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Annual Financial Report
for the fiscal year ended August 31, 2009
A member of The Texas State University System
UNAUDITED
ANNUAL FINANCIAL REPORT
Fiscal Year Ended August 31, 2009
for
Texas State University-San Marcos (754)
A member of The Texas State University System
UNAUDITED
Texas State University-San Marcos (754)
Table of Contents
Page
Letter of Transmittal ………………………………………………………………………………………………….. 1
Organizational Data…………………………………………………………………………………………………… 2
Enrollment Data……………………………………………………………………………………………………….. 3
Proprietary Fund Financial Statements:
Statement of Net Assets …………………………………………………………………………………………. 6
Statement of Revenues, Expenses, and Changes in Net Assets…………………………………………………. 8
Operating Expenses Reported by Function……………………………………………………………………… 10
Statement of Cash Flows………………………………………………………………………………………… 12
Notes to the Financial Statements:
Notes:
1 – 26…………………………………………………………………………………………………………….. 16
Supplemental Supporting Information:
Schedules:
1A Expenditures of Federal Awards …………………………………………………………………………. 34
1B State Grant Pass-Throughs From/To State Agencies …………………………………………………….. 50
2A Miscellaneous Bond Information ………………………………………………………………………… 51
2B Change in Bonded Indebtedness …………………………………………………………………………. 52
2C Debt Service Requirements ………………………………………………………………………………. 53
2D Analysis of Funds Available for Debt Service…………………………………………………………… 54
2E Defeased Bonds Outstanding …………………………………………………………………………….. 55
2F Early Extinguishment and Refunding…………………………………………………………………….. 56
3 Reconciliation of Cash in State Treasury…………………………………………………………………. 57
Annual Financial Report – for the fiscal year ended August 31, 2009
UNAUDITED
Texas State University-San Marcos (754)
Organizational Data
UNAUDITED
Texas State University-San Marcos
Financial Reporting
BOARD OF REGENTS
OFFICERS
Ron Blatchley Chairman
Trisha S. Pollard Vice Chairman
MEMBERS
Name Member’s City (Texas) Term Expires
Charlie Amato San Antonio 2013
Kevin J. Lilly Houston 2015
Ron Mitchell Horseshoe Bay 2015
David Montagne Beaumont 2015
Michael Truncale Beaumont 2013
Greg Wilkinson Dallas 2011
Donna N. Williams Arlington 2011
William Patterson, Student Regent San Marcos 2010
TEXAS STATE UNIVERSITY SYSTEM – SENIOR ADMINSTRATIVE OFFICIAL
Charles R. Matthews Chancellor
UNIVERSITY ADMINISTRATION - KEY OFFICERS
Dr. Denise M. Trauth President
Mr. William A. Nance Vice President for Finance and Support Services
Mr. Terry R. Ondreyka Associate Vice President for Financial Services
Annual Financial Report – for the fiscal year ended August 31, 2009
2
UNAUDITED
Texas State University-San Marcos (754)
Enrollment Data
NUMBER OF STUDENTS BY SEMESTER
SUMMER TERM 2009
TYPE OF STUDENT FALL 2008 SPRING 2009 FIRST SECOND
Texas Residents 27,536 26,198 9,583 6,615
Out of State (Classified as Residents) 347 358 99 49
Out of State 305 267 104 68
Foreign 195 149 76 39
Children of Disabled Firemen or Peace Officers 3 2 0 0
Clinical Preceptors Exemption 0 1 0 0
Family & Consumer Science Alliance Agreement 7 0 0 0
Firemen - Fire Science Curriculum 0 1 0 0
Foster Care Students 32 27 11 9
Good Neighbor Scholarship Program 7 6 1 0
Grad Teaching Asst/Instructional Asst Fee Waiver 310 172 0 0
Hazelwood Act 240 239 129 76
High School Honor Scholarships 16 16 0 0
Louisiana Adjacent County 0 1 0 1
Mexico Pilot 5 5 2 0
National Student Exchange Program 17 11 0 0
New Mexico Adjacent County 12 9 5 1
Senior Citizens 3 2 3 1
Texas Commission for the Blind 21 19 8 5
Texas Rehabilitation Commission for the Deaf 42 38 23 18
Texas Tomorrow Waiver 5 5 0 0
Thesis 2 5 6 0
Totals 29,105 27,531 10,050 6,882
-27,518 25,911 9,598 7,107
ENROLLMENT TREND DATA
(Fall Semester)
SEMESTER
FISCAL YEAR STUDENTS HOURS
2009 29,105 346,144
2008 28,159 336,831
2007 27,518 326,779
2006 27,222 322,780
2005 26,827 314,520
2004 26,362 307,496
2003 25,049 292,249
2002 23,547 275,119
2001 22,460 264,111
2000 21,797 257,691
Annual Financial Report – for the fiscal year ended August 31, 2009
3
UNAUDITED
Texas State University-San Marcos (754)
Proprietary Fund Financial Statements
Annual Financial Report – for the fiscal year ended August 31, 2009
4
UNAUDITED
Texas State University-San Marcos (754)
Proprietary Fund Financial Statements
Annual Financial Report – for the fiscal year ended August 31, 2009
5
UNAUDITED
Texas State University-San Marcos (754)
Statement of Net Assets
ASSETS
Current Assets
Cash and Cash Equivalents:
Cash on Hand $227,576.06
Cash in Bank (Note 3) 18,431,440.64
Cash in Transit/Reimbursement from Treasury 6,838,940.32
Cash in State Treasury (Schedule 3) 20,243,980.41
Cash Equivalents 278,135,680.35
Legislative Appropriations 39,878,943.51
Net Receivables:
Federal Receivables (Note 24) 8,064,974.94
Interest and Dividends 665,960.96
Accounts Receivable 33,775,053.75
Gifts Receivables - Pledges 2,862,608.62
Loans and Contracts 2,101,977.57
Due From Other Agencies (Note 12) 1,608,997.19
Consumable Inventories 497,029.12
Merchandise Inventories 3,123,912.79
Other Current Assets 17,394,316.80
Total Current Assets $433,851,393.03
Non-Current Assets
Restricted:
Receivables $581,762.53
Gifts Receivables - Pledges 5,254,828.76
Loans and Contracts 321,996.65
Investments (Note 3) 103,872,676.70
Capital Assets, Non-Depreciable (Note 2)
Land and Land Improvements 33,491,566.52
Construction in Progress 126,410,369.87
Art and Historical Treasures 3,614,669.36
Capital Assets, Net of Depreciation (Note 2)
Buildings and Building Improvements 234,170,866.53
Infrastructure 9,350,478.13
Facilities and Other Improvements 17,203,067.17
Furniture and Equipment 32,117,065.40
Vehicles, Boats and Aircraft 1,771,452.79
Other Capital Assets 33,087,740.32
Total Non-Current Assets $601,248,540.73
Total Assets $1,035,099,933.76
LIABILITIES
Current Liabilities:
Accounts Payable $24,716,863.25
Accrued Payroll 10,535,620.36
Deferred Revenues 123,319,508.66
Due to Other Agencies (Note 12) 82,559.86
Employees' Compensable Leave (Note 5) 7,756,519.28
Capital Lease Obligations (Note 5 & 7) 16,415.33
Revenue Bonds Payable (Note 5) 540,000.00
Funds Held for Others 3,473,174.27
Other Current Liabilities 3,108,052.17
Total Current Liabilities $173,548,713.18
Annual Financial Report – for the fiscal year ended August 31, 2009
6
UNAUDITED
Texas State University-San Marcos (754)
Non-Current Liabilities:
Capital Lease Obligations (Note 5 & 7) $62,183.55
Liabilities:
Employees' Compensable Leave (Note 5) 3,625,598.69
Revenue Bonds Payable (Note 5) 1,410,000.00
Total Non-Current Liabilities $5,097,782.24
Total Liabilities $178,646,495.42
Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt $489,267,276.09
ASSETS
Restricted for:
Debt Retirement 3,399,929.03
Capital Projects 109,351,800.82
Retirement
Funds Held as Permanent Investments:
Projects
Non-Expendable 29,506,321.12
Expendable 3,106,131.45
Other 34,182,212.30
Unrestricted 187,639,767.53
Total Net Assets $856,453,438.34
See accompanying notes to the Basic Financial Statements.
Annual Financial Report – for the fiscal year ended August 31, 2009
7
UNAUDITED
Texas State University-San Marcos (754)
Statement of Revenues, Expenses and Changes in Net Assets
OPERATING REVENUES
Sales of Goods and Services
Tuition and Fees (PR - Chgs for Services) $189,209,299.02
Discounts and Allow ances (25,772,205.11)
Auxiliary Enterprises (PR - Chgs for Services) 62,737,572.10
Discounts and Allow ances (4,688,785.70)
Other Sales of Goods and Services 10,707,051.74
Federal Revenue-Operating (PR-OP Grants/Contributions) (Schedule 1A, Note 2) 14,347,118.18
Federal Pass Through Revenue (PR-OP Grants/Contributions) (Schedule 1A, Note 2) 5,625,259.71
State Grant Revenue (PR-OP Grants/Contributions) 4,265,831.60
State Grant Pass Through Revenue (PR-OP Grants/Contributions) (Schedule 1B) 17,915,188.02
Other Grants & Contracts (PR-OP Grants/Contributions) 5,183,982.92
Other Operating Revenue (PR-Chgs for Services) 363,840.86
Total Operating Revenues $279,894,153.34
OPERATING EXPENSES
Instruction $125,342,604.16
Research 20,249,765.79
Public Service 13,865,792.89
Academic Support 32,365,916.49
Student Services 9,864,354.83
Institutional Support 31,391,547.97
Operation and Maintenance Of Plant 30,250,929.80
Scholarship and Fellow ships 27,013,244.52
Auxiliary Enterprises 76,527,698.69
Depreciation and Amortization 26,287,944.03
Total Operating Expenses $393,159,799.17
Operating Income (Loss) ($113,265,645.83)
NONOPERATING REVENUES (EXPENSES)
Legislative Revenue (GR) $85,571,099.00
Additional Appropriations (GR) 17,690,591.33
Fed Grant - Non Exchange (Schedule 1A, Note2) 26,823,816.33
Gifts (PR-OP Grants/Contributions) 17,779,560.55
Pledged Revenues 1,797,233.71
Investment Income (GR) 4,882,236.00
Interest Expense and Fiscal Charges (93,333.34)
Gain (Loss) on Sales of Capital Assets (GR) (241,176.41)
Net Increase (Decrease) in Fair Value of Investments (GR) (2,886,131.98)
Other Nonoperating Revenues (Expenses) (PR-Charges for Services) 719,026.52
Total Nonoperating Revenues (Expenses) $152,042,921.71
Income (Loss) before Other Revenues, Expenses,
Gains, Losses and Transfers $38,777,275.88
Annual Financial Report – for the fiscal year ended August 31, 2009
8
UNAUDITED
Texas State University-San Marcos (754)
OTHER REVENUES, EXPENSES, GAINS
LOSSES AND TRANSFERS
HEAF Appropriation Revenue (GR) $20,258,248.00
Additions to Permanent and Term Endow ments 82,630.65
Transfers From Other Governmental Agencies (Note 12) 41,342,900.00
Transfers To Other Governmental Agencies (Note 12) (22,498,942.01)
Increase NA Interagency Transfer Capital Assets 86,611.00
Legislative Transfers-Out (Note 12) (11,724,358.71)
Legislative Appropriations Lapsed (1,568.29)
Total Other Revenue, Expenses, Gain/Losses and Transfers $27,545,520.64
CHANGE IN NET ASSETS $66,322,796.52
Net Assets, Beginning September 1, 2008 790,130,641.82
TOTAL NET ASSETS August 31, 2009 $856,453,438.34
See accompanying notes to the Basic Financial Statements.
