Natural Classification Cost of Goods Sold Salaries & Wages Payroll Related Costs Professional Fees & Services Travel Materials & Supplies Communication & Utilities Repairs & Maintenance Rentals & Leases Printing & Reproduction Federal Pass-Through State Pass-Through Depreciation & Amortization Bad Debt Expense Interest Scholarships Claims & Losses Net Change In OPEB Obligation Other Operating Expenses 8,430, ,047, , ,048, , , , , I 16, , , , , , , , , , , , , , , , , , , I 12, , , , , , , , , , , , , , , Total Operating Expenses 11,798, ,492, ,217, ,187,

9 NACUBO FUNCTION STUDENT INSTITUTIONAL SCHOLARSHIPS & DEPRECIATION & SERVICES SUPPORT FELLOWSHIPS AUXILIARY AMORTIZATION TOTAL PRIOR YEAR 1,483, ,483, ,668, ,561, ,117, ,323, , ,693, ,968, ,334, , , , , , ,787, ,830, , ,109, ,472, , ,089, ,693, , , , , , , , , , , , , ,017, ,641, , , ,761, , ,507, ,350, , , , , ,135, , , , , , ,118, ,193, , , , , , , ,822, ,822, ,524, (849.60) (849.60) (196.40) , , , ,924, ,046, ,561, , , , , , ,166, ,977, ,221, ,932, ,615, ,437, ,315, ,822, ,040, ,838, [Exhibit IV]

10 EXHIBITV STATEMENT OF CASH FLOWS FOR THE YEAR ENDED AUGUST 31, 2012 CURRENT YEAR TOTAL PRJ OR YEAR TOTAL Cash Flows From Operating Activities Proceeds Received From Tuition and Fees 15,733, ,356, Proceeds Received From Customers 1,911, ,754, Proceeds From Sponsored Programs 4,643, ,743, Proceeds From Auxiliary Enterprises 7,757, ,732, Proceeds From Loan Programs 22, , Proceeds From Other Revenues 520, , Payments to Suppliers for Goods and Services (17,747,955.61) (17,951,611.16) Payments to Employees - Salaries (20,953,313.82) (20,299,633.96) Payments to Employees - Benefits ( 4,832, ) (4,775,049.66) Payments for Loans Provided (10,999.71) ( 44,978.91) Payments for Other Expenses (2,179,258.35) (1,948,846.05) Net Cash Provided [Used] By Operating Activities (15,134,173.78) (15,911,667.48) Cash Flows From Noncapita1 Financing Activities Proceeds From State Appropriations 18,136, ,887, Proceeds From Gifts 1,052, , Proceeds From Endowments 110, , Proceeds - Transfers From Other Funds Proceeds From Other Grant Revenue I,985, ,318,85120 Proceeds From Contributed Capital Proceeds From Other Revenues 157, , Payments oflnterest Payments - Transfers to Other Funds (204,006.67) (190,401.60) Payments for Grant Disbursements Payments for Other Uses (167,505.71) (102,761.56) Other Noncapital Transfers Fromffo System 190, , Transfers Between Fund Groups Net Cash Provided [Used] By Noncapital Financing Activities 21,260, , I 03, Cash Flows From Capital and Related Financing Activities Proceeds From Sale of Capital Assets 27, , Proceeds From Capital Debt Issuance Proceeds From State Grants and Contracts Proceeds From Federal Grants and Contracts Proceeds From Gifts Proceeds From Interfund Loans Proceeds From Other Financing Activities Payments for Additions to Capital Assets (3,486,050.01) (4,524,071.02) Payments of Principal On Debt Payments for Capital Leases Payments for Interest On Capital Related Debt Payments for Interfund Loans Payments of Other Costs On Debt Issuance Transfer of Capital Debt Proceeds From System [Nonmandatory] 5,769, ,356, Intrasystem Transfers for Capital Debt [Mandatory] (4,315,529.38) (4,782,314.34) Intrasystem Transfers for Construction Proceeds [Non-Mand] 1,265, , Net Cash Provided [Used] By Capital and Related Financing Act. (738,733.79) (6,836,366.07) Cash Flows From Investing Activities Proceeds From Sales and Maturities of Investments Sales and Purchases oflnvestments Held By System (1,528,185.04) (5,080,461.66) Proceeds From Interest and Investment Income 474, , Payments to Acquire Investments Net Cash Provided [Used] By Investing Activities (1,054,123.43) (4,632,025.30) Increase [Decrease] In Cash and Cash Equivalents 4,333, (3,276,982.53) Cash and Cash Equivalents, September I, 2011 and ,924, ,201, Restatement Restated Beginning Cash and Cash Equivalents 8,924, ,201, Cash and Cash Equivalents, August 31,2012 and 2011 [Sch Three] 13,258, ,924,

