• TABLE OF CONTENTS
HIDE
 Front Cover
 Acknowledgement
 Table of Contents
 A message from the president
 Introduction from the vice president...
 University of Florida overview
 Financial statements
 Financial aid administered
 Back Matter
 Back Cover






Group Title: University of Florida Annual Financial Report. 2000-2001.
Title: University of Florida Annual Financial Report. 2003-2004.
ALL VOLUMES CITATION PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00072278/00005
 Material Information
Title: University of Florida Annual Financial Report. 2003-2004.
Series Title: University of Florida Annual Financial Report
Physical Description: Serial
Language: English
Creator: Finance and Accounting Division, University of Florida
Affiliation: University of Florida -- Office of Administrative Affairs -- Finance and Accounting Division
Publisher: Office of Administrative Affairs, University of Florida
Publication Date: 2004
 Subjects
Subject: University of Florida.   ( lcsh )
Spatial Coverage: North America -- United States of America -- Florida
 Record Information
Bibliographic ID: UF00072278
Volume ID: VID00005
Source Institution: University of Florida
Holding Location: George A. Smathers Libraries, University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida

Table of Contents
    Front Cover
        Front cover
    Acknowledgement
        Acknowledgement
    Table of Contents
        Page 1
    A message from the president
        Page 2
    Introduction from the vice president for Finance and Accounting
        Page 3
        Page 4
    University of Florida overview
        Page 5
        Mission
            Page 5
        History
            Page 5
        Facilities
            Page 6
            Page 7
            Page 8
        Programs
            Page 9 (MULTIPLE)
            Page 10
        Faculty
            Page 11
        Sports and recreational activities
            Page 12
        An outstanding value
            Page 13
    Financial statements
        Page 14
        Management's discussion and analysis
            Page 15
        Statement of net assets
            Page 16
        Statement of revenue, expenses, and changes in net assets
            Page 17
        Statement of cash flows
            Page 18
            Page 19
            Page 20
            Page 21
            Page 22
        Notes to the financial statements
            Page 23
            Page 24
            Page 25
            Page 26
            Page 27
            Page 28
            Page 29
            Page 30
            Page 31
            Page 32
            Page 33
            Page 34
            Page 35
            Page 36
            Page 37
            Page 38
            Page 39
            Page 40
            Page 41
            Page 42
            Page 43
    Financial aid administered
        Page 44
    Back Matter
        Back matter
    Back Cover
        Back cover
Full Text





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ANNUAL FINANCIAL REPORT 2003-04










University of Florida

Annual Financial Report 2003-04


Uiniverskir of Floiida Board of T ustees

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A Message from the President 2
Introduction from theVice President for Finance and Administration 3
University of Florida Overview 4
Mission, History and Facilities
Programs, Students and Faculty
Sports and Recreational Activities
An OutstandingValue
Financial Statements
Report of Independent Auditors 14
Management's Discussion and Analysis 15
Statement of Net Assets 20
Statement of Revenues, Expenses, and Changes in NetAssets 2
Statement of Cash Flows 22
Notes to the Financial Statements 23
Financial Aid Administered 44





ANNUAL FINANCIAL REPORT 2003-04


A Message

from the

President


he University of Florida provides an exceptional level of education,
complemented by a commitment to research and enlightened service to
its communities.
This report chronicles many of the successes and highlights the financial stability of
Florida's flagship university. Just in the last 15 years, the university has significantly changed.
In 1989, UF had 33-thousand students of whom more than one-half were male and 14
percent were minorities. Today, UF is host to nearly 48-thousand students of whom 54
percent are female and approximately 25 percent are minorities. Over the years, UF has
improved its ability to attract outstanding students. In 1988, UF ranked 12th in the country
for newly enrolled National Merit Scholars and 31"t for National Achievement Scholars.
Today, UF ranks first for all public universities for enrolling National Merit Scholars and
ranks first for public institutions for landing National Achievement Scholars. Further, UF has
improved significantly in retaining these students, with its freshmen retention rate being one
of the highest in the country.
Our faculty and staff have significantly increased UF's research capabilities. This past
year, UF attracted more than $475 million in research and training grants, a figure that has
increased steadily. Overall, UF has grown from an $800 million operating budget in 1989 to
a $2 billion enterprise in 2004.
The success story of the University of Florida was not inevitable. It is instead a tribute
to all who are associated with the university. The path towards discovery will forever have
challenges, but it is a journey that has earned the total commitment of the University
of Florida.


/6^/^4


flagshipidiscovery





















Introduction

from the Vice

President for

Finance and

Administration


Sam pleased to present the University of Florida Annual Financial Report for 2003-
2004. Our annual financial report provides a broad understanding of the University's
mission and presents fairly its financial position and activities. This report reflects the
continued commitment of UF's Finance and Administration to document the growth and
stability of the University of Florida. By meeting that requirement, we have received an
unqualified opinion on our financial statements from the State of Florida Auditor General.
Please see the Management's Discussion and Analysis later in this report for a more detailed
discussion of the University's financial status.
The University has continued the devolution of higher education from the State and
on July 1, 2004, implemented its enterprise systems with new personnel, payroll, purchasing
and accounting systems, known collectively as the UF Bridges project. The implementation
and stabilization of this project has required the continued commitment of significant
resources and the dedication of the entire UF staff and faculty. The new administrative
systems provide our employees with a common interface and process for the expenditure of
all University funds, regardless of source. This commonality has enabled the University to
adopt best practices for procurement, disbursement, and processing that will serve the
campus for many years.
The University of Florida continues to maintain a strong financial position commen-
surate with our national standing in academics and research. I am confident that the
University will continue to maintain and build the resources necessary to provide the citizens
of Florida and our students a dynamic responsive higher education institution. Our faculty
and staff are engaged with the change in governance and implementation of the enterprise
systems. With their help, the University of Florida will take advantage of all opportunities
for further success and will meet the challenges of the future with vigor and creativity.


A COMPONENT UNIT OF THE STATE OF FLORIDA


























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teaching

research
service

















verview


Mission
Through both the tradition of American liberal arts
higher education and the mandate of the people of Florida,
the University of Florida is organizationally committed to its
mission of teaching, research and service. Each of the three
pillars of its mission is addressed by a faculty and staff who
have designed curricula and support programs that meet not
only the accreditation requirements of evaluation bodies but
the highest standards of their peers as reflected in awards,
publications and other recognition.
The fundamental purpose of the university is teaching
students at levels from undergraduate though doctorate level.
Research and scholarship are integral to the education process
as well as responding to the needs of society. The term,
"service," addresses the university's obligation to share the
benefits of its knowledge and abilities to benefit the public
welfare. These three interlocking elements span all of UF's
academic disciplines and multidisciplinary centers, and
represent the university's commitment to pursuing and
disseminating new knowledge while building upon the
experiences of the past.


History
Florida's oldest university, the University of Florida
traces its beginnings to 1853 when the state-funded East
Florida Seminary acquired the private Kingsbury Academy in
Ocala. After the Civil War, the institution moved to
Gainesville. It was consolidated with the state's land grant
Florida Agricultural College, then in Lake City, and was
renamed as the University of Florida. In that year of 1906,
UF had an enrollment of 102 male students. During World
War II, the university entered into agreements to establish
training programs for U.S. service personnel, such as those in
U.S. Army Air Force aircrew training. Until 1947, the
University of Florida was designated for men only and one of
only three state universities. Others were Florida State College
for Women (now Florida State University) and Florida A&M.
However, under certain circumstances, women attended UF
as early as 1916. When the legislature removed all barriers for
female enrollment at UF in 1947, the University of Florida
student body numbered 8,177 men and 601 women.
By the beginning of the 21st century, in terms of
enrollment, the university grew to become one of the top five
largest universities in the nation, with an enrollment of


A COMPONENT UNIT OF THE STATE OF FLORIDA








teaching

research
service

















verview


Mission
Through both the tradition of American liberal arts
higher education and the mandate of the people of Florida,
the University of Florida is organizationally committed to its
mission of teaching, research and service. Each of the three
pillars of its mission is addressed by a faculty and staff who
have designed curricula and support programs that meet not
only the accreditation requirements of evaluation bodies but
the highest standards of their peers as reflected in awards,
publications and other recognition.
The fundamental purpose of the university is teaching
students at levels from undergraduate though doctorate level.
Research and scholarship are integral to the education process
as well as responding to the needs of society. The term,
"service," addresses the university's obligation to share the
benefits of its knowledge and abilities to benefit the public
welfare. These three interlocking elements span all of UF's
academic disciplines and multidisciplinary centers, and
represent the university's commitment to pursuing and
disseminating new knowledge while building upon the
experiences of the past.


History
Florida's oldest university, the University of Florida
traces its beginnings to 1853 when the state-funded East
Florida Seminary acquired the private Kingsbury Academy in
Ocala. After the Civil War, the institution moved to
Gainesville. It was consolidated with the state's land grant
Florida Agricultural College, then in Lake City, and was
renamed as the University of Florida. In that year of 1906,
UF had an enrollment of 102 male students. During World
War II, the university entered into agreements to establish
training programs for U.S. service personnel, such as those in
U.S. Army Air Force aircrew training. Until 1947, the
University of Florida was designated for men only and one of
only three state universities. Others were Florida State College
for Women (now Florida State University) and Florida A&M.
However, under certain circumstances, women attended UF
as early as 1916. When the legislature removed all barriers for
female enrollment at UF in 1947, the University of Florida
student body numbered 8,177 men and 601 women.
By the beginning of the 21st century, in terms of
enrollment, the university grew to become one of the top five
largest universities in the nation, with an enrollment of


A COMPONENT UNIT OF THE STATE OF FLORIDA








teaching

research
service

















verview


Mission
Through both the tradition of American liberal arts
higher education and the mandate of the people of Florida,
the University of Florida is organizationally committed to its
mission of teaching, research and service. Each of the three
pillars of its mission is addressed by a faculty and staff who
have designed curricula and support programs that meet not
only the accreditation requirements of evaluation bodies but
the highest standards of their peers as reflected in awards,
publications and other recognition.
The fundamental purpose of the university is teaching
students at levels from undergraduate though doctorate level.
Research and scholarship are integral to the education process
as well as responding to the needs of society. The term,
"service," addresses the university's obligation to share the
benefits of its knowledge and abilities to benefit the public
welfare. These three interlocking elements span all of UF's
academic disciplines and multidisciplinary centers, and
represent the university's commitment to pursuing and
disseminating new knowledge while building upon the
experiences of the past.


History
Florida's oldest university, the University of Florida
traces its beginnings to 1853 when the state-funded East
Florida Seminary acquired the private Kingsbury Academy in
Ocala. After the Civil War, the institution moved to
Gainesville. It was consolidated with the state's land grant
Florida Agricultural College, then in Lake City, and was
renamed as the University of Florida. In that year of 1906,
UF had an enrollment of 102 male students. During World
War II, the university entered into agreements to establish
training programs for U.S. service personnel, such as those in
U.S. Army Air Force aircrew training. Until 1947, the
University of Florida was designated for men only and one of
only three state universities. Others were Florida State College
for Women (now Florida State University) and Florida A&M.
However, under certain circumstances, women attended UF
as early as 1916. When the legislature removed all barriers for
female enrollment at UF in 1947, the University of Florida
student body numbered 8,177 men and 601 women.
By the beginning of the 21st century, in terms of
enrollment, the university grew to become one of the top five
largest universities in the nation, with an enrollment of


A COMPONENT UNIT OF THE STATE OF FLORIDA





ANNUAL FINANCIAL REPORT -00::--,


S. .. I n r I i : I. .n r : t r
Iri_ 'ri f.: 'i V .. hu:





teaching

research

service


appri''.iniatrl\ -. 11i111ii tuidnt di ided alir'ls. equally
bCE-rcCn fcmialc and maile itudcntr. R.'c.Jinii'd as a Cailcegle
Foundation Rsa.irch E-;tnsive Intl[itiucion, thL LniT-rirv ,of
Fl.rida .lso is a menmbr i'" the piL-scgiiuLi A'.'ciatifn .,f
.Ameican Lini; erUsities ( AA1.U the inlk Fli ida uIIIsri sl[ S


At thL Lnd iit lune 2l11l. c[h gOILinlancJ st[ruictLrL Oi
LIF change-d '.when thL Flurida Boaid .f Regent'. fur the 12-
memb1ie Stiter L'n.1rsiL[ S~e icm %as disl',icd and replaced
bV sparI.ac I- aids Olf tulLccs app,,inrted II' cich sIl,'
un\llliri[\r-. ThIe midrrin Ilectinn, ,.'f2ilil2 included a
Fl.,rida St.tL i~c nitituri'In anmLndnLnt that escabhih-d a
rtaret.id-. idbraid nOf hihei.1 eduiCatriin. In Januaryiv '(lL. Di. I.
Be-Linad %lachien. prils. usl presidcn itdthic Uniiciit ir OF
Utah, h.gan h i, rs.ici to the Uni'.:rsit. n' Fl.,rida a, its
lc':enth priidlnrt.


Facilities
On mir'ire than 2.(i(i( acre- m.ios[t t i[t ..ithin the limit
If a 1 iltiiitiii-pOipulaiin urban ar-a. the LUniversit, tf
Florld.ia Optrciars out oif mlrL than 1 .1111 buildings., th
ni'i.e han 1ix i( f them 'i .ith classir,-i-ms and labhi1at.riics.
UF's facilities hake a b ..1k '.alute f mJc than $1 billi'iin,
Is i1h a rcplacncmint v .lue ,f m. ,r than $2 billion. The
nulhicLasrL;rn aia 'f the le cinpu, i lir;[-d as .n Histuric
Ditiict rrn the- Natrinal RCe'isteI f Hit ric Place,. Their 24
single-s[tudcnt icsidncce arcis hi.us s'me -,41111 srtiLdents and
fiEr family h using \ illagIe huI'.SL nmoi'i than 1 .Nill married
and graduiatL 'sudeint. The HuniL Hall H ,n. ,r R,-idencv
Building e i the- fir-ci eR R:idcrnial Collce'c buLil ftroni the-
.Lnd up n t .S. nd srup in h. in'rs ,tudenrs. LUF is in
rhe cointli auction 'tawe ,if the i million Gniccii s. CancLr
and Biotechnhology Building and c in'truitioin has coim-
meinced in the starc-i.f-thc-art Pr,'rin Be-am Thei.iap Ce.in[Ic
in Jacksins 1ilte. Oh-ir facility impniroemens ciniplcrcd ,i
uindei c'inmtluctiun include the Orthpcpedi SturMliv and
Spurt Mledicine IIntitutL thie, lar M .Ann Harn Cufrin
Par'. llln thel L-eal Iinftlrmainiin Cnter the ICBR Bi. rich-
nol. i.\L Lai'r iatOrY \ Pa. ili'in., and drh riem'dcdlin'.g 'f the
Pharm.ac. \VinYIg if the H.alch Scie-nc- CLenticr.


flagship discover/












































The Baughman Center


The university hosts an impressive array of facilities
dedicated to honoring the arts, humanities and the sciences.
The Florida Museum of Natural History is the largest natural
history/anthropology museum in the Southeast, and among
the top 10 in the nation. Its natural science collections
contain more than 10 million specimens. The museum's $4.2
million lepidoptera center, able to house one of the world's
largest butterfly collection and live butterfly exhibit, opened
during the summer of 2004. The museum also won the
Award of Excellence in the 2003-2004 Curator's Competi-
tion sponsored by Southeastern Museums Conference for its
exhibition, Florida Fossils. The Samuel P. Harn Museum of
Art, with more than 26,000 square feet of exhibit space, is
one of the largest museums in the region. The Harn Museum
is converting a $3.2 million gift into the construction of a
20,000-square-foot sculpture atrium. The Phillips Center for
Performing Arts attracts world-class symphony orchestras,
Broadway plays, operas, and large-scale ballet productions to
Gainesville, with each of its recent seasons already recognized


as some of the finest displays of artistic performances in the
country. UF Performing Arts also operate the Baughman
Center, a serene facility designed to provide an intimate
setting for musical recitals, seminars, and meditative and
contempla-
tive uses. D
Other UF LIBRARIES form the
notable facilities largest information resource
include the world's
largest citrus research ntr the tt.
center, the University
Art Gallery, a microkelvin laboratory capable of producing
near zero degrees Kelvin (absolute zero), a world class brain
institute, an engineering research center for particle science
and technology, a 100-kilowatt training and research reactor,
the second largest academic computing center in the South,
one of the nation's few self-contained intensive care hyper-
baric chambers, a public television and radio station, and two
commercial radio stations.


