Executive Summaries and Actual and Budgeted Revenues, Expenses and Changes in Net Position. For the Six Months Ended December 31, 2017 (Unaudited)

Executive Summaries and Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 (Unaudited)

Arkansas Archeological Survey

ARKANSAS ARCHEOLOGICAL SURVEY For Quarter Ended December 31, 2017 Current Unrestricted Fund Statement of Budgeted and Actual Revenues and Expenditures For the Quarter Ended December 31, 2017 REVENUES STATE FUNDS State appropriations are 50.3% realized at 12/31/2017 with actual revenue of $1,243,090. OTHER INCOME Revenue in the amount of $14,812 is from sales of publications and user fees for AMASDA database. Revenue in the amount of $8,737 is from the spending distribution on the Hester A. Davis endowment. Revenue in the amount of $1,164 is from other miscellaneous sources. EXPENDITURES Total expenditures to date are 49.1% of annual budget. At 12/31/2017, expenditures are 1% less than total revenues received. George Sabo III Director

Page 1 of 2 Arkansas Archeological Survey Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Student tuition & fees Patient services Federal and county appropriations Grants and contracts 100,000 36,756 36.8% 100,000 36,756 36.8% Sales/services of educational departments Insurance plan Auxiliary enterprises: Athletics Housing/food service Bookstore Other auxiliary enterprises Other operating revenues 33,591 24,714 73.6% 33,591 24,714 73.6% TOTAL OPERATING REVENUES 33,591 24,714 73.6% - - 100,000 36,756 36.8% 133,591 61,470 46.0% OPERATING EXPENSES Compensation & benefits 2,257,437 1,113,249 49.3% 75,000 60,968 81.3% 2,332,437 1,174,218 50.3% Supplies & services 245,989 117,104 47.6% 25,000 12,519 50.1% 270,989 129,623 47.8% Scholarships & fellowships Insurance plan Depreciation Contingency TOTAL OPERATING EXPENSES 2,503,426 1,230,353 49.1% - - 100,000 73,487 73.5% 2,603,426 1,303,840 50.1% OPERATING LOSS (2,469,835) (1,205,639) 48.8% - - - (36,731) (2,469,835) (1,242,371) 50.3%

Page 2 of 2 Arkansas Archeological Survey Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized NON-OPERATING REVENUES (EXPENSES) State appropriations 2,469,835 1,243,090 50.3% 2,469,835 1,243,090 50.3% Property & sales tax Grants Gifts Investment income Interest on capital asset-related debt Other NET NON-OPERATING REVENUES 2,469,835 1,243,090 50.3% - - - - 2,469,835 1,243,090 50.3% INCOME (LOSS) BEFORE OTHER REV/EXP - 37,451 - - - (36,731) - 719 OTHER CHANGES IN NET POSITION Capital appropriations Capital gifts and grants Other TOTAL OTHER CHANGES - - - - - - - - TRANSFERS IN (OUT) Debt Service Other TOTAL TRANSFERS IN (OUT) - - - - - - - - INCREASE IN NET POSITION - 37,451 - - - (36,731) - 719

Criminal Justice Institute

CRIMINAL JUSTICE INSTITUTE EXECUTIVE SUMMARY Statement of Budgeted and Actual Revenue and Expenditures For the Six Months Ended December 31, 2017 (Unaudited) Materiality Defined: Materiality is defined as a variance of 5% or more or a minimum of $50,000 of any item from the original budgeted amount. Revenues: Unrestricted state revenues realized through the first quarter of FY 2018 were $916,784 which is 50.2% of the annual appropriation. State Revenues are requested and received by the University of Arkansas at Fayetteville monthly based on projections of need calculated at the UAF campus. Other Revenues received through the 2nd quarter of FY 2018 included Indirect Costs Recovery from Federal and State grants of $149,881. The Criminal Justice Institute received a $125,000 grant from the Blue & You Foundation for the purchase of Naloxone and for training law enforcement personnel to administer the drug. The Criminal Justice Institute also received $84,000 from our 2018 Subscription program this quarter. These funds will not be expended this fiscal year. Budget Allocations: The Supplies and services category was increased by $125,000 to budget the funds from the Blue & You grant. Dr. Cheryl P. May Director

CRIMINAL JUSTICE INSTITUTE-UA SYSTEM Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Student tuition & fees--out of State Student Fees 10,000 2,875 28.8% 10,000 2,875 28.8% Patient Services Federal and county appropriations Grants and contracts 2,439,020 740,889 30.4% 2,439,020 740,889 30.4% Sales/services of educational departments 84,000 84,000 100.0% 84,000 84,000 100.0% Insurance plan Auxiliary enterprises: Athletics Housing/food service Bookstore Other auxiliary enterprises Other operating revenues 237,168 149,881 63.2% 237,168 149,881 63.2% TOTAL OPERATING REVENUES 331,168 236,756 71.5% - - 2,439,020 740,889 30.4% 2,770,188 977,645 35.3% OPERATING EXPENSES Compensation & benefits 1,441,811 682,938 47.4% 896,994 435,995 48.6% 2,338,805 1,118,933 47.8% Supplies & services 1,073,543 408,127 38.0% 1,603,433 408,043 25.4% 2,676,976 816,170 30.5% Indirect Costs--State and Federal Grants 237,168 149,881 63.2% 237,168 149,881 63.2% Insurance plan Depreciation Contingency TOTAL OPERATING EXPENSES 2,515,354 1,091,065 43.4% - - 2,737,595 993,919 36.3% 5,252,949 2,084,984 39.7% OPERATING LOSS (2,184,186) (854,309) 39.1% - - (298,575) (253,030) 84.7% (2,482,761) (1,107,339) 44.6%

