TEXAS TECH UNIVERSITY ANNUAL FINANCIAL REPORT FISCAL YEAR 2004

TEXAS TECH UNIVERSITY

ANNUAL FINANCIAL REPORT
FISCAL YEAR 2004

Texas Tech University

79 years of growth,
progress, educational
excellence, and service
to the State of Texas.

1925-2004

ANNUAL FINANCIAL REPORT
OF

TEXAS TECH UNIVERSITY

FOR THE YEAR ENDED AUGUST 31, 2004

LUBBOCK, TEXAS

Table of Contents

Letters of Transmittal .....................................................................................................................…. 1
Organizational Data ........................................................................................................................... 3
Enrollment Data ................................................................................................................................. 4

Financial Statements:
Statement of Net Assets................................................................................................................ 6

Statement of Revenues, Expenses and Changes in Net Assets ................................................. 8
Matrix of Operating Expenses by Natural Classification……………………………………………... 9
Statement of Cash Flows .............................................................................................................. 10

Policies and Notes:
Notes to the Financial Statements ............................................................................................... . 12

Schedules:
Schedule 1A Schedule of Expenditures of Federal Awards ...................................................... 28
Schedule 1B Schedule of State Grant Pass-Throughs from/to State Agencies......................... 30
Schedule 3 Reconciliation of Cash in State Treasury .............................................................. 31



Texas Tech University

Board of Regents
Carin Barth ................................ Term Expires January 31, 2005 ......................Houston
C. Robert Black.......................... Term Expires January 31, 2007 ...........Horseshoe Bay
E. R. Brooks .............................. Term Expires January 31, 2005 ......................... Dallas
F. Scott Dueser…………………..Term Expires February 1, 2009........................Abilene
L. Frederick Francis……………..Term Expires January 31, 2007…………….....El Paso
J. Frank Miller, III…………………Term Expires January 31, 2009…………………Dallas
Brian C. Newby.......................... Term Expires January 31, 2005 ..................Fort Worth
Windy Sitton………………………Term Expires February 1, 2009……………….Lubbock
Bob Stafford……………………….Term Expires February 1, 2007……………….Lubbock

Officers of the Board
C. Robert Black........................................................................................................Chair
Brian C. Newby................................................................................................Vice Chair

Ben Lock...........................................................................................................Secretary

Fiscal Officers
Jon Whitmore ................................................................................................... President
Thomas Anderes….………………Senior Vice President for Administration and Finance
Nancy H. Whittaker....................... AVP for Finance and Administration and Comptroller
Rebecca S. Hyde..........................Director of Student and University Financial Services
Sharon S. Williamson ............................ Director of Financial Accounting and Reporting

3

Texas Tech University
Enrollment Data

For The Year Ended August 31, 2004

Number of Students by Semester

Summer Term 2004

Type of Student Fall 2003 Spring 2004 First Second
Texas Resident 25,834 23,397
Blind/Deaf 6 5 8,527 7,693
Competitive Scholarship 41 33
Dependents 4 3 3 0
Faculty/Staff 24 23
Foreign 877 1,340 15 14
Good Neighbor 0 0
Hazelwood 14 13 0 0
Independent Study 11 11

Military 3 3 10 11
Nursing 26 20
Out-of-State 1,560 1,414 700 355
Teaching/Research Assistant 125 102
Valedictorian 11 11 0 0
Other 13 9
Totals 28,549 26,384 10 7

Term 6 3

Fall 2003 2 2
Fall 2002
Fall 2001 1 1
Fall 2000
Fall 1999 521 497
Fall 1998
Fall 1997 45 55
Fall 1996
Fall 1995 5 5
Fall 1994
Fall 1993 4 4
Fall 1992
Fall 1991 9,849 8,647

Enrollment Trend Data (Fall Semester)

Students Semester Hours

28,549 359,863
27,569 343,394

25,573 321,249
24,558 310,112
24,249 305,212
24,158 305,338
25,022 314,142
24,717 310,783
24,185 302,955
24,083 297,569
24,007 294,897
24,215 299,015
24,707 304,446

