STATE UNIVERSITY OF NEW YORK AT BUFFALO ANNUAL FINANCIAL STATEMENTS FISCAL YEARS ENDED JUNE 30, 2013 and 2012

Transcription

1 STATE UNIVERSITY OF NEW YORK AT BUFFALO ANNUAL FINANCIAL STATEMENTS FISCAL YEARS ENDED JUNE 30, 2013 and

2 Table of Contents Financial Statements... 2 Notes to Consolidated Financial Statements... 4 Supplemental Schedules

3 STATE UNIVERSITY OF NEW YORK AT BUFFALO ASSETS, LIABILITIES AND NET ASSETS BALANCE AT JUNE 30, 2013 and 2012 Assets Current assets: Cash and cash equivalents (Note 6) 183,473, ,548,980 Accounts and notes receivable, net (Note 7) 49,680,305 46,601,557 Other receivables (Note 8) 36,313,782 32,353,600 Short-term investments 380,139, ,336,321 Inventory 3,223,177 3,164,266 Prepaid expenses 2,214,511 1,274,223 Total current assets 655,045, ,278,947 Noncurrent assets: Property, plant and equipment, net (Note 11) 1,181,113,883 1,046,304,848 Long-term investments 356,752, ,989,127 Other assets (Note 12) 9,387,573 10,324,988 Total noncurrent assets 1,547,253,674 1,401,618,963 Total assets 2,202,298,993 2,009,897,910 Liabilities and Net Assets Current liabilities: Accounts payable 13,486,348 21,827,916 Accrued expenses 9,079,035 10,577,486 Current portion of long-term debt 10,136,605 8,869,862 Deferred revenue 830, ,932 Other current liabilities 997, ,285 Total current liabilities 34,529,095 42,549,481 Noncurrent liabilities: Long-term debt (Note 13) 219,921, ,097,580 Other long-term liabilities 516,989, ,719,933 Total noncurrent liabilities 736,910, ,817,513 Total liabilities 771,439, ,366,994 Net assets: Unrestricted (1,801,731) (293,491,261) Restricted non expendable 195,495, ,503,198 Restricted expendable 1,237,165,174 1,377,518,979 Total net assets 1,430,859,020 1,245,530,916 Total liabilities and net assets 2,202,298,993 2,009,897,910 See accompanying notes to financial statements 2

4 STATE UNIVERSITY OF NEW YORK AT BUFFALO STATEMENT OF REVENUES, EXPENSES and CHANGES in NET ASSETS FOR THE YEARS ENDED JUNE 30, 2013 and Operating revenues: Tuition and fees 269,505, ,008,067 Less: scholarship allowance (49,899,582) (48,497,227) Net tuition and fees 219,606, ,510,840 Grants and contracts 206,580, ,877,757 Private support and other 85,950,643 55,126,552 Auxiliary enterprises 105,693,121 98,394,805 Hospitals and clinical revenue 18,124,723 15,902,075 Total operating revenues * 635,955, ,812,029 Operating expenses: Instruction 416,235, ,830,133 Research 125,842, ,051,595 Public service 9,295,190 27,792,838 Academic support 75,931,044 73,979,492 Student services 35,430,332 44,643,574 Institutional support 138,146, ,102,321 Operation and maintenance of plant 72,157,441 88,251,832 Depreciation 26,034,335 26,745,872 Scholarships and fellowships 13,585,740 15,903,465 Hospitals and clinics 7,448,955 9,892,488 Auxiliary enterprises 114,323, ,339,842 Total operating expenses 1,034,430,607 1,272,533,452 Non-operating revenues (expenses): State appropriations * 493,813, ,453,049 Endowment and investment income * 77,418,251 (2,864,409) Net realized and unrealized gains(losses) * 8,495,453 (5,431,148) Gifts and other non-operating revenue * 39,745,204 50,340,979 Loss on disposal of plant assets (693,328) (10,653,065) Interest expense on capital related debt (34,975,294) (38,865,818) Total non-operating revenues 583,803, ,979,588 Increase in net assets 185,328,104 (115,741,835) Net assets at the beginning of year 1,245,530,916 1,361,272,751 Net assets at the end of year 1,430,859,020 1,245,530,916 * Campus revenues totaled $1,255 million and $1,202 million for FY2013 and FY2012, respectively. See accompanying notes to financial statements 3