CRIMINAL JUSTICE INSTITUTE-UA SYSTEM Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized NON-OPERATING REVENUES (EXPENSES) State appropriations 1,975,769 1,066,784 54.0% 100,000 100,000 100.0% 2,075,769 1,166,784 56.2% Property & sales tax Grants Gifts Investment income Interest on capital asset-related debt Other NET NON-OPERATING REVENUES 1,975,769 1,066,784 54.0% - - 100,000 100,000 100.0% 2,075,769 1,166,784 56.2% INCOME (LOSS) BEFORE OTHER REV/EXP (208,417) 212,475-101.9% - - (198,575) (153,030) 77.1% (406,992) 59,445-14.6% OTHER CHANGES IN NET POSITION Capital appropriations Capital gifts and grants Other TOTAL OTHER CHANGES - - - - - - - - TRANSFERS IN (OUT) Debt Service Transfer from the Plant Fund 302,417 0.0% (302,417) 0.0% - TOTAL TRANSFERS IN (OUT) 302,417-0.0% - - (302,417) - 0.0% - - INCREASE IN NET POSITION 94,000 212,475 226.0% - - (500,992) (153,030) 30.5% (406,992) 59,445-14.6%

Criminal Justice Institute-UA System Budget Adjustments Made in the Quarter Ended December 31, 2017 Beginning End Line Item of Q Budget Adjustments of Q Budget Fund Explanation % Change Grants (2,314,020) (125,000) (2,439,020) Other Receipt of $125,000 Blue & You Grant 5% Supplies & Services 1,478,433 125,000 1,603,433 Other Budgeting $125,000 Grant for Nalone purchase and law enforcement training expenses 8% 2018 Subscription revenue (84,000) (84,000) E&G Receipt of $84,000 in 2018 Subscription revenue from AR Law Enforcement Grants and contracts- Operating 2,439,020 2,439,020 E&G Reclassify Grant and contracts revenue from non-operating to operating revenues. Grants and contracts- Non-Operating 2,439,020 (2,439,020) - E&G Reclassify Grant and contracts revenue from non-operating to operating revenues. -100% Indirect Costs-State and Federal Grants 237,168 (237,168) E&G Reclassify indirect costs revenue from non-operating to operating revenues. -100% Other operating revenues 237,168 237,168 E&G Reclassify indirect costs revenue from non-operating to operating revenues. Total adjustments (84,000)

Division of Agriculture

UNIVERSITY OF ARKANSAS DIVISION OF AGRICULTURE EXECUTIVE SUMMARY Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Quarter Ended December 31, 2017 Revenues: State Appropriations: The Educational and General (E&G) State Appropriations budget consists of state revenue funded through the Revenue Stabilization Act (RSA) and the Educational Excellence Trust Fund Act (EETF). The Other State Appropriations budget consists of Tobacco Settlement funds allocated to the Division to fund the Arkansas Biosciences Institute (ABI). Federal Appropriations: This category consists of funds from US Department of Agriculture National Institute of Food and Agriculture (USDA NIFA) provided through the federal formula and are considered part of the base support for the Division of Agriculture. These funds are drawn down on a reimbursable basis. County Appropriations: This category consists of quarterly payments made by county governments based upon their agreement to fund a portion of the Cooperative Extension Service county program cost for each county operation. Sales/Services: This category consists of revenue from educational and research activities, including the sale of foundation seed to seed producers, crop and cattle sales, royalties, investments, and programmatic activity in each county depository account. Variance Explanations: Budgeted and Actual Revenue: A budget adjustment was made to the Other operating revenue line in both the E&G category and in the Other category to account for funds received from the Arkansas Attorney General ($500,000 E&G), for insurance reimbursements on storm claims and a fund transfer from UAF for a door repair ($27,265 E&G and $181,377 Other). In addition, a budget adjustment was made to Capital gifts and grants in the Other category to account for $4 million received from the Rice Research and Promotion Board for a land purchase for the new Northeast Research and Extension Center outside of Jonesboro. These funds were not anticipated when the FY18 budget was prepared.

Operating revenue from Sales/services of education departments is above schedule, while Grants and contracts revenue is below. Most grant revenue is not recognized until expenses have been incurred and are reimbursed a little later in the year. A significant portion of Grants and contracts revenue is received in the fourth quarter of the year and year-end accrual entries will recognize revenue earned but not received. This line will even out in future reporting periods as Grants and contracts revenue is realized from expenditures being submitted for reimbursement. Federal Appropriations are lower due to the timing of the draw down of the funds. In Non-operating revenues the Tobacco Settlement funds are received in one lump sum during the first quarter of the year and were slightly higher than anticipated accounting for 103.1% of the Other State appropriations budget being realized. This together with the strong receipts from Investment income account for 70.5% of the budget realized of Net Non-Operating Revenues in the Other category. Garvan Gardens has expenses that will be paid in the third quarter and even out this Non-Operating Expense line in the E&G category. Budgeted and Actual Expenditures Operating Expenses in the E&G category were substantially as predicted. The 117.2% of Budget Realized on the Operating Loss line in the Other Category is due to the timing of the funds received from Grants and contracts. As indicated above there is a lag between when expenditures are made and when the related revenue is received and recognized throughout the year. This line will even out in future reporting periods as Grants and contracts revenue is realized from expenditures being submitted for reimbursement. Transfers In (Out) The Capital line in the Other category is slightly higher than anticipated due to the timing of the purchase last quarter of several replacement vehicles and transfers for the Soils Testing Lab and equipment. Mark Cochran Vice President for Agriculture

UNIVERSITY OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Federal and county appropriations - - 17,083,073 7,257,173 42.5% 17,083,073 7,257,173 42.5% Grants and contracts - - 29,132,437 9,082,835 31.2% 29,132,437 9,082,835 31.2% Sales/services of educational departments 11,507,105 6,565,744 57.1% - - 11,507,105 6,565,744 57.1% Other operating revenues 527,765 527,765 100.0% 181,377 181,377 100.0% 709,142 709,142 100.0% TOTAL OPERATING REVENUES 12,034,870 7,093,509 58.9% - - 46,396,887 16,521,385 35.6% 58,431,757 23,614,894 40.4% OPERATING EXPENSES Compensation & benefits 66,051,178 33,942,805 51.4% 27,040,034 13,035,767 48.2% 93,091,212 46,978,572 50.5% Supplies & services 14,590,917 6,740,951 46.2% 19,477,808 7,671,493 39.4% 34,068,725 14,412,444 42.3% Scholarships & fellowships 10,877 4,539 41.7% 285,102 66,091 23.2% 295,979 70,630 23.9% Depreciation - - 5,616,709 2,808,355 50.0% 5,616,709 2,808,355 50.0% Contingency 174,632-0.0% - - 174,632-0.0% TOTAL OPERATING EXPENSES 80,827,604 40,688,295 50.3% - - 52,419,653 23,581,706 45.0% 133,247,257 64,270,001 48.2% OPERATING LOSS (68,792,734) (33,594,786) 48.8% - - (6,022,766) (7,060,321) 117.2% (74,815,500) (40,655,107) 54.3% NON-OPERATING REVENUES (EXPENSES) State appropriations 68,749,240 34,802,217 50.6% 1,549,481 1,597,367 103.1% 70,298,721 36,399,584 51.8% Grants - - - - - - Gifts 400,000 124,920 31.2% 3,680,000 2,096,950 57.0% 4,080,000 2,221,870 54.5% Investment income 312,000 125,380 40.2% 180,000 117,162 65.1% 492,000 242,542 49.3% Other-Garvan Gardens (160,000) (21,681) 13.6% - - (160,000) (21,681) 13.6% NET NON-OPERATING REVENUES 69,301,240 35,030,836 50.5% - - 5,409,481 3,811,479 70.5% 74,710,721 38,842,315 52.0% INCOME (LOSS) BEFORE OTHER REV/EXP 508,506 1,436,050 282.4% - - (613,285) (3,248,842) 529.7% (104,779) (1,812,792) 1730.1% OTHER CHANGES IN NET POSITION Capital appropriations - - - - - Capital gifts and grants - 4,000,000 4,000,000 100.0% 4,000,000 4,000,000 100.0% Other-Loss on disposal of capital assets - (4,419) (4,419) 100.0% (4,419) (4,419) 100.0% TOTAL OTHER CHANGES - - - - 3,995,581 3,995,581 100.0% 3,995,581 3,995,581 100.0% TRANSFERS IN (OUT) Debt Service - - - - - Other - Capital (2,438,622) (1,454,133) 59.6% 2,438,622 1,454,133 59.6% - - Other - Indirect cost recovery 1,700,000 859,967 50.6% (1,700,000) (859,967) 50.6% - - TOTAL TRANSFERS IN (OUT) (738,622) (594,166) 80.4% - - 738,622 594,166 80.4% - - INCREASE IN NET POSITION (230,116) 841,884-365.9% - - 4,120,918 1,340,905 32.5% 3,890,802 2,182,789 56.1%

UNIVERSITY OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE Budget Adjustments Made in the Quarter Ended December 31, 2017 Beginning End Line Item of Q Budget Adjustments of Q Budget Fund Explanation % Change Other operating revenues Funds received from the Arkansas Attorney General and from storm damage insurance (527,765) E&G (527,765) claims Other operating revenues (181,377) (181,377) Other Funds received from storm damage insurance claims & UAF transfer for door repair Capital gifts and grants Funds received from the Rice Research and Promotion Board for a land purchase for the new (4,000,000) Other (4,000,000) Northeast Research and Extension Center Capital-Loss on disposal of capital assets Difference between depreciated value of a Mud-Master spray rig and trade-in value received 4,419 Other 4,419 in purchase of a new spray rig Total adjustments (4,704,723)

University of Arkansas, Fayetteville

University of Arkansas Fayetteville Campus Executive Summary For the Quarter Ended December 31, 2017 The University of Arkansas, Fayetteville financial reports for the Quarter ended December 31, 2017 are attached in the formats requested. These reports are prepared on a modified accrual basis of accounting. Educational & General Revenues are generally in line with expectations. The E&G debt service transfers reflects the fact that scheduled payments are made in the 2 nd and 4 th Quarters. Auxiliaries Revenues are generally in line with expectations. The Auxiliary debt service transfers reflects the fact that scheduled payments for Athletics are made in the 1 st and 3 rd Quarters. The variance reflected in Other Transfers is due to the fact that scheduled plant fund transfers for projects in Athletics, Housing, and Health Center will occur during the 3 rd and 4 th Quarters. Other Revenues and expenditures are generally in line with expectations. Other State appropriations includes a grant from NCRC in the amount of $510,000 for the restoration of the Historic Sandstone Wall on Arkansas Avenue. Capital gifts and grants includes a $10,000,000 gift from the Wingate Foundation for the School of Art. The amount budgeted for Other Investment Income is calculated based on the prior FYE balance of investments in the Total Return Pool, and the benchmark return, as provided by the manager of the pooled funds (Cambridge & Associates). Based on this calculation, the budgeted income for FY18 is $4.525 Million. The markets performed better than expected during the fiscal year, and therefore the returns have exceeded the benchmark. Joseph E. Steinmetz Chancellor

