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STATE UNIVERSITY OF NEW YORK AT BUFFALO ANNUAL FINANCIAL STATEMENTS

FISCAL YEARS ENDED JUNE 30, 2014 and 2013

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Financial Statements ........................................................................................................................ 2 Notes to Consolidated Financial Statements .................................................................................. 5 Supplemental Schedules ................................................................................................................ 13

Table of Contents

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STATE UNIVERSITY OF NEW YORK AT BUFFALO

ASSETS, LIABILITIES AND NET ASSETS BALANCE AT JUNE 30, 2014 and 2013

Assets 2014 2013Current assets:Cash and cash equivalents (Note 6) $185,402,898 $183,473,918Accounts and notes receivable, net (Note 7) 43,828,036 49,680,305Other receivables (Note 8) 40,876,015 36,313,782Short-term investments 432,593,007 380,139,626Inventory 3,819,964 3,223,177Prepaid expenses 1,522,014 2,214,511Total current assets 708,041,934 655,045,319

Noncurrent assets:Property, plant and equipment, net (Note 11) 1,186,326,133 1,181,113,883Long-term investments 416,146,441 356,752,218Other assets (Note 12) 9,582,139 9,387,573Total noncurrent assets 1,612,054,713 1,547,253,674Total assets $2,320,096,647 $2,202,298,993

Liabilities and Net Assets

Current liabilities:Accounts payable $16,693,867 $13,486,348Accrued expenses 9,934,267 9,079,035Current portion of long-term debt 11,053,841 10,136,605Deferred revenue 363,260 830,056Other current liabilities 2,350,214 997,051Total current liabilities 40,395,449 34,529,095

Noncurrent liabilities:Long-term debt (Note 13) 190,619,116 219,921,279Other long-term liabilities 571,638,419 516,989,599Total noncurrent liabilities 762,257,535 736,910,878Total liabilities 802,652,984 771,439,973

Net assets:Unrestricted (47,290,718) (1,801,731)Restricted – non expendable 195,495,577 195,495,577Restricted – expendable 1,369,238,804 1,237,165,174Total net assets 1,517,443,663 1,430,859,020Total liabilities and net assets $2,320,096,647 $2,202,298,993

See accompanying notes to financial statements

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STATE UNIVERSITY OF NEW YORK AT BUFFALO

STATEMENT OF REVENUES, EXPENSES and CHANGES in NET ASSETS FOR THE YEARS ENDED JUNE 30, 2014 and 2013

2014 2013Operating revenues:Tuition and fees $305,780,918 $269,505,627Less: scholarship allowance (56,109,386) (49,899,582)Net tuition and fees 249,671,532 219,606,045Grants and contracts 207,672,125 206,580,506Private support and other 48,321,817 85,950,643Auxiliary enterprises 107,342,351 105,693,121Hospitals and clinical revenue 16,708,835 18,124,723Total operating revenues * 629,716,660 635,955,038

Operating expenses:Instruction 424,887,898 416,235,257Research 133,719,884 125,842,227Public service 8,504,362 9,295,190Academic support 75,651,758 75,931,044Student services 35,694,042 35,430,332Institutional support 145,585,616 138,146,543Operation and maintenance of plant 77,233,940 72,157,441Depreciation 21,065,020 26,034,335Scholarships and fellowships 21,252,012 13,585,740Hospitals and clinics 9,315,979 7,448,955Auxiliary enterprises 122,541,923 114,323,543Total operating expenses 1,075,452,434 1,034,430,607

Non-operating revenues (expenses):State appropriations * 408,501,195 493,813,387Endowment and investment income * 111,262,832 77,418,251Net realized and unrealized gains(losses) * 7,638,970 8,495,453Gifts and other non-operating revenue * 47,296,323 39,745,204Loss on disposal of plant assets (4,664,150) (693,328)Interest expense on capital related debt (37,714,753) (34,975,294)Total non-operating revenues 532,320,417 583,803,673

Increase in net assets 86,584,643 185,328,104

Net assets at the beginning of year 1,430,859,020 1,245,530,916Net assets at the end of year $1,517,443,663 $1,430,859,020

* Campus revenues totaled $1,204 million and $1,255 million for FY2014 and FY2013, respectively.

