2018

Statements of Net Position	2018	2017
Current assets
Unrestricted cash and cash equivalents	$71,893,409	$51,380,071
Restricted cash and cash equivalents	3,490,839	7,485,466
Unrestricted short-term investments	233,152,847	222,361,933
Restricted short-term investments	27,524,094	84,582,493
Accounts receivable, net	96,091,544	100,624,536
Current portion of notes receivable, net	4,462,276	3,511,833
Current portion of student loans receivable	2,020,335	2,070,459
Current portion of pledges receivable	8,685,620	6,488,635
Inventories	6,011,790	7,734,921
Prepaid expenses and unearned scholarships	98,987,483	99,224,430
Other current assets	1,567,540	1,128,541
Total current assets	553,887,777	586,593,318
Noncurrent assets
Restricted cash and cash equivalents	3,399,556	2,753,537
Endowment and life income investments	845,934,399	785,374,066
Investments for capital activities	339,549,277	426,683,893
Other long-term investments	315,413,514	297,559,736
Notes receivable, net	202,724,118	158,718,645
Student loans receivable, net	9,962,671	9,720,308
Pledges receivable, net	18,968,308	11,493,064
Capital assets, net	2,100,055,575	1,983,596,717
Other noncurrent assets	9,992,398	10,131,151
Total noncurrent assets	3,845,999,816	3,686,031,117
Total assets	4,399,887,593	4,272,624,435

Deferred outflows of resources
Debt refundings	13,141,640	14,024,748
Pension and OPEB obligations	162,406,491	144,365,221
Total deferred outflows of resources	175,548,131	158,389,969

Total assets and deferred outflows of resources	$4,575,435,724	$4,431,014,404

Current liabilities
Accounts payable and accrued liabilities	$143,398,543	$144,556,466
Current portion of unearned revenue	306,806,133	304,119,075
Deposits	51,389,406	113,330,935
Current portion of long-term debt	32,681,257	32,336,590
Total current liabilities	534,275,339	594,343,066
Noncurrent liabilities
Federal advances - loan funds	9,894,351	9,691,088
Other liabilities	5,068,723	5,193,510
Unearned revenue	6,884,253	5,927,827
Long-term debt, net	1,005,691,287	1,041,305,641
Pension liability	565,233,000	623,398,000
OPEB liability	257,683,278	-
Total noncurrent liabilities	1,850,454,892	1,685,516,066
Total liabilities	2,384,730,231	2,279,859,132

Deferred inflows of resources
Pension and OPEB obligations	86,757,158	16,054,000
Split interest - remainder interest	2,842,515	-
Total deferred inflows of resources	89,599,673	16,054,000

Net position
Net investment in capital assets	1,151,792,864	1,076,735,303
Restricted
Nonexpendable	458,967,808	431,499,195
Expendable	432,404,952	386,414,207
Unrestricted	57,940,196	240,452,567
Total net position	2,101,105,820	2,135,101,272

Total liabilities, deferred inflows of resources and net position	$4,575,435,724	$4,431,014,404

See accompanying notes to financial statements.

Statements of Revenues, Expenses, and Changes in Net Position	2018	2017
Operating Revenues
Tuition and fees	$786,236,725	$719,840,321
Less: scholarship allowances	(269,470,952)	(237,079,280)
Tuition and fees, net	516,765,773	482,761,041
Grants and contracts
Federal	44,549,124	40,416,650
State	31,215,296	31,261,415
Local	991,806	1,016,793
Private	5,589,320	3,836,612
Sales and services of educational activities	12,644,047	12,776,616
Auxiliary sales & services, net of $6,466,887 in 2018
and $6,466,509 in 2017 of scholarship allowances	200,256,134	202,333,172
Other operating revenues	63,073,638	59,247,356
Total operating revenues	875,085,138	833,649,655

Operating expenses
Salaries, wages and benefits	699,755,982	666,320,083
Supplies and services	262,939,882	253,651,612
Depreciation	75,485,224	72,374,750
Scholarships and fellowships	23,685,641	24,573,373
Total operating expenses	1,061,866,729	1,016,919,818
Operating loss	(186,781,591)	(183,270,163)

Nonoperating revenues (expenses)
State educational appropriations	156,742,802	154,836,324
Gifts	48,858,002	56,126,778
Grants	33,197,108	31,599,501
Investment income, net	90,064,841	159,687,169
Interest expense	(41,124,252)	(37,735,938)
Other nonoperating expenses, net	(1,603,514)	(1,636,955)
Net nonoperating revenues	286,134,987	362,876,879
Income before other changes in net position	99,353,396	179,606,716

Other changes in net position
Capital gifts and grants	65,669,021	18,696,113
Additions to permanent endowments	24,899,225	23,675,029
Intragovernmental transfers	(1,140,054)	2,341,871
Net other changes in net position	89,428,192	44,713,013
Increase in net position	188,781,588	224,319,729

Net position, beginning of year, as previously reported	2,135,101,272	1,910,781,543
Adoption of GASB 75 adjustment (note 1)	(222,777,040)	-
Net position, beginning of year, as restated, as of October 1, 2017	1,912,324,232	1,910,781,543
Net position, end of year	$2,101,105,820	$2,135,101,272

See accompanying notes to financial statements.

