Years Ended September 30, 2017 and 2016
Note 5 – Receivables
Accounts receivable
Accounts receivable consist of amounts for student tuition and fees, contract and grant reimbursements due from third parties, and interest due on investments. Other receivables increased significantly in fiscal year 2017 due to a $16.2 million receivable to the Crimson Tide Foundation from the University at June 30, 2017. Due to the timing of the payment after CTF’s June 30 year end, it was a receivable for CTF at June 30, 2017, but not a payable for UA at September 30, 2017. The composition of accounts receivable at September 30, 2017 and 2016 is summarized below:
Notes receivable
In 2005, the University established a program to provide financial assistance to University student organizations to help those organizations improve the quality and safety of the residential options those organizations provide to students. This program has supported the construction of several new student organization facilities and renovations and additions to many others. As a result, the University has entered into notes receivables transactions with various student organizations. Notes receivable from student organizations bear interest rates ranging from 3.55% to 5.73% with terms up to 40 years. The composition of notes receivable at September 30, 2017 and 2016 is summarized as follows:
Student loans receivable
Student loans receivable represent all amounts owed on promissory notes from debtors, including student loans made under the Federal Perkins Loan Program and other loan programs. The composition of student loans receivable at September 30, 2017 and 2016, is summarized as follows:
Pledges receivable
Pledges receivable represent unconditional promises to give from third party donors and are presented at their gross, undiscounted amount. The composition of pledges receivable at September 30, 2017 and 2016, is summarized as follows: