UNIVERSITY ENTERPRISES CORPORATION AT CSUSB …

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

JUNE 30, 2014


TABLE OF CONTENTS

PageUEC BOARD MEMBERS AS OF JUNE 30, 2014 1

INDEPENDENT AUDITOR'S REPORT 2

FINANCIAL STATEMENTSStatement of Financial Position 4

Statement of Activities 5

Statement of Expenses by Natural Classification 6

Statement of Cash Flows 7

Notes to Financial Statements 8

SUPPLEMENTARY INFORMATIONGASB Schedule of Net Postion 23

GASB Schedule of Revenues, Expenses and Changes in Net Position 24

Other Information 25

SINGLE AUDIT INFORMATIONSchedule of Expenditures of Federal Awards 32

Notes to Schedule of Expenditures of Federal Awards 37

Schedule of Findings and Questioned Costs 38

Summary Schedule of Prior Audit Findings 40

OMB CIRCULAR A-133 REPORT SECTIONIndependent Auditor's Report on Internal Control Over Financial Reporting

and on Compliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance with Government AuditingStandards 41

Independent Auditor's Report on Compliance for each Major Programand on Internal Control Over Compliance Required by OMB Circular A-133 43


BOARD OF DIRECTORS AS OF JUNE 30, 2014

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OFFICERS

Tomas Morales, Chief Executive Officer Ed Teyber, Chair

Lois Carson, Vice Chair Robert Gardner, Secretary/Treasurer

BOARD MEMBERS

Morales Tomas Ex-Officio Director; Board Chief Executive Officer Bodman Andy Ex-Officio Director Gardner Robert Ex-Officio Director; Board Secretary/Treasurer Rincon Frank Ex-Officio Director Teyber Ed Faculty Director; Board Chair Mendoza Josephine Faculty Director Almogela Happy Staff Director Walker Jimmy Student Director Brown Bob Community Director Carson Lois Community Director Chen-Maynard Dorothy Community Director Zellmer Val Community Director

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of UEC as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited UEC’s 2013 financial statements, and our report dated September 18, 2013, expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and supplementary information on page 23-30 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 18, 2014, on our consideration of UEC’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering UEC’s internal control over financial reporting and compliance.

San Bernardino, CA September 18, 2014

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB STATEMENT OF FINANCIAL POSITION

JUNE 30, 2014 (WITH COMPARATIVE TOTALS FOR 2013)

The accompanying notes are an integral part of these financial statements. -4-

2014 2013

ASSETSCash and cash equivalents 4,033,572$ 2,975,945$ Short-term investments 3,128,630 3,107,609 Grants receivable 1,565,262 2,290,546Other receivables 759,057 790,581 Prepaid expenses 124,268 33,583 Long-term investments 5,429,943 4,966,970 Construction in progress 5,240 - Property, plant and equipment, net 2,719,169 2,956,232

Total assets 17,765,141$ 17,121,466$

LIABILITIESAccounts payable 1,204,452$ 1,477,789$ Accrued wages and benefits 491,691 416,967 Accrued vacation 233,626 185,445 Other accrued liabilities 1,392,904 1,358,626 Post employment medical benefits 5,009,383 6,983,207 Liabilities to beneficiaries 1,927,200 1,769,689

Total liabilities 10,259,256 12,191,723

NET ASSETSUnrestricted net assets 3,326,539 1,017,040 Temporarily restricted net assets 4,179,346 3,912,703

Total net assets 7,505,885 4,929,743

Total liabilities and net assets 17,765,141$ 17,121,466$

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2014 (WITH COMPARATIVE TOTALS FOR 2013)


Temporarily 2014 2013Unrestricted restricted Total Total

REVENUESCommissions 723,009$ -$ 723,009$ 966,073$ Grants and contracts 22,409,417 - 22,409,417 21,636,874 Administrative fees - - - 899 Special programs 629,898 - 629,898 616,512 Parent fees 287,713 - 287,713 235,999Investment income 13,343 239,535 252,878 201,641 Unrealized gain (loss) on investments 6,953 174,242 181,195 135,073 Realized gain on investments 11,961 269,118 281,079 159,217Change in value in split

interest agreements (348,807) - (348,807) (93,743) Miscellaneous income 127,341 - 127,341 129,122 Contract settlements 210,562 - 210,562 90,496Restrictions released 416,252 (416,252) - -

Total revenues from operations 24,487,642 266,643 24,754,285 24,078,163

Transfers from University/Other Auxiliary Organization 499,252 - 499,252 -

Total revenues 24,986,894 266,643 25,253,537 24,078,163

EXPENSESProgram expenses:

Grants and contracts 22,933,070 - 22,933,070 21,738,048 Miscellaneous support services 848,474 - 848,474 847,518

Contribution of Observatory to University - - - 2,013,500 Management and general 666,235 - 666,235 1,011,308 Net change in OPEB liability valuation (1,770,384) - (1,770,384) - Loss on disposal of fixed assets - - - 925

Total program and general expenses 22,677,395 - 22,677,395 25,611,299

Total expenses 22,677,395 - 22,677,395 25,611,299

CHANGES IN NET ASSETS 2,309,499 266,643 2,576,142 (1,533,136)

NET ASSETS, beginning of year 1,017,040 3,912,703 4,929,743 6,462,879

NET ASSETS, end of year 3,326,539$ 4,179,346$ 7,505,885$ 4,929,743$

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB STATEMENT OF EXPENSES BY NATURAL CLASSIFICATION



2014 2013

EXPENSESSalaries 8,126,118$ 7,813,142$ Employee benefits 973,998 1,912,454Administrative costs 33,819 29,937Bank and credit fees 2,630 3,965Capital outlay 345,005 726,497Conferences and meetings 217,930 165,031Contract services 4,337,759 3,714,557Depreciation 418,115 400,419Direct student services 1,146 1,867Dues, memberships and subscriptions 13,783 10,474Food 63,449 90,713Honoraria 98,479 97,430Insurance 98,272 92,093Licenses and permits 2,143 2,042 Other expenses 406,834 2,656,424 Postage 13,526 16,490Printing 35,076 31,114Professional development and training 53,524 49,357Professional fees 41,959 83,887Public relations 18,781 10,888Rental, equipment and space 559,857 319,544Repairs 154,935 66,477Scholarships 600 - Stipends, room and board 4,778,780 5,384,646 Supplies 1,071,174 1,099,955 Travel 646,245 568,070University reimbursements 27,173 91,387Utilities and telephone 131,713 164,179Vehicle expenses 4,572 8,260

Total expenses 22,677,395$ 25,611,299$

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB STATEMENT OF CASH FLOWS



2014 2013CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets 2,576,142$ (1,533,136)$ Adjustments to reconcile change in net assets to net

cash provided (used) by operating activities Depreciation 418,115 400,419 Noncash investment (income) loss (181,195) (135,072) Change in value of split-interest agreements 348,807 93,743 Transfer of Observatory to University - 2,013,500 (Gain) loss on disposal of fixed assets - 925 (Increase) decrease in: Other receivables 756,808 (280,513) Prepaid expenses (90,685) 69,672 Increase (decrease) in: Accounts payable (273,337) 977,717 Accrued wages and benefits 122,905 (77,281) Other accrued liabilities 34,278 49,747 Post-employment medical benefits (1,973,824) (1,067,455) Liabilities to beneficiaries 157,511 (88,744)

Total adjustments (680,617) 1,956,658

Net cash provided by operating activities 1,895,525 423,522

CASH FLOWS FROM CAPITAL AND INVESTING ACTIVITIES: Payments related to the construction of capital assets (5,240) (247,384) Payments related to the acquisition of capital assets (181,051) (108,086) Purchase/sale of investments (651,607) (2,759,285)

Net cash (used) by investing activities (837,898) (3,114,755)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,057,627 (2,691,233)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,975,945 5,667,178

CASH AND CASH EQUIVALENTS AT END OF YEAR 4,033,572$ 2,975,945$

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014

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NOTE 1: SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES The Foundation was created on July 31, 1962 as the San Bernardino-Riverside State College Foundation pursuant to the general Non-Profit Corporation Laws of the State of California. On October 30, 1984, the name of the Corporation was changed to The Foundation for California State University, San Bernardino (The Foundation). On July 1, 2011, the name of the Corporation was changed to University Enterprises Corporation at CSUSB (UEC). At that time all endowment and gift assets, with the exception of charitable remainder trusts set up with the UEC acting as trustee, were transferred to the newly created Philanthropic Foundation. The UEC was organized to promote and assist education, administration and related services of the California State University, San Bernardino. The UEC operates as an auxiliary organization of the California State University, San Bernardino (University) under an operating agreement with the Trustees of the California State University (Trustees) which expires December 31, 2020. Major Program Services The UEC’s major program services include: Grants and Contracts, which includes the operation and administration of externally funded projects in support of the instructional, research and public functions of the University.

Child Care, consisting of the operation of the on-campus Child Care Center.

