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L5U FOUNDATION
Consolidated Financial Statements
June 30, 2009
Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, v^'here appropriate, at the office of the parish clerk of court.
Release Date ///W^^ LSU FOUNDATION
CONSOl^roATED FINANCIAL STATEMENTS
JUNE 30,2009 CONTENTS
Face
Independent Auditors' Report 1
Financial Statements
Consolidated Statements of Financial Position 2-3
Consolidated Statements of Activities 4- 5
Consolidated Statements of Cash Flows 6-7
Notes to Consolidated Financial Statements 8-22
Snpplemental Information
Independent Auditors* Refjort on Supplemental Information 23
Annual Financial Statement Reporting Packet Formatted for Inclusion in the Annual Financial Statements of the Louisiana State University System 24-45 119131 Postlethwaite ^vlJlJi ^ Netterville
A PfofewiorKil Accounlir>g Corporation Asiociatod OfficBi in Pfincipol Citwt o( lK« United Stata www.pncpa.com
INDEPENDENT AUDITORS' REPORT
The Board of Directors LSU Foimdation Baton Rouge, Louisiana
We have audited the accompanying consolidated statements of financial position of the LSU Foundation, the LSU Proj>erty Foundation, the LSU Marine Property Foundation, the LSU Museum, LLC, and the Stephenson Disaster Management Institute Fihns, LLC as of June 30, 2009 and 2008, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Foundation's management. Our responsibility is to express an opinion on these consolidated financial statements based cm our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes the consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financialstatemen t presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the LSU Foundation, the LSU Property Foundation, the LSU Marine Property Foundation, the LSU Museum, LLC, and the Stephenson Disaster Management Institute Films, LLC as of June 30,2009 and 2008, and the consolidated statements of their activities and their cash flows for the years then ended in confonnity with accounting principles generally accepted in the United States of America. VQxM>duuou;t\ /\/2u^^
Baton Rouge, Louisiana October 5, 2009
8550UnitedPlazaBlvd, Suite 1001 • Baton Rouge, LA 70809 • Tel: 225.922.4600 • Fax: 225.922.4611 LSU FOUNDATION BATON ROUGE, LOUISIANA
CONSOLIDATED STATEMENTS OF FINANCUL POSITION JUNE 30,2009 and 2008
ASSETS
2009 2008 CURRENT ASSETS Cash and cash equivalents $ 12,433,821 $ 707,261 Restricted cash 13,637,608 22,187,175 Investments 4,855,029 18,490,241 Accrued interest receivable 957,354 1,894,182 Accounts receivable, net 95,017 238,167 Unconditional promises to give, net 10,331,058 11,006,637 Deferred charges and prepaid expenses 254,349 8,800 Total cunent assets 42,564,236 54,532,463
NONCURRENT ASSETS Restricted assets: bivestments 344,635,321 391,609,033 Investments - split-interest agreements 1,995,782 2,082,825 Assets held in split-interest agreements 529,535 702,435 Beneficial interest in split-interest agreements 395,082 512,477 Investment in partnership 18,836,471 19,366,959 Unconditional promises to give, net 21,684,437 28,959,126 Property and equipment, net 14,904,418 13,196,387 Other noncurrent assets 568,538 413,512 Total noncurrent assets 403,549,584 456,842,754
Total Assets $ 446,113,820 $ 511,375,217
The accompanying notes are an integral part of these statements.
-2- LIABILITIES AND NET ASSETS
20D9 2008 CURRENT LIABILITIES Accounts payable and accrued liabilities $ 3,265,836 $ 2,198,193 Current portion of amounts held in custody for others 8,266,347 8,932,225 Compensated absences payable 228,618 233,157 Current portion of bonds payable 628395 628395 Line of credit 6,08 UOO - Other current liabilities 3SM0 200,177 Total current liabilities 18,509376 12,192,147
NONCURRENT LLABILITIES Amounts held in custody for others 71,273,940 73,009,214 Refundable advances 5,038,730 3,761,046 Line of credit - 6,081,300 Bonds payable, net of current portion 7,526,605 8,156,605 Total noncurrent liabilities 83,839,275 91,008,165 Total liabilities 102,348,651 103,200,3)2
NET ASSETS Unrestricted: Unrestricted - general 2.317,610 2,639,398 Board designated endowments 8,942,552 11,050,279 Net assets relating to partnership investment 18,836,471 19,366,959 Temporarily restricted 124,648,487 188,996,670 Permanently restricted 189,020,049 186,121,599 Total net assets 343,765,169 408,174,905
Total Liabilities and Net Assets 446.113,820 511,375,217
-3 LSU FOUNDATION BATON ROUGE, LOUISIANA
CONSOLIDATED STATEMENTS OF ACTIVITIES YEARS ENDED JUNE 30,2009 and 2008
2009 2008 Changes in unrestricted net assets: Contributions $ 701,506 $ 723,949 Service fee 966,735 822.547 Earnings allocation 1.197,972 3,599372 Loss on disposition of property and equipment (2,090) - Total unrestricted revenues 2,864,123 5,145,868 Net assets released from restrictions: Satisfaction of program expenses 23,789,624 25,032,102 Total unrestricted revenues and other support 26,653,747 30,177,970
Expenses: Amounts paid to benefit Louisiana State University for: f*rojects specified by donors 19.868,567 22,788.685 Projects specified by the Board of Directors 1,757,115 1,419,907 Total program expenses 21,625,682 24,208392
Supporting services: Salaries and benefits 5,456,789 5,188,998 Occupancy 137,088 137,049 Office operations 704,274 569,237 Travel 120.883 194.522 Professional services 663,526 554.815 Dues and subscriptions 87,049 69,829 Meetings and development 715,969 403,054 Depreciation 102,490 134315 Total supporting services 7,988,068 7,251,819
Total expenses 29,613,750 31,460.411
Increase (decrease) in unrestricted net assets (2,960,003) (U82.441)
The accompanying notes are an integral part of these statements.
-4- LSU FOUNDATION BATON ROUGE. LOUISIANA
CONSOLIDATED STATEMENTS OF ACTIVITIES YEARS ENDED JUNE 30. 2009 and 2008
2009 2008 Changes in temporarily restricted net assets: Contributions $ 16,851.887 $ 31,829,994 Earnings allocation (56,224,843) (18,798,498) Changes in value of split interest agreements (332,194) - Loss on the disposition of property and equipment (853,409) (168,900)
Total temporarily restricted revenues (40,558,559) 12.862.596 Net assets released from restrictions: Satisfaction of program expenses (23,789,624) (25,032,102)
Increase (decrease) in temporarily restricted net assets (64348,183) (12,169,506)
Changes in permanently restricted net assets: Contributions 2,719.804 12,251,203 Earnings allocation 178,646 674.934
Increase in permanently restricted net assets 2,898.450 12,926,137
Increase (decrease) in net assets (64,409,736) (525.810)
Net assets - beginning of year 408,174,905 408,700,715
Net assets - end of year $ 343,765,169 $ 408,174,905
The accompanying notes are an integral part of these statements.
