Financial Statements and
Supplemental Information
As of June 30, 2002 and 2001
EASTERN MICHIGAN UNIVERSITY
June 30, 2002
Board of Regents
Executive Officers
Financial Administration
Mr. Philip A. Incarnati
Chair-Board of Regents
Fenton, MI
Dr. Samuel A. Kirkpatrick
President
Mr. Patrick J. Doyle
Vice President for Business
and Finance and Treasurer to
the Board
Mr. Joseph E. Antonini
Troy, MI
Mr. Patrick J. Doyle
Vice President for
Business and Finance and
Treasurer to the Board
Mr. John W. Beaghan, CMA
Assistant Vice President and
Controller
Ms. Jan A. Brandon
Ann Arbor, MI
Mr. Courtney 0. McAnuff
Vice President for Enrollment
Services
Mr. Daniel B. Cooper, CMA
Director of Financial Services
Mr. Robert A. DeMattia
Plymouth, MI
Ms. Juanita M. Reid
Vice President for University
Relations
Mr. Timothy K. Griffith
Manager of Accounting
and Treasury
Mr. Steven G. Gordon
Bloomfield Hills, MI
Dr. Paul T. Schollaert
Provost and Vice President for
Academic Affairs
Mr. Alvin S. Levett
Director of University
Budget
Dr. Rosalind E. Griffin
Farmington Hills, MI
Dr. John B. Shorrock
Vice President for Advancement
and Executive Director of EMU
Foundation
Mr. Thomas E. Madden
Director of Student Business
Services
Mr. Michael G. Morris
Northville, MI
Mr. James F. Vick
Vice President for Student
Affairs
Ms. Karen Quinlan Valvo
Ypsilanti, MI
EASTERN M I C H I G A N UNIVERSITY
September 24, 2002
To the EMU Board of Regents:
I am pleased to present to you the financial report for the fiscal year ended June 30, 2002.
Through sound fiscal management of public funds, innovative programs and delivery
systems, and the commitment of faculty and staff, the University has achieved success in
each of its strategic directions. Key to this success was the adoption of a new mission
statement by the Board of Regents and the identification and funding of 54 strategic
initiatives by the University. The strategic planning process has been embraced as an
integral function of the University and provides the framework for continuous
improvement.
Enrollment at the University continues to grow. Fall 2001 saw the University enroll the
largest class of new students in the history of the institution. Enhancements in academic
advising, instructional support, commuter services and the opening of a transfer student
center will help to ensure greater student persistence.
The University saw success in several additional areas: our $28 million, multi-year
technology plan was launched and the first phase of the Banner/SCT enterprise-wide
software system was implemented, Institutional Research was reorganized to better
support strategic planning and continuous improvement, a comprehensive academic
program review was initiated, and the University received formal approval for the new
Ph.D. in Technology from the North Central Association.
These successes highlight our continued commitment to teaching, research and service
and demonstrate that the resources entrusted to the University are being invested in the
pursuit of excellence in all that we do.
I give you my personal oath that these financial statements reflect the true and accurate
picture of Eastern Michigan University.
Thank you for your continued support.
Sincerely,
Samuel A. Kirkpatrick
President
SAK/gg
Office of the President 202 Welch Hall Ypsilanti, Michigan 48197
Phone: 734.487.2211 FAX: 734.487.9100
This page intentionally left blank.
Eastern Michigan University
Contents
June 30, 2002 and 2001
______________________________________________________________________________
Page
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Financial Statements
Statements of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Statements of Revenues, Expenses and Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . 8
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Notes to the Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Supplementary Information
Schedule of Net Assets by Fund, as of June 30, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Schedule of Revenues, Expenses and Changes in Net Assets by Fund,
for the year ended June 30, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Schedule of Net Assets by Fund, as of June 30, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Schedule of Revenues, Expenses and Changes in Net Assets by Fund,
for the year ended June 30, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Notes to the Supplementary Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
EASTERN MICHIGAN UNIVERSITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Eastern Michigan University ("University") annual financial report presents
management’s discussion and analysis of the financial performance of the University during the
fiscal year ended June 30, 2002. This discussion should be read in conjunction with the
accompanying financial statements and footnotes. The financial statements, footnotes and this
discussion are the responsibility of University management.
Using the Annual Financial Report
This annual report consists of financial statements, prepared in accordance with Governmental
Accounting Standards Board (“GASB”) Statement No. 35, Basic Financial Statements and
Management’s Discussion and Analysis for Public Colleges and Universities. The financial
statements prescribed by GASB Statement No.35 (the Statement of Net Assets, Statement of
Revenues, Expenses and Changes in Net Assets, and the Statement of Cash Flows) are prepared
under the accrual basis of accounting, whereby revenues and assets are recognized when the
service is provided and expenses and liabilities are recognized when others provide the service,
regardless of when cash is exchanged.
The Statement of Net Assets includes all assets and liabilities. Changes in net assets (the
difference between assets and liabilities) are an indicator of the improvement or erosion of the
University’s financial health when considered with non-financial facts such as enrollment levels
and the condition of facilities.
The Statement of Revenues, Expenses and Changes in Net Assets presents the revenues earned
and expenses incurred during the year. Activities are reported as either operating or
nonoperating. A public University’s dependency on State aid and gifts could result in operating
deficits because the financial reporting model classifies State appropriations and gifts as
nonoperating revenues. The utilization of capital assets is reflected in the financial statements as
depreciation, which amortizes the cost of an asset over its expected useful life.
The Statement of Cash Flows presents information related to cash inflows and outflows
summarized by operating, noncapital financing, capital financing and related investing activities,
and helps measure the ability to meet financial obligations as they mature.
Financial Activity
The University’s financial position improved during the fiscal year ended June 30, 2002 as
compared to the previous year as evidenced by:
•
The University’s current and total assets increased over the prior year by $11.3 million
and $14.6 million, respectively, most of which is attributed to funds designated for
scholarships and instructional instrumentation, along with bond proceeds which will be
invested in campus improvements.
•
Total liabilities increased by $5 million which is primarily due to increases in long-term
bonds, net of retirements.
1
•
The University’s net assets increased by $9.6 million to $256.4 million, of which $229.6
million is either invested in capital assets or restricted. Of the remaining $26.8 million in
unrestricted assets, all but $4.7 million is designated for specific purposes.
•
Operating revenues increased by $22.2 million compared to the prior year. The increases
were primarily from student tuition and fees, grants and contracts, financial aid and
auxiliary activities.
•
The University’s operating expenses increased by $17.8 million, which is consistent with
budgeted increases in all functional expense categories.
•
State appropriations were the most significant nonoperating revenue, totaling $87.6
million.
•
The operating loss, in addition to other cash requirements (principal and interest
payments), totaled $90 million which was partially funded by State appropriations.
