PETIT JEAN MOUNT AIN University of ArkAnsAs system · petit jean mount38 ain University of arkansas system • consolidated financial statement fy2011 The capitalized value of capital

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UNIVERSITYOF ARKANSASAT LITTLE ROCK NATIONAL CENTER FOR RURAL LAW ENFORCEMENT



UNIVERSITYOF ARKANSASAT LITTLE ROCK

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University of ArkAnsAs systemConsolidated Financial Statements

fy2010-11






board oFTruSTeeS

Carl L. Johnson, MD, Chairman

Mike Akin, Vice Chairman

Jane Rogers, Secretary

Sam Hilburn, Assistant Secretary

John Goodson

James A. “Jim” von Gremp

John Tyson

Ben Hyneman

David Pryor

Mark WaldripDr. Carl L. Johnson, Board Chairman

OPPOSITE PAGE: B. Alan Sugg Administration BuildingHome of the University of Arkansas System Offices, named by the University of Arkansas Board of Trustees and dedicated on October 21, 2011, on the occasion of Dr. B. Alan Sugg’s retirement after

serving twenty-one years as the University’s President

adminiSTraTiveoFFiCerS

B. Alan SuggPresident

Barbara A. GoswickVice President for Finance & CFO

Ann KempVice President for Administration

Daniel E. FerritorVice President for Academic Affairs

Mark J. CochranVice President for Agriculture

Melissa K. RustVice President for University Relations

Fred H. HarrisonGeneral Counsel Dr. B. Alan Sugg, President

Table oF ConTenTS

Letter of transmittal 3opinion of Legislative Audit 4management’s Discussion and Analysis 6selected Highlights 9statement of net Assets 10statement of revenues, expenses and Changes in net Assets 11statement of Cash flows 12related Private entities 14supplemental information (financial exhibits by Campus) 18notes to the financial statements 26required supplemental information 70supplemental information by Campus 72Campus Administrators inside back cover





P E T I T J E A N M O U N T A I N2

University of arkansas system • consolidated financial statement fy2011

PAGE INTENTIONALLY LEFT BLANK







       

 

December 9, 2011 

 

Board of Trustees 

President Donald R. Bobbitt 

Chancellors of the University of Arkansas System 

 

It  is my  pleasure  to  transmit  to  you  the  Consolidated  Financial  Report  of  the  University  of  Arkansas 

System  for  the  fiscal  year  ended  June  30,  2011.  The  data  presented,  including  the  Management 

Discussion and Analysis, Statement of Net Assets, Statement of Revenues, Expenses and Changes in Net 

Assets, and Statement of Cash Flows, are exhibited on a consolidated basis and include all components 

of the UA System: the campuses at Fayetteville (whose statements  include the Division of Agriculture, 

Arkansas  Archeological  Survey,  Clinton  School  of  Public  Service  and  Criminal  Justice  Institute),  Fort 

Smith,  Little  Rock,  Monticello,  Pine  Bluff,  DeQueen,  Helena‐West  Helena,  Batesville,  Hope  and 

Morrilton,  the Medical Sciences campus,  the Arkansas School  for Mathematics, Sciences and the Arts, 

and System Administration. 

These  statements  were  prepared  in  accordance  with  generally  accepted  accounting  principles  as 

prescribed  by  the  Governmental  Accounting  Standards  Board  (GASB).  All  of  the  financial  statements 

used  to  prepare  the  consolidated  report,  except  for  the Medical  Sciences  campus  and  the  discretely 

presented  component  units, were  audited  by  the Arkansas Division  of  Legislative Audit.  The  financial 

statements from the Medical Sciences campus were audited by KPMG LLP. All received unqualified audit 

opinions. 

 

Sincerely, 

 

Barbara A. Goswick, CPA 

Vice President for Finance & CFO 

 







L E G I S L A T I V E J O I N T A U D I T I N G C O M M I T T E E

Roger A. Norman, JD, CPA, CFELegislative Auditor

Sen. Bill PritchardSenate Chair

Rep. Tim SummersHouse Chair

Sen. David WyattSenate Vice Chair

Rep. Toni BradfordHouse Vice Chair

DIVISION OF LEGISLATIVE AUDIT

172 STATE CAPITOL • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE (501) 683-8600 • FAX (501) 683-8605www.arklegaudit.gov

INDEPENDENT AUDITOR'S REPORT

University of Arkansas SystemLegislative Joint Auditing Committee

We have audited the accompanying financial statements of the business-type activities and the aggregate discretely presented component units of the University of Arkansas System (University), an institution of higher education of the State of Arkansas, as of and for the year ended June 30, 2011, which collectively comprise the University’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the University’s management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year partial comparative information has been derived from the University’s 2010 financial statements and, in our report dated November 18, 2010, we expressed unqualified opinions on the respective financial statements of the business-type activities and the aggregate discretely presented component units. We did not audit the financial statements, including the prior year partial comparative information, of the University of Arkansas for Medical Sciences, a unit of the System, whose statements reflect total assets, net assets, and revenues constituting 36 percent, 38percent, and 50 percent, respectively, of the related combined totals. Additionally, we did not audit the financial statements, including the prior year partial comparative information, of the University of Arkansas Foundation, Inc., and the University of Arkansas Fayetteville Campus Foundation, Inc., which represent 100% of the assets, net assets, and revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the University of Arkansas for Medical Sciences, the University of Arkansas Foundation, Inc., and the University of Arkansas Fayetteville Campus Foundation, Inc., is based on the reports of the other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The financial statements of theUniversity of Arkansas Foundation, Inc., and the University of Arkansas Fayetteville Campus Foundation, Inc., were notaudited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions.

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of the University of Arkansas System as of June 30, 2011, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

The financial statements include partial prior year comparative information. Such information does not include all of the information required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the University’s financial statements for the year ended June 30, 2010, from which such partial information was derived.

As discussed in Note 21 to the financial statements, the University restated certain prior year (2010) amounts on the Statement of Net Assets, the Statement of Revenues, Expenses and Changes in Net Assets, and the Statement of Cash Flows for presentation purposes. These restatements involved various reclassifications, the proper recognition of interest capitalized during the construction period, and the disaggregation of cash inflows and outflows of the Direct Lending, Plus, and FFEL transactions for the Fayetteville campus.







- 2 -

In accordance with Government Auditing Standards, we have also issued our report dated November 8, 2011 on our consideration of the University’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

The Management’s Discussion and Analysis and certain information pertaining to postemployment benefits other than pensionsare not a required part of the basic financial statements, but are supplementary information required by the Governmental Accounting Standards Board. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University’s basic financial statements. The Statement of Net Assets by Campus, the Statement of Revenues, Expenses and Changes in Net Assets by Campus, and the Statement of Cash Flows - Direct Method - by Campus are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Statement of Net Assets by Campus, the Statement of Revenues, Expenses and Changes in Net Assets by Campus, and the Statement of Cash Flows - Direct Method -by Campus have been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the report of other auditors, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

DIVISION OF LEGISLATIVE AUDIT

Roger A. Norman, JD, CPA, CFELegislative Auditor

Little Rock, ArkansasNovember 8, 2011EDHE14111






MANAGEMENT DISCuSSION & ANALYSISoverview oF The FinanCial STaTemenTS and FinanCial analySiS

The University of Arkansas (“the University”) is pleased to present its financial statements for the fiscal year ended June 30, 2011, with the fiscal year 2010 prior year data presented for comparative purposes. The data presented includes the Statement of Net Assets, the Statement of Revenues, Expenses and Changes in Net Assets, and the Statement of Cash Flows.

The University, which prior to 1969 consisted of the Fay-etteville and Medical Sciences campuses, was expanded in 1969 to include the Little Rock campus (formerly Little Rock University), in 1971 to include the Monticello campus (formerly Arkansas A&M College), in 1972 to include the Pine Bluff campus (formerly Arkansas AM&N College), in 1996 to include the Phillips campus (formerly Phillips Coun-ty Community College), and the Hope campus (formerly Red River Technical College), and in 1998 to include the Batesville campus (formerly Gateway Technical College). On July 1, 2001, the System was expanded to include campuses in Morrilton (formerly Petit Jean College) and DeQueen (formerly Cossatot Community College). The Fort Smith campus (formerly Westark College) joined the System on January 1, 2002. Forest Echoes Technical In-stitute and Great Rivers Technical Institute merged with the Monticello campus on July 1, 2003. The Arkansas School for Mathematics, Sciences and the Arts joined the System on January 1, 2004. In addition to these campuses, the System includes the following units: Clinton School of Pub-lic Service, Division of Agriculture, Archeological Survey, Criminal Justice Institute, and the System Administration.

All programs and activities of the University of Arkansas are governed by its Board of Trustees, which has delegated to the President the administrative authority for all aspects of the University’s operations. Administrative authority is fur-ther delegated to the Chancellors and Vice President for Agriculture, who have responsibility for the programs and activities of their respective campuses or state-wide oper-ating division.