Page 1 of 2 UNIVERSITY OF ARKANSAS AT FAYETTEVILLE Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Student tuition & fees 289,755,868 157,882,086 54.5% 11,982,795 5,278,361 44.0% 301,738,663 163,160,447 54.1% (41,929,035) (22,851,324) 54.5% (41,929,035) (22,851,324) 54.5% (28,299,486) (15,423,220) 54.5% (28,299,486) (15,423,220) 54.5% Patient services Federal and county appropriations Grants and contracts 63,894,571 36,358,807 56.9% 63,894,571 36,358,807 56.9% Sales/services of educational departments 6,262,667 4,145,421 66.2% 6,262,667 4,145,421 66.2% Insurance plan Auxiliary enterprises: Athletics 104,782,690 73,280,411 69.9% 104,782,690 73,280,411 69.9% Housing/food service 67,238,747 35,867,857 53.3% 67,238,747 35,867,857 53.3% (6,980,794) (3,720,763) 53.3% (6,980,794) (3,720,763) 53.3% (4,711,601) (2,511,283) 53.3% (4,711,601) (2,511,283) 53.3% Bookstore 11,238,827 4,676,105 41.6% 11,238,827 4,676,105 41.6% (82,260) (34,220) 41.6% (82,260) (34,220) 41.6% (55,521) (23,097) 41.6% (55,521) (23,097) 41.6% Other auxiliary enterprises 12,099,259 8,225,513 68.0% 12,099,259 8,225,513 68.0% Other operating revenues 20,844,066 9,221,503 44.2% 500,000 207,406 41.5% 21,344,066 9,428,909 44.2% TOTAL OPERATING REVENUES 246,634,080 132,974,466 53.9% 195,512,142 121,038,884 61.9% 64,394,571 36,566,213 56.8% 506,540,793 290,579,563 57.4% OPERATING EXPENSES Compensation & benefits 307,484,801 151,591,445 49.3% 54,255,174 25,422,192 46.9% 64,849,295 29,389,004 45.3% 426,589,270 206,402,641 48.4% Supplies & services 61,273,234 36,255,538 59.2% 89,923,195 48,527,864 54.0% 46,078,526 30,901,061 67.1% 197,274,955 115,684,463 58.6% Scholarships & fellowships 6,953,822 3,774,368 54.3% 7,726,574 4,770,355 61.7% 5,481,981 4,196,989 76.6% 20,162,377 12,741,712 63.2% Insurance plan Depreciation 68,126,985 34,063,492 50.0% 68,126,985 34,063,492 50.0% Contingency 13,828,201 13,828,201 TOTAL OPERATING EXPENSES 389,540,058 191,621,351 49.2% 151,904,943 78,720,411 51.8% 184,536,787 98,550,546 53.4% 725,981,788 368,892,308 50.8% OPERATING LOSS (142,905,978) (58,646,885) 41.0% 43,607,199 42,318,473 97.0% (120,142,216) (61,984,333) 51.6% (219,440,995) (78,312,745) 35.7%

Page 2 of 2 UNIVERSITY OF ARKANSAS AT FAYETTEVILLE Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized NON-OPERATING REVENUES (EXPENSES) State appropriations 128,007,419 64,321,700 50.2% 1,600,000 2,107,367 131.7% 129,607,419 66,429,067 51.3% Property & sales tax Grants 51,181,000 25,709,780 50.2% 51,181,000 25,709,780 50.2% Gifts 64,792,534 21,219,438 32.7% 64,792,534 21,219,438 32.7% Investment income 1,500,000 1,132,395 75.5% 4,525,000 4,477,397 98.9% 6,025,000 5,609,792 93.1% Interest on capital asset-related debt (27,658,130) (10,820,199) 39.1% (27,658,130) (10,820,199) 39.1% Other 800,000 377,351 47.2% 6,154 800,000 383,505 47.9% NET NON-OPERATING REVENUES 130,307,419 65,831,446 50.5% - - 94,440,404 42,699,937 45.2% 224,747,823 108,531,383 48.3% INCOME (LOSS) BEFORE OTHER REV/EXP (12,598,559) 7,184,561-57.0% 43,607,199 42,318,473 97.0% (25,701,812) (19,284,396) 75.0% 5,306,828 30,218,638 569.4% OTHER CHANGES IN NET POSITION Capital appropriations Capital gifts and grants 14,746,864 15,675,731 106.3% 14,746,864 15,675,731 106.3% Other TOTAL OTHER CHANGES - - - - 14,746,864 15,675,731 106.3% 14,746,864 15,675,731 106.3% TRANSFERS IN (OUT) Debt Service (29,954,747) (19,834,958) 66.2% (31,613,556) (24,454,445) 77.4% 61,568,303 44,289,403 71.9% - - Other 42,553,306 21,463,737 50.4% (11,993,643) (668,846) 5.6% (30,559,663) (20,794,891) 68.0% - - TOTAL TRANSFERS IN (OUT) 12,598,559 1,628,779 12.9% (43,607,199) (25,123,291) 57.6% 31,008,640 23,494,512 75.8% - - INCREASE IN NET POSITION - 8,813,340-17,195,182 20,053,692 19,885,847 99.2% 20,053,692 45,894,369 228.9%

University of Arkansas at Fort Smith

UNIVERSITY OF ARKANSAS FORT SMITH For Quarter Ended December 31, 2017 EXECUTIVE SUMMARY The University of Arkansas - Fort Smith s Educational & General unrestricted current fund revenues exceeded expenditures by $1,368,597 through the second quarter of FY18. Auxiliary unrestricted current fund revenues exceeded expenditures by $159,480 through the second quarter of FY18, and other operating fund revenues exceeded expenditures by $715,769 through the second quarter of FY18. For the total of all funds, revenues exceeded expenditures by a total of $2,243,846. Education and General Grants and contracts shortage due to grant reimbursements not yet received for second quarter. Sales/services of educational departments lag behind and expected in fourth quarter. Other operating revenues are high due to late payment fees. Compensation & benefits is low from unfilled job vacancies. Scholarships & fellowships lag less than expected due to reduction of scholarships awarded. Property and sales tax are low because receipts of sales tax revenue lag behind. Investment income changes due to market fluctuations. Debt service is due to payments being scheduled for various months throughout the fiscal year and the timing of the payments. Transfers-others are not yet made for the fiscal year. Auxiliary Grants and contracts are high because the majority of these are received in the first quarter. Other auxiliary enterprises revenues represent yearly parking permits purchased. Page 1

