Comprehensive Annual Financial Report · 2019-11-18 · We are pleased to present to you the...

Clemson, south Carolina

Comprehensive Annual Financial ReportFor the Year Ended June 30, 2019

A component unit of the State of South Carolina

Comprehensive Annual Financial ReportA component unit of the State of South Carolina

For the Year Ended June 30, 2019

Prepared by the Controller's Office

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TABLE OF CONTENTS

TITLE

Introductory Section: Clemson Forward Strategic Plan ..

PAGE

...... 7..................................................................................................... President's Letter ..................................................................................................................................... 9 Letter of Transmittal ................................................................................................................................ 10 CertificateofAchievement ...................................................................................................................... 14 ClemsonUniversityBoardofTrustees ................................................................................................... 15 ClemsonUniversityOrganizationChart ................................................................................................. 16

Financial Section: IndependentAuditor'sReport .................................................................................................................. 19 Management'sDiscussionandAnalysis ................................................................................................. 22 BasicFinancialStatements: ClemsonUniversity-StatementofNetPosition ................................................................................ 30 ClemsonUniversity-StatementofRevenues,ExpensesandChangesinNetPosition ..................... 31 ClemsonUniversity-StatementofCashFlows .................................................................................. 32 ClemsonUniversityFoundation-StatementofFinancialPosition ................................................... 33 ClemsonUniversityFoundation-StatementofActivities ................................................................. 34 ClemsonUniversityLandStewardshipFoundation-StatementofFinancialPosition ..................... 35 ClemsonUniversityLandStewardshipFoundation-StatementofActivities ................................... 36 IPTAY-StatementofFinancialPosition............................................................................................. 37 IPTAY-StatementofActivities .......................................................................................................... 38 NotestoFinancialStatements: Note 1 - SummaryofSignificantAccountingPolicies ................................................................ 39 Note 2 -CashandCashEquivalents,DepositsandInvestments ................................................. 44 Note 3- Receivables .................................................................................................................... 45 Note 4 -CapitalAssets ................................................................................................................. 47 Note 5 -UnearnedRevenues,DepositsandFundsHeldforOthers ............................................ 47 Note 6-BondsPayable ................................................................................................................ 48 Note 7 - LeaseObligations ........................................................................................................... 51 Note 8 - PensionPlans ................................................................................................................. 53 Note 9 -Post-EmploymentBenefitsOtherthanPensions ........................................................... 58 Note10 -DeferredCompensationPlans ........................................................................................ 63 Note11 -Long-TermLiabilities .................................................................................................... 63 Note12 -ConstructionCostsandCommitments........................................................................... 64 Note13 -RelatedParties ............................................................................................................... 65 Note14 -TransactionswithStateEntities ..................................................................................... 66 Note15 -RiskManagement .......................................................................................................... 67 Note16 -ContingenciesandLitigation ......................................................................................... 68 Note17 -OperatingExpensesbyFunction ................................................................................... 68 Note18 -Donor-RestrictedEndowments ...................................................................................... 69 Note19 -DetailsofRestrictedAssets ........................................................................................... 69 Note20 -ComponentUnits ........................................................................................................... 69

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TABLE OF CONTENTS (continued)

TITLE Financial Section (continued): RequiredSupplementaryInformation: ScheduleofUniversity'sProportionateShareoftheNetPensionLiability ..............................

PAGE

.......... 71 ScheduleofUniversityContributionstoPensionPlans ...................................................................... 72 ScheduleofUniversity'sProportionateShareoftheNetRetireeHealthBenefitsLiability ............... 73 ScheduleofUniversityContributionstoRetireeHealthBenefitsPlan ............................................... 74

Statistical Section: ScheduleofRevenuesbySource ............................................................................................................ 78 ScheduleofExpensesbyUse ................................................................................................................ 80 ScheduleofExpensesbyFunction ......................................................................................................... 81 ScheduleofNetPositionandChangesinNetPosition .......................................................................... 82 ScheduleofRatiosofOutstandingDebt ................................................................................................. 83 ScheduleofBondCoverage .................................................................................................................... 84 Admissions,EnrollmentandDegreeStatistics ....................................................................................... 86 UndergraduateAverageAnnualTuitionandFees ................................................................................... 88 FacultyandStaffStatistics ...................................................................................................................... 90 ScheduleofCapitalAssetInformation ................................................................................................... 91 DemographicStatistics............................................................................................................................ 92 TenLargestEmployers ............................................................................................................................ 93

Supplementary Information to the Financial Statements: ScheduleofPledgedNetRevenues-AuxiliaryRevenueBonds(Series2005,2015and2015B) ................... 96 ScheduleofPledgedNetRevenues-AthleticFacilitiesRevenueBonds (Series2012,2014A,2014B,2014C,2015,2015Band2018A) ............................................................................ 97 ClemsonUniversityReportingEntity-CombinedStatementofNet/FinancialPosition ....................... 98 ClemsonUniversityReportingEntity-CombinedStatementofRevenues,Expenses, ActivitiesandChangesinNetPosition ............................................................................................... 100

Introductory Section(unaudited)

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ClemsonForward Strategic Plan

ClemsonForward is built on four key foundations: Research, Engagement, the Academic Core and Living, which spells the acronym REAL. Specific goals and tactics will guide each of those four areas.

RESEARCHClemsonForwardsetsanewbarforresearchfundingandscholarlywork.Clemson’sgoalistocontinuouslyimprove its research quality, quantity and impact; to foster a rich, curiosity-driven intellectualenvironment; to solve real problems; and to create more opportunities for graduates and alumni.This includes continuing unique public/private partnerships driven by the University’s InnovationCampuses, building a culture of innovation and entrepreneurship, and focusing on six strategicinnovationareas—advancedmaterials;cyberinfrastructureandbigdatascience;energy,transportationand advanced manufacturing; human resilience; health innovation; and the sustainable environment.

ENGAGEMENTEngagementwas a cornerstone of the 2020RoadMap and is at the heart of the land-grantmission.ClemsonForwardcapitalizesonexistingstrengthsandopportunitiestoemphasizehigh-impact,evidence-basedacademicandglobalengagement.Italsoemphasizesrigorousassessmentsothatwearebetterabletounderstandandmeasurethelinksbetweentheseengagementexperiencesandstudentlearningandsuccess.

ACADEMIC COREWewillcreateanoptimalpathforacademicprograms—bothundergraduateandgraduate—toachievenational prominence.ClemsonForward enhances the undergraduate academic corewith initiatives ininterdisciplinarycurricula,anewapproachtogeneraleducation,andenhancedadvising.ClemsonForwardalsoextendsthefocusonqualitytothearenaofgraduateeducationandcontainsagreatercommitmenttograduateeducationandthegraduatestudentexperienceatboththemaincampusandtheinnovationcampuses.

LIVINGClemsonForwardwillstrengthenthecherishedsenseofcommunityandconnectednessthatdefinestheClemsonFamilybycreatinganenvironmentthatisdiverse,respectfulandinclusive,furtherenhancingthequalityofstudentlifeanddevelopingpolicies,facilitiesandsupportsystemsthatwillmakeClemsonagreatplacetowork,studyandlive.

KEY ENABLERSTogetherthesepieceswillsupporttherealimpact,realexperience,realintellect,andrealfamilythatmakeuptheheartoftoday’sClemson.Theresearch,engagement,academicandlivinggoalsofClemsonForwardplanrestonfourcriticalenablers:

• Strategic Revenue Growth—Manageenrollment,entrepreneurialactivities,developmentpriorities,operationalefficienciesandrevenueallocationtosupportClemsonForwardinitiatives.

• College reorganization —Enhancethelearningandworkingenvironmentinthesevenacademiccolleges.

• Building Futures —Buildstate-of-the-artnewfacilities,renovateagingstructuresandcreatemulti-functionspacesthatprovideavibrantacademicenvironment.

• Accountability and Leadership —Prudentlymanageexistingresources.Concentratemetricsonmeasuringimpactratherthanactivity.

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President’s Letter2019

DearFriendsofClemson:

ItisagreattimetobeatClemsonUniversity!Clemsonisexcellingatthehighestlevelinallareasofhighereducation.Thispastyearwasanotherrecord-settingyearforClemsoninadmissions,enrollment,graduationandretentionrates,researchfunding,privatefundraising,athletics,andfacilitiesdevelopment.Wewererankedamongthetop-25publicuniversitiesbyU.S.News&WorldReportfortheeleventhconsecutiveyear,andwewerereaffirmedasaResearch1UniversitybyCarnegieClassificationforInstitutionsofHigherEducation.WearealsorankedintheTop10nationallybyPrincetonReviewinsevencategories—careerservices,studentslovetheircollege,alumninetwork,town-gownrelations,happieststudents,bestschoolsforinternships,andstudentsplayintramuralsports.

