Yale University
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Yale University Office ofthe General Counsel PO Box 208255 RECEIVED New Haven CT 06520-8255 REGION 1 T 203432-4949 F 203432-7960 courier 2 Whitney Avenue, 6th floor "~1It.-'./it 28 AM 10: 34 October 26, 2011 New Haven CT 06510 Steven Courtemanche USNRC Region 1 475 Allendale Road King of Prussia, PA 19406-1415 Docket No. 03000582 License No. 06-00183-03 Re: Self-Guarantee of Certain Obligations under 10 CFR Part 30 Dear Mr. Courtemanche: Please find enclosed a letter from Yale's Vice President for Finance and Business Operations confirming Yale's continued satisfaction ofthe requirements to self-guarantee certain potential obligations under 10 CFR Part 30 on the basis ofits net assets and the continued "AAA" rating of its most recently issued tax-exempt debt. Also enclosed is a letter from Yale's outside auditors, PricewaterhouseCoopers LLP, confirming the Vice President's representation as to the University'S net assets. For your infonnation, I am also enclosing a copy ofthe audited financial statements of Yale University for the year ending June 30, 2011, which form the basis of the Vice President's representations and PricewaterhouseCoopers LLP's confirmation. Please call me with any questions or additional instructions. ~~;M~ Kenneth Miller Associate General Counsel Attachments Re: Peter Reinhardt Tammy Stemen Bob Herr Deborah Chung Stephanie Chan Colin Sullivan P:/users/mili/ken/mac legacylinvestments/equities/capital marketslYalc_20 II_NRC_Compliance Update. doc 5"7~!;.77 NMSSlRGN1 MATERIALS-002 Yale FINANCE AND BUSINESS OPERATIONS SHAUNA KING Vice Presidentfor Finance and Business Operations PO Box 208304 October 26, 2011 New Haven CT 06520-8304 T 203 432-1094 F 203432-0130 [email protected] U.S. Nuclear Regulatory Commission couner Region 1 25 Science Park, 6th Floor, Room 610 475 Allendale Road New Haven CT 06511 King ofPtussia, Pennsylvania 19406-1415 Attention: Steven Courtemanche, Health Physicist Nuclear Materials Safety Branch 1, Division of Nuclear Materials Safety Re: Yale University (License No. 06-00183-03 - Self-Guarantee under 10 CFR Part 30 (Appendix E). Ladies and Gentlemen: I am the Vice President for Finance and Business Operations ofYale University, a nonstock corporation specially chartered by the General Assembly of the Colony and State of Connecticut. Yale University is a private, not-for-profit university, whose tax-exempt status is recognized by the IRS determination letter attached hereto. This letter is in support of the University's use ofthe self-guarantee financial test to demonstrate financial assurance, as specified in 10 CFR Part 30. The University has no parent company holding majority control of its voting stock. The University guarantees, through the self·guarantee submitted to demonstrate compliance under 10 CFR Part 30, the decommissioning ofthe following facilities owned or operated by the University. The current cost estimates or certified amounts for decommissioning, so guaranteed, are shown for each facility: Name of License Location of Certified Amounts or Facility Number Facility Current Cost Estimates Yale University 06-00183-03 New Haven, CTI $1,125,000 campus (Broadscope West Haven-Orange, CTI License) 34 Park St., New Haven, CT Yale University 06-00183-08 Positron Emission Tomography $225,000 campus (PET Accelerator Center Production 801 Howard A venue License) New Haven, CT 06520-8048 I hereby certify that Yale University is currently a going concern, and that it possesses positive net assets in the amount of no less than $20.9 billion at June 30,2011. The calculation ofthe University's net assets at June 30, 2011 is derived from the University's independently NONNEGOTIABLE U.S. Nuclear Regulatory Commission Region 1 October 26, 2011 Page 2 audited, year-end financial statements and footnotes for the latest competed fiscal year ended June 30, 2011. A copy ofthe University's most recent financial statements is enclosed. The University is not required to file a Form 10-K with the U.S. Securities and Exchange Commission for the latest fiscal year. The University satisfies the following self-!:,TUarantee test. (a) A current rating for its most recent uninsured, uncollateralized, and unencumbered bond issuance of AAA, AA, or A as issued by Standard & Poor's or Aaa, Aa, or A as issued by Moody's. YALE BOND ISSUANCE CREDIT RATINGS Series Amount Moody's !S&P i Date of i Date of Rating "A" or Rating Rating i Issuance Maturity better? I --.. , 2-1 $400 million Aaa . AAA 09/13/07 07/01142 . Yes 2-2 $100 million Aaa AAA 10/03/07 07/01142 Yes 2-3 $100 million Aaa AAA 10103/07 07/01142 Yes • 20JOA-I $79,975,000 Aaa AAA 02/24/2010 07/0112025 Yes 2010A-2 $150 million Aaa AAA 02/24/2010 07/01/2040 Yes 20 1OA-3 $150 million Aaa AAA 02/24/2010 07/0112049 Yes 2010A-4 $150 million Aaa AAA 02/24/2010 