5 1. Reporting Entities STATE UNIVERSITY OF NEW YORK AT BUFFALO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The State University of New York at Buffalo (UB) is comprised of various entities/components that are closely affiliated with UB and therefore are included within the campus financial statements. Decisions on which entities/components to include were based on one or more of the following criteria: (a) is the University financially accountable for the organization, (b) does the organization receive or hold economic resources that are significant to and for the direct benefit of the University or its constituents, (c) is the University entitled to, or can otherwise access, a majority of the economic resources received or held by the organization, (d) is the organization fiscally dependent upon the University. Entities/components that meet these criteria and therefore are included in the financial statements are: State Operating dollars from the approved New York State budget. Income Fund Reimbursable (IFR)/State University Tuition Reimbursable Account (SUTRA) activity which is comprised of self-supporting programs providing services for students and clients and for administering other charged tuition and fees in excess of what is needed to support the state budget. These accounts include fees for contract courses and summer sessions. Construction fund dollars include State and The Research Foundation for SUNY assets that are tracked in the SUNY system along with the depreciation associated with those assets. This also includes State construction in progress and capitalized interest. University at Buffalo Foundation (UBF) whose purpose is to support and promote the educational, research and public service mission of the University. The Research Foundation for SUNY (RF) is a private, nonprofit educational corporation that administers externally funded contracts and grants for and on behalf of SUNY. Auxiliary enterprises: Campus Dining & Shops (CDS) whose purpose is to provide, for the benefit of the campus community, dining services, retail services, vending services, campus ID cards and catering services. Dormitory Income Fund Reimbursable (DIFR), a self-supporting fund used to administer dormitory (residence hall) rental fees and charges. These unaudited financial statements are prepared from information received from the entities listed above, which includes audited financial statements from UBF and CDS. The balance of the financial numbers included in this statement is unaudited. Supplemental schedules include financial information by funding entity. 2. Fiscal Years The campus financial statements incorporate a twelve-month period for all entities. These entities operate under different fiscal periods. The following schedule provides the fiscal year end of the entities included in these financial statements: Funding type State-held funds: State Operating IFR/SUTRA Dormitory IFR State University Construction Fund University at Buffalo Foundation The Research Foundation for SUNY Campus Dining & Shops Fiscal year end June 30 th June 30 th June 30 th March 31 st June 30 th June 30 th May 31 st 4

6 3. Limitation of Consolidated Campus Financial Statements Component parts of the campus financial statements have been audited by independent public accounting firms; however, the consolidation of these statements has not. While an attempt has been made to eliminate inter-entity transactions to the extent practical, it is possible that there exists some duplication of financial information that does not materially distort the accuracy of the financial statements. 4. Use of Estimates In preparing the financial statements certain information was not available either from the State University Construction Fund or from SUNY System Administration. This required the use of estimates in order to present the financial statements in conformity with U.S. generally accepted accounting principles. Actual results could differ from those estimates and will be reflected in next year s financial statements. 5. Fringe Benefits Employee fringe benefits (i.e., health insurance, worker s compensation, retirement and post-retirement benefits) are paid by the State on behalf of UB for employees funded through State Operating accounts. Other State-held funding sources such as IFR and SUTRA along with non-state entities, as outlined in Note 1, pay their own fringe benefits costs. The fringe benefits amount for UB employees paid by State Operating funds is calculated by taking the fringe benefits rate which is determined by the State, and applying it to total eligible personal service and temporary service costs incurred. These imputed costs are included in the financial statements. 6. Cash and Cash Equivalents Cash and cash equivalents represent University at Buffalo funds held in the short-term investment pool (STIP) in the State Treasury or in local depositories by the various entities included in these statements. The following schedule summarizes cash and cash equivalents by funding source: State-held funds: State Operating ($294,634) $878,747 IFR/SUTRA 70,601,194 55,410,708 Dormitory IFR 5,527,086 7,991,296 The Research Foundation for SUNY 70,532,901 58,405,294 University at Buffalo Foundation 29,757,211 29,484,700 Campus Dining & Shops 7,350,160 6,378,235 Total $183,473,918 $158,548,980 Campus Dining & Shops (CDS) has approximately $680,436 and $230,129 in their agency accounts for the fiscal years ended June 30, 2013 and 2012, respectively. CDS is the custodian of these funds that have been raised by various campus units that are associated with, but not controlled by, CDS. Such funds are disbursed at the instructions of the particular campus unit that controls them. The Research Foundation for SUNY (RF) has two pools of cash, unrestricted (non-sponsored) and restricted (sponsored). Unrestricted cash represents the majority of the balance and consists of facilities and administrative (indirect) cost recovery dollars that were not spent at the end of the fiscal year. Restricted cash is the consolidated balance of payments to the University by sponsors in excess of current expenditures for sponsored research projects. 5

