Annual Financial Report-June 30, 1998
The University of Arizona
Annual Financial Report
For the Year Ended
June 30, 1998


Table of Contents

Introduction and Overview

Financial Statements

Governing Board and Administration

A Message from
the President

The state of a university cannot be described adequately in financial terms. Nor can a university be properly characterized in terms of the physical assets that comprise the campus, however splendid that might be. We can present a financial statement and portray the campus in terms that reflect the strength of the material assets of The University of Arizona, but neither numbers nor pictures capture the essence of this amazing institution. Only the very special people of The University of Arizona define its true quality, and people are not easily captured in an annual report.

The essential distinction of The University of Arizona is the intellectual power of its faculty. In 1998, however, this traditional measure of academic distinction is not enough. Devotion to the learning experience of our students is also a universal requirement, and I’m pleased to report that this quality is evident in full measure throughout the campus community.

Of course the numbers tell a story too, and it’s tale of dramatic progress on many fronts. We'’re enjoying very positive growth in enrollments, research support, and gift contributions, providing the financial fuel for our academic engines. Our beautiful campus is caught in the throes of the Mall Enhancement Program, which will redefine the Mall as the heart of campus. When that work is done, the singular appeal of our campus will be unsurpassed. Our physical capacity for learning through discovery will then begin to match the programmatic commitments of the University.

Peter Likins
President


Enrollment Highlights
Fiscal Year: 1997-98 1996-97 Percent Change
Enrollment Statistics
Enrollment - undergraduate (fall) 25,617 25,293 1%
Enrollment - graduate (fall) 8,120 8,211 -1%
Degrees awarded-bachelor 5,330 4,777 12%
Degrees awarded-advanced 1,949 2,110 -8%
Faculty and Staff
Faculty, Staff, and Administrators 12,574 12,454 1%
Tuition per full-time student:
Resident $ 1,988 $1,940 2%
Nonresident $8,640 $8,308 4%

Undergraduate Graduate Total
Fall 1997
Total
Fall 1996
Academic Enrollment (Headcount)
Agriculture 2,045 498 2,543 2,492
Architecture 396 38 434 439
Arizona International Campus 105 - 105 44
Arts & Sciences - General 4,299 - 4,299 4,405
Business & Public Administration 4,711 576 5,287 5,056
Education 767 808 1,575 1,545
Engineering & Mines 2,384 724 3,108 3,100
Fine Arts 2,003 270 2,273 2,258
Health-Related Professions 145 - 145 145
Humanities 954 395 1,349 1,377
Interdisciplinary Programs - 517 517 486
Law - 460 460 489
Medicine - 596 596 589
Pharmacy, Nursing, and Health Related 245 441 686 694
Science & Optical Sciences 2,918 863 3,781 3,625
Social & Behavioral Sciences 4,244 926 5,170 5,234
Correspondence/Non-Degree 401 1,008 1,409 1,526

In-State Out-of-State Total Freshmen Transfers
Admissions - Fall 1997
Undergraduate
Applications 10,063 10,783 20,846 15,275 5,571
Admissions 8,831 8,160 16,991 13,031 3,960
Matriculations 4,536 2,363 6,899 4,578 2,321
Graduate (not including Law, Medicine, and Pharmacy)
Applications 1,862 7,458 9,320
Admissions 1,441 2,488 3,929
Matriculations 1,189 1,184 2,373
I n 1998, The University of Arizona had a fall enrollment of 33,737 students from all fifty states (54% from Arizona) and 121 foreign countries. Our international student population totaled 6% of our fall 1997 enro llment,with the largest number of foreign students from the People’s Republic of China, Mexico, Japan, and India.
Our 2,045 FTE Instructional Faculty and Graduate Teaching Assistants and Associates educate a diverse student population at the U of A. Our population base includes 51% female, 13% Hispanic, 5.2% Asian or Pacific Islander, 2.4% Black, and 2.1% American I ndian or Alaskan Native.

Applications, Admissions and Matriculations
Fall 1997
UNDERGRADUATES
GRADUATES

Financial Highlights
(dollars in thousands)
Years ended June 30, 1998 and 1997.
1998 1997 Percentage Change
Major Funding Sources
State Appropriations $305,947 $288,249 6%
Federal Grants & Contracts 228,547 216,981 5%
Tuition & Fees 141,285 134,969 5%
Private Gifts and Nonfederal Grants & Contracts 107,163 92,096 16%
Interest and Dividend Income and Realized Gains <Losses> 20,058 17,987 12%
Auxiliary Enterprise Operations 82,820 82,077 1%

 

Major Funding Uses
Instruction $223,202 $210,998 6%
Research 207,212 194,947 6%
Public Service 36,847 33,175 11%
Student Services 20,230 18,976 7%
Scholarships & Fellowships 61,237 57,569 6%
Academic Support 60,545 58,257 4%
Institutional Support 51,190 51,543 -1%
Operation & Maintenance of Plant 40,455 38,854 4%
Facility Additions, Disposals, & Debt Servicing 57,188 64,055 -11%
Auxiliary Enterprise Operations 82,800 79,958 4%

 

Fair Value of Endowments $129,577 $107,000 21%

Current Unrestricted Funds
Expenditures, by Classification
General Operating Designated Auxiliary Total
Salaries and Wages $245,265 $36,663 $37,180 $319,108
Employee Related Expenses 48,142 7,208 6,961 62,311
Operations 78,921 28,624 27,068 134,613
Travel 1,592 2,962 3,379 7,933
Capital 15,074 5,162 6,860 27,096
Student Support 98 3,222 1,352 4,672
Total $389,092 $83,841 $82,800 $555,733


A Message from
Business Affairs

Financially, The University of Arizona continued to show a stable outlook and a strong performance. As the flagship and land grant institution of the State, The University of Arizona has continued to position itself to meet the challenges of the future. Offering a wide variety of undergraduate and graduate programs, including professional programs in Law, Pharmacy, and Medicine, the University provides an education to 40 percent of Arizona’s high school graduates. With steady student enrol lment near 34,000 in headcount and a projected increase of 15 percent in Arizona high school graduates by the year 2000, the institution needs to provide resources to continue its strong educational mission within the State. The University took steps to meet the increased demand by issuing $20.25 million in system revenue bonds to build an Integrated Learning Center. This facility will help address the needs of incoming freshmen students and is one part of a comprehensive program to provide a positive e xperience for new students on campus to support their success at a premier university.