The University’s financial statements were prepared in accordance with standards issued by the Governmental Accounting Standards Board (GASB). The financial state-ment presentation required by GASB Statement No. 35, Basic Financial Statements-and Management’s Discussion and Analysis-for Public Colleges and Universities, provides a comprehensive, entity-wide perspective of the Univer-sity’s assets, liabilities, net assets, revenues, expenses, changes in net assets and cash flows. This discussion has been prepared by management and should be read in con-junction with the financial statements and notes following this section.

The University has identified two foundations as compo-nent units subject to inclusion in the financial report: the University of Arkansas Foundation, Inc. and the University of Arkansas Fayetteville Campus Foundation, Inc. As com-ponent units, their financial information is included in this financial report in accordance with GASB Statement No. 39, Determining Whether Certain Organizations Are Com-ponent Units. Additional information regarding these foun-dations is provided in Note 1 of the financial statements.

Statement of Net Assets

The Statement of Net Assets presents the assets, liabilities and net assets of the University. The purpose of the state-ment is to present to the readers of the financial statements a fiscal snapshot of the University as of the end of the fiscal year. Current assets and liabilities are distinguished from non-current assets and liabilities. The statement provides a picture of net assets (assets minus liabilities) and their availability for expenditure by the University.

Net assets are divided into four major categories:• Invested in capital assets, net of debt: capital assets, net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construc-tion or improvement of those assets.• Restricted net assets – non-expendable: net assets subject to externally-imposed stipulations that they be maintained permanently by the University.• Restricted net assets – expendable: net assets whose use by the University is subject to externally-imposed stipu-lations that can be fulfilled by actions of the University pur-suant to those stipulations or that expire by the passage of time.• Unrestricted net assets: net assets that are not subject to externally imposed stipulations but can be used at the discretion of the governing board to meet current expenses for any purpose if not limited by contractual agreements with outside parties.

The University’s total assets increased $284.1 million, including an increase of $87.7 million in cash and invest-ments. A decrease in patient accounts receivable of $2.4 million was due to a decrease in the number of days an ac-count was uncollected offset by an increase in activity in the UAMS Faculty Group Practice. The increase of $9.6 million in other accounts receivable was due to the amounts due from grants and contracts, all of which is expected to be collected. The increase of $2.8 million in inventories was almost entirely due to supplies bought at UAMS to support patient services. The University’s capital additions, net of depreciation expense, totaled $74.4 million (Note 10). The proceeds from the sale of bonds offset by the University’s use of the proceeds resulted in deposits held in trust by others to increase $111.4 million.

Total liabilities increased $176.5 million due to increases of $170.7 million in debt related to bonds, notes, capital

June 30, 2011 June 30, 2010ASSETS

Current assets 736,798,911$ 660,087,693$ Capital assets, net 2,172,012,539 2,097,575,781 Other assets 484,160,294 351,225,727

Total Assets 3,392,971,744$ 3,108,889,201$

LIABILITIESCurrent liabilities 238,869,266$ 234,497,523$ Noncurrent liabilities 1,244,227,064 1,072,134,892

Total Liabilities 1,483,096,330$ 1,306,632,415$

NET ASSETSInvested in capital assets, net of related debt

1,217,082,082$ 1,214,124,374$

Restricted Non-Expendable 58,052,936$

52,337,549$

Expendable 203,376,463

178,247,610

Unrestricted 431,363,933

357,547,253

Total Net Assets 1,909,875,414$

1,802,256,786$

Condensed Statement of Net Assets







leases and installment contracts (Note 7) and $4.7 million in other post employment benefits (Note 13). There were other offsetting variances, including a decrease in $3.8 mil-lion in estimated third-party payor settlements for UAMS.

The increase in assets of $284.1 million netted with an in-crease of $176.5 million in liabilities resulted in an increase of $107.6 million in total net assets for the University, $73.8 million of which represents an increase in unrestricted net assets.

Statement of Revenues, Expenses and Changes in Net Assets

The purpose of this statement is to present revenues re-ceived and expenses paid by the University, both operat-ing and non-operating, and any other revenues, expenses, gains and losses. The operating income (loss) is of little significance for the University since the GASB requires a significant portion of revenues (state appropriations, gifts, and some grants and contracts) to be reported as non-operating.

Operating revenue increased $80.4 million, $33.9 million of which is due to growth in hospital patient discharges and outpatient visits at UAMS. The majority of the remaining increase of $46.5 million is due to the following: 3.3% in-crease in tuition ($7.1 million); 6.7% increase in auxiliaries ($9.8 million) of which 50% is attributable to the athletic program at the Fayetteville campus and the remaining one-half due to increased demand for auxiliary services result-ing from enrollment growth; 10.9% increase in sales and services of educational departments ($5.8 million); and, 7.2% increase in grants and contracts ($21.4 million),

Increased compensation and benefit costs rose 2.9% over the previous year, and accounts for $37.3 million or 36.1% of the total increase in operating expenses of $103.4 mil-lion. Twenty percent (20%) or $7.5 million of the $37.3 million increase was due to increases in compensated absences (Note 4) and the liability for post-employment benefits (Note 13), neither of which requires cash outlay. Another 74.3% of the increased compensation and ben-efits costs is mainly due to an increase in faculty and staff to support increased enrollment, programs, and research on the UAMS and Fayetteville campuses. Supplies and services expense increased $28.0 million, including $20.6

million primarily due to renewal and replacement efforts on the Fayetteville campus funded by energy savings performance contracts, federal stimulus funds and auxil-iary enterprises. Expenses related to the University’s self-funded health and dental plans increased $12.2 million and scholarships increased $29.2 million, primarily due to the increase in Arkansas Academic Challenge Scholarships funded by the lottery and to an increase in Pell recipients. Depreciation expense decreased $3.3 million due to a one-time adjustment in 2010 for intangible assets.

Net non-operating revenues increased $39.3 million. This was due to an increase of $54.9 million in federal and state grants netted against a decrease of $13.3 million in state appropriations, gifts and investment income. A significant amount of the increase in federal and state grants was a result of increased Pell recipients and Arkansas Academic Challenge Scholarships funded by the lottery and the re-ceipt of federal stimulus funds.

Other revenues netted against other expenses decreased $18.4 million. This was due to the University having re-ceived $25.1 million in proceeds from state issued bonds in the 2010 fiscal year which were not received in the 2011 fis-cal year netted against an increase of $8.7 million in capital gifts and grants.

Gifts reported reflect only a portion of the gifts available to the University. Most gifts for the benefit of the University are made to the University of Arkansas Foundation, whose financial information is presented in Note 1.

Statement of Cash Flows

The purpose of the Statement of Cash Flows is to provide information about the cash receipts and disbursements of the University for the year. This statement may aid in the assessment of the University’s ability to meet obligations as they become due, the need for external financing, and the ability to generate future cash flow. This statement is prepared using the “direct method” as required by the GASB.

Similar to operating income (loss) on the Statement of Rev-enues, Expenses, and Changes in Net Assets, net cash provided by operating activities is of little significance to the University because the GASB requires significant sources of cash to be reported as non-operating financing. The net cash provided by the combination of operating activities

June 30, 2011 June 30, 2010Operating revenues 1,704,314,652$

1,623,935,401$

Operating expenses 2,317,521,990

2,214,171,844 Operating Loss (613,207,338)

(590,236,443)

Non-operating revenues and expenses 682,497,113 643,236,816

Income before other revenues and expenses

69,289,775 53,000,373

Other revenues and expenses 37,618,369 56,065,967

Increase in Net Assets 106,908,144 109,066,340

Net Assets, beginning of year - as originally reported

1,802,256,786 1,693,190,446

Restatement of prior year 710,484

Net Assets, beginning of year - restated 1,802,967,270

1,693,190,446

Net Assets, end of year 1,909,875,414$

1,802,256,786$

Year Ended

Condensed Statement of Revenues, Expenses & Changes in Net AssetsYear Ended

Clinton School Library in Little Rock, Arkansas.







and non-capital financing activities is a much more mean-ingful number for the University. The positive amount of $236.6 million for fiscal year 2011 indicates that these ac-tivities contributed cash and liquidity for the year and was an improvement over the $217.7 million for fiscal year 2010.

Capital Assets and Long-Term Debt Activity

At June 30, 2010, the University had $2.2 billion of capital-ized assets, net of accumulated depreciation of $1.6 billion. Net capital additions in fiscal year 2011 totaled $196.4 mil-lion which was offset by a net adjustment to accumulated depreciation of $122.0 million.

Debt for bonds, notes, capital leases and installment con-tracts increased $170.7 million in fiscal year 2011. The Uni-versity issued a total of $192.2 million in bonds, $11.8 mil-lion of which represents refunding issues. Bonds issued to fund various renovation and construction projects include: $101.2 million in Various Facilities Revenue Bonds, Series 2011A (Fayetteville campus) to finance the renovation and construction of and additions to Vol Walker and Ozark Halls, construction of Hillside Auditorium, renovations to various classrooms and teaching labs, renovation to the Science building, construction of the Child Development Study Cen-ter, improvements to the Arkansas Union, construction of a hazardous waste facility, renovation and improvement to various student housing and dining facilities and vari-ous infrastructure improvements; $8.9 million in Various Facilities Revenue Bonds, Refunding Series 2011B (Fay-etteville campus) to refund outstanding bonds from a 1997 issue and a 2001 issue for an economic gain of $1.1 million; $23.5 million in Athletic Facilities Revenue Bonds, Series 2011 (Fayetteville campus) to finance a portion of a football center, football practice fields and parking facilities; $42.7 million in Various Facilities Revenue Bonds, Series 2010A (UAMS campus) to finance constructing, improving, equip-ping and furnishing the ninth floor of the new patient tower building and the eighth floor of the Winthrop P. Rockefeller Cancer Institute, improvements to a Central Energy Plant, remodeling operating rooms and adding post anesthesia re-covery rooms in the surgical suite and various other acqui-sitions and improvements; $3.7 million (taxable) to finance the costs of acquiring land and properties for expansion, as well as capital and infrastructure improvements; $9.3 mil-lion in Student Fee Revenue Bonds (Fort Smith campus) to renovate the Boreham Library; and $2.9 million in a refund-ing issue (Monticello campus). More detailed information about debt activity is presented in Note 7.

Economic Outlook

The University’s financial position increased in fiscal year 2011 with an increase of $107.6 million in net assets.

Moody’s reaffirmed the University’s rating of Aa2 for the bond issues sold in fiscal year 2011. One of the University’s greatest strengths is the diverse stream of revenue which funds its operations, including tuition, patient services rev-enue, state appropriations, investment income, grants and contracts, and support from individuals, foundations and corporations.

UAMS’ hospital and clinics are experiencing the same challenges as the general healthcare sector in the current economic environment, including potential reimbursement pressures from third-party payers, reductions in federal grant funding, rising charity care, and softening volumes. To mitigate the unfavorable impact of the current economic environment, UAMS will continue to seek other revenue and growth opportunities, reduce costs, or some combina-tion of both. Navigant Consulting, Inc. of Chicago (Navi-gant), hired in 2010, continues to assist UAMS in identifying expense reduction targets and income generating oppor-tunities. Navigant has provided management with recom-mendations to enhance the bottom line and was actively engaged with staff in implementing the necessary changes. UAMS will continue to use some of the savings to maintain significant investments in clinical and campus infrastructure in order to generate necessary productivity gains, more closely manage clinical practice and outcomes, continue to increase patient safety, and to remain compliant with an ever-growing regulatory burden. In September 2010, UAMS was the first hospital in Arkansas to receive a Level I designation from the Arkansas Department of Health for providing the highest level of trauma care. As of the end of fiscal year 2011, UAMS had been awarded $137.9 million in federal stimulus funds, including $102.1 million for the Broadband Technology Opportunities Program.

Financial support from state government remains a critical element to the continued financial health of the University. Arkansas appears to have successfully weathered the ef-fects of the national economic crisis, as general revenue forecasts are positive and the budget remains balanced. Fluctuations in general revenue distributions were minimal during 2011. Management will continue to budget conserva-tively and to emphasize cost containment.

Enrollment remains strong at the University’s campuses. The number of full-time equivalent students has increased from 42,780 to 51,196 in the academic years 2006-07 to 2010-11.

Night shot of the UAMS College of Public Health Building in Little Rock, Arkansas.

June 30, 2011 June 30, 2010Cash provided (used) by:

Operating activities (468,856,498)$ (437,475,809)$ Noncapital financing activities 705,498,516 655,202,341 Sub-Total 236,642,018 217,726,532

Capital and related financing activities (132,132,160) (186,731,229) Investing activities (74,116,564) 35,618,901

Net change in cash 30,393,294 66,614,204 Cash, beginning of year 295,758,092 229,143,888

Year Ended

Cash, end of year 326,151,386$ 295,758,092$

Condensed Statement of Cash Flows






SELECTED HIGHLIGHTS

totAL fy2011 University of ArkAnsAs system revenUes

totAL fy2011 University of ArkAnsAs system exPenses

total fy2011 revenues: $2.470 Billion

total fy2011 expenses: $2.363 Billion

State appropriations 17%

Tuition & fees, net 9%

Auxiliary enterprises 7%

Patient services, net 35%

Restricted grants & contracts

20%

Other 12%

Compensation and benefits

56% Supplies and services 26%

Depreciation 6%

Insurance plan 6%

Other 6%







UNIVERSITY OF ARKANSASStatement of Net Assets

June 30, 2011with comparative figures at June 30, 2010

June 30, 2011 June 30, 2010 ASSETS Current Cash and cash equivalents $291,710,500 $268,898,748 Investments 180,968,745 155,952,156 Accounts receivable, net of allowances of $19,714,330 & $18,353,548 95,359,453 85,795,980 Patient accounts receivable, net of allowances of $501,990,000 & $489,539,000 105,834,000 108,229,000 Inventories 27,243,681 24,397,250 Deposits and funds held in trust by others 19,158,467 1,952,030 Notes receivable, net of allowances of $820,053 & $808,464 6,608,142 6,554,966 Unamortized debt issuance costs 199,183 132,452 Other assets 9,716,740 8,175,111 Total current assets 736,798,911 660,087,693 Non-Current Cash and cash equivalents 34,440,886 26,859,344 Investments 184,773,577 152,437,794 Notes receivable, net of allowance of $4,477,248 & $4,678,629 39,297,143 41,697,104 Deposits and funds held in trust by others 218,014,402 123,858,317 Unamortized debt issuance costs 6,326,179 4,551,113 Other non-current assets 1,308,107 1,822,055 Capital assets, net of depreciation of $1,557,612,228 & $1,435,628,810 2,172,012,539 2,097,575,781 Total non-current assets 2,656,172,833 2,448,801,508 TOTAL ASSETS $3,392,971,744 $3,108,889,201 LIABILITIES Current Accounts payable and other accrued liabilities $125,282,876 $126,868,111 Deferred revenue 36,759,590 33,566,822 Funds held in trust for others 4,338,105 5,701,994 Liability for future insurance claims (Note 12) 12,840,000 10,654,000 Estimated third party payor settlements 7,245,000 11,071,000 Compensated absences payable - current portion (Note 7) 4,345,345 3,858,928 Bonds, notes, capital leases and installment contracts payable - current portion (Note 7) 48,058,350 42,776,668 Total current liabilities 238,869,266 234,497,523 Non-Current Deferred revenues, deposits and other 600,735 683,531 Refundable federal advance - Perkins loans 17,060,581 17,280,394 Compensated absences payable (Note 7) 69,167,226 66,881,249 Liability for other post employment benefits (Note 13) 35,948,985 31,257,532 Bonds, notes, capital leases and installment contracts payable (Note 7) 1,121,449,537 956,032,186 Total non-current liabilities 1,244,227,064 1,072,134,892 TOTAL LIABILITIES $1,483,096,330 $1,306,632,415 NET ASSETS Invested in capital assets, net of related debt $1,217,082,082 $1,214,124,374 Restricted Non-Expendable 58,052,936 52,337,549 Expendable 203,376,463 178,247,610 Unrestricted 431,363,933 357,547,253 TOTAL NET ASSETS $1,909,875,414 $1,802,256,786 See accompanying notes.