7 A portion of the cash falls under the Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosure. This includes deposits held by UB that are not covered by depository insurance and are (a) uncollateralized; (b) collateralized with securities held by a pledging financial institution; or (c) collateralized with securities held by a pledging financial institution s trust department or agency. The table below summarizes the cash that falls under the GASB No. 40 disclosure rules. These are only for funds held by the State or CDS. Other agencies included in these financial statements follow Financial Accounting Standards Board rules and are not included in this analysis. Category A Category B Category C Total Cash and Cash Equivalents: $180,139 $6,767,152 $0 $6,947, Accounts and Notes Receivable Accounts and notes receivable totaled $49,680,305 and $46,601,557 for the fiscal years ended June 30, 2013 and 2012, respectively. This was net of allowances for doubtful accounts of $11,695,810 and $10,923,949 for the fiscal years ended June 30, 2013 and 2012, respectively. Depending upon the funding source these receivables occurred for a number of different reasons. State and auxiliary enterprises receivables occur due to student billings for tuition, fees, and room and board payments. Research receivables arise from sponsored awards where the expenditures exceed the cash received whether the difference is billed to the sponsor or not billed yet. The only notes receivable are student loans awarded from the former State-held endowment fund. These notes have various interest rates and repayment terms. Certain entities carry an allowance for doubtful accounts on their balance sheet. This amount is calculated in different ways depending on the funding source. Each entity writes off balances during the year as they are deemed uncollectible which, in most cases, is based upon the aging of the receivables. 8. Other Receivables The majority of other receivables consist of contributions receivable within UBF. These contributions represent unconditional promises to give. An allowance of $200,000 for uncollectible contributions is estimated for these receivables which are summarized below: Contributions Receivable: Unconditional promises expected to be collected in: Less than one year $27,154,975 $13,433,985 One year to five years 8,033,039 17,363,287 Greater than five years 1,450, ,524 36,638,748 31,782,796 Less: Discount to present value (570,114) (636,399) Allowance for uncollectible contributions receivable (250,000) (200,000) $35,818,634 $30,946,397 As of June 30, 2013, UBF has also received bequest intentions and revocable trusts that management estimates will approximate $59 million. These intentions and conditional promises to give are not recognized as assets in the accompanying consolidated financial statements. Amounts received under these conditional promises to give will generally be restricted for specific purposes stipulated by the donors, primarily endowments for faculty support, scholarships, and general operating support of particular departments and divisions of the University. 6

