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 Front Cover
 Table of Contents
 Preface
 Introduction from the Presiden...
 University of Florida overview
 Introduction from the Vice President...
 Financial statements
 Supplemental information
 Back Cover














Group Title: University of Florida Annual Financial Report. 2000-2001.
Title: University of Florida Annual Financial Report
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Permanent Link: http://ufdc.ufl.edu/UF00072278/00009
 Material Information
Title: University of Florida Annual Financial Report
Series Title: University of Florida Annual Financial Report
Physical Description: Serial
Creator: Finance and Accounting Division
Publisher: Office of Administrative Affairs, University of Florida
Publication Date: 2008
 Record Information
Bibliographic ID: UF00072278
Volume ID: VID00009
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Preface
        Page 1
    Introduction from the President
        Page 2
        Page 3
    University of Florida overview
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
    Introduction from the Vice President for Business Affairs
        Page 14
        Page 15
    Financial statements
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
    Supplemental information
        Page 48
        Page 49
    Back Cover
        Page 50
Full Text

































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Inrduto fro theU Prsdn
U ivesit of Foid Ovrve 4* 6 I

Inroucio fro the Vic Arsdn fo Buins Afars1
Finaci. Statements






Sttmeto Cas Flw 24
Note to th Fiaca Sttm ns2
Supemna InA orma tion


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i n every corner of the globe,

Gators accomplish remarkable

feats with innovative thinking and inspired

collaboration. Gators know no boundaries.

The Gator Nation is Everywhere.







UF overcomes challenges to move forward in 2008

At the close of 2008, the national economic downturn and the budgetary difficulties facing Florida
and the University of Florida dominate the conversation, as they have for two years now.

People's concerns are legitimate. It has not been an easy period for UF or for the university
community.

But far from becoming discouraged, UF faculty, staff and students rallied behind the institution
and their work here. UF and its programs continued to make progress, even scoring impressive
gains in key areas. Most important, the university preserved its fundamental mission of serving the
state and nation a mission all the more important in an era when the public is especially in need
of strong, effective public institutions.

With that in mind, let me give you some snapshots of positive developments in 2008...


Our already excellent applicants improved
UF's 2008-09 entering class of 6,537 students was drawn from a record 28,121 applications, up 16
percent from the previous year. We accepted only 39 percent of applicants for this year's class, our
smallest percentage ever. This year's freshmen had an average GPA of 4.18 and SAT of 1293, both
up from last year. The increasing quality of our applicants is a real testimony to the University of
Florida's enduring quality in students' and families' eyes.


We welcomed more students from low-income backgrounds
While UF may be becoming more selective, we are more inclusive of students from a diversity
of economic backgrounds. With this year's class of 375, we now have more than 1,000 Florida
Opportunity Scholars students who are the first in their families to attend college and
whose families earn less than $40,000 annually. The even-better news: they're doing great.
The retention rate for last year's class topped 96 percent. Sixty percent completed their first
year with GPAs of 3.0 or better. In October, we announced that head men's basketball coach
Billy Donovan and head football coach Urban Meyer will lead a drive to raise $50 million to
continue this valuable program.


UF launched several high-profile research projects
We received $15 million in state funding to create the Florida Energy Systems Consortium to
bring together Florida's universities on renewable energy. Our Ordway-Swisher Biological Station
was designated a future site in the National Science Foundation-sponsored National Ecological
Observatory Network, or NEON. Faculty received several major grant awards, including $3
million from the Juvenile Diabetes Research Foundation to fight the growing problem of youth
diabetes.


Our research commercialization efforts achieved a banner year
UF licensed or optioned a record 75 faculty-developed technologies this past fiscal year. UF spinoff
companies also received a record $100 million-plus in venture capital. By making available some
of our faculty's most promising medical, agricultural and engineering research, these companies
will contribute to Florida's high technology economy. That's incredibly important in a time when
high-skill, high-wage jobs are a shrinking commodity.







We continued to build and upgrade our campus facilities
We completed the Nanoscale Research Facility, the Southwest Stadium Expansion, Steinbrenner
Band Hall and Pugh Hall earlier this year. Over the next year, we expect to finish and occupy
the Shands at UF Cancer Center, the Biomedical Sciences Building and the Pathogens Research
Facility. We also expect to break ground on the Business Graduate Studies Building and the Harn
Museum Asian Art Wing.


We launched a new national-level public policy institute
Last spring we opened the Bob Graham Center for Public Service, a public policy institute aimed at
training the next generation of state and national leaders to confront issues vital to the interests of
Florida and the nation. The center's opening was well-timed with the election year. It immediately
began hosting internationally prominent speakers in politics, journalism, history and other areas
of public interest, drawing large crowds from the university and wider communities.


We set in motion new hires of faculty and staff
There was a rare bright spot in an otherwise challenging financial year: differential tuition, which
for the first time allowed UF to add a surcharge to the statewide tuition hike. We anticipated $1.8
million in new dollars in the first year enough to hire 17 to 22 new faculty members and several
academic advisors. Each new class will pay the differential, eventually adding $22 million to our
hiring budget a terrific permanent source of new faculty and staff talent.


UF fundraising efforts proved fruitful
We launched the public phase of the Florida Tomorrow capital campaign last September with
about $500 million already committed. By this past September, we had raised more than $200
million, for a campaign total of more than $700 million. With this level of performance, I am
confident that we will reach our campaign goal of $1.5 billion despite the downturn.


We received several notable awards
The Sierra Club ranked UF seventh among the nation's top 10 "green schools," valuable recognition
of our progress in our four-year-old sustainability initiative. Math professor John Thompson shared
the Abel Award, the highest award in mathematics, with a professor in France. Thanks to more
than 72,000 hours of student community service, UF was named as a 2007 Honor Roll member
of the President's Higher Education Community Service program. These are just a few of many
awards received by our institution, its faculty and students in the past 12 months.

There is no question that the University of Florida will face significant challenges in the coming
year. That said, the positive developments of this past 12 months demonstrate that we can move
forward in significant ways no matter what circumstances we face. I am confident that with the
help of our dedicated and passionate faculty and staff, the university will continue to grow and
prosper. Go Gators!





J. Bernard Machen
President


A Component Unit of the State of Florida 3
















A&6noma





















Flrd in some imotn and vaual way. So take






















41P
U...
I: SS. S 5 5- S.

S - -- S* 66 .


























In the 1940s, collaborative work between UF's

Citrus Research and Education Center, the Florida

Citrus Commission and the U.S. Department of

Agriculture led to breakthroughs in production

offrozen orange juice concentrate, spawning an

entire industry and making orange juice available

worldwide.


:tle:..
j


0 UF's Center for Food Distribution and
Retailing, the first of its kind in the
world, conducts research and education
on the entire food distribution chain.


0 UF is a leader in developing processes to
produce cellulosic ethanol, a fuel derived
from fibrous plant material such as sugar-
cane, grasses and wood waste.


* Two UF grads are currently in the NASA
astronaut program, and seven have previ-
ously served.


B UF partnered with Spain to create the
world's largest telescope in the Canary
Islands and is a nationally renowned
leader in specialized aeronautics and
space research.


* UF has 331,500 living alumni in all 50
statess and 137 foreign countries.


* In 2005, UF became the first university
in the world to be designated a Certi-
fied Audubon Cooperative Sanctuary for
environmental and wildlife management.











The UF Health


Science Center serves
as the major referral
facility for patients
in the Southeast.
Proton beam therapy
represents a major
step forward in the
treatment of cancer,
and our proton beam
cancer treatment
facility is one of only
five in the U.S.


" In the past four decades, more presidents
of the American Bar Association have
come from the UF Levin College of Law
than any other U.S. law school.

* UF is one of the largest research universi-
ties in the nation. In 2006, the Milken
Institute named UF one of the top five
U.S. institutions in the transfer of bio-
technology research to the marketplace.

* UF was seventh among all universities
public and private in the number
of U.S. Patents awarded.

* Since 2004, UF has ranked No. 1
nationally for research and development
expenditures in the agricultural sciences.





a distinguished and highly honored

FACULTY


..... .... ..i.. ... .

H "I" E










*ooefat incud Puite Prz wines a reonie pine in

avato en9gineering a leain scoa 9neooerc,, thre 9winner

of NA4 to 9,,,fo 9esarc, 9,, of Ihu chre memer 9fth

9,la Hal 9f Fam and a wine 9f th 9mtsna Int~ 9 war

9o 9osevai on.9


* More than two dozen faculty are
members of the National Academies
of Science and Engineering and the
Institute of Medicine or a counterpart
in a foreign nation.


* Professor John Griggs Thompson won
the 2008 Abel Prize, the world's most
prestigious award in mathematics.


* In 2007, three UF professors won the
prestigious Humboldt Prize, which
honors international research coopera-
tion. Only one other institution, Cor-
nell University, had as many winners.


* The university faculty currently has 62
Eminent Scholar Chairs.


* UF has been awarded national scientific
centers including the McKnight Brain
Institute, the Engineering Research
Center for Particle Science, and the Na-
tional High Magnetic Field Laboratory.


* Since 1985, the University of Florida
has been a member of the Association of
American Universities, the prestigious
higher-education organization compris-
ing the top 62 public and private institu-
tions in North America. UF is the only
member institution in Florida.


Research Awards by Sponsor
for 2007-08 Fiscal Year
(in millions)


Foundation


Other
$15.9
3%


$11.4
13%



















1$11.
17%^^^^~ i^^








Federal Awads by Agenc
for 007 8 fscalyear(inmillons


NIH
NSF
USDA
DOD
HRSA
Education
DHHS
Veterans Affairs
Energy
NASA
Commerce
Interior
DOT
EPA
CDC
SAID
Other Federal

Total


$ 126.6
39.2
32.4
29.4
16.7
15.1
13.4
10.3
10.0
5.9
5.7
5.5
4.0
1.6
1.4
1.3
4.1

$ 322.6


A Component Unit of the State of Florida 9












University of Florida






,STUDENTS


are among the nation's best,

brightest, and most diverse.




Ha. un1 I o b C oI llee Iia S oo


2007 2006


oumm..w L, mmuum

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
Interdisciplinary Ecology
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


925
4,483
652
5,767
391
935
349
1,947
7,118
1,264
222
2,135
52
148
2,987
1,422
14,364
850
122
1,111
656
1,913
121
1,881
520


SUB-TOTAL


852
4,450
668
5,543
385
977
380
1,914
6,832
1,247
213
2,098
27

3,041
1,489
14,582
830
103
1,040
620
1,923
120
1,728
509


52,335 51,571


Minus Concurrent Degree


64

52,271


TOTAL


51

51,520


2005

873
4,084
672
5,546
380
996
417
1,898
6,635
1,230
186
2,028
39

2,973
1,363
14,496
851
217
926
640
1,873
120
1,605
519


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


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


50,567 48,828 48,731


55

50,512


63

48,765


58

48,673


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





Florida leads all schools in the Southeastern

Conference with 2,146 Academic Honor Roll

recipients since 1980.


" UF's freshmen retention rate of 94
percent is among the highest in the
United States.



B The Honors Residential College at
Hume Hall is the first honors residential
college in the United States designed and
built specifically for honors students.



* Nearly 2,000 freshmen and sophomores
participate in the honors program, which
offers 90 tol00 courses per semester.



* UF ranked third in the AAU for profes-
sional degrees awarded to African-Amer-
ican students in 2006-2007 and second
in the number of professional degrees to
Hispanic/Latino students.


10 UniversityofFlorida














































UF's 51,000

students come


from all 67 Florida

counties, all 50

states and more

than 100 foreign

countries.


