THESTATEUNIVERSITYOFNEWYORK2010AnnualFINANCIALREPORT
THESTATEUNIVERSITYOFNEWYORK2010AnnualFINANCIALREPORT

Board 
of 
Trustees 


Carl 
T. 
Hayden, 
Chairman 
Aminy 
I. 
Audi 
Joseph 
Belluck 
Ronald 
Ehrenberg 
Stephen 
J. 
Hunt 
Eunice 
A. 
Lewin 
Marshall 
Lichtman 


H. 
Carl 
McCall 
John 
L. 
Murad, 
Jr. 
Pedro 
Noguera 
Linda 
S. 
Sanford 
Carl 
Spielvogel 
Cary 
Staller 
Harvey 
F. 
Wachsman 
Gerri 
Warren-Merrick 
Julie 
Gondar 
(Student 
Trustee) 
Kenneth 
P. 
O�Brien 
(Faculty 
Senate) 
Chancellor 


Nancy 
L. 
Zimpher 


Senior 
Management 


Monica 
Rimai 


Senior 
Vice 
Chancellor 
and 
Chief 
Operating 
Officer 


Dr. 
David 
K. 
Lavallee 
Senior 
Vice 
Chancellor 
for 
Academic 
Affairs 
and 
Provost 


John 
J. 
O�Connor 
Senior 
Vice 
Chancellor 
for 
Research 
& 
Innovation 
and 
Secretary 
of 
the 
University 
President 
of 
the 
Research 
Foundation 


Johanna 
Duncan-Poitier 


Chancellor�s 
Deputy 
for 
the 
Education 
Pipeline 
and 
Vice 
Chancellor 
for 
Community 
Colleges 


Marti 
Anne 
Ellermann 


University 
Counsel 
(Interim) 


Elizabeth 
L. 
Bringsjord 


Vice 
Chancellor 
for 
Academic 
Programs 
& 
Assessment 
and 
Vice 
Provost 


Philip 
W. 
Wood 


Vice 
Chancellor 
for 
Capital 
Facilities 
and 
General 
Manager 
of 
the 
Construction 
Fund 


Kathleen 
Preston 


Vice 
Chancellor 
for 
Financial 
Services 
& 
Health 
Affairs 
(Interim) 


Mitch 
Leventhal 


Vice 
Chancellor 
for 
Global 
Affairs 


Michael 
C. 
Trunzo 


Vice 
Chancellor 
for 
Government 
Relations 


Curtis 
L. 
Lloyd 


Vice 
Chancellor 
for 
Human 
Resources 


James 
Ketterer 


Vice 
Chancellor 
for 
Policy 
& 
Planning 
and 
Deputy 
Provost 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Message 
from 
the 
Chancellor 


1
ntentionally 
eft 
lank 




PricewaterhouseCoopers 
LLP 


roadway 
lbany 
Y 
elephone 
( 
acsimile 
( 


Report 
of 
Independent 
Auditors 


o 
he 
oard 
of 
rustees 
tate 
niversity 
of 
ew 
York 
n 
our 
opinion 
based 
on 
our 
audits 
and 
the 
reports 
of 
other 
auditors 
the 
financial 
statements 
of 
the 
business 
type 
activities 
and 
the 
aggregate 
discretely 
presented 
component 
units 
of 
he 
tate 
niversity 
of 
ew 
York 
(the 
niversity 
which 
collectively 
comprise 
the 
niversity 
s 
basic 
financial 
statements 
present 
fairly 
in 
all 
material 
respects 
the 
respective 
financial 
position 
of 
the 
business 
type 
activities 
and 
the 
aggregate 
discretely 
presented 
component 
units 
of 
the 
niversity 
at 
une 
and 
and 
the 
respective 
changes 
in 
financial 
position 
and 
cash 
flows 
where 
applicable 
thereof 
for 
the 
years 
then 
ended 
in 
conformity 
with 
accounting 
principles 
generally 
accepted 
in 
the 
nited 
tates 
of 
merica 
hese 
financial 
statements 
are 
the 
responsibility 
of 
the 
niversity 
s 
management 
ur 
responsibility 
is 
to 
express 
opinions 
on 
these 
financial 
statements 
based 
on 
our 
audits 
or 
the 
year 
ended 
une 
we 
did 
not 
audit 
the 
financial 
statements 
of 
the 
tate 
niversity 
onstruction 
und 
the 
esearch 
oundation 
nor 
certain 
auxiliary 
service 
corporations 
which 
statements 
reflect 
total 
assets 
of 
percent 
and 
total 
net 
assets 
of 


percent 
of 
the 
related 
totals 
as 
of 
une 
and 
total 
revenues 
of 
percent 
of 
the 
related 
total 
revenues 
for 
the 
year 
ended 
of 
the 
business 
type 
activities 
or 
the 
year 
ended 
une 
we 
did 
not 
audit 
the 
financial 
statements 
of 
the 
tate 
niversity 
onstruction 
und 
nor 
certain 
auxiliary 
service 
corporations 
which 
statements 
reflect 
total 
assets 
of 
percent 
and 
total 
net 
assets 
of 
percent 
of 
the 


ntentionally 
eft 
lank 


related 
totals 
as 
of 
une 
and 
total 
revenues 
of 
percent 
of 
the 
related 
total 
revenues 
for 
the 
year 
then 
ended 
of 
business 
type 
activities 
dditionally 
we 
did 
not 
audit 
the 
financial 
statements 
of 
the 
discretely 
presented 
component 
units 
which 
comprise 
of 
the 
total 
assets 
total 
net 
assets 
and 
total 
revenue 
of 
the 
discretely 
presented 
component 
units 
hose 
statements 
were 
audited 
by 
other 
auditors 
whose 
reports 
thereon 
have 
been 
furnished 
to 
us 
and 
our 
opinion 
insofar 
as 
it 
relates 
to 
the 
amounts 
included 
for 
the 
tate 
niversity 
onstruction 
und 
the 
esearch 
oundation 
certain 
auxiliary 
service 
corporations 
and 
the 
discretely 
presented 
component 
units 
is 
based 
on 
the 
reports 
of 
the 
other 
auditors 


e 
conducted 
our 
audits 
of 
these 
statements 
in 
accordance 
with 
auditing 
standards 
generally 
accepted 
in 
the 
nited 
tates 
of 
merica 
hose 
standards 
require 
that 
we 
plan 
and 
perform 
the 
audits 
to 
obtain 
reasonable 
assurance 
about 
whether 
the 
financial 
statements 
are 
free 
of 
material 
misstatement 
n 
audit 
includes 
examining 
on 
a 
test 
basis 
evidence 
supporting 
the 
amounts 
and 
disclosures 
in 
the 
financial 
statements 
assessing 
the 
accounting 
principles 
used 
and 
significant 
estimates 
made 
by 
management 
and 
evaluating 
the 
overall 
financial 
statement 
presentation 
e 
believe 
that 
our 
audits 
and 
the 
reports 
of 
other 
auditors 
provide 
a 
reasonable 
basis 
for 
our 
opinions 


s 
discussed 
in 
ote 
the 
niversity 
is 
included 
in 
the 
primary 
government 
reporting 
entity 
of 
the 
tate 
of 


ew 
York 
as 
an 
enterprise 
fund 
he 
accompanying 
financial 
statements 
represent 
only 
the 
financial 
state 
ments 
of 
the 
niversity 
and 
do 
not 
purport 
to 
and 
do 
not 
present 
fairly 
the 
financial 
statements 
of 
the 
tate 
of 
ew 
York 
in 
conformity 
with 
accounting 
principles 
generally 
accepted 
in 
the 
nited 
tates 
of 
merica 


s 
discussed 
in 
ote 
to 
the 
financial 
statements 
the 
discretely 
presented 
component 
units 
are 
reported 
in 
accordance 
with 
generally 
accepted 
accounting 
principles 
promulgated 
by 
the 
inancial 
ccounting 


tandards 
oard 
(! 
! 
and 
the 
audits 
were 
not 
performed 
in 
accordance 
with 
overnment 
uditing 


tandards 


he 
anagement 
s 
iscussion 
and 
nalysis 
on 
pages 
through 
is 
not 
a 
required 
part 
of 
the 
basic 
financial 
statements 
but 
is 
supplementary 
information 
required 
by 
accounting 
principles 
generally 
accepted 
in 
the 
nited 
tates 
of 
merica 
e 
have 
applied 
certain 
limited 
procedures 
which 
consisted 
principally 
of 
inquiries 
of 
management 
regarding 
the 
methods 
of 
measurement 
and 
presentation 
of 
the 
required 
supplementary 
information 
owever 
we 
did 
not 
audit 
the 
information 
and 
express 
no 
opinion 
on 
it 


ctober 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Management�s 
Discussion 
and 
Analysis 


Management�s 
discussion 
and 
analysis 
(MD&A) 
provides 
a 
broad 
overview 
of 
the 
State 
University 
of 
New 
York�s 
(State 
University) 
financial 
condition 
as 
of 
June 
30, 
2010 
and 
2009, 
the 
results 
of 
its 
operations 
for 
the 
years 
then 
ended, 
and 
significant 
changes 
from 
the 
previous 
years. 
Management 
has 
prepared 
the 
financial 
statements 
and 
related 
footnote 
disclosures 
along 
with 
this 
MD&A. 
The 
MD&A 
should 
be 
read 
in 
conjunction 
with 
the 
audited 
financial 
statements 
and 
related 
footnotes 
of 
the 
State 
University 
which 
directly 
follows 
the 
MD&A. 


For 
financial 
reporting 
purposes, 
the 
State 
University�s 
reporting 
entity 
consists 
of 
all 
sectors 
of 
the 
State 
University 
including 
the 
university 
centers, 
health 
science 
centers 
(including 
hospitals), 
colleges 
of 
arts 
and 
sciences, 
colleges 
of 
technology 
and 
agriculture, 
specialized 
colleges, 
statutory 
colleges 
(located 
at 
the 
campuses 
of 
Cornell 
and 
Alfred 
Universities), 
and 
central 
services, 
but 
excluding 
community 
colleges. 
The 
financial 
statements 
also 


Financial 
Highlights 


At 
June 
30, 
2010 
and 
2009, 
total 
assets 
reported 
by 
the 
State 
University 
were 
$11.87 
billion 
and 
$10.92 
billion 
and 
total 
liabilities 
were 
$11.15 
billion 
and 
$10.03 
billion, 
respectively. 
Net 
assets, 
which 
total 
$718 
million 
and 
$897 
million 
at 
June 
30, 
2010 
and 
2009, 
experienced 
a 
decrease 
of 
$179 
million 
in 
2010 
and 
a 
decrease 
of 
$1.03 
billion 
in 
2009. 
The 
net 
assets 
at 
June 
30, 
2010, 
2009, 
and 
2008 
are 
summarized 
in 
the 
following 
categories 
(in 
thousands): 


2010 
2009 
2008 
Net 
Assets: 
Invested 
in 
capital 
assets, 


net 
of 
related 
debt 
$ 
791,413 
606,165 
641,283 
Restricted 
-nonexpendable 
267,384 
249,321 
264,380 
Restricted 
-expendable 
363,186 
328,863 
830,009 
Unrestricted 
(703,738) 
(287,146) 
195,872 


Total 
net 
assets 
$ 
718,245 
897,203 
1,931,544 


3
include 
the 
financial 
activity 
of 
The 
Research 
Foundation 
of 
the 
State 
University 
of 
New 
York 
(Research 
Foundation), 
which 
administers 
the 
sponsored 
program 
activity 
of 
the 
State 
University, 
the 
State 
University 
Construction 
Fund 
(Construction 
Fund), 
which 
administers 
the 
capital 
program 
of 
the 
State 
University, 
the 
auxiliary 
services 
corporations 
and 
foundations 
located 
on 
its 
campuses. 


The 
foundations 
meet 
the 
criteria 
under 
the 
Governmental 
Accounting 
Standards 
Board 
(GASB) 
accounting 
and 
financial 
reporting 
requirements 
for 
inclusion 
in 
the 
State 
University 
reporting 
entity. 
For 
financial 
statement 
presentation 
purposes, 
the 
combined 
totals 
of 
the 
foundations 
are 
not 
included 
in 
the 
reported 
amounts 
of 
the 
State 
University, 
but 
are 
discretely 
presented 
on 
separate 
pages 
in 
the 
State 
University�s 
financial 
statements, 
in 
accordance 
with 
display 
requirements 
prescribed 
by 
the 
Financial 
Accounting 
Standards 
Board 
(FASB) 
for 
not-for-
profit 
organizations. 


The 
focus 
of 
the 
MD&A 
is 
on 
the 
State 
University 
financial 
information 
contained 
in 
the 
balance 
sheets, 
the 
statements 
of 
revenues, 
expenses, 
and 
changes 
in 
net 
assets, 
and 
the 
statements 
of 
cash 
flows, 
which 
exclude 
the 
foundations. 
Foundation 


financial 
statement 
information 
is 
presented 
separately 
on 
pages 
16 
and 
17 
of 
the 
State 
University�s 
financial 
statements. 


The 
decrease 
in 
net 
assets 
during 
2010 
and 
2009 
was 
driven 
by 
accrued 
postemployment 
and 
post-
retirement 
benefit 
expenses 
of 
$429 
million 
and 
$424 
million, 
respectively. 
In 
2010, 
this 
decrease 
was 
offset 
by 
an 
increase 
in 
operating 
revenues 
of 
$358 
million 
compared 
to 
2009, 
and 
net 
realized 
and 
unrealized 
gains 
on 
investments 
of 
$64 
million 
in 
2010. 
In 
2009, 
net 
realized 
and 
unrealized 
investment 
losses 
of 
$389 
and 
a 
$288 
million 
transfer 
of 
substantially 
all 
of 
the 
assets 
held 
in 
the 
State 
University 
Endowment 
Fund 
to 
the 
State 
University 
campus 
foundations 
contributed 
to 
the 
significant 
decline. 
Revenues, 
expenses, 
and 
the 
change 
in 
net 
assets 
for 
the 
2010, 
2009, 
and 
2008 
fiscal 
years 
are 
summarized 
as 
follows 
(in 
thousands): 


2010 
2009 
2008 
Operating 
revenues 
$ 
5,163,190 
4,805,384 
4,402,658 
Nonoperating 
revenues 
3,643,405 
3,580,847 
3,590,134 
Other 
revenues 
92,881 
69,285 
89,119 
Total 
revenues 
8,899,476 
8,455,516 
8,081,911 
Operating 
expenses 
8,722,596 
8,505,101 
8,066,377 
Nonoperating 
expenses 
355,838 
984,756 
351,619 
Total 
expenses 
9,078,434 
9,489,857 
8,417,996 
Change 
in 
net 
assets 
$ 
(178,958) 
(1,034,341) 
(336,085) 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Management�s 
Discussion 
and 
Analysis 


Total 
revenues 
reported 
in 
2010, 
2009, 
and 
2008 
were 
$8.90 
billion, 
$8.46 
billion, 
and 
$8.08 
billion, 
respectively. 
Total 
revenue 
in 
2010 
and 
2009 
increased 
$444 
million 
and 
$374 
million 
compared 
to 
the 
previous 
years. 
The 
revenue 
increase 
in 
2010 
was 
driven 
by 
increases 
of 
$154 
million 
in 
hospital 
and 
clinic 
revenue, 
$99 
million 
in 
federal 
and 
state 
student 
financial 
aid 
grants, 
net 
tuition 
revenues 
of 
$77 
million, 
$73 
million 
in 
federal 
grants 
and 
contracts, 
$64 
million 
in 
net 
realized 
and 
unrealized 
investment 
gains, 
and 
$56 
million 
in 
private 
and 
capital 
gifts. 
These 
increases 
were 
offset 
by 
a 
$97 
million 
decrease 
in 
state 
appropriations. 


Total 
expenses 
for 
2010, 
2009, 
and 
2008 
were 
$9.08 
billion, 
$9.49 
billion, 
and 
$8.42 
billion, 
respectively. 
Total 
expense 
in 
2010 
decreased 
$411 
million 
while 
expense 
in 
2009 
increased 
$1.07 
billion, 
compared 
to 
the 
previous 
year. 
The 
expense 
decline 
in 
2010 
compared 
to 
the 
prior 
year 
was 
primarily 
due 
to 
investment 
losses 
of 
$389 
million 
and 
the 
transfer 
of 
assets 
to 
the 
State 
University 
campus 
foundations 
of 
$288 
million 
in 
2009 
offset 
by 
an 
increase 
of 
$217 
million 
in 
2010 
operating 
expenses. 


Overview 
of 
the 
Financial 
Statements 


The 
financial 
statements 
of 
the 
State 
University 
have 
been 
prepared 
in 
accordance 
with 
U.S. 
generally 
accepted 
accounting 
principles 
as 


Changes 
in 
Net 
Assets 
present 
information 
showing 
the 
change 
in 
the 
State 
University�s 
net 
assets 
during 
each 
fiscal 
year. 
All 
changes 
in 
net 
assets 
are 
reported 
as 
soon 
as 
the 
underlying 
event 
giving 
rise 
to 
the 
change 
occurs, 
regardless 
of 
the 
timing 
of 
related 
cash 
flows. 
Thus, 
revenues 
and 
expenses 
reported 
in 
these 
statements 
include 
items 
that 
will 
result 
in 
cash 
received 
or 
disbursed 
in 
future 
fiscal 
periods 
(e.g., 
the 
receipt 
of 
amounts 
due 
from 
stu-

dents 
and 
others 
for 
services 
rendered, 
or 
the 
amount 
accrued 
for 
postemployment 
benefit 
earned). 


The 
Statements 
of 
Cash 
Flows 
provides 
infor-
mation 
on 
the 
major 
sources 
and 
uses 
of 
cash 
during 
the 
year. 
The 
cash 
flow 
statements 
portray 
net 
cash 
provided 
or 
used 
from 
operating, 
investing, 
capital, 
and 
noncapital 
financing 
activities. 


Balance 
Sheets 


The 
balance 
sheets 
present 
the 
financial 
position 
of 
the 
State 
University 
at 
the 
end 
of 
its 
fiscal 
years. 
The 
State 
University�s 
total 
assets 
in 
2010 
increased 
$942 
million 
while 
total 
assets 
in 
2009 
decreased 
$225 
million, 
compared 
to 
the 
previous 
year. 
Total 
liabilities 
during 
2010 
and 
2009 
increased 
$1.12 
billion 
and 
$810 
million, 
respectively. 
The 
following 
table 
reflects 
the 
financial 
position 
at 
June 
30, 
2010, 
2009, 
and 
2008 
(in 
thousands): 


4
prescribed 
by 
the 
GASB. 
The 
financial 
statement 
presentation 
consists 
of 
comparative 
balance 
sheets, 
statements 
of 
revenues, 
expenses, 
and 
changes 
in 
net 
assets, 
statements 
of 
cash 
flows, 
and 
accompanying 
notes 
for 
the 
June 
30, 
2010 
and 
2009 
fiscal 
years. 
These 
statements 
provide 
information 
on 
the 
financial 
position 
of 
the 
State 
University 
and 
the 
financial 
activity 
and 
results 
of 
its 
operations 
during 
the 
years 
presented. 
A 
description 
of 
these 
statements 
follows: 


The 
Balance 
Sheets 
present 
information 
on 
all 
of 
the 
State 
University�s 
assets 
and 
liabilities, 
with 
the 
difference 
between 
the 
two 
reported 
as 
net 
assets. 
Over 
time, 
increases 
or 
decreases 
in 
net 
assets 
may 
serve 
as 
a 
useful 
indicator 
of 
whether 
the 
financial 
position 
of 
the 
State 
University 
is 
improving 
or 
deteriorating. 


