2019

Statements of Net Position	2019	2018
Current assets
Unrestricted cash and cash equivalents	$108,110,486	$71,893,409
Restricted cash and cash equivalents	2,543,438	3,490,839
Unrestricted short-term investments	269,418,660	233,152,847
Restricted short-term investments	13,740,912	27,524,094
Accounts receivable, net	91,811,771	96,091,544
Current portion of notes receivable, net	5,040,811	4,462,276
Current portion of student loans receivable, net	2,000,480	2,020,335
Current portion of pledges receivable, net	11,670,109	8,685,620
Inventories	7,084,249	6,011,790
Prepaid expenses and unearned scholarships	102,708,473	98,987,483
Other current assets	2,126,151	1,567,540
Total current assets	616,255,540	553,887,777
Noncurrent assets
Restricted cash and cash equivalents	4,746,827	3,399,556
Endowment and life income investments	832,842,409	845,934,399
Investments for capital activities	650,087,836	339,549,277
Other long-term investments	216,514,251	315,413,514
Notes receivable, net	216,523,061	202,724,118
Student loans receivable, net	8,824,627	9,962,671
Pledges receivable, net	28,587,176	18,968,308
Capital assets, net	2,172,997,368	2,100,055,575
Other noncurrent assets	9,516,363	9,992,398
Total noncurrent assets	4,140,639,918	3,845,999,816
Total assets	4,756,895,458	4,399,887,593

Deferred outflows of resources
Debt refundings	18,582,271	13,141,640
Pension and OPEB obligations	180,721,290	162,406,491
Total deferred outflows of resources	199,303,561	175,548,131

Total assets and deferred outflows of resources	$4,956,199,019	$4,575,435,724

Current liabilities
Accounts payable and accrued liabilities	$139,091,428	$143,398,543
Current portion of unearned revenue	353,128,982	306,806,133
Deposits	35,251,861	51,389,406
Current portion of long-term debt	42,487,450	32,681,257
Total current liabilities	569,959,721	534,275,339
Noncurrent liabilities
Federal advances - loan funds	8,393,239	9,894,351
Other liabilities	4,509,004	5,068,723
Unearned revenue	8,058,359	6,884,253
Long-term debt, net	1,251,641,581	1,005,691,287
Pension liability	594,410,000	565,233,000
OPEB liability	267,378,182	257,683,278
Total noncurrent liabilities	2,134,390,365	1,850,454,892
Total liabilities	2,704,350,086	2,384,730,231

Deferred inflows of resources
Pension and OPEB obligations	92,807,931	86,757,158
Split interest - remainder interest	2,403,739	2,842,515
Total deferred inflows of resources	95,211,670	89,599,673

Net position
Net investment in capital assets	1,210,048,918	1,151,792,864
Restricted
Nonexpendable	480,733,622	458,967,808
Expendable	417,325,242	432,404,952
Unrestricted	48,529,481	57,940,196
Total net position	2,156,637,263	2,101,105,820

Total liabilities, deferred inflows of resources and net position	$4,956,199,019	$4,575,435,724

See accompanying notes to financial statements.

Statements of Revenues, Expenses, and Changes in Net Position	2019	2018
Operating Revenues
Tuition and fees	$806,275,024	$786,236,725
Less: scholarship allowances	(273,733,791)	(269,470,952)
Tuition and fees, net	532,541,233	516,765,773
Grants and contracts
Federal	54,497,395	44,549,124
State	31,209,610	31,215,296
Local	942,937	991,806
Private	6,838,737	5,589,320
Sales and services of educational activities	12,167,759	12,644,047
Auxiliary sales & services, net of $5,866,931 in 2019
and $6,466,887 in 2018 of scholarship allowances	201,829,933	200,256,134
Other operating revenues	66,807,573	63,073,638
Total operating revenues	906,835,177	875,085,138

Operating expenses
Salaries, wages and benefits	728,517,509	699,755,982
Supplies and services	275,323,598	262,939,882
Depreciation	78,865,931	75,485,224
Scholarships and fellowships	26,259,220	23,685,641
Total operating expenses	1,108,966,258	1,061,866,729
Operating loss	(202,131,081)	(186,781,591)

Nonoperating revenues (expenses)
State educational appropriations	169,733,687	156,742,802
Gifts	29,440,777	48,858,002
Grants	32,849,900	33,197,108
Investment income, net	12,791,392	90,064,841
Interest expense	(37,195,807)	(41,124,252)
Other nonoperating expenses, net	(2,383,758)	(1,603,514)
Net nonoperating revenues	205,236,191	286,134,987
Income before other changes in net position	3,105,110	99,353,396

Other changes in net position
Capital gifts and grants	33,713,554	65,669,021
Additions to permanent endowments	19,730,916	24,899,225
Intragovernmental transfers	(1,018,137)	(1,140,054)
Net other changes in net position	52,426,333	89,428,192
Increase in net position	55,531,443	188,781,588

Net position, beginning of year, as previously reported	2,101,105,820	2,135,101,272
Adoption of GASB 75 adjustment (note 1)	-	(222,777,040)
Net position, beginning of year, as restated, as of October 1, 2017	2,101,105,820	1,912,324,232
Net position, end of year	$2,156,637,263	$2,101,105,820

See accompanying notes to financial statements.

