FLORIDA ATLANTICU N I V E R S I T YFLORIDA ATLANTICU N I V E R S I T Y

1998-99ANNUAL FINANCIAL REPORT

1998-99ANNUAL FINANCIAL REPORT

MISSIONSTATEMENT

Financial Affairs’ primary purpose

is to enhance the academic effective-

ness of the University, students,

faculty and staff by providing

support services specifically related

to fiscal management, personnel

services, purchasing and bursar

funct ions and adminis trat ive

technology. The divisions within

Financial Affairs are dedicated to

providing and maintaining a work and educational environment that encourages excellence and improved

productivity through the utilization of the latest information and management technologies and their

application within the human and fiscal resources of the University.

Introduction from the Vice President for Finance and Chief Fiscal Officer 2

Message from the President 3

University Administration 4

Overview 6

Highlights 8

University Profile 11

Combined Balance Sheet 14

Combined Statement of Changes 16in Fund Balances

Combined Statement of Current Funds Revenues, 18Expenditures and Other Changes

Summary of Significant Accounting Policies 19

Notes to the Financial Statements 21

Contents

FLORIDA ATLANTICU N I V E R S I T Y

Dear Friends of Florida Atlantic University:

I am pleased to present to you the 1998-99 Annual Financial Report for Florida Atlantic University.Included in this report are a message from President Anthony James Catanese, an overview of theUniversity, financial highlights, general purpose financial statements with accompanying notes andsupplemental information.

Florida Atlantic University is a public university committed through its distributed campus structure toproviding access to significant educational opportunities for students in Southeast Florida and beyond.Located in a rapidly expanding urban environment, the University is responsible for providing academicprograms to the counties of Palm Beach, Broward, Indian River, Martin, St. Lucie and Okeechobee. TheUniversity’s mission is to prepare students to make meaningful contributions in an increasingly complexglobal society and to support research and service that enhances economic, human and culturaldevelopment. The Division of Financial Affairs assists the University in its mission by providing thehighest possible level of service to students, faculty and staff and by implementing innovative, efficientand cost-effective programs.

The financial statements presented in this report present a summary of the University’s flow of financialresources during the period July 1, 1998 to June 30, 1999, and have been prepared in accordance withgenerally accepted accounting principles as recommended by the National Association of College andUniversity Business Officers (NACUBO) as published under the title “College and University BusinessAdministration.” These financial statements present the University’s financial position, changes in fundbalances and current funds revenues, expenditures and other changes. The information contained inthese statements provides an overview of the financial health of the institution and an assessment of theUniversity’s ability to meet the financial requirements associated with its mission.

Sincerely,

Kenneth A. Jessell, Ph.D.Vice President for Financeand Chief Fiscal Officer

A University of Promise

The achievements of the University during the final academic year of the century offered cause for celebration,not only for what we have accomplished, but what we see in our future.

Florida Atlantic University was recognized this year by General Colin Powell’s America’s Promise–Alliance forYouth as the nation’s 12th University of Promise. While this is a prestigious acknowledgment of ourcommitment to young people and our community, the award also sums up my vision of the University. FAU isa University of Promise–promises kept to the region to provide increased access to quality higher educationalopportunities and promises made to expand and enhance our teaching, research and service efforts to serve ourSouth Florida community.

Our enrollment once again broke new records, with more than 19,000 students taking classes on FAU’s sevencampuses. More than 1,500 first-time-in-college freshmen came to FAU to begin their college experience on theBoca Raton campus, as we began recruiting our inaugural class of outstanding students for the University’s newHonors College.

While we moved forward on construction of the Honors College and other buildings on the John D. MacArthurcampus at Jupiter, we unveiled plans to link our campus in Port St. Lucie with Indian River Community Collegewith new joint-use facilities. We opened spectacular state-of-the-art laboratory and classroom facilities on theBoca Raton campus in the Physical Sciences Building and on the Davie campus in the Education and ScienceBuilding.

Our baseball team broke into the record books by tying a 22-year-old record for the most consecutive single-season victories and finished the season with one of the best records in college baseball. To me it is nocoincidence that our cheerleading team brought home a national championship this year–at FAU we all have agreat deal to cheer about!

Sincerely,

Anthony James CatanesePresident and Professor

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MESSAGE FROM THE PRESIDENTINTRODUCTION FROM THE VICE PRESIDENTFOR FINANCE AND CHIEF FISCAL OFFICER

UNIVERSITY PRESIDENTAnthony James CataneseChief Aide to the President, Anne BrackOmbudsman, Anthony LombardoGeneral Counsel, Ondina FelipeInspector General, Morley BarnettDirector of Equal Opportunity Programs, Paula Behul

PROVOST AND CHIEF ACADEMIC OFFICERRichard OsburnVice President, Broward Campuses, Mary McBrideVice President, Northern Campuses, Robert HuckshornVice Provost, Nathan DeanAssociate Provost, Academic Personnel, James FisherAssociate Provost, Academic Budget, Norman KaufmanAssociate Provost, Boca Raton Campus, Diane AlperinAssociate Provost, Information Resource Management,

Jeffrey SchilitAssistant Provost, Enrollment Management,

Michael ArmstrongAssistant Provost, Institutional Effectiveness and Analysis,

Sharron RoncoUniversity Registrar, Harry DeMikSpecial Assistant to the Provost, Dorothy LelandAssistant Vice Provost, Undergraduate Studies,

Mikki MinneyDirector of Center for Environmental Studies, Leonard BerryDirector of Honors Program, Fred FejesDirector of Institute of Government, Sarah ShannonDirector of International Programs, William StrongeDirector of Joint Center for Environmental and Urban Problems,

James MurleyDirector of Learning Resources, W. Douglas TrabertDirector of Lifelong Learning, Ely MeyersonDirector of Small Business Development Center, Nancy YoungDirector of Telecommunications, Elise AngiolilloDirector of Wimberly Libraries, William MillerActing Director of Women’s Studies Center, Leslie Terry

DEANSCollege of Architecture, Urban and Public Affairs, Rosalyn CarterDorothy F. Schmidt College of Arts and Letters, James LamareCollege of Business, Bruce MallenCollege of Education, Gerald LaffertyCollege of Engineering, John JurewiczHonors College, William MechCollege of Liberal Arts, Charles WhiteCollege of Nursing, Anne BoykinCharles E. Schmidt College of Science, John WiesenfeldOpen University and Continuing Education, B. Ray Holland

VICE PRESIDENT FOR FINANCEAND CHIEF FISCAL OFFICERKenneth JessellAssociate Vice President, Dennis CrudeleAssistant Vice President and University Budget Director,

Patricia SeitaSpecial Assistant to the Vice President, Ronald StubbsUniversity Controller, Jay SemmelDirector of Personnel Services, John PettingillDirector of Purchasing, Ed SchiffDirector of Administrative Technology Systems,

