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California State University, Stanislaus Auxiliary and Business Services

Financial Statements

(With Supplementary Information) and Independent Auditor’s Report

June 30, 2017 and 2016


Index

1

Page

Independent Auditor’s Report 2

Financial Statements

Statements of Financial Position 4

Statements of Activities 5

Statements of Functional Expenses 6

Statements of Cash Flows 8

Notes to Financial Statements 9

Supplementary Information

Schedule of Net Position 23

Schedule of Revenues, Expenses and Changes in Net Position 24

Other Information 25

2

Independent Auditor’s Report

The Board of Directors California State University, Stanislaus Auxiliary and Business Services

Report on the Financial Statements

We have audited the accompanying financial statements of California State University, Stanislaus Auxiliary and Business Services (a California State University Auxiliary Organization), which comprise the statement of financial position as of June 30, 2017, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the 2017 financial statements referred to above present fairly, in all material respects, the financial position of California State University, Stanislaus Auxiliary and Business Services as of June 30, 2017, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

3

Prior Period Financial Statements

The financial statements of California State University, Stanislaus Auxiliary and Business Services as of and for the year ended June 30, 2016 were audited by other auditors, whose report dated September 15, 2016 expressed an unmodified opinion on those statements.

Report on Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the 2017 financial statements as a whole. The supplementary information included on pages 23 to 33 is presented for purposes of additional analysis and is not a required part of the 2017 financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2017 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2017 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the 2017 financial statements or to the 2017 financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the 2017 financial statements as a whole.

Los Angeles, California September 14, 2017


Statements of Financial Position

June 30, 2017 and 2016

See Notes to Financial Statements.

4

2017 2016

Current assets

Cash and cash equivalents 942,191$ 940,945$

Accounts receivable 67,313 67,546

Interest receivable 6,532 6,399

Due from related parties 10 1,484

Prepaid expenses 1,230 500

Total current assets 1,017,276 1,016,874

Investments 1,089,458 1,018,690

Property and equipment, net 6,901,787 7,291,543

Total 9,008,521$ 9,327,107$

Current liabilities

Accounts payable 876$ 4,700$

Interest payable 45,583 49,662

Due to related parties 18,677 17,578

Warrior card 54,846 54,931

Current portion of capital lease 115,000 105,000

Current portion of bond payable 275,000 260,000

Current portion of bond premium 20,584 5,907

Total current liabilities 530,566 497,778

Post-retirement benefit obligation 155,162 174,972

Pension obligation 1,041,100 848,421

Capital lease, net of current portion 3,805,000 3,920,000

Bond payable, net of current portion 1,561,230 1,832,966

Bond premium, net of current portion 87,137 107,721

Total liabilities 7,180,195 7,381,858

Commitments and contingencies - -

Net assets

Unrestricted - board designated 1,828,326 1,945,249

Total liabilities and net assets 9,008,521$ 9,327,107$

Assets

Liabilities and Net Assets


Statements of Activities

Years Ended June 30, 2017 and 2016


5

2017 2016

Operating revenues and support

Commissions 567,154$ 557,954$

Rental income 650,000 650,000

Other 102,615 103,011

Total operating revenues and support 1,319,769 1,310,965

Operating expenses

Program services

Bookstore 499,332 550,981

Campus dining 228,057 225,797

Residential life village 344,031 351,437

Vending 11,062 10,682

Warrior card 24,565 37,283

Investment 5,683 5,592

Club colors 1,840 1,781

Total program services 1,114,570 1,183,553

General and administrative 122,824 150,953

Total operating expenses 1,237,394 1,334,506

Change in net assets from operating activities 82,375 (23,541)

Nonoperating (expense) revenue

Investment return, net 30,873 17,371

Insurance rebate 3,845 2,121

Loss on disposal of property and equipment (3,295) -

Pension related (charges) credits other than net periodic

pension cost (230,721) 258,184

Net nonoperating (expense) revenue (199,298) 277,676

Change in net assets (116,923) 254,135

Net assets, beginning 1,945,249 1,691,114

Net assets, end 1,828,326$ 1,945,249$


Statements of Functional Expenses

Year Ended June 30, 2017


6

Campus Residential Warrior General and

Bookstore dining life village Vending card Investment Club colors administrative Total

Accounting and legal 88,408$ 62,406$ 86,675$ 10,401$ 8,668$ 1,733$ 1,734$ 87,192$ 347,217$

Awards, gifts and donations 11,656 - - - - - - - 11,656

Bank charges - - - - 4,220 - - 2,303 6,523

Benefits - - - - - - - 8,670 8,670

Board functions - - - - - - - 11 11

Depreciation 172,868 65,908 156,511 - 319 - - - 395,606

Insurance 4,719 6,806 10,279 637 530 106 106 5,306 28,489

Interest 188,448 - 90,566 - - - - - 279,014

Membership and dues - - - - 568 - - 500 1,068

Outside services - 54,729 - - 8,974 - - 781 64,484

Overhead, Chancellor's office - - - - - - - 5,661 5,661

Postage and freight - - - - - - - 2,651 2,651

Professional development - - - - - - - 495 495

Repairs and maintenance 7,111 37,072 - 24 51 - - 537 44,795

State pro rata charges - - - - - - - 2,260 2,260

Supplies 266 1,136 - - 1,149 - - 1,891 4,442

Taxes and licenses - - - - - 3,844 - 160 4,004

Travel - - - - 86 - - 4,046 4,132

Utilities 25,856 - - - - - - 360 26,216

Total 499,332$ 228,057$ 344,031$ 11,062$ 24,565$ 5,683$ 1,840$ 122,824$ 1,237,394$

Program services


Statements of Functional Expenses



7

Campus Residential Warrior General and

Bookstore dining life village Vending card Investment Club colors administrative Total

Accounting and legal 86,787$ 61,262$ 85,086$ 10,210$ 8,509$ 1,702$ 1,702$ 85,711$ 340,969$