8 UB has committed Research Foundation (RF) funds to be used for a term loan and extension of credit to UB Associates Inc. (UBA) with the following terms: Term loan The loan is unsecured and in the amount of $11 million. It was repaid via interest until May 2012 and then principal and interest from June 2012 through May The loan s outstanding balance was $8.8 million as of June 30, Extension of credit The extension of credit is unsecured and is in the amount of $2.9 million. Its outstanding balance as of June 30, 2013 was $2.32 million. 9. Endowment and Other Investments Investments of UB are recorded at fair value with the majority of them being long-term. Investment income is reported net of investment fees. Realized and unrealized gains and losses are reflected in the Statement of Revenues, Expenses and Changes in Net Assets. CDS invests primarily in fixed income securities, which are comprised of income funds. These income funds are mutual funds, whose purpose is to provide income from investments. The composition of these investments (excluding cash) is as follows: June 30, 2013 June 30, 2012 CDS UBF CDS UBF Fixed income securities $3,720,488 $118,421,423 $2,246,402 $123,552,568 Domestic equity 162,837, ,268,119 International equity 769, ,808,564 1,785, ,955,707 Alternative investments: Real assets 66,492,002 53,026,427 Venture capital/private equity partnerships 79,821,641 82,292,568 Hedge funds and funds of funds 141,662, ,285,848 Other 2,474,128 2,447,012 $4,489,534 $730,517,765 $4,032,199 $674,828,249 The Research Foundation maintains a diverse investment portfolio and with respect to debt instruments, has a policy of investing primarily in high quality securities. Investments are held with the investment custodian in the Research Foundation s name and could not be broken out by campus for these statements. Therefore, the Research Foundation s investment balances could not be shown in the asset section nor could the unrealized or realized gains be recorded in the Statement of Revenues and Expenses. 10. Inventory The composition of inventory depends upon the entity being examined. For the entities covered within these financial statements, inventory consists of food, beverage, store inventory, dental supplies and chemicals. Inventory is stated at lower of cost (first-in, first-out method) or market. 11. Property, Plant and Equipment Fixed assets are either stated at historical cost if purchased or at fair market value at date of receipt if acquired by gift. Fixed assets are shown net of accumulated depreciation of $893,284,502 and $863,289,268 as of June 30, 2013 and 2012, respectively. The majority of the University depreciates its assets using the straight-line method over the assets estimated useful life. In general, the buildings and components are depreciated between years, capital equipment, furniture, and fixtures lives range from 4 to 15 years and library acquisitions are depreciated over 10 years. 7

9 There continues to be a one year lag between the Property, Plant and Equipment amounts recorded here in these statements due to the availability of the SUNY figures for our University. SUNY s numbers are finalized in the spring of the following year, while the numbers used for these statements are compiled in the fall, after the fiscal year closes (fiscal year numbers are available in March 2014, so fiscal year numbers are used instead). 12. Other Assets Fine art collections are included within the other assets reported in the financial statements and are valued at $10,025,754 and $9,854,042 for the fiscal years ended June 30, 2013 and 2012, respectively. These assets make up the majority of the University s other assets. 13. Long-term liabilities The University at Buffalo and its affiliated entities has entered into several debt obligations to finance various capital facilities or large equipment purchases. Total long-term and short-term obligations are summarized below: Campus Dining & Shops (CDS) Unsecured note payable related to a related party in annual principal payments and semi-annual interest payments totaling $951,091 per year, based on a fixed interest rate of 4.81% through June 30, $9,529,910 - Note payable to a bank in monthly installments of principal and interest of $53,454, based on a fixed interest rate of 2.62% through April This note is secured by investments with a net book value of $2,906,797. University at Buffalo Foundation (UBF ) 2,383,005 $2,952,878 Village of Kenmore Housing Authority bonds payable in monthly installments of $47,516 through January 2028, including interest at 4.95%. (Flickinger Project) 5,886,825 6,154,224 Town of Amherst Industrial Development Agency bonds payable in annual principal installments that escalate through maturity in August 2031, plus interest ranging from 4.30% to 5.25% adjusted annually, net of discount of $0 in 2013 and $72,184 in (Flint Village Projects) Town of Amherst Industrial Development Agency bonds payable in annual principal installments that escalate through maturity in August 2032, plus interest ranging from 3.00% to 5.00% adjusted annually, net of discount of $0 in 2013 and $115,343 in (Creekside Village Projects) - 22,142,816-11,899,657 8

