University of New Orleans (UNO) Foundation · The University of New Orleans Foundation (UNOF), a...

UNIVERSITY OF NEW ORLEANS FOUNDATION

Consolidated Financial Statements and Schedules

December 31,2013

With Independent Auditors' Report Thereon

under provisions hgs ̂ ^

Release DatellHl 0 9 201^

iiSAI Postlethwaite AiSlkl &Netterville

A Prot*is>ond Accounting Corporation

wwMiLpiiq>a.com


CoDSolidated Financial Statements and Schedules

December 31,2013

With Independent Auditors' Report Thereon

mrVERSITY OF NEW ORLEANS FOUNDATION

December 31,2013

Table of Contents

Page

Independeiit Auditors* Report 1 - 2 .

Consolidated Statement of Financial Position 3

Consolidated Statement of Activities 4

Consolidated Statement of Casb Flows 5

Notes to Consolidated Financial Statements 6-22

Supplemental Schedules -

Consolidating Statement of Financial Position 24 - 25

Consolidating Statement of Activiti^ 26 - 27

Schedule 1 — Privateer Adiletic Foundation -Revenue, Support, and Expenses 29

Schedule 2 - University of New Orleans hitemational Ahmmi Association — Revenue, Support, and Expenses 30

Schedule 3 - National Collegiate Adiletic Association - Revenue, Support, E}q)enses, and Capitalized Expenditures Made to or on Behalf of the University's Intercollegiate Athletics Program 31

Supplemental Schedules - GASB Schedules* 32 - 50

GASB schedules in format prescribed by the Foundation.

liiSAI Postlethwaite UBulLl &Netterville

A Proieukwiol AccounNng CorporotJon Associafsd Offlcflt In Prfndpol QHat of lha Unllad Slolat

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INDEPENDENT APDITORS' ItEPORT

To the Board of Directors University of New Orleans Foundation.

Report on the Consolidated Financial Statements

We have audited die accompanying consolidated financial statements of the University of New Orleans Foundation, (a nonprofit organization) (the Foundation) and its subsidiaries, which comprise the consolidated statement of financial position as of December 31, 2013, and the related consolidated statements of activities and cash flows for the year dien ended, and die related notes to the consolidated financial statements.

Management's Responsibility for the Consolidated Financud Statements

Management is responsible for the preparation and &ir presentation of these consolidated financial stalonents in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to die preparation and fair presentation of consolidated financial statements that are free fitim material misstatement, whether due to fraud or enor.

Auditors' Re^onsibility

Our responsibility is to express an opinion on diese consolidated financial statements based on our audit We conducted our audit in accordance wxdi auditing standards ^nerally accepted in the United States of America and the standards applicable to finnnoial audits contained in Government Auditing Standards^ issued by the Comptroller General of the United States. Those standards require tiiat we plan and perform the audit to obtaiix reasonable assurance about whether the consolidated financial statements are free of material misstatement

An audit iiwolv^ performing procedures to obtain audit evidence about the amounts and disclosures in financial statements. The procedures selected depend on the auditors* judgment,

of the risks of material misstatement of the consolidated financial statements, • error. In malring those risk assessments, the auditor considers iatemal control

preparation and fair presentation of the consolidated financial statements in order to audit proeedm^ that are appropriate in tiie circumstances, but not for the purpose of e?qnessing an opinioa oo the effectiveness of the entity's internal controL According, we express no such opinioiL An audit also iiiclydes evaluating tiie appropriateness of accounting policies used and the reasonableness of significant accoimtlBg-estimates made by management, as well as evaluating tiie overall presentation of the cd^lidated'fiuiancial statements.

We believe that the audit evidence we have obtained is sufficient and appropr^ to provide a basis for our audit opinioiL

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30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 800.201.7332 One Galleria Blvd.. Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609

Opinion

la our opinion, the consolidated financial statements referred to above present fairly, in all matmal respects, the consolidated statement of financial position of the University of New Orleans Foundation as of December 31, 2013, and the consolidated statement of changes in its net assets and its consolidated statement of cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our aiiait was condiicted for the purposes of forming an opinion on the consolidated financial statements as a>whofe. The consoliclatingjinfoiination on pages 24 through 27 is presented for purposes of additional lanalysis of the coiisoHdated financial statements rather than to present the financial position, changes in met assets, and cash flows of the individual organizations. The supplementary information included in iScliediiles 1 through 3 on pages 29 through 50 is presented for purposes of additional analysis and is not a frequhod parti iof< the: consolidated financial statements. Such infonnation is the responsibility of imanageinetit and .was derived fixim and relate directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing

•procedures'appiiedlibittie audit of the consolidated financial statements and certain additional procedures, lindudmg comp^ing and reconciling such information directfy to tiie und^lying accounting and other ; records used to pre^e the consolidated financial statements or to tihe consolidated financial statements •themselves, and other "additional procedures in accordance with auditing standards generally accepted in the United.States.of.!Ajoierica:. In our opinion, the infomiafion is &irly stated in all material respects in relation to die consolidated financial statements as a whole.

Other Pftpnrrinp Required bv Government Au£tme Standards

}st B.cciyt^mc&iWiih.\GoverTonent Auditing Standards, we have also issued our report dated June 23, 2014, on tour considemflou" of the Foundation's intenial control over financial reporting and our tests of its

provisions of laws, regulations, contracts, and grant agreements and other lat-repoit is to describe the scope of our testing of internal control over financial and die results of diat testing, and not to provide an opinion on die internal

^ or on compliance. That report is an integral part of an audit performed in Government Auditing Standards in considering the Foundadcm's internal control over

*iance.

Metairie, Louisiana June 23,2014

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Consolidated Statement of Financial Position

As of£>ecend)er31,2013

Assets CufTCQt assets;

Cash and cash equivaients (Note I and 14) Restricted assets:

Cash and cash equivalents (Note 1) Investments (Note 2, 8,12, and 13) UttconditiQoal promises to g^ve, ntt (Note 3)

Accounts receivable Contributions receivable Grants receivable Notes receivable ' Deferred charges and prepaid ejqpenses

Total current assets

Noncurrent assets: Restricted assets:

htvestnients (Note 2,12, and 13) Unconditioiial promises to ̂ ve, net (Note 3)

Real estate, net (Note 4) Property and equipment, net (Note S) Odier ooncunent assets

Total noncurrent assets

Total assets

Liabilities and Net Assets Current liabilities:

Accounts payable and accrued liabilities Amounts held in custody for othns (Note 11) Currat poftion of bonds p^able Transfer of Tnist (Note 8) Other cuir^ liabilities - due to University (Note 11)

Total curreaol liabilities

Noncurrent liabilities: Amounts invested for others (Note 9 and 13) Bonds payable, net of cuirart portion (Note 6)

Total noncurroit liabilities Total liabilities

N^ assete: Unrestricted Tenqrorarily restricted (Note 7,8, and 13) Permanently restricted (Note 7,8, and 13)

Total net assets

Total liabilities and net assete

4,551,533

1.542.688 4,083,652

362,744 241,748 565,547 205,429 20,743

• 41,158 11,615,242

74,262,634 64,750

12.121,223 38,722

108.523 86,595,852

98,211.094

2,229,536 641,127 170,000

4,083,652 738.888

7,863,203

19,214,228 367.000

19,581.228 27,444.431

16,996,381 24,425,272 29,345,010 70,766,663

98,211,094

Hie accompanying notes are an inte^al part of this consolidated financial statement

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Consolidated Statement of Activities

For the year ended December 31,2013

Temporarily Permanently Unrestricted Restricted Restricted Total

Support and revenue: Contributions S 4,378,080 2,737.863 762,831 7,878,774 Contribution of property improvanents (Note 11) 1,542,265 - • - 1342365 Giants 1,242,013 - - 1342,013 Investment income 1,141,832 4,786350 18345 5,947357 Service fees (Note 1) 757,905 174307 7,075 939,887 Salary support - R&T Foundation (Note 1 and 11) 546,612 - - 546,612 Gain on sale of asset (Note 4) 1,858,294 - - 1.858394 Other income 996,433 6,000 - 1,002,433

- Total si^^rt and revenue before net assets released from lestrictions/transferTed 12,463,434 7,705,750 788,451 20,957.635

Net assets released fiom restrictions/lransferTed: Net assets released from restrictions (Note 8) 6,200,699 (6300.699) - -Transfers ^ote S) (200) 601,400 (601300) -

Total net assets released/transferred 6,200,499 (5399399) (601300)

Total revenue and siqiptvt 18.663,933 : 2,106.451 187351 20357,635

Eiqieiises: Program support (Note 10) 11,899,017 - - 11,899,017 Property operations (Note 10) 649,596 - - 649396 flBlnries and 546,612 - - 546.612 Dues and subscripfioDS 40,287 - - 40387 Meetings 40,952 - - 40352 Travel 2,669 - - 2,669 Office operations 51,668 - - 51.668 Professional services 543,415 - - 543,415 Depredation and amortization 364,412 - - 364,412 Donation of property (Note 4) 879,341 - - 879,341 OtfaCT 32,983 - - 32383

Total expenses 15,050,952 15,050352

Qiange in net assets 3,612,981 2.106,451 187351 5,906,683

Net assets at beginning of year 13353,400 22.318.821 29,157,759 64.859380

Net assets at end of year- $ 16396381 24,425372 29345,010 70,766,663

The flccompftnying aotes are an integral part of this consolidated financial statonent

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Consolidated Statement of Cash Flows

For tfaeyearended Decembers], 2013

Cash flows from operating activities: Oiange in net assets Adjustments to reconcile change to net assets b> cash flows from (^eratii^ activities:

Depreciation and amortization Gain on sale of asset Contnbution of property improvemenb Donation of property Realized gain on investments, net Unrealized gam on iavestmoits, net Restricted long-tenn contributions pledged Recovery of bad debt expoise Changes in assets and liabilities:

Accounts, contributions, grants, and notes receivable Other assets Accounts payable, accrued liabilities, and other liabilities

