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FSU Annual Report 02-03 Florida State University 2002—2003 ANNUAL REPORT “...a place where opportunities are open, and dreams come true.” President T.K. Wetherell FLORIDA CABINET Jeb Bush, Governor Charlie Crist, Attorney General, Tom Gallagher, Chief Financial Officer Charles H. Bronson, Commissioner of Agriculture STATE BOARD OF EDUCATION F. Philip Handy, Chairman Linda J. Eads, Ed.D. T. Willard Fair Charles Patrick Garcia Julia L. Johnson William “Bill” Proctor Jim Horne, Commissioner of Education FLORIDA BOARD OF GOVERNORS Carolyn K. Roberts, Chair John Dasburg, Vice Chair Pamela “Pam” Bilbrey Castell V. Bryant Miguel De Grandy Rolland Heiser Established by the Legislature in 1857 as the Seminary West of the Suwannee, Florida State University Jim Horne, Commissioner of Education is one of the oldest of the 11 public institutions of higher learning in the state of Florida. Its Tallahassee Sheila M. McDevitt campus has been the site of an institution of higher education longer than any other site in the state. Gerri Moll Lynn Pappas Ava L. Parker Table of Contents Howard Rock Peter S. Rummell Introduction from the Senior Vice Clayton Solomon 1. President for Finance and Administration John W. Temple Steven Uhlfelder Zachariah P. Zachariah 3. Message from the President FLORIDA STATE UNIVERSITY Florida State University Overview BOARD OF TRUSTEES 5. and Statistics John Thrasher, Chairman Jim Smith, Vice Chairman Dr. Valliere Richard Auzenne 8. Independent Auditor's Report Derrick Brooks Emily Fleming Duda David Ford 10 . Management’s Discussion and Analysis Dr. Jessie Furlow Manuel A. Garcia III William Andrew Haggard 15 . Statement of Net Assets Harold M. Knowles Dr. J. Stanley Marshall Statement of Revenues, Expenses and Dr. E. Ann McGee 16 . Changes in Net Assets Patrick Sullivan, President, FSU Student Body EXECUTIVE OFFICERS 17 . Statement of Cash Flows Dr. Thomas Kent “T.K.” Wetherell, President Dr. Lawrence G. Abele, Provost and Executive Vice President for Academic Affairs 18 . Notes to the Financial Statements John R. Carnaghi, Senior Vice President for Finance and Administration Dr. Kirby Kemper, Vice President for Research Financial Aid Administered Dr. Mary Coburn, Vice President for Student Affairs 36. Lee Hinkle, Vice President for University Relations PRINCIPAL FINANCE AND On the cover: from top to bottom; The University ACCOUNTING OFFICIALS Center; The University Philharmonia; Graduation Larry D. Reese, Associate Vice President day; Cá d’ Zan on Sarasota Bay; Students relaxing for Finance and Controller at the Owen Sellers Amphitheatre; Eminent Perry Crowell, Executive Director, Financial Services Scholar and Marine Biologist Nancy Marcus. G. Tom Harrison, Senior Associate Controller Michael Williams, Associate Controller Florida State University Annual Report Introduction from the Senior Vice President for Finance and Administration hat this university continues to present and operate at maximum efficiency, future needs. Friends of the university despite continuing growth and Projects continue to demonstrate decreasing legislative allocations, is completed their support and fervent Tbut a reflection of the commitment during 2002- belief in our future through to excellence of its faculty, staff, 2003 generous giving. “FSU and students. included the CONNECT—the Campaign Our total Education and General Sherrill for Florida State University,” operating budget (excluding the College of Ragans achieved 68 percent of its Medicine) rose from approximately $351 Residence $600 million goal, or $406.2 million, by the end million during the 2001-2002 fiscal year to Hall; Parking of the 2002-2003 fiscal year. $369 million during the 2002-2003 fiscal Garage II, the year. Although these figures represent a renovation of welcome overall increase, the Williams John R. Carnaghi one must note that General Building; Revenue allocations from and the Woodward Avenue Pedestrian Mall. the Florida Legislature, the Throughout the fiscal year, major largest single revenue construction projects in progress included source of our operating the new College of Medicine, Alumni budget, continued to Center, Communications and decrease during this two- Intercollegiate Athletics facility, and year period. Nevertheless, renovation of Montgomery Gymnasium. the university remains We continue to do more without creating consistently challenged to undue financial hardships upon our students meet its mission in light of and their families. Although tuition was significant growth in all modestly raised during the past fiscal year, areas. For example, our Florida’s public universities remain one of the student body grew by premiere “bargains” in the United States, approximately three ranking 49th among the 50 states in the cost percent from 35,462 to of tuition for the high-quality education we 36,683. Concomitant with offer. this growth in enrollment However, as President T. K. Wetherell was the growth in the recently noted, the old funding paradigm of number of full-time faculty legislative appropriations and tuition will not members—2,043 to suffice if this university is to achieve its vision 2,119—and the addition of of excellence. significant new programs What we have done and continue to do is and major fields of studies. outperform ourselves. For example, within Some of the more notable the Division of Finance and Administration, new major offerings include several departments, i.e., Environmental FSU’s student body grew by approximately three percent from Biomedical Mathematics at Health and Safety, Human Resources, and the 35,462 to 36,683 in fall semester the Bachelors level; Global Manufacturing at Tax Section of the Controller’s Office, 2002-2003. the Masters level; and Financial Mathematics underwent external reviews during 2002- at the Doctorate level. 