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 Independent auditors' report
 Required supplementary informa...
 Basic financial statements
 Report on internal control






Group Title: Financial statements, University of Florida Athletic Association, Inc.
Title: Financial statements, University of Florida Athletic Association, Inc. June 30, 2005 and 2004.
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 Material Information
Title: Financial statements, University of Florida Athletic Association, Inc. June 30, 2005 and 2004.
Series Title: Financial statements, University of Florida Athletic Association, Inc.
Physical Description: Serial
Language: English
Creator: University Athletic Association, Inc.
Publisher: University Athletic Association, Inc.
Publication Date: 2004-2005
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Bibliographic ID: UF00086916
Volume ID: VID00001
Source Institution: University of Florida
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Table of Contents
    Front Cover
        Front Cover
    Table of Contents
        Table of Contents
    Independent auditors' report
        Page 1
    Required supplementary information
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
    Basic financial statements
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
    Report on internal control
        Page 32
Full Text
















LI i' 'ERSITY ATHLETIC .'.'. i T I I

'1114, lI :, lISTA I:;I "I I

3Jli i.i. 30, :I'-AND 2004









U: i ERSITY ATHLETIC
JUNE 30, 2005 2004
TABLE I' I i I ,. i '







,.1 .,.. A auditors' .

.1 .. .... 3 .,., .. Inform action
Management's" I I 1 ,and/ ..1! 1.


Basic Financial -I i. ...'-1 w
Statements of Net Assets
Statements of .. ,i- Expenses, and( ( I,
Statements of Cash Flows
Notes to Financial Statements


in Net Assets


16-17
18-31


Tr ..... i on .; U.i .: Control over I n i... *.1 II"" IIaI and on
C.-i,...i,: .l and 1I. .. M matters A' on an Audit of ':..i.i n i 1
Statements 11 .i. ..... in Accordance with Government.
r .: .


, ll


2 -13









C(RTIHPE PUBLIC ACCOUNIAN'IS
AND (CONS() LTANTS






The ... i of "i ,
University A : 1 .. Association, Inc.:


We have -. ;i the accompanying basic financial statements of the University Athletic Association, Inc.
(the Association), a ,l. support organization and component unit (for accounting :; ...-. only) of the
University of Florida, as of and for the years ended June 30, 2005 and 2004, as listed in the table of
contents. These basic financial statements are the responsibility of the Association's management. Our
S, I I'i.. ,is to .. ..I: .;. on i .. basic financial statements based on our audit.

We conducted our audit in accordance with 'ii'.;:u standards ...i,! accepted in the United States of
America and the standards ;.l, .!.... to financial audits contained in Government Auditing Standards,
issued by the ( ;C i r-.i I. n General of the United States. Those standards -. '1i-" that we plan and perform
the audit to obtain reasonable assurance about 1b, i,. i the basic financial statements are .. of material
misstatement. An audit includes .i' r, on a test basis, evidence ,.I,.i;^. the amounts and
disclosures in the basic financial statements. An audit also includes assessing the accounting ;.;. ;,I. .
used and significant estimates made by management, as well as evaluating the overall basic i... .11
statement .. '..i We believe that our audit provides a reasonable basis for our opinion.

In our ..ii..., the basic financial statements, -i... 1 i to above present fairly, in all material -,.. the
financial .... ;i... of the Association as of June 30, 2005 and 2004, and its revenues, i '. and
changes in net assets and its cash ih-. for the years then ended in conformity with accounting ; i;. ..
. i.. I IfIl accepted in ;i United 1 of America.

In accordance with Government .. -.* .. ....... we have also issued our report dated August 19,
2005, on our consideration of i'. Association's internal control over financial ...--i;ii and on our tests
of its .. u!i,, .- with certain .,., i ;';-i of laws, regulations, contracts and grant agreements and other
matters. The -i'i ... of that ,. .t is to I i.i-- the scope of our '; i;.'. of internal control over financial
reporting and 4 i..l .,i and the results of that I i.,.' and not to ;... ;.1. an '.:A.i ,, on the internal
control over financial .. -. ..i'r., or on ... i 'i '* That report is an integral part of an audit ,, r .... .1 in
accordance with Government. Standards and should be considered in assessing the results of our


'II management's i r :, and analysis on pages 2 '-i. ', 13 is not a required part of the basic
financial statements but is '! i. i information required by accounting principles i,,.,..i
S..1. -I in the United States of America. We have applied certain In,' ., procedures, which consisted
, "I n H.. i of inquiries of management .. ';,: the methods of measurement and ,, iiii.... of the
required .,;..l1. ,. information. However, we did not audit the information and .. no opinion
on it.




Augut 19,


August 19, ':"'.'.







UNIVERSITY t. ;, .' li .1 I -1 T,-.
i 4 i! .- I:- NT'S II'; : r. ...lI, '- 11 ANALYSIS
JUNE 30, 1. 7 2004





The University A fll ;. Association, Inc. (the Association), a not-for-profit corporation, is a .I
" InI..... Organization of the University of : ;- i-. (UF). The Association exists to advance UF's 1 1 I i,
research and service m missions ; l. o I. the i :.! i .;..- i:.:. I.. .ji

The Association's goal is to be the nation's finest intercollegiate ill,.- ., i ,, where each coach has
'... i i and .r.. ir' career ,'.,i! ri; .and each ri .., .1- i, has every "i r i .*i for athletic
and academic success. The Association recognizes its responsibility to UF to operate the Association in
an efficient manner using sound business j. ; :.. i, ?, within an ethical decision making process.

The tremendous success of the athletic program can be attributed to ,i i 1- factors: outstanding coaches
and support staff, extremely talented student-athletes, a great academic institution, a strong recruiting
base, university ii 1 .1 and a commitment to each sport. The Association's financial I...l,.-li is also a
very key component in its success and is a major factor in maintaining or surpassing its current level of
achievement in all the Association's endeavors.

Overview of the ,l ,,- i. .1 1' "i ,... .. and 7,ir ..1. a I.1 Analysis

The Association is pleased to ::;- -Pni its financial statements for the fiscal years ended June 30, 2005 and
2004. This i 'i and analysis is a narrative explanation of the Association's financial. Ir, 1, ..r i and
,.- i :.._.. activities for these years. The overview w i. I. below I 'Ilj .li the .111. 11i financial
activities that occurred during the past two years and describes changes in financial activity from the prior
year. Please read this overview in conjunction with the .II .ni.. 'i summaries of net assets and
revenues, .. and changes in net assets and the Association's financial statements which begin on
r-" iI- 14.

Using these Financial Statements

This I..... consists of a series of financial statements, 1 in accordance with the Governmental
Accounting Standards II ,' i (GA I .) !, 1I; No. 34, Basic Financial Statements and Management's
Discussion and Analysis for State and Local Governments and Statement No. 35, .... Financial
Statements and 1. .. .. ..*."s ... ./ and Analysis -for C. .*.', and Universities.

There are three financial statements presented: the Statements of Net Assets; the Statements of :' .'venues,
iI I' and Changes in Net Assets; and the -r. m ia of Cash Flows.

The Association's net assets are one indicator of the "',.. -' :ii or erosion of its financial health when
considered with nonfinancial facts such as the < ,ii academic and ill, <.; success of the ;'L ii ;!.
athletic program and the condition of its facilities. This success is evidenced by:







U I: 'ERSITY TI FTIC ASSOCIATE cT I, INC.
-0I I GEM ENT'S ol-I I I1.'.. l1-1i N ANAL 11!.;
JU 11hr 30, 'i o /. 1 .i ., i'".
(Continued)

SThe overall University of Florida athletic program ranked sixth best in the .,;-I ; national all-
!,..,1. ... i. I' I .1 by the National Association of Collegiate I'i. i. of A lil- i
(iIlA ;-

SFlorida has ranked among the nation's 10 best *-Ik1 ....-- athletic programs for 22 consecutive
years. Florida and UCLA are the only schools to finish in the top 10 in national .i .; rankings
every year since 1983-84.

SEleven Gator athletic teams turned in top-10 finishes in 2004-05, just off the school record of 12
set in three previous seasons. Florida's top-10 ,. .. ..' ,. in ;-o'! ir ; include: .1 (" '.i) Men's
Indoor Track & Field .. i1, Women's Indoor Track & Field (2nd), Men's Outdoor Track & Field
(-'.i), Men's Tennis (T-2',i, Women's Tennis (T-3rd), Women's Swimming & Diving (4th),
Men's Swimming & Diving (5th), Gymnastics ( i,:, Women's Golf (10th), Women's Outdoor
Track & Field (T-10th)

SFour UF teams finished among the nation's top two in ".'1, ,i 1,.1. in,.. the ."-.i. in record set
last year.

SEight teams turned in top-five NCAA finishes, *.,' 1: .. UF's record (1989-90, 2003-04).

* In Southeastern Conference ( .A '') action, Ti,..i. won three league titles in 2004-05 baseball,
men's tennis and volleyball. In addition, Florida claimed ': Tournament titles in men's
I, ,. i ,i, i soccer, and men and women's tennis. For the 14th consecutive year, UF was awarded
the New York II ,.. .- LI..if "I.- i' ... Group SEC All-Sports title. The Gator program also
finished first in the men's competition and third in the women's race. C1 .,.r.;.- medalist swimmer
.1n Lochte was named the SEC Male Athlete of the Year in June, joining Danny n- i i
(1996, '97) as the only Gator males to win the prestigious honor.

SNine 1. i ;, .1 NCAA event titles were claimed by ..1.: and 64 UF ilr, .,' :,l 1 earned
146 All-America honors in 2004-05.

*' i.. I. was also successful away from the athletic arena in '";.i. '-., earning a league-high 173
SEC Academic Honor Roll accolades in league ,. "II ';,.. j. ..- sports. In the last 10
years, UF Il1. 1.1 .ii. P, have been iL I :ii, I, on the SEC Academic Honor Roll 1,317 times,
also a league high. Five UF L. .f-. ,,1r. i-. also earned spots on ESPN The Magazine Academic
All-America teams in 'i '0- I i the top total among SEC schools.