10 University at Buffalo Foundation (UBF ) continued Town of Amherst Development Corporation bonds payable in annual principal installments that escalate through maturity in October 2045, plus interest ranging from 2.25% to 5.00% adjusted annually, net of discount of $25,411 in 2013 and $13,438 in (Greiner Hall Project and Hadley Village Refunding) Town of Amherst Development Corporation bonds payable in annual principal installments that escalate through maturity in October 2035 plus variable rate of interest. Interest rates ranged from 0.08% to 0.23% and 0.04% to 0.28% for the years ended June 30, 2013 and 2012, respectively. (South Lake Village) Town of Amherst Development Corporation bonds payable in monthly principal installments that escalate through maturity in August 2042 plus variable rate of interest. Interest rates ranged from 1.53% to 1.56% for the year ended June 30, 2013 and 1.56% from the date of issue through June 30, (Flint Village and Creekside Village Refunding) 79,909,589 81,781,563 23,035,000 23,510,000 31,805,000 32,465,000 Operating Line of Credit payable on demand and bearing interest at 1.5% below the bank s prime rate, (1.75% at June 30, 2013 and June 30, 2012). 25,000,000 25,000,000 State NYPA Phase I Chillers loan payable in monthly installments of $16,100 through maturity June Variable interest rate, 0.86% for and 0.88% for , ,499 NYPA Phase II HVAC and outdoor lighting loan payable in monthly installments of $28,245 through maturity January Variable interest rate, 0.86% for and 0.88% in ,933,898 3,144,879 Dorm Rehab projects various dormitory projects through Dormitory Authority of the State of New York (DASNY) bond or revolving loans with the Dormitory Authority. Maturity of these borrowings end in June 2031 with varying interest rates. 49,014,795 53,166,926 Total debt obligations $230,058,584 $262,967,442 Current portion of long-term debt (10,136,605) (8,869,862) Long-term debt $219,921,979 $254,097,580 Campus Dining and Shops has available a $1,000,000 unsecured bank line of credit, with interest at the prime rate minus 0.50%. There are no amounts outstanding at May 31, 2013 or The Industrial Development Agency bonds, which had a balance of $3,350,000 as of May 31, 2011, were paid in full during the fiscal year. In June 2012, UBFFSH issued $32,465,000 Town of Amherst Development Corporation Bonds (Flint Village and Creekside Village). These bonds were issued to provide funds for the refunding of the outstanding principal of the original bonds used to finance the respective projects including funds needed for the costs incidental to their issuance. All debt covenants were compiled for all agencies having debt. 9

11 14. Other Post-Employment Benefits (OPEB) SUNY, in compliance with GASB 45, records their annual liability and expense for Other Post- Employment Benefits (OPEB) on their financial statements. These benefits, as defined by GASB 45, include postemployment healthcare, as well as other forms of postemployment benefits (for example, life insurance) when provided separately from a pension plan. Since GASB 45 calls for disclosure and recognition of these benefits and there is a large portion of SUNY s OPEB costs that are unfunded by the State, the University at Buffalo s portion of the liability for these benefits has been recorded within these financial statements. The annual amounts of the unfunded actuarial accrued liability (UAAL) are recorded in other long-term liabilities with the offset being booked to expenses. The expense amount was allocated to the functional expense classifications consistent with the fringe benefit rate applied to personal service costs. The OPEB liability amounted to $55,133,725 for and $57,196,478 for The amount attributable to the University is obtained from SUNY and is based on the University s share of personal service costs. The accumulated liability for the University at Buffalo as of June 30, 2013 was $389,979, Commitments UB and its affiliated entities committed to numerous operating leases covering real property and equipment. Rental expenditures reported for the years ended June 30, 2013 and 2012 under such operating leases were approximately $2,350,561 and $1,915,822 respectively. The following is a summary of rental commitments under non-cancelable real property and equipment leases with terms exceeding one year: Year ending June 30, Amount 2014 $1,610, ,147, ,149, , , ,128,502 Total $5,626,486 The above schedule does not include The Research Foundation for SUNY. Their rental payments amounted to $276,909 and $360,818 for the fiscal years ended June 30, 2013 and 2012, respectively. Any amounts paid between State and UBF have been eliminated. 10

12 16. Subsequent Events The University entered into a financial arrangement (dated November 5, 2013) with the State University Construction Fund (SUCF) to fund the construction of the new School of Medicine and Biomedical Sciences building in downtown Buffalo. The estimated total cost of the project is $375 million and funding will be derived from the following categories: Source State Campus Existing Campus Appropriations $50,000,000 SUNY Match 15,000,000 Urban Development Corp. Funds 20,000,000 Debt Service 215,000,000 UB School of Medicine Funds $25,000,000 UB Philanthropy 50,000,000 Totals $300,000,000 $75,000,000 11

