FY 2005 - University of Missouri System

N otes to Combined Financial StatementsF o r t h e y e a r s e n d e d J u n e 3 0 , 2 0 0 5 a n d 2 0 0 4Condensed Statements of Revenues,Expenses and Changes in Net Assets2005 2004MedicalMissouriMedicalMissouriAllianceCare L.C.TotalAllianceCare L.C.TotalOperating Revenues:Net Patient Revenue $ 123,745 $ - $ 123,745 $ 112,448 $ - $ 112,448Other Operating Revenue 37,202 37,202 41,314 41,314Total Operating Revenues 123,745 37,202 160,947 112,448 41,314 153,762Operating Expenses:Salaries and Wages 46,952 46,952 44,246 44,246Staff Benefits 12,018 12,018 10,692 10,692Supplies, Services and OtherOperating Expenses 51,244 36,121 87,365 46,007 41,355 87,362Depreciation 7,758 7,758 7,251 45 7,296Total Operating Expenses 117,972 36,121 154,093 108,196 41,400 149,596Operating Income (Loss) 5,773 1,081 6,854 4,252 (86) 4,166Nonoperating Revenues(Expenses):Investment Income 1,024 1,024 300 300Private Gifts 42 42 203 203Interest Expense (1,340) (1,340) (1,236) (1,236)Other NonoperatingRevenues (Expenses) 1,640 1,640Net Nonoperating Revenues(Expenses) 1,366 1,366 (733) (733)Increase (Decrease) in Net Assets 7,139 1,081 8,220 3,519 (86) 3,433Net Assets, Beginning of Year 73,530 4,657 78,187 70,011 4,743 74,754Net Assets, End of Year $ 80,669 $ 5,738 $ 86,407 $ 73,530 $ 4,657 $ 78,18720. 2004 RESTATEMENTSubsequent to the issuance of the University’s 2004 financial statements, the University’s management determined thatmisstatements had occurred in recording certain pledges receivable and the related revenue, summer academic sessiondeferred tuition revenue and related prepaid expenses, timing of recording payables related to construction in progressand the depreciation of library book acquisitions.In accordance with the provisions of GASB Statement No. 33, “Accounting and Financial Reporting for NonexchangeTransactions”, pledges receivable are recorded and revenue is recognized when a pledge is received and all eligibilityrequirements, including time requirements, are met. In fiscal year 2004, pledges receivable were recorded and revenuewas recognized for certain pledges received during fiscal year 2004 for which all eligibility requirements had not beenmet. The revenue recognition for these pledges will occur in subsequent fiscal years when all eligibility requirementsare met.In accordance with generally accepted accounting principles, revenues should be recorded in the periods earned andapplicable expenses should be recorded in the periods incurred. The deferred revenues for summer session student feesand related expenditures have been restated to record the portion of summer session student fees earned and relatedexpenditures incurred prior to June 30 in the current fiscal year and the portion after June 30 in the following fiscalyear.2 0 0 5 F i n a n c i a l R e p o r t : U n i v e r s i t y o f M i s s o u r ia c o m p o n e n t u n i t o f t h e S t a t e o f M i s s o u r i 51