TheClemsoncampuscontinuestoevolveandgrow.Constructioniswellunderwayforournewbuildingforbusinesseducation,aswellasthenewoutdoorrecreationbuildingattheSnowFamilyOutdoorFitnessandWellnessCenter,thesoftballstadium,andthenewIPTAYoffice.WealsobrokegroundfortheSamuelJ.CaddenChapelandachilddevelopmentcenter.

WearecontinuingtomakeprogressunderournewClemsonForwardStrategicPlan.Theplan,endorsedbytheBoardofTrustees,buildsuponthestrongfoundationoftheexisting2020RoadMapandfocusesonenhancingfourprimaryareas—research,theacademiccore,engagement,andliving.Theplanadvancestheuniversity’sland-grantmissionofprovidingapracticalandintellectualeducationandservingasa“highseminaryoflearning”fortheStateofSouthCarolina,asoriginaloutlinedinThomasGreenClemson’swill.Italsoprovidestheflexibilityandforwardthinkingthatwillallowtheuniversitytoevolvetomeettheneedsofthegenerationsthatfollow.

TheprioritiesofClemsonForwardwillbefunded,inpart,bythemoneyraisedthroughprivategifts.PrivategiftstoClemsonUniversityandIPTAYthisfiscalyearsetannualfundraisingrecordsforanotheryear.Infact,thisistheeighthconsecutiveyearthatannualfundraisingatClemsonhasexceeded$100millionandthirdstraightyearittopped$150million.Themoneyraisedwillbenefitstudents,faculty,andstaffforgenerationstocome.

ThankyouforsupportingClemsonUniversityasweworktogetherinthecomingfiscalyear.

Sincerely,

JamesP.Clements,Ph.D.President

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LETTER OF TRANSMITTAL

September27,2019

ToPresidentClements,MembersoftheBoardofTrustees,andCitizensofSouthCarolina

WearepleasedtopresenttoyoutheComprehensiveAnnualFinancialReportofClemsonUniversityfor theyear ended June30, 2019. The report providesfinancial information about theUniversity’soperationsduringtheyearanddescribesitsfinancialpositionattheendoftheyear. Management assumes full responsibility for the completeness and reliability of the informationcontainedinthisreport,baseduponacomprehensiveframeworkofinternalcontrolsthatwasestablishedforthispurpose.Becausethecostofinternalcontrolsshouldnotexceedtheanticipatedbenefits,theobjectiveistoprovidereasonable,ratherthanabsolute,assurancethatthefinancialstatementsarefreeof material misstatements. Statelaw,federalguidelines,andcertainbondcovenantsrequirethattheUniversity’saccountingandfinancialrecordsbeauditedeachyear.ForthefiscalyearendedJune30,2019,theUniversitycontractedwiththeindependentcertifiedpublicaccountingfirmofElliottDavis,LLC,toperformtheUniversity’sannualaudit.Theauditorshaveissuedanunmodifiedopinion,themostfavorableoutcomeoftheauditprocess.Theindependentauditor’sreportislocatedatthefrontofthefinancialsection. Management’sdiscussionandanalysis(MD&A)immediatelyfollowstheindependentauditor’sreportandprovidesanarrativeintroduction,overview,andanalysisofthebasicfinancialstatements.MD&Acomplementsthisletteroftransmittalandshouldbereadinconjunctionwithit.

Profile of the University ClemsonUniversitywas founded in1889, a legacyofThomasGreenClemson,whowilledhisFortHillplantationhome,itssurroundingfarmlandsandforest,andotherpropertytothestateofSouthCarolinatoestablishatechnicalandscientificinstitutionforSouthCarolina.Clemsonopeneditsdoorsto446studentsasamilitarycollegein1893. Today,ClemsonisclassifiedbytheCarnegieFoundationasaResearch/HighUniversity,acategoryattainedbyapproximately4percentofalluniversitiesinAmerica.Studentscanchoosefrommorethan80undergraduateandover110graduatedegreeprogramsinsevencolleges.Asthestate’sland-grantuniversity,Clemsonreachesouttocitizens,communities,andbusinessesalloverSouthCarolinathroughcounty-basedCooperativeExtensionoffices,fiveoff-campusResearchandEducationCenters,andcriticalregulatoryresponsibilitiesforplantandanimalhealth. ClemsonUniversityisgovernedbyaboardofthirteenmembers,includingsevensuccessormembersandsixmemberselectedbytheStateGeneralAssembly.ClemsonUniversityoperatesasaunitoftheStateofSouthCarolina(theprimarygovernment)asastateassistedinstitutionofhighereducation. TheStaterequirestheUniversitytosubmitanannualbalancedbudgetforbothitsEducationalandGeneralandExtensionandPublicServicecomponents.EachrecognizedcollegeorbudgetcenteroftheUniversityisprovidedwithalevelofappropriation.Thisappropriationlimitstotalannualexpenditures.BudgetarycontrolsareincorporatedintoboththeUniversity’saccountingsystemandtheState’sfinancialmanagementsystem toensure that imposedexpenditureconstraintsareobserved. PeriodicfinancialreportscomparingactualresultswithbudgetedamountsareprovidedatboththeUniversityandStatelevel.

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GovernmentalAccounting StandardsBoard (GASB)CodificationSection2100:Defining the Financial Reporting Entity,andSection2600:Reporting Entity and Component Unit Presentation and Disclosure,providescriteriaforwhethercertainorganizationsshouldbereportedascomponentunitsbased on the nature and significance of their relationshipto the related entity. Basedon this criteria, theUniversitydetermined that theClemsonUniversity Foundation, theClemsonUniversity Research Foundation, the ClemsonUniversity Land Stewardship Foundation and IPTAY areindeedcomponentunitsoftheUniversity.Consequently,thefinancialstatementsincludetheaccountsofthesefourentitiesasdiscretelypresentedcomponentunits.

Local Economy SouthCarolina’sunemploymentratewas3.5%attheendofJune–lowerthanthenationalaverageof3.7%and0.3%lowerthanJune2018.TheSouthCarolinaEconomicOutlook,publishedbytheSouthCarolinaDepartmentofCommerce,boastsa51,000increaseofnonfarmjobs,withthemostgrowthinthemanufacturing,professionalandbusinessservices,andconstructionindustries.TheEconomicOutlookalsoreportsa1.2%increaseinstatepersonalincomeanda12.2%increaseintheSouthCarolinastockindex. Whileemploymentandwageshaveimproved,thehousingmarketinSouthCarolinahashadsomefluctuation.Mediansalespriceincreasedby5.5%fromJune2018whileclosings,foreclosures,residentialbuildingspermits,andthevaluationofresidentialbuildingpermitsalldecreasedby5.1%,15.9%,19.3%,and19.6%,respectively,forthesameperiod. For the ninth consecutive year, South Carolina hasreportedrecordexportsales-ranking14thinthenationwith$34.6millioninexportsalesfor2018.The2018InternationalTradeReport,publishedbytheSouthCarolinaDepartmentofCommerce(S.C.Commerce),quotesSecretaryofCommerceBobbyHitt as saying that the state “…will continue toprioritizethegrowthofourinternationaltradefootprintandwillencouragecompaniesofallsizestoexpandtheirreachintonewmarketsoverseas.”Tohelpachievethisgoal,S.C.Commerce has implemented the South Carolina ExportIncentivesprogram,whichreimbursessmallandmedium-sizedbusinessesfortheirparticipationinmajortradeexhibitionsandinternationalmatchmakingandalsofinancesexporttrainingandotherexport-relatedinitiativesbyS.C.Commerce.

Long-Term Financial PlanningTheUniversity’s long-termfinancial plan centers on a

commitmenttotheClemsonForwardPlanwithinvestmentsinkeyareas,including:

l Providing core academic and living investmentsto ensure quality education, programming, studentengagement,andleadership

l Investing in academic programs andworld-classeducators,studentsuccess,retentionandgraduation,andstudentengagement

l Securing state, federal, and private scholarshipopportunitiesforstudents

l Managing state-mandated and inflationary costincreases

l Enhancing safety and securitywith investments inPolice,Fire,EMSinfrastructure,andstaffingaswellasbuildingcontrolandmonitoringsystemstoensureasafelearningcampusenvironment

l ProtectingClemson’sphysicalassetswithastrategiccapitalplan,maintenanceandstewardshipoffacilities,safetyenhancements,andpreventativemaintenance

l Supporting researchandengagement investments torecruit and retain top researchers, grow externallyfunded research, and build aworld-class researchenvironment

TheUniversityplansforinvestmentstotaling$19.7millionin core academic and living environments on campus.Investmentsof$3.8millionwillsupportacademicprogramsandresourcesgearedtowardsstudentsuccess,retentionandgraduation,andstudentengagement.Scholarshipopportunitiesforstudentswillrequire$4.7millionininvestments.State-mandatedandinflationarycostsrelatedtoretirementfunding,regulatory and compliance costs, and rising space andutilitycostsrequire$11.4millionininvestments.Additionalinvestmentstotaling$5.9millionwillsupportcampussecuritymeasures aswell as theUniversity’s facility stewardshipand capital plans to protect physical assets. Investmentsof $2.2millionwill help theUniversity recruit and retainresearchersaswellassupportresearchinitiatives. TheStateLegislaturehasdemonstratedsupportoftheseprioritieswithrenewedinvestmenttosupportacademicandagriculture programs. State appropriations are expected togrowby$17.4millioninthecomingfiscalyear.$5.2millioninrecurringfundingwillbeprovidedforStatewideExtensionprograms,AgricultureandNaturalResourcesresearch,cost-of-livingandretirementincreasesforemployees,andLivestock-PoultryHealth andRegulatory programs.Additionally, theStatehasprovided$12.2innonrecurringfundingforSafetyandSecurity Infrastructure andEnhancements,AdvancedMaterials and STEM equipment, andHealth InnovationExtensionProgramming. TheUniversityissuedGeneralObligationStateInstitutionBonds,totaling$5,635,000,during2019tofundconstructionoftheSnowFamilyOutdoorFitnessandWellnessCenter.

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Major Initiatives Clemsonhas continued to raise the bar in admissions,enrollment, research, facilities development, athletics,graduationandretentionrates,andfundraising. The 2018-19 academic and fiscal yearwas anotherproductive year for Clemson, a reaffirmed Research 1universityby theCarnegieClassification for InstitutionsofHigherEducation.ClemsonwasonceagainrankedintheTop25ofallnationalpublicuniversitiesasannouncedbyU.S.News&WorldReportfortheeleventhconsecutiveyear. PresidentClementswelcomedAnthonyWagner to hisleadershipteamasthenewexecutivevicepresidentforfinanceandoperationsand thesearchbeganforanewdeanof theCollegeofArchitecture,ArtsandHumanities. All university departments and programs continue tomakegreatprogressinfulfillingthevisionandmissionassetforthintheClemsonForwardStrategicPlanwhichfocusesonresearch,engagement,academiccore,andliving,andservestofurtherthevisionofClemsonasaTop20university. PrivategiftstoClemsonUniversityandIPTAYthisfiscalyearsetannualfundraisingrecordsforanotheryear.Infact,thisistheeighthconsecutiveyearthatannualfundraisingatClemsonhasexceeded$100millionandthirdstraightyearittopped$150million–thisyearraisingmorethan$176million.WealsoheldourthirdannualGiveDayduringwhich4,125donorsmadecontributionstotaling$2,087,947. Highlights,newsandmajormilestonesoftheyearinclude:

l GroundbreakingceremonieswereheldfortheSamuelJ.CaddenChapelandtheChildDevelopmentCenter.Additionally, construction iswell underway for theCollegeofBusinessbuilding,thenewsoftballstadiumandtheIPTAYoffice.

l Ribboncuttingswereheldforthenewstudentveterancenter inVickeryHall and theClemsonUniversity/DukeEnergyMobileEngineeringLab.

l ClemsonwelcomedseveralnotablespeakersincludingNobel Prizewinning chemist, Sir Fraser Stoddart;Convocation keynote speaker,ThomasChapman,retiredchairmanandchiefexecutiveofficerofEquifax,Inc.;andtheMartinLutherKingJr.commemorativeservicespeaker,MayaWiley,NBCNewsandMSNBClegalanalyst.

l Clemson hosted the thirdNationalMen of ColorSummit.The two-day event designed to close theachievementgapforAfrican-AmericanandHispanicmales from the cradle to their careerswas attendedby2,000highschoolandcollegestudents,businessprofessionals, educators, government officials andcommunityleadersfromaroundthecountry.

l ClemsonreceivedoursecondExcellenceinDiversityAwardandwasrecognizedasaDiversityChampionbyINSIGHTIntoDiversitymagazineforourprogramsincludingCallMeMISTER,PEER/WISEandTigerAlliance.

tatewide Initiativesl Clemson’s School of Nursing unveiled a new$31.5million education building inGreenville atPrismaHealth-Upstatewhichwill positively impactthehealthcare industrybyproducingmorequalifiednurses.

l Clemson University and GE pushed advancedmanufacturingforwardatGE’sadditivemanufacturinglaboratoryinGreenville.

l ClemsonandArthrex Inc. launchedapilotprogramto support students and thegrowing surgicaldeviceindustry.

l ClemsonandSouthCarolinaStateUniversitypartneredto provide STEMeducation to at-risk youth.Bothuniversities receivedafive-year$1.28milliongrantfromtheU.S.DepartmentofAgriculture.

l InFebruary,ClemsonDayattheStateHousewasheldinColumbia.Theeventservedasawaytosay“thankyou”tothemembersoftheGeneralAssemblyfortheirsupport,butalsoallowedthecontingentfromClemsontohighlightbudgetprioritiesforClemson.

l ClemsonUniversityenvironmentaleconomicsexpertsmetwithstateofficialsandotherstakeholderstodiscussbringingasystemtoSouthCarolinathatpaysfarmersand landowners to help conserve natural resources.ThePayments forEcosystemServiceswill first beimplementedintheSanteeRiverbasin.

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Awards and Acknowledgements TheGovernment FinanceOfficersAssociation of theUnited States andCanada (GFOA) awarded aCertificateofAchievement forExcellence in FinancialReporting toClemsonUniversity for its comprehensive annualfinancialreportforthefiscalyearendedJune30,2018.TheCertificateofAchievementisaprestigiousnationalawardrecognizingconformancewiththehigheststandardsforpreparationofstateandlocalgovernmentfinancialreports. InordertobeawardedaCertificateofAchievement,agovernmentunitmustpublishaneasilyreadableandefficientlyorganized comprehensive annual financial report (CAFR),whosecontentsconformtoprogramstandards.SuchaCAFRmustsatisfybothgenerallyacceptedaccountingprinciplesandapplicablelegalrequirements. A Certificate ofAchievement is valid for a periodof one year only. ClemsonUniversity has received theCertificate ofAchievement annually since the fiscal yearendedJune30,1993.Webelieveourcurrentreportcontinuesto conform to the Certificate ofAchievement programrequirements,andwearesubmittingittotheGFOA. ThepreparationoftheComprehensiveAnnualFinancialReport in a timelymannerwould not have been possiblewithoutthecoordinatedeffortsoftheComptroller’sOfficeandotherUniversityfinancialstaff.Eachmemberhasoursincereappreciationfortheircontributionsinthepreparationofthereport.

Sincerely,

AnthonyE.WagnerExecutive Vice President for Finance and Operations

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CLEMSON UNIVERSITYBOARD OF TRUSTEES(asofJune30,2019)

TRUSTEES

E.SmythMcKissick,III,ChairmanCEO,AliceManufacturingCompany,Inc.

Ronald(Ronnie)D.Lee,Vice ChairmanRonaldD.Lee,DMD,P.C.

DavidE.DukesPartner,NelsonMullinsRiley&ScarboroughLLP

LouisB.LynnPresident,ENVIROAgScience,Inc.

Patricia(Patti)H.McAbeeVicePresident,CustomDevelopmentSolutions

JohnN.(Nicky)McCarter,Jr.President,DefenderServices,Inc.

Robert(Bob)L.PeelerManager,CommunityandMunicipalRelationsWaste Management Inc. CheriM.PhyferPresidentandGeneralManager,DiversiefiedBrandsTheSherwin-WilliamsCompany

MarkS.RichardsonOwner,MARRealEstate,LLC

William(Bill)C.Smith,Jr.CEO,RedRockDevelopments

Joseph(Joe)D.SwannPresident,RetiredRockwellAutomationPowerSystems

KimWilkersonPresident,SouthCarolinaBankofAmerica

DavidH.WilkinsPartner,NelsonMullinsRiley&ScarboroughLLP

TRUSTEE EMERITI

LouisP.Batson,Jr.Chairman,RetiredLouisP.BatsonCompany

J.J.BrittonSumterFamilyHealthCenter

FletcherC.Derrick,Jr.Urologist

Leon(Bill)J.Hendrix,Jr.Chairman,RetiredRemingtonArmsCompany

HaroldD.(Doug)KingsmoreChairmanoftheBoard,SouthernWeavingCompany

Thomas(Tom)B.McTeer,Jr.President,McTeerRealEstate,Inc.

AllenWoodRetiredMosley,Wilkins,WoodAssociates,Ltd.

