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OFFICIAL STATEMENT DATED APRIL 10, 2012
NEW ISSUE MOODY’S RATING: A1 BOOK-ENTRY ONLY STANDARD & POOR’S RATING: A+ (See “RATINGS,” herein)
In the opinion of K&L Gates LLP, Bond Counsel, assuming compliance with certain covenants of the University, interest on the Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax. Interest on the Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations. See “TAX MATTERS” herein for a discussion of the opinion of Bond Counsel.
$24,385,000 Western Washington University
Student Recreation Fee Revenue and Refunding Bonds, 2012
Dated: As of the Delivery Date Due: May 1, as shown on inside cover
The Western Washington University (the “University”) Student Recreation Fee Revenue and Refunding Bonds, 2012 (the “Bonds”) will be issued as fully registered bonds under a book-entry system and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), in New York, New York. DTC will act as securities depository for the Bonds. Individual purchases of interests in the Bonds will be made in book-entry form only, in the principal amount of $5,000 or any integral multiple thereof within a single maturity. Purchasers of such interests will not receive certificates representing their interests in the Bonds. Principal and interest are payable directly to DTC by the fiscal agency of the state of Washington (currently The Bank of New York Mellon in New York, New York), as registrar and paying agent (the “Registrar”) for the Bonds.
Interest on the Bonds is payable semiannually on each May 1 and November 1, commencing November 1, 2012. Principal of the Bonds is payable on May 1 in each of the years shown on the inside cover. Upon receipt of payments of principal and interest, DTC is obligated to remit such principal and interest to the DTC Participants (as such term is defined herein) for subsequent disbursement to the purchasers of beneficial interests in the Bonds, as described under the caption “THE BONDS” herein.
Proceeds of the Bonds will be used to pay the cost of refunding a portion of the University’s Student Recreation Fee Revenue Bonds, Series 2002 for the purpose of debt service savings, to pay a portion of the cost of design, construction and improvement to facilities of the student recreation center, and to pay costs of issuance of the Bonds.
The Bonds are subject to redemption prior to their stated maturity date as described herein.
The Bonds are special revenue fund obligations of the University, payable solely from the revenues of the Recreation Center and other revenues deposited into the Bond Fund. The University has pledged to deposit Recreation Center Revenues into the Bond Fund at the times and in the amounts sufficient to pay and redeem the Bonds when due. The University has reserved the right to issue bonds in the future having a parity of lien on Recreation Center Revenues. The Bonds are not an obligation, either general or special, of the state of Washington, nor a general obligation of the University. The University has no taxing power.
This cover page contains certain information for quick reference only. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.
The Bonds are offered when, as and if executed and delivered by the University and accepted by the Underwriter, and are subject to receipt of the legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel to the University. It is expected that the Bonds will be available for delivery through the facilities of DTC in New York, New York, or to the Registrar on behalf of DTC by Fast Automated Securities Transfer on or about April 30, 2012 (the “Delivery Date”).
$24,385,000 Western Washington University
Student Recreation Fee Revenue and Refunding Bonds, 2012
Due May 1
Principal
Interest Rate
Yield
CUSIP Number (1)
2015 $ 700,000 3.00% 1.03% 959878LP2 2016 725,000 3.00 1.33 959878LQ0 2017 750,000 3.00 1.55 959878LR8 2018 770,000 3.00 1.75 959878LS6 2019 795,000 3.00 2.00 959878LT4 2020 815,000 3.50 2.25 959878LU1 2021 845,000 3.50 2.45 959878LV9 2022 870,000 3.50 2.70 959878LW7 2023 905,000 4.00 2.85 (2) 959878LX5 2024 940,000 4.00 3.00 (2) 959878LY3 2025 980,000 4.00 3.18 (2) 959878LZ0 2026 1,020,000 4.00 3.30 (2) 959878MA4 2027 1,060,000 4.00 3.40 (2) 959878MB2 2028 1,100,000 4.00 3.50 (2) 959878MC0 2029 1,145,000 4.00 3.60 (2) 959878MD8 2030 1,195,000 4.00 3.70 (2) 959878ME6 2031 1,240,000 4.00 3.80 (2) 959878MF3 2032 1,285,000 4.00 3.90 (2) 959878MG1 2033 1,340,000 4.00 4.00 959878MH9
$5,905,000 4.00% Term Bonds due May 1, 2037 priced to yield 4.10%; CUSIP No. (1): 959878MM8 (1) CUSIP is a registered trademark of the American Bankers Association. The CUSIP numbers herein are
provided by CUSIP Global Services, which is managed on behalf of the American Bankers Association by Standard & Poor’s. CUSIP numbers are provided herein for the convenience of reference only, and are subject to change. The University takes no responsibility for the accuracy of such CUSIP numbers.
(2) Priced to the first optional call date of May 1, 2022.
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No quotations from or summaries or explanations of the provisions of laws or documents herein purport to be complete, and reference is made to such laws and documents for full and complete statements of their provisions. This Official Statement is not to be construed as a contract or agreement between the University and the purchasers or owners of any of the Bonds. The cover page hereof and appendices attached hereto are part of this Official Statement.
No dealer, broker, sales representative, or other person has been authorized by the University to give any information or to make any representations other than as contained in this Official Statement in connection with the offering made hereby and, if given or made, such information or representations must not be relied upon as having been authorized by the University. The information and expressions of opinions herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the information set forth herein since the date hereof. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such persons to make such offer, solicitation or sale.
Certain statements contained in this Official Statement reflect not historical facts but forecasts and “forward-looking statements.” The words “estimate,” “project,” “anticipate,” “expect,” “intend,” “believe” and similar expressions are intended to identify forward-looking statements. The achievement of certain results or other expectations contained in forward-looking statements involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as described in the continuing disclosure undertaking of the University, the University does not plan to issue any updates or revisions to those forward-looking statements if or when their expectations or events, conditions or circumstances on which such statements are based occur.
THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE BOND RESOLUTION HAS NOT BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF SECURITIES LAWS OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
The inactive textual reference to the websites identified herein are not hyperlinks and do not incorporate the identified websites by reference. The websites are not a part of this Official Statement, and investors should not rely on information presented in the websites in determining whether to purchase the Bonds.
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Western Washington University Bellingham, Washington 98225–5996
Telephone: (360) 650-3000 www.wwu.edu *
Board of Trustees Dennis Madsen Chair Ralph Munro Vice-Chair Betti Fujikado Secretary Karen Lee Member Philip E. Sharpe, Jr Member Dick Thompson Member Jacob Whitish Student Member Peggy Zoro Member
Administrative Officers Dr. Bruce Shepard President Dr. Catherine Riordan Provost/Vice President for Academic Affairs Stephanie Bowers Vice President for University Advancement/ Executive Director for WWU Foundation Dr. Eileen V. Coughlin Senior Vice President and Vice President for Enrollment and Student Services Steve Swan Vice President for University Relations Richard Van Den Hul Vice President for Business and Financial Affairs
Certain Student Affairs Directors Dr. Kunle Ojikutu Assistant Vice President for Enrollment and Student Services and Special Assistant to the President for Diversity Linda P. Beckman Division Director of Budget and Administration Marie Sather Director of Campus Recreation Services Adam Leonard Associate Director of Campus Recreation Services
Bond Counsel K&L Gates LLP
Seattle, Washington
Financial Advisor SDM Advisors, Inc.
Mount Vernon, Washington
Fiscal Agent and Registrar
The Bank of New York Mellon New York, New York
* None of the websites referenced in this Official Statement, including the University’s, is included as a part of this Official Statement. Investors should not rely on information presented in the websites in determining whether to purchase the Bonds. Any references to the website addresses are not hyperlinks and do not incorporate any of the websites by reference.
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Table of Contents THE BONDS .................................................................................................................................................................. 1
Page
General Description ................................................................................................................................................... 1 Authorization of the Bonds ........................................................................................................................................ 1 Form of Bonds ........................................................................................................................................................... 1 Registrar .................................................................................................................................................................... 1 Procedure in the Event of Termination of Book-Entry Transfer System ................................................................... 2 Redemption Provisions .............................................................................................................................................. 2 Defeasance ................................................................................................................................................................. 2 Purchase ..................................................................................................................................................................... 2
PURPOSE ....................................................................................................................................................................... 3 Sources and Uses of Funds ........................................................................................................................................ 3 Refunding Plan .......................................................................................................................................................... 3
SECURITY FOR THE BONDS ..................................................................................................................................... 3 Pledge of Revenue ..................................................................................................................................................... 3 Funds and Accounts ................................................................................................................................................... 4 Flow of Funds from Revenue Account ...................................................................................................................... 4 Covenants of the University ...................................................................................................................................... 5 Additional Bonds ....................................................................................................................................................... 5
THE RECREATION CENTER ...................................................................................................................................... 6 The SRC Fee .............................................................................................................................................................. 6 Organization and Administration ............................................................................................................................... 6 Historical Operating Results ...................................................................................................................................... 7 Student Recreation Fee Revenue Bond Debt Service ................................................................................................ 8 Schedule of Student Recreation Fee Revenue Bond Debt Service ............................................................................ 8 Debt Payment Record ................................................................................................................................................ 8 Future Financing ........................................................................................................................................................ 8
LEGAL INFORMATION ............................................................................................................................................... 8 Litigation ................................................................................................................................................................... 8 Approval of Counsel .................................................................................................................................................. 9 Limitations on Remedies ........................................................................................................................................... 9
TAX MATTERS ............................................................................................................................................................. 9 INITIATIVE AND REFERENDUM ............................................................................................................................ 10 CONTINUING DISCLOSURE UNDERTAKING ...................................................................................................... 11 OTHER BOND INFORMATION ................................................................................................................................ 12
Ratings ..................................................................................................................................................................... 12 Financial Advisor .................................................................................................................................................... 12 Underwriter .............................................................................................................................................................. 12 Official Statement .................................................................................................................................................... 13
APPENDICES:
THE UNIVERSITY ................................................................................................................................... APPENDIX A THE BOND RESOLUTION (No. 2012-01) .............................................................................................. APPENDIX B AUDITED FINANCIAL STATEMENTS OF THE UNIVERSITY ......................................................... APPENDIX C FORM OF BOND COUNSEL OPINION ................................................................................................. APPENDIX D BOOK-ENTRY TRANSFER SYSTEM............................................................................ ........................ APPENDIX E
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$24,385,000 Western Washington University
Student Recreation Fee Revenue and Refunding Bonds, 2012
This Official Statement of Western Washington University (the “University”), a regional university of the state of Washington (the “State”), is provided for the purpose of setting forth information in connection with the issuance by the University of its Student Recreation Fee Revenue and Refunding Bonds, 2012 (the “Bonds”).
The Bonds are special revenue fund obligations of the University, payable solely from the Student Recreation Center Fee (the “SRC Fee”) and the gross revenues received from the ownership and operation of the Recreation Center (“Recreation Center Revenue”) and other revenues deposited into the Recreation Center Bond Fund. The SRC Fee is a mandatory services and activities fee charged to students enrolled at the University’s main campus in Bellingham, Washington, as approved by referendum of the students of the University in February 2000, to pay costs of constructing, operating, and maintaining the Recreation Center. See “SECURITY FOR THE BONDS,” and “THE RECREATION CENTER,” herein.
Capitalized terms used in this Official Statement are to have the meanings assigned to them in the Bond Resolution (as defined below), a copy of which is attached as Appendix B. This Official Statement speaks only as of its date and the information contained herein is subject to change. All summaries herein of documents, provisions and agreements are qualified in their entirety by reference to the actual instruments, copies of each of which are available for inspection at the offices of the University.
THE BONDS General Description
The Bonds will be dated as of the Delivery Date, will be issued in denominations of $5,000 or any integral multiple thereof within a single maturity, and will bear interest from their dated date (or the most recent date to which interest has been paid thereon). Interest on the Bonds will be payable semiannually on each May 1 and November 1, commencing November 1, 2012. The Bonds will bear interest at the rates and will mature on the dates and in the amounts set forth on the inside cover of this Official Statement subject to prior redemption as described herein. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Authorization of the Bonds
The Bonds are authorized pursuant to Resolution, No. 2012-01, adopted by the Board of Trustees (the “Board”) at a regular meeting on February 10, 2012 (the “Bond Resolution”), in accordance with the authority granted to the University in sections 28B.10.300 through 28B.10.330, inclusive, of the Revised Code of Washington (“RCW”). A copy of the Bond Resolution is attached as Appendix B hereto.
Form of Bonds
The Bonds will be issued in fully registered form and, when issued, will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases will initially be made in book-entry form only. Purchasers will not receive certificates representing their beneficial ownership interest in the Bonds so purchased. See Appendix E - “Book-Entry Transfer System.”
Registrar
The University has adopted the system of registration for the Bonds approved by the Washington State Finance Committee (the “Committee”). Pursuant to chapter 43.80 RCW, the Committee designates one or more fiscal agencies (“Fiscal Agency”) for bonds issued within the State. The Committee has designated The Bank of New York Mellon, New York, New York as the Fiscal Agency. The Fiscal Agency initially will act as registrar (the “Registrar”) under the terms of the Bond Resolution.
In order to meet payment requirements for interest on and principal of the Bonds as the same becomes due and payable, the University will remit money to the Registrar. The Registrar will remit payment to DTC in accordance with the terms of the DTC procedures as then in effect. Principal of the Bonds will be paid to registered owners upon presentation and surrender of the Bonds at maturity or upon earlier redemption to the office of the Registrar.
Neither the University nor the Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds for the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on the Bonds, any notice that is permitted or required to be given to Registered Owners under the Bond Resolution (except such notices as are required to be given by the University to the Registrar or to DTC), the selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds are held in fully immobilized form, DTC or its successor depository will be deemed to be the
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Registered Owner for all purposes, and all references to the Registered Owners will mean DTC or its nominee and will not mean the Beneficial Owners.
Procedure in the Event of Termination of Book-Entry Transfer System
If the University is unable to retain a qualified successor to DTC or the University has determined that it is in the best interest of the University not to continue the book-entry system of transfer or that interests of Beneficial Owners of the Bonds might be adversely affected if the book-entry system of transfer is continued, the University shall execute, authenticate and deliver the Bonds in fully registered form, in the denomination of $5,000 or any integral multiple thereof within a maturity. Thereafter, the principal of the Bonds shall be payable upon due presentment and surrender thereof at the principal office of the Registrar. Interest on the Bonds will be payable by check or draft mailed to the persons in whose names such Bonds are registered, at the address appearing upon the registration books on the 15th day of the month preceding an interest payment date; and the Bonds will be transferable as provided in the Bond Resolution.
Redemption Provisions
Optional Redemption for the Bonds. The Bonds maturing on May 1, 2015 through 2022 are not subject to redemption prior to their stated maturity. The Bonds maturing on and after May 1, 2023 are subject to optional redemption, as a whole or in part, on any date on or after May 1, 2022 at a price of par plus accrued interest to the date fixed for redemption.
Mandatory Redemption for the Bonds. The Bonds maturing on May 1, 2037 are term bonds (the “Term Bonds”), subject to mandatory redemption, in part, at par plus accrued interest to the date fixed for redemption.
Term Bonds Maturing in 2037 Year Amount 2034 $1,390,000 2035 1,445,000 2036 1,505,000 2037 (1) 1,565,000
(1) Final maturity
To the extent that the University has optionally redeemed or purchased any Term Bonds prior to the scheduled mandatory redemption of such Term Bonds, the University may reduce the principal amount of the Term Bonds to be redeemed in like aggregate principal amount. Such reduction may be applied in the year specified by the University.
Selection of Bonds to be Redeemed. For so long as the book-entry only system is being used, the particular Bonds or portions thereof to be redeemed within a maturity will be selected by DTC in accordance with DTC’s operational arrangements. If the book-entry system is no longer being used or, if fewer than all of the Bonds of like maturity are called for prior redemption, the particular Bonds or portions of Bonds within a maturity to be redeemed will be selected by lot in the manner determined by the Fiscal Agent.
Notice of Redemption. Unless waived by any Registered Owners of Bonds to be redeemed, official notice of any such redemption (which notice, in the case of an optional redemption, may be conditional and also is to state that redemption is conditioned by the Registrar on the receipt of sufficient funds for redemption) shall be given by the Registrar on behalf of the University by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to each Registered Owner of the Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Registrar. Notwithstanding the foregoing, if the Bonds are held in book-entry only form, notice of redemption will be given only in accordance with the operational arrangement then in effect at DTC but not less than 20 days prior to the date of redemption. Failure to give notice as to redemption of any Bond or any defect in such notice will not invalidate redemption of any other Bond. The University will not provide notice to any Beneficial Owners of Bonds.
Defeasance
If money and/or noncallable Government Obligations, as defined in the Bond Resolution, maturing at such times and bearing interest to be earned thereon in amounts sufficient to retire any or all of the Bonds in accordance with their terms are set aside irrevocably in a special account and pledged to effect such retirement, then no further payments need to be made to pay or secure the payment of such Bonds, and such Bonds thereafter will be deemed not to be outstanding.
Purchase
The University has reserved the right to use at any time any surplus revenue available after all required payments are made to purchase any of the Bonds offered to or solicited by the University.
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PURPOSE Proceeds of the Bonds will be used, together with other funds of the University, to pay the cost of refunding a portion of the Student Recreation Fee Revenue Bonds, Series 2002 (the “2002 Bonds”) for the purpose of debt service savings, to pay approximately $1,090,000 toward costs of design, and construction of improvements to the facilities of the student recreation center, consisting of multi-purpose playfields for recreational use by the students, and to pay costs of issuance of the Bonds. Proceeds of the 2002 Bonds were used to construct a 98,000 square foot recreational facility (the “Recreation Center”). See “THE RECREATION CENTER,” herein. Simultaneous with delivery of the Bonds, the University will provide for payment of the 2002 Bonds scheduled to mature on May 1, 2012.
Sources and Uses of Funds
Sources of Funds Par Amount of the Bonds $24,385,000 Net Reoffering Premium 876,188 Transfer from Prior Debt Service Fund Total Sources of Funds
586,115 $25,847,303
Uses of Funds Deposit to Refunding Escrow $24,181,115 Deposit to Project Fund 1,090,000 Estimated Costs of Issuance (1) Total Uses of Funds
576,188 $25,847,303
(1) Costs of issuance include legal fees, financial advisor’s fees, underwriting fee, rating agency fees and other costs incurred in connection with the issuance of the Bonds.
Refunding Plan
Proceeds of the Bonds will be used, together with funds of the University, to refund on a current basis a portion of the 2002 Bonds, which were originally scheduled to mature May 1, 2013 through 2023, 2027, and 2033 (the “Refunded Bonds”). Funds will be deposited with U.S. Bank National Association, as Escrow Agent, and held in cash, and will be sufficient to redeem the Refunded Bonds on May 1, 2012, at a price equal to 100 percent of the principal amount thereof, plus accrued interest to the date of redemption. Simultaneous with delivery of the Bonds, the University will provide for payment of the 2002 Bonds scheduled to mature on May 1, 2012.
The Refunded Bonds are shown in the table below.
Student Recreation Fee Revenue Bonds, Series 2002
May 1 Amount Interest Rate CUSIP No. Call Date 2013 $ 670,000 4.40% 959878HM4 May 1, 2012 2014 700,000 4.50 959878HN2 May 1, 2012 2015 725,000 5.00 959878HY8 May 1, 2012 2016 765,000 5.00 959878HZ5 May 1, 2012 2017 805,000 5.00 959878JA8 May 1, 2012 2018 845,000 5.00 959878JB6 May 1, 2012 2019 885,000 5.00 959878JC4 May 1, 2012 2020 930,000 5.00 959878JD2 May 1, 2012 2021 975,000 5.00 959878JE0 May 1, 2012 2022 1,020,000 5.00 959878JF7 May 1, 2012 2023 1,075,000 5.00 959878JG5 May 1, 2012
2027 4,870,000 5.00 959878JK6 May 1, 2012
2033 9,330,000 5.00 959878JL4 May 1, 2012
SECURITY FOR THE BONDS Pledge of Revenue
The Bonds are special revenue fund obligations of the University, payable solely from revenue from the SRC Fee, Recreation Center Revenue, and other revenues deposited into the Recreation Center Bond Fund (the “Bond Fund”). The Bonds are equally and ratably secured by liens created under the Bond Resolution against the money and investments in the Student
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Recreation Fee Revenue Account (the “Revenue Account”) and by first liens against and pledge of the money and investments in the Bond Fund. The University has covenanted to deposit into the Revenue Account, upon receipt, revenue from the SRC Fee, all Recreation Center Revenue and the net income earned on investments in the Revenue Account, and has covenanted to use the money and investments in the Revenue Account as set forth under the heading “Flow of Funds from Revenue Account,” below.
The Bonds do not constitute a general or special obligation of the State or a general obligation of the University. The Registered Owners of the Bonds have no right to require the State, nor has the State any obligation or legal authorization, to levy any taxes or appropriate or expend any of its funds for the payment of the principal of or interest on the Bonds. The University has no taxing power.
SRC Fee. The University charges students enrolled at the main campus in Bellingham, Washington, a mandatory services and activities fee voted by referendum of the students of the University in February 2000, to pay costs of constructing, operating and maintaining the Recreation Center. All students taking six or more credits and enrolled at the Bellingham campus are subject to the SRC Fee, which is a mandatory fee in the amount of $95 per quarter, including summer quarter. Students enrolled in less than six credit hours may choose to pay $95 per quarter for access to the facility, or may pay a daily access fee for use. The SRC Fee may be increased or decreased, so long as the Bond covenants are met. The Bonds are secured by a lien on the gross amount of the SRC Fee collected by the University, after deduction of a 3.5 percent transfer to the University’s financial aid fund as required by State law. See “THE RECREATION CENTER – The SRC Fee,” and “– Historical Operating Results,” herein.
Recreation Center Revenue. The University collects certain revenues from ownership and operation of the Recreation Center, including revenue from membership fees from faculty, staff or alumni. See “THE RECREATION CENTER – Historical Operating Results,” herein.
Funds and Accounts
Revenue Account. The University has established the Revenue Account, which is maintained separate and apart from all other funds and accounts of the University. The University has covenanted to deposit into the Revenue Account, upon receipt, revenue from the SRC Fee, all Recreation Center Revenue and the net income earned on investments in the Revenue Account. The University has established an operating reserve account within the Revenue Account, which operating reserve account had a balance of $1,602,663 as of January 31, 2012. The University intends to use $250,000 of this balance toward costs of the improvements.
Bond Fund. The University has established a Bond Fund to be held separate and apart from all other funds and accounts of the University for the sole purpose of paying and securing the payment of the Bond and Additional Bonds. The University has covenanted to deposit into the Bond Fund from the Revenue Account, amounts which, together with money on hand in the Bond Fund, are necessary to pay the principal of and interest on the Bonds when due. The amounts pledged to be paid into the Bond Fund are a prior lien and charge upon the Recreation Center Revenue, the SRC Fee and/or monies in the Revenue Account, superior to all other charges of any kind or nature whatsoever.
Renewal and Replacement Reserve Account. The University has established a special trust fund designated as the Renewal and Replacement Reserve Account, which fund is kept separate and apart from all other accounts and moneys held by the University. Pursuant to the Bond Resolution, the University has agreed to prepare a Capital Renewal Management Plan (the “Plan”), to be updated at least every five years, which Plan is to identify future capital expenditure requirements for the Recreation Center and recommend the Renewal and Replacement Reserve Requirement for the following five years. As of June 30, 2008, the University reviewed its Plan, and established an annual deposit requirement of $250,000 each fiscal year, from 2009 through 2013. Prior to June 30, 2013 the University is to update the Plan, to identify future capital expenditure requirements for the Recreation Center and recommend the Renewal and Replacement Reserve Requirement for the following five years. The moneys deposited in the Renewal and Replacement Reserve Account may be disbursed to pay expenses under the Plan, non-routine maintenance and upgrade expenses of the Recreation Center and/or for unanticipated capital needs for the Recreation Center. The balance in the Renewal and Replacement Reserve Account as of January 31, 2012 is $1,719,714.
No Debt Service Reserve Fund. The University has not established a debt service reserve fund as additional security for the Bonds and Bond owners have no claim on any reserve fund that may be established as security for Additional Bonds, if any, issued in the future.
Flow of Funds from Revenue Account
The University has covenanted to use the money and investments in the Revenue Account, and has pledged such money and investments, solely for the following purposes (in order of priority):
(i) For transfers to the Bond Fund to pay the principal of, interest on or premium, if any, on the Bonds;
(ii) To pay costs of operation and maintenance of the Recreation Center and the related student recreation programs;
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(iii) To make all payments required to be made into the Common Reserve Fund to maintain the Common Reserve Requirement if there are Outstanding Covered Bonds, and into any other reserve fund or account established for Parity Bonds that are Uncovered Bonds or to meet a reimbursement obligation with respect to any Qualified Insurance or Qualified Letter of Credit or other credit enhancement device, if so required by Resolution of the Board.
(iv) For transfers to the Renewal and Replacement Reserve Account necessary to meet and maintain the Renewal and Replacement Reserve Requirement;
(v) For transfers to any special funds established for the payment of principal of and interest on any revenue bonds or other revenue obligations having a lien upon the money and investments in the Revenue Account junior and subordinate to the lien of the Bonds;
(vi) For establishment of reasonable operating reserves; or
(vii) For the purchase of any Outstanding Bonds and/or Parity Bonds at any price deemed reasonable to the Authorized Representative of the University or the defeasance of Outstanding Bonds and/or Parity Bonds.
Covenants of the University
The University has made the following covenants in the Bond Resolution.
(i) Coverage Covenant. The University is to set rates and charges for the use of the Recreation Center and/or is to maintain or increase the SRC Fee to provide amounts sufficient to pay operating, maintenance and program expenses of the Recreation Center, to provide for repair and replacement of components thereof, to pay insurance premiums with respect thereto, and to pay other costs properly allowable to the Recreation Center and to recover amounts sufficient to pay debt service (taking into account anticipated receipts of the SRC Fee as well as other receipts and allocations made available by the University) with respect to all Outstanding Parity Bonds. The SRC Fee may be decreased as long as the coverage covenant is met.
(ii) Payment of Debt Service. The University is to pay the principal of and the interest on all Outstanding Bonds on the dates, at the places, from the sources of funds and in the manner, all as provided in the Bond Resolution.
(iii) Maintenance of the Recreation Center. The University is to maintain the Recreation Center in good repair, working order and condition, and is to at all times operate the same and the business in connection therewith in an efficient manner and at reasonable cost and maintain the Renewal and Replacement Reserve Requirement.
(iv) Maintenance of Records. The University is to keep accurate financial records and proper books relating to the receipt and expenditure of Recreation Center Revenue and, within 180 days following the end of each Fiscal Year, furnish, upon request, copies of financial reports reflecting in reasonable detail the receipt and use of Recreation Center Revenue and the University’s compliance with the material provisions of the Bond Resolution.
(v) Insurance. The University is to procure and maintain such public liability insurance as is prudent and as is customarily carried by similar institutions engaged in activities of comparable size. The University is to additionally procure and maintain such property and business interruption insurance coverages as are prudent and customarily carried by similar institutions engaged in activities of comparable size.
Additional Bonds
The University has reserved the right to issue one or more series of Additional Bonds to finance the repair, renovation, alteration or betterment of the Recreation Center or related or additional recreational facilities, or to refund or advance refund any Parity Bonds, so long as:
(i) The University is not in default of any of its covenants and undertakings in connection with all Outstanding Bonds; and
(ii) The University has received a certificate of the Treasurer of the University, approved by the Board, based upon the appropriate audited annual financial reports of the University, to the effect that Recreation Center Revenues (taking into account any Board approved increases in the SRC Fee and/or known increases in student enrollment), plus the average dollar amount of the SRC Fee collected during the two most recent Fiscal Years for which audited financial reports are available, immediately preceding the date of issuance of such Additional Bonds, will be at least equal to (i) the Annual Debt Service with respect to all Parity Bonds to be outstanding following the date of issuance of such Additional Bonds, plus (ii) costs of maintenance, operation and programs of the Recreation Center, including insurance premiums, costs of repair and replacement and other costs properly allocable to the Recreation Center.
Nothing in the Bond Resolution prevents the University from granting a lien or liens which are junior and subordinate to the lien of any Outstanding Bonds against the Recreation Center Revenue or the SRC Fee and the money and investments in the Revenue Account.
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THE RECREATION CENTER
The Recreation Center was constructed in 2003 with proceeds of the 2002 Bonds and features 98,000 square feet of recreational space including 10,000 square feet of weight and cardio equipment, three-court gymnasium, two multipurpose rooms, elevated jogging track, men’s and women’s locker rooms, administration and meeting areas, retail food and lounge area, satellite wellness program, a six-lane 25 yard lap pool, and a 32-person spa. The Recreation Center serves approximately 392 elective members consisting of faculty, staff, alumni, spouses, and partners, in addition to fee-paying students. The University estimates the facility is utilized by over 90 percent of the student population and averages over 2,200 patrons a day during the academic year. A portion of Bond proceeds will be used to pay $1,090,000 of the costs of design and construction of improvements to the Recreation Center, consisting of multi-purpose playfields for recreational use by the students.
The SRC Fee
Services and Activities (“S&A”) fees mean fees, other than tuition fees, charged to all students enrolled at the University and are used for the express purpose of funding student activities and programs or for facilities for student use. The Board establishes S&A fees to be charged annually in accordance with the guidelines established by the Board. The Board may increase the existing S&A fee annually, consistent with the budgeting procedures set forth in statute. The percentage increase may not be greater than the annual percentage increase in student tuition fees for resident undergraduate students. The percentage increase limit does not apply to the portion of the S&A fee previously committed to the repayment of bonded debt, such as the SRC Fee. Pursuant to State law, 3.5 percent is deducted from S&A fee revenues for deposit into an institutional financial aid fund that is used to provide student loans and grants.
The University established the SRC Fee as an S&A fee for collection beginning fall quarter 2003, after recommendation from the students of the University on the basis of a referendum in February 2000. The SRC Fee, to be used exclusively to pay costs of constructing and operating the Recreation Center and recreation programs, is currently $95 per quarter and is charged to all students taking six or more credits and enrolled at the Bellingham campus. Other students, faculty, staff and alumni may pay a membership fee on a voluntary basis to gain access to the Recreation Center. The Bonds are secured by revenue from the SRC Fee and Recreation Center Revenue.
Organization and Administration
The Recreation Center is managed by a Director, who is assisted by an Associate Director and reports to the Office of the Vice President for Enrollment and Student Services. The Vice President for Enrollment and Student Services is responsible for strategic long-range planning, and the Division Director of Budget and Administration of Enrollment and Student Services provides fiscal oversight and analysis and serves as a liaison to the University’s Business and Financial Affairs division. The Director of Campus Recreation Services reports to the Assistant Vice President for Enrollment and Student Services, who reports directly to the Vice President for Enrollment and Student Services. The following individuals are responsible for the ongoing operation, management and maintenance of the Recreation Center.
Kunle Ojikutu, Ph.D., Assistant Vice President for Enrollment and Student Services/Special Assistant to the President for Diversity. Dr. Ojikutu has served the University in this capacity since 1996. Dr. Ojikutu assists the Vice President for Enrollment and Student Services with division management and is responsible for Campus Recreation Services, as well as the Student Health Center, Counseling Center, and Prevention and Wellness Services. He provides leadership and overall supervision including fiscal and budgetary oversight, short- and long-range planning, and personnel management for Campus Recreation Services. Dr. Ojikutu received his M.P.A. from the University of New Mexico-Albuquerque and his doctorate from the University of Nebraska-Lincoln with an emphasis in Educational Leadership in Higher Education.
Linda P. Beckman, M.B.A., Division Director of Budget and Administration for Enrollment and Student Services. Ms. Beckman assists the Vice President for Enrollment and Student Services with long-term strategic resource planning and oversees fiscal operations for the division. She has served in this capacity since 1994. Previously, she served as Director of Financial Services (1991-94), Director of Operations (1989-91) and Assistant to the Director of Corporate and Major Giving for the Western Foundation (subsequently renamed the Western Washington University Foundation), the University’s fundraising arm (1986-89). Ms. Beckman received her M.B.A. from the University.
Marie Sather, M.Ed., Director of Campus Recreation Services. Ms. Sather has held this position since 1992. Previously, she served as the Intramural Coordinator/Sport Club Advisor at the University (1984-92). Ms. Sather was a member of the U.S.A. Olympic Field Hockey Team (1976-79) and received her M.Ed. from the University.
Adam Leonard, M.P.E., Associate Director of Campus Recreation Services. Mr. Leonard has held this position since 2007. Before arriving at the University, Mr. Leonard served as the Assistant Director of Campus Recreational Services at the University of Nevada, Las Vegas (2002-2007). During his 15 year professional career, Mr. Leonard has taught at all levels, from elementary education to university curriculum. His teaching experience has been complemented by an extensive coaching career in baseball and basketball. Mr. Leonard is currently working on his Ph.D. in educational leadership.
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Historical Operating Results
The following table depicts historical revenues, expenses and changes in net assets attributable to the Recreation Center for the past five fiscal years.
Western Washington University Recreation Center
Statement of Revenues, Expenses and Changes in Net Assets (1)
2011 2010 2009 2008 2007 Operating Revenues Service and activity fee (2) $ 3,846,718 $ 3,805,911 $ 3,771,537 $ 3,684,400 $ 3,527,755 Staff, faculty and alumni membership fees 226,572 225,263 232,649 199,324 189,062 Instructional course fees 132,442 117,327 110,124 113,434 88,656 Other course fees 6,602 15,264 49,205 2,069 32,656 Rental revenue 48,305 48,606 42,355 49,318 52,294 Other revenues 80,350 87,229 59,261 60,993 Total operating revenues
57,077 $ 4,340,989 $ 4,299,600 $ 4,265,131 $ 4,109,538 $ 3,947,500
Operating Expenses
Salaries and benefits $ 1,296,538 $ 1,234,190 $ 1,159,043 $ 1,017,831 $ 861,774 Depreciation 720,155 712,482 717,839 723,096 721,616 Utilities 277,470 266,709 328,550 309,537 292,281 Repairs and maintenance 280,351 374,974 203,874 283,430 207,700 Equipment and furnishings 100,728 99,349 44,187 137,732 109,398 Supplies and materials 91,294 89,517 70,890 77,298 51,344 Administrative assessment 178,988 138,713 123,791 97,948 34,014 Insurance 27,204 29,953 28,626 21,759 26,287 Other 91,674 87,554 94,541 77,519 Total operating expenses
86,315 $ 3,064,402 $ 3,033,441 $ 2,771,341 $ 2,746,150 $ 2,390,729
Income from operations $ 1,276,587 $ 1,266,159 $ 1,493,790 $ 1,363,388 $ 1,556,771
Non-operating Revenues (Expenses)
Investment income $ 16,537 $ 36,795 $ 87,059 $ 139,479 $ 122,744 Gift income (3) 60 50,050 50,000 50,000 50,050 Interest expense (1,221,531) (1,246,606) (1,269,583) (1,291,517) (1,312,650) Amortization of bond discounts and costs (47,291) (47,755) (48,684) (49,514) (50,316) Parberry Fitness Center support - - (12,792) (25,584) Total non-operating expenses
(25,584) $(1,252,225) $(1,207,516) $(1,194,000) $(1,177,136) $(1,215,756)
Increase in net assets $ 24,362 $ 58,643 $ 299,790 $ 186,252 $ 341,015
Net Assets, Beginning of Year $ 1,987,880 $ 1,929,237 $ 1,629,447 $ 1,443,195 $ 1,102,180 Net Assets, End of Year $ 2,012,242 $ 1,987,880 $ 1,929,237 $ 1,629,447 $ 1,443,195 (1) Information is based on audited financial statements of the Recreation Center. (2) Net of mandatory transfer of an amount equal to 3.5 percent for student financial aid fund. (3) A local donor committed to providing $50,000 each year as support to the Recreation Center, which commitment ended after 2010.
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Student Recreation Fee Revenue Bond Debt Service
Upon the issuance of the Bonds and refunding of the Refunded Bonds, the University will have no outstanding Parity Bonds other than the Bonds. The following schedule shows debt service requirement for the Bonds.
Schedule of Student Recreation Fee Revenue Bond Debt Service
(Fiscal Years Ending June 30)
The Bonds Total Fiscal Year Principal Interest Debt Service
2013 $ - $ 927,920 $ 927,920 2014 - 925,350 925,350 2015 700,000 925,350 1,625,350 2016 725,000 904,350 1,629,350 2017 750,000 882,600 1,632,600 2018 770,000 860,100 1,630,100 2019 795,000 837,000 1,632,000 2020 815,000 813,150 1,628,150 2021 845,000 784,625 1,629,625 2022 870,000 755,050 1,625,050 2023 905,000 724,600 1,629,600 2024 940,000 688,400 1,628,400 2025 980,000 650,800 1,630,800 2026 1,020,000 611,600 1,631,600 2027 1,060,000 570,800 1,630,800 2028 1,100,000 528,400 1,628,400 2029 1,145,000 484,400 1,629,400 2030 1,195,000 438,600 1,633,600 2031 1,240,000 390,800 1,630,800 2032 1,285,000 341,200 1,626,200 2033 1,340,000 289,800 1,629,800 2034 1,390,000 236,200 1,626,200 2035 1,445,000 180,600 1,625,600 2036 1,505,000 122,800 1,627,800 2037 1,565,000 62,600 Total
1,627,600 $24,385,000 $14,937,095 $39,322,095
Debt Payment Record
The University has always promptly met principal and interest payments on outstanding bonds when due. No refunding bonds have been issued for the purpose of preventing an impending default.
Future Financing
The University does not anticipate the issuance of additional bonds for the Recreation Center in the next two years. The University routinely monitors its outstanding obligations for refunding opportunities, and may issue refunding debt when deemed beneficial.
LEGAL INFORMATION
Litigation
At the time of delivery of and payment for the Bonds, the University will deliver a certificate stating that there is no litigation then pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, application of the proceeds of the Bonds as contemplated by the Bond Resolution, in any way contesting or affecting the validity of the Bonds, any proceedings of the University taken with respect to the issuance or sale thereof, the pledge or application of any money or security provided for the payment of the University, the existence or powers of the University or the title of any officers of the University to their respective positions.
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The University periodically reports litigation of a general nature and, after consideration and investigation, has concluded that the University has meritorious defenses or such litigation is immaterial and/or will have no impact on timely repayment of the Bonds.
Approval of Counsel
Legal matters incident to the authorization, execution and delivery of the Bonds are subject to the unqualified approving legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel. Bond Counsel has reviewed this document only to confirm that the portions of it describing the Bonds and the authority to issue them conform to the Bonds and the applicable laws under which they are issued. The form of the opinion relating to the Bonds is included in Appendix D of this Official Statement.
Limitations on Remedies
Any remedies available to the owners of the Bonds upon the occurrence of an event of default under the Bond Resolution are in many respects dependent upon judicial actions which are in turn often subject to discretion and delay and could be both expensive and time-consuming to obtain. If the University fails to pay principal of or interest on the Bonds, there can be no assurance that available remedies will be adequate to fully protect the interest of the Registered Owners of the Bonds.
In addition to the limitations on remedies contained in the Resolution, the rights and obligations under the Bonds and the Resolution may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The opinion to be delivered by K&L Gates LLP, as Bond Counsel, concurrently with the issuance of the Bonds, will be subject to limitations regarding bankruptcy, insolvency and other laws relating to or affecting creditors’ rights. A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix D.
TAX MATTERS
In the opinion of Bond Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Bonds is taken into account in determining adjusted current earnings for the purpose of the federal alternative minimum tax imposed on certain corporations.
Federal income tax law contains a number of requirements that apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the use of proceeds of the Bonds and the facilities financed or refinanced with proceeds of the Bonds and certain other matters. The University has covenanted to comply with all applicable requirements.
Bond Counsel’s opinion is subject to the condition that the University comply with the above-referenced covenants and, in addition, will rely on representations by the University and its advisors with respect to matters solely within the knowledge of the University and its advisors, respectively, which Bond Counsel has not independently verified. If the University fails to comply with such covenants or if the foregoing representations are determined to be inaccurate or incomplete, interest on the Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds, regardless of the date on which the event causing taxability occurs.
Except as expressly stated above, Bond Counsel expresses no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition, the extent to which interest on the Bonds is included in adjusted current earnings for the purposes of computing the federal alternative minimum tax imposed on certain corporations and various withholding requirements.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits tax, life insurance companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding any collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors regarding collateral federal income tax consequences.
Payments of interest on tax-exempt obligations such as the Bonds, are in many cases required to be reported to the Internal Revenue Service (the “IRS”). Additionally, backup withholding may apply to any such payments made to any owner who is not an “exempt recipient” and who fails to provide certain identifying information. Individuals generally are not exempt recipients, whereas corporations and certain other entities generally are exempt recipients.
Bond Counsel gives no assurance that any future legislation or clarifications of amendments to the Internal Revenue Code of 1986, as amended (the “Code”), if enacted into law, will not cause the interest on the Bonds to be subject, directly or indirectly,
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to federal income taxation, or otherwise prevent owners of the Bonds from realizing the full current benefit of the tax status of the interest on the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal legislation, as to which Bond Counsel expresses no view.
Bond Counsel’s opinion is not a guarantee of result and is not binding on the IRS; rather, the opinion represents Bond Counsel’s legal judgment based on its review of existing law and in reliance on the representations made to Bond Counsel and the University’s compliance with its covenants. The IRS has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations is includable in gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS will commence an audit of the Bonds. Owners of the Bonds are advised that, if the IRS does audit the Bonds, under current IRS procedures, at least during the early stages of an audit, the IRS will treat the University as the taxpayer, and the owners of the Bonds may have limited rights to participate in the audit. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.
Not Qualified Tax-Exempt Obligations. The Bonds are not “qualified tax-exempt obligations” within the meaning of Section 265(b)(3)(B) of the Code.
Original Issue Premium. An amount equal to the excess of the purchase price of a Bond over its stated redemption price at maturity constitutes premium on that Bond. A purchaser of a Bond must amortize any premium over that Bond’s term using constant yield principles, based on the Bond’s yield to maturity. As premium is amortized, the purchaser’s basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the purchaser. This will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Bond prior to its maturity. Even though the purchaser’s basis is reduced, no federal income tax deduction is allowed. Purchasers of Bonds at a premium, whether at the time of initial issuance or subsequent thereto, should consult their tax advisors with respect to the determination and treatment of premium for federal income tax purposes and the state and local tax consequences of owning such Bonds.
Original Issue Discount. The initial public offering price of certain Bonds (the “Original Issue Discount Bonds”) is less than the stated redemption price at maturity. In such case, the difference between (i) the stated amount payable at the maturity of an Original Issue Discount Bond and (ii) the initial public offering price of that Original Issue Discount Bond constitutes original issue discount with respect to that Original Issue Discount Bond in the hands of the owner who purchased that Original Issue Discount Bond at the initial public offering price in the initial public offering of the Bonds. The initial owner is entitled to exclude from gross income (as defined in Section 61 of the Code) an amount of income with respect to an Original Issue Discount Bond equal to that portion of the amount of the original issue discount allocable to the period that such Original Issue Discount Bond continues to be owned by the initial owner.
In the event of the redemption, sale or other taxable disposition of an Original Issue Discount Bond prior to its stated maturity, however, the amount realized by the initial owner in excess of the basis of the Original Issue Discount Bond in the hands of its initial owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Bond was held by the initial owner) is includable in gross income. Purchasers of Original Issue Discount Bonds should consult their tax advisors regarding the determination and treatment of original issue discount for federal income tax purposes and the state and local tax consequences of owning Original Issue Discount Bonds.
INITIATIVE AND REFERENDUM
Under the State Constitution, the voters of the State have the ability to initiate legislation through the power of initiative and referendum. Initiatives and referenda are submitted to the voters upon receipt of petitions signed by at least eight percent (initiatives) and four percent (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatorial election. Qualifying initiatives to the voters are submitted at the next state general election and must be approved by a majority of voters to be enacted into law. Initiatives to the Legislature are submitted to the Legislature at its regular session each January. Once submitted, the Legislature must either adopt the initiative as proposed, reject the proposed initiative (in which case the initiative must be placed on the ballot at the next state general election) or approve an amended version of the proposed initiative (in which case both the amended version and the original proposal must be placed on the next state general election ballot). Any initiative approved by a majority of voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two–thirds of all the members elected to each house of the Legislature; after two years, the law is subject to amendment or repeal by the Legislature in the same manner as other laws.
In recent years there have been a number of initiatives filed in the State, including initiatives targeting fees and taxes imposed by local jurisdictions or subjecting local jurisdictions to additional requirements. The University cannot predict whether this trend will continue, whether any filed initiatives will receive the requisite signatures to be certified to the ballot, whether such initiatives will be approved by the voters, whether, if challenged, such initiatives will be upheld by the courts, and whether any future initiative could have a material adverse impact on the University.
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CONTINUING DISCLOSURE UNDERTAKING
In accordance with Section (b)(5) of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time (the “Rule”), the University will agree to provide or cause to be provided to the Municipal Securities Rulemaking Board (“MSRB”), the following annual financial information and operating data for the prior fiscal year (commencing in 2013 for the Fiscal Year ended June 30, 2012).
Annual financial statements, which statements may or may not be audited, showing ending fund balances for the University prepared in accordance with generally accepted accounting principles (“GAAP”) and follow the guidance given by the GASB and generally of the type included in this Official Statement in the table “Western Washington University Recreation Center Statement of Revenues, Expenses and Changes in Net Assets;” and in Appendix C, “Audited Financial Statements of the University.” Additionally, the University will provide operating data generally of the type included in this Official Statement in the table “Schedule of Student Recreation Fee Revenue Bond Debt Service,” and in Appendix A, under the following headings:
1) the Table entitled “Average Annual Enrollment;” 2) the Table entitled “Enrollment Statistics – Fall Quarter;” 3) the Table entitled “Academic Year Tuition and Fees;” 4) the Table entitled “Western Washington University Statement of Revenues, Expenses, and Changes in Net Assets;” 5) the Table entitled “University Operating Budget;” 6) the Table entitled “Investments at Fair Market Value;” 7) the contribution and covered payroll for the WWURP under “Pension Plans;” and 8) the contribution rates table and total employer contributions for PERS, TRS and LEOFF, under “Pension Plans;”
Each of the above items shall be required only to the extent that such information is not included in the annual financial statements of the University. However, the University reserves the right to change the format of such annual information to reflect any changes in reporting formats or accounting policies which may be required due to changes in GAAP.
Such annual information and operating data described above will be so provided on or before the end of nine months after the end of the University’s fiscal year. The University may adjust such date if the University changes its fiscal year by providing written notice of the change of fiscal year to the MSRB. The University’s current Fiscal Year ends on June 30. In lieu of providing such annual financial information and operating data, the University may cross-reference to other documents available to the public on the MSRB’s internet website or filed with the Securities and Exchange Commission.
If not provided as part of the annual financial information discussed above, the University will provide its audited annual financial statements prepared in accordance with GAAP when and if available to the MSRB.
Material Events. The University agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the occurrence of any of the following events with respect to the Bonds, not in excess of ten business days after the occurrence of the event:
(1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of
taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material or events affecting the tax status of the Bonds;
(7) Modifications to the rights of Bondholders, if material; (8) Optional, contingent or unscheduled Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution or sale of property, securing the repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership or similar event of the University; (13) The consummation of a merger, consolidation, or acquisition of the University or the sale of all or
substantially all of the assets of the University, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement to undertake such an action, other than pursuant to its terms, if material; and
(14) Appointment of a successor or additional trustee or the change of name of the trustee, if material.
Solely for purposes of information, but without intending to modify its undertaking, with respect to the notice regarding property securing the repayment of the Bonds, the University advises that no credit enhancement, property or reserve secures repayment of the Bonds. The University shall promptly determine whether the events described above are material.
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Notification Upon Failure to Provide Financial Data. The University will agree to provide or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the annual financial information described above in this section on or prior to the date set forth above.
EMMA; Format for Filings with the MSRB. Until otherwise designated by the MSRB or the Securities and Exchange Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB’s Electronic Municipal Market Access system (“EMMA”), currently located at www.emma.msrb.org (which is not incorporated into this Official Statement by reference). All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB.
Termination/Modification. The University’s obligations to provide notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. Any provision of this section shall be null and void if the University (1) obtains an opinion of nationally recognized bond counsel to the effect that the portions of the Rule that requires this section or any such provision are invalid, have been repealed retroactively or otherwise not apply to the Bonds, and (2) notifies the MSRB of such opinion and the cancellation of this section. The University may amend its undertaking with an approving opinion of nationally recognized bond counsel in accordance with the Rule.
In the event of any amendment of or waiver of a provision of the University’s undertaking, the University will describe such amendment in the next annual report, and will include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the University. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (a) notice of such change will be given in the same manner as for a material event, and (b) the annual report for the year in which the change is made will present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.
Bondowner’s Remedies Related to Continuing Disclosure Undertaking. A Bondowner’s or a Beneficial Owner’s right to enforce the provisions of the University’s undertaking described in this section will be limited to a right to obtain specific enforcement of the University’s obligations, and any failure by the University to comply with the provisions of this undertaking will not be an event of default with respect to the Bonds under the Resolution. For purposes of this section, “Beneficial Owner” means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories.
Continuing Disclosure Undertakings of the University. The University has entered into prior undertakings under the Rule with respect to its obligations and is in compliance with its obligations thereunder.
OTHER BOND INFORMATION
Ratings
Ratings of A1 and A+ have been assigned to the Bonds by Moody’s Investors Service (“Moody’s) and Standard & Poor’s Ratings Services (“S&P”), respectively. Such ratings reflect only the views of the rating organizations and an explanation of the significance of the ratings may be obtained from the rating agencies Moody’s Investors Service and Standard & Poor’s Ratings Services. There is no assurance that the ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by the rating agencies if, in the judgment of the agencies, circumstances so warrant. An explanation of the significance of the rating may be obtained from Moody’s, 7 World Trade Center, 250 Greenwich Street, New York, NY 10007, (212) 553-0300, and from S&P, Public Finance Department, 55 Water Street, New York, New York, 10041, (212) 438-7280. Any such downward revision or withdrawal of any of the ratings may have an adverse effect on the market price of the Bonds.
Financial Advisor
SDM Advisors, Inc. has served as Financial Advisor to the University relative to the preparation of the Bonds for sale, timing of the sale and other factors relating to the Bonds. The Financial Advisor has not audited, authenticated or otherwise verified the information set forth in this Official Statement or other information provided relative to the Bonds. SDM Advisors, Inc. makes no guaranty, warranty or other representation on any matter related to the information contained in the Official Statement. The Financial Advisor is an independent financial advisory firm and is not engaged in the business of underwriting, marketing, trading or distributing municipal securities. A portion of the Financial Advisor’s compensation is contingent upon the sale of the Bonds and delivery thereof to the Underwriter.
Underwriter
The Bonds are being purchased by Citigroup Global Markets Inc., (the “Underwriter”) at a price of $24,811,061.41. The Bonds will be re-offered at a price of $25,243,527.80. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the initial offering prices set forth on
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cover hereof, and such initial offering prices may be changed from time to time by the Underwriter. After the initial public offering, the public offering prices may be varied from time to time.
Official Statement
Statements in this Official Statement, including matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the University or the Underwriters and the Owners of the Bonds.
At the time of the delivery of the Bonds, one or more officials of the University will furnish a certificate stating that to the best of his knowledge and belief at the time of the sale or delivery of the Bonds, this Official Statement and information furnished by the University supplemental hereto did not and do not contain any untrue statements of material fact or omit to state a material fact necessary in order to the statements made, in light of the circumstances under which they were made, not misleading in any material respect.
The preparation and distribution of this Official Statement has been authorized by the University.
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A-1
APPENDIX A Western Washington University
THE UNIVERSITY
The University is one of six public, four-year institutions of higher education in the state of Washington (the “State”). In 1893 Governor John H. McGraw signed legislation creating New Whatcom Normal School, which later became Western Washington College of Education in 1937, Western Washington State College in 1961, and achieved university status in 1977. Since the first class of 88 students entered in 1899, the school has grown into a comprehensive university of over 14,800 full and part-time students, making it the third largest institution of higher education in the State.
The University is located in Bellingham, a city of 81,070 that overlooks Bellingham Bay and many of Puget Sound’s 172 San Juan Islands. The University is located 90 miles north of Seattle, 55 miles south of Vancouver, British Columbia, and within a one hour drive from the recreational ski area on 10,778-foot Mount Baker. The University is the second largest employer in Whatcom County.
The main campus of the University, including Sehome Arboretum (38 acres), measures 212 acres. Off-campus sites include the Shannon Point Marine Center in Anacortes (87 acres), Lakewood Recreational Center on Lake Whatcom (15 acres), Whatcom County property utilized for environmental/aquatic analysis (25 acres), administrative offices owned near the Sehome Village Shopping Center, and various other smaller parcels of land.
The University’s facilities include 55 academic and support buildings, eight auxiliary buildings, and 35 residential housing/food service facilities. Academic facilities, both on and off the main campus, total roughly 2.2 million square feet of gross enclosed area, and the academic/service support functions and residential/food facilities add approximately 1.2 million additional square feet of enclosed area. The University offers extended education which provides students the opportunity to complete their degree through evening or distance education options; the University collaborates with colleges, departments and the community to provide the same high standards of quality for which the University is known. The University offers evening degree programs at five sites in western Washington: Bellingham, Bremerton, Everett, Port Angeles and Seattle.
The University was ranked third for public universities in the 14-state western region, according to the 2011 and 2012 U.S. News & World Report college rankings, and as the highest ranking public master’s granting university in the Pacific Northwest, according to the 2011 U.S. News & World Report college rankings. The Carnegie Foundation for the Advancement of Teaching has granted the University its Community Engagement classification, for its efforts to operate community outreach programs, deepen students’ civic and academic learning and enhance overall community well being.
Academic Programs
The University is a liberal arts institution. The University offers over 160 academic programs in its eight colleges, which include the College of Humanities and Social Sciences, College of Sciences and Technology, College of Business and Economics, Fairhaven College of Interdisciplinary Studies, College of Fine and Performing Arts, Huxley College of the Environment, Woodring College of Education, and the Graduate School. The University offers seven masters programs, including masters in teaching, arts, business administration, education, music, professional accounting and science.
Accreditation
The University is accredited by (i) the Northwest Association of Schools and Colleges, (ii) the National Association of Schools of Music, (iii) the National Recreation and Parks Association, (iv) the American Speech and Hearing Association, (v) the National Council for Accreditation of Teacher Education, (vi) the Computing Sciences Accreditation Board, (vii) the Technology Accreditation Commission of the Accreditation Board for Engineering and Technology, (viii) the American Assembly of Collegiate Schools of Business, (ix) the Council for Accreditation of Counseling and Related Education Programs, (x) National Association of Schools of Arts and Design, and (xi) the American Chemical Society.
Governance
The University is governed by an eight-member Board of Trustees (the “Board”), which has broad responsibilities to supervise, coordinate, manage and regulate the University, as provided by State law. Trustees are appointed by the Governor for a term of six years, except a student Trustee, who is appointed to a one-year term. In addition to other powers and duties, the Board employs the President; has full control of the University and its property of various kinds except as otherwise provided by law; with the assistance of the faculty, prescribes the course of study in the various schools and departments thereof, and publish such catalogues thereof as the Board deems necessary; establishes divisions, schools, or departments necessary to carry out the purposes of the University and not otherwise proscribed by law; may acquire real and other property; may purchase supplies and purchase or lease equipment and other personal property needed for the operation or maintenance of the University; and may promulgate such rules and regulations, and perform all other acts not forbidden by law, as the Board deems necessary or appropriate to the administration of the University.
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Current members of the Board are shown in the following table.
Members of the Board of Trustees
Individual
Professional Affiliation
Year of Initial Appointment
Expiration of Term
Dennis Madsen, Chair CEO, Recreational Equipment, Inc. - retired 2004 9/30/2013 Ralph Munro, Vice-Chair Secretary of State – retired 2009 9/30/2015 Betti Fujikado, Secretary Co-Founder, Copacino + Fujikado, LLC 2009 9/30/2012 Karen Lee CEO Pioneer Human Services 2010 9/30/2016 Philip E. Sharpe, Jr. Attorney & Partner of Adelstein, Sharpe, Serka 2002 9/30/2012 Dick Thompson University of Washington - retired 2002 9/30/2015 Jacob Whitish Student Trustee 2011 6/31/2012 Peggy Zoro Sr. VP & Regional Manager, Wells Fargo Bank 2003 9/30/2014
Officers of the Board of Trustees
Dennis Madsen, Chair, was first appointed to the Board in 2004 and reappointed, with a current term ending in 2013. Mr. Madsen is a former president and chief executive officer of Recreational Equipment, Inc. (REI), a national retail cooperative of outdoor gear and clothing. During his 38-year career with REI, he held several leadership positions including executive vice president and chief operating officer. Mr. Madsen earned his bachelor’s degree in mechanical engineering from Seattle Pacific University and pursued MBA studies at Pacific Lutheran University.
Ralph Munro, Vice Chair, was appointed to the Board in 2009 with a current term ending in 2015. Mr. Munro was elected as Secretary of State in 1980, and served the State in that position until retirement in 2001. Prior to that time he worked for the State House of Representatives, the State’s Governor and the Federal government, in Washington D.C. Mr. Munro earned his bachelor’s degree from the University.
Betti Fujikado, Secretary, was appointed to the Board in 2009 with a current term ending in 2012. Ms. Fujikado is the co-founder of Copacino+Fujikado, an advertising agency. She previously held executive positions from CFO, COO to CEO at a number of companies, after starting her career as an accountant. Ms. Fujikado earned her bachelor’s degree in business administration from the University of Washington with an emphasis in accounting.
University Administration
The University is administered by a President, who is appointed by the Board to act as the chief executive officer of the University. The President leads the University in development and fulfillment of institution-wide goals and its long-term strategic plan. The President has appointed a team to assist in management of the University.
The University’s administrative officers are listed below.
Administrative Officers of the University
Individual
Office
Year Hired by the University
Year of Current Appointment
Dr. Bruce Shepard President 2008 2008 Stephanie Bowers Vice President for University Advancement/
Executive Director for WWU Foundation 2001 2002
Dr. Eileen V. Coughlin Senior Vice President and Vice President for Enrollment and Student Services
1994 1994 (1)
Dr. Catherine Riordan Provost/Vice President for Academic Affairs 2009 2009 Steve Swan Vice President for University Relations 2009 2009 Richard Van Den Hul Vice President for Business and Financial Affairs 2010 2010
(1) Dr. Coughlin has served as Vice President for Enrollment and Student Services since 1994, and in 2011 her title changed to reflect additional appointment as Senior Vice President.
Brief resumes for the President and Provost follow.
Dr. Bruce Shepard, President. Dr. Shepard was appointed as the University’s thirteenth president in 2008. Prior to his appointment, Dr. Shepard served as chancellor of the University of Wisconsin-Green Bay from 2001 through 2008. From 1995-2001, Dr. Shepard served as provost at Eastern Oregon University, where he was also a professor of political science. Prior to joining Eastern Oregon University, Dr. Shepard spent 23 years at Oregon State University, earning tenure as a faculty member in the Department of Political Science before moving into university administration. His administrative positions at Oregon State included state government liaison specialist, special assistant to the provost, assistant vice
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president for undergraduate studies and director of undergraduate academic programs. Dr. Shepard earned bachelor’s, master’s and doctoral degrees in Political Science from the University of California, Riverside.
Dr. Catherine Riordan, Provost/Vice President for Academic Affairs. Dr. Riordan was appointed as the University’s Provost and Vice President for Academic Affairs in August 2009. Prior to her appointment, Dr. Riordan served as the Vice Provost for Academic Affairs at Central Michigan University from 2001 to 2009 and Director of Management Systems at the University of Missouri-Rolla from 1991-2000. Dr. Riordan earned a B.S. in Social Welfare from Eastern Michigan University and a Ph.D. in Social Psychology from the State University of New York at Albany.
State Oversight of Higher Education
The State has had a single state postsecondary education planning agency since 1975, as required to qualify for Federal planning and other funds (though the State has had various councils or boards to assist in providing oversight of higher education since 1969). The purpose of the agency is to provide planning, coordination, monitoring, and policy analysis for higher education in the State in cooperation and consultation with the State’s higher education institutions, their governing boards and other segments of postsecondary education.
From 1985 to present, that agency has been the Higher Education Coordinating Board (the “HECB”). In addition to the duties described, the HECB also administered student financial assistance programs and various federal programs. In 2012, the State Legislature adopted legislation (E2SHB 2483), signed by the Governor on March 30, 2012, which amends statutes enacted in 2011 that eliminate the HECB as of July 1, 2012 and divide the HECB’s duties among: (1) a newly created Office of Student Financial Assistance (the “SFA”) to administer all state and federal financial aid and the State’s advanced college tuition payment program; and (2) a newly created Student Achievement Council (the “Council”) with duties similar to the HECB, including proposing statewide goals and priorities for higher education, tracking progress, conducting research and analysis, identifying transition issues and solutions, protecting higher education consumers, directing the SFA, and advocating for higher education. Until July 1, 2012, the HECB is to continue to prioritize capital projects for the higher education system, after which date the legislation transfers this function to the State’s Office of Financial Management. Excepting the student financial aid and capital projects functions discussed above, the HECB powers, duties, resources, staff, and records will be transferred to the new Council.
Faculty, Employees and Labor Relations
As of November 15, 2011, the University has 1,419 full-time equivalent (“FTE”) employees and 2,500 part-time/temporary employees, including 1,828 student employees.
The following shows the number of full and part-time instructional faculty, percentage tenured, and degree status.
Instructional Faculty, Tenure and Degrees
Instructional Faculty
Fall 2011
Fall 2010
Fall 2009
Fall 2008
Fall 2007
Full-time Instructional Faculty 501 504 513 522 505 Part-time Instructional Faculty 286 302 295 286 Total Instructional Faculty
232 787 806 808 808 737
Percent of full-time faculty tenured 67.7% 67.5% 65.3% 64.0% 66.5% Percent of full-time faculty with PhD or Terminal Degree 82.4% 83.6% 81.8% 83.6% 89.9% Percent of total faculty with PhD or Terminal Degree 69.4% 67.0% 65.1% 67.2% 70.1%
The University’s classified employees are represented by two unions, the Washington Federation of State Employees (the “WFSE”), representing 456 employees, and the Public School Employees union (the “PSE”), representing 314 employees. In accordance with the State’s Personnel System Reform Act and RCW 41.80, the University negotiates two-year contracts with the unions, which require ratification of the union membership, and submission to the State Legislature for funding. The University was initially unable to reach an agreement for the 2011-2013 biennium, so the terms and conditions from the 2009-2011 biennial contract continued until agreement was reached for the 2012-2013 fiscal year. Negotiations will begin in spring 2012 for the 2013-2015 contracts which must be submitted to Office of Financial Management for review of financial feasibility by October 1, 2012.
