DIRECT SUPPORT ORGANIZATIONS AND COMPONENT UNITS ANNUAL FINANCIAL PLANS FISCAL YEAR 2015

Transcription

1 DIRECT SUPPORT ORGANIZATIONS AND COMPONENT UNITS ANNUAL FINANCIAL PLANS FISCAL YEAR 2015 June 5, 2014

2 DSO Annual Financial Plans for FY 2015 INDEX USF Health Professions Conferencing Corporation University Medical Services Association, Inc Medical Services Support Corporation, Inc Sun Dome Inc USF Financing Corporation and USF Property Corporation USF Research Foundation, Inc USF Foundation, Inc USF Alumni Association, Inc [ 2 ]

3 USF Health Professions Conferencing Corporation FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University USF Health Professions Conferencing Corporation (HPCC) trains students and healthcare professionals in the development and maintenance of professional excellence through the ethical, innovative and efficient dissemination of knowledge and enhancement of skills required for clinical practice, research and education. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves Earnings before depreciation in FY14 will increase to $2 million from $1 million in FY13 and will continue to grow in FY15 with new business development. The significant gains from FY14 to FY15 are diluted by the need to replace $1.1 million of nonrecurring FY14 revenues. The CAMLS sales team continues to gain momentum generating almost $5 million in FY14. The new sales and business development director will develop the hospital and healthcare system market segment, identify new market segments and implement a philanthropy strategy. The sales team is projected to generate $6.5 million in FY15. The Tampa Bay Research and Innovation Center (TBRIC) is generating a growing stream of revenue from medical device research, development, testing and evaluation projects. Utilizing the Surgical & Interventional Training Center and Virtual Patient Care Center within CAMLS is a key factor in the TBRIC success story. USF Health programming is another critical part of CAMLS's diverse revenue sources. The state of the art CAMLS facility develops the competence and confidence of tomorrow's healthcare and research professionals. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations Significant capital expenditures are not expected in FY15. Identify Key Risks That Might Affect the 2015 Financial Plan Although HPCC has a diverse customer base, changing regulatory standards and corporate strategies could have a positive or negative affect on the FY15 Plan. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 Fully utilizing CAMLS during non-peak hours such as evenings spreads fixed costs among more customers and increases operating earnings. [ 3 ]

4 USF Health Professions Conferencing Corporation INCOME STATEMENT REVENUES Continuing Professional Development $6,300 $6,300 $0 0 % $6,000 $8,093 CAMLS - USF Health Programming 4,518 4, % 3,571 4,473 CAMLS - Industry, Societies, Healthcare 8,500 6,600 1, % 6,800 4,795 Other HPCC Divisions 1,730 1, % 1,625 1,907 In Kind Donations 500 1,500 (1,000) (67)% 2,000 1,715 Rents, Parking, Rebates, Interest % Total Revenues $21,748 $20,848 $900 4% $20,211 $21,286 EXPENSES Wages and Benefits $4,141 $3,959 $182 5 % $4,469 $3,004 Rents, Utilities, Leases, Maint. & Supplies 3,635 3, % 3,584 3,670 Direct Program Expense 10,356 9,125 1, % 7,010 10,970 Interest (73) (8)% In Kind Expense 500 1,430 (930) (65)% 2,000 1,556 Depreciation-Purchased & Donated Assets 4,400 4, % 4,154 4,164 Total Expenses $23,832 $23,139 $693 3% $22,041 $24,289 OPERATING PROFIT BEFORE NON-CASH CHANGES $(2,084) $(2,291) $207 9% $(1,830) $(3,003) Unrealized Investment Gains (Losses) % 0 0 Total Non-Cash Changes $0 $0 $0 % $0 $0 NET OPERATING PROFIT $(2,084) $(2,291) $207 9% $(1,830) $(3,003) [ 4 ]

5 USF Health Professions Conferencing Corporation STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $(2,084) $(2,291) $207 9 % $(1,830) $(3,004) Adjustments for Non-Cash Activities: Increase in Accounts Rec. and Prepaid % 0 (587) Decrease in Accounts Payable % 0 (543) Increase in Deferred Revenue % Donation of Equipment 0 (70) % 0 (159) Depreciation 4,400 4, % 4,154 4,164 Total Cash From Operating Activities $2,316 $1,989 $ % $2,324 $284 INVESTING ACTIVITIES Capital Expenditures $(100) $(100) $0 0 % $(400) $(738) Net (Purchases) Sales of Investments % 0 1,075 Total Cash From Investing Activities $(100) $(100) $0 0% $(400) $337 FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $0 $0 % $0 $2,010 Principal Paid on Debt (1,979) (2,188) % (1,900) (2,658) Total Cash From Financing Activities $(1,979) $(2,188) $ % $(1,900) $(648) CHANGE IN CASH $237 $(299) $ % $24 $(27) Cash, Beginning of Year (299) (32)% Cash, End of Year $886 $649 $ % $972 $948 [ 5 ]