SIn an era when the NCAA estimates 70 percent of Division I schools are losing money on
intercollegiate I1.--. the University of Florida Athletic Association has. I i '. more than
'T- million since 1990 to help fund University. I. II i, I : academic endeavors.

S914,661 fans attended 150 ; :' home events. Four UF teams ranked among the nation's top 10
in attendance.

SUF -iol .. ., i,..1i ,. in Goodwill Gator activities, volunteered more .d; 1. 1,273 hours
and reached 3,500 area youth.







I l-!f i ii I l i lI -, LTIC A SSO C : I. '1-- .il 1,
I:.< I I I- il 1 i. li .. D ISCU -, --^ N I ,YSIS
JU i '!,'30, I i
(C. .,, ,)

,,, *, ,i ,! of Net Assets

I- Statements of Net Assets in the assets, liabilities and net assets of the Association as of the end
of the last two fiscal years. The Statement (o I 1. I Assets is a point in time financial statement. Its purpose
is to -.r 3 ..i to the readers of the financial statements a fiscal ,i I' !. .; of the Association. The '.i ,i ':.
of Net Assets :.- ii end--,. 1 ..n data concerning Assets (what the Association owns and is owed to
the Association by others), Liabilities (what the Association owes to others and has collected from others
before the service has been I... .i ), and Net Assets (Assets minus I iC,;,.. ) The statements are
i'.. I.... using .. economic resources measurement focus and the accrual basis of ..... ,.;,. where
revenues are recorded when they are earned and I- i 11 are recognized when they are incurred.

From the data r. .. -i ..I readers of the Statements of Net Assets are able to determine the assets available
to continue the, -r i ... of the Association. They are able to determine how much the Association owes
to vendors and lending institutions. -'n.: the Statements of Net Assets F,. ;1- a picture of the net
assets and their ;r I I...!i. for expenditure by the Association.

Net assets are divided into three major categories. The first category, .. 1 in capital assets, net of
related debt", presents the Association's .ruL in ..,. i' plant and equipment. The next net asset
category is :; ; .:" net assets. The Association's restricted net assets have constraints placed upon
their use by ii.. .... i vi donors. The final category is ",i,. i,. *. :, i net assets. Unrestricted assets are
available to the Association for any legal use.

Condensed Summary of Net Assets (thousands of dollars)
2005-2004
Increase Percent Increase Percent
2005 2004 (decrease) change 2003 (decrease) change

Assets:
Current assets $ 43,582 $ 40,148 3,434 8.55% $ 43,719 (3,571) (8.17)%
Capital assets, net of depreciation 125,358 124,002 1,356 109% 117,643 6,359 5.41%
Other assets 31,781 30,007 1,774 5.91% 26,461 3,546 13.40%

Total assets 200,721 194,157 6,564 3.38% 187,823 6,334 3.37%

Liabilities:
Long-term debt outstanding 76,410 77,935 (1,525) (1.96)% 79,300 (1,365) (1.72)%
Other liabilities 49,996 45,781 4215 9.21% 46,762 (981) (2.10)%

Total liabilities 126,406 123,716 2,690 2.17% 126,062 (2,346) (1.86)%

Net assets:
Invested in capital assets, net of
related debt 49,464 46,572 2,892 6.21% 44,069 2,503 5.68%
Restricted 15 354 (339) (95.76)% 366 (12) (3.28)%
Unrestricted 24,836 23,515 1,321 5.62% 17,326 6,189 35.72%0

Total net assets $ 74,315 $ 70,441 3,874 5.50% $ 61,761 8,680 14.05%







UNI i: .. iTY ATHLI* -1 : 1 IA .? i ihA I'.
i I ii i EM ENT'S h ^I-. .li N T i1,
Si ii '30, 2005 AND 1K
(Continued)



* Total assets of the Association increased by $6.6 million in 2005 and by $6.3 million in 2004.

* In 'i. ., current assets increased $3.5 million due to a $5.6 million increase in accounts receivable
from Gator 'I .-. and home ; .r!. ,il game .i i nd and a net decrease of $2.1 million in cash
and cash equivalents and short term investments. In 2004, cash and cash equivalents decreased
and short term investments increased, for a net decrease ,'i -. ;.6 million.

Capital assets increased $1.4 million t L;11..'i : due to the -iii, ,< of a :ii.. Beech King Air
S'v airplane and the ,..:i1.il.J]I of the ; I., ij. i 'i [i 'In *- 1 ;i .1n The $6 million increase in
,.iii..! assets in "-'i! is i l.ib due to construction in progress on the north end zone
scoreboard and construction costs associated with the :i. i : stadium expansion.

SOther assets increased by $1.8 million in 2005, due to an increase of T'.' million in long term
investments and a $500 thousand reduction in assets held by the University of Florida Foundation.
In 2004, other assets increased by $3.6 million, due to an increase of $10 million in long term
investments, a decrease of $5 million in construction trust funds from the 2001 bonds used to
cover football stadium ,' 11, iI .... ,l 4Ii'.- and a decrease of $1.4 million in other assets due
to a payment by the University of Florida Foundation, which was .1[ li. towards the purchase of
a Cessna Citation airplane in 2003.

SLong term debt .ui '.d'lrlI, decreased by $1.5 million and $1.3 ,.ii.;., in 2005 and 2004,
respectively, due to loan "- .... -In!

Other liabilities increased by $4.2 million in 'i : due to an increase in deferred Gator; .
contributions related to the 2005 football season and an increase in accounts payable and accrued
expenses. In 2004, -:, .. liabilities decreased by 'r a $1 ,mIIII I in 'i;' I due to a
decrease in accounts I..r 11.- and accrued expenses.

STotal net assets increased by $3.9 million in ', and by $8.6 i ,1' .. in 2004. Unrestricted net
assets increased by $1.3 r .ii *. in 2005 and by .. million in 2004

Net assets invested in i i.il assets, net of related debt increased by $2.9 i,;li;, i, in 2005 due to
.. no. ,! of $1.5 ..ill.!- on long term debt, : ...... I of $7.2 million in fixed assets, ,,. Iwiii,
the .w, I. of a B'i.' Beech King Air '. 'niu n; ...!,. and the. I.I.i.. :..-ii of the football stadium
l. .., and rp i $5.8 ili ii in I ; ... In 2004, net assets invested in i,; i
assets, net of related debt increased by $2.5 million due to ,:. ii.'-i of $1.5 million on long term
debt, .i. :L, of $11.6 million in fixed assets, r. l1;,. of i. in construction trust funds on the
football .,'.- ,.i. n ; .i and expensing million in P1. .. :. ,

r. < d net assets decreased by $340 thousand in 2005 due to the reduction of assets held by the
University c i i ., : Foundation.







1II 1.i 'ERSITY ATHLETIC ASSOCIAT-, 1' 1 INC.
M ANA 'I i 1 .. I ... i: I .. N i'l, 1 iYSIS
JU ',i; 30, 2005 A I i 2004
(Continued)

.; !;. of ... i, :I and Changes in I '. .. Assets

The Statements of Revenues, 'I i.-... and (I: ., in Net Assets present the revenues and. t "'.
incurred during each year. ". ; and expenses are I I .i. .1 as. .. .. i n.- and i.. .l .. >fi,. The GASB
requires that state I,,pl;..i: i.. student athletic fees and *':r*i revenues which are not payment for
services be classified as *........... : i, revenues. Likewise, interest on .1.4il asset related debt is
classified as a -. I. Iliii-. expense. these revenues are budgeted to fund operating ,..'1 .
classifying them as iri i.i. -...'-. can cause the ;. t-,i.1;,- of an operating loss. The ,. ,." .
that income 1i: i .. i ..". ,.-..... ... (which includes i...; .i.,-, revenues and i'- .' provides the
most I1'4 ri.- i'i -, measure of its financial results. The utilization of long-lived assets, referred to as
Capital Assets, is reflected in the financial statements as !. i i ;..,. which amortizes the cost of an asset
over its expected useful life.

Changes in total net assets as I1- .,!; 1 on the Statements of Net Assets are based on the activity
1.- .. ni-1 in the Statements of Revenues, iI..;'"-n and Changes in Net Assets. The ',po--- of the
Statements of 'I,-' ...1 ... i.- I and Changes in Net Assets is to present the revenues received by the
Association, **"' i'.;" and I'I" 1 il-,-I and the l.' l r.-c -. .,i.1 by the Association, operating and
S:iL Ij ..i;. and any other revenues, expenses, gains and losses received or spent by Ih. Association.

In general, operating revenues are received for i"'- 'Wi-,. goods and services to the Association's various
customers and constituencies. C.,. I l-. i .... are those expenses .:,i I to acquire or ,.. ,Ir* goods
and services r ;i1 .1 in return for the l'." '.'iii- revenues, and to carry out the mission of the Association.
T1,o,.r. i;",-. revenues are revenues received for which goods or services are not provided. Capital
i. :I.iIii are considered neither operating nor iir1... [ i i, and are J, ...1 after "Income before
*.11. ii.,i .1 '. Contributions to the University of i,: 1.. include unrestricted gifts for the academic
mission of the University, contributions for designated ii.- and costs contributed by the Association
for UF ... -., i








Ui i1l -'ERSITY 1. TIC ASSOCI ,i '1 .' INC.
MANAGEMENT'S ir -' 1 I ,I N AND I :,
.JUI ::, ', 2005 Al 2004
((f ''..., ,, )


Condensed .. of Revenues, .. .and
Changes in Net Assets (thousands of dollars)


Increase Percent
2004 (decrease) change


Operating revenues:
Football
Men's basketball
Other sports
Auxiliaries
Other operating revenues


$ 41,487 $
5,629
703
11,729
8.156


41,242 245
5,213 416
519 184
11,544 185
6.424 1,732


0.59%
7.98%
35.45%
1.60%
26.96%


SV'.l!' I
Increase
2003 (decrease)