During fiscal year 1998, the University also incurred approximately $8.2 million of debt to support two major research related capital improvement projects that included lab facilities in Life Sciences and an Agricultural Research Center. The research mi ssion continues to be a strong contributor of the resources for the institution, providing 25 percent of the institution’s current fund revenues for fiscal year 1998. Revenues due to research contracts increased approximately 5 percent over fiscal year 1 997. The diverse research programs pursued put the University in a favorable position to compete for research dollars nationally, and decrease the vulnerability caused by cyclical trends in funding to particular agencies or programs.

The University has seen modest increases in student tuition, with increased support from state appropriations. In addition, an increase of approximately $9 million was realized in private gifts, grants and contracts during the last period. Fundraising a nd investment returns have also added to the financial strength of the institution during the last year. Endowment balances grew significantly, increasing from $107 million on June 30, 1997, to $129 million on June 30, 1998, with investment income in the Current Funds totaling close to $14 million. These revenue trends have provided the institution with increased strength in operating reserves and fund balances.

In summary, The University of Arizona is well positioned financially to continue its important educational role within the State. The financial strength of the institution is exemplified by strong and diverse instruction, research, and public service pro grams, a manageable debt load due to funding by academic, research and auxiliary enterprises, and a varied revenue stream contributing to balanced annual operations. These strengths have resulted in solid and growing financial reserves.

This annual financial report is published for use by all interested persons and submitted as a public accounting of the University’s financial operations for the fiscal year ended June 30, 1998. The information presented in this report is designed to ena ble the reader to understand how the University managed its resources to meet the overall mission of the institution. The financial statements and additional related highlights are meant to provide evidence of continued growth and stability of the Univer sity. Comments and questions relating to the information provided in this document are always welcome.

Joel Valdez
Senior Vice President for Business Affairs
Ronald E. Smith
Assistant Vice President / Controller

Balance Sheet
(in thousands of dollars)
June 30, 1998, with comparative totals at June 30, 1997

 

Current Operating Funds
Total All Funds
Unrestricted
Memorandum Only

 

General
Operating
Funds
Designated
Funds
Auxiliary
Enterprises
Funds
Restricted
Funds
Total
Current
Operating
Funds
Student
Loan
Funds
Endowment
and Similar
Funds
Agency
Funds
Plant
Funds
1998 1997

Assets
Cash and investments at fair value (Note 4) $26,957 $42,875 $23,529 $25,364 $118,725 $1,520 $126,743 $3,786 $51,980 $302,754 $211,316
Donated land

 

 

 

209 209

 

1,746

 

243 2,198 2,207
Notes, accounts receivable and unbilled charges,
less allowance: 1998--$1,795; 1997--$1,778
156 3,304 4,231 28,362 36,053 14,636 1,088 19,750 5,319 76,846 58,224
Inventories and supplies 32 460 6,960

 

7,452

 

 

74

 

7,526 7,701
Due from other funds

 

 

 

 

 

 

 

 

130 130 63
Physical properties (Note 5)

 

 

 

 

 

 

 

 

1,342,286 1,342,286 1,307,716

Total Assets $27,145 $46,639 $34,720 $53,935 $162,439 $16,156 $129,577 $23,610 $1,399,958 $1,731,740 $1,587,227

Liabilities and Fund Balance
Liabilities:
    Accounts payable
$1,865 $3,612 $4,230 $3,339 $13,046

 

 

$321 $6,836 $20,203 $16,555
    Accrued payroll
11,207 2,557 1,976 7,711 23,451 $6

 

 

 

23,457 20,720
    Deferred revenue and deposits
2,787 2,207 4,754 275 10,023 2

 

 

79,620 89,645 93,515
    Funds held for others

 

 

 

 

 

 

 

23,289

 

23,289 15,592
    Due to other funds

 

 

130

 

130

 

 

 

 

130 63
    Certificates of participation
    and capitalized lease obligations (Note 7)

 

 

 

 

 

 

 

 

60,453 60,453 63,874

 

 

 

 

 

 

 

 

260,430 260,430 240,550

Total Liabilities 15,859 8,376 11,090 11,325

46,650 8

 

23,610 407,339 477,607 450,869
Fund Balances (Note 3) 11,286 38,263 23,630 42,610 115,789 16,148 129,577

 

992,619 1,254,133 1,136,358

Total Liabilities and Fund Balances $27,145 $46,639 $34,720 $53,935 $162,439 $16,156 $129,577 $23,610 $1,399,958 $1,731,740 $1,587,227

Fund Balances consist of:
Restricted:
    Amount obligated for outstanding purchase orders

 

 

 

$26,198 $26,198 $16

 

 

 

$26,214 $20,358
    U.S. Government grants refundable

 

 

 

 

 

12,600

 

 

 

12,600 12,365
    Endowment

 

 

 

 

 

 

$48,876

 

 

48,876 41,885
    Quasi-endowment

 

 

 

 

 

 

24,970

 

 

24,970 22,356
    Investment in joint venture (Note 11)

 

$7,674

 

 

7,674

 

 

 

 

7,674

 

    General

 

 

 

16,412 16,412 3,532

 

 

$12,883 32,827 31,071
Designated:
    Amount obligated for outstanding purchase orders
$1,200 3,820 $5,455

 

10,475

 

 

 

8,342 18,817 12,335
    Summer sessions

 

5,362

 

 

5,362

 

 

 

 

5,362 5,295
    Quasi-endowment

 

 

 

 

 

 

16,511

 

 

16,511 13,805
    General
10,086 21,371 18,175

 

49,632

 

 

 

5,265 54,897 56,500

 

36

 

 

36

 

39,220

 

118 39,374

 

Net Investment in Plant

 

 

 

 

 

 

 

 

966,011 966,011 920,388

 

$11,286 $38,263 $23,630 $42,610 $115,789 $16,148 $129,577

 

$992,619 $1,254,133 $1,136,358

See Notes (1-11) to Financial Statements.