The University’s faculty is represented by the United Faculty of Western Washington (the “UFWW”). In June 2008 the University and the UFWW completed negotiations of their first contract, which extended through July 1, 2011, and was subsequently continued through the end of 2011. Negotiations for a successor agreement began in January 2012, and are currently underway.
University management considers relations with all categories of its employees to be good.
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Student Enrollment
Approximately 92 percent of the University’s students are State residents. Approximately 31 percent of students are from King County, followed by Snohomish, Whatcom and Pierce counties, which together make up 64 percent of students. Additionally, the student body includes residents from 48 other states and the District of Columbia, led by California, Oregon, Colorado and Alaska. International students come from 39 other nations, led in number by Japan, Canada and Vietnam.
Historically, the highest share of the University’s students enters directly from high school and, therefore, the campus is characterized by a young student body with an average age of 21 for undergraduates. Most students enrolled at the University are full-time students. For Fall 2011, the average grade point average (“GPA”) for entering freshmen was 3.5 and the average GPA for transfer students was 3.2. The following shows average annual enrollment, by FTE and headcount, for the current and five prior academic years.
Average Annual Enrollment (1)
Year FTE
Enrollment Headcount
Enrollment 2011-12 (2) 13,383 14,297 2010-11 13,314 14,367 2009-10 13,038 14,079 2008-09 13,010 14,045 2007-08 12,782 13,836 2006-07 12,645 13,676
(1) Includes students enrolled in distance and evening degree programs. (2) Average annual enrollment for 2011-12 is estimated, based on Fall and Winter quarter actual.
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The following table shows graduate and undergraduate headcount enrollment, and freshman and transfer applications and acceptances, based on fall quarter enrollment for each of the past five years.
Enrollment Statistics – Fall Quarter
Fall 2011 Fall 2010 Fall 2009 Fall 2008 Fall 2007 Fall Quarter Enrollment (Headcount) Undergraduates
Seniors 4,270 4,021 3,871 3,997 3,774 Juniors 3,607 3,717 3,418 3,354 3,601 Sophomores 2,569 2,687 2,673 2,550 2,397 Freshmen 3,239 3,228 3,287 3,335
Total Undergraduates 3,195
13,685 13,653 13,249 13,236 12,967 Graduates and Post-Baccalaureates
Graduates 721 757 786 804 780 Post-Baccalaureates 338 413 393 410
Total Graduates and Post-Baccalaureates 397
1,059 1,170 1,179 1,214 1,177 Non-Matriculated 98 156 147 170
Total Headcount Enrollment
132
14,842 14,979 14,575 14,620 14,276
Fall Quarter Enrollment (FTE) 13,910 13,851 13,555 13,527 13,180 Freshmen Applications and Enrollment
Applications 9,083 9,336 9,621 9,520 8,850 Offered 7,118 6,896 6,990 6,752 6,447 Percent of Applications Offered 78 % 74% 73% 71% 73% Enrolled 2,695 2,748 2,689 2,697 2,586 Enrolled Percent of Admissions 38% 40% 38% 40% 40%
Transfer Students Applications and Enrollment
Applications 2,648 2,459 2,419 2,140 2,142 Offered 1,555 1,424 1,415 1,488 1,506 Percent Applicants Offered 59% 58% 58% 70% 70% Enrolled 949 924 892 972 1,003 Enrolled as a Percent of Admissions 61% 65% 63% 65% 67%
Tuition and Fees
The State Legislature authorizes the public institutions of higher education to set tuition rates. For the 2011-13 biennium, the State Legislature granted flexibility to public universities to set tuition levels for resident undergraduates, without limitation, while creating new requirements that increase the amount of financial aid to be funded from revenues from the operating portion of tuition fees from 3.5 percent to 4.0 percent. Prior to the 2011-2013 biennium, the State Legislature prescribed a maximum allowable rate of tuition increase for various public institutions. The State Legislature also granted flexibility to public universities to set tuition levels for graduate and non-resident undergraduate students. The University prepares tuition rate proposals for the upcoming fiscal year, for consideration and approval by the Board. There are two components of fees: tuition (consisting of building fees and operating fees) plus service and activities (“S&A”) fees, some of which are State-mandated, and some of which are approved based on recommendations from students, through a formal process. The University increased tuition by 16 percent for fiscal years 2012 and 2013. S&A and other mandatory fees were unchanged or were increased by various, lower, percentages.
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Resident and non-resident tuition and fees for the current academic year, and the four prior academic years are shown below. This information includes the building fee and operating fee components of tuition and State-mandated S&A fees, which excludes the SRC Fee.
Academic Year Tuition and Fees
Undergraduate Students Graduate Students Academic Year Resident Non-Resident Resident Non Resident
2011-12 $6,973 $17,320 $7,445 $17,125 2010-11 6,081 16,428 6,567 16,242 2009-10 5,397 16,428 6,567 16,242 2008-09 4,788 16,419 6,558 16,233 2007-08 4,568 15,642 6,252 16,216
Comparative Tuition and Fees for Academic Year 2011-12 Washington State Public Universities/Colleges
Resident Undergraduate
Resident Graduate
University of Washington $10,100 $12,424 Washington State University 9,886 10,188 Central Washington University 7,050 8,112 Western Washington University 6,973 7,445 The Evergreen State College 6,909 7,568 Eastern Washington University 6,689 8,931
Source: Higher Education Coordinating Board, 2011-12 Tuition and Fee Rates
Student Financial Aid and Scholarships
A total of 9,459 financial aid recipients received $120.8 million in financial aid during 2010-2011. In addition to the disbursements outlined below, 1,981 students earned an estimated $7.9 million in wages in the Bellingham community, through part-time employment obtained through the University Federal Job Location and Development Program.
Summary of Financial Aid
2010-2011 Percent of Totals 2009-2010 Percent of Totals Funding Source Federal $ 83,837,377 69.4% $ 77,089,247 68.8% State 11,010,335 9.1 11,811,589 10.6 Institutional 19,917,442 16.5 17,673,572 15.8 Private Donor/Other 6,036,905 5.0 5,420,648
Total 4.8
$120,802,059 100.0% $111,995,056 100.0%
Programs Grants $ 31,512,261 26.1% $ 28,233,682 25.2% Scholarships 9,890,186 8.2 8,496,998 7.6 Employment 8,428,926 7.0 9,053,390 8.1 Loans 70,970,686 58.7 66,210,986
Total 59.1
$120,802,059 100.0% $111,995,056 100.0%
Beginning in fiscal year 2012, the University is required by the State Legislature to reserve at least 4 percent of tuition operating fees for college-based student scholarships and assistance (up from 3.5 percent previously). Although State allocation for the State Need Grant and State Work-study funding has diminished over the past several years, the programs continue to provide critical support to certain students.
The majority of the University’s students have repaid their federal student loans in a timely manner, as evidenced by the University’s low default rates for the last several fiscal years. The University’s official cohort default rate for the William D. Ford Federal Direct Loan Program was 1.2 percent for fiscal year 2009 (the most recent year for which data is available) and 1.4 percent for fiscal year 2008, substantially below the 25 percent rate which would endanger the ability of an institution to participate in federal student loan programs. The University’s Financial Aid department is a long-standing participant in the
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Federal Quality Assurance Program, to assure that the delivery of student aid funds is conducted accurately, expediently, and with integrity.
FINANCIAL OPERATIONS Basis of Accounting
The financial statements of the University are presented in accordance with generally accepted accounting principles (“GAAP”) following guidance given by the Governmental Accounting Standards Board (“GASB”). For financial reporting purposes, the University is considered a special-purpose government engaged only in business-type activities. As defined by GAAP, the financial reporting entity consists of the University, as well as its component unit, the Western Washington University Foundation, described below. The Statement of Revenues, Expenses and Changes in Net Assets from the audited financial statements for the five most recent fiscal years is shown below.
Western Washington University Statement of Revenues, Expenses, and Changes in Net Assets (1)
For Fiscal Years Ended June 30
2011 2010 2009 2008 2007 Operating Revenues Student tuition and fees (2) $106,569,013 $ 94,533,107 $ 86,555,613 $ 81,217,433 $ 76,176,650 less tuition discounts (18,363,862) (14,833,867) (12,982,879) (12,215,513) (10,687,587) Federal grants and contracts 8,268,690 6,639,781 8,338,523 11,272,466 17,033,926 State and local grants and contracts 13,319,279 13,953,989 13,257,130 12,595,085 12,303,871 Nongovernmental grants and contracts 2,357,881 1,969,470 1,752,564 1,264,074 1,387,721 Sales and services of educational activities and other 4,956,121 4,922,961 2,229,928 4,836,640 3,240,086 Interest earned on loans to students 140,522 144,792 136,800 136,871 144,086 Auxiliary enterprises (2) 55,375,031 52,947,114 53,481,768 50,334,001 47,663,899 less auxiliary discounts (4,718,356) (4,115,218) (3,856,618) (3,452,539) Total operating revenue
(2,973,160) $167,904,319 $156,162,129 $148,912,829 $145,988,518 $144,289,492
Operating Expenditures Salaries and wages $117,885,280 $118,163,753 $119,402,233 $114,509,642 $105,961,453 Benefits 36,692,598 34,181,520 31,713,625 33,268,166 30,468,850 Scholarships and fellowships 17,805,709 17,634,179 14,675,348 14,527,102 14,002,459 Utilities 5,638,304 5,515,941 6,126,735 6,340,414 6,548,415 Supplies and materials 43,890,835 41,794,644 41,053,047 38,674,456 39,537,729 Purchased and personal services 4,246,383 4,362,892 5,008,483 5,505,286 5,261,560 Depreciation 18,070,849 16,336,531 14,581,784 13,639,067 Total operating expenses
13,388,100 $244,229,958 $237,989,460 $232,561,255 $226,464,133 $215,168,566
Operating income (loss) $(76,325,639) $(81,827,331) $(83,648,426) $(80,475,615) $ (70,879,074) Non-operating Revenues(Expenses) State appropriations $ 63,760,769 $ 64,621,417 $ 78,535,426 $ 75,417,882 $ 64,481,771 Federal Pell Grant Revenue 13,887,899 11,458,908 7,658,503 6,868,173 - Investment income 775,087 1,188,261 4,706,526 5,892,772 6,095,800 Interest on indebtedness (4,061,271) (4,156,297) (3,491,660) (3,607,772) (3,677,177) Gains (Loss) on endowments 1,684,904 516,960 (978,004) (668,488) 826,223 Non-operating rental property income 7,118 15,490 201,443 26,143 Net Non-operating revenues (expenses)
9,778 $ 76,054,506 $ 73,644,739 $ 86,632,234 $ 83,928,710 $ 67,736,395
Income or (loss) before other revenues, expenses, gains, or losses $ (271,133) $ (8,182,592) $ 2,983,808 $ 3,453,095 $ (3,142,679) Capital appropriations 24,166,239 27,609,379 14,839,312 44,268,118 16,526,811 Other capital revenue 3,229,426 4,014,907 2,562,413 - - Gifts to permanent endowments - 50,000 550,000 10,000 Total other revenues
100,000 $ 27,395,665 $ 31,674,286 $ 17,951,725 $ 44,278,118 $ 16,626,811
Increase (Decrease) in net assets $ 27,124,532 $ 23,491,694 $ 20,935,533 $ 47,731,213 $ 13,484,132 Net assets, beginning of year $409,788,893 $386,297,199 $365,361,665 $317,630,452 $304,146,320 Net assets, end of year $436,913,425 $409,788,893 $386,297,198 $365,361,665 $317,630,452 (1) Information is based on audited financial statements of the University. (2) Beginning in 2008 (and restated for 2007) a component of tuition is recorded as auxiliary enterprise revenue. In prior years, all tuition
was recorded as student tuition and fees, despite a component being used for auxiliary purposes.
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Auditing
The University’s Financial Statements and selected auxiliary units are audited annually by the State Auditor’s Office, which provides an opinion on the financial statements. The auditor’s opinion on the University and auxiliary financial statements is unqualified for the period ending June 30, 2011.
The State Auditor’s Office also performs accountability audits to provide reasonable assurance of the University’s compliance with legal requirements and to determine if adequate internal controls are in place. Prior to fiscal year 2011, the State Auditor’s Office conducted compliance and accountability audits on an annual basis. Beginning with fiscal year 2011 the State Auditor’s Office is conducting compliance and accountability audits for individual universities less frequently and changing to compliance and accountability reviews of consistent areas across the public institutions of higher education. In recent years, the University has had no audit findings.
In addition, the State Auditor’s Office performs an annual audit of federal grant expenditures for the State as required by the Single Audit Act. This audit is performed on a statewide basis and includes major federal programs at the University if selected for audit.
State Funding for the University
The University is one of six public universities in the State, and has traditionally received significant State funding for operations and capital projects. Due to economic and financial stress over recent years, the State’s level of funding has declined over the past three biennia. The Board has responsibility under State law for submitting a biennial budget plan for operations, as well as a list of prioritized capital project needs for which it is seeking funding, to the Governor for submission to the State Legislature.
State Funding for Operations. The State Legislature determines a budgeted level of operating support each year based on student FTE enrollment for each institution of higher education in the State. An institution may exceed the budgeted enrollment level but will not receive additional State funding for additional enrollment, in which case any additional cost must be borne by the institution. The State considers one FTE student to be an undergraduate carrying 15 credits or a graduate student with 10 credits. The level of funding for budgeted enrollment is determined by the State Legislature each year, and has declined in recent years. Historically, the State has provided operating support for academic buildings, based on a formula relating to estimated square footage of academic facilities, although the amount funded under the formula has declined in recent years.
Historically, enrollment demand at the University has exceeded State-budgeted enrollment level. The following table shows budgeted and actual enrollment for the University, for the current year and the prior five years.
State Funded Budgeted Versus Actual Enrollment Annual Average FTE
Fiscal Year Budgeted Actual Difference 2012 (1) 11,762 12,647 885 2011 11,762 12,647 885 2010 11,373 12,475 1,102 2009 12,175 12,408 233 2008 12,022 12,141 119 2007 11,729 11,784 55
(1) Actual annual average FTE enrollment for 2012, and resulting difference, is estimated only.
State budget adjustments may be made during subsequent legislative sessions, which modify the level of State funding support for the University’s operating budget. During the past three biennia, the State has made reductions to operating appropriations during the biennium, which required the University to make mid-year budget adjustments. While the State Legislature decreased funding for the University in recent biennia, it also provided the University with greater authority to increase tuition. In addition to increasing student tuition in recent years, the University has reduced the number of employees, eliminated programs, merged and consolidated units, and taken other actions to reduce operating expenditures.
The following table shows the history of operating budget appropriations to the University for the five most recent biennia, which information reflects any subsequent State budget reductions.
Historical State Appropriations for University Operating Budget
2011-13 Biennium
2009-11 Biennium
2007-09 Biennium
2005-07 Biennium
2003-05 Biennium
State Operating Appropriations $84,377,000 $117,121,000 $146,683,527 $127,691,000 $112,586,000
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State Funding for Capital Projects. The State has historically funded capital projects for construction or renovation of academic buildings and minor capital improvements for the University in its capital budget. The University has historically funded capital projects for auxiliaries or student facilities with auxiliary revenues or special revenue bonds, which do not require State funding or approval. Prior to each biennium, the University provides a prioritized list of capital projects for which it is seeking State funding to the State’s Office of Financial Management, which is scored relative to capital project lists provided by other public higher education institutions. A ranked list of capital priorities for the public higher education institutions is presented to the Governor and the State Legislature. Major capital projects are generally reviewed by the State Legislature over a cycle of three biennia, with funding of the costs of pre-design, design and construction appropriated in sequential biennia. The following table shows the history of new capital budget appropriations to the University for the five most recent biennia.
Historical State Appropriations for University Capital Budget
2011-13 Biennium
2009-11 Biennium
2007-09 Biennium
2005-07 Biennium
2003-05 Biennium
State Capital Appropriations $28,291,000 $74,599,002 $47,610,002 $73,452,002 $32,464,330
University Operating Budget
The information below shows the University budget plan provided to the State for the 2009-11 and 2011-13 biennia, which reflect adjustments made during the biennial period. The biennial budget plans do not include auxiliary operations, which are separately budgeted.
University Operating Budget
Fund 2011-13 Biennium (1) 2009-11 Biennium (2) State General Fund $ 67,497,000 $ 89,505,000 Education Legacy Trust 13,266,000 12,917,000 Capital Projects Account 3,614,000 5,814,000 Federal Stimulus - Total State Appropriations
8,885,000 $ 84,377,000 $117,121,000
WWU Operating Fees Account 164,932,136 126,834,806 Local Fund 59,200,000 53,400,000 Grants and Contracts 80,000,000 Total Operating Funds
77,243,218 $388,509,136 $374,599,024
(1) Based on State General Funds currently appropriated by the State Legislature, and subject to change. (2) Based on actual State appropriations, after reductions during the biennium.
The following provides discussion for the University’s major budget sources, as shown in the table above.
State Appropriations. The State appropriated $84,377,000 and $117,121,000 of operating funds for the 2011-13 biennium and the 2009-2011 biennium, respectively. The State Legislature built the 2011-13 State appropriation budget based on an assumed 16 percent tuition increase for in-state undergraduate students in each of fiscal year 2012 and 2013, although the University has discretion to determine the actual level of increase in tuition. The State’s initial 2009-11 biennial budget provided funding of $121,428,000 for the University, which was subsequently decreased to $117,121,000. If the State continues to face budget challenges in the future, the State Legislature could reduce appropriations to the University for the current and future biennia.
WWU Operating Fees Account. Tuition Operating Fees represent the operating portion of the tuition charged to students attending the University, and investment income on the operating fees. Other than a set percentage of the operating fee that is mandated to be used for student financial aid (currently four percent), operating fees are budgeted and used for operation of the University, at the discretion of the Board, after appropriation by the State Legislature.
Local Fund. The Local Fund is used by the University to account for dedicated revenue sources, such as indirect cost reimbursement on sponsored research projects, institutional administrative fees, miscellaneous student fees and interest earnings, and self-sustaining program revenues, distance education, conferences, non-credit outreach courses, summer session tuition, and other sales of materials and services to university units or non-university customers.
Grants and Contracts. Federal and state grant programs provide the largest source of funding in this category of activity, including student work study programs. Revenue in this category, other than financial aid, scholarships and students loans, includes approximately $10 million in Federal research grants and other grants.
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Western Washington University Foundation and University Endowments
The University is supported by a private not-for-profit corporation, the Western Washington University Foundation (the “Foundation”). The Foundation is legally separate from the University, and acts as the University’s primary fundraising organization to supplement State and other funding. In addition to funds raised directly by the Foundation, all unrestricted gifts to the University, with the exception of those involving a State match of funds, are forwarded to the Foundation. Since July 2011, University endowment funds are held, invested and managed by the Foundation, together with the Foundation endowments, in accordance with the Foundation’s investment policies under direction of the Foundation’s Finance and Audit Committee. Total Foundation investments as of June 30, 2011 are $59,648,658, which includes $5,608,043 in donor restricted and unrestricted funds and $4,248,581 in quasi-endowments invested by the Foundation on behalf of the University.
The Foundation’s Finance and Audit Committee is comprised of ten members: two members are faculty and/or staff of the University, two or more are Foundation directors appointed by the President of the Foundation board, and the Treasurer of the Foundation board, who serves as the Chair of the committee. The Executive Director and Finance Officer of the Foundation serve as ex-officio members and do not have voting rights. Members of the committee work in professions ranging from banking to investment management to business development.
The Foundation has investment and spending policies relating to endowments and investments. The target asset allocation for endowment investments is 70 percent equity and 30 percent fixed income investments. The Foundation seeks investments within these broad categories that provide diversification and enhance fund returns. It is the policy of the Foundation to spending formula is weighted with a base of 4.5 percent and a three year rolling market value average.
During fiscal year 2011, the Foundation raised $4.7 million from 9,320 donors and earned approximately $7.6 million in investment gains. As of June 30, 2011, total net assets of the Foundation were $51.2 million, of which $22.2 million were permanently restricted and $16.8 million were temporarily restricted. Funds are used primarily for direct academic support and scholarships
Under GASB 39 criteria, the Foundation is an affiliated organization that meets the criteria for discrete presentation. The Foundation maintains separately audited financial statements, and the financial condition and activities are presented as a discretely reported component unit in the University’s financial statements.
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Investments
The University manages cash and investments centrally, and pools University operating funds for investment purposes. Funds such as bond and reserve funds, unexpended bond proceeds, and renewal and replacement funds for certain auxiliary enterprises are separately invested. The University’s investment policy is structured to limit exposure to fair value losses by limiting the duration of the portfolio. Prior to July 2011, the University managed investment of its endowment funds, pursuant to a separate investment policy, with the primary objective of achieving long term growth.
Investments at Fair Market Value
As of January 31, 2012 (1)
As of June 30, 2011
As of June 30, 2010
University Investment Pool Cash and cash equivalents $ 54,989,833 $35,101,160 $51,085,200 Certificates of deposit 6,007,900 6,000,000 18,650,063 U.S. Treasuries -0- 5,000,000 -0- U.S. Agencies 35,000,000 30,000,000 -0- University Endowment Funds Cash and cash equivalents 51,522 100,050 1,011,589 Fixed Income 1,729,447 1,887,625 2,331,691 Equity securities 5,637,612 6,332,456 4,657,981 Real estate 558,300 515,882 -0- Alternative investments 1,475,670 1,020,611 -0-
Other University Funds (2) Certificates of Deposit 1,493,498 2,977,258 2,812,169 State Treasurer’s LGIP 1,758,413 2,055,907 6,044,593 U.S. Agencies 1,525,000 -0- -0- Miscellaneous 1,010 1,010
Total
1,010
$110,228,205 $90,991,959 $86,594,296 (1) Information is unaudited. (2) Includes bond funds and reserves and unexpended bond proceeds.
State Normal School Permanent Fund
The University is a beneficiary of the State’s Normal School Permanent Fund (the “Permanent Fund”), established under RCW 43.79.160 as a permanent endowment fund, the earnings from which are invested and used for the benefit of the State’s four regional universities, including Central and Eastern Washington Universities, The Evergreen State College, and the University. The primary source of new principal for the Permanent Fund are revenues, primarily timber sales, from certain State lands granted to the State by the Federal government for state normal schools, and which are managed by the State’s Department of Natural Resources. The principal and revenue of the Permanent Fund are invested by the State Treasurer’s Office. For the year ending June 30, 2011, the University received $3,229,426 in earnings and distributions from the Permanent Fund, which is used for capital purposes of the University, after appropriation by the State Legislature.
Risk Management
The University participates in a State risk management self-insurance program. Premiums paid by the University to the State are based on actuarially determined projections and include allowances for payments of both outstanding and current liabilities. The University self-insures unemployment compensation for all employees. In addition, commercial insurance coverage for property casualty loss on the residence halls and the Wade King Student Recreation Center is maintained in accordance with the related bond resolutions.
Pension Plans
The University offers four contributory pension plans that cover eligible employees: (i) the Public Employees’ Retirement System (“PERS”), (ii) the Washington State Teachers’ Retirement System (“TRS”), (iii) the Law Enforcement Officers’ and Firefighters’ Retirement System (“LEOFF”) and (iv) the Western Washington University Retirement Plan (“WWURP”). Under these plans, the employee and employer contribute a percentage of the employee’s compensation. PERS, TRS and LEOFF are cost sharing, multiple-employer defined benefit public retirement plans administered by the State. An actuarial valuation of these plans for University employees is not available on a stand-alone basis. See Appendix C, Note 19, for additional discussion of the University’s pension plans.
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WWURP. The WWURP is a defined contribution pension plan with a supplemental payment, when required. The WWURP plan covers faculty, professional staff, and certain other employees and is administered by the University. The University’s Board is authorized to establish and amend benefit provisions. Contributions to the plan are invested in annuity contracts or mutual fund accounts offered by one or more fund sponsors. Benefits from fund sponsors are available upon separation or retirement at the employee’s option. Employees have at all times a 100 percent vested interest in their accumulations Employee contribution rates to WWURP are based on age, and range from 5 percent to 10 percent of salary. The University matches employee contributions to this plan, and all required contributions have been made.
The WWURP contributions for the year ending June 30, 2011, were $5,624,889 for employees and $5,612,217 for the University.
PERS, TRS and LEOFF. PERS I provides retirement and disability benefits, and minimum benefit increases beginning at age 66 to eligible non-academic plan members hired prior to October 1, 1977. PERS II and III provide retirement and disability benefits, and a cost-of-living allowance, to eligible non-academic plan members hired on or after October 1, 1977. In addition, PERS III has a defined contribution component, which is fully funded by employee contributions. PERS defined benefit plan benefits are vested after an employee completes five years of eligible service.
TRS I provides retirement and disability benefits, a lump sum death benefit, and minimum benefits increases beginning at age 65 to certain eligible faculty hired prior to October 1, 1977. TRS II and III provide retirement benefits, and cost-of-living allowance to certain eligible faculty hired on or after October 1, 1977.
In addition TRS III has a defined contribution component which is fully funded by employee contributions. Defined benefit plan benefits are vested after an employee completes five years of eligible service.
LEOFF II provides retirement benefits and a cost of living allowance for eligible law enforcement officers. LEOFF System benefits are vested after an employee completes five years of eligible service.
The Washington State Legislature establishes or amends benefit provisions for PERS, TRS, and LEOFF. Additional information concerning plan descriptions and benefit provisions is included in a Comprehensive Annual Financial Report publicly available from the Washington System Department of Retirement System, P.O. Box 48380, Olympia, WA, 98504.
The required contribution rates expressed as a percentage of covered payroll at June 30, 2011, were as follows:
Employee University PERS Plan I 6.00% 5.31% Plan II 3.90 5.31 Plan III 5% to 15% 5.31 TRS Plan I 6.00% 6.14% Plan II 3.36 6.14 Plan III 5% to 15% 6.14 LEOFF Plan II 8.46% 5.24%
The required contributions for the year ending June 30, 2011, were as follows:
Employee University PERS $1,466,592 $1,738,991 TRS 28,122 26,711 LEOFF 65,066 66,202
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Contributions rates for the University were updated effective July 1, 2011, and again, effective September 1, 2011. The current contribution rates, effective September 1, 2011, are shown in the table below.
Employee University PERS Plan I 6.00% 7.25% Plan II 4.64 7.25 Plan III 5% to 15% 7.25 TRS Plan I 6.00% 8.04% Plan II 3.37 8.04 Plan III 5% to 15% 8.04 LEOFF Plan II 8.46% 8.62%
Unfunded Pension Liabilities
The University makes direct supplemental payments to qualifying retirees when the retirement benefit provided by the plan sponsor does not meet the benefit goal set forth in the plan, based on a one-time calculation at each employee's retirement date. While the University will continue making supplemental payments required for qualifying retirees, this feature of the WWURP no longer applies for new employees hired after June 30, 2011. The University received an actuarial evaluation of the supplemental component of the WWURP during fiscal 2011, which determined the Unfunded Actuarial Accrued Liability as of June 30, 2011 was $10,035,000, which is amortized over a 13 year period. The evaluation established an Annual Required Contribution of $1,400,000. The actuarial assumptions included an investment rate of return of 6 percent to 8 percent and projected salary increases ranging from 2 percent to 4 percent. Approximately $72,672,927 of the University’s payroll was covered under this plan during fiscal year 2011.
Other Post Employment Benefits
Health care and life insurance programs for employees of the State are administered by the Washington State Health Care Authority (the “HCA”). The HCA calculates the premium amounts each year that are sufficient to fund the State-wide health and life insurance programs on a pay-as-you-go basis. These costs are passed through to individual state agencies based upon active employee headcount; the agencies pay the premiums for active employees to the HCA. The agencies may also charge employees for certain higher cost options elected by the employees.
The State retirees may elect coverage through state health and life insurance plans, for which they pay less than the full cost of the benefits, based on their age and other demographic factors.
The health care premiums for active employees, which are paid by the agency during employees’ working careers, subsidize the “underpayments” of the retirees. An additional factor in the Other Post Employment Benefits (“OPEB”) obligation is a payment that is required by the State Legislature to reduce the premiums for retirees covered by Medicare (an “explicit subsidy”). For fiscal 2011, this amount was $183 per retiree eligible for parts A and B of Medicare, per month. This is also passed through to State agencies via active employees rates charged to the agency.
There is no formal State or University plan that underlies the subsidy of retiree health and life insurance. An actuarial study performed by the State Office of the State Actuary calculated the total OPEB obligation of the State at July 1, 2011.
The actuary calculated the OPEB obligation based on individual state employee data, including age, retirement eligibility, and length of service. The probability of an employee of a given age and length of service retiring and receiving OPEB benefits is based on statewide historical data. Since sufficient specific employee data and other actuarial data are not available at levels below the statewide level, such amounts have not been determined nor recorded in the University’s financial statements. The State’s combined annual financial report can be obtained at: http://www.ofm.wa.gov/cafr/.
The University was billed and paid approximately $18.7 million for active and retiree health care expenses during fiscal year 2011 and $16.6 million in fiscal year 2010.
Funding Status of State Retirement Systems
While the University’s contributions in fiscal year 2011 represented its full current liability under PERS, TRS and LEOFF, any unfunded pension benefit obligations within the systems could be reflected in future years as higher contribution rates. The website of the Office of the State Actuary includes information regarding the values and funding levels of these retirement plans.
According to the 2010 Actuarial Valuation Report (the “Report”) prepared by the Office of the State Actuary, as of June 30, 2010, PERS Plans 2 and 3 and LEOFF Plan 2 had no unfunded actuarial accrued liability. According to the Report, the total
A-14
unfunded actuarial accrued liability of PERS Plan 1 is $3.238 billion and of TRS Plan 1 is $1.439 billion, each as of June 30, 2010. The assumptions used by the State Actuary in calculating unfunded liability are an 8 percent annual rate of investment return, 4 percent general salary increases and 3.5 percent inflation. Liabilities were valued using the “Projected Unit Credit” cost method and assets valued using the actuarial value of assets, which defers a portion of the annual investment gains or losses over a period of up to eight years.
Assets for one plan may not be used to fund benefits for another plan; however, all employers in PERS and all employers in TRS are required to make contributions at rates (percentage of payroll) determined by the Office of the State Actuary every two years for the purpose of amortizing within a rolling 10-year period the unfunded actuarial accrued liability in PERS Plan 1 and TRS Plan 1, respectively. The State Legislature in 2009 established certain maximum contribution rates that began in 2009 and continue until 2015 and certain minimum contribution rates that are to become effective in 2015 and remain in effect until the actuarial value of assets in PERS Plan 1 and in TRS Plan 1 equal 100 percent of their respective actuarial accrued liability. These rates are subject to change by future legislation enacted by the State Legislature to address future changes in actuarial and economic assumptions and investment performance.
In 2011, the State Legislature ended the future automatic annual increase, which is a fixed dollar amount multiplied by the member’s total years of service, for most retirees in PERS Plan 1 and TRS Plan 1. This action is expected to reduce the unfunded accrued actuarial liability in PERS Plan 1 and TRS Plan 1, although litigation challenging this legislation has been filed.
W
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WA
SHIN
GTO
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R
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LUTI
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NO
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2-01
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UN
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R
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LUTI
ON
NO
. 201
2-01
TAB
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F C
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Pa
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Sect
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Def
initi
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Se
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A
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Se
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2 Se
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2 Se
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Fo
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and
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......
......
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Sect
ion
7.
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enue
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Se
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44
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B-1
APPENDIX B The Bond Resolution
W
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WA
SHIN
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NIV
ERSI
TY
R
ESO
LUTI
ON
NO
. 201
2-01
A
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Febr
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and
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CW
28B
.15.
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to
issu
e an
d se
ll re
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ligat
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to
prov
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fund
s for
recr
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pro
vide
not
mor
e th
an $
2,50
0,00
0 of
net
Bon
d pr
ocee
ds (n
et
-2
-
of c
osts
of
issu
ance
) (th
e “I
mpr
ovem
ent
Bon
ds”)
in
orde
r to
obt
ain
long
ter
m f
inan
cing
for
addi
tions
, ren
ovat
ion
and
impr
ovem
ents
to re
crea
tiona
l fac
ilitie
s of t
he U
nive
rsity
; and
WH
EREA
S, th
e U
nive
rsity
has
out
stan
ding
its
Stud
ent R
ecre
atio
n Fe
e R
even
ue B
onds
,
Serie
s 20
02, i
ssue
d un
der
date
of
Febr
uary
1, 2
002,
pur
suan
t to
Res
olut
ion
No.
200
2-01
(th
e
“200
2 B
ond
Res
olut
ion”
), m
atur
ing
in p
rinci
pal a
mou
nts a
nd b
earin
g in
tere
st a
s fol
low
s:
Mat
urity
Yea
rs
(May
1)
Prin
cipa
l A
mou
nts
Inte
rest
R
ates
2012
$
640
,000
4.
30%
20
13
670,
000
4.40
20
14
700,
000
4.50
20
15
725,
000
5.00
20
16
765,
000
5.00
20
17
805,
000
5.00
20
18
845,
000
5.00
20
19
885,
000
5.00
20
20
930,
000
5.00
20
21
975,
000
5.00
20
22
1,02
0,00
0 5.
00
2023
1,
075,
000
5.00
20
27
4,87
0,00
0 5.
00
2033
9,
330,
000
5.00
(the
“200
2 B
onds
”); a
nd
W
HER
EAS,
the
200
2 B
onds
mat
urin
g on
and
afte
r M
ay 1
, 20
13 (
the
“Ref
unde
d
Bon
ds”)
, are
sub
ject
to o
ptio
nal r
edem
ptio
n at
the
optio
n of
the
Uni
vers
ity in
who
le o
r in
part
on
any
date
on
or a
fter M
ay 1
, 201
2 at
par
; and
WH
EREA
S, th
e U
nive
rsity
has
bee
n ad
vise
d th
at s
ubst
antia
l deb
t ser
vice
savi
ngs m
ay b
e
obta
ined
by
refu
ndin
g th
e R
efun
ded
Bon
ds th
roug
h th
e is
suan
ce o
f bon
ds h
erei
n au
thor
ized
to b
e
issu
ed (t
he “
Ref
undi
ng B
onds
”); a
nd
WH
EREA
S, i
t ap
pear
s to
the
Boa
rd o
f Tr
uste
es t
hat
it is
in
the
best
int
eres
t of
the
Uni
vers
ity t
hat
the
Impr
ovem
ent
Bon
ds a
nd t
he R
efun
ding
Bon
ds b
e co
mbi
ned
into
a s
ingl
e
B-2
-3
-
issu
e of
Rev
enue
and
Ref
undi
ng B
onds
in
the
aggr
egat
e pr
inci
pal
amou
nt o
f no
t to
exc
eed
$27,
000,
000
(the
“Bon
ds”)
; and
WH
EREA
S, u
nder
the
term
s of t
he 2
002
Bon
d R
esol
utio
n, th
e U
nive
rsity
is a
utho
rized
to
issu
e ad
ditio
nal
bond
s ha
ving
a p
arity
of
lien
on R
ecre
atio
n C
ente
r R
even
ues
(as
here
inaf
ter
defin
ed) w
ith th
e 20
02 B
onds
; and
W
HER
EAS,
the
Boa
rd h
as d
eter
min
ed to
del
egat
e to
the
Pres
iden
t and
Tre
asur
er c
erta
in
mat
ters
rela
ting
to th
e m
anne
r and
tim
ing
of sa
le o
f the
Bon
ds;
N
OW
, TH
EREF
OR
E, B
E IT
RES
OLV
ED B
Y T
HE
BO
AR
D O
F TR
UST
EES
OF
WES
TER
N W
ASH
ING
TON
UN
IVER
SITY
, as f
ollo
ws:
Se
ctio
n 1 .
D
efin
ition
s. T
he te
rms
defin
ed in
this
Sec
tion
1 sh
all,
for a
ll pu
rpos
es o
f
this
Res
olut
ion
(incl
udin
g th
e re
cita
ls)
and
of a
ny R
esol
utio
n su
pple
men
tal
here
to,
have
the
follo
win
g m
eani
ngs:
Acq
uire
d O
blig
atio
ns m
eans
the
Gov
ernm
ent
Obl
igat
ions
acq
uire
d by
the
Uni
vers
ity
unde
r th
e te
rms
of t
his
Res
olut
ion
and
the
Escr
ow A
gree
men
t to
eff
ect
the
defe
asan
ce a
nd
refu
ndin
g of
the
Ref
unde
d B
onds
.
Add
ition
al B
onds
mea
ns o
ne o
r m
ore
serie
s of
add
ition
al o
blig
atio
ns o
f th
e U
nive
rsity
issu
ed o
n a
parit
y of
lien
with
the
Bon
ds in
acc
orda
nce
with
Sec
tion
11 o
f thi
s Res
olut
ion.
Agg
rega
te A
nnua
l Deb
t Ser
vice
mea
ns A
nnua
l Deb
t Ser
vice
for
all
Out
stan
ding
Par
ity
Bon
ds a
nd a
ll Pa
rity
Bon
ds a
utho
rized
but
uni
ssue
d un
less
suc
h Pa
rity
Bon
ds a
re a
utho
rized
to
prov
ide
perm
anen
t fin
anci
ng in
con
nect
ion
with
the
issu
ance
of s
hort
term
obl
igat
ions
.
A
nnua
l D
ebt
Serv
ice
mea
ns,
for
any
spec
ified
Fis
cal
Yea
r, th
e su
m o
f th
e am
ount
s
requ
ired
to b
e pa
id in
to th
e B
ond
Fund
, in
such
Fis
cal Y
ear,
to p
ay (a
) th
e in
tere
st d
ue in
suc
h
Fisc
al Y
ear
on a
ll ou
tsta
ndin
g Pa
rity
Bon
ds, e
xclu
ding
inte
rest
to b
e pa
id f
rom
the
proc
eeds
of
-4
-
the
sale
of
Parit
y B
onds
, (b)
the
prin
cipa
l of
all
outs
tand
ing
Seria
l B
onds
due
in
such
Fis
cal
Yea
r, an
d (c
) th
e si
nkin
g fu
nd r
equi
rem
ent,
if an
y, f
or s
uch
Fisc
al Y
ear.
For
pur
pose
s of
the
Add
ition
al B
onds
tes
t in
Sec
tion
11,
with
res
pect
to
Parit
y B
onds
bea
ring
varia
ble
rate
s of
inte
rest
, Deb
t Ser
vice
sha
ll in
clud
e an
am
ount
for a
ny p
erio
d eq
ual t
o th
e am
ount
whi
ch w
ould
have
bee
n pa
yabl
e fo
r prin
cipa
l and
inte
rest
on
such
Par
ity B
onds
dur
ing
such
per
iod
com
pute
d
on th
e as
sum
ptio
n th
at th
e am
ount
of
varia
ble
rate
Par
ity B
onds
Out
stan
ding
as
of th
e da
te o
f
such
com
puta
tion
wou
ld b
e am
ortiz
ed (
i) in
acc
orda
nce
with
the
man
dato
ry r
edem
ptio
n
prov
isio
ns, i
f any
, set
forth
in th
e R
esol
utio
n au
thor
izin
g th
e is
suan
ce o
f suc
h Pa
rity
Bon
ds, o
r if
man
dato
ry r
edem
ptio
n pr
ovis
ions
are
not
pro
vide
d, d
urin
g a
perio
d co
mm
enci
ng o
n th
e da
te o
f
com
puta
tion
and
endi
ng o
n th
e da
te th
irty
(30)
yea
rs a
fter t
he d
ate
of is
suan
ce; (
ii) a
t an
inte
rest
rate
equ
al to
the
rate
pub
lishe
d as
the
Bon
d B
uyer
Rev
enue
Bon
d In
dex
for
mun
icip
al r
even
ue
bond
s w
ithin
the
thirt
y (3
0) d
ay p
erio
d pr
ior t
o th
e da
te o
f cal
cula
tion
(if s
uch
inde
x is
no
long
er
publ
ishe
d, a
noth
er n
atio
nally
reco
gniz
ed in
dex
for m
unic
ipal
reve
nue
bond
s m
atur
ing
in tw
enty
(20)
to th
irty
(30)
yea
rs);
(iii)
to p
rovi
de fo
r ess
entia
lly le
vel a
nnua
l deb
t ser
vice
of p
rinci
pal a
nd
inte
rest
ove
r suc
h pe
riod.
A
ppro
ved
Bid
mea
ns th
e w
inni
ng b
id s
ubm
itted
for a
ser
ies
of th
e B
onds
if s
uch
serie
s is
sold
by
Com
petit
ive
Sale
.
A
utho
rize
d R
epre
sent
ativ
e of
the
Uni
vers
ity m
eans
the
Pres
iden
t of t
he U
nive
rsity
.
A
vaila
ble
Fun
ds m
eans
mon
ey re
ceiv
ed fr
om c
olle
ctio
n of
the
SRC
Fee
, plu
s R
ecre
atio
n
Cen
ter R
even
ue.
A
vera
ge A
nnua
l D
ebt
Serv
ice
mea
ns,
for
each
ser
ies
of P
arity
Bon
ds,
the
aggr
egat
e
Ann
ual D
ebt S
ervi
ce in
all
year
s bet
wee
n th
e da
te o
f cal
cula
tion
and
the
final
sche
dule
d m
atur
ity
ther
eof,
divi
ded
by th
e nu
mbe
r of y
ears
bet
wee
n su
ch d
ates
.
B-3
-5
-
B
enef
icia
l O
wne
r m
eans
the
per
son
nam
ed o
n th
e B
ond
Reg
iste
r as
hav
ing
the
right
,
with
out a
phy
sica
l cer
tific
ate
evid
enci
ng s
uch
right
, to
trans
fer,
to h
ypot
heca
te a
nd to
rece
ive
the
paym
ent o
f the
prin
cipa
l of a
nd th
e in
tere
st o
n ea
ch B
ond,
whe
n du
e.
B
oard
mea
ns t
he B
oard
of
Trus
tees
of
the
Uni
vers
ity,
whi
ch e
xist
s an
d fu
nctio
ns
purs
uant
to c
hapt
er 2
8B.3
5 R
CW
, as h
eret
ofor
e an
d he
reaf
ter a
men
ded.
B
ond
Act
mea
ns R
CW
28B
.10.
300
thro
ugh
RC
W 2
8B.1
0.33
0, in
clus
ive,
as
here
tofo
re o
r
here
afte
r am
ende
d.
B
ond
Cou
nsel
mea
ns a
n at
torn
ey o
r fir
m o
f at
torn
eys
who
se o
pini
on is
acc
epte
d in
the
natio
nal t
ax-e
xem
pt c
apita
l mar
kets
as
to th
e is
suan
ce a
nd v
alid
ity o
f mun
icip
al se
curit
ies
and
as
to th
e in
tere
st p
aid
ther
eon
bein
g ex
empt
fro
m f
eder
al in
com
e ta
xatio
n, w
hich
atto
rney
or
firm
has b
een
appr
oved
by,
sele
cted
by
or re
tain
ed b
y th
e U
nive
rsity
from
tim
e to
tim
e.
B
ond
Fun
d m
eans
the
Rec
reat
ion
Cen
ter
Bon
d Fu
nd m
aint
aine
d pu
rsua
nt to
Sec
tion
8
here
of.
B
ond
Insu
ranc
e Po
licy
mea
ns t
he i
nsur
ance
pol
icy,
if
any,
iss
ued
by t
he I
nsur
er
guar
ante
eing
the
sch
edul
ed p
aym
ent
of p
rinci
pal
of a
nd i
nter
est
on t
he B
onds
whe
n du
e as
prov
ided
ther
ein.
B
ond
Purc
hase
Con
trac
t m
eans
, if
the
Bon
ds s
hall
be s
old
by N
egot
iate
d Sa
le,
the
purc
hase
con
tract
rela
ting
to th
e B
onds
bet
wee
n th
e U
nive
rsity
and
the
Und
erw
riter
.
B
ond
Reg
iste
r mea
ns th
e re
gist
ratio
n re
cord
s for
the
Bon
ds m
aint
aine
d by
the
Reg
istra
r.
B
onds
mea
ns th
e W
este
rn W
ashi
ngto
n U
nive
rsity
Stu
dent
Rec
reat
ion
Fee
Rev
enue
and
Ref
undi
ng B
onds
, 201
2, a
utho
rized
to b
e is
sued
by
this
Res
olut
ion.
B
ond
Year
mea
ns e
ach
one-
year
per
iod
that
end
s on
the
date
sel
ecte
d by
the
Uni
vers
ity.
The
first
and
las
t B
ond
Yea
rs m
ay b
e sh
ort
perio
ds.
If n
o da
y is
sel
ecte
d by
the
Uni
vers
ity
-6
-
befo
re th
e ea
rlier
of
the
final
mat
urity
dat
e of
the
Bon
ds o
r th
e da
te th
at is
fiv
e ye
ars
afte
r th
e
date
of
issu
ance
of
the
Bon
ds, B
ond
Yea
rs e
nd o
n ea
ch a
nniv
ersa
ry o
f the
dat
e of
issu
e an
d on
the
final
mat
urity
dat
e of
the
Bon
ds.
B
usin
ess
Day
mea
ns a
day
whi
ch i
s no
t a
Satu
rday
, Su
nday
or
othe
r da
y on
whi
ch
com
mer
cial
ban
ks in
the
citie
s of
Sea
ttle,
Was
hing
ton
and
New
Yor
k, N
ew Y
ork,
are
aut
horiz
ed
or re
quire
d by
law
to c
lose
.
Cal
l Dat
e m
eans
the
date
on
whi
ch b
onds
will
be
prep
aid,
as
sele
cted
by
the
Uni
vers
ity,
whi
ch d
ate
will
be
no e
arlie
r tha
n M
ay 1
, 201
2.
C
losi
ng D
ate
mea
ns t
he d
ate
and
time
whe
n th
e B
onds
are
del
iver
ed to
the
suc
cess
ful
bidd
er fo
r the
Bon
ds in
exc
hang
e fo
r pay
men
t in
full
ther
efor
.
C
ode
mea
ns t
he I
nter
nal
Rev
enue
Cod
e of
198
6, a
s he
reto
fore
or
here
afte
r am
ende
d,
toge
ther
with
all
corre
spon
ding
and
app
licab
le f
inal
, te
mpo
rary
or
prop
osed
reg
ulat
ions
and
reve
nue
rulin
gs a
s is
sued
or
amen
ded
with
res
pect
the
reto
by
the
Uni
ted
Stat
es T
reas
ury
Dep
artm
ent o
r the
Inte
rnal
Rev
enue
Ser
vice
to th
e ex
tent
app
licab
le to
the
Bon
ds.
Com
mon
Res
erve
Fun
d m
eans
the
“C
omm
on R
eser
ve F
und”
est
ablis
hed
purs
uant
to
Sect
ion
8 of
this
Res
olut
ion.
Com
mon
Res
erve
Req
uire
men
t m
eans
the
low
est
of (
i) m
axim
um A
ggre
gate
Ann
ual
Deb
t Se
rvic
e w
ith r
espe
ct t
o O
utst
andi
ng C
over
ed B
onds
; (ii
) 12
5 pe
rcen
t of
ave
rage
Ann
ual
Deb
t Se
rvic
e w
ith r
espe
ct t
o O
utst
andi
ng C
over
ed B
onds
; an
d (ii
i) 10
per
cent
of
the
initi
al
prin
cipa
l am
ount
of
each
ser
ies
then
Out
stan
ding
of
Cov
ered
Bon
ds.
The
Com
mon
Res
erve
Req
uire
men
t sh
all
be d
eter
min
ed a
nd c
alcu
late
d as
of
the
date
of
issu
ance
of
each
ser
ies
of
Cov
ered
Bon
ds (a
nd re
calc
ulat
ed u
pon
the
issu
ance
of a
subs
eque
nt se
ries o
f Cov
ered
Bon
ds a
nd
also
, at t
he U
nive
rsity
’s o
ptio
n, u
pon
the
paym
ent o
f prin
cipa
l of C
over
ed B
onds
) and
pro
vide
d
B-4
-7
-
that
if,
as a
res
ult
of t
he i
ssua
nce
of A
dditi
onal
Bon
ds, t
he i
ncre
ase
in t
he C
omm
on R
eser
ve
Req
uire
men
t of A
dditi
onal
Bon
ds w
ould
requ
ire th
at a
n am
ount
be
cont
ribut
ed to
the
Com
mon
Res
erve
Fun
d th
at is
mor
e th
an th
e Ta
x M
axim
um, t
he C
omm
on R
eser
ve R
equi
rem
ent s
hall
be
adju
sted
to re
quire
a c
ontri
butio
n eq
ual t
o th
e Ta
x M
axim
um.
C
ompe
titiv
e Sa
le m
eans
the
proc
ess
by w
hich
the
Bon
ds (o
r a
porti
on o
f the
m) a
re s
old
thro
ugh
the
publ
ic so
licita
tion
of b
ids f
rom
und
erw
ritin
g fir
ms.
C
over
ed B
onds
mea
ns a
ny P
arity
Bon
ds, d
esig
nate
d as
Cov
ered
Bon
ds s
ecur
ed b
y th
e
Com
mon
Res
erve
Fun
d.
A C
redi
t Eve
nt o
ccur
s w
hen
(a) a
Qua
lifie
d Le
tter o
f Cre
dit t
erm
inat
es, (
b) th
e is
suer
of
Qua
lifie
d In
sura
nce
or a
Qua
lifie
d Le
tter
of C
redi
t sh
all
beco
me
inso
lven
t or
no
long
er b
e in
exis
tenc
e, o
r (c
) a
Qua
lifie
d Le
tter
of C
redi
t or
Qua
lifie
d In
sura
nce
no l
onge
r m
eets
the
requ
irem
ents
est
ablis
hed
ther
efor
in th
e de
finiti
on th
ereo
f.
Cre
dit
Fac
ility
mea
ns a
pol
icy
of m
unic
ipal
bon
d in
sura
nce,
a l
ette
r of
cre
dit,
sure
ty
bond
, lin
e of
cre
dit,
guar
ante
e, s
tand
by p
urch
ase
agre
emen
t or o
ther
fina
ncia
l ins
trum
ent i
ssue
d
by a
third
par
ty w
hose
deb
t obl
igat
ions
are
rate
d at
the
time
of is
suan
ce o
f suc
h C
redi
t Fac
ility
by
at le
ast t
wo
Rat
ing
Age
ncie
s at
ratin
g(s)
not
low
er th
an th
e th
en c
urre
nt lo
ng te
rm ra
ting
on th
e
Parit
y B
onds
whi
ch C
redi
t Fac
ility
obl
igat
es a
third
par
ty to
mak
e pa
ymen
t or p
rovi
de fu
nds
for
the
paym
ent o
f fin
anci
al o
blig
atio
ns o
f th
e U
nive
rsity
, inc
ludi
ng b
ut n
ot li
mite
d to
pay
men
t of
the
prin
cipa
l of,
inte
rest
on
or p
urch
ase
pric
e of
Par
ity B
onds
or
mee
ting
rese
rve
requ
irem
ents
ther
efor
. F
or p
urpo
ses
of t
his
Res
olut
ion,
a C
redi
t Fa
cilit
y in
clud
es a
ny Q
ualif
ied
Insu
ranc
e
and/
or Q
ualif
ied
Lette
r of C
redi
t.
Cre
dit F
acili
ty Is
suer
mea
ns th
e is
suer
of a
ny C
redi
t Fac
ility
.
-8
-
D
TC m
eans
The
Dep
osito
ry T
rust
Com
pany
of N
ew Y
ork,
as
depo
sito
ry fo
r the
Bon
ds,
or a
ny su
cces
sor o
r sub
stitu
te d
epos
itory
for t
he B
onds
.
Esc
row
Age
nt m
eans
the
escr
ow a
gent
, if a
ny, s
elec
ted
by th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
in a
ccor
danc
e w
ith S
ectio
n 9
of th
is R
esol
utio
n.
Esc
row
Agr
eem
ent m
eans
the
Escr
ow D
epos
it A
gree
men
t, if
any,
to b
e da
ted
as o
f th
e
date
of t
he C
losi
ng D
ate
of th
e B
onds
subs
tant
ially
in th
e fo
rm a
ttach
ed h
eret
o as
Exh
ibit
A.
F
isca
l Yea
r mea
ns th
e U
nive
rsity
’s d
uly
adop
ted
fisca
l yea
r.
F
und
mea
ns a
ny s
peci
al fu
nd c
reat
ed b
y th
is R
esol
utio
n an
d pl
edge
d as
sec
urity
for
the
Parit
y B
onds
pur
suan
t to
this
Res
olut
ion.
G
over
nmen
t Obl
igat
ions
has
the
mea
ning
giv
en to
suc
h te
rm in
RC
W C
hapt
er 3
9.53
, as
the
sam
e m
ay b
e am
ende
d fr
om ti
me
to ti
me,
pro
vide
d th
at s
uch
oblig
atio
ns a
re n
onca
llabl
e an
d
are
oblig
atio
ns is
sued
or u
ncon
ditio
nally
gua
rant
eed
by th
e U
nite
d St
ates
of A
mer
ica.
Impr
ovem
ent B
onds
mea
ns th
at p
ortio
n of
the
Bon
ds a
utho
rized
to b
e is
sued
her
ein,
in a
prin
cipa
l am
ount
to
prov
ide
not
mor
e th
an $
2,50
0,00
0 of
net
Bon
d pr
ocee
ds (
net
of c
osts
of
issu
ance
), fo
r th
e pu
rpos
e of
fin
anci
ng t
he c
ost
of t
he i
mpr
ovem
ents
to
recr
eatio
nal
faci
litie
s
appr
oved
by
the
Boa
rd.
In
sure
r m
eans
suc
h bo
nd i
nsur
ance
com
pany
, if
any,
fro
m w
hich
a B
ond
Insu
ranc
e
Polic
y, if
any
, may
be
acqu
ired
for t
he B
onds
, in
acco
rdan
ce w
ith th
is R
esol
utio
n.
Le
gisl
atur
e m
eans
the
Legi
slat
ure
of th
e St
ate.
Le
tter
of R
epre
sent
atio
ns m
eans
the
Bla
nket
Iss
uer
Lette
r of
Rep
rese
ntat
ions
fro
m th
e
Uni
vers
ity to
DTC
.
B-5
-9
-
Liqu
idity
Fac
ility
mea
ns a
line
of
cred
it, s
tand
by p
urch
ase
agre
emen
t or
othe
r fin
anci
al
inst
rum
ent o
r any
com
bina
tion
of th
e fo
rego
ing,
whi
ch o
blig
ates
a th
ird p
arty
to m
ake
paym
ent
or to
pro
vide
fund
s for
the
paym
ent o
f the
pur
chas
e pr
ice
of P
arity
Bon
ds.
Liqu
idity
Fac
ility
Issu
er m
eans
the
issu
er o
f any
Liq
uidi
ty F
acili
ty.
M
oody
’s m
eans
Moo
dy’s
Inv
esto
rs S
ervi
ce,
Inc.
, a
corp
orat
ion
duly
org
aniz
ed a
nd
exis
ting
unde
r and
by
virtu
e of
the
law
s of
the
Stat
e of
Del
awar
e, a
nd it
s su
cces
sors
and
ass
igns
,
exce
pt th
at if
suc
h co
rpor
atio
n sh
all b
e di
ssol
ved
or l
iqui
date
d or
sha
ll no
lon
ger
perfo
rm th
e
func
tions
of
a se
curit
ies
ratin
g ag
ency
, the
n th
e te
rm M
oody
’s s
hall
be d
eem
ed to
ref
er to
any
othe
r nat
iona
lly re
cogn
ized
sec
uriti
es ra
ting
agen
cy (o
ther
than
S&
P) s
elec
ted
by th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
.
MSR
B m
eans
the
Mun
icip
al S
ecur
ities
Rul
emak
ing
Boa
rd o
r an
y su
cces
sor
to i
ts
func
tions
.
Unt
il ot
herw
ise
desi
gnat
ed
by
the
MSR
B
or
the
Secu
ritie
s an
d Ex
chan
ge
Com
mis
sion
, any
info
rmat
ion,
repo
rts o
r not
ices
sub
mitt
ed to
the
MSR
B in
com
plia
nce
with
the
Rul
e ar
e to
be
subm
itted
thr
ough
the
MSR
B’s
Ele
ctro
nic
Mun
icip
al M
arke
t A
cces
s sy
stem
(“EM
MA
”), c
urre
ntly
loca
ted
at w
ww
.em
ma.
msr
b.or
g.
N
egot
iate
d Sa
le m
eans
the
proc
ess b
y w
hich
the
Bon
ds (o
r a p
ortio
n of
them
) are
sold
by
nego
tiatio
n to
one
or m
ore
unde
rwrit
ing
firm
s se
lect
ed b
y th
e A
utho
rized
Rep
rese
ntat
ive
of th
e
Uni
vers
ity.
N
et P
roce
eds,
whe
n us
ed w
ith r
efer
ence
to B
onds
, mea
ns th
e pr
inci
pal a
mou
nt o
f su
ch
Bon
ds, p
lus
accr
ued
inte
rest
and
orig
inal
issu
e pr
emiu
m, i
f any
, and
less
orig
inal
issu
e di
scou
nt,
if an
y, a
nd p
roce
eds,
if an
y, d
epos
ited
in th
e C
omm
on R
eser
ve F
und.
O
ffic
ial N
otic
e of
Sal
e m
eans
, if t
he B
onds
sha
ll be
sol
d by
Com
petit
ive
Sale
, the
not
ice
of B
ond
sale
aut
horiz
ed to
be
give
n in
Sec
tion
16 o
f thi
s Res
olut
ion.
-1
0-
O
ffic
ial S
tate
men
t mea
ns th
e O
ffic
ial S
tate
men
t of
the
Uni
vers
ity p
erta
inin
g to
the
sale
of th
e B
onds
, in
eith
er p
relim
inar
y or
fina
l for
m.
O
pini
on o
f Bon
d C
ouns
el m
eans
an
opin
ion
in w
ritin
g of
Bon
d C
ouns
el.
O
pini
on o
f Cou
nsel
mea
ns a
n op
inio
n in
writ
ing
of a
law
yer a
dmitt
ed to
pra
ctic
e in
the
Stat
e.
O
utst
andi
ng, w
hen
used
as
of a
par
ticul
ar ti
me
with
refe
renc
e to
Par
ity B
onds
, mea
ns a
ll
Parit
y B
onds
del
iver
ed h
ereu
nder
exc
ept:
(a
) Pa
rity
Bon
ds c
ance
led
by t
he R
egis
trar
or s
urre
nder
ed t
o th
e R
egis
trar
for
canc
ella
tion;
(b
) Pa
rity
Bon
ds p
aid
or d
eem
ed t
o ha
ve b
een
paid
with
in t
he m
eani
ng o
f th
is
reso
lutio
n; a
nd
(c
) Pa
rity
Bon
ds in
lieu
of o
r in
subs
titut
ion
for w
hich
repl
acem
ent P
arity
Bon
ds sh
all
have
bee
n ex
ecut
ed b
y th
e U
nive
rsity
and
del
iver
ed b
y th
e R
egis
trar h
ereu
nder
.
Pa
rity
Bon
ds m
eans
the
Bon
ds a
nd a
ny A
dditi
onal
Bon
ds.
Pe
rson
mea
ns a
ny n
atur
al p
erso
n, f
irm, j
oint
ven
ture
, ass
ocia
tion,
par
tner
ship
, bus
ines
s
trust
, cor
pora
tion,
pub
lic b
ody,
age
ncy
or p
oliti
cal s
ubdi
visi
on th
ereo
f or a
ny o
ther
sim
ilar e
ntity
.
Pr
ivat
e Pe
rson
mea
ns a
ny n
atur
al p
erso
n en
gage
d in
a t
rade
or
busi
ness
or
any
trust
,
esta
te, p
artn
ersh
ip, a
ssoc
iatio
n, c
ompa
ny o
r cor
pora
tion.
Pr
ivat
e Pe
rson
Use
mea
ns th
e us
e of
pro
perty
in a
trad
e or
bus
ines
s by
a P
rivat
e Pe
rson
if su
ch u
se i
s ot
her
than
as
a m
embe
r of
the
gen
eral
pub
lic.
Priv
ate
Pers
on U
se i
nclu
des
owne
rshi
p of
the
prop
erty
by
the
Priv
ate
Pers
on a
s wel
l as o
ther
arr
ange
men
ts th
at tr
ansf
er to
the
Priv
ate
Pers
on t
he a
ctua
l or
ben
efic
ial
use
of t
he p
rope
rty (
such
as
a le
ase,
man
agem
ent
or
ince
ntiv
e pa
ymen
t con
tract
or
othe
r sp
ecia
l arr
ange
men
t) in
suc
h a
man
ner a
s to
set
the
Priv
ate
B-6
-1
1-
Pers
on a
part
from
the
gene
ral p
ublic
. U
se o
f pro
perty
as a
mem
ber o
f the
gen
eral
pub
lic in
clud
es
atte
ndan
ce b
y th
e Pr
ivat
e Pe
rson
at
mun
icip
al m
eetin
gs o
r bu
sine
ss r
enta
l of
pro
perty
to
the
Priv
ate
Pers
on o
n a
day-
to-d
ay b
asis
if th
e re
ntal
pai
d by
suc
h Pr
ivat
e Pe
rson
is th
e sa
me
as th
e
rent
al p
aid
by a
ny P
rivat
e Pe
rson
who
des
ires
to re
nt th
e pr
oper
ty.
Use
of p
rope
rty b
y no
npro
fit
com
mun
ity g
roup
s or
com
mun
ity re
crea
tiona
l gro
ups
is n
ot tr
eate
d as
Priv
ate
Pers
on U
se if
suc
h
use
is in
cide
ntal
to th
e go
vern
men
tal u
ses
of p
rope
rty, t
he p
rope
rty is
mad
e av
aila
ble
for
such
use
by a
ll su
ch c
omm
unity
gro
ups
on a
n eq
ual b
asis
, and
suc
h co
mm
unity
gro
ups
are
char
ged
only
a d
e m
inim
is fe
e to
cov
er c
usto
dial
or s
ecur
ity e
xpen
ses.
Proj
ect m
eans
impr
ovem
ents
to th
e re
crea
tiona
l fac
ilitie
s of
the
Uni
vers
ity a
s ap
prov
ed
by th
e B
oard
.
Proj
ect F
und
mea
ns th
e fu
nd d
esig
nate
d as
the
“Rec
reat
ion
Cen
ter
Con
stru
ctio
n Fu
nd”
mai
ntai
ned
purs
uant
to S
ectio
n 9
of th
is R
esol
utio
n.