` 4

FINANCIAL STATEMENTS

Texas Tech University
Statement of Net Assets (Unaudited)

August 31, 2004

ASSETS

Current Assets:

Cash and Cash Equivalents (Note 1) $ 90,588,318

Restricted: 19,187,296
22,262,440
Cash and Cash Equivalents (Note 1)

5,981,183
Legislative Appropriations 666,988
433,833
Accounts Receivable, net:
8,843,425
Federal Receivables 4,491,250

Interest and Dividends 388,906
479,985
Student Receivables 10,996,796
832,190
Gift Receivables 1,989,318
6,612,432
Accounts Receivable
52,125
Other Receivables 173,806,485

Due From Other Agencies (Note 8) 30,297,529
121,221,980
Prepaid Expenses
34,263,336
Consumable Inventories 2,012,960

Merchandise Inventories 126,450,951

Loans and Notes Receivable, net 194,915,774
803,551,685
Other Current Assets (424,183,971)
888,530,244
Total Current Assets

1,062,336,729
Non-Current Assets:
Restricted: 20,260,203
Cash and Cash Equivalents (Note 1) 15,813,940
Investments 21,247,743
Gift Receivables
Loans and Notes Receivable, net 8,137
Investments 70,599,952
Capital Assets (Note 2)
Non-Depreciable 224,469
Depreciable 1,962,892
Accumulated Depreciation 14,911,000
Total Non-Current Assets 12,803,151
9,414,672
Total Assets $
581,056
LIABILITIES 167,827,215

Current Liabilities:

Accounts Payable $

Payroll Payable

Liabilities Payable from Restricted Assets

Accrued Liabilities (Note 5)

Deferred Revenues

Due to Other Agencies (Note 8)

Employees' Compensable Leave (Note 5)

Notes and Loans Payable (Note 5)

Bonds Payable (Note 5)

Funds Held for Others

Other Current Liabilities

Total Current Liabilities

6

Texas Tech University
Statement of Net Assets (Unaudited)

August 31, 2004

Non-Current Liabilities: 1,873,247
Interfund Payable (Note 8) 5,888,675
Employees' Compensable Leave (Note 5) 259,532,137
Bonds Payable (Note 5) 267,294,059
Total Non-Current Liabilities
435,121,274
Total Liabilities $
305,681,219
NET ASSETS

Invested in Capital Assets, Net of Related Debt 71,132,761
Restricted:
Nonexpendable: 16,495,110
Endowments 13,666,955
Expendable:
Capital Projects 5,066,528
Higher Education Assistance Fund 51,940,098
Debt Service 163,232,784
Other 627,215,455
Unrestricted (Note 1)
1,062,336,729
Total Net Assets

Total Liabilities and Net Assets $

See Accompanying Notes To Financial Statements

7

Texas Tech University $ 23,128,295
Statement of Revenues, Expenses, and Changes in Net Assets (Unaudited) 137,657,269
(8,590,666)
For the Year Ended August 31, 2004 66,118,892
3,597,671
Operating Revenues 5,752,230
Tuition and Fees 39,734,708
Tuition and Fees - Pledged 1,671,583
Less Discounts and Allowances 2,468,809
Sales and Services of Auxiliary Enterprises - Pledged 7,670,337
Other Sales and Services 1,183,968

Other Sales and Services - Pledged 8,742,069
Federal Grants and Contracts (Schedule 1A) 289,135,165
Federal Grant Pass-Throughs (Schedule 1A)
State Grants and Contracts 143,345,333
State Grant Pass-Throughs (Schedule 1B) 37,655,977
Local Governmental Grants and Contracts 8,557,602
Nongovernmental Grants and Contracts 40,928,342
Total Operating Revenues 22,021,274
24,766,918
Operating Expenses 32,033,850
Instruction 25,566,751
Research 69,813,919
Public Service 21,136,184
Academic Support
Student Services 425,826,150
Institutional Support
Operations and Maintenance of Plant (136,690,985)
Scholarships and Fellowships
Auxiliary Enterprises 135,793,557
Depreciation and Amortization 8,117,149
Total Operating Expenses 5,030,434

