CAL STATE L.A. UNIVERSITY (a Component Unit of California ... Cal State L.A. University Auxiliary...

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.

(a Component Unit of

California State University, Los Angeles)

Independent Auditor's Report, Financial Statements and Supplementary Information

June 30, 2017

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. (a Component Unit of California State University, Los Angeles)

Table of Contents Page(s) Independent Auditor’s Report ....................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ....................................... 3 Basic Financial Statements:

Statement of Net Position (Deficit) ......................................................................................................... 11 Statement of Revenues, Expenses and Changes in Net Position (Deficit) .............................................. 12 Statement of Cash Flows ......................................................................................................................... 13 Notes to Basic Financial Statements ........................................................................................................ 15

Required Supplementary Information:

Schedule of Funding Progress ................................................................................................................. 29 Supplementary Information:

Schedule of Net Position ......................................................................................................................... 33 Schedule of Revenues, Expenses and Changes in Net Position .............................................................. 34 Other Information .................................................................................................................................... 35 Note to Supplementary Information ........................................................................................................ 43

www.mgocpa.com Macias Gini & O’Connell LLP 777 S. Figueroa Street, Suite 2500 Los Angeles, CA 90017

1

Independent Auditor’s Report

To the Board of Directors

Cal State L.A. University Auxiliary Services, Inc.

Los Angeles, California

We have audited the accompanying financial statements of Cal State L.A. University Auxiliary Services,

Inc. (UAS), a component unit of California State University, Los Angeles, as of and for the year ended

June 30, 2017, and the related notes to the financial statements, which collectively comprise UAS’ basic

financial statements, as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes the

design, implementation, and maintenance of internal control relevant to the preparation and fair presentation

of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted

our audit in accordance with auditing standards generally accepted in the United States of America and the

standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States. Those standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair

presentation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal

control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of significant accounting estimates made by management,

as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial

position of Cal State L.A. University Auxiliary Services, Inc., as of June 30, 2017, and the changes in

financial position and its cash flows thereof for the year then ended in accordance with accounting principles

generally accepted in the United States of America.

2

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s

discussion and analysis on pages 3-7 and the schedule of funding progress on page 29 be presented to

supplement the basic financial statements. Such information, although not a part of the basic financial

statements, is required by the Governmental Accounting Standards Board, who considers it to be an

essential part of financial reporting for placing the basic financial statements in an appropriate operational,

economic, or historical context. We have applied certain limited procedures to the required supplementary

information in accordance with auditing standards generally accepted in the United States of America,

which consisted of inquiries of management about the methods of preparing the information and comparing

the information for consistency with management’s responses to our inquiries, the basic financial

statements, and other knowledge we obtained during our audit of the basic financial statements. We do not

express an opinion or provide any assurance on the information because the limited procedures do not

provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements. The

accompanying supplementary information on pages 31-43 is presented for purposes of additional analysis

in accordance with an Administrative Directive dated June 24, 2003, Financial Reporting Requirements for

Auxiliary Organizations, and is not a required part of the basic financial statements. Such information is

the responsibility of management and was derived from and relates directly to the underlying accounting

and other records used to prepare the basic financial statements. Such information has been subjected to the

auditing procedures applied in the audit of the basic financial statements and certain additional procedures,

including comparing and reconciling such information directly to the underlying accounting and other

records used to prepare the basic financial statements or to the basic financial statements themselves, and

other additional procedures in accordance with auditing standards generally accepted in the United States

of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic

financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 4, 2017,

on our consideration of UAS’ internal control over financial reporting and on our tests of its compliance

with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose

of that report is to describe the scope of our testing of internal control over financial reporting and

compliance and the results of that testing, and not to provide an opinion on internal control over financial

reporting or on compliance. That report is an integral part of an audit performed in accordance with

Government Auditing Standards in considering UAS’ internal control over financial reporting and

compliance.

Los Angeles, California

October 4, 2017

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Management’s Discussion and Analysis

June 30, 2017 (Unaudited)

3

This section of the Cal State L.A. University Auxiliary Services, Inc., (UAS) annual financial report presents management’s discussion and analysis of the financial performance of UAS during the fiscal year ended June 30, 2017. This discussion has been prepared by management along with the financial statements and related note disclosures and should be read in conjunction with, and is qualified in its entirety by the financial statements and related notes. The financial statements, related notes and this discussion are the responsibility of management.

Overview of the Financial Statements

The financial statements presented herein include all of the activities of UAS as prescribed by statements of the Governmental Accounting Standards Board. UAS is a component unit of California State University, Los Angeles (University). The statement of net position includes all assets, deferred outflows of resources, liabilities and deferred inflows of resources of UAS. It is prepared under the accrual basis of accounting, whereby revenues and receivables are recognized when the services are provided and expenses and liabilities are recognized when incurred, regardless of when cash is exchanged. The statement of revenues, expenses and changes in net position presents information showing how UAS’ net position changed during the fiscal year presented. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, certain revenues and expenses are reported in this statement will result in cash flows for future fiscal periods (e.g., uncollected interest receivable). Statement of Net Position (Deficit)

The following is a summary of the UAS’ assets, liabilities, deferred inflows of resources and net position (deficit) comparing FY 2016-17 with FY 2015-16.

FY 2016-17 FY 2015-16 Percent Change

Current assets 17,796,855$ 16,189,139$ 10%Capital assets, net 20,951,495 21,623,440 -3%Total assets 38,748,350 37,812,579 2%

Current liabilities 11,285,246 10,779,236 5%Long-term liabilities 26,753,760 28,941,818 -8%Total liabilities 38,039,006 39,721,054 -4%

Deferred inflows of resources: 856,936 912,349 -6%

Net investment in capital assets (3,393,303) (3,890,844) 13%Unrestricted 3,245,711 1,070,020 203%Total net position (deficit) (147,592)$ (2,820,824)$ 95%

Net position (deficit):

Assets:

Liabilities:

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Management’s Discussion and Analysis (Continued)


4

Assets UAS’ assets totaled $38.7 million on June 30, 2017, an increase of $0.9 million, or 2% compared to the previous year. Current assets increased $1.6 million, or 10% primarily due to an increase in cash and short term investments which was attributed to the improvement in operating income due to an increase in student population and timing of billings and collections from grants resulting in a higher cash flow balance at year end. Capital assets, net, decreased by $0.7 million, a 3% decrease primarily due to the $1.5 million depreciation expense offset by $0.1 million of new acquisitions, and $0.7 million of construction of the BioSpace building. Liabilities UAS’ liabilities totaled $38.0 million on June 30, 2017, a decrease of $1.7 million, or 4% compared to the previous year. The decrease was the net result of a $0.2 million decrease in accounts payable, $0.8 million increase in unearned revenue, $0.5 million decrease in postemployment healthcare benefits, and a $1.8 million decrease in debt services. The decrease in accounts payable is mainly due to a payment that was made prior to June closing and resulted in a smaller accrued liabilities carried forward to next fiscal year. The increase in unearned revenue is mainly due to timing of collections from grants. The decrease in postemployment healthcare benefits was due to UAS prefunding some of this obligation in the current fiscal year. The other postemployment healthcare benefits liability was calculated based on the annual required contribution of UAS, which is an amount actuarially determined in accordance with the parameters of Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The decrease in debt and obligations was a result of the refinancing of capital lease and notes, and payments made on debt and obligations during the fiscal year. Net Position (Deficit) UAS’ net position increased by $2.7 million, or 95%, from the previous year, primarily due to the facts described in the following page.



5

Statement of Revenues, Expenses and Changes in Net Position (Deficit) The table below is a summary of the UAS’ revenues, expenses and changes in net position (deficit) comparing FY 2016-17 with FY 2015-16.

FY 2016-17 FY 2015-16 Change

Grants and contracts 22,771,930$ 21,739,079$ 5%Auxiliary activities 5,144,125 4,717,247 9%Campus program activities 2,749,050 2,544,760 8%Lease income 1,549,827 1,502,087 3%Other income 877,644 536,733 64%Total operating revenues 33,092,576 31,039,906 7%

Sponsored programs 22,637,754 21,539,067 5%Auxiliary activities 4,145,161 4,243,142 -2%Campus program activities 2,621,531 1,991,145 32%General and administrative 351,184 595,399 -41%Total operating expenses 29,755,630 28,368,753 5%

Total operating income 3,336,946 2,671,153 25%

Interest income 45,501 27,489 66%Interest expense (709,215) (955,151) -26%Loss on retirement of assets - (11,346) -100%Net nonoperating expenses (663,714) (939,008) -29%

2,673,232 1,732,145 54%

Net deficit – beginning (2,820,824) (4,552,969) 38%Net deficit – ending (147,592)$ (2,820,824)$ 95%

Change in net position:

Nonoperating revenues (expenses):

Operating revenues:

Operating expenses:

Operating revenues increased by $2.0 million, or 7%, compared to the previous year. The increase was primarily due to a $1.0 million increase in grants and contracts revenue, $0.4 million increase in auxiliary activities due to an increase in food and catering services, $0.2 million increase in campus program revenue as a result of an increase in student population, and $0.4 million increase in other income as a result of the receipts of capital contribution of the BioSpace Building.



6

Operating expenses increased by $1.3 million, or 5%, compared to the previous year. The increase was primarily a result from the increase in sponsored program reimbursements, auxiliary activities and campus services due to an increase in student population. Nonoperating expenses decreased $0.3 million, or 29%, compared to the previous year. The decrease was primarily due to the refinancing of the capital lease and notes and resulted in a decrease in interest expense, together with the increase of interest income from the Cal State University investment pool. UAS’ net position at the end of 2017 reflected a deficit of $0.1 million, a positive change of $2.7 million from the previous year. The reduction in the deficit is attributed to the operating surplus achieved during the current fiscal year. Capital Assets Capital assets include land, buildings and improvements, fixtures and equipment, and software at June 30, 2017. Total capital assets before accumulated depreciation increased by $0.8 million from the previous year primarily due to the net result of new acquisition and the start of construction of the BioSpace building in the current year. Accumulated depreciation increased by $1.5 million from $20.9 million to $22.4 million. Depreciation expense for the year was $1.5 million. See note 4 for additional information. Debt Administration Debt including capital lease obligations and notes payable totaled $23.5 million at June 30, 2017, a decrease of $1.1 million, or 5% compared to the previous year. The decrease is primarily due to the principal payments for notes payable and capital lease, and the refinancing of the Federal Credit Union notes and Golden Eagle Facility lease by the California State University Revenue Bonds (SRB). See note 6 for additional information. Other Postemployment Healthcare Benefits (OPEB) Plan Postemployment Healthcare Benefits Plan obligations totaled $4.2 million at June 30, 2017, a decrease of $0.4 million, or 9% compared to the previous year. The decrease in obligations is primarily due to a new actuarial valuation study that was performed in the current fiscal year, which resulted in a reduction in annual required contributions from $0.5 million to $0.4 million. In addition, UAS made a pre-funding payment of $0.8 million during the current fiscal year. See note 9 for additional information.