The 
Statements 
of 
Revenues, 
Expenses, 
and 


2010 
2009 
2008 


Current 
assets 
$ 
3,017,319 
2,828,996 
2,756,467 
Capital 
assets, 
net 
7,076,233 
6,235,899 
5,744,812 
Other 
noncurrent 
assets 
1,773,139 
1,859,604 
2,647,822 


Total 
assets 
11,866,691 
10,924,499 
11,149,101 
Current 
liabilities 
1,804,039 
1,674,262 
1,719,058 


Noncurrent 
liabilities 
9,344,407 
8,353,034 
7,498,499 
Total 
liabilities 
11,148,446 
10,027,296 
9,217,557 
Net 
assets 
$ 
718,245 
897,203 
1,931,544 


Current 
Assets 


Current 
assets 
at 
June 
30, 
2010 
increased 
$188 
million 
and 
current 
liabilities 
$130 
million, 
compared 
to 
the 
previous 
year. 
In 
general, 
current 
assets 
are 
those 
assets 
that 
are 
available 
to 
satisfy 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Management�s 
Discussion 
and 
Analysis 


current 
liabilities 
(i.e., 
those 
that 
will 
be 
paid 
within 
one 
year). 


Current 
assets 
at 
June 
30, 
2010 
and 
2009 
consist 
primarily 
of 
cash 
and 
cash 
equivalents 
of 
$1.39 
billion 
and 
$1.23 
billion, 
short-term 
investments 
of 
$296 
million 
in 
both 
years, 
and 
receivables 
(accounts, 
interest, 
appropriations, 
and 
grants) 
of 
$1.26 
billion 
and 
$1.24 
billion, 
respectively. 
During 
2010, 
cash 
and 
cash 
equivalents 
increased 
$158 
million 
and 
receivable 
balances 
increased 
$25 
million. 


Current 
Liabilities 


Current 
liabilities 
at 
June 
30, 
2010 
and 
2009 
consist 
principally 
of 
accounts 
payable 
and 
accrued 
expenses 
of 
$772 
million 
and 
$602 
million, 
interest 
on 
debt 
of 
$128 
million 
and 
$162 
million, 
deferred 
revenue 
of 
$190 
million 
and 
$254 
million, 
and 
the 
current 
portion 
of 
long-term 
liabilities 
of 
$561 
million 
and 
$504 
million, 
respectively. 
The 
increase 
in 
current 
liabilities 
at 
June 
30, 
2010 
was 
driven 
principally 
by 
an 
increase 
in 
accounts 
payable 
of 
$170 
million 
primarily 
due 
to 
the 
timing 
of 
capital 
project 
payments 
and 
operating 
expenses. 


Capital 
Assets, 
net 


Since 
2003, 
the 
State 
University 
has 
received 
$5.8 
billion 
in 
cumulative 
new 
multi-year 
capital 
funding 
authorizations 
for 
State-operated 
campus 
education-
al 
facilities 
and 
$869 
million 
for 
the 
State 
University 
hospitals. 
Under 
the 
educational 
facilities 
program, 
a 
majority 
of 
the 
funding 
is 
designed 
to 
support 
crit-
ical 
maintenance 
projects 
to 
repair, 
renovate, 
or 
reha-
bilitate 
existing 
State 
University 
facilities. 


During 
the 
2010 
and 
2009 
fiscal 
years, 
capital 
assets 
(net 
of 
depreciation) 
increased 
$840 
million 
and 
$491 
million, 
respectively. 
The 
majority 
of 
the 
increase 
occurred 
at 
the 
State 
University 
campuses 
due 
to 
new 
building 
construction, 
renovations, 
and 
rehabilitation 
totaling 
$691 
million 
and 
$386 
mil-
lion 
for 
the 
2010 
and 
2009 
fiscal 
years, 
respectively. 
Equipment 
additions 
during 
2010 
and 
2009 
of 
$190 
million 
and 
$173 
million, 
respectively, 
also 
contributed 
to 
the 
increase. 


Significant 
projects 
completed 
and 
capitalized 
during 
the 
2010 
fiscal 
year 
included 
construction 
of 


a 
new 
residence 
hall 
apartment 
complex 
and 
the 
Center 
of 
Excellence 
in 
Wireless 
and 
Information 
Technology 
(CEWIT) 
facility 
at 
Stony 
Brook 
University, 
the 
New 
School 
of 
Education 
with 
an 
integrated 
child 
care 
center 
at 
the 
College 
at 
Cortland, 
completion 
of 
a 
six 
story 
vertical 
expansion 
of 
Upstate 
Medical 
Hospital�s 
East 
wing, 
the 
Distance 
Learning 
Center 
for 
Empire 
State 
College, 
the 
purchase 
and 
renovation 
of 
the 
Rochester 
Equal 
Opportunity 
Center 
by 
the 
College 
at 
Brockport, 
along 
with 
the 
renovation 
of 
the 
State 
and 
Indian 
Quad 
Dining 
Halls 
at 
the 
University 
at 
Albany 
and 
the 
Major 
Modernization 
project 
of 
Stony 
Brook 
University�s 
Medical 
Center. 


A 
summary 
of 
capital 
assets, 
by 
major 
classification, 
and 
related 
accumulated 
depreciation 
for 
the 
2010, 
2009, 
and 
2008 
fiscal 
years 
is 
as 
follows 
(in 
thousands): 


5
2010 
2009 
2008 
Land 
Infrastructure 
and 
$ 
360,769 
313,175 
301,862 
land 
improvements 
Buildings 
738,307 
7,331,241 
664,602 
6,684,860 
593,877 
6,337,676 
Equipment, 
library 
books 
and 
artwork 
Construction 
in 
progress 
Total 
capital 
assets 
2,545,649 
1,364,476 
12,340,442 
2,450,532 
1,125,153 
11,238,322 
2,334,476 
901,084 
10,468,975 
Less 
accumulated 
depreciation: 
Infrastructure 
and 
land 
improvements 
Buildings 
Equipment, 
library 
books 
and 
artwork 
365,610 
3,074,299 
1,824,300 
348,464 
2,923,117 
1,730,842 
334,785 
2,787,220 
1,602,158 
Total 
accumulated 
depreciation 
5,264,209 
5,002,423 
4,724,163 
Capital 
assets, 
net 
$ 
7,076,233 
6,235,899 
5,744,812 


Other 
Noncurrent 
Assets 


Other 
noncurrent 
assets 
exclusive 
of 
capital 
assets 
were 
$1.77 
billion 
and 
$1.86 
billion 
at 
June 
30, 
2010 
and 
2009, 
respectively. 
Noncurrent 
assets 
at 
June 
30, 
2010 
and 
2009 
include 
long-term 
investments 
of 
$575 
million 
and 
$584 
million, 
deposits 
with 
trustees 
of 
$584 
million 
and 
$803 
million, 
restricted 
cash 
of 
$83 
million 
and 
$98 
million, 
and 
the 
noncurrent 
portion 
of 
receivables 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Management�s 
Discussion 
and 
Analysis 


6
and 
deferred 
financing 
costs 
of 
$531 
million 
and 
$374 
million, 
respectively. 


Long-term 
investments 
at 
June 
30, 
2010 
and 
2009 
of 
$575 
million 
and 
$584 
million 
include 
the 
Cornell 
statutory 
colleges 
of 
$493 
million 
and 
$482 
million, 
Research 
Foundation 
of 
$38 
million 
and 
$60 
million, 
auxiliary 
services 
corporations 
of 
$25 
million 
and 
$24 
million, 
and 
the 
statutory 
College 
of 
Ceramics 
at 
Alfred 
University 
of 
$17 
million 
and 
$16 
million, 
respectively, 
and 
State 
University 
Endowment 
Fund 
had 
$2 
million 
for 
both 
years. 
As 
a 
result 
of 
amounts 
used 
to 
meet 
spending 
needs, 
long-term 
investments 
decreased 
by 
a 
total 
of 
$8 
million 
in 
2010 
compared 
to 
2009. 


During 
fiscal 
year 
2010, 
deposits 
with 
trustees, 
which 
generally 
represent 
funds 
available 
from 
the 
issuance 
of 
bonds 
by 
the 
Dormitory 
Authority 
of 
the 
State 
of 
New 
York 
(DASNY) 
used 
to 
finance 
capital 
projects 
and 
maintain 
debt 
service 
reserves 
for 
the 
State 
University�s 
facilities, 
decreased 
$220 
million. 


Restricted 
cash 
and 
cash 
equivalents 
represent 
unspent 
funds 
under 
various 
capital 
financing 
arrangements, 
cash 
held 
for 
others, 
and 
cash 
restricted 
for 
loan 
programs. 
At 
June 
30, 
2010 
restricted 
cash 
balances 
decreased 
$15 
million 
compared 
to 
2009. 
The 
noncurrent 
portion 
of 
receivables 
reported 
at 
June 
30, 
2010 
and 
2009 
consisted 
of 
accounts, 
notes, 
and 
loan 
receivables 
of 
$112 
million 
and 
$115 
million, 
appropriation 
receivables 
of 
$316 
million 
and 
$165 
million, 
and 
contribution 
receivables 
of 
$14 
million 
and 
$22 
million, 
respectively. 


Noncurrent 
Liabilities 


Noncurrent 
liabilities 
at 
June 
30, 
2010 
and 
2009 
of 
$9.34 
billion 
and 
$8.35 
billion, 
respectively, 
are 
largely 
comprised 
of 
debt 
on 
State 
University 
facilities, 
other 
long-term 
liabilities 
accrued 
for 
postemployment 
and 
post-retirement 
benefits, 
compensated 
absences, 
and 
litigation, 
as 
well 
as 
an 
outstanding 
loan 
from 
the 
State�s 
short-term 
investment 
pool 
(STIP). 
The 
State 
University 
capital 
funding 
levels 
and 
bonding 
authority 
are 
subject 
to 
operating 
and 
capital 
appropriations 
of 
the 
State. 
Funding 
for 
capital 
construction 
and 
rehabilitation 
of 
educational 
and 
residence 
hall 
facilities 
of 
the 
State 
University 
is 
provided 
principally 
through 
the 
issuance 
of 
bonds 
by 


DASNY. 
The 
debt 
service 
for 
the 
educational 
facilities 
is 
paid 
by, 
or 
provided 
through 
a 
direct 
appropriation 
of, 
the 
State. 
The 
debt 
service 
on 
residence 
hall 
bonds 
is 
funded 
primarily 
from 
room 
rents. 
A 
summary 
of 
non-current 
long-term 
liabilities 
at 
June 
30, 
2010, 
2009, 
and 
2008 
is 
as 
follows 
(in 
thousands): 


2010 
2009 
2008 


Educational 
facilities 
$ 
5,242,937 
4,907,472 
4,591,499 
Residence 
hall 
facilities 
1,011,580 
943,590 
845,385 
Postemployment 
and 


post-retirement 
obligations 


and 
compensated 
absences 
2,225,754 
1,765,603 
1,375,277 
Loan 
-State 
STIP 
pool 
43,401 
68,754 
92,934 
Other 
obligations 
621,388 
467,778 
409,124 


Long-term 
liabilities 
$ 
9,145,060 
8,153,197 
7,314,219 


During 
the 
year, 
Personal 
Income 
Tax 
Revenue 
Bonds 
(PIT) 
were 
issued 
for 
the 
purpose 
of 
financing 
capital 
construction 
and 
major 
rehabilitation 
for 
educational 
facilities 
in 
the 
amount 
of 
$585.6 
million. 
Also, 
during 
the 
year 
PIT 
bonds 
were 
issued 
totaling 
$368.1 
million 
in 
order 
to 
refund 
$402.3 
million 
of 
the 
State 
University�s 
existing 
educational 
facilities 
obligations. 
The 
result 
will 
produce 
an 
estimated 
gain 
of 
$34 
million 
in 
future 
cash 
flow, 
with 
an 
estimated 
present 
value 
gain 
of 
$32 
million. 
The 
deferred 
accounting 
loss 
was 
$9.4 
million. 


In 
June 
2010, 
the 
State 
University 
entered 
into 
agreements 
with 
DASNY 
to 
issue 
obligations 
totaling 
$800 
million 
for 
the 
construction 
and 
rehabilitation 
of 
the 
State 
University�s 
educational 
facilities. 
The 
State 
University 
also 
entered 
into 
agreements 
with 
DASNY 
during 
fiscal 
year 
2010 
to 
issue 
residence 
hall 
facility 
obligations 
totaling 
$100.1 
million 
for 
the 
purpose 
of 
financing 
capital 
construction 
and 
major 
rehabilitation 
for 
residential 
hall 
facilities. 


During 
the 
year, 
Fitch 
Ratings 
and 
Moody�s 
Investor 
Services 
recalibrated 
certain 
U.S. 
public 
finance 
credit 
ratings 
and 
U.S. 
municipal 
ratings. 
The 
recalibration 
generally 
resulted 
in 
raising 
the 
public 
higher 
education 
ratings 
one 
notch 
from 
the 
previous 
ratings 
(e.g., 
AA-to 
AA). 
As 
a 
result, 
Moody�s 
and 
Fitch 
PIT 
bonds 
were 
adjusted 
from 
Aa3 
to 
Aa2 
and 
AA-to 
AA, 
educational 
facilities 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Management�s 
Discussion 
and 
Analysis 


bonds 
from 
A1 
to 
Aa3 
and 
A+ 
to 
AA-, 
and 
residence 
hall 
bonds 
from 
Aa3 
to 
Aa2 
and 
A+ 
to 
AA-, 
respectively. 
These 
recalibrations 
are 
not 
upgrades. 
The 
State 
University�s 
credit 
ratings 
for 
educational 
and 
residence 
hall 
bonds 
at 
June 
30, 
2010 
are 
as 
follows: 


PIT 
Educational 
Residence 
Bonds 
Facilities 
Halls 
Moody�s 
Investors 
Service 
Aa2 
Aa3 
Aa2 
Standard 
& 
Poor�s 
AAA 
AA-AA-
Fitch 
AA 
AA-AA-

Principal 
payments 
on 
educational 
and 
residence 
hall 
facilities 
obligations 
made 
during 
2010 
totaled 
$594 
million 
and 
$31 
million, 
in 
2009 
totaled 
$229 
million 
and 
$28 
million, 
and 
in 
2008 
totaled 
$184.4 
million 
and 
$24.3 
million, 
respectively. 


During 
fiscal 
years 
2010 
and 
2009, 
the 
long-term 
portion 
of 
postemployment 
and 
post-retirement 
benefit 
obligations 
and 
compensated 
absences 
liabilities 
increased 
$460 
million 
and 
$390 
million, 
respectively. 
The 
State, 
on 
behalf 
of 
the 
State 
University, 
provides 
health 
insurance 
coverage 
for 
eligible 
retired 
State 
University 
employees 
and 
their 
spouses 
as 
part 
of 
the 
New 
York 
State 
Health 
Insurance 
Plan 
(NYSHIP). 
The 
State 
administers 
NYSHIP 
and 
has 
the 
authority 
to 
establish 
and 
amend 
benefit 
provisions 
offered. 
The 
State 
University, 
as 
a 
participant 
in 
the 
plan, 
recognizes 
these 
other 
postemployment 
benefits 
(OPEB) 
on 
an 
accrual 
basis. 
The 
State 
University�s 
OPEB 
plan 
is 
financed 
annually 
on 
a 
pay-as-you-go 
basis. 
There 
are 
no 
assets 
set 
aside 
to 
fund 
the 
plan. 
The 
actuarial 
accrued 
liability 
(AAL) 
and 
the 
unfunded 
AAL, 
utilizing 
the 
frozen 
entry 
age 
actuarial 
cost 
method, 
as 
of 
April 
1, 
2008 
was 
$9.56 
billion. 
The 
State 
University�s 
total 
retirement 
related 
payroll 
during 
fiscal 
years 
2010 
and 
2009 
was 
$3.0 
billion 
and 
$2.8 
billion, 
respectively. 
The 
total 
unfunded 
actuarial 
accrued 
liability 
as 
a 
percentage 
of 
covered 
payroll, 
based 
on 
the 
2008 
actuarial 
valuation 
date, 
was 
318 
percent 
and 
341 
percent 
for 
2010 
and 
2009, 
respectively. 


The 
Research 
Foundation 
sponsors 
a 
separate 
defined 
benefit 
OPEB 
plan. 
Contributions 
are 
made 
by 
the 
Research 
Foundation 
pursuant 
to 
a 
funding 
policy 
established 
by 
its 
Board 
of 
Directors. 
In 


2009, 
a 
Voluntary 
Employee 
Benefit 
Association 
(VEBA) 
trust 
was 
established 
and 
legal 
title 
to 
all 
the 
assets 
in 
the 
trust 
is 
vested 
in 
the 
trust 
for 
the 
benefit 
of 
the 
participants. 
The 
Research 
Foundation�s 
total 
retirement 
related 
payroll 
during 
the 
2010, 
2009, 
and 
2008 
fiscal 
years 
was 
$237.8 
million, 
$233.7 
million, 
and 
$224.2 
million, 
respectively. 
The 
total 
unfunded 
actuarial 
accrued 
liability 
as 
of 
the 
June 
30, 
2010, 
2009, 
and 
2008 
was 
$211 
million, 
$188.8 
million, 
and 
$233 
million 
or 
89 
percent, 
81 
percent, 
and 
104 
percent 
of 
the 
total 
retirement 
related 
payroll 
expense 
of 
the 
Research 
Foundation 
for 
the 
respective 
fiscal 
years. 


In 
prior 
years, 
the 
State 
University 
experienced 
operating 
cash-flow 
deficits 
precipitated 
by 
cash-
flow 
difficulties 
experienced 
by 
its 
three 
hospitals. 
As 
a 
result, 
the 
State 
University 
borrowed 
funds 
with 
interest 
from 
the 
short-term 
investment 
pool 
of 
the 
State. 
The 
amount 
outstanding 
under 
this 
borrowing, 
including 
accrued 
interest, 
at 
June 
30, 
2010 
and 
2009 
was 
$61 
million 
and 
$86 
million, 
respectively. 
During 
fiscal 
years 
2010 
and 
2009, 
the 
total 
amount 
paid 
on 
these 
loans 
was 
$25.6 
million 
in 
both 
years. 


Refundable 
government 
loan 
funds 
at 
June 
30, 
2010 
and 
2009 
totaled 
$141.4 
million 
and 
$146.3 
million, 
respectively. 
These 
revolving 
loan 
funds 
are 
principally 
those 
of 
the 
federal 
Perkins 
and 
Nursing 
Loan 
Programs 
established 
with 
an 
initial 
and 
continued 
federal 
capital 
contribution. 
Repayments 
of 
principal 
and 
interest 
and 
new 
contributions 
are 
deposited 
into 
a 
revolving 
loan 
fund 
for 
continual 
disbursement 
to 
students. 


Statements 
of 
Revenues, 
Expenses, 
and 
Changes 
in 
Net 
Assets 


The 
statements 
of 
revenues, 
expenses, 
and 
changes 
in 
net 
assets 
present 
the 
State 
University�s 
results 
of 
operations. 
Total 
operating 
revenues 
of 
the 
State 
University 
were 
$5.16 
billion 
in 
2010, 
$4.81 
billion 
in 
2009, 
and 
$4.40 
billion 
in 
2008. 
Nonoperating 
and 
other 
revenues, 
which 
includes 
State 
appropriations, 
totaled 
$3.74 
billion, 
$3.65 
billion, 
and 
$3.68 
billion, 
for 
fiscal 
years 
2010, 
2009, 
and 
2008, 
respectively. 
Total 
expenses 
for 
2010, 
2009, 
and 
2008 
were 
$9.08 
billion, 
$9.49 
billion, 
and 
$8.42 
billion, 
respectively. 


