California State University, Fresno Foundation · For the Year Ended June 30, 2015 Audit Committee: Mr. Kyle Stephenson Ms. Carol Chandler Ms. Cathy Frost Hon. Annette LaRue Hon

California State University, Fresno

Foundation

2014-15Annual Report

Approved September 18, 2015

CALIFORNIA STATE UNIVERSITY, FRESNO FOUNDATION ANNUAL REPORT

TABLE OF CONTENTS

Page Number

Corporate Information 1 - 3

lndependent Auditors' Report 4- 5

Statements of Financial Position 6

Statements of Activities 7

Statements of Cash Flows 8

Notes to the Financial Statements 9 - 28

Schedule of Expenditures of F ederal Awards 29 - 3 3

General Fund Administration Cost Center 34

Independent Auditors' Report on Intemal Control Over Financial Reporting and on 35 - 36 Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

lndependent Auditors' Report on Compliance. for Each Major Program and on 37- 38 lntemal Control Over Compliance Required by OMB Circular A-133

Schedule of Findings and Questioned Costs 39 - 40

Summary Schedule of Prior Audit Findings 41

Additional Information Restated for California State University Reporting 42- 46

California State University Fresno, Foundation Corporate lnformation

Far the Year Ended June 30, 2015

BOARD OF GOVERNORS: Mr. Oarius Assemi Mr. Nat DiBuduo Or. Joseph I. Castro Ms. Caral Chandler Ms. Octavia Oiener Ms. Cathy Frost Or. Eric Hanson Mr. R. Stephen Heinrichs Mr. John E. Horstmatm Ms. Maurine Jones Mr. Hal Kissler Hon. Annette LaRue Mr. Claude C. Lava! III Or. William M. Lyles Ms. Oebra Nalchajian-Cohen Mr. Ken Newby Mr. Omel Nieves Hon. Robert H. O li ver Ms. Vinci Ricchiuti Ms. Yrma Rico Mr. Bill Smittcamp Mr. Richard F. Spencer Mr. Ray Steele, Jr. Mr. Kyle Stepbenson l\t1r. Kevin Sweeney Ms. Kristine Walter Ms. Oora Westerlund Or. Rick Whitten Mr. A. Emory Wishon III

CORPORATE OFFICERS: Mr. Ray Steele, Jr. Ms. Vinci Ricchiuti Mr. Hal Kissler Or. Joseph I. Castro

EXECUTJVE STAFF: Ms. Oebbie Astone l\t1r. Keith Kompsi Mr. John Melikian

Executive Committee: Mr. Ray Steele, Jr. Ms. Vinci Ricchiuti Mr. Hal Kissler Or. Joseph I. Castro l\t1r. A. Emory Wishon III Or. Eric Hanson

Fresno, Califomia Fresno, Califomia Fresno, Califomia Selma, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Hillsborough, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Pasadena, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Clovis, Califomia Fresno, Califomia Clovis, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia Fresno, Califomia

Chair Vice Chair Treasurer Secretary

Executive Oirector Oirector of Foundation Financial Services Staff Counsel

Chair Vice Chair Treasurer Secretary Immediate Past Chair Member at Large

i I

California State University Fresno, Foundation Corpora te I nformation

For the Year Ended June 30, 2015

Audit Committee: Mr. Kyle Stephenson Ms. Carol Chandler Ms. Cathy Frost Hon. Annette LaRue Hon. Robert H. Oliver Ms. Vinci R.icch.iuti

Budget Committee Ms. Vinci R.icch.iuti 1\ilr. Claude C. Lava! III Dr. William M. Lyles Mr. Ken Newby Mr. Ray Steele, Jr. Mr. Kevin Sweeney Dr. R.ick Wh.itten

Development Committee Ms. Debra Nalchajian-Cohen Mr. Nat DiBuduo Ms. Maurine Jones 1\ilr. Omel Nieves 1\ilr. Bill Smittcamp Ms. Y rma Ric o Ms. Kristine Walter Ms. Dora Westerlund

Governance Committee Mr. Claude C. Lava! III Ms. Octavia Diener Dr. Eric Hanson tvlr. John Horstmann Mr. Ken Newby Hon. Robert Oliver Ms. Kri stine Walter

lnvestment Committee tvlr. R. Stephen Heinrichs Mr. Darius Assemi Mr. Hal Kissler Mr. William M. Lyles Mr. Richard Spencer Mr. A. Emory Wishon III

Chair

Chair

Chair

Chair

Chair

2

California State University Fresno, Foundation Corporate lnformation

For the Year Ended June 30, 2015

CORPORATE DATA

Executive Offices

Auditors

lnvestment Advisors

3

49 1 O N. Chestnut A ve Fresno, CA 93 726- 1852 Telephone: (559) 278-0850

Moore Grider & Company Certified Public Accountants 325 E. Sierra A ve. Fresno, CA 93710-3707 Telephone: (559) 440-0700

Goldman Sachs 555 Califomia St. 45'h Floor San Francisco, CA 94104 Telephone: (4 15) 393-7500

A Partuersllip l uc/udiug rlccouutaucy Corporatious

Richard L. Holland, C.P.A.

Thomas L. Bell, C.P.A., :\(C{IUI\I<IOCY C'-'rJ"'r.IIIOil

Denise S. H u rst, C. P.A.

Kenneth j. Labendeira, C.P.A., -\ccuunt.lncv Corpuratmn

Pamcla ]. Gallemore, C.P.A., o\cC"(>unt.l"'-."\' Corf'\"t".liUJn

Karl L. Noyes, C.P.A., \cccuntiJn~v Corpordtion

Cory j. Bell, C. P.A.

Kendall K. Wheeler, C. P.t\.

Tom Collins, C.P.A.

Necia Wollenman. C.P.A.

Rena R. Avedikian, C.P.A.

Kelli D. Steele. C.P.A.

julie B. Fil! more, C.P.A.

Carri e M. Wiebe, C.P.A., M.B.A.

:-.<ora E. Cro\\", C.P.A.

' icholas Medeiros, C.P.A.

Oscar Espinoza, C.P.A.

Lisa Brown, C.P.A., C.F.E.

~- jerome Moore, C.P.A. Rd1reU

Robert E. Grider, C.P.A. Rl'tunt

MG Moore Grider & Con1.pany

Cert ifi~d Public rlccOimlallls

INDEPENDENT AUDITORS' REPORT

Board of Govern ors California State University, Fresno Foundation Fresno, California

Report on tbe F inancial Statements

We have aud ited the accompanying financial statements of Cal i forn ia State University, Fresno Foundation, which comprise the statements of financial position as of June 30, 2014 and 2015, and the related statements of activ ities and cash flows far the years then ended, and the related notes to the financial statements.

Management's Responsibility for tfle Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal contra! re levant to the preparation and fair presentation of financ ial statements that are free from material misstatement, whether due to fraud or error.

A uditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted aur audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audi t to obtain reasonable assurance about whether the financial statements are free of material m i sstatemen t.

An audi t involves performing procedures to obtain audit ev idence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor' s judgment, including the assessment of the risks of material m isstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers intemal contra ! re levant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not far the purpose of expressing an opinion on the effectiveness of the entity's intemal contro l. Accord ingly, we express no such opinion. An aud it a lso includes evaluating the appropriateness of accounting po licies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the fin ancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion .

4 325 E. S ie n a I Fresn o, CA 93710 I 559 440-0700 fax 559 440-0600

www.rnooregrider.corn

Opinion

ln our opinion, the financial statements referred to above present fairly, in all material respects, the fmancial position of Califomia State University, Fresno Foundation as of June 30,2014 and 2015 , and the changes in its net assets and its cash tlows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Otlzer Matters

Other Information

Our audit was conducted for the purpose of forrning an opm1on on the financial statements as a whole. On pages 29 to 33, the accompanying schedule of expenditures of federal awards as requ ired by Office of Management and Budget Circular A-133 , Audits of States. Loca! Governrnents and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the financial statements. The accompanying supplementary information on page 34 is presented for purposes of additional analysis and is also not a required part of the financial statements. The infor:mation reflected on pages 42 to 46 is presented as required by the Chancellor of the Califomia State University. Such inforrnation and the schedule of expenditures offederal awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The inforrnation bas been subjected to the auditing procedures applied in the audit of the fi nanc ial statements and certain additional procedures, including comparing and reconciling such inforrnation directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other add itional procedures in accordance with auditing standards generally accepted in the United States of America. ln our opinion, the inforrnation is fairly stated, in a l! material respects, in relation to the financial statements as a whole.

Otber Reporting Req uired by Government Auditing Standards

ln accordance with Govemment Auditin2: Standards, we have also issued our report dated September 18, 20 15, on o ur consideration of Califom ia State Un iversity, Fresno Foundation 's intern al contra! o ver fmancial reporting and on our tests of its compl iance with certain provisions of laws, regulations, contracts, grant agreements and other matters . The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to prov ide an op inion on internal control over financial reporting or on compliance. That report is an integral part of an aud it perforrned in accordance with Government Auditing Standards in considering California State University, Fresno Foundation's internal control over financial reporting and compli ance.

Fresno, California September 18, 2015

5

CALIFORJ'IIA STATE UNIVERSITY, FRESNO FOUNDATION T HE CALI FORNIA STATE UNIVERSITY AUX ILIARY ORGANIZATION

STA TEMENTS OF FINANCIAL POSITION AT JUNE 30201 4AND2015

2014 TOTAL

ASSETS Current Assets:

Cash and cash equivalents (Note I, Pg. 9) s 5 1, 197,825

Receivables: Grants and contracts 5,166,397 Pledges receivable (Note 2) 1,6 11,482 Other accounts receivable 7,463,042 Notes receivable, net (Note 3) 15, 171

Total Receivables 14,256,092

Prepaid expenses 113,697

Total C urrent Assets 65,567,6 14

Long-term investments, at market (Note 4) 142,636,694

Non-current receivables: Pledges receivable (Nete 2) 4,353,258

Allowance for uncollectibles ( 180,000) Net pledges receivable 4,173,258

Notes receivable, net (Note 3) 290,136 Total non-current receivables 4,463,394

Land and improvements 520,563

Fixed Assets: Equipment 544,000 Less accumulated depreciation (398,978)

Net Fixed Assets 145 ,022 TOTAL ASSETS $ 213,333,287

L IAB1LIT IES AND NET ASSETS

Liabilities: Current liabilities:

Accounts payable s I ,573,600 Notes payable (Note 9) o Accrued salaries and benefits payable 962,562 Receipts in excess of expenditures on specific sponsored programs 4,477,385

Accrued compensated balances 51,887 Unitrust agreement liabilities- current portion (Note 8) 36,5 11 Annuity agreement liabilities - current portion (Note 8) 3,656

Total Current Liabilit ies 7,105,60 I

Long-tem1 liabilities: Accounts payable 255,626 Notes payable (Note 9) 2,000,000 Annuity agreement liabilities- long-term portion (Note 8) 59,449 Agency accounts 2,47 I ,499

T otal Liabilities 11,892,175

Net Assets: Unrestricted (deficit) 944,227 Unrestricted-board designatcd reserves (Note I O) 3,792,350 Temporarily restricted (Note l i ) 104,913,482 Permanently restricted (Note 12) 91,79 1,053

Total Net Assets 201,441.11 2 TOTAL LIAB I LITIES & NET ASSETS $ 213,333,287

2015 TOTAL

$ 4 1,215,259

8,076,266 1,504,080 7,848,235

18,403 17.446,984

112,789

58,775,032

146,464,090

4,37 1, 102 ( 180.000)

4 ,191, 102 225,937

4,417,039

520,563

567,663 (437,690)

129,973 $ 210,306,697

s 1,974,506 2,000,000 1,042,994

3,787,75 1 57,555 35,003 4,073

8,90 1,882

27 1,734 o

56,226 2,629,598

11,859,-t-tO

(I, 755,878) 3,962,359

96,803,934 99,436,842

198,447,257 s 21 0,306,697

The accompanying no tes a re an integral part of the financial statements

6

CALI FORN!A STATE UNIVERS ITY, FRESNO FOUN DATION THE CALIFORNIA STATE UNIVERSITY AUX LLLARY ORGAI'IIZATION

STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30,2014 AI'I D 20 15

201 4 TOTAL

Changes in Unrestricted Net Assets: Revenues, Gains and Other Support:

Federal grants and contracts s 22,105,751 State grants and contracts 4,887,898 Other grants and contracts 4,964,89 1 Lndirect cost recovery from sponsored programs 2,306,432 Handl ing fees 365,9 19 lnvcstment income 4.531,419 Realized/unrealized gai ns (losses) 1,706,456 Endowment admin istrative fees 1,561,000 Gift assessment fees (Note I, Pg. I O) 327,029 lncome for campus support I 0,517,066 Other 2,533 Net assets released from restrictions:

expiration of donor-imposed restrict ions (Note li ) 15.372.845 T otal Unr estrictcd Revenues, Gains a nd Other Support 68,649,239

Expcnscs and Losses: Lnstruction 12,058,855 Public service 13,908,759 Research 5,990,926 Special Programs 2,903, 186 Campus Support 18,6 15.826 Student grants and scholarships 3,460,925 Management and general (Note 7) 2.360,375 Endowment administrat ive fees 1,740,262 Donations to agency accounts (surplus allocation) 2.433,333

Total Expenses and Losses (Note I 5) 63.472.447 Changcs in Unrestrictcd Net Assets 5. 176,792

Transition Obligation (Note 17) Amortized transition obligation 9.132

lncreasc (Dccrcase) in Net Assets aftcr Remaining Transition Obligation s 5,185,9?4

Changes in Tem.Qorarilv Restricted Net Assets: Gain (loss) on investments:

Realized s 1,959, 124 Unrealized 6,062,899

Lnvestment income 6,400,515 Contributions -Net 5,294,228 Non-operating expense 3,266, 167 Net assets released from rest rict ions (Note l i ) (15,372.845)

Changes in T emporarily Rcstricted Net Asscts 7,6 l0.088

Changes in Permanentlv Restricted Net Assets: Contributions 7,266,554 Change in value of split interest' agreemen.ts (Note 8) ( 1,2 17)

Chan ges in Permanently Restricted Net Asscts 7.265.337

Total lncreasc (Decreasc) in Net Assets 20,061,349 Net Assets at Bcginning of Year 181,379,763 Net Assets at End of Year s 20 1,44 1,112

2015 TOTAL

s 22,177,564 5,819,564 5, 146, 171

2,41 0,344 33 1,374

1,098,439 ( 1,205,806) 1,56 1,000

o 8,906,823

4 ,955

20,487.399 66,737,827

12,503,62 1 14,2 12,97 1 6,426,707 2,562,31 1

21,940,487 3,747,415 2,464,988 1,561,000 3.857,553

69,277,053 (2.539.2?6)

9,132

s (2.530,094)

s 3,692,507 (9,474,960) 9,625,773 6,534,484 2,000,046

(20,487,399) (8. 1 09,549)

7,644,28 1 1,508

7,645,789

(2,993,855) 20 I ,441 ,112

s 198.447,257

The accompanying noles are an inlegral part of the financial s tatements

7

CALIFORNIA STATE VNIYERSITY, FRESNO FOVNDATION TI-IE CALIFORNIA STATE VNIYERSITY AUXILIARY ORGAN IZATION

STATEMENTS OF CASH FLOWS

Cash flows from operating activities: lncrease (decrease) in net assets

FOR TI-IE YEARS ENDED JUNE 30,2014 AND 20 15

Adjustments to reconcile increase (decrease) in net assets to net cash provided (used) by operating activit ies: Depreciation Bad debt expense Forgiveness of notes receivable Contributions restricted for long-term investment Net reali zed and unrealized (gains) and losses on investments Changes in value of split interest agreements Changes in assets and liabilities:

Grants, contracts and accounts receivable Pledges receivable Prepaid expenses Accounts payable Accrued salaries and benefits Accrued compensated balances Receipts in excess of expenditures Agency accounts

Net cash provided (used) by operating activities

Cash flows from investing activities: Purchase of investments Proceeds from sal es and maturities of investments lncrease in notes receivable Payments received on notes receivable Acquisition of capital assets

Net cash provided (used) by investing activities

Cash flows from financing activities: Contributions restricted for long-term investment Payments on split interest agreements

Net cash provided (used) by financing activities

Net increase (decrease) in cash Cash at beginning ofyear Cash at end of year

Supplemental disclosure of cash tlow information Cash paid for interest

2014 li TOTAL

$20,061,349

27,070 o

67,619 (7,201,318)

(14,87 1,143) 42,272

198,972 1,555,404

78,475 ( I ,452,915)

186,008 9,563

500,703 472,660

(325,281 )

(8,488,723) 7,132,872 (305,092)

71 ,251 (29,704)

(1,619,396)

7,201 ,3 18 (58,268)

7,143,050

5,198,373 45,999,452

$51,197,825

$20,000

The accompanying notes are an integral part of the financial statements 8

20 15 TOTAL

($2,993,855)

38,712 5,000

146,6 11 (8,021 ,583) (I ,075, 725)

53,954

(3,295,062) 84,558

908 417,015

80,432 5,668

(689,634) 158,099

( 15,084,902)

(9,669,784) 6,918,113 (125,272)

39,629 (23,663)

(2,860,977)

8,021,583 (58,268)

7,963,3 15

(9,982,566) 51,197,825

$41,2 15,259

$20,000

NOTES TO THE FINANCIAL STATEMENTS

CALIFORNIA STATE UNIVERSITY, FRESNO FOUNDATION


AS OF AND FOR THE YEARS ENDED J UNE 30, 2014 AND 2015

Note 1 - Organization and Significant Accounting Policies

Organization

The California State University, Fresno Foundation (the " Foundation") was incorporated on June 19, 1931. It is a recognized aux.iliary of the California State University and is organized and operated exclusively for educational purposes as a tax-exempt organization under the provisions of section 50 I (e )(3) of the Internal Revenue Code and section 23 701 (d) of the California Revenue and Taxation Code. The Foundation was formed and is operated exclusively to receive, hold, invest, and administer property and to make expenditures to or for the benefit of California State University, Fresno (the "University"). The Foundation is supported primarily by revenues generated from the recovery of indirect costs from federal, state and other grants, fees on gifts, donations and other sources and investment earnings.

The financial statements include the accounts of the Foundation and its wholly owned subsidiary, New California Ventures, LLC (the "LLC"), which is a single member lirnited liability company. The Foundation provided the initial capital contribution when the LLC was formed in 2012. The LLC provides services in exchange for an equity interest in start-up or ex.isting companies, and supports the commercialization of research initiatives connected to the University. The net assets of the LLC are considered to be temporarily restricted as the funds are not available for the general operations of the F oundation.

Basis of Accounting

The Foundation maintains its accounting records and prepares its fmancial statements on the accrual basis of accounting.

Use of Estima tes

The preparation of financial statements in confomlity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basis of Presentation

Financial statement presentation is in accordance with generally accepted accounting principles for not-forprofit organizations. Under this guidance, the Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Cash and Cash Eguivalents

Cash and cash equivalents consist of cash held in banks and unrestricted highly liquid investments. The Foundation maintains all of its cash and cash equivalents in accounts held with a large national bank ($1 ,260,070 and $1,533,629 for the years ended June 30, 2014 and 2015, respectively), in the State of Califomia Loca! Agency lnvestment Fund (LAIF) ($6,813 and $6,830 for the years ended June 30, 2014 and 2015, respectively), and within a balanced investment portfolio with Goldman Sachs ($47,212,095 and $37, I 13,265 for the years ended June 30, 20 14 and 20 15 , respectively).

The Federal Depository lnsurance Corporation insures cash balances held in banks up to $250,000. At June 30, 20 14 and 20 15 the Foundation 's uninsured cash balances held in banks totaled $2,4 71 ,3 74 and

9


$2,42 1,107, respectively. Management believes that the Foundation 's diversificat ion of cash deposits, combined with prudent business practices help assure that, in accordance with 45 Code of Federal Regulations, Part 74.2 1 (b )(3), any Federal deposits in excess of insurance or collateralization are adequately safeguarded.

Accounts Receivable

Accounts receivable are stated at unpaid balances. Receivables are considered impaired if full principal payments are not received in accordance with the contractual terms. It is the Foundation's policy to write off uncollectible accounts receivable when management determines the receivable will not be collected. The Foundation maintains a Reserve for Contingency - Sponsored Programs against which such write-offs can occur.

Investments

Investments are primarily held in corporate equity securities, bonds, and U.S. government bonds and are reported at fair value based upon quoted market price. Any temporary difference between cost and fair value of an investment is presented as a separate component of change in net assets. The specific identification method is used to determine realized gains and losses on inves.tments.

The Foundation maintains master investment accounts for its donor-restricted and board-designated endowments. Realized and unrealized gains and losses from investments in the master accounts are allocated arumally to the individual endowments based on the relationship of the market value of each endowment to the total market value of the master investment accounts, as adjusted for additions to or deductions from those accounts.

Fixed Assets

Fixed assets are retlected on the financial statements at cost. Depreciation is computed using the straightline method based upon estimated useful !ives of three to ten years. The Foundation capitalizes all expenditures in excess of $5,000 for property and equipment at cost.

Indirect Cost Rate

The Foundation provides accounting and administrative services for grants and contracts entered into by the Foundation on behalf ofthe University. In many cases, tbese agreements provide for the reimbursement of indirect costs based on a percentage of tbe direct costs ofthe grants and contracts.

The University and the Foundation make every attempt to obtain from the granting agencies the federally approved maximum indirect cost reimbursement rate of 40.0% of the total direct costs of the grant and contract agreements. However, few grant and contract agreements allow for the maximum federal rate. The Foundation's actual average indirect cost re imbursement rate for grants and contracts was 7.8% for both years ended June 30,20 14 and 20 15.

Donor Imposed Restrictions

All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that a re designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted donations. Realized and unrealized gains (losses) from securities transactions in the Endowment Fund are recognized as temporarily restricted for those purposes specified by the donors for income from the endowed gift. The Foundation collects reasonable administrative fees on contributions as applicable law permits. Donors have the option for exemption from or reduction of the adrninistrati ve fees and the Foundation has complied with any request from donors to exercise these options. The Foundation Board of Governors votes annually on the amount of the endowment admin.istrative fees. Currently the admjn.istrative fees cannot exceed 2.5% of the fai r market value of the funds at June 30 of each year. ·

The Foundation Board of Govemors authorized that a 5% gi ft assessment be placed on a li cash gifts. Effective December I , 20 13, the Board authorized the elimination of the gift assessment.

10


Pledges Receivable

Unconditional pledges receivable from donors that are expected to be collected within one year are recorded at net realizable value. Long-terrn pledges receivable that are expected to be collected in a period beyond o ne year are recorded at a di scount using the present value of their estimated future cash fl ows. The discounts on long-terrn p1edges receivable are computed using risk-free interest rates applicable to the period in which the pledges to g ive are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are not included as support unti1 the conditions are substantially met. Management bas determined that an allowance of $180,000 for both 2014 and 20 15 for uncollectible pledges receivable is sufficient based on historical levels of write offs.

Contributed Property and Eguipment

Donated property and equipment are recorded at fair market value at the date of donati on. If donors stipu1ate how long the assets must be used or how the proceeds from the sal e of the property or equipment are to be used, the donations are recorded as restricted contributions. In the absence of such stipulations, donations of property and equipment are recorded as unrestricted contributions.

lncome Taxes

The Foundation is incorporated as a non-profit California corporation and is exempt from income taxes under Intemal Revenue Code Section 50 1(c)(3) and California Revenue and Taxation Code Section 2370ld .

New Califomia Ventures, LLC is a Califomia limited liability company whose sole member is the Foundation. The LLC is a disregarded entity for federal income tax purposes and thus not subject to federal income tax. For Califomia tax purposes, the LLC is subject to an annual tax and LLC fee.

Tax retums are fi led in U.S. federal and state of California jurisdictions. Tax returns remain subject to examination by the U.S. federal j urisdiction for three years after the retum is fi led and for four years by the Califomia jurisdiction. There are currently no tax years under examination.