35,021
5,172
573
11,021
5.227


6,221
41
(54)
523
1.197


Total operating revenues


67,704 64,942


2.762


4.25% 57,014


7,928 13.91%


Nonoperating revenues:
Student fees
Investment income, net
Sales taxes retained
Other nonoperating revenues


Total nonoperating
revenues


Total revenues

Operating expenses:
Team expenses
Scholarships and support services
General and administrative
Auxiliaries
Depreciation and amortization


Total operating expenses


Nonoperating expenses


Total expenses


Capital contributions from Gator
Boosters and others
Contribution to University of Florida


Increase in net assets

Net assets, end of year


2,417
3,260
884
452


7,013


74,717


26,643
14,074
16,944
6,066
5,766

69,493

2,213

71,706


2,638
(1775)


3,874


$ 74,315 $


2,454
3,785
812
452


7,503


72,445


22,643
12,856
15,504
5,793
5,234

62,030


2,055

64,085


3,252
(2.9321


(37) (1.51)%
(525) (13.87)%
72 8.87%
0 0.00%


(490) (6.53)%,


2,272


4,000
1,218
1,440
273
532


3.14%0


17.67%
9.47%,
9.29%
4.71%
10.16%


7,463 12.03%


158


68
2,045
(197)
(320)


5,907

62,921


21,609
12,323
16,138
5,726
4,169

59,965


9,524


1,034
533
(634)
67
1.065


2,065


2.85%
117.53%
(19.52)%
(41.45)'%


27.02%"

15.14%


4.79%
4.33%
(3.93)%
1.17%
25.55%


3.44%


7.69% 2,166


7,621 11.89%o


(614)
1,157


(18.88)%
(39.46)%


62,131


4,926
(1,800)


8,680 (4,806) (55.37)%


70441


3,874


5.50% $ 61,761


(1L1) (5.12)%

1,954 3.14%


(1,674) (33.98)%
(1,132) 62.89%

4,764 121.65%

8,680 14.05%


* The Condensed Statements of -.* n-,. I .. and ( i 'i:: in Net Asset ...ni i I,
consecutive years with an increase in Net Assets at the end of each year.

* Football revenues increased by '.. ,.i1lr in 2004 due to the sale of ,.',iI .... :i luxury seating in
the 6 .. 1.:.11 stadium and a ... i .,- i... I increase for the existing luxury seating areas.

* Men's basketball revenue increased in 2005 due to a ticket price increase.

* Other !i.. revenue increased in 2005 due to hosting the NCAA Men's :Illi i -,., &
% ''1'' i ;, l


Percent
change


17.76%
0.79%
(9.42)%
4.75%
22.90%


A 14 11:1! .. 1-11 -1







,1111 .3 *, i ;i ... i : N ,INC.
1 II '. ', ', ... ; N I I' .1.Y S IS
JUNE 30, 2005 AND


In 2005, other operating revenues increased by $1.7 million as result of increased ... l.i;.
revenue and the sale of aircraft.

Investment income decreased in 2005 by '. i ..:. *, i and increased in ,,. by $2 million due
to investment performance fluctuations.

-' i.. taxes retained increased in 2005 due to increases in the tax rate and home game ticket
revenue.

SOperating expenses increased by $7.5 million in 2005. The $4 million increase in team expenses
was ... .iI attributable to the costs associated with the 1 4i, i. ii1 staff transition, l in.
increases were the result of increased costs for preseason, i .. and training table meals and
in-state and out-of-state tuition. Administrative and ,,..i. : ..... increased due to national
and local market salary .JiI, ,,i. -.,, the ..... ,'. of a one-time bonus for all employees as
,.!.. *' I by the State legislature and the related ;,. i ;.... and p,..,.i taxes. Additionally,
maintenance costs increased due to hurricanes, expiration of new construction warranties in
football stadium -,,. ;,.. areas and continued i. I.' to the concrete structure of the football
stadium bowl.

SIn 2004, .... ,ii., -i .--. increased by $2 million. A major portion of the increase is
.,in ii .Il. to increased depreciation ,' ri' i i., from the. ia:,!1.-l.;., and usage of the $55
million :-. i..ii stadium expansion and increased team expenses due to increases in travel costs
and J ., .. ,i of coaches' longevity supplements.

Capital contributions are ii... gifts designated by the donors for facility construction,
renovations and *in1i..: ii .i 1 ..ii i I .i ,,i, in 2005 totaled $2.6 million and
included $460 di i n. ,,i for the basketball r. i.- 1 : ,:.,, $230 thousand for the football 1 f.ii,'
,:,.- ;- .. $130 i' ......: for the athletic office renovation, $480 thousand for the naming of the
track and soccer stadium, $300 1., on ,:1 for the -i.: i, : ii. field turf ri.." i and $1 million
for the purchase of a ::. King Air airplane. In 2004, i,.i !, .I ,i l...I of $3.2 million
included $1.2 million for dI. i.i i. i. n .1. i facility, $1.2 million designated for the Lemerand
Center renovation, $350 thousand for a new learning lab in the student life ,' $200 ,1 .::,1
for a new band ll-.in,- $120 r.- i :. 1 for the athletic office renovation and $113 thousand for
the naming of the track and soccer stadium.

Contributions to the University of Florida include unrestricted gifts for the academic mission of
the University, .....u ii;,. for designated .i .. and costs incurred by the Association for
UF I..:. i Total ... i; i..i, were $1.8 million in 2005 and $2.9 million in 2004. For further
1 i i1i on contributions to UF. see note 9 in the notes to the financial statements.








Ul I VERSITY AT: .'11 ,- li C ASSOCIATION, INC.
i IT C. r.F .T7- : ... Ill 1 IN !I ANAL'....,
JUNE 30, -i .AND : .
(Continued)





REVENUE 2004-2005




Nonoperating Revenue
9%






1% .




















REVENUE 2003-2004




.. ..i .. Revenue
10%

Other Revenue
955%














Other Sports I
1% 16%



Auxiliaries'
16%
16% ":


Men's Basketball
7%








U 1 iI ;1 .-. I ii li 1 ,..;. ? i '. .' -., .C A l ,,- j1, 1 V
1-I NAGEM ENT'S T.-:,- ..... iN i. TTi, .I A I ';
JUNE 30, ':Ii .AND il', -
(Continued)



EXP ENSES 2004-2005


Depreciation
8%
Auxiliaries
8%

Nonopcrating Expenses ..
3%

Ij


General & Admin
24%


-

.





Support Services
11%


Football Team
18%




Men's Baskeball Team
5%




SOther Sports Teams
14%




Scholarships
9%


EXPENSES 2003-2004


Depreciation
Auxiliaries 3%
8% ,


Nonoperating Expenses
9%


1 i


'1


.~'. ~


Football Team
14%


Men's Basketball Team
6%





Other Sports Teams
15%


General & Admii'.
25%


odlolarships
9%


Support Services
11%


- 10-







Li ,-'ERSITY! liT !f I-.TIC. I.-. I--,, INC.
I ,NAAeI.:F iiNT'S DISC I :':I, N AND'T -, ,T
JUL i' ,'. 'I l AND 2004
(Continued)





The final statements presented include the Statements of Cash Flows. The ;"'i purpose of the
Statements of Cash Flows is to provide relevant information about the cash receipts and cash payments of
the Association during the years shown. The statements classify cash receipts and cash i ir. ,i as they
result from ..--i. N, .i. .i. 1 liI- i nI,.. ;' .-, capital and related -ii-.; iir or investing activities. The first
section, cash flows from .1 i ii, activities, *.... .,ni the cash effects of transactions and other events that
enter into the determination of the Association's ... ii-, income. The second section, cash flows from
11 .j ~I financing activities, shows the cash received and spent for .n i,!--; I i.'.l. .,,,lE,. i;,. and
I.. I;i 1! financing ..1.. .. and includes .. i,, ,rl.wI ..,,. to and from UF and the State of Florida. The
next section, cash flows from capital and related financing activities, r.1. information about cash
used for the acquisition and construction of ", .1 and related items and cash received from contributions
.[.. ..1i designated for capital .*.Iu,.. The fourth section, cash flows from investing activities,
details the I.! 1. .... ... and interest received from .... l'.- activities. The final section reconciles
the net cash provided by ; I ii6, ,-. activities to the (-..i.,lli', income reflected on the Statements of
.... ,.- .... and Changes in Net Assets.

Condensed Summary of Cash Flows (thousands of dollars)
Increase Percent Increase Percent
2005 2004 (decrease) change 2003 (decrease) ...

Cash flows from:
Operating activities $ 1,877 $ 6,408 (4,531) (70.71)% $ 11,985 (5,577) (46.53)%
Noncapital financing activities 2,031 817 1,214 148.59% 2,381 (1,564) (65.69)%
Capital & related financing activities (6,938) (10,603) 3,665 (34.57)% (41,580) 30,977 (74.50)%
Investing activities (5,593)_ (2,11) (3,482) 164.95% 36,513 (38,624) (105.78)%
Net change in cash and cash equiv (8,623) (5,489) (3,134) 57.10% 9,299 (14,788) (159.03)%
Cash and cash equivalents, end of year $ 4,380 $ 13,003 (8,623) (66.32)% $ 18,492 (5,489) (29.68)%






Cash i -. from ...... ,,. activities decreased by i million in 2005 and $5.6 .,,ii;..., in 2004
due to increased cash i..... for .Il. 1 ~-;. and increased cash payments to .r,.1. i and
employees.

Cash !... '1di 1 by I,.i., Fi 'II financing activities increased by $1.2 .:i .( in 2005 and by $2.4
million in 2004 due to fluctuations in cash ini ...i. J to the University of Florida.

S Cash used in capital and related financing activities decreased by $3.7 million in 2005 and by
$30.1 .n,.I ..r in 2004 due to the ...., 11. ; I. of the J!,..1i i stadium i. '", project.

S Cash used in investing activities increased in 2005 and '" due to a reduction in cash received
from -rl. sales and maturities of investment securities.






: 1 II 'ERSITY ATHL i ,' .V! W l,.. T -
:iF ,`1 -rr ,NT'S l"! ii-'f- ; !if., r: iYSIS
JUi 1i 30, :' Ii 2004
(Continued)



Capital Asset and 1 ...- i .' .,.,. .

