FY 2015-2016 Q4 Results Board of Directors Finance & Investment Committee June 2017 and 4th Quarter Results Post-Audit September 15, 2017

FY 2016/2017 Fourth Quarter Financial Results – Post Audit Summary Results Audit Adjustments Key Activities Financial Summary/Operating Statements Actuals vs Budget Pro-Forma Year-Over-Year Comparison Investments Capital Expense Status Financial Statements Year-over-Year comparison Campus Contributions

Financial Summary June (Post-Audit) Q4 Operating results favorable to plan June Sales and Margins off Non Cash Actuarial Adjustments to Net Contribution Total Year Results: Sales - $36,636,428 Operating Income (Before G&A/Invest.) - $5,196,235 Net Contribution - $1,502,901 Skewed by Non-Cash Actuarial Adjustments $1,365,123 Pro-Forma Operating Contribution (See Pro-forma)

Audit Adjustments June (Post-Audit) Year-End Audit Downward Audit Adjustment $512K (non-Cash) PERS FY2015/2016 Contribution No Material Deficiencies Minor recommendations for improved control See Audit Report

FY 2016/2017 Audit Adjustments Non-Cash adjustments for various account true-ups.

FY 2016/2017 June/Q4 Key Activities $1,267,666 PERS Unfunded Liability Increase Actuarial per GASB 68 – 6/30/16 measurement date Total Unfunded Liability of $5,238,154 (6/30/17) $276,228 Payment made 7/31/17 Post Retirement Actuarial assessment Recorded Liability decrease of $626,522 (non-cash) Benefitted from VEBA investment gain Physical Inventory 1.1% shrinkage $42Kretail) write-down vs $142K reserve Incentive Comp Accrual - $380,000 PERS Invoice of $276,228 paid in July. Revised asset update to 6/30/16 per Pooled Misc Report - Inventory reserve at $142K Post Retirement net includes $500K contribution. Personnel Committed recommendation. Overall Benefit Obligation down to $8,141,503 from $8,203,225

FY2016/2017 Operating Statement June 2017 & Fourth Quarter Summary

Operating Statement Summary June 2017 Year-to-Date

FY2016/2017 Operating Statement June/YTD Detail (Post-Audit)

FY 2016/2017 Pro-Forma Operating Results Excludes day-to-day operational decisions including minor Board approved actions such as small donations

Year over Year Results Q4 Operating results trended similar to budget Strong Sales and Margins during quarter Net Contribution variance skewed by Non-Operational Activities Investment Up $214K from FY15/16 PERS/Retiree Medical favorable comparison of $450K Total Year Sales down .9% Bookstore & Residential Dining Dining had direct contribution impact Investment swing of $1.3M

June and 4th Quarter Year-to-Year Comparison

Operating Statement Summary Total Year-to-Year Comparison June Y-T-D

Total Year Expenditures below plan at $892,806 FY2016/2017 Capital Status Total Year Expenditures below plan at $892,806 $532,892 Amazon completion (Total $669,405) $48,647 USU EBT Project ($47K Budget) $133,706 Outpost Seating pre-order Additional items $51,101 of prior year carry over Unbudgeted $30K Starbucks Library Licensing fee Starbucks contract calls for 10 year license renewal $5,000 Papa Johns start-up fee (FY17/18 budget) Terminations/Deferrals Food Truck eliminated due to regulatory needs Outpost Patio deferred until FY17/18

Capital Expenditure Status FY 2016/2017 June YTD Amazon Locker Complete A/C Updates Small items per ongoing plan Simplex Pending Food Truck and Outpost Patio Pending

Investment Results June Investments up $20K 8 months of continues Market gains Total Year Investment gain of $1,009,041 Smith Barney up $997,582 (12.5%) SMIF up $11,459 (8.4%) VEBA holdings increased by $944,800 $500K Final contribution $444,800 (9.67%) investment gain Target (CPI+3%) – 4.6%

Smith Barney Portfolio FY 2016/2017 Performance Investment Portfolio up a cumulative $997,582 or 12.5% for the year 8 consecutive months of positive gains

Investment Portfolio History Volatile year but steady growth over time.