See accompanying notes to financial statements

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STATE UNIVERSITY OF NEW YORK AT BUFFALO CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2014 and 2013

2014 2013Cash flows from operating activities:

Increase (decrease) in net assets $86,584,643 $185,328,104Adjustments to reconcile increase in net assets

to net cash provided by operating activities:Amortization expense 236,135 1,444,997 Depreciation expense 27,890,089 32,717,919 Gain(loss) on sale of equipment (8,954,176) (375,559) Realized and unrealized gain (loss) on investments (101,156,205) (67,949,195) Contributions restricted for long-term purposes (16,325,271) (5,472,438) Change in value of split interest agreements (2,962,754) (4,088,108) Gain (loss) on interest rate swaps 201,447 (3,798,378) Gifts of fine art (104,100) (190,975)

Change in assets and liabilities:(Increase) decrease in:

Funds held in custody for others 1,783,101 1,223,629 Contributions receivable 1,977,677 (4,614,716) Accounts receivable, net 5,963,641 (2,166,694) Prepaid expenses 692,497 (940,287) Inventories (596,787) (58,911) Other assets (225,601) 35,178

Increase(decrease) in:Accounts payable 3,282,334 (8,369,993) Salaries payable 142,013 6,338 Vacation payable 391,026 (747,182) Sick time payable 73,055 17,817 Other liabilities 54,413,162 54,370,056 Deferred revenue (13,564) 90,828

Net cash provided by operating activities 53,292,362 176,462,430

Cash flows from investing activities:Purchase of property, plant and equipment (48,162,684) (157,213,350) Proceeds from sale of property, plant and equipment 24,001,253 547,303 Purchase of investments (213,904,322) (247,088,722) Proceeds from sale of investments 205,665,566 291,328,238

Net cash used in investing activities (32,400,187) (112,426,531)

Cash flows from financing activities:Repayment of demand note payable (19,210,437) - Proceeds from long-term debt (524,052) (812,939) Investments subject to annuity agreements 1,097,008 827,841 Payments and maturities of annuity obligations (1,349,265) (1,945,179) Collections of contributions restricted for long-term purposes 9,673,989 5,214,917 Principal payments on long-term debt (8,650,438) (42,395,601)

Net cash used in financing activities (18,963,195) (39,110,961)

Increase in cash and cash equivalents 1,928,980 24,924,938

Cash and cash equivalents at beginning of year 183,473,918 158,548,980

Cash and cash equivalents at end of year $185,402,898 $183,473,918

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STATE UNIVERSITY OF NEW YORK AT BUFFALO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Reporting Entities

The State University of New York at Buffalo (UB) is comprised of various entities/components that are closely affiliated with UB and therefore are included within the campus financial statements. Decisions on which entities/components to include were based on one or more of the following criteria: (a) is the University financially accountable for the organization, (b) does the organization receive or hold economic resources that are significant to and for the direct benefit of the University or its constituents, (c) is the University entitled to, or can otherwise access, a majority of the economic resources received or held by the organization, (d) is the organization fiscally dependent upon the University. Entities/components that meet these criteria and therefore are included in the financial statements are: • State Operating dollars from the approved New York State budget. • Income Fund Reimbursable (IFR)/State University Tuition Reimbursable Account (SUTRA) activity

which is comprised of self-supporting programs providing services for students and clients and for administering other charged tuition and fees in excess of what is needed to support the state budget. These accounts include fees for contract courses and summer sessions.

• Construction fund dollars include State and The Research Foundation for SUNY assets that are tracked in the SUNY system along with the depreciation associated with those assets. This also includes State construction in progress and capitalized interest.

• University at Buffalo Foundation (UBF) whose purpose is to support and promote the educational, research and public service mission of the University.

• The Research Foundation for SUNY (RF) is a private, nonprofit educational corporation that administers externally funded contracts and grants for and on behalf of SUNY.

• Auxiliary enterprises: Campus Dining & Shops (CDS) whose purpose is to provide, for the benefit of the

campus community, dining services, retail services, vending services, campus ID cards and catering services.

Dormitory Income Fund Reimbursable (DIFR), a self-supporting fund used to administer dormitory (residence hall) rental fees and charges.

These unaudited financial statements are prepared from information received from the entities listed above, which includes audited financial statements from UBF and CDS. The balance of the financial numbers included in this statement is unaudited. Supplemental schedules include financial information by funding entity.

2. Fiscal Years

The campus financial statements incorporate a twelve-month period for all entities. These entities operate under different fiscal periods. The following schedule provides the fiscal year end of the entities included in these financial statements:

Funding type Fiscal year end State-held funds: State Operating June 30th IFR/SUTRA June 30th Dormitory IFR June 30th State University Construction Fund March 31st University at Buffalo Foundation June 30th The Research Foundation for SUNY June 30th Campus Dining & Shops May 31st

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3. Limitation of Consolidated Campus Financial Statements

Component parts of the campus financial statements have been audited by independent public accounting firms; however, the consolidation of these statements has not. While an attempt has been made to eliminate inter-entity transactions to the extent practical, it is possible that there exists some duplication of financial information that does not materially distort the accuracy of the financial statements.