In-State Enrollment by County Fall 2007
SANTA HOLMES
ROSA 12 JACKSON
171 OKALOOSALTON WASHINGTON GADSDEN JEFFERSON HA
ESCAMBIA 453 WALTON JEFFERSON
470 32 13 CALHOUN 32 LEON 11 MADISON
BAY 12 LIBERTY 691 18 SU
289 4 WAKULLA
8 TAYLOR
GULF LAFAYE
FRANKLIN 26 8
DIM
18


Total In-State
Enrollment: 42,825


II- Degrs A w B'y Ty pe IOf --


Degree
Bachelor's
Master's
Doctor of Philosophy
Juris Doctor
Doctor of Pharmacy
Doctor of Medicine
Doctor of Dental Medicine
Doctor of Veterinary Medicine
Engineer (A)
TOTAL
(A) Data previously included in Masters
Source: UFOffice of Institutional Planning and Ri


2007-08 2006-07 2005-06 2004-05 2003-04


MILTON NASSAU
16 COLUMBIA 142
ANNEE 1 BAKER DUVAL
28 2,375
70 UNION
0 U BRAD- CLAY
TTE L 34 FORD 629 STJOHNS
GIL- 69 545
CHRISTALACHUA PUAM 545
E 70 4,623 128 FLAGLER
LEVY 135
102 MARION
831 VOLUSIA
973
CITRUS LAKE
217 SUMMER 411 SEMINOLE
HERNANDO 49 1,471
138 ORANGE
PASCO 2,741
539 OSCEOLA BREVARD
PINELLAS HILLS- POLK 325 1,478
PINELLAS BOROUGH POLK
2,285 2 692 730
2,692 INDIAN RIVER
305
MANATEE HARDEE OKEECHOBEE
448 17 HIGHLANDS 40 STLUCIE
343
DESOTO 121RTIN
SARASOTA 33 412MARTIN
829 412
829 CHARLOTTE GLADES
175 6


LEE HENRY
778


2
14,244 13,658 13,029 13,038 13,254


PALM BEACH
3,077


BROWARD
COLLIER 5,042
505
MIAMI-
DADE
MONROE
128 4,189


A Component Unit ofthe State of Florida 11


)









TheUF CULTURAL PLAZA

provides world class experiences in natural history and the arts


With more than 28 million specimens, UF's
Florida Museum of Natural History has the
nation's fifth-largest natural history collection,
including one of the world's largest collections
of butterflies and moths at more than 6 million.


* UF's McGuire Center for Lepidoptera
and Biodiversity at the Florida Museum
of Natural History is the world's largest
butterfly and moth research facility.

" UF Performing Arts educates, entertains
and challenges more than 100,000 Florida
residents, students and others annually at
its three venues Phillips Center for the
Performing Arts, University Auditorium
and the Baughman Center.


* The Samuel P. Harn Museum of Art, one
of the largest university art museums in
the country, each year inspires and edu-
cates some 100,000 university students,
faculty, community members and other
visitors through the power of the visual
arts. The museum's collections are used
extensively for research and teaching.


0 UF Performing Arts
provides healing
through the arts,
bringing world-class
performing artists
into health-care
settings through the
AIM Together pro-
gram, a collaboration
between UFPA and
Shands HealthCare.


12 UniversityofFlorida


>




























~HhIflh







I am pleased to present the University of Florida Annual Financial Report for the
2007-08 fiscal year. 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 an increase in net assets of $194.1 million, or 10.2
percent, reaching a year-end balance of $2.1 billion. The Management's Discussion
and Analysis, the financial statements and the notes to the financial statements
document the University's financial strength and stability for this year.

During the year significant capital resources were devoted to providing the
facilities necessary for fulfilling the instruction, research and clinical missions of
the University. Construction projects completed included: NIMET Nanoscale
Research Facility, Pugh Hall, Indian River Research and Education Center Biological
and Agricultural Research Building, and Phillips Center for the Performing Arts
Expansion. Construction continues on several major projects including Southwest
Parking Garage Complex, Biomedical Science Building, George Steinbrenner Band
Building and the Pathogens Research Facility.

The University of Florida continues to maintain a strong financial position. I am
confident that the faculty and staff will meet challenges with vigor and creativity
ensuring the University's future success.





Ed Poppell
Vice President
for Business Affairs
























Ed Po *e I I, Vic PrsdnIo usns far







33
gg-1, a4a











AUDITOR GENERAL -

STATE OF FLORIDA
G74 Claude Pepper RBuilding
111 West Madison Street
DAVIn W, MAr S. CPA Taallah.usee. Florida 32399-1450 PHONE: 850-48-5534
At I'irrm C.NEIRAL FAX: 850-88-6975
The President ol the Senate. the Speaker of he
House of Represenlalives. and Ire
Legislative Auditing Commiltee

INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS

We have audited tne accompanying financial slaements of he Uriversity of Flnda a component uni of rne State 0o Florida. and ts aggregate
discretely presented oomponen units as of and for the fiscal year ended June 30, 2008, which colleciely comprise Ihe Universitys basic
financial statements as shown on pages 22 through 47. These financial statements are e responsbilily of Universtly management Our
responsibility is to express opinions n these financial statements based on our audit We did not audit ne rfnancial statements ol me
aggregate itcretely presented component unrts. as descnoed in note 1 to the financial statements, which represent 100 percent of the
transactions and account balances of he aggregate discrete presented component unrs' columns Those finan al statements were audited
by other auditors wose reports thereon have been furnished to us. an our opron on the financial statements insolar as It relates to the
amounts included for the aggregate discreely presented component units, is based solely upon the reports of the other auditors. The prior
yea partial complarae inkjmari was denied fron the Unriersly's 2006-07 Finacial statements and, in our report dated January 29. 2008.
we expressed an unqualified opnron ho Ire respecve financial statements
We conducted our auil in accordance rth audmig standards generally accepted in the Unrteo Stales o Arnenca and tme standards applicable
to final audits contained in GCoveiimm Aud ting Sarendeds issued by the Comiptroiler General cf Ihe United Silaes Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the final statements are free of material
misstatement. An audii includes examining, n a test basis, evidence supporting the amounts and disclosues in the iinan al staemets. An
audit also includes assessaig the accouting principles used and signicat eimates made by m ianagenie, as well as evaluating the overall
finanal statement presetatio We beive that our audit and the reports of the other audils provide a reasonable basis for or opinions.
In our opiron based on our audit and tie reports of the other auditors, the inancal statements reerred to above present farty, in al material
respects, the respectre financial position of the Universty o Florida and ol its aggregate discretsly presented component unis as of June 30,
2008. and the especive changes in financial position and cash flows thereof for the Lscal yea then ended, in coaformnny wi accounts
principles general accepted in the United Slates of Amenca
The financial slateents include pnor-year partial comparative information Such information does not include al of the information required to
constitute a presentation in conformity with accounting principles generally accepted in he United States of Aerica Accordingly, such
inforimahon should be read in conjuncton mih the University s financial stalrnents for the fiscal year ended June 30. 2007, Iron which such
partial infoabon was delved
In accordance with Govwermmr Audat Standards, we have also issued our report dated January 26. 2009. on our consideration of the
University of Floridas internal control over financial reporting and on our tests o its compliance wth certain provisions of laws, rues,
regulations, contracts, and granl 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 AJUDITG STANDARDS. The purpose of tal report s
to describe te scope of our resting of intenal control ove financial reporting and compance and Ibe results o hat lesting and not to provide
an opirion on mnlemal conro oer financial reporting or on compance That report s an integral part of an audit performed in accordance with
Goermment A udfrig andr and should be considered in assessng the results of our audit Tha report included as a part of our
separately issued audit report on the Uniersity.
The MANAGEMEW"S DISCUSSION AND ANALYSIS on pages 17 through 21 is not a required part of the basic financial staments, but is
supplenentary information required by accounting principles general accepted in the Unted states of America We have applied certain
limited procedures, whid consisted nricipally of inquines of ranagen*ent regarding the methods of measurement and presentalon otf he
required supplementary informallon. However, we did not audit he information and express no opinion on i
Our audit was conducted for the purpose of forming opinions on the inancal statements that colectely cornpnse the Unverseiy of Flonda's
baic nancial staemens The ;nlrodLucry section, overview, and supplensrentary financial aid inform-alin a presented for purposes of
additional analysis and are not a required part o the basic financial statements. The introductory and overview sections (pages 2 through 15).
as well as the suppeminlery financial ad informafon tppage 48) have not been subjected to the adding procedures applied in the audit of the
basic financial staleents ad. acordingly, we express no opinion on them
Respectfuly submitted.


David W. Martin, CPA
January 26, 2009


16 UniversityofFlorida






























From the I ice Presidellt fr Busilness Afftiirs


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, 2008, 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 $2.7 billion at June 30, 2008. This
balance reflects a $247.1 million, or 10.3%, increase from the 2006-
07 fiscal year, resulting from increased cash available for investment
and an increase in the amounts due from the State for construction
projects. Liabilities also increased by $53 million to $555 million, or
10.6%, resulting from increases in Other Postemployment Health-
care Benefits Payable, Bonds Payable (for a new parking garage), and
an increase in self-insurance liabilities. As a result, the University's
net assets increased by $194.1 million, or 10.2%, reaching a year-end
balance of $2.1 billion.

The University's operating revenues totaled $1.1 billion for the 2007-
08 fiscal year, representing a 3.2% increase over the 2006-07 fiscal
year. Major components of operating revenues are contracts and


grants and student tuition and fees. Contract and grant revenue in-
creased by $16 million or 2.3% and student tuition and fees, net of
scholarship allowances, increased 9.5%.

Net nonoperating revenues and expenses in the 2007-08 fiscal year
decreased 5.6% primarily because State Appropriations declined by
5.7%, and Investment Income declined by $14.5 million primarily
due to $10.1 million in fair market value adjustments and lower in-
terest rates.

Operating expenses totaled $1.8 billion for the 2007-08 fiscal year,
representing an increase of 1.8% over the 2006-07 fiscal year. The
largest category contributing to this increase was employee compen-
sation and benefits.

The University had significant construction activity during the year.
Construction projects completed include: (1) NIMET Nanoscale
Research Facility (capitalizable costs of $30.8 million); (2) Pugh Hall
(capitalizable costs of $15.2 million); (3) Indian River Research and
Education Center Biological and Agricultural Research Building (capi-
talizable costs of $3.8 million); and (4) Phillips Center for the Perform-
ing Arts Expansion (capitalizable costs of $2.3 million). Construction
continues on several major projects including four that when finished
will be capitalized at over $174 million: (1) Southwest Parking Garage
Complex; (2) Biomedical Science Building; (3) George Steinbrenner
Band Building; and (4) Pathogens Research Facility.


A Component Unit ofthe State of Florida 17






I:,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 Univer-
sity in achieving excellence by providing supplemental resources from
private gifts, bequests and valuable education support services.

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

* Shands Hospital and Others This includes Shands Teaching Hos-
pital and Clinics, Inc., a not-for-profit corporation that is contractu-
ally 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, 4 and 22 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, 2008, is State
appropriations for operations ($662.5 million).

Recurring nonoperating expenses consist primarily of interest expense
on bonds and revenue certificates payable, totaling $6.1 million for
the fiscal year ended June 30, 2008.


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. Net Assets,
the difference between total assets and total liabilities, 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:


Consed St t of Ast (i m


2008 2007


Assets:


Current Assets
Capital Assets, Net
Other Noncurrent Assets
Total Assets

Liabilities:
Current Liabilities
Noncurrent Liabilities
Total Liabilities

Net Assets:
Invested in Capital Assets,


$ 1,125.3
1,406.6
118.5
2,650.4

193.8
361.2
555.0


$ 940.2
1,339.1
124.0
2,403.3

163.6
338.4
502.0


Net of Related Debt 1,300.7 1,226.5
Restricted 714.6 598.0
Unrestricted 80.1 76.8*

Total Net Assets $ 2,095.4 $ 1,901.3
SNetAssets in 2007 are restated to reflect the restricted net assets of the self-
insurance programs. See Note 2



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 University's activity for the 2007-08 and 2006-07 fiscal years is
summarized on the next page.


