College and University Accounting

Transcription

1 College and University Accounting 2017 CBMI Fundamentals in Accounting Part 1

2 2 Objectives Provides information: About economic resources, obligations and net assets About income and its components About cash flows About stewardship responsibilities To help external users understand financial activities THE BASICS!!

3 3 Who sets the rules Financial Accounting Standards Board Governmental Accounting Standards Board AICPA Industry practice aka GAAP

4 4 Accounting Definition Webster: the art or system of keeping financial records Financial record components Assets - what we have Liabilities - what we owe Net Assets/Net Position - our equity

5 5 Assets Cash and cash equivalents Receivables By type net of allowance for noncollectability Inventories Funds held by others Investments [short and long-term] Fixed assets By type net of accumulated depreciation

6 6 Liabilities Payables and notes Unearned revenue Funds held for others (more later) Compensated absences Post-employment benefits Mortgages and bonds

7 7 Net Assets/Net Position Equity in capital assets Nonexpendable [endowment corpus] Expendable [more on this later]

8 8 Accounting Equation Equation Private: Assets = Liabilities + Net Assets Public: Assets + Deferred Outflow = (Liabilities + Deferred Inflow) + Net Position Revenues increase Net Assets/Net Position Expenses decrease Net Assets/Net Position Equation must remain balanced double entry

9 9 Fund Accounting Manner of organizing and managing Self-balancing set of assets, deferred outflow, liabilities, deferred inflow and net assets No longer required for reporting Data may be presented in footnote disclosure Not prohibited

10 10 Why use Funds for Account Codes? Maintains accountability Satisfies fiduciary responsibility Ensures donors resources used for stipulated purpose Separates financial transactions by purpose, type and use

11 11 Typical Operating Groups Current activities Loan activities Endowment and similar activities Plant and maintenance activities Agency or funds held for others

12 12 Restriction Criteria Privates per FASB Donor Publics per GASB External party What about internal designations?

13 Translation Restricted Expendable [Temporarily Restricted] Restricted Nonexpendable [Permanent Restricted] Unrestricted Expendable Current X X Loan X X? Endowment X X X Plant X X? Agency Other none 13

14 Operating items Compared to Net Assets Unr NA Temp NA Perm NA Current U X Current R X X Loan X X X(?) End FF X X End True X EndTerm X Plant X X? Agency X 14

15 15 Current Activities Resources for performing the primary operating activities of the institution Instruction Research Public service Administration and management Fund raising colleges include with admin. Both restricted and unrestricted

16 16 Loan Activities Resources Institutional Donated resources Federal - Perkins $ New loans change assets from cash to receivable No expenses

17 17 Endowments Invest $ and only spend interest income True endowment Term endowment Funds managed (functioning) as endowment Split-interest agreements Annuity contracts Life-income contracts

18 18 Plant Activities Construction Includes infrastructure Renewal and replacement Indebtedness Net investment in plant

19 19 Agency Transactions Resources (Funds) held for others Campus organizations Employees Other organizations Fiduciary items Deposits in transit Pension funds

20 20 Recognition Basis Accrual accounting Revenues recognized when earned regardless of whether cash is received debit cash or accounts receivable credit revenue Expenses recognized when obligated regardless of whether cash is disbursed debit expense credit cash or accounts payable

21 21

22 FINANCIAL TRANSACTIONS 2017 CBMI FUNDAMENTALS IN ACCOUNTING PART 2

23 REVENUES DISCUSSION OF REPORTING AND RECOGNITION CRITERIA

24 REVENUES FULL ACCRUAL REPORTED BY TYPE TYPE NOT PRESCRIBED BY GAAP TUITION RESEARCH CONTRACTS BY SOURCE OTHER TYPES CONTRIBUTED SERVICES AUXILIARY SERVICES HOSPITAL 3