Eastern M ichigan University
Condensed Statements of Net Assets
as of June 30, 2002 and 2001
(in thousands)
ASSETS
Current assets
Noncurrent assets
Total assets
2002
97,971
301,645
$ 399,616
2001
86,657
298,374
$ 385,031
$
$
$
LIABILITIES
Current liabilities
Noncurrent liabilities
Total liabilities
$
36,467
106,751
$ 143,218
35,638
102,575
$ 138,213
NET ASSETS
Invested in capital assets,
net of related debt
Restricted, expendable
Unrestricted, designated
Unrestricted, undesignated
Total net assets
$ 184,101
45,516
22,083
4,698
$ 256,398
$ 186,495
37,319
19,665
3,339
$ 246,818
At June 30, 2002, total University assets were $400 million, compared to $385 million in fiscal
2001. The University's largest asset is its investment in physical plant of $289 million at June 30,
2002 compared to $286 million in fiscal 2001, net of accumulated depreciation.
In fiscal 2002, the University’s current assets of $98 million were sufficient to cover current
liabilities of $36 million (current ratio of 2.73). In fiscal 2001, current assets of $87 million were
sufficient to cover current liabilities of $36 million (current ratio of 2.42). Cash and cash
2
equivalents increased by $13.5 million, primarily due to increased net operating revenue, unspent
bond proceeds, and gains on investments.
University liabilities total $143 million at June 30, 2002 compared to $138 million in fiscal 2001.
Long-term debt of $104.8 million, consisting of bonds payable, is the largest liability. Total longterm debt increased in fiscal 2002 primarily due to the $10.3 million in bonds sold to finance a
new parking deck and defease higher coupon bonds, net of the retirement of $5.2 million in longterm bonds.
Total net assets increased by $9.6 million to $256 million, primarily due to increased tuition and
program fee revenue. Unrestricted net assets total $26.8 million, 82% of which ($22.1 million) is
designated for ongoing academic and research programs, capital projects and other strategic
initiatives.
Eastern M ichigan University
Condensed Statements of Revenues, Expenses and Changes in Net Assets
for the years ended June 30, 2002 and 2001
(in thousands)
Total operating revenues
Total operating expenses
Operating loss
Nonoperating revenues (expenses)
Total increase in net assets
Net assets, beginning of year
Net assets, end of year
2002
$ 163,550
243,414
(79,864)
$
2001
141,371
225,649
(84,278)
89,444
9,580
99,073
14,795
246,818
$ 256,398
232,023
246,818
$
The most significant sources of operating revenues for the University are student tuition
and fees, grants and contracts, and auxiliary services.
Operating expenditures increased by $17.8 million primarily due to investment in instructional
activities, scholarships and fellowships, and utilities.
Nonoperating revenue decreased by $10.1 million, the majority of which is related to capital gifts
which were enhanced in fiscal 2001 by a significant software contribution.
3
E a ster n M ic h ig a n U n iv er sity
C o n d e n se d S ta te m en ts o f C a sh F lo w s
fo r th e y ea r s e n d e d J u n e 3 0 , 2 0 0 2 a n d 2 0 0 1
(in th o u sa n d s)
2001
2002
C ash p ro v id ed /(u sed ) b y :
O p e ra tin g a ctiv itie s
N o n ca p ital fin an c in g ac tiv itie s
C ap ita l an d related fin an c in g ac tiv itie s
In v estin g ac tiv ities
N e t in c rea se in ca sh
C ash an d ca sh e q u iv alen ts, b eg in n in g o f y e ar
C ash an d ca sh e q u iv alen ts, e n d o f y ea r
$
$
(6 3 ,7 4 1 )
9 0 ,1 8 9
(1 6 ,1 4 6 )
3 ,2 2 2
1 3 ,5 2 4
4 7 ,5 4 9
6 1 ,0 7 3
$
$
(7 4 ,7 0 3 )
8 8 ,0 8 4
(8 ,3 6 2 )
4 ,4 9 0
9 ,5 0 9
3 8 ,0 4 0
4 7 ,5 4 9
Major sources of operating cash included student tuition and fees ($109 million), auxiliary
activities ($34 million), and grants and contracts ($29 million). The largest uses of operating cash
were payments for suppliers and employees ($199 million) and financial aid ($29 million). The
most significant source of noncapital financing activities cash was State appropriations ($87
million).
Credit Ratings
The University has an "A2" credit rating by Moody's Investors Services, and an "A" credit rating
by Standard & Poor's. The highest achievable ratings are "Aaa" and "AAA", respectively. The
University's capacity to meet its financial obligations is considered strong based upon these
ratings.
Looking Ahead
The ability of the University to fulfill its mission and execute its strategic plan is directly
influenced by enrollment which increased 3% in 2002 and is projected to increase another 1.2%
in 2003. Reliance on State support, although declining, remains an important nonoperating
revenue source. Fiscal 2003 State appropriations are expected to remain at fiscal 2002 levels
based on the Higher Education Appropriation Bill approved by the Legislature and signed by the
Governor. The University is confronted with continued increases in the cost of health care,
utilities, compensation and unfunded State and Federal mandates.
Additional challenges include major capital needs, with the highest priorities being modernization
of the Pray-Harrold Classroom Building, renewal of the Mark Jefferson Science Building and
expansion of the McKenny Union. In fiscal 2003, the University plans to invest $2.4 million in
facility renewal, a 100% increase over fiscal 2000 spending.
The continuing strategic planning process, which began in fiscal 2001, resulted in the funding of
54 strategic initiatives. A five year, $28 million technology renewal plan will be funded
primarily through the student technology fee. This initiative includes upgrades to faculty and
staff computers, enhanced student computer labs, replacement of the University’s network
infrastructure and upgrade of all core administrative systems (student, financial aid, human
resources/payroll, finance and alumni/development). On July 1, 2002, the finance module of the
new system became operational. Implementation dates for the remaining modules are scheduled
throughout 2003 and 2004. These projects are currently on time and on budget.
4
A new Vice President for Advancement and Executive Director of the Eastern Michigan
University Foundation joined the President’s Cabinet on July 1, 2002, with an invigorated
emphasis on increasing private support.
Academic and administrative program reviews have resulted in placing increased emphasis on the
Honors Program, a new Ph.D. in Technology, and reorganization of the Institutional Research
function under a new senior executive for strategic planning and continuous improvement.
Ongoing initiatives have lead to cost containment, benchmarking with peers, expansion of
corporate and continuing education, and distance learning opportunities. Assessment strategies
are being refined to help measure our performance in these and many other areas resulting in
opportunities to reallocate resources and expand offerings, while enhancing revenues and
containing costs.
Eastern Michigan University continues to be well positioned for the future, both academically and
financially.
5
This page intentionally left blank.