Statement of Changes in Fund Balances
(in thousands of dollars)
June 30, 1998, with comparative totals at June 30, 1997

 

Current Operating Funds
Total All Funds
Unrestricted
Plant Funds
Memorandum Only

 

General
Operating
Funds
Designated
Funds
Auxiliary
Enterprises
Funds
Restricted
Funds
Total
Current
Operating
Funds
Student
Loan
Funds
Endowment
and Similar
Funds
Unexpended
Plant
Funds
Debt
Service
Funds
Investment
in
Plant
1998 1997

Revenues and Other Additions
Unrestricted current revenues $392,219 $121,061 $91,917

 

$605,197

 

 

 

 

 

$605,197 $577,412
Tuition and fees

 

 

 

$ 82 82

 

$602

 

 

 

684 643
Federal grants and contracts

 

 

 

188,801 188,801 $124

 

$320

 

 

189,245 180,288
State grants and contracts

 

 

 

13,807 13,807

 

 

 

 

 

13,807 10,508
Local grants and contracts

 

 

 

3,776 3,776

 

50

 

 

 

3,826 3,149
Private gifts, grants and contracts

 

 

 

62,313 62,313 30 3,884 7,017

 

$ 1,631 74,875 65,198
Federal appropriations

 

 

 

2,895 2,895

 

 

58

 

 

2,953 5,291
State appropriations

 

 

 

1,294 1,294 50 25 7,548

 

 

8,917 6,796
Interest and dividend income

 

 

 

3,831 3,831 124 220

 

$791

 

4,966 8,187
Net increase <decrease> in fair value of investments

 

 

 

(6) (6)

 

15,391 28 109

 

15,522

 

Interest on loans receivable

 

 

 

 

 

313

 

 

 

 

313 269

Additions to plant facilities including amounts expended from current funds:
1998 - $44,294;
1997 - $39,629

 

 

 

 

 

 

 

 

 

67,828 67,828 81,743
Retirement of indebtedness

 

 

 

 

 

 

 

 

 

49,779 49,779 12,949
Other financing sources - refunding

 

 

 

 

 

 

 

 

37,600 (37,600)

 

 

Other additions

 

 

 

 

 

 

 

10,468 21 4,901 15,390 6,097

Total revenues and other additions 392,219 121,061 91,917 276,793 881,990 641 20,172 25,439 38,521 86,539 1,053,302 958,530
Expenditures and Other Deductions
Educational and general expenditures 389,092 83,841

 

227,985 700,918

 

 

 

 

 

700,918 664,319
Auxiliary enterprises expenditures

 

 

82,800

 

82,800

 

 

 

 

 

82,800 79,958
Indirect costs recovered

 

 

 

45,970 45,970

 

 

 

 

 

45,970 42,246
Cancellation of loans and provision for bad debt

 

 

 

 

 

109

 

 

 

 

109 294
Administrative and collection costs

 

 

 

 

 

139

 

 

 

 

139 159
Expended for plant facilities (including noncapitalized
expenditures of $3,549 in 1998 and $5,461 in 1997)

 

 

 

 

 

 

 

27,083

 

 

27,083 47,020
Interest on indebtedness including $0 capitalized as
construction in progress in 1998 and $555 in 1997

 

 

 

 

 

 

 

 

18,578

 

18,578 19,105
Disposal of plant facilities

 

 

 

 

 

 

 

 

 

36,091 36,091 24,610
Refunded to grantors or donors

 

 

 

618 618 12 7

 

 

 

637 550
Retirement of indebtedness

 

 

 

 

 

 

 

 

49,779

 

49,779 12,949
Net effect of advance refunding

 

 

 

 

 

 

 

 

2,044

 

2,044

 

Other deductions

 

 

 

 

 

 

 

 

279

 

279 103

Total expenditures and other deductions 389,092 83,841 82,800 274,573 830,306 260 7 27,083 70,680 36,091 964,427 891,313
Transfers Among Funds
Mandatory loan fund matching grants

 

(7)

 

(7) (14) 14

 

 

 

 

 

 

Mandatory principal and interest (512) (25,833) (8,037) (20) (34,402)

 

 

20 34,382

 

 

 

Voluntary, net 505 (8,822) (1,911) 4,478

(5,750) 10 2,411 9,649 (1,497) (4,823)

 

 


Total transfers (7) (34,662) (9,948) 4,451 (40,166) 24 2,411 9,669 32,885 (4,823)

 

 


Net increases (decreases) for the year 3,120 2,558 (831) 6,671 11,518 405 22,576 8,025 726 45,625 88,875 67,217
Fund balances, beginning of year 8,166 35,795 24,461 35,939 104,361 15,743 78,046 6,461 11,361 920,386 1,136,358 1,069,141
Cumulative effect of a change in accounting principle (Note 4)

 

(90)

 

 

(90)

 

28,955

 

35

 

28,900

 













Fund balances, beginning of year, as restated 8,166 35,705 24,461 35,939 104,271 15,743 107,001 6,461 11,396 920,386 1,165,258 1,069,141
Fund balances, end of year $11,286 $38,263 $23,630 $42,610 $115,789 $16,148 $129,577 $14,486 $12,122 $966,011 $1,254,133 $1,136,358

See Notes (1-11) to Financial Statements.

Statement of Current Operating Funds Revenues, Expenditures and Other Changes
(in thousands of dollars)
June 30, 1998, with comparative totals at June 30, 1997
Unrestricted Funds
Total
Current Operating Funds

Memorandum Only

 

General
Operating
Funds
Designated
Funds
Auxiliary
Enterprises
Funds
Total
Unrestricted
Funds
Restricted
Funds
1998 1997

Revenues
State appropriations $297,030

 

 

$297,030 $768 $297,798 $282,203
Tuition and fees 90,233 $45,533 $4,835 140,601

 

140,601 134,326
Federal grants and contracts

 

39,302

 

39,302 151,132 190,434 177,606
State grants and contracts

 

1,203 6 1,209 12,629 13,838 11,091
Local grants and contracts

 

142 117 259 3,536 3,795 3,022
Private gifts, grants and contracts

 

9,333 3,854 13,187 48,954 62,141 56,802
Federal appropriations 3,305 4

 

3,309 1,734 5,043 5,078
Interest and dividend income 1,626 7,905 33 9,564 4,247 13,811 12,842
Net increase <decrease> in fair value of investments

 

167

 

167

 

167

 

Sales and services of educational departments

 

13,514

 

13,514

 

13,514 13,418
Sales and services of auxiliary enterprises

 

 

82,820 82,820

 

82,820 82,077
Other 25 3,958 252 4,235 5,012 9,247 8,064

Total current revenues 392,219 121,061 91,917 605,197 228,012 833,209 786,529

Expenditures and Mandatory Transfers
Educational and general:
    Instruction
170,803 35,478

 

206,281 16,921 223,202 210,998
    Research
44,774 8,934

 

53,708 153,504 207,212 194,947
    Public service
14,236 1,249

 

15,485 21,362 36,847 33,175
    Academic support
56,984 3,149

 

60,133 412 60,545 58,257
    Student services
12,018 7,288

 

19,306 924 20,230 18,976
    Institutional support
32,859 17,180

 

50,039 1,151 51,190 51,543
    Operation and maintenance of plant
33,389 7,066

 

