Cover2_Cover2 11/14/11 2:42 PM Page 1
Annual Financial Report
For the Years Ended June 30, 2011 and 2010
A member of the Minnesota State Colleges and Universities system
METROPOLITAN STATE UNIVERSITY
A MEMBER OF THE
MINNESOTA STATE COLLEGES AND UNIVERSITIES SYSTEM
ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2011 and 2010
Prepared by:
Metropolitan State University
2nd FL New Main
700 E. 7th St.
St. Paul, MN 55106-3000
Upon request, this publication is available in alternate formats by calling one of the following:
General number (651) 201-1800
Toll free: 1-888-667-2848
For TTY communication, contact Minnesota Relay Service at 7-1-1 or 1-800-627-3529.
METROPOLITAN STATE UNIVERSITY
ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2011 and 2010
TABLE OF CONTENTS
INTRODUCTION
Page
Transmittal Letter ...................................................................................................................................5
Organizational Chart ..............................................................................................................................9
FINANCIAL SECTION
Independent Auditors’ Report ..............................................................................................................12
Management’s Discussion and Analysis ..............................................................................................14
Basic Financial Statements
Statements of Net Assets ...............................................................................................................22
Metropolitan State University Foundation – Statements of Financial Position ............................ 23
Statements of Revenues, Expenses, and Changes in Net Assets ...................................................24
Metropolitan State University Foundation – Statements of Activities ..........................................25
Statements of Cash Flows .............................................................................................................26
Notes to the Financial Statements .................................................................................................28
REQUIRED SUPPLEMENTARY INFORMATION SECTION
Schedule of Funding Progress for Net Other Postemployment Benefits ............................................. 51
SUPPLEMENTARY SECTION
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards .................................................................. 54
1
This page intentionally left blank
2
INTRODUCTION
3
This page intentionally left blank
4
5
6
7
8
Gary Seiler
Interim Provost & Vice
President for Academic
Affairs
9
Trenda Boyum-Breen
Vice President for
Student Affairs
Murtuza Siddiqui
Vice President
Administration & Finance
Robert Heuermann
Vice President for
University Advancement
Sue K. Hammersmith
President
Steven J. Rosenstone
Chancellor
BOARD OF TRUSTEES
Organizational Chart
Truly Webb
Affirmative Action
Officer
Thomas Cook
Executive Assistant to the
President & Director,
Government Relations
The financial activity of the Metropolitan State University is included in this report. The University is one
of 32 colleges and universities included in the Minnesota State Colleges and Universities Annual Financial
Report which is issued separately.
The University’s portion of the Revenue Fund is also included in this report. The Revenue Fund
activity is included both in the Minnesota State Colleges and Universities Annual Financial Report and
in a separately issued Revenue Fund Annual Financial Report.
All financial activity of Minnesota State Colleges and Universities is included in the state of Minnesota
Comprehensive Annual Financial Report.
10
FINANCIAL SECTION
11
12
13
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
INTRODUCTION
The following discussion and analysis provides an overview of the financial position and activities of Metropolitan
State University, a member of Minnesota State Colleges and Universities, at June 30, 2011, 2010 and 2009 and for
the years then ended. This discussion has been prepared by management and should be read in conjunction with the
financial statements and accompanying notes, which follow this section.
Metropolitan State University is one of 32 colleges and universities comprising Minnesota State Colleges and
Universities. The Minnesota State Colleges and Universities system is governed by a 15 member Board of Trustees
appointed by the governor. Twelve trustees serve six-year terms, eight representing each of Minnesota’s
congressional districts and four serving at large. Three student trustees – one from a state university, one from a
community college and one from a technical college – serve two-year terms. The Board of Trustees selects the
chancellor, vice chancellors, and college and university presidents, and has broad policy responsibility for system
planning, academic programs, fiscal management, personnel, admissions requirements, tuition and fees, and policies
and procedures.
The University is a comprehensive public institution of higher learning with over 11,000 students, 95 percent of
which are transfer students. The average age of the student on campus is 32 years old and is enrolled at the
University with an average of four transcripts. Approximately 90 percent of students work while attending school,
most full time. The University employs about 1,000 faculty and staff members, including approximately 550 parttime community faculty who are often practitioners in the fields in which they teach.
Metropolitan State University offers certificate programs; baccalaureate, masters and doctorate degrees, and the
University participates in the Minnesota Transfer Curriculum. The University is accredited by the Higher Learning
Commission. The largest programs based on enrollment are individualized programs, business, accounting,
information and computer science, nursing and criminal justice. Our individualized program, which enables
students to customize degree requirements to fit their individual academic aspirations, is one of the unusual
opportunities offered at Metropolitan State University. The Urban Teacher Program, which was developed in
collaboration with Minneapolis Community and Technical College, Inver Hills Community College, and the
Minneapolis and St. Paul Public Schools, is a unique program designed to increase the number of teachers of color
in urban schools.
The University’s Minneapolis campus is co-located with Minneapolis Community and Technical College. This
relationship continues to provide an exciting opportunity to collaborate with a partner school on programming to
benefit our combined student population, by providing a learning bridge for the students who are transitioning from
a two-year system to a four-year state university.
The University’s School of Law Enforcement and Criminal Justice is col-ocated in the Law Enforcement and
Criminal Justice Education Center on the Brooklyn Park campus of Hennepin Technical College. This facility
provides the unique environment needed for criminal justice and law enforcement training, including an on-campus
simulation center and forensics laboratory, and specialized SKILLS program.
Metropolitan State University continues to partner with St. Paul College and Minneapolis Community and Technical
College in “The Power of You” program. This is a program that makes the first two years of college available
tuition free and is available to individuals who have graduated from a public school in Minneapolis or St. Paul
beginning in 2007 and are current residents of either of these cities.
14
FINANCIAL HIGHLIGHTS
The University’s financial results during fiscal year 2011 are improved. Assets totaled $83.5 million and $87.9
million in fiscal years 2011 and 2010, respectively, compared to liabilities of $27.4 million and $30.0 million,
respectively. Net assets, which represent the residual interest in the University’s assets after liabilities are deducted,
are comprised of $34.9 million and $41.0 million, respectively, in capital assets net of related debt, restricted assets
of $2.9 million and $3.0 million, respectively, and unrestricted net assets of $18.3 million and $13.9 million,
respectively.
USING THE FINANCIAL STATEMENTS
The University’s financial report includes three financial statements: the statements of net assets; the statements of
revenues, expenses and changes in net assets; and the statements of cash flows. These financial statements are
prepared in accordance with applicable generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) through authoritative pronouncements.
STATEMENTS OF NET ASSETS
The statements of net assets present the financial position of the University at the end of the fiscal year and include
all assets and liabilities of the University as measured using the accrual basis of accounting. The difference between
total assets and total liabilities (net assets) is one indicator of the current financial condition of the University, while
the change in net assets is an indicator of whether the overall financial condition has improved or declined during
the year. Capital assets are stated at historical cost less an allowance for depreciation, with current year depreciation
reflected as a period expense on the statement of revenues, expenses and changes in net assets. A summary of the
University’s assets, liabilities and net assets as of June 30, 2011, 2010 and 2009, respectively, is as follows (in
thousands):
Current assets
Restricted assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Net assets
$
$
2011
35,245
1,445
46,829
83,519
11,111
16,285
27,396
56,123
$
$
2010
29,544
2,271
56,116
87,931
11,110
18,874
29,984
57,947
$
$
2009
25,106
1,329
45,583
72,018
10,127
15,657
25,784
46,234
Current assets consist primarily of cash and cash equivalents totaling $32.1 million at June 30, 2011, an overall
increase of $6.0 million in unrestricted cash and cash equivalents over the prior year. This increase is the result of
increases in tuition and fees, improved collection efforts and enforced payment deadlines, and improved grant
management.
Current liabilities consist primarily of salaries and benefits payable, unearned revenue, accounts payable and
restricted accounts payable, current obligations for repayment of debt, and compensation benefits. Current liabilities
remained stable over the prior year, due primarily to increases in salaries and benefits payable, accounts payable and
unearned revenue, offset by decreases in restricted accounts payable.
15
Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets as of June 30, 2011, 2010 and 2009, respectively, are summarized as follows (in thousands):
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
$
$
2011
34,953 $
2,878
18,292
56,123 $
2010
41,089
2,964
13,894
57,947
$
$
2009
33,272
2,929
10,033
46,234
Invested in capital assets, net of related debt - represents the University’s capital assets net of accumulated
depreciation and outstanding principal balances of debt attributable to the acquisition, construction or improvement
of those assets.
Restricted - primarily includes debt service, donations received for specific purposes, capital projects, faculty
contracts, and funds reserved for legislatively mandated purposes.
Changes in net assets for fiscal years 2009 through 2011 are presented as follows:
Net Assets (In Thousands)
45,000
40,000
Invested in Capital
Assets (net)
35,000
30,000
Restricted expendable,
bond covenants
25,000
20,000
15,000
Restricted expendable,
other
10,000
Unrestricted
5,000
2011
2010
2009
16
CAPITAL AND DEBT ACTIVITIES
One of the critical factors in continuing the quality of the University’s academic programs and student life is the
development and renewal of its capital assets. During fiscal year 2011 the University updated its facilities master
plan to maintain its complement of existing facilities while systematically addressing new construction needs.