A major renovation and expansion of the west side of Ben Hill (. ;Iii, Stadium was completed in August,
2003. The l'. i ": was started in May, 2001. The .... included a new club level, the i< I, I,;.... .
Club, and additional suites as well as I..., 1.. and renovated Bull Gator, .'. and l. ,i ni's decks.
The total cost of the football stadium .. ii was approximately $55 million of which $5 million is
being funded from private ....ii i.I:- and i. .) million from the 2001 bond issue.

In October, 2001, the Association issued $57.4 million in tax-exempt revenue bonds. Proceeds of the
bond issue were used to retire the < Ii L .;1',I 1994 Capital Improvement "- -. i..i. bonds and to pay costs
associated with bond issuance and to fund a -, ...i;, of the new basketball facility. The remaining
,. were used for the football : 1 .ii .,., ;,. F. .. from the I .m1i '"e Club level and
!..i.. .... suites, which had already been sold, was $5.5 million per year which exceeds the estimated
debt service on the 2001 bonds. A total of $56 million and $56.7 million was .i..i .iini.h: at June 30, 2005
and I!Ii,' .'' [r '.

The 1990 tax-exempt revenue bonds remain i .. :rhli, ($20.4 million at June30, 2005 and
$21.2 i,,rFi-.. at June 30, 2004). The Association's total long term debt as of June 30, ',i ; and 2004,
was $76.4 million and $77.9 million, ... ii. I- The bonds are secured by the gross revenues of the
Association and backed by an irrevocable letter of credit as collateral for their !"., kij'" The bond
covenants include minimum ,'.1i' *. r,. for net revenues and I. irhij These requirements were met in
2005 and 2004.

On Ii IL, 11; 9, 2005, the Association's Board of Directors .Ili ..: the issuance of up to '.1 1,000,000
of revenue bonds for the construction of ;. I I-. i ; and the expansion of McKethan Stadium at Perry
Field, the construction of a new football equipment storage i. ..'i., .. i 11i .i.,,..,.J room, and the
renovation and :lr.!. ii to the Lemerand Athletic Center. The closing on the new bond issue of
$10,000,000 in revenue bonds is scheduled for September 1, ';i:.

For .i.livI-ii ,i information on Capital Assets and Long Term ( :i:;.,. .i.r see notes 5 and 6 in the notes to
the i In, i .1 statements.

Economic Outlook

Operating revenues are expected to increase in fiscal year 2005-2006 due to ,.iI. .I increases for
existing luxury seating areas, ...liin!,i, I sales in the Champions Club and i..-.i Gator Zone seating areas
and increased ., I fees for renewed and new agreements. r I,. additional revenue will allow the
Association to continue to *. ,.. its i..... .,, at the highest level, focusing on student -i i- teams,
coaches and staff and maintaining facilities of the highest I -!L .







UNIVERSITY i ,, ITIC ASSOCIAI I T T.,
i i .... Ii .,:.. INT 'S i :, 7 : ,,1 .' ,., *N !ri: A N A L .'.
1 :, ,i 30,2005 A I I, '
(Continued)





This financial narrative is designed to -- the reader with a general overview of the University
Athletic Association, Inc.'s finances and to show the Association's accountability for the money it
receives. If you have p.L. ; 1..i about this report or need additional financial information, contact the
Association's 1. i-r Office at Ben Hill Griffin i i.I, ,..i C-.I, il]l-, Fi,, 1 1-,.

University Athletic Association, Inc.
Attn: Assistant/ A i i. Director/i ', 1,,. r
PO Box 14485
C.,;, ;i1.- FL 32604-2485
(352) 375-4683







UNIVERSITY A ,' P:'.: .:TIC ASSOCIA : I I INC.
STATEMENTS OF NET A 11
iI I,: 30, 2005 AND 2004




2005
ASSETS


Current assets
Cash and cash equivalents
Short-term investments
Accounts receivable, net
I . ( 1 I,
Prepaid expenses and other current assets
Notes receivable current portion
Agency funds
Total current assets


Noncurrent assets
Assets held by the University of Florida Foundation, Inc.
Investments
Unamortized bond costs
Other assets
Capital assets, net of accumulated depreciation
Total noncurrent assets

Total assets


$ 4,379,899
27,183,725
8,763,790
676,004
2,578,217


43,581,635


21,221
31,136,549
473,619
150,000
125,358,075
157,139,464

200,721,099


$ 13,003,057
20,613,428
3,198,516
512,560
2,648,725
42,560
129,460
40,148,306


462,237
28,856,447
473,018
215,000
124,001,818
154,008,520

194,156,826


1 1 i i1 : ,1 '


Current I ;.,,,,i. *
Accounts payable and accrued expenses
Accrued compensated absences
Long-term debt current, i. ii ..
1 ; C i! revenues current portion
Agency funds payable
Total current liabilities

,. .. .. liabilities
Longevity incentive i ..1.1-
Deferred revenues
Long-term debt
Total noncurrent liabilities


Total liabilities


I I I 1i :I


Net assets
Invested in capital assets, net of related debt
I ..: w...1i for other l..' m .
Unrestricted
Total net assets


49,463,561
14,727
24,836,364
$ 74,314,652


46,571,711
353,952
23,515,259
$ 70,440,922


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


2004


7,601,920

1, ,1 '
39,072,457

49,855,060


363,694
1,272,693
74,915,000
.. 1 i 1,387


6,129,622
1,497,978
1,525,000
35,290,288
129,460
44,572,348


568,919
2,164,637
76,410,000
79,143,556


123,715,904


126,406,447







UNIVERSITY ATHLETIC : -i 1 i 1i INC.
STATEMENTS OF REVr, I ,.! i, ', '.. I !'_..:.-: AND CHA '- I IN NET .. i
FOR THE Yl' !if 1 i .1 ; JC I .I', 30, i'1-: AND 2004


Si!, revenues
Football
Men's basketball
Other sports
Auxiliaries
Other
Total operating revenues


..' I. I.. team expenses
Men's '. I i. ;i team expenses
Other sports team 1. .
Scholarships
Support services
General and administrative
Auxiliaries
Depreciation and amortization
Total operating expenses


-I: 1. I 1"1 .- income (loss)


-I -l1...,,,,i : ,I1 .w revenues (expenses)
Student fees
Investment income, net
Sales taxes retained
Interest on capital asset related debt
Other nonoperating revenues
Net ii .... .: .; revenues


Incom e 1' ".*. i i, ,i, i',,,,. n, ;


S. contributions from .. Boosters, Inc. and others


Contributions to the : i:

Increase in net assets

Net assets, 1 .. ..i. _, of year


. o f l11 ., .ii-


$ 41,487,149
., ., 720
703,345
11, ',066
8,155,431
67,703,711


12,972,305
3,564,438
10,107,134
6,522,916
7,550,647
16,943,603
6,065,636
5,765,843
69,492,522

(1,788,811)


2,417,063
3,259,608
884,459
(2,213,360)
451,805
4,799,575

3,010,764

2,637,838

(1,774,872)

3,873,730

70,440,922


$ 41,241,530
5,213,454
519,284
11,544,020
6,424,051
6r '!' :."


9,079,638
3,753,904
9,809,350
5,936,963
6,91:;,
15,503,629
5,79, "
5,234,341
62,029,886

2,912,453


2,453,896
3,785,091
812,067
(- ,- -., '19)
451,805
5,447,640

8,360,093

3,251,651


(2,931,769)

8,679,975

61,760,947


Net assets, end of year


$ 74,314,652


$ 70,440,922


The .. .. i. notes to financial statements
are an iii. .1 part of' statements.






UNIVERSITY A 1 .:. i, -... :1 1:ON, 11 I
STATF_ i-T -, OF CASH F '
FOR THE ENDED JU: if 30, ,,I AND 2004



2005


C ash : .' .... ...
i ...-..... from Gator Boosters, Inc.
'r ;.. from ticket holders and others
;r from the 11.. .. Conference
Receipts from rights, royalties, and i, ...
Other receipts
I .,, .- .... to suppliers and others
i".,, in to employees
i .. I ,. for scholarships
Net cash provided by i '1 :activities

C ash i~1'. from .i I.1, ...'.i ',i, ,., ,, -.l
Statutory distributions from the University of Florida
and the State of Florida
Contributions to the University of Florida
Net cash provided by noncapital financing activities

Cash :!:.- from capital and related rin-,.l .... l; ... i; ,:.
Purchase of capital assets
Capital contributions from Gator I'... Inc.
Capital contributions from others
T, i. i, .*i paid on bonds
Interest paid on bonds
I I- *.- I bond remarketing fee
I' ... i from sale of capital assets
Net cash used in capital and related financing activities

Cash flows from investing :.' 1; 1,,,, ,
.* 1! i of investment securities
Proceeds from sale and maturities of investment securities
Interest and dividends received
Net cash used in investing activities


$ 20,045,128
20,948,800
10,911,671
9,920,732
649,374
(29,058,050)
(25,059,504)
(6,481,711)
1,876,440


3,753,327
(1,722,003)
2,031,324


(7,211,319)
1,676,894
1,065,000
(1,525,000)
(2,150,405)
(49,962)
1,256,627
(6,938,165)


(46,708,867)
39,616,..;'.
1,499,248
(5,592,757)


$ 22,344,499
20,834,' '
10,589,410
8,544,384
379. 1
(30,828,166)
(19,943,188)
(5,513,813)
6,407,593



3,717,768
(2,900,239)
817,529


(11,606,037)
3,140,834
1,325,000
(1,365,000)
(2,060,918)
(50,173)
13,097
(10,603,197)


(49,885,120)
46,767,000
1,0071 -
(2,110,854)


Net decrease in cash and cash equivalents

Cash and cash '.1 .1 r ; i- ; H.. l '..i: of year

Cash and cash equivalents, end of year


$ 4,379,899 $ 13,003,057


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


-16-


(8,623,158)

I '. l :; 7


(5,488,929)

18,491,986


2004







Li 1 'ERSITY li ..' '' I. i! N, INC.
I EVENTSTS OF CASH FLOWS
FOR THE, iI i II. "JUNE 30, -I1; AND "
0 ,, :, '


2004


S... .'.i .II. i' of ii, I i. I11.". income e i, to net cash
..... 1 b y .i:, : i, i i.
C!"- i. :;..- income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
1 "... .... and amortization
ii: .. ,. of notes receivable
Loss (-0..i,') on 1: ..1 of capital assets
( .' 11il'- in assets and liabilities:
Accounts receivable
Inventories
". .II ,. .,- In '. and other current assets
Agency funds
Assets held by the University of Florida
Foundation, Inc.
Accounts payable and accrued expenses
Accrued compensated absences
Deferred revenues
Agency funds .:. 11- -
Longevity incentive payable
Net cash provided by operating activities


$ (1,788,811) $ 2,912,453


5,765,843
42,560
(1,167,408)

(5,519,677)
(163,444)
80,500
129,460

441,016
2,070,720
187,705
2,851,169
(129,460)
(923,733)
$ 1,876,440 $


1:, ', ...' '. ii. .1, of noncash i
I ..... in investments and I i,- *. i, incentive payable
to .. i ..II on employee directed incentive balances $ (45,080) $
























The accompanying notes to I. ... I statements
are an i ,i :i. part of these statements.


