THE AGRICULTURAL FOUNDATION OF
CALIFORNIA STATE UNIVERSITY, FRESNO
Table of Contents
2012- 13
Page Number
Corporate Information
Independent Auditor's Report
Statements of Financial Position - Assets
Statements of Financial Position - Liabi lities and Net Assets
Statements of Activities
Statements of Cash Flows
Notes to the Financial Statements
Additional Information for California State University, Fresno
Schedu le of Net Position
Schedule of Revenues, Expenses and Changes in Net Position
Other Information
2-3
4
5
6-7
8
9- 16
17
18
19
20 - 2 1
THE AGRICULTURAL FOUNDATION OF CALIFORNIA STATE
UNIVERSITY, FRESNO
CORPORATE INFORMATION
For the Fiscal Year Ended June 30, 2013
BOARD OF DIRECTORS
Charles Boyer
H. Clay Daulton
Daniel Enotabere
Larry D. Layne
Richard Matoian
Pat V. Ricchiuti
Jolm D. Welty
Fresno, Califomia
Madera, California
Fresno, Califomia
Sanger, California
Fresno, California
Clovis, California
Fresno, Califomia
CORPORATE OFFICERS
Pat V. Ricchiuti
Larry D. Layne
Daniel Enotabere
Jolu1 D. Welty
Deborah S. Adishian-Astone
Chair
Vice Chair
Treasurer
Secretary
Executive Director
AUDIT COMMITTEE
Daniel Errotabere
Lynn D. Hemink
Lany D. Layne
Richard Matoian
Fresno, California
Fresno, California
Sanger, Califomia
Fresno, California
EXECUTIVE STAFF
Ms. Deborah S. Adishian-Astone
Ms. Kate Tuckness
Mr. John Melikian
Executive Director
Auxiliary Controll er
Staff Counsel
CORPORATE DATA
Executive Offices
2771 East Shaw Avenue
Fresno, California 937 10-8205
Telephone (559) 278-0800
Auditors
Price Paige and Company
677 Scott Avenue
Clovis, California 93612
Telephone (559) 299-9540
PRICE PAIGE
& COMPANY
Accountancy Corporation
The Place to Be
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of
The Agricultural Foundation of
California State University, Fresno
Fresno, California
We have audited the accompanying financia l statements of The Agricultural Foundation of California
State University, Fresno (Ag Foundation). a nonprofit organization, which comprise the statement of
financial position as of June 30, 2013, and the related statements of activities and cash flows for the year
then ended, and the related notes to the financial statements .
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the Un ited States of America; this includes
the design , implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an op1mon on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the Ag
Foundation 's preparation and fair presentation of the financial statements in order to design aud it
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Ag Foundation's internal control. Accordingly , we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
6 77 Scott Avenue
Clovis,CA 93612
tel 559.299.9540
fax 559.299.2344
2
www.ppcpas.com
Opinion
In our opinion , the financial statements referred to above present fairly, in all material respects, the
financial position of The Agricultural Foundation of California State University, Fresno as of June 30 ,
2013, and the changes in its net assets and its cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Additional Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The information reflected on pages 18-21 is presented , as required by the Chancellor of the California
State University, for purposes of additional analysis and is not a required part of the financial statements.
