FINANCIAL REPORT TO MANAGEMENT

SEPTEMBER 2007

Michelle Aguilar Associate Director of Financial Accounting Finance Office (518) 434-7025 Financial Report to Management

INDEX A Financial Monitoring i Executive Summary ii-x Notes to Management

B Balance Sheet Activity Assets 1 Accounts Receivable 2 Advances to Others 3 Investments Portfolio

Liabilities 4 Deferred Revenue 5 Deposits Held for Others 6 Fringe Benefits 7 Corporate Debt

C Statement of Activities Revenues 8 Sponsored Program Revenue Charts 9 Sponsored Program Revenue by Type Chart 10 Corporate Activity/Revenue Expenditures 11 Sponsored and Corporate Expenditure Category by Activity Type and NACUBO Chart 12 Salary Expenditures by Pool Chart

D Working Capital 13 Total Net Cash Position by Location 14 IFR Payments

E 990 Activity 15 Agency Revenue Charts 16 Agency Expenditure Category by Activity Type and Campus

Monthly Management Report September 2007 10/16/2007 Executive Summary Financial Report to Management

- Sponsored Program direct and indirect revenues increased 3% each compared to the same period last year. (Refer to Sponsored Program Revenue Charts on page 8.)

- Agency Service Fees (2%) decrease compared to last year while F&A revenue (3%) increased compared to the same period last year. Royalty revenue also increased $7 million as the result of receiving funds on a new license. (Refer to Corporate Activity/Revenue Charts on page 10.)

- Although September investment data is not available at this time, early indications continue to show modest gains through September in the Operational (2%) and Retiree Health (1%) pools. (Refer to Investment Portfolio Charts on page 3.)

- Fringe Benefit costs are $2.3 million less than the fringe benefit charges to the grants. (Refer to Fringe Benefit Chart on page 6.)

Monthly Management Report September 2007 i 10/16/2007

Notes to Management

Central Office Budget Update As of the month ending September 2007, there is approximately $3.1m available in the CO budget:

Award 43434 Total Salary Total OTPS Functional Organization Budget Total Committed* Available* Available Total Available Executive 4,118,182 3,553,249 47,785** 537,147 584,932 Research 3,340,379 2,742,308 483,914 114,157 598,071 Administration and Human Resources 4,605,756 4,013,909 120,123 471,725 591,847 Information Services 8,938,011 7,940,683 95,582 901,747 997,328 Finance 2,803,324 2,586,238 62,241 154,845 217,086 Audit 1,201,348 1,004,092 152,609 44,648 197,256 Total 25,007,000 21,820,479 962,254 2,224,268 3,186,521

*The “Total Committed” includes shortages. The “Total Salary Available” is less shortages. **A shortage in the amount of $48,287 currently exists and is being addressed.

The total central office (CO) budget was increased by $125,000 for funds received from The Research Foundation of Mental Hygiene. These funds were added to the CO contingency budget, under the executive function.

Reminders: • Account activity can be reviewed on a regular basis using the web-based CO Budget Report. • A complete list of the FY08 central office budget account numbers is located in the following directory: R:\Secretarial Support\FY08 CO Budget PTAs\FY08 CO Budget Projects-FINAL. • Monthly Task Summary Reports (MTSs) are distributed monthly and should be reviewed to ensure that the activity being charged to your accounts is appropriately classified (correct expenditure type is used) and the charges are reasonable, allocable and allowable. Note: You can run these reports on demand from the grants module of Oracle business system. See Monthly Task Summary (MTS) Report for details.

Questions: • Account administration questions and budget changes requests should be directed to Ramona Martin, x7164. • Specific budget related issues should be directed to Dave Martin, x7033.

Monthly Management Report September 2007 ii 10/16/2007

Notes to Management

Central Office Allocation Reserve Update As of the month ending September 2007, there is approximately $1m available in the CO reserve:

Award 000890 Task Name Project Task Budget Expenditures Commitments Available Building Reserve 1056492 1 409,166 16,250 - 392,916 Operating Reserve 1056492 2 343,618 151,923 10,259 181,437 Information Technology Reserve 1056492 3 137,016 - - 137,016 Legal Reserve 1056492 4 342,193 - - 342,193 Total 1,231,993 168,173 10,259 1,053,562 *Commitment represents Spencer Stuart agreement that was approved to be paid from the CO reserve.

In general, the reserve funds are only to be used to cover necessary costs not considered normal operations. These reserves are to fund costs incurred for emergencies and other unanticipated circumstances.

In FY 2007, central office began to use these funds. See R:\Secretarial Support\CO Reverse Procedure for specific procedures.

