• TABLE OF CONTENTS
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 Front Cover
 Table of Contents
 Foreword
 A message from the President
 Introduction from the Vice President...
 Overview
 Report of independent auditors
 Management's discussion and...
 Statement of net assets
 Statement of revenues, expenses,...
 Statement of cash flows
 Notes to the financial stateme...
 Supplemental information
 Administrators
 Back Cover






Group Title: University of Florida Annual Financial Report. 2000-2001.
Title: University of Florida Annual Financial Report. 2006-07.
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 Material Information
Title: University of Florida Annual Financial Report. 2006-07.
Series Title: University of Florida Annual Financial Report
Physical Description: Serial
Language: English
Creator: Finance and Accounting Division
Publisher: Office of Administrative Affairs, University of Florida
Publication Date: 2007
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Volume ID: VID00008
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Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Foreword
        Page 1
    A message from the President
        Page 2
        Page 3
    Introduction from the Vice President for Business Affairs
        Page 4
        Page 5
    Overview
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
    Report of independent auditors
        Page 16
    Management's discussion and analysis
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Statement of net assets
        Page 22
    Statement of revenues, expenses, and changes in net assets
        Page 23
    Statement of cash flows
        Page 24
    Notes to the financial statements
        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
        Page 44
        Page 45
        Page 46
        Page 47
    Supplemental information
        Page 48
    Administrators
        Page 49
    Back Cover
        Page 50
Full Text

























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Introductions


Introduction from
the President,
J. Bernard Machen


fsustainability wasn't on your radar before, you could hardly avoid it this past year.

The governors of New York, California and Florida all announced major new policies
to boost energy efficiency and reduce pollution. Gas topped $3 per gallon and stayed there.
Predictions about global climate change grew even more alarming. Suddenly, it seemed,
reducing the human footprint on the earth's fragile ecosystems took front and center stage
in our national public policy debate.

Fortunately, the University of Florida is ahead of the pack in this area. Thanks to the work
of the UF Sustainability Committee and the Office of Sustainability, what began as a small
movement among a handful of faculty and graduate students in the mid-1990s has in recent
years become a university-wide campaign.

I want to focus on our achievements in sustainability over the past year and on the chal-
lenges that lie ahead.

Broadly defined, sustainability means meeting the needs of the present without compromis-
ing the ability of future generations to provide for themselves. Achieving sustainability or
making progress toward that goal involves rethinking everything we do, from the energy
we consume to the food we eat to how we get around.

We made advancements in all those goals plus other areas this past year.

We expanded our purchase of locally grown foods important because it cuts transporta-
tion miles for food trucked to our campus and helps us support local workers and the local
economy. As much as 30 percent of the food served at two popular UF dining halls, Fresh
Foods and Gator Corner, is now locally grown or produced.

We continued to "green" our buildings. So far we have eight buildings that meet national
Leadership in Energy and Environmental Design, or LEED, standards. We are submitting
four others for certification, while six new buildings under construction are expected to be
LEED green buildings. Meanwhile, we installed a living "green roof" above the new Perry
Construction yard.

We continued to slim down our carbon quotient related to transportation. Today, our
fleet includes 9 electric vehicles, 18 hybrids and 83 flex-fuel vehicles. Meanwhile, nearly
300 people participate in the car-share program Flexcar and the use of our bus system has
climbed to an amazing 9 million rides a year.

We have scored achievements in other areas, as well. On our grounds, visiting butterflies
can now flit to no less than 12 butterfly gardens. We reprocess more than 300 gallons of
used cooking oil into biodiesel monthly, with plans to scale this amount up to 1,600 gal-
lons soon. As part of our new game-day recycling program, we collected more than 26,000
pounds ofrecyclables in the first four football games alone. We also were the first university
in the nation to seek to make a football game, UF versus FSU, carbon neutral by offsetting
the carbon with forested land.


A Component Unit ofthe State of Florida






2006-07 Annual Report


So, our grounds, buildings and transportation are greener this year. All of this moves us
forward in this grand endeavor. But we have a problem, which is that we don't yet have a
precise idea where we are headed. The more we answer the easy questions, the more obvious
the harder ones become.

How sustainable, really, do we want this university to become? We need to think this
through carefully. What changes are we willing to accept with regard to cars, scooters or
buses on campus?

New York City Mayor Michael Bloomberg has proposed an $8 congestion fee for cars entering
Manhattan. Might we want a car-free campus core here at UF? What about our comfort level
when it comes to air temperature, water consumption, lighting and building materials?

What are we willing to spend on conservation or environmental upgrades compared with
classrooms and other physical infrastructure? We have seen some interest among students
this year in making UF's investments more transparent. How much weight do we want to
give sustainability in our investment decisions?

To get a grip on these questions, the Office of Sustainability is coordinating meetings this
year aimed at crafting a sustainability vision for this university. This work involves everyone,
from the Board of Trustees to faculty, staff and students. Across campus, people are meeting
in 15 focus areas, such as transportation, dining and procurement.

This spring, the committee will compile reports from these meetings into a comprehensive
and inclusive sustainability vision. That document will guide us as we develop policies to
move forward.

As this process continues, I want to stress that we owe it to ourselves and to our community
not to limit our ambitions during these discussions.

Universities have a long tradition of serving as nurseries for progressive and forward-think-
ing ideas. We must maintain that tradition with regard to sustainability, so essential to our
own health and the health of the planet.

In the long run, it may turn out that our greatest impact may not be what we do here on
campus, but rather what we inspire in the world.









J. Bernard Machen
President


University ofFlorida






Introductions


Sam pleased to present the University of Florida Annual Financial Report for 2006-07.
This report provides pertinent information concerning the University's financial position
and activities for the year. The University had a strong financial year as evidenced by net
assets of more than $2.4 billion, an 11.4-percent increase when compared to 2005-06. The
Management's Discussion and Analysis, the financial statements, and the notes to the finan-
cial statements document the University's financial success and health for the year.

Like many other large institutions and corporations, the University of Florida is working to
integrate principles of sustainability into all of our management processes, and you will find
examples of that integration throughout this report. We no longer approach sustainability as
an add-on capability, but view sustainable management as a new way of doing business that
touches every department.

The Division of Business Affairs considers how the externalized costs of doing business,
such as air pollution and traffic congestion, affect our community. Transitions to cleaner-
burning fuels in fleet vehicles, fleet consolidation, and incentive programs for alternative
commuting are under way.

For example, the University's sustainable purchasing policy is already helping guide Uni-
versity procurement in ways that help local suppliers and minimize negative impacts on
the environment and society. In one area, decreasing the amount of packaging that comes
to campus and negotiating the best prices for computers, printers and appliances that meet
energy efficiency and waste minimization standards will reduce costly waste streams.

More than 90 percent of the University's irrigation water is also being reclaimed from our
campus wastewater treatment facility. Low-impact landscape design is both beautiful and
minimizes maintenance costs. The design also works to enhance the landscape's natural
filtration capacity, thus reducing storm water runoff.

New construction on campus is being built to Leadership in Energy and Environmental
Design standards and existing campus buildings are being re-commissioned to optimize
efficiency in operations. Competitively priced, low-toxicity cleaning products decrease our
employees' exposure to harmful chemicals as well as associated health risks.

Clearly we are proud of the University's commitment to sustainability, not only in terms of
our campus-wide initiatives, but also in the significant contributions made by UF research-
ers in the quest for a sustainable future for all of mankind.






Ed Poppell
Vice President
for Business Affairs


A Component Unit ofthe State of Florida


Introduction from
the Vice President for
Business Affairs,
Ed Poppell























































.S4A


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...rom RESEARCH


to#


s populations around the
world continue to grow and
concerns deepen regard-
ing issues such as climate
change, energy independence and scarcity of
natural resources, the importance of finding
sustainable solutions becomes everyone's
responsibility.

The University of Florida has a special ob-
ligation to meet these challenges, since the
values, knowledge and skills we impart to
our students will greatly influence the kind
of citizens and leaders they become follow-
ing graduation.

We believe that meeting sustainability
challenges means looking at the issues
with a new perspective one that focuses
on three interdependent areas of con-


cern: the environment, the economy and
society. Historically these three elements
have existed in opposition, but by work-
ing to integrate and balance the three, UF
researchers promote a healthy, long-range
vision for our campus, the state of Florida,
our nation and the world.


University of Florida
sustainability programs
and initiatives
sustainability permeates every facet of
the university, from pure research to
the development of viable tech-
nologies to seeding new businesses that
can leverage the technology into practical,
functioning commercial operations. The
university also is committed to sustainable
practices all across campus. The following


are a few examples of research, initiatives
and programs currently under way at UF


Energy
A significant advancement toward energy
independence was achieved through the
work of UF researcher Lonnie Ingram, who
invented the unique process for convert-
ing plant material into alternative fuel.
Through his remarkable process, sugarcane,
grasses and wood waste can all be converted
to energy, and it is estimated that 10 billion
gallons of fuel could be produced annually
from resources such as yard waste currently
going into landfills.

The sun is another energy source offering
great promise, and among other advance-
ments, UF researchers are pioneering excep-








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in this country, and many feel it is critical to
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tonally thin and inexpensive organic solar cells
that create easy-to-use, flexible battery chargers. iF.,
These scientists also see a future where roof '. ....", ....
tiles, paint and even fabric can produce energy.

A resurgence in nuclear energy is under way
in this country, and many feel it is critical to
solving major problems facing humankind over
the next 50 years. UF's nuclear engineering .B
department one of only a few in the country .'
and the state's only is ranked in the top 10 ..'H
in the nation. i


Population Growth
Florida's dramatic population growth taxes
both natural resources and the state's abil-
ity to generate sufficient energy. Innovative B a^S aB gB mH' SB
developments in architecture and building BHB
construction at UF have led to model com-






Overview


munities that illustrate the strong economic
case for "green" development by saving
on permitting and construction costs and
fetching market-leading sales prices. A
return to communities that promote green
spaces, recreational opportunities and social
interaction fosters a high quality of life for
residents.

In her book The Green Braid: Towards an
Architecture ofEcology, Economy and Equity,
UF professor Kim Tanzer examines the
three key facets of sustainability as they
combine with the discipline of architec-
ture. "The built environment, created
over a period of centuries by architects,
landscape architects, interior designers, city
and regional planners, and constructors,
accounts for many of the urgent prob-
lems we face today, including increasing


energy use, planetary toxicity, the effects of
poverty, and resource depletion and waste.
Understanding and reversing these impacts
in their economic, ecological and human
dimensions is a key role for leaders in all
the design disciplines," Tanzer wrote.

To promote the adoption of best design,
construction and management practices in
new residential community developments,
the Program for Resource Efficient Com-
munities (PREC) was created. The practices
promoted by PREC measurably reduce
energy and water consumption, as well as
environmental degradation. PREC staff
work with designers, builders and develop-
ers to bring expertise in water, energy, wild-
life, forestry, construction and landscaping
to Florida's growing development industry.


Agriculture
The economic impact of Florida's agricultural
economy is estimated at $97 billion annu-
ally, and the university's Institute of Food
and Agricultural Sciences (IFAS) plays a
significant role in the agriculture of Florida
and beyond. IFAS is a federal, state and local
government partnership dedicated to devel-
oping knowledge in agriculture, human and
natural resources and the life sciences, and
to make that knowledge accessible to sustain
and enhance the quality of human life. IFAS
promotes diverse and sustainable agricultural
practices that encourage the protection of
farmland and the rural environment through
research programs such as those facilitated by
the UF/IFAS Center for Organic Agriculture.
IFAS/Extension, which has units in all of
Florida's 67 counties, has many award-win-
ning resources that facilitate sustainable liv-
ing, including the Florida Yards & Neighbor-
hoods program, Integrated Pest Management
Florida, the Program for Resource Efficient

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UF is one of the top five

public universities in

transferring technology

to the commercial sector

for public benefit.


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2006-07 Annual Report


students through courses such as Sustain-
able Agriculture Systems Analysis, and
Agricultural and Resource Ethics, and even
through majors such as Organic Agricul-
ture. CALS is an educational leader in the
areas of food, agriculture, natural resources
and life sciences.


Technology Transfer
University of Florida contributions to sus-
tainability extend well beyond the labora-
tory. Through highly successful business
incubator initiatives and the efforts of our
Office of Technology Licensing, UF is
one of the top five public universities in
transferring technology to the commer-
cial sector for public benefit. Three UF
incubators that are helping take discoveries
from lab to market include the Sid Martin
Biotechnology Development Incubator,
the Gainesville Technology Enterprise
Center and the Energy Technology Incu-
bator. Some 80 biotechnology companies
have emerged from university research ini-
tiatives, contributing an estimated half bil-
lion dollars annually to Florida's economy.
In fact, in just the past few years, energy
research at UF has attracted more than
$70 million from the U.S. Department of
Energy and $10 million from NASA.


Planning for the Future
In order to create a sustainable energy
future and address the state's growing
energy needs, the university developed the
Florida Institute for Sustainable Energy,
which brings together all of our energy
research capabilities, encompassing more
than 150 faculty members and 22 UF en-
ergy research centers. To ensure research
becomes reality, the institute also created
the Energy Technology Incubator, which
accelerates commercialization of energy
technologies and processes, resulting in the
creation of new high-tech industries.


Sustainability on the
UF campus
As the third-largest university in the U.S., we
consume significant resources on campus.
Beginning in 2004, the university pledged
to build all new construction to Leadership
in Energy and Environmental Design, or
LEED, standards. These principles dictate
high requirements for energy, water and ma-
terials efficiency, with minimum impacts on
local ecosystems. LEED buildings also save
on operational and maintenance costs over
the life of the structures. So far, 18 campus
buildings have been or are being constructed
to the standards, including two Gold-certi-
fied buildings, and UF has begun to renovate
historic buildings to the standards, as well.

Construction standards also include a com-
mitment to the health and well being of the
buildings' occupants and visitors to UE Low
toxicity in materials, finishes, furniture and
cleaning supplies used to service the build-
ings highlights the importance of wellness to
sustainability.

The university is committed to achieving
zero waste by 2015. Nearly 40 percent of


solid waste is currently recycled, about 60
percent of deconstruction waste is reclaimed
and recycled, best practices in research waste
are followed and more than 26,000 pounds
of recyclable materials were collected in the
first four football games of 2006 alone.

Numerous transportation incentives also
are being provided to encourage walking,
cycling, ride-sharing and public transporta-
tion. The university also is developing a
comprehensive suite of alternatives to single-
occupancy vehicle travel, and the UF campus
fleet includes a sizable number of hybrid and
alternative-fuel vehicles.