Qua
lifie
d In
sura
nce
mea
ns a
ny n
on-c
ance
labl
e m
unic
ipal
bon
d in
sura
nce
polic
y or
Sure
ty B
ond
issu
ed b
y an
y in
sura
nce
com
pany
lice
nsed
to c
ondu
ct a
n in
sura
nce
busi
ness
in a
ny
stat
e of
the
Uni
ted
Stat
es (
or b
y a
serv
ice
corp
orat
ion
actin
g on
beh
alf
of o
ne o
r m
ore
such
insu
ranc
e co
mpa
nies
) (i)
whi
ch i
nsur
ance
com
pany
or
com
pani
es a
re r
ated
, at
the
tim
e of
issu
ance
of
the
polic
y or
Sur
ety
Bon
d, a
s th
e ca
se m
ay b
e, i
n on
e of
the
tw
o hi
ghes
t R
atin
g
Cat
egor
ies
by o
ne o
r mor
e of
the
Rat
ing
Age
ncie
s fo
r uns
ecur
ed d
ebt o
r ins
uran
ce u
nder
writ
ing
or c
laim
s pa
ying
abi
lity
or (i
i) if
as a
resu
lt of
the
issu
ance
of i
ts p
olic
ies,
the
oblig
atio
ns in
sure
d
ther
eby
to b
e ra
ted
in o
ne o
f th
e tw
o hi
ghes
t Rat
ing
Cat
egor
ies
at th
e tim
e of
issu
ance
of
the
polic
y or
sure
ty b
ond
by o
ne o
r mor
e of
the
Rat
ing
Age
ncie
s.
Qua
lifie
d Le
tter
of C
redi
t m
eans
any
irr
evoc
able
let
ter
of c
redi
t is
sued
by
a fin
anci
al
inst
itutio
n, w
hich
inst
itutio
n m
aint
ains
an
offic
e, a
genc
y or
bra
nch
in th
e U
nite
d St
ates
and
is
-1
2-
rate
d, a
t the
tim
e of
issu
ance
of
the
lette
r of
cre
dit,
in o
ne o
f th
e tw
o hi
ghes
t lon
g te
rm R
atin
g
Cat
egor
ies b
y on
e or
mor
e of
the
Rat
ing
Age
ncie
s.
R
atin
g A
genc
y m
eans
Moo
dy’s
or S
&P.
Rat
ing
Cat
egor
y m
eans
the
gene
ric ra
ting
cate
gorie
s of
a R
atin
g A
genc
y, w
ithou
t reg
ard
to a
ny re
finem
ent o
r gra
datio
n of
such
ratin
g ca
tego
ry b
y a
num
eric
al m
odifi
er o
r oth
erw
ise.
R
CW
mea
ns th
e R
evis
ed C
ode
of W
ashi
ngto
n, a
s now
in e
xist
ence
or h
erea
fter a
men
ded,
or a
ny su
cces
sor c
odifi
catio
n of
the
law
s of t
he S
tate
of W
ashi
ngto
n.
R
ecor
d D
ate
mea
ns t
he 1
5th d
ay o
f th
e ca
lend
ar m
onth
im
med
iate
ly p
rece
ding
eac
h
inte
rest
pay
men
t dat
e or
, as
to a
ny d
ate
upon
whi
ch d
efau
lted
inte
rest
on
the
Bon
ds is
to b
e pa
id,
the
date
est
ablis
hed
by th
e R
egis
trar a
s th
e sp
ecia
l rec
ord
date
for t
he p
aym
ent o
f suc
h de
faul
ted
inte
rest
.
R
ecre
atio
n C
ente
r m
eans
the
com
preh
ensi
ve r
ecre
atio
nal f
acili
ties
and
amen
ities
vot
ed
by re
fere
ndum
of t
he st
uden
ts o
f the
Uni
vers
ity o
n Fe
brua
ry 2
3 an
d 24
, 200
0.
R
ecre
atio
n C
ente
r R
even
ues
mea
ns th
e gr
oss
reve
nues
rece
ived
from
the
owne
rshi
p an
d
oper
atio
n of
the
Rec
reat
ion
Cen
ter.
Oth
er S
ervi
ce a
nd A
ctiv
ity F
ees,
spor
t cl
ub d
ues,
and
inte
rmur
al te
am fe
es a
re n
ot a
par
t of t
he R
ecre
atio
n C
ente
r Rev
enue
s.
R
edem
ptio
n D
ate
mea
ns th
e da
te u
pon
whi
ch a
ny B
onds
are
to b
e re
deem
ed, d
eter
min
ed
as p
rovi
ded
in S
ectio
n 3
here
of.
Ref
unde
d B
onds
mea
ns th
e 20
02 B
onds
mat
urin
g on
and
afte
r May
1, 2
013.
Ref
undi
ng B
onds
mea
ns t
he n
et p
ortio
n of
the
Bon
ds i
ssue
d he
rein
, no
t to
exc
eed
$24,
500,
000,
to b
e us
ed fo
r the
pur
pose
of r
efun
ding
the
Ref
unde
d B
onds
.
R
egis
tere
d O
wne
r of a
ny B
ond
mea
ns th
e pe
rson
nam
ed a
s the
Reg
iste
red
Ow
ner o
f suc
h
Bon
d on
the
Bon
d R
egis
ter.
B-7
-1
3-
R
egis
trar
mea
ns t
he f
isca
l ag
ency
of
the
Stat
e of
Was
hing
ton,
who
se d
utie
s in
clud
e
regi
ster
ing
and
auth
entic
atin
g th
e B
onds
, mai
ntai
ning
the
Bon
d R
egis
ter,
trans
ferr
ing
owne
rshi
p
of th
e B
onds
, and
pay
ing
the
prin
cipa
l of a
nd in
tere
st o
n th
e B
onds
.
R
enew
al a
nd R
epla
cem
ent
Res
erve
Acc
ount
mea
ns t
he R
enew
al a
nd R
epla
cem
ent
Res
erve
Acc
ount
so
desi
gnat
ed a
nd e
stab
lishe
d by
Sec
tion
7 he
reof
and
mai
ntai
ned
purs
uant
to
Sect
ion
7 he
reof
.
R
enew
al a
nd R
epla
cem
ent R
eser
ve R
equi
rem
ent m
eans
$25
0,00
0; p
rovi
ded,
how
ever
,
that
the
Ren
ewal
and
Rep
lace
men
t R
eser
ve R
equi
rem
ent
shal
l be
sub
ject
to
adju
stm
ent
as
prov
ided
in S
ectio
n 7
of th
is R
esol
utio
n.
R
even
ue A
ccou
nt m
eans
the
Stud
ent R
ecre
atio
n R
even
ue A
ccou
nt e
stab
lishe
d pu
rsua
nt
to S
ectio
n 7(
a) h
ereo
f.
R
ule
mea
ns R
ule
15c2
-12(
b)(5
) ado
pted
by
the
SEC
und
er th
e Se
curit
ies
Exch
ange
Act
of 1
934,
as t
he sa
me
may
be
amen
ded
from
tim
e to
tim
e.
Savi
ngs
Targ
et m
eans
a n
et p
rese
nt v
alue
dol
lar
amou
nt a
t le
ast
equa
l to
fiv
e pe
rcen
t
(5.0
%) o
f the
prin
cipa
l am
ount
of t
he R
efun
ded
Bon
ds.
SE
C m
eans
the
Secu
ritie
s and
Exc
hang
e C
omm
issi
on.
S&
P m
eans
Sta
ndar
d &
Poo
r’s
Rat
ings
Ser
vice
s, a
Div
isio
n of
The
McG
raw
-Hill
Com
pani
es, I
nc.,
and
its s
ucce
ssor
s an
d as
sign
s, ex
cept
that
if s
uch
corp
orat
ion
or d
ivis
ion
shal
l
be d
isso
lved
or l
iqui
date
d or
sha
ll no
long
er p
erfo
rm th
e fu
nctio
ns o
f a s
ecur
ities
ratin
g ag
ency
,
then
the
term
S&
P sh
all b
e de
emed
to r
efer
to a
ny o
ther
nat
iona
lly re
cogn
ized
sec
uriti
es ra
ting
agen
cy (o
ther
than
Moo
dy’s
) sel
ecte
d by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity.
-1
4-
Se
rial
Bon
ds m
eans
the
porti
on o
f the
Bon
ds, i
f any
, des
igna
ted
as “
Seria
l Bon
ds”
in th
e
Bon
d Pu
rcha
se C
ontra
ct o
r A
ppro
ved
Bid
for
suc
h B
onds
and
any
Par
ity B
onds
her
eafte
r
prov
ided
for i
n th
e R
esol
utio
n au
thor
izin
g th
eir i
ssua
nce.
SRC
Fee
mea
ns th
e se
rvic
es a
nd a
ctiv
ities
fee
(in
itial
ly a
ppro
ved
by r
efer
endu
m o
f th
e
stud
ents
of t
he U
nive
rsity
on
Febr
uary
23
and
24, 2
000)
to p
ay c
osts
of c
onst
ruct
ing,
ope
ratin
g
and
mai
ntai
ning
the
Rec
reat
ion
Cen
ter.
The
SR
C F
ee w
as s
et in
itial
ly in
the
dolla
r am
ount
of
$80
per q
uarte
r for
eac
h st
uden
t enr
olle
d fo
r six
or m
ore
cred
its a
nd is
cur
rent
ly s
et in
the
dolla
r
amou
nt o
f $9
5 pe
r qu
arte
r. T
he S
RC
Fee
may
be
decr
ease
d fr
om t
he d
olla
r am
ount
ini
tially
appr
oved
as l
ong
as th
e co
vera
ge c
oven
ant i
n Se
ctio
n 12
is m
et.
St
ate
mea
ns th
e St
ate
of W
ashi
ngto
n.
Tax
Max
imum
mea
ns th
e m
axim
um d
olla
r am
ount
per
mitt
ed b
y th
e C
ode
to b
e al
loca
ted
to a
Bon
d re
serv
e ac
coun
t fro
m B
ond
proc
eeds
with
out r
equi
ring
a ba
lanc
e to
be
inve
sted
at a
rest
ricte
d yi
eld.
Te
rm B
onds
mea
ns th
e po
rtion
of t
he B
onds
, if a
ny, d
esig
nate
d as
“Te
rm B
onds
” in
the
Bon
d Pu
rcha
se C
ontra
ct o
r A
ppro
ved
Bid
for
suc
h B
onds
and
any
Par
ity B
onds
her
eafte
r
prov
ided
for i
n th
e R
esol
utio
n au
thor
izin
g th
eir i
ssua
nce.
Tr
easu
rer
mea
ns th
e V
ice
Pres
iden
t for
Bus
ines
s an
d Fi
nanc
ial A
ffai
rs o
f the
Uni
vers
ity
or a
ny s
ucce
ssor
to
the
func
tions
of
such
off
ice,
and
als
o sh
all
incl
ude
any
desi
gnee
of
the
Trea
sure
r for
the
perfo
rman
ce o
f spe
cific
func
tions
und
er th
is R
esol
utio
n.
20
02 B
ond
Res
olut
ion
mea
ns R
esol
utio
n N
o. 2
002-
01 a
dopt
ed o
n Fe
brua
ry 8
, 20
02
auth
oriz
ing
the
2002
Bon
ds.
B-8
-1
5-
20
02 B
onds
mea
ns t
he S
tude
nt R
ecre
atio
n Fe
e R
even
ue B
onds
, Se
ries
2002
of
the
Uni
vers
ity is
sued
pur
suan
t to
the
2002
Bon
d R
esol
utio
n, is
sued
und
er d
ate
of F
ebru
ary
1, 2
002,
and
pres
ently
out
stan
ding
in th
e ag
greg
ate
prin
cipa
l am
ount
of $
24,2
35,0
00.
U
ncov
ered
Bon
ds m
eans
Par
ity B
onds
that
will
not
be
secu
red
by th
e C
omm
on R
eser
ve
Fund
.
Und
erw
rite
r m
eans
, the
und
erw
riter
(s) o
f the
Bon
ds if
the
Bon
ds a
re s
old
by N
egot
iate
d
Sale
or t
he s
ucce
ssfu
l bid
der s
ubm
ittin
g th
e A
ppro
ved
Bid
if th
e B
onds
are
sol
d by
Com
petit
ive
Sale
.
U
nive
rsity
mea
ns W
este
rn W
ashi
ngto
n U
nive
rsity
, a h
ighe
r edu
catio
nal i
nstit
utio
n of
the
Stat
e of
Was
hing
ton,
the
mai
n ca
mpu
s of w
hich
is lo
cate
d at
Bel
lingh
am, W
ashi
ngto
n.
R
ules
of I
nter
pret
atio
n. I
n th
is R
esol
utio
n, u
nles
s the
con
text
oth
erw
ise
requ
ires:
(a
) Th
e te
rms
“her
eby,
” “h
ereo
f,” “
here
to,”
“he
rein
,” “
here
unde
r” a
nd a
ny s
imila
r
term
s, as
use
d in
this
Res
olut
ion,
ref
er to
this
Res
olut
ion
as a
who
le a
nd n
ot to
any
par
ticul
ar
artic
le, s
ectio
n, s
ubdi
visi
on o
r cl
ause
her
eof,
and
the
term
‘he
reaf
ter’
sha
ll m
ean
afte
r, an
d th
e
term
‘her
etof
ore’
shal
l mea
n be
fore
, the
dat
e of
this
Res
olut
ion;
(b
) W
ords
of
the
mas
culin
e ge
nder
sha
ll m
ean
and
incl
ude
corr
elat
ive
wor
ds o
f th
e
fem
inin
e an
d ne
uter
gen
ders
and
wor
ds im
porti
ng th
e si
ngul
ar n
umbe
r sh
all m
ean
and
incl
ude
the
plur
al n
umbe
r and
vic
e ve
rsa;
(c
) W
ords
impo
rting
per
sons
shal
l inc
lude
firm
s, as
soci
atio
ns, p
artn
ersh
ips (
incl
udin
g
limite
d pa
rtner
ship
s), t
rust
s, co
rpor
atio
ns a
nd o
ther
lega
l ent
ities
, inc
ludi
ng p
ublic
bod
ies,
as w
ell
as n
atur
al p
erso
ns;
(d
) A
ny h
eadi
ngs
prec
edin
g th
e te
xt o
f th
e se
vera
l ar
ticle
s an
d se
ctio
ns o
f th
is
Res
olut
ion,
and
any
tab
le o
f co
nten
ts o
r m
argi
nal
note
s ap
pend
ed t
o co
pies
her
eof,
shal
l be
-1
6-
sole
ly f
or c
onve
nien
ce o
f re
fere
nce
and
shal
l not
con
stitu
te a
par
t of
this
Res
olut
ion,
nor
sha
ll
they
aff
ect i
ts m
eani
ng, c
onst
ruct
ion
or e
ffec
t;
(e
) A
ll re
fere
nces
her
ein
to “
artic
les,”
“se
ctio
ns”
and
othe
r sub
divi
sion
s or c
laus
es a
re
to th
e co
rres
pond
ing
artic
les,
sect
ions
, sub
divi
sion
s or c
laus
es h
ereo
f; an
d
(f
) W
hene
ver a
ny c
onse
nt o
r dire
ctio
n is
requ
ired
to b
e gi
ven
by th
e U
nive
rsity
, suc
h
cons
ent o
r dire
ctio
n sh
all b
e de
emed
giv
en w
hen
give
n by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity o
r hi
s or
her
des
igne
e, r
espe
ctiv
ely,
and
all
refe
renc
es h
erei
n to
the
Aut
horiz
ed
Rep
rese
ntat
ive
of th
e U
nive
rsity
sha
ll be
dee
med
to in
clud
e re
fere
nces
to h
is o
r her
des
igne
e, a
s
the
case
may
be.
Sect
ion
2 .
Aut
horiz
atio
n an
d Pu
rpos
e of
Bon
ds; B
ond
Det
ails
.
(a)
Aut
hori
zati
on a
nd P
urpo
se o
f B
onds
. T
he B
oard
her
eby
auth
oriz
es th
e sa
le a
nd
issu
ance
of
Rev
enue
and
Ref
undi
ng B
onds
in th
e ag
greg
ate
prin
cipa
l am
ount
of
not t
o ex
ceed
$27,
000,
000
to m
ake
impr
ovem
ents
to re
crea
tiona
l fac
ilitie
s of t
he U
nive
rsity
as a
ppro
ved
by th
e
Boa
rd, r
efun
d th
e R
efun
ded
Bon
ds a
nd to
fina
nce
all o
r a p
art o
f the
cos
ts o
f iss
uanc
e.
(b)
Bon
d D
etai
ls.
The
Bon
ds s
hall
be is
sued
in o
ne o
r mor
e se
ries,
to b
e de
sign
ated
as “
Wes
tern
Was
hing
ton
Uni
vers
ity S
tude
nt R
ecre
atio
n Fe
e R
even
ue a
nd R
efun
ding
Bon
ds,
Serie
s 20
12”,
with
suc
h ad
ditio
nal d
esig
natio
ns a
s sh
all b
e de
emed
nec
essa
ry o
r app
ropr
iate
for
purp
oses
of i
dent
ifica
tion,
shal
l be
date
d as
of t
he d
ate
of in
itial
del
iver
y, sh
all b
e fu
lly re
gist
ered
as to
bot
h pr
inci
pal a
nd i
nter
est,
shal
l be
in th
e de
nom
inat
ion
of $
5,00
0 ea
ch, o
r an
y in
tegr
al
mul
tiple
the
reof
, pr
ovid
ed t
hat
no B
ond
shal
l re
pres
ent
mor
e th
an o
ne m
atur
ity,
shal
l be
num
bere
d se
para
tely
in s
uch
man
ner a
nd w
ith a
ny a
dditi
onal
des
igna
tion
as th
e R
egis
trar d
eem
s
nece
ssar
y fo
r pur
pose
s of i
dent
ifica
tion,
bea
r int
eres
t at t
he p
er a
nnum
rate
s, pa
yabl
e on
the
date
s
and
mat
urin
g in
prin
cipa
l am
ount
s se
t fo
rth i
n th
e A
ppro
ved
Bid
or
Bon
d Pu
rcha
se C
ontra
ct,
B-9
-1
7-
purs
uant
to S
ectio
n 16
. Th
e B
onds
sha
ll be
obl
igat
ions
onl
y of
the
Bon
d Fu
nd a
nd th
e C
omm
on
Res
erve
Fun
d if
the
Bon
ds a
re d
esig
nate
d as
Cov
ered
Bon
ds, a
nd sh
all b
e pa
yabl
e an
d se
cure
d as
prov
ided
her
ein.
The
Bon
ds a
re n
ot g
ener
al o
blig
atio
ns o
f the
Uni
vers
ity.
The
Bon
ds s
hall
not
cons
titut
e an
inde
bted
ness
of t
he U
nive
rsity
with
in th
e m
eani
ng o
f the
con
stitu
tiona
l pro
visi
ons
and
limita
tions
of t
he S
tate
of W
ashi
ngto
n.
Sect
ion
3 .
Rig
ht o
f Prio
r Red
empt
ion
and
Purc
hase
.
(a
) O
ptio
nal
Red
empt
ion.
The
Bon
ds s
hall
be s
ubje
ct to
opt
iona
l red
empt
ion
on th
e
date
s, at
the
pric
es a
nd u
nder
the
term
s se
t for
th in
the
Bon
d Pu
rcha
se C
ontra
ct o
r App
rove
d B
id
appr
oved
by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity p
ursu
ant t
o Se
ctio
n 16
.
(b
) M
anda
tory
Red
empt
ion.
The
Bon
ds s
hall
be s
ubje
ct to
man
dato
ry re
dem
ptio
n to
the
exte
nt, i
f any
, set
forth
in th
e B
ond
Purc
hase
Con
tract
or A
ppro
ved
Bid
and
as
appr
oved
by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity p
ursu
ant t
o Se
ctio
n 16
.
(c
) E
xtra
ordi
nary
Opt
iona
l R
edem
ptio
n.
The
Bon
ds a
re s
ubje
ct t
o ex
traor
dina
ry
optio
nal
rede
mpt
ion
prio
r to
mat
urity
by
the
Reg
istra
r, up
on t
he r
eque
st o
f th
e U
nive
rsity
, in
who
le o
r in
part
on a
ny d
ate
at a
rede
mpt
ion
pric
e eq
ual t
o 10
0 pe
rcen
t of t
he p
rinci
pal a
mou
nt
ther
eof,
plus
acc
rued
inte
rest
to th
e re
dem
ptio
n da
te, i
n an
agg
rega
te a
mou
nt n
ot to
exc
eed
any
avai
labl
e pr
ocee
ds o
f ca
sual
ty i
nsur
ance
whi
ch t
he U
nive
rsity
rec
eive
s as
a r
esul
t of
maj
or
dam
age
to o
r des
truct
ion
of a
ny p
ortio
n of
the
Rec
reat
ion
Cen
ter.
(d
) P
urch
ase
of B
onds
. Th
e B
onds
may
be
purc
hase
d at
any
tim
e, to
the
exte
nt th
at
such
Bon
ds a
re o
ffer
ed to
the
Uni
vers
ity a
t any
pric
e de
emed
rea
sona
ble
by th
e Tr
easu
rer
but
only
to
the
exte
nt o
f G
ross
Rev
enue
ava
ilabl
e af
ter
prov
idin
g fo
r th
e pa
ymen
ts r
equi
red
by
para
grap
hs (b
)(1)
thro
ugh
(6) o
f Sec
tion
7 of
this
Res
olut
ion.
-1
8-
(e
) E
ffec
t of
Opt
iona
l R
edem
ptio
n/P
urch
ase.
To
the
exte
nt th
at th
e U
nive
rsity
sha
ll
have
opt
iona
lly r
edee
med
or
purc
hase
d an
y Te
rm B
onds
sin
ce t
he l
ast
sche
dule
d m
anda
tory
rede
mpt
ion
of s
uch
Term
Bon
ds, t
he U
nive
rsity
may
red
uce
the
prin
cipa
l am
ount
of
the
Term
Bon
ds o
f the
sam
e m
atur
ity to
be
rede
emed
in li
ke a
ggre
gate
prin
cipa
l am
ount
. Su
ch re
duct
ion
may
be
appl
ied
in th
e ye
ar sp
ecifi
ed b
y th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
.
(f
) Se
lect
ion
of B
onds
for
Red
empt
ion.
As
long
as
the
Bon
ds a
re h
eld
in b
ook-
entry
only
form
, the
mat
uriti
es to
be
rede
emed
sha
ll be
sel
ecte
d by
the
Uni
vers
ity a
nd, w
ithin
a s
erie
s
and
mat
urity
, the
sel
ectio
n of
Bon
ds o
f suc
h se
ries
to b
e re
deem
ed s
hall
be m
ade
in a
ccor
danc
e
with
the
ope
ratio
nal
arra
ngem
ents
in
effe
ct a
t D
TC.
If
the
Bon
ds a
re n
o lo
nger
hel
d in
unce
rtific
ated
form
, the
sele
ctio
n of
such
Bon
ds to
be
rede
emed
shal
l be
mad
e as
pro
vide
d in
this
subs
ectio
n (f
). If
the
Uni
vers
ity re
deem
s at
any
one
tim
e fe
wer
than
all
of th
e B
onds
hav
ing
the
sam
e se
ries
and
mat
urity
dat
e, t
he p
artic
ular
Bon
ds o
r po
rtion
s of
Bon
ds o
f su
ch s
erie
s an
d
mat
urity
to
be r
edee
med
sha
ll be
sel
ecte
d by
lot
(or
in
such
oth
er m
anne
r de
term
ined
by
the
Reg
istra
r) in
incr
emen
ts o
f $5,
000.
In
the
case
of a
Bon
d of
a d
enom
inat
ion
grea
ter t
han
$5,0
00,
the
Uni
vers
ity a
nd R
egis
trar
shal
l tre
at e
ach
Bon
d as
rep
rese
ntin
g su
ch n
umbe
r of
sep
arat
e
Bon
ds e
ach
of th
e de
nom
inat
ion
of $
5,00
0 as
is o
btai
ned
by d
ivid
ing
the
actu
al p
rinci
pal a
mou
nt
of s
uch
Bon
d by
$5,
000.
In
the
eve
nt t
hat
only
a p
ortio
n of
the
prin
cipa
l su
m o
f a
Bon
d is
rede
emed
, upo
n su
rren
der o
f the
suc
h B
ond
at th
e pr
inci
pal o
ffic
e of
the
Reg
istra
r the
re s
hall
be
issu
ed to
the
Reg
iste
red
Ow
ner,
with
out c
harg
e th
eref
or, f
or th
e th
en u
nred
eem
ed b
alan
ce o
f the
prin
cipa
l sum
the
reof
, at t
he o
ptio
n of
the
Reg
iste
red
Ow
ner,
a B
ond
or B
onds
of
like
serie
s,
mat
urity
and
inte
rest
rate
in a
ny o
f the
den
omin
atio
ns h
erei
n au
thor
ized
.
B-10
-1
9-
(g
) N
otic
e of
Red
empt
ion.
(1)
Off
icia
l Not
ice .
U
nles
s w
aive
d by
any
ow
ner
of B
onds
to b
e re
deem
ed,
offic
ial
notic
e of
any
suc
h re
dem
ptio
n (w
hich
not
ice,
in
the
case
of
a co
nditi
onal
red
empt
ion,
shal
l sta
te th
at re
dem
ptio
n is
con
ditio
ned
by th
e R
egis
trar
on th
e re
ceip
t of
suff
icie
nt f
unds
for
rede
mpt
ion)
sha
ll be
giv
en b
y th
e R
egis
trar o
n be
half
of th
e U
nive
rsity
by
mai
ling
a co
py o
f an
offic
ial r
edem
ptio
n no
tice
by f
irst c
lass
mai
l at l
east
twen
ty (
20)
days
and
not
mor
e th
an s
ixty
(60)
day
s prio
r to
the
date
fixe
d fo
r red
empt
ion
to th
e R
egis
tere
d O
wne
r of t
he B
ond
or B
onds
to
be r
edee
med
at t
he a
ddre
ss s
how
n on
the
Reg
iste
r or
at
such
oth
er a
ddre
ss a
s is
fur
nish
ed i
n
writ
ing
by su
ch R
egis
tere
d O
wne
r to
the
Reg
istra
r.
A
ll of
ficia
l not
ices
of r
edem
ptio
n sh
all b
e da
ted
and
shal
l sta
te:
(A
) th
e re
dem
ptio
n da
te,
(B
) th
e re
dem
ptio
n pr
ice,
(C
) if
few
er t
han
all
Out
stan
ding
Bon
ds a
re t
o be
red
eem
ed,
the
iden
tific
atio
n by
ser
ies
and
mat
urity
(an
d, i
n th
e ca
se o
f pa
rtial
red
empt
ion,
the
res
pect
ive
prin
cipa
l am
ount
s) o
f the
Bon
ds to
be
rede
emed
,
(D
) th
at o
n th
e re
dem
ptio
n da
te, p
rovi
ded
that
in th
e ca
se o
f op
tiona
l
rede
mpt
ion
the
full
amou
nt o
f the
rede
mpt
ion
pric
e is
on
depo
sit t
here
for,
the
rede
mpt
ion
pric
e
will
bec
ome
due
and
paya
ble
upon
eac
h su
ch B
ond
or p
ortio
n th
ereo
f cal
led
for r
edem
ptio
n, a
nd
that
inte
rest
ther
eon
shal
l cea
se to
acc
rue
from
and
afte
r sai
d da
te,
(E
) th
e pl
ace
whe
re s
uch
Bon
ds a
re to
be
surr
ende
red
for
paym
ent o
f
the
rede
mpt
ion
pric
e, w
hich
pla
ce o
f pay
men
t sha
ll be
the
prin
cipa
l off
ice
of th
e R
egis
trar,
and
-2
0-
(F
) th
at th
e no
tice
of re
dem
ptio
n m
ay b
e w
ithdr
awn
and
the
prop
osed
rede
mpt
ion
of B
onds
can
celle
d if
for a
ny re
ason
fund
s w
ill n
ot b
e av
aila
ble
on th
e da
te fi
xed
for
rede
mpt
ion.
U
nles
s th
e U
nive
rsity
has
rev
oked
the
not
ice
of r
edem
ptio
n, o
n or
prio
r to
any
rede
mpt
ion
date
, the
Tre
asur
er s
hall
depo
sit w
ith th
e R
egis
trar a
n am
ount
of m
oney
suf
ficie
nt to
pay
the
rede
mpt
ion
pric
e of
all
the
Bon
ds o
r por
tions
of B
onds
whi
ch a
re to
be
rede
emed
on
that
date
.
Fa
ilure
to g
ive
notic
e as
to re
dem
ptio
n of
any
Bon
d or
any
def
ect i
n su
ch n
otic
e sh
all n
ot
inva
lidat
e re
dem
ptio
n of
any
oth
er B
ond.
N
otw
ithst
andi
ng th
e fo
rego
ing,
if th
e B
onds
are
then
hel
d in
boo
k-en
try o
nly
form
, not
ice
of r
edem
ptio
n to
any
Reg
iste
red
Ow
ner
or b
enef
icia
l ow
ner
of B
onds
, sha
ll be
giv
en o
nly
in
acco
rdan
ce w
ith t
he o
pera
tiona
l arr
ange
men
ts th
en e
ffec
t at
DTC
but
not
less
than
thi
rty (
30)
days
prio
r to
the
date
of r
edem
ptio
n.
(2)
Effe
ct o
f N
otic
e; B
onds
Due
. O
ffic
ial n
otic
e of
red
empt
ion
havi
ng b
een
give
n as
afo
resa
id, t
he B
onds
or
porti
ons
of B
onds
so
to b
e re
deem
ed s
hall,
on
the
rede
mpt
ion
date
(unl
ess
in th
e ca
se o
f con
ditio
nal r
edem
ptio
n th
e co
nditi
ons
have
not
bee
n fu
lfille
d an
d th
e
notic
e or
red
empt
ion
ther
efor
e w
ithdr
awn)
, be
com
e du
e an
d pa
yabl
e at
the
red
empt
ion
pric
e
ther
ein
spec
ified
, and
fro
m a
nd a
fter
such
dat
e su
ch B
onds
or
porti
ons
of B
onds
sha
ll ce
ase
to
bear
inte
rest
. U
pon
surr
ende
r of s
uch
Bon
ds fo
r red
empt
ion
in a
ccor
danc
e w
ith sa
id n
otic
e, su
ch
Bon
ds s
hall
be p
aid
by th
e R
egis
trar a
t the
rede
mpt
ion
pric
e. I
nsta
llmen
ts o
f int
eres
t due
on
or
prio
r to
a m
anda
tory
rede
mpt
ion
date
shal
l be
paya
ble
as h
erei
n pr
ovid
ed fo
r pay
men
t of i
nter
est.
Upo
n su
rrend
er f
or a
ny p
artia
l re
dem
ptio
n of
any
Bon
d, t
here
sha
ll be
pre
pare
d fo
r th
e
Reg
iste
red
Ow
ner a
new
Bon
d or
Bon
ds o
f the
sam
e se
ries a
nd m
atur
ity in
the
aggr
egat
e am
ount
B-11
-2
1-
of th
e un
paid
prin
cipa
l. A
ll B
onds
whi
ch h
ave
been
rede
emed
sha
ll be
can
cele
d an
d de
stro
yed
by th
e R
egis
trar a
nd sh
all n
ot b
e re
issu
ed.
(3)
Add
ition
al N
otic
e . I
n ad
ditio
n to
the
fore
goin
g no
tice,
furth
er n
otic
e m
ay
be g
iven
by
the
Uni
vers
ity a
s set
out
bel
ow, b
ut n
o de
fect
in sa
id fu
rther
not
ice
nor a
ny fa
ilure
to
give
all
or a
ny p
ortio
n of
such
furth
er n
otic
e sh
all i
n an
y m
anne
r def
eat t
he e
ffec
tiven
ess o
f a c
all
for r
edem
ptio
n if
notic
e th
ereo
f is
give
n as
abo
ve p
resc
ribed
. Ea
ch fu
rther
not
ice
of re
dem
ptio
n
give
n he
reun
der s
hall
cont
ain
the
info
rmat
ion
requ
ired
abov
e fo
r an
offic
ial n
otic
e of
rede
mpt
ion
plus
(A) t
he C
USI
P nu
mbe
rs o
f all
Bon
ds b
eing
rede
emed
; (B
) the
dat
e of
issu
e of
the
Bon
ds a
s
orig
inal
ly is
sued
; (C
) th
e ra
te o
f int
eres
t bor
ne b
y ea
ch B
ond
bein
g re
deem
ed; (
D)
the
mat
urity
date
of e
ach
Bon
d be
ing
rede
emed
; and
(E) a
ny o
ther
des
crip
tive
info
rmat
ion
need
ed to
iden
tify
accu
rate
ly th
e B
onds
bei
ng r
edee
med
. Ea
ch f
urth
er n
otic
e of
red
empt
ion
may
be
sent
at l
east
twen
ty (2
0) d
ays
befo
re th
e re
dem
ptio
n da
te to
eac
h pa
rty e
ntitl
ed to
rece
ive
notic
e pu
rsua
nt to
Sect
ion
19 o
f th
is R
esol
utio
n, a
nd t
o th
e or
igin
al p
urch
aser
of
the
Bon
ds o
r to
its
bus
ines
s
succ
esso
rs, i
f any
, and
to s
uch
pers
ons
(incl
udin
g se
curit
ies
repo
sito
ries
who
cus
tom
arily
at t
he
time
rece
ive
notic
es o
f re
dem
ptio
n in
acc
orda
nce
with
rul
es p
rom
ulga
ted
by th
e Se
curit
ies
and
Exch
ange
Com
mis
sion
) and
with
suc
h ad
ditio
nal i
nfor
mat
ion
as th
e R
egis
trar d
eem
app
ropr
iate
,
but s
uch
mai
lings
shal
l not
be
a co
nditi
on p
rece
dent
to th
e re
dem
ptio
n of
such
Bon
ds.
(4)
Use
of
CU
SIP
Num
bers
. U
pon
the
paym
ent
of t
he r
edem
ptio
n pr
ice
of
Bon
ds b
eing
rede
emed
, eac
h ch
eck
or o
ther
tran
sfer
of f
unds
issu
ed fo
r suc
h pu
rpos
e sh
all b
ear
the
CU
SIP
num
ber i
dent
ifyin
g, b
y m
atur
ity, t
he B
onds
bei
ng re
deem
ed w
ith th
e pr
ocee
ds o
f suc
h
chec
k or
oth
er tr
ansf
er.
(5)
Am
endm
ent o
f Not
ice
Prov
isio
ns.
The
fore
goin
g no
tice
prov
isio
ns o
f thi
s
Sect
ion
3, in
clud
ing
but n
ot li
mite
d to
the
info
rmat
ion
to b
e in
clud
ed in
rede
mpt
ion
notic
es a
nd
-2
2-
the
pers
ons
desi
gnat
ed to
rece
ive
notic
es, m
ay b
e am
ende
d by
add
ition
s, de
letio
ns a
nd c
hang
es
in o
rder
to
mai
ntai
n co
mpl
ianc
e w
ith d
uly
prom
ulga
ted
regu
latio
ns a
nd r
ecom
men
datio
ns
rega
rdin
g no
tices
of r
edem
ptio
n of
mun
icip
al se
curit
ies.
Se
ctio
n 4 .
Pl
ace
and
Med
ium
of
Paym
ent.
The
prin
cipa
l of
, pre
miu
m, i
f an
y, a
nd
inte
rest
on
the
Bon
ds s
hall
be p
ayab
le in
law
ful m
oney
of t
he U
nite
d St
ates
of A
mer
ica.
Int
eres
t
on th
e B
onds
sha
ll be
cal
cula
ted
on th
e ba
sis
of a
thre
e hu
ndre
d si
xty
(360
) day
yea
r con
sist
ing
of tw
elve
, thi
rty (3
0) d
ay m
onth
s. F
or s
o lo
ng a
s al
l Bon
ds a
re in
fully
imm
obili
zed
form
, suc
h
paym
ents
of
prin
cipa
l an
d in
tere
st t
here
on s
hall
be m
ade
as p
rovi
ded
in t
he o
pera
tiona
l
arra
ngem
ents
of D
TC a
s ref
erre
d to
in th
e Le
tter o
f Rep
rese
ntat
ions
.
In
the
even
t tha
t the
Bon
ds a
re n
o lo
nger
in fu
lly im
mob
ilize
d fo
rm, i
nter
est o
n th
e B
onds
shal
l be
paid
by
chec
k or
dra
ft m
aile
d (o
r by
wire
tran
sfer
to a
Reg
iste
red
Ow
ner o
f suc
h B
onds
in a
ggre
gate
prin
cipa
l am
ount
of $
1,00
0,00
0 or
mor
e w
ho s
o re
ques
ts) t
o th
e R
egis
tere
d O
wne
rs
of th
e B
onds
at t
he a
ddre
sses
for s
uch
Reg
iste
red
Ow
ners
app
earin
g on
the
Bon
d R
egis
ter o
n th
e
15th
day
of t
he m
onth
pre
cedi
ng th
e in
tere
st p
aym
ent d
ate.
Prin
cipa
l and
pre
miu
m, i
f any
, of t
he
Bon
ds sh
all b
e pa
yabl
e up
on p
rese
ntat
ion
and
surre
nder
of s
uch
Bon
ds b
y th
e R
egis
tere
d O
wne
rs
at th
e pr
inci
pal o
ffic
e of
the
Reg
istra
r.
Se
ctio
n 5 .
R
egis
tratio
n.
(a
) R
egis
trar
/Bon
d R
egis
ter.
The
Uni
vers
ity h
ereb
y sp
ecifi
es a
nd a
dopt
s th
e sy
stem
of r
egis
tratio
n fo
r th
e B
onds
as
appr
oved
by
the
Stat
e Fi
nanc
e C
omm
ittee
of
the
Stat
e of
Was
hing
ton
from
tim
e to
tim
e. T
he U
nive
rsity
sha
ll ca
use
a bo
nd re
gist
er to
be
mai
ntai
ned
by
the
Reg
istra
r. S
o lo
ng a
s an
y B
onds
rem
ain
Out
stan
ding
, the
Reg
istra
r sha
ll m
ake
all n
eces
sary
prov
isio
ns to
per
mit
the
exch
ange
and
regi
stra
tion
of tr
ansf
er o
f Bon
ds a
t its
prin
cipa
l cor
pora
te
trust
off
ice.
The
Reg
istra
r may
be
rem
oved
at a
ny ti
me
at th
e op
tion
of th
e Tr
easu
rer u
pon
prio
r
B-12
-2
3-
notic
e to
the
Reg
istra
r, th
e In
sure
r, an
d a
succ
esso
r R
egis
trar
appo
inte
d by
the
Trea
sure
r. N
o
resi
gnat
ion
or r
emov
al o
f th
e R
egis
trar
shal
l be
eff
ectiv
e un
til a
suc
cess
or s
hall
have
bee
n
appo
inte
d an
d un
til t
he s
ucce
ssor
Reg
istra
r sh
all
have
acc
epte
d th
e du
ties
of t
he R
egis
trar
here
unde
r. T
he R
egis
trar
is a
utho
rized
, on
beha
lf of
the
Uni
vers
ity, t
o au
then
ticat
e an
d de
liver
Bon
ds t
rans
ferr
ed o
r ex
chan
ged
in a
ccor
danc
e w
ith t
he p
rovi
sion
s of
suc
h B
onds
and
thi
s
reso
lutio
n an
d to
car
ry o
ut a
ll of
the
Reg
istra
r’s
pow
ers
and
dutie
s un
der
this
Res
olut
ion.
Th
e
Reg
istra
r sh
all
be
resp
onsi
ble
for
its
repr
esen
tatio
ns
cont
aine
d in
th
e C
ertif
icat
e of
Aut
hent
icat
ion
on th
e B
onds
.
(b
) R
egis
tere
d O
wne
rshi
p.
The
Uni
vers
ity a
nd th
e R
egis
trar,
each
in it
s di
scre
tion,
may
dee
m a
nd tr
eat t
he R
egis
tere
d O
wne
r of
eac
h B
ond
as th
e ab
solu
te o
wne
r th
ereo
f fo
r al
l
purp
oses
and
nei
ther
the
Uni
vers
ity n
or t
he R
egis
trar
shal
l be
aff
ecte
d by
any
not
ice
to t
he
cont
rary
. Pa
ymen
t of
any
such
Bon
d sh
all b
e m
ade
only
as
desc
ribed
in S
ectio
n 4
here
of, b
ut
such
Bon
d m
ay b
e tra
nsfe
rred
as h
erei
n pr
ovid
ed.
All
such
pay
men
ts m
ade
as d
escr
ibed
in
Sect
ion
5 sh
all b
e va
lid a
nd s
hall
satis
fy a
nd d
isch
arge
the
liabi
lity
of th
e U
nive
rsity
upo
n su
ch
Bon
d to
the
exte
nt o
f the
am
ount
or a
mou
nts s
o pa
id.
(c
) D
TC
Acc
epta
nce/
Let
ter
of R
epre
sent
atio
ns.
To in
duce
DTC
to a
ccep
t the
Bon
ds
as e
ligib
le f
or d
epos
it at
DTC
, th
e U
nive
rsity
has
exe
cute
d an
d de
liver
ed a
Let
ter
of
Rep
rese
ntat
ions
to D
TC.
N
eith
er th
e U
nive
rsity
nor
the
Reg
istra
r will
hav
e an
y re
spon
sibi
lity
or o
blig
atio
n to
DTC
parti
cipa
nts
or t
he p
erso
ns f
or w
hom
the
y ac
t as
nom
inee
s (o
r an
y su
cces
sor
depo
sito
ry)
with
resp
ect
to t
he B
onds
in
resp
ect
of t
he a
ccur
acy
of a
ny r
ecor
ds m
aint
aine
d by
DTC
(or
any
succ
esso
r de
posi
tory
) or
any
DTC
par
ticip
ant,
the
paym
ent
by D
TC (
or a
ny s
ucce
ssor
depo
sito
ry)
or a
ny D
TC p
artic
ipan
t of
any
amou
nt in
res
pect
of
the
prin
cipa
l of
or in
tere
st o
n
-2
4-
Bon
ds, a
ny n
otic
e w
hich
is p
erm
itted
or
requ
ired
to b
e gi
ven
to R
egis
tere
d O
wne
rs u
nder
this
Res
olut
ion
(exc
ept s
uch
notic
es a
s sha
ll be
requ
ired
to b
e gi
ven
by th
e U
nive
rsity
to th
e R
egis
trar
or to
DTC
(or a
ny su
cces
sor d
epos
itory
)), o
r any
con
sent
giv
en o
r oth
er a
ctio
n ta
ken
by D
TC (o
r
any
succ
esso
r dep
osito
ry) a
s th
e R
egis
tere
d O
wne
r. F
or s
o lo
ng a
s an
y B
onds
are
hel
d in
fully
imm
obili
zed
form
her
eund
er,
DTC
or
its s
ucce
ssor
dep
osito
ry s
hall
be d
eem
ed t
o be
the
Reg
iste
red
Ow
ner
for
all
purp
oses
her
eund
er (
exce
pt a
s pr
ovid
ed i
n Se
ctio
n 19
of
this
reso
lutio
n),
and
all
refe
renc
es h
erei
n to
the
Reg
iste
red
Ow
ners
sha
ll m
ean
DTC
(or
any
succ
esso
r dep
osito
ry) o
r its
nom
inee
and
sha
ll no
t mea
n th
e ow
ners
of a
ny b
enef
icia
l int
eres
t in
such
Bon
ds.
If
any
Bon
d sh
all b
e du
ly p
rese
nted
for p
aym
ent a
nd fu
nds
have
not
bee
n du
ly p
rovi
ded
by th
e U
nive
rsity
on
such
app
licab
le d
ate,
then
inte
rest
sha
ll co
ntin
ue to
acc
rue
ther
eafte
r on
the
unpa
id p
rinci
pal t
here
of a
t the
rate
stat
ed o
n su
ch B
ond
until
such
Bon
d is
pai
d.
(d
) U
se o
f Dep
osit
ory.
(1)
The
Bon
ds s
hall
be re
gist
ered
initi
ally
in th
e na
me
of “
CED
E &
CO
.”, a
s
nom
inee
of
DTC
, w
ith o
ne B
ond
mat
urin
g on
eac
h of
the
mat
urity
dat
es f
or t
he B
onds
in
a
deno
min
atio
n co
rres
pond
ing
to t
he t
otal
prin
cipa
l th
erei
n de
sign
ated
to
mat
ure
on s
uch
date
.
Reg
iste
red
owne
rshi
p of
suc
h im
mob
ilize
d B
onds
, or a
ny p
ortio
ns th
ereo
f, m
ay n
ot th
erea
fter b
e
trans
ferr
ed e
xcep
t (A
) to
any
succ
esso
r of D
TC o
r its
nom
inee
, pro
vide
d th
at a
ny s
uch
succ
esso
r
shal
l be
qual
ified
und
er a
ny a
pplic
able
law
s to
pro
vide
the
serv
ice
prop
osed
to b
e pr
ovid
ed b
y it;
(B) t
o an
y su
bstit
ute
depo
sito
ry a
ppoi
nted
by
the
Trea
sure
r pur
suan
t to
subs
ectio
n (2
) bel
ow o
r
such
subs
titut
e de
posi
tory
’s su
cces
sor;
or (C
) to
any
pers
on a
s pro
vide
d in
subs
ectio
n (4
) bel
ow.
(2)
Upo
n th
e re
sign
atio
n of
DTC
or i
ts s
ucce
ssor
(or a
ny s
ubst
itute
dep
osito
ry
or i
ts s
ucce
ssor
) fr
om i
ts f
unct
ions
as
depo
sito
ry o
r a
dete
rmin
atio
n by
the
Tre
asur
er t
o
B-13
-2
5-
disc
ontin
ue th
e sy
stem
of
book
ent
ry tr
ansf
ers
thro
ugh
DTC
or
its s
ucce
ssor
(or
any
sub
stitu
te
depo
sito
ry o
r its
suc
cess
or),
the
Trea
sure
r m
ay h
erea
fter
appo
int a
sub
stitu
te d
epos
itory
. A
ny
such
sub
stitu
te d
epos
itory
sha
ll be
qua
lifie
d un
der
any
appl
icab
le la
ws
to p
rovi
de th
e se
rvic
es
prop
osed
to b
e pr
ovid
ed b
y it.
(3)
In th
e ca
se o
f any
tran
sfer
pur
suan
t to
clau
se (A
) or (
B) o
f sub
sect
ion
(1)
abov
e, th
e R
egis
trar s
hall,
upo
n re
ceip
t of a
ll ou
tsta
ndin
g B
onds
, tog
ethe
r with
a w
ritte
n re
ques
t
of th
e Tr
easu
rer,
issu
e a
sing
le n
ew B
ond
for
each
mat
urity
then
out
stan
ding
, reg
iste
red
in th
e
nam
e of
suc
h su
cces
sor o
r suc
h su
bstit
ute
depo
sito
ry, o
r the
ir no
min
ees,
as th
e ca
se m
ay b
e, a
ll
as sp
ecifi
ed in
such
writ
ten
requ
est o
f the
Tre
asur
er.
(4)
In th
e ev
ent t
hat (
A)
DTC
or
its s
ucce
ssor
(or
subs
titut
e de
posi
tory
or
its
succ
esso
r) re
sign
s fro
m it
s fu
nctio
ns a
s de
posi
tory
, and
no
subs
titut
e de
posi
tory
can
be
obta
ined
,
or (B
) the
Tre
asur
er d
eter
min
es th
at it
is in
the
best
inte
rest
of t
he b
enef
icia
l ow
ners
of t
he B
onds
that
suc
h ow
ners
be
able
to o
btai
n su
ch b
onds
in th
e fo
rm o
f Bon
d ce
rtific
ates
, the
ow
ners
hip
of
such
Bon
ds m
ay t
hen
be t
rans
ferr
ed t
o an
y pe
rson
or
entit
y as
her
ein
prov
ided
, and
sha
ll no
long
er b
e he
ld in
ful
ly-im
mob
ilize
d fo
rm.
The
Trea
sure
r sh
all d
eliv
er a
writ
ten
requ
est t
o th
e
Reg
istra
r, to
geth
er w
ith a
sup
ply
of d
efin
itive
Bon
ds, t
o is
sue
Bon
ds a
s he
rein
pro
vide
d in
any
auth
oriz
ed d
enom
inat
ion.
Upo
n re
ceip
t by
the
Reg
istra
r of
all
then
out
stan
ding
Bon
ds to
geth
er
with
a w
ritte
n re
ques
t of
the
Tre
asur
er t
o th
e R
egis
trar,
new
Bon
ds s
hall
be i
ssue
d in
the
appr
opria
te d
enom
inat
ions
and
regi
ster
ed in
the
nam
es o
f suc
h pe
rson
s as
are
requ
este
d in
suc
h
writ
ten
requ
est.
(e
) R
egis
trat
ion
of T
rans
fer
of O
wne
rshi
p or
Exc
hang
e; C
hang
e in
Den
omin
atio
ns.
If t
he B
onds
are
no
long
er h
eld
in b
ook-
entry
onl
y fo
rm,
the
trans
fer
of a
ny B
ond
may
be
regi
ster
ed a
nd B
onds
may
be
exch
ange
d, b
ut n
o tra
nsfe
r of a
ny s
uch
Bon
d sh
all b
e va
lid u
nles
s
-2
6-
such
Bon
d is
surr
ende
red
to th
e R
egis
trar w
ith th
e as
sign
men
t for
m a
ppea
ring
on su
ch B
ond
duly
exec
uted
by
the
Reg
iste
red
Ow
ner
or s
uch
Reg
iste
red
Ow
ner’
s du
ly a
utho
rized
age
nt i
n a
man
ner
satis
fact
ory
to t
he R
egis
trar.
Upo
n su
ch s
urre
nder
, th
e R
egis
trar
shal
l ca
ncel
the
surr
ende
red
Bon
d an
d sh
all a
uthe
ntic
ate
and
deliv
er, w
ithou
t cha
rge
to th
e R
egis
tere
d O
wne
r or
trans
fere
e th
eref
or, a
new
Bon
d (o
r B
onds
at t
he o
ptio
n of
the
new
Reg
iste
red
Ow
ner)
of th
e
sam
e se
ries,
date
, mat
urity
and
inte
rest
rate
and
for t
he s
ame
aggr
egat
e pr
inci
pal a
mou
nt in
any
auth
oriz
ed d
enom
inat
ion,
nam
ing
as R
egis
tere
d O
wne
r th
e pe
rson
or
pers
ons
liste
d as
the
assi
gnee
on
the
assi
gnm
ent
form
app
earin
g on
the
sur
rend
ered
Bon
d, i
n ex
chan
ge f
or s
uch
surr
ende
red
and
canc
eled
Bon
d.
If th
e B
onds
are
no
long
er h
eld
in b
ook-
entry
onl
y fo
rm, a
ny
Bon
d m
ay b
e su
rrend
ered
to th
e R
egis
trar a
nd e
xcha
nged
, with
out c
harg
e, fo
r an
equa
l agg
rega
te
prin
cipa
l am
ount
of
Bon
ds o
f th
e sa
me
date
, m
atur
ity a
nd i
nter
est
rate
, in
any
aut
horiz
ed
deno
min
atio
n or
den
omin
atio
ns.
The
Reg
istra
r sha
ll no
t be
oblig
ated
to re
gist
er th
e tra
nsfe
r or t
o
exch
ange
any
Bon
d du
ring
the
fifte
en (
15)
days
pre
cedi
ng t
he d
ate
any
such
Bon
d is
to
be
rede
emed
.
(f
) R
egis
trar
’s O
wne
rshi
p of
Bon
ds.
The
Reg
istra
r m
ay b
ecom
e th
e R
egis
tere
d
Ow
ner
of a
ny B
ond
with
the
sam
e rig
hts
it w
ould
hav
e if
it w
ere
not t
he R
egis
trar,
and
to th
e
exte
nt p
erm
itted
by
law
, may
act
as
depo
sito
ry fo
r an
d pe
rmit
any
of it
s of
ficer
s or
dire
ctor
s to
act a
s m
embe
r of,
or in
any
oth
er c
apac
ity w
ith re
spec
t to,
any
com
mitt
ee fo
rmed
to p
rote
ct th
e
right
of t
he R
egis
tere
d O
wne
rs o
f Bon
ds.
(g
) R
egis
trat
ion
Cov
enan
t. T
he U
nive
rsity
cov
enan
ts th
at, u
ntil
all B
onds
hav
e be
en
surr
ende
red
and
canc
eled
, it w
ill m
aint
ain
a sy
stem
for
rec
ordi
ng th
e ow
ners
hip
of e
ach
Bon
d
that
com
plie
s with
the
prov
isio
ns o
f Sec
tion
149
of th
e C
ode.
B-14
-2
7-
Se
ctio
n 6.
Fo
rm, E
xecu
tion
and
Aut
hent
icat
ion
of B
onds
.
(a)
For
m o
f Bon
ds.
The
Bon
ds sh
all b
e in
subs
tant
ially
the
follo
win
g fo
rm:
UN
ITED
STA
TES
OF
AM
ERIC
A
NO
.
$_
____
__
ST
ATE
OF
WA
SHIN
GTO
N
WES
TER
N W
ASH
ING
TON
UN
IVER
SITY
ST
UD
ENT
REC
REA
TIO
N F
EE R
EVEN
UE
AN
D R
EFU
ND
ING
BO
ND
S, 2
012
IN
TER
EST
RA
TE:
%
M
ATU
RIT
Y D
ATE
: C
USI
P N
O.:
REG
ISTE
RED
OW
NER
:
PRIN
CIP
AL
AM
OU
NT:
Wes
tern
Was
hing
ton
Uni
vers
ity (
the
“Uni
vers
ity”)
, her
eby
ackn
owle
dges
its
elf
to o
we
and
for
valu
e re
ceiv
ed p
rom
ises
to p
ay to
the
Reg
iste
red
Ow
ner
iden
tifie
d ab
ove,
or
regi
ster
ed
assi
gns,
on th
e M
atur
ity D
ate
iden
tifie
d ab
ove,
the
Prin
cipa
l Am
ount
indi
cate
d ab
ove
and
to p
ay
inte
rest
fro
m _
____
____
___,
201
2, o
r th
e m
ost r
ecen
t dat
e to
whi
ch in
tere
st h
as b
een
paid
or
duly
pro
vide
d fo
r, un
til p
aym
ent o
f th
is B
ond
at th
e In
tere
st R
ate
set f
orth
abo
ve, p
ayab
le o
n __
____
___
1, 2
012,
and
sem
iann
ually
ther
eafte
r on
the
first
day
s of
eac
h su
ccee
ding
May
and
N
ovem
ber.
Bot
h pr
inci
pal
of a
nd i
nter
est
on t
his
Bon
d ar
e pa
yabl
e in
law
ful
mon
ey o
f th
e U
nite
d St
ates
of
Am
eric
a.
Inte
rest
sha
ll be
pai
d as
pro
vide
d in
the
Bla
nket
Iss
uer
Lette
r of
R
epre
sent
atio
ns (
the
“Let
ter
of R
epre
sent
atio
ns”)
by
the
Uni
vers
ity t
o Th
e D
epos
itory
Tru
st
Com
pany
(“D
TC”)
. Pr
inci
pal s
hall
be p
aid
as p
rovi
ded
in th
e Le
tter
of R
epre
sent
atio
ns to
the
Reg
iste
red
Ow
ner o
r ass
igns
upo
n pr
esen
tatio
n an
d su
rren
der o
f thi
s B
ond
at th
e pr
inci
pal o
ffic
e of
the
fisca
l age
ncy
of th
e St
ate
of W
ashi
ngto
n (th
e “R
egis
trar”
).
This
Bon
d is
one
of
an a
utho
rized
iss
ue o
f B
onds
of
like
date
and
ten
or, e
xcep
t as
to
num
ber,
amou
nt,
rate
of
inte
rest
and
dat
e of
mat
urity
, in
the
agg
rega
te p
rinci
pal
amou
nt o
f $_
____
_ (th
e “B
onds
”),
and
is i
ssue
d pu
rsua
nt t
o R
esol
utio
n N
o. 2
012-
01 (
the
“Bon
d R
esol
utio
n”) p
asse
d by
the
Boa
rd o
f Tru
stee
s of
the
Uni
vers
ity o
n Fe
brua
ry 1
0, 2
012
[to p
rovi
de
fund
s to
mak
e im
prov
emen
ts t
o re
crea
tiona
l fa
cilit
ies
of t
he U
nive
rsity
,] re
fund
cer
tain
ou
tsta
ndin
g R
even
ue B
onds
of
the
Uni
vers
ity a
nd p
ay c
osts
of
issu
ance
of
the
Bon
ds.
Cap
italiz
ed te
rms
used
in
this
Bon
d an
d no
t ot
herw
ise
defin
ed s
hall
have
the
mea
ning
s gi
ven
them
in th
e B
ond
Res
olut
ion.
The
Uni
vers
ity r
eser
ves
the
right
to
rede
em t
he B
onds
mat
urin
g on
and
afte
r M
ay 1
, __
____
_, in
who
le o
r in
part
on a
ny d
ate
on o
r afte
r May
1, _
____
, at p
ar, p
lus a
ccru
ed in
tere
st to
th
e da
te o
f red
empt
ion.
The
Bon
ds a
re p
ayab
le s
olel
y fr
om t
he s
peci
al f
und
of t
he U
nive
rsity
kno
wn
as t
he
“Rec
reat
ion
Cen
ter
Bon
d Fu
nd,
incl
udin
g al
l ac
coun
ts t
here
in”
(the
“Bon
d Fu
nd”)
[an
d th
e C
omm
on R
eser
ve F
und]
mai
ntai
ned
by th
e B
ond
Res
olut
ion
in th
e of
fice
of th
e Tr
easu
rer o
f the
-2
8-
Uni
vers
ity.
The
Uni
vers
ity h
as ir
revo
cabl
y ob
ligat
ed a
nd b
ound
itse
lf to
pay
into
the
Bon
d Fu
nd
out
of t
he S
RC
Fee
and
Rec
reat
ion
Cen
ter
Rev
enue
s or
fro
m s
uch
othe
r m
oney
as
may
be
prov
ided
for
suc
h pu
rpos
e ce
rtain
am
ount
s ne
cess
ary
to p
ay a
nd s
ecur
e th
e pa
ymen
t of
the
pr
inci
pal a
nd in
tere
st o
n su
ch b
onds
.
The
Uni
vers
ity h
as p
ledg
ed to
set
asi
de fr
om th
e R
even
ue A
ccou
nt o
ut o
f the
Rec
reat
ion
Cen
ter R
even
ues
and
the
SRC
Fee
and
to p
ay in
to th
e B
ond
Fund
the
vario
us a
mou
nts
requ
ired
by th
e B
ond
Res
olut
ion
to b
e pa
id in
to a
nd m
aint
aine
d in
suc
h Fu
nd w
ithin
the
times
pro
vide
d by
the
Bon
d R
esol
utio
n.
To
the
exte
nt m
ore
parti
cula
rly p
rovi
ded
by th
e B
ond
Res
olut
ion,
the
amou
nts s
o pl
edge
d to
be
paid
of A
vaila
ble
Fund
s int
o th
e B
ond
Fund
shal
l be
a lie
n an
d ch
arge
ther
eon
equa
l in
rank
to
the
lie
n an
d ch
arge
upo
n su
ch R
ecre
atio
n C
ente
r R
even
ue a
nd S
RC
Fee
of
the
amou
nts
requ
ired
to p
ay a
nd s
ecur
e an
y R
even
ue B
onds
her
eafte
r iss
ued
on a
par
ity w
ith th
e B
onds
and
su
perio
r to
all o
ther
lien
s and
cha
rges
of a
ny k
ind
or n
atur
e.
Th
e U
nive
rsity
cov
enan
ts th
at it
will
per
form
all
the
cove
nant
s of
this
Bon
d an
d of
the
Bon
d R
esol
utio
n, a
nd re
fere
nce
is h
ereb
y m
ade
to th
e B
ond
Res
olut
ion
for a
com
plet
e st
atem
ent
of su
ch c
oven
ants
.
This
Bon
d is
a s
peci
al li
mite
d ob
ligat
ion
of th
e U
nive
rsity
and
is n
ot a
n ob
ligat
ion
of th
e St
ate
of W
ashi
ngto
n or
any
pol
itica
l sub
divi
sion
ther
eof
othe
r th
an th
e U
nive
rsity
, and
nei
ther
th
e fu
ll fa
ith a
nd c
redi
t no
r th
e ta
pow
er o
f th
e U
nive
rsity
or
the
Stat
e of
Was
hing
ton
is
pled
ged
to th
e pa
ymen
t of t
his B
ond.
This
Bon
d sh
all n
ot b
e va
lid o
r bec
ome
oblig
ator
y fo
r any
pur
pose
or b
e en
title
d to
any
se
curit
y or
ben
efit
unde
r th
e B
ond
Res
olut
ion
until
the
Cer
tific
ate
of A
uthe
ntic
atio
n ha
s be
en
man
ually
sign
ed b
y th
e R
egis
trar.
It
is h
ereb
y ce
rtifie
d th
at a
ll ac
ts, c
ondi
tions
and
thin
gs re
quire
d by
the
Con
stitu
tion
and
stat
utes
of
the
Stat
e of
Was
hing
ton
to e
xist
, to
hav
e ha
ppen
ed,
been
don
e an
d pe
rform
ed
prec
eden
t to
and
in th
e is
suan
ce o
f thi
s B
ond
have
hap
pene
d, b
een
done
and
per
form
ed a
nd th
at
the
issu
ance
of
this
Bon
d an
d th
e bo
nds
of t
his
serie
s do
es n
ot v
iola
te a
ny c
onst
itutio
nal,
stat
utor
y or
oth
er li
mita
tion
upon
the
amou
nt o
f bo
nded
ind
ebte
dnes
s th
at t
he U
nive
rsity
may
in
cur.
B-15
-2
9-
Th
e U
nive
rsity
has
cau
sed
this
Bon
d to
be
exec
uted
by
the
man
ual o
r fac
sim
ile s
igna
ture
of
the
Cha
ir of
the
Boa
rd o
f Tru
stee
s an
d to
be
atte
sted
by
the
man
ual o
r fac
sim
ile s
igna
ture
of
the
Secr
etar
y of
the
Boa
rd o
f Tru
stee
s, an
d ha
s ca
used
the
seal
of t
he U
nive
rsity
to b
e im
pres
sed
or im
prin
ted
on th
is B
ond,
as o
f thi
s ___
_ da
y of
___
____
____
____
201
2.