Annual Financial Report – for the fiscal year ended August 31, 2009
9
UNAUDITED
Texas State University-San Marcos (754)
Matrix of Operating Expenses Reported by Function
Public Academic Student
Operating Expenses Instruction Research Service Support Services
Cost of Goods Sold $9,296.04 $7,083.40 $12,892.54
Salaries and Wages 92,141,279.95 $9,994,619.40 6,393,438.39 $19,600,919.94 5,307,438.86
Payroll Related Costs 22,493,962.10 2,011,161.25 1,657,620.54 4,720,757.45 1,447,206.15
Professional Fees and Services 1,537,345.81 3,098,308.08 3,156,800.95 1,325,109.23 1,212,140.95
Federal Pass-Through Expense (Sch 1A) 294,073.47 158,038.80
State Grant Pass-Through Expense (Sch 1B) 162,767.09
Travel 1,482,270.17 1,466,480.12 579,952.28 447,613.85 270,771.78
Materials and Supplies 6,270,727.39 2,494,875.84 1,143,182.12 3,090,174.03 993,638.08
Communication and Utilities 97,542.89 43,722.59 51,385.27 152,938.83 52,984.91
Repairs and Maintenance 399,095.85 132,372.88 34,719.08 2,008,758.05 44,256.14
Rentals and Leases 88,616.32 136,510.48 90,031.57 681,890.98 55,938.83
Printing and Reproduction 532,938.81 250,797.59 134,404.30 315,331.12 442,025.70
Depreciation and Amortization
Interest 2,225.87 147.90
Scholarships 287,256.32 322,925.54 290,993.93 14,925.49 23,782.01
Other Operating Expenses 2,272.51 1,692.68 5,375.17 7,349.62 1,278.88
Total Operating Expenses $125,342,604.16 $20,249,765.79 $13,865,792.89 $32,365,916.49 $9,864,354.83
See accompanying notes to the Basic Financial Statements.
Annual Financial Report – for the fiscal year ended August 31, 2009
10
UNAUDITED
Texas State University-San Marcos (754)
Operation and Scholarships Auxiliary Depreciation
Institutional Maintenance and Enterprise and Total
Support of Plant Fellowships Expenditures Amortization Expenses
$7,378,780.45 $7,408,052.43
$18,648,833.19 $9,489,012.43 $1,771,689.33 19,816,174.31 183,163,405.80
5,708,068.61 3,100,706.89 16,565.80 4,675,264.89 45,831,313.68
1,239,271.41 909,982.78 5,885.74 8,229,016.47 20,713,861.42
452,112.27
162,767.09
274,084.45 9,666.98 3,127.76 1,365,385.61 5,899,353.00
2,352,416.14 1,806,059.57 8,764.12 17,961,442.74 36,121,280.03
52,673.80 13,338,383.46 11,405,464.87 25,195,096.62
1,741,030.14 1,540,258.68 1,952,384.59 7,852,875.41
172,589.92 27,558.46 2,750.00 217,452.07 1,473,338.63
477,767.22 29,300.55 16.00 362,442.93 2,545,024.22
$26,287,944.03 26,287,944.03
9,203.57 11,422.97 23,000.31
693,986.95 25,204,445.77 3,152,433.79 29,990,749.80
21,622.57 33.00 39,624.43
$31,391,547.97 $30,250,929.80 $27,013,244.52 $76,527,698.69 $26,287,944.03 $393,159,799.17
Annual Financial Report – for the fiscal year ended August 31, 2009
11
UNAUDITED
Texas State University-San Marcos (754)
Statement of Cash Flows
Cash Flow s from Operating Activites
Receipts from Customers $10,707,051.74
Proceeds from Tuition and Fees 169,223,268.16
Proceeds from Research Grants and Contracts 17,156,028.68
Proceeds from Loan Programs 5,296,709.38
Proceeds from Auxiliaries 58,048,786.40
Proceeds from Other Revenues 40,495,526.65
Payments to Suppliers for Goods and Services (89,743,979.36)
Payments to Employees for Salaries (185,783,507.33)
Payments to Employees for Benefits (45,025,169.09)
Payments for Loans Provided (5,263,683.19)
Payments for Other Expenses (36,544,606.59)
Net Cash Provided (Used) by Operating Activities ($61,433,574.55)
Cash Flow s from Noncapital Financing Activities
Proceeds from State Appropriations $119,505,640.99
Proceeds from Gifts 24,621,268.25
Proceeds from Endow ments 82,630.65
Proceeds of Transfers from Other Funds 1,424,550.46
Proceeds from Loan Programs 27,542,842.85
Net Cash Provided by Noncapital Financing Activities $173,176,933.20
Cash Flow s from Capital and Related Financing Activites
Proceeds from Other Financing Activities $93,239.00
Proceeds from Debt Issuance 41,342,900.00
Payments for Additions to Capital Assets (86,177,052.17)
Payments of Principal on Debt Issuance (22,419,213.71)
Payments for Capital Lease (50,347.29)
Payments of Interest (12,415,774.51)
Net Cash Provided by Capital and Related Financing Activities ($79,626,248.68)
Cash Flow s from Investing Activities
Proceeds from Investment Income $1,511,100.16
Payments to Acquire Investments (72,557,391.67)
Net Cash Provided by Investing Activities ($71,046,291.51)
Increase (Decrease) in Cash and Cash Equivalents ($38,929,181.54)
Cash and Cash Equivalents, September 1, 2008 $362,806,799.32
Cash and Cash Equivalents, August 31, 2009 $323,877,617.78
Annual Financial Report – for the fiscal year ended August 31, 2009
12
UNAUDITED
Texas State University-San Marcos (754)
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating Income (Loss) ($113,265,645.83)
Adjustments to Reconcile Operating Income
to Net Cash Provided (Used) by Operating Activities:
Amortization and Depreciation $26,287,944.03
Operating Income and Cash Flow Categories
Classification Differences
Changes in Assets and Liabilities:
(Increase) Decrease in Receivables $8,639,051.25
(Increase) Decrease in Due from Other Agencies (1,203,892.06)
(Increase) Decrease in Inventories 226,809.13
(Increase) Decrease in Prepaid Expenses (5,282,164.41)
(Increase) Decrease in Loans & Contracts 37,191.43
Increase (Decrease) in Payables 12,777,456.05
Increase (Decrease) in Deferred Income 13,109,719.47
Increase (Decrease) in Compensated Absence Liability 808,212.95
Increase (Decrease) in Other Liabilities (3,568,256.56)
Total Adjustments $51,832,071.28
Liabilities
Net Cash Provided by Operating Activities ($61,433,574.55)
Non Cash Transactions
Net Decrease in the Fair Value of Investments ($2,886,131.98)
Donation of Capital Assets 5,983,628.64
See accompanying notes to the Basic Financial Statements.
Annual Financial Report – for the fiscal year ended August 31, 2009
13
UNAUDITED
Texas State University-San Marcos (754)
Notes To The Basic Financial Statements
Annual Financial Report – for the fiscal year ended August 31, 2009
14
UNAUDITED
Texas State University-San Marcos (754)
Notes To The Basic Financial Statements
Annual Financial Report – for the fiscal year ended August 31, 2009
15
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 1: Summary of Significant Accounting Policies
BASIS OF PRESENTATION
The accompanying financial statements of Texas State University–San Marcos (Texas State) have been prepared in compliance
with Texas Government Code Annotated, Section 2101.011, in accordance with the applicable requirements established by the
Comptroller of Public Accounts and Generally Accepted Accounting Principles (GAAP) as prescribed by the Governmental
Accounting Standard Board (GASB).
Financial reporting for the university is based on all GASB pronouncements, as well as Financial Accounting Standards Board
(FASB) Statements and Interpretations, Auditing Practices Board Opinions, and Accounting Research Bulletins issued on or
before November 30, 1989 that do not conflict with or contradict GASB pronouncements. FASB pronouncements issued after
November 30, 1989 are not followed in the preparation of the accompanying financial statements.
NATURE OF OPERATIONS
Texas State is a progressive university that serves the local, state, national and international communities by providing its
approximately 29,000 students with academic instruction. The university offers degrees in 101 undergraduate programs, 88
graduate programs, 8 doctoral fields and 1 professional field. Through research, instruction, and other activities that advance
essential knowledge and dissemination of that knowledge, the university serves the people of Texas and others throughout the
world.
REPORTING ENTITY
The financial reporting entity, as defined by GASB Statement No. 14, The Financial Reporting Entity, consists of the primary
government organizations for which the primary government is financially accountable and other organizations for which the
nature and significance of their relationship with the primary government are such that exclusion could cause the financial
statements to be misleading or incomplete.
Texas State is governed by the Board of Regents for The Texas State University System as a component unit. The Texas State
University System is a component of the State of Texas and is reported by the State of Texas in the proprietary fund.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The basis of accounting determines when revenues and expenses are recognized in the accounts reported in the financial
statements. Three primary financial statements are presented with supporting schedules: The Statement of Net Assets, the
Statement of Revenue, Expenses and Changes in Net Assets, and the Statement of Cash Flows. The accompanying statements
have been prepared using the economic resources measurement focus and accrual basis of accounting as prescribed in GASB
Statements 34/35. Under the accrual basis, revenues are recognized when earned and expenses are recognized when an
obligation has been incurred.
As an agency of the State of Texas, the financial records reflect compliance with applicable state statutes and regulations. The
university is reflected as a business type activity within the proprietary fund. All significant inter-agency transactions have been
eliminated. Business type activities are those that are financed in whole or in part by fees charged to external parties for goods
or services and focus on determining operating income, changes in net assets, financial position, and cash flows. Proprietary
funds distinguish operating from non-operating items.
RESTRICTED NET ASSETS
When both restricted and unrestricted net assets are available for use, restricted resources are generally used first, and then
unrestricted resources are used as they are needed.
Annual Financial Report – for the fiscal year ended August 31, 2009
16
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
USE OF ESTIMATES IN THE PREPARATION OF BASIC FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those
estimates.
A significant estimate for scholarship discounts and allowances is made by the university. Allowances are determined by using
the Alternate Method as issued by National Association of College and University Business Officers in the Advisory Report
2000-05. This method resulted in a total estimate of $30,460,990.81 for the university’s discounts and allowances related to
tuition and auxiliary enterprises.
CURRENT AND NON-CURRENT ASSETS
Current assets are those considered available for appropriation and expenditure within one fiscal year. Examples of expendable
financial resources include cash, various receivables, and short-term investments. All other assets are considered non-current.
CASH AND CASH EQUIVALENTS
For reporting purposes, this account includes cash on hand, cash in local banks, cash in transit, and cash in the treasury. Cash
equivalents are defined as short-term, highly liquid investments that are both: (a) readily convertible to known amounts of cash
and (b) so near maturity they present insignificant risk of changes in value due to changes in interest rates. Only investments
with an original maturity of three months or less are considered cash equivalents.
ACCOUNTS RECEIVABLE
The university’s accounts receivable primarily relate to tuition and fee charges to students and to auxiliary enterprise services
provided to students, faculty, and staff. Restricted receivable amounts, related to reimbursement of expenditures from various
federal, state, and private sources, are amounts pledged to the university by donors, net of allowances.