Such information was derived from and relates directly to the underlying accounting and other records
used to prepare the financial statements and has been subjected to the auditing procedures applied in the
audit of the financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the Additional
Information is fairly stated in all material respects in relation to the financial statements as a whole
Clovis, California
September 6, 2013
3
THE AGRICULTURAL FOUNDATION OF CALIFORNIA STATE UNIVERSITY, FRESNO
STATEMENTS OF FINANCIAL POSITION
JUNE 30,2012 AND 2013
20 12
20 13
Assets
Current Assets:
Cash and Cash Equivalents (Note 2)
Accounts Receivable
Allowance for Doubtful Accounts
Prepaid Expenses
Inventories at Cost and Unit Livestock Method (Note 3)
$
Total Current Assets
Noncurrent Assets:
Restricted:
Temporarily Restricted Cash (Note 2)
Total Restricted Assets
Other Assets:
Long-Term Receivables (Note 4)
Investments (Note 'i)
Total Other Assets
Fixed Assets: (Note I)
Breeding Herd
Equipment
Capitalized Development Costs
Construction In Progress
Total Fixed Assets
Less: Accumulated Depreciation
Total Fixed Assets,Net
Total Noncurrent Assets
$
Total Assets
I ,496,864
209,289
(3,500)
2,363
705,391
1,656 ,418
309,447
(3,500)
1,727
752,158
2,410,407
2,716,250
12,734
37,438
12,734
37,438
32,364
672,700
31,144
738,942
705,064
770,085
188,813
2,092,290
63 1,464
2,400
173,403
2,293 ,5 16
631,464
25,001
2,9 14,967
(1,791,925)
3,123,384
(1,978,461)
I, 123,042
1, 144,923
1,840,840
I ,952,446
4,251,247
The accompanying notes are an integral part of the financial statements
4
$
$
4,668,696
THE AGRICULTURAL FOUNDATION OF CALIFORN IA STATE UN IVERSITY, FRESNO
STATEMENTS OF FINANC IAL POSITION
JUNE 30,2012 AND 2013
Liabilities and Net Assets
20 12
Liabilities:
C urrent Liabilities:
Accounts Payable
Agency Funds
$
Total Current Liabilities
Net Assets:
Unrestricted:
Undesignated
Designated:
Agricultural Foundation Endowment Fund (Note 6)
Incentive Funds
Contingency Reserve
Total Designated Net Assets
Total Unrestricted Net Assets
Restricted:
Temporarily Restricted Net Assets (Note 10)
Total Restricted Net Assets
Total Net Assets
$
Total Liabilities and Net Assets
530,358
5,259
$
252,269
5,259
535,617
257,528
2,847,081
3,455,756
672,700
33,115
150,000
738,942
29,032
150,000
855,815
917,974
3,702,896
4,373,730
12,734
37,438
12,734
37,438
3,715,630
4,411 , 168
4,251,247
The accompanying notes are an integra l part of the financial statements
5
20 13
$
4,668,696
THE AGRICULTURAL FOUNDATION OF CALI FORNIA STATE UNIVERSITY, FRESNO
STATEMENTS OF ACTIVITIES
FOR THE YEARS EN DED JUNE 30, 20I2 AND 2013
20 12
Changes in Unrestricted Net Assets:
Revenues:
Gross Sales
Agricultural Operations Support/(Deficit)
Donated Income
Interest Income
Unrealized Gain(Loss) on Investments
$
Total Revenues
Expenses and Losses:
Cost of Sales
Salaries/Wages
Employee Benefits
Advertising
Audit Fees
Awards/Prem iums
Bad Debt
Capitalized Development Costs-Depreciation
Custom Harvesting
Depreciation
Donations
Equipment Rental/Repair
Incentive Fee Transfers
Infrastructure Improvements
Insurance
Legal Fees
Licenses/Dues/Fees
Livestock Expense
Management Services Fee
Miscellaneous
Office Supplies/Duplicating
Postage/Freight
Supplies
Travel
Util ities
Unrelated Business Income Tax
Total Expenses and Losses
lncrease(Decrease) in Unrestricted Net Assets
4,793,366
(53,736)
67,976
24,521
(37,83 1)
$
5,347,892
123,344
2 13,585
27,703
44,806
4,794,296
5,757,330
1,399,498
1,227,247
76,54 1
13,694
17,070
30,405
1,405
52,R62
101,204
181 ,1 76
0
466,224
1,572
17,900
52,170
0
51,555
73,274
124,100
62,793
3,025
10,087
61 1,942
2,428
72,4 12
1,166
1,506,322
I ,408,787
74,001
10,879
18, 145
29,899
3 19
25,870
9 1,622
169,419
37,779
446,302
4,083
13,543
54,070
0
58,748
96,871
128,500
65,086
3,340
5, 154
740,375
4, 153
87,922
5,307
4,65 1,750
5,086,496
142,546
670,834
The accompanying notes are an integra l part of the financia l statements
6
20 13
THE AGRJCULTURAL FOUNDATION OF CALIFORNIA STATE UNIVERSITY, FRESNO
STATEMENTS OF CASH FLOWS
FOR THE YEARS EN DED JUNE 30, 2012 AND 2013
2012
Cash Flows From Operating Activities
Increase (Decrease) in Net Assets
Adjustments to Reconci le Increase in Net Assets to
Net Cash Provided (Used) By Operating Activities:
Depreciation
Unrealized (Gain) Loss on Investments
Changes In:
Accounts Receivable
Prepaid Expenses
Inventories
Accounts Payable
Agency Funds
$
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
(Increase) Decrease in Long-Term Receivables
Net Change in Breeding Herd
Acquisition of Equipment and Capitalized Development Costs
Net Cash Used by Investing Activities
Net Increase(Decrease) in Cash
Cash and Cash Equivalents at Beginning of Year
20 13
105,482
$
695,538
234,038
37,83 1
195,289
(66,242)
44,747
(439)
I 1,559
250,532
(622)
(I 00, 158)
636
(46,766)
(278,090)
0
683, 128
400,207
1,673
(23,440)
(8,33 1)
1,220
6,658
(223,827)
(30,098)
(215,949)
653,030
856,568
184,258
I ,509,598
Cas h and Cash Equiva le nts at End of Year
$
1,509,598
$
1,693,856
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Year for Taxes
$
1, 166
$
5,307
The accompanying notes are an integral part of the financial statements
8
THE AGRICULTURAL FOUNDATION OF CALIFORNIA STATE UNIVERSITY, FRESNO
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2012 and 2013
Note 1 - Summary of Significant Accounting Policies
The Agricultural Foundation of Cali fornia State University, Fresno (The Agricultural Foundation) was
incorporated on December 3, 1954 as a non-profit corporation . The Agricultural Foundation was formed
and is operated exclusively to receive, hold, invest, and administer property and to make expenditures to
or for the benefit of California State University, Fresno (the " University"). The organization is supported
primarily by sales of products from the various operating units. For the year ended June 30, 20 13,
approximately 16% and 12% of the organization's support was from sales by the Mature Orchard and
Farm Market, respectively.