Compensation & benefits is low from unfilled job vacancies. UNIVERSITY OF ARKANSAS FORT SMITH For Quarter Ended December 31, 2017 EXECUTIVE SUMMARY Scholarships & fellowships expenditures are less than expected due to reduction of scholarships awarded. Investment income changes due to market fluctuations. Debt Service due to payments scheduled for various months throughout the year and the timing of the payments. Transfers-others are not yet made for the fiscal year. Other Athletics are high because the majority of revenue is received in the first quarter. Other operating revenues are from unanticipated, sporadic income. Compensation & benefits is from unfilled job vacancies related to grants. Scholarships & fellowships expenditures are higher than expected. Investment income are due to market fluctuations. Debt service due to debt service interest payments being scheduled for various months throughout the fiscal year. Transfers-other not yet made for the fiscal year. Paul B. Beran, PhD Chancellor Page 2

Page 1 of 3 UNIVERSITY OF ARKANSAS AT FORT SMITH Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized OPERATING REVENUE Student tuition & fees 34,445,824 17,573,874 51.0% 4,701,632 2,509,730 53.4% 39,147,456 20,083,604 51.3% (3,803,566) (1,921,679) 50.5% (633,497) (357,142) 56.4% (4,437,063) (2,278,821) 51.4% (17,327,355) (8,754,315) 50.5% (17,327,355) (8,754,315) 50.5% Patient services Federal and county appropriations Grants and contracts 409,135 96,429 23.6% 85,500 82,303 96.3% 7,009,704 2,751,059 39.2% 7,504,339 2,929,791 39.0% Sales/services of educational departments 309,798 71,816 23.2% 9,700 3,711 38.3% 319,498 75,527 23.6% Insurance plan Auxiliary enterprises: Athletics 119,871 88,866 74.1% 8,300 8,294 99.9% 128,171 97,160 75.8% Housing/food service 5,536,750 2,943,012 53.2% 5,536,750 2,943,012 53.2% (396,082) (180,434) 45.6% (396,082) (180,434) 45.6% (2,063,607) (1,038,294) 50.3% (2,063,607) (1,038,294) 50.3% Bookstore 387,000 184,162 47.6% 387,000 184,162 47.6% Other auxiliary enterprises 531,950 498,026 93.6% 531,950 498,026 93.6% (250,000) (169,114) 67.6% (250,000) (169,114) 67.6% Other operating revenues 352,000 278,442 79.1% - 138 352,000 278,580 79.1% TOTAL OPERATING REVENUES 31,713,191 16,098,882 50.8% 10,333,124 5,768,523 55.8% (12,613,258) (7,198,521) 57.1% 29,433,057 14,668,884 49.8% OPERATING EXPENSES Compensation & benefits 41,915,263 17,816,507 42.5% 2,185,995 963,868 44.1% 3,160,127 1,367,961 43.3% 47,261,385 20,148,336 42.6% Supplies & services 13,165,307 5,673,677 43.1% 5,012,211 2,464,519 49.2% 2,256,408 970,186 43.0% 20,433,926 9,108,382 44.6% Scholarships & fellowships 1,428,764 450,097 31.5% 369,304 144,114 39.0% 1,865,449 1,171,459 62.8% 3,663,517 1,765,670 48.2% Insurance plan Depreciation 7,725,000 3,860,431 50.0% 7,725,000 3,860,431 50.0% Contingency TOTAL OPERATING EXPENSES 56,509,334 23,940,281 42.4% 7,567,510 3,572,501 47.2% 15,006,984 7,370,037 49.1% 79,083,828 34,882,819 44.1% OPERATING LOSS (24,796,143) (7,841,399) 31.6% 2,765,614 2,196,022 79.4% (27,620,242) (14,568,558) 52.7% (49,650,771) (20,213,935) 40.7%

Page 2 of 3 UNIVERSITY OF ARKANSAS AT FORT SMITH Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized as of End of Q2 Year-to-Date Realized NON-OPERATING REVENUES (EXPENSES) State appropriations 23,962,374 12,025,168 50.2% 23,962,374 12,025,168 50.2% Property & sales tax 6,219,517 1,514,491 24.4% 6,219,517 1,514,491 24.4% Grants 19,439,500 9,964,161 51.3% 19,439,500 9,964,161 51.3% Gifts Investment income 3,500 5,525 157.9% 2,500 2,298 91.9% 3,100 12,240 394.8% 9,100 20,063 220.5% Interest on capital asset-related debt (2,658,540) (1,142,439) 43.0% (2,658,540) (1,142,439) 43.0% Other 545 1,000 686 68.6% 1,000 1,231 123.1% NET NON-OPERATING REVENUES 30,185,391 13,545,729 44.9% 2,500 2,298 91.9% 16,785,060 8,834,648 52.6% 46,972,951 22,382,675 47.7% INCOME (LOSS) BEFORE OTHER REV/EXP 5,389,248 5,704,330 105.8% 2,768,114 2,198,320 79.4% (10,835,182) (5,733,910) 52.9% (2,677,820) 2,168,740-81.0% OTHER CHANGES IN NET POSITION Capital appropriations 135,743 75,105 55.3% 135,743 75,105 55.3% Capital gifts and grants Other TOTAL OTHER CHANGES - - - - 135,743 75,105 55.3% 135,743 75,105 55.3% TRANSFERS IN (OUT) Debt Service (5,310,829) (4,335,733) 81.6% (2,671,688) (2,038,840) 76.3% 7,982,517 6,374,573 79.9% - - Other (487,531) 0.0% (96,426) 0.0% 583,957 0.0% - TOTAL TRANSFERS IN (OUT) (5,798,360) (4,335,733) 74.8% (2,768,114) (2,038,840) 73.7% 8,566,474 6,374,573 74.4% - - INCREASE IN NET POSITION (409,112) 1,368,597-334.5% - 159,480 (2,132,965) 715,768-33.6% (2,542,077) 2,243,845-88.3%