Operating Income (Loss) 11,405,542
10,455,285
Nonoperating Revenues (Expenses) (13,107,092)
Legislative Revenue (2,446,334)
Private Gifts
Private Gifts - Pledged 137,356
Investment Income 12,367,860
Investment Income - Pledged 167,753,757

Interest Expense on Capital Asset Financing
Loss on Sale and Disposal of Capital Assets 31,062,772
Net Increase in Fair Value of Investments
Other Nonoperating Revenues (Expenses) 20,961,881
Total Nonoperating Revenues (Expenses) (653,379)
306,638
Income (Loss) before Other Revenues, Expenses, Gains, Losses, and Transfers
(1,302,623)
Other Revenues, Expenses, Gains, Losses, and Transfers (7,304,432)
Capital Appropriations (HEAF)
Lapsed Appropriations (233,148)
Additions to Permanent Endowments 11,774,937
Transfers Out to TTU Health Sciences Center
Transfers Out to TTU System Administration $ 42,837,709
Transfers Out to Other State Agencies (Note 8)
Net Other Revenues, Expenses, Gains, Losses, and Transfers 725,449,734

TOTAL CHANGES IN NET ASSETS (141,071,988)

Beginning Net Assets (September 1, 2003) $ 627,215,455

Restatements of Beginning Net Assets (Note 18)

Ending Net Assets (August 31, 2004)

See Accompanying Notes to Financial Statements

8

UNAUDITED

Texas Tech University
Matrix of Operating Expenses by Natural Classification
For the Year Ended August 31, 2004

Salaries Payroll Professional Fees Materials
and Wages and Supplies
Function Related Costs and Services Travel

Instruction $ 101,866,254 $ 23,844,935 $ 526,355 $ 1,246,690 $ 4,628,097
Research 296,590 1,413,106 4,781,244
Public Service 22,437,232 4,091,489 229,080
Academic Support 3,477,681 272,276 784,617
Student Services 4,020,675 932,473 214,364 868,450 4,285,952
Institutional Support 1,516,613 472,418 1,318,754
Operation and Maintenance of Plant 20,974,093 4,937,754 167,946
Scholarships and Fellowships 78,788 728,370
Auxiliary Enterprises 8,956,863 2,175,474 25,268 3,478,614
Depreciation and Amortization 476,429
9,578,622 7,873,431
Total Operating Expenses
6,076,569 1,434,803
Function
190,685 8,092
Instruction
Research 22,719,373 5,587,679 607,693 4,533,870
Public Service
Academic Support $ 196,820,366 $ 50,886,130 $ 6,815,900 $ 5,073,847 $ 24,539,518
Student Services
Institutional Support Communications Repairs and Rentals and Printing and Depreciation

Operation and Maintenance of Plant and Utilities Maintenance Leases Reproduction and Amortization
Scholarships and Fellowships
Auxiliary Enterprises $ 271,125 $ 721,276 $ 1,909,914 $ 724,942 $
Depreciation and Amortization 383,158 200,978
50,225 372,413 396,780 139,506
Total Operating Expenses 413,916
77,871 152,788 2,167,037 821,157
Function 477,632 301,857
387,192 610,314 462,031
Instruction 112,243 19,405
Research 149,072 318,512
Public Service 3,004,202 699,433
Academic Support 44,291 114,468
Student Services
Institutional Support 12,196,097 7,306,056
Operation and Maintenance of Plant
Scholarships and Fellowships 6,910,027 2,243,245
Auxiliary Enterprises
Depreciation and Amortization 21,136,184

Total Operating Expenses $ 20,085,900 $ 11,839,072 $ 8,912,997 $ 3,321,194 $ 21,136,184