Note 2- Pled~es Receivable

At June 30, 2014 and 2015, Pledges Receivable includes the following unconditional pledges to give:

Pledges Receivable 2014 2015

Unconditional pledges to give before unamortized discount and $ 7,546,035 $ 7,398,710 allowance for uncollectible pledges

Less: Unamortized discount ( 1,58 1 ,295) (I ,523,528)

Subtotal 5,964,740 5,875,182

Less: Allowance for uncollectible pledges (1 80,000) ( 180,000)

Net unconditional pledges to give $ 5.784.740 $ 5.695.1 82

Current portion $ 1,611,482 $ 1 5Q4 Q8Q

Long tem1 portion $ 4 ,353.258 $ 4.37 1 102

Amounts due in:

Less than one year $ 1,724,285 $ 1,609,365

O ne to fi ve years 5,726,725 5,748,37 1

More than fi ve years 95,025 40,974

Total $ 7.546.035 $ 7.398,71Q

11

I


The average discount rate used to calculate the present value o f promises to give expected to be collected in periods beyond one year was 7% for both fi scal years 2014 and 20 15. Total gross pledges received were $995,526 and $2,356,305 for the years ended June 30,2014 and 20 15, respectively. Pledges receivable are considered a nonrecurring Level 3 asset under the fair value hierarchy estab1ished by ASC 820. For pledges receivable that are due within one year, carrying amount is a reasonable estimate of fai r va1ue. For pledges receivable that are due in more than one year, fair value is estimated at the present value of estimated future cash flows, using a 7% discount rate.

Pledges receivable activity are as follows: 2014 2015

Beginning of year balance $ 9,570,985 $ 7,546,035

New pledges 995,526 2,356,305

Pledge payments received (3,020,4 76) (2,498,630)

Write-offs (O) (5,000)

End of year balance $ 7,546,Q3~ $ 7,398,71Q

Note 3 - Notes Receivab1e

The Foundation maintains a Student Loan Fund that allows students to borrow funds as approved by the University's Office of Financial Aid. The Foundation did not write off any uncollectable student loans for both fiscal years 2014 and 20 15. Management believes 'the current reserve level is adequate for future uncollectible student loans. In September 2012, the Foundation Board ofGovemors modified an existing Joan program to allow students to have their 1oans forgiven if they perform a service 1earning program structured by the respective Dean's Office. Student loans forgiven for the years ended June 30, 20 14 and 20 15 totaled $67,6 19 and $ 146,6 11 , respectively.

Notes receivable for the years ended June 30,2014 and 20 15 are as follows:

Note Receivable (lnterest Rate) 2014 2015

Student loans ( 1%- 12%) $ 307,807 $ 246,840

Subtotal notes receivable 307,807 246,840

Less allowance for uncollectible sh1dent loans (2,500) (2,500)

Net notes receivable $ 305,307 $ 244,340

Current portion $ 15, 171 $ 18,403

Long term portion $ 290,136 $ 225,937

12


Note 4 - Long-Term Investments

Generally accepted accounting princip1es require the Foundation to report investments in securities at fair va1ue and to recognize and report rea1ized and unrealized gains or losses in the statements of activities.

Unrealized gains or 1osses occur when the fair value· of investments increases or decreases as of June 30'h each year. Realized gains or 1osses occur wben an investment is sold. However, the amount ofthe realized gain or loss reflected on tbe statements of activities shou1d not include any unrealized gain or loss recognized in prior years. With the large number of securities comprising long-term investments, it is impractical for the Foundation to determine the amount of unreal ized gain or 1oss previously recognized on securities so1d during the years ended June 30,2014 and 2015. Recognizing rea1ized gains (losses) and the unrea1ized gains (1osses) in the current period does properly account for the required adjustment to reflect investments at fair value as of June 30, 20 14 and 20 15.

Long-term investment activity at fair value for the year ended June 30, 20 14 is as follows;

Long-term investments Total

Long-term investments at beginning ofyear $ 126,409,700

Additions 7,229,149

Amounts wi thdrawn for:

Scho1arships and donor restricted purposes (7 ,240,616)

Gift assessments ( 179,262)

Total amounts withdrawn (7,419,878)

Retum on investments:

Dividends and interest (net of investment fees of I ,546,579 $639,706)

Realized gains (losses) 5,485,254

Unrealized gains (losses) 9,385,890

Total retum on investments 16,4 17,723

Long-term investments at end of year $ 142,636,624

13


Long-tenn investment activity at fa ir value for the year ended June 30, 20 15 is as follows:

Long-term investments Total

Long-tenn investments at beginning of year

Additions

Amounts withdrawn for:

Scholarships and donor restricted purposes

G ift assessments

Total amounts withdrawn

Retum on investrnents:

Dividends and interest (net of investrnent fees of $648,626)

Realized gains (losses)

Unrealized gains (losses)

Total retum on investrnents

Long-tenn investments at end ofyear

Long-tenn investrnents at fair value consist ofthe fo llowing:

$ 142,636,694

8,049,492

(6,918,113)

(O)

(6,918, 113)

1,620,292

7,463,039

(6,387 ,3 14)

2,696,017

$ 146,464.Q2Q

' Long-term investments 2014 2015

Money market $ 5,898,881 $ 584,427

Cornmon stocks 69,360,935 69, 172,325

Bonds 45,358,446 48,606,942

Mutual funds 1,645,356 1,72 1,725

Life income contracts 467,999 436, 159

Alternative investrnents 19,905,077 25,942,5 12

Totallong-tenn investrnents, at market $ 142 636 694 $ 146,~64 Q2Q

Note 5- Fair Va1ue Measu rements

Generally accepted accounting principles establishes a framework for measuring fa ir value. FASB ASC 820 applies to all financial statements that are being measured and reported oo a fai r value basis.

FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liabi lity in an orderly transaction between market participants at the measurement date. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fai r value. The hierarchy give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Levet 1 measurements) and the 1owest priority to measurements involving signifi cant observable inputs (Levet 3 measurements). The three levels ofthe fai r va1ue hierarchy are as follows:

Leve1 1 - Inputs are quoted market prices (unadjusted) in active markets for identical assets or liabilities. Valuations for assets and liabi lities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or 1iabilities.

14


Levet 2 - Inputs other than quoted prices within Levet I that are observable, either di rectly or indirectly. Valuations for assets and liabi lities traded in less active dealer or broker markets. Yaluations are obtained from third party pricing services for identical or similar assets or liabili ties.

Levet 3 - lnputs are unobservable. Yaluations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounts cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Levet 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

The asset's or liabil ity's fai r value measurement level within the fair value hierarchy is based on the lowest levet of any input that is significant to the fair value measurement. Yaluation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of tbe valuation methodologies used to measure fair value. There have been no changes in the methodologies used at June 30, 2014 and 20 15.

Cash and cash equivalents and money market accounts: The carrying amount is a reasonable estimate of fair value.

Common stocks: Valued at the closing price reported on the active markets on which the individual securities are traded.

Bonds: Yalued at the price quoted within custodial statements.

Mutual Funds: Valued at the net asset value of shares held.

Alternative lnvestments: Based on the net asset values provided by the fund manager and other market factors. Other factors include, but are not limited to, estima tes of liquidation value, prices of recent transactions in the sa me or simi lar funds, current performance, future expectations of the particular investment, and changes in market outlook and the financing environment.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Foundation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

15

i NOTES TO THE FINANCIAL STATEMENTS

The table below presents the level within the fair value hierarchy at which cash and investments are measured on a recurring basis at I un e 30, 2014:

Recurring Total Leve11 Level 2 Leve13

Cash and cash equivalents $ 51 ,197,825 $ 45,453,903 $ 5,743,922 $

Long-term investments:

Money market $ 5,980,365 $ 5,980,365 $ o $

Common stocks 69,446,920 69,446,920 o Bonds 45,632,3 15 45,632,3 15 o Mutual funds I ,645,356 I ,645,356 o

o

o o o o

Altemative investments 19,93 1,738 o 19,477,020 454,718

Totallong-tem1 investments, at market $ 142,636,694 $ 122,704,956 $ 19,477,020 $ 454,7 18

Total $ 123.834,512 $ 168. 158,859 $ 25.220.242 $ 45~,7 18

The tab1e below presents the level within the fair value hierarchy at which cash and investments are measured on a recurring basis at June 30, 2015 :

Recurring Total Levet 1 Levet 2 Levet 3

Cash a nd cash equ ivalents $ 41 ,2 15,259 $ 35,977,92 1 $ 5,237,338 $ o Long-term investments:

Money market $ 67 1,956 $ 67 1,956 $ o $ o Common stocks 69,26 1,304 69,26 1,304 o o Bonds 48,84 1~506 48,841 ,506 o o Mutual funds 1,721,725 1,72 1,725 o o Altemative investments 25,967,599 4 ,736,918 19,601,826 1,628,855

Totallong-term investments, at market $ 146,464,090 $ 125,233,409 $ 19,601,826 $ 1,628,855

Total $ 187 679,342 $ 161.2 11,330 $ 2~.832.164 $ 1,6?8,855

The foll owing schedule shows changes in Level 3 Assets for the years ending June 30, 2014 and 2015:

2014 2015

Level 3 Assets at beginning ofyear $ 67,096 $ 454,7 18

Transfer in (out) ofLevel3 387,622 1, 174,137

Purchases, issuances, and settlements o o Total gains or losses (realized/unreal ized) o o

Level 3 Assets at the end of the year $ 454,7 18 $ 1,628.855

The Foundation recognizes transfers into and out of levels within the fair value hierarchy at June 30 of each fiscal year. During the year ended June 30, 2014, $387,622 was transferred from Level I to Level 3 due to investment allocations made by thc Foundation's discretionary investment advisors. During the year ended

16

NOTES TO THE FINANCIAL ST ATEMENTS

June 30, 20 15, $ 1,174,1 3 7 was transferred from Level 1 to Level 3 due to investment allocations ma de by the Foundation's discretionary investment advisors.

The amount oftota1 gains or 1osses for the years ended June 30,2014 and 2015 included in net assets (all permanently restricted) attributable to the change in unrealized gains or losses relating to assets sti ll beld at the reporting date was $0 for both years.

Note 6 - Endowment

Effective July I, 2008, the Foundation adopted the provisions established by accounting literature for Endowments of Not-for-Profit Foundations: Net Asset Classification of Funds Subj ect to an Enacted Yersion of the Uniform Prudent Management of lnstitutional Funds Act, and Enhanced Disclosures forAl! Endowment Funds. The accounting literature provides guidance on the net asset classification of donor restricted endowment funds for a not-for-profit Foundation that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIF A) and also requires disclosures about endowment funds, both donor restricted endowment funds and board-designated endowment funds.

The Foundation's endowment consists of approximately 660 individual funds established for a variety of purposes. lts endowment includes both donor-restricted endowment funds and funds designated by the Board of Governors to function as endowments. As required by GAAP, net assets associated with endowment funds, including funds designated by the Board of Governors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

Interpretation of Relevant Law

The Board of Governors of the Foundation has interpreted the California Uniform Prudent Management of Institutional Funds Act (UPMIF A) as requiring the preservation of the fair value of the original g ift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (e) accumulations to the pennanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.

The remaining portion of the donor-restricted endowment fund tbat is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the standard of prudence prescribed by UPMIF A. In accordance with UPMIF A, the Foundation considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

(l) Tbe duration and preservation ofthe fund (2) The purposes of the Foundation and the donor-restricted endowment fund (3) General economic conditions ( 4) The possible effect of inflation and deflation (5) The expected total retum from income and the appreciation of investments (6) Other resources of the Foundation (7) The investment policies of the Foundation.

17


Endowment Net Asset Composition by Type of Fund

Endowment net assets consist o fthe following at June 30, 20 14:

Temporarily Permanently Unrestricted Restricted Restricted Total

Donor-restricted endowment funds $ (2, I 0 1,882) $ 57,960,253 $ 90,54 1,12 1 $ 146,399,492

Board-designated endowment funds O O O O

Total endowed net assets $ (2.101.882) $ 57.960.25 3 $ 90 541. 12 1 $ 146.399 492

Endowment net assets consist of the following at June 30, 2015:


Donor-restricted endowment funds $ (3,307,689) $ 54,978,468 $ 98,204,3 12 $ 149,875,09 1

Board-designate.d endowment funds O O O O

Total endowednetassets $ (3.307.689) $54.978.468 $98.204.312 $ 149.875.091

Changes in E ndowment Net Assets

The following schedule shows changes in endowment net assets for the year ending June 30, 2014:


Endowment net assets, July 1, 2013 $ (3,808,338) $ 50,333,975 $ 83,332,904 $ 129,858,541

Activity in pooled endowment assets:

lnvestment return:

Investment income 8,061,411 o 8,061,4 11

Net appreciation 8,022,023 o 8,022,023

Total investment retum 16,083,434 16,083,434

Contributions * (42, 105) 7,209,434 7,167,329

Appropriation of endowrnent assets for expenditure (7,4 12,6 15) o (7 ,4 I 2,6 15)

Net increase in pooled endowment assets 8,628,7 14 7,209,434 I 5,838, 148

Net increase (decrease) in other endowment net assets * 704,020 (I ,2 17) 702,803

Restoration of prior endowment fund deficiency 1,706,456 (I , 706,456) o o

Endowment net assets, June 30, 20 14 $ (2, I O I ,882) $ 51.260,253 $ 2Q,51 1' 12 1 $ I 46,392,122

* Note: Some contributions shown with.in pooled endowment activity relate to other endowrnent net assets (including pledges receivable).