Commercial Operations, consisting of vending, and contract oversight of campus bookstore and dining service operations. Estimates The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. Those estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosure of contingent assets and liabilities. Accordingly, actual results could differ from those estimates. Management also determines the accounting principles to be used in the preparation of the financial statements. A description of the significant accounting policies employed in the preparation of these financial statements follows. Basis of Accounting and Presentation The financial statements of the UEC have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles. The financial statements are presented in accordance with Financial Accounting Standards Board FASB ASC 958-205. Accordingly, information regarding financial position and activities are reported according to two classes of net assets: unrestricted net assets that are not subject to donor-imposed restrictions and may be designated for specific purposes by action of the Board of Trustees, and temporarily restricted net assets whose use by The UEC is subject to donor-imposed restrictions that can be fulfilled by actions of The UEC or that expire by the passage of time.


JUNE 30, 2014

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NOTE 1: SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued) Cash and Cash Equivalents and Concentrations For purposes of the statement of cash flows, cash and cash equivalents include all highly liquid debt instruments with a maturity of three months or less from date of purchase. UEC maintains its cash balances in three financial institutions. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per insured bank, for each account ownership category. These balances may at times exceed the FDIC limit. As of June 30, 2014, UEC had $4,782,725 above federally insured limits. However, the financial institutions have secured the deposits by pledging securities in an individual collateral pool, held by a depository, regulated under state law. Accordingly, UEC believes it is not exposed to any significant credit risk on cash and cash equivalents. Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the statement of financial position. The fair value of investments in securities is based on the quoted market price of the underlying securities. Investments in real estate are stated at acquisition cost. Unrealized gains and losses are included in the change in net assets. Short-term investments consist of debt securities with original maturities of twelve months or less. Long-term investments consist of debt securities with original maturities greater than twelve months. Prepaid Expenses Prepaid expenses are advance payments for products or services that will be used in UEC’s programs or activities in subsequent periods. Receivables and Allowances Other receivables are presented net of an allowance for doubtful accounts. The allowance is based on prior years’ experience and management’s estimate of collectability. Management estimates that all receivables at June 30, 2014 are fully collectible, and therefore no allowance has been presented. Property, Plant and Equipment Property, plant and equipment are carried at cost or, if contributed, at fair market value at the date of contribution. Intangible assets include patents and software. UEC’s policy is to capitalize additions and improvements that significantly add to productive capacity or extend the useful life of an asset and are above $5,000. Repairs and maintenance are charged to operations as incurred. Costs and related allowances for depreciation of property, plant and equipment sold or otherwise retired are eliminated from the accounts and gains or losses on disposition are included in the changes in net assets. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets.


JUNE 30, 2014

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NOTE 1: SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued) Property, Plant and Equipment, (continued) Property acquired with federal and/or state funds is considered to be owned by UEC while used in the program(s) for which it was purchased or in other future authorized programs. Disposition of such equipment and the ownership of any proceeds there from is subject to federal and state regulations. Donated Materials, Services and Other Assets Donated materials and other assets such as stocks, bonds and other long-lived assets are recorded at their estimated fair value at the date of donation. Such donations are reported as increases in unrestricted net assets unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted contributions. UEC reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. UEC reclassifies temporarily restricted net assets to unrestricted net assets at that time. As permitted by FASB ASC 958-605-50-1, no amounts have been reflected in the financial statement for donated services. UEC generally pays for services requiring specific expertise. However, many individuals volunteer their time and perform a variety of tasks that assist UEC with specific assistance programs. UEC does not track the extent or quantity of donated services by its volunteers, and accordingly, no monetary or nonmonetary information has been disclosed. Grants and Contracts UEC records revenue from grants and similar contracts as the conditions of the grant or contract are satisfied. Concentrations Receivables include amounts due from students, governmental funding sources, the CSUSB Philanthropic Foundation and the California State University, San Bernardino. Income Taxes UEC is a Not-for-Profit tax-exempt Corporation organized under Internal Revenue Code Section 501(c)(3) and is classified as other than a private foundation. It is also exempt from state income taxes. However, any unrelated business income may be subject to taxation. The UEC had no obligation for any unrelated business income tax during the year.


JUNE 30, 2014

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NOTE 1: SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES, (continued) Income Taxes (continued) UEC has evaluated its tax positions and the certainty as to whether those tax positions will be sustained in the event of an audit by taxing authorities at the federal and state levels. The primary tax positions evaluated are related to UEC’s continued qualification as a tax-exempt organization and whether there is unrelated business income activities conducted that would be taxable. Management has determined that all income tax positions are more likely than not (>50%) of being sustained upon potential audit or examination; therefore, no disclosures of uncertain tax positions are required. UEC files informational tax returns in the U.S. federal jurisdictions and the state of California. UEC is no longer subject to U.S. federal and state examinations for years before 2007. Comparative Totals The financial statements include certain prior-year summarized comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with UEC’s financial statements for the year ended June 30, 2013, from which the summarized information was derived. Reclassifications Certain amounts in the 2013 comparative totals have been reclassified to conform to the 2014 reporting format. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Subsequent Events Management has evaluated subsequent events through September 18, 2014, the date the financial statements were available to be issued.


JUNE 30, 2014

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NOTE 2: INVESTMENTS AND FAIR VALUE MEASUREMENTS Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical

assets or liabilities in active markets that the plan has the 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 other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market

data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset 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 maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value.

Mutual Funds – Shares of mutual funds are valued at quoted market prices, which represent the net assets value of shares held by UEC at year-end.

Equity Securities – Equity securities are valued at last quoted sales price as of the close of trading at year-end; such securities, not traded on the year-end date, are valued at the last quoted bid price.

Fixed Income Securities – Fixed income securities are valued using the last quoted bid price.


JUNE 30, 2014

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NOTE 2: INVESTMENTS AND FAIR VALUE MEASUREMENTS, (continued) Certificates of Deposit – Certificates of deposit are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although UEC believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The fair value measurements and levels within the fair value hierarchy of those measurements for the assets reported at fair value on a recurring basis at June 30, 2014 are as follows:

Total Level 1 Level 2

Short-term investments:Money market funds 3,006,945$ -$ 3,006,945$ Equity securities 121,685 121,685 -

Total short-term investments 3,128,630 121,685 3,006,945

Long-term investments:Money market funds 301,103 - 301,103 Mutual funds 4,269,248 4,269,248 - Equity securities 859,592 859,592 -

Total long-term investments 5,429,943 5,128,840 301,103

Total investments 8,558,573$ 5,250,525$ 3,308,048$

Fair Value Measurements at June 30, 2014


JUNE 30, 2014

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NOTE 2: INVESTMENTS AND FAIR VALUE MEASUREMENTS, (continued)

A summary of investments held at June 30, 2014 follows:

Cost Fair Value

Cumulative Realized/

Unrealized Gains (Losses)

Short-term investments:Fidelity investments 109,206$ 121,685$ 18,914$ Citizens Business Bank Money Mkt. 3,000,509 3,006,945 -

3,109,715 3,128,630 18,914

Long-term investments:External trusts 4,986,583 5,429,943 443,360

Total investments 8,096,298$ 8,558,573$ 462,274$

A summary of investment income for the year ended June 30, 2014 follows:

UnrestrictedTemporarily Restricted

Interest and dividends 13,343$ 239,535$ Realized and unrealized gains

and losses on investments, net 18,914 443,360

Total investment income 32,257$ 682,895$

Investment fees for the year ended June 30, 2014 amounted to $28,866 and are included in Administrative costs on the Statement of Expenses by Natural Classification.


JUNE 30, 2014

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NOTE 3: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at June 30, 2014:

Land 4,640$ Construction work-in- progress 5,240 Buildings 3,936,573 Equipment, furniture and fixtures 2,599,369 Leasehold improvements 439,320 Intangible assets 170,211

7,155,353 Less: accumulated depreciation and amortization (4,430,944)

Property, plant and equipment, net 2,724,409$

The buildings are located on land leased from the State of California. Because of the relationship between UEC and the University, the building is being depreciated over its estimated useful life rather than the term of the lease which expires December 31, 2017. Depreciation expense for the year ended June 30, 2014 was $418,115. NOTE 4: SPLIT-INTEREST AGREEMENTS UEC is the beneficiary of various charitable remainder trusts which provide for the payment of distributions to the grantor or other designated beneficiary over the trust’s term (generally the designated beneficiary’s lifetime). At the end of the trust’s term, the remaining assets are available to UEC. UEC recognizes the fair value of its interest in the trust at the time the trust is established as a contribution. Fair value is based on the present value of the estimated future benefits to be received using discount rates ranging from 8.2 percent to 9.4 percent. Assets held in the charitable remainder trusts totaled $5,429,943 at June 30, 2014 and are reported at fair value, as part of the Long-term investments on Statement of Financial Position depending on the nature of the assets. UEC did not receive additional contributions to split-interest agreements during the year ended June 30, 2014. UEC revalues its liability to make distributions to the other designated beneficiaries annually based on mortality tables and other applicable factors. The change in the value of the split-interest agreements recorded for the year ended June 30, 2014 was a decrease of $348,807. A reevaluation of charitable remainder trust assets and corresponding liabilities at June 30, 2014 resulted in a change in temporarily restricted net assets.