25 OPERATING VERSUS NONOPERATING EXCHANGE TRANSACTIONS QUID PRO QUO TIME, SERVICE, PERFORMANCE, ETC NONEXCHANGE TRANSACTIONS NOTHING EXPECTED IN RETURN GRANTS VERSUS CONTRACTS 4

26 NONOPERATING REVENUES NEW GIFTS AND ENDOWMENTS INVESTMENT INTEREST INCOME PRIVATES REPORT UNEXPENDED SPENDING POLICY RESOURCES IN THIS CATEGORY NEW SPLIT-INTEREST GIFTS STATE APPROPRIATIONS - PUBLICS THAT ARE STATE AGENCIES CAPITAL APPROPRIATIONS AND GIFTS 5

27 RELEASING OF RESTRICTIONS PRIVATE INSTITUTIONS PURPOSE - WHEN COULD SPEND TIME - WHEN OCCURS WHEN RESTRICTION MET RESOURCES RECLASSED TO UNRESTRICTED FOR EXPENDITURE PUBLIC INSTITUTIONS PURPOSE - WHEN EXPENSE OCCURS TIME - WHEN OCCURS WHEN MET NO RECLASS IS NECESSARY 6

28 REVENUE RECOGNIZED ONLY ONCE REVENUE REPORTED NET OF DISCOUNT NACUBO AR 97-1 PRIVATES NACUBO AR PUBLICS DISCOUNT TYPICALLY DETERMINED BY COMPUTATION RATHER THAN INDIVIDUAL TRANSACTIONS 7

29 GIFT PLEDGES RECOGNIZED UPON RECEIPT REASONABLE DOCUMENTATION NONCONDITIONAL VERSUS CONDITIONAL - PRIVATES EXAMPLES ELIGIBILITY CRITERIA - PUBLICS EXAMPLES 8

30 FAIR VALUE ACCOUNTS RECEIVABLE INVESTMENTS REALIZED UNREALIZED ASSET IMPAIRMENT RECOGNIZE LOSS TEMPORARY VERSUS PERMANENT 9

31 FAIR VALUE REPORTING St. Edward's University, Inc. Notes to Consolidated Financial Statements The following table presents the fair value measurements of financial assets and liabilities recognized in the accompanying consolidated statements of financial position measured at fair value on a recurring basis and the level within the ASC Topic 820 fair value hierarchy in which the fair value measurements fall at June 30, 2015: Fair value measurement: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobserv- Assets Inputs able Inputs Fair Value (Level 1) (Level 2) (Level 3) Financial Assets Short-term investments Money market funds $ 3,530,730 $ 3,530,730 $ $ Total short-term investments s 3,530,730 s 3,530,730 $ $ Long-term investments Cash $ 60,469 $ 60,469 $ $ Money market funds 2,236,295 2,236,295 Mutual funds 81,659,443 81,659,443 Domestic and international stocks 1,737,896 1,737,896 Hedge funds 8,464,499 8,464,499 Real estate and other 440, ,944 Total long-term investments $ 94,599,546 $ 85,694,103 $ 8,464,499 $ 440,944 Financial Liabilities Interest rate swaps payable $ 3,651,077 $ 3,651,077 $ 10 Total long-term obligations s 3,651,077 $ $ 3,651,077 $

32 PREPAID REVENUE REPORT AS LIABILITY NOT EARNED FUTURE PERIOD TUITION AND FEES GIFTS TO PUBLIC INSTITUTIONS FOR WHICH THE ELIGIBILITY HAS NOT YET BEEN MET - EXAMPLES PUBLICS WITH LONG-TERM (BEYOND ONE YEAR) PREPAID RECOGNIZE THE RESOURCES AS DEFERRED INFLOWS 11