40,455

 

40,455 38,854
    Scholarships and fellowships
24,029 3,497

 

27,526 33,711 61,237 57,569

Educational and general expenditures 389,092 83,841

 

472,933

227,985 700,918 664,319
Mandatory transfers:
    Loan fund matching grants

 

7

 

7 7 14 23
    Principal and interest
512 25,833

 

26,345 20 26,365 21,379


Total educational and general 389,604 109,681

 

499,285

228,012 727,297 685,721

Auxiliary enterprises:
    Expenditures

 

 

82,800 82,800

 

82,800 79,958
    Mandatory transfers for principal and interest

 

 

8,037 8,037

 

8,037 8,012

Total auxiliary enterprises

 

 

90,837 90,837

 

90,837 87,970

Total expenditures and mandatory transfers 389,604 109,681 90,837 590,122 228,012 818,134 773,691

Other transfers and additions (deductions):
Restricted receipts over transfers to revenue

 

 

 

 

2,811 2,811 1,781
Voluntary transfers, net 505 (8,822) (1,911) (10,228) 4,478 (5,750) (14,630)
Refunded to grantors

 

 

 

 

(618) (618) (550)

Net increases (decreases) in fund balances $3,120 $2,558 $(831) $4,847 $6,671 $11,518 $(561)

See Notes (1-11) to Financial Statements.

Notes to Financial Statements

Note 1. Summary of Significant Accounting Policies

A. Basis of Accounting

The accompanying financial statements present all funds under the authority of the University. The basic criterion for inclusion is the exercise of financial accountability. Financial accountability for the University remains with the State of Arizona; therefore, the University is considered part of the reporting entity for the State’s financial reporting purposes. The financial statements do not include related organizations described in Note 2.

The financial statements are presented in accordance with generally accepted accounting principles (GAAP) applicable to governmental colleges and universities as set forth in the AICPA College Guide Model as authorized in Governmental Accounting Standards Board (GASB) Statement No. 15. GASB is the recognized standard-setting body for GAAP for all State governmental entities including colleges and universities. Accordingly, the financial statements are prepared on the accrual basis of accounting, except t hat no depreciation expense is reflected. The Statement of Current Operating Funds Revenues, Expenditures and Other Changes is a statement of financial activities for current operating funds during the current reporting period. It is not intended to pres ent the results of operations or the net income or loss for the period as would a statement of income.

The methods of applying GAAP which materially affect the determination of financial position, current operating funds revenues, expenditures and other changes and the changes in fund balances are summarized below.

  • Investments are stated at fair value.
  • Inventories and supplies are stated at the lower of cost (determined by the first-in, first-out method) or market.
  • Physical properties are stated at cost at the date of acquisition or at fair market value at date received in the case of gifts. Special collections are carried at a nominal value of $1 per collection. Capital expenditures reported as current operati ng expenditures also appear as additions to the Plant Funds.
  • Tuition and fees revenue (net of refunds) includes $24,206,000 of waivers charged to Scholarships and Fellowships and $2,972,000 of waivers for faculty and staff benefits charged to the appropriate expenditure programs to which the applicable personne l relate.
  • Summer session revenue and expenditures are reported within the fiscal year in which the summer session’s program is predominantly conducted.
  • Revenue and accounts receivable include amounts received and expended by the University under Federal and State funded research, student aid, and other programs. Both the direct and indirect costs of these programs are subject to audit by cognizant g overnmental agencies or their appointees. The University expects that adjustments or repayments, if any, resulting from such audits would not have a significant effect on the financial statements.

The financial information shown for fiscal year 1996-1997 in the accompanying financial statements is included as a basis for comparison with fiscal year 1997-1998 and represents summarized totals only. Certain prior year items in the accompanying financ ial statements have been reclassified, without effect on total fund balances, revenues, or expenditures, to conform to the current year’s classifications.

B. Fund Accounting

In order to ensure observance of limitations and restrictions placed on the resources available to the University, the accounts of the University are maintained in accordance with the principles of fund accounting. Therefore, the resources are classified for accounting and reporting purposes into funds according to the activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, individual funds having similar characteristics have been combined into fund groups.

Current Operating Funds are used primarily to account for transactions which are expended in performing the primary and support missions of the University. They include the following fund groups:

  • The General Operating Funds account for activities related to the University’s State appropriated budgets as approved by the Arizona State Legislature and Arizona Board of Regents.

  • The Designated Funds account for the recovery of indirect costs from sponsored research, academic year tuition retained by the University, summer session and extension teaching programs, unrestricted gifts, departmental sales and services, and income from operating funds' investments. The resources in these funds have been designated for specific purposes by the Arizona Board of Regents and the University Administration.

  • The Auxiliary Enterprises Funds account for substantially self-supporting activities that provide services to the student body, faculty, and public. Auxiliary enterprises include student housing, bookstores, student union, stores, intercollegiate ath letics, and others.

  • The Restricted Funds account for governmental and private gifts, grants, and contracts. The purposes are restricted by the external donor or supporting agency. Funds not used for the restricted purpose may revert to the sponsor or donor. Therefore, revenues of the Restricted Funds are reported only to the extent of expenditures and mandatory transfers in the Statement of Current Operating Funds Revenues, Expenditures and Other Changes.<

Nonoperating Funds include the following fund groups:

  • The Student Loan Funds account for loans, financed primarily by the Federal government, made to assist students in the financing of their education.

  • The Endowment and Similar Funds account for private gifts and other funds requiring that the principal be invested in perpetuity and only the income be used for the purpose specified by the donor. Quasi-endowments have been established by the Arizona Board of Regents or the University Administration for the same purpose as endowments except both the principal and the income may be expended.

  • The Plant Funds account for activities relating to University properties. They include the (1) Unexpended Plant Funds, (2) Debt Service Funds, and (3) Investment in Plant Funds. The Unexpended Plant Funds represent amounts that have been appropriate d or designated for purchases of land, improvements, buildings, and equipment. The Debt Service Funds represent funds set aside to provide for payments of indebtedness primarily pursuant to terms of bond and trust indentures. The Investment in Plant Fun ds represents the total of property, buildings, equipment, and related liabilities.

  • The Agency Funds account for assets held by the University as custodian or fiscal agent for others; therefore, the transactions of this fund do not affect the Statement of Changes in Fund Balances. Agency accounts include funds held for the Universit y Physicians, Inc., Arizona Student Financial Aid Trust for Arizona State University and Northern Arizona University, Boyce Thompson Arboretum, and others.