11 EXHIBITV STATEMENT OF CASH FLOWS FOR THE YEAR ENDED AUGUST 31,2012 CURRENT YEAR TOTAL PRIOR YEAR TOTAL Reconciliation of Operating Income [Loss] to Net Cash Provided [Used] By Operating Activities Operating Income [Loss] (20,949,386.68) (23,485, ) Adjustments to Reconcile Operating Income [Loss] to Net Cash Provided [Used] By Operating Activities Depreciation and Amortization 4,822, ,524, Bad Debt Expense 9, , Operating Income and Expense Classification Differences Changes In Assets and Liabilities: Accounts Receivable, Net (282,342.0 I) 76, Due From Other Agencies/Funds (20, ) 63, Due From System Members (210,270.70) 1,240, Inventory 17, (25,379.40) Deferred Charges Prepaid Expenses (165,810.86) (152,843.25) Loans and Contracts (4,788.58) (37,718.34) Other Assets (69.64) Payables (359,241.49) 1,095, Due to Other Agencies/Funds (918.82) Due to System Members (183,080.35) Unearned Revenue 1,724, , Deposits 222, , Compensated Absence Liability 62, (35,151.49) Other Post Employment Benefits Liability Selflnsured Accrued Liability Other Liabilities Total Adjustments 5,815, ,573, Net Cash Provided [Used] By Operating Activities (15,134,173.78) (15,91 1,667.48) Non-Cash Transactions Nonmonetary Gifts, Including Capital Assets Net Increase [Decrease] In Fair Value oflnvestments 451, ,690, Gain/Loss On Sale or Disposal of Capital Assets (9,062.42) (I 78.65) Refunding of Long Term Debt Amortization of Bond Premiums and Discounts Other 4,911, ,

12 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 Pass-through From NSE Name/ Agy/ Agencies or Non-State Federal Grantor/ Pass-through Grantor/ CFDA Identifying Univ Universities Entities Program Title Number Number No Amount Amount U.S. Department of Transportation Direct Programs: U.S. Merchant Marine Academy Totals - U.S. Department of Transportation U.S. Department of Homeland Security Pass-Through From: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Pass-Through From: Texas A&M University System , Totals - U.S. Department of Homeland Security 416, Research & Development Cluster U.S. Department of Commerce Unallied Science Program University of Maryland/ CA , Pass-Through From: Sea Grant Support Pass-Through From: Texas A&M University , Coastal Zone Management Administration Awards Pass-Through From: General Land Office , Totals - U.S. Department of Commerce 311, , U.S. Department of Defense Air Force Defense Research Sciences Program Pass-Through From: Texas A&M AgriLife Research 556 1, Totals - U.S. Department of Defense 1, U.S. Department of the Interior Direct Programs: U.S. Department of the Interior H50002A271 U.S. Department of the Interior J Pass-Through From: State Wildlife Grants Pass-Through From: Parks and Wildlife Department , Totals - U.S. Department of the Interior 10, U.S. Department of Transportation Public Transportation Research Pass-Through From: Texas A&M Transportation Institute , Totals - U.S. Department of Transportation 42, National Aeronautics and Space Administration National Aeronautics and Space Administration University of South Florida/ B 9, Totals - National Aeronautics and Space Administration 9, Environmental Protection Agency Pass-Through From: National Estuary Program Pass-Through From: Texas Commission on Environmental Quality , Nonpoint Source Implementation Grants Pass-Through From:

13 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 Pass-through To Direct Total Pass Agy/ Agencies or Non-State Total Pass Program Through From Univ Universities Entities Through To and Amount Direct Program No. Amount Amount Expenditures Expenditures 648, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

14 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 Pass-through From NSE Name/ Agy/ Agencies or Non-State Federal Grantor/ Pass-through Grantor/ CFDA Identifying Univ Universities Entities Program Title Number Number No Amount Amount Texas A&M AgriLife Extension Service , Totals - Environmental Protection Agency 73, U.S. Department of Energy Direct Programs: U.S. Department of Energy U.S. Department of Energy Totals - U.S. Department of Energy Student Financial Assistance Cluster U.S. Department of Education Direct Programs: Federal Supplemental Educational Opportunity Grants Federal Work-Study Program Federal Perkins Loan Program_Federal Capital Contributions Federal Pell Grant Program Federal Direct Student Loans Academic Competitiveness Grants Totals - U.S. Department of Education Total Expenditures of Federal Awards 856, ,

15 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 Pass-through To Direct Total Pass Agy/ Agencies or Non-State Total Pass Program Through From Univ Universities Entities Through To and Amount Direct Program No. Amount Amount Expenditures Expenditures 73, , , , , , , , , , , , , , , , , , , , , , , , , , , ,985, ,985, ,985, ,985, ,940, ,940, ,940, ,940, (723.00) (723.00) (723.00) (723.00) 11,053, ,053, ,053, ,053, ,073, ,989, ,989, ,989,