4. Use of Estimates

In preparing the financial statements certain information was not available either from the State University Construction Fund or from SUNY System Administration. This required the use of estimates in order to present the financial statements in conformity with U.S. generally accepted accounting principles. Actual results could differ from those estimates and will be reflected in next year’s financial statements.

5. Fringe Benefits

Employee fringe benefits (i.e., health insurance, worker’s compensation, retirement and post-retirement benefits) are paid by the State on behalf of UB for employees funded through State Operating accounts. Other State-held funding sources such as IFR and SUTRA along with non-State entities, as outlined in Note 1, pay their own fringe benefits costs. The fringe benefits amount for UB employees paid by State Operating funds is calculated by taking the fringe benefits rate which is determined by the State, and applying it to total eligible personal service and temporary service costs incurred. These imputed costs are included in the financial statements.

6. Cash and Cash Equivalents Cash and cash equivalents represent University at Buffalo funds held in the short-term investment pool (STIP) in the State Treasury or in local depositories by the various entities included in these statements. The following schedule summarizes cash and cash equivalents by funding source:

2014 2013State-held funds:

State Operating $993,941 ($294,634)IFR/SUTRA 62,584,797 70,601,194Dormitory IFR 11,548,431 5,527,086

The Research Foundation for SUNY 76,744,142 70,532,901University at Buffalo Foundation 23,345,793 29,757,211Campus Dining & Shops 10,185,794 7,350,160Total $185,402,898 $183,473,918

Campus Dining & Shops (CDS) has approximately $1,723,600 and $680,436 in their agency accounts for the fiscal years ended June 30, 2014 and 2013, respectively. CDS is the custodian of these funds that have been raised by various campus units that are associated with, but not controlled by, CDS. Such funds are disbursed at the instructions of the particular campus unit that controls them. The Research Foundation for SUNY (RF) has two pools of cash, unrestricted (non-sponsored) and restricted (sponsored). Unrestricted cash represents the majority of the balance and consists of facilities and administrative (indirect) cost recovery dollars that were not spent at the end of the fiscal year.

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Restricted cash is the consolidated balance of payments to the University by sponsors in excess of current expenditures for sponsored research projects. A portion of the cash falls under the Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosure. This includes deposits held by UB that are not covered by depository insurance and are (a) uncollateralized; (b) collateralized with securities held by a pledging financial institution; or (c) collateralized with securities held by a pledging financial institution’s trust department or agency. The table below summarizes the cash that falls under the GASB No. 40 disclosure rules. These are only for funds held by the State or CDS. Other agencies included in these financial statements follow Financial Accounting Standards Board rules and are not included in this analysis. Category A Category B Category C Total Cash and Cash Equivalents: $580,174 $9,315,624 $0 $9,895,798

7. Accounts and Notes Receivable

Accounts and notes receivable totaled $43,828,036 and $49,680,305 for the fiscal years ended June 30, 2014 and 2013, respectively. This was net of allowances for doubtful accounts of $12,013,926 and $11,695,810 for the fiscal years ended June 30, 2014 and 2013, respectively. Depending upon the funding source these receivables occurred for a variety of reasons. State and auxiliary enterprises receivables occur due to student billings for tuition, fees, and room and board payments. Research receivables arise from sponsored awards where the expenditures exceed the cash received whether the difference is billed to the sponsor or not billed yet. The only notes receivable are student loans awarded from the former State-held endowment fund. These notes have various interest rates and repayment terms. Certain entities carry an allowance for doubtful accounts on their balance sheet. This amount is calculated in different ways depending on the funding source. Each entity writes off balances during the year as they are deemed uncollectible which, in most cases, is based upon the aging of the receivables.

8. Other Receivables The majority of other receivables consist of contributions receivable within UBF. These contributions represent unconditional promises to give. An allowance of $250,000 for uncollectible contributions is estimated for these receivables which are summarized below:

Contributions Receivable: 2014 2013Unconditional promises expected to be collected in:Less than one year $14,837,218 $27,154,975One year to five years 23,073,316 8,033,039Greater than five years 3,437,877 1,450,734

41,348,411 36,638,748

Less:Discount present value (606,172) (570,114)Allowance for uncollectible contributions receivable (250,000) (250,000)

$40,492,239 $35,818,634

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As of June 30, 2014, UBF has also received bequest intentions and revocable trusts that management estimates will approximate $68.6 million. These intentions and conditional promises to give are not recognized as assets in the accompanying consolidated financial statements. Amounts received under these conditional promises to give will generally be restricted for specific purposes stipulated by the donors, primarily endowments for faculty support, scholarships, and general operating support of particular departments and divisions of the University. UB has committed Research Foundation (RF) funds to be used for a term loan and extension of credit to UB Associates Inc. (UBA) with the following terms: Term loan – The loan is unsecured and in the amount of $11 million. It was repaid via interest until May 2012 and then principal and interest from June 2012 through May 2017. The loan’s outstanding balance was $6.7 million as of June 30, 2014. Extension of credit – The extension of credit is unsecured and is in the amount of $2.9 million. Its outstanding balance as of June 30, 2014 was $1.76 million.