A COMPONENT UNIT OF THE STATE OF FLORIDA





ANNUAL FINANCIAL REPORT 2003-04


ITable1. HEADCOUNT ENROLLMENT BY C S 6D S


The university's Institute of Food and Agricultural
Sciences (IFAS) is an extensive, statewide operation. In
addition to the facilities on the University of Florida campus
and Extension offices in each of Florida's 67 counties, IFAS
has 1,292 buildings, 3.1 million GSF and 16,591 acres
throughout the state. These facilities are used for teaching,
research and demonstration. During the summer of 2004,
IFAS dedicated its new $3.8 million Biological Control
Research and Containment Facility in Ft. Pierce, and its new
$15 million Gulf Coast Research and Education Center located
in Hillsborough County will be completed in early 2005.
The University Libraries consist of the main research
library and six branch libraries throughout campus, along
with the Health Science Center Library and the Legal
Information Center. They form the largest information


resource system in the state, containing more than 4 million
volumes within its 10 million document holdings. Library
collections are accessed through the computerized LUIS
online system. UF's Library West facility currently is
undergoing a $30 million major expansion and renovation.
Not reflected in the 2003-04 financial data is the
impact of the 2004 hurricane season. By the fact that only
the University of Florida is represented in every Florida
county, it was the only state university impacted by four
hurricanes during 2004: Charley, Frances, Ivan and Jeanne.
As of this writing, the university is finalizing damage
assessment and is working through the state's insurance
fund and the Federal Emergency Management Agency to
recover losses.


flagshipidiscovery












Programs

One of only 18 land-grant universities in the esteemed higher education
organization, the AAU, the University of Florida offers more programs on a
single campus than all but a few U.S. universities. The University of Florida is
a doctoral/research extensive institution as categorized by the Carnegie
Foundation. It has 16 colleges and more than 150 research, service and
education centers, bureaus and institutes. These bring together faculty and
student scholars from various academic programs to provide research and
d.- I_ F..' r Ir- .. ,n r i r.. r. .r N .- 1 1 ,1 III ,, nd. i, i r.



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Students

ri'.. ,,1r. III i-,,. ._nI ..! .I n r 1 ... 11 t 11 l! .._ ,. .r. -.11 1 r..r i!._.d -I ,,,,:
.ri._d nru ,n !ic .id in q_',pp r,...,r, 'r._. 1 Ini im -.r ir._ .rud.-inr. r p_-,. .. -ir. d II
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UF PerformingArts brings the world

to Florida

r.:.- 1 i. :- '.,-"rd .erdi E''*_p r 1.:.ntreal ,rriphi n-
'..nt.n r-l.rii' i- n.:-e Gill Le [i-' erble The Clei-tt_:inr
I. rI.n.l,:.s ,,'u. Irtet IF Fer-i-.rm ing -rt. i: f.rni.u f.r it ,
..*rd-la:. pro.grirrirriin in ditie .er-ie the Cji ti.
r1 Phillip-. Center L'-ii. el Iit. AlJudltlri1n-l1 and thi
E'Bau ihar-i Center
LIFPL- dire.--.tr r r lich:eil E l.-hl .t te. IJF Peil.irm-
in -.rt' ha: clifi nedd the r-ie .ri,. .ultur-il ri di. :.e I.
itrlt-3_tln: or.'.Ild F'r-menlie :. .h a- 'PeIF-F.etujI r 1:1ti:n
ai-d the ml',numeintil bllet ....:I- F'.:.l l-e of tlhe Fo-i-eFt' In
additinll the .:.;'rmi'Ih. iri : ,f ne ,, ,'..:rl:t, 'iuj it. Liai e
-ridr'n.-.ri Happine- ': rd The Elnd :.f the li,---..li, Flus
"EhI'C'. ..hiJi bLe.:-t.rre a B.F "'.I' tele il:n P.-.131 hi1,
- 'l-,_ it iriter r] tl.r-ii.l 3tteritil;ri to.I JF"
r-lrT r-ini art' *i ii e.-dearch *; rri|''j- ha aidditiii-al
re ri'd The r-iiden. -1 Fetu i3lan Hi.jz'. u.jre: and In-e
F3-i. iri.-lud d old ._. lt I-IF perft .rrl.n l.es, t.:. F._l-rt'c.l-
man- a- t a3 l.:..l elerrlmntar i.h.-..i.l peri:.r i tince .it
the -laI '-ija I..l int l-air FP'blic Librlj jn3d 3 i-ia ter
.A,:. ..ith FTheatre diand Dare ,tud.ent:. ,:ri i_:,n': tJie
Ld, in crli-atlll: ir t HI.-Z,:. --li Irne- 1:il-. i :ted and
Fiell.-i'ed t.r *iildr' i In tle I_.F L & h.ind. Fed iiti:
*linii.- and Pe.itrl-m3rlr:e -F.:ce tI:r I .,it lihed Jllldiren
.' .ei e heahll. erin-juh to, lea e their ,ir.i-i The, al:,o
eiTl'rlmed i-rn r jnd tihe h.-l It31 rei ded -One
.-t lle the ter F.ili-:.relrriiiice fc-.r children t- i-.', _.i
der-i'and E .-.lre .ind after Atc lin-; the F.l-rtf.irrinrl.-. ,
Fatierlt I p ided data *-rn pain aind an..iet. le el- hitlFin
t'. is.,e:- eFfectl erie,: -t tle 31 t- I childi'rn ti eatnient
i e rr-le-
IJFF'- .-._-.itinu-e t.:. pre enrt the hbet .-.f tle -old airt
f.:.rrIT I .,i tle r .rltrl .utnln i t the i reatl.-.n the ie
L.ene1ftin-: tl'e unr-l eri .lt and the Fl?. idJa ..:-rririn-rt.





JCIAL REPORT 2003-04


'A DISTIN-

GUISHED

FACULTY

attracted $475

million in research

and training grants

in 2003-04.


Dr. Nicholas Muzyczka, UF Genetics Institute


professional degree programs (including dentistry, law,
medicine, pharmacy and veterinary medicine). Approxi-
mately 25 percent of the UF student body members are
minorities with 7.4 percent of the student population
consisting of African American students, 10.7 percent
Hispanic/Latino students, and 6.7 percent Asian-American
or Pacific Islander students.
University of Florida students are among the best in
the nation. Approximately 90 percent of all entering
freshmen score above the national average on standardized
college entrance exams taken by college-bound students. The
University of Florida ranks first in the nation among public
universities in the number of freshmen National Merit
Scholars in attendance. Florida also ranks first among all
public universities and fourth among all institutions in the
number of National Achievement Scholars in attendance and
UF received more International Baccalaureate transcripts
than any other institution in the world. Committed to
diversity at every level, UF is third among all AAU universi-
ties in awarding bachelor degrees to Hispanic/Latino
students, third in the AAU for awarding bachelor degrees to
African American students and in the top 25 for all universi-
ties nationally in Ph.Ds awarded to African Americans.
Aiding student development, UF has invested extensively in


campus computing infrastructure and in classroom renova-
tions and technology upgrades in the last five years to meet
the needs of modern education in an age of rapidly changing
technology. Further, UF's freshmen retention rate of 94
percent speaks to the outstanding quality of the university's
entire academic experience, from counseling to online
programs to aid self-tracking of academic progress and class
registration.
In addition to being academically motivated, students
lead a rich social and extracurricular life. They belong to
more than 500 student organizations on campus, and attend
more than 2,000 campus concerts, art exhibits and theatrical
productions, guest lectures, sports contests, and other events
a year. UF students participate in an average of two out-of-
class seminars and lectures a day, and enjoy a variety of
outdoor activities throughout the year.









research
service


flagshipidiscovery









"'I ""' ,-^ ^ B ^ JE
thanQ


IQs


Faculty

A distinguished faculty of more than 4,000 attracted $475 million in
research and training grants in 2003-04, up $17 million from the previous

record-breaking year. The University of Florida now has 62 Eminent Scholar
Chairs. Nearly two-dozen faculty members have been selected to the

National Academies of Science and/or Engineering, the Institute of
Medicine or a counterpart in another nation. Also, in a national ranking of

total Fulbright awards as of 2003-04, the University of Florida stood in the
top twenty (17th) among all public universities.

The University of Florida has been awarded national scientific centers
to include the McKnight Brain Institute for the study of neurological

disease; the Engineering Research Center for Particle Science; and the
N national H igh M agn..r-c F.- Id L I-.. i"r. .. i, ii ill .. ...... nd.- rl. 11,. 1 .pI .I.

of the University of IF .. i I- H ..... i, i'r.. i linl ... r, nd L.. il iir...
National Laboratory.

A short listing .. ..t l..n I ..I. i r, pF. i Ir ill. Fi ...- _.. r inI ,.Id.. i .i .!ir ._
Prize-winners in edit .1. Irill i d p...-.r. i i... .-.i -. Fi... ii

aviation engineering; i, ._ ,d. n l,.. I ,, n : .n. ..i.. r c rl... I inn .. .. .t
N A SA's top award fo .i i i el- .._. .t rl. t .. I-I ii, r.., i._i l..l- .. rl._ 5..1 ,

H all of Fam e; and a n .nn... ..t ril._ ir ...nl .. ill 1 1 n.riri.r..n. 1 1. id ..


Table ~~ 2. I-TTENOLETBCO NY-F L2003


Alachua
Baker
Bay
Bradford
Brevard
Broward
Calhoun
Charlotte
Citrus
Clay
Collier
Columbia
Desoto
Dixie
Duval
Escambia
Flagler
Franklin
Gadsen
Gilchrist
Glades
Gulf
Hamilton


4,517
22
278
70
1,349
4,673
12
185
210
533
486
167
22
21
2,038
413
105
3
30
53
8
13
10


Henjih
H.i rnn.r.:.
hl. ;, :
H.II:bt.:.. .:-uuh
H.:.lr,.e:

):ll, :.:.r,
L';,erre
Lee
Leni
Le. ,
L..:.r. ,


Mi rn.
M-,n ,.L.r,

M,:ni,,I.-,Jd
M.:.,i .:.:.
N-.::-.u


-I,
2






L 2
74.:
4E



4 :22
i?




44
-l?







1.4,


-, .: .:.
'--', ." *

I nI. ".

P, ll':
PH.:.lk
P[ .I.:.hr, :
Sr Lu.:.,



Sufil ;
SLI .:.:-

T .:.lu:.

h ",l:.:.r.
.. : . [:

T.:.[;I


UF's Future: Up in the Air

'IF Erinin-er'il I,_-lt_ tlurned L.3iI: th- cil':.I: k -n aer-.i pa.-e
tecldn.-nlor. In mrnetilnr the ieed fe.1 r rhI'eCni['_-rn L c:,- CiF ll-
ti-es that .ther d_ while pr.-te t~ -ti the huIrm.n :-.L-eir-e, IJF
I e.- ch rr e la a jbL-aindj-lrd the *rnitui -*ld i d'.'iQi:il drl e
rOr bLm;er and 1: tiiet to initead ii- e .mnallei land :.l,'.er In
the- end l'r'_ .-ill Inr cluJ -rinl.-.n m ilit-ir. r-ili. pers.-l -
rel p..- i.:- ind tI'- higliters and their r .'.rkin: i1 ha z.-d'J.u.
*o-nriJ it iOn' -
ni the Gdinle:- ill c rri Fu-, j LIF tean i- de :-ilrinir tin,
ir.ll-raft 1hat .r-a be hand-de-l el ei id criai
pro- ide rejl-tirrn Irint-tehIi-enie a-b t .-.i lnditi-
: .n the .-iler ide .-.f hill her t te -I,
be;ra in 19- the tir- 1 nilicr.-aeri-il l'hile
,,s 1" m del .', a_ I -.-I -,es I.-.r, ..,.e, -ed 1l,
-Lince and ..a petroleum p.'ered ITo.
the. ,e r'line-d it t.. a .-pa3rr' -ied


1r I-. upp,-I ted I- tie I']atJla3.r
tr.-le F.r.da.rl fli-e ij.; I F..r.e

3and1 .lm and r-.- r it IrlF.ed tlhi.
I ..' 1 -ill it:: e fti- -':T i Ft,-r-.I.ti.I-,llI
1f71 ht in t.. ari .r l lr"[
-t LIF Cr' Jiu te Elrivr e-ir- i
ird. F'-.ear h -ernter inl FIl-rida
iP-nharndle. UF ie.eac. h"tir are
ta-l n the [-14.. c.:.rl.rept ito it -1
jdifter enrt I e lrri a .rnlall I er.--n
*l l ,J th a. tli A l- I'lJ 1 i .lte .

iteilt Thl A pIL.tlea *.ifrt ... ld
re~lt.n.e .- ta _-' *.L.n rt ..ln
thiu_ Ihllrnintin2 the rined t.r
renioe ontrlt.:.I The u,_efi.llnesi
Jf third, rapal-ilIt ,iclude.. fl,-in:
In rndlti.-l .n here J eit
S r inc iIrrn ll ir_;ti.n' c diffL lt --'I -
9 denied .*.hi_ fl ing i-ndiTi--n
/ I 'q'i-l irrin- diate .ur *-:-.-r it
"t iF the :A i ne e- the hrllit but
:1 3, an oil rtl r llt


2 4

2 -?
4

I ??.
2i

2I
ii
I?7

2i
i 2



2i


A CC'MPF'NENT UNIT I I III I II I I I I.*I11 A-l





ANNUAL FINANCIAL REPORT :00-:-:


lI mli Tb 3I:I : IR-../.A ] IE D IIERE LE L


in2io.d 7n00-n' 7In001n 7 000n 19- -n


UF


STUDENTS

ore among

the best in

the nation.


Bachelors
Masters
Doctor of Philosophy
Juris Doctor
Doctor of Medicine
Doctor of Dental Medicine
Doctor of Pharmacy
Doctor of Veterinary Medicine


cr'insc.r-arin. LUF is a rccogniz.d lea'i in a %ide -arLtr' Of
spc,:ial.ti.. arnd jLas. hm phhimjac aind public iclati'.'ns i
pa.i nmigaci'n and matrL.trls nginLLring. UF cic-ncits and
r-c-archl rs inad- .iLniticanc di;c' ,-ric-s and dc lupilpmicnts iln
suILh .ircas Is a[I10ir0111n, m11icii'hii.- iY. l1I.'- lluri and
medical rcchnolb l am jn, othlicrs fields. In all, LUF ianks
a;ixlh amalllllg l un.ii'lrtitl, Fll pidiC-n, a, a.rdd.


