REVENUE AND EXPENDITURE/EXPENSE ANALYSIS

Transcription

1 THE UNIVERSITY OF TEXAS SYSTEM OFFICE OF THE CONTROLLER REVENUE AND EXPENDITURE/EXPENSE ANALYSIS Update 201 Seventh Street, ASH 5 th Floor Austin, Texas

2 Management Discussion Total U. T. System Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends Total U. T. Academic Institutions Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends Total U. T. Health Institutions Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. System Administration Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Arlington Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Austin Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Brownsville Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends

3 U. T. Dallas Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. El Paso Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Pan American Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Permian Basin Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. San Antonio Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Tyler Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Southwestern Medical Center Dallas Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Medical Branch Galveston Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends

4 U. T. Health Science Center Houston Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Health Science Center San Antonio Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. M. D. Anderson Cancer Center Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends U. T. Health Science Center Tyler Revenue & Expenditure Analysis Pie Charts Summary of Actual Revenue & Expenditure Trends Graphs of Actual Revenue Trends Graphs of Actual Expenditure Trends

5 The University of Texas System Revenue and Expenditure/Expense Analysis Fiscal Years During the year ended August 31, 2002, the University of Texas System (the System) adopted Governmental Accounting Standards Board (GASB) Statement No. 35, Basic Financial Statements Management s Discussion and Analysis for Public Colleges and Universities, as amended by GASB Statements No. 37, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments: Omnibus, and GASB Statement No. 38, Certain Financial Statement Note Disclosures. These statements establish standards for external financial reporting for public colleges and universities and require that financial statements be presented on a consolidated basis to focus on the entity as a whole. Previously, financial statements focused on the accountability of individual fund groups rather than on the entity as a whole. Because of the change in the financial reporting model, certain differences exist between the amounts reported as revenue and expenditures in FY 1999 through FY 2001 and the revenue and expense totals for FY 2002 through FY The Revenue and Expenditure Analyses prepared in years prior to FY 2002 were prepared under the old method of financial reporting and differ from the categorization of revenues and expenses on the FY 2002 and future Statements of Revenues, Expenses and Changes in Net Assets (SRECNA). On the tenyear comparative graphs presented in this analysis, similar items from both models (e.g. general revenue, tuition and fees) have been plotted on the same charts; however, in most cases, variations exist between years before and after the change. A detailed discussion of each component of revenues and expenditures/expenses follows: Revenues: TUITION AND FEES All student tuition and fee revenues earned at the U. T. institution for educational purposes. Beginning with FY 2002, an adjustment to discount tuition and related scholarship/fellowship activities in accordance with GASB rules has been recorded. Tuition and fee income paid from institutional scholarship funds is not discounted in the prior years. SPONSORED PROGRAMS Funding received from local, state and federal governments or private agencies, organizations or individuals. Includes amounts received for services performed on grants, contracts, and agreements from these entities for current operations. In years prior to FY 2002, this primarily included sponsored research and services paid from Restricted funds. Contract and grant income such as that related to the Texas Southmost College/U. T. Brownsville agreement or TEXAS Grants were not included because they were recorded in other fund groups (i.e. E&G, Designated). Beginning with FY 2002, sponsored programs includes all related revenues without regard to fund group. Although Overhead on Sponsored Projects (Indirect Cost Recoveries) is reported as in the SRECNA for 2002 through 2008, it has been separately reported for purposes of this analysis in all years. NET SALES AND SERVICES OF EDUCATIONAL ACTIVITIES Revenues that are related to the conduct of instruction, research, and public service and revenues from activities that exist to provide an instructional and laboratory experience for students that create goods and services that may be sold. This category was not reported prior to FY HEALTH CARE Revenues (net of discounts, allowances, and bad debt expense) generated from U.T. health institutions daily patient care, special or other services, as well as revenues from health clinics that are part of a hospital. Also includes revenues (net of discounts, allowances, and bad debt expense) derived from the fees charged by the professional staffs at U.T. health institutions as part of the Medical Practice Plans. Examples of such fees include doctor s fees for clinic visits, medical and dental procedures, professional opinions, and anatomical procedures, such as analysis of specimens

6 after a surgical procedure, etc. In all years, correctional care related activities at U. T. Medical Branch at Galveston have been included in this category. Except for the potential for income from certain contracts within the practice plans to be reflected as, significant differences do not appear to exist in the methodology for this line item. AUXILIARY ENTERPRISES Revenues derived from a service to students, faculty, or staff in which a fee is charged that is directly related to, although not necessarily equal to the cost of the service (e.g., bookstores, dormitories, dining halls, snack bars, intercollegiate athletic programs, etc.). Differences for years before and after FY 2002 may exist due to adjustments made for scholarship/fellowship activities in a manner similar to the discounting of tuition and in accordance with GASB rules. OTHER For FY 2002 and future years, this includes Operating Revenue and Nonoperating Revenues reported on the SRECNA. Operating Revenues are generated from sales or services provided to meet current fiscal year operating expenses, which are not included in one of the preceding categories. Nonoperating Revenues are those not directly associated with the primary missions of System institutions and not included in another category. In prior years, included a variety of revenue and nonrevenue items such as the Texas Southmost College/U. T. Brownsville agreement and Available University Fund Support for U. T. Austin and U. T. System Administration. GENERAL REVENUE Appropriations from the State Fund, which supplement the U. T. institutional revenue in meeting operating expenses, such as faculty salaries, utilities, and institutional support. Also includes Higher Education Assistance Funds (HEAF), which is a source of state appropriated general revenue to U. T. Brownsville and U. T. Pan American. HEAF is appropriated for construction, library and equipment expenses for Texas public universities that do not benefit from the Permanent University Fund (PUF) bond proceeds. Differences exist for years before and after FY 2002 due to the inclusion of Statepaid staff benefits on the 2002 and future SRECNAs and exclusion of those benefits from prior year totals. GIFT CONTRIBUTIONS FOR OPERATIONS Consist of public and private gifts used in current operations, excluding gifts for capital acquisition and endowment gifts. In years prior to 2002, this category was based on the Gifts and Grants and included endowment income that supported restricted activities such as scholarships, fellowships and endowed chairs/professorships. NET INVESTMENT INCOME Interest and dividend income, Long Term Fund and Permanent Health Fund distributions paid from current year income and patent and royalty income. Unrealized gains or losses on investment assets of the System are also included. No comparable figures exist for years prior to FY DESIGNATED ACTIVITIES This category is not comparable between FY 2002 and prior years. In years prior it included all income recorded in Designated Funds that was not related to tuition and fees, correctional care or practice plan activities. In FY 2002 and future years, this revenue has been included in the appropriate SRECNA categories (primarily Sales and Services of Educational Activities, and ). Expenditures/Expenses: PERSONNEL COSTS Costs of salaries, wages and associated fringe benefits for faculty and staff. This category differs for years before FY 2002 due to the exclusion of Statepaid staff benefits in those prior years. MAINTENANCE, OPERATIONS, EQUIPMENT HOSPITALS AND CLINICS Nonpersonnel expenditures of U. T. healthrelated institutions with teaching hospital affiliations for costs associated with providing patient care and operating the entity (i.e., labs, pharmacies, etc.)