Net cash provided tty operating activities

Cash flows from investing activities: CapitaUzed costs of improvements to real estate, property, and equipment Proceeds from sales of real estate, property, and equipmoit Purchases of investments, Change in amounts invested for others - noncurrent, net

Net cash used in investii^ activities

Cash flows from financing activities: Collections of contributions restricted frrr long-term purposes Reptyment of bonds payable and capital lease obligation

Net cash used in financing activities

Change in cash Cash and cash equivalents including restricted cash at beguming of year Cash and cash equivalents including restricted cash at rad of year

Composition of cash and cash equivalents: Unrestricted - cash and cash equivalents Restricted - cash and cash equivalents

SUPPLEMENTAL NON-CASH FLOW DISCLOSURE: Cash paid during dre year for interest Contribution of property impiovraneiits Donation of property

5,906,683

364,412 (1,858^294) (1.542,265)

879,341 (2,541,871) (2346,447)

(174,100) (98,677)

3,951.164 12348

357,480

2,910374

(1,350375) 3325,000

(10309,622) 5,025,866

(3,409,031)

620,360 (636,441)

(16,081)

(514,738) 6,608,959 6.094321

4,551,533 1,542,688

6,094321

37,113 (1,542365)

879,341

The accompanying notes are an integral part of this consolidated financial statement

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UNTVERSITY OF NEW ORLEANS FOUNDATION

Notes to Consolidated Financial Statements

December 31,2013

(1) Summary of Significant Acconotiflg Policira

(a) History and Organi^don

The University of New Orleans Foundation (UNOF), a registered non-profit corporation in Louisiana, was established in 1984 with a mission of serving the University of New Orleans (the University) by raising private sector funds for die advancement of the University. During the year ended December 31, 2013, the Foundation seated three wholly owned subsidiaries, University of New Orleans Foundation Real Estate Company, L.L.C. (UNOFREC), University of New Orleans Foundation Working Interest, LX.C. (UNOFWI), and University of New Orleans Foundation Ro^ty Company, L.L.C. (UNOFRC), (collectively, die Foundation), which are disregarded entities for income tax purposes. The purpose of die subsidiaries is to receive and hold funds and property for the advancement of the University.

The consolidated financial statements of the Foundation have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the financial statements of UNOF and its three wholly-owned controlled subsidiaries. Ail significant intercompany balances and transactions have been eliminated in consolidation. The significant accounting policies followed in the preparation of die accompanying consolidated financial statements are described below.

(b) Financial Staiemeni Presentation

The Foundation follows the provisions for not-for-profit orgaoizations and includes three basic consolidated financial statements and the classifications of resources into three separate classes of net assets as follows:

• Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. • Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that

may or will be met either actions of the Foundation and/or die passage of time. • Pennanentty restricted net assets - Net assets subject to donor-imposed stipulations that

neither expire hy the passage of time nor can be fulfilled and removed by actions of the Foundation pursuant to diose stipulations.

(c) Cash and Cask Equivalents For die purposes of the Consolidated Statement of Cash Flows, the Foundation considers all hi^y liquid investments purchased with a maturity of three months or less to be cash equivalents.

(4^ Unconditional Promises to Give

Unconditional promises to give are recognized as revenue in die period received. Promises to give are record^ at dieir realizable value if they are eiqiected to be collected in one year and at foeir foir value if tiiey are ejqDected to be collected in more dian one year. Conditional promises to give are recognized only ̂ oi the conditions on \^4iich they depend are substantially met and the promises become unconditionaL An allowance for doubtful accounts has been established based on managements assessment of collectabiUty.

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UNIVERSriY OF NEW ORLEANS FOUNDATION


December 31,2013

(1) Summary of Significant Accoanting Policies (continued)

(e) Investments

jOavestments in equity securities with readily determinable &ir values and all investments in debt securities are measured at &ir value in the consolidated statement of financial positioD. Income or loss on investments, including realized and unrealized gnins and losses on investments, interest and dividends, are allocated ratably to the participating funds. Investment gain«i on restricted net assets are classified consistent with the related investment income unless specific donor or legal restrictions dictate otherwise.

Realized gains and losses, and declines in value judged to be other than temporary, are included in net appreciation (depreciation) of investments. Realized gains and losses on the sales of securities are determined using the specifioidentification method. A decline in the feir value of investments below cost that is deemed to be other than temporary results in a charge to change in net assets and the establishment of a new cost basis for the iovestmest

(/} Real Estate

Real estate is held for investment development; or sale purposes and is recorded at cost or fair market value on the date acquired. Depreciation of real estate (excluding land) is calculated on the straight-line basis ranging from ranging from 5 years to 20 years for improvements and equipment to 20 years to 40 years for buildings.

(g) Property and Eqmpment

Assets acquired are stated at cost, net of accumulated depreciation. Assets donated are carried at fair maricet vahie on the date of donation, net of accumulated depreciation. Depreciation of property, fiimishii^, and equipment is provided over the ^timated useful lives of ̂ e respective assets on the straight-tine basis ranging from 3 years to 7 years for vehicles and equipment

Maintenance and repairs are charged to expense as mcuired; major rene\(^ and betterments are c^italized. When hems of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is included in income.

(h) Impairment of Long-Uved Assets

Impairment of long-lived assets is tested ^enever events or chants in circumstances indicate that tiieir carrying amount may not be recoverable. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying vahie. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset Fair market vahie is detennined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fiiir market values are reduced for the cost to dispose. The Foundation Fecogoized no impairments duri^ the year ended December 31,2013.

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UNIVERSITY OF NEW GRUEANS FOUNDATION


December 31,2013

(I) Summary of Significant Acconnting Policies (continued)

(i) Amounts Invested for Others and Amounis Held for Others

Amounts invested for others represent funds held in trust for others. These amounts are not owned by the Foundation (see Note 9). The Foundation considers unexpended income from these funds as amounts invested for others. In addition, the Foundation administers the financial assets and mamtamg the financial records of other entities affiliated v/itix the University, which are amounts held for others and not owned by fiie Foundation (see Note 11).

Q) Restricted and Unrestrict^ Revenue

Contributions are recognized when die donor makes a promise to give to the Foundation that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the year in which die contributions are recognized. All othCT donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of die restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Fee revenue primarily relates to fees earned by the Foundation for managing the investments on behalf of dxe University. Service fee revenue is recognized on a quarterly basis as a percentage of the investment balances.

Salary support is recognized for the allocation of salaries paid on behalf of the University of New Orleans Research and Technology Foundation (R&T) (see Note 11).

(k) Fundraising Expenses

All expenses associated with fundraising activities are expensed as incurred, including any expenses related to fimdraising appeals in a subsequent year. Total supporting servic^ expenses related to fundraising for the year ended December 31,2013 was $622,717.

(Q Income Taxes

Income taxes have not been provided for in the consolidated financial statements as the Foundation was organized as a non-profit organization under Section S01(GX3) of the Internal Revenue Code of 1986, as amended, and is, therefore, of tax exempt status. Income taxes have not been provided for the three LLCs. Based on revi^ of die entities whoe the Foundation has an ownership interest, management has determined that no tax .eiqpense or tax liability as of December 31,2013 should be provided for in the consolidated financial statements.

The Foundation applies a "more-likely-tban-notr recognition threshold for all tax unc^tainties. This approach only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. As a result of implementing this approach, the Foundation has reviewed its tax positions and deteamined there were no outstanding or retroactive tax positions with less than a 50% likelihood of being sustained upon exainmation by the taxing audiorities. Therefore, the implementation of diis standard has not had a material effect on the Foundation.

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December 31, 2013

(1) Summary of Significant Accoonting Polici& (continned)

Income Taxes (continuet^

Die Foundation's tax returns for the years ended December 31,2013 and December 31,2012, the period ended December 31, 2011, and the year ended June 30, 2011 remain open and subject to examination by taxing authorities. The Foimdation's tax return for the year ended December 31, 2013 has not yet been filed.

(m) Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect die reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of die consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estiinates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, die valuation of fixed assets, and investments.

Investments

fiivestments are reported in the accompanying consolidated statement of financial position as current investments of $4,083,652 and noncuirent investments of $74,262,634 at December 31, 2013, totaling $78,346,286.

The composition of investments, stated at fair value, at December 31,2013 was as follows:

Fixed income Common and preferred stocks Mutual funds (Note 12) International stocks Hedge fimd REITS Oil and gas interests Land

9,424,244 11,274,504 44,717,536

2,303,194 6,029,087 1,000,213

75,027 3322.481

78346,286

Investment income is reported net of investment expenses in the accompanying consolidated financial statements. Net investment income consisted of the following for the year ended December 31,2013:

Interest and dividends Realized gains, net Unrealized gains, net Investment related expenses

1360338 2,541,871 2,346,445 (301,197)

5,947357

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December 31, 2013

(3) Unconditiona] Promises to Give

Unconditional promises to give are included in the consolidated financial statements as unconditional promises to g^ve and revenue of the appropriate net asset categories.

As of December 31, 2013, contributions receiv^le were expected to be realized in the following periods:

Jfa one year or less - current $ 362,744 Noncuirent

Between one year and five years 172,820 In five years or more 22,500

less: Present vahie discount (5%) (55,130) Allowances for uncollectible pledges (75,440)

Noncuirent promises to give, net 64,750 Promises to give, net $ 427,494

Contributions receivable have the foUowing restrictions:

Temporarily restricted donor imposed stipulations for university programs, activities, and building construction $ 359,814

Endowment for university programs and activities 67,680 $ 427,494

Unconditional promises to give are reported in the accompanying consolidated statement of financial position as current promises of $362,744 and noncunent promises of $64,750 at December 31,2013.

(4) Real Estate

As of December 31, 2013, the Foundation held several real estate properties totaling $12,121,223, which is net of $2,672,779 in accumulated depreciation. The following is a summary of the propeitiea at December 31,2013.

hi November 1993, the Foundation acquired by donation a 120,000 square foot office building located in downtown New Orleans. In 2012, the Foundation entered into an agreement to sell the property which was subsequently sold in 2013 at no gain or loss.