Statements of Cash Flows	2018	2017
Cash flows from operating activities
Student tuition and fees, net	$509,631,284	$521,702,146
Grants and contracts
Federal	45,360,194	40,825,048
State	31,294,062	29,167,170
Local	1,099,134	1,099,961
Private	7,980,472	4,480,097
Sales and services of educational activities	12,714,093	12,738,611
Other receipts	62,146,385	59,335,624
Auxiliary enterprises	192,455,962	195,084,006
Payments to suppliers	(256,920,443)	(241,396,471)
Payments to employees and related benefits	(667,601,300)	(632,784,072)
Payments for scholarships and fellowships	(22,710,738)	(39,502,047)
Payments for student loans	(192,239)	(439,296)
Other disbursements	-	(1,897,487)
Net cash used in operating activities	(84,743,134)	(51,586,710)

Cash flows from noncapital financing activities
State educational appropriations	156,742,802	154,836,324
Private gifts for other than capital purposes	73,339,194	82,279,502
Grants	33,197,108	31,599,501
Student direct lending receipts	212,187,107	207,562,707
Student direct lending disbursements	(213,239,044)	(207,745,641)
Deposits from affiliates	1,051,937	182,934
Other disbursements, net	(64,472,393)	(37,677,453)
Intragovernmental transfers	18,607,485	(20,913,965)
Borrowings from UA System Pools	60,000,000	30,000,000
Repayment to UA System Pools	(60,000,000)	(30,000,000)
Interest payments on UA System Pools borrowings	(123,288)	(72,583)
Net cash provided by noncapital financing activities	217,290,908	210,051,326

Cash flows from investing activities
Interest and dividends on investments	57,920,858	55,813,223
Purchases of investments	(231,689,720)	(373,688,186)
Proceeds from sales and maturities of investments	313,525,498	196,157,600
Payments received on notes receivable	8,909,243	9,438,006
Disbursements from issuance of notes receivable	(31,755,125)	(26,561,996)
Net cash provided by (used in) investing activities	116,910,754	(138,841,353)

Cash flows from capital and related financing activities
Proceeds from issuance of notes and bonds payable	-	208,311,002
Capital gifts, grants and contracts	30,803,352	17,335,495
Purchases of capital assets	(190,799,629)	(126,044,665)
Principal payments on capital debt	(29,970,290)	(22,569,826)
Defeasance of debt
Interest payments on capital debt	(42,128,445)	(39,945,192)
Intragovernmental transfers	(198,786)	5,567,625
Net cash used in capital and related financing activities	(232,293,798)	(19,117,636)

Net increase in cash and cash equivalents	17,164,730	505,627

Cash and cash equivalents, beginning of year	61,619,074	61,113,447
Cash and cash equivalents, end of year	$78,783,804	$61,619,074

Reconciliation of Cash and Cash equivalencies to the statements of net position
Unrestricted cash and cash equivalents-current	$71,893,409	$51,380,071
Restricted cash and cash equivalencies-current and noncurrent	6,890,395	10,239,003
Total cash and cash equivalents	$78,783,804	$61,619,074


Reconciliation of operating loss to net cash used in operating activities
Operating loss	$ (186,781,591)	$ (183,270,163)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation expense	75,485,224	72,374,750
Pension expense	62,225,221	76,777,201)
OPEB expense	23,184,939	-
Bad debt expense	430,220	1,482,708
Changes in assets and liabilities
Accounts and other receivables	(15,486,951)	(2,465,406)
Inventories and other assets	4,885,059	(14,723,212
Pension obligations	(48,018,757)	(45,024,221)
OPEB obligations	(7,988,277)	-
Accounts payable and accrued liabilities	6,692,309	8,773,073
Unearned revenue	1,5903,482	34,488,560
Deposits	(964,012)	-
Net cash used in operating activities	(84,743,134)	(51,586,710)
Supplemental noncash activities information
Gift of capital assets	$29,323,327	$5,984,061
Change in accrued capital asset purchases	(8,695,462)	7,148,721
Loss on the disposal of capital assets	(8,695,462)	7,148,721
Gain on the disposal of capital assets	2,404,900	-
Crimson Tide Foundation	2,848,889	2,722,854

See accompanying notes to financial statements.