UNIVERSITY OF ARKANSASStatement of Revenues, Expenses and Changes in Net Assets

For The Year Ended June 30, 2011 with comparative figures for 2010 Year EndedOperating Revenues June 30, 2011 June 30, 2010 Student tuition & fees, net of scholarship allowances of $120,923,808 & $96,232,168 $221,906,279 $214,828,525 Patient services, net of contractual allowances of $963,433,000 & $894,369,000 868,685,000 834,821,000 Federal and county appropriations 13,975,256 13,883,529 Federal grants and contracts 189,794,180 175,484,971 State and local grants and contracts 53,924,947 51,649,165 Non-governmental grants and contracts 76,174,136 71,360,855 Sales and services of educational departments 59,544,876 53,703,089 Insurance plan 41,061,956 41,134,170 Auxiliary enterprises Athletics, net of scholarship allowances of $2,889,883 & $2,528,951 72,824,836 67,727,343 Housing/food service, net of scholarship allowances of $12,106,268 & $8,670,361 44,719,085 43,684,746 Bookstore, net of scholarship allowances of $3,015,882 & $2,380,463 20,650,809 18,372,590 Other auxiliary enterprises, net of scholarship allowances of $306,455 & $366,192 18,116,695 16,686,118 Other operating revenues 22,936,597 20,599,300 Total operating revenues 1,704,314,652 1,623,935,401 Operating Expenses Compensation and benefits 1,312,312,613 1,275,026,612 Supplies and services 625,891,085 597,901,714 Scholarships and fellowships 103,128,338 73,905,394 Insurance plan 133,629,624 121,438,620 Depreciation 142,560,330 145,899,504 Total operating expenses 2,317,521,990 2,214,171,844 Operating loss (613,207,338) (590,236,443) Non-Operating Revenues (Expenses) State appropriations, net of Medicaid match payments of $66,806,000 & $57,396,000 426,443,808 431,109,864 Property and sales tax 11,648,766 10,842,771 Federal grants 124,353,816 104,754,594 State and local grants 52,104,493 16,817,952 Non-governmental grants 1,389,980 1,184,249 Gifts 74,473,961 81,825,145 Investment income 35,355,451 36,634,335 Interest on capital asset-related debt (43,527,137) (40,602,707) Loss on disposal of assets (2,114,239) (1,715,612) Other 2,368,214 2,386,225 Net non-operating revenues 682,497,113 643,236,816 Income (loss) before other revenues and expenses 69,289,775 53,000,373 Other Changes in Net Assets Capital appropriations 5,012,936 6,634,818 Capital grants and gifts 31,590,946 22,917,521 Bond proceeds from Act 1282 of 2005 (Note 7) - 25,063,768 Adjustments to prior year revenues and expenses (27,035) 43,557 Other 1,041,522 1,406,303 Total other revenues and expenses 37,618,369 56,065,967 Increase in net assets 106,908,144 109,066,340 Net Assets, beginning of year as originally reported 1,802,256,786 1,693,190,446 Restatement of prior year balance (Note 21) 710,484 - Net Assets, beginning of year restated 1,802,967,270 1,693,190,446 Net Assets, end of year $1,909,875,414 $1,802,256,786 See accompanying notes.







UNIVERSITY OF ARKANSAS Statement of Cash Flows - Direct Method

For The Year Ended June 30, 2011 with comparative figures for 2010 Year Ended Cash Flows from Operating Activities June 30, 2011 June 30, 2010 Student tuition and fees (net of scholarships) $225,535,571 $217,225,805 Patient and insurance payments 862,751,000 831,384,000 Federal and county appropriations 12,636,207 14,549,660 Grants and contracts 316,793,880 291,549,557 Collection of loans and interest 4,307,522 3,829,093 Insurance plan receipts 41,074,569 41,409,413 Auxiliary enterprise revenues: Athletics 73,338,314 69,698,719 Housing and food service 44,138,184 43,657,048 Bookstore 20,237,467 18,501,653 Other auxiliary enterprises 17,807,936 16,073,670 Payments to employees (1,117,297,518) (1,092,092,996) Payment of employee benefits (187,461,352) (180,582,172) Payments to suppliers (619,039,022) (583,160,469) Loans issued to students (5,276,105) (3,608,188) Scholarships and fellowships (103,248,286) (73,899,459) Payments of insurance plan expenses (128,829,320) (120,704,683) Other 73,674,455 68,693,540 Net cash used by operating activities (468,856,498) (437,475,809)

Cash Flows from Non-capital Financing Activities State appropriations 427,687,974 440,499,896 Property and sales tax 11,069,467 10,786,473 Gifts and grants for other than capital purposes 268,318,194 204,422,846 Direct Lending, Plus and FFEL loan receipts 245,045,333 201,348,034 Direct Lending, Plus and FFEL loan payments (244,843,044) (201,904,700) Other agency funds - net (1,569,405) 9,996 Insurance proceeds - 44,926 Refunds to grantors (210,003) (5,130) Net cash provided by non-capital financing activities 705,498,516 655,202,341

Cash Flows from Capital and Related Financing Activities Distributions from trustee of current year bond proceeds & interest earnings 55,801,858 22,491,647 Distributions from trustee of prior year bond proceeds & interest earnings 71,002,736 49,352,905 Distributions from debt holders of debt proceeds other than from bonds 20,604,007 11,541,321 Capital appropriations 4,754,870 6,940,909 Capital grants and gifts 11,278,063 10,937,923 Property taxes - capital allocation 8,226 1,037 Proceeds from sale of capital assets 85,228 53,939 Bond Proceeds from Act 1282 of 2005 (Note 7) - 24,817,302 Purchases of capital assets (202,213,632) (198,486,067) Payments to trustee for bond principal (29,170,000) (45,898,194) Payments to debt holders for principal other than for bonds (20,348,745) (16,938,750) Payments to trustee for interest and fees (39,178,410) (36,799,044) Payments to debt holders for interest and fees other than for bonds (4,568,683) (4,389,078) Insurance proceeds 19,612 803,590 Refund for overpayment on capitalized item - 18,641 Construction loan - (10,972,265) Payments to trustee for reserve (207,290) (207,045) Net cash used by capital and related financing activities (132,132,160) (186,731,229) Cash Flows from Investing Activities Proceeds from sales and maturities of investments 82,882,078 148,908,762 Investment income (net of fees) 2,720,372 4,430,601 Purchases of investments (159,719,014) (117,720,462) Net cash provided (used) by investing activities (74,116,564) 35,618,901 Net increase in cash 30,393,294 66,614,204 Cash, beginning of year 295,758,092 229,143,888 Cash, end of year $326,151,386 $295,758,092







UNIVERSITY OF ARKANSASStatement of Cash Flows - Direct Method - Continued

For The Year Ended June 30, 2011 with comparative figures for 2010 Year Ended June 30, 2011 June 30, 2010 Reconciliation of net operating loss to net cash used by operating activities: Operating loss $(613,207,338) $(590,236,443)

Adjustments to reconcile net operating loss to net cash used by operating activities: Depreciation expense 142,560,330 145,899,504 Other miscellaneous operating receipts 1,970,317 2,492,232 Change in assets and liabilities: Receivables, net (5,898,964) (13,359,328) Inventories (2,846,431) (2,366,815) Prepaid expenses and other assets (964,059) (297,683) Accounts payable 607,727 5,102,255 Deferred revenue 3,180,948 4,294,064 Liability for future insurance claims 2,186,000 (266,000) Loans to students and employees (87,714) 318,598 Refundable federal advance (3,009) (465,963) Compensated absences 2,772,394 1,202,613 OPEB liability 4,691,453 5,272,947 Other liabilities (3,818,152) 4,934,210

NET CASH USED BY OPERATING ACTIVITIES $(468,856,498) $(437,475,809) Non-Cash Transactions Capital Gifts 17,907,055 11,521,408 Fixed assets acquired by incurring capital lease obligations 11,891,945 2,901,972 Fixed asset acquisition paid for by State of Arkansas 70,249 126,428 Refund of outstanding bond issues directly from bond proceeds 3,593,922 - Payment of bond proceeds/premium/accrued interest directly into deposits with trustees/escrow 158,268,542 180,071,797 Payment of bond issuance costs and underwriter’s discounts directly from bond proceeds and/or debt service reserve 1,113,120 1,792,620 Payment of interest on long-term debt from deposits with trustees 2,067,040 2,915,281 Interest earned on deposits with trustees 26,811 120,049 Payment on long-term debt directly from University of Arkansas Foundation, Inc. 1,649,491 1,403,936 Capital outlay paid directly from proceeds of long-term debt instruments 6,092,578 897,274 Capital outlay paid directly from bond proceeds from ACT 1282 of 2005 - 1,183,257 Loss on disposal of assets 1,102,567 752,839 Valuation adjustment to capital assets 524,396 43,767

See accompanying notes.






UNIVERSITY OF ARKANSAS FOUNDATION, INC.Consolidated Statement of Financial Position

June 30, 2011 and 2010

2011 2010 ASSETS Contributions receivable, net $67,127,113 $78,609,611 Interest receivable 2,881,560 2,076,577 Investments, at fair value 679,284,645 571,798,818 Cash value of life insurance 758,667 643,968 Land, buildings and equipment, net of accumulated depreciation of $255,834 in 2010 and 2009 385,752 390,752 TOTAL ASSETS $750,437,737 $653,519,726

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable $6,188,369 $5,681,299 Annuity obligations 15,966,475 16,669,037 TOTAL LIABILITIES 22,154,844 22,350,336

NET ASSETS Unrestricted 76,064,090 69,625,749 Temporarily restricted 159,825,370 151,489,115 Permanently restricted 492,393,433 410,054,526 TOTAL NET ASSETS 728,282,893 631,169,390 TOTAL LIABILITIES AND NET ASSETS $750,437,737 $653,519,726

New student complex at the Arkansas School for Mathematics, Sciences and the Arts