Scholarships State Pass Other Grand Total
Throughs Operating

$ 3,960,384 $ 3,645,361 $ 143,345,333
2,526,314 37,655,977
1,024,309 78,919 1,500,410 8,557,602
2,269,095 40,928,342
51,126 6,926,735 22,021,274

3,179,813 24,766,918
536,858 1,302,972 32,033,850
25,566,751
190,293 1,040 69,813,919
19,684,353 21,136,184
799,476

3,035

25,366,934

3,347,615

$ 35,280,030 $ 78,919 41,036,093 $ 425,826,150

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Texas Tech University $ 156,992,195
Statement of Cash Flows (Unaudited) 69,680,506
For the Year Ended August 31, 2004 68,008,206
9,149,199
Cash Flows from Operating Activities (37,802,549)
Tuition and Fees
Grants and Contracts (194,835,180)
Sales and Services of Auxiliary Enterprises (172,118,622)
Other Sales and Services (100,926,245)
Payments to Suppliers
Payments to Employees 143,676,596
Payments for Other Operating Activities 14,647,658
Net Cash Used By Operating Activities (4,359,287)

(233,148)
Cash Flows from Noncapital Financing Activities 967,752
State Appropriations 7,340,822
Noncapital Gifts and Grants
Payments to Other Components 162,040,393
Transfers Out to Other State Agencies
Proceeds from Agency Transactions 39,448,235
Other Noncapital Financing Activities 20,961,881
Net Cash Provided by Noncapital Financing Activities (70,125,828)
(29,158,900)
Cash Flows from Capital and Related Financing Activities (13,136,431)
Proceeds from Capital Debt Issuance (52,011,043)
Capital Appropriations
Purchases of Capital Assets 81,275,214
Principal Paid on Capital Debt 22,174,793
Interest Paid on Capital Debt (70,086,905)
Net Cash Used by Capital and Related Financing Activities 33,363,102

Cash Flows from Investing Activities $ 42,466,207
Proceeds from Investment Sales and Maturities
Interest and Dividends Received 104,186,633
Purchases of Investments (6,579,697)
Net Cash Provided by Investing Activities
97,606,936
TOTAL NET CASH FLOWS
$ 140,073,143
Cash & Cash Equivalents - September 1, 2003
Restatement to Beginning Cash & Cash Equivalents (Note 18) (136,690,985)
Cash & Cash Equivalents
21,136,184

September 1, 2003 Restated 2,827,372
790,042
Ending Cash & Cash Equivalents - August 31, 2004 377,350
1,764,589
Reconciliation of Operating Loss to Net Cash Flows from Operating Activities (41,300)
Operating Loss (4,737,923)
Adjustments: 1,985,188
Depreciation Expense (244,704)
(Increase) Decrease in Accounts Receivables
(Increase) Decrease in Loans and Notes Receivable 11,643,100
(Increase) Decrease in Inventory 353,795
(Increase) Decrease in Prepaid Expenses (88,953)
(Increase) Decrease in Other Assets
Increase (Decrease) in Accounts Payables (100,926,245)
Increase (Decrease) in Payroll Payables
Increase (Decrease) in Accrued Liabilities
Increase (Decrease) in Deferred Revenue
Increase (Decrease) in Compensable Leave
Increase (Decrease) in Other Liabilities
Net Cash Used for Operating Activities

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POLICIES AND NOTES

UNAUDITED

TEXAS TECH UNIVERSITY

Notes to the Financial Statements

Note 1: Summary of Significant Accounting Policies

Reporting Entity

Texas Tech University is an agency of the State of Texas and its financial records comply with state
statutes and regulations. This includes compliance with the Texas Comptroller of Public Accounts’ Annual
Financial Reporting Requirements for State Agencies.

Texas Tech University is one of the three components of the Texas Tech University System. The other two
components, reported separately, are Texas Tech University Health Sciences Center and the Texas Tech
University System Administration. Texas Tech University includes within this report all components as
determined by an analysis of their relationship to Texas Tech University as listed below.