13 State University of New York at Buffalo Assets, Liabilities and Net Assets by Entity as of June 30, 2013 (In thousands) Assets State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total Current assets: Cash and cash equivalents ($294) $70,601 $29,757 $70,533 $12,877 $183,474 Accounts and notes receivable, net 18,792 1,305 3,464 22,916 3,203 49,680 Other receivables , ,314 Short-term investments , , ,140 Inventory 1, ,223 Intercompany receivables 2,349 (30,369) (10,909) 15,829 23,100 0 Prepaid expenses 1, ,051 2,214 Total current assets 23,817 41, , ,278 44, ,045 Noncurrent assets: Property, plant and equipment, net 954,472 53, ,991 3,469 13,466 1,181,114 Long-term investments , , ,752 Other assets , ,388 Total noncurrent assets 954,549 53, ,786 3,469 14,734 1,547,254 Total assets $978,366 $95,712 $955,835 $112,747 $59,639 $2,202,299 Liabilities and Net Assets Current liabilities: Accounts payable $6,215 $0 $6,838 $0 $433 $13,486 Accrued expenses 0 0 5,128 2,665 1,286 9,079 Current portion of long-term debt 5, , ,078 10,137 Deferred revenue Other current liabilities Total current liabilities 11, ,851 2,665 4,120 34,529 Noncurrent liabilities: Long-term debt 46, , , ,922 Other long-term liabilities 467,039 19,299 30, ,989 Total noncurrent liabilities 513,870 19, , , ,911 Total liabilities 525,763 19, ,758 2,665 14, ,440 Net Assets: Unrestricted (55,134) 0 16, ,222 (1,802) Restricted - nonexpendable , ,496 Restricted - expendable 507,737 76, , ,082 7,462 1,237,165 Total net assets 452,603 76, , ,082 44,684 1,430,859 Total liabilities and net assets $978,366 $95,712 $955,835 $112,747 $59,639 $2,202,299 12

14 State University of New York at Buffalo Assets, Liabilities and Net Assets by Entity as of June 30, 2012 (In thousands) Assets State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total Current assets: Cash and cash equivalents $879 $55,411 $29,485 $58,405 $14,370 $158,550 Accounts and notes receivable, net 18,872 1,428 3,884 19,309 3,109 46,602 Other receivables , ,407 32,353 Short-term investments , , ,336 Inventory 1, ,164 Intercompany receivables 1,111 (22,834) (7,714) 9,817 19,620 0 Prepaid expenses 1, ,274 Total current assets 24,020 34, ,278 87,531 41, ,279 Noncurrent assets: Property, plant and equipment, net 840,587 45, ,673 4,152 2,724 1,046,305 Long-term investments , , ,989 Other assets , ,325 Total noncurrent assets 840,664 45, ,537 4,152 5,097 1,401,619 Total assets $864,684 $79,563 $927,815 $91,683 $46,153 $2,009,898 Liabilities and Net Assets Current liabilities: Accounts payable $7,468 $0 $12,629 $0 $1,731 $21,828 Accrued expenses 0 0 5,904 3,408 1,266 10,578 Current portion of long-term debt 5, , ,870 Deferred revenue Other current liabilities Total current liabilities 12, ,523 3,408 4,113 42,550 Noncurrent liabilities: Long-term debt 52, , , ,098 Other long-term liabilities 410,787 20,417 36, ,719 Total noncurrent liabilities 462,811 20, , , ,817 Total liabilities 475,317 20, ,729 3,408 6, ,367 Net Assets: Unrestricted (334,846) 0 10, ,970 (293,491) Restricted - nonexpendable , ,503 Restricted - expendable 724,213 59, ,198 88,275 8,687 1,377,519 Total net assets 389,367 59, ,086 88,275 39,657 1,245,531 Total liabilities and net assets $864,684 $79,563 $927,815 $91,683 $46,153 $2,009,898 13