7

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Management�s 
Discussion 
and 
Analysis 


Revenue 
Overview 


Revenues 
(in 
thousands): 


Tuition 
and 
fees, 
net 
Hospitals 
and 
clinics 
Federal 
grants 
and 
contracts 
State, 
local, 
private 
grants 
and 


contracts, 
and 
other 
sources 
Auxiliary 
enterprises 


Operating 
revenues 
State 
appropriations 
Other 
nonoperating 


Nonoperating 
and 
other 
revenues 
Total 
revenues 


2010 
2009 
2008 


$ 
1,107,313 
1,030,198 
952,075 
1,876,918 
1,723,164 
1,595,895 
710,642 
637,222 
639,998 


649,772 
634,500 
483,777 


818,545 
780,300 
730,913 
5,163,190 
4,805,384 
4,402,658 
2,965,719 
3,062,915 
2,970,720 


770,567 
587,217 
708,533 


3,736,286 
3,650,132 
3,679,253 
$ 
8,899,476 
8,455,516 
8,081,911 


8
Tuition 
and 
Fees, 
Net 


Tuition 
and 
fee 
revenue 
for 
the 
2010, 
2009, 
and 
2008 
fiscal 
years, 
net 
of 
scholarship 
allowances, 
was 
$1.11 
billion, 
$1.03 
billion, 
and 
$952 
million, 
an 
increase 
of 
$77 
million 
and 
$78 
million 
in 
2010 
and 
2009, 
respectively. 
The 
increases 
in 
2010 
and 
2009 
were 
driven 
by 
increases 
in 
enrollment. 
During 
the 
2009 
fiscal 
year 
there 
was 
also 
a 
mid-year 
tuition 
rate 
increase 
effective 
for 
the 
spring 
semester. 
Annual 
average 
full-time 
equivalent 
students, 
including 
undergraduate 
and 
graduate, 
were 
approximately 
192,100, 
189,600, 
and 
185,700 
for 
the 
fiscal 
years 
ended 
June 
30, 
2010, 
2009, 
and 
2008, 
respectively. 


2010Revenues(inthousands)
StateAppropriations$2,965,719HospitalsandClinics$1,876,918TuitionandFees$1,107,313FederalGrantsandContracts$710,642State,Local,PrivateGrants,ContractsandOtherSources$649,772OtherNonoperating$770,567AuxiliaryEnterprises$818,545
Hospitals 
and 
Clinics 


The 
State 
University 
has 
three 
hospitals 
(each 
with 
academic 
medical 
centers) 
under 
its 
jurisdiction 
the 
State 
University 
hospitals 
at 
Brooklyn, 
Stony 
Brook, 
and 
Syracuse. 


Hospital 
and 
clinic 
revenue 
for 
the 
2010, 
2009, 
and 
2008 
fiscal 
years 
were 
$1.88 
billion, 
$1.72 
billion, 
and 
$1.60 
billion, 
respectively. 
During 
the 
2010 
fiscal 
year, 
hospital 
and 
clinic 
revenues 
increased 
$154 
million 
compared 
to 
the 
previous 
year 
due 
to 
an 
increase 
in 
inpatient 
and 
outpatient 
revenue 
and 
a 
$35 
million 
increase 
in 
Medicaid 
Disproportionate 
Share 
(DSH) 
Program 
revenue. 


Sponsored 
Research, 
Grant 
and 
Contract 
Revenue 


During 
fiscal 
year 
2010, 
State 
University 
increased 
its 
volume 
of 
sponsored 
program 
activity. 
Total 
revenue 
from 
federal, 
state, 
local, 
private 
and 
capital 
grants 
and 
contracts 
administered 
by 
the 
Research 
Foundation 
was 
$893 
million, 
$846 
million, 
and 
$794 
million 
for 
the 
fiscal 
years 
ended 
June 
30, 
2010, 
2009, 
and 
2008, 
respectively. 
Facilities 
and 
administrative 
recoveries 
earned 
on 
grants 
and 
contracts 
administered 
by 
the 
Research 
Foundation 
were 
$145 
million, 
$125 
million, 
and 
$127 
million 
for 
the 
fiscal 
periods 
ending 
June 
30, 
2010, 
2009, 
and 
2008, 
respectively. 


The 
volume 
of 
research 
and 
other 
sponsored 
programs 
reported 
for 
2010 
and 
2009 
by 
the 
statutory 
colleges 
at 
Cornell 
University 
was 
$226.8 
million 
and 
$176.1 
million, 
and 
Alfred 
University 
was 
$1.5 
million 
and 
$3.9 
million, 
respectively. 


Revenue 
from 
projects 
sponsored 
by 
the 
federal 
government 
(including 
federal 
flow-through 
funds) 
and 
administered 
by 
the 
Research 
Foundation 
totaled 
$559 
million 
and 
$507 
million 
during 
2010 
and 
2009, 
respectively. 
Of 
these 
federally-sponsored 
projects 
the 
Department 
of 
Health 
and 
Human 
Services 
was 
the 
largest 
sponsor 
for 
both 
fiscal 
years. 
Revenue 
from 
non-federal 
sponsors 
administered 
by 
the 
Research 
Foundation 
totaled 
$334 
million 
and 
$339 
million 
during 
2010 
and 
2009, 
respectively. 
In 
fiscal 
years 
2010 
and 
2009, 
the 
largest 
non-
federal 
support 
of 
sponsored 
research 
programs 
was 
received 
from 
the 
Empire 
State 
Development 
Corporation. 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Management�s 
Discussion 
and 
Analysis 


Amounts 
received 
under 
the 
State�s 
Tuition 
Assistance 
Program 
increased 
$12 
million 
from 
the 
prior 
year. 
Federal 
grants 
under 
the 
Pell 
and 
other 
federal 
student 
aid 
programs 
increased 
$79 
million 
from 
the 
previous 
year. 


Auxiliary 
Enterprises 


The 
State 
University�s 
auxiliary 
enterprise 
activity 
is 
comprised 
of 
sales 
and 
services 
for 
residence 
halls, 
food 
services, 
campus 
store 
operations, 
intercollegiate 
athletics, 
student 
health 
services, 
parking, 
and 
other 
activities. 
The 
residence 
halls 
are 
generally 
owned, 
operated 
and 
managed 
by 
the 
State 
University 
and 
its 
campuses. 
Generally, 
food 
services, 
campus 
store 
operations 
and 
other 
services 
are 
operated 
and 
managed 
by 
separately 
incorporated 
not-for-profit 
organizations, 
commonly 
referred 
to 
as 
auxiliary 
services 
corporations. 


The 
residence 
hall 
operations 
and 
capital 
programs 
are 
financially 
self-sufficient. 
Each 
campus 
is 
responsible 
for 
the 
operation 
of 
its 
residence 
halls 
program 
including 
setting 
room 
rates 
and 
covering 
operating, 
maintenance, 
capital 
and 
debt 
service 
costs. 
Any 
excess 
funds 
generated 
by 
residence 
halls 
operating 
activities 
are 
separately 
maintained 
for 
improvements 
and 
maintenance 
of 
the 
residence 
hall. 
Revenue 
producing 
occupancy 
at 
the 
residence 
halls 
is 
71,758 
for 
the 
fall 
of 
2009, 
a 
decrease 
of 
983 
students 
compared 
to 
the 
previous 
year. 
The 
overall 
utilization 
rate 
for 
the 
fall 
of 
2009 
and 
2008 
was 
reported 
at 
96.7 
percent 
for 
both 
years. 


Auxiliary 
enterprise 
sales 
and 
services 
revenue 
totaled 
$819 
million, 
$780 
million, 
and 
$731 
million 
in 
the 
2010, 
2009, 
and 
2008 
fiscal 
years, 
respectively. 
Of 
these 
amounts, 
residence 
halls 
operating 
revenue 
totaled 
$370 
million, 
$354 
million, 
and 
$325 
million 
for 
2010, 
2009, 
and 
2008, 
respectively. 
Increases 
in 
revenue 
were 
largely 
due 
to 
modest 
increases 
in 
room 
rates 
and 
stable 
occupancy 
levels. 


Food 
service 
operations 
and 
other 
auxiliary 
services 
each 
generated 
$449 
million, 
$426 
million, 
and 
$406 
million 
in 
revenue 
for 
fiscal 
years 
2010, 
2009, 
and 
2008, 
respectively. 


State 
Appropriations 


The 
State 
University�s 
single 
largest 
source 
of 
revenues 
are 
State 
appropriations, 
which 
for 
financial 
reporting 
purposes 
is 
classified 
as 
non-
operating 
revenues. 
State 
appropriations 
totaled 
$2.97 
billion, 
$3.06 
billion, 
and 
$2.97 
billion 
and 
represented 
approximately 
33 
percent, 
36 
percent, 
and 
37 
percent 
of 
total 
revenues 
for 
fiscal 
year 
2010, 
2009, 
and 
2008, 
respectively. 
State 
support 
(both 
direct 
support 
for 
operations 
and 
indirect 
support 
for 
debt 
service, 
litigation, 
and 
fringe 
benefits) 
for 
State 
University 
campus 
operations, 
statutory 
colleges, 
and 
hospitals 
and 
clinics 
decreased 
$97 
million 
in 
2010 
and 
increased 
$92 
million 
in 
2009, 
compared 
to 
the 
prior 
year. 
In 
2010, 
State 
support 
for 
operating 
expenses 
decreased 
$192 
million, 
while 


indirect 
State 
support 
for 
debt 
benefits, 
and 
litigation 
expenses 
million 
compared 
to 
2009. 
service, 
fringe 
increased 
$95 
Nonoperating 
and 
Other 
Revenue 


Nonoperating 
and 
other 
revenue 
excluding 
State 
appropriations 
were 
$771 
million 
and 
$587 
million 
for 
the 
2010 
and 
2009 
fiscal 
years, 
respectively. 
This 
increase 
was 
primarily 
due 
to 
increases 
of 
$99 
million 
in 
federal 
and 
state 
student 
financial 
aid 
grant 
programs, 
$64 
million 
in 
net 
realized 
and 
unrealized 
investment 
gains, 
$56 
million 
in 
private 
and 
capital 
gifts, 
offset 
by 
a 
decrease 
of 
$30 
million 
in 
investment 
income. 


Expense 
Overview 


9
Expenses 
(in 
thousands): 
2010 
2009 
2008 
Instruction 
$ 
2,041,660 
2,044,597 
1,974,050 
Research 
663,353 
687,724 
567,944 
Public 
service 
294,999 
298,122 
298,233 
Support 
services 
2,099,496 
2,090,135 
2,150,881 
Scholarships 
and 
fellowships 
172,150 
125,965 
119,123 
Hospitals 
and 
clinics 
2,227,162 
2,082,902 
1,822,506 
Auxiliary 
enterprises 
791,733 
775,162 
757,902 
Depreciation 
and 
amortization 
432,043 
400,494 
375,738 
Other 
nonoperating 
355,838 
984,756 
351,619 
Total 
expenses 
$ 
9,078,434 
9,489,857 
8,417,996 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Management�s 
Discussion 
and 
Analysis 


2010 
Expenses 
(in 
thousands) 


Instruction 
$2,041,660 


Other 
Nonoperating 
$355,838 


Scholarships 
and 
Fellowships 
$172,150 


Depreciation 
$432,043 


Auxiliary 
Enterprises 



Support 
Services 
$2,099,496 


Public 
Service 
$294,999 


Hospitals 
and 
Clinics 


Research 
$2,227,162 


$791,733 


$663,353 


Instruction 
expenses 
remained 
flat 
during 
2010 
compared 
to 
2009. 
The 
increase 
in 
instruction 
expense 
of 
$71 
million 
during 
2009 
compared 
to 
2008 
is 
predominately 
from 
an 
increase 
in 
personal 
service 
and 
related 
fringe 
benefit 
expenses. 
Research 
expenses 
decreased 
$24 
million 
during 
2010 
compared 
to 
2009 
and 
increased 
$120 
million 
in 
2009 
compared 
to 
2008. 


Support 
services, 
which 
includes 
expenses 
for 
academic 
support, 
student 
services, 
institutional 
support, 
and 
operation 
and 
maintenance 
of 
plant, 
increased 
$9 
million 
during 
2010 
compared 
to 
2009. 
Support 
services 
expenses 
decreased 
$61 
million 
in 
2009 
compared 
to 
2008. 


In 
the 
State 
University�s 
financial 
statements, 
scholarships 
used 
to 
satisfy 
student 
tuition 
and 
fees 
(residence 
hall, 
food 
service, 
etc.) 
are 
reported 
as 
an 
allowance 
(offset) 
to 
the 
respective 
revenue 
classification 
up 
to 
the 
amount 
of 
the 
student 
charges. 
The 
amount 
reported 
as 
expense 
represents 
amounts 
provided 
to 
the 
student 
in 
excess 
of 
State 
University 
charges. 


Total 
scholarships 
and 
fellowships, 
including 
federal 
and 
state 
grant 
programs, 
were 
$747 
million 
and 
$617 
million 
for 
the 
fiscal 
years 
ended 
June 
30, 
2010 
and 
2009, 
respectively. 
Of 
this 
amount, 
$575 
million 
and 
$491 
million 
were 
classified 
as 
scholar-
ship 
allowances 
and 
$172 
million 
and 
$126 
million 
was 
reported 
as 
scholarship 
expense 
for 
fiscal 
years 
2010 
and 
2009, 
respectively. 
Major 
scholarships 
and 


grants 
received 
include 
the 
State 
Tuition 
Assistance 
Program 
of 
$195 
million 
and 
$183 
million, 
and 
the 
federal 
Pell 
Program 
of 
$244 
million 
and 
$174 
million 
during 
fiscal 
years 
2010 
and 
2009, 
respectively. 


Expenses 
at 
the 
State 
University�s 
hospitals 
and 
clinics 
increased 
$144 
million 
and 
$260 
million 
during 
2010 
and 
2009, 
respectively, 
largely 
due 
to 
an 
increase 
in 
core 
operating 
and 
personal 
service 
costs. 
Also 
contributing 
to 
the 
growth 
in 
2010 
was 
an 
increase 
of 
$82 
million 
in 
litigation 
expenses. 


During 
fiscal 
years 
2010 
and 
2009, 
auxiliary 
enterprise 
expenses 
increased 
$17 
million 
for 
both 
years. 
For 
the 
2010 
fiscal 
year 
residence 
halls 
expenses 
increased 
$4 
million, 
compared 
to 
a 
decrease 
of 
$1 
million 
from 
2008 
to 
2009. 
Food 
service 
expenses 
increased 
$10 
million 
and 
$9 
million, 
respectively, 
primarily 
due 
to 
an 
increase 
in 
enrolled 
students. 
Other 
auxiliary 
enterprise 
expenses 
for 
the 
years 
ended 
June 
30, 
2010 
and 
2009 
increased 
$2 
million 
and 
$9 
million, 
respectively. 


Depreciation 
and 
amortization 
expense 
recognized 
in 
fiscal 
years 
2010 
and 
2009 
totaled 
$432 
million 
and 
$400 
million, 
respectively. 
Other 
nonoperating 
expenses 
were 
$356 
million 
and 
$985 
million 
for 
the 
years 
ended 
June 
30, 
2010 
and 
2009, 
respectively. 
The 
significant 
increase 
in 
nonoperating 
expenses 
during 
fiscal 
year 
2009 
was 
due 
to 
market 
conditions 
resulting 
in 
larger 
investment 
losses 
of 
$389 
million 
and 
the 
transfer 
of 
assets 
to 
the 
State 
University 
campus 
foundations 
of 
$288 
million. 


Economic 
Factors 
That 
Will 
Affect 
the 
Future 


The 
State 
University 
is 
one 
of 
the 
largest 
public 
universities 
in 
the 
nation, 
with 
headcount 
enrollment 
of 
nearly 
222,000 
in 
the 
fall 
2010, 
on 
twenty-nine 
State-operated 
campuses 
and 
five 
contract/statutory 
colleges. 
The 
State 
University�s 
student 
population 
is 
directly 
influenced 
by 
State 
demographics 
as 
the 
majority 
of 
students 
attending 
the 
State 
University 
are 
New 
York 
residents. 
The 
enrollment 
outlook 
remains 
strong 
for 
the 
State 
University 
based 
on 
its 
continued 
ability 
to 
attract 
quality 
students 
for 
its 
academic 
programs. 
Full-
time 
equivalent 
(FTE) 
enrollment, 
excluding 
community 
colleges, 
for 
the 
fiscal 
year 
ended 
June 
30, 
2010, 
is 
approximately 
192,100, 
an 
increase 


10

2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Management�s 
Discussion 
and 
Analysis 


of 
2,500 
FTE 
compared 
to 
June 
30, 
2009. 


New 
York 
State 
appropriations 
remain 
the 
largest 
single 
source 
of 
revenues. 
The 
State 
University�s 
continued 
operational 
viability 
is 
substantially 
dependent 
upon 
a 
consistent 
and 
proportionate 
level 
of 
ongoing 
State 
support. 
For 
the 
most 
recent 
fiscal 
year, 
State 
appropriations 
totaled 
$2.97 
billion 
which 
represented 
33 
percent 
of 
the 
total 
revenues 
of 
the 
State 
University. 
State 
appropriations 
consisted 
of 
direct 
support 
($1.27 
billion), 
debt 
service 
on 
educational 
facility 
and 
PIT 
bonds 
($462 
million), 
fringe 
benefits 
for 
State 
employees 
($1.02 
billion), 
and 
litigation 
($215 
million). 
Debt 
service 
on 
edu-
cational 
facilities 
is 
paid 
by 
the 
State 
in 
an 
amount 
sufficient 
to 
cover 
annual 
debt 
service 
requirements; 
pursuant 
to 
annual 
statutory 
provisions, 
each 
of 
the 
University�s 
three 
teaching 
hospitals 
must 
reimburse 
the 
State 
for 
their 
share 
of 
debt 
service 
costs 
to 
finance 
their 
capital 
projects. 
To 
maintain 
budgetary 
equilibrium 
in 
an 
era 
of 
fiscal 
uncertainty, 
in 
anticipation 
of 
declining 
State 
revenue 
streams, 
the 
State 
University 
is 
taking 
appropriate 
measures, 
such 
as 
early 
retirement 
incentive 
programs, 
implementing 
cost 
containment 
measures 
on 
discretionary 
spending 
for 
non-personal 
service 
costs 
while 
seeking 
to 
enhance 
other 
revenue 
streams. 


The 
State 
University 
depends 
on 
the 
State 
to 
provide 
appropriations 
in 
support 
of 
its 
capital 
programs. 
Consistent 
with 
the 
Executive 
Budget�s 
request, 
in 
2008 
the 
State 
University 
submitted 
proposals 
for 
new 
five-year 
capital 
programs 
commencing 
in 
2008-09 
through 
2012-13. 
As 
a 


result, 
the 
final 
enacted 
2008-09 
State 
Budget 
provided 
a 
$1.7 
billion 
multi-year 
appropriation 
for 
strategic 
initiatives 
and 
$550 
million 
for 
the 
first 
of 
five 
anticipated 
annual 
appropriations 
dedicated 
to 
critical 
maintenance 
efforts 
targeted 
for 
preservation 
or 
rehabilitation 
of 
existing 
facilities. 
The 
second 
of 
five 
$550 
million 
annual 
critical 
maintenance 
appropriations 
was 
included 
in 
the 
enacted 
2009-10 
State 
Budget, 
and 
the 
third 
appropriation 
is 
included 
in 
the 
2010-11 
State 
Budget. 
In 
total, 
the 
State 
University 
anticipates 
$2.75 
billion 
in 
multi-year 
critical 
maintenance 


appropriations 
over 
the 
five 
year 
period 
ending 
in 
2012-13. 
Taken 
together, 
the 
cumulative 
multi-year 


funding 
authorizations 
appropriated 
since 
2003 
provide 
the 
State 
University 
with 
the 
basic 
resources 
needed 
to 
address 
core 
critical 
maintenance 
needs 
of 
its 
existing 
buildings 
and 
infrastructure, 
and 
the 
means 
to 
make 
additional 
capital 
investments 
in 
a 
range 
of 
programmatic 
initiatives, 
including 
research 
and 
technology 
development. 


