Financial SummaryThe <strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>., a non-profit corporation, maintains threemajor facilities at San José State University in downtown San José,The collected student fees were approximately $7.7 million at June 30,2007. The California State University Chancellor’s Office retains a portionCalifornia. These facilities are comprised of the <strong>Student</strong> <strong>Union</strong> Building,the Event Center and the Aquatic Center. The 38 year-old organization,which receives no state funding, depends on student fees collected from theprevious year and on self-generated revenues for its operations.of these fees to pay the annual bond debt of approximately $1.8 million, amandatory reserve transfer of $155,000 annually for capital projects andother administrative charges. In FY 2006–2007, $4,765,057 (62% of thecollected fees from prior year) was returned to the <strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>. forits operating budget.The <strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>.’s financial reserves consist of Local Reserves,the CSU Chancellor’s Office Repair and Replacement Reserves(C.O.R.&R.), and the Uncommitted Facility Bond Fund Reserve(<strong>Student</strong> Fee Reserve). Targeted reserve levels established by theThe financial position of the <strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>. has always beenmonitored closely due to the impact of student enrollment fluctuationsMaintaining its three facilities, and providing quality programsand services are top priorities for the Board of Directors and the<strong>Student</strong> <strong>Union</strong> Staff.on the collection of student fees and increasing operational costs. Generatingadditional income from programsand services continues to be a priority dueto the increased operational needs of theaging facilities, especially utility costsand preventive maintenance. RevenueChancellor’s Office for a prudent financial position are $2.1–$2.3 millionin uncommitted Local Reserves and $3.5 million for the C.O.R.&R.The <strong>Student</strong> <strong>Union</strong> Board of Directors adopted an optimum minimumreserve level of $500,000 in the <strong>Student</strong> Fee Reserve.totaled $7,009,749 with operating expenses at $5,876,283 resulting ina net operating income of $1,133,466 for the year ended June 30, 2007.In addition, $558,053 in capital projects were expended from LocalReserves, of which, $79,520 were capitalized.Major changes occurred in Fall 2003 with the approval of an alternativefee consultation. This was a critical financial decision for the <strong>Union</strong> sincethere had been no fee increase in fourteen years. <strong>Student</strong> fees increased to$126 per semester in Spring 2004. The fee increase included a strategicplan to build up reserves and to fund approximately $500,000 in minorMaintaining its three facilities and providing quality programs andservices are top priorities for the Board of Directors and the <strong>Student</strong><strong>Union</strong> staff. The newly approved <strong>Student</strong> Center Facilities Project willbring much needed renovations and expansion of the current facilitieswhile enhancing services to the SJSU community.and major capital improvements annually.
2006-2007 Annual ReportBalance SheetsJune 30, 2007(with comparative totals for June 30, 2006)The <strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>. of San José State University(a California State University Auxiliary Organization)Assets20072006Current AssetsCash and Cash EquivalentsInvestmentAccounts ReceivablePrepaid Expenses and other Current Assets$ 555,255$ 2,036,895$ 281,870$ –$ 243,356$ 1,270,153$ 229,700$ 32,573Total Current Assets$ 2,874,020$ 1,775,782InvestmentsCapital Assets, Net$ 2,343,193$ 1,371,609$ 2,082,064$ 1,452,652TOTAL ASSETS$ 6,588,822$ 5,310,498Liabilities and Fund BalancesCurrent LiabilitiesAccounts PayableAccrued Payroll and Related ExpensesOther Accrued LiabilitiesDepository Accounts$ 442,007$ 336,190$ 190,108$ 181,628$ 342,890$ 310,826$ 137,705$ 99,776Total Current Liabilities$ 1,149,933$ 891,197Fund Balances$ 5,438,889$ 4,419,301TOTAL LIABILITIES AND FUND BALANCES$ 6,588,822$ 5,310,498<strong>Student</strong> <strong>Union</strong>, <strong>Inc</strong>. San José State University6 | 7
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