UNIVERSITY OF ARKANSAS AT FORT SMITH Budget Adjustments Made in the Quarter Ended December 31, 2017 Beginning End Line Item of Q2 Budget Adjustments of Q2 Budget Fund Explanation % Change Student tuition & fees (34,412,224) (33,600) (34,445,824) E&G assessment fees collected and then paid on behalf of students 0.10% Operating Revenue/Grants and contracts (408,805) (330) (409,135) E&G private gifts 0.08% Sales/services of educational departments (294,010) (15,788) (309,798) E&G labor reimbursements-eversity 5.37% Other operating revenues (350,200) (1,800) (352,000) E&G income from Amer Democracy Project & Grad Adm fees 0.51% Compensation & benefits 41,896,829 18,434 41,915,263 E&G labor reimbursements-eversity 0.04% Supplies & services 13,178,744 (13,437) 13,165,307 E&G decrease for capital purchases -0.10% Scholarships & fellowships 1,425,564 3,200 1,428,764 E&G grant required scholarship match/move from Supplies & services 0.22% Transfers/Other 474,014 13,517 487,531 E&G transfers for plant expenditures 2.85% Athletics (97,400) (22,471) (119,871) Auxiliary new ad sales and game guarantees 23.07% Supplies & services 4,989,790 22,421 5,012,211 Auxiliary new ad sales and game guarantees 0.45% Scholarships & fellowships 369,254 50 369,304 Auxiliary transferred from Supplies & services 0.01% Grants and contracts (6,958,025) (51,679) (7,009,704) Other new grants and increaed funding of current grants 0.74% Sales/services of educational departments (18,000) 8,300 (9,700) Other moved budget to auxiliary enterprise-athletics -46.11% Athletics - (8,300) (8,300) Other moved budget from sales/services of ed departs Compensation & benefits 3,205,742 (45,615) 3,160,127 Other grant award moved to supplies and services -1.42% Supplies & services 2,209,394 47,014 2,256,408 Other grant award moved from comp & benefits & new grant awarded 2.13% Scholarships & fellowships 1,867,848 (2,399) 1,865,449 Other grant awarad reduced -0.13% Other (570,440) (13,517) (583,957) Other transfers for plant expenditures 2.37% Total adjustments (96,000)

University of Arkansas at Little Rock

University of Arkansas at Little Rock Executive Summary For the Quarter Ended December 31, 2017 The University of Arkansas at Little Rock financial reports for the quarter ended December 31, 2017 are attached in the format requested. These reports are prepared on a modified accrual basis of accounting. As of the end of this period, Educational & General, Auxiliary and Other revenues were greater than expenditures by $3,218,823, $3,274,335, and $101,118, respectively. The total of all funds reflects revenues exceeding expenditures by $6,594,276. Educational & General The accompanying reports reflect no material differences between budget and actual for revenue classifications. However, expenditures for supplies and services are below projection by 11.7% or $2,585,762 as of the end of the quarter primarily due to timing issues. Additionally, debt service transfers reflect that payments are made primarily in the first and third quarters. Other transfers indicate funds were moved as anticipated for the year in the first and second quarters. Auxiliary The accompanying reports reflect no material differences between budget and actual for revenue or expenditure classifications. However, debt service transfers reflect that payments are made primarily in the first and third quarters. Other transfers indicate funds were moved as anticipated for the year in the first and second quarters. Other The accompanying reports reflect no material differences between budget and actual for operating revenue classifications. However, supplies and services are below projection by 18.3% or $4,752,501 due to the timing of grant operations and various campus projects. Non-operating revenues, gifts and investment income, show variances of -22% and 73.8%, respectively. The variance in gifts is attributable to the timing of when funds are received for the year from donors and the UA-Little Rock Foundation. The positive variance in investment income is reflective of market earning and funds being conservatively budgeted for the year. Accounts will be reviewed and budget adjustments made as needed.

Debt service transfers reflect that payments are made primarily in the first and third quarters. Other transfers indicate funds were moved as anticipated for the year in the first and second quarters. BUDGET ADJUSTMENTS Budget adjustments and reclassifications totaling a net $1,234,263 or an estimated 1% of the total budgeted operating expenses were made during the quarter and are explained in detail on the enclosed report. Respectfully submitted, Andrew Rogerson Chancellor

UNIVERSITY OF ARKANSAS AT LITTLE ROCK Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Student tuition & fees 76,816,725 41,096,947 53.5% 76,816,725 41,096,947 53.5% (9,903,649) (4,951,825) 50.0% (9,903,649) (4,951,825) 50.0% (13,383,571) (6,691,786) 50.0% (13,383,571) (6,691,786) 50.0% Patient services Federal and county appropriations Grants and contracts 35,750,012 14,146,883 39.6% 35,750,012 14,146,883 39.6% Sales/services of educational departments 818,027 368,173 45.0% 473,751 519,804 109.7% 1,291,778 887,977 68.7% Insurance plan Auxiliary enterprises: Athletics 6,286,288 3,636,191 57.8% 6,286,288 3,636,191 57.8% (527,485) (263,743) 50.0% (163,691) (81,846) 50.0% (691,176) (345,589) 50.0% (936,059) (468,030) 50.0% (936,059) (468,030) 50.0% Housing/food service 9,954,534 5,099,707 51.2% 9,954,534 5,099,707 51.2% (1,387,073) (693,537) 50.0% (430,442) (215,221) 50.0% (1,817,515) (908,758) 50.0% (2,461,463) (1,230,732) 50.0% (2,461,463) (1,230,732) 50.0% Bookstore 430,000 175,082 40.7% 430,000 175,082 40.7% (56,969) (28,485) 50.0% (17,679) (8,840) 50.0% (74,648) (37,325) 50.0% (101,096) (50,548) 50.0% (101,096) (50,548) 50.0% Other auxiliary enterprises 1,849,539 1,003,879 54.3% 1,849,539 1,003,879 54.3% Other operating revenues 2,271,051 1,525,171 67.2% 2,050,000 1,411,214 68.8% 4,321,051 2,936,385 68.0% TOTAL OPERATING REVENUES 68,030,627 37,052,701 54.5% 17,908,549 9,608,952 53.7% 21,391,574 7,636,805 35.7% 107,330,750 54,298,458 50.6% OPERATING EXPENSES Compensation & benefits 95,239,488 45,709,189 48.0% 6,318,057 2,992,265 47.4% 16,408,810 8,989,185 54.8% 117,966,355 57,690,639 48.9% Supplies & services 22,143,825 8,486,150 38.3% 9,772,402 4,015,600 41.1% 25,911,676 8,203,337 31.7% 57,827,903 20,705,087 35.8% Scholarships & fellowships 4,911,943 2,776,808 56.5% 2,110,607 1,087,694 51.5% 9,648,683 4,063,465 42.1% 16,671,233 7,927,967 47.6% Insurance plan Depreciation 15,960,411 7,980,206 50.0% 15,960,411 7,980,206 50.0% Contingency 1,074,187-268,993-1,343,180 TOTAL OPERATING EXPENSES 123,369,443 56,972,147 46.2% 18,470,059 8,095,559 43.8% 67,929,580 29,236,193 43.0% 209,769,082 94,303,899 45.0% OPERATING LOSS (55,338,816) (19,919,446) 36.0% (561,510) 1,513,393-269.5% (46,538,006) (21,599,388) 46.4% (102,438,332) (40,005,441) 39.1%

