REPORT NO. 2011-164 MARCH 2011 HILLSBOROUGH COMMUNITY COLLEGE Financial Audit_part2 pot

MARCH 2011 REPORT NO. 2011-164
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Operating Revenues: College
(In Thousands)

College operating revenue changes were primarily the result of a $3.2 million increase in student tuition and fees due
to enrollment growth and an 8 percent increase in tuition and fee rates in the 2009-10 fiscal year.
Operating Expenses
Expenses are categorized as operating or nonoperating. The majority of the College’s expenses are operating
expenses as defined by GASB Statement No. 35. GASB gives financial reporting entities the choice of reporting
operating expenses in the functional or natural classifications. The College has chosen to report the expenses in their
natural classification on the statement of revenues, expenses, and changes in net assets and has displayed the
functional classification in the notes to financial statements.
Operating expenses for the College and its component unit for the 2009-10 and 2008-09 fiscal years ended are
presented in the following table:
Operating Expenses
(In Thousands)
6-30-10 6-30-09 6-30-10 6-30-09
Operating Expenses
Personnel Services 73,783$ 71,049$ $ $
Scholarships and Waivers 32,406 18,239 1,766 2,027
Utilities and Communications 4,897 4,921
Contractual Services 11,934 10,334
Other Services and Expenses 6,607 6,749 2,643 3,079
Materials and Supplies 22,173 16,687
Depreciation 7,808 6,832 852 859
Total Operating Expenses
159,608$ 134,811$ 5,261$ 5,965$
College Component Unit

$34,681
$3,700
$265
$394
$434
$7,486
$1,483
$31,443
$3,271
$817
$96
$489
$6,695
$1,463
$0 $25,000 $50,000
Student Tuition and Fees, Net
Federal Grants and Contracts
State and Local Grants and Contracts
Nongovernmental Grants and Contracts
Sales and Services of Educational
Departments
Auxiliary Enterprises, Net
Other
2008-09
2009-10
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The following chart presents the College’s operating expenses for the 2009-10 and 2008-09 fiscal years:

Operating Expenses: College
(In Thousands)

College operating expenses increased by $24.8 million from the 2008-09 fiscal year. Operating expenses increased
primarily as a result of a 3.8 percent increase in personnel services, a 77.7 percent increase in scholarships and waivers,
and a 32.9 percent increase in materials and supplies. The increase in personnel services is primarily due to the
increase in cost for instruction as a result of the enrollment growth experienced in the 2009-10 fiscal year. The cost
for instructional salaries and wages increased by 6.3 percent in the 2009-10 fiscal year. Scholarships and waivers
increased as a result of additional scholarship awards resulting from a 67 percent increase in student financial aid
awarded over the prior fiscal year. Materials and supplies increased as a result of purchases for major information
technology enhancement projects and direct material purchases for construction projects.
Nonoperating Revenues and Expenses
Certain revenue sources that the College relies on to provide funding for operations, including State appropriations,
certain gifts and grants, and investment income, are defined by GASB as nonoperating. Nonoperating expenses
include capital financing costs and other costs related to capital assets. The following summarizes the College’s
nonoperating revenues and expenses for the 2009-10 and 2008-09 fiscal years:
Nonoperating Revenues (Expenses): College
(In Thousands)
2009-10 2008-09
State Appropriations 45,640$ 50,446$
Gifts and Grants 56,078 30,398
Investment Income 117 309
Other Nonoperating Revenues 261 40
Interest on Capital Asset-Related Debt (108) (151)
Other Nonoperating Expenses (5) (150)
Net Nonoperating Revenues
101,983$ 80,892$


$7,808

$22,173
$6,607
$11,934
$4,897
$32,406
$73,783
$6,832
$16,687
$6,749
$10,334
$4,921
$18,239
$71,049
$0 $50,000 $100,000
Depreciation
Materials and Supplies
Other Services and Expenses
Contractual Services
Utilities and Communications
Scholarships and Waivers
Personnel Services
2008-09
2009-10
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Net nonoperating revenues increased by $21.1 million, primarily due to the following:
 Gifts and grants increased by $25.7 million, which primarily was the result of an increase in student financial
aid funds and receipt of $3.9 million in Federal American Recovery and Reinvestment Act (ARRA) funds.