7 MAINTENANCE, OPERATIONS, EQUIPMENT ALL OTHER Nonpersonnel expenditures by U. T. institutions for departmental operations, maintenance of facilities, utilities, etc. and not related to hospital and clinic activities. DEPRECIATION AND AMORTIZATION Systematic allocation of longlived assets such as buildings, infrastructure and equipment to current period operations. Depreciation was not included in the System s financial statements prior to FY INTEREST EXPENSE ON CAPITAL ASSET FINANCING Interest expense associated with bond and note borrowings utilized to finance capital improvement projects. With the exception of Constitutional Appropriation Bonds at U. T. Pan American and debt associated with the Suida Manning Art Collection at U. T. Austin, U. T. System Administration reports all interest expense as the debt legally belongs to the Board of Regents. In prior years, this total, along with associated principal repayments, was reported as part of Capital Projects and Debt Service. CAPITAL PROJECTS AND DEBT SERVICE This category is no longer used beginning with FY In prior years, this category included capital outlay paid from operating funds and principal and interest payments on debt. Notes: The Revenues and Expenses totals presented for the System agree to those in the System s consolidated Annual Financial Report. Also included in this report are combined totals for the health institutions, the academic institutions and the U. T. System Administration. To prevent the double counting of the same funds as revenue and expenses, eliminations are made during the Systemwide consolidation process. Because these eliminations have not been reflected in the totals of the health institutions, academic institutions and the U. T. System Administration presented in this report, it is not possible to add these three summaries together to arrive at the amounts presented for the System. Due to the implementation of GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits than Pensions (OPEB) in 2008, the System reported $422.7 million for the net OPEB obligation liability. GASB 45 requires accrualbased measurement and recognition of OPEB expenses, such as retiree medical and dental costs, over the employees years of service, along with the related liability. Pursuant to GASB 45, the System has accrued the liability and is recognizing it over a 30year period so that the increase in the liabilities does not occur all in one year. The System is not required to fund the OPEB liability; instead, the difference between the OPEB cost and the System s contributions to the plan will increase the unfunded actuarial accrued liability. As a result, the expense category of Maintenance, Operation, and Equipment All shows a significant increase between 2007 and 2008 for both the combined System and for the U. T. System Administration, where the liability and expense are recorded.

8 UNIVERSITY OF TEXAS SYSTEM FY 2008 $10.3 Billion in Revenue 40% 38.92% 35% 30% 25% 20% 20.16% 19.21% 15% 10% 9.97% 5% 2.86% 3.33% 0.94% 3.59% 2.26% 3.29% 0% 5% $11.2 Billion in Expenses Equip. Hospitals & Clinics 10.03% 59.46% Interest Expense on Cap. Asset Financing 1.45% Depreciation & Amortization 6.08% Equip. All 22.98%

9

10 UNIVERSITY OF TEXAS SYSTEM FY 2006 $11.3 Billion in Revenue Net Investment Income Net 20.34% Gift Contributions for Investment Income Gift 2.25% Contributions for 20.34% 2.25% Overhead on Sponsored Programs Overhead on Tuition and Fees 2.46% Sponsored 7.54% Programs Designated Tuition Activities and Fees 2.46% 0.00% 7.54% Sponsored Programs 16.40% 16.40% 15.42% 15.42% 2.65% 0.99% 0.99% 2.65% Health Care 29.73% Health Care 29.73% Sales & Services of Educational Activities Sales 2.23% & Services of Educational Activities 2.23% $9.4 Billion in Expenses 61.67% 61.67% Interest Expense on Cap. Asset Financing 1.81% Equip. Hospitals & Clinics Equip. Hospitals 10.97% & Clinics 10.97% Equip. All 19.61% Depreciation & Capital Interest Projects Expense & on Amortization Debt Cap. Service Asset Equip. All 5.93% 0.00% Financing 19.61% Depreciation 1.81% & Amortization 5.93%

11 UNIVERSITY OF TEXAS SYSTEM FY 2005 $11.6 Billion in Revenue Net Investment Income 28.17% Net Investment Income 28.17% Gift Contributions for Gift Contributions for 2.30% 2.30% 13.52% 13.52% 2.48% 0.97% 0.97% 2.48% Overhead on Sponsored Programs Overhead on Tuition and Fees 2.56% Sponsored 6.80% Programs Designated Tuition Activities and Fees 2.56% 0.00% Sponsored 6.80% Programs 14.50% 14.50% Health Care 26.57% Health Care 26.57% Sales & Services of Educational Activities 2.14% Sales & Services of Educational Activities 2.14% $8.6 Billion in Expenses 62.06% Equip. Hospitals & Equip. Hospitals & Clinics Clinics 10.81% 10.81% Equip. All 20.03% 62.06% Interest Expense on Cap. Asset Financing 1.56% Depreciation Equip. & All Capital Interest Projects Expense & on Amortization20.03% Debt Cap. Service Asset 5.53% Depreciation 0.00% Financing & Amortization 1.56% 5.53%

12 UNIVERSITY OF TEXAS SYSTEM FY 2004 $9.4 Billion in Revenue Net Investment Income 19.03% Net Investment Gift Contributions for Income Gift Contributions for 19.03% 1.94% 1.94% 16.88% 16.88% Auxiliary Enterprises 1.96% 1.96% 2.61% 2.61% Overhead on Sponsored Overhead on Tuition and Fees Programs Sponsored 7.19% 2.96% Programs Designated Tuition Activities and Fees 2.96% 0.00% 7.19% Sponsored Programs 17.45% 17.45% Health Care 27.59% Health Care 27.59% Sales & Services of Educational Activities Sales 2.39% & Services of Educational Activities 2.39% $7.8 Billion in Expenses 63.23% Equip. Hospitals & Equip. Hospitals & Clinics Clinics 10.12% 10.12% 63.23% Interest Expense on Cap. Asset Financing 1.17% Equip. All 20.67% Interest Depreciation Expense on & Capital Projects Equip. & All Cap. Amortization Debt Service Asset 20.67% Financing 4.81% Depreciation 0.00% & Amortization 1.17% 4.81%