-5- LSU FOUNDATION BATON ROUGE. LOUISIANA
CONSOUDATED STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30.2009 and 2008
2009 2008 CASH FLOWS FROM OPERATING ACnVITIES Contributions received $ 25,646,811 $ 24,998,127 Service fees received 966,735 822,547 Interest and dividends received 11,495,633 19,748,670 Grants paid to benefit Louisiana State University (21,625,682) (24,208.592) Cash paid for suRjorting services (6,534,249) (5,775,596) Interest expense (440,722) (453,937) Net cash provided by operating activities 9,508,526 15,131,219
CASH FLOWS FROM INVESTING ACTIVmES Purchases of property and equipment (2,865,469) (7,046,675) Proceeds from sales of property and equipment 9,700 19,812 Purchases of investments (116,807358) (127,667,486) Proceeds from sales and maturities of investments 112,186,612 106,695307 Net (decrease) increase in fimds held in custody and refimdable advances (1,123,468) 6,447,045 Net cash used in investing activities (8,599,983) (21,551,997)
CASH FLOWS FROM FINANCING ACnVITIES Contributions restricted for endowment purposes 2,719,804 12,251,203 Proceeds from line of credit - 6,081300 Principal payments on bonds (630,000) (3.155,000) Investment gains restricted fcff endowmait purposes 178,646 674,934 Net cash provided by financing activities 2,268,450 15,852,437
NET CHANGE IN CASH AND CASH EQUIVALENTS 3,176,993 9.431,659
CASH AND CASH EOUIVALENTS AT BEGINNING OF YEAR 22,894,436 13,462,777
CASH AND CASH EOUIVALENTS AT END OF YEAR $ 26,071,429 $ 22,894^436
The accon^anymg notes are an mtegral part ot these statements.
-6- LSU FOUNDATION BATON ROUGE. LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2009 and 2008
RECONCaiATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES 2009 2008
Change in net assets $ (64,409,736) $ (525,810) Adjustments to reconcile change in net assets to net cash provided by operating activities: Unrealized loss on investments 63,547,063 49,244.649 Loss on investment in partnership 530,488 595379 Net (gain) losses on sales of investments 1,705,050 (15,192,811) Depreciation 102,490 134315 Amortization of bond issuance costs 8,800 8,800 Contributions restricted for endowment puiposes (2,719,804) (12,251,203) Investment gains attributable to cndowmem investments (178,646) (674,934) Loss on disposals of property and equipment 855,499 168,900 Decrease in accrued interest receivable 936,828 300,379 Decrease in accoimts receivable 143,150 758,118 (Increase) Decrease in imconditional promises to give 7,973,458 (8,827,007) Decrease in discount on unconditional promises to give (518,841) (1.724,729) Increase in allowance for uncollectible accounts 495,651 3,534.831 Decrease (Increase) in spBt-interest agreements 290,295 (1,214,912) Increase in other assets (155,026) (82,117) Increase in accounts payable and other liabilities 901,807 879,171 Net cash provided by opeisting activities $ 9,508,526 $ 15331,219
The acconq)anying notes are an integral part of these statements. -7- LSU FOUNDATION BATON ROUGE, LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
L Significant Accounting Policies and Presentations
Qrpani7^tinn and Purpose
The LSU Foundation (the Foundation) is a non-profit organization which was organized to promote the educational and cultural welfare of the Louisiana State University System Office, the Louisiana State University and Agricultural and Mechanical College, the Louisiana State University Agricultural Center, and die Paul M. Hebert Law Center, herein collectively referred to as 'the University", by accepting contributions for the purpose of scholarships, academic support, research support, and other designated projects forthe benefit of the University.
Consolidation
The Foundation elects all of the members of the LSU Property Foundation's board of directors and, ^eteforCy is considered to have a majority voting interest in the LSU Property Foundation's board. The LSU Property Foundation is the sole member of the LSU Marine Property Foundation. Also, the LSU Property Foundation is the sole member of the LSU Museum, LLC and the Stephenson Disaster Management Institute Films, LLC. As such, the consolidated fmancial statements of the Foundation include the accounts of the LSU Property Foundation, the LSU Marine Property Foimdation, the LSU Museum, LLC, and the Stephenson Disaster Management Institute Fihns, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.
Basis of Accounting
The financial statements of the Foundation have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities.
Cash Equivalents
The Foundation considers all highly liquid investments with original maturities of three months or less to be cash equivalents.
The Foundation has deposits in excess of FDIC insured limits. Management believes the credit risk associated with these deposits is minimal.
Contributions
Contributions received are recorded as unrestricted, temporarily restricted, or pennanently restricted support, depending on the existence or nature of any donor restrictions. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions.
-8 LSU FOUJVDATION BATON ROUGE, LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies and Presentations (continued)
Income Taxes
The LSU Foundation, LSU Property Foundation, and LSU Marine Property Foundation operate as public charities under Section 50I(cX3) of the Internal Revenue Code and, accordingly, are exempi from federal and state income taxes and the excise tax which applies to certain foundations.
In June 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 clarifies the accounting for uncertainty m income taxes recognized in an organization's fmancial statements in accordance with SFAS No. 109, Accounting for Income Taxes ("SFAS 109"). FIN 48 clarifies the application of SFAS 109 by defming a criterion that an individual tax position must meet for any part of the benefit of that position to be recognized in an organization's financial statements. Additionally, FIN 48 provides guidance on measurement, derecognition, classification, interest and penaWes, accounting in interim periods, disclosure, and transition. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately sustained for an individual imcertain tax position or for all uncertain lax positions in the aggregate could differ from the amount recognized. Management has completed its evaluation of the impact of this standard, and the Foundation is unaware of any tax positions that would require disclosure.
Promises to Give
Vnconditional promises to give are recognized as revenue in the period received. Promises to give are recorded at their realizable value if they are expected to be collected in one year and at their fair value if they are expected to be collected in more than one year. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become uncondhional. An allowance for doubtful accounts has been established based on management's assessment of collectability.
Property and Equipment
Purchased property and equipment are recorded at cost. Property and equipment donated to the Foundation are recorded at their fair market values at the date of donation. Depreciation is provided over the estimated useful lives of exhaustible assets on a straight-line basis. Inexhaustible assets, such as artworic and collections, arc not depreciated. These inexhaustible assets are evaluated for impairment periodically.
Investments
Investments in equity securities with readily determinable fair values and all investments in debt securities are recorded at fair value based on quoted market prices. For those investments where quoted market prices are unavailable, management estimates fair value based on information provided by the fund managers or the general partners. Dividend, interest, and other investment income are recorded as increases in imrestricted, temporarily restricted, or permanently restricted net assets depending on donor stipulations. LSU FOUNDATION BATON ROUGE, LOUISUNA
NOTES TO THE rONSOLTDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies and Presentafions (continued)
Investments (continued)
Donated investments arc recorded at their market value at the date of receipt, which is then treated as cost Realized gains and losses on dispositions are based on the net proceeds and the adjusted cost basis of the securities sold, using the specific identification method. Realized gains and losses are recognized in the Foundation's current operations.
Non-monetary Transactions
The University provides data processing and similar services to the Foundation. In exchange forthese services, the Foundation fimds the purchase of a sign ificant amount of supplies and equipment for use by the University in its normal operations. Both the University and the Foundation consider the values received to be commensurate with the values provided by the other party.
Funds Held in Custody
The Foundation considers all state matching funds and unexpended income from these funds to be reported as funds held in custody. Additionally, amounts held for other LSU System affiliated foundations, liabilities associated with charitable gift annuities, and liabilities associated with charitable remainder trusts are also reported as funds held in custody. All funds held in custody are recorded at fair market value.