9. Endowment and Other Investments

Investments of UB are recorded at fair value with the majority of them being long-term. Investment income is reported net of investment fees. Realized and unrealized gains and losses are reflected in the Statement of Revenues, Expenses and Changes in Net Assets. CDS invests primarily in fixed income securities, which are comprised of income funds. These income funds are mutual funds, whose purpose is to provide income from investments. The composition of these investments (excluding cash) is as follows:

CDS UBF CDS UBFFixed income securities $5,742,417 $131,447,256 $3,720,488 $118,421,423Domestic equity 187,482,116 162,837,691International equity 1,158,038 185,996,051 769,046 158,808,564Alternative investments

Real assets 83,116,288 66,492,002Private equity 91,296,583 79,821,641Hedge funds 159,200,719 141,662,316

Other 2,399,857 2,474,128$6,900,455 $840,938,870 $4,489,534 $730,517,765

June 30, 2014 June 30, 2013

The Research Foundation maintains a diverse investment portfolio and with respect to debt instruments, has a policy of investing primarily in high quality securities. Investments are held with the investment custodian in the Research Foundation’s name and could not be broken out by campus for these statements. Therefore, the Research Foundation’s investment balances could not be shown in the asset section nor could the unrealized or realized gains be recorded in the Statement of Revenues and Expenses.

10. Inventory The composition of inventory depends upon the entity being examined. For the entities covered within these financial statements, inventory consists of food, beverage, store inventory, dental supplies and chemicals. Inventory is stated at lower of cost (first-in, first-out method) or market.

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11. Property, Plant and Equipment Fixed assets are either stated at historical cost if purchased or at fair market value at date of receipt if acquired by gift. Fixed assets are shown net of accumulated depreciation of $919,084,600 and $893,284,502 as of June 30, 2014 and 2013, respectively. The majority of the University depreciates its assets using the straight-line method over the assets estimated useful life. In general, the buildings and components are depreciated between 25-50 years, capital equipment, furniture, and fixtures lives range from 4 to 15 years and library acquisitions are depreciated over 10 years.

There continues to be a one year lag between the Property, Plant and Equipment amounts recorded here in these statements due to the availability of the SUNY figures for our University. SUNY’s numbers are finalized in the spring of the following year, while the numbers used for these statements are compiled in the fall, after the fiscal year closes (fiscal year 2013-14 numbers are available in March 2015, so fiscal year 2012-13 numbers are used instead).

12. Other Assets

Fine art collections are included within the other assets reported in the financial statements and are valued at $10,227,479 and $10,025,754 for the fiscal years ended June 30, 2014 and 2013, respectively. These assets make up the majority of the University’s other assets.

13. Long-term liabilities

The University at Buffalo and its affiliated entities has entered into several debt obligations to finance various capital facilities or large equipment purchases. Total long-term and short-term obligations are summarized below:

2014 2013Campus Dining & Shops (CDS)

Note payable to a bank in monthly installments of principal and interest of $53,454, based on a fixed interest rate of 2.62% through April 1, 2017. This note is secured by investments with a net book value of $5,527,214 at May 31, 2014.

$1,797,808 $2,383,005Unsecured note payable related to a related party in annual principal payments and semi-annual interest payments totaling $951,091 per year, based on a fixed interest rate of 4.81% through June 30, 2027. 9,037,209 9,529,910

University at Buffalo Foundation (UBF )

Village of Kenmore Housing Authority bonds payable in monthly installments of $47,516 through January 2028, including interest at 4.95%. (Flickinger Project)

5,605,692 5,886,825Town of Amherst Development Corporation bonds payable in annual principal installments that escalate through maturity in October 2045, plus interest ranging from 2.25% to 5.00% adjusted annually, net of discount of $37,383 in 2014 and $25,411 in 2013. (Greiner Hall and Hadley Village) 77,997,617 79,909,589Town of Amherst Development Corporation bonds payable in annual principal installments that escalate through maturity in October 2035 plus variable rate interest. Interest rates ranged from 0.09% to 0.13% and 0.08% to 0.23% for the years ended June 30, 2014 and 2013, respectively. (South Lake Village/Replacement Bonds) 22,530,000 23,035,000

