Note 17 – Discretely Presented Component Units

Summary financial information as of and for the years ended June 30, 2018 and 2017, for the University’s CU Foundation are presented in Table 17.1.

Table 17.1. CU Foundation Summary Financial Statements (in thousands)

CONDENSED STATEMENTS OF NET POSITIONFor the Year Ended June 30
20182017
Assets
Current assets
Cash and cash equivalents$29,86126,013
Contributions receivable, net28,85331,934
Other current assets724539
Total current assets59,43858,486
Noncurrent assets
Contributions receivable, net151,08090,994
Investments1,847,5501,689,100
Assets held under split-interest agreements42,57342,750
Beneficial interest in charitable trusts held by others8,4068,017
Capital assets, net1,4351,583
Total noncurrent assets2,051,0441,741,450
Total Assets$2,110,4821,799,936
Liabilities
Current liabilities
Accounts payable$390480
Accounts payable - University4,83213,295
Liabilities under split-interest agreements2,6192,604
Custodial funds16,66015,719
Total current liabilities24,50132,098
Noncurrent liabilities
Funds held in trust for others2,2932,115
Liabilities under split-interest agreements20,31921,060
Custodial funds418,292379,744
Total noncurrent liabilities440,904402,919
Total Liabilities$465,405435,017
Net Position
Net investment in capital assets$1,4351,583
Restricted for nonexpendable purposes606,413546,822
Restricted for expendable purposes970,306847,611
Unrestricted66,92359,897
Total Net Position$1,645,0771,455,913
CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Operating revenues
Contributions$248,613188,221
Other revenue4,1863,779
Total operating revenues252,799192,000
Operating expenses
Institutional support
Gifts and income distributed to University166,739139,451
Administrative4,7574,229
Advancement support to the University21,57920,749
Depreciation and amortization148158
Total operating expenses193,223164,587
Operating Income59,57627,413
Nonoperating revenues (expenses)
Investment income129,588156,572
Increase in Net Position189,164183,985
Net Position, beginning of year1,455,9131,271,928
Net Position, End of Year$1,645,0771,455,913
CONDENSED STATEMENTS OF CASH FLOWS
Net cash flows provided by (used for)
Operating activities$(9,801)37,545
Non-capital financing activities44,64237,114
Investing activities(30,993)(83,339)
Net Increase (Decrease) in Cash and Cash Equivalents3,848(8,680)
Cash and cash equivalents, beginning of year26,01334,693
Cash and Cash Equivalents, End of Year$29,86126,013

During Fiscal Year 2017 CUREF was dissolved and its assets were transferred to CUPCO and the CU Foundation and the remaining activity is shown in Table 17.2. CUREF was a discretely presented component unit of the University, and CUPCO is a blended component unit of the University.

Table 17.2. CUREF Summary Financial Statement (in thousands)

CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Year Ended June 30, 2017
Operating revenues
Other revenue7,853
Total operating revenues7,853
Operating expenses
Institutional support
Gifts and income distributed to University3,489
Support services3,265
Depreciation and amortization775
Total operating expenses7,529
Operating Income324
Increase in Net Position324
Net Position, beginning of year(324)
Net Position, End of Year-
CONDENSED STATEMENTS OF CASH FLOWS
Net cash flows used for:
Operating activities(4,890)
Net Increase (Decrease) in Cash and Cash Equivalents(4,890)
Cash and cash equivalents, beginning of year4,890
Cash and Cash Equivalents, End of Year-

UNIVERSITY OF COLORADO FOUNDATION

Distributions made by the CU Foundation to the University were approximately $166,739,000 and $139,451,000 during the years ended June 30, 2018 and 2017, respectively. This amount has been recorded as University grant or gift revenue and the CU Foundation operating expense in the accompanying financial statements and does not include undistributed income on University endowments.

Since July 1, 2007, the University has contracted with the CU Foundation to manage a portion of its investments.  As of June 30, 2018 and 2017, respectively, $222,167,000 and $195,394,000 of non-endowed investments are being managed by the CU Foundation.

The University is the ultimate beneficiary of substantially all restricted and trust funds held by the CU Foundation and is income beneficiary of a significant portion of endowment funds held by the CU Foundation. In addition, the University contracts with the CU Foundation to manage its endowments. The University has endowments and other assets held by the CU Foundation approximating $206,143,000 and $196,327,000 as of June 30, 2018 and 2017, respectively.

The CU Foundation collected a one percent annual advancement support fee of $3,500,000 for both  years ended June 30, 2018 and 2017.  The CU Foundation paid the University $21,579,000 and $20,749,000 to help cover development costs for  the years ended June 30, 2018 and 2017, respectively, which is reported as other operating revenue.

As of June 30, 2018 and 2017, the University recorded an accounts receivable from the CU Foundation of $4,832,000 and $13,295,000, respectively. As of June 30, 2018 and 2017, the University recorded an account payable to the CU Foundation of $44,000 and $1,249,000, respectively.

© Office of University Controller 2018

This report must be considered in its entirety.