The Agricultural Foundation maintains its accounting records and prepares its financial statements on the
accrual basis of accounting. Therefore, revenues are recogn ized when earned and expenses are
recognized when goods or services are received.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the fmancial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposit accounts and money market funds with financial
institutions. The Agricultural Foundation considers all highly liquid investments with maturities of three
months or less, when purchased, to be cash equivalents. At June 30, 2012, the Federal Depository
Insurance Corporation (FDIC) insured cash balances held in interest-bearing accounts up to $250,000 and
unlimited amounts for noninterest bearing accounts. Effective January I, 20.13, the FDIC insures cash
balances held in interest and non interest-bearing accounts combined up to $250,000. At June 30, 2012
and 2013, the Agricultural Foundation's uninsured cash balances at Citibank totaled $810,752 and
$1,574,997 respectively.
Donor Imposed Restrictions
All contributions are considered to be available for unrestricted use unless specifically restricted by the
donor. Amounts received that are designated for future periods or restricted by the donor for specific
purposes are reported as temporarily restricted or permanently restricted support that increases those net
asset classes. When a restriction expires, temporari ly restricted net assets are reclassified to unrestricted
net assets.
Net Assets
Undesignated Net Assets: This category is maintained to account for those transactions related to all
activities not covered in a specific fund and which relate in general to the full scope of operations of the
auxiliary organization, including accounting for the revenue and expenses of various agricultural units.
These funds are appropriated in accordance with the policies established by the Trustees of The
Cali forn ia State University (Trustees), the campus, and the auxiliary organization.
Designated Net Assets: When appropriations are made by the Board of Directors (the "Board") for a
specific purpose, they are classified as designated net assets.
Temporarily Restricted Net Assets: Th is category represents net assets whose use has been limited by
donors to later periods of time or after specified dates or to specified purposes.
9
Note 1 - Summary of Significant Accounting Policies, continued
Pem1anent Net Assets: This category represents net assets required by the donor to be maintained
pennanently and invested in perpetuity. There are currently no permanent net assets.
Accounts Receivable
Accounts receivable are stated at the amount management expects to collect from outstanding balances.
Management provides for probable uncollectible amounts through a provision for bad debt expense and
an adjustment to a val uation allowance based on its assessment of the current status of individual
accounts. Balances that remain outstanding after management has
used reasonable collection efforts are written off through a charge to the valuation allowance and a credit
to accounts receivable. Allowance for doubtful accounts at June 30, 20 12 and 2013 were $3,500 each
year.
Inve ntories
Raised and donated inventory of animals held for sale is carried at maximum raised value established by
the Board. Such values for all animal units were last reviewed in 2006. Inventory values are equivalent
to average cost to raise to maturity. Purchased animals held for sale are valued at cost. Cost of supply
inventories are detennined using the first-in, first-out method (FIFO).
Donated Services
The Agricultural Foundation receives various donated services. The estimated fair values of donations in
excess of $1,000 are recorded as support and expense in the period received.
Expense Allocation
The costs of providing various programs and other activities have been summarized on a functional basis
in Note II - Expenses by Natural Classification. Accordingly, certain costs have been allocated among
programs and supporting services.