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 2007-08 and 2006-07
fiscal years. Student Tuition and Fees and Sales and Services of Edu-
cational Departments have been restated for the 2006-07 fiscal year
to compare accurately with the 2007-08 fiscal year. For additional
information see Note 2 to the Financial Statements.


18 UniversityofFlorida






2007-08 Annuale:inancial Report


Condens~m~edr.Statempentolf Reveues, ExpensesI~
and Chngs in Ne Ases(n gilos


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


2007-08
$ 1,076.8
(1,844.5)

(767.7)

786.3


18.6


175.5


194.1

1,901.3

$ 2,095.4


i|,IS Es (P


Natural Classifications


2006-07
$ 1,043.5
(1,811.2)

(767.7)

833.1


65.4


154.1


219.5

1,681.8

$ 1,901.3


ISR.evne ( milli


2007-08

Grants and Contracts $ 711.2
Student Tuition and Fees, Net of
Scholarship Allowances 192.7
Sales and Services of Auxiliary Enterprises 135.0
Sales and Services of Educational Departments 36.4
Other 1.5

Total Operating Revenues $ 1,076.8


2006-07

$ 695.2

176.0
128.9
41.3
2.1

$ 1,043.5


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 operating expenses in the functional or natural
classifications. 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 classifica-
tions in the notes to the financial statements.

The following summarizes the operating expenses for each method of
classification for the 2007-08 and 2006-07 fiscal years:


Compensation and Employee Benefits $
Services and Supplies
Depreciation
Scholarships, Fellowships and


2007-08

1,215.9
344.3
110.7


2006-07

$ 1,179.2
357.6
108.5


Waivers, Net* 82.3 74.2
Utilities and Communications 65.1 69.8
Self-Insured Claims and Expenses 26.2 21.9

Total Operating Expenses $ 1,844.5 $ 1,811.2

Functional Classifications 2007-08 2006-07

Instruction $ 554.5 $ 548.5
Research 458.5 460.6
Public Service 164.3 151.8
Academic Support 129.1 116.6
Auxiliary Operations 122.4 130.0
Institutional Support 114.1 106.6
Depreciation 110.7 108.5
Operation and Maintenance of Plant 100.6 104.6
Scholarships, Fellowships and
Waivers, Net* 59.4 53.5
Student Services 30.9 30.5

Total Operating Expenses $ 1,844.5 $ 1,811.2

Net of Scholarship Allowances of $118.2 million in the 2007-08 fiscal year and
$110.7 million in the 2006-07 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 2007-08 and
2006-07 fiscal years:



SS Revenues (Exenes (n


State Appropriations
Federal and State Student Financial Aid
Investment Income
Loss on Disposal of Capital Assets
Interest on Capital Asset-Related Debt
Other Nonoperating Expenses

Net Nonoperating Revenues (Expenses)


2007-08

$ 662.5
113.8
25.7
(4.4)
(6.1)
(5.2)

$ 786.3


2006-07

$ 702.3
106.2
40.2
(4.5)
(6.8)
(4.3)

$ 833.1


A Component Unit ofthe State of Florida 19






MD&A


OTHER REVENUES, EXPENSES, GAINS, OR
LOSSES

This category is mainly composed of capital appropriations and cap-
ital grants, contracts, donations, and student fees. The change in
Capital Appropriations is due to increased construction activity as
well as a change in the accounting for matching Courtelis funds from
Capital Grants, Contracts, Donations, and Student Fees to Capital
Appropriations. The 2006-07 fiscal year has been restated. The fol-
lowing summarizes the University's other revenues, expenses, gains,
or losses for the 2007-08 and 2006-07 fiscal years:


Olr......... R e EG iI I n ml


Capital Appropriations
Capital Grants, Contracts, Donations
and Student Fees

Total Other Revenues, Expenses,
Gains, or Losses


2007-08 2006-07

$ 152.5 $ 122.0
23.0 32.1

$ 175.5 $ 154.1


STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides information about the Univer-
sity's financial results by reporting the major sources and uses of cash
and cash equivalents. This statement will assist in evaluating the Uni-
versity'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 financ-
ing activities include activities of the capital funds and related long-term
debt. Cash flows from investing activities 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 ($662.5
million), net student tuition and fees ($192.9 million), grants and
contracts ($681.2 million), and sales and services of auxiliary enter-
prises ($121.6 million).

The following summarizes cash flows for the 2007-08 and 2006-07
fiscal years:


I s...s m. f In ml I


2007-08
Cash Provided (Used) by:
Operating Activities $ (675.3)
Noncapital Financing Activities 773.8
Capital and Related Financing Activities (73.2)
Investing Activities (25.2)

Net Change in Cash and
Cash Equivalents 0.1


Cash and Cash Equivalents,
Beginning of Year

Cash and Cash Equivalents,
End of Year


3.0

$ 3.1


2006-07

$ (627.9)
810.0
(57.2)
(122.5)

2.4

.6

$ 3.0


CAPITAL ASSETS, CAPITAL EXPENSES
AND COMMITMENTS, AND DEBT
ADMINISTRATION


CAPITAL ASSETS
At June 30, 2008, the University had $2.7 billion in capital assets, less
accumulated depreciation of $1.3 billion, for net capital assets of $1.4
billion. Depreciation charges for the current fiscal year totaled $110.7
million. The following table summarizes the University's capital assets,
net of accumulated depreciation, at June 30:



Cpal A Net (


2008

Land $ 10.9
Buildings 955.5
Infrastructure and Other Improvements 30.9
Furniture and Equipment 242.0
Library Resources 63.1
Property Under Capital Lease and
Lease Improvements 7.2
Computer Software 8.1
Other Capital Assets 4.8
Construction in Progress 84.1


2007

$ 10.9
899.2
32.6
243.1
57.7

7.4
13.7
1.4
73.1


Total Capital Assets (Non-Depreciable
and Depreciable, Net) $ 1,406.6 $ 1,339.1

Additional information about the Universitys capital assets is presented in Note 9 to
the financial statements.


20 UniversityofFlorida






2007-08 Annuale:inancial Report


CAPITAL EXPENSES AND COMMITMENTS
Major capital expenses through June 30, 2008, were incurred on the
following continuing projects: Biomedical Science Building ($34.9
million); Pathogens Research Facility ($5.8 million); Communicore
Renovations Phase 2 ($5.9 million); and the George Steinbrenner
Band Building ($8.3 million). The University's major capital com-
mitments at June 30, 2008, are below.

Additional information about the University's capital commitments
is presented in Note 18 to the financial statements.


Mao .6. C t (n mi


Total Commitment
Completed to Date
Balance Committed


Amount
$ 325.4
84.1

$ 241.3


DEBT ADMINISTRATION

At June 30, 2008, the University had $134.2 million in outstand-
ing bonds and revenue certificates, capital leases, and installment
purchase agreements, representing an increase of $12.9 million, or
10.6%, from the prior fiscal year. The following table summarizes
the outstanding capital asset related debt by type of debt at June 30:


Capta A* .R .flat Dt (in i


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


2008

$ 126.6
3.6
4.0

$ 134.2


ECONOMIC FACTORS
THAT WILLAFFECT THE FUTURE

The State and national economic downturn continues to impact the
University. State Appropriations (recurring and non-recurring) de-
clined by $39.8 million to $662.5 million in 2007-08. The 2008-09
appropriations have declined further to $608.5 million. To partially
offset these reductions, the Florida Statutes provide for tuition in-
creases effective July 1, 2008. Increases in student fees will also help
mitigate the decline. The University continues to look for ways to
conserve resources and cut costs as well as to encourage entrepreneur-
ial efforts in both departments and auxiliaries. Our component units
have also continued their level of support in the face of the current
economic environment. These actions will empower the University
to continue its course in research and education.


REQUESTS FOR INFORMATION

Questions concerning information provided in the MD&A, and
financial statements and notes thereto, or requests for additional fi-
nancial information should be addressed to Michael V. McKee, As-
sistant Vice-President and University Controller, P.O. Box 113200,
Gainesville, Florida 32611.


2007

$ 112.6
3.7
5.0

$ 121.3


Additional information about the Universitys capital asset related debt is presented in
Note 13 to the financial statements


A Component Unit of the State of Florida 21









Fianca S atem*eInts



STTEEN OF NE ASET aso5.n 0,20


ASSETS
Current Assets:
Cash and Cash Equivalents (Note 3)
Investments (Note 4)
Accounts Receivable, Net (Note 5)
Loans and Notes Receivable, Net (Note 5)
Due From State (Note 6)
Due from Component Units/University (Note 7)
Inventories (Note 8)
Other Current Assets


Total Current Assets


Noncurrent Assets:
Restricted Cash and Cash Equivalents (Note 3)
Restricted Investments (Note 4)
Loans and Notes Receivable, Net (Note 5)
Depreciable Capital Assets, Net (Note 9)
Non-Depreciable Capital Assets (Note 9)
Other Noncurrent Assets

Total Noncurrent Assets


TOTAL ASSETS


LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Salaries and Wages Payable
Due to State
Due to Component Units/University (Note 7)
Deferred Revenue (Note 11)
Deposits Held in Custody
Long-Term Liabilities Current Portion: (Note 13)
Bonds and Revenue Certificates Payable
Installment Purchase Agreements Payable
Capital Leases Payable
Compensated Absences Payable
Liability for Self-Insured Claims
Other Current Liabilities (Note 12)


Total Current Liabilities


University of Florida
2008 2007


$ 441
761,248
121,553
3,864
216,818
15,046
5,688
618

1,125,276


2,624
76,049
38,691
1,307,972
98,612
1,217

1,525,165

$ 2,650,441



$ 63,291
30,910

8,962
34,877
5,765

6,937
1,651
94
8,222
14,772
18,277

193,758


Noncurrent Liabilities: (Note 13)
Bonds and Revenue Certificates Payable 119,618
Installment Purchase Agreements Payable 2,361
Capital Leases Payable 3,517
Compensated Absences Payable 145,299
Postemployment Healthcare Benefits Payable (Note 14) 10,155
Liability for Self-Insured Claims 80,339
Other Noncurrent Liabilities

Total Noncurrent Liabilities 361,289

TOTAL LIABILITIES 555,047


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


TOTAL NET ASSETS


TOTAL LIABILITIES AND NET ASSETS


1,300,680


53,727
236,716
3,245
420,959
80,067

2,095,394

$ 2,650,441


$ 1,461
682,948
93,184
3,612
138,755
13,972
5,765
509

940,206


1,544
86,326
35,189
1,254,631
84,458
968

1,463,116

$ 2,403,322



$ 61,542
27,505
164
12,817
29,800
3,353

6,755
1,587
89
9,132
10,849


163,593


105,881
3,459
3,612
148,252

77,195


338,399

501,992


1,226,499


52,228
163,443
3,010
379,364
76,786

1,901,330

$ 2,403,322


Component Units (FYE in 2008)
Direct-Support Health Science Shands Hospital
Organizations Center Affiliates and Others


$ 24,250
187,813
112,813
58

20,235
1,005
5,388

351,562


1,020
1,520,121
1,310
133,073
62,986
2,421

1,720,931

$ 2,072,493



$ 21,196
4,848

29,922
71,121
323

4,410


266

6,899

138,985


$ 51,303
10,093
59,260


17,224
143
2,218

140,241


1,500
24,036

24,398
1,973
13,087

64,994

$ 205,235



$ 12,455
15,341

10,039

41

887

86
8,194

2,784

49,827


122,405


16,490

73
28,113


38,825

165,166

304,151


44,676

94,503


$ 228,131
207,936
188,823


6,872

43,239

675,001



234,590

624,355
225,518
58,618

1,143,081

$ 1,818,082



$ 254,896
60

3,593
58


12,526

146


119

271,398


672,817

6,725

13,487

100,812

793,841

1,065,239


73,011


977,394


575,384
142,553

1,768,342

$ 2,072,493


1,500
99,320

110,732

$ 205,235


157,138


10,911
584,470

752,843

$ 1,818,082


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


22 UniversityofFlorida






2007-08 Annuale:inancial Report





arSTTME~INTOREVIENwUES,*uEXPENSES, AND C~I~uIHAGSINaETASSETS fr te iscl Year uu~EmrndeIJne 30I200
.5 mo ut exrse inthuans