Rosanna Star Berzok

VICE PRESIDENT FOR BROWARD CAMPUSESMary McBrideAssociate Vice President, Joyanne StephensActing Associate Vice President, Ken WiantAssistant Vice President, Idiculla JohnAssistant Vice President, Nancy Botero

VICE PRESIDENT FOR NORTHERN CAMPUSESRobert HuckshornAssociate Vice President, Kristen Murtaugh

VICE PRESIDENT FOR RESEARCHRuth Tappen (Acting)Director of Sponsored Research, Gerald GoldbergerExecutive Director of FAU Research Corp, Scott EllingtonExecutive Director of FAU Research and Development Authority,

Scott Ellington

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UNIVERSITY ADMINISTRATIONVICE PRESIDENT FOR STUDENT AFFAIRSEmanuel NewsomeAssistant Vice President for Operations Management,

Constance FoleyAssistant to the Vice President and Director of Community

College & Transfer Student Relations, Blair ThorburnDean of Students, Leslie BatesStudent Affairs, Davie/Fort Lauderdale, Marion MerzerStudent Affairs, Northern Campuses, Joseph IsadoreDirector of Admissions, Richard GriffinDirector of Athletics, Thomas CargillDirector of Business Services, Sergio PalacioDirector of Career Development Center, Bob CramerDirector of Counseling Center, Thomas DorworthDirector of Football Operations, Howard SchnellenbergerDirector of Health Services, Cathie WallaceDirector of Housing and Residence Life, Rosanne ProiteDirector of International Student and Scholars Services,

Susan D’AmicoManager of Mail Center, Garland JacksonDirector of Multicultural Affairs, Michael ChambersDirector of Retention, Albert ColomDirector of Student Financial Aid, Carol PfeilstickerDirector of Students with Disabilities, Miriam Firpo-JemenezDirector of Testing and Evaluation, Lola KerlinDirector of Today and Beyond Wellness Program,

Rosemary DunbarDirector of University Center, James RawskiDirector of University Police, August Washington

VICE PRESIDENT FOR UNIVERSITYADVANCEMENT AND EXECUTIVE DIRECTOR,FAU FOUNDATIONCarla ColemanChair, FAU Foundation, Inc., Brian UtleyPresident, FAU Alumni Association, Harry MertzAssociate Vice President for Development, David LoweAssociate Vice President, Media and Information, Lynn LaurentiAssociate Vice President, University Advancement, Susan PeirceAssistant Vice President, University Relations and Alumni Affairs,

Elfriede LynchDirector of Alumni Affairs, Patricia BremanDirector of Annual Giving, Keith FriesDirector of External Relations, Katie StephensDirector of Governmental Relations, David MannDirector of Marketing/Advertising, Jim KimmelmanDirector of Publications, Terri TerrafermaController, University Foundation, Diane Freaney

UNIVERSITY ARCHITECTAND VICE PRESIDENTRobert FriedmanAssociate Vice President, Tom DonaudyDirector of Environmental Health and Safety, Wayne LandowskiDirector of Facilities Planning, Ray NelsonDirector of Physical Plant, Hal SchaefferDirector of Space Utilization and Analysis, John SingerSpecial Assistant to the Vice President, Patty Singer

FLORIDA BOARD OF REGENTS - 1998-99

Adam W. Herbert, Chancellor TallahasseeDennis M. Ross, Chairman SeminoleGwendolyn F. McLin, Vice Chair OkahumpkaAudrea I. Anderson Fort MyersJulian Bennett, Jr. Panama CityFrank T. Brogan, Commissioner of Education TallahasseeCharlton B. Daniel, Jr. GainesvilleJames F. Heekin, Jr. OrlandoAdolfo Henriques MiamiPhillip D. Lewis Riviera BeachElizabeth G. Lindsay SarasotaJon C. Moyle West Palm BeachSteven J. Uhlfelder TallahasseeWelcom H. Watson Fort LauderdaleMichelle C. Oyola, Student Regent Boca Raton

5

southeast coast, serving one of the fastestgrowing regions in the nation.

FAU offers undergraduate degree programs in65 fields of study and master’s degree programsin 59 disciplines. The University confers 16doctoral degrees in areas including publicadministration, comparative studies, businessadministration, curriculum and instruction,educational leadership, exceptional studenteducation, computer engineering, computerscience, electrical engineering, mechanicalengineering, ocean engineering, psychology,c o m p l e x s y s t e m s a n d b r a i n s c i e n c e s,mathematical sciences, physics and psychology.

Encouraging scholarship and research at thehighest levels, FAU has 16 fully funded EminentS c h o l a r C h a i r s i n c o m p l e x s y s t e m s,international business, marine biology, socialscience, brain science, Turkish studies, growthmanagement and development, philosophy,Judaic studies, nursing, Holocaust studies,engineering, performing arts, humanities,community education and the fine arts.

The University’s research community worksclosely with industry and local, state and federalgovernments on projects such as jet engine faultdetection, bridge load and stability testing, hightemperature super conductor development,electromagnetic testing, design of autonomousunderwater vehicles and implementation ofe lementary and communi ty educat ionprograms. The Florida Atlantic Research andDevelopment Park on the Boca Raton campusprovides strategic links between Universityresearch and commercialization efforts.

Other areas of specialized pursuits can be foundin the FAU/FIU Joint Center for Environmentaland Urban Problems, the Florida-Israel Institute,the Stuart-James Research Center, the GeographicInformation Systems Laboratory and the Centerfor Electronic Communication. FAU’s Depart-ment of Ocean Engineering, the first programof its kind and one of the Programs of Distinctionwithin the State University System, hasimportant partnerships in development with theU.S. Navy at the SeaTech campus.

A dis t r ibuted comprehens ive researchuniversity, Florida Atlantic University provides adynamic learning environment and a center forscholarly inquiry that strives to create the modelfor universities in the 21st century.

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OVERVIEW OF THE UNIVERSITYFlorida Atlantic University, a member of the StateUniversity System of Florida, was established in 1961and opened its doors to students in 1964. Thenation’s first successful upper division and graduateuniversity, FAU expanded to include lower divisionstudies in 1984, when a charter freshman class ofhighly qualified students was admitted.

The University ranks as one of the fastest growingunivers i t ies in the nat ion, near ly doubl ingenrollment over the last decade. In 1998-99, morethan 19,000 undergraduate and graduate studentswere enrolled at FAU.

A learning center for all ages, FAU is home to theKaren Slattery Child Development Center and thehighly rated A.D. Henderson University School.Three of the University’s campuses share locationswith Florida’s community college system to providesmooth transitions for degree-seeking students.

The Lifelong Learning Society, a unique program formature learners, boasts more than 17,000 members

who pursue intellectual stimulation, personal growthand cultural fellowship through a broad array ofspecially designed course work. The Division ofOpen University and Continuing Education providescourses, workshops and seminars to tens ofthousands of students each year through traditionaland on-line settings.