Awards, gifts and donations 32,000 - - - - - - - 32,000

Bank charges - - - - 5,103 - - 2,584 7,687

Benefits - - - - - - - 39,904 39,904

Depreciation 173,746 71,118 156,510 - 1,275 - - - 402,649

Insurance 8,178 7,951 9,706 472 394 79 79 3,936 30,795

Interest 218,830 - 95,448 - - - - - 314,278

Membership and dues - - - - - - - 500 500

Minor equipment - - - - 9,733 - - 303 10,036

Outside services 3,105 45,001 - - 7,476 - - - 55,582

Overhead, Chancellor's office - - - - - - - 9,303 9,303

Postage and freight - - - - - - - 116 116

Repairs and maintenance 6,980 40,465 4,687 - - - - - 52,132

State pro rata charges - - - - - - - 4,038 4,038

Supplies - - - - 4,682 - - 2,062 6,744

Taxes and licenses - - - - - 3,811 - 160 3,971

Travel 31 - - - 111 - - 1,976 2,118

Utilities 21,324 - - - - - - 360 21,684

Total 550,981$ 225,797$ 351,437$ 10,682$ 37,283$ 5,592$ 1,781$ 150,953$ 1,334,506$

Program services


Statements of Cash Flows

Years Ended June 30, 2017 and 2016


8

2017 2016

Cash flows from operating activities

Change in net assets (116,923)$ 254,135$

Adjustments to reconcile change in net assets to net cash

provided by operating activities

Depreciation 395,606 402,650

Amortization of bond issuance cost 3,264 3,264

Amortization of bond premium (5,907) (11,609)

Loss on disposal of property and equipment 3,295 -

Net realized and unrealized (gains) losses on investments 5,800 14,786

Changes in operating assets and liabilities

Accounts receivable 233 5,164

Interest receivable (133) (774)

Due from related parties 1,474 1,339

Prepaid and other assets (730) -

Accounts payable (3,824) (2,331)

Interest payable (4,079) (7,962)

Due to related parties 1,099 14,143

Warrior card (85) 11,671

Post-retirement benefit obligation (19,810) 31,178

Pension obligation 192,679 (88,693)

Net cash provided by operating activities 451,959 626,961

Cash flows from investing activities

Purchases of property and equipment (9,145) (5,792)

Proceeds from sales of investments 123,867 340,668

Purchases of investments (200,435) (329,928)

Net cash provided by (used in) investing activities (85,713) 4,948

Cash flows from financing activities

Principal payments on capital lease (105,000) (310,562)

Principal payments on bond payable (260,000) (250,000)

Net cash used in financing activities (365,000) (560,562)

Net increase in cash and cash equivalents 1,246 71,347

Cash and cash equivalents, beginning 940,945 869,598

Cash and cash equivalents, end 942,191$ 940,945$

Supplemental disclosure of cash flow informationInterest paid during the year 279,829$ 330,584$


Notes to Financial Statements

June 30, 2017 and 2016

9

Note 1 - Organization and summary of significant accounting policies

Business activity California State University, Stanislaus Auxiliary and Business Services (the “Organization”) was incorporated in the State of California on October 3, 1960, under the name of California State University, Stanislaus Foundation. Effective July 1, 1998, the Organization changed its name to California State University, Stanislaus Auxiliary and Business Services. The Organization also authorized the use of the name California State University, Stanislaus Foundation (the “Foundation”) for a new non-profit corporation. The operations and assets of noncommercial activities were transferred to the Foundation effective that date.

The Organization was formed and operates as an auxiliary organization of California State University, Stanislaus (“CSU Stanislaus” or the “University”) which has campuses in Turlock and Stockton, California. The Organization arranges for services to students and faculty including dormitory, food service and campus bookstore. The bookstore and food services are provided by way of lease agreements with independent commercial vendors.

Basis of accounting The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Financial statement presentation To ensure the observance of certain constraints and restrictions placed on the use of resources, the accounts of the Organization are maintained in accordance with the principles of net asset accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into net asset classes that are in accordance with specified activities or objectives. Accordingly, all financial transactions have been recorded and reported by net asset class as follows:

Unrestricted - These generally result from revenues generated by receiving unrestricted contributions, providing services, and receiving income from investments less expenses incurred in providing program related services, raising contributions and performing administrative functions.

Temporarily restricted - The Organization reports gifts of cash and other assets as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from purpose or time restriction. At June 30, 2017 and 2016, the Organization does not have any temporarily restricted net assets.

Permanently restricted – These net assets are from donors who stipulate that resources are to be maintained permanently, but permit the Organization to expend all of the income (or other economic benefits) derived from the donated assets. At June 30, 2017 and 2016, the Organization does not have any permanently restricted net assets.

Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with an initial maturity at date of purchase of three months or less.



June 30, 2017 and 2016

10

Accounts receivable Accounts receivable are stated at unpaid balances less an allowance for doubtful accounts. The Organization provides for losses on receivables using the allowance method, which is based on experience and other circumstances. The Organization considers all accounts receivable to be fully collectible and, as such, an allowance for doubtful accounts is not considered.

Investments Investments are reported at their fair values in the statement of financial position. Realized and unrealized gains and losses are included in the statement of activities as investment return.

Property and equipment Property and equipment are stated at cost less accumulated depreciation and amortization. The Organization capitalizes all expenditures for property and equipment in excess of $5,000. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which range from 5 to 40 years. Leasehold improvements are stated at cost and are amortized using the straight-line method over the estimated useful lives of 3 to 20 years. Repairs and maintenance are changed to expenses as incurred.

Debt issuance costs Debt issuance costs, net of accumulated amortization, are reported as a direct deduction from the face amount of the bond payable to which such costs relate. Amortization of debt issuance costs is reported as a component of interest expense and is computed using an imputed interest rate on the related loan.

Fair value measurements The Organization values its financial assets and liabilities based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in inactive markets; or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data.

Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The carrying value of cash and cash equivalents, receivables, and payables approximates fair value as of June 30, 2017 and 2016, due to the relatively short maturities of these instruments.



June 30, 2017 and 2016

11

Revenue recognition The Organization recognizes revenues from auxiliary services when earned. Revenues from bookstore sales commissions, rents, and royalties are recognized when earned.

Functional allocation of expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Income taxes The Organization is a non-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the Revenue Taxation Code of California. Accordingly, no provision for income taxes is included in the accompanying financial statements.

The Organization has no unrecognized tax benefits at June 30, 2017 and 2016. The Organization’s federal and state income tax returns prior to fiscal years 2014 and 2013, respectively, are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.

If applicable, the Organization recognizes interest and penalties associated with tax matters as part of income tax expense and includes accrued interest and penalties with accrued expenses in the statements of financial position.

Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Change in accounting principle During the year ended June 30, 2017, the Organization adopted the provisions of Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which modifies the presentation of debt issuance costs and the related amortization. The change in accounting under ASU 2015-03 improves the reporting of debt issuance costs by no longer reporting them as assets. It also improves the reporting of the related amortization by including it as a component of interest expense. ASU 2015-03 has been adopted by the Organization on a retrospective basis. As a result, total assets as well as bond payable for the year ended June 30, 2016 have been reduced by the effect of the reclassification of debt issuance costs, net of accumulated amortization, of $22,034.

Reclassifications Certain reclassifications of 2016 amounts have been made to conform with the 2017 presentation.

Subsequent events The Organization has evaluated subsequent events through September 14, 2017, which is the date the financial statements were available to be issued.



June 30, 2017 and 2016

12

Note 2 - Cash and cash equivalents

The Organization maintains its cash in bank deposit accounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a limit of $250,000 per depositor. At June 30, 2017, the Organization’s deposits with financial institutions held uninsured cash of $350,053. In addition, the Organization has deposited cash in the State Treasury’s Local Agency Investment Fund (“LAIF”). Deposits in LAIF are carried at fair value as reported by LAIF and are not insured by the federal government nor the State of California. The Organization has not experienced any losses in its bank deposit accounts and believes it is not exposed to any significant credit risk on cash.

2017 2016

Deposits with financial institutions 603,475$ 529,706$

Investments in LAIF 338,716 411,239

Total cash and cash equivalents 942,191$ 940,945$

Investments in LAIF As of June 30, 2017 and 2016, there are investments in LAIF, which is a voluntary program created by statute as an alternative for California’s local governments and special districts that allows them the opportunity to participate in a major investment portfolio. It is under the administration of the California State Treasurer’s Office and is used to fund the Organization’s operating deficit. The amounts held in LAIF are considered liquid and therefore treated as a cash equivalent. Realized gains, losses and interest income are included in investment return in the statements of activities. The Organization’s investments in LAIF are measured and reported at fair value based on quoted prices for similar assets in an active market (Level 2).

Note 3 - Investments

The Organization’s investments consist of marketable securities and corporate bonds, both of which are measured and reported at fair value on a recurring basis based on quoted prices available in active markets for identical investments as of the reporting date (Level 1). The investments consist of:

2017 2016

Mutual funds

Fixed income - domestic 535,958$ 516,334$

Fixed income - international 57,429 56,600

Corporate bonds - domestic 496,071 445,756

1,089,458$ 1,018,690$



June 30, 2017 and 2016

13

Investment return is summarized as follows:

2017 2016

Realized losses (7,972)$ (15,708)$

Unrealized gains 2,172 922

Interest and dividends 36,277 31,508

Income from investment in LAIF 2,678 2,060

33,155 18,782

Portfolio management fees (2,282) (1,411)

Total 30,873$ 17,371$

Note 4 - Fair value measurements

At June 30, 2017, financial assets that are carried at fair value are classified in the table below in one of the three categories as described in Note 1:

Level 1 Level 2 Level 3 Total

Mutual funds 593,387$ -$ -$ 593,387$

Corporate bonds 496,071 - - 496,071

Total investments 1,089,458 - - 1,089,458

Cash equivalent 5,171 - - 5,171

Investment in LAIF - 338,716 - 338,716

Total 1,094,629$ 338,716$ -$ 1,433,345$

At June 30, 2016, financial assets that are carried at fair value are classified in the table below in one of the three categories as described in Note 1:

Level 1 Level 2 Level 3 Total

Mutual funds 572,934$ -$ -$ 572,934$

Corporate bonds 445,756 - - 445,756

Total investments 1,018,690 - - 1,018,690

Cash equivalent 47,677 - - 47,677 Investment in LAIF - 411,239 - 411,239

Total 1,066,367$ 411,239$ -$ 1,477,606$



June 30, 2017 and 2016

14

Financial assets valued using Level 1 inputs are based on quoted market prices within active markets and are valued on a recurring basis. Financial assets valued using Level 2 inputs are valued based on investment yields.

The Organization reviews valuations and assumptions provided by fund administrators for reasonableness and believes that the carrying amounts of these financial instruments are reasonable estimates of fair value. For the years ended June 30, 2017 and 2016, there have been no changes in the valuation methodologies.

The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Foundation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Note 5 - Property and equipment

Property and equipment consist of the following:

2017 2016

Land 287,300$ 287,300$

Buildings 5,926,828 5,926,828

Lease improvements 6,008,727 6,008,727 Equipment, furniture and fixtures 450,917 460,151

12,673,772 12,683,006 Less accumulated depreciation (5,771,985) (5,391,463)

6,901,787$ 7,291,543$

Depreciation expense for the years ended June 30, 2017 and 2016 is $395,606 and $402,649, respectively.

Note 6 - Capital lease

On October 1, 2007, the Organization entered into a 32-year lease agreement with the Board of Trustees of the California State University (the “Board”) as lessee for financing the acquisition of the bookstore from the State of California. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments as of the inception date. The California State University System (the “CSU System”) issued a Systemwide Revenue Bonds Series 2008A (“Series 2008A Bond”) in relation to the capital lease.