JUNE 30, 2014

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NOTE 5: RESTRICTIONS AND LIMITATIONS ON NET ASSETS Temporarily restricted net assets at June 30, 2014 totaled $4,179,346 and were available for the following purposes:

Restricted by donors for the following purposes:Palm Desert Campus 387,003$

Restricted by donors for use in future periods:Split-interest agreements 3,792,343

Total temporarily restricted net assets 4,179,346$

There were no permanently restricted net assets at June 30, 2014. NOTE 6: COMMISSIONS UEC receives a percentage of proceeds derived from Bookstore and Food Services operations as well as vending machines. The contractor of the Bookstore operation provides a guaranteed commission for the life of the contract. The Food Services commission is based on a percentage of gross sales. NOTE 7: DEFINED BENEFIT PENSION PLAN Plan Description UEC contributes to the California Public Employees’ Retirement System (PERS), an agent multi-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. All employees who are current members of PERS or employed for more than six months or accumulate 1,000 hours of paid employment are eligible to participate in PERS. Benefits vest after five years of PERS credited service, usually five years of full-time service. UEC employees who retire at or after age 50 with five years of credited service are entitled to an annual retirement benefit, payable for life, in an amount equal to a percent of pay, on a scale based on age and years of service, of the average monthly pay rate for the highest consecutive 12 months of compensation. PERS also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute and UEC policies.


JUNE 30, 2014

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NOTE 7: DEFINED BENEFIT PENSION PLAN, (continued) Plan Description, (continued) Effective January 1, 2013, Public Employees’ Pension Reform Act (PEPRA) implemented new benefit formulas and final compensation period, as well as new contribution requirements for new employees hired on or after January 1, 2013 who meet the definition of new member as per PEPRA. Funding Policy UEC employees are required to contribute five percent of their annual covered earnings over $513. UEC is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. The required employer contribution rate for the year ended June 30, 2014 was 10.723% for miscellaneous plan and 12.977% for miscellaneous tier 1 plan (PEPRA). The payroll for employees covered by PERS for the year ended June 30, 2014 was $4,214,861. Total payroll for the year ended June 30, 2014 amounted to $8,014,667. Pension expense for the year ended June 30, 2014 was $451,960 based on amounts required to be contributed. Actuarially Determined Contribution Requirements and Contributions Made PERS uses the Entry Age Normal Actuarial Cost Method, which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. UEC’s annual pension cost of $451,960 was equal to the required contribution. According to the cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of Entry Age Cost method in which the employer’s total normal cost is expressed as a level percentage of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The significant actuarial assumptions used to compute the actuarially determined contribution requirement were determined based on an actuarial valuation performed as of June 30, 2011.


JUNE 30, 2014

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NOTE 7: DEFINED BENEFIT PENSION PLAN, (continued) A Summary of principal assumptions and methods used to determine the annual required contribution is shown below:

Valuation Date 6/30/2011Actuarial Cost Method Entry Agee Actuarial Cost MethodAsset Valuation Method Asset Smoothing MethodAmortization Method Level of Percent of PayrollActuarial Assumptions: Inflation Rate 2.75% Investment Return 7.50% Projected Salary Growth 3.0% Post-Retirement benefit Growth 1.5% to 3% depending on age

Miscellaneous Plan

The following is the three-year trend information:

Annual Percentage ofPension APC Net Pension

Fiscal Year Cost (APC) Contributed Obligation6/30/12 495,164$ 100% -$ 6/30/13 398,671 100% - 6/30/14 451,960 100% -

Three Year Trend Information for PERS

Funded Status of the plan:

Actuarial Value Funding Funded Ratio Annual Covered Ratio of FundingValuation Date Accrued Liability of Assets (AVA) Actuarial Excess AVA Payroll Actuarial Excess

6/30/2009 14,462,420$ 14,851,835$ (389,415)$ 102.7% 5,648,991$ 6.89%6/30/2010 15,597,752 16,292,855 (695,103) 104.5% 6,038,632 11.51%6/30/2011 17,770,914 17,979,930 (209,016) 101.2% 6,004,145 3.48%

NOTE 8: OTHER POST EMPLOYMENT BENEFITS UEC has one retiree health plan that offers active and retired employees the option of enrolling in certain HMO or indemnity plans available through the program. UEC currently pays up to $476 per month for retiree coverage, $906 per month for coverage with one dependent and $1,146 for coverage with two or more dependents of retirees. Retiree contributions are to fund the cost of coverage that exceeds these amounts. Disbursements exceed retiree contributions and the plan currently has no assets. The accounting for the health care plan anticipates future cost-sharing changes to the written plan that are consistent with UEC’s past practice and management’s intent to manage plan costs. In particular, UEC’s maximum increase in the capped contribution is assumed to be limited to 2.5 percent. UEC no longer offers retiree medical benefits to employees hired after September 11, 2009.


JUNE 30, 2014

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NOTE 8: OTHER POST EMPLOYMENT BENEFITS, (continued) The following is a summary of change in accumulated postemployment benefit obligation, change in plan assets, and funded status of the plan.

June 30, 2014

APBO at beginning of year 7,641,644$ Service cost (excluding expenses) 93,315 Interest cost 245,083 Actuarial (gain) loss (1,827,494) Benefits paid (219,971)

5,932,577

Fair value of assets at beginning of year 658,437 Net return on plan assets less plan expenses 98,813 Employer contribution 385,915 Benefits paid (219,971)

923,194

5,009,383$

Current liabilities 260,354$ Noncurrent liabilities 4,749,029

5,009,383$

obligation (APBO)Change in accumulated postemployment benefit

Change in plan assets

APBO at end of year

Fair value of plan assets at end of year

Total

Funded status

Amounts recognized in the statement of financial positionposition consist of:

Service cost (including expenses) 93,315$ Interest cost 245,083 Expected return on plan assets (47,803) Amortization of net (gain) loss (236,295)

54,300

Net actuarial (gain) loss (1,827,494)

(1,827,494)

(1,773,194)$

5,932,577$

Total recognized

Total recognized in change in net assets

Net periodic postemployment benefit cost

Accumulated benefit obligation

Components of net periodic postemploymentbenefit cost (NPPBC)

Other changes in plan assets and benefitobligations


JUNE 30, 2014

-20-

NOTE 8: OTHER POST EMPLOYMENT BENEFITS, (continued) The assumptions used in the measurement of UEC’s benefit obligation and net periodic postemployment benefit cost included a 4.10 percent weighted-average discount rate as of and for the year ended June 30, 2014. Medical plan premiums and CalPERS minimum employer contributions are assumed to increase at rates shown in the following table:

Year Rate Year Rate Year Rate2015 6.70% 2018 5.80% 2021 and later 5.00%2016 6.40% 2019 5.50%2017 6.10% 2020 5.20%

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plan. A one percent increase in the assumed healthcare trend rates would have the following effects:

Dollar PercentIncrease Increase

Effect on service cost component of net periodic benefit cost 5,717$ 6.13%Effect on interest cost component of net periodic benefit cost 13,120 5.31%Accumulated post-retirement benefit obligiation 285,214 5.19% A one percent decrease in the assumed healthcare trend rates would have the following effects:

Dollar PercentDecrease Decrease

Effect on service cost component of net periodic benefit cost (9,189)$ -9.85%Effect on interest cost component of net periodic benefit cost (18,838) -7.63%Accumulated post-retirement benefit obligiation (409,515) -7.45% The Plan is funded on a pay-as-you-go basis; the expected contribution for the following year is the same as the expected future benefit payments for such year. UEC paid $219,971 during the year ended June 30, 2014, for current benefit costs. The expected benefits to be paid are as follows:

Years Ending June 30, Amount2015 260,354$ 2016 289,437 2017 278,099 2018 284,622 2019 292,536

2020-2024 1,557,803


JUNE 30, 2014

-21-

NOTE 9: RELATED PARTIES AND ECONOMIC DEPENDENCY As discussed in Note 1, UEC operates under an agreement with the Trustees as an auxiliary organization of the University. Accordingly, essentially all revenues and realization of certain assets, are dependent upon the continuation of this agreement. UEC leases space for its bookstore operations, the Center for Developmental Activities, and the land for UEC’s offices for nominal rent from the State of California. U.S. generally accepted accounting principles require that contribution revenue and rent expense be recorded for the difference between a fair market rent and the amount actually charged under these leases. However, UEC has not determined a fair market rent and, accordingly, these amounts are not recorded in the financial statements. A schedule of related party transactions between UEC, University, and other auxiliary organizations are as follow:

As of June 30, 2014 CSUSBPhilanthropic Foundation

Student Union Total

Expenses:

Payments to Univ/Aux for salaries of personnel working on contracts, grants, and other programs.