18


The following schedule shows changes in endowment net assets for the year ending June 30, 2015:


Endowment net assets, July I, 20 14 $ (2, I O 1 ,882) $ 57,960,253 $ 90,541,121 $ 146,399,492

Activity in pooled endowment assets:

Investment retum:

Investment income 8,363, 173 o 8,363 ,173

Net appreciation (5,782,453) o (5,782,453)

Total investment retum 2,580,720 2,580,720

Contributions * 5,000 7,661,683 7,666,683

Appropriation of endowment assets for expendih1re (6,91 0,063) o (6,910,063)

Net increase (decrease) in pooled endowment assets (4,324,343) 7,66 1,683 3,337,340

Net increase in other endowment net assets * 136,751 1,508 138,259

Increase in endowment fund deficiency (I ,205 ,807) 1,205,807 o o

Endowment net assets, June 30, 2015 $ (3.307 ,682) $ ~4,978,468 $ 28 2Q4,312 $ 149,875,Q21

* Note: Some contributions shown within pooled endowment activity relate to other endowment net assets (including pledges rec~ivable).

Description of Amounts Classified as Permanently Restricted Net Assets and Temporarily Restricted Net Assets

2014 2015 Permanently Restricted Net Assets

T he portion of perpetual endowment funds that is $ 90,54 1,121 $ 98,204,312 required to be retained permanently either by explicit donor stipulation or by UPMIF A

Total endowment funds classified as permanently r estricted net assets $ 90 54 1, 121 $ 98.204,3 12

Tempot·arily Restricted Net Assets

Term endowment fund s

The portion of perpetual endowment funds subject to a time restriction under UPMIFA:

Without purpose restrictions

With purpose restrictions

Total endowment fund s class ified as temporarily restricted new assets

19

$ o $

o 57,960,253

o

o 54,978,468

$ 57,960,253 $ 54,978 468


Endowment Funds with Defici encies

From time to time, the fair value of assets associated with individual donor restricted endowment funds may fall below the level that the donor or UPMIFA requires the Foundation to retain as a fund of perpetual duration. In accordance with GAAP, deficiencies of this nature that are reported in unrestricted net assets as of June 30, 2014 and 20 15 are $2,101,882 and $3,307,689, respectively. Therefore, $ 1,706,456 of the deficiency was restored duri ng the year ended June 30, 2014, while the defi ciency increased by $1,205,807 during the year ended June 30, 2015. These deficiencies resulted from unfavorable market fluctuations tbat occurred shortly after the investment of new permanently restricted contributions and continued appropriation for certain programs that was deemed prudent by the Board of Govemors.

Return Objectives and Risk Parameters

Tbe Foundation has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasi ng power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Foundation must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under tlús policy, as approved by the Board of Govemors, the endowment assets are invested in a manner that is intended to produce resu1ts consistent with an overall objective of safety of principal combined with capital appreciation. Since the Foundation has long-term investment goals, some risk of principal is acceptable to achieve lúgher overall retums. The investments of the funds, which include equi ties, should exceed the rate of inflation by four percent ( 4%), o ver full market cycles.

Strategies Employed for Achieving O bjectives

To satisfy its long-term rate-of-retum objectives, the Foundation relies on a total retum strategy in whjch investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Foundation targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term retum objectives within prudent risk constraints.

Spending Policy and How the Investment Objectives Relate to Spending Policy

The Foundation Board each year approves an appropriation for distribution from its endowment to Uruversity programs after considering the analysis and input from its Investment and Budget Comnú ttees who, in tum, consider factors contained within UPrvrrF A, as well as the needs of Uruversity programs that benefit from the distribution. The distribution is measured as a percentage of its endowment fund 'sa ve rag e fair value over the prior 12 quarters through the calendar year-end preceding the fiscal year in which the distribution is planned. ln establishing this policy, the Foundation considered the long-term expected retum on its endowment. Accordingly, over the long term, tbe Foundation expects the current spending policy to allow its endowment to grow consistent with its retum objectives and risk parameters. T his is consistent with the Foundation 's objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide additional real growth through new gifts and investment retum. The total endowment payout for the years ended June 30, 2014 and 2015 (as a percentage of the endowment's average market value for the twelve quartcrs ending the preceding December 3 1), was 5.57% and 5.28%, respectively.

Note 7 - Management Services

The Foundation receives corporate management and fi nancial services from the Califorilla State Uruversity, Fresno Association, Inc. ("Association") through a Management Services Agreement (MSA). The Foundation's gross adnúrustrative fecs paid to the Association for the years ended June 30,2014 and 2015 were $674, 150 and $698,944, respectively.

20


The Foundation also reimburses the Association for the salaries and benefits of the Foundation Financial Services staff. The amount reimbursed for the years ended June 30, 2014 and 20 15 were $974,509 and $1,000,848 , respectively. Benefit reimbursement includes current year defined benefit pension contributions and retired employees' health benefit payments for persons emp loyed by the Association but perfomúng services for the Foundation. The disclosures relating to these plans are not considered significant to the Foundation's financial statements.

Note 8 - Uni trust a nd Annuitv Agreement Liabilities

Unitrust Agreement consists of the following:

Unitntst Agreement Na. 2

On June 15, 1998, a unitrust agreement was estab1ished by donors under which stock was contributed to a trust for which the Foundation is actiog as trustee and will receive the residual value of trust assets upon the death of the donor. The stock was sold during fiscal year 1999 and the Foundation received net proceeds of approx._imately $106,000. The annuity liabil ity was recorded at approx._imate ly $74,000 and beginning on September 30, 1998, quarterly payments of $2,120 to the donor commenced under the terms of the unitrust agreement. In May 2002, an additional gift of stock was received from the donor and the stock was sold in June 2002 with an initia1 fair value of$506,000. An additional annuity liabi1ity was recorded io the amount of approx._imately $307,000 and beginning on September 30, 2002, additional quarterly payments of $10,120 to the donor commenced. The li fe ofUnitrust Agreement No. 2 was originally estimated to be 13.9 years.

Financial information related to Unitrust Agreements is as follows for the year ended June 30, 2014:

Total

lnitial Fair Value

Initial Net Contrihution·\

218,362

6/30114 Liability

6/30/14 Present Fair Value Value 8

-6/30/14

:-.let Value e -$ 612,021 $ 218,362 $ 436,760 $ 36,51 1 $ 400,249

Fisca12014 Change in Present

Split V aluc Unitrusl Intercsl Discount Paymenl V aluc 0 Rat e Rat e

l' o -(I ,217)

Financial information related to Unitrust Agreements is as follows for the year ended June 30, 2015:

Total

Inilial Fair Value

lnitial Net Contribulion·\

218,362

6/30/15 Liability

6/30/15 Present Fair Value Value 0

--6/30/15

Net Value e

'. s 612,021 s 218,362 $ 409,917 s 35,003 s 374,914

Fiscal2015 Changc in Present

Split Value Unilrust lntcrest Discount Payment V a luc 0 Rat e Rat e

1: l'' -1,508

A The initial net contribution equals the initi al fair va lue less the initial liability present value at the date of the donation to the Foundation.

8 The liability measured at the present value of expected future cash flows to be paid to the benefi ciary.

e The net value equals the fair value less the liability present value. This rcpresents the net asset value to the Foundation as of June 30.

21

Remain-ing Life vcars E

Rcmain-ing Life vears E


0 A revaluation of unitrust assets and corresponding liabilities at June 30 resulted in a change in pem1anently restricted endowment fund net assets, which was included as a change in the value of split interest agreements on the Statements of Activities.

E Based on li fe expectancy tables included in the Intemal Revenue Code.

F The unitrust agreement provides that the donors, during their lifetimes, shall be paid an amount equal to the percent ofthe net fair market value of the assets ofthe trust (as indicated in the above table), based on a revaluation at the beginning of each taxable year.

Annuity Agreements consist ofthe following:

Annuitv Agreement No. 7

On November 19, 2004, a deferred charitable gift aru1uity agreement was established by donors under which cash was contributed. The Foundation will receive the residual value of assets upon the death of the donors. The aru1uity liability was irú tially recorded at approximately $16,789. Payments in the amount of $456.25 a re made to the donors on a quarterly basis, beginning on March 3 1, 2009. As this is a Charitable Gift Aruluity, the Foundation remains liable to continue making payments to the donors during the ir lifetime, regardless of the remaining liability balance. The li fe of Annuity Agreement No. 7 was originally estimated to be 19.3 years. Wells Fargo is acting as adrrúrústrator for this charitable gift annuity.


On October 25, 2005, a deferred charitable gift annuity agreement was established by donors under which cash was contributed. The Foundation will receive the residual value of assets upon the death of the donors. The annuity liabili ty was initially recorded at approximate1y $ 15,932. Payments in the amount of $468.75 a re made to the donors on a quarterly basis, beginning on March 3 1, 201 O. As this is a Charitable Gift Annuity, tbe Foundation remains liable to continue making payments to the donors during their lifetime, regardless of the remaining liability balance. T he li fe of Annuity Agreement No. 8 was originally estimated to be 18.7 years. Wells Fargo is acting as adrninistrator for this charitable gift annuity.

Annuitv A greement No. 9

On November 30, 2005, a cbaritab1e gift annuity agreement was established by donors under which cash was contributed. Tbe Foundation will receive the residual value of assets upon the death of the donors. The annuity liabil ity was initially recorded at approx.imate.ly $4,3 11. Payments in the amount of $212.50 are made to the donor on a quarterly basis, beginning on March 31, 2006. As tb.is is a Charitable Gift Annuity, the Foundation remains liable to continue making payments to the donor during their lifetime, regardless of the remaining liabili ty balance. T he life of Annuity Agreement No. 9 was originally estimated to be 8.3 years. Wells Farga is acting as adrrúnistrator for this charitable gift annuity.

Annuitv A greement No. I O

On October 13, 2006, a deferred chari table gift annuity agreement was established by donors under wl1ich cash was contributed. The Foundation wil l receive the residual value ofassets upon the death oftbe doriors. The annuity liability was initially recorded at approximately $ 18,665. Payments in the amount of $481.25 are made to the donors on a quarterly basis, begiru1ing on September 30, 20 I O. As this is a Charitable Gift Aruluity, the Foundation remains liable to continue making payments to the donors during their lifetime, regardless of the remaining liabi lity balance. The li fe of Aruluity Agreement No. I O was originally estimated to be 18.2 years. Wells Fargo is acting as administrator for this charitable gift annuity.


On October I I , 201 I, a deferred charitable gift ammity agreement was establi shed by donors under which cash was contributed. The Foundation will receive the residual value of assets upon the death of the donors. The annuity liabil ity was irútially recorded at approx.imately $ 16,975. Payments in the amount of$393.75 will be made to the donors on a quarterly basis, beginning on January 3 1, 2014. As this is a Charitable Gift Aruluity, the Foundation remains liable to continue making payments to the donors during their lifetime, regardless o f the remaining liability balance. The life of Aruluity Agreement No. 12 was originally estimated to be I 5.3 years. Wells Fargo is acting as administrator for thi s chatitable g ift annuity.