 State appropriations decreased by $4.8 million from the 2008-09 fiscal year, due primarily to reduced College
Program Funds appropriated by the Legislature.
Other Revenues, Expenses, Gains, or Losses
This category is composed of capital appropriations and capital grants, contracts, gifts, and fees. The following
summarizes the College’s other revenues, expenses, gains, or losses for the 2009-10 and 2008-09 fiscal years:
Other Revenues, Expenses, Gains, or Losses: College
(In Thousands)
2009-10 2008-09
Capital Appropriations 2,887$ 12,958$
Capital Grants, Contracts, Gifts, and Fees 3,888 3,268
Total
6,775$ 16,226$

Capital appropriations decreased by $10.1 million, due to a decrease in Public Education Capital Outlay (PECO)
funding in the 2009-10 fiscal year as compared to the 2008-09 fiscal year.
T
HE STATEMENT OF CASH FLOWS
Another way to assess the financial health of an institution is to look at the statement of cash flows. Its primary
purpose is to provide relevant information about the cash receipts and cash payments of an entity during a period.
The statement of cash flows also helps users assess:
 An entity’s ability to generate future net cash flows.
 Its ability to meet its obligations as they come due.
 Its need for external financing.
A summary of the College’s cash flows for the 2009-10 and 2008-09 fiscal years is presented in the following table:
Condensed Statement of Cash Flows: College
(In Thousands)
2009-10 2008-09
Cash Provided (Used) by:
Operating Activities (104,893)$ (83,774)$
Noncapital Financing Activities 101,885 80,867

Capital and Related Financing Activities 4,278 6,143
Investing Activities 264 564
Net Increase in Cash and Cash Equivalents
1,534 3,800
Cash and Cash Equivalents, Beginning of Year 31,337 27,537
Cash and Cash Equivalents, End of Year
32,871$ 31,337$

Major sources of funds came from State appropriations ($45.6 million), net student tuition and fees ($33.3 million),
noncapital gifts and grants ($56.1 million), and capital appropriations ($24 million). Major uses of funds were for
payments to employees ($59.8 million), payments to suppliers ($40.6 million), payments for scholarships ($32.4
million), and purchase of capital assets ($23.1 million).
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Changes in cash and cash equivalents were the result of the following factors:
 The $21.1 million increase in cash outflows from operating activities is primarily due to an increase in
payments to suppliers, payments to employees, and payments for scholarships offset by an increase in tuition
and fees.
 The $21 million increase in cash inflows from noncapital financing activities is primarily due to an increase in
Federal Pell grant funds received and the receipt of $3.9 million of State appropriated ARRA funds in the
2009-10 fiscal year offset by a reduction in State appropriations.
 The $1.9 million decrease in cash inflows from capital and related financing activities is primarily due to an
increase in the purchase of capital assets offset by an increase in the receipt of PECO funds from the State.
CAPITAL ASSETS AND DEBT ADMINISTRATION
C
APITAL ASSETS
At June 30, 2010, the College had $273.1 million in capital assets, less accumulated depreciation of $86.7 million, for
net capital assets of $186.5 million. Depreciation charges for the current fiscal year totaled $7.8 million. The

following table summarizes the College’s capital assets at June 30:
Capital Assets, Net at June 30: College
(In Thousands)
Capital Assets 2010 2009
Land 27,571$ 26,278$
Buildings 213,545 193,598
Other Structures and Improvements 6,495 5,344
Furniture, Machinery, and Equipment 11,649 9,506
Leasehold Improvements 6,376 6,377
Construction in Progress 7,491 8,290
Total
273,127 249,393
Less, Accumulated Depreciation:
Buildings 71,060 64,968
Other Structures and Improvements 5,276 5,011
Furniture, Machinery, and Equipment 8,965 7,912
Leasehold Improvements 1,361 1,209
Total Accumulated Depreciation
86,662 79,100
Capital Assets, Net
186,465$ 170,293$

The College has $6.8 million in construction commitments at June 30, 2010. The construction commitments are for
projects that include Brandon Campus remodeling and renovations, Ybor City auto mechanic facility renovation, and
Dale Mabry Campus bookstore renovations. In addition, planning is underway for renovation of the Collaboration
Studio building which was purchased in the 2009-10 fiscal year. State appropriations together with local funds are
expected to finance the construction, renovation, and purchase of land and facilities. More information about the
College’s capital assets is presented in the notes to financial statements.
D
EBT ADMINISTRATION