5,234,341
41,464
250

(761,416)
179,531
(151,889)
(64,440)

11,453
(1,754 1-:)
302,452
151,284
64,440
241,724
6,407,593



(I :






UNIVERSITY I C TI ASSOCI'. -i w i. I i,
,I *r ,,. ,TO i I NCIAL STATEMENTS
J 'L 30, H' T II




The following is a summary of the more significant accounting ;I ..*. of the University / i.1- .
Association, Inc. (the Association), which .. significant elements of the : 0 1lr 1... basic financial
statements.

(a) .... ... '.., The Association is a not-for-profit entity organized in 1929 for the
..i"t"v of conducting various intercollegiate ,i.i programs for and on behalf of the University
of Florida. The Association operates for the service and convenience of the University of Florida
and is a direct ..i...m organization and ',.,i, ..i unit (for accounting 11 i. -. only) of the
University I., i: i, ,

(b) I 1. i... focus, basis of ', i .:. .,i., and 1, 1. i.1 state ent :i .. The
financial statements of the Association have been ".-"r:,.. ,1 using the economic resources
measurement focus and the accrual basis of accounting. Under this i, .. revenues are recorded
when earned and expenses are recognized when they are incurred.

The Association follows all pronouncements of the Governmental Accounting Standards '. i.,
and has elected not to follow Financial Accounting '' i, ii., .i Board '.i. 'ii. *in .',:r, issued after
November 30, 1989.

The Association .. ,j! .i. operating revenues and .' .*', from nonoperating items. Op 0i,.
revenues and -. '-. for the Association are those that result from the ., i **, of the University
of Florida's :.... al ,?1. II. athletic ~,.--, in It also includes all revenue and expenses not related
to ..;ii l, and related ,in. ? ~1a noncapital fTi, ir.-iii or investing activities. As .. : ..l by GASB
Statement No. 34, Basic Financial Statements and -I i' ,- Discussion and Analysis for
State and Local Governments,; ,w. ii. ,r-. i,. to .... .... i endowments are not considered ... i :;,,
revenues and are reported after i a.... iiil.-. revenues and expenses in the '......... ,' i ,,.
statements of revenues, !- and changes in net assets.

(c) Cash and cash equivalents-Cash and cash equivalents include cash in banks and money
market funds available for immediate use.

(d) Accounts receivable-Accounts receivable are stated at the amount management expects to
collect from balances at year-end. Based on .1, i.,'L I .1i'; assessment of the credit history with
organizations and individuals having .. .1 iPii.,iL balances and current i ii.-i !,i, with them, it
has concluded that realization losses on balances ,'i iii- .:' at year-end will be immaterial. The
Association has no policy requiring collateral or other security to 1.1,. ,ia its accounts receivable.

(e) Inventories--nventories consist of items held for sale at the Gator -.t I .:- golf course
pro shop and snack bar. : : i,'.hi items at the Gator ", ; I., and the golf pro shop are recorded
at the lower of cost or market using the average cost method. All other inventory items are recorded
at the lower of cost or market, as determined by using the first-in, first-out (FIFO) r I ;1m.. i


-18-







I1, 1i 'ERSITY I 11 1 4 :: :1 N,
,,:!' .FIN I- STATEMENTS
INE 30, I,..' T i .,

C, 3, (C .I..., ', I)


(f) Capital assets-Capital assets i--.. I. -1 with an original cost of $500 or more are recorded at
cost and depreciated utilizing the straight-line .4il.-1. over the estimated useful lives of assets
( .. ..' ; 5 years for permanent equipment and 10 to 15 years for* j.i..l iY,,.* .. IIi .. except for
improvements to :.I,1II.I. which range from 50 to 60 years). Costs to maintain or i .i:I these
assets are expensed as incurred.

(g) Assets held by the University of Florida I,..ir. ai,,.,.. Inc.-Assets held by the University of
Florida ..i i... Inc. .i Foundation) consist of .... .1I investments and real estate.
Substantially all investments are stated at fair value.

(h) 1, ,.:.' The Association acts as an agent for the control and .-, i In, ,n of cash from
the sale of Gator Growl tickets for the University of1, ,i. id Such amounts are not included in the
statements of revenues, expenses and changes in net assets.

(i) L" ,....... .. .1 bond costs-Unamortized bond costs consist of t"' '' bond issuance costs.
These costs are being amortized utilizing the 1 n ;'n ir- method over the term of the bonds
(30 years for both the 1990 & 2001 bonds).

(j) Notes receivable- i- balances consist of loans to various coaches and employees as
!". F i' I in their employment contracts. The loan amounts are amortized based upon forgiveness
schedules relating to the .i. '.''s continued .. In..: I. i as defined in the respective employment
contracts.

(k) Accrued compensated absences---Fi .1-'. ,.., -. are entitled to vacation and sick leave
with pay. r,. l.. .. are not limited in the amount of annual and sick leave accrued during the
fiscal year. For annual leave, however, only a maximum of 352 hours can be carried forward from
one fiscal year to the next or :..;i I upon termination provided the employee has -..i -1...', I six
months of continuous service. Any amounts accrued over the maximums convert to sick leave at
the end of the year on an hour for hour basis. Additionally, sick leave amounts ,.i.1 upon
termination are i.i;-.. to the lesser of 480 hours or 1/4 of the employee's sick leave balances for
ir.. employees who have completed ten years of continuous service. Vacation pay and sick leave
payments are I .. as earned by the i ,l. .

(1) !'-I ; revenues-Current deferred revenues consist of advance sales of 1.-il.11 tickets,
related ih'Il ,I .. .. i -i-iii l ..., and miscellaneous other unearned fees received. The deferred
items are recognized as revenue when the related football games are 'I., ,1 when the related
Si,.f .1 ,. r are incurred, and when the service is ... .; n.. ; or event occurs for which
, ii.,.~r i fees were received.

Additionally, deferred revenues included in other i. consist of booster ,, i. n.. i and
advance royalty and sponsorship ....r : The i, and ..i.. li amounts are recognized
over the life of the .,i. ., :. while the booster ,. 'p.' ',i l will be recognized in the applicable
, .**, season.







UJ'- i 'ERSITY ATHLETIC ,. -- il i I ,1 1
N :". TO FIN. i J i, EVENTSTS
JUNE30, *r-, / i 2004


( 1 ) ', 'i ,',:", .. .. !.. .. n ',. .., -... (C o n tin u ed )

(m) Longevity ;.. 11:1 payable-' balances represent amounts due to various coaches
and employees as specified in their 1,. 1:i. contracts. Such amounts are accrued based upon
schedules included in the respective employment contracts. In some circumstances, the coach or
.. m, ...'s employment contract may .. pi;r the Association to make *. .I *i ....' ;:1. into an
employee directed investment account until such time as the coach or employee has reached the
stay ,, f,. specified in 1:h. i contract. These investment balances would transfer to the coach or
..i.0i.. : at the end of the stay ,1;,I.1 and are included in investments in the : .*,, ,1, in ;
statements of net assets. In other circumstances, the Association is .,'i i:,. i to pay certain amounts
to the coach or .:, ,1,, which are not -1 i. until the end of the stay period. The Association
accrues for these amounts ratably over ,r... contract period. No payments are made to the coach or
employee until they have reached the stay ;.. ..... : i, ;5. 1 in their contract.

(n) Net assets-Net assets are classified and .r iP I. in three, i.. i.-'li' "1i.

SInvested in i.~.;i! assets, net of related debt consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any debt that is attributable to those
assets.
i :ted consists of assets that have constraints placed upon their use either by external
donors or ii .i or through laws, regulations or constraints imposed by law li;11.,.ii
constitutional i,..i i '.i .or enabling legislation, reduced by any liabilities to be paid from
these assets.
Unrestricted consists of net assets that do not meet the definition of "restricted" or
i in. ,.;1, assets, net of related debt."

When both restricted and unrestricted net assets are '. i.i.. for use, it is the Association's policy
to use restricted resources first, then unrestricted resources as they are needed.

(o) Restricted net assets-Restricted net assets r, I i funds held by the I I. ,i..,1.I. which
have been restricted as to their use by donors.

(p) :- .... :1: .ii ,, of expenses-- -- i costs of providing various ..... and il, ,
activities have been summarized by .:I; ',.. i,- in the .- ... -n,...,-. i. statements of revenues,
expenses, and changes in net assets. However, certain costs categorized as Support Services and
General and Administrative are not i.. -ldi identifiable with men's and women's programs and
are not ..! .,'; As a result, no .i. I 1 .1r E:. between men's and women's ... ,i has been made
w within these .- i 1 i i.. ,

(q) Income taxes-The Association is generally exempt from Federal income taxes under the
i. I' d; .I of Section 501(c)(3) of the .i.i. I -n Code.