Fixed Assets
Fixed assets represent mi lking livestock, breeding herds, and equipment. Raised and donated milking
livestock and breeding herds are carried at maximum raised value established by the Board. Purchased
milking livestock and breeding herds are carried at cost less accumulated depreciation. Depreciation of
livestock and herds is computed using straight line rates established by the Board, and the costs are
depreciated down to the maximum raised value. The Agricultural Foundation capitalizes all expenditures
for equipment in excess of $5,000. Equipment is carried at cost less accumulated depreciation.
Depreciation of equipment is computed using straight line rates based upon estimated useful lives.
Equipment includes the value of Construction in Progress which is not depreciated until the project is
completed.
Cap italized development costs represent costs incurred for producing vineyards and orchards. The costs
are depreciated over I0 years as the vineyards and orchards commence production.
Depreciation expense amounted to $234,038 and $195,289 in 20 12 and 2013, respectively.
Gross Sales
Sales of crops are recorded net of certain custom harvesting costs.
10
Note 1 -Summary of Significant Accoun tin g Policies, continued
Investments
Investments in marketable securities are recorded at cost when purchased and at market value, thereafter.
Market value is based on quoted market prices.
Tax Status
The Agricultural Foundation is organized and operated exclusively for educational purposes and is thus
allowed tax exempt status under provisions of section 50 I(c)(3) of the Internal Revenue Code and section
2170 I(d) of the California Revenue and Taxation Code. However, income for certain activities not
directly related to the organization's tax-exempt purpose is subject to taxation as unrelated business
income.
Advertising Costs
Advertising costs are expensed as incurred and totaled $ 13,694 and $10,879 m 2012 and 20 13,
respectively.
Note 2- Cash a nd Cash Equivalents
Cash and Cash Equivalents at June 30
consisted of the following:
Deposits:
Cash in Banks
$1 ,401,987
$ 1,585,30 I
104,311
I 04,655
3,300
3,900
U .509 598
$1.693 856
Pooled Funds:
Cash in State of California Local
Agency Investment Fund (LAIF)
Cash on Hand
Total
The Agricultural Foundation maintains some of its cash in The State of California Local Agency
Investment Fund. The State pools these funds with those of other organizations and invests the cash.
These pooled funds are carried at cost which approximates market value. Interest earned is remitted
quarterly to the Agricultural Foundation. Any investment losses are proportionately shared by all funds
in the pool.
Of the total cash amount of $ 1,509,598 and $ 1,693,856 in 2012 and 2013, temporarily restricted cash was
$ 12,734 and $37,438 in 20 12 and 2013, respectively. Temporarily restricted cash represents amounts
held to comply with donor- imposed restrictions in the Poultry unit and is not for avai lable for general use.
There is no requirement that cash be held in separate accounts.
Note 3 - Inventory
Inventory at June 30, 2012 and 2013 consists of the following:
Winery
Dairy
Beef
Others
$267,396
197,959
126,622
113 414
rnli.121
Total
11
$326,383
193,550
107,870
124,355
$752. 158
Note 4- Long-Term Receivab les
The Agricultural Foundation is a member of a milk cooperative known as the California Dairies Inc.
Members of the cooperative must maintain a permanent capital fund to provide the necessary capital to
finance the California Dairies' operation and growth. This equity account is refundable in five annual
payments upon the Agricultural Foundation's withdrawal fi·om the cooperative.
Long-Tenn Receivables are composed of the following:
Cali forn ia Dairies Inc.
l l i 144
$32.364
Note 5 - Investments
Investment securities, stated at market value, are summarized as follows at June 30:
20 12
Cost Basis
Market Value
Fresno State Foundation
Endowment Pool
$737.645
$.612..1illl
2013
Cost Basis
Market Value
Fresno State Foundation
Endowment Pool
$111,645
Unrealized
Appreciation/(Depreciation)
($64.945)
Unrealized
Appreciation/( Depreciation)
($) 297)
$738.942
Note 6- Endowment
The Board designated the Agricultural Foundation Endowment Fund to support the mission of the
Agricultural Foundation. Since the fund resulted from an internal designation and is not donor-restricted,
it is classified and reported as unrestricted net assets.
Endowment assets are invested with the California State University, Fresno Foundation (the
"Foundation") in their endowment Pool A, a well diversified fund that is intended to result in a consistent
inflation-protected rate of return. Each year, the Foundation either approves an appropriation for
distribution from its endowments or a reinvestment in the pool. For fiscal year 20 13, the Board
authorized a reinvestment in Pool A.
