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Group Title: University of Florida Annual Financial Report. 2000-2001.
Title: University of Florida Annual Financial Report
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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: 2009
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Bibliographic ID: UF00072278
Volume ID: VID00010
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Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Main
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Full Text















T It E U' N I V E W, I T Y 0 V F L 0 It 1 1) A


ANNUAL FINANCIAL REPORT


2 f) 0 Is n 9


























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S .. -." .' .r ".t"*- i .. 9 r r-r"%.. -... S-;".--- .'-"
Gathering of graduates, ca. 1959.


C'.e


TABLE of CONTENTS


President's M message ................................... .... ..................................... 2
University of Florida Overview ........................................................
Introduction from the Vice President and Chief Financial Officer......................14
Independent Auditor's Report on Financial Statements.....................................16
Management's Discussion and Analysis ................................................. 18
Basic Financial Statements
Statement of Net Assets ................. ....................................... 24
Statement of Revenues, Expenses, and Changes in Net Assets .....................25
Statement of Cash Flows............................. .... ................................ 26
Notes to Financial Statements ................................... ..................... 27
Other Required Supplementary Information
Schedule of Funding Progress Postemployment Healthcare Benefits Plan........50
Supplemental Information
Financial Aid Administered ................................. ........................... 51


























I throughout its history,

the University of Florida

has been one of the most powerful

economic engines in the State,

contributing billions of dollars annually

to the economy. More importantly

- it also contributes thousands of

productive, highly-educated young

people to the State's workforce and

that, no doubt, is the most powerful

engine of all.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 1
























J. Bernard Machen
President


9 was a year of continued economic challenges at the
University of Florida, but the year also brought a sense
of renewal and significant steps forward.
Like most other universities in the country, the University of Florida
was forced to make difficult choices during the year, a result of a third
consecutive year of State budget cuts. But we also saw progress across a
wide spectrum of University affairs. Our research funding climbed more
than two percent to $574 million; the academic credentials of our already
terrific incoming students continued to improve; and we achieved several
milestones, such as the launch of the world's largest telescope, a project to
which we had contributed for nearly a decade.
By October, when UF received its largest-ever grant $29.5 million for
an Institute on Aging-led study it was clear we had significant momentum
going into the new year.
All that said, the tough times highlighted our efforts in another key arena:
community and statewide economic development.
UF is a major economic engine by definition. We produce thousands of
highly educated professionals, employ 25,000 people statewide, and attract
billions in out-of-state dollars to Florida. But the University also promotes
new growth, development and industry in a variety of ways. This activity
gains added importance during an economic slowdown, when infusions of
University resources, dollars and brainpower are particularly welcome.
In 2009:
Campus growth continued as private sector growth slowed. We launched
construction on the latest addition to our Eastside Campus: an 82,000
square foot office building for 300 employees. Continued development
of this campus, first begun in 2004, is intended to spur growth and
investment in a part of town long in need of an infusion of resources.
The office building was only one of several major UF construction
projects in Gainesville. Along the Archer Road corridor, we either
completed or nearly finished the Biomedical Sciences Building, the
Emerging Pathogens Institute and the Shands at UF Cancer Hospital.
On campus, we proceeded with the Harn Asian Art Wing, Hough Hall,
the Southwest Recreational Center Expansion and Student Health Care
Facility.
When combined with the VA Medical Center's expansion, these projects
add up to more than $1 billion in new construction. That is a major
source of otherwise scarce jobs and services related to the construction
industry, and a boon to the local economy in general.


2 I UNIVERSITY OF FLORIDA








* We expanded our efforts to spur commercialization
of UF inventions. Building on the legacy of the
Sid Martin Biotechnology Development Institute
in Alachua, we launched a bid to create a second
technology incubator in downtown Gainesville.
The Federal Government provided an $8.2 million
grant to build the Innovation Hub, a 45,000 square
foot facility that will provide tech startups with
office space, laboratories and conference rooms.
We anticipate this new facility, online by 2011, will
enhance UF technology commercialization that has
already resulted in dozens of spinoffs and more than
1,000 jobs.
* UF's success in this area was spotlighted early
this spring, when President Obama singled out a
UF startup in a White House speech on energy
technology. He named Sinmat, a startup co-founded
by an engineering faculty member that produces
technologies to build microchips used in smart energy
systems. His point: Sinmat and similar companies
will help America become energy independent while
creating new jobs and industries.
* We received more encouraging news on a related
front later in the summer, when the National
Institutes of Health announced a $26 million grant
to speed the transition of UF's medical research to
medical cures. UF was the first university in Florida
to receive a Clinical Translational Science Award.
* We continued to pursue a statewide vision for a
vibrant technology economy. UF is among several
prominent institutions participating in Medical
City, the biotech hub under development in Lake
Nona near Orlando. Indeed, our participation in
the project we will house drug development and
biomedical research labs in a new building there
helped attract the California-based Burnham
Institute for Medical Research to Florida. In other
statewide efforts, we remained active participants in
the Florida High Technology Corridor, which works
to bolster the technology industry in a 23-county
region throughout Central and North Florida. And
our scientists continue to collaborate with scientists at
Scripps Florida in Jupiter.
* We furthered research and development aimed
at addressing Florida's most pressing problems.
Big research universities pursue a huge range of
research efforts on the national and international
scale. But we also recognize that our expertise and


capabilities should also be applied to challenges
at home. Within the past few years, UF has
created institutes aimed at addressing the danger
of emerging diseases in the Sunshine State, better
managing Florida's increasingly scarce water, and
contributing to statewide clean energy solutions.
All continued to make headway in 2009. In just one
example, researchers tied to UF's Florida Institute
for Sustainable Energy launched a pilot cellulosic
ethanol plant with a major company.
The dollar value of these activities can be difficult to
measure. But there is no question that they will help
Florida work toward a brighter future.
Author and thinker Richard Florida has said famously
that technology, talent and tolerance are the 21st century
building blocks for economic development. Universities
have them all, and the University of Florida is no
different.
But that by itself is not a recipe for success. We
need the unique strengths, talents and knowledge in
Gainesville and throughout the State to maximize our
potential.
As Florida has written, "The key to the future lies
in building stronger bridges between universities and
their surrounding communities. The old town-gown
boundaries must dissolve until it becomes impossible
to see where the university ends and the community
begins."




J. Bernard Machen
President


William R. Hough Hall: new home of The Hough Graduate
School of Business.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 3







9Wli 5ul


BILLION



































UF researchers inspect an avocado, ca. 1920.


According to a 2007 economic
impact study, every dollar invested
in UF by the State returned an
average of $8.80 to the economy -
an 880% return on investment. With
the State investing approximately
- $705 million in appropriations with
the University in 2008-09,
UF's total annual impact on
the State economy works
out to $6.2 billion.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 5


-OPTSrR























a



d~1~






















College of Engineering department heads and dean, 1959.


UF is responsible for nearly 75,000
jobs in the State of Florida. Altogether,
total direct employment at UF and
affiliated organizations is nearly 34,000
jobs. In addition to direct employment,
spending for University operations and
by employee households, students
and visitors generated just C-
under 41,000 more jobs ( i\.
through indirect and induced
employment impacts, giving
a total employment impact of
nearly 75,000 jobs.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 7


759000


























The Engineering Building.


UF consistently ranks among the top 10
universities in licensing, leading such notable
institutions as Johns Hopkins and Harvard
in number of new startup companies. In
addition to creating thousands of jobs in the
State, UF technology-based startups help
keep talented workers employed and in
residence, thus reducing the brain drain to
other states.


According to a recent Milken
Institute report, UF is one of the
top five universities in the nation
in transferring biotechnology
to the marketplace. Some 80
biotechnology companies have
emerged from University research
initiatives, and these companies
contribute an estimated half a
billion dollars annually to Florida's
economy alone.


UF researcher Nan Yang Su,
Sentricon developer.


UF also leads in
royalty licensing.
Significant products
include the glaucoma
drug Trusopt,
the sports drink
Gatorade, and the
Sentricon termite
elimination system
- the latter having
not only saved the
Statue of Liberty, but
thousands of homes
around the nation.


8 I UNIVERSITY OF FLORIDA


Top
































THE FOUNDATION


FOR THE GATOR NATION


MISSION
The mission of the University of Florida is to offer broad-based, inclusive public education;
leading-edge research; and service to the residents of Florida and the nation. The fusion of
these three endeavors stimulates a remarkable intellectual vitality and generates a synthesis
that represents the University's greatest strength.
Teaching is a fundamental purpose of this University at both the undergraduate and
graduate levels. Research and scholarship are integral to the education process and to the
expansion of our understanding of the natural world, the intellect and the senses. Service
reflects the University's obligation to share the benefits of its research and knowledge for the
public good.
These three interlocking elements span all academic disciplines and represent the
University's commitment to lead and serve the State of Florida and the nation. The
University of Florida aspires to advance the State, nation, and the international community
by strengthening the human condition and improving the quality of life.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 9


























University Auditorium, ca. 1930.


HISTORY FACULTY


As Florida's oldest university,
the rich history of the University
of Florida began in 1853, when the
State-funded East Florida Seminary
acquired the Kingsbury Academy in
Ocala. The institution relocated north
to Gainesville at the end of the Civil
War, and ultimately consolidated
with the State's land grant Florida
Agricultural College and was
renamed the University of Florida in
1906. In those days the University
was an all-male institution with only
102 students.
Until 1947 UF was one of only
three state universities, which
included the Florida State College
for Women (now Florida State
University) and Florida A&M.
Women attended the University as
early as 1916, and the student body
grew to 601 women and 8,177 men
when the legislature removed all
barriers for female enrollment in
1947.
Today, the University has grown to
become one of the largest universities
in the nation, boasting an enrollment
of almost 50,000 students.


The University faculty, which
numbers more than 4,000, now has
62 Eminent Scholar Chairs and more
than two dozen members have been
elected to the National Academies
of Science and/or Engineering,
the Institute of Medicine, or a
counterpart in another nation. There
have been many honored faculty,
past and present, that include
Pulitzer Prize winners in editorial
writing and poetry, a recognized
pioneer in aviation engineering, a
leading scholar on econometrics,
three winners of NASA's top award
for research, one of the four charter
members of the Solar Hall of Fame,
and a winner of the Smithsonian
Institution's award for conservation.
The University of Florida also
remains in the top 20 among all
public universities with eight
Fulbright Scholars.
From pharmacy and public
relations to pain mitigation and
materials engineering, the University
of Florida is a recognized leader
in a wide variety of specialties and
areas. University researchers and
scientists have made significant
developments and discoveries in
many fields, including astronomy,
microbiology, metallurgy and medical


10 I UNIVERSITY OF FLORIDA








technology. UF ranks 13th among
all universities in patents awarded.
The University has also been
awarded national scientific
centers that include the McKnight
Brain Institute for the study
of neurological disease, the
Engineering Research Center for
Particle Science, and the National
High Magnetic Field Laboratory in
Tallahassee.


STUDENTS
I hI. l 11 ll. i i ll IFla itdi -
,,i't% _n I n- il to ii li ji tll- ndin''-


quality of the University's entire
academic experience. Preliminary
fall 2009 enrollment figures indicate
an enrollment of nearly 50,000
students, more than 42,000 of whom
are from Florida. Every state in
the nation is represented in the UF
student body, and the University is
gaining an increasingly international
enrollment, with approximately 3,700
international students representing
more than 100 countries.
Seventy percent of enrolled

|1 % [_i al'-. I I., d I d i k [it,__n and.
4', 1"- r0 ,. [i iit a I l ,h_--i, n.> al d.h.-_, _',.
-I-, i I wrin,-. .\1 ii i-1,l inaI' k-26 ]1h. i Vil-r n


of University of Florida students
are minorities, with 7.9 percent of
the student population consisting
of African-American students, 11.5
percent Hispanic/Latino students,
and 6.9 percent Asian-American or
Pacific Islander students.
University of Florida students are
also given many opportunities to
participate in extracurricular activities.
There are more than 800 student
organizations on campus, and students
attend more than 2,000 campus
i Ii. 11 %i 'i -. &i'l II 1P 1 1%t l'.. t 11jii i 1

, 21 %'.' ,.J-I'i ,_I j i 1 I 1' ,.'. !'tl" .' h 11 ,- a !


ai


c4 ~


"iii


i. .. -..