CONTRACTS AND GRANT AWARDS
Contract and grant awards are accounted for in accordance with the requirements of GASB Statements 34/35. Federal contract
and grant awards not collected as of fiscal year-end are reported as Federal Accounts Receivable on the Statement of Net
Assets.
INVESTMENTS
In accordance with GASB Statement No. 31, investments are reported at fair market value in the Statement of Net Assets. Fair
value is defined as the amount at which an investment could be exchanged in a current transaction between willing parties, other
than in a forced or liquidation sale.
INVENTORIES AND PREPAID ITEMS
Inventories include both merchandise inventories on hand for sale and consumable inventories. Inventories are valued at cost.
Payments made for services that will benefit periods beyond the current accounting period are recorded as prepaid items.
Prepaid scholarships represent funds paid in the current period relating to the following period.
The consumption method of accounting is used to account for inventories and prepaid items that appear in the Proprietary Fund
types. The cost of these items is expensed when the items are consumed.
Annual Financial Report – for the fiscal year ended August 31, 2009
17
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
CAPITAL ASSETS AND RELATED DEBT ACTIVITY
Capital assets include property, plant, equipment, infrastructure, and other assets. These assets are recorded at cost or, if not
purchased, at appraised fair value as of the date of acquisition. Capital additions, replacements, and major renovations that
increase the estimated useful life and the value of assets are capitalized. Routine repairs and maintenance are charged to
operating expense in the year in which the expense was incurred. In accordance with the State of Texas’ capitalization policy,
only fixed assets with a unit cost of $5,000 or greater are capitalized.
The university continues to advance its campus Master Plan which represents close to $700 Million in current and future
investments scheduled through fiscal year 2015. Related bonded indebtedness is issued by the Texas State University System
Revenue Financing System. System Administration and each component institution within the system are members of the
Revenue Financing System. Receipt of cash may or may not precede appropriation of bond proceeds. Subject to approval from
the university’s President, System Administration’s Chancellor and the Board of Regents through a board authorized
reimbursement resolution, the university may from time to time provide short-term financing for capital projects in advance of
bond proceeds. Assets created as a result of expenditures from bond proceeds, which are subsequently capitalized, are reported
on the applicable component institutions’ Statement of Net Assets and further detailed in Note 2, Capital Assets. The associated
bond liability is reported in total by System Administration. The university must repay the debt that was issued on its behalf and
debt service requirements attributable to Texas State are disclosed in Note 6, Bonded Indebtedness.
Based on the requirements of GASB Statements 34/35, depreciation is reported on all “exhaustible” assets. “Inexhaustible
assets” such as works of art are not depreciated. Assets are depreciated over the estimated useful life of the asset using the
straight-line method.
Capital assets are depreciated using the following useful lives:
Buildings 22-30
Furniture and Equipment 7-15
Vehicles 5-10
Other Assets 15
ACCOUNTS PAYABLE
Accounts payable represents the liability for the value of assets or services received at the statement of net assets date for which
payment is pending
OTHER PAYABLES
Other payables are the accrual at year-end of expenditure transactions not included in any of the other payable descriptions.
DEFERRED REVENUES
Deferred revenues represent payments received in advance of providing goods or services.
LONG-TERM LIABILITIES
General long-term liabilities are not limited to liabilities arising from debt issuances, but may also include non-current liabilities
on lease-purchase agreements and other commitments that are not recorded as current liabilities. In Proprietary Fund types,
long-term debt, and other long-term obligations are reported as liabilities in the applicable Business-Type Activities or as a
Proprietary Fund type in the Statement of Net Assets. Bonds Payable are reported net of the applicable bond premium or
discount. Issuance costs are reported as deferred charges and amortized over the term of the debt.
Annual Financial Report – for the fiscal year ended August 31, 2009
18
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
EMPLOYEES’ COMPENSABLE LEAVE BALANCES
A state employee is entitled to be paid for all unused vacation time accrued, in the event of the employee’s resignation,
dismissal, or separation from State employment, provided the employee has had continuous employment with the State for six
months. Expenditures for accumulated annual leave balances are recognized in the period paid or taken. Compensated absence
liabilities are reported as either short-term (current) or long-term (non-current) in the Statement of Net Assets. Long term is the
portion of vacation balance which was not earned in the given fiscal year. Short term is the portion earned during the fiscal
year. If the amount earned during a fiscal year is greater than the balance, then the entire balance is considered short-term. An
expense and liability for proprietary fund types are recorded as the benefits accrue to employees.
OVERTIME AND COMPENSATORY LEAVE FOR FLSA NON-EXEMPT AND EXEMPT EMPLOYEES
Under the Federal Fair Labor Standards Act (FLSA) and State laws, overtime can be accumulated in lieu of immediate payment
as compensatory leave (at 1.5 hours times overtime hours worked) for non-exempt employees to a maximum of 100 hours. All
overtime exceeding 100 hours must be paid with the next regular payroll. At termination or death all overtime balances must be
paid in full.
Compensatory leave is allowed by the State for non-exempt and FLSA-exempt employees who are not eligible for overtime
pay. This leave is accumulated on an hour-for-hour basis and must be taken within one year from date earned or it lapses.
There is no death or termination benefit for compensatory leave and it is non-transferable. Compensatory leave is reported as a
current liability.
Employees accrue vacation at a rate of 8-21 hours per month depending on years of employment. The maximum number of
hours that can be carried forward to the next fiscal year ranges from 180 hours to 532 hours based on years of service.
EMPLOYEE SICK LEAVE
Sick leave is accrued at a rate of 8 hours per month with no limit on the amount that can be carried forward to the next fiscal
year. Accumulated sick leave is not paid at employee termination, although an employee’s estate may be paid one-half of the
accumulated sick leave up to a maximum of 336 hours.
NET ASSETS
The difference between assets and liabilities is ‘Net Assets’ on the proprietary fund statements.
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by
outstanding balances for bonds, notes and other debt that are attributed to the acquisition, construction, or improvement of those
assets.
RESTRICTED NET ASSETS
Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors,
contributors, and the like, or imposed by law through constitutional provisions or enabling legislation.
UNRESTRICTED NET ASSETS
Unrestricted net assets consist of net assets which do not meet the definition of the two preceding categories. Unrestricted net
assets often have constraints on resources, which are imposed by management, but can be removed or modified. Substantially
all unrestricted net assets are designated for academic and research programs and initiatives, and capital projects.
Annual Financial Report – for the fiscal year ended August 31, 2009
19
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: Capital Assets
A summary of changes in capital assets for the fiscal year is presented below:
PRIMARY GOVERNMENT
Balance Reclassifications
Inc-Int'agy Dec-Int'agy
9/1/2008 Adjustments Completed CIP Trans Trans
BUSINESS-TYPE ACTIVITIES
Non-Depreciable Assets
Land and Land Improvements $33,422,609.98
Construction in Progress 62,475,021.95
Other Assets 3,485,179.31
Total Non-Depreciable Assets $99,382,811.24 $0.00 $0.00 $0.00 $0.00
Depreciable Assets
Buildings and Building Improvements $513,603,568.71
Infrastructure 39,960,706.81 ($11,648,739.90)
Facilities & Other Improvements 30,204,219.97
Furniture and Equipment 38,517,781.74 11,648,739.90 $65,918.00
Vehicle, Boats & Aircraft 4,997,343.30 20,693.00
Other Assets 62,250,477.85
Total Depreciable Assets at Historical Costs $689,534,098.38 $0.00 $0.00 $86,611.00 $0.00
Less Accumulated Depreciation for:
Buildings and Improvements ($270,195,739.09)
Infrastructure (19,059,514.67)
Facilities & Other Improvements (11,883,361.54)
Furniture and Equipment (22,528,605.11)
Vehicles, Boats & Aircraft (3,358,785.55)
Other Assets (30,307,754.74)
Total Accumulated Depreciation (357,333,760.70) 0.00 0.00 0.00 0.00
Depreciable Assets, Net 332,200,337.68 0.00 0.00 86,611.00 0.00
Business Type-Activities Capital Assets, Net $431,583,148.92 $0.00 $0.00 $86,611.00 $0.00
Annual Financial Report – for the fiscal year ended August 31, 2009
20
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
Balance
Additions Deletions 8/31/2009
$68,956.54 $33,491,566.52
63,935,347.92 126,410,369.87
129,490.05 3,614,669.36
$64,133,794.51 $0.00 $163,516,605.75
$3,798,240.81 $517,401,809.52
28,311,966.91
30,204,219.97
11,985,702.88 ($1,861,368.05) 60,356,774.47
526,384.30 (373,513.99) 5,170,906.61
5,684,407.11 (350,967.89) 67,583,917.07
$21,994,735.10 ($2,585,849.93) $709,029,594.55
($13,035,203.90) ($283,230,942.99)
(1,164,011.92) $1,262,037.81 (18,961,488.78)
(1,117,791.26) (13,001,152.80)
(6,076,416.05) 365,312.09 (28,239,709.07)
(355,131.00) 314,462.73 (3,399,453.82)
(4,539,389.90) 350,967.89 (34,496,176.75)
(26,287,944.03) 2,292,780.52 (381,328,924.21)
(4,293,208.93) (293,069.41) 327,700,670.34
$59,840,585.58 ($293,069.41) $491,217,276.09
Annual Financial Report – for the fiscal year ended August 31, 2009
21
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 3: Deposits, Investments and Repurchase Agreements
Texas State is authorized to invest in obligations and instruments as defined in the Public Funds Investment Act (Texas
Government Code Sec. 2256.001) and for the Endowment Fund as defined in the Uniform Prudent Management of Institutional
Funds Act (Property Code Chapter 163.001). Such investments include: (1) obligations of the United States or its agencies, (2)
direct obligations of the State of Texas or its agencies, (3) obligations of political subdivisions rated not less than “A” by a
national investment rating firm, (4) certificates of deposit and (5) other instruments and obligations authorized by statute.
Deposits
As of August 31, 2009, the actual bank balance was $23,787,342.88. The carrying value was $18,431,440.64 as presented
below.
Governmental and Business-Type Activities
CASH IN BANK - CARRYING VALUE $18,431,440.64
Less: Certificates of Deposit included in carrying value and reported as Cash Equivalent
Less: Uninvested Securities Lending Cash Collateral included in carrying value and reported as Securities
Lending Collateral
Less: Securities Lending CD Collateral included in carrying value and reported as Securities Lending
Collateral
Cash in Bank per AFR $18,431,440.64
Governmental Funds Current Assets Cash in Bank $18,431,440.64
Governmental Funds Current Assets Restricted Cash in Bank
Governmental Funds Non-Current Assets Restricted Cash in Bank
Proprietary Funds Current Assets Cash in Bank
Proprietary Funds Current Assets Restricted Cash in Bank
Proprietary Funds Non-Current Restricted Cash in Bank
Cash in Bank per AFR $18,431,440.64
Investments
As of August 31, 2009 the fair value of investments as presented below.