The distribution or reinvestment is measured as a percentage of its endowment fund's average fair value
over the prior 12 quarters through the calendar year-end preceding the fiscal year in which the
distribution is planned. In establishing this policy, the Agricultural Foundation considered the long-tenn
expected return on its endowment. Accordingly, over the long tenn, the Agricultural Foundation expects
the current spending policy to allow its general endowment fund to grow consistent with its return
objectives and risk parameters. The Agricultural Foundation expects its endowment assets, over time, to
exceed the rate of inflation by approximately 4%. Actual returns in any given year may vary from this
amount.
Composition of and changes in endowment net assets for the year ending June 30, 20 12 and 20 13, were
as follows:
Board-designated endowment net assets, Ju ly I
Net appreciation (depreciation)
Amounts reinvested
Amounts appropriated for expenditure
Board-designated endowment net assets, June 30
$7 10,531
( 17,923)
0
(19,908)
$672 7QD
12
$672,700
44,806
21 ,436
0
$]3 8.242
Note 7- Fair Va lue Measu rements
Effective May I, 2008, The Agricultural Foundation adopted Statement No. 157, Fair Value
Measurements, Statement of Financial Accounting Standards No. I57 (FAS 157), subsequently included
in the Codification as ASC 820. ASC 820 applies to all financial statements that are being measured and
reported on a fair value basis.
ASC 820 defmes fair value as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. ASC 820
establishes a fa ir value hierarchy that prioritizes the inputs to valuation techniques used to measure fair
value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level I measurements) and the lowest priority to measurements involving significant
observable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1 - Inputs are quoted market prices (unadjusted) in active markets for identical assets or
liabilities. Valuations for assets and liabilities traded in active exchange markets. Valuations
are obtained from readily available pricing sources for market transactions involving identical
assets or liabilities.
Level 2 - Inputs other than quoted prices within Level I that are observable, either directly or
indirectly. Valuations for assets and liabilities traded in less active dealer or broker markets.
Valuations are obtained from third party pricing services for identical or similar assets or
liabilities.
Level 3 - Inputs are unobservable. Valuations for assets and liabi lities that are derived from
other valuation methodologies, including option pricing models, discounts cash flow models and
similar techniques, and not based on market exchange, dealer, or broker traded transactions.
Level 3 valuations incorporate certain assumptions and projections in determining the fair value
assigned to such assets or liabilities.
The table below presents the balance of assets measured at fair value on a recurring basis at June 30:
Fair
Value
20 12
Investment, Fresno State
Foundation Endowment Pool
Cash and Cash Equivalents
Totals
Level I
672,700
I ,509,598
$.__2 182,228
$
$
$
$
$
Level 3
0
I ,509,598
I 5Q2 528
$ 672,700
0
$ 612 :ZQQ
0
$ 738,942
0
$ 1ll 242
20 13
Investment, Fresno State
Foundation Endowment Pool
Cash and Cash Equivalents
Totals
738,942
1,693,856
$___2 432,728
1,693,856
~623 .856
Note 8- Related Parties
The Agricultural Foundation receives management services from the California State University, Fresno
Association, Inc. (the "Association"). The Agricultural Foundation had the following transactions with
the following entities during the years ended June 30, 20 12 and 2013 :
Administrative fees paid to the Association for management services were $1 24, I 00 and $ 128,500 for the
years ended Ju ne 30, 201 2 and 201 3, respectively, based on a flat fee arrangement. The amounts due the
Agricu ltural Foundation from the Association at June 30, 2012 and 2013, were $982 and $315,
respectively. The amounts due the Association from the Agricultural Foundation at June 30, 2012 and
2 013 , were $0 and $750, respectively.
13
Note 8 - Rela ted Parties, continu ed
The amounts due to the California State University, Fresno Foundation by the Agricultural Foundation
for expenses at June 30, 2012 and 20 13, were $0 and $26 1, respectively. The amounts due to the
Agricultural Foundation by the California State University, Fresno Foundation at June 30, 2012 and
2013, were $19,908 and $0, respectively.
The Agricu ltural Foundation operates the Un iversity Farm, which serves as an instructional laboratory.
As such, the Univers ity is req uired to pay fo r certain operational expenses during the fi scal year. The
amounts paid by the University were $85,287 and $239,209, for the years ended June 30,2012 and 20 13,
respectively. These payments were used to reduce farm operation expenses. The amounts due from the
Agricultural Foundation to the University at June 30, 20 12 and 20 13, were $272,861 and $1 15,
respectively. The amounts due from the University to the Agricultural Foundation at June 30, 20 12 and
2013, were $0 and $6,358, respectively.