13 UNIVERSITY OF TEXAS SYSTEM FY 2003 $8.7 Billion in Revenue Net Investment Income 18.40% Gift Contributions for Net Investment Income Gift 2.23% Contributions for 19.03% 1.94% 18.34% 16.88% 1.96% 2.61% 2.17% 2.80% Overhead on Sponsored Overhead on Tuition and Fees Programs Sponsored 6.83% 2.98% Programs Designated Tuition Activities and Fees 2.96% 0.00% 7.19% Sponsored Programs 17.50% 17.45% Health Care 27.59% Health Care 26.77% Sales & Services of Educational Activities Sales 2.39% & Services of Educational Activities 1.98% $7.3 Billion in Expenses 63.86% Maint., Oper., Maint., & Oper., & Equip. Hospitals Equip. Hospitals & & Clinics Clinics 10.12% 10.05% 63.23% Interest Expense on Cap. Asset Financing 1.22% Equip. All 20.67% Interest Depreciation Expense on & Capital Projects Equip. & All Cap. Amortization Debt Service Asset 20.33% Financing 4.81% Depreciation 0.00% & Amortization 1.17% 4.54%

14 UNIVERSITY OF TEXAS SYSTEM FY 2002 $6.2 Billion in Revenue 40% 35% 34.02% 30% 25% 22.68% 26.12% 20% 15% 10% 8.48% 5% 2.83% 3.50% 3.69% 3.17% 3.76% 0% 8.26% 5% 10% Tuition and Fees Sponsored Programs Sales & Services of Educational Activities Health Care Auxiliary Enterprises General Revenue Gift Contributions for Net Investment Income Overhead on Sponsored Programs $6.9 Billion in Expenses 63.23% 62.53% Equip. Hospitals Maint., & Oper., & ClinicsEquip. Hospitals & 10.06% Clinics 10.12% Equip. All 21.81% Interest Expense on Cap. Asset Financing 1.17% Interest Depreciation Expense & on Amortization Cap. Asset Financing 4.81% 1.31% Maint., Depreciation Oper., & Equip. Amortization All 20.67% 4.29%

15 UNIVERSITY OF TEXAS SYSTEM FY 2001 $6.4 Billion in Revenue Overhead on Gift Contributions for Sponsored Programs 4.76% 2.64% Gift Contributions 21.34% for 4.76% Overhead on Sponsored Programs Designated 2.64% Activities 9.01% Designated Activities Tuition 9.01% and Fees 8.35% Sponsored Programs Tuition and Fees 15.87% 8.35% Sponsored Programs 15.87% 21.34% 2.94% 2.94% 4.08% 4.08% Health CareHealth Care 31.01% 31.01% $6.0 Billion in Expenditures 60.39% 60.39% Equip. Hospitals & Clinics 13.10% Equip. Hospitals & Clinics Maint., 13.10% Oper., & Equip. All 21.14% Capital Projects & Debt Service 5.38% Capital Projects & Debt Service 5.38% Equip. All 21.14%

16 UNIVERSITY OF TEXAS SYSTEM FY 2000 $6.0 Billion in Revenue Overhead on Sponsored Gift Contributions Programs for 2.57% 3.01% Gift Contributions for General 3.01% Revenue 22.76% 22.76% Overhead on Sponsored Designated Activities Programs 8.94% Designated 2.57% Activities Tuition and Fees 8.94% 7.92% Tuition and Fees 7.92% Sponsored Programs Sponsored 16.08% Programs 16.08% 3.72% 3.72% Auxiliary Enterprises 5.03% 5.03% Health Health Care Care 29.97% 29.97% $5.5 Billion in Expenditures 61.48% 61.48% Equip. Hospitals & Clinics 12.98% Equip. Maint., Oper., Hospitals & & Equip. Clinics All 20.25% 12.98% Capital Projects & Debt Service 5.29% Equip. All 20.25% Capital Projects & Debt Service 5.29%

17 UNIVERSITY OF TEXAS SYSTEM FY 1999 $5.3 Billion in Revenue Overhead on on Sponsored Programs Designated Designated Activities Activities 2.62% 2.62% 7.27% 7.27% Gift Contributions for Gift Contributions for 3.22% 3.22% General 23.80% Revenue 23.80% Tuition Tuition and and Fees Fees 8.37% 8.37% Sponsored Programs 16.51% 2.70% 2.70% Auxiliary 4.92% 4.92% Health Care 30.60% Health Care 30.60% $5.1 Billion in Expenditures Personnel 61.67% Costs 61.67% Equip. Hospitals & Clinics 11.68% Equip. Hospitals & Clinics 11.68% Capital Projects & Debt Service 6.06% Maint., Oper., Equip. & All Capital Projects & Equip. All 20.59% Debt Service 20.59% 6.06%