On May 1, 2016, the CSU System completed a partial refinance of the Series 2008A Bond connected with the bookstore capital lease by issuing the Systemwide Revenue Bonds Series 2016A (“Series 2016A Bond”). The face amount of the Series 2016A Bond refinanced was $3,810,000. In addition, $215,000 that remained outstanding from the Series 2008A Bond was applied to the Series 2016A Bond, of which $110,000 remained outstanding as of June 30, 2017.



June 30, 2017 and 2016

15

The bond bears interest at a rate varying from 2% to 5% per annum. Principal and unpaid interest will be due and payable on or before May 1 and November 1 in each year through November 1, 2038. There is a bond premium of $712,681 and bond issuance cost of $12,561, both of which are recorded by the University.

Future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2017 are as follows:

Payment Principal Interest

2018 296,250$ 115,000$ 181,250$

2019 281,900 105,000 176,900

2020 282,050 110,000 172,050

2021 281,425 115,000 166,425

2022 285,425 125,000 160,425 Thereafter 4,812,600 3,350,000 1,462,600

Total 6,239,650$ 3,920,000$ 2,319,650$

Interest expense for the years ended June 30, 2017 and 2016 was $188,448 and $218,830, respectively.

At June 30, 2017, the gross amount of the capital lease and related accumulated amortization recorded under the capital lease are as follows:

Capital lease 4,979,508$

Less accumulated amortization (1,464,123)

3,515,385$

Note 7 - Long-term debt

On April 1, 2008, the Organization entered into a loan agreement with the Board. In conjunction with the issuance of the Systemwide Revenue Bonds Series 2008A, the Organization requested $3,845,000 to refund previously issued bonds, which were used in the development and construction of the Residential Life Village II.

The loan bears interest at a rate varying from 3.5% to 5% per annum. Principal and unpaid interest will be due and payable on or before May 1 and November 1 in each year through November 1, 2022. The bonds were issued at a premium in the amount of $213,809, which is being amortized over the life of the bonds. Amortization of bond premium for the year ended June 30, 2017 and 2016 was $5,907 and $11,609, respectively. The bond issuance cost was $48,964, which is also being amortized over the life of the bonds. Amortization of bond issuance cost was $3,264 for the years ended June 30, 2017 and 2016 and is included in interest expense. Bond issuance costs, net of accumulated amortization, totaled $18,770 and $22,034, respectively, as of June 30, 2017 and 2016.



June 30, 2017 and 2016

16

Future minimum principal payments on the Organization’s bonds payable as of June 30, 2017 are as follows:

Principal Interest

2018 275,000$ 82,667$ 2019 285,000 69,500

2020 300,000 54,750

2021 315,000 39,250 2022 330,000 23,000

Thereafter 350,000 5,833

Total balance due 1,855,000 275,000

Less unamortized debt (18,770) -

Less current maturities (275,000) -

1,561,230$ 275,000$

Interest expense for the years ended June 30, 2017 and 2016 was $87,302 and $92,183, respectively.

Bond premium amortization for the years subsequent to June 30, 2017 is as follows:

2018 20,584$ 2019 24,684

2020 21,442 2021 18,924

2022 16,740

Thereafter 5,347

Total 107,721$



June 30, 2017 and 2016

17

Note 8 - Board designated net assets

Designated funds consist of funds reserved for the following items:

2017 2016

Residential life village plant 698,417$ 738,686$

Bookstore activities 267,429 275,873

Stockton auxiliary campus 257,942 257,942

Residential life village activities 178,666 182,243

Post-retirement benefits 155,162 174,972 Dining activities 116,007 127,235

General and administrative 64,793 68,430 Dining plant 11,100 50,000

Bookstore facility 57,600 50,400 Warrior cash 14,997 14,527

Vending activities 5,319 4,061

Club colors activities 894 880

1,828,326$ 1,945,249$

Note 9 - Pension plan

Plan description The Organization contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating entities within the State of California. The four auxiliary organizations at California State University, Stanislaus contribute to CalPERS through the Organization. All direct full-time Organization employees are covered by the plan. Reimbursed employees are covered by CSU Stanislaus’ plan.

Starting July 1, 2008, the Organization’s full-time employees were paid by California State University, Stanislaus. The Organization has not participated in CalPERS since 2008.

The defined benefit plan uses the Entry Age Normal Actuarial Cost Method, which is a projected benefit cost method. According to this cost method, the normal cost for an employee is the level amount that would fund the projected benefit if it were paid annually from the date of employment until retirement. The auxiliaries fund the plan based upon a percentage of qualified payrolls. CalPERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The Organization does not have any active employees and did not make any contribution to the plan during the years ended June 30, 2017 and 2016.

As of June 30, 2017 and 2016, the Organization’s pension plan was underfunded by $1,041,100 and $848,421, respectively. According to the actuarial report for the plan years ended June 30, 2017 and 2016, the total pool accrued liability was $13,889,938,645 and $13,137,020,035, respectively. Total pooled plan assets for the years ended June 30, 2017 and 2016 were $11,466,469,739 and $10,349,221,827, respectively.



June 30, 2017 and 2016

18

For the years ended June 30, 2017 and 2016, plan assets, which are allocated by CalPERS, were $3,643,795 and $3,709,356, and the total actuarial present value of accumulated plan benefits is $4,790,226 and $4,638,454. The plan was 76% and 80% funded, respectively, for the years ended June 30, 2017 and 2016. The total pension obligation for the active plans is $1,041,100 and $848,421 as of June 30, 2017 and 2016, respectively. The Organization represents less than 5% of total plan assets.

CalPERS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Headquarters Office, Lincoln Plaza North, 400 Q Street, Sacramento, California 95811. Information about benefits and contributions expected to be paid in each of the next five fiscal years and the five years thereafter has not been provided by CalPERS.