Changes in the use of resources require an accounting transfer of the resources to the fund with the activity or objective to be accomplished. Mandatory transfers are those required to meet legally binding agreements such as bond indentures. Other trans fers result from decisions by the Arizona Board of Regents or the University Administration as to permitted use of funds.


Note 2. Related Organizations

The financial statements of The University of Arizona do not include the operations of the University of Arizona Foundation, Inc., the University Physicians, Inc., the Arizona Research Park Authority, and the Campus Research Corporation.

The University Foundation, Inc. is a nonprofit corporation controlled by a separate Board of Directors. The principal goals of the Foundation are to support The University of Arizona through various fund-raising activities, and to contribute funds to the University for support of various programs. According to the audited financial statements of the Foundation for the year ended June 30, 1997, assets, liabilities, revenues, and expenditures totaled $166 million, $23 million, $59 million, and $40 million, respectively.

The University Physicians, Inc. (UPI) is a nonprofit corporation established to provide medical services and to support The University of Arizona in its teaching and research missions. UPI is controlled by a Board of Directors comprised of the Dean, three faculty physicians, a representative of the twelve clinical department heads, and three community members. The primary purpose of UPI is to assist the University’s College of Medicine in achieving the fulfillment of its teaching and research. According t o the audited financial statements of UPI for the year ended June 30, 1997, assets, liabilities, revenues, and expenditures totaled $74 million, $31 million, $96 million, and $102 million, respectively.

Arizona Research Park Authority (ARPA) is a nonprofit corporation created with the permission of the Arizona Board of Regents (ABOR) and designated by Arizona law as a political subdivision of the State, governed by a separate board of directors which by law may not include officers or employees of ABOR. ARPA was established under the State’s industrial development authority statute to assist in the acquisition, improvement, and operation of university research parks and related properties. In August 1994 , ARPA, with the approval of ABOR, sold $98 million nontransferable special revenue bonds to International Business Machines Corporation (IBM) to enable the University to acquire from IBM a 345-acre developed industrial site (the "Research Park" ) near Tucson, Arizona, together with 1,000 acres of adjacent unimproved land (collectively, the University of Arizona Science and Technology Park or the "Park"). The transaction was accomplished through the following steps: (1) the University a greed to pay $98 million to IBM for title to the entire Park; (2) ARPA and Campus Research Corporation jointly agreed to lease the developed portion of the Park from the University for a period of 30 years with a prepaid rental of $98 million; (3) ARPA su bleases 70% of the building space in the developed portion of the Park to IBM for periods of up to 30 years for a rental sufficient to pay debt service on ARPA’s bonds; and (4) ARPA used the $98 million received from its bond sale to make the rental prepa yment to the University which, in turn, applied the money to purchase the entire Park from IBM. The bonds are payable solely from lease rentals paid by IBM. If IBM defaults or cancels its lease, the bonds must be surrendered and discharged. Title to the e ntire Park resides in the University and neither the Park nor any payments by the University secures ARPA’s bonds. Audited financial statements are not available.

Campus Research Corporation (CRC) is a nonprofit corporation governed by a separate Board of Directors and was established to assist the University in the acquisition, improvement, and operation of the Research Park and related properties. CRC leases from the University the remaining 30% of the building space of the Research Park that is not leased to ARPA (see preceding paragraph). CRC is responsible for developing presently undeveloped portions of the Park and for subleasing to the University or to thir d parties currently existing unoccupied space, newly developed space, and space now occupied by IBM or its subtenants once the current subleases expire. The University is responsible for payment of a share of operational expenses. All income received by CRC from its activities, after payment of expenses and financial reserves, will be turned over to the University. According to the audited financial statements of CRC for the year ended June 30, 1997, assets, liabilities, revenues, and expenditures totale d $7 million, $5 million, $3 million, and $2 million, respectively.


Note 3. Compensated Absences

The University has not made accruals for vacation pay. If the accruals were made, liabilities of the General Operating Funds, Designated Funds, Auxiliary Enterprises Funds and Restricted Funds would be increased by approximately $11,227,000, $1,991,000, $1,920,000, and $4,230,000, respectively. The University management believes that this omission does not have a significant effect on the accompanying financial statements as a whole based on materiality and considering that the liabilities of the Genera l Operating Funds would be funded by the subsequent year’s appropriations from the State Legislature.


Note 4. Cash and Investments

For the year ended June 30, 1998, the University adopted GASB Statement No. 31, which requires investments to be stated at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing pa rties. Investments are valued at quoted market prices, except non-participating interest bearing contracts, which are valued at cost. In accordance with GAAP, the cumulative effect of the accounting change for prior years is shown as an adjustment to b eginning fund balances on the Statement of Changes in Fund Balances. The net increase (decrease) in fair value during the year includes both realized and unrealized net capital gains and losses.

Under Arizona State law and Board of Regents’ policies, the University may invest its pooled operating funds in collateralized time certificates of deposit and repurchase agreements with commercial banks, and United States obligations such as Treasury bil ls, notes, bonds, and obligations of agencies sponsored by the United States Government.

Endowment funds are invested under the direction of an investment committee responsible for defining, developing, and implementing investment objectives, policies, and restrictions. Funds are usually invested in one of two Consolidated Endowment Pools. The primary investment objective of one pool is to maximize long-term total return from income and capital appreciation at an acceptable level of risk and volatility. The primary investment objective of the other pool is to maximize the current income ea rned. If donors restrict investments, those funds are invested separately, and the individual endowments bear all changes in value. The University has Endowments totaling $17,525,000, which are held and invested by bank trustees due to donor specificati ons.

Cash and securities on deposit with trustees for debt requirements and future construction costs are held in trust for the University by various commercial banks. Trust funds totaling $29,985,000 are invested by the trustee in accordance with the Board’s authorizing resolutions.

The University of Arizona currently invests all funds for the Arizona Student Financial Aid Trust (ASFAT), which was established by the Arizona Board of Regents and is funded by the Arizona State Legislature and student fees. Funds invested for other uni versities are recorded in the Agency Funds and include the following at fair value: Arizona State University - $8,907,000; Northern Arizona University - $4,007,000; ASU West - $726,000; ASU East - $8,000. The University’s ASFAT funds are recorded in the Endowment Funds at $7,785,000.

Deposits are made only at depository banks approved by the Board. At year-end, the University’s bank balance is $6,470,000. Of this balance, $100,000 is covered by federal depository insurance. The remaining balance is collateralized b y U.S. Government obligations held by an agent of the bank in the name of the State of Arizona.