6
EASTERN MICHIGAN UNIVERSITY
STATEMENTS NET ASSETS
As of June 30, 2002 and 2001
2002
ASSETS
Current assets:
Cash and cash equivalents (note 2)
Accounts receivable, net (note 3)
Appropriation receivable
State Building Authority receivable
Inventories
Deposits and prepaid expenses
Accrued interest receivable
Total current assets
$
Noncurrent assets:
Student loans receivable, net (note 3)
Long-term investments (note 2)
Capital assets, net (note 4)
Other
Total noncurrent assets
Total assets
$
LIABILITIES
Current liabilities:
Current portion of long-term debt (note 5)
Accounts payable and accrued liabilities
Accrued payroll
Payroll taxes and accrued fringe benefits
Unearned fees and deposits
Insurance and other claims payable (note 7)
Total current liabilities
Noncurrent liabilities:
Accrued compensated absences (note 6)
Long-term debt (note 5)
Long-term unearned fees and deposits
Total noncurrent liabilities
Total liabilities
$
$
NET ASSETS
Invested in capital assets, net of related debt
Restricted, expendable
Unrestricted
Total net assets
$
$
61,073,070
19,087,519
15,934,036
53,095
407,295
1,101,038
315,069
97,971,122
10,815,934
29,254
288,892,719
1,907,019
301,644,926
399,616,048
4,999,774
10,916,167
7,034,534
3,850,261
6,294,700
3,370,916
36,466,352
6,550,655
99,791,701
408,929
106,751,285
143,217,637
184,101,229
45,516,446
26,780,736
256,398,411
The accompanying notes are an integral part of this statement.
7
2001
$
$
$
$
$
$
47,548,893
19,259,838
15,703,186
935,893
555,090
2,368,798
285,084
86,656,782
10,950,142
27,104
286,184,110
1,212,379
298,373,735
385,030,517
4,627,268
11,389,691
6,384,088
3,613,884
6,090,485
3,532,188
35,637,604
6,639,585
95,061,468
873,571
102,574,624
138,212,228
186,495,108
37,318,793
23,004,388
246,818,289
EASTERN MICHIGAN UNIVERSITY
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For the years ended June 30, 2002 and 2001
2002
OPERATING REVENUES
Student tuition and fees
Scholarship allowances
Net student tuition and fees
Federal grants and contracts
Federal financial aid
State grants and contracts
State financial aid
Nongovernmental grants and contracts
Departmental activities
Auxiliary activities, less internal service billings
of $3,439,286 and $3,341,367 in 2002 and 2001, respectively
Other
Total operating revenues
$
OPERATING EXPENSES
Instruction
Research
Public service
Academic support
Student services
Institutional support
Scholarships and fellowships
Operation and maintenance of plant
Auxiliary activities, less internal service billings
of $3,439,286 and $3,341,367 in 2002 and 2001, respectively
Depreciation
Capital additions, net
Other
Total operating expenses
Operating loss
NONOPERATING REVENUES (EXPENSES)
State appropriations
Gifts
Investment income
Interest expense
Other
Net nonoperating revenues before capital items
Capital appropriations
Capital gifts
Total net nonoperating revenues (expenses)
Increase in net assets
NET ASSETS, beginning of year
NET ASSETS, end of year
$
109,042,046
(14,370,689)
94,671,357
5,359,914
11,597,493
1,401,760
3,545,711
7,334,694
4,140,233
$
87,563,390
(11,867,671)
75,695,719
4,584,039
9,376,747
972,781
2,817,837
7,878,650
5,093,269
33,905,120
1,594,176
163,550,458
31,760,401
3,191,462
141,370,905
80,562,280
4,737,630
13,655,862
20,722,264
22,782,604
29,890,095
12,309,541
21,076,765
76,516,740
3,730,569
13,414,269
19,880,664
20,926,356
28,268,741
10,152,564
15,815,563
30,402,603
14,124,818
(7,363,338)
512,561
243,413,685
(79,863,227)
27,733,483
13,355,618
(4,742,072)
595,977
225,648,472
(84,277,567)
87,637,200
2,321,905
3,253,909
(4,963,516)
102,337
88,351,835
86,280,454
2,317,734
4,359,902
(5,471,481)
489,314
87,975,923
1,091,514
2,547,092
8,549,566
89,443,349
99,072,581
9,580,122
14,795,014
246,818,289
256,398,411
The accompanying notes are an integral part of this statement.
8
2001
$
232,023,275
246,818,289
EASTERN MICHIGAN UNIVERSITY
STATEMENTS OF CASH FLOWS
For the years ended June 30, 2002 and 2001
2002
CASH FLOW S FROM OPERATING ACTIVITIES
Cash received from students for tuition and fees
Cash received from auxiliary activities
Cash received from other sources
Grants and contracts
Federal student loan funds received
Student loans granted, net of repayments
Scholarship allowances
Cash paid to suppliers and employees
Cash paid for financial aid
Net cash used by operating activities
$
CASH FLOW S FROM NONCAPITAL FINANCING ACTIVITIES
Cash received from State appropriations
Gifts received from EM U Foundation
Net cash provided by noncapital financing activities
CASH FLOW S FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Cash from State Building Authority authorization
Cash from State appropriations - supplemental
Principal payments/defeasance under debt obligations
Interest paid
Proceeds from sale of bonds
Purchases of capital assets
Other payments
Net cash used by capital and related financing activities
CASH FLOW S FROM INVESTING ACTIVITIES
Payments for long-term investments
Interest received
Net cash provided by investing activities
Net increase/(decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS, beginning of year
2001
109,161,863 $
33,886,983
6,509,858
29,309,588
279,811
113,911
(14,370,689)
(199,646,367)
(28,986,110)
(63,741,152)
87,608,864
31,755,536
4,695,461
25,278,707
364,788
(68,104)
(11,867,671)
(188,483,173)
(23,987,746)
(74,703,338)
87,406,350
2,783,111
90,189,461
85,468,734
2,615,309
88,084,043
882,798
(64,252,261)
(4,963,516)
69,355,000
(15,741,913)
(1,426,214)
(16,146,106)
6,564,479
2,547,092
(3,298,242)
(5,471,481)
12,780,000
(20,244,915)
(1,238,955)
(8,362,022)
(2,150)
3,224,124
3,221,974
(1,972)
4,492,309
4,490,337
13,524,177
9,509,020
47,548,893
38,039,873
CASH AND CASH EQUIVALENTS, end of year
$
61,073,070
$
47,548,893
SUPPLEM ENTAL DISCLOSURE OF NONCASH ITEM S
Capital gifts received related to equipment
$
1,091,514
$
8,549,566
The accompanying notes are an integral part of this statement.
9
EASTERN MICHIGAN UNIVERSITY
STATEMENTS OF CASH FLOWS
For the years ended June 30, 2002 and 2001
(continued)
2002
2001
Reconciliation of net operating revenues (expenses) to net
cash provided (used) by operating activities:
Operating loss
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities:
Depreciation expense
Change in assets and liabilities:
Accounts receivable, net
Inventories
Deposits and prepaid expenses
Student loans receivable, net
Current portion of long term debt
Accounts payable and accrued liabilities
Accrued payroll
Payroll taxes and accrued fringe benefits
Unearned fees and deposits
Insurance and other claims payable
Accrued compensated absences
Long-term unearned fees and deposits
Total change in assets and liabilities
$
Net cash used by operating activities
$
(79,863,227)
14,124,818
(63,741,152)
(84,277,567)
13,355,618
172,319
147,795
1,267,760
134,208
372,506
(473,525)
650,446
236,377
204,215
(161,272)
(88,930)
(464,642)
1,997,257
The accompanying notes are an integral part of this statement.