Monthly Management Report September 2007 iii 10/16/2007

Notes to Management

Oracle Budget Update As of the month ending September 2007, there is approximately $502k available in the Oracle budget:

Award 38960 Task Name Project Task Budget Actual Encumbrances Total Available Oracle 11i HR 1053677 1 81,196 81,196 - - Oracle Salary Cont 1053680 1 129,312 127,080 - 2,232 Oracle 11 TechWriter 1058702 1 57,857 57,857 - - Total Salary and Fringe 268,365 266,132 - 2,232

Oracle 11i Consult 1053620 1 2,452,541 2,358,850 - 93,691 Oracle 11i Software 1053620 2 166,138 166,138 - - Internal Audit/11i 1053620 3 310,000 287,000 23,000 - Oracle 11i Equipment 1053621 1 2,133,845 1,671,567 55,962 406,315 Oracle 11i Software 1053625 1 - - - - Oracle 11i Misc 1053626 1 20,752 20,752 - - Oracle 11i Training 1053641 1 23,833 23,833 - - Oracle 11i Finance 1053674 1 - - - - Oracle 11i Travel 1058701 1 14,526 14,526 - - Total OTPS 5,121,635 4,542,666 78,962 500,006

Total 5,390,000 4,808,798 78,962 502,239

+This budget represents the total budget that was authorized by the board for the fiscal years 2006, 2007 and 2008.

Monthly Management Report September 2007 iv 10/16/2007

Notes to Management

Balance Sheet Cash & cash equivalents Sponsored Program net cash position has dropped $76 million from last September 2006. We are experiencing an increase in deficits amounts of $33 million and a decrease in surplus amounts of $43 million. The decrease in cash could impact future investment income distribution to the campuses and the funding to the corporate reserves.

Accounts Receivable Sponsored program deficits increased 36% ($33 million) from last September largely due to NYS sponsors. The campuses with the largest increases are University at Albany ($7 million), ($5 million), ($2 million), ($6 million), and Sys Admin. – Provost ($14 million). The campus with the largest decrease was ($3 million) (Refer to Accounts Receivable Charts on page 1.) • Sponsors with the largest increases are: NYS Auth and Pub Ben Corp ($7 million), NYS Department of Health ($8 million) and Other NYS Agencies ($10 million). • University at Albany and Stony Brook University are currently having a problem with receiving timely payments from ESDC and the campuses are currently owed approximately $4 million and $3 million respectively. • “At Risk” awards increased 5% from last September primarily due to NYS sponsors.

Accounts Receivable by Sponsor Federal sponsor deficit balances increased 16%, Multiple Sponsor balances increased 19%, Federal Flow Through balances increased 36%, State balances increased 57% and “Other” balances increased 36% compared to the same period last year. Note: “Other” includes Colleges and Universities (19% increase), Foreign (1% decrease), Non-Sponsored (40% increase), Private (52% increase) and Other State and Local (2% increase). Advances to Others Agency deficit balances increased 23% compared to the same period last year while “At Risk” balances decreased 4%. Clinical Practice Plan and Staffing Services deficits increased 61% and 26% respectively while Other Agency deficits decreased 32% compared to last year. (Refer to Advances to Others Charts on page 2.)

Deferred Revenue Sponsored program surplus balances in total decreased 32% ($48 million) compared to the same period last year. The campuses with the largest decreases were: (Refer to Deferred Revenue Charts on page 4.) • University at Albany ($42 million) and is related to nanoelectronic activity • Stony Brook University ($7 million) and is related to a change in award coding on one large award to non sponsored income. The campuses with the largest increases were University at Buffalo ($1 million) and Sys Admin. – Provost ($2 million).

Monthly Management Report September 2007 v 10/16/2007

Notes to Management

Balance Sheet (continued) Deferred Revenue by Sponsor Sponsored surplus balances decreased in “Other” ($7 million), Multiple ($6 million), and State ($31 million) compared to last year. Note: “Other” surplus balances include Colleges and Universities (51% increase), Foreign (28% decrease), Non-Sponsored (52% increase), Private (12% decrease) and Other State and Local (49% increase). For this year’s financial statement audit PwC looked at deferred revenue on multiple sponsored awards, particularly those coded as ‘miscellaneous support’ and ‘balance’. They are particularly concerned with the revenue recognition on these awards. As of September 2007, the surplus balance on these ‘miscellaneous support’ and ‘balance’ awards was $13 million and $15 million respectively.

Deposits Held for Others Agency surplus balances increased 7% compared to the same period last year. Surplus balances at Stony Brook University increased 6% and Upstate Medical Center increased 12%. (Refer to Deposits Held for Others Charts on page 5.)

Statement of Activities Direct and Indirect Revenue Direct and indirect revenues each increased 3% compared to the same period last year. During July, Levin Institute awards were transferred to University at Albany and Sys. Admin – Provost therefore skewing comparisons to last year. • The campuses with the largest increases in direct revenues were: University at Buffalo (4%), Stony Brook University (26%), and Buffalo State College (26%). The campuses with the largest decreases in direct revenue were: University at Albany (8%), Upstate Medical University (10%), Levin Institute (91%) and Sys. Admin – Provost (6%).