6 University Medical Service Association, Inc. FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University University Medical Services Association is a not-for-profit entity organized to operate exclusively for scientific and educational purposes for the support of the objectives of USF's College of Medicine in accordance with the College Faculty Practice Plan. It's ongoing goal is programmatic development of business lines that support the education of medical students and residents, promote research in the clinical environment, and provide focused healthcare to the community. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves Call Center Operation Improvements: a) Complete the implementations of the Avaya Telecommunication System; b) Setting operational targets/standards e.g. average speed to answer (15-20 seconds), average total time of call (2min 30secs), time to 3rd available appt (same day for primary care & 10 days for specialist), first call resolution (90%); c) Improving access for patients by making changes to faculty schedules, tapping into the capacity we currently already have available; d) Driving customer service improvements; e) Hiring of a Call Center Director Targeted Recruitment of Local Community Physician Groups that will add to and support the mission of USF Health - Education, Research and Clinical. Grow the volumes at the Villages Specialty Clinic with support from United Healthcare, in conjunction with the Villages Primary Care Health System. Increase volumes for the Healthy Living Clinic in South Tampa as a Medical Home for Type II Diabetic patients with the recruitment of 1 full time FTE faculty to provide 5-day/week coverage. Other Tampa Bay locations will be considered as clinic capacity reaches 75%. Continuation and refinement of the USFPG Pay For Performance program. Full implementation of this program back in FY 2013 had resulted in faculty reviewing for potential opportunities for both revenue growth and expense reductions. Review and evaluate each programmatic component of the organization for enhancement and/or elimination, based on support of USF Health mission, need and alignment with organizational strategic direction. Review operational capacity and clinic room utilization to more efficiently match demand and supply. Continued recruitment of Community Surgeons to increase utilization at the Morsani Ambulatory Surgery Center. Consider Buildout of 4 currently shelled Operating Rooms. Improving partnership efforts with area hospitals. Expansion of a non-teaching Hospitalist Program at TGH beginning July 2014 with 10 new Hospitalist Faculty. Doctors of USF Health Marketing Campaign via web, radio, internet pay per click to strengthen brand name and recognition. Disciplined Cash Investment strategies to continue generating non-operating income/return. Oversight provided by the USFPG Investment Committee. Continued Clinical Department accountability based on Approved and Recognized Budgets. [ 6 ]

7 Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations Build out 4 Operating Room suites at the Morsani ASC. Approximate cost of $800,000. Identify Key Risks That Might Affect the 2015 Financial Plan Clinical IT Initiatives related to ICD-10 and CMS's Clinical Quality Measures Reporting : a) ICD-10 Implementation, Training & Readiness (deadline postponed to Oct 1, 2015); b) Meaningful Use Stage 2 Readiness & Quality Reporting Capability. These changes will alter current business processes and could impact cash flows industry wide. Overall downward pressure on Managed Care rates & continued Medicare reimbursement reductions. Shift to Managed Medicaid effective June 1, uncertain about patient market share shifts between payors. Potential reduction of managed care patient volumes due to continued increase of deductible thresholds and out of pocket expenses. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 Expansion of a non-teaching Hospitalist Program at TGH driving increased consults for USF Surgical Specialties Healthy Living Clinic - Medical Home Initiative Doctors of USF Health Marketing Campaign. [ 7 ]

8 University Medical Service Association, Inc. INCOME STATEMENT REVENUES Net Patient Service 141, ,822 12, % 126, ,729 Grants, Contracts & Awards 50,334 48,902 1,432 3 % 45,359 49,279 UPL/PCIP 5,588 5, % 4,725 5,061 Meaningful Use/PCIP (715) (100)% 889 Other Revenues 26,674 24,370 2,304 9 % 24,761 24,069 Total Revenues $223,696 $208,072 $15,624 8% $201,555 $200,027 EXPENSES Faculty Support $105,220 $98,843 $6,377 6 % $90,000 90,197 Housestaff Support 11,041 11,041 (0) (0)% 11,570 11,063 Other Staff Support 25,625 24, % 26,470 26,515 Contributions to MSSC 59,971 56,562 3,409 6 % 53,697 52,526 Other Expenses 20,703 17,597 3, % 18,275 16,523 Depreciation/Amortization 1,901 1, % 1, Total Expenses $224,461 $210,405 $14,056 7% $201,555 $197,771 OPERATING PROFIT BEFORE NON-CASH CHANGES $(765) $(2,333) $1, % $0 $2,256 Unrealized Investment Gains (Losses) 265 1,451 (1,186) (82)% Gain/(Loss) on Sale/Transfer of Assets 0 45 (45) (100)% 0 0 Total Non-Cash Changes $265 $1,496 $(1,231) (82)% $250 $353 NET OPERATING PROFIT $(500) $(837) $ % $250 $2,609 [ 8 ]

9 University Medical Service Association, Inc. STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $(500) $(837) $ % $250 $2,609 Changes in operating assets and liabilities 4,725 (7,300) 12, % 0 $3,090 Adjustments for Non-Cash Activities: Unrealized Gains (265) (1,200) % (188) (353) Depreciation 1,901 1, % 1, Total Cash From Operating Activities $5,861 $(7,880) $13, % $1,605 $6,293 INVESTING ACTIVITIES Capital Expenditures $(1,500) $(2,000) $ % $(2,000) (1,145) Net (Purchases) Sales of Investments % (2,000) (3,744) Total Cash From Investing Activities $(1,500) $(2,000) $ % $(4,000) $(4,889) FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $(4,300) $4, % $(4,400) $0 Principal Paid on Debt % 0 0 Total Cash From Financing Activities $0 $(4,300) $4, % $(4,400) $0 CHANGE IN CASH 4,361 (14,180) 18, % (6,795) 1,404 Cash, Beginning of Year 7,748 21,929 (14,180) (65)% 21,929 20,525 Cash, End of Year $12,109 $7,748 $4, % $15,134 $21,929 [ 9 ]