W
ESTE
RN
WA
SHIN
GTO
N U
NIV
ERSI
TY
By
/s
/
Cha
ir, B
oard
of T
rust
ees
ATT
EST:
/s
/
Secr
etar
y, B
oard
of T
rust
ees
Th
e R
egis
trar’s
Cer
tific
ate
of A
uthe
ntic
atio
n on
the
Bon
ds s
hall
be in
sub
stan
tially
the
follo
win
g fo
rm:
C
ERTI
FIC
ATE
OF
AU
THEN
TIC
ATI
ON
This
is o
ne o
f the
Stu
dent
Rec
reat
ion
Fee
Rev
enue
and
Ref
undi
ng B
onds
, Ser
ies
2012
of
Wes
tern
Was
hing
ton
Uni
vers
ity, d
ated
___
____
____
, 201
2, d
escr
ibed
in th
e B
ond
Res
olut
ion.
WA
SHIN
GTO
N S
TATE
FIS
CA
L A
GEN
CY
, as R
egis
trar
By
A
utho
rized
Sig
nato
ry
(b
) E
xecu
tion
and
Aut
hent
icat
ion
of B
onds
. Th
e B
onds
shal
l be
exec
uted
on
beha
lf of
the
Uni
vers
ity b
y th
e C
hair
of th
e B
oard
and
sha
ll be
atte
sted
by
the
Secr
etar
y of
the
Boa
rd b
y
eith
er m
anua
l or f
acsi
mile
sig
natu
res.
In th
e ev
ent t
hat a
ny o
f the
off
icer
s of
the
Uni
vers
ity w
ho
shal
l hav
e ex
ecut
ed o
r atte
sted
the
Bon
ds s
hall
ceas
e to
be
offic
ers
of th
e U
nive
rsity
bef
ore
the
Bon
ds s
hall
have
bee
n is
sued
and
del
iver
ed b
y th
e U
nive
rsity
, the
Bon
ds n
ever
thel
ess
may
be
deliv
ered
and
issu
ed, a
nd u
pon
such
del
iver
y an
d is
sue,
sha
ll be
bin
ding
upo
n th
e U
nive
rsity
as
thou
gh th
ose
offic
ers
who
sig
ned
the
sam
e ha
d co
ntin
ued
to b
e su
ch o
ffic
ers
of th
e U
nive
rsity
.
-3
0-
Furth
er, t
he B
onds
may
be
sign
ed o
n be
half
of th
e U
nive
rsity
by
such
an
offic
er w
ho, o
n th
e da
te
of e
xecu
tion
of th
e B
onds
, is a
pro
per o
ffic
er o
f the
Uni
vers
ity, a
lthou
gh o
n th
e da
te b
orne
by
the
Bon
ds su
ch o
ffic
er sh
all n
ot h
ave
held
such
off
ice.
Th
e B
onds
sha
ll be
sig
ned
unde
r th
e of
ficia
l sea
l of
the
Uni
vers
ity, a
nd s
aid
seal
, or
a
facs
imile
ther
eof,
shal
l be
impr
esse
d, im
prin
ted
or o
ther
wis
e re
prod
uced
ther
eon.
If a
facs
imile
seal
is
used
, su
ch f
acsi
mile
or
repr
oduc
ed s
eal
is h
ereb
y ad
opte
d as
the
off
icia
l se
al o
f th
e
Uni
vers
ity fo
r suc
h B
onds
.
N
o B
ond
shal
l be
valid
or o
blig
ator
y fo
r any
pur
pose
nor
sha
ll th
e R
egis
tere
d O
wne
r of
such
Bon
d be
ent
itled
to a
ny r
ight
or
bene
fit h
ereu
nder
, unl
ess
the
Reg
istra
r sh
all h
ave
sign
ed
man
ually
on
such
Bon
d a
Cer
tific
ate
of A
uthe
ntic
atio
n ap
pear
ing
on s
uch
Bon
d.
Such
Cer
tific
ate
of A
uthe
ntic
atio
n up
on a
ny B
ond
shal
l be
con
clus
ive
evid
ence
tha
t th
e B
ond
so
auth
entic
ated
has
bee
n du
ly i
ssue
d un
der
this
Res
olut
ion
and
that
the
Reg
iste
red
Ow
ner
is
entit
led
to th
e be
nefit
s of
this
Res
olut
ion.
No
Bon
d sh
all b
e au
then
ticat
ed e
xcep
t in
acco
rdan
ce
with
this
Sec
tion
6.
Se
ctio
n 7 .
R
even
ue A
ccou
nt.
(a)
Rev
enue
Acc
ount
. Th
e U
nive
rsity
has
est
ablis
hed
a sp
ecia
l fun
d to
be
mai
ntai
ned
sepa
rate
and
apa
rt fr
om a
ll ot
her
fund
s an
d ac
coun
ts o
f th
e U
nive
rsity
, an
d kn
own
as t
he
“Stu
dent
Rec
reat
ion
Rev
enue
Acc
ount
” (th
e “R
even
ue A
ccou
nt”)
.
Th
e U
nive
rsity
cov
enan
ts to
dep
osit
or c
ause
to b
e de
posi
ted
into
the
Rev
enue
Acc
ount
,
upon
rec
eipt
, all
Rec
reat
ion
Cen
ter
Rev
enue
and
the
SR
C F
ee a
nd t
he n
et i
ncom
e ea
rned
on
inve
stm
ents
in th
e R
even
ue A
ccou
nt.
B-16
-3
1-
(b
) F
low
of
Fun
ds;
Pri
orit
ies.
Th
e U
nive
rsity
cov
enan
ts t
o us
e th
e m
oney
and
inve
stm
ents
in th
e R
even
ue A
ccou
nt, a
nd p
ledg
es s
uch
mon
ey a
nd in
vest
men
ts, s
olel
y fo
r th
e
follo
win
g pu
rpos
es (i
n or
der o
f prio
rity)
:
(1)
For
trans
fers
to
the
Bon
d Fu
nd t
o pa
y th
e pr
inci
pal
of,
inte
rest
on
or
prem
ium
, if a
ny, o
n th
e B
onds
;
(2)
To p
ay c
osts
of
oper
atio
n an
d m
aint
enan
ce o
f th
e R
ecre
atio
n C
ente
r an
d
the
rela
ted
stud
ent r
ecre
atio
n pr
ogra
ms;
(3)
To m
ake
all
paym
ents
req
uire
d to
be
mad
e in
to t
he C
omm
on R
eser
ve
Fund
to m
aint
ain
the
Com
mon
Res
erve
Req
uire
men
t if
ther
e ar
e O
utst
andi
ng C
over
ed B
onds
,
and
into
any
oth
er r
eser
ve f
und
or a
ccou
nt e
stab
lishe
d fo
r Pa
rity
Bon
ds t
hat
are
Unc
over
ed
Bon
ds o
r to
mee
t a
reim
burs
emen
t ob
ligat
ion
with
res
pect
to
any
Qua
lifie
d In
sura
nce
or
Qua
lifie
d Le
tter o
f Cre
dit o
r oth
er c
redi
t enh
ance
men
t dev
ice,
if so
requ
ired
by R
esol
utio
n of
the
Boa
rd;
(4)
For t
rans
fers
to th
e R
enew
al a
nd R
epla
cem
ent R
eser
ve A
ccou
nt n
eces
sary
to m
eet a
nd m
aint
ain
the
Ren
ewal
and
Rep
lace
men
t Res
erve
Req
uire
men
t;
(5)
For t
rans
fers
to a
ny s
peci
al fu
nds
esta
blis
hed
for t
he p
aym
ent o
f prin
cipa
l
of a
nd in
tere
st o
n an
y R
even
ue B
onds
or o
ther
reve
nue
oblig
atio
ns h
avin
g a
lien
upon
the
mon
ey
and
inve
stm
ents
in th
e R
even
ue A
ccou
nt ju
nior
and
subo
rdin
ate
to th
e lie
n of
the
Bon
ds;
(6
) Fo
r est
ablis
hmen
t of r
easo
nabl
e op
erat
ing
rese
rves
; or
(7
) Fo
r th
e pu
rcha
se o
f an
y O
utst
andi
ng B
onds
and
/or
Parit
y B
onds
at
any
pric
e de
emed
reas
onab
le to
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity o
r the
def
easa
nce
of
Out
stan
ding
Bon
ds a
nd/o
r Par
ity B
onds
.
-3
2-
(c)
Tra
nsfe
rs f
rom
Rev
enue
Acc
ount
to B
ond
Fun
d. O
n or
bef
ore
the
day
prio
r to
the
due
date
ther
eof,
or, w
ith re
spec
t to
any
Bon
ds th
at a
re in
sure
d, th
e fif
th d
ay p
rior t
o th
e du
e da
te
ther
eof,
and
cont
inui
ng f
or s
o lo
ng a
s an
y B
onds
are
Out
stan
ding
, the
Uni
vers
ity c
oven
ants
to
trans
fer
to t
he B
ond
Fund
fro
m t
he R
even
ue A
ccou
nt,
mon
ey a
nd i
nves
tmen
ts e
qual
to
the
inte
rest
or
prin
cipa
l or
pre
miu
m,
if an
y, c
omin
g du
e on
the
Bon
ds o
n su
ch d
ue d
ate.
Th
e
Uni
vers
ity a
lso
may
redu
ce th
e am
ount
of a
ny tr
ansf
er re
quire
d to
be
mad
e to
the
Bon
d Fu
nd o
n
the
day,
or,
with
resp
ect t
o an
y B
onds
that
are
insu
red,
the
fifth
day
, im
med
iate
ly p
rece
ding
eac
h
inte
rest
pay
men
t dat
e by
an
amou
nt e
qual
to a
ll am
ount
s av
aila
ble
to p
ay p
rinci
pal,
inte
rest
or
prem
ium
on
the
Bon
ds o
n de
posi
t th
erei
n an
d to
the
ext
ent
that
suc
h am
ount
s ha
ve n
ot
prev
ious
ly b
een
cred
ited
agai
nst s
uch
paym
ents
.
(d
) R
enew
al a
nd R
epla
cem
ent
Res
erve
Acc
ount
. T
he U
nive
rsity
has
est
ablis
hed
a
spec
ial
trust
fun
d de
sign
ated
as
the
“Ren
ewal
and
Rep
lace
men
t R
eser
ve A
ccou
nt,”
and
sha
ll
keep
such
Ren
ewal
and
Rep
lace
men
t Res
erve
Acc
ount
sepa
rate
and
apa
rt fr
om a
ll ot
her a
ccou
nts
and
mon
eys
held
by
it, a
nd s
hall
adm
inis
ter s
uch
Ren
ewal
and
Rep
lace
men
t Res
erve
Acc
ount
as
prov
ided
in th
is S
ectio
n 7(
d).
(1)
Dep
osits
. A
s of J
une
30, 2
008,
the
Uni
vers
ity u
pdat
ed it
s Cap
ital R
enew
al
Man
agem
ent P
lan,
and
est
ablis
hed
an a
nnua
l dep
osit
requ
irem
ent o
f $2
50,0
00 e
ach
fisca
l yea
r,
from
200
9 th
roug
h 20
14.
Prio
r to
Jun
e 30
, 201
3 an
d ea
ch f
ive
year
s th
erea
fter,
the
Uni
vers
ity
shal
l up
date
the
Cap
ital
Ren
ewal
Man
agem
ent
Plan
, w
hich
pla
n sh
all
iden
tify
futu
re c
apita
l
expe
nditu
re
requ
irem
ents
fo
r th
e R
ecre
atio
n C
ente
r an
d re
com
men
d th
e R
enew
al
and
Rep
lace
men
t Res
erve
Req
uire
men
t for
the
follo
win
g fiv
e ye
ars.
The
Uni
vers
ity w
ill u
se it
s be
st
effo
rts to
fol
low
suc
h pl
an, i
nclu
ding
a m
odifi
catio
n, if
any
, of
the
Ren
ewal
and
Rep
lace
men
t
B-17
-3
3-
Res
erve
Req
uire
men
t an
d sh
all
esta
blis
h pr
ior
to e
ach
such
Jun
e 30
, th
e R
enew
al a
nd
Rep
lace
men
t Res
erve
Req
uire
men
t in
effe
ct fo
r the
nex
t fiv
e ye
ars.
(2)
Dis
burs
emen
ts.
The
mon
eys
depo
site
d in
the
Ren
ewal
and
Rep
lace
men
t
Res
erve
Acc
ount
sha
ll be
dis
burs
ed a
t any
tim
e up
on th
e w
ritte
n re
ques
t of t
he U
nive
rsity
to p
ay
expe
nses
und
er t
he C
apita
l R
enew
al M
anag
emen
t Pl
an, n
on-r
outin
e m
aint
enan
ce a
nd u
pgra
de
expe
nses
of
the
Rec
reat
ion
Cen
ter
and/
or f
or u
nant
icip
ated
cap
ital
need
s fo
r th
e R
ecre
atio
n
Cen
ter.
The
mon
eys
cred
ited
to t
he R
enew
al a
nd R
epla
cem
ent
Res
erve
Acc
ount
sha
ll no
t be
com
min
gled
, exc
ept
for
inve
stm
ent
purp
oses
, with
any
oth
er m
oney
s of
the
Uni
vers
ity.
Any
mon
eys
rem
aini
ng in
the
Ren
ewal
and
Rep
lace
men
t Res
erve
Acc
ount
afte
r all
Parit
y B
onds
are
no lo
nger
Out
stan
ding
may
be
used
for a
ny p
urpo
se o
f the
Uni
vers
ity.
Se
ctio
n 8 .
B
ond
Fund
and
Com
mon
Res
erve
Fun
d.
(a)
Bon
d F
und.
A
spe
cial
fun
d of
the
Uni
vers
ity d
esig
nate
d th
e “R
ecre
atio
n C
ente
r
Bon
d Fu
nd”
(the
“Bon
d Fu
nd”)
is h
ereb
y au
thor
ized
to b
e cr
eate
d in
the
offic
e of
the
Trea
sure
r
for t
he p
urpo
se o
f pay
ing
and
secu
ring
the
paym
ent o
f Par
ity B
onds
, whi
ch F
und
is to
be
draw
n
upon
for
the
sol
e pu
rpos
e of
pay
ing
the
prin
cipa
l of
, pre
miu
m, i
f an
y, a
nd i
nter
est
on P
arity
Bon
ds, a
s the
sam
e sh
all b
ecom
e du
e.
(1
) Th
e U
nive
rsity
her
eby
oblig
ates
and
bin
ds i
tsel
f, an
d th
e Tr
easu
rer
is
here
by a
utho
rized
and
dire
cted
, as s
oon
as th
e B
onds
are
del
iver
ed a
nd p
aid
for,
to se
t asi
de fr
om
the
proc
eeds
of t
he sa
le th
ereo
f and
pay
into
the
Bon
d Fu
nd a
ll ac
crue
d in
tere
st re
ceiv
ed th
ereo
n.
(2
) Th
e U
nive
rsity
her
eby
furth
er o
blig
ates
and
bin
ds it
self,
and
the
Trea
sure
r
is h
ereb
y au
thor
ized
and
dire
cted
, to
set a
side
and
pay
into
the
Bon
d Fu
nd f
rom
the
Rev
enue
Acc
ount
, th
ose
amou
nts
whi
ch,
toge
ther
with
any
mon
ey o
n ha
nd i
n th
e B
ond
Fund
, ar
e
-3
4-
nece
ssar
y to
pay
the
int
eres
t on
the
Bon
ds,
and
to p
ay t
he p
rinci
pal
of t
he B
onds
as
such
prin
cipa
l and
inte
rest
bec
ome
due
and
paya
ble.
(3)
Said
am
ount
s so
ple
dged
in s
ubse
ctio
n (b
) of t
his
sect
ion
to b
e pa
id o
ut o
f
the
Rev
enue
Acc
ount
int
o th
e B
ond
Fund
and
int
o th
e C
omm
on R
eser
ve F
und
as h
erei
nafte
r
prov
ided
, are
her
eby
decl
ared
to b
e a
prio
r lie
n an
d ch
arge
upo
n th
e R
ecre
atio
n C
ente
r Rev
enue
and
the
SRC
Fee
and
/or t
he m
onie
s in
the
Rev
enue
Acc
ount
sup
erio
r to
all o
ther
cha
rges
of a
ny
kind
or
natu
re w
hats
oeve
r ex
cept
that
the
amou
nts
so p
ledg
ed a
re e
qual
in r
ank
to a
ny c
harg
es
upon
suc
h R
ecre
atio
n C
ente
r R
even
ue a
nd t
he S
RC
Fee
and
/or
the
mon
ies
in t
he R
even
ue
Acc
ount
whi
ch m
ay h
erea
fter
be m
ade
to p
ay a
nd s
ecur
e th
e pa
ymen
t of
the
prin
cipa
l of
and
inte
rest
on
any
Add
ition
al B
onds
.
(b
) C
omm
on R
eser
ve F
und.
Th
e Tr
easu
rer
is h
ereb
y au
thor
ized
and
dire
cted
to
esta
blis
h a
Com
mon
Res
erve
Fun
d fo
r th
e pu
rpos
e of
sec
urin
g th
e pa
ymen
t of t
he p
rinci
pal o
f,
prem
ium
, if
any,
and
int
eres
t on
all
Cov
ered
Bon
ds.
The
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity is
furth
er a
utho
rized
to d
esig
nate
or n
ot to
des
igna
te th
e B
onds
as
Cov
ered
Bon
ds o
r
in th
e al
tern
ativ
e to
est
ablis
h a
sepa
rate
rese
rve
acco
unt w
ithin
the
Bon
d Fu
nd fo
r the
pur
pose
of
secu
ring
the
Bon
ds.
Any
suc
h se
para
te r
eser
ve s
hall
be f
unde
d an
d ad
min
iste
red
as p
rovi
ded
here
in w
ith r
espe
ct to
the
Com
mon
Res
erve
Fun
d, a
lthou
gh th
e se
para
te a
ccou
nt w
ould
sec
ure
only
the
Bon
ds o
f thi
s is
sue,
and
the
dolla
r am
ount
of t
he re
serv
e re
quire
men
t wou
ld b
e se
t for
th
in th
e O
ffic
ial N
otic
e of
Sal
e or
Pur
chas
e C
ontra
ct.
The
Res
olut
ion
auth
oriz
ing
the
issu
ance
of
each
ser
ies
of A
dditi
onal
Bon
ds m
ay p
rovi
de th
at th
e se
ries
of A
dditi
onal
Bon
ds w
ill b
e is
sued
as “
Cov
ered
Bon
ds”
or, i
n th
e al
tern
ativ
e, p
rovi
de w
heth
er a
sep
arat
e re
serv
e se
curin
g on
ly th
at
serie
s of
Add
ition
al B
onds
sho
uld
be e
stab
lishe
d.
The
Com
mon
Res
erve
Fun
d m
ay b
e
esta
blis
hed
as a
sep
arat
e fu
nd o
r mai
ntai
ned
as a
n ac
coun
t or s
ubac
coun
t with
in th
e B
ond
Fund
.
B-18
-3
5-
The
Com
mon
Res
erve
Fun
d sh
all b
e m
aint
aine
d in
an
amou
nt n
ot le
ss th
an th
e C
omm
on R
eser
ve
Req
uire
men
t, su
bjec
t to
per
mitt
ed w
ithdr
awal
s of
am
ount
s in
exc
ess
of t
he C
omm
on R
eser
ve
Req
uire
men
t, of
am
ount
s to
pay
deb
t ser
vice
on
Cov
ered
Bon
ds in
the
even
t of a
def
icie
ncy
in a
Bon
d Fu
nd fo
r Cov
ered
Bon
ds, o
f am
ount
s to
pay
the
prin
cipa
l of,
prem
ium
, if a
ny, a
nd in
tere
st
on a
ll O
utst
andi
ng C
over
ed B
onds
, of
am
ount
s be
ing
repl
aced
by
Qua
lifie
d In
sura
nce
or a
Qua
lifie
d Le
tter
of C
redi
t, an
d of
am
ount
s re
quire
d to
pre
vent
any
Bon
ds f
rom
bec
omin
g
“Arb
itrag
e B
onds
,” in
eac
h ca
se a
s pro
vide
d he
rein
. Th
e C
omm
on R
eser
ve R
equi
rem
ent s
hall
be
mai
ntai
ned
by d
epos
its o
f ca
sh a
nd/o
r qu
alifi
ed i
nves
tmen
ts,
a Q
ualif
ied
Lette
r of
Cre
dit
or
Qua
lifie
d In
sura
nce,
or a
com
bina
tion
of th
e fo
rego
ing.
To
the
exte
nt th
at th
e U
nive
rsity
obt
ains
a Q
ualif
ied
Lette
r of
Cre
dit o
r Q
ualif
ied
Insu
ranc
e in
sub
stitu
tion
for
cash
or
secu
ritie
s in
the
Com
mon
Res
erve
Fun
d, a
ll or
a p
ortio
n of
the
mon
ey o
n ha
nd in
the
Com
mon
Res
erve
Fun
d
shal
l be
tra
nsfe
rred
to
the
fund
or
acco
unt,
spec
ified
by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity w
ithin
the
limita
tions
per
mitt
ed b
y th
e ta
x co
vena
nts,
if an
y, fo
r the
Cov
ered
Bon
ds.
In c
ompu
ting
the
amou
nt o
n ha
nd in
the
Com
mon
Res
erve
Fun
d, Q
ualif
ied
Insu
ranc
e an
d/or
a
Qua
lifie
d Le
tter o
f Cre
dit s
hall
be v
alue
d at
the
low
er o
f the
face
am
ount
ther
eof a
nd th
e am
ount
avai
labl
e to
be
draw
n th
ereu
nder
, and
all
othe
r obl
igat
ions
pur
chas
ed a
s an
inve
stm
ent o
f mon
eys
ther
ein
shal
l be
mar
ked-
to-m
arke
t, at
leas
t onc
e an
nual
ly a
nd a
t the
tim
e of
any
with
draw
al fr
om
the
Com
mon
Res
erve
Fun
d.
As
used
her
ein,
the
term
“ca
sh”
shal
l inc
lude
U.S
. cur
renc
y, c
ash
equi
vale
nts
and
evid
ence
s th
ereo
f, in
clud
ing
dem
and
depo
sits
and
cer
tifie
d or
cas
hier
’s c
heck
s;
and
the
depo
sit
to t
he C
omm
on R
eser
ve F
und
may
be
satis
fied
by t
he t
rans
fer
of q
ualif
ied
inve
stm
ents
to s
uch
acco
unt.
If a
def
icie
ncy
in th
e C
omm
on R
eser
ve F
und
shal
l exi
st a
s a
resu
lt
of t
he f
oreg
oing
val
uatio
n, s
uch
defic
ienc
y sh
all
be m
ade
up i
n eq
ual
mon
thly
ins
tallm
ents
with
in a
yea
r the
reaf
ter.
-3
6-
If
the
bala
nce
on h
and
in th
e C
omm
on R
eser
ve F
und
is s
uffic
ient
to s
atis
fy th
e C
omm
on
Res
erve
Req
uire
men
t, in
tere
st e
arni
ngs
ther
eon
shal
l be
app
lied
as p
rovi
ded
in t
he f
ollo
win
g
sent
ence
s. W
hene
ver t
here
is a
suf
ficie
nt a
mou
nt in
the
Bon
d Fu
nds
for t
he C
over
ed B
onds
and
the
Com
mon
Res
erve
Fun
d to
pay
the
prin
cipa
l of
, pr
emiu
m,
if an
y, a
nd i
nter
est
on a
ll
Out
stan
ding
Cov
ered
Bon
ds, t
he m
oney
in th
e C
omm
on R
eser
ve F
und
may
be
used
to p
ay s
uch
prin
cipa
l and
inte
rest
. So
long
as
the
mon
ey le
ft re
mai
ning
on
depo
sit i
n th
e C
omm
on R
eser
ve
Fund
is n
ot le
ss th
an th
e C
omm
on R
eser
ve R
equi
rem
ent,
mon
ey in
the
Com
mon
Res
erve
Fun
d
may
be
trans
ferr
ed to
the
fund
or a
ccou
nt s
peci
fied
in w
ritin
g by
the
Aut
horiz
ed R
epre
sent
ativ
e
of th
e U
nive
rsity
with
in th
e lim
itatio
ns p
erm
itted
by
the
tax
cove
nant
s fo
r th
e C
over
ed B
onds
.
The
Uni
vers
ity a
lso
may
tra
nsfe
r ou
t of
the
Com
mon
Res
erve
Fun
d an
y m
oney
req
uire
d to
prev
ent a
ny B
onds
from
bec
omin
g “A
rbitr
age
Bon
ds.”
If
a de
ficie
ncy
in a
ny B
ond
Fund
for a
ser
ies
of C
over
ed B
onds
sha
ll oc
cur i
mm
edia
tely
prio
r to
an in
tere
st p
aym
ent d
ate,
suc
h de
ficie
ncy
shal
l be
mad
e up
from
the
Com
mon
Res
erve
Fund
by
the
with
draw
al o
f cas
h th
eref
rom
for t
hat p
urpo
se (i
nclu
ding
cas
h pr
ovid
ed b
y th
e sa
le
or re
dem
ptio
n of
obl
igat
ions
hel
d in
the
Com
mon
Res
erve
Fun
d, in
such
am
ount
s as w
ill p
rovi
de
cash
in th
e C
omm
on R
eser
ve F
und
suff
icie
nt to
mak
e up
any
suc
h de
ficie
ncy
with
resp
ect t
o th
e
Cov
ered
Bon
ds),
and
if a
defic
ienc
y in
any
Bon
d Fu
nd fo
r a s
erie
s of
Cov
ered
Bon
ds s
till e
xist
s
imm
edia
tely
prio
r to
the
inte
rest
pay
men
t dat
e fo
r su
ch s
erie
s of
Cov
ered
Bon
ds a
nd a
fter
the
trans
fer
of c
ash
from
the
Com
mon
Res
erve
Fun
d to
suc
h B
ond
Fund
, the
Uni
vers
ity s
hall
then
draw
fro
m a
ny Q
ualif
ied
Lette
r of
Cre
dit o
r Q
ualif
ied
Insu
ranc
e th
en c
redi
ted
to th
e C
omm
on
Res
erve
Fun
d in
suf
ficie
nt a
mou
nt to
mak
e up
the
defic
ienc
y.
If t
he a
mou
nt in
the
Com
mon
Res
erve
Fun
d is
ins
uffic
ient
to
mak
e up
all
defic
ienc
ies
in t
he B
ond
Fund
(s)
for
all
Cov
ered
Bon
ds c
omin
g du
e on
a C
over
ed B
ond
paym
ent d
ate,
the
defic
ienc
ies
shal
l be
mad
e up
on
a pr
o
B-19
-3
7-
rata
bas
is b
ased
on
the
prin
cipa
l, if
any,
and
inte
rest
pay
men
ts c
omin
g du
e on
Cov
ered
Bon
ds o
n
such
int
eres
t pa
ymen
t da
te.
Any
dra
w o
n a
Qua
lifie
d Le
tter
of C
redi
t or
Qua
lifie
d In
sura
nce
shal
l be
mad
e at
such
tim
es a
nd u
nder
such
con
ditio
ns a
s the
agr
eem
ent f
or su
ch Q
ualif
ied
Lette
r
of C
redi
t or s
uch
Qua
lifie
d In
sura
nce
shal
l pro
vide
. R
eim
burs
emen
t may
be
mad
e to
the
issu
er
of a
ny Q
ualif
ied
Lette
r of
Cre
dit o
r Q
ualif
ied
Insu
ranc
e in
acc
orda
nce
with
the
reim
burs
emen
t
agre
emen
t rel
ated
ther
eto,
and
afte
r mak
ing
nece
ssar
y pr
ovis
ion
for t
he p
aym
ents
requ
ired
to b
e
mad
e in
par
agra
phs
(b)(
1) a
nd (
2) o
f Se
ctio
n 7
of th
is R
esol
utio
n. I
f th
e U
nive
rsity
sha
ll ha
ve
faile
d to
mak
e an
y pa
ymen
t req
uire
d to
be
mad
e un
der
such
rei
mbu
rsem
ent a
gree
men
t for
the
Cov
ered
Bon
ds, t
he is
suer
sha
ll be
ent
itled
to e
xerc
ise
all r
emed
ies
avai
labl
e at
law
or u
nder
this
Res
olut
ion;
pro
vide
d, h
owev
er,
that
no
acce
lera
tion
of t
he B
onds
sha
ll be
per
mitt
ed,
and
no
rem
edie
s th
at a
dver
sely
affe
ct t
he b
enef
icia
l ow
ners
of
the
Bon
ds s
hall
be p
erm
itted
. A
ny
defic
ienc
y cr
eate
d in
the
Com
mon
Res
erve
Fun
d by
rea
son
of a
ny s
uch
with
draw
al s
hall
be
mad
e up
with
in tw
o ye
ars,
from
Qua
lifie
d In
sura
nce
or a
Qua
lifie
d Le
tter o
f Cre
dit o
r out
of N
et
Rev
enue
s (o
r ou
t of
any
othe
r m
oney
s on
han
d le
gally
ava
ilabl
e fo
r su
ch p
urpo
se),
in tw
enty
-
four
(24
) eq
ual
mon
thly
ins
tallm
ents
, af
ter
first
mak
ing
nece
ssar
y pr
ovis
ion
for
all
paym
ents
requ
ired
to b
e m
ade
into
the
Bon
d Fu
nds f
or C
over
ed B
onds
with
in su
ch y
ear.
In
mak
ing
the
paym
ents
and
cre
dits
to
the
Com
mon
Res
erve
Fun
d re
quire
d by
thi
s
Sect
ion
8, to
the
exte
nt th
at th
e U
nive
rsity
has
obt
aine
d Q
ualif
ied
Insu
ranc
e or
a Q
ualif
ied
Lette
r
of C
redi
t for
spe
cific
am
ount
s re
quire
d pu
rsua
nt to
this
sec
tion
to b
e pa
id o
ut o
f th
e C
omm
on
Res
erve
Fun
d, s
uch
amou
nts
then
ava
ilabl
e to
be
draw
n un
der
such
Qua
lifie
d In
sura
nce
or a
Qua
lifie
d Le
tter o
f Cre
dit s
hall
be c
redi
ted
agai
nst t
he a
mou
nts
requ
ired
to b
e m
aint
aine
d in
the
Com
mon
Res
erve
Fun
d by
this
Sec
tion
8 to
the
exte
nt th
at su
ch p
aym
ents
and
cre
dits
to b
e m
ade
are
to b
e m
ade
or i
nsur
ed b
y th
e is
suer
of
such
Qua
lifie
d In
sura
nce,
or
are
to b
e m
ade
or
-3
8-
guar
ante
ed b
y a
Qua
lifie
d Le
tter
of C
redi
t. I
f a
Cre
dit
Even
t oc
curs
, th
e C
omm
on R
eser
ve
Req
uire
men
t sha
ll be
sat
isfie
d (A
) with
in o
ne (1
) yea
r afte
r the
occ
urre
nce
of s
uch
Cre
dit E
vent
with
oth
er Q
ualif
ied
Insu
ranc
e or
ano
ther
Qua
lifie
d Le
tter o
f Cre
dit,
or (B
) with
in th
ree
(3) y
ears
(in th
ree
equa
l ann
ual i
nsta
llmen
ts) a
fter t
he o
ccur
renc
e of
suc
h C
redi
t Eve
nt, o
ut o
f Rec
reat
ion
Cen
ter
Rev
enue
s (o
r ou
t of
othe
r m
oney
on
hand
and
lega
lly a
vaila
ble
for
such
pur
pose
) af
ter
first
mak
ing
nece
ssar
y pr
ovis
ions
for
all
paym
ents
req
uire
d to
be
mad
e in
to th
e B
ond
Fund
for
Cov
ered
Bon
ds.
(e
) U
se o
f E
xces
s M
oney
. M
oney
in th
e B
ond
Fund
not
nee
ded
to p
ay th
e in
tere
st o
r
prin
cipa
l an
d in
tere
st n
ext
com
ing
due
on a
ny O
utst
andi
ng B
onds
or
to m
aint
ain
requ
ired
rese
rves
ther
efor
may
be
used
to p
urch
ase
or r
edee
m a
nd r
etire
Bon
ds.
Mon
ey in
the
Rev
enue
Fund
, the
Bon
d Fu
nd a
nd th
e C
omm
on R
eser
ve F
und,
if a
ny, m
ay b
e co
mm
ingl
ed fo
r inv
estm
ent
purp
oses
and
may
be
inve
sted
in a
ny in
vest
men
ts le
gal f
or th
e U
nive
rsity
.
Se
ctio
n 9 .
A
pplic
atio
n of
Bon
d Pr
ocee
ds a
nd C
all
for
Red
empt
ion
of R
efun
ded
Bon
ds.
(a)
Impr
ovem
ent
Bon
ds.
The
Trea
sure
r cur
rent
ly m
aint
ains
a fu
nd o
f the
Uni
vers
ity
(the
“Pro
ject
Fun
d”) i
nto
whi
ch th
e pr
ocee
ds o
f the
Impr
ovem
ent B
onds
shal
l be
depo
site
d at
the
time
of c
losi
ng.
Mon
ey o
n ha
nd i
n th
e Pr
ojec
t Fu
nd s
hall
be u
sed
to p
ay t
he c
osts
of
or
reim
burs
e th
e U
nive
rsity
for
the
paym
ent o
f th
e co
sts
of th
e Pr
ojec
t and
the
cost
s of
fun
ding
a
prop
ortio
nate
sha
re o
f co
sts
of is
suan
ce o
f th
e B
onds
. Th
e Tr
easu
rer
or h
is/h
er d
esig
nee
may
inve
st m
oney
in th
e Pr
ojec
t Fun
d in
lega
l inv
estm
ents
for
Uni
vers
ity f
unds
. Ea
rnin
gs o
n su
ch
inve
stm
ents
sha
ll ac
crue
to
the
bene
fit o
f th
e fu
nd e
arni
ng s
uch
inte
rest
. A
ny p
art
of t
he
proc
eeds
of t
he B
onds
rem
aini
ng in
the
Proj
ect F
und
afte
r all
cost
s of
the
Proj
ect h
ave
been
pai
d
B-20
-3
9-
(incl
udin
g co
sts
of is
suan
ce) m
ay b
e us
ed fo
r any
recr
eatio
nal c
apita
l pur
pose
of t
he U
nive
rsity
or m
ay b
e tra
nsfe
rred
to th
e D
ebt S
ervi
ce A
ccou
nt.
(b)
Ref
undi
ng B
onds
. U
nles
s th
e R
efun
ded
Bon
ds w
ill b
e re
deem
ed s
imul
tane
ous
with
del
iver
y of
the
Bon
d pr
ocee
ds, t
he p
roce
eds
of s
ale
of th
e R
efun
ding
Bon
ds in
the
dolla
r
amou
nt c
ertif
ied
by th
e U
nive
rsity
to th
e Es
crow
Age
nt s
hall
be d
eliv
ered
to th
e Es
crow
Age
nt
for t
he p
urpo
se o
f def
easi
ng th
e R
efun
ded
Bon
ds a
nd p
ayin
g re
late
d co
sts o
f iss
uanc
e.
M
oney
rece
ived
by
the
Escr
ow A
gent
from
Bon
d pr
ocee
ds a
nd o
ther
mon
ey p
rovi
ded
by
the
Uni
vers
ity,
shal
l be
use
d im
med
iate
ly b
y th
e Es
crow
Age
nt u
pon
rece
ipt
ther
eof
in
acco
rdan
ce w
ith t
he t
erm
s of
the
Esc
row
Agr
eem
ent
to d
efea
se t
he R
efun
ded
Bon
ds a
s
auth
oriz
ed b
y th
e 20
02 B
ond
Res
olut
ion,
and
to p
ay c
osts
of
issu
ance
of
the
Ref
undi
ng B
onds
.
If th
e R
efun
ded
Bon
ds w
ill n
ot b
e pa
id a
nd re
deem
ed o
n th
e da
te o
f iss
uanc
e of
the
Bon
ds, t
he
Uni
vers
ity sh
all d
efea
se th
e R
efun
ded
Bon
ds a
nd d
isch
arge
such
obl
igat
ions
by
the
use
of m
oney
depo
site
d w
ith th
e Es
crow
Age
nt to
pur
chas
e ce
rtain
Gov
ernm
ent O
blig
atio
ns (w
hich
obl
igat
ions
so p
urch
ased
, are
her
ein
calle
d “A
cqui
red
Obl
igat
ions
”), b
earin
g su
ch in
tere
st a
nd m
atur
ing
as to
prin
cipa
l an
d in
tere
st i
n su
ch a
mou
nts
and
at s
uch
times
whi
ch,
toge
ther
with
any
nec
essa
ry
begi
nnin
g ca
sh b
alan
ce, w
ill p
rovi
de fo
r the
pay
men
t of:
(1)
inte
rest
on
the
Ref
unde
d B
onds
com
ing
due
on th
e C
all D
ate;
and
(2)
the
rede
mpt
ion
pric
e (1
00%
of
the
prin
cipa
l am
ount
ther
eof)
on th
e C
all
Dat
e of
the
Ref
unde
d B
onds
.
Su
ch A
cqui
red
Obl
igat
ions
sha
ll be
pur
chas
ed a
t a
yiel
d no
t gr
eate
r th
an t
he y
ield
perm
itted
by
the
Cod
e an
d re
gula
tions
rel
atin
g to
acq
uire
d ob
ligat
ions
in
conn
ectio
n w
ith
Ref
undi
ng B
ond
issu
es.
-4
0-
(b
) A
ppoi
ntm
ent
of E
scro
w A
gent
. T
he A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
is h
ereb
y au
thor
ized
to d
eter
min
e w
heth
er o
r not
an
Escr
ow A
gent
will
be
requ
ired
and,
if s
o, to
appo
int a
qua
lifie
d ba
nkin
g as
soci
atio
n to
act
as
the
escr
ow a
gent
(the
“Es
crow
Age
nt”)
for t
he
Ref
unde
d B
onds
. A
beg
inni
ng c
ash
bala
nce,
if a
ny, a
nd A
cqui
red
Obl
igat
ions
shal
l be
depo
site
d
irrev
ocab
ly w
ith th
e Es
crow
Age
nt in
an
amou
nt s
uffic
ient
to d
efea
se th
e R
efun
ded
Bon
ds.
The
proc
eeds
of
the
Ref
undi
ng B
onds
rem
aini
ng a
fter
acqu
isiti
on o
f th
e A
cqui
red
Obl
igat
ions
and
prov
isio
n fo
r th
e ne
cess
ary
begi
nnin
g ca
sh b
alan
ce s
hall
be u
tiliz
ed t
o pa
y ex
pens
es o
f th
e
acqu
isiti
on a
nd s
afek
eepi
ng o
f th
e A
cqui
red
Obl
igat
ions
and
exp
ense
s of
the
iss
uanc
e of
the
Ref
undi
ng B
onds
and
/or r
etur
ned
to th
e U
nive
rsity
for t
he p
aym
ent o
f suc
h ex
pens
es.
(c)
Cal
l fo
r R
edem
ptio
n of
Ref
unde
d B
onds
. I
f th
e R
efun
ded
Bon
ds w
ill n
ot b
e
rede
emed
on
the
date
of
issu
ance
of
the
Bon
ds,
the
Uni
vers
ity h
ereb
y irr
evoc
ably
set
s as
ide
suff
icie
nt f
unds
out
of
the
purc
hase
of
Acq
uire
d O
blig
atio
ns f
rom
pro
ceed
s of
the
Ref
undi
ng
Bon
ds to
mak
e th
e pa
ymen
ts d
escr
ibed
in S
ectio
n 9(
a) o
f thi
s Res
olut
ion.
Th
e U
nive
rsity
her
eby
irrev
ocab
ly c
alls
the
Ref
unde
d B
onds
for r
edem
ptio
n on
the
Cal
l
Dat
e in
acc
orda
nce
with
ter
ms
of t
he 2
002
Bon
d R
esol
utio
n pu
rsua
nt t
o w
hich
the
Ref
unde
d
Bon
ds w
as i
ssue
d au
thor
izin
g th
e re
dem
ptio
n an
d re
tirem
ent
of t
he R
efun
ded
Bon
ds p
rior
to
thei
r fix
ed m
atur
ities
.
Sa
id d
efea
sanc
e an
d ca
ll fo
r re
dem
ptio
n of
the
Ref
unde
d B
onds
sha
ll be
irre
voca
ble
on
the
date
of
issu
ance
of
the
Bon
ds if
the
Ref
unde
d B
onds
are
sch
edul
ed f
or r
edem
ptio
n on
that
date
(an
d th
e co
nditi
ons
of r
edem
ptio
n ha
ve b
een
satis
fied)
or,
as a
pplic
able
, af
ter
the
final
esta
blis
hmen
t of
the
esc
row
acc
ount
and
del
iver
y of
the
Bon
d Pr
ocee
ds a
nd/o
r A
cqui
red
Obl
igat
ions
to th
e Es
crow
Age
nt.
B-21
-4
1-
Th
e Es
crow
Age
nt o
r th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
as
appl
icab
le, i
s
here
by a
utho
rized
and
dire
cted
to
prov
ide
for
the
givi
ng o
f no
tice
of t
he r
edem
ptio
n of
the
Ref
unde
d B
onds
in
acco
rdan
ce w
ith t
he a
pplic
able
pro
visi
ons
of t
he 2
002
Bon
d R
esol
utio
n
purs
uant
to w
hich
the
Ref
unde
d B
onds
was
issu
ed.
The
Trea
sure
r of t
he U
nive
rsity
is a
utho
rized
and
requ
este
d to
pro
vide
wha
teve
r ass
ista
nce
is n
eces
sary
to a
ccom
plis
h su
ch re
dem
ptio
n an
d th
e
givi
ng o
f not
ice
ther
efor
.
Th
e Es
crow
Age
nt o
r th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
, as
appl
icab
le, i
s
here
by a
utho
rized
and
dire
cted
to p
ay to
the
Trea
sure
r of
the
Uni
vers
ity, o
r, at
the
dire
ctio
n of
the
Trea
sure
r of t
he U
nive
rsity
, to
the
fisca
l age
ncy
or a
genc
ies o
f the
Sta
te o
f Was
hing
ton,
sum
s
suff
icie
nt to
pay
, whe
n du
e, th
e pa
ymen
ts s
peci
fied
in o
f Se
ctio
n 9(
a) o
f th
is R
esol
utio
n.
All
such
sum
s sh
all b
e pa
id fr
om th
e m
oney
s an
d A
cqui
red
Obl
igat
ions
dep
osite
d w
ith s
aid
Escr
ow
Age
nt p
ursu
ant
to t
he p
revi
ous
subs
ectio
n of
thi
s R
esol
utio
n, a
nd t
he i
ncom
e th
eref
rom
and
proc
eeds
the
reof
. A
ll m
oney
s an
d A
cqui
red
Obl
igat
ions
dep
osite
d w
ith s
aid
bank
and
any
inco
me
ther
efro
m s
hall
be h
eld,
inve
sted
(but
onl
y at
the
dire
ctio
n of
the
Trea
sure
r) a
nd a
pplie
d
in a
ccor
danc
e w
ith t
he p
rovi
sion
s of
thi
s R
esol
utio
n an
d w
ith t
he l
aws
of t
he S
tate
of
Was
hing
ton
for t
he b
enef
it of
the
Uni
vers
ity a
nd o
wne
rs o
f the
Ref
unde
d B
onds
.
If
the
Ref
undi
ng B
ond
proc
eeds
are
dep
osite
d w
ith a
n Es
crow
Age
nt, t
he U
nive
rsity
will
take
suc
h ac
tions
as
are
foun
d ne
cess
ary
to s
ee th
at a
ll ne
cess
ary
and
prop
er fe
es, c
ompe
nsat
ion
and
expe
nses
of t
he E
scro
w A
gent
for t
he R
efun
ded
Bon
ds sh
all b
e pa
id w
hen
due.
In
ord
er to
car
ry o
ut th
e pu
rpos
es o
f the
pre
cedi
ng s
ubse
ctio
n of
this
Res
olut
ion
and
this
subs
ectio
n, th
e Tr
easu
rer o
f th
e U
nive
rsity
is a
utho
rized
and
dire
cted
to e
xecu
te a
nd d
eliv
er a
n
Escr
ow A
gree
men
t to
the
Esc
row
Age
nt i
f th
e A
utho
rized
Rep
rese
ntat
ive
of t
he U
nive
rsity
dete
rmin
es th
at a
n Es
crow
Age
nt w
ill b
e re
quire
d, w
hen
the
prov
isio
ns th
ereo
f hav
e be
en fi
xed
-4
2-
and
dete
rmin
ed.
A fo
rm o
f suc
h ag
reem
ent i
s at
tach
ed h
eret
o as
“Ex
hibi
t A,”
and
the
final
form
of th
e Es
crow
Agr
eem
ent m
ay b
e m
odifi
ed to
mee
t the
act
ual t
erm
s of t
he R
efun
ding
.
Se
ctio
n 10
. In
vest
men
t of
Fund
s. T
he U
nive
rsity
cov
enan
ts to
dire
ct th
e in
vest
men
t
and
rein
vest
men
t of m
oney
dep
osite
d in
the
Rev
enue
Acc
ount
and
the
Bon
d Fu
nd o
nly
in th
ose
inve
stm
ents
in w
hich
age
ncie
s of t
he S
tate
are
aut
horiz
ed to
inve
st p
ursu
ant t
o St
ate
law
.
Se
ctio
n 11
. A
dditi
onal
Bon
ds.
(a
) Th
e U
nive
rsity
sha
ll ha
ve t
he r
ight
to
issu
e on
e or
mor
e se
ries
of A
dditi
onal
Bon
ds t
o fin
ance
the
rep
air,
reno
vatio
n, a
ltera
tion
or b
ette
rmen
t of
the
Rec
reat
ion
Cen
ter
or
rela
ted
or a
dditi
onal
recr
eatio
nal f
acili
ties,
or to
refu
nd o
r adv
ance
refu
nd a
ny P
arity
Bon
ds, i
f:
(1)
The
Uni
vers
ity is
not
in d
efau
lt of
any
of i
ts c
oven
ants
and
und
erta
king
s in
conn
ectio
n w
ith a
ll O
utst
andi
ng B
onds
; and
(2)
The
Uni
vers
ity
has
rece
ived
a
certi
ficat
e of
th
e Tr
easu
rer
of
the
Uni
vers
ity, a
ppro
ved
by th
e B
oard
, bas
ed u
pon
the
appr
opria
te a
udite
d an
nual
fin
anci
al re
ports
of th
e U
nive
rsity
, to
the
effe
ct th
at a
nnua
l Rec
reat
ion
Cen
ter R
even
ues
(taki
ng in
to a
ccou
nt a
ny
Boa
rd a
ppro
ved
incr
ease
s in
the
SRC
Fee
and
/or k
now
n in
crea
ses i
n st
uden
t enr
ollm
ent)
plus
the
aver
age
dolla
r am
ount
of t
he S
RC
Fee
col
lect
ed d
urin
g th
e av
erag
e of
the
two
mos
t rec
ent F
isca
l
Yea
rs f
or w
hich
aud
ited
finan
cial
sta
tem
ent
are
avai
labl
e im
med
iate
ly p
rece
ding
the
dat
e of
issu
ance
of
such
Add
ition
al B
onds
, will
be
at le
ast e
qual
to (
i) th
e A
nnua
l D
ebt
Serv
ice
with
resp
ect t
o al
l Par
ity B
onds
to b
e O
utst
andi
ng f
ollo
win
g th
e da
te o
f is
suan
ce o
f suc
h A
dditi
onal
Bon
ds, p
lus
(ii) a
nnua
l cos
ts o
f mai
nten
ance
, ope
ratio
n an
d pr
ogra
ms
of th
e R
ecre
atio
n C
ente
r,
incl
udin
g in
sura
nce
prem
ium
s, co
sts
of re
pair
and
repl
acem
ent a
nd o
ther
cos
ts p
rope
rly a
lloca
ble
to th
e R
ecre
atio
n C
ente
r.
B-22
-4
3-
(b
) N
othi
ng h
erei
n sh
all p
reve
nt th
e U
nive
rsity
from
gra
ntin
g a
lien
or li
ens w
hich
are
juni
or a
nd s
ubor
dina
te t
o th
e lie
n of
any
Out
stan
ding
Bon
ds a
gain
st t
he R
ecre
atio
n C
ente
r
Rev
enue
or t
he S
RC
Fee
and
the
mon
ey a
nd in
vest
men
ts in
the
Rev
enue
Acc
ount
.
Se
ctio
n 12
. A
dditi
onal
Cov
enan
ts o
f th
e U
nive
rsity
. So
lon
g as
any
Bon
ds a
re
Out
stan
ding
, the
Uni
vers
ity m
akes
the
follo
win
g co
vena
nts.
(a
) C
over
age
Cov
enan
t. T
he U
nive
rsity
sha
ll se
t rat
es a
nd c
harg
es fo
r the
use
of t
he
Rec
reat
ion
Cen
ter a
nd/o
r sha
ll m
aint
ain
or in
crea
se th
e SR
C F
ee to
pro
vide
am
ount
s suf
ficie
nt to
pay
oper
atin
g, m
aint
enan
ce a
nd p
rogr
am e
xpen
ses o
f the
Rec
reat
ion
Cen
ter,
to p
rovi
de fo
r rep
air
and
repl
acem
ent o
f co
mpo
nent
s th
ereo
f, to
pay
insu
ranc
e pr
emiu
ms
with
resp
ect t
here
to a
nd to
pay
othe
r cos
ts p
rope
rly a
lloca
ble
to th
e R
ecre
atio
n C
ente
r and
to re
cove
r am
ount
s su
ffic
ient
to
pay
debt
serv
ice
(taki
ng in
to a
ccou
nt a
ntic
ipat
ed re
ceip
ts o
f the
SR
C F
ee a
s wel
l as o
ther
rece
ipts
and
allo
catio
ns m
ade
avai
labl
e by
the
Uni
vers
ity) w
ith r
espe
ct to
all
Out
stan
ding
Par
ity B
onds
.
The
SRC
Fee
may
be
decr
ease
d fr
om t
he d
olla
r am
ount
ini
tially
app
rove
d as
lon
g as
the
cove
rage
cov
enan
t in
this
subs
ectio
n is
met
.
(b
) P
aym
ent
of D
ebt
Serv
ice.
Th
e U
nive
rsity
sha
ll pa
y or
cau
se t
o be
pai
d th
e
prin
cipa
l of
and
the
int
eres
t on
all
Out
stan
ding
Bon
ds o
n th
e da
tes,
at t
he p
lace
s, fr
om t
he
sour
ces o
f fun
ds a
nd in
the
man
ner,
all a
s pro
vide
d he
rein
;
(c
) M
aint
enan
ce o
f th
e R
ecre
atio
n C
ente
r. T
he U
nive
rsity
will
at a
ll tim
es k
eep
and
mai
ntai
n or
cau
se t
o be
mai
ntai
ned
the
Rec
reat
ion
Cen
ter
in g
ood
repa
ir, w
orki
ng o
rder
and
cond
ition
, and
will
at a
ll tim
es o
pera
te th
e sa
me
and
the
busi
ness
or
busi
ness
es in
con
nect
ion
ther
ewith
in
an e
ffic
ient
man
ner
and
at a
rea
sona
ble
cost
and
mai
ntai
n th
e R
enew
al a
nd
Rep
lace
men
t Res
erve
Req
uire
men
t.
-4
4-
(d
) M
aint
enan
ce o
f R
ecor
ds.
The
Uni
vers
ity s
hall
keep
acc
urat
e fin
anci
al r
ecor
ds
and
prop
er b
ooks
rel
atin
g to
the
rec
eipt
and
exp
endi
ture
of
Rec
reat
ion
Cen
ter
Rev
enue
and
,
with
in o
ne h
undr
ed e
ight
y (1
80) d
ays
follo
win
g th
e en
d of
eac
h Fi
scal
Yea
r, to
fur
nish
upo
n
requ
est t
o an
y R
egis
tere
d O
wne
r re
ques
ting
in w
ritin
g a
copy
of
the
sam
e, c
opie
s of
fin
anci
al
repo
rts re
flect
ing
in re
ason
able
det
ail t
he re
ceip
t and
use
of R
ecre
atio
n C
ente
r Rev
enue
, and
the
Uni
vers
ity’s
com
plia
nce
with
the
mat
eria
l pro
visi
ons o
f thi
s Res
olut
ion;
(e
) In
sura
nce.
Th
e U
nive
rsity
sha
ll pr
ocur
e an
d m
aint
ain
such
pub
lic l
iabi
lity
insu
ranc
e as
is p
rude
nt a
nd a
s is
cus
tom
arily
car
ried
by s
imila
r ins
titut
ions
eng
aged
in a
ctiv
ities
of c
ompa
rabl
e si
ze.
The
Uni
vers
ity w
ill a
lso
proc
ure
and
mai
ntai
n su
ch p
rope
rty a
nd b
usin
ess
inte
rrup
tion
insu
ranc
e co
vera
ges
as a
re p
rude
nt a
nd c
usto
mar
ily c
arrie
d by
sim
ilar
inst
itutio
ns
enga
ged
in a
ctiv
ities
of c
ompa
rabl
e si
ze.
Se
ctio
n 13
. Ta
x C
oven
ants
.
(a)
Arb
itrag
e C
oven
ant.
W
ithou
t lim
iting
the
gen
eral
ity o
f th
e fo
rego
ing,
the
Uni
vers
ity c
oven
ants
that
it w
ill n
ot ta
ke a
ny a
ctio
n or
fail
to ta
ke a
ny a
ctio
n w
ith re
spec
t to
the
proc
eeds
of s
ale
of th
e B
onds
or a
ny o
ther
fund
s of
the
Uni
vers
ity w
hich
may
be
deem
ed to
be
proc
eeds
of
the
Bon
ds p
ursu
ant
to S
ectio
n 14
8 of
the
Cod
e an
d th
e re
gula
tions
pro
mul
gate
d
ther
eund
er w
hich
, if s
uch
use
had
been
reas
onab
ly e
xpec
ted
on th
e da
te o
f del
iver
y of
the
Bon
ds
to th
e in
itial
pur
chas
ers
ther
eof,
wou
ld h
ave
caus
ed th
e B
onds
as
“Arb
itrag
e B
onds
” w
ithin
the
mea
ning
of s
uch
term
as u
sed
in S
ectio
n 14
8 of
the
Cod
e.
Th
e U
nive
rsity
will
com
ply
with
the
req
uire
men
ts o
f Se
ctio
n 14
8 of
the
Cod
e an
d th
e
appl
icab
le re
gula
tions
ther
eund
er th
roug
hout
the
term
of t
he B
onds
.
(b
) P
riva
te P
erso
n U
se L
imit
atio
n fo
r B
onds
. Th
e U
nive
rsity
cov
enan
ts th
at f
or a
s
long
as t
he B
onds
are
Out
stan
ding
, it w
ill n
ot p
erm
it:
B-23
-4
5-
(1)
Mor
e th
an te
n (1
0) p
erce
nt o
f the
Net
Pro
ceed
s of t
he B
onds
to b
e us
ed fo
r
any
Priv
ate
Pers
on U
se; a
nd
(2)
Mor
e th
an t
en (
10)
perc
ent
of t
he p
rinci
pal
or i
nter
est
paym
ents
on
the
Bon
ds in
a B
ond
Yea
r to
be d
irect
ly o
r ind
irect
ly:
(A) s
ecur
ed b
y an
y in
tere
st in
pro
perty
use
d
or to
be
used
for a
ny P
rivat
e Pe
rson
Use
or s
ecur
ed b
y pa
ymen
ts in
resp
ect o
f pro
perty
use
d or
to
be u
sed
for
any
Priv
ate
Pers
on U
se, o
r (B
) de
rived
from
pay
men
ts (
whe
ther
or n
ot m
ade
to th
e
Uni
vers
ity) i
n re
spec
t of p
rope
rty, o
r bor
row
ed m
oney
, use
d or
to b
e us
ed fo
r any
Priv
ate
Pers
on
Use
.
Th
e U
nive
rsity
furth
er c
oven
ants
that
, if:
(3)
Mor
e th
an fi
ve (5
) per
cent
of t
he N
et P
roce
eds o
f the
Bon
ds a
re to
be
used
for a
ny P
rivat
e Pe
rson
Use
; and
(4)
Mor
e th
an f
ive
(5)
perc
ent
of t
he p
rinci
pal
or i
nter
est
paym
ents
on
the
Bon
ds in
a B
ond
Yea
r ar
e (u
nder
the
term
s of
thi
s re
solu
tion
or a
ny u
nder
lyin
g ar
rang
emen
t)
dire
ctly
or i
ndire
ctly
: (A
) sec
ured
by
any
inte
rest
in p
rope
rty u
sed
or to
be
used
for a
ny P
rivat
e
Pers
on U
se o
r se
cure
d by
pay
men
ts i
n re
spec
t of
prop
erty
use
d or
to
be u
sed
for
any
Priv
ate
Pers
on U
se, o
r (B
) der
ived
from
pay
men
ts (w
heth
er o
r not
mad
e to
the
Uni
vers
ity) i
n re
spec
t of
prop
erty
, or b
orro
wed
mon
ey, u
sed
or to
be
used
for a
ny P
rivat
e Pe
rson
Use
, the
n, (i
) any
Priv
ate
Pers
on U
se o
f the
Rec
reat
ion
Cen
ter o
r Priv
ate
Pers
on U
se p
aym
ents
des
crib
ed in
sub
sect
ion
(4)
here
of th
at is
in e
xces
s of t
he fi
ve p
erce
nt li
mita
tions
des
crib
ed in
such
subs
ectio
ns (3
) or (
4) w
ill
be fo
r a P
rivat
e Pe
rson
Use
that
is re
late
d to
the
stat
e or
loca
l gov
ernm
enta
l use
of t
he R
ecre
atio
n
Cen
ter,
and
(ii) a
ny P
rivat
e Pe
rson
Use
will
not
exc
eed
the
amou
nt o
f Net
Pro
ceed
s of
the
Bon
ds
used
for t
he st
ate
or lo
cal g
over
nmen
tal u
se p
ortio
n of
the
Rec
reat
ion
Cen
ter t
o w
hich
the
Priv
ate
Pers
on U
se o
f su
ch p
ortio
n of
the
Rec
reat
ion
Cen
ter
rela
tes.
The
Uni
vers
ity f
urth
er c
oven
ants
-4
6-
that
it w
ill c
ompl
y w
ith a
ny li
mita
tions
on
the
use
of th
e pr
ojec
ts b
y ot
her
than
sta
te a
nd lo
cal
gove
rnm
enta
l us
ers
that
are
nec
essa
ry, i
n th
e op
inio
n of
its
bon
d co
unse
l, to
pre
serv
e th
e ta
x
exem
ptio
n of
the
int
eres
t on
the
Bon
ds.
The
cove
nant
s of
thi
s se
ctio
n ar
e sp
ecifi
ed s
olel
y to
assu
re th
e co
ntin
ued
exem
ptio
n fro
m re
gula
r inc
ome
taxa
tion
of th
e in
tere
st o
n th
e B
onds
.
(c)
Des
igna
tion
. T
he B
onds
sha
ll no
t be
“qu
alifi
ed t
ax-e
xem
pt o
blig
atio
ns”
for
purc
hase
by
finan
cial
inst
itutio
ns p
ursu
ant t
o Se
ctio
n 26
5(b)
(3) o
f the
Cod
e.
Se
ctio
n 14
. N
o R
ecou
rse
Aga
inst
Ind
ivid
uals
. N
o R
egis
tere
d O
wne
r sh
all h
ave
any
reco
urse
for t
he p
aym
ent o
f any
par
t of t
he p
rinci
pal o
r red
empt
ion
pric
e, if
any
, of o
r int
eres
t on
the
Bon
ds,
or f
or t
he s
atis
fact
ion
of a
ny l
iabi
lity
aris
ing
from
, fo
unde
d up
on,
or e
xist
ing
by
reas
on o
f, th
e is
suan
ce o
r ow
ners
hip
of s
uch
Bon
ds a
gain
st t
he o
ffic
ers
of t
he U
nive
rsity
or
offic
ers o
r mem
bers
of t
he B
oard
in th
eir i
ndiv
idua
l cap
aciti
es.
Se
ctio
n 15
. D
efea
sanc
e.
In t
he e
vent
tha
t m
oney
and
/or
Gov
ernm
ent
Obl
igat
ions
mat
urin
g or
hav
ing
guar
ante
ed re
dem
ptio
n pr
ices
at t
he o
ptio
n of
the
owne
r at s
uch
time
or ti
mes
and
bear
ing
inte
rest
to
be e
arne
d th
ereo
n in
am
ount
s (to
geth
er w
ith s
uch
mon
ey,
if an
y)
suff
icie
nt t
o re
deem
and
ret
ire p
art
or a
ll of
the
Bon
ds i
n ac
cord
ance
with
the
ir te
rms,
are
here
afte
r irr
evoc
ably
set
asi
de in
a s
peci
al a
ccou
nt a
nd p
ledg
ed to
eff
ect s
uch
rede
mpt
ion
and
retir
emen
t, th
en n
o fu
rther
pay
men
ts n
eed
be m
ade
into
the
Bon
d Fu
nd o
r any
acc
ount
ther
ein
for
the
paym
ent o
f the
prin
cipa
l of a
nd in
tere
st o
n th
e ce
rtain
Bon
ds so
pro
vide
d fo
r, an
d su
ch B
onds
shal
l the
n ce
ase
to b
e en
title
d to
any
lien
, ben
efit
or s
ecur
ity o
f thi
s re
solu
tion,
exc
ept t
he ri
ght t
o
rece
ive
the
fund
s so
set
asi
de a
nd p
ledg
ed a
nd n
otic
es o
f ea
rly r
edem
ptio
n, i
f an
y, a
nd s
uch
Bon
ds s
hall
no l
onge
r be
dee
med
to
be O
utst
andi
ng h
ereu
nder
, or
und
er a
ny R
esol
utio
n
auth
oriz
ing
the
issu
ance
of b
onds
or o
ther
inde
bted
ness
of t
he U
nive
rsity
.
B-24
-4
7-
Th
e U
nive
rsity
sha
ll pr
ovid
e no
tice
of d
efea
sanc
e of
Bon
ds t
o R
egis
tere
d O
wne
rs o
f
Bon
ds d
efea
sed
and
to e
ach
party
ent
itled
to
rece
ive
notic
e un
der
agre
emen
ts f
or c
ontin
uing
disc
losu
re.
Se
ctio
n 16
. Sa
le o
f Bon
ds.