SMIF Wells Fargo Portfolio FY 2016/2017 Performance Investment Portfolio up a cumulative $11,459 or 8.4% for the year Second half growth after early downturn and re-investment

VEBA TRUST ACCOUNT BALANCE BENEFIT TRUST COMPANY AS TRUSTEE FOR CSU 49ERS SHOP Page 1 Statement Period Account Number 06/01/2017 through 06/30/2017 115150005100 Asset Summary As Of 06/30/2017 DESCRIPTION MARKET VALUE AVG COST % OF PORT MUTUAL FUND - FIXED INCOME 2 , 4 45 , 85 0 . 25 2 , 4 37 , 322 . 53 4 9 MUTUAL FUND - DOMESTIC EQUITY 1 , 3 32 , 27 3 . 76 1 , 1 84 , 792 . 78 2 7 MUTUAL FUND - INTERNATIONAL EQUITY 8 34 , 63 3 . 33 7 35 , 667 . 33 1 7 UTUAL FUND - REAL ESTATE 3 43 , 35 4 . 58 3 39 , 377 . 18 7 TOTAL INVESTMENTS 4 , 9 5 6 , 1 1 1 . 9 2 4 , 6 9 7 , 1 5 9 . 8 2 CASH 1 0 , 6 0 9 . 0 8 DUE FROM BROKER 0 . 0 0 DUE TO BROKER TOTAL MARKET VALUE Ending Asset Allocation 2 6. 9 % MUTUAL FUND - DOMESTIC EQUITY 1, 332 , 27 3. 76 4 9. 3 % MUTUAL FUND - FIXED INCOME 2, 445 , 85 0. 25 1 6. 9 % MUTUAL FUND - INTERNATIONAL EQUI 834 , 63 3. 33 6. 9 % MUTUAL FUND - REAL ESTATE 343 , 35 4. 58 10 0. 0 % Total 4, 956 , 11 1. 92

Cash/Investment Balance Trend (With VEBA-Off Balance Sheet)

Financial Statements Overview Investment Designation - June 2017 Cash/Investment balance $13,373,023 $2,412,528 increase over last year $500K Track Loan repayment $1,030,000 Investment income Rest from operations Major Cash Outlays $500,000K contribution to VEBA Trust $85,000 Bond Reduction $228,312 PERS Unfunded Liability payment $892,806 Capital

Investment Designation Report June 2017 $1M Investment Gain $2.3M Cash Increase for the year. Includes $500K Track Loan repayment

Financial Statements Overview Balance Sheet - June 2017 Assets up $1.7MK from last year Assets Cash/Investments up per Cash Designation report A/R Down $1M $500K is Athletic loan Veteran Sales Inventory and Fixed Assets same Long Term Liabilities Similar to last year PERS up $1.1M Post Retirement Medical Down $1M Update December Cash per Investment report – Up $2.3Mfrom last year - $500K Track reimbursement -Investment gain A/R down $1M – Track reimbursement plus $400K+ of Veteran Sales. Athletics loan now paid leaving total same. Inventory same Assets Same long term liability same but PERS up and others down due to OPEB actuarial

Balance Sheet – June 2017 Update December Cash per Investment report – Up $2.3Mfrom last year - $500K Track reimbursement -Investment gain A/R down $1M – Track reimbursement plus $400K+ of Veteran Sales. Athletics loan now paid leaving total same. Inventory same Assets Same long term liability same but PERS up and others down due to OPEB actuarial

Long Term Liabilities Trend Potential GASB 68 PERS Impact ongoing - 30 year pay down plan for unfunded liability

Financial Statements Overview Operating Cash Flow - June 2016 June was negative $802K Budget was negative $1,278K PERS & Post Retirement non-cash adjustments Total Year Cash Flow of $2.3M $500K Track Loan repayment $1M Investment income Rest from Operations

Cash Flow Statement June 2017

Campus Contribution Summary

Campus Contributions Donations & Partnership Detail

Campus Contributions Reimbursed Services & Capital Detail

Financial Reporting Formats Monthly Operating Statements designed to capture information at it’s lowest level to measure departmental results and allow for prudent business decisions Audited Financial Statement is presented in summary format and re-classify various accounts to conform with Campus roll-up. Tax Return Restates certain Sales & Expenditures and extracts specific elements to conform with IRS reporting requirements All GAAP compliant Monthly A/R & A/P credits off-set to manage cash and payments Interest Expense and costs allocated as appropriate to Divisions Credit & Revenues do not get G&A allocation G&A Allocated across Divisions to ensure overhead coverage Audited Statements presented in a classical summary statement format Reclassify A/R – A/P items especially with Campus since part of annual campus true-up. Credit & Revenues restated to Sales and COG Tax Return designed for taxable earning reporting. Although we’re a non-Profit another restatement