As you can see, our commitment to sustain-
ability encompasses a wide spectrum, from
alternative energy to energy-efficient build-
ing and development practices, sustainable
agriculture and protection of the natural
environment. And while our researchers
continue to make significant breakthroughs
in each of these areas, the real benefit can be
found in the university's ability to marshal its
discoveries from conceptual to actual from
the laboratory to functioning technology that
delivers genuine benefits to mankind.


University ofFlorida






















the interlocking missions of the University of Florida.


ducating students is the recognized purpose of the university, but the quality of that

education benefits significantly from the other two missions. Research provides

an environment of inspiration and discovery so critical to educating the leaders of

tomorrow, and service not only fulfills the university's obligation to use its knowledge and skills

to benefit the public welfare but also ingrains a tradition of public service in students.


University of Florida
students are among the
country's best, brightest
and most diverse
Approximately 90 percent of incoming
freshmen score above the national average
on standardized college entrance exams, and
many prestigious scholarship programs are
awarded to University of Florida students
annually. Past awards include a Rhodes,
Mitchell, several Udalls and Trumans, many
Fulbright Fellowships and others. The Uni-
versity of Florida has received more Inter-
national Baccalaureate transcripts than any
other institution in the world. The fresh-
man class retention rate of 94 percent speaks
to the outstanding quality of the university's
entire academic experience.

Preliminary Fall 2007 enrollment figures
for the university include more than 42,000
in-state students, representing all Florida


A Component Unit ofthe State of Florida






2111-( 1i- A\nnual Financial Repoil


counties. UF students also represent the 49
remaining states, the District of Columbia,
Puerto Rico and the Virgin Islands.

UF has approximately 3,000 international stu-
dents representing more than 100 countries.

Committed to diversity at every level, the
university is second among all Association of
American Universities members in award-
ing bachelor's degrees to Hispanic/Latino
students, fourth for awarding bachelor's
degrees to African-American students and
first in professional degrees awarded to Afri-
can Americans. Approximately 25 percent
of the University of Florida student body
members are minorities.


The University of Florida
offers a vast array of
programs on its single
campus
The university comprises 16 colleges and
more than 150 research, service and educa-
tion centers, bureaus and institutes. Faculty
and student scholars are brought together
from various academic programs to provide
research and development services in all
areas of interest. Nearly 100 undergradu-
ate majors are offered, and more that 1,900


freshmen and sophomores participate in
the honors program, which offers 90 to 100
courses per semester. The Graduate School
coordinates 242 graduate and professional
degree programs, which include dentistry,
law, medicine, pharmacy and veterinary
medicine.

In addition, UF has a distinguished record of
developing Florida agriculture into a national
leader through research and extension ser-
vices, expanding the influence of the universi-
ty into every county of the state and beyond.


A distinguished and
highly honored faculty
The distinguished faculty of the University
of Florida attracted more than $583 million
in research and training grants for 2006-07,
up 12.5 percent from the previous record-
breaking year. The university faculty, which
numbers more than 4,000, now has 62
Eminent Scholar Chairs, and more than two
dozen faculty members have been elected to
the National Academies of Science and/or
Engineering, the Institute of Medicine, or a


University ofFlorida






Overview


"W!T"Yp institOl
Carnegie Founda'


counterpart in another nation. The Univer-
sity of Florida also remains in the top 20
among all public universities as ranked by
U.S. News & World Report.

As a testament to the success of the Uni-
versity of Florida faculty, the university has
been awarded national scientific centers
that include the McKnight Brain Institute
for the study of neurological disease, the
Engineering Research Center for Particle
Science, and the National High Magnetic


-gra ntj
'ati

Soctoral/rese

is categorized by the


Field Laboratory in Tallahassee under the
joint auspices of the University of Florida,
Florida State University and Los Alamos
National Laboratory.

Honored UF faculty, past and present,
include Pulitzer Prize winners, a recognized
pioneer in aviation engineering, a leading
scholar on econometrics, three winners of
NASA's top award for research, one of the
four charter members of the Solar Hall
of Fame and a winner of the Smithsonian
Institution's award for conservation.


The University of Florida
is a world leader in
research
UF researchers contribute significantly
to nearly every field of endeavor. They
have pioneered new therapies and better
treatments in the fights against aging and
disease. They have developed renewable
energy sources that offer great promise in
reducing our dependence on fossil fuels.
They have engineered healthier foods, more
energy-efficient and sustainable construc-
tion techniques and better ways to protect
the environment. They work closely with
NASA on a wide variety of critical scientific
projects. And, in the process, they improve
the lives of millions of people in Florida and
around the world.

From pharmacy and public relations to pain
mitigation and materials engineering, the
University of Florida is a recognized leader in
a wide variety of specialties and areas. Univer-
sity of Florida researchers and scientists have
made significant developments and discov-
eries in many fields, including astronomy,
microbiology, metallurgy and medical
technology. The university ranks 13th among
all universities in patents awarded.

Through years of research, University of
Florida scientists, inventors, engineers and
researchers have developed products and
practices that have been distributed and
applied with an international reach. In fact,
biotechnology companies that have emerged
from university research initiatives contrib-
ute an estimated half billion dollars annually
to Florida's economy alone.

UF also leads in royalty licensing. Signifi-
cant products include the glaucoma drug
Trusopt, the sports drink Gatorade and the


A Component Unit ofthe State of Florida







2006-07 Annual Financial Report


UF was awarded ESCAMB
428
$583 million in

sponsored research

in 2006-07 more

than all other

Florida universities

combined.






Sentricon termite elimination system. The

university patented 137 inventions in 2007,

making it seventh highest in number of

patents issued.


An $85 million Genetics, Cancer and Bio-

technology Building was completed in 2006.


SANTA HOLMES
ROSA 17 JACKSON
51
175 OKALOOSA NASSAU
SWASHINGTON GADSDEN JEFFERSON 131
IA WALTON 13 28 LEON 12 MADISON HAMILTON
38 CALHOUN 13
BAY 1695 20 DUVAL
BAY 12 695 20 SUWANNEE BAKER 23
295 LIBERTY WAKULLA 73 COLUMBIA 29
2 8 TAYLOR 164UNIONBR CLAY
GULF FRANKLIN 23 LAFAYETTE 33 FD 608 ST.JOHNS
6 028
11 3 6 GIL- 75 528
CHRIST ALACHUA PUTNAM
DIME 71 4616 132
16 -FLAGLE


In-State Enrollment by County Fall 2006


Total In-State Enrollment: 42,102






Development projects include a partnership

with Spain to create the world's largest tele-
scope in the Canary Islands, and a collabora-
tion with the Burnham Institute to build

a 50,000-square-foot facility in Orlando,
dedicated to research in the areas of diabetes,

aging, genetics and cancer.


MARION
805


CITRUS
199 LAKE
SUMTER 384
HERNANDO 50
123
PASCO
538


118

VOLUSIA
918
SEMINOLE
1,435
ORANGE
2,600


OSCEOLA
HILLS- 296 BREVARD
POLK
PINELLAS BOROUGH 673 1,451
2307 2,721
INDIAN RIVER
290
MANATEE HARDEE
5 OKEECHOBEE
450 18 35 ST.LUCIE
HIGHLANDS 333
DESOTO 108
SARASOTA 30 MARTIN
856 414
CHARLOTTE GLADES
168 6
LEE HENDRY PALM BEACH
708 39 2,971

BROWARD
COLLIER 538
476 3

MIAMI-
MONROE DADE
127 4207


Headcount Enrollment by Colleges and Schools Fall Terms


College/School

Accounting
Agricultural and Life Sciences
Building Construction
Business Administration
Dentistry
Design, Construction, and Planning
Division of Continuing Education (A)
Education
Engineering
Fine Arts
Forest Resources and Conservation
Health and Human Performance
High School
Journalism and Communications
Law
Liberal Arts and Sciences
Medicine
Natural Resources and Environment
Nursing
Pharmacy
Pharmacy Doctor
Physician Assistant Program
Public Health & Health Professions
Veterinary Medicine

SUBTOTAL

Minus Concurrent Degree

TOTAL


2006 2005

852 873
4,450 4,084
668 672
5,543 5,546
385 380
977 996
380 417
1,914 1,898
6,832 6,635
1,247 1,230
213 186
2,098 2,028
27 39
3,041 2,973
1,489 1,363
14,582 14,496
830 851
103 217
1,040 926
620 640
1,923 1,873
120 120
1,728 1,605
509 519

51,571 50,567

51 55

51 520 50 512


2004 2003


972
3,798
628
5,682
380
987
372
1,912
6,402
1,147
161
1,838
27
2,985
1,273
14,015
800
177
920
574
1,595
119
1,552
512

48,828

63

48 765


947
3,707
609
6,221
373
989
294
1,749
6,580
1,180
144
1,815
36
3,157
1,267
13,713
789
181
936
468
1,387
117
1,561
511

48,731

58

48 673


2002

903
3,623
559
6,713
374
981
535
1,810
6,607
1,180
129
1,882
35
3,305
1,312
12,953
758
180
860
372
1,174
119
1,409
501

48,274

90

48 184


Federal Awards by Agency
for 2006-07 fiscal year
(in millions)
NIH 138.0
HHS 46.6
NSF 39.4
USDA 36.4
DOD 26.1
Education 16.5
HRSA 12.4
Energy 9.5
Veterans Affairs 9.0
NASA 7.6
Commerce 4.1
Interior 3.9
SAID 3.6
DOT 2.3
EPA 1.1
Other Federal 4.5
Total 361.0


(A) Includes Continuing Education and correspondence courses for students not enrolled in a college.
Source: Offce of Institutional Planning and Research UF Facts


University ofFlorida


RI






Overview


The University of Florida is
in Gainesville
The University of Florida campus occu-
pies more than 2,000 acres in the center of
Gainesville, which is recognized as one of
the nation's most desirable places to live,
and currently ranks No. 1 in Frommer's
"Cities Ranked and Rated."

University facilities are valued at more than
$2.1 billion and include 980 buildings, with
more than 180 containing classrooms and
laboratories. The Hume Honors Residency
Building is the first-ever residential college
built from the ground up to serve honors
students. The state-of-the-art Florida Proton
Beam Therapy Center was recently complet-
ed in Jacksonville, and construction recently
was completed on the Jim and Alexis Pugh
Hall, which will house the new Bob Gra-
ham Center for Public Service.


University of Florida students, faculty and
staff enjoy first-class recreational facilities
located at convenient spots on campus, with
numerous recreational and fitness programs
offered. The Stephen C. O'Connell Center,
the J. Wayne Reitz Union and the Student
Recreation and Fitness Center provide space
for a myriad of activities.

Additional facility improvements completed
or under construction include the Ortho-
paedics and Sports Medicine Institute, the
Mary Ann Ham Cofrin Pavilion, the Legal
Information Center, the ICBR Biotechnol-
ogy Laboratory Pavilion, and the remodel-
ing of the Pharmacy Wing of the Health
Science Center.

The University of Florida also hosts an im-
pressive array of facilities dedicated to honor-
ing the arts, humanities and the sciences.



Research Awards by Sponsor
for 2006-07 Fiscal Year
(in millions)



Foun
$5
1(

Corporate 4
$48.6
8%


hae emrgd ro
initiativescontibute^^^^^
an estimated
-0lf 0illion dollars
annually to Florida's




*cn m al0o 0e.
* 0u^^^nmM^^0^
* S 0 @0 0^^^^^^^^^

* 0 0 0 @0B^^^^^^
- 0@ 00 -^^^^^^^^^


dation
i8.3
0%


Other
$12.1
2%


A^^^^H


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


The Florida Museum of Natural History is
among the top 10 natural history/anthro-
pology museums in the nation and is the
largest in the Southeast. Its natural science
collections contain approximately 6 million
specimens. The museum opened the $12
million McGuire Center for Lepidoptera
and Biodiversity, which houses the world's
second-largest butterfly collection and a live
butterfly rainforest.

The Samuel P. Ham Museum of Art is one of
the largest museums in the region, with more
than 26,000 square feet of exhibit space.

University of Florida Performing Arts contin-
ues to bring international recognition to UF
and is recognized among the top 10 perform-
ing arts programs in the United States.



One of the most successful
collegiate athletic
programs in the nation
The University of Florida prides itself on the
excellence of its collegiate sports programs
and enjoys significant success with its varsity
teams. Highlighted by national titles by the
men's basketball and football teams, a total
of 11 Gator athletic teams turned in top-10
finishes in 2006-07. The pair of wins distin-
guishes Florida as the first program ever to
hold both the national men's basketball and
football titles in the same academic year. The
University of Florida provides an athletic at-
mosphere rivaled by only a few other schools
in the nation.

The University of Florida finished sixth in
the national all-sports competition for overall
men's and women's program excellence. Only
the University of Florida and the University


DEGREES AWARDED BY TYPE OF DEGREE
Degree 2006-07 2005-06

Bachelors 8,569 8,252
Masters 3,142 3,051
Doctor of Philosophy 784 718
Juris Doctor 427 388
Doctor of Pharmacy 454 345
Doctor of Medicine 124 115
Doctor of Dental Medicine 79 78
Doctor of Veterinary Medicine 79 82

TOTAL 13,658 13029

Source: UF Offce of Institutional Planning and Research


of California Los Angeles, have finished in
the top-10 all-sports ranking in every year
since the 1983-84 academic year.

For an unprecedented eighth time, the
University of Florida completed a sweep
of all three Southeastern Conference All-
Sports titles, capturing the 2006-07 New
York Times Regional Newspaper Group
SEC All-Sports title. Prior to 1992, no
school in SEC history had ever won both
the men's and women's all-sports titles in
the same academic year. Florida is the only
school in SEC history to ever win both the
men's and the women's all-sports titles in
the same academic year, pulling off the feat
in 1992, 1993, 1996, 1998, 2000, 2002,
2003 and 2007.

Few schools in the country can boast such
a rich Olympic tradition. Since 1968, 117
Gator student-athletes have represented 27
countries in 10 Olympiads and laid claim to
76 medals, including 39 gold medals.

Providing such effective management of the
university's sports programs is the University
Athletic Association, a direct-support orga-
nization serving as one of several component
units of the university.


2004-05

8,417
2,957
702
382
325
99
79
77

13,038


2003-04

8,574
3,022
694
425
272
116
76
75

13,254


2002-03

7,975
2,889
591
414
254
111
80
82

12,396


UF IS THE ONLY UNIVERSITY TO HOLD FOOTBALL AND
MEN'S BASKETBALL NATIONAL CHAMPIONSHIPS IN THE
SAME SEASON, AND THE MEN'S BASKETBALL TEAM
ALSO WON BACK-TO-BACK NATIONAL CHAMPIONSHIPS IN
2006 AND 2007.


