University of Puerto Rico

Statements of Net Assets

June 30
2008 2007
Assets
Current assets:
$ $
Cash and cash equivalents 19,167,865 49,595,830
Investments at fair value 56,187,238 64,851,571
Investments with bond trustees at fair value 54,485,622 58,233,345
Accounts receivable (less allowances for doubtful
accounts of $132,409,296 and $106,514,050
for 2008 and 2007, respectively) 158,213,051 159,522,765
Due from Commonwealth of Puerto Rico 7,570,127 8,155,254
Inventories 3,798,653 4,882,571
Prepaid expenses and deferred charges 574,677 7,009,890
Total current assets 299,997,233 352,251,226

Noncurrent assets:
Restricted cash and cash equivalents 5,826,799 4,544,892
Investments at fair value 220,733,646 237,177,724
Due from Commonwealth of Puerto Rico 89,200,262 76,077,255
Prepaid expenses and other assets 42,628,122 13,772,652
Notes receivable, net 2,344,355 2,720,096
Capital assets (net of accumulated depreciation of
$441,681,276 and $411,324,335
for 2008 and 2007, respectively) 834,398,195 796,685,602
Total noncurrent assets 1,195,131,379 1,130,978,221
Total assets 1,495,128,612 1,483,229,447

Liabilities
Current liabilities:
Accounts payable and accrued liabilities 93,117,021 85,079,562
Current portion of long-term debt 21,455,000 19,760,000
Obligation under capital lease, current portion 1,063,344 2,178,105
Other current liabilities 28,800,535 26,019,842
Total current liabilities 144,435,900 133,037,509

Noncurrent liabilities:
Long-term debt, net of current portion 652,511,547 656,019,072
Obligation under capital lease, noncurrent portion 68,649,242 68,597,825
Other long-term liabilities 203,509,858 198,855,169
Total noncurrent liabilities 924,670,647 923,472,066
Total liabilities 1,069,106,547 1,056,509,575

(Continues)

0901-1022705
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 University of Puerto Rico
Statements of Net Assets (continued)

Net assets
Invested in capital assets, net of related debt 231,026,259

39,560,872
Research
3,765,154
Restricted, expendable:
Research 20,946,073

Capital projects 24,791,044

Other 11,190,537
(922,781)
Total net assets $ 426,719,872

See accompanying notes.

0901-1022705
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 275,018,751
Restricted, nonexpendable:
Scholarship and fellowships 42,774,078
18,942,504 19,080,230
Other 3,730,103

18,659,467
Loans 7,948,550 7,685,906
1,948,575
Debt service 51,875,735 56,233,963
6,047,083
Unrestricted 12,439,834
$ 426,022,065
 University of Puerto Rico
Statements of Revenues, Expenses and Changes in Net Assets

June 30
2007
Revenues
Operating revenues:
Tuitions and fees (net of scholarship allowances of $41,390,629
and $37,277,970 for 2008 and 2007, respectively) 49,269,042

Federal grants and contracts 125,667,791

22,741,356
Nongovernmental grants and contracts
4,316,666
Auxiliary enterprises (net of scholarship allowances of $159,257
and $162,750 for 2008 and 2007, respectively) 7,157,572

Total operating revenues 286,267,487

Operating Expenses
Salaries:
Faculty 377,460,983

Nonexempt wages
218,195,408
Scholarship and fellowship

Supplies and other services 149,551,732

Other expenses 17,879,437

Operating loss (980,255,878)

Nonoperating revenues (expenses):

Commonwealth appropriations 896,492,596

Gifts 6,461,769

Interest on indebtedness (20,812,346)

Net nonoperating revenues

21,144,843

Capital appropriations 12,607,556

(Decrease) increase in net assets 40,590,712

Net Assets
Beginning of year 386,129,159

See accompanying notes.