Sports and Recreational

Activities

The UnLlLc\ ir it .f Fl. rid.a i.ntinuaily ciili-'\ sigeniti-
cani Icccs 'V itli its arsir'. sp rts prgiriami \\n- h a pritig.m-
rLciird 12 Gatur [icaJa accoimplihinL natiinal tup-tcn
fini ,h, during 2'p i -l l The un iIrsilt, ha, mladL strong
clminMitnicnit w' uippJirt (ach 'ar, 1i. p',irt t ields and a 'nd
pildi' C~ ,iing athlcEic c',nimpLticl-in for fans and studcnt-
achlLt alik~ FuLILd in laigc part hi thL fi'u i t111 -114
nati nal ruLnniiCr-uLip tin h'li hl CGa, ,r athIlkics aV. V.ll a' thL
[rip-Ec1n 1.ll\' Lln. iUn tLi ito Fi- i ida fini shlid s rl in the
nat'iinal a.ll-p.jrts cimnp[Iri'in fti '.'--rail men's and .'mnns
prugrain 'l i.:cl L iI. up fi1011 it' prvi, lu,; Ianking of Sc%-nh.
Onl, L'F and LUCLA ha.ie f niihLd in the op-rcn all-spuitF
banking in L.-',c. yaI ini c Lrh 1 ".3-.-- sC-asit. Pi,, .idinL
Stidi t CCtL-c niC n.1 cnaeiit-n[ Otf thui uie 5er S spirits pri rJliin
is the- Uini I.Lin -\thlJ-tic A'.iciaiaIon, a dirLet supportt
olrgani,:atiln LI\ i ng a; unfL oif -v ral cnimp' nCinl units iIf thh
Ull l ci 1-1 .
sidc fi,m \aris[-y p-i rt. i, 1 .'.rsiitf it Fl ,rida
sudenis, faculty and staff t ni'r fi t-:113s iCCCLi-10n.1al
fa, il itis ',a[cd a.t in k cniln [ ,'p- J1t -'n thi- cam puI- SI ith
numllkru.i ricri.at.ionia and ficn,' prF ,graim, ,ffkii-d. The-


Stephen C. OCt-nntll Ce-ner and thde \\a\'nc RPcit. Uniton
pro idc 'pac fur a mi riad n acil iti-,. A ch. ,u'and p-opl-
can participatL 'imulani.'ul, il Linht diffLrLnt ricritatio.nal
acritics in [h e O'C. in nll CQn[ci. .hi iLh stats 12.(1(1(1 Fi
oiJnc. is and tiLhc ci ent. Tihe ConnCllcll i-ntLr Ils.I is
humir to chi- Gatri bakci.ball, villcvball v. i, nminin and
'i \mn.iasici [ic-aif. Th, uandS uLI thc RLtL Lnin,,n daili ftIr
diniin mirccin games. hi[-rl accoJinimmda[itiin and niirc.
Thc Sludeni R. rcari'nll and Firic' Ccntrc \\.a Lhce
tirs( faciliv dl-dicatLid to r-cr-atiiun at th- un-i\rsi[\cy -hI n it
,upcnid in 1'.1 I. and nw'r. if-tcr. n mrL than lii tftni-s' cla;~c.
pil \ccIk. The Sr',udrh\cs R.ciLati'-.al Ccntrc is a 1 i 1,11 1(1-
sql.irce-t''rit tlclIt' li.cat.d 'n the cr icr ,4 1 2'h-acic si'L
that c it-a ur., hglhtrd Outdo'ur bahkrball ciiurts., tLnnis c ,iirt
and a [n urnanimnt- riadi. fLtu-tfi.ld lftbhall coimplL-. The
LinI\-i si ais h-ts "timc 50 pr l) rt' ltil', tfrJim AkdJ [',i
viaac' ,kuii: and v, IhclchIar baskt-.iall, and its inri amua.il
,p, rt jttrhLctld mlc L [han ., i1.111I paiciipan[, cach SLmi-,tcr
dJuing; thLu pat acadnminc \,L.1.


flagship discover/


8.574
3.0l18
694
425
116
76
272
75


7.975
2889
591
414
III
80
254
82


7,776
2.752
607
416
107
71
231
82


7663
2.470
574
363
120
79
203
73


7.655
2.224
516
381
115
79
169
80











Open spaces, small ponds, picnic areas, shady nooks, and even an
81-acre wildlife sanctuary and lake on campus provide venues to enjoy
Florida's year-round outdoor life.


An Outstanding Value

The University of Florida has earned a national reputation for being
an outstanding value. The 2004 U.S. News and World Report rated UF
sixteenth among all public universities, yet UF ranked as the least expensive
in-state tuition of all AAU public universities, with an in-state tuition
charge more than $3,000 less than the AAU public university average and
almost $7,000 less than the most expensive public university in-state
tuition. Moreover, few organizations provide a return on investment like
the University of Florida. For each tax dollar invested on the university, UF
generated $8.11 total spending in the state economy, with direct benefits to
Florida citizens with discoveries in science, technology, healthcare, educa-
tion and other areas. In the last dozen years, there have been more than 75
spin-off companies, the majority of which are affiliated with UF and have
remained in the state.
The University of Florida begins the presidency of Dr. J. Bernard
Machen in the enviable position of being pedagogically respected,
financially sound, organizationally stable and eager for the challenges
of the 21st century.






service

research


RESEARCH AWARDS BY SPONSOR FY 2003-2004 FEDERAL AWARDS
(in millions) BYAGENCY

Other Millions
$12.7 NIH $113.2
Foundations 3% NSF 42.4
$49.4 USDA 29.2
11% DOD 21.2
HHS 14.3
HRSA 8.3
Industry Education I 1.1
$59.2 NASA 10.4
13%
Federal Energy 9.0
$285.7 Veteran's Affairs 6.9
60% Commerce 7.5
DOT 2.4
State & Interior 2.5
Local EPA 1.0
$63.0 Other Federal 6.3
13%
Total $285.7


A COMPONENT UNIT OF THE STATE OF FL





ANNUAL FINANCIAL REPORT 2003-04


AUDITOR GENERAL
STATE OF FLORIDA
G74 Claude Pepper Building
III West Madison Street
William O. Monroe, CPA est Madis850/488-5534/SC 278-5534
Tallahassee, Florida 32399- 1450
Auditor General Tallahassee Florida 32399-14Fax: 488-6975/SC 278-6975

The President of the Senate, the Speaker of the
House of Representatives, and the
Legislative Auditing Committee

INDEPENDENTAUDITOR'S REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of the University of Florida, a component unit of the State of Florida, and
its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2004, as shown on pages 20 through
43. These financial statements are the responsibility of the University's management. Our responsibility is to express opinions on
these financial statements based on our audit. We did not audit the financial statements of the discretely presented component
units, as described in note I to the financial statements, which comprise 100 percent of the transactions and account balances of
the aggregate discretely presented component units columns. Those financial statements were audited by other auditors whose
reports thereon have been furnished to us, and our opinion on the financial statements, insofar as it relates to the amounts
included for these entities, is based solely upon the reports of the other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the reports
of the other auditors provide a reasonable basis for our opinions.

In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly,
in all material respects, the respective financial position of the University of Florida and of its aggregate discretely presented
component units as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for
the fiscal year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2005, on our consideration of
the University of Florida's internal control over financial reporting and on our tests of its compliance with certain provisions of
laws, administrative rules, regulations, contracts, and grant agreements. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our
audit. That report is included as part of our separately issued audit report on the University.

The MANAGEMENT'S DISCUSSION ANDANALYSIS on pages 15 through 19 is not a required part of the basic financial
statements, but is supplementary information required by accounting principles generally accepted in the United States of America.
We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did not audit the information and
express no opinion on it.

Respectfully submitted,




William O. Monroe, CPA
January 19,2005


flagshipidiscovery










































MANAGEMENT'S DISCUSSION AND ANALYSIS

From the Vice President for Finance and Administration


INTRODUCTION AND BACKGROUND


The following Management's Discussion and Analysis (MD&A) pro-
vides an overview of the financial position and activities of the Univer-
sity of Florida (the University) for the fiscal year ended June 30, 2004,
and should be read in conjunction with the financial statements and
notes thereto. This overview is required by Governmental Accounting
Standards Board (GASB) principles, GASB Statement No. 35, Basic
Financial Statements -and Management's Discussion and Analysis for
Public ( and Universities, as amended by GASB Statements Nos.
37 and 38.




FINANCIAL HIGHLIGHTS


The University's net assets increased by $43.5 million or 3.2% in com-
parison with the 2002-03 fiscal year's net assets. Total operating rev-
enues increased by 8%. Major components of operating revenues are
contracts and grants and tuition and fees. Revenues from contracts and
grants increased 9.2%. Student tuition and fees, net of scholarship al-
lowances, increased by 8.6% as a result of an increase in total enroll-


A COMPONENT UNII


ment for the year of 2.7% and an increase in student tuition and fee
rates. Tuition and fee rates for fiscal year ended June 30, 2004, increased
for resident undergraduates and graduate students by 8% and 14%,
respectively; fees for non-resident undergraduate and graduate students
increased by 15% and 16%, respectively. State appropriations, the
primary source of nonoperating revenue, increased by 3.3%. Another
source of nonoperating revenue is investment income. In fiscal year
ended June 30, 2004, the University had a net investment loss of $1.1
million, compared to a $43.2 million income in fiscal year ended June
30, 2003, as a result of market fluctuation and a decline in interest rates.
The average rate earned on investments in the Florida State Treasury
investment pool was 3.2% and 5.3% for fiscal years ended June 30,
2004 and 2003, respectively. More information on investments is in
note 3 to the financial statements.

Total operating expenses increased by 6.2%. The largest category of
operating expenses, personnel services, increased by 5.4%. Deprecia-
tion expense increased significantly in fiscal year ended June 30, 2004.
Corrections were made to accurately reflect the useful lives of certain
buildings and to reflect the proper useful lives of a particular category of
equipment. These corrections accounted for an additional $14.5 mil-
lion reported in the depreciation expense this year.
- OFTHE STATE OF FLORIDA












The University completed five major construction projects this year:
(1) UF Bookstore and Visitor Welcome Center with a parking garage
(total capitalized costs of $15.2 million); (2) Gerson Hall, the account-
ing building (total capitalized costs of $7.6 million); (3) Well Hall re-
modeling, which involved remodeling and renovation of this 50-year
old building (total capitalized costs of $10.7 million); (4) the McGuire
Center for Lepidoptera Research including a butterfly vivarium (total
capitalized costs of $7.1 million); and (5) the P. K. Yonge Laboratory
School Auditorium (total capitalized costs of $7.4 million).


Construction continues on several major construction projects. The
most significant commitment of resources is associated with the Genet-
ics and Cancer Research Center, which has a total project cost of $83.8
million and a commitment balance of $65 million at June 30, 2004.
This project is for construction of a multi-disciplinary biomedical re-
search facility for the UF Genetics Institute and the Cancer Research
Center. The new facility will include research laboratories, animal re-
search facilities, faculty and administrative offices, and a rooftop re-
search greenhouse. Design and construction of this project will be con-
current with another construction project, the Interdisciplinary Center
for Biotechnology Research (ICBR) Laboratory Pavilion. The ICBR
project will consolidate operations which are currently located in six
different Health Science Center and Institute of Food and Agricultural
Sciences facilities. Additional information about the University's capital
commitments at June 30, 2004, for these and other projects is presented
in note 13 to the financial statements.




OVERVIEW OF FINANCIAL STATEMENTS


The GASB Statement No. 35 requires the University's financial report
to include three financial statements: the Statement of Net Assets; the
Statement of Revenues, Expenses, and Changes in Net Assets; and the
Statement of Cash Flows. The financial statements encompass the Uni-
versity and its component units. These component units include:


-* The University's Direct-Support Organizations These are
separate, not-for-profit corporations organized and operated exclusively
to assist the University in achieving excellence by providing supplemen-
tal resources from private gifts, bequests and valuable education sup-
port services.


+ The Health Science Center Affiliates These are the several
corporations closely affiliated with the University of Florida J. Hillis
Miller Health Science Center, including the Faculty Practice Plans.


+ Shands Hospital and Others -This includes the Shands Teach-
ing Hospital and Clinics, Inc., a not-for-profit corporation that is con-
tractually obligated to manage, operate, maintain and insure the hospi-
tal facilities in support of the programs of the Health Science Center at
the University of Florida.

Information regarding these component units, including summaries of
their separately issued financial statements, is presented in note 1 (Sum-
mary of Significant Accounting Policies) and note 18 to the financial
statements. This MD&A focuses on the University, excluding the com-
ponent units. Management information for these component units is
included in their separately issued financial statements.

The financial statements characterize revenues and expenses as either
operating or nonoperating. A significant portion of the University's
anticipated, recurring resources are considered nonoperating, as defined
by GASB Statement No. 35. The principal component of nonoperat-
ing revenues for fiscal year ended June 30, 2004, is State appropriations
for operations ($549.1 million). Recurring nonoperating expenses con-
sist primarily of interest expense on captial asset related debt, totaling
$6.8 million for fiscal year ended June 30, 2004.




STATEMENT OF NET ASSETS


The Statement of Net Assets reflects the assets and liabilities of the Uni-
versity, using the accrual basis of accounting, and presents the financial
position of the University at a specified time. The difference between
total assets and total liabilities, net assets, is one indicator of the current
financial condition of the University. The changes in the net assets that
occur over time indicate improvements or deterioration in the University's
financial condition.


The following summarizes the University's assets, liabilities, and net as-
sets at June 30:


2004

$ 768.1
1,077.7
138.0
1,983.8


Assets:
Current Assets
Capital Assets, Net
Other Noncurrent Assets
Total Assets

Liabilities:
Current Liabilities
Noncurrent Liabilities
Total Liabilities

Net Assets:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted


286.3
274.3
560.6


952.9

384.5
85.8


2003

$ 688.8
986.4
170.0
1,845.2


196.5
269.0
465.5


858.2

421.8
99.7


Total Net Assets


$ 1,423.2 $ 1,379.7


flagshipidiscovery





MANAGEMENT'S DISCUSSION AND ANALYSIS


STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET ASSETS


The Statement of Revenues, Expenses, and Changes in Net Assets pre-

sents the results of the University's revenue and expense activity, catego-
rized as operating or nonoperating. Revenues and expenses are recog-

nized when earned or incurred, regardless of when cash is received or

paid. The following summarizes the University's activity for the fiscal
years ended June 30:


Condesed tate ent f Reenue, Exense, an


7?2 4


Operating Revenues
Operating Expenses


7nn2


$ 890.8 $ 824.9
(1,468.6) (1,383.3)


Operating Loss


(577.8)


Net Nonoperating Revenues (Expenses)

Income (Loss) Before Other Revenues,
Expenses, Gains, or Losses

Other Revenues, Expenses,
Gains, or Losses
Increase in Net Assets

Net Assets Beginning of Year

Net Assets End of Year


537.4

(40.4)


83.9


(558.4)

577.6

19.2


82.0


43.5 101.2


1,379.7


1,278.5


$ 1,423.2 $ 1,379.7


OPERATING EXPENSES


Expenses are categorized as operating or nonoperating. The majority of
the University's expenses are exchange transactions, which GASB State-
ment No. 35 defines as operating expenses. GASB gives financial re-
porting entities the choice of reporting expenses in the functional or
natural classifications. The University has chosen to report the expenses
in their natural classifications on the face of the statement and has dis-
played the functional classifications in the notes to the financial state-
ments. The following summarizes the operating expenses for each
method of classification for the fiscal years ended June 30:




Natural Classifications 2004 2003
Compensation and Employee Benefits $ 961.4 $ 912.3
Services and Supplies 254.6 271.9
Depreciation 124.1 83.1
Scholarships, Fellowships and Waivers 64.2 52.0
Utilities and Communications 49.8 42.5
Self-Insured Claims and Expenses 14.5 21.5

Total Operating Expenses $ 1,468.6 $ 1,383.3

Functional Classifications 2004 2003
Instruction $ 458.1 $ 439.8


Research
Depreciation
Public Service
Academic Support
Institutional Support
Auxiliary Operations
Operation and Maintenance of Plant
Student Services
Scholarships and Fellowships, Net*
Other

Total Operating Expenses


387.1
124.1
S15.1
103.7
82.2
80.2
70.3
27.6
19.6
.6


371.5
83.1
105.1
90.8
96.9
86.1
70.4
28.8
9.9
.9


$ 1,468.6 $ 1,383.3


OPERATING REVENUES


GASB Statement No. 35 categorizes revenues as either operating or
nonoperating. Operating revenues generally result from exchange trans-

actions where each of the parties to the transaction either give up or
receive something of equal or similar value.


The following summarizes the operating revenues by source which were
used to fund the University's operating activities for the fiscal years ended

June 30:


Oprain Reene (i milos


* Net of Scholarship Allowances of $69.9 million in 2003-04 and $57.4 million
in 2002-03.