RELATED PRIvATE ENTITIES







UNIVERSITY OF ARKANSAS FOUNDATION, INC.Consolidated Statement of Activities

Years Ended June 30, 2011 and 2010

Year Ended June 30, 2011 Year Ended June 30, 2010 Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted TOTAL Unrestricted Restricted Restricted TOTAL Revenues, Gains and Other Support Contributions $9,185,884 $38,951,573 $20,789,614 $68,927,071 $12,125,457 $59,301,035 $20,379,836 $91,806,328 Sponsored programs 485,618 45,296 530,914 1,231,335 399,787 1,631,122 Interest and dividends 3,165,583 4,878,108 330,759 8,374,450 5,801,437 5,277,288 338,743 11,417,468 Net realized and unrealized gains on investments 12,239,522 14,798,162 61,728,444 88,766,128 17,193,821 15,095,585 28,656,166 60,945,572 Other 161,172 29,671 190,843 269,676 124,545 394,221 Net assets released from restrictions 48,045,047 (48,045,047) - 49,613,848 (49,613,848) - Total revenues, gains and other support $73,282,826 $10,657,763 $82,848,817 $166,789,406 $86,235,574 $30,584,392 $49,374,745 $166,194,711

Expenses and Losses: Program services: Construction 12,990,496 12,990,496 21,455,134 21,455,134 Research 12,822,638 12,822,638 10,242,053 10,242,053 Faculty/staff support 10,052,485 10,052,485 14,367,472 14,367,472 Scholarships and awards 8,075,659 8,075,659 6,954,482 6,954,482 Public/staff relations 2,830,998 2,830,998 2,538,153 2,538,153 Equipment 3,436,365 3,436,365 2,874,655 2,874,655 Sponsored programs 1,352,198 1,352,198 1,573,084 1,573,084 Other 12,540,494 12,540,494 12,592,218 12,592,218 Total program services 64,101,333 - - 64,101,333 72,597,251 - - 72,597,251 Supporting services: Management and general 820,773 820,773 350,617 350,617 Fund raising 1,877,351 1,877,351 2,193,246 2,193,246 Change in value of split-interest agreements 405,500 405,500 79,248 79,248 Provision for loss on uncollectible contributions 45,028 2,321,508 104,410 2,470,946 72,660 1,960,493 375,207 2,408,360 Total supporting services 2,743,152 2,321,508 509,910 5,574,570 2,616,523 1,960,493 454,455 5,031,471 Total expenses and losses 66,844,485 2,321,508 509,910 69,675,903 75,213,774 1,960,493 454,455 77,628,722 Change in Net Assets 6,438,341 8,336,255 82,338,907 97,113,503 11,021,800 28,623,899 48,920,290 88,565,989 Net Assets, beginning of year 69,625,749 151,489,115 410,054,526 631,169,390 58,603,949 122,865,216 361,134,236 542,603,401 Net Assets, end of year $76,064,090 $159,825,370 $492,393,433 $728,282,893 $69,625,749 $151,489,115 $410,054,526 $631,169,390

Lobby of the University of Arkansas for Medical Sciences Winthrop P. Rockefeller Cancer Institute







UNIVERSITY OF ARKANSAS FAYETTEVILLE CAMPUS FOUNDATION, INC.Statement of Financial Position

June 30, 2011 and 2010

2011 2010ASSETS Investments $448,201,276 $389,875,967

LIABILITIES AND NET ASSETS Accounts Payable 21,380 96,394 Net Assets: Temporarily restricted 23,045,505 21,400,707 Permanently restricted 425,134,391 368,378,866 Total Net Assets 448,179,896 389,779,573 TOTAL LIABILITIES & NET ASSETS 448,201,276 389,875,967

Sea of Razorback Red: University of Arkansas Razorback mascot, Big Red, gets the crowd pumped for the game.







UNIVERSITY OF ARKANSAS FAYETTEVILLE CAMPUS FOUNDATION, INC.Statement of Activities

Years Ended June 30, 2011 and 2010

Year Ended June 30, 2011 Year Ended June 30, 2010 Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted TOTAL Unrestricted Restricted Restricted TOTAL Revenues, Gains and Other Support Contributions $ - $180,421 $(180,421) $ - $ - $ - $ - $ - Interest and dividends $3,204,275 $187,414 3,391,689 3,189,698 220,921 3,410,619 Net realized and unrealized gains on investments 12,485,128 56,748,532 69,233,660 14,734,998 29,521,603 44,256,601 Net assets released from restrictions 14,225,026 (14,225,026) - 14,523,273 (14,523,273) - Total revenues, gains and other support 14,225,026 1,644,798 56,755,525 72,625,349 14,523,273 3,401,423 29,742,524 47,667,220 - - Expenses and Losses: - - Program services: Research 1,132,750 1,132,750 1,225,284 1,225,284 Faculty/staff support 1,819,281 1,819,281 2,046,577 2,046,577 Scholarships and awards 8,844,244 8,844,244 9,631,908 9,631,908 Equipment and technology 2,023,264 2,023,264 1,298,848 1,298,848 Other 405,487 405,487 320,656 320,656 Total program services 14,225,026 - - 14,225,026 14,523,273 - - 14,523,273 Change in Net Assets - 1,644,798 56,755,525 58,400,323 - 3,401,423 29,742,524 33,143,947 Net Assets, beginning of year - 21,400,707 368,378,866 389,779,573 - 17,999,284 338,636,342 356,635,626 Net Assets, end of year $ - $23,045,505 $425,134,391 $448,179,896 $ - $21,400,707 $368,378,866 $389,779,573

Student at the computer lab at the University of Arkansas at Monticello.






SuPPLEMENTAL INFORMATION

UNIVERSITY OF ARKANSAS Statement of Net Assets by Campus

At June 30, 2011 ASSETS UAF UAFS UALR UAM UAMS UAPB SYSTEM Current Cash and cash equivalents 115,662,390 8,801,445 25,290,458 3,895,462 86,736,000 20,571,536 14,171,878 Investments 67,717,239 16,260,175 755,317 72,674,000 20,074,616 Accounts receivable 38,216,816 4,563,158 10,991,695 2,729,836 27,442,000 5,825,724 11,573,882 Patient accounts receivable 105,834,000 Inventories 4,816,001 81,610 164,426 864,573 20,575,000 27,734 Deposits and funds held in trust by others 6,810,766 83,009 12,257,803 6,009 Notes receivable 3,765,007 51,596 2,678,000 228,085 Unamortized debt issuance costs 91,907 29,972 52,554 8,251 Other assets 3,396,357 256,389 342,149 333,926 5,089,000 8,638 173,773 Total current assets 240,476,483 13,815,583 65,359,260 8,644,970 321,028,000 26,661,717 45,994,149

Non-Current Cash and cash equivalents 2,551,343 13,216,473 49,953 4,325,093 11,473,887 Investments 74,173,750 3,093,996 8,211,573 4,252,113 93,155,000 1,317,661 Notes receivable 11,560,353 688,244 16,969,000 Deposits and funds held in trust by others 125,595,189 10,885,113 24,576,809 55,495,000 371,023 Unamortized debt issuance costs 1,636,713 282,237 916,219 59,817 3,244,000 Other non-current assets 1,308,107 1,350,000 Capital assets 879,064,115 131,043,927 210,285,751 39,996,634 738,232,000 85,110,292 3,472,039 Total non-current assets 1,095,889,570 158,521,746 244,040,305 49,321,901 907,095,000 98,272,863 4,822,039

TOTAL ASSETS 1,336,366,053 172,337,329 309,399,565 57,966,871 1,228,123,000 124,934,580 50,816,188

LIABILITIES Current Accounts payable and other accrued liabilities 41,295,090 3,259,478 9,771,996 1,542,013 70,837,000 1,516,367 6,164,047 Deferred revenue 27,303,474 151,603 54,548 32,919 8,475,000 160,465 Funds held in trust for others 1,408,211 98,413 308,331 426,692 550,000 1,318,649 Liability for future insurance claims 12,840,000 Estimated third party payor settlements 7,245,000 Compensated absences payable - current portion 1,049,944 118,506 268,715 103,577 2,596,000 135,870 9,832 Bonds, notes, capital leases, installment contracts payable - current 19,639,442 4,077,819 4,038,914 621,886 17,016,000 946,990 Total current liabilities 90,696,161 7,705,819 14,442,504 2,727,087 106,719,000 4,078,341 19,013,879

Non-Current Deferred revenues, deposits and other 4,800 107,912 20,000 133,605 Refundable federal advance - Perkins loans 13,921,000 3,062 694,806 1,911,000 530,713 Compensated absences payable 16,897,420 1,419,174 4,161,823 1,152,941 41,038,000 2,157,008 412,937 Liability for other post employment benefits 9,312,914 415,883 3,286,277 868,678 19,273,000 1,431,956 139,629 Bonds, notes, capital leases, installment contracts payable 553,331,120 82,496,544 96,212,043 11,232,883 327,749,000 21,229,993 Total non-current liabilities 593,467,254 84,334,663 103,768,055 13,949,308 389,991,000 25,483,275 552,566

