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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, 2016. 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, 2016OfficersPaul 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, 2017*Alex M. CranbergWallace L. Hall, Jr.Brenda PejovichHoustonDallasDallasTerms 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 TuckerAustinHoustonDallasTerm scheduled to expire May 31, 2017*Varun P. Joseph (Student Regent)McKinney*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, 2016********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 AffairsBruce E. Zimmerman, Chief Executive Officer and Chief Investment Officer–UTIMCO********
THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTERSENIOR ADMINISTRATIVE OFFICERSAs of August 31, 2016********Daniel K. Podolsky, M.D., PresidentJ. Gregory Fitz, M.D., Executive Vice President for Academic Affairs and Provost DeanBruce A. Meyer, M.D., MBA, Executive Vice President for Health System AffairsArnim E. Dontes, Executive Vice President for Business AffairsMichael Serber, Vice President for Financial AffairsJohn Warner, M.D., Vice President, Chief Executive Officer, University HospitalsJohn D. Rutherford, M.D., Vice President for Clinical OperationsIvan Thompson, Vice President for Human ResourcesSteve Moore, Vice President for Communications, Marketing, and Public AffairsRuben E. Esquivel, Vice President for Community and Corporate RelationsAmanda Billings, Vice President for DevelopmentLeah Hurley, J.D., Vice President for Legal AffairsRobin M. Jacoby, Ph.D., Vice President and Chief of StaffKirk Kirksey, Vice President for Information ResourcesWes Norred, Vice President for Student and Alumni AffairsJuan M. Guerra, Vice President for Facilities ManagementAngelica Marin-Hill, Vice President for Government Affairs and PolicyAngela Wishon, JD, Vice President for Research AdministrationFrank Grassler, Vice President for Technology DevelopmentCameron Slocum, Vice President and Chief Operating Officer - Academic AffairsMarinan Williams, Senior Executive Officer for Payor RelationsKim Siniscalchi, Vice President of Strategic Initiatives********
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) . 34Schedule B-8- Schedule of Changes in Net Position - Unexpended Plant Funds . 35Schedule B-11 - Schedule of Changes in Investment in Plant . 36Schedule B-13 - Schedule of Transfers Between Funds . 37Schedule C-1- Schedule of Tuition and Fees Revenue . 38Schedule C-1A - Schedule of Hospital Revenues . 39Schedule C-2- Schedule of Expenses by Object and Fund Group . 40Expense Class - Expense Classification Summary . 42Schedule C-2A - Schedule of Hospital Expenditures . 43Schedule 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. 68SUPPLEMENTAL SCHEDULESSchedule S-4A - Schedule of Federal Expenditures by NACUBO Expenditure Function . 72Schedule S-8- Schedule of Changes in Net Position – Unexpended Plant Funds . 73Schedule S-11A - Schedule of Changes in Investment in Plant – Land . 86Schedule S-11B - Schedule of Changes in Investment in Plant – Buildings . 89Schedule S-11C - Schedule of Changes in Investment in Plant – Facilities and Other Improvements. 93Schedule S-11D - Schedule of Changes in Investment in Plant – Equipment . 96Schedule S-11E - Schedule of Changes in Investment in Plant – Construction in Progress . 99Schedule S-11F - Schedule of Changes in Investment in Plant – Infrastructure . 104Schedule S-11G - Schedule of Changes in Investment in Plant – Intangible Assets . 105
PRIMARY STATEMENTS