16 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 NOTE 1: NONMONETARY ASSISTANCE Not Applicable NOTE 2: RECONCILIATION OF REVENUES AND RECEIPTS TO EXPENDITURES AND DISBURSEMENTS (PASS THROUGHS) FEDERAL REVENUES: Federal Grants and Contracts - Operating 2,206, Federal Grants and Contracts - Non-operating 1,985, Federal Pass-Through Grants (State Agencies/Universities and TAMUS Members)-Operating 856, Federal Pass-Through Grants (State Agencies/Universities and TAMUS Members)-Non-Operating LESS Reconciling Items: Donation of Federal Surplus Property - Total Federal Pass-Through Grants 856, Federal Appropriations - Total Federal Revenue per Exhibit IV 5,047, Reconciling Items: ADD: Non-Monetary Assistance [NOTE 1]: Donation of Federal Surplus Property New Loans Processed [NOTE 3]: Federal Family Education Loans Federal Perkins Loan Program 76, Federal Direct Student Loans 8,940, Health Education Assistance Loans Health Professions Student Loans, Including Primary Care Loans / Loans for Disadvantaged Students DEDUCT: Federal Grants to/from TAMRF (1,060,631.17) COBRA 65% Subsidy (CFDA Number ) - Federal Contract Revenues - Vendor Relationship & Fixed Price (14,185.27) Total Pass Throughs and Expenditures per Federal Schedule 12,989,

17 SCHEDULE 1 - A SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended August 31, 2012 NOTE 3: STUDENT LOANS PROCESSED AND ADMINISTRATIVE COSTS RECOVERED LOANS OR LOAN ADMINISTRATIVE GUARANTEES ENDING BALANCE FEDERAL GRANT/PASS THROUGH CFDA NEW LOANS COSTS OUTSTANDING OF PREVIOUS YEARS GRANT OR PROGRAM TITLE NUMBER PROCESSED RECOVERED AT YEAR-END LOANS U. S. Department of Education Federal Family Education Loans Federal Perkins Loan Program , , , Federal Direct Student Loans ,940, Total, U. S. Department of Education 9,017, , , U.S. Department of Health and Human Services Health Education Assistance Loans Health Professions Student Loans, including Primary Care Loans/Loans for Disadvantaged Students (HPSL) Total, U. S. Department of Health and Human Services Total Student Loans Processed and Administrative 9,017, , , Costs Recovered NOTE 4: DEPOSITORY LIBRARIES FOR GOVERNMENT PUBLICATIONS Not Applicable NOTE 5: UNEMPLOYMENT INSURANCE FUNDS Not Applicable NOTE 6: REBATES FROM THE SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR WOMEN, INFANT AND CHILDREN (WIC) Not Applicable NOTE 7: FEDERAL DEFERRED REVENUE BEGINNING ENDING CFDA BALANCE NET BALANCE PROGRAM NAME NUMBER 9/1/2011 CHANGE 8/31/2012 U. S. Merchant Marine Academy , , ,073, Deferred Revenue Explanation: 503, , ,073, The deferred revenue consists of funds received but not expended from annual subsidy to support the on-going operations of the Texas Maritime Academy, one of six seacoast maritime academies in the United States. In FY 2012, additional funds were awarded to TAMU Galveston from MARAD which resulted from the sale of vessels from the National Defense Reserve Fleet. NOTE 8: SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM Not Applicable

18 SCHEDULE 1-B SCHEDULE OF STATE GRANT PASS-THROUGHS FROM/TO STATE AGENCIES For the Year Ended August 31, 2012 Pass-through From: Program Name Agency Name Grant ID Agy # Amount Seafood Safety Program Department of State Health Services 537 9, Biofuels From Algae Texas AgriLife Research , WSC - Research Texas Water Development Board , Fate of dioxin in the Houston Ship Channel and Elevation of Natural Remediation Texas Commission on Environmental Quality , Galveston Bay Restoration Project Texas Commission on Environmental Quality , Need Based Scholarships Texas A&M University System 710 8, Joint Admission Medical Program (JAMP) University of Texas System 720 9, TEXAS Grant Program Texas Higher Education Coordinating Board , Advanced Research Program Texas Higher Education Coordinating Board 781 (88.60) Engineering Recruitment Program Texas Higher Education Coordinating Board 781 (5,454.43) College Work Study Program Texas Higher Education Coordinating Board 781 9, Top 10% Scholarships Texas Higher Education Coordinating Board , Early High School Program HB Texas Higher Education Coordinating Board 781 7, Total Pass-Through From State Agencies 660, (Exhibit IV) Pass-through To:

19 SCHEDULE 1-B SCHEDULE OF STATE GRANT PASS-THROUGHS FROM/TO STATE AGENCIES For the Year Ended August 31, 2012 Program Name Agency Name Grant ID Agy # Amount - Total Pass-Through To State Agencies - (Schedule IV-1)

20 SCHEDULE THREE SCHEDULE OF CASH & CASH EQUIVALENTS FOR THE YEAR ENDED AUGUST 31, 2012 Cash & Cash Equivalents Current Assets Cash On Hand: Cashiers Account Petty Cash Department Working Fund Total Cash On Hand CURRENT YEAR TOTAL 2, , Cash In State Treasury: Fund 0275 Total Cash In State Treasury Reimbursements Due From State Treasury Assets Held By System Offices-Current Total Current Cash and Cash Equivalents [Exhibit III] 5,745, ,745, , ,066, ,849, Restricted: Cash On Hand: Cash In Bank 75, Cash In State Treasury: Assets Held By System Offices-Current Total Restricted Cash and Cash Equivalents [Exhibit Ill] Total Cash & Cash Equivalents [Exhibit V] 333, , ,258,

21 SCHEDULE N-2 NOTE 2- CAPITAL ASSETS FOR THEYEARENDEDAUGUST31, 2012 BALANCE ADJUSTMENTS COMPLETED CIP Non-Depreciable/Non-Amortizable Assets Land and Land Improvements 3,061, Construction In Progress 3,865, (4,652,745.87) Other Tangible Capital Assets 13, Total Non-Depreciable/Non-Amortizable Assets 6,940, (4,652,745.87) Depreciable Assets Buildings 96,839, ,358, Infrastructure 7,276, , Facilities and Other Improvements 3,175, , Furniture and Equipment 7,177, , Vehicles, Boats and Aircraft 1,853, Other Capital Assets 1,531, Total Depreciable Assets at Historical Cost 117,852, ,652, Less Accumulated Depreciation For: Buildings (32,272, ) (238,389.91) Infrastructure (5,361,408.07) (1,214.71) Facilities and Other Improvements (2,627,989.77) (7,992.75) Furniture and Equipment (5,090,752.07) (1,172.47) Vehicles, Boats and Aircraft (1,233,925.44) Other Capital Assets (I,089,914.02) 1, Total Accumulated Depreciation (47,676,442.56) (247,673.70) Depreciable Assets, Net 70,176, ,405, Amortizable Assets - Intangible Computer Software 327, Total Intangible Assets at Historical Cost 327, Less Accumulated Amortization For: Computer Software (294,657.81) Total Accumulated Amortization (294,657.81) Amortizable Assets-Net 33, Capital Assets, Net 77,150, (247,673.70)

22 INC-INTERAGENCY DEC-INTERAGENCY BALANCE TRANSACTIONS TRANSACTIONS ADDITIONS DELETIONS ,061, ,652, ,554, ,419, , ,652, ,554, ,494, ,198, (220,693.99) 7,295, (43,750.40) 3,239, , , (1,309,931.96) 8,070, , , (89,688.00) 2,099, , (3,899.94) 1,542, , I,072, (1,667,964.29) 122,445, (3,861,888.72) (36,372,731.82) (149,820.36) (5,512,443.14) (52,642.92) (2,688,625.44) (241,041.95) ( 487 '782.47) 365, (5,454,806.07) (36,250.28) (191,575.97) 80, (1,381,126.11) (61,821.72) 2, (1,147,835.80) (277,292.23) ( 4,805,532.16) 449, (52,557,568.38) 258, (3,733,267.06) (I,218,592.02) 69,888, , , (17, ) (311,677.77) (17,019.96) (311,677.77) (17,019.96) 16, ,911, (1,196,137.12) (I,218,592.02) 79,399,