• The campuses with the largest increases in indirect revenues are: University at Albany (15%), University at Buffalo (6%), Buffalo State College (22%) and Sys. Admin – Provost (17%). The campus with the largest decrease is Levin Institute as a result of transferring their activity to University at Albany (105%). (Refer to Sponsored Program Revenue Charts on page 8.) Revenue by Sponsor State revenues decreased 22% while Federal (2%), Industry & Other (28%) and Federal Flow Through (8%) revenues each increased compared to the same period last year. Federal Flow Through includes $34 million and $30 million of NYS activity in September 2007 and 2006 respectively. (Refer to Sponsored Program Revenue by Type Chart on page 9.)

Monthly Management Report September 2007 vi 10/16/2007

Notes to Management

Statement of Activities (continued) S & F Accounts Effective July 1, 2006 campuses were required to establish a Third-party Recharge award when outside parties utilize the services of an RF service center. This is necessary for proper accounting and reporting of revenue and costs related to third-party use of RF service centers. As of September 2007 the following campus has not used the new process and is still applying cash to their Service and Facility awards: • Upstate Medical Center - $2,218

For this year’s financial statement audit PwC looked at deferred revenue on S&F awards. They were particularly concerned with the monitoring of surplus and deficit balances on S&F awards. As of September 2007, the surplus balance on S&F awards is $12.4 million and the deficit balance is $3.5 million.

Working Capital Corporate Five campuses have overall deficit balances in their corporate awards as of September 2007. The applicable campuses and their related deficit balances are as follows: (Refer to Total Net Cash Position by Location Table on page 13) • Farmingdale State College - $355,548 • Delhi - $9,671 • Cobleskill - $51,734 • Alfred - $17,766 • New Paltz - $23,307

University at Albany is on a payback plan for shortages of actual revenue earned compared to estimated allocations made for FY 2006 and FY 2007. Each debt is on a three-year repayment plan. • FY06 shortfall of $853,010 will be paid by FY09 • FY07 shortfall of $834,892 will be paid by FY10

990 Activity Agency Revenue Agency revenues increased 15% for direct while indirect agency revenue decreased 2% over the same period in fiscal 2007. University at Buffalo revenue increased 126% compared to last year due to increases in Other Agency and Staffing Services activity (Refer to Agency Revenue Chart on page 15.)

Agency Fund IFR There is one award (31276) at Upstate Medical Center that has IFR activity in the agency fund for a total of $122,056. A team is looking at the appropriateness of this activity in agency accounts.

Monthly Management Report September 2007 vii 10/16/2007

Notes to Management

Affiliated Organizations • Source Sentinel, LLC – reported a loss for FY 2006 of $1,055,292 of which the RFs share has been reported as $263,823. Per the operating agreement, the RFs contribution consists of intellectual property only and it was intended that the RF not to be liable for any debts or obligations of the entity. The historical methodology of accounting for capital contributions was changed in 2006 by the accountants for Source Sentinel, LLC. with no authorization for the change documented. The resulting loss is based on this arbitrary assignment of capital which is not correct. OCGS is currently investigating the relevant facts in this matter. • Central Biotechnology Research Corporation – CNYBRC is looking to purchase a building for operating space near the campus in the near future. The RF has agreed to assist in the purchase and provide necessary short term funding if required. • BioBat, Inc. – Staffing and fiscal services agreements have been executed between BioBAT and the RF. A service agreement between the RF, SUNY Construction Fund and BioBAT is in process and is anticipated to be executed shortly. Once completed, the RF anticipates receipt of a significant portion of the $36 million allocated for the build out of the BioBAT facility. No advances have been received by the RF as of September 30, 2007. • University at Albany Biosciences Development Corporation - A staffing and fiscal services agreement between UABDC and the RF has been drafted and is being reviewed by UABDC at this time. Single Member organizations that require consolidation: • State Street Management, Inc. – SSMI has liquidated its assets and the buildings were transferred to New York State on behalf of SUNY. Dissolution of the entity is expected in early FY 2008. • Binghamton Technologies Corporation – No Activity • Nano Tech Resources, Inc. – No Activity • NY Maritime College Sailing Foundation – No activity • Purchase College Advancement Corp. – Very minor amount of agency expenditures on RF system which are not expected to continue past early FY 2008 • SUNY China Representative Office – No Activity

Monthly Management Report September 2007 viii 10/16/2007

Notes to Management

Continuous Monitoring Upstate Medical University Upstate Medical University has one agency award with an end date of 12/31/05 in an ‘At Risk’ status that has a deficit balance. Agency Awards As of September, the deficit balance was $1.1 million. Central office is working with the campus to finalize the HR/Payroll service agreement

Buffalo State College and Sys. Both campuses continue to have deficit balances in their NYS OCFS programs. This is a complicated program because the Admin – Provost funding comes through the state side and then to the Research Foundation, making this a multi-step process. OCFS deficit balances at Buffalo State College ($8 million) decreased $4 million while Sys. Admin – Provost ($10 million) increased $6 million compared to last year. In July 2006, Sys. Admin. – Provost also took advantage of the campus line of credit to cover temporary sponsored program deficits. (Refer to Line of Credit and Corporate Debt Chart on page 7)

Insurance The total insurance billings outstanding for all fiscal years as of September 30, 2007 is $341,862. This total consists of the balance from years prior to 2008 of $255,335 as well as the remaining balance for fiscal year 2008 of $86,527. The majority of the prior year balance ($224k) is payable by one campus and OGCS is actively working with them and the other campuses to finalize and collect the remaining funds.

