The University of Texas at San Antonio

FY11 Annual Financial Report

Operating Statement (SRECNA) Highlights

March 29, 2012

Annual Financial Report Highlights

The Annual Financial Report (AFR) is made up of three primary statements with many supporting schedules.

1. Balance Sheet – Explains what we own, our obligations and what is available.

2. Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) – Shows the results

of operations for the year.3. Statement of Cash Flows – Shows what revenue

came in, what was expended and what is left.

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UTSA Operating Revenues ($ in millions)

2007 2006

Student Tuition and Fees

- Net of Discounts

143.57

118.7Sponsored

Programs72.8 73.

2Sales and Services of Educational Activities

6.7 6.0Auxiliary

Enterprises15.1 14.

2Other

2.5

3.2Total Operating

Revenues240.6

215.3Total Operating

Expenses315.6

293.8Operating

Loss(75.0)Nonoperating Revenues

(Expenses):State Appropriations

98.1

97.1Gift

Contributions3.8

3.5Net Investment Income

(Loss)10.9 6.

1Net Inc. (Dec.) in Fair Value of Investments

12.4 4.1Gain/(Loss) on State of Capital

Assets(0.1)Othe

r Nonoperating

Revenues/Expenses

0.0

0.0Income (Loss) Before Other Revenues, Expenses,

Gains or Losses

50.1

32.2Gifts and Sponsored

Programs0.0

0.6Additions to Permanent

Endowments4.0

4.9Reclass From (To) Other

Institutions(48.7)

19.8

Mandatory Transfers

- Comp & Sys Admin

-Debt Svc

(19.7)

(16.6)Nonmandator

yTransfers

- Comp & Sys Admin

141.9

28.6Transfers From (To) Other State

entities(1.4)Change in Net

Assets126.2

68.7Net Assets, Beginning of the

Year635.1

566.4

Net Assets, End of the Year

761.3

635.1

UTSA Operating Revenues ($ in millions)

2011 2010

Student Tuition and Fees

Net of Discounts

174.3 170.5

Sponsored Programs

77.8 64.7

Sales and Services of Educational Activities

9.6 8.9Auxiliary

Enterprises27.4 24.0

Other

2.5

2.6Total Operating

Revenues 291.6

270.7Total Operating

Expenses 451.7

428.0 Operating

Loss( 160.1) (157.3

)Non-Operating Revenues (Expenses):

State Appropriations

112.5 121.4

Gift Contributions

6.5

8.8

Net Investment Income (Loss)

12.1

8.7

Net Inc. (Dec.) in Fair Value of Investments

23.0 17.7

Income (Loss) Before Other Revenues, Expenses, Gains or Losses

52.5 49.7

Gifts and Sponsored Programs

.1 .3Additions to Permanent

Endowments15.7 10.2

Re-Class From (To) Institutions (41.4)

13.0Mandatory

Transfers (29.7)

(31.5)

Non-Mandatory Transfers 62.1

1.2

Transfers From (To) Other State entities

(2.7) (2.3)

Change in Net Assets

56.6

40.6

Net Assets, Beginning of the Year

924.3 883.7Net Assets, End of the

Year980.9 924.

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The Statement of Revenue, Expenses, and Changes in Net Assets (SRECNA) . This statement is called the “Operating Statement” as it reports the results of operations for the year.

Tuition and Fees increased by $3.8M (2%).

Sponsored Programs increased by $13.1M (20%) due to increase in Texas Grant of $7.3M and Federal Programs of $3M.

Auxiliary Enterprises increased by $3.4M (14%) due to increases in housing, food service and parking revenue.

Operating Loss does not include State Appropriations and Pell revenue. Operating expenses outpaced operating revenues causing a slight increase of $2.8M (22%).

State Appropriations decreased by $8.9M due to budget cuts of $12.4M in FY11 and $3.5M in FY10.

Federal Non-Exchange Sponsored Programs and Non-Exchange Pass Throughs increased due to increase in Pell Awards of $7.4M.

Net Inc. (Dec.) in Fair Value of Investments increased by $5.3M due to a more positive market.

Additions to Permanent Endowments were $15.7M predominately due to McKinney Scholarship Endowment gift of $12.6M.

Mandatory Transfers represent debt service payments and Non-Mandatory Transfers represent anticipated bond proceeds used to fund construction projects.

Change in Net Assets was $56.6M. This is predominately due to increases in FMV of investments and construction projects.

Federal Non-Exchange Sponsored Programs and Non-Exchange Pass Through

50.4 58.5

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UTSA FY11 Sources of Revenue by Category

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Federal Government $108.0

23%

Institutional Resources

$62.413%

Student & Parent $174.3

36%

State of Texas $136.5

28%

Operating Sources by Category

($ in Millions)

UTSA FY11 Sources of Revenue

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Net Auxilary$27.46%

Other Income$2.41%

State Appropriations$109.122%

State Grants & Contracts$24.05%

Research Development$3.41%

Tuition & Fees$174.336%

Federal Grants & Contracts

$108.023%

Endowment & Interest Income$12.12%

Local Government Grants$1.20%

Private Gifts & Grants$9.72%

Sales & Services$9.62%

Operating Sources($ in Millions)

UTSA FY11 Uses of Funds

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Instruction$120.028%

Research$46.111%

Public Service$18.8 5%

Academic Support$40.9 10%

Student Services$23.9 6%

Institutional Support$45.1 11%

Operations and Maintenance of Plant

$40.910%

Scholarships and Fellowships

$ 43.6 8%

Auxiliary Enterprises$33.1 9%

Capital Outlay $8.9 2%

Operating Uses($ in Millions)

Reconciliation of Research Expenditures to AFR Operating Expenses - Research

Reconciliation: FY11 FY 10

Statement of Revenues, Expenses and 46,104,031 38,492,053Changes in Net Assets- Research Expenses

Facilities and Administration (F&A) 7,275,702 6,870,352

Capital Outlay 3,454,128 3,289,557

56,833,861 48,651,962

*Total Research Expenditures

* As Reported on THECB Research Expenditure Report

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Expense Classification Summary

Salaries/Wages and other Payroll Related Costs

Professional Fees and Services

Communications

Repairs and Maintenance

Scholarships and Fellowships

Depreciation and Amortization

All Other Classifications

Total Operating Expenses

FY 2010 FY2011 % Change

265,353,729 270,321,445 5%

3,606,113 5,105,843 42%

2,012,051 3,838,676 91%

9,288,890 7,361,325 -21%

42,864,024 47,920,961 12%

37,552,488 39,343,965 5%

76,312,125 77,837,262 2%

427,989,421 451,729,477 6%

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UTSA FY11 AFR Summary

UTSA continues to receive a “Satisfactory” rating from UT System as a result of a healthy financial condition.

UTSA’s operating margin ratio decreased from 3.7% for FY 2010 to 2.8% for 2011. The decrease in operating margin is attributable to growth in both total operating revenues of $20.2M and total operating expenses of $23.9M.

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