Governmental and Business-Type Activities
U.S. Governm ent Fair Value
U.S. Treasury Securities
U.S. Treasury Strips
U.S. Treasury TIPS
U.S. Government Agency Obligations (Ginnie Mae, Fannie Mae, Freddie Mac, etc)
U.S. Government Agency Obligations (Texas Treasury Safekeeping Trust Co)
Corporate Obligations $2,033,272.00
Corporate Asset and Mortgage Backed Securities
Equity
International Obligations (Govt and Corp)
International Equity
Repurchase Agreement
Repurchase Agreement (Texas Treasury Safekeeping Trust Co)
Fixed Income Money Market and Bond Mutual Fund 81,398,092.58
Other Commingled Funds 20,441,312.12
International Other Commingled Funds
SUBTOTAL LONG-TERM INVESTMENTS (Statem ent of Net Assets) $103,872,676.70
Other Commingled Funds (Texpool) 278,135,680.35
Commercial Paper
Alternative Investments
Misc (alternative investments, limited partnerships, guaranteed investment contract, political subdivision, bankers'
acceptance, negotiable CD)
SUBTOTAL CASH EQUIVALENTS (Statem ent of Net Assets) $278,135,680.35
Total $382,008,357.05
Annual Financial Report – for the fiscal year ended August 31, 2009
22
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
Credit risk is the risk that an issuer or counterparty to an investment will not fulfill its obligations. The Investment Policy of
The Texas State University System, Chapter VI (“Authorized Investments”) specifies that bond investments “…must be rated
by at least one nationally recognized statistical rating agency, at time of purchase, in one of the three highest rating categories
(i.e., AAA to A). Investments in specific bonds are limited to 5% of total portfolio.”
Standard & Poor’s
Fund GAAP
Type Fund Investm ent Type AAA AA A BBB Total
05 9999 Corporate Obligations $414,520.00 $1,215,636.00 $403,116.00 $2,033,272.00
Fixed Money Market and Bond Mutual Fund
U.S. Government Agency Obligations (Exclude
obligations explicitly guaranteed by U.S.
Government such as Ginnie Mae, GSEs such as
Fannie Mae have implicit U.S. Government
guarantees and therefore are considered to have
05 9999 credit risk and require disclosure of credit quality) $69,497,629.40 69,497,629.40
05 9999 Corporate Obligations 4,669,055.00 5,342,746.30 967,513.65 708,732.78 11,688,047.73
05 9999 Corporate Asset and Mortgage Backed Securities 212,415.45 212,415.45
TOTAL $74,379,099.85 $5,757,266.30 $2,183,149.65 $1,111,848.78 $83,431,364.58
NOTE 4: Short-Term Debt
Not Applicable.
During the fiscal year ended August 31, 2009, Texas State had no short-term debt activity.
NOTE 5: Summary of Long-Term Liabilities
During the fiscal year ended August 31, 2009, the following changes occurred in liabilities:
Balance Balance Amounts Due
Business - Type Activities 9/1/2008 Additions Reductions 8/31/2009 Within One Year
Revenue Bonds Payable $2,465,000.00 $515,000.00 $1,950,000.00 $540,000.00
Capital Lease Obligation 35,707.17 $93,239.00 50,347.29 78,598.88 16,415.33
Compensable Leave 10,573,905.02 1,122,076.48 313,863.53 11,382,117.97 7,756,519.28
Total Business-Type Activities $13,074,612.19 $1,215,315.48 $879,210.82 $13,410,716.85 $8,312,934.61
Employees’ Compensable Leave
Accrued compensated absence is the institution’s liability for unpaid overtime accrued by classified employees and unused
vacation time for all employees. Any obligation to university personnel is paid at the time an employee is dismissed, resigns, or
separates from the university, provided the employee has had six months of continuous employment with the State. An expense
and liability are recorded annually as the benefits accrue to employees. A maximum accrual of 532 hours of vacation is allowed
for employees with 35 or more years of service. For the fiscal year ended August 31, 2009, the accrued liability totaled
$11,382,117.97 for vacation and/or compensator time. The university made lump sum payments totaling $313,863.53 for
accrued vacation and/or compensatory time to employees who separated from State service during the fiscal year ending August
31, 2009. Sick leave, the accumulation of which is unlimited, is earned at the rate of eight hours per month and is only paid
when an employee is off due to illness or to the estate of an employee in the event of his/her death. The maximum leave that
may be paid an employees’ estate is one-half of the employee’s accumulated entitlement or 336 hours, whichever is less.
Bonds Payable obligations are described in detail in Note 6.
Capital Lease obligations are described in detail in Note 7.
Annual Financial Report – for the fiscal year ended August 31, 2009
23
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 6: Bonded Indebtedness
Description of Bond Issues
Texas State has two bond-issues outstanding as of August 31, 2009. Details of debt service requirements related to these two
issues can be found in Schedule 2C, Debt Service Requirements.
Housing System Revenue Bonds, Series 1986
● To acquire an apartment complex known as Comanche Hills
● Issued April 1, 1986
● $3,500,000; all authorized bonds have been issued
● Interest Rates – 3.0%
● First/last year of scheduled maturities – 1988/2016
● First call date – 10/1/1996
● Revenue Bond
● Source of revenue for debt service – Auxiliary Enterprises net operating revenues
Utility System Revenue Bonds, Series 1996
● To improve and enlarge the utility system of the university, and to pay for issuance of bonds
● Issued February 15, 1996
● $4,415,000; all authorized bonds have been issued
● Interest Rates – 3.6% – 5.45%
● First/last year of scheduled maturities – 1998/2011
● First call date – 8/1/2006
● Revenue Bond
● Source of revenue for debt service – Utility System net operating revenues
Defeased Bonds
The following bonds are fully defeased at August 31, 2009:
Housing System, Revenue Bonds, Series ‘70
All other bonded indebtedness for Texas State University-San Marcos is issued by System Administration through the Texas
State University System Revenue Financing System. System Administration and each component institution within the system
are members of the Revenue Financing System. The Board of Regents pledged all of the funds (revenues) and balances derived
or attributable to any member of the Revenue Financing System that is lawfully available to the board for payments on Parity
Debt.
System Administration issued the debt; therefore, the bonds payable attributable to the institution are included with the Bonds
Payable reported by System Administration. The institution must repay the debt that was issued on its behalf; consequently, the
following debt amortization schedule is presented for informational purposes only.
DEBT SERVICE REQUIREMENTS ATTRIBUTABLE
TO TEXAS STATE UNIVERSITY - SAN MARCOS
Description Year Principal Interest Total
All Series 2010 $16,942,697.85 $16,062,621.54 $33,005,319.39
2011 17,286,309.08 15,867,542.04 33,153,851.12
2012 15,991,341.76 15,080,629.90 31,071,971.66
2013-2017 83,156,528.25 63,817,076.58 146,973,604.83
2018-2022 87,013,016.96 42,869,369.92 129,882,386.88
2023-2027 78,635,000.00 21,951,118.76 100,586,118.76
2028-2032 36,105,000.00 4,281,250.00 40,386,250.00
2033-2034 2,450,000.00 185,250.00 2,635,250.00
TOTALS $337,579,893.90 $180,114,858.74 $517,694,752.64
Annual Financial Report – for the fiscal year ended August 31, 2009
24
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
A portion of the debt represents Tuition Revenue Bonds historically funded by the Texas Legislature through General Revenue
Appropriations. The institution was appropriated $11,725,927 during the current fiscal year for Tuition Revenue Bond debt
service. The institution expects future Legislative appropriations to meet debt service requirements for Tuition Revenue Bonds.
NOTE 7: Capital Leases
Certain leases to finance the purchase of equipment are capitalized at the present value of future minimum lease payments.
The following is a summary of original capitalized costs of all such property under lease as well as the accumulated
depreciation as of August 31, 2009:
Assets Under Capital Leases Business-Type Activities
Furniture & Equipment $166,803.61
Less: Accumulated Depreciation (27,926.17)
Total $138,877.44
Future minimum lease payments under these capital leases, together with the present value (discounted at various rates) of the
net minimum lease payments at fiscal year-end, are as follows:
Future Capital Lease Paym ents Business-Type Activities
Principal Interest
2010 $16,415.33 $9,530.67
2011 18,405.81 7,540.19
2012 20,637.64 5,308.36
2013 23,140.10 2,805.90
Total $78,598.88 $25,185.12
NOTE 8: Operating Lease Obligations
Future minimum lease rental payments under non-cancelable operating leases having an initial term in excess of one year are as
follows:
Fiscal Year Ended August 31, 2009
2010 $21,450.00
2011 $0.00
2012 $0.00
2013 $0.00
2014 $0.00
Total Minim um Future Lease Rental Paym ents $21,450.00
Annual Financial Report – for the fiscal year ended August 31, 2009
25
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 9: Retirement Plans (administering agencies only)
Not Applicable.
Texas State is not the administering agency for any employee retirement plan.
NOTE 10: Deferred Compensation (administering agencies only)
Not Applicable.
The Employee’s Retirement System will report the plans, balances, and liabilities for the State.
NOTE 11: Post-Employment Health Care and Life Insurance Benefits (administering agencies only)
Not Applicable.
The disclosure of information on post employment benefits other than pension benefits (OPEB) will be provided by Employees
Retirement System.
NOTE 12: Interfund Balances/Activity
Texas State experienced routine transfers with other state agencies, consistent with the activities of the fund making the transfer
and as a result of various grants and contract activities. In addition to transfers reflected on Schedule 1B – Schedule of State
Grant Pass-Throughs From/To State Agencies, Texas State recorded assets and liabilities for future amounts due to/from other
state agencies. Repayment of interagency balances will occur within one year from the date of the financial statements.
The university also experiences other interagency activity, which is classified as transfers in/out or legislative transfers in/out. In
accordance with tuition set-aside requirements in the Texas Education Code, Section 56.465, tuition revenues were transferred
to the Texas Higher Education Coordinating Board. Remaining transfers pertained to receipt of bond proceeds and debt service
payments from/to the Texas State University System. Legislative transfer activity is directly attributable to bonds authorized by
the Legislature and historically funded by means of special line items in the university’s General Revenue Appropriations.
Annual Financial Report – for the fiscal year ended August 31, 2009
26
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
Individual balances and activity at August 31, 2009:
Optional Note 12 Presentation:
Due From Other Agencies Due To Other Agencies Source
GENERAL REVENUE (01)
Appd Fund 0001, D23 Fund 0001
Appd Fund 0001, D23 Fund 0165
(Agency 320, D23 Fund 0165) $11,139.42 State
Appd Fund 0260, D23 Fund 0165
(Agency 320, D23 Fund 0165) 2,982.06 State
Appd Fund 5015, D23 Fund 5015
(Agency 601, D23 Fund 5015) $19,692.78 State - Shared
Appd Fund 7999, D23 Fund 0001
(Agency 530, D23 Fund 0001) 198,318.83 Federal
(Agency 537, D23 Fund 0001) 62,166.64 State
(Agency 701, D23 Fund 0001) 108,587.37 State
(Agency 701, D23 Fund 0001) 109,736.14 4,315.11 Federal
(Agency 781, D23 Fund 0001) 75,369.65 Federal
Appd Fund 7999, D23 Fund 0006
(Agency 601, D23 Fund 0006) 49,658.98 Federal
Appd Fund 7999, D23 Fund 0010
(Agency 582, D23 Fund 0010) 10,201.80 State
Appd Fund 7999, D23 Fund 0015
(Agency 582, D23 Fund 0015) 288,413.81 Federal
Appd Fund 7999, D23 Fund 0118
(Agency 306, D23 Fund 0118) 3,856.03 Federal
Appd Fund 7999, D23 Fund 0193
(Agency 701, D23 Fund 0193) 202,575.65 State
Appd Fund 7999, D23 Fund 0951
(Agency 802, D23 Fund 0951) 47,718.67 Federal
Appd Fund 7999, D23 Fund 6770
(Agency 300, D23 Fund 6770) 234,952.19 Federal
Appd Fund 7999, D23 Fund 6811
(Agency 300, D23 Fund 6811) 48,697.30 Federal
Appd Fund 7999, D23 Fund 7999
(Agency 555, D23 Fund 7999) 6,912.66 Federal
(Agency 716, D23 Fund 7999) 11,078.15 Federal
(Agency 721, D23 Fund 7999) 2,514.76 Federal
(Agency 756, D23 Fund 7999) 136,605.71 44,444.40 Federal
(Agency 752, D23 Fund 7999) 8,600.72 Federal
(Agency 755, D23 Fund 7999) 3,018.22 Federal
Total Due From /To Other Agencies $1,608,997.19 $82,559.86
Optional Note 12 Presentation:
Transfers In Transfers Out
GENERAL REVENUE (01)
Appd Fund 9999, D23 Fund 7999
(Agency 758, D23 Fund 7999) $41,342,900.00 $19,604,217.95
Appd Fund 0005, D23 Fund 7999
(Agency 781, D23 Fund 5103) 2,894,724.06
Total Transfers $41,342,900.00 $22,498,942.01 (18,843,957.99)
Required Note 12 Presentation:
Legislative Transfer In Legislative Transfers Out
GENERAL REVENUE (01)
Appd Fund 0001, D23 Fund 0001
(Agency 758, D23 Fund 0001) $11,724,358.71 11,724,358.71
Total Legislative Transfers $11,724,358.71
The detailed State Grant Pass-Through information is listed on Schedule 1B – Schedule of State Grant Pass-Through From/To
State Agencies.