23 SCHEDULE III-FUND BALANCE SHEET BY FUND GROUP FOR THE YEAR ENDED AUGUST 31,2012 CURRENT FUNDS UNRESTRICTED FUNCTIONAL LOAN AND GENERAL DESIGNATED AUXJLIARY TOTAL RESTRICTED FUNDS Assets and Deferred Outflows s s Current Assets: Cash & Cash Equivalents [Sch Three-A] 6,636, ,736, ,476, ,849, Securities Lending CoUateral Investments Derivative Instruments Hedging Derivative lustruments Deferred Outflow of Resources Restricted: Cash & Cash Equivalents [Sch Three-A] 326, , Investments Legislative Appropriations 51, , Receivables, Net: Federal 286, Other Intergovernmental Interest and Dividends Gifts, Pledges and Donations Self-Insured Health and Dental Student 288, , , , Investment Trades Accounts 74, , , , , Other Due From Other Agencies 155, Due From Other Members 1,125, ,125, , Due From Other Funds 1,760, ,760, Consumable Inventories Merchandise Inventories 10, , , Deferred Charges Loans and Contracts 120, lnterfund Receivables Other Current Assets 586, , , Total Current Assets 7,049, s 8,345, s 2,161, s 17,556, s 1,715, , Non-Current Assets and Deferred Outflows: s s Restricted: Cash & Cash Equivalents [Sch Three-A] Assets Held By System Offices 1,172, , Investments Loans, Contracts and Other Pledges Receivable Legislative Appropriations Loans and Contracts 370, Assets Held By System Offices 2,095, ,021, ,303, ,420, Investments Derivative Instruments Hedging Derivative Instruments Deferred Outflow of Resources lnterfund Receivable Capital Assets, Non-Depreciable [Note 2] Land and Land Improvements Construction In Progress Other Tangible Capital Assets Land Use Rights Other Intangible Capital Assets Capital Assets, Depreciable [Note 2] Buildings and Building Improvements Infrastructure Facilities and Other Improvements Furniture and Equipment Vehicles, Boats, and Aircraft Other Capital Assets Intangible Capital Assets,Amortized [Note 2] Land Use Rights Computer Software Other Intangible Capital Assets Accumulated Depreciation/Amortization Assets Held In Trust Other Non-Current Assets Total Non-Current Assets and Deferred Outflows 2,095, ,021, ,303, ,420, s 1,172, , Total Assets and Deferred Outflows s 9,145, ,366, s 7,464, s 41,976, ,888, ,

24 ENDOWMENT AND SIMILAR FUNDS ANNUITY AND LIFE INCOME FUNDS UNEXPENDED PLANT FUNDS RENEWALS AND RETIREMENT OF REPLACEMENTS INDEBTEDNESS TOTALS (MEMORANDUM ONLY) INVESTMENT IN PLANT AGENCY FUNDS CURRENT YEAR PRJ OR YEAR s I2,849,I ,632, , , I,I , ,483.I8 I85, , I,499, I,499, I8, I4, , I55, I,993, I,760, I, , ,258.7I 135, ,065, ,448, , ,5I9.56 I57,I60.20 I94,I I, ,8I5.70 2,118, , ,II9, I,777,5I4.53 2,I58,899.I8 3,357,9I7.55 3,096,I , , ,658, , ,423, ,06I,I24.2I 6,4I9, I3,956.4I 3,06I,I24.2I 6,4I9, I3,956.4I 3,06I,I24.2I 3,865,392.I2 I3,956.4I IOO,I98, ,295, ,239,I ,070, ,099, I,542,I82.47 I OO,I98, ,295, ,239,I ,070, ,099, I,542,I ,839, ,276, ,I75,I ,I77, I,853,012.8I I,53I, , , , (52,869,246.15) (52,869,246.15) (47,97I,I00.37) 2,397,574.I7 79,399,26I.IO 107,786,44I.l4 I02,997, ,397,574.I7 2,118, ,399, , I29,906, I24,775,

25 SCHEDULE III-FUND BALANCE SHEET BY FUND GROUP FOR THE YEAR ENDED AUGUST 31,2012 CURRENT FUNDS UNRESTRICTED FUNCTIONAL LOAN AND GENERAL DESIGNATED AUXILIARY TOTAL RESTRICTED FUNDS Liabilities and Deferred Inflows Current Liabilities: Payables: Accounts 603, , , ,071, , Payroll 931, , , ,210, , Investment Trades Self-Insured Health and Dental Other 171, , , lnterfund Payable Due to Other Agencies Due to Other Funds Due to Other Members Funds Held for Investment Hedging Derivative Instruments Deferred Inflow of Resources Unearned Revenue 1,201, ,582, ,498, ,282, ,329, Employees' Compensable Leave 38, , , , Claims and Judgments Notes and Loans Payable Bonds Payable Capital Lease Obligations 18, , Liabilities Payable From Restricted Assets Funds Held for Others Obligations/Securities Lending Other Current Liabilities 397, , ,180, Total Current Liabilities 3,344, ,237, ,574, ,155, ,623, Non-Current Liabilities and Deferred Inflows lnterfund Payable Employees' Compensable Leave 877, , , ,119, Other Post Employment Benefits Claims and Judgments Notes and Loans Payable Bonds Payable Hedging Derivative Instruments Deferred Inflow of Resources Assets Held In Trust Liabilities Payable From Restricted Assets Funds Held for Others Capital Lease Obligations 62, , Other Non-Current Liabilities Total Non-Current Liabilities and Deflnflows 877, , , ,181, Total Liabilities and Deferred Inflows 4,221, ,444, ,671, ,337, ,623, Net Assets Invested In Capital Assets, Net of Debt Restricted For: Debt Service Capital Projects Education 1,265, , Endowment and Permanent Funds: Nonexpendable Expendable Unrestricted [Sch III-I] 4,924, ,921, ,793, ,639, Total Net Assets [Sch IV-Fund] 4,924, ,921, ,793, ,639, ,265, , Total Liabilities, Deferred Inflows and Net Assets 9,145, ,366, ,464, ,976, ,888, , CURRENT YEAR ALLOWANCE PRIOR YEAR ALLOWANCE Allowance For: Federal Receivables Other lntergovernrnental Receivables Accounts Receivable 2, Gifts, Pledges and Donations Receivable Loans Noncurrent Loans Current 7, , Student Receivables 146, , Other Receivables 2,