Accrued Vacation Leave
The Foundation records a liability for accrued vacation of its employees. The liability is included in the compensated absences payable line item on the statements of fmancial position at June 30,2009 and 2008 in the amounts of $228,618 and $233,157, respectively.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assimiptions that affect reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.
Fair Values of Financial Instruments
The Foundation's financial instruments, excluding investments which are described in Note 2 and split interest agreements which are recorded at estimated fair value, include cash and cash equivalents, bonds payable, and unconditional promises to give. The Foundation estimates that the fair values of all its financial instruments at June 30,2009 and 2008 do not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying statements of financial position.
10- LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies and Presentations (continued)
Split-interest Agreements
The Foundation is the beneficiaiy of various charitable gift aimuities. Charitable gift annuities are arrangements between a donor and an organization in which the donor contributes assets to the.organization in exchange for a promise by the organization to pay a fixed amount for a specified period of time to the donor or other parties designated by the donor. The assets received are recorded at fair market value and reporteda s investments - split-interest agreements on the statements of financial position. When the annuity is initially executed, the difference between the fair market value of assets receivedan d the present value of the annuity payment liability is reported as contribution revenue in the statements of activities. On an annual basis, the annuity payment liability is revalued using present value techniques, based on actuarial assumptions, inchiding applicable mortality tables. Changes in the present value of the annuity payment liability are reported in the statements of activities as a change in value of split-interest agreements. The present value of the liability is included in the statements of financialpositio n as funds held in custody.
Reclassification
Certain reclassifications have been made on the 2008 fmancial statements and footnotes to conform to the 2009 presentation. Management has determined that certain reclassifications of net assets on the 2008 fmancial statements were necessary. Temporarily Restricted Net Assets was reduced by $721,376 and reclassified between Unrestricted Net Assets and Permanently Restricted Net Assets in the amounts of $612,567 and $108,809, respectively.
2. Investments
Investments in debt and equity securities with readily determinable fair values are stated at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for discussion of fair value measurements. The asset allocation of the Foundation's portfolio involves exposure to a diverse set of markets. The investments within these markets involve various risks such as interest rate, maricet, and credit risks. The Foundation anticipates that the value of its investments may, fromtim e to time, fluctuate substantially as a result of these risks. The Foundation has also entered into agreements with private equity and real estate partnerships. See Note 14 for cash commitments relating to these investments.
Investment earnings are allocated to unrestricted, temporarily restricted and permanently restricted net assets based on donor restrictions for certain permanaitly endowed funds and based on policies approved by the Board of Directors for certain non-endowed funds. The Foundation employs a unitized method of accounting for pooled endowed investments. Each participating fund enters into and withdraws from the pooled investment account based on monthly unit values. Monthly unit values reflect changes in the fair value of investments within the investment pool. A spending allocation approved by the Board of DirectOTs is made each year to the funds CHI a per unit basis.
-11 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Ittvestments (continued)
Investments were comprised of the following at June 30, 2009 and 2008:
2009 2008 Certificate of deposit $ 395,000 $ 395,000 Short Term Investment Fund 2,236,919 1,326,950 Government obligations 52,408,896 75,078,211 Municipal Bonds 4,336,241 16,052,154 Corporate obligations 60,014,870 54,032,750 Mutual Funds 133,252,651 157,317,256 Commingled Funds 21,978,586 18,927,267 Common Stock 15,312.560 18,816,777 Private equity 8,929,021 8,777,364 Hedged fimds 51,881,078 60,399,607 Real estate investment trusts 429,802 272,698 Pooled tocome Fund 112,873 112,873 Land 48,058 522,652 Royahy interest 149.577 150,540
The certificate of deposit is currently pledged as collateral for a loan held by a donor-related party. The donor of the certificate stipulated that it remain as collateral for the loan until the indebtedness was paid in fiill. The loan is scheduled to mature in November 2012. The certificate of deposit, therefore, remains pledged as of June 30,2009, and will remain pledged until the remaining balance is paid.
Investment earnings (losses), net of fees, were comprised of the following for the years ended June 30,2009 and 2008:
2009 2008
Interest and dividend income $ 10,934,376 $ 20,123,225 Realized gains (losses) on sales of investments (1,705,050) 15.192.811 Unrealized gain (loss) on investments (63,547,063) (49,244,649) Unrealized loss on investment in Shaw Center for the Arts, LLC (530.488) (595.579) $ f54.S4« 225^ .1: n4.??4.ip?'^
From time to time, the fair value of assets associated with donor-restricted endowment funds may fall below the level the donor or the Board of Regents policy requires the Foundation to retain as a fund of perpetual duration. Deficiencies of this nature that are reported in temporarily restricted net assets were $12,668,996 and $317,682 as of June 30,2009 and June 30,2008 respectively. These deficiencies resulted from unfavorable market fluctuations. Subsequent gains that restore the fair value of the assets of the endowment fund to the required level will be classified as an increase in temporarily restricted net assets.
'12 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. Fair Values of Financial Instruments
Effective for the fiscalyea r ended June 30, 2009, the Foundation adopted SFAS 159 and SFAS 157, The Fair Value Option for Financial Assets and Financial Liabilities and Fair Value Measurements. SFAS 157 clarifies the definition of fair value and establishes a fi-amewor k for measuring fair value. The Foundation did not elect the fab- value option on any items under SFAS No. 159, which would have allowed the Foundation to mark any assets or liabilities accounted for under the standard to fair value each period through an adjustment to earnings. The Foundation, in accordance with Financial Accounting Standards Board Staff Position No. 157-2, "TTie Effective
Date of FASB No. 157," will defer application of SFAS No. 157 for nonfmancial assets and liabilities until the fiscal year beginning July 1, 2009.
In addition to defining fair value, SFAS No. 157 expands the disclosure requirements regarding fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels, based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
• Level 1 - inputs are based upon adjusted quoted prices for identical instruments traded in active markets.
• Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of assets or liabilities.
• Level 3 -. inputs are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.
Fair Value of Assets Measured on a Recurrins Basis
The Foimdation's investments in securities with readily determinable fair values are recorded at fair value based on quoted market prices. For those investments where quoted prices are unavailable, management estimates fair value based on quoted prices for similar instruments with consideration of actively quoted interest rates, credit ratings and spreads, prepayment models, and collateral data. The Foundation utilizes several externally managed funds of funds for private equity, venture capital, and hedge funds, and with these types of investments, quoted prices are often unavailable, and pricing inputs are generally unobservable. The Foundation relies on the valuation procedures and methodologies of the external managers hired specifically to invest in such securities or in strategies which employ such securities. The application of those valuation procedures and methodologies are borne out in each manager's SFAS 157 compliant annual audited financial statements and were monitored through the Foundation's reporting period ended June 30, 2009.
The following table presents the fair value at June 30, 2009, for each of the fair-value hierarchy levels, of the Foundation's financialasset s and liabilities that are measured at fair value (in thousands) on a recurring basis. -13- LSU FOUNDATION BATON ROUGE, LOUISUNA
NOTES TO THE CONSOLIDATED FINANCLVL STATEMENTS
3. Fair Values of Financial Instruments (continued)
Level 1 Level 2 Level 3 Certificate of Deposit $ 395,000 $ - $ Government/Agency Obligations 3,682,798 48,726,098 - Corporate Obligations 6,532 60.008,338 - Common Stock 15,312,560 - - Commingled Funds - 21,587,598 390,988 Hedge Funds - - 51,881.078 Municipal Bonds - 4,336,241 - Private EquityA^enture Capital - - 8,929,021 Mutual Funds 133,252,651 - - Short Temfi Investment Fund - 2,236.919 - Real Estate Investment Trusts 429,802 - - Trust Funds Held by Agent - 529,535 - Pooled Income Fund 112,873 - - Beneficial Interest in Split Interest Agreements - 378,467 16.615
Total $ 153,192.216 $ 137,803,196 $ 61,217,702
The following table presents the changes in fair value for the year ended June 30, 2009, in Level 3 instruments that are measured at fair value on a recurring basis.