Payroll Suspense Payroll Suspense increased 17% compared to last September. The campuses with the largest balances are University at Albany ($441k) and University at Buffalo ($353k). The Office of Human Resources reviews the payroll suspense balances monthly and contacts those campuses with unusually high balances.

Mitigating Financial Risk – Project Updates Liabilities – Accounts Payable Weekly conference calls with the Supplier File sub focus group continue focusing on supplier file cleanup and naming standards. Business requirements are complete and the functional design is underway. Naming standards document is being worked on.

Net Assets – Working Capital The RF has no automated way to forecast working capital so it can adequately manage cash flow and maximize investment earnings. IS and Finance are working on a project to implement a Treasury Management function. Included in this project is the implementation of Oracle Treasury as well as expanding our use of Oracle Cash Management in the areas of cash positioning and cash forecasting. Phase One of this project is well underway with the four projects within scope in the definition stage, project planning and roles & responsibilities. The four projects: Treasury Management Function Definition; Supplier File Improvement; Cash Positioning; and Cash Forecasting also include a subproject under Cash Positioning for direct deposit of vendor payments to individuals, i.e. Travel reimbursements with SUNY Buffalo as our piloting campus. The subproject business requirements are complete and the functional design is near completion. The pilot with SUNY Buffalo and Central Office is underway, gathering individual approval forms.

Monthly Management Report September 2007 ix 10/16/2007

Notes to Management

Mitigating Financial Risk – Project Updates (continued) Financial Business System Inaccurate data based on manual closing at end of financial periods. IS and Finance have formed a team to work on implementing the automatic closing capability within Oracle. To date, a correction to auto-accounting for miscellaneous AR adjustments has been completed, FSG reports have been written for month end balancing that show reconciling variances, the auto reverse functionality has been implemented in the ledger, a developer is currently working on lifting ‘hard limit’ codes during nightly processing so that revenue will generate on these awards, automatic posting of journal entries has been implemented and auto accounting has been remapped to eliminate the manual journal entry to correct IDC revenue. Two SR’s have also been completed to automate reconciliations that will be used to test any accounting changes in the Oracle applications. Meetings for the automation of the payroll reconciliation will begin in November.

Accounting policies Board approval of key financial accounting policies are not reviewed regularly. The Finance Office will develop an accounting manual to document all critical accounting policies and an annual review with the Board Finance Committee will be scheduled. A ticket is being logged for the creation of a central office portlet to house the on-line accounting manual.

Monthly Management Report September 2007 x 10/16/2007 Accounts Receivable In Thousands

Sponsored Programs Accounts Receivable (Deficits) Sponsored Programs Accounts Receivable by Major Sponsor (Deficits) 140,000 130,815 70,000 124,288 124,720 66,115 120,312 120,000 60,000 117,293 56,845 109,758 52,643 95,708 95,166 91,864 48,763 100,000 50,000 44,764

80,000 84,811 40,000 40,288 33,909 29,271 60,000 30,000 25,469 25,046 18,189 15,975 40,000 20,000 35,107 29,122 18,334 13,780 17,576 16,742 16,152 15,165 14,286 20,000 10,000 10,534 2,922 2,712 3,395 7,053 1,697 10,554 7,427 1,427 0 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Excludes At Risk At Risk Total Deficits Federal Federal Flow Through State Multiple Sponsors Other

Source: KFIs Source: KFIs

● Deficits increased 36% or $33 million from September 2006 to September 2007. ● State sponsored deficit balances increased $9 million or 57% compared to September 2006. The campuses with the largest increases were: The campuses with the largest increases were: - University at Albany $7 million - Buffalo State College $6 million - University at Albany $5 million - University at Buffalo $5 million - Sys Admin. - Provost $14 million - Stony Brook University $3 million - Stony Brook University $2 million ● Federal Flow Through deficit balances increased $17million compared to September 2006. The campus with the largest decrease was Levin Institute $3 million. The campuses with the largest increases were: - Buffalo State College $5 million ● "At Risk" awards increased 5% from September 2006 to September 2007. - Sys Admin. - Provost $14 million Private sponsors increased $1 million while NYS sponsors decreased $1 million. The campus with the largest decrease was University at Albany - $3 million

This deficit balance includes NYS deficit balances of $34 million and $51 million respectively for September 2006 and September 2007.

● "Other" deficit balances increased $4 million compared to September 2006 mainly due to private sponsors.