18 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL REVENUE AND EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH 2008 REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees $ 441,593, ,672, ,740, ,797, ,010, ,107, ,460, ,460, ,296,162 1,024,009, ,580, ,409,686 1,022,138,050 1,409,187,200 1,519,564,418 1,638,600,150 1,677,960,211 1,858,257,010 1,926,180,085 2,071,205,233 Sales & Services of Educational Activities 175,801, ,897, ,277, ,278, ,493, ,473, ,708,853 Health Care 1,613,737,086 1,792,133,846 1,997,547,594 2,113,497,392 2,325,104,781 2,590,472,141 3,074,917,686 3,368,160,973 3,775,970,733 3,999,306, ,549, ,096, ,504, ,379, ,586, ,642, ,052, ,920, ,421, ,064, ,236, ,166, ,089, ,177, ,389, ,728, ,483, ,987, ,620,745 96,638,179 1,255,065,982 1,361,166,793 1,374,458,227 1,622,530,012 1,592,777,843 1,585,193,463 1,564,669,950 1,747,137,850 1,772,102,752 1,973,719,229 Gift Contributions for 170,046, ,782, ,680, ,089, ,936, ,915, ,764, ,782, ,498, ,785,870 Net Investment Income (513,212,808) 1,598,249,292 1,786,973,201 3,260,531,186 2,305,134,824 3,462,461,171 (232,273,247) Overhead on 138,256, ,827, ,104, ,800, ,547, ,200, ,833, ,489, ,378, ,561,534 Designated Activities 383,310, ,910, ,442,110 $ 5,274,376,063 5,980,166,669 6,440,706,621 6,212,048,808 8,685,063,256 9,389,110,156 11,573,952,075 11,330,825,256 13,302,403,725 10,274,724,911 EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $ 3,135,885,591 3,394,633,812 3,645,104,581 4,336,459,736 4,692,814,569 4,901,407,292 5,359,523,174 5,797,291,777 6,147,293,245 6,646,066,422 Equip. Hospitals & Clinics 593,884, ,577, ,461, ,704, ,483, ,324, ,997,881 1,031,224,354 1,066,205,200 1,121,061,333 Equip. All 1,047,018,786 1,118,064,306 1,276,042,852 1,512,448,306 1,494,277,610 1,602,705,900 1,729,834,476 1,843,017,932 1,939,477,679 2,568,741,421 Depreciation & Amortization 297,507, ,414, ,830, ,825, ,751, ,913, ,831,346 Interest Expense on Cap. Asset Financing 90,644,496 89,697,527 90,945, ,004, ,567, ,987, ,687,052 Capital Projects & Debt Service 308,118, ,879, ,460,962 $ 5,084,907, ,521,155, ,036,069, ,934,764, ,348,688, ,752,212, ,636,185,403 9,399,853, ,937,876, ,177,387, % CHANGE IN REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees 7.10% 7.26% 13.53% 2.03% 12.57% 13.84% 16.49% 8.65% 13.32% 5.75% 8.27% 10.43% 6.32% 37.87% 7.83% 7.83% 2.40% 10.74% 3.66% 7.53% Sales & Services of Educational Activities N/A N/A N/A N/A 2.22% 30.47% 10.26% 2.11% 22.17% 4.79% Health Care 7.23% 11.05% 11.46% 5.80% 10.01% 11.41% 18.70% 9.54% 12.11% 5.91% 12.21% 16.01% 12.82% 17.19% 12.06% 0.43% 17.34% 4.48% 9.17% 4.47% 21.18% 56.20% 14.89% 21.20% 17.80% 2.47% 38.78% 0.44% 39.86% 38.30% 0.96% 8.45% 0.98% 18.05% 1.83% 0.48% 1.29% 11.66% 1.43% 11.38% Gift Contributions for 19.62% 5.73% 70.58% 35.73% 1.60% 6.20% 46.09% 4.13% 11.66% 29.63% Net Investment Income N/A N/A N/A N/A % 11.81% 82.46% 29.30% 50.21% % Overhead on 4.75% 11.26% 10.58% 37.45% 10.58% 7.60% 6.70% 6.18% 15.04% 5.36% Designated Activities 2.22% 39.55% 8.51% N/A N/A N/A N/A N/A N/A N/A 4.95% 13.38% 7.70% 3.55% 39.81% 8.11% 23.27% 2.10% 17.40% 22.76% % CHANGE IN EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY % 8.25% 7.38% 18.97% 8.22% 4.44% 9.35% 8.17% 6.04% 8.11% Equip. Hospitals & Clinics 15.91% 20.66% 10.31% 11.73% 5.84% 6.21% 19.08% 10.41% 3.39% 5.14% Equip. All 5.57% 6.79% 14.13% 18.53% 1.20% 7.26% 7.93% 6.54% 5.23% 32.45% Depreciation & Amortization N/A N/A N/A N/A 12.07% 11.82% 28.16% 16.73% 12.40% 8.44% Interest Expense on Cap. Asset Financing N/A N/A N/A N/A 1.04% 1.39% 48.45% 26.34% 7.38% 2.34% Capital Projects & Debt Service 26.40% 5.27% 11.16% N/A N/A N/A N/A N/A N/A N/A 7.33% 8.58% 9.33% 14.89% 5.97% 5.49% 11.40% 8.84% 5.72% 12.47%

19 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH ,200 Tuition and Fees 2,500 1, ,024 2,000 1,500 1, ,022 1,409 1,520 1,639 1,678 1,858 1,926 2, Sales & Services of Educational Activities 4,000 Health Care 3,776 3, ,500 3,000 2,500 2,000 1,500 1,614 1,792 1,998 2,113 2,325 2,590 3,075 3, ,

20 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH ,000 1,800 1,600 1,255 1,400 1,361 1,374 1,623 1,593 1,585 1,565 1,747 1,772 1, Gift Contributions for ,200 1, ,500 Net Investment Income 3,261 3,462 Overhead on ,000 2,500 2,000 1,598 1,787 2, ,500 1, (500) (513) (232) 50 (1,000) 600 Designated Activities

21 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH ,000 6,000 5,360 5,797 6,147 6,646 1,200 1,000 Equip. Hospitals & Clinics 1, ,066 1,121 5,000 4,000 3,136 3,395 3,645 4,336 4,693 4, ,000 2, , ,000 Equip. All 700 Depreciation & Amortization ,500 2, ,000 1,500 1,047 1,118 1,276 1,512 1,494 1,603 1,730 1,843 1, , Interest Expense on Cap. Asset Financing Capital Projects & Debt Service

22 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2008 $3.5 Billion in Revenue 26.55% Gift Contributions for 4.15% Net Investment Income 0.11% Overhead on Sponsored Programs 2.99% Tuition and Fees 27.19% 0.70% Auxiliary Enterprises 7.53% Sales & Services of Educational Activities 5.57% Sponsored Programs 25.20% $3.6 Billion in Expenses Equip. All 31.27% 61.55% Interest Expense on Cap. Asset Financing 0.00% Depreciation & Amortization 7.18%

23

24 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2006 $3.3 Billion in Revenue Gift Contributions for 3.40% Net Investment Income 11.15% Overhead on Sponsored Programs 2.81% Tuition and Fees 23.60% 24.07% 0.74% 6.70% Sales & Services of Educational Activities 4.89% Sponsored Programs 22.65% $3.1 Billion in Expenses 62.28% Equip. All 31.09% Interest Expense on Cap. Asset Financing 0.05% Depreciation & Amortization 6.57%

25 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2005 $3.2 Billion in Revenue Gift Contributions for 3.09% 22.90% Net Investment Income 14.56% Overhead on Sponsored Programs 2.77% Tuition and Fees 22.60% 0.67% 6.79% Sales & Services of Educational Activities 4.86% Sponsored Programs 21.75% $2.9 Billion in Expenses 62.23% Equip. All 31.17% Interest Expense on Cap. Asset Financing 0.07% Depreciation & Amortization 6.54%