Private Commingled Equity/Venture Funds Hedftc Funds Capital Other Total Balance, July 1.2008 $0 $60,399,607 $8,673,007 $1,090 $69,073,704 Net Purchases, Capital Calls, & Sales 194.125 (650,000) 2,498,473 13,141 2,055,739 Unrealized gains (losses) - (7,868.529) (2,242.459) 2,384 (10,108,604) Realized gains Oosses) - - - - - Transfers in (out) of Level 196,863 - - - 196,863 Balance, June 30,2009 $390,988 $51,881,078 $8,929,021 $16,615 $61,217,702
Fair Value of Assets Measured on a NonrecijrrJn s Basis
Certain assets and liabilities are measured at fair value on a nonrecuiTing basis and therefore are not included in the tables above.
14 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE rONSOI.TDATED FINANCIAL STATEMENTS
4. Split-Interest Agreements
The Foundation serves as trustee for various charitable remainder trusts for which the Foundation is not the irrevocable beneficiary. The funds are held and administered by a third-party financial institution as an agent of the Foundation. The fair market value of the funds held is reporteda s an asset and corresponding liability in the statements of financial position. As of June 30, 2009 and 2008, the fair market value of both the asset and corresponding liability of these charitable remainder trusts totaled $529,535 and $702,435, respectively.
The Foundation is also the irrevocable beneficiaiy of three split-interest agreements for which the funds are held and administered by third parties. The Foimdation*s interest in the funds held by the third parties is measured at present value and reported as an asset in the statements of financial position as beneficial interest in split-interest agreements. As of June 30,2009 and 2008, the fair market value of the beneficial interests totaled $395,082 and $512,477, respectively.
The Foundation has several charitable gift annuity arrangements vrith donors in which the Foundation has received assets from a donor in exchange for the Foundation's promise to pay the donor or his or her designee a fixed amount over a specified period of time. The assets are held as investments of the Foundation and are reported as investments-split interest agreements on the statements of financial position at their fair value of $1,995,782 and $2,082,825 as of June 30, 2009 and 2008. respectively. The present value of the amount due to these donors or their designees as of June 30, 2009 and June 30, 2008 totaled $1,386,730 and $1,133,488 respectively and is included in the amounts held in custody liability.
5. Property and Equipment
A summary of property arid equipment at June 30,2009 and 2008 follows:
2009 2008
Computers $ 4,110,609 $ 4,162,864 Furniture and equipment 360.670 363.375 Buildings and land improvements 176.996 137.146 Construction in progress 3,061.947 1.620,486 Livestock 100.000 . 7,810,222 6.283.871 Less: accumulated depreciation ( 4.381.524) 4.339.009) 3,428,698 1,944.862 Land 6,738.055 6,278,250 Artwork and other non-depreciable assets 4.737.665 4.973.275 S 13.196.387
-15 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Funds Held In Custody
Under agreements with the University and certain other charitable organizations which support the University, the Foimdation manages and holds for deposit designated funds few these entities. The funds being held at June 30. 2009 and 2008 were as follows:
2009 2008
LSU - Alexandria Foundation $ 10,077,336 $ 11,901,134 LSU - Eunice Foundation 1,519.864 1,662.790 Tiger Athletic Foundation 4,239.911 4,224,165 State Matching Funds Managed for the University 61,786,912 62,317,428 Split-interest agreements 1.916.264 1.835.922 79,540,287 81,941,439 Less: portion classified as current ( 8.266.347) L 8.932.225) % 71.273.940 $ 73.009.214
Retirement Contributions and Expense
The Foundation has a 401(k) retirement plan for its employees. The Foundation contributes up to 7% of the employee's salary to the plan. An employee is vested 100% upon beginning employment with the Foundation. The retirementpla n requires a minimum participation age of 21. The Foundation contributed $263,194 and $243,792 to the plan during the years ended June 30, 2009 and 2008, respectively.
8. Operating Lease
The Foundation leases office space from the LSU Alunmi Association imder an agreement which expires on November 30,2009. Upon lease expiration, the Foundation has the option to lease the office space on a month-to- month basis. For the years ended June 30, 2009 and 2008, rent expense incurred under this agreement totaled $117,254 and $115,130, respectively.
9. Net Assets Released From Donor Restrictions
Net assets were released from donor restrictions by satisfaction of the restricted purposes or by occurrence of other events specified by the donors during the years ended June 30, 2009 and 2008, as follows:
2009 2008
Chairs and professorships $ 5,103,965 3; 4,648,006 Scholarships and fellowships 3,620;208 3,505,068 Specific academic and research projects 5,148,020 5,431.383 Academic support 6,360.626 6,134,029 Capital outlay and improvements 1,481,381 3,953,489 Research support 1,397,974 1,148,445 Institutional support 677.450 211,682 5: 2S.032.1Q2
16 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10. Net Assets
Temporarily restricted net assets at June 30, 2009 and 2008 were available for grants to support Louisiana State University in the following general areas:
2009 2008
Chairs and professorships $ 17,778,171 $ 51,953.474 Scholarships and fellowships 12.774.793 28,766.674 Specific academic and research projects 17.008,384 27,899,579 Academic support 33,797,878 43,893,314 Capital outlay and improvements 29,212,027 26,044,080 Research support 4,286,562 5,342,261 Institutional support 9.790.672 5.097.288 $ 124.648.487 $ 188,996.670
Permanently restricted net assets at June 30, 2009 and 2008 were restricted to investments in perpemity, the income from which is expendable to support the activities below:
2009 2008
Chairs and professorships $ 102,186,241 $ 100,818,199 Scholarships and fellowships 45,966,489 44,506,282 Specific academic and research projects 21,979.358 21,727,949 Academic support 16.198,541 16,242.052 Capital outlay and improvements 185,448 187,241 Research support 1.729,565 1.727,565 Institutional support 774.407 912,311 S 189.020.049 L= 186.121.599
-17 LSU FOUNDATION BATON ROUGE, LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. Endowed Net Assets
The LSU Foundation has established prudent mvestment and spending policies with the objective of maintaining the purchasing power of its endowed assets in perpetuity and to provide a stable level of support to the beneficiaries. To achieve this objective, the LSU Foundation's asset allocation strategy is reviewedperiodicaU y and adjusted to target a total return that covers inflation, administrative expenses, and spending allocations, while minimizing volatility.
Certam endowed funds are provided by the State of Louisiana as a match to qualifying private endowed contributions and are managed under agreement v/ith the University for the University's benefit. These endowed assets are further subject to the investment and spending policies established by the Louisiana Board of Regents, which has statutory authority to administer the matching funds program.