TOTAL LIABILITIES 684,163,415 92,040,482 118,210,559 16,676,395 496,710,000 29,561,616 19,566,445

NET ASSETS Invested in capital assets, net of related debt 425,915,450 53,038,927 131,677,846 28,168,363 448,381,000 62,933,309 3,472,039 Restricted Non-Expendable 22,138,905 242,086 6,304,953 456,066 27,126,000 1,708,242 Expendable 65,040,840 8,307,391 9,034,414 8,498,038 88,905,000 19,858,892 Unrestricted 139,107,443 18,708,443 44,171,793 4,168,009 167,001,000 10,872,521 27,777,704 TOTAL NET ASSETS 652,202,638 80,296,847 191,189,006 41,290,476 731,413,000 95,372,964 31,249,743

uaF University of Arkansas, FayettevilleuaFS University of Arkansas at Fort Smithualr University of Arkansas at Little Rockuam University of Arkansas at Monticello

uamS University of Arkansas for Medical SciencesuaPb University of Arkansas at Pine BluffSystem University of Arkansas System

Key







ASSETS Current Cash and cash equivalents Investments Accounts receivable Patient accounts receivable Inventories Deposits and funds held in trust by others Notes receivable Unamortized debt issuance costs Other assets Total current assets

Non-Current Cash and cash equivalents Investments Notes receivable Deposits and funds held in trust by others Unamortized debt issuance costs Other non-current assets Capital assets Total non-current assets

TOTAL ASSETS

LIABILITIESCurrent Accounts payable and other accrued liabilities Deferred revenue Funds held in trust for others Liability for future insurance claims Estimated third party payor settlements Compensated absences payable - current portion Bonds, notes, capital leases, installment contracts payable - current Total current liabilities

Non-Current Deferred revenues, deposits and other Refundable federal advance - Perkins loans Compensated absences payable Liability for other post employment benefits Bonds, notes, capital leases, installment contracts payable Total non-current liabilities

TOTAL LIABILITIES

NET ASSETS Invested in capital assets, net of related debt Restricted Non-Expendable Expendable Unrestricted TOTAL NET ASSETS

Elimination CCCUA PCCUA UACCB UACCH UACCM ASMSA (See Note 17) TOTAL 2,054,752 6,055,971 2,765,884 2,797,537 916,061 1,991,126 291,710,500 621,386 371,592 101,659 2,392,761 180,968,745 529,752 1,934,825 1,045,371 882,975 984,263 63,844 (11,424,688) 95,359,453 105,834,000 59,071 308,460 19,960 326,846 27,243,681 880 19,158,467 (114,546) 6,608,142 2,268 5,664 8,567 199,183 88,842 11,010 24,584 83,348 3,541 55,183 (150,000) 9,716,740 3,294,732 8,434,737 4,150,843 3,894,046 4,623,472 2,110,153 (11,689,234) 736,798,911

1,669,842 75,000 941,795 137,500 34,440,886 69,484 500,000 184,773,577 10,972,265 (892,719) 39,297,143 395,379 147,936 228,455 319,498 218,014,402 60,292 36,340 90,561 6,326,179 (1,350,000) 1,308,107 13,915,369 24,050,843 15,710,847 14,470,094 13,672,226 2,988,402 2,172,012,539 15,654,695 24,506,514 16,470,123 14,789,110 14,933,519 14,098,167 (2,242,719) 2,656,172,833

18,949,427 32,941,251 20,620,966 18,683,156 19,556,991 16,208,320 (13,931,953) 3,392,971,744

266,469 1,009,335 233,008 134,230 314,175 514,356 (11,574,688) 125,282,876 214,625 105,382 35,990 214,969 10,615 36,759,590 20,983 17,539 23,636 52,175 74,734 38,742 4,338,105 12,840,000 7,245,000 12,076 17,253 10,213 8,091 12,889 2,379 4,345,345 247,249 228,104 509,882 466,965 379,645 (114,546) 48,058,350 761,402 1,377,613 812,729 661,461 996,412 566,092 (11,689,234) 238,869,266

334,418 1,350,000 (1,350,000) 600,735 17,060,581 229,445 498,858 490,234 320,972 280,651 107,763 69,167,226 41,403 563,092 245,542 68,238 92,843 209,530 35,948,985

5,713,750 11,386,689 3,272,841 6,279,510 3,437,883 (892,719) 1,121,449,537 5,984,598 12,783,057 4,008,617 6,668,720 3,811,377 1,667,293 (2,242,719) 1,244,227,064

6,746,000 14,160,670 4,821,346 7,330,181 4,807,789 2,233,385 (13,931,953) 1,483,096,330

7,954,370 12,498,610 11,928,123 7,723,619 10,929,759 12,460,667 1,217,082,082 76,684 58,052,936 1,865,936 890,438 223,915 224,030 478,582 48,987 203,376,463 2,306,437 5,391,533 3,647,582 3,405,326 3,340,861 1,465,281 431,363,933 12,203,427 18,780,581 15,799,620 11,352,975 14,749,202 13,974,935 - 1,909,875,414

UNIVERSITY OF ARKANSAS Statement of Net Assets by Campus

At June 30, 2011

CCCua Cossatot Community College UAPCCua Phillips Community College UAuaCCb UA Community College at Batesville

uaCCh UA Community College at HopeuaCCm UA Community College at MorriltonaSmSa Arkansas School for Mathematics, Sciences & Arts

Key







UNIVERSITY OF ARKANSAS Statement of Revenues, Expenses and Changes in Net Assets by Campus

For the Year Ended June 30, 2011

Operating Revenues UAF UAFS UALR UAM UAMS UAPB SYSTEM Student tuition & fees (net of scholarship allowances) 109,167,102 12,674,634 57,701,833 8,046,237 23,576,000 4,054,498 Net patient services 868,685,000 Federal and county appropriations 13,975,256 Federal grants and contracts 40,940,355 1,607,227 20,053,071 1,949,404 100,930,000 16,291,710 State and local grants and contracts 17,261,150 2,088,113 2,512,829 1,014,804 20,152,000 5,729,745 Non-governmental grants and contracts 17,606,040 1,883,630 3,006,007 754,389 51,386,000 41,330 Sales and services of educational departments 25,275,263 172,960 2,975,318 194,467 29,746,000 121,274 2,470,343 Insurance plan 137,704,238 Auxiliary enterprises Athletics 65,940,135 75,233 3,983,471 513,718 2,312,279 Housing and food service 23,267,801 1,961,571 2,285,071 1,527,775 6,176,000 9,268,003 Bookstore 16,593,862 490,821 476,183 1,281,047 665,000 162,504 Other auxiliary enterprises 12,116,548 116,782 2,367,956 395,925 2,531,000 298,273 Other operating revenues 8,667,851 482,623 2,330,561 568,067 7,566,000 2,713,665 Total operating revenues 350,811,363 21,553,594 97,692,300 16,245,833 1,111,413,000 40,993,281 140,174,581

Operating Expenses Compensation and benefits 373,790,938 43,099,065 113,900,296 25,079,712 757,978,000 39,043,191 4,793,804 Supplies and services 192,618,354 15,567,910 35,351,954 10,337,531 331,131,000 20,636,277 1,034,704 Scholarships and fellowships 29,557,381 9,072,740 31,329,027 9,585,118 258,000 6,008,417 Insurance plan 133,629,624 Depreciation 57,645,916 6,668,078 12,968,123 2,570,011 51,425,000 5,748,518 259,663 Total operating expenses 653,612,589 74,407,793 193,549,400 47,572,372 1,140,792,000 71,436,403 139,717,795

Operating loss (302,801,226) (52,854,199) (95,857,100) (31,326,539) (29,379,000) (30,443,122) 456,786

Non-Operating Revenues (Expenses) State appropriations 200,188,523 23,180,319 66,793,761 18,123,773 47,709,000 26,936,796 3,660,677 Property and sales tax 5,396,507 Federal grants 33,451,892 18,970,082 21,148,747 10,509,992 2,040,000 12,503,657 93,712 State and local grants 29,764,358 8,385,358 9,616,103 2,904,683 Non-governmental grants 631,809 758,171 Gifts 51,239,306 2,891,124 4,716 19,516,000 719,869 Investment income (net) 14,260,067 48,316 2,177,802 399,880 17,738,000 158,370 311,301 Interest on capital asset-related debt (19,524,953) (3,280,840) (3,440,874) (490,103) (15,015,000) (1,013,956) Loss on disposal of assets (637,817) (871,341) (130,311) (475) (379,000) (11,572) Other 2,449,266 70,934 (93,612) (214,548) 7,648 74,692 Net non-operating revenues 311,822,451 51,899,335 99,720,911 31,237,918 71,609,000 39,300,812 4,140,382 Income (loss) before other revenues and expenses 9,021,225 (954,864) 3,863,811 (88,621) 42,230,000 8,857,690 4,597,168