On December 30, 1994, tiie Foundation purdiased a complex of buildings in tiie Lee Circle area of downtown New Orleans from a private company. During the year ended December 31, 2013, the Foundation sold one the boiidings in the Lee Circle area for $2,225,000 at a gain of $1,858,294 as shown in the Consolidated Statement of Activities.

The remainder of the property is being used for tiie Ogden Museum of Southem Art ("Ogden Museum") and to support tiie teaching mission of the UNO Fine Arts Department

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December 31,2013

(4) Real Estate (contiDued)

Tbe Patrick F. Taylor Memorial Library (Taylor Library) phase of Ac Ogden Museum was financed wiA private funds. Through December 31, 2013, the FoundatioD had expended $4.5 million in constniction related costs to renovate this historic building. A separate entity that governs Ae Ogden Museum, The Ogden Museum of SouAem Ait, Inc. (Ae Museum Board), operates and supports Ae Ogden Museum, and Ae Foundation is no longer funding or operating Ae Museum. Pursuant to an operating agreement between Ae Foundation and Ae Museum Board, Ae Foundation makes Ae Taylor Library available to Ae Museum.

hi December 1996, an act of donation was executed whereby a collection of artwork was donated to Ae Foundation conting^t on cnmpletion of an appropriate Museum structure to showcase Ae artwork. A significant portion of Ae donor's artwork has been loaned to Ae Museum for display in Goldring lAll, which is owned by Ae University of New Orleans, in 2004, Ae Foundation and Ae donor modified Aeir understanding to clarify that Ae remainder of Ae artwoik would be donated and title would be transferred by fisc^ 2007, assuming that Ae Taylor Library has been completed by Aat time and Ae passa^way connecting Ae Taylor Library to Goldring Hail is Aen operational. As of December 31, 2013, Ae Taylor Library remains incomplete. Due to Ae Foundation's policy on capitalizing art collections, no amount has been recorded in Ae consolidated financial statements.

During November 2003, Ae Foundation entered mto an agreement to lease certain real estate located betweoi Goldring Hall and Ae Taylor LAraiy to a third party for no rental payments for ten years. Since Ae Foundation will receive no anTnial rent or cash proceeds for Ae real estate, Ae net book value of Ae real estate of $400,923 was written-off at June 30,2004.

In addition, Ae Foundation made a portion of this real estate available to Ae Museum Board in order for Ae Museum Board to build a passageway coimecting Goldring Hall and Ae Taylor Library. At Ae earliCT of Ae passa^way being completed or Ae end of Ae lease term, Ae ownership of Ae real estate was to bo transferr^ to Ae third party at no cost to that third party. Work on Ae passageway has been completed. The ownership of Ae real estate was transferred to that Aird party during Ae year ended December 31, 2013 in Ae amount of $879,341. Following Ae transfer, Ae Foundation has retained a right of access to Ae passageway portion of Ae propoty.

In July 2001, Ae Foundation purchased fi^om a private company a 108,000 square foot building in ^pport of Ae University of New Orleans film program and named Ae building Ae Robert E. Nims I Center for Botertainment Arts (Ae "Nims Center") in honor of its primaiy benefactor. The property was ! purchased for approximately $1.8 million, which was entirely financed through Ae issuance of bonds | (see Note 6). The Foundation has entered into a cooperative endeavor agreement wiA Ae University, whereby Ae University reimburses Ae Foundation approximately $200,000 annually for Ae use of Ae I Nims Center from July 1,2000 Arough June 30,2016.

i In August 2005, Ae Foundation acquired by donation a 73,152 square foot building adjacent to Ae Nims Center which was originally valued at approximately $1.5 millimi. Through December 31,2013, i Ae Foundation had expended $5.6 million in construction related costs to improve tiiis building.

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UNIVERSITY OF NEW ORLEANS FOUND ATION


December 31,2013

(4) Real Estate (continued)

During fiscal year 2012, the Foimdation purchased the proper^ for the UNO President's ojSicial residence. The residence is being leased to iht University for $1 per year for 30 years. The purchase of the property was internally financed through a Board approved loan of $619,995 ficm the Foundation's general endowment funds to the unrestricted fund, which bears interest at a fixed rate of 4% and is being paid in monthly installments of principal and interest totaling $2,946 over a thirty year period. Fifty percent of die annual cost of the principal and interest of ̂ proximately $35,000 is received from R&T. The building and improvements are being depreciated over 30 years.

Real estate held for investment development, or sale consisted of the following at December 31,2013:

Chevron: Land $ 129,000 Building 231,788

Official Residence: Land 167,800 Building and improvements 504,895

Nims Center Complex: Land 721,500 Building and improvements 4,962,904 Work in progress 3,323,788

Lee Circle Prc^ertics: Taylor Library land 249,136 Taylor Library 4,503,191

14,794,002 Less accumulated depreciation (2,672.779)

$ 12,121,223

Depreciation expense on real estate for the year ended December 31,2013 was $332,198.

(5) Property and Equipment

Property and etpiipment consisted of the following as of December 31,2013:

Equipment - fiimiture $ 30,544

Equipment - other 356,008 386,552

Less accumulated depreciation (347,830) $ 38,722

Depreciation expense on property and equipment for the year ended December 31, 2013 was $29,985. The property and assets shown above are owned by the Foundation, but die m^ority of diese assets are used by the University of New Orleans in support of its educational and research activities.

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DNIVERSriY OF NEW ORLEANS FOUNDATION


December 31,2013

(6) Bonds Payable

Bonds payable consisted of the following as of December 31,2013:

Bond payable to a banl^ interest payable semi-annually, principal payable in annual installments ranging from $170,000 to $188,000, bearing into^ at 2.093%, due in 2016. These bonds are secured by land and building related to the Nims Centex (see Note 4). $ . 537,000

L«ss amounts payable currently (170,000)

Long-term portion $ 367,000

Annual maturities of debt are as follows:

Year Ending Amount

2014 $ 170,000 2015 179,000 2016 188,000

Total $ 537.000

hiterest e?qpense related to bonds payable during the year ended December 31, 2013 was $13,205. Interest expense paid as shown on the Consolidated Statement of Cash Flows includes interest paid on the tennination of the capital lease during the year ended December 31, 2013. Depreciation and amortization expotse in the Consolidated Statement of Activities includes $2,229 on the bond payable for the year ended December 31,2013.

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Decembers!, 2013

(7) Net Assets

Temporarily and permanently restricted net assets are restricted to the following at December 31,2013:

Temporarily restricted: Riiilding fiinds $ 1,882,680 Scholarships 4,623,485 Faculty-salaiy supplements 1,756,492 Research 6,085,341 Educational studies program 4,885,230 Departmental development 5,192,044

Total temporarity restricted $ 24,425,272

Permanently restricted: Scholarships $ 3,834,507 Faculty- salary supplements 3,757,200 Research 10,132,061 Educational studies program 10,213,041 Departmental development 1,408,201

Total permanently restricted $ 29,345,010

(8) Net Assete Released from Restrictions

Net assets were released from donor restrictions by incuning program related expenses satisfying the restricted purposes specified by donors for the year ended December 31,2013.

The Ernest C. and Yvette C. Villere Chair in Neuroscience - TTie University of New Orleans - Trust was created on March 8, 1991 for the sole benefit of the LSU Board of Supervisors (the "Board of Supervisors*^ acting on behalf of the University of New Orleans. At the time of the gift, die Board of Supervisors was the governing authority of the University, fri 2012, the governing authority was ch^ged to the University of Louisiana Board. The Trust was fimded by a $600,000 donation from private sources. Pursuant to the Louisiana Board of Regents Support Fund Endowed Chair Program, the private funds were supplemented by a $400,000 gift to die Trust.

The Trust Instrument provides that the funds placed in the Trust were to be used to establish and fimd a chair at die University for the stu(fy of the cause and care of retinal degeneration (the "Villoe Chair**)-The chair is currently vacant due to die University's lack of the fecltities necessary to perform such research. Therefore, die University, with the agreement of the other trustee, has determined diat die purpose of the trust could best be achieved by transferring the trust funds to the Lonisiana State University Healdi Sciences Foundation CLSUHSC Foundation") for the sole purpose of establishing funding, and administering the Villere Chair at the LSUHC Foundatioit

At year end, the Trustees are in process of gatning the necessary approval from the University of Louisiana Board of Supervisors to proceed with die termination of die Trust and transferring the net assets to the LSUHSC Foundation. At December 31,2013, the Trust balance of $4,083,652 is reflected as a liability in the consolidated financial position.

-14-



December 31, 2013

(9) The Lonisiaoa Endowment Trust Fund for Endowed Chairs and Professorships

One of the Foundation's primary objectives is to raise and manage funds to provide endowed professorships and chairs to the University. The Louisiana Endowment Trust Fund for Endowed Chairs and Professorships was created by the Louisiana legislature in 1983 to provide state funds to eligible public and private institutions which would be responsible for providing matching funds obtained from gifts.

Endowed professorships are established at $100,000 and endowed chairs at $1,000,000, with the Board of Regents providing 40% of the funding once die Foundation has acquired 60% of the principal throu^ private gifts.

The University is allowed to appty for the 40% match while maintaining the 60% private gift in the Foundation. Funds are pooled for investment purposes in the Foundation, but the Board of Regents* 40% match is recognized as a liability to the University under the caption "Amounts invested for others." The amount invested for others in noncunent liabilities at December 31, 2013, ftiat was attributable to the Endowed Chairs and Professorships, was $19,214,228.