Securities are collateralized as follows:

  1. Certificates of deposit are covered by FDIC or SIPC insurance.
  2. Repurchase agreements are collateralized by U.S. Government obligations held by the University’s custodial bank in the University’s name.
  3. Common stocks, preferred stocks, and corporate bonds are held by the University’s custodial bank in the name of the University in a book entry system. These securities were either purchased from a broker/dealer or a financial institution by the Univer sity.
  4. U.S. Treasury and Agency Government obligations:

    1. $108,503,000 is held by the University’s custodial bank in the name of the University in a book entry system. These securities were either purchased from a broker/dealer or a financial institution by the University or by investment managers on behalf of the University.
    2. $4,379,000 is held by trustees. These securities are recorded in the University’s name in the records of the trustee. The trustee acts as both custodial and purchasing agent for these investment transactions.

  5. U.S. Treasury funds are open-end mutual funds recorded in the University’s name in the records of various bank trustees. Other open-end mutual funds are held in the University’s name.
  6. Endowment funds held by trustees include deposits, mutual funds, common stocks, corporate bonds, U.S. Government obligations, obligations of agencies sponsored by the Federal Government, and mortgage backed notes receivable. These deposits and securit ies are held by the trustees as irrevocable trusts in the names of the individual donors for the benefit of the University according to the donors’ stipulations.
  7. At June 30, 1998, the University held investment contracts with both a major insurance company and a bank amounting to $1,502,000 of proceeds from the 1994A Certificates of Participation and $1,187,000 of proceeds from the 1994B Certificates of Partic ipation, respectively.

    1. The Guaranteed Investment Contract (GIC) with the insurance company is not collateralized. The insurance company is rated Aa3/AA. There is a provision in the contract requiring collateralization of the investment with U.S. Government obligations if the company’s rating falls below A2 by Moody’s or below A by Standard & Poors, or the University has the option to terminate the contract.
    2. The Bank Investment Contract (BIC) is also not collateralized. The bank is rated Aaa/AAA and there is a provision in the contract whereby if the bank’s rating falls below Aa but is at least A by Moody’s and below AA but is at least A by Standard & Poors, then the bank must collateralize the investment with U.S. Government obligations. If the rating falls below A/A, then the University has the option to terminate the contract.
Deposits and Investments at June 30, 1998, consist of the following:
Total Cost Total Fair Value
Deposits:
Cash on deposit with State Treasurer $497,000 $497,000
Cash ( 21,228,000) ( 21,228,000)
Investments:
Certificates of deposit 110,000 110,000
Repurchase agreements 66,697,000 66,697,000
Common stocks 22,548,000 58,505,000
Preferred stocks 4,450,000 4,647,000
Corporate bonds 24,866,000 25,506,000
U.S. Treasury and Agency Govt. obligations 112,014,000 112,882,000
U.S. Treasury mutual funds 24,867,000 24,867,000
Other mutual funds 1,793,000 2,383,000
Endowments held by trustees 12,053,000 17,525,000
Investment contracts (GIC & BIC) 2,689,000 2,689,000
Joint venture (Note 11) 7,674,000 7,674,000
Totals $259,030,000 $302,754,000
The cash overdraft results from an aggressive short-term investment policy in which the University invests its funds until outstanding checks are cashed.


Note 5. Physical Properties
Physical Properties at June 30, 1998, consist of the following:

Buildings and improvements $788,429,000
Land 70,588,000
Equipment 344,510,000
Library materials 127,903,000
Construction in progress 10,856,000
Total Physical Properties $1,342,286,000

In addition to expenditures through June 30, 1998, it is estimated that $150,800,000 will be required to complete projects under or planned for construction. Of that amount $5,600,000 is contractually encumbered.


Note 6. Bonds Payable

Bonds Payable at June 30, 1998, consist of the following:
Interest Year of
Maturity
Original
Issue
Currently
Outstanding
Student Housing Revenue Bonds 3.0-3.75% 2002-2008 $8,500,000 $2,325,000
1988 - System Revenue Bonds 6.3-7.0% 1999 31,950,000 250,000
1990A - System Revenue Bonds 6.5-9.0% 2003 46,300,000 4,075,000
1990B - System Revenue Bonds 6.9-9.4% 2003 39,630,000 3,180,000
1991 - System Revenue Bonds 6.0-8.5% 2010 9,665,000 1,055,000
1992 - System Revenue Refunding Bonds 3.1-6.625% 2011 113,150,000 109,565,000
1992A - System Revenue Refunding Bonds 2.9-6.2% 2016 55,490,000 52,815,000
1993 - System Revenue Refunding Bonds 2.7-5.0% 2017 42,085,000 22,935,000
1994 - System Revenue Bonds 4.8-6.35% 2014 28,500,000 9,960,000
1998 - System Revenue Bonds 3.9-5.25% 2018 54,270,000 54,270,000
Total Bonds Payable $429,540,000 $260,430,000

Principal and interest on bonds outstanding at June 30, 1998, are secured by a pledge of fees, tuition, rentals and other charges, and such obligations are generally callable by the University. Revenue bond debt service requirements to maturity, including $142,831,000 of interest, are as follows:

1999 25,254,000
2000 26,209,000
2001 26,264,000
2002 26,528,000
2003 26,409,000
Thereafter 272,597,000

Cash and securities on deposit with trustees, restricted for retirement of bonded indebtedness and renewals and replacements, are $719,000 and $632,000 respectively, at June 30, 1998, as required by the bond indentures. In addition, $19,334,000 was held by trustees for payment of future construction costs, and at June 30, 1998, the University also directly held a total of $4,927,000 for payment of future construction costs.

In fiscal years 1977, 1990, 1992, 1993, and 1998 the University refunded in advance of maturity certain outstanding revenue bonds. At June 30, 1998, the outstanding principal balance of the refunded bonds is $114,060,000, which will be paid by investment s held in trust with a carrying value of $89,814,000. These amounts are not included in the accompanying financial statements.


Note 7. Certificates of Participation and Lease Obligations

The University has entered into certain operating leases (generally, the leases include options for annual renewal) and other rental agreements for real property, equipment, and films generally for periods not in excess of one year. During the 1997-1998 f iscal year, rent expenditures amounted to $9,640,000.

The University has also acquired buildings, computers, telecommunications, farm, and other equipment, and agricultural land under various capital leases and certificates of participation (COPs). At June 30, 1998, the balance sheet includes $69,390,000 re presenting the cost of these assets included in land, buildings, and equipment.

Cash and securities on deposit with the trustee, restricted for retirement of certificates of participation, total $8,530,000 at June 30, 1998. In addition, $770,000 is held by trustees for payment of future construction costs.