33 EXPENSES FULL ACCRUAL RECOGNITION DISCUSSION OF DISPLAY AND CRITERIA

34 EXPENSES DISPLAY BY FUNCTION / PROGRAM PUBLICS OR PRIVATES MAY DISPLAY BY NATURAL CLASSIFICATION PRIVATE INSTITUTION EXPENSES DISPLAYED ONLY IN UNRESTRICTED NET ASSETS OPERATING VERSUS NONOPERATING PUBLICS WITH LONG-TERM (BEYOND ONE YEAR) PREPAID EXPENSES REPORT THEM AS DEFERRED OUTFLOWS 13

35 FUNCTIONS INSTRUCTION RESEARCH PUBLIC SERVICE ACADEMIC SUPPORT STUDENT SUPPORT INSTITUTIONAL SUPPORT OPERATION AND MAINTENANCE OF PLANT PRIVATES MUST ALLOCATE TO OTHER FUNCTIONS ALLOCATION METHOD NOT PRESCRIBED SCHOLARSHIP AND FELLOWSHIPS DEPRECIATION PUBLICS ONLY, PRIVATES MUST ALLOCATE 14

36 NATURAL CLASS OF EXPENSES NO RULES OR OFFICIAL GUIDANCE USUALLY SALARY AND WAGE BY TYPE FRINGE BENEFITS BY TYPE MAJOR EXPENSES SUCH AS UTILITIES, TRAVEL, SUPPLIES, SCHOLARSHIPS, DEPRECIATION, ETC. IF PRIVATE INSTITUTION REPORTS NATURAL CLASSIFICATIONS, FUNCTIONAL COST DISPLAYED IN NOTE DISCLOSURES (OPTIONAL FOR PUBLICS) 15

37 OTHER EXPENSE AUXILIARY SERVICES REPORTED SEPARATELY WHEN FUNCTIONAL DISPLAY EMPLOYED AUXILIARY SERVICES NOT REPORTED SEPARATELY WHEN NATURAL CLASSES ARE USED 16

38 NONOPERATING EXPENSES EXTRAORDINARY EXPENSES PUBLICS ONLY NONOPERATING OR CAPITAL RELATED INTEREST PAID ON CAPITAL AND RELATED DEBT ISSUES ADJUSTMENTS TO SPLIT-INTEREST LIABILITIES 17

39 18

40 Financial Reporting 2017 CBMI Fundamentals in Accounting Part 3

41 Required Management Discussion and Analysis (publics only) Exhibit 7 Statement of Financial Position / Statement of Net Position Exhibit 1 & 4 Statement of Activity / Statement of Revenues, Expenses and Change in Net Position Exhibit 2 and 5 Statement of Cash Flows Exhibit 3 and 6 Note Disclosures Exhibit 8 CBMI 2014 PART 3

42 Statement Concepts High level of aggregation that constitutes fair presentation Presentation order Private liquidity nearness to providing cash or using cash Public liquidity within classification Current versus noncurrent per ARB 43 CBMI 2014 PART 3

43 Supplemental Required of Public Institutions Management Discussion and Analysis Exhibit 7 Required elements Relationship between statements Financial data Overall financial health of the institution Description of significant capital assets and outstanding debt Known economic conditions NO boilerplate!!!!! CBMI 2014 PART 3

44 M D & A Check list Exhibit 7 A Discuss relationship of statements to one another Statement of Net Assets Statement of Revenues, Expenses and Changes in Net Assets Statement of Cash Flows B Financial data discussion comparative 1 Total assets capital vs other 2 Total liabilities capital vs other 3 Total net assets capital vs other 4 Program revenues by major sources 5 General revenues by major sources 6 Total revenues 7 Program expenses by function 8 Total expenses 9 Excess revenue over expenses 10 Contribution 11 Special or extraordinary items 12 Transfers 13 Change in net assets 14 Net assets at end of year C Analysis of overall financial position and results of operation D does not apply C&U do not report funds E does not apply C&U do not report budget data F Description of significant capital assets and debt activity during year G does not apply as modified approach for infrastructure not used H Discussion of known facts, decisions or conditions that will affect C&U