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2014 2013

University at Buffalo Foundation (UBF ) continued

Town of Amherst Development Corporation bonds payable in monthly principal installments that escalate through maturity in August 2042 plus variable rate interest. Interest rates ranged from 1.50% to 1.53% for the year ended June 30, 2014 and 1.53% to 1.56% for the year ended June 30, 2013. (Flint Village and Creekside Village Refunding) 31,085,000 31,805,000Operating Line of Credit payable on demand and bearing interest at 1.5% below the bank’s prime rate, (1.75% at both June 30, 2014 and 2013). 5,789,563 25,000,000State

NYPA Phase I Chillers loan payable in monthly installments of $16,100 through maturity June 2016. Variable interest rate, 0.86% for 2013-14 and 2012-13.

369,951 560,562NYPA Phase II HVAC and outdoor lighting loan payable in monthly installments of $28,245 through maturity January 2022. Variable interest rate, 0.86% for 2013-14 and 2012-13. 2,599,757 2,933,898Dorm Rehab projects – various dormitory projects through Dormitory Authority of the State of New York (DASNY) bond or revolving loans with the Dormitory Authority. Maturity of these borrowings end in June 2031 with varying interest rates. 44,860,360 49,014,095Total debt obligations $201,672,957 $230,057,884Current portion of long-term debt (11,053,841) (10,136,605)Long-term debt $190,619,116 $219,921,279

Campus Dining and Shops has available a $1,000,000 unsecured bank line of credit, with interest at the prime rate minus 0.50%. There are no amounts outstanding at May 31, 2014 or 2013. All debt covenants were compiled for all agencies having debt. The University entered into a financial arrangement on November 5, 2013 with the State University Construction Fund (SUCF) to fund the construction of the new School of Medicine and Biomedical Sciences building in downtown Buffalo. The estimated total cost of the project is $375 million and of the $375 million budget, the University is responsible for (1) $75 million in campus funding and (2) the repayment of approximately $215 million in debt service (leveraged appropriation) at varying interest rates:

Campus funding – The $75 million budget in campus funding is based on (1) Land Acquisition - $5.75 million, acquired and paid through UB Foundation. Actual amounts total $4.6 million and were paid in fiscal year 2012-13, (2) Construction - $31 million, due to SUCF. A payment of $31 million was transferred via revenue transfer from IFR funds to SUCF on May 19 2014, and (3) Equipment - $38.25 million, to be spent by the University for FF&E installation and moving coordination costs. Actual amounts have yet to be determined. Debt service – The $215 million in debt service is derived from the issuance of Empire State Development Corporation bonds with varying interest rates. Planned disbursements for design and construction will be made based on debt issues of $107 million in fiscal year 2014-15, $76 million in fiscal year 2015-16, and $32 million in fiscal year 2016-17. Payments will be made annually and total repayment will be approximately $407.9 million. Repayments are as follows (in millions):

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Period ending March 31,

Annual Payment Amount

Total Payments

2015 $2.4 $2.42016 $8.6 8.62017 $12.5 12.52018-44 $13.9 375.32045 $7.0 7.02046 $2.1 2.1Total $407.9

14. Other Post-Employment Benefits (OPEB)

SUNY, in compliance with GASB 45, records their annual liability and expense for Other Post-Employment Benefits (OPEB) on their financial statements. These benefits, as defined by GASB 45, include “postemployment healthcare, as well as other forms of postemployment benefits (for example, life insurance) when provided separately from a pension plan.” Since GASB 45 calls for disclosure and recognition of these benefits and there is a large portion of SUNY’s OPEB costs that are unfunded by the State, the University at Buffalo’s portion of the liability for these benefits has been recorded within these financial statements. The annual amounts of the unfunded actuarial accrued liability (UAAL) are recorded in other long-term liabilities with the offset being booked to expenses. The expense amount was allocated to the functional expense classifications consistent with the fringe benefit rate applied to personal service costs. The OPEB liability amounted to $39,691,466 for 2013-14 and $55,133,725 for 2012-13. The amount attributable to the University is obtained from SUNY and is based on the University’s share of personal service costs. SUNY has been recording this liability/expense for The Research Foundation for RF (RF) as well. This has been occurring for prior years and this information has now been made available to the University and is recorded in these financial statements. The liability/expense was recorded on UB’s statements in FY 2014 to match SUNY’s numbers. This expense was allocated over the functional expense classifications based on the University’s RF payroll expense for the fiscal year. The accumulated liability for the University at Buffalo as of June 30, 2014 was $429,671,187 for the State and $14,615,791 for RF.