Annual Financial Report – for the fiscal year ended August 31, 2009
27
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 13: Continuance Subject to Review
Not Applicable.
Texas State University-San Marcos is not subject to the Texas Sunset Act.
NOTE 14: Adjustments to Fund Balances and Net Assets
Not Applicable.
Texas State had no restatements for the fiscal year ended August 31, 2009.
NOTE 15: Contingent Liabilities
At August 31, 2009, various lawsuits and claims involving Texas State were pending. While the ultimate liability with respect
to litigation and other claims asserted against the university cannot be reasonably estimated at this time, such liability, to the
extent not provided for by insurance or otherwise, is not likely to have a material effect on the university.
NOTE 16: Subsequent Events
Not Applicable.
Texas State had no subsequent events to report for the fiscal year ended August 31, 2009.
NOTE 17: Risk Management
WORKERS’ COMPENSATION
The State’s Workers’ Compensation program is administered by the State Office of Risk Management (SORM). Historically,
expenditures were based on actual claims which were paid initially by SORM and reimbursed as follows: twenty-five percent
from university appropriations for university employees paid from general revenue funds and one hundred percent from Fund
260 and local funds. Workers’ Compensation was on a pay-as-you-go basis, under which no assets were set aside to be
accumulated for the payment of claims.
House Bill 2600, enacted by the 77th Legislature in 2001, produced significant changes in the Workers’ Compensation
program. One goal was to make it comparable to funded insurance programs in the private sector. Effective September 1,
2001, each agency (other than University of Texas and Texas A&M components, and the Texas Department of Transportation)
was assessed a charge for Workers’ Compensation coverage for their employees according to a formula, based on weighted
criteria. The original factors were: agency’s payroll expenditures (20%), injury frequency rate (40%), and prior losses (40%).
The factors and weights were revised again for FY2004, with the assessment based on: agency’s payroll expenditures (12.5%),
FTE (12.5%), number of claims (15%), and cost/pay-outs (60%). The factors and percentages remained the same for FY2009.
Agencies are also being assessed charges for employees funded from sources other than General Revenue. For Texas State, the
FY2009 assessment for all fund sources was $490,689.77.
Annual Financial Report – for the fiscal year ended August 31, 2009
28
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
UNEMPLOYMENT COMPENSATION
The State provides an Unemployment Compensation program; actual claims are paid from several funding sources as
determined by the Comptroller of Public Accounts. The university must reimburse the General Revenue Fund-Consolidated,
from university appropriations, fifty percent of the unemployment benefits paid for general revenue-funded employees and one-
hundred percent of the unemployment claims for employees paid from Fund 260 and other institutional funds. The
Unemployment Compensation program is on a pay-as-you-go basis, in which no assets are set aside to be accumulated for the
payment of claims. No material unemployment claims are pending at the fiscal year ended August 31, 2009.
PROPERTY AND OTHER INSURANCE COVERAGE
The university is required by certain bond covenants to carry Fire and Extended Coverage (including boiler and flood
insurance) on buildings. This coverage is limited to buildings constructed with bond proceeds financed from auxiliary and
other non-educational and general revenue sources. The insurance protects the bondholders from a disruption to the revenue
stream that is being utilized to make the bond interest and principal payments. No material property insurance claims were
made during the fiscal year ended August 31, 2009.
VEHICLE INSURANCE
The Texas Motor Vehicle Safety Responsibility Act (Texas Transportation Code, Chapter 601) requires that every non-
governmental vehicle operated on a State highway be insured for minimum limits of liability in the amount of $20,000/$40,000
bodily injury and $15,000 property damage. All vehicles owned and/or leased by Texas State are insured by coverage obtained
through the State Office of Risk Management (SORM). This is a change from previous years in which the vehicle insurance
was covered by commercial insurance contracted by The Texas State University System. This change occurred at mid-year
during FY2005. There is coverage of $1,000,000 combined single liability. The coverage exceeds the extent of the waivers of
State immunity in the Tort Claims Act.
OTHER
The university is exposed to a variety of civil claims resulting from the performance of its duties. It is the university’s policy to
periodically assess the proper combination of commercial insurance and retention of risk to cover losses to which it may be
exposed.
NOTE 18: Management Discussion and Analysis (MD&A)
Not Applicable.
Management Discussion and Analysis is a required part of the basic financial statements. Management Discussion and Analysis
is omitted because Texas State is reported in a consolidated format with The Texas State University System, which is reported
as a component of the State of Texas. Management Discussion and Analysis as it relates to Texas State University System can
be found in the State of Texas basic financial statements.
Annual Financial Report – for the fiscal year ended August 31, 2009
29
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 19: The Financial Reporting Entity
Component Units (CUs) are legally separate organizations for which the elected officials of the primary government are
financially accountable. In addition, CUs can be other organizations for which the nature and significance of their relationship
with the primary government is such that exclusion would create misleading or incomplete financial statements. Texas State has
determined that it does not have legally separate organizations that should be considered CUs.
RELATED PARTIES
The following affiliated foundations, while not component units, are disclosed due to their significant relationship with the
university. Affiliated foundations are controlled by separate boards of directors and are not included in the basic financial
statements of the university.
TEXAS STATE UNIVERSITY-SAN MARCOS DEVELOPMENT FOUNDATION
The Texas State University-San Marcos Development Foundation was formed in 1977 to support the educational, scientific and
research mission of Texas State. The Development Foundation raises and manages endowment funds designated for
scholarships and other support for the university.
THE MCCOY COLLEGE OF BUSINESS ADMINISTRATION DEVELOPMENT FOUNDATION
The McCoy Foundation, founded in 2004, is dedicated exclusively to the support of Texas State University-San Marcos
College of Business Administration. The McCoy Foundation administers its investments and transfers designated funds to the
McCoy College of Business Administration in support of chairs or professorships, undergraduate scholarships, graduate
fellowships, faculty development, and student development.
TEXAS STATE UNIVERSITY-SAN MARCOS SUPPORT FOUNDATION
The Texas State University-San Marcos Support Foundation was formed exclusively for charitable, educational and scientific
purposes to assist in the development of the university.
TEXAS STATE ALUMNI ASSOCIATION
The efforts and funds of the Texas State Alumni Association are dedicated to Texas State University-San Marcos for student
scholarships, campus support, and alumni outreach activities. The accounts of the Alumni Association are considered Held in
Trust for Others – Agency Funds. Agency funds are assets not owned by the university but held in custodianship, to be used or
withdrawn by the depositors at will. The Agency funds resources, including those of the Alumni Association, are reflected in
the university’s financial records as cash and cash equivalents with a corresponding liability to the depositing organizations.
NOTE 20: Stewardship, Compliance and Accountability
Texas State has no material violations of finance related legal and contract provisions and no new component units are included
in the financial report. Per the laws of the State of Texas, Texas State cannot spend amounts in excess of appropriations
granted by the Texas Legislature and there are no deficits reported in net assets or retained earnings.
Annual Financial Report – for the fiscal year ended August 31, 2009
30
UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 22: Donor-Restricted Endowments
The restricted, expendable, net asset classification on the Statement of Net Assets related to endowments is as follows:
Am ounts of Net Appreciation
Donor Restricted Endow m ent (In Thousands) Reported in Net Assets
True Endow ment $3,106 Restricted for Expendable
Total $3,106
The amount reported as Net Appreciation represents net appreciation on investments of donor restricted endowments that are
available for authorization for expenditure. Pursuant to the Uniform Prudent Management of Institutional Funds Act (Property
Code Chapter 163.001), net appreciation, realized and unrealized, in the fair market value of the endowment assets in excess of
historical dollar value of the gifts may be distributed to the extent prudent.
The Texas State University System Investment Policy provides for a spending policy of no more than 5% of a 12-quarter rolling
average market value. For FY2009, Texas State allocated 4% of the 12-quarter market value calculated as of August 31, 2007.
NOTE 23: Extraordinary and Special Items
Not Applicable.
Texas State had no special or extraordinary items to report for the fiscal year ended August 31, 2009.
NOTE 24: Disaggregation of Receivable and Payable Balances
Federal Receivables - Current
Federal Receivable Program Am ount
Education $76,286.50
Instruction 43,636.74
Public Service 525,219.92
Research 1,307,494.52
Scholarships 6,112,337.26
Total Federal Receivables $8,064,974.94
As Reported on the Financial Statem ents $8,064,974.94
NOTE 25: Termination Benefits
Not Applicable.
During the fiscal year ended August 31, 2009, Texas State did not provide termination benefits.
NOTE 26: Segment Information
Not Applicable.
Texas State does not use enterprise funds when reporting activities.