Monthly Management Report September 2007 1 10/16/2007 Advances to Others In Thousands

Agency Advances to Others (Deficits) Agency Advance to Others by Location (Deficits)

16,000 14,602 10,000

13,117 9,479 8,000 12,000 7,440 13,126 11,644 9,890 9,450 10,581 6,090 6,000

8,000 8,246 5,380 8,347 4,884 4,000

2,822 2,376 4,000 2,010 1,757 2,200 2,000 1,783 1,476 1,905 1,254 1,995 1,644 1,103 1,927 1,063 1,072 1,359 1,208 0 703 1,059 0 - Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 University at Buffalo Stony Brook University Excludes At Risk At Risk Total Deficits Upstate Medical University Others

Source: KFI's Source: KFI's ● Agency deficit balances increased 23% from September 2006 to September 2007. ● Upstate Medical University deficits increased 75% from September 2006 to September 2007 mainly in Clinical Practice Plans. ● 'At Risk' deficit balances decreased 4% from September 2006 to September 2007. ● Deficit balances at Stony Brook University increased 13% from September 2006 to September 2007 mainly in Staffing Services.

● Deficit balances at University at Buffalo increased 88% from September 2006 to September 2007 mainly in Staffing Services.

Monthly Management Report September 2007 2 10/16/2007 Investment Portfolio As of August 31 In Thousands

Investment Portfolio by Pool

723 Planned Giving 1,044

2,393 Endowment 2,610

10,843 Short Term 10,105

38,892 Liquid 5,467

66,778 Retiree Health Ins 78,842

195,915 Operational 206,193

315,544 Total 304,260

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000

2007 2006

Source: Monthly Investment Report

Fiscal Year-to-Date Performance as of August 31, 2007: •Operational Pool down 0.3% ; Retiree Health Pool down 1.5% ; Endowment Pool down 1.6% ; Planned Giving Pool down 0.8% ; Liquid Pool up 0.8% ; Short Term up 0.8% •The Liquid Pool consists of University at Albany nanoelectronics funds invested separately per sponsor requirement

Monthly Management Report September 2007 3 10/16/2007 Deferred Revenue In Thousands

Sponsored Programs Deferred Revenue (Surplus) Sponsored Programs Deferred Revenue by Major Sponsor (Surplus)

200,000 70,000 62,790 63,170 177,501 59,475 180,000 60,000 164,398 60,360 52,690 50,000 160,000 45,549 44,691 144,135 145,711 40,976 39,944 38,787 40,000 140,000 40,397 42,510 33,080 32,962 30,000 120,000

102,447 20,000 100,000 9,663 7,235 7,144 7,336 7,234 10,000 7,031 80,000 8,408 7,172 6,025 7,033 2,530 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 60,000 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Federal Federal Flow Through State Multiple Sponsors Other

Source: KFIs Source: KFIs

● Sponsored surplus balances decreased 30% from September 2006 to September 2007. ● Multiple sponsored surplus balances decreased 15% compared to September 2006 and is The campuses with the largest decreases were: largely due to a change in award coding on one large Stony Brook University award - University at Albany $42 million to nonsponsored income. - Stony Brook University $6 million ● State sponsored surplus balances decreased 92% compared to September2006 and is due The campus with the largest increase were: to nanoelectronics activity at University at Albany. - University at Buffalo $1 million - Sys Admin - Provost $2 million ● Federal Flow Through surplus balances include NYS surplus balances of $2 million for both September 2006 and September 2007.

● "Other" sponsored surplus balances decreased 11% compared to September 2006 and is due to Private ($5 million) and Foreign ($4 million) sponsors.

Monthly Management Report September 2007 4 10/16/2007 Deposits Held for Others In Thousands

Agency Deposits Held for Others (Surplus) Agency Deposits Held for Others by Location (Surplus) 10,000 16,000

13,368 8,000 7,546 12,000 6,719 11,093 6,370 9,884 5,683 9,195 6,000 8,720 5,311

8,000 4,000

2,623 2,128 2,051 1,672 1,773 4,000 2,000 1,255 1,396 1,051 1,148 1,181 900 841 991 832 789 - 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 University at Buffalo Stony Brook University Upstate Medical University Others

Source: KFI's Source: KFI's

● Agency surplus balances increased 7% from September 2006 to September 2007. ● Surplus balances at Upstate Medical University increased 12% from September 2006 to September 2007 mainly in Clinical Practice Plans.

● Surplus balances at Stony Brook University increased 6% from September 2006 to September 2007 mainly in awards coded 'Other Agency'.

Monthly Management Report September 2007 5 10/16/2007 Fringe Benefit Pool Fiscal Year to Date Expenses In Thousands

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 Sep-04 Sep-05 Sep-06 Sep-07

Pension Health Insurances Other Total Expense FB Grant Charges

Source: General Ledger ● Insurance category includes: ● Pension expenditures through September increased 3% over fiscal 2007 . Social Security NYS Unemployment ● Health expense decreased 20% when compared to fiscal 2007. In August 2006, there was a $5 million NYS Disability funding transfer to fund post-retirement benefit obligation. In fiscal 2008, the retiree funding will occur Group Life monthly and through September $1.9 million has been posted. Long Term Disability Worker's Compensation ● Insurance expenditures increased 3% over the prior year.