University ofFlorida










AUDITOR GENERAL


STATE OF FLORIDA

G74 Claude Pepper Building N
111 West Madison Street
DAVID MARTIN, CPA Tallahassee, Florida 32399-1450 850/488-5534/SC 278-5534
AUDITOR GENERAL Fax: 488-6975/SC 278-6975


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

INDEPENDENT AUDITOR'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, 2007, as shown on pages 22 through 47. These financial statements are the
responsibility of University management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the aggregate discretely presented component units, as described in note 1 to the financial statements, which represent 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. The prior year partial comparative information was derived from
the University's 2005-06 financial statements and, in our report dated February 5, 2007, we expressed an unqualified opinion on the respective financial
statements.
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, 2007, 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.
The financial statements include prior-year partial comparative information. Such information does not include all of the information required to constitute
a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read
in conjunction with the University's financial statements for the fiscal year ended June 30, 2006, from which such partial information was derived.
In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2008, 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, rules, regulations, contracts, and grant
agreements and other matters included under the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit. That report is included as a part of our separately issued audit report on the University.
The MANAGEMENT'S DISCUSSION AND ANALYSIS on pages 17 through 21 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University of Florida's basic
financial statements. The introductory section, overview, and supplementary financial aid information are presented for purposes of additional analysis
and are not a required part of the basic financial statements. The introductory section (pages 2 through 4), overview (pages 6 through 15), and
supplementary financial aid information (page 48) have not been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
Respectfully submitted,


David W. Martin, CPA
January 29, 2008































tLro Ii0r1al VL n1


From the Vice President for Business Affairs


INTRODUCTION AND BACKGROUND
The Management's Discussion and Analysis (MD&A) provides an
overview of the financial position and activities of the University of
Florida (the University) for the fiscal year ended June 30, 2007, and
should be read in conjunction with the financial statements and notes
thereto. This overview is required by Governmental Accounting
Standards Board (GASB) Statement No. 35, Basic Financial State-
ments and Management's Discussion and Analysis for Public Col-
leges and Universities, as amended by GASB Statements Nos. 37 and
38. The MD&A, and financial statements and notes thereto, are the
responsibility of University management.


FINANCIAL HIGHLIGHTS
The University's assets totaled $2.4 billion at June 30, 2007. This
balance reflects a $246 million, or 11.4%, increase from the 2005-06
fiscal year. While assets grew, liabilities also increased by $26.5 mil-
lion to $502 million, a 5.6% increase. As a result, the University's
net assets increased by $219.5 million, or 13.1%, reaching a year-end
balance of $1.9 billion.

The University's operating revenues totaled $1 billion for the 2006-07
fiscal year, representing a 6.1% increase over the 2005-06 fiscal year.
Major components of operating revenues are grants and contracts and
student tuition and fees. Grant and contract revenue increased by $52.7


million, or 8.2%, because of an increase in awards. Student tuition and
fees increased 9.9% because of increases in enrollment and fees.

Net nonoperating revenues and expenses in the 2006-07 fiscal year
increased 19.0% because the University had a 17.8% increase in State
appropriations, which included funds for the Research and Econom-
ic Development Investment Program, Centers for Excellence and
World Class Scholars. Additionally, net investment income increased
by 109.4% because of rising interest rates and increased investment
balances.

Operating expenses totaled $1.8 billion for the 2006-07 fiscal year,
representing an increase of 4.5% over the 2005-06 fiscal year. The
largest category contributing to this increase was compensation and
employee benefits.

The University had significant construction activity during the year.
Construction projects completed include: (1) Hub Renovation (cap-
italizable costs of $9.6 million); (2) Center for Excellence (capitaliz-
able costs of $6.8 million); (3) Kathryn Chicone Ustler Hall (capi-
talizable costs of $4.3 million); and (4) Whitney Center for Marine
Studies (capitalizable costs of $3.6 million). Construction continues
on several major projects including three that when finished will be
over $148 million: (1) Biomedical Sciences Building; (2) NIMET
Nanoscale Research Facility; and (3) Pathogen Research Facility.


University ofFlorida






MD&A


OVERVIEW OF FINANCIAL STATEMENTS
Pursuant to GASB Statement No. 35, the University's financial report
includes three basic financial statements: the Statement of Net As-
sets; the Statement of Revenues, Expenses, and Changes in Net As-
sets; and the Statement of Cash Flows. The financial statements, and
notes thereto, encompass the University and its component units.
These component units include:

* Direct-Support Organizations These are separate, not-for-
profit corporations organized and operated exclusively to assist the
University in achieving excellence by providing supplemental re-
sources from private gifts, bequests and valuable education support
services.

* Health Science Center Affiliates These are the several corpora-
tions closely affiliated with the University of Florida J. Hillis Miller
Health Science Center, including the Faculty Practice Plans.

* Shands Hospital and Others This includes Shands Teaching
Hospital and Clinics, Inc., a not-for-profit corporation that is con-
tractually obligated to manage, operate, maintain and insure the
hospital 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 notes
1, 3 and 20 to the financial statements. This MD&A focuses on
the University, excluding the component units. MD&A information
regarding the component units is included in their separately issued
audit reports, if reporting under GASB standards. Component units
reporting under FASB standards do not include an MD&A in their
audit reports.

The financial statements characterize revenues and expenses as either
operating or nonoperating. A significant portion of the University's
anticipated, recurring resources is considered nonoperating as de-
fined by GASB Statement No. 35. The principal component of non-
operating revenues for the fiscal year ended June 30, 2007, is State
appropriations for operations ($702.3 million).

Recurring nonoperating expenses consist primarily of interest expense
on bonds and revenue certificates payable, totaling $6.8 million for
the fiscal year ended June 30, 2007.


STATEMENT OF NET ASSETS
The Statement of Net Assets reflects the assets and liabilities of the
University, 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 University's current financial condition. The changes in net
assets that occur over time indicate improvement or deterioration in
the University's financial condition. The following summarizes the
University's assets, liabilities, and net assets at June 30:


Condensed Statement of Net Assets
(in millions)
Assets: 2007 2006


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
Total Net Assets


$ 940.2 $ 750.8
1,339.1 1,300.3
124.0 106.2
2,403.3 2,157.3

163.6 160.5
338.4 315.0
502.0 475.5


1,226.5
543.9
130.9
$1,901.3


1,185.3
415.2
81.3
$ 1,681.8


STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
The Statement of Revenues, Expenses, and Changes in Net Assets
presents the University's revenue and expense activity, categorized as
operating and nonoperating. Revenues and expenses are recognized
when earned or incurred, regardless of when cash is received or paid.
The first table in the top left corner of the next page summarizes the
University's activity for the 2006-07 and 2005-06 fiscal years:



OPERATING REVENUES
GASB Statement No. 35 categorizes revenues as either operating or
nonoperating. Operating revenues generally result from exchange
transactions 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 that were
used to fund operating activities during the 2006-07 and 2005-06
fiscal years:


A Component Unit ofthe State of Florida







2006-07 Annual Financial Report


Condensed Statement of Revenues, Expenses,
and Changes in Net Assets
(in millions)


Operating Revenues
Operating Expenses

Operating Loss

Net Nonoperating Revenues

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



Operating Revenues
(in millions)

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


2006-07

$ 1,043.5
(1811.2)

(767.7)

837.6

69.9


149.6

219.5

1,681.8

$ 1,901.3


2006-07

$ 695.2

167.6
128.9
49.7
2.1

$ 1,043.5


20

$(1
(1


005-06

983.2
,732.4)
(749.2)

703.8

(45.4)


107.1

61.7

1,620.1

$ 1,681.8


2005-06

$ 642.5

152.5
133.5
53.4
1.3

$ 983.2


OPERATING EXPENSES

Expenses are categorized as operating or nonoperating. The major-
ity of the University's expenses are operating expenses as defined by
GASB Statement No. 35. GASB gives financial reporting entities
the choice of reporting expenses in the functional or natural clas-
sifications. The University has chosen to report the expenses in their
natural classifications on the Statement of Revenues, Expenses, and
Changes in Net Assets and has displayed the functional classifications
in the notes to the financial statements.

The following summarizes the operating expenses for each method of
classification for the 2006-07 and 2005-06 fiscal years:


Operating Expenses
(in millions)

Natural Classifications 2006-07 2005-06

Compensation and Employee Benefits $ 1,179.2 $ 1,128.0
Services and Supplies 357.6 340.9
Depreciation 108.5 107.4
Scholarships, Fellowships and Waivers 74.2 68.6
Utilities and Communications 69.8 63.9
Self-Insured Claims and Expenses 21.9 23.6

Total Operating Expenses $1,811.2 1,732.4

Functional Classifications 2006-07 2005-06

Instruction $ 548.5 $ 534.9
Research 460.6 441.2
Auxiliary Operations 130.0 139.2
Public Service 151.8 135.0
Academic Support 116.6 110.0
Depreciation 108.5 107.4
Institutional Support 106.6 95.6
Operation and Maintenance of Plant 104.6 90.6
Scholarships, Fellowships and Waivers* 53.5 47.4
Student Services 30.5 31.1

Total Operating Expenses $1,811.2 $1,732.4

*Net of Scholarship Allowances of $110 7 million in the 2006-07 fiscal year and $102.9
million in the 2005-06 fiscal year


NONOPERATING REVENUES AND
EXPENSES

Certain revenue sources that the University relies on to provide fund-
ing for operations, including State appropriations, certain gifts and
grants, and investment income, are defined by GASB as nonoper-
ating. Nonoperating expenses include capital financing costs and
other costs related to capital assets. The following summarizes the
University's nonoperating revenues and expenses for the 2006-07 and
2005-06 fiscal years:



Nonoperating Revenues (Expenses)
(in millions)
2006-07 2005-06

State Appropriations $ 702.3 $ 596.3
Federal and State Student Financial Aid 106.2 97.0
Investment Income 40.2 19.2
Interest on Capital Asset-Related Debt (6.8) (5.3)
Other Nonoperating Revenues (Expenses) (4.3) (3.4)

Net Nonoperating Revenues (Expenses) $ 837.6 $ 703.8


University ofFlorida


I






MD&A


OTHER REVENUES, EXPENSES, GAINS,
OR LOSSES
This category is composed mainly of capital appropriations and capi-
tal grants, contracts, and donations. The following summarizes the
University's other revenues, expenses, gains, or losses for the 2006-07
and 2005-06 fiscal years:


Other Revenues, Expenses, Gains, or Losses
(in millions)


Capital Appropriations
Capital Grants, Contracts and Donations
Loss on Disposal of Capital Assets

Total Other Revenues, Expenses,
Gains, or Losses


2006-07

$ 115.3
38.8
(4.5)


2005-06

$ 68.7
43.0
(4.6)


$ 149.6 $107.1


STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides information about the Uni-
versity's financial results by reporting the major sources and uses of
cash and cash equivalents. This statement will assist in evaluating
the University's ability to generate net cash flows, its ability to meet
its financial obligations as they come due, and its need for external
financing. Cash flows from operating activities show the net cash
used by the operating activities of the University. Cash flows from
capital and related financing activities include activities of the capital
funds and related long-term debt. Cash flows from investing activi-
ties show the net source and use of cash related to the purchases and
sales of investments and income earned on those investments. Cash
flows from noncapital financing activities include those activities not
covered in the other sections.

Major sources of funds came from State appropriations ($702.3 mil-
lion), net student tuition and fees ($168.4 million), grants and con-
tracts ($702.9 million), and sales and services of auxiliary enterprises
($126.2 million).

The following summarizes cash flows for the 2006-07 and 2005-06
fiscal years:


Condensed Statement of Cash Flows
(in millions)


Cash Provided (Used) by:
Operating Activities
Noncapital Financing Activities
Capital and Related Financing Activities
Investing Activities

Net Change in Cash and
Cash Equivalents

Cash and Cash Equivalents,
Beginning of Year

Cash and Cash Equivalents,
End of Year


2006-07

$ (627.9)
810.0
(57.2)
(122.5)


2005-06

$ (578.4)
691.5
(104.7)
(12.3)


2.4 (3.9)


.6


4.5


$ 3.0 $ .6


CAPITAL ASSETS, CAPITAL EXPENSES
AND COMMITMENTS, AND DEBT
ADMINISTRATION


CAPITAL ASSETS

At June 30, 2007, the University had approximately $2.6 billion in
capital assets, less accumulated depreciation of $1.3 billion, for net
capital assets of $1.3 billion. Depreciation charges for the current fis-
cal year totaled $108.5 million. The following table summarizes the
University's capital assets, net of accumulated depreciation, at June 30:


Capital Assets, Net
(in millions)

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

Total Capital Assets (Non-Depreciable
and Depreciable, Net)


2007

$ 10.9
899.2
32.6
243.1
57.7

7.4
13.7
1.4
73.1


2006

$ 10.9
850.5
34.1
236.5
57.6

7.7
19.0
1.5
82.5


$ 1,339.1 $1,300.3


Additional information about the University's capital assets is presented in Note 8
to the financial statements.


A Component Unit ofthe State of Florida


I






2006-07 Annual Financial Report


CAPITAL EXPENSES AND COMMITMENTS

Major capital expenses through June 30, 2007, were incurred on the
following continuing projects: Pugh Hall (Graham Center) ($8.1
million); Indian River Biological and Agricultural Research Center
($3.4 million); and the George Steinbrenner Band Building ($2.1
million). The University's total capital commitment as of June 30,
2007, was $263.6 million, while completed to date was $73.1 mil-
lion leaving a commitment balance of $190.5 million. Additional
information about the University's capital commitments is presented
in Note 15 to the financial statements.


DEBT ADMINISTRATION

As of June 30, 2007, the University had $121.3 million in bonds and
revenue certificates, capital leases, and installment purchase agree-
ments, representing a decrease of $4.1 million, or 3.3%, from the
prior fiscal year. The following table summarizes the outstanding
capital asset related debt by type of debt at June 30:


Capital Asset Related Debt
(in millions)
2007 2006
Bonds and Revenue Certificates $ 112.6 $ 119.2
Capital Leases 3.7 3.8
Installment Purchase Agreements 5.0 2.4
Total Capital Asset Related Debt $ 121.3 $ 125.4
Additional information about the University' capital asset related debt is presented in Note 11
to the financial statements.


ECONOMIC FACTORS THAT WILL
AFFECT THE FUTURE
The recent downturn in the State economy resulted in a reduction
of the University's 2007-08 fiscal year State appropriations by $16.7
million (2.4%). To mitigate this reduction, a 5% increase in tuition
and out-of-state fees for undergraduate courses was authorized begin-
ning in the Spring 2008 term. Beginning in the 2008-09 fiscal year,
Florida law provides for undergraduate tuition to increase at a rate
equal to the consumer price index and authorizes the establishment
of an undergraduate tuition differential. Graduate and professional
enrollment increased by 5% and 2%, respectively, in the 2007-08
fiscal year, continuing to pursue the University's goals of increased
graduate school enrollment and focus on research. The University
also projects continued growth in grant and contract revenues for the
coming year.