Annual Financial Report – for the fiscal year ended August 31, 2009
31
UNAUDITED
Texas State University-San Marcos (754)
Supplemental Supporting Information
Annual Financial Report – for the fiscal year ended August 31, 2009
32
UNAUDITED
Texas State University-San Marcos (754)
Supplemental Supporting Information
Annual Financial Report – for the fiscal year ended August 31, 2009
33
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
U.S. Departm ent of Agriculture
Direct Programs:
Child and Adult Care Food Program 10.558
Totals - U.S. Departm ent of Agriculture
U.S. Departm ent of Defense
U.S. Department of Defense 12.000 4400041000
Totals - U.S. Departm ent of Defense
U.S. Departm ent of Housing and Urban Developm ent
U.S. Department of Housing and Urban Development 14.000 7751021000
Totals - U.S. Departm ent of Housing and Urban Developm ent
U.S. Departm ent of the Interior
Cultural Resource Management 15.224
Pass-Through From:
Rivers, Trails and Conservation Assistance 15.921
Pass-Through From:
Stephen F. Austin State University
Totals - U.S. Departm ent of the Interior
U.S. Departm ent of Justice
Direct Programs:
Edw ard Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program 16.580
Edw ard Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program 16.580
Pass-Through To:
Texas Engineering Extension Service
Pass-Through From:
Juvenile Justice and Delinquency Prevention_Allocation to States 16.540
Pass-Through From:
Governor - Fiscal
Bulletproof Vest Partnership Program 16.607
Pass-Through From:
Governor - Fiscal
Edw ard Byrne Memorial Justice Assistance Grant Program 16.738
Pass-Through From:
Governor - Fiscal
Edw ard Byrne Memorial Justice Assistance Grant Program 16.738
Pass-Through From:
Governor - Fiscal
Pass-Through To:
Texas Engineering Extension Service
Totals - U.S. Departm ent of Justice
National Endow m ent For The Hum anities
Promotion of the Humanities_Federal/State Partnership 45.129 8000000822
8000001021
8000001109
Promotion of the Humanities_We the People 45.168 8000001114
Annual Financial Report – for the fiscal year ended August 31, 2009
34
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
26,130.60 26,130.60 26,130.60 26,130.60
0.00 0.00 26,130.60 26,130.60 0.00 0.00 26,130.60 26,130.60
11,466.12 11,466.12 11,466.12 11,466.12
0.00 0.00 11,466.12 11,466.12 0.00 0.00 11,466.12 11,466.12
95,642.00 95,642.00 95,642.00 95,642.00
0.00 0.00 95,642.00 95,642.00 0.00 0.00 95,642.00 95,642.00
91.05 91.05 91.05 91.05
3,018.22 3,018.22 3,018.22
755 3,018.22
3,018.22 0.00 91.05 3,109.27 0.00 0.00 3,109.27 3,109.27
(44,190.46) (44,190.46) (44,190.46) (44,190.46)
854,170.72 854,170.72 337,583.87 483,512.64 854,170.72
716 33,074.21
417,088.05 83,073.12 334,014.93 417,088.05
300 417,088.05
1,195.17 1,195.17 1,195.17
300 1,195.17
565,331.73 135,846.29 429,485.44 565,331.73
300 565,331.73
619,192.14 187,249.04 306,978.51 619,192.14
300 619,192.14
716 124,964.59
1,602,807.09 0.00 809,980.26 2,412,787.35 158,038.80 743,752.32 1,510,996.23 2,412,787.35
112.18 112.18 112.18 112.18
750.00 750.00 750.00 750.00
9,387.17 9,387.17 5,200.00 4,187.17 9,387.17
2,511.20 2,511.20 2,511.20 2,511.20
Annual Financial Report – for the fiscal year ended August 31, 2009
35
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
Pass-Through From:
Grants to States 45.310
Pass-Through From:
Texas State Library and Archives Commission
Totals - National Endow m ent For The Hum anities
National Science Foundation
Mathematical and Physical Sciences 47.049 8000000650
Totals - National Science Foundation
Sm all Business Adm inistration
Pass-Through From:
Small Business Development Centers 59.037
Pass-Through From:
University of Texas at San Antonio
Totals - Sm all Business Adm inistration
U.S. Departm ent of Veterans Affairs
Direct Programs:
Vocational and Educational Counseling for Servicemembers and Veterans 64.125
Totals - U.S. Departm ent of Veterans Affairs
Environm ental Protection Agency
Environmental Protection Consolidated Grants for the Insular Areas - Program Support 66.600
International Financial Assistance Projects Sponsored by the Office of International Affairs 66.931
Pass-Through From:
Nonpoint Source Implementation Grants 66.460
Pass-Through From:
Texas Commission on Environmental Quality
Totals - Environm ental Protection Agency
U.S. Departm ent of Education
Fund for the Improvement of Education 84.215 8000000547
8000000763
Direct Programs:
Migrant Education_State Grant Program 84.011
Undergraduate International Studies and Foreign Language Programs 84.016
Fund for the Improvement of Postsecondary Education 84.116
Migrant Education_High School Equivalency Program 84.141
Migrant Education_Coordination Program 84.144
Migrant Education_College Assistance Migrant Program 84.149
Business and International Education Projects 84.153
National Writing Project 84.928
Pass-Through From:
Improving Teacher Quality State Grants 84.367
Pass-Through From:
Texas Higher Education Coordinating Board
College Access Challenge Grant Program 84.378
Annual Financial Report – for the fiscal year ended August 31, 2009
36
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
18,373.24 18,373.24 18,373.24
306 18,373.24
18,373.24 12,760.55 0.00 31,133.79 0.00 5,200.00 25,933.79 31,133.79
7,325.86 7,325.86 7,325.86 7,325.86
0.00 7,325.86 0.00 7,325.86 0.00 0.00 7,325.86 7,325.86
247,245.42 247,245.42 247,245.42
743 247,245.42
247,245.42 0.00 0.00 247,245.42 0.00 0.00 247,245.42 247,245.42
10,080.28 10,080.28 10,080.28 10,080.28
0.00 0.00 10,080.28 10,080.28 0.00 0.00 10,080.28 10,080.28
19,594.76 19,594.76 19,594.76 19,594.76
22,701.52 22,701.52 2,450.00 20,251.52 22,701.52
2,339.26 2,339.26 2,339.26
582 2,339.26
2,339.26 0.00 42,296.28 44,635.54 0.00 2,450.00 42,185.54 44,635.54
90,298.21 90,298.21 11,000.00 79,298.21 90,298.21
49,100.64 49,100.64 15,000.00 34,100.64 49,100.64
322,506.50 322,506.50 35,708.54 286,797.96 322,506.50
801.04 801.04 801.04 801.04
404,459.39 404,459.39 404,459.39 404,459.39
337,635.47 337,635.47 15,292.00 322,343.47 337,635.47
153,307.13 153,307.13 153,307.13 153,307.13
368,120.96 368,120.96 12,600.00 355,520.96 368,120.96
32,052.27 32,052.27 500.00 31,552.27 32,052.27
118,286.18 118,286.18 15,232.00 103,054.18 118,286.18
291,586.63 17,683.15 273,903.48 291,586.63
781 291,586.63
56,703.64 56,703.64 56,703.64
Annual Financial Report – for the fiscal year ended August 31, 2009
37
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
Pass-Through From:
Texas Higher Education Coordinating Board
Totals - U.S. Departm ent of Education
U.S. Departm ent of Health and Hum an Services
Direct Programs:
Child Welfare Services Training Grants 93.648
Pass-Through From:
Foster Care_Title IV-E 93.658
Pass-Through From:
Department of Family and Protective Services
Totals - U.S. Departm ent of Health and Hum an Services
Am erican Recovery and Reinvestm ent Act
U.S. Departm ent of Education
Direct Programs:
ARRA - Federal Work-Study Program 84.033
Totals - U.S. Departm ent of Education
Research & Developm ent Cluster
U.S. Departm ent of Agriculture
Grants for Agricultural Research_Competitive Research Grants 10.206 8000000980
Small Business Innovation Research 10.212 8000000578
Direct Programs:
Grants for Agricultural Research_Competitive Research Grants 10.206
Pass-Through From:
Grants for Agricultural Research, Special Research Grants 10.200
Pass-Through From:
Sul Ross State University
Totals - U.S. Departm ent of Agriculture
U.S. Departm ent of Com m erce
Sea Grant Support 11.417 8000000700
Habitat Conservation 11.463 8000000560
Direct Programs:
Financial Assistance for National Centers for Coastal Ocean Science 11.426
Pass-Through From:
Sea Grant Support 11.417
Pass-Through From:
Texas AgriLife Research
Sea Grant Support 11.417
Pass-Through From:
Texas A&M University (Main University)
Totals - U.S. Departm ent of Com m erce
U.S. Departm ent of Defense
Basic and Applied Scientific Research 12.300 8000000621
8000000678
8000000864
Annual Financial Report – for the fiscal year ended August 31, 2009
38
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
781 56,703.64
348,290.27 139,398.85 1,737,168.94 2,224,858.06 0.00 123,015.69 2,101,842.37 2,224,858.06
121,733.63 121,733.63 586.31 121,147.32 121,733.63
722,362.75 722,362.75 722,362.75
530 722,362.75
722,362.75 0.00 121,733.63 844,096.38 0.00 586.31 843,510.07 844,096.38
118,077.29 118,077.29 118,077.29 118,077.29
0.00 0.00 118,077.29 118,077.29 0.00 0.00 118,077.29 118,077.29
33,490.31 33,490.31 12,456.49 21,033.82 33,490.31
994.53 994.53 994.53 994.53
(10,557.43) (10,557.43) (10,557.43) (10,557.43)
342,258.84 2,041.71 340,217.13 342,258.84
756 342,258.84
342,258.84 34,484.84 (10,557.43) 366,186.25 0.00 14,498.20 351,688.05 366,186.25
23,654.58 23,654.58 23,654.58 23,654.58
(683.83) (683.83) (683.83) (683.83)
698,716.70 698,716.70 36,477.59 662,239.11 698,716.70
8,381.82 8,381.82 8,381.82
556 8,381.82
40,104.38 40,104.38 40,104.38
711 40,104.38
48,486.20 22,970.75 698,716.70 770,173.65 0.00 36,477.59 733,696.06 770,173.65
(3,025.83) (3,025.83) (3,025.83) (3,025.83)
30,084.98 30,084.98 30,084.98 30,084.98
13,123.93 13,123.93 13,123.93 13,123.93
Annual Financial Report – for the fiscal year ended August 31, 2009
39
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
8000000873
8000001098
Basic Scientific Research 12.431 8000000958
Basic, Applied, and Advanced Research in Science and Engineering 12.630 8000000865
Research and Technology Development 12.910 8000000899
8000000989
Direct Programs:
Collaborative Research and Development 12.114
Basic and Applied Scientific Research 12.300
Basic and Applied Scientific Research 12.300
Pass-Through To:
Angelo State University
Basic and Applied Scientific Research 12.300
Pass-Through To:
University of North Texas
Basic and Applied Scientific Research 12.300
Pass-Through To:
Sul Ross State University
Basic Scientific Research 12.431
Air Force Defense Research Sciences Program 12.800
Mathematical Sciences Grants Program 12.901
Pass-Through From:
U.S. Department of Defense 12.000 8000000674
Pass-Through From:
Lamar University
U.S. Department of Defense 12.000 8000000968
Pass-Through From:
Lamar University
Totals - U.S. Departm ent of Defense
U.S. Departm ent of the Interior
Direct Programs:
Fish and Wildlife Management Assistance 15.608
Cooperative Endangered Species Conservation Fund 15.615
Wildlife Without Borders- Latin America and the Caribbean 15.640
U.S. Geological Survey_ Research and Data Collection 15.808
Outdoor Recreation_Acquisition, Development and Planning 15.916
Rivers, Trails and Conservation Assistance 15.921
Pass-Through From:
Cooperative Endangered Species Conservation Fund 15.615
Pass-Through From:
Parks and Wildlife Department
Totals - U.S. Departm ent of the Interior
U.S. Departm ent of Justice
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 8000000837
Direct Programs:
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560
Edw ard Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program 16.580
Totals - U.S. Departm ent of Justice
Annual Financial Report – for the fiscal year ended August 31, 2009
40
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
12,457.46 12,457.46 12,457.46 12,457.46
27,881.91 27,881.91 27,881.91 27,881.91
86,570.10 86,570.10 52,753.00 33,817.10 86,570.10
42,178.13 42,178.13 42,178.13 42,178.13
