FY 2016 Annual Financial Report Operating Statement Highlights Financial Area Representatives Meeting January 25, 2017 Sheri Hardison, Asst. VP Financial Affairs & Controller Office of Financial Affairs (http://www.utsa.edu/financialaffairs/)

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 Financial Affairs Office of the Controller

Statement of Revenue, Expenses, and Changes in Net Position (SRECNP) ($ In Millions) Results of operations for the year Operating Loss does not include State Appropriations or Pell revenue GASB 72 Fair Value Measurement & Application required $280,348 restatement of Net Position Net Position decreased by $30.4M in FY 2016. Financial Affairs Office of the Controller

SRECNP – Operating Revenue ($ In Millions) Net tuition and fees decreased $7.2M $4M of decrease was from fewer Fall 2016 class days falling in the closed fiscal year than in FY2015 Higher paying non-resident student credit hours were 8,398 lower than the prior year Sponsored program revenue decreased due to decreases in state, local and privately-funded programs Financial Affairs Office of the Controller

SRECNP – Operating Expenses ($ In Millions) The largest research-related expense increases occurred in salaries and wages ($2.3M), Materials and Supplies ($1.0M) and Other Operating Expenses ($1.4M). Expenses included Gold Star faculty start-up expenditures that were planned and funded in prior years Scholarship expenses increased primarily due to: The FY2014 cash reconciliation adjustment ($6.5M) An increase in exemptions ($1.4M) Every year a calculated amount is reclassified to net against Tuition and Fee Revenue. For FY2016 this calculation was $6.8M lower than the prior year. Financial Affairs Office of the Controller

FY 2016 Sources of Operating Revenue by Category ($ In Millions) Financial Affairs Office of the Controller

FY 2016 Sources of Operating Revenue ($ In Millions) Financial Affairs Office of the Controller

FY 2016 Sources of Operating Revenue – 5 Year Trend Financial Affairs Office of the Controller

FY 2016 Operating Uses of Funds ($ In Millions) Financial Affairs Office of the Controller

FY 2016 Operating Uses of Funds – 5 Year Trend Financial Affairs Office of the Controller

Reconciliation of Research and Sponsored Program Expenditures to AFR Operating Expenses - Research ($ In Millions) Financial Affairs Office of the Controller

FY 2016 Analysis of Financial Condition - Composite Financial Index UTSA received a “Satisfactory” rating from UT System Annual Operating Margin decreased from 3.8% in FY2015 to (5.9%) in FY2016 Included one-time conversion related adjustments Decrease in non-resident semester credit hours Expenses increased 5.8% while revenues decreased 0.1% Expenses included some faculty start-up funding spent in FY2016 and other one-time expenses Financial Affairs Office of the Controller

QUESTIONS Financial Affairs Office of the Controller

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