University ofFlorida







Financial Statements


STATEMENT OF NET ASSETS as of June 30, 2007
(amounts expressed in thousands)


Univ
2007
ASSETS
Current Assets:
Cash and Cash Equivalents (Note 2) $ 1,461
Investments (Note 3) 682,948
Accounts Receivable, Net (Note 4) 93,184
Loans and Notes Receivable, Net (Note 4) 3,612
Due from State (Note 5) 138,755
Due from Component Units/University (Note 6) 13,972
Inventories (Note 7) 5,765
Other Current Assets 509

Total Current Assets 940,206

Noncurrent Assets:
Restricted Cash and Cash Equivalents (Note 2) 1,544
Restricted Investments (Note 3) 86,326
Loans and Notes Receivable, Net (Note 4) 35,189
Depreciable Capital Assets, Net (Note 8) 1,254,631
Non-Depreciable Capital Assets (Note 8) 84,458
Other Noncurrent Assets 968

Total Noncurrent Assets 1,463,116

TOTAL ASSETS $ 2,403,322

LIABILITIES
Current Liabilities:
Accounts Payable $ 61,542
Accrued Salaries and Wages Payable 27,505
Due to State 164
Due to Component Units/University (Note 6) 12,817
Deferred Revenue (Note 10) 29,800
Deposits Held in Custody 3,353
Long-Term Liabilities Current Portion: (Note 11)
Bonds and Revenue Certificates Payable 6,755
Installment Purchase Agreements Payable 1,587
Capital Leases Payable 89
Compensated Absences Payable 9,132
Liability for Self-Insured Claims 10,849
Other Current Liabilities -

Total Current Liabilities 163,593

Noncurrent Liabilities: (Note 11)
Bonds and Revenue Certificates Payable 105,881
Installment Purchase Agreements Payable 3,459
Capital Leases Payable 3,612
Compensated Absences Payable 148,252
Liability for Self-Insured Claims 77,195
Other Noncurrent Liabilities

Total Noncurrent Liabilities 338,399

TOTAL LIABILITIES 501,992

NET ASSETS
Invested in Capital Assets, Net of Related Debt 1,226,499
Restricted:
Nonexpendable:
Endowment
Expendable:
Loans 52,228
Capital Projects 163,443
Debt Service 3,010
Other Restricted Net Assets 325,230
Unrestricted 130,920

TOTAL NET ASSETS 1,901,330

TOTAL LIABILITIES AND NET ASSETS $ 2,403,322

The accompanying notes are an integral part of these financial statements.


rersity of Florida
2006


$ 298
535,289
108,750
3,783
96,396

5,614
646

750,776

273
71,314
33,685
1,206,525
93,806
915

1,406,518

$ 2,157,294


$ 63,645
28,802
176
9,444
27,050
4,803

6,595
742
83
9,599
9,613


160,552


112,665
1,656
3,700
130,300
66,646


314,967

475,519


1,185,280



51,225
104,764
3,722
255,488
81,296

1,681,775

$ 2,157,294


Ci
Direct-Support
Organizations


$ 26,151
166,008
96,578

26,705
23,009
1,120
6,820

346,391

912
1,444,669
1,284
135,224
40,539
1,225

1,623,853

$ 1,970,244



$ 20,169
7,234

30,090
62,230
405

1,535


254

5,447

127,364


116,815


2,193

32,582

151,590

278,954


63,241


919,285



567,947
140,817

1,691,290

$ 1,970,244


omponent Units (FYE in 2007)
Health Science Shands Hospital
Center Affiliates and Others


$ 48,838 $ 78,222
5,108 374,523
64,661 170,689


20,656
127
2,668

142,058


1,500
24,572

22,095
1,015
14,494

63,676

$ 205,734


$ 11,668
14,682

7,012
66
76

854

108
7,362

5,220

47,048


17,377

191
25,518

35

43,121

90,169


5,650






1,500
108,415

115,565

$ 205,734


A Component Unit ofthe State of Florida


I


6,839

45,276

675,549


238,729

581,133
124,591
79,532

1,023,985

$ 1,699,534



$ 198,318
122

8,625
59
25

10,933

45


115

218,242


563,874

6,575


117,493

687,942

906,184


123,663


289



4,757
664,641

793,350

$ 1,699,534







2006-07 Annual Financial Report


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET A
for the Fiscal Year Ended June 30, 2007
(amounts expressed in thousands)


ASSETS


University of Florida
2006-07 2005-06


Component Units (FYE in 2007)
Direct-Support Health Science Shands Hospital
Organizations Center Affiliates and Others


OPERATING REVENUES
Student Tuition and Fees
Scholarship Allowances
Student Tuition and Fees, net of Scholarship Allowances
Federal Grants and Contracts
State and Local Grants and Contracts
Nongovernmental Grants and Contracts
Sales and Services of Auxiliary Enterprises (Notel 2)
Sales and Services of Educational Departments
Sales and Services of Component Units
Hospital Revenues
Gifts and Donations Component Units
Royalties and Licensing Fees Component Units
Interest on Loans and Notes Receivable
Other Operating Revenues

Total Operating Revenues


$ 278,381
(110,740)
167,641
301,237
54,060
339,881
128,908
49,732




717
1,337

1,043,513


$ 255,373 $
(102,868)
152,505
284,353
36,118
322,067
133,546
53,373




726
533

983,221


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 13)


1,179,234
357,581
69,796
74,259
108,469
21,883


1,811,222


Operating Income (Loss)


1,128,013
340,892
63,884
68,614
107,398
23,612


1,732,413


(767,709) (749,192)


NONOPERATING REVENUES (EXPENSES)
State Appropriations
Federal and State Student Financial Aid
Investment Income
Interest on Capital Asset Related Debt
Other Nonoperating Revenues (Expenses)

Net Nonoperating Revenues (Expenses)

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

Capital Appropriations
Capital Grants, Contracts and Donations
Gain/(Loss) on Disposal of Capital Assets
Additions to Permanent Endowments
Transfers from/(to) Component Units

Total Other Revenues, Expenses, Gains or Losses


702,289
106,187
40,238
(6,842)
(4,255)

837,617


69,908


115,309
38,874
(4,536)


596,314
97,013
19,246
(5,342)
(3,436)

703,795


68,716
43,008
(4,662)


217,306
(4,540)
1,025

213,791


198,704



8
93,587
6,847


5,288
(282)
(104,919)


30,818

(88,029)


(99,913) (57,211)


(48,116) 45,634


134
(26,218)


50,512


149,647 107,062 100,442 50,557 (26,084)


Increase in Net Assets


Net Assets, Beginning of Year

Net Assets, End of Year


1,681,775 1,620,110 1,392,144 113,124 773,800

$ 1,901,330 $ 1,681,775 $ 1,691,290 $ 115,565 $ 793,350


The accompanying notes are an integral part of these financial statements.


University ofFlorida


59,494

133,932
48,287


8,531

250,244


411,341
13,094


11,721

436,156


665
1,435,022
9,355
1,145

160,530

1,606,717


6,860

258,471

265,331

(15,087)


4,766

379,593

384,359

51,797


69,001

1,434,871

1,503,872

102,845


219,555


61,665


299,146


19,550







Financial Statements


STATEMENT OF CASH FLOWS for the Fiscal Year Ended June 30,
(amounts expressed in thousands)


CASH FLOWS FROM OPERATING ACTIVITIES
Student Tuition and Fees, Net
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 (Disbursements)
Payments to Employees
Payments to Suppliers
Payments for Scholarships and Fellowships
Loans Issued to Students
Payments on Self-Insurance Claims and Expenses

Net Cash Used by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State Appropriations
Federal and State Student Financial Aid
Direct Loan Program Receipts
Direct Loan Program Disbursements
Net Change in Funds Held for Others
Other Nonoperating Receipts
Other Nonoperating Disbursements

Net Cash Provided by Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital Appropriations
Capital Grants, Contracts and Donations
Proceeds from Sales of Capital Assets
Other Receipts for Capital Assets
Purchases of Capital Assets
Principal Paid on Capital Debt and Leases
Interest Paid on Capital Debt and Leases

Net Cash Used by Capital and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES
Sales of Investments
Purchase of Investments
Investment Income

Net Cash 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 LOSS
TO NET CASH USED BY OPERATING ACTIVITIES
Operating Loss
Adjustments to Reconcile Net Operating Loss to Net
Cash Used by Operating Activities:
Depreciation Expense
Changes in Assets and Liabilities:
Receivables, Net
Due From State and Component Units
Inventories
Other Assets
Accounts Payable
Accrued Salaries and Wages Payable
Due to State and Component Units
Deferred Revenues
Deposits Held in Custody
Compensated Absences Payable
Liability for Self Insured Claims

NET CASH USED BY OPERATING ACTIVITIES
The accompanying notes are an integral part of these financial statements.


W A Component Unit ofthe State of Florida


2007


University of Florida
2006-07 2005-06


$ 168,367
702,907
126,240
49,740
7,264
719
651
(1,159,651)
(431,171)
(74,259)
(8,597)
(10,098)

(627,888)


702,289
106,187
160,099
(160,093)
3,941
2,077
(4,454)

810,046


74,087
33,647
129
221
(149,920)
(8,507)
(6,842)


3,135,870
(3,298,541)
40,132

(122,539)

2,434

571

$ 3,005


$ 148,865
683,829
135,811
53,323
7,503
787
(371)
(1,114,254)
(404,321)
(68,614)
(8,486)
(12,555)

(578,483)


596,314
97,013
151,343
(151,238)
(2,130)
4,827
(4,628)

691,501


68,716
15,254
129

(175,814)
(7,602)
(5,342)

(104,659)


1,610,027
(1,643,986)
21,633

(12,326)

(3,967)

4,538

$ 571


$ (767,709) $ (749,192)


108,469

14,349
(13,768)
(151)
136
(3,778)
2,097
717
2,480

17,485
11.785

$ (627,888)


107,398

17,787

86
(233)
601
3,146
(469)
20,734
(11)
10,613
11,057

$ (578,483)


































Jotes To TV^ allukillooki [4! me I


For the Fiscal Year Ended June 30, 2007


f SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The significant accounting policies followed by the University of
Florida are described below to enhance the usefulness of the finan-
cial statements.


A. Reporting Entity

The University of Florida is a separate public instrumentality that
is part of the State university system of public universities, and is
directly governed by a Board of Trustees (Trustees) consisting of
thirteen members. The Governor appoints six citizen members and
the State's 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 are also members. The Board
of Governors establishes the powers and duties of the Trustees. The
Trustees are responsible for setting policies for the University, which
provide governance in accordance with Florida law, State Board of


Education rules, and Board of Governors regulations. The Trustees
select the University President and the State Board of Education rati-
fies the candidate selected. The University President serves as the ex-
ecutive officer and the corporate secretary of the Trustees, and is re-
sponsible for administering the policies prescribed by the Trustees.

Criteria for defining the reporting entity are identified and described
in the Governmental Accounting Standards Board's (GASB) Codifi-
cation of GovernmentalAccounting and Financial Reporting Standards,
Sections 2100 and 2600. These criteria were used to evaluate poten-
tial 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
statements to be misleading or incomplete. Based on the application
of these criteria, the University of Florida is a component unit of the
State of Florida, and its financial balances and activities are reported
in the State's Comprehensive Annual Financial Report by discrete
presentation.


University ofFlorida






Notes


B. Blended Component Unit

Based on the application of the criteria for determining component
units, the University of Florida Self-Insurance Program (the Pro-
gram), combined with the University of Florida Healthcare Educa-
tion Insurance Company (HEIC), is included within the University's
reporting entity as a blended component unit. The Program was cre-
ated by the State's Board of Governors, pursuant to Section 1004.24,
Florida Statutes. The HEIC was created on September 1, 1994, as
a self-insurance mechanism created pursuant to Section 1004.24,
Florida Statutes. Although legally separate from the University of
Florida, the Program's and the HEIC's sole purpose is to assist in
providing liability protection for the University and its affiliated in-
dividuals and entities, and are therefore reported as if they are part of
the University. See Note 18 for more details.


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's reporting entity as discretely presented component units. The
University further categorizes its component units as Direct-Support
Organizations, Health Science Center Affiliates, and Shands Teach-
ing Hospital and Others. 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. Additional information on the
University's discretely presented component units, including copies
of audit reports, is available by contacting the Office of University
Relations. Condensed financial statements for the University's dis-
cretely presented component units are shown in Note 20.


D. Direct-Support Organizations

The University's direct-support organizations, as provided for in
Section 1004.28, Florida Statutes, and Board of Governors Regula-
tion 6C-9.011, 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 legally separate, not-for-
profit, corporations are organized and operated exclusively to assist
the University to achieve excellence by providing supplemental re-
sources from private gifts and bequests, and valuable education sup-
port services. The Statute authorizes these organizations to receive,
hold, invest and administer property and to make expenditures to


or for the benefit of the University. These organizations and their
purposes are explained as follows:

University of Florida Foundation, Inc. solicits, collects, manages,
and directs contributions to the various academic departments and
programs of the University, and assists the University in fund raising,
public relations, and maintenance of alumni records.

University of Florida Research Foundation, Inc. promotes, en-
courages, and assists research activities of the University through
income derived from or related to the development and commer-
cialization of intellectual properties, which include inventions, dis-
coveries, processes, and work products.

The 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.

The University of Florida Law Center Association, Inc. supports
the College 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 Flori-
da climate and soils in adequate quantities and at reasonable prices.

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

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

Citrus Research and Education Foundation, Inc. expedites citrus
production, propagates new plant materials, collects and analyzes
environmental impact research data, and provides research and edu-
cation support to the University of Florida Citrus Research and Edu-
cation Center at Lake Alfred.

University of Florida Leadership and Education Foundation,
Inc. was formed to further agriculture and natural resource educa-
tion and related activities, promote agriculture and natural resources
leadership, and make contributions to and confer benefits upon the
University.


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


Treasure Coast Agricultural Research Foundation, Inc. supports,
encourages, and fosters research, education, and extension at the In-
stitute of Food and Agricultural Sciences of the University on issues
related to the citrus industry within the Indian River region.

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

University ofFlorida Investment Corporation promotes the educa-
tional purposes of the University of Florida by providing investment
research, advice, counsel, and management to and for the University
Board of Trustees and affiliated organizations of the University.