The
Boa
rd h
as d
eter
min
ed th
at it
is in
the
best
inte
rest
of
the
Uni
vers
ity t
o de
lega
te t
o th
e A
utho
rized
Rep
rese
ntat
ive
of t
he U
nive
rsity
the
aut
horit
y to
dete
rmin
e w
heth
er th
e Im
prov
emen
t Bon
ds w
ill b
e is
sued
, to
dete
rmin
e w
heth
er th
e B
onds
will
be C
over
ed B
onds
, or w
heth
er th
e B
onds
will
be
issu
ed a
s U
ncov
ered
Bon
ds (i
nclu
ding
whe
ther
Unc
over
ed B
onds
will
be
secu
red
by a
sepa
rate
rese
rve)
and
the
auth
ority
to a
ppro
ve th
e m
anne
r
of s
ale,
the
final
inte
rest
rate
s, m
atur
ity d
ates
, agg
rega
te p
rinci
pal a
mou
nt, p
rinci
pal a
mou
nts
of
each
mat
urity
, red
empt
ion
right
s an
d ot
her t
erm
s an
d co
nditi
ons
of th
e B
onds
. Th
e A
utho
rized
Rep
rese
ntat
ive
of t
he U
nive
rsity
is
here
by a
utho
rized
to
dete
rmin
e w
heth
er t
he I
mpr
ovem
ent
Bon
ds w
ill b
e is
sued
, to
det
erm
ine
whe
ther
the
Bon
ds w
ill b
e is
sued
as
Cov
ered
Bon
ds,
or
whe
ther
the
Bon
ds w
ill b
e is
sued
as U
ncov
ered
Bon
ds (i
nclu
ding
whe
ther
Unc
over
ed B
onds
will
be s
ecur
ed b
y a
sepa
rate
res
erve
) an
d to
app
rove
the
man
ner
of s
ale,
the
fin
al i
nter
est
rate
s,
mat
urity
dat
es, a
ggre
gate
prin
cipa
l am
ount
, prin
cipa
l m
atur
ities
and
red
empt
ion
right
s fo
r th
e
Bon
ds i
n th
e m
anne
r pr
ovid
ed h
erea
fter
so l
ong
as (
i) th
e ag
greg
ate
prin
cipa
l am
ount
of
the
Bon
ds d
oes
not
exce
ed $
27,0
00,0
00,
(ii)
the
max
imum
mat
urity
dat
e of
the
Bon
ds d
oes
not
exte
nd b
eyon
d th
e ye
ar 2
040,
(iii
) th
e tru
e in
tere
st c
ost
for
the
Bon
ds d
oes
not
exce
ed 4
.40
perc
ent;
(iv) w
ith r
espe
ct to
the
Ref
undi
ng B
onds
, the
net
pre
sent
val
ue a
ggre
gate
sav
ings
with
resp
ect t
o al
l Ref
unde
d B
onds
to b
e re
aliz
ed a
s a
resu
lt of
the
refu
ndin
g of
the
Ref
unde
d B
onds
(afte
r pay
men
t of a
ll co
sts o
f iss
uanc
e) is
at l
east
equ
al to
the
Savi
ngs T
arge
t and
(v) w
ith re
spec
t
to th
e Im
prov
emen
t Bon
ds, i
mpr
ovem
ents
are
revi
ewed
and
app
rove
d by
reco
mm
enda
tion
of th
e
Stud
ent R
ecre
atio
n C
ente
r’s S
&A
Fee
Com
mitt
ee.
-4
8-
In
det
erm
inin
g w
heth
er th
e Im
prov
emen
t Bon
ds w
ill b
e is
sued
, and
whe
ther
the
Bon
ds
will
be
issu
ed a
s C
over
ed B
onds
(the
Com
mon
Res
erve
Req
uire
men
t if l
ower
than
the
Com
mon
Res
erve
Req
uire
men
t sp
ecifi
ed i
n th
is R
esol
utio
n),
or w
heth
er t
he B
onds
will
be
issu
ed a
s
Unc
over
ed B
onds
(in
clud
ing
whe
ther
Unc
over
ed B
onds
will
be
secu
red
by a
sep
arat
e re
serv
e),
the
final
int
eres
t ra
tes,
mat
urity
dat
es,
aggr
egat
e pr
inci
pal
amou
nt,
prin
cipa
l m
atur
ities
and
rede
mpt
ion
right
s of
the
Bon
ds, t
he A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
, in
cons
ulta
tion
with
Uni
vers
ity s
taff
and
the
Uni
vers
ity’s
fina
ncia
l adv
isor
, sha
ll ta
ke in
to a
ccou
nt th
ose
fact
ors
that
, in
his
or h
er j
udgm
ent,
will
res
ult
in t
he l
owes
t tru
e in
tere
st c
ost
on t
he B
onds
to
thei
r
mat
urity
, inc
ludi
ng, b
ut n
ot l
imite
d to
cur
rent
fin
anci
al m
arke
t co
nditi
ons
and
curre
nt i
nter
est
rate
s for
obl
igat
ions
com
para
ble
in te
nor a
nd q
ualit
y to
the
Bon
ds.
In
itial
ly,
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity i
s he
reby
aut
horiz
ed t
o
dete
rmin
e w
heth
er th
e B
onds
sha
ll be
sol
d by
Neg
otia
ted
Sale
or
by a
Com
petit
ive
Sale
. If
a
serie
s of
the
Bon
ds is
sol
d by
Neg
otia
ted
Sale
, the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity
shal
l se
lect
one
or
mor
e un
derw
ritin
g fir
ms
to u
nder
writ
e th
e ap
plic
able
ser
ies
of t
he B
onds
thro
ugh
a pr
oces
s of
sol
iciti
ng p
ropo
sals
for
und
erw
ritin
g.
Upo
n th
e se
lect
ion
of o
ne o
r m
ore
unde
rwrit
ers,
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity s
hall
nego
tiate
the
term
s of
sal
e
for t
he B
onds
, inc
ludi
ng th
e te
rms
desc
ribed
in th
is s
ectio
n, in
a c
ontra
ct o
f sal
e (e
ach,
a “
Bon
d
Purc
hase
Con
tract
”).
If th
e B
onds
are
sol
d by
Com
petit
ive
Sale
, sea
led
bids
will
be
rece
ived
by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity o
r th
e C
ompe
titiv
e Sa
le w
ill b
e un
derta
ken
by
elec
troni
c m
eans
, in
the
man
ner a
nd o
n su
ch d
ate
and
time
as th
e A
utho
rized
Rep
rese
ntat
ive
of
the
Uni
vers
ity h
erea
fter
shal
l det
erm
ine.
The
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity w
ill
appr
ove
the
bid
offe
ring
to p
urch
ase
the
Bon
ds a
t the
low
est t
rue
inte
rest
cos
t to
the
Uni
vers
ity a
t
such
pric
e as
sha
ll be
det
erm
ined
at
the
time
of s
ale
by t
he A
utho
rized
Rep
rese
ntat
ive
of t
he
B-25
-4
9-
Uni
vers
ity, p
lus a
ccru
ed in
tere
st to
the
date
of d
eliv
ery,
on
all t
he te
rms
and
cond
ition
s set
out
in
the
appl
icab
le O
ffic
ial N
otic
e of
Sal
e.
A
ll bi
ds s
ubm
itted
for
the
pur
chas
e th
e B
onds
sha
ll be
as
set
forth
in
the
appl
icab
le
Off
icia
l N
otic
e of
Sal
e or
oth
erw
ise
as e
stab
lishe
d by
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity w
hich
will
be
furn
ishe
d up
on r
eque
st m
ade
to th
e A
utho
rized
Rep
rese
ntat
ive
of th
e
Uni
vers
ity.
Su
bjec
t to
the
ter
ms
and
cond
ition
s se
t fo
rth i
n th
is S
ectio
n 16
, th
e A
utho
rized
Rep
rese
ntat
ive
of t
he U
nive
rsity
is
here
by a
utho
rized
to
acce
pt a
n A
ppro
ved
Bid
in
a
Com
petit
ive
Sale
and
/or
exec
ute
the
final
for
m o
f a
Bon
d Pu
rcha
se C
ontra
ct i
n a
Neg
otia
ted
Sale
, up
on h
is o
r he
r ap
prov
al o
f th
e fin
al i
nter
est
rate
s, m
atur
ity d
ates
, ag
greg
ate
prin
cipa
l
amou
nt, p
rinci
pal m
atur
ities
and
red
empt
ion
right
s se
t for
th th
erei
n.
Follo
win
g th
e sa
le o
f th
e
Bon
ds,
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity s
hall
prov
ide
a re
port
to t
he B
oard
,
desc
ribin
g th
e fin
al t
erm
s of
the
Bon
ds a
ppro
ved
purs
uant
to
the
auth
ority
del
egat
ed i
n th
is
sect
ion.
U
pon
the
adop
tion
of th
is R
esol
utio
n, th
e pr
oper
off
icia
ls o
f the
Uni
vers
ity, i
nclu
ding
the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity, a
re a
utho
rized
and
dire
cted
to u
nder
take
all
othe
r
actio
ns n
eces
sary
for t
he p
rom
pt s
ale,
exe
cutio
n an
d de
liver
y of
the
Bon
ds a
nd fu
rther
to e
xecu
te
all c
losi
ng c
ertif
icat
es a
nd d
ocum
ents
requ
ired
to e
ffec
t the
clo
sing
and
del
iver
y of
the
Bon
ds in
acco
rdan
ce w
ith th
e te
rms
of th
e O
ffici
al N
otic
e of
Sal
e, A
ppro
ved
Bid
and
/or
Bon
d Pu
rcha
se
Con
tract
.
Th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
is a
utho
rized
to ra
tify
and
to a
ppro
ve fo
r
purp
oses
of
the
Rul
e, o
n be
half
of th
e U
nive
rsity
, an
Off
icia
l Sta
tem
ent f
or e
ach
Bon
d Se
ries
(and
any
Pre
limin
ary
Off
icia
l Sta
tem
ent)
and
any
supp
lem
ent t
here
to re
latin
g to
the
issua
nce
and
-5
0-
sale
of
each
ser
ies
of t
he B
onds
and
the
dis
tribu
tion
of t
he B
onds
pur
suan
t th
eret
o w
ith s
uch
chan
ges,
if an
y, a
s may
be
deem
ed b
y hi
m/h
er to
be
appr
opria
te.
Th
e au
thor
ity g
rant
ed b
y th
is se
ctio
n sh
all r
emai
n in
eff
ect u
ntil
Dec
embe
r 31,
201
2.
Sect
ion
17.
Bon
d In
sura
nce.
Th
e pa
ymen
ts o
f th
e pr
inci
pal
of a
nd i
nter
est
on t
he
Bon
ds, o
r pr
inci
pal
mat
uriti
es t
here
of m
ay b
e in
sure
d by
the
iss
uanc
e of
the
Bon
d In
sura
nce
Polic
y. T
he A
utho
rized
Rep
rese
ntat
ive,
with
the
assi
stan
ce o
f the
Uni
vers
ity’s
fina
ncia
l adv
isor
,
is h
ereb
y fu
rther
aut
horiz
ed a
nd d
irect
ed t
o so
licit
prop
osal
s fro
m m
unic
ipal
bon
d in
sura
nce
com
pani
es f
or t
he i
ssua
nce
of a
Bon
d In
sura
nce
Polic
y.
In t
he e
vent
tha
t th
e A
utho
rized
Rep
rese
ntat
ive
of th
e U
nive
rsity
rec
eive
s m
ultip
le p
ropo
sals
, the
Aut
horiz
ed R
epre
sent
ativ
e of
the
Uni
vers
ity m
ay s
elec
t the
pro
posa
l hav
ing
the
low
est c
ost a
nd r
esul
ting
in a
n ov
eral
l low
er
inte
rest
cos
t with
resp
ect t
o th
e ap
plic
able
serie
s of t
he B
onds
. Th
e A
utho
rized
Rep
rese
ntat
ive
of
the
Uni
vers
ity m
ay e
xecu
te a
com
mitm
ent r
ecei
ved
from
eac
h In
sure
r sel
ecte
d by
the
Aut
horiz
ed
Rep
rese
ntat
ive
of th
e U
nive
rsity
. Th
e B
oard
fur
ther
aut
horiz
es a
nd d
irect
s al
l pro
per
offic
ers,
agen
ts, a
ttorn
eys
and
empl
oyee
s of
the
Uni
vers
ity to
coo
pera
te w
ith e
ach
Insu
rer
in p
repa
ring
such
add
ition
al a
gree
men
ts, c
ertif
icat
es, a
nd o
ther
doc
umen
tatio
n on
beh
alf o
f the
Uni
vers
ity a
s
shal
l be
nece
ssar
y or
adv
isab
le in
pro
vidi
ng f
or th
e ap
plic
able
Bon
d In
sura
nce
Polic
y.
To th
e
exte
nt th
at th
e B
onds
are
insu
red
by a
Bon
d In
sura
nce
Polic
y, th
e In
sure
r of e
ach
mat
urity
of t
he
Bon
ds s
o in
sure
d sh
all
be d
eem
ed t
o th
e R
egis
tere
d O
wne
r of
suc
h B
onds
for
all
purp
oses
,
incl
udin
g co
nsen
t, un
der t
his R
esol
utio
n.
Se
ctio
n 18
. D
eter
min
atio
n of
R
egis
tere
d O
wne
rs’
Con
curre
nce.
In
dete
rmin
ing
whe
ther
the
Reg
iste
red
Ow
ners
of
the
requ
isite
agg
rega
te p
rinci
pal
amou
nt o
f O
utst
andi
ng
Bon
ds h
ave
conc
urre
d in
any
dem
and,
req
uest
, di
rect
ion,
con
sent
or
wai
ver
unde
r th
is
Res
olut
ion,
Bon
ds w
hich
are
ow
ned
by o
r hel
d in
the
nam
e of
the
Uni
vers
ity sh
all b
e di
sreg
arde
d
B-26
-5
1-
and
deem
ed n
ot to
be
Out
stan
ding
for t
he p
urpo
se o
f any
suc
h de
term
inat
ion.
Bon
ds s
o ow
ned
whi
ch h
ave
been
ple
dged
in g
ood
faith
may
be
rega
rded
as
Out
stan
ding
for t
he p
urpo
ses
of th
is
Sect
ion
18 if
the
pled
gee
shal
l est
ablis
h to
the
satis
fact
ion
of th
e U
nive
rsity
the
pled
gee’
s rig
ht to
vote
such
Bon
ds a
nd th
at th
e pl
edge
e is
not
the
Uni
vers
ity.
Sect
ion
19.
Und
erta
king
to
Pr
ovid
e O
ngoi
ng
Dis
clos
ure.
The
Aut
horiz
ed
Rep
rese
ntat
ive
of th
e U
nive
rsity
is a
utho
rized
to, i
n hi
s or
her
dis
cret
ion,
exe
cute
and
del
iver
a
certi
ficat
e re
gard
ing
cont
inui
ng d
iscl
osur
e in
ord
er to
ass
ist t
he U
nder
writ
er in
com
plyi
ng w
ith
Sect
ion
(b)(
5) o
f the
Rul
e.
Se
ctio
n 20
. C
ontra
ct-S
avin
gs C
laus
e. T
he c
oven
ants
con
tain
ed in
this
Res
olut
ion,
the
Bon
ds a
nd th
e pr
ovis
ions
of t
he B
ond
Act
sha
ll co
nstit
ute
a co
ntra
ct b
etw
een
the
Uni
vers
ity a
nd
the
Reg
iste
red
Ow
ners
of t
he B
onds
and
sha
ll be
con
stru
ed in
acc
orda
nce
with
and
con
trolle
d by
the
law
s of t
he S
tate
of W
ashi
ngto
n. I
f any
one
or m
ore
of th
e co
vena
nts o
r agr
eem
ents
pro
vide
d
in th
is R
esol
utio
n to
be
perf
orm
ed o
n th
e pa
rt of
the
Uni
vers
ity s
hall
be d
ecla
red
by a
ny c
ourt
of
com
pete
nt ju
risdi
ctio
n an
d fin
al a
ppea
l, if
any
appe
al b
e ta
ken,
to b
e co
ntra
ry to
law
, the
n su
ch
cove
nant
or
cove
nant
s, ag
reem
ent
or a
gree
men
ts s
hall
be n
ull
and
void
and
sha
ll be
dee
med
sepa
rabl
e fr
om th
e re
mai
ning
cov
enan
ts a
nd a
gree
men
ts in
this
res
olut
ion
and
shal
l in
no w
ay
affe
ct th
e va
lidity
of t
he o
ther
pro
visi
ons o
f thi
s Res
olut
ion
or o
f the
Bon
ds.
-5
2-
Se
ctio
n 21
. Im
med
iate
Eff
ect.
Thi
s R
esol
utio
n sh
all t
ake
effe
ct im
med
iate
ly u
pon
its
adop
tion.
A
DO
PTED
AN
D A
PPR
OV
ED b
y th
e B
oard
of
Trus
tees
of
Wes
tern
Was
hing
ton
Uni
vers
ity, a
t a re
gula
r mee
ting
held
this
10th
day
of F
ebru
ary,
201
2.
WES
TER
N W
ASH
ING
TON
UN
IVER
SITY
Cha
ir, B
oard
of T
rust
ees
A
TTES
T:
Secr
etar
y of
the
Boa
rd
B-27
A
-1
EX
HIB
IT A
ES
CR
OW
DE
PO
SIT
AG
RE
EM
EN
T
WES
TER
N W
ASH
ING
TON
UN
IVER
SITY
ST
UD
ENT
REC
REA
TIO
N F
EE R
EVEN
UE
AN
D R
EFU
ND
ING
BO
ND
S, 2
012
THIS
ESC
RO
W A
GR
EEM
ENT,
dat
ed a
s of
___
____
___,
201
2 (h
erei
n, t
oget
her
with
an
y am
endm
ents
or s
uppl
emen
ts h
eret
o, c
alle
d th
e “A
gree
men
t”) i
s en
tere
d in
to b
y an
d be
twee
n W
este
rn
Was
hing
ton
Uni
vers
ity
(her
ein
calle
d th
e “U
nive
rsity
”)
and
____
____
____
____
____
____
____
____
____
__ a
s es
crow
age
nt (
here
in,
toge
ther
with
any
su
cces
sor i
n su
ch c
apac
ity, c
alle
d th
e “E
scro
w A
gent
”).
The
notic
e ad
dres
ses
of th
e U
nive
rsity
an
d th
e Es
crow
Age
nt a
re sh
own
on E
xhib
it A
atta
ched
her
eto
and
mad
e a
part
here
of.
W
ITN
ES
SE
TH
:
WH
EREA
S, th
e U
nive
rsity
her
etof
ore
has
issu
ed a
nd th
ere
pres
ently
rem
ain
outs
tand
ing
the
oblig
atio
ns d
escr
ibed
in E
xhib
it B
atta
ched
her
eto
(the
“Ref
unde
d B
onds
”); a
nd
W
HER
EAS,
pur
suan
t to
Res
olut
ion
No.
201
2-01
ado
pted
on
Febr
uary
10,
201
2 (th
e “B
ond
Res
olut
ion”
), th
e U
nive
rsity
has
det
erm
ined
to is
sue
its S
tude
nt R
ecre
atio
n Fe
e R
even
ue
and
Ref
undi
ng B
onds
, Ser
ies 2
012
(the
“Bon
ds”)
; and
WH
EREA
S, a
por
tion
of t
he p
roce
eds
of t
he B
onds
are
bei
ng u
sed
for
the
purp
ose
of
prov
idin
g fu
nds t
o pa
y th
e co
sts o
f ref
undi
ng th
e R
efun
ded
Bon
ds; a
nd
W
HER
EAS,
pur
suan
t to
the
Bon
d R
esol
utio
n, th
e R
efun
ded
Bon
ds h
ave
been
des
igna
ted
for
rede
mpt
ion
prio
r to
the
ir sc
hedu
led
mat
urity
dat
es a
nd,
afte
r pr
ovis
ion
is m
ade
for
such
re
dem
ptio
n, th
e R
efun
ded
Bon
ds w
ill c
ome
due
in s
uch
year
s, be
ar in
tere
st a
t suc
h ra
tes,
and
be
paya
ble
at su
ch ti
mes
and
in s
uch
amou
nts a
s are
set f
orth
in E
xhib
it C
atta
ched
her
eto
and
mad
e a
part
here
of; a
nd
W
HER
EAS,
whe
n Es
crow
ed S
ecur
ities
hav
e be
en d
epos
ited
with
the
Escr
ow A
gent
for
the
paym
ent o
f al
l prin
cipa
l and
inte
rest
of
the
Ref
unde
d B
onds
whe
n du
e, th
en th
e R
efun
ded
Bon
ds s
hall
no lo
nger
be
rega
rded
as
outs
tand
ing
exce
pt f
or th
e pu
rpos
e of
rec
eivi
ng p
aym
ent
from
the
fund
s pro
vide
d fo
r suc
h pu
rpos
e; a
nd
W
HER
EAS,
the
issu
ance
, sal
e, a
nd d
eliv
ery
of th
e B
onds
hav
e be
en d
uly
auth
oriz
ed to
be
issu
ed, s
old,
and
del
iver
ed fo
r the
pur
pose
of o
btai
ning
the
fund
s re
quire
d to
pro
vide
for t
he
paym
ent o
f the
prin
cipa
l of,
inte
rest
on
and
rede
mpt
ion
prem
ium
(if a
ny) o
n th
e R
efun
ded
Bon
ds
whe
n du
e as
show
n on
Exh
ibit
C a
ttach
ed h
eret
o;
N
OW
, TH
EREF
OR
E, i
n co
nsid
erat
ion
of t
he m
utua
l un
derta
king
s, pr
omis
es a
nd
agre
emen
ts h
erei
n co
ntai
ned,
the
suff
icie
ncy
of w
hich
her
eby
are
ackn
owle
dged
, and
to s
ecur
e th
e fu
ll an
d tim
ely
paym
ent
of p
rinci
pal
of a
nd t
he i
nter
est
on t
he R
efun
ded
Bon
ds,
the
Uni
vers
ity a
nd t
he E
scro
w A
gent
mut
ually
und
erta
ke,
prom
ise
and
agre
e fo
r th
emse
lves
and
th
eir r
espe
ctiv
e re
pres
enta
tives
and
succ
esso
rs, a
s fol
low
s:
A
-2
Art
icle
1. D
efin
ition
s
Sect
ion
1.1.
Def
initi
ons.
U
nles
s th
e co
ntex
t cl
early
ind
icat
es o
ther
wis
e, t
he f
ollo
win
g te
rms
shal
l ha
ve t
he
mea
ning
s ass
igne
d to
them
bel
ow w
hen
they
are
use
d in
this
Agr
eem
ent:
E
scro
w F
und
mea
ns t
he f
und
crea
ted
by t
his
Agr
eem
ent
to b
e es
tabl
ishe
d, h
eld
and
adm
inis
tere
d by
the
Escr
ow A
gent
pur
suan
t to
the
prov
isio
ns o
f thi
s Agr
eem
ent.
E
scro
wed
Se
curi
ties
mea
ns
the
nonc
alla
ble
Gov
ernm
ent
Obl
igat
ions
des
crib
ed i
n Ex
hibi
t D a
ttach
ed t
o th
is A
gree
men
t, or
cas
h or
oth
er n
onca
llabl
e ob
ligat
ions
sub
stitu
ted
ther
efor
pur
suan
t to
Sect
ion
4.2
of th
is A
gree
men
t.
Gov
ernm
ent
Obl
igat
ions
m
eans
di
rect
, no
ncal
labl
e (a
) U
nite
d St
ates
Tr
easu
ry
Obl
igat
ions
, (b)
Uni
ted
Stat
es T
reas
ury
Obl
igat
ions
- S
tate
and
Loc
al G
over
nmen
t Se
ries,
(c)
non-
prep
ayab
le o
blig
atio
ns w
hich
are
unc
ondi
tiona
lly g
uara
ntee
d as
to f
ull a
nd ti
mel
y pa
ymen
t of
prin
cipa
l an
d in
tere
st b
y th
e U
nite
d St
ates
of
Am
eric
a or
(d)
REF
CO
RP
debt
obl
igat
ions
un
cond
ition
ally
gua
rant
eed
by th
e U
nite
d St
ates
.
Payi
ng A
gent
mea
ns th
e fis
cal a
genc
y of
the
Stat
e of
Was
hing
ton,
as t
he p
ayin
g ag
ent f
or
the
Ref
unde
d B
onds
.
Sect
ion
1.2.
Oth
er D
efin
ition
s.
The
term
s “A
gree
men
t,” “
Uni
vers
ity,”
“Es
crow
Age
nt,”
“B
ond
Res
olut
ion,
” “R
efun
ded
Bon
ds,”
and
“B
onds
” w
hen
they
are
use
d in
this
Agr
eem
ent,
shal
l hav
e th
e m
eani
ngs a
ssig
ned
to
them
in th
e pr
eam
ble
to th
is A
gree
men
t.
Sect
ion
1.3.
Int
erpr
etat
ions
.
The
title
s an
d he
adin
gs o
f the
arti
cles
and
sec
tions
of t
his
Agr
eem
ent h
ave
been
inse
rted
for c
onve
nien
ce a
nd re
fere
nce
only
and
are
not
to b
e co
nsid
ered
a p
art h
ereo
f and
shal
l not
in a
ny
way
mod
ify o
r re
stric
t th
e te
rms
here
of.
This
Agr
eem
ent a
nd a
ll of
the
term
s an
d pr
ovis
ions
he
reof
sha
ll be
libe
rally
con
stru
ed to
eff
ectu
ate
the
purp
oses
set
forth
her
ein
and
to a
chie
ve th
e in
tend
ed p
urpo
se o
f pr
ovid
ing
for
the
refu
ndin
g of
the
Ref
unde
d B
onds
in
acco
rdan
ce w
ith
appl
icab
le la
w.
B-28
A
-3
Art
icle
2.
Dep
osit
of F
unds
and
Esc
row
ed S
ecur
ities
Sect
ion
2.1.
Dep
osits
in th
e E
scro
w F
und.
Con
curr
ently
with
the
sal
e an
d de
liver
y of
the
Bon
ds t
he U
nive
rsity
sha
ll de
posi
t, or
ca
use
to b
e de
posi
ted,
with
the
Escr
ow A
gent
, for
dep
osit
in th
e Es
crow
Fun
d, th
e fu
nds
(fro
m
the
proc
eeds
of t
he B
onds
and
a c
ash
cont
ribut
ion
by th
e U
nive
rsity
) su
ffic
ient
to p
urch
ase
the
Escr
owed
Sec
uriti
es a
nd p
ay c
osts
of
issu
ance
des
crib
ed in
Exh
ibit
D a
ttach
ed h
eret
o, a
nd th
e Es
crow
Age
nt s
hall,
upo
n th
e re
ceip
t th
ereo
f, ac
know
ledg
e su
ch r
ecei
pt t
o th
e U
nive
rsity
in
writ
ing.
Art
icle
3.
Cre
atio
n an
d O
pera
tion
of E
scro
w F
und
Se
ctio
n 3.
1. E
scro
w F
und.
The
Escr
ow A
gent
has
cre
ated
on
its b
ooks
a sp
ecia
l tru
st fu
nd a
nd ir
revo
cabl
e es
crow
to
be k
now
n as
the
Ref
undi
ng A
ccou
nt (t
he “
Escr
ow F
und”
). T
he E
scro
w A
gent
her
eby
agre
es th
at
upon
rece
ipt t
here
of it
will
dep
osit
to th
e cr
edit
of th
e Es
crow
Fun
d th
e fu
nds
and
the
Escr
owed
Se
curit
ies
desc
ribed
in
Exhi
bit
D a
ttach
ed h
eret
o an
d pa
y C
osts
of
Issu
ance
as
desc
ribed
in
Exhi
bit
D.
Such
dep
osit,
all
proc
eeds
the
refro
m, a
nd a
ll ca
sh b
alan
ces
from
tim
e to
tim
e on
de
posi
t the
rein
(a)
sha
ll be
the
prop
erty
of
the
Escr
ow F
und,
(b)
sha
ll be
app
lied
only
in s
trict
co
nfor
mity
with
the
ter
ms
and
cond
ition
s of
thi
s A
gree
men
t, an
d (c
) ar
e he
reby
irr
evoc
ably
pl
edge
d to
the
paym
ent o
f the
prin
cipa
l of a
nd in
tere
st o
n th
e R
efun
ded
Bon
ds, w
hich
pay
men
t sh
all b
e m
ade
by ti
mel
y tra
nsfe
rs o
f su
ch a
mou
nts
at s
uch
times
as
are
prov
ided
for
in S
ectio
n 3.
2 he
reof
. W
hen
the
final
tran
sfer
s ha
ve b
een
mad
e fo
r th
e pa
ymen
t of
such
prin
cipa
l of
and
inte
rest
on
the
Ref
unde
d B
onds
, an
y ba
lanc
e th
en r
emai
ning
in
the
Escr
ow F
und
shal
l be
tra
nsfe
rred
to
the
Uni
vers
ity,
and
the
Escr
ow A
gent
sha
ll th
ereu
pon
be d
isch
arge
d fr
om a
ny
furth
er d
utie
s her
eund
er.
Se
ctio
n 3.
2. P
aym
ent o
f Pri
ncip
al a
nd In
tere
st.
Th
e Es
crow
Age
nt is
her
eby
irrev
ocab
ly in
stru
cted
to tr
ansf
er to
the
Payi
ng A
gent
from
th
e ca
sh b
alan
ces
from
tim
e to
tim
e on
dep
osit
in th
e Es
crow
Fun
d, th
e am
ount
s re
quire
d to
pay
th
e pr
inci
pal o
f the
Ref
unde
d B
onds
at t
heir
resp
ectiv
e re
dem
ptio
n da
tes
and
inte
rest
ther
eon
to
such
rede
mpt
ion
date
s in
the
amou
nts a
nd a
t the
tim
es sh
own
in E
xhib
it C
atta
ched
her
eto.
Sect
ion
3.3.
Suf
ficie
ncy
of E
scro
w F
und.
The
Uni
vers
ity re
pres
ents
that
, bas
ed u
pon
the
info
rmat
ion
prov
ided
by
SDM
Adv
isor
s, In
c.,
the
succ
essi
ve r
ecei
pts
of t
he p
rinci
pal
of a
nd i
nter
est
on t
he E
scro
wed
Sec
uriti
es w
ill
assu
re th
at th
e ca
sh b
alan
ce o
n de
posi
t fro
m ti
me
to ti
me
in th
e Es
crow
Fun
d w
ill b
e at
all
times
su
ffic
ient
to p
rovi
de m
oney
s fo
r tra
nsfe
r to
the
Payi
ng A
gent
at t
he ti
mes
and
in th
e am
ount
s re
quire
d to
pay
the
inte
rest
on
the
Ref
unde
d B
onds
as
such
inte
rest
com
es d
ue a
nd th
e pr
inci
pal
of th
e R
efun
ded
Bon
ds a
s th
e R
efun
ded
Bon
ds a
re p
aid
on a
n op
tiona
l red
empt
ion
date
prio
r to
mat
urity
, all
as m
ore
fully
set
forth
in E
xhib
it E
atta
ched
her
eto.
If,
for a
ny re
ason
, at a
ny ti
me,
th
e ca
sh b
alan
ces
on d
epos
it or
sch
edul
ed t
o be
on
depo
sit
in t
he E
scro
w F
und
shal
l be
in
suff
icie
nt to
tran
sfer
the
amou
nts
requ
ired
by th
e Pa
ying
Age
nt to
mak
e th
e pa
ymen
ts s
et fo
rth
A
-4
in S
ectio
n 3.
2. h
ereo
f, th
e U
nive
rsity
sha
ll tim
ely
depo
sit i
n th
e Es
crow
Fun
d, f
rom
any
fun
ds
that
are
law
fully
ava
ilabl
e th
eref
or,
addi
tiona
l fu
nds
in t
he a
mou
nts
requ
ired
to m
ake
such
pa
ymen
ts.
Not
ice
of a
ny s
uch
insu
ffici
ency
sha
ll be
giv
en p
rom
ptly
as
here
inaf
ter p
rovi
ded,
but
th
e Es
crow
Age
nt s
hall
not i
n an
y m
anne
r be
res
pons
ible
for
any
insu
ffici
ency
of
fund
s in
the
Escr
ow F
und
or th
e U
nive
rsity
’s fa
ilure
to m
ake
addi
tiona
l dep
osits
ther
eto.
Sect
ion
3.4.
Tru
st F
und.
The
Escr
ow A
gent
or i
ts a
ffili
ate,
sha
ll ho
ld a
t all
times
the
Escr
ow F
und,
the
Escr
owed
Se
curit
ies
and
all o
ther
ass
ets
of th
e Es
crow
Fun
d, w
holly
seg
rega
ted
from
all
othe
r fu
nds
and
secu
ritie
s on
dep
osit
with
the
Escr
ow A
gent
; it s
hall
neve
r allo
w th
e Es
crow
ed S
ecur
ities
or a
ny
othe
r as
sets
of
the
Escr
ow F
und
to b
e co
mm
ingl
ed w
ith a
ny o
ther
fun
ds o
r se
curit
ies
of t
he
Escr
ow A
gent
; and
it s
hall
hold
and
dis
pose
of
the
asse
ts o
f th
e Es
crow
Fun
d on
ly a
s se
t for
th
here
in.
The
Escr
owed
Sec
uriti
es a
nd o
ther
ass
ets o
f the
Esc
row
Fun
d sh
all a
lway
s be
mai
ntai
ned
by th
e Es
crow
Age
nt a
s tru
st fu
nds
for
the
bene
fit o
f the
ow
ners
of t
he R
efun
ded
Bon
ds; a
nd a
sp
ecia
l acc
ount
ther
eof s
hall
at a
ll tim
es b
e m
aint
aine
d on
the
book
s of
the
Escr
ow A
gent
. Th
e ow
ners
of
the
Ref
unde
d B
onds
sha
ll be
ent
itled
to th
e sa
me
pref
erre
d cl
aim
and
firs
t lie
n up
on
the
Escr
owed
Sec
uriti
es, t
he p
roce
eds
ther
eof,
and
all o
ther
ass
ets
of th
e Es
crow
Fun
d to
whi
ch
they
are
ent
itled
as
owne
rs o
f the
Ref
unde
d B
onds
. Th
e am
ount
s re
ceiv
ed b
y th
e Es
crow
Age
nt
unde
r th
is A
gree
men
t sh
all
not
be c
onsi
dere
d as
a b
anki
ng d
epos
it by
the
Uni
vers
ity, a
nd th
e Es
crow
Age
nt s
hall
have
no
right
to
title
with
res
pect
the
reto
exc
ept a
s a
trust
ee a
nd E
scro
w
Age
nt u
nder
the
term
s of t
his A
gree
men
t. T
he a
mou
nts r
ecei
ved
by th
e Es
crow
Age
nt u
nder
this
A
gree
men
t sha
ll no
t be
subj
ect t
o w
arra
nts,
draf
ts o
r che
cks
draw
n by
the
Uni
vers
ity o
r, ex
cept
to
the
exte
nt e
xpre
ssly
her
ein
prov
ided
, by
the
Payi
ng A
gent
.
Art
icle
4.
Lim
itatio
n on
Inve
stm
ents
Sect
ion
4.1.
Inv
estm
ents
.
Exce
pt f
or th
e in
itial
inve
stm
ent i
n th
e Es
crow
ed S
ecur
ities
, and
exc
ept a
s pr
ovid
ed in
Se
ctio
n 4.
2 he
reof
, the
Esc
row
Age
nt s
hall
not h
ave
any
pow
er o
r dut
y to
inve
st o
r rei
nves
t any
m
oney
hel
d he
reun
der,
or to
mak
e su
bstit
utio
ns o
f the
Esc
row
ed S
ecur
ities
, or t
o se
ll, tr
ansf
er, o
r ot
herw
ise
disp
ose
of th
e Es
crow
ed S
ecur
ities
.
Sect
ion
4.2.
Sub
stitu
tion
of S
ecur
ities
.
At
the
writ
ten
requ
est
of t
he U
nive
rsity
, an
d up
on c
ompl
ianc
e w
ith t
he c
ondi
tions
he
rein
afte
r st
ated
, th
e Es
crow
Age
nt s
hall
utili
ze c
ash
bala
nces
in
the
Escr
ow F
und,
or
sell,
tra
nsfe
r, ot
herw
ise
disp
ose
of o
r req
uest
the
rede
mpt
ion
of th
e Es
crow
ed S
ecur
ities
and
app
ly th
e pr
ocee
ds t
here
from
to
purc
hase
Ref
unde
d B
onds
or
Gov
ernm
ent
Obl
igat
ions
whi
ch d
o no
t pe
rmit
the
rede
mpt
ion
ther
eof a
t the
opt
ion
of th
e ob
ligor
. A
ny su
ch tr
ansa
ctio
n m
ay b
e ef
fect
ed
by th
e Es
crow
Age
nt o
nly
if (a
) the
Esc
row
Age
nt s
hall
have
rece
ived
a w
ritte
n op
inio
n fro
m a
fir
m o
f cer
tifie
d pu
blic
acc
ount
ants
that
such
tran
sact
ion
will
not
cau
se th
e am
ount
of m
oney
and
se
curit
ies
in th
e Es
crow
Fun
d to
be
redu
ced
belo
w a
n am
ount
suf
ficie
nt to
pro
vide
for
the
full
and
timel
y pa
ymen
t of p
rinci
pal o
f and
inte
rest
on
all o
f the
rem
aini
ng R
efun
ded
Bon
ds a
s th
ey
beco
me
due,
taki
ng in
to a
ccou
nt a
ny o
ptio
nal r
edem
ptio
n th
ereo
f exe
rcis
ed b
y th
e U
nive
rsity
in
conn
ectio
n w
ith s
uch
trans
actio
n; a
nd (b
) the
Esc
row
Age
nt s
hall
have
rece
ived
the
unqu
alifi
ed
B-29
A
-5
writ
ten
lega
l opi
nion
of i
ts b
ond
coun
sel o
r tax
cou
nsel
to th
e ef
fect
that
such
tran
sact
ion
will
not
ca
use
any
of th
e B
onds
or
Ref
unde
d B
onds
to b
e an
“A
rbitr
age
Bon
d” w
ithin
the
mea
ning
of
Sect
ion
148
of th
e In
tern
al R
even
ue C
ode
of 1
986,
as a
men
ded.
Art
icle
5.
App
licat
ion
of C
ash
Bal
ance
s
Sect
ion
5.1.
In
Gen
eral
.
Exce
pt a
s pr
ovid
ed i
n Se
ctio
n 2.
1, 3
.2 a
nd 4
.2 h
ereo
f, no
with
draw
als,
trans
fers
or
rein
vest
men
t sha
ll be
mad
e of
cas
h ba
lanc
es in
the
Escr
ow F
und.
Cas
h ba
lanc
es sh
all b
e he
ld b
y th
e Es
crow
Age
nt in
Uni
ted
Stat
es c
urre
ncy
as c
ash
bala
nces
as
show
n on
the
book
s an
d re
cord
s of
the
Esc
row
Age
nt a
nd,
exce
pt a
s pr
ovid
ed h
erei
n, s
hall
not
be r
einv
este
d by
the
Esc
row
A
gent
; pro
vide
d, h
owev
er, a
con
vers
ion
to c
urre
ncy
shal
l not
be
requ
ired
(i) f
or s
o lo
ng a
s th
e Es
crow
Age
nt’s
inte
rnal
rate
of r
etur
n do
es n
ot e
xcee
d tw
enty
(20)
per
cent
, or (
ii) if
the
Escr
ow
Age
nt’s
inte
rnal
rate
of r
etur
n ex
ceed
s tw
enty
(20)
per
cent
, the
Esc
row
Age
nt re
ceiv
es a
lette
r of
inst
ruct
ions
, acc
ompa
nied
by
the
opin
ion
of n
atio
nally
rec
ogni
zed
bond
cou
nsel
, app
rovi
ng th
e as
sum
ed re
inve
stm
ent o
f suc
h pr
ocee
ds a
t suc
h hi
gher
yie
ld.
A
rtic
le 6
. R
edem
ptio
n of
Ref
unde
d B
onds
Sect
ion
6.1.
Cal
l for
Red
empt
ion.
The
Uni
vers
ity h
ereb
y irr
evoc
ably
cal
ls t
he R
efun
ded
Bon
ds f
or r
edem
ptio
n on
the
ir ea
rlies
t red
empt
ion
date
s, as
show
n on
App
endi
x A
atta
ched
her
eto.
Sect
ion
6.2.
Not
ice
of R
edem
ptio
n/N
otic
e of
Def
easa
nce.
The
Escr
ow A
gent
agr
ees t
o gi
ve a
not
ice
of d
efea
sanc
e an
d a
notic
e of
the
rede
mpt
ion
of
the
Ref
unde
d B
onds
pur
suan
t to
the
term
s of
the
Ref
unde
d B
onds
and
in s
ubst
antia
lly th
e fo
rms
atta
ched
her
eto
as A
ppen
dice
s A
and
B a
ttach
ed h
eret
o an
d as
des
crib
ed o
n sa
id A
ppen
dice
s A
an
d B
to th
e Pa
ying
Age
nt fo
r dis
tribu
tion
as d
escr
ibed
ther
ein.
The
Not
ice
of D
efea
sanc
e sh
all
be g
iven
imm
edia
tely
follo
win
g th
e ex
ecut
ion
of th
is A
gree
men
t, an
d th
e N
otic
e of
Red
empt
ion
shal
l be
give
n in
acc
orda
nce
with
the
Res
olut
ion
auth
oriz
ing
the
Ref
unde
d B
onds
. Th
e Es
crow
A
gent
her
eby
certi
fies
that
pro
visi
on s
atis
fact
ory
and
acce
ptab
le to
the
Escr
ow A
gent
has
bee
n m
ade
for t
he g
ivin
g of
Not
ice
of R
edem
ptio
n of
the
Ref
unde
d B
onds
.
Art
icle
7.
Rec
ords
and
Rep
orts
Sect
ion
7.1.
Rec
ords
.
The
Escr
ow A
gent
will
kee
p bo
oks o
f rec
ord
and
acco
unt i
n w
hich
com
plet
e an
d ac
cura
te
entri
es s
hall
be m
ade
of a
ll tra
nsac
tions
rel
atin
g to
the
rece
ipts
, dis
burs
emen
ts, a
lloca
tions
and
ap
plic
atio
n of
the
mon
ey a
nd E
scro
wed
Sec
uriti
es d
epos
ited
to th
e Es
crow
Fun
d an
d al
l pro
ceed
s th
ereo
f, an
d su
ch b
ooks
sha
ll be
ava
ilabl
e fo
r in
spec
tion
durin
g bu
sine
ss h
ours
and
afte
r re
ason
able
not
ice.
A
-6
Se
ctio
n 7.
2. R
epor
ts.
W
hile
thi
s A
gree
men
t re
mai
ns i
n ef
fect
, the
Esc
row
Age
nt q
uarte
rly s
hall
prep
are
and
send
to th
e U
nive
rsity
a w
ritte
n re
port
sum
mar
izin
g al
l tra
nsac
tions
rela
ting
to th
e Es
crow
Fun
d du
ring
the
prec
edin
g fin
anci
al q
uarte
r, in
clud
ing,
with
out l
imita
tion,
cre
dits
to th
e Es
crow
Fun
d as
a re
sult
of in
tere
st p
aym
ents
on
or m
atur
ities
of t
he E
scro
wed
Sec
uriti
es a
nd tr
ansf
ers f
rom
the
Escr
ow F
und
for
paym
ents
on
the
Ref
unde
d B
onds
or
othe
rwis
e, t
oget
her
with
a d
etai
led
stat
emen
t of
all E
scro
wed
Sec
uriti
es a
nd th
e ca
sh b
alan
ce o
n de
posi
t in
the
Escr
ow F
und
as o
f th
e en
d of
such
per
iod.
Art
icle
8.
Con
cern
ing
the
Payi
ng A
gent
and
Esc
row
Age
nt
Se
ctio
n 8.
1. R
epre
sent
atio
ns.
Th
e Es
crow
Age
nt h
ereb
y re
pres
ents
that
it h
as a
ll ne
cess
ary
pow
er a
nd a
utho
rity
to e
nter
in
to th
is A
gree
men
t and
und
erta
ke th
e ob
ligat
ions
and
res
pons
ibili
ties
impo
sed
upon
it h
erei
n,
and
that
it w
ill c
arry
out
all
of it
s obl
igat
ions
her
eund
er.
Se
ctio
n 8.
2. L
imita
tion
on L
iabi
lity.
The
liabi
lity
of th
e Es
crow
Age
nt to
tran
sfer
fund
s for
the
paym
ent o
f the
prin
cipa
l of a
nd
inte
rest
on
the
Ref
unde
d B
onds
sha
ll be
lim
ited
to th
e pr
ocee
ds o
f the
Esc
row
ed S
ecur
ities
and
th
e ca
sh b
alan
ces
from
tim
e to
tim
e on
dep
osit
in t
he E
scro
w F
und.
N
otw
ithst
andi
ng a
ny
prov
isio
n co
ntai
ned
here
in to
the
cont
rary
, the
Esc
row
Age
nt s
hall
have
no
liabi
lity
wha
tsoe
ver
for t
he in
suff
icie
ncy
of fu
nds f
rom
tim
e to
tim
e in
the
Escr
ow F
und
or a
ny fa
ilure
of t
he o
blig
ors
of th
e Es
crow
ed S
ecur
ities
to m
ake
timel
y pa
ymen
t the
reon
, exc
ept f
or th
e ob
ligat
ion
to n
otify
th
e U
nive
rsity
pro
mpt
ly o
f any
such
occ
urre
nce.
The
reci
tals
her
ein
and
in t
he p
roce
edin
gs a
utho
rizin
g th
e B
onds
sha
ll be
tak
en a
s th
e st
atem
ents
of t
he U
nive
rsity
and
sha
ll no
t be
cons
ider
ed a
s m
ade
by, o
r im
posi
ng a
ny o
blig
atio
n or
liab
ility
upo
n, th
e Es
crow
Age
nt.
Th
e Es
crow
Age
nt i
s no
t a
party
to
the
proc
eedi
ngs
auth
oriz
ing
the
Bon
ds o
r th
e R
efun
ded
Bon
ds a
nd is
not
resp
onsi
ble
for n
or b
ound
by
any
of th
e pr
ovis
ions
ther
eof (
exce
pt to
th
e ex
tent
that
the
Escr
ow A
gent
may
be
a pl
ace
of p
aym
ent a
nd p
ayin
g ag
ent a
nd/o
r a p
ayin
g ag
ent/r
egis
trar
ther
efor
). I
n its
cap
acity
as
Escr
ow A
gent
, it
is a
gree
d th
at t
he E
scro
w A
gent
ne
ed lo
ok o
nly
to th
e te
rms a
nd p
rovi
sion
s of t
his A
gree
men
t.
The
Escr
ow A
gent
mak
es n
o re
pres
enta
tions
as
to th
e va
lue,
con
ditio
ns o
r suf
ficie
ncy
of
the
Escr
ow F
und,
or
any
part
ther
eof,
or a
s to
the
titl
e of
the
Uni
vers
ity t
here
to, o
r as
to
the
secu
rity
affo
rded
the
reby
or
here
by,
and
the
Escr
ow A
gent
sha
ll no
t in
cur
any
liabi
lity
or
resp
onsi
bilit
y in
resp
ect t
o an
y of
such
mat
ters
.
It is
the
inte
ntio
n of
the
parti
es h
eret
o th
at th
e Es
crow
Age
nt s
hall
neve
r be
requ
ired
to
use
or a
dvan
ce it
s ow
n fu
nds
or o
ther
wis
e in
cur p
erso
nal f
inan
cial
liab
ility
in th
e pe
rform
ance
of
any
of it
s dut
ies o
r the
exe
rcis
e of
any
of i
ts ri
ghts
and
pow
ers h
ereu
nder
.
B-30
A
-7
Th
e Es
crow
Age
nt sh
all n
ot b
e lia
ble
for a
ny a
ctio
n ta
ken
or n
egle
cted
to b
e ta
ken
by it
in
good
fai
th in
any
exe
rcis
e of
rea
sona
ble
care
and
bel
ieve
d by
it to
be
with
in th
e di
scre
tion
or
pow
er c
onfe
rred
upo
n it
by th
is A
gree
men
t, no
r sh
all t
he E
scro
w A
gent
be
resp
onsi
ble
for
the
cons
eque
nces
of a
ny e
rror
of j
udgm
ent;
and
the
Escr
ow A
gent
shal
l not
be
answ
erab
le e
xcep
t for
its
ow
n ne
glec
t or w
illfu
l mis
cond
uct,
nor f
or a
ny lo
ss u
nles
s th
e sa
me
shal
l hav
e be
en th
roug
h its
neg
ligen
ce o
r bad
faith
.
Unl
ess
it is
spe
cific
ally
oth
erw
ise
prov
ided
her
ein,
the
Esc
row
Age
nt h
as n
o du
ty t
o de
term
ine
or i
nqui
re i
nto
the
happ
enin
g or
occ
urre
nce
of a
ny e
vent
or
cont
inge
ncy
or t
he
perf
orm
ance
or
failu
re o
f pe
rfor
man
ce o
f th
e U
nive
rsity
with
res
pect
to
arra
ngem
ents
or
cont
ract
s w
ith o
ther
s, w
ith t
he E
scro
w A
gent
’s s
ole
duty
her
eund
er b
eing
to
safe
guar
d th
e Es
crow
Fun
d, t
o di
spos
e of
and
del
iver
the
sam
e in
acc
orda
nce
with
thi
s A
gree
men
t. I
f, ho
wev
er,
the
Escr
ow A
gent
is
calle
d up
on b
y th
e te
rms
of t
his
Agr
eem
ent
to d
eter
min
e th
e oc
curr
ence
of
any
even
t or
cont
inge
ncy,
the
Escr
ow A
gent
sha
ll be
obl
igat
ed, i
n m
akin
g su
ch
dete
rmin
atio
n, o
nly
to e
xerc
ise
reas
onab
le c
are
and
dilig
ence
, and
in e
vent
of
erro
r in
mak
ing
such
det
erm
inat
ion
the
Escr
ow A
gent
sha
ll be
liab
le o
nly
for
its o
wn
will
ful m
isco
nduc
t or
its
negl
igen
ce.
In d
eter
min
ing
the
occu
rren
ce o
f any
suc
h ev
ent o
r con
tinge
ncy
the
Escr
ow A
gent
m
ay re
ques
t fro
m th
e U
nive
rsity
or a
ny o
ther
per
son
such
reas
onab
le a
dditi
onal
evi
denc
e as
the
Escr
ow A
gent
in
its d
iscr
etio
n m
ay d
eem
nec
essa
ry t
o de
term
ine
any
fact
rel
atin
g to
the
oc
curr
ence
of
such
eve
nt o
r co
ntin
genc
y, a
nd i
n th
is c
onne
ctio
n m
ay m
ake
inqu
iries
of,
and
cons
ult w
ith, a
mon
g ot
hers
, the
Uni
vers
ity a
t any
tim
e.
Se
ctio
n 8.
3. C
ompe
nsat
ion.
The
Uni
vers
ity s
hall
pay
to th
e Es
crow
Age
nt fe
es fo
r per
form
ing
the
serv
ices
her
eund
er
and
for t
he e
xpen
ses
incu
rred
or t
o be
incu
rred
by th
e Es
crow
Age
nt in
the
adm
inis
tratio
n of
this
A
gree
men
t pu
rsua
nt t
o th
e te
rms
of t
he F
ee S
ched
ule
atta
ched
her
eto
as A
ppen
dix
C.
The
Es
crow
Age
nt h
ereb
y ag
rees
that
in n
o ev
ent s
hall
it ev
er a
sser
t any
cla
im o
r lie
n ag
ains
t the
Es
crow
Fun
d fo
r any
fees
for i
ts s
ervi
ces,
whe
ther
regu
lar o
r ext
raor
dina
ry, a
s Es
crow
Age
nt, o
r in
any
oth
er c
apac
ity, o
r fo
r re
imbu
rsem
ent f
or a
ny o
f its
exp
ense
s as
Esc
row
Age
nt o
r in
any
ot
her c
apac
ity.
Se
ctio
n 8.
4. S
ucce
ssor
Esc
row
Age
nts.
A
ny c
orpo
ratio
n, a
ssoc
iatio
n or
oth
er e
ntity
int
o w
hich
the
Esc
row
Age
nt m
ay b
e co
nver
ted
or m
erge
d, o
r with
whi
ch it
may
be
cons
olid
ated
, or t
o w
hich
it m
ay s
ell o
r oth
erw
ise
trans
fer
all
or s
ubst
antia
lly a
ll of
its
cor
pora
te t
rust
ass
ets
and
busi
ness
or
any
corp
orat
ion,
as
soci
atio
n or
oth
er e
ntity
res
ultin
g fr
om a
ny s
uch
conv
ersi
on, s
ale,
mer
ger,
cons
olid
atio
n or
ot
her
trans
fer
to w
hich
it
is a
par
ty,
ipso
fac
to,
shal
l be
and
bec
ome
succ
esso
r es
crow
age
nt
here
unde
r, ve
sted
with
all
othe
r mat
ters
as
was
its
pred
eces
sor,
with
out t
he e
xecu
tion
or fi
ling
of
any
inst
rum
ent
or a
ny f
urth
er a
ct o
n th
e pa
rt of
the
par
ties
here
to,
notw
ithst
andi
ng a
nyth
ing
here
in to
the
cont
rary
.
If at
any
tim
e th
e Es
crow
Age
nt o
r its
leg
al s
ucce
ssor
or
succ
esso
rs s
houl
d be
com
e un
able
, th
roug
h op
erat
ion
or l
aw o
r ot
herw
ise,
to
act
as E
scro
w A
gent
her
eund
er,
or i
f its
pr
oper
ty a
nd a
ffai
rs s
hall
be t
aken
und
er t
he c
ontro
l of
any
sta
te o
r fe
dera
l co
urt
or
adm
inis
trativ
e bo
dy b
ecau
se o
f ins
olve
ncy
or b
ankr
uptc
y or
for a
ny o
ther
reas
on, a
vac
ancy
shal
l fo
rthw
ith e
xist
in
the
offic
e of
Esc
row
Age
nt h
ereu
nder
. I
n su
ch e
vent
the
Uni
vers
ity,
by
A
-8
appr
opria
te a
ctio
n, p
rom
ptly
shal
l app
oint
an
Escr
ow A
gent
to fi
ll su
ch v
acan
cy.
If no
succ
esso
r Es
crow
Age
nt s
hall
have
bee
n ap
poin
ted
by th
e U
nive
rsity
with
in s
ixty
(60
) da
ys, a
suc
cess
or
may
be
appo
inte
d by
the
owne
rs o
f a m
ajor
ity in
prin
cipa
l am
ount
of t
he R
efun
ded
Bon
ds th
en
outs
tand
ing
by a
n in
stru
men
t or i
nstru
men
ts in
writ
ing
filed
with
the
Uni
vers
ity, s
igne
d by
suc
h ow
ners
or
by th
eir
duly
aut
horiz
ed a
ttorn
eys-
in-f
act.
If,
in a
pro
per
case
, no
appo
intm
ent o
f a
succ
esso
r Esc
row
Age
nt sh
all b
e m
ade
purs
uant
to th
e fo
rego
ing
prov
isio
ns o
f thi
s sec
tion
with
in
thre
e (3
) m
onth
s af
ter
a va
canc
y sh
all
have
occ
urre
d, t
he o
wne
r of
any
Ref
unde
d B
ond
may
ap
ply
to a
ny c
ourt
of c
ompe
tent
juris
dict
ion
to a
ppoi
nt a
suc
cess
or E
scro
w A
gent
. Su
ch c
ourt
may
the
reup
on,
afte
r su
ch n
otic
e, i
f an
y, a
s it
may
dee
m p
rope
r, pr
escr
ibe
and
appo
int
a su
cces
sor E
scro
w A
gent
.
Any
suc
cess
or E
scro
w A
gent
sha
ll be
a c
orpo
ratio
n or
gani
zed
and
doin
g bu
sine
ss u
nder
th
e la
ws
of th
e U
nite
d St
ates
or t
he S
tate
of W
ashi
ngto
n, a
utho
rized
und
er s
uch
law
s to
exe
rcis
e co
rpor
ate
trust
pow
ers,
havi
ng i
ts p
rinci
pal
offic
e an
d pl
ace
of b
usin
ess
in t
he S
tate
of
Was
hing
ton,
hav
ing
a co
mbi
ned
capi
tal a
nd s
urpl
us o
f at
leas
t $10
0,00
0,00
0 an
d su
bjec
t to
the
supe
rvis
ion
or e
xam
inat
ion
by fe
dera
l or s
tate
aut
horit
y.
A
ny s
ucce
ssor
Esc
row
Age
nt s
hall
exec
ute,
ack
now
ledg
e an
d de
liver
to th
e U
nive
rsity
an
d th
e Es
crow
Age
nt a
n in
stru
men
t ac
cept
ing
such
app
oint
men
t he
reun
der,
and
the
Escr
ow
Age
nt s
hall
exec
ute
and
deliv
er a
n in
stru
men
t tra
nsfe
rrin
g to
suc
h su
cces
sor
Escr
ow A
gent
, su
bjec
t to
the
term
s of
thi
s A
gree
men
t, al
l th
e rig
hts,
pow
ers
and
trust
s of
the
Esc
row
Age
nt
here
unde
r. U
pon
the
requ
est o
f any
suc
h su
cces
sor E
scro
w A
gent
, the
Uni
vers
ity s
hall
exec
ute
any
and
all i
nstru
men
ts in
writ
ing
for m
ore
fully
and
cer
tain
ly v
estin
g in
and
con
firm
ing
to s
uch
succ
esso
r Esc
row
Age
nt a
ll su
ch ri
ghts
, pow
ers a
nd d
utie
s.
The
oblig
atio
ns a
ssum
ed b
y th
e Es
crow
Age
nt p
ursu
ant
to t
his
Agr
eem
ent
may
be
trans
ferr
ed b
y th
e Es
crow
Age
nt t
o a
succ
esso
r Es
crow
Age
nt i
f (a
) th
e re
quire
men
ts o
f th
is
Sect
ion
8.4
are
satis
fied;
(b) t
he s
ucce
ssor
Esc
row
Age
nt h
as a
ssum
ed a
ll th
e ob
ligat
ions
of t
he
Escr
ow A
gent
und
er th
is A
gree
men
t; an
d (c
) all
of th
e Es
crow
ed S
ecur
ities
and
mon
ey h
eld
by
the
Escr
ow A
gent
pur
suan
t to
thi
s A
gree
men
t ha
ve b
een
duly
tra
nsfe
rred
to
such
suc
cess
or
Escr
ow A
gent
.
Art
icle
9.
Mis
cella
neou
s
Sect
ion
9.1.
Not
ice.
Any
not
ice,
aut
horiz
atio
n, r
eque
st,
or d
eman
d re
quire
d or
per
mitt
ed t
o be
giv
en
here
unde
r sh
all
be i
n w
ritin
g an
d sh
all
be d
eem
ed t
o ha
ve b
een
duly
giv
en w
hen
mai
led
by
regi
ster
ed o
r cer
tifie
d m
ail,
post
age
prep
aid
addr
esse
d to
the
Uni
vers
ity o
r the
Esc
row
Age
nt a
t th
e ad
dres
s sh
own
on E
xhib
it A
atta
ched
her
eto.
Th
e U
nite
d St
ates
Pos
t O
ffic
e re
gist
ered
or
certi
fied
mai
l rec
eipt
sho
win
g de
liver
y of
the
afor
esai
d sh
all b
e co
nclu
sive
evi
denc
e of
the
date
an
d fa
ct o
f de
liver
y.
Any
par
ty h
eret
o m
ay c
hang
e th
e ad
dres
s to
whi
ch n
otic
es a
re t
o be
de
liver
ed b
y gi
ving
to th
e ot
her p
artie
s not
less
than
ten
(10)
day
s prio
r not
ice
ther
eof.
B-31
A
-9
Se
ctio
n 9.
2. T
erm
inat
ion
of R
espo
nsib
ilitie
s.
Upo
n th
e ta
king
of a
ll th
e ac
tions
as
desc
ribed
her
ein
by th
e Es
crow
Age
nt, t
he E
scro
w
Age
nt s
hall
have
no
furth
er o
blig
atio
ns o
r re
spon
sibi
litie
s he
reun
der
to t
he U
nive
rsity
, th
e ow
ners
of
the
Ref
unde
d B
onds
or
to a
ny o
ther
per
son
or p
erso
ns i
n co
nnec
tion
with
thi
s A
gree
men
t.
Sect
ion
9.3.
Bin
ding
Agr
eem
ent.
Th
is A
gree
men
t sh
all
be b
indi
ng u
pon
the
Uni
vers
ity a
nd t
he E
scro
w A
gent
and
the
ir re
spec
tive
succ
esso
rs a
nd le
gal r
epre
sent
ativ
es, a
nd sh
all i
nure
sole
ly to
the
bene
fit o
f the
ow
ners
of
the
Ref
unde
d B
onds
, the
Uni
vers
ity, t
he E
scro
w A
gent
and
the
ir re
spec
tive
succ
esso
rs a
nd
lega
l rep
rese
ntat
ives
.
Sect
ion
9.4.
Sev
erab
ility
.
In c
ase
any
one
or m
ore
of t
he p
rovi
sion
s co
ntai
ned
in t
his
Agr
eem
ent
shal
l fo
r an
y re
ason
be
held
to b
e in
valid
, ille
gal o
r une
nfor
ceab
le in
any
resp
ect,
such
inva
lidity
, ille
galit
y or
un
enfo
rcea
bilit
y sh
all n
ot a
ffec
t any
oth
er p
rovi
sion
s of t
his A
gree
men
t, bu
t thi
s Agr
eem
ent s
hall
be c
onst
rued
as
if su
ch in
valid
or
illeg
al o
r un
enfo
rcea
ble
prov
isio
n ha
d ne
ver
been
con
tain
ed
here
in.
Se
ctio
n 9.
5. W
ashi
ngto
n L
aw G
over
ns.
Th
is A
gree
men
t sh
all
be g
over
ned
excl
usiv
ely
by t
he p
rovi
sion
s he
reof
and
by
the
appl
icab
le la
ws o
f the
Sta
te o
f Was
hing
ton.
Sect
ion
9.6.
Tim
e of
the
Ess
ence
.
Tim
e sh
all b
e of
the
esse
nce
in th
e pe
rfor
man
ce o
f obl
igat
ions
from
tim
e to
tim
e im
pose
d up
on th
e Es
crow
Age
nt b
y th
is A
gree
men
t.
Sect
ion
9.7.
Not
ice
to M
oody
’s, F
itch
and
Stan
dard
& P
oor’
s.
