The University’s Results of Operations The statement of revenues, expenses and changes in net assets is a presentation of the University’s operating results. It indicates whether the financial condition has improved or deteriorated. In accordance with GASB requirements, certain significant revenues relied upon and budgeted for fundamental operational support of the core instructional mission of the University are required to be recorded as nonoperating revenues, including state educational appropriations, private gifts and investment income. A summarized comparison of the operating results for 2008, 2007 and 2006, arranged in a format that matches the revenue supporting the core activities of the University with the expenses associated with core activities, is as follows: (in millions of dollars)
OPERATING NONOPERATING TOTAL
2008
2007
OPERATING NONOPERATING TOTAL
2006
OPERATING NONOPERATING TOTAL
REVENUES Student tuition and fees, net $ 1,922 $ 1,922 $ 1,738 $ 1,738 $ 1,663 $ 1,663 State educational appropriations $ 2,975 2,975 $ 2,793 2,793 $ 2,573 2,573 Grants and contracts, net 4,515 4,515 4,316 4,316 4,145 4,145 Medical centers, educational activities and auxiliary enterprises, net 7,415 7,415 6,788 6,788 6,222 6,222 Department of Energy laboratories 1,049 1,049 2,188 2,188 4,232 4,232 Private gifts, net 734 734 681 681 624 624 Investment income, net 532 532 508 508 446 446 Other revenues 558 164 722 435 157 592 508 147 655 Revenues supporting core activities 15,459 4,405 19,864 15,465 4,139 19,604 16,770 3,790 20,560 EXPENSES Salaries and benefits 12,401 Scholarships and fellowships 428 Utilities 392 Supplies and materials 2,102 Depreciation and amortization 1,094 Department of Energy laboratories 1,039 Interest expense 400 Other expenses 2,708 25 Expenses associated with core activities 20,164 425 Income (loss) from core activities $ (4,705 ) $ 3,980
12,401 10,313 428 401 392 372 2,102 1,910 1,094 1,049 1,039 2,170 400 2,733 2,509 20,589 18,724 (725 ) $ (3,259 )
10,313 9,488 9,488 401 358 358 372 350 350 1,910 1,827 1,827 1,049 997 997 2,170 4,198 4,198 385 385 347 347 (11 ) 2,498 2,299 20 2,319 374 19,098 19,517 367 19,884 $ 3,765 506 $ (2,747 ) $ 3,423 676
OTHER NONOPERATING ACTIVITIES Net (depreciation) appreciation in fair value of investments Income (loss) before other changes in net assets
(192 ) 949 (917 ) 1,455
OTHER CHANGES IN NET ASSETS State capital appropriations Capital gifts and grants, net Permanent endowments Increase (decrease) in net assets
394 293 220 245 217 167 35 39 44 (243 ) 2,004 1,422
NET ASSETS Beginning of year End of year
22,404 $ 22,161
20,400 $ 22,404
315 991
18,978 $ 20,400
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