OVERVIEW
FINANCIAL STATEMENTS 
UCLA
’s financial statements seek to provide an understanding of the scope of operations and the financial health of the campus.  In addition to campuswide financial highlights, sections reflecting key statistical and financial information for each of the academic units, the teaching hospital and the core entities that deliver services to meet the academic, research and public-service missions have been included in this report.  UCLA is a complex entity that also conducts numerous business and support activities.  Each of the campus’ academic and administrative activities plays an important role in contributing to making UCLA a world-class organization.  Descriptions of many of these activities are provided throughout this report.

It is worthy to note that 2000-'01 operations reflected record receipts that exceeded $2.8 billion. With only 24.5 percent of this sum delivered from the State of California, UCLA now relies on tuition, fees, grants, contracts, private donations and sales and service activities to play an increasingly important role in funding operating expense.

ADMINISTRATIVE STRATEGIC INITIATIVES 
During 2000-'01 various administrative initiatives continued to focus on further strengthening campus financial management practices, enhancing and deploying technology in support of the University’s mission, and continuing to improve business processes and the quality of life for members of the campus community.  An extended suite of online reports accessed through the Web made financial data more fully available to campus users with added new functionality.  Standardized online reports and other financial-inquiry tools have increased the ability to deploy up-to-date data for decision-making and financial-management purposes.  The use of electronic means to process various financial transactions has been expanded.  Efforts are also under way to Web-enable the interface to legacy systems for campus users as part of a transitional information-systems plan to further upgrade existing legacy technology and extend the useful lives of those systems.  This plan will enable the campus to defer the costly investment in new enterprise systems until such time as the market for those systems has matured and successful implementation within the higher-education industry has been well-proven.  The initiative to reinforce the need for appropriate financial controls to ensure that the campus will continue to effectively manage public funds in a changing technical and regulatory environment has retained ongoing focus.  These activities have been undertaken with heightened emphasis on streamlining processes, improving management-information tools and meeting increased compliance and regulatory requirements.

Further, the campus has continued the aggressive effort to improve and retrofit its physical plant, a program which, approximating $2 billion in project value under management, is among the largest and most complex of its type in the country. This program includes significant construction efforts continuing to bring about seismic improvement of core campus buildings; progress toward full realization of the Housing Master Plan, including completion of additional undergraduate on-campus housing and graduate family off-campus housing; and construction of comprehensive new hospital and medical research facilities.  This latter group of projects, which will enable seismic retrofit of the Center for the Health Sciences complex and will reposition the medical enterprise for the future, will entail the deployment of more than $1.3 billion across the upcoming decade.

THE REPORT 
 
The intent has been to create a document that conveys necessary financial and related information in a manner that readily communicates the overall nature of UCLA from a financial-operations point of view.   The following pages should provide a sense of the financial health of the institution, retained through emphasis on strong management of the public trust and fostered through significant contributions from its dedicated faculty, staff, students and supporters.

MISSION
The tripartite mission of the University of California is teaching, research and public service. The accompanying annual financial report reflects the resources and expenditures of the Los Angeles campus, which allow UCLA to fulfill this mission. The objective of the Overview is to help readers of the UCLA Annual Financial Report better understand UCLA’s financial activities for the fiscal year ending June 30, 2001. This discussion should be read in conjunction with the financial statements and the notes to the financial statements.

POSITION IN THE UNIVERSITY OF CALIFORNIA SYSTEM
UCLA
is financially the largest campus in the 10-campus University of California system. The majority of financial activity of the campus is reflected within UCLA’s accompanying financial statements for current funds. Investments, the campus’ portion of pooled debt and the retirement system are accounted for on a universitywide basis through the Office of the President and are therefore not reflected in UCLA’s stand-alone financial statements

WIDTH=
Click on arrow to view chart for
Current Funds, All UC Campuses

The above chart reflects the respective revenues and expenditures of the various campuses, along with systemwide programs and administration for the 2000-'01 fiscal year.

 

 

FUNDS FOR CURRENT OPERATIONS
During fiscal year 2000-'01, the fund balance within the current funds group decreased by $20 million to $437,717,000 . The Statement of Current Funds Revenue, Expenditures and Other Changes details the financial activity that occurred.

UCLA receives its funding through a complex structure of governmental appropriations, grants, tuition and fees, gifts and revenue generated from business activities and interest earnings. For the 2000-'01 fiscal year, total receipts reached $2,827,902,000, an increase of 4.3% over the prior year. The expenditures from these sources totaled $2,743,436,000, an increase of 3.2% over the prior period.