In 1991 the University refunded in advance of maturity certain outstanding certificates of participation. The outstanding principal balance of $14,020,000 at June 30, 1997, was fully retired on July 15, 1997.

Summary of Future Payments at June 30:
Certificates of
Participation
Capitalized
Leases
Operating
Leases
1999 $6,142,000 $1,670,000 $338,000
2000 5,335,000 1,072,000 190,000
2001 5,337,000 709,000 32,000
2002 5,325,000 567,000
2003 5,332,000 474,000
Thereafter 63,373,000 609,000
Total minimum payments $90,844,000 $5,101,000 $560,000
Less: Amount representing interest (34,765,000) (727,000)
Present value of net minimum payments $56,079,000 $4,374,000


Note 8. Pension Plans

The University participates in one cost-sharing multiple-employer defined benefit pension plan and five defined contribution pension plans.

A. Defined Benefit Plan

Plan Description. The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined benefit pension plan that covers general employees of the University. Benefits are established by state statute and provide retireme nt, death, long-term disability, survivor, and health insurance premium benefits. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. The ASRS issues a publicly availabl e financial report that includes its financial statements and required supplementary information. That report may be obtained by writing to the ASRS, 3300 North Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910, or by calling (602) 240-2000 or (800) 621-3778.

Funding Policy. For the year ended June 30, 1998, active ASRS members and the University were each required by statute to contribute at the actuarially determined rate of 3.54 percent (3.05 percent retirement and 0.49 percent long-term disability) of the members’ annual covered payroll. The University’s portion of contributions to ASRS for the years ended June 30, 1998, 1997, and 1996 was $6,194,000, $6,160,000, and $6,379,000, respectively, which equaled the required contributions for the year. The Arizona State Legislature establishes and may amend active plan members’ and the University’s contribution rates.

B. Defined Contribution Plans

Plan Description. In accordance with A.R.S. ¤15-1628, University faculty, academic professionals, and administrative officers have the option to participate in defined contribution pension plans. For the year ended June 30, 1998, plans offered b y the Teachers Insurance Annuity Association/College Retirement Equities Fund (TIAA/CREF), Variable Annuity Life Insurance Company (VALIC), Fidelity Investments Tax-Exempt Services Company (Fidelity), and Aetna Life Insurance and Annuity Company (Aetna) were approved by the Arizona Board of Regents. These plans are administered by independent insurance and annuity companies approved by the Board. In addition, employees hired before July 1, 1972, have the option to participate in the defined contribution plan administered by the ASRS. Benefits under these plans depend solely on the contributed amounts and the returns earned on investments of those contributions. Contributions made by members vest immediately; University contributions vest after five year s of full-time employment. Member and University contributions and associated returns earned on investments may be withdrawn upon termination of employment, death, or retirement. The distribution of member contributions and associated investment earning s are made in accordance with the member’s contract with the applicable insurance and annuity company. University contributions and associated investment earnings must be distributed to the member in the form of an annuity paid over a period that is not l ess than the member's life.

Funding Policy. The Arizona State Legislature establishes and may amend active plan members’ and the University’s contribution rates. For the year ended June 30, 1998, plan members and the University were each required by statute to contribute an amount equal to 7 percent of a member’s compensation. Contributions to these plans for the year ended June 30, 1998, were as follows:

Plan University
Contributions
Member
Contributions
Total
Contributions
TIAA/CREF $9,551,000 $9,551,000 $19,102,000
VALIC 875,000 875,000 1,750,000
Fidelity 764,000 764,000 1,528,000
Aetna 264,000 264,000 528,000
ASRS System 344,000 344,000 688,000


Note 9. Self-Insurance Program

The University of Arizona is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The University of Arizona participates in a self-insurance program administered by the State of Arizona, Department of Administration, Risk Management section. Arizona statutes provide that any judgment assessed against the University not covered by insurance would be paid by the State from the self-insurance pro gram or by a future appropriation from the State Legislature. Accordingly, the University has no risk of loss beyond adjustments to future years’ premium payments to the State’s self-insurance program. All estimated losses for unsettled claims and actions of the State are determined on an actuarial basis and are included in the State of Arizona Comprehensive Annual Financial Report.


Note 10. Debt Refundings

During 1997-1998 the University sold $54,270,000 of System Revenue Bonds, Series 1998, with a net original issue premium of $521,000. The bonds are dated June 1, 1998, and have an average interest rate of 4.89%. Of the proceeds, $394,000 was placed in t rust to pay costs of issuance and the original underwriter’s discount, $19,685,000 was for future construction costs, and $34,712,000 was placed in a Depository Trust. The $34,712,000 will be used to advance refund $3,210,000 of the then outstanding $7,28 5,000 Series 1990A System Revenue Bonds, $2,505,000 of the then outstanding $5,685,000 Series 1990B System Revenue Bonds, $3,105,000 of the then outstanding $4,160,000 Series 1991 System Revenue Bonds, $15,740,000 of the then outstanding $25,700,000 Serie s 1994 System Revenue Bonds, and $7,800,000 of the then outstanding $7,800,000 Series 1997 System Revenue Bonds. The refunded bonds had average interest rates of 6.8%, 6.9%, 6.44%, 6.25%, and 3.95%, respectively.

As a result of the advance refundings, the refunded portions of the Series 1990A, 1990B, 1991, 1994, and 1997 System Revenue bonds are considered to be defeased, and the liability for those refunded bonds has been removed from the financial statements. T he advance refundings decreased the University’s total debt requirements by $911,000, and the University obtained an economic gain (difference between the present values of the old and new debt service payments) of $954,000.

During 1997-1998 the University sold $2,965,000 of Certificates of Participation, Series 1997. The certificates are dated September 1, 1997, and have an average interest rate of 4.52%. The certificate proceeds were used toward the current refunding of t he University Foundation Building lease obligation.


Note 11. Investment in Joint Venture

The University is a participant in the Large Binocular Telescope Corporation (LBT). LBT was formally incorporated as a not-for-profit corporation in August 1992 pursuant to a Memorandum of Understanding, as amended, executed on February 24, 1989, betwee n the University and Arcetri Astrophysical Observatory in Florence, Italy (Arcetri). The purpose of the joint venture is to design, develop, construct, own, operate, and maintain a binocular telescope currently being constructed in Arizona. The current members of LBT are the University, Arcetri, Research Corporation, Ohio State University, and Large Binocular Telescope Beteiligungsgesellschaft (LBTB).

