Indiana State University Financial Report

Indiana State University Financial Report For the year ending June 30, 1989

The Financial Report is published by the Office of the Vice President for Business Affairs and Treasurer, Indiana State University, Terre Haute, Indiana 47809

Indiana State University 1989 Financial Report For the year ending June 30, 1989

September 29, 1989 To the President and Board of Trustees Indiana State University 1 am pleased to submit the annual financial report for Indiana State University, covering the fiscal year ended June 30, 1989. The University's accounts are maintained in accordance with the principles of Fund Accounting and accounts are separately maintained for each fund. However, in the accompanying financial statements, all fund accounts that have similar characteristics have been combined into fund groups. Audits are performed on a regular basis by the State Board of Accounts for all State and Federal monies. The State Board of Accounts has completed the audit for fiscal year ending June 30, 1989, and has issued an unqualified opinion. The audit is conducted under requirements set forth by the AICPA, NACUBO, and the U.S. Department of Education guide on audits of Student Financial Assistance. This report is a complete and permanent record of the financial status of the University for the period stated. Respectfully, Dennis C. Graham Vice President for Business Affairs and Treasurer 2

BOARD OF TRUSTEES ROBERT D. GREEN PRESIDENT Vincennes, Indiana Term 1986-1992 BILL C. ANTHIS VICE PRESIDENT Fort Wayne, Indiana Term 1985-1993 TIMOTHY J. O'NEILL ASSISTANT SECRETARY Indianapolis, Indiana Term 1987-1991 S. CRAIG PEMBERTON Lynnville, Indiana Term 1989-1991 DAN R. WINCHELL Indianapolis, Indiana Term 1979-1991 DONALD E. SMITH SECRETARY Terre Haute, Indiana Term 1987-1991 REX E. BREEDEN Columbus, Indiana Term 1973-1992 JOHN STELLE Brazil, Indiana Term 1989-93 CHARLOTTE ZIETLOW Bloomington, Indiana Term 1989-93 UNIVERSITY OFFICIALS RICHARD G. LANDINI President Indiana State University RICHARD M. CLOKEY Vice President for Academic Affairs PAUL T. EDGERTON Vice President for Student Affairs ORIN L. DAHL Vice President for Development and Public Affairs DENNIS C. GRAHAM Vice President for Business Affairs and Treasurer (Beginning 7-1-89) DONALD M. HILT Vice President for Business Affairs and Treasurer (On retirement leave 7-1-89 to 12-31-89) 3

Current Fund Dollar Year Ended June 30, 1989 Revenues Expenditures Other Educational and General 3' Sponsored Research and Programs Sponsored Research and Programs 9' Student Aid Auxiliary Enterprises Sales & Services 13' Institutional Support Student Fees 13' Operation and Maintenance of Plant 19' Auxiliary Enterprises 53' 43' Governmental Appropriation Instructional, Departmental Research and Support 4

AUDITORS' OPINION TO: THE OFFICIALS OF INDIANA STATE UNIVERSITY We have audited the accompanying statements of financial condition of Indiana State University as of June 30, 1989, and the related statements of changes in fund balances and of current funds revenues, expenditures and transfers for the year then ended. These financial statements are the responsibility of the University's administration. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the administration, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have previously audited and reported upon the June 30, 1988 financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Indiana State University at June 30, 1989 and the changes in fund balances and the current funds revenue, expenditures and transfers for the year then ended in conformity with generally accepted accounting principles. STATE BOARD OF ACCOUNTS OCTOBER 2, 1989