E. Health Science Center Affiliates

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. These corporations
are as follows:

* Florida Clinical Practice Association, Inc.

* UF Jacksonville Physicians, Inc.

* Faculty Associates, Inc.

* Florida Health Professions Association, Inc.

* UF College of Nursing Faculty Practice Association, Inc.

* UF College of Pharmacy Faculty Practice Association, Inc.

* Florida Veterinary Medicine Faculty Association, Inc.

* UF Jacksonville Healthcare, Inc.

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

The first seven corporations listed are Faculty Practice Plans, as pro-
vided for in Board of Governors Regulation 6C-9.017. The Faculty
Practice Plans provide educationally-oriented clinical practice set-
tings and opportunities through which faculty 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 au-
thorized to regulate fees generated from faculty practice and main-
tain Faculty Practice Plans for the orderly collection and distribution
of fees. These organizations provide significant support for the clini-
cal instruction function of the JHMHC.

University of Florida Jacksonville Healthcare, Inc., a Health Services
Support Organization, as provided for in Board of Governors Regu-


nation 6C-9.020, engages in strategic alliances and partnerships with
non-academic entities, effecting managed care contracting and pro-
vider network development for the JHMHC. Faculty 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.


F. Shands Teaching Hospital and Others

Shands Teaching Hospital and Clinics, Inc. (Shands) was incor-
porated 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
medical education programs at the University.

Shands entered into a contractual agreement, as of July 1, 1980, as
subsequently restated and amended, with the State Board of Educa-
tion of the State of Florida, to provide for the use of hospital fa-
cilities 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 opera-
tion of the hospital facilities prior to July 1, 1980. At termination
of the contractual agreement, the net assets of Shands revert to the
State Board of Education. Legal title to all buildings and improve-
ments transferred to Shands remains with the State of Florida dur-
ing the term of the contractual agreement. The contractual agree-
ment 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 termi-
nate 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 con-
tract with the State Board of Education for the provision of these
programs. By operation of law, the University of Florida Board of
Trustees has become the successor-in-interest to the State Board of
Education.

Baby Gator Child Care Center, Inc. (the Center) was incorpo-
rated October 19, 1970, under Section 1011.48, Florida Statutes,
to establish and operate an educational research center for child de-


University ofFlorida






Notes


velopment 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 established by the State Board of Education. In addition,
the Center receives 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 with-
out charge. The Center's policy is to not record contributed facilities,
services, and other support in its financial statements. The Center
became an auxiliary of the University effective July 1, 2007.

University Village Apartments, Inc. (the Corporation) was es-
tablished in 1969, for the purpose of providing housing for low-
and moderate-income families, especially those affiliated with the
University of Florida. Capital was contributed at inception by the
University of Florida Foundation, Inc., but no capital stock was is-
sued because the Corporation does not operate for the benefit of any
special interest. The Corporation provides housing under Section
221(d)(3) of the National Housing Act. The facility consists of 28
two-story buildings and is regulated by the United States Depart-
ment of Housing and Urban Development 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 with accounting prin-
ciples generally accepted in the United States of America 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 principles promulgated by GASB
and the Financial Accounting Standards Board (FASB). GASB al-
lows public universities various reporting options. The University of
Florida has elected to report as an entity engaged in only business-
type activities. This election requires the adoption of the accrual ba-
sis of accounting and entity-wide reporting 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

* Notes to the Financial Statements


H. Basis of Accounting

Basis of accounting refers to when revenues, expenses, and related as-
sets 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
resources measurement focus and the accrual basis of accounting.
Revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the
exchange takes place. Revenues, expenses, gains, losses, assets, and
liabilities resulting from non-exchange activities are generally rec-
ognized when all applicable eligibility requirements, including time
requirements, are met.

The University's discretely presented component units use the ac-
crual basis of accounting whereby revenues are earned and expenses
are recognized when incurred. Some follow GASB and some, such
as the University of Florida Foundation, Inc. and Shands Teaching
Hospital and Clinics, Inc., follow FASB standards of accounting and
financial reporting for not-for-profit organizations.

The University follows FASB Statements and Interpretations issued
after November 30, 1989, unless those pronouncements conflict
with GASB pronouncements.

Interdepartmental sales between auxiliary service departments and
other institutional departments have been accounted for as reduc-
tions 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 as well
as administration, operation and maintenance of capital assets, and
depreciation on capital assets. Nonoperating revenues include State


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


appropriations, Federal and State student financial aid, investment in-
come and revenues for capital construction projects. Interest on capi-
tal asset-related debt is a nonoperating expense.

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 cer-
tain programs, it is the University's policy to first apply the restricted
resources to such programs followed by the use of the unrestricted
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 be-
tween the stated charge for goods and services provided by the Uni-
versity and the amount that is actually paid by a student or a third
party making payment on behalf of the student. The University ap-
plied "The Alternate Method" as prescribed in NACUBO Advisory
Report 2000-05 to determine the tuition scholarship allowances re-
ported in the Statement of Revenues, Expenses, and Changes in Net
Assets. Under this method, the University computes these amounts
by allocating the cash payments 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
in compliance with GASB Statement No. 9, Reporting Cash Flows
for Proprietary and Non-expendable Trust Funds.


I. Capital Assets

University capital assets consist of land, buildings, infrastructure and
other improvements, furniture and equipment, library resources,
property under capital lease and lease improvements, works of art
and historical treasures, computer software, construction in progress,
and other capital assets. These assets are capitalized and recorded at
cost at the date of acquisition or at estimated fair value at the date
received in the case of gifts or purchases of State 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 expensed as incurred. The University
has a capitalization threshold of $1,000 for tangible personal prop-
erty and $100,000 for new buildings. For building improvements,
the threshold is $100,000, or less, if the amount expended is at least
25% of the cost basis of the building.


Depreciation is computed on the straight-line basis over the following
estimated useful lives:

* Buildings / Improvements 20 to 50 years, depending on construction

* Infrastructure and Other Improvements 12 to 50 years

* Furniture and Equipment 3 to 20 years

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

* Computer Software 3 to 7 years

* Library Resources 10 years


J. Noncurrent Liabilities

Noncurrent liabilities include principal amounts of bonds and rev-
enue certificates payable, installment purchase agreements payable,
capital leases payable, compensated absences payable, and liability for
self-insured claims that are not scheduled to be paid within the next
fiscal year. Bonds and revenue certificates payable are reported net of
unamortized premium or discounts and deferred losses on refund-
ings. The University amortizes bond premiums and discounts over
the life of the bonds and revenue certificates using the straight-line
method. Deferred losses on refundings are amortized over the life of
the old debt or new debt (whichever is shorter) using the straight-line
method. Issuance costs paid from the debt proceeds are reported as
deferred charges, and are amortized over the life of the bonds and
revenue certificates using the straight-line method.


K. Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial
statements and subsequent notes hereafter.


E CASH AND CASH EQUIVALENTS
The amount reported by the University as cash and cash equivalents
consists of cash on hand and cash in interest earning demand ac-
counts. University cash deposits are held in banks qualified as public
depositories under Florida law. All such deposits are insured by Fed-
eral depository insurance, up to specified limits, or collateralized with
securities held in Florida's multiple financial institution collateral pool
required by Chapter 280, Florida Statutes. Cash and cash equivalents
that are externally restricted to make debt service payments, maintain
sinking or reserve funds, or to purchase or construct capital assets are
classified as restricted.


University ofFlorida






Notes


INVESTMENTS
Section 1011.42(5), Florida Statutes, authorizes universities to invest
funds with the State Treasury and State Board of Administration,
and requires that universities comply with the statutory requirements
governing investment of public funds by local governments. Accord-
ingly, universities are subject to the requirements of Chapter 218,
Part IV, Florida Statutes. Pursuant to Section 218.415(16), Florida
Statutes, the University is authorized to invest in the Local Govern-
ment Surplus Funds Trust Fund, administered by the State Board of
Administration; interest-bearing time deposits and savings accounts
in qualified public depositories, as defined in Section 280.02, Florida
Statutes; direct obligations of the United States Treasury; obligations
of Federal agencies and instrumentalities; securities of, or interests in,
certain open-end or closed-end management type investment compa-
nies; Securities and Exchange Commission registered money market
funds with the highest credit quality rating from a nationally recog-
nized rating agency; and other investments approved by the Univer-
sity's Board ofTrustees, as authorized by law. Investments set aside to
make debt service payments, maintain sinking or reserve funds, or to
purchase or construct capital assets are classified as restricted. Invest-
ments of the University and its component units at June 30, 2007,
are reported at fair value and shown in Tables 1 and 2.


Table 1. University Investments
Types of Investments Fair Value
External Investments Pools:
Florida State Board of Administration
Local Government Surplus Funds Trust Fund $ 645,036,093
Florida State Board of Administration Debt Service Accounts 191,000
United States Government and Federally-Guaranteed Obligations 18,767,191
Repurchase Agreements 23,679,187
Bonds and Notes 12,881,387
Stocks 35,406,850
Certificates of Deposit 750,000
Money Market Funds 186,367
Bond Mutual Funds 32,376,120
Total University Investments $ 769,274,195


A. External Investment Pools

The University's discretely presented component units (see Note 1)
reported investments at fair value totaling $122,693,176 at June 30,
2007, in the State Treasury Special Purpose Investment Account
(SPIA) investment pool, representing ownership of a share of the
pool, not the underlying securities. The State Treasury has taken the
position that participants in the pool should disclose information


Table 2. Component Unit Investments
Types of Investments Fair Value


External Investments Pools:
Florida State Treasury Special Purpose Investment Accounts
Florida State Board of Administration
Local Government Surplus Funds Trust Fund
United States Government and Federally-Guaranteed Obligations
Federal Agency Obligations
Bonds and Notes
Investment Agreements
Real Estate Agreements
Stocks
Certificates of Deposit
Money Market Funds
Equity Mutual Funds
Bond Mutual Funds
Commercial Paper
Total Component Units Investments


$ 122,693,176
71,441,786
69,839,966
16,037,164
100,541,287
845,407,899
6,210,938
121,693,987
929,918
119,757,615
550,703,170
179,392,853
48,959,000
$2,253,608,759


related to interest rate risk and credit risk. The SPIA carried a credit
rating of AA-f by Standard and Poor's and had an effective duration
of 3.21 years at June 30, 2007. The University relies on policies de-
veloped by the State Treasury for managing interest rate risk or credit
risk for this investment pool. Disclosures for the State Treasury in-
vestment pool are included in the notes to the financial statements of
the State's Comprehensive Annual Financial Report.

The University and its discretely presented component units report-
ed investments at fair value totaling $645,036,093 and $71,441,786,
respectively, at June 30, 2007, in the Local Government Surplus
Funds Trust Fund, which is administered by State Board of Admin-
istration (SBA) pursuant to Section 218.405, Florida Statutes. The
University's investments in the Local Government Surplus Funds
Trust Fund, a Securities and Exchange Commission Rule 2a-7 like
external investment pool, are similar to money market funds in
which shares are owned in the fund rather than the actual underlying
investments. The SBA has taken the position that participants in the
pool are not required to disclose information related to interest rate
risk, custodial credit risk, concentration of credit risk, and foreign
currency risk. The investment pool was not rated by a nationally
recognized statistical rating agency as of June 30, 2007.



B. Florida State Board of Administration Debt
Service Accounts

The University reported investments at fair value totaling $191,000
at June 30, 2007, in the State Board of Administration Debt Service
Accounts. These investments are used to make debt service payments
on bonds issued by the State Board of Education for the benefit of
the University. The University's investments consist of United States


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


Treasury securities, with maturity dates of six months or less. The
University relies on policies developed by the State Board of Ad-
ministration for managing interest rate risk and credit risk for these
accounts. Disclosures for the Debt Service Accounts are included in
the notes to the financial statements of the State's Comprehensive
Annual Financial Report.



C. Other Investments

In addition to external investment pools, the University and its dis-
cretely presented component units invested in various debt and equity
securities, money market funds, mutual funds and certificates of de-
posit. For the University, practically all of the other investments are
those reported by the University of Florida Self-Insurance Program
combined with the University of Florida Healthcare Education In-
surance Company, a blended component unit (see Note 1). For the
University's discretely presented component units, other investments
are those reported primarily by the University of Florida Foundation,
Inc., University of Florida Research Foundation, Inc., The University
Athletic Association, Inc., Florida Clinical Practice Association, Inc.,
and Shands Teaching Hospital and Clinics, Inc. The following risks
apply to investments other than external investment pools for the Uni-
versity and its discretely presented component units:

Interest Rate Risk: Interest Rate Risk is the risk that changes in
interest rates will adversely affect the fair value of an investment.


Pursuant to Section 218.415(16), Florida Statutes, the University's
investments in securities must provide sufficient liquidity to pay ob-
ligations as they come due. Per the Statement of Investment Guide-
lines and Objectives of the University of Florida Healthcare Educa-
tion Insurance Company, the weighted average duration of the fixed
income portfolio shall at all times be less than five years. Investments
of the University and its component units (excluding those reporting
under FASB standards) in debt securities and bond mutual funds,
and their future maturities at June 30, 2007, are shown in Tables 3
and 4, respectively.

Credit Risk: Credit Risk is the risk that an issuer or other counter-
party to an investment will not fulfill its obligations. Obligations of
the United States Government or obligations explicitly guaranteed
by the United States Government are not considered to have credit
risk and do not require disclosure of credit quality. At June 30, 2007,
the University and its component units (excluding those reporting
under FASB standards) had bonds and notes, money market funds
and bond mutual funds, with quality ratings by nationally recog-
nized rating agencies (i.e., Moody's), as shown in Tables 5 and 6,
respectively.