College/School






iForest Resources ad : [r iCons tion
:I" 1 0 0 L.. 0i (run.[ (1111min- I : P l b nn- n ln.
EduCabui,
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

SUB-TOTAL


Minus Concurrent Degree


TOTAL


2008 2007 2006 2005 2004

*:'fl "': ' : 9 '






J ,'~4 ,4 JJ I ',14O J1,:J 1.912
7,696 7,118 6,832 6,635 6,402
1,254 1,264 1,247 1,230 1,147
215 222 213 186 161
1,970 2,135 2,098 2,028 1,838
33 52 27 39 27
131 148 -
2,957 2,987 3,041 2,973 2,985
1,340 1,422 1,489 1,363 1,273
14,315 14,364 14,582 14,496 14,015
867 850 830 851 800
142 122 103 217 177
1,160 1,111 1,040 926 920
689 656 620 640 574
1,841 1,913 1,923 1,873 1,595
119 121 120 120 119
1,803 1,881 1,728 1,605 1,552
507 520 509 519 512

52,173 52,335 51,571 50,567 48,828

61 64 51 55 63

52,112 52,271 51,520 50,512 48,765


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


Degree

B 1.1.-hIca


[l.:. [.:.r ,I P i,, ,II
Juri- UCcLur
Doctor of Medicine
Doctor of Dental Medicine
Doctor of Veterinary Medicine
Specialist in Education
Engineer


TOTAL


200809 2007-08 200607 2005-06 200405

/ : 7:./ : .:. : / JI?


424 4- 4-27
124 115 124 115 99
81 72 79 78 79
84 83 79 82 77
73 61* 69* 68* 79*
1 2 1* 0 2*

14,855 14,244 13,658 13,029 13,038


Source UF Office of Institutional Planning and Research
*As revised from what was reported in 2007-08 fiscal year










In-State Enrollment by County Fall 2008


RESEARCH


The University of Florida
is a world leader in research,
contributing significantly to
nearly every field of endeavor.
UF researchers have pioneered
new therapies and better
treatments in the fights against
aging and disease. They have
developed renewable energy sources
that offer great promise in reducing
our dependence upon fossil fuels.
They have engineered healthier
foods, more energy-efficient and
sustainable construction techniques
and better ways to protect the
environment. They work closely with
NASA on a wide variety of critical
scientific projects. Through years
of research, University of Florida
scientists, inventors, engineers
and researchers have developed
products and practices that have
been distributed and applied with an
international reach, improving the
lives of millions of people in Florida
and around the world. UF was
awarded $574 million in sponsored
research in 2008-2009
- more than all other Florida
universities combined.

In addition to NASA, the
University joins with other significant
entities and organizations, including
a partnership with Spain that
created the world's largest telescope
in the Canary Islands, and the
Burnham Institute to construct
a 50,000-square-foot facility in
Orlando dedicated to research in the
areas of diabetes, aging, genetics and
cancer.


SANTA HOLMES
ROSA 12 JACKSON
50
172 OKALOOSA WASHINGTNNASSAU
WASHINGTON GADSDEN JEFFERSON HAMILTON140
ESCAMBIA 514 WAON35 LEON 13 MADISON
532 31 CALHOUN L S 13
BY D704 21UVL
11 SUWANNEE BAKER 2,311
306 LIBERTY WAKULLA 69 COLUMBIA 30
5 11 TAYLOR 161 UNIONBRADCLAY
GULF FRANKLIN 24 LAFAYETTE 33 FORD 625 ST.JOHNS
5 2 GIL- 56
CHRIST ALACHUA PUTNAM
DIXIE 63 4,452 132
1i s


Total In-State Enrollment: 42,781


Source: Fall Final Student Data Course File
Prepared by the UF Office of Institutional Planning & Research


Research Awards by Sponsor for
2008-09 fiscal year (in millions)
















-S*
UK...
Corporate
$53.1

9%








State&i Lca
$86.0^^^^Q^^^^f^^


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

Total


CITRUS
221 LAKE
SUMTER 446
HERNANDO 44
154
PASCO
553


FLAGLER
143

VOLUSIA
936
SEMINOLE
1,453
ORANGE
2,788


OSCEOLA
HILLS- 326 BREVARD
POLK
PINELLAS BOROUGH 768 1,476
2,255 2,633
INDIAN RIVER
286
MANATEE HARDEE OKEECHOBEE
443 12 35 ST.LUCIE
HIGHLANDS 339
DESOTO 115
SARASOTA 30 MARTIN
785 407
CHARLOTTE GLADES
158 7
LEE HENDRY PALM BEACH
792 34 3,176


COLLIER
518


BROWARD
5.079


MIAMI-
MONROE DADE
127 4,156


$ 131.8
46.3
34.8
31.9
22.8
13.7
10.8
8.3
6.1
5.8
5.7
3.4
3.3
3.2
2.7
1.2
4.7

S 336.5


A COMPONENT UNIT OF THE STATE OF FLORIDA I 13


























Matthew M. Fajack
Vice President and
Chief Financial Officer


I m pleased to present the University of Florida Annual Financial
Report for the 2008-09 fiscal year. The University of Florida faced
difficult economic conditions in 2009. Although challenging, necessary
tactical and strategic decisions were implemented that continue to ensure the
University's financial health.

The University's operating revenues totaled $1.4 billion for the 2008-09 fiscal
year, which is an increase of $314.9 million or 29.2% over the 2007-08 fiscal
year. Major components of operating revenues are contracts and grants and
student tuition and fees. Nongovernmental grants and contracts revenue
increased by $234.8 million, which accounted for 74.6% of the increase,
largely as a result of the change in accounting for the Academic Enrichment
Fund (Faculty Practice Plans) of the Health Science Center. This change is
further explained in the Management's Discussion and Analysis. In addition,
other grants and contracts research revenues increased by $28.2 million
which accounted for 9.0% of the increase. Student tuition and fees, net of
scholarship allowances, increased $36.3 million which accounted for 11.5% of
the increase.

Operating expenses totaled $2.1 billion for the 2008-09 fiscal year,
representing an increase of 15.0% over the 2007-08 fiscal year. The expenses
associated with the change in accounting for the Academic Enrichment
Fund accounted for 47.0% of the total increase and are included in the
increase in compensation and employee benefits classification below. The
two classifications with the largest dollar increases in operating expenses
were compensation and employee benefits and scholarships, fellowships
and waivers which accounted for 87.1% and 5.9%, respectively, of the total
increase.

Net nonoperating revenues and expenses in the 2008-09 fiscal year decreased
7.9% primarily due to declining State appropriations and a decrease in the
fair value of investments. The University's assets totaled $2.8 billion at June
30, 2009, a 4% increase from the previous year. Net assets increased by $79
million or 3.8%, reaching ayear-end balance of $2.2 billion.


14 I UNIVERSITY OF FLORIDA















The University had significant construction activity during the year.
Construction projects completed include: (1) Biomedical Science Building
(capitalizable costs of $91.0 million), (2) George Steinbrenner Band Building
(capitalizable costs of $9.3 million), (3) Communicore Renovation (capitalizable
costs of $8.7 million), and (4) University of Florida Dental Clinic Naples
(capitalizable costs of $8.0 million). Construction continues on several major
projects including three that, when finished, will be capitalized at over $130.0
million: (1) Veterinary Medicine Education and Clinical Research Center, (2)
Pathogen Research Facility, and (3) Southwest Parking Garage Complex.

The University also drives economic development in the State of Florida
through commercialization of research discoveries. The University of Florida is
a recognized leader in creating technology based start-up companies. Last year,
14 companies were formed to commercialize the research discoveries coming
out of the laboratories. Three University of Florida start-up companies were
recently featured on the local ABC affiliate, WCJB TV20 news in a series called
"GatorMade."

The Office of the Vice President and Chief Financial Officer is responsible for
the budget, finance and accounting, and financial analysis for the University.
The placement of all financial information into one office allows for cost-tracking
measures and better strategic decisions identifying efficiencies. I look forward
to my responsibilities supporting the creation of new revenue sources as the
University of Florida progresses toward an entrepreneurial future.

I encourage you to read our financial report, and I welcome your interest
in the University of Florida, the State of Florida's oldest, largest and most
comprehensive university.








Matthew M. Fajack
Vice President and / f
Chief Financial Officer i i i i


A COMPONENT UNIT OF THE STATE OF FLORIDA I 15











AUDITOR GENERAL

STATE OF FLORIDA
G74 Claude Pepper Building
111 West Madison Street
DAVID W. MARTIN, CPA Tallahassee Florida 32399-1450 PHONE: 850-488-5534
AUDITOR GENERAL FAX: 850-488-6975



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


INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of the University of Florida, a component unit of the State of
Florida, and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2009,
which collectively comprise the University's basic financial statements as shown on pages 24 through 49. These
financial statements are the responsibility of University management. Our responsibility is to express opinions on
these financial statements based on our audit. We did not audit the financial statements of the aggregate discretely
presented component units, as described in note 1 to the financial statements, which represent 100 percent of the
transactions and account balances of the aggregate discretely presented component units' columns. Those financial
statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion on the
financial statements, insofar as it relates to the amounts included for the aggregate discretely presented component
units, is based on the reports of the other auditors. The prior year partial comparative information was derived from
the University's 2007-08 financial statements and, in our report dated January 26, 2009, we expressed an unqualified
opinion on the respective financial statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes i:. :i. iii _. on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit and the reports of the other auditors provide a
reasonable basis for our opinions.
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the University of Florida and of its aggregate
discretely presented component units as of June 30, 2009, and the respective changes in financial position and cash
flows thereof for the fiscal year then ended, in conformity with accounting principles generally accepted in the United
States of America.


16 I UNIVERSITY OF FLORIDA







Page 2


University management determined that the financial activity in the faculty practice plans' academic enrichment fund
should be reported as a restricted operating fund of the University, and the University changed its accounting for
Federal capital contributions on the Federal Perkins Loan Program. As more fully described in note 2 to the financial
statements, these accounting changes resulted in adjustments to beginning net assets and affect comparability with
prior fiscal year financial statements.

The financial statements include prior-year partial comparative information. Such information does not include all of
the information required to constitute a presentation in conformity with accounting principles generally accepted in
the United States of America. Accordingly, such information should be read in conjunction with the University's
financial statements for the fiscal year ended June 30, 2008, from which such partial information was derived.

In accordance with Government Auditing Standards, we have also issued our report dated January 26, 2010, on our
consideration of the University of Florida's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, rules, regulations, contracts, and grant agreements and other matters included under
the heading INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
GovernmentAuditing Standards and should be considered in assessing the results of our audit. That report is included as
a part of our separately issued audit report on the University.

The MANAGEMENT'S DISCUSSION AND ANALYSIS on pages 18 through 22, and OTHER REQUIRED
SUPPLEMENTAL INFORMATION on page 50, are not a required part of the basic financial statements, but are
supplementary information required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the University of Florida's basic financial statements. The introductory section, overview, and supplementary financial
aid information are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory and overview sections ,-', 2 through 15), as well as the supplementary financial aid
information 'i '*< 51) have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.

Respectfully submitted,





David W. Martin, CPA
January 26, 2010


A COMPONENT UNIT OF THE STATE OF FLORIDA I 17





MD&A


Management's Discussion and Analysis
From the Vice President and Chief Financial Officer


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 30,2009, and shouldbe read in conjunctionwith the financial
statements and notes thereto. This overview is required by
Governmental Accounting Standards Board (GASB) Statement
No. 35, Basic Financial Statementd and M/anagement5 D1icuadion
and Analysif -for Public College and UniverVities, 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 $2.8 billion at June 30, 2009.
This balance reflects a $105.3 million, or 4.0%, increase from
the 2007-08 fiscal year. Investments increased by $52.7 million
and net capital assets increased by $96.9 million. The amount
due from the State decreased because several large construction
projects have been completely funded. While assets grew,
liabilities also increased by $26.3 million to $581.3 million, or
4.7%, resulting from an increase in other non-current liabilities
representing the Federal Capital Contributions for the Federal
Perkins Loan Program. Other liabilities that increased include
postemployment healthcare benefits payable, bonds and revenue
18 I UNIVERSITY OF FLORIDA


certificates payable, and the liability for self-insured claims. As
a result, the University's net assets increased by $79 million, or
3.8%, reaching a year-end balance of $2.2 billion.
The University's operating revenues totaled $1.4 billion for
the 2008-09 fiscal year, representing a 29.2% increase over the
2007-08 fiscal year. Major components of operating revenues
are student tuition and fees and grants and contracts. Student
tuition and fees, net of scholarship allowances, increased $36.3
million or 18.8%. Nongovernmental grants and contracts
revenue increased by $234.8 million, or 69.4%, largely as a
result of the change in accounting for the Academic Enrichment
Fund (faculty practice plan money) of the Health Science Center
Affiliates. This fund was previously accounted for as an agency
fund, which reports no revenues and expenses. Beginning in
the 2008-09 fiscal year, the related activities are accounted for
in an operating fund, which reports revenues and expenses on
the University's Statement of Revenues, Expenses, and Changes
in Net Assets. The expenses of this fund are classified as public
service in the functional expense table below.
Operating expenses totaled $2.1 billion for the 2008-09 fiscal
year, representing an increase of 15.0% over the 2007-08 fiscal
year also as a result of including the expenses of the Academic
Enrichment Fund. The two largest classifications of operating
expenses that contributed to this increase were compensation and
employee benefits and scholarships, fellowships and waivers.






2008-09 ANNUAL FINANCIAL REPORT


Net nonoperating revenues and expenses inthe 2008-09 fiscalyear
decreased 7.9% primarily due to declining State appropriations
and a decrease in the fair value of investments.