At fiscal year-end, the College had $2.6 million in long-term debt outstanding versus $3 million at the end of the prior
fiscal year, a decrease of 13.3 percent.
The State Board of Education issues capital outlay bonds on behalf of the College. During the 2009-10 fiscal year, the
State Board of Education issued $52.9 million of State Board of Education Capital Outlay Bonds, Series 2009A.
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Proceeds from the College’s portion of the bonds, $2,825,000, were used to refund certain callable portions of the
State Board of Education Capital Outlay Bonds, Series 1999A. Additional information about the College’s long-term
debt is presented in the notes to financial statements.
At June 30, 2010, the Hillsborough Community College Foundation, Inc., had $18 million in Student Housing
Revenue bonds outstanding. The bonds were issued in December 2006 to fund construction of a 420-bed student
housing facility.
ECONOMIC FACTORS THAT WILL AFFECT THE FUTURE
Hillsborough Community College’s economic condition is closely tied to that of the State of Florida. Because of
limited economic growth and increased demand for State resources, only a modest increase in State funding is
anticipated in the coming year. In response, the Board of Trustees increased the tuition rate 8 percent to take effect
beginning with the Fall 2010 term. The College received $3.9 million of nonrecurring funds from State appropriated
ARRA to offset the $4.8 million decrease in State appropriations for the 2009-10 fiscal year. The College anticipates
receiving $4 million additional ARRA funding in the 2010-11 fiscal year. ARRA funding is not anticipated after the
2010-11 fiscal year. The College’s current financial and capital plans indicate that the infusion of additional financial
resources from an increase in tuition rates will be necessary to maintain its present level of services.
REQUESTS FOR INFORMATION
Questions concerning information provided in the MD&A, financial statements and notes thereto, or other required
supplementary information, or requests for additional financial information should be addressed to Barbara A.
Larson, Vice President for Administration/Chief Financial Officer, Hillsborough Community College, 39 Columbia
Drive, Tampa, Florida 33606.

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MARCH 2011 REPORT NO. 2011-164
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BASIC FINANCIAL STATEMENTS
College Component
Unit
ASSETS
Current Assets:
Cash and Cash Equivalents 19,028,781$ 759,977$
Restricted Cash and Cash Equivalents 5,018,175
Accounts Receivable, Net 5,090,270 184,791
Due from Other Governmental Agencies 21,168,395
Due from Component Unit/College 106,013 51,931
Inventories 1,569,374
Prepaid Expenses 83,720 7,983
Total Current Assets
52,064,728 1,004,682
Noncurrent Assets:
Restricted Cash and Cash Equivalents 8,824,105 1,086,775
Investments 5,179,034
Restricted Investments 207,866
Depreciable Capital Assets, Net 151,403,752 15,892,931
Nondepreciable Capital Assets 35,061,570
Other Assets 280,203
Total Noncurrent Assets
195,497,293 22,438,943
TOTAL ASSETS
247,562,021$ 23,443,625$
LIABILITIES

Current Liabilities:
Accounts Payable 1,619,720$ 125,953$
Salary and Payroll Taxes Payable 3,595,529
Retainage Payable 1,336,044
Due to Component Unit/College 51,931 106,013
Deferred Revenue 367,070 49,219
Deposits Held for Others 464,806
Long-Term Liabilities - Current Portion:
Bonds Payable 235,000 325,000
Notes Payable 542,834
Compensated Absences Payable 500,000
Total Current Liabilities
8,170,100 1,149,019
Noncurrent Liabilities:
Bonds Payable 2,330,000 17,675,000
Notes Payable 1,065,938
Compensated Absences Payable 2,942,130
Other Postemployment Benefits Payable 546,209
Total Noncurrent Liabilities
5,818,339 18,740,938
TOTAL LIABILITIES
13,988,439 19,889,957
HILLSBOROUGH COMMUNITY COLLEGE
A COMPONENT UNIT OF THE STATE OF FLORID
A
STATEMENT OF NET ASSETS
June 30, 2010

