MARCH 2009 REPORT NO. 2009-160 UNIVERSITY OF CENTRAL FLORIDA A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (C ONTINUED) J UNE 30, 2008 -37- Bookstore Housin g Facilit y Parkin g Facilit y Health Center Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bonds Operating Revenues 2,276,564$ 20,361,472$ 13,672,685$ 12,400,058$ Depreciation Expenses (155,355) (3,542,963) (1,593,628) (439,416) Other Operating Expenses (361,196) (10,842,923) (7,112,998) (10,506,166) Operating Income 1,760,013 5,975,586 4,966,059 1,454,476 Nonoperating Revenues (Expenses): Nonoperating Revenue 43,043 1,329,104 956,198 140,514 Interest Expense (119,673) (4,047,569) (1,510,015) (319,240) Nonoperating Expenses (132) (2,425,311) (2,360) (25,528) Net Nonoperating Expenses (76,762) (5,143,776) (556,177) (204,254) Income Before Other Revenues, Expenses, Gains, or Losses 1,683,251 831,810 4,409,882 1,250,222 Other Revenue, Expenses, Gains, or Losses (1,528,800) 2,134,526 (341,671) (643,583) Increase in Net Assets 154,451 2,966,336 4,068,211 606,639 Net Assets, Beginning of Year 2,516,873 (141,736) 13,154,278 3,863,522 Net Assets, End of Year 2,671,324$ 2,824,600$ 17,222,489$ 4,470,161$ Condensed Statement of Revenues, Expenses, and Changes in Net Assets Bookstore Housing Facility Parking Facility Health Center Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bonds Net Cash Provided (Used) by: Operating Activities 1,865,668$ 9,873,898$ 6,692,952$ 1,945,714$ Noncapital Financing Activities (1,528,866) 246,865 (625,541) (656,846) Capital and Related Financing Activities (269,399) (11,685,514) (4,402,451) (763,241) Investing Activities (903,273) 1,109,919 (2,695,659) (1,337,019) Net Decrease in Cash and Cash Equivalents (835,870) (454,832) (1,030,699) (811,392) Cash and Cash Equivalents, Beginning of Year 984,216 1,918,026 1,919,331 1,043,054 Cash and Cash Equivalents, End of Year 148,346$ 1,463,194$ 888,632$ 231,662$ Condensed Statement of Cash Flows 21. COMPONENT UNITS The University has five discretely presented component units as discussed in note 1. These component units comprise 100 percent of the transactions and account balances of the aggregate discretely presented component units’ columns of the financial statements. The following financial information is from the most recently available audited financial statements for the component units: This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-160 UNIVERSITY OF CENTRAL FLORIDA A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (C ONTINUED) J UNE 30, 2008 -38- University of University of UCF UCF Golden Total Central Florida Central Florida Athletics Convocation Knights Foundation, Research Association, Corporation Corporation Inc. Foundation, Inc. Inc. Condensed Statement of Net Assets Assets: Current Assets 44,673,792$ 4,795,678$ 6,085,467$ 37,719,983$ 10,834,126$ 104,109,046$ Capital Assets, Net 75,086,607 14,769,722 201,479,075 58,031,967 349,367,371 Other Noncurrent Assets 135,513,392 432,312 10,189,874 1,925,846 148,061,424 Total Assets 255,273,791 5,227,990 20,855,189 249,388,932 70,791,939 601,537,841 Liabilities: Current Liabilities 18,699,449 4,049,458 10,728,801 13,003,360 3,944,089 50,425,157 Noncurrent Liabilities 26,411,774 10,709,761 244,132,245 62,874,718 344,128,498 Total Liabilities 45,111,223 4,049,458 21,438,562 257,135,605 66,818,807 394,553,655 Net Assets: Invested in Capital Assets, Net of Related Debt 41,910,270 9,284,179 (3,607,527) (4,842,751) 42,744,171 Restricted 153,432,190 8,417,985 161,850,175 Unrestricted 14,820,108 1,178,532 (9,867,552) (4,139,146) 397,898 2,389,840 Total Net Assets 210,162,568$ 1,178,532$ (583,373)$ (7,746,673)$ 3,973,132$ 206,984,186$ Condensed Statement of Revenues, Expenses, and Changes in Net Assets Operating Revenues 23,569,270$ 3,144,103$ 29,000,829$ 24,449,630$ 3,103,866$ 83,267,698$ Operating Expenses 49,983,292 2,998,661 31,275,027 20,588,563 3,778,783 108,624,326 Operating Income (Loss) (26,414,022) 145,442 (2,274,198) 3,861,067 (674,917) (25,356,628) Net Nonoperating Revenues (Expenses) 3,389,999 144,078 2,123,082 (9,448,675) 1,716,142 (2,075,374) Other Revenues, Expenses, Gains and Losses 10,809,768 10,809,768 Increase (Decrease) in Net Assets (12,214,255) 289,520 (151,116) (5,587,608) 1,041,225 (16,622,234) Net Assets, Beginning of Year 222,376,823 889,012 (432,257) (2,159,065) 2,931,907 223,606,420 Net Assets, End of Year 210,162,568$ 1,178,532$ (583,373)$ (7,746,673)$ 3,973,132$ 206,984,186$ This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-160 AUDITOR GENERAL STATE OF FLORIDA G74 Claude Pepper Building 111 West Madison Street Tallahassee, Florida 32399-1450 DAVID W. MARTIN, CP A AUDITOR GENERAL PHONE: 850-488-5534 FAX: 850-488-6975 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We audited the financial statements of the University of Central Florida, a component unit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2008, which collectively comprise the University’s basic financial statements, and have issued our report thereon included under the heading INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS. Our report on the financial statements was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Other auditors audited the financial statements of the aggregate discretely presented component units as described in our report on the University’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit, we considered the University’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purposes of expressing an opinion on the effectiveness of the University’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the -39- This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-160 University’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the University’s financial statements that is more than inconsequential will not be prevented or detected by the University’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the University’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the University’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Pursuant to Section 11.45(4), Florida Statutes, this report is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, Federal and other granting agencies, and applicable management and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, David W. Martin, CPA February 26, 2009 -40- This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-160 -41- PRIOR AUDIT FOLLOW-UP The University had taken corrective actions for findings included in our report No. 2008-129. This is trial version www.adultpdf.com . audited the financial statements of the University of Central Florida, a component unit of the State of Florida, and its aggregate discretely presented component units as of and for the fiscal year. in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Other auditors. MARCH 2009 REPORT NO. 2009- 160 UNIVERSITY OF CENTRAL FLORIDA A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (C ONTINUED) J UNE 30, 2008 -37- Bookstore Housin g