The University had significant construction activity during the
year. Construction projects completed include: (1) Biomedical
Science Building (capitalizable costs of $91.0 million), (2) George
Steinbrenner Band Building (capitalizable costs of $9.3 million),
(3) Communicore Renovation (capitalizable costs of $8.7
million), and (4) University of Florida Dental Clinic Naples
(capitalizable costs of $8.0 million). Construction continues on
several major projects including three that, when finished, will
be capitalized at over $130.0 million: (1) Veterinary Medicine
Education and Clinical Research Center, (2) Pathogen Research
Facility, and (3) Southwest Parking Garage Complex.


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

Direct-Support Organizations These are separate, not-
for-profit corporations organized and operated exclusively
to assist the University in achieving excellence by providing
supplemental 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 These include Shands
Teaching Hospital and Clinics, Inc., a not-for-profit
corporation that is contractually 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, 10, 13 and 21 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. The principal component
of operating revenues is grants and contracts ($974.2 million).
Compensation and employee benefits ($1.5 billion) represent the


primary component of operating expenses. A significant portion
of the University's anticipated, recurring resources is considered
nonoperating as defined by GASB Statement No. 35. The
principal component of nonoperating revenues for the fiscal year
ended June 30, 2009, is State Appropriations ($621.0 million).
Recurring nonoperating expenses consist primarily of interest
expense on bonds and revenue certificates payable, totaling
$6.6 million for the fiscal year ended June 30, 2009.


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:



gones Steit og N t ( m l io


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


2009

$ 1,135.9
1,503.5
116.3
2,755.7

175.1
406.2
581.3


1,384.2
680.3
109.9

$ 2,174.4


2008

$ 1,125.3
1,406.6
118.5
2,650.4

193.8
361.2
555.0


1,300.7
714.6
80.1

$ 2,095.4


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 adjustment to beginning net
assets reflects the combination of the above-described accounting
change pertaining to the Academic Enrichment Fund (increase
of $8.7 million) and the recording of the liability for the Federal
capital contributions of the Federal Perkins Loan Program
(decrease of $20.1 million). The following summarizes the
University's activity for the 2008-09 and 2007-08 fiscal years:

A COMPONENT UNIT OF THE STATE OF FLORIDA I 19






MD&A


OPERATING EXPENSES


Operating Revenues
Operating Expenses


2008-09

$ 1,391.7
(2,121.4)


Operating Loss


200

$ 1,0
(1,8

(7

7


(729.7)


Net Nonoperating Revenues (Expenses) 723.9


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

Other Revenues, Expenses,
Gains, or Losses

Increase in Net Assets

Net Assets, Beginning of Year

Adjustment to Beginning Net Assets
(See Note 2)


Net Assets, Beginning of Year,
as Restated

Net Assets, End of Year


96.2

90.4

2,095.4


(11.4)


2,084.0

$ 2,174.4


1
1

1,9


Condesed tateent f Reenue Epens


94.1

01.3


1,901.3

$ 2,095.4


The following summarizes the operating expenses for each
method of classification for the 2008-09 and 2007-08 fiscal
years:



0peatig E e (n m


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.

Grants and contracts revenue increased primarily because
of the above-described accounting change pertaining to the
Academic Enrichment Fund, which resulted in the recognition
of nongovernmental grants and contracts revenue during the
2008-09 fiscal year. Net student tuition and fees increased by
18.8% primarily as a result of tuition increases to offset decreases
in State funding. The following summarizes the operating
revenues by source that were used to fund operating activities
during the 2008-09 and 2007-08 fiscal years:



Oert RI (i milos.)


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

Total Operating Revenues


2008-09 2007-08

$ 974.2 $ 711.2

229.0 192.7
140.2 135.0
47.2 36.4
1.1 1.5

$ 1,391.7 $ 1,076.8


Natural Classification

Compensation and Employee Benefits
Services and Supplies
Depreciation
Scholarships, Fellowships and Waivers
Utilities and Communications
Self-Insured Claims and Expenses

Total Operating Expenses


Functional Classification

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


2008-09

$ 1,456.9
352.4
120.5
98.5
71.5
21.6

$ 2,121.4


2008-09

$ 563.4
466.6
405.2
125.5
125.3
120.5
106.9
106.1
73.7
28.2


2007-08

$ 1,215.9
344.3
110.7
82.3
65.1
26.2

$ 1,844.5


2007-08

$ 554.5
458.5
164.3
122.4
129.1
110.7
114.1
100.6
59.4
30.9


Total Operating Expenses $ 2,121.4 $ 1,844.5

Net of Scholarship Allowances of $115.0 million in the 2008-09 fiscal year and $118.2
million in the 2007-08 fiscal year



NONOPERATING REVENUES AND
EXPENSES
Certain revenue sources that the University relies on to provide
funding for operations, including State appropriations, certain
gifts and grants, and investment income, are defined by GASB as
nonoperating. Nonoperating expenses include capital financing
costs and other costs related to capital assets. Investment
income was lower due to lower yields and the decrease in the
fair value of investments. The two combined produced a net
loss on investments. The following summarizes the University's


20 I UNIVERSITY OF FLORIDA


I


Expenses are categorized as operating or nonoperating. The
7-08 majority of the University's expenses are operating expenses
as defined by GASB Statement No. 35. GASB gives financial
176.8
445) reporting entities the choice of reporting operating expenses
in the functional or the natural classifications. The University
has chosen to report the operating expenses in their natural
86.3 classifications on the Statement of Revenues, Expenses,
and Changes in Net Assets and has displayed the functional
18.6 classifications in the notes to the financial statements. The public
service classification increased significantly in the 2008-09 fiscal
75.5 year as a result of the above-described change in accounting for
the Academic Enrichment Fund.






2008-09 ANNUAL FINANCIAL REPORT


nonoperating revenues and expenses for the 2008-09 and 2007-
08 fiscal years:


o Rev---- ----- (n mon


State Appropriations
Federal and State Student Financial Aid
Investment Income
Decrease in the Fair Value of Investments
Loss on Disposal of Capital Assets
Interest on Capital Asset-Related Debt
Other Nonoperating Revenues (Expenses)


2008-09

$ 621.0
124.0
14.8
(20.7)
(3.5)
(6.6)
(5.1)


2007-08

$ 662.5
113.8
35.8
(10.1)
(4.4)
(6.1)
(5.2)


Net Nonoperating Revenues (Expenses) $ 723.9 $ 786.3

Note: Investment income and the decrease in the fair value of investments,
previously reported and disclosed as combined in the 2007-08 fiscal year, have been
separated to facilitate comparison with the 2008-09 fiscal year



OTHER REVENUES, EXPENSES,
GAINS, OR LOSSES
This category is mainly composed of capital appropriations and
capital grants, contracts, donations, and student fees. During the
year, capital appropriations declined because the State decreased
funding; transfers from component units for construction also
declined because Courtelis matching funds were temporarily
suspended by the State. The following summarizes the
University's other revenues, expenses, gains, or losses for the
2008-09 and 2007-08 fiscal years:


Ote ------ ------ Sxess GanorLse


financing activities include those activities not covered in the
other sections.

Although major sources of funds came from State appropriations
($610.6 million), net student tuition and fees ($227.2 million),
grants and contracts ($985.1 million), and sales and services of
auxiliary enterprises ($135.9 million), the University continued
its efforts to cut costs in response to reductions in State funding,
which along with the lower yield on investments, resulted in
reductions to cash used for operating activities, reductions in
cash provided by noncapital financing activities, and an increase
in cash used by investing activities.

The following summarizes cash flows for the 2008-09 and 2007-
08 fiscal years:




gones St og Cs F w (i ml o


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

Net Change in Cash and
Cash Equivalents

Cash and Cash Equivalents,
Beginning of Year

Cash and Cash Equivalents,
End of Year


2008-09


$ (578.2)
717.4
(67.0)
(74.6)


3.1


$ 0.7


2007-08


$ (675.3)
773.8
(73.2)
(25.2)


3.0


$ 3.1


2008-09 2007-08

$ 83.7 $ 152.5


and Student Fees 12.5

Total Other Revenues, Expenses,
Gains, or Losses $ 96.2



STATEMENT OF CASH FLOWS
The Statement of Cash Flows provides informati
University's financial results by reporting the major
uses of cash and cash equivalents. This statement
evaluating the University's ability to generate net c
ability to meet its financial obligations as they com
need for external financing. Cash flows from opera
show the net cash used by operating activities of th
Cash flows from capital and related financing acti
activities of the capital funds and related long-tern
flows from investing activities show the net source
cash related to purchases and sales of investments
earned on those investments. Cash flows fror


CAPITAL ASSETS, CAPITAL EXPENSES
AND COMMITMENTS, AND DEBT
ADMINISTRATION


23.0
Capital Assets
$ 175.5
SAt June 30, 2009, the University had $2.9 billion in capital assets,

less accumulated depreciation of $1.4 billion, for net capital assets
of $1.5 billion. Depreciation charges for the current fiscal year
totaled $120.5 million. The table appearing on the next page
on about the summarizes the University's capital assets, net of accumulated
r sources and depreciation, at June 30:
will assist in
ash flows, its Capital Expenses and Commitments
e due, and its
Major capital expenses through June 30, 2009, were incurred
ting activities
Son the following continuing projects: (1) Pathogen Research
University. Facility ($37.0 million), (2) Southwest Parking Garage Complex
vities include
Sdebt. Cs ($17.2 million), and (3) Veterinary Medicine Education and
Clinical Research Center ($7.0 million). The University's major
:e and use of
capital commitments at June 30, 2009, are shown in the table on
s and income
the next page.
n noncapital


A COMPONENT UNIT OF THE STATE OF FLORIDA I 21


Capital Appropriations
Capital Grants, Contracts, Donations






MD&A


I Ca l e N


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

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


2009

$ 10.9
110.6
1,037.4
36.5
235.8
57.7
6.9
2.7
5.0


2008

$ 10.9
84.1
955.5
30.9
242.0
63.1
7.2
8.1
4.8


$ 1,503.5 $ 1,406.6


Additional information about the University's capital assets is presented in
Note 9 to the financial statements.




M aj or C i C o (i miion
Amount

Total Commitment $ 295.6
Completed to Date 110.6

Balance Committed $ 185.0

Additional information about the University's capital commitments is presented
in Note 17 to the financial statements.


ECONOMIC FACTORS THAT WILL
AFFECT THE FUTURE
The American Recovery and Reinvestment Act (ARRA) is having
a positive effect on both the State and the University. While
State appropriations have declined $68.8 million from the 2008-
09 fiscal year to the 2009-10 fiscal year, the non-recurring ARRA
funds will offset this reduction by $42.3 million. Additionally,
tuition and fees will increase by as much as 15.8%.

The University continues to look for ways to conserve resources
and cut costs as well as to encourage entrepreneurial efforts in
its departments and auxiliaries. Grants and contracts have
increased, notably including the prestigious $26 million NIH
Clinical and Translational Science Award. Our component units
have increased their level of support in the face of the current
economic environment. These actions provide the impetus for
continued progress 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
financial information should be addressed to Michael V McKee,
Assistant Vice President and University Controller, P. O. Box
113200, Gainesville, Florida 32611.


Debt Administration

At June 30, 2009, the University had $137.3 million in outstanding
bonds and revenue certificates, capital leases, and installment
purchase agreements, representing an increase of $3.1 million, or
2.3%, from the prior fiscal year. The following table summarizes
the outstanding capital asset-related debt at June 30:




ait -g Asse l I l io


Bonds and Revenue Certificates
Capital Leases
Installment Purchase Agreements


2009

$ 129.4
3.5
4.4


2008

$ 126.6
3.6
4.0


Total Capital Asset-Related Debt $ 137.3 $ 134.2
Additional information about the University's capital asset-related debt is presented in
Note 13 to the financial statements.