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CLEMSON UNIVERSITY BOARD OF TRUSTEES

EXECUTIVE SECRETARYTO THE BOARD

Angela LeidingerPRESIDENT

James Clements

EXECUTIVE VICE PRESIDENTOF ACADEMIC AFFAIRS AND PROVOST

Robert Jones

CLEMSON UNIVERSITYORGANIZATION CHART

ATHLETIC DIRECTORDaniel Radakovich

EXECUTIVE VICE PRESIDENTFOR FINANCE AND OPERATIONS

Anthony E. Wagner

DIRECTORINTERNAL

AUDITCathy Howe

CHIEF FINANCIAL

OFFICERSteven Crump

CHIEF HUMAN RESOURCES OFFICER

Emily Watrous

VICE PRESIDENTUNIVERSITY RELATIONS

Mark Land

VICE PRESIDENT FOREXTERNAL AFFAIRS

Angela Leidinger

VICE PRESIDENT FOR PUBLIC SERVICE AND AGRICULTURE

George Askew

CHIEF INFORMATION

OFFICERussell Kaurloto

VICE PRESIDENTFOR RESEARCHTanju Karanfil

VICE PRESIDENTFOR STUDENT AFFAIRS

Almeda Jacks

VICE PRESIDENTDEVELOPMENT AND ALUMNI RELATIONS

Brian O’Rourke

CHIEF INCLUSION ANDEQUITY OFFICER

Lee Gill

ASSISTANT VICE PRESIDENTACCESS AND EQUITY

Lewis Knighton, Jr.

CHIEF OF STAFFMaxwell Allen

GENERAL COUNSELChip Hood Jr.

Financial Section

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Independent Auditor’s Report

Members of the Board of Trustees Clemson University Clemson, South Carolina

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities and the aggregate discretely presented component units of Clemson University (the University), a component unit of the State of South Carolina, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the University's 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 opinions on these financial statements based on our audit. We did not audit the financial statements of the Clemson University Foundation (a discretely presented component unit), the Clemson University Land Stewardship Foundation (a discretely presented component unit), and IPTAY (a discretely presented component unit). The Clemson University Foundation, the Clemson University Land Stewardship Foundation, and IPTAY represent 100% of total assets, 100% of net assets or position, and 100% of total revenues of the discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for these discretely presented components units, are based solely on the reports of the other auditors. 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. The financial statements of the Clemson University Foundation, the Clemson University Land Stewardship Foundation and IPTAY were not audited in accordance with Government Auditing Standards, issued by the Comptroller General of the United States.

elliottdavis.com

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Auditor's Responsibility

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 opinions.

Opinions

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of the University as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 22-29, Schedule of University’s Proportionate Share of Net Pension Liability on page 71, Schedule of University Contributions to Pension Plans on page 72, Schedule of University’s Proportionate Share of Net Retiree Health Benefits Liability on page 73, and Schedule of University Contributions to Retiree Health Benefits Plan on page 74 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 response 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 audit evidence to express an opinion or provide any assurance.

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Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the University’s basic financial statements. The Introductory Section, Statistical Section, Schedule of Pledged Net Revenues – Auxiliary Revenue Bonds (Series 2005, 2015 and 2015B), Schedule of Pledged Net Revenues – Athletic Facilities Revenue Bonds (Series 2012, 2014A, 2014B, 2014C, 2015, 2015B and 2018A), Clemson University Reporting Entity – Combined Statement of Net/Financial Position, and Clemson University Reporting Entity – Combined Statement of Revenues, Expenses, Activities and Changes in Net Position, as listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 27, 2019 on our consideration of the University's 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 the University's internal control over financial reporting and compliance.

Greenville, South Carolina September 27, 2019

UNAUDITED

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MANAGEMENT’S DISCUSSION AND ANALYSIS

Overview of the Financial Statements and Financial Analysis ClemsonUniversity is pleased to present its financialstatements for fiscal year 2019. While audited financialstatements forfiscal year 2018 are not presentedwith thisreport,condensedoperationsandfinancialpositiondatawillbepresentedinthissectioninordertoillustratecertainincreasesanddecreases.However,theemphasisofdiscussionsaboutthesestatementswillbeoncurrentyeardata. There are three financial statements presented: theStatement of Net Position; the Statement of Revenues,ExpensesandChangesinNetPosition;and,theStatementofCashFlows.Thesestatementspresentfinancialinformationinaformatsimilartothatusedbyprivatecorporations. ThisdiscussionandanalysisoftheUniversity’sfinancialstatementsprovidesanoverviewofitsfinancialactivitiesfortheyear.

Statement of Revenues, Expenses and Changes in Net Position TheStatementofRevenues,ExpensesandChangesinNetPositionpresentstherevenuesearnedandexpensesincurredduringtheyear.Activitiesarereportedaseitheroperatingornonoperating.Allthingsbeingequal,apublicUniversity’sdependency on state aid and giftswill result in operatingdeficits. TheGASBrequires stateappropriationsandgiftstobeclassifiedasnonoperatingrevenues.Theutilizationoflong-livedassets,referredtoasCapitalAssets,isreflectedinthefinancialstatementsasdepreciation,whichamortizesthecostofanassetoveritsexpectedusefullife. ChangesintotalnetpositionaspresentedontheStatementofNet Position is based on the activity presented in theStatementofRevenues,Expenses,andChangesinNetPosition.Thepurposeofthestatementistopresenttherevenuesreceivedbytheinstitution,bothoperatingandnonoperating,andtheexpensespaidbytheinstitution,operatingandnonoperating,andanyotherrevenues,expenses,gainsandlossesreceivedorspentbytheinstitution. Generallyspeaking,operatingrevenuesarereceivedforprovidinggoodsand services to thevariouscustomersandconstituenciesoftheinstitution.Operatingexpensesarethoseexpensespaidtoacquireorproducethegoodsandservicesprovided in return for theoperating revenues, and to carryout themission of the institution. Nonoperating revenuesarerevenuesreceivedforwhichgoodsandservicesarenotprovided. State capital appropriations and capital grantsandgiftsareconsideredneitheroperatingnornonoperatingrevenuesandarereportedafter“Incomebeforeotherrevenues,expenses,gainsorlosses.” TheCondensedStatement ofRevenues,Expenses andChangesinNetPositionreflectsapositiveyearwithanincreaseinNetPositionattheendoftheyear.SomehighlightsoftheinformationpresentedonthisStatementareasfollows:

Total Revenues – increase of $111.7 millionl Operatingrevenuesincreased$75.9million,basedonthefollowing: Student tuition and fees increased$27.5million, the

resultofaBoardapprovedincreaseof1.75percentforin-statestudents,3percentfornonresidentstudents,andnewacademicprogramfeesforcertainmajors.Growthinprofessional,graduate,online,anddistanceeducationalsocontributedtotheincrease.

Sales and services revenues increased$28.4million.Sales and services of pledged auxiliaries increased$25.5million.Athleticrevenueincreased$6.5million,primarilyduetoticketsales.TheopeningofDouthitHills,movingBridgestudentstocampus,andmodestincreases in housing and dining rates resulted inincreasesof$14.3millioninhousingrevenueand$4.9millionindiningrevenue.Non-pledgedauxiliarysalesandservices increased$2.5million. Thisrevenue isgenerated from Information SystemsDevelopmentcontractualcommitmentswiththeDepartmentofHealthandHumanServices.Salesandservicesofeducationalactivities increased $400,000, primarily due to anincreaseinYouthLearningInstitutecamprevenues.

Grantsandcontractsrevenuesincreased$18million.Revenuesfromfederalgrantsandcontractsincreased$6.9million. Grants from the National ScienceFoundation,DepartmentofHealthandHumanServices,and federal scholarship programs contributed to theincrease.Stategrantsandcontractsrevenueincreased$10million. Allocated revenue from the PublicEmployeeBenefitAuthority related to pension andretiree health plans increased $4.4million. LotteryfundedPalmettoFellows,Life,andHopescholarshipsincreasedby$3million.Statefundedresearchgrantsincreasedby$2.6million.Aslightincreaseincountyprogramfundsledtoanincreaseof$191,000inlocalgrants.Nongovernmentalgrantsandcontractsincreased$843,000 due to an increase in grants fromprivatefoundations.

Other operating revenues increased $2 million.Increases in study abroad fees, student health fees,contractincomeforpostaloperations,andregistrationrevenueforvariousUniversityprogramscontributedtotheincrease.

l Nonoperatingrevenuesincreased$35.8million,basedonthefollowing: State appropriations increased$12.6million. Base

appropriations for Educational&General (E&G)activitiesincreased$3.8million.Baseappropriationsfor Public ServiceActivities (PSA) increased $2.9million.Allocationsforhealth,dental,andretirementincreased$552,000.OnetimeappropriationsforSTEMandAdvancedMaterialsequipmenttotaled$5.3million.

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Federalappropriationsdecreased$93,000.AnincreaseinfederalgovernmentfundingfortheUniversity’sland-grantMcIntireStennisandHatchprogramswereoffsetbyadecreaseinSmithLeverappropriations.

