FINANCIAL REPORT. of the UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER FORT WORTH, TEXAS. Michael R. Williams, DO, MD, MBA, President

Transcription

1 FINANCIAL REPORT of the UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER FORT WORTH, TEXAS Michael R. Williams, DO, MD, MBA, President For the fiscal year ended August 31, 2013

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3 TABLE OF CONTENTS Letter of Transmittal... 1 Organizational Data... 3 Statements Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Note 1: Matrix of Operating Expenses Reported by Function Statement of Cash Flows Schedules 1A Notes to Schedule of Expenditures of Federal Awards B Schedule of State Grant Pass Throughs From/To State Agencies A Miscellaneous Bond Information B Changes in Bonded Indebtedness C Debt Service Requirements D Analysis of Funds Available for Debt Service Reconciliation of Cash in State Treasury... 20

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7 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER ORGANIZATIONAL DATA August 31, 2013 BOARD OF REGENTS Brint Ryan... (Term expires )... Dallas Michael R. Bradford... (Term expires )... Midland Steve Mitchell... (Term expires )... Richardson Donald Potts... (Term expires )... Dallas Al Silva... (Term expires )... San Antonio Milton B. Lee... (Term expires )... San Antonio Rusty Reid... (Term expires )... Ft. Worth Gwyn Shea... (Term expires )... Irving B. Glen Whitley... (Term expires )... Hurst STUDENT REGENT Rudy Reynoso... (Term expires ).. Sherman OFFICERS OF THE BOARD Brint Ryan... Chairman Donald Plotts..... Vice Chairman Julia A. Boyce... Secretary ADMINISTRATIVE OFFICERS Lee Jackson... Chancellor Michael R. Williams... President John. A. Harman... Senior Vice President for Finance and CFO 3

8 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Statement of Net Position For the Fiscal Year Ended August 31, 2013 ASSETS AND DEFERRED OUTFLOWS Current Assets Cash and Cash Equivalents August 31, August 31, Cash on Hand $ 10, $ 9, Cash in Bank 23,027, ,074, Reimbursement Due from Treasury 829, , Cash in State Treasury 4,968, ,041, Cash Equivalents 6,910, ,805, Restricted: Cash and Cash Equivalents Cash on Hand Cash in Bank 19,294, ,070, Cash Equivalents 1,927, , Legislative Appropriations 14,715, ,905, Receivables from: Federal 3,429, ,532, Other Intergovernmental 265, , Accounts Receivable 221, ,895, Gifts Receivable 60, , Other Receivables 3,275, ,086, Due From Other Agencies 5,430, ,049, Due From Other Components 77, , Consumable Inventories 195, , Merchandise Inventories 21, , Loans and Contracts 152, , Other Current Assets 38, , Total Current Assets 84,852, ,966, Non-Current Assets and Deferred Outflows Loans and Contracts 3,250, ,368, Unrestricted Investments 70,130, ,048, Capital Assets: Non-Depreciable or Non-Amortizable Land and Land Improvements 23,218, ,057, Construction in Progress 720, Other Tangible Capital Assets 179, , Depreciable or Amortizable Buildings and Building Improvements 161,879, ,879, Less Accumulated Depreciation (75,050,502.32) (69,326,382.32) Facilities and Other Improvement 3,888, ,322, Less Accumulated Depreciation (1,050,573.74) (1,011,862.75) Furniture and Equipment 40,501, ,912, Less Accumulated Depreciation (26,921,628.32) (24,610,219.28) Vehicles, Boats and Aircraft 903, , Less Accumulated Depreciation (489,471.71) (441,628.84) Other Capital Assets 8,191, ,203, Less Accumulated Depreciation (1,776,412.82) (1,295,542.05) 4