197,895.61 197,895.61 197,895.61 197,895.61
22,900.23 22,900.23 22,900.23 22,900.23
78,731.39 78,731.39 320.00 78,411.39 78,731.39
256,231.50 256,231.50 256,231.50 256,231.50
233,259.52 233,259.52 233,259.52
737 233,259.52
16,369.55 16,369.55 16,369.55
752 16,369.55
628,102.97 628,102.97 4,999.99 578,658.58 628,102.97
756 44,444.40
202,017.02 202,017.02 202,017.02 202,017.02
(453.01) (453.01) (453.01) (453.01)
27,601.22 27,601.22 27,601.22 27,601.22
3,993.39 3,993.39 3,993.39
734 3,993.39
49,928.14 49,928.14 49,928.14
734 49,928.14
53,921.53 430,066.52 1,441,860.16 1,925,848.21 294,073.47 58,072.99 1,573,701.75 1,925,848.21
128,036.06 128,036.06 128,036.06 128,036.06
59,141.72 59,141.72 59,141.72 59,141.72
37,193.43 37,193.43 37,193.43 37,193.43
0.08 0.08 0.08 0.08
613.59 613.59 613.59 613.59
94,455.18 94,455.18 17,872.14 76,583.04 94,455.18
180,790.15 180,790.15 180,790.15
802 180,790.15
180,790.15 0.00 319,440.06 500,230.21 0.00 17,872.14 482,358.07 500,230.21
25,862.14 25,862.14 25,862.14 25,862.14
3,648.52 3,648.52 3,648.52 3,648.52
87,887.45 87,887.45 87,887.45 87,887.45
0.00 25,862.14 91,535.97 117,398.11 0.00 0.00 117,398.11 117,398.11
Annual Financial Report – for the fiscal year ended August 31, 2009
41
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
U. S. Departm ent of State
Program for Study of Eastern Europe and the Independent States of the Former Soviet Union 19.300 8000000701
Totals - U. S. Departm ent of State
National Aeronautics & Space Adm inistration
Pass-Through From:
Aerospace Education Services Program 43.001
Pass-Through From:
University of Texas at Austin
Totals - National Aeronautics & Space Adm inistration
National Endow m ent For The Hum anities
Promotion of the Humanities_Federal/State Partnership 45.129 8000000715
Totals - National Endow m ent For The Hum anities
National Science Foundation
Engineering Grants 47.041 8000000784
8000000790
8000001045
Mathematical and Physical Sciences 47.049 8000000116
Computer and Information Science and Engineering 47.070 8000000823
Education and Human Resources 47.076 8000000785
Direct Programs:
Engineering Grants 47.041
Mathematical and Physical Sciences 47.049
Computer and Information Science and Engineering 47.070
Biological Sciences 47.074
Social, Behavioral, and Economic Sciences 47.075
Education and Human Resources 47.076
Pass-Through From:
Engineering Grants 47.041
Pass-Through From:
Texas A&M University - Corpus Christi
Education and Human Resources 47.076
Pass-Through From:
University of Houston
Totals - National Science Foundation
U.S. Departm ent of Veterans Affairs
Direct Programs:
Veterans Medical Care Benefits 64.009
Totals - U.S. Departm ent of Veterans Affairs
Environm ental Protection Agency
Surveys, Studies, Investigations and Special Purpose Grants w ithin the Office of Research and Development 66.510 8000000739
Direct Programs:
Congressionally Mandated Projects 66.202
Assessment and Watershed Protection Program Grants 66.480
Annual Financial Report – for the fiscal year ended August 31, 2009
42
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
23,646.39 23,646.39 23,646.39 23,646.39
0.00 23,646.39 0.00 23,646.39 0.00 0.00 23,646.39 23,646.39
23,051.54 23,051.54 23,051.54
721 23,051.54
23,051.54 0.00 0.00 23,051.54 0.00 0.00 23,051.54 23,051.54
516.42 516.42 516.42 516.42
0.00 516.42 0.00 516.42 0.00 0.00 516.42 516.42
54,564.46 54,564.46 54,564.46 54,564.46
3,906.42 3,906.42 3,906.42 3,906.42
3,372.14 3,372.14 3,372.14 3,372.14
2,265.35 2,265.35 2,265.35 2,265.35
(941.18) (941.18) (941.18) (941.18)
18,623.71 18,623.71 18,623.71 18,623.71
(14,743.42) (14,743.42) (14,743.42) (14,743.42)
178,894.38 178,894.38 178,894.38 178,894.38
50,137.93 50,137.93 50,137.93 50,137.93
372,520.00 372,520.00 6,096.40 366,423.60 372,520.00
332,965.04 332,965.04 60,347.00 272,618.04 332,965.04
494,795.97 494,795.97 494,795.97 494,795.97
47,659.69 47,659.69 47,659.69
760 47,659.69
83,775.06 115.00 83,660.06 83,775.06
730 83,775.06
131,434.75 81,790.90 1,414,569.90 1,627,795.55 0.00 66,558.40 1,561,237.15 1,627,795.55
14,195.64 14,195.64 14,195.64 14,195.64
0.00 0.00 14,195.64 14,195.64 0.00 0.00 14,195.64 14,195.64
254.76 254.76 254.76 254.76
201,016.02 201,016.02 18,000.00 183,016.02 201,016.02
41,638.71 41,638.71 9,172.61 32,466.10 41,638.71
Annual Financial Report – for the fiscal year ended August 31, 2009
43
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
Pass-Through From:
National Estuary Program 66.456
Pass-Through From:
Texas Commission on Environmental Quality
Nonpoint Source Implementation Grants 66.460
Pass-Through From:
Texas AgriLife Extension
Nonpoint Source Implementation Grants 66.460
Pass-Through From:
Texas Commission on Environmental Quality
National Community-Based Lead Outreach and Training Grant Program 66.718
Pass-Through From:
Texas Tech University
Totals - Environm ental Protection Agency
U.S. Departm ent of Energy
Inventions and Innovations 81.036 8000000851
Office of Science Financial Assistance Program 81.049 8000000963
8000000995
Totals - U.S. Departm ent of Energy
U.S. Departm ent of Education
Higher Education_Institutional Aid 84.031 8000000982
Research in Special Education 84.324 8000000974
Pass-Through From:
Adult Education - Basic Grants to States 84.002
Pass-Through From:
Texas Education Agency
Even Start_State Educational Agencies 84.213
Pass-Through From:
Texas Education Agency
Totals - U.S. Departm ent of Education
U.S. Departm ent of Health and Hum an Services
Alcohol Research Programs 93.273 8000001112
Direct Programs:
U.S. Department of Health and Human Services 93.000 8000001086
Healthy Marriage Promotion and Responsible Fatherhood Grants 93.086
Mental Health Research Grants 93.242
National Center for Research Resources 93.389
Cancer Cause and Prevention Research 93.393
Aging Research 93.866
Pass-Through From:
Traumatic Brain Injury State Demonstration Grant Program 93.234
Pass-Through From:
Department of State Health Services
Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847
Pass-Through From:
University of Texas Health Science Center at San Antonio
Totals - U.S. Departm ent of Health and Hum an Services
Annual Financial Report – for the fiscal year ended August 31, 2009
44
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
13,781.13 13,781.13 13,781.13
582 13,781.13
12,502.73 12,502.73 12,502.73
555 12,502.73
550,261.76 11,766.67 538,495.09 550,261.76
582 550,261.76
18,906.55 18,906.55 18,906.55
733 18,906.55
595,452.17 254.76 242,654.73 838,361.66 0.00 38,939.28 799,422.38 838,361.66
0.01 0.01 0.01 0.01
20,569.28 20,569.28 20,569.28 20,569.28
42,635.42 42,635.42 42,635.42 42,635.42
0.00 63,204.71 0.00 63,204.71 0.00 0.00 63,204.71 63,204.71
97,647.28 97,647.28 18,235.20 79,412.08 97,647.28
72,598.43 72,598.43 72,598.43 72,598.43
850,712.67 74,429.67 776,283.00 850,712.67
701 850,712.67
42,827.77 (1,328.79) 44,156.56 42,827.77
701 42,827.77
893,540.44 170,245.71 0.00 1,063,786.15 0.00 91,336.08 972,450.07 1,063,786.15
64,322.75 64,322.75 18,500.00 45,822.75 64,322.75
481,085.79 481,085.79 481,085.79 481,085.79
28,773.68 28,773.68 28,773.68 28,773.68
3,512.22 3,512.22 3,512.22 3,512.22
290,818.36 290,818.36 128,089.46 162,728.90 290,818.36
83,747.78 83,747.78 83,747.78 83,747.78
43,630.92 43,630.92 43,630.92 43,630.92
14,184.92 14,184.92 14,184.92
537 14,184.92
26,500.03 26,500.03 26,500.03
745 26,500.03
40,684.95 64,322.75 931,568.75 1,036,576.45 0.00 146,589.46 889,986.99 1,036,576.45
Annual Financial Report – for the fiscal year ended August 31, 2009
45
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Grantor/ CFDA Identifying
Pass-through Grantor/ Number Number
Program Title
U.S. Departm ent of Hom eland Security
Homeland Security Research Testing, Evaluation, and Demonstration of Technologies Related to Nuclear Detection 97.077 8000001002
Totals - U.S. Departm ent of Hom eland Security
Highw ay Safety Cluster
U.S. Departm ent of Transportation
Pass-Through From:
Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601
Pass-Through From:
Texas Department of Transportation
Totals - U.S. Departm ent of Transportation
Student Financial Assistance Cluster
U.S. Departm ent of Education
Direct Programs:
Federal Supplemental Educational Opportunity Grants 84.007
Federal Family Education Loans 84.032
Federal Work-Study Program 84.033
Federal Perkins Loan Program_Federal Capital Contributions 84.038
Federal Pell Grant Program 84.063
Federal Direct Student Loans 84.268
Academic Competitiveness Grants 84.375
National Science and Mathematics Access to Retain Talent (SMART) Grants 84.376
Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) 84.379
Totals - U.S. Departm ent of Education
U.S. Departm ent of Health and Hum an Services
Scholarships for Health Professions Students from Disadvantaged Backgrounds 93.925
Totals - U.S. Departm ent of Health and Hum an Services
Title I, Part A Cluster
U.S. Departm ent of Education
Pass-Through From:
Title I Grants to Local Educational Agencies 84.010
Pass-Through From:
Texas Education Agency
Totals - U.S. Departm ent of Education
TRIO Cluster
U.S. Departm ent of Education
Direct Programs:
TRIO_Student Support Services 84.042
TRIO_Talent Search 84.044
TRIO_Upw ard Bound 84.047
Totals - U.S. Departm ent of Education
Total Expenditures of Federal Aw ards
Annual Financial Report – for the fiscal year ended August 31, 2009
46
UNAUDITED
Texas State University-San Marcos (754)
Pass-through From Pass-through To
Agy/ Agencies or Non-State Direct Total Agy/ Agencies or Non-State Expenditures Total
Univ Universities Entities Program PT From and Univ Universities Entities Amount PT To and
No Amount Amount Amount Direct Prog. No. Amount Amount Expenditures
Amount Amount
59,264.81 59,264.81 59,264.81 59,264.81
0.00 59,264.81 0.00 59,264.81 0.00 0.00 59,264.81 59,264.81
227,889.86 227,889.86 227,889.86
601 227,889.86
227,889.86 0.00 0.00 227,889.86 0.00 0.00 227,889.86 227,889.86
1,134,439.60 1,134,439.60 1,134,439.60 1,134,439.60
97,772.56 97,772.56 97,772.56 97,772.56
994,450.40 994,450.40 994,450.40 994,450.40
76,000.00 76,000.00 76,000.00 76,000.00
26,823,816.33 26,823,816.33 26,823,816.33 26,823,816.33
142,964,201.38 142,964,201.38 142,964,201.38 142,964,201.38
1,063,824.88 1,063,824.88 1,063,824.88 1,063,824.88
353,910.00 353,910.00 353,910.00 353,910.00
79,498.00 79,498.00 79,498.00 79,498.00
0.00 0.00 173,587,913.15 173,587,913.15 0.00 0.00 173,587,913.15 173,587,913.15
65,329.00 65,329.00 65,329.00 65,329.00
0.00 0.00 65,329.00 65,329.00 0.00 0.00 65,329.00 65,329.00
126,833.08 126,833.08 126,833.08
701 126,833.08
126,833.08 0.00 0.00 126,833.08 0.00 0.00 126,833.08 126,833.08
300,778.08 300,778.08 2,500.00 298,278.08 300,778.08
687,652.28 687,652.28 5,000.00 682,652.28 687,652.28
364,469.05 364,469.05 2,315.00 362,154.05 364,469.05
0.00 0.00 1,352,899.41 1,352,899.41 0.00 9,815.00 1,343,084.41 1,352,899.41
$5,608,779.76 $1,136,115.96 $183,122,792.49 $189,867,688.21 $452,112.27 $1,355,163.46 $188,060,412.48 $189,867,688.21
Annual Financial Report – for the fiscal year ended August 31, 2009
47
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1A - Schedule of Expenditures of Federal Awards
DUN - 074602368
Federal Assistance Schedule - Reconcliation
Note 1: Non-Monetary Assistance
Non-monetary Federal assistance received during the current fiscal year w as zero.