UNIVERSITY OF ARKANSAS AT LITTLE ROCK Budget Adjustments Made in the Quarter Ended December 31, 2017 Beginning End Line Item of Q Budget Adjustments of Q Budget Fund Explanation % Change Student tuition & fees (76,719,761) (96,964) (76,816,725) E&G Increase for Weekend MBA program and Distance Education Tech fees 0% Sales/services of educational departments (795,241) (22,786) (818,027) E&G Increase for funds received from UA eversity 3% Other operating revenues (2,228,197) (42,854) (2,271,051) E&G Increase for various reimbursements and miscellaneous revenue 2% Compensation & benefits 94,678,262 561,226 95,239,488 E&G Primarily for adjustments for lecturers, interim appointments, graduate assistants, special stipends, and non-credit course support 1% Supplies & services 22,735,694 (591,869) 22,143,825 E&G Primarily adjusted to cover additional compensation and benefits incurred -3% Scholarships & fellowships 4,795,628 116,315 4,911,943 E&G Additional awards for graduate assistants and various other scholarships 2% Contingency 1,103,088 (28,901) 1,074,187 E&G Minor adjustment to cover compensation -3% Gifts (170,455) (402,928) (573,383) E&G Primarily for funds received from the foundation for various activities 236% Investment income (210,500) (4,814) (215,314) E&G Adjustment for additional earnings 2% Transfers (other) 6,271,011 513,575 6,784,586 E&G To redistribute and correct funds 8% Compensation & benefits 6,299,064 18,993 6,318,057 Aux Minor adjustments for various salaries 0% Supplies & services 8,803,036 969,366 9,772,402 Aux Additional funds not previously budgeted, but rolled from the prior year 11% Transfers (other) (3,486,401) (988,359) (4,474,760) Aux To redistribute and correct funds 28% Compensation & benefits 15,649,331 759,479 16,408,810 Other Increase for new grant funded positions in the new fiscal year 5% Transfers (other) (2,784,610) 474,784 (2,309,826) Other To redistribute and correct funds -17% Total adjustments 1,234,263

University of Arkansas for Medical Sciences

University of Arkansas at Monticello

UNIVERSITY OF ARKANSAS AT MONTICELLO EXECUTIVE SUMMARY Enclosed are the quarterly reports for the University of Arkansas at Monticello for the quarter ended December 31, 2017. Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Quarter Ended December 31, 2017 Unrestricted Educational and General (E&G) Revenues exceeded Unrestricted E&G Expenses by $2,031,582 as of December 31, 2017. This is shown in the Actual Year-to-Date column for E&G as Increase in Net Position. Unrestricted Auxiliary Expenses exceeded Unrestricted Auxiliary Revenues by $670,225 for the second quarter shown as Actual Year-to-Date for Auxiliary. The Other category shown on the report includes the Restricted E&G Fund, Restricted Auxiliary, Plant Funds, Endowment Funds and Loan Funds. As shown in the Actual Year-to-Date column, these expenses exceeded the revenues by $1,151,657 for the quarter ending December 31, 2017. There are no material variances to explain in this second quarter report. Budget Adjustments Made in the Quarter Ended December 31, 2017 Several budget adjustments were made during the second quarter and these adjustments are explained in detail on the enclosed report. Karla Hughes Chancellor