The University is organized into nine colleges –Architecture, Urban and Public Affairs, the DorothyF. Schmidt College of Arts and Letters, Business,Education, Engineering, Liberal Arts, Nursing, theCharles E. Schmidt College of Science and thebrand-new Honors College, which will welcome itsinaugural class in Fall 1999.

In addition to the original 850-acre campus in BocaRaton, FAU campuses are located in BrowardCounty at Fort Lauderdale, Davie and Dania Beach,in northern Palm Beach County in Jupiter and in St.Lucie County in Port St. Lucie. The University’sseven campuses span a 150-mile stretch on Florida’s

Faculty – Excellence in Academia and ResearchFAU faculty received nearly $25 million in publicand private grants to support research efforts. Almost$15 million came from federal funding sources.

Dr. Y.K. “Mike” Lin, the Charles E. SchmidtEminent Scholar Chair in Engineering, received the1998 Theodore von Karman Medal awarded by theAmerican Society of Engineers.

The John M. DeGrove Eminent Scholar Chair inG r o w t h M a n a g e m e n t w a s e s t a b l i s h e d b yan anonymous donor to honor Dr. DeGrove,a nat ional ly recognized expert in the f ie ld.Dr. DeGrove, a founding faculty member at theUniversity, was named the Chair’s first occupant.

Two faculty members from the Dorothy F. SchmidtCollege of Arts and Letters were awarded FulbrightScholarships. Dr. Mary Ann Gosser-Esquilin and

Dr. Harry Kersey received the prestigious honor,bringing to five the number of FAU faculty to beawarded Fulbrights in the last five years.

Dr. J.A. Scott Kelso, director of FAU’s Center forComplex Systems and Brain Sciences, receivednearly $2 million in federal research funding,including grants from the National Institute ofMental Health and the National Science Foundation.

Dr. Alan Berger, FAU’s Raddock Eminent Scholar forHolocaust Studies, served as coordinator and host ofthe 1998 “Lessons and Legacies of the Holocaust”conference, which at t rac ted internat iona lparticipation.

The Davimos Family Eminent Scholar Chair inBrain Sciences was established by Richard andMarilyn Davimos to augment the work being carried

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out in the Charles E. Schmidt College of Science’sCenter for Complex Systems and Brain Sciences.

Students – Milestones and Activities

FAU welcomed a record-setting freshman class of 1,520first-time-in-college students, topping the previous year’srecord enrollment by more than 10 percent.

FAU senior Michelle Oyola was appointed by thegovernor to represent public university studentsstatewide on the Florida Board of Regents as a full,voting member of the 14-member Board.

FAU’s two-woman team representing the Department ofOcean Engineering scored a second-place finish – the bestfinish ever for an all-woman team – in the 1998 WorldHuman-Powered Submarine Invitational in LaJolla,California.

Architecture students hosted FORUM 98, the annualmeeting of the American Institute of Architecture Students.

Comedian Bill Cosby was the headline act at FAU’s OwlProwl Homecoming celebration in February.

A Burgeoning EnvironmentFAU and Indian River CommunityCollege announced a plan to builda $22 million joint-use building inPort St. Lucie. The plan links theschools’ campuses in the St. LucieWest development with 100,000square feet of classroom, laboratoryand student services space.

SeaTech, FAU’s $13 million state-of-the-art researchcenter on Dania Beach, opened to serve students andfaculty in the University’s nationally recognized oceanengineering program.

Former Massachusetts governor and Democraticpresidential nominee Michael Dukakis visited FAU forthe dedication of the Barry and Florence FriedbergLifelong Learning Center, a $1.5 million facility speciallydesigned to meet the needs of older learners.

The Physical Sciences Building, a$14.5 million facility on the BocaRaton campus, opened to providenew classrooms, laboratories andoffices for the Charles E. SchmidtCollege of Science.

The $13.3 million Education andScience Building opened on theDavie campus to house programsoffered by the College of Liberal Arts and the Collegeof Education.

1998-99 HIGHLIGHTS

The Donnell-Kay Foundation and the State ofFlorida Internal Improvement Trust Fund deeded107 acres of land, valued at $3.48 million, to FAU’sPine Jog Environmental Education Center in WestPalm Beach.

Manuel Diaz Farms of Homestead donated anadditional 1,300 trees to landscape the Boca Ratoncampus.

New AffiliationsFAU signed an academic partnership with HebrewCollege of Brookline, Massachusetts, to enhance theJudaic Studies program and promote student andfaculty exchanges.

FAU’s Open University and Continuing Educationwon a $250,000 contract to provide training andevaluation services for Florida’s WAGES (Work andGain Economic Self-Sufficiency) Board and itspartners. WAGES is the state agency responsible formoving welfare recipients into the workforce.

RecognitionThe University was named for the third consecutiveyear as one of “America’s 100 Best College Buys” by

the Student Guide Series andwas included for the 10th yearamong the nation’s top largecomprehensive universities inU.S. News & World Report’sannual rankings.

FAU was one of 140 majorresearch universities to becomea char t e r member o f the

Internet2 project and received a $350,000 two-yeargrant from the National Science Foundation tosupport the program.

FAU ranks among the nation’s top 100 colleges anduniversities serving Hispanics, according to HispanicOutlook in Higher Education. Specially cited wereprograms in education, business and engineering.

FAU became the 12th university to be named aUniversity of Promise by America’s Promise–Alliancefor Youth, headed by General Colin Powell.

FAU’s School of Accounting earned specialrecognition from the Florida Institute of CertifiedPublic Accountants for long-standing excellence inaccounting education.

FAU’s Broward Student Government and the group’sadvisor, Elizabeth Page, were awarded high honors bythe National Association for Campus Activities.Broward Student Government earned the StudentGovernment of the Year Award and Ms. Page receivedthe Frank Harris Outstanding Student Advisor Award.Florida Leader magazine named FAU’s overall StudentGovernment best in the state.

AthleticsFAU’s football program, headedby Coach Howard Schnellenberger,was approved by the FloridaBoard of Regents. The team willtake to the field for their firstgame in fall 2001.

Olympic gold medalist BobBeamon and former NBAstandout Sidney Green joinedFAU’s coaching staff. Beamonwill establish a track and fieldprogram for the University andGreen took the helm of themen’s basketball program.

The women’s softball team wonits second consecutive TransAmerica Athletic Conference(TAAC) championship. StarterNikki Myers was named thetournament’s Most ValuablePlayer.

The women’s volleyball teamearned the University its thirdconference title by winning theTAAC championship. FAU’sbaseball team tied a 22-year-oldNCAA record by scoring 34consecutive single season wins.The team’s regular season record was 51-5.

FAU’s cheerleading squad captured a Division Ichampionship in the National CheerleadingAssociation’s annual competition. The University’sdance team took 12th-place honors.