INDIANA STATE UNIVERSITY Balance Sheet Year Ended June 30, 1989 Current Funds Auxiliary Assets Unrestricted Designated Enterprises Restricted Total Cash and Investments $ 7,178,158 $ 2,937,123 $ 4,256,082 $ 14,371,363 Cash and Investments Held by Trustee Accrued Interest 610,261 3,387 613,648 Accounts Receivable-Net 1,548,987 1,643,725 877,394 $ 969,794 5,039,900 Notes Receivable Net and Accrued Interest Inventories 750,162 543,205 142,781 1,436,148 Prepaid Expenses 261,917 67 7,500 269,484 Due From Other Funds 319,936 319,936 Campus Land Educational Buildings Heating Plant and Tunnels Auxiliary Enterprise Buildings Educational Equipment Auxiliary Enterprise Equipment Communications Equipment Total Assets 10,059,160 5,734,314 5,279,711 977,294 22,050,479 Liabilities and Fund Balances Accounts Payable 121,816 41,586 199,876 29,477 392,755 Accrued Payroll and Deductions 5,761,745 13,555 5,775,300 Deposits 3,562 288,192 291,754 Accrued Vacation 1,174,916 1,030 283,235 31,953 1,491,134 Due To Other Funds 951,134 30,000 289,936 1,271,070 Bonds Payable Deferred Income 60,851 161,099 221,950 Other 12,546 223 12,769 Funds Held in Custody for Others Total Liabilities 7,122,890 1,006,296 976,180 351,366 9,456,732 Fund Balances Allocated 2,913,448 468,415 513,085 625,928 4,520,876 Unallocated 22,822 4,259,603 3,790,446 8,072,871 Total Fund Balance 2,936,270 4,728,018 4,303,531 625,928 12,593,747 Total Liabilities and Fund Balances $ 10,059,160 $ 5,734,314 $ 5,279,711 $ 977,294 $ 22,050,479 See accompanying notes to the financial statements.

Loan Endowment Agency Funds Funds Funds $ 923,162 $ 1,063,706 $ 654,053 $ 6,228 4,435 1,031 78 1,187 62,097 4,670,022 5,599,490 1,069,328 717,181 Plant Funds 14,300,548 7,950,641 109,069 9,620 951,134 17,551,436 86,753,909 10,345,972 61,309,208 43,392,131 5,566,425 3,625,881 251,865,974 223 190 9 43,467 370 2,763 57,785,000 714,039 223 190 717,181 57,828,467 5,599,267 1,069,138 5,599,267 -------------------- 1,069,138 -------------------- 11,080,833 182,956,674 194,037,507 $ 5,599,490 $ 1,069,328 $ ' 717,181 $ 251,865,974 ==~= 7

INDIANA STATE UNIVERSITY Statement of Changes in Fund Balances Year Ended June 30, 1989 Revenues and Other Additions Unrestricted Designated Current Funds Auxiliary Enterprises Restricted Total Current Fund Revenues $ 80,004,200 $ 5,464,402 $ 22,163,863 $107,632,465 Governmental Appropriations Governmental Grants and Contracts $ 8,399,215 8,399,215 Private Gifts, Grants and Contracts 1,467,552 1,467,552 Student Fees Loan Interest Investment Income Debt Service Deposits Bond Indebtedness Proceeds Addition to Plant Retirement of Indebtedness Other Total Revenues and Other Additions 80,004,200 5,464,402 22,163,863 9,866,767 117,499,232 Expenditures and Other Deductions Educational and General 77,213,077 5,688,190 9,864,697 92,765,964 Auxiliary Enterprises 21,109,572 21,109,572 Indirect Costs Recovered 207,252 207,252 Loan Cancellations Scholarships and Awards Plant and Equipment Debt Service Deposits Retirement of Indebtedness Interest on Indebtedness Bond Indebtedness Retirement of Plant Other Total Expenditures and Other Deductions 77,213,077 5,688,190 21,109,572 10,071,949 114,082,788 Transfers From (To) Other Funds Mandatory (22,388) 91,709 (409,039) (339, 718} Non-Mandatory (3,580,198) 642,363 (179,083) 282,328 (2,834,590) Net Transfers (3,602,586) 734,072 (588,122) 282,328 (3,174,308) Net Increase (Decrease) for the Year (811,463) 510,284 466,169 77,146 242,136 Fund Balance July 1, 1988 3,747,733 4,217,734 3,837,362 548,782 12,351,611 Fund Balance June 30, 1989 $ 2,936,270 $ 4,278,018 $ 4,303,531 $ 625,928 $ 12,593,747 See accompanying notes to the financial statements.