NONOPERATING REVENUES AND

EXPENSES


Certain revenue sources that the University relies on to provide funding
for operations, including State appropriations, gifts, and investment
income, are defined by GASB as nonoperating. Nonoperating expenses
include capital financing costs and costs related to capital assets. The
following summarizes the University's nonoperating revenues and ex-
penses for the fiscal years ended June 30:


Grants and Contracts
Student Tuition and Fees, Net of
Scholarship Allowances
Sales and Services of Auxiliary Enterprises
Sales and Services of Educational Departments
Other

Total Operating Revenues


2004
$ 585.4
160.9

80.5
61.0


2003
$535.9
148.2

78.7
57.8
4.3


$890.8 $ 824.9


State Appropriations
Investment Income (Loss)
Other Nonoperating Revenues (Expenses)
Interest on Capital Asset-Related Debt

Net Nonoperating Revenues (Expenses)


A COMPONENT UNIT OFTHE STATE OF FLORIDA


2004
$549.1
(1. 1)
(3.8)
(6.8)


2003
$531.8
43.2
9.6
(7.0)












OTHER REVENUES, EXPENSES, GAINS,

OR LOSSES


This category is composed of capital appropriations, capital grants and
gifts, and transfers. The following summarizes the University's other
revenues, expenses, gains, or losses for the fiscal years ended June 30:


[4l 1 .] lJ &i ] i 1! [ .II 24l i1-[ .Ul~L".I i dI .-.ri[mi..LUnll


Capital Appropriations
Capital Grants, Contracts and Donations


Total Other Revenues


2004
$ 37.7
46.2

$ 83.9


200,
$ 52.4


$ 82.0


CAPITAL ASSETS, CAPITAL EXPENSES AND

COMMITMENTS, AND DEBT

ADMINISTRATION


Capital Assets

At June 30, 2004, the University had approximately $1.08 billion in-
vested in capital assets, net of accumulated depreciation of $1.04 bil-
lion. Depreciation charges for the current year totaled $124.1 million.
The following summarizes the University's capital assets, net of accu-
mulated depreciation as of June 30:



Capita A et" N (+rin millions)


STATEMENT OF CASH FLOWS


The Statement of Cash Flows provides information about the
University's sources and uses of cash and cash equivalents during
the fiscal year. The following summarizes sources and uses of cash
and cash equivalents into the four categories defined by the GASB
for the fiscal years ended June 30:


Land
Infrastructure and Other Improvements
Buildings
Furniture and Equipment
Library Resources
Property Under Capital Lease and
Leasehold Improvements
Computer Software and Other Capital Assets
Construction in Progress

Total Capital Assets, Net


7004
$ 10.5
23.4
568.6
230.6
59.5


2003
$ 10.2
25.5
555.3
226.1
61.7


2004


Cash Flows From:
Operating Activities
Total Provided
Total Uses
Total


Noncapital Financing Activities
State Appropriations
Operating Subsidies and Transfers
Other Sources and Uses
Total

Capital and Related Financing Activities
Capital Appropriations, Subsidies,
Transfers, Grants and Gifts
Other Receipts and Proceeds
Purchases of Capital Assets
Principal and Interest Paid on Capital
Debt and Leases
Total


Investing Activities
Net Cash (Used in) Provided by
Investing Activities

Net Change in Cash and
Cash Equivalents

Cash and Cash Equivalents,
Beginning of Year

Cash and Cash Equivalents,
End of Year


$ 887.3
(1,335.1)
(447.8)


549.1
.1
17.6
566.8


70.2

.2
(200.0)
(13.2)

(142.8)



(68.7)


(92.5)


125.3


?0n


$ 840.0
(1,281.6)
(441.6


531.8
.2

532.0


103.6

12.1
(153.0)
(13.3)

(50.6)



(27.2)


12.6


112.7


Additional information about the University's capital assets is presented in note 7
to the financial statements.



Capital Expenses and Commitments

Major capital expenses through June 30, 2004, were incurred on the
following projects: Orthopedics Surgery and Sports Medicine Insti-
tute, a teaching, research and clinical care facility ($18.2 million); Ge-
netics and Cancer Research Center, a multi-disciplinary biomedical re-
search facility ($8.8 million); Utility/Infrastructure Improvements ($11.8
million); and the UMC-Shands Jacksonville Proton Beam Facility to be
located on the campus of the Shands Jacksonville Medical Center in
Jacksonville, Florida ($9.9 million). The following summarizes the
University's major capital commitments with remaining balances over
$5 million as of June 30, 2004:


$ 32.8 $ 125.3


flagshipidiscovery


$ 1,077.7 $ 986.4





MANAGEMENT'S DISCUSSION AND ANALYSIS


Project Name Co e


Genetics and Cancer Research Center
Library West Addition and Renovation
UMC-Shands Jacksonville Proton Beam Facility
2003-2004 Maintenance, Repairs, and Renovations
Murphree Hall Renovation
Orthopedics Surgery and Sports Medicine Institute
Utilities Infrastructure Improvements/Capital Renewal
IFAS Relocation and Construction Trust Fund
ICBR Biotechnology Laboratory Pavilion
Projects with remaining balances less than $5 million


Additional information about the University's capital commitments is presented in note 13 to the financial statements.


Debt Administration


ECONOMIC OUTLOOK


As of June 30, 2004, the University had approximately $127.9 million
in outstanding bonds and revenue certificates, capital leases and install-
ment purchase agreements, representing a decrease of $5.7 million (4.3%)
from the 2002-03 fiscal year. The following summarizes the outstand-
ing long-term debt described above as of June 30:


Lon -Tr DetI i mlios


Bonds and Revenue Certificates
Capital Leases
Installment Purchase Agreements

Total Long-Term Debt


2004
$ 123.2
3.9


2003
$ 129.1
4.0
.5


$ 127.9 $ 133.6


Additional information about the University's long-term debt is presented in
note 9 to the financial statements.


The 2004 hurricane season saw four hurricanes striking Florida over a
six-week period. State tourism officials are still determining the finan-
cial impact of Hurricanes Charley, Frances, Ivan andJeanne on the state's
tourism industry. Tourism is Florida's largest industry and sales tax from
tourism accounts for about 20% of Florida's tax revenue. On the up
side, a statewide rebuilding effort is positively affecting Florida's economy.
No change in the University's budget as a result of the hurricanes is
anticipated for the remainder of this fiscal year.


The budget that the Florida Legislature adopted for the 2004-2005 fis-
cal year provided 7.1% more in tax-dollar support for the operation of
the state universities. It called for state spending on university con-
struction to rise by 18.3% and provided about 14.2% more for the
maintenance and repair of university buildings.


The University expects an increase in revenue from student tuition and
fees. Student tuition and fee rates for fiscal year 2004-2005 increased
for Florida resident undergraduate and graduate courses by 6.3% and
11.3%, respectively. Non-resident undergraduate and graduate tuition
and fee rates increased by 14.6% and 14.9%, respectively. Overall en-
rollment for Fall 2004 is up from Fall 2003 by 0.2%; undergraduate
enrollment decreased by 0.7% and graduate and professional enroll-
ment increased by 1.3% and 5.6%, respectively, shifting enrollment
into courses with higher tuition costs.


A COMPONENT UNIT OFTHE STATE OF FLORIDA


Current


Commitment


$ 73.8
25.4
29.7
11.6
9.7
26.9
6.5
12.2
6.0
106.0


Total


$ 8.8
2.8
9.9
1.4
.4
18.2

6.6
.7
76.2


$ 65.0
22.6
19.8
10.2
9.3
8.7
6.5
5.6
5.3
29.8


$ 307.8 $ 125.0 $ 182.8


I Capital Expense Commitments (Remaining Balance over $S Million) (in millions)














(amounts expressed in thousands)

Direct-Support Health Science Shands Hospital
University Organizations Center Affiliates and Others


ASSETS
Current Assets:
Cash and Cash Equivalents (Note 2)
Investments (Note 3)
Accounts Receivable, Net (Note 4)
Due from Primary Government/Component Units (Note 5)
Loans and Notes Receivable, Net (Note 4)
Inventories (Note 6)
Other Current Assets


Total Current Assets


$ 25,210
578,015
75,156
79,483
3,344
5,789
1,045

768,042


Noncurrent Assets:
Restricted Cash and Cash Equivalents (Note 2)
Restricted Investments (Note 3)
Loans and Notes Receivable, Net (Note 4)
Depreciable Capital Assets, Net (Note7)
Nonnne reciable Ca ital Accosc s(Nlo 7


0 Other Noncurrent Assets

o Total Noncurrent Assets

- TOTAL ASSETS
O


U1W \ ~'


7,547
97,976
31,594
919,805
157,873
921

1,215,716


$ 31,598
21,801
39,624
107,153
423
711
3,735

205,045


794
1,058,681
4,773
126,421
26,079
728

1,217,476


$ 61,435
1,024
47,147
14,333

89
2,130

126,158



10,942

16,516
296
18,564

46,318


$ 106,576
120,176
134,112
5,602


32,272

398,738



227,121

513,034
56,323
76.527

873,005


$ 1,983,758 $ 1,422,521 $ 172,476 $ 1.271,743


LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Salaries and Wages Payable
Due to Primary Government/Component Units (Note 5)
Deferred Revenue
Deposits Held in Custody
Obligations Under Securities Lending and
Repurchase Agreements
Long-Term Liabilities Current Portion: (Note 9)
Bonds and Revenue Certificates Payable
Installment Purchase Agreements Payable
Capital Leases Payable
Compensated Absences Payable
Liability for Self-Insured Claims
Other Current Liabilities


$ 32,402
30,906
11,728
40,860
24,580
123,489


5,904
316
73
7,130
8,939


Total Current Liabilities


Noncurrent Liabilities (Note 9):
Bonds and Revenue Certificates Payable
Installment Purchase Agreements Payable
Capital Leases Payable
Compensated Absences Payable
Liability for Self-Insured Claims
Other Noncurrent Liabilities


286,327


117,276
455
3,862
107,533
45,142


274,268

560.595


Total Noncurrent Liabilities


TOTAL LIABILITIES


NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted:
Nonexpendable:
Endowment
Expendable:
Loans
Capital Projects
Debt Service
Other Restricted Net Assets
Unrestricted


952,935


48,260
109,376
3,141
223,641
85,810

1,423,163


Total Net Assets


$ 12,004
4,670
68,313
61,230
225



1,525


1,349

6,365

155,681


I 11,410


49

34,441

145,900


$ 7,217
15,881
7,766

25



435

50
1,320

5,986

38,680


18,405

169
11,309

4,388

34,271


$ 143,751
28
3,784
45
44


13,691
582
2,657


106


164,688


433,471
3 11
8,732


83,921

526,435


301,581 72,951


53,737


669,293


396

260,923
136,591

1,120.940


(2,248)


108,959


1,500
100,273

99,525


2,132
468,393

580,620


TOTAL LIABILITIES AND NET ASSETS


The accompanying Notes are an integral part of the financial statements.


flagshipidiscovery


LJ



Z
,-J
U


-Z
<

Z
Z


$ 1,983,758 $ 1,422,521 $ 172,476 $ 1,271,743





FINANCIAL STATEMENTS


(amounts expressed in thousands)


Direct-Support Health Science


Shands Hospital


university Organizations Center Affiliates and hers


REVENUES
Operating Revenues:
Student Tuition and Fees, Net of Scholarship
Allowances of $69,880
Federal Grants and Contracts
State and Local Grants and Contracts
Nongovernmental Grants and Contracts
Sales and Services of Auxiliary Enterprises (Note 10)
Sales and Services of Educational Departments
Sales and Services of Component Units
Hospital Revenue
Gifts and Donations Component Units
Royalties and Licensing Fees Component Units
Interest on Loans and Notes Receivable
Other Operating Revenues


$ 160,930 $


271,582
50,081
263,777
80,454
60,968





717
2,280

890,789


Total Operating Revenues


EXPENSES
Operating Expenses:
Compensation and Employee Benefits
Services and Supplies
Utilities and Communications
Scholarships, Fellowships and Waivers
Depreciation
Self-Insured Claims and Expenses
Other Component Unit Operating Expenses

Total Operating Expenses (Note 12)


961,416
254,591
49,842
64,210
124,092
14,444


1.468.595

(577.806)


Operating Income (Loss)


NONOPERATING REVENUES (EXPENSES)
State Appropriations
Investment Income (Loss)
Interest on Capital Asset Related Debt
Other Nonoperating Revenues (Expenses)

Net Nonoperating Revenues (Expenses)

Income (Loss) Before Other Revenues, Expenses,
Gains, or Losses


549,048
(1,088)
(6,756)
(3,807)

537,397


(40,409)


Capital Appropriations
Capital Grants, Contracts and Donations
Addition to Permanent Endowments
Transfers from/(to) Component Units


Total Other Revenues, Expenses, Gains or Losses


Increase (Decrease) in Net Assts

Net Assets, Beginning of Year


37,677
46,228


83,905


43,496


1,379,667

$ 1,423,163


Net Assets, End of Year


5,726

239,591

245,317

(48.387)




126,145
(2,366)
2,716

126,495



78,108




83,913
3,275

87,188

165,296

955,644

$ 1,120,940


4,758

323,130

327.888

68.542




367
(162)
(84,729)

(84,524)



(15,982)





43,835

43,835

27,853

71,672

$ 99,525


59,801

1,134,209

1.194.010

123.722




9,219

(17,169)

(7,950)



115,772



7,177
23
(46,417

(39,217)

76,555

504,065

$ 580,620


The accompanying Notes are an integral part of the financial statements.


A COMPONENT UNIT OFTHE STATE OF FLORIDA


- $


43,421
934
110,645
36,733

5,197

196,930


47
351,866
26,054



18,463

396,430


473
1,263,907
1,127
998

51,227

1,317,732













(amounts expressed in thousands)


University


CASH FLOWS FROM OPERATING ACTIVITIES
Student Tuition and Fees
Grants and Contracts
Sales and Services of Auxiliary Enterprises
Sales and Services of Educational Departments
Repayment of Loans Receivable
Interest on Loans Receivable
Other Operating Receipts
Payments to Employees
Payments to Suppliers
Payments for Scholarships and Fellowships
Loans Issued to Students
Payments on Self-Insurance Claims
Other Operating Expenses

Net Cash Provided (Used) by Operating Activities


,- State Appropriations
O Direct Loan Program Receipts
E Direct Loan Program Disbursements
Operating Subsidies and Transfers
I. Funds Held for Others
S Other Nonoperating Receipts
O Other Nonoperating Expenses
LU
Net Cash Provided (Used) by Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
Z Proceeds from Capital Debt
< Capital Appropriations
Z Capital Subsidies and Transfers
L- Capital Grants and Gifts Received
S Proceeds from Sales of Capital Assets
) Other Receipts for Capital Projects
Z Purchases of Capital Assets
Z Principal Paid on Capital Debt and Leases
< Interest Paid on Capital Debt and Leases


G ACTIVITIES


e Net Cash Provided (Used) by Capital and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES
Sale of Investments
Purchase of Investments
Interest on Investments

Net Cash Provided (Used) by Investing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

Cash and Cash Equivalents, End of Year

RECONCILIATION OF NET OPERATING REVENUES (EXPENSES)
(EXPENSES) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Net Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation Expense
Changes in Assets and Liabilities:
Receivables, Net
Inventories
Other Assets
Accounts Payable
Accrued Salaries and Wages Payable
Liability for Self Insured Claims
Deferred Revenue
Deposits Held for Others
Compensated Absences

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

The accompanying Summary of Significant Accounting Policies and Notes are an integral part of the financial statements.

flagshipidiscovery


$ 161,530
583,516
80,492
60,969
7,870
822
(3,409)
(949,502)
(309,267)
(64,210)
(9,611)
(6,996)


(447,796)


549,048
141,493
(141,178)
67
17,991
2,762
(3,435)

566.748



57,012
(20,752)
33,972
217

(199,983)
(6,523)
(6,742)

(142,799)


872,567
(959,084)
17,813

(68.704)

(92,551)

125,308

$ 32,757



$ (577,806)


124,092

(7,147)
(1,808)
(392)
(2,633)
7,093
7,448
(1,463)

4,820


CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES









































NOTESTOTHE FINANCIAL STATEMENTS


For the Fiscal Year Ended June 30, 2004


I. SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES


The significant accounting policies followed by the University of
Florida are described below to enhance the usefulness of the financial
statements.

A. Reporting Entity

The University of Florida is a separate public instrumentality that is
part of a state university system of public universities. A constitutional
amendment effective January 7, 2003, created a board of governors to
be responsible for the management of the state university system. A
separate board of trustees shall administer each public university.

The University of Florida Board of Trustees (Trustees) consists of thir-
teen members. The Governor appoints six citizen members and the
Board of Governors appoints five citizen members. These members are
confirmed by the Florida Senate and serve staggered terms of five years.
The chair of the faculty senate and the president of the student body of
the University also are members. The Board of Governors establishes


the powers and duties of the Trustees. The Trustees are responsible for
setting policies for the University, which provides governance in accor-
dance with Florida law, State Board of Education rules, and the Board
of Governors. The Trustees select the University President and the
State Board of Education must ratify the candidate selected. The Uni-
versity President serves as the executive officer and the corporate secre-
tary of the Trustees and is responsible for administering the policies
prescribed by the Trustees for the University.

Criteria for defining the reporting entity are identified and described
in the Governmental Accounting Standards Board's (GASB) Codifica-
tion of Governmental Accounting and Financial Reporting Standards,
Sections 2100 and 2600. Application of these criteria determines po-
tential component units for which the primary government is finan-
cially accountable and other organizations for which the nature and
significance of their relationship with the primary government are such
that exclusion would cause the primary government's financial state-
ments to be misleading or incomplete. Based on the application of


A COMPONENT UNIT OFTHE STATE OF FLORIDA











these criteria, the University of Florida is a component unit of the
State of Florida and its financial activity is reported in the State's Com-
prehensive Annual Financial Report by discrete presentation.

B. Blended Component Unit

Based on the application of the criteria for determining component
units, the University of Florida Healthcare Education Insurance Com-
pany (UFHEIC) is included within the University Board of Trustees'
reporting entity as a blended component unit. The UFHEIC was cre-
ated on September 1, 1994, as a self-insurance mechanism created pur-
suant to Section 1004.24, Florida Statutes. Although legally separate
from the University of Florida (the company's single share of stock is
owned by the Florida Board of Governors), the company's sole pur-
pose is to assist in providing liability protection for the University of
Florida Board of Trustees and its affiliated individuals and entities, and
is therefore reported as if it is part of the University.