2007-08
OPERATING REVENUES
Student Tuition and Fees $ 310,893
Scholarship Allowances (118,167)
StudentTuition and Fees, Net of Scholarship Allowances 192,726
Federal Grants and Contracts 310,515
State and Local Grants and Contracts 62,336
Nongovernmental Grants and Contracts 338,319
Sales and Services of Auxiliary Enterprises (Note 15) 135,044
Sales and Services of Educational Departments 36,393
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 742
Other Operating Revenues 735


Total Operating Revenues


1,076,810


2006-07

$ 286,764
(110,740)
176,024
301,237
54,060
339,881
128,908
41,349





717
1,337

1,043,513


Component Units (FYE in 2008)
Direct-Support Health Science Shands Hospital
Organizations Center Affiliates and Others


57,319

148,610
52,575

13,411

271,915


431,040
6,371


9,947

447,358


32
1,474,996
10,128
1,169

160,411

1,646,736


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


Total Operating Expenses (Note 16)


Operating Income (Loss)


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

Net Nonoperating Revenues (Expenses)

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

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

Total Other Revenues, Expenses, Gains or Losses


Increase (Decrease) in Net Assets

Net Assets, Beginning of Year


Net Assets, End of Year


194,064


1,901,330

$ 2,095,394


219,555


1,681,775

$ 1,901,330


77,052


1,691,290

$ 1,768,342


(4,833)


115,565

$ 110,732


(40,507)


793,350

$ 752,843


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


A Component Unit of the State of Florida 23


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


1,215,901
344,313
65,108
82,275
110,740
26,176


1,844,513

(767,703)


662,574
113,796
25,691
(4,402)
(6,125)
(5,239)

786,295


18,592


152,474
22,998


175,472


1,811,222

(767,709)


702,289
106,187
40,238
(4,536)
(6,842)
(4,255)

833,081


65,372


122,015
32,168


154,183


269 132

276,415

(4,500)





21,288

(4,499)
(4,246)

12,543


8,043



61,222
7,787

69,009


408.322

413,115

34,243





4,997
(65)
(221)
(107,731)

(103,020)


(68,777)


63,944

63,944


73,641

1.496.934

1,570,575

76,161





(19,945)


(62,571)

(82,516)


(6,355)



35
(34,187)

(34,152)


UIII oIty u I rluiiua









Fiacal S atementsge I I



STTEEN OF CAS FLW fo5. erEde ue3,20


CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and Fees, Net
Grants and Contracts
Sales and Services of Auxiliary Enterprises
Sales and Services of Educational Departments
Repayment of Loans Issued to Students
Interest on Loans Receivable
Other Operating Receipts
Payments to Employees
Payments to Suppliers for Goods and Services
Payments to Students 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 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
Proceeds from Capital Debt
Capital Appropriations
Capital Grants, Contracts, Donations and Student Fees
Proceeds from Sales of Capital Assets
Other Receipts for Capital Projects
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 in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Cash and Cash Equivalents, End of Year
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED BY OPERATING ACTIVITIES
Operating Loss
Adjustments to Reconcile Operating Loss to Net
Cash Used by Operating Activities:
Depreciation Expense
Change 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
Postemployment Healthcare Benefits Payable
Compensated Absences Payable
Liability for Self-Insured Claims
NET CASH USED BY OPERATING ACTIVITIES
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Unrealized losses from investing activities recognized during the 2007-08 fiscal year
Proceeds from University of Florida Parking Facility Revenue Bonds,
Series 2007A, retained by the Department of Education in escrow
The accompanying notes are an integral part of these financial statements.


University of Florida
2007-08 2006-07
$ 192,902 $ 168,367
681,184 702,907
121,568 126,240
49,442 49,740
2,337 7,264
727 719
741 651
(1,206,204) (1,159,651)
(410,511) (431,171)
(82,275) (74,259)
(6,092) (8,597)
(19,109) (10,098)
(675,290) (627,888)


662,574
113,796
178,398
(178,439)
2,777
450
(5,800)
773,756

1,030
91,657
28,536
151
141
(179,442)
(9,190)
(6,125)
(73,242)

2,004,964
(2,064,784)
34,656
(25,164)
60

3,005
$ 3,065


$ (767,703)

110,740
(30,905)
(1,278)
77
(108)
(1,059)
3,405
(1,097)
(858)
137
10,155
(3,863)
7,067
$ (675,290)


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)
(57,185)

3,135,870
(3,298,541)
40,132
(122,539)
2,434
571

$ 3,005


$ (767,709)

108,469
14,349
(13,768)
(151)
136
(3,778)
2,097
717
2,480

17,485
11,785
$ (627,888)


10,073,534
19,633,934


24 UniversityofFlorida







































OINi


For the Fiscal Cnlar Ended Junie 30, 2008


SSUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

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

A. Reporting Entity
The University of Florida is a separate public instrumentality that is
part of the State university system of public universities, which is under
the general direction and control of the Florida Board of Governors.
The University is directly governed by a Board of Trustees (Trustees)
consisting of thirteen members. The Governor appoints six citizen
members and the Florida 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 Trust-
ees. The Trustees are responsible for setting policies for the University,


which provide governance in accordance with State law and Board of
Governors regulations. The Board of Governors, or the Trustees, if
designated by the Board of Governors, select the University President.
The University President serves as the executive officer and the corpo-
rate secretary of the Trustees, and is responsible 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) Codifica-
tion of Governmental Accounting and Financial Reporting Standards,
Sections 2100 and 2600. These criteria were used to evaluate potential
component units for which the primary government is financially ac-
countable and other organizations for which the nature and significance
of their relationship with the primary government are such that exclu-
sion 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 Com-
prehensive Annual Financial Report by discrete presentation.


A Component Unit of the State of Florida 25









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), are included within the Univer-
sity's reporting entity as a blended component unit. The Program
was created by the Florida 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 Univer-
sity of Florida, the Program's and the HEIC's sole purpose is to assist
in providing liability protection for the University and its affiliated
individuals and entities, and are therefore reported as if they are part
of the University. See Note 20 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 fi-
nancial statements is conducted by independent certified public ac-
countants. 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 22.


D. Direct-Support Organizations
The University's direct-support organizations, as provided for in Sec-
tion 1004.28, Florida Statutes, and Board of Governors Regulation 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 resources from private gifts and
bequests, and valuable education support services. The Statute autho-
rizes these organizations to receive, hold, invest and administer prop-
erty 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 in-
come derived from or related to the development and commercializa-
tion of intellectual properties, which include inventions, discoveries,
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 Flor-
ida 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 Flori-
da Southwest Florida Research and Education Center.

Citrus Research and Education Foundation, Inc., expedites citrus
production, propagates new plant materials, collects and analyzes en-
vironmental impact research data, and provides research and educa-
tion support to the University of Florida Citrus Research and Educa-
tion 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.

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 of Florida 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.


26 UniversityofFlorida


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^






2007-08 Annuale:inancial Report


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.
* University of Florida Jacksonville Physicians, Inc.
* Faculty Associates, Inc.
* Florida Health Professions Association, Inc.
* University of Florida College of Nursing Faculty Practice
Association, Inc.
* University of Florida College of Pharmacy Faculty Practice
Association, Inc.
* Florida Veterinary Medicine Faculty Association, Inc.
* University of Florida Jacksonville Healthcare, Inc.
* Faculty Clinic, Inc.
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 autho-
rized to regulate fees generated from faculty practice and maintain
Faculty Practice Plans for the orderly collection and distribution of
fees. These organizations provide significant support for the clinical
instruction function of the JHMHC.

University of Florida Jacksonville Healthcare, Inc., a Health Services
Support Organization, as provided for in Board of Governors Regu-
lation 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 during
the term of the contractual agreement. The contractual agreement
provides for a 12-month grace period for any event of default, other
than the bankruptcy of Shands. In addition, the contractual agree-
ment limits the right of the State Board of Education to terminate
the contractual agreement solely to the circumstance in which Shands
declares bankruptcy and, in such event, requires net revenues derived
from the operation of the hospital facilities to continue to be applied
to the payment of Shands' debts.

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

Baby Gator Child Care Center, Inc., became an auxiliary of the
University effective July 1, 2007.

University Village Apartments, Inc. (the Corporation), was estab-
lished in 1969, for the purpose of providing housing for low- and
moderate-income families, especially those affiliated with the Univer-
sity of Florida. Capital was contributed at inception by the University
of Florida Foundation, Inc., but no capital stock was issued because
the Corporation does not operate for the benefit of any special inter-
est. The Corporation provides housing under Section 221(d)(3) of
the National Housing Act. The facility consists of 28 two-story build-
ings and is regulated by the United States Department 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


A Component Unit of the State of Florida 27









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 allows
public universities various reporting options. The University of Flor-
ida has elected to report as an entity engaged in only business-type
activities. This election requires the adoption of the accrual basis of
accounting and entity-wide reporting including the following com-
ponents:

* 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
assets and liabilities are recognized in the accounts and reported in
the financial statements. Specifically, it relates to the timing of the
measurements made, regardless of the measurement focus applied.
The University's financial statements are presented using the eco-
nomic resources measurement focus and the accrual basis of account-
ing. 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
recognized when all applicable eligibility requirements, including
time requirements, are met.

The University's discretely presented component units use the accrual
basis of accounting whereby revenues are recognized when 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 ac-
counting 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 gener-
ally 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 appropriations, Federal and State student financial aid, invest-
ment income (net of unrealized gains or losses on investments) and
revenues for capital construction projects. Interest on capital 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 certain
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 between
the stated charge for goods and services provided by the University and
the amount that is actually paid by a student or a third party making
payment on behalf of the student. The University applied "The Alter-
nate Method" as prescribed in NACUBO Advisory Report 2000-05
to determine the tuition scholarship allowances reported in the State-
ment 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 Nonexpendable 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 property
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


28 UniversityofFlorida


Notes






2007608 Annuale:inancial Report


straight-line basis over the following estimated useful lives:

* Buildings 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, postemploy-
ment healthcare benefits 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 pre-
miums or discounts and deferred losses on refundings. The Universi-
ty 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 Other Noncurrent
Assets, and are amortized over the life of the bonds and revenue cer-
tificates 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.



I REPORTING CHANGES
During the 2007-08 fiscal year, University management determined
that, pursuant to governing provisions of law, the net assets of the
University of Florida Self-Insurance Program (the Program) and the
University of Florida Healthcare Education Insurance Company
(HEIC) are restricted and has reported them accordingly at June 30,
2008. Since the Statement of Net Assets presents comparative finan-
cial information, the Program's and HEIC's combined net assets at
June 30, 2007, of $54.1 million, previously reported as Unrestricted
Net Assets, have been restated as Other Restricted Net Assets.

University management also determined, during the 2007-08 fiscal year,
that certain self-funded university credit student fees, previously reported
as Sales and Services of Educational Departments, should have been re-
ported as Student Tuition and Fees. Since the Statement of Revenues,


Expenses, and Changes in Net Assets presents comparative financial in-
formation, these student fees, totaling $8.4 million in the 2006-07 fiscal
year and previously reported as Sales and Services of Educational Depart-
ments, have been restated as Student Tuition and Fees.

Additionally, the University reported the Courtelis State matching
monies as Capital Grants, Contracts and Donations in previous fiscal
years. During the 2007-08 fiscal year, University management deter-
mined that it was more appropriate to report these revenues as Capi-
tal Appropriations. Since the Statement of Revenues, Expenses, and
Changes in Net Assets presents comparative financial information,
the Courtelis State matching monies of $6.7 million in the 2006-07
fiscal year, previously reported as Capital Grants, Contracts and Do-
nations, have been restated as Capital Appropriations.