15 State University of New York at Buffalo Revenues and Expenses by Entity Fiscal Year Ended June 30, 2013 (In thousands) State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total Revenues: Tuition and fees, net $167,957 $44,773 $6,876 $0 $0 $219,606 State appropriations 493, ,813 Grants and contracts 45,529 4, , ,580 Private support and other 11,849 39,299 48,709 9,034 5, ,482 Endowment and investment income , ,914 Auxiliary enterprises 0 13,325 28, , ,693 Hospitals and clinical revenue 0 3,616 14, ,125 Other 11, ,214 Total revenues 730, , , ,980 70,382 1,255,427 Expenses by function: Instruction 307,793 38,825 51,645 17, ,235 Research 21,950 10, , ,842 Public service 3, , ,295 Academic support 69,419 6, ,931 Student services 17,950 17, ,430 Institutional support 74,376 14,189 24,514 25, ,147 Operation and maintenance of plant 70, ,158 Depreciation 24, ,104 26,034 Scholarships and fellowships 23,810 (17,122) 5,814 1, ,586 Hospitals and clinics 4,491 2, ,449 Auxiliary enterprises 13,087 13,466 23, , ,326 Interest expense 34, ,975 Other expenses Total expenses 667,226 87, , ,172 65,355 1,070,099 Expenses by type: Salaries 337,555 10,788 32,221 64,324 19, ,290 Employee fringe benefits 227,122 11,465 11,952 21,959 8, ,930 Supplies (18,496) 36,515 6,487 13,410 13,866 51,782 Travel 2,085 4,877 6,163 3,747 (105) 16,767 Contractual services 37,319 15,249 11,387 29,705 5,711 99,371 Insurance and professional fees 0 0 1, ,086 Rent, utilities and lease 16, , ,258 22,522 Depreciation 24, , ,104 34,153 Equipment, repairs and maintenance 5,968 5, ,005 9,334 27,180 Management fees and subscriptions 0 0 2,668 4, ,235 Interest expense 34, , ,846 Other expenses 21 3,387 16,088 (123) 2,564 21,937 Total expenses 667,226 87, , ,172 65,355 1,070,099 Increase (decrease) net assets $63,236 $17,267 $77,990 $21,808 $5,027 $185,328 14

16 State University of New York at Buffalo Revenues and Expenses by Entity Fiscal Year Ended June 30, 2012 (In thousands) State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total Revenues: Tuition and fees, net $154,809 $33,266 $5,436 $0 $0 $193,511 State appropriations 600, ,453 Grants and contracts 43,848 4, , ,546 Private support and other 2,332 27,126 58,608 2,468 5,245 95,779 Endowment and investment income (8,516) 0 20 (8,296) Auxiliary enterprises 250 7,972 29, ,487 98,395 Hospitals and clinical revenue 0 3,869 12, ,902 Other 8, ,020 Total revenues 809,912 76,632 97, ,767 65,752 1,202,310 Expenses by function: Instruction 447,085 43,050 51,775 13, ,830 Research 32,886 5, , ,052 Public service 5,344 17, , ,793 Academic support 66,703 6, ,979 Student services 29,965 13, ,644 Institutional support 108,799 13,679 29,564 23, ,103 Operation and maintenance of plant 93,769 (6,294) ,252 Depreciation 25, ,746 Scholarships and fellowships 22,223 (12,508) 5,148 1, ,903 Hospitals and clinics 6,983 2, ,892 Auxiliary enterprises 35,568 3,266 21, , ,391 Interest expense 38, ,866 Other expenses 2,377 (3) (4,000) 8, ,601 Total expenses 915,831 87, , ,943 54,604 1,318,052 Expenses by type: Salaries 330,833 10,386 33,903 68,176 18, ,074 Employee fringe benefits 497,774 9,504 11,487 22,873 8, ,117 Supplies (34,101) 42,741 8,298 13,062 11,718 41,718 Travel 2,811 3,368 6,142 3,826 (61) 16,086 Contractual services 34,053 14,969 13,749 27,241 5,692 95,704 Insurance and professional fees 0 0 2, ,513 Rent, utilities and lease 14, , ,320 19,435 Depreciation 25, , ,640 Equipment, repairs and maintenance 5,723 3, ,775 6,365 32,625 Management fees and subscriptions , ,750 Interest expense 38, , ,833 Other expenses (48) 3,083 12,691 (1,307) ,557 Total expenses 915,831 87, , ,943 54,604 1,318,052 Increase (decrease) net assets ($105,919) ($10,978) ($6,817) ($3,176) $11,148 ($115,742) 15

17 Prepared by Financial Services, a division of University Business Services 16