9 August 31, August 31, Computer Software 539, , Less Accumulated Amortization (245,219.64) (267,529.44) Total Non-Current Assets and Deferred Outflows 207,870, ,268, Total Assets and Deferred Outflows $ 292,723, $ 306,234, LIABILITIES AND DEFERRED INFLOWS Current Liabilities Payables From: Accounts Payable 4,901, ,501, Payroll Payable 8,323, ,893, Other Payables 1, ,431, Due to Other Agencies 12, , Due to Other Components 688, , Deferred Inflows 12,218, ,908, Revenue Bonds Payable 6,243, ,133, Employees Compensable Leave 947, , Funds Held for Others 14,182, ,553, Other Current Liabilities 1,317, Total Current Liabilities 48,836, ,496, Non-Current Liabilities and Deferred Inflows Revenue Bonds Payable 71,624, ,867, Employee's Compensable Leave 6,846, ,315, Other Non-Current Liabilities 30, , Total Non-Current Liabilities and Deferred Inflows 78,501, ,199, Total Liabilities and Deferred Inflows 127,338, ,695, NET POSITION Invested in Capital Assets, Net of Related Debt 56,621, ,549, Restricted for: Debt Retirement 19, , Funds Held as Permanent Investments Non-Expendable 25,723, ,329, Expendable 10,000, Other Restricted 25,460, ,075, Unrestricted 47,560, ,564, Total Net Position 165,385, ,538, Total Liabilities and Net Position $ 292,723, $ 306,234,

10 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended August 31, 2013 August 31, August 31, OPERATING REVENUES Tuition and Fees - Non-Pledged Tuition and Fees - Pledged $ 23,814, $ 21,634, Discounts and Allowances (747,315.11) (669,712.04) Professional Fees 76,143, ,726, Other Sales of Goods and Services 2,924, ,375, Federal Revenue - Operating 27,677, ,125, Federal Pass Through Revenue 1,467, ,269, State Grant Revenue 2,438, ,059, State Grant Pass Through Revenue 953, , Other Grants and Contracts - Operating 9,930, ,203, Other Operating Revenues 1,991, , Total Operating Revenues 146,593, ,561, OPERATING EXPENSES (1) Instruction 37,159, ,216, Research 33,959, ,091, Public Service 8,217, ,376, Academic Support 99,881, ,338, Student Services 5,353, ,081, Institutional Support 15,916, ,230, Operations and Maintenance of Plant 15,234, ,689, Scholarships and Fellowships 1,674, ,272, Auxiliary Enterprises 371, , Depreciation 9,289, ,335, Total Operating Expenses 227,056, ,990, Operating Income (Loss) (80,462,867.05) (76,429,017.76) NONOPERATING REVENUES (EXPENSES) Legislative Appropriations (GR) 53,886, ,235, Additional Appropriations (GR) 9,788, ,404, Gifts 1,223, , Investment Income 3,544, ,857, Investing Activities Expense (5,242.59) (148,446.63) Interest Expense and Fiscal Charges (3,261,566.62) (4,084,763.55) Gain/(Loss) on Sale/Disposal of Capital Assets (32,994.22) (522,388.55) Net Increase (Decrease) in Fair Value of Investments 402, (630,848.77) Settlement of Claims (278,097.99) (250,438.97) Other Nonoperating Revenues 2, ,307, Total Nonoperating Revenues /(Expenses) 65,270, ,204, Income/(Loss) before Other Revenues, Expenses, Gain/Losses and Transfers (15,192,480.71) (9,224,696.90) OTHER REVENUES, EXPENSES, GAINS LOSSES AND TRANSFERS Capital Contributions - 173, Capital Appropriations - HEF (GR) 8,771, ,771, Interagency Transfers Cap Assets-Decrease (443,851.72) (409,577.46) Transfers-Out (1,515,044.81) (389,491.03) Legislative Transfers-Out (773,000.00) (1,806,301.56) Total Other Revenue, Expenses, Gain/Losses and Transfers 6,039, ,339,

11 August 31, August 31, CHANGE IN NET POSITION (9,153,112.24) (2,885,406.44) Net Position, Beginning 174,538, ,423, Restatements - - Net Position, Beginning, as Restated 174,538, ,423, NET POSITION, ENDING $ 165,385, $ 174,538, (1) See Note 1: Matrix of Operating Expenses Reported by Function on Page 8. 7

