UVA Financial Report 15-16

Page 39

NOTES TO FINANCIAL STATEMENTS

h. U nearned revenue: The composition of unearned revenue on June 30, 2016, is summarized as follows:

i. D eferred inflows of resources: The composition of deferred inflows of resources on June 30, 2016, is summarized as follows: DEFERRED INFLOWS OF RESOURCES

UNEARNED REVENUE

(in thousands)

(in thousands)

Grants and contracts

$

Student payments Medical Center unearned revenues

59,746

Deferred gain on early retirement of debt

15,829

Service concession arrangements

70,161

Pension

41,017

963

Other unearned revenues

TOTAL DEFERRED INFLOWS OF RESOURCES

23,735

TOTAL UNEARNED REVENUE

$

$

$

533

111,711

100,273

During the year ended June 30, 2015, the University entered into an agreement with Aramark Educational Services, LLC (Aramark) for Aramark to provide dining services to the University. In return for use of University facilities, Aramark is required to make certain payments to the University and the University is required to provide certain repair and maintenance services related to the facilities during the term of the agreement. In accordance with GASB requirements, as of June 30, 2016, the University has accrued a $18.5 million receivable, a $13.7 million liability and a $70.2 million deferred inflow of resources related to the service concession arrangement.

N O T E 4 : S H O R T-T E R M D E B T

Short-term debt on June 30, 2016, is summarized as follows: SHORT-TERM DEBT

BEGINNING BALANCE JULY 1, 2015

(in thousands)

ADDITIONS

REDUCTIONS

ENDING BALANCE JUNE 30, 2016

COMMERCIAL PAPER Taxable

$

Tax-exempt TOTAL COMMERCIAL PAPER

$

12,745 $

25,000

37,900

77,400

50,645 $

102,400

$ $

– $

37,745

115,300

– $

153,045

The University has a $300 million combined taxable and tax-exempt commercial paper program that is primarily used to bridge finance capital projects and, from time to time, fund operations. The Board approved the current commercial paper program limit of $300 million in April 2008. In fiscal year 2016, interest rates on commercial paper ranged from 0.01 to 0.48 percent.

F I N A N C I A L R E P O R T 2 0 1 5 –1 6

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