10
$
(13,515)
(90,095)
(201,921)
(1,579,007)
1,329,026
(3,029,761)
77,953
310,222
1,117,211
(662,178)
(574,681)
(464,643)
(3,781,389)
$
(74,703,338)
EASTERN MICHIGAN UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
(1) Reporting Entity, Basis of Presentation and Summary of Significant Accounting
Policies:
Reporting Entity – Eastern Michigan University ("University") is an institution of higher
education and is considered to be a component unit of the State of Michigan (“State”)
because its Board of Regents is appointed by the Governor of the State. Accordingly, the
University is included in the State’s financial statements as a discrete component unit.
Transactions with the State relate primarily to appropriations, grants from various state
agencies and payments to the State retirement program for certain University employees.
The University is classified as a state instrumentality under Internal Revenue Code
Section 115, and is also classified as a charitable organization under Internal Revenue
Code Section 501(c)(3), and is therefore exempt from federal income taxes. Certain
activities of the University may be subject to taxation as unrelated business income under
Internal Revenue Code Sections 511 to 514.
Basis of Presentation – The accompanying financial statements have been prepared in
accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (“GASB”). The GASB establishes standards
for external financial reporting for public colleges and universities and requires that
financial statements be presented on a consolidated basis to focus on the university as a
whole, with resources classified for accounting and reporting purposes into four net asset
categories according to externally imposed restrictions.
The four required net asset categories are as follows:
•
Invested in capital assets, net of related debt - Capital assets, net of
accumulated depreciation and outstanding principal balances of debt
attributable to the acquisition, construction or improvement of those assets.
•
Restricted, nonexpendable - Net assets subject to externally-imposed
stipulations that they be maintained permanently by the university. (These
assets are recorded in the Eastern Michigan University Foundation financial
statements.)
•
Restricted, expendable - Net assets whose use is subject to externally-imposed
stipulations that can be fulfilled by actions of the university pursuant to those
stipulations or that expire by the passage of time.
•
Unrestricted - Net assets that are not subject to externally-imposed
stipulations. Unrestricted net assets may be designated for specific purposes
by action of the Board of Regents or may otherwise be limited by contractual
agreements with outside parties. (Substantially all unrestricted net assets are
designated for academic and research programs, capital projects and other
initiatives.)
11
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
For the purposes of the Statements of Cash Flows, highly liquid investments, excluding
noncurrent investments, with an original maturity of three months or less are considered
cash equivalents.
Summary of Significant Accounting Policies – Investments in marketable securities are
carried at fair market value as established by the major securities markets. Investment
income includes realized and unrealized gains and losses on investments, interest income
and dividends. Inventories are stated at the lower of cost (first in, first out basis) or
market. Capital assets are recorded at cost or, if acquired by gift, at the fair market value
as of the date of donation. Retirement benefit costs are funded as accrued. Bond
issuance costs are amortized using the effective interest method over the maturities of the
related bonds.
State appropriations are recognized when received or made available. Restricted funds
are recognized as revenue only to the extent expended. Gifts and interest on student
loans are recognized when received.
The preparation of the accompanying financial statements in conformity with generally
accepted accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
Certain 2001 balances have been reclassified to conform with the 2002 presentation.
(2) Cash and Cash Equivalents:
The University utilizes the pooled cash method of accounting for substantially all of its
cash and cash equivalents. The University’s investment policy, as set forth by the Board
of Regents, authorizes investment in securities of the U.S. Treasury and federal agencies,
corporate bonds and notes, commercial paper, time savings deposits, Eurodollars and
certain external mutual funds, separate managed funds and other pooled funds.
Cash and cash equivalents consist of the following as of June 30, 2002 and 2001:
Disbursement accounts
U.S. Treasuries/Agencies
Mutual Funds
2002
$ 910,228
12,228,780
47,934,062
$ 61,073,070
2001
$ (162,976)
9,018,690
38,693,179
$ 47,548,893
Cash and cash equivalents include mutual and pooled investment funds that allow for
daily withdrawals. The mutual and pooled investment funds have short-term to
intermediate-term durations and are stated at quoted market value. The U.S. Treasuries
and federal agencies have short-term durations and are also stated at quoted market value.
All other cash and cash equivalents are stated at amortized cost, which approximates
market.
12
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
All cash and cash equivalents are held in the University's name, as of June 30, 2002 and
2001. The University uses a zero balance account in its cash management system.
Accordingly, any outstanding checks are reflected as negative cash in its disbursement
accounts. As of June 30, 2002, the banks reported balances in the disbursement accounts
at $1,164,162. Of these balances $191,815 was covered by federal depository insurance
and $972,347 was uninsured and uncollateralized. As of June 30, 2001, the banks
reported balances in the disbursement accounts at $2,065,437. Of these balances,
$203,031 was covered by federal depository insurance and $1,862,406 was uninsured and
uncollateralized.
Long-term investments consist of U.S. Treasuries/Agencies valued at $29,254 and
$27,104 as of June 30, 2002 and 2001, respectively.
(3) Accounts Receivable:
Accounts receivable consist of the following, as of June 30, 2002 and 2001:
Sponsor accounts
Student accounts
Charter school appropriation
Third party tuition
Insurance reimbursement
Other
Less allowances for possible collection losses
Accounts receivable, net
2002
$ 4,334,755
8,769,816
4,456,803
1,177,815
2,231,334
20,970,523
(1,883,004)
$ 19,087,519
2001
$ 4,698,676
8,292,956
4,200,339
1,402,636
262,191
2,293,068
21,149,866
(1,890,028)
$ 19,259,838
In addition, the University has student loans receivable of $10,815,934 and $10,950,142,
net of the related allowance of $264,974 and $268,110, as of June 30, 2002 and 2001,
respectively.
(4) Capital Assets:
Capital assets consists of the following, as of June 30, 2001 and 2002:
Additions/
Transfers
Land
Infrastructure
Leasehold improvements
Buildings
Equipment
Construction-in-progress
Accumulated depreciation
Net
Retirements
2002
2001
$ 10,589,978 $
- $
- $
10,589,978
24,241,118
701,993
24,943,111
3,408,874
3,408,874
299,330,126
14,225,873
313,555,999
94,988,500
9,440,691
(3,423,396)
101,005,795
15,128,580
(7,535,130)
7,593,450
447,687,176
16,833,427
(3,423,396)
461,097,207
(161,503,066)
(14,124,818)
3,423,396
(172,204,488)
$ 286,184,110 $
2,708,609 $
- $ 288,892,719
13
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
Depreciation is recognized on a straight-line basis over the estimated useful life of the
asset, as follows:
Classification
Infrastructure
Leasehold improvements
Buildings
Equipment
Life
12 to 60 years
12 to 20 years
40 to 60 years
5 to 10 years
The University has committed $3,202,218 to various construction projects in progress as
of June 30, 2002.