Giftsandgrantsincreased$9.8millionastheresultofIPTAYgiftsforqualifyingscholarshipsandoperatingexpenses. Investmentincomeincreased$9.8million.EarningsoncashbalancesheldbytheStateTreasurer’sOfficeincreased$15.7

million.Endowmentincomedecreased$5.9millionduetounrealizedlossesoninvestedendowmentbalances. Othernonoperatingrevenuesincreased$2.5millionduetocontinuedsettlementpaymentsreceivedfromacontractorfor

workperformedatDouthitHillsandinsuranceproceedsforthefireattheSnowFamilyOutdoorFitnessandWellnessCenter.

Proceedsfromthesaleofcapitalassetsincreased$1.1millionduetosignificantsurplussalesproceeds.

Condensed Summary of Net Revenues, Expensesand Changes in Net Position (thousands of dollars)

Description 2019 2018Increase/Decrease

Percent Change

Revenues:Student tuition and fees, net $ 425,219 $ 397,740 $27,479 6.91%Sales and services, net 212,271 183,860 28,411 15.45%Grants and contracts 182,259 164,237 18,022 10.97%Other operating revenues 40,605 38,648 1,957 5.06% Total operating revenues 860,354 784,485 75,869 9.67%State appropriations 136,487 123,914 12,573 10.15%Federal appropriations 11,115 11,208 (93) (0.83)%Gifts and grants 94,905 85,056 9,849 11.58%Investment income 27,909 18,066 9,843 54.48%Other nonoperating revenues 4,665 2,150 2,515 116.98%Proceeds from the sale of capital assets 1,283 189 1,094 578.84%

Total nonoperating revenues 276,364 240,583 35,781 14.87%Total revenues 1,136,718 1,025,068 111,650 10.89%

Expenses:Compensation and employee benefits 632,151 617,355 14,796 2.40%Services and supplies 319,566 278,228 41,338 14.86%Utilities 20,548 20,593 (45) (0.22)%Depreciation 59,346 57,491 1,855 3.23%Scholarships and fellowships 33,579 30,668 2,911 9.49% Total operating expenses 1,065,190 1,004,335 60,855 6.06%Interest on capital asset related debt 23,416 22,056 1,360 6.17%Loss on disposal of capital assets 1,540 826 714 86.44%Refunds to grantors 499 90 409 454.44%Facilities and administrative remittances to the State 280 252 28 11.11%

Total nonoperating expenses 25,735 23,224 2,511 10.81%Total expenses 1,090,925 1,027,559 63,366 6.17%

Income before other revenues, expenses, gains or losses 45,793 (2,491) 48,284 1938.34%

State capital apppropriations 9,850 — 9,850 100.00%Capital grants and gifts 24,094 17,561 6,533 37.20%Additions to permanent endowments 38 101 (63) (62.38)% Change in net position 79,775 15,171 64,604 425.84%

Net position, beginning of year as originally stated 220,239 783,114 (562,875) (71.88)% Cumulative effect of accounting changes — (578,046) 578,046 100.00%

Net position, ending $ 300,014 $ 220,239 $ 79,775 36.22%

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Total Revenues$1,136,718 (thousands of dollars)

Student Tuition and Fees $425,219

Federal Grantsand Contracts

$90,469

State Grants and Contracts $78,533

Local and Nongovernmental Grants and Contracts - $13,257

Sales and Services of Educational and Other Activities - $22,587

Sales and Services of Auxiliary Enterprises

$189,684

Other OperatingRevenues

$40,605

State Appropriations $136,487

Federal Appropriations $11,115

Gifts and Grants$94,905

Interest Income and Endowment Income

$27,909

Non Operating Revenues and Sale of Capital Assets - $5,948

NONOPERATING$276,364

Total Expenses – increase of $63.4 millionl Operatingexpensesincreased$60.9million,basedonthefollowing: Compensationandemployeebenefitsincreased$14.8

million.Fringebenefitexpensesincreased$16.6milliondue to statemandatedhealth, dental, and retirementbenefitcost increases. Graduateassistantandotherstudent related compensation increased$4.4million.PensionandretireehealthbenefitexpensesrelatedtotheamortizationoftheUniversity’sproportionateshareofthestate’snetpensionliabilityandnetretireehealthbenefitliabilitydecreasedby$5.5million.

Servicesandsuppliesexpensesincreased$41.3million.Instruction costs related to the School ofNursing’scollaborationwithPrismaHealth,distanceeducationandrelatedinformationtechnologycostsincreased$4.2million. Research costs increased$6.8millionovertheprioryearrelatedtofederalandprivatesponsoredresearchprojects.Public servicecosts related to4-Hprogramsandbeefanddairyfarmcostsincreased$1.3million.Academicsupportcostsincreased$17.2millionrelatedtothereallocationofcostrecoveriesrelatedtocontractualcommitmentswiththeDepartmentofHealthandHumanServices.Theoffsetofthisreclassificationis reflected in compensation and benefits. StudentServiceexpensesincreased$2.1millionandincludedfitnessequipmentforDouthitHills,anupgradeoftheBanner student system, and increased student healthcentercosts.Theinstitutionalsupportincreaseof$1.5million is the result of IT systems initiatives, costsrelatedtorelocationofstafftooffcampusleasedofficespace, andHumanResources recruiting initiatives.Operation andmaintenance of plant costs related to

non-capitalizedrepairsandrenovationsdecreased$7.5million. ScholarshipandFellowshipcosts increased$88,000. Auxiliary services costs increased $15.5million.IncreasedAthleticcostsrelatedtopost-seasonplay,increasedfoodserviceandhousingcosts,andanincreaseinthecampusshuttlecontractcontributedtotheincrease.

Utilityexpensesdecreased$45,000.Increasedpowercostswereoffsetbyreductionsintelecommunicationexpenses.

Depreciation expense increased $1.9million as theresultofthecapitalizationofmajorconstructionprojectsincludingDouthitHills.

Scholarshipand fellowshipexpenses increased$2.9millionduetoincreasesinstatefundedLife,Hope,andPalmettoFellowsprogramsandfederalPellandSEOGscholarships.

l Nonoperatingexpensesincreased$2.5millionbasedonthefollowing: Interest expense increased$1.4million. A full year

of interestwasdueonState Institutionbonddebtof$120,885,000 andAthletic FacilitiesRevenue bonddebtof$11,300,000issuedintheprioryear.AdditionalStateInstitutionBondsof$5,635,000wereissuedinthecurrentyear.

Lossesondisposalofcapitalassetsincreased$714,000.ContributingfactorsincludethedemolitionoftheSloanTennisCenterandsurplusequipmentsoldatauction.

Refunds tograntors increased$409,000due tofixedpaymentamountsthathadtobereturnedtosponsorswhenthecostofworkperformedwaslessthanamountspreviouslyreceived.

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Total Expenses by Function$1,090,925 (thousands of dollars)

Instruction$283,898

Research$184,301

Public Service$73,932

AcademicSupport$67,447

Student Services$48,969

Institutional Support$52,493

Operation and Maintenance of Plant

$71,087

Scholarships and Fellowships$31,306

Auxiliary Enterprises$ 192,410

Depreciation$59,346

Interest on Capital Asset Related Debt

$23,416

Loss on Disposal of Capital Assets

$1,541

Refunds to Grantors

$499Facilities and Administrative

Remittances to the State - $280

NONOPERATINGEXPENSES

$25,735

Facilities and administrative costs remitted to theStateincreased$28,000.TheStaterequiressuchcostscollectedfornon-researchsponsoredprojectsinexcessof$200,000toberemitted.

l TheStatecapitalappropriationsincreaseof$9.8millionwasattributableto$6.8millioninlotteryfundsreceivedfortheGarrisonArenaconstructionand$3millionincapitalreservefundingforinfrastructureandrenovationoftheResearchEducationCenter.

l Capital grants and gifts increased $6.5million. Privatecontributionstotaling$4millionwerereceivedtofundtheconstructionofachapeloncampus. Additional receiptsincludedsignificantgiftstoinvestinequipmentforfederalsponsoredprojects.

l The$63,000decreaseinadditionstopermanentendowmentswastheresultofprivatedonorgiftsintheprioryear.

