No t e s t o Co n s o l i d a t e d F i n a n c i a l S t a t eme n t s J u n e 3 0 , 2 0 2 3 a n d 2 0 2 2 3. Liquidity and Availability of Resources As of June 30, 2023 and 2022, financial assets available within one year for general expenditure, such as operating expenses, scheduled principal payments on debt and other current obligations, and capital construction costs not financed with debt, were as follows (in thousands): 2023 2022 Cash and cash equivalents $ 366 $ 24,395 Investments 353,621 317,539 Tuition and other receivables, net 44,934 41,632 Pledges receivable, current portion, net 2,496 2,365 Endowment investments appropriated for spending in the following year 3,859 4,685 Financial assets available within one year for general expenditures $ 405,276 $ 390,616 Assets with purpose restrictions or designations that may be satisfied through general expenditure within the next year are considered available. In addition to these available financial assets, a significant portion of the university’s annual expenditures will be funded by current year operating revenues including tuition, grants and contracts, and auxiliary operations. As part of the university’s liquidity management strategy, the university structures its financial assets to be available as its general expenditures, liabilities and other obligations come due. In addition, the university invests cash in excess of daily requirements in short-term working capital investments. Additionally, the university has board-designated endowment funds of $63.6 million and $54.1 million as of June 30, 2023 and 2022, respectively. Although the university does not intend to spend from its board-designated endowment funds, other than amounts appropriated annually for expenditure in accordance with the university’s investment and spending policy, amounts from its board-designated endowment could be made available if necessary. However, both the board-designated and donor-restricted endowments contain investments with lock-up provisions that reduce the total investments that could be made available (see Note 8 for disclosures about investments). The university also has $33.9 million and $33.2 million in cash and investments as of June 30, 2023 and June 30, 2022, respectively, held by its wholly-owned captive insurance company (see Note 17) that are designated for insurance-related reserves, the total of which exceeds actuarially determined accrued insurance costs. Finally, not included in the table above, are other cash and investments of $295.6 million and $279.5 million as of June 30, 2023 and 2022, respectively, which could be made available in part for general expenditure. However, these investments are either subject to a long-term investment strategy (containing investments with lock-up provisions that reduce the total that could be liquidated, see Note 8) or are intended to support future capital expenditures (including bond proceeds received during fiscal 2022, see Note 9). 4. Tuition and Other Receivables Tuition and other receivables at June 30 consist of the following (in thousands): 2023 2022 Student accounts, net of allowance of $2,323 in 2023 and $1,826 in 2022 $ 19,676 $ 17,376 Unreimbursed grant and contract expenditures 13,941 13,286 Health centers’ patient accounts, net of allowance of $2,427 in 2023 and $2,035 in 2022 855 1,220 Accrued interest 3,602 3,274 Other 6,860 6,476 Total $ 44,934 $ 41,632 24
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