A spending rate is determined by the LSU Foundation Board of Directors on an atmual basis, with consideration given to the market conditions, the spending levels of peer institutions, and the level of real return after spending measured over a rolling sixty-month time period. The spending rate approved by the Board is applied to the sixty- month moving average market value of the investment pool of endowed assets. The objective is to provide relatively stable spending allocations. The net spending rate approved by the Board of Directors for the June 30, 2009, allocation is 4.0%. State law dictates that no porticm of the corpus (original amount of donation) of the endowed assets shall be allocated for spending.
The Louisiana Board of Regents spending policy dictates that no portion of the inflation-adjusted corpus, as defmed by the Board of Regents, is to be allocated for spending.
The LSU Foundation Board of Directors has chosen to manage a portion of its unrestricted net assets as part of the endowed funds investment pool. At June 30,2009, the market value of these Board Designated Endowed Funds is $8,942,552.
18 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. Endowed Net Assets (continued)
Temporarily Pennanently Unrcstriclcd Restricted Restricted Total
Endowment net assets. June 30. 2008 J 11,050.279 J 74,590,793 $ 186.121.599 $ 271.762.671
Investment Return; Investment income . 5.605,974 178,646 5.784.620 Net appreciation (depreciation) (1,978.070) (63,221.542) (65.199.612)
Contributions (inc). InterAmd transfers) 16,320 - 2.719.804 2.736,124
Appropriation of endowment assets for expenditure (468.591) (i2.I6U83) . (12.629,974)
Other changes: Transfers to create board-designated endowment fimds 322.614 322.614
Rekased torn Restrictions
Endowment net assets, June 30,2009 8,942.552 202,776.443
Temporarily Permanently Unrestricted Restricted Restricted Total
Dcnor-Rcstiicted Endowment $ 4.813.842 $ 189,020,049 $ 193,833,891
Board-Designated Endcwment 8.942.SS2 8.942.552
Total S 8,942.552 % 4.813,842 J 189,020.049 y 202,776,443
19- LSU FOUNDATION BATON ROUGE. LOUISUNA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. Unconditional Promises to Give
Unconditional promises to give at June 30,2009 and 2008 are as follows:
2009 2008 Promises to give expected to be collected in: Less than one year $ 14,498,936 $ 14,678,864 One to five years 16,976,274 24,712,294 More than five years 9.251.500 9.309.010 40,726,710 48,700,168 Less discount on promises to give ( 4,543,337) ( 5,062,178) Less allowance for uncollectible accounts ( 4.167.878t ( 3.672,227) Net unconditional promises to give $ 32,015,495 % J9.965^763
The discount rate used in discounting unconditional promises to give was 2.85% and 4.70% as of June 30,2009 and 2008, respectively.
13. Conditional Promises to Give
The E. J. Ourso College of Business of Louisiana State University is conducting a capital campaign for the construction of a new business education complex. The Foundation has received conditional and unconditional pledges relating to this campaign. Conditional pledges for the construction of the complex totaled $6.4 million and $5.3 million as of June 30, 2009 and 2008, respectively. As of the years ended June 30, 2009 and 2008, the Foundation had received payments of approximately $5,039,000 and $3,761,000, respectively, on these conditional pledges. Given that these pledges do not meet the revenue recognition criteria under generally accepted accounting principles, they are not reflected as contributions in the statements of activities. The pledge payments received to date for these pledges will be reflected as refundable advances until the conditions of the pledge agreements are met.
14. Commitments
The LSU Property Foundation had one project under construction as of June 30,2009. The contract amount for this project has an estimated budget totaling $4.67 million. The commitment remaining on this contract totals $1.55 million at June 30,2009.
The LSU Foundation anticipates that construction of a new E. J. Ourso College of Business Education Complex will commence during the fiscal year ending June 30,2010. In conjunction with funding a portion of the costs of this project, the Board of Directors authorized the LSU Foundation to externally finance approximately $4.1 million for which pledge payments are not expected to be received until after project commencement In addition, the Board has committed the use of $4 million of unrestricted operating funds for the project, with those ftinds to be reimbursed from an unrestricted bequest the Foundation is expected to receive during or shortly subsequent to the project construction period.
20 LSU FOUNDATION BATON ROUGE. LOUISIANA
NOTES TO THE CONSOLIDATED FCVANCUX STATEMENTS
14, Commitments (continued)
The Foundation committed $ 1,350,000 to Louisiana Fund I, L.P., a Delaware Limited Partnership in October of 2004. As of June 30,2009, capital contributions to dale totaled $958,500 to Louisiana Fund I. The Foundation also committed a total of approximately $ 19,512,000 to various Private Equity Funds during the years from 2005 through 2007. As of June 30,2009, capital contributions to dale totaled approximately $10,089,000 to the Private Equity Funds.
15. Bonds Payable
On May 1,2003, the Foundation participated in borrowing, along with several other organizations, the proceeds of revenue bonds totaling $31,5 5 5,000 issued by the Louisiana Public Facilities Authority. The Foundation's portion of the borrowing was $12,725,000. The Foundation is scheduled to repay the funds borrowed in 2022. The borrowed proceeds from the issuance were used to help ftmd several construction projects including the Shaw Center for the Arts.
Interest is currently being paid using a weekly rate as determined by the remarketing agent. The interest rates at June 30,2009 and 2008 were 1.68% and 2.98%, respectively. Total interest expense incurred on the bonds forthe years ended June 30,2009 and 2008 was $180,091 and $327,971, respectively. The bonds are collateralized by future revenues of the Foundation.
The principal portion of the current outstanding debt is scheduled to mature as follows:
Year ending June 30, 2010 $ 628,395 2011 628,395 2012 628,395 2013 628,395 2014 628,395 2015-2019 3,141,975 2020-2022 1.87U050
16, Line of Credit
In December 2007, the Foundation entered into an agreement with a financial institution for an unsecured $10,000,000 revolving line of credit of which $3,918,700 was unused as of June 30,2009. Interest payraraits are required annually. Any unpaid principal and accrued interest is due on June 20,2010. The line of credit has a variable interest rate determined at the per annum LIBOR for United States Dollars established by the British Bankers Association for interest periods of thirty days plus .63%. The interest rate as of June 30,2009 and 2008 was 0.94% and 3.09%, respectively. Total interest expense incurred on the line of credit for the years ended June 30, 2009 and 2008 was $260,631 and $125,966.
21 - LSU FOUNDATION BATON ROUGE, LOUISIANA
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17. Investment in Shaw Center for the Arts
The LSU Foundation is a 50% investor in the Shaw Center for the Arts, LLC. The investment recorded on the statements of financial position, $18,836,471 and $19,366,959 at June 30, 2009 and 2008, respectively,i s accounted for by the equity method. The summarized unaudited financial information as of June 30,2009 and audited financial information as of June 30, 2008 of the Shaw Center for the Arts, LLC is as follows:
2009 2008
Total assets $ 37,770,361 $ 38.820.459 Total liabilities !^; 97,4^^ % )lg-?43 Net loss $ (1.031.974^ $ (1,188.3$4'>
18. Transactions with the Univcratv
The Foundation has certain transactions in the normal course of operations with the University. The transactions consist of reimbursement for salaries, which are processed by the University and reimbursement for certain expenses paid by the University on behalf of the Foundation, such as payments of scholarships. The amount owed to the University at June 30, 2009 and 2008 for these types of expenses was $2,437,935 and $1,667,087 respectively.
19. Development Exi>en5es
The Foundation incurred expenses totaling $4,420,635 and $4,125,758 for the years ending June 30,2009 and 2008, re^>ectrvely, relating to development and fundraising. Such amounts are included in supporting services in the accompanying statements of activities.