Loss on Disposal of Capital Assets of 4.5 million in the 2006-07 fiscal
year, previously included with reported Other Revenues, Expenses,
Gains, or Losses, was restated to be included with reported Nonoper-
ating Revenues (Expenses).



I 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 or
other restricted assets, are classified as restricted.



I INVESTMENTS
Section 1011.42(5), Florida Statutes, authorizes universities to in-
vest 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 investment pool, administered by
the State Board of Administration; interest-bearing time deposits and
savings accounts in qualified public depositories, as defined in Sec-
tion 280.02, Florida Statutes; direct obligations of the United States


A Component Unit of the State of Florida 29









Treasury; obligations of Federal agencies and instrumentalities; secu-
rities of, or interests in, certain open-end or closed-end management
type investment companies; Securities and Exchange Commission reg-
istered money market funds with the highest credit quality rating from
a nationally recognized rating agency; and other investments approved
by the University'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 restrict-
ed. Investments of the University and its component units at June 30,
2008, are reported at fair value and shown in Tables 1 and 2.


Tblea ivrsit In


Types of Investments

External Investments Pools:
State Treasury Special Purpose Investment Account
State Board of Administration Debt Service Accounts
United States Government and
Federally-Guaranteed Obligations
Repurchase Agreements
Bonds and Notes
Stocks
Certificates of Deposit
Money Market Funds
Investment Agreements
Equity Mutual Funds
Bond Mutual Funds

Total University Investments


Types of Investments

External Investments Pools:
State Treasury Special Purpose Investment Accounts
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


Fair Value

$ 650,305,821
190,643

1,008
28,248,532
2,814
3,112,263
750,000
330,634
47,156,427
38,797,208
68.401.634

$ 837,296,984


Fair Value


$ 103,076,682

1,019,716

59,642,415
8,431,660
83,704,746
936,519,037
5,425,324
93,272,576
27,974,729
216,031,034
457,470,138
180,271,397
11,749,519

$ 2,184,588,973


A. External Investment Pools

The University and its discretely presented component units (see
Note 1) reported investments at fair value totaling $650,305,821 and
$103,076,682, respectively, at June 30, 2008, in the State Treasury Spe-
cial Purpose Investment Account (SPIA) investment pool, representing


ownership of a share of the pool, not the underlying securities. The SPIA
carried a credit rating ofAA-fby Standard and Poor's and had an effective
duration of 3.31 years at June 30, 2008. The University relies on policies
developed by the State Treasury for managing interest rate risk or credit
risk for this investment pool.

At June 30, 2008, the University's discretely presented component
units reported investments at fair value totaling $1,019,716 in the Lo-
cal Government Surplus Funds Trust Fund Investment Pool (LGIP),
which is administered by State Board of Administration (SBA) pursu-
ant to Section 218.405, Florida Statutes. The University's investments
in the LGIP, which the SBA indicates is a Securities and Exchange
Commission Rule 2a7-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 LGIP carried a credit rat-
ing ofAAAm by Standard and Poor's and had a weighted-average days
to maturity (WAM) of 20.22 days as of June 30, 2008. A portfolio's
WAM reflects the average maturity in days, based on final maturity or
reset date, in the case of floating rate investments. WAM measures the
sensitivity of the LGIP to interest rate changes. The investments in the
LGIP are reported at fair value, which is amortized cost.


B. Florida State Board of Administration Debt Service Accounts
The University reported investments at fair value totaling $190,643 at
June 30, 2008, in the State Board of Administration Debt Service Ac-
counts. These investments are used to make debt service payments on
bonds issued by the State Board of Education for the benefit of the Uni-
versity. The University's investments consist of United States Treasury
securities, with maturity dates of six months or less. The University relies
on policies developed by the State Board of Administration 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 state-
ments 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 eq-
uity securities, money market funds, mutual funds and certificates of
deposit. For the University, practically all of the other investments
are those reported by the University of Florida Self-Insurance Pro-
gram combined with the University of Florida Healthcare Education
Insurance 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 Univer-
sity Athletic Association, Inc., Florida Clinical Practice Association,
Inc., and Shands Teaching Hospital and Clinics, Inc. The following
risks apply to the University's and its discretely presented component
units' investments other than external investment pools:


30 UniversityofFlorida


gI Ta Cm*ont Ui In


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^






2007-08 Annuale:inancial Report


Interest Rate Risk: Interest Rate Risk is the risk that changes in inter-
est 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 obligations as they
come due. Per the Statement of Investment Guidelines and Objectives
of the University of Florida Healthcare Education 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, 2008, 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, 2008, the
University and its component units (excluding those reporting un-
der FASB standards) had bonds and notes, money market funds and
bond mutual funds, with quality ratings by nationally recognized rat-
ing agencies (i.e., Moody's), as shown in Tables 5 and 6, respectively.


3g Univery b


Types of Investments

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

Total University


Fair Value


$ 1,008
2,814
68.401.634

S 68,405.456


* 4. gComponent UnitsE bt


Investment Maturities (in Years)
Less than 1 1-5 6-10 More than 10


$ $ 229 $ $ 779
578 1,559 -677
68.401.634

$ 578 S 68.403.422 $ $ 1.456





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


$ 3,744,818
8,431,660
21,456,358
16,346,182

$ 49,979,018


Less than 1


$
8,368,228
1,069,982
1,339,112

$ 10,777,322


1-5


$ 1,066,225
4,182
13,432,827
10,174,563

$ 24,677,797


6-10


$ 2,671,250
18,847
634,085
3,580,522

$ 6,904,704


I .T 5. v ey t It Qu l *


Types of Investments

Bonds and Notes
Money Market Funds
Bond Mutual Funds


Fair Value

$ 2,814
330,634
68,401,634

$ 68,735,082


Total University


AAA/Aaa

$ 2,343
293,074
16,997,808

$ 17,293,225


AA/Aa

$

16,704,607

$ 16,704,607


A/Ba

$ 424
2,885


$ 3,309


.g .e Componet 6s Debt It Q y R gs


Types of Investments

Bonds and Notes
Money Market Funds
Bond Mutual Funds

Total Component Units


Fair Value

$ 21,456,358
1,860,330
16,346,182

$ 39,662,870


AAA/Aaa

$ 17,922,932
1,073,782
6,339,512

$ 25,336,226


AA/Aa

$ 990,179

1,610,407

$ 2,600,586


A/Ba

$ 2,538,593
583,390
677,827

$ 3,799,810


A Component Unit of the State of Florida 31


More than 10


$ 7,343
40,403
6,319,464
1,251,985

$ 7,619,195


Less than A/Ba
or Not Rated

$ 47
34,675
34,699,219

$ 34,733,941


Less than A/Ba
or Not Rated

$ 4,654
203,158
7,718,436

$ 7,926,248


I








Custodial Credit Risk: Custodial credit risk is the risk that in the
event of the failure of the counterpart to a transaction, the Univer-
sity will not be able to recover the value of its investments or collat-
eral securities that are in the possession of an outside party. Exposure
to custodial credit 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 invest-
ments in a single issuer. The University has no formal policy on con-
centration of credit risk. The component units manage their concen-
tration of credit risk based on various investment policies, which may
be obtained separately from the component units.



I RECEIVABLES

A. Accounts Receivable
Accounts receivable represent amounts for grant and contract re-
imbursements 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. Ac-
counts receivable, net of an allowance for uncollectible accounts,
at June 30, 2008, are summarized in Table 7.



Table7. Acco t g


Description
Grants and Contracts
Sales and Services of Auxiliary Enterprises
Student Tuition and Fees
Sales and Services of Educational Departments
Interest
Accounts Receivable, Net


Amount
$ 94,556,687
19,772,446
2,646,256
2,154,746
2,422,533
$ 121,552,668


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 $9,901,651, which is 27% of total related accounts receivable.
Loans and notes receivable are reported net of an allowance of
$3,045,518, which is 7% of total related loans and notes receiv-
able. No allowance has been accrued for grants and contracts
receivable. University management considers these to be fully col-
lectible.



I DUE FROM STATE
This amount primarily consists of Public Education Capital Outlay,
Capital Improvement Fee Trust Fund, and other allocations due to
the University for construction of University facilities.

B DUE FROM AND TO COMPONENT UNITS/
UNIVERSITY

The University's financial statements are reported for the fiscal year
ended June 30, 2008. 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
other than June 30. Additionally, component units' due from and
due to amounts include receivables and payables between the vari-
ous component unit columns. Accordingly, amounts reported by
the University as due from and to component units on the State-
ment of Net Assets may not agree with amounts reported by the
component units as due from and to the University.



I INVENTORIES

Inventories have been categorized into the following two types:

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, teaching
materials, and office supply items, which are consumed in the teaching
and work process. These inventories are normally expensed when pur-
chased and therefore are not reported on the Statement of Net Assets.

Merchandise Inventories Those inventories maintained which are


32 UniversityofFlorida


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^









2007-08 Annual Financial Report

Tabl *0.6 Caia Ases7


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
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


Additions


$
110,527,680
3,217,272

$ 113,744,952


$ 99,312,058
684,493
54,591,831
15,785,827

18,444
1,296,536
662,024
172,351,213

42,893,619
2,340,710
48,183,554
9,984,489
245,375
42,294
6,742,433
307,828
110,740,302

$ 61,610,911


Reductions


$ 9
99,590,996

$ 99,590,996


Ending
Balance


$ 10,922,527
84,053,419
3,636,335

$ 98,612,281


$ 443,875 $ 1,609,542,058
76,822,652
35,198,058 616,055,519
810,484 266,684,236
-9,815,002
758,771
690,082 33,845,424
21,734 2,406,363
37,164,233 2,615,930,025


309,404

27,727,875
326,019

1,415
603,810
(73,689)
28,894,834

$ 8,269,399


654,048,685
45,876,434
374,054,995
203,629,692
2,636,698
318,674
25,701,449
1,691,345
1,307,957,972

$ 1,307,972,053


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



I CAPITAL ASSETS

Capital assets activity for the fiscal year ended June 30, 2008, is pre-
sented in Table 8.



E 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 28 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 value on these items and, accordingly, the
financial statements do not include these assets.

The Samuel P. Harn Museum of Art, which is also part of the Uni-
versity, maintains a collection of over 6,500 works of art. Donations


of artwork to the museum are recorded by the University of Florida
Foundation, Inc. (Foundation), and are included with reported "Per-
manent Collections" as further explained in Note 10 of the Founda-
tion's audited financial statements for the fiscal year ended June 30,
2008. Purchases of artwork by the museum are included with the
University's reported "Nondepreciable Capital Assets" as presented
in Table 8.



E 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, 2008, is summarized in Table 9.



Table. De f... Reven


Description

Grants and Contracts
Sales and Services of Auxiliary Enterprises
Other Operating Revenue

Total Deferred Revenue


Amount

$ 21,703,692
6,864,463
6,308,720

$ 34,876,875


A Component Unit of the State of Florida 33











E OTHER CURRENT LIABILITIES

The University maintained accounts with a local bank to process gen-
eral operating expenses and payroll transactions. Funds in excess of
current need, including float, were invested. As a result, the Univer-
sity's records showed a temporary cash overdraft for the amount of
outstanding checks not presented as of June 30, 2008. This did not,
however, represent an overdraft in the University's depository accounts.
This temporary overdraft is reported as Other Current Liabilities.



E LONG-TERM LIABILITIES

Long-term liabilities of the University at June 30, 2008, include
bonds and revenue certificates, installment purchase agreements,
capital leases, compensated absences, postemployment healthcare
benefits payable and liability for self-insured claims.

Long-term liability activity for the fiscal year ended June 30, 2008, is
presented in Table 10.


A. Bonds and Revenue Certificates Payable
Auxiliary revenue bonds were issued to construct parking garages
and student housing facilities. Auxiliary revenue bonds outstanding,
which include both term and serial bonds, are secured by a pledge of
parking fees and housing rental revenues.