07/01/2049 Yes I hereby certify that the content ofthis letter is true and correct to the best ofmy knowledge. ~£) Sha~ Vice President for Finance and Business Operations October 26,2011 J. pwc Confirmation ofLetter from Vice President for Finance and Business Operations U.S. Nuclear Regulatory Commission Region 1 475 Allendale Road King of Prussia, PA 19406-1415 Attention: Mr. Steven Courtemanche Ladies and Gentlemen: We have audited the financial statements ofYale University (the "University") for the year ended June 30, 2011, and have issued our report thereon dated October 21,2011. Our examination was made in accordance with auditing standards generally accepted in the United States of America and, accordingly, included such tests ofthe accounting records and such other auditing procedures as we considered necessary. The University has prepared documents to demonstrate its financial responsibility under NRC's financial assurance regulations, 10 CFR Part 30. This letter is furnished to assist the licensee, Yale University, license No. 06-00183-03, in complying \"lith these regulations and should not be used for other purposes. The attached summary schedule of net assets (Schedule) reconciles the specified information furnished in the Vice President for Finance and Business Operations' (VP's) letter in response to the regulations with the University's financial statements. In connection therewith, we have: 1. Confirmed that the amount in the column "Per Financial Statements" agrees with amount reported in the University's audited financial statements for the year ended June 30, 2011; 2. Confirmed'that the amount in the column "Per VP's letter" agrees with the letter prepared in response to NRC's request; 3. Confirmed that there are no reconciling items. Because the procedures in 1-3 above do not constitute an audit performed in accordance with auditing standards generally accepted in the United States of America, we do not express an opinion on the schedule attached or the VP's letter. In connection with the procedures referred to above, no matters came to our attention that caused us to believe that the VP'g letter and supporting information should be adjusted. October 26, 2011 Yale University Summary Schedule of Net Assets Year ended June 30, 2011 TABLE OF CONTENTS Highlights. .. 1 Message from the Vice President for Finance and Business Operations ............... 2 Financial Results ............................... 3 Overview···································3 Operating Revenue ........................... 5 Operating Expenses .......................... 8 Physical Capital .............................. 9 Endowment ...............................• 10 Report ofIndependent Auditors .................. 13 Yale University Statement ofFinancial Position ...... 14 Yale University Statement ofActivities ............. 15 Yale University Statement ofCash Flows ........... 16 Yale University Notes to Financial Statements ....... 17 The President and Fellows ofYale University ........ 32 The Officers ofYale University. .. 32 Cover photography by Michael Marsland Highlights j1iscal years Five-Year Financial Overview 2011 2010 2008 Operating Bndget Bottom Line (see page 4) $ $ $ $ $ Financial Position Highlights (see page 14): Total assets $ 31,044.3 $ 27,296.1 $ 25,937.8 $ 33,864·8 $ 32,165.3 Total liabilities Total net assets $20,998.5 $ 17,54°·7 $ 17,394·5 $ 24,278.3 $ 24,085.8 Endowment: Net investments, at fair value $ 19,174·4 $16,504.2 $ 16,103.5 $ 22,686·3 $ 22,364.7 Total return on investments 21·9% 8·9% (24·6%) 4·5% 28.0% Spending from endowment 5·9% 6·9% 5.2% 3·8% 3.8% Facilities: Land, buildings and equipment, net ofaccumulated depreciation $ 4,109.8 $ 3,975·8 $ 3,715. 1 $ 3,199·6 $ 2,746.4 Disbursements for building projects 280·7 407. 1 599.6 568.9 373·3 Debt Statement ofActivity Highlights (see page 15) : Operating revenue $ 2,787·7 $ 2,725.8 $ 2,600·7 $ 2,347·5 $ 2,121.2 Operating expenses 2,684.0 2,572.1 2,493·5 2,314-5 2,108·5 Increase in net assets from operating activities $ 103.7 $ 153·7 $ 107. 2 $ 33.0 $ 12·7 Five-Year Enrollment Statistics 2011 2010 2008 Stndent Fees: Yale College term bill $ 49,800 $ 47,500 $ 46,000 $ 45,000 $ 43,050 Freshman Enrollment Class of: '14 '13 '12 '11 '10 Freshman applications 25,869 26,003 22,817 19,323 21,101 Freshmen admitted 2,039 1,958 1,952 1,911 1,878 Admissions rate 7·9% 7·5% 8.6% 9·9% 8·9% Freshman enrollment 1,344 1,307 1,320 1,320 1,315 Yield 67.0% 67.8% 68·7% 70.6% 7°·9% Total Enrollment: Yale College 5,296 5,268 5,266 5,300 5,319 Graduate and professional schools 6,321 6,252 6,107 6,064 6,004 Message from the Vice President for Finance and Business Operations Yale University's strong financial results for the 2011 fiscal year demonstrate that the University has successfully made the needed adjustments in response to the challenging financial environment.