10 USF Medical Support Services Corporation FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University Medical Services Support Corporation is a not-for-profit entity organized to operate exclusively for scientific and educational purposes or the support of the objectives of USF's College of Medicine in accordance with the College Faculty Practice Plan. It serves as a clinical support organization to the USF Faculty Practice Plan. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves Tied directly to the support of the Faculty Practice Plan and UMSA. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations N/A Identify Key Risks That Might Affect the 2015 Financial Plan Plans for close monitoring of financial market conditions that may affect interest rates and break-even financial position. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 As MSSC is primarily structured to be a break-even organization, all payroll and operating expenses are funded by UMSA in the form of services revenue. [ 10 ]

11 USF Medical Support Services Corporation INCOME STATEMENT REVENUES Operating/payroll expenses funded by UMSA 59,971 56,562 3,409 6 % 52,447 55,709 Other Revenues 3,000 3, % 2,728 1,565 Total Revenues $62,971 $59,562 $3,409 6% $55,175 $57,274 EXPENSES Faculty support $180 $175 $5 3 % $120 $368 Housestaff support % Staff support 37,800 36,000 1,800 5 % 33,366 34,522 Medical Materials/Supplies 10,250 9, % 8,000 8,722 Interest Paid on Debt 2,600 2,650 (50) (2)% 2,550 2,362 Other Expenses 9,500 9, % 9,966 8,814 Depreciation/Amortization 3,200 3, % 5,291 4,711 Total Expenses $63,580 $60,825 $2,755 5% $59,351 $59,554 OPERATING PROFIT BEFORE NON-CASH CHANGES $(609) $(1,263) $ % $(4,176) $(2,281) Unrealized Gains/Losses 0 (190) % 0 (182) Gain/(Loss) on Sale/Transfer of Assets % 0 (2) Change in Fair Value of Swaps 0 1,800 (1,800) (100)% 0 2,117 Total Non-Cash Changes $0 $1,610 $(1,610) (100)% $0 $1,933 NET OPERATING PROFIT $(609) $347 $(956) (276)% $(4,176) $(348) [ 11 ]

12 USF Medical Support Services Corporation STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $(609) $347 $(956) (276)% $(4,176) $(348) Changes in operating assets and liabilities 2,700 (600) 3, % 0 $(1,780) Adjustments for Non-Cash Activities: Unrealized (Gains)/Losses (190) (100)% Depreciation 3,200 1,350 1, % 5,291 4,711 Total Cash From Operating Activities $5,291 $1,287 $4, % $1,115 $2,765 INVESTING ACTIVITIES Capital Expenditures $(1,500) $(5,700) $4, % $(5,400) (1,596) Net (Purchases) Sales of Investments % 0 0 Total Cash From Investing Activities $(1,500) $(5,700) $4, % $(5,400) $(1,596) FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $4,400 $(4,400) (100)% $4,400 $0 Principal Paid on Debt (1,760) (1,559) (201) (13)% (1,174) (1,644) Total Cash From Financing Activities $(1,760) $2,841 $(4,601) (162)% $3,226 $(1,644) CHANGE IN CASH 2,031 (1,572) 3, % (1,059) (475) Cash, Beginning of Year 523 2,095 (1,572) (75)% 2,095 2,570 Cash, End of Year $2,554 $523 $2, % $1,036 $2,095 [ 12 ]

13 Sun Dome, Inc. FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University Sun Dome, Inc. (SDI) manages and operates a multi-purpose facility known as the Sun Dome Arena on behalf of the University of South Florida (University) to provide the students, faculty, and staff of the University, as well as, the general public an array of cultural, athletic, and educational events. Sun Dome, Inc. also provides ownership and operational support for a University aircraft. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves SDI/Global Spectrum has firm commitments on certain revenue enhancements including a renegotiated and more favorable ticketing agreement, increased rental contribution from University user groups (Athletics, etc.) and increased facility fee surcharges on tickets. In addition, SDI anticipates revenue enhancements and a more focused effort will be geared towards the incremental sale of premium seating (e.g. loge suites) and sponsorship opportunities. SDI/Global Spectrum continues to implement and analyze marketing strategy for utilizing meeting spaces for rental to ancillary based events. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations There are no material capital expenditures planned for the fiscal year Identify Key Risks That Might Affect the 2015 Financial Plan SDI operates in a highly competitive environment for booking and hosting external events, as well as, attracting patrons and disposable income. SDI's market conditions make it susceptible to the conditions at competing facilities (hosted events, consumer amenities, facility investment) and the attractiveness/success of SDI's hosted events. Furthermore, SDI's industry can be highly cyclical and variable including the number of touring artists, new and emerging event types, and maturing and/or declining event types. SDI acknowledges that the Arena is a large complex, multi-purpose facility, therefore the on-going need of maintenance and major repairs are expected to happen over time. Currently, there are various pieces of equipment and machinery that may need repair in the future that will be without warranty, but through partnership with the University solutions will be determined. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 SDI/Global Spectrum continues to develop industry relationships (primarily key event promoters) through attending and participating in national conferences and seminars, and also working with local Chamber of Commerce members to promote and attract events to the Arena. Furthermore, SDI is making a concerted effort in generating multi-year event contracts with current and more profitable events (e.g. American Cheer Power, Harlem Globetrotters, Bellator, etc.) and is focused on obtaining new long-term event partnerships. SDI/Global Spectrum is ensuring the proper long-term care and quality of the University's newly renovated Sun Dome asset by entering into cost effective vendor maintenance and service agreements. This upfront initiative will maintain the facility's competiveness in the marketplace and negate major deferred maintenance needs in the future. Furthermore, SDI staff are properly and consistently monitoring facility systems and equipment by updating electronic record-keeping systems and documenting/addressing needs as issues are identified. [ 13 ]