7

Other Potentially Significant Matters California State University Los Angeles recognizes that UAS is central to the mission of the University. UAS supports the academic mission by providing the infrastructure for contracts and grants administration, making available facilities in support of the Division of Extended Education and Special Events, as well as providing additional services to our customers such as food services, educational supplies and textbooks through the bookstore, a campus day care center, and campus vending services. As such, UAS is a vital component of the University. The University thus recognizes the importance of UAS and will continue supporting UAS to ensure that it is a viable business entity. Over the past years, UAS commenced full operations of the student meal program in the new Housing Dining Commons. In the current fiscal year, UAS expanded its food locations in order to serve an increased student population. As such, higher revenues resulted in most of the food operations due to an increase in the student population. All previous and current revenue enhancements have allowed UAS to ensure its continued viability. The University understands the challenges faced by UAS. UAS’ ability to carry out its mission is dependent upon the University and the statewide California State University system (CSU). The transactions entered into between UAS, the University, and CSU continue to reflect this relationship. Because of the facilities and services provided by UAS and the University’s ultimate responsibility for the bond financing of the Golden Eagle Facility, management of the University remains committed to taking all reasonable actions to ensure that UAS continues to provide these vital functions. The UAS Board of Directors also understands the challenges fully disclosed in the current financial reports and the need to seize potential opportunities to improve UAS’ financial position. Contacting the Cal State L.A. University Auxiliary Services, Inc. Management This financial report is designed to provide the public with an overview of UAS’ financial operations and condition. If you have questions about this report or need additional information, you can contact the UAS Executive Director at 5151 State University Drive, Los Angeles, CA 90032.

8

This page left blank intentionally.

9

BASIC FINANCIAL STATEMENTS

10


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Statement of Net Position (Deficit)

June 30, 2017

AssetsCurrent assets:

Cash and cash equivalents $ 7,637,954 Restricted cash and cash equivalents 5,525,082 Accounts receivable, net 4,605,573 Inventory 28,246

Total current assets 17,796,855

Capital assets, net:Non-depreciable 1,368,326 Depreciable 19,583,169 Total capital assets, net 20,951,495

Total assets 38,748,350

LiabilitiesCurrent liabilities:

Accounts payable 1,413,159 Accrued expenses 1,501,438 Unearned revenue 6,412,985 Due to the University 637,091 Compensated absences 317,173 Notes payable 128,400 Capital lease obligation 875,000

Total current liabilities 11,285,246

Long-term liabilities:Compensated absences 60,532 Other postemployment healthcare benefits 4,208,766 Notes payable 1,761,020 Capital lease obligation 20,723,442

Total long-term liabilities 26,753,760

Total liabilities 38,039,006

Deferred inflows of resources:Unamortized gain on sale of property 174,256 Unamortized gain on refunding 682,680

Total deferred inflow of resources 856,936

Net position (deficit):Net investment in capital assets (3,393,303) Unrestricted 3,245,711

Total net position (deficit) $ (147,592)

See accompanying notes to basic financial statements.11

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Statement of Revenues, Expenses and Changes in Net Position (Deficit)

For the Year Ended June 30, 2017

Operating revenues:Grants and contracts $ 22,771,930 Revenue from auxiliary activities 5,144,125 Campus program activities 2,749,050 Lease income 1,549,827 Other income 877,644

Total operating revenues 33,092,576

Operating expenses:Sponsored programs 22,637,754 Auxiliary activities 4,145,161 Campus program activities 2,621,531 General and administrative 351,184

Total operating expenses 29,755,630

Operating income 3,336,946

Nonoperating revenues (expenses):Interest income 45,501 Interest expense (709,215)

Net nonoperating expenses (663,714)

Change in net position 2,673,232

Net deficit - beginning of year (2,820,824)

Net deficit - end of year $ (147,592)

See accompanying notes to basic financial statements. 12

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Statement of Cash Flows

For the Year Ended June 30, 2017

Cash flows from operating activities:Federal grants and contracts $ 18,617,111 State and local grants and contracts 2,012,818 Nongovernmental grants and contracts 3,474,421 Payments to suppliers (10,835,280) Payments to employees (14,810,784) Payments to students (3,313,060) Sales and services of educational activities 2,749,050 Sales and services of auxiliary enterprises 6,826,994 Other receipts 953,822

Net cash provided by operating activities 5,675,092

Cash flows from capital and related financing activities:Acquisition of capital assets (842,667) Principal paid on capital debt and leases (1,595,980) Interest paid on capital debt and leases (920,516)

Net cash used for capital and related financing activities (3,359,163)

Cash flows from investing activities:Investment income 46,091

Net cash provided by investing activities 46,091

Net increase in cash and cash equivalents 2,362,020 Cash and cash equivalents - beginning of year 10,801,016 Cash and cash equivalents - end of year $ 13,163,036

Reconciliation of operating income to net cash provided by operating activities:Operating income $ 3,336,946 Adjustments to reconcile operating income to net cash provided by

operating activities:Depreciation 1,514,612 Change in assets and liabilities:

Decrease in accounts receivable 717,016 Increase in inventory (2,315) Decrease in prepaid expenses and other current assets 39,603 Decrease in accounts payable (226,339) Decrease in accrued expenses (46,400) Increase in unearned revenue 824,624 Decrease in compensated absences (38,047) Decrease in other postemployment healthcare benefits (444,608)

Net cash provided by operating activities $ 5,675,092

Noncash capital and related financing activities:Amortization of capital lease and note premiums $ (150,673) Amortization of gain on refunding (44,522) Amortization of gain on sale of property (10,891)

See accompanying notes to basic financial statements.13

14


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Notes to Basic Financial Statements

June 30, 2017

15

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity Cal State L.A. University Auxiliary Services, Inc. (UAS) is a recognized nonprofit auxiliary and a component unit of California State University, Los Angeles (University). UAS serves as a multi-purpose auxiliary operating at the University. UAS exists to serve the California State University (CSU) and the University and provides the University with services, which are an integral part of the educational program of the CSU and the University. The principal activities of UAS are grants and contracts administration, management of the bookstore, food services, campus day care center, and campus vending services. In order for UAS to execute operations in support of the University’s mission, the CSU and University provide essential support and services to the auxiliary. UAS’ ability to carry out its mission is dependent upon the University and CSU, and transactions entered into between UAS, the University, and CSU reflects this relationship. Basis of Accounting and Measurement Focus The accompanying basic financial statements of the UAS have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the Governmental Accounting Standards Board (GASB), the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The UAS operates as a business enterprise and the accompanying financial statements reflect the flow of economic resources measurement focus and the full accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows. An enterprise fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund’s principal ongoing operations. The principal operating revenues of the UAS’ enterprise fund are grants and contracts, campus program revenue and revenue from auxiliary activities. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, demand deposits, money market accounts, restricted cash from grants and contracts, and UAS’ share in the California State University system’s cash and investments pool, which are reported at fair value. For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates and have an original maturity of three months or less at time of purchase.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Notes to Basic Financial Statements (Continued)

June 30, 2017

16

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts Receivable Accounts receivable consists of amounts due from grants and contracts, the University and others. Annually, a review of outstanding receivables is conducted to determine collectability on past due receivables and an allowance is established based on historical data. Capital Assets Building and improvements, furniture, fixtures and equipment are stated at cost at the date of acquisition. UAS capitalizes all expenses for building improvements, furniture, fixtures and equipment with costs in excess of $5,000 and with a useful life of one year or more and for which it is deemed probable that the assets will not revert back to the granting agency. For furniture, fixtures and equipment, depreciation is calculated using the straight-line method over the assets’ estimated useful lives, which range from three to seven years. Building improvements are stated at cost and are amortized using the straight-line method over the estimated useful life of the asset or term of the lease, whichever is less. Buildings and housing are depreciated over 30 years. Components of Net Position Net investment in capital assets – This component of the net position consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt proceeds or deferred inflows of resources at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Restricted - This component of net position consists of restricted assets reduced by liabilities related to those assets. Unrestricted – This component of net position consists of the net amount of those assets that are not included in the determination of net investment in capital assets or the restricted component of net position. Policy Regarding Use of Restricted vs. Unrestricted Resources When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the UAS will utilize restricted resources first, and then unrestricted resources as needed. Income Taxes UAS is exempt from federal income and state franchise taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701d of the California Revenue and Taxation Code, respectively. Accordingly, there is no provision for income taxes in the financial statements. UAS has implemented Accounting Standards Codification (ASC) topic 740-10-25, Income taxes – Overall – Recognition, for uncertainty in tax positions and has determined there is no material impact on the financial statements.


June 30, 2017

17

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Management has considered its tax positions and believes that all of the positions taken by UAS in their federal and state exempt organization tax returns are more likely than not to be sustained upon examinations. As of June 30, 2017, UAS’ returns are subject to examination by federal taxing authorities for years 2017, 2016, and 2015, and by state taxing authorities for the years 2017, 2016, 2015, and 2014. Use of Estimates

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. NOTE 2 – CASH AND CASH EQUIVALENTS Cash and cash equivalents as of June 30, 2017 are composed of the following:

Cash in Bank The California Government Code requires California banks and savings and loan associations to secure UAS' deposits. Obligations pledged to secure deposits must be delivered to an institution other than the institution in which the deposit is made; however, the trust department of the same institution may hold them. Written custodial agreements are required that provide, among other things, that the collateral securities are held separate from the assets of the custodial institution. The pledge to secure deposits is administered by the California Superintendent of Banks. The market value of pledged securities must equal 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure an agency's deposits by pledging first trust deeds or first mortgages having a value of 150 percent of an agency's total deposits. All such collateral is considered to be held by the pledging financial institutions’ trust departments or agents in the name of UAS. At June 30, 2017, cash held by financial institutions for the UAS of $9,645,656 was entirely insured and collateralized as described above. The book balance at June 30, 2017 for UAS was $8,321,073, of which $5,525,082 was restricted for grants and contracts. Pooled Cash and Investments in the California State University System UAS categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Investment in an external government investment pool are not subject to reporting within the level hierarchy.

Cash on hand 5,325$ Cash in banks 8,321,073 Pooled cash and investments 4,836,638 Total 13,163,036$


June 30, 2017

18

NOTE 2 – CASH AND CASH EQUIVALENTS (Continued) UAS has the following recurring fair value measurement as of June 30, 2017: UAS participates in the CSU investment pool (the Pool) managed by U.S. Bank, an asset management and investment advisory firm that serves the CSU. Securities within the investment pool that are not insured are held in the name of CSU. Such short-term investments are reported at fair value, which was $4,836,638, and represents approximately 0.1% of the Pool as of June 30, 2017. Investments in an external investment pool are not subject to reporting within the level hierarchy. There are no specific investments belonging to UAS. As UAS does not own identifiable investments of the Pool, but participates as a shareholder of the Pool, these investments are not individually identifiable and are not included in the leveling hierarchy. The fair value of UAS’ share in the Pool approximates the fair value of the position in the Pool at June 30, 2017. The Pool is not rated as of June 30, 2017. The weighted average to maturity of the Pool as of June 30, 2017 is 1.5 years. Investments in an external investment pool are not subject to reporting within the level hierarchy. Additional information regarding the interest rate, credit, concentration of credit risks and fair value hierarch of UAS’ investments in the Pool can be found in the notes to the California State University system’s basic financial statements. NOTE 3 – ACCOUNTS RECEIVABLE The following is a summary of accounts receivable at June 30, 2017:

Grants and contracts (net of allowance of $243,427) $ 4,231,581 Due from California State University, Los Angeles 162,088 Other (net of allowance of $7,874) 211,904 Total $ 4,605,573

NOTE 4 – CAPITAL ASSETS The capital assets balance at June 30, 2017 consists of the following activity:

Balance BalanceJune 30, 2016 Increases Decreases June 30, 2017

Capital assets, non-depreciable:Land $ 639,000 $ - $ - $ 639,000 Construction in progress - 729,326 - 729,326

Total non-depreciable capital assets 639,000 729,326 - 1,368,326

Capital assets, depreciableBuildings and building improvements under capital lease 32,484,133 10,965 - 32,495,098 Furniture, fixtures and equipment 9,293,352 102,376 (42,096) 9,353,632 Software 95,724 - - 95,724

Total depreciable capital assets 41,873,209 113,341 (42,096) 41,944,454

Less accumulated depreciation:Buildings and building improvements under capital lease (13,010,309) (1,180,180) - (14,190,489)Furniture, fixtures and equipment (7,808,463) (319,259) 42,096 (8,085,626)Software (69,997) (15,173) - (85,170)

Total accumulated depreciation (20,888,769) (1,514,612) 42,096 (22,361,285)Capital assets, depreciable (net) 20,984,440 (1,401,271) - 19,583,169 Capital assets – net $ 21,623,440 $ (671,945) $ - $ 20,951,495


June 30, 2017

19

NOTE 4 – CAPITAL ASSETS (Continued) Depreciation expense for the year ended June 30, 2017 was $1,514,612. NOTE 5 – ACCOUNTS PAYABLE The following is a summary of accounts payable at June 30, 2017:

Accounts payable to third-party vendors $ 1,004,524 Payable to California State University, Los Angeles 408,635 Total $ 1,413,159

NOTE 6 – LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended June 30, 2017 is as follows:

Balance Balance Due inJune 30, 2016 Increases Decreases June 30, 2017 one year

Due to the University (Note 11) 1,269,671$ -$ (632,580)$ 637,091$ 637,091$ Compensated absences 415,752 331,989 (370,036) 377,705 317,173 Notes payable 1,806,200 - (123,400) 1,682,800 128,400

Unamortized note premium 223,373 - (16,753) 206,620 - Capital lease 20,385,000 - (840,000) 19,545,000 875,000

Unamortized capital lease premium 2,187,362 - (133,920) 2,053,442 - Other postemployment healthcare benefits (Note 9) 4,653,374 - (444,608) 4,208,766 -

30,940,732$ 331,989$ (2,561,297)$ 28,711,424 1,957,664$

Less current portion 1,957,664 Total long-term obligation 26,753,760$

Notes Payable On April 1, 2008, UAS entered into an interest-free note payable with the University-Student Union Board, California State University, Los Angeles (USU), an affiliate, for borrowing up to $490,000. The purpose was to purchase furniture, fixtures or equipment, or for tenant improvement costs for Starbucks and Sbarro stores located in USU. Principal payments are $38,400 annually for the first ten years, and $21,200 annually for the remaining five years. The agreement expires in March 2023. As of June 30, 2017, the outstanding balance is $182,800.


June 30, 2017

20

NOTE 6 – LONG-TERM OBLIGATIONS (Continued) On August 1, 2015, the Board of Trustees of the California State University System (Trustees) issued Systemwide Revenue Bonds (SRB), Series 2015A. UAS simultaneously entered into a note agreement (Note) with the Trustees and a portion of the SRB, in the amount of $1,685,000, was issued to UAS to replace the Bond Anticipation Notes (BAN) and refinance the Television Film Media Studio building. Amounts outstanding under the Note totaled $1,500,000 at June 30, 2017. The interest rate of the SRB ranged from 2.0% to 5.0% in the next 13 years and total interest paid for the year is $67,747. In addition, UAS has deferred note premium, totaling of $238,730. This balance will be amortized over the term of the note and, at June 30, 2017, the unamortized premium was $206,620. The principal maturities of notes payable outstanding as of June 30, 2017 are as follows:

Principal Interest Principal InterestYear ending June 30:

2018 38,400$ -$ 90,000$ 65,913$ 2019 38,400 - 90,000 62,638 2020 21,200 - 95,000 58,913 2021 21,200 - 100,000 55,438 2022 21,200 - 105,000 51,613 2023-2027 42,400 - 590,000 180,906 2028-2030 - - 430,000 33,000

182,800$ -$ 1,500,000$ 508,421$

Principal InterestYear ending June 30:

2018 128,400$ 65,913$ 2019 128,400 62,638 2020 116,200 58,913 2021 121,200 55,438 2022 126,200 51,613 2023-2027 632,400 180,906 2028-2030 430,000 33,000

1,682,800$ 508,421$

University Student Union Note with Trustees

Total

Capital Lease Obligation In connection with the issuance of the SRB, Series 2005A&B, by the Trustees, UAS agreed to sell, and the Trustees agreed to purchase, all of UAS’ rights, title and interest in and to the Golden Eagle Facility originally financed with the proceeds of the UAS 2001 Series Bonds.


June 30, 2017

21

NOTE 6 – LONG-TERM OBLIGATIONS (Continued) UAS also simultaneously entered into a Ground and Facilities Lease (Lease) to lease back from the Trustees the Golden Eagle Facility for a lease commencing on April 15, 2005 through November 1, 2032. Based on the terms of the Ground and Facilities Lease, the transaction met the requirements to be treated as a Sale-Leaseback Transaction. The carrying value of the Golden Eagle Facility was approximately $29,001,497 at the time of the Sale-Leaseback Transaction and the purchase price, agreed to as part of the transaction, was $29,352,161. This resulted in a net $350,664 gain on the sale for UAS. This balance is being amortized over the term of the capital lease and, at June 30, 2017, the unamortized gain on the sale was $174,256 and is classified as deferred inflows of resources. The Lease contains certain restrictive covenants including restrictions on the issuance of debt, budget goals, and minimum net income available for debt service and tax code compliance requirements.

On August 1, 2015, the Trustees issued a $21,435,000 SRB, Series 2015A to UAS to refinance the SRB Series 2005A&B. The amount of defeased bond outstanding as of date of refunding total $23,270,000. The refinancing resulted in an economic gain (difference between net present values of the debt service payments on the old lease and new lease) of approximately $3,892,000. In connection with the SRB, UAS renewed the Lease simultaneously with the Trustees through November 1, 2032. Amounts outstanding under the new lease totaled $19,545,000 at June 30, 2017. The interest rate of the SRB ranges from 2.0% to 5.0% in the next 16 years and total interest paid for the year is $841,212. In addition, UAS has deferred capital lease premium, totaling of $2,310,122 and deferred gain on refunding of the old lease, totaling of $764,304. These balances will be amortized over the term of the Lease and, at June 30, 2017, the unamortized premium and gain on refunding were $2,053,442 and $682,680, respectively. The gain on refunding is classified as a deferred inflow of resources. The amount of the leased asset is $29,351,562 and accumulated amortization was $12,873,492 at June 30, 2017. The minimum lease payments required by the lease are as follows:

2018 1,692,313$ 2019 1,690,413 2020 1,688,638 2021 1,688,763 2022 1,695,713 2023 - 2027 8,442,181 2028 - 2032 8,450,201 2033 1,686,125 Total minimum lease payments 27,034,347

(7,489,347) Present value of future minimum lease payments 19,545,000$

Year ending June 30:

Less amount representing interest


June 30, 2017

22

NOTE 7 – FRANCHISE OF BOOKSTORE AND FOOD SERVICE UAS has entered into a qualified management agreement with an unrelated corporation (the Franchisee) under which UAS transferred management responsibilities to the bookstore. On March 22, 2012, the agreement was amended, extending the agreement for a five-year period through March 2017, with an automatic renew option through 2022. Under the agreement, the Franchisee receives a predetermined fixed fee, and a lump-sum incentive award when a specific gross revenue is reached for each contract year. The predetermined fixed fee is designed to cover management costs incurred for the bookstore, Café 47, Golden Eagle express, and Metro Express Convenience Store, including facilities rental and rental of UAS’ leasehold improvements and equipment. During the years ended June 30, 2017 and 2016, UAS recognized net income of $879,926 and $907,287, respectively, relating to this agreement. Under the terms of the amended agreement, UAS receives an additional $49,000 per year to cover utility overhead expenses, a $100,000 unrestricted contribution to support UAS operations, and a one-time $600,000 signing bonus to be used at the discretion of UAS, amortized over the term of the 10-year contract. In addition, the Franchisee will spend up to $250,000 in renovation costs to design, construct, equip, and install fixtures in the bookstore, Café 47, and Metro Express Convenience Store. Both the signing bonus and renovation costs are repayable should the agreement be terminated by UAS prior to March 22, 2022. UAS has various agreements with Franchisees to operate food service units and vending machines on the University campus. Under the terms of the agreements, UAS is to receive a predetermined percentage of total net sales. The agreements expire on various dates through 2022, with most Franchisees renewing under the same terms and conditions, as defined in the agreements. During the years ended June 30, 2017 and 2016, UAS recognized $744,045 and $751,340, respectively, in commission income from net sales. The commission income is included in revenue from auxiliary activities. NOTE 8 – RETIREMENT PLANS UAS Money Purchase Pension Plan (Plan) is a defined contribution plan covering all employees of the UAS who have one year of service and are age twenty-one or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan is administered by Prudential Retirement Insurance and Annuity Company (Prudential). Although UAS has not expressed any intent to do so, UAS has the right under the Plan to modify or discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100 percent vested in their employer contribution. The Plan contributes an amount equal to 6% of eligible employees’ annual salaries. Total contribution payments to this plan for the year ended June 30, 2017, were $254,182. UAS also has a tax-sheltered annuity plan whereby UAS will match up to 6% of eligible employees’ gross salary contributed by the employees. Total contribution payments to this plan for the year ended June 30, 2017, were $156,979.