(10) Program Expenses

Program expenses during the year ended December 31,2013, were incurred for:

Program Property Support Operations Total Expenses

Transfers to the University and relate organizations $ 6.845,982 $ 156,650 $ 7,002,632

hiterest expense - 37,112 37,112 Contract services 753,971 44,071 798,042 Official functions 317,645 61,654 379399 Personnel costs 230,184 222 230,406 Property maintenance and rent 37,399 47369 84,768 Office supplies and services 142,263 33,899 176.162 Professional fees 607,797 41,973 649,770 Utilities 1,785 174,162 175347 Transfers of Trust 2,450,191 - 2,450,191 Other miscellaneous expenses 511,800 52.484 564384

$ 11,899,017 $ 649,596 $ 12,548,613

The costs of providing the various programs and otfa^ activities have been summarized on a functional basis in the Consolidated Statement of Activities. Accordingty, certain costs have been allocated among the programs and supporting services benefited.

-15-

UNTS^RSITY OF NEW ORLEANS FOtJNRATION


December31, 2013

(11) Related Party/Affiliate Transactions

The Foundation administers the financial assets and maintains the financial records of the UNO International Alumni Association, the Privateer Athletic Foundafion, and other entities affiliated with the University. Amounts held in custocty for otibers included in current liabilities amounted to $641,127 at December 31, 2013. This amount represents funds collected by tiie Foundation on behalf of these affiliates in excess of expenditures made on behalf of these affiliates.

hi the normal course of business, the Foundation reimburses tiie University for certain expenses as well as provides certain services to the University. Reimbursements paid to the University included in expenses in 2013 were $7,002,632. At December 31,2013, funds due to the University totaled $738,888.

Additionalty, the Foundation received salary support of $S46,612 for salary support from the University of New Orleans Research and Technology Foundation, Inc. (the **R&P' Foundation), an affiliated entity, for the months of January through Juty. Effective August 2013, the R&T Foundation began to incur the salary and benefit expenses directly.

Hie R&T Foimdation provides administrative support to the Foundation for an annual amount of $374,000. The Foundation also recorded $76,248 in subsidized expoises firom R&T which were passed through to the University in 2013. At December 31, 2013, funds due fiom R&T totaled $46,066, and funds due to R&T totaled $186,707.

During the year ended December 31, 2013 the R&T Foundation contributed property improvements to the Nims Center Complex totaling $1,542,265, the remainder of tiie fimds are allocstited to construction costs.

(12) Fair Value Measnrements

The Financial Accounting Standard Board ("FASB") authoritative guidance for fail value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The guidance also establishes a fhir value hierarchy which requires an entity to maximlTe the use of obsovable ii^uts when measuring fair value. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement Valuation techniques used need to mflvimiTf! the use of observable inputi and minimize the use of unobservable inputs. The three levels of the fair value hierarchy under the guidance are described below:

level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Foundation has tiie ability to access.

Level 2: Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs otiier tiian quoted prices that are observable for the asset or liability, • hiputs that are c^ved piincipalty fiom or corroborated Ity observable market data by

correlation or odier means.

-16-


Notes to CoQSolidated Financial Statements |

December 31, 2013

(12) Fair Value Measurements (continued)

If the asset or liability has ,a specified (contractual) term, the Level 2 input must be observable for substantially the full term of tiie asset or liability.

Level 3: Iz^>uts to the valuation methodology are unobservable and significant to the fair value measurement

Following is a description of the valuation methodologies used for assets measured at &ir value. The methods described may produce a &ir vahie calculation drnt may not be indicative of net realizable value or refl«:tive of future £tir values.

Domestic and intemationaJ fixed income instruments and corporate stocks: Valued at the closing price reported on tiie active market on t^ch the individual securities are traded.

Mutual fimds: Valued at the closing price reported on the active market on which tiie individual securities are traded or at the net asset value ("NAV^ of shares held at year end as appUcable.

REITs: Valued at the value of quoted prices for identical securities.

Oil and gas interests and land: Valued at the relative interest of the Foundation's share by independent appraisals of fair value at time of contribution.

Hedge fimds: Valued at the net asset value ("NAWO of shares held at year end.

Furthermore, while the Foundation believes its valuation methods are appropriate and consistrait with other maricet participants, the use of di^rent methodologies or assumptions to determine the teir value of certain financial instnunents could result in a different fair value measurement at tiie reporting date.

-17-

tfNTVERSrrY OF NEW ORLEANS FOUNDATION


December 31,2013

(12) Fair Value Measurements (contiiiaed)

The foliowing table sets fortii by level, widiin the feir value hierarchy, the Foundation's investment assets at fair value as of December 31, 2013. There have been no changes in the methodologies used at December 31,2013.

Level 1 Level 2 Level 3 Total Fixed income bonds $ - $ 9,424,244 $ - $ 9,424,244

Small cap stocks 2,588,581 - - 2,588,581

Targe cap stocks 8,685,923 - - 8,685,923 Mutual funds:

Small cap 7,164,032 - - 7,164,032 Mid cap 385,701 - - 385,701 Large cap 7,849,162 - 7,849,162 Ihtemational equity 8,686,677 - - 8,686,677 Commodities stocks 2,112.683 - - 2,112,683 MLPs 3.099,959 - - 3,099,959 Tactical 5,830,450 - - 5,830,450

RF.ITS 1,825,121 - - 1,825,121 Hedge fund of funds - - 6,029,087 6,029,087 Domestic fixed income 6,720,607 - 6,720,607 InUuiiational fixed income 1,043,144 - - 1.043,144

International stocks 2,303,194 - - 2,303,194 Oil and gas intoests - - 75,027 75,027

l^d - - 3,522,481 3,522,481

REITs - 1,000,213 - 1,000,213

As of December 31,2013, there were no assets measured at fair value on a nonrecurring basis.

-18-



December 31,2013

(12) Fair Valne Measorements (contixiued)

The table below sets forth a summary of changes in the fair value of the Level 3 assets for the year ended December 31,2013.

Hedge fund of funds

Oil and gas interests Land

Description Balance, beginmng of year

Purchases/contributions Unrealized gains

$ 5,104,052 $ 412,859 75,027

$ 3,522,481

512,176

Balance, end of year $ 6,029,087 $ 75,027 $ 3,522,481

The Foundation's investment in die hedge fund of funds, at December 31, 2013, represents .43% ownership of all ownership interests in the fund. The hedge fund invests in directional, relative value, and event-driven hedge fund managed accounts. The &ir value of the investments in this class has been estimated using die net asset value per share of the investments.

The following table represents the Foundation's level 3 financial instruments, the valuation techniques used to measure die fair value of diose financial instruments, and the significant unobseivable inputs and the ranges of values for those inputs.

Instrument Fair Value Principal Valuation Technique Unobservable

Inputs

Range of Significant Input

Values Hedge fund of funds $6,029,087 Independent valuation statements Practical expedient Not applicable

fiom respective hedge fimds Oil and gas interests $75,027 hidependent appraisals Not applicable Not applicable Land $3,522,481 hidependent appraisals Not applicable Not applicable

The following table summarizes investments measured at fair value based on net asset value (NAVs) per share.

Redemption Redemption Frequency Notice Period Ihstniment Fair Value

Unfunded Commitments

Hedge fund of funds $6,029,087 Not applicable Quarterly, with 90% pmd no later 95 days, pursuant than 30 days after with the remaining to a lockup balance paid after completion of the provision for 12 annual audit of die Maker Fund months

-19-



December 31,2013

(13) Endowment Net Assets

In accordance witfa die requirements established by the FASB for endowment funds, the Foundation has provided infonnatioo about the net assete of its endowment funds. The Foundation's Board of Directors (the Board) is of the belief that they have a strong fiduciary duty to manage the assets of the University of New Orleans' endowments in the most prudent maimer possible. The Board recognizes its responsibility to fulfill the donor's intent with respect to expenditures fit)m endowment. If this intent is clearly expressed by die donor, whether the intent is in a written gift instrument or not, the intent of the donor is followed. If die intent is not expressed, the Board ensures the assets of the endowment are spent in a prudent manner which considers the purpose of the fimd, current economic conditions and preservadon of the fund.

In accordance with the Foundation's policy, the FoundatioD spends armually up to 5% of die lat^ five year &ir market value average for Board of Regents matched endowments. The Foundation spends annually between 3% - 7% of the latest three year fair market value avera^ for general endowments.

The date used to determine the fair market value is December 31 of each calendar year. No amounts are spent fiom general endowment funds until the corpus of such endowment reaches S25,000 and these fUnds have been invested for a minimum of one year. The Board of Regents matched endowments do not receive spending allocations until the Board of Regents matches the private donation and the fimd is invested for a minimum of one year.

The goals and objectives of the Foundation's investment policy are to 1) provide investment earnings adequate to fulfill die desires of donors as stated in die gift instruments, 2) achieve a total return adequate to fund the spending rate phis corpus growdi to ^ure future benefits to later generations, and 3) invest in a variety of diversified categories so that die diversity of the performance charactoistics will reduce the volatility of returns fit>m year to year.

The strategies enqiloyed to achieve these objectives fcx* the Board of Regents matching endowment is to follow the Board of Regents guidelines on investiiig the funds. The general endowments follow a strategy of guidelines of asset benchmarits and setting Investment guidelines for allowed and prohibited investments and transactions.

-20-

tJNIVERSITY OF NEW OJRLEANS FOUNDATION


December 31, 2013

(13) Endowment Net Assets (contmned)

The amount invested for odiers in noncuirent liabilities at December 31, 2013 of $19,214,228 is not included in the table below. The composition of endowments by net asset class at December 31,2013 is:

Unrestricted -Board

Designated

Temporarily Permanently Restricted - Restricted -

Donor Donor Restricted Restricted Total

Endowment net assets, hftginning of year $

NIMS balance adjustment Investment income

4,682,126 $

74,520

10,837301 $ (318330) 1313,642

29.037,758 $ 44357,785 (318330)

1388,162

Net af^ireciation (depreciation), J>Oth p»inlT7RH fltirt inirp.fllT7P.H 391,425 3,732,675 (67,480) 4.056,620

Total 465^5 4,627387 (67,480) 5,026,452

Contrfliutions (1,000.000) 3,490,498 976.431 3.466329 Subtotal (534,055) 8,118,485 908351 8,493381

Program expenses Management ejqjcnses Other changes

(189,238) (78314)

(946,869) (543372)

(1,850.191) (601,699)

(1,136,107) (672386)

(2.451,890)

Endowment net assets, end of year $ 3,880,519 $ 15,615354 $ 29345,0i0 $ 48,840,883

From time to time, die &ir value of assets associated with individual donor-restricted endowment funds may fall below tine level die original donated amount, the corpus. In the event an endowment &lls below its corpus, the Foundation's unrestricted net assets are utilized to restore each oidowment to its corpus (supplement). As of December 31, 2013, the total fair market value of those endowments under dieir corpus increased by $367,802, reducing the Foundation's supplement to $273,820.