Blended Component Units
Texas Tech Foundation, Inc. is a component unit of the consolidated Texas Tech University System since it
serves the fundraising needs of Texas Tech University, Texas Tech University Health Sciences Center and
Texas Tech University System Administration. No balances or activities associated with Texas Tech
Foundation, Inc. are included in this Annual Financial Report.

Due to the significant changes related to Governmental Accounting Standards Board Statement No. 34,
Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local
Governments, the Comptroller of Public Accounts does not require the accompanying annual financial
statements to be in compliance with generally accepted accounting principles (GAAP). The financial report
will be considered for audit by the State Auditor as part of the audit of the State of Texas Comprehensive
Annual Financial Report; therefore, an opinion has not been expressed on the financial statements and
related information contained in this report.

Basis of Accounting

The accounting records of Texas Tech University are maintained using a modified accrual basis of
accounting. Accounting data for most external reports, including this Annual Financial Report, are
converted to full accrual basis of accounting in compliance with GASB Statements 34 and 35. For financial
reporting purposes, Texas Tech University is considered a special-purpose government engaged only in
business-type activities. Accordingly, the University’s financial statements are presented using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis,
revenues are recognized when earned, and expenses are recorded when an obligation has been incurred.

Cash and Cash Equivalents

For the purpose of financial statement reporting, cash equivalents are short-term highly liquid investments
with an original maturity of three months or less. Included in this category are demand deposits in banks,
local funds held by the state, state reimbursements in transit, repurchase agreements and Texpool
investments.

The University records and reports its deposits in the general deposit account at cost. It records and reports
its special deposit accounts at fair value. Investment pool cash equivalents are recorded at fair value.

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UNAUDITED

Texas Tech University – Notes to the Financial Statements (continued)

Cash and Cash Equivalents as reported on the Statement of Net Assets

Cash on Hand Current Current Non-Current Total
Cash in Bank Unrestricted Restricted Restricted $ 64,018
Cash in State Treasury
Repurchase Agreements $ 63,673 $ 345 (292,283) (3,848,429)

Texpool & TexSTAR Investments (2,761,398) (794,748) 20,406,139
20,406,139 1,679,656 22,965,656
Total Cash and Cash Equivalents 16,722,070 4,563,930 28,910,156 100,485,759
56,157,834 15,417,769
$ 30,297,529 $ 140,073,143
$ 90,588,318 $ 19,187,296

Investments

Texas Tech University accounts for its investments at fair market value, as determined by quoted market
prices, in accordance with GASB Statement No. 31 – Accounting and Financial Reporting for Certain
Investments and for External Investment Pools. Changes in unrealized gain (loss) on the carrying value of
the investments are reported as a component of investment income in the Statement of Revenues,
Expenses, and Changes in Net Assets.

Restricted Assets

Restricted assets include monies or other resources restricted by legal or contractual requirements. These
assets include proceeds of revenue bonds and revenues set aside for statutory or contractual requirements.

Inventories

Inventories include both merchandise inventories on hand for sale and consumable inventories such as
maintenance supplies, housing supplies, janitorial supplies, office supplies, and telecommunications
supplies. Inventories are valued at cost, generally utilizing the last-in, first-out method.

Receivables

Accounts receivable consist of tuition and fees charges to students and auxiliary enterprise services
provided to students, faculty, and staff. Accounts receivable are recorded net of estimated uncollectible

amounts.

Federal receivable includes amounts due from the federal, state, and local governments or private sources,
in connection with reimbursement of allowable expenditures disbursed by the University’s grants and
contracts department.

Gift receivables are accounted for at their estimated net realizable value. The estimated net realizable value
consists of the present value of long-term pledges and a reduction for any allowance for uncollectible
pledges. Pledges vary from one to ten years and are used to support specifically identified University
programs and initiatives.

Interest and income receivable consists of amounts due from investment holdings, cash management
pools, and cash invested in various short-term investment items.

Other receivables include year-end revenue accruals not included in any other receivable category.