Other Changes in Net Assets Capital appropriations 3,240,686 236,500 227,000 363,750 353,000 168,500 Capital grants and gifts 4,481,709 427,149 1,663,146 2,387,394 16,884,000 1,978,967 Bond proceeds from Act 1282 of 2005 Adjustments to prior year revenues and expenses (74,690) 47,655 Other 226,019 541,681 216,807 Total other revenues and expenses 7,948,414 1,205,330 1,815,456 3,015,606 17,237,000 2,147,467 -

Increase (decrease) in net assets 16,969,639 250,466 5,679,267 2,926,985 59,467,000 11,005,157 4,597,168

Net Assets, beginning of year as originally reported 635,232,999 80,046,381 185,509,739 38,363,491 671,946,000 84,367,807 26,652,575 Restatement of prior year balance Net Assets, beginning of year restated 635,232,999 80,046,381 185,509,739 38,363,491 671,946,000 84,367,807 26,652,575

Net Assets, end of year 652,202,638 80,296,847 191,189,006 41,290,476 731,413,000 95,372,964 31,249,743



Key







Elimination CCCUA PCCUA UACCB UACCH UACCM ASMSA (Note 17) TOTAL 1,278,565 839,621 873,179 1,127,581 2,567,029 221,906,279 868,685,000 13,975,256 1,129,917 3,038,140 1,581,962 1,433,513 849,615 (10,734) 189,794,180 627,727 1,188,202 187,449 816,780 1,496,033 850,115 53,924,947 115,032 332,452 343,344 705,912 76,174,136 26,637 25,379 10,101 51,586 (1,524,452) 59,544,876 (96,642,282) 41,061,956 72,824,836 87,844 145,020 44,719,085 48,917 285,574 646,901 20,650,809 45,995 123,365 57,447 63,404 18,116,695 178,006 181,759 82,615 49,562 115,888 22,936,597 3,355,884 5,606,550 3,233,288 3,528,037 6,212,494 1,671,915 (98,177,468) 1,704,314,652

7,167,232 13,202,641 7,694,854 7,246,108 9,875,687 6,083,367 (96,642,282) 1,312,312,613 2,812,426 5,514,072 3,987,963 2,262,879 4,310,944 2,710,354 (2,385,283) 625,891,085 2,912,515 2,974,693 3,257,270 4,151,567 4,021,610 103,128,338 133,629,624 679,395 1,350,583 884,339 799,055 829,561 732,088 142,560,330 13,571,568 23,041,989 15,824,426 14,459,609 19,037,802 9,525,809 (99,027,565) 2,317,521,990

(10,215,684) (17,435,439) (12,591,138) (10,931,572) (12,825,308) (7,853,894) 850,097 (613,207,338)

4,625,521 10,307,275 4,852,307 6,371,618 5,999,769 7,694,469 426,443,808 1,205,211 1,975,949 1,251,458 1,132,611 687,030 11,648,766 4,238,155 5,099,874 5,411,411 4,419,225 6,467,069 124,353,816 580,680 853,311 52,104,493 1,389,980 102,946 74,473,961 15,716 64,008 42,244 5,775 85,454 48,518 35,355,451 (263,575) (53,820) (86,883) (248,576) (108,557) (43,527,137) (82,341) (1,382) (2,114,239) 82,755 (8,582) 1 (340) 2,368,214 10,422,313 17,474,659 12,315,266 11,680,654 13,130,425 7,742,987 - 682,497,113

206,629 39,220 (275,872) 749,082 305,117 (110,907) 850,097 69,289,775

137,000 75,000 74,000 137,500 5,012,936 70,000 3,481,146 277,732 500,000 289,800 (850,097) 31,590,946 - (27,035) 18,249 11,964 26,802 1,041,522 225,249 3,493,110 379,534 574,000 289,800 137,500 (850,097) 37,618,369

431,878 3,532,330 103,662 1,323,082 594,917 26,593 - 106,908,144

11,771,549 14,537,767 15,695,958 10,029,893 14,154,285 13,948,342 1,802,256,786 710,484 710,484 11,771,549 15,248,251 15,695,958 10,029,893 14,154,285 13,948,342 - 1,802,967,270 12,203,427 18,780,581 15,799,620 11,352,975 14,749,202 13,974,935 - 1,909,875,414

UNIVERSITY OF ARKANSAS Statement of Revenues, Expenses and Changes in Net Assets by Campus


Operating Revenues Student tuition & fees (net of scholarship allowances) Net patient services Federal and county appropriations Federal grants and contracts State and local grants and contracts Non-governmental grants and contracts Sales and services of educational departments Insurance plan Auxiliary enterprises Athletics Housing and food service Bookstore Other auxiliary enterprises Other operating revenues Total operating revenues

Operating Expenses Compensation and benefits Supplies and services Scholarships and fellowships Insurance plan Depreciation Total operating expenses

Operating loss

Non-Operating Revenues (Expenses) State appropriations Property and sales tax Federal grants State and local grants Non-governmental grants Gifts Investment income (net) Interest on capital asset-related debt Loss on disposal of assets Other Net non-operating revenues Income (loss) before other revenues and expenses

Other Changes in Net Assets Capital appropriations Capital grants and gifts Bond proceeds from Act 1282 of 2005 Adjustments to prior year revenues and expenses Other Total other revenues and expenses

Increase (decrease) in net assets

Net Assets, beginning of year as originally reportedRestatement of prior year balanceNet Assets, beginning of year restated Net Assets, end of year

CCCua Cossatot Community College UAPCCua Phillips Community College UAuaCCb UA Community College at Batesville

uaCCh UA Community College at HopeuaCCm UA Community College at MorriltonaSmSa Arkansas School for Mathematics, Sciences & Arts

Key







UNIVERSITY OF ARKANSAS Statement of Cash Flows - Direct Method - By Campus


Cash Flows from Operating Activities UAF UAFS UALR UAM UAMS UAPB SYSTEM Student tuition and fees (net of scholarships) 108,282,670 12,312,360 58,543,139 8,381,795 26,270,000 4,902,110 Patient and insurance payments 862,751,000 Federal and county appropriations 12,636,207 Grants and contracts 73,876,519 5,507,925 25,386,014 3,531,508 170,334,000 23,455,966 Collection of loans and interest 2,025,578 80,415 2,195,000 6,529 Insurance plan receipts 137,162,916 Auxiliary enterprise revenues: Athletics 66,579,170 75,233 3,919,234 470,650 2,294,027 Housing and food service 22,990,616 1,873,183 2,285,981 1,310,271 6,176,000 9,269,269 Bookstore 16,306,226 493,346 476,183 1,182,554 665,000 162,234 Other auxiliary enterprises 12,372,505 109,107 1,650,979 352,751 2,734,000 298,273 Payments to employees (292,715,329) (33,561,549) (90,265,370) (19,488,443) (607,697,000) (30,928,336) (3,831,361) Payment of employee benefits (79,709,178) (9,211,013) (22,697,744) (5,256,279) (145,613,000) (7,790,289) (938,835) Payments to suppliers (193,446,033) (15,348,677) (31,273,499) (10,389,336) (326,721,000) (20,958,334) (1,052,559) Loans issued to students (2,162,105) (3,114,000) Scholarships and fellowships (29,608,257) (9,072,740) (31,329,027) (9,585,118) (258,000) (6,008,417) Payments of insurance plan expenses (128,829,320) Other receipts 36,232,208 642,570 5,349,904 591,472 26,121,000 2,874,029 2,665,764 Net cash used by operating activities (246,339,203) (46,180,255) (77,954,206) (28,817,760) 13,843,000 (22,422,939) 5,176,605 Cash Flows from Non-capital Financing Activities State appropriations 200,188,524 23,180,319 66,793,761 18,123,773 48,208,000 26,936,796 3,660,677 Property and sales tax 4,938,033 Gifts and grants for other than capital purposes 114,087,541 27,359,737 34,414,144 13,419,700 38,442,000 13,223,526 93,712 Direct Lending, Plus and FFEL loan receipts 84,522,043 21,000,000 62,470,446 12,806,347 39,299,000 16,512,422 Direct Lending, Plus and FFEL loan payments (84,438,892) (21,200,832) (62,470,446) (12,854,678) (38,726,000) (16,819,349) Other agency funds - net 163,716 71,067 23,575 (910) (1,961,000) 116,960 Insurance proceeds Refunds to grantors (3) (210,000) Net cash provided (used) by non-capital financing activities 314,522,932 55,348,321 101,231,480 31,284,232 85,262,000 39,970,355 3,754,389 Cash Flows from Capital and Related Financing Activities Distributions from trustee of current year bond proceeds & interest earnings 6,565,108 49,236,000 750 Distributions from trustee of prior year bond proceeds & interest earnings 43,806,916 2,990,367 19,209,178 Distributions from debt holders of debt proceeds other than from bonds 13,827,482 5,878,000 Capital appropriations 3,240,686 31,434 227,000 363,750 300,000 168,500 Capital grants and gifts 1,040,514 427,149 1,421,161 2,318,431 1,511,834 Property taxes - capital allocation 8,226 Proceeds from sale of capital assets 13,382 2,186 67,000 Bond Proceeds from Act 1282 of 2005 Purchases of capital assets (81,781,256) (9,532,243) (43,251,309) (4,861,918) (39,166,000) (6,161,843) (97,633) Payments to trustee for bond principal (12,935,000) (2,050,000) (4,985,000) (480,000) (6,820,000) (730,000) Payments to debt holders for principal other than for bonds (3,897,904) (510,424) (98,153) (14,565,000) (585,715) (12,225) Payments to trustee for interest and fees (17,671,671) (3,224,310) (2,951,872) (478,762) (12,986,000) (976,914) Payments to debt holders for interest and fees other than for bonds (2,152,229) (98,220) (4,653) (1,930,000) (76,532) Insurance proceeds 7,648 Refund for overpayment on capitalized item Construction loan Payments to trustee for reserve (207,290) Net cash provided (used) by capital & related financing act (49,957,354) (11,543,285) (30,939,486) (3,239,119) (19,986,000) (6,842,272) (109,858)