45 Statement s Time Dimensions Statement of Financial Position as of a specific date Statement of Activity reports activity for a specific period of time such as a fiscal year Statement of Cash Flows reports activity for a specific period of time that matches the reporting period used in the statement of activity CBMI 2014 PART 3

46 Statement of Financial Position Status of assets, liabilities and net asset accounts at a particular date Snapshot Also referred to as Balance Sheet Presentation format A = L + NA [ balanced most often used by private institutions] A + DO L DI = NP [public format] CBMI 2014 PART 3

47 Review Exhibit Private Statement of Financial Position Exhibit 1 Public Statement of Net Position Exhibit 4 Appreciation extended to the institutions providing financial data

48 William Marsh Rice University Consolidated Statements of Financial Position June 30, 2016 and 2015 Exhibit 1 (in thousands of dollars) Assets Cash and cash equivalents $ 27,054 $ 13,896 Cash of consolidated endowment investments 43, ,924 Total cash and cash equivalents 70, ,820 Accounts receivable and other assets, net 81,605 94,246 Pledges receivable, net 175, ,063 Investments 5,777,441 6,032,613 Property and equipment, net 1,284,450 1,190,319 Total assets $ 7,390,150 $ 7,627,061 Liabilities Accounts payable and other liabilities $ 93,569 $ 80,497 Liabilities of consolidated endowment investments 81,188 73,893 Notes and bonds payable 931, ,703 Actuarial liability for annuities payable 114, ,940 Government refundable advances 7,554 7,443 Total liabilities 1,227,499 1,239,476 Net Assets Net assets: Rice University 6,124,347 6,358,252 Net assets: Non controlling interest 38,304 29,333 Total net assets 6,162,651 6,387,585 Total liabilities and net assets $ 7,390,150 $ 7,627,061 Detail of net assets: Temporarily Permanently Unrestricted Restricted Restricted Internally designated $ 144,651 $ $ $ 144,651 $ 146,226 Restricted by donor 151, , , ,068 Net investment in plant 255,033 63, , ,171 Endowment and designated for long term investment 2,329,746 1,921,451 1,103,311 5,354,508 5,573,038 Life income trusts 32,793 13,449 46,242 48,854 Student loans 2,450 2,902 5,352 3,895 Net assets: Rice University 2,883,692 2,120,993 1,119,662 6,124,347 6,358,252 Net assets: Non controlling interest 38,304 38,304 29,333 Total net assets $ 2,921,996 $ 2,120,993 $ 1,119,662 $ 6,162,651 $ 6,387,585

49 TYLER JUNIOR COLLEGE DISTRICT STATEMENTS OF NET POSITION AS OF AUGUST 31, 2016 AND 2015 Exhibit 4 ASSETS Current Assets Cash and Cash Equivalents $16,097,920 $ 15,643,160 Accounts Receivable (net of allowance for doubtful accounts of $5,524,201 and $4,994,378 respectively) 20,063,294 18,639,623 Prepaid Expenses 59,901 31,724 Total Current Assets 36,221,115 34,314,507 Noncurrent Assets Cash and Cash Equivalents 1,702,664 6,441,626 Deferred Charges 302, ,931 Capital Assets (Net) 207,241, ,562,143 Total Noncurrent Assets 209,246, ,552,700 TOTAL ASSETS 245,467, ,867,207 Deferred Outflows of Resources Deferred Outflows Related to Pensions 3,892,603 1,411,403 LIABILITIES Current Liabilities Accounts Payable and Accrued Liabilities 6,322,042 7,798,363 Deferred Revenues 20,844,938 19,732,816 Current Portion of Compensated Absences 100, ,777 Current Portion of Bonds Payable 8,180,000 7,668,000 Current Portion of Notes Payable 117,303 Total Current Liabilities 35,447,547 35,420,259 Noncurrent Liabilities Accrued Compensable Absences Payable 905, ,989 Net Pension Liability 10,097,312 9,237,442 Bonds Payable 110,265, ,794,949 Notes and Loans Payable 4,852 Total Noncurrent Liabilities 121,267, ,971,232 TOTAL LIABILITIES 156,714, ,391,491 Deferred Inflows of Resources Deferred Inflows Related to Pensions 3,374,782 2,580,807 NET POSITION Net investment in capital assets 88,796,058 85,846,676 Restricted Expend able Financial Aid and Scholarships 748, ,685 Unrestricted (273,975) 1,738,951 TOTAL NET POSITION $89,270,217 $ 88,306,312

