FY2015 Annual Financial Report Operating Statement (SRECNP)

Highlights

January 2016

Annual Financial Report Highlights

• Comprised of three primary statements with many supporting schedules: – Statement of Net Position (Balance Sheet)– Statement of Revenues, Expenses and Changes in Net

Position (Operating Statement or SRECNP)– Statement of Cash Flows

Statement of Revenue, Expenses, and Changes in Net Position (SRECNP)This statement reports the results of operations for the year.

Tuition and Fees increased by $14.5M. Discount and Allowances increased by $7.1M for a net increase of $7.4M. The net increase is primarily due to an earlier fall semester start date with more class days in August 2015 than in August 2014.

Other Operating Revenue increased $5.8M primarily due to an increase in educational activities sales and services, housing revenue and athletics conference revenue.

Operating Loss does not include State Appropriations or Pell revenue.

Net Investment Income increased $7.1M due to increases in both the short-term and distributed investment account earnings. That increase was offset by a $54.0M net decrease in the fair value of investments due to a decrease in long-term investments as well as market performance. Cash was needed to cover operations due to delays in state reimbursements.

Transfers include:

Mandatory: debt service payments

Non-Mandatory: anticipated bond proceeds used to fund construction projects.

Net Position decreased by $11.6M in FY 2015.

Operating Revenue FY 2015 FY2014 VARIANCEStudent Tuition and Fees, Net of Discounts 192.6$ 185.2$ 7.4$ Sponsored Programs 67.3 67.9 (0.6) Other 58.6 52.8 5.8

Total Operating Revenues 318.5 305.9 12.6 Total Operating Expenses 485.4 463.9 21.5 Operating Income (Loss) (166.9) (158.0) (8.9)

Non-Operating Revenue (Expenses)State Appropriations 125.4 122.2 3.2 Non-Exchange Sponsored Programs and Non-Exchange Pass Through 46.9 45.6 1.3 Gift Contributions for Operations 10.3 9.9 0.4 Net Investment Income 24.8 17.7 7.1 Net Inc. (Dec.) in Fair Value of Investments (28.5) 25.5 (54.0) Loss on Disposal of Capital Assets and Other Non-Operating Revenue (1.5) (0.3) (1.2)

Net Non-Operating Revenue (Expenses) 177.4 220.6 (43.2)

Income Before Other Revenue, Expenses, Gains/(Losses) and Transfers 10.6 62.6 (52.0)

Gifts and Sponsored Programs for Capital Acquisitions 2.7 3.1 (0.4) Additions to Permanent Endowments 6.5 2.6 3.9 Re-Class From (To) Institutions (3.3) 9.2 (12.5) Transfers (28.1) (31.4) 3.3

Change in Net Position (11.6) 46.1 (57.7)

Net Position, Beginning of Year 1,133.3 1,087.2 46.1 Net Position, End of Year 1,121.7$ 1,133.3$ (11.6)$

($ In Millions)

FY2015 Sources of Operating Revenue by Category

($ in Millions)

Federal Govern-ment, 83.76062, 16%

Institutional Re-sources, 101.371621,

19%

Student & Parent, 192.590017, 37%

State of Texas, 146.950855, 28%

FY2015 Sources of Operating Revenue by Category –

5 Year Trend($ in Millions)

FY15 FY14 FY13 FY12 FY110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

16.0% 17.8% 22.3% 20.1% 22.4%

19.3% 16.3%15.0% 15.3% 13.0%

36.7% 37.0%36.0% 38.9% 36.2%

28% 29% 27% 26% 28%

Federal Government Institutional Resources Student & Parent State of Texas

FY 2015 Sources of Operating Revenue

($ in Millions)

State Appropriations; 119.749777; 22.8%

State Grants & Contracts - Restricted; 21.536126; 4.1%

Research Development Funds; 5.664952; 1.1%

Tuition and Fees, Net; 192.590017; 36.7%

Federal Grants & Contracts; 83.76062; 16.0%

Endowment & Interest Income; 24.76223; 4.7%

Local Government; 3.579089; 0.7%

Private Gifts & Grants; 15.690028; 3.0%

Sales & Services; 12.162007; 2.3%

Net Auxiliary Enterprise; 42.642987; 8.1% Other Income; 2.53528; 0.5%

FY 2015 Sources of Operating Revenue – 5 Year Trend

($ in Millions)

FY15 FY14 FY13 FY12 FY110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

22.8% 23.3% 21.6% 21.6% 22.7%

36.7% 37.0% 36.0% 38.9% 36.2%

16.0% 17.8% 22.3% 20.1% 22.4%

8.1% 7.7% 6.5% 6.3% 5.7%

State Appropriations State Grants & Contracts - Restricted Research Development FundsTuition and Fees, Net Federal Grants & Contracts Endowment & Interest IncomeLocal Government Private Gifts & Grants Sales & ServicesNet Auxiliary Enterprise Other Income

FY15 Operating Uses of Funds

($ in Millions)

Instruction; 132.979959; 29.9%

Research; 42.033631; 9.4%

Public Service; 18.05108; 4.1%

Academic Support; 54.45837; 12.2%Student Services; 26.612295; 6.0%

Institutional Support; 36.729392; 8.3%

Operations & Maintenance; 42.260776; 9.5%

Scholarships & Fellowships; 33.762512; 7.6%

Auxiliary Enterprises; 50.577812; 11.4%

Capital Outlay; 7.545859; 1.7%

FY15 Operating Uses of Funds – 5 Year Trend

($ in Millions)

FY15 FY14 FY13 FY12 FY110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

29.9% 30.4% 28.3% 28.5% 28.5%

9.4% 9.0% 9.9% 9.9% 10.9%

12.2% 12.9% 12.1% 11.2% 9.7%

8.3% 9.0%8.2% 8.8% 10.7%

9.5% 9.0%10.1% 10.0% 9.7%

7.6% 7.3% 10.1% 9.9% 10.3%

11.4% 11.0% 9.9% 9.6% 7.9%

Instruction Research Public Service Academic Support

Student Services Institutional Support Operations & Maintenance Scholarships & Fellowships

Auxiliary Enterprises Capital Outlay

Reconciliation of Research Expenditures to AFR Operating Expenses - Research

Reconciliation: FY15 FY14

Statement of Revenues, Expenses and Changes in Net Assets - Research Expenses $ 42,033,631 $

37,961,038

Facilities and Administration (F&A) 6,052,113 5,609,170

Capital Outlay 3,736,342 1,811,649    

*Total Research Expenditures $ 51,822,086 $ 45,381,857

* As Reported on THECB Research Expenditure Report

FY 2015 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 increased from 2.4% for FY2014 to 3.8% for FY2015. Increase attributable to an increase in total operating

revenues of $27.9M that outpaced the growth in total operating expenses of $20.3M.

FY2015 included the revenue associated with seven additional class days.