(14) Concentrations of Risk and Contingencies

Funds on deposits in financial institutioiis exceeded FDIC insurance limits by $4,763,935 at December 31, 2013. The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage up to $250,000 per financial institutioa as of December 31,2013; in die event of a &iture of the institution, the FDIC is not obli^ted to p^ uninsured deposits.

The Foundation is involved in certain claims and legal actions arising in the normal course of activities. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on die Foundation's financial positioa

-21-



December 31, 2013

(15) Subsequent Events

Management has evaluated subsequent events through the date that the consolidated financial statements were available to be issued, June 23, 2014, and determined that there were no subsequent events requirii^ disclosure, except as follows, hi April, 2014, the University of Mew Orleans Directors qiproved revisions to the UNO Investment Policy and the UNO Foundation Investment Spending Policy. These Changes are designed to provide for both preservation of capital and consistent spending. These policies are effective January 1,2014.

-22'-


Consolidating Statements

December 31,2013

CoQsolidating Statement of Financial Position 24-25

Consolidating Statement of Activities 26 - 27

-23-

UNTVERSITY OP NEW ORLEANS FOUNDATION

Consolidating Statement of Financial Position

As of December 31,2013

Current assets: Cash end cash equivalents Restricted assets:

Cash and cash equivalents Investments (Note 2,12, and 13) Unconditional promises to give, net

Accounts receivable Contributions receiv^le Grants receivable Notes receivable Deferred charges and prepaid expenses

UNOF

4,040,725 $

1,542,688 4,083,652 362,744 241,748 565,547 205,429 20,743 41,158

UNOFREC jmsm

Assets

UNOFRC Eliminating

Entries

509,808 $ 500 $ 500 $

Consolldflted TQtftl

4,551,533

1,542,688 4,083,652 362,744 241,748 565,547 205,429 20,743 41.158

Total current assets 11.104,434 509,808 500 500 - 11,615.242

Noncurrent assets: Restricted assets;

Investments Unconditional promises to give, net

Investment in subsidiaries Real estate, net Property and equipment, net Other noncurrent assets

70,665,126 64,750

1,500 12,121,223

38,722 108,523

3,522,481 47,637 27,390

(1>500)

74,262,634 64,750

12,121,223 38,722

108,523

Total noncurrent assets 82,999,844 3.522,481 47,637 27,390 (1,500) 86,595,852

Total assets $ 94,104,278 $ 4,032,289 $ 48,137 $ 27,890 $ (1,500) $ ' 98,211,094

(continued)

-24-


Consolidadsg Statemeot of Financial Position

As of December 31,2013

UNOF TJNOFREC UNOFWI TJNOFRC EliminatioB

Entries ConsoHdated

Total

Current liabilities: Accounts payable and accrued liabilities $ Amotmts held in custody for others Current portion of bonds payable Transfer of Trust Other current liabilities - due to University

2,229,536 $ 641,127 170,000

4,083,652 738,888

Liabilities and Net Assets

- $ - $ - $ - $ 2,229,536 641,127 170,000

4,083,652 738,888

Total current liabilities 7,863,203 . 7,863,203

Noncurrent liabilities: Amounts invested for others Bonds payable, net of current portion

19,214,228 367,000

- - - - 19,214,228 367,000

Total noncurrent liabilities 19,581,228 19.581,228

Total liabilities 27.444,431 . . . • 27,444,431

Net assets: Unrestricted Temporarily restricted Permanently restricted

12,889,565 24,425,272 29,345,010

4,032,289 48,137 27,890 (3.500} "16.996,381 24,425,272 29,345,010

Total net assets 66,659.847 4,032,289 48,137 27,890 (1.500) 70,766,663

Total liabilities and net assets S 94,104,278 $ 4,032,289 $ 48,137 $ 27,890 S (1,500) $ 98,211,094

See occon^anying independent auditors' report

-25-

(concluded)

UNIVERSITY OF NEW ORLEANS FOUNDATION ConsolidatiQg Statement of Activities


CauDges in unrestricted set essets: Unrestricted revenue and support

Conlributioiu ContributioQ of property inqirovementa Grants Investment income Sovicefees Service fees - R&T Foundatioa Gain on sale of asset Otba income

Total unrestricted revenue and st^ort before net assets released from restrictions

Net assets released from restrictions/transfers: Net assets released fiom restrictlans Transfers

Total unrestricted revenue and siqiport

B:i9enses; Program operations Property operations

Total program eq)eose3

Suppurliug services Salaries and benefits Dues end subsoiptians Meetings. Travel Ofifice operations Professional services Dqnedation and amortization Donation of property Other

Total st^ortiog sovices Total e7q>enses Change in unrestrirted net assets

imi

271,264 1,542,265 1,242,013 1,141,832

757,905 546,612

1.858,294

546,612 40,287 40,952 2,669

51,668 543,415 364,412 879,341 32,983

2,502,339 15.050.952

(493.835)

UNOFREC

4,032,289 $

imsm UNOFRC Eliminating

Entries

48,137 $ 27,890 $ (1,500) $

4.032,289 48.137 27.890 (1.500)

Coruolidated Total

4,378.080 1,542,265 1,242,013 1.141.832

757,905 546.612

1,858,294

8J56.618 4.032089 48,137 27,890 (1.500) 12.463.434

6,200.699 (200)

• - - 6000,699 aoo)

14.557.117 4.032O89 48.137 27.890 (1,500) 18,663.933

11,899,017 649.596

- • • • 11,899,017 649.596

12.548.613 . 12.548.613

546,612 40,287 40,952 2,669

51,668 543,415 364,412 879,341 32,983

2.502.339 15.050.952 3,612,981

(contiiLued)

• 26.

UmVERSITY OF NEW ORLEANS FOUNDATION

ConsoUdatiDg Statemoit of Activities


UNOF UNOFREC uNom UNOFRC EllralnatintF

Entries Consolidated

Total

Changes m temporarity restricted net assets; Restricted revenue and sqipoit

Contributions Service fees Investment income Other meome

2,737,863 174.907

4,786,980 6.000

• - • 2,737,863 174,907

4,786,980 6.000

Total teoyioraiily restricted revenue and support before net assets released from restrictionsAraasfois 7.703.750 7.703.750

Net assets released from restrictions/transfers; Net assets released from restrictions TVansfots

(6.200.699) 601.400

- - • (6,200,699) 601,400

Change in tenqtorarily restricted net assets 2.106.451 2.106.451

rhimgp^ in piwiftnmtty nrt Contributions Investmenl tncome Servicsefees

762,831 18,545 7.075

- -• 762.831

18,545 7,075

Total permanently restricted revenue and soppoit before net assets released from transfers • 788.451 788.451

Net assets released fiom transfers Transfers (601.200) ceouoo)

Change in permanendy restricted net assets 187.251 187.231

Change in net assets Net assets, at beginning of year

1,799.867 4,032,289 64,859,980

48,137 27,890 (1,500) 5,906,683 64.859.980

Net assets, at end of year $ 66.659.847 S 4.032,289 $ 48.137 S 27,890 S a.500) $ 70.766,663

(concluded)

See accon^anying independent audhon' report

• 27-


Supplemental Schedules

December 31, 2013

Schedule 1 —Privateer Athletic FoundatioD -Rje^nue, Support, and Expenses 29

Schedule 2 —University of New Orleans Jhtemational Alumni Association — Revenue, Support, and Expenses 30

Schedule 3 - National Collegiate Athletic Association - Revenue, Support, Expenses, and Capitalized Expenditures Made to or on Behalf of the University's Intercollegiate Atiiletics Program 31

-28-

UNXVERSmr OF NEW OIULEANS FOUNDATION

Supplemental Schedule 1 - Privateer Athletic Foundation

Schedule of Revenue, Support, and Expenses


Revenue and support Program revenues Contributions and bequests

Total revenue and support

Expenses Program siq)port General and administrative

Total expenses

Excess of revenues over expenses

See accompanying independent auditors' report.

4,990 184,837 189,827

164,962 5,221

170,183

19,644

-29-

UNIVERSmr OF NEW ORLEANS FOUNDATION

Supplemental Schedule 2 - University of New Orleans lateinational Alunmi Association

Schedule of Revenue, Support, and Expenses


Revenue and support Program revenues UNOF contribution siqrport Contributions and bequests


53,666 208,472 61,231

323,369

Expenses Program support

Total e}q)enses 260,722 260,722

Excess of revenues over e}q>enses 62,647

See accompanying independent auditors' report

-30-


Supplemental Schedule 3 - National Collegiate Athletic Association Schedule of Revenue, Support, Expenses, and Capitalized Expenditures

Made to or on Behalf of the University's Intercollegiate Athletics Program


Revenue and support Contributions, net of management fee Endowment spending allocation


18,516 191,209 209,725

£;q}eo5es Program expenses

Total expenses 3,670,494 3,670,494

Excess of revenues over expenses $ (3,460,769)

C^italized expenditures


-31-

UOTVERSITY OF NEW ORLEANS FOUNDATION

Supplemental Schedules GASB Schedules*

December 31, 2013

Schedule Schedule Title Paee Number 1 Statement of Net Position 33 2 Statement of Revenues, Expenses, and Change in

Net Position 34 3 Simnlified Statement of Activities 35 4 Statement of Cash Flows 36 5 Note A-15 Discretely Presented Component

Units 37 6 Note C.l Deoosits with Financial Institutions 38 7 Note E Canital Assets 39 8 Note I Lone Term liabilities 40 9 Note N Related Partv Transactions 41 10 Note P Leases-Caoital Leases 42 14 Schedule 1-A Schedule of Bonds Pavable 43 15 Schedule 1-B Schedule of Contracts Pavable 44 16 Schedule 1-C Schedule of Notes Payable 45 17 Schedule 2-A Schedule of Long-term Debt

Amortization 46

18 Schedule 2-B Schedule of Notes Payable Amortization

47

19 Schedule 2-C Schedule of Canital Lease 48 20 Schedule 2-D Schedule of Reimbursement 49 21 Schedule 4 Schedule ofExnenses 50

* GASB schedules in format prescribed by the Foundation.