Plant Funds Loan Endowment Retirement of Investment Funds Funds Unexpended Indebtedness in Plant Total $ $ 1,484,816 1981901 $ 114841816 2,023 $ 7731181 $ 7091048 709,048 1501000 1501000 98,084 40,400 61,358 $ 5801417 5801417 71585,629 71585,629 11 ' 1601000 1111601000 1814861678 18,486,678 321116 81012 211381582 3,4401000 314401000 2,138,582 3711524 8421551 14,933,398 81166,046 2216351726 45,7351170 325,538 721 1038 131642,451 13,6421451 7731788 7731788 21360,000 3,440,000 518001000 148,472 319541515 4,102,987 9,165,000 9,1651000 444 251328 2851397 21237,482 2,237,482 285,397 325,982 746,366 161924,711 71679,912 11,402,482 36,007,105 221388 3171330 3171330 181282 218051907 2,805,907 ---- 22,388 18,282 3,123,237 3,123,237 67,930 1141467 11131 1924 486,134 11 12331244 12,851 1302 5,5311337 954,671 141194,980 7,4641507 15915261718 181 11861205 $ 5,599,267 $ 110691138 $ 151326,904 $ 719501641 $ 170,759,962 $ 194,0371507

INDIANA STATE UNIVERSITY Statement of Current Fund Revenues, Expenditures and Other Changes Year Ended June 30, 1989 Revenues Unrestricted Designated Auxiliary Enterprises Restricted Total Governmental Appropriation $ 61,052,315 $ 1,215,998 $ 118,362 $ 62,386,675 Student Fees 16,722,733 2,703,799 3,977,984 23,404,516 Governmental Grants and Contracts $ 8,399,215 8,399,215 Private Gifts, Grants and Contracts 1,465,482 1,465,482 Sales and Services 483,308 414,301 17,614,805 18,512,414 Recovery of Indirect Costs 298,243 298,243 Investment Income 1,099,135 269,247 71,166 1,439,548 Contributions 172,215 16,375 165,037 353,627 Other Revenue 176,251 844,682 216,509 1,237,442 Total Revenues 80,004,200 5,464,402 22,163,863 9,864,697 117,497,162 Expenditures and Mandatory Transfers Educational and General- Instructional and Departmental Research and Activities 38,598,586 104,805 Public Service 38,703,391 653,689 493,168 Academic Support 1,146,857 7,109,117 1,834,310 Sponsored Research and Othe; 8,943,427 Sponsored Programs 3,932,309 3,932,309 Student Services 2,555,201 Operation and Maintenance of 2,555,201 Plant 12,449,755 2,688,770 Institutional Support 15,138,525 12,257,223 326,289 Student Aid 12,583,512 3,589,506 240,848 5,932,388 9,762,742 Educational and General Expenditures 77,213,077 5,688,190 9,864,697 92,765,964 Mandatory Transfers 22,388 (91,709) (69,321) Total Educational and General 77,235,465 5,596,481 9,864,697 92,696,643 Auxiliary Enterprises- Expenditures 21,109,572 Mandatory Transfers for Debt 21,109,572 Service 409,039 409,039 Total Auxiliary Enterprises 21,518,611 21,518,611 Total Expenditures and Mandatory Transfers 77,235,465 5,596,481 21,518,611 9,864,697 114,215,254 Other Transfers and Additions (Deductions) Restricted Receipts (under) Transfers to Revenues Net Transfers From (To) (205,182) (205,182) (3,580,198) 642,363 (179,083) 282,328 (2,834,590) Net Increase in Fund Balances $ (811,463) $ 510,284 $ 466,169 $ 77,146 $ 242,136 See accompanying notes to the financial statements.