Note 10 - Post-retirement benefit plan

The Organization provides lifetime post-retirement medical coverage to employees (and their dependents) who retire at age 50 or older with at least five years of service with the Organization, the Associated Students Inc. of California State University, Stanislaus or the University Student Union of California State University, Stanislaus. The Organization pays a portion of the cost of the benefit, up to a predetermined cap. Retirees are responsible for costs in excess of the cap.

As of June 30, 2017 and 2016, the Organization had two retired employees who were eligible to participate in the plan. The two retired employees covered under this plan were originally employees of the California State University, Stanislaus Foundation. During the year ended June 30, 2009, the Organization agreed to pay for the employees’ post-retirement benefits because the Foundation had no discretionary funds to pay this obligation. No contributions were made to the plan during the years ended June 30, 2017 and 2016. The plan’s obligations and funded status for the Organization at June 30, 2017 and 2016 are as follows:



June 30, 2017 and 2016

19

Obligations and funded status at June 30 2017 2016Change in benefit obligation

Benefit obligation at beginning of year 174,972$ 143,794$

Interest cost 6,204 6,226

Actuarial (gain)/loss (17,785) 33,049

Benefits paid (8,229) (8,097)

Benefit obligation at end of year 155,162$ 174,972$

Funded status

Benefit obligation 155,162$ 174,972$

Unrecognized net actuarial gain (202,673) (194,702)

Accrued benefit cost 357,835$ 369,674$

Measurement date June 30, 2017 June 30, 2016

Unfunded status at end of year (155,162)$ (174,972)$

Amounts recognized in the statements of

financial positionPost-retirement benefit obligation 155,162$ 174,972$

Net periodic benefit cost (credit)

Interest cost 6,204$ 6,226$

Amortization of net gain (9,814) (12,551)

Net periodic benefit cost (credit) (3,610)$ (6,325)$

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing costs between the employer and plan members to that point.



June 30, 2017 and 2016

20

Actuarial methods and assumption Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members to that point. The actuarial methods and assumption used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

2017 2016

Weighted average assumptions at June 30,

Discount rate 3.84% 3.62%

Expected long-term return on plan assets N/A N/A

Rate of compensation increase N/A N/A

Medical trend

Initial health care costs trend rate 5.50% 5.80%

Ultimate health care costs trend rate 4.50% 4.50%

Year that the rate reaches the ultimate trend rate 4 years 5 years

Expected benefit payments

2018 8,430$

2019 8,861

2020 9,262

2021 9,577

2022 9,842

2023 - 2027 50,617

The Organization expects to contribute $8,430 during the next fiscal year.



June 30, 2017 and 2016

21

Note 11 - Related party transactions

The Organization enters into transactions with related parties, including:

California State University, Stanislaus (“CSU Stanislaus”) Associated Students Incorporated of California State University, Stanislaus (“ASI”) California State University, Stanislaus Foundation (“Foundation”) University Student Union of California State University, Stanislaus (“USU”)

Transactions with related parties consist of the following for the year ended June 30, 2017:

CSU

Stanislaus ASI Foundation USU Total

Due from related parties 10$ -$ -$ -$ 10$

Due to related parties (17,192) - - (1,485) (18,677)

Payments made to services,

space, and programs 1,162,981 516 - 8,442 1,171,939

Gifts to other auxiliaries - - 8,000 - 8,000

Payments received for services,

space, and programs (704,871) (3,899) (89) (15,073) (723,932)

Transactions with related parties consist of the following for the year ended June 30, 2016:

CSU

Stanislaus ASI Foundation USU Total

Due from related parties -$ 298$ -$ 1,186$ 1,484$

Due to related parties (15,724) - - (1,854) (17,578)

Payments made to services,

space, and programs 1,136,056 32,000 460 6,088 1,174,604

Payments received for services,

space, and programs (695,430) (2,126) (4,101) (10,088) (711,745)

The Organization often also makes contributions of gifts to the University. There were no gifts given during the years ended June 30, 2017 and 2016, respectively.

22

Supplementary Information


Schedule of Net Position

June 30, 2017

(For inclusion in the California State University)

See Independent Auditor’s Report.

23

Assets

Current assets:

Cash and cash equivalents 603,475$

Short-term investments 338,716

Accounts receivable, net 73,855

Capital leases receivable, current portion -

Notes receivable, current portion -

Pledges receivable, net -

Prepaid expenses and other current assets 1,230

Total current assets 1,017,276

Noncurrent assets:

Restricted cash and cash equivalents -

Accounts receivable, net -

Capital leases receivable, net of current portion -

Notes receivable, net of current portion -

Student loans receivable, net -

Pledges receivable, net -

Endowment investments -

Other long-term investments 1,089,458

Capital assets, net 6,901,787

Other assets -

Total noncurrent assets 7,991,245

Total assets 9,008,521

Deferred outflows of resources:

Unamortized loss on debt refunding(s) -

Net pension liability -

Others -

Total deferred outflows of resources -

Liabilities

Current liabilities:

Accounts payable 19,553

Accrued salaries and benefits -

Accrued compensated absences, current portion -

Unearned revenue -

Capital lease obligations, current portion 115,000

Long-term debt, current portion 275,000

Claims liability for losses and loss adjustment expenses, current portion -

Depository accounts -

Other current liabilities 100,429

Total current liabilities 509,982

Noncurrent liabilities:

Accrued compensated absences, net of current portion -

Unearned revenue -

Grants refundable -

Capital lease obligations, net of current portion 3,805,000

Long-term debt, net of current portion 1,687,721

Claims liability for losses and loss adjustment expenses, net of current portion -

Depository accounts -

Other postemployment benefits obligations 155,162

Net pension liability 1,041,100

Other liabilities -

Total noncurrent liabilities 6,688,983

Total liabilities 7,198,965$

Deferred inflows of resources:

Service concession arrangements -

Net pension liability -

Unamortized gain on debt refunding(s) -

Nonexchange transactions -

Others -

Total deferred inflows of resources -

Net position:

Net investment in capital assets 1,019,066

Restricted for:

Nonexpendable - endowments -

Expendable:

Scholarships and fellowships -

Research -

Loans -

Capital projects -

Debt service -

Others -

Unrestricted 790,490

Total net position 1,809,556$


Schedule of Revenues, Expenses, and Changes in Net Position


(For inclusion in the California State University)


24

Revenues:

Operating revenues:

Student tuition and fees, gross -$

Scholarship allowances (enter as negative) -

Student tuition and fees (net of scholarship allowances of $ 0) -

Grants and contracts, noncapital:

Federal -

State -

Local -

Nongovernmental -

Sales and services of educational activities -

Sales and services of auxiliary enterprises, gross 1,217,154

Scholarship allowances - aux ent (enter as negative) -

Sales and services of auxiliary enterprises (net of scholarship allowances of $ 0) 1,217,154

Other operating revenues 83,471

Total operating revenues 1,300,625

Expenses:

Operating expenses:

Instruction -

Research -

Public service -

Academic support -

Student services 463,274

Institutional support -

Operation and maintenance of plant 99,500

Student grants and scholarships -

Auxiliary enterprise expenses -

Depreciation and amortization 395,606

Total operating expenses 958,380

Operating income (loss) 342,245

Nonoperating revenues (expenses):

State appropriations, noncapital -

Federal financial aid grants, noncapital -

State financial aid grants, noncapital -

Local financial aid grants, noncapital -

Nongovernmental and other financial aid grants, noncapital -

Other federal nonoperating grants, noncapital -

Gifts, noncapital 19,144

Investment income (loss), net 30,873

Endowment income (loss), net -

Interest expense (275,750)

Other nonoperating revenues (expenses) - excl. interagency transfers (230,171)

Other nonoperating revenues (expenses) - interagency transfers -

Net nonoperating revenues (expenses) (455,904)

Income (loss) before other revenues (expenses) (113,659)

State appropriations, capital -

Grants and gifts, capital -

Additions (reductions) to permanent endowments -

Increase (decrease) in net position (113,659)

Net position:

Net position at beginning of year, as previously reported 1,923,215

Restatements -

Net position at beginning of year, as restated 1,923,215

Net position at end of year 1,809,556$


Other Information

June 30, 2017 (For inclusion in the California State University)


25

1 - Noncurrent restricted cash and cash equivalents at June 30, 2017:

Portion of restricted cash and cash equivalents related to endowments -$

All other restricted cash and cash equivalents -

Total restricted cash and cash equivalents -$

2.1 - Composition of investments at June 30, 2017: Current Unrestricted Current Restricted Total Current

Noncurrent

Unrestricted

Noncurrent

Restricted Total Noncurrent Total

State of California Surplus Money Investment Fund (SMIF) 338,716$ -$ 338,716$ -$ -$ -$ 338,716$

State of California Local Agency Investment Fund (LAIF) - - - - - - -

Corporate bonds - - - 496,071 - 496,071 496,071

Wachovia Short Term Fund - - - - - - -

Wachovia Medium Term Fund - - - - - - -

Wachovia Equity Fund - - - - - - -

CSU Consolidated Investment Pool (includes SWIFT and 0948 SMIF) - - - - - - -

Common Fund - Short Term Fund - - - - - - -

Common Fund - Others - - - - - - -

Debt securities - - - - - - -

Fixed income securities (Treasury notes, GNMA's) - - - - - - -

Certificates of deposit - - - - - - -

Notes receivable - - - - - - -

Mutual funds - - - 593,387 - 593,387 593,387

Money market funds - - - - - - -

Repurchase agreements - - - - - - -

Commercial paper - - - - - - -

Asset backed securities - - - - - - -

Mortgage backed securities - - - - - - -

Municipal bonds - - - - - - -

US agency securities - - - - - - -

US treasury securities - - - - - - -

Equity securities - - - - - - -

Exchange traded funds - - - - - - -

Alternative investments:

Inverse floaters - - - - - - -

Interest-only strips - - - - - - -

Agency pass-through - - - - - - -

Private equity (including limited partnerships) - - - - - - -

Alternative investments - - - - - - -

Hedge funds - - - - - - -

Managed futures - - - - - - -

Real estate investments (including REITs) - - - - - - -

Commodities - - - - - - -

Derivatives - - - - - - -

Other alternative investment types - - - - - - -

Other external investment pools:

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

Other major investments:

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

Total investments 338,716 - 338,716 1,089,458 - 1,089,458 1,428,174

Less endowment investments (enter as negative number) - - - - - - -

Total investments, net of endowments 338,716$ -$ 338,716$ 1,089,458$ -$ 1,089,458$ 1,428,174$

2.2 - Investments held by the University under contractual agreements at June 30, 2017 :

Portion of investments in note 2.1 held by the University under contractual agreements: - - - - - - -


Other Information



26

2.3 - Restricted current investments at June 30, 2017 related to:

-

-

-

-

-

-

-

-

-

-

Total restricted current investments at June 30, 2017 -$

2.4 - Restricted noncurrent investments at June 30, 2017 related to:

Endowment Investments -

-

-

-

-

-

-

-

-

-

Total restricted noncurrent investments at June 30, 2017 -$


Other Information



27

2.5 - Fair value hierarchy in investments at June 30, 2017:

Fair Value Measurements Using

Total

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant

Unobservable Inputs

(Level 3)

Net Asset Value

(NAV)