Receipts
Click on arrow to view Sources of Funds pie chart
(dollars in thousands)
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  SOURCESzdotcl.gif (807 bytes)zdotcl.gif (807 bytes)

2000-'01
GRAND TOTAL

PERCENT
OF TOTAL
PRIOR YEAR
GRAND TOTAL
PERCENT
OF TOTAL

CHANGE OVER
PRIOR YEAR

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     Tuition and Fees

$ 245,636

8.7%

$  224,681

8.3%

9.3%

     Federal Government 384,655 13.6%

346,398

12.8%

11.0%

     State Government 696,006 24.5%

590,023

21.7%

18.0%

     Local Government 22,464 0.8%

27,680

1.0%

-18.8%

     Private Gifts, Grants & Contracts 223,182 7.9%

211,331

7.8%

5.6%

     Sales & Services-Educational Activities 278,763 9.9%

260,338

9.6%

7.1%

     Sales & Services-Auxiliary Enterprises 215,900 7.6%

216,694

8.0%

-0.4%

     Sales & Services-Teaching Hospitals 725,237 25.7%

801,777

29.6%

-9.5%

     Other Sources 36,059 1.3%

32,002

1.2%

12.7%

     TOTAL RECEIPTS $  2,827,902 zdotcl.gif (807 bytes)

100.0%

$ 2,710,924

100.0%

4.3%

 

Expenditures
Click on arrow to view
Uses of Funds pie chart
 (dollars in thousands)
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USESzdotcl.gif (807 bytes)

2000-'01
Grand Total

Percent
of Total

Prior Year
Grand Total

Percent
of Total

Change Over
Prior Year

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     Instruction

$ 726,198

26.5%

$ 645,872

24.3%

12.4%

     Research

441,054

16.1%

388,518

14.6%

13.5%

     Public Service

41.558

1.5%

31,911

1.2%

30.2%

     Academic Support

250,329

9.1%

238,295

9.0%

5.1%

     Teaching Hospitals

749,637

27.3%

848,084

31.9%

-11.6%

     Student Services

48,865

1.8%

47,807

1.8%

2.2%

     Institutional Support

99,111

3.5%

93,688

3.5%

5.8%

     Operation and Maintenance of Plant

95,548

3.5%

72,715

2.7%

31.4%

     Student Financial Aid

119,243

4.3%

113,572

4.3%

5.0%

     Auxiliary Enterprises

171,893

zdotcl.gif (807 bytes)

6.3%

177,550

6.71%

-3.2%

     TOTAL EXPENDITURES

$ 2,743,436

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100.0%

$ 2,658,012

100.0%

3.2%

 

 

CURRENT FUNDS:

BBALL.GIF (1007 bytes)State Government   BBALL.GIF (1007 bytes)Tuition and Fees   BBALL.GIF (1007 bytes)Federal Government    BBALL.GIF (1007 bytes)Local Government
BBALL.GIF (1007 bytes)Private Gifts and Contracts   BBALL.GIF (1007 bytes)Gifts and Endowments    BBALL.GIF (1007 bytes)The UCLA Foundation
BBALL.GIF (1007 bytes)Sales and Services - Educational Department   BBALL.GIF (1007 bytes)Sales and Services - Auxiliary Enterprises
BBALL.GIF (1007 bytes)Sales and Services - Teaching Hospital   BBALL.GIF (1007 bytes)Other Sources  

STATE GOVERNMENT
The University of California is chartered as an instrumentality of the State of California and approximately 97% of students enrolled in the academic programs of the campus are considered residents of the state for tuition purposes. UCLA continues to rely heavily on state appropriations to maintain its basic academic programs; in the 2000-'01 fiscal year, funding received for this purpose amounted to $635,167,000 . Also, the state, including lottery funds, contributed $41,045,000 toward special programs in such areas as financial aid, tobacco-related diseases, breast cancer, AIDS research and education-improvement outreach programs. In addition to the funds received directly from the state budget, UCLA’s contractual research and training agreements with various state agencies, including California Health and Human Services, California Social Services, and California Business, Transportation and Housing Agency, reached $19,794,000.  This brought the total funds received from the state government for fiscal year 2000-'01 to $696,006,000, an 18% increase over the prior year.

 

 


Click on arrow to view chart showing
Funds Received From the State Over the Last 10 Years

 

TUITION AND FEES
Educational- and student-service costs (recreational programs, social services, student union and financial- assistance programs) are funded in part through the assessment of fees to students.