26 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2004 $2.8 Billion in Revenue Gift Contributions for 2.78% 25.74% Net Investment Income 10.95% Overhead on Sponsored Programs 2.89% Tuition and Fees 22.07% 0.84% 6.77% Sales & Services of Educational Activities 4.70% Sponsored Programs 23.27% $2.6 Billion in Expenses 63.47% Equip. All 30.92% Depreciation & Amortization 5.53% Interest Expense on Cap. Asset Financing 0.08%

27 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2003 $2.6 Billion in Revenue Gift Contributions for 3.66% 28.42% Net Investment Income 7.07% Overhead on Sponsored Programs 3.07% Tuition and Fees 21.38% 0.64% 7.51% Sales & Services of Educational Activities 4.64% Sponsored Programs 23.62% $2.5 Billion in Expenses 64.63% Equip. All 30.02% Depreciation & Amortization 5.26% Interest Expense on Cap. Asset Financing 0.09%

28 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2002 $2.1 Billion in Revenue 40% 35% 34.30% 30% 25% 22.71% 26.54% 20% 15% 10% 5% 4.67% 7.80% 2.58% 4.54% 3.35% 0% 5% 10% Tuition and Fees Sponsored Programs Sales & Services of Educational Activities Auxiliary Enterprises General Revenue Gift Contributions for 6.49% Net Investment Income Overhead on Sponsored Programs $2.4 Billion in Expenses 63.30% Equip. All 31.46% Interest Expense on Cap. Asset Financing 0.03% Depreciation & Amortization 5.21%

29 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2001 $2.3 Billion in Revenue Gift Contributions for 9.47% Overhead on Sponsored Programs 2.13% Designated Activities 7.09% Tuition and Fees 21.89% 27.37% 6.54% 7.26% Sponsored Programs 18.26% $2.1 Billion in Expenditures 60.75% Equip. All 30.94% Capital Projects & Debt Service 8.30%

30 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 2000 $2.0 Billion in Revenue Gift Contributions for 5.13% Overhead on Sponsored Programs 2.17% Designated Activities 7.01% Tuition and Fees 21.57% 30.53% 7.18% 7.82% Sponsored Programs 18.59% $1.9 Billion in Expenditures 61.49% Equip. All 30.10% Capital Projects & Debt Service 8.41%

31 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS FY 1999 $1.8 Billion in Revenue 30.26% Gift Contributions for 5.61% Overhead on Sponsored Programs 2.30% Designated Activities 6.77% Tuition and Fees 22.51% 5.99% 7.59% Sponsored Programs 18.97% $1.7 Billion in Expenditures 62.13% Equip. All 29.80% Capital Projects & Debt Service 8.07%

32 UNIVERSITY OF TEXAS ACADEMIC INSTITUTIONS SUMMARY OF ACTUAL REVENUE AND EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH 2008 REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees $ 405,343, ,395, ,117, ,298, ,222, ,306, ,490, ,730, ,131, ,155, ,712, ,946, ,370, ,320, ,493, ,283, ,322, ,128, ,097, ,339,701 Sales & Services of Educational Activities 99,871, ,456, ,299, ,073, ,179, ,908, ,771, ,696, ,577, ,096, ,613, ,851, ,118, ,110, ,553, ,218, ,724, ,819, ,546, ,777,560 55,198,829 16,442,304 23,855,106 21,426,262 24,822,785 30,144,973 24,100, ,015, ,071, ,662, ,024, ,164, ,370, ,106, ,420, ,512, ,202,237 Gift Contributions for 101,063, ,087, ,512,931 97,107,088 93,560,900 78,813,963 99,243, ,628, ,066, ,780,666 Net Investment Income (138,770,322) 180,773, ,854, ,368, ,132, ,228,516 3,868,078 Overhead on 41,498,122 44,078,618 48,540,207 71,622,359 78,444,368 82,045,844 89,083,527 93,792,503 97,210, ,569,172 Designated Activities 121,878, ,118, ,279,266 $ 1,801,027,302 2,027,821,651 2,275,357,080 2,137,286,239 2,555,409,749 2,837,948,719 3,210,225,525 3,338,389,115 3,847,518,924 3,461,510,779 EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $ 1,081,930,967 1,173,935,769 1,280,416,790 1,498,358,845 1,633,210,879 1,645,208,917 1,782,784,568 1,941,289,134 2,083,667,844 2,210,849,870 Equip. All 518,886, ,739, ,139, ,686, ,658, ,457, ,934, ,087,165 1,022,104,546 1,123,198,176 Depreciation & Amortization 123,210, ,978, ,446, ,286, ,914, ,686, ,923,931 Interest Expense on Cap. Asset Financing 726,288 2,169,654 1,973,607 2,027,193 1,548,832 1,517,935 Capital Projects & Debt Service 140,573, ,590, ,979,748 $ 1,741,390,372 1,909,266,130 2,107,535,652 2,366,982,067 2,527,017,285 2,592,086,490 2,865,032,947 3,116,839,253 3,351,976,814 3,591,971,977 % CHANGE IN REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees 7.30% 7.91% 13.88% 2.57% 12.55% 14.66% 15.84% 8.58% 13.38% 5.38% 1.46% 10.31% 10.19% 36.58% 6.38% 9.41% 5.76% 8.28% 5.82% 9.03% Sales & Services of Educational Activities N/A N/A N/A N/A 18.61% 12.53% 17.08% 4.55% 17.61% 0.45% 2.03% 16.01% 4.11% 0.92% 15.15% 0.14% 13.53% 2.50% 10.59% 5.46% 16.71% 34.99% 2.22% 62.90% 70.21% 45.08% 10.18% 15.85% 21.44% 20.05% 1.18% 13.59% 0.58% 17.72% 0.94% 0.58% 0.65% 9.29% 0.51% 13.83% Gift Contributions for 37.80% 2.99% % 54.94% 3.65% 15.76% 25.92% 14.49% 9.19% 15.89% Net Investment Income N/A N/A N/A N/A % 71.96% 50.35% 20.38% 76.34% 99.41% Overhead on 0.24% 6.22% 10.12% 47.55% 9.52% 4.59% 8.58% 5.29% 3.64% 6.54% Designated Activities 7.12% 16.61% 13.48% N/A N/A N/A N/A N/A N/A N/A 1.84% 12.59% 12.21% 6.07% 19.56% 11.06% 13.12% 3.99% 15.25% 10.03% % CHANGE IN EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY % 8.50% 9.07% 17.02% 9.00% 0.73% 8.36% 8.89% 7.33% 6.10% Equip. All 2.08% 10.76% 13.47% 14.19% 1.88% 5.64% 11.41% 8.53% 5.47% 9.89% Depreciation & Amortization N/A N/A N/A N/A 7.93% 7.87% 30.56% 9.41% 19.41% 5.41% Interest Expense on Cap. Asset Financing N/A N/A N/A N/A % 9.04% 2.72% 23.60% 1.99% % Capital Projects & Debt Service 18.41% 14.24% 8.96% N/A N/A N/A N/A N/A N/A N/A 5.11% 9.64% 10.38% 12.31% 6.76% 2.57% 10.53% 8.79% 7.54% 7.16%

