A N N F C REPORT I I «C«M.UM lB) HE UNIVERSITY OF NORTH CAROLINA AT WILMINGTON ^^^^^^^1 Financial Report 1995-96 T lMf^\A/ UJ-^l^yV The University ofNorth Carolina at Wilmington Table ofContents Letter ofTransmittal 2 Student Data 3 EndowmentFunds 4 Current Funds 5 Summary ofCurrentFunds 6 Balance Sheet 8 Statement ofChanges in Fund Balances 10 Statement ofCurrentFunds Revenues, Expenditures, and Other Changes 12 Consolidated Balance Sheet 14 Notes to Financial Statements 15 The Board ofTrustees and University Officers 26 A Letter of Transmittal To: Chancellor James R. Leutze and the Board ofTrustees ofThe University ofNorth Carolina at Wilmington I am pleased to submit the 1996 Financial ReportforThe University ofNorth CarolinaatWilmington. The reportcontains trenddataonthestudentbody,currentfundrevenueandexpendituregrowth,andafiveyearcomparisonofcurrentfunds. This information is provided to supplement ourbasic financial statements which include a Balance Sheet, Statement ofChanges inFundBalances,StatementofCurrentFundRevenues,Expenditures,andOtherChanges,andaConsolidatedBalanceSheet. Thefinancial statementsandthetrenddatapresentedreflectthecontinuedgrowthoftheUniversity. Asouracademic,public service, and research programs continue to grow in size and quality, financial and physical resources are being provided to meetprogrammatical needs. With the addition ofthe new Science Building and the BearHall Wing, an additional 110,000 grosssquarefeetofspacewasaddedtofacilitiesin 1995-96. However,theimpactofthisnewspacewillnotbefullyappreciated until the DeLoach Hall renovation project is completed and we become operational at the Myrtle Grove Center for Marine Science Research. Deloach Hall will be reopened in the summerof 1997 and construction on the Myrtle Grove Centerwill We begin in early 1997 with completion scheduled forfall 1998. greatly appreciate the efforts ofall concerned in obtaining these new facilities. However, with continued growth, new classroom buildings must be secured, from state-appropriated funds, in the nearfuture. These facilities, when combined with the Campus Commons project, renovation andexpansion of Westside Hall, the new Recreation Building, additional parking, and anew 200-studentDormitory, allfundedfromreceipts, will address the needs ofour present enrollment. During 1995-96,thefundingequity study wascompleted. Theresultsofthisstudyconfirmedthatfiveconstituentinstitutions of the University System - UNCW, UNCC, UNCG, East Carolina, and Appalachian State - were underfunded relative to southeastern regional institutions and otherUNC institutions. The amountofunderfunding at UNCWwas earmarked at 2.6 milliondollars. WeexpectlegislativeandUNCBoardofGovernorsactiontorectifythesefundingshortfallsinthenearfuture. UNCW will continue to be good stewards ofthese assets provided by the State. As one ofthe most efficient universities in thenation,weprovideasafe,clean,andfunctionalenvironmentinwhichlearningcantakeplace. Wetakeprideinthesuccess ofour students and our programs that support learning, research, and regional development. Very truly yours, /c^MM^^ f R.O. Walton, Jr. Vice Chancellor for Business Affairs Student Data The charts and tables presented on this page are designed to present the diversity and growth ofthe student body at The UniversityofNorthCarolinaatWilmington. Thesechartsarebased onthestudentpopulationfortheFallof1995 semester. Additionally, it should be noted thatthenumberofinternational students increased from 55 in the Fall of1994 to 66 inthe Fall of 1995. The entering freshman class forthe Fall of 1995 had average SAT scores of960. Status Residency Gender Race Full Time 80.1% In State 86.7% Female 59.1% White 91.2% PartTime 19.9% Out ofState 13.3% Male 40.9% Minority 8.8% Fall Enrollment 1992-1996 Thousands 12,000 10,000 87**5- 8,601 8,090 8,157 7,898 8,000 7,422 7,171 7,441 7,603 7,754 6,000 4,000 2,000 1991-92 1992-93 1993-94 1994-95 1995-96 Year FTE H Headcount The Endowment Fund The University receives support from the endowmentto provide additional resources in many needed areas. Endowment income is used to fund scholarships, professorships, student loans, organized research, and institutional support. These funds are an important resource forthe University. The endowment fund is composed of gifts and bequests from donors who have stipulated that the principal is to be retained and invested to produce income which must be expended in accordance with theirwishes. The endowmentfund is also composed of quasi-endowment funds which the Board of Trustees have designated as endowment funds. Quasi-endowment principal is retained and investedjust as otherendowment funds; however, the Board at its discretion, can move these funds from the endowment to current funds. Themarketvalue oftheendowmentfund oftheUniversity grewfrom $8.79 millionatJune 30, 1995,to $10.80 millionat June 30, 1996, an increase of$2.01 million. This represents an increaseof18.6% from the previousyear. This increase is attributed to gifts, transfers, capital gains and reinvestment of earnings. Through the generosity of many donors the endowment had gifts totaling $992,065 last year. The endowment was able to provide the University with $295,158 of support forthe numerous programs which it funds. Finally the endowment had atotal return of15.0% fortheyear ended June 30, 1996. Endowment Fund Assets MarketValueatJune30 1991-92 1995-96 Current Funds The current fund had total revenues of$ 90.23 million to fund current operations for the year ended June 30, 1996. This amount represents an increase of 2.2% over the prior period. Of the total current fund revenues, $58.69 million were recognized as revenue in unrestricted educational and general funds and $23.63 million in total revenues were generated in auxiliaryenterprisesfrom sales and services, studentfeesand investmentearnings. Theremaining $7.91 millionofrevenue were recognized in restricted funds. These charts represent education and general revenues and expenditures. Current Fund Revenues Current Fund Expenditures StateFunds56.1% Instruction60.1% Other 3.4% Research 8.8% Gifts,Grantsl3.6% StudentServ.5.1% Tuition/Fees26.9% Inst.Support11.7% PhysicalPiFti.n8a.nc6i%alAid5.7% The current fund had total expenditures of$86.18 million plus mandatory transfers of$2.82 million fora total of $89.00 million for the year ended June 30, 1996. This compares with total expenditures and mandatory transfers of $85.29 millioninthepriorperiodwhichrepresentsa4.4% increase inexpenditures Expendituresforunrestrictededucationaland . general purposes were $59.60 million; auxiliary enterprises, $18.66 million; and restricted funds, $7.91 million. Current Fund Revenues and Expenditures 1992-1996 $Million 110 100 90-23 88.28 89.oo 85.29 90 81.01 7\. 77.94 80 THF _, * 75.15 ZZZ71 69.49 70 60 50 A Z A x A \Z 40 1991-92 1992-93 1993-94 1994-95 1995-96 Year Q Q Revenues Expenditures Summary of Current Funds Five Year Comparison Years Ended June 30 1996 1995 REVENUES Educational and General: State Appropriations 37,358,417 41.4% $ 37,005,184 41.9% Tuition and Fees 17,921,599 19.9% 16,368,407 18.5% Federal Contracts and Grants 7,809,357 8.7% 8,388,514 9.5% State Contracts and Grants 210,866 0.2% 242,848 0.3% Private Contracts and Grants 1,059,997 1.2% 1,127,259 1.3% Endowment Income 265,908 0.3% 248,153 0.3% Investment Income 587,931 0.7% 508,844 0.6% Sales and Services 777,569 0.9% 647,295 0.7% Other Revenues 609,049 0.7% 487,697 0.6% Auxiliary Enterprises: Revenues 23,627,308 26.0% 23,262,493 26.3% Total Revenues $ 90,228,001 100.0% $ 88,286,694 100.0% EXPENDITURES AND MANDATORY TRANSFERS Educational and General: Instruction 32,383,357 36.4% $ 30,247,890 35.5% Organized Research 5,937,189 6.6% 5,887,039 6.9% Public Service 1,243,366 1.4% 1,573,167 1.8% Academic Support 6,942,040 7.8% 6,640,491 7.8% Student Services 3,437,208 3.9% 3,239,100 3.8% Institutional Support 7,912,772 8.9% 7,763,265 9.1% Physical Plant Operations 5,789,766 6.5% 5,680,666 6.7% Student Financial Aid 3,869,279 4.3% 3,774,973 4.4% Mandatory Transfers 80,083 0.1% 79,698 0.1% Auxiliary Enterprises: Expenditures 18,660,614 21.0% 17,663,765 20.7% Mandatory Transfers 2,746,115 3.1% 2,741,566 3.2% Total Expenditures and Mandatory Transfers $ 89,001,789 100.0% $ 85,291,620 100.0% 1994 1993 1992 $ 34,215,209 42.2% $ 33,859,962 43.4% $ 31,089,364 43.0% 14,531,080 17.9% 12,706,296 16.3% 11,549,055 16.0% 7,012,786 8.7% 8,355,636 10.7% 7,732,375 10.8% 138,333 0.2% 102,416 0.1% 106,267 0.1% 1,160,071 1.4% 1,254,905 1.6% 1,324,290 1.8% 212,235 0.3% 209,287 0.3% 214,608 0.3% 405,322 0.5% 381,586 0.5% 353,902 0.5% 613,797 0.8% 522,432 0.7% 414,131 0.6% 563,938 0.7% 399,388 0.5% 309,511 0.4 22,158,594 27.3% 20,155,113 25.9% 19,169,273 26.5% $ 81,011,365 100.0% $ 77,947,021 100.0% $ 72,262,776 100.0% * $ 27,621,892 34.6% $ 26,556,275 35.3% $ 24,967,862 35.9% 4,674,898 5.9% 5,217,619 6.9% 4,962,296 7.2% 918,926 1.2% 798,819 1.1% 665,599 1.0% 6,319,925 7.9% 5,376,030 7.2% 5,023,923 7.2% 3,097,994 3.9% 2,441,717 3.2% 2,308,931 3.3% 8,227,801 10.3% 7,172,320 9.6% 6,069,454 8.8% 5,261,334 6.6% 5,368,008 7.1% 4,952,691 7.1% 3,767,121 4.7% 3,844,144 5.1% 4,105,529 5.9% 42,441 0.1% 26,697 0.0% 26,697 0.0% 16,860,296 21.1% 15,305,985 20.4% 13,701,221 19.7% 2,939,835 3.7% 3,046,257 4.1% 2,706,070 3.9% $ 79,732,463 100.0% $ 75,153,871 100.0% $ 69,490,273 100.0% Balance Sheet June 30, 1996 Current Funds Unrestricted General Proprietary Restricted ASSETS Cash 433,074 3> 7,886,099 $ 878,114 Investments 13,214 Accounts and Notes Receivable (Net) 340,080 602,348 124,737 Investment Earnings 70,650 Other Receivables 87,922 1,340 50,700 Due from Others 220,693 41,999 613,747 Inventories 156,140 526,967 Prepaid Items 110,070 Land and Improvements Equipment (See Note 5) Buildings and Fixed Equipment Other Structures and Improvements Construction in Progress Literature Total Assets $ 7,418,629 $ 9,058,753 $ 1,680,512 LIABILITIES Accounts Payable 142,562 $ 946,544 $ 70,037 Accrued Payroll 680,017 60,977 76,739 Other Payables 94,538 38,579 Due to Others 33,769 275,530 548 Notes Payable Bonds Payable (Net) Interest Payable Contracts Payable - Retainage Funds Held for Others Deposits Payable 1,711,693 320 Accrued Vacation Leave 1,661,212 269,619 Deferred Revenue 1,609,655 71,244 Total Liabilities 5,935,446 1,662,813 147,324 FUND EQUITY Investment in General Fixed Assets Endowment - True Endowment - Quasi Restricted for Debt Service Restricted for Repair and Replacement Other Restricted Funds 1,533,188 Unrestricted - Designated Specific Purposes Unrestricted - Undesignated 1,483,183 7,395,940 Total Fund Equity 1,483,183 7,395,940 1,533,188 Total Liabilities and Fund Equity $ 7,418,629 $ 9,058,753 $ 1,680,512 The accompanying notes are an integral part ofthe financial statements. 8