University of Houston
FY 2001 Account Balance Fluctuation Analysis
(Only amounts that changed from FY 00 by more than 10% are listed.)

Balance Sheet Items

Assets

Cash, cash equivalents, and investments increased by 124.9%.
The change is the result of an increase in temporary investment assets that were purchased with proceeds from a new $52,070,000 revenue bond issued for the construction of a recreation and wellness facility.

Receivables increased by 18.0%.
The increase is the result of income earned on both endowed and non-endowed investments and held by the University System Administration. Additionally, receivables for services performed for the System in connection with system-wide initiatives have increased. These receivables will be distributed in subsequent accounting periods.

Equipment decreased by 12.9%.
There was extensive damage to fixed equipment, furniture, and fixtures at the University of Houston during June 2001, in the wake of Tropical Storm Allison, which resulted in a decrease in the valuation of capital equipment assets. Ninety of the University’s 105 buildings suffered some damage from the storm.

Library books/art/other assets decreased by 25.9%.
More than 250,000 books, government documents, and international collections were destroyed or damaged in the O’Quinn Law Library basement during Tropical Storm Allison. The University expects that insurance proceeds and the Federal Emergency Management Agency will ultimately finance the majority of the costs associated with replacing these assets.

Liabilities

Payables increased by 50.6%.
Several accounting transactions resulted in an increase in the reported accounts payable balance. Liabilities for payroll related costs associated with fringe benefits, which were reported as accrued liabilities in the prior year, were categorized as accounts payable for financial reporting purposes. Available plant fund balances
were transferred to other activities in order to fund various initiatives. This commitment will be distributed in subsequent accounting periods.

Revenue bonds increased by 54.4%.
The increase in revenue bond liability was a result of the issuance of a new $52,070,000 bond for the construction of a state of the art recreation and wellness facility.

Funds held for others increased by 86.8%.
The balance in the liability for funds that are held by the University for others, increased from the previous year. The liability balance in the prior year had been diminished because funds to be disbursed to students as financial assistance awards in that year, had not been received from third party providers at year-end.

Accrued compensable absences increased by 10.2%.
The potential liability due to employees for unused vacation balances reflected a modest increase, as a result of employees taking fewer hours of annual leave during the year. State mandated salary increases during fiscal year 2001 increased the value of these outstanding balances.