The 
State 
University 
hospitals, 
which 
are 
all 
part 
of 
larger 
State 
University 
Academic 
Health 
Centers 
at 
Brooklyn, 
Stony 
Brook 
and 
Syracuse, 
serve 
large 
numbers 
of 
Medicaid 
and 
uninsured 
patients 
and, 
as 
a 
result, 
their 
dependency 
on 
the 
Medicaid 
DSH 
Program 
revenue 
stream 
and 
Medicaid 
reimbursement 
is 
critical 
to 
their 
continued 
viability. 
Their 
financial 
and 
operational 
capabilities 
will 
also 
continue 
to 
be 
challenged 
by 
unsupported 
inflationary 
and 
contractual 
cost 
increases. 


11

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
12
Balance 
Sheets 


June 
30, 
2010 
and 
2009 
In 
thousands 


Assets 


Current 
Assets: 
Cash 
and 
cash 
equivalents 
Short-term 
investments 
Accounts, 
notes, 
and 
loans 
receivable, 
net 
Interest 
receivable 
Appropriations 
receivable 
Grants 
receivable 
Inventories 
Other 
assets 


Total 
current 
assets 


Noncurrent 
Assets: 
Restricted 
cash 
and 
cash 
equivalents 
Deposits 
with 
trustees 
Accounts, 
notes, 
and 
loans 
receivable, 
net 
Contributions 
receivable 
Appropriations 
receivable 
Deferred 
financing 
costs 
Long-term 
investments 
Capital 
assets, 
net 


Total 
noncurrent 
assets 


Total 
assets 


Liabilities 
and 
Net 
Assets 


Current 
Liabilities: 
Accounts 
payable 
and 
accrued 
liabilities 
Interest 
payable 
Student 
deposits 
Deposits 
held 
in 
custody 
for 
others 
Deferred 
revenue 
Long-term 
liabilities 
-current 
portion 
Other 
liabilities 


Total 
current 
liabilities 


Noncurrent 
Liabilities: 
Long-term 
liabilities 
Refundable 
government 
loan 
funds 
Other 
noncurrent 
liabilities 


Total 
noncurrent 
liabilities 


Total 
liabilities 


Net 
Assets: 
Invested 
in 
capital 
assets, 
net 
of 
related 
debt 
Restricted 
-nonexpendable: 


Instruction 
and 
departmental 
research 
Scholarships 
and 
fellowships 
General 
operations 
and 
other 


Restricted 
-expendable: 
Instruction 
and 
departmental 
research 
Scholarships 
and 
fellowships 
Capital 
projects 
Loans 
General 
operations 
and 
other 


Unrestricted 


Total 
net 
assets 


Total 
liabilities 
and 
net 
assets 


See 
accompanying 
notes 
to 
financial 
statements. 


2010 


$ 
1,385,912 
296,293 
621,064 
492 
407,101 
234,032 
48,841 
23,584 
3,017,319 


83,196 
583,702 
112,320 
13,752 
315,918 
88,784 
575,467 
7,076,233 
8,849,372 


$ 
11,866,691 


771,640 
127,859 
12,042 
79,287 
190,409 
560,516 
62,286 
1,804,039 


9,145,060 
141,361 
57,986 
9,344,407 


11,148,446 


791,413 


93,330 
83,130 
90,924 


121,191 
46,598 
398 
16,520 
178,479 
(703,738) 


718,245 


$ 
11,866,691 


2009 


1,227,501 
295,947 
668,571 
1,407 
388,107 
179,800 
48,827 
18,836 
2,828,996 


98,254 
803,298 
114,686 
21,887 
165,484 
72,082 
583,913 
6,235,899 


8,095,503 


10,924,499 


602,076 
162,006 
11,345 
88,537 
254,479 
504,319 
51,500 
1,674,262 


8,153,197 
146,301 
53,536 
8,353,034 


10,027,296 


606,165 


94,101 
75,139 
80,081 


117,710 
37,567 
939 
17,674 
154,973 


(287,146) 


897,203 


10,924,499 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Statements 
of 
Revenues, 
Expenses, 
and 
Changes 
in 
Net 
Assets 


For 
the 
Years 
Ended 
June 
30, 
2010 
and 
2009 


In 
thousands 


Operating 
revenues: 


Tuition 
and 
fees 
Less 
scholarship 
allowances 


Net 
tuition 
and 
fees 
Federal 
grants 
and 
contracts 
State 
and 
local 
grants 
and 
contracts 
Private 
grants 
and 
contracts 
Hospitals 
and 
clinics 
Sales 
and 
services 
of 
auxiliary 
enterprises: 


Residence 
halls, 
net 
Food 
service, 
net 
Other, 
net 


Other 
sources 


Total 
operating 
revenues 


Operating 
expenses: 


Instruction 
Research 
Public 
service 
Academic 
support 
Student 
services 
Institutional 
support 
Operation 
and 
maintenance 
of 
plant 
Scholarships 
and 
fellowships 
Hospitals 
and 
clinics 
Auxiliary 
enterprises: 


Residence 
halls 
Food 
service 
Other 


Depreciation 
and 
amortization 
expense 
Other 
operating 
expenses 


Total 
operating 
expenses 


Operating 
loss 


Nonoperating 
revenues 
(expenses): 


State 
appropriations 
Federal 
and 
state 
nonoperating 
grants 
Investment 
income, 
net 
Net 
realized 
and 
unrealized 
gains 
(losses) 
Gifts 
Interest 
expense 
on 
capital 
related 
debt 
Loss 
on 
disposal 
of 
plant 
assets 
Transfer 
to 
state 
university 
campus 
foundations 
Other 
nonoperating 
expenses, 
net 


Net 
nonoperating 
revenues 


Loss 
before 
other 
revenues 
and 
gains 


Capital 
appropriations 
Capital 
gifts 
and 
grants 
Additions 
to 
permanent 
endowments 


Decrease 
in 
net 
assets 


Net 
assets 
at 
the 
beginning 
of 
year 
Net 
assets 
at 
the 
end 
of 
year 


See 
accompanying 
notes 
to 
financial 
statements. 


2010 


$ 
1,563,051 
(455,738) 


1,107,313 
710,642 
225,919 
328,484 


1,876,918 


369,854 
227,666 
221,025 
95,369 


5,163,190 


2,041,660 
663,353 
294,999 
440,222 
258,394 
809,068 
586,812 
172,150 


2,227,162 


313,026 
225,713 
252,994 
432,043 
5,000 


8,722,596 


(3,559,406) 


2,965,719 


485,083 
31,185 
63,623 
97,795 


(299,808) 
(8,630) 
-
(47,400) 


3,287,567 


(271,839) 


1,022 
76,364 
15,495 


(178,958) 


897,203 
$ 
718,245 


2009 


1,407,900 
(377,702) 


1,030,198 
637,222 
218,850 
312,078 


1,723,164 


353,890 
216,874 
209,536 
103,572 


4,805,384 


2,044,597 
687,724 
298,122 
433,336 
263,481 
808,493 
578,467 
125,965 


2,082,902 


308,703 
215,741 
250,718 
400,494 
6,358 


8,505,101 


(3,699,717) 


3,062,915 
386,176 
61,227 


(389,287) 
70,529 
(293,196) 


(4,481) 
(287,563) 
(10,229) 


2,596,091 


(1,103,626) 


4,679 
48,096 
16,510 


(1,034,341) 


1,931,544 
897,203 


13

In 
thousands 
2010 
Cash 
flows 
from 
operating 
activities: 
Tuition 
and 
fees 
$ 
1,106,067 
Grants 
and 
contracts: 
Federal 
712,980 
State 
and 
local 
149,675 
Private 
330,208 
Hospital 
and 
clinics 
1,878,314 
Personal 
service 
payments 
(3,700,589) 
Other 
than 
personal 
service 
payments 
(2,233,384) 
Payments 
for 
fringe 
benefits 
(441,334) 
Payments 
for 
scholarships 
and 
fellowships 
(92,714) 
Loans 
issued 
to 
students 
(16,417) 
Collection 
of 
loans 
to 
students 
18,602 
Auxiliary 
enterprise 
charges: 
Residence 
halls 
369,603 
Food 
service 
226,489 
Other 
(intercollegiate 
athletics, 
bookstore, 
fees, 
and 
vending) 
208,798 
Other 
receipts 
(payments) 
6,670 
Net 
cash 
used 
by 
operating 
activities 
DRAFT(1,477,032) 
Cash 
flows 
from 
noncapital 
financing 
activities: 
State 
appropriations: 
Operations 
1,242,519 
Debt 
service 
500,502 
Federal 
and 
State 
nonoperating 
grants 
482,672 
Private 
gifts 
and 
grants 
105,402 
Proceeds 
from 
short-term 
loans 
23,657 
Repayment 
of 
short-term 
loans 
(37,778) 
Direct 
loan 
receipts 
532,592 
Direct 
loan 
disbursements 
(532,592) 
Transfers 
to 
state 
university 
campus 
foundations 
(12,396) 
Other 
receipts 
(payments) 
(13,606) 
Net 
cash 
provided 
by 
noncapital 
financing 
activities 
2,290,972 
Cash 
flows 
from 
capital 
and 
related 
financing 
activities: 
Proceeds 
from 
capital 
debt 
943,477 
Capital 
appropriations 
1,022 
Capital 
grants 
and 
gifts 
received 
38,086 
Proceeds 
from 
sale 
of 
capital 
assets 
538 
Purchases 
of 
capital 
assets 
(304,748) 
Payments 
to 
contractors 
(798,806) 
Principal 
paid 
on 
capital 
debt 
and 
leases 
(295,182) 
Interest 
paid 
on 
capital 
debt 
and 
leases 
(368,102) 
Deposits 
with 
trustees 
12,502 


THESTATEUNIVERSITYOFNEWYORK
14
Statements 
of 
Cash 
Flows 


For 
the 
Years 
Ended 
June 
30, 
2010 
and 
2009 


Net 
cash 
used 
by 
capital 
and 
related 
financing 
activities 
(771,213) 


Cash 
flows 
from 
investing 
activities: 


Proceeds 
from 
sales 
and 
maturities 
of 
investments 
3,293,014 
Interest, 
dividends, 
and 
realized 
gains 
(losses) 
on 
investments 
50,580 
Purchases 
of 
investments 
(3,242,968) 


Net 
cash 
provided 
by 
investing 
activities 
100,626 


Net 
change 
in 
cash 
143,353 
Cash 
-beginning 
of 
year 
1,325,755 
Cash 
-end 
of 
year 
$ 
1,469,108 


End 
of 
year 
cash 
comprised 
of: 


Cash 
and 
cash 
equivalents 
$ 
1,385,912 


Restricted 
cash 
and 
cash 
equivalents 
$ 
83,196 


2009 


1,034,114 


664,867 
206,467 
288,848 


1,644,447 
(3,674,846) 
(2,187,141) 


(413,545) 
(62,236) 
(16,701) 
16,699 


349,519 
210,798 
197,971 
(16,204) 


(1,756,943) 


1,464,331 
463,856 
386,095 


77,480 
34,502 
(86,450) 
324,126 
(324,126) 
(204,089) 
66,821 


2,202,546 


777,854 
4,679 
47,783 


164 
(309,477) 
(550,767) 
(343,392) 
(348,885) 


21,211 


(700,830) 


3,826,542 
(95,488) 
(3,437,157) 


293,897 


38,670 
1,287,085 
1,325,755 


1,227,501 


98,254 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Statements 
of 
Cash 
Flows 
(continued) 


For 
the 
Years 
Ended 
June 
30, 
2010 
and 
2009 


In 
thousands 


Reconciliation 
of 
net 
operating 
loss 
to 
net 
cash 
used 
by 
operating 
activities: 


Operating 
loss 


Adjustments 
to 
reconcile 
operating 
loss 
to 
net 
cash 


used 
by 
operating 
activities: 


Depreciation 
and 
amortization 
expense 


Fringe 
benefits, 
litigation, 
and 
other 
noncash 
expenses 


Change 
in 
assets 
and 
liabilities: 


Receivables, 
net 


Inventories 


Other 
assets 


Accounts 
payable, 
accrued 
expenses, 
and 
other 
liabilities 


Deferred 
revenue 


Student 
deposits 


Deposits 
held 
for 
others 


Net 
cash 
used 
by 
operating 
activities 


Supplemental 
disclosures 
for 
noncash 
transactions: 


New 
capital 
leases 
/ 
debt 
agreements 


Fringe 
benefits 
provided 
by 
the 
State 


Litigation 
costs 
provided 
by 
the 
State 


Noncash 
gifts 


2010 


$ 
(3,559,406) 


432,043 
1,053,602 


(26,259) 


(14) 
(4,721) 
649,566 
(25,353) 
696 
2,814 


$ 
(1,477,032) 


$ 
409,839 


$ 
1,020,748 


$ 
35,359 


$ 
35,436 


2009 


(3,699,717) 


400,494 
1,149,419 


(61,139) 
(8,179) 


(129) 
462,793 
(5,600) 


(446) 
5,561 
(1,756,943) 


157,064 


1,047,148 


38,351 


2,941 


15
See 
accompanying 
notes 
to 
financial 
statements. 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
State 
University 
of 
New 
York 
Foundations 


Balance 
Sheet 


June 
30, 
2010 
(with 
comparative 
totals 
for 
June 
30, 
2009) 


16
In 
thousands 


Assets 


Cash 
and 
cash 
equivalents 
Accounts 
and 
notes 
receivable, 
net 
Pledges 
receivable, 
net 
Investments 
Other 
assets 
Capital 
assets, 
net 


Total 
assets 


Liabilities 
and 
Net 
Assets 


Liabilities: 
Accounts 
payable 
and 
accrued 
liabilities 
Current 
portion 
of 
long-term 
debt 
Deferred 
revenue 
Deposits 
held 
in 
custody 
for 
others 
Other 
liabilities 
Long-term 
debt 


Total 
liabilities 


Net 
Assets: 
Unrestricted: 


Board 
designated 
for: 
Fixed 
assets 
Campus 
programs 
Investments 
Other 


Undesignated 


Temporarily 
restricted: 
Scholarships 
and 
fellowships 
Campus 
programs 
Research 
General 
operations 
and 
other 


Permanently 
restricted: 
Scholarships 
and 
fellowships 
Campus 
programs 
Research 
General 
operations 
and 
other 


Total 
net 
assets 


Total 
liabilities 
and 
net 
assets 


2010 


$ 
99,622 
13,219 
101,012 
1,239,106 
42,628 
386,052 


$ 
1,881,639 


41,257 
24,761 
1,572 
53,531 
45,292 


353,027 


519,440 


109,948 
87,005 
119,056 


4,018 
18,837 


97,500 
198,139 
116,217 
100,683 


236,034 
189,833 
20,471 
64,458 


1,362,199 


$ 
1,881,639 


2009 


71,788 
24,117 
139,337 
982,833 
37,451 
361,168 


1,616,694 


22,902 
8,248 
1,469 


51,814 
42,644 
267,644 


394,721 


112,323 
73,445 
62,957 
7,970 
4,639 


72,840 
206,807 
93,893 
105,491 


222,347 
165,396 
14,350 
79,515 


1,221,973 


1,616,694 


See 
accompanying 
notes 
to 
financial 
statements. 



Temporarily 
Permanently 
2010 
2009 
Unrestricted 
Restricted 
Restricted 
Total 
Total 
Revenues: 
Contributions, 
gifts, 
and 
grants 
$ 
30,410 
65,896 
26,535 
122,841 
180,578 
Investment 
income, 
net 
9,111 
15,230 
193 
24,534 
12,229 
Net 
realized 
and 
unrealized 
gains 
(losses) 
35,721 
45,946 
2,257 
83,924 
(164,001) 
Rental 
income 
51,291 
404 
-51,695 
50,389 
Sales 
and 
services 
16,978 
-2 
16,980 
17,289 
Program 
income 
and 
special 
events 
35,771 
5,857 
114 
41,742 
41,022 
Change 
in 
value 
of 
split 
interest 
agreements 
(1,558) 
1,031 
(1,672) 
(2,199) 
(4,528) 
Other 
sources 
2,970 
933 
13 
3,916 
3,601 
Transfers 
from 
state 
university 
endowment 
33,712 
14,263 
2,205 
50,180 
234,873 
Endowment 
earnings 
transferred 
-459 
(459) 
--
Net 
assets 
released 
from 
restrictions 
116,511 
(116,511) 
---
Total 
revenues 
330,917 
33,508 
29,188 
393,613 
371,452 
Expenses: 
DRAFT 
Program 
expenses 
122,861 
--122,861 
94,873 
Payments 
to 
the 
State 
University: 
Scholarships 
and 
fellowships 
25,131 
--25,131 
23,233 
Other 
17,837 
--17,837 
19,822 
Real 
estate 
expenses 
19,502 
--19,502 
19,653 
Depreciation 
and 
amortization 
expense 
13,845 
--13,845 
13,355 
Interest 
expense 
on 
capital-related 
debt 
12,742 
--12,742 
12,991 
Management 
and 
general 
20,215 
--20,215 
18,651 
Fundraising 
16,379 
--16,379 
15,354 
Other 
expenses 
4,875 
--4,875 
6,244 
Total 
expenses 
253,387 
--253,387 
224,176 
Change 
in 
net 
assets 
77,530 
33,508 
29,188 
140,226 
147,276 
Net 
assets, 
beginning 
of 
year 
261,334 
479,031 
481,608 
1,221,973 
1,074,697 
Net 
assets, 
end 
of 
year 
$ 
338,864 
512,539 
510,796 
1,362,199 
1,221,973 


2010ANNUALFINANCIALREPORT
State 
University 
of 
New 
York 
Foundations 
Statement 
of 
Activities 


For 
the 
Year 
Ended 
June 
30, 
2010 
(with 
comparative 
totals 
for 
June 
30, 
2009) 
In 
thousands 


17
See 
accompanying 
notes 
to 
financial 
statements. 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


18
1. 
Summary 
of 
Significant 
Accounting 
Policies 
and 
Basis 
of 
Presentation 
Reporting 
Entity 


For 
financial 
reporting 
purposes, 
the 
State 
University 
of 
New 
York 
(State 
University) 
consists 
of 
all 
sectors 
of 
the 
State 
University 
including 
the 
university 
centers, 
health 
science 
centers 
(including 
hospitals), 
colleges 
of 
arts 
and 
sciences, 
colleges 
of 
technology 
and 
agriculture, 
specialized 
colleges, 
and 
statutory 
colleges 
(located 
at 
the 
campuses 
of 
Cornell 
and 
Alfred 
Universities), 
central 
services 
and 
other 
affiliated 
entities 
determined 
to 
be 
includable 
in 
the 
State 
University�s 
financial 
reporting 
entity. 


Inclusion 
in 
the 
reporting 
entity 
is 
based 
primarily 
on 
the 
notion 
of 
financial 
accountability, 
defined 
in 
terms 
of 
a 
primary 
government 
(State 
University) 
that 
is 
financially 
accountable 
for 
the 
organizations 
that 
make 
up 
its 
legal 
entity. 
The 
reporting 
entity 
includes 
legally-separate 
organizations 
meeting 
certain 
financial 
accountability 
and 
fiscal 
dependency 
criteria 
of 
the 
State 
University. 
Separate 
legal 
entities 
meeting 
the 
criteria 
for 
inclusion 
in 
the 
blended 
totals 
of 
the 
State 
University 
reporting 
entity 
are 
described 
below. 
The 
State 
University 
is 
included 
in 
the 
financial 
statements 
of 
the 
State 
of 
New 
York 
(State) 
as 
an 
enterprise 
fund, 
as 
the 
State 
is 
the 
primary 
government 
of 
the 
State 
University. 