INDIANA STATE UNIVERSITY NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by Indiana State University are described below to enhance the usefulness of the financial statements to the reader. Fund Classifications To insure observance of limitations and restrictions placed on the use of the resources available to the University, the accounts are maintained in accordance with the principles of "Fund Accounting." These principles require that the resources be classified for accounting and reporting purposes into account groups in accordance with the activities or objectives specified for the resources. Accounts are separately maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been reported by fund group. Current Funds The current fund classification is divided into unrestricted, designated, auxiliary enterprises and restricted. These classifications reflect the restrictions placed upon the funds and their availability for current operations. Unrestricted funds, supported primarily by State appropriations and student fees, are under the budgetary control of the University Board of Trustees for use in achieving its educational purposes. Designated funds are set aside at the discretion of the Board of Trustees to support related activities. The operation of auxiliary enterprises is supplementary to the primary educational function of the University and is supported primarily by charges directly related to the cost of goods or services provided. Restricted funds may only be expended in compliance with the restrictions set forth by the donor, grantor or University policy. Restricted funds are not earned until all of the terms of the agreement under which they were given to the University have been met. Accordingly, the Statement of Current Fund Revenues, Expenditures and Other Changes recognize restricted revenues to the extent of expenditures. Loan Funds The loan fund grouping consists of funds available for loans to students, primarily the Perkins Loan program financed by the Federal Government. Federal provisions stipulate that the University match one-ninth of the Federal contributions. Also, a portion of the loan principal and interest (maximum of 20% per year) will be cancelled and absorbed by the Federal Government, if the recipient completes certain employment requirements. Interest is recorded on an accrual basis. Endowment and Similar Funds Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and only the income may be expended. Term endowment funds are similar to endowment funds except that upon the passage of a stated period of time or the occurrence of a particular event, all or part of the principal may be expended. While funds functioning as endowments are also included, they have been established by the governing board, which may decide at any time to expend the principal. Plant Funds The unexpended plant funds grouping of accounts provides the majority of control over acquiring, constructing, or improving the property of the University. Revenues are provided primarily by issuance of bonds, State appropriations and allocations from current funds. 11

Reserve funds are maintained on the University records for retirement of indebtedness. These funds are deposited with a bank trustee as set forth in each series of bond indentures. The Investment in Plant Funds contains the University's plant assets, buildings and equipment and related liabilities. Agency Funds Agency funds are used to account for assets held by the University as custodian or fiscal agent for others. The majority of the individual accounts relate to student organizations. The transactions of these funds do not affect the Statement of Changes in Fund Balances. Financial Statements The financial statements have been prepared on the accrual basis of accounting with the following exceptions: 1. Employee sick leave costs are recorded when paid. 2. Unrestricted gifts are reported as current revenues in the period they are received rather than in the period they are used. 3. Interest expense on outstanding obligations is recorded when paid. 4. Depreciation of plant and equipment is not reported. The Statement of Current Operating Funds Revenues, Expenditures and Other Changes is a statement of financial activities of operating funds for the period reported. This statement does not present an operating net income for the period as would a statement of income and expense. The following valuations are included in the financial statement. 1. Investments in securities are reported at cost or fair market value at the time of donation. 2. Inventories are carried at cost. 3. Property, buildings, and equipment are stated at cost at the date of acquisition or fair market value at date of donation. 4. Student fees include $3,830,353 of remitted fees charged to Student Aid, of which $157,230 were for faculty, staff and dependents. NOTE B. EMPLOYEE VACATION Accrued vacation was recorded for fiscal year 1988-89. The current vacation policy states that an employee cannot accrue more than 40 days vacation. Vacation can be taken as it is earned. NOTE C. FOOD SERVICE OPERATING CHANGE On July 17, 1989, the Marriott Corporation assumed operating control over all of the food service operations located within the student housing and student union facilities. A physical inventory was conducted with Marriott buying substantially all related inventory. The student union food service operation remains temporarily in the current University-owned facility until it is relocated within a planned privately funded retail/food court facility to be constructed on University property with expected occupancy in 1990. NOTE D. CASH AND INVESTMENTS The University maintains a cash and investment pool which is available for use by all funds. Each funds portion of this pool is displayed on the balance sheet as "Cash and Investments." In addition, investments are separately held by several of the University's funds. 12