June 30, 2017

23

NOTE 9 – OTHER POSTEMPLOYMENT HEALTHCARE BENEFITS (OPEB) PLAN Plan Description UAS’ Other Postemployment Healthcare Benefit (OPEB) Plan is a single-employer defined benefit healthcare plan administered by UAS. The OPEB plan provides lifetime postemployment medical coverage to its eligible employees and their spouses. UAS employees hired prior to November 14, 2006, are eligible to receive UAS subsidized postemployment medical coverage for themselves and their spouse if they retire at age 55 or older with at least 10 years of service with UAS. Eligible retirees receive lifetime benefits from UAS as long as they remain enrolled in a medical plan sponsored by UAS. At age 65 retirees have the option of opting out of UAS sponsored coverage. In return, UAS agrees to pay the Medicare Part B premium for these retirees and their spouses. UAS employees hired after November 14, 2006, are eligible to receive UAS subsidized postemployment medical coverage for themselves and their spouse if they retire at age 59.5 or older with at least 10 years of service with UAS. Eligible retirees receive lifetime benefits from UAS as long as they remain enrolled in a medical plan sponsored by UAS. Employees who retire with 10 to 19 years of service are eligible to receive 50% of the maximum UAS subsidy. Employees who retire with 20 or more years of service are eligible to receive 100% of the maximum UAS subsidy. UAS currently sponsors Blue Cross and Kaiser HMOs and two Blue Cross PPOs. UAS contributes a significant portion of the cost of this coverage. Employees and retirees are required to contribute 10% of the monthly premium cost. The maximum UAS monthly contribution is “capped”. The monthly cap in effect for 2017 is:

Employee only $ 707 Two party 1,349

Benefit provisions of the plan are established and may be amended by the UAS Board of Directors. The defined benefit postemployment plan does not issue a separate stand-alone financial report. Funding Policy The contribution requirements of plan members and UAS are established and may be amended by UAS’ Board of Directors. Currently, UAS’ policy is to contribute to the plan on a pay-as-you-go basis. For the year ended June 30, 2017, UAS contributed $827,886. The contribution consists of $77,886 representing premium payments on behalf of its retired employees, and $750,000 representing an additional payment to prefund this obligation.

Annual OPEB Cost UAS’ annual OPEB cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.


June 30, 2017

24

NOTE 9 – OTHER POSTEMPLOYMENT HEALTHCARE BENEFITS (OPEB) PLAN (Continued) The following table shows UAS’ annual required contribution (OPEB costs), for the year ended June 30, 2017, the amount actually contributed to the plan, and changes in UAS’ net OPEB obligation.

Annual required contribution 396,944$ Interest on net OPEB obligation 302,469 Adjustment to annual required contribution (316,135) Annual OPEB cost (expense) 383,278 Contributions made (827,886) Decrease in net OPEB obligation (444,608) Net OPEB obligation - beginning of year 4,653,374 Net OPEB obligation - end of year 4,208,766$

UAS’ annual OPEB cost, actual contributions, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015, 2016, and 2017 were as follows:

Percentage of AnnualYear Annual Actual OPEB Net OPEB

Ended OPEB Cost Contributions Cost Contributed Obligation

6/30/2017 383,278$ 827,886$ 216% 4,208,766$ 6/30/2016 543,481 67,881 12% 4,653,374 6/30/2015 513,788 90,302 18% 4,177,774

Funded Status and Funding Progress The following reflects the funded status of the plan as of the date of the most recent valuation, July 1, 2016:

Actuarial value of plan assets -$ Unfunded actuarial accrued liability (UAAL) 3,324,611$

Funded ratio (actuarial value of plan assets/actuarial accrued liability(AAL)) 0.0%Covered payroll (active plan members) 4,546,235$

UAAL as a percentage of covered payroll 73.1%


June 30, 2017

25

NOTE 9 – OTHER POSTEMPLOYMENT HEALTHCARE BENEFITS (OPEB) PLAN (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2016 actuarial valuation (with results rolled back to 7/1/2015), the entry age normal cost method was used. The actuarial assumptions used to determine the annual required contribution included a 4.0% investment rate of return, (net of administrative expenses) and an annual blended healthcare trend rate of 6.7% initially, reduced by decrements to an ultimate rate of 5.0% after ten years. A 3.25% annual rate of increase in payroll was used. The estimated age-adjusted “true cost” of retiree medical cost ranges from age 55 with an annual cost of $8,940 to age 64 with an annual cost of $12,994. The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis over a period of 30 years. As of July 1, 2015, 8 years of amortization have occurred and 22 years remained. Under the entry age normal cost method the projected benefits allocates the present value of future benefits on a level basis over the earnings or service (in this case earnings) of each employee between the hire date and assumed retirement age. NOTE 10 – COMMITMENTS AND CONTINGENCIES Grants and Contracts Amounts received or receivable from federal and state agencies are subject to audit and any claims may constitute a liability of the applicable funds. The amount, if any, of expenses which may be potentially disallowed cannot be determined at this time. UAS expects such amounts, if any, to be insignificant as of June 30, 2017.


June 30, 2017

26

NOTE 11 - RELATED PARTY TRANSACTIONS UAS is one of the four recognized auxiliary organizations of the University that provide services primarily to the University’s students and faculty. UAS received utilities, mainframe computer services, printing, faculty release time, office supplies, information technology management, accounting and financial services, and human resource services from the University and was charged $7,797,618 for the year ended June 30, 2017. This amount included $1,685,413 of the current year capital lease and note principal and interest expense payments, and $638,922 payment for principal and interest of current year’s balance due to the University. UAS received $4,979,739 from the University for providing catering and campus program services, and space to the University for the usage as classrooms, for special events, and as facilities for the Extended Education Division. In August 2015, UAS participated in the SRB program to refinance the UAS Golden Eagle Building Facility and the Television Film Media Studio building. A capitalized ground lease agreement and a note agreement exist between the CSU Trustees, the University and UAS ending November, 2032 and November 2029 respectively (see note 6). In April 2008, UAS entered into an interest-free note payable with the USU, an affiliate, for borrowing up to $490,000 (see note 6). NOTE 12– LIQUIDITY The Board of Directors reviewed a ten year projection in support of refinancing, the economic plans for the future, and approved the restructuring of the debt through the CSU SRB Program, and on this basis, is confident that the UAS has adequate resources to continue in operational existence for the foreseeable future. Over the past years, UAS commenced full operations of the student meal program in the new Housing Dining Commons. In current fiscal year, UAS expands food locations in order to serve increased student population. As such, higher revenues are resulted in most of the food operations due to an increase in student population. All previous and current revenues enhancements have allowed UAS to continuously improve its operating income in the commercial and administrative operations. The changes implemented have improved fiscal viability, and during the current fiscal year, UAS had an improvement in net position of $2,673,232. NOTE 13 – SUBSEQUENT EVENTS UAS has evaluated subsequent events and transactions for potential recognition or disclosure through October 4, 2017, which is the date the financial statements were available to be issued.

27

REQUIRED SUPPLEMENTARY INFORMATION

28


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Schedule of Funding Progress


29

Schedule of Funding Progress - Other Postemployment Healthcare Benefits

Actuarial Valuation

Date

Actuarial Value of Assets

(A)

Actuarial Accrued Liability(AAL)

Entry Age(B)

Unfunded AAL

(UAAL)(B – A)

Funded Ratio

(A / B)

Covered Payroll

(C)

UAAL as Percentage of

Covered Payroll ((B – A) / C)

7/1/2008 (a) $ - $ 3,332,335 $ 3,332,335 0.0% $ 3,766,933 88.5%7/1/2011 (b) - 4,292,142 4,292,142 0.0% 4,244,324 101.1%7/1/2014 (c) - 4,731,574 4,731,574 0.0% 4,329,488 109.3%7/1/2016 (d) - 3,324,611 3,324,611 0.0% 4,546,235 73.1%

(a) with valuation result rolled back to July 1, 2007(b) with valuation result rolled back to July 1, 2010(c) with valuation result rolled back to July 1, 2013(d) with valuation result rolled back to July 1, 2015

30


31

SUPPLEMENTARY INFORMATION

32


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Schedule of Net Position

June 30, 2017(for inclusion in the California State University)

Assets:

Current assets:Cash and cash equivalents $ 2,801,316 Short-term investments 4,836,638 Accounts receivable, net 4,605,573 Leases receivable, current portion - Notes receivable, current portion - Pledges receivable, net - Prepaid expenses and other current assets 28,246

Total current assets 12,271,773

Noncurrent assets:Restricted cash and cash equivalents 5,525,082 Accounts receivable, net - Leases receivable, net of current portion - Notes receivable, net of current portion - Student loans receivable, net - Pledges receivable, net - Endowment investments - Other long-term investments - Capital assets, net 20,951,495 Other assets -

Total noncurrent assets 26,476,577

Total assets 38,748,350

Deferred outflows of resources:Unamortized loss on debt refunding - Net pension liability - Others -

Total deferred outflows of resources -

Liabilities:

Current liabilities:Accounts payable 1,413,159 Accrued salaries and benefits 1,501,438 Accrued compensated absences, current portion 317,173 Unearned revenue 6,412,985 Capitalized lease obligations, current portion 875,000 Long-term debt obligations, current portion 128,400 Claims liability for losses and loss adjustment expenses, current portion - Depository accounts - Other liabilities 637,091

Total current liabilities 11,285,246

Noncurrent liabilities:Accrued compensated absences, net of current portion 60,532 Unearned revenue - Grants refundable - Capitalized lease obligations, net of current portion 20,723,442 Long-term debt obligations, net of current portion 1,761,020 Claims liability for losses and loss adjustment expenses, net of current portion - Depository accounts - Other postemployment benefits obligations 4,208,766 Net pension liability - Other liabilities -

Total noncurrent liabilities 26,753,760

Total liabilities 38,039,006

Deferred inflows of resources:Service concession arrangements - Net pension liability - Unamortized gain on debt refunding 682,680 Nonexchange transactions - Others 174,256

Total deferred inflows of resources 856,936

Net Position (Deficit):Net investment in capital assets (3,393,303) Restricted for:

Nonexpendable – endowments - Expendable:

Scholarships and fellowships - Research - Loans - Capital projects - Debt service - Others -

Unrestricted 3,245,711 Total net position (deficit) $ (147,592)

See accompanying notes to supplementary schedules.33

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Schedule of Revenues, Expenses and Changes in Net Position

Year Ended June 30, 2017(for inclusion in the California State University)

Revenues:

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

Federal 17,284,691 State 2,012,818 Local 1,414,281 Nongovernmental 2,060,140

Sales and services of educational activities 2,749,050 Sales and services of auxiliary enterprises (net of scholarship

allowances of $0) 6,693,952 Other operating revenues 420,517

Total operating revenues 32,635,449

Expenses:

Operating expenses:Instruction 22,314,605 Research - Public service - Academic support - Student services - Institutional support 2,611,717 Operation and maintenance of plant 3,314,696 Student grants and scholarships - Auxiliary enterprise expenses - Depreciation and amortization 1,514,612

Total operating expenses 29,755,630

Operating income (loss) 2,879,819

Nonoperating revenues (expenses):State appropriations, noncapital - Federal financial aid grants, noncapital - State financial aid grants, noncapital - Local financial aid grants, noncapital - Nongovernmental and other financial aid grants, noncapital - Other federal nonoperating grants, noncapital - Gifts, noncapital 100,000 Investment income (loss), net 45,501 Endowment income (loss), net - Interest expense (709,215) Other nonoperating revenues (expenses) -

Net nonoperating revenues (expenses) (563,714)

Income (loss) before other revenues (expenses) 2,316,105

State appropriations, capital - Grants and gifts, capital 357,127 Additions (reductions) to permanent endowments -

Increase (decrease) in net position 2,673,232

Net position:Net position at beginning of year, as previously reported (2,820,824) Restatements - Net position at beginning of year, as restated (2,820,824) Net position at end of year $ (147,592)


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Other Information


1 Restricted cash and cash equivalents at June 30, 2017:Portion of restricted cash and cash equivalents related to endowments $ - All other restricted cash and cash equivalents 5,525,082