The amounts due from Fresno State Programs For Chi ldren at June 30, 20 12 and 2013 , were $397 and
$0, respectively.
Note 9- Leases
The Agricultura l Foundation has entered into several leases and subleases as follows:
Use of San Joaquin Experimental Range for cattle grazing, with the USDA, expiring March 17,
2020.
Ground and Facility Lease between the Trustees of the CSU, expiri ng June 30, 20 17.
Land for grazing purposes ( Millerton Lake), with the United States Department of the Interior
Bureau of Reclamation, expiring June 30, 2015.
Land for grazing purposes, sublease with Runn ing T Ranch, expired June 15, 20 I I with
automatic renewal unless term inated by either party through June 15, 2013 .
Note 10- Tempora ri ly Restricted Net Assets
Temporarily restricted net assets at June 30, 2012 and 20 13, are availab le for the following:
20 12
Hackney Horse Unit
Organic Farming
Poultry Un it
$4,797
7,937
__
0
Total
$J.l.ll4
14
2013
$
0
0
37.438
$.ll,438
Note 11-
Ex~enses
b:r: Natural Classification
For The Years Ended June 30:
!;;xQenses
Program
Cost of Sales
Salaries/Wages
Employee Benefits
Advertising
Audit Fees
Awards/Prem iurns
Bad Debts
Capitalized Development CostsDepreciation
Custom Harvesting
Depreciation
Donations
Equipment RentalfRepair ·
Incentive Fee Transfers
Infrastructure Improvements
Insurance
Legal Fees
LicensesfOues/Fees
Livestock Expense
Management Services Fee
Miscellaneous
Office Suppl ies/Dupl icating
Postage/Freight
Student Profit on Projects
Supplies
Travel
Unrealized Loss on Investments
Utilities
Unrelated Business Income Ta.x
$1,399,498
1,227,247
76,541
13,694
0
30,405
1,405
Totals
52,862
101 ,204
181,176
0
466,224
1,572
17,900
19,996
0
48,648
73 ,274
0
59,983
1,0 19
10,087
0
61 1,942
2,428
0
72,412
1.1 66
$4 ':!ZQ 683
2012
General &
Admin istrative
$17,070
32,174
0
2,907
124, 100
2,8 10
2,006
$18 1 Q6:Z
Total
Program
$1,399,498
1,227,247
76,541
13,694
17,070
30,405
1,405
$1 ,506,322
I ,408,787
74 ,00 1
10,879
0
29,899
319
52,862
10 1,204
18 1,176
0
466,224
1,572
17,900
52, 170
0
51 ,555
73,274
124, 100
62,793
3,025
10,087
0
611 ,942
2,428
0
72,412
1.166
25,870
91 ,622
169,419
37,779
446,302
4,083
13,543
23 ,086
0
55,092
96,87 1
0
61,444
1,113
5,154
0
740,375
4, 153
0
87,922
5.307
$':! 65 1 :ZSQ
$':1..8.2.2,3':12
2013
General &
AdminiW!Itive
$18,145
30,984
3,656
128,500
3,642
2,227
$182 15':1
Total
$1,506,322
I ,408,787
74,001
10,879
18,145
29,899
319
25,870
91 ,622
169,419
37,779
446,302
4,083
13,543
54,070
0
58,748
96,87 1
128,500
65,086
3,340
5,154
0
740,375
4,153
0
87,922
5 307
$5 Q86.lli
Program expenses are incurred by various instructional farm laboratories, whose purpose is to provide
students with hands-on experience in world-class agriculture. These enterprises provide students with
opportunities in production, processing and marketing in crops and livestock. The Agricultural
Foundation provides support for the financial management of the enterprise units and student projects
operated wi thin the context of the Fann Laboratory. Responsibilities include ensuring prudent financial
management of the enterprises, and providing other related assistance to the Jordan College of
Agricultural Sciences and Technology. The Agricultural Foundation comprises over 27 enterprises,
which constitute the University Agricultural Laboratory.
Note 12 - Subsequent Events
Subsequent events have been evaluated through September 6, 20 13 noting no matters requiring disclosure
in the financial statements for the year ended June 30,20 13.
Note 13- Un ce rtain Tax Positions
Generally Accepted Accounting Principles (GAAP) requires organizations to determine and assess all
material tax positions taken in any income or information returns, includ ing all significant uncertain
positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities.
