MINUTES OF THE FINANCE COMMITTEE OF THE UNIVERSITY OF LOUISVILLE BOARD OF TRUSTEES January 9, 2014 In Open Session Members of the Finance Committee of the University of Louisville Board of Trustees met at 1:06 p.m. on January 9, 2014, in the Jefferson Room, Grawemeyer Hall, with members present and absent as follows: Present: Absent: Ms. Phoebe Wood, Chair, via phone Dr. Larry Benz, Vice Chair Mr. Stephen Campbell Ms. Carrie Mattingly Mr. Robert W. Rounsavall, III Dr. Joe Steffen Dr. Kevin Cosby Other Trustees Present: Mr. Robert P. Benson Mr. Douglas Hall Mr. Bruce Henderson Dr. Robert Curtis Hughes Ms. Angela Lewis-Klein Ms. Brucie Moore Ms. Emily Bingham From the University: Dr. James R. Ramsey, President Dr. David Dunn, EVP for Health Affairs Dr. William Pierce, EVP for Research and Innovation Dr. Shirley Willihnganz, Executive Vice President and Provost Mr. Jason Tomlinson, Asst.Vice President for Finance Dr. Tom Jackson, Vice President for Student Affairs Mr. Keith Inman, Vice President for University Advancement Ms. Terri Rutledge, Asst. VP for Business Affairs Ms. Becky Simpson, Senior Assoc. VP, Communications and Marketing Ms. Susan Howarth, Director of Budget, Vice President for Finance Ms. Anne Rademaker, Manager, General Accounting and Reporting Mrs. Kathleen Smith, Assistant Secretary Mr. Jake Beamer, Board Liaison I. Call to Order
Having determined a quorum present, Vice Chair Benz called the meeting to order at 1:06 p.m. Approval of Minutes, 10-10-2013 Dr. Steffen made a motion, which Mr. Campbell seconded, to approve minutes of January 9, 2014. The motion passed. II. Action Item: Approval of Bond Refinancing Chair Wood introduced Mr. David Dunn, Executive Vice President for Health Affairs. Mr. Dunn stated that the projects of having steam and chilled water plants in virtually all of the Health Science Center (HSC) buildings and renovating the Medical Center laundry is shared by most of the departments within the HSC. Mr. Dunn also stated that the bonds need renewal and introduced Ed Dusch, manager of Louisville Medical Center to further explain the situation. Ed Dusch thanked the board for their time. Mr. Dusch explained how the Louisville Medical Center (LMC) intends to install steam and chilled water plants, for virtually all of the HSC buildings as well as renovating the LMC laundry. The two projects were amortized for $6.3 million for 10 years since 2009 although, the terms were set for only 5 years. Mr. Dusch went on to explained how they are going to participate in a taxable private placement with the Fifth Thirds Banks, who is the holder of the 2009 bond. Specifically, the LMC laundry needed to replace heating and cooling equipment as well as some other major and miscellaneous pieces of laundry equipment. This capital spending will be taxable because of less expensive legal fees. The positive benefits of a taxable finance is that although Norton or the University may be purchasing the steam and chilled water equipment there are some for profit tenants that may cause problems with the revenue stream due to legality. Ed Dusch finished by fielding questions from the board. RECOMMENDATION: The President recommends that the Board of Trustees adopt the Resolution for the purposes of: 1. approving the issuance by Metro Government of taxable revenue bonds in one or more series for the purpose of equipping and renovating the central medical laundry facility operated by Louisville Medical Center, Inc. (the Laundry ) in the amount of $1,000,000. 2. authorizing officers of the University of Louisville (the University ) to approve and execute all documents necessary to accomplish such issuance. WHEREAS, the University of Louisville ( UofL ) owns and operates healthcare and educational facilities located in downtown Louisville, Kentucky; and