Total restricted cash and cash equivalents $ 5,525,082

2.1 Composition of investments at June 30, 2017: Current

Unrestricted Current Restricted Total Current Noncurrent

Unrestricted Noncurrent Restricted Total Noncurrent Total

State of California Surplus Money Investment Fund (SMIF) $ 1,332 - 1,332 - - - 1,332 State of California Local Agen16 Investment Fund (LAIF) - - - - - - - Corporate bonds 1,332,913 - 1,332,913 - - - 1,332,913 Certificates of deposit 205,110 - 205,110 - - - 205,110 Mutual funds - - - - - - - Money Market funds 20,776 - 20,776 - - - 20,776 Repurchase agreements 13,611 - 13,611 - - - 13,611 Commercial paper - - - - - - - Asset backed securities 413,648 - 413,648 - - - 413,648 Mortgage backed securities 479 - 479 - - - 479 Municipal bonds 21,910 - 21,910 - - - 21,910 U.S. agency securities 1,745,675 - 1,745,675 - - - 1,745,675 U.S. treasury securities 1,081,184 - 1,081,184 - - - 1,081,184 Equity securities - - - - - - - Exchange traded funds (ETFs) - - - - - - - Alternative investments:

Private equity (including limited partnerships) - - - - - - - Hedge funds - - - - - - - Managed futures - - - - - - - Real estate investments (including REITs) - - - - - - - Commodities - - - - - - - Derivatives - - - - - - - Other alternative investment types - - - - - - -

Other external investment pools (excluding SWIFT) State of California Surplus Money Investment Fund (SMIF) - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Other major investments: CSU Consolidated Investment Pool - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - - Add description - - - - - - -

Total investments 4,836,638 - 4,836,638 - - - 4,836,638

Less endowment investments (enter as negative number) - - - - - - - Total investments $ 4,836,638 - 4,836,638 - - - 4,836,638

2.2 Investments held by the University under contractual agreements at June 30, 2017:Portion of investments in note 2.1 held by the University under contractual

agreements at June 30, 2017 : - - - - - - -

2.3 Restricted current investments at June 30, 2017 related to: Amount Add description $ - Add description - Add description - Add description - Add description - Add description - Add description -

Total restricted current investments at June 30, 2017 $ -




2.4 Restricted noncurrent investments at June 30, 2017 related to: AmountEndowment investment $ - Add description - Add description - Add description - Add description - Add description - Add description - Add description -

Total restricted noncurrent investments at June 30, 2017 $ -

2.5 Fair value hierarchy in investments at June 30, 2017:

Total

Quoted Prices in Active Markets for

Identical Assets (Level 1)

Significant Other Observable Inputs

(Level 2)

Significant Unobservable

Inputs (Level 3)

Net Asset Value (NAV)

State of California Surplus Money Investment Fund (SMIF) $ 1,332 - - - 1,332 State of California Local Agen16 Investment Fund (LAIF) - - - - - Corporate bonds 1,332,913 - 177,976 1,154,937 - Certificates of deposit 205,110 - 205,110 - - Mutual funds - - - - - Money Market funds 20,776 6 - - 20,770 Repurchase agreements 13,611 - 13,611 - - Commercial paper - - - - - Asset backed securities 413,648 413,648 - - - Mortgage backed securities 479 - 479 - - Municipal bonds 21,910 - 21,910 - - U.S. agency securities 1,745,675 881,395 864,280 - - U.S. treasury securities 1,081,184 - 1,081,184 - - Equity securities - - - - - Exchange traded funds (ETFs) - - - - - Alternative investments:

Private equity (including limited partnerships) - - - - - Hedge funds - - - - - Managed futures - - - - - Real estate investments (including REITs) - - - - - Commodities - - - - - Derivatives - - - - - Other alternative investment types - - - - -

Other external investment pools (excluding SWIFT) State of California Surplus Money Investment Fund (SMIF) - - - - - Add description - - - - - Add description - - - - - Add description - - - - - Add description - - - - - Add description - - - - - Other major investments: CSU Consolidated Investment Pool - - - - - Add description - - - - - Add description - - - - - Add description - - - - - Add description - - - - - Add description - - - - -

Total investments $ 4,836,638 1,295,049 2,364,550 1,154,937 22,102

Fair Value Measurements Using




3.1 Composition of capital assets at June 30, 2017:Balance Transfers of

Balance Prior period June 30, 2016 Completed BalanceJune 30, 2016 Adjustments Reclassifications (restated) Additions Reductions CWIP June 30, 2017

Nondepreciable/nonamortizable capital assets:Land and land improvements $ 639,000 - - 639,000 - - - 639,000 Works of art and historical treasures - - - - - - - - Construction work in progress (CWIP) - - - - 729,326 - - 729,326 Intangible assets:

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

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

Total intangible assets - - - - - - - -

Total nondepreciable/nonamortizable capital assets 639,000 - - 639,000 729,326 - - 1,368,326

Depreciable/amortizable capital assets:Buildings and building improvements 31,806,670 - - 31,806,670 10,965 - - 31,817,635 Improvements, other than buildings 99,921 - - 99,921 - - - 99,921 Infrastructure - - - - - - - - Leasehold improvements 577,542 - - 577,542 - - - 577,542 Personal property:

Equipment 9,293,352 - - 9,293,352 102,376 (42,096) - 9,353,632 Library books and materials - - - - - - - -

Intangible assets:Software and websites 95,724 - - 95,724 - - - 95,724 Rights and easements - - - - - - - - Patents, copyright and trademarks - - - - - - - - Licenses and permits - - - - - - - - Other intangible assets:

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

Total intangible assets 95,724 - - 95,724 - - - 95,724

Total depreciable/amortizable capital assets 41,873,209 - - 41,873,209 113,341 (42,096) - 41,944,454

Total capital assets 42,512,209 - - 42,512,209 842,667 (42,096) - 43,312,780

Less accumulated depreciation/amortization:Buildings and building improvements (12,509,609) - - (12,509,609) (1,125,224) - - (13,634,833) Improvements, other than buildings (36,021) - - (36,021) (9,992) - - (46,013) Infrastructure - - - - - - - - Leasehold improvements (464,678) - - (464,678) (44,964) - - (509,642) Personal property:

Equipment (7,808,464) - - (7,808,464) (319,259) 42,096 - (8,085,627) Library books and materials - - - - - - - -

Intangible assets:Software and websites (69,997) - - (69,997) (15,173) - - (85,170) Rights and easements - - - - - - - - Patents, copyright and trademarks - - - - - - - - Licenses and permits - - - - - - - - Other intangible assets:

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

Total intangible assets (69,997) - - (69,997) (15,173) - - (85,170)

Total accumulated depreciation/amortization (20,888,769) - - (20,888,769) (1,514,612) 42,096 - (22,361,285) Total capital assets, net $ 21,623,440 - - 21,623,440 (671,945) - - 20,951,495

Add descriptionAdd description

Add descriptionAdd description

Add description




3.2 Detail of depreciation and amortization expense for the year ended June 30, 2017:

Depreciation and amortization expense related to capital assets $ 1,514,612 Amortization expense related to other assets -

Total depreciation and amortization $ 1,514,612

4 Long-term liabilities activity schedule:

BalanceBalance Prior period June 30, 2016 Balance Current Long-term

June 30, 2016 adjustments Reclassifications (restated) Additions Reductions June 30, 2017 portion portion

$ 415,752 - - 415,752 331,989 (370,036) 377,705 317,173 60,532 - - - - - - - - -

Capitalized lease obligations:Gross balance 20,385,000 - - 20,385,000 - (840,000) 19,545,000 875,000 18,670,000 Unamortized premium / (discount) on capitalized lease obligations 2,187,362 - - 2,187,362 - (133,920) 2,053,442 - 2,053,442

Total capitalized lease obligations 22,572,362 - - 22,572,362 - (973,920) 21,598,442 875,000 20,723,442

Long-term debt obligations:Auxiliary revenue bonds - - - - - - - - - Commercial paper - - - - - - - - - Notes payable related to SRB 1,585,000 - - 1,585,000 - (85,000) 1,500,000 90,000 1,410,000 Others: (list by type)Note Payable - University Student Union 221,200 - - 221,200 - (38,400) 182,800 38,400 144,400 Add description - - - - - - - - - Add description - - - - - - - - - Add description - - - - - - - - - Add description - - - - - - - - - Add description - - - - - - - - -

Total long-term debt obligations 1,806,200 - - 1,806,200 - (123,400) 1,682,800 128,400 1,554,400

Unamortized bond premium / (discount) 223,373 - - 223,373 - (16,753) 206,620 - 206,620 Total long-term debt obligations, net 2,029,573 - - 2,029,573 - (140,153) 1,889,420 128,400 1,761,020 Total long-term liabilities $ 25,017,687 - - 25,017,687 331,989 (1,484,109) 23,865,567 1,320,573 22,544,994

5 Future minimum lease payments - capitalized lease obligations:

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

Year ending June 30:2018 875,000 817,313 1,692,313 - - - 875,000 817,313 1,692,313 2019 910,000 780,413 1,690,413 - - - 910,000 780,413 1,690,413 2020 950,000 738,638 1,688,638 - - - 950,000 738,638 1,688,638 2021 985,000 703,763 1,688,763 - - - 985,000 703,763 1,688,763 2022 1,030,000 665,713 1,695,713 - - - 1,030,000 665,713 1,695,713 2023 - 2027 5,890,000 2,552,181 8,442,181 - - - 5,890,000 2,552,181 8,442,181 2028 - 2032 7,260,000 1,190,201 8,450,201 - - - 7,260,000 1,190,201 8,450,201 2033 - 2037 1,645,000 41,125 1,686,125 - - - 1,645,000 41,125 1,686,125 2038 - 2042 - - - - - - - - - 2043 - 2047 - - - - - - - - - 2048 - 2052 - - - - - - - - - 2053 - 2057 - - - - - - - - - 2058 - 2062 - - - - - - - - - 2063 - 2067 - - - - - - - - -

Total minimum lease payments 19,545,000 7,489,347 27,034,347 - - - 19,545,000 7,489,347 27,034,347

Less amounts representing interest (7,489,347)

Present value of future minimum lease payments 19,545,000

Unamortized net premium (discount) 2,053,442

Total capitalized lease obligations 21,598,442

Less: current portion (875,000) Capitalized lease obligation, net of current portion $ 20,723,442

All other capitalized lease obligations Total capitalized lease obligations

Accrued compensated absencesClaims liability for losses and loss adjustment expenses

Capitalized lease obligations related to SRB




6

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

2018 $ 90,000 65,913 155,913 38,400 - 38,400 128,400 65,913 194,313 2019 90,000 62,638 152,638 38,400 - 38,400 128,400 62,638 191,038 2020 95,000 58,913 153,913 21,200 - 21,200 116,200 58,913 175,113 2021 100,000 55,438 155,438 21,200 - 21,200 121,200 55,438 176,638 2022 105,000 51,613 156,613 21,200 - 21,200 126,200 51,613 177,813 2023 - 2027 590,000 180,906 770,906 42,400 - 42,400 632,400 180,906 813,306 2028 - 2032 430,000 33,000 463,000 - - - 430,000 33,000 463,000 2033 - 2037 - - - - - - - - - 2038 - 2042 - - - - - - - - - 2043 - 2047 - - - - - - - - - 2048 - 2052 - - - - - - - - - 2053 - 2057 - - - - - - - - - 2058 - 2062 - - - - - - - - - 2063 - 2067 - - - - - - - - -