State University System revenue bonds were issued to acquire and
construct various university facilities. These bonds, which include
both term and serial bonds, are secured and payable from capital im-
provement and building fees, which are remitted to the State Board
of Education, to be used to retire the bonds. The State Board of Edu-
cation and the State Board of Administration administer the princi-


pal and interest payments, investment of sinking fund resources, 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
service requirements of certain University Student Housing Revenue
Bonds, Series 2000. These defeated bonds are not reported as out-
standing debt on the University's Statement of Net Assets. Debt con-
sidered defeated at June 30, 2008 totaled $26,070,000.

On October 25, 2007, the University issued $20,770,000 in Univer-
sity of Florida Parking Facility Revenue Bonds, Series 2007A. Pro-
ceeds of $20,269,181, net of $500,819 in discount and other delivery
date expenses, will be used for construction of the Southwest Parking
Garage Complex.

A summary of the University's outstanding bonds and revenue certifi-
cates payable at June 30, 2008, appears in Table 11.

Annual requirements to amortize all bonded debt outstanding as of
June 30, 2008, appear in Table 12.


B. Installment Purchase Agreements Payable
The University has entered into several installment purchase agree-
ments for the purchase of equipment reported at $7,452,474. The
stated interest rates ranged from 2.49% to 12.42%. Future minimum
payments remaining under installment purchase agreements as of
June 30, 2008, 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 organiza-
tion (component unit) of the University. Under the terms of the agree-


I0. L r tis


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
Postemployment Healthcare Benefits Payable
Liability for Self-Insured Claims
Total Long-Term Liabilities


Beginning Ending Current
Balance Additions Reductions Balance Portion


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

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


$ 20,583,860
1,316,468

21,900,328

323,098,396
17,490,000
23,847,333
$ 386,336,057


$ 6,665,271
2,351,067
88,507
9,104,845

326,961,256
7,335,000
16,779,883
$ 360,180,984


$ 126,555,117
4,011,641
3,611,654
134,178,412

153,520,689
10,155,000
95,111,000
$ 392,965,101


34 UniversityofFlorida


$ 6,937,440
1,651,098
94,215
8,682,753

8,221,699
14,771,964
$ 31,676,416


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^











20l.g07.0 Anug Financ..l Report


Bond Type and Series

Auxiliary Revenue Bonds:
1959F Housing
1984 Housing
1998 Housing
2000 Housing
2005A Housing
1993 Parking Garage
1998 Parking Garage
2007A 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 State University System Revenue Bonds

Less: Unamortized Bonds Discounts

Plus: Unamortized Bond Premiums

Less: Unamortized Refunding Loss

Total Bonds and Revenue Certificates


Amount of
Original
Issue


$ 1,500,000
3,500,000
26,155,000
30,695,000
37,610,000
19,545,000
10,000,000
20,770,000
149,775,000


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







$ 202,096,217


Amount Outstanding
Principal Interest


$ 170,000
1,005,000
19,570,000
1,380,000
35,455,000
4,310,000
6,725,000
20,770,000
89,385,000


3,537,783
9,931,735
3,523,496
6,110,799
8,062,163
8,087,963
39,253,939

(827,404)

807,724

(2,064,142)

$ 126,555,117


$ 10,350
108,150
9,253,209
104,250
22,012,831
677,750
1,859,131
9,620,689
43,646,360


860,500
4,099,858
1,772,955
931,964
2,586,877
5,270,912
15,523,066







$ 59,169,426


. Sa 1. I B In I st S i


Fiscal Year
Ending June 30 Principal

2009 $ 6,937,420
2010 7,199,388
2011 7,542,263
2012 7,817,619
2013 8,104,684
2014-2018 33,700,252
2019-2023 30,521,747
2024-2028 21,886,211
2029-2030 4,929,355
Subtotal 128,638,939

Less: Unamortized Bond Discounts (827,404)
Plus: Unamortized Bond Premiums 807,724
Less: Unamortized Refunding Loss (2,064,142)

Total $126,555,117


Interest

$ 5,866,993
5,557,937
5,238,026
4,903,317
4,552,775
17,925,596
10,460,038
4,284,929
379,815
59,169,426





$ 59,169,426


Total

$ 12,804,413
12,757,325
12,780,289
12,720,936
12,657,459
51,625,848
40,981,785
26,171,140
5,309,170
187,808,365

(827,404)
807,724
(2,064,142)

$185,724,543


ment, the University agreed to lease from the Foundation a 607-space
parking garage (the garage) located near the Health Science Center
Administrative Offices for a period of thirty years beginning July 1,
1994. Lease payments of $100,000 annually are due each July 1. The
garage was simultaneously acquired by the Foundation from Shands
Teaching Hospital and Clinics, Inc. (Shands), also a component unit,
and financed by the Foundation through the issuance of a promissory
note secured by a non-recourse mortgage containing payment terms
similar to those in the lease agreement between the Foundation and the


.. 13 I .Ag.ll.n Pra


Fiscal Year
Ending June 30

2009
2010
2011
2012
2013


Principal Interest

$ 1,651,098 $ 134,743
1,346,001 70,601
789,949 26,736
203,349 4,980
21,244 318

$ 4,011,641 $ 237,378


Total

$ 1,785,841
1,416,602
816,685
208,329
21,562

$ 4,249,019


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, Accountingfor Leases. The initial obligation
was discounted at an imputed interest rate of 6.45% and was recorded
at $1,382,470. The asset, which is included in reported Property Un-
der Capital Lease and Lease Improvements, was recorded at cost to
Shands of $3,000,000.

On March 1, 2000, the University, acting for and on behalf of the
former Board of Regents, entered into a lease agreement with Shands.
Under the terms of the agreement, the University agreed to lease from
Shands an 800-space parking garage located near the Health Science
Center Administrative Offices for a period of thirty years beginning


A Component Unit of the State of Florida 35


Maturity
Date To


Interest
Rates
(Percent)


3.000%
3.000%
4.350 to 6.000%
5.000%
3.500 to 5.125%
5.000%
4.100 to 4.750%
3.400 to 4.375%



4.630 to 5.000%
4.400 to 5.000%
4.000 to 5.000%
5.000%
3.625 to 4.125%
4.000 to 5.000%









March 1, 2000. Annual lease payments of $227,167 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, Accountingfor Leases. The initial obligation was
discounted at an imputed interest rate of 6.45% and was recorded at
$2,981,939. The asset, which is included in reported Property Un-
der Capital Lease and Lease Improvements, 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.


Tl 14. Cpa l L e


Capital Leases

Shands Garage (607 spaces)
Shands Garage (800 spaces)

Total


Outstanding
Interest Original Balance At
Rate Balances June 30,2008

6.45% $ 1,382,470 $ 980,079
6.45% 2,981,939 2,631,575

$ 4,364,409 $ 3,611,654


Future minimum payments under the capital lease agreements as of
June 30, 2008, are presented in Table 15.


Table 15.6 6.pital Leases Pric


Fiscal Year
Ending June 30

2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
2029-2030

Total


Principal Interest

$ 94,215 $ 232,952
100,292 226,875
106,761 220,406
113,647 213,520
120,977 206,190
732,496 903,338
1,001,229 634,605
928,163 307,671
413,874 40,459

$ 3,611,654 $ 2,986,016


Total

$ 327,167
327,167
327,167
327,167
327,167
1,635,834
1,635,834
1,235,834
454,333

$ 6,597,670


D. Compensated Absences Payable
Employees earn the right to be compensated during absences for
annual leave (vacation) and sick leave earned pursuant to Board of
Governors 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 ac-
counting principles do not permit the recording of a receivable in an-


ticipation of future appropriations. At June 30, 2008, the estimated
liability for compensated absences, which includes the University's
share of the Florida Retirement System and FICA contributions, to-
taled $153,520,689. The current portion of the compensated absenc-
es 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.


POSTEMPLOYMENT
HEALTHCARE BENEFITS

Effective for the 2007-08 fiscal year, the University implemented Gov-
ernmental Accounting Standards Board Statement No. 45, Accounting
and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions (GASB 45), for certain postemployment healthcare ben-
efits administered by the State Group Health Insurance Program. The
requirements of this Statement are being implemented prospectively,
with the actuarially determined liability of $269,126,000 at the July 1,
2007, date of transition amortized over 30 years. Accordingly, for fi-
nancial reporting purposes, no liability is reported for the postemploy-
ment healthcare benefits liability at the date of transition.

Plan Description. Pursuant to the provisions of Section 112.0801,
Florida Statutes, all employees who retire from the University are eli-
gible to participate in the State Group Health Insurance Program, an
agent multiple-employer defined-benefit plan. The University subsi-
dizes the premium rates paid by retirees by allowing them to partici-
pate in the plan at reduced or blended group (implicitly subsidized)
premium rates for both active and retired employees. These rates
provide an implicit subsidy for retirees because, on an actuarial basis,
their current and future claims are expected to result in higher costs
to the plan, on average, than those of active employees. A stand-
alone report is not issued and the Plan information is not included in
the report of a public employee retirement system or another entity.
Retirees are required to enroll in the Federal Medicare program for
their primary coverage as soon as they are eligible.

Funding Policy. Benefit provisions are pursuant to provisions of
Section 112.0801, Florida Statutes, and benefits and contributions
can be amended by the Florida Legislature. The University has not
advance-funded or established a funding methodology for the annual
Other Postemployment Benefit (OPEB) costs or the net OPEB ob-
ligation. For the 2007-08 fiscal year, 1,615 retirees received postem-
ployment healthcare benefits. The University provided required con-
tributions of $7,335,000 toward the annual OPEB cost, comprised
of benefit payments made on behalf of retirees for claims expenses
(net of reinsurance), administrative expenses, and reinsurance premi-
ums. The net amount of retiree contributions totaled $10,559,000.


36 UniversityofFlorida


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^






2007-08 Annuale:inancial Report


Annual OPEB Cost and Net OPEB Obligation. The University's an-
nual OPEB cost (expense) is calculated based on the annual required
contribution (ARC), an amount actuarially determined in accordance
with the parameters of GASB 45. The ARC represents a level of funding
that if paid on an ongoing basis, is projected to cover normal cost each
year and amortize any unfunded actuarial liabilities over a period not to
exceed 30 years. Table 16 shows the University's annual OPEB cost for
the year, the amount actually contributed to the plan, and changes in the
University's net OPEB obligation.


l 1. A .OI' C, a e O.s Olbligae


Description
Normal Cost (Service Cost for One Year)
Amortization of Unfunded Actuarial Accrued Liability
Interest on Normal Cost and Amortization

Annual Required Contribution
Interest on Net OPEB Obligation
Adjustmentto Annual Required Contribution
Annual OPEB Cost (Expense)
Contribution Toward the OPEB Cost

Increase in Net OPEB Obligation
Net OPEB Obligation, Beginning of Year
Net OPEB Obligation, End of Year


Amount

$ 7,537,000
9,280,000
673,000
17,490,000


17,490,000
(7,335,000)
10,155,000

$ 10,155,000


The University's annual OPEB cost, the percentage of annual OPEB
cost contributed to the plan, and the net OPEB obligation as of June
30, 2008 (first year of implementation), are presented in Table 17.



^^^^^^nuWii~ g^^^^^^^^^^^^^


Fiscal
Year


Annual Percentage of
OPEB Cost Annual
OPEB Cost
Contributed


Beginning Balance, 7/1/07
2007-08 $ 17,490,000


Net OPEB
Obligation


41.9% $ 10,155,000


Funded Status and Funding Progress. As of July 1, 2007, the most
recent actuarial valuation date, the actuarial accrued liability for ben-
efits was $269,126,000, and the actuarial value of assets was $0, result-
ing in an unfunded actuarial accrued liability of $269,126,000. The
covered payroll (annual payroll of active participating employees) was
$788,731,602 for the 2007-08 fiscal year, and the ratio of the unfund-
ed actuarial accrued liability to the covered payroll was 34.1 percent.