WHEREAS, the Medical Center Commission of Louisville/Jefferson County Metro Government, Kentucky (the Commission ) owns a central medical laundry facility located at 1400 Story Avenue in downtown Louisville (the Laundry ) and operates the Laundry with the advice and assistance of Louisville Medical Center, Inc. ( LMC ); and WHEREAS, UofL is a party to an Amended and Restated Central Laundry Services Contract dated as of October 1, 2012 (the Laundry Contract ), whereby LMC and the Commission have agreed to provide medical laundry services to (i) UofL; (ii) Jewish Hospital & St. Mary s Healthcare, Inc.; (iii) Norton Healthcare, Inc.; and (iv) University Medical Center, Inc. (collectively, the User Institutions ) in exchange for the agreement of the User Institutions to pay the operating costs of the Laundry and the debt service of any revenue bonds issued by Metro Government to finance or refinance improvements to the Laundry; and WHEREAS, LMC and the Commission desire to finance the acquisition, construction and installation of new air conditioning equipment, washing equipment, linen carts and related equipment and property or to permanently finance interim bank debt incurred to finance the same (the Project ) through the issuance by Metro Government of its Taxable Revenue Bonds, Series 2014 (Louisville Medical Center Laundry Facility Project) in one or more series in an approximate aggregate principal amount of $1,000,000 (the 2014 Bonds ); and WHEREAS, the Board of Trustees of UofL desires to approve the issuance of the 2014 Bonds to finance the Project; NOW THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY OF LOUISVILLE HEREBY RESOLVES AS FOLLOWS: Section 1. Incorporation of Preamble. The facts and recitations set out in the preamble of these Resolutions are adopted and incorporated as a part hereof, and the terms defined in said preamble shall have the same meanings when used herein. Section 2. Approval of 2014 Bonds. The proposed financing of the Project to be achieved by Metro Government s issuance of the 2014 Bonds in one or more series is hereby approved and each, and any one, of the President, Secretary and Treasurer of UofL is authorized and directed to execute and deliver on behalf of UofL all documents necessary to accomplish such financing. CERTIFICATE OF SECRETARY I, Kathleen M. Smith, hereby certify that I am the duly elected, qualified and acting Assistant Secretary of the Board of Trustees of the University of Louisville, and I certify that the foregoing is a true and accurate copy of the Resolution of the Board of Trustees of the University of Louisville, adopted on April 10, 2014. IN TESTIMONY WHEREOF, witness my signature on this 10th day of April, 2014. RECOMMENDATION:
The President recommends that the Board of Trustees adopt the Resolution attached hereto as Exhibit A for the purposes of: 1. approving the issuance by Metro Government of taxable revenue refunding bonds in one or more series for the purpose of refunding the Louisville/Jefferson County Metro Government, Kentucky, Louisville Medical Center Tax Exempt Revenue Bonds, Series 2009 for the benefit of the Steam and Chilled Water Plant (the Plant ) in the approximate outstanding principal amount of $3,930,000; and 2. authorizing officers of the University of Louisville (the University ) to approve and execute all documents necessary to accomplish such refunding. WHEREAS, the University of Louisville ( UofL ) owns and operates healthcare and educational facilities located in downtown Louisville, Kentucky; and WHEREAS, Louisville Medical Center, Inc. ( LMC ) owns a steam and chilled water plant located at 235 Abraham Flexner Way in downtown Louisville (the Plant ) and provides advice and assistance to the Medical Center Commission of Louisville/Jefferson County Metro Government, Kentucky (the Commission ), which operates the Plant; and WHEREAS, UofL previously entered into a User Contract dated as of April 23, 2002 by and among (i) UofL, (ii) the County of Jefferson, Kentucky (the