Total minimum payments 1,500,000 508,421 2,008,421 182,800 - 182,800 1,682,800 508,421 2,191,221

Less amounts representing interest (508,421)

Present value of future minimum payments 1,682,800

Unamortized net premium (discount) 206,620

Total long-term debt obligations 1,889,420

Less: current portion (128,400) Long-term debt obligations, net of current portion $ 1,761,020

7 Calculation of net position

7.1 Calculation of net position - net investment in capital assets

Capital assets, net of accumulated depreciation $ 20,951,495 Capitalized lease obligations, current portion (875,000) Capitalized lease obligations, net of current portion (20,723,442) Long-term debt obligations, current portion (128,400) Long-term debt obligations, net of current portion (1,761,020) Portion of outstanding debt that is unspent at year-end - Other adjustments: (please list)Deferred inflows - Unamortized gain on sale of property (174,256) Unamortized gain on refunding (682,680) Add description - Add description -

Net position - net investment in capital asset $ (3,393,303)

7.2 Calculation of net position - restricted for nonexpendable - endowmentsPortion of restricted cash and cash equivalents related to endowments $ - Endowment investments - Other adjustments: (please list) Add description - Add description - Add description - Add description - Add description - Add description - Add description - Add description - Add description - Add description - Net position - Restricted for nonexpendable - endowments per SNP $ -

Year ending June 30:

All other long-termdebt obligations Total long-term debt obligations

Long-term debt obligation schedule

Auxiliary revenue bonds




8 Transactions with related entitiesAmount

Payments to University for salaries of University personnel working on contracts, grants, and other programs $ 2,530,509 Payments to University for other than salaries of University personnel 5,267,109 Payments received from University for services, space, and programs 4,979,739 Gifts-in-kind to the University from discretely presented component units - Gifts (cash or assets) to the University from discretely presented component units - Accounts (payable to) University (enter as negative number) (408,635) Other amounts (payable to) University (enter as negative number) (637,091) Accounts receivable from University 162,088 Other amounts receivable from University -

9 Other postemployment benefits obligation (OPEB)

Annual required contribution (ARC) $ 383,278 Contributions during the year (827,886) Increase (decrease) in net OPEB obligation (NOO) (444,608) Other adjustments -

NOO - beginning of year 4,653,374 NOO - end of year $ 4,208,766

10 Pollution remediation liabilities under GASB Statement No. 49:

Description Amount Add description $ - Add description - Add description - Add description - Add description - Add description - Add description - Add description - Add description - Add description -

Total pollution remediation liabilities $ -

Less: current portion - Pollution remedition liabilities, net of current portion $ -

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

Class AmountDr. (Cr.)

Net position as of June 30, 2016, as previously reported $ (2,820,824) Prior period adjustments:

## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) - ## (list description of each adjustment) -

Net position as of June 30, 2016, as restated $ (2,820,824)




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

Net position class:______________________## (breakdown of adjusting journal entry)

$ - -


- -


- -


- -


- -


- -


- -


- -


- -


- -


42


CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Note to Supplementary Information

June 30, 2017

43

1. Basis of Presentation These schedules are prepared in accordance with the instructions listed in an Administrative Directive, dated June 24, 2003; Financial Reporting Requirements for Auxiliary Organizations, from the California State University Office of the Chancellor and revision dated September 29, 2017. As a result, these schedules do not purport to represent financial statements prepared fully in accordance with accounting principles generally accepted in the United States of America applicable to governmental not-for-profit organizations.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.

(a Component Unit of California State University, Los Angeles)

Single Audit Reports

Year Ended June 30, 2017

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. (a Component Unit of California State University, Los Angeles)

Table of Contents Page Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .............................................................. 1 Independent Auditors’ Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ....................................................... 3 Schedule of Expenditures of Federal Awards .............................................................................................. 7 Notes to Schedule of Expenditures of Federal Awards .............................................................................. 15 Schedule of Findings and Questioned Costs .............................................................................................. 16 Summary Schedule of Prior Year Audit Findings ..................................................................................... 18


1

Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit

of Financial Statements Performed in Accordance with Government Auditing Standards

Board of Directors Cal State L.A. University Auxiliary Services, Inc. Los Angeles, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Cal State L.A. University Auxiliary Services, Inc. (UAS), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise UAS’s basic financial statements, and have issued our report thereon dated October 4, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered UAS’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of UAS’s internal control. Accordingly, we do not express an opinion on the effectiveness of UAS’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether UAS’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

2

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of UAS’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the UAS’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Los Angeles, California October 4, 2017


3

Independent Auditors’ Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures

of Federal Awards Required by the Uniform Guidance Board of Directors Cal State L.A. University Auxiliary Services, Inc. Los Angeles, California Report on Compliance for Each Major Federal Program We have audited Cal State L.A. University Auxiliary Services, Inc.’s (UAS) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of UAS’s major federal programs for the year ended June 30, 2017. UAS’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of UAS’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about UAS’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of UAS’s compliance. Opinion on Each Major Federal Program In our opinion, UAS complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017.

4

Report on Internal Control over Compliance Management of UAS is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered UAS’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of UAS’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of UAS as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise UAS’s basic financial statements. We issued our report thereon dated October 4, 2017, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.

5

In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Los Angeles, California October 30, 2017

6

This page intentionally left blank.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC.Schedule of Expenditures of Federal Awards

Year Ended June 30, 2017Catalog of

Federal Domestic

Assistance Number (CFDA) Pass-Through Grantor

Pass-Through EntityIdentifying Number

Total Federal Expenditures

Passed Through to Subrecipients

OTHER AWARDS:

U.S. Department of AgricultureCFDA # 10.558 - Child and Adult Care Food Program

Child Care Food Program 2015-2016 10.558 California Department of Education 13529/13534 16,956$ -$ Child Care Food Program 2016-2017 10.558 California Department of Education 13529/13534 50,910 -

Subtotal CFDA # 10.558 67,866 -

CFDA # 10.561 - State Administrative Matching Grants for the Supplemental Nutrition Assistance ProgramCalFresh Outreach Plan 10.561 CSU Chico Research Foundation SUB16-047 24,308 -

Subtotal CFDA # 10.561 24,308 - Subtotal U.S. Department of Agriculture 92,174 -

U.S. Department of CommerceCFDA # 11.300 - Investments for Public Works and Economic Development Facilities

BioSciences Business Incubator 11.300 400,145 - Subtotal CFDA # 11.300 400,145 - Subtotal U.S. Department of Commerce 400,145 -

U.S. Department of DefenseCFDA # 12.300 - Basic and Applied Scientific Research

Naval STEM Program at Cal State LA 12.300 114,636 - Subtotal CFDA # 12.300 114,636 - Subtotal U.S. Department of Defense 114,636 -

U.S. Department of JusticeCFDA # 16.560 - National Institute of Justice Research, Evaluation, and Development Project Grants

Questioning Bias: Validating a Bias Crime Victim 16.560 Vera Institute of Justice 2015-R2-CX-0037 27,660 - Subtotal CFDA # 16.560 27,660 - Subtotal U.S. Department of Justice 27,660 -

U.S. Department of Transportation CFDA # 20.215 - Highway Training and Education

CSULA - Summer Transportation Institute (STI) 2016-2017 20.215 California Department of Transportation 88A0106 54,999 - CSULA - Summer Transportation Institute (STI) 2017-2018 20.215 California Department of Transportation 88A0110 3,382 -

Subtotal CFDA # 20.215 58,381 - Subtotal U.S. Department of Transportation 58,381 -

U.S. Department of the Treasury CFDA # 21.009 - Volunteer Income Tax Assistance (VITA) Matching Grant Program

CSULA VITA (Volunteer Income Tax Assistance) Program 2015-2016 21.009 171 - CSULA VITA (Volunteer Income Tax Assistance) Program 2016-2017 21.009 10,467 -

Subtotal CFDA # 21.009 10,638 - Subtotal U.S. Department of the Treasury 10,638 -

National Aeronautics and Space AdministrationCFDA # 43.001 - Science

HyTES Sensor 2014-2015 43.001 Jet Propulsion Laboratory 1527658 11,784 - Subtotal CFDA # 43.001 11,784 - Subtotal National Aeronautics and Space Administration 11,784 -

National Endowment for the HumanitiesCFDA # 45.160 - Promotion of the Humanities_Fellowships and Stipends

A Linguistic Study of Brasillica 45.160 25,194 - Subtotal CFDA # 45.160 25,194 - Subtotal National Endowment for the Humanities 25,194 -

Federal Grantor/ Program/ Cluster Name

The accompanying notes are an integral part of this schedule.7



Federal Domestic




Passed Through to Subrecipients Federal Grantor/ Program/ Cluster Name

National Science FoundationCFDA # 47.041 - Engineering Grants

Revolutionizing Metallic Biomaterials for National Science Foundation 47.041 North Carolina Agricultural & Technical State University

260118B (EEC-0812348) 20,797 -

MRI: Acquisition of a State-of-the Art Shake Table System to Enhance Teaching and Research at California State University, Los Angeles

47.041 125,794 -

I-Corps: Commercialization of SaaS for Automotive Dealership Service 47.041 6,584 - Subtotal CFDA # 47.041 153,175 -

CFDA # 47.049 - Mathematical and Physical Sciences PREM: Cal State LA & Penn State Partnership for Materials Research and Education Development 47.049 517,563 28,259

Subtotal CFDA # 47.049 517,563 28,259

CFDA # 47.070 - Computer and Information Science and Engineering I-Corps Antifreeze Protein Addictive - I:Corps Site: A Biological Sciences Site for the California State University2016-2017

47.070 San Diego State University Research Foundation

SA0000467 Amend # 2 2,610 -

I-Corps: Thermal Protection Method - I:Corps Site: A Biological Sciences Site for the California State University2016-2017

47.070 San Diego State University Research Foundation

SA0000467 Amend # 2 2,384 -

Subtotal CFDA # 47.070 4,994 -

CFDA # 47.076 - Education and Human ResourcesTransforming Experience of Computer Science 47.076 San Francisco State University Foundation S12-0005 6,161 - 2014 CSU-LSAMP Bridges to the Doctorate at CSULA 47.076 University Enterprises, Inc., CSU Sacramento 524921 789 - Louis Stokes Alliance for Minority Participation Bridge to the Doctorate (Cohort XII) 47.076 University Enterprises, Inc., CSU Sacramento 526161 32,777 - Louis Stokes Alliance for Minority Participation Bridge to the Doctorate (LSAMP-BD) at CSULA 2015 47.076 University Enterprises, Inc., CSU Sacramento 524922 39,669 - CSU-LSAMP (Louis Stokes Alliance for Minority Participation) Senior Phase - Phase V (Undergraduates - Year 3) 47.076 University Enterprises, Inc., CSU Sacramento 523831 (17) * - Louis Stokes Alliance for Minority Participation Bridge to the Doctorate (Cohort XII) 2016-2017 47.076 University Enterprises, Inc., CSU Sacramento 526161 437,135 - CSU-LSAMP (Louis Stokes Alliance for Minority Participation) Senior Phase - Phase V (Undergraduates - Year 4) 47.076 University Enterprises, Inc., CSU Sacramento 523834 30,000 - Louis Stokes Alliance for Minority Participation Bridge to the Doctorate (Cohort XIII) 2016 47.076 University Enterprises, Inc., CSU Sacramento 528261 505,782 - Development and Implementation of a Novel Approach to Teaching Engineering Fundamentals to Engineering Students at CSULA