In
the
even
t tha
t thi
s Agr
eem
ent o
r any
pro
visi
on th
ereo
f is s
ever
ed, a
men
ded
or re
voke
d,
the
Stat
e sh
all p
rovi
de w
ritte
n no
tice
of s
uch
seve
ranc
e, a
men
dmen
t or
revo
catio
n to
Moo
dy’s
In
vest
ors
Serv
ice
at 7
Wor
ld T
rade
Cen
ter
at 2
50 G
reen
wic
h St
reet
, N
ew Y
ork,
New
Yor
k,
1000
7, A
ttent
ion:
Pub
lic F
inan
ce R
atin
g D
esk/
Ref
unde
d B
onds
, Fi
tch
Rat
ings
at
One
Sta
te
Stre
et P
laza
, New
Yor
k, N
ew Y
ork,
100
04, A
ttent
ion:
Pub
lic F
inan
ce R
atin
g D
esk/
Ref
unde
d B
onds
and
to S
tand
ard
& P
oor’
s R
atin
gs G
roup
, 55
Wat
er S
treet
, New
Yor
k, N
ew Y
ork
1004
1,
Atte
ntio
n: M
unic
ipal
Bon
d D
epar
tmen
t.
A
-10
Sect
ion
9.8.
Am
endm
ents
.
This
Agr
eem
ent s
hall
not b
e am
ende
d ex
cept
to c
ure
any
ambi
guity
or
form
al d
efec
t or
omis
sion
in
this
Agr
eem
ent.
No
amen
dmen
t sh
all
be e
ffec
tive
unle
ss t
he s
ame
shal
l be
in
writ
ing
and
sign
ed b
y th
e pa
rties
ther
eto.
No
such
am
endm
ent s
hall
adve
rsel
y af
fect
the
right
s of
the
hold
ers
of th
e R
efun
ded
Bon
ds.
No
such
am
endm
ent s
hall
be m
ade
with
out f
irst r
ecei
ving
w
ritte
n co
nfirm
atio
n fr
om th
e ra
ting
agen
cies
(if a
ny) w
hich
hav
e ra
ted
the
Ref
unde
d B
onds
that
su
ch a
dmin
istra
tive
chan
ges
will
not
res
ult
in a
with
draw
al o
r re
duct
ion
of i
ts r
atin
g th
en
assi
gned
to th
e R
efun
ded
Bon
ds.
If th
is A
gree
men
t is
amen
ded,
prio
r writ
ten
notic
e an
d co
pies
of
the
pro
pose
d ch
ange
s sh
all
be g
iven
to
the
ratin
g ag
enci
es w
hich
hav
e ra
ted
the
Ref
unde
d B
onds
.
EXEC
UTE
D a
s of t
he d
ate
first
writ
ten
abov
e.
W
EST
ER
N W
ASH
ING
TO
N
UN
IVE
RSI
TY
Title
:
[E
SCR
OW
AG
EN
T]
as
Aut
horiz
ed S
igne
r Ex
hibi
t A
—
Add
ress
es o
f the
Uni
vers
ity a
nd th
e Es
crow
Age
nt
Exhi
bit B
—
D
escr
iptio
n of
the
Ref
unde
d B
onds
Ex
hibi
t C
—
Sche
dule
of D
ebt S
ervi
ce o
n R
efun
ded
Bon
ds
Exhi
bit D
—
D
escr
iptio
n of
Beg
inni
ng C
ash
Dep
osit
(if a
ny) a
nd E
scro
wed
Sec
uriti
es
Exhi
bit E
—
Es
crow
Fun
d C
ash
Flow
A
ppen
dix
A
—
Not
ice
of R
edem
ptio
n A
ppen
dix
B
—
Not
ice
of D
efea
sanc
e A
ppen
dix
C
—
Fee
Sche
dule
B-32
A
-A-1
EX
HIB
IT A
A
ddre
sses
of t
he U
nive
rsity
and
Esc
row
Age
nt
Uni
vers
ity:
W
este
rn W
ashi
ngto
n U
nive
rsity
51
6 H
igh
Stre
et, O
ld M
ain
405
Bel
lingh
am, W
ashi
ngto
n 98
225
Atte
ntio
n: V
ice
Pres
iden
t, B
usin
ess a
nd F
inan
cial
Aff
airs
Escr
ow A
gent
: __
____
____
____
____
___
A
ttent
ion:
A
-B-1
EX
HIB
IT B
Des
crip
tion
of th
e R
efun
ded
Bon
ds
W
este
rn W
ashi
ngto
n U
nive
rsity
St
uden
t Rec
reat
ion
Fee
Rev
enue
Bon
ds, S
erie
s 200
2
Mat
urity
Yea
rs
(May
1)
Prin
cipa
l A
mou
nts
Inte
rest
R
ates
2013
$
670
,000
4.
40%
20
14
700,
000
4.50
20
15
725,
000
5.00
20
16
765,
000
5.00
20
17
805,
000
5.00
20
18
845,
000
5.00
20
19
885,
000
5.00
20
20
930,
000
5.00
20
21
975,
000
5.00
20
22
1,02
0,00
0 5.
00
2023
1,
075,
000
5.00
20
27
4,87
0,00
0 5.
00
2033
9,
330,
000
5.00
B-33
A
-C-1
EX
HIB
IT C
Sc
hedu
le o
f Deb
t Ser
vice
on
the
Ref
unde
d B
onds
D
ate
In
tere
st
Prin
cipa
l/ R
edem
ptio
n Pr
ice
To
tal
$
$
$
$
$
$
A
-D-1
EX
HIB
IT D
E
scro
w D
epos
it I.
Cas
h $
____
___
II.
Oth
er O
blig
atio
ns
Des
crip
tion
M
atur
ity D
ate
Prin
cipa
l A
mou
nt
In
tere
st R
ate
To
tal C
ost
$
%
$
$
$
III.
Cos
ts o
f Iss
uanc
e
B-34
A
-E-1
EX
HIB
IT E
E
scro
w F
und
Cas
h Fl
ow
Dat
e Es
crow
Sec
uriti
es
Prin
cipa
l Es
crow
Sec
uriti
es
Inte
rest
C
ash
Rec
eipt
s C
ash
Dis
burs
emen
t Ca
sh
Bala
nce
$
$
$
$
Page
1—
App
endi
x A
APP
EN
DIX
A
NO
TIC
E O
F R
ED
EM
PTIO
N*
W
este
rn W
ashi
ngto
n U
nive
rsity
St
uden
t Rec
reat
ion
Fee
Rev
enue
Bon
ds, S
erie
s 200
2
NO
TIC
E IS
HER
EBY
GIV
EN t
hat
Wes
tern
Was
hing
ton
Uni
vers
ity h
as c
alle
d fo
r re
dem
ptio
n on
May
1, 2
012,
of
its o
utst
andi
ng S
tude
nt R
ecre
atio
n Fe
e R
even
ue B
onds
, Ser
ies
2002
(the
“R
efun
ded
Bon
ds”)
.
The
Ref
unde
d B
onds
will
be
rede
emed
at a
pric
e of
one
hun
dred
per
cent
(100
%) o
f the
ir pr
inci
pal a
mou
nt, p
lus
inte
rest
acc
rued
to M
ay 1
, 201
2. T
he re
dem
ptio
n pr
ice
of th
e R
efun
ded
Bon
ds is
pay
able
on
pres
enta
tion
and
surr
ende
r of t
he R
efun
ded
Bon
ds a
t the
off
ice
of:
Th
e B
ank
of N
ew Y
ork
Mel
lon
Wor
ldw
ide
Secu
ritie
s Pro
cess
ing
20
01 B
ryan
Stre
et, 9
th F
loor
D
alla
s, TX
752
01
-o
r-
Wel
ls F
argo
Ban
k, N
atio
nal A
ssoc
iatio
n C
orpo
rate
Tru
st D
epar
tmen
t 14
th F
loor
99
9 Th
ird A
venu
e Se
attle
, WA
981
04
In
tere
st o
n al
l R
efun
ded
Bon
ds o
r po
rtion
s th
ereo
f w
hich
are
red
eem
ed s
hall
ceas
e to
ac
crue
on
May
1, 2
012.
The
follo
win
g R
efun
ded
Bon
ds a
re b
eing
rede
emed
:
Mat
urity
Yea
rs
(May
1)
Prin
cipa
l A
mou
nts
Inte
rest
R
ates
C
USI
P N
os.
2013
$
670
,000
4.
40%
95
9878
HM
4 20
14
700,
000
4.50
95
9878
HN
2 20
15
725,
000
5.00
95
9878
HY
8 20
16
765,
000
5.00
95
9878
HZ5
20
17
805,
000
5.00
95
9878
JA8
2018
84
5,00
0 5.
00
9598
78JB
6 20
19
885,
000
5.00
95
9878
JC4
2020
93
0,00
0 5.
00
9598
78JD
2 20
21
975,
000
5.00
95
9878
JE0
2022
1,
020,
000
5.00
95
9878
JF7
2023
1,
075,
000
5.00
95
9878
JG5
2027
4,
870,
000
5.00
95
9878
JK6
2033
9,
330,
000
5.00
95
9878
JL4
*
This
not
ice
shal
l be
giv
en n
ot m
ore
than
60
nor
less
than
30
days
prio
r to
May
1, 2
012
by f
irst c
lass
mai
l to
each
re
gist
ered
ow
ner
of t
he R
efun
ded
Bon
ds.
In
addi
tion
notic
e sh
all
be m
aile
d at
lea
st 3
5 da
ys p
rior
to M
ay 1
, 20
12 t
o Th
e D
epos
itory
Tru
st C
ompa
ny, N
ew Y
ork,
New
Yor
k; G
oldm
an S
achs
, New
Yor
k, N
ew Y
ork,
Sie
bert
Bra
nfor
d Sh
ank
& C
o. L
LC,
New
Yor
k, N
ew Y
ork;
UB
S A
G,
New
Yor
k, N
ew Y
ork,
Nat
iona
l Fi
nanc
ial
Gua
rant
y In
sura
nce
Com
pany
(fo
rmer
ly M
BIA
In
sura
nce
Cor
pora
tion)
, New
Yor
k, N
ew Y
ork,
Moo
dy’s
Inve
stor
s Se
rvic
e; F
itch
Inve
stor
Ser
vice
s an
d St
anda
rd &
Poo
r’s;
and
to
the
Mun
icip
al S
ecur
ities
Rul
emak
ing
Boa
rd.
B-35
Page
2—
App
endi
x A
By
Ord
er o
f Wes
tern
Was
hing
ton
Uni
vers
ity
The
Ban
k of
New
Yor
k M
ello
n, a
s Pay
ing
Age
nt
Dat
ed:
____
____
____
____
____
____
With
hold
ing
of tw
enty
eig
ht (
28)
perc
ent o
f gr
oss
rede
mpt
ion
proc
eeds
of
any
paym
ent
mad
e w
ithin
th
e U
nite
d St
ates
m
ay
be
requ
ired
by
the
Jobs
an
d G
row
th
Tax
Rel
ief
Rec
onci
liatio
n A
ct o
f 20
03 (
the
“Act
”) u
nles
s th
e Pa
ying
Age
nt h
as t
he c
orre
ct t
axpa
yer
iden
tific
atio
n nu
mbe
r (s
ocia
l se
curit
y or
em
ploy
er
iden
tific
atio
n nu
mbe
r) or
ex
empt
ion
certi
ficat
e of
the
paye
e. P
leas
e fu
rnis
h a
prop
erly
com
plet
ed F
orm
W-9
or e
xem
ptio
n ce
rtific
ate
or e
quiv
alen
t whe
n pr
esen
ting
your
Bon
ds.
App
endi
x B
APP
EN
DIX
B
N
otic
e of
Def
easa
nce*
W
este
rn W
ashi
ngto
n U
nive
rsity
St
uden
t Rec
reat
ion
Fee
Rev
enue
Bon
ds, S
erie
s 200
2
NO
TIC
E IS
HER
EBY
GIV
EN t
o th
e ow
ners
of
that
por
tion
of t
he a
bove
-cap
tione
d B
onds
with
res
pect
to w
hich
, pur
suan
t to
an E
scro
w A
gree
men
t dat
ed _
____
____
____
_, 2
012,
by
an
d be
twee
n W
este
rn
Was
hing
ton
Uni
vers
ity
(the
“Uni
vers
ity”)
an
d __
____
____
____
____
___
(the
“Esc
row
Age
nt”)
, the
Uni
vers
ity h
as d
epos
ited
into
an
escr
ow
acco
unt,
held
by
the
Escr
ow A
gent
, cas
h an
d no
n-ca
llabl
e di
rect
obl
igat
ions
of t
he U
nite
d St
ates
of
Am
eric
a, th
e pr
inci
pal o
f an
d in
tere
st o
n w
hich
, whe
n du
e, w
ill p
rovi
de m
oney
suf
ficie
nt to
pa
y ea
ch y
ear,
to a
nd in
clud
ing
the
resp
ectiv
e m
atur
ity o
r re
dem
ptio
n da
tes
of s
uch
Bon
ds s
o pr
ovid
ed fo
r, th
e pr
inci
pal t
here
of a
nd in
tere
st th
ereo
n (th
e “D
efea
sed
Bon
ds”)
. Su
ch D
efea
sed
Bon
ds a
re th
eref
ore
deem
ed to
be
no lo
nger
out
stan
ding
pur
suan
t to
the
prov
isio
ns o
f Res
olut
ion
No.
200
2-01
of t
he U
nive
rsity
, aut
horiz
ing
the
issu
ance
of t
he D
efea
sed
Bon
ds, b
ut w
ill b
e pa
id
by a
pplic
atio
n of
the
asse
ts o
f suc
h es
crow
acc
ount
.
The
Def
ease
d B
onds
are
des
crib
ed a
s fol
low
s:
Stud
ent R
ecre
atio
n Fe
e R
even
ue B
onds
, Ser
ies 2
002
(Dat
ed:
Febr
uary
1, 2
002)
M
atur
ity Y
ears
(M
ay 1
) D
efea
sed
Am
ount
s In
tere
st
Rat
es
CU
SIP
Nos
. C
all D
ate
(100
%)
2013
$
670
,000
4.
40%
95
9878
HM
4 05
/01/
2012
20
14
700,
000
4.50
95
9878
HN
2 05
/01/
2012
20
15
725,
000
5.00
95
9878
HY
8 05
/01/
2012
20
16
765,
000
5.00
95
9878
HZ5
05
/01/
2012
20
17
805,
000
5.00
95
9878
JA8
05/0
1/20
12
2018
84
5,00
0 5.
00
9598
78JB
6 05
/01/
2012
20
19
885,
000
5.00
95
9878
JC4
05/0
1/20
12
2020
93
0,00
0 5.
00
9598
78JD
2 05
/01/
2012
20
21
975,
000
5.00
95
9878
JE0
05/0
1/20
12
2022
1,
020,
000
5.00
95
9878
JF7
05/0
1/20
12
2023
1,
075,
000
5.00
95
9878
JG5
05/0
1/20
12
2027
4,
870,
000
5.00
95
9878
JK6
05/0
1/20
12
2033
9,
330,
000
5.00
95
9878
JL4
05/0
1/20
12
*
This
not
ice
shal
l be
give
n im
med
iate
ly b
y fir
st c
lass
mai
l to
each
reg
iste
red
owne
r of
the
Def
ease
d B
onds
. In
ad
ditio
n, n
otic
e sh
all b
e m
aile
d to
: The
Dep
osito
ry T
rust
Com
pany
of
New
Yor
k, N
ew Y
ork;
The
Ban
k of
New
Y
ork
Mel
lon,
as
Fisc
al A
gent
; M
oody
’s I
nves
tors
Ser
vice
; St
anda
rd &
Poo
r’s
Rat
ings
Ser
vice
s; F
itch
Ratin
gs;
Mer
rill L
ynch
& C
o., M
BIA
Insu
ranc
e C
orpo
ratio
n an
d to
the
MSR
B.
B-36
App
endi
x B
Info
rmat
ion
for I
ndiv
idua
l Reg
iste
red
Ow
ner
Th
e ad
dres
see
of th
is n
otic
e is
the
regi
ster
ed o
wne
r of B
ond
Cer
tific
ate
No.
___
__ o
f the
D
efea
sed
Bon
ds d
escr
ibed
abo
ve, w
hich
cer
tific
ate
is in
the
prin
cipa
l am
ount
of
$___
____
__.
All
of w
hich
has
bee
n de
feas
ed a
s des
crib
ed a
bove
.
APP
EN
DIX
C
Fee
Sche
dule
Escr
ow A
gent
Fee
: Se
e A
ttach
ed
B-37
This page left blank intentionally
FIN
AN
CIA
L S
TA
TE
ME
NT
S
AN
D
R
EQ
UIR
ED
SU
PP
LE
ME
NT
AL
IN
FO
RM
AT
ION
Ta
ble
of C
onte
nts
Pre
sid
ent’
s L
ette
r of
Tra
nsm
itta
l...
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
.3
Boa
rd o
f Tru
stee
s a
nd
Ad
min
istr
ati
ve O
ffic
ers.
....
....
....
....
....
....
....
....
....
....
....
....
....
....
..4
Ma
na
gem
ent’
s D
iscu
ssio
n a
nd
An
aly
sis
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
.5
Ind
epen
den
t A
ud
itor
s’R
epo
rt..
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
..13
Fin
an
cia
l Sta
tem
ents
:
Sta
tem
ents
of N
et A
sset
s (U
niv
ersi
ty).
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
...1
5
Sta
tem
ents
of F
ina
nci
al P
osit
ion
(Fou
nd
ati
on
)..
....
....
....
....
....
....
....
....
....
....
....
....
....
...1
6
Sta
tem
ents
of R
even
ues
, Exp
ense
s a
nd
Ch
an
ges
in N
et A
sset
s(U
niv
ersi
ty).
....
....
....
.17
Sta
tem
ent
of A
ctiv
itie
s a
nd
Ch
an
ges
in N
et A
sset
s 20
11(F
oun
da
tio
n)
....
....
....
....
....
..18
Sta
tem
ent
of A
ctiv
itie
s a
nd
Ch
an
ges
in N
et A
sset
s 20
10 (
Fou
nd
ati
on).
....
....
....
....
....
.19
Sta
tem
ents
of C
ash
Flo
ws
(Un
iver
sity
)...
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
..20
Not
es t
o th
e F
ina
nci
al S
tate
men
ts..
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
....
...2
2
This
pag
e in
tent
iona
lly le
ft b
lank
C-1
APPENDIX C Audited Financial Statements of the University (Fiscal Year Ended June 30, 2011)
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
PR
ESI
DE
NT
’S L
ET
TE
R O
F T
RA
NSM
ITT
AL
JJu
ne 3
0, 2
011 a
nd 2
010
3
Nov
embe
r 8,
201
1
Den
nis
Mad
sen,
Cha
irB
oard
of T
rust
ees
Wes
tern
Was
hing
ton
Uni
vers
ity
Bel
lingh
am, W
A 9
8225
Dea
r M
r.M
adse
n:
We
are
plea
sed
to s
ubm
it th
e A
nnua
l Fin
anci
al R
epor
t of W
este
rn W
ashi
ngto
n U
nive
rsit
y. T
he a
ccou
nts
of th
e U
nive
rsit
y ar
e m
aint
aine
d in
acc
orda
nce
wit
h po
licie
s an
d re
gula
tion
s es
tabl
ishe
d by
Was
hing
ton
Stat
e an
d it
s O
ffic
e of
Fin
anci
alM
anag
emen
t. T
his
repo
rt h
as b
een
prep
ared
in a
ccor
danc
e w
ith
gene
rally
acc
epte
d ac
coun
ting
pri
ncip
les
and
follo
win
g th
e gu
idan
ce o
f the
Gov
ernm
enta
l Acc
ount
ing
Stan
dard
s B
oard
.
Man
agem
ent a
ssum
es fu
ll re
spon
sibi
lity
for
the
com
plet
enes
s an
d re
liabi
lity
of th
e in
form
atio
n co
ntai
ned
in th
is r
epor
t, ba
sed
upon
a c
ompr
ehen
sive
fram
ewor
k of
inte
rnal
con
trol
that
it h
as e
stab
lishe
d fo
r th
is p
urpo
se.
Bec
ause
the
cost
of
inte
rnal
con
trol
sho
uld
not e
xcee
d an
tici
pate
d be
nefit
s, th
e ob
ject
ive
is to
pro
vide
rea
sona
ble,
rat
her
than
abs
olut
e,
assu
ranc
e th
at th
e fin
anci
al s
tate
men
ts a
re fr
ee o
f any
mat
eria
l mis
stat
emen
ts.
The
Was
hing
ton
Stat
e A
udit
ors’
Off
ice
has
issu
ed a
n un
qual
ifie
d (c
lean
) opi
nion
on
the
Wes
tern
Was
hing
ton
Uni
vers
ity
finan
cial
sta
tem
ents
for
the
year
end
ed J
une
30, 2
011.
Thi
s op
inio
n is
incl
uded
in th
e in
depe
nden
t aud
itor
’s r
epor
t.
Man
agem
ent’s
dis
cuss
ion
and
anal
ysis
, loc
ated
at t
he fr
ont o
f the
fina
ncia
l sec
tion
of t
his
repo
rt, p
rovi
des
a na
rrat
ive
intr
oduc
tion
, ove
rvie
w, a
nd a
naly
sis
of th
e ba
sic
finan
cial
sta
tem
ents
. W
este
rn W
ashi
ngto
n U
nive
rsit
y is
rec
ogni
zed
nati
onw
ide
as a
pre
mie
r pu
blic
com
preh
ensi
ve u
nive
rsit
y. W
este
rn W
ashi
ngto
n U
nive
rsit
y is
the
high
est-
rank
ing
publ
ic,
mas
ter’
s-gr
anti
ng u
nive
rsit
y in
the
Paci
fic N
orth
wes
t, ac
cord
ing
to th
e 20
11 U
.S. N
ews
& W
orld
Rep
ort c
olle
ge r
anki
ngs.
W
este
rn’s
nat
iona
l aca
dem
ic r
eput
atio
n, e
xcel
lent
facu
lty,
as
wel
l as
its
prim
e lo
cati
on, m
ake
it a
n in
stit
utio
n “i
n de
man
d”,
fact
ors
whi
ch w
ill c
onti
nue
to h
elp
it w
eath
er th
e cu
rren
t eco
nom
ic c
halle
nges
.
Sinc
erel
y,
Bru
ce S
hepa
rdPr
esid
ent
R
icha
rd V
an D
en H
ulV
ice
Pres
iden
t for
Bus
ines
s an
dFi
nanc
ial A
ffai
rs
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
BO
AR
D O
F T
RU
STE
ES
AN
D A
DM
INIS
TR
AT
IVE
OF
FIC
ER
S Ju
ne 3
0, 2
011
and
2010
4BO
AR
D O
F T
RU
ST
EE
S
Den
nis
Mad
sen,
Cha
irR
alph
Mun
ro, V
ice
Cha
irB
etti
Fuj
ikad
o, S
ecre
tary
Ram
iro
Esp
inoz
a, S
tude
nt T
rust
eeK
aren
Lee
Phil
Shar
pe, J
r.D
ick
Thom
pson
Pegg
y Zo
ro
AD
MIN
IST
RA
TIV
E O
FF
ICE
RS
Bru
ce S
hepa
rd, P
resi
dent
Cat
heri
ne R
iord
an,P
rovo
st a
nd V
ice
Pres
iden
t for
Aca
dem
ic A
ffai
rsE
ileen
V. C
ough
lin, V
ice
Pres
iden
t for
Stu
dent
Aff
airs
and
Aca
dem
ic S
uppo
rt S
ervi
ces
Ric
hard
Van
Den
Hul
,Vic
e Pr
esid
ent f
or B
usin
ess
and
Fina
ncia
l Aff
airs
Stev
e Sw
an,V
ice
Pres
iden
t for
Uni
vers
ity
Rel
atio
nsSt
epha
nie
Bow
ers,
Vic
e Pr
esid
ent f
or U
nive
rsit
y A
dvan
cem
ent
Tere
sa M
rocz
kiew
icz,
Int
erim
Dir
ecto
r, F
inan
cial
Ser
vice
sSa
lly M
cKec
hnie
, Int
erim
Dir
ecto
r, B
usin
ess
Serv
ices
Mic
hael
Ulr
ich,
Inte
rim
Dir
ecto
r,A
ccou
ntin
gSe
rvic
es
C-2
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed–
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t5
Ove
rvie
w o
f th
e F
inan
cial
Sta
tem
ents
an
d F
inan
cial
An
alys
is
The
follo
win
g di
scus
sion
and
ana
lysi
s pr
ovid
es a
n ov
ervi
ew o
f the
fina
ncia
l pos
itio
n an
d ac
tivi
ties
of W
este
rn W
ashi
ngto
n U
nive
rsit
y (t
he U
nive
rsit
y) f
or t
he y
ears
end
ed J
une
30,
2011
and
201
0. T
his
disc
ussi
on h
as b
een
prep
ared
by
man
agem
ent
and
shou
ld b
e re
adin
con
junc
tion
wit
h th
e fin
anci
al s
tate
men
ts a
nd a
ccom
pany
ing
note
s w
hich
fol
low
thi
s se
ctio
n.
Rep
orti
ng
En
tity
The
Uni
vers
ity
is a
com
preh
ensi
ve, d
egre
e gr
anti
ng p
ublic
uni
vers
ity
in th
e St
ate
of W
ashi
ngto
n. I
t is
gove
rned
by
a B
oard
of
eig
ht T
rust
ees
appo
inte
d by
the
Gov
erno
r. O
ne o
f the
mem
bers
is a
full-
tim
e st
uden
t of t
he U
nive
rsit
y. T
he U
nive
rsit
y w
as e
stab
lishe
d in
189
3 an
d cu
rren
tly
has
appr
oxim
atel
y 15
,000
full-
tim
e an
d pa
rt-t
ime
stud
ents
.
Loca
ted
on t
he s
hore
s of
Bel
lingh
am B
ay w
ith
Mou
nt B
aker
as
its
back
drop
, Bel
lingh
am is
the
last
maj
or c
ity
befo
re t
he
Was
hing
ton
coas
tlin
e m
eets
the
Can
adia
n bo
rder
.Th
e C
ity
of B
ellin
gham
, whi
ch s
erve
s as
the
cou
nty
seat
of
Wha
tcom
C
ount
y, i
s at
the
cen
ter
of a
uni
quel
y pi
ctur
esqu
e ar
ea o
ffer
ing
a ri
ch v
arie
ty o
f re
crea
tion
al,
cult
ural
, ed
ucat
iona
l an
d ec
onom
ic a
ctiv
itie
s.
Usi
ng
the
Fin
anci
al S
tate
men
tsTh
e U
nive
rsity
’s fi
nanc
ial r
epor
ts in
clud
e th
e St
atem
ents
of N
et A
sset
s, t
he S
tate
men
ts o
f Rev
enue
s, E
xpen
ses
and
Cha
nges
in
Net
Ass
ets,
the
Sta
tem
ents
of
Cash
Flo
ws
and
the
Not
es t
o th
e Fi
nanc
ial
Stat
emen
ts.
The
se f
inan
cial
sta
tem
ents
are
pr
epar
ed i
n ac
cord
ance
wit
h G
over
nmen
tal A
ccou
ntin
g St
anda
rds
Boa
rd (
GA
SB)
prin
cipl
es, w
hich
est
ablis
h st
anda
rds
for
exte
rnal
fina
ncia
l rep
ortin
g fo
r pu
blic
col
lege
s an
d un
iver
sitie
s. G
ASB
sta
ndar
ds r
equi
re th
at fi
nanc
ial s
tate
men
ts in
clud
e al
l fu
nds.
Sta
tem
ents
of
Net
Ass
ets
The
Stat
emen
ts o
f Net
Ass
ets
pres
ent
the
finan
cial
con
diti
on o
f the
Uni
vers
ity
at t
he e
nd o
f the
last
thr
ee f
isca
l yea
rs a
nd
repo
rt a
ll as
sets
and
liab
iliti
es o
f the
Uni
vers
ity.
A s
umm
ariz
ed c
ompa
riso
n of
the
Uni
vers
ity’
s as
sets
, lia
bilit
ies
and
net a
sset
s as
of J
une
30, 2
011,
201
0an
d 20
09, f
ollo
ws:
20
112
010
20
09
Ass
ets
Curr
ent a
sset
s61
,660
$81
,794
$80
,418
$N
oncu
rren
t ass
ets
52,9
5834
,627
37,4
33Ca
pita
l ass
ets,
net
435,
638
413,
200
384,
343
Tota
l ass
ets
550
,256
529,
621
502,
194
Lia
bil
itie
sCu
rren
t lia
bilit
ies
31,3
2336
,046
29,8
81N
oncu
rren
t lia
bilit
ies
82,0
2083
,786
86,0
16To
tal l
iabi
litie
s11
3,34
311
9,83
211
5,89
7
To
tal n
et a
sset
s43
6,91
3$
409,
789
$38
6,29
7$
(Dol
lars
in th
ousa
nds)
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed –
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t6A
sset
sC
urre
nt a
sset
s co
nsis
t pr
imar
ily o
f ca
shan
d ca
sh e
quiv
alen
ts,
shor
t-te
rmin
vest
men
ts,
fund
s he
ld w
ith
the
Stat
e Tr
easu
rer,
and
acc
ount
s re
ceiv
able
fro
m s
tude
nts.
Th
e $2
0.1
mill
ion
(-24
.6%
) de
crea
se i
n to
tal
curr
ent
asse
ts d
urin
g fis
cal 2
011
com
pare
d to
fis
cal 2
010
is p
rim
arily
due
to
a re
duct
ion
in c
ash
and
cash
equ
ival
ents
of
$16.
2 m
illio
n, u
sed
in
fisca
l 201
1 to
pur
chas
e in
vest
men
ts.
Cur
rent
ass
ets
incr
ease
d by
a n
et $
1.4
mill
ion
(1.7
%)
duri
ng fi
scal
201
0 co
mpa
red
to
fisca
l 200
9 du
e to
incr
ease
d ho
ldin
gs o
f cas
h an
d ca
sh e
quiv
alen
ts a
nd a
n in
crea
se in
fund
s he
ld b
y th
e O
ffic
e of
the
Stat
e Tr
easu
rer.
Non
curr
ent
asse
ts (
excl
udin
g ca
pita
l ass
ets)
incr
ease
d $1
8.3
mill
ion
(52.
9%)
in f
isca
l 201
1 ov
er f
isca
l 201
0 pr
imar
ily d
ue
to t
he in
crea
se in
long
-ter
m r
estr
icte
d an
d un
rest
rict
ed in
vest
men
ts o
ffse
t by
dec
reas
es in
cas
h an
d ca
sh e
quiv
alen
ts a
nd
the
amou
nt d
ue f
rom
Sta
te T
reas
urer
. Th
e in
crea
se i
n lo
ng-t
erm
res
tric
ted
and
unre
stri
cted
inv
estm
ents
was
due
to
purc
hase
s of
U.S
. Tre
asur
y an
d A
genc
y Se
curi
ties
.The
cha
nge
in t
he a
mou
nt d
ue fr
om t
he S
tate
Tre
asur
er is
att
ribu
tabl
e to
an
incr
ease
in c
apit
al e
xpen
ditu
res
that
occ
urre
d at
the
end
of fi
scal
201
0 w
ith
cash
req
uest
ed in
fisc
al 2
011.
Res
tric
ted
cash
and
cas
h eq
uiva
lent
s de
crea
sed
$3.8
mill
ion
(-54
.6%
)in
fis
cal
2011
pri
mar
ily d
ue t
o sp
endi
ng $
4.0
mill
ion
of t
he
rem
aini
ng a
mou
nt o
f th
e $1
4.3
mill
ion
in H
ousi
ng a
nd D
inin
g Sy
stem
200
9 re
venu
e bo
nd p
roce
eds.
Non
curr
ent
asse
ts
(exc
ludi
ng c
apit
al a
sset
s) d
ecre
ased
$2.
8 m
illio
n (-
7.5%
) co
mpa
ring
fis
cal 2
010
to f
isca
l 200
9, p
rim
arily
due
to
spen
ding
$8
.3 m
illio
n of
the
$14
.3 m
illio
n in
Hou
sing
and
Din
ing
Syst
em r
even
ue b
onds
iss
ued
in 2
009,
off
set
by a
$5.
1 m
illio
n (1
86.2
%)
incr
ease
in th
e am
ount
s du
e fr
om th
e St
ate
Trea
sure
r to
cov
er e
xpen
ditu
res
on th
e M
iller
Hal
l ren
ovat
ion.
Gro
wth
in n
et a
sset
s ov
er t
he la
st th
ree
fisca
l yea
rs is
due
to th
e co
ntin
uati
on o
f the
Uni
vers
ity’
s ca
pita
l pro
gram
. C
apit
al
asse
ts g
rew
in fi
scal
201
1 by
$22
.4m
illio
n (5
.4%
) an
d $2
8.9
mill
ion
(7.5
%)
com
pari
ng fi
scal
201
0 to
fisc
al 2
009,
pri
mar
ily
due
to th
e ca
pita
lizat
ion
of w
ork
perf
orm
ed o
n th
eM
iller
Hal
l ren
ovat
ion
and
the
Buc
hana
n To
wer
s re
mod
el.
Lia
bil
itie
sTh
e ex
cess
of c
urre
nt a
sset
s ov
er c
urre
nt li
abili
ties
of
$30.
3 m
illio
n in
fisc
al 2
011
and
$45.
7 m
illio
n in
fisc
al 2
010
refle
cts
the
cont
inui
ng a
bilit
y of
the
Uni
vers
ity
to m
eet
its
shor
t-te
rmob
ligat
ions
wit
h liq
uid
or e
asily
liqu
idat
ed a
sset
s. C
urre
nt
liabi
litie
s de
crea
sed
$4.7
mill
ion
(-13
.1%
) co
mpa
ring
fis
cal 2
011
to f
isca
l 201
0 du
e to
the
pay
men
t of
cap
ital
exp
endi
ture
in
voic
es r
ecor
ded
at f
isca
l 201
0 ye
ar e
nd. T
he c
urre
nt li
abili
ties
incr
ease
of
$6.2
mill
ion
(20.
6%)
whe
n co
mpa
ring
fis
cal
2010
to
fisca
l 20
09 i
s re
late
d to
hig
her
invo
ices
at
year
end
in
cons
truc
tion
pro
ject
act
ivit
y, i
nclu
ding
the
Mill
er H
all
reno
vati
on (
$3.2
mill
ion)
and
the
Buc
hana
n To
wer
s re
nova
tion
($1
.8 m
illio
n).
Def
erre
d re
venu
es i
ncre
ased
$82
6 th
ousa
nd (
15.3
%)
whe
n co
mpa
ring
fis
cal
2011
to
fisc
al 2
010
due
to a
14.0
%in
crea
se i
nsu
mm
er s
essi
on u
nder
grad
uate
tu
itio
n an
d an
enr
ollm
ent
incr
ease
of
over
2.0
%. D
efer
red
reve
nues
incr
ease
d $6
98 t
hous
and
(14.
8 %
) co
mpa
ring
fis
cal
2010
to
fisca
l 20
09 d
ue t
o an
inc
reas
e of
14.
0%in
und
ergr
adua
te s
umm
er t
uiti
on r
ates
, an
inc
reas
e in
sum
mer
201
0 en
rollm
ent
of o
ver
1,00
0 st
uden
ts a
nd a
n in
crea
se in
sum
mer
201
0 fa
cult
y le
dtr
avel
cou
rses
tha
t ca
rry
high
er f
ees.
The
cu
rren
t po
rtio
n of
bon
ds a
nd n
otes
pay
able
inc
reas
ed s
light
ly b
y $1
50 t
hous
and
(4.3
%)
whe
n co
mpa
ring
fis
cal
2011
to
fisca
l 20
10 d
ue t
o th
e ad
diti
on o
f tw
o St
ate
Cer
tific
ates
of
Part
icip
atio
n to
fun
d eq
uipm
ent
purc
hase
s in
Ath
leti
cs.
The
curr
ent
port
ion
of b
onds
and
not
es p
ayab
le i
ncre
ased
$41
1 th
ousa
nd(1
3.4%
)co
mpa
ring
fisc
al 2
010
to f
isca
l 20
09 a
s pr
inci
pal p
aym
ents
bec
ame
due
on th
e 20
09 H
ousi
ng a
nd D
inin
g bo
nd is
sue
duri
ng fi
scal
201
0.
Long
-ter
mlia
bilit
ies
decr
ease
d $1
.8m
illio
n (-
2.1%
) w
hen
com
pari
ng f
isca
l 20
11 t
o fis
cal
2010
due
to
the
reti
rem
ent
of
$3.6
mill
ion
in b
onds
and
not
es p
ayab
le. T
he $
3.6
mill
ion
decr
ease
isof
fset
by
an in
crea
se o
f $1.
3 m
illio
nto
the
unfu
nded
ne
t pe
nsio
n ob
ligat
ion
to c
erta
in s
tate
em
ploy
ees
base
d on
the
est
imat
ed S
tate
Act
uari
al v
alua
tion
of
the
plan
, com
bine
d w
ith
the
addi
tion
of
$450
tho
usan
d in
new
not
espa
yabl
eto
fun
d eq
uipm
ent
in t
he A
thle
tic
Dep
artm
ent.
Long
-ter
mlia
bilit
ies
decr
ease
d by
$2.
2 m
illio
n(-
2.6%
) co
mpa
ring
fisc
al 2
010
to f
isca
l 200
9 du
e to
the
ret
irem
ent
of $
3.2
mill
ion
in
bond
s an
d no
tes
paya
ble,
off
set b
y an
incr
ease
of $
923
thou
sand
to th
e un
fund
ed n
et p
ensi
on o
blig
atio
n.
Net
Ass
ets
The
diff
eren
ce b
etw
een
tota
l ass
ets
and
tota
l lia
bilit
ies
is n
et a
sset
s, o
r eq
uity
. Th
e ch
ange
in n
et a
sset
s m
easu
res
whe
ther
the
over
all
finan
cial
con
diti
on h
as i
mpr
oved
or
dete
rior
ated
dur
i ng
the
year
. N
et a
sset
s ar
e re
port
ed i
n th
e fo
llow
ing
cate
gori
es:
Inve
sted
in
Capi
tal
Ass
ets
(net
of
rela
ted
debt
)–
The
Uni
vers
ity’
s to
tal
inve
stm
ents
in
prop
erty
, pla
nt e
quip
men
t, an
d in
fras
truc
ture
, net
of a
ccum
ulat
ed d
epre
ciat
ion
and
outs
tand
ing
debt
obl
igat
ions
rel
ated
to th
ose
capi
tal a
sset
s.
C-3
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed–
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t7
Res
tric
ted
Net
Ass
ets:
�N
onex
pend
able
net
ass
ets
cons
ists
of f
unds
on
whi
ch th
e do
nor
or o
ther
ext
erna
l par
ty h
as im
pose
d th
e re
stri
ctio
n th
at th
e co
rpus
is n
ot a
vaila
ble
for
expe
ndit
ures
but
for
inve
stm
ent p
urpo
ses
only
.
�E
xpen
dabl
e ne
t as
sets
are
res
ourc
es w
hich
the
Uni
vers
ity
is l
egal
ly o
r co
ntra
ctua
lly o
blig
ated
to
spen
d in
ac
cord
ance
wit
h ti
me
or p
urpo
se r
estr
icti
ons
plac
ed u
pon
them
by
dono
rs o
r ot
her
exte
rnal
par
ties
.
Unr
estr
icte
d N
et A
sset
s–
All
rem
aini
ng f
unds
ava
ilabl
e to
the
inst
itut
ion
for
any
purp
ose,
alt
houg
h th
ese
net
asse
ts a
re
ofte
n in
tern
ally
des
igna
ted
for
spec
ific
purp
oses
.
The
Uni
vers
ity’
s ne
t ass
ets
as o
f Jun
e 30
, 201
1, 2
010
and
2009
are
sum
mar
ized
as
follo
ws:
20
112
010
20
09
Net
Ass
ets
Inve
sted
in c
apit
al a
sset
s, n
et o
f rel
ated
deb
t35
7,8
15$
336,
630
$31
2,26
3$
Res
tric
ted:
Non
expe
ndab
le4,
629
4,62
94,
149
Expe
ndab
le24
,391
26,3
2123
,683
Unr
estr
icte
d50
,07
842
,20
946
,20
2To
tal n
et a
sset
s43
6,91
3$
409,
789
$38
6,29
7$
(Dol
lars
in th
ousa
nds)
Inve
sted
in c
apit
al a
sset
s, n
et o
f rel
ated
deb
t inc
reas
ed $
21.2
mill
ion
(6.3
%) w
hen
com
pari
ng fi
scal
201
1 to
fisc
al 2
010
due
to in
crea
ses
in c
onst
ruct
ion
in p
rogr
ess
for
the
Mill
er H
all a
nd B
ucha
nan
Tow
ers
reno
vati
ons,
alo
ng w
ith
a re
duct
ion
in
long
-ter
m d
ebt
from
pri
ncip
al p
aym
ents
. In
vest
ed i
n ca
pita
l as
sets
, ne
t of
rel
ated
deb
t in
crea
sed
$24.
4 m
illio
n (7
.8%
) co
mpa
ring
fis
cal
2010
to
fisca
l 20
09 p
rim
arily
due
to
the
incr
ease
in
cons
truc
tion
in p
rogr
ess
for
the
Mill
er H
all
and
Buc
hana
n To
wer
s re
nova
tion
s, o
ffse
t by
the
chan
ge in
long
-ter
m d
ebt.
Res
tric
ted
none
xpen
dabl
e ne
t as
sets
incl
ude
dona
tion
s an
d m
atch
ing
Stat
e co
ntri
buti
ons
for
the
purp
ose
of e
stab
lishi
ng
dist
ingu
ishe
d pr
ofes
sors
hips
and
gra
duat
e fe
llow
ship
s. W
hen
com
pari
ng fi
scal
201
1 to
fisc
al 2
010,
ther
e w
as n
o ch
ange
to
rest
rict
ed n
onex
pend
able
net
ass
ets
as n
o ne
w a
ddit
ions
to
endo
wm
ents
wer
e re
ceiv
ed. D
urin
g fis
cal 2
010,
$50
tho
usan
d w
as r
ecei
ved
to e
stab
lish
a ne
w g
radu
ate
fello
wsh
ip c
ompa
red
to t
he r
ecei
pt o
f $5
50 t
hous
and
duri
ng f
isca
l 200
9. W
hen
com
bine
d w
ith
inve
stm
ent g
ains
, the
net
incr
ease
in r
estr
icte
d no
nexp
enda
ble
net a
sset
s w
as $
480
thou
sand
(11.
6%).
Res
tric
ted
expe
ndab
le n
et a
sset
s de
crea
sed
$1.9
mill
ion
(-7.
3%)
whe
n co
mpa
ring
fis
cal
2011
to
fisca
l 20
10 d
ue t
o a
decr
ease
in fu
nds
held
by
the
Stat
e Tr
easu
rer,
off
set b
y in
crea
ses
to s
tude
nt lo
an fu
nds
and
gran
ts.
Res
tric
ted
expe
ndab
le
net a
sset
sin
crea
sed
$2.6
mill
ion
(11.
1 %
) com
pari
ng fi
scal
201
0 to
fisc
al 2
009
due
to a
n in
crea
se in
fund
s he
ld b
y th
e St
ate
Trea
sure
r. T
he S
tate
Per
man
ent
Fund
repr
esen
ts t
he U
nive
rsit
y’s
shar
e of
net
ear
ning
s of
the
Nor
mal
Sch
ool P
erm
anen
t Fu
nd a
nd t
uiti
on d
istr
ibut
ions
, re
duce
d by
exp
endi
ture
s fo
r ca
pita
l pr
ojec
ts.
In a
ddit
ion,
rese
rves
wer
e se
t as
ide
for
rene
wal
s an
d re
plac
emen
ts in
the
Hou
sing
and
Din
ing
Syst
em a
nd t
he W
ade
Kin
g St
uden
t R
ecre
atio
n C
ente
ras
req
uire
d by
bon
d co
vena
nts.
Unr
estr
icte
d ne
t as
sets
inc
reas
ed $
7.9
mill
ion
(18.
6%)
whe
n co
mpa
ring
fis
cal
2011
to
fisca
l 20
10 d
ue t
o in
crea
ses
in
tuit
ion,
H
ousi
ng
and
Din
ning
ca
pita
l pl
an
rese
rves
, in
vest
men
t ga
ins
on
endo
wm
ents
and
othe
r pr
ogra
m
fees
.U
nres
tric
ted
net
asse
tsde
crea
sed
by $
4.0
mill
ion
(-8.
6%)
in f
isca
l 20
10 w
hen
com
pare
d to
fis
cal
2009
, at
trib
utab
le t
o us
ing
unre
stri
cted
res
erve
fund
s to
com
pens
ate
for
redu
ced
stat
e ap
prop
riat
ions
.
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed –
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t8C
apit
al I
mp
rove
men
ts a
nd
Rel
ated
Deb
tD
urin
g fis
cals
201
1 an
d 20
10, $
35.8
mill
ion
and
$40.
1 m
illio
n (e
xclu
ding
libr
ary
mat
eria
ls a
nd e
quip
men
t)w
ere
expe
nded
on c
apit
al im
prov
emen
ts, c
ompa
red
to $
21.7
mill
ion
in fi
scal
200
9. O
f the
$35
.8m
illio
n in
cap
ital
impr
ovem
ents
, $20
.3m
illio
n w
as e
xpen
ded
on th
e M
iller
Hal
l bui
ldin
g re
mod
el, $
5.2
mill
ion
on th
e B
ucha
nan
Tow
ers
reno
vati
ons,
$4.
4 m
illio
n on
net
wor
k in
fras
truc
ture
sw
itch
es a
nd $
1.2
mill
ion
on t
he R
idge
way
bet
a re
nova
tion
. In
fis
cal
2010
, $4
0.1
mill
ion
(exc
ludi
ng l
ibra
ry m
ater
ials
and
equ
ipm
ent)
was
exp
ende
d on
cap
ital
im
prov
emen
ts;
$18.
2 m
illio
n on
the
Mill
er h
all
build
ing
rem
odel
, $9
.3 m
illio
n on
th
e B
ucha
nan
Tow
ers
reno
vati
on,
$3.9
mill
ion
on t
he C
hem
istr
y B
uild
ing
addi
tion
, $1
.2 m
illio
n on
the
Fair
have
n Fi
re S
prin
kler
pro
ject
, and
$97
2 th
ousa
nd o
n th
e H
agga
rd H
all/
Wils
on L
ibra
ry r
enov
atio
n.
Spec
ific
proj
ects
com
plet
ed o
r un
derw
ay in
fisc
al 2
011
incl
ude:
Buc
hana
n To
wer
s A
ddit
ion.
A 1
05-b
ed, 3
7,00
0 sq
uare
feet
add
itio
n is
bei
ng c
onst
ruct
ed o
n th
e ea
st s
ide
of th
e B
ucha
nan
Tow
ers
build
ing.
The
pro
ject
is d
esig
ned
wit
h pr
inci
ples
of d
ay li
ghti
ng a
nd n
atur
al v
enti
lati
on to
ach
ieve
a U
SGB
C L
EE
D
Silv
er a
nd p
ossi
bly
Gol
d ra
ting
. The
pr0
ject
is s
ched
uled
to b
e co
mpl
eted
for
Fall
2011
occ
upan
cy.
Mill
er H
all R
enov
atio
n .D
ue t
o th
e hi
stor
ical
sig
nifi
canc
e an
d it
s pr
omin
ent
loca
tion
in t
he h
eart
of c
ampu
s, M
iller
Hal
l w
as s
elec
ted
to u
nder
go a
maj
or r
enov
atio
n be
ginn
ing
in t
he 2
009-
2011
bie
nniu
m.
The
pro
ject
will
pro
vide
gen
eral
U
nive
rsit
y cl
assr
oom
s, c
ompu
ter
labs
, ins
truc
tion
al s
pace
, and
sup
port
fac
iliti
es f
or t
he W
oodr
ing
Col
lege
of
Edu
cati
on
and
the
Dep
artm
ent o
f Mod
ern
and
Cla
ssic
al L
angu
ages
.
Chem
istr
y B
uild
ing
Add
itio
n.Th
e ad
diti
on o
f 4,
300
squa
re f
eet
will
pro
vide
add
itio
nal c
hem
istr
y an
d bi
olog
y re
sear
ch
and
inst
ruct
iona
l sp
ace
reco
gniz
ing
the
colla
bora
tive
nat
ure
of c
hem
istr
y an
d bi
olog
y re
sear
ch.
Con
stru
ctio
n be
gan
in
June
200
9 w
ith
subs
tant
ial c
ompl
etio
n du
ring
fisc
al 2
011.
Sta
tem
ent
of R
even
ues
, Exp
ense
s an
d C
han
ges
in N
et A
sset
sTh
e St
atem
ents
of R
even
ues,
Exp
ense
s an
d C
hang
es i
n N
et A
sset
spr
esen
t th
e U
nive
rsit
y’s
resu
lts
of o
pera
tion
s an
d no
nope
rati
ng it
ems
that
res
ult
in t
he c
hang
es in
net
ass
ets
for
the
year
. In
acc
orda
nce
wit
h G
ASB
rep
orti
ng p
rinc
iple
s,
reve
nues
and
exp
ense
s ar
e cl
assi
fied
as o
pera
ting
or
nono
pera
ting
.
A c
onde
nsed
com
pari
son
of t
he U
nive
rsit
y’s
reve
nues
, exp
ense
s an
d ch
ange
s in
net
ass
ets
for
the
year
s en
ded
June
30,
20
11, 2
010
and
2009
follo
ws:
20
112
010
20
09
Ope
rati
ng r
even
ues
167
,90
4$
156,
162
$14
8,91
3$
Ope
rati
ng e
xpen
ses
244,
230
237
,989
232,
561
Ope
rati
ng lo
ss(7
6,32
6)(8
1,82
7)
(83,
648)
Stat
e ap
prop
riat
ions
rev
enue
63,7
6164
,621
78,
535
Oth
er n
onop
erat
ing
reve
nues
16,3
5513
,180
12,5
66N
onop
erat
ing
expe
nses
(4,0
61)
(4,1
56)
(4,4
70
)(L
oss)
inco
me
bef
ore
othe
r re
venu
es(2
71)
(8,1
82)
2,98
3O
ther
rev
enue
s27
,395
31,6
74
17,9
52In
crea
se in
net
ass
ets
27,1
2423
,492
20,9
35N
et a
sset
s, b
egin
ning
of y
ear
409,
789
386,
297
365,
362
Net
ass
ets,
end
of y
ear
436,
913
$40
9,7
89$
386,
297
$
(Dol
lars
in th
ousa
nds)
Pri
mar
y F
un
din
g S
ou
rces
The
Uni
vers
ity
relie
s pr
imar
ily o
n st
uden
t tu
itio
n an
d fe
es a
nd s
tate
app
ropr
iati
ons
as r
even
ue s
ourc
es t
o su
ppor
t op
erat
ions
. Tu
itio
n re
venu
e, n
et o
f sc
hola
rshi
p al
low
ance
s, h
as c
onti
nued
to
grow
, inc
reas
ing
$8.5
mill
ion
(10.
7%)
and
$6.1
mill
ion
(8.3
%)
in fi
scal
201
1 an
d fis
cal 2
010,
res
pect
ivel
y.
C-4
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed–
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t9
The
Was
hing
ton
Stat
e Le
gisl
atur
e pr
ovid
es th
e B
oard
of T
rust
ees
wit
h tu
itio
n se
ttin
g au
thor
ity
for
all s
tude
nt c
ateg
orie
s at
th
e U
nive
rsit
y: r
esid
ent
unde
rgra
duat
e,no
n-re
side
nt u
nder
grad
uate
,res
iden
t gr
adua
te,a
nd n
on-r
esid
ent
grad
uate
. The
U
nive
rsit
y is
fre
e to
set
tui
tion
at
any
leve
l in
the
latt
er t
hree
cat
egor
ies.
Tui
tion
incr
ease
d 14
.0%
dur
ing
fisca
l 201
1 an
d fis
cal
2010
com
pare
d to
an
incr
ease
of
5.0%
dur
ing
fisc
al 2
009,
wit
h en
rollm
ent
incr
easi
ng t
o an
ave
rage
ann
ual
head
coun
t of 1
3,52
1 in
fisc
al 2
011,
com
pare
d t0
13,
300
stud
ents
in fi
scal
201
0 an
d 13
,240
in fi
scal
200
9.
Dur
ing
fisca
l 201
1, s
tate
app
ropr
iati
ons
used
for
oper
atio
ns d
eclin
ed b
y $
861
thou
sand
(-1.
3%
) co
mpa
red
to a
dec
reas
e of
$1
3.9
mill
ion
(-17
.7%
) in
fis
cal
2010
. The
fis
cal
2011
dec
reas
e is
att
ribu
tabl
e to
the
con
tinu
ing
budg
et c
halle
nges
at
the
stat
e le
vel t
hat
resu
lted
in a
red
ucti
on o
f $5
.8 m
illio
n in
sta
te a
ppro
pria
tion
s to
the
Uni
vers
ity,
offs
et b
y $4
.9m
illio
n in
ca
pita
l ap
prop
riat
ion
fund
s th
at a
re u
sed
to s
uppo
rt o
pera
tion
s as
the
se e
xpen
ditu
res
are
belo
w t
he U
nive
rsit
y’s
capi
taliz
atio
n th
resh
old.
The
maj
orit
y of
the
decr
ease
in fi
scal
201
0 st
ate
appr
opri
atio
ns is
als
o du
e to
bud
get c
halle
nges
at
the
stat
e le
vel t
hat r
esul
ted
in a
dec
reas
e in
sta
te fu
ndin
g of
$12
.6 m
illio
n co
mbi
ned
wit
h a
decr
ease
from
the
prio
r ye
ar o
f $1
.3 m
illio
n in
cap
ital
app
ropr
iati
on f
unds
tha
t ar
e us
ed t
o su
ppor
t op
erat
ions
. Th
e U
nive
rsit
y's
stat
e su
ppor
ted
enro
llmen
ts (
FTE
) w
ere
11,7
62 f
orfis
cal
2011
. T
he a
ctua
l av
erag
e FT
E w
as 1
2,64
7 (t
he 8
85 a
ddit
iona
l FT
E a
re n
ot
supp
orte
d by
Sta
te d
olla
rs).
Cap
ital
app
ropr
iati
ons
are
reco
gniz
ed a
s re
venu
e w
hen
expe
ndit
ures
are
incu
rred
on
capi
tal p
roje
cts,
and
the
Uni
vers
ity
is
enti
tled
to
rece
ive
the
cash
. C
apit
al a
ppro
pria
tion
s de
crea
sed
by $
3.4
mill
ion
(-12
.5%
) w
hen
com
pari
ng f
isca
l 20
11 t
o fis
cal
2010
due
to
a re
duct
ion
in c
apit
al f
unds
rec
eive
d as
som
e sm
alle
r ca
pita
l pr
ojec
ts w
ere
com
plet
ed i
n fis
cal
2010
, su
ch a
s im
prov
emen
ts to
Wils
on L
ibra
ry a
nd P
arks
Hal
l. Th
is r
even
ue s
ourc
e in
crea
sed
$12.
8 m
illio
n (8
6.1%
) du
ring
fisc
al
2010
com
pare
d to
fis
cal
2009
pri
mar
ily d
ue t
o fu
nds
rece
ived
to
fund
the
Mill
er H
all
reno
vati
on.
No
sign
ifica
nt n
ew
proj
ects
wer
e st
arte
d du
ring
fisc
al 2
009.
Oth
er c
apit
al r
even
ue is
the
reve
nue
earn
ed fr
om th
e St
ate
of W
ashi
ngto
n N
orm
al S
choo
l Per
man
ent F
und.
The
dec
reas
e of
$78
5 th
ousa
nd (
-19.
6%)
whe
n co
mpa
ring
fisc
al 2
011
to fi
scal
201
0 is
due
to r
educ
ed in
vest
men
t ear
ning
s fr
om th
e St
ate
Trea
sure
r. T
he in
crea
se o
f $1
.5 m
illio
n (5
6.7%
) in
fis
cal 2
010
com
pare
d to
fis
cal 2
009
is d
ue t
o ad
diti
onal
fun
ds h
eld
by
the
Stat
e Tr
easu
rer
in th
e N
orm
al S
choo
l Per
man
ent F
und.
The
follo
win
g gr
aphs
illu
stra
te r
even
ues
by s
ourc
e fo
r th
e ye
ars
ende
d Ju
ne 3
0, 2
011
and
2010
:
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed –
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t10Th
e U
nive
rsit
y’s
oper
atin
g ex
pens
es in
crea
sed
by $
6.2
mill
ion
(2.6
%)
whe
n co
mpa
ring
fisc
al 2
011
to fi
scal
201
0 an
d $5
.4m
illio
n (2
.3%
) in
fis
cal
2010
com
pare
d to
fis
cal
200
9. A
sig
nific
ant
port
ion
of t
he f
isca
l 20
11 a
nd f
isca
l 20
10 i
ncre
ases
re
late
tobe
nefit
s ex
pens
e, w
hich
incr
ease
d $2
.5 m
illio
n (7
.3%
) in
fisc
al 2
011
and
$2.5
mill
ion
(7.8
%)
in fi
scal
201
0 du
e to
a
$105
and
$18
4 pe
r m
onth
incr
ease
in th
e em
ploy
er c
ost f
or th
e st
ate
bene
fits
pac
kage
in e
ach
fisca
l yea
r.
Supp
lies
and
purc
hase
d an
d pe
rson
al s
ervi
ces
incr
ease
d $2
.0m
illio
n(4
.3%
) whe
n co
mpa
ring
fisc
al 2
011
to fi
scal
201
0 du
e to
the
pur
chas
ing
of n
on-c
apit
aliz
ed f
urni
shin
gs a
nd e
quip
men
t ne
cess
ary
for
the
Mill
er H
all
and
Buc
hana
n To
wer
s bu
ildin
gs. S
uppl
ies
and
purc
hase
d an
d pe
rson
al s
ervi
ces
incr
ease
d sl
ight
ly b
y $9
6th
ousa
nd (
0.2%
) be
twee
n fis
cal 2
010
and
fisca
l 200
9. D
epre
ciat
ion
expe
nse
incr
ease
d $1
.7 m
illio
n (1
0.6%
) ov
er fi
scal
201
0 an
d $1
.8 m
illio
n (1
2.0%
) ov
er fi
scal
20
09 a
s ad
diti
onal
cap
ital
ass
ets
wer
e co
mpl
eted
and
dep
reci
ated
.
C-5
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed–
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t11
The
follo
win
g gr
aphs
illu
stra
te e
xpen
ses
by n
atur
al c
lass
ifica
tion
for
the
year
s en
ded
June
30,
201
1an
d 20
10:
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
MA
NA
GE
ME
NT
’S D
ISC
USS
ION
AN
D A
NA
LY
SIS
June
30,
201
1 an
d 20
10
Una
udit
ed –
See
Acc
ompa
nyin
g A
ccou
ntan
t’s R
epor
t12O
per
atin
g L
oss
The
Uni
vers
ity’
s op
erat
ing
loss
es w
ere
$76.
3m
illio
n in
fisc
al 2
011,
a d
ecre
ase
of $
5.5
mill
ion
(-6.
7%)
from
fisc
al 2
010,
and
$8
1.8
mill
ion
in f
isca
l 20
10, a
dec
reas
e of
$1.
8 m
illio
n (-
2.2%
) fr
om f
isca
l 20
09.
O
vera
ll op
erat
ing
reve
nues
inc
reas
ed
$11.
7 m
illio
n (7
.5%
) du
ring
fisc
al 2
011
and
$7.2
mill
ion
(4.9
%)
duri
ng fi
scal
201
0, w
hile
ope
rati
ng e
xpen
ditu
res
incr
ease
d in
fisc
als
2011
and
201
0 by
$6.
2m
illio
n (2
.6%
) and
$5.
4m
illio
n (2
.3%
), r
espe
ctiv
ely.
GA
SB s
tand
ards
req
uire
that
Sta
te a
ppro
pria
tion
s an
d Fe
dera
l Pel
l gra
nts
are
clas
sifie
d as
non
oper
atin
g re
venu
es, t
here
by
crea
ting
the
sig
nific
ant
oper
atin
g lo
ss.
If t
hese
rev
enue
s w
ere
clas
sifie
d as
ope
rati
ng, t
he o
pera
ting
gai
n w
ould
be
$1.3
mill
ion
in fi
scal
201
1 an
d th
e op
erat
ing
loss
wou
ld h
ave
been
$5.
7 m
illio
n in
fisc
al 2
010.
Eco
nom
ic F
acto
rs T
hat
Wil
l Aff
ect
the
Fu
ture
D
urin
g th
e ne
xt b
ienn
ium
, Sta
te s
uppo
rt f
or o
pera
tion
s w
ill a
vera
ge 3
5%of
the
Uni
vers
ity’
s op
erat
ing
budg
et, w
ith
the
bala
nce
of t
he o
pera
tion
al r
equi
rem
ents
rel
ying
on
tuit
ion
incr
ease
s. B
egin
ning
wit
h fis
cal
2012
, th
e le
gisl
atur
e ha
s pr
ovid
ed t
he B
oard
of
Trus
tees
(th
e B
oard
) w
ith
tuit
ion
sett
ing
auth
orit
y fo
r al
l st
uden
t ca
tego
ries
at
the
Uni
vers
ity:
re
side
nt u
nder
grad
uate
, no
n-re
side
nt u
nder
grad
uate
, re
side
nt g
radu
ate,
and
non
-res
iden
t gr
adua
te.
The
legi
slat
ure
defin
es “
tuit
ion”
as
the
tuit
ion
oper
atin
g fe
e an
d th
e ca
pita
l bui
ldin
g fe
e. T
he o
pera
ting
fee
con
trib
utes
to
the
day-
to-d
ay
oper
atio
ns o
f the
uni
vers
ity
and
supp
orts
the
Uni
vers
ity’
s op
erat
ing
budg
et p
lans
.
The
2011
-201
3 op
erat
ing
budg
et i
nclu
des
tuit
ion
incr
ease
s of
16.
0% p
er y
ear
for
the
bien
nium
, an
incr
ease
of
$892
per
ye
ar f
or r
esid
ent
unde
rgra
duat
e st
uden
ts.
The
Uni
vers
ity
will
als
o in
crea
se n
on-r
esid
ent
and
grad
uate
tui
tion
rat
es b
y a
sim
ilar
amou
nt a
s th
e re
side
nt u
nder
grad
uate
. In
crea
ses
in S
tate
and
Fed
eral
fin
anci
al a
id a
nd t
he e
xpan
sion
of F
eder
al
educ
atio
n ta
x cr
edit
s ar
e av
aila
ble
to s
tude
nts
and
can
be u
sed
to o
ffse
t th
e tu
itio
n in
crea
se.
The
Stat
e al
so in
crea
sed
the
Stat
e N
eed
Gra
nt p
rogr
am to
hel
p lo
wer
and
mid
dle
inco
me
fam
ilies
.