22 I UNIVERSITY OF FLORIDA













-4






BASIC FINANCIAL STATEMENTS

STATEMENT OF NET ASSEu 0 2009 t e in tua


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
Salaries and Wages Payable
Due to Component Units/University (Note 7)
Deferred Revenue (Note 11)
Deposits Held in Custody
Other Current Liabilities (Note 12)
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

Total Current Liabilities

Noncurrent Liabilities: (Note 13)
Bonds and Revenue Certificates Payable
Installment Purchase Agreements Payable
Capital Leases Payable
Compensated Absences Payable
Postemployment Healthcare Benefits Payable (Note 14)
Liability for Self-Insured Claims
Other Noncurrent Liabilities


Total Noncurrent Liabilities


TOTAL LIABILITIES


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


TOTAL NET ASSETS


University of Florida
2009 2008


$ 683
813,536
117,834
3,804
180,668
13,436
5,387
586

1,135,934


3
76,478
38,621
1,378,345
125,202
1,152

1,619,801

$ 2,755,735



$ 49,061
38,721
1,486
47,449
4,642
2,364

7,409
2,333
100
8,665
12,930

175,160


121,966
2,108
3,417
152,093
19,648
86,912
20.070

406,214

581,374


1,384,242


$ 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
18,277

6,937
1,651
94
8,222
14.772

193,758


119,618
2,361
3,517
145,299
10,155
80,339


361,289

555,047


1,300,680


Component Units (FYE in 2009)
Direct-Support Health Science Shands Hospital
Organizations Center Affiliates and Others


$ 15,142
173,418
92,318
338

13,883
892
6,206

302,197


583
1,279,806
545
154,928
65,698
2,354

1,503,914

$ 1,806,111



$ 15,606
9,856
27,573
73,021
423
6,619

6,690


190


139,978


115,715


4,139


31,444

151,298

291,276


89,459


$ 46,108 $ 213,445
2,649 224,359
64,611 168,468


6,372 8,218

3,132 42,727

122,872 657,217


1,500
31,238 81,537

24,436 533,939
3,350 371,243
11,665 39,965

72,189 1,026,684

$ 195,061 $ 1,683,901



$ 11,434 $ 237,460
1,451 150
6,913 4,000
62
34
2,859 121

914 20,990

42 833



23,647 263,616


15,576 608,023

31 7,580
5,358
4,637

230.736

20,965 850,976

44,612 1,114,592


12,278


267,351


1,008,690


33,416
186,203
3,081
457,539
109,880

2,174,361


TOTAL LIABILITIES AND NET ASSETS $ 2,755,735

The accompanying notes to financial statements are an integral part of this statement

24 I UNIVERSITY OF FLORIDA


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

2,095,394


123,207



251,110
42,369

1,514,835


$ 2,650,441 $ 1,806,111


1,500 8,195
136,671 293,532

150,449 569,309

$ 195,061 $ 1,683,901






2008-09 ANNUAL FINANCIAL REPORT


University of Florida
2008-09 2007-08


Component Units (FYE in 2009)
Direct-Support Health Science Shands Hospital
Organizations Center Affiliates and Others


OPERATING REVENUES
Student Tuition and Fees
Scholarship Allowances
Student Tuition and Fees, Net of Scholarship Allowances
Federal Grants and Contracts
State and Local Grants and Contracts
Nongovernmental Grants and Contracts
Sales and Services of Auxiliary Enterprises (Note 15)
Sales and Services of Educational Departments
Sales and Services of Component Units
Hospital Revenues
Gifts and Donations Component Units
Royalties and Licensing Fees Component Units
Interest on Loans and Notes Receivable
Other Operating Revenues


Total Operating Revenues


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)
Decrease in the Fair Value of Investments
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


$ 344,001
(115.014)
228,987
333,871
67,184
573,094
140,189
47,249




769
377

1,391,720


1,456,954
352,375
71,510
98,459
120,508
21,654


2,121,460

(729,740)


620,968
123,949
14,848
(20,732)
(3,487)
(6,578)
(5,061)

723,907


(5,833)


83,702
12,510


96,212

90,379


$ 310,893
(118,167)
192,726
310,515
62,336
338,319
135,044
36,393




742
735

1,076,810


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


1,844,513

(767,703)


662,574
113,796
35,765
(10,074)
(4,402)
(6,125)
(5,239)

786,295


18,592


152,474
22,998


175,472

194,064


$ $


72,434

136,545
54,488

8,172

271,639







7,656

320,478

328,134

(56,495)




(62,649)
(174,435)

(4,365)
(3,193)

(244,642)


(301,137)



46,388
1,242

47,630

(253,507)


450,145
7,939


1,596

459,680


171,234

176,928

282,752




1,069
(7)
(9)
(130)
(349,815)

(348,892)


(66,140)


69,203

69,203

3,063


Net Assets, Beginning of Year


Adjustmentto Beginning Net Assets (Note 2)

Adjusted Net Assets, Beginning of Year, as Restated


Net Assets, End of Year


(11,412)

2,083,982

$ 2,174,361


1,901,330


1,768,342


$ 2,095,394 $ 1,514,835


36,654

147,386

$ 150,449


The accompanying notes to financial statements are an integral part of this statement


A COMPONENT UNIT OF THE STATE OF FLORIDA I 25


1,569,740
6,845
1,231

145,716

1,723,532


74,275

1,529,361

1,603,636

119,896




9,109
(52,408)


(225,371)

(268,670)


(148,774)


2,095,394


1,901,330


(34,760)

(34,760)

(183,534)


1,768,342


110,732


752,843


752,843

$ 569,309






BASIC FINANCIAL STATEMENTS




University of Florida


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-Insured 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
Purchase or Construction of Capital Assets
Principal Paid on Capital Debt and Leases
Interest Paid on Capital Debt and Leases

Net Cash Used by Capital and Related Financing Activities

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

Net Cash Used by Investing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

Cash and Cash Equivalents, End of Year

RECONCILIATION OF 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
Salaries and Wages Payable
Due to State and Component Units
Deferred Revenue
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
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Unrealized losses from investing activities recognized during the 2008-09 fiscal year
Proceeds from State University System Revenue Bonds, Series 2008A,
retained by the Florida Department of Education in escrow
Acquisition of equipment under installment purchase agreements
The accompanying notes to financial statements are an integralpart of this statement
26 I UNIVERSITY OF FLORIDA


2008-09

$ 227,184
985,109
135,862
47,226
5,407
751
201
(1,432,413)
(426,902)
(98,459)
(5,276)
(16,923)

(578,233)


610,585
123,949
204,306
(204,344)
(11,951)
2,024
(7,137)

717,432


20,616
127,365
16,227
1,416

(217,842)
(8,236)
(6,578)

(67,032)


1,344,148
(1,433,703)
15,009

(74,546)

(2,379)

3,065

$ 686


(729,740)


120,508

3,590
1,757
301
32
(3,350)
7,810
670
(1,280)
7
9,493
7,238
4,731

$ (578,233)


2007-08

$ 192,902
681,184
121,568
49,442
2,337
727
741
(1,206,204)
(410,511)
(82,275)
(6,092)
(19,109)

(675,290)


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)


20,732

7,736
2,139





2008-09 ANNUAL FINANCIAL REPORT


Notes to Financial Statements
For the Fiscal Year Ended June 30, 2009


1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The significant accounting policies followed by the University
of Florida are described below to enhance the usefulness of the
financial statements.

A. Reporting Entity
The University of Florida is a separate public instrumentality
that is part of 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 Trustees. 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, selects
the University President. The University President serves as the
executive officer and the corporate 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
Codi/ication 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 accountable and other organizations
for which the nature and significance of their relationship with
the primary government are such that exclusion would cause
the primary government's financial statements to be misleading
or incomplete. Based on the application of these criteria, the
University of Florida is a component unit of the State of Florida,
and its financial balances and activities are reported in the
State's Comprehensive Annual Financial Report by discrete
presentation.

A COMPONENT UNIT OF THE STATE OF FLORIDA I 27





NOTES


B. Blended Component Unit
Based on the application of the criteria for determining component
units, the University of Florida Self-Insurance Program (the
Program), combined with the University of Florida Healthcare
Education Insurance Company (HEIC), are included within
the University'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 University of Florida, the Program's
and the HEIC's sole purpose is to assist in providing liability
protection for the University and its affiliated individuals and
entities, and are therefore reported as if they are part of the
University. See Note 19 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
University'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 Hospital and Others. An annual audit of each
organization's financial statements is conducted by independent
certified public accountants. The annual report is submitted
to the Auditor General and the University Board of Trustees.
Additional information on the University's discretely presented
component units, including copies of audit reports, is available
by contacting the Office of University Relations. Condensed
financial statements for the University's discretely presented
component units are shown in Note 21.

D. Direct-Support Organizations
The University's direct-support organizations, as provided for
in Section 1004.28, Florida Statutes, and Board of Governors'
Regulation 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 authorizes these organizations to receive, hold, invest
and administer property, and to make expenditures to or for the
benefit of the University. These organizations and their purposes
are explained as follows:

University of Florida Foundation, Inc., solicits, collects,
manages, and directs contributions to the various academic
departments and programs of the University, and assists the


University in fund raising, public relations, and maintenance of
alumni records.

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

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 Florida climate and soils in adequate quantities
and at reasonable prices.

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

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

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

University of Florida Leadership and Education Foundation,
Inc., was formed to further agriculture and natural resource
education 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 Institute 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
educational 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.


28 I UNIVERSITY OF FLORIDA





2008-09 ANNUAL FINANCIAL 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 provided for in Board of Governors' Regulation 9.017. The
Faculty Practice Plans provide educationally-oriented clinical
practice settings 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 authorized 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' Regulation 9.011, engages in strategic alliances
and partnerships with nonacademic entities, effecting managed
care contracting and provider 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 Hospital and Others
Shands Teaching Hospital and Clinics, Inc. (Shands), was
incorporated 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 Florida State
Board of Education, to provide for the use of hospital facilities


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

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

University Village Apartments, Inc. (the Corporation), was
established in 1969 for the purpose of providing housing for low-
and moderate-income families, especially those affiliated with the
University of Florida. Capital was contributed at inception by the
University of Florida Foundation, Inc., but no capital stock was
issued because the Corporation does not operate for the benefit
of any special interest. The Corporation provides housing under
Section 221(d)(3) of the National Housing Act. The facility
consists of 28 two-story buildings 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
principles generally accepted in the United States of America
applicable to public colleges and universities as prescribed by
the Governmental Accounting Standards Board (GASB). The
National Association of College and University Business Officers
(NACUBO) also provides the University with recommendations
prescribed in accordance with generally accepted accounting
principles promulgated by GASB and the Financial Accounting
Standards Board (FASB). GASB allows public universities
various reporting options. The University of Florida has elected
to report as an entity engaged in only business-type activities.
This election requires the adoption of the accrual basis of
accounting and entity-wide reporting including the following
components:

A COMPONENT UNIT OF THE STATE OF FLORIDA I 29





NOTES


* 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
4. Notes to Financial Statements


* Other Required Supplementary Information

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 economic resources measurement focus and the
accrual basis of accounting. Revenues, expenses, gains, losses,
assets, and liabilities resulting from exchange and exchange-
like transactions are recognized when the exchange takes place.
Revenues, expenses, gains, losses, assets, and liabilities resulting
from nonexchange 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 standards of accounting and financial reporting
and some, such as the University of Florida Foundation, Inc.,
and Shands Teaching Hospital and Clinics, Inc., follow FASB
standards of accounting and financial reporting for not-for-profit
organizations.

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

Interdepartmental sales between auxiliary service departments
and other institutional departments have been accounted for as
reductions of expenses and not revenues of those departments.

The University's principal operating activities consist of
instruction, research and public service. Operating revenues
and expenses generally include all fiscal transactions directly
related to these activities 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, investment income 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
distinguish 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 Alternate Method" as
prescribed in NACUBO Advisory Report 2000-05 to determine
the reported tuition scholarship allowances. 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 presentedusing the direct method
in compliance with GASB Statement No. 9, Reporting Casb Flows
of Proprietary and Nonexpendable Trust Fund, and Governmental
Entities That Use Proprietary Fund Accounting.


I. Capital Assets
University capital assets consist of land, construction in progress,
buildings, infrastructure and other improvements, furniture
and equipment, library resources, property under capital lease,
works of art and historical treasures, computer software, 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 and 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 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

Library Resources 10 years

Property Under Capital Lease 40 years

Computer Software 3 to 7 years


J. Noncurrent Liabilities
Noncurrent liabilities consist of principal amounts of bonds and
revenue certificates payable, installment purchase agreements
payable, and capital leases payable; compensated absences
payable; postemployment healthcare benefits payable; liability


30 I UNIVERSITY OF FLORIDA





2008-09 ANNUAL FINANCIAL REPORT


for self-insured claims; and other noncurrent liabilities that are
not scheduled to be paid within the next fiscal year. Bonds and
revenue certificates payable are reported net of unamortized
premiums or discounts and deferred losses on refundings. The
University amortizes bond premiums and discounts over the
life of the bonds and revenue certificates using the straight-line
method. Deferred losses on refundings are amortized over the
life of the old debt or new debt (whichever is shorter) using the
straight-line method. Issuance costs paid from the debt proceeds
are reported as other noncurrent assets, and are amortized over
the life of the bonds and revenue certificates using the straight-
line method.

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


2 ADJUSTMENTS TO BEGINNING
*NET ASSETS
Austments to be innin net assets are re onnrted in arrordanrce


Since the contribution received will be returned to the Federal
Government if the Program has excess cash or the University
ceases to participate in the Program, NACUBO recommends
accounting for the Federal capital contribution as a noncurrent
liability. This change decreased the net assets for loans.