Prepaid Expenses

Disbursements for insurances, subscriptions, prepaid postage, prepaid travel costs and similar services
paid in the current or prior fiscal years and benefiting more than one accounting period are allocated among
accounting periods.

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UNAUDITED

Texas Tech University – Notes to the Financial Statements (continued)

Loans and Notes Receivable

These receivables are student loans receivable that consist of amounts due from the Federal Perkins Loan
Program, and from other loans administered by the University.

Capital Assets

Furniture, equipment, and vehicles with a cost of more than $5,000 and an estimated useful life in excess of
one year are capitalized. Capitalization thresholds for buildings, building improvements, facilities and other
improvements are $100,000. The capitalization threshold for infrastructure is $500,000. These assets are
capitalized at cost. Donated assets are reported at fair market value as of the acquisition date. Routine
repairs and maintenance and capital assets acquired for less than the threshold amounts are charges to
operating expenses in the year in which the expense was incurred. Depreciation is based on allocation
methods and estimated lives prescribed by the Statewide Property Accounting System (SPA). Assets are
depreciated over the estimated useful life of the asset using the straight-line method.

Accounts Payable and Accrued Liabilities

Accounts Payable represents the liability for the value of assets or services received at the balance sheet
date for which payment is pending.

Deferred Revenues

Deferred Revenues include amounts received for tuition and fees and certain auxiliary activities prior to the
end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include
amounts received from grant and contract sponsors that have not yet been earned.

Employees’ Compensable Leave Balances

Employees’ Compensable Leave payable balances represent the liability that becomes “due” upon the
occurrence of relevant events such as resignations, retirements, and uses of leave balances by covered
employees. Liabilities are reported separately as either current or noncurrent in the statement of net

assets.

Notes and Loans Payable

Notes payable represents amounts owed for commercial paper that was issued during the current
accounting period. Notes and loans payable are further explained in Note 5.

Bonds Payable

Texas Tech University has a number of bond issues outstanding, most of which are supported either
directly or indirectly by tuition revenue. Bonds payable are addressed in more detail in Note 13.

Funds Held for Others

Current balances in funds held for others result from the University acting as an agent or fiduciary for
students and student organizations.

Interfund Payable

Interfund payables are resources payable to other state agencies for Lone Star that assisted the University
with utility costs. This payable is further explained in Note 8.

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UNAUDITED

Texas Tech University – Notes to the Financial Statements (continued)

Net Assets

Net Assets are the difference between fund assets and liabilities. They are presented in three separate
classes: Invested in Capital Assets – Net of Related Debt, Restricted and Unrestricted.

Invested in Capital Assets, Net of Related Debt
Capital assets, net of accumulated depreciation and outstanding principal balances of debt attributable to
the acquisition, construction or improvement of those assets.

Restricted Net Assets
Restricted net assets result when constraints placed on net asset use are either externally imposed by a
party external to the University such as creditors, grantors, contributors, and the like, or imposed by law
through constitutional provisions or enabling legislation.

Unrestricted Net Assets
Unrestricted net assets consist of net assets, which do not meet the definition of restricted net assets.
Unrestricted net assets often have constraints on resources, which are imposed by management, but can
be moved or modified.

Unrestricted Net Assets as reported on the Statement of Net Assets

Reserved for: $ 4,036,243
Encumbrances 3,355,701
Accounts Receivable 1,752,662
Inventory 2,047,795
Prepaid Expenses 213,249
Imprest Funds
Future Operating Budgets 87,353,195
Service Department Operating Funds 18,227,093
Student Service Fees
Funds Functioning as Endowments 2,173,126
43,593,114

Unreserved
480,606

Total Unrestricted Net Assets $ 163,232,784

Interfund Activity and Transactions

Texas Tech University is regularly involved in both interfund activity and interfund transactions. Interfund
activity is defined as financial interaction between internal funds, including blended component units.
Interfund transactions are defined as financial transactions between legally separate entities. Interfund
activity and interfund transactions are both clearly identifiable and are eliminated where appropriate.