Legally-separate, 
tax-exempt, 
affiliated 
organiza-
tions 
that 
receive 
or 
hold 
economic 
resources 
that 
are 
significant 
to, 
that 
are 
entirely 
or 
almost 
entirely 
for 
the 
direct 
benefit 
of, 
and 
that 
can 
be 
accessed 
by 
the 
primary 
government, 
its 
component 
units, 
or 
its 
constituents 
are 
required 
to 
be 
included 
in 
the 
reporting 
entity 
using 
discrete 
presentation 
requirements. 
As 
a 
result, 
the 
combined 
totals 
of 
the 
campus-related 
foundations 
and 
student 
housing 
corporations 
(all 
referred 
to 
as 
foundations) 
are 
separately 
presented 
as 
an 
aggregate 
component 
unit 
on 
financial 
statement 
pages 
16 
and 
17 
in 
the 
State 
University�s 
financial 
statements 
in 
accordance 
with 
display 
requirements 
prescribed 
by 
the 
Financial 
Accounting 
Standards 
Board 
(FASB). 


The 
Research 
Foundation 
of 
State 
University 
of 
New 
York 
(Research 
Foundation) 
is 
a 
separate, 
private, 
nonprofit 
educational 
corporation 
that 


administers 
the 
majority 
of 
the 
State 
University�s 
sponsored 
programs. 
The 
programs 
include 
research, 
training, 
and 
public 
service 
activities 
of 
the 
State-
operated 
campuses 
supported 
by 
sponsored 
funds 
other 
than 
State 
appropriations. 
The 
activity 
of 
the 
Research 
Foundation 
has 
been 
included 
in 
these 
financial 
statements 
using 
GASB 
measurements 
and 
recognition 
standards. 
The 
financial 
activity 
was 
derived 
from 
audited 
financial 
statements 
of 
the 
Research 
Foundation 
for 
the 
years 
ended 
June 
30, 
2010 
and 
2009. 


Almost 
all 
of 
the 
State 
University�s 
campuses 
maintain 
auxiliary 
services 
corporations. 
These 
corporations 
are 
campus-based, 
nonprofit 
organiza-
tions 
which, 
as 
independent 
contractors, 
operate, 
manage, 
and 
promote 
educationally 
related 
services 
for 
the 
benefit 
of 
the 
campus 
community. 
Although 
separate 
and 
independent 
legal 
entities, 
these 
corpo-
rations 
carry 
out 
operations 
which 
are 
integrally 
related 
to 
the 
State 
University 
and, 
therefore, 
are 
included 
in 
the 
financial 
statements 
of 
the 
State 
University. 
All 
of 
the 
financial 
data 
for 
these 
corporations 
was 
derived 
from 
each 
entity�s 
individual 
audited 
financial 
statements, 
the 
majority 
of 
which 
have 
a 
May 
31 
or 
June 
30 
fiscal 
year 
end. 


The 
State 
University 
Construction 
Fund 
(Construction 
Fund) 
is 
a 
public 
benefit 
corporation 
that 
designs, 
constructs, 
reconstructs 
and 
rehabilitates 
facilities 
of 
the 
State 
University 
pursuant 
to 
an 
approved 
master 
plan. 
Although 
the 
Construction 
Fund 
is 
a 
separate 
legal 
entity, 
it 
carries 
out 
operations 
which 
are 
integrally 
related 
to 
the 
State 
University 
and, 
therefore, 
the 
financial 
activity 
related 
to 
the 
Construction 
Fund 
is 
included 
in 
the 
State 
University�s 
financial 
statements 
as 
of 
the 
Construction 
Fund�s 
fiscal 
years 
end 
of 
March 
31, 
2010 
and 
2009. 


The 
State 
statutory 
colleges 
at 
Cornell 
University 
and 
Alfred 
University 
are 
an 
integral 
part 
of, 
and 
are 
administered 
by, 
those 
universities. 
The 
statutory 
colleges 
are 
fiscally 
dependent 
on 
State 
appropriations 
through 
the 
State 
University. 
The 
financial 
statement 
information 
of 
the 
statutory 
colleges 
of 
Cornell 
University 
and 
Alfred 
University 
have 
been 
included 
in 
the 
accompanying 
financial 
statements. 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


1. 
Summary 
of 
Significant 
Accounting 
Policies 
and 
Basis 
of 
Presentation 
(continued) 
The 
operations 
of 
certain 
related 
but 
independent 
organizations, 
i.e., 
clinical 
practice 
management 
plans, 
alumni 
associations 
and 
student 
associations, 
do 
not 
meet 
the 
criteria 
for 
inclusion, 
and 
are 
not 
included 
in 
the 
accompanying 
financial 
statements. 


The 
State 
University 
administers 
State 
financial 
assistance 
to 
the 
community 
colleges 
in 
connection 
with 
its 
general 
oversight 
responsibilities 
pursuant 
to 
State 
Education 
Law. 
However, 
since 
these 
community 
colleges 
are 
sponsored 
by 
local 
governmental 
entities 
and 
are 
included 
in 
their 
financial 
statements, 
the 
community 
colleges 
are 
not 
considered 
part 
of 
the 
State 
University�s 
financial 
reporting 
entity 
and, 
therefore, 
are 
not 
included 
in 
the 
accompanying 
financial 
statements. 


The 
accompanying 
financial 
statements 
of 
the 
State 
University 
have 
been 
prepared 
using 
the 
economic 
resources 
measurement 
focus 
and 
the 
accrual 
basis 
of 
accounting 
in 
accordance 
with 


U.S. 
generally 
accepted 
accounting 
principles 
as 
prescribed 
by 
the 
Governmental 
Accounting 
Standards 
Board 
(GASB). 
The 
State 
University 
applies 
all 
applicable 
pronouncements 
of 
the 
FASB 
issued 
on 
or 
before 
November 
30, 
1989 
that 
do 
not 
conflict 
with 
or 
contradict 
GASB 
pronouncements. 
The 
State 
University 
has 
elected 
not 
to 
apply 
FASB 
pronouncements 
issued 
after 
November 
30, 
1989. 


The 
State 
University 
reports 
its 
financial 
statements 
as 
a 
special 
purpose 
government 
engaged 
in 
business-type 
activities, 
as 
defined 
by 
GASB. 
Business-type 
activities 
are 
those 
that 
are 
financed 
in 
whole 
or 
in 
part 
by 
fees 
charged 
to 
external 
parties 
for 
goods 
or 
services. 
The 
financial 
statements 
of 
the 
State 
University 
consist 
of 
classified 
balance 
sheets; 
statements 
of 
revenues, 
expenses, 
and 
changes 
in 
net 
assets, 
that 
distinguish 
between 
operating 
and 
non-
operating 
revenues 
and 
expenses; 
and 
statements 
of 
cash 
flows, 
using 
the 
direct 
method 
of 
presenting 
cash 
flows 
from 
operations 
and 
other 
sources. 


The 
State 
University�s 
policy 
for 
defining 
operating 
activities 
in 
the 
statement 
of 
revenues, 
expenses, 
and 
changes 
in 
net 
assets 
are 
those 
that 
generally 
result 
from 
exchange 
transactions, 
i.e., 
the 
payments 
received 
for 
services 
and 
payments 
made 
for 
the 
purchase 
of 
goods 
and 
services. 
Certain 
other 
transactions 
are 
reported 
as 
nonoperating 
activities 
and 
include 
the 
State 
University�s 
operating 
and 
capital 
appropriations 
from 
the 
State, 
federal 


appropriations, 
nonexchange 
receipts, 
net 
investment 
income, 
gifts, 
and 
interest 
expense. 
Resources 
are 
classified 
for 
accounting 
and 


financial 
reporting 
purposes 
into 
the 
following 
four 
net 
asset 
categories: 


Invested 
in 
capital 
assets, 
net 
of 
related 
debt 


Capital 
assets, 
net 
of 
accumulated 
depreciation 
and 
amortization 
and 
outstanding 
principal 
balances 
of 
debt 
attributable 
to 
the 
acquisition, 
construction, 
repair 
or 
improvement 
of 
those 
assets. 


Restricted 
� 
nonexpendable 


Net 
assets 
subject 
to 
externally 
imposed 
conditions 
that 
the 
State 
University 
is 
required 
to 
retain 
in 
perpetuity. 


Restricted 
� 
expendable 


Net 
assets 
whose 
use 
is 
subject 
to 
externally 
imposed 
conditions 
that 
can 
be 
fulfilled 
by 
the 
actions 
of 
the 
State 
University 
or 
by 
the 
passage 
of 
time. 


Unrestricted, 
all 
other 
categories 
of 
net 
assets 


Included 
in 
unrestricted 
net 
assets 
are 
amounts 
provided 
for 
specific 
use 
by 
the 
State 
University�s 
colleges 
and 
universities, 
hospitals 
and 
clinics, 
and 
separate 
legal 
entities 
included 
in 
the 
State 
University�s 
reporting 
entity 
that 
are 
designated 
for 
those 
entities 
and, 
therefore, 
not 
available 
for 
other 
purposes. 


The 
State 
University 
has 
adopted 
a 
policy 
of 
generally 
utilizing 
restricted 
-expendable 
funds, 
when 
available, 
prior 
to 
unrestricted 
funds. 


19

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


1. 
Summary 
of 
Significant 
Accounting 
Policies 
Investments 
20
and 
Basis 
of 
Presentation 
(continued) 


Revenues 


Revenues 
are 
recognized 
in 
the 
accounting 
period 
when 
earned. 
State 
appropriations 
are 
recognized 
when 
they 
are 
made 
legally 
available 
for 
expend-
iture. 
Revenues 
and 
expenditures 
arising 
from 
nonexchange 
transactions 
are 
recognized 
when 
all 
eligibility 
requirements, 
including 
time 
require-
ments, 
are 
met. 
Promises 
of 
private 
donations 
are 
recognized 
at 
fair 
value. 
Net 
patient 
service 
revenue 
for 
the 
hospitals 
is 
reported 
at 
the 
estimated 
net 
realizable 
amounts 
from 
patients, 
third 
party 
payors 
and 
others 
for 
services 
rendered, 
including 
estimated 
retroactive 
adjustments 
under 
reimbursement 
agreements 
with 
third 
party 
payors. 


Tuition 
and 
fees 
and 
auxiliary 
sales 
and 
service 
revenues 
are 
reported 
net 
of 
scholarship 
discounts 
and 
allowances. 
Auxiliary 
sales 
and 
service 
revenue 
classifications 
for 
2010 
and 
2009 
were 
reported 
net 
of 
the 
following 
scholarship 
discount 
and 
allowance 
amounts 
(in 
thousands): 


2010 
Residence 
halls 
$ 
64,199 
Food 
service 
27,997 
Other 
auxiliary 
27,117 
2009 
60,839 
26,433 
26,006 
Cash 
and 
Cash 
Equivalents 


Cash 
and 
cash 
equivalents 
are 
defined 
as 
current 
operating 
assets 
that 
include 
investments 
with 
original 
maturities 
of 
less 
than 
90 
days, 
except 
for 
cash 
and 
cash 
equivalents 
held 
in 
investment 
pools 
which 
are 
included 
in 
short-term 
and 
long-term 
investments 
on 
the 
accompanying 
balance 
sheets. 


Investments 
in 
marketable 
securities 
are 
stated 
at 
fair 
value 
based 
upon 
quoted 
market 
prices. 
Investment 
income 
is 
recorded 
on 
the 
accrual 
basis, 
and 
purchases 
and 
sales 
of 
investment 
securities 
are 
reflected 
on 
a 
trade 
date 
basis. 
Any 
net 
earnings 
not 
expended 
are 
included 
as 
increases 
in 
restricted 
-
nonexpendable 
net 
assets 
if 
the 
terms 
of 
the 
gift 
require 
that 
such 
earnings 
be 
added 
to 
the 
principal 
of 
a 
permanent 
endowment 
fund, 
or 
as 
increases 
in 
restricted 
-expendable 
net 
assets 
as 
provided 
for 
under 
the 
terms 
of 
the 
gift, 
or 
as 
unrestricted. 
At 
June 
30, 
2010 
and 
2009, 
the 
State 
University 
had 
$138 
million 
and 
$111 
million 
available 
for 
authorization 
for 
expenditure, 
including 
$67 
million 
and 
$56 
million 
from 
restricted 
funds 
and 
$71 
million 
and 
$55 
million 
from 
unrestricted 
funds, 
respectively. 


The 
Investment 
Committee 
of 
the 
Cornell 
Board 
of 
Trustees 
establishes 
the 
investment 
policy 
of 
the 
Cornell 
statutory 
colleges. 
Distributions 
from 
the 
pool 
are 
approved 
by 
the 
Cornell 
Board 
of 
Trustees 
and 
are 
provided 
for 
program 
support 
independent 
of 
the 
cash 
yield 
and 
appreciation 
of 
investments 
in 
that 
year. 
Investments 
in 
the 
pool 
are 
stated 
at 
fair 
value 
and 
include 
limited 
use 
of 
derivative 
instruments, 
including 
leverage 
futures, 
options 
and 
other 
similar 
vehicles 
to 
manage 
market 
exposure 
and 
to 
enhance 
the 
total 
return. 


Alternative 
investments 
are 
valued 
using 
current 
estimates 
of 
fair 
value 
obtained 
from 
the 
investment 
manager 
in 
the 
absence 
of 
readily 
determinable 
public 
market 
values. 
The 
estimated 
fair 
value 
of 
these 
investments 
is 
based 
on 
the 
most 
recent 
valuations 
provided 
by 
the 
external 
investment 
managers. 
Because 
of 
the 
inherent 
uncertainty 
of 
valuation 
for 
these 
investments, 
the 
investment 
manager�s 
estimate 
may 
differ 
from 
the 
values 
that 
would 
have 
been 
used 
had 
a 
ready 
market 
existed. 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


1. 
Summary 
of 
Significant 
Accounting 
Policies 
and 
Basis 
of 
Presentation 
(continued) 
Capital 
Assets 


Capital 
assets 
are 
stated 
at 
cost, 
or 
in 
the 
case 
of 
gifts, 
fair 
value 
at 
the 
date 
of 
receipt. 
Building 
renovations 
and 
additions 
costing 
over 
$100,000 
and 
equipment 
items 
with 
a 
unit 
cost 
of 
$5,000 
or 
more 
are 
capitalized. 
Equipment 
under 
capital 
leases 
are 
stated 
at 
the 
present 
value 
of 
minimum 
lease 
payments 
at 
the 
inception 
of 
the 
lease. 
Generally, 
the 
net 
interest 
cost 
on 
debt 
during 
the 
construction 
period 
related 
to 
capital 
projects 
is 
capitalized 
and 
totaled 
$27.1 
million 
and 
$12.4 
million 
in 
the 
2010 
and 
2009 
fiscal 
years, 
respectively. 
Intangible 
assets 
for 
internally 
generated 
computer 
software 
of 
$1,000,000 
or 
more 
and 
$100,000 
for 
all 
other 
intangible 
assets 
are 
capitalized. 
Library 
materials 
are 
capitalized 
and 
amortized 
over 
a 
ten-year 
period. 
Works 
of 
art 
or 
historical 
treasures 
that 
are 
held 
for 
public 
exhibition, 
education, 
or 
research 
in 
furtherance 
of 
public 
service 
are 
capitalized. 
Capital 
assets, 
with 
the 
exception 
of 
land, 
construction 
in 
progress, 
and 
inexhaustible 
works 
of 
art 
or 
intangible 
assets, 
are 
depreciated 
on 
a 
straight-line 
basis 
over 
their 
estimated 
useful 
lives, 
using 
historical 
and 
industry 
experience, 
ranging 
from 
3 
to 
50 
years. 


Deferred 
Financing 
Costs 


Deferred 
financing 
costs 
represent 
costs 
incurred 
for 
the 
issuance 
of 
bonds 
that 
are 
capitalized 
and 
amortized 
over 
the 
life 
of 
the 
related 
debt. 


Inventories 


Inventories 
held 
by 
the 
State 
University 
are 
primarily 
stated 
at 
the 
lower 
of 
cost 
or 
market 
value 
on 
a 
first-in, 
first-out 
basis. 


Compensated 
Absences 


Employees 
accrue 
annual 
leave 
based 
primarily 
on 
the 
number 
of 
years 
employed 
up 
to 
a 
maximum 
rate 
of 
21 
days 
per 
year 
up 
to 
a 
maximum 
of 
40 
days. 


Fringe 
Benefits 


Employee 
fringe 
benefit 
costs 
(e.g., 
health 
insurance, 
workers� 
compensation, 
and 
pension 
and 


post-retirement 
benefits) 
are 
paid 
by 
the 
State 
on 
behalf 
of 
the 
State 
University 
(except 
for 
the 
State 
University 
hospitals, 
which 
pay 
their 
own 
fringe 
benefit 
costs) 
at 
a 
fringe 
benefit 
rate 
determined 
by 
the 
State. 
The 
State 
University 
records 
an 
expense 
and 
corresponding 
State 
appropriation 
revenue 
for 
fringe 
benefit 
costs 
based 
on 
the 
fringe 
benefit 
rate 
applied 
to 
total 
eligible 
personal 
service 
costs 
incurred. 


Postemployment 
Benefits 


Postemployment 
benefits 
other 
than 
pensions 
are 
recognized 
on 
an 
actuarially 
determined 
basis 
as 
employees 
earn 
benefits 
that 
are 
expected 
to 
be 
used 
in 
the 
future. 
The 
amounts 
earned 
include 
employee 
sick 
leave 
credits 
expected 
to 
be 
used 
to 
pay 
for 
a 
share 
of 
post-retirement 
health 
insurance. 


Tax 
Status 


The 
State 
University 
and 
the 
Construction 
Fund 
are 
political 
subdivisions 
of 
the 
State 
and 
are, 
therefore, 
generally 
exempt 
from 
federal 
and 
state 
income 
taxes 
under 
applicable 
federal 
and 
state 
statutes 
and 
regulations. 


The 
Research 
Foundation 
and 
campus 
auxiliary 
services 
corporations 
are 
nonprofit 
organizations 
as 
described 
in 
Section 
501(c)(3) 
of 
the 
Internal 
Revenue 
Code 
and 
are 
tax-exempt 
on 
related 
income, 
pursuant 
to 
Section 
501(a) 
of 
the 
Code. 


Use 
of 
Estimates 


The 
preparation 
of 
financial 
statements 
in 
conformity 
with 
U.S. 
generally 
accepted 
accounting 
principles 
requires 
management 
to 
make 
estimates 
and 
assumptions 
that 
affect 
the 
reported 
amounts 
of 
assets 
and 
liabilities, 
the 
disclosure 
of 
contingent 
assets 
and 
liabilities 
at 
the 
date 
of 
the 
financial 
statements, 
and 
the 
reported 
amount 
of 
revenues 
and 
expenses 
during 
the 
reporting 
period. 
Actual 
results 
could 
differ 
from 
those 
estimates. 


Reclassifications 


Certain 
amounts 
displayed 
in 
the 
2009 
financial 
statements 
have 
been 
reclassified 
to 
conform 
to 
the 
2010 
presentation. 


21

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


22
2. 
Cash 
and 
Cash 
Equivalents 
Cash 
and 
cash 
equivalents 
represent 
State 
University 
funds 
held 
in 
the 
State 
treasury, 
in 
the 
short-term 
investment 
pool 
(STIP), 
or 
local 
deposi-
tories, 
and 
cash 
held 
by 
affiliated 
organizations. 
Cash 
held 
in 
the 
State 
treasury 
beyond 
immediate 
need 
is 
pooled 
with 
other 
State 
funds 
for 
short-term 
investment 
purposes. 
The 
pooled 
balances 
are 
limited 
to 
legally-stipulated 
investments 
which 
include 
obligations 
of, 
or 
are 
guaranteed 
by, 
the 
United 
States; 
obligations 
of 
the 
State 
and 
its 
political 
subdivisions; 
and 
repurchase 
agreements. 
These 
investments 
are 
reported 
at 
cost 
(which 
approximates 
fair 
value) 
and 
are 
held 
by 
the 
State�s 
agent 
in 
its 
name 
on 
behalf 
of 
the 
State 
University. 


