STATEMENT OF CASH FLOWS

University of Virginia
STATEMENT OF CASHFLOWS (in thousands)

FOR THE YEAR ENDED JUNE 30, 2015 (WITH COMPARATIVE INFORMATION FOR THE YEAR ENDED JUNE 30, 2014)
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
   Tuition and fees $ 492,356 $460,826
   Grants and contracts 280,811 272,717
   Patient services 1,420,743 1,249,671
   Sales and services of educational activities 26,909 41,648
   Sales and services of auxiliary enterprises 196,738 125,785
   Payments to employees and fringe benefits (1,517,469) (1,368,619)
   Payments to vendors and suppliers (963,916) (854,823)
   Payments for scholarships and fellowships (74,527) (73,802)
   Perkins and other loans issued to students (19,485) (20,274)
   Collection of Perkins and other loans to students 19,262 16,828
   Other receipts 40,209 55,811
NET CASH USED BY OPERATING ACTIVITIES (98,369) (94,232)
     
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES    
   State appropriations 152,008 161,204
   Additions to permanent endowments 17,907 11,738
   Federal Direct Loan Program receipts 122,941 123,554
   Federal Direct Loan Program payments (122,941) (123,554)
   Pell grants 12,957 12,619
   Deposits held in custody for others (7,554) (18,006)
   Noncapital gifts and grants and endowments received 145,847 159,590
   Other net nonoperating expenses (8,325) (913)
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 312,840 326,232
     
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES    
   Capital appropriations 37,907 42,551
   Capital gifts and grants received 20,969 23,570
   Proceeds from capital debt 344,337 101,741
   Proceeds from sale of capital assets 165,159 18,585
   Acquisition and construction of capital assets (473,804) (327,818)
   Principal paid on capital debt and leases (320,153) (47,284)
   Interest paid on capital debt and leases (47,435) (43,026)
   Deposit with trustee - 21
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (273,020) (231,660)
     
CASH FLOWS FROM INVESTING ACTIVITIES    
   Proceeds from sales and maturities of investments 352,981 318,782
   Interest on investments 1,807 4,230
   Purchase of investments and related fees (390,921) (218,333)
   Other investment activities 48,877 (5,014)
NET CASH PROVIDED BY INVESTING ACTIVITIES 12,744 99,665
     
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (45,805) 100,005
   Cash and cash equivalents — beginning of year 636,033 536,028
CASH AND CASH EQUIVALENTS — END OF YEAR $ 590,228 $636,033
     
RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES:    
Operating loss $ (365,069) $(359,477)
Adjustments to reconcile operating loss to net cash used by operating activities    
   Depreciation expense 216,172 199,188
   Pension expense 28,917 -
   Provision for uncollectible loans and write-offs 220 2,645
   Changes in assets, deferred outflows, liabilities, and deferred inflows:    
      Receivables, net (25,533) (15,162)
      Inventories (9,346) (4,129)
      Prepaid expenses (2,015) (521)
      Notes receivable, net 216 (3,808)
      Deferred outflows or resources (38,279) -
      Accounts payable and accrued liabilities 15,799 57,760
      Unearned revenue 5,650 20,297
      Accrual for compensated absences 21,858 8,975
      Deferred inflows of resources 53,041 -
      TOTAL ADJUSTMENTS 266,700 265,245
NET CASH USED BY OPERATING ACTIVITIES $ (98,369) $(94,232)
     
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES — ACADEMIC ONLY:    
   Assets acquired through assumption of a liability $ 5,906 $82,105
   Assets acquired through a gift 5,088 2,557
   Change in fair value of investments 375,387 790,193
   Increase in receivables related to nonoperating income 21,289 4,671
   Loss on disposal of capital asset 1,722 1,135

Certain 2014 amounts have been restated to conform to the 2015 classifications.
The accompanying Notes to Financial Statements are an integral part of this statement.