15. Commitments

UB and its affiliated entities committed to numerous operating leases covering real property and equipment. Rental expenditures reported for the years ended June 30, 2014 and 2013 under such operating leases were approximately $1,991,206 and $2,350,561 respectively. The following is a summary of rental commitments under non-cancelable real property and equipment leases with terms exceeding one year:

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Year ending June 30, Amount2015 $1,246,9032016 1,146,4962017 1,150,6922018 979,8542019 944,7812020-24 526,832Total $5,995,558

The above schedule does not include The Research Foundation for SUNY. Their rental payments amounted to $261,739 and $276,909 for the fiscal years ended June 30, 2014 and 2013, respectively. Any amounts paid between State and UBF have been eliminated.

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State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total

Assets

Current assets:Cash and cash equivalents $993,941 $62,584,797 $23,345,793 $76,744,142 $21,734,225 $185,402,898Accounts and notes receivable, net 18,864,974 1,765,226 2,636,907 17,227,250 3,333,679 43,828,036Other receivables 0 0 40,492,239 0 383,776 40,876,015Short-term investments 0 0 427,065,793 0 5,527,214 432,593,007Inventory 1,792,808 1,022,634 0 0 1,004,522 3,819,964Intercompany receivables 2,587,636 (46,875,351) (11,367,653) 27,630,348 28,025,020 0Prepaid expenses 1,429,442 0 0 0 92,572 1,522,014 Total current assets 25,668,801 18,497,306 482,173,079 121,601,740 60,101,008 708,041,934

Noncurrent assets:Property, plant and equipment, net 969,434,161 60,825,801 140,299,286 3,184,984 12,581,901 1,186,326,133Long-term investments 0 0 414,773,200 0 1,373,241 416,146,441Other assets 76,624 0 9,505,515 0 0 9,582,139 Total noncurrent assets 969,510,785 60,825,801 564,578,001 3,184,984 13,955,142 1,612,054,713 Total assets $995,179,586 $79,323,107 $1,046,751,080 $124,786,724 $74,056,150 $2,320,096,647

Liabilities and Net Assets

Current liabilities:Accounts payable $7,576,285 $0 $6,999,020 $0 $2,118,562 $16,693,867Accrued expenses 0 0 5,377,653 3,036,102 1,520,512 9,934,267Current portion of long-term debt 6,408,321 0 3,528,188 0 1,117,332 11,053,841Deferred revenue 0 0 50,349 0 312,911 363,260Other current liabilit ies 0 0 0 0 2,350,214 2,350,214 Total current liabilities 13,984,606 0 15,955,210 3,036,102 7,419,531 40,395,449

Noncurrent liabilities:Long-term debt 41,421,747 0 139,479,684 0 9,717,685 190,619,116Other long-term liabilit ies 506,730,516 19,299,123 30,992,989 14,615,791 0 571,638,419 Total noncurrent liabilities 548,152,263 19,299,123 170,472,673 14,615,791 9,717,685 762,257,535 Total l iabilities 562,136,869 19,299,123 186,427,883 17,651,893 17,137,216 802,652,984

Net Assets:Unrestricted (94,825,191) 0 16,109,722 (14,615,791) 46,040,542 (47,290,718)Restricted - nonexpendable 0 0 195,495,577 0 0 195,495,577Restricted - expendable 527,867,908 60,023,984 648,717,898 121,750,622 10,878,392 1,369,238,804 Total net assets 433,042,717 60,023,984 860,323,197 107,134,831 56,918,934 1,517,443,663 Total l iabilities and net assets $995,179,586 $79,323,107 $1,046,751,080 $124,786,724 $74,056,150 $2,320,096,647

State University of New York at BuffaloAssets, Liabilities and Net Assets by Entity

as of June 30, 2014

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State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total

Assets

Current assets:Cash and cash equivalents ($294,634) $70,601,194 $29,757,211 $70,532,901 $12,877,246 $183,473,918Accounts and notes receivable, net 18,791,940 1,305,119 3,463,551 22,916,486 3,203,209 49,680,305Other receivables 0 0 35,818,634 0 495,148 36,313,782Short-term investments 0 0 376,917,920 0 3,221,706 380,139,626Inventory 1,806,825 459,614 0 0 956,738 3,223,177Intercompany receivables 2,349,548 (30,369,203) (10,909,439) 15,829,271 23,099,823 0Prepaid expenses 1,163,109 0 0 0 1,051,402 2,214,511 Total current assets 23,816,788 41,996,724 435,047,877 109,278,658 44,905,272 655,045,319