(r) In-kind coi.'-.. ...... ii....-- i '1: in I,. of materials and services are recorded at their fair market
value at the date of donation.

(s) I1 1 !..' :,. ., I, order to facilitate the .....i ., .. of financial data, certain June 30,
2004 account balances have been .. i, i;. i to conform to the current .i .. ,. ..;i" format.
S reclassifications had no effect on net assets.






LI 'ERSITY a .,i1 i .I 11. i ASSOCIA .ii I I, P'!

JU I .1 30, :"! I :


(2)

A. Cash and :. A, L .

The amounts d ...- 1 as cash and cash equivalents include cash on hand, cash in bank demand accounts,
cash held at the University of i l'..- I and money market funds. Cash and cash '~' .nc at June 30,
2005 and 2004, were as follows:

2004

Money market funds $ 2, ..-;'15 $ 11,886,934
Cash in bank demand accounts (1,742,223) (1,220,114)
Cash held at the University of Florida 3,285,657 2,434,297
Cash on hand 70,150 31,400
Less: Agency cash (129,460)
Cash and cash equivalents $ 4,379,899 $ 13,003,057

Cash in bank demand accounts is held in a regional bank. Bank account balances for these bank demand
accounts as of June 30, 2005 and 2004, were $1,234,408 and ,.1,734,668, respectively. D. -;. are
Pi.w .il ,,n.i-,..li -.I and are insured up to $100,000 by the Federal '.1 ... Insurance Corporation. Money
market funds are uninsured and collateralized by securities held by the institution, not in the Association's
name. For -.. I"* ii custodial credit risk is the risk that in the event of a bank failure, the Association's
deposits may not be returned to it. The Association does not have a policy for custodial credit risk.

B. Investments:

The Association follows the .. i r. of GASB Statement No. 31 Accounting and ,.... .;' Reporting
for Certain Investments and for ... !:.! Investment Pools. This statement requires that government
entities report investments at fair value, except that money market investments that have a remaining
maturity at the time of purchase of one year or less, may be ., ;.,, at amortized cost ,.: i;. i. that the
fair value of those investments is not significantly affected by the impairment of .r .1i standing of the
issuer or by other '. i1, For purposes of GA I Statement No. 31, money market investments are
defined as short-term, highly 1,11,i1 debt instruments including commercial paper, banker's .i. i.,'
and U.S. Treasury and .. -obligations.

' 'it-term investments are .. 1 of mutual funds and an investment account with the State of
Florida Division of Treasury and are -,- i., -i1 at fair value. Other investments include equity securities
and ,'.I '. !4 mutual fund investments that are reported at fair value as determined by quoted market
prices or the mutual fund's current share : 1 Ti1. classification of investments between short-term and
long-term is based on management's .,'; ; 1-I cash flow needs. However, the needs of the organization
may .. -;'ii.- the sale or retention of investment balances which differ from the classification .. I'',-r *i in
the .i p "1 .'n ;i --. statements of net assets.

The Association's corporate investment policy divides the Association's assets into two portfolios, the
long-term portfolio and the short-term ... i r [.;, The policy states that the short-term portfolio invests in
cash and equivalents and the long-term .,. I.i, invests in a ;i i .: "i! of commingled and/or
mutual funds in the following classes: i, i, Large Cap :'.:,; 1' ,.* i .iI C., rF'ii
International ii ',, and Fixed Income.







UNIVERSITY I.11 'Ii T CIATION, INC.
: l : ; I i INCIAL STA I. I ITS
JUI '1 30, 2005 AND ,.'



(2) I; and Investments: (Continued)

As of June 30, 2005 and 2004, the Association had the 1. i..... investments:


Ii -1. i term investments:
Investment account held with the State of 1. !., Division
of Treasury
1ii 'l,,, ,, 4i .; invest ents
Subtotal


Investments:
1J.... equity mutual funds
International equity mutual funds
Debt securities mutual fund
TFI.! .... I directed investments


Total investments


2004


$ 27,183,725 $ 20,000,000
613,428
27,183,725 20,613,428


16,852,456 15,636,654
4,867,260 4,156,844
9,148,139 8,494,030
268,694 568,919
31,136,549 28,856,447
$ 5 ,. 'i, 74 $ 49,469,875


The Association's short term investments includes a ... ... I investment with the State of I r. il T -; i ....
of Treasury's Treasury Investment Pool. 1 I-, Treasury investment Pool is rated by ''4 -ilr ii and !'. .
The current rating is AA-f. The effective weighted average duration to maturity of the Treasury
Investment Pool is 2.22 years at June 30, 2005.

The Association's long term investments include an investment in a bond mutual fund, the PIMCO Total
Return Fund Institutional Class. As of June 30, 2005, this fund is unrated, however, the underlying
investments in this fund had an average 1 quality rating of AAA and a weighted average duration to
maturity of 4.05 years.

The Association does not have a policy for credit risk or interest rate risk associated with its investments.


(3) a a J 3, 2 a 2 i.. .

Accounts receivable at June 30, 2005 and 2004, consist of the i.l ,:


2004


Ticket accounts receivable
Due from Gator I i... i- ., Inc.
Due from SEC and T'AA
Advertising and .,.I ..i' ..,
Other receivables
Total accounts receivable
Less ,ii- .., for doubtful accounts
Total accounts receivable, net


$ 2,159,359
5,763,805
177,187
144,183
592,612
8,837,146
(73,356)
$ 8,763,790


$ 683,536
960,353
110,105
901,547
611.- -
3,274,416
(75,900)
$ 3,198,516


-22-


-. 1, 4







i !i I: !Y ATHLETIC ASS. I TION,INC.
I '- i .. TO FIN TT -i STATElYr fI'.
JUNE '. 2005 .- Jl!



(4) payable and ac d e s c t of te Ii at June 3, 25 and 20, 0.

Accounts payable and accrued expenses consist of the i, .! II I, oLI at June 30, 2005 and 2004:


2004


Vendors
Salaries and benefits
Accrued interest
Gator T'. .. Inc.
Other
Total accounts .. i 1. and accrued *. .


$ 4,152,984
2,804,123
469,348
112,900
62,565
$ 7,601,920


$ 3,053,272
2,491,860
445,761
69,633
69,096
$ 6,129,622


(5) Ca ital Assets:

Capital asset i i ;; for the year ended June 30, 2005, was as follows:


Balance
Balance


*I I Il i (1


C..,.;il assets not being
S ,, ; ,i-.1. ,l
Land
Construction in .....
Total. .,P;i .1 assets not
being .1. i .- i ; ,1

C ii I0 assets being
, f,,, 1:,i, .1
Buildings and
I.'' .'. I 1I 1 i
: i.i. i,, .- and .,.,iup ,. 1
Leasehold IIIn ii i, ..
Total capital assets
being .I .. ;.,i 1

Less accumulated
depreciation for:
Buildings and
improvements
S,,inii Io- and l ;!T n. ;
Leasehold iI, rl ,,,,i i
Total accumulated


Total ,.:.;i1 assets
'... ,-. depreciated, net

C .' 1 assets, net


$ 567,039
1,899,668

2,466,707




5,843,381
17, .,',541
133,901,366

157,704


1,389,435
11,) '7
23,651,715


$
1,981,864 (2,296,032)

1,981,864 (2, ".. 1;2)


4,251,010
3,274,477


(1,135,157)


7,525,487 (1,135,157)


233,616
1,549,677
3 ,9 .-: .I


(1,045,938)


36,169,177 5,7, .. I (1,045,938)


121,535,111

$124,001,818


1, ,644


$ 567,039
1,585,500

2,152,539




5,843,381
21,07 -
137,17-1'i

164,094,618


1,623,051
11,631,766
27,634, i.

40,889,082


(89,219) 1 ': 36


$ 3,741,508 $ (' il) ;.. 5,35;. .


' ',4 ,, ,, i l ,
"1 i l, i l ., ,,








~N1, -^ FIN i, il ", ,N. :I. :!:l ,NTS
JUNE ',, 2005 AND 2004



(5) Capital Assets: (CG .. i. i)

C.,L 1 asset activity for the year ended June 30, '.",: !, was as '.,1


I-" ii: 1,


C i .;;,,1 assets not being
depreciated:
Land
Construction in *. ,
Total ...1 2! assets not
being depreciated

Capital assets being
depreciated:
.I ilIii and

I[ ,.'i0 and equipment
Leasehold improvements
Total capital assets
being ,' -:,, ;,. .' .-

Less accumulated
1I. 1 for:
4 i., and

!. mi,,. and ii,]11, n11

Total accumulated
depreciation

Total I. .:! 1 assets
being depreciated, net
C .:i I assets, net


$ 567,039
52,717,249


10,509,874


(61,327,455)


53,284,288 10,509,874 (61,327,455)


5,843,381
17,321,243
72,553,921


1,076,173
61,347,445


95,718,545 62,423,618


1,155,179
10,140,842
,: ;43

31,359,364


64,359,181
$117,; .,469


234,256
1,411,713
3,588,372

, !341


57,189,277
$ 67,699,151


(437,875)


$ 567,039
1,899,668

2,466,707





5,843,381
17,959,541
133,901,366


(437,875) 157,704,288


1,389,435
(424, ': 11,1 ', ,
23,651,715

(424,528) 36,169,177


(13,347)
$(61,340,802)


121,535,111
$124,001,818


At June 30, 2005, the Association has
projects .111 l .i :.. I '


com m itm ents to .... for ..liir .,. .. ...i.; i .,p ... .. il


24-


i i


T :, .,


Balance







L 4 'ERSITY A -. 1. .; ; : ..
NOTES I :- I .1 I ; :I i S'
JU IT IT'., I', .I 1 1."


,1 -I I, 'I 1 I.
i :1 I
; .. i ;


( 6 ) i. I ... ._ .

S, in long-term obligations for the year ended June 30, ." ., was as follows:

Amounts
Balance 11. ... Ba1l ,' Due Y I!ie .'a
Balance ,. 1 Balance -1, ', Year


Accrued ..i[," 1r 1
absences
Longevity incentive

'' revenues
Long-term debt
Total long-term
] l lI ,


$ 1,497,978 $ .. 9 $ (234,954) $ I..,? .


1,252,347
37,454,925
77, .5,000


1,033,355
39,414,150


(1,912,008)
(36,523,925)
(1,525,000)


373,694
40,345,150
76,410,000


$118,140,250 1 1, ,."70,164 $(40,195,887) $118,814,527


$ 1 ./,.?

10,000
39,072,457
1,495,000

$ ^:..-,140


( 'ih.1p< in long-term obligations for the year ended June 30, 2004, was as follows:


"i''i' I I Hi 'I,' | ., ;1]A


Amounts
1 1,, Due Within
; i' One Year


Accrued compensated
absences
Longevity incentive
I, I .! -
Deferred revenues
Long-term debt
Total long-term
liabilities


$ 1,416,911 $ 275,314 $ (194,247) $ 1,497,978


881,984
37,414,457
79,300,000


1,488, (1,118,059)
35,889,562 (3 -,094)
S (1,365,000)


1,252,347
37,454,925
77 .: 00


$119,013,352 '.. ,653,298 $(3:: '..,400) $118,140,250


$ 1,497,978

.,, .,428

1,525,000

$ 38,996,694


A. Long-term i': .;.,'

In 1. -I.I j' 1990, the Association issued $10,715,000 in tax-exempt revenue bonds. .'n 1 of
$10,559,000 were used to retire the I.. i .1..y, 1982 and 1985 .', oln.- : -n, i;,... and pay accrued
interest and costs associated with issuance. In December 1990, the Association issued an additional
$17 ,i, :' in tax-exempt revenue bonds. .* of the i -". ;i. 1990 issue were used to finance the
construction cost of .1.,. North End Zone, and pay accrued interest and costs associated with issuance.

In August 1994, an -I .1i -n.-. $5,000,000 in i.. 'I, i i revenue bonds was issued by the Association.
II ... i of the 1994 issuance were used to finance the construction of a volleyball i;-- gymnasium
and to renovate the .;,i'i ~., field house. :., I. the 1990 and 1994 -- ies bonds mature in the year 2020 and
are secured by the gross revenues of the Association. Interest is incurred on the bonds based :-r, ,. a daily
variable rate of interest. At June 30, '.. and 2004, the rate was 2.53% and 1.14%, respectively, for both
the 1990 and 1994 issues.


-25


.I hi I'H i






J l 1 :1 : ,-, i r Y A l i. ,' ,. ..!.. B, h ;' I "1 IP ,
NOTES TO FINANCIAL STATEMENT T'
Jt I I' 30, 2005 I .I '-


(6) :. i .. .i '- ..'i, :I ..... (C continued)

In '..il ,, 1999, the Association entered into an interest rate cap agreement (the rate agreement) with
.. ,1 i Trust Company which would cap the rate which the Association .. interest on the .* i. at a
total of 5% during the period s -- ir January 14, 1999 to January 20, 2004. The Association paid $150,000
for the instrument which hedged ".~;* uOni. of .,!r. ,i 1I. Prior to fiscal year i:1 the cost of the
instrument was being amortized utilizing the ,i i11,. method over the term of the agreement. ..I "
2003, the remainder of the unamortized costs associated with ili instrument were fully amortized as
management .. J. -... that no benefit would be derived from this rate agreement prior to its expiration
given the current rate environment.

In October 2001, the Association issued .',400,000 in tax-exempt revenue bonds. !'l.... -. of
$4,688,193 were used to retire the .-ri- I i,:.'1; 1994 C Isi.l Improvement Revenue ..,,..!. and pay costs
associated with issuance. The remaining t.... were used to finance the construction cost of the
Basketball ,.* .;. i-- i. io, and the s :.i '...i of Ben Hill Griffin, Jr. Stadium. Construction of the
Basketball 'i. ri. ',., ,I- was .~1 i .1 in 2002 and construction on the .ii ,,, was .... pl j.-i ? in
2004. Interest is incurred on the bonds based upon the following schedule:


June 30, 2005


*' h .' -,1 ,i I .,' i; h 1
Amount

$ 12,400,000
14,335,000
14,275,000
15,000,000
$ 56,010,000


Term


10/1/02
10/1/03
10/1/04
10/1/01


Interest ,. i 1i..
Rate Amount


10/1/05
10/1/08
10/1/09
10/1/06


2.20%
2.80%
3.00%
3.50%


$ 12,400,000
14,335,000
15,000,000
15,000,000
$ 56,735,000


June 30, 2004

Term


10/1/02
10/1/03
10/1/01
10/1/01


10/1/05
10/1/08
10/1/04
10/1/06


Debt service requirements at June 30, .nr were as follows:


'1',1 Ir' : I. r ..
" "1"1 I I. !"I Interest


1990 Revenue I:
" ,i u1!II 1p'" ii Interest


Year Ended June 30:
2006
2007
2008
2009
2010
2011-2015
2016- q
2021-2025
2026-2030
2031- .
Total


$ 695,000
765,000
735,000
710,000
790,000
3,935,000
3,- ",)00
14,! .100
20,645,000
9,540,000
$ 56,010,000


$ 1,614,723
1,592,970
1,571,364
11 1
1,528,114
7,296,935
6,744,071
5,513,977
2, ,' ,563
211,120
$ 30,413,358


800,000
900,000
1,000,000
1,000,000
1,100,000
6,600,000
9.000.000


$ 20,400,000


507,687
41., ;. 1
462,568
',268
410,914
1,590,106
613,525


$ 4,508,461


-26-


Interest
Rate


2.20%
2.80%
3.00%
3.50%






UNIVERSITY A ?i T;i .'.A CITATION, T-
I IOTES TO FIN, ; 'i il STATEMENTS
JUNE 30, i-.... .AND 2004


(6 ) .. .1.. .... ..I; 1.-" I .1 (C )

The Association is subject to certain general and financial covenants related to the Bond agreements (the
Agreements). The 1990 & 1994 bonds financial covenants -....i' ..1 the Association to generate net
revenues, as defined in the A-, .. i. : 1;i to at least the three year '. i1l:L average of the ,i..i '
.;, ,l, 1 and interest requirements.

With the issuance of the 2001 Bonds, the covenants changed for all three issues. One of the new financial
covenants r.-, ,i '. the Association to produce net revenues, as defined in the 2001 agreement, to the
!..i; i-.l and interest requirements of the bonds of greater than 1.1:1. The Association's ratio of net
revenues to ,.-;,,.J rp;. ;-1i and interest was 2.61 and 3.95 in 2005 and 2004, respectively.
Additionally, a new liquidity covenant requires the Association to maintain unrestricted cash, marketable
securities and investments in an amount greater than twenty-five : (iI .,l (25%) of its total indebtedness
measured at the end of the fiscal year. At June 30, 2005, the required amount of ;,iii' was
$19,102,500 and the actual amount was in excess of 1.. ',700,000. At June 30, 2004, the required amount
of i.i i I. was $19,483,750 and the actual amount was in excess of $62,400,000.

In conjunction with the / --ceements, the Association entered into an irrevocable letter of credit agreement
with the insurer of the bonds as collateral for their payment. Under the irrevocable letter of credit
agreement, the letter of credit is equal to the bonds' outstanding ,n:, ;t' .i. not to exceed $80,700,000,
plus an amount equal to 39 days of interest on the bonds' outstanding ir -i .-'! at a rate of 12%. The
balance on the letter of credit at June 30, 2005, was $77,403,330. The letter of credit expires on
October 15, 2009. The Association pays a fee in order to retain the letter of credit equal to 0.18% of the
,, imin i;.; letter of credit balance. The fee is paid in arrears on the first day of each quarterly period.

Additionally, on February 9, 2005, the Board of ,,-. -,1'' iv,,, : I the issuance of up to $11,000,000 of
revenue bonds for the construction of :ii" ...'n i and the i.'li .1 of McKethan ;I .. at Perry
Field, the construction of a new football equipment storage Ti. h' ii i, ,.li':, lii'!, room, and the
renovation and improvements to the Lemerand Athletic Center. The closing is scheduled for
:..- -i. .--. r 1 ,2005.

B ; I F, ,,

('I .- in current deferred revenues for June 30, 2005 and 2004, are as i .1 I



I :, .., beginning of year $ 35,290, ::. $ 34,177,721
Additions:
Advance football ticket sales 14,313,673 11,701,931
Unearned booster contributions 23,706,201 22,225,979
Unearned other income 1,052,583 1,659,015
Total L 39,072,457 35, .....25


Earned football revenue (11,701,931) (10,750,526)
Earned booster contributions (21,929,342) (22,067,608)
Earned other income (1,659,015) (1,656,224)
Total deductions (35,29( '" (34,474,358)
:., end of year $ 39,072,457 $ 35,290,288






UNIVERSITY ATHLETIC -. ; i ;,N, :i
I .TO FIN, I :IAL STATi '. I 11.
JUNE '1 :n 2 / i" 2004


(6 ) ,. h I; ,- ..,,, (C -., ; )

Changes in long term deferred revenues for June 30, *'l ; and 2004, are as follows:



Balance, beginning of year $ 2,164,637 $ 3,236,736
Additions:
Unearned booster contributions 341,693 i. '. ;7
Total i!. I,.. 341,693 302,637

Deductions:
I.-., ..-. contributions i. i ., to current (302,637) (413,454)
".. ., !I;;. recognized (160,000) (19", .')
Royalties recognized (771,000) (771,000)
Total deductions (1,233,637) (1,374,736)

I ..!.ii., end of year $ 1,27 $ 2,64,637

(7 ) I. :. .,.