App
roxi
mat
ely
81.0
% o
f th
e op
erat
ing
budg
et is
com
mit
ted
to c
ompe
nsat
ion-
rela
ted
expe
ndit
ures
. The
dec
reas
e in
sta
te
supp
ort
has
resu
lted
in
posi
tion
elim
inat
ions
tha
t ar
e pe
ndin
g fo
r fis
cal
2012
, th
e m
ajor
ity
of w
hich
are
fro
m v
acan
t po
siti
ons.
Red
uced
rev
enue
pro
ject
ions
at th
e st
ate
leve
l may
res
ult i
n fu
rthe
r bu
dget
red
ucti
ons
in fi
scal
s 20
12 a
nd 2
013.
C-6
IND
EPE
ND
EN
T A
UD
ITO
R’S
RE
POR
T
In
sura
nce
Bui
ldin
g, P
.O. B
ox 4
0021
� O
lym
pia,
Was
hing
ton
9850
4-00
21 �
(360
) 902
-037
0 �
TD
D R
elay
(800
) 833
-638
8 FA
X (3
60) 7
53-0
646 �
http
://w
ww
.sao
.wa.
gov
Nov
embe
r 8, 2
011
Boar
d of
Tru
stee
s
Wes
tern
Was
hing
ton
Uni
vers
ity
Bellin
gham
, Was
hing
ton
We
have
aud
ited
the
acco
mpa
nyin
g fin
anci
al s
tate
men
ts o
f the
bus
ines
s-ty
pe a
ctiv
ities
and
the
disc
rete
ly p
rese
nted
com
pone
nt u
nit o
f Wes
tern
Was
hing
ton
Uni
vers
ity a
s of
and
for
the
year
ende
d Ju
ne 3
0, 2
011,
whi
ch c
olle
ctiv
ely
com
pris
e th
e U
nive
rsity
’s b
asic
fina
ncia
l sta
tem
ents
as
liste
d in
the
tab
le o
f co
nten
ts.
The
se f
inan
cial
sta
tem
ents
are
the
res
pons
ibilit
y of
the
Uni
vers
ity’s
m
anag
emen
t.
Our
re
spon
sibi
lity
is
to
expr
ess
opin
ions
on
th
ese
finan
cial
stat
emen
ts b
ased
on
our
audi
t. W
e di
d no
t au
dit
the
finan
cial
sta
tem
ents
of
the
Wes
tern
Was
hing
ton
Uni
vers
ity F
ound
atio
n, a
dis
cret
ely
pres
ente
d co
mpo
nent
uni
t. T
hose
fin
anci
al
stat
emen
ts w
ere
audi
ted
by o
ther
aud
itors
who
se re
port
ther
eon
has
been
furn
ishe
d to
us,
and
our
opin
ion,
ins
ofar
as
it re
late
s to
the
am
ount
s in
clud
ed i
n th
e ac
com
pany
ing
finan
cial
stat
emen
ts, i
s ba
sed
on th
e re
port
of th
e ot
her
audi
tors
. Th
e ba
sic
finan
cial
sta
tem
ents
of t
he
Uni
vers
ity a
s of
Jun
e 30
, 201
0, w
ere
audi
ted
by o
ther
aud
itors
who
se r
epor
t dat
ed N
ovem
ber
15, 2
010,
exp
ress
ed u
nqua
lifie
d op
inio
ns o
n th
e U
nive
rsity
’s fi
nanc
ial s
tate
men
ts a
nd d
iscr
etel
y
pres
ente
d co
mpo
nent
uni
t.
We
cond
ucte
d ou
r aud
it in
acc
orda
nce
with
aud
iting
sta
ndar
ds g
ener
ally
acc
epte
d in
the
Uni
ted
Sta
tes
of A
mer
ica.
Th
ose
stan
dard
s re
quire
tha
t w
e pl
an a
nd p
erfo
rm t
he a
udit
to o
btai
n
reas
onab
le a
ssur
ance
abo
ut w
heth
er th
e fin
anci
al s
tate
men
ts a
re fr
ee o
f mat
eria
l mis
stat
emen
t.
An
audi
t inc
lude
s ex
amin
ing,
on
a te
st b
asis
, evi
denc
e su
ppor
ting
the
amou
nts
and
disc
losu
res
in th
e fin
anci
al s
tate
men
ts.
An
audi
t als
o in
clud
es a
sses
sing
the
acco
untin
g pr
inci
ples
use
d an
d
sign
ifica
nt e
stim
ates
mad
e by
man
agem
ent,
as w
ell a
s ev
alua
ting
the
over
all f
inan
cial
sta
tem
ent
pres
enta
tion.
W
e be
lieve
that
our
aud
it an
d th
e re
port
of o
ther
aud
itors
pro
vide
a r
easo
nabl
e
basi
s fo
r our
opi
nion
s.
Was
hing
ton
Stat
e A
udito
r B
rian
Sonn
tag
IND
EPE
ND
EN
T A
UD
ITO
R’S
RE
POR
T
In
sura
nce
Bui
ldin
g, P
.O. B
ox 4
0021
� O
lym
pia,
Was
hing
ton
9850
4-00
21 �
(360
) 902
-037
0 �
TD
D R
elay
(800
) 833
-638
8 FA
X (3
60) 7
53-0
646 �
http
://w
ww
.sao
.wa.
gov
As
disc
usse
d in
Not
e 1,
the
finan
cial
sta
tem
ents
of W
este
rn W
ashi
ngto
n U
nive
rsity
are
inte
nded
to p
rese
nt t
he f
inan
cial
pos
ition
, an
d th
e ch
ange
s in
fin
anci
al p
ositi
on,
and,
whe
re a
pplic
able
,
cash
flow
s of
onl
y th
at p
ortio
n of
the
gove
rnm
enta
l act
iviti
es a
nd b
usin
ess-
type
act
iviti
es o
f the
stat
e of
Was
hing
ton
that
is a
ttrib
utab
le to
the
trans
actio
ns o
f the
Uni
vers
ity.
They
do
not p
urpo
rt
to,
and
do n
ot,
pres
ent
fairl
y th
e fin
anci
al p
ositi
on o
f th
e st
ate
of W
ashi
ngto
n as
of
June
30,
2011
, the
cha
nges
in it
s fin
anci
al p
ositi
on, o
r w
here
app
licab
le, i
ts c
ash
flow
s fo
r th
e ye
ar th
en
ende
d in
con
form
ity w
ith a
ccou
ntin
g pr
inci
ples
gen
eral
ly a
ccep
ted
in t
he U
nite
d S
tate
s of
Am
eric
a.
In o
ur o
pini
on,
base
d on
our
aud
it an
d th
e re
port
of o
ther
aud
itors
, th
e fin
anci
al s
tate
men
ts
refe
rred
to a
bove
pre
sent
fairl
y, in
all
mat
eria
l res
pect
s, th
e re
spec
tive
finan
cial
pos
ition
of t
he
busi
ness
-type
act
iviti
es a
nd t
he d
iscr
etel
y pr
esen
ted
com
pone
nt u
nit
of W
este
rn W
ashi
ngto
n
Uni
vers
ity a
s of
Jun
e 30
, 20
11,
and
the
resp
ectiv
e ch
ange
s in
fin
anci
al p
ositi
on a
nd,
whe
re
appl
icab
le, c
ash
flow
s th
ereo
f for
the
year
then
end
ed in
con
form
ity w
ith a
ccou
ntin
g pr
inci
ples
gene
rally
acc
epte
d in
the
Uni
ted
Sta
tes
of A
mer
ica.
The
man
agem
ent’s
dis
cuss
ion
and
anal
ysis
on
page
s 5
thro
ugh
12, i
s no
t a re
quire
d pa
rt of
the
basi
c fin
anci
al s
tate
men
ts b
ut i
s su
pple
men
tary
inf
orm
atio
n re
quire
d by
the
Gov
ernm
enta
l
Acc
ount
ing
Sta
ndar
ds B
oard
. W
e ha
ve a
pplie
d ce
rtain
lim
ited
proc
edur
es,
whi
ch c
onsi
sted
prin
cipa
lly o
f inq
uirie
s of
man
agem
ent r
egar
ding
the
met
hods
of m
easu
rem
ent a
nd p
rese
ntat
ion
of t
he r
equi
red
supp
lem
enta
ry i
nfor
mat
ion.
H
owev
er,
we
did
not
audi
t th
e in
form
atio
n an
d
expr
ess
no o
pini
on o
n it.
Sin
cere
ly,
BR
IAN
SO
NN
TAG
, CG
FM
STAT
E AU
DIT
OR
Insu
ranc
e B
uild
ing,
P.O
. Box
400
21 �
Oly
mpi
a, W
ashi
ngto
n 98
504-
0021
� (3
60) 9
02-0
370
� T
DD
Rel
ay (8
00) 8
33-6
388
FAX
(360
) 753
-064
6 �
http
://w
ww
.sao
.wa.
gov
C-7
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
STA
TE
ME
NT
S O
F N
ET
ASS
ET
S Ju
ne 3
0, 2
011
and
2010
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts15
Ass
ets
20
112
010
Curr
ent a
sset
s:Ca
sh a
nd c
ash
equi
vale
nts
(Not
e 3)
34
,00
3,0
71
$
$50
,17
8,9
23
Res
tric
ted
cash
and
cas
h eq
uiva
lent
s (N
ote
3)-
43
0In
vest
men
ts (N
ote
4)16
,00
0,0
00
18,3
30
,63
4Fu
nds
wit
h St
ate
Trea
sure
r (N
ote
5)4
,87
4,7
01
7,7
16,5
64
Inte
rest
rec
eiva
ble
557
,219
812
,79
2A
ccou
nts
rece
ivab
le, n
et (N
ote
6)4
,24
7,3
68
2,9
81,
108
Prep
aid
expe
nses
60
3,2
23
512
,72
1In
vent
orie
s (N
ote
8)1,
37
4,7
90
1,2
61,
28
9To
tal c
urre
nt a
sset
s6
1,6
60
,37
28
1,7
94
,46
1N
oncu
rren
t ass
ets:
Res
tric
ted
cash
and
cas
h eq
uiva
lent
s (N
ote
3)3
,153
,99
66
,950
,44
0R
estr
icte
d in
vest
men
ts (N
ote
4)7
,60
7,2
75
7,7
61,
616
Inve
stm
ents
(Not
e 4)
30
,22
7,6
173
,37
2,2
53D
ue fr
om S
tate
Tre
asur
er3
,36
7,9
60
7,9
02
,37
9St
uden
t loa
ns r
ecei
vabl
e, n
et (N
ote
7)
7,7
09
,83
37
,69
2,1
78
Non
-dep
reci
able
cap
ital
ass
ets
(Not
e 9)
75,
80
3,3
87
55,6
52,8
15D
epre
ciab
le c
apit
al a
sset
s, n
et (N
ote
9)3
59,8
34
,23
13
57,5
47
,011
Oth
er a
sset
s (N
ote
1)8
90
,90
09
47
,64
4To
tal n
oncu
rren
t ass
ets
48
8,5
95,
199
44
7,8
26
,33
6To
tal a
sset
s55
0,2
55,5
71
529
,62
0,7
97
Lia
bil
itie
sCu
rren
t lia
bilit
ies:
Acc
ount
s pa
yabl
e an
d ac
crue
d lia
bilit
ies
10,6
61,
210
16,5
40
,44
0D
epos
its
paya
ble
2,3
75,
317
2,3
55,9
11D
efer
red
reve
nues
6,2
27
,956
5,4
02
,27
7Co
mpe
nsat
ed a
bsen
ces
(Not
e 11
)7
,92
4,7
97
7,8
92
,23
5
Curr
ent p
orti
on o
f bon
ds a
nd n
otes
pay
able
(Not
es 1
2,13
,15)
3,6
30
,58
53
,48
0,2
16Cu
rren
t por
tion
of n
et p
ensi
on o
blig
atio
ns (N
ote
15,1
9)2
14,0
00
195,
00
0D
epos
its
held
in c
usto
dy fo
r ot
hers
28
8,6
5218
0,3
71
Tota
l cur
rent
liab
iliti
es3
1,3
22
,517
36
,04
6,4
50N
oncu
rren
t lia
bilit
ies:
Long
-ter
m p
orti
on o
f bon
ds a
nd n
otes
pay
able
(Not
e 12
, 13,
15)
78
,02
8,1
74
81,
02
5,59
0Lo
ng-t
erm
net
pen
sion
obl
igat
ions
(Not
e 15
,19)
3,9
91,
455
2,7
59,8
64
Tota
l Lia
bilit
ies
113
,34
2,1
46
119
,83
1,9
04
Net
Ass
ets
Inve
sted
in c
apit
al a
sset
s, n
et o
f rel
ated
deb
t3
57,8
14,9
98
33
6,6
30
,06
0R
estr
icte
d fo
r:N
onex
pend
able
: sc
hola
rshi
ps a
nd p
rofe
ssor
ship
s4
,62
9,0
07
4,6
29
,00
7Ex
pend
able
:
Ins
truc
tion
and
res
earc
h2
,94
8,5
66
2,4
69
,59
0
Loa
ns12
,80
5,2
5312
,155
,93
3
Cap
ital
Pro
ject
s8
,63
7,4
22
11,6
94
,956
Unr
estr
icte
d50
,07
8,1
79
42
,20
9,3
47
Tota
l net
ass
ets
$43
6,9
13,4
25
$40
9,7
88
,89
3
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
FO
UN
DA
TIO
N S
TA
TE
ME
NT
S O
F F
INA
NC
IAL
PO
SIT
ION
Ju
ne 3
0, 2
011
and
2010
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts16
Ass
ets
20
112
010
C
ash
an
d c
ash
eq
uiv
alen
ts$
1,7
25
,04
8$
1,4
90
,17
8
In
ves
tmen
ts:
Op
erat
ing
inv
estm
ent
po
ol
8,6
09
,83
37
,32
6,7
02
En
do
wm
ent
inv
estm
ent
po
ol
E
xte
rnal
ly m
anag
ed in
ves
tmen
ts
43
,62
1,4
54
28
,413
,817
Rea
l est
ate
hel
d fo
r in
ves
tmen
t, n
et
2,5
31,
80
02
,40
7,8
00
An
nu
ity
an
d li
fe in
com
e in
ves
tmen
ts
4,4
26
,814
4,1
58
,76
4
O
ther
4
58
,75
74
58
,75
7
To
tal i
nv
estm
ents
5
9,6
48
,65
84
2,7
65
,84
0
Rec
eiv
able
s:
P
rom
ises
to
giv
e, n
et
2,3
75
,28
92
,69
6,4
03
Oth
er
20
,19
83
27
,611
T
ota
l rec
eiv
able
s 2
,39
5,4
87
3,0
24
,014
O
ther
ass
ets
34
,50
62
8,8
91
T
ota
l ass
ets
63
,80
3,6
99
47
,30
8,9
23
Lia
bil
itie
s
Acc
ou
nts
pay
able
140
,64
311
2,9
95
D
ue
to W
este
rn W
ash
ingt
on
Un
iver
sity
27
7,9
51
121,
163
A
nn
uit
y a
nd
life
inco
me
ob
liga
tio
ns
1,2
96
,44
11,
30
4,3
31
I
nv
estm
ents
hel
d in
tru
st fo
r
W
este
rn W
ash
ingt
on
Un
iver
sity
9,8
56
,62
4-
C
on
tin
gen
t o
bli
gati
on
to
No
rth
wes
t
I
nd
ian
Co
lleg
e F
ou
nd
atio
n1,
05
8,7
73
96
2,8
09
T
ota
l lia
bil
itie
s 12
,63
0,4
32
2,5
01,
29
8
Ne
t A
sse
ts
Un
rest
rict
ed
12,1
72
,12
29
,84
6,9
66
T
emp
ora
rily
res
tric
ted
16,8
18,5
46
13,3
92
,94
9
Per
man
entl
y r
estr
icte
d2
2,1
82
,59
92
1,5
67
,710
T
ota
l net
ass
ets
51,
173
,26
74
4,8
07
,62
5
T
ota
l Lia
bil
itie
s an
d N
et A
sset
s$
63
,80
3,6
99
$4
7,3
08
,92
3
C-8
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
STA
TE
ME
NT
S O
F R
EV
EN
UE
S, E
XP
EN
SES
& C
HA
NG
ES
IN N
ET
ASS
ET
S Ju
ne 3
0, 2
011
and
2010
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts17
20
112
010
Op
erat
ing
Rev
enu
esSt
uden
t tui
tion
and
fees
106,
569,
013
$$
94,5
33,1
07
Les
s sc
hola
rshi
p al
low
ance
s (1
8,36
3,86
2)(1
4,83
3,86
7)
Net
stu
dent
tuit
ion
and
fees
88,2
05,
151
79,
699,
240
Fede
ral g
rant
s an
d co
ntra
cts
8,26
8,69
06,
639,
781
Stat
e an
d lo
cal g
rant
s an
d co
ntra
cts
13,3
19,2
79
13,9
53,9
89N
ongo
vern
men
tal g
rant
s an
d co
ntra
cts
2,35
7,8
811,
969,
470
Sale
s an
d se
rvic
es o
f edu
cati
onal
act
ivit
ies
4,95
6,12
14,
922,
961
Inte
rest
ear
ned
on lo
ans
to s
tude
nts
140
,522
144,
792
Aux
iliar
y en
terp
rise
s55
,37
5,0
3152
,947
,114
Les
s sc
hola
rshi
p al
low
ance
s(4
,718
,356
)(4
,115
,218
)N
et a
uxili
ary
ente
rpri
ses
50,6
56,6
75
48,8
31,8
96To
tal o
pera
ting
rev
enue
s16
7,9
04,
319
156,
162,
129
Op
erat
ing
Ex
pen
ses
Sala
ries
and
wag
es11
7,8
85,2
8011
8,16
3,7
53Be
nefit
s36
,692
,598
34,1
81,5
20Sc
hola
rshi
ps a
nd fe
llow
ship
s17
,80
5,7
09
17,6
34,1
79
Uti
litie
s5,
638,
304
5,51
5,94
1Su
pplie
s an
d m
ater
ials
43,8
90,8
3541
,794
,644
Purc
hase
d an
d pe
rson
al s
ervi
ces
4,24
6,38
34,
362,
892
Dep
reci
atio
n18
,07
0,8
4916
,336
,531
Tot
al o
pera
ting
exp
ense
s 24
4,22
9,95
823
7,9
89,4
60O
pera
ting
loss
(76,
325,
639)
(81,
827
,331
)
No
no
per
atin
g R
even
ues
(E
xp
ense
s)St
ate
appr
opri
atio
ns63
,760
,769
64,6
21,4
17Fe
dera
l Pel
l gra
nt r
even
ue13
,887
,899
11,4
58,9
08
Inve
stm
ent i
ncom
e 7
75,
087
1,18
8,26
1In
tere
st o
n in
debt
edne
ss(4
,061
,27
1)(4
,156
,297
)G
ain
(los
s) o
n en
dow
men
ts1,
684,
904
516,
960
Non
oper
atin
g re
ntal
pro
pert
y in
com
e 7
,118
15,4
90
Tot
al n
onop
erat
ing
reve
nues
(exp
ense
s)7
6,0
54,5
06
73,
644,
739
(L
oss)
inco
me
befo
re o
ther
rev
enue
s(2
71,
133)
(8,1
82,5
92)
Oth
er R
even
ues
Capi
tal a
ppro
pria
tion
s24
,166
,239
27,6
09,
379
Oth
er c
apit
al r
even
ue3,
229,
426
4,0
14,9
07
Gift
s to
per
man
ent e
ndow
men
ts-
50,0
00
Tota
l oth
er r
even
ues
27,3
95,6
6531
,67
4,28
6
Incr
ease
in n
et a
sset
s27
,124
,532
23,4
91,6
94
N
et a
sset
s, b
egin
ning
of y
ear
409,
788
,893
386,
297
,199
Net
ass
ets,
end
of y
ear
436,
913,
425
$$
409,
788
,893
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RST
IY
FO
UN
DA
TIO
N S
TA
TE
ME
NT
S O
F A
CT
IVIT
IES
& C
HA
NG
ES
IN
NE
T A
SSE
TS
June
30,
201
1 an
d 20
10
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts18
Un
rest
rict
edT
emp
ora
rily
R
estr
icte
dP
erm
anen
tly
R
estr
icte
d2
011
Sup
po
rt a
nd
Rev
enu
e
Cont
ribu
tion
$49
6,58
0$
3,64
2,64
7$
555,
360
$4,
694,
587
Se
rvic
es a
nd fa
cilit
ies
prov
ided
by
W
este
rn W
ashi
ngto
n U
nive
rsit
y2,
682,
678
--
2,68
2,67
8
Inte
rest
and
div
iden
ds45
2,19
455
1,59
411
21,
00
3,90
0
Net
rea
lized
gai
ns (l
osse
s) o
n in
vest
men
ts13
239
,243
-39
,37
5
Net
unr
ealiz
ed g
ains
(los
ses)
on
inve
stm
ents
1,97
2,11
54,
606,
198
1,0
00
6,57
9,31
3
Fund
rai
sing
eve
nts
and
othe
r35
,788
438,
835
-47
4,62
3
Tot
al s
uppo
rt a
nd r
even
ue b
efor
e ne
t
a
sset
s re
leas
ed fr
om r
estr
icti
ons
5,63
9,48
79,
278,
517
556,
472
15,4
74,
476
N
et a
sset
s re
leas
ed fr
om r
estr
icti
ons
5,42
0,2
37(5
,420
,237
)-
-
Chan
ge in
res
tric
tion
s84
,383
(142
,80
0)
58,4
17-
To
tal s
uppo
rt a
nd r
even
ue11
,144
,10
73,
715
,480
614,
889
15,4
74,
476
Ex
pen
ses
and
Ch
ange
in V
alu
atio
no
f An
nu
ity
Ob
liga
tio
ns
Pr
ogra
m s
ervi
ces
and
gran
ts5,
00
0,1
83-
-5,
00
0,1
83
Man
agem
ent a
nd g
ener
al -
WW
U in
-kin
d1,
525,
786
--
1,52
5,7
86
Man
agem
ent a
nd g
ener
al -
othe
r23
8,93
1-
-23
8,93
1
Fund
rai
sing
- W
WU
in-k
ind
1,15
6,89
2-
-1,
156,
892
Fu
nd r
aisi
ng89
6,0
35-
-89
6,0
35
T
otal
exp
ense
s8,
817
,827
--
8,81
7,8
27
Chan
ge in
val
uati
on o
f ann
uity
obl
igat
ions
1,12
428
9,88
3-
291,
00
7
T
otal
exp
ense
s an
d ch
ange
in
v
alua
tion
of a
nnui
ty o
blig
atio
ns8,
818,
951
289,
883
-9,
108,
834
Ch
ange
in N
et A
sset
s2,
325,
156
3,42
5,59
761
4,88
96,
365,
642
Net
Ass
ets,
beg
inni
ng o
f yea
r9,
846,
966
13,3
92,9
4921
,567
,710
44,8
07
,625
Net
Ass
ets,
end
of y
ear
$12
,17
2,12
2$
16,8
18,5
46$
22,1
82,5
99$
51,1
73,
267
C-9
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
FO
UN
DA
TIO
N S
TA
TE
ME
NT
S O
F A
CT
IVIT
IES
& C
HA
NG
ES
IN
NE
T A
SSE
TS
June
30,
201
1 an
d 20
10
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts19
Un
rest
rict
edT
emp
ora
rily
R
estr
icte
dP
erm
anen
tly
R
estr
icte
d2
010
Sup
po
rt a
nd
Rev
enu
e
Cont
ribu
tion
s$
373,
327
$3,
238,
045
$1,
765
,421
$5,
376,
793
Se
rvic
es a
nd fa
cilit
ies
prov
ided
by
W
este
rn W
ashi
ngto
n U
nive
rsit
y2,
617
,67
1-
-$
2,61
7,6
71
In
tere
st a
nd d
ivid
ends
551,
648
420
,343
1,0
02
$97
2,99
3
Net
rea
lized
gai
ns (l
osse
s) o
n in
vest
men
ts1,
227
(32,
638)
4($
31,4
07
)
Net
unr
ealiz
ed g
ains
(los
ses)
on
inve
stm
ents
1,92
6,7
312,
028
,039
5,14
3$
3,95
9,91
3
Fund
rai
sing
eve
nts
and
othe
r54
,716
414,
474
300
,053
$7
69,2
43
Tot
al s
uppo
rt a
nd r
even
ue b
efor
e ne
t
ass
ets
rele
ased
from
res
tric
tion
s5,
525,
320
6,0
68,2
632,
07
1,62
313
,665
,20
6
Net
ass
ets
rele
ased
from
res
tric
tion
s3,
663,
167
(3,6
63,1
67)
--
Ch
ange
in r
estr
icti
ons
(79,
651)
62,9
01
16,7
50-
To
tal s
uppo
rt a
nd r
even
ue9,
108,
836
2,46
7,9
972,
088
,37
313
,665
,20
6
Ex
pen
ses
and
Ch
ange
in V
alu
atio
no
f An
nu
ity
Ob
liga
tio
ns
Pr
ogra
m s
ervi
ces
and
gran
ts3,
70
0,1
71
--
3,7
00
,17
1
Man
agem
ent a
nd g
ener
al -
WW
U in
-kin
d1,
268,
858
--
1,26
8,85
8
Man
agem
ent a
nd g
ener
al -
othe
r20
6,97
4-
-20
6,97
4
Fund
rai
sing
- W
WU
in-k
ind
1,34
8,81
3-
-1,
348,
813
Fu
nd r
aisi
ng26
1,24
3-
-26
1,24
3
T
otal
exp
ense
s6,
786
,059
--
6,7
86,0
59
Chan
ge in
val
uati
on o
f ann
uity
obl
igat
ions
312
237
,014
-23
7,3
26
T
otal
exp
ense
s an
d ch
ange
in
v
alua
tion
of a
nnui
ty o
blig
atio
ns6,
786
,37
123
7,0
14-
7,0
23,3
85C
han
ge in
Net
Ass
ets
2,32
2,46
52,
230
,983
2,0
88,3
73
6,64
1,82
1N
et A
sset
s, b
egin
ning
of y
ear
7,5
24,5
01
11,1
61,9
6619
,47
9,33
738
,165
,80
4N
et A
sset
s, e
nd o
f yea
r$
9,84
6,96
6$
13,3
92,9
49$
21,5
67,7
10$
44,8
07
,625
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
STA
TE
ME
NT
S O
F C
ASH
FL
OW
S Ju
ne 3
0, 2
011
and
2010
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ialS
tate
men
ts20
20
112
010
Cas
h F
low
s fr
om
Op
erat
ing
Act
ivit
ies
Tuit
ion
and
fees
$88
,40
2,18
2$
80,3
75,
582
Gra
nts
and
cont
ract
s23
,527
,054
22,8
46,6
70
Paym
ents
to v
endo
rs(6
8,46
6,7
42)
(70
,388
,458
)Pa
ymen
ts to
em
ploy
ees
for
sala
ries
and
ben
efit
s(1
53,6
46,1
09)
(151
,67
1,0
22)
Loan
s is
sued
to s
tude
nts
(1,3
25,7
22)
(1,3
28,8
87)
Colle
ctio
n of
loan
s to
stu
dent
s1,
350
,17
21,
306,
216
Sale
s of
aux
iliar
y en
terp
rise
s50
,680
,489
48,8
93,0
26Sa
les
and
serv
ices
of e
duca
tion
al a
ctiv
itie
s4,
784
,588
4,89
7,8
53In
tere
st r
ecei
ved
on lo
ans
to s
tude
nts
140
,522
144,
792
Net
cas
h us
ed b
y op
erat
ing
acti
viti
es(5
4,55
3,56
6)(6
4,92
4,22
8)
Cas
h F
low
s fr
om
No
nca
pit
al F
inan
cin
g A
ctiv
itie
sSt
ate
appr
opri
atio
ns63
,760
,769
64,6
21,4
17D
irec
t Len
ding
pro
ceed
s66
,522
,389
60,9
38,0
17D
irec
t Len
ding
dis
burs
emen
ts(6
6,53
1,19
5)(6
0,9
27,0
05)
Fede
ral P
ell g
rant
rec
eipt
s13
,887
,899
11,4
58,9
08
Gift
s to
per
man
ent e
ndow
men
ts-
50,0
00
Net
cas
h pr
ovid
ed b
y no
ncap
ital
fina
ncin
g ac
tivi
ties
77
,639
,862
76,
141,
337
Cas
h F
low
s fr
om
In
ves
tin
g A
ctiv
itie
sPu
rcha
ses
of in
vest
men
ts(5
2,91
0,2
43)
(19,
890
,897
)N
et p
roce
eds
from
sal
es o
f inv
estm
ents
30,2
24,7
5833
,40
2,89
8In
tere
st r
ecei
ved
on in
vest
men
ts1,
022
,582
1,60
3,7
30N
et c
ash
prov
ided
by
inve
stin
g ac
tivi
ties
(21,
662,
903)
15,1
15,7
31
Cas
h F
low
s fr
om
Cap
ital
an
d R
elat
ed F
inan
cin
g A
ctiv
itie
sPr
ocee
ds fr
om c
apit
al d
ebt
443,
623
150
,00
0In
tere
st e
arne
d on
bon
d pr
ocee
ds8,
07
844
,30
2Ca
pita
l app
ropr
iati
ons
28,7
00
,658
22,4
67,7
97O
ther
cap
ital
rev
enue
3,22
9,42
64,
014
,90
7Pr
ocee
ds fr
om d
ispo
sal o
f cap
ital
ass
ets
28,1
9628
,657
Purc
hase
s of
cap
ital
ass
ets
(46,
300
,988
)(4
0,2
59,5
71)
Prin
cipa
l pai
d on
cap
ital
deb
t(3
,481
,90
8)(3
,069
,460
)In
tere
st p
aid
on c
apit
al d
ebt
(4,0
30,3
22)
(3,8
42,7
89)
Oth
er a
ctiv
itie
s7
,118
15,4
90N
et c
ash
used
by
capi
tal a
nd r
elat
ed fi
nanc
ing
acti
viti
es(2
1,39
6,11
9)(2
0,4
50,6
67)
Net
incr
ease
in c
ash
and
cash
eqi
vale
nts
(19,
972,
726
)5,
882,
173
Cash
and
cas
h eq
uiva
lent
s, b
egin
ning
of y
ear
57,1
29,7
9351
,247
,620
Cash
and
cas
h eq
uiva
lent
s, e
nd o
f yea
r$
37,1
57,0
67$
57,1
29,7
93
C-10
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
STA
TE
ME
NT
S O
F C
ASH
FL
OW
S Ju
ne 3
0, 2
011
and
2010
See
Acc
ompa
nyin
g N
otes
to th
e Fi
nanc
ial S
tate
men
ts21
Rec
on
cili
atio
n o
f Op
erat
ing
Lo
ss t
o N
et C
ash
Use
d b
y O
per
atin
g A
ctiv
itie
s
20
112
010
Ope
rati
ng lo
ss($
76,
325,
639)
($81
,827
,331
)A
djus
tmen
ts to
rec
onci
le o
pera
ting
loss
to n
et c
ash
used
by
oper
atin
g ac
tivi
ties
Dep
reci
atio
n ex
pens
e18
,07
0,8
4916
,336
,531
Am
orti
zati
on o
f bon
d is
suan
ce c
ost
191,
238
176,
100
Gai
n on
dis
posa
l of f
ixed
ass
ets
(23,
291)
(15,
291)
Chan
ges
in a
sset
s an
d lia
bilit
ies:
Fund
s w
ith
the
Stat
e Tr
easu
rer
2,84
1,86
3(1
,37
3,0
28)
Acc
ount
s re
ceiv
able
(1,2
66,2
60)
316,
253
Stud
ent l
oans
rec
eiva
ble
(17
,655
)(7
1,28
8)In
vent
orie
s(1
13,5
01)
234,
530
Prep
aid
expe
nses
(90
,50
2)(2
04,
820
)A
ccou
nts
paya
ble
and
accr
ued
expe
nses
(65,
993)
(162
,90
5)D
efer
red
reve
nue
825,
679
697
,589
Stud
ent a
nd o
ther
dep
osit
s19
,40
69,
896
Dep
osit
s he
ld in
cus
tody
117
,087
35,9
64Co
mpe
nsat
ed a
bsen
ces
32,5
6244
6
N
et p
ensi
on o
blig
atio
n ex
pens
e1,
250
,591
923,
126
Net
cas
h us
ed b
y op
erat
ing
acti
viti
es($
54,5
53,5
66)
($64
,924
,228
)
Supp
lem
enta
l dis
clos
ure
of c
ash
flow
info
rmat
ion
Acq
uisi
tion
of c
apit
al a
sset
s th
roug
h ac
coun
ts p
ayab
le$
2,39
9,83
8$
8,18
7,2
80
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
221.S
UM
MA
RY
OF
SIG
NIF
ICA
NT
AC
CO
UN
TIN
GP
OL
ICIE
S
Fina
ncia
l Rep
ortin
g E
ntity
Wes
tern
Was
hing
ton
Uni
vers
ity(t
he U
nive
rsity
)is
a
com
preh
ensi
ve,
degr
ee g
rant
ing
publ
ic u
nive
rsit
y in
th
e St
ate
of W
ashi
ngto
n. I
t is
gove
rned
by
a B
oard
of
eigh
t Tr
uste
es a
ppoi
nted
by
the
Gov
erno
r.Th
ese
finan
cial
sta
tem
ents
sum
mar
ize
all
the
fund
typ
esof
th
e U
nive
rsity
incl
udin
g ag
ency
fund
s.
As
defin
ed
by
gene
rally
ac
cept
ed
acco
unti
ng
prin
cipl
es
esta
blis
hed
by
the
Gov
ernm
enta
l A
ccou
ntin
g St
anda
rds
Boa
rd (
GA
SB),
the
finan
cial
re
port
ing
entit
y co
nsis
ts o
f th
e pr
imar
y go
vern
men
t, as
w
ell
as
its
com
pone
nt
unit
, th
e W
este
rn
Was
hing
ton
Uni
vers
ity F
ound
atio
n (t
he F
ound
atio
n).
The
Foun
datio
n is
a
lega
lly
sepa
rate
, ta
x-ex
empt
en
tity.
The
Boa
rdof
Dir
ecto
rsis
sel
f –
perp
etua
ting
and
cons
ists
of 3
1 m
embe
rs.
The
Uni
vers
ity h
as a
n ag
reem
ent
with
th
e Fo
unda
tion
to
desi
gn
and
impl
emen
t su
ch p
rogr
ams
and
proc
edur
es s
o as
to
pers
uade
co
ntin
uous
an
d sp
ecia
l ph
ilant
hrop
ic
supp
ort f
or th
e be
nefit
of t
he U
nive
rsity
. In
exch
ange
, th
e U
nive
rsity
pro
vide
s th
e Fo
unda
tion
with
off
ice
faci
litie
s, f
urni
ture
and
equ
ipm
ent,
and
a si
gnifi
cant
nu
mbe
r of
ful
l-tim
e em
ploy
ees
and
supp
ort
serv
ices
, in
clud
ing
depo
sito
ry,
disb
ursi
ng,
and
payr
oll
and
purc
hasi
ng f
unct
ions
. A
lthou
gh t
he U
nive
rsity
doe
s no
t con
trol
the
tim
ing
or a
mou
nt o
f rec
eipt
s fr
om t
he
Foun
datio
n, t
he m
ajor
ity o
f th
e re
sour
ces
or i
ncom
e th
e Fo
unda
tion
hold
s an
d in
vest
s is
res
tric
ted
for
the
activ
ities
of
th
e U
nive
rsity
by
th
e do
nors
. Th
e Fo
unda
tion’
s ac
tivity
is r
epor
ted
in s
epar
ate
finan
cial
st
atem
ents
bec
ause
of
the
diff
eren
ce i
n its
rep
orti
ng
mod
el a
s de
scri
bed
belo
w.
The
Foun
datio
n re
port
s its
fin
anci
al r
esul
ts u
nder
Fi
nanc
ial
Acc
ount
ing
Stan
dard
s B
oard
(F
ASB
) A
ccou
ntin
g St
anda
rd
Codi
ficat
ion
(ASC
) 95
8-60
5,
Rev
enue
R
ecog
nitio
n,
and
ASC
95
8-20
5,
Pres
enta
tion
of F
inan
cial
Sta
tem
ents
.
As
such
, ce
rtai
n re
venu
e re
cogn
ition
crite
ria
and
pres
enta
tion
feat
ures
are
diff
eren
t fr
om G
ASB
. N
o m
odifi
catio
ns h
ave
been
mad
e to
the
Fou
ndat
ion’
s fin
anci
al
info
rmat
ion
in
the
Uni
vers
ity’s
fin
anci
al
stat
emen
ts f
or t
hese
diff
eren
ces;
how
ever
, sig
nific
ant
note
dis
clos
ures
(se
e N
ote
2) t
o th
e Fo
unda
tion’
s fin
anci
al s
tate
men
ts h
ave
been
inc
orpo
rate
d in
to t
he
Uni
vers
ity’s
not
es to
the
finan
cial
sta
tem
ents
.
The
Foun
datio
n’s
finan
cial
st
atem
ents
ca
n be
ob
tain
ed b
y co
ntac
ting
the
Foun
datio
n at
(36
0) 6
50-
34
08.
Fina
ncia
l Sta
tem
entP
rese
ntat
ion
The
finan
cial
sta
tem
ents
are
pre
sent
ed in
acc
orda
nce
with
gen
eral
ly a
ccep
ted
acco
untin
g pr
inci
ples
and
fo
llow
ing
the
guid
ance
giv
en b
y G
ASB
.The
Uni
vers
ity
has
spec
ial
purp
ose
repo
rts
refle
ctin
g th
e ne
t as
sets
, re
sults
of
op
erat
ions
an
d ca
sh
flow
s fo
r ce
rtai
n au
xilia
ry u
nits
:H
ousi
ng a
nd D
inni
ng S
yste
m,
Wad
e K
ing
Rec
reat
iona
l C
ente
r,
Park
ing
Serv
ices
an
d A
ssoc
iate
d St
uden
ts
Boo
ksto
re.
Thes
e fin
anci
al
stat
emen
ts p
rese
nt o
nly
a se
lect
ed p
ortio
n of
the
ac
tiviti
es o
f th
e U
nive
rsity
. A
s su
ch,
they
are
not
in
tend
ed t
o an
d do
not
pre
sent
eith
er t
he f
inan
cial
po
sitio
n, r
esul
ts o
f op
erat
ions
, or
cha
nges
in
net
as
sets
of
the
Uni
vers
ity.
The
auxi
liary
uni
t fin
anci
al
stat
emen
ts c
an b
e ob
tain
ed b
y co
ntac
ting
Wes
tern
W
ashi
ngto
n U
nive
rsity
at (
360)
650
-367
5.
Bas
is o
f Acc
ount
ing
For
finan
cial
rep
ortin
g pu
rpos
es,
the
Uni
vers
ity i
s co
nsid
ered
a
spec
ial-
purp
ose
gove
rnm
ent
enga
ged
only
in
bu
sine
ss-t
ype
acti
vitie
s.
A
ccor
ding
ly,
the
Uni
vers
ity’s
fina
ncia
l sta
tem
ents
hav
e be
en p
rese
nted
us
ing
the
econ
omic
res
ourc
es m
easu
rem
ent f
ocus
and
th
e ac
crua
l ba
sis
of a
ccou
ntin
g.
Und
er t
he a
ccru
al
basi
s,
reve
nues
ar
e re
cogn
ized
w
hen
earn
ed,
and
expe
nses
are
rec
orde
d w
hen
an o
blig
atio
n ha
s be
en
incu
rred
. A
ll in
tra-
agen
cy t
rans
actio
ns h
ave
been
el
imin
ated
. T
he U
nive
rsity
has
ele
cted
not
to
appl
y an
y FA
SB p
rono
unce
men
ts i
ssue
d af
ter
Nov
embe
r 30
, 198
9.
New
Acc
ount
ing
Pron
ounc
emen
tsO
n Ju
ly
1,
2009
, th
e U
nive
rsity
ad
opte
d G
ASB
St
atem
ent
No.
51
, “A
ccou
ntin
g an
d Fi
nanc
ial
Rep
orti
ng
for
Inta
ngib
le
Ass
ets”
. Th
is
pron
ounc
emen
t inc
lude
s pr
ovis
ions
that
all
inta
ngib
le
asse
ts
not
spec
ifica
lly
excl
uded
by
its
sc
ope
be
clas
sifie
d as
cap
ital
asse
ts.
The
Uni
vers
ity h
as n
o ad
ditio
nal
capi
tal
asse
ts
resu
lting
fr
om
this
pr
onou
ncem
ent.
On
July
1,
20
09,
the
Uni
vers
ity
adop
ted
GA
SB
Stat
emen
t N
o.
53,
“Acc
ount
ing
and
Fina
ncia
l R
epor
ting
fo
r D
eriv
ativ
e In
stru
men
ts”.
This
pr
onou
ncem
ent
addr
esse
s th
e re
cogn
ition
, m
easu
rem
ent,
and
disc
losu
re
of
info
rmat
ion
rega
rdin
g de
riva
tive
inst
rum
ents
ent
ered
into
by
stat
e an
d lo
cal g
over
nmen
ts.
The
Uni
vers
ity d
oes
not h
ave
any
deri
vati
ve i
nstr
umen
ts w
ithin
the
sco
pe o
f th
is
stan
dard
.
On
July
1,
20
10,
the
Uni
vers
ity
adop
ted
GA
SB
Stat
emen
t N
o.
54,
“Fun
d B
alan
ce
Rep
ortin
g an
d
C-11
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
23
Gov
ernm
enta
l Fu
nd
Type
D
efin
ition
s”.
This
pr
onou
ncem
ent
esta
blis
hes
fund
ba
lanc
e cl
assi
ficat
ions
bas
ed p
rim
arily
on
the
exte
nt t
o w
hich
a
gove
rnm
ent
is
boun
d to
ob
serv
e co
nstr
aint
s im
pose
d up
on t
he u
se o
f the
res
ourc
es r
epor
ted.
The
re
port
ed f
und
bala
nces
of
the
Uni
vers
ity
did
not
chan
ge b
ased
on
this
pro
noun
cem
ent.
On
July
1,
20
10,
the
Uni
vers
ity
adop
ted
GA
SB
Stat
emen
t N
o. 5
9, “
Fina
ncia
l Ins
trum
ents
Om
nibu
s”.
This
pr
onou
ncem
ent
impr
oves
th
e co
nsis
tenc
y of
in
vest
men
t m
easu
rem
ents
th
at
are
repo
rted
by
pe
nsio
n an
d ot
her
post
empl
oym
ent
bene
fit
plan
s.
The
Uni
vers
ity f
inan
cial
sta
tem
ents
did
not
chan
ge
base
d on
this
pro
noun
cem
ent.
Oth
er A
ccou
nti
ng
Pol
icie
s
Cas
h,C
ash
Equ
ival
ents
and
Inv
estm
ents
Cas
h an
d ca
sh e
quiv
alen
ts i
nclu
de c
ash
on h
and,
ba
nk
dem
and
depo
sits
, an
d de
posi
ts
wit
h th
e W
ashi
ngto
n St
ate
Loca
l G
over
nmen
t In
vest
men
t Po
ol (
LGIP
).
Cas
h an
d ca
sh e
quiv
alen
ts t
hat
are
held
wit
h th
e in
tent
to
fund
Uni
vers
ity
oper
atio
ns
are
clas
sifi
ed a
s cu
rren
t as
sets
alo
ng w
ith
oper
atin
g fu
nds
inve
sted
in
the
LGIP
. C
ash,
cas
h eq
uiva
lent
s,
and
inve
stm
ents
th
at
repr
esen
t un
spen
t bo
nd
proc
eeds
or
are
held
wit
h th
e in
tent
to
fund
cap
ital
pr
ojec
ts
are
clas
sifie
d as
no
ncur
rent
as
sets
. E
ndow
men
t in
vest
men
ts
are
also
cl
assi
fied
as
no
ncur
rent
ass
ets.
Th
e U
nive
rsit
y re
cord
s al
l ca
sh,
cash
equ
ival
ent,
and
inve
stm
ents
at
amor
tize
d co
st,
whi
ch a
ppro
xim
ates
fair
val
ue.
The
Uni
vers
ity c
ombi
nes
unre
stri
cted
cas
h op
erat
ing
fund
s fr
om
all
depa
rtm
ents
in
to
an
inte
rnal
in
vest
men
t po
ol, t
he i
ncom
e fr
om w
hich
is
allo
cate
d on
a p
ropo
rtio
nal b
asis
. Th
e in
tern
al in
vest
men
t poo
l is
com
pris
ed o
f ca
sh, c
ash
equi
vale
nts,
cer
tific
ates
of
depo
sit,
U.S
. Tre
asur
ies
and
U.S
. Age
ncy
secu
ritie
s.
Acc
ount
s R
ecei
vabl
eA
ccou
nts
rece
ivab
le c
onsi
sts
of tu
ition
and
fee
char
ges
to s
tude
nts
and
auxi
liary
ent
erpr
ise
serv
ices
pro
vide
d to
st
uden
ts,
facu
lty
and
staf
f.
It
also
in
clud
es
amou
nts
due
from
the
Fede
ral g
over
nmen
t, St
ate
and
loca
l go
vern
men
ts,
or p
riva
te s
ourc
es,
in c
onne
ctio
n w
ith
reim
burs
emen
t of
allo
wab
le e
xpen
ditu
res
mad
e pu
rsua
nt t
o th
e U
nive
rsity
’s g
rant
s an
d co
ntra
cts.
A
ccou
nts
rece
ivab
le
are
show
n ne
t of
es
timat
ed
unco
llect
ible
am
ount
s.
Inve
ntor
ies
Inve
ntor
ies
are
carr
ied
at t
he lo
wer
of
cost
or
mar
ket
valu
e.
Capi
tal A
sset
sLa
nd,
build
ings
and
equ
ipm
ent
are
reco
rded
at
cost
or
, if a
cqui
red
by g
ift, a
t fai
r m
arke
t val
ue o
n th
e da
te
of
the
gift
.
For
equi
pmen
t, th
e U
nive
rsity
’s
capi
taliz
atio
n po
licy
incl
udes
all
item
s w
ith a
uni
t cos
t of
$5,
000
or m
ore
and
an e
stim
ated
use
ful
life
of
grea
ter
than
one
yea
r.
Ren
ovat
ions
to
build
ings
, in
fras
truc
ture
, an
d la
nd
impr
ovem
ents
th
at
sign
ifica
ntly
inc
reas
e th
e va
lue
or e
xten
d th
e us
eful
lif
e of
the
str
uctu
re a
re c
apita
lized
. R
outin
e re
pair
s an
d m
aint
enan
ce a
re c
harg
ed to
ope
rati
ng e
xpen
se in
th
e ye
ar in
whi
ch t
he e
xpen
se w
as in
curr
ed.
Inte
rest
ex
pens
e in
curr
ed
duri
ng
capi
tal
cons
truc
tion
is
ca
pita
lized
as
part
of
the
build
ing
cost
. D
urin
g fis
cal
2011
an
d fis
cal
2010
, $1
42,6
77
and
$176
,208
in
co
nstr
uctio
n re
late
d in
tere
st
was
ca
pita
lized
, re
spec
tivel
y.
Dep
reci
atio
n is
com
pute
d us
ing
the
stra
ight
lin
e m
etho
d ov
er t
he e
stim
ated
use
ful
lives
of
the
ass
ets,
gen
eral
ly 4
0 to
50
year
s fo
r bu
ildin
gs,
20
to
25
year
s fo
r in
fras
truc
ture
an
d la
nd
impr
ovem
ents
, 15
yea
rs f
or l
ibra
ry r
esou
rces
, and
5
to 7
yea
rs fo
r eq
uipm
ent.
Bon
d Pr
emiu
ms/
Dis
coun
ts a
nd Is
suan
ce C
osts
B
ond
prem
ium
s/di
scou
nts
and
issu
ance
cos
ts a
re
defe
rred
and
am
orti
zed
over
the
ter
m o
f th
e bo
nds
usin
g th
e ef
fect
ive
inte
rest
met
hod.
Th
e re
mai
ning
ba
lanc
es o
f bon
d pr
emiu
ms/
disc
ount
s ar
epr
esen
ted
in t
he S
tate
men
ts o
f N
et A
sset
s ne
t of
the
fac
e am
ount
of
bond
s pa
yabl
e.B
ond
issu
ance
cos
ts a
re
show
n as
oth
er a
sset
s on
the
Sta
tem
ents
of
Net
A
sset
s.
Def
erre
d R
even
ues
Def
erre
d re
venu
es o
ccur
whe
n re
venu
es h
ave
been
co
llect
ed in
adv
ance
for
tui
tion
and
fee
s an
d ce
rtai
n au
xilia
ry a
ctiv
itie
s pr
ior
to t
he e
nd o
f th
e fis
cal y
ear,
but
rela
te t
ose
rvic
es t
o be
pro
vide
d in
the
follo
win
g fis
cal y
ear.
Net
Ass
ets
The
Uni
vers
ity’s
net
ass
ets
are
clas
sifie
d as
follo
ws:
Inve
sted
in c
apita
l ass
ets,
net
of r
elat
ed d
ebt
This
rep
rese
nts
the
Uni
vers
ity’s
tot
al i
nves
tmen
t in
ca
pita
l as
sets
, ne
t of
out
stan
ding
deb
t ob
ligat
ions
re
late
d to
thos
e ca
pita
l ass
ets.
To
the
exte
nt d
ebt h
as
been
incu
rred
,but
not
yet
exp
ende
d fo
r ca
pita
l ass
ets,
su
ch a
mou
nts
are
not i
nclu
ded
as a
com
pone
nt o
f
capi
tal
asse
tsbu
t ar
e in
clud
ed a
s a
com
pone
nt o
f re
stri
cted
exp
enda
ble
net a
sset
s de
scri
bed
belo
w.
Res
tric
ted
net a
sset
s,ex
pend
able
Res
tric
ted
expe
ndab
le n
et a
sset
s in
clud
e re
sour
ces
in
whi
ch
the
Uni
vers
ity
is
lega
lly
or
cont
ract
ually
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
24
oblig
ated
to
spen
d in
acc
orda
nce
with
res
tric
tions
im
pose
d by
ext
erna
l thi
rd p
artie
s.
Res
tric
ted
net a
sset
s,no
nexp
enda
ble
Non
expe
ndab
le
rest
rict
ed
net
asse
ts
cons
ist
of
endo
wm
ent a
nd s
imila
r ty
pe fu
nds
in w
hich
don
ors
or
othe
r ou
tsid
e so
urce
s ha
ve s
tipul
ated
, as
a co
nditi
on
of t
he g
ift i
nstr
umen
t, th
at t
he p
rinc
ipal
is
to b
e m
aint
aine
d in
viol
ate
and
in p
erpe
tuit
y, a
nd i
nves
ted
for
the
purp
ose
of
prod
ucin
g pr
esen
t an
d fu
ture
in
com
e, w
hich
may
eith
er b
e ex
pend
ed o
r ad
ded
to
prin
cipa
l.U
nres
tric
ted
net a
sset
sU
nres
tric
ted
net
asse
ts r
epre
sent
res
ourc
es d
eriv
ed
from
stu
dent
tui
tion
and
fee
s, S
tate
appr
opri
atio
ns,
and
sale
s an
d se
rvic
es o
f ed
ucat
iona
l de
part
men
ts
and
auxi
liary
ent
erpr
ises
. T
hese
res
ourc
es a
re u
sed
for
tran
sact
ions
re
latin
g to
th
e ed
ucat
iona
l an
d ge
nera
l ope
ratio
ns o
f the
Uni
vers
ity, a
nd m
ay b
e us
ed
at t
he d
iscr
etio
n of
the
gov
erni
ng b
oard
to
mee
t ex
pens
es.
Th
ese
reso
urce
s al
so
incl
ude
auxi
liary
en
terp
rise
s, w
hich
are
sub
stan
tially
sel
f-su
ppor
ting
activ
ities
tha
t pr
ovid
e se
rvic
es f
or s
tude
nts,
fac
ulty
an
d st
aff.
Cla
ssifi
catio
n of
Rev
enue
san
d E
xpen
ses
The
Uni
vers
ity
has
clas
sifie
d its
re
venu
esan
d ex
pens
es
as
eith
er
oper
atin
g or
no
nope
ratin
gac
cord
ing
to th
e fo
llow
ing
crite
ria:
Ope
rati
ng r
even
ues
Ope
ratin
g re
venu
es i
nclu
de a
ctiv
ities
tha
t ha
ve t
he
char
acte
rist
ics
of e
xcha
nge
tran
sact
ions
suc
h as
:(1
) st
uden
t tu
ition
and
fee
s, n
et o
f sc
hola
rshi
p di
scou
nts
and
allo
wan
ces,
(2)
sal
es a
nd s
ervi
ces
of a
uxili
ary
ente
rpri
ses,
(3)
mos
t Fe
dera
l, St
ate
and
loca
l gr
ants
an
d co
ntra
cts,
an
d (4
) in
tere
st
on
inst
ituti
onal
st
uden
t loa
ns.
Ope
ratin
g ex
pens
esO
pera
ting
exp
ense
s ar
e th
ose
cost
s in
curr
ed in
dai
ly
oper
atio
ns,
such
as
sala
ries
and
wag
es,
bene
fits
, sc
hola
rshi
ps a
nd f
ello
wsh
ips
expe
nses
, dep
reci
atio
n,
utili
ties
, and
sup
plie
s.
Non
oper
atin
g re
venu
esN
onop
erat
ing
reve
nues
inc
lude
act
iviti
es t
hat
have
th
e ch
arac
teri
stic
s of
non
-exc
hang
e tr
ansa
ctio
ns, s
uch
as S
tate
appr
opri
atio
ns,
Fede
ral
Pell
gran
t re
venu
ean
d in
vest
men
t inc
ome.
Incl
uded
in fi
scal
201
0 ar
e St
ate
App
ropr
iatio
ns o
ne-t
ime
Fede
ral
Rei
nves
tmen
t an
d R
ecov
ery
Act
stim
ulus
fund
s of
$8.
9 m
illio
n.
Non
oper
atin
g ex
pens
esN
onop
erat
ing
expe
nses
in
clud
e co
sts
rela
ted
to
finan
cing
or
inve
stin
gac
tivi
ties
suc
h as
int
eres
t on
in
debt
edne
ss.
Oth
er R
even
ues
Oth
er
reve
nues
in
clud
e ac
tivi
ties
th
at
have
th
e ch
arac
teri
stic
s of
non
-exc
hang
e tr
ansa
ctio
ns, s
uch
as
stat
e ca
pita
l ap
prop
riat
ions
an
d gi
fts
to
endo
wm
ents
.
Scho
lars
hip
Dis
coun
ts a
nd A
llow
ance
sSt
uden
t tu
itio
n an
d fe
e re
venu
es,
and
cert
ain
othe
rre
venu
es
from
st
uden
ts,
are
repo
rted
ne
t of
sc
hola
rshi
p di
scou
nts
and
allo
wan
ces
in
the
Stat
emen
ts o
f R
even
ues,
Exp
ense
s, a
nd C
hang
es i
n N
et A
sset
s. S
chol
arsh
ip d
isco
unts
and
allo
wan
ces
are
the
diff
eren
ce b
etw
een
the
stat
edch
arge
for
goo
ds
and
serv
ices
pro
vide
d by
the
Uni
vers
ity,
and
the
amou
nt t
hat
is p
aid
by s
tude
nts
and/
or t
hird
par
ties
mak
ing
paym
ents
on
the
stud
ents
’ be
half.
Ce
rtai
n go
vern
men
tal
gran
ts,
such
as
Pell
gran
ts,
and
othe
r Fe
dera
l, St
ate
or
non-
gove
rnm
enta
l pr
ogra
ms
are
reco
rded
as
ei
ther
op
erat
ing
or
nono
pera
ting
reve
nues
in th
e U
nive
rsity
’s fi
nanc
ial S
tate
men
ts.
To t
he e
xten
t th
at r
even
ues
from
suc
h pr
ogra
ms
are
used
to
satis
fy t
uitio
n an
d fe
es a
nd o
ther
stu
dent
ch
arge
s,th
e U
nive
rsity
has
rec
orde
d a
scho
lars
hip
disc
ount
and
allo
wan
ce.
Tax
Exe
mpt
ion
The
Uni
vers
ity
is a
tax-
exem
pt in
stru
men
talit
y of
the
Stat
e of
Was
hing
ton
orga
nize
d un
der
the
prov
isio
ns
of S
ecti
on 1
15(a
) of t
he I
nter
nal R
even
ue C
ode
and
is
exem
pt
from
Fe
dera
l in
com
e ta
xes
on
rela
ted
inco
me.
Rec
lass
ifica
tion
sC
erta
in
acco
unts
in
th
e pr
ior
year
fin
anci
al
stat
emen
ts h
ave
been
rec
lass
ified
for
com
para
tive
pu
rpos
es
to
conf
orm
to
th
e pr
esen
tati
on
in
the
curr
ent y
ear
fina
ncia
l sta
tem
ents
.
2.C
OM
PO
NE
NT
UN
IT
The
Foun
datio
n pr
esen
ts
info
rmat
ion
abou
t its
fin
anci
al p
ositi
on a
nd a
ctiv
ities
acc
ordi
ng to
the
follo
win
g th
ree
clas
ses
of n
et a
sset
s, d
epen
ding
on
the
exis
tenc
e an
d na
ture
of d
onor
res
tric
tion
s:
Unr
estr
icte
d ne
t ass
ets
Supp
ort r
ecei
ved
that
is n
ot s
ubje
ct to
don
or-i
mpo
sed
rest
rict
ions
and
ove
r w
hich
the
Boa
rd o
f Dir
ecto
rs h
as
disc
retio
nary
con
trol
is c
lass
ified
as
unre
stri
cted
.
C-12
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
25
Tem
pora
rily
res
tric
ted
net a
sset
sSu
ppor
t re
ceiv
ed
subj
ect
to
dono
r-im
pose
d us
e re
stri
ctio
ns o
r tim
e re
stri
ctio
ns th
at w
ill b
e m
et e
ither
th
roug
h ac
tion
s of
the
Fou
ndat
ion
or b
y th
e pa
ssag
e of
tim
e is
cla
ssifi
ed a
s te
mpo
rari
ly r
estr
icte
d.
In t
he
peri
od
dono
r re
stri
ctio
ns
are
met
, te
mpo
rari
ly
rest
rict
ed n
et a
sset
s ar
e re
clas
sifie
d to
unr
estr
icte
d ne
t as
sets
and
rep
orte
d in
the
sta
tem
ent
of a
ctiv
ities
as
net
ass
ets
rele
ased
from
res
tric
tions
.
Perm
anen
tly r
estr
icte
d ne
t ass
ets
Supp
ort
rece
ived
su
bjec
t to
do
nor-
impo
sed
rest
rict
ions
st
ipul
atin
g th
at
fund
s be
in
vest
ed
in
perp
etui
ty is
cla
ssifi
ed a
s pe
rman
ently
res
tric
ted.
In
ac
cord
ance
wit
h pu
rpos
es s
tipul
ated
by
the
dono
rs,
earn
ings
fro
m s
uch
fund
s m
ay b
e ei
ther
unr
estr
icte
d or
tem
pora
rily
res
tric
ted.
3.C
AS
HA
ND
CA
SH E
QU
IVA
LE
NT
S
The
Uni
vers
ity c
ombi
nes
unre
stri
cted
cas
h op
erat
ing
fund
s fr
om
all
depa
rtm
ents
in
to
an
inte
rnal
in
vest
men
t po
ol, t
he i
ncom
e fr
om w
hich
is
allo
cate
d to
the
dep
artm
ents
on
a pr
opor
tiona
l ba
sis.
Th
e in
tern
al i
nves
tmen
t po
ol i
s co
mpr
ised
of
cash
and
ca
sh e
quiv
alen
ts a
nd in
vest
men
ts.
Cash
and
cas
h eq
uiva
lent
s in
clud
e ca
sh o
n ha
nd, p
etty
ca
sh, c
hang
e fu
nds,
ban
k ba
lanc
es, a
nd fu
nds
held
in
the
Loca
l Gov
ernm
ent I
nves
tmen
t Poo
l (LG
IP).
Ban
k ba
lanc
es a
re i
nsur
ed b
y th
e Fe
dera
l D
epos
it
Insu
ranc
e Co
rpor
atio
n (F
DIC
) or
by
a co
llate
ral p
ool
adm
inis
tere
d by
th
e W
ashi
ngto
n Pu
blic
D
epos
it Pr
otec
tion
Com
mis
sion
(PD
PC).
The
LGIP
is c
ompa
rabl
e to
a R
ule
2a-7
mon
ey m
arke
t fu
nd
reco
gniz
ed
by
the
Secu
ritie
s an
d E
xcha
nge
Com
mis
sion
(17C
FR.2
70.2
a-7)
. R
ule
2a-7
fund
s ar
e lim
ited
to
high
qu
ality
ob
ligat
ions
w
ith
limite
d m
axim
um a
nd a
vera
ge m
atur
itie
s, th
e ef
fect
of w
hich
is
to m
inim
ize
both
mar
ket a
nd c
redi
t ris
k. T
he L
GIP
is
an
unra
ted
inve
stm
ent p
ool.
At
June
30,
201
1 an
d 20
10,
the
carr
ying
am
ount
of
cash
an
d ca
sh
equi
vale
nts
is
$37,
157,
067
and
$57,
129,
793,
res
pect
ivel
y.
The
se
bala
nces
inc
lude
re
stri
cted
cas
h an
d ca
sh e
quiv
alen
ts o
f $2
,055
,907
an
d $6
,044
,593
of
un
spen
t H
ousi
ng
and
Din
ing
Syst
em b
ond
proc
eeds
at
June
30,
201
1 an
d 20
10,
resp
ecti
vely
. T
he c
arry
ing
amou
nt o
f ca
sh a
nd c
ash
equi
vale
nts
appr
oxim
ates
the
mar
ket v
alue
.
4.IN
VE
STM
EN
TS
Inve
stm
ents
incl
ude
inte
rnal
ly p
oole
d ca
sh o
pera
ting
fund
s in
vest
ed i
n ce
rtifi
cate
s of
dep
osit
(CD
’s)
and
U.S
. Tr
easu
ry a
nd A
genc
y se
curi
ties,
ren
ewal
and
repl
acem
ent
fund
s,
unsp
ent
bond
pr
ocee
ds,
and
Uni
vers
ity e
ndow
men
t fun
ds.