C Discretely Presented Component Units

Based on the application of the criteria for determining component
units, certain affiliated organizations are included within the Univer-
sity Board of Trustees' reporting entity as discretely presented compo-
nent units. The University further categorizes its identified compo-
nent units as Direct-Support Organizations, Health Science Center
Affiliates and Shands Teaching Hospital and Others. Additional in-
formation on the University's component units, including copies
of audit reports, is available by contacting the University
Controller's Office.

D. Direct-Support Organizations

The University's direct-support organizations, as provided for in Sec-
tion 1004.28, Florida Statutes, and Rule 6C-9.011, Florida Adminis-
trative Code, are considered component units of the University of
Florida and therefore the latest audited financial statements of these
organizations are included in the financial statements of the University
by discrete presentation. These are separate, not-for-profit corpora-
tions organized and operated exclusively to assist the University to
achieve excellence by providing supplemental resources from private
gifts and bequests, and valuable education support services. The Stat-
ute authorizes these organizations to receive, hold, invest and adminis-
ter property and to make expenditures to or for the benefit of the Uni-
versity. An annual audit of each organization's financial statements is
conducted by independent certified public accountants. The annual
report is submitted to the Auditor General and the University Board of
Trustees. These not-for-profit corporations and their purposes are ex-
plained as follows:


University of Florida Foundation, Inc. solicits, collects, manages, and
directs contributions to the various academic departments and pro-
grams of the University and assists the University in fund raising, pub-
lic relations, and maintenance of alumni records.

University of Florida Research Foundation, Inc. promotes, encour-
ages, and assists research activities of the University through income
derived from or related to the development and commercialization of
intellectual properties, which include inventions, discoveries, processes,
and work products.

University Athletic Association, Inc. conducts various inter-collegiate
athletic programs for and on behalf of the University.

Gator Boosters, Inc. supports athletic activities at the University.


University of Florida Law Center Association, Inc. supports the Col-
lege of Law.

Florida Foundation Seed Producers, Inc. supplies Florida farmers and
producers with crop seed and nursery stock. This organization stocks
foundation seed of the best-known varieties acceptable to Florida cli-
mate and soils in adequate quantities and at reasonable prices.

Florida 4-H Club Foundation, Inc. promotes the educational objec-
tives of the Florida Cooperative Extension Service.

Florida Association of Basic Medical Scientists, Inc. promotes research

and education in the basic medical sciences. (dissolved June 14, 2004)


Southwest Florida Research and Education Foundation, Inc. provides
research and educational support to the University of Florida South-
west Florida Research and Education Center.

Citrus Research and Education Foundation, Inc. expedites citrus pro-
duction, propagates new plant materials, collects and analyzes envi-
ronmental impact research data, and provides research and education
support to the University of Florida Citrus Research and Education
Center at Lake Alfred.

Florida Leadership and Education Foundation, Inc. was formed to
further agriculture and natural resource education and related activi-
ties, promote agriculture and natural resources leadership, and make
contributions to and confer benefits upon the University.

Treasure Coast Agricultural Research Foundation, Inc. supports, en-
courages, and fosters research, education, and extension at the Insti-
tute of Food and Agricultural Sciences of the University on issues re-
lated to the citrus industry within the Indian River region.


flagshipidiscovery





NOTES TO THE FINANCIAL STATEMENTS


University of Florida Alumni Association, Inc. supports activities of
the alumni of the University of Florida.


E. Health Science Center Affiliates

The financial operations and financial position of several corporations
closely affiliated with the University of Florida J. Hillis Miller Health
Science Center (JHMHC) are considered to be component units of
the University of Florida and therefore the latest audited statements of
these organizations are included in the financial statements of the Uni-
versity by discrete presentation. The first seven corporations listed are
Faculty Practice Plans, as provided for in Rule 6C- 9.017, Florida Ad-
ministrative Code. The Faculty Practice Plans provide educationally-
oriented clinical practice settings and opportunities through which fac-
ulty members provide health, medical, and dental care to patients as
an integral part of their academic activities and their employment as
faculty. Because these faculty practice activities generate income, the
colleges are authorized to regulate fees generated from faculty practice
and maintain Faculty Practice Plans for the orderly collection and dis-
tribution of fees. These organizations provide significant support for
the clinical instruction function of the JHMHC. University of Florida
Health Services, Inc. and University of Florida Jacksonville Healthcare,
Inc., Health Services Support Organizations, as provided for in Rule
6C-9.020, Florida Administrative Code, engage in strategic alliances
and partnerships with non-academic entities, effecting managed care
contracting and provider network development for the JHMHC. Fac-
ulty Clinic, Inc. was originally organized to operate a multi-specialty
clinic. However, effective January 1, 1995, Faculty Clinic, Inc. was
restructured to operate as a facilities management company. Jackson-
ville Health Education Programs, Inc. operates the Borland Medical
Library in Jacksonville, Florida.


< Florida Clinical Practice Association, Inc.

SUF Jacksonville Physicians, Inc.

SFaculty Associates, Inc.

SFlorida Health Professions Association, Inc.

< UF College of Nursing Faculty Practice Association, Inc.

SUF College of Pharmacy Faculty Practice Association, Inc.

SFlorida Veterinary Medicine Faculty Association, Inc.

SUF Health Services, Inc. (dissolved June 21, 2004)

SUF Jacksonville Healthcare, Inc.

< Faculty Clinic, Inc. d.b.a. UF Faculty Clinic/Jacksonville

SJacksonville Health Education Programs, Inc.


F. Shands Teaching Hospital and Others

Shands Teaching Hospital and Clinics, Inc. (Shands) was incorpo-
rated October 15, 1979, as a not-for-profit corporation. Shands, a
major tertiary care teaching institution, is a leading referral center in
the State of Florida and the southeast United States and facilitates medi-
cal education programs at the University.


Shands entered into a contractual agreement, as of July 1, 1980, with
the State Board of Education of the State of Florida, as subsequently
restated and amended, which provides for the use of hospital facilities
at the JHMHC through December 31, 2030, with renewal provisions.
The contractual agreement also provides for the transfer to Shands of
all other assets and liabilities arising from the operation of the hospital
facilities prior to July 1, 1980. At termination of the contractual agree-
ment, the net assets of Shands revert to the State Board of Education.
Legal title to all buildings and improvements transferred to Shands
remains with the State of Florida during the term of the contractual
agreement. The contractual agreement provides for a 12-month grace
period for any event of default, other than the bankruptcy of Shands.
In addition, the contractual agreement limits the right of the State
Board of Education to terminate the contractual agreement solely to
the circumstance in which Shands declares bankruptcy and, in such
event, requires net revenues derived from the operation of the hospital
facilities to continue to be applied to the payment of Shands' debts.


Under the terms of the contractual agreement, Shands is obligated to
manage, operate, maintain, and insure the hospital facilities in support
of the programs of the JHMHC and further agrees to contract with
the State Board of Education for the provision of these programs. By
operation of law, the University of Florida Board of Trustees has be-
come the successor-in-interest to the State Board of Education.


Baby Gator Child Care Center, Inc. (the Center) was incorporated
October 19, 1970, under Section 1011.48, Florida Statutes, to estab-
lish and operate an educational research center for child development
for children of University of Florida students, faculty and staff. The
Center is funded primarily through fees paid by parents and an annual
allocation of funds from the Capital Improvement Trust Fund estab-
lished by the State Board of Education. In addition, the Center re-
ceives other governmental assistance. The Center uses a facility owned
by the University without charge. The University also provides other
services and support for the Center, some also without charge. The
Center's policy is to not record contributed facilities, services, and other
support in its financial statements.


UniversityVillage Apartments, Inc. (the Corporation) was established
in 1969, for the purpose of providing housing for low and moderate-


A COMPONENT UNIT OFTHE STATE OF FLORIDA











income families, especially those affiliated with the University of Florida.
Capital was contributed at inception by the University of Florida Foun-
dation, Inc., but no capital stock was issued because the Corporation
does not operate for the benefit of any special interest.


The Corporation provides housing under Section 221 (d) (3) of the Na-
tional Housing Act. The facility consists of twenty-eight two-story build-
ings regulated by the U. S. Department of Housing and Urban Devel-
opment (HUD) as to rent charges and operating methods. The
Corporation's major program is its Section 221 insured loan, which is
in the repayment phase. Legal title to the property is held by the
Corporation.

G. Basis of Presentation

The University's accounting policies conform to generally accepted ac-
counting principles applicable to public colleges and universities as
prescribed by the Governmental Accounting Standards Board (GASB).
The National Association of College and University Business Officers
(NACUBO) also provides the University with recommendations
prescribed in accordance with generally accepted accounting prin-
ciples promulgated by GASB and the Financial Accounting Stan-
dards Board (FASB).


In November 1999, the GASB issued Statement No. 35, Basic Finan-
cial Statements and Management's Discussion andAnalysis for Public
Colleges and Universities. This Statement includes public colleges and
universities within the financial reporting guidelines of GASB State-
ment No. 34, Basic Financial Statements and Management's Discus-
sion and Analysis for State and Local Governments. GASB Statement
No. 35 allows public colleges and universities the option of reporting
as a special-purpose government engaged in only business-type activi-
ties, engaged in only governmental activities, or engaged in both gov-
ernmental and business-type activities. The universities of the state uni-
versity system, including the University of Florida, elected to report as
entities engaged in only business-type activities. This election requires
the adoption of the accrual basis of accounting and entity-wide report-
ing including the following components:


Management's Discussion and Analysis

Basic Financial Statements:

1) Statement of Net Assets

2) Statement of Revenues, Expenses, and Changes in
Net Assets

3) Statement of Cash Flows

t Notes to the Financial Statements


The University of Florida is a component unit of the State of Florida
for financial reporting purposes. The financial balances and activities
included in these financial statements are, therefore, also included in
the State's Comprehensive Annual Financial Report.


H. Basis of Accounting

The basis of accounting refers to when revenues, expenses, and related
assets and liabilities are recognized in the accounts and reported in the
financial statements. Specifically, it relates to the timing of the mea-
surements made, regardless of the measurement focus applied. The
University's financial statements are presented using the economic re-
sources measurement focus and the accrual basis of accounting. Rev-
enues, expenses, gains, losses, assets, and liabilities resulting from ex-
change and exchange-like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets, and liabilities re-
sulting from non-exchange activities are generally recognized when all
applicable eligibility requirements, including time requirements, are
met. Auxiliary service departments account for interdepartmental
transactions as reductions of expenses and not revenues of those
departments.


The University's principal operating activities consist of instruction,
research and public service. Operating revenues and expenses generally
include all fiscal transactions directly related to these activities plus
administration, operation and maintenance of capital assets, and de-
preciation on capital assets. Included in nonoperating revenues are
State appropriations, investment income and revenues for capital
construction projects. Interest on asset-related debts is a nonop-
erating expense.


The University follows FASB Statements and Interpretations issued
on or before November 30, 1989, Accounting Principles Board Opin-
ions, and Accounting Research Bulletins, unless those pronouncements
conflict with GASB pronouncements.


The Statement of Net Assets is presented in a classified format to dis-
tinguish between current and noncurrent assets and liabilities. When
both restricted and unrestricted resources are available to fund certain
programs, grants, etc., it is the University's policy to first apply the
restricted resources to such programs followed by the use of the unre-
stricted resources.


The Statement of Revenues, Expenses, and Changes in Net Assets is
presented by major sources and is reported net of tuition scholarship
allowances. Tuition scholarship allowances are the differences between
the stated charge for goods and services provided by the University and


flagshipidiscovery





NOTES TO THE FINANCIAL STATEMENTS


the amount that is actually paid by a student or a third party making
payment on behalf of the student. The University applied "The Alter-
nate Method" as prescribed in NACUBOAdvisory Report 2000-05 to
determine the tuition scholarship allowances reported in the Statement
of Revenues, Expenses, and Changes in Net Assets. Under this method,
the University computes these amounts by allocating the cash pay-
ments to students, excluding payments for services, on a ratio of total
aid to the aid not considered to be third-party aid.


The Statement of Cash Flows is presented using the direct method and
is in compliance with GASB Statement No. 9, Reporting Cash Flow
for Proprietary and Non-expendable Trust Funds.

I. Capital Assets

University capital assets consist of land, buildings, infrastructure and
other improvements, furniture and equipment, property under capital
lease and lease improvements, library resources, works of art and his-
torical treasures, construction in progress, and other capital assets. These
assets are capitalized and recorded at cost at the date of acquisition or
at appraised value at the date received in the case of gifts or purchases
from the State Division of Surplus Property. Additions, improvements
and other outlays that significantly extend the useful life of an asset are
capitalized. Other costs incurred for repairs and maintenance are ex-
pensed as incurred. The University has a capitalization threshold of
$1,000 for all movable equipment items and a $100,000 threshold or
25% of the cost of the building for building renovations and improve-
ments. Depreciation is computed on the straight-line basis over the
estimated useful life of the related assets.


The following ranges of estimated useful lives were used to determine
depreciation expense:


Buildings/Improvements 20 to 50 years, depending on
construction

t Infrastructure and Other Improvements 12 to 50 years

t Leasehold Improvements 5 to 20 years or the term of the
lease, whichever is less

Furniture and Equipment

1) Equipment (non-office) 10 to 20 years

2) Computer Equipment 3 to 7 years

3) Moveable Equipment 3 to 20 years

Library Resources 10 years


J. Other Significant Accounting Policies

Other significant accounting policies are set forth in the financial state-
ments and subsequent notes hereafter.



2. CASH AND CASH EQUIVALENTS


The amount reported as cash and cash equivalents consists of cash on
hand and cash in demand accounts. Cash set aside to make debt ser-
vice payments, maintain sinking or reserve funds, and to purchase or
construct capital assets is classified as restricted. Cash in demand ac-
counts is held in banks qualified in accordance with the provisions of
Chapter 280, Florida Statutes, as a public depository. Deposits are fully
insured by Federal depository insurance or collateralized with securi-
ties held in Florida's multiple financial institution collateral pool re-
quired by Chapter 280, Florida Statutes. As of June 30, 2004, deposits
in foreign banks totaled $20,789.



3. INVESTMENTS


The University participates in investment pools through the State Trea-
sury and the State Board of Administration in accordance with the
provisions of Sections 17.61 and 215.49, Florida Statutes. These in-
vestment pools operate under investment guidelines established by Sec-
tion 215.47, Florida Statutes. The University's investments in these
pools are reported at market value.


Additionally as authorized by Section 1004.24(2), Florida Statutes,
and specifically authorized by the former Board of Regents in 1995,
the University has invested assets of the Health Science Center Self-
Insurance Program outside the State Treasury. These outside invest-
ments consist of instruments listed in Section 215.47, Florida Stat-
utes, and are reported at market value. The University has also received
donations of marketable securities. These securities are reported at
market value. Investments set aside to make debt service payments,
maintain sinking or reserve funds, and to purchase or construct capital
assets are classified as restricted.


Generally accepted accounting principles require the classification of
credit risk of investments into the following three categories:

Risk Category 1 Insured or registered, or securities held by the entity
or its agent in the entity's name.


Risk Category 2 Uninsured and unregistered, with securities held by
the counterpart's trust department or agent in the entity's name.


A COMPONENT UNIT OFTHE STATE OF FLORIDA












Risk Category 3 Uninsured and unregistered, with securities held by
the counterpart or by its trust department or agent but not in the

entity's name.


University investments in the investment pools managed by the State

Treasury and the State Board of Administration cannot be categorized
because the University's investments are not evidenced by specific, iden-

tifiable investment securities. Under the State Treasury's authority to
purchase and sell securities, it has entered into securities lending and
reverse repurchase agreements. A securities lending agreement is a loan
of securities for collateral with a simultaneous agreement to return the

collateral for the same securities in the future. A reverse repurchase
agreement is a sale of securities with a simultaneous agreement to re-


purchase them in the future at the same price plus a contract rate of
interest. As required by generally accepted accounting principles, the

University has reported investments and an offsetting current liability
totaling $123,489,263 in order to account for these transactions. Re-

quired note disclosures for these agreements are reported in the State's
Comprehensive Annual Financial Report.


Investments of the University at June 30, 2004, are shown in Table 1.


Investments held by the University's component units at June 30, 2004,

are reported at market value based on quoted market prices. These
investments are shown in Table 2.