Actuarial Methods and Assumptions. Actuarial valuations of an
ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment and
termination, mortality, and healthcare cost trends. Amounts deter-
mined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as ac-
tual results are compared with past expectations and new estimates are
made about the future. Projections of benefits for financial reporting
purposes are based on the substantive plan provisions, as understood
by the employer and participating members, and include the types of
benefits provided at the time of each valuation and the historical pat-
tern of sharing of benefit costs between the employer and participating
members. The actuarial methods and assumptions used include tech-
niques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.

The University's initial OPEB actuarial valuation as of July 1, 2007,
used the entry age cost actuarial method to estimate the unfunded ac-
tuarial liability as of June 30, 2008, and the estimated 2007-08 fiscal
year annual required contribution. This method was selected because
it is the same method used for the valuation of the Florida Retire-
ment System. Because the OPEB liability is currently unfunded, the
actuarial assumptions included a 4 percent rate of return on invested
assets, which is the University's expectation of investment returns un-
der its investment policy. The actuarial assumptions also included a
payroll growth rate of 4 percent per year. Initial healthcare cost trend
rates for employees not covered by Medicare of 9.6 percent, grading
to 5.5 percent in half percent steps after nine years and for employees
covered by Medicare of 9.1 percent grading to 5.5 percent in half
percent steps after eight years were used. The unfunded actuarial ac-
crued liability is being amortized over 30 years as a level percentage
of projected payroll on an open basis. The remaining amortization
period at June 30, 2008, was 29 years.


E 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
$101,973,069 for the fiscal year ended June 30, 2008.


A Component Unit of the State of Florida 37










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



Tag.e *. Fnia


Functional Classification

Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance of Plant
Scholarships, Fellowships and Waivers, Net
Auxiliary Operations
Depreciation

Total Operating Expenses


Amount
(in thousands)

$ 554,486
458,496
164,302
129,143
30,892
114,072
100,574
59,361
122,447
110,740

$ 1,844,513


classification. The operating expenses on the Statement of Revenues,
Expenses, and Changes in Net Assets are presented by natural clas-
sifications. Table 18 presents those same expenses in functional clas-
sifications as recommended by NACUBO.



E OPERATING LEASE COMMITMENTS

The University has long-term commitments for assets leased under oper-
ating 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. Out-
standing commitments resulting from these lease agreements are contin-
gent upon future appropriations and not considered material.



E CONSTRUCTION COMMITMENTS

The University's construction commitments at June 30, 2008, are
presented in Table 19.



E RETIREMENT PROGRAMS


A. Florida Retirement System
The Florida Retirement System (FRS) is primarily a State-admin-


I g. *Table 1 o c Cta a


Project Name

Communicore Renovations Phase 2
Gator Dining Racquet Club Facility Renovation
Proton Therapy Beam Facility
George Steinbrenner Band Building
Pathogens Research Facility
Graduate Studies Building (Hough Hall)
IFAS Statewide Repairs and Renovation
Nanoscale Research Facility Cleanroom Fit-Out
Law School Trial Center
Biomedical Science Building
Cellulosic Ethanol Plant
Student Health Service Facility
Student Housing Bathroom Renovations
Southwest Parking Garage
UF Dental Clinic Naples, Florida
UF- IFAS FAU Relocation
Veterinary Medicine Education and Clinical Research Center
Renovate Lecture Rooms in Turlington Hall
Refurbish Transformer Substation #6
Replace Boiler #4 at Chilled Water Plant #2
23KV Feeder Extension
Design and Construct Chiller Plant#10 (Building 1378)


Total Commitment

$ 8,661,560
1,072,172
1,003,805
9,284,302
52,939,715
1,500,000
11,356,488
2,460,000
5,671,111
92,400,000
20,000,000
7,692,717
2,000,000
20,270,403
8,000,000
6,642,461
34,889,097
1,200,000
1,355,532
1,400,000
1,277,465
8,157,075

299,233,903
26,133,089

$ 325,366,992


Subtotal
Projects Under $1,000,000

Total


Completed to Date

$ 5,882,515
436,358
771,438
8,338,928
5,849,989
542,479
3,976,753
3,990
357,246
34,880,336
161,289
143,847
1,800,063
643,945
2,518,240
1,577,949
1,349,074
213,934
443,196
52,592
34,418
667,669

70,646,248
13,407,171

$ 84,053,419


Balance Committed

$ 2,779,045
635,814
232,367
945,374
47,089,726
957,521
7,379,735
2,456,010
5,313,865
57,519,664
19,838,711
7,548,870
199,937
19,626,458
5,481,760
5,064,512
33,540,023
986,066
912,336
1,347,408
1,243,047
7,489,406

228,587,655
12,725,918

$ 241,313,573


38 UniversityofFlorida


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^






2007-08 Annuale:inancial Report


istered, 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 mem-
bers 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 retire-
ment date. The Plan provides retirement, disability, 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
benefit payments while continuing employment with an FRS em-
ployer. 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 2007-08 fiscal year are presented in Table 20.




Tg. 2 I a sS... .e Rate


Class or Plan


Percent of Gross Salary (A)


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


9.85%
13.12%
20.92%

10.91%


(A) Employer rates for each membership class include 1.11% for the postem-
ployment health insurance subsidy. Also, employer rates, other than for
DROP participants, include .05% for administrative costs of the Public
Employee Optional Retirement Program.
(B) Contribution rates are dependent upon retirement class and plan in
which reemployed.


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


lished by law on future payrolls of the University. The University's
contributions for the fiscal years ended June 30, 2006, June 30,
2007, and June 30, 2008, totaled $26,643,733, $33,877,529, and
$33,574,700, respectively, which were equal to the required contri-
butions for each fiscal year.

Section 121.4501, Florida Statutes, provides for a Public Employee Op-
tional Retirement Program (PEORP). The PEORP is a defined contri-
bution plan alternative available to all FRS members in lieu of the FRS
defined benefit plan. University employees already participating in the
State University System Optional Retirement Program or the DROP
are not eligible to participate in this program. Employer contributions
are defined by law, but the ultimate benefit depends 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 directed to individual member
accounts, and the individual members allocate contributions and ac-
count balances among various approved investment choices. There
were 1,351 University participants during the 2007-08 fiscal year. Re-
quired contributions made to the PEORP totaled $4,545,034.

Financial statements and other supplementary information of the
FRS are included in the State's Comprehensive Annual Financial Re-
port, 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.


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 pur-
chase of annuities at retirement. The participant may contribute, by
salary deduction, an amount not to exceed the percentage contrib-


A Component Unit of the State of Florida 39









uted by the University to the participant's annuity account.

There were 5,226 University participants during the 2007-08 fiscal
year. Required employer contributions made to the Program totaled
$44,191,624 and employee contributions totaled $20,565,885.

C. Institute of Food and Agricultural Sciences
Supplemental Retirement
In 1984, the Florida Legislature enacted the Institute of Food and Ag-
ricultural Sciences Supplemental Retirement Act to provide a supple-
ment to the monthly retirement benefit being paid under the Federal
Civil Service Retirement System to retirees of the Institute of Food and
Agricultural Sciences (IFAS) at the University of Florida. The supple-
ment is designated for IFAS cooperative extension employees employed
before July 1, 1983, who are not entitled to benefits from either a State-
supported retirement system or social security based on their service
with IFAS. It was intended to compensate these IFAS employees for
the difference between their Civil Service benefit and the benefits an
FRS member receives, which include a social security benefit. No ad-
ditional persons can become eligible for this supplement.

There were 67 University participants during the 2007-08 fiscal
year. Required employer contributions made to the program totaled
$989,183. Employees do not contribute to this program.

D. Other Retirement Programs
Some University employees participate in the Florida Teacher's Re-
tirement System and the U.S. Civil Service Retirement System. Three
employees were covered by the Florida Teacher's Retirement System
during the 2007-08 fiscal year. Employer contributions totaled
$39,967, and employee contributions totaled $22,008. Seventy-eight
employees were covered by the U.S. Civil Service Retirement Sys-
tem during the 2007-08 fiscal year. Employer contributions totaled
$435,306, and employee contributions totaled $427,633.



f RISK MANAGEMENT PROGRAMS

A. State Self-Insurance Programs
The University is exposed to various risks of loss related to torts; theft
of, damage to, and destruction of assets; errors and omissions; injuries
to employees; and natural disasters. 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, Federal Civil Rights, and
fleet automotive liability. During the 2007-08 fiscal year, the State
retained the first $2 million of losses for each occurrence with an an-
nual aggregate retention of $40 million for named wind and flood
losses and no aggregate retention for all other named perils. After the
annual aggregate retention, losses in excess of $2 million per occur-


rence were commercially insured up to $50 million for named wind
and flood losses. For perils other than named wind and flood, losses
in excess of $2 million per occurrence were commercially insured up
to $200 million per occurrence; and losses exceeding those amounts
were retained by the State. No excess insurance coverage is provided
for workers' compensation, general and automotive liability, Federal
Civil Rights and employment action coverage. All losses in these
categories are completely self-insured by the State through the State
Risk Management Trust Fund established pursuant to Chapter 284,
Florida Statutes. 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
coverage during the past three years.

Pursuant to Section 110.123, Florida Statutes, University employ-
ees may obtain healthcare services through participation in the State
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 in-
surance, 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. Addi-
tional information on the State's group health insurance plan, includ-
ing the actuarial report, is available from the Florida Department of
Management Services, Division of State Group Insurance.

B. University Self-Insurance Programs
The University of Florida Self-Insurance Program was reestab-
lished by the Florida 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 Universi-
ty of Florida JHMHC/Jacksonville Self-Insurance Program. The
Self-Insurance Program provides general and professional liability
protection for the University on behalf of the six health colleges of
the JHMHC, which also include the Student Health Service Aux-
iliary, the Veterinary Medicine Teaching Hospital, and the Uni-
versity of Florida Proton Therapy Institute. Hospital professional
liability protection, including patient general liability, is provided
to Shands Teaching Hospital and Clinics, Inc.; Shands Jackson-
ville Medical Center, Inc.; the Shands community hospitals in
Starke, Lake City and Live Oak; and other statutorily permitted
entities, which voluntarily participate in the Self-Insurance Pro-
gram. The University is protected for losses, which are subject to
Section 768.28, Florida Statutes, including 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 Program provides $2 million per-claim


40 UniversityofFlorida


Notes^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^






2007608 Annuale:inancial Report


protection for the participants which are not subject to the provi-
sions 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 of Vermont. 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 University of Florida Self-Insurance Program, at
limits of $4 million per-claim coverage for insured participants sub-
ject to Section 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 cover-
ages described above. The excess insurance is paid to claimants on a
first come-first serve basis.

Claims settlement and adjustment expenses are accrued as ex-
penses and liabilities of the University of Florida Self-Insurance
Program and the University of Florida Healthcare Education In-
surance Company, for the estimated settlement value of claims
that is reported as a "Liability for Self-Insured Claims." The es-
timated settlement value of claims was determined based on the
judgment and experience of management and the Self-Insurance
Program Council 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, 2008, was $95,111,000 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,
totals $852,759 for the Self-Insurance Programs at June 30, 2008.
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 2006-07 and 2007-08 fiscal years are presented in Table 21.



LITIGATION

The University is involved in several pending and threatened legal ac-
tions. 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 22, 23, and 24.



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 and 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 25.