47.076 87,318 -

BOOST: Bridge Opportunities Offered for the Sophomore Transition 47.076 106,562 - Subtotal CFDA # 47.076 1,246,176 - Subtotal National Science Foundation 1,921,908 28,259

U.S. Department of EducationCFDA # 84.031 - Higher Education_Institutional Aid

Expanding Opportunities for Pre-Health Professionals 84.031M 354,105 - Subtotal CFDA# 84.031M 354,105 -

CFDA # 84.047 - TRIO_Upward BoundUpward Bound Regular-Pasadena 84.047A 487,203 - Upward Bound Regular-Los Angeles 84.047A 332,152 - Upward Bound Math/Science Los Angeles 84.047M 271,922 - Upward Bound Math/Science Pasadena 84.047M 293,644 -

Subtotal CFDA # 84.047A through CFDA # 84.047M 1,384,921 -

CFDA # 84.116 - Fund for the Improvement of Postsecondary Education STEM Education Consortium 84.116F * 560,012 242,018

Subtotal CFDA # 84.116F 560,012 242,018

CFDA # 84.126 - Rehabilitation Services_Vocational Rehabilitation Grants to StatesWork Ability IV (WAIV) Program 84.126A California Department of Rehabilitation 28901 1,952 - Work Ability IV (WAIV) Program 2016-2017 84.126A California Department of Rehabilitation 30036 91,252 -

Subtotal CFDA # 84.126A 93,204 -




Federal Domestic





U.S. Department of Education (Continued)CFDA # 84.325 - Special Education Personnel Development to Improve Services and Results for Children with Disabilities

Preparing Effective Transition Teachers of Students with Visual Impairments (PEET) 84.325 * San Francisco State University Foundation S13-0004 121,530 - Leadership in Special Education for High Need Children in Poverty Schools (Project LEAD) 84.325D * 169,108 - Project START UP (Special Education Teacher Education and Research on Teaching Urban Population) 84.325D * 213,690 - Combined Priority for Personnel Development 84.325K * 176,488 - Combined Priority for Personnel Development 84.325K * 206,724 -

Subtotal CFDA # 84.325 through 84.325K 887,540 -

CFDA # 84.327 - Special Education_Educational Technology Media, and Materials for Individuals with DisabilitiesBraille Challenge App 84.327S 259,668 82,402

Subtotal CFDA # 84.327S 259,668 82,402

CFDA # 84.334 - Gaining Early Awareness and Readiness for Undergraduate ProgramsLAUSD - Go Central City GEARUP 4LA 84.334 LA Unified School District 4400005612 17 -

Subtotal CFDA # 84.334 17 -

CFDA # 84.335 - Child Care Access Means Parents in SchoolChildcare Access Means Parents in School 84.335A 164,869 -

Subtotal CFDA # 84.335A 164,869 -

CFDA # 84.336 - Teacher Quality Partnership GrantsLos Angeles Urban Teacher Residency Program Transformation Initiative 84.336S * 1,798,187 1,004,337

Subtotal CFDA # 84.336S 1,798,187 1,004,337

CFDA # 84.367 - Improving Teacher Quality State GrantsCalifornia Reading Literature Project - No Child Left Behind (NCLB12) 84.367 Regents of the University of California NCLB12-CRLP Cal State LA (13,799) * - Los Angeles Basin California Arts Project (LAB CAP) 2016 84.367 Regents of the University of California NCLB12-TCAP-Cal State LA 389 - Invitational Leadership Institute to Invest in Developing New Teacher Leaders 84.367 National Writing Project 00-CA17-SEED2016-ILI (1,000) * - Supporting Effective Educator Development 84.367D National Writing Project 00-CA17-SEED2012 5,500 -

Subtotal CFDA # 84.367 through 84.367D (8,910) -

CFDA # 84.411 - Investing in Innovation (i3) Fund Innovation Validation Grant 84.411B University of California, Irvine 2014-3025 512,965 -

Subtotal CFDA # 84.411B 512,965 -

CFDA # 84.418 - Promoting Readiness of Minors in Supplemental Security Income CaPROMISE: Promoting the Readiness of Minors in Supplemental Security Income 84.418 Department of Rehabilitation 29497 46,398 - CaPROMISE: Promoting the Readiness of Minors in Supplemental Security Income 2016-2017 84.418 Department of Rehabilitation 30120 168,683 -

Subtotal CFDA # 84.418 215,081 - Subtotal U.S. Department of Education 6,221,659 1,328,757

U.S. Department of Health and Human ServicesCFDA # 93.243 - Substance Abuse and Mental Health Services_Projects of Regional and National Significance

Project Choice: CSULA 2015-2016 93.243 102,041 52,702 Subtotal CFDA # 93.243 102,041 52,702

CFDA # 93.433 - ACL National Institute on Disability, Independent Living, and Rehabilitation ResearchThe Disability, Rehabilittion, Engineering Access for Minorities (DREAM) Project 93.433 54,905 -

Subtotal CFDA # 93.433 54,905 -




Federal Domestic





U.S. Department of Health and Human Services (Continued)Child Care and Development Fund (CCDF) ClusterCFDA # 93.575 - Child Care and Development Block Grant

CA State Preschool Program 2016-2017 93.575 California Department of Education 15136 CSPP-6146 14,978 - General Child Care Program 2016-2017 93.575 California Department of Education 15136 CCTR-6067 32,415 -

Subtotal CFDA # 93.575 47,393 -

CFDA # 93.596 - Child Care Mandatory and Matching Funds of the Child Care and Development Fund CA State Preschool Program 2016-2017 93.596 California Department of Education 13609 CSPP-6146 32,952 - General Child Care Program 2016-2017 93.596 California Department of Education 13609 CCTR-6067 69,817 -

Subtotal CFDA # 93.596 102,769 - Subtotal Child Care and Development Fund (CCDF) Cluster 150,162 -

CFDA # 93.658 - Foster Care_Title IV-ECALSWEC: Title IV-E Social Work Training Program FY 14-15 93.658 * Regents of the University of California 00008519 (14-2025) (173) * - CALSWEC 1 Full-Time and Part-Time Training Program 2015-2016 93.658 * Regents of the University of California 00008897 (15-IA-00850) 22,905 - CALSWEC 1 Full-Time and Part-Time Training Program 2016-2017 93.658 * Regents of the University of California 00009238 (16-IA-00775) 1,030,333 -

Subtotal CFDA # 93.658 1,053,065 -

CFDA # 93.778 - Medical Assistance ProgramLocal Dental Pilot Project 93.778 Department of Health Care Services 16-93566 435 -

Subtotal CFDA # 93.778 435 -

CFDA # 93.859 - Biomedical Research and Research TrainingL.A. Basin Bridges to the PhD Program 93.859 12,748 -

Subtotal CFDA # 93.859 12,748 - Subtotal U.S. Department of Health and Human Services 1,373,356 52,702

Corporation for National and Community ServicesCFDA # 94.006 - AmeriCorps

JumpStart - East Los Angeles 94.006 JumpStart for Young Children, Inc. 230200 11,632 - JumpStart - East Los Angeles 2016-2017 94.006 JumpStart for Young Children, Inc. 230200 61,905 -

Subtotal CFDA # 94.006 73,537 - Subtotal Corporation for National and Community Services 73,537 -

Subtotal Other Awards 10,331,072 1,409,718

RESEARCH AND DEVELOPMENT AWARDS:

U.S. Department of CommerceCFDA # 11.020 - Cluster Grants

LA BioStart BioScience Entrepreneur 11.020 38,421 - Subtotal CFDA # 11.020 38,421 -

CFDA # 11.481 - Educational Partnership ProgramNOAA - Cooperative Remote Sensing Science and Technology Center 11.481 Research Foundation of The City University of

New York 49173A (NA11SEC4810004) 69,809 -

Subtotal CFDA # 11.481 69,809 - Subtotal U.S. Department of Commerce 108,230 -

U.S. Department of DefenseCFDA # 12.630 - Basic, Applied, and Advanced Research in Science and Engineering

Triple Resonance Low Temperature MAS Probe for Solid State DNP-NMR and Micro-imaging System for the Study of Ice Binding Protein Enhanced Anti-Icing Fluids

12.630 85,674 -

Non-Contract Geophysical Methods to Predict Near-Surface Seafloor Soil Properties 12.630 38,811 - Subtotal CFDA # 12.630 124,485 - Subtotal U.S. Department of Defense 124,485 -




Federal Domestic





U.S. Department of InteriorCFDA # 15.945 - Cooperative Research and Training Programs – Resources of the National Park System

Bird & Butterfly Community Response to Large-Scale Invasive Plant Removal 15.945 37,824 - Subtotal CFDA # 15.945 37,824 - Subtotal U.S. Department of Interior 37,824 -

U.S. Department of JusticeCFDA # 16.818 - Children Exposed to Violence

OJJDP FY2015 Design Study of Dual System Youth 16.818 491,274 205,681 Subtotal CFDA # 16.818 491,274 205,681 Subtotal U.S. Department of Interior 491,274 205,681

U.S. Department of TransportationCFDA # 20.701 - University Transportation Centers Program

University Transportation for Underground 20.701 Colorado School of Mines 69A3551747118 12,780 - Subtotal CFDA # 20.701 12,780 - Subtotal U.S. Department of Transportation 12,780 -

National Aeronautics and Space AdministrationCFDA # 43.001 - Science

Development of a Virtual Reality Application for the Moon and Mars 43.001 Jet Propulsion Laboratory 1559889 7,892 - Subtotal CFDA # 43.001 7,892 -

CFDA # 43.002 - AeronauticsNASA URC SPACE Center Continuation of CSULA 43.002 20,263 -

Subtotal CFDA # 43.002 20,263 -

CFDA # 43.007 - Space OperationsPore-Mushy Zone Interaction during Directional Solidification of Alloys 43.007 39,831 11,890

Subtotal CFDA # 43.007 39,831 11,890

CFDA # 43.008 - Education Data Intensive Research & Education Center for Science, Technology, Engineering and Mathematics (DIRECT-STEM) 43.008 921,936 312,718

Subtotal CFDA # 43.008 921,936 312,718 Subtotal National Aeronautics and Space Administration 989,922 312,718

National Science FoundationCFDA # 47.041 - Engineering Grants

I-Corps Antifreeze Polypeptide-Based Systems - I:Corps Site: A Biological Sciences Site for the California State University

47.041 24,919 -

Subtotal CFDA # 47.041 24,919 -

CFDA # 47.049 - Mathematical and Physical SciencesRUI: Quantum Criticality, Frustrated Magnetism and Disorder 47.049 30,953 - RUI: Hyphenated Surface Plasmon Resonance Techniques for Enhanced Biomolecular Interaction Studies and Biomarker Detections