The 
New 
York 
State 
Comprehensive 
Annual 
Financial 
Report 
contains 
the 
GASB 
No. 
40 
risk 
disclosures 
for 
deposits 
held 
in 
the 
State 
treasury. 
Deposits 
not 
held 
in 
the 
State 
treasury 
that 
are 
not 
covered 
by 
depository 
insurance 
and 
are 
(a) 
uncollateralized; 
(b) 
collateralized 
with 
securities 
held 
by 
a 
pledging 
financial 
institution; 
or 
(c) 
collateralized 
with 
securities 
held 
by 
a 
pledging 
financial 
institution�s 
trust 
department 
or 
agency, 
but 
not 
in 
the 
State 
University 
or 
affiliates� 
name 
at 
June 
30, 
2010 
and 
2009, 
are 
as 
follows 
(in 
thousands): 


Category 
a 
Category 
b 
Category 
c 
2010 
$ 
44,949 
20,900 
13,455 
2009 
69,489 
20,083 
8,724 


3. 
Deposits 
with 
Trustees 
Deposits 
with 
trustees 
primarily 
represent 
Dormitory 
Authority 
of 
the 
State 
of 
New 
York 
(DASNY) 
bond 
proceeds 
needed 
to 
finance 
capital 
projects 
and 
to 
establish 
required 
building 
and 
equipment 
replacement 
and 
debt 
service 
reserves. 
Pursuant 
to 
financing 
agreements 
with 
DASNY, 
bond 
proceeds, 
including 
interest 
income, 
are 
restricted 
for 
capital 
projects 
or 
debt 
service. 
Also 
included 
are 
non-bond 
proceeds 
which 
have 
been 
designated 
for 
capital 
projects 
and 
equipment. 


The 
State 
University�s 
cash 
and 
investments 
which 
comprise 
deposits 
with 
trustees 
are 
registered 
in 
the 
State 
University�s 
name 
and 
held 
by 
an 
agent 
or 
in 
trust 
accounts 
in 
the 
State 
University�s 
name. 
Cash 
and 
short-term 
investments 
held 
in 
the 
State 
treasury 
and 
money 
market 
accounts 
were 
approximately 
$175 
million 
and 
$258 
million 
at 
June 
30, 
2010 
and 
2009, 
respectively. 
The 
market 
value 
of 
investments 
held 
and 
maturity 
period 
are 
displayed 
in 
the 
table 
below 
(in 
thousands): 


Fiscal 
Year 
2010 


Less 
than 
Type 
of 
Investments 
Fair 
Value 
1 
year 
US 
Treasury 
notes/bonds 
$ 
32,030 
26,314 
US 
Treasury 
bills 
117,976 
117,976 
US 
Treasury 
strips 
202,748 
202,748 
FNMA* 
42,218 
42,218 
Federal 
Home 
Loan 
Bank 
13,825 
13,825 
Total 
$ 
408,797 
403,081 


*Federal 
National 
Mortgage 
Association 


Fiscal 
Year 
2009 


1-5 
years 


5,716 


-

-

-

-

5,716 


Rating 


-
-

-
AAA 
AAA 


Less 
than 
1-5 
Type 
of 
Investments 
Fair 
Value 
1 
year 
years 
Rating 
US 
Treasury 
notes/bonds 
$ 
75,404 
68,989 
6,415 
-
US 
Treasury 
bills 
233,330 
233,330 
--
US 
Treasury 
strips 
4,060 
4,060 
--
FNMA* 
86,631 
86,631 
-AAA 
Federal 
Home 
Loan 
Bank 
145,897 
145,897 
-AAA 
Total 
$ 
545,322 
538,907 
6,415 
*Federal 
National 
Mortgage 
Association 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


4. 
Investments 
Investments 
of 
the 
State 
University 
are 
recorded 
at 
fair 
value. 
Investment 
income 
is 
reported 
net 
of 
investment 
fees 
of 
$1 
million 
and 
$3 
million 
for 
2010 
and 
2009, 
respectively. 
Investments 
are 
comprised 
of 
the 
statutory 
colleges 
at 
Cornell 
University 
and 
Alfred 
University 
(Alfred 
Ceramics), 
the 
Research 
Foundation, 
the 
Construction 
Fund, 
the 
auxiliary 
services 
corporations, 
and 
certain 
State 
University 
campuses. 


Investments 
of 
the 
endowment 
and 
similar 
funds 
of 
the 
Cornell 
statutory 
colleges, 
except 
for 
separately 
invested 
funds 
with 
a 
fair 
value 
of 
$24 
million 
and 
$23 
million 
at 
June 
30, 
2010 
and 
2009, 
respectively, 
are 
pooled 
on 
a 
fair 
value 
basis 
in 
Cornell�s 
long-term 
investment 
pool 
and 
living 
trust 
fund. 
Individual 
funds 
enter 
or 
withdraw 
from 
the 
pool 
based 
on 
each 
fund�s 
share 
of 
the 
fair 
value 
of 
the 
pool�s 
investments. 


The 
Research 
Foundation 
maintains 
a 
diverse 
investment 
portfolio 
and 
with 
respect 
to 
debt 


instruments, 
has 
a 
policy 
of 
investing 
in 
primarily 
high 
quality 
securities. 
Investments 
are 
held 
with 
the 
investment 
custodian 
in 
the 
Research 
Foundation�s 
name. 


Investments 
of 
the 
Construction 
Fund 
are 
made 
in 
accordance 
with 
the 
applicable 
provisions 
of 
the 
laws 
of 
the 
State 
and 
the 
Construction 
Fund�s 
investment 
policy 
and 
consist 
primarily 
of 
obligations 
of 
the 
United 
States 
government 
and 
its 
agencies. 
These 
investments 
are 
held 
by 
the 
State�s 
agent 
in 
the 
State 
University 
Construction 
Fund�s 
name. 


Investments 
of 
the 
auxiliary 
services 
corporations 
and 
Alfred 
Ceramics 
were 
derived 
from 
each 
entity�s 
individual 
financial 
statements. 


The 
State 
University�s 
financial 
position 
may 
be 
impacted 
through 
its 
market 
risk 
positions 
and 
by 
changes 
in 
economic 
conditions. 


The 
composition 
of 
investments 
at 
June 
30, 
2010 
and 
2009 
is 
as 
follows 
(in 
thousands): 


23
2010 
2009 


Cash 
and 
money 
market 
funds 
$ 
82,246 
153,695 


Non-equities 
267,700 
218,034 


Domestic 
and 
international 
equities 
113,651 
58,684 


Equity 
partnerships 
213,997 
294,906 
Hedge 
funds 
170,918 
125,616 
Other 
investments 
23,248 
28,925 
Total 
investments 
871,760 
879,860 
Short-term 
296,293 
295,947 


2010 
2009 


State 
University 
Campuses 
2,216 
1,960 
Cornell 
Statutory 
Colleges 
581,143 
542,076 
Alfred 
Ceramics 
17,046 
16,252 
Research 
Foundation 
194,930 
239,041 
Auxiliary 
Services 
Corporations 
45,810 
50,015 
State 
University 
Construction 
Fund 
30,615 
30,516 
Total 
investments 
$ 
871,760 
879,860 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


4. 
Investments 
(continued) 
Generally, 
individual 
investment 
securities 
must 
be 
of 
investment 
grade. 
Credit 
quality 
ratings 
of 
the 
At 
June 
30, 
2010 
and 
2009, 
the 
State 
University 


had 
the 
following 
non-equity 
investments 
maturities 
as 
summarized 
in 
Table 
A. 
and 
State 
University�s 
investments 
in 
debt 
securities, 
as 
described 
by 
Moody�s, 
S&P, 
and 
Fitch 
as 
of 
June 
30, 
2010 
and 
2009 
are 
summarized 
in 
Table 
B. 
Table 
A 
(in 
thousands) 
Fiscal 
Year 
2010 
Fiscal 
Year 
2009 


Investment 
Type 


US 
treasury 
bills 
$ 
US 
treasury 
notes/bonds 
US 
treasury 
strips 
Asset-backed 
securities 
Municipals 
Repurchase 
agreements 
Corporate 
bonds 
Mutual 
funds 
� 
non-equities 
International 
� 
non-equities 
US 
government 
TIPS 
US 
government 
agencies 


Total 
investments 
$ 


Market 
Value 


14,564 
28,564 
10,707 
8,788 
1,432 
6,530 
77,290 
70,619 
8,870 
2,637 
37,699 


267,700 


Less 
than 
1 
yr 
1-5 
yrs 


-
4,306 
21,645 
-10,707 
256 
2,281 
71 
243 
6,530 
-
14,287 
54,436 
-22,398 
701 
4,243 


14,564 


32,656 
4,010 
73,371 
119,963 


6-10 
yrs 


-
790 
-
1,991 
486 
-
7,491 
47,966 
2,196 
215 
129 


61,264 


More 
than 
10 
yrs 


-

1,823 
-
4,260 


632 
-

1,076 
255 
1,730 
2,422 
904 
13,102 


Market 
Value 


10,687 
49,816 
13,952 
6,484 
1,990 
2,276 
58,562 
27,055 
5,341 
3,494 
38,377 


218,034 


Less 
than 
1 
yr 


10,687 
15,250 
3,452 
39 
60 
2,276 
1,909 
16,983 
514 


-
3,293 
54,463 


1-5 
yrs 
-
31,899 
10,500 
33 
107 
-

40,605 
5,733 
1,550 
1,122 
5,387 


96,936 


6-10 
yrs 


-

2,631 
-
270 
870 


-

11,956 
4,236 
1,763 


303 
24,686 


46,715 


More 
than 
10 
yrs 
-
36 
-
6,142 
953 
-

4,092 


103 
1,514 
2,069 
5,011 


19,920 


24
Table 
B 
(in 
thousands) 


Other 
Credit 
Rating 
AAA 
AA 
A 
BBB 
BB 
B 
Rating 
Not 
Rated 


Investment 
Type 
-2010 
Asset-backed 
securities 
$ 
2,594 
100 
38 
545 
959 
1,111 
335 
3,106 
Municipal 
bonds 
238 
329 
501 
27 
---337 
Repurchase 
agreements 
6,530 
Corporate 
bonds 
15,011 
9,917 
33,273 
12,884 
2,081 
3,430 
198 
496 
Mutual 
funds 
-non-equities* 
50,720 
-6,169 
3,006 
-4,316 
-6,408 
International 
-non-equities 
4,003 
1,460 
887 
1,026 
385 
89 
1,020 


-
US 
government 
agencies 
37,699 
Total 
$ 
72,566 
11,806 
40,868 
17,488 
3,425 
8,946 
533 
55,596 


Investment 
Type 
-2009 
Asset-backed 
securities 
$ 
3,070 
583 
177 
426 
223 
755 
489 
761 
Municipal 
bonds 
653 
178 
636 
15 
---508 
Repurchase 
agreements 
2,276 
Corporate 
bonds 
7,141 
8,927 
29,939 
11,659 
163 
101 
252 
380 
Mutual 
funds 
-non-equities* 
14,702 
---4,881 
--7,472 
International 
-non-equities 
1,870 
562 
652 
995 
179 
75 
-1,008 
US 
government 
agencies 
25,877 
------12,500 


Total 
$ 
53,313 
10,250 
31,404 
13,095 
5,446 
931 
741 
24,905 


*based 
on 
average 
credit 
quality 
of 
holdings 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


4. 
Investments 
(continued) 
The 
State 
University�s 
exposure 
to 
foreign 
currency 
risk 
for 
investments 
held 
at 
June 
30, 
2010 
and 
2009 
was 
as 
follows 
(fair 
value 
in 
thousands): 


Currency 
Denomination 


Japanese 
yen 
Euro 
British 
pound 
Hong 
Kong 
dollar 
South 
Korean 
won 
Taiwan 
dollar 
Malaysian 
ringgit 
Brazil 
real 
cruzeiro 
Turkish 
lira 
Singapore 
dollar 
Swedish 
krona 
Thailand 
baht 
Swiss 
franc 
So. 
African 
rand 
Polish 
zloty 
Mexican 
Nuevo 
Peso 
Australian 
dollar 
Canadian 
dollar 
Norwegian 
krone 
Other 


Total 


25
Table 
C 
(in 
thousands) 


2010 
2009 


$ 
5,149 
4,377 
5,127 
4,154 
3,682 
2,306 
2,885 
1,924 
2,275 
795 
1,578 
826 
1,167 
522 
998 
538 
684 
353 
647 
513 
626 
224 
569 
291 
468 
191 
438 
344 
417 
185 
405 
191 
319 
276 
293 
307 
194 
257 
851 
655 
$ 
28,772 
19,229 


5. 
Accounts, 
Notes, 
and 
Loans 
Receivable 
At 
June 
30, 
accounts, 
notes, 
and 
loans 
receivable 
were 
summarized 
as 
follows 
(in 
thousands) 
for 
years 
2010 
and 
2009, 
respectively: 


Tuition 
and 
fees 
Allowance 
for 
uncollectible 


Net 
tuition 
and 
fees 
Room 
rent 
Allowance 
for 
uncollectible 


Net 
room 
rent 
Patient 
fees, 
net 
of 
contractual 
allowances 
Allowance 
for 
uncollectible 
Net 
patient 
fees 
Other, 
net 
Total 
accounts 
and 
notes 
receivable 


Student 
loans 
Allowance 
for 
uncollectible 


2010 
2009 


$ 
52,721 
31,864 
(8,365) 
(7,604) 
44,356 
24,260 
7,884 
7,780 
(2,001) 
(1,805) 
5,883 
5,975 


584,983 
631,746 
(190,804) 
(194,787) 
394,179 
436,959 
153,652 
176,233 


598,070 
643,427 


158,725 
162,257 
(23,411) 
(22,427) 


Total 
student 
loans 
receivable 
135,314 
139,830 
Total, 
net 
$ 
733,384 
783,257 
6. 
Capital 
Assets 


Capital 
assets, 
net 
of 
accumulated 
depreciation, 
totaled 
$7.08 
billion 
and 
$6.24 
billion 
at 
fiscal 
year 
end 
2010 
and 
2009, 
respectively. 
Capital 
asset 
activity 
for 
fiscal 
years 
2010 
and 
2009 
is 
reflected 
in 
Table 
C. 
In 
the 
table, 
closed 
projects 
and 
retirements 
represent 
capital 
assets 
retired 
and 
assets 
transferred 
from 
construction 
in 
progress 
for 
projects 
completed 
and 
the 
related 
capital 
assets 
placed 
in 
service. 


June 
30, 
Closed 
Projects 
June 
30, 
Closed 
Projects 
June 
30, 
2008 
Additions 
& 
Retirements 
2009 
Additions 
& 
Retirements 
2010 


Land 
$ 
301,862 
11,313 
-313,175 
47,644 
50 
360,769 
Infrastructure 
and 
land 
improvements 
593,877 
79,643 
8,918 
664,602 
82,314 
8,609 
738,307 
Buildings 
6,337,675 
385,610 
38,425 
6,684,860 
691,264 
44,883 
7,331,241 
Equipment, 
library 
books, 
and 
artwork 
2,334,477 
196,808 
80,753 
2,450,532 
218,538 
123,421 
2,545,649 
Construction 
in 
progress 
901,084 
723,737 
499,668 
1,125,153 
1,101,656 
862,333 
1,364,476 
Total 
capital 
assets 
10,468,975 
1,397,111 
627,764 
11,238,322 
2,141,416 
1,039,296 
12,340,442 
Less 
accumulated 
depreciation: 
Infrastructure 
and 
land 
improvements 
334,785 
22,135 
8,456 
348,464 
25,454 
8,308 
365,610 
Buildings 
2,787,220 
171,910 
36,013 
2,923,117 
189,270 
38,088 
3,074,299 
Equipment 
and 
library 
books 
1,602,158 
202,600 
73,916 
1,730,842 
213,199 
119,741 
1,824,300 
Total 
accumulated 
depreciation 
4,724,163 
396,645 
118,385 
5,002,423 
427,923 
166,137 
5,264,209 
Capital 
assets, 
net 
$ 
5,744,812 
1,000,466 
509,379 
6,235,899 
1,713,493 
873,159 
7,076,233 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


7. 
Long-term 
Liabilities 
The 
State 
University 
has 
entered 
into 
capital 
leases 
and 
other 
financing 
agreements 
with 
DASNY 
to 
finance 
most 
of 
its 
capital 
facilities. 
The 
State 
University 
has 
also 
entered 
into 
financing 
arrangements 
with 
the 
New 
York 
Power 
Authority 
under 
the 
statewide 
energy 
services 
program. 
Equipment 
purchases 
are 
also 
made 
through 
DASNY�s 
Tax-exempt 
Equipment 
Leasing 
Program 
(TELP), 
various 
state 
sponsored 
equipment 
leasing 
programs, 
or 
private 
financing 
arrangements. 


At 
June 
30, 
2010 
and 
2009, 
other 
than 
facilities 
obligations, 
which 
are 
included 
as 
of 
March 
31, 
2010 
and 
2009, 
total 
obligations 
are 
summarized 
in 
Table 
D. 


Educational 
Facilities 


The 
State 
University, 
through 
DASNY, 
has 
entered 
into 
financing 
agreements 
to 
finance 
various 
educational 
facilities 
which 
have 
a 
maximum 
30-year 
life. 
Athletic 
facility 
debt 
is 
aggregated 
with 
educational 
facility 
debt. 
Debt 
service 
is 
paid 
by, 
or 
from 
specific 
appropriations 
of, 
the 
State. 


During 
the 
year, 
Personal 
Income 
Tax 
Revenue 
Bonds 
(PIT) 
were 
issued 
for 
the 
purpose 
of 
financing 
capital 
construction 
and 
major 
rehabilitation 
for 
educational 
facilities 
in 
the 
amount 
of 
$585.6 
million. 
Also, 
during 
the 
year 
PIT 
bonds 
were 
issued 
totaling 
$368.1 
million 
in 
order 
to 


Table 
D 
(in 
thousands) 


refund 
$402.3 
million 
of 
the 
State 
University�s 
existing 
educational 
facilities 
obligations. 
The 
result 
will 
produce 
an 
estimated 
gain 
of 
$34 
million 
in 
future 
cash 
flow, 
with 
an 
estimated 
present 
value 
gain 
of 
$32 
million. 
The 
deferred 
accounting 
loss 
was 
$9.4 
million. 


In 
June 
2010, 
the 
State 
University 
entered 
into 
agreements 
with 
DASNY 
to 
issue 
obligations 
totaling 
$800 
million 
for 
the 
construction 
and 
rehabilitation 
of 
the 
State 
University�s 
educational 
facilities. 


Residence 
Hall 
Facilities 


The 
State 
University 
has 
entered 
into 
capital 
lease 
agreements 
for 
residence 
hall 
facilities. 
DASNY 
bonds 
for 
residence 
hall 
facilities, 
which 
have 
a 
maximum 
30-year 
life, 
are 
repaid 
from 
room 
rentals 
and 
other 
residence 
hall 
revenues. 
Upon 
repayment 
of 
the 
bonds, 
including 
interest 
thereon, 
and 
the 
satisfaction 
of 
all 
other 
obligations 
under 
the 
lease 
agreements, 
DASNY 
shall 
convey 
to 
the 
State 
University 
all 
rights, 
title, 
and 
interest 
in 
the 
assets 
financed 
by 
the 
capital 
lease 
agreements. 
Residence 
hall 
facilities 
revenue 
realized 
during 
the 
year 
from 
facilities 
from 
which 
there 
are 
bonds 
outstanding 
is 
pledged 
as 
a 
security 
for 
debt 
service 
and 
is 
assigned 
to 
DASNY 
to 
the 
extent 
required 
for 
debt 
service 
purposes. 
Any 
excess 
funds 
pledged 
to 
DASNY 
are 
available 
for 
residence 
hall 
capital 
and 
operating 
purposes. 