0901-1022705
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 2008

$ 51,286,439 $
Net hospital patient services and other 48,665,826 48,669,981
128,404,162
Commonwealth grants and contracts (net of allowances of $6,895,713
and $4,985,386 for 2008 and 2007, respectively) 12,060,361
13,329,915 14,753,879
Sales and services of educational departments 5,379,271

5,923,312
Other operating revenues 13,227,809 13,691,200
278,277,095

396,824,902
Exempt staff 284,370,248 272,900,601
1,111,335 1,656,715
Benefits 230,017,087
160,492,568 150,573,298
Utilities 49,147,600 44,530,281
160,098,118
Depreciation 37,125,069 33,774,910
32,096,640
Total operating expenses 1,351,283,567
(1,073,006,472)

935,880,735
Federal Pell Grant program 121,234,272 109,492,991
6,279,553
Net investment income 4,774,072 9,116,461
(18,607,741)
Other nonoperating revenues 2,482,159 649,250
1,052,043,050
(Loss) income before other revenues (20,963,422)

17,576,892
Additions to term and permanent endowment 2,688,724 6,838,313
(697,806)

426,719,871
End of year $ 426,022,065 $ 426,719,871
 University of Puerto Rico
Statements of Cash Flows

2008 2007
Cash flows from operating activities
Tuition and fees 50,867,832 $
142,566,272
Pell grants 109,492,991
48,665,826
Auxiliary enterprises 6,857,754

Payments to suppliers and vendors (176,721,917 (63,480,929)

)
Payments for utilities (44,044,748)
(49,147,600)
Payments for scholarships and fellowships (150,677,612)
(160,492,568
Student loan repayments
) (30,361,913)
Net cash used in operating activities
1,166,043
Cash flows from noncapital financing activities
Commonwealth appropriations 896,492,595
(912,763,263
Gifts and grants for other than capital purposes
)
910,441,927
Cash flows from capital and related financing activities
935,880,735
Capital appropriations
2,688,724
(172,561,024)
Principal paid on indebtness 942,469,288
(20,812,346)
Deposit with trustee
17,576,892 (70,775,930)
Proceeds from capital debt (76,453,802)
(59,250,865)
(18,607,741)
Cash flows from investing activities
3,747,723
Proceeds from sales and maturities of investments
(228,742,925)
Interest on investments (88,734,566)
(183,567,503)
Net change in cash and cash equivalents
Cash and cash equivalents: (22,423,645)
Beginning of year
4,774,072
$
(29,146,058) (Continues)

54,140,722

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 Year Ended June 30

$ 49,253,880
Grants and contracts 157,423,396
121,234,272
Patient services 48,669,981
5,926,805
Sales and services educational departments and other 18,607,080 4,358,816

Payments to employees (682,306,485) (651,271,784)

Payments for benefits (230,017,087) (140,576,178)

New loans issued to students (773,384) (1,297,397)

1,046,166
Other payments (2,338,352)
(704,607,577)

Endowment gifts 6,838,313

3,899,829 7,111,019
Net cash provided by noncapital financing activities

12,607,555
Additions of capital assets
(20,355,173) (292,474,805)
Interest paid on capital indebtness
(19,117,090)
Capital lease (1,063,344)
6,420,879 503,882,775
Net cash used in capital and related financing activities

47,532,056 36,058,961
Purchase of investments
9,116,461
Net cash provided by (used in) investing activities 29,882,483
(36,984,018)

91,124,740
End of year $ 24,994,664 54,140,722
 University of Puerto Rico
Statements of Cash Flows (continued)

Year Ended June 30

2008

$ (1,073,006,472)

37,125,069

(11,228,166)
(21,336,339)
15,472,841
Accrued salaries and wages and other liabilities 135,730,221
$ (912,763,263) (704,607,577)

Reconciliation of operating loss to net cash used in

operating activities
Operating loss
Adjustments to reconcile operating loss to net cash used
in operating activities:
Depreciation
Reduction of capital assets
Amortization on bond premium, discount and future
appreciated principal
Changes in assets and liabilities, net:
Grants and contracts receivables
Prepaid expenses, inventories and other
Accounts payable, accrued liabilities and capital lease

Net cash used in operating activities

See accompanying notes.

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