Custodial Credit Risk: Custodial credit risk is the risk that in the
event of the failure of the counterpart to a transaction, the Uni-
versity will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. Ex-


Table 3. University Debt Investment Maturities


Types of Investments

United States Government and
Federally-Guaranteed Obligations
Bonds and Notes
Bond Mutual Funds

Total University


Fair Value

$ 18,767,191
12,881,387
32,376,120

$ 64,024,698


Table 4. Component Units Debt Investment Maturities


Investment Maturities (in Years)

Less than 1 1-5 6-10 More than 10


$ 178,375 $ 14,060,564 $ 2,921,526 $ 1,606,726
859,640 7,956,176 1,489,343 2,576,228
32,376,120

$ 1,038,015 $ 54,392,860 $ 4,410,869 $ 4,182,954




Investment Maturities (in Years)


Types of Investments

United States Government and
Federally-Guaranteed Obligations
Federal Agency Obligations
Bonds and Notes
Bond Mutual Funds

Total Component Units


Fair Value

$ 4,646,948
16,037,164
26,688,873
9,917,513

$ 57,290,498


Less than 1 1-5 6-10


$ 992,810
16,037,164
5,572,538
1,156,359

$ 23,758,871


$ 1,068,505
12,302,658
8,761,154

$ 22,132,317


$ 10,285
1,584,179

$ 1,594,464


More than 10

$ 2,575,348

7,229,498

$ 9,804,846


University ofFlorida






Notes


Table 5. University Debt Investments Quality Ratings


Types of Investments
Bonds and Notes
Money Market Funds
Bond Mutual Funds
Total University


Fair Value
$ 12,881,387
186,367
32,376,120
$ 45,443,874


AAA/Aaa
$ 4,532,023
186,367

$ 4,718,390


AA/Aa

$ 1,001,438


$ 1,001,438


A/Ba

$ 4,711,909


$ 4,711,909


Less than AIBa


Less than A/Ba
or Not Rated
$ 2,636,017
32,376,120
$ 35,012,137


Table 6. Component Units Debt Investments Quality Ratings


Types of Investments
Bonds and Notes
Money Market Fund
Bond Mutual Funds
Total Component Units


Fair Value
$ 26,688,873
650,269
9,917,513
$ 37,256,655


AAA/Aaa
$ 21,575,211
18,077
$ 21,593,288


AA/Aa
$ 2,456,544
1,133,998
$ 3,590,542


A/Ba
$ 2,646,705
650,269
4,284
$ 3,301,258


Less than AIBa


Less than A/Ba
or Not Rated

$ 10,413
8,761,154
$ 8,771,567


posure to custodial risk relates to investment securities that are held
by someone other than the University and are not registered in the
University's name. The University has no formal policy on custodial
credit risk. The component units manage their custodial credit risk
based on various investment policies, which may be obtained sepa-
rately from the component units.

Concentration of Credit Risk: Concentration of credit risk is the risk
of loss attributed to the magnitude of the University's investments in
a single issuer. The University has no formal policy on concentration
of credit risk. The component units manage their concentration of
credit risk based on various investment policies, which may be ob-
tained separately from the component units.



l RECEIVABLES

A. Accounts Receivable

Accounts receivable represent amounts for grant and contract reim-
bursements due from third parties, various sales and services provided
to students and third parties, student tuition and fees, and interest
accrued on investments and loans receivable. These receivables, net of
an allowance for uncollectible accounts, are summarized in Table 7.




Table 7. Accounts Receivable
Grants and Contracts $ 68,815,178
Sales and Services of Auxiliary Enterprises 18,493,533
Student Tuition and Fees 2,823,342
Sales and Services of Educational Departments 1,802,645
Interest 1,249,114
Accounts Receivable, Net $ 93,183,812


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

Allowances for uncollectible accounts, and loans and notes receiv-
able, are reported based upon management's best estimate as of fiscal
year-end, considering type, age, collection history, and other factors
considered appropriate. Accounts receivable for student tuition and
fees, various sales and services provided to students and third parties,
and interest are reported net of an allowance of $9,160,258, which is
27% of total related accounts receivable. Loans and notes receivable
are reported net of an allowance of $3,132,811, which is 7% of total
related loans and notes receivable. No allowance has been accrued
for grants and contracts receivable. University management considers
these to be fully collectible.



i DUE FROM STATE
This is the amount of Public Education Capital Outlay, Alec P.
Courtelis Capital Facility Matching Trust Fund, Capital Improve-
ment Fee Trust Fund, and other allocations due to the University for
construction of University facilities.


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


r DUE FROM AND TO COMPONENT
UNITS/UNIVERSITY
The University's financial statements are reported for the fiscal year
ended June 30, 2007. The University's component units financial
statements are reported for the most recent fiscal year for which an
audit report is available. Some component units have a fiscal year
ending date other than June 30. Accordingly, amounts reported by
the University as due from and to component units on the Statement
of Net Assets may not agree with amounts reported by the compo-
nent units as due from and to the University.



S 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
teaching and work process. These inventories are normally expensed
when purchased 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 other University depart-
ments, and are not expensed at the time of purchase. These inven-
tories 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.



R CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2007, is pre-
sented in Table 8.



D 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 ap-
proximately 26 million individual items, more than half of which are
catalogued, either individually or in lots. While many of the collec-
tions 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.


Table 8. Capital Assets


DESCRIPTION

Capital Assets, Non-Depreciable:
Land
Construction in Progress
Works of Art 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
Computer Software
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 Treasures
Computer Software
Other Capital Assets
Total Accumulated Depreciation

Total Capital Assets, Depreciable, Net


Beginning
Balance

$ 10,922,527
82,467,495
416,062
$ 93,806,084

$ 1,422,851,367
75,395,828
569,972,010
240,469,764
9,815,002
613,722
32,340,101
2,277,898
2,353,735,692

572,359,514
41,268,936
333,469,362
182,892,038
2,145,948
233,069
13,376,171
1,466,107
1,147,211,145

$ 1,206,524,547


Additions

$
79,067,658
3,001
$ 79,070,659

$ 88,318,461
742,331
60,941,092
12,185,805

126,605
1,688,558
582,850
164,585,702

40,028,212
2,266,788
46,872,973
12,025,860
245,375
44,844
6,708,486
276,914
108,469,452

$ 56,116,250


Reductions

$ 8
88,418,418

$ 88,418,418

$ 495,953
34,251,356
946,676

789,689
1,094,675
37,578,349

923,256

26,743,019
946,676
118
521,831
433,193
29,568,093

$ 8,010,256


Ending
Balance

$ 10,922,527
73,116,735
419,063
$ 84,458,325

$ 1,510,673,875
76,138,159
596,661,746
251,708,893
9,815,002
740,327
33,238,970
1,766,073
2,480,743,045

611,464,470
43,535,724
353,599,316
193,971,222
2,391,323
277,795
19,562,826
1,309,828
1,226,112,504

$ 1,254,630,541


University ofFlorida






Notes


f DEFERRED REVENUE
Deferred revenue includes amounts received prior to the end of the
fiscal year but related to subsequent accounting periods. Deferred
revenue, as of June 30, 2007, is summarized in Table 9.


Table 9. Deferred Revenue
Description
Grants and Contracts
Sales and Services of Auxiliary Enterprise
Other Operating Revenue
Total Deferred Revenue


Amount
$ 23,572,331
s 5,854,853
372,605
$ 29,799,789


M LONG-TERM LIABILITIES

Long-term liabilities of the University at June 30, 2007, include bonds
and revenue certificates, installment purchase agreements, capital leas-
es, compensated absences and liability for self-insured claims.

Long-term liability activity for the fiscal year ended June 30, 2007,
is presented in Table 10.


A. Bonds and Revenue Certificates Payable

Bonds and revenue certificates were issued to construct University
facilities, including parking garages, student housing facilities, and


academic and student service facilities. Bonds and revenue certificates
outstanding, which include both term and serial bonds, are secured
by a pledge of housing rental revenues, traffic and parking fees, and
an assessed transportation fee based on credit hours. Building and
capital improvement fees, collected as part of tuition and remitted to
the State Board of Education, are used to retire the revenue certifi-
cates of the academic and student service facilities. The State Board
of Education and the State Board of Administration administer the
principal and interest payments, investment of sinking fund resourc-
es, and compliance with reserve requirements.

In the 2005-06 fiscal year, the University deposited with an escrow
agent in an irrevocable trust amounts sufficient to meet the debt ser-
vice requirements of certain University Student Housing Revenue
Bonds, Series 2000. The defeated bonds are not reported as outstand-
ing debt on the University's statement of net assets. Debt considered
defeated at June 30, 2007, totaled $26,070,000.

A summary of the University's outstanding bonds and revenue certifi-
cates payable at June 30, 2007, appears in Table 11.

Annual requirements to amortize all bonded debt outstanding as of
June 30, 2007, appear in Table 12.


Table 10. Long-Term Liabilities

Description
Capital Asset Related Debt:
Bonds and Revenue Certificates
Installment Purchase Agreements
Capital Leases
Total Capital Asset Related Debt
Other Long-Term Liabilities:
Compensated Absences
Liability for Self-Insured Claims
Total Long-Term Liabilities


Beginning Ending
Balance Additions Reductions Balance


$ 119,260,199
2,397,939
3,783,304
125,441,442

139,898,816
76,259,478
$ 341,599,736


$ $ 6,623,671
4,263,977 1,615,676
83,143
4,263,977 8,322,490


282,620,163
19,927,964
$ 306,812,104


265,135,430
8,143,892
$ 281,601,812


$ 112,636,528
5,046,240
3,700,161
121,382,929

157,383,549
88,043,550
$ 366,810,028


Current
Portion

$ 6,755,037
1,587,235
88,506
8,430,778

9,132,051
10,848,526
$ 28,411,355


A Component Unit ofthe State of Florida







2006-07 Annual Financial Report


Table 11. Bonds and Revenue Certificates Payable
Amount of
Original
Bond Type and Series Issue


Auxiliary Revenue Bonds:
1959F Housing
1984 Housing
1998 Housing
2000 Housing
2005A Housing
1993 Parking Garage
1998 Parking Garage
Total Auxiliary Revenue Bonds

State University System Revenue Bonds:
1997A Trust Fund
1998 Trust Fund
2001 Trust Fund
2003A Trust Fund
2005A Trust Fund
2006A Trust Fund
Total University System Revenue Bonds

Less: Unamortized Bonds Discounts

Plus: Unamortized Bond Premiums

Less: Unamortized Refunding Loss

Total Bonds and Revenue Certificates


$ 1,500,000
3,500,000
26,155,000
30,695,000
37,610,000
19,545,000
10,000,000
129,005,000


4,723,765
13,783,839
4,259,373
12,359,757
8,723,603
8,470,880
52,321,217






$ 181,326,217


Amount Outstanding
Principal Interest


$ 225,000
1,155,000
20,475,000
2,015,000
35,945,000
5,795,000
7,190,000
72,800,000


3,907,433
10,392,416
3,650,794
7,076,691
8,493,872
8,302,770
41,823,976

(703,760)

938,150

(2,221,838)

$ 112,636,528


$ 8,550
142,800
10,236,687
208,175
23,733,450
930,375
2,172,535
37,432,572


1,050,719
4,587,424
1,939,997
1,285,799
2,916,556
5,663,444
17,443,939


$ 54,876,511


B. Installment Purchase Agreements Payable

The University has entered into several installment purchase agree-
ments for the purchase of equipment reported at $7,527,119. The
stated interest rates ranged from 2.38% to 8.90%. Future minimum
payments remaining under installment purchase agreements as of
June 30, 2007, appear in Table 13.



C. Capital Leases Payable

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 or-
ganization (component unit) of the University. Under the terms of
the agreement, the University agreed to lease from the Foundation
a 607-space parking garage (the garage) located near the Health Sci-
ence Center Administrative Offices for a period of thirty years be-
ginning July 1, 1994. Lease payments of $100,000 annually are due
each July 1. The garage was simultaneously acquired by the Foun-


nation 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 be-
tween the Foundation and the University. Lease payments from the
University to the Foundation and from the Foundation to Shands
were based on an original construction cost of $3,000,000 and no
interest. For reporting purposes, the lease is considered a capital lease
under Financial Accounting Standards 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


University ofFlorida


Maturity
Date


Bonds
Interest
Rate


3.000%
3.000%
4.250 to 6.000%
5.000 to 5.500%
3.375 to 5.125%
5.000%
4.000 to 4.750%


4.500 to 5.000%
4.100 to 5.000%
4.000 to 5.000%
5.000%
3.625 to 4.125%
4.000 to 5.000%


I






Notes


Table 12. Bonded Debt Outstanding


Fiscal Year
Ending June 30 Principal

2008 $ 6,755,037
2009 6,232,420
2010 6,464,388
2011 6,777,263
2012 7,027,619
2013-2017 30,607,791
2018-2022 26,280,799
2023-2027 16,419,858
2028-2032 8,058,801
Subtotal 114,623,976

Less: Unamortized Bond Discounts (703,760)
Plus: Unamortized Bond Premiums 938,150
Less: Unamortized Refunding Loss (2,221,838)

Total $112,636,528


Interest

$ 5,332,950
5,051,892
4,772,460
4,481,080
4,174,101
16,294,734
9,649,073
4,330,510
789,711
54,876,511




$54,876,511


Total

$ 12,087,987
11,284,312
11,236,848
11,258,343
11,201,720
46,902,525
35,929,872
20,750,368
8,848,512
169,500,487

(703,760)
938,150
(2,221,838)

$167,513,039


Table 13. Installment Purchase Agreements
Fiscal Year
Ending June 30 Principal Interest Total

2008 $ 1,587,235 $ 153,969 $ 1,741,204
2009 1,627,161 111,868 1,739,029
2010 1,197,279 50,246 1,247,525
2011 546,434 15,697 562,131
2012 88,131 2,151 90,282


$ 5,046,240


$ 333,931


$ 5,380,171


Table 14. Capital Leases Payable
Outstanding
Interest Original Balance At
Capital Leases Rate Balances June 30, 2007

Shands Garage (607 spaces) 6.45% $ 1,382,470 $ 1,014,636
Shands Garage (800 spaces) 6.45% 2,981,939 2,685,525

Total $ 4,364,409 $ 3,700,161



Table 15. Capital Leases Principal and Interest
Fiscal Year
Ending June 30 Principal Interest Total


2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2031

Total


$ 88,506
94,215
100,292
106,761
113,647
688,113
940,563
965,865
602,199

$3,700,161


$ 238,660
232,952
226,875
220,406
213,520
947,721
695,271
369,969
79,301

$ 3,224,675


$ 327,166
327,167
327,167
327,167
327,167
1,635,834
1,635,834
1,335,834
681,500

$ 6,924,836


Health Science Center Administrative Offices for a period of thirty
years beginning March 1, 2000. Lease payments of $227,167 an-
nually 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 $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 14.

Future minimum payments under the capital lease agreements as of
June 30, 2007, are presented in Table 15.



D. Compensated Absences Payable

Employees earn the right to be compensated during absences for an-
nual leave (vacation) and sick leave earned pursuant to Board of Gov-
ernors Regulation 6C-5.920 and bargaining agreements. Leave earned
is accrued to the credit of the employee and records are kept on each
employee's unpaid (unused) leave balance. The University reports a
liability for the accrued leave; however, State appropriations fund
only the portion of accrued leave that is used or paid in the current
fiscal year. Although the University expects the liability to be funded
primarily from future appropriations, generally accepted accounting
principles do not permit the recording of a receivable in anticipation
of future appropriations. At June 30, 2007, the estimated liability for
annual, sick, and compensatory leave is $96,387,052, $60,775,502,
and $220,995, respectively, which includes the University's share of
the Florida Retirement System and FICA contributions. The current
portion of the compensated absences liability is the amount expected
to be paid in the coming fiscal year, and is based on actual payouts
over the last three years, calculated as a percentage of those years' total
compensated absences liability.