Capital assets as of June 30, 2011, totaled $46.8 million, net of accumulated depreciation of $28.4 million.
The Law Enforcement and Criminal Justice Education Center (LECJEC), a $15.6 million collaborative project
between the University, Hennepin Technical College and Minneapolis Community and Technical College was
completed in time for fall 2010 classes. The LECJEC is located on the Brooklyn Park, Minnesota, campus of
Hennepin Technical College. As of July 1, 2010, ownership of the LECJEC transferred from the University to
Hennepin Technical College. This transfer of ownership resulted in a reduction of the University’s fiscal year 2011
capital assets of $13.4 million, reduction in prepaid assets of $0.3 million, decrease in short- and long-term debt of
$4.45 million, and decrease in net assets restricted for capital projects of $9.2 million.
In the 2010 legislative session, the University received $5.8 million in capital bonding for renovation of a
condemned building into smart classrooms. The smart classroom project was completed during fiscal year 2011. In
the 2011 legislative session, the University was awarded $3.44 million in general obligation bonds for design of a
new Science Education Center on the St. Paul campus. The design project is expected to be completed during fiscal
year 2012.
Additional information on capital and debt activities can be found in Note 5 and Note 7 to the financial statements.
Capital Assets, Net of Depreciation (In Thousands)
60,000
Land
50,000
Construction in Progress
40,000
Buildings and
Improvements
30,000
Equipment
20,000
Library Collections
10,000
Total
2011
2010
2009
17
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
The Statement of Revenues, Expenses and Changes in Net Assets present the University’s results of operations for
the year. When reviewing the full statements, users should note that GASB requires classification of state
appropriations as non-operating revenue. Summarized statements for the years ended June 30, 2011, 2010 and 2009,
respectively, follows (in thousands):
2011
Operating revenue:
Tuition, fees and sales, net
Restricted student payments
Other revenue
Total operating revenue
$
2010
2009
29,122 $
1,376
45
30,543
27,496 $
1,385
47
28,928
24,748
1,224
54
26,026
Nonoperating revenue:
State appropriations
Capital appropriations
Other
Total nonoperating revenue
Total revenue
21,650
3,797
17,444
42,891
73,434
22,695
8,309
16,293
47,297
76,225
24,196
621
10,655
35,472
61,498
Operating expense:
Salaries and benefits
Services and other expenses
Depreciation
Financial aid, net
Total operating expense
45,829
15,063
2,367
1,820
65,079
43,615
15,835
2,299
2,092
63,841
42,816
13,799
2,306
1,126
60,047
Nonoperating expense:
Interest expense
Other
Total nonoperating expense
Total expense
527
9,652
10,179
75,258
623
48
671
64,512
539
39
578
60,625
Change in net assets
Total net assets, beginning of year
Net assets, end of year
(1,824)
57,947
56,123 $
11,713
46,234
57,947 $
873
45,361
46,234
$
Tuition and state appropriations are the primary sources of funding for the University’s academic programs. Tuition
rates increased by 5.56 percent in fiscal year 2011. The state appropriation decreased in fiscal year 2011 by $1.0
million due to continuing reductions in state funding for higher education.
One way to examine a teaching institution’s focus on its mission is by reviewing the percentage of its operating
expenses dedicated to instructional costs. Instructional costs are defined as costs of direct instruction plus costs for
academic support (i.e. academic advisors, college support staff, library, academic computing, etc.). From the
perspective of the higher education industry, the higher this percentage is, the more mission-focused the institution
is considered to be, with 50 percent as the threshold. The chart below displays this information for Metropolitan
State University for fiscal years 2009, 2010 and 2011. Metropolitan State University has consistently exceeded this
threshold each of those years, investing 68 percent of its operating budget into direct instructional activities during
fiscal year 2011, indicating that the University continues to stay focused on the core teaching mission of the
institution.
18
Operating Expenses by Functional Classification
80%
70%
Instruction / Academic
Support
60%
Institutional Support
50%
Student Services
40%
30%
20%
Scholarships &
Fellowships
10%
Other
0%
2011
2010
2009
COMPONENT UNIT
The Metropolitan State University Foundation is a component unit of Metropolitan State University. As such, the
separately audited financial statements for the Foundation are included, but shown separately from those of the
University in compliance with the requirements of GASB Statement no. 39. Additional information regarding the
Foundation can be found in Note18 to the financial statements. The Foundation helps the University raise funds,
provides financial support to students, and assists the University fund projects consistent with the University’s
mission.
ECONOMIC FACTORS THAT WILL AFFECT THE FUTURE
Looking toward the future, management believes that the University is positioned to continue to remain in a
relatively sound financial condition and level of excellence. Unlike more traditional institutions, Metropolitan State
University’s focus has always been on adult students, which are projected to be a growth market in higher education.
With nearly 100,000 students in attendance at metropolitan area community and technical colleges, the University is
positioning itself to be the provider for upper level courses for those students. As the most diverse public university
in the state, Metropolitan State University has worked hard to become an institution of choice for communities of
color and recent immigrants, and thus is well-positioned to take advantage of the demographic projections in those
groups.
An ongoing challenge for the University will be staying financially accessible, given the shifts in funding sources
for public higher education in Minnesota. In the year 2000, the state paid about 65 percent of the cost of education
for our students, with tuition and other revenue covering the other 35 percent. In fiscal year 2011, the University’s
base appropriation declined to 31 percent of total revenue, and tuition and other revenue accounted for 69 percent.
The more reliant the University must be on tuition as its primary source of income, the more difficult it will be to
remain affordable. With a projected state deficit of approximately $5.8 billion in the 2012-2013 biennium, the
prospects for improvement in state funding towards higher education are unlikely. In addition to declining state
funds, the University is impacted by the expiration of $3.1 million in federal stimulus funds, beginning with the
fiscal year 2012 budget. Looking into the future, we expect our enrollment to slow down and not remain as strong as
it was during fiscal year 2011.
19
Collective bargaining for the 2012-2013 biennium will also be challenging. The projected state budget deficit will
pose additional challenges as wages have been frozen for most bargaining units for the past two years. In addition,
health insurance costs and retirement contribution rates are anticipated to increase significantly. The competitiveness
of University faculty compensation will also be a factor as the state has declined in national competitiveness over
the last decade.
With the enrollment growth the University has experienced and projected growth for the future, the University is
faced with demands on space to meet its educational needs. The completion of the Smart Classroom project has
added classroom and office space to the St. Paul campus. This has provided some relief, but the University continues
to experience the need for additional classroom space.
In summary, the University will face budget challenges in the upcoming 2012-2013 biennium and beyond as it
attempts to cope with the enrollment growth, as well as with reduced state appropriation.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of Metropolitan State University’s financial position
for all those with an interest in the University. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to:
Vice President for Finance and Administration
Metropolitan State University
700 East 7th Street
St. Paul, MN 55106-5000
20
This page intentionally left blank
21
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF NET ASSETS
AS OF JUNE 30, 2011 AND 2010
(IN THOUSANDS)
Assets
Current Assets
Cash and cash equivalents
Grants receivable
Accounts receivable, net
Prepaid expense
Other assets
Total current assets
Current Restricted Assets
Cash and cash equivalents
Total current restricted assets
Noncurrent Restricted Assets
Other assets
Total noncurrent restricted assets
Total restricted assets
Noncurrent Assets
Capital assets, net
Total noncurrent assets
2011
$
Total Assets
32,142
691
1,331
1,079
2
35,245
2010
$
26,176
603
1,532
1,230
3
29,544
1,434
1,434
2,259
2,259
11
11
1,445
12
12
2,271
46,829
46,829
56,116
56,116
83,519
87,931
Liabilities
Current Liabilities
Salaries and benefits payable
Accounts payable
Unearned revenue
Payable from restricted assets
Interest payable
Funds held for others
Current portion of long-term debt
Other compensation benefits
Total current liabilities
Noncurrent Liabilities
Noncurrent portion of long-term debt
Other compensation benefits
Total noncurrent liabilities
4,325
1,309
3,172
532
54
63
1,001
655
11,111
4,241
587
3,084
1,356
57
47
1,121
617
11,110
11,327
4,958
16,285
14,359
4,515
18,874
Total Liabilities
27,396
29,984
34,953
634
2,244
18,292
41,089
679
2,285
13,894
Net Assets
Invested in capital assets, net of related debt
Restricted expendable, bond covenants
Restricted expendable, other
Unrestricted
Total Net Assets
$
The notes are an integral part of the financial statements.