47.049 19,171 -

Synchrony in Metapopulations at Multiple Time-Scales: Theory, Experiments and Field Data 47.049 155,966 55,047 RUI: Collaborative Research on Photo Degradation of Oxygenated Polycyclic Aromatic Hydrocarbons on Environmental Interfaces

47.049 52,270 -

RUI: Graph Coloring and Choosability 47.049 30,864 - RUI: Collaborative Research on the Role of Singlet 47.049 22,508 -

Subtotal CFDA # 47.049 311,732 55,047

CFDA # 47.050 - GeosciencesRUI: Collaborative Research: Spatial Realism in the Mussel Bed Disturbance Paradigm 47.050 9,141 -

Subtotal CFDA # 47.050 9,141 -

CFDA # 47.070 - Computer and Information Science and Engineering MRI Collaborative: Development of an Intelligent, Autonomous, Unmanned, Mobile Sensor 47.070 107,226 -

Subtotal CFDA # 47.070 107,226 -




Federal Domestic





National Science Foundation (Continued)CFDA # 47.074 - Biological Sciences

Collaborative: RUI: ARTS: Revisionary Systematics of Herbivorous Sea Slugs: Identifying Traits that Promote Diversification and Morphological Novelty

47.074 44,992 -

RUI: Collaborative Research: Phylogenomics of Cypridinidae (Ostracoda): Evolutionaty Origins of Bioluminescence and Complex Behavioral Displays

47.074 83,501 -

Collaborative Research: RUI Sink or Swim: Phenomic and Transcriptomic Diversification of Sculpins (Teleostel: Cottidae) Emdemic to Lake Baikal, Russia

47.074 5,373 -

Collaborative Research: Dimensions: Desiccation and Diversity in Dryland Mosses 47.074 1,615 - Subtotal CFDA # 47.074 135,481 -

CFDA # 47.076 - Education and Human ResourcesCREST Center for Energy and Sustainability 47.076 7,368 - CREST Center for Energy and Sustainability at California State University, Los Angeles 47.076 613,707 -

Subtotal CFDA # 47.076 621,075 -

CFDA # 47.079 - Office of International and Integrative ActivitiesCollaborative Research: US-Brazil IRES/Analytical Applications of Nanomaterials and Microfluidic Devices 47.079 23,825 -

Subtotal CFDA # 47.079 23,825 - Subtotal National Science Foundation 1,233,399 55,047

U.S. Department of EnergyCFDA # 81.049 - Office of Science Financial Assistance Program

Design Principles for Quantum Hall States 81.049 Princeton University 00001784 (DE-SC0002140) (23,424) * - Design Principles for Quantum Hall States 2015-2016 81.049 Princeton University ORPA001784 126,411 -

Subtotal CFDA # 81.049 102,987 -

CFDA # 81.087 - Renewable Energy Research and DevelopmentCSULA Hydrogen Refueling Facility Performance Evaluation and Optimization 81.087 60,075 -

Subtotal CFDA # 81.087 60,075 - Subtotal U.S. Department of Energy 163,062 -

U.S. Department of EducationCFDA # 84.116 - Fund for the Improvement of Postsecondary Education

Promoting Active Learning Strategies Through the Flipped Class Model in STEM courses at San Jose University, California State University-Los Angeles, and Cal Poly Pomona

84.116 San Jose State University 21-2000-5532-CSULA 2015 126,186 -

Subtotal CFDA # 84.116 126,186 -

CFDA # 84.305 - Education Research, Development and DisseminationScale-Up Evaluation of Reading Intervention for First Grade English Learners 84.305A University of Houston R-14-0113 41,022 -

Subtotal CFDA # 84.305A 41,022 - Subtotal U.S. Department of Education 167,208 -

U.S. Department of Health and Human ServicesCFDA # 93.113 - Environmental Health

Maternal and Developmental Risks from Environmental and Social Stressors (MADRES) 93.113 University of Southern California 66677998 46,948 - Subtotal CFDA # 93.113 46,948 -

CFDA # 93.121 - Oral Diseases and Disorders Research Exploring the Role of Wdr68 in Craniofacial Development in Zebrafish 93.121 140,643 -

Subtotal CFDA # 93.121 140,643 -

CFDA # 93.173 - Research Related to Deafness and Communication DisordersProfiles and Progress in Spanish English Bilinguals with Language Impairment: Development of a Criterion Reference Measure

93.173 59,827 -

Subtotal CFDA # 93.173 59,827 -

CFDA # 93.283 - Centers for Disease Control and Prevention_Investigations and Technical Assistance Public Health Leadership and Learning Undergraduate Student Success (PLLUSS) Program 93.283 Kennedy Krieger Institute, Inc. 3U50MN000025-06 13,190 -

Subtotal CFDA # 93.283 13,190 -




Federal Domestic





U.S. Department of Education (Continued)CFDA # 93.847 - Diabetes, Digestive, and Kidney Diseases Extramural Research

Impact of HIV/SIV Infection on Paneth and Intestinal Stem Cell Infection 93.847 Tulane University TUL-HSC-55249-16/17 12,369 - Subtotal CFDA # 93.847 12,369 -

CFDA # 93.853 - Extramural Research Programs in the Neurosciences and Neurological DisordersAdaptations to Robotic Resistance During Treadmill Training in SCI Rats 93.853 18,348 -

Subtotal CFDA # 93.853 18,348 -

CFDA # 93.859 - Biomedical Research and Research TrainingLipid Effector Molecules of Innate Immunity: Antimicrobial Cholesteryl Esters 93.859 2,426 - Research Initiative for Scientific Enhancement (RISE) Option 3 93.859 1,457,797 - Bridges To The Future 93.859 269,098 - Spin Labeled Ice Binding Proteins for Molecular Antifreeze Mechanistic Study 93.859 76,883 - MARC Undergraduate Student Training in Academic Research 93.859 36,816 - Macromolecular Interactions of t-Darpp and Darpp-32 subcontract from the City of Hope 2015-2016 93.859 Beckman Research Institute City of Hope 50607.2000478.669301 164,896 - Signaling Crosstalk Controlled by a Mad Phosphoserine Code 2016-2017 93.859 72,462 - The Crosstalk Between Arginine Methylation and Science Phosphorylation in Histone H3 93.859 140,740 - Identification and Molecular Basis for Efficient Antifreeze Protein Enhancers 93.859 111,812 - 2016-2017 MARC Undergraduate Student Training in Academic Research 93.859 463,605 - L.A. Basin Bridges to the PhD Program 2016-2017 93.859 108,899 5,106 UPLIFT UCLA Postdocs Longitudinal Investment in Faculty Training 93.859 Regents of the University of California 1445 G UA813 34,103 - Investigating if Mad Linker Phosphorylations can control BMP Receptor Turnover 93.859 16,288 - AK4 Expression Coordinates Dual AMPK and mTOR Signaling 93.859 12,522 - MARC Undergraduate Student Training in Academic Research 2017-2018 93.859 1,133 -

Subtotal CFDA # 93.859 2,969,480 5,106

CFDA # 93.866 - Aging Research Religiosity and Mortality in Later Life 93.866 Syracuse University SP-27843-1-04011-S01 20,162 -

Subtotal CFDA # 93.866 20,162 - Subtotal U.S. Department of Health and Human Services 3,280,967 5,106

Total Research and Development Awards 6,609,151 590,442

Total Expenditures of Federal Awards 16,940,223$ 2,000,160$

** Denotes major program.

Credit balances represent a transfer of expenses from an expiring project to a continuing project with a new project number.


14

This page intentionally left blank.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Notes to Schedule of Expenditures of Federal Awards


15

1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the Cal State L.A. University Auxiliary Services, Inc. (UAS) under programs of the federal government for the year ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). UAS’ reporting entity is defined in Note 1 to UAS’s financial statements. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 3. INDIRECT COST RATE UAS has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 4. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal award expenditures agree or can be reconciled with the amounts reported in UAS’ financial statements. 5. SUBRECIPIENTS UAS passes certain financial awards received to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, UAS reports expenditures of federal awards to subrecipients on an accrual basis. 6. FEDERAL GRANTOR PROGRAM NAME The program name shown on the Schedule represents the name of the program according to the grant agreement. For purposes of identifying major programs on the Schedule, the program name that corresponds to the Catalog of Federal Domestic Assistance (CFDA) was utilized. 7. RESEARCH AND DEVELOPMENT CLUSTER A cluster is defined as a grouping of Federal programs who are closely related and share common compliance requirements. For programs with identical CFDA numbers as shown on the Schedule, the substance of the agreement between UAS and the funding agency is evaluated to determine the proper inclusion into the Research and Development cluster.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Schedule of Findings and Questioned Costs


16

Section I Summary of Auditor’s Results FINANCIAL STATEMENTS Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with accounting principles generally accepted in the United States:

Unmodified

Internal control over financial reporting:

• Material weakness(es) identified? No • Significant deficiency(ies) identified? None reported

Noncompliance material to the financial statements noted? No

FEDERAL AWARDS

Internal control over major federal programs:

• Material weakness(es) identified? No • Significant deficiency(ies) identified? None reported

Type of auditor’s report issued on compliance for major federal programs:

Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?

No

Identification of major programs:

CFDA Number Name of Federal Program or Cluster 84.116 Fund for the Improvement of Postsecondary Education 84.325 Special Education – Personnel Development to Improve

Services and Results for Children with Disabilities 84.336 Teacher Quality Partnership Grants 93.658 Foster Care Title IV-E

Dollar threshold used to distinguish between Type A and Type B programs:

$750,000

Auditee qualified as a low-risk auditee? Yes

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Schedule of Findings and Questioned Costs (Continued)


17

Section II Financial Statement Findings None noted. Section III Federal Award Findings and Questioned Costs None noted.

CAL STATE L.A. UNIVERSITY AUXILIARY SERVICES, INC. Schedule of Findings and Questioned Costs (Continued)


18

Section IV Financial Statement Findings None noted. Section V Federal Award Findings and Questioned Costs Finding#2016-001 Earmarking CFDA #84.378A – California Student Opportunity & Access Program (Cal-SOAP) 2014-2015 Condition During our audit of the program expenditures, UAS spent 27% of the total project cost on stipends to peer advisors and did not meet the 30% requirement as set forth in the agreement with the California Student Aid Commission. Recommendation We recommend that UAS monitor the program spending closely to ensure that the earmarking requirement be met at the end of the project period. Prior Year Management Response UAS concurs. UAS in a joint effort with Campus (Division of Academic Affairs and Division of Student Life) will perform quarterly reviews to ensure that any earmarking requirements are met at the end of the project period on future projects. Current Year Management Response Cal-SOAP 2014-2015 project ended on September 30, 2015. UAS did not receive any additional awards/ funding for the Cal-SOAP project. Therefore, no earmarking requirement reports were needed. Current Status as of June 30, 2017 Implemented.

Date post:	06-Jul-2019
Category:	Documents
Upload:	trandung
View:	212 times
Download:	0 times

CAL STATE L.A. UNIVERSITY (a Component Unit of California ... Cal State L.A. University Auxiliary...

Documents