2,134,118$ - - 2,134,118$

Payments to Univ/Aux for other than salaries of personnel.

5,178,872 102 71,566 5,250,540

Expenses total 7,312,990 102 71,566 7,384,658

Revenues:

Payments received from Univ/Aux for services, space, and programs.

649,166 1,866 651,032

Due to:Accounts Payable to Univ/Aux . (412,910) - (15,637) (428,547)

Due from:Accounts Receivable due from Univ/Aux. 100,953 - - 100,953

Transfer, net 69,118 430,134 - 499,252 Grand Total 7,719,317$ 432,102$ 55,929$ 8,207,348$

-22-

SUPPLEMENTARY INFORMATION

Assets:

Current assets:Cash and cash equivalents $ 4,033,572 Short-term investments 3,128,630 Accounts receivable, net 2,324,319 Leases receivable, current portion — Notes receivable, current portion — Pledges receivable, netPrepaid expenses and other assets 124,268

Total current assets 9,610,789

Noncurrent assets:Restricted cash and cash equivalents — Accounts receivable, netLeases receivable, net of current portion — Notes receivable, net of current portion — Student loans receivable, net — Pledges receivable, netEndowment investments — Other long-term investments 5,429,943 Capital assets, net 2,724,409 Other assets

Total noncurrent assets 8,154,352

Total assets 17,765,141

Deferred outflows of resources:Unamortized loss on refunding(s) —

Total deferred outflows of resources —

Liabilities:

Current liabilities:Accounts payable 1,204,452 Accrued salaries and benefits payable 491,691 Accrued compensated absences– current portion 129,519 Unearned revenue Capitalized lease obligations – current portion — Long-term debt obligations – current portion — Claims Liability for losses and LAE - current portion — Depository accounts — Other liabilities 1,392,904

Total current liabilities 3,218,566

Noncurrent liabilities:Accrued compensated absences, net of current portion 104,107 Unearned revenueGrants refundable — Capitalized lease obligations, net of current portion — Long-term debt obligations, net of current portion — Claims Liability for losses and LAE, net of current portion — Depository accounts — Other postemployment benefits obligation 5,009,383 Other liabilities 1,927,200

Total noncurrent liabilities 7,040,690

Total liabilities 10,259,256

Deferred inflows of resources:Deferred inflows from SCAs, grants, and others —

Total deferred inflows of resources —

Net Position:Net investment in capital assets 2,724,409 Restricted for:

Nonexpendable – endowments — Expendable:

Scholarships and fellowships — Research — Loans — Capital projects — Debt service — Other 4,179,345

Unrestricted 602,131

Total net position $ 7,505,885

OK

University Enterprises Corporation at CSUSB

Schedule of Net Position

June 30, 2014

(for inclusion in the California State University)

See accompanying independent auditor's report-23-

Revenues:

Operating revenues:Student tuition and fees (net of scholarship allowances of $________) $ — Grants and contracts, noncapital:

Federal 13,914,300 State 8,078,958 Local — Nongovernmental 414,323

Sales and services of educational activities — Sales and services of auxiliary enterprises (net of scholarship —

allowances of $________) — Other operating revenues 1,980,362

Total operating revenues 24,387,943

Expenses:

Operating expenses:Instruction 1,209,773 Research 8,631,911 Public service 5,994,260 Academic support 449,986 Student services 6,385,030 Institutional support 859,456 Operation and maintenance of plant — Student grants and scholarships — Auxiliary enterprise expenses — Depreciation and amortization 418,115

Total operating expenses 23,948,531

Operating income (loss) 439,412

Nonoperating revenues (expenses):State appropriations, noncapital — Federal financial aid grants, noncapital — State financial aid grants, noncapital — Local financial aid grants, noncapital — Nongovernmental and other financial aid grants, noncapital — Other federal nonoperating grants, noncapital — Gifts, noncapital — Investment income (loss), net — Endowment income (loss), net — Interest Expenses — Other nonoperating revenues (expenses) 2,136,730

Net nonoperating revenues (expenses) 2,136,730

Income (loss) before other additions 2,576,142

State appropriations, capital — Grants and gifts, capital — Additions (reductions) to permanent endowments —

Increase (decrease) in net position 2,576,142

Net position:Net position at beginning of year, as previously reported 4,929,743 Restatements — Net position at beginning of year, as restated 4,929,743

Net position at end of year $ 7,505,885

OK


Schedule of Revenues, Expenses, and Changes in Net Position

Year Ended June 30, 2014


See accompanying independent auditor's report-24-

1 Restricted cash and cash equivalents at June 30, 2014:Portion of restricted cash and cash equivalents related to endowments $All other restricted cash and cash equivalents -

Total restricted cash and cash equivalents $ - OK

2.1 Composition of investments at June 30, 2014: Current

Unrestricted Current Restricted Total CurrentNoncurrent Unrestricted

Noncurrent Restricted Total Noncurrent Total

State of California Surplus Money Investment Fund (SMIF) $ - - - - - - - State of California Local Agency Investment Fund (LAIF - - - - - - - Wachovia Short Term Fund - - - - - - - Wachovia Medium Term Fund - - - - - - - Wachovia Equity Fund - - - - - - - CSU Consolidated Investment Pool (includes SWIFT and 0948 SMIF - - - - - - - Common Fund - Short Term Fund - - - - - - - Common Fund - Others - - - - - - - Debt securities - - - - - - - Equity securities 121,685 - 121,685 - 859,592 859,592 981,277 Fixed income securities (Treasury notes, GNMA's - - - - - Land and other real estate - - - - - Certificates of deposit - - - - - - - Notes receivable - - - - - - - Mutual funds - - - - 4,269,248 4,269,248 4,269,248 Money Market funds 3,006,945 - 3,006,945 - 301,103 301,103 3,308,048 Collateralized mortgage obligations -

Inverse floaters - - - - - - - Interest-only strips - - - - - - - Agency pass-through - - - - - - - Partnership interests (includes private pass-through - - - - - - - Alternative investments - - - - - - - Hedge funds - - - - - - -

Other major investments - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - -

Total investments 3,128,630 - 3,128,630 - 5,429,943 5,429,943 8,558,573

Less endowment investments (enter as negative number) - - - OK

Total investments 3,128,630 - 3,128,630 - 5,429,943 5,429,943 8,558,573 OK OK OK

2.2 Investments held by the University under contractual agreements at June 30, 2014Portion of investments in note 2.1 held by the University under contractu

agreements at June 30, 2014 : - - - - - - -

2.3 Restricted current investments at June 30, 2014 related to: Amount Add description $ — Add description — Add description — Add description — Add description — Add description — Add description —

Total restricted current investments at June 30, 2014 $ — OK

2.4 Restricted noncurrent investments at June 30, 2014 related to: AmountEndowment investmen $ — OK Charitable Remainder Trusts 5,429,943 Add description — Add description — Add description — Add description — Add description — Add description —

Total restricted noncurrent investments at June 30, 2014 $ 5,429,943 OK



June 30, 2014Other Information

See accompanying independent auditor's report25




3.1 Composition of capital assets at June 30, 2014: Balance Transfers of

Balance Prior period June 30, 2013 Completed BalanceJune 30, 2013 Adjustments Reclassifications (restated) Additions Reductions CWIP June 30, 2014

Nondepreciable/nonamortizable capital assets:Land and land improvement $ 4,640 - - 4,640 - - - 4,640 Works of art and historical treasures - - - - - - - - Construction work in progress (CWIP) - - - - 5,240 - - 5,240 Intangible assets:

Rights and easements - - - - - - - - Patents, copyrights and trademarks - - - - - - - - Internally generated intangible assets in progres - - - - - - - - Licenses and permits - - - - - - - - Other intangible assets:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total intangible assets - - - - - - - -

Total nondepreciable/nonamortizable capital assets 4,640 - - 4,640 5,240 - - 9,880

Depreciable/amortizable capital assets:Buildings and building improvement 3,928,718 - - 3,928,718 7,855 - - 3,936,573 Improvements, other than building - - - - - - - - Infrastructure - - - - - - - - Leasehold improvements 439,320 - - 439,320 - - - 439,320 Personal property:

Equipment 2,438,686 - - 2,438,686 160,683 - - 2,599,369 Library books and materials - - - - - - - -

Intangible assets:Software and websites - - - - 53,958 - - 53,958 Rights and easements - - - - - - - - Patents, copyright and trademarks 151,244 - - 151,244 - (34,991) - 116,253 Licenses and permits - - - - - - - - Other intangible assets:

Total intangible assets 151,244 - - 151,244 53,958 (34,991) - 170,211

Total depreciable/amortizable capital assets 6,957,968 - - 6,957,968 222,496 (34,991) - 7,145,473

