Review of the FY 2016 TTU System Combined Annual Financial Report Gary Barnes, Vice Chancellor and CFO May 2017 Page 1
Revenues, Expenses and Changes in Net Position as of August 31 (in thousands) 2012 2013 2014 2015 2016 Beginning Net Position (September 1) $ 2,420,617 $ 2,454,563 $ 2,603,698 $ 2,685,809 $ 2,726,175 Revenues Tuition and Fees 336,746 347,940 348,344 380,658 404,505 Patient Fees 222,879 230,757 244,555 254,662 262,154 Sales and Services - Room Rent, Meals, Athletics 141,233 152,217 162,286 181,365 185,717 Grants and Contracts 305,578 316,686 347,152 346,389 400,650 Other Revenue 5,569 27,146 31,842 23,203 50,281 Legislative Appropriations 418,179 399,903 466,857 468,174 514,999 Private Gifts 97,522 109,897 95,216 83,318 128,720 Investment Income 19,939 60,532 113,740 56,594 80,571 Total Revenue 1,547,646 1,645,078 1,809,991 1,794,362 2,027,597 Expenses Salaries, Wages & Benefits 878,683 928,786 996,509 1,049,394 1,105,158 Professional Fees and Services 58,923 63,000 64,091 64,588 76,200 Travel 23,953 27,902 31,104 31,396 33,651 Materials and Supplies 79,802 80,734 85,731 90,832 91,457 Utilities, Rentals & Leases 61,121 62,266 62,747 65,952 69,172 Repairs and Maintenance 33,957 37,639 37,706 38,556 39,019 Interest Expense on Capital Assets, Depreciation 138,728 148,285 148,142 154,914 142,004 Scholarships 74,215 65,019 65,817 69,515 77,794 Other Operating Expenses 86,536 111,808 116,649 129,511 170,150 Total Expenses 1,435,919 1,525,439 1,608,496 1,694,659 1,804,604 Other Increase / (Decrease) in Fair Market Value of Investments 20,344 29,496 47,998 (59,284) (27,250) Prior Period Adjustment (98,125) - (167,383) (53) 6,075 Change in Net Position 132,072 149,135 249,494 40,419 195,742 Ending Net Position (August 31) $ 2,454,563 $ 2,603,698 $ 2,685,809 $ 2,726,175 $ 2,927,992 Page 2
Sources of Revenue, FY 2016 Investment Income, 4% Other Revenue, 2% Private Gifts, 6% Sales and Services - Room Rent, Meals, Athletics, 9% Patient Fees, 13% Legislative Appropriations, 25% Tuition and Fees, 20% Revenues (in thousands) Legislative Appropriations $514,999 25% Tuition and Fees $404,505 20% Grants and Contracts $400,650 20% Patient Fees $262,154 13% Sales and Services - Room Rent, Meals, Athletics $185,717 9% Private Gifts $128,720 6% Investment Income $80,571 4% Other Revenue $50,281 2% Total Revenue $2,027,597 100% Grants and Contracts, 20% Page 3
Total Expenses, FY 2016 Utilities, Rentals & Leases, 4% Repairs and Maintenance, 2% Travel, 2% Professional Fees and Services, 4% Scholarships, 4% Materials and Supplies, 5% Interest Expense on Capital Assets, Depreciation, 8% Salaries, Wages & Benefits, 61% Expenses (in thousands) Salaries, Wages & Benefits $1,105,158 61% Other Operating Expenses $170,150 9% Interest Expense on Capital Assets, Depreciation $142,004 8% Materials and Supplies $91,457 5% Scholarships $77,794 4% Professional Fees and Services $76,200 4% Utilities, Rentals & Leases $69,172 4% Repairs and Maintenance $39,019 2% Travel $33,651 2% Total Expenses $1,804,604 100% Other Operating Expenses, 9% Page 4
Net Position, FY 2016 Encumbrances/Inve ntories/prepaid Expenses, 3% Capital Projects and Construction in Progress, 4% Self-Insurance and Practice Plan Funds, 4% Unrestricted, 9% Higher Education Assistance Fund (HEAF), 2% Scholarships and Student Support, 2% Debt Service, 1% Invested in Capital Assets, Net of Related Debt (buildings, land, equipment), 31% Net Position (in thousands) Invested in Capital Assets, Net of Related Debt (buildings, land, equipment) 900,671,764 31% Endowments and Quasi Endowments 831,241,638 28% Externally Restricted (grants, contracts, loan funds) 447,665,272 15% Unrestricted 275,341,966 9% Self-Insurance and Practice Plan Funds 113,316,940 4% Capital Projects and Construction in Progress 107,596,869 4% Encumbrances/Inventories/Prepaid Expenses 93,823,146 3% Higher Education Assistance Fund (HEAF) 62,978,670 2% Scholarships and Student Support 61,145,877 2% Debt Service 34,210,627 1% Externally Restricted (grants, contracts, loan funds), 15% Endowments and Quasi Endowments, 28% Total Net Position 2,927,992,769 100% Page 5
Operating Expenses by NACUBO Function, FY 2016 Institutional Support, 7% Depreciation and Amortization, 7% Hospital and Clinic, 5% Operations and Maintenance of Plant, 5% Auxiliary Enterprises, 8% Scholarships and Fellowships, 4% Public Service, 8% Student Services, 3% Research, 11% Instruction, 28% Academic Support, 15% Operating Expenses by NACUBO Function (in thousands) Instruction $497,677 28% Academic Support $275,775 15% Research $191,814 11% Public Service $150,017 8% Auxiliary Enterprises $138,794 8% Depreciation and Amortization $122,625 7% Institutional Support $117,749 7% Operations and Maintenance of Plant $86,379 5% Hospital and Clinic $82,968 5% Scholarships and Fellowships $63,155 4% Student Services $58,268 3% Total Operating Expenses $1,785,225 100% Page 6
Key Financial Indicators FY 2016 Key Financial Ratios - Texas University Systems Peer Comparison TTU System TSU System UH System UNT System TAMU System UT System Moody's/S&P/Fitch Ratios Aa1/AA+/AA+ Aa2/NR/AA Aa2/AA/NR Aa2/NR/AA Aaa/AAA/AAA Aaa/AAA/AAA Enrollments (Fall 2016) 45,857 63,799 53,456 30,550 120,778 154,657 Net Tuition & Fees per Student $8,721 $8,420 $10,805 $11,396 $9,426 $10,791 Total System Budgets (billions) $1.9 $1.3 $1.5 $1.1 $4.2 $16.9 Spendable C & I to Total Debt (X) 2.5 1 0.08 0.08 1.7 2.4 Higher is Better Total Debt to Operations Revenue (X) 0.3 0.6 0.8 0.6 0.9 0.5 Lower is Better Debt Service to Operation Expenses (%) 3.5 10.9 6.7 5.6 7.4 3.3 Lower is Better 3-Year Average Debt Service Coverage (X) 4.1 1.8 2.6 2.3 2.5 4.5 Higher is Better 3-Year Average Operation Margin (%) 6.8 5.9 4.4 3.9 3.1 3.8 Higher is Better Operating Cash Flow Margin (%) 16.9 18.9 15.5 13.3 15.5 17 Higher is Better Spendable C&I to Operation Expense (X) 0.9 0.7 0.7 0.5 1.5 1.2 Higher is Better Source: Moody's Investors Service MFRA Data Page 7
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