State of California Surplus Money Investment Fund (SMIF) -$ -$ -$ -$ -$

State of California Local Agency Investment Fund (LAIF) 338,716 - 338,716 - -

Corporate bonds 496,071 496,071 - - -

Wachovia Short Term Fund - - - - -

Wachovia Medium Term Fund - - - - -

Wachovia Equity Fund - - - - -

CSU Consolidated Investment Pool (includes SWIFT and 0948 SMIF) - - - - -

Common Fund - Short Term Fund - - - - -

Common Fund - Others - - - - -

Debt securities - - - - -

Fixed income securities (Treasury notes, GNMA's) - - - - -

Certificates of deposit - - - - -

Notes receivable - - - - -

Mutual funds 593,387 593,387 - - -

Money market funds - - - - -

Repurchase agreements - - - - -

Commercial paper - - - - -

Asset backed securities - - - - -

Mortgage backed securities - - - - -

Municipal bonds - - - - -

US agency securities - - - - -

US treasury securities - - - - -

Equity securities - - - - -

Exchange traded funds - - - - -

Alternative investments:

Inverse floaters - - - - -

Interest-only strips - - - - -

Agency pass-through - - - - -

Private equity (including limited partnerships) - - - - -

Alternative investments - - - - -

Hedge funds - - - - -

Managed futures - - - - -

Real estate investments (including REITs) - - - - -

Commodities - - - - -

Derivatives - - - - -

Other alternative investment types - - - - -

Other external investment pools:

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

Other major investments:

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

Total investments 1,428,174$ 1,089,458$ 338,716$ -$ -$


Other Information



28

3 - Capital assets

3.1 - Composition of capital assets at June 30, 2017:

Balance June 30,

2016

Prior Period

Adjustments Reclassifications

Balance June 30,

2016 (Restated) Additions Reductions

Transfer of completed

CWIP

Balance June 30,

2017

Non-depreciable/Non-amortizable capital assets:

Land and land improvements 287,300$ -$ -$ 287,300$ -$ -$ -$ 287,300$

Works of art and historical treasures - - - - - - - -

Construction work in progress (CWIP) - - - - - - - -

Intangible assets:

Intangible assets - - - - - - - -

Rights and easements - - - - - - - -

Patents, copyrights and trademarks - - - - - - - -

Internally generated intangible assets in progress - - - - - - - -

Licenses and permits - - - - - - - -

Other intangible assets:

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

Total intangible assets - - - - - - - -

Total non-depreciable/non-amortizable capital assets 287,300 - - 287,300 - - - 287,300

Depreciable/Amortizable capital assets:

Buildings and building improvements 5,926,828 - - 5,926,828 - - - 5,926,828

Improvements, other than buildings - - - - - - - -

Infrastructure - - - - - - - -

Leasehold improvements 6,008,727 - - 6,008,727 - - - 6,008,727

Personal property:

Equipment 389,098 71,053 - 460,151 9,144 (18,378) - 450,917

Library books and materials - - - - - - - -

Intangible assets: -


Software and websites - - - - - - - -





- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -


Total depreciable/amortizable capital assets 12,324,653 71,053 - 12,395,706 9,144 (18,378) - 12,386,472

Total capital assets 12,611,953 71,053 - 12,683,006 9,144 (18,378) - 12,673,772


Other Information



29

Less accumulated depreciation/amortization: (enter as negative number, except for reduction, enter as positive number)

Buildings and building improvements (2,931,132) - - (2,931,132) (156,511) - (3,087,643)

Improvements, other than buildings - - - - - - -

Infrastructure - - - - - - -

Leasehold improvements (2,070,242) - - (2,070,242) (218,388) - (2,288,630) Personal property:

Equipment (319,036) (71,053) - (390,089) (20,707) 15,084 (395,712)

Library books and materials - - - - - - -

Intangible assets:


Software and websites - - - - - - - -





- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -

- - - - - - - -


Total accumulated depreciation/amortization (5,320,410) (71,053) - (5,391,463) (395,606) 15,084 - (5,771,985)

Total capital assets, net 7,291,543$ -$ -$ 7,291,543$ (386,462)$ (3,294)$ -$ 6,901,787$

395,606$

-

395,606$

4 - Long-term liabilities activity schedule

Beginning Balance

Prior Period


Beginning Balance -

Restated Additions Reductions Ending Balance Current Portion Long-term Portion

Balance June 30,

2016

Prior Period


Balance June 30,

2016 (Restated) Additions Reductions Balance June 30, 2017 Current Portion Long-term Portion

Accrued compensated absences -$ -$ -$ -$ -$ -$ -$ -$ -$

Claims liability for losses and loss adjustment expenses - - - - - - - - -

Capital lease obligations:

Gross balance 4,025,000 - - 4,025,000 - (105,000) 3,920,000 115,000 3,805,000

Unamortized net premium / (discount) on capital lease obligations - - - - - - - -

Total capital lease obligations 4,025,000 - - 4,025,000 - (105,000) 3,920,000 115,000 3,805,000

Long-term debt:

Auxiliary revenue bonds - - - - - - - - -

Other bonds (non-revenue bonds) - - - - - - - - -

Commercial paper - - - - - - - - -

Notes payable related to SRB 2,115,000 - - 2,115,000 - (260,000) 1,855,000 275,000 1,580,000

Other: (list by type)

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

Total 2,115,000 - - 2,115,000 - (260,000) 1,855,000 275,000 1,580,000

Unamortized net bond premium / (discount) 113,628 - - 113,628 - (5,907) 107,721 - 107,721

Total long-term debt 2,228,628 - - 2,228,628 - (265,907) 1,962,721 275,000 1,687,721

Total long-term liabilities 6,253,628$ -$ -$ 6,253,628$ -$ (370,907)$ 5,882,721$ 390,000$ 5,492,721$

3.2 - Detail of depreciation and amortization expense for the year ended June 30, 2017:

Depreciation and amortization expense related to capital assets

Amortization expense related to other assets

Total depreciation and amortization


Other Information



30

5 - Future minimum lease payments

Year Ending June 30: Principal SRB Interest SRB

Principal and

Interest SRB Principal Only Interest Only

Principal and

Interest Other Principal Interest

Principal and

Interest

2018 115,000$ 181,250 296,250 - - - 115,000 181,250 296,250

2019 105,000 176,900 281,900 - - - 105,000 176,900 281,900

2020 110,000 172,050 282,050 - - - 110,000 172,050 282,050

2021 115,000 166,425 281,425 - - - 115,000 166,425 281,425

2022 125,000 160,425 285,425 - - - 125,000 160,425 285,425

2023 - 2027 720,000 699,500 1,419,500 - - - 720,000 699,500 1,419,500

2028 - 2032 920,000 496,000 1,416,000 - - - 920,000 496,000 1,416,000

2033 - 2037 1,170,000 245,300 1,415,300 - - - 1,170,000 245,300 1,415,300

2038 - 2042 540,000 21,800 561,800 - - - 540,000 21,800 561,800

2043 - 2047 - - - - - - - - -

2048 - 2052 - - - - - - - - -

2053 - 2057 - - - - - - - - -

2058 - 2062 - - - - - - - - -

2063 - 2067 - - - - - - - - -

Total minimum lease payments 3,920,000.00$ 2,319,650 6,239,650 - - - 3,920,000 2,319,650 6,239,650

Less: amounts representing interest (2,319,650)

Present value of future minimum lease payments 3,920,000

Unamortized net premium / (discount) on capital lease obligation -

Total capital lease obligations 3,920,000

Less: current portion (115,000)

Capital lease obligations, net of current portion 3,805,000$

6 - Long-term debt schedule

Year ended June 30: Principal Only Interest Only

Principal and

Interest Principal Only Interest Only

Principal and

Interest Principal Only Interest Only

Principal and

Interest

2018 -$ - - 275,000 82,667 357,667 275,000 82,667 357,667

2019 - - - 285,000 69,500 354,500 285,000 69,500 354,500

2020 - - - 300,000 54,750 354,750 300,000 54,750 354,750

2021 - - - 315,000 39,250 354,250 315,000 39,250 354,250

2022 - - - 330,000 23,000 353,000 330,000 23,000 353,000

2023 - 2027 - - - 350,000 5,833 355,833 350,000 5,833 355,833

2028 - 2032 - - - - - - - - -

2033 - 2037 - - - - - - - - -

2038 - 2042 - - - - - - - - -

2043 - 2047 - - - - - - - - -

2048 - 2052 - - - - - - - - -

2053 - 2057 - - - - - - - - -

2058 - 2062 - - - - - - - - -

2063 - 2067 - - - - - - - - -

Total minimum debt payments -$ - - 1,855,000 275,000 2,130,000 1,855,000 275,000 2,130,000

Less: amounts representing interest (275,000)

Present value of future minimum payments 1,855,000

Unamortized net bond premium / (discount) 107,721

Total long-term debt 1,962,721

Less: current portion (275,000)

Long-term debt, net of current portion 1,687,721$

Capital lease obligations related to SRB Total capital lease obligations

Auxiliary revenue bonds All other long-term debt Total long-term debt

All other capital lease obligations


Other Information



31

7.1 Net investment in capital assets

Capital assets, net of accumulated depreciation 6,901,787$

Capital lease obligations, current portion (115,000)

Capital lease obligations, net of current portion (3,805,000)

Long-term debt, current portion (275,000)

Long-term debt, net of current portion (1,687,721)

Portion of o/s debt that is unspent at year-end (i.e. unspent bond proceeds) (enter as positive

number) -

Unamortized loss (gain) on debt refunding -

Other adjustments: (please list)

-

-

-

-

-

-

-

-

-

-

Net position - net investment in capital assets, per SNP 1,019,066$

7.2 Restricted for nonexpendable - endowments

Portion of restricted cash and cash equivalents related to endowments -$

Endowment investments -

Other adjustments: (please list)

-

-

-

-

-

-

-

-

-

-

Net position - Restricted for nonexpendable - endowments per SNP -$

Note 8 - Transactions with Related Entities

Payments to University for salaries of University personnel working on contracts, grants, and

other programs -

Payments to University for other than salaries of University personnel 1,162,981

Payments received from University for services, space, and programs 704,871

Gifts-in-kind to the University from discretely presented component units -

Gifts (cash or assets) to the University from discretely presented component units -

Accounts (payable to) University (enter as negative number) (17,192)

Other amounts (payable to) University (enter as negative number) -

Accounts receivable from University 10

Other amounts receivable from University -

7 - Calculation of net position per Statement of Net Position (SNP)


Other Information



32

Note 9 - Other Postemployment Benefits Obligation (OPEB)

Annual required contribution (ARC) (19,810)$

Contributions during the year: (enter as negative number) -

Increase in net OPEB obligation (NOO) (19,810)

Other adjustments -

NOO - beginning of year 174,972

NOO - end of year 155,162$

Percentage of annual OPEB cost contributed during the year ended June 30, 2017 0%

10 - Pollution remediation liabilities under GASB 49: (List brief description and dollar amounts)

Descriptions: Amount

None -$

-

-

-

-

-

-

-

-

-

Total pollution remediation liabilities -

Less: current portion (enter as negative number) -

Pollution remediation liabilities, net of current portion -$


Other Information



33

Note 11 - Prior Period Adjustments

11.1 - The nature and amount of the prior period adjustment(s) recorded to beginning net position:

Net Position Class Amount

Net position as of June 30, 2016, as previously reported 1,923,215$

Transaction1 -

Transaction2 -

Transaction3 -

Transaction4 -

Transaction5 -

Transaction6 -

Transaction7 -

Transaction8 -

Transaction9 -

Transaction10 -

Net position as of June 30, 2016, as restated 1,923,215$

11.2 - Provide a detailed breakdown of the journal entries (at the financial statement line items level) booked to record each prior period adjustment as listed above:

Debit Credit

Transaction1

Net Position Classification -$ -$

- -

- -

- -

- -

- -

- -

- -

- -

Transaction2

Net Position Classification - -

- -

- -

- -

- -

- -

- -

- -

- -

Transaction3


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California State University, Stanislaus Auxiliary and ... · Auxiliary and Business Services ....

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