3 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 accounts. University cash deposits are held in banks
qualified as public depositories under Florida law. All such
deposits are insured by Federal depository insurance, up to
specified limits, or collateralized with securities held in Florida's
multiple financial institution collateral pool required by Chapter
280, Florida Statutes. Cash and cash equivalents that are
externally restricted to make debt service payments, maintain
sinking or reserve funds, or to purchase or construct capital
assets are classified as restricted.


with FASB Statement No. 154. The
were made to beginning net assets repo
of Revenues, Expenses, and Changes in
changes in accounting methods:





Description
To Increase (Decrease) Beginning Net Assets
for Change in Accounting for the Faculty
Practice Plans
To Increase Beginning Net Assets for Payroll-
Related Liabilities Pertaining to the Above
Change Previously Recognized by the
University
To Decrease Beginning Net Assets for Change
in Accounting of the Federal Perkins
Loan Program


Total


During the 2008-09 fiscal year, manage
the financial activity in the Faculty Pr
Enrichment Fund (previously report
liability, due to component units) sho
restricted operating fund, which result
to the University's and the Health Sci
beginning net assets, as shown in Table 1
Additionally, the Financial Accounting ar
NACUBO provided a change in guida
the Federal capital contribution of the
Program (Program). Prior to the 2008-09
capital contribution was recorded as


following adjustments
)rted in the Statement INVESTMENTS
Net Assets and reflect Section 1011.42(5), Florida Statutes, authorizes universities
to invest funds with the State Treasury and State Board of
Administration, and requires that universities comply with the
iH- s statutory requirements governing investment of public funds
by local governments. Accordingly, universities are subject
Components to the requirements of Chapter 218, Part IV, Florida Statutes.
University Units Pursuant to Section 218.415(16), Florida Statutes, the University
is authorized to invest in the Local Government Surplus Funds
Trust Fund investment pool, administered by the State Board
$ 8,726,135 $ (8,726,135) of Administration; interest-bearing time deposits and savings
accounts in qualified public depositories, as defined in Section
280.02, Florida Statutes; direct obligations of the United States
45,380,529
Treasury; obligations of Federal agencies and instrumentalities;
securities of, or interests in, certain open-end or closed-end
(20,138,018) management type investment companies; Securities and
$(11,411,883) $ 36,654,394 Exchange Commission registered money market funds with the
highest credit quality rating from a nationally recognized rating
agency; and other investments approved by the University's
ement determined that Board of Trustees, as authorized by law. Investments set aside
ictice Plans Academic to make debt service payments, maintain sinking or reserve
I as an agency fund funds, or to purchase or construct capital assets are classified
uld be reported as a as restricted. Investments of the University and its component
ed in the adjustments units at June 30, 2009, are reported at fair value and shown in
ence Center Affiliates' Tables 2 and 3.


d~ Reporting Manual of
nce on accounting for
Federal Perkins Loan
fiscal year, the Federal
a restricted revenue.


A. External Investment Pools
The University and its discretely presented component units (see
Note 1) reported investments at fair value totaling $692,541,383
and $113,396,217, respectively, at June 30, 2009, in the

A COMPONENT UNIT OF THE STATE OF FLORIDA I 31






NOTES


I Tal 2. Unvrst Inetet


Types of Investments

External Investment Pool:
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


Tabl 3. Copnn Unit Invstmnt


Fair Value


$ 692,541,383
210,137

29,644,576
5,596,200
477,116
8,829,584
750,000
310,133
43,725,996
37,726,877
70.201.958

$ 890,013,960


State Treasury Special Purpose Investment Account (SPIA)
investment pool, representing ownership of a share of the pool,
not the underlying securities. The SPIA carried a credit rating
of A+f by Standard and Poor's and had an effective duration of
1.84 years at June 30, 2009. The University relies on policies
developed by the State Treasury for managing interest rate risk
and credit risk for this investment pool. Disclosures for the State
Treasury investment pool are included in the notes to financial
statements of the State's Comprehensive Annual Report.

At June 30, 2009, the University's discretely presented
component units reported investments at fair value totaling
$375,384 in the Local Government Surplus Funds Trust Fund
Investment Pool (LGIP), which is administered by State Board
of Administration (SBA) pursuant to Section 218.405, Florida
Statutes. The component units' 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
rating of AAAm by Standard and Poor's and had a weighted-
average days to maturity (WAM) of 46 days as of June 30,
2009. 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. State Board of Administration Debt
Service Accounts

The University reported investments at fair value totaling
$210,137 at June 30, 2009, in the SBA Debt Service Accounts.
These investments are used to make debt service payments on
bonds issued by the State Board of Education for the benefit of
the University. The University's investments consist of United
32 I UNIVERSITY OF FLORIDA


Types of Investments

External Investment 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

$ 113,396,217

375,384

57,716,073
398,722
81,998,104
723,144,863
6,364,324
69,225,445
10,581,435
210,277,562
322,091,312
197,303,835
133.000

$ 1,793,006,276


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


C. Other Investments

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

Interest Rate Risk: Interest rate risk is the risk that changes
in interest rates will adversely affect the fair value of an
investment. Pursuant to Section 218.415(16), Florida Statutes,
the University's investments in securities must provide sufficient
liquidity to pay 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






2008-09 ANNUAL FINANCIAL REPORT


I Tal .U ivriyDb I nvsmns Mauite I


Fair Value

$ 29,644,576
477,116
70,201,958

$ 100,323,650


Tal5 Smo n Unit Deb I nvsmet Mat


Types of Investments


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


Total Component Units


Fair Value


$ 4,675,039
398,722
30,858,916
6,358,188

$ 42,290,865


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

$ 6,059,264 $ 23,585,312 $ $
4,255 82,387 39,128 351,346
15,141 70,117,275 69,542

$ 6,078,660 $ 93,784,974 $ 108,670 $ 351,346





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


$ 1,372,535
398,722
316,748
1,239,462

$ 3,327,467


560,316 $ 2,742,188 $


24,066,076
4,995,068

$ 29,621,460


1,940,690
123,658

$ 4,806,536


4,535,402


$ 4,535,402


I Tal 6.U iesiyDb I nvsmns Qult Raig I


Types of Investments

Bonds and Notes
Money Market Funds
Bond Mutual Funds

Total University


Fair Value

$ 477,116
310,133
70,201,958

$ 70,989,207


Tal S. Copoen UntDb I nvsmet Qult Raig I


Types of Investments

Federal Agency Obligations
Bonds and Notes
Money Market Funds
Bond Mutual Funds

Total Component Units


Fair Value

$ 398,722
30,858,916
8,304,522
6,358,188

$ 45,920,348


standards) in debt securities and bond mutual funds, and their bonds and notes, money market funds and bond mutual funds,
future maturities at June 30, 2009, are shown in Tables 4 and 5, with quality ratings by nationally recognized rating agencies
respectively. (i.e., Moody's), as shown in Tables 6 and 7, respectively.


Credit Risk: Credit risk is the risk that an issuer or other
counterpart 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, 2009, the University and its component
units (excluding those reporting under FASB standards) had


Custodial Credit Risk: Custodial credit risk is the risk that in
the event of the failure of the counterpart to a transaction, the
University will not be able to recover the value of its investments
or collateral 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

A COMPONENT UNIT OF THE STATE OF FLORIDA I 33


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


Total University


AAA/Aaa

$ 28,314
222,299


$ 250,613


AA/Aa

$ 6,582

34,400,913

$ 34,407,495


A/Ba

$ 4,785

45,426

$ 50,211


Less than A/Ba
or Not Rated

$ 437,435
87,834
35,755,619

$ 36,280,888


AAA/Aaa

$
26,768,852
7,278,753


$ 34,047,605


AA/Aa

$ 398,722
1,043,170

1,212,537

$ 2,654,429


A/Ba

$
2,917,873
514,319
80,777

$ 3,512,969


Less than A/Ba
or Not Rated

$
129,021
511,450
5,064,874

$ 5,705,345


I





NOTES


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



5. RECEIVABLES

A. Accounts Receivable
Accounts receivable represent amounts for grant and contract
reimbursements 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. Accounts
receivable, net of an allowance for uncollectible accounts, reported
as of June 30, 2009, are summarized in Table 8.


Tbe.A-ount Rci


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
$ 84,950,896
24,432,204
4,455,271
1,764,732
2,231,184
$ 117,834,287


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
receivable, 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 $7,920,279, which is 19% of total related accounts
receivable. Loans and notes receivable are reported net of an
allowance of $3,014,135, which is 7% of total related loans and
notes receivable. No allowance has been accrued for grants and


contracts receivable. University management considers these to
be fully collectible.



6* DUE FROM STATE
This is the amount of Public Education Capital Outlay, Capital
Improvement Fee Trust Fund, and other allocations due from
the State for construction of University facilities.


7 DUE FROM AND TO COMPONENT
SUNITS/UNIVERSITY
The University's financial statements are reported for the fiscal
year ended June 30, 2009. 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 various component unit columns.
Accordingly, amounts reported by the University as due from
and to component units on the Statement of Net Assets may
not agree with amounts reported by the component units as due
from and to the University.



8* INVENTORIES
Inventories have been categorized into the following two types:
Departmental Inventories Those inventories maintained
by departments 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 expensedwhen purchased and therefore
are not reported on the Statement of Net Assets.
Merchandise Inventories Those inventories maintained
which are 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.



9. CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2009, is
presented in Table 9.


10 MUSEUM AND ART
*COLLECTIONS
The Florida Museum of Natural History, which is part of the
University, maintains a depository of biological, geological,
archaeological, and ethnographical materials. The museum's


34 I UNIVERSITY OF FLORIDA






2008-09 ANNUAL FINANCIAL REPORT


I 1 Tal 9. Caia Ast


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
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
Works of Art and Historical Treasures
Computer Software
Other Capital Assets

Total Accumulated Depreciation

Total Capital Assets, Depreciable, Net


Beginning
Balance


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

$ 98,612,281


$ 1,609,542,058
76,822,652
616,055,519
266,684,236
9,815,002
758,771
33,845,424
2,406,363

2,615,930,025


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


Additions


$
166,035,009
81,121

$ 166,116,130


$ 130,751,914
8,564,958
53,202,307
6,836,830

28,564
875,972
493,686

200,754,231


48,470,739
3,060,989
50,002,605
12,153,975
245,375
46,802
6,233,616
293,464

120,507,565

$ 80,246,666


Reductions


$ 72,080
139,454,453


$ 139,526,533


$ 1,215,025

36,536,049
474,992

5,000
508,607
319,142

39,058,815


834,340

27,161,221
474,992

5,000
394,576
314,808

29,184,937

$ 9,873,878


Ending
Balance


$ 10,850,447
110,633,975
3,717,456

$ 125,201,878


$ 1,739,078,947
85,387,610
632,721,777
273,046,074
9,815,002
782,335
34,212,789
2,580,907

2,777,625,441


701,685,084
48,937,423
396,896,379
215,308,675
2,882,073
360,476
31,540,489
1,670,001

1,399,280,600

$ 1,378,344,841


collections contain more than 28 million specimens, more than
half of which are catalogued, either individually or in lots.
While many of the collections 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
University, maintains a collection of approximately 7,000 works
of art. Donations of artwork to the museum are recorded by
the University of Florida Foundation, Inc. (Foundation),
and are included with reported "Permanent Collections" as
further explained in Note 12 of the Foundation's audited
financial statements for the fiscal year ended June 30,
2009. Purchases of artwork by the museum are included with
the University's reported "Non-depreciable Capital Assets"
as presented in Table 9.




11 *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, 2009, is summarized in Table 10.


I Tal 10 D----------------


Description

Grants and Contracts
Sales and Services of Auxiliary Enterprises
Capital Appropriations

Total Deferred Revenue


Amount

$ 20,630,415
6,761,924
20,057,173

$ 47,449,512


12 .OTHER CURRENT LIABILITIES
The University maintained accounts with a local bank to process
general operating expenses and payroll transactions. Funds
in excess of current need, including float, were invested. As
a result, the University's records showed a temporary cash
overdraft, reported as other current liabilities, for the amount
of outstanding checks not presented as of June 30, 2009. This
did not, however, represent an overdraft in the University's
depository accounts.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 35






NOTES


I Tal 11 L n -Tr Libiite I


Beginning Ending
Balance Additions Reductions Balance


Description

Capital Asset-Related Debt:


Bonds and Revenue Certificates
Installment Purchase Agreements
Capital Leases

Total Capital Asset-Related Debt


$ 126,555,117
4,011,641
3,611,654

134,178,412


Other Long-Term Liabilities:


Compensated Absences
Postemployment Healthcare Benefits Payable
Liability for Self-Insured Claims
Other Noncurrent Liabilities


153,520,689
10,155,000
95,111,000


$ 9,747,607
2,138,887

11,886,494


411,236,872
16,208,000
20,692,009
20.138.018


$ 6,927,586
1,709,878
94,215

8,731,679


403,999,203
6,715,000
15,960,945
68.348


$ 129,375,138
4,440,650
3,517,439

137,333,227


160,758,358
19,648,000
99,842,064
20.069.670


Current
Position


$ 7,408,632
2,333,065
100,292

9,841,989


8,665,508

12,930,093


$ 392,965,101 $ 480,161,393 $ 435,475,175 $ 437,651,319 $ 31,437,590


13. LONG-TERM LIABILITIES
Long-term liabilities of the University at June 30, 2009, consist of
bonds and revenue certificates, installment purchase agreements,
capital leases, compensated absences, postemployment healthcare
benefits, liability for self-insured claims, and other noncurrent
liabilities.