14 Sun Dome, Inc. INCOME STATEMENT REVENUES Direct Event Revenues $2,774 $2,353 $ % $2,681 $2,130 Ticket Revenues 2,620 2, % 2,550 $2,556 Ancillary Revenues 1,851 1, % 1,711 1,567 Other Revenues % Total Revenues $8,015 $7,147 $ % $7,587 $6,912 EXPENSES Direct Event Costs $4,241 $4,088 $153 4 % $3,964 $3,853 Ancillary Costs 1, % 1, Salaries & Benefits % General & Administrative % Utilities / Repairs / Maintenance % Other Expenses % Depreciation % Net Transfers to USF for Arena Loan % Total Expenses $7,908 $7,355 $553 8% $7,404 $6,956 OPERATING PROFIT BEFORE NON-CASH CHANGES $107 $(208) $ % $183 $(44) Unrealized Investment Gains (Losses) % 0 0 Total Non-Cash Changes $0 $0 $0 % $0 $0 NET OPERATING PROFIT $107 $(208) $ % $183 $(44) [ 14 ]

15 Sun Dome, Inc. STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $107 $(208) $ % $183 $(44) Adjustments for Non-Cash Activities: Depreciation/Amortization % Net Adjustment to Assets (200) (100)% 0 98 Net Adjustment to Liabilities % Decrease in Customer Deposits and Deferred Revenue % 0 (576) Total Cash From Operating Activities $345 $230 $ % $421 $(13) INVESTING ACTIVITIES Capital Expenditures $0 $0 $0 % $0 $0 Net (Purchases) Sales of Investments % 0 0 Total Cash From Investing Activities $0 $0 $0 % $0 $0 FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $0 $0 % $0 $0 Principal Paid on Scoreboard Debt (150) (132) (18) (14)% (170) (133) Total Cash From Financing Activities $(150) $(132) $(18) (14)% $(170) $(133) CHANGE IN CASH % 251 (146) Cash, Beginning of Year 1,579 1, % 1,481 1,627 Cash, End of Year $1,774 $1,579 $ % $1,732 $1,481 [ 15 ]

16 USF Financing Corporation and USF Property Corporation FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University The Financing Corporation is the University's financing arm and is expected to provide low cost, low risk, long-term financing for the University's major capital projects. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves The Financing Corporation is a conduit financing entity, which issues debt on behalf of the University and receives pledged revenues or lease payments from the University's major business units to pay debt service on their capital projects. The Corporation is actively involved with these key business units to ensure that they continue to operate successfully in order to manage their bond obligations, plan for future capital needs and support the University's credit ratings. A key strategy for the Corporation is to create current and lasting financial value for the University, including the development of sound agreement structures, obtaining below-market pricing, managing banking relationships, being responsive to changing capital market conditions and managing financial risks. The $88 M term bank loan and related interest rate swap agreement related to the Series 2012A Housing bonds will expire by October The Corporation is actively seeking interest from its banking partners for a longer term extension of these bonds at a lower cost. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations The Corporation will continue to be responsive to the University's needs for attractive long-term capital financing. Identify Key Risks That Might Affect the 2015 Financial Plan Changing financial outlook for higher education suggests that an alternative approach is needed for university project financing and ownership. Revenue and cost pressures at the state level and at the University and pressure on debt service coverage ratios could affect existing and future financing programs. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 The University successfully reaffirmed its "AA" credit ratings from Moody's and Standard & Poor's during fiscal year This rating is equal to the highest rating of any university in Florida. Strong ratings will provide credit support for future financing transactions on the best possible terms. Currently, the Corporation is working with Tampa Housing on its Public-Private Partnership strategy to develop Andros replacement housing while maintaining the Housing System's "A1 Stable" credit rating on $241 M of outstanding Housing System debt. The initiative will provide a potentially off-credit solution to accelerate the delivery of multi-use student housing with a "village" concept, thereby enhancing the University's competitive profile. Maturities of privately placed term bank loans were matched to expirations of interest rate swaps creating an opportunity to convert $128 M of additional variable rate bonds to fixed rate debt over the next 2-3 years. The Corporation strives to improve the integration of University treasury management of outstanding system debt to hedge risk. Today, USF's investment portfolio exceeds its variable rate debt by 2.0x, up from 1.2x in Improving this coverage ratio can be achieved by continuing to issue only fixed rate debt. [ 16 ]

