Cornell University 2011-2012 Annual Report - DFA Home - Cornell ...

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)D. Lines of CreditThe University records the working capital lines of credit activity and outstanding balances as other liabilities in the consolidatedstatement of financial position. The two $100 million lines of credit have annual expiration dates of December31 and April 1. As of June 30, 2012 and 2011, the University did not borrow against the lines of credit.9. OPERATING LEASESAlthough the University generally purchases, rather than leases, machinery and equipment, the University does enteroperating lease agreements for the use of real property. Total lease expenses were $27,218 and $26,249 for the fiscal yearsending June 30, 2012 and 2011, respectively. The future annual minimum lease payments in the following table are paymentsunder operating leases expiring at various dates through September 1, 2043.ANNUAL MINIMUM OPERATING LEASE PAYMENTSYearPayments2013 $ 26,9992014 24,7132015 22,5202016 18,9742017 18,366Thereafter 130,817Total minimum operating lease payments $ 242,38910. FUNCTIONAL EXPENSES AND STUDENT AIDTotal expenses by functional categories for the fiscal years ending June 30 are as follows:FUNCTIONAL EXPENSES2012 2011Instruction $ 661,762 $ 652,651Research 561,727 593,005Public service 115,328 109,479Academic support 275,293 261,856Student services 140,295 126,104Medical services 761,708 649,746Institutional support 388,021 371,733Enterprises and subsidiaries 211,060 210,119Total expenses $ 3,115,194 $ 2,974,693The expenses for operations and maintenance of facilities, depreciation, and interest related to capital projects are allocatedto functional categories based on square footage. The amounts allocated for operations and maintenance were approximately$231,157 and $216,291 for the fiscal years ending June 30, 2012 and 2011, respectively.Student financial assistance is shown as a component of instruction expense unless the assistance is for tuition andmandatory fees. If the assistance is for tuition and mandatory fees, the amounts are recorded as scholarship allowance whichreduces tuition revenue. Total financial assistance amounts classified as instruction expense were $42,699 and $41,851 forthe fiscal years ending June 30, 2012 and 2011, respectively.34
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)11. NET ASSETSA. General InformationThe University’s net assets as of June 30 are as follows:SUMMARY OF NET ASSETSUnrestrictedTemporarilyrestrictedPermanentlyrestrictedEndowmentTrue endowment $ (50,572) $ 1,243,182 $ 2,027,374 $ 3,219,984 $ 3,274,626Funds functioning as endowment (FFE) 1,252,053 327,277 - 1,579,330 1,653,444Total true endowment and FFE $ 1,201,481 $ 1,570,459 $ 2,027,374 $ 4,799,314 $ 4,928,070Funds held by others, perpetual - - 147,640 147,640 131,336Total University endowment $ 1,201,481 $ 1,570,459 $ 2,175,014 $ 4,946,954 $ 5,059,4062012Total2011TotalOther net assetsOperations (683,955) 216,100 - (467,855) (173,664)Student loans 12,569 - 38,052 50,621 49,342Facilities and equipment 1,879,457 50,496 - 1,929,953 1,814,070Split interest agreements - 61,357 34,889 96,246 104,892Funds held by others, other than perpetual - 40,340 17,952 58,292 72,466Contributions receivable, net - 677,603 185,856 863,459 584,483Total net assets $ 2,409,552 $ 2,616,355 $ 2,451,763 $ 7,477,670 $ 7,510,995Unrestricted net asset balances for operations are primarily affected by operating activities and strategic decisions to investexpendable balances in funds functioning as endowment and capital projects.B. EndowmentOf the endowment assets held at the University, 96 percent was invested in the LTIP at both June 30, 2012 and June 30, 2011.At June 30, 2012, 1,561 of 6,259 true endowment funds invested in the LTIP had a total historic dollar value of $638,885and a fair value of $588,313, resulting in these endowments being underwater by a total of $50,572. The University holdssignificant appreciation on endowments to offset these temporary decreases in value. The University has maintained thesetrue endowment funds at their historical book value.Changes in the endowment net assets, exclusive of funds held in trust by others, for the fiscal years ending June 30 arepresented below:SUMMARY OF ENDOWMENT ACTIVITYUnrestrictedTemporarilyrestrictedPermanentlyrestricted2012Total2011TotalTrue endowment and FFE, beginning of year $ 1,295,196 $ 1,727,904 $ 1,904,970 $ 4,928,070 $ 4,259,950Investment returnNet investment income 17,539 41,317 - 58,856 42,978Net realized and unrealized gain/(loss) (31,215) (36,346) (518) (68,079) 691,584Total investment return $ (13,676) $ 4,971 $ (518) $ (9,223) $ 734,562New gifts 3,327 11,788 92,277 107,392 111,258Amounts appropriated for expenditure/reinvestment (68,099) (170,171) 3,654 (234,616) (173,114)Other changes and reclassifications (15,267) (4,033) 26,991 7,691 (4,586)Total true endowment and FFE, end of year $ 1,201,481 $ 1,570,459 $ 2,027,374 $ 4,799,314 $ 4,928,07035
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CORNELL UNIVERSITY HIGHLIGHTS2011-1
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8Annual Report 2011-2012
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FROM TOP TO BOTTOM: Taio Cruz perfo
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Cornell Administration:FY12 Updates
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FROM TOP TO BOTTOM: Minns Garden in
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esidents of Owego, New York, who we
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Page 34: nearly three years early, according
Page 37 and 38: Following the announcement, the top
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Page 42: ResearchResearchers connect geneto
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Page 47 and 48: Stewards program to train students
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