(5) Long-term Debt:
Long-term debt consists of the following as of June 30, 2001 and 2002:
Outstanding Principal
Interest
Retirements/
Rates
Maturity
5.8
2003-2014
3.00-5.00
2003-2026
-
6,860,000
-
6,860,000
variable
2002-2027
-
41,395,000
550,000
40,845,000
4.50-5.875
2003-2030
12,780,000
-
-
12,780,00 0
5.00-6.00
2002-2024
8,925,000
-
390,000
8,535,000
3.60-5.50
2002-2027
38,960,000
-
38,560,000
400,000
3.60-5.125
2002-2011
13,490,000
-
1,085,000
12,405,000
4.65-6.375
2002
22,245,000
-
22,245,000
-
Citizens Bank #1
4.09
2002
700,000
-
700,000
-
Citizens Bank #2
3.98
2003
1,000,000
-
-
1,000,000
4.96
2006
738,750
-
49,250
689,500
Various
Various
849,986
-
673,011
176,975
64,252,261
104,791,475
2001
Additions
defeasance
2002
General Revenue Bonds
of 2002A
$
- $
21,100,000
$
-
$
21,100,000
General Revenue Bonds
of 2002B
General Revenue Bonds
of 2001
G eneral Rev enue B onds
of 2000B
General Rev enue Bonds
of 2000
G eneral Revenue Bonds
of 1997
Refunding B onds
of 1993
Refunding Bonds
of 1992
Bank One
Other
99,688,736
Less current portion long-term debt
Long-term debt
$
69,355,000
$
4,627,268
$ 95,061,468
14
4,999,774
$
99,791,701
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
In March 2002, the University issued $21,100,000 of General Revenue Bonds, Series
2002A, to refund the $20,615,000 1992 General Revenue Refunding Bonds. The bonds
are secured by general revenues of the University. The refunding resulted in an
accounting gain of $662,298 and an economic gain (difference between the present
values of the debt service payments on the old and new debt) of $1,159,108. Bond
issuance costs of $285,616, net of accumulated amortization of $4,760 at June 30, 2002,
are included in other assets in the accompanying financial statements.
In March 2002, the University issued $6,860,000 of General Revenue Bonds, Series
2002B, to fund a new parking deck. The bonds are secured by general revenues of the
University. Bond issuance costs of $185,556, net of accumulated amortization of $3,093
at June 30, 2002, are included in other assets in the accompanying financial statements.
In August 2001, the University entered into a twenty-six year interest rate swap
agreement for $41,395,000 of variable rate 2001 Series General Revenue bonds to refund
and defease in-substance $38,460,000 of the General Revenue Bonds of 1997. Based on
the swap agreement, the University owes interest calculated at a fixed rate of 4.72% to
the counterparty to the swap. In return, the counterparty owes the University interest
based on two indices: (1) the counterparty pays 68% of the LIBOR rate on 60% of the
notional amount; and (2) the counterparty pays the Bond Market Association (BMA) rate
on 40% of the notional amount. Only the net difference in interest payments is actually
exchanged with the counterparty. The University continues to pay interest to the
bondholders at the variable rate provided by the bonds, however, during the term of the
swap agreement, the University effectively pays a fixed rate on the debt. The debt
service requirements to maturity for these bonds, as presented in this note, are based on
that fixed rate. The University will be exposed to variable rates only if the counterparty to
the swap defaults or if the swap is terminated. The University can terminate the swap at
its sole option, after December 1, 2006. A termination of the swap agreement may also
result in the University paying or receiving a termination payment. The defeasance
resulted in an accounting cost of $1,021,525 and an economic gain (difference between
the present values of the debt service payments on the old and new debt) of $1,426,012.
Bond issuance costs of $361,027, net of accumulated amortization of $6,017 at June 30,
2002, are included in other assets in the accompanying financial statements.
In November 2000, the University issued $12,780,000 of General Revenue Bonds, Series
2000B, to fund new residence hall facilities. The bonds are secured by general revenues
of the University. Bond issuance costs of $145,867, net of accumulated amortization of
$7,293 and $2,431 at June 30, 2002 and 2001 respectively, are included in other assets in
the accompanying financial statements.
In February 2000, the University issued $9,555,000 of General Revenue Bonds, Series
2000 to partially defease in-substance the Series 1992 General Revenue Bonds and to
fund various capital additions and improvements. The bonds are secured by general
revenues of the University.
In September 1993, the University issued $20,800,000 of General Revenue Refunding
Bonds to defease in-substance $18,385,000 of Student Fee Bonds outstanding at that
time.
15
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
In May 1992, the University issued $45,125,000 of General Revenue Refunding Bonds
together with $6,405,583 of trustee held reserves to defease in-substance, $46,696,000 of
Housing and Student Fee Bonds outstanding at that time.
The trust account assets and the liability for the defeased bonds are not recorded as assets or
liabilities in the financial statements of the University. At June 30, 2002, the aggregate amount of
outstanding principal on all bonds which have been defeased is $44,241,969.
Certain debt agreements require student fees to equal or exceed 200% of the related debt
service. The University is in compliance with these covenants.
Principal and interest on long-term debt are payable from operating revenues, allocated
student fees and the excess of revenues over expenditures of specific auxiliary activities.
The obligations are generally callable. The future amounts of principal and interest
payments required by the debt agreements are as follows:
Principal
2003
2004
2005
2006
2007
2008 - 2012
2013 - 2017
2018 - 2022
2023 – 2027
2028 – 2030
Total
$
4,999,774
4,140,175
4,304,776
4,916,750
4,475,000
21,705,000
15,240,000
19,470,000
23,110,000
2,430,000
$104,791,475
Interest
$ 5,688,592
5,101,282
4,886,482
4,665,390
4,404,848
18,369,127
12,948,721
9,354,698
4,076,997
278,438
$ 69,774,575
Total
$ 10,688,366
9,241,457
9,191,258
9,582,140
8,879,848
40,074,127
28,188,721
28,824,698
27,186,997
2,708,438
$174,566,050
(6) Retirement Benefits:
Through December 31, 1995, the University offered participation in one of two
retirement plans for all qualified employees: the Michigan Public School Employees’
Retirement System (“MPSERS”) and the Teachers Insurance and Annuities Association College Retirement Equities Fund (“TIAA-CREF”). As of January 1, l996, the
University no longer offered participation in MPSERS to new employees due to the
Michigan Public Act 272 of 1995 which enabled the University to withdraw from
MPSERS.
MPSERS is a cost sharing multiple employer noncontributory defined benefit retirement
plan through the Michigan State Employees’ Retirement System. The University’s costs
for the MPSERS plan include 1) contributions based on member payroll to fund normal
pension costs, 2) contributions to fund a portion of the plans unfunded actuarial accrued
liability, and 3) contributions for retiree health insurance, at a fixed dollar amount
determined annually by MPSERS.
