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T HE U NIVERSITY OF T EXASS OUTHWESTERN M EDICAL C ENTERANNUAL FINANCIAL REPORT(WITH DETAILED SUPPORTIVE SCHEDULES)UNAUDITEDFISCAL YEAR ENDED AUGUST 31, 2017The University of Texas at Arlington The University of Texas at Austin The University of Texas at Dallas The University of Texas at El Paso The University of Texas of the Permian Basin The University of TexasRio Grande Valley The University of Texas at San Antonio The University of Texas at Tyler The Universityof Texas Southwestern Medical Center The University of Texas Medical Branch at Galveston The Universityof Texas Health Science Center at Houston The University of Texas Health Science Center at San Antonio The University of Texas M. D. Anderson Cancer Center The University of Texas Health Science Center atTyler The University of Texas System Administration
THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTERFINANCIAL STATEMENTS(WITH DETAILED SUPPORTIVE SCHEDULES)Presented herein are the financial statements with detailed supportive schedules forThe University of Texas Southwestern Medical Center for the year endedAugust 31, 2017. These Statements and detailed supportive schedules have beenprepared in compliance with applicable State statutes, Governmental AccountingStandards Board pronouncements, and the Texas Comptroller of Public Accounts’Annual Financial Reporting Requirements.This “detailed internal report” supplements the consolidated published AnnualFinancial Report of The University of Texas System and is intended to be for limiteddistribution primarily to financial and academic officers of the University who needaccess to the details included herein. It also provides an historical record oftransactions relating to this particular institution.The Annual Financial Report for public distribution for The University of Texas Systemincludes primary statements on a consolidated System-wide basis, includingfootnotes and Managements’ Discussion and Analysis.
THE UNIVERSITY OF TEXAS SYSTEMBOARD OF REGENTSAs of August 31, 2017OfficersPaul L. Foster, ChairmanR. Steven “Steve” Hicks, Vice ChairmanJeffery D. Hildebrand, Vice ChairmanFrancie A. Frederick, General Counsel to the Board of RegentsMembersTerms scheduled to expire February 1, 2019*Paul L. FosterJeffery D. HildebrandErnest AlisedaEl PasoHoustonMcAllenTerms scheduled to expire February 1, 2021*R. Steven “Steve” HicksDavid J. BeckSara Martinez TuckerAustinHoustonDallasTerms scheduled to expire February 1, 2023*Janiece LongoriaKevin P. EltifeJames Conrad “Rad” WeaverHoustonTylerSan AntonioTerm scheduled to expire May 31, 2018*Jaciel Castro (Student Regent)San Antonio*Each Regent’s term expires when a successor has been appointed, qualified, and taken the oath of office.The Student Regent serves a one-year term.
THE UNIVERSITY OF TEXAS SYSTEMSENIOR ADMINISTRATIVE OFFICIALSAs of August 31, 2017********William H. McRaven, ChancellorDavid E. Daniel, Deputy ChancellorRaymond S. Greenberg, Executive Vice Chancellor for Health AffairsScott C. Kelley, Executive Vice Chancellor for Business AffairsSteven W. Leslie, Executive Vice Chancellor for Academic AffairsStephanie A. Bond Huie, Vice Chancellor for Strategic InitiativesBarry R. McBee, Vice Chancellor and Chief Governmental Relations OfficerRanda S. Safady, Vice Chancellor for External RelationsDaniel H. Sharphorn, Vice Chancellor and General CounselWilliam H. Shute, Vice Chancellor for Federal RelationsAmy Shaw Thomas, Vice Chancellor for Academic and Health AffairsThomas Britton “Britt” Harris IV, Chief Executive Officer and Chief Investment Officer–UTIMCO********
THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTERSENIOR ADMINISTRATIVE OFFICERSAs of August 31, 2017********Daniel K. Podolsky, M.D., PresidentArnim E. Dontes, Executive Vice President for Business AffairsJ. Gregory Fitz, M.D., Executive Vice President for Academic Affairs and Provost DeanBruce A. Meyer, M.D., MBA, Executive Vice President for Health System AffairsMarc A. Nivet, Ed.D., M.B.A, Executive Vice President for Institutional AdvancementMack Mitchell, M. D., Vice President for Medical AffairsAmanda Billings, Vice President for DevelopmentWilliam C. Daniel, M.D., Vice President for Health System AffairsRuben E. Esquivel, Vice President for Community and Corporate RelationsFrank Grassler, Vice President for Technology DevelopmentJuan M. Guerra, Vice President for Facilities ManagementLeah Hurley, J.D., Vice President for Legal AffairsRobin M. Jacoby, Ph.D., Vice President and Chief of StaffAngelica Marin-Hill, Vice President for Government Affairs and PolicyKirk Kirksey, Vice President for Information ResourcesWes Norred, Vice President for Student and Alumni AffairsJohn D. Rutherford, M.D., Vice President for Clinical OperationsMichael Serber, Vice President for Financial AffairsKim Siniscalchi, Vice President of Strategic InitiativesCameron Slocum, Vice President and Chief Operating Officer - Academic AffairsIvan Thompson, Vice President for Human ResourcesJohn Warner, M.D., Vice President, Chief Executive Officer, University HospitalsMarinan Williams, Senior Executive Officer for Payor RelationsAngela Wishon, JD, Vice President for Research Administration********
TABLE OF CONTENTSTHE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTERPRIMARY STATEMENTSExhibit A- Statement of Net Position.2Exhibit B- Combined Statement of Revenues, Expenses and Changes in Net Position .4Exhibit C- Combined Statement of Cash Flows .6Exhibit D- Comparison of Budget to Actual Statement of Revenues, Expenses and Changes in NetPosition .7SUPPORTING SCHEDULESSchedule A-1- Schedule of Cash, Cash Equivalents, and Investments . 10Schedule A-3A - Schedule of Legislative Appropriations . 12Schedule B-1- Schedule of Educational and General Funds – Summary of Operations . 13Schedule B-2- Schedule of Designated Funds – Summary of Operations . 14Schedule B-3- Schedule of Auxiliary Enterprise Funds – Summary of Operations . 16Schedule B-4- Schedule of Restricted Expendable Funds – Summary of Operations . 17Schedule B-6A - Schedule of Changes in Net Position Endowment and Similar Funds - Other than State . 18Schedule B-6C - Schedule of Changes in Net Position Endowment and Similar Funds - State (PermanentHealth Fund) . 35Schedule B-8- Schedule of Changes in Net Position - Unexpended Plant Funds . 36Schedule B-11- Schedule of Changes in Investment in Plant . 37Schedule B-13- Schedule of Transfers Between Funds . 38Schedule C-1- Schedule of Tuition and Fees Revenue . 39Schedule C-1A - Schedule of Hospital Revenues . 40Schedule C-2- Schedule of Expenses by Object and Fund Group . 41Expense Class - Expense Classification Summary . 44Schedule C-2A - Schedule of Hospital Expenditures . 45Schedule D-6- Schedule of Medical Services, Research and Development Plan – Summary of Operations . 46Schedule D-6- Schedule of Health Professions Faculty Services Plan – Summary of Operations . 48Schedule 1-A- Schedule of Federal Financial Assistance . 50Schedule 1-B- Schedule of State Grant Pass-Throughs From/To State Agencies. 82SUPPLEMENTAL SCHEDULESSchedule S-4A - Schedule of Federal Expenditures by NACUBO Expenditure Function . 87Schedule S-8- Schedule of Changes in Net Position – Unexpended Plant Funds . 89Schedule S-11A - Schedule of Changes in Investment in Plant – Land . 108Schedule S-11B - Schedule of Changes in Investment in Plant – Buildings . 111Schedule S-11C - Schedule of Changes in Investment in Plant – Facilities and Other Improvements. 115Schedule S-11D - Schedule of Changes in Investment in Plant – Equipment . 119Schedule S-11E - Schedule of Changes in Investment in Plant – Construction in Progress . 122Schedule S-11F - Schedule of Changes in Investment in Plant – Infrastructure . 128Schedule S-11G - Schedule of Changes in Investment in Plant – Intangible Assets . 129