In 1979, the Association : lr I.,.l' the University Athletic Association, Inc. i ii,... Money
Il"'ii i... ;I'e-, -i.,, Plan and Trust, a defined contribution .,.--i; ,, plan covering i ,.-,mii.1ii all ini lii,.
employees. Total pension .... i for the plan was $1,653,977 and $1,297,737 (net of forfeitures of
$211,264 and $152,593, .. .-:;..) for the years ended June30, 2005 and 2004, respectively.
( ', ,!,I.i .. are made by the Association to the -.i. n plan based on 12% of an .*'i,.i.- employee's
earnings. During the years ended June 30, .',l, and 2004, total :. i ;, it for employees covered under the
plan was $15,594,106 and $13,375,471, which represented approximately 69% and 78% of total payroll
for the years ended June 30, 2005 and 2004, respectively.



Gator T.'..* ,. Inc. receives .. ,,i.,n : the general :,,ifl- and remits the majority of 1i funds
(less their operating expenses) to the Association. Contributions of $23,277,639 and $25,374,167 were
recognized from Gator ,I ., Inc., for the years ended June 30, 2005 and 2004, respectively, and have
been included in the ...I..'ir, 1 .. statements of revenues, .- and changes in net assets.
Additionally, in -'r i, the Association contracted to provide accounting and '..' 1 .. .. I services to
Gator T'". I. The Association recognized contract revenue in the amount of I '.:e'i for the year
ended June 30, 2005.

Gator ,. : ., Inc. recognizes ..... ,l' m ,i r for amounts remitted to the Association in the year
in which such amounts are remitted. The Association, however, does not recognize these amounts as
revenue until the year in which the related athletic event is held or the year when the related I.l.I 1,
",ii are incurred. A reconciliation of contribution revenues from Gator I i., Inc. as recognized
in the :.. 'l,H.! r in,, statements of revenues, ;" and changes in net assets to .,, ii I,. *ni, I ,t -
as reflected in the financial statements of Gator t'. i.' Inc. for the years ended June 30, 2005 and
2004, is as .:li






UN ii r, ,.i:TY ATHLETIC A:' .- ** :1 l i J !I J
NOTES !- FIN I I. STATE IrT.
JUNE 30, fi ;,- AND 2004



(8) i.-. 11 .. .... (C continued)


2005


Contributions to the Association, as reported in the financial
statements of Gator ,'.- .. 1 *, Inc.
S..,",;,'' of prior year amounts received from Gator
II.*. I Inc. that were previously deferred
Deferral of amounts received from Gator Boosters, Inc. in
the current year
C.,,1: i:.: I l L, from Gator ",. i'I Inc., as recognized in the
i ,![', ii;: statements of revenues, expenses, and
changes in net assets


$ 25,036,177 $ :' .,: .',886

21,569,204 21,613,485

(23,327,742) (21,569,204)


$ 23,277,639 $ 25,374,167


At June 30, 2003, other assets included a $1,600,000 contribution receivable from the University of
Florida Foundation for their share of the purchase of a Cessna Citation airplane. This contribution
receivable was paid off during the year ended June 30, 2004.

( 9 ) ',; .. .. :1. i l .. '_ | ,a

Contributions to the University of Florida for the years ended June 30, 2005 and 2004, consisted of gifts
for the following ...,I ..

.' 2004


Named s.... I. ;;

UF's 150th celebration
Salaries
Band trip
Library
Logo i ..i .
Council for Economic Outreach
Parking : i;I i..
Strategic plan ,..,, i
Band !' ,,- ii,,l
Costs incurred on behalf of University of Florida projects
', 'mi 4 ,r and financial aid ,. ;i: .
Total .ii i.- ,i ,, to University of the -1 ; i.,


$ 750,000
11,166 9,166
25,700


63,325
38,000
75,000
1 '.., 16 1
33,334
200,000
200,000


127,686
$ 1,774,872


65,227

100,000
973,492
33,334
200,000
200,000
200,000
234,924
139,926
$ 2,931,769


The Association has committed to contribute '' i,'.;:, for 2006, and T .,/lO0 per year for the -i- 6i,,
two years, for .:''. .i.. Phi, iil usage for .i, If events. Additionally, the Association has agreed to
S..I. nii '11. $33,334 per year for five years for the ( ..... for Economic Outreach. The final contribution
was made during fiscal year -'r; 0,







UNIVERSITY ATHLETIC A' ~IA hi H I I, INC.
I ll I i-. TO I: I T]- H- I IN'i TS
i i i,: -, ':r;ll AND 2004



( 1 0 ) .... ..* ,

The Association leases various iil.-m. ,'i and i; j. -.- under operating leases. Total rent expense for the
years ended June 30, 2005 and 2004, was $576,953 and $523,447, respectively. Included in rent expense
for the years ended June 30, 2005 and 2004, was $519,733 and $466,227, respectively, in rent paid to the
University of F1 I: for rental of:: O'. 0 r'- i!: Center and recreational ...i fields.

Future minimum lease i 1; under noncancelable I .... lease agreements for the next five years
are as i ..

Year ,..
June 30, Amount

2006 $ 280,917
2007 280,917
'i l;1' 224,299
2009
2010
$ 786,133

( 1 1 ) ,,,,,l , I ,I ,. I I II P1 I. -I. .. I I 1,,,, ,- .- 1; 1 .

The Association has entered into .. ri.... r...i contracts with certain employees expiring in years through
2014 that provide for a minimum annual salary. At June 30, 2005, the total commitment for all contracts
for each of the next five years and in the aggregate is as follows:

Y ear ;' '....I. l..
June .''*", Amount

2006 $ 6,169,188
2007 6,403,463
2008 5,864,037
2009 4,779,645
2010 2,662,329
2011 -2014 5,603,397
$ 31,4:'.'


(12)

The Association is a i.,. nII i : in a wrongful death lawsuit filed by the family of a football player at the
University. The case is in the initial stages of discovery and has not been set for trial. Outside counsel for
the Association has advised that at this stage in the 1, iI,.- they cannot offer an opinion as to the
.1, I .:.1, outcome. The Association I. I,- suit is without merit and is vigorously ,;. ; ...irl. its
*._ l I l l,,


-30-






UNIV,'.. '.: *i ." i .' .. :. ASSOCIATION, I\ ,
NO i11 '. TO FIN I ,STAT7T -'NTS
'l i :':" A N D '.i f.'


( 1 3 ) ; ,- ',I I ,, ,, .,I: ,1. ,. ,,,,

Ih,. Association I." 1, .:, conventional commercial insurance coverage for .-.. .:i ,! exposures in the
areas of .. .. i: workers' ..... i.. ii. automobile liability and physical damage, and other general
liability exposures. This insurance was ,., i 1 .-. !,, various independent carriers and is designed to
insure against such risks and minimize the Association's financial exposure. The Association also
Si, .- with the ,i....- in the purchase of group health, dental and life insurance for its
employees and their families.

The Association has also '. 1 1 commercial insurance to cover ii' ; to student athletes received
during I.- ;- !i-, or play. This policy requires a $10,000 deductible per athlete per incident. Any amounts
paid by the athletes' .,i i insurance carriers can be ;.1.I;-.1 to the Association's deductible. Total
,il .. iI.h !- y !.. I .-. were $512,666 and $491,867 for the years ended June30, 2005 and 2004,
respectively. I 1 h ii i-' liabilities relating to unpaid and incurred but not ,., i! JI claims were considered
immaterial, and ',. .-. have not been reported in the -i- ,ri,-. ,,. i, .. financial statements.

The Association is not involved in any risk pools with other governmental entities.








I ES 40 ORE C CG.., P.L.
CKRT'Tf1E1) PUIP,1C ACCOU(JNTAN f S
AN I CONS]ULTA NTS



i":11. *'' ll1i' -I'ALCu 14'P..,LOVER FIN. F'- ? :,RH l' I:'
AND* i i' Il.1i.- I ,JE Id OTHER MATTERS .- ON
AN AlI -,i 'OF FIN IAL STAT, i ,i I! ;a. I r I' i ; -
SI AC NCE ; .: .ENTAUDITINGSTAND


To the I .. of Directors,
University Athletic Association, Inc.:


We have audited the financial statements of the University Athletic Association, Inc. (the Association) as
of and for the year ended June 30, 2005, and have issued our i .; ,i ,. ..., dated August 19, 2005. We
conducted our audit in accordance with auditing standards ': .....'i, ,. ..1 in the United States of
America and the standards applicable to i:,,.,,i .1 audits contained in Government Auditing ... .:.
issued by the C.i.. ', ,i;.., General of the United States.

:1 .. 1., ,.1 -d, C control Financial 'i i,; i .i....

In I ll, -, and ,- .e...,,...* our audit, we considered the Association's internal control over financial
,!- I.-, ii-, in order to determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide an opinion on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not .'.. .- ., ii disclose all matters in
the internal control that might be material weaknesses. A material weakness is a reportable condition in
which the design or .- ;.., of one or more of l.. internal control ., I .M... I i, does not reduce to a
relatively low level ',i risk that misstatements caused by error or fraud in amounts that would be material
in relation to the financial statements being .a:1 .I may occur and not be detected within a timely .. .1..
by .-;,.,, in the normal course of performing their assigned functions. We noted no matters involving
the internal control over financial ....... i; .:- and its -: i. ;, that we consider to be material weaknesses.

I ... 1,,p '.I ,, a n d ',Il,' I 1 'I .,- i ,

As ,. i of obtaining reasonable assurance about whether the Association's financial statements are of
material misstatement, we .. r.,.!, .1 tests of its .... ,.. with certain :,i-, i .. of laws, regulations,
contracts and grant agreements, i.........,. ..i, .. with which could have a ;, .. and material effect on the
determination of financial statement amounts. However, providing an I.,,i on ..i.l ti .... with those
I., i ',,,. was not an objective of our audit and, ... .,11, we do not express such an opinion. The
results of our tests disclosed no instances of .r *.:,, ..1. or other matters that are 'i';. 1 to be
; i". '1 under Government Auditing '.., ,

This report is intended solely for the information and use of the board of '1,1. i. and i l, :.. ,,1 m,, of the
Association, and the board of trustees and management of the University of Florida and is not intended to
be and should not be used by anyone other than ,i. ... i .,


'I /



,, !.... i- Florida
August 19, '*




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