Noncurrent assets:Property, plant and equipment, net 954,472,064 53,715,454 155,991,247 3,469,052 13,466,066 1,181,113,883Long-term investments 0 0 355,484,390 0 1,267,828 356,752,218Other assets 76,624 0 9,310,949 0 0 9,387,573 Total noncurrent assets 954,548,688 53,715,454 520,786,586 3,469,052 14,733,894 1,547,253,674 Total assets $978,365,476 $95,712,178 $955,834,463 $112,747,710 $59,639,166 $2,202,298,993

Liabilities and Net Assets

Current liabilities:Accounts payable $6,214,676 $0 $6,838,432 $0 $433,240 $13,486,348Accrued expenses 0 0 5,128,515 2,664,836 1,285,684 9,079,035Current portion of long-term debt 5,677,985 0 3,380,722 0 1,077,898 10,136,605Deferred revenue 0 0 503,581 0 326,475 830,056Other current liabilit ies 0 0 0 0 997,051 997,051 Total current liabilities 11,892,661 0 15,851,250 2,664,836 4,120,348 34,529,095

Noncurrent liabilities:Long-term debt 46,830,570 0 162,255,692 0 10,835,017 219,921,279Other long-term liabilit ies 467,039,050 19,299,123 30,651,426 0 0 516,989,599 Total noncurrent liabilities 513,869,620 19,299,123 192,907,118 0 10,835,017 736,910,878 Total l iabilities 525,762,281 19,299,123 208,758,368 2,664,836 14,955,365 771,439,973

Net Assets:Unrestricted (55,133,725) 0 16,109,722 0 37,222,272 (1,801,731)Restricted - nonexpendable 0 0 195,495,577 0 0 195,495,577Restricted - expendable 507,736,920 76,413,055 535,470,796 110,082,874 7,461,529 1,237,165,174 Total net assets 452,603,195 76,413,055 747,076,095 110,082,874 44,683,801 1,430,859,020 Total l iabilities and net assets $978,365,476 $95,712,178 $955,834,463 $112,747,710 $59,639,166 $2,202,298,993

State University of New York at BuffaloAssets, Liabilities and Net Assets by Entity

as of June 30, 2013

15

State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total

Revenues:Tuition and fees, net $199,056,917 $44,060,251 $6,554,364 $0 $0 $249,671,532State appropriations 408,501,195 0 0 0 0 408,501,195Grants and contracts 49,270,174 8,881,714 0 149,520,237 0 207,672,125Private support and other 0 6,169,076 54,711,551 15,508,657 5,979,010 82,368,294Endowment and investment income 100,000 0 118,303,535 0 498,268 118,901,803Auxiliary enterprises 0 12,767,025 24,955,598 0 69,619,728 107,342,351Hospitals and clinical revenue 0 3,677,647 13,031,188 0 0 16,708,835Other 13,249,846 0 0 0 0 13,249,846 Total revenues 670,178,132 75,555,713 217,556,236 165,028,894 76,097,006 1,204,415,981

Expenses by function:Instruction 344,200,436 16,211,839 47,590,594 16,885,030 0 424,887,899Research 15,720,903 8,964,695 0 109,034,286 0 133,719,884Public service 2,380,040 954,659 0 5,169,663 0 8,504,362Academic support 69,165,578 6,391,432 0 94,748 0 75,651,758Student services 23,795,934 11,261,117 0 636,991 0 35,694,042Institutional support 69,847,781 17,052,971 24,551,055 34,133,809 0 145,585,616Operation and maintenance of plant 74,812,190 2,015,033 0 406,717 0 77,233,940Depreciation 19,016,869 0 0 541,966 1,506,185 21,065,020Scholarships and fellowships 9,486,643 3,128,145 7,574,202 1,063,022 0 21,252,012Hospitals and clinics 5,651,132 3,664,847 0 0 0 9,315,979Auxiliary enterprises 13,279,402 22,300,046 24,593,283 10,705 62,355,688 122,539,124Interest expense 37,714,753 0 0 0 0 37,714,753Other expenses 4,666,949 0 0 0 0 4,666,949 Total expenses 689,738,610 91,944,784 104,309,134 167,976,937 63,861,873 1,117,831,338