Total capital assets 6,962,608 - - 6,962,608 227,736 (34,991) - 7,155,353

Less accumulated depreciation/amortization:Buildings and building improvement (2,135,795) - - (2,135,795) (110,179) - - (2,245,974) Improvements, other than building - - - - - - - - Infrastructure - - - - - - - - Leasehold improvements (327,038) - - (327,038) (38,211) - - (365,249) Personal property: -

Equipment (1,420,656) - - (1,420,656) (255,759) - - (1,676,415) Library books and materials - - - - - - - -

Intangible assets: - Software and websites - - - - (36,741) - - (36,741) Rights and easements - - - - - - - - Patents, copyright and trademarks (122,887) - - (122,887) 16,322 - - (106,565) Licenses and permits - - - - - - - - Other intangible assets:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total intangible assets (122,887) - - (122,887) (20,419) - - (143,306)

Total accumulated depreciation/amortization (4,006,376) - - (4,006,376) (424,568) - - (4,430,944)

Total capital assets, net $ 2,956,232 - - 2,956,232 (196,832) (34,991) - 2,724,409 OK OK OK

Add descriptionAdd description

Add descriptionAdd description

Add description





3.2 Detail of depreciation and amortization expense for the year ended June 30, 2014:

Depreciation and amortization expense related to capital assets $ 424,568 Amortization expense related to other asset (6,453)

Total depreciation and amortization $ 418,115 OK

4 Long-term liabilities activity schedule:

BalanceBalance Prior period June 30, 2013 Balance Current Long-term

June 30, 2013 adjustments Reclassifications (restated) Additions Reductions June 30, 2014 portion portion

$ 185,445 — — 185,445 48,181 - 233,626 129,519 104,107 OK OKCapitalized lease obligations:

Gross balance — — — — - - — — — Unamortized premium / (discount) on capitalized lease obligation — — — — - - — —

Total capitalized lease obligations — — — — - - — — — OK OK

Long-term debt obligations:Revenue Bonds — — — — - - — — — OKOther bonds (non-Revenue Bonds — — — — - - — — — Commercial Paper — — — — - - — — — Note Payable related to SRB — — — — - - — — — Other: Add description — — — — - - — — — Add description — — — — - - — — — Add description — — — — - - — — — Add description — — — — - - — — — Add description — — — — - - — — — Add description — — — — - - — — —

Total long-term debt obligations — — — — - - — — —

Unamortized bond premium / (discount) — — — — - - — —

Total long-term debt obligations, net — — — — — — — — — OK OK

Total long-term liabilities $ 185,445 — — 185,445 48,181 — 233,626 129,519 104,107

5 Future minimum lease payments - capital lease obligations:Principal and

Principal Interest Interest

Year ending June 30:2015 - - — 2016 - - — 2017 - - — 2018 - - — 2019 - - — 2020 - 2024 - - — 2025 - 2029 - - — 2030 - 2034 - - — 2035 - 2039 - - — 2040 - 2044 - - — 2045 - 2049 - - — 2050 - 2054 - - — 2055 - 2059 - - — 2060 - 2064 - - —

Total minimum lease payments —

Less amounts representing interest —

Present value of future minimum lease payments —

Less: current portion — OK

Capitalized lease obligation, net of current portion $ — OK

Accrued compensated absences





6

Principal and Principal and Principal andPrincipal Interest Interest Principal Interest Interest Principal Interest Interest

2015 $ - - - - - - - - - OK2016 - - - - - - - - - 2017 - - - - - - - - - 2018 - - - - - - - - - 2019 - - - - - - - - - 2020 - 2024 - - - - - - - - - 2025 - 2029 - - - - - - - - - 2030 - 2034 - - - - - - - - - 2035 - 2039 - - - - - - - - - 2040 - 2044 - - - - - - - - - 2045 - 2049 - - - - - - - - - 2050 - 2054 - - - - - - - - - 2055 - 2059 - - - - - - - - - 2060 - 2064 - - - - - - - - -

Total $ - - - - - - - - - OK

OK

7 Calculation of net position

Total

GASB FASB Auxiliaries

7.1 Calculation of net position - Net investment in capital assets

Capital assets, net of accumulated depreciation $ — 2,724,409 2,724,409 OKCapitalized lease obligations - current portion — — — OKCapitalized lease obligations, net of current portion — — — OKLong-term debt obligations - current portion — — — OKLong-term debt obligations, net of current portio — — — OKPortion of outstanding debt that is unspent at year-en — — — Other adjustments: (please list) Add description — — — Add description — — — Add description — — — Add description — — — Add description — — —

Net position - net investment in capital asset $ — 2,724,409 2,724,409

OK7.2 Calculation of net position - Restricted for nonexpendable - endowmentsPortion of restricted cash and cash equivalents related to endowments $ — — — OKEndowment investments — — — OKOther adjustments: (please list) Add description — — — Add description — — — Add description — — — Add description — — — Add description — — — Add description — — — Add description — — — Add description — — — Add description — — — Add description — — —

Net position - Restricted for nonexpendable - endowments per SNP $ — — —

Auxiliary Organizations

Year ending June 30:

Long-term debt obligation schedule

Revenue BondsAll other long-term

debt obligations Total





8 Transactions with Related EntitiesAmount

Payments to University for salaries of University personnel working on contracts, grants, and other program $ 2,134,118 Payments to University for other than salaries of University personne 5,178,872 Payments received from University for services, space, and program 649,166 Gifts-in-kind to the University from discretely presented component uni — Gifts (cash or assets) to the University from discretely presented component uni — Accounts (payable to) University (enter as negative number (412,910) Other amounts (payable to) University (enter as negative number — Accounts receivable from University 100,953 Other amounts receivable from University 69,118

* For the purposes of this schedule related entities refers specifically to transactions with California State University OKSan Bernardino (excludes auxiliary organizations)

9 Other Postemployment Benefits Obligation (OPEB)

Annual required contribution (ARC) $ — Contributions during the year (1,973,824)

Increase (decrease) in net OPEB obligation (NOO) (1,973,824)

NOO - beginning of year 6,983,207

NOO - end of year $ 5,009,383

OK

10 Pollution remediation liabilities under GASB Statement No. 49:

Description Amount Add description $ — Add description — Add description — Add description — Add description — Add description — Add description — Add description — Add description — Add description —

Total pollution remediation liabilities $ —

Less: current portion —

Pollution remedition liabilities, net of current portion —





11 The nature and amount of the prior period adjustment(s) recorded to beginning net positionNet Position

Class AmountDr. (Cr.)

Net position as of June 30, 2013, as previously reported $ 4,929,743 OKPrior period adjustments

1 (list description of each adjustment — 2 (list description of each adjustment — 3 (list description of each adjustment — 4 (list description of each adjustment — 5 (list description of each adjustment — 6 (list description of each adjustment — 7 (list description of each adjustment — 8 (list description of each adjustment — 9 (list description of each adjustment —

10 (list description of each adjustment —

Net position as of June 30, 2013, as restated $ 4,929,743

OK

Provide a detailed breakdown of the journal entries (at the financial statement line item level) booked to record each prior period adjustment:Debit Credit

Net position class:______________________1 (breakdown of adjusting journal entry

$ — —


— —


— —


— —


— —


— —


— —


— —


— —


— —

OK


SINGLE AUDIT INFORMATION

UNIVERISTY ENTERPRISES CORPORATION AT CSUSBSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2014(FEIN: 95-6067343)

Federal Agency Federal Grantor/Pass-through Grantor CFDA or Pass-through Federal Pass Through to

Program Title Number Number Contracting Agency Expenditures Subrecipieints

MAJOR PROGRAMS

U.S. Department of Defense - DirectS0592 - FF20844-Nat'l Security Studies 12.598 HHM402-12-1-0005 DEFENSE INTELLIGENCE AGENCY 82,035$ -$ S0682 - FF20938-Nat'l Security Studies 12.598 HHM 402-12-1-0005 NATIONAL SECURITY AGENCY 255,181 6,066 Centers for Academic Excellence Intelligence Community Centers for Academic Excellence 337,216 6,066

Total U.S. Department of Defense 337,216 6,066

U.S. DEPARTMENT OF EDUCATION - Pass ThruS0333 - GG20577-ALEGRIA 10/11 84.367 ITQ-08-516 CALIFORNIA POSTSECONDARY EDUCATION COMMISSION 2,783 - S0576 - GG20827-NCLB9 TCAP 84.367 NCLB9 TCAP SO UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 4,906 - S0577 - GG20828-NCLB9 RIMS CAP 84.367 NCLB9 TCAP SB RIMS UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 3,400 - S0578 - GG20829-NCLB9 LAB CAP 84.367 NCLB9-TCAP-SB LA BAS UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT (1,652) - S0585 - GG20836-SWIRL Y3/4 84.367 ITQ-10-702 CALIFORNIA POSTSECONDARY EDUCATION COMMISSION 100,084 76,382 S0616 - GG20871-NCLB9-ICMP 6/2013 84.367 NCLB9-CMP-SB UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 86 - S0661 - GG20917-NCLB10 TCAP 06/14 84.367 NCLB10-TCAP-SO UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 73,104 - S0662 - GG20918-NCLB10 LAB CAP 6/14 84.367 NCLB10-TCAP-LA BASIN UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 20,999 - S0663 - GG20919-NCLB10 RIMS CAP 6/14 84.367 NCLB10-TCAP-SB RIMS UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 74,726 - S0672 - GG20928-NCLB10-ICMP 6/14 84.367 NCLB10 ICMP UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 33,910 - S0712 - GG20969-SWIRL Y4/4 84.367 CALIFORNIA POSTSECONDARY EDUCATION COMMISSION 143,564 109,231 S0733 - GG20991-NCLB10A TCAP Spplmbtl 84.367 NCLB10-TCAP-S0 UNIVERSITY OF CALIFORNIA OFFICE OF THE PRESIDENT 36,752 -

