Financial Statements
Consolidated Statement of Net Assets
June 30,
2006
2005
(in thousands)
ASSETS
64
Current Assets:
Cash and cash equivalents
Operating investments
Investments for capital activities
Investments for student loan activities
Investment trade settlements receivable
Accounts receivable, net
Current portion of notes and pledges receivable, net
Current portion of prepaid expenses and other assets
Total Current Assets
Noncurrent Assets:
Endowment, life income and other investments
Notes and pledges receivable, net
Prepaid expenses and other assets
Capital assets, net
Total Noncurrent Assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Current Liabilities:
Accrued compensation and other
Accounts payable
Investment trade settlements payable
Deferred revenue
Current portion of insurance and benefits obligations
Commercial paper and current portion of bonds payable
Deposits of affiliates and others
Total Current Liabilities
Noncurrent Liabilities:
Deposits of affiliates and other
Insurance and benefits obligations
Obligations under life income agreements
Government loan advances
Bonds payable
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted:
Nonexpendable
Expendable
Unrestricted (see Note 8)
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
$
413,605
707,101
649,176
30,084
24,109
380,542
64,516
60,447
2,329,580
$
369,226
751,435
631,174
24,976
821
355,866
52,916
52,377
2,238,791
5,963,424
226,879
17,052
3,453,441
9,660,796
$ 11,990,376
5,196,486
219,277
15,394
3,105,468
8,536,625
$ 10,775,416
$
$
249,590
236,904
46,581
158,537
55,986
136,851
21,288
905,737
234,541
227,161
736
158,122
56,890
54,871
12,843
745,164
125,789
156,113
51,399
85,672
781,521
1,200,494
2,106,231
110,035
166,120
38,409
84,886
820,453
1,219,903
1,965,067
2,615,289
2,342,031
884,209
2,774,719
3,609,928
9,884,145
$ 11,990,376
818,074
2,369,729
3,280,515
8,810,349
$ 10,775,416
The accompanying notes are an integral part of the consolidated financial statements.
Consolidated Statement of Revenues, Expenses and Changes in Net Assets
Year Ended June 30,
2006
2005
(in thousands)
OPERATING REVENUES
Student tuition and fees
Less scholarship allowances
Net student tuition and fees
Federal grants and contracts
State and local grants and contracts
Nongovernmental sponsored programs
Sales and services of educational departments
Auxiliary enterprises:
Patient care revenues and managed care premiums
Student residence fees (net of scholarship allowances
of $15,689,000 in 2006 and $14,801,000 in 2005)
Other revenues
Student loan interest income and fees
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Compensation and benefits
Supplies and services
Depreciation
Scholarships and fellowships
TOTAL OPERATING EXPENSES
Operating loss
NONOPERATING REVENUES (EXPENSES)
State educational appropriations
Private gifts for other than capital and endowment purposes
Net investment income
Interest expense
TOTAL NONOPERATING REVENUES, NET
Income before other revenues (expenses)
OTHER REVENUES (EXPENSES)
State capital appropriations
Capital gifts and grants
Private gifts for endowment purposes
Other
TOTAL OTHER REVENUES, NET
Increase in net assets
Net Assets, Beginning of Year
NET ASSETS, END OF YEAR
$
834,365
158,659
675,706
691,934
9,282
117,213
107,025
$
765,201
146,226
618,975
674,033
13,843
120,433
110,089
1,990,453
1,841,240
70,229
119,740
1,368
3,782,950
66,254
113,977
1,831
3,560,675
2,757,920
1,150,214
264,028
83,839
4,256,001
2,592,098
1,104,824
253,733
75,398
4,026,053
(473,051)
(465,378)
364,908
90,042
959,841
(27,128)
1,387,663
374,905
107,181
874,611
(21,738)
1,334,959
914,612
869,581
20,126
64,787
86,228
(11,957)
159,184
7,023
118,962
78,272
6,568
210,825
1,073,796
1,080,406
8,810,349
$ 9,884,145
7,729,943
$ 8,810,349
The accompanying notes are an integral part of the consolidated financial statements.
65
Financial Statements
Consolidated Statement of Cash Flows
Year Ended June 30,
2006
2005
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Student tuition and fees
Federal, state and local grants and contracts
Nongovernmental sponsored programs
Sales and services of educational and other departmental activities
Patient care revenues and managed care premiums
Student residence fees
Payments to employees
Payments for benefits
Payments to suppliers
Payments for scholarships and fellowships
Student loans issued
Student loans collected
Student loan interest and fees collected
NET CASH USED IN OPERATING ACTIVITIES
$
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments, net
Proceeds from sales and maturities of investments
Purchases of investments
Net (increase) decrease in cash equivalents from noncurrent investments
Increase in deposits of affiliates and others, net
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
66
681,896
697,866
118,452
232,955
1,954,602
70,761
(2,135,420)
(615,940)
(1,160,187)
(83,839)
(21,506)
22,792
1,368
(236,200)
$
616,174
691,057
116,403
226,905
1,851,351
66,316
(2,001,381)
(554,343)
(1,125,085)
(75,398)
(27,567)
23,047
1,831
(190,690)
157,624
4,922,366
(4,843,118)
(685)
24,228
260,415
165,296
3,839,630
(4,066,483)
23,707
12,898
(24,952)
21,712
51,284
98,835
(55,787)
(25,778)
(607,333)
2,176
(514,891)
3,432
40,750
362,200
(215,747)
(22,879)
(489,624)
372
(685)
(322,181)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State educational appropriations
Private gifts and other receipts
Student direct lending receipts
Student direct lending disbursements
Amounts received for annuity and life income funds
Amounts paid to annuitants and life beneficiaries and related expenses
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
362,036
176,406
204,390
(202,117)
12,990
(18,650)
535,055
374,486
175,647
195,656
(193,955)
2,551
(7,759)
546,626
Net increase in cash and cash equivalents
Cash and Cash Equivalents, Beginning of Year
CASH AND CASH EQUIVALENTS, END OF YEAR
44,379
369,226
413,605
8,803
360,423
369,226
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
State capital appropriations
Private gifts and other receipts
Proceeds from issuance of capital debt
Principal payments on capital debt
Interest payments on capital debt
Purchases of capital assets
Proceeds from sales of capital assets
Payments for bond issuance costs
NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES
$
The accompanying notes are an integral part of the consolidated financial statements.
$
Consolidated Statement of Cash Flows –– Continued
Year Ended June 30,
2006
2005
(in thousands)
Reconciliation of operating loss to net cash used in
operating activities:
Operating loss
Adjustments to reconcile operating loss to net cash used in
operating activities:
Depreciation expense
Changes in assets and liabilities:
Accounts receivable, net
Prepaid expenses and other assets
Accrued compensation and other
Accounts payable
Deferred revenue
Insurance and benefits obligations
Net cash used in operating activities
$ (473,051)
264,028
(24,377)
(9,498)
13,896
2,555
613
(10,366)
$ (236,200)
$ (465,378)
253,733
8,271
(2,714)
30,585
7,180
(1,564)
(20,803)
$ (190,690)
67
The accompanying notes are an integral part of the consolidated financial statements.