Predecessor County ), (iii) LMC, (iv) Jewish Hospital & St. Mary s Healthcare, Inc. ( JHSMH ), (v) Norton Healthcare, Inc. ( Norton ), (vi) University Medical Center, Inc. ( UofL Hospital ) and (vii) Kentucky Community & Technical College System ( KCTCS ) whereby LMC agreed to supply UofL, JHSMH, Norton, UofL Hospital and KCTCS (collectively, the User Institutions ) steam and chilled water from the Plant for purposes of providing heating and cooling to certain of the User Institutions facilities in exchange for the User Institutions collective agreement to pay the operating costs of the Plant and the debt service of revenue bonds issued to finance or refinance improvements to the Plant (the 2002 Plant Contract ); and WHEREAS, Louisville/Jefferson County Metro Government, Kentucky, as the statutory successor of the Predecessor County ( Metro Government ), previously issued its Louisville/Jefferson County Metro Government, Kentucky, Louisville Medical Center Tax Exempt Revenue Bonds, Series 2009 in the original principal amount of $6,550,000 (the Original 2009 Bonds ) in accordance with the requirements of the 2002 Plant Contract to finance improvements to the Plant; and WHEREAS, Metro Government, LMC and the User Institutions previously entered into a First Supplemental User Contract dated as of October 1, 2011 to amend the 2002 Plant Contract (the First Supplemental Plant Contract ); and WHEREAS, Metro Government previously issued its Louisville/Jefferson County Metro Government, Kentucky, Louisville Medical Center Taxable Revenue Bonds, Series 2011 in the original principal amount of $11,000,000 (the 2011 Bonds ) pursuant to the requirements of the 2002 Plant Contract, as amended, for the purpose of financing improvements to the Plant; and
WHEREAS, Metro Government previously issued its Louisville/Jefferson County Metro Government, Kentucky, Louisville Medical Center Tax Exempt Revenue Bonds, Series 2009 in the original principal amount of $5,240,000 for the purpose of reissuing the Original 2009 Bonds with a lower interest rate (the 2009 Bonds ); and WHEREAS, Metro Government, LMC and the User Institutions previously entered into a Second Supplemental User Contract dated as of October 1, 2012 to further amend the 2002 Plant Contract (the Second Supplemental Plant Contract ); and WHEREAS, Metro Government previously issued its Louisville/Jefferson County Metro Government, Kentucky, Refunding Revenue Bonds, Series 2012A (Louisville Medical Center, Inc. Steam and Chilled Water Plant Project) in the original principal amount of $7,510,000 (the 2012A Bonds ) and its Louisville/Jefferson County Metro Government, Kentucky, Taxable Refunding Revenue Bonds, Series 2012B (Louisville Medical Center, Inc. Steam and Chilled Water Plant Project) in the original principal amount of $615,000 (the 2012B Bonds and, together with the 2012A Bonds, the 2012 Bonds ), pursuant to the requirements of the 2002 Plant Contract, as amended by the First Supplemental Plant Contract and as further amended by the Second Supplemental Plant Contract (as amended, the Plant Contract ) for the purpose of refinancing improvements to the Plant; and WHEREAS, the 2009 Bonds, the 2011 Bonds and the 2012 Bonds are all secured on a parity basis pursuant to the Plant Contract and their related bond trust indentures and the User Institutions have paid and continue to pay the debt service required for the 2009 Bonds, the 2011 Bonds and the 2012 Bonds to LMC pursuant to the requirements of the Plant Contract; and WHEREAS, LMC and the Commission desire (i) to reduce the principal balance of the 2009 Bonds using remaining unused proceeds from the 2011 Bonds in an approximate amount of $1,000,000 and (ii) to refund the remaining principal balance of the 2009 Bond through the issuance by Metro Government of its Taxable Refunding Revenue Bonds, Series 2014 (Louisville Medical Center Steam and Chilled Water Plant