22
56,123
$
57,947
METROPOLITAN STATE UNIVERSITY FOUNDATION
STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2011 AND 2010
(IN THOUSANDS)
Restated
2010
2011
Assets
Current Assets
Cash and cash equivalents
Investments
Pledges and contributions receivable
Other receivables
Total current assets
$
Noncurrent Assets
Investments held for endowment
Other assets held for endowment
Total noncurrent assets
$
Liabilities and Net Assets
Current Liabilities
Accounts payable
Scholarships payable
$
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
1,581
766
480
4
2,831
2,597
55
2,652
5,483
122
54
176
$
$
$
353
2,544
2,410
5,307
Total Liabilities and Net Assets
$
The notes are an integral part of the financial statements.
23
5,483
1,614
437
180
3
2,234
2,340
177
2,517
4,751
255
39
294
360
1,741
2,356
4,457
$
4,751
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
(IN THOUSANDS)
2011
Operating Revenues
Tuition, net
Fees, net
Sales, net
Restricted student payments, net
Other income
Total operating revenues
$
Operating Expenses
Salaries and benefits
Purchased services
Supplies
Repairs and maintenance
Depreciation
Financial aid, net
Other expense
Total operating expenses
Operating loss
Nonoperating Revenues (Expenses)
Appropriations
Federal grants
State grants
Private grants
Interest income
Interest expense
Grants to other organizations
Total nonoperating revenues (expenses)
Income Before Other Revenues, Expenses, Gains, or Losses
Capital appropriations
Capital grants
Gain (loss) on disposal of capital assets
Change in net assets
Total Net Assets, Beginning of Year
Total Net Assets, End of Year
$
The notes are an integral part of the financial statements.
24
26,272
1,878
972
1,376
45
30,543
2010
$
24,855
1,738
903
1,385
47
28,928
45,829
8,975
1,547
1,200
2,367
1,820
3,341
65,079
(34,536)
43,615
9,118
1,581
1,294
2,299
2,092
3,842
63,841
(34,913)
21,650
13,335
2,984
898
227
(527)
(24)
38,543
22,695
11,043
4,092
745
91
(623)
(24)
38,019
4,007
3,106
3,797
(9,629)
1
(1,824)
8,309
322
(24)
11,713
57,947
56,123
$
46,234
57,947
METROPOLITAN STATE UNIVERSITY FOUNDATION
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
(IN THOUSANDS)
Unrestricted
Support and Revenue
Contributions
Unrealized gains
Investment income
Net assets released from restrictions
Total support and revenue
$
Expenses
Program services
Program Services
Total program services
Supporting services
Management and general
Fundraising
Total supporting services
Total expenses
Change in Net Assets
Net Assets, Beginning of Year
Net Asset Transfer Related to Application of UPMIFA
$
Net Assets, End of Year
88 $
10
17
801
916
Temporarily
Restricted
1,298 $
305
(800)
803
Permanently
Restricted
50 $
5
(1)
54
2011
1,436 $
15
322
1,773
Restated
2010
925
10
214
1,149
715
715
-
-
715
715
759
759
40
168
208
923
-
-
40
168
208
923
41
188
229
988
(7)
803
54
850
161
344
16
353 $
1,757
(16)
2,544 $
2,356
2,410 $
4,457
5,307 $
The notes are an integral part of the financial statements.
25
4,296
4,457
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
(IN THOUSANDS)
2011
Cash Flows from Operating Activities
Cash received from customers
Cash paid to suppliers for goods or services
Cash payments for employees
Financial aid disbursements
Net cash flows used in operating activities
$
30,793
(14,239)
(45,349)
(1,836)
(30,631)
2010
$
29,198
(16,778)
(43,293)
(2,076)
(32,949)
Cash Flows from Noncapital Financing Activities
Appropriations
Agency activity
Federal grants
State grants
Private grants
Grants to other organizations
Net cash flows from noncapital financing activities
21,650
15
13,296
2,984
898
(24)
38,819
22,695
(162)
11,202
4,092
745
(24)
38,548
Cash Flows from Capital and Related Financing Activities
Investment in capital assets
Capital appropriation
Capital grant
Proceeds from sale of capital assets
Proceeds from borrowing
Proceeds from bond premium
Interest paid
Repayment of bond principal
Net cash flows used in capital and related financing activities
(7,776)
3,797
2
1,647
605
(467)
(989)
(3,181)
(11,875)
8,309
322
1
4,060
149
(757)
(1,092)
(883)
Cash Flows from Investing Activities
Investment earnings
Net cash flows from investing activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
$
The notes are an integral part of the financial statements.
26
134
134
37
37
5,141
4,753
28,435
23,682
33,576
$
28,435
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
(IN THOUSANDS)
2011
Operating Loss
$
Adjustment to Reconcile Operating Loss to
Net Cash Flows used in Operating Activities
Depreciation
Change in assets and liabilities
Accounts receivable
Accounts payable
Salaries and benefits payable
Other compensation benefits
Unearned revenues
Other liabilities
Net reconciling items to be added to operating income
Net cash flow used in operating activities
Non-Cash Investing, Capital, and Financing Activities
Capital projects on account
Investment earnings on account
Amortization of bond premium
Loss on retirement of capital assets
Capital assets net of related debt transfer to Hennepin Technical College
27
$
$
(34,536)
2010
$
(34,913)
2,367
2,299
184
750
84
480
67
(27)
3,905
(30,631)
(256)
(835)
144
95
526
(9)
1,964
(32,949)
621
2
217
(9,629)
$
$
1,396
3
57
(24)
-
METROPOLITAN STATE UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
1.
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Basis of Presentation — The reporting policies of Metropolitan State University, a member of the Minnesota
State Colleges and Universities system, conform to generally accepted accounting principles (GAAP) in the
United States as prescribed by the Governmental Accounting Standards Board (GASB). The statements of net
assets; statements of revenues, expenses, and changes in net assets; and statements of cash flows include
financial activities of Metropolitan State University.
Financial Reporting Entity — Minnesota State Colleges and Universities is an agency of the state of Minnesota
and receives appropriations from the state legislature, substantially all of which are used to fund general
operations. Metropolitan State University receives a portion of the Minnesota State Colleges and Universities’
appropriation. The operations of most student organizations are included in the reporting entity because the
Board of Trustees has certain fiduciary responsibilities for these resources.
Discretely presented component units are legally separate organizations that raise and hold economic resources
for the direct benefit of a college or university in accordance with GASB Statement No. 39, Determining
Whether Certain Organizations are Component Units. Metropolitan State University Foundation is considered
significant to the University and is included as a discretely presented component unit and separately identified
in Note 18. Complete financial statements may be obtained from Metropolitan State University Foundation,
700 East Seventh Street, St. Paul, MN 55106-5000.
Basis of Accounting — The basis of accounting refers to when revenues and expenses are recognized and
reported in the financial statements. The accompanying financial statements have been prepared as a special
purpose government entity engaged in business type activities. Business type activities are those that are
financed in whole or in part by fees charged to external parties for goods or services. Accordingly, these
financial statements have been presented using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.
Eliminations have been made to minimize the double counting of internal activities. Interfund receivables and
payables have been eliminated in the statements of net assets.
Minnesota State Colleges and Universities applies all applicable Financial Accounting Standards Board
statements issued prior to November 30, 1989, and GASB statements issued since that date.
Budgetary Accounting — University budgetary accounting, which is the basis for annual budgets and the
allocation of state appropriations, differs from GAAP. University budgetary accounting includes all receipts
and expenses up to the close of the books in August for the budget fiscal year. Revenues not yet received by the
close of the books are not included. The criterion for recognizing expenses is the actual disbursement, not when
the goods or services are received.
The state of Minnesota operates on a two year (biennial) budget cycle ending on June 30 of odd numbered
years. Minnesota State Colleges and Universities is governed by a 15 member Board of Trustees appointed by
the Governor with the advice and consent of the state senate. The Board approves the University biennial
budget request and allocation as part of the Minnesota State Colleges and Universities’ total budget.
Budgetary control is maintained at the University. The University President has the authority and responsibility
to administer the budget and can transfer money between programs within the University without Board
approval. The budget of the University can be legally amended by the authority of the Vice Chancellor/Chief
Financial Officer.
The state appropriations do not lapse at year end. Any unexpended appropriation from the first year of a
biennium is available for the second year. Any unexpended balance may also carry over into future biennia.
28
Capital Appropriation Revenue — Minnesota State Colleges and Universities is responsible for paying
one third of the debt service for certain general obligation bonds sold for capital projects, as specified in the
authorizing legislation. The portion of general obligation bond debt service that is payable by the state of
Minnesota is recognized by Minnesota State Colleges and Universities as capital appropriation revenue when
the related expenses are incurred. Individual colleges and universities are allocated cash, capital appropriation
revenue, and debt based on capital project expenses.
Cash and Cash Equivalents — The cash balance represents cash in the state treasury and demand deposits in
local bank accounts as well as cash equivalents. Cash equivalents are short term, highly liquid investments
having original maturities (remaining time to maturity at acquisition) of three months or less. Cash and cash
equivalents include amounts in demand deposits, savings accounts, cash management pools, repurchase
agreements, and money market funds.