UNIVERSITY OF ARKANSAS AT MONTICELLO Actual and Budgeted Revenues, Expenses and Changes in Net Position For the Six Months Ended December 31, 2017 Educational & General Auxiliary Other Total Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget Annual Budget ACTUAL % of Budget as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized as of End of Q Year-to-Date Realized OPERATING REVENUE Student tuition & fees 18,559,011 10,891,104 58.7% 18,559,011 10,891,104 58.7% (2,108,025) (1,358,363) 64.4% (627,894) (343,125) 54.6% (2,735,919) (1,701,488) 62.2% (5,059,006) (2,697,878) 53.3% (5,059,006) (2,697,878) 53.3% Patient services Federal and county appropriations Grants and contracts 4,950,227 1,573,119 31.8% 4,950,227 1,573,119 31.8% Sales/services of educational departments 154,500 139,197 90.1% 154,500 139,197 90.1% Insurance plan Auxiliary enterprises: Athletics 1,202,448 684,379 56.9% 1,202,448 684,379 56.9% (77,341) (49,837) 64.4% (23,037) (12,589) 54.6% (100,378) (62,426) 62.2% (185,609) (98,982) 53.3% (185,609) (98,982) 53.3% Housing/food service 3,872,423 2,186,847 56.5% 3,872,423 2,186,847 56.5% (486,940) (313,773) 64.4% (145,039) (79,260) 54.6% (631,979) (393,033) 62.2% (1,168,597) (623,192) 53.3% (1,168,597) (623,192) 53.3% Bookstore 703,253 274,270 39.0% 703,253 274,270 39.0% (31,830) (20,510) 64.4% (9,481) (5,181) 54.6% (41,311) (25,691) 62.2% (76,388) (40,736) 53.3% (76,388) (40,736) 53.3% Other auxiliary enterprises 1,060,171 567,428 53.5% 1,060,171 567,428 53.5% (87,951) (56,673) 64.4% (26,197) (14,316) 54.6% (114,148) (70,989) 62.2% (211,071) (112,560) 53.3% (211,071) (112,560) 53.3% Other operating revenues 431,319 175,958 40.8% 40 431,319 175,998 40.8% TOTAL OPERATING REVENUES 16,352,743 9,407,103 57.5% 6,006,647 3,258,453 54.2% (1,750,444) (2,000,189) 114.3% 20,608,946 10,665,367 51.8% OPERATING EXPENSES Compensation & benefits 24,175,837 11,667,273 48.3% 1,736,730 856,234 49.3% 1,587,476 992,180 62.5% 27,500,043 13,515,687 49.1% Supplies & services 6,614,567 3,186,374 48.2% 3,363,629 1,840,225 54.7% 2,455,604 351,560 14.3% 12,433,800 5,378,159 43.3% Scholarships & fellowships 1,709,099 1,101,305 64.4% 509,070 278,192 54.6% 4,101,619 2,187,313 53.3% 6,319,788 3,566,810 56.4% Insurance plan Depreciation 3,664,070 1,803,793 49.2% 3,664,070 1,803,793 49.2% Contingency 725,667 725,667 TOTAL OPERATING EXPENSES 33,225,170 15,954,952 48.0% 5,609,429 2,974,651 53.0% 11,808,769 5,334,846 45.2% 50,643,368 24,264,449 47.9% OPERATING LOSS (16,872,427) (6,547,849) 38.8% 397,218 283,802 71.4% (13,559,213) (7,335,035) 54.1% (30,034,422) (13,599,082) 45.3%

UNIVERSITY OF ARKANSAS AT MONTICELLO Budget Adjustments Made in the Quarter Ended December 31, 2017 Beginning End Line Item of Q Budget Adjustments of Q Budget Fund Explanation % Change Contingency 932,481 (206,814) 725,667 E&G Contingency funds of $206,814 were transferred to line items as indicated below. -22% Compensation and Benefits 24,126,148 49,689 24,175,837 E&G Supplies and Services 6,457,442 157,125 6,614,567 E&G E&G Salary budgets were increased to cover Career Service Payments for $13,200 and to budget additional Non-Student Extra Help in the amount of $22,123. The amount of $14,366 was also budgeted for Salary Stipends. Transfers were made from Contingency. E&G Maintenance and Operation budgets were increased to budget the following: Building Maintenance Operations $90,000; Two Kawasaki Mules for Grounds Maintenance $22,000; Networking Equipment $16,122; Electromechanical Equipment for the Crossett Campus $15,000; AASCU Professional Fees $8,920; and miscellaneous one-time maintenance and operation needs $5,083. These budget increases totaling $157,125 were made from Contingency. 0% 2% Grants and contracts (4,853,802) (96,425) (4,950,227) Restricted Revenue was budgeted for new federal, state, and private grants awarded in FY 18. 2% Compensation and Benefits 1,568,884 18,592 1,587,476 Restricted Salaries, wages, and fringe benefits were budgeted for new grants awarded in FY 18. 1% Suppplies and Services 2,377,771 77,833 2,455,604 Restricted Supplies and expenses were budgeted for new grants awarded in FY 18. 3% Total adjustments -

University of Arkansas at Pine Bluff

UNIVERSITY OF ARKANSAS AT PINE BLUFF EXECUTIVE SUMMARY Current Unrestricted & Other Funds Budgeted and Actual Revenues, Expenditures and Changes in Net Position For the Six Months Ended December 31, 2017 Total actual E & G and auxiliary revenues of $28,432,727 (net) were $2,188,617 more than total actual E & G and auxiliary expenditures, debt service and non-mandatory transfers of $26,244,110. The following non-mandatory transfers of $661,223 were made from the E&G fund: (1) $569,117 to athletics and (2) $92,106 to the student union, both of which represent 50% of the amount expected to be transferred to these auxiliary units by year-end. Budget Adjustments: During the second quarter, the University made $3,870,206 in budget reductions to its operating budget. The University did not meet its projections during the fall semester and elected to reduce the budget. The following budget lines were affected: E&G student tuition and fee revenues decreased by $3,870,206, E&G compensation & benefit expenses decreased by $2,164,572, E&G supplies and services expenses decreased by $2,272,265 and the E&G contingency budget line increased by $574,561. The University also increased E&G other operating revenues by $7,930 for the collection of nursing fees collected from the student for nursing supplies. The athletic department moved funds from their private gifts account in the amount of $142,000 to cover Auxiliary operating expenses in supplies and services. The housing department moved $2,700 from supplies and service to compensation & benefits to cover additional extra help workers. Variances: E&G revenues from sales/services of educational departments are below expected revenue projection (33% of realized budget) because of the decrease in activity from various educational departments.

E&G other operating revenues are above the revenue projection (268% of the realized budget) due to the University receiving a refund on overpayment of taxes. Athletic revenues are below expected revenue projection (33% of realized budget) due to the department not generating expected revenues. The athletic department s revenues were below projections in the following areas: game guarantees, conference distributions, ticket sales, sponsorships and private donations. Grant revenues for operating grants are behind expected amount because the University had not received funds from various operating grants. These grants operate on a reimbursement. University will receive the funds within the next quarter. Sales/services of educational departments in the other funds exceed revenue projection (89% of realized budget) due to increases in daycare revenue. State appropriations in the other funds are below the revenue projection (0% of realized budget) since the University has not received any additional funding from the State. Investment income in the other funds exceed revenue projection (132% of realized budget) due to University s investments performing well during the fiscal year. Dr. Laurence B. Alexander Chancellor