Compensation and Employee Benefits

$632,151

Utilities$20,548

Depreciation $59,346

Scholarships and Fellowships$33,579

Services and Supplies$319,566 Interest on Capital

Asset Related Debt$23,416

Loss on Disposal of Capital Assets

$1,540

Refunds to Grantors -

$499Facilities and Administrative

Remittances to the State - $280

NONOPERATING EXPENSES

$25,735

Total Expenses by Natural Classification$1,090,925 (thousands of dollars)

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Statement of Net Position The Statement of Net Position presents the assets,deferredoutflowsof resources, liabilities, deferred inflowsofresources,andnetpositionoftheUniversityasoftheendofthefiscalyear.TheStatementofNetPositionisapointoftimefinancialstatement.ThepurposeoftheStatementofNetPositionistopresenttothereadersofthefinancialstatementsafiscalsnapshotofClemsonUniversity.TheStatementofNetPositionpresentsend-of-yeardataconcerningAssets(propertythatwe own andwhatwe are owed by others),DeferredOutflowsofResources(consumptionofnetpositionbytheUniversity that is applicable to a future reporting period),Liabilities(whatweowetoothersandhavecollectedfromothersbeforewehaveprovidedtheservice),DeferredInflowsofResources(acquisitionofnetpositionbytheUniversitythatisapplicabletoafuturereportingperiod),andNetPosition(AssetsandDeferredOutflowsofResources,minusLiabilitiesandDeferredInflowsofResources).Itispreparedundertheaccrualbasisof accounting,where revenues andassets arerecognizedwhen the service is provided and expenses andliabilitiesarerecognizedwhenothersprovidetheservicetous,regardlessofwhencashisexchanged. From the data presented, readers of the Statement ofNet Position are able to determine the assets available tocontinue the operations of the institution. They are alsoable to determinehowmuch the institutionowes vendors,investors,andlendinginstitutions.Finally,theStatementofNetPositionprovidesapictureofthenetposition(assetsanddeferredoutflowsofresourcesminusliabilitiesanddeferredinflowsofresources)andtheiravailabilityforexpenditurebytheinstitution.

Netpositionisdividedintothreemajorcategories.Thefirstcategory,net investment incapitalassets,provides theinstitution’sequityinproperty,plant,andequipmentownedbytheinstitution.Thenextcategoryisrestrictednetposition,which is divided into two categories, nonexpendable andexpendable.RestrictednonexpendablenetpositionconsistssolelyoftheUniversity’spermanentendowmentfundsandisonlyavailableforinvestmentpurposes.Expendablerestrictednetpositionisavailableforexpenditurebytheinstitutionbutmustbespentforpurposesasdeterminedbydonorsand/orexternalentitiesthathaveplacedtimeorpurposerestrictionsontheuseoftheassets.Thefinalcategoryisunrestrictednetposition.Unrestrictednetpositionisavailabletotheinstitutionforanylawfulpurposeoftheinstitution.Althoughunrestrictednetpositionisnotsubjecttoexternallyimposedstipulations,substantiallyalloftheUniversity’sunrestrictednetpositionhasbeendesignatedforvariousacademicandresearchprogramsandinitiatives.

Assets and Deferred Outflows of Resources– increase of $121.5 millionl Current assets increased $33.8million. Unrestrictedcashbalancesincreased$42.1millionandrestrictedcashdecreased$25.7million.Theunrestrictedcashincreasewasdrivenbyanincreaseinstudentfeecollections,maintenance,repairs, and renovation funding, and an increase ininvestmentincomeearnings.RestrictedcashdecreasedasaresultofspendingofRevenueandAthleticFacilitiesBondsissuedintheprioryear.Accountsreceivableincreased$9.9millionasaresultofcorporatesponsorshipandlicensingrevenue not receivedprior to the endof thefiscal year.

Condensed Summary of Net Position (thousands of dollars)

Description 2019 2018 Increase/(Decrease)

PercentChange

Assets Current assets 643,989 $ 610,158 $ 33,831 5.54% Capital assets, net 1,401,595 1,335,129 66,466 4.98% Other noncurrent assets 223,022 217,345 5,677 2.61%Total assets 2,268,606 2,162,632 105,974 4.90%

Deferred outflows of resources 145,750 130,258 15,492 11.89%

Total assets and deferred outflows of resources 2,414,356 2,292,890 121,466 5.30%

Liabilities Current liabilities 162,886 155,774 7,112 4.57% Noncurrent liabilities 1,899,152 1,863,090 36,062 1.94%Total liabilities 2,062,038 2,018,864 43,174 2.14%

Deferred inflows of resources 52,304 53,787 (1,483) (2.76)%

Total liabilities and deferred inflows of resources 2,114,342 2,072,651 41,691 2.01%

Net Position Net investment in capital assets 814,368 789,141 25,227 3.20% Restricted - nonexpendable 58,979 59,002 (23) (0.04)% Restricted - expendable 183,297 150,070 33,227 22.14% Unrestricted (756,630) (777,974) 21,344 (2.74)%Total net position $ 300,014 $ 220,239 $ 79,775 36.22%

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Grantsandcontractsreceivableincreased$1.9millionduetoreceivablesforgrantsandcontractsonsponsoredprojects.Contributionsreceivableincreased$534,000.Anincreaseinpledgesof$2millionwasoffsetbythepaymentofexistingpledges.InterestincomereceivableoncashbalancesheldbytheStateTreasurer’sOfficeincreased$623,000.Inventoriesdecreased$94,000.Increasesincomputerstoreinventorywereoffsetbydecreasesintelecommunicationsuppliesandbluecheeseinventory.Prepaiditemsincreased$276,000primarily due to IT license andmaintenance agreementpayments.Othercurrentassetsincreased$4.3millionasaresultofanunder-recoveryofpooledfringesforthefiscalyearendingJune30,2018thatwillbeabsorbedthroughtheapprovedpooledfringerateestablishedforthefiscalyearendingJune30,2020.

l Netcapitalassetsincreased$66.5million.Non-depreciableassetsdecreased$170.5millionasconstructionwasfinalizedonmajor campus projects includingDouthitHills andtheTennisCenter. Depreciable capital assets increased$237million.Anincreaseof$209.6millioninbuildingswasdrivenbythecapitalizationofDouthitHillsandtheTennisCenter. Multiple parking lot expansions, sewerinfrastructure projects, and construction of a newwatertower resulted in an increase of $27million in utilitiesand other non-structural improvements.The decrease insoftware of $1.2millionwas driven by depreciation ofcurrentsoftwareassets.Equipmentincreased$1.7million.Additionstotaling$24.7millionwereoffsetbydisposalsanddepreciationexpense.Vehiclesdecreased$386,000asaresultofdepreciationexpenseanddisposalsortrade-insofpreviouslyowneddepartmentalvehicles.

l Othernoncurrentassetsincreased$5.7million.Thebalanceon loan to theClemsonUniversity Foundation (CUF)increased$8million. Transfers fromCUF totaling$3.5millionwereoffsetbyappreciation,income,andrealizedgains. Noncurrent contributions receivable increased$369,000.Anincreaseinpledgesof$2millionwasoffsetbythepaymentofexistingpledges.Investmentsincreased$25,000. Restricted noncurrent cash balances increased$1.3millionasaresultoftheallocationofendowmentcashbalances to funddeficits in endowment spending funds.Student loans receivable decreased $1.2million due tocollectionsofPerkinsFederalstudentloans.Otherassetsdecreased$2.8millionduetotheunder-recoveryofpooledfringebenefitcoststhatwillbeabsorbed/adjustedthroughtheapprovedpooledfringerateestablishedfor thefiscalyearendingJune30,2021.

l Deferred outflows of resources increased $15.5million.Deferredlossesonbondrefundingsdecreased$451,000duetoamortizationofexistinglosses.Deferredoutflowsrelatedto theUniversity’s proportionate share of the state’s netpensionliabilitydecreased$2.3million.DeferredoutflowsrelatedtotheUniversity’sproportionateshareofthestate’sretireehealthbenefitsliabilityincreased$18.2million.

Liabilities and Deferred Inflows of Resources – increase of $41.7 millionl Currentliabilitiesincreased$7.1million.Thedecreaseinaccountspayableof$2.7millionwaslargelyattributabletoamountsdueattheendofthepriorfiscalyearforcapitalprojects includingDouthitHills and theTennisCenter.Accruedpayrollandrelatedliabilitiesincreased$2millionastheresultofincreasedsalariesandfringebenefitsappliedtothefinalpayrollofthefiscalyear.Currentcompensatedabsencesincreased$615,000,alsotheresultofincreasedsalaries.Accruedinterestpayabledecreased$170,000duetothepaydownofexistingdebt.Theincreaseinunearnedrevenuesof$7.6millionwasattributabletoticketsalesfortheupcomingfootballseason,deferredstudentpaymentsforthesummersemester,andgrantsandcontractsfundingreceivedinadvanceofexpenditures.Theincreasesinthecurrent portion of long-term debt totaling $1.5millionresultedfromthe issuanceofState Institutionbonds thisyear.Current deposits decreased $1.8million due to adecrease in amounts held for awaygame football ticketsales at year-end. The currentportionof fundsheld forothersincreased$75,000duetoanincreaseinagencyfundbalances.

l Noncurrent liabilities increased by $36.1million. TheUniversity’sproportionateshareofthenetpensionliabilityincreasedby$21.6million.TheUniversity’sproportionateshare of the state’s liability for retiree health benefitsincreasedby$31million.Netinvestmentincomeandplancontributionswerenotsubstantialenoughtooffsettheplan’sbenefitpaymentsandadministrativecosts,resultinginanincreasetotheplans’overallnetliability.Long-termdebtdecreased$18.2million.TheissuanceofStateInstitutionbondsthisfiscalyearwasoffsetbythepaydownofexistingdebt.Thelong-termliabilityforcompensatedabsencesandrelatedliabilitiesincreased$1.6million.Thenoncurrentportionof fundsheld for others related toPerkins loansdecreased$81,000.

l Deferred inflows of resources decreased $1.5million.DeferredinflowsofresourcesrelatedtotheUniversity’snetpensionliabilityincreasedby$3.1million.TheUniversity’sproportionateshareofnetretireehealthbenefitsdecreasedby $4.6million. Deferred inflowsof resources includethe calculated difference between actual and projectedinvestmentearningsonthestate’spensionandretireehealthbenefitplans.