Improving Teacher Quality State Grants 492,662 185,613

S0569 - GG20820-Workability 12/13 84.126 CSUSB PO#33628 CSU SAN BERNARDINO (891) - S0666 - GG20922-WorkAbility IV 6/14 84.126 CSUSB PO#36337 CSU SAN BERNARDINO 291,160 -

Rehabilitation Services Vocational Rehabilitation Grants to States 290,269 Total U.S Department of Education 782,931 185,613

RESEARCH & DEVELOPMENT PROGRAMS

U.S.Department of Agriculture - DirectS0057 - FF20434-USDA NaturalCareer8/12 10.223 2009-38422-19782 U.S. DEPARTMENT OF AGRICULTURE 49,508 - S0469 - FF20717-Wtrshd MgmtUSDACareers 10.223 2011-38422-31204 U.S. DEPARTMENT OF AGRICULTURE 423,434 15,264 S0680 - FF20936-Ecological Restor 8/17 10.223 2013-38422-20953 U.S. DEPARTMENT OF AGRICULTURE 28,260 7,744 S0699 - FF20955-Watershed Mgmt/USDA Cr 10.223 U.S. DEPARTMENT OF AGRICULTURE 171,182 16,699

Hispanic Serving Institutions Education Grants 672,384 39,707

S0689 - FF20945-Water Res & Policy IntTechnical Assistance and Training Grants 10.761 000C06071G138848 U.S. DEPARTMENT OF AGRICULTURE 85,971 16,234

U.S Department of Agriculture - Pass ThroughS0396 - GG20645-Habilidades Unidos

Hispanic Serving Institutions Education Grants 10.223 SUBCONTRACT W/OUT # RIVERSIDE COMMUNITY COLLEGE DISTRICT 297,879 -

S0394 - LL20642-Nutrition Ed 9/12State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 MOU SAN BERNARDINO COUNTY SUPERINTENDENT OF SCHOOLS 15,913 -

Total U.S. Department of Agriculture 1,072,147 55,941

U.S. Department of Defense - DirectS0503 - FF20753-ORG-FERRO-DOD 2/15

Basic Scientific Research 12.431 W911NF-12-1-0080 US ARMY RDECOM ACQ CTR 165,580 (43,636)

S0514 - FF20764-Game Play 2/2015Basic, Applied, and Advanced Research in Science and Engineering 12.630 W911NF-12-1-0077 US ARMY RDECOM ACQ CTR 97,323 44,624

S0706 - FF20963-DOD IASP ANEX I-9/14Information Security Grant Program 12.902 H98230-13-1-0436 NATIONAL SECURITY AGENCY 958 - Total U.S. Department of Defense 263,861 988

U. S. Department of Interior -U.S. Geological Survey - DirectS0400 - FF20649-Holocene Erthqke 4/14

Earthquake Hazards Reduction Program 15.807 G11AP20138 0003 USGS NATIONAL GRANTS BRANCH 8,016 - Total U. S. Department of Interior -U.S. Geological Survey 8,016 -

U.S. Department of Transportation - DirectS0382 - FF20627-UniversityTransCtr2011

University Transportation Centers Program 20.701 DTRT06-G0023 CALIFORNIA DEPT OF TRANSPORTATION 46,001 - Total U.S. Department of Transportation 46,001 -

See the accompanying independent auditor's report32





National Aeronautics and Space Administration - DirectS0003 - FF10443-SolarSys Astr-5/08(F4) 43.001 1276037 JET PROPULSION LABORATORY 223 - S0032 - FF20324-Coma Gas Dynamics12/13 43.001 NNX09AB71G NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 14,084 -

Aerospace Education Services Program 14,307 -

S0465 - FF20713-2011 NASA STEM 9/15Education -National Aeronautics and Space Administration 43.008 NNX11AQ99G NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 175,376 120,211 TOTAL National Aeronautics and Space Administration 189,683 120,211

National Endowment for the Humanities - DirectS0551 - FF20802-Manuscript 12/13 45.160 HB-50200-12 NATIONAL ENDOWMENT FOR THE HUMANITIES 240 - S0641 - FF20897-Nashe Str&Elzbthn Pblc 45.160 FB-57123-13 NATIONAL ENDOWMENT FOR THE HUMANITIES 60,790 -

Promotion of the Humanities_Fellowships and Stipends 61,030 Total National Endowment for the Humanities 61,030 -

National Science Foundation - DirectS0347 - FF20591 PRISM 07/15 47.049 DMS-1035120 NATIONAL SCIENCE FOUNDATION 232,923 - S0376 - FF20621-Evolution of Comets 47.049 AST-1010012 NATIONAL SCIENCE FOUNDATION 76,198 71,970 S0510 - FF20760-REU Geo & Knot 03/15 47.049 DMS-1156608 NATIONAL SCIENCE FOUNDATION 94,298 -

Mathematical and Physical Sciences 403,419 71,970

S0580 - FF20831-Non Shannon 9/15Computer and Information Science and Engineering 47.070 CCF-1216285 NATIONAL SCIENCE FOUNDATION 40,303 -

S0054 - FF20425-CSUSB Noyce Math-7/15 47.076 DUE-0934761 NATIONAL SCIENCE FOUNDATION 202,128 - S0055 - FF20432-IAEP SFS 12/2013 47.076 0912068 NATIONAL SCIENCE FOUNDATION 58,225 - S0085 - FF20522-Math ACES:Algbrc cncpt 47.076 DUE-0962778 NATIONAL SCIENCE FOUNDATION 1,549,618 291,640 S0349 - FF20593-CSUSB Noyce Phase II 47.076 DUE-1035229 NATIONAL SCIENCE FOUNDATION 154,632 - S0432 - FF20681-S-STEM SCHOLARS 6/15 47.076 DUE-1060632 NATIONAL SCIENCE FOUNDATION 120,964 - S0589 - FF20840-RENEW IAEP/SFS 7/2017 47.076 1241541 NATIONAL SCIENCE FOUNDATION 663,532 - S0684 - FF20940-SFS Conference 7/17 47.076 1241541 NATIONAL SCIENCE FOUNDATION 346,295 - S0685 - FF20941-InvestgSTISSUES 8/2015 47.076 1347671 NATIONAL SCIENCE FOUNDATION 46,379 - S0704 - FF20960-MODEL CSI 8/16 47.076 DUE-1303344 NATIONAL SCIENCE FOUNDATION 62,081 - S0719 - FF20976-TUES Trnsfrmng Undrgrd 47.076 DUE 1408106 NATIONAL SCIENCE FOUNDATION 387 - S0725 - FF20982-CREST 1/19 47.076 HRD-1345163 NATIONAL SCIENCE FOUNDATION 166,871 -

Education and Human Resources 3,371,112 291,640

National Science Foundation - Pass ThroughS0638 - NG20894-NREUP Labeling 2013 47.049 MOU 5/6/13 MATHEMATICAL ASSOCIATION OF AMERICA 9,507 - S0735 - NG20993-2014 NREUP 47.049 MOU 4/7/14 MATHEMATICAL ASSOCIATION OF AMERICA 2,701 -

Mathematical and Physical Sciences 12,208 -

S0590 - GG20842-San Jacinto Fault 47.050 33311579-01 UNIVERSITY OF SOUTHERN CALIFORNIA 1,843 - S0599 - GG20852-GARLOCK - OSL FAULT 47.050 33311579 USC-SOUTHERN CALIFORNIA EARTHQUAKE CENTER 8,660 - S0686 - GG20942-San Gorgonio Pass GPS 47.050 14215 USC-SOUTHERN CALIFORNIA EARTHQUAKE CENTER 14,694 -

Geosciences 25,197 -

S0381 - NG20626-HarnessngPwrOfHerbariaBiological Sciences 47.074 RSA-11-0956417A-703 RANCHO SANTA ANA BOTANIC GARDEN 275 -

S0511 - GG20761-CYBERWATCH WEST 9/13 47.076 DUE-1104278 MT SAN ANTONIO COLLEGE 80,148 - S0721 - GG20978-CYBERWATCH 9/14 47.076 AGREEMENT 1361636 WHATCOM COMMUNITY COLLEGE 45,888 -