Project) in one or more series of taxable bonds in an approximate aggregate principal amount of $3,000,000 (the 2014 Bonds ) on a parity with the 2011 Bonds and the 2012 Bonds; and WHEREAS, the Board of Directors of UofL desires to approve the refunding of the 2009 Bonds through the issuance of the 2014 Bonds; NOW THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY OF LOUISVILLE HEREBY RESOLVES AS FOLLOWS: Section 1. Incorporation of Preamble. The facts and recitals set out in the preamble of these Resolutions are adopted and incorporated as a part hereof, and the terms defined in said preamble shall have the same meanings when used herein. Section 2. Approval of Refunding of 2009 Bonds. The proposed refunding of the 2009 Bonds to be achieved by Metro Government s issuance of the 2014 Bonds in one or more series on a parity with the 2011 Bonds and the 2012 Bonds is hereby approved and
each and any one of the President, Secretary and Treasurer of UofL is authorized and directed to execute and deliver on behalf of UofL all documents necessary to accomplish such refunding, including any certificates related thereto. CERTIFICATE OF SECRETARY I, Kathleen M. Smith, hereby certify that I am the duly elected, qualified and acting Assistant Secretary of the Board of Trustees of the University of Louisville, and I certify that the foregoing is a true and accurate copy of the Resolution of the Board of Trustees of the University of Louisville, adopted on April 10, 2014. IN TESTIMONY WHEREOF, witness my signature on this 10th day of April, 2014. Dr. Benz made a motion, which Dr. Steffen second, to approve the Bond Refinancing. The motion passed. III. Information Item: Interim Financial Statements Chair Wood introduced the webinar for Interim Financial Statements. The webinar gave a high level look at the first half of the year. Ms. Howarth answered questions from the board. Howarth explained how the University remains in a $1.3 billion balance. The revenue expenses are tracking well with the budget. She noted that the trends are better than last year, $126 million compared to $110 million. Chair Wood discussed how they are on track to receive all of the savings and more, a $7.5-8 million benefit. The board is making plans for a budget workshop, similar to last year, which seemed to be a valuable piece of work. The workshop is scheduled for May 6 th, 2014 just before the actual meeting. No action required. IV. Adjournment Ms. Mattingly made a motion, which Mr. Rounsavall seconded, to ajourn the meeting at 1:17 p.m. The motion passed. Signature on file Assistant Secretary
UNIVERSITY OF LOUISVILLE AND AFFILIATED CORPORATIONS Financial Statements September 30, 2013 and 2012 Table of Contents: Statements of Net Assets Consolidating Schedule...1 Statements of Revenues, Expenses and Changes in Net Assets Consolidating Schedule...2 Consolidated Highlights...3 Budget vs. Actual Analysis...5 Financial Statement Video
University of Louisville and Affiliated Corporations A Component Unit of the Commonwealth of Kentucky Statements of Net Position September 30, 2013 and 2012 (In Thousands) 09/30/13 09/30/12 Total UL ULRF ULAA Total UL ULRF ULAA ASSETS Current Assets Cash and cash equivalents $ 124,281 $ 63,713 $ 8,982 $ 51,586 $ 130,720 $ 59,761 $ 38,587 $ 32,372 Deposit with bond trustee and escrow agent 12,365 6,055-6,310 12,824 6,665-6,159 Short-term investments 11,436 11,436 - - 2,974 2,974 - - Loans, accounts and contributions receivable, net 49,988 29,971 17,667 2,350 58,497 36,646 18,613 3,238 Due from University of Louisville Foundation, Inc. 4,952 4,952-13,248 13,248 - - Inventories 1,055 694 361-1,068 659 409 - Other assets 3,993 3,373 76 544 1,957 1,101 129 727 Total current assets 208,070 120,194 27,086 60,790 221,288 121,054 57,738 42,496 Noncurrent Assets Restricted cash and cash equivalents 21,827 19,894-1,933 59,591 51,598-7,993 Deposit with bond trustee 3,426 