State statutes authorize the University to invest in obligations of the U.S. Treasury, its agencies, and instrumentalities, and repurchase agreements. The University has also been the recipient of stocks and bonds through endowments and scholarship funds. The University's investments are categorized to give an indication of the level of risk assumed at year-end. Investments at June 30, 1989, are stated at cost which approximates market. Category 1 includes investments that are insured and registered by use of a safekeeping receipt in the University's name. Category 2 includes uninsured and registered investments for which the securities are held by the University. Deposits are insured up to $100,000 by FDIC, and in excess of $100,000 by the Indiana Public Deposits fund. Repurchase Agreements US Government Securities Stocks and Bonds Sub-Total Deposits Bank Deposits Certificates of Deposit Sub.:rotal Working Funds Total Cash and Investments NOTE E. NEW BOND ISSUE Category 1 $ 3,500,000 15,284,234 $ $ 18,784,234 $ 2 Total $ 3,500,000 15,284,234 55,552 55,552 55,552 $ 18,839,786 $ (774,583) 12,936,667 $ 31,001,870 310,962 $ 31,312,832 Student Fee Bonds, Series D ($11,525,000) dated September 15, 1988, were issued October 13, 1988. The Series D bonds provided the funds needed to retire $2,360,000 principal amount of interim debt received for partial construction of an addition to the Health Professions and Physical Education Building and finance the cost of construction and equipping Root Hall, a new academic building. Root Hall will be occupied during the latter part of the 1989 fall semester. NOTE F. RETIREMENT PLANS Substantially all permanent employees of the University are covered by either the independently administered Teachers Insurance and Annuity Association, the Indiana Teachers Retirement Fund, or the Indiana Public Employees Retirement Fund. The University's total contribution to all retirement plans for the year ended June 30, 1989, was $5,067,043. The University has no future unfunded liability relating to the retirement programs. The Teachers Insurance Annuity Association program (TIAA/CREF) is a defined contribution plan. Liability for the Indiana Teachers Retirement Fund (STRF) and the Indiana Public Employees Retirement Fund (PERF) is with the State of Indiana. NOTE G. MEDICAL AND LIFE INSURANCE PLANS The University medical insurance plan is administered by Blue Cross/Blue Shield and includes a management program requiring precertification to determine prospectively the medical necessity of hospitalizations and the appropriateness of lengths of stay. The coverage is administered through an Administrative Service Contract (ASO) with a monthly membership retention (administrative) charge and an aggregate stop-loss provision. The University is on a self accounting basis for the monthly retention payments with annual audits. 13

In addition, Indiana State University provides certain life insurance benefits for active and retired employees. The life insurance program is mandatory for all active employees. Substantially all of the employees may become eligible for the retired life insurance benefits if they reach normal retirement age while working for Indiana State University. The cost of providing these medical and life insurance benefits to both active and retired employees is $4,073,967 for the fiscal year of 1988-89. NOTE H. SUBSEQUENT EVENTS A new Student Union Complex is currently under construction with an expected occupancy in 1990. The project provides for the coversion of a residence hall and attached dining halls and kitchen into the student union facilities and the construction of a new retail/food court and adjoining plaza. Interim financing of $3,600,000 was obtained August 1, 1989, at a variable rate of one-half of prime plus 13/16. The permanent funding for the renovation of existing facilities will be derived from private gifts donated specifically for such project and from the proceeds of approximately $7.7 million of bond indebtedness. A private developer will finance the construction of the retail/food court facility. The plans for a major renovation of three existing facilities are being finalized. Holmstedt Hall will be converted for use by the social sciences, Dreiser Hall will house the Communications department and Theater facilities and the current bookstore will be converted into a computer laboratory facility. The renovation is estimated to cost $3.5 million. Plans for the new central computing and administrative services facility are in their final stages. The new facility would consist of renovating the existing Student Union and constructing a new 36,000 square foot addition. A total projected cost of $7.8 million is anticipated. The University administration is considering combining the above projects and issuing one series of bonds during the 1989-90 fiscal year. NOTE I. INTERRELATED ORGANIZATIONS The Indiana State University Foundation is a separate nonprofit organization that is exempt from federal income tax. It was formed in 1928 to assist in the support and development of the University. During calendar year 1988, the Indiana State University Foundation forwarded gifts to the University primarily for scholarships of $416,262. 14