22


Financial information related to Annuity Agreements is as follows for the year ended June 30, 20 14:

Fiscal 2014 6/30/14 Changc in Present Rc-

lnilial lnitial ~el Liability 6/30/14 Split Value Annuity maining Fair Contri- 6/30/14 Present Net lntercst Discount Pavment Li fe \'aluc bution \ Fair \'aluc Value 8 Value e Value 0 Rat e R-ate E ~

Nos. 7, 8, lO& 100,000 35,547 153,098 62,255 90,843 2.485 7.0% 7.3% 13.3

12

No. 9 10,000 5,689 7,56 1 850 6,711 (374) 7.0% 8.5% .3

Total $ 11 0,000 $ 41 ,236 $ 160,659 s 63, 105 s 97,554 $ 2, 11 1

Financial infonnation related to Annuity Agreements is as foll ows for the year eoded June 30, 201 S: Fisca12015

6/30/15 Changc in Present Re-lnitial lnitial Net Liability 6/30/15 Split Value Annuity maining Fair Contri- 6/30/15 Present Net lnterest Discount Pavment Li fe

Value bution ~ Fair Value Value 8 Value e Value 0 Rat e R-ate E ~

Nos. 7, 8, IO& 100,000 35,547 146,165 59,449 86,7 16 2,806 7.0% 7.3% 12.3

12

No. 9 10,000 5,689 6,731 850 5,881 o 7.0% 8.5%

Total $ ll 0,000 $ 41,236 $ 152,896 $ 60,299 $ 92,597 $ 2,806

A The initia l net contribution equals the initial fair value less the initial liabili ty present value at the date o f the donation to the Foundation.

9 The liability measured at the present value of expected future cash flows to be paid to the benefi ciary.

e The net value equals the fair value less the liab ility present value. This represents the net asset value to the Foundation as of June 30. 0 Revaluatioo of annuity assets and corresponding liabilities at June 30 resulted in a change in pem1anently restricted endowment fund net assets, which was included in contribution income on the Statements of Activi ties.

E The annuity agreement provides that the donors, during their lifetimes, shall be paid an amount equal to the percent of the net fair market value of the assets (as indicated in the above table), based on the valuation as of the da te of conveyance to the Foundation.

F Based on li fe expectancy tables included in the lntemal Revenue Code.

Note 9 - Notes Pavable

A summary of notes payable as of June 30, 2014 and 20 15, is as follows:

Notes Payable 2014 2015

1.0% Trinity Health Corporation, unsecured, payable in its entirety on or before June 30, 2016, with interest paid annually each September 30'h

Less portion considered current Long term portion

23

$

$

2,000,000 o

?,000,000

$

$

2,000,000 2,000,000

o

o


Maturities of long term debt for the next five years are as follows:

Total $ 2.000.000

Interest accrued was $20,000 during the years ended June 30,2014 and 2015.

Note I O- Net Assets: Unrestricted - Board Designated Reserves

Unrestricted net assets include amounts designated by the Foundation' s Board of Governors for specific uses. These amounts consist ofthe following:

Reserve for Contingency - General

The purpose of this reserve is to co ver tbe general cash tlow needs of the Foundation to maintain financial viability.

Reserve for Contingency - Sponsored Programs (Designated Fund)

The Foundation is the primary fiscal agent for California State Univers ity, Fresno, which administers researcb and special projects funded by Federal agencies. The Federal ru les and regulations are very complex and are subject to audit. As such, certain expenditures may be d isallowed as a result of an audit. This reserve provides funds for any disallowed costs. Included in "Net Assets, Unrestricted-Board Designated Reserves" are the following:

Board Designated Reserves 2014 2015

General Fund:

Reserve for Contingency - General $ 2.232.153 $..__2_.277.347

Designated Fund:

Support for campus tablet initiative (DISCOVERe) $ 6QQ,QQQ $ ,2QQ QQQ

Support for Lyles College ofEngineering $ 50Q QQQ $ Q

Reserve for Contingency- Sponsored Programs $ 46Q,l21 $ 13.2,012

Support for Remodel Science Laboratories $ Q $ ,2QQ,QQQ

Support for Advancement $ Q $ 25Q,QQQ

Tota l Board Designated Reserves $ 3)2235Q $ 3.262352

Management believes that as of June 30, 2014 and 20 15 the reserve balances are sufficient for their intended purposes.

24


Note 11 - Tempor arilv R estricted Net Assets

Temporarily restricted net assets at June 30, 20 14 and 201 5 consist of the following:

2014 2015

Campus Programs $ 4 1,653,731 $ 36,404,400

Loans and Scho1arships 5,023,479 5,205,374

Endowments 57,960,253 54,978,468

New Cali fo rnia Ventures, LLC 276,0 19 2 15,692

$ IQ4 9 13,482 $ 26.803,934

Net assets re leased by incurring expenses satisfying the restricted purposed:

2014 2015

Campus Programs $ 8,098,760 $ 13,033,664

Loans and Scbo1arships 565,490 680,423

Endowments 6,708,595 6,773,3 12

$ 15,372,845 $ 20,487,329

Note 12 - P erma nentlv Restricted Net Assets

Permanent1y restricted net assets at June 30, 20 14 and 2015 consist of the following:

Loans and Scholarships

Endowment assets

Note 13 - Non-Cash Transactio ns

2014 2015

$ 1,249,932 $

90,541,12 1

1,232,530

98,204,312

$ 91,79 1,053 $ 29.436,842

During the year ended June 30, 2014, the Foundation donated to the University equipment and building construction costs of $ 1 ,O 16,241 and $2,245,78 1, respectively. During the year ended Jun e 30, 2015, the Foundation donated to the University equipment and building construction costs of $2,206,368 and $6,636,426, respectively. The donation expense is included in Campus Support.

During the year ended June 30, 2014, the Foundation donated equipment to The Agricultural Foundation of Califo rnia State University, Fresno with a cost of $63 ,20 I. During the year ended June 30, 20 15, the Foundation donated equipment to T he Agricultural Foundation of California State University, Fresno with a cost of $17,54 1. The donation expense is included in Campus Support.

25


Note 14 - Leases and Agreements

The Foundation has entered into an operating lease for office space at 2201 Broadway, Suite 705, Oakland, CA for a sponsored program (Central CA Training Academy-Bay Area Academy). The payment is $10,517 per month. The lease expires in June 2017.

The Foundation has entered into various operating lease agreements with De11 Financial Services for the use .of office equipment by the Fresno State Foundation (491 O N. Chestnut A ve.). The armual expense for these leases is $6,780. The leases expire between October 2015 and August 2018.

T he Foundation has entered into an operating lease agreement with A Plus Copiers for the use of offtce equipment in a campus program (Upward Bound). The payment is $117 per month. The lease expired in July 20 15.

The Foundation has entered into an operating lease agreement with DeLage Landen Financial Services for the use of office equipment at the Foundation's offtce. The payment is $779 per month. The lease expires in February 2018.

The Foundation has entered into a residential lease for apartment space at Palazzo at Campus Pointe, Fresno CA for a sponsored program (Wayfinders). The payment is $2,303 per month. The lease expired in July 20 15; lease payments are currently month to month pending ftnalization of a new lease.

The Foundation has entered into an operating agreement with the Trustees of the California State University. The purpose of this agreement is toset forth terms and conditions under which the Foundation may operate as an auxiliary organization pursuant to Title 5 of the Califomia Code of Regulations. The agreement expires in Jun e 20 I 7.

Rental expenses under operating leases during the fiscal year 20 14 and fi scal year 2015 were $19,722 and $ 17,749, respectively.

Future minimum payments on the leases are as follows:

Year Ended June 30:

2016 $ 170,082 2017 $ 146,11 3 2018 $ 5,933 20 19 $ 96

26


Note 15- Expenses

For the Year Ended June 30, 2014:

General & Fund Raising Expenses Program Administrative (Development) Total

Salaries and wages $ 13,680,387 $ 627,137 $ o $ 14,307,524

Fringe benefits 3,800,464 406,046 4,206,510

Equipment 593,267 593,267

Student support 7,088, 128 7,088,128

Campus support 18,615,826 18,615,826

Overhead 2,244,926 2,244,926

Donations-agency accounts 2,433,333 2,433,333

Other costs 9,668,965 4,271 ,2 14 42,754 13 ,982,933

Total $ ~~.62 1 ,963 $ 7.137.130 $ 4?,7~~ $ 63,472,441

For the Year Ended June 30, 2015:

General & Fund Raising Expenses Program Administrative (Development) Total

Salaries and wages $ 14,894,683 $ 657,678 $ o $ 15,552,36 1

Fringe benefits 4,333,430 399,43 1 4,732,861

Equipment 602,934 602,934

Student support 7,27 1,888 7,27 1,888

Campus support 21 ,940,487 21,940,487

Overhead 2,339,590 2,339,590

Donations-agency accounts 3,857,553 3,857,553

Other costs 9,009,189 3,940,305 29,885 12,979,379

Total $ 6Q,322,20 I $ 8,8~4.267 $ 29,88~ $ 69 ,?77 ,Q~3

Note 16 - 401(k} Profit-Sharing P lan

The Founclation has a 40 l(k) profi t-sharing plan for benefi tcd employees working on grants, contracts, or campus programs. Employer contributions to thc plan are based on available buclget funding from grantor agencies or campus programs. Employer coJJtributions to the plan charged to sponsored programs or camp us programs during fiscal year 2014 and fiscal year 20 15 were $530,4 72 and $433,228, respectively.

27


Note 17 - Transit ion Obligation

As described in Note 7 - "Management Services", the Foundation reimburses the Association for reti red employees' health benefit payments for persons employed by the Association but performing services for the Foundation. The Foundation reflects within its Statements of Financial Position the liability associated with these future payments as calculated in accordance with the Defmed Benefit Plans Topic of the F ASB Accounting Standards Codification. Any change within this calculated balance is reflected within the Statements of Activities as a change in Unrestricted Net Assets. For the years ended June 30, 2014 and 20 15 the amortized transition obligation is $9,132 each year.

The post reti rement obligation as of June 30, 2014 and 20 15, is included in accounts payable (long-term portion) and accrued salaries and benefits payable (current portion) as follows:

Current portion

Long-term portion

Total

2014 2015

$ 70,000 $ 75,000

197.464 225,269

$ 267.464 $ 300269

As ofboth June 30, 20 14 and 2015, the post retirement obligation is unfunded.

Note 18- Uncertain Tax Positions

Generally Accepted Accounting Principles (GAAP) requi res organizations to deterrnine and assess all material tax positions taken in any income or information returns, including al! significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. GAAP addresses the recognition and measurement of income tax positions using a "more-likely-than-not" (ML TN) threshold. The ML TN threshold means that:

• A benefit related to an uncertain tax position may not be recognized in the fmancial statements unl ess it is ML TN that the position will be sustained based on its technical merits; and

• There must be more than a 50 percent likelihood that the position would be sustained if challenged and considered by the highest court in the relevant jurisdiction.

Management evaluated all material tax positions as required by GAAP and deterrnined that this requirement had no impact on the Foundation 's financial statements.

Note 19- Subseguent Events

Management has evaluated subsequent events through September 18, 20 15 (da te financial statements available to be issued) and determined no events have occurred subsequent to June 30, 20 15 that would require adjustment to, or disclosure in the fmancial statements.