The
cert
ifica
tes
of
depo
sit
held
in
th
e in
tern
al
inve
stm
ent
pool
are
ins
ured
by
the
(FD
IC)
or b
y a
colla
tera
l po
ol
adm
inis
tere
d by
th
e W
ashi
ngto
n Pu
blic
Dep
osit
Prot
ectio
n C
omm
issi
on (P
DPC
).Th
e U
nive
rsity
he
ld
$6,0
00,0
00
and
$18,
650,
063
of
cert
ifica
tes
of d
epos
its in
poo
led
inve
stm
ents
at
June
30
, 20
11 a
nd20
10,
resp
ectiv
ely.
U.S
. Tr
easu
ry a
nd
Age
ncy
secu
riti
es
are
rate
d A
AA
by
St
anda
rd
&
Poor
’s
and
Fitc
h an
d A
aa
by
Moo
dy’s
In
vest
ors
Serv
ice.
The
Uni
vers
ity h
eld
$35,
000,
000
and
$0of
U
.S. T
reas
ury
and
Age
ncy
secu
ritie
s in
the
inve
stm
ent
pool
at J
une
30, 2
011
and
2010
, res
pect
ivel
y.
The
Uni
vers
ity s
epar
atel
y in
vest
s th
e H
ousi
ng a
nd
Din
ing
Syst
em R
enew
al a
nd R
epla
cem
ent
fund
s.
As
of
June
30
, 20
11
and
2010
, th
e R
enew
al
and
Rep
lace
men
t fu
nds
of
$2,9
77,2
58
and
$2,8
12,1
69
wer
e se
para
tely
inve
sted
in C
D’s
.
Uni
vers
ity e
ndow
men
t fu
nds
are
inve
sted
und
er t
he
dire
ctio
n of
the
End
owm
ent
Inve
stm
ent
Com
mitt
ee.
The
com
mitt
ee
is
resp
onsi
ble
for
revi
ewin
g an
d re
com
men
ding
pol
icy
to d
efin
e in
vest
men
t ob
ject
ives
an
d al
low
able
inv
estm
ents
, m
onito
ring
inv
estm
ent
perf
orm
ance
s an
d so
cial
con
cern
s an
d re
com
men
ding
in
vest
men
ts,
inve
stm
ent
man
ager
s, a
nd/o
r m
utua
l fu
nds.
Eff
ecti
ve J
uly,
201
1 th
e un
iver
sity
end
owm
ent
fund
s ar
e in
vest
ed
in
acco
rdan
ce
with
W
este
rn
Was
hing
ton
Uni
vers
ity F
ound
atio
n po
licy
unde
r th
e di
rect
ion
of th
e Fo
unda
tion
Fin
ance
Com
mitt
ee.
End
owm
ent
fund
s ar
e co
mpr
ised
of
$5,6
08,0
43in
do
nor
rest
rict
ed a
nd u
nres
tric
ted
and
$4,2
48,5
81 in
qu
asi
endo
wm
ents
at
June
30,
201
1 an
d $4
,623
,294
in
don
or r
estr
icte
dan
d un
rest
rict
edan
d $3
,377
,967
in
qua
si e
ndow
men
ts a
t Jun
e 30
, 201
0.
Inte
rest
Rat
e R
isk
The
Uni
vers
ity m
anag
es it
s ex
posu
re to
fair
val
ue
loss
es in
the
inte
rnal
inve
stm
ent
pool
by
limit
ing
the
dura
tion
of it
s po
rtfo
lio t
o a
max
imum
of
1.82
yea
rs,
with
a ta
rget
of 1
.46
year
s.
End
owm
ent
fund
s ar
e in
vest
ed u
nder
End
owm
ent
Inve
stm
ent
Polic
y gu
idel
ines
. Th
ese
guid
elin
es
incl
ude
the
prim
ary
obje
ctiv
e of
ach
ievi
ng lo
ng-t
erm
gr
owth
usi
ng p
rude
nt i
nves
ting
prac
tices
and
do
not
limit
inve
stm
ent m
atur
ities
as
a m
eans
to m
anag
ing
inte
rest
rat
e ex
posu
re.
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
26
Con
cent
rati
on o
f Cre
dit R
isk
Con
cent
rati
on o
f cr
edit
ris
k fo
r in
vest
men
ts i
s th
e ri
sk o
f lo
ss a
ttri
buta
ble
to t
he m
agni
tude
of
an
inve
stm
ent
in a
sin
gle
issu
er.
The
Uni
vers
ity
does
no
t ha
ve a
form
al p
olic
y fo
r m
anag
ing
conc
entr
atio
n of
cre
dit
risk
in
the
inte
rnal
inv
estm
ent
pool
. Th
e
End
owm
ent
Inve
stm
ent
Polic
y lim
its
the
endo
wm
ent i
nves
tmen
ts to
no
mor
e th
an 5
.0%
of t
he
port
folio
for
a si
ngle
issu
er.
At J
une
30,2
011,
the
Uni
vers
ity
held
the
follo
win
gin
cas
h, c
ash
equi
vale
nts
and
inve
stm
ents
:
Fair
Wei
ghte
d A
vera
ge
Des
crip
tion
Val
ueM
atur
ity (i
n Y
ears
)
WW
U In
vest
men
t Poo
l:
Cas
h &
Cas
h Eq
uiva
lent
s35
,101
,160
$0.
003
T
ime
Cer
tific
ates
of D
epos
its (C
Ds)
6,00
0,00
00.
046
U
.S. T
reas
urie
s5,
000,
000
0.00
6
U.S
. Age
ncie
s30
,000
,000
0.72
2
WW
U E
ndow
men
t Fun
ds:
Cas
h &
cas
h eq
uiva
lent
s10
0,05
00.
003
Fix
ed in
com
e in
vest
men
ts:
U
.S. T
reas
urie
s27
1,75
95.
500
U
.S. A
genc
ies
279,
228
4.04
0
Oth
er fi
xed
inco
me
1,33
6,63
8n/
a E
quity
inve
stm
ents
6,33
2,45
6n/
a R
eal e
stat
e51
5,88
2n/
a A
ltern
ativ
e in
vest
men
ts1,
020,
611
n/a
Oth
er In
vest
men
ts:
Ren
ewal
and
Rep
lace
men
t Tim
e C
Ds
2,97
7,25
80.
030
Bon
d Pr
ocee
ds In
vest
ed in
LG
IP
2,05
5,90
70.
003
Mis
cella
neou
s1,
010
n/a
TO
TA
L C
ASH
AN
D IN
VES
TM
ENT
S90
,991
,959
$
C-13
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
27
At J
une
30, 2
010,
the
Uni
vers
ity
held
the
follo
win
gin
cas
h, c
ash
equi
vale
nts
and
inve
stm
ents
:
5.F
UN
DS
WIT
H S
TA
TE
TR
EA
SU
RE
R
This
acc
ount
repr
esen
tsth
e U
nive
rsity
's sh
are
of n
et
earn
ings
of
the
Stat
e of
Was
hing
ton
Nor
mal
Sch
ool
Perm
anen
t Fun
d an
d tu
ition
dis
trib
utio
ns, r
educ
ed b
y ex
pend
iture
s fo
r ca
pita
l pr
ojec
ts a
nd d
ebt
serv
ice
incu
rred
ov
er
the
year
s.Th
e N
orm
al
Scho
ol
Perm
anen
t Fu
nd, e
stab
lishe
d un
der
RCW
43.
79.1
60,
is a
per
man
ent
endo
wm
ent
fund
.E
arni
ngs
from
the
in
vest
men
t ar
e ei
ther
re
inve
sted
or
us
ed
for
the
bene
fit o
f C
entr
al W
ashi
ngto
n U
nive
rsity
, E
aste
rn
Was
hing
ton
Uni
vers
ity,
Wes
tern
W
ashi
ngto
n U
nive
rsity
, and
The
Eve
rgre
en S
tate
Col
lege
.
The
inve
stin
g ac
tiviti
es a
re t
he r
espo
nsib
ility
of
the
Was
hing
ton
Stat
eTr
easu
rer's
O
ffic
e.Th
e pr
imar
y
sour
ces
of
new
pr
inci
pal
for
the
Nor
mal
Sc
hool
Pe
rman
ent f
und
are
reve
nues
, pri
mar
ily ti
mbe
r sa
les,
fr
om c
erta
in S
tate
lan
ds.
The
Sta
te l
ands
inc
lude
10
0,00
0 ac
res
gran
ted
by
the
Uni
ted
Stat
es
gove
rnm
ent
for
stat
e no
rmal
sc
hool
s an
d ar
e m
anag
ed
by
the
Stat
e D
epar
tmen
t of
N
atur
al
Res
ourc
es.
The
Uni
vers
ity’s
ear
ning
san
d di
stri
butio
nson
the
fu
nd fo
r th
e ye
ars
endi
ngJu
ne 3
0, 2
011
and
2010
are
$3,2
29,4
26 a
nd $
4,01
4,90
7, r
espe
ctiv
ely,
whi
ch a
re
repo
rted
as
othe
r ca
pita
l rev
enue
.
Fair
Wei
ghte
d A
vera
ge
Des
crip
tion
Val
ueM
atur
ity (i
n Y
ears
)
WW
U In
vest
men
t Poo
l:
Cas
h &
Cas
h Eq
uiva
lent
s51
,085
,200
$0.
003
T
ime
Cer
tific
ates
of D
epos
its (C
Ds)
18,6
50,0
630.
145
WW
U E
ndow
men
t Fun
ds:
M
utua
l Fun
ds -
Mon
ey M
arke
t1,
011,
589
1.35
3
U.S
. Tre
asur
ies
1,08
4,63
15.
872
U
.S. A
genc
ies
1,24
7,06
02.
759
Eq
uity
Sec
uriti
es4,
657,
981
n/a
Oth
er In
vest
men
ts:
Ren
ewal
and
Rep
lace
men
t Tim
e C
Ds
2,81
2,16
90.
063
Bon
d Pr
ocee
ds In
vest
ed in
LG
IP
6,04
4,59
30.
003
Mis
cella
neou
s1,
010
n/a
TO
TA
L C
ASH
AN
D IN
VES
TM
ENT
S86
,594
,296
$
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
286.A
CC
OU
NT
S R
EC
EIV
AB
LE
, NE
T
At J
une
30,2
011
and
2010
, the
maj
or c
ompo
nent
s of
acc
ount
s re
ceiv
able
are
as
follo
ws:
20
112
010
Stu
den
t tu
itio
n a
nd
fees
$1,
73
6,7
67
$1,
164
,00
3F
eder
al, S
tate
an
d p
riv
ate
gran
ts a
nd
co
ntr
acts
2,3
16,2
55
1,4
48
,92
1A
ux
ilia
ry e
nte
rpri
ses
and
oth
er o
per
atin
g ac
tiv
itie
s6
97
,27
08
87
,68
3T
ota
l acc
ou
nts
rec
eiv
able
4,7
50
,29
33
,50
0,6
07
Les
s al
low
ance
for
do
ub
tfu
l acc
ou
nts
(50
2,9
24
)(5
19,4
99
)
Acc
ou
nts
rec
eiv
able
, net
$4
,24
7,3
68
$2
,98
1,10
8
7.ST
UD
EN
T L
OA
NS
RE
CE
IVA
BL
E, N
ET
At J
une
30, 2
011
and
2010
, stu
dent
loan
s re
ceiv
able
are
as
follo
ws:
2011
2010
Fede
ral P
erki
ns s
tude
nt lo
ans
$8,
554,
856
$8,
518,
653
Oth
er lo
ng-t
erm
loan
s37
,20
341
,40
7In
stit
utio
nal l
oans
50,8
1762
,041
Tota
l stu
dent
loan
s8,
642,
876
8,62
2,10
1Le
ss a
llow
ance
for
doub
tful
acc
ount
s(9
33,0
42)
(929
,923
)
Stud
ent l
oans
rec
eiva
ble,
net
$7
,70
9,83
3$
7,6
92,1
78
8.
INV
EN
TO
RIE
S
At J
une
30, 2
011
and
2010
, inv
ento
ries
, sta
ted
at c
ost u
sing
var
ious
met
hods
: re
tail,
firs
t-in
, fir
st-o
ut (F
IFO
), or
ave
rage
co
st, c
onsi
st o
f the
follo
win
g:
Val
uati
on
Met
hod
2011
2010
Book
stor
eR
etai
l$
854,
084
$7
10,3
93Ce
ntra
l Sto
res
Ave
rage
Cos
t10
3,7
73
138,
134
Faci
litie
s M
aint
enan
ceFI
FO16
1,57
015
2,91
3Lo
ck S
hop
FIFO
128,
460
123,
816
Oth
er in
vent
ory
FIFO
126,
904
136,
033
$1,
374,
790
$1,
261,
289
Loca
tion
Tota
l inv
ento
ry
C-14
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
29
9.L
AN
D A
ND
CA
PIT
AL
AS
SET
S, N
ET
The
depr
ecia
tion
expe
nse
for
the
fisca
l ye
ars
ende
d Ju
ne 3
0, 2
011
and
2010
was
$18
,070
,849
and
$16,
336,
531,
resp
ectiv
ely.
Follo
win
g ar
e th
e ch
ange
s in
land
and
cap
ital a
sset
s fo
r th
e ye
ar e
nded
Jun
e 30
, 201
1:
Ad
dit
ion
s/6
/30
/20
10
Tra
nsf
ers
Ret
irem
ents
6/3
0/2
01
1N
on
-dep
reci
able
Cap
ital
Ass
ets
Lan
d$1
2,77
2,59
3-
$
-
$
$12,
772,
593
Co
nst
ruct
ion
in p
rogr
ess
42,8
80,2
2220
,150
,572
63,0
30,7
94T
ota
l no
n-d
epre
ciab
le c
apit
al a
sset
s$5
5,65
2,81
5$2
0,15
0,57
2-
$
$75,
803,
387
Dep
reci
able
Cap
ital
Ass
ets
Infr
astr
uct
ure
$53,
656,
654
-$
-$
$5
3,65
6,65
4B
uil
din
gs37
7,32
8,30
95,
741,
144
-38
3,06
9,45
3F
urn
itu
re, f
ixtu
res
and
eq
uip
men
t27
,364
,557
3,17
4,34
532
3,09
730
,215
,805
Lib
rary
mat
eria
ls, a
rt c
oll
ecti
on
50,9
09,8
351,
959,
928
-52
,869
,763
Imp
rov
emen
ts60
,478
,233
9,48
7,55
7-
69,9
65,7
90T
ota
l dep
reci
able
cap
ital
ass
ets
569,
737,
588
20,3
62,9
7432
3,09
758
9,77
7,46
5
Les
s A
ccu
mu
late
d D
epre
ciat
ion
Infr
astr
uct
ure
22,0
78,6
901,
378,
414
-23
,457
,104
Bu
ild
ings
119,
195,
893
8,22
3,62
4-
127,
419,
517
Fu
rnit
ure
, fix
ture
s an
d e
qu
ipm
ent
19,3
06,9
522,
554,
877
318,
192
21,5
43,6
37L
ibra
ry m
ater
ials
, art
co
llec
tio
n36
,477
,412
1,82
6,02
8-
38,3
03,4
40Im
pro
vem
ents
15,1
31,6
304,
087,
907
-19
,219
,537
To
tal a
ccu
mu
late
d d
epre
ciat
ion
212,
190,
577
18,0
70,8
4931
8,19
222
9,94
3,23
4
Cap
ital
Ass
ets,
Net
of d
epre
ciat
ion
$357
,547
,011
$2,2
92,1
25$4
,905
$359
,834
,231
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
30
Follo
win
g ar
e th
e ch
ange
s in
land
and
cap
ital a
sset
s fo
r th
e ye
ar e
nded
Jun
e 30
, 201
0:
Ad
dit
ion
s/6
/30
/20
09
Tra
nsf
ers
Ret
irem
ents
6/3
0/2
01
0N
on
-dep
reci
able
Cap
ital
Ass
ets
Lan
d$1
2,77
2,59
3-
$
-
$
$12,
772,
593
Co
nst
ruct
ion
in p
rogr
ess
15,2
41,8
7927
,638
,343
42,8
80,2
22T
ota
l no
n-d
epre
ciab
le c
apit
al a
sset
s$2
8,01
4,47
2$2
7,63
8,34
3-
$
$55,
652,
815
Dep
reci
able
Cap
ital
Ass
ets
Infr
astr
uct
ure
$53,
656,
654
-$
-$
$5
3,65
6,65
4B
uil
din
gs37
6,52
6,48
680
1,82
3-
377,
328,
309
Fu
rnit
ure
, fix
ture
s an
d e
qu
ipm
ent
38,1
20,5
272,
985,
846
13,7
41,8
1627
,364
,557
Lib
rary
mat
eria
ls, a
rt c
oll
ecti
on
48,7
88,8
162,
121,
019
-50
,909
,835
Imp
rov
emen
ts48
,818
,558
11,6
59,6
75-
60,4
78,2
33T
ota
l dep
reci
able
cap
ital
ass
ets
565,
911,
041
17,5
68,3
6313
,741
,816
569,
737,
588
Les
s A
ccu
mu
late
d D
epre
ciat
ion
Infr
astr
uct
ure
20,7
00,2
301,
378,
460
-22
,078
,690
Bu
ild
ings
110,
929,
274
8,26
6,61
9-
119,
195,
893
Fu
rnit
ure
, fix
ture
s an
d e
qu
ipm
ent
30,6
80,1
402,
355,
262
13,7
28,4
5019
,306
,952
Lib
rary
mat
eria
ls, a
rt c
oll
ecti
on
34,8
30,4
521,
646,
960
-36
,477
,412
Imp
rov
emen
ts12
,442
,400
2,68
9,23
0-
15,1
31,6
30T
ota
l acc
um
ula
ted
dep
reci
atio
n20
9,58
2,49
616
,336
,531
13,7
28,4
5021
2,19
0,57
7
Cap
ital
Ass
ets,
Net
of d
epre
ciat
ion
$356
,328
,545
$1,2
31,8
32$1
3,36
6$3
57,5
47,0
11
10.A
RT
CO
LL
EC
TIO
NS
The
Uni
vers
ity
has
seve
ral
colle
ctio
ns o
f ar
t th
at i
t do
es
not
capi
taliz
e.
Th
e O
utdo
or
Scul
ptur
e C
olle
ctio
n is
a
publ
ic
art
colle
ctio
n di
spla
yed
thro
ugho
ut
the
enti
re
cam
pus.
Ther
e ar
e al
so
colle
ctio
ns
of
19th
and
20th
cent
ury
prin
ts
and
draw
ings
, th
e W
hitt
ingt
on
Col
lect
ion
of
Asi
an
Cer
amic
s, a
nd th
e C
hair
Col
lect
ion.
The
se c
olle
ctio
ns
adhe
re t
o th
e U
nive
rsit
y’s
polic
y to
(a)
mai
ntai
n
them
for
pub
lic e
xhib
itio
n, e
duca
tion
, or
res
earc
h;
(b)
prot
ect,
keep
un
encu
mbe
red,
ca
re
for,
an
d pr
eser
ve t
hem
; an
d (c
) re
quir
e pr
ocee
ds f
rom
the
ir
sale
to b
e us
ed to
acq
uire
oth
er c
olle
ctio
n it
ems.
The
U
nive
rsit
y’s
polic
y is
to
pe
rmit
co
llect
ions
m
aint
aine
d in
th
is
man
ner
to
be
char
ged
to
oper
atio
ns
at
the
tim
e of
pu
rcha
se
rath
er
than
ca
pita
lized
.
11.
CO
MP
EN
SAT
ED
AB
SEN
CE
S
The
accr
ued
leav
e ba
lanc
esas
of
June
30,
201
1 an
d 20
10 a
re$7
,924
,797
and
$7,
892,
235,
res
pect
ivel
y.Th
is
cons
ists
of
un
used
va
cati
on
leav
e an
d co
mpe
nsat
ory
time
earn
ed f
or e
xem
pt p
rofe
ssio
nals
an
dcl
assi
fied
staf
f. I
t al
so i
nclu
des
a pe
rcen
tage
of
earn
ed
and
unus
ed
sick
le
ave
for
exem
pt
prof
essi
onal
s an
d cl
assi
fied
staf
f.
For
repo
rtin
g pu
rpos
es,
the
enti
re
bala
nce
of
accr
ued
leav
e is
co
nsid
ered
a c
urre
nt li
abili
ty.
In 2
004,
the
Uni
vers
ity b
egan
par
ticip
atin
g in
the
V
olun
tary
E
mpl
oyee
s’
Ben
efic
iary
A
ssoc
iatio
n M
edic
al E
xpen
se P
lan
(VE
BA
-ME
P).
The
pla
n is
a
post
-ret
irem
ent
med
ical
ex
pens
e re
imbu
rsem
ent
acco
unt
avai
labl
e to
pro
fess
iona
l st
aff
empl
oyee
s of
th
e U
nive
rsity
. Th
eV
EB
A-M
EP
enab
les
the
Uni
vers
ity to
dep
osit
fund
s eq
uiva
lent
to th
e ca
sh-o
ut
of c
ompe
nsab
le u
nuse
d si
ck l
eave
at
retir
emen
t, ta
x fr
ee to
a V
EB
A tr
ust a
ccou
nt o
n th
e em
ploy
ee’s
beh
alf.
C-15
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
31
Fund
s de
posi
ted
into
a V
EB
A-M
EP
acco
unt,
as w
ell a
s th
e ea
rnin
gs o
n th
e ac
coun
ts, a
re n
ot s
ubje
ct to
fede
ral i
ncom
e or
so
cial
sec
urity
tax
es. D
urin
g fis
cal
2011
and
fis
cal
2010
, $34
,133
and
$77
,556
, res
pect
ivel
y, w
ere
cont
ribu
ted
to V
EB
A
acco
unts
by
the
Uni
vers
ity o
n be
half
of e
mpl
oyee
s.
12.
NO
TE
S P
AY
AB
LE
The
Uni
vers
ity f
inan
ces
cert
ain
land
and
equ
ipm
ent
purc
hase
s th
roug
hce
rtifi
cate
s of
par
ticip
atio
n is
sued
by
the
Was
hing
ton
Stat
eTr
easu
rer.
The
Uni
vers
ity’s
deb
t ser
vice
req
uire
men
ts fo
r th
ese
agre
emen
ts fo
r th
e ne
xt fi
ve y
ears
and
th
erea
fter
are
as
follo
ws:
Fisc
al Y
ear
Prin
cipa
lIn
tere
st20
1231
0,5
8611
7,3
5520
1324
9,0
2510
7,8
4320
1426
0,3
76
99,2
6120
1521
9,46
390
,619
2016
197
,558
82,5
04
2017
-20
2181
9,69
130
2,22
320
22-2
026
835,
00
013
7,5
3820
27-2
031
190
,00
04,
275
Tota
l3,
081
,699
$94
1,61
8Pl
us u
nam
orti
zed
pr
emiu
m20
,930
Tota
l3,
102,
629
13.
BO
ND
S P
AY
AB
LE
Bon
ds p
ayab
le c
onsi
st o
f rev
enue
bon
ds is
sued
by
the
Uni
vers
ity f
or H
ousi
ng a
nd D
inin
g Sy
stem
fac
ilitie
s an
d th
e W
ade
Kin
g St
uden
t Rec
reat
ion
Cen
ter.
Bon
ds
outs
tand
ing
are
show
n on
the
follo
win
g pa
ge.
Hou
sing
and
Din
ing
Rev
enue
Bon
dsA
s sp
ecifi
ed in
Mas
ter
Res
olut
ion
97-0
9, t
he H
ousi
ng
and
Din
ing
Syst
em R
even
ue F
und
is u
sed
topa
y op
erat
ing
expe
nses
, pri
ncip
al a
nd in
tere
st, f
und
debt
se
rvic
e re
serv
e ac
coun
ts r
equi
red
in s
ubse
quen
t ser
ies
reso
luti
ons,
pay
the
ren
ewal
and
rep
lace
men
t fu
nd
and,
if
desi
red,
ret
ire
debt
in
the
open
mar
ket.
Net
re
venu
es a
re p
ledg
ed t
o eq
ual
at l
east
125
% o
f de
bt
serv
ice.
The
Sys
tem
has
fund
ed a
res
erve
acc
ount
for
debt
se
rvic
e,
and
mai
ntai
ns
a re
new
al
and
repl
acem
ent
fund
equ
al t
o at
leas
t 5%
of
outs
tand
ing
bond
s.
The
Hou
sing
and
Din
ing
Syst
em h
as t
he f
ollo
win
g ou
tsta
ndin
g bo
nd is
sues
:
Seri
es 2
009
A a
nd B
Rev
enue
Bon
ds w
ith i
nter
est
rate
s ra
ngin
g fr
om 3
.0%
to
7.4%
and
an
aggr
egat
e
face
val
ue o
f $1
4,01
0,00
0 at
Jun
e 30
, 201
1, w
hich
is
repo
rted
net
of t
he o
rigi
nal i
ssue
pre
miu
m o
f $13
,833
.
Seri
es 2
006
Rev
enue
Bon
ds w
ith
an i
nter
est
rate
of
4% a
nd a
n ag
greg
ate
face
val
ue o
f $7,
905,
000
at J
une
30,
2011
, w
hich
is
repo
rted
net
of
the
orig
inal
issu
epr
emiu
mof
$35
,971
.
Seri
es
2005
R
even
ue
and
Ref
undi
ng
Bon
ds
with
in
tere
st r
ates
ran
ging
fro
m 3
.375
% t
o 4.
50%
and
an
aggr
egat
e fa
ce v
alue
of $
11,4
85,0
00 a
t Ju
ne 3
0, 2
011,
whi
ch i
s re
port
ed n
et o
f th
e un
amor
tized
ori
gina
l di
scou
ntan
dlo
ss o
n de
feas
ance
of $
874,
820.
Seri
es
2003
R
even
ue
and
Ref
undi
ng
Bon
ds
with
in
tere
st r
ates
ran
ging
fro
m 3
.30%
to
4.65
% a
nd a
n ag
greg
ate
face
val
ue o
f $10
,850
,000
at J
une
30, 2
011,
w
hich
is
repo
rted
net
of
the
unam
ortiz
ed o
rigi
nal
issu
e di
scou
ntan
d lo
ss o
n de
feas
ance
of $
126,
716.
Seri
es
1998
Ju
nior
Li
en
Rev
enue
an
d R
efun
ding
B
onds
with
inte
rest
rat
es r
angi
ng f
rom
4.4
% t
o 5.
5%
and
an a
ggre
gate
face
val
ue o
f $11
,605
,000
at J
une
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
32
30,
2011
, w
hich
is
repo
rted
net
of
the
unam
ortiz
ed
orig
inal
iss
ue p
rem
ium
and
loss
on
defe
asan
ce o
f $2
81,7
43?
Wad
e K
ing
Stud
ent
Rec
reat
ion
Cen
ter
Rev
enue
and
R
efun
ding
Bon
dsTh
e R
ecre
atio
n C
ente
r is
sued
the
Rev
enue
Bon
ds
Seri
es,
2002
, in
Fe
brua
ry 2
002.
Th
e bo
nds
bear
in
tere
st a
t ra
tes
of 4
% t
o 5%
and
hav
e an
agg
rega
te
face
val
ue o
f $24
,235
,000
at J
une
30, 2
011,
whi
ch is
re
port
ed
net
of
the
unam
ortiz
ed
orig
inal
is
sue
disc
ount
and
loss
on
defe
asan
ce o
f $30
0,39
5.
Adv
ance
Ref
undi
ngTh
e sc
hedu
led
liabi
litie
s as
of J
une
30, 2
011
and
2010
do
not
incl
ude
$11,
165,
000
and
10,7
25,0
00
resp
ectiv
ely,
of H
ousi
ng a
nd D
inin
g Sy
stem
rev
enue
bond
s w
hich
wer
e ad
vanc
ere
fund
ed in
Oct
ober
199
1 an
d M
ay 2
005.
In M
ay 2
004,
the
Wad
e K
ing
Stud
ent
Rec
reat
ion
Cen
ter
defe
ased
$94
5,00
0 of
rev
enue
bon
ds.
The
outs
tand
ing
bala
nces
are
$79
0,00
0an
d $8
10,0
00at
Ju
ne 3
0, 2
011
and
2010
, re
spec
tive
ly.
Gov
ernm
ent
oblig
atio
ns
in
amou
nts,
m
atur
ities
an
d be
arin
g in
tere
st r
ates
suf
ficie
nt t
o fu
nd r
etir
emen
t of
the
se
bond
s ar
e he
ld i
n ir
revo
cabl
e tr
usts
. N
eith
er t
he
asse
ts o
f the
tru
sts,
nor
the
ir o
utst
andi
ng o
blig
atio
ns,
are
incl
uded
in th
e ac
com
pany
ing
bala
nce
shee
ts.
The
debt
ser
vice
req
uire
men
ts fo
r th
e re
venu
e/re
fund
ing
bond
s fo
r th
e ne
xt fi
ve y
ears
and
ther
eaft
er a
re a
s fo
llow
s:
Fisc
al Y
ear
Prin
cipa
lIn
tere
stPr
inci
pal
Inte
rest
2012
2,68
0,00
02,
783,
678
640,
000
1,19
9,75
020
132,
785,
000
2,67
6,71
267
0,00
01,
172,
230
2014
2,89
5,00
02,
563,
847
700,
000
1,14
2,75
020
153,
025,
000
2,44
3,43
272
5,00
01,
111,
250
2016
3,14
5,00
02,
311,
835
765,
000
1,07
5,00
020
17-2
021
18,0
25,0
009,
179,
379
4,44
0,00
04,
761,
000
2022
-20
2615
,705
,000
4,84
8,73
05,
655,
000
3,53
6,25
020
27-2
031
4,40
5,00
02,
158,
550
7,22
5,00
01,
972,
750
2032
-20
343,
190,
000
479,
520
3,41
5,00
025
8,25
0
Tota
l$5
5,85
5,00
0$2
9,44
5,68
324
,235
,000
$16,
229,
230
Una
mor
tize
d pr
emiu
m/(
disc
ount
)(3
3,06
7)(2
49,9
02)
Less
una
mor
tize
d lo
ss
on d
efea
sanc
e1,
266,
542
(50,
493)
Tota
l$5
4,62
1,52
523
,934
,605
Hou
sing
and
Din
ing
Rev
enue
and
R
efun
ding
Bon
dsSt
uden
t Rec
reat
ion
Cent
er R
even
ue
Bond
s
C-16
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
33
14.
PL
ED
GE
D R
EV
EN
UE
S
The
Uni
vers
ity
has
pled
ged
cert
ain
reve
nues
, net
of s
peci
fied
oper
atin
g ex
pens
es, t
o re
pay
the
prin
cipa
l and
inte
rest
of
reve
nue
bond
s. T
he fo
llow
ing
is a
sch
edul
e of
the
pled
ged
reve
nues
and
rel
ated
deb
t:
Tota
l Fut
ure
Prop
ortio
n of
Deb
tR
even
ues
Term
of
Serv
ice
to P
ledg
edSo
urce
of R
even
ue P
ledg
edPl
edge
d *
Des
crip
tion
of D
ebt
Purp
ose
of D
ebt
Com
mitm
ent
Rev
enue
s (c
urre
nt y
r)
Hou
sing
and
Din
ing
reve
nues
,$8
5,30
0,68
3H
ousi
ng a
nd D
inin
g C
onst
ruct
ion
and
2034
84.8
%ne
t of o
pera
ting
expe
nses
bond
s is
sued
in 1
998,
re
nova
tion
of s
tude
nt20
03, 2
005,
200
6, 2
009
hous
ing
proj
ects
Stud
ent R
ecre
atio
n C
ente
r gr
oss
$40,
464,
230
Stud
ent R
ecre
atio
n C
ente
rC
onst
ruct
ion
of th
e20
3342
.6%
reve
nues
bond
s is
sued
in 2
002
Stud
ent R
ecre
atio
n C
ente
r*
Tota
l fut
ure
prin
cipa
l and
inte
rest
pay
men
ts o
n de
bt
15.
LO
NG
TE
RM
LIA
BIL
ITIE
S
Follo
win
g ar
e th
e ch
ange
s in
long
term
liab
iliti
esfo
r th
e ye
ars
ende
d Ju
ne 3
0, 2
011
and
2010
:
Add
itio
ns/
6/30
/20
10A
mor
tiza
tion
Ret
irem
ents
6/30
/20
11Cu
rren
t Por
tion
Bond
s an
d no
tes
paya
ble
Rev
enue
and
ref
undi
ng b
onds
$81
,581
,30
7$
169,
823
$3,
195,
00
0$
78,
556,
130
$3,
320
,00
0
Not
es p
ayab
le2,
924,
499
465,
038
286,
908
3,10
2,62
931
0,5
85
Net
pen
sion
obl
igat
ion
2,95
4,86
41,
400
,00
014
9,40
94,
205,
455
214,
00
0
Tota
l lon
g te
rm li
abili
ties
$
87,4
60,6
70
$2,
034
,861
$3,
631,
317
$85
,864
,214
$3,
844,
585
Add
itio
ns/
6/30
/20
09
Am
orti
zati
onR
etir
emen
ts6/
30/2
010
Curr
ent P
orti
on
Bond
s an
d no
tes
paya
ble
Rev
enue
and
ref
undi
ng b
onds
$84
,210
,20
7$
176,
100
$2,
805,
00
0$
81,5
81,3
07
$3,
195,
00
0
Not
es p
ayab
le3,
038
,959
150
,00
026
4,46
02,
924,
499
285,
216
Net
pen
sion
obl
igat
ion
2,0
31,7
381,
053
,00
012
9,87
42,
954,
864
195,
00
0
Tota
l lon
g te
rm li
abili
ties
$89
,280
,90
4$
1,37
9,10
0$
3,19
9,33
4$
87,4
60,6
70
$3,
675,
216
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
3416.
LE
ASE
S
The
Uni
vers
ity fi
nanc
es c
erta
in e
quip
men
t thr
ough
non
-can
cela
ble
oper
atin
g le
ases
. A
t Jun
e 30
, 201
1, fu
ture
pay
men
ts
unde
r th
ese
oper
atin
g le
ases
are
as
follo
ws:
17.
DE
FE
RR
ED
CO
MP
EN
SA
TIO
N
The
Uni
vers
ity,
thro
ugh
the
Stat
eof
Was
hing
ton,
of
fers
its
em
ploy
ees
a D
efer
red
Com
pens
atio
n Pl
an
crea
ted
unde
r In
tern
al R
even
ue C
ode
Sect
ion
457.
Th
epl
an,
avai
labl
e to
all
Stat
eem
ploy
ees,
per
mits
in
divi
dual
sto
def
er a
por
tion
of t
heir
sala
ry u
ntil
futu
re y
ears
. Th
e St
ate
of W
ashi
ngto
n ad
min
iste
rs t
he p
lan
on b
ehal
f of
the
Uni
vers
ity's
em
ploy
ees;
the
Uni
vers
ity d
oes
not
have
leg
al a
cces
s to
the
fund
s.
18.O
PE
RA
TIN
G E
XP
EN
SE
S B
YF
UN
CT
ION
AL
CA
TE
GO
RIE
S
In t
he S
tate
men
t of
Rev
enue
s, E
xpen
ses
and
Cha
nges
in
Net
Ass
ets,
ope
ratin
g ex
pens
es a
re d
ispl
ayed
by
natu
ral
clas
sific
atio
ns w
hich
incl
ude
sala
ries
, em
ploy
ee b
enef
its, g
oods
and
ser
vice
s, a
nd o
ther
sim
ilar
cate
gori
es.
Ope
ratin
g ex
pens
es b
y fu
nctio
nal c
lass
ifica
tion
for
the
year
sen
ded
June
30,
201
1an
d 20
10ar
e as
follo
ws:
2011
2010
Op
erat
ing
Ex
pen
ses
Inst
ruct
ion
90,0
67,4
9187
,127
,97
7R
esea
rch
4,86
1,7
335,
066
,585
Aca
dem
ic S
upp
ort
10,9
25,6
4611
,295
,613
Stu
den
t Se
rvic
es16
,166
,086
16,1
62,8
63In
stit
uti
onal
Su
ppor
t17
,585
,199
19,4
15,9
07
Ope
rati
on a
nd
Mai
nte
nan
ce o
f Pla
nt
45,2
99,9
4338
,718
,526
Sch
olar
ship
s an
d ot
her
stu
den
t ai
d17
,80
5,7
09
17,5
44,1
79
Au
xili
ary
en
terp
rise
exp
endi
ture
s41
,518
,151
42,6
57,8
10
T
otal
ope
rati
ng
expe
nse
s 24
4,22
9,95
823
7,9
89,4
60
Fisc
al Y
ear
Leas
e Pa
ymen
t20
1284
5,24
9$
2013
467
,727
2014
362,
538
2015
335,
316
2016
1
36,5
07
20
17-2
027
4
08,
231
Tota
l min
imum
leas
e pa
ymen
ts $
2,
555,
568
C-17
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
35
19.
PE
NS
ION
PL
AN
S
The
Uni
vers
ity o
ffer
s fo
ur c
ontr
ibut
ory
pens
ion
plan
s:
the
Was
hing
ton
Stat
ePu
blic
Em
ploy
ees'
Ret
irem
ent
Syst
em (
PER
S) p
lan,
the
Was
hing
ton
Stat
eTe
ache
rs
Ret
irem
ent
Syst
em (
TRS)
, and
the
Law
Enf
orce
men
t O
ffice
rs'
and
Fire
fight
ers'
Ret
irem
ent
Syst
em
(LE
OFF
) an
d th
e W
este
rn W
ashi
ngto
n U
nive
rsity
R
etir
emen
t Pla
n (W
WU
RP)
.
The
payr
oll
for
the
Uni
vers
ity e
mpl
oyee
s co
vere
d by
PE
RS
for
the
year
end
ed J
une
30,
2011
and
2010
is$3
3,25
4,22
0an
d $3
4,38
2,46
0;
the
payr
oll
for
empl
oyee
s co
vere
d by
TR
Sis
$977
,518
and
$1,0
96,6
47;
the
payr
oll
cove
red
by
WW
UR
P is
$7
2,67
2,92
7an
d $7
2,40
2,86
4;th
e pa
yrol
l for
LE
OFF
is
$76
8,01
0an
d $6
54,2
34, r
espe
ctiv
ely.
Wes
tern
W
ashi
ngto
n U
nive
rsity
R
etir
emen
t Pl
an
(WW
UR
P)
Plan
Des
crip
tion
WW
UR
P pl
an c
over
s fa
cult
y, p
rofe
ssio
nal
staf
f, an
d ce
rtai
n ot
her
empl
oyee
s.
It i
s ad
min
iste
red
by t
he
Uni
vers
ity.
The
Uni
vers
ity’
s B
oard
of
Trus
tees
is
auth
oriz
ed to
est
ablis
h an
d am
end
bene
fit p
rovi
sion
s.
Con
trib
utio
ns t
o th
e pl
an a
re i
nves
ted
in a
nnui
ty
cont
ract
s or
mut
ual
fund
acc
ount
s of
fere
d by
one
or
mor
e fu
nd s
pons
ors.
Ben
efits
from
fund
spo
nsor
s ar
e av
aila
ble
upon
se
para
tion
or
retir
emen
t at
th
e m
embe
r’s o
ptio
n.
Em
ploy
ees
have
at
all
times
a
100%
ves
ted
inte
rest
in th
eir
accu
mul
atio
ns.
Fund
ing
Polic
yE
mpl
oyee
con
trib
utio
n ra
tes,
whi
ch a
re b
ased
on
age,
ra
nge
from
5%
to
10%
of
sala
ry.
The
Uni
vers
ity
mat
ches
the
em
ploy
ee c
ontr
ibut
ions
. A
ll re
quir
ed
empl
oyer
an
d em
ploy
ee
cont
ribu
tions
ha
ve
been
m
ade.
The
Wes
tern
Was
hing
ton
Uni
vers
ity R
etir
emen
t Pl
an
(WW
UR
P) i
s a
defin
ed c
ontr
ibut
ion
pens
ion
plan
w
ith a
sup
plem
enta
l pa
ymen
t, w
hen
requ
ired
. Th
e
The
WW
UR
P co
ntri
butio
nsfo
r th
eye
ars
endi
ng J
une
30, 2
011,
and
201
0ar
eas
follo
ws:
20
112
010
Em
plo
yee
$5
,62
4,8
89
$5
,59
8,9
12U
niv
ersi
ty5
,612
,217
5,5
95
,96
3
Supp
lem
enta
l Com
pone
ntTh
e su
pple
men
tal
paym
ent
plan
de
term
ines
a
min
imum
ret
irem
ent
bene
fit g
oal
base
d up
on a
one
-tim
e ca
lcul
atio
n at
eac
h em
ploy
ee's
ret
irem
ent d
ate.
The
Uni
vers
ity m
akes
dir
ect
paym
ents
to
qual
ified
re
tiree
s w
hen
the
retir
emen
t be
nefit
pro
vide
d by
the
fu
nd s
pons
or d
oes
not m
eet t
he b
enef
it g
oal.
The
Uni
vers
ity
rece
ived
an
actu
aria
l ev
alua
tion
of
the
supp
lem
enta
l com
pone
nt o
f the
WW
UR
P du
ring
fis
cal 2
011.
Th
e pr
evio
us e
valu
atio
n w
as p
erfo
rmed
in
200
9.
The
Unf
unde
d A
ctua
rial
Acc
rued
Lia
bilit
y (U
AL)
cal
cula
ted
as o
f Ju
ne 3
0, 2
011
and
2009
was
$10,
035,
000
and
$7,2
87,0
00,
resp
ecti
vely
, an
d is
am
orti
zed
over
a 1
3ye
ar p
erio
d.
The
Ann
ual
Req
uire
d C
ontr
ibut
ion
(AR
C)
of
$1,4
00,0
00co
nsis
ts
of
amor
tiza
tion
of
th
e U
AL
($81
0,00
0),
norm
al
cost
(o
r cu
rren
t co
st)
($56
1,00
0) a
nd i
nter
est.
The
UA
L an
d A
RC
wer
e es
tabl
ishe
d us
ing
the
entr
y ag
e no
rmal
cos
t met
hod.
The
actu
aria
l as
sum
ptio
ns i
nclu
ded
an i
nves
tmen
t ra
te o
f re
turn
of
6% t
o 8%
and
pro
ject
ed s
alar
y in
crea
ses
rang
ing
from
2%
to
4%.
App
roxi
mat
ely
$72,
672,
927
and
$72,
402,
684
of t
he U
nive
rsit
y’s
payr
oll
wer
e co
vere
d un
der
this
pla
n du
ring
fis
cal
2011
an
d fis
cal
2010
, re
spec
tive
ly.
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
36
The
follo
win
g ta
ble
refle
cts
the
acti
vity
in th
e N
et P
ensi
on O
blig
atio
n fo
r th
e ye
ar e
nded
Jun
e 30
, 201
1:
PER
S, T
RS
and
LEO
FF
Plan
Des
crip
tion
The
Uni
vers
ity
cont
ribu
tes
to
PER
S,
TRS
and
LEO
FF
cost
sh
arin
g m
ulti
ple-
empl
oyer
de
fine
d be
nefit
pen
sion
pla
ns a
dmin
iste
red
by t
he S
tate
of
Was
hing
ton
Ret
irem
ent S
yste
m.
PER
S I
prov
ides
ret
irem
ent
and
disa
bilit
y be
nefit
s,
and
min
imum
ben
efit
incr
ease
s be
ginn
ing
at a
ge 6
6 to
elig
ible
non
-aca
dem
ic p
lan
mem
bers
hir
ed p
rior
to
O
ctob
er
1,
1977
.
PER
S II
an
d II
I pr
ovid
e re
tire
men
t an
d di
sabi
lity
bene
fits,
and
a c
ost-
of-
livin
g al
low
ance
, to
el
igib
le
non-
acad
emic
pl
an
mem
bers
hir
ed o
n or
aft
er O
ctob
er 1
, 19
77.
In
addi
tion
, PE
RS
III
has
a de
fined
co
ntri
buti
on
com
pone
nt,
whi
ch
is
fully
fu
nded
by
em
ploy
ee
cont
ribu
tion
s.
PER
S de
fined
ben
efit
plan
ben
efit
sar
e ve
sted
aft
er a
n em
ploy
ee c
ompl
etes
fiv
e ye
ars
of
elig
ible
ser
vice
.
TRS
I pr
ovid
es r
etir
emen
t an
d di
sabi
lity
bene
fits
, a
lum
p su
m
deat
h be
nefit
, an
d m
inim
um
bene
fits
incr
ease
s be
ginn
ing
at a
ge 6
5 to
cer
tain
elig
ible
fa
cult
y hi
red
prio
r to
Oct
ober
1, 1
977.
TR
S II
and
III
pr
ovid
e re
tirem
ent
bene
fits,
an
d co
st-o
f-liv
ing
allo
wan
ce t
o ce
rtai
n el
igib
le f
acul
ty h
ired
on
or a
fter
O
ctob
er 1
, 197
7.
In
addi
tion
TRS
III
has
a de
fined
co
ntri
butio
n co
mpo
nent
w
hich
is
fu
lly
fund
ed
by
empl
oyee
co
ntri
butio
ns.
D
efin
ed
bene
fit
plan
be
nefit
s ar
e ve
sted
aft
er a
n em
ploy
ee c
ompl
etes
fiv
e ye
ars
of
elig
ible
ser
vice
.
LEO
FF I
I pr
ovid
es r
etir
emen
t be
nefit
s an
d a
cost
of
livin
g al
low
ance
for
elig
ible
law
enf
orce
men
t of
ficer
s.
LEO
FF S
yste
m b
enef
its a
re v
este
d af
ter
an e
mpl
oyee
co
mpl
etes
five
yea
rs o
f elig
ible
ser
vice
.
The
Was
hing
ton
Stat
e Le
gisl
atur
e es
tabl
ishe
s or
am
ends
be
nefit
pr
ovis
ions
fo
r PE
RS,
TR
S,
and
LEO
FF.
Add
itio
nal
info
rmat
ion
conc
erni
ng p
lan
desc
ript
ions
and
ben
efit
pro
visi
ons
is i
nclu
ded
in a
C
ompr
ehen
sive
A
nnua
l Fi
nanc
ial
Rep
ort
publ
icly
av
aila
ble
from
the
Was
hing
ton
Syst
em D
epar
tmen
t of
Ret
irem
ent
Syst
em,
P.O
. B
ox 4
8380
, O
lym
pia,
W
A, 9
8504
.
Fund
ing
Polic
yE
ach
bien
nium
, the
Off
ice
of t
he S
tate
Act
uary
, usi
ng
fund
ing
met
hods
pre
scri
bed
by s
tatu
te,
dete
rmin
es
actu
aria
lly
requ
ired
em
ploy
ee
and/
or
empl
oyer
co
ntri
butio
n ra
tes
for
PER
S, T
RS,
and
LE
OFF
pla
ns,
exce
pt w
here
em
ploy
ee c
ontr
ibut
ion
rate
s ar
e se
t by
st
atut
e.
All
empl
oyer
s ar
e re
quir
ed t
o co
ntri
bute
at
the
leve
l es
tabl
ishe
d by
St
ate
la
Bala
nce
as o
f Jun
e 30
, 20
09
$2,
031
,738
Ann
ual R
equi
red
Cont
ribu
tion
FY
101,
053
,00
0Pa
ymen
ts to
Ben
efic
iari
es F
Y10
(129
,87
4)Ba
lanc
e as
of J
une
30, 2
010
2,95
4,86
4A
nnua
l Req
uire
d Co
ntri
buti
on F
Y11
1,40
0,0
00
Paym
ents
to B
enef
icia
ries
FY
11(1
49,4
09)
Bala
nce
as o
f Jun
e 30
, 20
11$
4,20
5,45
5
C-18
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
37
The
requ
ired
con
trib
utio
n ra
tes
expr
esse
d as
a p
erce
ntag
e of
cur
rent
yea
r co
vere
d pa
yrol
l at J
une
30, 2
011
follo
w:
Empl
oyee
Uni
vers
ity
Plan
I6.
00
%5.
31%
Plan
II
3.90
%5.
31%
Plan
III
5% -
15%
5.31
%TR
S Plan
I6.
00
%6.
14%
Plan
II
3.36
%6.
14%
Plan
III
5% -
15%
6.14
%
Plan
II
8.46
%5.
24%
PER
S
LEO
FF
The
requ
ired
con
trib
utio
ns fo
r th
e ye
ars
endi
ng J
une
30, 2
011
and
2010
are
as fo
llow
s:
2011
2010
Empl
oyee
$1,
466,
592
$1,
518,
542
Uni
vers
ity
1,7
38,9
911,
794
,47
1
Empl
oyee
28,1
2232
,253
Uni
vers
ity
26,7
1132
,890
Empl
oyee
65,0
6655
,337
Uni
vers
ity
66,2
02
56,3
84
PER
S
TRS
LEO
FF
All
requ
ired
em
ploy
er a
nd e
mpl
oyee
con
trib
utio
ns h
ave
been
mad
e.
20.O
TH
ER
P
OST
E
MP
LO
YM
EN
T
BE
NE
FIT
S
(OP
EB
)
Hea
lth
care
an
d lif
e in
sura
nce
prog
ram
s fo
r em
ploy
ees
of
the
Stat
e of
W
ashi
ngto
n ar
e ad
min
iste
red
by t
he W
ashi
ngto
n St
ate
Hea
lth C
are
Aut
hori
ty (
HCA
). T
he H
CA
cal
cula
tes
the
prem
ium
am
ount
s ea
ch y
ear
that
are
suf
ficie
nt t
o fu
nd t
he
Stat
e-w
ide
heal
th a
nd l
ife i
nsur
ance
pro
gram
s on
a
pay-
as-y
ou-g
o ba
sis.
Th
ese
cost
s ar
e pa
ssed
thr
ough
to
in
divi
dual
st
ate
agen
cies
ba
sed
upon
ac
tive
empl
oyee
hea
dcou
nt;
the
agen
cies
pay
the
pre
miu
ms
for
activ
e em
ploy
ees
to t
he H
CA.
The
agen
cies
may
al
so c
harg
e em
ploy
ees
for
cert
ain
high
er c
ost
opti
ons
elec
ted
by th
e em
ploy
ees.
Stat
e of
W
ashi
ngto
n re
tiree
s m
ay
elec
t co
vera
ge
thro
ugh
stat
e he
alth
and
life
ins
uran
ce p
lans
, fo
r
whi
ch t
hey
pay
less
tha
n th
e fu
ll co
st o
f th
e be
nefit
s,
base
d on
thei
r ag
e an
d ot
her
dem
ogra
phic
fact
ors.
The
heal
th
care
pr
emiu
ms
for
activ
e em
ploy
ees,
w
hich
ar
e pa
id
by
the
agen
cy
duri
ng
empl
oyee
s’
wor
king
car
eers
, su
bsid
ize
the
“und
erpa
ymen
ts”
of
the
retir
ees.
A
n ad
ditio
nal
fact
or
in
the
OPE
B
oblig
atio
n is
a p
aym
ent
that
is
requ
ired
by
the
Stat
e Le
gisl
atur
e to
re
duce
th
e pr
emiu
ms
for
retir
ees
cove
red
by M
edic
are
(an
“exp
licit
subs
idy”
). F
or fi
scal
20
11,
this
am
ount
was
$18
3pe
r re
tiree
elig
ible
for
pa
rts
A a
nd B
of
Med
icar
e, p
er m
onth
. Th
is i
s al
sopa
ssed
thro
ugh
to S
tate
age
ncie
s vi
a ac
tive
empl
oyee
s ra
tes
char
ged
to th
e ag
ency
.
Ther
e is
no
form
al S
tate
or
Uni
vers
ity p
lan
that
un
derl
ies
the
subs
idy
of
retir
ee
heal
th
and
life
insu
ranc
e.A
n ac
tuar
ial
stud
y pe
rfor
med
by
th
e
WE
STE
RN
WA
SHIN
GT
ON
UN
IVE
RSI
TY
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
S Ju
ne 3
0, 2
011
and
2010
38
Was
hing
ton
Off
ice
of t
he S
tate
Act
uary
cal
cula
ted
the
tota
l O
PEB
obl
igat
ion
of t
he S
tate
of
Was
hing
ton
at
July
1,2
011.
The
Act
uary
cal
cula
ted
the
OPE
B o
blig
atio
n ba
sed
on
indi
vidu
al
stat
e em
ploy
ee
data
, in
clud
ing
age,
re
tirem
ent
elig
ibili
ty,
and
leng
th o
f se
rvic
e.
The
prob
abili
ty o
f an
empl
oyee
of a
giv
en a
ge a
nd le
ngth
of
serv
ice
retir
ing
and
rece
ivin
g O
PEB
ben
efits
is
base
d on
sta
tew
ide
hist
oric
al d
ata.
Sinc
e su
ffic
ient
spec
ific
em
ploy
ee d
ata
and
othe
r ac
tuar
ial
data
are
no
t ava
ilabl
e at
leve
ls b
elow
the
stat
ewid
e le
vel,
such
am
ount
s ha
ve n
ot b
een
dete
rmin
ed n
or r
ecor
ded
in
the
Uni
vers
ity’
s fin
anci
al s
tate
men
ts.
The
Uni
vers
ity
was
bill
ed a
nd p
aid
appr
oxim
atel
y $1
8.7
mill
ion
for
acti
ve
and
reti
ree
heal
th
care
ex
pens
es d
urin
g fis
cal
2011
and
$16.
6m
illio
n in
fis
cal 2
010.
21.
RIS
K M
AN
AG
EM
EN
T
The
Uni
vers
ity
part
icip
ates
in a
Sta
teof
Was
hing
ton
risk
m
anag
emen
t se
lf-in
sura
nce
prog
ram
. Pr
emiu
ms
to
the
Stat
ear
e ba
sed
on
actu
aria
lly
dete
rmin
ed p
roje
ctio
ns a
nd i
nclu
de a
llow
ance
s fo
r pa
ymen
ts o
f bot
h ou
tsta
ndin
g an
d cu
rren
t lia
bilit
ies.
Th
e U
nive
rsity
se
lf-in
sure
s un
empl
oym
ent
com
pens
atio
n fo
r al
l em
ploy
ees.
In
addi
tion
, su
ffic
ient
in
sura
nce
cove
rage
fo
r pr
oper
ty c
asua
lty
loss
on
the
resi
denc
e ha
llsan
d th
e W
ade
Kin
g St
uden
t R
ecre
atio
n C
ente
ris
mai
ntai
ned
in a
ccor
danc
e w
ith
the
Hou
sing
and
Din
ing
Syst
eman
d W
ade
Kin
g St
uden
t R
ecre
atio
n C
ente
rM
aste
r B
ond
Res
olut
ions
.
The
Uni
vers
ity
has
been
nam
ed i
n se
vera
l la
wsu
its.
W
hile
the
fin
al o
utco
me
of t
he l
awsu
its
cann
ot b
e pr
edic
ted
wit
h ce
rtai
nty,
it
is
th
e U
nive
rsit
y’s
opin
ion
that
the
ult
imat
e lia
bilit
y w
ill n
ot m
ater
ially
af
fect
the
fina
ncia
l sta
tem
ents
.
The
Uni
vers
ity
part
icip
ates
in
the
Stat
e in
sura
nce
prog
ram
and
is
inde
mni
fied
and
will
be
reim
burs
ed
by t
he S
tate
for
any
cla
ims
paid
rel
ated
to
thes
e la
wsu
its.
22.C
OM
MIT
ME
NT
S
Goo
ds a
nd s
ervi
ces
for
oper
atin
g an
d ca
pita
l pro
ject
s,co
ntra
cted
for
but n
ot y
et r
ecei
ved,
are
con
side
red
com
mitm
ents
at
year
end
.Th
e am
ount
of t
hese
com
mit
men
ts a
t Jun
e 30
, 201
1an
d 20
10ar
e:
20
112
010
$4
,58
9,2
01
$4
,59
9,5
05
78
5,1
25
35
9,3
20
14,3
98
,49
93
3,5
77
,52
3
$19
,77
2,8
25
$3
8,5
36
,34
8
Cap
ital
pro
ject
s
To
tal c
om
mit
men
ts
Op
erat
ing
Res
earc
h
23.J
OIN
T V
EN
TU
RE
In f
isca
l 20
10,
the
Uni
vers
ity
part
icip
ated
in
the
form
atio
n of
a
not-
for-
prof
it
corp
orat
ion
titl
ed
Wes
tern
C
ross
ing
Dev
elop
men
t C
orpo
rati
on
(WC
DC
).
W
CD
C
was
fo
rmal
ly
inco
rpor
ated
pu
rsua
nt
to
the
arti
cles
of
in
corp
orat
ion
date
d O
ctob
er 7
, 20
09 a
nd i
s a
501(
c) (
3) c
orpo
rati
on
unde
r th
e In
tern
al R
even
ue c
ode
of 1
986,
am
ende
d.
The
five
mem
ber
Boa
rd
of
Dir
ecto
rs
incl
udes
a
mem
ber
of th
e U
nive
rsit
y B
oard
of T
rust
ees
appo
inte
d by
the
Uni
vers
ity
Boa
rd o
f Tr
uste
es,
the
Pres
iden
t of
th
e U
nive
rsit
y,
a m
embe
r of
th
e C
omm
issi
on o
f th
e Po
rt o
f B
ellin
gham
app
oint
ed b
y th
e C
omm
issi
on o
f th
e Po
rt,
the
Exe
cuti
ve D
irec
tor
of t
he P
ort
of B
ellin
gham
, and
a f
ifth
boar
d m
embe
r w
ho w
asap
poin
ted
by a
maj
orit
y vo
te o
f th
e ot
her
four
boa
rd m
embe
rs w
hoar
e no
t af
filia
ted
wit
h ei
ther
ent
ity.
The
boa
rd o
f di
rect
ors
may
in
the
futu
re a
llow
oth
er W
ashi
ngto
n go
vern
men
ts o
r
C-19
NO
TE
S T
O T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
SJu
ne
30, 2
011
an
d 2
010
39
educ
atio
nal i
nsti
tuti
ons
to b
ecom
e m
embe
rs u
nder
suc
h te
rms
and
cond
itio
ns a
s th
ey d
eter
min
e. T
he p
urpo
se o
f the
jo
int
vent
ure
is t
o he
lp f
acili
tate
the
tim
ely
deve
lopm
ent
of n
ew f
acili
ties
on
the
Bel
lingh
am w
ater
fron
t. T
his
inve
stm
ent i
s no
t ref
lect
ed o
n th
e U
nive
rsit
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APPENDIX D Form of Bond Counsel Opinion
April 30, 2012 Western Washington University Bellingham, Washington Citigroup Global Markets Inc. Los Angeles, California
Re: Western Washington University Student Recreation Fee Revenue and Refunding Bonds, 2012 - $24,385,000 Ladies and Gentlemen: We have acted as bond counsel to Western Washington University (the “University”) and have examined a certified transcript of the proceedings taken in the matter of the issuance by the University of its Student Recreation Fee Revenue and Refunding Bonds, 2012, in the aggregate principal amount of $24,385,000 (the “Bonds”), issued pursuant to Resolution No. 2012-01 of the University, adopted on February 10, 2012 (the “Bond Resolution”) for the purpose of providing funds to refund certain outstanding student recreation fee revenue bonds of the University, make capital improvements to the recreation facilities of the University and to pay issuance costs. Capitalized terms used herein which are not otherwise defined shall have the meanings given such terms in the Bond Resolution. The Bonds are subject to redemption prior to their stated maturities as set forth in the Official Statement dated April 10, 2012. Regarding questions of fact material to our opinion, we have relied on representations of the University in the Bond Resolution and in the certified proceedings and on other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation. Based on the foregoing, we are of the opinion that, under existing law: 1. The Bonds have been legally issued and constitute valid and binding revenue obligations of the University, both principal thereof and interest thereon being payable solely out of a special fund of the University known as the “Recreation Center Bond Fund” (the “Bond Fund”), except to the extent that the enforcement of the rights and remedies of such owners of the Bonds may be limited by laws relating to bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application affecting the rights of creditors, by the application of equitable principles and the exercise of judicial discretion. 2. The University has irrevocably bound itself to set aside and pay into the Bond Fund and the reserve account therein (the “Common Reserve Fund”) out of the SRC Fee and Recreation Center Revenues or from such other money as may be provided for such purpose amounts necessary to pay the principal of and interest on the Bonds as the same become due. 3. The University has pledged to set aside from the Revenue Account out of the Recreation Center Revenues and the SRC Fee and to pay into the Bond Fund the various amounts required by the Bond Resolution to be paid into and maintained in such Fund within the times provided by the Bond Resolution. To the extent more particularly provided by the Bond Resolution, the amounts so pledged to be paid from Available Funds into the Bond Fund shall be a lien and charge thereon equal in rank to the lien and charge upon such Recreation Center Revenues and the SRC Fee of the amounts required to pay and secure the payment of any revenue bonds hereafter issued on a parity with the Bonds and superior to all other liens and charges of any kind or nature. The University has reserved the right to issue bonds in the future having a parity of lien on Recreation Center Revenues and the SRC Fee on the terms set forth in the Bond Resolution. 4. Interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest
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on the Bonds is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in the preceding sentence is subject to the condition that the University comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The University has covenanted to comply with all applicable requirements. Failure to comply with certain of such covenants may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. The University has not designated the Bonds as “qualified tax-exempt obligations” under Section 265(b)(3) of the Code.
Except as expressly stated above, we express no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition, and various withholding requirements.
We have not been engaged nor have we undertaken to review the accuracy, completeness or sufficiency of the official
statement or other offering material related to the Bonds (except to the extent, if any, stated in the official statement), and we express no opinion relating thereto or relating to the undertaking of the University to provide ongoing disclosure pursuant to Securities and Exchange Commission Rule 15c2-12.
This opinion is given as of the date hereof, and we assume no obligation to update, revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.
Very truly yours, K&L GATES LLP
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APPENDIX E Book-Entry Transfer System
The information in this section concerning the Depository Trust Company, New York, New York (“DTC”) and DTC’s book-entry system has been obtained from sources that the University believes to be reliable, but the University takes no responsibility for the accuracy thereof. Beneficial Owners (as hereinafter defined) should therefore confirm the following with DTC or the Participants (as hereinafter defined). For purposes of this section, references to the Issuer mean the University, and references to Agent mean the Registrar. For the purposes of this Official Statement, the term “Beneficial Owner” includes the person for whom the Participant acquires an interest in the Bonds.
1. DTC will act as securities depository for the Bonds. The Bonds will be issued as fully-registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each maturity of the Bonds in the principal amount of such maturity and will be deposited with DTC.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing services. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, and trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of the Bonds under the DTC system, in denominations of $5,000 or any integral multiple thereof, must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
4. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
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5. When notices are given, they will be sent by the Registrar to DTC only. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
6. Redemption notices will be sent to DTC. If less than all of the Bonds are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the University as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the University or the Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Registrar, or the University, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or any other nominee as may be requested by an authorized representative of DTC) is the responsibility of the University or the Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the University and the Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered.
10. Issuer may decide to discontinue use of the system of the book-entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.