SUPPLEMENTAL FINANCIAL STATEMENTS

INDIANA STATE UNIVERSITY Schedule of Auxiliary Enterprises Revenues and Expenditures Year Ended June 30, 1989 Revenues Auxiliary Student Memorial Facilities Housing Bookstore Union Communications Bond Fund Rent $ 6,681,234 Board 5,606,322 Sales Food 346,230 238,612 Vending and Concessions 82,344 70,178 Telephone Services 16,592 1,529,891 Tickets and Fees Advertising Printing Rentals 293,567 2,942 Commissions 450 35 43,319 1,563 Student Services Fees 551,000 1 '105,452 Contributions 37 Reimbursement 216,509 13,026 753,554 Interest Income 60,253 197 Government Appropriation Interest Subsidy Class Dues 52,148 66,214 Other 3,027 995 (1,014) Total Revenues 13,065,146 307,623 905,234 2,285,008 1,171,666 Expenditures Personal Services 5,478,351 30,350 683,385 144,446 Supplies and Other Expenses 1,575,986 72,690 85,580 1,669,006 Repairs, Rehabilitation and Equipment 1,737,608 2,787 41,562 267,293 Food Supplies 1,525,635 89,001 Grants-In-Aid and Scholarships Debt Service Deposits 2,369,021 213,412 Trustee Fee Deposits 1,654 Total Expenditures 12,686,601 105,827 1,114,594 2,080,745 Transfers From (To) Other Funds Mandatory 215,066 Non-Mandatory (1 '171,666) (490,857) (56,580) Net Transfers (490,857) 215,066 (56,580) (1 '171,666) Net Change in Fund Balances $ (112,312) $ 201,796 $ 5,706 $ 147,683

Hulman Print Athletics Stadium Center Shop Other Total $ 6,681,234 5,606,322 $28,949 $ 16,804 630,595 $ 5,816 65,661 223,999 1,546,483 263,003 37,433 $ 29,401 329,837 152,375 152,375 596,711 1,285 597,996 11,605 214,799 522,913 286,452 8 21,898 3,509 357,235 2,160,532 72,000 89,000 3,977,984 165,000 165,037 74,771 1,057,859 10,717 71 '166 118,362 73,331 (230) 18,920 26,440 26,440 2,997 98,026 2,965,738 66,161 495,570 596,711 305,006 22,163,863 1,069,983 9,713 396,249 271,375 119,276 8,203,128 941,420 38,528 119,931 220,254 108,682 4,832,077 48,345 824 15,510 123,737 27,940 2,265,606 1,614,636 1,062,497 1,062,497 154,443 390,038 3,126,914 834 2,226 4,714 3,123,079 203,508 923,954 615,366 255,898 21 '1 09,572 834 154,463 392,264 (409,039) 34_0_,9_0_6 3_5_,0_8_7 ~(2_, 7_5~0) (~4_, 8_8~9) ~(1_7_9~,0_8~3) 341,740 154,463 427,351 (2,750)...:..._ (4-'--, 8-8~9) (588,122) ----------------------------------------'- -----'-----'-------'- $ 184,399 $ 17,116$ (1,033) $ (21,405) $ 44,219 $ 466,169 ====== 17