Restricted cash is cash held for capital projects. The Revenue Fund holds restricted cash for capital projects and
debt service. The Revenue Fund is used to account for the revenues, expenses, and net assets of revenue
producing facilities. It has the authority to sell revenue bonds for the construction and maintenance of revenue
producing facilities.
All balances related to the state appropriation, tuition revenues, and most fees are in the state treasury. The
University has one checking account in a local bank. The activities handled through the local bank include
financial aid, student payroll, auxiliary operations, and student activities.
Investments — The Minnesota State Board of Investment invests the University’s balances in the state treasury,
except for the Revenue Fund, as part of a state investment pool. This asset is reported as a cash equivalent.
Interest income earned on pooled investments is allocated to the colleges and universities.
Cash in the Revenue Fund is invested separately. The Fund contracts with the Minnesota State Board of
Investment and U.S. Bank, N.A. for investment management services. Investments are reported at fair value.
Restricted investments are investments held in the Revenue Fund for capital projects and debt service.
Receivables — Receivables are shown net of an allowance for uncollectible accounts.
Prepaid Expense — Prepaid expense consists primarily of deposits in the state of Minnesota Debt Service Fund
for future general obligation bond payments.
Capital Assets — Capital assets are recorded at cost or, for donated assets, at fair value at the date of
acquisition. Estimated historical cost has been used when actual cost is not available. Such assets are
depreciated or amortized on a straight-line basis over the useful life of the assets.
Estimated useful lives are as follows:
Buildings
Building improvements
Equipment
Library collections
35-40 years
15-20 years
3-20 years
7 years
Equipment includes all items with an original cost of $10,000 and over for items purchased since July 1, 2008,
$5,000 and over for items purchased between July 1, 2003 and June 30, 2008, and $2,000 and over for items
purchased prior to July 1, 2003. Buildings, building improvements, and internally developed software include
all projects with a cost of $250,000 and over for projects started since July 1, 2008, and $100,000 and over for
projects started prior to July 1, 2008. All land and library collection purchases are capitalized regardless of
amount spent.
29
Funds Held for Others — Funds held for others are primarily assets held for students and student organizations.
Long Term Liabilities — The state of Minnesota appropriates for and sells general obligation bonds to support
construction and renovation of the Minnesota State Colleges and Universities’ facilities as approved through the
state’s capital budget process. The University is responsible for a portion of the debt service on the bonds sold
for some University projects. The University may also enter into capital lease agreements for certain capital
assets. Other long term liabilities include compensated absences, early termination benefits, net other
postemployment benefits, and workers’ compensation claims.
Minnesota State Colleges and Universities may finance the construction, renovation, and acquisition of facilities
for student residences, student unions, and parking facilities through the sale of revenue bonds. These activities
are accounted for and reported in the Revenue Fund included herein. Details on the Revenue Fund bonds are
available in the separately audited and issued Revenue Fund financial report. Copies are available from the
Financial Reporting Director, Minnesota State Colleges and Universities, 30 7th St. E., Suite 350, St. Paul,
Minnesota 55101-7804
Unearned Revenue — Unearned revenue consists primarily of tuition received, but not yet earned, for summer
session. It also includes amounts received from grants which have not yet been earned under the terms of the
agreement.
Operating Activities — Operating activities as reported in the statements of revenues, expenses and changes in
net assets are those that generally result from exchange transactions such as payments received for providing
services and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded as
nonoperating revenues, including state appropriations, federal, state and private grants, and investment income.
Tuition, Fees, and Sales, Net — Tuition, fees, and sales are reported net of scholarship allowances. The
University does not conduct retail sales. See Note 11 for additional information.
Restricted Student Payments — Restricted student payments consist of fee revenue restricted for payment of
revenue bonds. See Note 11 for additional information.
Federal Grants — Metropolitan State University participates in several federal grant programs. The largest
programs include Pell, TRIO, Supplemental Educational Opportunity Grant, and Federal Work Study. Federal
Grant revenue is recognized as nonoperating revenue in accordance with GASB Statement No. 33, Accounting
and Financial Reporting for Nonexchange Transactions. During fiscal years 2011 and 2010, $1,386,018 and
$1,532,375 of federal aid was recognized as revenue related to the American Recovery and Reinvestment Act of
2009. Of this amount, $591,820 and $395,343, respectively, was used to mitigate tuition increases that would
have otherwise been necessary. Expenditures under government contracts are subject to review by the granting
authority. To the extent, if any, that such a review reduces expenditures allowable under these contracts, the
University will record such disallowance at the time the determination is made.
Reclassifications — Certain prior year amounts have been reclassified to conform to current year presentation.
These reclassifications had no effect on net assets previously reported. In fiscal year 2010 capital appropriation
revenue in the amount of $708,367 was reclassified as state appropriation revenue. Additionally, fiscal year
2010 restricted expendable net assets restrictions in the amount of $452,665 was reclassified to invested in
capital assets net of related debt.
Use of Estimates — To prepare the basic financial statements in conformity with generally accepted accounting
principles, management must make estimates and assumptions. These estimates and assumptions may affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The most significant areas that require the use of management’s
estimates relate to allowances for uncollectible accounts, scholarship allowances, workers’ compensation claims
and compensated absences
30
Net Assets — The difference between assets and liabilities is net assets. Net assets are further classified for
accounting and reporting purposes into the following three net asset categories:
• 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 expendable: Net assets subject to externally imposed stipulations. Net asset restrictions for
Metropolitan State University are as follows:
Restricted for bond covenants — revenue bond restrictions.
Restricted for other — includes restrictions for the following:
Capital projects — restricted for completion of capital projects.
Debt service — legally restricted for bond repayments.
Donations — restricted per donor requests.
Faculty contract obligations — faculty development and travel required by contracts.
Restricted for Other
(In Thousands)
2011
Debt service
$ 1,481
Donations
81
Faculty contract obligations
682
Total
$ 2,244
•
2.
2010
$ 1,636
101
548
$ 2,285
Unrestricted: Net assets that are not subject to externally imposed stipulations. Unrestricted net
assets may be designated for specific purposes by action of management, the System Office, or the
Board of Trustees.
CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash and Cash Equivalents — All balances related to the appropriation, tuition, and most fees are in the state
treasury. In addition, the University has a checking account in a local bank. The activities handled through the
local bank include financial aid, student payroll, auxiliary, and student activities.
Minnesota Statutes, Section 118A.03, requires that deposits be secured by depository insurance or a
combination of depository insurance and collateral securities held in the state’s name by an agent of the state.
This statute further requires that such insurance and collateral shall be at least 10 percent greater than the
amount on deposit.
Cash and cash equivalents are categorized to give an indication of the level of custodial credit risk. Category 1
includes cash and cash equivalents insured or collateralized with securities held by the state or its agent in
Minnesota State Colleges and Universities’ name. Category 3 includes uncollateralized cash and cash
equivalents. All the University’s cash and cash equivalents are classified as Category 1.
At June 30, 2011 and 2010, the University’s bank balance was $2,311,518 and $2,976,457 respectively. These
bank balances were adjusted by items in transit to arrive at the University’s cash in bank balance.
The University’s balance in the treasury, except for the Revenue Fund, is invested by the Minnesota State Board
of Investment as part of the state investment pool. This asset is reported as a cash equivalent.
31
The following table summarizes cash and cash equivalents:
Year Ended June 30
(In Thousands)
Carrying Amount
Cash, in bank
$
Cash, trustee account (US Bank)
Total local cash and cash equivalents
Total treasury cash accounts
Grand Total
$
2011
1,999
716
2,715
30,861
33,576
2010
2,154
903
3,057
25,378
$ 28,435
$
The cash accounts are invested in short term, liquid, high quality debt securities.
Investments — The Minnesota State Board of Investment manages the majority of the state’s investments. All
investments managed by the State Board of Investment are governed by Minnesota Statutes, Chapters 11A and
356A. Minnesota Statutes, Section 11A.24 broadly restricts investments to obligations and stocks of United
States and Canadian governments, their agencies and registered corporations, other international securities,
short term obligations of specified high quality, restricted participation as a limited partner in venture capital,
real estate, or resource equity investments, and the restricted participation in registered mutual funds.
Generally, when applicable, the statutes limit investments to those rated within the top four quality rating
categories of a nationally recognized rating agency. The statutes further prescribe the maximum percentage of
fund assets that may be invested in various asset classes and contain specific restrictions to ensure the quality of
the investments.
Within statutory parameters, the Minnesota State Board of Investment has established investment guidelines
and benchmarks for all funds under its management. These investment guidelines and benchmarks are tailored
to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation,
investment management structure, and specific performance standards.
At June 30, 2011 and 2010, Metropolitan State University held no debt securities.
Custodial Credit Risk — Custodial credit risk for investments is the risk that in the event of a failure of the
counterparty, the University will not be able to recover the value of the investments that are in the possession of
an outside party. Board procedure 7.5.1 requires compliance with Minnesota Statutes, Section 118A.03 and
further excludes the use of FDIC insurance when meeting collateral requirements.
Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The University’s policy for reducing its exposure to credit risk is to comply with Minnesota
Statutes, Section 118A.04. This statute limits investments to the top quality rating categories of a nationally
recognized rating agency.