-32-

UNIVERSITY OF LOUISIANA SYSTEM STATEMENT OF NET POSITION

FOR THE YEAR ENDED JUNE 30,2014 .

Univenlty-Total ASSETS

Current Assets Cash and cash eqidvalents Investments Dcftrred outflow of resources Receivables, net Pledges receiveble Due from othCT campuses Due from State lYeasuiy Due from Federal Government Inventories Defared char^ and prepaid expenses Notes receivable

Total current assets

Noncnmnt Assets Restricted aasels:

Investments Fledges receivable Capital assets, net Oibernoncutrail assets

Total Doncurrent assets Total assets

UNO PoBodatloo

6.094,221 4.083.652

*ElimtnatiODS

401,111 928,291

46.066

41,158 20,743

11,615,242

74,262,634 64,750

12.159,945 108423

86495.852 98,211.094

GASB-TOIBI

$ 6.094,221 4,083,652

401,111 928491 46,066

41,158 20,743

11,615442

74462,634 64,750

12.159445 108423

86495.852 S 98411.094

DEFERRED OUTFLOWS Other deferred outflows

Total deferred outflows

LIABILITTES

Note: Blank lines deliberately left in documenL See accompanying iadqmdent auditors' rqxut

Cnrrent Liabilitiea Accounts payable and accrued liabilities $ t 2,042,829 S S 2,042,829 Due to other campuses Due to State Treasury Due to Federal Government

925495 925495

Deftned revenues - -Amounts held m custody for others

Cuncot portion of Noncurrent i Jnhiirtiix 641,127 641,127

Bonds payable 170,000 170.000 Oflier cunetit liabilities 4,083,652 4,083,652

Total current liabilities 7.863403 7.863403 Long-term Portion of Noncurrent Uabilitia

Bonds payaUe Amounts held in custody for otfaen

367,000 19414428

367,000

Total noncurrent liabilities 19481428 19481428 Total liabilities 27,444,431 27.444.431

DEFERRED INFLOWS Other defbverl inflows . .

Total deferred inflows • - • -

NET ASSETS Invested in coital assets, net of relnted debt Restricted for

11,622445 11,622,945

Nonexpendable 29445.010 29445,010 Expendable

Unrestricted 24,425472 5473,436

24,425472 5473,436

Total Net Assets 70,766,663 70,766.663 Total liabQIlies aod net assets S S 98411.094 S 98411.094

-33-

UNIVERSITY OF LOUISIANA SVCTEM STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

FOR THE YEAR ENDED JUNE 30,2014

UNO Foundation *EUmmations GASB-Total OPERATING REVENUES

Student tuition and fees S - $ - $ *Less scholarship allowances - -

Net student tuition and fees - -Gifts received by the foundations 7,878,774 7,878,774 Nongovernmental grants and contracts 1,242,013 1,242,013

Net auxiliary rev enure - -Otho* opoBting revenues 2,488.932 2,488,932

Total operating revenues 11,609,719 11,609,719

OPERATING EXPENSES Educational and general

Depreciation 362,183 362,183 Other opoating expenses 7,649,025 7,649,025

Total operating expenses 8,011,208 8,011,208 Operating inconie Ooss) 3.598,511 3,598,511

NONOFERATING REVENUES AND (EXPENSES) Net investmrat income Ooss) 5,947,357 5,947,357 Interest expense (37,112) (37.112) Payments to or on behalf of the imivershy (7,002,632) (7,002,632)

Net nonoperating revenues (expenses) (1,092,387) (1,092387) Income before other revenues, e?q>enses. gains, and losses 2,506,124 2,506,124

Capital ^fts and grants 1,542,265 1,542,265 Other additions, net 1,858,294 1,858,294 Transfer (to)/from other syston institution

Increase (decrease) in net assets 5,906,683 5,906,683

Net assets at be^nning of year, as restated 64,859,980 64,859,980 Net assets at end of year $ 70,766,663 $ - $ 70,766,663

Note: Blank lines deliboately left in document See accompanying independent auditors' report

-34-

UNIVERSITY OF LOUISIANA SYSTEM SIMPLIFIED STATEMENT OF ACTIVmES

FOR THE YEAR ENDED JUNE 30,2014

Program Revenues Net (Expense)

* (-) Expenses

Charges for Services

Operating Grants and

Contributions

Capital Grants and

Contributions

Revenue and Changes In Net Assets

College or University S - $ $ S - S

Component Units (15,013,840) 11.609.719 1,542,265 (1.861.856)

* Eliminations

Combined Total (15,013.840) . 11.609,719 1.542,265 (1.861.856)

General revenues: State appropriations Grants and contributions not restricted to specific programs Interest Miscellaneous

Special items Extraordinary item • loss on impairment of capital assets Transfers

Total general revenues, special irons, and tronsfm Change in net assets

Net assets - beginning Net assets • ending

* Enter in spreadsheet as a negative number. Note: Blank lines deUberatcly left in document. See accompanying independent auditors' report.

Component Units

(37.112) 7.805,651

7.768,539 5,906.683

(•) ' Eliminations

70,766.663 $

Combined Iota)

(37.112) 7.805,651

7.768.539 S.906.683

64,859,980 70,766.663

-35-

UNIVERSITY OF LOUISIANA SYSTEM STATEMENT OF CASH FLOWS

FOR YEAR ENDED JUNE 30,2014

Cash flows from operating acfiviiies Granls and contracts P^menls fin employee compepsatjon Payments for benefits Payments for Payments for st^plies ai^ services Paymmts for scholarships ""d fofiowships Othcricce^

Net cash used by q>erating activities

Cash flows from oon-capttal financing activities State appropriatiDns Gifts and gnwitR fijr othcf Capital purposes

Net cash provided by noncapital financmg sources

Cash flows from capital financing activities Purchase of capital assets Princ^ paid on cqrital debt and leases Interest pj"d on mpitai debt and leases Other sources-endowed ccmtiibulions

Net cash osed by capital finanettig activities

Cash flows lh»m investing activities Proceeds fican sales of real estate, property, and equtpmoit Sales of investmeQls for ofocra - net Purchase of mmtments, net

Nd rash used cq)ital investmg activities

Net decrease in cash and cash equtvalents

Cash and cadt equhraknts at b^jmnng of the year

Cash and cash equvaleats at the end of the year

Reconciliation of Net Operating Revenncs to Net Cash Used by Operating Activities

Af^wfmonm to yneoniale nrf tnt-iome tO Oet cash used by operating activities: Depreciation and amoitization expense Less nonoperatnig revenues CcBitributioas of property and eqnqnneat Gain on sale of asset Conlnblltian of piupsty mummwnoTrtft Donation of property Resized gain ffii investmoils Unreahzed gaia on investmeais Restricted long tens coilributiaDS pledged Recovery of bad debt expense Changes in assets and liabih'iies:

Deoease in accounts lecdvable, net Decrease in other assms Inoease in accounts payable and accmed habflities

Net cash used by operatiiig Bctivittes:

Rcconcfliation of Cash & Cash Eqeivalenta to flie SNA

Pngh wnH cash eqoivalcDls dassified as "TT*^ assets Hftch wnit cash ftpttvulwits cliicgifiwt nc nonwTrrwtt assrts

Total cash and cash equtvalents See acccnxqianying independent auditors' rqxut

1,226.027 (462,304) (84,30^

(154,479) (6,673,954) (7,002,632) 4,692,820

(8.458.830)

11.406.316 11,406.316

(1350,275) (636,441)

(37,112) 620.360

(1.403.468)

3325.000 5,025,866

(10309.622) (2.058,756)

£14^

6.608359

$ 6.094321

$ 5306,683

364,412 (11,369304)

(1,858394) (1,542365)

879341 (2341,871) (2,346,447)

(174,100) (98,677)

3351,164 12348

357.480 (8,458,830)

4,551333 1342.688

$ 6.094,221

-36-

Hole A. ISDiscietBlyPiesaitedCoinpoacnt Units FYE June 30,2014

DescriptioB:

The Unncn^ of New Oikaiis poundaliDa is a Eegal^ sepante, (ax-exempt OTSanizatioii smyoiting the Univeisity of >few Orleans.

The Univeni^ of New Orleans Foundatiai is a "ftnpmfit prpmiation that reports under FmanciaTAcconntzi^ Staodardr Boaid ffA5B) elandanfa, iacluding FASB Acconnliiig Slaadaitfa rinlififah'tm } 951^ )^-for^roflt Entihes. As such, certain levcnuc recogoitian criteria and presentation features an diflertst from GASB revenue reeognition criteria and pRscDtation fiatures. Whhthe exception of necessary presentation ar^nstzrusnts, no "''vtifK**'''"* have been wimit' {Q thn FoimdaticBi's Snanmal in the Univerii^'s finanra'al report fir these dtfiereptts.

Dating the year aafcd Decembo 31,2013, Are Umvoa^ of New Odcans POandation made distribntjaa of y?.002.632 to or on brinlfoftheUBtveoi^ofNew Orleans fiv both restricted and mrrestricted purposes.