26 ENDOWMENT AND SIMILAR FUNDS PLANT FUNDS ANNUITY AND LIFE INCOME RENEWALS AND RETIREMENT OF FUN...; D-'S UN;.._EXP EN_D_ED REPLACEMENTS INDEBTEDNESS INVESTMENT IN PLANT TOTALS (MEMORANDUM ONLY) AGENCY FUNDS CURRENT YEAR PRIOR YEAR 82, , ,250, ,463, ,411, ,503, , , ,386, , ,760, ,448, , ,611, ,887, , , , , , , ,180, , ,468, , ,773, ,773, ,119, ,034, , ,181, ,034, ,468, , ,954, ,807, ,399, ,399, ,150, , , ,656, ,865,43226 I,991, ,884, , , , ,884, ,812, , , ,165, ,079, ,397, , ,399, ,951, ,967, ,397, ,118, ,399, , ,906, ,775,

27 UNRESTRICTED CURRENT FUNDS FUNCTIONAL AND GENERAL DESIGNATED AUXILIARY RESTruCTED LOANS ENDOWMENT AND SIMILAR FUNDS 14, , , ,840, , , , , , ,097, , , , Net Unrestricted Assets Reserved For: Encumbrances Capital Projects Retirement oflndebtedness Receivables [Net of Unearned Revenue] Inventories Prepaid Expenses Deposits Self-Insured Plans State Appropriations to Be Lapsed Advanced Technology/Research Programs TPEG Reserves Designated Tuition Set Aside Reserves Available University Fund Higher Education Fund Texas Forest Service-Special Reserves Prairie View A&M University-OCR & CJCP State Funds and Special Projects Unreserved Allocated Allocated for Operations Funds Functioning As Endowments Research/Sponsored Project Commitments Endowment Commitment Faculty/Researcher/Staff Capital Plan and Major Purchases Maintenance and Repair Other Unallocated Total Unrestricted {ill-fund Unrestr Net Assets] 329, , ,095, , , _...:;15~,1:.:3.:;.:3,..:.;71:.:0;:..29:...:..:.1,9:..::0..:.:1,:.:.;46:.:0;:..3:: ,924, ,921, ,793, ===============2=3=8,=67=4.=99= 2,452, , ,302, , I, 794, , Operating Reserve HELD FOR OTHERS realized Gain/Loss On Investments AGENCY FUNDS

28 PLANT FUNDS ANNUITY AND LIFE INCOME RENEWALS AND RETIREMENT OF INVESTMENT IN FUNDS UNEXPENDED REPLACEMENTS INDEBTEDNESS ;P;.;;LA;;;.;;;..NT.;;. ;..;;.;;.;;;.;..;.;;..: AGENCY 267, , TOTAL 1,012, , ,260, , , , , PRIOR YEAR 2,150, , ,898, , , , , , , , , ,095, , I,400, , ,742, :..,7_8...;.8,7_4_8._22_ ===========2=86=,8=39=.6=6 ======================== 29,165, ,079, ,550, ,270, ,168, ,105,

29 SCHEDULE THREE-A SCHEDULE OF CASH & CASH EQUIVALENTS FOR THE YEAR ENDED AUGUST 31, 2012 UNRESTRICTED CURRENT FUNDS FUNCTIONAL TOTAL AND GENERAL DESIGNATED AUXIUARY RESTRICTED Cash & Cash Equivalents Current Assets Cash On Hand: Cashiers Account 2, , Petty Cash Department Working Fund Total Cash On Hand 2, , Cash In Bank: Wells Fargo Bank Texas, N.A. Total Cash In Bank Cash In State Treasury: Fund ,745, ,745, Total Cash In State Treasury 5,745, ,745, Reimbursements Due From State Treasury 34, , Assets Held By System Offices-Current 7,066, , ,736, ,475, Total Current Cash and Cash Equivalents [III-Fund] 12,849, ,636, ,736, ,476, Restricted: Cash In Bank: Wells Fargo Bank Texas, N.A. 75, Total Cash In Bank 75, Assets Held By System Offices-Current 333, , Total Restricted Cash and Cash Equivalents [III-Fund] 409, , Total Cash & Cash Equivalents [Exhibit V] 13,258, ,636, ,736, ,476, ,