20. Capital Campaign
In 2006, the University publicly announced the largest cqjital campaign in the University''s histoiy. The University is currently in the active phase of the campaign, known as "Forever LSU: The Campaign for Louisiana State University," the goal of which is to raise $750 million by the year 2010. The Foundation plays a major leadership role in the ftmdraisingeffort s for the campaign.
-22 SUPPLEMENTAL INFORMATION
ANNUAL FINANCIAL STATEMENT REPORTING PACKET FORMATTED FOR INCLUSION IN THE ANNUAL FINANCIAL STATEMENTS OF THE LOUISIANA STATE UMVERSITY SYSTEM I&TIIMI Postlethwaite U&2KI & Netterville
A Prot»Mionol Accounling COfporohoo Associated Officei m Ptmcipal Cih« of lK« United Stataj www.pncpa.com
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION
The Board of Directors LSU Foundation Baton Rouge, Louisiana
Our report on the audit of the consolidated financial statements of the LSU Foundation, the LSU Property Foundation, the LSU Marine Property Foundation, the LSU Museum, LLC, and the Stephenson Disaster Management Institute Fihns, LLC as of and for the year ended June 30, 2009, appears on page 1. That audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The Annual Financial Statement Reporting Packet, presented as supplementaiy information, is not a required part of the basic financial statements, but is supplementaiy information required by the Louisiana State University System. This infonnation has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the consolidated financial statements taken as a whole. l^.ati(Mctu;& f/\/Qtt4yuM Baton Rouge, Louisiana October 5,2009
-23-
8550UnitedPlazoBlvd, Suife 1001 • Baton Rouge, lA 70809 • Tel: 225.922.4600 • Fax: 225.922.4611 LSU FOUNDATION BATON ROUGE. LOUISIANA
glATEMENT OF NET ASSETS FOR THE YEAR ENDED JUNE 30, 2009
ASSETS
Current Assets Cash and cash equivalents 26,071,429 Investments 4,855,029 Accounts receivable, net 95,017 Pledges receivable 10,331,058 Due from other campuses Due from State Treasury Due from Federal Government Inventories Deferred charges and prepaid expenses 254,349 Notes receivable Other current assets 957,354 Total current assets 42,564,236
Noncurrent Assets Restricted assets: Cash and cash equivalents Investments 346,631,103 Accounts receivable, net Notes receivable Other 924,617 Investments 18,836,471 Pledges receivable 21,684,437 Notes receivable Capital assets, net 14.904,418 Assets under capital leases, net Other noncurrent assets 568,538 Total noncunent assets 403,549,584
Total assets 446,113,820
24 LIABILITIES
Current Liabilities Accounts payable and accrued liabilities 3,265,836 Due to other campuses Due to State Treasury Due to Federal Government Deferred revenues Amounts held in custody for others 8,266,347 Compensated absences payable 228,618 Capital lease obligations Claims and litigations payable Notes payable Contracts payable Reimbursement contracts payable Bonds payable 628^95 Other current liabilities 6,120,180 Total current liabilities 18.509,376
Noncurrent Liabilities Amounts held in custody for others and refundable advances 76,312,670 Compensated absences payable Capital lease obligations Claims and litigations payable Notes payable Contracts payable Reunbursement contracts payable OPEB payable Bonds payable 7,526,605 Other noncurrent liabilities Total noncurrent liabilities 83,839,275
Total liabilities $ 102,348,651
NET ASSETS
Invested in capital assets, net of related debt 14,904,418 Nonexpendable 189,020,049 Expendable 124,648,487 Unrestricted 15,192,215 Total net assets 343,765,169 25 LSU FOUNDATION BATON ROUGE, LOUISIANA
STATEMENT OF REVENUES. EXPENSES, AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2009
OPERATING REVENUES Student tuition and fees Less scholarship allowances Net student tuition and fees Gifts received by the foundations 17,553,393 Endowment income (component units only) (53,143,175) Federal appropriations Federal grants and contracts State and local grants and contracts Nongovernmental grants and contracts Sales and services of educational departments Hospital income Auxiliary enterprise revenues, including revenues pledged as security for bond issues Less scholarship allowances - Net auxiliary revenues Other operating revenues 966,735 Total operating revenues (34,623,047)
OPERATING EXPENSES Educational and general Instruction Research Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships and fellowships Auxiliary enterprises Hospital Other operating expenses 7,988,068 Total operating expenses 7,988,068 Operating income (loss) (42,611,115)
26 LSU FOUNDATION BATON ROUGE, LOUISIANA
STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30,2009
NONOPERATING REVENUES AND (EXPENSES) State appropriations $ Gifts Net investment income (loss) (1,705,050) Interest expense Payments to or on behalf of the university (21,625,682) Other nonoperating revenues (expenses) (1,187,693) Net nonoperating revennes (expenses) (24,518,425) Income before other revenues, expenses, gains, and losses (67,129,540)
Capital appropriations Capital gifts and grants Additions to permanent endowments 2,719,804 Other additions, net Extraordinary item - loss on impairment of capital assets -
Increase (decrease) in net assets (64,409,736)
Net assets at beginning of year 408,174,905
Net assets at end of year $ 343,765,169
27 Note A. 15 Component Units
Each component unit should provide the following:
Note A. 15 Component Units
1. A t)rief description of the component unit.
The LSU Foundation is ategally separate, tax-exempt organization supporting the LSU System, specifically the following campus: Baton Rouge. This foundation was included in the universrt/s finanda} statements because its assets equaled 3% or more of the assets of the university system it supports.
During the year ended June 30, 2009, the LSU Foundation made distributions to or on behalf of the untverstty for both restricted and unrestricted purposes in the amount of: $ 21.625.682
Complete financial statements for the LSU Foundation can t>e obtained from:
3838 West Lakeshore Drive. Baton Rouge, LA 70808 (mailing address) or from the foundation's website at:
The LSU Fourvdation is a nonprofit organization that reports under FASB standards, including FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition crfteria and presentation features are different from GASB revenue recognition criteria and presentation features. Wrth the exception of necessary presentation adjustments, no modifications trave t>een made to the fourvJation's financial information in the urwersity's financial report forthese differences.
28- PI 1- V 8 $ ST s ^1
•»
I • ' ' 1 S 8' (30,996 )
i
• I • • ' ' . 3§ 8 ^ 8 8 S §1
1 si 1 .|1 to s 11 §s C £• ?-
KTT 11
5 rt S 8 C 8" § I i to -- *tf ss §S
SI h- ^ CM m c 8 a r» p o ?S Ef 8" in n
I ^ 3 NotB I. Bonda A notes payable & capital teaset.
Campuses and component units complete tfie appropriate section.