Education and Human Resources 126,036 - Total National Science Foundation 3,978,550 363,610

U.S. Department of Education - DirectS0016 - FF20176-Be Smart 9/2013

Higher Education_Institutional Aid 84.031 P031S070088 U.S. DEPARTMENT OF EDUCATION 8,941 -

S0354 - FF20598-Minority Science ImprvMinority Science and Engineering Improvement 84.120 P120A100072 U.S. DEPARTMENT OF EDUCATION 86,102 -

U.S. Department of Education - Pass ThroughS0211 - LL20493-Coop Grntng Lnk Yr 84.031 YEAR 5 Amend 1 DESERT COMMUNITY COLLEGE DESERT 257,693 -

Higher Education_Institutional Aid

S0606 - LL20861-SBVCIE MSEIPMinority Science and Engineering Improvement 84.120 PO#132412 SAN BERNARDINO COMMUNITY COLLEGE DISTRICT 5,128 -






S0586 - GG20837-SDL 3/14Improving Teacher Quality State Grants 84.367 ITQ-11-809 CALIFORNIA POSTSECONDARY EDUCATION COMMISSION 155,683 123,831

Total U.S. Department of Education 513,547 123,831

U.S. Health & Human Services - DirectS0673 - FF20929-Ontgny of C-P Function

Mental Health Research Grants 93.242 1SC1MH102930-01A1 NATIONAL INSTITUTE OF HEALTH 231,349 -

S0035 - FF20384-Effect of Erly Mth4/13 93.279 1SC1DA027683-04 NATIONAL INSTITUTE OF HEALTH 27,117 - S0050 - FF20421-OntognyBhvrl:Assc-4/13 93.279 1SC1DA027985-01 NATIONAL INSTITUTE OF HEALTH 56,710 - S0555 - FF20806-DIDARP 93.279 5R24DA033877 NATIONAL INSTITUTE OF HEALTH 226,863 - S0574 - FF20825-DIDARP-Iniguez 93.279 1R24DA003887 NATIONAL INSTITUTE OF HEALTH 43,021 - S0575 - FF20826-DIDARP LaChausse 6/17 93.279 5R24DA033877-02 NATIONAL INSTITUTE OF HEALTH 23,420 -

Drug Abuse and Addiction Research Programs 377,131 -

S0443 - FF20691-RIMI Administration 93.307 5P20MD002722-05 NATIONAL INSTITUTE OF HEALTH 35,294 - S0446 - FF20694-RIMI Faculty Research 93.307 5P20MD002722-05 NATIONAL INSTITUTE OF HEALTH 5,859 -

Minority Health and Health Disparities Research 41,153 -

S0075 - FF20464-Appld Ling & Lim EngNursing Research 93.361 1R15NR010630-01A1 NATIONAL INSTITUTE OF HEALTH 20,689 -

S0079 - FF20490-Anlys SrfcBehav 12/12 93.859 1R15GM090242-01 NCE NATIONAL INSTITUTE OF HEALTH 11,914 - S0081 - FF20495-DOPAMINE MODLTN 12/13 93.859 5SC3GM089597-02 REVI NATIONAL INSTITUTE OF HEALTH 68,877 - S0509 - FF20759-FLU NUCPROTEIN11/15 93.859 1SC3GM099559 NATIONAL INSTITUTE OF HEALTH 96,928 - S0534 - FF20785-MARC 2012/2013 5/13 93.859 5T34GM083883-04 NATIONAL INSTITUTE OF HEALTH (4,194) - S0624 - FF20879-CSUSB RISE Program 93.859 5R25GM100829-02 NATIONAL INSTITUTE OF HEALTH 349,302 `S0644 - FF20900-CSUSB MARC 93.859 3T34GM083883-05S1 NATIONAL INSTITUTE OF HEALTH 308,978 -

Biomedical Research and Research Training 831,805 -

S0623 - FF20878-Biomed&Behavioral Res. 93.865 2G1HRD052368-06 NATIONAL INSTITUTE OF HEALTH 59,278 - S0737 - FF20995-Biomedical&Biobehavrl 93.865 5G11HD052368-07 NATIONAL INSTITUTE OF HEALTH 9,481 -

Child Health and Human Development Extramural Research 68,759 -

U.S. Health & Human Services -Pass ThroughS0436 - GG20684-PCT Development

Discovery and Applied Research for Technological Innovations to Improve Human Health 93.286 SUBCONTRACT 01/31/13 LOMA LINDA UNIVERSITY 304 -

S0438 - LL20686 TPP F4 9/2015Teenage Pregnancy Prevention Program 93.297 10/11-1031 SAN BERNARDINO COUNTY SUPERINTENDENT OF SCHOOLS 74,696 -

S0364 - GG20609-Custdl Grndfmls 12/13Nursing Research 93.361 443169-CSUSB AMEND 4 KENT STATE UNIVERSITY 75,944 -

S0229 - GG20526-Enhancing End of LifeCancer Treatment Research 93.395 10014206-01 UNIVERSITY OF UTAH 56,280 -

Total U.S. Health and Human Services 1,778,110 -

TOTAL RESEARCH-MAJOR PROGRAMS 7,910,945 664,581

Total Major Programs 9,031,092 856,260

OTHER FEDERAL PROGRAMSU.S. Department of Agriculture - DirectS0467 - FF20715-USDA/HSINP 8/16

Agricultural Research_Basic and Applied Research 10.001 58-6201-1-040 U.S. DEPARTMENT OF AGRICULTURE 9,094 -

U.S. Department of Agriculture - Pass ThroughChildrens Center Food Progarm

Child and Adult Care Food Program 10.558 36-1527-0A CDE- OFFICE OF CHILD NUTRITON SERVICES 23,341 -

S0165 - GG20268-UpwrdBnd SumFd8/9999F4Summer Food Service Program for Children 10.559 36-77360V CALIFORNIA DEPARTMENT OF EDUCATION 12,090 -

Total U.S. Department of Agriculture 44,525 -

U.S. Department of Defense - DirectS0632 - FF20888-STARTALK ARABIC 2/14 12.900 H98230-13-1-0092 NATIONAL SECURITY AGENCY 91,915 - S0731 - S0731 FF20989-STARTALK 12.900 H98230-14-1-0015 NATIONAL SECURITY AGENCY 16,451 -

Language Grant Program 108,366 -






U.S. Department of Defense - Pass ThroughS0621 - NG20876-Project GO 8/13 12.357 2012-GO-CSUSB INSTITUTE OF INTERNATIONAL EDUCATION INC. 114,603 - S0710 - NG20967-PROJECT GO 8/14 12.357 2013 GO-CSUSB INSTITUTE OF INTERNATIONAL EDUCATION INC. 185,574 -

ROTC Language and Culture Training Grants 300,177

S0635 - NG20891-SLI-ARABIC 8/13 12.599 S124910100 SB ARABIC CSU LONG BEACH FOUNDATION 56,286 - S0636 - NG20892-SLI-PERSIAN 8/13 12.599 S124910100 SB PER CSU LONG BEACH FOUNDATION 20,994 - S0637 - NG20893-SLI-CHINESE 8/13 12.599 S124910100 SB CHI CSU LONG BEACH FOUNDATION 12,894 -

Congressionally Directed Assistance 90,174 - Total U.S. Department of Defense 498,717 -

U.S. Department of Housing and Urban Development - Pass ThroughS0532 - LL20783-MorenoValleyCDBG 12-13 14.218 LL20783 CITY OF MORENO VALLEY 42,804 - S0584 - LL20835 Corona CDBG 14.218 89483431 CITY OF CORONA (876) - S0605 - LL20860-City of Hesperia CDBG 14.218 2013-0000317 Amnd COUNTY OF SAN BERNARDINO, OFFICE OF ECONOMIC DEVELOPMENT 22,500 - S0674 - LL20930-Corona CDBG 13/14 14.218 89484 CITY OF CORONA 25,351 - S0724 - LL20981-RIVERSIDE CDBG 14.218 4.152-13 RIVERSIDE COUNTY 12,500 - S0732 - LL20990-Moreno Valley CDBG 14.218 NONE CITY OF MORENO VALLEY 12,952 -

Community Development Block Grants/Entitlement Grants 115,231 - Total U.S. Department of Housing and Urban Development 115,231 -

U.S. Department of Labor - Pass ThroughS0634 - LL20890-County San Brndno 9/13

WIA Dislocated Worker Formula Grants 17.278 135217 COUNTY OF SAN BERNARDINO 3,500 - TOTAL U.S. Department of Labor 3,500 -

National Endowment for the Humanities - DirectS0388 - FF20635-IntegrArea Studie

romotion of the Humanities_Teaching and Learning Resources and Curriculum Development 45.162 AC-50118-11 NATIONAL ENDOWMENT FOR THE HUMANITIES 27,341 - Total National Endowment for the Humanities 27,341 -