Concentration of Credit Risk — Concentration of credit risk is the risk of loss attributed to the magnitude of a
government’s investment in a single issuer. The University’s policy for reducing this risk of loss is to comply
with Board procedure 7.5.1 which recommends investments be diversified by type and issuer.
Interest Rate Risk — Interest rate risk is the risk that changes in interest rates will adversely affect the fair value
of an investment. The University complies with Board procedure 7.5.1 that recommends considering
fluctuation interest rates and cash flow needs when purchasing short term and long term investments.
32
3.
ACCOUNTS RECEIVABLE
The accounts receivable balances are made up primarily of receivables from individuals. At June 30, 2011 and
2010, the total accounts receivable balances for the University were $2,180,609 and $2,499,428, respectively,
less an allowance for uncollectible receivables of $849,453 and $967,856, respectively.
Summary of Accounts Receivable at June 30
(In Thousands)
2011
2010
Tuition
$ 1,296 $ 1,568
Financial aid
392
379
Fees
97
127
Sales and services
68
107
Third party obligations
15
20
Other
312
299
Total accounts receivable
2,180
2,500
Less allowance for uncollectible accounts
(849)
(968)
Net accounts receivable
$ 1,331 $ 1,532
The allowance for uncollectible accounts has been computed based on the following aging schedule for fiscal
years 2011 and 2010:
Age
Less than 1 year
1 to 3 years
3 to 5 years
Over 5 years
Allowance
Percentage
15
45
70
95
4. PREPAID EXPENSE
Prepaid expense consists primarily of funds which have been deposited in the state’s Debt Service Fund for
future general obligation bond payments in the amounts of $1,032,112 and $1,186,046 for fiscal years 2011 and
2010, respectively. Minnesota Statutes, Section 16A.641, requires all state agencies to have on hand on
December 1 of each year, an amount sufficient to pay all general obligation bond principal and interest due, and
to become due, through July 1 of the second fiscal year. Also, included in prepaid expense for fiscal years 2011
and 2010 was $46,682 and $43,899, respectively, stemming from prepaid software maintenance agreements and
prepaid contractual support.
33
5. CAPITAL ASSETS
Summaries of changes in capital assets for fiscal years 2011 and 2010 follow:
Year Ended June 30, 2011
(In Thousands)
Beginning
Balance
Increases Decreases
Completed
Construction
Ending
Balance
Capital assets, not depreciated:
Land
$
Construction in progress
Total capital assets, not depreciated
3,322 $
13,972
17,294
Capital assets, depreciated:
Buildings and improvements
Equipment
Library collections
Total capital assets, depreciated
61,205
2,270
2,062
65,537
—
259
161
420
—
18
613
631
5,933
—
—
5,933
67,138
2,511
1,610
71,259
Less accumulated depreciation:
Buildings and improvements
Equipment
Library collections
Total accumulated depreciation
23,664
1,640
1,411
26,715
1,953
181
233
2,367
—
23
616
639
—
—
—
—
25,617
1,798
1,028
28,443
Total capital assets depreciated, net
Total capital assets, net
$
38,822
56,116 $
613 $
— $
5,473
13,434
6,086
13,434
(1,947)
(8)
4,139 $ 13,426 $
Year Ended June 30, 2010
(In Thousands)
Beginning
Balance
Increases
Capital assets, not depreciated:
Land
$
Construction in progress
Total capital assets, not depreciated
3,322 $
2,332
5,654
— $
12,518
12,518
Decreases
— $
—
—
— $
(5,933)
(5,933)
3,935
78
4,013
5,933
42,816
— $ 46,829
Completed
Construction
Ending
Balance
— $ 3,322
(878)
13,972
(878)
17,294
Capital assets, depreciated:
Buildings and improvements
Equipment
Library collections
Total capital assets, depreciated
60,327
2,306
2,170
64,803
—
165
174
339
—
201
282
483
878
—
—
878
61,205
2,270
2,062
65,537
Less accumulated depreciation:
Buildings and improvements
Equipment
Library collections
Total accumulated depreciation
21,821
1,655
1,398
24,874
1,843
161
295
2,299
—
176
282
458
—
—
—
—
23,664
1,640
1,411
26,715
Total capital assets depreciated, net
Total capital assets, net
$
39,929
45,583 $
34
(1,960)
10,558 $
25
25 $
878
38,822
— $ 56,116
6.
ACCOUNTS PAYABLE
Accounts payable represent amounts due at June 30, 2011 and 2010, for goods and services received prior to the
end of the fiscal year.
Summary of Accounts Payable at June 30
(In Thousands)
2011
2010
Purchased services
$ 499 $ 265
Interagency agreements
32
31
Capital assets
89
40
Supplies
103
25
Financial aid
33
16
Other payables
553
210
Total accounts payable $ 1,309 $ 587
In addition, as of June 30, 2011 and 2010, the University had payable from restricted assets in the amounts of
$532,212 and $1,356,086, respectively, which were related to capital projects financed by general obligation
bonds.
7.
LONG TERM OBLIGATIONS
Summaries of amounts that are due within one year are reported in the current liability section of the statements
of net assets.
The changes in long term debt for fiscal years 2011 and 2010 are as follows:
Year Ended June 30, 2011
(In Thousands)
Beginning
Balance
Increases
Decreases
Liabilities for:
Bond premium
General obligation bonds
Revenue bonds
Total long term debt
$
489
10,776
4,215
$ 15,480
$
605
1,647
—
$ 2,252
$
$
217
4,956
231
5,404
Ending
Balance
$
877
7,467
3,984
$ 12,328
Year Ended June 30, 2010
(In Thousands)
Beginning
Balance
Increases
Decreases
Liabilities for:
Bond premium
General obligation bonds
Revenue bonds
Total long term debt
$
397
7,481
4,433
$ 12,311
$
149
4,060

$ 4,209
35
$
$
57
765
218
1,040
Current
Portion
$
$
Ending
Balance
$
489
10,776
4,215
$ 15,480
—
758
243
1,001
Current
Portion

890
231
$ 1,121
$
The changes in other compensation benefits for fiscal years 2011 and 2010 follow:
Year Ended June 30, 2011
(In Thousands)
Beginning
Balance
Increases
Liabilities for:
Compensated absences
Early termination benefits
Net other postemployment benefits
Workers’ compensation
Total other compensation benefits
$
$
4,117
86
645
284
5,132
$
611
—
345
283
$ 1,239
Decreases
$
$
Year Ended June 30, 2010
(In Thousands)
Beginning
Balance
Increases
Liabilities for:
Compensated absences
Early termination benefits
Net other postemployment benefits
Workers’ compensation
Total other compensation benefits
$
$
4,073
208
493
263
5,037
$
$
321
86
265
205
877
413
86
101
158
758
Decreases
$
$
277
208
113
184
782
Ending
Balance
$ 4,315
—
889
409
$ 5,613
Current
Portion
$
$
Ending
Balance
$ 4,117
86
645
284
$ 5,132
475
—
—
180
655
Current
Portion
$
$
412
86

119
617
Bond Premium — Bonds were issued in fiscal years 2011 and 2010 resulting in premiums of $604,951 and
$149,159, respectively. Amortization is calculated using the straight-line method and amortized over the
remaining average life of the bonds.
General Obligation Bonds— The state of Minnesota sells general obligation bonds to finance most of
Minnesota State Colleges and Universities’ capital projects. The interest rate on these bonds ranges from
2 to 5.5 percent. Minnesota State Colleges and Universities is responsible for paying one third of the debt
service for certain general obligation bonds sold for capital projects, as specified in the authorizing legislation.
This debt obligation is allocated to the colleges and universities based upon the specific projects funded. The
general obligation bonds liability included in these financial statements represents the University’s share.
Revenue Bonds — The Revenue Fund is authorized by Minnesota Statutes, Section 136F.98 to issue revenue
bonds whose aggregate principal shall not exceed $300,000,000 at any time. The proceeds of these bonds are
used to finance the acquisition, construction and remodeling of buildings for dormitory, residence hall, food
service, student union, and other revenue producing and related facilities at the state universities. Revenue
funds currently outstanding have interest rates of 4.25 percent to 6.5 percent.
The revenue bonds are payable solely from, and collateralized by, an irrevocable pledge of revenues to be
derived from the operation of the financed buildings and from student fees. These revenue bonds are payable
through 2023. Annual principal and interest payments on the bonds are expected to require less than 32.83
percent of net revenues. The total principal and interest remaining to be paid on the bonds is $5,445,475.
Principal and interest paid for the current year and total customer net revenues were $449,862 and $1,384,870,
respectively.
Compensated Absences — University employees accrue vacation leave, sick leave, and compensatory leave at
various rates within limits specified in the collective bargaining agreements. The liability for compensated
absences is payable as severance pay under specific conditions. This leave is liquidated only at the time of
termination from state employment.
36
Early Termination Benefits — Early termination benefits are benefits received for discontinuing services earlier
than planned. See Note 8 for additional information.