3,389-37 7,373 6,574-799 Loans, accounts and contributions receivable, net 46,271 21,966 1,037 23,268 37,654 22,604 478 14,572 Due from University of Louisville Foundation, Inc. 8,509 8,509 - - 8,348 8,348 - - Investments held with University of Louisville Foundation, Inc. 33,890 - - 33,890 35,452 - - 35,452 Other long-term investments 33,193 33,191 2-22,965 22,565 4 396 Other long-term assets 2,438 1,402-1,036 2,777 1,571-1,206 Capital assets, net 881,070 671,938 71,279 137,853 876,935 670,620 72,683 133,632 Total noncurrent assets 1,030,624 760,289 72,318 198,017 1,051,095 783,880 73,165 194,050 Total assets 1,238,694 880,483 99,404 258,807 1,272,383 904,934 130,903 236,546 LIABILITIES Current Liabilities Accounts payable and accrued liabilities 79,445 63,666 10,921 4,858 65,092 48,508 11,542 5,042 Deferred compensation and wages payable 1,233 - - 1,233 1,062 - - 1,062 Advances 9,667 466 8,738 463 17,123 522 15,528 1,073 Note payable to University of Louisville Foundation, Inc. 200 - - 200 200 - - 200 Bonds and notes payable 25,195 18,317-6,878 24,456 17,807-6,649 Total current liabilities 115,740 82,449 19,659 13,632 107,933 66,837 27,070 14,026 Noncurrent Liabilities Due to University of Louisville - (9,173) - 9,173 - (9,173) - 9,173 Due to related entities 316 - - 316 316 - - 316 Note payable to University of Louisville Foundation, Inc. 1,000 - - 1,000 1,200 - - 1,200 Deferred compensation and wages payable 7,329 - - 7,329 8,113 - - 8,113 Deposits 1,067 1,067 - - 913 913 - - Advances 4,720 1,377-3,343 5,248 1,739-3,509 Amounts due to federal government for student loan programs 16,525 16,525 - - 16,849 16,849 - - Other long-term liabilities 34,379 25,542 7,977 860 20,302 12,768 6,753 781 Bonds and notes payable 258,669 192,861-65,808 267,749 210,063-57,686 Total noncurrent liabilities 324,005 228,199 7,977 87,829 320,690 233,159 6,753 80,778 Total liabilities 439,745 310,648 27,636 101,461 428,623 299,996 33,823 94,804 DEFERRED INFLOWS Derivative fair market value 452 - - 452 551 - - 551 Service concession arrangements 5,560 5,560 - - 6,671 6,671 - - Total deferred inflows 6,012 5,560-452 7,222 6,671-551 NET POSITION Net investment in capital assets 618,266 466,150 71,295 80,821 614,413 469,608 74,782 70,023 Restricted for: Nonexpendable Scholarships and fellowships 1,595 - - 1,595 1,490 - - 1,490 Expendable Scholarships and fellowships 724 - - 724 700 - - 700 Research 1,194 (378) 1,572 - - - - - Instruction 628 628 - - - - - - Public service 299 137 162-425 425 - - Academic support - (6) 6-7 2 5 - Institutional support 17,670 15,607-2,063 10,446 8,385-2,061 Operation and maintenance of plant - - - - - - - - Loans 2,763 2,763 - - 2,573 2,573 - - Capital projects 34,605 23,990-10,615 38,350 34,731-3,619 Debt service 24,472 8,328-16,144 31,203 11,213-19,990 Unrestricted 90,721 47,056 (1,267) 44,932 136,931 71,330 22,293 43,308 Total net position $ 792,937 $ 564,275 $ 71,768 $ 156,894 $ 836,538 $ 598,267 $ 97,080 $ 141,191-1 -
OPERATING REVENUES University of Louisville and Affiliated Corporations A Component Unit of the Commonwealth of Kentucky Statements of Revenues, Expenses and Changes in Net Position Three Months Ended September 30, 2013 and 2012 (In Thousands) 09/30/13 09/30/12 Total UL ULRF ULAA Total UL ULRF ULAA Student tuition and fees, net of scholarship allowance of $34,247 in 2013 and $33,068 in 2012 $ 106,770 $ 106,770 $ 98,747 $ 98,747 Clinical services and practice plans 47,195 2,470 $ 44,725 42,423 648 $ 41,775 Federal grants and contracts 14,091 53 14,038 17,579 734 16,845 State and local grants and contracts 2,120 6 2,114 1,614 1 1,613 Nongovernmental grants and contracts 2,370 (5) 2,375 1,441 3 1,438 Sales and services of educational departments 6,269 6,276 (7) 7,238 7,237 1 Facilities and administrative cost recoveries 5,470-5,470 6,283-6,283 Auxiliary enterprises, net of discount of $587 in 2013 and $522 in 2012 4,801 4,801-5,341 5,341 - Intercollegiate athletics 31,404 - - $ 31,404 29,749 - - $ 29,749 Other operating revenues 981 660 321-762 653 109 - Total operating revenues 221,471 121,031 69,036 31,404 211,177 113,364 68,064 29,749 OPERATING EXPENSES Instruction 68,378 39,604 28,774-65,880 38,755 27,125 - Research 29,040 6,626 22,414-30,618 6,502 24,116 - Public service 19,450 2,583 16,867-20,402 2,615 17,787 - Academic support 23,746 13,456 10,290-21,250 13,140 8,110 - Student services 7,314 7,313 1-7,289 7,288 1 - Institutional support 14,647 14,401 246-14,222 14,102 120 - Operation and maintenance of plant 8,646 8,394 252-12,635 9,171 3,464 - Scholarships and fellowships 16,941 (2,113) 19,054-16,258 (2,613) 18,871 - Auxiliary enterprises 2,180 2,180 - - 2,559 2,559 - - Intercollegiate athletics 19,436 (3,361) - 22,797 17,966 (3,172) - 21,138 Depreciation and amortization 13,265 10,059 2,124 1,082 12,367 9,260 2,067 1,040 Total operating expenses 223,043 99,142 100,022 23,879 221,446 97,607 101,661 22,178 Operating loss (1,572) 21,889 (30,986) 7,525 (10,269) 15,757 (33,597) 7,571 NONOPERATING REVENUES (EXPENSES) State appropriations 44,354 44,354 - - 42,607 42,607 - - Gifts 20,270 104 547 19,619 17,765-57 17,708 Nonexchange grants and contracts 17,708-17,708-17,641-17,641 - Investment income 896 802-94 480 376-104 Realized and unrealized gain/(loss) on investments 521 (11) - 532 1,440 - (11) 1,451 Interest on capital asset-related debt (2,585) (1,855) - (730) (3,155) (2,461) - (694) Other nonoperating revenues 223 108 115-243 243 - - Net nonoperating revenues 81,387 43,502 18,370 19,515 77,021 40,765 17,687 18,569 Income before other revenues, expenses, gains and losses 79,815 65,391 (12,616) 27,040 66,752 56,522 (15,910) 26,140 Capital gifts 7,865 - - 7,865 755 - - 755 Net assets transferred from/(to) University of Louisville Foundation, Inc. 572 590 (3,157) 3,139 (346) 2,925 (326) (2,945) Total other revenues 8,437 590 (3,157) 11,004 409 2,925 (326) (2,190) Increase in net assets 88,252 65,981 (15,773) 38,044 67,161 59,447 (16,236) 23,950 NET POSITION Net position-beginning of year 704,685 498,294 87,541 118,850 769,377 538,820 113,316 117,241 Net position-end of period $ 792,937 $ 564,275 $ 71,768 $ 156,894 $ 836,538 $ 598,267 $ 97,080 $ 141,191-2 -
Statements of Net Assets: University of Louisville Financial Statement Highlights Three Months Ended September 30, 2013 The University remains in a strong position, with assets of $1.2 billion and net assets of $793 million. o Assets: Current assets decreased $13 million due to decreased accounts receivable from University Medical Center and the University of Louisville Foundation, Inc. This decrease relates to the timing of payments due from the entities. Restricted cash and cash equivalents decreased $38 million due to the use of funds related to capital projects. The most significant capital project was the Student Recreation Center, with expenses of $23 million since September 2012. o Liabilities and Deferred Inflows: Current liabilities increased due to the $6 million current portion of the voluntary separation incentive plan and the $5 million exit fee payable to the athletic conference. Bonds and notes payable decreased due to payment of approximately $26 million in outstanding debt since last September, offset by the issuance of $18 million in notes payable. Deferred inflows primarily represent future cash inflows from the service concession arrangement with Sodexo, the University s food service provider. o Net Assets: A comparison of the $90.8 and $136.9 million in Unrestricted Net Assets as of September 30, 2013 and 2012 respectively, is as follows: 2013 2012 General Funds $ 33.4 $ 62.0 Invested with UL Foundation, Inc. 28.6 29.8 Athletics 16.3 13.5 IRIG/RIF 12.9 13.4 Clinical (13.9) 9.3 Auxiliary 8.0 5.3 Service Centers 6.2 6.6 Other Research Funds 0.7 1.0 Deficit Restricted Net Assets (1.4) (4.0) Total $ 90.8 $ 136.9-3 -