The University has committed resources equivalent to 25% of the project’s construction costs and LBT’s annual operating costs. As of June 30, 1998, the University has made cash contributions of $7,674,000 toward the project’s construction costs. The rem aining cash contributions for construction are estimated to be $5,800,000. The University's ongoing financial interest represents its future viewing/observation rights. Upon completion of construction, viewing rights will be divided equally among the par ticipants in proportion to their contributions. According to the unaudited financial statements of LBT for the year ended December 31, 1997, assets, liabilities, revenues, and expenditures totaled $35 million, $500 thousand, $15 million, and $600 thousa nd, respectively.


STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL

Independent Auditors' Report

Members of the Arizona State Legislature

The Arizona Board of Regents

We have audited the accompanying balance sheet of The University of Arizona as of June 30, 1998, and the related statements of changes in fund balances and current operating funds revenues, expenditures and other changes for the year then ended. These financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The University of Arizona as of June 30, 1998, and the changes in its fund balances and its current operating funds revenues, expenditures and other changes for the year then ended in conformity with generally accepted accounting principles.

As discussed in Note 4 to the financial statements, the University changed its method of accounting for investments in fiscal year 1997-98.

Our audit was made for the purpose of forming an opinion on the financial statements of The University of Arizona taken as a whole. The accompanying supplemental schedule of bonds, certificates of participation and capitalized lease obligations as of June 30, 1998 is presented for purposes of additional analysis and are not a required part of the financial statements. Such information in the schedules has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects, in relation to the financial statements taken as a whole.

Douglas R. Norton
Auditor General
September 11, 1998


Supplemental Schedule of Bonds, Certificates of Participation and Capitalized Lease Obligations
(in thousands of dollars)
June 30, 1998
Amounts Payable
Debt Service Commitments by Fiscal Year
Interest
Rates
Year of
Maturity
Orignal
Issue
Currently
Outstanding at
June 30, 1998
1999 2000 2001 2002 2003 Thereafter

Student Housing Bonds
1962 - Sonora 3.375% 2002 $1,500 $246 $68 $66 $69 $63

 

 

1963 - Arizona 3.0 - 3.5% 2003 1,500 253 69 67 70 67 $3

 

1965 - Coronado 3.0% 2005 3,000 806 132 134 136 137 138 $211
1967 - Married Student Housing 3.75% 2008 2,500 1,020

122 123 125 121 123 609

 


Student Housing Bonds
1988 - System Revenue Bonds 6.3 - 7.0% 1999 31,950 250 268

 

 

 

 

 

1990A - System Revenue Bonds 6.5 - 9.0% 2003 46,300 4,075 1,540 1,542 1,548

 

 

 

1990B - System Revenue Bonds 6.9 - 9.4% 2003 39,630 3,180 1,209 1,211 1,208

 

 

 

1991 - System Revenue Bonds 6.0 - 8.5% 2010 9,665 1,055 304 304 309 308

 

 

1992 - System Revenue Refunding Bonds 3.1 - 6.625% 2011 113,150 109,565 8,495 13,124 13,121 13,124 13,122 104,974
1992A - System Revenue Refunding Bonds 2.9 - 6.2% 2016 55,490 52,815 3,409 3,409 3,408 3,406 3,409 79,451
1993 - System Revenue Refunding Bonds 2.7 - 5.0% 2017 42,085 22,935 5,473 1,111 1,111 1,116 1,114 21,510
1994 - System Revenue Bonds 4.8 - 6.35% 2014 28,500 9,960 1,584 1,581 1,585 1,583 1,582 4,750
1998 - System Revenue Bonds 3.9-5.25% 2018 54,270 54,270 2,581 3,537 3,574 6,603 6,918 61,092

Total bonds payable

 

 

$429,540 $260,430 $25,254 $26,209 $26,264 $26,528 $26,409 $272,597

 


Certificates of Participation and Capitalized Lease Obligations
1991 - Telecommunication Certificates 4.6 - 6.5% 2012 25,995 18,415 2,645 1,847 1,848 1,845 1,843 18,278
1992 - Educational Certificates 3.2 - 6.4% 2007 4,670 3,510 472 472 472 470 471 2,333
1994A - Residence Life Certificates 4.1 - 5.8% 2014 16,725 15,530 1,470 1,469 1,471 1,470 1,467 16,152
1994B - Maingate Admin Certificates 4.25 - 6.0% 2024 16,170 15,660 1,178 1,180 1,180 1,180 1,183 24,793
1997 - Alumni Foundation Building Certificates 3.8 - 4.5% 2008 2,965 2,965 377 367 366 360 368 1,817
Agriculture Demonstration Farm Lease 9.0% 2003 2,282 972 250 250 250 250 250

 

Other Capitalized Leases 4.9 - 9.5% Various 5,769 3,401 1,420 822 459 317 224 609

Total certificates of participation and capitalized lease obligations $74,576 $60,453 $7,812 $6,407 $6,046 $5,892 $5,806 $63,982

 


Refunded Bonds:

1977- Revenue Refunding

6.0% 2002 22,315 16,315
1990A - System Revenue Bonds 6.5 - 9.0% 2015 36,420 35,645
1990B - System Revenue Bonds 6.9 - 9.4% 2016 31,710 31,030
1991 - System Revenue Bonds 6.5 - 8.5% 2017 7,530 7,530
1994 - System Revenue Bonds 5.95-6.35% 2014 15,740 15,740
1997 - System Revenue Bonds 3.95% 1999 7,800 7,800

Total refunded bonds

 

 

$121,515 $114,060


Arizona Board of Regents

EX-OFFICIO
The Honorable Jane Dee Hull
Governor of Arizona
The Honorable Lisa Graham Keegan
Superintendent of Public Instruction
APPOINTED
George H. Amos III
Tucson
Kay McKay
Flagstaff
Rudy Campbell
Tempe
John F. Munger
Tucson
Judy Gignac
Sierra Vista
Don Ulrich
Paradise Valley
Chris Herstam
Phoenix
John Platt
Student Regent
Jack Jewett
Tucson

The University of Arizona Executive Administration

Peter W. Likins
President

Paul Sypherd
Senior Vice President for Academic Affairs & Provost

Joel D.Valdez
Senior Vice President for Business Affairs

Michael A. Cusanovich
Vice President for Research and Graduate Studies

James E. Dalen
Vice President, Health Sciences

Michael R. Gottfredson
Vice President for Undergraduate Education

Saundra Taylor
Vice President for Campus Life

Ronald E. Smith
Assistant Vice President/Controller


Return to top