50 Statement Revenues & Expense Resource flow Revenues by type Expenses by program / program Operating versus nonoperating Operating measure not defined by FASB or GASB Still being debated CBMI 2014 PART 3

51 Review Exhibit Private Statement of Activities Exhibit 2 Public Statement of Revenues, Expenses and Change in Net Position Exhibit 5

52 William Marsh Rice University Exhibit 2 Consolidated Statements of Activities Years Ended June 30, 2016 and 2015 (With Summarized Financial Information for the Year Ended June 30, 2015) (in thousands of dollars) Unrestrict ed Temporari ly Permanen tly Restricted Restricted Total Total Operating revenues Investment returns distributed for operations $ 151,327 $ 115,106 $ $ 266,433 $ 249,284 Student tuition and fees, net 162, , ,227 Grants and contracts 135, , ,076 Gifts and pledges 29,983 2,823 32,806 56,833 Gifts and trusts released from restrictions 104,483 (104,483) Auxiliary enterprises 44,471 44,471 41,454 Other revenues 24,954 24,954 30,491 Total operating revenues 653,344 13, , ,365 Operating expenses Salaries and wages 320, , ,692 Benefits 77,927 77,927 71,186 Scholarships 20,003 20,003 19,077 Depreciation and amortization 68,414 68,414 67,080 Interest and bond costs 34,895 34,895 32,931 Utilities and rent 11,722 11,722 13,627 Other operating expenses 128, , ,875 Total operating expenses 662, , ,468 Net operating (loss) income (8,805) 13,446 4,641 26,897 Nonoperating changes Gifts, grants, and pledges for property and endowment 8,770 23,909 21,010 53,689 75,493 Investment returns, reduced by operating distribution above (124,724) (146,810) (3,795) (275,329) (31,016) Revenues of consolidated endowment investments 23,557 23,557 18,203 Expenses of consolidated endowment investments (35,480) (35,480) (24,274) Net assets released from restrictions 42,625 (42,862) 237 Change in liabilities due under lifeincome agreements (13,686) 1,507 (12,179) (7,649) Other nonoperating changes, net 1,441 1,441 (23,960) Net nonoperating changes (83,811) (179,449) 18,959 (244,301) 6,797 Total (decrease) increase in net assets controlled by Rice University (92,616) (166,003) 18,959 (239,660) 33,694 Net loss attributable to noncontrolling interest 5,755 5,755 1,166 Total (decrease) increase in net assets Rice (86,861) (166,003) 18,959 (233,905) 34,860 Net assets Rice Beginning of year 2,970,553 2,286,996 1,100,703 6,358,252 6,323,392 End of year 2,883,692 2,120,993 1,119,662 6,124,347 6,358,252 Net assets Noncontrolling interest Beginning of year 29,333 29,333 Net loss (5,755) (5,755) (1,166) Net of equity transactions 14,726 14,726 30,499 End of Year 38,304 38,304 29,333 Total net assets $ 2,921,99 $ 2,120,99 $ 1,119,66 $ 6,162,65 $ 6,387,