System YeerewhrtJimeaOiMW Bounce Branca at Amounts June30t June 30, tkiewWifn 200S AddWons 2009 onev«v Notes t bomti payibia: Holaspayabia $_ %_ _*. t - Bonds payaUa TotBl boncto and nocea payabte - . -
OliMrldillKfu: Compenulad abMnns poyeUe Capital kaaoo oUoaliont . Ctams and KjgaliDn payddv - AmcxMiistmklnQatodftoraOmn - Contracts peyaUa RMnfauiamflnf ccntracts payaUa - OPEBPayMite Total othvliflMiits - - • - - Total iDn(H«nn bab«iM s S - s ^ E . -
fitslance BataiKvat Anmaite Co mponenl Units Jufwao. June 30, due within 2000 AdtWone ReductiORS 2009 Mieyav
Notu K bonds paydb)*: 5_ J_ _S i Notes payMito Bonds poyabto 8.7&5,00O , 630.000 8.155,000 628.395 8(785.000 630.000 8,155.000 628,395 Total bonds and notes psyabte - ' • C»wr BafaimM: Cornpsnealed absonc«s poyaUv 233.157 - _ 4,539 226.618 228,618 Ctv«al lesM cUgHtara . - Ctaims and idgatian peysUe . , . - Amotrts hatd h custody tor olhan 85,702.465 _ 1.123.46B 84,579.017 8.266.347 Contracts pa>abla R«fnburs«nwil contracts p^abto - - Other EeMUes 6.061.300 0.061,300 6,061.300 Total oirier iabiWM 92,016,M2 1.128.007 90.888,935 14,576.265 . H • Total tontHerm I S 100,601.942 i" 1,758,007 % 99,(H3,9a5 t 15,204,660
Balance Balance al Amounts CorrUned Total JunmiO. June 30. duewtlhin 2008 Addiltons 200» one year
Notm C bonds payaUs: f_ $_ S NotMpayabls Bonds payable 6,765.000 - - • 630,000 8,156,000 628.395 Totri bonds ml notes payable 8.765,000 " 630.000 8.1S5.000 628.395 Other CabWtlca: Compensated atMerKes payable 233.157 4,539 228,618 228,618 Capiat teaseobfigetor a , . Clanu and RiQalun payable . - - . Arnotnts held h cuskxjy tor ottiors 85.702.465 1.123.468 84.579,017 8.266,347 CortrtcU payable - - Reimburaement contracts F>ayab)e . - . . OPEBPayabb . . . . Otharl 6.061.300 . 6.081.300 6.061,300 Totdi 92.016.942 1.126,007 90888.935 14.576,265 Total bn^4enn iabHies »_ 100.801.942 »_ $ 1.758,007. , 99,043.935 15,204.660
(Sofld OSRAP a copy of Ui» amortization 8Ch«ilulo for any new debt (ssiied.)
30 Note P. Capital teases
Campuses and component units complete the appropriate section.
Does your campus record Items under capital leases as an asset and an oblibation Yes/No in the accompanying financial statements? N/A
Report all capital leases Onduding LA Equipment Acquisition Fund [LEAF] leases) in effect as of 6/30/2009.
UNIVER5ITYSYSTEM CAPITAL LEASES Gross Remaining Remaining amount of Last interest to prir>cipat to Date of leased assets payment end of end of Nature of lease lease (historical cost) date lease lease a. Office space N/A $ $ b. Equipment N/A c- Land N/A d. Buildings N/A Total assets under cap. tease
COMPONENT UNIT CAPITAL LEASES Grass Remaining Remalnir>g amount of Last interest to principal to Date of leased assets payment end of end of Nature of lease lease (historical cost) date lease lease a. Office space N/A $ b. Equipment N/A c. l^nd N/A d. Buildings N/A Total assets under cap. lease
31 Note P. Lease Payments
Campuses and component units complete the appropriate column
The following is a schedule by years of future minimum lease payments under capital leases together with the present value of the net minimum lease payments as ot June 30, 2009.
Note: This schedule is not applicable to LSU Foundation,
Year ending June 30: Future minimum lease payment University/System Component Units: Total: 2009 $ $ $ : 2010 : 2011 : 2012 : 2013 : 2014-2018 :^ 2019-2023 2024-2028
Total minimum lease payments Less: amounts representing executory costs Net minimum lease payments Less: amounts representing interest Present value - net minimum lease payments
Note: If lease payments extend past FY2028 create additional rows and report these future minimum iease payments in five year increments. IVe added three rows for you just in case you need them. You may need to add more.
32 Note P. Lessor Direct Financing Leases
Campuses and component units complete the appropriate section
Minimum lease Remaining Remaining University/System payment interest to principal to Composition of tease Date of lease r€ceivab}e end of lease end of lease a. Office Space N/A $ b. Equipment N/A c. Land N/A
Less amounts representing executory costs Minimum lease payment receivable Less allowance for doubtful accounts Net minimum lease payments receivable Estimated residual values of leased property
Less unearned income Net investment in direct financir^ leases
Minimum lease Remaining Remaining Component Unit(s) payment interest to principal to Composition of lease Date of lease receivable end of lease end of lease a. Office Space N/A b. Equipment N/A c. l^nd N/A
Less amounts representing executory costs Minimum lease payment receivable Less allowance for doubtful accounts Net minimum lease payments receivable Estimated residual values of leased property
Less unearned income Net investment in direct financing leases
Minimum lease payments do not include contingent rentals, which may be received as stipulated in the lease contracts. Contingent rental payments occur if, for example, the use of the equipment, land, or building etc., exceeds a certain level of activity each year. Contingent rentals received for fiscal year 2009 were: N/A for office space N/A for equipment N/A for land
33 Note P. Future Minimum Lease Receivables
Campuses and component units complete the appropriate column
Note: This schedule Is not applicable to LSU Foundation.
The following is a schedule by years of minimum lease receivable for the remaining fiscal years of the lease as of June 30,2009:
Year ending : Future minimum lease receivables: UnivefSitv/Svstem Component UnWsl lolaj 2009 $ $ $ 2010 2011 2012 2013 2014-2018 2019-2023 2024-2028
Total
Note: If lease receivables extend past FY2028 create additional ^o^Ars and report these future minimum lease receivables in five year increments. I've added three rows for you just in case you need them. You may need to add more.
34 Note T. Prior Year Restatement of Net Assets
Campuses and component units complete the appropriate section
The fdlovwng adjustments were made to restate beginning net assets for July 1. 2008.
University/System Component Unit (s) Total
Ending net assets 6/30/08 as reported to OSRAP on PYAFR $ $ 408.174.905 $ 408.174.905
Adjustments to endirtg net assets 6/30/08 (after AFR) was submited to OSRAP (+ or -) - - Total $ - $ 408.174.905 $ 408.174.905 Restatements (adjustments to beg. Balance 7/1/09) (+or-) -
Beginning net assets 7/1/2008, as restated $ - $ 408.174,905 $ 408,174.905
Explanation: (List below)
Total
Each adjustment must be explained in detail
NOTE: Net Assets at July 1, 2008, previously reported, must correspond to Net Assets at June 30, 2008 per infomnation received from OSRAP.
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Q UJ X o en SCHEDULE 1-B COMPONENT UNIT
STATE OF LOUISIANA
Put Componont Unit Name Here
SCHEDULE OF REIMBURSEMENT CONTRACTS PAYABLE June 30,2009
Principal Prfnc^l Interest DatBof Original Outstanding Issued Outstanding interest Outstanding Issue Issiw Issue 6/30rt)8 (Redeemed) mom' Rates 6mm N/A WA N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A H/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ttIA H/A WA N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A WA KfA N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 5 5 ' * 5
' Note: Principal outstanding at 6/30/06 should agree to Contracts Payable on the Statement of Net Assets.