Long-term liability activity for the fiscal year ended June 30,
2009, is presented in Table 11.


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 are
secured and payable from capital improvement and building fees,
which are remitted to the State Board of Education to be used
to retire the bonds. The State Board of Education and the State
Board of Administration administer the principal 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 outstanding debt on the University's Statement of
Net Assets. Debt considered defeated at June 30, 2009, totaled
$26,070,000.

On January 14, 2009, the Florida Board of Governors, on behalf
of the University, issued $9,885,538 in State University System

36 I UNIVERSITY OF FLORIDA


Revenue Bonds, Series 2008A. The proceeds of $9,728,150, net
of $157,388 in discount and delivery date expenses, will be used
for capital improvements.

A summary of the University's bonds and revenue certificates
payable at June 30, 2009, appears in Table 12.

Annual requirements to amortize all bonded debt outstanding as
of June 30, 2009, appear in Table 13.


B. Installment Purchase Agreements Payable

The University has entered into several installment purchase
agreements for the purchase of equipment reported at $8,158,516.
The stated interest rates ranged from 1.62% to 12.42%. Future
minimum payments remaining under installment purchase
agreements and the present value of the minimum payments as
of June 30, 2009, appear in Table 14.


C. Capital Leases Payable

On June 8, 1994, the former Board of Regents, on behalf of
the University of Florida, entered into a lease agreement with
the University of Florida Foundation, Inc. (the Foundation), a
direct-support organization (component unit) of the University.
Under the terms of the agreement, the University agreed to
lease from the Foundation a 607-space parking garage (the
garage) located near the Health Science Center Administrative
Offices for a period of thirty years beginning July 1, 1994. Lease
payments of $100,000 annually are due each July 1. The garage
was simultaneously acquired by the Foundation from Shands
Teaching Hospital and Clinics, Inc. (Shands), also a component
unit, and financed by the Foundation through the issuance of a
promissory note secured by a non-recourse mortgage containing
payment terms similar to those in the lease agreement between
the Foundation and the University. Lease payments from the
University to the Foundation and from the Foundation to Shands


Total Long-Term Liabilities






2008-09 ANNUAL FINANCIAL REPORT


I TalI2 od n eeueCriiae aal


Amount of
Original
Bond Type and Series Issue


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

Total Auxiliary Revenue Bonds


State University System Revenue Bonds:
1997A Series
1998 Series
2001 Series
2003A Series
2005A Series
2006A Series
2008A Series

Total State University System Revenue Bonds

Less: Unamortized Bonds Discounts
Plus: Unamortized Bond Premiums
Less: Unamortized Refunding Losses

Total Bonds and Revenue Certificates


I Bonded Debt IutIt


$ 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
9,885,538

62,206,755





S 211.981.755


Amount Outstanding
Principal Interest


$ 115,000
850,000
18,625,000
705,000
34,945,000
3,680,000
6,240,000
20,065,000

85,225,000


3,219,832
9,457,505
3,391,433
4,929,720
7,613,474
7,864,534
9,790,802

46,267,300

(888,016)
677,299
(1,906,445)

$ 129,375,138


$ 2,625
78,000
8,308,192
35,250
20,308,756
478,000
1,564,970
8,808,137

39,583,930


686,915
3,631,179
1,611,004
626,424
2,273,392
4,886,973
8,993,816

22,709,703





$ 62,293,633


Interest
Rates
(Percent)


3.000%
3.000%
4.500 to 5.000%
5.000%
3.500 to 5.125%
5.000%
4.125to 4.750%
3.400 to 4.375%


4.750 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%
4.000 to 6.500%


Tablem 14.IntalmetPrcaseAgeemnt


Fiscal Year
Ending June 30

2010
2011
2012
2013
2014
2015-2019
2020-2024
2025-2029
2030-2033


Subtotal

Less: Unamortized Bond Discounts
Plus: Unamortized Bond Premiums
Less: Unamortized Refunding Losses

Total


$


Principal Interest

7,408,632 $ 6,129,827
7,762,216 5,799,759
8,049,105 5,454,400
8,348,527 5,091,706
7,425,453 4,710,667
35,124,948 18,841,799
29,410,048 11,052,354
22,756,944 4,636,470
5,206,427 576,651

131,492,300 62,293,633


(888,016)
677,299
(1,906,445)

$129,375,138


$62,293,633


Total

$ 13,538,459
13,561,975
13,503,505
13,440,233
12,136,120
53,966,747
40,462,402
27,393,414
5.783.078

193,785,933

(888,016)
677,299
(1,906,445)

$191,668,771


were based on an original construction cost of $3 million and no
interest. For reporting purposes, the lease is considered a capital
lease under Financial Accounting Standards Board (FASB)
Statement No. 13, Accounting for Leade. 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 under capital lease, was recorded at cost to Shands of
$3 million.


Fiscal Year
Ending June 30

2010
2011
2012
2013
2014


Principal

$ 2,333,065
1,264,370
523,321
231,839
88,055

$ 4,440,650


Interest

$ 144,480
47,799
15,771
4,980
644


Total

$ 2,477,545
1,312,169
539,092
236,819
88,699


$ 213,674 $ 4,654,324


On March 1, 2000, the University, acting for and on behalf of the
former Board of Regents, entered into a lease agreement with
Shands. Under the terms of the agreement, the University agreed
to lease from Shands an 800-space parking garage located near
the Health Science Center Administrative Offices for a period
of thirty years beginning March 1, 2000. 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 Leavde. 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 under capital
lease, was recorded at cost to Shands of $6,815,002. A summary
of pertinent information related to the two capital leases appears
in Table 15.
A COMPONENT UNIT OF THE STATE OF FLORIDA I 37


Maturity
Date To












Outstanding
Interest Original Balance At
Rate Balances June 30, 2009

6.45% $ 1,382,470 $ 943,294
6.45% 2,981,939 2,574,145

$ 4,364,409 $ 3,517,439


Future minimum payments under the capital lease agreements
and the present value of the minimum payments as of June 30,
2009, are presented in Table 16.


T.able 1. Capital L s P a ad I


Fiscal Year
Ending June 30

2010
2011
2012
2013
2014
2015-2019
2020-2024
2025-2029
2030


Principal

$ 100,292
106,761
113,647
120,977
128,780
779,742
1,065,809
888,029
213402


Interest

$ 226,875
220,406
213,520
206,190
198,387
856,092
570,025
247,804
13,764


Total

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


$ 3,517,439 $ 2,753,063 $ 6,270,502


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' Regulations, University Regulations and
bargaining agreements. Leave earned is accrued to the credit of
the employee and records are kept on each employee's unpaid
(unused) leave balance. The University reports a liability for
the accrued leave; however, State appropriations fund only
the portion of accrued leave that is used or paid in the current
fiscal year. Although the University expects the liability to be
funded primarily from future appropriations, generally accepted
accounting principles do not permit the recording of a receivable
in anticipation of future appropriations. At June 30, 2009, the
estimated liability for compensated absences, which includes the
University's share of the Florida Retirement System and FICA
contributions, totaled $160,758,358. The current portion of the
compensated absences liability is the amount expected to be paid
in the coming fiscal year, and is based on actual payouts over the
last three years, calculated as a percentage of those years' total
compensated absences liability.


E. Other Noncurrent Liabilities

The University participates in the Federal Perkins Loan
Program. Under this program, the University receives Federal


Tabl 15. Capta Lese Payabl


38 I UNIVERSITY OF FLORIDA


NOTES


Capital Leases


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


capital contributions which must be returned to the Federal
Government if the program has excess cash or the University
ceases to participate in the program. Federal capital contributions
held by the University totaled $20,069,670 at June 30, 2009.


SPOSTEMPLOYMENT HEALTH-
14 CARE BENEFITS PAYABLE
The University follows Governmental Accounting Standards
Board Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Penaions (GASB
45), for certain postemployment healthcare benefits administered
by the State Group Health Insurance Program.

Plan Description. Pursuant to the provisions of Section
112.0801, Florida Statutes, all employees who retire from the
University are eligible to participate in the State Group Health
Insurance Program, an agent multiple-employer defined-benefit
plan. The University subsidizes the premium rates paid by
retirees by allowing them to participate 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. Retirees are
required to enroll in the Federal Medicare program for their
primary coverage as soon as they are eligible. 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.

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 obligation, and the Plan is financed on a pay-
as-you-go basis. For the 2008-09 fiscal year, 1,141 retirees
received postemployment healthcare benefits. The University
provided required contributions of $6,715,000 toward the annual
OPEB cost, comprised of benefit payments made on behalf of
retirees for claims expenses (net of reinsurance), administrative
expenses, and reinsurance premiums. Retiree contributions
totaled $11,573,000.

Annual OPEB Cost and Net OPEB Obligation. The
University's annual 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 17 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.






2008-09 ANNUAL FINANCIAL REPORT


Table~~~~ ~ ~~ 17*nulOE otadNtOE
Oblemigation


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


Total

$ 6,944,000
8,582,000
621,000

16,147,000
442,000
(381,000)

16,208,000
(6,715,000)

9,493,000
10,155,000

$ 19,648,000


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, 2009, and for the transition and preceding years,
are presented in Table 18.


Fiscal Year

Beginning Balance, 7/1/07
2007-08
2008-09


Percentage of
Annual
Annual OPEB Cost Net OPEB
OPEB Cost Contributed Obligation


$ 17,490,000
16,208,000


$ 0
41.9% 10,155,000
41.4% 19,648,000


Funded Status and Funding Progress. As of July 1, 2007,
the most recent actuarial valuation date, the actuarial accrued
liability for benefits was $248,865,000, and the actuarial value
of assets was $0, resulting in an unfunded actuarial accrued
liability of $248,865,000 and a funded ratio of 0 percent.
The covered payroll (annual payroll of active participating
employees) was $952,630,000 for the 2008-09 fiscal year, and
the ratio of the unfunded actuarial accrued liability to the
covered payroll was 26.1%.

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 determined
regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision
as actual results are compared with past expectations and new
estimates are made about the future. The Schedule of Funding
Progress, presented as other required supplementary information
following the Notes to Financial Statements, presents multiyear
trend information that shows whether the actuarial value of


plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions. 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 pattern of sharing of benefit
costs between the employer and participating members. The
actuarial methods and assumptions used include techniques
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 OPEB actuarial valuation as of July 1, 2007,
used the entry age cost actuarial method to estimate the unfunded
actuarial liability as of June 30, 2009, and the estimated 2008-
09 fiscal year annual required contribution. This method was
selected because it is the same method used for the valuation
of the Florida Retirement System. Because the OPEB liability
is currently unfunded, the actuarial assumptions included a
4% rate of return on invested assets, which is the University's
expectation of investment returns under its investment policy.
The actuarial assumptions also included a payroll growth rate
of 4% per year. Initial healthcare cost trend rates for employees
covered by Medicare was 9.1%, and was 9.6% for employees not
covered by Medicare, grading to 5.5% in half-percent steps. The
unfunded actuarial accrued liability is being amortized over 30
years using the level percentage of projected payroll on an open
basis. The remaining amortization period at June 30, 2009, was
28 years.


1 5 INTERDEPARTMENTAL
1 AUXILIARY SALES
Interdepartmental sales between auxiliary service departments
and other institutional departments have been eliminated
from expenses and revenues for reporting purposes. The
interdepartmental transactions eliminated in the financial
statement preparation totaled $102,169,263 for the fiscal year
ended June 30, 2009.


16FUNCTIONAL DISTRIBUTION
16 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 attributable to the department. For example, activities
of academic departments for which the primary departmental
function is instruction may include some activities other than
direct instruction, such as research and public service. However,
when the primary mission of those departments consists of
instructional program elements, all expenses of those departments
are reported under the instruction classification. The operating


A COMPONENT UNIT OF THE STATE OF FLORIDA I 39





NOTES


expenses on the Statement of Revenues, Expenses, and Changes
in Net Assets are presented by natural classifications. Table 19
presents those same expenses in functional classifications as
recommended by NACUBO.

Tabls 1.FntoaExe


Functional Classification


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


Amount
(in thousands)

$ 563,480
466,585
405,171
125,362
28,209
106,863
106,072
73,751
125,459
120,508
$ 2,121,460


17 CONSTRUCTION
17. COMMITMENTS
The University's construction commitments at June 30, 2009,
are presented in Table 20.



18 RETIREMENT PROGRAMS

A. Florida Retirement System

Essentially all regular employees of the University are eligible to
enroll as members of the State-administered Florida Retirement
System (FRS). Provisions relating to FRS 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 eligibility, contributions, and benefits are defined
and described in detail. FRS is a single retirement system
administered by the Department of Management Services,
Division of Retirement, and consists of two cost-sharing,
multiple-employer retirement plans and other nonintegrated
programs. These include a defined-benefit pension plan (Plan),
a Deferred Retirement Option Program (DROP), and a defined-
contribution plan, referred to as the Public Employee Optional
Retirement Program (PEORP).