FAU starter Gary Durrant won the nationallytelevised Slam Dunk competition by leaping overboth the Charlotte Hornets mascot and sportsannouncer Dick Vitale to score his winning basket.

DEGREES AWARDED BY COLLEGE1996-97 through 1998-99

Bachelor’s Master’s Doctoral

College 96-97 97-98 98-99 96-97 97-98 98-99 96-97 97-98 98-99Architecture, Urban

& Public Affairs 210 267 274 45 64 58 2 4 6Arts & Letters 411 493 482 55 51 48 0 0 0Business 782 814 875 153 189 184 5 4 3Education 507 514 478 210 253 265 17 20 36Engineering 168 150 149 93 112 99 20 15 9Liberal Arts 132 165 210 0 0 2 0 0 0Nursing 91 116 120 47 39 30 0 0 0Science 327 371 370 40 70 47 7 5 7

Total 2,628 2,890 2,958 643 778 733 51 48 61

Source: FAU Fact Book

HEADCOUNT ENROLLMENT BY COLLEGEFall Terms 1996 through 1998

1996 1997 1998Architecture, Urban

& Public Affairs 1,159 1,199 1,185Arts & Letters 3,394 3,669 3,787Business 4,810 5,067 5,186Education 4,090 3,962 3,933Engineering 1,561 1,647 1,641Liberal Arts 641 881 799Nursing 660 622 745Science 2,504 2,530 2,390

Total 18,819 19,577 19,666

Source: FAU Fact Book

1998-99 HIGHLIGHTS continued

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UNIVERSITY PROFILE

STATE-FUNDED FULL-TIME FACULTY9 and 12 Month, Fall Term

Tenured Faculty Non-Tenured Faculty

1996 1997 1998 1996 1997 1998Professors 211 218 248 25 22 11Associate Professors 140 149 154 30 29 24Assistant Professors 7 9 6 155 173 186Instructors 0 0 0 51 48 49Lecturers 0 0 0 10 6 6Other Faculty 0 0 0 77 88 87

Total 358 376 408 348 366 363

Source: Office of Institutional Effectiveness and Analysis

CONTRACTS & GRANTS AWARDS1996-97 through 1998-99

Funding Source 1996-97 1997-98 1998-99Federal $ 14,355,730 $ 14,517,603 $ 20,082,303State $ 2,925,573 $ 1,558,067 $ 1,279,391Private $ 5,397,569 $ 8,486,371 $ 9,803,657Other $ 2,537,569 $ 182,075 $ 0

Total $25,216,441 $24,744,116 $31,165,351

Source: FAU Fact Book

PERSONNELFall Terms 1996 through 1998

Full-Time Part-Time

1996 1997 1998 1996 1997 1998Faculty 706 660 742 6 9 8Adjuncts 37 98 32 420 476 482A&P 272 293 354 6 5 3Staff 672 805 750 418 357 265

Total 1,687 1,856 1,878 850 847 758

Source: FAU Fact Book

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Educational and General

FUNDING SOURCES

Tuition and Fees $ 37,757,356State Appropriations $ 108,503,359Gifts, Grants & Contracts $ 70,002,571Auxiliary Enterprises $ 18,920,008Other Sources $ 3,870,348

Total Revenue $ 239,053,642

Educational and General

FUNDING USES

Instruction $ 87,420,795Research $ 17,069,276Public Services $ 1,711,084Academic Support $ 24,292,274Student Services $ 14,319,694Institutional Support $ 18,070,373Plant Operations & Maintenance $ 11,884,275Scholarships/Fellowships $ 42,402,371Auxiliary Enterprises $ 17,663,294

Total Expenditures $ 234,833,436

UNIVERSITY PROFILE

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0

Other Sources

Auxiliary Enterprises

Gifts, Grants & Contracts

State Appropriations

Tuition & Fees

$90,000,000

$80,000,000

$70,000,000

$60,000,000

$50,000,000

$40,000,000

$30,000,000

$20,000,000

$10,000,000

$0

Auxiliary Enterprises

Scholarships/Fellowships

Plant Operation & Maintenance

Institutional Support

Student Services

Academic Support

Public Services

Research

Instruction

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Total University Funds Component Combined TotalsCurrent Loan Fund Plant Fund Agency Fund (Memorandum Only) Units (Memorandum Only)

Assets: Unrestricted Restricted Total Unexpended Renewal and Retirement Investment 1999 1998 1999 1998Replacement of Indebtedness in Plant

Cash (Note 1) $ 111,015 $ 110,453 $ 221,468 $ 46,000 $ – $ – $ 645 $ – $ 984 $ 269,097 $ 438,972 $ 3,629,888 $ 3,898,985 $ 2,283,153Investments (Note 2) 20,241,319 4,750,180 24,991,499 1,667,903 2,226,250 1,611,204 2,548,518 – 1,593,334 34,638,708 31,044,264 77,222,691 111,861,399 91,345,780Net receivables (Note 3) 1,643,558 68,687 1,712,245 2,804,935 32,348,027 1,120 2,779 – 409,654 37,278,760 47,628,599 459,553 37,738,313 48,288,687Inventories (Note 4) 12,682 2,811 15,493 – – – – – – 15,493 122,327 – 15,493 122,327Due from other funds 665,312 368,787 1,034,099 – – – – – – 1,034,099 1,168,900 12,521 1,046,620 1,168,900Due from other agencies or SUS universities/BOR 13,482,832 – 13,482,832 – 10,940,959 – – – – 24,423,791 16,477,642 388,673 24,812,464 16,842,758Grants and contracts receivable – 7,251,961 7,251,961 – – – – – – 7,251,961 4,823,650 – 7,251,961 4,823,650Other current assets – – – – 11,348 – – 33,050 – 44,398 38,292 91,601 135,999 129,958Land – – – – – – – 9,303,803 – 9,303,803 9,303,540 1,225,920 10,529,723 10,529,460Buildings and improvements – – – – – – – 222,588,185 – 222,588,185 185,831,754 115,921 222,704,106 185,952,491Equipment – – – – – – – 60,974,915 – 60,974,915 54,390,752 4,190 60,979,105 54,408,283Library resources – – – – – – – 42,398,542 – 42,398,542 38,802,799 – 42,398,542 38,802,799Construction in progress – – – – – – – 2,302,866 – 2,302,866 12,913,283 – 2,302,866 12,913,283Other fixed assets – – – – – – – 1,739,690 – 1,739,690 2,176,851 418,422 2,158,112 2,486,006

Total assets $ 36,156,718 $ 12,552,879 $ 48,709,597 $ 4,518,838 $ 45,526,584 $ 1,612,324 $ 2,551,942 $ 339,341,051 $ 2,003,972 $ 444,264,308 $ 405,161,625 $ 83,569,380 $ 527,833,688 $ 470,097,535

Liabilities:

Accounts payable and accrued expenses $ 1,860,921 $ 448,749 $ 2,309,670 $ 10,070 $ 1,780,536 $ – $ – $ – $ 1,924,028 $ 6,024,304 $ 6,729,195 $ 307,176 $ 6,331,480 $ 6,951,501Due to other funds 701,044 276,651 977,695 – – – – – 56,404 1,034,099 1,168,900 12,521 1,046,620 1,168,900Due to other agencies or SUS universities/BOR – – – – – – – – 23,540 23,540 22,497 301,483 325,023 284,572Deferred revenues 4,581,212 – 4,581,212 – – – – – – 4,581,212 4,327,947 140,681 4,721,893 4,327,947Liability for compensated absences (Note 6) 12,001,082 – 12,001,082 – – – – – – 12,001,082 11,158,787 – 12,001,082 11,158,787Long–term debt (Note 5) – – – – 4,889,729 – – 25,266,943 – 30,156,672 28,371,449 – 30,156,672 28,371,449

Total liabilities $ 19,144,259 $ 725,400 $ 19,869,659 $ 10,070 $ 6,670,265 $ – $ – $ 25,266,943 $ 2,003,972 $ 53,820,909 $ 51,778,775 $ 761,861 $ 54,582,770 $ 52,263,156

Fund balances:

Reserve for encumbrances $ 5,981,552 $ 3,770,171 $ 9,751,723 $ – $ 9,949,066 $ – $ – $ – $ – $ 19,700,789 $ 33,213,711 $ – $ 19,700,789 $ 33,213,711Refundable government grants – – – 1,251,635 – – – – – 1,251,635 1,262,203 – 1,251,635 1,262,203Unrestricted fund balance 11,331,232 – 11,331,232 – – – – – – 11,331,232 6,013,347 82,807,519 94,138,751 70,464,876Restricted fund balance 11,700,757 8,057,308 19,758,065 3,257,133 28,907,253 1,612,324 2,551,942 – – 56,086,717 48,029,159 – 56,086,717 48,029,159Investment in plant – – – – – – – 314,074,108 – 314,074,108 276,023,218 – 314,074,108 276,023,218Amount expected to be financed in future years (12,001,082) – (12,001,082) – – – – – – (12,001,082) (11,158,788) – (12,001,082) (11,158,788)

Total fund balances $ 17,012,459 $ 11,827,479 $ 28,839,938 $ 4,508,768 $ 38,856,319 $ 1,612,324 $ 2,551,942 $ 314,074,108 $ – $ 390,443,399 $ 353,382,850 $ 82,807,519 $ 473,250,918 $ 417,834,379

Total liabilities and fund balances $ 36,156,718 $ 12,552,879 $ 48,709,597 $ 4,518,838 $ 45,526,584 $ 1,612,324 $ 2,551,942 $ 339,341,051 $ 2,003,972 $ 444,264,308 $ 405,161,625 $ 83,569,380 $ 527,833,688 $ 470,097,535

The accompanying summary of significant accounting policies and notes are an integral part of the Financial Statements.

Combined Balance SheetAs of June 30, 1999 with Comparative Totals for 1998

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Total University Funds Component Combined TotalsCurrent Loan Fund Plant Fund (Memorandum Only) Units (Memorandum Only)

Revenue and other additions: Unrestricted Restricted Total Unexpended Renewal and Retirement Investment 1999 1998 1999 1998Replacement of Indebtedness in Plant

Educational and general $ 149,261,250 $ – $ 149,261,250 $ – $ – $ – $ – $ – $ 149,261,250 $ 130,921,530 $ – $ 149,261,250 $ 130,921,530Auxiliary enterprises 18,920,008 – 18,920,008 – – – – – 18,920,008 19,529,669 – 18,920,008 19,529,669Grants, contracts and gifts:

Federal – 23,711,962 23,711,962 17,682 – – – – 23,729,644 19,380,767 – 23,729,644 19,380,767State – 8,001,719 8,001,719 – – – – – 8,001,719 9,939,193 – 8,001,719 9,939,193Private – 38,625,704 38,625,704 – 759,451 – – – 39,385,155 33,036,806 – 39,385,155 33,036,806

Investment income-restricted (Note 2) – 422,345 422,345 119,821 29,269 35,543 154,776 – 761,754 383,254 – 761,754 383,254Interest on loans receivable – – – 68,259 – – – – 68,259 64,341 – 68,259 64,341Resources received from BOR 3,853,030 – – – – – – – – – – – –State appropriations-restricted – – – – 17,574,846 – – – 17,574,846 16,082,794 – 17,574,846 16,082,794Expended for plant facilities – – – – – – – 37,115,272 37,115,272 36,280,813 – 37,115,272 36,280,813Retirement of indebtedness – – – – – – – 956,047 956,047 915,177 – 956,047 915,177Other revenue and additions – 459,411 459,411 75,280 2,055,696 – – – 2,590,387 2,520,576 – 2,590,387 2,520,576Component unit revenue:

Grants and donations – – – – – – – – – – 12,372,754 12,372,754 8,491,711Interest and dividends – – – – – – – – – – 9,721,257 9,721,257 5,166,132Other component unit revenues – – – – – – – – – – 4,480,939 4,480,939 6,564,091

Total revenues and other additions $ 172,034,288 $ 71,221,141 $ 239,402,399 $ 281,042 $ 20,419,262 $ 35,543 $ 154,776 $ 38,071,319 $ 298,364,341 $ 269,054,920 $ 26,574,950 $ 324,939,291 $ 289,276,854

Expenditures and other deductions: Educational and general expenditures $ 146,297,758 $ 70,872,385 $ 217,170,143 $ – $ – $ – $ – $ – $ 217,170,143 $ 194,897,383 $ – $ 217,170,143 $ 194,897,383Auxiliary enterprises expenditures 16,321,873 – 16,321,873 – – – – – 16,321,873 16,618,060 – 16,321,873 16,618,060Loan cancellations and write-offs – – – – – – – – – 148,433 – – 148,433Administrative and collection cost – – – – – – 3,012 – 3,012 31,229 – 3,012 31,229Expended for plant facilities – – – – 30,281,250 – – – 30,281,250 28,881,566 – 30,281,250 28,881,566Retirement of indebtedness – – – – – – 510,000 – 510,000 485,000 – 510,000 485,000Interest on indebtedness – – – – – – 834,282 – 834,282 854,632 – 834,282 854,632Other expenditures and deductions – – – – 15,834 – – 20,429 36,263 579,106 8,218,960 8,255,223 6,810,152

Total expenditures and other deductions $ 162,619,631 $ 70,872,385 $ 233,492,016 $ – $ 30,297,084 $ – $ 1,347,294 $ 20,429 $ 265,156,823 $ 242,495,409 $ 8,218,960 $ 273,375,783 $ 248,726,455

Transfers among funds – additions/(deductions):