17 USF Financing Corporation and USF Property Corporation INCOME STATEMENT REVENUES USF housing system gross revenues $41,615 $40,824 $791 2 % $41,641 $42,493 USF athletics system lease revenue 1,948 1,957 (9) (0)% 2,642 1,949 Arena revenue (51) (5)% MSSC lease revenue 4,605 4,761 (156) (3)% 4,585 4,176 HPCC (CAMLS) lease revenue 1,859 1, % 1,859 1,857 Total Revenues $50,942 $50,365 $577 1% $51,515 $50,475 EXPENSES USF housing system operating expenses $19,298 $20,570 $(1,272) (6)% $21,391 $19,202 Management fee % Interest expense 15,224 15,297 (73) (0)% 15,377 14,249 Amortization of deferred charges % Amortization due to refunding of debt (338) (100)% Depreciation 9,383 9,386 (3) (0)% 9,300 9,280 General and administrative expenses (14) (2)% 464 1,376 Total Expenses $45,154 $46,846 $(1,692) (4)% $47,159 $45,665 OTHER REVENUES (EXPENSES) Transfers (to) from DSOs/auxiliaries $(5,793) $(3,524) $(2,269) (64)% $(4,361) $(4,536) Investment income % 5 6 Renewal & replacement expenses % 0 (285) Total Other Revenues (Expenses) (5,788) (3,519) (2,269) (64)% (4,356) (4,815) OPERATING PROFIT BEFORE NON-CASH CHANGES $0 $0 $0 % $0 $(5) INTO USF investment - unrealized gain (loss) 1, % 337 (229) Change in fair value of swaps 0 4,998 (4,998) (100)% 0 11,064 Transfers (to) from affiliates to offset swaps 0 (4,998) 4, % 0 (11,064) Total Non-Cash Changes $1,242 $403 $ % $337 $(229) NET OPERATING PROFIT $1,242 $403 $ % $337 $(234) [ 17 ]

18 USF Financing Corporation and USF Property Corporation STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $1,242 $403 $ % $337 $(234) Adjustments for Non-Cash Activities: Amortization of Deferred Charges % Depreciation 9,383 9,386 (3) (0)% 9,300 9,280 Net Amortization of Premiums / Discounts (102) (102) 0 0 % (102) (102) Change in Fair Value of Swap 0 (4,998) 4, % 0 (11,064) Change in Fair Value of Equity Investment (1,242) (403) (839) (208)% (337) 229 Adjustments for Changes in Operating Assets and Liabilities 18,445 20,921 (2,476) (12)% 14,735 18,489 Total Cash From Operating Activities $27,808 $25,289 $2, % $24,028 $16,694 INVESTING ACTIVITIES Capital Expenditures $0 $(204) $ % $(50) $(6,110) Debt Proceeds - Reimbursement to USF 0 (20,000) 20, % (20,000) 0 Net (Purchases) Sales of Investments (1,515) (1,317) (198) (15)% 1,053 1,398 Total Cash From Investing Activities $(1,515) $(21,521) $20, % $(18,997) $(4,712) FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $20,000 $(20,000) (100)% $20,000 $0 Debt Proceeds - Refunding 0 62,505 (62,505) (100)% 0 158,100 Principal Payments - Refunding 0 (62,505) 62, % 0 (158,100) Deferred Charges on Issuance of Debt 0 (193) % (50) (137) Deferred Charges Written Off (338) (100)% Security Pledged to Counterparty 0 1,330 (1,330) (100)% 0 10,000 Principal Payments (10,815) (9,801) (1,014) (10)% (9,801) (9,071) Interest Payments (15,478) (15,442) (36) (0)% (15,180) (13,716) Total Cash From Financing Activities $(26,293) $(3,768) $(22,525) (598)% $(5,031) $(11,986) CHANGE IN CASH % 0 (4) Cash, Beginning of Year % 3 7 Cash, End of Year $3 $3 $0 0% $3 $3 [ 18 ]

19 USF Research Foundation, Inc. FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University The University of South Florida Research Foundation was established to promote, encourage, and enhance the research activities of University of South Florida faculty, staff and students. The Research Foundation provides a mechanism for the funding of licensed research and development activities. As a DSO we provide broad and flexible financial mechanisms to administer private contracts and grants including corporate and private foundation-sponsored programs. The Research Foundation assists the University in the commercialization of University inventions including license agreements, and receipt and distribution of royalties related to intellectual property. Net proceeds are used to further research and other endeavors at the University. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves The FY15 Financial Plan projects growth in Total Operating Revenues of $313 thousand (3%) over the current year financial forecast. Increases in Rent Revenue (2%), Intellectual Property Fees (22%), and Incubator Program Revenue (5%) are generating this growth in total operating revenue, as revenue from an Economic Development Grant concludes and a use license fee on equipment expires in FY15. The FY 15 Financial Plan projects an increase of $364 thousand (24%) in Investment Income, non-cash unrealized investment gain, based on an estimated 8% return. Notwithstanding market risk, the increase for FY15 is attributed to reallocation of certain investments done in FY14 to increase overall return on assets invested, while maintaining active fund management of the investment portfolios. Positive cash flow of $940 thousand is projected after debt service and purchase of capital expenditures while maintaining Reserve funds of $30M in Operating cash and Investments. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations $492 thousand of building and tenant improvements will be expended to generate additional rent revenues. A significant portion of these improvements would be to secure a new tenant generating estimated total revenue of $1.37M over a 5 year period. If the leases are not awarded, these improvements will not be made. $200 thousand of capital expenditures will be for maintaining functionality of the buildings, to include projects designed to reduce operating utility costs, and preserving the research buildings within the Research Park, as Class A properties. Identify Key Risks That Might Affect the 2015 Financial Plan Market risk in Investment Returns. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 Ongoing discussion with potential new tenant that would generate increased rental revenue as described above. [ 19 ]