Discretely Presented Component Units - Statements of Net Position

Discretely Presented Component Units	2018	2017
Assets
Current assets
Unrestricted cash and cash equivalents	$3,647,285	$2,975,405
Restricted cash and cash equivalents	22,473,898	20,561,006
Short-term investments	28,638,285	29,130,205
Accounts receivable, net	2,915,815	3,191,442
Current portion of notes receivable, net	965,951	931,715
Current portion of pledges receivable, net	373,514	162,898
Inventories	689,809	698,958
Prepaid expenses and unearned scholarships	150,389	117,810
Other current assets	1,503	-
Due from The University of Alabama	244,123	326,070
Total current assets	60,100,572	58,095,509

Noncurrent assets
Restricted cash and cash equivalents	6,230,169	6,230,169
Endowment investments	100,011,872	90,945,688
Other long-term investments	29,991,897	33,348,222
Pledges receivable, net	407,517	268,712
Capital assets, net	73,450,939	73,713,699
Other noncurrent assets	161,698	192,395
Total noncurrent assets	210,254,092	204,698,885
Total assets	270,354,664	262,794,394

Deferred outflows of resources	10,865,687	11,728,486

Total assets and deferred outflows of resources	$281,220,351	$274,522,880

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$3,115,863	$3,157,821
Unearned revenue	4,109,071	4,433,415
Current portion of long-term debt	3,754,622	3,701,670
Due to The University of Alabama	1,948,485	1,295,734
Total current liabilities	12,928,041	12,588,640

Noncurrent liabilities
Other liabilities	5,388,899	6,054,548
Long-term debt, net	90,442,557	94,197,179
Due to The University of Alabama	9,141,536	8,960,261
Total noncurrent liabilities	104,972,992	109,211,988
Total liabilities	117,901,033	121,800,628

Deferred inflows of resources	4,400,000	4,400,000

Net position
Net investment in capital assets	828,230	(1,382,427)
Restricted
Nonexpendable	61,254,669	56,621,799
Expendable	35,175,259	30,704,686
Unrestricted	61,661,160	62,378,194
Total net position	158,919,318	148,322,252
Total liabilities, deferred inflows of resources, and net position	$281,220,351	$274,522,880

See accompanying notes to financial statements.

Discretely Presented Component Units - Statements of Revenues, Expenses and Changes in Net Position

Discretely Presented Component Units	2018	2017
Operating revenues
Gifts	$11,695,462	$11,354,981
Other operating revenues	34,339,248	36,267,943
Total operating revenues	46,034,710	47,622,924

Operating expenses
Salaries, wages and benefits	13,109,304	13,731,958
Supplies and services	15,285,886	13,386,962
Depreciation	2,528,173	2,462,601
Scholarships and fellowships	3,709,686	3,546,438
Contributed services from affiliate	2,561,840	2,717,710
Total operating expenses	37,194,889	35,845,669
Operating income	8,839,821	11,777,255

Nonoperating revenues (expenses)
Investment income, net	9,389,679	10,966,282
Interest expense	(3,377,111)	(3,423,896)
Contributions to The University of Alabama	(6,772,358)	(2,527,238)
Change in value of split-interest agreements	(28,174)	(276,557)
Contributed services from affiliate	2,561,840	2,717,710
Other nonoperating expenses	(16,631)	(1,585,409)
Net nonoperating revenues	1,757,245	5,870,892
Increase in net position	10,597,066	17,648,147

Net position, beginning of year	148,322,252	130,674,105
Net position, end of year	$158,919,318	$148,322,252

See accompanying notes to financial statements.

2017-2018 Financial Report

Statements of Net Position

2017

Current assets

Noncurrent assets

Deferred outflows of resources

Current liabilities

Noncurrent liabilities

Deferred inflows of resources

Net position

Statements of Revenues, Expenses, and Changes in Net Position

2018

2017

Operating Revenues

Operating expenses

Nonoperating revenues (expenses)

Other changes in net position

Statements of Cash Flows

2018

2017

Cash flows from operating activities

Cash flows from noncapital financing activities

Cash flows from investing activities

Cash flows from capital and related financing activities

Reconciliation of Cash and Cash equivalencies to the statements of net position

Reconciliation of operating loss to net cash used in operating activities

Supplemental noncash activities information

Discretely Presented Component Units - Statements of Net Position

Assets

Noncurrent assets

Liabilities

Noncurrent liabilities

Net position

Discretely Presented Component Units - Statements of Revenues, Expenses and Changes in Net Position

Operating revenues

Operating expenses

Nonoperating revenues (expenses)