Mandatory:Debt service $ (1,341,421) $ – $ (1,341,421) $ – $ – $ – $ 1,341,421 $ – $ – $ – $ – $ – $ –

Non-mandatory:Interfund transfers (2,188,490) 2,255,796 67,306 (67,306) – – – – – – – –

Total transfers among funds $ (3,529,911) $ 2,255,796 $ (1,274,115) $ – $ (67,306) $ – $ 1,341,421 $ – $ – $ – $ – $ – $ –

Net increase/(decrease) in fund balance 5,884,746 2,604,552 4,636,268 281,042 (9,945,128) 35,543 148,903 38,050,890 33,207,518 26,559,511 18,355,990 51,563,508 40,550,399

Fund balance at the beginning of the year 11,127,713 9,222,926 20,350,639 4,227,726 48,801,448 1,576,781 2,403,039 276,023,218 353,382,851 326,823,340 64,451,529 417,834,380 377,283,981

Fund balance at the end of the year $ 17,012,459 $ 11,827,478 $ 24,986,907 $ 4,508,768 $ 38,856,320 $ 1,612,234 $ 2,551,942 $314,074,108 $ 386,590,369 $ 353,382,851 $ 82,807,519 $ 469,397,888 $ 417,834,380

The accompanying summary of significant accounting policies and notes are an integral part of the Financial Statements.

Combined Statementof Changes in Fund BalancesFor the Year Ended June 30, 1999 with Comparative Totals for 1998

A. Reporting EntityAlthough the University is considered a separate entityfor financial reporting purposes, it is a part of the StateUniversity System and accordingly is governed,regulated and coordinated by the Department ofEducation, Board of Regents, subject to the generalsupervision of the State Board of Education. ThePresident is responsible for the management of theUniversity and is under the general direction andcontrol of the Chancellor of the State UniversitySys tem who has u l t imate respons ib i l i t y fo radministering the policies prescribed by the Board ofRegents.

Although one of the primary obligations of reporting isto account for resources received and used, there areinstances in which University resources are accountedfor and reported by other entities. For example, PlantFund activity within the SUS General Revenue Fund isaccounted for and reported by the Board of Regents.When the construction projects within this fundbecome substantially complete, they are included in theUniversity’s Investment in Plant Fund.

The financial operations and financial positions of theUniversity’s “direct support organizations,” as providedfor in Section 240.299, Florida Statutes and Board ofRegents Rule 6C-9.011, are considered componentunits of the University and are included by discretepresentation in the financial statements of theUniversity in a format prescribed by the Board ofRegents. These are separate, not-for-profit corporationsorganized and operated exclusively to assist theUniversity to achieve excellence through educationalsupport services by providing supplemental resourcesfrom private gifts and bequests. These organizations areauthorized to receive, hold, invest and administerproperty and to make expenditures to or for the benefitof the University. An annual post audit of eachorganization’s financial statements is conducted by anindependent certified public accountant. The annualreports are submitted to the Auditor General and theBoard of Regents for review and are available uponrequest. These organizations are as follows:

Florida Atlantic University Foundation, Inc.The University’s fund-raising and private supportprograms are accounted for and reported separately bythe Florida Atlantic University Foundation, Inc.Foundation revenues include unrestricted andrestricted gifts and grants and investment income.

Foundation expenditures include scholarshipdistributions to students, departmental faculty and staffdevelopment support and administrative costs of theFoundation’s development program.

Florida Atlantic University ResearchCorporation, Inc.The Florida Atlantic University Research Corporation,Inc. is a not-for-profit corporation and a Universitydirect support organization established by FloridaAtlantic University in 1990. The corporation has beenorganized for the purpose of promoting, encouragingand providing assistance to the research activities of theUniversity’s faculty, staff and students. The corporationhas been granted rights and responsibilities for thedevelopment, protection and commercial application ofdefined and selected intellectual property. Thecorporation also accepts and administers contracts andgrants from private industry, foundations and otheragencies whenever it is required by the granting agency,or when it is in the best interest of the University.

B. Basis of AccountingThe financial statements were prepared in accordancewith generally accepted accounting principles andinstructions provided by the Board of Regents pursuantto recommendations made by the National Associationof College and University Business Officers, aspublished under the title of “College and UniversityBusiness Administration.”

The accrual basis of accounting was used to preparethe financial statements; however, depreciation of fixeda s s e t s i s n o t r e c o g n i z e d . Th e R e s e r v e f o rEncumbrances portion of the Fund Balance is arepresentation of purchase commitments for whichmerchandise or services had not been received as of theend of the fiscal year. Notes and accounts receivable arereported at face va lue, less an al lowance foruncollectible accounts.

Physical plant and equipment are recorded at cost atthe date of acquisition or at appraised value at the datereceived. Likewise, improvements to existing propertyand apartments are recorded at cost at the time ofcompletion.

Interdepartmental transactions of auxiliary servicedepartments and other institutional departments havebeen accounted for as reductions of expenditures andnot revenues of the auxiliary service departments.

Revenues: Combined Totals ‘98Unrestricted Restricted Total (Memorandum Only)

Educational and general:Student tuition and fees $ 37,757,356 $ – $ 37,757,356 $ 32,509,891State appropriations 108,503,359 – 108,503,359 97,882,972Grants, contracts and gifts:

Federal – 23,598,419 23,598,419 19,580,816State – 7,963,403 7,963,403 10,052,998Private – 38,440,749 38,440,749 33,410,123

Sales and services of educational activities 332,396 – 332,396 324,842Other sources:

Investment income 90,186 – 90,186 98,437Other 2,577,953 869,813 3,447,766 1,594,500

Total educational and general revenues $ 149,261,250 $ 70,872,384 $ 220,133,634 $ 195,454,579

Auxiliary enterprises:Sales and services from operations $ 5,634,525 $ – $ 5,634,525 $ 4,770,502Student fees 12,406,063 – 12,406,063 13,886,024Investment income 879,420 – 879,420 873,143

Total auxiliary revenue $ 18,920,008 $ – $ 18,920,008 $ 19,529,669

Total current revenues $ 168,181,258 $ 70,872,384 $ 239,053,642 $ 214,984,248

Expenditures:Educational and general:

Instruction $ 78,877,741 $ 8,543,054 $ 87,420,795 $ 80,350,740Research 1,963,348 15,105,928 17,069,276 13,366,351Public services 1,600,741 110,343 1,711,084 1,637,143Academic support 22,051,159 2,241,115 24,292,274 21,259,539Student services 11,465,826 2,853,868 14,319,694 11,039,369Institutional support 15,936,595 2,133,778 18,070,373 17,444,831Operation and maintenance of plant 11,512,663 371,612 11,884,275 10,111,300Scholarships and fellowships 2,889,685 39,512,686 42,402,371 39,688,110

Total educational and general expenditures $ 146,297,758 $ 70,872,384 $ 217,170,142 $ 194,897,383