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UNAUDITED

Texas Tech University – Notes to the Financial Statements (continued)

Note 2: Capital Assets

Depreciation of capital assets is recorded as a periodic expense and accumulated as an offset to the asset
book values. Depreciation of capital assets is based on allocation methods and estimated lives prescribed
by the Statewide Property Accounting (SPA) system.

Accumulated depreciation is classified by capital asset category, providing for an estimation of the net book
value of each asset category.

Capital assets are categorized as either (1) Land and Land Improvements, (2) Buildings and Building
Improvements, (3) Infrastructure, (4) Furniture and Equipment, (5) Vehicles, Boats and Aircraft, (6)
Construction in Progress, (7) Other Capital Assets, or (8) Facilities and Other Improvements. The changes

to fixed asset balances are summarized below.

Business-type Activities: Balance Adjustments Completed Increase Decrease Additions Deletions Balance
Non-depreciable Assets: 09/01/03 CIP Int’agy Int’agy 08/31/04
Trans Trans

Land and Land Improvements $ 1,926,393 (1,105,554) (52,441,903) 36,937,289 $1,926,393
Construction In Progress 96,814,570 30,773,420 (52,441,903) 7,271,185 80,204,402
Other Capital Assets 74,740,374 112,784,979
29,667,866 44,208,474
Total Non-depreciable Assets 173,481,337 194,915,774

Depreciable Assets:

Buildings and Building Improvements 485,350,875 (3,048,373) 52,441,903 19,327,444 554,071,849
Infrastructure 23,461,725 24,878,330
(1,215,311) 107,873 (28,458) 1,416,605 (2,079,345)
Facilities and Other Improvements 118,032,660 (21,387) 113,343 (19,999) 4,132,333 (421,047) 120,949,682
Furniture and Equipment 90,446,134 (48,297) 94,886,980
8,123,936 6,462,163 (2,500,392) 8,376,370
Vehicles, Boats and Aircraft (34,161,263) 628,434 388,474
34,549,737 1,633,693
Other Capital Assets (38,494,631) 52,441,903 221,216 (48,457) 31,966,979 421,047 803,551,685
Total depreciable assets at 759,965,067
2,054,740 (339,777,087)
historical costs (331,966,869) 136,057 52,441,903 (500) 9,486 (7,946,275) (445,652) (2,555,131)
(1,652,610) $0 (18,358) 16,332 (902,521) $(445,652)
Less Accumulated Depreciation for: (8,809,364) (150,265) (13,828,471)
(18,858) 25,818 (4,868,842) (61,851,948)
Buildings and Improvements (54,702,779) 1,350 202,358 (22,639) (8,791,848)

Infrastructure (5,588,527) 6,991,964 $202,358 $(22,639) (5,870,116)
(7,305,394) 6,979,106 (701,960) (301,218)
Facilities and Other Improvements (31,515,525) 12,212
Furniture and Equipment (410,025,543) $(1,847,659) (424,183,971)
(23,199,234)
Vehicles, Boats and Aircraft 349,939,524 379,367,714
Other Capital Assets 8,767,745
$523,420,861 $574,283,488
Total Accumulated Depreciation $52,976,219

Depreciable Assets, Net
Business-type Activities

Capital Assets, net:

Note 3: Deposits, Investments, and Repurchase Agreements

Texas Tech University’s investment portfolio is invested pursuant to the parameters of applicable Texas law
and the governing board’s Investment Policies. Under Texas law, Texas Tech University investments may
be “any kind of investment that persons of ordinary prudence, discretion, and intelligence, exercising the
judgment and care under the circumstances then prevailing, acquire or retain for their own account in the
management of their affairs, not in regard to speculation but in regard to the permanent disposition of their
funds, considering the probable income as well as the probable safety of their capital.” Under Texas law,
Texas Tech University is required to invest its institutional funds according to written investment policies
adopted by the Board of Regents. No person may invest Texas Tech University funds without express
written authority from the governing board.

16