28

California Statc Uni versity, Frcs no Fou nda tion Schedule of Expcnditurcs of federal Awnrds

for fi scal Year Endcd June 30, 20 15

Federal Pass-Through Federal CFDA Grant Award or Contract Program

Federal Gran lor/Program Title or Cluster Title Number Pass-Through Grantor Number Expendirures

Rescarch & Dcvclop mcnt U.S. Dcpartment of Agriculture:

Agricultural Research_ Bas i e and Applied Research 10.001 s 136,413 Agricultural Research_Basic and Applied Research 10.001 University ofCalifomia. Da vis UCD38953 s 12,009 p

Specialty Crop Block Grant Program- Fam1 Bill 10.170 Califomia Department of f ood & SCB I2002 s 119,7 13 p

Agriculture Specialty Crop Block Grant Program - Fam1 Bi ll 10.1 70 APIS Project M. APIS I s 579 p

Specialty Crop Block Grant Program- Farm Bill 10.170 $ 8,694 Agriculture and Food Research In itiative (AFRI) 10.3 10 s 69,461 Agriculture and Food Research lnitiative (AFRJ) 10.310 Texas Agrilife Extension 523002 s 10.681 p

Agriculture and Food Research lnitiative (AFRJ) 10.310 University of Alaska Fair UAF 12-002 1 s 1-l.O:!? p

Agriculture and Food Research lnitiative (AFRI) 10.310 s 7,478 Capacity Building For Non-Land Grant Colleges of 10.326 Texas Tech University 2 1 A378-0 1 s 19,963 p

Agriculture Technical Assistance and Training Grants 10.761 Califomia State University, San GT 131 14 s 14,953 p

Bemadino USDA Rural Business Enterprise Grant 10.769 $ 22,824

Dcpartment of Dcfcnse:

Basic, Applied, and Advanced Research in Science and 12.630 s 227,529 Engineering

U.S. Departmeot of the Interio r : Fish and Wildlife Coordinat ion Act 15.517 $ 82,255 San Joaquin Rivcr Restoration Program 15.555 $ 213,040 Central Valley Project lm provement Anadromous Fish 15.648 $ 24,56 1 Restoration Program

National Aeronautics and Spacc Administration : Science 43.00 1 Princeton University NNX14Al\.l29G s 39,163 p

T echnology T ransfer 43.002 Jet Propulsion Laboratory 143 1581- MOD 07/08/ s 112.96 1 p

143793 1

Space Operations 43.007 $ 8.906

Nationa l Scicnce f oundation:

Mathematical and Physical Sciences 47.049 s 3 18,948 Mathematical and Physical Sciences 47.049 Brigham Young University 14-0408 s 6,250 p

Geosciences 47.050 s 107,966 Biological Sciences 47.074 s 133,822 Social, Behavioral and Economic Sciences 47.075 s 39,6 18 Education and Human Resources 47.076 $ 885, 167 Education and H uman Resources 47.076 University Enterprises, u1c. 523792 s 17,483 p

U.S. Environmental Protection Agcncy:

Science to Achieve Resuhs (ST AR) Research Program 66.509 The Regents of the University of 0000 844 I -0 I s 81,006 p

Califomia

Dcpartm cnt of Ene rgy: Renewable Energy Research and Development 8 1.087 UT -Batelle, LLC 40001 15851 $ 38.091 p

Dcpar tmcnt of Hcalth a nd Human Scrviccs:

Minority Health and Health Disparities Research 93.307 National lnstirutes of Health 5P20MD002732-05 s 130,419 l' Cancer Centers Support Grants 93.397 National Institutes of Health-National I P20CA 138025 s 124.251 p

Cancer lnstitution Affordable Care Act-Teach Health Center Grad Medical 93.530 Valley Consortium for Medical Education VCME2012 s 130,994 p

EDU Payments Program Community Services B!ock Grant 93.569 Depanment of Commerce Services SA73762 s 19.300 p

Department Diabetes, Digestive, and Kidney Diseases Extramural 93.847 s 146.467

Research Allergy, lmmunology, and Transplantation Research 93.855 $ 101 ,89 1 Biomedical Research and Research Training 93.859 s 131.506 Biomedical Research and Research Training 93.859 National lnstitutes of Health ISC3GM 11 2532-0 1 s 15,679 p

Child Heahh and Human Development Extramural 93.865 s 19,212

Miscellan cous/No CFDA C odc:

29

California State Uni vcrsity, Fresno Foundation Schedulc of Expenditurcs of Fedcral Awards

For Fiscal Ycar Endcd June 30, 20 15

Federal Pass-Through Federal CFDA Grant Award or Contract Program

Federal Grantor/Program Title or Cluster Tirle Number Pass-Through Grantor Number Expenditures

Miscellaneous/No CFDA Cade 99.RD Booze Allen Hamilton 1057955844 s 2.1 00 p

Total Research and Devclopment s 3.595.380

T.-\JW Cluster Dcpartmcnt of Hea lth a nd Human Scrviccs: Temporary Assistance fo r Needy Families 93.558 Fresno County Of Social Services A-11-392 s 280,883 p

Temporary Assistance for Needy Families 93.558 County of Fresno 105261 s (258)

Total T AJ F Clustcr s 280,625 ••

TRJO Cluster Dcpartmcnt of Educa tion:

TRIO Srudent Support Services 8-t042 s 263,678

TRIO Talent Search 84.044 s 308,928

TRJO Upward Bound 84.047 s 598,005

TRIO Educational Opportunity Centers 84.066 $ 290,066 TRIO McNair Past Baccalaureate Achievement 84.2 17 $ 262.979

Total TRIO Clustcr $ 1.723.656 ••

\VIA Clustcr Departmcnt of Labor:

\VIA Adult Program!W1A Dislocated Workers 17.2581260 Central Valley Business lncubator 679.1 s 3!,829 p

WlA Adult & Dislocared Workers 17.2581278 Fresno Regional Workforce lnvestment 719 s 106,385 p

Board Trade Adjustment Assist Community College and Career 17.282 West Hills Community College WEST HlllS 14 s p

Training (T AACCT) Grants

Total WlA Cluster s 138.214

Other U.S. Department of Agriculturc: Agricultural Research_Basic and Applied Research 10.001 s 65,745

Farmers Market and loca! Food Promotion Program 10.168 s 54,991

Specialty Crop Block Gram Program- Farm Bill 10.170 Regents ò"fthe Universiry ofCalifomia. 00007930 s 956 p

Berkeley Higher Educarion - Institution Challenge Grants Program 10.217 The Board ofTrustees ofthe University 2013-04368-02 (AA633) $ 19,377 p

of lllinois

Hispanic Serving lnstirutions Education Grants 10.223 s 77,4-12

Hispanic Serving lnstitutions Education Grants 10.223 University Enterprises Corp at Califomia GT !3113 1GT 1-1 12 1 s 28,696 p

State University, Santa Barbara

Capacity Building for Non-land Grant Colleges of 10.326 s 112, 139

Agricul ture (NLGCA) Child Nutrition Discretionary 10.579 Cal i forn ia Department of Education X-99000 s 32.743 p

Rural Business Enterprise Grant (RBEG) Recovery Act 10.783 s 19,406

Community Connect Grant Program 10.863 Califomia Coalition for Rural Housing Plf25345 s 8.825 p

Soi! and Water Conservation 10.902 s 2.362

Cochran Fellowship Program-lntemational Training-Foreign 10.962 s 75,415

Participant Departm ent of Commerce: Economic Development_ Technical 11.303 Califomia State University, Chica- 07-66-0688 1 s 103.675 p

Economic Development Administration Economic Adjustment Assistance 11 .307 s 107. 122

Department of Defense: Agricultural Development for Armed Forces Pre- 12.Unknown United State Marine Corps MARINE-2 s 8.038 p

Deployment Training (ADAPT)

Agricultural Development for Armcd Forces Pre· 12. Unknown s 30.370

Deployment Training (ADAPT) Depa r t mcnt of Transportation: Safety Oelt Performance Grants 20.609 Califomia State University, Fresno SA7373.J s 154.807 p

National Priority Safèty Programs 20.61 6 Califomia State Universiry, Fresno SA70236 s 81,272 p

National Aeronautics and Spacc Adminis tration: Education 43.008 University ofCalifornia, San Pl384!52 I Pl413898 / s 12.738 p

DiegoiCalifom ia Space Grant PI.J 13883 I P1468236 / Pl-1682-13

\la tional Endowment Humanitics:

30

California Statc Un ivcrsity, Frcsno Foundation Schedule of Expcnditures of Fcderal Awards

For Fiscal Ycar Endcd June 30, 20 I 5

Federal Pass-Through Fedcral CFDA Grant Award or Contract Program

Federal GrantorfProgram Title or Cluster Title Number Pass-Through Grantor Number Ex2enditures Promotion of thc Human ities_Challenge Grants 45.130 $ 25,292 Promotion ofthe Humanities_Teaching & Leaming 45.162 s 31. 11 4 Resources & Curriculum Development

:'>lational Science Founda tion: Geosciences 47.050 s 17,23-l Education and Human Resources 47.076 s 65.919 ARRA Trans-NSF Recovery Act Research Support 47.082 s 292.291 Small Business Admin istration: Small Business Dcvclopment Center 59.037 Rcgents ofthe University ofCalifom ia, F300GRA049 s 213,009 p

Merced U.S. Departmc nt o f Ed ucation: Title I Grants lo Loca! Educational Agencies 84.010 Fresno Unified School District FUSD 1314 f 060-30 I 0- $ 198,754 p

0798-1 110-2100-51 10

Higher Education_ lnstitutional Aid 84.031 $ 835,586 •• Career and Technical Education-Basic Grants ta States 84.048 Cal i fo rn ia Department of Education CN 130248 I CN 130234 I s 258,036 p

CNI30265 1 CNI40125 1 CN I40 192

Rehabilitation Services_ Vocational Rehabilitation Grants to 84.126 Califomia Department of Rehabilitation 28867 s 145,310 p

States Rehabilitation Long Terrn Training 84.129 s 21 1,923 Migrant Educat ion Coordination Program 84.144 Kem Counry Superintendent of Schools KER.J'ICOUNTY 13 14 f s 12,526 p ••

C#503369 - v# I 0306 1 PIF23564

Migrant Education Coordination Program 8-U 44 Fresno Counry Superintendent ofSchools FCSOS I PLF23551 s 531 p •• Migrant Education Coordination Program 84.144 Delano Joint Union 1-ligh School District DELANO I PIF25220 s 1,985 p •• Migrant Education Coordination Program 84.144 Delano Union Elementary DELANOELM $ 92 p •• Migrant Education Coordination Program 84.1 44 Monterey County Superintendent of MONTCAl'vLP20 14 s 125.566 p •• Migrant Education Coordination Program 84. 144 Merced Counry Oflice of Education USDEII\.LERCEDCOE s 24 p •• Migrant Education Coordination Program 84.14-l Tulare County Oflice of Education TULARE I PIF 147471 s 45, 126 p ••

PO# 1-15294 1 150356 Migrant Educat ion Coordination Program 84.14-l Madera Unified School District PLFI4751 f CMAPMUSD $ 80,502 p •• Migrant Education Coordination Program 84. 144 Dinuba Unified School District DUSDCAl'vlP s 587 p •• Migrant Education Coord ination Program 84. 144 San Joaquin County Oflice of Education PLF 147571 PIF 14753 s 17,599 p •• Migrant Education Coordination Program 84.144 Lindsay Unified School District PLF23567 s 925 p •• Migrant Ed ucation Coordination Program 84.144 Monterey County s 48,466 p •• Migrant Education: College Assistance Migrant Program 84.149 s 423,217 •• Special Education-Personnel Development To lmprove 84.325 s 358,445 •• Mathemarics and Science Partnerships 84.366 Kings Canyon Unified School District KCUSD20 14 s 24.766 p

lmproving Teacher Quality State Grants 84.367 National Writing Project 93CA I6SEED20 12 $ 24.53 1 p

lmproving Teacher Quality State Grants 84.367 UCOP NCLB 10-CSP-FRESNO I s 185,588 p

NCLB I 0-ClvLP-FRESNO I NCLB 11-CSP-FRESNO I NCLB 11-CRLP-FRESNO I NCLB I 1-CWLP-FRESNO f NCLB I 1-C WP-FRESNO I NCLBI I-CMP-FRESNO

College Access Grant 84.378 CVCAL-SOAP 0-13-010 I PIF17028 s 329,556 p •• Transition Prog rams For Srudents With Intellectual 84.407 s 49 1,948 •• Race To The Top-District Grant 84.4 16 Lindsay Unified School District LINDSA YPROFDEVELO s 2.828 p

PMENTI -1 1 LINDSA YEXECCQACI-11 NG201-l

Depa rtment o f 1-lealth and Hum a n Services: Substancc Abuse and Menta I Health Services:Projects of 93.243 $ 134.336 Regional and National Significance Teen Pregnancy Prevention Program 93.297 Tulare Community Healrh Clinic TCI-IC-10-0 s 49,6 19 p

Advanced Education Nursing Traineeships 93.358 s 349,968, PPHF 2012: Community Transforrn 93.531 Counry of Fresno 12-226 $ 33 ,310 p

Promoting Sa fe & Stable Family 93.556 s 151,43 1 Child Welfa re Research Training or Demonsrration 93.648 Coumy of San Mateo 072-195 s 272.640 p ••

31

Federal Grantor!Program Title or Cluster Title Foster Care Title IV -E

Foster Care Title rv -E Foster Care Title IV-É Foster Care Title rv -E Foster Care Title rv -E Foster Care Title rv -E Foster Care Title IV-E

Califor nia State Univcrsity, Fresno Foundation Schcdule of Expcnditures of Fcdcral .-\wards

For Fiscal Year Endcd June 30,20 15

Federal CFDA Number

93.658

93 .658 93.658 93.658 93.658 93.658 93.658

Pass-Through Grantor

Fresno County Social Services

San Francisco County Califomia Department of Social Services Universiry ofCalifomia. Berkley County of Ventura

Contra Costa Monterey County Department of Social Services

Rural Health Care Services Outreach, Rural Health Network Development & Small Health Care Providers