Net Position – increase of $79.8 millionl Net investmentofcapitalassets increased$25.2million.Thisincreaseresultedfromanincreaseincapitalassetsof$66.5million,adecreaseincapitaldebtof$16.7million,adecreaseinunspentbondproceedsof$57.5million,anda$451,000 increase indeferredoutflowsof resourcesasdiscussedabove.

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l Restricted–nonexpendablenetpositionforscholarshipsandfellowshipsdecreased$23,000astheresultofinvestmentlossesonendowmentbalancesheldbyWellsFargo.

l Restrictedforexpendablenetpositionincreased$33.2million,basedonthefollowing: Restricted–expendablenetpositionforscholarshipsandfellowshipsincreased$4.6millionduetoanincreaseingifts

andpledgedscholarshipfundingandanincreaseininvestmentearningsonfundsheldbytheStateTreasurer’sOffice. Restricted–expendablenetpositionforresearchdecreased$169,000resultingprimarilyfromSponsoredProgramresearch

projects. Restricted–expendablenetpositionforinstructional/departmentalusedecreased$917,000duetothefundingforamobile

medicalunitintheprioryearandadecreaseincontributions. Restricted–expendablenetpositionforstudentloansincreased$83,000astheresultofaslightincreaseinClemson

studentloansandinvestmentincomeearnings. Restricted–expendablenetpositionforcapitalprojectsincreased$27.6millionresulting,inlargepart,fromanincrease

inoperating transfers to thehousing,dining, andathletic improvement funds, increases inmaintenance stewardshipfunding,andcapitalappropriationsforGarrisonArena.

Restricted–expendablenetposition fordebt service increased$2millionas the resultofdebt service reserve fundrequirementsforRevenueandStateInstitutionbonddebt.

l Unrestrictednetpositionincreased$21.3million,basedonthefollowing: TheUniversity’s proportionate share of the state’s net pension liability and net retiree health benefit liability and

accompanyingdeferredinflowsandoutflowsofresourcesresultedina$32.2millionreductionofunrestrictednetposition. Unrestricted - educational andgeneral increased$29.6million as the result of increased student fee revenues, state

appropriations,andinvestmentincomeearnings. Unrestricted–unexpendedplantincreased$14milllionastheresultoftransfersforfacilitiesplannedmaintenanceprojects

andinvestmentincomeearnings. Unrestricted–boarddesignatedendowmentsincreased$5millionastheresultofanincreaseinendowmentgiftsand

investmentincomeearnings. Unrestricted–publicservicesnetpositionincreased$1.8million. Unrestricted–auxiliariesnetpositionincreased$3.1million.Increasedrevenuesinathletics,housing,anddiningwere

offsetbytransferstorespectivecapitalimprovementfunds.

Statement of Cash Flows ThefinalstatementpresentedistheStatementofCashFlows.TheStatementofCashFlowspresentsdetailedinformationaboutthecashactivityoftheinstitutionduringtheyear.Thestatementisdividedintofiveparts.Thefirstpartdealswithoperatingcashflowsandshowsthenetcashusedbytheoperatingactivitiesoftheinstitution.Thesecondsectionreflectscashflowsfromnoncapitalfinancingactivities.Thissectionreflectsthecashreceivedandspentfornonoperating,noninvesting,andnoncapitalfinancingpurposes.Thethirdsectiondealswithcashflowsfromcapitalandrelatedfinancingactivities.Thissectiondealswiththecashusedfortheacquisitionandconstructionofcapitalandrelateditems.Thefourthsectionreflectsthecashflowsfrominvestingactivitiesandshowsthepurchases,proceeds,andinterestreceivedfrominvestingactivities.ThefifthsectionreconcilesthenetcashusedtotheoperatingincomeorlossreflectedontheStatementofRevenues,ExpensesandChangesinNetPosition.

Capital Assets Capitalassets,netofaccumulateddepreciation,atJune30,2019andJune30,2018wereasfollows:

Capital Assets (net of accumulated depreciation)

Description 2019 2018Increase/Decrease

PercentChange

Capital Assets:Land and improvements 34,372,728 $ 34,276,726 $ 96,002 0.28%Construction in progress 109,126,867 279,696,208 (170,569,341) (60.98)%Utilities systems and other non-structural

improvements 67,696,972 40,564,714 27,132,258 66.89%Buildings and improvements 1,058,023,659 848,374,367 209,649,292 24.71%Computer software 11,514 1,206,472 (1,194,958) (99.05)%Equipment 126,800,853 125,061,906 1,738,947 1.39%Vehicles 5,562,510 5,948,883 (386,373) (6.49)%

Total Capital Assets $ 1,401,595,103 $ 1,335,129,276 $ 66,465,827 4.98%

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Landincreased$96,000.Atotalof3.23acresadjoiningtheCoastalResearchandEducationCenterinCharlestonwaspurchasedforapproximately$110,000.Atotalof0.163acresinRichlandCountywassoldtotheSouthCarolinaDepartmentofTransportationforapproximately$14,000. The$170.6milliondecreaseinnon-depreciablecapitalassetswas attributable to a decrease in Construction inProgress.ConstructionendedonmajorUniversityprojects,includingDouthitHillsandtheTennisCenter. UtilitiesSystemsandOtherNon-StructuralImprovementsincreasedapproximately$27.1million.Sewerinfrastructureprojects,anewwatertower,aswellasparkinglotexpansionprojectswere offset by depreciation expense on new andexistingassets. Buildingsincreased$209.6millionduetothecapitalizationof severalmajor projects, includingDouthitHills and theTennisCenter. CapitalizedComputerSoftwaredecreased$1.2millionasaresultofdepreciationonexistingsoftware. Equipmentincreased$1.7million.Netadditionstotalingapproximately$24.7millionwereoffsetbydepreciationanddisposals. Vehiclesdecreased$386,000asaresultofdepreciationexpense and disposals or trade-ins of previously owneddepartmentalvehicles. Formoredetailedinformationoncapitalassetactivity,please refer toNote4–CapitalAssets in theNotes to theFinancialStatements.

Debt AdministrationTheUniversity’sfinancialstatementsindicate$664,696,457inbondspayableand$11,687,905incapitalleasespayableatJune30,2019. TheUniversity’s bonded indebtedness consisted of:GeneralObligationBondsof$232,262,012,AthleticFacilitiesRevenueBond issues totaling $139,539,389, andRevenueBonds of $292,895,056. GeneralObligationBonds areobligationsoftheStateofSouthCarolinaandaresecuredastoprincipalandinterestbyapledgeofthefullfaith,credit,andtaxingpoweroftheStateandarepaidwithtuitionandmatriculation fees. Athletic FacilitiesRevenueBonds arepayable solely from the net revenues of theUniversity’sAthleticDepartmentandgrossreceiptsfromtheimpositionofanyadmissionsfeeandanyspecialstudentfee.RevenuebondsarepayablesolelyfromandsecuredbyapledgeofrevenuesoftheUniversity’shousingfacilities,bookstore,diningservices,parking,vendingandfromadditionalfundsfromtheacademic“Universityfee”imposedbytheBoardofTrustees.InMay2019,theUniversityissuedGeneralObligationBondstotaling$5,635,000fortheconstructionofanewoutdoorfitnessandwellnesscenter.

Capitalleasestotaling$11,687,905includeacapitalleasewiththeClemsonUniversityLandStewardshipFoundation(CULSF),itscomponentunit,forspaceintheGreenvilleOneBuildingindowntownGreenville,SCandmultipleequipmentleases for printers and copiers. The outstanding liabilityon the capital lease for theGreenvilleOne building as ofJune30,2019was$10,710,141.Theoutstandingliabilityonequipmentleaseswas $977,764asofJune30,2019. Foradditionalinformation,seeNotes6and7inthenotestothefinancialstatements.