53 TYLER JUNIOR COLLEGE DISTRICT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEARS ENDED AUGUST 31, 2016 AND 2015 REVENUES : Tuition and Fees (net of $14,517,508 and $15,696,453 in discounts) $16,754,371 $ 14,977,980 Auxiliary Enterprises (net of $3,509,584 and $2,924,706 in discounts) 5,103,155 3,665,385 Federal Grants and Contracts 4,270,172 3,842,958 State Grants and Contracts 1,654,043 1,767,315 Local Grants and Contracts 459, ,759 Sales and Service of Educational Activities 106, ,873 Interest on Student Loans 95,640 53,880 Miscellaneous Operating Revenues 3,388,830 5,556,939 Total Operating Revenues 31,832,104 30,411,089 EXPENSES Operating expenses Instruction 31,740,018 31,823,349 Public Service 2,850,500 2,564,089 Academic Support 3,454,246 3,240,998 Student Services 7,878,226 8,368,551 Institutional Support 14,363,329 13,395,614 Operations and Maintenance of Plant 7,941,044 7,695,539 Scholarship and Fellowships (net of $18,027,092 and $18,621,159 in discounts) 3,725,898 3,718,928 Auxiliary Enterprises 9,016,053 8,083,988 Depreciation 8,323,527 7,542,729 Total Operating Expenses 89,292,841 86,433,785 Operating (Loss) (57,460,737) (56,022,696) NON OPERATING REVENUES (EXPENSES) State Appropriations (non capital) 21,197,433 21,051,274 Property Taxes 22,952,007 22,233,785 Federal Revenue, Non Operating 18,713,030 19,605,018 Investment Income 75, ,591 Interest on Capital Related Debt (4,513,025) (4,457,322) Total Non Operating Revenues (Expenses) 58,424,642 58,536,346 Increase in Net Position 963,905 2,513,650 Net Position, Beginning of the Year 88,306,312 85,792,662 Net Position, End of the Year $ 89,270,27 $ 88,306,312

54 Statement of Cash Flows Articulates actual cash received and disburses from beginning of the year to the end of the year Activities presented by type Differences exist between public and private presentation CBMI 2014 PART 3

55 Significant Differences FASB SFAS 95 GASB GASB 9 Activities Operating direct or indirect method Financing Investing Activities Operating direct method only Noncapital financing Capital financing Investing CBMI 2014 PART 3

56 Review Exhibit Private and Public Statement of Cash Flows

57 William Marsh Rice University Consolidated Statements of Cash Flows Years Ended June 30, 2016 and 2015 Exhibit 3 (in thousands of dollars) Cash flows from operating activities Total (decrease) increase in net assets controlled by Rice $ (239,660) $ 33,694 Adjustments to reconcile increase (decrease) in net assets to net cash used in operating activities Depreciation of property and equipment 68,414 67,080 Loss on disposal of property and equipment 1, Net realized and unrealized investment (gains) loss 62,446 (163,024) Contributions restricted for long term purposes and noncash contributions (33,412) (54,046) Donated securities received (14,479) (25,292) Proceeds from sale of donated securities 6,661 10,004 Actuarial change in life income agreements 12,181 7,649 Change in fair value of commodity swap agreements (615) (405) Gain on settlement of beneficial interest in escrow funds (1,983) Interest rate swap termination (7,365) Gain on settlement of interest rate swap agreements (3,748) Loss (gain) on extinguishment of debt 27,196 Debt prepayment costs (28,128) Change in Accounts receivable and other assets 23,465 (31,096) Accounts receivable associated with consolidated endowment companies (5,357) (7,713) Pledges receivable for current purposes 13,339 (27,267) Liabilities of consolidated endowment investments 1,592 27,366 Accounts payable and other liabilities 7,183 1,461 Net cash used in operating activities (98,736) (173,018) Cash flows from investing activities Proceeds from sales and maturities of investments 1,037,991 1,054,496 Purchases of investments (829,110) (939,491) Purchases of investments by consolidated endowment companies (28,339) Purchases of consolidated endowment investments, net of cash acquired (8,549) Purchases of fixed assets by consolidated endowment investments (87,266) (16,700) Purchases of property and equipment (74,663) (66,766) Net cash (used in) provided by investing activities 18,613 22,990 Cash flows from financing activities Contributions restricted for endowment 4,397 18,702 Contributions restricted for property 7,983 16,049 Contributions restricted for trusts and other 15,511 16,441 Proceeds from sale of interest in consolidated investment company 16,783 Dividends paid by consolidated investment companies to noncontrolling interest (3,522) Proceeds from sale of donated securities restricted for endowment 5,369 10,363 Proceeds from sale of donated securities restricted for property 2,449 4,925 Principal payment of tax exempt bonds (22,635) (2,500) Advance refunding of tax exempt bonds (537,315) Proceeds from issuance of taxable commercial paper 22,365 Payment of outstanding tax exempt commercial paper (6,930) (25,695) Proceeds from issuance of taxable bonds 695,955 Issuance cost for taxable bonds (662) Issuance of debt from consolidated endowment investments 5,703 44,584 Increase in government refundable advances Net cash provided by financing activities 25, ,301 Net (decrease) increase in cash and cash equivalents (54,904) 113,273 Cash and cash equivalents Beginning of year 125,820 12,547 End of year $ 70,916 $ 125,820