12 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Note 1: Matrix of Operating Expenses Reported by Function For the Fiscal Year Ended August 31, 2013 Public Academic Student Operating Expenses Instruction Research Service Support Services Cost of Goods Sold $ - $ - $ - $ - $ - Salaries and Wages 24,856, ,972, ,979, ,526, ,383, Payroll Related Costs 5,397, ,050, , ,366, , Professional Fees & Svcs 658, ,256, ,120, ,477, , Federal Pass-Thru Expense 289, , State Grant Pass-Thru Exp Travel 247, , , , , Material and Supplies 1,319, ,778, , ,810, ,392, Communication & Utilities 17, , , , , Repairs and Maintenance 248, , , , , Rentals and Leases 266, , , , , Printing and Reproduction 37, , , , , Depreciation Bad Debt Expense , Interest Scholarships 604, , , , , Other Operating Expenses 3,215, ,269, , ,495, , Total Operating Expenses $ 37,159, $ 33,959, $ 8,217, $ 99,881, $ 5,353,

13 Operation and 2013 Institutional Maintenance of Scholarships Auxiliary Total Support Plant and Fellowships Enterprises Depreciation Expenditures $ - $ - $ - $ - $ - $ - 11,359, ,507, , , ,712, ,851, ,052, (0.02) 47, ,128, , , , , ,275, , , , , ,860, , ,290, , , ,080, , ,202, , ,419, , ,182, , , ,941, , , ,618, , , , , ,289, ,289, , , ,651, ,549, , ,357, , , ,362, $ 15,916, $ 15,234, $ 1,674, $ 371, $ 9,289, $ 227,056,

14 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Statement of Cash Flows For the Fiscal Year Ended August 31, 2013 August 31, August 31, CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from Tuition and Fees $ 24,377, $ 22,281, Proceeds Received from Customers 83,018, ,958, Proceeds from Sponsored Projects 44,373, ,738, Proceeds from Loan Programs 692, , Proceeds from Other Revenues 2,856, Payments to Suppliers for Goods and Services (48,487,553.00) (52,258,467.04) Payments to Employees for Salaries and Benefits (150,879,291.63) (141,858,917.30) Payments for Other Expenses (12,879,555.77) (21,313,400.88) Net Cash Provided (Used) by Operating Activities (56,927,869.68) (71,708,519.13) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Proceeds from State Appropriations 63,674, ,640, Proceeds from Gifts 2,935, , Proceeds from Other Revenues 2, ,369, Payments for Legislative Transfers (773,000.00) - Payments for Transfers to Other Agencies (344,640.81) (389,491.03) Payments for Transfers to Other Components (1,170,404.00) (1,806,301.56) Payments for Other Uses (787,052.13) (916,054.61) Net Cash Provided (Used) by Noncapital Financing Activities 63,537, ,933, CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from State Appropriations 8,771, ,771, Proceeds from Debt Issuance - 22,981, Proceeds of Transfers from Other Components - 4,301, Payments for Additions to Fixed Assets (7,079,200.39) (10,394,905.02) Payments of Principal on Debt Issuance (5,790,000.00) (4,305,000.00) Payments of Interest on Debt Issuance (3,261,566.62) (4,084,763.55) Payments of Other Costs of Debt Issuance (5,242.59) (148,446.63) Payments for Transfers to Other Components - (12,831,000.00) Net Cash Provided (Used) From Capital & Related Financing Activities (7,364,744.60) 4,289, CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Investments 23,802, , Proceeds from Interest and Investment Income 2,736, ,421, Payments to Acquire Investments (44,462,004.63) (18,800,682.05) Net Cash Provided (Used) by Investing Activities (17,922,453.26) (16,207,721.58) Net Increase (Decrease) in Cash and Cash Equivalents (18,677,735.95) (14,692,908.08) Cash and Cash Equivalents--September 1, 2012 and ,647, ,340, Restatements to Beginning Cash and Cash Equivalents - - Cash and Cash Equivalents--August 31, 2013 and 2012 $ 56,969, $ 75,647, Displayed as: Unrestricted Cash and Cash Equivalents (Statement of Net Position) 35,746, ,368, Restricted Cash and Cash Equivalents (Statement of Net Position) 21,223, ,278, $ 56,969, $ 75,647,