GA AP addresses the recognition and measurement of income tax positions using a "more-likely-than-not"
(MLTN) threshold. The MLTN threshold means that:
•
A benefit related to an uncertain tax position may not be recognized in the financial statements
unless it is MLTN that the position will be sustained based on its technical merits; and
15
Note 13 - Uncertain Tax Positions, continued
•
There must be more than a 50 percent likelihood that the pOSitiOn would be sustained if
challenged and considered by the highest court in the relevant jurisdiction.
Management evaluated all material tax positions as required by GAAP and determined that this
requirement had no impact on the Agricultural Foundation's financial statements.
The Agricultural Foundation files income tax returns in the U.S. federal jurisdiction and the State of
California. The Agricultural Foundation 's federal income tax returns for the tax year 2010 and beyond
remain subject to examination by the Internal Revenue Service. The Agricultural Foundation's California
income tax returns for 2009 and beyond remain subject to examination by the Franchise Tax Board.
16
ADDITIONAL INFORMATION FOR
CALIFORNIA STATE UNIVERSITY, FRESNO
17
THE AGRICULTURAL FOUNDATION OF CALIFORN I A STATE UNIVERSITY, FRESNO
SC HEDULE OF NET POSITI ON
JUNE 30,2013
(for inclusion in the Califo rnia State Unive rsi ty)
Assets:
Current Assets:
Cash and Cash Equivalents
Short-Tenn In vestments
Accounts Receivable, Net
Prepaid Expenses and Other Assets
Total Current Assets
$
I ,55 1,763
104,655
305,947
753,885
2,7 16,250
Noncurrent Assets:
Restricted Cash and Cash Equivalents
Accounts Receivable, Net
Endowment Investments
Capital Assets,net
Total Noncurrent Assets
37,438
3 1, 144
738,942
1,144,922
1,952,446
Total Assets
4,668,696
Liabilities:
Current Liabilities:
Accounts Payable
Accrued Salaries and Benefits Payable
Accrued Compensated Absences, Current Portion
Other Liabilities
Total Current Liabilities
240,907
6, 161
1,000
5,259
253,327
Noncurrent Liabilities:
Accrued Compensated Absences, Net of Current Pmtion
Total Noncurrent Liabilities
4,201
4,201
Total Liabilities
257,528
Net Position:
Net Investment in Capital Assets
Restricted for:
Expendable:
Other
Unrestricted
1, 144,923
37,438
3,228,807
$
Total Net Position
See accompanying independent auditors' re port.
18
4,41 1, 168
THE AG R IC ULTURAL FOUNDATION OF C AL IFORN IA STATE UNIVERS ITY, FRESNO
SCH EDULE O F R EVENUES, EXP ENSES AND C HANGES IN NET POSITION
YEAR ENDED J UNE 30, 2013
(for inclusion in th e Califo rn ia State Unive rsity)
Revenues:
Operating Revenues:
Sales and Services of Auxil iary Enterprises
Other Operating Revenues
$
5,437,982
206,466
Total Operating Revenues
5,644,448
Operating Expenses:
Auxiliary Enterprise Expenses
Depreciation and Amortization
5,064 ,419
195,289
Total Operating Expenses
5,259,708
Expenses:
384,740
Operating Income
Nonoperating Revenues (Expenses):
Gifts, noncapital
Investment Income, net
Endowment Gain(Loss)
Other Nonoperating Revenues
90,566
6,267
2 1,436
44,806
Net Nonoperating Revenues (Expenses)
163,075
Income before Other Add itions
547,815
147,723
Grants and Gifts, Capital
Increase in Net Position
695,538
Net Position:
Net Position at Beginning of Year, as Previously Rep01ted
3,715,630
$
Net Position at End of Year
See accompanying independent aud itors' report.
19
4,41 I,I68
T il E AGRICULTURAL FOUNDATION OF CALI FORNI A STAT E UNIVERSITY, FRESNO
OTHER INFORMAT ION
J UNE 30, 201 3
(for inclusion in the Califo rn ia State Un iversity)
I.