I A L 2 gabiliy fr S f I


Claims Liabilities
Beginning of the Year
$ 76,259,478
88,043,550


Current Claims and
Changes in Estimates
$ 19,927,964
23,847,333


Claims Payments
$ (8,143,892)
(16,779,883)


A Component Unit of the State of Florida 41


Fiscal Year
2006-07
2007-08


Claims
Liabilities
End of Year
$ 88,043,550
95,111,000












Tabllg 22. Direct-Support Orgg niztions.
75 ut exrse in thuans


The University The University Florida
University of Florida The University of Florida Foundation
of Florida Research Athletic Gator Law Center Seed
Foundation, Inc. Foundation, Inc. Association, Inc. Boosters, Inc. Association, Inc. Producers, Inc.
6/30/2008 6/30/2008 6/30/2008 6/30/2008 6/30/2008 6/30/2008


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


$ $ $ 1,135
102,019 148,293 68,588
39,179 155,706
1,476,113 1,092 45,864


1,617,311 149,385 271,293



7,659 15,677 135
12,295 28,932 65,529
28,081 32,600 103,600


48,035 77,209 169,264



8,864 62,973
966,755
569,354 461
24,303 72,176 38,595


$ 1,569,276 $ 72,176 $ 102,029


$ 7,245
1,550
31
464


9,290



4,417
330
106


22


6,931




67



67


31
3,884


522


$
4,102
940



5,042



1,912
24


2,042
3,822
1,000


2,166


$ 4,437 $ 6,864 $ 3,106


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


Operating Income (Loss)


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


$ 107,566 $ 57,327 $ 50,879
(116,642) (55,893) (85,565)


(9,076)


(34,686)


21,258 (3,397) 1,350
61,207 -
(1,566) 924 (8,086)
(3,383) 49,255


Change in Net Assets


Net Assets, Beginning of Year


Net Assets, End of Year


1,500,836 73,215 94,196


$ 1,569,276 $ 72,176 $ 102,029


4,458


6,297


$ 4,437 $ 6,864


42 UniversityofFlorida


$ 45,599
(2,829)


$ 1,507
(1,079)


42,770


$ 1,787
(1,379)


408


1,156
15


(43,962)


68,440


(1,039)


(30)


2,636


$ 3,106






2007-08 Annuale:inancial Report


University
Southwest Citrus of Florida Treasure Coast University University
Florida Florida Research Research and Leadership and Agricultural of Florida of Florida Total
4-H Club and Education Education Education Research Alumni Investment Direct
Foundation, Inc. Foundation, Inc. Foundation, Inc. Foundation, Inc. Foundation, Inc. Association, Inc. Corporation Support
3/31/2008 6/30/2008 6/30/2008 12/31/2007 6/30/2008 6/30/2008 6/30/2008 Organizations


$ $ 27
47 939
114 28



161 994





27



__27


47 939


$ 161 $ 967


$ 32 $ 577
(64) (503)


(32) 74


(31) 85


192 882


$ 161 $ 967


$ 3,230 $ $ $ $ 20,235
1,522 456 970 331,327
2 -59 196,059
-- 779 1,524,872


4,752 458 1,808 2,072,493



122 -- 29,922
737 -934 109,063
779 165,166


859 1,713 304,151



2 -59 73,011
2,233 -- 977,394
-575,384
1,660 456 36 142,553


$ 3,893 $ 458 $ $ 95 $ 1,768,342


$ 2,850 $ 2 $ 2,107 $ $ 271,915
(2,711) (4) (5,716) (2,314) (276,415)


139 (2) (3,609) (2,314) (4,500)



431 18 -13 21,288
61,222
(8,745)
3,609 2,268 7,787


570 16 (33) 77,052


3,323 442 128 1,691,290


$ 3,893 $ 458 $ $ 95 $ 1,768,342



A Component Unit of the State of Florida 43


$ 3,039
1,491


538


5,068





188



188


2,480
1,747
653


$ 4,880


$ 1,682
(1,716)


(34)



216


13



195


4,685


$ 4,880











Ta g.le *3 Health*Science Center Affiliates
.5t exrse in thosads


Florida
Clinical
Practice
Association, Inc.
6/30/2008


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


Total Assets


University of
Florida
Jacksonville Faculty
Physicians, Inc. Associates, Inc.
6/30/2008 6/30/2008


$ 11,638 $ 3,073 $ 1,105
57,232 44,701 6,742
4,269 12,915
36,886 115


110,025 60,804 7,847



7,108
17,356 16,786 1,910
22,889 15,032


40,245 38,926 1,910


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


Total Liabilities


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


Total Net Assets


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


65,705 19,228 5,937


$ 69,780 $ 21,878 $ 5,937


$ 244,583 $ 161,072 $ 23,627
(199,290) (176,218) (12,767)


Operating Income (Loss)


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


3,444 991 102
(82,716) (6,290) (10,594)
33,041 15,232


Change in Net Assets


(5,213)


Net Assets, Beginning of Year


Net Assets, End of Year


70,718 27,091 5,569


$ 69,780 $ 21,878 $ 5,937


44 UniversityofFlorida


45,293


(15,146)


10,860






2007-08 Annuale:inancial Report


Florida
Health
Professions
Association, Inc.
6/30/2008




$ 125
4,194


26


4,345


University of Florida
College of Nursing
Faculty Practice
Association, Inc.
6/30/2008




$ 226
3,857
953



5,036


804 23
1,055


1,859 23



953


2,486 4,060


$ 2,486 $ 5,013





$ 9,491 $ 773
(2,175) (593)


7,316 180



77 148
(1,309)
(4,916)


1,168 328


1,318 4,685


$ 2,486 $ 5,013


University of Florida Florida
College of Pharmacy Veterinary Medicine
Faculty Practice Faculty
Association, Inc. Association, Inc.
6/30/2008 6/30/2008


915 $
164


1,079 3,687


University of
Florida
Jacksonville
Healthcare, Inc.
6/30/2008


256
4,405



4,661


820 2,076
68 198 2,216



68 1,018 4,292



4,405


1,011 2,669 (4,036)


$ 1,011 $ 2,669 $ 369





$ 46 $ 6,955 $ 409
(94) (736) (20,025)


(48) 6,219 (19,616)



49 58
(6,880) (7)
S- 19,623


1 (603)


1,010 3,272 369


$ 1,011 $ 2,669 $ 369


Faculty
Clinic, Inc.
6/30/2008


2,326
3,829
1,596


7,751



35
427
5,700


6,162



(2,171)
1,500
2,260


$ 1,589





$ 402
(1,217)


(815)



128
(221)
964


56


1,533


$ 1,589


Total
Health
Science
Center
Affiliates




$ 17,224
123,017
26,371
38,623


205,235



10,039
39,788
44,676


94,503



9,912
1,500
99,320


$ 110,732





$ 447,358
(413,115)


34,243



4,997
(108,017)
63,944


(4,833)


115,565


$ 110,732


A Component Unit of the State of Florida 45












f Tablle .6 *4 Shands Teaching Hospital..ndOthersI
.5a t exrse in thosads


Shands
Teaching
Hospital
and Clinics, Inc.
Condensed Statement of Net Assets 6/30/2008
Condensed Statement of Net Assets


Baby Gator University
Child Care Village
Center, Inc.(A) Apartments, Inc.
7/1/2007 6/30/2008


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


$ 6,824
668,036
849,193
292,506


1,816,559



3,593
267,357
793,437


1,064,387



156,979
324
10,911
583,958


$ 752,172


Total Liabilities


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


Total Net Assets


$ $ 48
93
680
__702


1,523


448
404


852


159



512


$ 671


$


$ 6,872
668,129
849,873
293,208


1,818,082



3,593
267,805
793,841


1,065,239



157,138
324
10,911
584,470


$ 752,843


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


Operating Income (Loss)


$ 1,645,406
(1,569,145)


76,261



(19,950)
35
(62,226)
(34,187)


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


$ 32
(26)


6


$ 1,298
(1,404)


(106)


$ 1,646,736
(1,570,575)


76,161



(19,945)
35
(62,571)
(34,187)


Change in Net Assets


Net Assets, Beginning of Year


792.239


Net Assets, End of Year $ 752,172

(A) Baby Gator Child Care Center, Inc., became an auxiliary of the University effective July 1, 2007.


322 789


$ $ 671


793,350


$ 752,843


46 UniversityofFlorida


Total
Shands
Teaching
Hospital
and Others


(40,067)


(40,507)







200708 Anuae:nacile




2.S *Se n I o i


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



$ 25,339,950
28,981,119
4,010,744

58,331,813


4,089,084
33,214,186

37,303,270


13,985,524
3,483,757
3,559,262

$ 21,028,543


Division
of Housing



$ 20,671,377
67,447,991
5,184,902

93,304,270


7,105,413
55,018,270

62,123,683


15,662,666
4,764,210
10,753,711

$ 31,180,587


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


$ 17,630,300
(1,651,658)
(12,386,344)

3,592,298


Operating Income


Nonoperating Revenues (Expenses):
Capital Grants, Contracts, Donations and Student Fees
Investment Income
Interest on Capital Asset-Related Debt
Other
Capital Assets Related Expenses
Transfers


597,591
(1,149,118)
(218,875)


(1,104,636)

(1,875,038)


Net Nonoperating Revenues (Expenses)


Change in Net Assets


1,717,260


$ 38,648,103
(3,424,797)
(26,966,830)

8,256,476


1,024,091
1,608,071
(2,848,598)
(110,381)
(136,981)
(142,690)

(606,488)


7,649,988


Net Assets Beginning of Year

Net Assets, End of Year


19,311,283

$ 21,028,543



$ 5,625,873
(1,582,083)
(3,629,199)
221,561


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

Net Increase in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

Cash and Cash Equivalents, End of Year


636,152


(634,478)

$ 1,674


23,530,599

$ 31,180,587




$ 12,735,964
(4,769,285)
(4,740,800)
785,193


4,011,072


16,148,438

$ 20,159,510


A Component Unit of the State of Florida 47











IA I NC L m A ID I A D M N S E E D h 3 .a Y e a E n e J ueg 3 0 0 0 .n u ie d)7


2007-08
Number of
Recipients

8,221
1,974
847
2,001
2,329
79
19,479


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

$ 23,043,607
2,144,626
2,411,687
1,642,292
6,709,810
1,097,404
178,439,466


34,930 $ 215,488,892


750
315
134
1,199



500
31,515
840
32,855


$ 686,172
603,263
411,851
1,701,286



582,516
85,911,597
1,413,570
87,907,683


34,054 $ 89,608,969


17,153
7,554
6,118
30,825



5,374


$ 40,550,601
12,430,570
13,764,208
66,745,379



11,924,838


Total Other Scholarships and Grants


Fee Waivers
Non-Resident Tuition Waivers
Other Waivers


Total Fee Waivers Administered


Total Financial Aid Administered


36,199 $ 78,670,217


11,132 $ 25,706,322


48 UniversityofFlorida


1,131
10,001


$ 5,010,453
20,695,869


$ 409,474,400











University of Florida Annual Financial Report 2007-08


University of Florida Board of Trustees
Carlos J. Alfonso
Tampa, FL

Frank Bova
University ofFlorida
Faculty Senate Chair

J. Courtney Cunningham
Pinecrest, FL

Roland Daniels
Gainesville, FL

W. A. "Mac" McGriffIII
Jacksonville, FL

Joelen Merkel
Ocean Ridge, FL

Dianna Fuller Morgan
Windermere, FL



Executive Officers
J. Bernard Machen
President

Jane Adams
Vice President for University Relations

Douglas J. Barrett
Senior Vice President for Health. I

Kyle Cavanaugh
Senior Vice President for Administration

Jimmy G. Cheek
Senior Vice Presidentfor Agriculture
and Natural Resources

Matt Fajack
Vice President and ChiefFinancial '

Joe Glover
Provost and Senior Vice Presidentfor Academic. I

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


Cynthia F. O'Connell
Tallahassee, FL

S. Daniel Ponce
Miami, FL

Earl Powell
Coral Gables, FL

Kevin Reilly
University ofFlorida
Student Body President

Steven M. Scott
Boca Raton, FL

Alfred C. Warrington IV
Freeport, TX


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
Senior Associate Controller for Operational Controls and -.
FinancialReporting and CostAnalysis

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























































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