Auxiliary enterprises:Expenditures $ 16,321,873 $ – $ 16,321,873 $ 16,618,060

Mandatory transfers for principal and interest 1,341,421 – 1,341,421 143,030

Total auxiliary enterprises $ 17,663,294 $ – $ 17,663,294 $ 16,761,090

Total expenditures and mandatory transfers $ 163,961,052 $ 70,872,384 $ 234,833,436 $ 211,658,473

Other transfers and additions/(deductions):Excess of restricted receipts

over transfers to revenue $ – $ 348,755 $ 348,755 $ (595,028)Interfund transfers (2,188,490) 2,255,796 67,306 (2,410,418)Resources received from BOR 3,853,030 _ 3,853,030Resources remitted to BOR – – (13,199)

Total other transfers and additions/(deductions) $ 1,664,540 $ 2,604,551 $ 4,269,091 $ (3,018,645)

Net increase/(decrease) in fund balance $ 5,884,746 $ 2,604,551 $ 8,489,297 $ 307,130

COMBINED STATEMENT OF CURRENT FUNDSREVENUES, EXPENDITURES AND OTHER CHANGES

The accompanying summary of significant accounting policies and notes are an integral part of the Financial Statements.

For the Year Ended June 30, 1999with Comparative Totals for 1998

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the Year Ended June 30, 1999

18 19

To the extent that current funds are used to financeplant assets, the amounts so provided are accounted foras: (1) expenditures, in the case of normal replacementof movable equipment and library books; (2) mandatorytransfers, in the case of required provisions for debtamortization and interest and equipment renewal andreplacement; and (3) as transfers of a non-mandatorynature for all other cases.

The S ta t ement o f Cur ren t Funds Revenues,Expenditures and Other Changes is a statement offinancial activities of current funds related to the currentreporting period. It does not purport to present theresults of operations or the net income or loss for theperiod as would a Statement of Income or a Statementof Revenues and Expenses.

C. Fund AccountingTo ensure observance of limitations and restrictionsplaced on the use of the resources available to theUniversity, the financial records and accounts aremaintained in accordance with the principles of “fundaccounting.” This is the procedure by which resourcesfor various purposes are classified, for accounting andreporting purposes, into funds that are in accordancewith activities or objectives specified. Separate accountsare maintained for each fund; however, in theaccompanying financial statements, funds that havesimilar characteristics have been combined into fundgroups.

Accordingly, all financial transactions have beenrecorded and reported by one of the following fundgroups.

1. Current Funds – This fund includes those economicresources of the University that are expendable foroperational purposes in performing the primaryobjectives of the University (instruction, research andpublic service). Resources restricted by donors orother outside agencies for specific current operatingpurposes are reported as Restricted Current Funds.

2. Loan Funds – This fund group consists of loans tostudents and of resources available for suchpurposes. The terms of the loan agreements usuallyspecify that the fund is to be managed on a revolvingbasis; i.e., repayments of principal and interest arereturned to the fund and loaned to other eligiblestudents.

3. Plant Funds – Plant fund groups are used to accountfor the transactions relating to investment inUniversity property. Plant fund sub-groups and theirfunctions are:

(a) Unexpended Plant Funds account for theunexpended resources received directly bythe University, from various sources, tofinance the acquisition of long-lasting plantassets and associated liabilities.

(b) Renewal and Replacement Plant Fundsprovide for the renewal and replacement ofPlant Fund Assets as distinguished fromadditions and improvements to plant.

(c) Retirement of Indebtedness Funds are usedto account for the accumulation of resourcesreceived directly by the University forinterest and principal payments and otherdebt service charges including contributionsfor sinking funds relating to plant fundindebtedness.

(d) Investment in Plant includes all long-lastingassets in the service of the University, as wellas all associated liabilities.

4. Agency Funds – This fund group consists of fundsheld by the University as custodian or fiscal agent forothers, such as student organizations and groups.

5. Component Units – This fund group consists oforganizations for which the University is accountableor for which the nature and significance of theirrelationship with the University are such thatexclusion would cause the financial statements to bemisleading or incomplete.

In each fund group, fund balances restricted by outsidesources are so indicated and are distinguished fromunrestricted funds allocated to specific purposes.Externally restricted funds may be utilized only inaccordance with the purposes established by the donorsor grantors.

D. Other Significant Accounting PoliciesOther significant accounting policies are set forth in thefinancial statements and notes thereto.

1. CASH AND DEPOSITSAmounts reported as cash consisted of cash on hand and cash in demand accounts. Cash in demand accounts isheld in banks qualified as public depositories in accordance with the provisions of Chapter 280, Florida Statutes.

2. INVESTMENTSInvestments were made through the State Treasurer and the Board of Administration in accordance with theprovisions of Section 215.515 and 215.49, Florida Statutes. Investments consisted of the instruments listed inSection 18.10, Florida Statutes. The investments are recorded at cost; the differences between market value andthe cost of investments is negligible.

Investment earnings, including interest earned on funds left on deposit with banks, were $1,731,360 for the yearended June 30, 1999. Current unrestricted fund investment earnings include auxiliary enterprise investmentearnings. Investment earnings by fund consisted of the following items:

Year Ending June 30

Current Unrestricted Fund $969,606Current Restricted Fund 422,345Loan Fund 119,821Plant Fund 219,588Total $1,731,360

3. NET RECEIVABLESAccounts and loans receivable are reported net of allowance for uncollectible accounts, which as of June 30, 1999,was $843,957. The recorded net receivables as of that date consisted of the following items:

Total University Components CombinedCurrent Funds Loan Fund Plant Fund Agency Fund Funds Units Totals

Accounts Receivable $ 2,211,555 $ – $ – $ 488,295 $ 2,699,850 $ 457,557 $ 3,157,407

Interest Receivable 54,183 72,300 9,527 14,878 150,888 1,996 152,884

Loans Receivable – 2,929,580 – – 2,929,580 – 2,929,580

Due from otherUniversity Departments – – 32,342,399 – 32,342,399 – 32,342,399

Gross Receivables $ 2,265,738 $ 3,001,880 $ 32,351,926 $ 503,173 38,122,717 $ 459,553 $ 38,582,270

Allowance forUncollectible Accounts $ 553,493 196,945 – 93,519 843,957 – 843,957

Net Receivables $ 1,712,245 $ 2,804,935 $ 32,351,926 $ 409,654 $ 37,278,760 $ 459,553 $ 37,738,313

4. INVENTORIESMerchandise inventories of $15,493 reflected on the Balance Sheet consisted of goods purchased for resale.Inventories are valued according to the latest invoice price method.