Restricted Cash and Cash Equivalents at June 30.2013:
Not Applicable
2.1
Composition oflnvestments at June 30,2013:
State of California Local Agency Investment Fund (LALF)
Debt and Equity Securities
Total Investments
Unrestricted
104,655
0
104,655
2.2
Investments held by the University under contractual agreements at June 30,2013:
Not Applicable
2.3
Restricted Current Investments at June 30.20 I 3 related to:
Not Applicable
2.4
Restricted Noncurrent Investments at June 30,20 13 related to:
Not Applicable
3.1
Composition of Capital Assets at June 30,2013:
Balance
June 30,2012
Non-Depreciable Capital Assets:
Capitalized Development Costs
Construction Work in Progress (CWI P)
Total Non-Depreciable Capital Assets
N
0
Depreciable Capital Assets:
Breeding Herd
Capital ized Development Costs
Personal Property-Equipment
Total Depreciable Capital Assets
Total Capital Assets
Less Accumulated Depreciation:
Breeding Herd
Capitalized Development Costs
Personal Property-Equipment
Total Accumulated Depreciation
Total Capital Assets, Net
Restricted
0
0
0
Prior Period
Adjustments
Current
104,655
0
104,655
Unrestricted
Balance 20 12
Restated
Reclassifications
Restricted
0
738,942
738,942
0
0
0
Additions
Noncurrent
0
738,942
738.942
Reductions
Total
104,655
738,942
843.597
Transfers
Comeleted CWIP
0
2,400
2,400
0
0
0
0
0
0
0
2,400
2,400
0
25,001
25,001
0
(2,400)
(2,400)
188,813
631,464
2,092,290
2,912,567
2,914,967
0
0
0
0
0
0
0
0
0
0
188,813
63 1,464
2,092,290
2,9 12,567
2,914,967
0
0
20 1,226
20 1,226
226,227
(15,410)
0
0
( 15,41 0)
(1 7,8 10)
0
0
173.403
631,464
2.293,516
3,098,383
3,123,384
( 18,492)
(549,608)
( I ,223,825)
( 1,791,925)
I, 123,042
0
0
0
0
0
0
0
0
0
0
(18,492)
(549,608)
( 1,223,825)
(1,79 1,925)
1,123,042
0
(25,870)
( I 69,419)
( 195,289)
30,938
8,753
0
0
8,753
(9,057)
0
0
0
0
0
(9,740)
(575,477)
( 1,393,244)
( 1,978,46 I)
1,144,923
Note: Additions and Reductions includes $8,884 adjustment for Breeding Herd changes in valuation recorded in Cost of Sales.
3.2
Detail of Depreciation and Amortization Expense for the Year Ended June 30, 2013:
Depreciation and Amortization Expense Related
to Capital Assets
195,289
Amortization Expense Related to Other Assets
Q
195,289
Total Depreciation and Amortization
3.3
Detail of intangible Assets for the Year Ended Ju ne 30,2013:
Not Applicable
See accompanying independent auditors' report
0
Balance
June 30, 2013
0
0
0
0
25,001
25.001
TilE AG RICU LTURA L FOUN DATION OF C ALIFORN IA STATE UN IVE RSITY, F R ESNO
OTII ER I N FORMATION
JUNE 3 0,2013
(fo r inclus io n in the Califo rnia S tate University)
4.
Long-Term Liabilities Activity Schedule:
Accrued Compensated Absences
5.
Balance
June 30,2012
4,903
Prior Period
Adjustments
Reclassifications
0
0
Balance 20 12
Restated
4,903
Additions
1.000
Reductions
(702)
Future Minimum Lease Payments:
Not Applicable
6.
Long-Term Debt Obligation Schedule:
No t Applicable
7.
Calculation of Ne t Position :
7. I
Calculation of Net Position - Net Investment in Ca1>ital Assets:
Auxiliary Organizations
GASB
FASB
0
1, 144,923
Capital assets, net of accumulated depreciation
7.2
Calculation of Net Position - Rest ricted for nonexpendable endowments:
Not Applicable
8.
Transactions wit h Related Entities:
Payments to University for salaries of University personnel working on contracts, grants, and other programs
Payments to University for other than salaries of University personnel
Payments received from University for services, space, and programs
Gifts-in-kind to the Univers ity from Auxilary Organizations
Gifts (Cash or Assets) to the Unive rs ity from recognized Auxiliary Organizations
Accounts (pa yable to) University
Accounts rece ivable from Univers ity
9.
Other Postemployment Benefits Obligation (OPEB):
Not Applicable
10.
Pollution remediation liabilities under GASB Sta tement No 49:
Not Applicab le
I 1.
The Nature and amount of the prio r period adjustment(s) recorded to beginning net position:
A mounts
421,330
214.175
0
0
2 1,280
( 11 5)
6,358
Not Applicable
See accompanying independe nt auditors' report
Total
Auxiliaries
1, 144,923
Balance
June 30,20 13
5,20 1
Current
Portion
1,000
Long-Terrn
Portion
4,201