Note 2: Reconciliation:
Reconciliation of Revenues and Receipts to Expenditures
and Disbursements (Pass-through):
Federal Revenues - Per SRECNA:
Federal Grants and Contracts-Restricted $14,347,118.18
Federal Pass-through Grants from Other State Agencies 5,625,259.71
Fed Grant - Non Exchange - Pell 26,823,816.33
Total Federal Revenues per SRECNA $46,796,194.22
Reconciling Items:
New Loans Processed:
Stafford Loans $25,905.26
Parent Loans 71,867.30
Perkins Student Loan 26,000.00
Direct Loans 142,964,201.38
Non Monetary Items:
Federal Pass Thru from Other State Agencies (16,479.95)
Expenditures Per Federal Schedule $189,867,688.21
Note 3: Student Loans Processed and Adm inistrative Costs Recovered
Total Loans Ending
Processed & Balances
Federal Grantor/ New Loans Administrative Admin Costs of Previous
CFDA Number/Program Name Processed Costs Recovered Recovered Years' Loans
Department of Education
84.032 Federal Family Education Loans - Stafford $25,905.26 $25,905.26
84.032 Federal Family Education Loans - Parent Loans 71,867.30 71,867.30
84.038 Federal Perkins Loans 26,000.00 $50,000.00 76,000.00 $505,335.23
84.268 Federal Direct Student Loan 142,964,201.38 142,964,201.38
Total Department of Education $143,087,973.94 $50,000.00 $143,137,973.94 $505,335.23
Note 4: Governm ental Publications
The University participates as a depository library in the Government
Printing Office's Depository Libraries for Government Publication program,
CFDA #40.001. The University is the legal custodian of government
publications, w hich remain the property of the Federal government.
The publications are not assigned a value by the Government Printing Office.
Note 5: Unem ploym ent Insurance Funds
There w ere no expenditures for CFDA 17.225 during the current fiscal year.
Note 6: N/A
Note 7: N/A
Annual Financial Report – for the fiscal year ended August 31, 2009
48
UNAUDITED
Texas State University-San Marcos (754)
Federal Assistance Schedule - Reconcliation (continued)
Note 8: Federal Deferred Revenue Federal Deferred Federal Deferred
Revenue Increase Revenue
CFDA September 1, 2008 (Decrease) August 31, 2009
10.200 Grants for Agricultural Research, Special Research Grants $0.00 $9,562.04 $9,562.04
12.300 Basic and Applied Scientific Research 0.00 16,068.89 16,068.89
12.431 Basic Scientific Research 0.00 84,337.73 84,337.73
15.921 Rivers, Trails and Conservation Assistance 0.00 470.84 470.84
16.580 Edw ard Byrne Memorial State and Local Law Enforcement
Assistance Discretionary Grants Program 0.00 4.18 4.18
19.015 Cultural, Technical and Educational Centers 0.00 600.00 600.00
45.129 Promotion of the Humanities_Federal/State Partnership 0.00 3,450.59 3,450.59
84.000 U.S. Department of Education 0.00 42,776.68 42,776.68
84.144 Migrant Education_Coordination Program 0.00 13,339.17 13,339.17
84.215 Fund for the Improvement of Education 0.00 24,362.82 24,362.82
$0.00 $194,972.94 $194,972.94
Explanation w hy the deferred revenue is reported:
All are paid up front or on a schedule w ith the exception of:
10-200 - Correction of expenses
12.300 - $15,105.46 of the deferred revenue is due to the Agency's duplicate payment
Annual Financial Report – for the fiscal year ended August 31, 2009
49
UNAUDITED
Texas State University-San Marcos (754)
Schedule 1B – Schedule of State Grant Pass-Throughs From/To State Agencies
PASS-THROUGH FROM:
Office of the Governor (Agy. 300)
Texas Emergency Technology Fund $2,000,000.00
Total Office of the Governor $2,000,000.00
Texas Department Health & Human Services (Agy. 537)
GIS-Augmented Environmental Health Research in Texas: Residential Proximity $71,676.56
Total Texas Department Health & Human Services $71,676.56
Texas Commission on Environmental Quality (Agy. 582)
Galveston Bay Watershed Project $38,358.38
Total Texas Commission on Environmental Quality $38,358.38
Texas Education Agency (Agy. 701)
Science for Mell $197,257.63
TSUS Mell 297,031.26
TSUS-Texas Math Initiative 654,046.47
Stellar Grant 331,679.05
Total Texas Education Agency $1,480,014.41
Texas Higher Education Coordinating Board (Agy. 781)
5th Year Accounting Student Grants $22,656.00
Advanced Research Program 6,732.78
Advanced Tech Program (534.18)
Higher Education Performance Inc- Incentive 4,286,063.00
MST Teacher Prep- HB2237 Grant 734,173.00
College Work Study Program 158,277.00
CRU-Prof Svs & Grants 149,434.00
Technology Work Force Development (4,430.89)
Engineering Recruitment Program 5,000.00
Intensive Summer Program Grant (49,919.25)
Texas Grant Program 8,874,687.33
Work Study Mentorship Program 40,000.00
Total Texas Higher Education Coordinating Board $14,222,138.79
Texas Water Development Board (Agy. 580)
San Antonio River Project 1: GIS Mapping $2,394.05
Total Texas Water Development Board $2,394.05
Texas State University System (Agy. 758)
College Readiness $85,000.00
College and Career Readiness Initiative Faculty Collaboratives Program 15,605.83
Total Texas State University System $100,605.83
Total Due From Other State Agencies (Statement of Revenues, Expenses, and Changes in Net Assets) $17,915,188.02
PASS-THROUGH TO:
Sam Houston State University (Agy. 795-753)
TSUS Mell $47,526.84
TSUS-Texas Math Initiative 41,573.52
Total Sam Houston State University $89,100.36
Sul Ross State University (Agy. 795-756)
TSUS MELL $10,205.38
Total Sul Ross State University $10,205.38
Lamar University (Agy. 795-734)
TSUS Mell $46,655.40
TSUS-Texas Math Initiative 16,805.95
Total Lamar University $63,461.35
Total Pass Through to Other Agencies (Matrix of Operating Expenses Reported by Function) $162,767.09
Annual Financial Report – for the fiscal year ended August 31, 2009
50
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2A – Miscellaneous Bond Information
Business-Type Activities
Bonds Scheduled Maturities First
Issued To Range of First Last Call
Description of Issue Date Interest Rates Year Year Date
Housing System
Revenue Bonds, Series '86 $3,500,000.00 3.00% 1988 2016 10/01/1996
Utility System
Revenue Bonds, Series '96 4,415,000.00 3.60% - 5.45% 1997 2011 08/01/2006
Total $7,915,000.00
Annual Financial Report – for the fiscal year ended August 31, 2009
51
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2B – Change in Bonded Indebtedness
Business-Type Activities
Bonds Bonds Bonds Bonds Refunded or Bonds Am ounts
Outstanding Issued Matured Extinguished Outstanding Due Within
Description of Issue 9/1/2008 or Retired 8/31/2009 One Year
Housing System
Revenue Bonds, Series '86 $1,295,000 $145,000 $1,150,000 $150,000
Utility System
Revenue Refund Bonds, Series '96 1,170,000 370,000 800,000 390,000
Total $2,465,000 $515,000 $1,950,000 $540,000
(A)
Note A:
Bonds Outstanding Per Schedule $1,950,000
Bonds Payable Per Net Asset Statement $1,950,000
Annual Financial Report – for the fiscal year ended August 31, 2009
52
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2C – Debt Service Requirements
Business-Type Activities
Total
Description of Issue 2010 2011 2012 2013 2014 2015 - 2016 Requirem ents
Housing System
Revenue Bonds, Series '86
Principal $150,000.00 $155,000.00 $160,000.00 $165,000.00 $165,000.00 $355,000.00 $1,150,000.00
Interest 32,250.00 27,675.00 22,950.00 18,075.00 13,125.00 10,725.00 124,800.00
Utility System
Revenue Bonds, Series '96
Principal $390,000.00 $410,000.00 $800,000.00
Interest 41,512.50 21,525.00 63,037.50
Total $613,762.50 $614,200.00 $182,950.00 $183,075.00 $178,125.00 $365,725.00 $2,137,837.50
Less Interest 73,762.50 49,200.00 22,950.00 18,075.00 13,125.00 10,725.00 187,837.50
Total Principal $540,000.00 $565,000.00 $160,000.00 $165,000.00 $165,000.00 $355,000.00 $1,950,000.00
Annual Financial Report – for the fiscal year ended August 31, 2009
53
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2D – Analysis of Funds Available for Debt Service
Business-Type Activities
Revenue Bonds
Pledged and Other Sources and Related Expenditures for the Year
Net available for Debt Service
Total Pledged Operating Expenses/
and Other Expenditures and Debt Service
Description of Issue Sources Capital Outlay Principal Interest
Housing System
Revenue Bonds, Series '86 $43,166,894.31 $36,864,918.00 $145,000.00 $20,487.50
Utility System
Revenue Refund Bonds, Series '96 25,308,385.20 20,361,614.95 370,000.00 55,011.46
Total $68,475,279.51 $57,226,532.95 $515,000.00 $75,498.96
Annual Financial Report – for the fiscal year ended August 31, 2009
54
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2E – Schedule of Defeased Bonds Outstanding
Business-Type Activities
Year Par Value
Description of Issue Refunded Outstanding
Housing System
Revenue Bonds, Series '70 1987 $205,000.00
Total Defeased Bonds $205,000.00
Annual Financial Report – for the fiscal year ended August 31, 2009
55
UNAUDITED
Texas State University-San Marcos (754)
Schedule 2F – Early Extinguishment and Refunding
Not Applicable.
Annual Financial Report – for the fiscal year ended August 31, 2009
56
UNAUDITED
Texas State University-San Marcos (754)
Schedule 3 – Reconciliation of Cash in State Treasury
Cash in State Treasury Unrestricted Current Year Total
Available University Fund $20,243,980.41 $20,243,980.41
Total Cash in State Treasury $20,243,980.41 $20,243,980.41
Annual Financial Report – for the fiscal year ended August 31, 2009
57
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