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MARCH 2011 REPORT NO. 2011-164
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College Component
Unit
NET ASSETS
Invested in Capital Assets, Net of Related Debt 183,900,321$ (3,715,841)$
Restricted:
Nonexpendable:
Endowment 1,650,747
Expendable:
Grants and Loans 3,907,939 1,901,788
Scholarships 868,785 2,244,424
Capital Projects 28,482,784
Debt Service 6,689
Unrestricted 16,407,064 1,472,550
Total Net Assets
233,573,582 3,553,668
TOTAL LIABILITIES AND NET ASSETS
247,562,021$ 23,443,625$
HILLSBOROUGH COMMUNITY COLLEG
E
A COMPONENT UNIT OF THE STATE OF FLORID
A
STATEMENT OF NET ASSETS (Continued)
June 30, 2010
The accompanying notes to financial statements are an integral part of this statement.

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MARCH 2011 REPORT NO. 2011-164

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College Component
Unit
REVENUES
Operating Revenues:
Student Tuition and Fees, Net of Scholarship
Allowances of $20,845,585 34,681,106$ $
Federal Grants and Contracts 3,699,777
State and Local Grants and Contracts 265,190
Nongovernmental Grants and Contracts 394,412 892,309
Sales and Services of Educational Departments 433,790
Auxiliary Enterprises, Net of Scholarship Allowances
of $1,288,848 7,485,723
Other Operating Revenues 1,482,912 2,972,969
Total Operating Revenues
48,442,910 3,865,278
EXPENSES
Operating Expenses:
Personnel Services 73,783,088
Scholarships and Waivers 32,405,500 1,766,090
Utilities and Communications 4,897,112
Contractual Services 11,934,012
Other Services and Expenses 6,607,111 2,642,692
Materials and Supplies 22,173,054
Depreciation 7,808,320 852,291
Total Operating Expenses
159,608,197 5,261,073
Operating Loss
(111,165,287) (1,395,795)
NONOPERATING REVENUES (EXPENSES)

State Appropriations 45,640,478 93,799
Gifts and Grants 56,078,530 646,387
Investment Income 116,656 97,894
Unrealized Gain on Investments 89,739
Other Nonoperating Revenues 171,000 334,486
Interest on Capital Asset-Related Debt (107,652)
Other Nonoperating Expenses (5,584) (163,544)
Net Nonoperating Revenues
101,983,167 1,009,022
Loss Before Other Revenues,
Expenses, Gains, or Losses
(9,182,120) (386,773)
Capital Appropriations 2,886,661
Capital Grants, Contracts, Gifts, and Fees 3,887,744
Total Other Revenues
6,774,405
Decrease in Net Assets
(2,407,715) (386,773)
Net Assets, Beginning of Year 235,981,297 3,940,441
Net Assets, End of Year
233,573,582$ 3,553,668$
The accompanying notes to financial statements are an integral part of this statement.
HILLSBOROUGH COMMUNITY COLLEGE
A COMPONENT UNIT OF THE STATE OF FLORID
A
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 2010

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MARCH 2011 REPORT NO. 2011-164
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College
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and Fees, Net 33,282,608$
Grants and Contracts 3,905,438
Payments to Suppliers (40,630,732)
Payments for Utilities and Communications (4,897,112)
Payments to Employees (59,764,430)
Payments for Employee Benefits (13,812,993)
Payments for Scholarships (32,405,500)
Auxiliary Enterprises, Net 7,875,374
Sales and Service of Educational Departments 433,790
Other Receipts 1,120,602
Net Cash Used by Operating Activities
(104,892,955)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State Appropriations 45,640,478
Gifts and Grants Received for Other Than Capital or Endowment Purposes 56,078,530
Other Nonoperating Receipts 165,416
Net Cash Provided by Noncapital Financing Activities
101,884,424
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from Capital Debt 2,825,000
Capital Appropriations 24,048,381
Capital Grants and Gifts 3,887,744
Purchases of Capital Assets (23,130,206)
Principal Paid on Capital Debt (3,245,000)
Interest Paid on Capital Debt (107,652)
Net Cash Provided by Capital and Related Financing Activities