Cempleta fiBanoal smtements fw the (Auvcm'tyofNew^ieaniBeseardi and Technology Fbnndalioa can be obtained 6«n:

2000 Lakeshnre Drive. NgwOrleans. Lonisiaia 70148 (mafling sddress)

accon^^B^Qnng nrdepcndcnt aodttm^ rcpo^L

-37-

University of New Orleans Foundation June 30, 2014

Book balance Bank balance Petty cash Demand deposits $ 1,144,118 $ 1,193,129 Money market funds 3,407,415 3,407,415 Short-term investments 1,542,688 1,542,688

Total-UNO Foundation $ 6,094,221 $ 6,143,232


-38-

UNO Foundation • Discrete (schedule Includes capital leases)

Balance 12/31/2012

Prior Period Restated Balance 12/31/2012 Additions *Transfcrs ••Retirements

Balance 12^1/2013

Capital Asset Summary: Capital assets not being depreciated S 2^.681 $ 2.224.681 S 2,862,278

• Should be used only for those completed projects coming out of construction-in-progress to fixed assets. •* Pnter a negative number with fiie exception of accumulated depreciation in foe retiremeat and prior period adjustment columiL

See accompai^g independent eudifors' report

Coital assets not being depreciated Land $ 1,763,171 S S 1,763,171 S s S (495,735) 5 1,267,436

Non-depreciable land improvements - - • - -Non-depreclable easements - - - - • Capitalized collections - • - - - -Livestock - - - - -Software^evelopmeat in progress - - - -Construction in progress 461.510 461,510 2.862,278 - 3,323,788

Total capital assets not being depreciated S 2,224,681 $ s 2,224,681 S 2,862.278 $ (495,735) $ 4,591,224

Other c^iital assets Buildings 5 12,172,810 s s 12,172,810 $ 28,035 $ $ (1,998,067) S 10,202,778 ** Less accumulated depreclatioa f2.588.337) (2,588.337) (332,198) 247,756 (2,672,779)

Total buildings 9,584,473 9,584,473 (304,163) (1,750,311) 7,529,999

Equipment 30,544 30,544 - - 30,544 Furniture 647,766 647,766 - (291,758) 356,008

Vehicles 20,757 20,757 - (20,757) • •• Less accumulated depreciation (630.357) C3) (630.360) (29.985) 312,515 (347.830)

Total equipment 68,710 (3) 68,707 (29,985) • 38,722

Total other capital assets S 9.653.183 s (3) $ 9,653,180 s (334.148) $ (1,750,311) s 7,568,721

$ (495,735) ' S 4,591,224

Total cost of capital assets 15,096,558 - 15,096,558 2,890,313 (2,806,317) 15,180,554 Less accumulated depreciafion/emoitizalioo (3.218.694) (3) (3,218,697) (362,183) 560.271 (3,020,609)

Capital assets, net S 11.877.864 S (3) $ 11,877,861 S 2,528.130 $ (2,246.046) $ 12,159.945

-39-

WoteL LonyTerm [fabtlltica

CompoDent Units

Notes & bonds payable: Notes payable Bonds payable

Total bends and ncTtcs payable Otbcr liabQltlea:

Compensated absences payable Cqittal lease obllgatians Claims and Utigation payable Pollutioa remediation obligations Amounts held in Contracts payable Reimbursaaent contracts payable OPEB payable Other noncuTTcnt liabilities Total other liabilities

Total long-term liabilities

Combined Total

Notes & bonds payable: Notes p^nble Bonds payable

Total bonds and notes payable Other liabilities:

Compasated absenceg p^nble Cqntal lease obligations Claims and lidgaticn payable PoUntiOQ remediatiim obligatiaDS Amounts held in custody Contracts payable Rgjinbursaneat Contracts Payable OPEBp^^e Other noncmient liabilities Total other liabilitzes

Total lang-tenn liabilities

Balance Jane 30>m3 Adjustments

S $ 698.000 698,000

475.441

18.272.014

19.445.455 S

Balance June 30,2013

(Restated)

698.000 698.000

475.441

ISmOH

19.445.455 S

Note; Blank lines deliberately left In documrat. See accon^anylng bidq>endeat auditors' report

Adjuatments

Jane 30,2013 (Restated)

698.000 698.000

475.441

Balance Jane 30,2013

(Restated)

698.000 698.000

475.441

18.272.014

_19j«5^^$

Additloas Reductions

161.000 161.000

942.214

942.214 3

Additions

942.214

942.214 i

475.441

636,441 $

Reduetlons

161.000 161.000

475.441

636,441 S

June 30, 2014

537.000 537.000

19.214.228

19.751,228 $

Balance at Jane 30,

2014

537.000 537.000

19.214.228

19.751328 $

due withio one year

170.000 170.000

170.000

Amounts due within one year

170.000 170.000

170.000

-40-

Note N. Related Party Transactions

List all related party transactions below.

Name of Individual PesCTibe Related Party Transaction

Amounts Due to/ Due from Dollar amount that resulted related of Transaction party transaction

^ University-affiliated entities (UNO Intemational Alumni Association, the Privateer Adiletic Foundation)

2 University of New Orleans

3 UNO Research and Technology Foundation (R&T)

4 UNO Research and Technology Foundation (R&T)

5 UNO Research and Technology Foundation (R&T) 6 UNO Research and Technology Foundation CR&T)

See accompanying ind^iendeait auditors' report

The Foundation coll^ funds on behalf of these affiliates in excess of expenditures made on behalf of these affiliates

The Foundation reimburses the University for certain expenses as well as provides certain services to the University 7,002,632 R&T provides salaty supports for the Foundation for the months of January through July 2013 558,042 R&T provides administrative support to the Foundation 374,000 Subsidized expenses received from R&T through UNO 76,248 R&T contributed property Improvements to the Foundation's film facility 1,542,265

(641,127)

(738,888)

(140,641)

-41-

Leases-Capital Leases

UNO Foundatioo

COVfPENT UNIT CAPITAL LEASES Gross Ranaining Remammg

nmminf of Last uilPtst to principal to Date of leased assets paymeat end of end of

Watim. leasc fliistorical cost^ date lease tose

a. Oftice space S • : b. Buildings - _________ " ; cEqnipmeat 04/01/00 963388 02/15/13 ; dLand - • : e.Otha - ' • • Total assets under cap. lease $ 963388

Note: Blank lines deUbentely left in documenL See Bcctanpazgrmg independent anditas' iqxHt

• 42-

Univenlty of LooisUna System University of New Orleana-CU

SCHEDULE OF BONDS PAYABLE 6/30/2014***

Issue

University of New Orleans UNO Foundation Film Studio Bonds

Total

Date of Issue

8/01/2001

Orignal Issue

2,000,000

Principal Outstanding

June 30.2013

698,000

698.000

(Redeemed) Issued


June 30.2014

$ (161,000) $ 537,000

$ (161,000) $ 537,000

Maturities (Year)

2016

Interest Rates

2.09%

Interest Outstanding

June 30,2014

$ 22,855

22,855

*** UNO Foundation fiscal year ended December 31,2013

Note: Blank lines deliberately left in document See accompanying indqiendent auditors' report

SCHEDULE 1-A

43-

STATE OF LOUISIANA SCHEDULE LB

Uaivenity of Loalslaiia System (Component Units)

SCHEDULE OF REIMBURSEMENT CONTRACTS PAYABLE Jane 30,2014

Princ^al Principal Interest Date of Original Outstanding bsued Outstanding Interest Outstanding

Issoo Issue Issue June 30.2013 June 30.2014 Maturities Rates June30.2014

N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total $0 ==l=e=E=i

Note: Blank lines deliberately left in document See accompanying independent auditors' report

-44.

STATE OF LOUISIANA SCHEDULE 1-C (Component Unit)

University of Lonisiana System-Component Units

SCHEDULE OF NOTES PAYABLE June 30,2014***

Issue Date of

Issue Original

Issue


June 30.2013 Issued

(Redeemed)


June 30,2014 Maturities biterest

Rates

Interest Outstanding

June 30,2014

University of New Orleans Foundation

N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total $0 SO SO SO SO

•••As ofDecember31,2013 Note: Blank lines deliberately left in document. See accompanying independent auditors' report

-45-

STATE OF LOUISIANA UNIVERSTIY OF NEW ORLEANS

UNO Foandation SCHEDULE OF LONG TERM DEBT AMORTIZATION

SCHEDULE 2-A

For die Year Ended June 30-2014

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Principal Interest Amortization $ 170,000 $ 11,239 $ 179,000 $ 7,681 $ 188,000 S 3,935

Unamortized Premium/Discount

$ 537,000 $ 22,855 Note: Blank lines deliberate^ leit in document See accompanying independent anditors' report.

-46-

STATE OF LOUISIANA UmVERSITY OF LOUISIANA SYSTEM

SCHEDULE 2-B SCHEDULE OF NOTES PAYABLE AMORnZATlON

For the Year Ended June 30,2014

Principal Interest

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Note: Blank lines deliberately left in document See accompanying independent auditors' report

-47-

STATE OF LOUISIANA UNIVERSITY OF LOUISIANA SYSTEM

SCHEDULE 2-C Component Units

SCHEDULE OF CAPITAL LEASE AMORTIZAnON For the Year Ended June 30,2014

Fiscal Year Beginning FnHing: Balance Payment Interest ' Principal Balance

2015 $ - $ ^ 2016 - L_ 2017 - - ^ ^ 2018 -

2019-2023 - ^ ^ 2024-2028 - . - .