30 PLANT FUNDS LOAN ENDOWMENT AND ANNUITY AND LIFE INCOME RENEWALSAND RETIREMENTOF AGENCY FUNDS SIMILAR FUNDS FUNDS UNEXPENDED REPLACEMENTS INDEBTEDNESS FUNDS.;;...;;...;;.. ;:; ;;_ ;;_ ;; ;_ ;; ;; ;;...;;.. ;; ~----- ~-----.;_ ;_ ;; , ;;.. --==;....;;...;; ;;_ ;;_ ;;_ ;;_ , , ~ ---==-::::- -::: :::- ~ ~ ~ :::-.;;..---~~~"' , ;; ~.;; ;;.;; 82, = ======== ====== = ==== = ==== = ==== = ==== = ====

31 SCHEDULE IV-FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS BY FUND GROUP FOR THE YEAR ENDED AUGUST 31, 2012 CURRENT FUNDS UNRESTRICTED FUNCTIONAL LOAN AND GENERAL DESIGNATED AUXILIARY TOTAL RESTRICTED FUNDS Operating Revenues Sales of Goods and Services Tuition and Fees- Pledged Tuition 3,788, ,727, ,515, Fees 110, ,973, ,084, Discounts and Allowances-Tuition (507,936.99) (1,036,004.08) (1,543,941.07) Discounts and Allowances-Fees (14,870.05) (800,872.38) (815,742.43) Tuition and Fees- Pledged Net of Discounts and Allowances 3,376, ,863, ,240, Net Tuition and Fees -Non-Pledged Net Professional Fees Net Auxiliary Enterprises 7,897, ,897, Net Other Sales of Goods and Services 1,605, ,605, , Discounts and Allowances-Sales (791,398.50) (791,398.50) Total Sales of Goods and Services 3,376, ,468, ,106, ,951, , Premium Revenue Interest Revenue 16, Net Increase [Decrease] In Fair Value Federal Revenue- Operating 536, , ,669, Federal Pass Through Revenue 500, , , State Grant Revenue 61, , , State Grant Pass Through Revenue 400, , , , Other Grants and Contracts - Operating 129, , , Other Operating Revenue 396, , , , Total Operating Revenues 3,776, ,108, ,146, ,031, ,036, , Operating Expenses Instruction 9,026, ,761, ,787, , Research 827, , ,067, ,424, Public Service I,207, ,207, , Hospitals and Clinics Academic Support 478, ,665, ,143, , Student Services 1,160, ,034, ,194, , , Institutional Support 2,574, ,631, ,206, , Operation & Maintenance of Plant 2,777, ,280, ,058, , Scholarships & Fellowships 211, ,173, ,384, I,052, Auxiliary 6,315, ,315, Depreciation/ Amortization Total Operating Expenses 17,056, ,994, ,315, ,366, ,290, , Total Operating Income [Loss] (13,279,758.42) 113, , (12,335,550.30) (I,253,368.83) 17, Nonoperating Revenues [Expenses] Legislative Revenue [A] 18,001, ,001, Federal Revenue Non-Operating 1,985, Federal Pass Through Non-Operating State Pass Through Non-Operating Gifts I 1, , ,041, Land Income 4, , Investment Income 190, , , , Loan Premimn!Fees On Securities Lending Investing Activities Expense (55,057.36) (55,057.36) Interest Expense and Fiscal Charges (1,066.49) (1,066.49) Borrower Rebates and Agent Fees Gain[Loss] On Sale or Disposal of Cap Assets 27, , Net Increase [Decrease] In Fair Value 968, , Settlement of Claims Other Nonoperating Revenues , , Other Nonoperating [Expenses] (12,112.33) (1,247.36) (13,359.69) Total Nonoperating Revenues [Expenses] 18,180, I,270, ,451, ,050, Income [Loss] Before Other Revenues, and Transfers 4,900, ,384, , ,115, I, 796, ,

32 ENDOWMENT AND SIMILAR FUNDS ANNUITY AND LIFE INCOME FUNDS UNEXPENDED TOTALS PLANT FUNDS TOTALFORFY RENEWALS AND RETIREMENT OF INVESTMENT CURRENT PRIOR REPLACEMENTS...;IND::.:.::..=;EB::.;T:..:E:.::;D.:..;NE.=;S::.:S:... ;IN::..;,.:,P.=;LAN:..::.;,;T::... YE.:..:::AR..::..::.. YEA R 11,515, ,952, ,084, ,172, (1,543,941.07) (1,885,455.94) (815,742.43) (860,037.37) 15,240, ,379, ,897, ,287, ,623, (791,398.50) 1,730, (851,892.53) 23,969, ,546, , , ,206, I,886, , , , , , , , ,137, , ,091, ,353, ,798, ,220, ,492, ,421, ,217, ,212, ,187, ,045, ,221, ,526, ,555, ,932, ,646, ,615, ,857, ,437, ,951, ,315, ,431, ,822, ,822, ,524, ,555, ,822, ,040, ,838, (2,555,451.15) ( 4,822,552.12) (20,949,386.68) (23,485, ) 1, (3,530.29) (1,350.57) (1,350.57) 18,001, ,261, I,985, ,130, , ,499, ,552, , , , , , (55,057.36) (75,921.91) (1,066.49) (9,062.42) 18, , , I,690, , , (I,209,529.60) (1,226,419.58) (918,189.88) 1,499, (1,218,592.02) 22,781, ,494,957.II (1,055,658.37) (6,041,144.14) 1,832, (990,209.46)