Employees in the Plan vest at six years of service. All vested
members are eligible for normal retirement benefits at age 62 or
at any age after 30 years of service, which may include up to four
years of credit for military service. The Plan also includes an
early retirement provision; however, there is a benefit reduction
for eachyear a member retires before his or her normal retirement
date. The Plan provides retirement, disability and death benefits,
and annual cost-of-living adjustments.


DROP, subject to provisions 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 employer. An employee
may participate in the DROP for a period not to exceed 60
months after electing to participate. During the period of
DROP participation, deferred monthly benefits are held in the
FRS Trust Fund and accrue interest.

The State of Florida establishes contribution rates for participating
employers. Employer contribution rates (none from employees)
during the 2008-09 fiscal year are presented in Table 21.

The University's liability for participation is limited to the
payment of the required contribution at the rates and frequencies
established by law on future payrolls of the University. The
University's contributions for the fiscal years ended June 30,
2007, June 30, 2008, and June 30, 2009, totaled $33,877,529,
$33,574,700 and $34,080,768, respectively, which were equal to
the required contributions for each fiscal year.

As provided in Section 121.4501, Florida Statutes, eligible
FRS members may elect to participate in the PEORP 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 Class, Senior
Management Service Class, etc.). Contributions are directed to
individual member accounts, and the individual members allocate
contributions and account balances among various approved
investment choices. Employees in PEORP vest at one year of
service. There were 1,435 University participants during the
2008-09 fiscal year. Required contributions made to the PEORP
totaled $4,855,659.

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

B. State University System Optional
Retirement Program
Section 121.35, Florida Statutes, provides for an Optional
Retirement Program (Program) for eligible university
instructors and administrators. 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.


40 I UNIVERSITY OF FLORIDA






2008-09 ANNUAL FINANCIAL REPORT


I 5 Tal 20 Costu io Co mt et I


Project Name

Pathogen Research Facility
Veterinary Medicine Education and Clinical Research Center
Southwest Parking Garage Complex
Cellulosic Ethanol Plant
Southwest Recreational Center Expansion
East Campus Office Building
Counseling and Wellness Center
Chemistry/Biology Building
Graduate Studies Building (Hough Hall)
Lake Nona Research Facility
Levin Law School Trial Center
Harn Asian Wing
Corry Village Utilities Infrastructure Improvements
McCarty Chiller Loop Retrofit
Biomedical Science Building
PK Yonge Developmental Research
Various Non-capital Projects
Oil Switch Replacement
Reitz Union Renovations and Repairs
Aquatic Pathogen Building Addition
Building No. 0454 Air Handling Unit Replacement
2006-07 PK Yonge School Maintenance Repairs and Renovations
2007-08 PK Yonge School Maintenance Repairs and Renovations
Agricultural & Biological Engineering/ Horticulture Sciences, Growth Chambers
Heating, Ventilation and Air Conditioning Upgrade on 4th Floor of Yon Hall
Yon Hall Roof, Heating, Ventilation and Air Conditioning and Window
Food Science Building Renovation- Phase 1

Subtotal
Projects Under $1,000,000

Total







Class Percent of Gross Salary (A)

Florida Retirement System, Regular 9.85%
Florida Retirement System, Senior Management Service 13.12%
Florida Retirement System, Special Risk 20.92%
Deferred Retirement Option Program-Applicable to members
from all of the above classes 10.91%
Florida Retirement System, Reemployed Retiree (B)

(A) Employer rates for each membership class include 1.11% for the postemployment
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 in which reemployed.



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 positions 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 employing university contributes, on
behalf of the participant, 10.43% of the participant's salary, less a
small amount used to cover administrative costs. The remaining
contribution is invested in the company or companies selected
by the participant to create a fund for the purchase of annuities


Total Commitment

$ 52,939,715
57,501,246
20,270,410
20,000,000
16,284,523
14,955,051
7,665,217
7,608,204
11,194,800
6,000,000
5,146,111
4,980,750
4,187,400
3,946,500
3,600,000
2,000,000
1,553,237
1,517,757
1,480,000
1,267,086
1,159,712
1,123,669
1,114,248
1,113,394
1,054,000
1,033,574
1,019,000

251,715,604
43,920,815

$ 295,636,419


Completed to Date

$ 37,030,837
6,996,584
17,244,784
396,312
421,148
382,542
1,579,669
166,712
4,851,088
1,124,557
4,128,572
743,843
237,135
552,378
202,042
346,893
270
633,794
686,538
62,724
861,991
33,152
105,704
152,845
420,448
421,633
371,370

80,155,565
30,478,410

$ 110,633,975


Balance Committed

$ 15,908,878
50,504,662
3,025,626
19,603,688
15,863,375
14,572,509
6,085,548
7,441,492
6,343,712
4,875,443
1,017,539
4,236,907
3,950,265
3,394,122
3,397,958
1,653,107
1,552,967
883,963
793,462
1,204,362
297,721
1,090,517
1,008,544
960,549
633,552
611,941
647,630

171,560,039
13,442,405

$ 185,002,444


at retirement. The participant may contribute, by payroll
deduction, an amount not to exceed the percentage contributed
by the University to the participant's annuity account.

There were 5,424 University participants during the 2008-
09 fiscal year. Required employer contributions made to the
Program totaled $44,581,028 and employee contributions totaled
$19,797,547.


C. Institute of Food and Agricultural
Sciences Supplemental Retirement

In 1984, the Florida Legislature enacted the Institute of Food and
Agricultural Sciences Supplemental Retirement Act to provide a
supplement to the monthly retirement benefit being paid under
the Federal Civil Service Retirement System to retirees of
the Institute of Food and Agricultural Sciences (IFAS) at the
University of Florida. The supplement is designated for IFAS
cooperative extension 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 additional persons can become eligible for this supplement.


A COMPONENT UNIT OF THE STATE OF FLORIDA I 41





NOTES


There were 57 University participants during the 2008-09 fiscal
year. Required employer contributions made to the program
totaled $915,018. Employees do not contribute to this program.

D. Other Retirement Programs
Some University employees participate in the Florida Teachers'
Retirement System and the United States Civil Service
Retirement System. Two employees were covered by the
Florida Teachers' Retirement System during the 2008-09 fiscal
year. Employer contributions totaled $30,350, and employee
contributions totaled $16,713. Sixty-six employees were covered
by the United States Civil Service Retirement System during the
2008-09 fiscal year. Employer contributions totaled $395,691,
and employee contributions totaled $388,452.


1 9 RISK MANAGEMENT
J1 PROGRAMS

A. State Self-Insurance Programs
The University is exposed to various risks of loss related to torts;
theft of, damage to, anddestruction 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 coverage for property and
casualty, workers' compensation, general liability, automotive
liability, and employment action. During the 2008-09 fiscal
year, for property losses, the State retained the first $2 million
of losses for each occurrence with an annual aggregate retention
of $40 million for named wind and flood losses and no annual
aggregate retention for all other named perils. After the annual
aggregate retention, losses in excess of $2 million per occurrence
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, and losses exceeding those amounts
were retained by the State. No excess insurance coverage is
provided for workers' compensation, general and automotive
liability, 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
employees may obtain healthcare services through participation
in the State's group health insurance plan or through membership


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

B. University Self-Insurance Programs
The University of Florida Self-Insurance Program (Program)
was reestablished by the Florida Board of Governors effective
July 1, 2006, by amending Board of Governors' Regulation
10.001, merging the then JHMHC Self-Insurance Program
and the prior University of Florida JHMHC/Jacksonville
Self-Insurance Program. The Program provides general and
professional liability protection for the University on behalf
of the six health colleges of the JHMHC, which also includes
the Student Health Service Auxiliary, the Veterinary Medicine
Teaching Hospital, and the University of Florida Proton Therapy
Institute. Hospital professional liability protection, including
patient general liability, is provided to Shands Teaching Hospital
and Clinics, Inc.; Shands Jacksonville Medical Center, Inc.;
Shands community hospitals in Starke, Lake City and Live
Oak; and other statutorily permitted entities, which voluntarily
participate in the Program. 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 Program provides $2
million per-claim protection for the participants which are not
subject to the provisions of Section 768.28, Florida Statutes. The
per-claim limit of liability protection for the participants does not
exceed $2 million per claim in the event more than one protected
entity is involved in the same claim or action.
Pursuant to Board of Governors' Regulation 10.001(2), the
University of Florida Self-Insurance Program Council has
createdthe 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 protections afforded by the Program, at
limits of $4 million per-claim coverage for insured participants
subject 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 coverages described above. The excess
insurance is paid to claimants on a first-come, first-serve basis.


42 I UNIVERSITY OF FLORIDA





2008-09 ANNUAL FINANCIAL REPORT


Claims settlement and adjustment expenses are accrued as
expenses and liabilities of the Program and HEIC. The estimated
settlement value of claims, which was determined based on the
judgment and experience of management and the Self-Insurance
Program Council through a case-by-case review, is reported as
a liability for self-insured claims. Estimated losses from incurred
but unreported incidents are also accrued based upon the
findings of casualty actuaries.

The liability for self-insured claims at June 30, 2009, of
$99,842,064, which includes compensatory losses and allocated
expenses, was accrued at an undiscounted present value.
At June 30, 2009, aggregate claims liabilities totaling $426,027
have been removed from the related liabilities on the Statement
of Net Assets. Annuity contracts have been purchased for these
liabilities in the claimants' names and assigned to third parties
upon the claimants' release of the Program and HEIC from all
actual and contingent liabilities.

Changes in the balances of claims liabilities for the Program and
HEIC during the 2007-08 and 2008-09 fiscal years are presented
in Table 22.


2 LITIGATION AND
20 CONTINGENCY
The University is involved in several pending and threatened
legal actions. The range of potential loss from all such claims
and actions, as estimated by the University's legal counsel
and management, should not materially affect the University's
financial position.

The grant revenue amounts received are subject to audit and
adjustment. If any expenditures or expenses are disallowed
by the grantor agencies as a result of such an audit, any claim
for reimbursement to the grantor agencies would become a


liability of the University. In the opinion of management, all
grant expenditures are in compliance with the terms of the
grant agreements and applicable Federal and State laws and
regulations.



21. COMPONENT UNITS
The University has 24 component units, as discussed in Note
1. These component units comprise 100% of the transactions
and account balances of the aggregate 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 23, 24, and 25.


S SEGMENT
*22 INFORMATION
A segment is defined as an identifiable activity (or grouping of
activities) that has one or more bonds or other debt instruments
outstanding, with a revenue stream pledged in support of that
debt. In addition, the activity's 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 Department of Housing
and Residence Education 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 26.


I Tbl 2 .Laiit o S el-Inue Clim


Current
Claims Liabilities
Fiscal Year Beginning of Year


Claims/Changes
in Estimates


$ 88,043,550 $ 23,847,333
95,111,000 20,692,009


Claims
Liabilities End
Claims Payments of Year


$ (16,779,883)
(15,960,945)


$ 95,111,000
99,842,064


A COMPONENT UNIT OF THE STATE OF FLORIDA I 43


2007-08
2008-09






NOTES


I. Tb le 23. m mre 0o Orizt ios (l 9i


The University The University
University of Florida The University of Florida
of Florida Research Athletic Gator Law Center
Foundation, Inc. Foundation, Inc. Association, Inc. Boosters, Inc. Association, Inc.
6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009


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-Nonexpendable Endowment
Restricted-Expendable Endowment
Restricted-Other
Unrestricted


Total Net Assets


$ $
79,586 138,597
50,672
1,245,971 688

1,376,229 139,285


7,600 13,314
16,319 26,319
21,445 31,800

45,364 71,433


8,701
1,001,259
123,207
247,019
(49,321) 67,852

$ 1,330,865 $ 67,852


$ 900
56,325
168,811
35,060

261,096


105
67,260
96,971

164,336


79,615


333
16,812


$ 3,171 $ 4,246
2,204 1,434
36
480 1

5,891 5,681


4,344
315 181
200

4,859 181


36
479 2,042

2,672
517 786


$ 96,760 $ 1,032 $ 5,500


$
4,920
911



5,831


2,254


910




2,667

$ 3,577


CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS


Operating Revenues
Operating Expenses

Operating Income (Loss)


Nonoperating Revenues (Expenses)
Investment Income (Loss)
Decrease in the Fair Value of Investments
Addition to Permanent Endowments
Other
Transfers from/(to) Component Units


$ 100,299 $ 56,957
(164,783) (49,661)


(64,484)


(64,840)
(146,693)


1,308
(15,657)


46,372
(5,350) 2,729
(3,416) -


$ 65,564
(94,743)


(29,179)


1,796
(12,085)

(4,834)
39,033


$ 38,614 $ 396
(2,719) (966)


$ 2,191
(1,767)


35,895


1,269 (871)