Cash Flows from Investing Activities Proceeds from sales and maturities of investments 4,283,855 15,800,000 39,284 861,497 20,486,000 505,478 35,684,682 Investment income (net of fees) 286,398 34,497 933,751 11,001 670,000 19,407 628,579 Purchases of investments (21,347) (6,750,000) (793,799) (760,647) (107,089,000) (400,977) (40,153,244) Net cash provided (used) by investing activities 4,548,906 9,084,497 179,236 111,851 (85,933,000) 123,908 (3,839,983)

Net increase in cash 22,775,281 6,709,278 (7,482,976) (660,796) (6,814,000) 10,829,052 4,981,153 Cash, beginning of year 95,438,452 15,308,640 32,823,387 8,881,351 93,550,000 21,216,371 9,190,725 Cash, end of year 118,213,733 22,017,918 25,340,411 8,220,555 86,736,000 32,045,423 14,171,878



Key







CCCUA PCCUA UACCB UACCH UACCM ASMSA (Note 17) TOTAL 1,259,992 815,596 911,385 1,420,780 2,435,744 225,535,571 862,751,000 12,636,207 1,853,809 4,594,424 1,914,821 2,201,512 2,609,771 1,527,611 316,793,880 4,307,522 (96,088,347) 41,074,569 73,338,314 87,844 145,020 44,138,184 48,917 286,166 616,841 20,237,467 45,995 123,365 57,557 63,404 17,807,936 (5,400,790) (10,204,445) (5,813,980) (5,223,311) (7,573,343) (4,594,261) (1,117,297,518) (1,737,112) (2,991,664) (1,807,720) (1,982,391) (2,430,150) (1,384,324) 96,088,347 (187,461,352) (2,801,553) (5,995,136) (3,805,668) (2,278,551) (3,877,840) (2,764,344) 1,673,508 (619,039,022) (5,276,105) (2,912,515) (2,974,693) (3,243,621) (4,234,288) (4,021,610) (103,248,286) (128,829,320) 214,572 70,974 274,075 92,971 101,150 117,274 (1,673,508) 73,674,455 (9,523,597) (16,502,188) (11,161,177) (9,945,721) (11,931,013) (7,098,044) - (468,856,498) 4,625,521 10,307,275 5,597,472 6,371,618 5,999,769 7,694,469 427,687,974 1,275,353 1,854,113 1,226,910 1,075,497 699,561 11,069,467 4,859,759 5,315,752 6,216,029 4,419,225 6,467,069 268,318,194 397,795 4,113,764 255,424 3,668,092 245,045,333 (401,279) (4,008,052) (255,424) (3,668,092) (244,843,044) (8,434) 2,643 12,244 504 2,885 7,345 (1,569,405) - (210,003) 10,752,199 17,476,299 13,158,367 11,866,844 13,169,284 7,701,814 - 705,498,516 55,801,858

4,996,275 71,002,736 98,525 800,000 20,604,007 137,000 75,000 74,000 137,500 4,754,870 70,000 3,310,000 478,974 500,000 200,000 11,278,063 8,226 2,660 85,228 - (673,480) (10,669,704) (3,511,028) (1,208,743) (596,572) (701,903) (202,213,632) (150,000) (210,000) (495,000) (315,000) (29,170,000) (304,662) (72,745) (262,634) (39,283) (20,348,745) (542,625) (40,414) (204,937) (100,905) (39,178,410) (263,575) (41,954) (1,520) (4,568,683) 11,964 19,612 - - (207,290) (936,192) (3,116,835) (3,512,056) (1,334,680) (50,620) (564,403) - (132,132,160) 1,498,234 2,473,048 1,250,000 82,882,078 14,402 15,347 42,023 1,190 28,975 34,802 2,720,372 (500,000) (500,000) (2,750,000) (159,719,014) (485,598) 1,513,581 2,015,071 1,190 (1,471,025) 34,802 - (74,116,564)

(193,188) (629,143) 500,205 587,633 (283,374) 74,169 - 30,393,294 3,917,782 6,685,114 2,340,679 2,209,904 2,141,230 2,054,457 - 295,758,092 3,724,594 6,055,971 2,840,884 2,797,537 1,857,856 2,128,626 - 326,151,386

UNIVERSITY OF ARKANSAS Statement of Cash Flows - Direct Method - By Campus


Cash Flows from Operating Activities Student tuition and fees (net of scholarships) Patient and insurance payments Federal and county appropriations Grants and contracts Collection of loans and interest Insurance plan receipts Auxiliary enterprise revenues: Athletics Housing and food service Bookstore Other auxiliary enterprises Payments to employees Payment of employee benefits Payments to suppliers Loans issued to students Scholarships and fellowships Payments of insurance plan expenses Other receipts Net cash used by operating activities Cash Flows from Non-capital Financing Activities State appropriations Property and sales tax Gifts and grants for other than capital purposes Direct Lending, Plus and FFEL loan receipts Direct Lending, Plus and FFEL loan payments Other agency funds - net Insurance proceeds Refunds to grantors Net cash provided (used) by non-capital financing activities Cash Flows from Capital and Related Financing Activities Distributions from trustee of current year bond proceeds & interest earnings Distributions from trustee of prior year bond proceeds & interest earnings Distributions from debt holders of debt proceeds other than from bonds Capital appropriations Capital grants and gifts Property taxes - capital allocation Proceeds from sale of capital assets Bond Proceeds from Act 1282 of 2005 Purchases of capital assets Payments to trustee for bond principal Payments to debt holders for principal other than for bonds Payments to trustee for interest and fees Payments to debt holders for interest and fees other than for bonds Insurance proceeds Refund for overpayment on capitalized item Construction loan Payments to trustee for reserve Net cash provided (used) by capital & related financing act

Cash Flows from Investing Activities Proceeds from sales and maturities of investments Investment income (net of fees) Purchases of investments Net cash provided (used) by investing activities

Net increase in cash Cash, beginning of year Cash, end of year



Key

Elimination







UNIVERSITY OF ARKANSAS Statement of Cash Flows - Direct Method - Continued - By Campus

For the Year Ended June 30, 2011 Reconciliation of net operating revenue (loss) to net cash UAF UAFS UALR UAM UAMS UAPB SYSTEM provided (used) by operating activities: Operating revenue (loss) (302,801,226) (52,854,199) (95,857,100) (31,326,539) (29,379,000) (30,443,122) 456,786 Adjustments to reconcile net revenue (loss) to net cash provided (used) by operating activities: Depreciation expense 57,645,916 6,668,078 12,968,123 2,570,011 51,425,000 5,748,518 259,663 Other miscellaneous operating receipts 2,487,011 74,692 Change in assets and liabilities: Receivables, net (4,971,642) (67,041) 481,971 (112,601) (3,181,000) 2,299,097 (415,830) Inventories (3,122) (11,011) 4,572 (119,327) (2,827,000) (2,740) Prepaid expenses and other assets 694,673 (19,458) 7,536 (232,555) (1,467,000) (3,638) 7,455 Accounts payable and other accrued liabilities (1,509,672) (31,624) 3,856,008 108,534 (3,632,000) (292,195) 2,584,230 Deferred revenue 579,242 (78,443) (19,840) (18,062) 2,686,000 (25,602) Liability for future insurance claims 2,186,000 Loans to students and employees (87,714) Refundable federal advance 7,838 (10,847) Compensated Absences 549,742 95,280 241,723 204,673 1,460,000 69,464 7,260 OPEB Liability 1,087,596 118,163 362,801 108,106 2,622,000 182,484 16,349 Other liabilities (17,845) (3,864,000) 55,642

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (246,339,203) (46,180,255) (77,954,206) (28,817,760) 13,843,000 (22,422,939) 5,176,605 Non-Cash Transactions Capital Gifts 1,62

Documents

PETIT JEAN MOUNT AIN University of ArkAnsAs system · petit jean mount38 ain University of arkansas system • consolidated financial statement fy2011 The capitalized value of capital