UNIVERSITY OF LOillSIANA MONROE Jj'QUNDATION Foundation FINANCIAL REPORT FOR THE YEARS ENDED JUNE 30, 2019 AND 2018 UNIVERSITY OF LOUISIANA MONROE FOUNDATION INDEX Independent Auditors' Report .......................................................................................... 1 Statements ofFinancial Position...................................................................................... 3 Statements of Activities and Changes in Net Assets............. ....................... .. .................. 4 Statements of Functional Expenses .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .... ... .. .. .. .... .. .. .. .. .. .. .... .. .. 6 Statements of Cash Flows . .. .. .. .. .. 7 Notes to Financial Statements .. .................................... .................................................... 8 Schedule 1 - Analysis of Endowed Principal Funds- Fair Market Value Basis ... .......... 30 Schedule 2- Analysis of Endowed Operating Funds- Fair Market Value Basis........... 37 Schedule 3 -Analysis of Agency Endowment Accounts- Principal-Fair Market Value Basis . .. .. ...... ........... ......... ..... .. .. .. .... .. .. .. .. .......... .. .. .. .. .. .. .. .... .. .... ..... 44 Schedule 4-Analysis of Agency Endowment Accounts - Operating- Fair Market Value Basis................................. ...... ... ...... .......... ....................................... 47 Schedule 5-Analysis of Funds with Donor Restrictions- Departmental- Fair Market Value Basis.................................................................... .. ........ ...... ............. 50 Schedule 6 -Analysis of Funds with Donor Restrictions- Scholarships- Fair Market Value Basis .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. ..... .. .. .. 56 Schedule 7-Analysis of Funds with Donor Restrictions- Loans- Fair Market Value Basis........................................................... ...................................... 58 David Ray Soignier, CPA, MBA, CGMA HuFFMAN & SoiGNIER Lori Woodard, MBA, CPA. CGMA, CITP Francis I. Huffman, CPA (A PROFESS IONAL A ccouNTING C oRPORATION) John Herman. CPA CERTIFJED PuBLIC A c couNTANTS Lynn Andries, CPA, CGMA Esther Atteberry, CPA Katie Jacola. CPA INDEPENDENT AUDITORS' REPORT Board of Trustees University of Louisiana Monroe Foundation We have audited the accompanying financial statements of the University of Louisiana Monroe Foundation (a nonprofit organization - the Foundation) which comprise the statements of financial position as of June 30, 2019 and 2018, and the related statements of activities and changes in net assets, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1100 North 18th Street, Suite 200 Monroe. Louisiana 71201 Tel: (318) 387-2672 • Fa x: (318) 322-8866 • Website: www.afullservicecpafirm.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS University of Louisiana Monroe Foundation Independent Auditors' Report Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of June 30, 2019 and 2018 and the changes in its net assets and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion on the fmancial statements as a whole. The information identified in the accompanying Index as Schedules 1-7 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the fmancial statements or to the fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the fmancial statements as a whole. Emphasis ofMatter As discussed in Note 1 to the financial statements, the Foundation adopted Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958), Presentation ofFinancial Statements of Not-for-Profit Entities, in the current year related to the presentation of the financial statements. Our opinion is not modified with respect to this matter. 2 UNIVERSITY OF LOUISIANA MONROE FOUNDATION STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2019 AND 2018 ASSETS As of June 30 2019 2018 Current Assets Cash and Cash Equivalents $ 1,296,474 $ 403,876 Receivables Receivables 39,436 11 ,190 Pledges Receivable- Current Year (Note 2) 755,634 904,073 Total Receivables 795,070 915,264 Other Current Assets Prepaid Expenses & Other Current Assets 4,861 200 Total Current Assets 2,096,405 1,319,340 Noncurrent Assets Property and Equipment Land (Note 3) 5,716,149 5,716,149 Office and Farm Equipment 235,208 255,552 Buildings 476,884 476,884 Construction in Progress 1,472,481 1,446,438 Less: Accumulated Depreciation (589,933~ {556,712~ Net Property and Equipment 7,310,789 7,338,311 Investments Held By Trustees Bank Trusts (Note 4) Cash and Cash Equivalents 1,803,254 1,821,194 Other Investments 59,903,607 57,210,366 Total Investments Held By Trustees 61,706,861 59,031,559 Other Assets Other Securities 163,845 165,540 Art and Collectibles (Note 6) 135,608 135,608 Pledges Receivable- Long Term (Note 2) 970,077 1,111 ,791 Total Other Assets 1,269,530 1,412,939 Total Noncurrent Assets 70,287,1 80 67,782,809 TOTAL ASSETS $ 72,383,585 $ 69,102,149 LIABILITIES Current Liabilities Accounts Payable- Trade $ 56,140 $ 234,803 Accounts Payable - University of Louisiana Monroe 237,859 146,379 Construction in Progress - Retainage 2,850 69,700 Gift Annuity Liability (Note 7) 78,687 78,687 Deferred Revenue 400,000 0 Other Liabilities 9,719 22,860 Total Current Liabilities 785,255 552,429 Noncurrent Liabilities Funds Held For Others 633,978 573,671 Gift Annuity Liability (Note 7) 487,794 510,339 Funds Held As Agent (Note 8) 31,824,618 29,831,463 Total Noncurrent Liabilities 32,946,390 30,915,474 TOTAL LIABILITES $ 33,731,645 $ 31 ,467,903 NET ASSETS Without Donor Restrictions $ 12,456,757 $ 11,739,156 With Donor Restrictions 26,195,183 25,895.090 TOTAL NET ASSETS 38,651,940 37,634,246 TOTAL LIABILITIES AND NET ASSETS $ 72,383,585 $ 69,102,149 The accompanying notes are an integral part of these financial statements. 3 UNIVERSITY OF LOUISIANA MONROE FOUNDATION STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2019 Without -------------- With Donor Restrictions ---- - ----- Donor Departments & Endowment Endowment Rest rictions Scholarships Loans Income Principal Total SUPPORT, REVENUES AND GAINS Support Cash Contributions $ 11 8,369 1,866,047 36,302 1,312,762 3,333,480 Noncash Contributions 18,328 122,709 141 ,037 Total Support 136,697 1,988,756 36,302 1,312,762 3,474,517 Revenues and Gains Interest, Dividends, and Royalties 258,297 620,674 878,971 Farm and Lease Income 143,097 143,097 Gain/(Loss) on Investments 259,937 6 626,826 886,769 Service Charges Eamed 808,884 808,884 Change in Value of Split-interest Agreements 22,545 22,545 Other 104,345 74,144 1,720 2,905 183,114 Total