20 USF Research Foundation, Inc. INCOME STATEMENT REVENUES Rental Revenue $7,708 $7,523 $185 2 % $7,533 $7,418 Intellectual Property (IP) Revenue 2,700 2,750 (50) (2)% 2,750 3,103 Less - IP Revenue (on behalf of USF) (750) (1,150) % (1,150) (1,173) Intellectual Property Fees & Royalties 1,950 1, % 1,600 1,930 Incubator Program Revenue 1,594 1, % 1,518 1,421 NMR License Revenue (146) (37)% Economic Development Grant (146) (53)% Other Revenues (2) (2)% Total Revenues $11,722 $11,409 $313 3% $11,424 $11,917 EXPENSES Salaries & Benefits $1,150 $1,060 $90 8 % $1,060 $1,000 Contractual Services (23) (11)% Program Expense -IP, Incubator & Univ Support 1,595 1, % 1,462 1,518 Operations - Utilities / Repairs / Maintenance 3,308 2, % 2,983 2,975 Other Operating Expenses (13) (21)% Interest Expense 1,811 1,890 (79) (4)% 1,892 1,899 Depreciation & Amortization 2,913 2, % 2,855 2,820 Total Expenses $11,015 $10,508 $507 5% $10,526 $10,432 OPERATING PROFIT BEFORE NON-OPERATING INCOME $707 $901 $(194) (22)% $898 $1,485 Unrealized Investment Gain 1,902 1, % 1,165 1,766 Total Non-Operating Income $1,902 $1,538 $ % $1,165 $1,766 NET INCOME $2,609 $2,439 $170 7% $2,063 $3,250 [ 20 ]

21 USF Research Foundation, Inc. STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Income $2,609 $2,439 $170 7 % $2,063 $3,250 Adjustments to reconcile net income to net cash provided by operating activities: Adjustments for Non-Cash Items: Depreciation / Amortization Expense 2,913 2, % 2,855 2,820 Non Cash Investment Gain (1,902) (1,538) (364) (24)% (1,165) (1,766) Other Non Cash Revenue (244) (390) % (327) (416) Amortization of Commissions (0) (1)% Change in Assets and Liabilities (net) - - % - (1,796) Total Cash From Operating Activities $3,390 $3,365 $24 1% $3,439 $2,113 INVESTING ACTIVITIES Capital Expenditures $(820) $(1,337) $ % $(1,754) $(1,566) Net Sales (Purchases) of Investments % Transfer from Venture Investment Fund % - - Seed Capital Funding (500) (370) (130) (35)% - - Total Cash From Investing Activities $(820) $(1,337) $ % $(1,754) $(1,164) FINANCING ACTIVITIES Principal Paid on Debt $(1,630) $(1,580) $(50) (3)% (1,580) $(1,435) Total Cash From Financing Activities $(1,630) $(1,580) $(50) (3)% $(1,580) $(1,435) CHANGE IN CASH % 105 (486) Cash, Beginning of Year 2,245 1, % 1,797 2,283 Cash, End of Year $3,185 $2,245 $ % $1,902 $1,797 [ 21 ]

22 USF Foundation, Inc. FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University The University of South Florida Foundation aids and promotes excellence in the educational, research and service activities of USF by seeking, receiving and administering private gifts for the benefit of the University. We enhance resources that support the strategic objectives of the University of South Florida System within a culture of cooperation and collaboration. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves The Foundation completed the first phase of a comprehensive campaign to raise funds for USF to attract world-class scholars and students, build state-of-the-art academic and athletic facilities, and support groundbreaking research activities exceeding the $600 million goal with over $621 million raised. The Foundation has announced a second phase of this Campaign which will continue to focus on our students and faculty by strengthening the academic environment, supporting research, and making the dream of a college education more affordable. During the next five years, the Foundation plans to raise another $400 million for the USF System, for a Campaign total of $1 billion. The Foundation's Investment Committee continues to actively monitor the performance and liquidity of our asset allocation and investment managers and take action when appropriate to enhance the growth and benefit of the endowment to USF over a long-term horizon. Our short-term and long-term returns are consistently in the top quartile amongst our peers. Our goal is to grow the endowment by 8% next year through continued solid investment returns and gifts. The Foundation supports program activities of the University for USF faculty & staff, student scholarships, research initiatives, and capital projects according to donor restrictions. These expenses can be funded by current gifts estimated on the annual plan, existing balances in accounts from gifts and distributions received in prior years, or projected endowment distributions during the year of about $15 million. With the assistance of the Foundation, spending from these sources is directed by the colleges and units designated by our donors as the beneficiaries of their gifts. Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations The Sam & Martha Gibbons Alumni Center joined many other transformative projects as part of the evolution of the USF Tampa campus. The renovation of the Alumni Center was designed to strengthen the overall experience of alumni, donors and students that visit the Center. In addition, upgrades to meeting space and Traditions Hall within the Center will attract the local community to hold various events bringing attention to USF through the newly renovated facility. The project was substantially completed in October 2013 with approximately $500 thousand remaining to be paid related to the project in fiscal year This anticipated expense is disclosed in other operating expenses. Identify Key Risks That Might Affect the 2015 Financial Plan The budget reductions experienced by the USF System have led to fluctuations in the utilization of Foundation funds. While Foundation sources of support like the endowment provide a small percentage of the System's overall budget, this source is critical for many University programs while providing a funding catalyst for others to achieve the University's goals and aspirations. The Investment Committee prudently considers the risks associated with each asset class in addition to the return when conducting its annual review of the endowment asset allocation. The goal of this process is to minimize the volatility of the investment performance and provide a more consistent, reliable stream of income to the University. [ 22 ]