● Other Category includes: ● The FB pool remains in a surplus due to a balance carried forward from the previous Vacation Payments fiscal year. Fringe benefit grant charges are $2.3 million above total expenses for Sick Leave Payments the current fiscal year. Special programs/Consulting

Monthly Management Report September 2007 6 10/16/2007 Corporate Debt In Thousands

Line of Credit Corporate Debt

25,000 10,000 20,721 20,000 7,500 6,380 6,255 6,125 5,990 5,845 15,000

5,000 10,000 8,000 3,350 6,000 2,736 2,708 4,205 2,500 5,000 2,540

0 0 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Project Line of Credit Building - Related Capital Leases

Source: General Ledger Source: General Ledger

▪ The RF has access to a line of credit (LOC) of $45 million. This LOC is ▪ The RF building at 35 State Street has an interest rate for the non-taxable used to support campus sponsored program projects. Sys.Admin.-Provost portion at 4.00% - matures in 2032 and the taxable portion at 5.38% - matures in 2009. borrowed $6 million to cover temporary sponsored program deficits. The RF entered into a swap agreement in January 2006 for the non-taxable debt and the The interest rate on the LOC is 5.625%. fixed rate is 3.61%

▪ The RF has access to a line of credit in support of daily cash flow of ▪ Capital leases include Sun and Xerox equipment used to support Oracle applications. $35 million. The balance as of September 2007 was zero.

Monthly Management Report September 2007 7 10/16/2007 Sponsored Program Revenue In Thousands

250,000 250,000

207,794 207,794 199,877 201,515 199,877 201,515 193,779 193,779 200,000 200,000 172,137 167,832 167,459 166,782 167,832 160,855 164,831 155,929 157,468 156,596 150,000 150,000 130,668 139,144

100,000 100,000

50,000 50,000 28,688 32,924 32,418 34,733 35,657 24,232 25,924 18,233 20,577 22,833 14,345 16,819 2,112 2,218 15,055 2,427 17,149 2,266 18,421 2,694 0 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Doctoral Degree Granting University Colleges Technology Colleges Total Direct Indirect Total SUNY System Admin

Source: SPAR Source: SPAR ▪ There was a 3% increase in the Direct expenditures over fiscal 2007. ▪ Overall Doctoral Degree Granting expenditures posted a 5% increase in comparison to the same period in the prior year. ▪ There was a 3% increase in the Indirect expenditures over the same period in previous year. ▪ University College expenditures increased 7% over September 2006. There was a 6% decrease in the number of award over last year. ▪ Overall expenditures posted a 3% increase over the same period in fiscal 2007. ▪ SUNY Sys Admin decreased 22% over fiscal 2007. The number of awards decreased 30% from 132 to 92.

Monthly Management Report September 2007 8 10/16/2007 Sponsored Program Revenue by Type In Thousands 250,000

225,000 207,794 201,515 193,779 199,877 200,000

175,000 167,832

150,000

125,000

97,636 100,550 97,350 98,833 100,000 90,000

75,000

40,239 43,985 45,709 49,406 50,000 36,659 30,619 35,749 29,741 40,385 25,000 22,769 27,837 26,163 23,806 18,404 14,957 0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07

Federal State Federal Flow Through Industry/Other Total

Source: SPAR

▪ There was a 3% increase in Total expenditures when compared to the same period last year.

▪ State activity decreased 22% over the same period last year. Industry and Other increased 28% over September 2006.

▪ Federal expenditures increase 2% over September 2006 while Federal Flow Through increased 8%.

▪ Included in Federal Flow Through for fiscal 2008 are $33,879,262 in NYS expenditures and $29,277,890 for fiscal 2007.

Monthly Management Report September 2007 9 10/16/2007 Corporate Activity/Revenue In Thousands

F & A Revenues Agency Service Fee Revenue 40,000 35,657 2,000 32,924 32,418 34,733 1,386 28,688 1,403 1,416 30,000 1,500 1,110 20,000 1,000 911

10,000 500

- - Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Source: SPAR Source: KFI

Royalty Income Investment Income and Other 15,000 10,000 12,635 12,000 7,500 6,660 5,472 9,000 7,180 5,000 6,654 5,459 3,740 5,530 3,213 6,000 2,500 3,000 953 - - Jun-04 Jun-05 Aug 05 Aug-06 Aug-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Source: CAR Source: CAR and Monthly Investment Report

▪ Other includes nonsponsored, gift and third party income ▪ Amounts reported on a month lag due to the timing of the receipt of the month end investment reports

Monthly Management Report September 2007 10 10/16/2007 Sponsored and Corporate Expenditure Category by Activity Type and NACUBO In Thousands