TOTAL

Note: Blank lines deliberately left in document. See accompanying independent auditors' report

-48-

STATE OF LOUISIANA UNIVERSnr OF LOUISIANA SYSTEM

SCHEDULE 2-D SCHEDULE OF REIMBURSEMENT CONTRACTS PAYABLE AMORTCATION


UNDP Principal Inlaest

2015

2016

2017 2018

2019

2020

2021

2022

2023 2024

2025

2026

2027

2028

2029 2030

Note: Blank lines deliberately left in document See accompanying independent auditozs' report

-49-

STATE OF LOUISIANA UNIVERSITY OF LOUISIANA SYSTEM

SCHEDULE4 SCHEDULE OF EXPENSES BY UNIVERSnY


Name of individual university OperatiDg Component and agen^ no.; Expenses Units Elnntnations Total

UNO Foundation - S (8.011,208) ^ $(8,011,208)

The "Total E}q>enses" should agree to the "Combmed Total" expenses shown in the Stmt of Activities.


-50-


Single Audit Report

December 31,2013

Postlethwaite MSsMM &Netterville

A ProFMStonol Accounting Corporotion

www.pnq)a.com


Single Audit Report

December 31, 2013


December 31,2013

Table of Contents

Page

Independent Auditors* Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1-2

Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by 0MB Circular A-133 3-5

Schedule of Expenditures of Federal Awards 6

Notes to the Schedule of Expenditures of Federal Awards 7

Schedules of Findings and Questioned Costs: Schedule 1 - Summary of the Independent Auditors' Results 8 Schedule 2 - Financial Statement Findings 9 Schedule 3 - Federal Award Findings 9

Schedule of Prior Year Findings and Questioned Costs 10

Postlethwaite StNetterville

A ProfwitoMl AeeounHng Corporallon AwockilBd OfHeu in Principal QHu oi lh« United Stole*

www.pncpo.com

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERmfENTA UDITING STANDARDS

To the Board of Directors University of New Orleans Foundation New Orleans^ Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of die United States, the financial statements of the University of New Orleans Foundation (a nonprofit organization) (the Foimdation), which comprise the statement of financial positions as of December 31,2013, and the relat^ statements of activities and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 23,2014.

Internal Control Over Financial Reportine

In planning and performing our audit of the financial statements, we considered the Foundation's internal control over financial reporting (internal control) to determine the audit procedures that are sqjpropiiate in the circumstances for tiie purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effe^veness of the Foundation's internal control. Accordingly, we do not express an opinion on the efTectiveness of the Foundation's internal control

A deficiency in internal control exists when the design or operation of a control does not allow management or emplo3^s, in the normal course of performing their assigned fimctions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Foundation's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a (combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did net identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

1

30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel: 800.201.7332 • One Galleria Blvd., Suite 2100 • Metairie, LA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609

CompJiance and Other Matters

As part of obtaining reasonable assurance about whether the Foundation's financial statements are &ee of •material misstatemefit^, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant' agreements, noncompliance with which could have a direct and material effect on the [detemiiiiation of fibanciaJ' statement amounts. However, providing an opinion on compliance with those iprovlsions was not aaiobjectrve of our audit, and accordingly, we do not express such an opinion. The results of ourdests.disciose^'no instances of noncompliance or other matters that are required to be reported under Government A uditing^Standards.

Purpose of this Reix>rt

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of ffiat testing, and not to provide an opinion on the effectiveness of the organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization's intonal control and compliance. Accordingly, diis communication is not suitable for any other purpose.

June 23,2014 Metairie, Louisiana

Postlethwaite & Netterville

A ProhuloAd Accounting Corporatlan AiMclotod OffkM in Prtnclpd Cillw of iho Uniiad ShilM

www.pncpa.com

Independeat Aaditors* Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133

To the Board of Directors University of New Orleans Foundation New Orleans, Louisiana

Report on Compliance for Each Major Federal Program

We have audited die compliance of University of New Orleans Foundation (die Foundation) with the types of compliance requirements described in the OMB Circular A-J33 Compliance Supplement that could have a direct and material effect on its major federal pro^am for the year ended December 31, 2013. The Foundation's major federal program is idraitified in the Summary of Independent Auditors* results section of the accompanying Schedule of Findings and Questioned Costs.

Management's Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditors' Responsibility

Our responsiblH^. is to express an opinion on compliance for the Foundation's major federal program based on -OMT audit of idie types of compliance requirements referred to above. We conducted our audit of compliance in accoidance with auditing standards generally accepted in the United States of America; die

' ^ ' u to financial audits contained in Government Auditing Standards^ issued the of the United States; and OMB Circular A-133, Audits of States, Local Governments

and.Noji-Frofit OrgmizaHons. Those standards and OMB Circular A-133 require that we plan and perform the laiidit to obtam. reasonable assurance about whethCT noncompliance with the types of compliance roqiurementSj reten-edi to above that could have a direct and material effect on a major federal progr^ occurred. .An.audit includes examining, on a test basis, evidence about the Foundatioa's compliance with those requirements and perfbnning such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the Foundation's compliance.

Opinion on Each My or Federal Program

In our opinion, the Foundation conqilied, all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the yees ended December 31,2013.

30th Floor - Energy Centre • 1100 Poydras Street • New Orleans, LA 70163-3000 • Tel; 800.201.7332 One Galleria Blvd.. Suite 2100 • Metairie, lA 70001 • Tel: 504.837.5990 • Fax: 504.834.3609

Report on Internal Control Over Compliance

Managemeat of the Foundatioa is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Foundation's internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are ^propriate in the circumstances for the purpose of e?q)ressing an opinion on compliance for each major fedei^ program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Foundation's internal control over compliance.

A deficiency in iniemal control over compliance exists when Ae design or operation of a control over compliance does not allow management or employees, in Ae normal course of performing Aeir assigned functions, to prevent, or detect and correct, noncompliance wiA a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that Aere is a reasonable possibility that a material noncompliance wiA a type of. compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance wiA a type of compliance requirement of a federal program that is less severe Aan a material weakness in internal control over compliance, yet important enou^ to merit attention by Aose charged wiA governance.

Our consideration of internal control over financial reporting was for Ae limited purpose describe in Ae first paragraph of this section and was not designed to identify all deficiencies in intranal control over compliance' that might be material weaknesses deficiencies or significant deficiencies. We Ad not identify any deficiencies in intp.mfll control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe Ae scope of our testing of internal control over compliance and Ae results of that testing based on Ae requirements of OMB Circular A-133. Accordingly, this report is not suitable for any oAer purpose.

Schedule of Expenditures of Federal Awards

We have audited the consolidated financial statements of the Foundation as of and for the year ended December 31,2013, and have issued our report thereon dated June 23,2014. Our audit was performed for the purpose of fonning an opinion on die financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as requii^ by 0MB Circular A-133, and is not a required part of the financial statements. Such information is the responsibility of

was derived from and related directly to the underlying accoimting and other records us^ to . The information has been subjected to the auditing procedures applied in the

ll statements and certain additional procedures, including comparing and reconciling such [pto the underlying accounting and other records used to prepare the financial statements or

diemselves, and other additional procedures in accordance with auditing standards in the United States of America. In our opinion, the schedule of expenditures of federal

awards is fairly stated(m all material respects in relation to the financial statements taken as a whole.

to

June 23,2014 Metairie, Louisiana


Schedule of Expenditures of Federal Awards


Federal CFDA Pass-Through Federal Federal Grantor/Program Name or Otiier Number Entity's Number Expenditures

U.S. Department of Commerce

Direct Awards Economic Adjustment Assistance -

Film Production Facilities Expansion 11.307 N/A $ 1>242,013

Total U.S. Department of Commerce 1,242,013

Total Expenditures of Federal Awards $ 1,242,013

See accompanying notes to schedule of expenditures of federal awards.


Notes to Schedule of Expenditures of Federal Awards

December 31, 2013

(1) Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the University of New Orleans Foundation (the Foundation) under programs of the federal govenunent for the year ended December 31, 2013. The information in this Schedule is presented in accordance with the requirements of 0MB Circular A--133, Audits of States, Local Governments, and Non-Profit Organizations. Because the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, changes in net assete, or cash flows of the Foundation.

(2) Summary of Significant Accoontlng Policies

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 0MB Circular A>122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation o^ the basic financial statements.

(3) Sub-recipients

During tee year ended December 31, 2013, federal e}q}enditures presented in the Schedule were disbursed to various sub-recipients as follows:

(JFDA Number Program Name Amount Provided to Sub-recipients

11.307 . Economic Adjustment Assistance $1,242,013

(4) Relatiopship to Federal Financial Reports

Amounts reported in the Schedule agree with tee amounts reported in tee related federal financial reports, except for the amounts in reports submitted as of a date subsequent to December 31,2013.


Schedule of Findings and Questioned Costs Summary of the Independent Auditors' Results

For the Year Ended December 31,2013

SCHEDULE I - Summary of the Independent Auditors' Results

1. Type of report issued on the financial statements. Unmodified Opinion

2. Did the audit disclose any material weaknesses in internal control over financial reporting? ̂

3. Did the audit disclose any significant deficiencies in internal control over financial reporting? No

4. Did the audit disclose any noncompliance which is material to the financial statements of the organization? ̂ |

'}

5. Did the audit disclose anv material weaknesses in internal control over major Federal programs? No ! ( t

6. Did the audit disclose anv significant deficiencies in internal control over major programs? No

7. Tvpe of report issued on compliance for major programs. Unmodified I 'i

8. Did the audit disclose any audit findings which the independent auditor is required to report under | OMB Circular A-133, Section 510(a)?No j

9. The following is an identification of major programs: i

Name of I CFDA Number Federal Program r

11.307 Economic Adjustment Assistance

10. The dollar threshold used to distinguish between Type A and Type B Programs, as described in OMB Circular A-133, Section 520(b) was $300.000.

11. Did the auditee qualify as a low risk auditee under OMB Circular A-133, Section 530? Yes


Schedule of Findings and Questioned Costs Summaiy of the Independent Auditors' Results

For the Year Ended December 31,2013

SCHEDULE n - Financial Statement Findings

None noted.

SCHEDULE HI - Federal Awards Findings

None noted.

r UNIVERSITY OF NEW ORJLEANS FOUNDATION

Schedule of Prior Year Findings and Questioned Costs For the Year Ended December 31,2013

None noted.

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