33 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH ,200 Tuition and Fees 2,500 1, ,024 2,000 1,500 1, ,022 1,409 1,520 1,639 1,678 1,858 1,926 2, Sales & Services of Educational Activities 4,000 Health Care 3,776 3, ,500 3,000 2,500 2,000 1,500 1,614 1,792 1,998 2,113 2,325 2,590 3,075 3, ,

34 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH ,000 1,800 1,600 1,255 1,400 1,361 1,374 1,623 1,593 1,585 1,565 1,747 1,772 1, Gift Contributions for ,200 1, ,500 Net Investment Income 3,261 3,462 Overhead on ,000 2,500 2,000 1,598 1,787 2, ,500 1, (500) (513) (232) 50 (1,000) 600 Designated Activities

35 UNIVERSITY OF TEXAS SYSTEM SUMMARY OF ACTUAL EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH ,000 6,000 5,360 5,797 6,147 6,646 1,200 1,000 Equip. Hospitals & Clinics 1, ,066 1,121 5,000 4,000 3,136 3,395 3,645 4,336 4,693 4, ,000 2, , ,000 Equip. All 700 Depreciation & Amortization ,500 2, ,000 1,500 1,047 1,118 1,276 1,512 1,494 1,603 1,730 1,843 1, , Interest Expense on Cap. Asset Financing Capital Projects & Debt Service

36 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2008 $7.0 Billion in Revenue 56.91% 60% 50% 40% 30% 20% 17.59% 14.90% 10% 1.18% 1.16% 1.15% 3.19% 0.57% 3.32% 0% 10% $7.0 Billion in Expenses Equip. Hospitals & Clinics 16.61% 62.95% Equip. All 14.50% Interest Expense on Cap. Asset Financing 0.00% Depreciation & Amortization 5.94%

37

38 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2006 $6.5 Billion in Revenue Tuition and Fees 1.03% Overhead on Sponsored Programs 3.39% Sponsored Programs 17.01% Sales & Services of Educational Activities 1.24% Net Investment Income 5.83% Health Care 52.15% Gift Contributions for 2.17% 14.52% 1.48% 1.18% $6.1 Billion in Expenses Equip. Hospitals & Clinics 17.43% 62.90% Equip. All 13.95% Interest Expense on Cap. Asset Financing 0.00% Depreciation & Amortization 5.71%

39 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2005 $6.0 Billion in Revenue Tuition and Fees 1.02% Overhead on Sponsored Programs 3.46% Sponsored Programs 16.97% Sales & Services of Educational Activities 1.30% Net Investment Income 6.86% Health Care 51.30% Gift Contributions for 2.76% 13.74% 1.46% 1.15% $5.6 Billion in Expenses Equip. Hospitals & Clinics 17.17% 63.27% Equip. All 14.45% Interest Expense on Cap. Asset Financing 0.00% Depreciation & Amortization 5.10%

40 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2004 $5.4 Billion in Revenue Tuition and Fees 0.91% Overhead on Sponsored Programs 3.65% Sponsored Programs 18.30% Sales & Services of Educational Activities 1.61% Net Investment Income 5.92% Health Care 48.29% Gift Contributions for 1.90% 15.82% 2.62% 0.98% $5.0 Billion in Expenses Equip. Hospitals & Clinics 15.64% 64.86% Equip. All 14.95% Interest Expense on Cap. Asset Financing 0 00% Depreciation & Amortization 4.54%

41 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2003 $4.9 Billion in Revenue Tuition and Fees 0.96% Overhead on Sponsored Programs 3.70% Sponsored Programs 19.00% Sales & Services of Educational Activities 0.97% Net Investment Income 4.25% Health Care 47.80% Gift Contributions for 2.04% 17.65% 2.56% 1.06% $4.7 Billion in Expenses Equip. Hospitals & Clinics 15.70% 64.52% Depreciation & Amortization 4.23% Equip. All 15.54%

42 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2002 $4.3 Billion in Revenue 60% 50% 48.64% 40% 30% 20% 19.50% 20.28% 10% 1.69% 1.17% 3.44% 2.29% 3.73% 0% 1.70% 10% Sponsored Programs Sales & Services of Educational Activities Health Care Auxiliary Enterprises General Revenue Gift Contributions for Net Investment Income Overhead on Sponsored Programs $4.5 Billion in Expenses 63.33% Equip. Hospitals & Clinics 15.67% Depreciation & Amortization 3.88% Equip. All 17.13%

43 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2001 $4.1 Billion in Revenue Designated Activities 9.70% Tuition and Fees 0.97% Sponsored Programs 14.75% Overhead on Sponsored Programs 2.98% Gift Contributions for 2.16% Health Care 48.92% 18.19% 0.97% 1.37% $3.9 Billion in Expenditures 60.19% Equip. Hospitals & Clinics 20.12% Capital Projects & Debt Service 3.81% Equip. All 15.88%

44 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 2000 $3.8 Billion in Revenue Designated Activities 9.87% Overhead on Sponsored Programs 2.92% Gift Contributions for 2.01% Tuition and Fees 0.96% Sponsored Programs 13.70% 19.63% 2.01% 1.24% Health Care 47.66% $3.6 Billion in Expenditures 61.48% Equip. Hospitals & Clinics 19.84% Capital Projects & Debt Service 3.63% Equip. All 15.04%

45 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS FY 1999 $3.3 Billion in Revenue Designated Activities 7.03% Overhead on Sponsored Programs 2.93% Tuition and Fees 1.10% Sponsored Programs 14.47% Gift Contributions for 2.09% 21.38% 1.01% 1.18% Health Care 48.82% $3.3 Billion in Expenditures 61.43% Equip. Hospitals & Clinics 17.76% Capital Projects & Debt Service 5.01% Equip. All 15.80%