26
July 
1, 
2009 
For 
the 
2010 
Fiscal 
Year 
Long-term 
debt: 
Educational 
facilities 
$ 
5,096,730 
Residence 
hall 
facilities 
974,760 
Capital 
lease 
arrangements 
196,065 
Other 
long-term 
debt 
57,123 
Total 
long-term 
debt 
6,324,678 
Other 
long-term 
liabilities: 
Postemployment 
and 
postretirement 
obligations 
and 
compensated 
absences 
1,926,369 
Loan 
from 
State 
85,998 
Litigation 
204,575 
Other 
long-term 
liabilities 
115,896 
Total 
other 
long-term 
liabilities 
2,332,838 
Total 
long-term 
liabilities 
$ 
8,657,516 
Additions 
953,666 
100,120 
41,431 
648 
1,095,865 
842,141 
209 
214,599 
36,308 
1,093,257 
2,189,122 
Reductions 
593,907 
31,170 
53,591 
13,315 
691,983 
378,955 
25,562 
35,359 
9,203 
449,079 
1,141,062 
June 
30, 
2010 
5,456,489 
1,043,710 
183,905 
44,456 
6,728,560 
2,389,555 
60,645 
383,815 
143,001 
2,977,016 
9,705,576 
Current 
Portion 
213,552 
32,130 
45,476 
13,746 
304,904 
163,801 
17,244 
67,897 
6,670 
255,612 
560,516 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


Table 
D, 
continued 
(in 
thousands) 


July 
1, 
June 
30, 
Current 


For 
the 
2009 
Fiscal 
Year 


2008 
Additions 
Reductions 
2009 
Portion 


Long-term 
debt: 


Educational 
facilities 
Residence 
hall 
facilities 
Capital 
lease 
arrangements 
Other 
long-term 
debt 


Total 
long-term 
debt 


Other 
long-term 
liabilities: 


Postemployment 
and 
postretirement 


obligations 
and 
compensated 
absences 
Loan 
from 
State 
Litigation 
Other 
long-term 
liabilities 


Total 
other 
long-term 
liabilities 


Total 
long-term 
liabilities 


$ 
4,782,950 
542,812 
229,032 
5,096,730 
189,258 
873,355 
129,375 
27,970 
974,760 
31,170 
217,532 
41,284 
62,751 
196,065 
49,584 
61,835 
13,186 
17,898 
57,123 
12,898 


5,935,672 
726,657 
337,651 
6,324,678 
282,910 


1,527,385 
826,731 
427,747 
1,926,369 
160,766 
110,178 
1,383 
25,563 
85,998 
17,244 
109,157 
139,900 
44,482 
204,575 
39,091 
108,982 
11,220 
4,306 
115,896 
4,308 
1,855,702 
979,234 
502,098 
2,332,838 
221,409 
$ 
7,791,374 
1,705,891 
839,749 
8,657,516 
504,319 


27
7. 
Long-term 
Liabilities 
(continued) 
During 
the 
year, 
the 
State 
University 
entered 
into 
agreements 
with 
DASNY 
to 
issue 
residential 
hall 
facility 
obligations 
totaling 
$100.1 
million 
for 
the 
purpose 
of 
financing 
capital 
construction 
and 
major 
rehabilitation 
for 
residential 
hall 
facilities. 


In 
prior 
years, 
the 
State 
University 
defeased 
various 
obligations, 
whereby 
proceeds 
of 
new 
obligations 
were 
placed 
in 
an 
irrevocable 
trust 
to 
provide 
for 
all 
future 
debt 
service 
payments 
on 
the 
defeased 
obligations. 
Accordingly, 
the 
trust 
account 


assets 
and 
liabilities 
for 
the 
defeased 
obligations 
are 
not 
included 
in 
the 
State 
University�s 
financial 
statements. 
As 
of 
March 
31, 
2010, 
$917 
million 
and 
$231 
million 
of 
outstanding 
educational 
and 
residence 
hall 
facility 
obligations, 
respectively, 
were 
considered 
defeased. 


Capital 
Lease 
Arrangements 


The 
State 
University 
leases 
equipment 
under 
DASNY 
TELP, 
New 
York 
State 
Personal 
Income 
Tax 
Revenue 
Bonds, 
certificates 
of 
participation 


Debt 
service 
requirements 
of 
the 
long-term 
debt 
obligations 
as 
of 
June 
30, 
2010 
are 
as 
follows 
(in 
thousands): 


Fiscal 
year(s) 
Educational 
Facilities 
Residential 
Facilities 
Other 
Total 
2011 
2012 
2013 
2014 
2015 
2016-20 
2021-25 
2026-30 
2031-35 
2036-39 
Total 
$ 
213,553 
317,042 
267,827 
268,025 
294,371 
255,417 
305,709 
239,769 
305,403 
223,366 
1,154,385 
926,106 
1,042,702 
661,506 
926,269 
390,697 
663,800 
178,101 
282,470 
31,187 
$ 
5,456,489 
3,491,216 
Principal 
Interest 
32,130 
50,735 
35,480 
48,660 
38,530 
47,036 
41,095 
45,240 
41,670 
43,276 
213,010 
186,238 
211,230 
132,849 
201,185 
82,297 
157,755 
35,264 
71,625 
6,810 
1,043,710 
678,405 
Principal 
Interest 
59,221 
7,349 
53,346 
5,349 
43,296 
3,209 
21,947 
2,104 
11,598 
1,449 
29,099 
3,680 
7,201 
252 
1,673 
32 
980 
4 
228,361 
23,428 
Principal 
Interest 
--
304,904 
375,126 
356,653 
322,034 
376,197 
305,662 
368,751 
287,113 
358,671 
268,091 
1,396,494 
1,116,024 
1,261,133 
794,607 
1,129,127 
473,026 
822,535 
213,369 
354,095 
37,997 
6,728,560 
4,193,049 
Principal 
Interest 
Interest 
rates 
range 
from 
1.25% 
to 
7.5% 
Interest 
rates 
range 
from 
2.0% 
to 
6.0% 
Interest 
rates 
range 
from 
.40% 
to 
9.78% 



THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


28
7. 
Long-term 
Liabilities 
(continued) 
(COPs), 
vendor 
financing, 
or 
through 
statewide 
lease 
purchase 
agreements. 
The 
State 
University 
is 
responsible 
for 
lease 
debt 
service 
payments 
sufficient 
to 
cover 
the 
interest 
and 
principal 
amounts 
due 
under 
these 
arrangements. 


Loan 
From 
State 


In 
prior 
years, 
the 
State 
University 
experienced 
operating 
cash-flow 
deficits 
precipitated 
by 
cash-
flow 
difficulties 
experienced 
by 
its 
hospitals. 
In 
connection 
with 
these 
cash-flow 
deficits, 
as 
authorized 
by 
State 
Finance 
Law, 
the 
State 
University 
borrowed 
funds 
with 
interest 
from 
the 
short-term 
investment 
pool 
of 
the 
State. 
The 
amount 
outstanding 
under 
this 
borrowing 
from 
the 
State 
at 
June 
30, 
2010 
was 
$60.6 
million. 
During 
the 
year, 
$25.6 
million 
was 
paid 
on 
these 
loans. 


8. 
Retirement 
Plans 
Retirement 
Benefits 


There 
are 
three 
major 
retirement 
plans 
for 
State 
University 
employees: 
the 
New 
York 
State 
and 
Local 
Employees� 
Retirement 
System 
(ERS), 
the 
New 
York 
State 
Teachers� 
Retirement 
System 
(TRS), 
and 
the 
Teachers 
Insurance 
and 
Annuity 
Association 
-
College 
Retirement 
Equities 
Fund 
(TIAA-CREF). 
ERS 
is 
a 
cost-sharing, 
multiple-employer, 
defined 
benefit 
public 
plan 
administered 
by 
the 
State 
Comptroller. 
TRS 
is 
a 
cost-sharing, 
multiple-
employer, 
defined 
benefit 
public 
plan 
separately 
administered 
by 
a 
nine-member 
board. 
TIAA-CREF 
is 
a 
multiple-employer, 
defined 
contribution 
plan 
administered 
by 
separate 
boards 
of 
trustees. 
Substantially 
all 
full-time 
employees 
participate 
in 
the 
plans. 


Obligations 
of 
employers 
and 
employees 
to 
contribute, 
and 
related 
benefits, 
are 
governed 
by 
the 
New 
York 
State 
Retirement 
and 
Social 
Security 
Law 
(NYSRSSL) 
and 
Education 
Law. 
These 
plans 
offer 
a 
wide 
range 
of 
programs 
and 
benefits. 
ERS 
and 
TRS 
benefits 
are 
related 
to 
years 
of 
credited 
service 
and 
final 
average 
salary, 
vesting 
of 
retirement 
benefits, 
death 
and 
disability 
benefits, 
and 
optional 
methods 


of 
benefit 
payments. 
TIAA-CREF 
is 
a 
State 
University 
Optional 
Retirement 
Program 
(ORP) 
and 
offers 
benefits 
through 
annuity 
contracts. 


ERS 
and 
TRS 
provide 
retirement 
benefits 
as 
well 
as 
death 
and 
disability 
benefits. 
Benefits 
generally 
vest 
after 
five 
years 
of 
credited 
service. 
The 
NYSRSSL 
provides 
that 
all 
participants 
in 
ERS 
and 
TRS 
are 
jointly 
and 
severally 
liable 
for 
any 
actuarial 
unfunded 
amounts. 
Such 
amounts 
are 
collected 
through 
annual 
billings 
to 
all 
participating 
employers. 
Employees 
who 
joined 
ERS 
and 
TRS 
after 
July 
27, 
1976, 
and 
have 
less 
than 
ten 
years 
of 
service 
or 
membership 
are 
required 
to 
contribute 
3 
percent 
of 
their 
salary. 
Employee 
contributions 
are 
deducted 
from 
their 
salaries 
and 
remitted 
on 
a 
current 
basis 
to 
ERS 
and 
TRS. 
Employer 
contributions 
are 
actuarially 
determined 
for 
ERS 
and 
TRS. 


TIAA-CREF 
provides 
benefits 
through 
annuity 
contracts 
and 
provides 
retirement 
and 
death 
benefits 
to 
those 
employees 
who 
elected 
to 
participate 
in 
the 
ORP. 
Benefits 
are 
determined 
by 
the 
amount 
of 
individual 
accumulations 
and 
the 
retirement 
income 
option 
selected. 
All 
benefits 
generally 
vest 
after 
the 
completion 
of 
one 
year 
of 
service 
if 
the 
employee 
is 
retained 
thereafter. 
Employees 
who 
joined 
TIAA-CREF 
after 
July 
27, 
1976, 
and 
have 
less 
than 
ten 
years 
of 
service 
or 
membership 
are 
required 
to 
contribute 
3 
percent 
of 
their 
salary. 
Employer 
contributions 
range 
from 
8 
percent 
to 
15 
percent 
depending 
upon 
when 
the 
employee 
was 
hired. 


Employee 
contributions 
are 
deducted 
from 
their 
salaries 
and 
remitted 
on 
a 
current 
basis 
to 
TIAA-CREF. 


The 
State 
University�s 
total 
retirement-related 
payroll 
was 
$3 
billion 
and 
$2.8 
billion 
for 
the 
June 
30, 
2010 
and 
2009 
fiscal 
years, 
respectively. 
The 
payroll 
for 
2010 
and 
2009 
for 
State 
University 
employees 
covered 
by 
TIAA-CREF 
was 
$1.77 
billion 
and 
$1.73 
billion, 
ERS 
was 
$1.11 
billion 
and 
$993 
million, 
and 
TRS 
was 
$134 
million 
and 
$109 
million, 
respectively. 
Employer 
and 
employee 
contributions 
under 
each 
of 
the 
plans 
were 
as 
follows 
(in 
millions) 
for 
years 
2010, 
2009, 
and 
2008, 
respectively: 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


8. 
Retirement 
Plans 
(continued) 
2010 
2009 
2008 
Employer 
contributions: 
TIAA-CREF 
$206.5 
194.6 
167.8 
ERS 
42.8 
47.1 
48.6 
TRS 
8.4 
8.3 
8.3 
Employee 
contributions: 
TIAA-CREF 
$ 
31.8 
40.6 
43.6 
ERS 
15.6 
13.7 
11.5 
TRS 
1.3 
1.1 
1.0 
The 
employer 
contributions 
are 
equal 
to 
100 


percent 
of 
the 
required 
contributions 
under 
each 
of 
the 
respective 
plans. 


The 
Research 
Foundation 
maintains 
a 
separate 
non-contributory 
plan 
through 
TIAA-CREF 
for 
substantially 
all 
of 
its 
employees. 
Employees 
become 
fully 
vested 
in 
contributions 
made 
by 
the 
Research 
Foundation 
after 
three 
years 
of 
service. 
Contributions 
are 
allocated 
to 
individual 
employee 
accounts. 
Employer 
contributions 
are 
based 
on 
a 
percentage 
of 
regular 
salary 
and 
range 
from 
8 
percent 
to 
15 
percent. 
The 
payroll 
for 
Research 
Foundation 
employees 
covered 
by 
TIAA-CREF 
for 
its 
fiscal 
years 
ended 
June 
30, 
2010 
and 
2009 
was 
$359 
million 
and 
$350 
million, 
respectively. 
The 
Research 
Foundation 
pension 
contributions 
for 
fiscal 
years 
2010 
and 
2009 
were 
$31 
million 
and 
$28.2 
million, 
respectively. 
These 
contributions 
are 
equal 
to 
100 
percent 
of 
the 
required 
contributions 
for 
each 
year. 


Each 
retirement 
system 
issues 
a 
publicly 
available 
financial 
report 
that 
includes 
financial 
statements 
and 
supplementary 
information. 
The 
reports 
may 
be 
obtained 
by 
writing 
to: 


New 
York 
State 
and 
Local 
Employees� 


Retirement 
System 


110 
State 
Street 


Albany, 
New 
York 
12244 


New 
York 
State 
Teachers� 
Retirement 
System 


10 
Corporate 
Woods 
Drive 


Albany, 
New 
York 
12211 


Teachers 
Insurance 
and 
Annuity 
Association/ 


College 
Retirement 
Equities 
Fund 


730 
Third 
Avenue 


New 
York, 
New 
York 
10017 


Postemployment 
and 
Post-retirement 
Benefits 


The 
State, 
on 
behalf 
of 
the 
State 
University, 
provides 
health 
insurance 
coverage 
for 
eligible 
retired 
State 
University 
employees 
and 
their 
spouses 
as 
part 
of 
the 
New 
York 
State 
Health 
Insurance 
Plan 
(NYSHIP). 
NYSHIP 
offers 
comprehensive 
benefits 
through 
various 
providers 
consisting 
of 
hospital, 
medical, 
mental 
health, 
substance 
abuse 
and 
prescription 
drug 
programs. 
The 
State 
administers 
NYSHIP 
and 
has 
the 
authority 
to 
establish 
and 
amend 
the 
benefit 
provisions 
offered. 
NYSHIP 
is 
considered 
an 
agent 
multiple-employer 
defined 
benefit 
plan, 
is 
not 
a 
separate 
entity 
or 
trust, 
and 
does 
not 
issue 
stand-alone 
financial 
statements. 
The 
State 
University, 
as 
a 
participant 
in 
the 
plan, 
recognizes 
these 
other 
postemployment 
benefit 
(OPEB) 
expenses 
on 
an 
accrual 
basis. 


Employee 
contribution 
rates 
for 
NYSHIP 
are 
established 
by 
the 
State 
and 
are 
generally 
10 
percent 
for 
enrollee 
coverage 
and 
25 
percent 
for 
dependent 
coverage. 
NYSHIP 
premiums 
are 
being 
financed 
on 
a 
pay-as-you-go 
basis. 
There 
are 
no 
assets 
set 
aside 
to 
fund 
the 
plan. 
During 
the 
fiscal 
year, 
the 
State, 
on 
behalf 
of 
the 
State 
University, 
paid 
health 
insurance 
premiums 
of 
$209.8 
million. 
The 
State 
University�s 
annual 
OPEB 
cost 
and 
increase 
in 
the 
OPEB 
obligation 
for 
the 
years 
ended 
June 
30, 
2010, 
2009, 
and 
2008 
were 
as 
follows 
(in 
thousands): 


2010 
2009 
2008 
Annual 
OPEB 
cost$ 
638,847 
625,691 
749,962 
Benefits 
paid 
Increase 
in 
OPEB 
Obligation 
Net 
obligation 
at 
beginning 
of 
year 
Net 
obligation 
at 
(209,847) 
429,000 
1,509,618 
1,085,821 
(201,894) 
423,797 
(234,293) 
515,669 
570,152 


end 
of 
year 
$ 
1,938,618 
1,509,618 
1,085,821 


The 
components 
of 
the 
State 
University�s 
OPEB 
obligation 
include 
the 
total 
annual 
required 
contribution 
(ARC) 
of 
$632.9 
million 
(comprised 
of 
service 
costs 
of 
$233.2 
million, 
amortization 
of 
unfunded 
actuarial 
liability 
of 
$373.9 
million, 
and 
interest 
costs 
of 
$25.8 
million), 
ARC 
reduction 
of 
$58.1 
million, 
and 
interest 
costs 
of 
$64 
million. 
The 
unfunded 
actuarial 
accrued 
liability 
totaled 
$9.56 


29

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


30
8. 
Retirement 
Plans 
(continued) 
billion 
as 
of 
the 
April 
1, 
2008 
actuarial 
valuation 
date 
and 
is 
being 
amortized 
over 
an 
open 
period 
of 
thirty 
years 
using 
the 
level 
percentage 
of 
projected 
payroll 
amortization 
method. 
The 
State 
University 
total 
retirement 
related 
payroll 
for 
the 
June 
30, 
2010 
fiscal 
year 
was 
$3 
billion. 


The 
actuarial 
valuation 
utilizes 
a 
frozen 
entry 
age 
actuarial 
cost 
method. 
The 
actuarial 
assumptions 
include 
a 
4.2 
percent 
discount 
rate, 
payroll 
growth 
rate 
of 
3.5 
percent, 
and 
an 
annual 
healthcare 
cost 
trend 
rate 
for 
medical 
coverage 
of 
10 
percent 
initially, 
reduced 
by 
decrements 
to 
a 
rate 
of 
5 
percent 
after 
6 
years. 


Projections 
of 
benefits 
are 
based 
on 
the 
plan 
and 
include 
the 
types 
of 
benefits 
provided 
at 
the 
time 
of 
each 
valuation. 
Actuarial 
valuations 
involve 
estimates 
of 
the 
value 
of 
reported 
amounts 
and 
assumptions 
about 
the 
probability 
of 
future 
events, 
and 
actual 
results 
are 
considered 
for 
future 
valuations. 
The 
actuarial 
methods 
and 
assumptions 
used 
are 
designed 
to 
reduce 
short-term 
volatility 
in 
reported 
amounts 
and 
reflect 
a 
long-term 
perspective. 


Health 
care 
delivery 
is 
going 
through 
a 
revolution 
due 
to 
the 
enactment 
of 
health 
care 
reform 
which 
will 
have 
an 
impact 
on 
future 
health 
care 
costs. 
A 
number 
of 
the 
provisions 
of 
the 
health 
care 
reform 
will 
need 
to 
be 
considered 
in 
future 
actuarial 
valuations 
to 
measure 
postemployment 
obligations. 


The 
Research 
Foundation 
sponsors 
a 
separate 
single 
employer 
defined 
benefit 
post-retirement 
plan 
that 
provides 
health 
insurance 
and 
medical 
benefits 
that 
covers 
substantially 
all 
non-student 
Research 
Foundation 
employees. 
The 
Research 
Foundation 
Board 
of 
Directors 
administers 
the 
plan 
and 
has 
the 
authority 
to 
establish 
and 
amend 
the 
benefit 
provisions 
offered. 
Contribution 
rates 
for 
employees 
hired 
after 
1985 
are 
10 
percent 
for 
employee 
coverage 
and 
25 
percent 
for 
dependent 
coverage. 