Send copies of new amortization schedutes
SCHEDULE 1-B (Component Unit)
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D) O II o _§ O T3 Q) w E LU B 00 3 o> < €9^ < >» > z CO < < £^ a. I CO 2 CO ^ en c 3 ¥ ujg R OO o c &"i E CO —1 3 If § o u_ ^8 O O 0) o ro o to fe? ^ «^ O lii •4^ a 3 © «/> 5. (0 CO 3 O S CO (O OJ 3 o c o n CO UJ > n CD C3J O ,C T3 C CO S (0 o o 2 o O 3 •o O o c I o tu •D c C 3 3 •a o u. 8 o o •D (0 «o^ CO Schedule 2-A COMPONENT UNIT LSU Foundation Schedule of Bonds Payable Amortization for the Year Ended June 30, 2009 Fiscal Year Ending Principal Interest Total 2010 628,395 138,064 766,459 2011 628,395 127,425 755,820 2012 628,395 116,786 745,181 2013 628.395 106,148 734,543 2014 628,395 95.509 723,904 2015 628,395 84.870 713,265 2016 628,395 74,232 702.627 2017 628,395 63,593 691,988 2018 628,395 52,954 681,349 2019 628.395 42,316 670,711 2020 628,395 31,677 660,072 2021 628.395 21,038 649,433 2022 614,260 10,399 624.659 2023 0 2024 0 2025 0 2026 0 2027 0 2028 0 2029 0 2030 0 2031 0 2032 0 2033 0 2034 0 2035 0 2036 0 2037 0 2038 0 TOTAL $8,155,000 $965,011 $9,120,011 List tfie tenns by wtiich interest rate changes for variabte-rate debt Interest is pakJ using a weekly rate as determined by the rennarketing agent The interest rate at June 30, 2009 was 1.68%. The bonds are collateraBzed by future revenues of the FourxJation. Schedule 2-A (Component Unit) 39 Schedule 2-B COMPONENT UNIT LSU Foundation Schedule of Notes Payable Amortization for the Year Ended June 30, 2009 Fiscal Year Ending Principal Interest Total 2010 N/A N/A N/A 2011 N/A N/A N/A 2012 N/A N/A N/A 2013 N/A N/A N/A 2014-2018 N/A N/A N/A 2019-2023 N/A N/A N/A 2024-2028 N/A N/A N/A 2029-2033 N/A N/A N/A 2034-2038 N/A N/A N/A TOTAL $0 $0 $0 List the terms by \*^ich interest rate changes for variable-rate debt: Schedule 2-B (Component Unit) 40 Schedule 2-C Component Unit LSU Foundation SCHEDULE OF CAPITAL LEASE AMORTIZATION For the Year Ended June 30, 2009 Fiscal Tear Beginning Ending Balanca Paysiant Interest Principal Balance 2010 N/A N/A N/A N/A N/A 2011 M/A N/A N/A N/A M/A 2012 N/A N/A N/A N/A M/A 2013 N/A M/A N/A N/A N/A 2014-2018 N/A N/A N/A N/A N/A 2019-2023 N/A N/A N/A N/A N/A 2024-2028 N/A N/A N/A N/A N/A 2029-2033 N/A N/A N/A N/A N/A 2034-2038 N/A N/A M/A N/A N/A TOTAL List the tertns by which interest rate changes for variable-rate debt Not applicable. Schedule 2-C (Component Unit) -41 Schedtilft 2-D Component Onit LSD Foundation Schedule of Reimburseinent Contracts Payable Aniortization for the Year Ended June 30, 2009 Fiscal Year Ending Principal Interest 2009 N/A N/A 2010 N/A M/A 2011 N/A M/A 2012 N/A M/A 2013 N/A N/A 2014 M/A M/A 2015 N/A N/A 2016 N/A N/A 2017 N/A N/A 2018 N/A N/A 2019 N/A N/A 2020 N/A M/A 2021 N/A N/A 2022 N/A N/A 2023 N/A N/A 2024 N/A M/A 2025 N/A N/A 2026 M/A N/A 2027 N/A N/A 2028 N/A N/A 2029 N/A N/A 2030 N/A N/A 2031 N/A M/A 2032 N/A M/A 2033 N/A M/A 2034 N/A N/A 2035 N/A N/A 2036 N/A N/A 2037 N/A N/A 2038 N/A N/A TOTAL $0 $0 List the terms by which interest rate changes for variable-rate debt Not applicable. Schedule 2-D (Component Unit) 42- System Office Note 17: Restricted Not Assets - Component Units Please report the composition of your restricted assets. If none, please Indicate so on the form. Tiger UNO Pennington LSU Athletic R & T Medical HSC N.O. Foundation Foundation Foundation Foundation Foundation Temporarily restricted: Chairs and professorships 17,778.171 Scholarships and fellowships 12.774,793 Specific academic and research projects 17.008.384 Academic support 33.797,878 Capital outlay and improvements 29.212.027 Research support 4.286,562 Institutional support 9.790.672 Faculty - salary supplements Dorror restrictions Restricted contritmtions receivable Restricted accounts payable Buifding funds Educational studies program Total temporarily restricted 124.648.487 Penmanentty restricted: Chairs and professorships 102.186.241 ... ^^ v; ^ \r^' ''^' ' ' ^'""'-''^ Scholarships and fellowships 45.966.489 ^' '-' - - \ ^^-' ^' ^ , '>" ] .14 Specific academic and research projects 21,979,358 ^ "'^ ^ ' ' ^'^^^ V. ^' -'^^<-'- Academic support 16.198.541 . '_^ J'^; ,,'("' .V >> -^ »- "'-<"', "^ '*.-,<'.t ^ f ' , ' Capital outlay and improvements 185,448 Research support 1.729.565 Institutional support 774,407^ ^^-7'^^^; ^^.-l.';^; -x:^-:^ Endownfient Funds <,.'-.'? Educational studies program Faculty - salary supplements Total permanently restricted 189.020.049 43- System Note 25. Cooperative Endeavor Agreements - Component Units Below is the language induded in the FY Dd finaiwial statements regarding significant cooperative endeavor agreements entered into by your foundation. Please carefully review and update as necessary the portion that applies to your foundation. If your foundation discloses a cooperative endeavor agreenwnt in its financial report please mclude the disclosure in the second text box below. LSU FoundatiQiT Not applicable. -44 System Note 26. Amounts Held in Custody for Others - Component Units Shown are the amounts reported for FY 09. Please update for your Foundation for FY 09 (or year ending 12/31/09) LSU Health UNO Tiger Sciences Research and PenninKtoo LSU Athletic Center Technology Medical Enthv Foundation Foundation' Foundation Foandation Foundation* Total LSU w AfcXMdria FouDdarion 10,077336 ', ;r V'^^^^l 10.077.336 LSU at Eunice Foimdatiai 1,519.864 1.519.864 Stale iDBlching fiiods 61.786.912 J 1' :-'^^^"'''' ^i-^:-, 61.786.912 Split-iDlerest igreemcnts 1.916,264 ..*..-,;„ i- J u . - ->^'->', 1,916.264 Tiger Atfiletic Foundation 4.239.911 •I' ' ' /- < 4;i39.9n Coaches esaow BCXCWDIS - ^r .^ ;* ) ^ •• J, 1 - Vinous •ffiUotoJ organtzatioDS - , ^ ^'-:- < "Hr> ^« - BnildiDg lenaat security deposiu -t ^ - - '' ^ •'' - Total temporarily testrided $79^40.287 $0 SO SO $0 179.540.287 •AsofDec«Hiba31,2009 45-