23 University support of the Foundation's operating budget is essential to continue the high level of fundraising demonstrated during the Unstoppable Campaign. Good financial stewardship of this support and other available resources is important to the Foundation's success. The Foundation's cost to raise a dollar remained low at 17 cents per dollar during the length of the Unstoppable Campaign. In other words, for every dollar invested in fundraising during the Campaign, the Foundation has raised over five dollars in return. State funding from the suspended Major Gifts matching program continues to remain unfunded by the legislature with more than $20 million in match funds to enhance the endowment once received. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 The Foundation will continue to support the University's goal surrounding its Student Success initiative with fundraising for scholarships and fellowships. During the Unstoppable Campaign, over $74.2 million was raised for scholarships with $6.5 million of that amount for First Generation Scholarships. Each year the Foundation awards more than $5 million in scholarships to over 2,500 students. Study-abroad scholarships are now supported by an endowment in excess of $1.4 million which provides students the opportunity to obtain a global experience in perpetuity. In addition, the many new athletic facilities supported by fundraising efforts have allowed our student-athletes to be all that they can be. Research and Innovation is continually supported through the Foundation's efforts in securing philanthropic, private research grants. During the Unstoppable Campaign approximately $28.5 million in philanthropic grants were received by the Foundation to support research efforts in areas such as Health, Engineering and Education. In addition, Endowed Chair and Professorship funds provide a predictable, steady stream of earnings to support the Chair or Professors' research efforts in perpetuity. Cultivating university partnerships, both public and private, is a goal of the Foundation. The generosity of our donors ensures an environment rich in research, teaching, learning and discovery. Our partnership with the Tampa Bay Lightning has made the Sports and Entertainment Management Program possible. This program benefits graduate students who will become the future leaders of the sports management field. The Lightning have provided financial support, but also provide access to their executives for realworld learning, classroom space at their facility and paid internships for many of the students. Agilent Technologies' gift of software provides an advantage to our Engineering students by allowing them to learn to use industry-leading software while still in school. The Foundation enhances the economic base for USF through the annual support generated from the Foundation's endowment. The endowment provides over $15 million each year to support USF faculty, students and programs. The endowment along with other gifts for current operations provides over $60 million in annual support to USF. [ 23 ]

24 USF Foundation, Inc. INCOME STATEMENT REVENUES Gifts & Donations $69,500 $58,056 $11, % $69,500 $63,109 Investment Income (Loss) 7,114 8,208 (1,094) (13)% 8,208 6,310 Campaign Support 3,683 3, % 3,683 3,683 Other Revenues 2,183 2,424 (241) (10)% 2,424 2,530 Total Revenues 82,480 71,871 10, % 83,815 75,632 EXPENSES Program Services Salaries & Benefits $16,182 $15,710 $471 3 % $15,236 $16,295 Scholarship & Fellowships 6,671 6, % 6,708 6,723 Service & independent contractors $1,995 1, % 3,821 $5,137 Supplies $2,985 2, % 2,781 $3,349 Gift in kind transfers $29,228 28, % 29,955 $28,389 Other Transfers & Expenses $10,572 16,238 (5,667) (35)% 7,677 $10,299 Total Program Service Expense $67,632 $71,761 $(4,129) (6)% $66,178 $70,192 Fundraising & Operating Expenses Salaries & Benefits 4,575 4, % 4,650 3,850 Service & independent contractors 1,119 1, % 1,150 1,158 Other Transfers & Expenses 2,076 3,987 (1,911) (48)% 1,853 2,359 Total Fundraising & Operating Expenses 7,769 9,307 (1,538) (17)% 7,653 7,367 Total Expenses $75,402 $81,068 $(5,667) (7)% $73,831 $77,559 OPERATING PROFIT BEFORE NON-CASH CHANGES $7,079 $(9,197) $16, % $9,984 $(1,927) Unrealized Gains (Losses) 37,445 33,374 4, % 33,374 41,197 Total Non-Cash Changes $37,445 $33,374 $4, % $33,374 $41,197 NET OPERATING PROFIT $44,524 $24,177 $20, % $43,358 $39,270 [ 24 ]