93.912 Tulare Community Health Clinic

Scholarships For Health Professions Students From Disádvantaged Backgrounds Corpornte National Community Servicc: AmeriCorps

AmeriCorps Miscellancous/No CFDA Code: Miscellaneous!No C FDA Code

Total Other

Grand T otal Fcderal Awards

•• ldentifies Major Federal Programs P Pass Through Funds

93.925

94.006 Jumpstart

94.006 Jumpstart

99

32

Pass-Through Grant Award or Contract Number AGT. 11 11-3 79/ 14-400

PSC 200 1-08/09 13-3029 0008293 / 00008522 VENTURAFBT20 13/20 I.J 19-826-0 CSUFI5

TCHC2016

130200 CFDA-94.006-JS-SITE#I3 130200

Federal Program

Expenditures

s 446.175 p

$ 867,983 p

$ 4,543,986 p

$ 2,838,23-1 p

s 116,5-15 p

s 249,158 p

s 125,469 p

s 41,086 p

s 632,097 ••

s 8,738 p

112.797 p

s 722 $ 16,439,689

s 22,177.564

Notc I. Basis of Prcscntation

Cal i forn ia State Univcrsity, Fresno F ou ndation Schedule of Expcnditures of Fcd cral Awards

For Fiscal Ycar Ended Junc30, 2015

The accompanying schedule ofexpenditures of federal awards (the "Schedule") includes the federal grant activity ofCalifomia State University, Fresno Foundation under programs of the federal govern ment for the year ended June 30, 2015. The infom1ation in this schedule is presented in accordance with the rcquirements of the Officc of Manngement and Budgel (OMB) Circular A-133, A11dits ofStates, Loca! Governments. and Non-Projit Organizations. Because the schedule presents only a sclccted portion ofthe opcrations ofCalifomia Stalc University, Frcsno Foundation, il is nol intended lo and does nol presenllhe linancial position, changes in nel asselS or cash flows ofCalifomia State Univcrsity, Fresno Foundation. Note 2. Summary of Sign ilicanl Accounting Policies Expenditures reported on the Sched ule are repo rted on the ac crua! basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-21, Cost Principles Jor Educational lnstitlllions, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amoums shown on the Schedule represent adjustments or credilS ma de in the normal course of business to amounts reported as cxpcnditures in prior years. Pass-through entity identifying numbers are presenled where available. Note 3. Subrccipicn ts Ofthe federal expendilures presenlcd in lhe schedule, Califomia Slale University. Fresno Foundation provided federal awards to subrecipienls as follows:

C FDA Program Namc Numbcr Amount Provided to Subrccipicnts

Hispanic Serving lnstitutions Education Grants Hispanic Serving lnsti tutions Education Granls Economic Adj ustmcnl Assistance San Joaquin River Restoration Mathmatical and Physical Scienccs Education and Human Resources Special Educalion -Personnel Development to lmprove Services & Results for Children with Disabilities Foster Care Title LV -E WIA Adull & Dislocated Workers

33

10.223

10.223

11.307

15.555

47.049

47.076

84.325

93.658 17.258{278

s 15,926

s 12,301

$ 77,800

$ 150,448

$ 9,850

$ 107,315

$ 8,500

$ 10,367

$ 20,303

CALIFORNIA STATE UNIVERSITY, FRESNO FOUNDATION GENERAL F UND ADMINISTRATION COST CENTER- CHANGE I N NET ASSETS

July 1, 2014 to J une 30, 2015

INDIRECT COSTS AND OTHER INCOME: BUDGET ACTUAL lndirect cost recovery $ 2,200,000 $ 2,410,345 Handling charges 332,500 331,374

Subtotal- lndirect and Handling 2,532,500 2,741 ,719 Miscellaneous lncome 352 Short term investments 1,200,000 636,255 Endowment administrative fee I ,561,000 I ,561,000

Total lncome 5,293 ,500 4,939,326

EXPENSES: Personnel:

Monthly 584,699 625,578 Student 3!,176 32,101 Employee benéfits 302,541 291,922

Retired employee benefit (actual and accrual) 68,146 l 07,509 Accounting (audit) 65,000 50,750 Board/Committee meetings 9,500 9,510 Consultants 5,000 2,650 Management services 698,944 698,944 CSU Trustee Scholarship 6,000 Depreciation 34,5 15 38,7 12 Dues & Memberships 8,000 7,924 Equipment leasing 23,000 17,749 Employee recruitment 1,300 706 General insurance 62,062 51,818 Legal fees:

General 5,000 163 Employment 258 Sponsored Programs/Patents 5,000 2,893 Gifts 3,000

Licenses, permits & fees 9,000 10,991 Miscellaneous 3,200 5,052 Office supplies 25,000 27,459 Postage 10,000 10,36 1 Repairs & maintenance 30,000 26,300 Software 27,100 30,287 Travelltra ining 6,000 7, 154 Telephone 7,500 7,799 Utilit ies 22,000 22,644

Total Expenses 2,046,683 2,093,234

G ross Surplus Avai lable For Distribution $ 3,246,817 $ 2,846,092

34

-1

rl Parlucrslrip Jucludiug rlccomrtaucy Corporatious

Richard L. Holl~nd. C.P.A.

Thomas L. Bell, C.P.A .. <\ccount.Jnc\' c'''l"''ahon

Denise S. Hurst, C.I'A.

Kenneth ). Labendeira, C.I'A .. -\4:Ct\Unt.Jn.:y Cor.'Or.Jm'n

Pamel,, ). Gallemore, C.l'r\., .-\t"Ctmnt,tncy Corr~lr.thon

Karl L. i\:oves, C.I'A., ~count.m~· Cnrr(lf.ltton .

Cory ). Bell, C.P.A.

Kendall K. Wheeler, C. I'A.

Tom Collins, C.P.A.

\!ecia Wollenman, C. P.A.

Rena R. Avedik.ian. C.P.A.

Kell i D. Steelc, C. I'A.

ju lic B. Fillmore. C.I'A.

Carrie M. Wiebe. C.P.A., M.B.A.

\!ora E. Crow, C. l' A.

Nicholas Medeiros, C.I'A.

Oscar Espinoza. C.I'A.

Lisa Brown, C. l' A., C.F.E.

L. jerome Moon~. C.I'A. RcureJ

Robert E. Grider. C.l':\. R1.:11r~

Moore Grider & Comp any Cert{fied Public Accomrtaut;

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Board of Govern ors California State University, Fresno Foundation Fresno, California

We have audited, in accordance w ith the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Califomia State University, Fresno Foundation, which comprise the statement offinancial position as of June 30, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the fi nancial statements, and have issued o ur report thereon dated Septembe r 18, 201 5.

Internal Control over Financial Reporting

In planning and performing our audit of the fmancial statements, we considered California State University, Fresno Foundation's intemal contro l over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressin g our opin ion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Cali fornia State Univers ity, Fresno Foundation's intemal control. Accordingly, we do not express an opinion on the effectiveness of Califomia State University, Fresno Foundation's intemal control.

A deficiency in interna/ contra/ exists when the design or operation of a control does not allow management or employees, in the normal course of performing thei r assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements wi ll not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

Our consideration of intemal control was for the limited purpose described in the first paragraph of this section and was not designed to identify al l deficiencies in intemal control that might be material weaknesses or sign i ficant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in intemal control that

35 325 E. Sic rra I Fresn o, CA 93710 I 559 44-0-0700 fax 559 -1-40-0600

wvvvv.n1 o01·cgride r.con1

we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Otber Matters

As part of obtaining reasonable assurance about whether Califomia State University, Fresno Foundation's financial statements are free of material misstatement, we perforrned tests of its compliance with certain provisions of \aws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an op inion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Auditin g Standards.

Purpose of tbis Report

The purpose of this report is solely to describe the scope of our testing of intemal control and compliance and the resu lts of that testing, and not to prov ide an opinion on the effectiveness of the organization ' s internal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the organization's intemal control and compliance . Accordingly, this communication is not suitable for any other purpose.

Fresno, Califomia September 18, 20 15

36

rl Parluersllip lucludiug Accouu tmrcy Corpomtious

Richard L. H olland, C.P.A.

Thomas L. Bell, C.P.A., A.;couni.Jncv Corf'\-.r;1t1nn

Denise S. l-lurs t. C.l'A.

Kenneth ]. Labendeira, C.P.A. , Acc•)unlilncv Corpnr.ltion

Pamela ]. Gallemore, C.P.A., kcountam::v CnrporatJOil

Karl L. 1\!oyes, C.P.A., .~counlancv ((1rpo.-ation

Cory ]. Bell, C.P.A.

Kendall K. Wh eeler, C.P.A.

Tom Collins, C.P.A.

:--Jecia Wollenman, C.P.A.

Rena R. Avedikian, C.P.A.

Kelli D. Steele, C.P.A.

juli e B. Fillmore, C.P.A.

Carrie M. Wiebe, C.P.A., M.BA

~ora E. Crow, C.P.A.

~icholas Medeiros, C.P.A.

Osca r Espinota, C.P.A.

Lisa Brown, C.P.A., C.F. E.

L ]erome Moore, C.P.A. R.._tirl'd

Robert E. Grider, C.P.A. Rehn.-J

Moore Grider & Company Certifit•d Public Accowrlmrls

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY O'MB CIRCULAR A-133

Board of Govern ors California State University, Fresno Foundation Fresno, Califomia

Report on Compliance for Each Major Federal Program

We have audited California State University, Fresno Foundation's compliance with the types of compliance requirements described in the OMB Circular A-1 33 Compliance Supplement that could have a direct and material effect on each of Californ ia State University, Fresno Foundation's maj or federal programs for the year ended June 30, 20 15. California State Univers ity, Fresno Foundation's major federal programs are identified in the summary of auditor's results section of the accompanyin g schedule of findings and questioned costs.

Management's Responsibility

Management is responsible far compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs.

Auditors' Responsibilitv

Our responsibi lity is to express an opin ion on compliance for each of California State University, Fresno Foundation 's major federal programs based on our audit ofthe types of compliance requirements referred to above. We cond ucted our audit of com pliance in accordance with auditing standards generally accepted in the United States of America; the standards app\icable to financ ial audits contained in Government Auditing Standards, issued by the Comptro ller General of the United States; and OMB Circular A- 133, Audits of States. Loca! Governments. and Non-Profit Organizations. Those standards and OMB Circular A-l33 requ ire that we plan and perforrn th e audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An aud it includes examining, on a test basis, evidence about California State University, Fresno Foundation 's compliance with those requirements and performing such other procedures as we cons idered necessary in the circumstances.

We believe that our aud it provides a reasonable basis for our opin ion on compl iance for each major federal program. However, our audit does not provide a lega l deterrn ination of California State University, Fresno Foundation 's compliance.

37 325 E. S ie tTa I Fresno, CA 93710 I 559 +l0-0700 fax 559 -1-1-0-0600

vvwvv.moot·egt·ider.con,

Opinion on Eacb Major Federal Program

In our opinion, Califomia State Univers ity, Fresno Foundation complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30,2015.

Report on Internal Control Over Compliance

Management of California State University, Fresno Foundation is responsible for establishing and maintaining effective intemal contra! over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Califomia State University, Fresno Foundation's intemal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectíveness of internal contra ! over compliance. Accordingly, we do not express an opin ion on the effectiveness of Califomia State University, Fresno Foundation's intemal control over compliance.