Sponsored Programs Sponsored Programs $207,794 NACUBO

Institutional Indirect Instruction Support 35,657 Salaries 24,820 5,469 66,394 Academic Support 1,052 Auxiliary Enterprises 5

Operations & Maintenance 5,623

Fringe Benefits Public Service 18,550 46,786 Research Other Direct Subawards 123,199 59,698 12,809 Scholarships & Equipment IFR Salary & Fellowships Student 7,766 Fringe 697 Services 6,920 143

Corporate Expenditures: Corporate Expenditures Administration and Support NACUBO $49,918 Institutional Support 41,152 Salaries Other Direct 17,336 25,372

Student Services 441

Public Service Academic 155 Support Instruction 2,146 3,692 Operations & Scholarships & Equipment Research Fringe Benefits Maintenance Fellowships 1,160 354 6,050 1,948 30

Source: KFI Monthly Management Report September 2007 11 10/16/2007 Salary Expenditures by Pool In Thousands

90,000 84,108 81,042 80,000 76,956 70,000 63,660

60,000

50,000

40,000

30,000

20,000 10,824 10,999 11,666 12,683 11,109 10,000 9,758 10,747 10,734 1,368 1,149 1,167 1,239 0 Sep-04 Sep-05 Sep-06 Sep-07

Regular Summer Graduate Undergraduate

Source: General Ledger ● Actual salary increase by pool compared to last year: ● Projected salary base assumptions for fiscal 2008: Regular 3.8% Regular 4.25% ($319 mil) Summer 8.7% Summer 2.50% ($18 mil) Graduate 3.5% Graduate 0% ($38 mil) Undergrad 6.2% Undergrad 0% ($3 mil)

Overall 4.3%

Monthly Management Report September 2007 12 10/16/2007 Total Net Cash Position by Location September 2007

Total Net Cash Position by Location

Prior Month Prior Year Prior Month Prior Year Campus Prior Month Prior Year Location Sponsored % Change % Change Agency % Change % Change Unrestricted % Change % Change Total 010 University at Albany$ (10,931,770) -66.8% -128.6%$ (30,035) -69.9% -6.7%$ 12,232,721 -18.5% 94.4%$ 1,270,917 020 1,113,859 31.8% -18.8% 11,238 -91.1% -83.0% 11,864,112 0.6% 15.1% 12,989,209 030 University at Buffalo (2,839,524) 47.4% -352.7% (1,153,966) 40.9% -326.0% 29,064,937 -0.7% -7.3% 25,071,447 050 Stony Brook University 1,838,087 242.4% -81.4% (4,317,211) 33.1% -16.4% 77,692,745 -5.6% 10.7% 75,213,621 100 SUNY Downstate Medical Center 8,399,887 2.1% -9.3% 250,586 172.9% -38.7% 5,170,094 0.2% -29.8% 13,820,568 110 Upstate Medical University 10,909,655 11.6% 12.3% 4,170,646 29.6% -5.8% 5,467,196 -5.1% -33.6% 20,547,497 150 SUNY Brockport 150,478 7.6% -70.5% (10,906) -44.4% -35.7% 128,503 -37.6% -40.7% 268,075 160 Buffalo State College (16,679,748) -15.9% -40.2% - 0.0% 0.0% 8,965,637 1.1% 17.6% (7,714,111) 170 SUNY Cortland 122,040 156.0% 230.3% 18,397 42.8% 9.6% 281,405 -25.5% -18.9% 421,842 180 SUNY Fredonia (67,663) 62.4% 21.3% - 0.0% 100.0% 220,234 0.1% 38.8% 152,570 190 SUNY Geneseo (121,410) 59.3% 16.0% (7,725) 0.0% 0.0% 225,293 -13.5% 61.7% 96,158 200 Old Westbury 202,934 863.8% -4.5% 25,787 35.2% 165.1% 120,896 -10.6% -36.4% 349,618 210 SUNY New Paltz 33,690 122.9% -89.5% - 0.0% 0.0% (23,307) -74.7% -176.4% 10,383 220 College at Oneonta (649,996) -51.5% -63.4% (23,808) -40.9% -32.8% 627,395 2.0% 26.9% (46,410) 230 SUNY Oswego 169,305 15.7% -76.0% - 0.0% 0.0% 2,116,804 2.2% -3.6% 2,286,109 240 SUNY Plattsburgh 294,498 -6.4% -35.6% - 0.0% 0.0% 114,182 -20.2% -58.9% 408,680 250 SUNY Potsdam (262,360) -184.4% -148.4% (6,796) 33.3% -1528.1% 303,879 -0.9% -9.9% 34,723 260 Purchase College (19,433) 80.7% 85.6% (95,364) -3.2% -133.9% 327,979 -1.7% -1.0% 213,182 270 SUNYIT (104,169) -85.0% -144.8% - 0.0% 0.0% 330,051 2.2% 53.8% 225,882 280 (267,578) -39.9% -224.0% (26,762) 39.4% 28.4% 342,462 2.3% 5.1% 48,121 350 334,923 30.0% 77.3% - 0.0% 0.0% (17,766) -25.4% -427.6% 317,158 360 SUNY Canton (47,214) 25.1% -9240.8% 46 0.0% 0.0% 112,727 -14.0% -9.3% 65,559 370 SUNY Cobleskill (33,954) -308.3% 82.8% (74,535) -0.8% -165.2% (51,734) -10.4% -1726.0% (160,223) 380 SUNY Delhi (102,921) 6.2% -205.3% - 0.0% 0.0% (9,671) 61.9% 52.1% (112,592) 390 Farmingdale State College (66,724) -34.4% 62.1% 47,544 526.6% 236.7% (355,548) -1.2% -41.0% (374,728) 400 Morrisville State College 159,243 -22.1% 248.2% - 0.0% 0.0% 121,862 6.5% 10.3% 281,104 550 SUNY ESF (1,742,137) 19.9% -68.8% (100,964) -22.2% -62.3% 3,607,310 1.6% 1.8% 1,764,210 570 Maritime College (87,943) 37.4% -232.8% (4,257) 0.0% 87.3% 24,430 -36.2% -44.8% (67,770) 580 College of Optometry 632,861 12.0% 251.1% (15,542) 0.0% 0.0% 483,294 -5.9% 4.3% 1,100,613 650 Central Office - 0.0% 0.0% 380,052 1.8% 1.9% 1,117,602 0.0% 0.0% 1,497,654 655 Sys. Admin - Provost (13,908,098) -11.2% -839.7% (796,203) 9.2% 35.1% 849,138 10.9% -43.2% (13,855,163) 660 Sys. Admin - Chancellor - 0.0% 0.0% - 441,222 6.9% 0.0% 441,222 680 Levin Institute 1,297,700 164.0% 148.2% - 0.0% 0.0% 159,374 148.3% 109.2% 1,457,074