15 August 31, August 31, Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income/(Loss) $ (80,462,867.05) $ (76,429,017.76) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities Depreciation 9,289, ,335, Bad Debt Expense 836, (218,436.67) Operating Income and Cash Flow Categories Classification Differences Changes in Assets and Liabilities: (Increase) Decrease in Receivables 7,033, (625,640.95) (Increase) Decrease in Inventories 43, (46,985.32) (Increase) Decrease in Other Assets 7,186, (853,405.10) Increase (Decrease) in Payables (2,789,049.86) (3,541,282.76) Increase (Decrease) in Due to Other Components 625, (82,622.80) Increase (Decrease) in Deferred Inflows 1,310, , Total Adjustments 23,534, ,720, Net Cash Provided (Used) by Operating Activities $ (56,927,869.68) $ (71,708,519.13) Non Cash Transactions Net Increase (Decrease) in FMV of Investments $ 402, $ (630,848.77) Amortization of Bond Premiums/(Discounts) $ 343, $ 220, Gain/(Loss) on disposal of Capital Assets $ (32,994.22) $ (522,388.55) 11

16 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER Notes to Schedule 1A - Schedule of Expenditures of Federal Awards For the Fiscal Year Ended August 31, 2013 Note 1: Nonmonetary Assistance N/A Note 2: Reconciliation Below is a reconciliation of the total of federal pass-through and federal expenditures as reported on the Schedule of Federal Financial Assistance to the total of Federal revenues and federal grant pass-through revenues as reported in the general-purpose financial statements. Generally, federal funds are not earned until expended; therefore, federal revenues equal federal expenditures for the reporting period. Federal Revenues - per Statement of Changes in Revenues, Expenses and Net Position Federal Grants and Contracts 27,677, Federal Pass-Through Grants from Other State Agencies/Universities - Operating 1,467, Federal Pass-Through Grants from Other State Agencies/Universities - Nonoperating - Subtotal 29,144, Reconciling Items: Health Professions Student Loans, Including Primary Care Loans/ Loans for Disadvantaged Students - New Loans Processed 88, Federal Perkins Loan Program 385, Direct Student Loans 39,243, Total Pass - Through & Expenditures per Federal Schedule 68,863, Note 3: Student Loans Total Loans Ending Balances Federal Grantor/ New Loans Admin. Costs Processed & Adm. of Previous CFDA Number/Program Name Processed Recovered Costs Recovered Year's Loans U.S. Department of Health and Human Services Health Professions Student Loans, including Primary Care Loans/Loans for Disadvantaged Students 88, , ,328, Total U.S. Department of Health and Human Services 88, , ,328, U.S. Department of Education Federal Perkins Loan Program 385, , ,349, Federal Direct Student Loans 39,243, ,243, Total U.S. Department of Education 39,629, ,629, ,349, Total Loans and Recoveries 39,718, ,718, ,677, Note 4: Depository Libraries for Government Publications N/A Note 5: Unemployment Insurance Funds (Agency 320 only) N/A Note 6: Rebates from the Special Supplemental Food Program for Women, Infant and Children (WIC)(Agency 537 only) N/A Note 7: Deferred Federal Income N/A 12

17 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Schedule 1B - Schedule of State Grant Pass-Throughs From/To State Agencies For the Fiscal Year Ended August 31, 2013 Pass-Through From State Agencies: To University of North Texas Health Science Center (763) Cancer Prevention and Research Institute of Texas (Agency 542) Dallas Cancer Disparities Community Coalition: Breast Cancer Prevention Education $ 49, Culturally sensitive HPV Vaccine Education in Tarrant County 60, Cellular Targets of Salinomycin: Novel Cancer Stem-Cell Specific Drug Studied in Yeast 52, The Rural Texas Physician Cancer Screening Education Program in High-Risk Cancer Cluster Regions 173, Comprehensive breast cancer prevention for high-risk women in Dallas County 355, University of Texas System (Agency 720) Joint Admission Medical Program (JAMP) 146, University of North Texas (Agency 752) Texas Environmental Health Institute (TEHI) Asthma Study 12, Allied Health Pathway: A Minority Male Initiative 53, Texas Higher Education Coordinating Board (Agency 781) Family Practice Residency Program 42, College Work Study Program 8, Total Pass-Through From State Agencies (Statement of Revenues, Expenses and Changes in Net Position) $ 953, Pass-Through To State Agencies: From University of North Texas Health Science Center (763) N/A 13

