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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, 2019The 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 Permian Basin The University of Texas RioGrande 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, 2019. 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, 2019OfficersKevin P. Eltife, ChairmanJaniece Longoria, Vice ChairmanJames Conrad “Rad” Weaver, Vice ChairmanFrancie A. Frederick, General Counsel to the Board of RegentsMembersTerms scheduled to expire February 1, 2021*David J. BeckR. Steven “Steve” HicksNolan E. PerezHoustonAustinHarlingenTerms scheduled to expire February 1, 2023*Kevin P. EltifeJaniece LongoriaJames Conrad “Rad” WeaverTylerHoustonSan AntonioTerms scheduled to expire February 1, 2025*Christina Melton CrainJodie Lee JilesKelcy L. WarrenDallasHoustonDallasTerm scheduled to expire May 31, 2020*Daniel R. Dominguez (Student Regent)El Paso*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, 2019********James B. Milliken, ChancellorScott C. Kelley, Executive Vice Chancellor for Business AffairsSteven W. Leslie, Executive Vice Chancellor for Academic AffairsAmy Shaw Thomas, Executive Vice Chancellor for Health Affairs, ad interimStephanie A. Bond Huie, Vice Chancellor for Institutional Research and AnalysisDavid L. Lakey, Vice Chancellor for Health Affairs and Chief Medical OfficerStacey Napier, Vice Chancellor for Governmental RelationsRanda S. Safady, Vice Chancellor for External Relations, Communications, and Advancement ServicesDaniel H. Sharphorn, Vice Chancellor and General CounselThomas Britton “Britt” Harris IV, President, CEO and Chief Investment Officer–UTIMCO********
THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTERSENIOR ADMINISTRATIVE OFFICERSAs of August 31, 2019********Daniel K. Podolsky, M.D., PresidentArnim E. Dontes, Executive Vice President for Business AffairsW.P. Andrew Lee, M.D., Vice President for Academic Affairs, Provost, and DeanMarc A. Nivet, Ed.D. Executive Vice President for Institutional AdvancementJohn Warner, M.D., Executive Vice President for Health System AffairsClaire Aldridge, Ph.D., Interim Vice President for Technology DevelopmentAmanda Billings, Vice President for Development and Alumni RelationsCheyenne Currall, Ph.D., Vice President and Executive Advisor for Global AdvancementWilliam C. Daniel, M.D., Vice President and Chief Quality OfficerRuben E. Esquivel, Vice President for Community and Corporate RelationsJuan M. Guerra, Vice President for Facilities ManagementLeah Hurley, J.D., Vice President for Legal AffairsRobin M. Jacoby, Ph.D., Vice President and Chief of StaffChristopher Madden, M.D., Vice President and Chief Operations Officer, UT SouthwesternMedical GroupAngelica Marin-Hill, Vice President for Government Affairs and PolicyBecky McCulley, Vice President for Clinical Programming and Facility DevelopmentMarc E. Milstein, Vice President for Information Resources and Chief Information OfficerMack Mitchell, M.D., Vice President for Medical AffairsNatalie Romello, Vice President and Chief Compliance OfficerJohn D. Rutherford, M.D., Vice President for Clinical OperationsMarcia Schneider, Vice President, Health System Strategy & Business Development and HealthSystem Chief Strategy OfficerMichael Serber, Vice President for Financial Affairs and Institutional Chief Financial OfficerKim Siniscalchi, Vice President of Strategic InitiativesCameron Slocum, Vice President and Chief Operating Officer - Academic AffairsValla Wilson, Vice President for Internal Audit********
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) . 32Schedule B-8- Schedule of Changes in Net Position - Unexpended Plant Funds . 33Schedule B-11 - Schedule of Changes in Investment in Plant . 34Schedule B-13 - Schedule of Transfers Between Funds . 35Schedule C-1- Schedule of Tuition and Fees Revenue . 36Schedule C-1A - Schedule of Hospital Revenues . 37Schedule C-2- Schedule of Expenses by Object and Fund Group . 38Expense Class - Expense Classification Summary . 41Schedule C-2A - Schedule of Hospital Expenditures . 42Schedule D-6- Schedule of Medical Services, Research and Development Plan – Summary of Operations . 44Schedule D-6- Schedule of Health Professions Faculty Services Plan – Summary of Operations . 46Schedule 1-A- Schedule of Federal Financial Assistance . 48Schedule 1-B- Schedule of State Grant Pass-Throughs From/To State Agencies. 72SUPPLEMENTAL SCHEDULESSchedule S-4A - Schedule of Federal Expenditures by NACUBO Expenditure Function . 77Schedule S-8- Schedule of Changes in Net Position – Unexpended Plant Funds . 78Schedule S-11A - Schedule of Changes in Investment in Plant – Land . 107Schedule S-11B - Schedule of Changes in Investment in Plant – Buildings . 110Schedule S-11C - Schedule of Changes in Investment in Plant – Facilities and Other Improvements. 114Schedule S-11D - Schedule of Changes in Investment in Plant – Equipment . 118Schedule S-11E - Schedule of Changes in Investment in Plant – Construction in Progress . 121Schedule S-11F - Schedule of Changes in Investment in Plant – Infrastructure . 125Schedule S-11G - Schedule of Changes in Investment in Plant – Intangible Assets . 126
PRIMARY STATEMENTS
2The University of Texas Southwestern Medical CenterExhibit A Statement of Net PositionAs of August 31, 2019Educational andGeneralDesignatedAuxiliary EnterprisesRestrictedExpendableLoan FundsASSETS AND DEFERRED OUTFLOWSCurrent Assets:Cash & Cash EquivalentsRestricted Cash & Cash EquivalentsBalance in State AppropriationsAccounts Receivable, Net:Federal (allow. 0.00 in 2019 & 0.00 in 2018)Other Intergov. (allow. 0.00 in 2019 & 0.00 in 2018)Patient & Healthcare(allow. 141,915,853.17 in 2019 & 63,451,546.34 in 2018)Interest and Dividend ReceivablesContributions (allow. 0.00 in 2019 & 0.00 in 2018)Other (allow. 6,405,102.96 in 2019 & 2,844,267.38 in 2018)Due From System AdministrationDue From Other InstitutionsDue From Other AgenciesInventoriesLoans & Contracts (allow. 36,814.37 in 2019 & 33,185.02 in 2018)Other Current Assets 96.372,768,574.121,144,096.9668,542,533.10Total Current AssetsNoncurrent Assets:Cash and Cash Equivalents (Noncurrent Restricted)Restricted InvestmentsLoans & Contracts (allow. 89,086.25 in 2019 & 97,054.15 in 2018)Funds Held by System Administration (Restricted)Contributions Rec. (allow. 0.00 in 2019 & 0.00 in 2018)Unrestricted InvestmentsFunds Held by System Administration (Unrestricted)Other Noncurrent AssetsGross Capital/Intangible AssetsAccumulated Depreciation/AmortizationTotal Noncurrent 786,149.97141,854,919.9268,542,533.10Total 8711,665,646.646,976,820.061,111,411.72Total Deferred Outflows of 2,224.41Total Liabilities and Deferred 99,052.58852,224.41NET POSITIONNet Investment in Capital AssetsRestricted for:NonexpendablePermanent Health and True EndowmentsExpendableCapital ProjectsFunds Functioning as Endowment (Restricted)Other ExpendableUnrestrictedTotal Net 124,595.65Total Assets and Deferred OutflowsLIABILITIES 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 PayableAssets Held for OthersOther Current LiabilitiesTotal Current LiabilitiesNoncurrent Liabilities:Employees' Compensable LeaveNotes, Loans, and Leases PayableAsset Retirement 052.58217,844.702,154,029.77Other Noncurrent LiabilitiesTotal Noncurrent LiabilitiesTotal Liabilities385.41851,839.00851,839.00Total Deferred Inflows of Resources
3Endowment and SimilarEndowment andFunds - StateSimilar Funds - Other Annuity and Life Unexpended PlantPermanent Health FundThan StateIncome FundsFundsInvestment in ,142,566,492.27Prior 516,055.1281,729,336.8773,412,250.00Current 1.585,577,948,542.81
4The University of Texas Southwestern Medical CenterExhibit B Statement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended August 31, 2019Educational ExpendableLoan FundsEndowment andSimilar Funds State PermanentHealth FundOperating Revenues:Student Tuition and Fees Discounts and 2,188.05)(650,313.93)(396,334.66)Federal Sponsored ProgramsFederal Sponsored Programs Pass-Through from State AgenciesState Sponsored Programs Pass-Through from State l Sponsored Programs129,931,609.44131,206.36Private Sponsored ProgramsSales and Services of Educational ,694,404.19Sales and Services of Hospitals3,700,778,521.69Discounts and Allowances Sales and Services of Hospitals(2,224,402,714.66)Professional Fees (Patient Charges)2,257,074,398.83Discounts and Allowances Professional Fees (Patient Charges)(1,550,660,604.62)Auxiliary Enterprises24,046,598.59Other Operating RevenuesTotal Operating ,638,483.12150,667.11Operating Expenses:InstructionResearchPublic Service37,481.74Hospitals / ,876.91Academic SupportStudent 29.52Institutional tions and Maintenance of 2,359,059.11Scholarships and FellowshipsAuxiliary Enterprises105,214.3427,112,447.81Depreciation and AmortizationTotal Operating ExpensesOperating Income (Loss)Nonoperating Revenues (Expenses):State ,086,167.57Federal Nonexchange Sponsored ProgramsFederal Nonexchange Pass-ThroughState Nonexchange Pass-ThroughGift Contributions for Operations116,236.15Investment Income413,128.69Net Increase (Decrease) in Fair Value of Investments65,259,663.88Gain (Loss) on Sale of Capital AssetsOther Nonoperating RevenuesOther Nonoperating (Expenses)Net Nonoperating Revenues (Expenses)1,149.17(8,154,384.64)Income/(Loss) Before Other Revenue, Expenses, Gains/(Losses), .00Gifts and Sponsored Programs for Capital Acquisitions7,966,238.21Additions to Permanent EndowmentsReclass from/(to) Other Institutions921,068.65Capital Asset Purchases(9,161,310.18)Transactions Between FundsTransfers Between Institutions & System, Debt Service - MandatoryTransfers Between Institutions & System Admin. - Non mandatory(18,517,800.00)Transfers From Other State 9,560,166.24)88,299.8028,207.00Transfers to Other State Agencies(10,383.00)Legislative Appropriations Lapsed(2,331.00)Transfers Between FundsChange in Net PositionBeginning Net PositionEnding Net Position(17,486.76)238,266.38 0
5Endowment andSimilar Funds Other Than StateUnexpended PlantFundsInvestment in PlantCurrent YearTotals27,620,700.58Prior 714.66) (1,550,660,604.62) 542.81
6The University of Texas Southwestern Medical CenterExhibit C - Statement of Cash FlowsFor the Year Ended August 31, 2019Current 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 PurposesProceeds from Other Noncapital Financing ActivitiesReceipts 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 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 LeaveAsset Retirement ObligationsOther 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 934.95)(73,883,194.75)116,589,332.26131,005,551.72 247,594,883.98(21,570,323.44)152,575,875.16 .38472,644.28486,727.25159,739,486.33 (98,961,454.72) 39,942,269.3228,200.00(3,027,554.27)
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, 2019OperatingBudgetOPERATING 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 598.59121,778,540.272,959,580,222.04OPERATING EXPENSES:InstructionResearchPublic ServiceHospitals / ClinicsAcademic SupportStudent ServicesInstitutional SupportOperations and Maintenance of PlantScholarships and FellowshipsAuxiliary EnterprisesDepreciation and AmortizationTotal Operating 447.81183,365,468.023,228,493,969.22Operating Income 885.59NONOPERATING 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 1------214,735,280.30-Time DepositsRepurchase Agreements - Texas Treasury Safekeeping Trust Co.-US Treasury Bills and NotesCash Equivalent Investments (Intent)12,703,157.88-Departmental Suspense FundSubtotal Cash in State Treasury-Direct Deposit of Bills - Holding Account Fund-6,222,931.31-12,703,157.88-Permanent Health Fund--58,273,343.9158,273,343.91-Local Revenue Fund--ROI Fund 74.26Permanent 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 447.01-105,474.26-105,474.26Current Year 323,527.80Prior Year Total10
1,703,332.12Investment FundsOther InvestmentsTotal Investments and Securities Lending Collateral (Exhibit A)Securities Lending CollateralTotal Investments (Exhibit A)Investment Derivatives - Asset Positions-Physical ,456.661,114,780,840.3629,780,915.00-------Real EstateMineral Rights and Other Royalties-Real Estate Mortgages and Other 5.531,180,508,586.95RestrictedPUF Investment - Other-Bonds and Preferred Stock805,821,202.95307,256,305.29- Funds Held for Affiliated OrganizationsPooled Operating Funds (Held by System - ITF)Funds Held by System AdministrationInvestmentsNONCURRENT ASSETSUnrestrictedThe University of Tex
T HE U NIVERSITY OF T EXAS S OUTHWESTERN M EDICAL C ENTER A NNUAL F INANCIAL R EPORT (WITH DETAILED SUPPORTIVE SCHEDULES) U NAUDITED F ISCAL YEAR ENDED AUGUST 31, 201 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 Permian Basin The University of Texas Rio