Subtotal$ (22,273,483) 3.9% -141.4%$ (1,759,776) 69.8% -590.2%$ 162,055,457 -4.4% 7.5%$ 138,022,199

Investment Reserve 22,898,008 158.4% 246.6% 22,898,008 Corporate Reserve 4,386,229 270.7% 145.2% 4,386,229 Unapplied Cash receipts 2,667,391

Total$ (22,273,483) 3.9% -141.4%$ (1,759,776) 69.8% -590.2%$ 189,339,694 -4.4% 7.5%$ 167,973,826

Monthly Management Report September 2007 13 10/16/2007 Income Fund Reimbursable (IFR) Payments In Thousands

3,500 3,179 3,068 3,000

2,511 2,546 2,500 2,211 2,236 2,457

2,000

1,865 1,788 1,718 1,500

942 1,000 758 740 646 857

500

0 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07

Salary Fringe Total

Source: GL

▪ Total IFR salary and fringe decreased 23% over the same period in the prior year. Year to date, the expenditures are down 22%.

▪ University Center at Binghamton posted a 44% decrease over September 2006.

Monthly Management Report September 2007 14 10/16/2007 Agency Revenue In Thousands

Agency Revenue Agency Revenues by Location

45,000 20,000 40,346 17,725 16,723 35,216 16,093 34,492 38,960 15,000 33,800 12,459 30,000 26,757 11,826 12,028 11,809 12,384 24,684 33,089 9,839 25,647 10,000 23,773 8,869 6,865

15,000 3,775 3,643 5,000 3,099 3,232 3,371 2,596 3,041 911 1,110 1,403 1,416 1,386 890 1,228 - - Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Stony Brook University Upstate Medical University Direct Service Fee Total University at Buffalo Others Source: KFI's (MH amount included in Chart amounts not KFI's) Source: KFI's (MH amount included in Chart amounts not KFI's)

▪ There was a 15% increase in the Direct expenditures over fiscal 2007. ▪ Stony Brook University posted a 6% increase in comparison to the same period in the prior year. ▪ Indirect expenditures decreased 2% over the same period in previous year. ▪ Upstate Medical University revenues increased 5% over September 2006. ▪ Overall expenditures increased 15% over same period in fiscal 2007. ▪ University at Buffalo increased 126% over prior year due to revenues in Other Agency and Staffing Services.

Monthly Management Report September 2007 15 10/16/2007 Agency Expenditure Category by Activity Type and Campus In Thousands

Agency Expenditures Agency Expenditures by Campus $40,221

Salaries 24,938 Upstate Medical 12,384 Downstate Medical 596

All Others University at 928 Stony Brook 17,725 Other Direct 4,504 IFR Salary & Fringe Sys Admin 122 Provost University at Albany 1,313 Subawards Agency Fees 16 University at 169 1,261 Fringe Benefits University at Equipment Binghamton 9,051 Buffalo 176 6,865 394

Source: KFI

Monthly Management Report September 2007 16 10/16/2007