Enrollment Fall Quarter:
     undergraduates 25,011
     graduates 10,199
     interns and residents 1,680
Annual fees for the 2000-'01 year per student were assessed as follows:
     undergraduate  $3,698.00
     graduate  $4,503.50
     non-residents of California (additional assessment) $10,244.00
     students enrolled in professional schools (additional assessment) $1,500.00-$6,600.00
 

FEDERAL GOVERNMENT
The Federal Government funded a significant portion of UCLA’s total research and training through grants, with revenue totalling $347,975,000 in the 2000-'01 fiscal year and further contracted with the campus for an additional $36,680,000 in services. Research efforts of UCLA are focused on finding solutions to complex problems in areas such as human health, the environment, energy, water and food supply, technology and global quality of life. Total federal revenue for fiscal year 2000-'01 reached $384,655,000, an 11% increase over the prior year.

Click on arrow to view chart showing Major Federal Funding Sources

 

LOCAL GOVERNMENT
Local government funds are received mainly to support educational assistance through Los Angeles County and city government programs.

During 2000-'01, funds were received from the local government for the following programs:

          Health Care $ 15,165,000
          Primary Education Development 2,855,000
          Children's Service 2,571,000
          Other Programs 1,873,000
          Total $ 22,464,000
 

PRIVATE GRANTS AND CONTRACT
Private funds totalling $126,116,,000 were received during 2000-'01 from private industry, philanthropic organizations and others. About 87% of these funds are used for research projects and the remaining amount funds instruction, financial aid and academic support.

GIFTS AND ENDOWMENTS
Over time, UCLA has become more reliant on individuals, foundations and corporations to contribute much-needed funding in support of the campus’ mission. Gifts from these groups come both by way of endowment and expendable donations. Endowment funds benefitting UCLA are administered either centrally by the Office of the President for the 10 University of California campuses or by The UCLA Foundation. The investments are reflected on the books of the Office of the President or the Foundation. Gifts received directly at the campus and gift income from endowment funds transferred from the Foundation along with anticipated pledges are  reflected as revenue and totalled $97,066,000 for 2000-'01.  With the issuance of Governmental Accounting Standards Board (GASB) 33, this is the first year UCLA has booked pledge dollars. The endowment-interest income transferred from the Office of the President is recorded as part of the non-mandatory transfers and totalled $24,311,000 for 2000-'01.

THE UCLA FOUNDATION
The UCLA Foundation is a nonprofit, public-benefit corporation organized for the purpose of accepting and administering the full range of private contributions for the campus. From its inception, the aim of the Foundation has been to link the professional and business worlds with the academic needs that cannot be met through state and other funding sources. The Foundation is empowered by its charter to receive gifts of all kinds as a fully qualified charitable trust. One of the fundamental goals of the Foundation is to identify sources of unrestricted funds that can be applied according to the special needs of the campus. Among the projects at UCLA supported by Foundation funds are student scholarships and fellowships, departmental projects and research. The financial activities of the separately incorporated Foundation are not reflected within the campus’ records until such time as gifts are transferred from the Foundation to the campus. The Foundation issues a separate annual report detailing its financial activity.

The carrying and market values of endowment funds by investment category as of June 30, 2001, reflected by the Office of the President (on behalf of UCLA) and The UCLA Foundation are as follows:

Endowments

Office of the President (The Regents)

Foundation

(dollars in thousands)
Investment Breakdown

Book Value

Market Value

zdotcl.gif (807 bytes) zdotcl.gif (807 bytes)

Book Value

Market Value

zdotcl.gif (807 bytes)
General Endowment Pool

$ 266,785

$  831,055

$              -

$            -

High Investment Pool

2,173

3,542

-

-

Long Term Investment Pool

-

-

417,576

436,489

Short Term Investment Pool

19,413

19,413

25,590

25,590

Mortgage

401

401

-

-

Separate/Other Investment

634

744

zdotcl.gif (807 bytes) zdotcl.gif (807 bytes)

3,779

5,527

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Total

$ 289,406

$ 855,155

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$ 446,945

$ 467,6066

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Prior Year Totals

$ 255,243

$ 918,114

$ 419,599

$ 468,376

The Foundation also held investments of other gift money with a market value of $ 119,692,000 at June 30, 2001.
 

 

SALES AND SERVICES BY EDUCATIONAL DEPARTMENTS
Revenue is earned from the sale of scholarly materials and through the provision of expertise and services to outside entities. These include computing, publications, laboratory research, tests and testing, assays, conferences and seminars, a wide range of clinics, faculty medical practice providing patient care, interlibrary loans and many other activities. All goods and services are billed to outside users at rates approved by the campus recharge committee. Not recorded as revenue are the services internally recharged to the campus community.

SALES AND SERVICES BY AUXILIARY ENTERPRISES
In 2000-'01, the majority of Auxiliary Enterprises' self-supporting funds were spent on the ongoing activities of and enhancements to the UCLA living and business environment.