INTERDEPARTMENTAL
AUXILIARY SALES

Interdepartmental sales between auxiliary service departments and
other institutional departments have been eliminated from expenses
and revenues for reporting purposes. The interdepartmental trans-
actions eliminated in the financial statement preparation totaled
$91,331,311 for the fiscal year ended June 30, 2007.


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


B FUNCTIONAL DISTRIBUTION OF
OPERATING EXPENSES
The functional classification of an operating expense (instruction,
research, etc.) is assigned to a department based on the nature of
the activity, which represents the material portion of the activity at-
tributable to the department. For example, activities of academic
departments for which the primary departmental function is instruc-
tion may include some activities other than direct instruction, such
as research and public service. However, when the primary mission
of those departments consists of instructional program elements, all
expenses of those departments are reported under the instruction
classification. The operating expenses on the Statement of Revenues,
Expenses, and Changes in Net Assets are presented by natural clas-
sifications. Table 16 presents those same expenses in functional clas-
sifications as recommended by NACUBO.


Table 16. Functional Expenses


Functional Classification
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance of Plant
Scholarships, Fellowships and Waivers
Auxiliary Operations
Depreciation
Total Operating Expenses


Amount
(in thousands)
$ 548,535
460,665
151,812
116,585
30,496
106,589
104,633
53,469
129,969
108,469
$ 1,811,222


M OPERATING LEASE COMMITMENTS
The University has long-term commitments for assets leased un-
der operating lease agreements. These leased assets and the related
commitments are not reported on the University's Statement of
Net Assets. Operating lease payments are recorded as expenses
when paid or incurred. Outstanding commitments resulting from
these lease agreements are contingent upon future appropriations
and not considered material.


m CONSTRUCTION COMMITMENTS
The University's construction commitments at June 30, 2007, are
presented in Table 17.


* RETIREMENT PROGRAMS

A. Florida Retirement System

Most employees working in regularly established positions of the
University are covered by the Florida Retirement System (FRS).
The FRS is primarily a State-administered, cost-sharing, multiple-
employer, defined benefit retirement plan (Plan). FRS 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. Essentially, all regular employees of participating
employers are eligible to enroll as members of the FRS.

Benefits in the Plan vest at 6 years of service. 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 his or her normal
retirement date. The Plan provides retirement, disability, and death
benefits, and annual cost-of-living adjustments.

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 ben-
efit payments while continuing employment with an FRS employer.
An employee may participate in the DROP for a period not to exceed
60 months after electing to participate. During the period of DROP
participation, deferred monthly benefits are held in the FRS Trust
Fund and accrue interest.

The State of Florida establishes contribution rates for participating
employers. Employer contribution rates (none from employees) dur-
ing the 2006-07 fiscal year are presented in Table 18.

The University's liability for participation is limited to the payment
of the required contribution at the rates and frequencies established
by law on future payrolls of the University. The University's contribu-
tions for the fiscal years ended June 30, 2005, June 30, 2006, and
June 30, 2007, totaled $24,323,691, $26,643,733, and $33,877,529
respectively, which were equal to the required contributions for each
fiscal year.

Section 121.4501, Florida Statutes, provides for a Public Employee
Optional Retirement Program (PEORP). The PEORP is a defined


University ofFlorida







Notes


Table 17. Construction Commitments


Project Name

GMP Laboratory at Cancer Genetics Building
Center for Performing Arts Expansion
College of Medicine/JAX Biomedical Research Lab
Communicore Renovations Phase 2
NIMET Nanoscale Research Facility (NRF)
George Steinbrenner Band Building
Pathogen Research Facility
Harrell Center Renovation
IFAS Statewide Repairs/Renovation
Indian River REC Biological and Agricultural Research
Law School Trial Center
Biomedical Sciences Building
Campus Security Lighting
Pugh Hall (Graham Center)
RA Reitz Union
2005-06 PECO Maintenance, Repair, Life Safety, ADA, etc. (Campus Planning)
2005-06 PECO Maintenance, Repair, Life Safety, ADA, etc. (IFAS)
2005-06 PECO Maintenance, Repair, Life Safety, ADA, etc. (PPD)
2005-06 Utilities/Infrastructure/Capital Renewal/Roofs
2006-07 PECO Maintenance, Repair, Life Safety, ADA, etc. (Campus Planning)
2006-07 PECO Maintenance, Repair, Life Safety, ADA, etc. (IFAS)
2006-07 PECO Maintenance, Repair, Life Safety, ADA, etc. (PPD)
2006-07 Utilities/Infrastructure/Capital Renewal/Roofs (IFAS)
2006-07 Utilities/Infrastructure/Capital Renewal/Roofs (PPD)
Rinker Hall Construction Yard


Subtotal
Projects Under $1,000,000


Total
Commitment

$ 1,612,849
1,522,000
3,710,642
2,645,462
35,341,005
7,398,540
20,750,000
1,077,124
11,356,488
4,790,220
4,120,000
92,400,000
1,250,000
16,499,634
1,500,000
1,305,287
2,033,339
4,807,223
12,923,291
1,346,876
2,170,952
5,338,734
1,050,000
9,466,321
1,200,000

247,615,987
15,996,335

$ 263,612,322


Completed
to Date

$ 1,439,589
537,723
926,813
316,254
20,743,748
2,103,106
747,950
670,768
1,788,608
3,378,965
55,304
6,900,065
955,273
8,125,851
200,000
739,295
1,576,758
2,208,292
6,080,622
96,548
300,544
3,731,738
274,612
385,513
900,963

65,184,902
7,931,833

$ 73,116,735


Balance
Committed

$ 173,260
984,277
2,783,829
2,329,208
14,597,257
5,295,434
20,002,050
406,356
9,567,880
1,411,255
4,064,696
85,499,935
294,727
8,373,783
1,300,000
565,992
456,581
2,598,931
6,842,669
1,250,328
1,870,408
1,606,996
775,388
9,080,808
299,037

182,431,085
8,064,502

$ 190,495,587


Table 18. Florida Retirement System Rates
Class or Plan Percent of Gross Salary*


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


9.85%
13.12%
20.92%

10.91%


* Employer rates for each membership class include 1.11% for the post-employment health in-
surance subsidy (See Note 17). Also, employer rates, other than for DROPparticipants, include
.05% for administrative costs of the Public Employee Optional Retirement Program.



contribution plan alternative available to all FRS members in lieu of
the FRS defined benefit plan. University employees already partici-
pating in the State University System Optional Retirement Program
or the DROP are not eligible to participate in this program. Em-
ployer contributions are defined by law, but the ultimate benefit de-
pends in part on the performance of investment funds. The PEORP
is funded by employer contributions that are based on salary and
membership class (Regular, Special Risk, etc.). Contributions are di-
rected to individual member accounts, and the individual members
allocate contributions and account balances among various approved


investment choices. There were 1,272 University participants during
the 2006-07 fiscal year. Required contributions made to the PEORP
totaled $3,881,790.

Financial statements and other supplementary information of the
FRS are included in the State's Comprehensive Annual Financial
Report, which is available from the Florida Department of Financial
Services. An annual report on the FRS, which includes its financial
statements, required supplementary information, actuarial report,
and other relevant information, is available from the Florida Depart-
ment of Management Services, Division of Retirement.


A Component Unit ofthe State of Florida


I






2006-07 Annual Financial Report


B. State University System Optional
Retirement Program

Section 121.35, Florida Statutes, provides for an Optional Retire-
ment Program (Program) for eligible university instructors and ad-
ministrators. The Program is designed to aid State universities in
recruiting employees by offering more portability to employees not
expected to remain in the FRS for six or more years.

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 FRS, and purchase retirement and death benefits
through contracts provided by certain insurance carriers. The em-
ploying university contributes, on behalf of the participant, 10.43%
of the participant's salary, less a small amount used to cover adminis-
trative 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 con-
tributed by the University to the participant's annuity account.

There were 5,352 University participants during the 2006-07 fiscal
year. Required employer contributions made to the Program totaled
$41,120,466 and employee contributions totaled $20,068,431.


C. 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
supplement 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 em-
ployees employed before July 1, 1983, who are not entitled to ben-
efits from either a State-supported retirement system or social secu-
rity 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 an FRS member receives, which include a
social security benefit. No additional persons can become eligible for
this supplement.

There were 74 University participants during the 2006-07 fiscal


year. Required employer contributions made to the program totaled
$1,247,459. Employees do not contribute to this program.


D. Other Retirement Programs

Some University employees participate in the Florida Teacher's
Retirement System and the U.S. Civil Service Retirement System.
Three employees were covered by the Florida Teacher's Retirement
System during the 2006-07 fiscal year. Employer contributions to-
taled $39,622, and employee contributions totaled $21,818. Ninety
employees were covered by the U.S. Civil Service Retirement Sys-
tem during the 2006-07 fiscal year. Employer contributions totaled
$520,652, and employee contributions totaled $513,833.


E POST-EMPLOYMENT BENEFITS
Pursuant to Section 112.363, Florida Statutes, the Florida Legisla-
ture established the Retiree Health Insurance Subsidy (HIS) to assist
retirees of all State-administered retirement systems in paying health
insurance costs. During the 2006-07 fiscal year, the HIS program
was funded by required contributions consisting of 1.11% assessed
against the payroll for all active employees covered in State-adminis-
tered retirement systems. This assessment is included in the Florida
Retirement System contribution rates presented in Table 18.

Eligible retirees, spouses, or financial dependents under any State-
administered retirement system must provide proof of health insur-
ance coverage, which can include Medicare. During the 2006-07
fiscal year, participants received an extra $5 per month for each year
of creditable service completed at the time of retirement; however,
no eligible retiree 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.


I2 RISK MANAGEMENT PROGRAMS

A. State Self-Insurance Programs

Pursuant to Section 1001.72(3), Florida Statutes, the University
participates in State self-insurance programs providing insurance
coverage for property and casualty, workers' compensation, general
liability, and fleet automotive liability. During the 2006-07 fiscal
year, the State retained the first $2 million of losses for each occur-
rence with an annual aggregate retention of $40 million for wind


University ofFlorida






Notes


and flood and $5 million for perils other than wind and flood. After
the annual aggregate retention, losses in excess of $2 million per
occurrence were commercially insured up to $50 million for wind,
$50 million for flood, and $200 million for perils other than wind
and flood; and losses exceeding those amounts were retained by the
State. Payments on tort claims are limited to $100,000 per person
and $200,000 per occurrence as set by Section 768.28(5), Florida
Statutes. Calculation of premiums considers 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 cover-
age during the past three years.

Pursuant to Section 110.123, Florida Statutes, University employees
may obtain health care services through participation in the State's
group health insurance plan or through membership 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 Florida De-
partment of Management Services, Division of State Group Insur-
ance.



B. University Self-Insurance Programs

The J. Hillis Miller Health Science Center (JHMHC) Self-Insurance
Program was reestablished by the Board of Governors effective July
1, 2006, by amending Board of Governors Regulation 6C-10.001,
merging the then JHMHC Self-Insurance Program and the prior
University of Florida JHMHC/Jacksonville Self-Insurance Program.


The Self-Insurance Programs provide general and professional li-
ability protection for the University on behalf of the six health col-
leges of the JHMHC, which also include the Student Health Service
Auxiliary, the Veterinary Medical Teaching Hospital, and the UF
Proton Therapy Institute. 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 partici-
pate in the Self-Insurance Programs. The University is protected for
losses, which are subject to Section 768.28, Florida Statutes, includ-
ing legislative claims bills, that 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 pro-
vide $2 million per-claim protection for the participants who 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 Board of Governors Regulation 6C-10.001(2), the Uni-
versity of Florida Self-Insurance Program Council has created the
University of Florida Healthcare Education Insurance Company
(HEIC), a captive insurance company which is wholly owned by the
Board of Governors and domiciled in the State ofVermont. HEIC is
managed by a Board of Directors created by the Board of Governors.
HEIC provides coverage for claims that are in excess of the protec-
tions afforded by the JHMHC Self-Insurance Program, at limits of
$4 million per-claim coverage for insured participants subject to Sec-
tion 768.28, Florida Statutes, and $3 million per claim for insured
participants that are not subject to Section 768.28, Florida Statutes.
HEIC provides additional limits of liability coverage of $50 million
per claim and in the aggregate, which is in excess of the coverages
described above. The excess insurance is paid to claimants on a first
come-first serve basis.


TABLE 19. Liability for Self-Insured Claims
Claims Liabilities Current Claims/
Beginning Changes in
Fiscal Year of Year Estimates

2005-06 $ 65,202,520 $ 26,301,281
2006-07 76,259,478 19,927,964


Claims Payments

$ (15,244,323)
(8,143,892)


Claims
Liabilities
End of Year

$ 76,259,478
88,043,550


A Component Unit ofthe State of Florida






2006-07 Annual Financial Report


Claims settlement and adjustment expenses are accrued as expenses
and liabilities of the University of Florida JHMHC Self-Insurance
Program and University of Florida Healthcare Education Insurance
Company, for the estimated settlement value of claims that is report-
ed as a "Liability for Self-Insured Claims." The estimated settlement
value of claims was determined based on the judgment and experience
of management and the Self-Insurance Program Councils 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 Programs at June 30, 2007, was $88,043,550 for com-
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 con-
tracts have been purchased in the claimants' names, resulting in the
removal of the related liabilities from the Statement of Net Assets, to-
tals $20,007 for the Self-Insurance Programs at June 30, 2007. These
annuities have been assigned to third parties, and all claimants have
fully and completely released trust fund participants from all actual
and contingent liability.

Changes in the balances of claims liabilities for the Self-Insurance
Programs during the 2005-06 and 2006-07 fiscal years are presented
in Table 19.


M LITIGATION
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 legal counsel and management,
should not materially affect the University's financial position.


e COMPONENT UNITS
The University's component units, as discussed in Note 1, com-
prise 100% of the transactions and account balances of the aggre-
gate discretely presented component units' columns of the financial
statements. Summary financial information from the most recently
available audited financial statements for these component units is
presented on the following pages in Tables 20, 21, and 22.


E SEGMENT INFORMATION
A segment is defined as an identifiable activity (or grouping of activi-
ties) that has one or more bonds or other debt instruments outstand-
ing, with a revenue stream pledged in support of that debt. In addi-
tion, the activity's related revenues, expenses, gains, losses, assets, and
liabilities are required to be accounted for separately. Transportation
and Parking Services provides the University with safe and adequate
parking facilities. Several parking garages have been constructed from
the proceeds of revenue-backed debt instruments. The Division of
Housing 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 23.


