2020 – UA Financial Reports | The University of Alabama

	2020	2019
Current assets
Unrestricted cash and cash equivalents	$156,722,199	$108,110,486
Restricted cash and cash equivalents	4,724,106	2,543,438
Unrestricted short-term investments	328,123,909	269,418,660
Restricted short-term investments	16,804,375	13,740,912
Accounts receivable, net	91,105,769	91,811,771
Current portion of notes receivable, net	3,827,210	5,040,811
Current portion of student loans receivable, net	1,929,194	2,000,480
Current portion of pledges receivable, net	18,467,892	11,670,109
Inventories	5,377,134	7,084,249
Prepaid expenses and unearned scholarships	95,669,266	102,708,473
Other current assets	3,008,604	2,126,151
Total current assets	725,759,658	616,255,540
Noncurrent assets
Restricted cash and cash equivalents	13,984,227	4,746,827
Endowment and life income investments	820,554,775	832,842,409
Investments for capital activities	432,015,246	650,087,836
Other long-term investments	217,288,549	216,514,251
Notes receivable, net	216,496,108	216,523,061
Student loans receivable, net	7,910,551	8,824,627
Pledges receivable, net	61,871,603	28,587,176
Capital assets, net	2,374,645,592	2,172,997,368
Other noncurrent assets	10,983,800	9,516,363
Total noncurrent assets	4,115,750,451	4,140,639,918
Total assets	4,881,510,109	4,756,895,458

Deferred outflows of resources
Debt refundings	17,372,261	18,582,271
Pension and OPEB obligations	168,514,132	180,721,290
Total deferred outflows of resources	185,886,393	199,303,561

Total assets and deferred outflows of resources	$5,067,396,502	$4,956,199,019

Current liabilities
Accounts payable and accrued liabilities	$157,835,424	$139,091,428
Current portion of unearned revenue	299,997,609	353,128,982
Deposits	43,638,808	35,251,861
Current portion of long-term debt	41,322,697	42,487,450
Total current liabilities	542,794,538	569,959,721
Noncurrent liabilities
Federal advances - loan funds	8,664,137	8,393,239
Other liabilities	17,402,817	4,509,004
Unearned revenue	10,009,965	8,058,359
Long-term debt, net	1,208,064,263	1,251,641,581
Pension liability	646,185,000	594,410,000
OPEB liability	108,975,155	267,378,182
Total noncurrent liabilities	1,999,301,337	2,134,390,365
Total liabilities	2,542,095,875	2,704,350,086

Deferred inflows of resources
Pension and OPEB obligations	199,594,551	92,807,931
Split interest - remainder interest	2,337,929	2,403,739
Total deferred inflows of resources	201,932,480	95,211,670

Net position
Net investment in capital assets	1,322,651,902	1,210,048,918
Restricted
Nonexpendable	502,203,055	480,733,622
Expendable	436,716,309	417,325,242
Unrestricted	61,796,881	48,529,481
Total net position	2,323,368,147	2,156,637,263

Total liabilities, deferred inflows of resources and net position	$5,067,396,502	$4,956,199,019

See accompanying notes to financial statements.

	2020	2019
Operating Revenues
Tuition and fees	$801,068,732	$806,275,024
Less: scholarship allowances	(275,547,610)	(273,733,791)
Tuition and fees, net	525,521,122	532,541,233
Grants and contracts
Federal	61,180,497	54,497,395
State	31,189,670	31,209,610
Local	1,200,281	942,937
Private	4,587,580	6,838,737
Sales and services of educational activities	9,866,923	12,167,759
Auxiliary sales & services, net of $5,866,931 in 2019
and $6,466,887 in 2018 of scholarship allowances	158,930,066	201,829,933
Other operating revenues	78,176,763	66,807,573
Total operating revenues	870,652,902	906,835,177

Operating expenses
Salaries, wages and benefits	711,111,598	728,517,509
Supplies and services	205,449,757	275,323,598
Depreciation	81,695,869	78,865,931
Scholarships and fellowships	35,435,733	26,259,220
Total operating expenses	1,033,692,957	1,108,966,258
Operating loss	(163,040,055)	(202,131,081)

Nonoperating revenues (expenses)
State educational appropriations	182,797,957	169,733,687
Gifts	54,380,178	29,440,777
Grants	51,528,484	32,849,900
Investment income, net	(10,630,633)	12,791,392
Interest expense	(39,045,098)	(37,195,807)
Other nonoperating expenses, net	(5,661,671)	(2,383,758)
Net nonoperating revenues	233,369,217	205,236,191
Income before other changes in net position	70,329,162	3,105,110

Other changes in net position
Capital gifts and grants	75,191,053	33,713,554
Additions to permanent endowments	26,868,269	19,730,916
Intragovernmental transfers	(5,657,600)	(1,018,137)
Net other changes in net position	96,401,722	52,426,333
Increase in net position	166,730,884	55,531,443

Net position, beginning of year, as previously reported	2,156,637,263	2,101,105,820
Net position, end of year	$2,323,368,147	$2,156,637,263

See accompanying notes to financial statements.

	2020	2019
Cash flows from operating activities
Student tuition and fees, net	$509,135,654	$534,435,579
Grants and contracts
Federal	55,258,897	55,169,586
State	36,095,388	32,045,107
Local	977,959	966,037
Private	5,709,516	6,770,688
Sales and services of educational activities	10,154,777	12,160,631
Other receipts	77,449,013	87,407,264
Auxiliary enterprises	145,620,207	208,246,359
Payments to suppliers	(198,989,069)	(283,862,050)
Payments to employees and related benefits	(682,885,335)	(699,780,275)
Payments for scholarships and fellowships	(25,129,088)	(21,196,727)
Receipts (payments) for student loans	985,362	1,157,899
Other disbursements	(1,167,492)	(1,250,830)
Net cash used in operating activities	(66,784,211)	(67,730,732)

Cash flows from noncapital financing activities
State educational appropriations	182,797,957	169,733,687
Private gifts for other than capital purposes	59,870,156	60,678,933
Return of gift	-	(20,000,000)
Grants	49,339,855	32,849,900
Student direct lending receipts	198,493,671	211,280,788
Student direct lending disbursements	(198,767,110)	(211,635,477)
Deposits from affiliates	273,439	354,689
Other disbursements, net	(780,506)	(16,536,842)
Intragovernmental transfers	(7,309,756)	(1,654,224)
Borrowings from UA System Pools	-	40,000,000
Repayment to UA System Pools	-	(40,000,000)
Interest payments on UA System Pools borrowings	-	(136,986)
Net cash provided by noncapital financing activities	283,917,706	224,934,468

Cash flows from investing activities
Interest and dividends on investments	59,136,114	57,990,752
Purchases of investments	(110,633,703)	(377,837,779)
Proceeds from sales and maturities of investments	206,994,536	104,230,420
Payments received on notes receivable	10,138,388	10,976,516
Disbursements from issuance of notes receivable	(3,663,747)	(23,930,211)
Net cash (used in) provided by investing activities	161,971,588	(228,570,302)

Cash flows from capital and related financing activities
Proceeds from issuance of notes and bonds payable	-	520,932,888
Capital gifts, grants and contracts	33,158,420	44,620,836
Purchases of capital assets	(272,785,330)	(149,377,332)
Principal payments on capital debt	(40,328,249)	(30,635,933)
Defeasance of debt	-	(236,378,668)
Interest payments on capital debt	(41,846,522)	(42,359,442)
Intragovernmental transfers	2,726,379	1,181,164
Net cash provided by (used in) capital and related financing activities	(319,075,302)	107,983,513

Net increase in cash and cash equivalents	60,029,781	36,616,947

Cash and cash equivalents, beginning of year	115,400,751	78,783,804
Cash and cash equivalents, end of year	$175,430,532	$115,400,751


Reconciliation of cash and cash equivalencies to the statements of net position
Unrestricted cash and cash equivalents-current	$156,722,199	$108,110,486
Restricted cash and cash equivalencies-current and noncurrent	18,708,333	7,290,265
Total cash and cash equivalents	$175,430,532	$115,400,751

Reconciliation of operating loss to net cash used in operating activities
Operating loss	$ (163,040,055)	$ (202,131,081)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation expense	81,695,869	78,865,931
Pension expense	82,167,334	64,529,757
OPEB expense	(9,175,222)	21,515,249
Bad debt expense	1,674,293	(894,535)
Closing costs at sale of CTF airplane	50,025	-
Changes in assets and liabilities
Accounts and other receivables	(2,518,620)	5,191,364
Inventories and other assets	8,849,230	(4,194,161)
Pension obligations	(52,175,581)	(51,222,334)
OPEB obligations	(8,450,780)	(8,214,794)
Accounts payable and accrued liabilities	20,779,431	1,294,613
Unearned revenue	(30,697,806)	29,064,995
Deposits	4,057,671	(1,535,736)
Net cash used in operating activities	(66,784,211)	(67,730,732)

Supplemental noncash activities information
Gift of capital assets	$46,534	$3,345,848
Change in accrued capital asset purchases	7,540,238	(3,099,069)
Loss on the disposal of capital assets	190,095	(1,017,317)
Non-cash transfer of funds from the STLP ot the LCRP	252,128,187	-
Crimson Tide Foundation	9,497,634	2,870,321

See accompanying notes to financial statements.

Summary of Discretely Presented Component Units

Statements of Net Position

	2020	2019
Assets
Current assets
Unrestricted cash and cash equivalents	$18,160,190	$2,277,826
Restricted cash and cash equivalents	29,370,187	26,791,291
Short-term investments	8,375,306	30,168,658
Accounts receivable, net	3,985,585	3,210,256
Current portion of notes receivable, net	1,156,193	1,330,604
Current portion of pledges receivable, net	325,595	229,839
Inventories	477,968	808,180
Prepaid expenses and unearned scholarships	164,258	112,473
Other current assets	10,714	1,635
Due from The University of Alabama	331,891	153,603
Total current assets	62,357,887	65,084,365

Noncurrent assets
Restricted cash and cash equivalents	6,230,169	6,230,169
Endowment investments	95,385,054	102,320,540
Other long-term investments	41,261,087	30,678,862
Pledges receivable, net	387,237	198,185
Capital assets, net	68,640,407	70,979,349
Other noncurrent assets	96,400	161,697
Total noncurrent assets	212,000,354	210,568,802
Total assets	274,358,241	275,653,167

Deferred outflows of resources	9,140,088	10,002,88/7

Total assets and deferred outflows of resources	$283,498,329	$285,656,054

Liabilities
Current liabilities
Accounts payable and accrued liabilities	$1,471,542	$2,308,364
Unearned revenue	4,237,068	4,355,862
Current portion of long-term debt	3,871,564	3,811,401
Due to The University of Alabama	2,910,795	4,335,546
Total current liabilities	12,490,969	14,811,173

Noncurrent liabilities
Other liabilities	4,310,102	4,349,025
Long-term debt, net	82,759,592	86,631,156
Due to The University of Alabama	8,393,219	8,759,217
Total noncurrent liabilities	95,462,913	99,739,398
Total liabilities	107,953,882	114,550,571

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

Net position
Net investment in capital assets	1,106,067	876,125
Restricted
Nonexpendable	64,916,955	62,026,760
Expendable	31,662,956	34,588,080
Unrestricted	73,358,469	69,114,518
Total net position	171,044,447	166,605,483
Total liabilities, deferred inflows of resources, and net position	$283,498,329	$285,656,054

See accompanying notes to financial statements.

Statements of Revenues, Expenses and Changes in Net Position

	2020	2019
Operating revenues
Gifts	$10,531,504	$7,515,573
Other operating revenues	36,306,535	38,220,520
Total operating revenues	46,838,039	45,736,093

Operating expenses
Salaries, wages and benefits	16,506,739	15,757,658
Supplies and services	11,853,478	12,922,932
Depreciation	2,492,942	2,494,079
Scholarships and fellowships	4,005,271	3,328,115
Contributed services from affiliate	2,458,395	2,334,035
Total operating expenses	37,316,825	36,836,819
Operating income	9,521,214	8,899,274

Nonoperating revenues (expenses)
Investment income, net	(2,887,198)	5,297,381
Interest expense	(3,262,941)	(3,320,447)
Contributions to The University of Alabama	(2,766,075)	(6,162,461)
Change in value of split-interest agreements	(481,564)	411,854
Contributed services from affiliate	2,458,395	2,334,035
Other nonoperating expenses	(7,300)	(7,162)
Net nonoperating (expenses) revenues	(6,946,683)	(1,446,800)
Increase before other changes in net position	2,574,531	7,452,474

Other changes in net position
Additions and other adjustments to permanent endowments	1,864,434	233,691
Increase in net position	4,438,965	7,686,165

Net position, beginning of year	166,605,482	158,919,318
Net position, end of year	$171,044,447	$166,605,483

See accompanying notes to financial statements.

Financial Statements

Summary of Discretely Presented Component Units

Statements of Net Position

Statements of Revenues, Expenses and Changes in Net Position