PRIMARY STATEMENTS
2The University of Texas Southwestern Medical CenterExhibit A Statement of Net PositionAs of August 31, 2017Educational andGeneralDesignatedAuxiliary EnterprisesRestrictedExpendableLoan FundsASSETS AND DEFERRED OUTFLOWSCurrent Assets:Cash & Cash EquivalentsRestricted Cash & Cash EquivalentsBalance in State AppropriationsAccounts Receivable, Net:Federal (allow. 0.00 in 2017 & 0.00 in 2016)Other Intergov. (allow. 1,635,661.10 in 2017 & 0.00 in 2016)Patient & Healthcare(allow. 29,428,355.71 in 2017 & 114,892,417.14 in 2016)Interest and Dividend ReceivablesContributions (allow. 0.00 in 2017 & 0.00 in 2016)Other (allow. 2,208,653.07 in 2017 & 641,990.97 in 2016)Due From System AdministrationDue From Other InstitutionsDue From Other AgenciesInventoriesLoans & Contracts (allow. 48,049.68 in 2017 & 41,379.88 in 2016)Other Current Assets 58,956,053.95Total Current t Assets:Cash and Cash Equivalents (Noncurrent Restricted)Restricted InvestmentsLoans & Contracts (allow. 202,451.40 in 2017 & 199,357.67 in 2016)Funds Held by System Administration (Restricted)Contributions Rec. (allow. 0.00 in 2017 & 0.00 in 2016)Unrestricted InvestmentsOther Noncurrent AssetsGross Capital/Intangible AssetsAccumulated Depreciation/AmortizationTotal Noncurrent 69,142,746.15483,639,933.0810,416,274.23Total 0,086,110.1411,625,556.91Total Assets and Deferred 1.93276,503.547,368,712.32LIABILITIES AND DEFERRED INFLOWSCurrent Liabilities:Accounts Payable and Accrued LiabilitiesSalaries PayableDue To System AdministrationDue To Other InstitutionsDue To Other State AgenciesUnearned RevenueEmployees' Compensable Leave - Current PortionNotes, Loans, and Leases PayablePayable From Restricted AssetsAssets Held for OthersOther Current 4Total Current LiabilitiesNoncurrent Liabilities:Employees' Compensable LeaveNotes, Loans, and Leases PayableOther Noncurrent 142,680.58Total 66,339,916.4215.55Total Liabilities and Deferred 39,916.4215.55NET POSITIONNet Investment in Capital AssetsRestricted for:NonexpendablePermanent Health, True Endowments, and AnnuitiesExpendableCapital ProjectsFunds Functioning as Endowment (Restricted)Other ExpendableUnrestrictedTotal Net ,625,541.36Total Noncurrent Liabilities 172,431.42
3Endowment and SimilarEndowment andFunds - StateSimilar Funds - Other Unexpended PlantPermanent Health FundThan StateFundsInvestment in PlantAgency 795,300.00Current YearTotalsPrior 5,839,831.53 ,520,949.91 3,249,052,856.88(1,384,470,273.84) (1,239,000,564.39)4,830,799,057.88 6.07
4The University of Texas Southwestern Medical CenterExhibit B Statement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended August 31, 2017Educational ExpendableLoan FundsEndowment andSimilar Funds State PermanentHealth FundOperating Revenues:Student Tuition and FeesDiscounts and AllowancesFederal Sponsored ProgramsFederal Sponsored Programs Pass-Through from State AgenciesState Sponsored Programs Pass-Through from State Agencies 890,961.91)(340,874.33)1,438,961.01Local Sponsored ProgramsPrivate Sponsored ProgramsSales and Services of Educational 14,687.92)Sales and Services of HospitalsDiscounts and Allowances Sales and Services of Hospitals(1,724,566,133.19)Professional Fees (Patient Charges)Discounts and Allowances Professional Fees (Patient 0,525.32Auxiliary EnterprisesOther Operating RevenuesTotal Operating 79.962,312,078,584.08Operating ,994.1128,017,221.701,943,210.47Public ServiceHospitals / Clinics814,012.36Academic SupportStudent Services7,464,524.16Institutional SupportOperations and Maintenance of PlantScholarships and FellowshipsAuxiliary EnterprisesDepreciation and AmortizationTotal Operating ExpensesOperating Income ting Revenues (Expenses):State 210,174.78Federal Nonexchange Sponsored ProgramsFederal Nonexchange Pass-ThroughState Nonexchange Pass-ThroughGift Contributions for OperationsInvestment Income212,497.01116,414.52Other Nonoperating RevenuesOther Nonoperating (Expenses)Net Nonoperating Revenues (Expenses)Income/(Loss) Before Other Revenue, Expenses, Gains/(Losses), 246,419.404,810,700.00Net Increase (Decrease) in Fair Value of InvestmentsGain (Loss) on Sale of Capital AssetsGifts and Sponsored Programs for Capital AcquisitionsAdditions to Permanent Endowments / Annuities9,103,122.62889,580.68Reclass from/(to) Other InstitutionsCapital Asset PurchasesTransactions Between 5.95Transfers Between Institutions & System, Debt Service - MandatoryTransfers Between Institutions & System Admin. - Non mandatoryTransfers From Other State AgenciesTransfers to Other State AgenciesLegislative Appropriations ransfers Between FundsChange in Net PositionBeginning Net PositionRestatementsBeginning Net Position (As Restated)Ending Net Position363,312.85227,465,267.01 46,193.7211,625,541.3669,795,300.00
5Endowment andSimilar Funds Other Than StateUnexpended PlantFundsInvestment in PlantCurrent YearTotalsPrior .29(1,724,566,133.19) (1,215,144,475.57) .61963,222,534.275,361,204.26
6The University of Texas Southwestern Medical CenterExhibit C - Statement of Cash FlowsFor the Year Ended August 31, 2017Friday, October 13, 2017 : 2:44 PMCurrent Year TotalsCash Flows from Operating Activities:Proceeds from Tuition and FeesProceeds from Patients and CustomersProceeds from Sponsored ProgramsProceeds from AuxiliariesProceeds from Other RevenuesPayments to SuppliersPayments to EmployeesPayments for Loans ProvidedProceeds from Loan ProgramsNet Cash Provided (Used) by Operating ActivitiesCash Flows from Noncapital Financing Activities:Proceeds from State AppropriationsProceeds from Operating GiftsProceeds from Private Gifts for Endowment and Annuity Life PurposesProceeds from Other Nonoperating RevenuesReceipts for Transfers from System or Other AgenciesPayments for Transfers to System or Other AgenciesPayments for Other UsesNet Cash Provided by Noncapital Financing ActivitiesCash Flows from Capital and Related Financing Activities:Nonmandatory Capital Related TransfersProceeds from Capital Appropriations, Grants, and GiftsProceeds from Sale of Capital AssetsPayments for Additions to Capital AssetsMandatory Transfers to System for Capital Related DebtNet Cash Provided (Used) by Capital and Related Financing ActivitiesCash Flows from Investing ActivitiesProceeds from Sales of Investments Invested by SystemProceeds from Interest and Investment IncomeProceeds from Interest and Investment Income Invested by SystemPayments to Acquire InvestmentsPayments to Acquire Investments Invested by SystemNet Cash Provided (Used) by Investing ActivitiesNet Increase (Decrease) in CashCash and Cash Equivalents (Beginning of the Year)Cash and Cash Equivalents (End of the Year)Reconciliation of Net Operating Revenues (Expenses) to Net CashProvided (Used) by Operating ActivitiesOperating Income (Loss)Adjustments to Reconcile Operating Results to Net Cash:Depreciation and Amortization ExpenseBad Debt ExpenseChanges in Assets and Liabilities:Accounts ReceivableInventoriesLoans and ContractsOther Current and Noncurrent AssetsAccounts PayableDue to SystemUnearned RevenueAssets Held for OthersEmployees' Compensable LeaveOther Current and Noncurrent LiabilitiesTotal AdjustmentsNet Cash Provided (Used) by Operating ActivitiesNon Cash Transactions:Net Increase (Decrease) in Fair Value of InvestmentsDonated Capital AssetsMiscellaneous Noncash TransactionsPrior Year 96,404,905.47)32,705,632.68119,870,242.48 152,575,875.16(5,985,896.10)125,856,138.58 ,509.77)125,527,480.97 (97,828,721.80) 8.60)(6,167,399.59)5,245,561.00662,541.57
7The University of Texas Southwestern Medical CenterExhibit D Comparison of Budget to Actual Statement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended August 31, 2017OperatingBudgetOPERATING REVENUES:Net Student Tuition and FeesFederal Sponsored ProgramsState Sponsored ProgramsLocal and Private Sponsored ProgramsNet Sales and Services of Educational ActivitiesNet Sales and Services of HospitalsNet Professional FeesNet Auxiliary EnterprisesOther Operating RevenuesTotal Operating Revenues 8.05151,664,302.902,575,207,303.47OPERATING EXPENSES:InstructionResearchPublic ServiceHospitals / ClinicsAcademic SupportStudent ServicesInstitutional SupportOperations and Maintenance of PlantScholarships and FellowshipsAuxiliary EnterprisesDepreciation and AmortizationTotal Operating 0.53168,852,347.942,741,414,365.24Operating Income ING REVENUES (EXPENSES):State AppropriationsGift Contributions for OperationsInvestment IncomeNet Increase (Decrease) in Fair Value of InvestmentsOther Nonoperating Revenues (Expenses)Net Nonoperating Revenues (Expenses)TRANSFERS AND OTHERS:Capital Appropriations, Gifts, and Sponsored ProgramsAdditions to Permanent EndowmentsTransfers for Debt ServiceTransfers and OtherTotal Transfers and OtherChange in Net Position
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9SUPPORTING SCHEDULES
-US Savings Bond Account FundDeferred Compensation 401K FundDirect Deposit Hold - Transmit Account FundCorrection Account for Direct Deposit FundTotal Cash and Cash Equivalents (Exhibit A)Reimbursements due from State TreasurySubtotal Cash Equivalent InvestmentsMoney Market ------126,908,284.94-Time DepositsRepurchase Agreements - Texas Treasury Safekeeping Trust Co.-US Treasury Bills and NotesCash Equivalent Investments (Intent)11,974,362.72-Departmental Suspense FundSubtotal Cash in State Treasury-Direct Deposit of Bills - Holding Account Fund-3,860,895.06-11,974,362.72-Permanent Health Fund--7,752,020.897,752,020.89-Local Revenue Fund--ROI Fund .18Permanent University Fund Available University FundCash in State TreasurySubtotal Cash in BankDemand AccountsDemand Cash Held by SystemCash in BankSubtotal Cash on HandCash in TransitPetty CashCash on HandCash & Cash EquivalentsRestrictedCURRENT ASSETSUnrestrictedThe University of Texas Southwestern Medical CenterSchedule A-1 Schedule of Cash, Cash Equivalents, and InvestmentsAs of August 31, strictedNONCURRENT 2-111,486.18-111,486.18Current Year 54,151.50Prior Year Total10
-1,706,649,700.75959,218,869.48Investment FundsOther InvestmentsInvestment Derivatives - Asset PositionsTotal Investments and Securities Lending Collateral (Exhibit A)Securities Lending CollateralTotal Investments (Exhibit A)-Physical 55----Mineral Rights and Other .221,115,839,831.53RestrictedPUF Investment - Other-Real Estate1,624,421.94Real Estate Mortgages and Other NotesStocks-Bonds and Preferred Stock957,594,447.54- Funds Held for Affiliated OrganizationsPooled Operating Funds (Held by System - ITF)Funds Held by System AdministrationInvestmentsNONCURRENT ASSETSUnrestrictedThe University of Texas Southwestern Medical CenterSchedule A-1 Schedule of Cash, Cash Equivalents, and InvestmentsAs of August 31, 5------49,366,855.39-12,488,332.0
THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER ANNUAL FINANCIAL REPORT (WITH DETAILED SUPPORTIVE SCHEDULES) UNAUDITED FISCAL YEAR ENDED AUGUST 31, 2017 The University of Texas at Arlington The University of Texas at Austin The University of Texas at Dallas The University of Texas at El Paso The University of Texas of the Permian Basin The University of Texas