2003 to ensure that we not only meet or The university’s physical plant continued exceed our own standards, but, moreover, to grow and improve in order to meet both those of our peers! Likewise, to ensure that 1 Florida State University Annual Report “we plan our work and work our plan,” the To better coordinate and accomplish our division’s Strategic Vision: 2001-2006 was financial and operational activities, the reviewed in detail to ensure that we are university made great progress toward making progress towards the many goals we set for ourselves. The progress made by Finance and Administration during 2002-2003 is paralleled by the performance of other university divisions. Florida State University remains on the cutting edge of critical research that touches the lives of all Americans. 2002-2003 witnessed the inauguration of a new, multi-year grant program from the Department of the Navy to develop a new, all-electric power system for our warships. A total of $161 million in grants was awarded to Florida State University researchers during 2002-2003—a significant increase over the $147 million awarded FSU spent nearly $24 million in 2002-03 on student services that during 2001-2002. included academic enrichment, recreation, student health care and The past fiscal year also witnessed the community service. cohesive efforts of all university faculty and staff to reassert our collective excellence completing Project AIM (Active Integrated through the 10-year accreditation of the Management). Through our contract with institution by the Southern Association of PeopleSoft, new software systems are being Colleges and Schools (SACS). Although the developed and implemented to provide a accreditation process will not be completed “seamless” system for storing, accessing, for another year, the preliminary review, manipulating, and reporting myriad data conducted during 2002-2003, indicated that pertaining to all our financial and human the university met or exceeded national resource operations. Training, standards in areas including budgeting, demonstrations, and fine-tuning continued financial reporting, facilities, safety, student throughout the past fiscal year, and we fully services, governance, faculty qualifications expect the financial component of Project and achievements, and academics. AIM to be operational by July 2004, while the human resources component will be operational by January 2005. Finally, we owe great thanks to President Dr. T. K. Wetherell and the members of our Board of Trustees for their continuing support and belief in what we do at Florida State University. Without their guidance and leadership, we could never have accomplished all that we did during the 2002-2003 fiscal year. The university has 27 disciplines ranked in the top 25 among public institutions and has 18 disciplines ranked in the top 25 among all colleges in the U.S. Florida State University Annual Report 2 Message from the President of Florida State University little over a year ago, Sandy D’Alemberte stood before the FSU faculty for the last time as President and outlined the state of the A university as he saw it at the end of his nine-year tenure. His summary at the time: “Florida State University is now at a tipping point in its history—on the very edge of entering the ranks of the great research universities in this country.” Sandy’s years in office were characterized by growth—growth Thomas Kent “T.K.” Wetherell in the state and growth for Florida State University. The state’s mindset was that So, it is important that you know where I universities were important academic, think this university will be in five years. For cultural and economic engines in both me, in five years, I see an FSU that has set the Florida and the nation. State funding was tone for higher education to be required available to match that mindset. rather than denied. With national budget woes, the passage of I see an FSU that has a fully accredited the class-size and Board of Governors College of Medicine and that has been re- amendments in Florida, as well as other economic difficulties, higher-education funding in this state is in far worse condition than during Sandy’s years of service. “I see an FSU that has set the Quite frankly, the state university system in tone for higher education to be this state is in peril. We have no choice but to required rather than denied.” deal with this peril.
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