Statements of Cash Flows	2019	2018
Cash flows from operating activities
Student tuition and fees, net	$534,435,579	$509,631,284
Grants and contracts
Federal	55,169,586	45,360,194
State	32,045,107	31,294,062
Local	966,037	1,099,134
Private	6,770,688	7,980,472
Sales and services of educational activities	12,160,631	12,714,093
Other receipts	87,407,264	62,146,385
Auxiliary enterprises	208,246,359	192,455,962
Payments to suppliers	(283,862,050)	(256,920,443)
Payments to employees and related benefits	(699,780,275)	(667,601,300)
Payments for scholarships and fellowships	(21,196,727)	(22,710,738)
Receipts (payments) for student loans	1,157,899	(192,239)
Other disbursements	(1,250,830)	-
Net cash used in operating activities	(67,730,732)	(84,743,134)

Cash flows from noncapital financing activities
State educational appropriations	169,733,687	156,742,802
Private gifts for other than capital purposes	60,678,933	73,339,194
Return of gift	(20,000,000)	-
Grants	32,849,900	33,197,108
Student direct lending receipts	211,280,788	212,187,107
Student direct lending disbursements	(211,635,477)	(213,239,044)
Deposits from affiliates	354,689	1,051,937
Other disbursements, net	(16,536,842)	(64,472,393)
Intragovernmental transfers	(1,654,224)	18,607,485
Borrowings from UA System Pools	40,000,000	60,000,000
Repayment to UA System Pools	(40,000,000)	(60,000,000)
Interest payments on UA System Pools borrowings	(136,986)	(123,288)
Net cash provided by noncapital financing activities	224,934,468	217,290,908

Cash flows from investing activities
Interest and dividends on investments	57,990,752	57,920,858
Purchases of investments	(377,837,779)	(231,689,720)
Proceeds from sales and maturities of investments	104,230,420	313,525,498
Payments received on notes receivable	10,976,516	8,909,243
Disbursements from issuance of notes receivable	(23,930,211)	(31,755,125)
Net cash (used in) provided by investing activities	(228,570,302)	116,910,754

Cash flows from capital and related financing activities
Proceeds from issuance of notes and bonds payable	520,932,888	-
Capital gifts, grants and contracts	44,620,836	30,803,352
Purchases of capital assets	(149,377,332)	(190,799,629)
Principal payments on capital debt	(30,635,933)	(29,970,290)
Defeasance of debt	(236,378,668)
Interest payments on capital debt	(42,359,442)	(42,128,445)
Intragovernmental transfers	1,181,164	(198,786)
Net cash provided by (used in) capital and related financing activities	107,983,513	(232,293,798)

Net increase in cash and cash equivalents	36,616,947	17,164,730

Cash and cash equivalents, beginning of year	78,783,804	61,619,074
Cash and cash equivalents, end of year	$115,400,751	$78,783,804


Reconciliation of cash and cash equivalencies to the statements of net position
Unrestricted cash and cash equivalents-current	$108,110,486	$71,893,409
Restricted cash and cash equivalencies-current and noncurrent	7,290,265	6,890,395
Total cash and cash equivalents	$115,400,751	$78,783,804

Reconciliation of operating loss to net cash used in operating activities
Operating loss	$ (202,131,081)	$ (186,781,591)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation expense	78,865,931	75,485,224
Pension expense	64,529,757	62,225,221
OPEB expense	21,515,249	23,184,939
Bad debt expense	(894,535)	430,220
Changes in assets and liabilities
Accounts and other receivables	5,191,364	(15,486,951)
Inventories and other assets	(4,194,161)	4,885,059
Pension obligations	(51,222,334)	(48,018,757)
OPEB obligations	(8,214,794)	(7,988,277)
Accounts payable and accrued liabilities	1,294,613	6,692,309
Unearned revenue	29,064,995	1,593,482
Deposits	(1,535,736)	(964,012)
Net cash used in operating activities	(67,730,732)	(84,743,134)

Supplemental noncash activities information
Gift of capital assets	$3,345,848	$29,323,327
Change in accrued capital asset purchases	(3,099,069)	(8,695,462)
Loss on the disposal of capital assets	(1,017,317)	(218,712)
Gain on the disposal of capital assets	-	2,404,900
Crimson Tide Foundation	2,870,321	2,848,889

See accompanying notes to financial statements.