University of Louisville Financial Statement Highlights Three Months Ended September 30, 2013 Statement of Revenues, Expenses, and Changes in Net Assets The University recognized an increase in total net assets of $88 million during the three months ended September 30, 2013, as compared to $67 million in the prior year. o Operating Revenues and Expenses: Revenues increased $10 million, or 5%, over the same period in the prior year. The majority of the increase relates to an $8 million increase in tuition due to increased rates and increased class size. Expenses remained steady at $223 million, increasing only 1% over the prior year. The most significant change was the $4 million decrease in operation and maintenance of plant due to the timing of asset entry adjustments. o Nonoperating Revenues and Expenses: Capital gifts increased $7 million over the prior year due to significant gifts to the Mark and Cindy Lynn Soccer Stadium and Athletic Academic Center. - 4 -
University of Louisville General Funds Budget vs. Actual Three Months Ended September 30, 2013 Annual Budget Actual Variance to Budget Percent of Variance to Budget REVENUES State appropriations $ 164,186 $ 50,247 $ 113,939 69% Tuition and fees 275,687 141,010 134,677 49% Clinical 13,861 2,470 11,391 82% Sales and services 3,418 926 2,492 73% Auxiliary 14,667 5,389 9,278 63% Facilities and administrative cost recoveries 11,632 2,584 9,048 78% Interest income 3,518 801 2,717 77% Other revenue 15,131 1,413 13,718 91% Total revenue 502,100 204,840 297,260 59% EXPENSES Instruction 162,780 40,046 122,734 75% Research 31,810 7,512 24,298 76% Public service 10,508 2,635 7,873 75% Academic support 59,194 15,072 44,122 75% Student services 28,577 7,635 20,942 73% Institutional support 58,055 17,389 40,666 70% Operations and maintenance 51,092 10,178 40,914 80% Scholarships and fellowships 54,566 30,191 24,375 45% Auxiliary 9,876 2,239 7,637 77% Service centers 1,709 (3,733) 5,442 318% Debt service 22,901 11,548 11,353 50% Hospital 19,744 5,929 13,815 70% Total expenses 510,812 146,641 $ 364,171 71% Net (decrease)/increase $ (8,712) $ 58,199-5 -
University of Louisville General Funds Budget vs. Actual Analysis Three Months ended September 30, 2013 REVENUES Overall revenues are on budget, with 41% of budgeted revenue recognized as of September 30, 2013. This is slightly more than the expected 25% due to the cyclic nature of tuition revenue. Tuition revenue Approximately 51% of tuition and fee budgeted revenue has been recognized. This is due to the fact that Fall and Spring tuition comprise approximately 93% of total tuition, and as of September 30, 2013, half of this (the Fall Semester) has been realized. Clinical revenue The majority of the revenue budgeted for clinical and hospital revenue is the $11 million of expected revenue from the surplus cash of University Medical Center, Inc. As of September 30, 2013, the University has received approximately $2 million of these funds. Other revenue This includes the transfers to the general fund related to debt service payments funded by other entities such as the Research Foundation and Athletic Association. These funds are transferred when the debt payments are due, generally in November and May. EXPENSES Overall expenses match closely with budget as there is 71% of the budget remaining for the remainder of the year. Scholarships and Fellowships Due to the timing of the tuition charges, approximately 55% of the scholarship budget has been used. Service Centers The service centers had approximately $5 million in expenses that were offset with $9 million in charges to other departments due to the timing of charges from the Information Technology departments. Debt Service As of September 30, 2013, interest payments have been made related to the General Receipts Series Bonds. This represents half of the total outstanding bond issues supported by the general fund. - 6 -