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Note 1

Note 2

Note 3

Note 4

Note 5

Note 6

Notes 7 - 14


NOTE 3

NOTE 3: Balance Sheet Details

a. Accounts receivable

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

2001

2000

Patient Care

$ 135,336

$ 110,393

Estimated Amounts Due from Third-Party Payors

17,064

11,781

Grants and Contracts

22,121

20,815

Health Services Foundation

5,751

5,046

Other

13,585

10,368

Less Allowance for Doubtful Accounts

(69,497)

(58,029)

     

TOTAL

$ 124,360

$ 100,374


b. Notes receivable

Notes receivable as of June 30, 2001 and 2000, are reported net of the allowance for uncollectible student loans, which amounted to $2.6 million and $2.2 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):

 
2001
2000
Unrestricted
Quasi-Endowment Funds
   
University of Virginia
Real Estate Foundation
$45,014
$36,578


d. Investment in plant

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


2001

2000

Land

$ 31,934

$ 30,073

Improvements Other than Buildings

168,715

77,109

Buildings

965,958

913,374

Equipment

484,699

473,047

Software Capitalization
14,366
7,884

Library Books

79,261

76,641

Construction in Process

135,435

166,453

Unamortized Bond Issue/Discount Cost

(1,309)

(1,419)

TOTAL

$ 1,879,059

$ 1,743,162


e. Restatement of prior year balances

Certain June 30, 2000 balances have been restated. Current Funds have been adjusted by $1,667,000 to reflect a reclassification of fund balance from Current Restricted to Current Unrestricted. Prior year's current unrestricted fund balance has been adjusted $24,000 to restate prior year's accrued compensated absences and other items.

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 -- 2001 (in thousands)

Due to Other Funds

Current
Funds

Endowment
Funds

Plant Funds

Agency Funds

Total

Current Funds

$ --

$2,325

$450

$ --

$2,775

Endowment and Similar Funds

--

--

--

48,394

48,394

Plant Funds

20,129

--

--

--

20,129

Agency Funds
--
--
--
--
--

TOTAL

$20,129

$2,325

$450

$48,394

$71,298



DUE FROM OTHER FUNDS -- 2000 (in thousands)

Due to Other Funds

Current
Funds

Endowment
Funds

Plant Funds

Agency Funds

Total

Current Funds

$ --

$3,713

$525

$475

$4,713

Endowment and Similar Funds

--

--

--

45,379

45,379

Plant Funds

8,886

--

--

--

8,886

Agency Funds
10,856
--
--
--
10,856

TOTAL

$19,742

$3,713

$525

$45,854

$69,834


g. Goodwill

On October 1, 1997, the Medical Center acquired from the University of Virginia Health Services Foundation the Medicine Clinical Laboratories in a transaction accounted for as a purchase. Accordingly, $1,800,000 was recorded as goodwill and is being amortized over five years.

On May 12, 2000, the Medical Center acquired from Augusta Health Care, Inc., the Kidney Dialysis Assets in a transaction accounted for as a purchase. Accordingly, $987,188 was recorded as goodwill for the purchase of the assets and is being amortized over five years. An additional $800,000 was recorded as goodwill for a Non-Competition Agreement and is being amortized over its ten-year life.

On December 15, 2000, the Medical Center acquired from the University of Virginia Health Services Foundation (HSF) its interest in the Hyperbaric Oxygen Unit. In July 1994 the Medical Center and HSF entered into a Memorandum of Agreement for the purpose of joint purchase and operation of a Hyperbaric Oxygen Unit. The Memorandum provided that HSF would own 67 percent interest and the Medical Center would own 33 percent. Accordingly, $1,166,615 was recorded as goodwill for the purchase of the assets and is being amortized over five years.


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