A deficiency in internal contra! over compliance exists when the design or operation of a control over compliance does not a llow management or employees, io the normal course of performing their assigned functions, to prevent, or detect and correct, no ncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal contra! over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type o f comp liance requirement of a federal program wi ll not be prevented, or detected and corrected, on a timely basis . A significant deficiency in internal contra/ aver compliance is a deficiency, or a combination of deficiencies, in intemal control over compliance with a type of compliance requirement of a federal program that is less severe tban a material weakness in intemal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compl iance was for the limited purpose described in .the first paragraph of this section and was not des igned to identify all defic iencies in intemal control over compl iance that might be material weaknesses or s ignificant deficienc ies. We did not identify any deficiencies in intemal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose ofthis report on intemal control over compliance is solely to describe the scope of our testing of internal control over comp liance and the results of that testing based on requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

/~·u ~Jju;k \Y ~/~~ Fresno, Califomia September I 8, 2015

38

CALIFORNIA ST ATE UNIVERSITY, FRESNO FOUNDATION

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2015

SECTION I- SUMMARY OF AUDITORS' RESULTS

Financial Statements • Type ofauditors' report issued:

• Intemal control over financial reporting: Material weakness identified: Significant deficiencies identified:

Unmodified opinion

No None reported

• Noncompliance material to the financial statements noted: No

Federal Awards • Intemal control over major programs:

Material weakness identified: Significant deficiencies identified:

No None reported

• Type of auditors' report issued on compliance for major programs: Unmodified opinion

• Any audit findings disclosed that are required to be reported in accordance with section 510(a) ofCircular A-133: No

• Major Programs: CFDA Number

93.55 8 84.042 84.044 84.047 84.066 84.2 17 84.03 1 84. 144 84.149 84.325 84.378 84 .407 93.648 93.925

Name ofFederal Program or Cluster T ANF Cluster TRlO Cluster TRlO Cluster TRlO Cluster TRlO Cluster TRlO Cluster Higher Education _lnstitutiona l Aid Migrant Education Coordination Program Migrant Education: College Assistance Migrant Program Spec ia l Education-Personnel Development To lmprove College Access Grant Transition Program For Students With Intellectual Child Welfare Research Training or Demonstrat ion Scholarships For Health Professions Students

39


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I- SUMMARY OF AUDITORS' RESULTS (Continued)

•

•

Dollar threshold used to distinguish between Type A and Type B programs for program determination:

Califomia State University, Fresno Foundation qualified as low-risk auditee.

SECTION II - FINANCIAL STATEMENT FINDINGS

SECTION ill - MAJOR FEDERAL A W ARD FINDINGS AND QUESTIONED COSTS

40

$665,327

Yes

Non e

Non e


SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


Section II - Financial Statement Findings

Section ill - Federal Award Findings and Q uestioned Costs:

41

Non e

Non e

ADDITIONAL INFORMATION

42

CALIFORI~lA STATE UNIVERSITY, FRESNO FOUNDATlON Schedule of Net Position

June 30, 20 15 (far inc1usion in the Ca1ifornia State University)

Assets:

Current assets: Cash and cash equiva1ents Short-tern1 investments Accounts receivable, net P1edges receivab1e, net Prepaid expenses and other assets

Total current assets

Noncurrent assets: Student 1oans receivable, net Pledges receivable, net Endowment investments Other long-terrn investments Capital assets, net Other assets

Liabilities:

Total noncurrent assets

Total assets

Current liabi1ities: Accounts payable Accmed salaries and benefits payab1e Accrued compensated absences- current portion Unearned revenue Long-terrn debt obligations- current portion Other liabi1ities

Total current liabili ties

Noncurrent liabilities: Depository accounts Other li ab ilities

Total noncurrent liabilities

Total liabilities

Deferred intlows of resources: Others

Total deferred intlows of resources

Net Position: Net investment in capital assets Restricted far:

Nonexpendable- endowments Expendable:

Scholarships and fellowships Loans Other

Unrestri cted

Total net position

43

$

$

1,533,632 39,681,627 15,942,904

1,504,080 112,789

58,775,032

225,937 4, 19 1,102

145,096,931 1,367,159

129,973 520,563

151 ,531,665

2 1 0,306,697

1,974,506 1,042,994

57,555 3,581,300 2,000,000

39,076

8,695,43 1

2,629,598 327,960

2,957,558

11 ,652,989

206,451

206,451

129,973

98,204,3 12

60,183,842 I ,232,530

36,620,092 2,076,508

198,447,257

CALIFORNI A STATE UNIVERSITY, FRESNO FOUNDATION

Schedule of Revenues, Expenses, and Changes in Net Position

Year Ended June 30, 20 15

(for inclusion in the California State University)

Revenues:

Operating revenues: Grants and contracts, noncapital:

Federal State Nongovernmental

Sal es and services of auxiliary enterprises (net of scholarship allowances of$ O )

Total operating revenues

Expenses:

Operating expenses: Instruction Research Public service Institutional support Student grants and scholarships Auxiliary enterprise expenses Depreciation and amortization

Total operating expenses

Operating income (loss)

Nonoperating revenues (expenses): Gifts, noncapital lnvestment income (loss), net Endowment income (loss), net [nterest Expenses Other nonoperating revenues (expenses)

Net nonoperating revenues (expenses)

[ncome (loss) before other additions Additions (reductions) to permanent endowments

lncrease (decrease) in net position

Net position: Net position at beginning ofyear, as previously reported

Net position at end ofyear

44

$

$

22,177,564 5,819,564 5, 146,171

4,302,719

37,446,018

15,065,932 6,426,707

14,212,97 1 29,885

3,747,415 7,814,944

38,712

47,336,566

(9,890,548)

6,512,082 I, 155,233 2,580,720

(20,000) ( I 0,998,025)

(769,990)

(10,660,538) 7,666,683

(2,993,855)

201 ,44 1,112

198,447,257

J

"'

Hestdctcd cnsh Mlld cn.s h ~quh•nh:niS n t June JO, 20 15:

2.1 CouiJIOSitiou of iuvcs tnu:ut.s ac June 30, 20 15:

Suue ofCalifomita Local Agency lnvcstment Fund (I..AIF) Corporate bonds Mut ual funds Money Market funds Mongage OOd:ed sccuntes Municipal bonds U.S. treasury secunties Equity secunt1es Ahenuuive m vestmcnts

Privatc equity (tncludmg limited pannerships ) Hedgc funds Commodities Othcr altcmativc investment types

Other mnjor investments: Life incomt: con trJcts

Total invcstments

Lcss endo"'fllent mvestments (ente.r as ncgative number)

Tobl invcstments

2.2 lnvts tmtnU hdd by the Univcrsily uudcr conlmclmll agru ments a t J une 30, 20 I S:

2J Res cricted cutTtn t iuve!lilmtnts al June 30, 20 1 S l' ti :Utd to: LLC

T orul n.·stricled current invc.stmeuts ~•• June JO, 20 I S

2A JtesiJ•i ctcd II OIIt'li i' I'CIII inveslmenls :11 June JQ, 2015 I'Chi1 Cd 10: Endo\vtncnt inve:stmcnt

C:unpus r'rogrom Fund

Tolal rt"stricltd noncun"t'nt in\'t"lltnt"nts ni June J O, 20 1S

3. 1 Compos ition o f CAJ)il ;.t an ets a t June 30, 201 ~:

Oepr~ciable/amomzablc ~prtal assc1s. P~rsonul propeny.

Equipmcnt

Total dr:preciab lelamoni7..ablc capitnl llSscts

Totul capital asst:ts

Less accumuhu ed de:prcci:uion/amonization: Personal prOJ)Cny:

Equ1 pment

Total accumulated dcprccJation/amonrzation

Total capual asselS, net

3.2 Oeaail of d epreci01 t ion and amo11iza tion npensc for thc yrar euded June JO, 2015:

Deprecintion :md nmoniunion ex:pense rt!lated to capital nssets

Total depn.:ciation and amonizat ion

C ALIFORNIA STATE UN IVEilS ITY, FRESNO FOUNDATION

Othcr lnfonnauon June JO, 2015

(for mclusion in thc Callfonua State Universlty)

Not Appltcable

C u•·r·c:rrl Uu•'t'Stricted Cunent ltcs t•·icted

6.830 5,202,626 38,377 1,187,750

197,941 39.225 984,437 795,543 1,661

3,109,196 22,744,590 I 36,429

5,237,022

39.465,935

39,465,935

Am ount 215,69:!

215,692

Amount 145,096,931

1,367, 159

146.464.090

544,000

544,000

544.000

(398,978)

(398.978)

145,022

38,712

38,71 2

215,692

215,692

Not Apphcable

Tohtl Cun·en t 6,830

5,241 ,003 1,187,750

237,166 984,437 797,204

3,109.196 22,881.019

5,237,022

39.68 1.627

39.681.627

Noncur·nmt

Unn!stdcted

544,000

544,000

544,000

(398,978)

(398,978)

l -'5.022

NoncurTenl Restricted Totnl Noncunent Tot ni

6,830 25.165,868 25,165,868 30,406,870 6,658,753 6,658.753 7,846,503

584,427 584,427 82 1,593 3,799,530 3,799,530 4,783,967 3,305,886 3,305,886 4 ,103,090

12,214,768 12,214,768 15,323,964 68,356,187 68,356,187 9 1,237,205

I ,603,768 1,603,768 1,603,768 i9,600,4ll 19,600,453 24.837,475

1,373 1,373 1,373 4.736,918 4,736,9 18 4,736,9 18

~ 436.159 436, 159

146.464.090 146.464.090 186,145,7 17

(145,096,931) !145,096,931) (145.096,93 I )

1.367,159 1.367,159 4 1,048.786

23,663 567,663

23,663 567,663

23,663 567.663

(38,712) (437.690)

(38.712) (437.690)

(15.049) 129.973

..... ""

CALIFORNIA STAT E UNIVERSr rY, FRESNO FOUNUATION Other lnfom1at•on

Long- tcnu l iabilitics ltcl i\'ity schedulc:

Accrucd COIUJh!nsatcd ubscnccs

Long·teml dcbt obh.~;ations·

Othcr: Pnv3tt Notc Payable

Tota l lony·tcml debt oblig:uions

Totallong-tcrm dcbt obhgauons, net

Total l on~;-tcmt l iabllltles

Futu•·c m iu iuwm lc11SC JHtynu.'nt s- c~apital le11se obligntions :

Lon~-1erm debt obligation sdaedule

Year endmy June 30 2016

Total

Cltlcuhuíou of n t•l IHU:ilion

lblnncc June J O, 201-'

5 1,887

2,000.000

2.000,000

2,000,000

2,051.887

l, rinriJu•l

June 30, 20 I 5 (for inclus1on in thc: Cahfo m1a State University)

Pl'ior J)tf'ioll 11djus tmenu

Not Appllcuble

Re:vrr1ue Ronds

l nltn:sl

H. eclnssificnlions

Pr·iucipal a nd lntrrrst

Auxi lia r-v Or:&aniza tions Toral

1.1 Calculation of ne t J)Osirion - Ner inYeshnen t in upira l liiSS«'IS

Capnnlassets, net ofaccumulated depreciacion

Net posruon - ncr mve<>tmcnt m capital assct

7.2 Cnlcul r11ion of n et position - Rcstf'ictt:d for· noncxpcn duble • endowmt'nl s Endowment investmcnts Othcr adj ustmcnts. (plcase lrst)

Portion ofrestricted invesrmcnts rclated to tcmporoui ly rt.-stricted assets

Ner posirion - ltesrr·icr t d for· noncxpenda ble - t ndowmcn ts tJcr· SNP

Tnumrct iont "'irh Rcl:rlt'd Entities

GASB

Payments to Umvcrsuy for sa larics o fUnivcrsaty personncl working on conlrJcts, gronls, nnd olher programs Gifts {cash or assets) 10 1he Universuy from discretdy presented component units

Other Pos lt:rnploy rn ~nt Bcn~fiiS Obligoaliou (0P E8)

I O l'ollution rt•nr r t.linli on liab ili cies under· GAS B Stulemcu c No. -'9:

li Tht nu lurt: aud ;unount of1hc prior pcr iod adjustmcni(S) rccord ed lo bcginning nrl posi lion

F~ Auxili aries

129.973 129,973

129,973 129,973

145,096,931 145,096,931

(46,892,619 ) (46,892,619)

98,204,3 I 2 98,204,312

Nat Applicablc

No1 Applic:~ble

Not Applicable

D11lnnce .June 30, 20 1J

(t' CS hiiCd)

5 1,887

2,000.000

2,000,000

2,000.000

2.05 1,887

Prir~

2,000,000

2,000,000

;\mounl 3,624,1 11 8,842,864

llahwcc C urrent I .UII I:• ICI 'III

Additions ltcdu ctio ns June 30,2015 jl011ÍOII _lJOt1ion

5,668 57,555 57,555

2,000,000 2.000.000

~ 2,000.000

----2,000,000 2,000,000

5,668 2,057,555 2,057,555

A li other lone-rr n n debl obl igaciorrs Toral

Principa l nnd Principal a nd lnte re:st l nteresl Princil!al lnterest ~·

20.000 2.o:w.ooo 2.000.000 20.000 2,020,000

20,000 2.020,000 2,000,000 20,000 2.020.000

Documents

California State University, Fresno Foundation · For the Year Ended June 30, 2015 Audit Committee: Mr. Kyle Stephenson Ms. Carol Chandler Ms. Cathy Frost Hon. Annette LaRue Hon