Net Other Postemployment Benefits — Other postemployment benefits are health insurance benefits for certain
retired employees under a single employer fully insured plan. Under the health benefits program retirees are
required to pay 100 percent of the total premium cost. Since the premium is a blended rate determined on the
entire active and retiree population, the retirees are receiving an implicit rate subsidy. See Note 9 for further
details.
Workers’ Compensation — The state of Minnesota Department of Management and Budget manages the self
insured workers’ compensations claims activities. The reported liability for workers’ compensation of
$409,135 and $283,887 at June 30, 2011 and 2010, respectively, is based on claims filed for injuries to state
employees occurring prior to the fiscal year end and is an undiscounted estimate of future payments.
Principal and interest payment schedules are provided in the following table for general obligation and revenue
bonds. There are no payment schedules for compensated absences, early termination benefits, net other
postemployment benefits, or workers’ compensation.
Long Term Debt Repayment Schedule
(In Thousands)
Fiscal Years
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
Total
8.
Revenue Bonds
Principal
Interest
$
243
$ 211
256
198
270
184
285
170
300
154
1,771
496
859
49
—
—
$ 3,984
$ 1,462
General
Obligation Bonds
Principal
Interest
$
758
$ 335
696
305
696
272
636
240
603
209
2,392
653
1,247
190
439
39
$ 7,467
$ 2,243
EARLY TERMINATION BENEFITS
Early termination benefits are defined as benefits received for discontinuing services earlier than planned.
The Inter Faculty Organization (IFO) contract provides for this benefit. The following is a description of the
benefit arrangements, including number of retired faculty receiving the benefit, and the amount of future
liability as of the end of fiscal years 2011 and 2010.
Inter Faculty Organization (IFO) contract
The IFO contract allows faculty members who meet certain eligibility and combination of age and years of
service requirements to receive an early retirement incentive cash payment based on base salary at time of
separation, as well as an amount equal to the employer’s contribution for one year’s health insurance premiums
deposited in his/her health care savings plan at time of separation. The cash incentive can be paid either in one
or two payments.
37
The number of retired faculty who received this benefit and the amount of future liability for those faculty, as of
the end of fiscal years 2011 and 2010, follow:
Fiscal Year
2011
2010
9.
Number of Faculty
—
3
Future Liability
(In Thousands)
$ —
86
NET OTHER POSTEMPLOYMENT BENEFITS
The University provides health insurance benefits for certain retired employees under a single employer fully
insured plan, as required by Minnesota Statute 471.61 Subdivision 2B. Active employees who retire when
eligible to receive a retirement benefit from a Minnesota public pension plan and do not participate in any other
health benefits program providing coverage similar to that herein described, will be eligible to continue
coverage with respect to both themselves and their eligible dependent(s) under the health benefits program.
Retirees are required to pay 100 percent of the total premium cost. Since the premium is a blended rate
determined on the entire active and retiree population, the retirees are receiving an implicit rate subsidy. As of
July 1, 2010, there were approximately 7 retirees receiving health benefits from the health plan.
Annual OPEB Cost and Net OPEB Obligation — The annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting
by Employers for Post Employment Benefits Other Than Pensions. The ARC represents a level of funding that,
if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years.
The following table shows the components of the annual OPEB cost for 2011 and 2010, the amount actually
contributed to the plan, and changes in the net OPEB obligation:
Components of the Annual OPEB Cost
(In Thousands)
2011
2010
Annual required contribution (ARC)
$ 339
$ 261
Interest on net OPEB obligation
31
23
Adjustment to ARC
(25)
(19)
Annual OPEB cost
345
265
Contributions during the year
(101)
(113)
Increase in net OPEB obligation
244
152
Net OPEB obligation, beginning of year
645
493
Net OPEB obligation, end of year
$ 889
$ 645
38
The University’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for fiscal years 2011 and 2010 were as follows:
For Year Ended June 30
(In Thousands)
2011
Beginning of year net OPEB obligation
645
$
Annual OPEB cost
345
Employer contribution
(101)
End of year net OPEB obligation
889
$
Percentage contributed
29.28%
$
$
2010
493
265
(113)
645
42.64%
Funding Status — There are currently no assets that have been irrevocably deposited in a trust for future health
benefits. Therefore, the actuarial value of assets is zero.
Actuarial
Valuation
Date
July 1, 2010
Actuarial
Value
of Assets
(a)
—
(In Thousands)
Actuarial
Unfunded
Accrued
Actuarial Accrued
Liability
Liability
(b)
(b - a)
$ 2,709
$
2,709
Funded
Covered
Ratio
Payroll
(a/b)
(c)
0.00% $ 35,364
UAAL as a
Percentage of
Covered Payroll
((b - a)/c)
7.66%
Actuarial Methods and Assumptions — Actuarial valuations involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding
the funded status of the plan and the annual required contributions of the employer are subject to continual
revision as actual results are compared with past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short term
volatility in actuarial accrued liabilities, consistent with the long term perspective of the calculations.
In the July 1, 2010 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial
assumptions included a 4.75 percent discount rate, which is based on the estimated long term investment yield
on the general assets, using an underlying long term inflation assumption of 3 percent. The annual healthcare
cost trend rate is 6.25 percent initially, reduced incrementally to an ultimate rate of 5 percent after twenty years.
The unfunded actuarial accrued liability is being amortized as a level dollar amount over an open 30 year
period.
10. LEASE AGREEMENTS
Operating Leases — The University is committed under various leases primarily for building space. These
leases are considered for accounting purposes to be operating leases. Lease expenses for the years ended
June 30, 2011 and 2010, totaled $1,229,887 and $1,152,179 for fiscal years 2011 and 2010, respectively.
Metropolitan State University’s Minneapolis campus is co-located with Minneapolis Community and Technical
College (MCTC). The University has an agreement with MCTC to reimburse MCTC for a share of facilities
expenses. The University has also extended and increased leased space for the Midway Campus through
July 30, 2013.
39
The University has an operating agreement with Hennepin Technical College (HTC) to lease space at the Law
Enforcement and Criminal Justice Education Center, located on the campus of HTC. The agreement allocates
operating expenses between the University and HTC based on square footage allocated to each institution. The
operating agreement is effective until July 1, 2015.
Future minimum lease payments are as follows:
Year Ended June 30
(In Thousands)
Year
Amount
2012 $ 1,239
2013
1,242
2014
104
Total $ 2,585
Income Leases — Metropolitan State has an income lease with the Saint Paul Public Library Dayton’s Bluff
Branch that commenced on July 1, 2004 and continues through June 30, 2014.
The University has an income lease with Verizon for a lease for cell phone tower located on campus. The
current lease commenced February 6, 2004 and continues through February 5, 2014.
Future expected income receipts for existing lease agreements are as follows:
Year Ended June 30
(In Thousands)
Year
Amount
2012 $ 105
2013
110
2014
101
Total $ 316
11. TUITION, FEES, AND SALES, NET
The following tables provide information related to tuition, fees, and sales revenue:
Description
Tuition
Fees
Sales
Restricted student payments
Total
For the Year Ended June 30
(In Thousands)
2011
Scholarship
Gross
Allowance
Net
$ 36,984 $ (10,712) $ 26,272
2,193
(315)
1,878
972
—
972
1,376
—
1,376
$ 41,525 $ (11,027) $ 30,498
40
$
$
Gross
33,054
1,999
903
1,385
37,341
2010
Scholarship
Allowance
$
(8,199) $
(261)
—
—
$
(8,460) $
Net
24,855
1,738
903
1,385
28,881
12. OPERATING EXPENSES BY FUNCTIONAL CLASSIFICATION
The following tables provide information related to operating expenses by functional classification:
For the Year Ended June 30, 2011
(In Thousands)
Description
Academic support
Institutional support
Instruction
Public service
Research
Student services
Auxiliary enterprises
Scholarships & fellowships
Less interest expense
Total operating expenses
Salaries
10,096
3,864
16,691
47
880
3,915
218
—
—
$ 35,711
$
Benefits
3,185
1,175
4,122
12
164
1,114
346
—
—
$
10,118
$
$
$
Other
4,459
4,356
5,284
20
412
1,929
970
1,820
—
19,250
$
$
Interest
153
58
239
1
12
58
6
—
(527)
—
$
$
Total
17,893
9,453
26,336
80
1,468
7,016
1,540
1,820
(527)
65,079
For the Year Ended June 30, 2010
(In Thousands)
Description
Academic support
Institutional support
Instruction
Public service
Research
Student services
Auxiliary enterprises
Scholarships & fellowships
Less interest expense
Total operating expenses
Salaries
9,628
3,634
16,180
4
681
3,666
228
—
—
$ 34,021
$
Benefits
3,001
1,365
3,996
1
194
955
82
—
—
$
9,594
$
$
$
Other
4,635
4,335
6,296
28
350
1,714
776
2,092
—
20,226
$
$
Interest
180
71
290
—
12
66
4
—
(623)
—
$
$
Total
17,444
9,405
26,762
33
1,237
6,401
1,090
2,092
(623)
63,841
13. EMPLOYEE PENSION PLANS
Metropolitan State University participates in three retirement plans: the State Employees Retirement Fund,
administered by the Minnesota State Retirement System; the Teachers Retirement Fund, administered by the
Teachers Retirement Association; and the Minnesota State Colleges and Universities Defined Contribution
Retirement Plan.
