NOTES TO FINANCIAL STATEMENTS

NOTE 3: Balance Sheet Details

a. Accounts receivable
Current Fund accounts receivable as of June 30 include the following (in thousands):

1997

1996

Patient Care

$87,888

$71,244

Estimated Amounts Due from Third-Party Payors

15,343

17,999

Grants and Contracts

14,524

12,586

Health Services Foundation

11,664

3,569

Other

7,105

5,213

Less Allowance for Doubtful Accounts

(39,442)

(28,603)

Total

$97,082

$82,008

b. Notes receivable
Notes receivable as of June 30, 1997 and 1996, are reported net of the allowance for uncollectible student loans which amounted to $2.0 million and $1.9 million, respectively.

c. Advances to foundations
The University advances funds to affiliated foundations to enable the foundations to acquire real property in areas near the University and to enhance foundation operations. Foundations are expected to make principal repayments as funds become available. The Board of Visitors has authorized up to $55 million for advances to the University of Virginia Real Estate Foundation from unrestricted quasi-endowment funds. Advances as of June 30 include the following (in thousands):

1997

1996

Unrestricted Current Funds

University of Virginia
Auxiliary Services Foundation

$ 500

$ 500

Unrestricted Quasi-Endowment Funds

University of Virginia
Real Estate Foundation

$ 37,389

$ 42,384

Expendable Plant Funds

University of Virginia
Law School Foundation

$ 6,500

$ 6,500

d. Investment in plant
Investment in plant as of June 30 consists of the following (in thousands):

1997

1996

Land

$ 15,098

$ 13,358

Improvements Other than Buildings

66,970

66,120

Buildings

802,957

787,192

Equipment

413,382

388,641

Library Books

58,412

56,537

Construction in Process

93,633

60,245

Unamortized Bond Issue/Discount Cost

1,735

1,916

Total

$1,452,187

$1,374,009

e. Restatement of prior year balances
Certain June 30, 1996 balances have been restated to reflect their true classification. Current Funds have been adjusted by $340,000 to reflect a reclassification of investment balances from Current Restricted to Current Unrestricted and $2,000 for other miscellaneous adjustments to Current Unrestricted Funds.

f. Interfund obligations
Interfund obligations are recorded on each fund as due to/due from other funds. Such borrowings are authorized in advance by the Board of Visitors or administrative action. The borrowings have identifiable repayment schedules in most instances and provide needed working capital or cash advances for special projects. Interest is charged in appropriate instances. Amounts due from and payable to other funds as of June 30 are as follows:

Due From Other Funds * 1997 * (in thousands)

Due to Other Funds

Current Funds

Endowment Funds

Plant Funds

Agency Funds

Total

Current Funds

$ --

$ 3,034

$ 460

$ 320

$ 3,814

Endowment and Similar Funds

23,076

23,076

Plant Funds

12,180

12,180

Total

$ 12,180

$ 3,034

$ 460

$ 23,396

$ 39,070

Due From Other Funds * 1996 * (in thousands)

Due to Other Funds

Current Funds

Endowment Funds

Plant Funds

Agency Funds

Total

Current Funds

$ --

$ 6,209

$ 470

$ 14

$ 6,693

Endowment and Similar Funds

221

50,621

50,842

Plant Funds

13,352

13,352

Total

$ 13,573

$ 6,209

$ 470

$ 50,635

$ 70,887

Notes to Financial Statements | Note 1 | Note 2 | Note 3 | Note 4 | Note 5 | Note 6 | Note 7 | Note 8 | Note 9 | Note 10 | Note 11 | Note 12 | Note 13


President's Report 1996-97 Contents

Financial Report 1996-1997