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

2. 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

3. 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)

4. 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

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

6. 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

7. FY2016/2017 Operating Statement June 2017 & Fourth Quarter Summary

8. Operating Statement Summary June 2017 Year-to-Date

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

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

11. 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

12. June and 4th Quarter Year-to-Year Comparison

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

14. 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

15. 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

16. 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%

17. 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

18. Investment Portfolio History
Volatile year but steady growth over time.

19. 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

20. 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
Asset Summary As Of 06/30/2017
DESCRIPTION
MARKET VALUE
AVG COST
% OF
PORT
MUTUAL FUND - FIXED INCOME
2 , 4 45 ,
2 , 4 37 ,
4 9
MUTUAL FUND - DOMESTIC EQUITY
1 , 3 32 ,
1 , 1 84 ,
2 7
MUTUAL FUND - INTERNATIONAL EQUITY
8 34 ,
7 35 ,
1 7
UTUAL FUND - REAL ESTATE
3 43 ,
3 39 , 7
TOTAL INVESTMENTS
4 , ,
4 , ,
CASH
1 0 ,
DUE FROM BROKER
DUE TO BROKER
TOTAL MARKET VALUE
Ending Asset Allocation %
MUTUAL FUND - DOMESTIC EQUITY
1, 332 , %
MUTUAL FUND - FIXED INCOME
2, 445 , %
MUTUAL FUND - INTERNATIONAL EQUI
834 ,
6. 9 %
MUTUAL FUND - REAL ESTATE
343 , %
Total
4, 956 ,

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

22. 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

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

24. 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

25. 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

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

27. 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

28. Cash Flow Statement June 2017

29. Campus Contribution Summary

30. Campus Contributions Donations & Partnership Detail

31. Campus Contributions Reimbursed Services & Capital Detail

32. 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