4,278,267
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales and Maturities of Investments 147,175
Investment Income 116,656
Net Cash Provided by Investing Activities
263,831
Net Increase in Cash and Cash Equivalents
1,533,567
Cash and Cash Equivalents, Beginning of Year 31,337,494
Cash and Cash Equivalents, End of Year
32,871,061$
HILLSBOROUGH COMMUNITY COLLEGE
A COMPONENT UNIT OF THE STATE OF FLORID
A
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2010

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College
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED BY OPERATING ACTIVITIES
Operating Loss (111,165,287)$
Adjustments to Reconcile Operating Loss
to Net Cash Used by Operating Activities:
Depreciation Expense 7,808,320
Changes in Assets and Liabilities:
Receivables, Net (2,042,665)

Due from Component Unit 106,013
Inventories 8,778
Prepaid Expenses (232)
Accounts Payable 74,667
Salary and Payroll Taxes Payable 539,880
Due to Component Unit (348,054)
Deferred Revenue 367,070
Deposits Held for Others 91,988
Compensated Absences Payable (499,750)
Other Postemployment Benefits Payable 166,317
NET CASH USED BY OPERATING ACTIVITIES
(104,892,955)$
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
89,739$
HILLSBOROUGH COMMUNITY COLLEGE
A COMPONENT UNIT OF THE STATE OF FLORIDA
STATEMENT OF CASH FLOWS (Continued)
For the Fiscal Year Ended June 30, 2010
The accompanying notes to financial statements are an integral part of this statement.
Unrealized gains were recognized as increases in investment income on the
statement of revenues, expenses, and changes in net assets, but are not cash
transactions for the statement of cash flows.



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MARCH 2011 REPORT NO. 2011-164
HILLSBOROUGH COMMUNITY COLLEGE
A COMPONENT UNIT OF THE STATE OF FLORIDA

NOTES TO FINANCIAL STATEMENTS
J
UNE 30, 2010


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
. The governing body of Hillsborough Community College, a component unit of the
State of Florida, is the District Board of Trustees. The Board constitutes a corporation and is composed of
five members appointed by the Governor and confirmed by the Senate. The District Board of Trustees is
under the general direction and control of the Florida Department of Education, Division of Florida
Colleges, and is governed by law and State Board of Education rules. However, the District Board of
Trustees is directly responsible for the day-to-day operations and control of the College within the
framework of applicable State laws and State Board of Education rules. Geographic boundaries of the
District correspond with those of Hillsborough County.
Criteria for defining the reporting entity are identified and described in the Governmental Accounting
Standards Board’s Codification of Governmental Accounting and Financial Reporting Standards, Sections 2100 and
2600. These criteria were used to evaluate potential component units for which the District Board of
Trustees is financially accountable and other organizations for which the nature and significance of their
relationship with the District Board of Trustees are such that exclusion would cause the College’s financial
statements to be misleading or incomplete. Based upon the application of these criteria, the College is a
component unit of the State of Florida, and its financial balances and activity are reported in the State’s
Comprehensive Annual Financial Report by discrete presentation.
Discretely Presented Component Unit
. Based on the application of the criteria for determining
component units, the Hillsborough Community College Foundation, Inc. (Foundation), is included within
the College’s reporting entity as a discretely presented component unit. This organization provides funding
and services to support and foster the pursuit of higher education at the College.
The Foundation is audited by other auditors pursuant to Section 1004.70(6), Florida Statutes. The

Foundation’s audited financial statements are available to the public at the College. The financial data
reported on the accompanying financial statements was derived from the Foundation’s audited financial
statements for the fiscal year ended June 30, 2010.
The Foundation is also a direct-support organization, as defined in Section 1004.70, Florida Statutes, and
although legally separate from the College, is financially accountable to the College. The Foundation is
managed independently, outside the College’s budgeting process, and its powers generally are vested in a
governing board pursuant to various State statutes. The Foundation receives, holds, invests, and administers
property, and makes expenditures to or for the benefit of the College.
Basis of Presentation
. The College’s accounting policies conform with accounting principles generally
accepted in the United States of America applicable to public colleges and universities as prescribed by the
Governmental Accounting Standards Board (GASB). The National Association of College and University
Business Officers (NACUBO) also provides the College with recommendations prescribed in accordance
with generally accepted accounting principles promulgated by GASB and the Financial Accounting
Standards Board (FASB). GASB allows public colleges various reporting options. The College has elected
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