United States Government and
Federally-Guaranteed Obligations
Federal Agency Obligations
Bonds and Notes
Stocks
Certificates of Deposits
Total Classified Investments

External Investments Pools:
Florida State Treasury
Florida State Board of Administration
Money Market and Mutual Funds

Total University Investments


$ $ 20,822,243 $


18,883
750,000
$768,883


3,774,745
14,658,775
19,169,770

$ 58,425,533 $


-$ 20,822,243

3,774,745
14,658,775
19,188,653
S 750,000
S 59,194,416


595,175,928
186,000
21.435.180

$675,991,524


.sTbl 0 COMPON*@NT NIT INESTENT


United States Government and Federally-
Guaranteed Obligations
Federal Agency Obligations
Commercial Paper
Bonds and Notes
Stocks
Certificates of Deposit
Total Classified Investments

Florida State Treasury
Investment Agreements
Real Estate Agreements
Money Market and Mutual Funds

Total Component Units Investments


$219,332,782 $



119,302,275
134,724,193
562,895
$473,922,145 $


$ 8,767,994 $ 228,100,776


2,174,253
79

$10,942,326


121,476,528
134,724,272
562,895
484,864,471

20,000,000
288,345,039
6,792,147
639,743,994

$1,439,745,651


flagshipidiscovery


Tvaes of Invest e


Types of lnvest s <.armory <.armory <.avenrv a rlarser vanse


i 1 Ilq LI] lkVll : l i'i IIkVi:lil=/ll


Table 1. UNIVERSITY INVESTMENTS I


P ......... "} M-..I.-, \/- I..-


T ...... I ............





NOTES TO THE FINANCIAL STATEMENTS


4. RECEIVABLES


A. Accounts Receivable

Accounts receivable reported in the Statement of Net Assets represent
amounts for student fees and various student services provided by the
University, various auxiliary services provided to students and third
parties, grant reimbursements from third parties and interest accrued
on investments.

B. Loans and Notes Receivable

Loans and notes receivable represent all amounts owed on promissory
notes from debtors, including student loans made under the Federal
Perkins Loan Program and other loan programs.

C. Allowances for Uncollectible Receivables

The University provides allowances for uncollectible accounts and loans
and notes receivable based upon management's best estimate of uncol-
lectible accounts and notes at fiscal year end, considering type, age,
collection history of receivables, and any other factors as considered
appropriate. Accounts receivable are reported net of an allowance of
$7,952,424 which is 10% of total related accounts receivable. Loans
and notes receivable are reported net of an allowance for uncollectible
loans and notes of $3,562,504 which is 9% of total related loans and
notes receivable.



5. DUE FROM AND TO PRIMARY

GOVERNMENT/COMPONENT UNITS


The University of Florida is a component unit of the State of Florida
(See note 1). The University's financial statements are reported for the
fiscal year ended June 30, 2004. The University's component units
financial statements are reported for their most recent fiscal year where
an audit report is available. In some cases, the fiscal year end is not
June 30, 2004. Accordingly, amounts reported by the component units
and the University as Due from and to Primary Government/Compo-
nent Units on the Statement of Net Assets may not agree.



6. INVENTORIES


Inventories have been categorized into the following two types:

A. Departmental Inventories Those inventories maintained by de-
partments and not available for resale. Departmental inventories are


comprised of such items as classroom and laboratory supplies, teach-
ing materials, and office supply items, which are consumed in the teach-
ing/work process. These inventories are normally expensed when pur-
chased and therefore are not reported on the Statement of Net Assets.

B. Merchandise Inventories Those inventories maintained which are
available for resale to individuals and/or other University departments
and are not expensed at the time of purchase. These inventories are
reported on the Statement of Net Assets and are valued at cost using
either the moving average method or the first-in, first-out method.



7. CAPITAL ASSETS


The activity of the University's major classes of capital assets for the
2003-04 fiscal year is presented in Table 3. Depreciation expense re-
ported on the Statement of Revenues, Expenses, and Changes in Net
Assets include net losses on disposition of capital assets and other mi-
nor adjustments totaling $12,068,415.



8. MUSEUM AND ART COLLECTIONS


The Florida Museum of Natural History, which is part of the Univer-
sity, maintains a depository of biological, geological, archaeological,
and ethnographic materials. The Museum's collections contain approxi-
mately 20,000,000 individual items, more than halfofwhich are cata-
logued, either individually or in lots. While many of the collections are
undoubtedly quite valuable and irreplaceable, the University has not
placed a dollar valuation on these items and, accordingly, the financial
statements do not include these assets.



9. LONG-TERM LIABILITIES


Long-term liabilities of the University include bonds and revenue cer-
tificates, installment purchase agreements, capital leases, compensated
absences and self-insured claims.

A summary of the University's long-term liability activity for the fiscal
year ended June 30, 2004, appears in Table 4.

A. Bonds and Revenue Certificates Payable

Bonds and revenue certificates were issued to construct University fa-
cilities, including parking garages, student housing, and academic and
student service facilities. Bonds and revenue certificates outstanding,


A COMPONENT UNIT OFTHE STATE OF FLORIDA
















*us^ legnnnl nLd UI IIIC UUHI IIH i I -C a eH IInIHIICH


Capital Assets, Nondepreciable:
Land
Construction in Progress
Works of Arts and Historical Treasures
Total Capital Assets, Non-Depreciable:

Capital Assets, Depreciable:
Buildings
Infrastructure and other Improvements
Furniture and Equipment
Library Resources
Property Under Capital Lease and
Lease Improvements
Works of Art and Historical Treasures
Other Capital Assets
Total Capital Assets Depreciable

Less Accumulated Depreciation for:
Buildings
Infrastructure and other Improvements
Furniture and Equipment
Library Resources
Property Under Capital Lease and
Lease Improvements
Works of Art and Historical Treasurers
Other Capital Assets
Total Accumulated Depreciation

Total Capital Assets, Depreciable, Net

Total Capital Assets, Net


$ 10,119,270
94,237,290
413,062
104,769,622


1,056,636,493
58,922,462
487,569,981
211,244,845
9,815,002

318,635
6,552,222
1,831,059,640


501,359,252
33,433,416
261,439,333
149,506,169
537,500

121,589
3.057.277
949,454,536


$ 404,000
108,675,164

109,079,164


61,195,348

80,681,220
10,055,571


200,135
26,041,201
178,173,475


46,789,752
1,614,610
50,012,069
12,305,754
75,000

39,582
1.186.578
112,023,345


$ 35,000
55,940,817

55,975,817


3,380,895
453,322
47,173,488
835,243


$ 10,488,270
146,971,637
413,062
157,872,969


1, 14,450,946
58,469,140
521,077,713
220,465,173
9,815,002


518,770
425,307 32,168,116
52,268,255 1,956,964,860


2,283,021

20,999,445
814,974



219.988
24,317,428


545,865,983
35,048,026
290,451,957
160,996,949
612,500

161,17 1
4.023.867
1.037.160.453


881,605,104 66,150,130 27,950,827 919.804.407

$ 986,374,726 $ 175,229,294 $ 83,926,644 $ 1,077,677,376


ITable.s ONG-TER LIABILITIES


Ending Current
o --I .. B --.. :- -


Capital Asset Related Debt:
Bonds and Revenue Certificates
Installment Purchase Agreements
Capital Leases

Total Capital Asset Related Debt

Other Liabilities:
Compensated Absences
Liability for Self-Insured Claims


$ 129,128,483
489,639
4,003,71 1


$ 5,947,802
646,885 365,425
68,927


$ 123,180,681
771,099
3,934,784


133,621,833 646,885 6,382,154 127,886,564


109,842,201 4,820,513
46,632,807 13,827,395


$ 5,904,347
316,009
73,373

6,293,729


14,662,714 7,129,355
6,379,734 54,080,468 8,938,462


Total Long-Term Liabilities $ 290,096,84 1






which include both term and serial bonds, are secured by a pledge of

housing rental revenues, traffic and parking fees and various student

fee assessments. The building fee and capital improvement fee, col-

lected as a part of tuition and remitted to the State Board of Educa-

tion, is used to retire the revenue certificates for the academic and stu-

dent service facilities.


$ 19,294,793 $ 12,761,888 $ 296,629,746


A summary of pertinent information related to the University's bond

indebtedness appears in Table 5.


Principal and interest requirements on the above bonded debt outstand-

ing as of June 30, 2004, appear in Table 6.


flagshipidiscovery


Beginning
--I .


Descrintion Ra n


Beginning
0 i,,


Ending
0 i,,


I Tale 3 CAPTAL SSET


il I_ ] eBi IL 1 M'I!iI"


A--:- n -j.-^-;----


$22,361,546





NOTES TO THE FINANCIAL STATEMENTS


B. Installment Purchase Agreements

The University has entered into several installment purchase agree-
ments for the purchase of equipment reported at $2,077,842. In Table

7 is a schedule of future minimum payments remaining under the agree-
ments at fiscal year end. The stated interest rates ranged from 1.82%

to 5.91%.


C. Obligations Under Capital Lease

On June 8, 1994, the former Board of Regents, on behalf of the Uni-
versity of Florida, entered into a lease agreement with the University of

Florida Foundation, Inc. (the Foundation), a direct-support organiza-

tion (component unit) of the University. Under the terms of the agree-
ment, the University agreed to lease from the Foundation a 607-space

parking garage (the garage) located near the Health Science Center
Administrative Offices for a period of thirty years beginning July 1,

1994. Lease payments of $100,000 annually are due each July 1. The
garage was simultaneously acquired by the Foundation from Shands

Teaching Hospital and Clinics, Inc. (Shands), also a component unit,
and financed by the Foundation through the issuance of a promissory

note secured by a non-recourse mortgage containing payment terms


similar to those in the lease agreement between the Foundation and
the University. Lease payments from the University to the Foundation
and from the Foundation to Shands were based on an original con-
struction cost of $3,000,000 and no interest. For reporting purposes,
the lease is considered a capital lease under Financial Accounting Stan-
dards Board (FASB) Statement No. 13, Accounting for Leases. The
initial obligation was discounted at an imputed interest rate of 6.45%
and was recorded at $1,382,470. The asset, "Leased Property Under
Capital Lease," was recorded at cost to Shands of $3,000,000.


On March 1, 2000, the University, acting for and on behalf of the
former Board of Regents, entered into a lease agreement with Shands.

Under the terms of the agreement, the University agreed to lease from
Shands an 800-space parking garage located near the Health Science

Center Administrative Offices for a period of thirty years beginning
March 1, 2000. Lease payments of $227,167 annually are due each

May 1, beginning May 1, 2001. Lease payment amounts were based
on an original construction cost of $6,815,002 and no interest. For

reporting purposes, the lease is considered a capital lease under FASB
Statement No. 13, Accounting for Leases. The initial obligation was

discounted at an imputed interest rate of 6.45% and was recorded at


I Table S.s BONDS REVENU1 CERIFIE P


Amount of
Original


Student Housing Bonds:
1959E
1959F
1974
1984
1993
1998
2000
Subtotal

Parking Garage Bonds:
1993
1998
Subtotal


$ 3,730,000
1,500,000
2,880,000
3,500,000
13,000,000
26,155,000
30,695,000
81,460,000


19,545,000
10.000,000
29,545,000


Total


$ 3,617,000
1,120,000
2,880,000
1,910,000
2,325,000
3,190,000
940,000
15,982,000


9,695,000
1,510,00
1 1,205,000


Academic and Student Services Facilities Bonds:
1997 11,349,317 2,110,747
1997A 4,723,765 317,434
1998 13,783,839 2,096,097
2001 4,259,373 255,277
2003A 12,359,757 1,453,730
Subtotal 46,476,051 6,233,285

Less: Unamortized Bonds Discounts

Add: Unamortized Bond Premium

Less: Unamortized Refunding Loss

Total Bonds and Revenue $ 157,481051 $ 33,420,285
Certificates


Amount Outstanding


$ 113,000
380,000

1,590,000
10,675,000
22,965,000
29,755,000
65,478,000


9,850,000
8,490,000
18,340,000


9,238,570
4,406,331
11,687,742
4,004,096
10.906.027
40,242,766

(1,347,416)

1,049,390

(582,059)

$ 123,180,681


$ 3,390
39,405

273,150
6,838,075
13,397,599
27,215,279
47,766,898


2,095,445
3.216.282
5,311,727


5,425,749
1,667,909
6,156,035
2,469,770
2,730,542
18,450,005


Bonds
Interest


Maturity


3.00%
3.00%
7.50%
3.00%
5.10 to 5.50%
4.10 to 5.00%
5.00 to 7.00%



4.625 to 5.00%
3.65 to 4.75%



5.00 to 5.625%
4.25 to 5.00%
4.00 to 5.00%
4.00 to 5.00%
3.00 to 5.00%


$71,528,630


A COMPONENT UNIT OFTHE STATE OF FLORIDA


Rond Series lan a


"---'"












STabl 6 BOND1- DI DEB OUTSlTANI N


-l 7. INTLMN PUCHS AGREMNT


Fiscal Year


Fndine luno TO e-runranal unrorner Total


Fiscal Year
Ending June 30


2005
2006
2007
2008
2009
2010-2014
2015-2019
2020-2024
2025-2029
2030
Subtotal
Less: Unamortized
Bond Discount
Plus: Unamortized
Bond Premium
Less: Unamortized
Refunding Loss


Total


$ 5,904,346
6,043,699
6,306,707
6,363,558
5,840,403
31,910,117
27,098,136
19,929,445
12,584,355
2.080.000
124,060,766
(1,347,416)


$ 6,191,125
5,912,972
5,622,581
5,315,932
5,035,876
20,698,853
13,302,538
6,851,667
2,487,886
109,200
71,528,630


1,049,390

(582,059)


$ 12,095,471
11,956,671
11,929,288
11,679,490
10,876,279
52,608,970
40,400,674
26,781,112
15,072,241
2.189.200
195,589,396
(1,347,416)


1,049,390

(582,059)


$123,180,681 $71,528,630 $194,709,311


$2,981,939. The asset, "Leased Property Under Capital Lease," was
recorded at cost to Shands of $6,815,002. A summary of pertinent

information related to the two capital leases appears in Table 8.


Principal and interest requirements on the above outstanding balances

are presented in Table 9.





Outstanding
Interest Original Balance At
Capital Leases Rate Ralances june 30, 2004

Shands Garage (607 spaces) 6.45% $ 1,382,470 $ 1,106,241
Shands Garage (800 spaces) 6.45% 2,981,939 2,828,543

Total $ 4.364,409 $ 3934,784







Fiscal Year
Fnding jinep 3T Principal InterPct Total


2005
2006
2007
2008
2009
2010-2014
2015-2019
2020-2024
2025-2029
2030

Total


$ 73,373
78,106
83,144
88,507
94,215
570,456
779,742
1,065,809
888,030
213,402

$ 3,934,784


$ 253,794
249,061
244,023
238,660
232,952
1,065,377
856,092
570,025
247,804
13,764

$ 3,971,552


$ 327,167
327,167
327,167
327,167
327,167
1,635,833
1,635,834
1,635,834
1,135,834
227,166

$ 7,906,336


$316,009
259,490
146,605
43,119
5 876


Total


$ 15,786
12,649
3,691
867
42


$331,795
272,139
150,296
43,986
5,918


771,099 33035 $804,134


D. Compensated Absences Liability

Employees earn the right to be compensated during absences for an-
nual leave (vacation) and sick leave earned pursuant to Rule 6C-5.920,

Florida Administrative Code; and pursuant to bargaining agreements

with the United Faculty of Florida. Leave earned is accrued to the credit
of the employee, and records are kept on each employee's unpaid (un-

used) leave balance. GASB Statement No. 16 requires that the Univer-
sity accrue a liability in the Statement of Net Assets for employees'

vested right to receive compensation for future absences when certain
conditions are met. At June 30, 2004, the total estimated liability for

annual, sick, and compensatory leave, which includes the University's
share of the Florida Retirement System and FICA contributions, is

$60,500,755, $53,906,943 and $255,016, respectively. The current

portion of the compensated absences liability is based on actual payouts
over the last three years, calculated as a percentage of those years' total

compensated absences liability. The University's total net assets bal-
ance at June 30, 2004, of $1,423,163,344 would have been

$1,537,826,058 had such liability for compensated absences not been
applied against it.





10. INTERDEPARTMENTAL AUXILIARY SALES


Interdepartmental sales between auxiliary service departments and other

institutional departments have been eliminated from expenses and rev-
enues for reporting purposes. The interdepartmental transactions elimi-

nated in the financial statement preparation totaled $78,667,078 for
the fiscal year ended June 30, 2004.




