An illustrated guide to the annual financial report
The resources held by CU are called assets. Before we look at specific assets, let's take a quick look at CU's total assets over the last five years. These represent the sum of what the University owns - some of these assets (such as buildings) are recorded at historical cost - and others (such as investments) are recorded at fair value. Increases in total assets over time are generally indicative of a growing institution.
The resources held by CU are called assets. The three largest categories are Investments, Capital Assets, and Accounts Receivable.
CU also owns capital assets - buildings, equipment, land, etc. Capital assets cannot be spent so they do not provide the cash necessary to fund operations. In fact, as buildings age, the cost to maintain them increases, resulting in additional expense to CU.
The bulk of CU's remaining assets are accounts receivable. These receivables are primarily due from students; from federal, state, and private sponsors; and from patients. Not all payments will necessarily be collected. CU estimates the dollar amount that will not be collected and records an allowance for bad debt to offset the gross amount of the receivables.
Net position is what's left over after you subtract CU's liabilities from its assets. A positive net position is generally considered a good thing.
CU's capital asset balance less debt issued to fund those capital assets - this is typically over 50% of CU's total net position but doesn't reflect spendable reserves.
Endowments received as gifts: only the investment earnings on the gift can be spent and then only on scholarships, endowed chairs, and the like.
Entire gift can be spent, not just the investment earnings. Funds can be spent only in accordance with restrictions established by external third parties.
Balances designated for use by leadership to address University needs.