The cost of the MPSERS plan allocated to the University, all of which was contributed in
the applicable year, was approximately $4,627,000, $4,753,000, and $3,991,000 for the
16
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
years ended June 30, 2002, 2001 and 2000, respectively. Further pension data audited by
the Office of the Auditor General of the State of Michigan, for the Michigan State
Employees Retirement System is included in the State of Michigan’s Comprehensive
Annual Financial Report.
TIAA-CREF is a defined contribution retirement plan. Substantially all full-time
employees of the University are eligible to participate in the TIAA-CREF plan.
Employee benefits generally vest immediately. The University contributes a specified
percentage of employee wages, as defined by the appropriate labor contract. For the
years ended June 30, 2002 and 2001, the University contributed approximately
$7,874,000 and $7,236,000, respectively, to the TIAA-CREF plan. The University has
no liability beyond its own contribution under the TIAA-CREF plan.
In addition, the University provides post-retirement health care benefits to certain eligible
retirees. The benefits are provided through a reimbursement of insurance premiums paid
by such eligible retirees. The reimbursement expenses incurred for the years ended June
30, 2002 and 2001 were approximately $50,000 and $40,000, respectively.
The University also provides termination benefits upon retirement resulting from unused
sick days. The University calculates its sick pay liability in accordance with the
provisions of GASB Statement No. 16, Accounting for Compensated Absences. The
liability, included in accrued compensated absences, is approximately $3,430,000 and
$3,520,000 as of June 30, 2002 and 2001, respectively.
(7) Contingencies and Commitments:
In the normal course of its activities, the University is a party to various legal actions.
The University intends to vigorously defend itself against any and all claims and is of the
opinion that the outcome of current legal actions will not have a material effect on the
University's financial position.
The University participates in the Michigan Universities Self-Insurance Corporation
(“MUSIC”), which provides indemnity to members against comprehensive general
liability, errors and omissions, and property losses commonly covered by insurance.
MUSIC also provides risk management and loss control services and programs.
Loss coverages are structured on a three layer basis with each member retaining a portion
of its losses, MUSIC covering the second layer and commercial carriers covering the
third. Comprehensive general liability coverage is provided on an occurrence basis.
Errors and omissions and property coverage are provided on a claims-made basis.
The University is also self-insured for workers' compensation, unemployment
compensation and substantially all employee health benefits.
17
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
Liabilities for estimates of losses retained by the University under MUSIC and reserves
for claims incurred but not reported under self-insurance programs have been established.
(8) Related Party Transactions:
The Eastern Michigan University Foundation ("Foundation") is an independent
corporation formed for the purpose of fund raising and receiving funds for the sole
benefit of the University. As of June 30, 2002 and 2001, assets totaling approximately
$36,840,000 and $39,930,000, respectively, most of which have been restricted by donors
for specific purposes, are held by the Foundation and are not recorded in the
accompanying financial statements. Amounts transferred, both cash and in-kind, to the
University from the Foundation are included in gifts and capital grants and gifts in the
accompanying financial statements and totaled $3,874,626 and $11,164,875 at June 30,
2002 and 2001, respectively.
GASB Statement No. 39, Determining Whether Certain Organizations Are Component
Units, provides criteria for considering certain organizations as component units of
primary organizations. The University is scheduled to adopt this Statement in fiscal 2004
by incorporating financial information of the Foundation into the University’s financial
statements.
Effective April 1, 1996, the University entered into a joint operating agreement with the
Foundation and Eagle Crest Management Corporation ("ECMC"). The agreement calls
for the Foundation to provide management and investment services to the University for
assets received, held by or entrusted to the Foundation in support of the University. The
Foundation also assumed responsibilities relating to gift records and receipts. Beginning
in fiscal year 1998, the Foundation assumed responsibilities for managing Development
Programs. The University is leasing its gifts and records management systems to the
Foundation.
The agreement further calls for ECMC, a wholly-owned subsidiary of the Foundation, to
manage the operations of the University's Eagle Crest Golf Course and Eagle Crest
Conference Center. ECMC's management responsibilities include personnel functions,
benefits administration, financial services, payroll, accounts receivable, accounts payable,
purchasing, budgeting, housekeeping, maintenance, marketing and sales. In connection
with the joint operating agreement, the University pays ECMC a management fee.
Effective July 1, 2001, the University renegotiated its joint operating agreement, resulting
in separate operating agreements with the Foundation and ECMC, with similar
responsibilities held by all parties.
18
EASTERN MICHIGAN UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
(continued)
(9) Natural Classification of Expenses
Operating expenses by natural classification for the years ended June 30, 2002 and 2001
are summarized as follows:
Salaries, wages, benefits
Supplies, travel, equipment
Scholarship expenses
Depreciation
Other
Total operating expenses
2002
$ 155,164,713
60,402,071
12,309,541
14,124,818
1,412,542
$ 243,413,685
19
2001
$ 145,098,656
55,651,400
10,152,564
13,355,618
1,390,234
$ 225,648,472
This page intentionally left blank.
20
EASTERN MICHIGAN UNIVERSITY
SCHEDULE OF NET ASSETS
BY FUND
as of June 30, 2002
General
Fund
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable, net
Appropriation receivable
State Building Authority receivable
Inventories
Deposits and prepaid expenses
Accrued interest receivable
Total current assets
Noncurrent assets:
Student loans receivable, net
Long-term investments
Capital assets, net
Other
Total noncurrent assets
Total assets
21
LIABILITIES
Current liabilities:
Current portion of long-term debt
Accounts payable and accrued liabilities
Accrued payroll
Payroll taxes and accrued fringe benefits
Unearned fees and deposits
Insurance and other claims payable
Total current liabilities
Noncurrent liabilities:
Accrued compensated absences
Long-term debt
Long-term unearned fees and deposits
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted, expendable
Unrestricted
Designated
Undesignated
Total net assets
$
$
$
$
$
$
Auxiliary
Activities
Fund
Designated
Fund
12,411,834
6,563,597
15,934,036
86,874
428,870
185,153
35,610,364
35,610,364
2,677,301
6,314,570
3,515,474
3,864,190
2,386,899
18,758,434
6,132,052
6,132,052
24,890,486
6,021,808
4,698,070
10,719,878
$
$
$
$
$
$
13,646,244
4,838,774
29,396
57,433
18,571,847
29,254
29,254
18,601,101
4,863,018
158,985
428,549
5,450,552
27,265
171,429
198,694
5,649,246
12,951,855
12,951,855
$
$
$
$
$
$
Expendable
Restricted
Fund
3,936,288
2,448,083
320,421
173,916
23,856
6,902,564
6,902,564
1,025,430
387,416
334,787
716,559
984,017
3,448,209
345,352
345,352
3,793,561
3,109,003
3,109,003
$
$
$
$
$
$
(1,185,872)
4,290,480
3,104,608
3,104,608
379,025
173,563
3,334
555,922
45,986
45,986
601,908
2,502,700
2,502,700
The accompanying notes are an integral part of this schedule.