2The University of Texas Southwestern Medical CenterExhibit A Statement of Net PositionAs of August 31, 2016Educational andGeneralDesignatedAuxiliary EnterprisesRestrictedExpendableASSETS AND DEFERRED OUTFLOWSCurrent Assets:Cash & Cash EquivalentsRestricted Cash & Cash EquivalentsBalance in State AppropriationsAccounts Receivable, Net:Federal (allow. 0.00 in 2016 & 0.00 in 2015)Other Intergov. (allow. 0.00 in 2016 & 0.00 in 2015)Patient & Healthcare(allow. 114,892,417.14 in 2016 & 24,786,876.55 in 2015)Interest and Dividend ReceivablesContributions (allow. 0.00 in 2016 & 0.00 in 2015)Other (allow. 641,990.97 in 2016 & 494,620.15 in 2015)Due From System AdministrationDue From Other InstitutionsDue From Other AgenciesInventoriesLoans & Contracts (allow. 41,379.88 in 2016 & 38,384.79 in 2015)Other Current Assets al Current 20.5667,264.86121,993,558.59Noncurrent Assets:Cash and Cash Equivalents (Noncurrent Restricted)Restricted InvestmentsLoans & Contracts (allow. 199,357.67 in 2016 & 217,514.93 in 2015)Funds Held by System Administration (Restricted)Contributions Rec. (allow. 0.00 in 2016 & 0.00 in 2015)Unrestricted InvestmentsOther Noncurrent AssetsGross Capital/Intangible AssetsAccumulated Depreciation/AmortizationTotal Noncurrent 215,312.478,841,377.59489,865,682.60Total 1,859,241.19Total Assets and Deferred 277,459,073.74LIABILITIES 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 2,298,825.61125,746.21Total 63,020,238.21Total Liabilities and Deferred 792,274.00Total Current LiabilitiesNoncurrent Liabilities:Employees' Compensable LeaveNotes, Loans, and Leases PayableOther Noncurrent Liabilities1,659,303.31Total Noncurrent LiabilitiesNET POSITIONNet Investment in Capital AssetsRestricted for:NonexpendablePermanent Health, True Endowments, and AnnuitiesExpendableCapital ProjectsFunds Functioning as Endowment (Restricted)Other ExpendableUnrestrictedTotal Net Position63,020,238.21 548,839,002.98548,839,002.98
3Loan FundsEndowment and SimilarEndowment andFunds - StateSimilar Funds - Other Unexpended PlantPermanent Health FundThan StateFundsInvestment in PlantAgency t YearTotalsPrior ,292.49
4The University of Texas Southwestern Medical CenterExhibit B Statement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended August 31, 2016Educational ExpendableLoan FundsOperating Revenues:Student Tuition and Fees Discounts and 3,028.20)(742,304.88)(477,209.74)Federal Sponsored ProgramsFederal Sponsored Programs Pass-Through from State Agencies57,793,849.79State Sponsored Programs Pass-Through from State Agencies729,161.59Local Sponsored ProgramsPrivate Sponsored ProgramsSales and Services of Educational ActivitiesSales and Services of 36,318.29Discounts and Allowances Sales and Services of Hospitals(1,555,007,033.19)Professional Fees (Patient Charges)1,768,381,868.19Discounts and Allowances Professional Fees (Patient Charges)(1,204,452,882.21)Auxiliary Enterprises27,315,234.47Other Operating RevenuesTotal Operating 01,363.43ResearchPublic 23.74231,990,754.18152,823.74Operating Expenses:852,704.66Hospitals / ClinicsAcademic Support7,368,910.39Student nal tions and Maintenance of 1,747,697.53Scholarships and FellowshipsAuxiliary EnterprisesDepreciation and AmortizationTotal Operating ExpensesOperating Income 4,183,638.6475,665.21Nonoperating Revenues (Expenses):State Appropriations187,096,262.66Federal Nonexchange Sponsored ProgramsFederal Nonexchange Pass-ThroughState Nonexchange Pass-ThroughGift Contributions for Operations63,159.00Investment Income54,390.97Net Increase (Decrease) in Fair Value of InvestmentsGain (Loss) on Sale of Capital Assets99,030,101.41Other Nonoperating RevenuesOther Nonoperating (Expenses)Net Nonoperating Revenues (Expenses)Income/(Loss) Before Other Revenue, Expenses, Gains/(Losses), andTransfersGifts and Sponsored Programs for Capital Acquisitions4,993,738.59Additions to Permanent Endowments / Annuities2,648,599.33Reclass from/(to) Other InstitutionsCapital Asset Purchases(370,418.82)Transactions Between 58.11Transfers Between Institutions & System, Debt Service - MandatoryTransfers Between Institutions & System Admin. - Non mandatory(12,333,563.00)Transfers From Other State ,831,033.2712,121.00Transfers to Other State AgenciesLegislative Appropriations Lapsed(32.14)Transfers Between FundsChange in Net PositionBeginning Net PositionRestatementsBeginning Net Position (As Restated)Ending Net 944,216,924.16 41