State Employees Retirement Fund (SERF)
Pension fund information is provided by the Minnesota State Retirement System, which prepares and publishes
its own stand alone comprehensive annual financial report, including financial statements and required
supplementary information. Copies of the report may be obtained directly from Minnesota State Retirement
System at 60 Empire Drive, Suite 300, St. Paul, Minnesota 55103-3000.
The SERF is a cost sharing, multiple employer defined benefit plan. All classified employees are covered by
this plan. A classified employee is one who serves in a civil service position. Normal retirement age is 65. The
annuity formula is the greater of a step rate with a flat rate reduction for each month of early retirement, or a
level rate (the higher step rate) with an actuarial reduction for early retirement. The applicable rates for each
year of allowable service are 1.2 percent and 1.7 percent of the members’ average salary, which is defined as
the highest salary paid in five successive years of service. Minnesota State Colleges and Universities, as an
employer for some participants, is liable for a portion of any unfunded accrued liability of this fund.
41
The statutory authority for SERF is Minnesota Statutes, Chapter 352. For fiscal year 2009 the funding
requirement for both employer and employee was 4.5 percent. For fiscal year 2010 the funding requirement
was 4.75 percent for both employer and employee. For fiscal year 2011 the funding requirement was 5 percent
for both employer and employee. Actual contributions were 100 percent of required contributions.
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year Amount
2011
$ 372
2010
321
2009
308
Teachers Retirement Fund (TRF)
Pension fund information is provided by the Minnesota Teachers Retirement Association, which prepares and
publishes its own stand alone comprehensive annual financial report, including financial statements and
required supplementary information. Copies of the report may be obtained directly from Minnesota Teachers
Retirement Association at 60 Empire Drive, Suite 400, St. Paul, Minnesota 55103-3000.
The TRF is a cost sharing, multiple employer defined benefit plan. Teachers and other related professionals
may participate in TRF. Normal retirement age is 65. Coordinated membership includes those who are covered
by the Social Security Act. The annuity formula is the greater of a step rate with a flat reduction for each month
of early retirement, or a level rate (the higher step rate) with an actuarially based reduction for early retirement.
The applicable rates for coordinated members are 1.2 percent and 1.7 percent for service rendered before
July 1, 2006, and 1.4 percent and 1.9 percent for service rendered on or after July 1, 2006. Minnesota State
Colleges and Universities, as an employer for some participants, are liable for a portion of any unfunded
accrued liability of this fund.
The statutory authority for TRF is Minnesota Statutes, Chapter 354. For fiscal years 2009, 2010 and 2011 the
funding requirement was 5.5 percent for both employer and employee coordinated members. Beginning July 1,
2011, both employee and employer contribution rate increases will be phased in with a 0.5 percent increase,
occurring every July 1 over four years, until it reaches a contribution rate of 7.5 percent on July 1, 2014. Actual
contributions were 100 percent of required contributions.
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year
Amount
2011
$ 241
2010
256
2009
251
Minnesota State Colleges and Universities Defined Contribution Retirement Fund
General Information — The Minnesota State Colleges and Universities Defined Contribution Retirement Fund
includes two plans: an Individual Retirement Account Plan and a Supplemental Retirement Plan. Both plans
are mandatory, tax deferred, single employer defined contribution plans authorized by Minnesota Statutes,
Chapters 354B and 354C. The plans are designed to provide retirement benefits to Minnesota State Colleges
and Universities unclassified employees. An unclassified employee is one who belongs to Minnesota State
Colleges and Universities specific bargaining units. The plans cover unclassified teachers, librarians,
administrators, and certain other staff. The plans are mandatory for qualified employees and vesting occurs
immediately.
42
The administrative agent of the two plans is Teachers Insurance and Annuity Association College Retirement
Equities Fund (TIAA-CREF). Separately issued financial statements can be obtained from TIAA-CREF,
Normandale Lake Office Park, 8000 Norman Center Drive, Suite 1100, Bloomington, MN 55437
Individual Retirement Account Plan (IRAP)
Participation — Every employee who is in unclassified service is required to participate in TRF or IRAP upon
achieving eligibility. An unclassified employee is one who serves in a position deemed unclassified according
to Minnesota Statutes. This includes presidents, vice presidents, deans, administrative or service faculty,
teachers, and other managers and professionals in academic and academic support programs. Eligibility begins
with the employment contract for the first year of unclassified service in which the employee is hired for more
than 25 percent of a full academic year, excluding summer session. An employee remains a participant of the
plan, even if employed for less than 25 percent of a full academic year in subsequent years.
Contributions — There are two member groups participating in the IRAP: a faculty group and an administrators
group. For both faculty and administrators, the employer and employee statutory contribution rates are
6 percent and 4.5 percent, respectively. Contributions are made under the authority of Minnesota Statutes,
Chapter 354B.
Required contributions for Metropolitan State University were:
Fiscal Year
2011
2010
2009
(In Thousands)
Employer
Employee
$ 1,168 $
873
1,094
813
1,096
815
Supplemental Retirement Plan (SRP)
Participation — Every unclassified employee who has completed two full time years of unclassified service
with Minnesota State Colleges and Universities must participate upon achieving eligibility. The eligible
employee is enrolled on the first day of the fiscal year following completion of two full time years. Vesting
occurs immediately and normal retirement age is 55.
Contributions — Participants contribute to the SRP portion of the plan 5 percent of the eligible compensation
up to a defined maximum annual contribution as specified in the following table:
Member Group
Inter Faculty Organization
Minnesota State University Association of Administrative and Service Faculty
Administrators
Eligible
Compensation
$6,000 to $51,000
6,000 to 50,000
6,000 to 60,000
Annual
Maximum
$2,250
2,200
2,700
The University matches amounts equal to the contributions made by participants. The contributions are made
under the authority of Minnesota Statutes, Chapter 354C.
43
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year Amount
2011
$ 509
2010
491
2009
418
14. SEGMENT INFORMATION
A segment is an identifiable activity reported as a stand-alone entity for which one or more revenue bonds are
outstanding. A segment has a specific identifiable revenue stream pledged in support of revenue bonds and has
related expenses, gains and losses, assets, and liabilities that are required by an external party to be accounted
for separately. Minnesota State Colleges and Universities issues revenue bonds to finance the University
parking ramp.
Metropolitan State University Portion of the Revenue Fund
(In Thousands)
2011
2010
733 $
913
4,631
6,277
796
914
4,782
6,492
328
3,766
4,094
339
4,004
4,343
1,100
1,083
2,183 $
1,020
1,129
2,149
$
1,376 $
(1,133)
243
(209)
34
2,149
2,183 $
1,385
(905)
480
(204)
276
1,873
2,149
CONDENSED STATEMENTS OF CASH FLOWS
Net cash provided (used) by
Operating activities
$
Investing activities
Capital and related financing activities
Net increase (decrease) in cash
Cash, beginning of year
Cash, end of year
$
400 $
7
(448)
(41)
1,659
1,618 $
361
23
(444)
(60)
1,719
1,659
CONDENSED STATEMENTS OF NET ASSETS
Assets
Current assets
Restricted assets
Noncurrent assets
Total assets
Liabilities
Current liabilities
Noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debt
Restricted
Total net assets
CONDENSED STATEMENTS OF REVENUES,
EXPENSES, AND CHANGES IN NET ASSETS
Operating revenues
Operating expenses
Net operating income
Nonoperating revenues (expenses)
Change in net assets
Net assets, beginning of year
Net assets, end of year
44
$
$
$
15. RELATED PARTY TRANSACTIONS
The Metropolitan State University’s Minneapolis campus is co-located with Minneapolis Community and
Technical College (MCTC) and shares physical plant, institutional and academic support, and student services
cost. The University and MCTC have an agreement to share costs using relevant cost bases. This agreement
articulates a cost allocation methodology which ensures that equitable and complete costs are absorbed by both
schools. In fiscal years 2011 and 2010, the University’s shared cost expense was $539,997 and $593,097,
respectively. The University recorded $238,656 and $0 in shared costs payable to MCTC at June 30, 2011 and
2010, respectively.
The University leases space from Hennepin Technical College (HTC) in the Law Enforcement and Criminal
Justice Education Center, a partnership between the University, Minneapolis Community and Technical
College, and HTC. As of July 1, 2010, ownership of the building was transferred to HTC, and the University
and HTC executed an operating agreement to share costs based on each institution’s share of the usable square
footage of the building. The University recorded $226,725 in shared costs payable to HTC at June 30, 2011.
The University also recorded shared costs receivable from HTC of $93,062 at June 30, 2011, for reimbursable
information technology services.