University ofFlorida







Notes



Table 20. Direct-Support Organizations
(amounts expressed in thousands)
University The University
University of Florida The University of Florida
of Florida Research Athletic Gator Law Center
Foundation, Inc. Foundation, Inc. Association, Inc. Boosters, Inc. Association, Inc.
6/30/2007 6/30/2007 6/30/2007 6/30/2007 6/30/2007


Condensed Statement of Net Assets
Assets
Due from Component Units/University
Other Current Assets
Capital Assets, Net
Other Noncurrent Assets


Total Assets


Liabilities
Due to Component Units/University
Other Current Liabilities
Noncurrent Liabilities


Total Liabilities


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


Total Net Assets


$ $ 2,485 $ 1,989 $ 7,166 $ 5,603
107,065 142,933 60,994 3,951 271
35,847 138,655 28
1,404,990 1,116 40,930 485 489

1,547,902 146,534 242,568 11,630 6,363



7,770 14,449 154 6,680
8,164 25,470 61,662 381 66
31,132 33,400 86,556 111

47,066 73,319 148,372 7,172 66



6,915 55,131 28
908,281 -- 3,905 2,042
557,091 5,896 3,792
28,549 73,215 33,169 525 463

$ 1,500,836 $ 73,215 $ 94,196 $ 4,458 $ 6,297


Condensed Statement of Revenues, Expenses,
and Changes in Net Assets
Operating Revenues
Operating Expenses


Operating Income (Loss)


$ 93,762 $ 56,371 $ 53,811 $ 37,608 $ 727
(107,895) (55,544) (85,099) (2,849) (951)


(14,133)


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


Change in Net Assets


827 (31,288)


$ 1,604
(1,454)


34,759


191,462 15,452 7,471 1,170 827
93,293 15
(216) (1,614) (2,042) 80
(3,130) 41,528 (35,909) (750)


267,276


Net Assets, Beginning of Year

Net Assets, End of Year


14,665


15,669


1,233.560 58,550 78,527 4,423 6,364

$ 1,500,836 $ 73,215 $ 94,196 $ 4,458 $ 6,297


2,414

$ 2,636


A Component Unit ofthe State of Florida


Florida
Foundation
Seed
Producers, Inc.
6/30/2007


$
2,696
995



3,691



1,037
18



1,055



995



1,641

$ 2,636


64

8







2006-07 Annual Financial Report


University
Southwest Citrus of Florida
Florida Fla. Research Research and Leadership
4-H Club and Education Education & Education
Foundation, Inc. Foundation, Inc. Foundation, Inc. Foundation, Inc.
3/31/2007 6/30/2007 6/30/2007 12/31/2006


$ 2,872 $
1,805


$
68
124


19 $
858
33


2,875
1,219


Treasure Coast
Agricultural
Research
Foundation, Inc.
6/30/2007




$


80 -


4,757 192 910 4,094


University
of Florida
Alumni
Association, Inc.
6/30/2007


- $


University
of Florida Total
Investment Direct
Corporation Support
6/30/2007 Organizations


$
1,082
79


23,009
323,382
175,763


1,448,090

1,161 1,970,244


442


72 28 771


2,825 2,232
1,168 -
692 68 915 1,091

$ 4,685 $ 192 $ 882 $ 3,323





$ 1,522 $ 82 $ 464 $ 2,548
(1,784) (51) (189) (2,674)


(262)



397


17 4


30,090
642 97,274
391 151,590

1,033 278,954



2 -79 63,241
S- 919,285
S- 567,947
440 49 140,817

$ 442 $ $ 128 $ 1,691,290





$ 1 $ 1,744 $ $ 250,244
(4) (5,154) (1,683) (265,331)


(3,410)


(1,683)


(15,087)



217,306
93,587


256 (3,507)
S3,410 1,698 6,847


299,146


4,254 159 598 3,015

$ 4,685 $ 192 $ 882 $ 3,323


182 98 1,392,144

$ 442 $ $ 128 $ 1,691,290


University ofFlorida







Notes


Table 21. HEALTH SCIENCE CENTER AFFILIATES
(amounts expressed in thousands)


Condensed Statement of Net Assets
Assets
Due from Component Units/University
Other Current Assets
Capital Assets, Net
Other Noncurrent Assets


Florida
Clinical
Practice
Association, Inc.
6/30/2007



$ 15,392
50,081
3,786
38,838


108,097


Total Assets


Liabilities
Due to Component Units/University
Other Current Liabilities
Noncurrent Liabilities


16,826
20,553


37,379


Total Liabilities


University of
Florida
Jacksonville
Physicians, Inc.
6/30/2007



$ 2,955
51,214
11,076
124


65,369



5,300
17,523
15,455


38,278


Faculty
Associates, Inc.
6/30/2007



$ 848
6,644


7,492


1,923


Net Assets
Invested in Capital Assets, Net of Related Debt 3,391


67,327


$ 70,718


Condensed Statement of Revenues, Expenses,
and Changes in Net Assets
Operating Revenues
Operating Expenses


$ 236,304
(184,578)


26,780


$ 27,091


$ 159,522
(162,829)


5,569


$ 5,569


$ 22,706
(13,583)


Operating Income (Loss)


Nonoperating Revenues (Expenses)
Investment Income
Other
Transfers from/(to) Component Units


Change in Net Assets


Net Assets, Beginning of Year


Net Assets, End of Year


71,378


$ 70,718


(475)


24,488


6,044


$ 27,091 $ 5,569


A Component Unit ofthe State of Florida


Restricted
Unrestricted


Total Net Assets


51,726


(3,307)


9,123


3,041
(82,508)
27,081


1,504
(6,499)
10,905


179
(9,427)
(350)


2,603







2006-07 Annual Financial Report


Florida
Health
Professions
Association, Inc.
6/30/2007


106 $
3,010


3,116


686
1,112


1,798


1,318


$ 1,318




$ 8,787
(2,486)


6,301



104


UF College of UF College of
Nursing Pharmacy
Faculty Faculty
Practice Practice
Association, Inc. Association, Inc.
6/30/2007 6/30/2007


88 $
4,026
883


865 $
218


4,997 1,083


312 73


3,802 1,010


$ 4,685 $ 1,010




$ 870 $ 103
(515) (98)


Florida
Veterinary University of
Medicine Florida
Faculty Jacksonville
Association, Inc. Healthcare, Inc.
6/30/2007 6/30/2007


402 $
3,558


Faculty
Clinic, Inc.
6/30/2007


266
3,337


2,385
4,028
1,604


8,017


3,960 3,603


688 3,234


3,337


3,272 (2,968)


$ 3,272 $ 369




$ 7,081 $ 365
(929) (18,107)


6,152


444
6,001


6,484




(2,272)
1,500
2,305


$ 1,533




$ 418
(1,234)


(17,742)


(6,435) 50 (282)
17,692 933


(5,749)


719


$ 1,318


4,133 961


$ 4,685 $ 1,010


3,484 369 1,548


$ 3,272 $ 369 $ 1,533


Total
Health
Science
Center
Affiliates



$ 20,656
121,402
23,110
40,566


205,734



7,012
40,036
43,121


90,169




5,650
1,500
108,415


$ 115,565




$ 436,156
(384,359)


51,797



5,288
(105,156)
50,512


2,441


113,124


$ 115,565


University ofFlorida







Notes


Table 22. SHANDS TEACHING HOSPITAL AND OTHERS
(amounts expressed in thousands)


Condensed Statement of Net Assets
Assets
Due from Component Units/University
Other Current Assets
Capital Assets, Net
Other Noncurrent Assets


Total Assets


Liabilities
Due to Component Units/University
Other Current Liabilities
Noncurrent Liabilities


$ 6,465
668,498
704,911
317,463


1,697,337



8,625
209,052
687,421


905,098



123,484
289
4,757
663,709


$ 792,239


Total Liabilities


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


Total Net Assets


397


75


296


$ 322


$ 93
122
787
798


1,800


490
521


1,011


636


$ 789


$ 6,839
668,710
705,724
318,261


1,699,534



8,625
209,617
687,942


906,184



123,663
289
4,757
664,641


$ 793,350


Condensed Statement of Revenues, Expenses,
and Changes in Net Assets
Operating Revenues
Operating Expenses


$ 1,604,261
(1,501,410)


$ 1,176
(1,161)


$ 1,280
(1,301)


$ 1,606,717
(1,503,872)


Operating Income (Loss)


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


Change in Net Assets


Net Assets, Beginning of Year


Net Assets, End of Year


772,682 293 825


$ 792,239 $ 322 $ 789


773,800


$ 793,350


A Component Unit ofthe State of Florida


Shands
Teaching
Hospital
& Clinics, Inc.
6/30/2007


Baby Gator
Childcare
Center, Inc.
6/30/2007


University
Village
Apartments, Inc.
6/30/2007


Total
Shands
Teaching
Hospital
and Others


102,851


102,845


30,798
134
(88,008)
(26,218)


(21)


19,557


30,818
134
(88,029)
(26,218)


19,550


I







2006-07 Annual Financial Report


Table 23: SEGMENT INFORMATION


CONDENSED STATEMENT OF NET ASSETS
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


Total Net Assets


Transportation
and Parking Services


$ 4,780,281
29,429,291
3,400,411

37,609,983


3,767,550
14,531,150

18,298,700


12,859,635
3,403,310
3,048,338

$ 19,311,283


CONDENSED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
Operating Revenues (Expenses)
Operating Revenues
Depreciation Expense
Other Operating Expenses


Operating Income


Nonoperating Revenues (Expenses)
Investment Income
Interest Expense
Other
Capital Related Expenses
Transfers

Net Nonoperating Revenues (Expenses)

Change in Net Assets

Adjustment to Beginning Net Assets


$ 15,978,346
(1,853,713)
(11,434,000)

2,690,633


404,250
(897,763)
(87,384)

(461,585)

(1,042,482)


$ 38,840,026
(3,571,064)
(27,136,810)

8,132,152


1,329,111
(2,948,815)
(1,778,277)
(716,117)


(4,114,098)


1,648,151


4,018,054

6,897,094


Net Assets Beginning of Year

Net Assets, End of Year


CONDENSED STATEMENT OF CASH FLOWS
Net Cash Provided (Used) by:
Operating Activities
Noncapital Financing Activities
Capital and Related Financing Activities
Investing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year


17,663,132

$ 19,311,283



$ 3,950,054
(615,555)
(3,444,638)
(526,739)


12,615,451

$ 23,530,599



$ 12,315,362
(2,374,552)
(7,303,973)
2,039,193


(636,878)


2,400

$ (634,478)


Cash and Cash Equivalents, End of Year


4,676,030


11,472,408

$ 16,148,438


University ofFlorida


Division of
Housing


$ 16,644,482
65,909,999
4,378,116

86,932,597


6,207,803
57,194,195

63,401,998


12,092,568
3,632,424
7,805,607

$ 23,530,599







Supplemental Information


FINANCIAL AID ADMINISTERED for the Fiscal Year Ended June 30, 2007 (unaudited)


2006-07
Number of
Recipients


7,742
1,992
634
1,590
2,631
58
18,507


Federal Programs
Pell Grants
Supplemental Educational Opportunity Grants
National SMART Grant
Academic Competitiveness 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
Student Aid For Education (SAFE) Loans
University of Florida Long-Term Loans
Total Loans Administered


Scholarships and Grants:
Racing
State of Florida Financial Aid Programs
Lottery Trust Grant Funded Waivers
Total State Scholarships and Grants Administered


Total State Financial Aid Administered


Other Scholarships and Grants
Institutional Grants:
College Awarded Scholarships
Graduate Tuition Remission Waivers
General Scholarships
Total Institutional Grants


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


Aid
Disbursed


$ 20,170,115
2,114,229
1,889,224
1,380,553
7,392,790
829,314
160,093,178


33,154 $ 193,869,403


745
441
104
1,290



561
31,269
663
32,493


$ 679,023
812,055
329,722
1,820,800



606,875
81,962,599
1,129,637
83,699,111


33,783 $ 85,519,911


16,869
7,171
6,134
30,174



4,748


$ 37,371,252
9,720,594
12,802,646
59,894,492



9,044,799


Total Other Scholarships and Grants


Fee Waivers
Non-Resident Tuition Waivers
Other Waivers


Total Fee Waivers Administered


Total Financial Aid Administered


34,922 $ 68,939,291


1,212
10,526


$ 5,883,503
22,163,636


11,738 $ 28,047,139


$ 376,375,744


A Component Unit ofthe State of Florida


M











UNIVERSITY OF FLORIDA

ANNUAL FINANCIAL REPORT 2006-07


UNIVERSITY OF FLORIDA BOARD OF TRUSTEES
Carlos J. Alfonso
Tampa, FL

C. David Brown II
Orlando, FL

J. Courtney Cunningham
Pinecrest, FL

Roland Daniels
Gainesville, FL

Manny A. Fernandez
Ft Myers, FL


W. A. "Mac" McGriffIII
Jacksonville, FL

Joelen Merkel
Ocean Ridge, FL


Dianna Fuller Morgan
Windermere, FL

Ryan Moseley
University ofFlorida
Student Body President

Cynthia F O'Connell
Tallahassee, FL


Earl Powell
Miami, FL


Alfred C. Warrington IV
Freeport, TX


Richard A. Yost
University ofFlorida
Faculty Senate Chair


EXECUTIVE OFFICERS
J. Bernard Machen
President

Jane Adams
Vice President for University Relations

Douglas J. Barrett
Senior Vice Presidentfor Health. i

Kyle Cavanaugh
Senior Vice PresidentforAdministration

Jimmy G. Cheek
Senior Vice Presidentfor Agriculture
and Natural Resources

Janie M. Fouke
Provost and Senior Vice President for Academic Affairs

Jamie Lewis Keith
Vice President and General Counsel

Winfred M. Phillips
Vice President for Research

Ed Poppell
Vice President for Business. I

Paul A. Robell
Vice President for Development and Alumni. I

Patricia Telles-Irvin
Vice President for Student. I


PRINCIPAL FINANCE AND
ACCOUNTING OFFICIALS
Michael V. McKee
Assistant Vice President
and University Controller

Greg DuBois
Senior Associate Controller for University Purchasing
and Disbursement Services

Stuart E. Hoskins
Senior Associate Controller for University
Financial Services and Treasury Management

Gloria Sheffield
SeniorAssociate Controller for Operational Controls and -.
Financial Reporting and CostAnalysis

Kathleen Tillett
Senior Associate Controller for General Accounting, University
Payroll, Tax Services andAsset Management

Diego Vazquez
Senior Associate Director for Contract and GrantAccounting
Services




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