Student
Loan
Fund
$
$
$
$
$
$
Plant
Fund
1,085,027
451,523
117
1,536,667
10,815,934
10,815,934
12,352,601
-
-
12,352,601
12,352,601
$
$
$
$
$
$
30,098,893
495,062
53,095
468,856
48,510
31,164,416
288,892,719
1,907,019
290,799,738
321,964,154
4,999,774
1,965,305
207,500
7,172,579
99,791,701
237,500
100,029,201
107,201,780
184,101,229
30,661,145
214,762,374
Agency
Fund
$
$
$
$
$
$
Consolidated
Total
1,080,656
1,080,656
1,080,656
6,088
1,074,568
1,080,656
1,080,656
-
$
$
$
$
$
$
61,073,070
19,087,519
15,934,036
53,095
407,295
1,101,038
315,069
97,971,122
10,815,934
29,254
288,892,719
1,907,019
301,644,926
399,616,048
4,999,774
10,916,167
7,034,534
3,850,261
6,294,700
3,370,916
36,466,352
6,550,655
99,791,701
408,929
106,751,285
143,217,637
184,101,229
45,516,446
22,082,666
4,698,070
256,398,411
EASTERN MICHIGAN UNIVERSITY
SCHEDULE OF
REVENUES, EXPENSES AND CHANGES IN NET ASSETS
BY FUND
for the year ended June 30, 2002
General
Fund
OPERATING REVENUES
Student tuition and fees
Scholarship allowances
Net student tuition and fees
Federal grants and contracts
Federal financial aid
State grants and contracts
State financial aid
Nongovernmental grants and contracts
Departmental activities
Auxiliary activities, less internal service
billings of $3,439,286
Indirect cost recovery (deduction)
Other
Total operating revenues
$
22
OPERATING EXPENSES
Instruction
Research
Public service
Academic support
Student services
Institutional support
Scholarships and fellowships
Operation and maintenance of plant
Auxiliary activities, less internal service
billings of $3,439,286
Depreciation
Capital additions, net
Other
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
State appropriations
Gifts
Investment income
Interest expense
Other
Net nonoperating revenues before transfers & capital items
TRANSFERS IN (OUT)
Mandatory:
Funds for debt service
Matching funds
Perkins match
Non-mandatory:
Other
Total transfers
Capital appropriations
Capital grants and gifts
Total net nonoperating revenues (expenses)
Increase in net assets
NET ASSETS, beginning of year
NET ASSETS, end of year
$
Designated
Fund
90,696,514
90,696,514
670,463
$
Expendable
Restricted
Fund
Auxiliary
Fund
18,274,472
18,274,472
192,750
3,469,770
$
71,060
71,060
-
1,063,877
800,206
93,231,060
(188,971)
21,748,021
79,568,092
1,546,726
1,880,417
19,549,892
17,397,575
24,594,323
11,696,608
14,726,305
569,480
371,505
2,358,821
860,831
4,795,147
5,065,872
29,356
201,846
-
170,959,938
(77,728,878)
14,252,858
7,495,163
30,402,603
-
87,637,200
928,229
88,565,429
$
33,905,120
33,976,180
Student
Loan
Fund
5,080,103
11,597,493
1,401,760
3,545,711
7,141,944
-
$
(874,906)
103,401
27,995,506
Plant
Fund
279,811
-
$
Eliminations
-
$
Consolidated
(14,370,689)
(14,370,689)
-
$
109,042,046
(14,370,689)
94,671,357
5,359,914
11,597,493
1,401,760
3,545,711
7,334,694
4,140,233
245,739
525,550
444,830
444,830
(14,370,689)
33,905,120
1,594,176
163,550,458
-
6,143,045
(14,370,689)
-
80,562,280
4,737,630
13,655,862
20,722,264
22,782,604
29,890,095
12,309,541
21,076,765
30,402,603
3,573,577
28,751,889
(756,383)
512,561
512,561
12,989
14,124,818
(7,363,338)
12,904,525
(12,459,695)
(14,370,689)
-
30,402,603
14,124,818
(7,363,338)
512,561
243,413,685
(79,863,227)
1,325,671
1,225,063
2,550,734
234,205
234,205
983,113
444,248
1,427,361
200
196,999
197,199
12,921
669,413
(4,963,516)
(341,911)
(4,623,093)
-
87,637,200
2,321,905
3,253,909
(4,963,516)
102,337
88,351,835
(2,575,686)
(266,524)
(13,333)
(5,064,612)
-
(1,932,566)
-
266,524
-
13,333
9,572,864
-
-
-
(5,988,080)
(8,843,623)
(3,218,749)
(8,283,361)
(1,854,332)
(3,786,898)
(667,931)
(401,407)
13,333
11,729,092
21,301,956
-
-
-
-
-
-
-
1,091,514
-
1,091,514
79,721,806
(5,732,627)
(3,552,693)
210,532
17,770,377
-
89,443,349
223,521
5,310,682
-
9,580,122
12,129,080
12,352,601
209,451,692
214,762,374
-
246,818,289
256,398,411
424,708
2,819,399
9,416,624
311,541
589,882
229,900
14,954,266
5,569
1,992,928
1,762,536
20,884
1,025,954
269,571
8,726,950
10,719,878
11,189,319
12,951,855
3,088,119
3,109,003
2,233,129
2,502,700
$
$
$
$
The accompanying notes are an integral part of this schedule.
$
$
$
EASTERN MICHIGAN UNIVERSITY
SCHEDULE OF NET ASSETS
BY FUND
as of June 30, 2001
General
Fund
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable, net
Appropriation receivable
State Building Authority receivable
Inventories
Deposits and prepaid expenses
Accrued interest receivable
Total current assets
Noncurrent assets:
Student loans receivable, net
Long-term investments
Capital assets, net
Other
Total noncurrent assets
Total assets
23
LIABILITIES
Current liabilities:
Current portion of long-term debt
Accounts payable and accrued liabilities
Accrued payroll
Payroll taxes and accrued fringe benefits
Unearned fees and deposits
Insurance and other claims payable
Total current liabilities
Noncurrent liabilities:
Accrued compensated absences
Long-term debt
Long-term unearned fees and deposits
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted, expendable
Unrestricted
Designated
Undesignated
Total net assets
$
$
$
$
$
$
Auxiliary
Activities
Fund
Designated
Fund
6,929,387
6,660,470
15,703,186
131,170
1,806,994
136,662
31,367,869
31,367,869
2,013,297
5,662,688
3,297,910
3,123,200
2,322,076
16,419,171
6,221,748
6,221,748
22,640,919
5,387,673
3,339,277
8,726,950
$
$
$
$
$
$
11,862,582
4,645,890
46,626
61,027
16,616,125
27,104
27,104
16,643,229
4,464,356
129,341
405,145
4,998,842
26,497
428,571
455,068
5,453,910
11,189,319
11,189,319
$
$
$
$
$
$
Expendable
Restricted
Fund
3,903,861
2,262,489
423,920
280,329
25,518
6,896,117
6,896,117
978,804
408,652
315,974
549,102
1,210,112
3,462,644
345,354
345,354
3,807,998
3,088,119
3,088,119
$
$
$
$
$
$
(1,589,132)
4,653,676
3,064,544
3,064,544
589,098
183,407
12,924
785,429
45,986
45,986
831,415
2,233,129
2,233,129
The accompanying notes are an integral part of this schedule.