16
5
(40,585) 72


Change in Net Assets


Net Assets, Beginning of Year


Net Assets, End of Year


1,569,276 72,176

$ 1,330,865 $ 67,852


102,029

$ 96,760


4,437 6,864

$ 1,032 $ 5,500


44 I UNIVERSITY OF FLORIDA


Florida
Foundation
Seed
Producers, Inc.
6/30/2009


(238,411)


(4,324)


(5,269)


(3,405)


(1,364)


3,106

$ 3,577






2008-09 ANNUAL FINANCIAL REPORT


Southwest Citrus
Florida Research Research and
and Education Education
Foundation, Inc. Foundation, Inc.
6/30/2009 6/30/2009





$ $ 32
45 823
107 51



152 906




2 30



2 30


Florida
4-H Club
Foundation, Inc.
3/31/2009





$ 3,050
1,086

249

4,385




217



217




2,677

1,086
405

$ 4,168


University
of Florida Treasure Coast
Leadership and Agricultural
Education Research
Foundation, Inc. Foundation, Inc.
12/31/2008 6/30/2009





$ 2,484 $
1,563 457
1



4,047 458


University
of Florida
Alumni
Association, Inc.
6/30/2009


University
of Florida Total
Investment Direct
Corporation Support
6/30/2009 Organizations


1,274
37
839

2,150


870 -848
882

870 -1,730


$ 13,883
288,314
220,626
1,283,288

1,806,111



27,573
112,405
151,298

291,276


1 -37 89,459
2,233 -- 1,008,690
123,207
251,110
944 457 383 42,369

$ 3,177 $ 458 $ $ 420 $ 1,514,835


$1,893
(1,756)

137


$ 30 $ 510
(42) (616)

(12) (106)


$ 3,100 $ $ 2,085 $
(3,169) (4) (5,695) (2,213)

(69) (4) (3,610) (2,213)


(11) (91)

161 967

$ 150 $ 876


(574) 4 10 (62,649)
(174,435)
46,388
(73) (7,558)
3,610 2,528 1,242

(716) -- 325 (253,507)

3,893 458 95 1,768,342

$ 3,177 $ 458 $ $ 420 $ 1,514,835


A COMPONENT UNIT OF THE STATE OF FLORIDA I 45


42 825

$ 150 $ 876


(35)


(712)

4,880

$ 4,168


$ 271,639
(328,134)

(56,495)






NOTES


I Tal 24. Helt Scec Cete Afiiae (aout exrse in thousad s)


Florida
Clinical
Practice
Association, Inc.
6/30/2009


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
Unrestricted


Total Net Assets


$ 3,466
57,311
6,112
42,709

109,598




9,955
31

9,986


6,039

93,573

$ 99,612


University of
Florida
Jacksonville Faculty
Physicians, Inc. Associates, Inc.
6/30/2009 6/30/2009


$ 2,901 $
38,717 5,277
12,760
107

54,485 5,277


4,562
3,276 943
14,538

22,376 943


3,025

29,084 4,334

$ 32,109 $ 4,334


CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS


Operating Revenues
Operating Expenses

Operating Income (Loss)

Nonoperating Revenues (Expenses)
Investment Income
Decrease in the Fair Value of Investments
Other
Transfers from/(to) Component Units

Change in Net Assets

Net Assets, Beginning of Year

Adjustments to Beginning Net Assets

Net Assets, Beginning of Year, as Restated

Net Assets, End of Year


$ 263,485
(68,835)

194,650


737

(222,821)
32,754

5,320

69,780

24,512

94,292

$ 99,612


$ 163,500 $ 18,143
(83,049) (1,829)

80,451 16,314


194

(97,861) (17,448)
15,157

(2,059) (1,134)

21,878 5,937

12,290 (469)

34,168 5,468

$ 32,109 $ 4,334


46 I UNIVERSITY OF FLORIDA






2008-09 ANNUAL FINANCIAL REPORT


University of University of
Florida Florida Florida College
Health College of Nursing of Pharmacy
Professions Faculty Practice Faculty Practice
Association, Inc. Association, Inc. Association, Inc.
6/30/2009 6/30/2009 6/30/2009


Florida
Veterinary
Medicine
Faculty
Association, Inc.
6/30/2009


University of
Florida
Jacksonville Faculty
Healthcare, Inc. Clinic, Inc.
6/30/2009 6/30/2009


4,211


4,211


4,211




66
996

1,062





3,149

$ 3,149





$ 7,109
(86)

7,023



14

(6,894)



143

2,486

520

3,006

$ 3,149


$ $
4,004 868
910



4,914 868




48



48



910

4,004 820

$ 4,914 $ 820





$ 603 $ 57
(45) (262)

558 (205)



45 21
(7)
1
(500)

104 (191)

5,013 1,011

(203)

4,810 1,011

$ 4,914 $ 820


$ 3
3,576




3,576




36



36





3,540

$ 3,540





$ 6,047
(403)

5,644



15

(4,793)



866

2,669

5

2,674

$ 3,540


$ 5 $
357 2,179
4,333 3,671
__1,587

4,695 7,437



2,317 34
2,009 401
_5,400

4,326 5,835



4,333 (2,029)
1,500
(3,964) 2,131

$ 369 $ 1,602





$ 360 $ 376
(21,154) (1,265)

(20,794) (889)



43

(8) (130)
20,802 990

__14

369 1,589

(1)

369 1,588

$ 369 $ 1,602


A COMPONENT UNIT OF THE STATE OF FLORIDA I 47


Total
Health
Science
Center
Affiliates


$ 6,372
116,500
27,786
44,403

195,061



6,913
16,734
20,965

44,612



12,278
1,500
136,671

$ 150,449





$ 459,680
(176,928)

282,752



1,069
(7)
(349,954)
69,203

3,063

110,732

36,654

147,386

$ 150,449






NOTES


I Table25. S HospitalandOths (s 9 t-d 9


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-Nonexpendable Endowment
Restricted-Other
Unrestricted


267,148


293,118


$ 568,692


Total Net Assets


267,351


414


$ 617


293,532


$ 569,309


CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS


$ 1,722,176 $ 1,356 $ 1,723,532
(1,602,236) (1,400) (1,603,636)


Operating Revenue
Operating Expenses


Operating Income (Loss)


119,940


Nonoperating Revenues (Expenses)
Investment Income
Decrease in the Fair Value of Investments
Other
Transfers from/(to) Component Units


Change in Net Assets


(52,408) (52,408)
(225,358) (13) (225,371)
(34,760) _(34,760)


(183,480)


Net Assets, Beginning of Year


(183,534)


752.172 671 752,843


$ 568,692 $ 617 $ 569,309


Net Assets, End of Year


48 I UNIVERSITY OF FLORIDA


Shands
Teaching
Hospital
& Clinics, Inc.
6/30/2009


University
Village
Apartments, Inc.
6/30/2009


Total
Shands
Hospital
and Others


8,179 $


39 $


648,837
904,574
120,851


1,682,441


162
608
651


1,460


648,999
905,182
121,502


1,683,901


259,057
850,692


1,113,749


559
284


843


259,616
850,976


1,114,592


119,896






2008-09 ANNUAL FINANCIAL REPORT


I T l 6 e n n


Transportation and
Parking Services


Department of
Housing and
Residence Education


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


$ 10,956,464
42,975,611
6.746.401

60,678,476


5,479,955
34,189,502

39,669,457


13,028,073
4,737,080
3,243,866

$ 21,009,019


$ 22,701,429
68,574,421
5,887,300

97,163,150


7,625,960
52,778,681

60,404,641


19,008,525
5,498,428
12,251,556

$ 36,758,509


CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS


Operating Revenues (Expenses):
Operating Revenues
Depreciation Expense
Other Operating Expenses

Operating Income

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

Net Nonoperating Revenues (Expenses)

Increase (Decrease) in Net Assets

Net Assets, Beginning of Year

Net Assets, End of Year


$ 19,022,308
(1,657,056)
(13,111,633)

4,253,619



(42,911)
(1,539,414)
(198,821)

(2.491.997)

(4,273,143)

(19,524)

21,028,543

$ 21,009,019


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


$ 5,800,009
(1,221,298)
(2,181,034)
(2,395,625)

2,052

1,674

$ 3,726


$ 40,351,366
(3,482,440)
(28,011,911)

8,857,015


1,000,932
750,279
(2,752,523)
(109,734)
(1,726,547)
(441,500)

(3,279,093)

5,577,922

31,180,587

$ 36,758,509


$ 12,750,155
(6,088,832)
(4,775,179)
26,621

1,912,765

20,159,510

$ 22,072,275


A COMPONENT UNIT OF THE STATE OF FLORIDA I 49






OTHER REQUIRED SUPPLEMENTARY INFORMATION


Actuarial
Accrued UAALasa
Actuarial Liability Unfunded Percentage
Actuarial Value of (AAL)- AAL Covered of Covered
Valuation Assets Entry Age (UAAL) Funded Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) [(B-A)/C]

7/1/2007 $ $ 269,126,000 $269,126,000 0% $788,731,602 34.1%
(1) 248,865,000 248,865,000 0% 952,630,000 26.1%

(1) The most recent actuarial valuation was July 1, 2007 An update, dated October 14, 2008, to the July 1, 2007, valuation took into account anticipated cost increases and retiree contribution
increases used in the July 31, 2008, report on the Financial Outlook for the State Employees' Group Self-Insurance Trust Fund


50 I UNIVERSITY OF FLORIDA






SUPPLEMENTAL INFORMATION


I Fiaca Aid gdiisee fo the Fisca Yea EddJn30 0069 (~unadtd


2008-09
Number of
Recipients

8,426
2,178
757
2,070
7
1,130
68
20,149

34,785


Federal Programs
Pell Grants
Supplemental Educational Opportunity Grants
National SMART Grant
Academic Competitiveness Grants
TEACH Grant
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 Program
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 Scholarships and Grants

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


658
134
135
927



202
31,508
664
32,374

33,301


10,873
6,115
5,377
22,365



3,664

26,029



910
10,675

11,585


Total Other Scholarships and Grants

Fee Waivers
Non-Resident Tuition Waivers
Other Waivers

Total Fee Waivers Administered

Total Financial Aid Administered


Aid
Disbursed

$ 27,136,065
2,087,989
2,218,788
1,841,189
28,000
2,992,419
669,182
204,343,557

$ 241,317,189


$ 593,608
220,783
700,861
1,515,252



620,545
91,153,034
970.860
92,744,439

$ 94,259,691


$ 27,810,250
10,260,425
11,376,569
49,447,244



12,771,760

$ 62,219,004



$ 4,171,775
27,508,245

$ 31,680,020

$ 429,475,904


A COMPONENT UNIT OF THE STATE OF FLORIDA I 51


2008-09 ANNUAL FINANCIAL REPORT




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University of Florida
ANNUAL FINANCIAL REPORT
2008-09


University of Florida Board of Trustees
Carlos J. Alfonso John J. (Jack) Mecholsky, Jr.
Tampa, FL Univerity of Floria Faculty Senate Chair


Earl Powell
Coral Gables, FL


J. Courtney Cunningham
Pinecrest, FL


Roland Daniels
Gainesville, FL

Jordan Johnson
University of Florida Student Bocy President

W. A. "Mac" McGriff III
Jacksonville, FL


Joelen Merkel
Ocean Ridge, FL

Dianna Fuller Morgan
Windermere, FL

Cynthia E O'Connell
Tallahassee, FL

S. Daniel Ponce
Miami, FL


Steven M. Scott
Boca Raton, FL

Alfred C. Warrington IV
Freeport, TX


Executive Officers
J. Bernard Machen
President

Jane Adams
Vice President for University Relations

Larry Arrington
Interim Senior Vice President for Agriculture and Natural Resources

Brian C. Beach
Interim Senior Vice Presidentfor Administration

Matthew M. Fajack
Vice President and Chief Financial Officer

Paula Varnes Fussell
Interim Vice President for Human Resource Services

Joseph Glover
Provost and Senior Vice Presdentfor Academic I "...*

David S. Guzick
Senior Vice President for Health Affairs

Jamie Lewis Keith
Vice President and General Counsel


Principal Finance and
Accounting Officials
Michael V McKee
Assistant Vice President and University Controller

Brad Staats
Assistant Vice President for Contracts and Grants
Accounting Services

Greg DuBois
Senior Adsociate Controllerfor University Purchasing
and Diburvement Services

Stuart E. Hoskins
Senior Adsociate Controller for University Financial
Services and Treaiury Management

Gloria Sheffield
Senior Adociate Controller for Operational Controvl
an Efficiencies, Financial Reporting and Cost Analysis

Kathleen Tillett
Senior Adsociate Controller for GeneralAccounting,
University Payroll, Tax Services an Adset Maanaqement


Winfred M. Phillips
Vice President for Researcb

Ed Poppell
Vice President for Business Affairs

Paul A. Robell
Vice President for Development and Alumni Affairs

Patricia Telles-Irvin
Vice President for Student Affairs



















































I:...pybyteUFNw Bra mnd Unvrst rhvs wwwufbuleuud







Michae V.Mce

Assistant:Vice President and

Unvrity Coroller



Post Office Box*113200




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