II.O OPERATING LEASES


The University has long-term commitments for assets leased under

operating lease agreements. These leased assets and the related com-
mitments are not reported on the University's Statement of Net Assets.


flagshipidiscovery


T^-l


P i i l i


rncpa nterest oa


L I





NOTES TO THE FINANCIAL STATEMENTS


Operating lease payments are recorded as expenses of the related funds
when paid or incurred, and are reported in the Statement of Revenues,
Expenses, and Changes in Net Assets. Outstanding commitments re-
sulting from these lease agreements are not considered material and are
contingent upon future appropriations.




12. FUNCTIONAL DISTRIBUTION OF

OPERATING EXPENSES


The operating expenses on the Statement of Revenues, Expenses, and
Changes in Net Assets are presented in the natural classifications. Table
10 presents those same expenses in functional classifications as recom-
mended by NACUBO. The functional classification (instruction, re-
search, etc.) is assigned to a department based on the nature of the
activity, which represents the material portion of the activity attribut-
able to the department. For example, activities of academic depart-
ments for which the primary departmental function is instruction may
include some activities other than direct instruction, such as research
and public service. However, when the primary mission of those de-
partments consists of instructional program elements, all expenses of
those departments are reported under the instruction classification.




Tasle 10. FUNCTIONAL EIXP0E


Amount
fhn (thnousnnsc


nctnrtiin


Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance of Plant
Scholarships and Fellowships
Auxiliary Operations
Loan Operating Expenses
Depreciation

Total Operating Expenses


$ 458,093
387,084
115,089
103,713
27,560
82,231
70,297
19,607
80,220
609
124,092

$ 1,468,595


13. CONSTRUCTION COMMITMENTS


A summary of major construction commitments of $1 million or more
at June 30, 2004, is presented in Table 11.


14. RETIREMENT PLANS


A. Florida Retirement System

Most employees working in regularly established positions of the Uni-
versity are covered by the Florida Retirement System, a State-adminis-
tered cost-sharing, multiple-employer, public employee defined ben-
efit retirement plan (Plan). Plan provisions are established by Chapters
121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes;
Chapter 238, Florida Statutes; and Florida Retirement System Rules,
Chapter 60S, Florida Administrative Code, wherein plan eligibility,
contributions, and benefits are defined and described in detail. Partici-
pating employers include all State departments, counties, district school
boards, universities and community colleges. Many municipalities and
special districts have elected to be participating employers. Essentially,
all regular employees of participating employers are eligible and must
enroll as members of the plan.


The Florida Legislature has reduced the vesting period from 10 to 6
years of service. Any member employed in a regularly established posi-
tion on July 1, 2001, with a total of 6 or more years of creditable
service will be considered vested. Former members who are not em-
ployed with a participating Plan employer on July 1, 2001, must re-
turn to covered employment for one year to become eligible for the
six-year vesting provision. An exception to this one-year requirement
applies to former members who are within one year of vesting under
the pre-2001 vesting requirements. These members will only be re-
quired to work the lesser of one year or the amount of time it would
have taken to vest in their class of membership prior to July 1, 2001.
All members are eligible for normal retirement benefits at age 62 or at
any age after 30 years of service, which may include up to 4 years of
credit for military service. The Plan also includes an early retirement
provision, but imposes a penalty for each year a member retires before
the specified retirement age. The Plan provides retirement, disability,
and death benefits, and annual cost-of-living adjustments, as well as
supplements for certain employees to cover social security benefits lost
by virtue of retirement system membership.


A Deferred Retirement Option Program (DROP), subject to provi-
sions of Section 121.091, Florida Statutes, permits employees eligible
for normal retirement under the Plan to defer receipt of monthly re-
tirement benefit payments while continuing employment with a Florida
Retirement System employer. An employee may participate in the
DROP for a period not to exceed 60 months after the participation
election date. During DROP participation, the deferred monthly ben-
efit accruing on behalf of the participant, plus interest compounded
monthly, is held in the Florida Retirement System Trust Fund. Upon


A COMPONENT UNIT OFTHE STATE OF FLORIDA


Funtin l;nthosads












I Table 1] ]11.1 MAJ.R C N TRUCIl 0iI 0 TENTSi1 i


Quarantine Facility-Indian River REC Renovations and Repairs
Security Lighting
Harn Sculpture Atrium
Orthopedics Surgery and Sports Medicine Institute
Murphree Residence Hall Electrical Upgrade
Law School
Diamond Village Renovation
Constans Theater Addition
ICBR Biotechnology Laboratory Pavilion
Genetic & Cancer Research Center
IFAS Gulf Coast REC Renovations and Repairs
Library West Addition and Renovation
IFAS Relocation and Construction Trust Fund
Holland Law Library Addition
Development and Upgrade of Active/Passive Recreational Facility
Utility/Infrastructure Improvements
2001-2002 Critical Deferred Maintenance
UMC-Shands Jacksonville Proton Beam Facility
2001-2002 Maintenance, Repairs, Renovations and Remodeling
Academic & Classroom Remodeling/Rehabilitation
Whitney Lab Marine Studies Classroom Complex & Auditorium
2002-2003 Maintenance, Repairs, Renovation
Balm Research and Education Center
Utilities Infrastructure Improvements/Capital Renewal
Murphree Hall Renovation
2003-2004 Maintenance, Repairs, Renovation


Total


$ 307,764,036 $ 124,935,344 $ 182,828,692


termination of employment, the participant receives the total
DROP benefits and begins to receive previously determined re-
tirement benefits.


The Plan's financial statements and other supplemental information
are included in the State's Comprehensive Annual Financial Report,

which is available from the State of Florida, Department of Financial
Services in Tallahassee, Florida. An annual report on the Plan, which

includes its financial statements, required supplemental information,
actuarial report, and other relevant information, is available from the

State of Florida, Division of Retirement in Tallahassee, Florida.



-Tab e 12.IFORIDA REI*EN* I S:I IIR1E


l~, -n DI~,


Dnvrnne ,t rnE,, f ,llvn


Florida Retirement System, Regular
Florida Retirement System, Senior Management Services
Florida Retirement System, Special Risk
Deferred Retirement Option Program-Applicable
to members from all of the above classes or plan


7.39%
9.37%
18.53%

9.11%


* Employer rates for each membership class include I. 10% for health insurance
subsidy (See Note 15) and 10% for administrative costs of the Public Employee
Optional Retirement,


The State of Florida establishes contribution rates for Plan members.

During the 2003-04 fiscal year, contribution rates for the employer are

presented in Table 12.


The University's liability for participation in the Plan is limited to the
payment of the required contribution at the rates and frequencies es-

tablished by law on future payrolls of the University. The University's
total contributions made to the Plan (none from employees) for the

fiscal years ended June 30, 2002, June 30, 2003, and June 30, 2004,
totaled $26,522,648, $21,097,988, and $25,100,999, respectively,

which were equal to the required contributions for each fiscal year.


B. State University System Optional Retirement
Program

Pursuant to Section 121.35, Florida Statutes, the Florida Legislature

created an Optional Retirement Program (Program) for eligible State
University System faculty and administrators. The Program, which

became effective July 1, 1984, was expanded in 1988 to include the
State University System Executive Service. The Program is designed to

aid the State university system in recruiting employees by offering more
portability to those employees who are not expected to remain in the

Florida Retirement System for six or more years.


flagshipidiscovery


Current


Commitment
"_1 ....


$ 3,889,000
2,531,003
5,411,577
26,929,41 1
2,975,556
7,697,458
6,580,393
10,629,823
6,000,000
73,848,700
1,500,000
25,441,000
12,188,083
9,968,000
1,700,000
19,856,881
6,580,340
29,693,926
9,526,563
1,075,485
1,075,485
8,114,801
6,791,108
6,500,000
9,650,000
I1,609,443


$ 3,753,012
2,440,148
853,798
18,184,178
2,827,439
5,770,919
6,218,928
7,654,868
684,036
8,773,836
1,329,427
2,772,383
6,615,676
6,602,366
1,223,367
17,610,862
4,666,491
9,921,642
8,686,210
96,212
57,337
3,772,865
2,581,705
35,624
392,043
1,409,972


135,988
90,855
4,557,779
8,745,233
148,117
1,926,539
361,465
2,974,955
5,315,964
65,074,864
170,573
22,668,617
5,572,407
3,365,634
476,633
2,246,019
1,913,849
19,772,284
840,353
979,273
1,018,148
4,341,936
4,209,403
6,464,376
9,257,957
10,199,471


Proiect Name Co e





NOTES TO THE FINANCIAL STATEMENTS


The Program is a defined contribution plan, which provides full and
immediate vesting of all contributions submitted to the participating
companies on behalf of the participant. Employees in eligible posi-
tions can make an irrevocable election to participate in the Program
rather than the Florida Retirement System, and purchase retirement
and death benefits through contracts provided by certain insurance
carriers. The employing university contributes on behalf of the partici-
pant an amount equal to 10.43% of the participant's gross monthly
compensation. A small amount remains in the Optional Retirement
Program Trust Fund for program administrative costs. The remaining
contribution is invested in the company or companies selected by the
participant to create a fund for the purchase of annuities at retirement.
The participant may contribute by salary deduction an amount not to
exceed the percentage contributed by the University to the participant's
annuity account.


There were 4,671 University participants during the 2003-04 fiscal
year. Required contributions made to the Program totaled $29,269,664,
including $14,700,043 from employee contributions, on a covered
payroll of $292,167,250.

C. Public Employee Optional Retirement
Program

Pursuant to Section 121.4501, Florida Statutes, effective June 1, 2002,
the Florida Legislature created a Public Employees Optional Retire-
ment Program (PEORP), also known as the Florida Retirement Sys-
tem (FRS) Investment Program. The program is a defined contribu-
tion plan, sponsored by the State of Florida, available as an option to
the FRS and is self-directed by the employee. University employees
already participating in the State University System Optional Retire-
ment Program or the DROP are not eligible to participate in this pro-
gram. With each biweekly pay period, the University contributes a
percentage (same as FRS rate) of the participating employees' earnings
to an annuity plan. Pension benefits are determined by the dollars in
the account at the time of retirement.


There were 606 University participants during the 2003-04 fiscal year.
Required contributions made to the PEORP totaled $1,223,754.

D. Institute of Food and Agricultural Sciences
Supplemental Retirement

In 1984, the Florida Legislature enacted the Institute of Food and
Agricultural Sciences Supplemental Retirement Act to provide a supple-
ment to the monthly retirement benefit being paid under the Federal
Civil Service Retirement System to retirees of the Institute of Food
and Agricultural Sciences (IFAS) at the University of Florida. The


supplement is designated for IFAS cooperative extension employees
employed before July 1, 1983, who are not entitled to benefits from
either a State-supported retirement system or social security based on
their service with IFAS. It was intended to compensate these IFAS
employees for the difference between their Civil Service benefit and
the benefits a FRS member receives, which include a social secu-
rity benefit. No additional persons can become eligible for this
supplement.


Employee contributions were $509,457 and employer contributions
were $1,518,725. For the 2003-04 fiscal year, the University's covered
payroll was $5,899,086 for 99 employees.

E. Other Retirement Programs

Other retirement programs include the Florida Teacher's Retirement
System and the U.S. Civil Service Retirement System. Five employees
were covered by the Florida Teacher's Retirement System during the
2003-04 fiscal year. Employer contributions were $43,185, and em-
ployee contributions were $22,937 on a covered payroll of $405,758.
Eighteen employees were covered by the U.S. Civil Service Retirement
System during the 2003-04 fiscal year. Employer contributions were
$99,219, and employee contributions were $99,219 on a covered pay-
roll of $1,175,671.



15. POST-EMPLOYMENT BENEFITS


Pursuant to Section 112.363, Florida Statutes, the Florida Legislature
established the Retiree Health Insurance Subsidy (HIS) to assist retir-
ees of all State-administered retirement systems in paying health insur-
ance costs. During the 2003-04 fiscal year, the HIS program was funded
by required contributions consisting of 1.11% assessed against the pay-
roll for all active employees covered in State-administered retirement
systems. This assessment is included in the Florida Retirement System
contribution rates presented in Table 12.


Eligible retirees, spouses, or financial dependents under any State-ad-
ministered retirement system must provide proof of health insurance
coverage, which can include Medicare. During the 2003-04 fiscal year,
participants received an extra $5 per month for each year of creditable
service completed at the time of retirement; however, no eligible re-
tiree or beneficiary may receive a subsidy payment of more than $150
or less than $30. If contributions fail to provide full subsidy benefits to
all participants, the subsidy payments may be reduced or canceled.


A COMPONENT UNIT OFTHE STATE OF FLORIDA











16. RISK MANAGEMENT PROGRAMS


A. State Self-Insurance Funds

In accordance with a program for central insurance purchases adopted
by the Florida Cabinet in 1969, the Department of Management
Services has authority to purchase insurance on behalf of all State
agencies. This authority was granted with the enactment of Section
287.022, Florida Statutes. Other actions by the Legislature have re-
sulted in the development of State self-insurance funds providing
hazard insurance for property and casualty insurance for State em-
ployees workers' compensation, general liability, and fleet automo-
tive liability. The University participates in these programs. Property
losses in excess of $2 million are commercially insured up to $200
million per loss event. Payments on tort claims are limited to $100,000
per person and $200,000 per occurrence as set by Section 768.28,
Florida Statutes. Calculations of premiums consider the cash needs
of the program and the amount of risk exposure for each participant.
There have been no significant reductions in insurance coverage from
the prior year coverage. Settlements have not exceeded insurance
coverage during the past three years.


University employees may obtain health care services through par-
ticipation in the State's group health insurance plan or through mem-
bership in a health maintenance organization plan under contract
with the State. The State's risk financing activities associated with
State group health insurance, such as risk of loss related to medical
and prescription drug claims, are administered through the State
Employees Group Health Insurance Trust Fund. It is the practice of
the State not to purchase commercial coverage for the risk of loss
covered by this Fund. Additional information on the State's group
health insurance plan, including the actuarial report, is available from
the State of Florida, Department of Management Services, Division
of State Group Insurance in Tallahassee, Florida.

B. University Self-Insurance Programs

The J. Hillis Miller Health Science Center (JHMHC) Self-Insurance
Program and the University of Florida JHMHC/Jacksonville Self-
Insurance Program were established pursuant to Section 1004.24,
Florida Statutes. The Self-Insurance Programs are used to account for
a program of general and professional liability protection for the
University of Florida Board of Trustees acting as the six health col-
leges of the JHMHC, including the Student Health Service Auxiliary
and the Veterinary Medical Teaching Hospital. Hospital professional
liability protection, including patient general liability, is provided to
Shands Teaching Hospital and Clinics, Inc., Shands Jacksonville


Medical Center, Inc., the Shands community hospitals in Starke, Lake
City and Live Oak, and other statutorily permitted entities, which
voluntarily participate in the Self-Insurance Programs. The University
of Florida Board of Trustees is protected for losses, which are subject
to Section 768.28, Florida Statutes, including legislative claims bills,
which in combination with the waiver of immunity limits described
in Section 768.28, Florida Statutes, do not exceed $1 million per claim.
The Self-Insurance Programs provide $2 million per-claim protection
for the participants, which are not subject to the provisions of Section
768.28, Florida Statutes. The per-claim limit of liability protection
for the participants does not exceed $2 million per claim in the
event more than one protected entity is involved in the same claim
or action.


Pursuant to the authority of Rule 6C-10.001(2), Florida Administra-
tive Code, the University of Florida Self-Insurance Program Councils
have created the University of Florida Healthcare Education Insur-
ance Company (HEIC), a captive insurance company which is wholly
owned by the Florida Board of Governors and which is domiciled in
the State of Vermont. HEIC is managed by a Board of Directors cre-
ated by the Florida Board of Governors. HEIC provides $57 million
per-claim and in the aggregate, which is excess of $1 million per each
and every claim on a claims-made basis for losses, which are in excess
of the protections afforded by the Self-Insurance Programs. The ex-
cess insurance is paid to claimants on a first come-first serve basis.


HEIC retains limits of $1 million each and every claim and $5 mil-
lion each claim and in the aggregate in excess of the protection af-
forded by the Self-Insurance Programs and fully reinsures the $52
million per claim and in the aggregate coverage in excess thereof.


Claims settlement and adjustment expenses are accrued as expenses
and liabilities of the University of FloridaJHMHC Self-Insurance Pro-
gram, inclusive of the University of Florida JHMHC Self-Insurance
Program (Gainesville), the University of Florida JHMHC/Jackson-
ville Self-Insurance Program and University of Florida Healthcare Edu-
cation Insurance Company, for the estimated settlement value of claims
reported as a "Liability for Self-Insured Claims." The estimated settle-
ment value of claims was determined on the basis of the judgment
and experience of management and the Self-Insurance Program Coun-
cils through a case-by-case review. Estimated losses from incurred
but unreported incidents are accrued based upon the findings of
casualty actuaries.