46 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS SUMMARY OF ACTUAL REVENUE AND EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH 2008 REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees $ 36,250,061 36,276,733 39,623,255 41,498,881 46,788,010 48,800,518 60,970,444 66,730,190 75,164,612 82,853, ,365, ,129, ,222, ,286, ,367, ,638,682 1,017,086,037 1,098,299,279 1,159,616,988 1,235,763,324 Sales & Services of Educational Activities 73,471,374 47,325,777 86,249,511 77,625,394 79,911,408 88,430,610 83,020,149 Health Care 1,613,737,086 1,792,133,846 1,997,547,594 2,113,497,392 2,325,104,781 2,590,472,141 3,074,917,686 3,368,160,973 3,775,970,733 3,999,306,027 39,066,024 46,595,473 56,113,357 50,766,222 51,735,593 52,523,926 68,942,004 76,367,258 80,203,049 81,339,682 33,501,239 75,750,045 39,512, ,600, ,532, ,621,404 87,324,872 95,600,390 76,649,664 80,622, ,840, ,070, ,528, ,041, ,324, ,765, ,491, ,561, ,774,224 1,047,079,771 Gift Contributions for 68,972,700 75,695,070 88,097,179 99,537,430 99,215, ,959, ,691, ,275, ,356, ,968,849 Net Investment Income (73,923,344) 206,836, ,358, ,008, ,419, ,516,702 (40,341,334) Overhead on 96,757, ,749, ,563, ,178, ,102, ,020, ,123, ,062, ,575, ,287,722 Designated Activities 232,273, ,097, ,906,294 $ 3,305,764,993 3,760,498,394 4,083,114,995 4,344,955,615 4,864,333,568 5,364,410,128 5,994,180,858 6,458,387,892 7,212,259,374 7,026,900,839 EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $ 2,053,954,624 2,220,698,043 2,364,687,791 2,820,656,233 3,034,907,696 3,253,196,291 3,558,582,942 3,836,061,666 4,032,176,722 4,400,292,782 Equip. Hospitals & Clinics 593,884, ,577, ,461, ,703, ,483, ,324, ,779,881 1,063,006,354 1,095,223,167 1,161,384,071 Equip. All 528,132, ,324, ,903, ,772, ,140, ,017, ,870, ,980, ,621,735 1,013,427,297 Depreciation & Amortization 172,709, ,935, ,776, ,067, ,346, ,871, ,586,048 Interest Expense on Cap. Asset Financing 72,922 42,680 Capital Projects & Debt Service 167,545, ,289, ,481,214 $ 3,343,517, ,611,889,745 3,928,534, ,453,842, ,703,468, ,015,387,465 5,624,343, ,098,394, ,409,893,199 6,990,690, % CHANGE IN REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Tuition and Fees 4.89% 0.07% 9.22% 4.73% 12.75% 4.30% 24.94% 9.45% 12.64% 10.23% 7.98% 7.69% 16.91% 40.69% 9.10% 6.20% 3.61% 7.98% 5.58% 6.57% Sales & Services of Educational Activities N/A N/A N/A N/A 35.59% 82.25% 10.00% 2.94% 10.66% 6.12% Health Care 7.30% 11.05% 11.46% 5.80% 10.01% 11.41% 18.70% 9.54% 12.11% 5.91% 2.39% 19.27% 20.43% 9.53% 1.91% 1.52% 31.26% 10.77% 5.02% 1.42% 33.15% % 47.84% % 16.76% 12.92% 37.90% 9.48% 19.82% 5.18% 0.46% 4.42% 0.60% 18.65% 2.58% 1.11% 2.98% 13.85% 2.80% 8.64% Gift Contributions for 0.23% 9.75% 16.38% 12.99% 0.32% 2.77% 62.51% 15.34% 13.60% 40.55% Net Investment Income N/A N/A N/A N/A % 53.43% 29.51% 8.42% 62.19% % Overhead on 7.05% 13.43% 10.77% 33.41% 11.05% 8.84% 5.66% 5.76% 1.60% 4.81% Designated Activities 7.04% 59.77% 6.69% N/A N/A N/A N/A N/A N/A N/A 4.90% 13.76% 8.58% 6.41% 11.95% 10.28% 11.74% 7.74% 11.67% 2.57% % CHANGE IN EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY % 8.12% 6.48% 19.28% 7.60% 7.19% 9.39% 7.80% 5.11% 9.13% Equip. Hospitals & Clinics 15.91% 20.66% 10.31% 11.73% 5.84% 6.21% 23.14% 10.07% 3.03% 6.04% Equip. All 9.25% 2.88% 14.83% 22.26% 4.15% 2.58% 8.38% 4.69% 6.42% 11.90% Depreciation & Amortization N/A N/A N/A N/A 15.19% 14.50% 26.03% 21.35% 8.19% 10.27% Interest Expense on Cap. Asset Financing N/A N/A N/A N/A N/A N/A 41.47% % N/A N/A Capital Projects & Debt Service 33.99% 21.64% 13.86% N/A N/A N/A N/A N/A N/A N/A 8.52% 8.03% 8.77% 13.37% 5.60% 6.63% 12.14% 8.43% 5.11% 9.06%

47 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH Tuition and Fees ,400 1,200 1, , ,017 1,160 1, Sales & Services of Educational Activities ,000 3,500 Health Care 3,075 3,368 3,776 3, ,000 2,500 2,000 1,614 1,792 2,113 1,998 2,325 2, , ,

48 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS SUMMARY OF ACTUAL REVENUE TRENDS FISCAL YEAR 1999 THROUGH 2008 Gift Contributions for 1,200 1, , Net Investment Income Overhead on (74) (40) 50 (100) 400 Designated Activities

49 UNIVERSITY OF TEXAS HEALTH INSTITUTIONS SUMMARY OF ACTUAL EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH ,500 4,000 3,500 3,000 2,500 2,000 2,054 2,221 3,253 3,035 2,821 2,365 3,836 3,559 4,032 4,400 1,200 1, Equip. Hospitals & Clinics ,095 1,063 1,161 1, , Equip. All Depreciation & Amortization 1, , , Interest Expense on Cap. Asset Financing In Thousands Capital Projects & Debt Service

50 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2008 ($526.3) Million in Revenue 20% 0% 4.32% 3.40% 0.26% 1.41% 0.20% % 20% 40% 60% 80% 100% 120% Sponsored Programs Sales & Services of Educational Activities Gift Contributions for Net Investment Income $666.0 Million in Expenses Equip. All 69.42% 5.32% Interest Expense on Cap. Asset Financing 24.31% Depreciation & Amortization 0.95%

51

52 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2006 $1.9 Billion in Revenue Net Investment Income 97.47% 0.95% Gift Contributions for 0.05% Sales & Services of Educational Activities 0.49% 0.69% 0.32% $256.0 Million in Expenses 12.54% Equip. All 16.82% Depreciation & Amortization 2.08% Interest Expense on Cap. Asset Financing 68.56%