The auxiliary enterprises within Business Enterprises produced revenues of $121,148,000. Business Enterprises supports five on-campus residence halls with approximately 6,820 beds; off-campus apartments accommodating 2,100 residents; a facility for campus and hospital visitors; faculty apartments; vending services, conference and events management; and, the Lake Arrowhead Conference Center and Bruin Woods Family Resort. Parking and Commuter Services manages more than 22,000 parking spaces within 15 structures and 28 surface lots, as well as a ride-sharing program.

Intercollegiate Athletics’ revenues in 2000-'01 reached $33,800,000. Intercollegiate Athletics sponsored approximately 205 events during 2000-'01. Among other accomplishments, this year UCLA won NCAA championships in men's and women's water polo, women's indoor track and field and women's gymnastics; Pac-10 championships inwomen's swimming and women's outdoor tack and field; and MPSF championships in men's water polo and men's volleyball. UCLA competes in 21 sports at the intercollegiate level.

ASUCLA’s student union and bookstore, with revenues of $57,966,000, continues to offer a diverse array of books, computers, gifts, general goods and restaurants to the UCLA community.

SALES AND SERVICES BY TEACHING HOSPITAL
The UCLA Medical Center is one of the most well-known and technologically advanced medical-care facilities in the country and is the primary teaching hospital for the UCLA School of Medicine. For 2000-'01, the largest portion, 25.7%, of campus revenue came from the teaching hospital, totalling $725,237,000.The Westwood Medical Center and the Santa Monica Hospital operate on a nonprofit, self-supporting basis. Their financial activities are incorporated within the accompanying UCLA financial statements. Additionally, a separately audited financial statement is prepared by the hospital detailing specific revenue and expenditure activities, as well as assets and related liabilities.

OTHER SOURCES
"Other sources" identifies campus units whose main business is to service the UCLA campus departments, but which also earn revenue from the surrounding community. Among those departments are Community Safety, UCLA Performing Arts, Cultural and Recreational Affairs, Transportation Services, Arthur Ashe Student Health and Wellness Center, Communication Technology Services, Marine Science Center and the off-campus work-study program.

 

PROPERTY, PLANT AND EQUIPMENT FUNDS

zdotcl.gif (807 bytes)
419 acres
13 libraries
297 buildings
15 parking structures
28 surface parking lots
Assets at cost or donated value $ 4,120,052,000
Locally held long term indebtedness $ 314,017,000   *
* Locally held long term indebtedness for 2000-'01 is listed in the notes to the financial statement (note 5).
 

Plant funds consist of monies designated for expansion and improvement of all physical facilities belonging to UCLA, including capital equipment, real estate and the libraries’ collections. Assets at cost or donated value at the time of gift amounted to $4,120,052,000 as of June 30, 2001. The most significant components -- land, buildings, and improvements -- represent approximately $2,428,613,000 and equipment represents $739,174,000 of total plant assets. In an ongoing effort to continue to maintain and improve the Los Angeles campus, construction projects with cumulative expenditures of $368,182,000 were in progress on June 30, 2001. UCLA continues with the construction of a technologically innovative, 525-bed hospital to replace its existing medical center, a 1951-vintage structure weakened nearly six years ago in the Northridge earthquake. The core and shell project has an approved budget of $672,700,000 -- the Federal Emergency Management Agency provided $432 million in earthquake relief toward the project and, California state matching funds have provided $44 million, with additional funds provided from external sources. In addition, California state lease-revenue bonds have been approved for $125 million. Construction of the replacement hospital forms the centerpiece of a $1.3-billion project to replace and repair earthquake-damaged portions of UCLA's health sciences complex. Plans also include construction of three replacement research and education buildings, demolition of a significant portion of the existing buildings, an earthquake retrofit of the remaining structures and an underground parking structure.

The UCLA Library comprises a campuswide network of libraries serving programs of study and research in many fields. Its principal components are the Charles E. Young Research Library and the College Library. There are also 11 subject libraries and other specialized and unaffiliated libraries, including William Andrews Clark Memorial Library. In addition, the libraries hold important collections of manuscripts, oral-history transcripts, archives, technical reports, government publications, photographs, maps, microfilms, audiovisual materials, corporate reports and other scholarly resources. The total collections of the UCLA Library, at June 30, 2001, numbers more than 7.56 million volumes valued at $419,353,000.  In addition, the special collections within the museums and galleries totalled $34,861,000.

 

LOAN FUNDS

         Loan Notes Receivable            $ 81,282,000

Loan notes receivable are listed in the footnotes to the financial statement (note 3).

Loan funds consist of monies designated for loans to students, faculty and staff. Student loan funds are provided from federal student loan programs, university funds and private donations. Long-term loans to students are a significant part of the financial aid package, where repayment usually begins upon graduation. Also available are 30-day emergency student loans, employee loans and short-term faculty housing loans.

 


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