The amount of "Liability for Self-Insured Claims" accrued for the
Self-Insurance Program at June 30, 2004, was $54,080,468 for com-


flagshipidiscovery





NOTES TO THE FINANCIAL STATEMENTS


/ Table 13. 0LTY FOR* S -IN SUE CLAI I


Claims Liabilities Current Claims/
Beginning of Changes in
YaSr Fctimtac ClimC PSvymnt


$ 38,482,628
$ 46,632,807


Claims
Liabilities
Fnrl nf Yar


$ 18,666,592 $(10,516,413) $46,632,807
$ 13,827,395 $ (6,379,734) $ 54,080,468


pensatory losses and for allocated expenses. The "Liability for Self-
Insured Claims" was accrued at an undiscounted present value.


The aggregate amount of claims liabilities for which annuity contracts
have been purchased in the claimants' names and for which the re-
lated liabilities have been removed from the Statement of Net Assets
totals $45,000 for the Self-Insurance Program as of June 30, 2004.
These annuities have been assigned to third parties, and all claimants
have fully and completely released trust fund participants from all ac-
tual and contingent liability.


Changes in the balances of claims liabilities for the Self-Insurance Pro-
gram during the fiscal years ended June 30, 2003, and June 30, 2004,
appear in Table 13.




17. CONTINGENT LIABILITIES


The University is involved in several pending and threatened legal
actions. The range of potential loss from all such claims and actions,
as estimated by the University's attorney and management, should not
materially affect future operations and the financial condition of the
University.


18. COMPONENT UNITS


Summary financial information from the most recent available au-
dited financial statements of direct-support organizations and other
component units of the University of Florida, as mentioned in note 1,
is presented on the following pages in Tables 14, 15 and 16.




19. SEGMENT INFORMATION


A segment is an identifiable activity (or grouping of activities), that
has one or more bonds or other debt instruments outstanding, with a
revenue stream pledged in support of that debt. In addition, the activity's
revenues, expenses, gains and losses, assets, and liabilities are required
to be accounted for separately. The following financial information
represents identifiable activities of the University for which one or more
bonds or other debt instruments are outstanding. Transportation and
Parking Services provides the University with safe and adequate park-
ing facilities. Several parking garages have been constructed from the
proceeds of revenue-backed debt instruments. The Division of Hous-
ing provides safe, affordable living space for students of the University
of Florida. Several revenue bonds have been issued over the years to
provide funding for the construction of facilities to house students of
the University. A summary of the financial activity for these segments
is presented in Table 17.


A COMPONENT UNIT OFTHE STATE OF FLORIDA


niF al Year


2002-03
2003-04


Rgral Ypar Yer Fqfimata .Cla"mc Pa-mpt Fnd of Yea














(amounts expressed in thousands)


CONDENSED STATEMENT OF NET ASSETS
Assets
Due from Primary Government/Component Units
Other Current Assets
Capital Assets, Net
Other Noncurrent Assets


Total Assets


Liabilities
Due to Primary Government/Component Units
Other Current Liabilities
Noncurrent Liabilities


Total Liabilities


Net Assets
Invested in Capital Assets, Net of Related Debt
Restricted Endowment
Restricted Other
Unrestricted


$ 39,879
35,579
27,215
936,400


1,039,073


56,569
10,434
31,578


98,581



5,881
660,082
257,176
17,353


$ 50,199 $ 4,072
20,013 36,623
124,002
97,988 29,460


168,200



10,087
31,382
35,000


76,469








91,731


$ 4,863
879
58
407


194,157





44,443
79,273


123,716



46,573


353
23,515


5,236 3,389


Total Net Assets


940492 $ 91,731 $ 70,441 $ 4,776


$5,085 $ 2,651


CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
Operating Revenues $
Operating Expenses


52,272 $ 70,817 $ 39,568 $ 27,696 $ 632 $ 1,282
(8629 (85866) (62,030) (2631 (894 (1,393)


(34,018) (15,049) (22,462)


Nonoperating Revenues (Expenses)
Investment Income (Loss)
Addition to Permanent Endowments
Other
Transfers from/(to) Component Units


I 11,285
83,879
(176)
(1.498)


Change in Net Assets


159,472


Net Assets, Beginning of Year


Net Assets, End of Year


9,472


1,538



(4,039)


95,770


3,785


(1,269)
28,626


8,680


25,065



677
15


(25,330)


427


4 349


$ 940,492 $ 91,731 $ 70,441 $ 4,776


$5,085 $ 2,651


flagshipidiscovery


University
of Florida
Foundation


University
of Florida
Research
Foundation
I ^nIlnnA


University
of Florida
Athletic
Association
Zl~nrlnn*


Gator
Boosters
I ^nIlnnA


University
of Florida
Law Center
Association


Florida
Foundation
Seed
Producers
I I^~nAI^A


$ 4,570
85


Operating Income (Loss)


4 002103/6 6/30 4






NOTES TO THE FINANCIAL STATEMENTS


Treasure Coast
Agricultural
Research
Foundation
4 002!03!60


University
of Florida
Alumni
Association
I 0n!lnnA


Total
Direct
Support


$ 107,153
97,892
152,500
1,064,976


1,422,521


68,313
87,368
145,900


301,581


53,737
669,293
261,319
136,591


462


$ 171 $ 1,891


$ 95

(81


14


$ 1,623
(1,726)


$ 35 $ $ 1,120,940


$ II


(103)


157 1.959


$ 171


$ 1,891


$ 1,441 $ 196,930
(2,939) (245,317)


(1,498)


34


$ 35


A COMPONENT UNIT OFTHE STATE OF FLORIDA


Florida
4-H Club
Foundation
4 002I I^AA


Florida
Assoc. of
Basic Medical
Scientists
4 002!03!6


Southwest
Fla. Research
and Education
Foundation
4 002!03!6


Citrus
Research and
Education
Foundation
A0l2lnn04


Florida
Leadership
& Education
Foundation
I 002 I 1'^A


$ 2,057
1,323


3,520


$ 1,513
838


2,351





460


$ 3,492


$ 175


$ 1,464
(1,434)


$ 29
(23)


-2


32



393


3,099


$ 3,492


6


169


$ 175


(48,387)



126,145
83,913
350
3,275


165,296


955,644


$ 1,120,940


61301200


rvanza ons


"'''""" """' """ """'"""













(amounts expressed in thousands)
Florida
Florida University Health Nursing
Clinical of Florida Professions Faculty
Practice Jacksonville Faculty Association Practice
Association Physicians Associates (Unaudited) Association
6/30/2004 6/30/2004 6/30/2004 6/30/2004 6/30/2004


CONDENSED STATEMENT OF NET ASSETS
Assets
Due from Primary Government/Component Units $ 9,421 $ 2,629 $ 723 $ 278 $ 47
Other Current Assets 48,451 46,671 4,128 2,107 3,256
Capital Assets, Net 4,124 5,756
Other Noncurrent Assets 29,227 149


- Total Assets 91,223 55.205 4.851 2.385 3.303
o
c7)

C Liabilities
r Due to Primary Government/Component Units 6,271- -
O
a. Other Current Liabilities 12,687 15,415 680 478 25
c Noncurrent Liabilities 13.337 12.940 27 1.267
<
u Total Liabilities 26,024 34.626 707 1.745 25
Z

EL Net Assets
_j
2< Invested in Capital Assets, Net of Related Debt 3,905 (6,384)
Z Restricted-Other
Z Unrestricted 61,294 26.963 4.144 640 3.278


STotal Net Assets $ 65,199 $ 20,579 $ 4,144 $ 640 $ 3,278


CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
Operating Revenues $206,690 $158,262 $15,982 $7,748 $ 753
Operating Expenses (163,769) (136,054) (9,409) (3,854) (347)


Operating Income (Loss) 42,921 22,208 6,573 3,894 406


Nonoperating Revenues (Expenses)
Investment Income (Loss) 112 117 13 21 17
Other (47,934) (19,964) (6,429) (4,877) (110)
Transfers from/(to) Component Units 22,529 7,569 653 4 (3)
Change in Net Assets 17,628 9,930 810 (958) 310


Net Assets, Beginning of Year 47,571 10,649 3,334 1,598 2,968


Net Assets, End of Year $ 65,199 $ 20,579 $ 4,144 $ 640 $ 3,278


flagshipidiscovery





NOTES TO THE FINANCIAL STATEMENTS








Jacksonville
Pharmacy Veterinary University University Health Total
Faculty Medicine of Florida of Florida Education Health
Practice Faculty Health Jacksonville Faculty Programs Science
Association Association Services Healthcare Clinic (Unaudited) Center
6/30/2004 6/30/2004 6/30/2004 6/30/2004 6/30/2004 9130/2003 Affiliates




$ 938 $ 191 $ $ 106 $ $ $ 14,333
153 3,025 1 160 3,534 339 1 1,825
2,180 4,752 16,812
130 29506


1.091 3.216 1 2.446 8.416 339 172.476



422 1,044 29 7,766
33 434 1 1,034 123 4 30,914
6700 34,271


33 856 I 2,078 6,852 4 72,951



2,179 (1,948) (2,248)
1,500 1,500
1.058 2360 (181 2012 335 100,273


$ 1,058 $ 2,360 $ $ 368 $ 1,564 $ 335 $ 99,525





$ 47 $ 6,130 $ -$ 302 $ 418 $ 98 $396,430
(645) (679) 4 (11,853) (1,169) (113) (327,888)


(598) 5,451 4 (11,551) (751) (15) 68,542



25 33 25 4 367
(5,415) (162) (84,891)
606 2 1,550 925 43835
33 69 6 (I) 37 (I I) 27,853


1.025 2.291 (6) 369 1,527 346 71,672


$ 1,058 $ 2,360 $ $ 368 $ 1,564 $ 335 $ 99,525


A COMPONENT UNIT OFTHE STATE OF FLORIDA














(amounts expressed in thousands)


CONDENSED STATE OF NET ASSETS
Assets
Due from Primary Government/Component Units
Other Current Assets
Capital Assets, Net
Other Noncurrent Assets


Total Assets


$ 5,263
392,826
568,267
302,982


1,269,338


o Liabilities
0
Due to Primary Government/Component Units
O Other Current Liabilities
C] Noncurrent Liabilities
-J

Total Liabilities
U
Z
Z Net Assets
Z
Lu Invested in Capital Assets, Net of Related Debt
Z Restricted Other
Z
< Unrestricted


$ 261
154
41


456 1.949


3,738
160,646
525,584


689,968



108,823
1,136
2,132
467,279


O Total Net Assets 579,370


46
199
851


1,096



95



758


$ 853


$ 397


$ 5,602
393,136
569,357
303,648


1.271.743



3,784
160,904
526,435


691,123



108,959
1,136
2,132
468,393


$ 580,620


CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
Operating Revenues'
Operating Expenses


$ 1,315,740
(1,192,189)


$ 895
(897)


$ 1,097
(924)


$ 1,317,732
(1.194.010)


Operating Income (Loss)


Nonoperating Revenues (Expenses)
Investment Income (Loss)
Addition to Permanent Endowments
Other
Transfers from/(to) Component Units


Change in Net Assets


Net Assets, Beginning of Year


Net Assets, End of Year


502,967


504,065


$ 579,370 $ 397 $


853 $ 580,620


flagshipidiscovery


Shands
Teaching
Hospital
& Clinics
6/30/2004


Baby Gator
Childcare
Center
6/30/2004


University
Village
Apartments
6/30/2004


Total
Shands
Teaching
Hospital
and Others


123,551


123,722


9,208
23
(9,962)
(46,417)


76,403


9,219
23
(9,992)
(46,417)


76,555





NOTES TO THE FINANCIAL STATEMENTS


Transportation
and Parking Services Division of Housing

CONDENSED STATEMENT OF NET ASSETS
Assets
Current Assets $ 4,731,025 $ 15,075,504
Capital Assets, Net 34,4 1,789 64,813,714
Other Noncurrent Assets 2.794.523 8,816,139

Total Assets 41.937.337 88,705,357

Liabilities
Current Liabilities 5,658,538 5,497,756
Noncurrent Liabilities 20,527,262 64,695,591

Total Liabilities 26,185.800 70,193,347

Net Assets
Invested in Capital Assets, Net of Related Debt 12,106,154 3,293,048
Restricted 2,669,523 8,440,524
Unrestricted 975.860 6,778,438

Total Net Assets $ 15,751,537 $ 18,512,010

CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
Operating Revenues (Expenses):
Operating Revenues $ 13,025,213 $ 32,669,563
Depreciation Expense (1,848,558) (2,726,185)
Other Operating Expenses (8.847.734) (23,940,169)

Operating Income (Loss) 2,328,921 6,003,209

Nonoperating Revenues (Expenses):
Investment Income 144,721 2,478,566
Interest Expense (1,149,287) (3,495,441)
Other (1,210,336) 46,707
Capital Related Expenses -(2,796,458)
Transfers 541,350 3,082,909

Net Nonoperating Revenues (Expenses) (1,673,552) (683,717)

Change in Net Assets 655,369 5,319,492

Net Assets, Beginning of Year 15,096,168 13,192,518

Net Assets, End of Year $ 15,751,537 $ 18,512,010

CONDENSED STATEMENT OF CASH FLOWS
Net Cash Provided (Used) by:
Operating Activities $ 4,214,405 $ 8,358,746
Noncapital Financing Activities (1,283,039) (173,672)
Capital and Related Financing Activities (4,194,565) (9,095,808)
Investing Activities 1,629,779 3,808,858

Net Increase (Decrease) in Cash and Cash Equivalents 366,580 2,898,124

Cash and Cash Equivalents, Beginning of Year 153,304 I 1,910,892

Cash and Cash Equivalents, End of Year $ 519,884 $ 14,809,016


A COMPONENT UNIT OFTHE STATE OF FLORIDA












IFIINANCIAL 3 3 A3ID. A MEDIfor- =- the --a Ya E e I g *gi ..


2003-04
Number of


Federal Programs
Pell Grants
Supplemental Educational Opportunity Grants
Perkins Student Loans
Health Professions Student Loans (PCL, LDS, HPSL)
Direct Loans


Total Federal Financial Aid Administered


State Programs
Loans:
University of Florida Short Term Loans


1t-
9 Student Aid For Education (SAFE) Loans
D University of Florida Long Term Loans
_4 Total Loans Administered
1-
0
O
C0 Scholarships and Grants:
S Racing
< State of Florida Financial Aid Programs
U Lottery Trust Grant Funded Waivers
Z
< Total State Scholarships and Grants Admini
Z
ui-
_j Total State Financial Aid Administered


Z Other Scholarships and Grants
Z
4 Institutional Grants:
S College Awarded Scholarships
Graduate Need-Rased ScholarshiD Waiv


stered


ers


Graduate Tuition Remission Waivers
General Scholarships
Total Institutional Grants


Custodial Scholarships:
Tuition, Trusts, Clubs, Service Organizations, etc.


Total Other Scholarships and Grants


Fee Waivers
Non-Resident Tuition Waivers
Other Waivers


Total Fee Waivers Administered


Total Financial Aid Administered


flagshipidiscovery


Aid


8,491
2,547
2,734
94
21,159


$ 21,670,919
2,337,474
7, 10,374
743,342
145,927,158


$ 177,789,267


956
41
593
1,590



410
28,732
532
29,674


$ 800,243
67,209
731,901
1,599,353



465,938
62,742,406
1,3 17,111
64,525,455


$ 66,124,808


13,722


10,294
5,706
29,722


$ 30,536,672


15,397,948
10,966,560
56,901,180


7,266,088


34,466



4,193
8,383


$ 64,167,268



$ 20,783,329
18,337,283


$ 39,120,612


$ 347,201,955


s tneipiceR Dis d

























UF Presidential Inauguration 2004


The Universirv ot Floiida 2003-20-04 Annual Financial Repot va.is
prepared by the Finance and Accounring Division of lie Office for
Finance and Adminisin aon

University of Florida Editing, Overview, and Feature Writing
Universiry of Florida Office of Universitr Relations
K. A. Crooks, Ph.D.


Art Direction and Design
ULniversirv of Florida Office of Ne\,s c& Publi
Ml-da lamiceli

Photography
Uni\versirv of Florida Office of Ne\s, c Publi
Ray Caison and Klisren Bartler
Unixversirv of Florida College of Engineeiing
David Blankenship
Allen Chevionr, Chei\ront Studios


c Affairs


c Affairs















































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Gaiesill, lorda3261020
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