Summary of Discretely Presented Component Units

Statements of Net Position

Discretely Presented Component Units	2019	2018
Assets
Current assets
Unrestricted cash and cash equivalents	$2,277,826	$3,647,285
Restricted cash and cash equivalents	26,791,291	22,473,898
Short-term investments	30,168,658	28,638,285
Accounts receivable, net	3,210,256	2,915,815
Current portion of notes receivable, net	1,330,604	965,951
Current portion of pledges receivable, net	229,839	373,514
Inventories	808,180	689,809
Prepaid expenses and unearned scholarships	112,473	150,389
Other current assets	1,635	1,503
Due from The University of Alabama	153,603	244,123
Total current assets	65,084,365	60,100,572

Noncurrent assets
Restricted cash and cash equivalents	6,230,169	6,230,169
Endowment investments	102,320,540	100,011,872
Other long-term investments	30,678,862	29,991,897
Pledges receivable, net	198,185	407,517
Capital assets, net	70,979,349	73,450,939
Other noncurrent assets	161,697	161,698
Total noncurrent assets	210,568,802	210,254,092
Total assets	275,653,167	270,354,664

Deferred outflows of resources	10,002,88/7	10,865,687

Total assets and deferred outflows of resources	$285,656,054	$281,220,351

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$2,308,364	$2,530,524
Unearned revenue	4,355,862	4,109,071
Current portion of long-term debt	3,811,401	3,754,622
Due to The University of Alabama	4,335,546	2,533,824
Total current liabilities	14,811,173	12,928,041

Noncurrent liabilities
Other liabilities	4,349,025	5,388,899
Long-term debt, net	86,631,156	90,442,557
Due to The University of Alabama	8,759,217	9,141,536
Total noncurrent liabilities	99,739,398	104,972,992
Total liabilities	114,550,571	117,901,033

Deferred inflows of resources	4,500,000	4,400,000

Net position
Net investment in capital assets	876,125	828,230
Restricted
Nonexpendable	62,026,760	61,254,669
Expendable	34,588,080	35,025,314
Unrestricted	69,114,518	61,811,105
Total net position	166,605,483	158,919,318
Total liabilities, deferred inflows of resources, and net position	$285,656,054	$281,220,351

See accompanying notes to financial statements.

Statements of Revenues, Expenses and Changes in Net Position

Discretely Presented Component Units	2019	2018
Operating revenues
Gifts	$7,515,573	$7,753,229
Other operating revenues	38,220,520	34,339,248
Total operating revenues	45,736,093	42,092,477

Operating expenses
Salaries, wages and benefits	15,757,658	13,449,290
Supplies and services	12,922,932	14,945,900
Depreciation	2,494,079	2,528,173
Scholarships and fellowships	3,328,115	3,709,686
Contributed services from affiliate	2,334,035	2,561,840
Total operating expenses	36,836,819	37,194,889
Operating income	8,899,274	4,897,588

Nonoperating revenues (expenses)
Investment income, net	5,297,381	9,389,679
Interest expense	(3,320,447)	(3,377,111)
Contributions to The University of Alabama	(6,162,461)	(6,772,358)
Change in value of split-interest agreements	411,854	(28,174)
Contributed services from affiliate	2,334,035	2,561,840
Other nonoperating expenses	(7,162)	(16,631)
Net nonoperating (expenses) revenues	(1,446,800)	1,757,245
Increase before other changes in net position	7,452,474	6,654,833

Other changes in net position
Additions and other adjustments to permanent endowments	233,691	3,942,233
Increase in net position	7,686,165	10,597,066

Net position, beginning of year	158,919,318	148,322,252
Net position, end of year	$166,605,483	$158,919,318

See accompanying notes to financial statements.

2018-19 Financial Report

Statements of Net Position

2018

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

2019

2018

Operating Revenues

Operating expenses

Nonoperating revenues (expenses)

Other changes in net position

Statements of Cash Flows

2019

2018

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

Summary of Discretely Presented Component Units

Statements of Net Position

Discretely Presented Component Units

2019

2018

Assets

Liabilities

Deferred inflows of resources

Net position

Statements of Revenues, Expenses and Changes in Net Position

Discretely Presented Component Units﻿

2019

2018

Operating revenues

Operating expenses

Nonoperating revenues (expenses)

Other changes in net position

Discretely Presented Component Units