Student
Loan
Fund
$
$
$
$
$
$
Plant
Fund
753,489
425,300
149
1,178,938
10,950,142
10,950,142
12,129,080
-
-
12,129,080
12,129,080
$
$
$
$
$
$
23,890,616
612,013
935,893
234,849
61,728
25,735,099
286,184,110
1,212,379
287,396,489
313,131,588
4,627,268
3,338,660
207,500
8,173,428
95,061,468
445,000
95,506,468
103,679,896
186,495,108
22,956,584
209,451,692
Agency
Fund
$
$
$
$
$
$
Consolidated
Total
1,798,090
1,798,090
1,798,090
5,476
1,792,614
1,798,090
1,798,090
-
$
$
$
$
$
$
47,548,893
19,259,838
15,703,186
935,893
555,090
2,368,798
285,084
86,656,782
10,950,142
27,104
286,184,110
1,212,379
298,373,735
385,030,517
4,627,268
11,389,691
6,384,088
3,613,884
6,090,485
3,532,188
35,637,604
6,639,585
95,061,468
873,571
102,574,624
138,212,228
186,495,108
37,318,793
19,665,111
3,339,277
246,818,289
EASTERN MICHIGAN UNIVERSITY
SCHEDULE OF
REVENUES, EXPENSES AND CHANGES IN NET ASSETS
BY FUND
for the year ended June 30, 2001
General
Fund
OPERATING REVENUES
Student tuition and fees
Scholarship allowances
Net student tuition and fees
Federal grants and contracts
Federal financial aid
State grants and contracts
State financial aid
Nongovernmental grants and contracts
Departmental activities
Auxiliary activities, less internal service
billings of $3,341,367
Indirect cost recovery (deduction)
Other
Total operating revenues
$
24
OPERATING EXPENSES
Instruction
Research
Public service
Academic support
Student services
Institutional support
Scholarships and fellowships
Operation and maintenance of plant
Auxiliary activities, less internal service
billings of $3,341,367
Depreciation
Capital additions, net
Other
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
State appropriations
Gifts
Investment income
Interest expense
Other
Net nonoperating revenues before transfers & capital items
TRANSFERS IN (OUT)
Mandatory:
Funds for debt service
Matching funds
Perkins match
Non-mandatory:
Other
Total transfers
Capital appropriations
Capital grants and gifts
Total net nonoperating revenues (expenses)
Increase in net assets
NET ASSETS, beginning of year
NET ASSETS, end of year
$
73,983,524
73,983,524
705,749
Auxiliary
Activities
Fund
Designated
Fund
$
13,512,153
13,512,153
2,130
4,387,520
$
Expendable
Restricted
Fund
67,713
67,713
-
834,996
708,456
76,232,725
17,901,803
31,760,401
31,828,114
75,028,074
1,534,741
1,617,016
19,059,172
16,124,534
23,599,881
10,001,553
12,637,350
886,138
255,466
2,606,569
521,128
4,290,805
4,375,744
40,286
14,537
-
159,602,321
(83,369,596)
12,990,673
4,911,130
27,733,483
-
86,280,454
949,411
87,229,865
$
Student
Loan
Fund
4,024,873
9,376,747
972,781
2,817,837
7,876,520
-
$
(834,996)
399,399
24,633,161
Plant
Fund
559,166
-
$
Consolidated
Total
Eliminations
-
$
(11,867,671)
(11,867,671)
-
$
87,563,390
(11,867,671)
75,695,719
4,584,039
9,376,747
972,781
2,817,837
7,878,650
5,093,269
1,683,807
2,242,973
399,800
399,800
(11,867,671)
31,760,401
3,191,462
141,370,905
-
3,159,903
(11,867,671)
-
76,516,740
3,730,569
13,414,269
19,880,664
20,926,356
28,268,741
10,152,564
15,815,563
27,733,483
4,094,631
24,820,240
(187,079)
595,977
595,977
1,646,996
13,355,618
(4,742,072)
11,773,449
(11,373,649)
(11,867,671)
-
27,733,483
13,355,618
(4,742,072)
595,977
225,648,472
(84,277,567)
1,266,914
1,529,189
2,796,103
381,098
381,098
959,744
233,051
1,192,795
200
226,042
226,242
90,876
1,274,162
(5,471,481)
256,263
(3,850,180)
-
86,280,454
2,317,734
4,359,902
(5,471,481)
489,314
87,975,923
(2,638,602)
(228,157)
(13,333)
(4,341,735)
-
(1,474,000)
(93,211)
-
321,368
-
13,333
8,454,337
-
-
-
(3,393,649)
(6,273,741)
(999,558)
(5,341,293)
(2,680,906)
(4,248,117)
(894,816)
(573,448)
13,333
7,968,929
16,423,266
-
-
2,547,092
-
-
-
-
-
8,549,566
-
2,547,092
8,549,566
83,503,216
(2,545,190)
(3,867,019)
239,575
21,122,652
-
99,072,581
1,886,571
9,749,003
-
14,795,014
10,242,509
12,129,080
199,702,689
209,451,692
-
232,023,275
246,818,289
602,528
1,940,362
9,190,684
300,364
511,017
293,116
11,978,396
3,773
133,620
2,365,940
227,612
619,347
432,268
8,593,330
8,726,950
8,823,379
11,189,319
2,860,507
3,088,119
1,800,861
2,233,129
$
$
$
The accompanying notes are an integral part of this schedule.
$
$
$
$
EASTERN MICHIGAN UNIVERSITY
NOTES TO THE SUPPLEMENTARY SCHEDULES
Basis of Presentation:
The University utilizes four current and three noncurrent fund groupings for internal
operating purposes, as follows:
Current Fund Groupings:
General Fund is used to account for general operating activities.
Designated Fund is used to account for funds designated by University policy.
Auxiliary Activities Fund is used to account for services and facilities provided
to students, faculty, staff and the public.
Expendable Restricted Fund is used to account for funds restricted by donor or
supporting agency.
Noncurrent Fund Groupings:
Student Loan Fund is used to account for transactions related to loans to students.
Plant Fund is used to account for transactions relating to investments in physical
properties, indebtedness incurred in the financing thereof and reserves for
maintenance, replacement, insurance and debt service.
Agency Fund is used to account for amounts withheld from payrolls and amounts
held in custody for students, University-related organizations and others.
The eliminations on the Schedules of Revenues, Expenses and Changes in Net Assets by
Fund represent the reclass of scholarship allowances as required by Governmental
Accounting Standards Board Statement No. 35, Basic Financial Statements and
Management’s Discussion and Analysis for Public Colleges and Universities.
Certain 2001 balances have been reclassified to conform with the 2002 presentation.
25