Expenses by type:Salaries 346,882,511 6,841,072 31,849,767 64,108,314 20,226,716 469,908,380Employee fringe benefits 231,739,297 11,466,599 12,041,748 37,765,641 9,128,055 302,141,340Supplies (1,288,333) 18,744,675 5,443,181 12,931,442 13,547,780 49,378,745Travel 1,645,083 5,157,022 7,310,731 3,733,511 28,224 17,874,571Contractual services 23,979,360 42,185,282 12,967,025 35,881,402 4,934,656 119,947,725Insurance and professional fees 0 0 1,198,759 469,877 509,965 2,178,601Rent, utilit ies and lease 20,577,781 0 2,433,355 606,027 1,868,866 25,486,029Depreciation 19,016,869 0 6,817,058 541,966 1,506,185 27,882,078Equipment, repairs and maintenance 9,468,490 4,569,181 296,762 7,339,252 8,823,533 30,497,218Management fees and subscriptions 0 0 3,565,244 5,017,670 0 8,582,914Interest expense 37,714,753 0 6,113,571 (27) 492,917 44,321,214Other expenses 2,799 2,980,953 14,271,933 (418,138) 2,794,976 19,632,523 Total expenses 689,738,610 91,944,784 104,309,134 167,976,937 63,861,873 1,117,831,338 Increase (decrease) net assets ($19,560,478) ($16,389,071) $113,247,102 ($2,948,043) $12,235,133 $86,584,643

State University of New York at BuffaloRevenues and Expenses by EntityFiscal Year Ended June 30, 2014

16

State UB Research Auxiliary O perations IFR/SUTRA Foundation Foundation (CDS/DIFR) Total

Revenues:Tuition and fees, net $167,956,675 $44,773,122 $6,876,248 $0 $0 $219,606,045State appropriations 493,813,387 0 0 0 0 493,813,387Grants and contracts 45,528,966 4,105,100 0 156,946,440 0 206,580,506Private support and other 11,849,400 39,299,381 48,708,638 9,033,307 5,590,822 114,481,548Endowment and investment income 100,000 0 85,304,737 0 508,968 85,913,705Auxiliary enterprises 0 13,325,032 28,086,045 0 64,282,044 105,693,121Hospitals and clinical revenue 0 3,615,369 14,509,354 0 0 18,124,723Other 11,214,298 0 0 0 0 11,214,298 Total revenues 730,462,726 105,118,004 183,485,022 165,979,747 70,381,834 1,255,427,333

Expenses by function:Instruction 307,792,644 38,826,110 51,644,980 17,971,523 0 416,235,257Research 21,950,329 10,389,526 0 93,502,372 0 125,842,227Public service 3,792,243 904,442 0 4,598,505 0 9,295,190Academic support 69,419,399 6,310,634 0 201,011 0 75,931,044Student services 17,949,673 17,013,869 0 466,790 0 35,430,332Institutional support 74,376,025 14,188,714 24,513,871 25,067,933 0 138,146,543Operation and maintenance of plant 70,687,714 915,787 0 553,940 0 72,157,441Depreciation 24,352,400 0 0 578,155 1,103,780 26,034,335Scholarships and fellowships 23,809,617 (17,122,095) 5,814,115 1,084,103 0 13,585,740Hospitals and clinics 4,491,262 2,957,693 0 0 0 7,448,955Auxiliary enterprises 13,086,407 13,466,431 23,522,232 0 64,250,865 114,325,935Interest expense 34,975,294 0 0 0 0 34,975,294Other expenses 543,411 0 0 147,525 0 690,936 Total expenses 667,226,418 87,851,111 105,495,198 144,171,857 65,354,645 1,070,099,229

Expenses by type:Salaries 337,554,534 10,788,043 32,221,261 64,323,977 19,402,461 464,290,276Employee fringe benefits 227,122,105 11,465,214 11,952,375 21,957,956 8,432,147 280,929,797Supplies (18,496,187) 36,515,301 6,487,199 13,410,141 13,865,485 51,781,939Travel 2,085,335 4,876,349 6,163,264 3,747,360 (105,325) 16,766,983Contractual services 37,318,781 15,248,654 11,386,597 29,704,402 5,710,551 99,368,985Insurance and professional fees 0 0 1,635,620 0 450,265 2,085,885Rent, utilit ies and lease 16,325,059 0 1,938,806 0 4,257,900 22,521,765Depreciation 24,352,400 0 8,118,980 578,155 1,103,780 34,153,315Equipment, repairs and maintenance 5,968,094 5,570,369 303,222 6,005,497 9,334,222 27,181,404Management fees and subscriptions 0 0 2,668,212 4,567,324 0 7,235,536Interest expense 34,975,294 0 6,531,747 0 338,969 41,846,010Other expenses 21,003 3,387,181 16,087,915 (122,955) 2,564,190 21,937,334 Total expenses 667,226,418 87,851,111 105,495,198 144,171,857 65,354,645 1,070,099,229 Increase (decrease) net assets $63,236,308 $17,266,893 $77,989,824 $21,807,890 $5,027,189 $185,328,104

State University of New York at BuffaloRevenues and Expenses by EntityFiscal Year Ended June 30, 2013

17

Prepared by Financial Services, a division of University Business Services