33 SCHEDULE IV-FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS BY FUND GROUP FOR THE YEAR ENDED AUGUST 31,2012 CURRENT FUNDS UNRESTRICTED FUNCTIONAL AND GENERAL DESIGNATED AUXILIARY TOTAL RESTRICTED Other Revenues and Transfers Capital Contributions Capital Appropriation Higher Education Fund [A] Additions to Permanent and Term Endowments Special Items Extraordinary Items Transfers In Transfer From Other State Agencies Mandatory Transfers From Other Members Nonmandatory Transfers From Other Members 1,177, ,000, ,177, , Nonmand Trfr From Members/Agencies- Cap Asset Transfers From Other Funds 214, ,448, , ,454, Intrafund Transfer In 43,568, ,727, , ,858, , Transfers Out Transfer to Other State Agencies (204,006.67) (204,006.67) (294,567.18) (186,597.20) (481,164.38) Mandatory Transfers to Other Members Nonmandatory Transfers to Other Members (750.00) (750.00) Nonmand Trfr to Members/Agencies- Cap Assets Transfers to Other Funds Intrafund Transfer Out (432,451.10) (43,568,853.32) (37,674.34) (10,727,068.23) (272,300.00) (562,773.13) (742,425.44) (54,858,694.68) (1,745,125.22) (33,169.19) Legislative Transfers - In Legislative Transfers - Out (3,834,365.00) (3,834,365.00) Legislative Appropriations Lapsed Total Other Revenues and Transfers ( 4,052, ) 2,089, ,332, ( 630,566.32) (1,580,393.31) Change In Net Assets 848, ,473, ,163, ,485, , Beginning Net Assets, September I, 2011 and ,144, ,272, ,710, ,127, ,169, Restatement [IV-5-A] Beginning Net Assets, September I, 2011 and 2010 Res 4,144, ,272, ,710, ,127, ,169, Net Assets, August 31,2012 and ,993, ,745, ,873, ,612, ,385, Expended for Plant Facilities (69,112.63) (824,010.70) (79,639.18) (972,762.51) (120,353.10) Bonds Notes and Loans Net Assets As Reported On III-Fund 4,924, ,921, ,793, ,639, ,265, [A]Analysis of State Appropriations State Appropriations: Current Year Appropriations 15,498, Salary Increase Longevity Subtotal State Appropriations 15,498, Employee Benefits: Old Age Survivor's Insurance Match 739, Optional Retirement System 330, Staff Group Insurance Premium Reimbursement 1,143, Teacher Retirement System 281, Unemployment Compensation Insurance 7, Other Additions/Reductions Subtotal Employee Benefits 2,503, Higher Education Fund Total Analysis of State Appropriations 18,001, LOAN FUNDS 37, (277, ) (240,075.51) (222,342.35) 822, , , ,

34 PLANT FUNDS ENDOWMENT AND ANNUITY AND LIFEINCOME RENEWALSAND RETIREMENTOF SIMILAR FUNDS FUNDS UNEXPENDED REPLACEMENTS INDEBTEDNESS --~~~ II0, INVESTMENT IN PLANT 60, CURRENT YEAR TOTALS TOTALFORFY 60, , PRIOR YEAR 194, , ,5I , ,9I8.00 6I8.00 4,9II, ,837, ,91I, ,764,682.5I 54,892, ,784, ,I ,139, ,807, (6I8.00) (204,006.67) (48I,I64.38) (750.00) (2,764,682.51) (54,892,481.87) (I90,401.60) (464,750.34) (2,001,392.52) (13,509.85) (5,139,071.23) (58,807,672.20) (3,834,365.00) (4,3I7,564.00) (184,223.49) 118,0I , ,97I, ,399, (2,080,976.92) II6, (295,337.68) (I,069,I66.39) 5,23I,7I2.19 (3,07I,I86.38) 2,280, ,4I7, ,I50, (247, ) I07,967, (247,673.70) I 06,052, ,985, ,280, ,4I7, ,902, I07,7I9, Ill,038, ,397,574.I7 3,122,I ,833, II2,95I, ,967, (2,472,625.23) 3,565, ,397, ,5I ,399, Il2,951, I 07,967,