1. FY2015 Annual Financial Report Operating Statement (SRECNP) Highlights January 2016

2. Annual Financial Report Highlights Comprised of three primary statements with many supporting schedules:Comprised of three primary statements with many supporting schedules: –Statement of Net Position (Balance Sheet) –Statement of Revenues, Expenses and Changes in Net Position (Operating Statement or SRECNP) –Statement of Cash Flows Comprised of three primary statements with many supporting schedules:Comprised of three primary statements with many supporting schedules: –Statement of Net Position (Balance Sheet) –Statement of Revenues, Expenses and Changes in Net Position (Operating Statement or SRECNP) –Statement of Cash Flows

3. Statement of Revenue, Expenses, and Changes in Net Position (SRECNP) This statement reports the results of operations for the year.  Tuition and Fees increased by $14.5M. Discount and Allowances increased by $7.1M for a net increase of $7.4M. The net increase is primarily due to an earlier fall semester start date with more class days in August 2015 than in August 2014.  Other Operating Revenue increased $5.8M primarily due to an increase in educational activities sales and services, housing revenue and athletics conference revenue.  Operating Loss does not include State Appropriations or Pell revenue.  Net Investment Income increased $7.1M due to increases in both the short-term and distributed investment account earnings. That increase was offset by a $54.0M net decrease in the fair value of investments due to a decrease in long-term investments as well as market performance. Cash was needed to cover operations due to delays in state reimbursements.  Transfers include:  Mandatory: debt service payments  Non-Mandatory: anticipated bond proceeds used to fund construction projects.  Net Position decreased by $11.6M in FY 2015. ($ In Millions)

4. FY2015 Sources of Operating Revenue by Category ($ in Millions)

5. FY2015 Sources of Operating Revenue by Category – 5 Year Trend ($ in Millions)

6. FY 2015 Sources of Operating Revenue ($ in Millions)

7. FY 2015 Sources of Operating Revenue – 5 Year Trend ($ in Millions)

8. FY15 Operating Uses of Funds ($ in Millions)

9. FY15 Operating Uses of Funds – 5 Year Trend ($ in Millions)

10. Reconciliation of Research Expenditures to AFR Operating Expenses - Research Reconciliation: FY15 FY14 Statement of Revenues, Expenses and Changes in Net Assets - Research Expenses $ 42,033,631 $ 37,961,038 Facilities and Administration (F&A)6,052,113 5,609,170 Capital Outlay3,736,342 1,811,649 *Total Research Expenditures $ 51,822,086 $ 45,381,857 * As Reported on THECB Research Expenditure Report

11. FY 2015 AFR Summary  UTSA continues to receive a “Satisfactory” rating from UT System as a result of a healthy financial condition.  UTSA’s operating margin ratio increased from 2.4% for FY2014 to 3.8% for FY2015.  Increase attributable to an increase in total operating revenues of $27.9M that outpaced the growth in total operating expenses of $20.3M.  FY2015 included the revenue associated with seven additional class days.  UTSA continues to receive a “Satisfactory” rating from UT System as a result of a healthy financial condition.  UTSA’s operating margin ratio increased from 2.4% for FY2014 to 3.8% for FY2015.  Increase attributable to an increase in total operating revenues of $27.9M that outpaced the growth in total operating expenses of $20.3M.  FY2015 included the revenue associated with seven additional class days.