Contributions 
by 
the 
Research 
Foundation 
are 
made 
pursuant 
to 
a 
funding 
policy 
established 
by 
its 
Board 
of 
Directors 
and 
were 
$15.6 
million 
and 
$13.3 
million 
during 
the 
2010 
and 
2009 
fiscal 
years, 
respectively. 
Assets 
are 
held 
in 
a 
Voluntary 
Employee 
Benefit 
Association 
(VEBA) 
trust, 
established 
in 


2009, 
and 
are 
considered 
plan 
assets 
in 
determining 
the 
funded 
status 
or 
funding 
progress 
of 
the 
plan 
under 
GASB 
reporting 
and 
measurement 
standards. 
The 
actuarial 
accrued 
liability 
at 
June 
30, 
2010 
and 
2009 
was 
$211 
million 
and 
$188.8 
million, 
respectively. 
The 
payroll 
for 
employees 
covered 
by 
the 
plan 
for 
the 
2010 
fiscal 
year 
was 
$237.8 
million. 
The 
plan 
did 
not 
issue 
stand-alone 
financial 
statements. 
The 
plan 
will 
issue 
stand-alone 
financial 
statements 
for 
the 
2010 
calendar 
year. 


The 
Research 
Foundation�s 
annual 
cost 
and 
increase 
in 
the 
OPEB 
obligation 
for 
the 
years 
ended 
June 
30, 
2010, 
2009, 
and 
2008, 
respectively, 
were 
as 
follows 
(in 
thousands): 


2010 
2009 
2008 


Annual 
OPEB 
cost 
$ 
37,843 
27,598 
17,227 


Benefits 
paid 
(6,341) 
(5,542) 
(4,580) 


Contribution 
to 
plan 
(9,241) 
(66,296) 
-

Change 
in 
OPEB 
Obligation 
22,261 
(44,240) 
12,647 


Net 
obligation 
at 
beginning 
of 
year 
188,777 
233,017 
220,370 


Net 
obligation 
at 
end 
of 
year 
$ 
211,038 
188,777 
233,017 


The 
components 
of 
the 
Research 
Foundation 
OPEB 
obligation 
at 
June 
30, 
2010 
include 
the 
total 
annual 
required 
contribution 
(ARC) 
of 
$226.6 
million 
(comprised 
of 
service 
costs 
of 
$11.3 
million 
and 
amortization 
of 
unfunded 
actuarial 
accrued 
liability 
of 
$215.3 
million), 
ARC 
reduction 
of 
$202 
million, 
and 
interest 
costs 
of 
$13.2 
million. 
The 
unfunded 
actuarial 
accrued 
liability 
is 
amortized 
over 
one 
year. 
The 
cost 
of 
the 
benefits 
provided 
under 
this 
plan 
is 
recognized 
on 
an 
actuarial-
determined 
basis 
using 
the 
projected 
unit 
cost 
method. 
Under 
this 
method, 
actuarial 
assumptions 
are 
made 
based 
on 
employee 
demographics 
and 
medical 
trend 
rates 
to 
calculate 
the 
accrued 
benefit 
cost. 
The 
actuarial 
assumptions 
include 
a 
7 
percent 
discount 
rate, 
and 
an 
initial 
healthcare 
cost 
trend 
rate 
range 
of 
6.75 
to 
8.25 
percent 
grading 
down 
to 
5 
percent. 
A 
blended 
discount 
rate 
was 
utilized 
using 
the 
expected 
investment 
return 
on 
investments 
of 
the 
plan 
and 
investments 
held 
in 
the 
operational 
pool 
expected 
to 
be 
used 
to 
fund 
future 
OPEB 
obligations. 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


9. 
Commitments 
The 
State 
University 
has 
entered 
into 
contracts 
for 
the 
construction 
and 
improvement 
of 
various 
projects. 
At 
March 
31, 
2010, 
these 
outstanding 
contract 
commitments 
totaled 
approximately 
$1.127 
billion. 


The 
State 
University 
is 
also 
committed 
under 
numerous 
operating 
leases 
covering 
real 
property 
and 
equipment. 
Rental 
expenditures 
reported 
for 
the 
years 
ended 
June 
30, 
2010 
and 
2009 
under 
such 
operating 
leases 
were 
$34.4 
million 
and 
$32.3 
million, 
respectively. 
The 
following 
is 
a 
summary 
of 
the 
future 
minimum 
rental 
commitments 
under 
non-cancelable 
real 
property 
and 
equipment 
leases 
with 
terms 
exceeding 
one 
year 
(in 
thousands): 


Year 
ending 
June 
30: 
2011 
2012 
2013 
2014 
2015 
2016-20 
2021-25 
2026-39 
$ 
31,625 
27,407 
23,349 
18,314 
14,170 
43,099 
24,520 
826 
Total 
$ 
183,310 
10. 
Contingencies 


The 
State 
is 
contingently 
liable 
in 
connection 
with 
claims 
and 
other 
legal 
actions 
involving 
the 
State 
University, 
including 
those 
currently 
in 
litigation 
arising 
in 
the 
normal 
course 
of 
State 
University 
activities. 
The 
State 
University 
does 
not 
carry 
malpractice 
insurance 
and, 
instead, 
administers 
these 
types 
of 
cases 
in 
the 
same 
manner 
as 
all 
other 
claims 
against 
the 
State 
involving 
State 
University 
activities 
in 
that 
any 
settlements 
of 
judgments 
and 
claims 
are 
paid 
by 
the 
State 
from 
an 
account 
established 
for 
this 
purpose. 
With 
respect 
to 
pending 
and 
threatened 
litigation 
the 
State 
University 
revised 
its 
methodology 
for 
determining 
the 
medical 
malpractice 
liability 
for 
the 
2010 
fiscal 
year 
to 
include 
incurred 
but 
not 
reported 
(IBNR) 
lost 
estimates. 
The 
estimate 
of 
IBNR 
losses 
is 
actuarilly 
determined 
based 
on 
historical 
experience 
using 
a 
discounted 
present 
value 
of 
estimated 
future 
cash 
payments. 
The 
State 
University 
has 
recorded 
a 
liability 
and 
a 


corresponding 
appropriation 
receivable 
of 
approximately 
$384 
million 
at 
June 
30, 
2010 
(almost 
entirely 
related 
to 
hospitals 
and 
clinics) 
for 
unfavorable 
judgments, 
both 
anticipated 
and 
awarded 
but 
not 
yet 
paid. 


Gyrodyne 
Company 
of 
America 
Inc. 
(Gyrodyne) 
is 
a 
real 
estate 
trust 
based 
in 
Long 
Island 
New 
York. 
In 
2005 
the 
State 
University 
of 
New 
York 
at 
Stony 
Brook 
claimed, 
by 
eminent 
domain, 
approximately 
245 
acres 
of 
land 
owned 
by 
Gyrodyne 
who 
is 
challenging 
the 
amount 
of 
compensation 
($26.3 
million) 
they 
received 
from 
the 
State. 
The 
State�s 
compensation 
amount 
was 
based 
on 
the 
appraisal 
they 
commissioned. 
Gyrodyne 
also 
sought 
their 
own 
appraisal 
which 
valued 
the 
property 
at 
$125 
million. 
In 
June 
2010, 
the 
Court 
of 
Claims 
of 
the 
State 
issued 
an 
opinion 
requiring 
the 
State 
(State 
University) 
to 
pay 
Gyrodyne 
an 
additional 
$98.7 
million 
for 
the 
land. 
The 
State 
is 
currently 
perfecting 
its 
appeal 
for 
this 
case 
and 
at 
this 
time 
the 
potential 
outcome 
cannot 
be 
determined. 
Because 
a 
reasonable 
estimate 
of 
the 
ultimate 
outcome 
of 
the 
case 
cannot 
be 
determined, 
the 
State 
University 
has 
not 
recorded 
any 
activity 
related 
to 
the 
recent 
ruling 
in 
the 
accompanying 
financial 
statements. 


The 
State 
University 
is 
exposed 
to 
various 
risks 
of 
loss 
related 
to 
damage 
and 
destruction 
of 
assets, 
injuries 
to 
employees, 
damage 
to 
the 
environment 
or 
noncompliance 
with 
environmental 
requirements, 
and 
natural 
and 
other 
unforeseen 
disasters. 
The 
State 
University 
has 
insurance 
coverage 
for 
its 
residence 
hall 
facilities. 
However, 
in 
general, 
the 
State 
University 
does 
not 
insure 
its 
educational 
buildings, 
contents 
or 
related 
risks 
and 
does 
not 
insure 
its 
vehicles 
and 
equipment 
for 
claims 
and 
assessments 
arising 
from 
bodily 
injury, 
property 
damages, 
and 
other 
perils. 
Unfavorable 
judgments, 
claims, 
or 
losses 
incurred 
by 
the 
State 
University 
are 
covered 
by 
the 
State 
on 
a 
self-insured 
basis. 
The 


State 
does 
employees. 
have 
fidelity 
insurance 
on 
State 
11. 
Related 
Parties 
The 
State 
University�s 
single 
largest 
source 
of 


revenue 
is 
State 
appropriations. 
State 
appropriations 
take 
the 
form 
of 
direct 
assistance, 
debt 
service 
on 
educational 
facility 
and 
PIT 
bonds, 
fringe 
benefits 


31

THESTATEUNIVERSITYOFNEWYORKTHESTATEUNIVERSITYOFNEWYORK
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


32
for 
State 
employees, 
and 
litigation 
expenses 
for 
which 
the 
State 
is 
responsible. 
State 
appropriations 
totaled 
$2.97 
billion 
and 
$3.06 
billion 
and 
represented 
approximately 
33 
percent 
and 
36 
percent 
of 
total 
revenues 
for 
the 
2010 
and 
2009 
fiscal 
years, 
respectively. 
The 
State 
University�s 
continued 
operational 
viability 
is 
substantially 
dependent 
upon 
a 
consistent 
and 
proportionate 
level 
of 
ongoing 
State 
support. 


12. 
Federal 
Grants 
and 
Contracts 
and 
Third-Party 
Reimbursement 
Substantially 
all 
federal 
grants 
and 
contracts 
are 
subject 
to 
financial 
and 
compliance 
audits 
by 
the 
grantor 
agencies 
of 
the 
federal 
government. 


Disallowances, 
if 
any, 
as 
a 
result 
of 
these 
audits 
may 
become 
liabilities 
of 
the 
State 
University. 
State 
University 
management 
believes 
that 
no 
material 
disallowances 
will 
result 
from 
audits 
by 
the 
grantor 
agencies. 


The 
State 
University 
hospitals 
have 
agreements 
with 
third-party 
payors, 
which 
provide 
for 
reimbursement 
to 
the 
hospitals 
at 
amounts 
different 
from 
their 
established 
charges. 
Contractual 
service 
allowances 
and 
discounts 
(reflected 
through 
State 
University 
hospitals 
and 
clinics 
sales 
and 
services) 
represent 
the 
difference 
between 
the 
hospitals 
established 
rates 
and 
amounts 
reimbursed 
by 
third-
party 
payors. 
The 
State 
University 
has 
made 
provision 
in 
the 
accompanying 
financial 
statements 
for 
estimated 
retroactive 
adjustments 
relating 
to 
third-party 
payors 
cost 
reimbursement 
items. 


13. 
Subsequent 
Events 
In 
September 
2010, 
the 
State 
University 
entered 
into 
agreements 
with 
DASNY 
to 
issue 
obligations 
totaling 
$128.3 
million 
for 
the 
purpose 
of 
financing 
capital 
construction 
and 
major 
rehabilitation 
for 
residential 
hall 
facilities. 


In 
October 
2010, 
the 
State 
of 
New 
York 
reduced 
the 
2010-11 
State 
appropriated 
support 
to 
the 
State-operated 
campuses 
by 
$23 
million. 
The 
State 
University�s 
financial 
position 
may 
be 
affected 
by 
this 
reduction. 


14. 
Foundations 
Discretely 
presented 
component 
unit 
information 
is 
comprised 
principally 
of 
the 
campus-related 
foundations. 
These 
foundations 
are 
nonprofit 
organizations 
responsible 
for 
the 
fiscal 
administra-
tion 
of 
revenues 
and 
support 
received 
for 
the 
promotion, 
development 
and 
advancement 
of 
the 
welfare 
of 
campuses, 
the 
State 
University 
and 
its 
students, 
faculty, 
staff 
and 
alumni. 
The 
foundations 
receive 
the 
majority 
of 
their 
support 
and 
revenues 
through 
contributions, 
gifts 
and 
grants 
and 
provide 
benefits 
to 
their 
campus, 
students, 
faculty, 
staff 
and 
alumni. 
In 
addition, 
the 
reported 
amounts 
include 
foundation 
student 
housing 
corporations, 
nonprofit 
organizations 
that 
operate 
and 
administer 
certain 
housing 
and 
related 
services 
for 
students. 
All 
the 
foundations 
are 
exempt 
from 
federal 
income 
taxes 
on 
related 
income 
pursuant 
to 
Section 
501(a) 
of 
the 
Internal 
Revenue 
Code. 
All 
of 
the 
financial 
data 
for 
these 
organizations 
was 
derived 
from 
each 
entity�s 
individual 
audited 
financial 
statements, 
reported 
in 
accordance 
with 
generally 
accepted 
accounting 
principles 
promulgated 
by 
FASB, 
the 
majority 
of 
which 
have 
a 
June 
30 
fiscal 
year 
end. 


During 
the 
years 
ended 
June 
30, 
2010 
and 
2009, 
the 
foundations 
distributed 
$43 
million 
and 
$43.1 
million, 
respectively, 
to 
the 
State 
University, 
principally 
for 
scholarships 
and 
support 
of 
campus 
program 
activities. 


Separately 
issued 
financial 
statements 
of 
the 
foundations 
and 
other 
related 
entities 
may 
be 
obtained 
by 
writing 
to: 


The 
State 
University 
of 
New 
York 


System 
Administration 


Office 
of 
the 
University 
Controller 


State 
University 
Plaza, 
N-514 


Albany, 
New 
York 
12246 


Transfer 
to 
the 
Foundations 


During 
2009, 
the 
State 
University 
Board 
of 
Trustees 
authorized 
the 
transfer 
of 
title 
of 
substantially 
all 
of 
the 
assets 
held 
in 
the 
State 
University 
Endowment 
Fund 
to 
the 
campus 
foundations. 
Three 
foundations 
which 
received 
their 
allocable 
share 
of 
the 
endowment 
fund 
have 



2010ANNUALFINANCIALREPORT2010ANNUALFINANCIALREPORT
Notes 
to 
Financial 
Statements 


June 
30, 
2010 
and 
2009 


a 
year-end 
other 
than 
June 
30 
and 
the 
transfer 
occurred 
after 
their 
year-end. 
As 
a 
result 
of 
the 
transfer, 
the 
foundations 
recognized 
$50 
million 
and 
$235 
million 
in 
revenue 
for 
the 
fiscal 
years 
ended 
June 
30, 
2010 
and 
2009, 
respectively. 


Net 
Asset 
Classifications 


Unrestricted 
net 
assets 
represent 
resources 
whose 
uses 
are 
not 
restricted 
by 
donor-imposed 
stipulations 
and 
are 
generally 
available 
for 
the 
support 
of 
the 


14. 
Foundations 
(continued) 
State 
University 
campus 
and 
foundation 
programs 
and 
activities. 
Temporarily 
restricted 
net 
assets 
represent 
resources 
whose 
use 
is 
limited 
by 
donor-
imposed 
stipulations 
that 
either 
expire 
by 
the 
passage 
of 
time 
or 
are 
removed 
by 
specific 
actions. 
Permanently 
restricted 
net 
assets 
represent 
resources 
that 
donors 
have 
stipulated 
must 
be 
maintained 
permanently. 
The 
income 
derived 
from 
the 
permanently 
restricted 
net 
assets 
is 
permitted 
to 
be 
spent 
in 
part 
or 
in 
whole, 
restricted 
only 
by 
the 
donors� 
wishes. 
The 
beginning 
net 
asset 
amounts 
have 
been 
revised 
from 
those 
previously 
reported 
to 
reclassify 
amounts 
to 
conform 
with 
donor 
intentions. 
As 
a 
result, 
temporarily 
restricted 
net 
assets 
decreased 
$5.8 
million 
and 
permanently 
restricted 
and 
unrestricted 
net 
assets 
were 
increased 
by 
$.7 
million 
and 
$5.1 
million, 
respectively. 


Investments 


All 
investments 
with 
readily 
determinable 
fair 
values 
have 
been 
reported 
in 
the 
financial 
statements 
at 
fair 
value. 
Realized 
and 
unrealized 
gains 
and 
losses 
are 
recognized 
in 
the 
statement 
of 
activities. 
Gains 
or 
losses 
on 
investments 
are 
recognized 
as 
increases 
or 
decreases 
in 
unrestricted 
net 
assets 
unless 
their 
use 
is 
temporarily 
or 
permanently 
restricted 
by 
explicit 
donor 
stipulations 
or 
by 
law. 
Investments 
of 
the 
State 
University 
foundations 
were 
$1.2 
billion 
and 
$982.8 
million 
as 
of 
June 
30, 
2010 
and 
2009, 
respectively. 


The 
composition 
of 
investments 
is 
as 
follows 
(in 
thousands): 


2010 
Equities 
-domestic 
$ 
347,134 


Equities 
-international 
199,603 
Non-equities 
532,186 
Real 
estate 
investments 
33,666 
Equity 
partmerships 
61,428 
Hedge 
funds 
52,306 
Other 
investments 
12,783 


Total 
investments 
$ 
1,239,106 
Capital 
Assets 


2009 
266,670 
213,668 
352,420 
38,698 
31,765 
74,015 


5,597 
982,833 


Capital 
assets 
are 
stated 
at 
cost, 
if 
purchased, 
or 
fair 
value 
at 
date 
of 
receipt, 
if 
acquired 
by 
gift. 
Land 
improvements, 
buildings, 
and 
equipment 
are 
depreciated 
over 
their 
estimated 
useful 
lives 
using 
the 
straight-line 
method. 
Capital 
assets, 
net 
of 
accumulated 
depreciation, 
totaled 
$386.1 
million 
and 
$361.2 
million 
at 
fiscal 
year 
end 
2010 
and 
2009, 
respectively. 
Capital 
asset 
classifications 
are 
summarized 
as 
follows 
(in 
thousands): 


33
Land 
and 
land 
improvements 
Buildings 
Equipment 
Artwork 
and 
library 
books 
Construction 
in 
progress 


Total 
capital 
assets 
Less 
accumulated 
depreciation 
Capital 
assets, 
net 


Long-term 
Debt 


2010 
2009 
$ 
34,865 
32,627 


380,741 
358,377 
22,797 
21,167 
22,399 
21,761 
33,817 
22,240 
494,619 
456,172 
108,567 
95,004 
$ 
386,052 
361,168 


The 
Foundations 
have 
entered 
into 
various 
financing 
arrangements, 
principally 
through 
the 
issuance 
of 
Industrial 
Development 
Agency 
bonds 
and 
Housing 
Authority 
bonds, 
for 
the 
construction 
of 
student 
residence 
hall 
facilities. 
The 
following 
is 
a 
summary 
of 
the 
future 
minimum 
annual 
debt 
service 
requirements 
for 
the 
next 
five 
years 
and 
thereafter 
(in 
thousands): 


Year 
ending 
June 
30: 
2011 
$ 
24,761 
2012 
14,295 
2013 
11,177 
2014 
17,880 
2015 
15,488 
Thereafter 
294,187 
$ 
377,788 



ANNUAL 
FINANCIAL 
REPORT 
2010 


The 
State 
University 
of 
New 
York 
State 
University 
Plaza 
Albany, 
NY 
12246 
www.suny.edu