16. COMMITMENTS
During fiscal year 2011, the University completed construction on the Law Enforcement and Criminal Justice
Education Center, located on the campus of Hennepin Technical College. As of July 1, 2010, ownership of the
building was transferred to Hennepin Technical College. Total cost of the project was $15.6 million, of which
$14,959,709 had been expended as of the end of fiscal year 2011. As of June 30, 2011, the University had
$177,958 in remaining obligations for the building project.
During fiscal year 2011, construction continued for the Smart Classroom project on the St. Paul campus. Total
cost of the project was $5.9 million, of which $4,455,877 had been expended as of the end of fiscal year 2011.
Residual commitments for the project total $406,777.
In fiscal year 2011, the University received bond funds for design of the Science Education Center on the St.
Paul campus. Total cost of the project is $3.5 million, and as of June 30, 2011 nothing has been spent. Residual
commitments to the University total $3,521,550.
17. RISK MANAGEMENT
Minnesota State Colleges and Universities is exposed to various risks of loss related to tort; theft of, damage to,
or destruction of assets; error or omissions; and employer obligations. Minnesota State Colleges and
Universities manages these risks through state of Minnesota insurance plans including the state of Minnesota
Risk Management Fund, a self insurance fund, and through purchased insurance coverage.
Automobile liability coverage is required by the state and is provided by the Minnesota Risk Management
Fund. The University also purchases optional physical damage coverage for their newest or most expensive
vehicles. Property coverage offered by the Minnesota Risk Management Fund is as follows:
Coverage
Amount
Institution deductible
Fund responsibility
Primary reinsurer coverage
Multiple reinsurers’ coverage
Bodily injury and property damage per person
Bodily injury and property damage per occurrence
Annual maximum paid by fund, excess by reinsurer
Maintenance deductible for additional claims
45
$25,000
Deductible to $1,000,000
$1,500,001 to $12,000,000
$12,000,001 to $500,000,000
$500,000
$1,500,000
$4,000,000
$25,000
Metropolitan State University retains the risk of loss and did not have any settlements in excess of coverage in
the last three years.
The Minnesota Risk Management Fund purchased student intern professional liability insurance on the open
market for the University.
Student intern professional liability per occurrence
Student intern professional liability annual aggregate
$1,000,000
$5,000,000
Minnesota State Colleges and Universities participate in the State Employee Group Insurance Plan, which
provides life insurance and hospital, medical, and dental benefits coverage through provider organizations.
Workers’ compensation is covered through state participation in the Workers’ Compensation Reinsurance
Association, which pays for catastrophic workers’ compensation claims. Other workers’ compensation risks are
covered through self insurance for which Minnesota State Colleges and Universities pays the cost of claims
through the state Workers’ Compensation Fund. A Minnesota State Colleges and Universities workers’
compensation payment pool helps institutions manage the volatility of such claims. Annual premiums are
assessed by the pool based on salary dollars and claims history. From this pool all workers’ compensation
claims are paid to the state Workers’ Compensation Fund.
The following table presents changes in the balances of workers' compensation liability during the fiscal years
ended June 30, 2011 and 2010.
(In Thousands)
Fiscal Years Ended
June 30, 2011
June 30, 2010
Beginning
Liability
$ 284
263
Additions
$ 283
205
Payments
& Other
Reductions
$ 158
184
Ending
Liability
$ 409
284
18. COMPONENT UNITS
In accordance with GASB Statement No. 39, Determining Whether Certain Organizations Are Component
Units, the following foundation affiliated with Metropolitan State University is a legally separate, tax exempt
entity and reported as a component unit.
The Metropolitan State University Foundation is a separate legal entity formed for the purpose of obtaining and
disbursing funds for the sole benefit of the University. The University does not appoint any members of the
board and the resources held by the Foundation can only be used by, or for, the benefit of the University.
The Foundation’s relationship with the institution is such that exclusion of the Foundation’s financial statements
would cause the University financial statements to be misleading or incomplete. The Foundation is considered a
component unit of the University and their statements are discretely presented in the University’s financial
statements.
The Foundation’s financial statements have been prepared on the accrual basis of accounting in accordance with
generally accepted accounting principles as prescribed by the FASB Accounting Standards Codification (ASC)
958-205, Presentation of Financial Statements. Net assets, which are classified on the existence or absence of
donor imposed restrictions, are classified and reported according to the following classes:
•
•
•
Unrestricted Net Assets: Net assets that are not subject to donor imposed stipulations.
Temporarily Restricted Net Assets: Net assets subject to donor imposed restrictions as to how the
assets will be used.
Permanently Restricted Net Assets: Net assets subject to donor imposed stipulations that they be
maintained permanently by each foundation. Generally, the donors of these assets permit the
foundation to use all or part of the income earned on any related investments for general or
specific purposes.
46
The University received $287,787 and $168,667 in fiscal years 2011 and 2010, respectively, from the
Foundation for scholarships. In addition, the University received $399,518 and $523,788 for program support
for the fiscal years ended June 30, 2011 and 2010, respectively. The University pays the salaries and benefits of
certain individuals providing services to the Foundation. The estimated value of these salaries and benefits was
$558,560 and $576,669 for the fiscal years ended June 30, 2011 and 2010, respectively.
Investments —The Foundation’s investments are presented in accordance with FASB ASC 958-320,
Investments-Debt and Equity Securities. Under ASC 958-320, investments in marketable securities with readily
determinable fair values and all investments in debt securities are reported at their fair values in the statements
of financial position.
Schedule of Investments at June 30
(In Thousands)
Investments
2011
Money market & certificate of deposit
$
824
Fixed income/bonds/US treasuries
694
Balanced mutual funds
1,138
Equity based mutual funds
642
Equity securities
—
Alternative investments
65
Total investments
$
3,363
$
$
2010
799
515
612
790
7
54
2,777
Endowment Funds— The Foundation’s endowment includes both donor-restricted funds and funds designated
by the Foundation Board of Trustees to function as endowments. As required by generally accepted accounting
principles, net assets associated with endowment funds, including funds designated by the Board of Trustees to
function as endowments, are classified and reported based on the existence or absence of donor-imposed
restrictions.
Changes in endowment net assets as of June 30, 2011 are as follows:
Schedule of Endowment Net Assets
As of June 30, 2011
(In Thousands)
Net assets, beginning of year
Change in value of trusts
Amounts appropriated for expenditures
Other transfers
Net assets, end of year
Temporarily
Unrestricted
Restricted
$
(21) $
270
—
296
—
(76)
16
(16)
$
(5) $
474
47
Total Net
Permanently
Endowment
Restricted
Assets
$
2,356 $
2,605
55
351
—
(76)
(1)
(1)
$
2,410 $
2,879
Changes in endowment net assets as of June 30, 2010 are as follows:
Schedule of Endowment Net Assets
As of June 30, 2010
(In Thousands)
Net assets, beginning of year
Change in value of trusts
Contributions
Amounts appropriated for expenditures
Other transfers
Net assets, end of year
Temporarily
Unrestricted
Restricted
$
(41) $
157
—
194
—
—
—
(46)
20
(35)
$
(21) $
270
Total Net
Permanently
Endowment
Restricted
Assets
$
2,295 $
2,411
—
194
61
61
—
(46)
—
(15)
$
2,356 $
2,605
Restatement of Financial Statements — Subsequent to the issuance of the Foundation’s June 30, 2010 financial
statements, the Foundation determined that contribution revenue and pledges receivable were understated by
$63,332, with respect to a conditional pledge that had been earned in 2010.
Reclassifications — Certain reclassifications have been made in the financial statements for the year ended June
30, 2010, to conform to the classifications used for the year ended June 30, 2011.
19. SUBSEQUENT EVENTS
On June 28, 2011, the University and Minneapolis Community and Technical College (MCTC) executed an
amendment to the operating agreement, which transferred ownership of the Minneapolis parking ramp from the
University to MCTC as of July 1, 2011. The parking ramp was a Revenue Fund project, and will result in
reduction to the University’s total assets of $6.3 million, reduction in total liabilities of $4.1 million, and
reduction in total net assets of $2.2 million.
48
REQUIRED SUPPLEMENTARY
INFORMATION SECTION
49
This page intentionally left blank
50
METROPOLITAN STATE UNIVERSITY
SCHEDULE OF FUNDING PROGRESS FOR NET OTHER POSTEMPLOYMENT BENEFITS
Actuarial
Valuation
Date
July 1, 2006
July 1, 2008
July 1, 2010
Actuarial
Value of
Assets
(a)
—
—
—
Schedule of Funding Progress
(In Thousands)
Actuarial
Unfunded
Accrued Actuarial Accrued Funded
Liability
Liability
Ratio
(b)
(b - a)
(a/b)
$ 3,245
$ 3,245
0.00%
2,323
2,323
0.00
2,709
2,709
0.00
51
Covered
Payroll
(c)
$ 29,010
29,905
35,364
UAAL as a
Percentage of
Covered Payroll
((b - a)/c)
11.19%
7.77
7.66
This page intentionally left blank
52
SUPPLEMENTARY SECTION
53
54
55
This page intentionally left blank
56