National Science Foundation - Pass throughS0691 - NG20947-CSU LSAMP Sr Alln 5/14

Education and Human Resources 47.076 523891 UNIVERSITY ENTERPRISES, INC. 11,000 -

U.S. Small Business Administration - Direct S0594 - FF20847-CV Women Bus Ctr 9/13 59.043 SBAHQ-11-W-0002 U.S. SMALL BUSINESS ADMINISTRATION 19,817 - S0597 - FF20850-IE Women Bus Ctr 9/13 59.043 SBAHQ-11-W-0004 U.S. SMALL BUSINESS ADMINISTRATION 45,752 - S0692 - FF20948 CVWBC 13/14 59.043 SBAHQ-11-W-0002 U.S. SMALL BUSINESS ADMINISTRATION 89,044 - S0694 - FF20950-IEWBC 13/14 59.043 SBAHQ-11-W-0004 U.S. SMALL BUSINESS ADMINISTRATION 58,865 -

Women's Business Ownership Assistance 213,478 -

U.S. SMALL BUSINESS ADMINISTRATION - Pass throughS0716 - NG20973-Inland Empire SBDC 14 59.037 S-5701-CSUSB CSU FULLERTON AUX SRVC CORP 284,217 - S0608 - NG20863-Inland Empire SBDC 59.037 SBSHW-13-B-0046 CSU FULLERTON AUX SRVC CORP 251,001 - S0681 - NG20937-IE SBDC Carryover 59.037 NEED CSU FULLERTON AUX SRVC CORP 15,000 -

Small Business Development Centers 550,218 - Total U.S. Small Business Administration 763,696 -

U.S Department of Veterans Affiars - DirectS0553 - FF20804-ATS: Veterans 12/13 64.013 NONE U.S. DEPARTMENT OF VETERANS AFFAIRS 16,636 - S0679 - FF20935 ATS: Veterans 13/14 F4 64.013 NONE U.S. DEPARTMENT OF VETERANS AFFAIRS 23,727 -

Veterans Prosthetic Appliances 40,363 - TOTAL U.S Department of Veterans Affiars 40,363 -

U.S. Department of Education - DirectTRIO CLUSTERS0336 - FF20580-SAIL Program Year 4

TRIO_Student Support Services 84.042 P042A100214-13 U.S. DEPARTMENT OF EDUCATION 351,365 -

S0528 - FF20778-UpwardBound Rialto5/14 84.047 P047A120164 -14 U.S. DEPARTMENT OF EDUCATION 252,079 - S0527 - FF20777-Upward Bound SB 5/14 84.047 P047A121599 7 U.S. DEPARTMENT OF EDUCATION 253,692 - S0601 - FF20856-UpwardBound MSPrgm9/17 84.047 P047M120029 U.S. DEPARTMENT OF EDUCATION 237,373 -

TRIO Upward Bound 743,144 -

S0362 - FF20606-LongTermTraining 09/15Rehabilitation Long-Term Training 84.129 H129B100032 U.S. DEPARTMENT OF EDUCATION 99,185 -






S0014 - FF20145-11/12 QTQS 6/13Bilingual Education-Professional Development (84.195N) 84.195 T195N070098 U.S. DEPARTMENT OF EDUCATION 46 -

S0068 - FF20448-CCAMPIS MAIN Yr4 84.335 P335A090094-12 U.S. DEPARTMENT OF EDUCATION 10,119 - S0069 - FF20449-CCAMPIS SAIL Yr4 84.335 P335A090094-12 U.S. DEPARTMENT OF EDUCATION 2,181 - S0070 - FF20450-CCAMPIS ChldCare9/11 84.335 P335A090094-12 U.S. DEPARTMENT OF EDUCATION 5,504 - S0071 - FF20451-CCAMPIS-ITLS 9/2011 84.335 P335A090094-12 U.S. DEPARTMENT OF EDUCATION 29,357 - S0700 - FF20956-CCAMPIS MAIN YR.1 84.335 P335A130025 U.S. DEPARTMENT OF EDUCATION 35,876 - S0701 - FF20957-CCAMPIS SAIL YR.1 84.335 P335A130025 U.S. DEPARTMENT OF EDUCATION 1,172 - S0702 - FF20958-CCAMPIS CHILDCARE YR.1 84.335 P335A130025 U.S. DEPARTMENT OF EDUCATION 24,637 - S0703 - FF20959-CCAMPIS ITLS YR.1 84.335 P335A130025 U.S. DEPARTMENT OF EDUCATION 153,618 -

Child Care Access Means Parents in School 262,464 -

U.S. DEPARTMENT OF EDUCATION - Pass ThroughS0498 - GG20748-PASS GO 9/2016

Higher Education Institutional Aid 84.031 SBCCD# 7715 SAN BERNARDINO COMMUNITY COLLEGE DISTRICT 288,281 -

S0643 - LL20899-DRIVEArts in Education 84.351 330526 TWIN RIVERS UNIFIED SCHOOL DISTRICT 44,465 -

S0437 - GG20685 Closure Bonus FundsRehabilitation Services-Vocational Rehabilitation Grants to States, Recovery Act 84.390 CSUSB PO#31414 CSU SAN BERNARDINO 430 -

Total U.S Department of Education 1,789,380 -

U.S. Health & Human Services - Pass ThroughS0561 - NG20812-PCWTA 06/13

Temporary Assistance for Needy Families 93.558 E0009663 SAN DIEGO STATE UNIVERSITY FOUNDATION 509 -

Childrens Center Program 93.575 CCTR-3206 CALIFORNIA DEPARTMENT OF EDUCATION 4,612 Childrens Center Program 93.575 CSPP-3412 CALIFORNIA DEPARTMENT OF EDUCATION 12,092

Child Care and Development Block Grant 16,704 -

Childrens Center Program 93.596 CCTR-3206 CALIFORNIA DEPARTMENT OF EDUCATION 9,669 Childrens Center Program 93.596 CSPP-3412 CALIFORNIA DEPARTMENT OF EDUCATION 25,350

Child Care Mandatory and Matching Fundof the Child Care and Development Fund 35,019 -

S0557 - GG20808-Title IVE MSW 06/13 93.658 00007945 UC BERKELEY 11,153 - S0558 - GG20809-Title IVE BS 06/13 93.658 00007945 UC BERKELEY 8,961 - S0559 - GG20810-IVE PTHWYS 06/13 93.658 00007945 UC BERKELEY 2,616 - S0657 - GG20913-Title IVE MSW 06/14 93.658 00008300 REGENTS OF THE UNIVERSITY OF CALIFORNIA 1,263,513 - S0658 - GG20914-Title IVE BSW 06/14 93.658 00008300 REGENTS OF THE UNIVERSITY OF CALIFORNIA 508,943 - S0659 - GG20915-Title IVE PTHWYS 06/14 93.658 00008300 REGENTS OF THE UNIVERSITY OF CALIFORNIA 132,118 -

Foster Care Title IV-E 1,927,304 -

Total U.S. Health and Human Services 1,979,536 -

Total Other Federal Programs 5,273,289 -

Total All Programs 14,304,381$ 856,260$


UNIVERSITY ENTERPRISES CORPORATION AT CSUSB NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2014

37

NOTE 1: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the UEC under programs of the federal government for the year ended June 30, 2014. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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 UEC, it is not intended to and does not present the financial position, changes in net assets or cash flows of the UEC. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


38

I. SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of auditor's report issued: unmodified Internal control over financial reporting:

Material weakness identified? yes X no Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial

statements noted? yes X no

Federal Awards Internal control over major programs:

Material weaknesses identified? yes X no Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported

Type of auditor's report issued on compliance for major programs: unmodified

Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A-133? yes X no

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB SCHEDULE OF FINDINGS AND QUESTIONED COSTS


-39-

I. SUMMARY OF AUDITOR’S RESULTS (continued) Identification of major programs:

CFDA Number Name of Federal Program

Various 84.367 84.126 12.598

Research & Development Cluster Improving Teacher Quality Rehabilitation Services Vocational Rehabilitation Centers for Academic Excellence Intelligence Community Centers for Academic Excellence

Dollar threshold used to distinguish between type A and type B programs: $ 429,130 Auditee qualified as low-risk auditee? yes X no II. FINDINGS – FINANCIAL STATEMENT FINDINGS None III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

None

UNIVERSITY ENTERPRISES CORPORATION AT CSUSB SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


40

There were no prior year audit findings to report

OMB CIRCULAR A-133 REPORT SECTION

-42-

Compliance and Other Matters As part of obtaining reasonable assurance about whether UEC’s financial statements are free from material misstatement, 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that 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 internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


-44-

Opinion on Each Major Federal Program In our opinion, UEC complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Report on Internal Control over Compliance Management of UEC 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 of compliance, we considered UEC’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal 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 UEC’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with 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 combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with 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 with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal 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 the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.


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UNIVERSITY ENTERPRISES CORPORATION AT CSUSB …