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19 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Schedule 2A - Miscellaneous Bond Information For the Fiscal Year Ended August 31, 2013 Terms of Scheduled Bonds Variable Maturities First Issued Range of Interest First Last Call Description of Issue to Date Interest Rates Rate Year Year Date RFS Refunding Bonds, Series 2003A $ 2,915, % % N/A /15/2013 RFS Refunding and Improvement Bonds, Series ,250, % % N/A /15/2015 RFS Bonds, Series ,650, % % N/A /15/2018 RFS Refunding Bonds, Series 2009B 3,455, % % N/A N/A RFS Refunding Bonds, Series ,540, % % N/A /15/2020 RFS Refunding and Improvement Bonds, Series 2012A 19,680, % % N/A /15/2022 Total $ 91,490, RFS - Revenue Financing System 15

20 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Schedule 2B - Changes in Bonded Indebtedness For the Fiscal Year Ended August 31, 2013 Description of Issue Bonds Bonds Bonds Bonds Outstanding Bonds Matured Refunded or Outstanding 09/01/12 Issued or Retired Extinguished 08/31/13 RFS Refunding Bonds, Series 2003A $ 2,915, $ - $ - $ - $ 2,915, RFS Refunding and Improvement Bonds, Series ,590, ,305, ,285, RFS Bonds, Series ,430, ,410, ,020, RFS Refunding Bonds, Series 2009B 2,025, , ,545, RFS Refunding Bonds, Series ,360, ,230, ,130, RFS Refunding and Improvement Bonds, Series 2012A 19,680, ,365, ,315, Total $ 79,000, $ - $ 5,790, $ - $ 73,210, *Bonds premiums and issuance costs greater than 5% of the par value of the bond issue are capitalized and amortized over the life of the bonds. 16

21 Unamortized Net Bonds Amounts Unamortized Unamortized Gain/(Loss) on Outstanding Due Within Premium * Discount Refunding 08/31/13 One Year $ - $ - $ - $ 2,915, $ ,285, ,370, ,020, ,460, ,545, , ,559, ,689, ,474, ,097, ,412, ,438, $ 4,657, $ - $ - $ 77,867, $ 6,243, Net Bonds Payable per Statement of Net Position $ 77,867,

22 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Schedule 2C - Debt Service Requirements For the Fiscal Year Ended August 31, 2013 Description of Issue Year Principal Interest* Revenue Bonds RFS Refunding Bonds, Series 2003A 2014 $ - $ 159, , , , , ,025, , ,915, , RFS Refunding and Improvement Bonds, Series ,370, , , , , , , , ,030, , ,085, , ,285, ,106, RFS Bonds, Series ,460, ,430, ,510, ,379, ,555, ,334, ,635, ,256, ,685, ,203, ,685, ,757, ,490, ,952, ,020, ,315, RFS Refunding Bonds, Series 2009B , , , , , , , , , , , , ,545, , RFS Refunding Bonds, Series ,295, , ,360, , ,430, , ,500, , ,560, , ,985, , ,130, ,465, RFS Refunding and Improvement Bonds, Series 2012A ,275, , ,315, , ,380, , ,445, , ,525, , ,185, ,983, ,100, , ,090, , ,315, ,881, Total $ 73,210, $ 25,454, * In accordance with the State Comptroller's reporting requirements, the interest amounts on this schedule represent interest expense per the bond amortization schedules rather than interest on a full accural basis. 18

23 UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER (763) Schedule 2D - Analysis of Funds Available for Debt Service For the Fiscal Year Ended August 31, 2013 Pledged and Other Sources and Related Expenditures for FY 2013 Total Operating Pledged Expenses/ and Other Expenditures & Debt Service Description of Issue Sources Capital Outlay Principal Interest * RFS Bonds Series '03A, '05, '09, '09B, '10 & 12A $ 70,496, $ 22, $ 5,790, $ 3,602, Total $ 70,496, $ 22, $ 5,790, $ 3,602, * In accordance with State Comptroller reporting requirements, the interest amounts on this schedule represent interest expense per the bond amortization schedules rather than interest on a full accrual basis. 19

24 UNIVERSITY OF NORTH HEALTH SCIENCE CENTER (763) Schedule 3 - Reconciliation of Cash in State Treasury For the Fiscal Year Ended August 31, 2013 Current Cash in State Treasury Unrestricted Restricted Year Total Local Revenue Fund ,258, ,258, Local Revenue Fund , , Total Cash in State Treasury (Statement of Net Position) $ 4,968, $ - $ 4,968,