25 USF Foundation, Inc. STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $44,524 $24,177 $20, % $43,358 $39,270 Adjustments for Non-Cash Activities: Investment (gains) losses (37,445) (33,374) (4,071) (12)% (41,582) (40,655) Change in assets & liabilities, net (14,567) (10,197) (4,370) (43)% (17,473) (11,197) Total Cash From Operating Activities $(7,488) $(19,394) $11, % $(15,697) $(12,582) INVESTING ACTIVITIES Capital Expenditures $0 $0 $0 % $0 $0 Net (Purchases) Sales of Investments 14,761 27,912 (13,151) (47)% 11,210 19,469 Interest dividends reinvested (7,115) (8,208) 1, % 3,806 (6,313) Total Cash From Investing Activities $7,646 $19,704 $(12,058) (61)% $15,016 $13,156 FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $0 $0 % $0 $0 Principal Paid on Debt % 0 0 Total Cash From Financing Activities $0 $0 $0 % $0 $0 CHANGE IN CASH (152) (49)% (681) 574 Cash, Beginning of Year 1,875 1, % 3, Cash, End of Year $2,033 $1,875 $158 8% $3,267 $1,565 [ 25 ]

26 USF Alumni Association, Inc. FINANCIAL PLAN STATEMENT State the DSO's Statutory Mission which Supports the Goals of the University The mission of the USF Alumni Association is to foster a mutually beneficial, lifelong relationship between the University and its alumni; to inspire loyalty and pride among current and future alumni; and to advocate for excellence in teaching, research and public service. List Drivers Improving the 2015 Financial Plan Performance - Focus on Cash Flows and Adequacy of Reserves Growth in sponsorship revenue by securing sponsors for 2014 homecoming and implementing a general "official sponsor of USF Alumni Association" program. This initiative is expected to generate a $42,000 (53%) increase in sponsorship revenue over 2014 forecast. Increase price for Student Alumni Association membership price $20 for a four year membership to $30. This is currently the largest USF student organization with 3,101 students and it is expected to grow to 5,200 in fiscal year Most of the growth is driven by membership that is provided through a USF Federal Credit Union debit card. The increased revenue for FY 2015 associated with this change is expected to be $21,000. Membership solicitation, with a 12% increase in alumni members, growing total membership revenue from $454,000 to $495,000 in FY Describe Material Capital Expenditures in the 2015 Financial Plan - Provide Details and ROI Expectations The Alumni Association has no anticipated capital expenditures during FY Identify Key Risks That Might Affect the 2015 Financial Plan The projected increase in sponsorship and membership revenue doesn't materialize. List Major DSO Initiatives that will Drive Operating Earnings for 2016 and 2017 Increase focus on membership programs, generating a net increase of 3,044 alumni members. Solicitation approaches will include telemarketing, direct mail, electronic communication, social media campaigns, and a potential collaboration with USF Athletics. Further, FY 2015 will be the first full year of renewals for members who received their membership free upon graduation and the continued messaging and awareness will hopefully provide for a 10% or greater renewal rate. End of fiscal year 2015 should see 33,789 total (alumni and students) USFAA members. Continued focus on life membership due to the associated recurring revenue from the life member endowment distribution as well as the benefit of decreased membership renewal expenses. The goal is to increase life membership by 10% in FY Generation of new sponsorships of the USF Alumni Association and some of its key events. Improve engagement at the chapter level by implementing an improvement program that provides for relevant "connection" activities for alumni. Further, establish a mind set of local scholarships and implement at least five new scholarship funds during the fiscal year. Identify advertising partnerships that will produce increased income. [ 26 ]

27 USF Alumni Association, Inc. INCOME STATEMENT REVENUES Program Revenue-Membership $495 $454 $41 9 % $513 $461 Program Revenue % License Plate Revenue % Gifts & Donations % Investment Income (Loss) % Other: Foundation Support (20) (3)% Other: Royalties % Total Revenues $2,624 $2,515 $109 4% $2,573 $2,420 EXPENSES Salaries & Benefits $1,452 $1,387 $65 5 % $1,336 $1,216 Scholarships & Fellowships (11) (22)% Contractual Services (18) (12)% Materials & Supplies 6 8 (2) (25)% 4 6 Program Services % Utilities/Repairs/Maintenance % 5 5 Total Expenses $2,418 $2,333 $85 4% $2,340 $2,159 OPERATING PROFIT BEFORE NON-CASH CHANGES $206 $182 $24 13 % $233 $261 Unrealized Investment Gains (Losses) % Total Non-Cash Changes $401 $330 $71 22 % $330 $268 NET OPERATING PROFIT $607 $512 $95 19 % $563 $529 [ 27 ]

28 USF Alumni Association, Inc. STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Net Operating Profit $607 $512 $95 19 % $563 $529 Adjustments for Non-Cash Activities: Unrealized Gain on Investments (401) (330) (71) (22)% (330) (413) Changes in operating assets/liabilities % Total Cash From Operating Activities $367 $337 $30 9% $388 $238 INVESTING ACTIVITIES Capital Expenditures $0 $0 $0 % $0 $0 Net (Purchases) Sales of Investments (365) (336) (29) (9)% (390) (234) Total Cash From Investing Activities $(365) $(336) $(29) (9)% $(390) $(234) FINANCING ACTIVITIES Proceeds of Long-Term Debt $0 $0 $0 % $0 $0 Principal Paid on Debt % 0 0 Total Cash From Financing Activities $0 $0 $0 % $0 $0 CHANGE IN CASH % (2) 4 Cash, Beginning of Year % 12 8 Cash, End of Year $15 $13 $2 15 % $10 $12 [ 28 ]