5Endowment andSimilar Funds State PermanentHealth FundEndowment andSimilar Funds Other Than StateUnexpended PlantFundsInvestment in PlantCurrent YearTotalsPrior .79(1,555,007,033.19) (1,204,452,882.21) 22,010,052,292.494,860,470,137.324,507,610,377.29
6The University of Texas Southwestern Medical CenterExhibit C - Statement of Cash FlowsFor the Year Ended August 31, 2016Current 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 ActivitiesPrior Year ,291,227.85)269,315,157.50Cash 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 0,137,021.28)(294,747,532.46)Cash 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 ,186.99)85,068,581.96Net Increase (Decrease) in CashCash and Cash Equivalents (Beginning of the Year)Cash and Cash Equivalents (End of the Year)(5,985,896.10)125,856,138.58 119,870,242.48(3,889,952.88)129,746,091.46 3,845.60102,380,041.81 (36,224,249.42) 7(138,296,988.92)(3,806,251.04)Cash 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 ActivitiesReconciliation 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 Transactions
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, 2016OperatingBudgetOPERATING 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 .47134,391,369.172,386,207,040.63OPERATING EXPENSES:InstructionResearchPublic ServiceHospitals / ClinicsAcademic SupportStudent ServicesInstitutional SupportOperations and Maintenance of PlantScholarships and FellowshipsAuxiliary EnterprisesDepreciation and AmortizationTotal Operating 60162,517,966.022,547,958,771.02Operating Income ,521.8266,141,030.00347,498,555.77NONOPERATING 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 Fund-Total Cash and Cash Equivalents (Exhibit A)Reimbursements due from State .75101,172,518.11-Subtotal Cash Equivalent Investments68,370,611.7565,030.00Money Market Funds-Time Deposits2,317,862.21------Repurchase Agreements - Texas Treasury Safekeeping Trust Co.-US Treasury Bills and NotesCash Equivalent Investments (Intent)7,204,200.14-Departmental Suspense FundSubtotal Cash in State Treasury-Direct Deposit of Bills - Holding Account Fund-2,317,862.21-7,204,200.14-Permanent Health Fund--12,417,830.4612,417,830.46-Local Revenue Fund--ROI Fund 0Permanent 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 -254,151.50-254,151.50Current Year 5,721.85Prior Year Total10
-7,904,427.64Investment FundsOther InvestmentsTotal Investments and Securities Lending Collateral (Exhibit A)Securities Lending CollateralTotal Investments (Exhibit A)Investment Derivatives - Asset Positions-Physical 30.24839,164,785.5626,955,285.00----Mineral Rights and Other .971,028,207,134.27RestrictedPUF Investment - Other-1.00-2,798,643.03828,461,713.89Real Estate Real Estate Mortgages and Other NotesStocksBonds and Preferred StockFunds 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, 1,028,207,134.27Current Year 6974,260,951.34Prior Year Total11
Optional Retirement Program Matching15-VariousState Pass through GrantsTotal General Revenue AppropriationsRetirement PlansUnemployment Compensation InsuranceMatching Portion of Staff Benefits Paid by StateMatching Portion of Staff Benefits Paid by StateRetirement PlansMatching Portion of Staff Benefits Paid by StateState Pass through .00Optional Retirement Program CESSept. 1, 2015AppropriationsSocial Security MatchingGroup InsuranceEducational and General State SupportHS.B. 1, 84th Legislature, Regular Session FY16Matching Portion of Staff Benefits Paid by StateRetirement PlansMatching Portion of Staff Benefits Paid by State15-9114215-97646Social Security MatchingOptional Retire
The University of Texas Southwestern Medical Center for the year ended August 31, 2016. These Statements and detailed supportive schedules have been prepared in compliance with applicable State statutes, Governmental Accounting Standards Board pronouncements, and the Texas Comptroller of Public Accounts' Annual Financial Reporting Requirements.