58 EXHIBIT 6 TYLER JUNIOR COLLEGE DISTRICT STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED AUGUST 31, 2016 AND CASH FLOWS FROM OPERATING ACTIVITIES 2016 Receipts from students and other customers $ 16,380,74 $ 14,479,227 1 Receipt of state financial aid 1,654,043 1,767,315 Receipt of federal financial aid 4,270,172 3,842,958 Receipt of local grants and support 459, ,759 Receipt from sales and services of educational activities 106, ,873 Receipt from auxiliary enterprises 5,103,155 3,665,385 Receipt of interest on student loans 95,640 53,880 Receipt from other operating revenues 1,284,976 1,875,128 Payments for salaries and benefits to employees (48,111,278) (46,180,263) Payments to suppliers for goods and services (28,814,896) (27,569,452) Net cash used in operating activities (47,571,554) (47,519,190) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipt from state educational contracts 16,823,569 17,002,767 Receipts from Non Operating Federal Revenue 22,807,024 22,255,098 Property tax revenues 18,920,094 19,191,062 Receipts from student organizations 1,456, ,578 Payments to student organizations (180,256) (1,002,949) Net cash provided by noncapital financing activities 59,827,384 58,298,556 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets and construction costs (5,469,178) (55,014,802) Proceeds from sale of land 993,905 Bond proceeds 27,325,000 10,000,000 Issuance costs on debt (179,975) (124,000) Principal payments on capital related debt (36,343,860) (6,514,420) Interest on capital related debt (4,467,327) (4,314,680) Contributions received for capital related financing 1,526,206 3,681,811 Net cash used in capital and related financing activities (16,615,229) (52,286,091) CASH FLOWS FROM INVESTING ACTIVITIES Investment income 75, ,591 Maturity of investments 7,000,000 Net cash provided by investing activities 75,197 7,103,591 Increase (decrease) in cash and cash equivalents (4,284,202) (34,403,134) Cash and cash equivalents, September 1 22,084,786 56,487,920 Cash and cash equivalents, August 31 $ 17,800,584 $ 22,084,786 Reconciliation of cash on Exhibit 1: Cash and cash equivalents current $ 16,097,920 $ 15,643,160 Cash and cash equivalents noncurrent 1,702,664 6,441,626 Total cash and cash equivalents $ 17,800,584 $ 22,084,786

59 TYLER JUNIOR COLLEGE DISTRICT STATEMENTS OF CASH FLOWS FOR THE FISCAL YEARS ENDED AUGUST 31, 2016 AND 2015 (Continued) Reconciliation of operating loss to net cash used by operating activities Operating loss $ (57,460,737) $ (56,022,696) Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation 8,323,527 7,542,729 Gain on sale of land (577,648) Non operating plant revenue (1,526,206) (3,681,811) Amortization of deferred charges (36,302) 294,740 Payments made directly by state for benefits 4,373,864 4,048,507 (Increase) decrease in assets Receivables (net) (1,485,752) (2,217,945) Prepaid expenses (28,177) 29,314 Deferred outflows on pensions (2,481,200) (610,645) Increase (decrease) in liabilities Accounts payable and accrued liabilities 593,211 (48,423) Deferred revenues 1,112,122 1,719,192 Deferred inflows on pensions 793,975 2,580,807 Pension liability 859,870 (1,122,114) Compensated absences (32,101) (30,845) Net cash used in operating activities $ (47,571,554) $ (47,519,190)

60 Other Required Information Footnote Disclosures Significant accounting policies Investments Capital assets Debt Pension and OPEB plans Other CBMI 2014 PART 3

61 Public Disclosures Publics only Credit risks Statement of Capital Assets Matrix Statement of Long term Debt Matrix Segment data New information regarding receivables and payables Other as shown on Exhibit CBMI 2014 PART 3

62 Financial Statement Disclosures Checklist Significant Accounting Policies Nature of operations Reporting entity including discussion of affiliated organizations Definition of each net position class Financial statement presentations Policy of eliminating internal activity Policy for defining operating and nonoperating Policy for releasing restrictions Basis of accounting and measurement focus Definition of cash and cash equivalents Property tax revenues (if appropriate) Investments Noncurrent cash and investments Collections and their recognition policy Capital asset recognition and fair value determination Capital asset depreciation method and life [this can be presented as a regular note] Deferred revenue Endowment spending policy and payout Compensated absences recognition Noncurrent liabilities Income tax Unrelated business income tax Revenue discount display - on face or in notes Pledge recognition Unconditional Conditional Eligibility Funds held in trust for others Accounting changes [change of estimates] Accounting changes (new reporting standard) Reclassifications Gifts to acquire long-lived assets Maturity of restrictions Maturity of split-interest gifts Policy to value gift receipts Estimates Cash and risk exposure Accounts receivable with details of components that link to revenue types Inventory Notes and pledge receivable with details Lease receivables Loans receivable Deposits and investments credit risk details Capital assets and accumulated depreciation matrix Accounts payable with details that link to expense types Unearned revenue Long-term liabilities by type with maturities Lease liabilities Capital lease data required Operating lease data optional; Self-insurance Funds held for others including split-interests Funds held in trust by others Unearned pledges and gifts Designation of unrestricted net position (contractual arrangements or encumbrances) Components of restricted net position holdings Pension and retirement plans Post-retirement and post-employment plans Contingencies Risk management Related parties Commitments [details of designated unrestricted net position] optional Capital asset impairment Termination plan obligations Natural class to function crosswalk optional NACUBO recommended Segments Reclassifications Subsequent events Other as appropriate [such as direct lending] Exhibit 8

63 Why Analyze Financial Data Industry pressure Cost crisis Mission drift Legislative concerns Public Confidence CBMI 2014 PART 3

64 Determining What Measures to Employ How are we doing? Where are we headed? What measures apply to us? How do we best measure? Comparison peer group Trend analysis our institution over time National norms within industry Suggested Ratios See Appendix CBMI 2014 PART 3

65 Sources of Data Financial reports WWW Associations [NACUBO, NASULGA, AGE, IPEDS, NCHEMS] Specific groups HR, auxiliary, etc. Athletic conferences Personal contacts CBMI 2014 PART 3

66 Recap FASB vs GASB Exhibits M D & A (publics only) Recognition and format Income and expense presentation Cash flow reporting Note disclosures CBMI 2014 PART 3

67 Questions?

68 Thank You