NOTES TO THE FINANCIAL STATEMENTSFor the Year Ended June 30, 1999

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the Year Ended June 30, 1999

21

5. LONG-TERM DEBTThe University’s long-term indebtedness of $30,156,672, as reported in the Investment in Plant Fund, consistsof revenue certificates and bonds that were issued to construct certain University facilities, including parkingareas, student housing and academic and student service facilities. The bonds and revenue certificatesoutstanding are secured by a pledge of housing rental revenues, traffic and parking fees and various student feeassessments. The building fee and capital improvement fee collected as part of tuition and remitted to the Boardof Regents is used to retire the revenue certificates for the academic and student service facilities.

A summary of pertinent information related to the University’s indebtedness resulting from the issuance ofcertificates and bonds is as follows:

Amount of Interest Outstanding MaturityBond Series Title Original Issue Rate Principal Date

1964 Dormitory $ 992,000 3.50% $ 183,000 2004

1966A Dormitory 1,130,000 3.00% 315,000 2006

1966B Dormitory 1,070,000 3.00% 300,000 2008

1991 Academic and Student Services 6,743,141 5.80% to 6.70% 111,560 2016

1993 Student Apartments 17,180,000 5.80% 15,705,000 2021

1993 Academic and Student Services 6,118,142 4.50% to 5.375% 4,833,707 2013

1997 Academic and Student Services 652,031 5.0% to 7.0% 600,819 2022

1997A Academic and Student Services 5,601,098 5.0% to 7.0% 5,446,864 2022

1998 Academic and Student Services 2,761,595 4.0% to 5.0% 2,660,722 2023

Total $ 42,248,007 $ 30,156,672

Five-year maturities of these revenue certificates and bonds are:

Year Ending June 30 Principal Interest Total

2000 $ 997,564 $ 1,491,036 $ 2,488,600

2001 1,036,211 1,446,717 2,482,928

2002 1,071,955 1,400,567 2,472,522

2003 1,138,982 1,352,865 2,491,847

2004 1,173,589 1,301,355 2,474,944

Subsequent Years 24,942,632 11,475,558 36,418,190

Subtotal $ 30,360,933 18,468,098 $ 48,829,031

Less: Bond Discount 204,261 – 204,261

Total $ 30,156,672 $ 18,468,098 $ 48,624,770

6. COMPENSATED ABSENCES LIABILITYEmployees earn the right to be compensated during absences for annual leave (vacation) and sick leave pursuantto Section 6C-5.920, Florida Administrative Code; and pursuant to bargaining agreements between the Board ofRegents and the United Faculty of Florida. Leave earned is accrued to the credit of the employee and records arekept on each employee’s unpaid (unused) leave balance. Consistent with GASB Statement 16, the Universityaccrues a liability in the Current Fund for employees’ right to receive compensation for future absences whencertain conditions are met, although State appropriations fund only the portion of accrued leave that is used orpaid in the current fiscal year. Although the liability is expected to be funded primarily from future appropriations,generally accepted accounting principles do not permit the recording of a receivable in anticipation of futureappropriations. Consequently, the recording of the liability for compensated absences without the correspondingrecognition of such future resources results in the appearance of a reduced ability to meet current obligations.At June 30, 1999, the estimated liability for annual and sick leave was $6,258,248 and $5,742,834, respectively.The University’s Unrestricted Current Fund Balance at June 30 of $17,012,459 would have been $29,013,541had such liability for compensated absences not been applied against it.

7. OPERATING LEASESThe University has long-term commitments for assets leased under operating leases. These assets are not recordedon the balance sheet, and operating lease payments are recorded as expenditures or expenses of the related fundwhen paid or incurred. Future minimum lease commitments for non-cancelable leases as of June 30, 1999, wereas follows:

Year Ending Operating Lease June 30 Commitments2000 57,0002001 57,0002002 57,0002003 57,0002004 57,000Subsequent years 1,137,000Total $ 1,422,000

8. CONSTRUCTION COMMITMENTSThe major construction commitments of the University for projects where the estimated exceeds $1,000,000 as of June 30, 1999, are:

Total Estimated Amount Expended Amount UnspentProject Name Cost at Year End at Year End at Year End

Campus Recreation/Athletics $ 2,082,114 $ 2,075,483 $ 6,631Davie Classroom Bldg. II 14,383,638 13,700,446 683,192Student Activities Center – Boca 8,184,624 92 8,184,532Boca Campus Infrastructure 4,024,000 4,012,521 11,479Building Repairs – Building 10, T-13, BC4 3,419,500 2,411,339 1,008,161Land Acquisition – St. Lucie, SeaTech 8,334,900 8,076,444 258,456SeaTech Building – Renovation 7,643,985 6,984,258 659,727Humanities Remodeling – Building 9 10,552,629 1,530,045 9,022,584Lifelong Learning Center 1,562,674 1,413,154 149,520University Tower II 11,972,800 74,316 11,898,484Fieldhouse Renovation 1,933,000 1,928,165 4,835Physical Sciences Building 15,948,388 15,878,128 70,260Northern Palm Beach Campus 19,709,271 12,595,640 7,113,631Developmental Research School 4,226,904 2,895,674 1,331,230Fire Safety Corrections 1,005,671 1,003,234 2,437Joint Classroom Use 10,536,912 0 10,536,912Fort Lauderdale Student Activities 1,346,486 0 1,346,486Capital Renewal 2,370,000 71,046 2,298,954University Center Expansion 2,217,040 2,205,314 11,726Lifelong Learning Center Addition 1,000,000 55,696 944,304Davie Campus 15,428,121 15,381,017 47,104Beach Tax District Project 2,263,000 2,129,616 133,384Gumbo Limbo 1,400,000 1,378,557 21,443University Tower Land Acquisition 5,000,000 4,884,186 115,814Student Apartment Facility 14,976,530 14,894,761 81,769Master Plan Update 1,041,586 882,257 159,329Health Services Facility 4,827,644 51,472 4,776,172

Total $177,391,417 $116,512,861 $ 60,878,556

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9. STUDENT FEES AND OTHER COLLECTIONS(a) Student and Other Incidental Fees Trust Fund

Collections of student fees are remitted directly to the State Treasurer. Subsequently, these collections arereturned to the University by state appropriation. Pursuant to generally accepted accounting principles,the total of budgeted revenues has been offset against total state appropriations reported for the CurrentUnrestricted Funds.

(b) Capital Improvement Trust Fund and Building Fees

Capital Improvement and Building Fees are assessed and collected on behalf of the Board of Regents.Collections of these fees are as follows:

Capital Improvement Fee $994,784Building Fee 994,637Total $1,989,421

Tuition and fees totaling $3,747,542 were waived as permitted by Board of Regents rules.

10. CONTINGENT LIABILITIESThe University, in its normal operations, is a defendant in various legal actions. Management and legal counselare of the opinion that the outcome of these matters will not have a material adverse effect on the University’sfinancial position.

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FLORIDA ATLANTIC UNIVERSITYJay R. Semmel, CPA, CGFM

Controller

777 Glades Road • Post Office Box 3091 • Boca Raton, Florida 33431e-mail: semmel@fau.edu • www.fau.edu