INDIANA STATE UNIVERSITY Schedule of Changes in Retirement of Indebtedness Reserve Funds Held by Trustee Fund Additions Balance Investment July 1, 1988 Income Deposits Housing and Dining System Revenue Bonds, Series 1985 $ 7,543 $ 2,072,021 lndebtness Reserve $ 2,375,544 232,408 Repair and Replacement Reserve 3,309,083 212,903 297,000 Sub Total 5,684,627 452,854 2,369,021 Academic Facilities Bonds Student Fee Bonds, Series A of 1985 Student Fee Bonds, Series 317,500 22,769 1 '113,575 B of 1985 Student Fee Bonds, Series 242,500 17,213 825,946 C of 1986 Student Fee Bonds, Series 302,500 21,541 1,135,090 D of 1988 7,137 601,212 Boiler Retrofit Bonds of 1987 887 604,929 Sub Total 862,500 69,547 4,280,752 Student Services Bonds Student Union 236,717 15,404 215,167 Gymnasium 41,352 Student Health Center 193,870 9,060 178,208 Hulman Center 445,441 33,552 388,038 Indiana Bond Bank, Series 1985B Stadium Refunding 154,443 Sub Total 917,380 58,016 935,856 Total $ 7,464,507 $ 580,417 $ 7,585,629

Deductions Fund Retirement Interest Balance of Debt Expense Other June 30, 1989 $ 900,000 $ 1,383,926 $ (233,432) $ 29,070 295,192 2,312,760 216,509 3,602,477 900,000 1,383,926 278,269 5,944,307 635,000 471,238 347,606 485,000 347,485 253,174 605,000 526,770 327,361 459,503 3,740 145,106 425,000 178,407 1,522 887 2,150,000 1,983,403 5,262 1,074,134 75,000 158,630 1,755 231,903 41,352 80,000 85,548 215,590 185,000 238,565 111 443,355 50,000 104,443 390,000 587,186 1,866 932,200 $ 3,440,000 $ 3,954,515 $ 285,397 $ 7,950,641

INDIANA STATE UNIVERSITY Schedule of Bonded Indebtedness Date of Original Retired To Retired Outstanding Issue Issue June 30, 1988 1988-89 June 30, 1989 Housing and Dining System Revenue Bonds, Series 1985, 5.50% to 8.50% 8/1/85 $ 19,350,000 $ 2,900,000 $ 900,000 $ 15,550,000 Student Fee Bonds, Series, A, 5.25% to 8% 11/1/85 Student Fee Bonds, Series B, 8,060,000 1 '175,000 635,000 6,250,000 5.25% to 8% Student Fee Bonds, Series C, 11/1/85 6,110,000 885,000 485,000 4,740,000 4.5% to 7.4% Student Fee Fonds, Series D, 8/1/86 8,980,000 580,000 605,000 7,795,000 5.75% to 7.8% Boiler Retrofit Bonds of 1987 9/15/88 11,525,000 11,525,000 5,50% to 6.70% 12/29/87 2,965,000 425,000 2,540,000 Total Student Fee Bonds 37,640,000 2,640,000 2,150,000 32,850,000 Performance Facilities Bonds Gymnasium Bonds, 3.25 to 5% 9/1/60 1,500,000 1,500,000 Student Health Center First Mortgage Bonds, 4 to 6% Amphitheatre First Mortgage Bonds, 2/1/72 2,495,000 760,000 80,000 1,655,000 4.50 to 6.50% Student Union Refunding and 11/1/73 6,000,000 1,630,000 185,000 4,185,000 Improvement Bonds, Series B, 6.25 to 6.75% 11/1/76 3,000,000 545,000 75,000 2,380,000 Indiana Bond Bank, Series 1985B Stadium Refunding, 6.50% to 9.45% 12/1/85 1,305,000 90,000 50,000 1,165,000 Total Performance Facilities Bonds 14,300,000 4,525,000 390,000 9,385,000 Total $ 71,290,000 $ 10,065,000 $ 3,440,000 $ 57,785,000

Indiana State University