53 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2005 $3.0 Billion in Revenue Net Investment Income 98.43% 0.35% Gift Contributions for 0.03% Sales & Services of Educational Activities 0.46% 0.51% 0.20% $197.1 Million in Expenses Equip. All 19.02% Depreciation & Amortization 2.02% 14.83% Interest Expense on Cap. Asset Financing 64.14%

54 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2004 $1.5 Billion in Revenue Net Investment Income 95.01% 0.54% Gift Contributions for 0.07% 0.39% Sales & Services of Educational Activities 0.31% 3.67% $194.0 Million in Expenses 12.59% Equip. All 40.75% Depreciation & Amortization 0.83% Interest Expense on Cap. Asset Financing 45.82% The $1.4 billion of excess revenues over expenses are primarily comprised of reinvested earnings of the Permanent University Fund and other endowment funds. In the future, these reinvested funds will be used to make distributions to the Available University Fund and to the institutions.

55 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2003 $1.5 Billion in Revenue Net Investment Income 93.71% 0.12% Gift Contributions for 0.08% Sales & Services of Educational Activities 0.41% 5.13% 0.55% $194.0 Million in Expenses 15.27% Equip. All 28.51% Depreciation & Amortization 0.95% Interest Expense on Cap. Asset Financing 55.27% The $1.4 billion of excess revenues over expenses are primarily comprised of reinvested earnings of the Permanent University Fund and other endowment funds. In the future, these reinvested funds will be used to make distributions to the Available University Fund and to the institutions.

56 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2002 ($617.7) Million in Revenue 20% 7.03% 0.65% 0.40% 0% 1.37% 0.07% 20% 40% 60% 80% 100% 120% Sales & Services of Educational Activities Gift Contributions for % Net Investment Income $142.4 Million in Expenses Equip. All 21.33% Depreciation & Amortization 1.11% 14.41% Interest Expense on Cap. Asset Financing 63.15%

57 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2001 $18.0 Million in Revenue Designated Activities 44.19% Gift Contributions for 4.43% 51.37% $34.1 Million in Expenditures 60% 52.93% 50.22% 50% 40% 30% 20% 10% 3.15% 0% 10% Equip. All Capital Projects & Debt Service

58 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 2000 $74.2 Million in Revenue Designated Activities 93.41% 5.42% Gift Contributions for 1.17% $43.2 Million in Expenditures 40.17% Equip. All 50.09% Capital Projects & Debt Service 9.74%

59 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION FY 1999 $54.6 Million in Revenue Designated Activities 92.45% 5.88% Gift Contributions for 1.68% $34.0 Million in Expenditures Equip. All 42.35% 54.02% Capital Projects & Debt Service 3.63%

60 UNIVERSITY OF TEXAS SYSTEM ADMINISTRATION SUMMARY OF ACTUAL REVENUE AND EXPENDITURE/EXPENSE TRENDS FISCAL YEAR 1999 THROUGH 2008 REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $ 4,000,000 1,812,000 8,321,512 10,287,876 18,174,453 13,027,006 22,761,025 Sales & Services of Educational Activities 2,459,036 6,114,654 4,728,244 13,579,656 9,402,489 28,134,264 17,917,696 43,404,872 77,456,167 56,869,955 15,201,593 13,096,601 55,755,465 (1,391,417) 3,210,072 4,025,173 9,266,883 8,464,162 8,288,165 6,057,411 6,071,989 6,156, ,190 7,437,221 Gift Contributions for 915, , , ,088 1,160,003 1,141, , ,514 1,075,135 1,036,355 Net Investment Income (676,426,518) 1,413,608,465 1,470,567,775 2,920,363,476 1,859,433,931 2,821,106,280 (574,796,406) Overhead on 134, , , , ,640 Designated Activities 50,502,865 69,333,421 7,971,381 $ 54,628,400 74,228,471 18,038,009 (617,653,360) 1,508,439,454 1,547,820,278 2,966,961,087 1,907,713,621 2,920,506,874 (526,330,885) EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 $ 18,362,266 17,351,327 18,037,725 20,512,286 24,180,159 24,434,081 29,226,983 32,101,666 32,616,265 35,459,672 Equip. All 14,393,398 21,636,097 17,114,615 30,369,655 45,146,064 79,060,196 37,483,655 43,072,168 33,796, ,356,437 Depreciation & Amortization 1,587,391 1,500,349 1,607,386 3,972,908 5,316,845 5,355,076 6,321,367 Interest Expense on Cap. Asset Financing 89,918,208 87,527,873 88,898, ,439, ,514, ,809, ,890,636 Capital Projects & Debt Service 1,234,804 4,208,497 (1,074,348) $ 33,990,468 43,195,921 34,077, ,387, ,354, ,000, ,123, ,005, ,576, ,028,113 % CHANGE IN REVENUES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 N/A N/A N/A N/A 54.70% % 23.63% 76.66% 28.32% 74.72% Sales & Services of Educational Activities N/A N/A N/A N/A % 22.67% % 30.76% % 36.31% N/A N/A N/A N/A 78.45% 26.58% 73.27% 13.85% % % % 25.39% % 8.66% 2.08% 26.91% 0.24% 1.38% 86.74% % Gift Contributions for 2.91% 4.98% 8.06% 44.35% % 1.61% 27.32% 5.91% 22.38% 3.61% Net Investment Income N/A N/A N/A N/A % 4.03% 98.59% 36.33% 51.72% % Overhead on N/A N/A N/A N/A N/A N/A % 8.84% 3.67% 18.92% Designated Activities % 37.29% 88.50% N/A N/A N/A N/A N/A N/A N/A % 35.88% 75.70% % % 2.61% 91.69% 35.70% 53.09% % % CHANGE IN EXPENDITURES/EXPENSES FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY % 5.51% 3.96% 13.72% 17.88% 1.05% 19.62% 9.84% 1.60% 8.72% Equip. All 35.34% 50.32% 20.90% 77.45% 48.66% 75.12% 52.59% 14.91% 21.54% % Depreciation & Amortization N/A N/A N/A N/A 5.48% 7.13% % 33.83% 0.72% 18.04% Interest Expense on Cap. Asset Financing N/A N/A N/A N/A 2.66% 1.57% 42.23% 38.81% 6.67% 1.17% Capital Projects & Debt Service 10.90% % % N/A N/A N/A N/A N/A N/A N/A 16.88% 27.08% 21.11% % 11.21% 22.51% 1.61% 29.87% 7.98% %