Economic Outlook As a state-supported higher education institution, theUniversity’seconomicpositioniscloselytiedtotheStateofSouthCarolina.TheStateendedfiscalyear2019witha$350millionbudgetarysurplus.Inhisyear-endpressrelease,StateComptrollerGeneralRichardEckstromnoted thatGeneralFundrevenuesincreased8.6percentoverthepreviousyear.Aportionoftheincreaseinrevenueswenttowards“supplementalspending”($344million)and$50taxrebates($61million).TheComptrollerbelieveslawmakersshoulddevotesomeofthesurplustotheState’s$24billionpensionfundingshortfall,whichhebelievesis“themostseriousproblemweface.” State appropriations to fundUniversity operationsincreased$12.6millionforfiscalyear2019,anincreaseof9.2percentfromthepreviousyear.AppropriationsforEducationalandGeneral activities accounted for $3.8million of thisincreaseandPublicServiceactivitiesincreased$2.9million.TheUniversityreceivedAdvancedMaterialsappropriationsof$5million,whichalsocontributedtotheincreaseinstateappropriations. Statescholarshipprogramsfundedwithlotteryproceedsincreasedbyapproximately$3million,to$63millionfor2019.Inaddition, theUniversity received$1.75millionfromtheStateCommissiononHigherEducationtofundtheScience,Technology,Engineering,andMath(STEM)program.Statecapitalappropriationsincreased$9.8millionasaresultofStateCapitalReserveFundsfortheResearchEducationCenterandGarrisonArenaEducation/ConferenceCenter. TheUniversity’sBoardofTrusteesadoptedabudgetfor2020 that included a 1 percent tuition increase for in-stateundergraduatestudents,thelowestpercentagein-stateincreasein21years,anda3.8percenttuitionincreaseforout-of-stateundergraduate students.Thebudget also includes revenuesfromasecondclassofacademicprogramfees.Revenuesfromauxiliaryenterprisesareexpected to increaseasa resultofcorporatesponsorships,athleticticketsales,anda4.5percentincreaseinhousinganddiningfees.

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CLEMSON UNIVERSITYSTATEMENT OF NET POSITIONJune30,2019

Description Amount ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current Assets: Cash and cash equivalents .............................................................................................................................................................................................................. $ 299,332,574 Restricted Assets - Current: Cash and cash equivalents ......................................................................................................................................................................................................... 266,200,289 Accounts receivable (net of provision for doubtful accounts of $627,021) .............................................................................................................. 27,765,438 Grants and contracts receivable ................................................................................................................................................................................................... 26,865,858 Contributions receivable, net ........................................................................................................................................................................................................ 1,011,361 Interest and income receivable .................................................................................................................................................................................................... 2,836,579 Student loans receivable ................................................................................................................................................................................................................. 3,382 Inventories ............................................................................................................................................................................................................................................ 3,065,126 Prepaid items ....................................................................................................................................................................................................................................... 12,139,640 Other current assets .......................................................................................................................................................................................................................... 4,768,681 Total current assets ................................................................................................................................................................................................................. 643,988,928 Noncurrent Assets: Notes receivable .................................................................................................................................................................................................................................. 207,692,844 Contributions receivable, net ........................................................................................................................................................................................................ 1,160,076 Investments .......................................................................................................................................................................................................................................... 3,448,164 Restricted Assets - Noncurrent: Cash and cash equivalents ......................................................................................................................................................................................................... 2,562,769 Student loans receivable ............................................................................................................................................................................................................ 6,171,497 Other assets .......................................................................................................................................................................................................................................... 1,986,705 Capital assets, not being depreciated ........................................................................................................................................................................................ 143,499,595 Capital assets, net of accumulated depreciation ................................................................................................................................................................... 1,258,095,508 Total noncurrent assets .............................................................................................................................................................................................................. 1,624,617,158 Total assets ................................................................................................................................................................................................................................. 2,268,606,086 Deferred Outflows of Resources: Deferred losses on bond refunding ............................................................................................................................................................................................ 4,585,005 Deferred outflows on net pension liability.............................................................................................................................................................................. 102,552,455 Deferred outflows on net retiree health benefits liability ................................................................................................................................................ 38,612,311 Total deferred outflows of resources .............................................................................................................................................................................. 145,749,771 Total assets and deferred outflows of resources ............................................................................................................................... $ 2,414,355,857

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES Current Liabilities: Accounts and retainages payable ................................................................................................................................................................................................ $ 35,740,476 Accrued payroll and related liabilities ...................................................................................................................................................................................... 24,085,043 Accrued compensated absences and related liabilities ..................................................................................................................................................... 14,561,607 Accrued interest payable ................................................................................................................................................................................................................ 4,545,623 Unearned revenues............................................................................................................................................................................................................................ 56,788,829 Bonds payable ...................................................................................................................................................................................................................................... 24,135,558 Capital leases payable ...................................................................................................................................................................................................................... 850,243 Deposits .................................................................................................................................................................................................................................................. 1,019,252 Funds held for others ....................................................................................................................................................................................................................... 1,159,172 Total current liabilities .......................................................................................................................................................................................................... 162,885,803 Noncurrent Liabilities: Accrued compensated absences and related liabilities ..................................................................................................................................................... 13,794,393 Funds held for others ....................................................................................................................................................................................................................... 6,951,851 Net pension liability .......................................................................................................................................................................................................................... 638,844,884 Net retiree health benefits liability............................................................................................................................................................................................. 588,163,078 Bonds payable ...................................................................................................................................................................................................................................... 640,560,899 Capital leases payable ...................................................................................................................................................................................................................... 10,837,662 Total noncurrent liabilities ........................................................................................................................................................................................................ 1,899,152,767 Total liabilities ........................................................................................................................................................................................................................... 2,062,038,570 Deferred Inflows of Resources: Deferred inflows on net pension liability ................................................................................................................................................................................ 4,189,669 Deferred inflows on net retiree health benefits liability ................................................................................................................................................... 48,114,018 Total deferred inflows of resources ................................................................................................................................................................................. 52,303,687 Total liabilities and deferred inflows of resources ........................................................................................................................... $ 2,114,342,257

NET POSITION Net investment in capital assets ....................................................................................................................................................................................................... $ 814,367,624 Restricted for nonexpendable purposes: Scholarships and fellowships ........................................................................................................................................................................................................ 58,978,506 Restricted for expendable purposes: Scholarships and fellowships ........................................................................................................................................................................................................ 22,591,621 Research ................................................................................................................................................................................................................................................. 491,893 Instructional/departmental use .................................................................................................................................................................................................. 12,659,930 Loans ..................................................................................................................................................................................................................................................... 2,185,987 Capital projects.................................................................................................................................................................................................................................... 133,638,729 Debt service .......................................................................................................................................................................................................................................... 11,729,406 Unrestricted ............................................................................................................................................................................................................................................... (756,630,096) Total net position .......................................................................................................................................................................................... $ 300,013,600

See accompanying notes to basic financial statements.

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CLEMSON UNIVERSITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFortheyearendedJune30,2019

Description Amount REVENUES Operating Revenues: Student tuition and fees (net of scholarship allowances of $110,275,074) .......................................................................... $ 425,218,585 Federal grants and contracts ...................................................................................................................................................................... 90,469,102 State grants and contracts ........................................................................................................................................................................... 78,533,200 Local grants and contracts .......................................................................................................................................................................... 967,895 Nongovernmental grants and contracts ................................................................................................................................................ 12,289,778 Sales and services of educational and other activities .................................................................................................................... 22,586,900 Sales and services of auxiliary enterprises - pledged for revenue bonds (net of scholarship allowances of $17,608,605) ........................................................................................................................... 153,447,756 Sales and services of auxiliary enterprises - not pledged.............................................................................................................. 36,236,294 Other operating revenues ............................................................................................................................................................................ 40,604,766 Total operating revenues .................................................................................................................................................................... 860,354,276

EXPENSES: Operating Expenses: Compensation and employee benefits ................................................................................................................................................... 632,151,025 Services and supplies .................................................................................................................................................................................... 319,566,429 Utilities ................................................................................................................................................................................................................ 20,547,574 Depreciation .................................................................................................................................................................................................... 59,346,439 Scholarships and fellowships ..................................................................................................................................................................... 33,578,665 Total operating expenses .................................................................................................................................................................... 1,065,190,132 Operating (loss) ........................................................................................................................................................................................... (204,835,856)

NONOPERATING REVENUES (EXPENSES) State appropriations .......................................................................................................................................................................................... 136,487,314 Federal appropriations ..................................................................................................................................................................................... 11,115,310 Gifts and grants .................................................................................................................................................................................................... 94,904,687 Interest income .................................................................................................................................................................................................... 18,079,366 Endowment income ........................................................................................................................................................................................... 9,829,214 Interest on capital asset related debt ......................................................................................................................................................... (23,415,655) Other nonoperating revenues ........................................................................................................................................................................ 4,665,185 Gain/loss on disposal of capital assets ...................................................................................................................................................... (257,972) Refunds to grantors ............................................................................................................................................................................................ (499,029) Facilities and administrative remittances to the State ........................................................................................................................ (279,601) Net nonoperating revenues ............................................................................................................................................................... 250,628,819

Income before other revenues, expenses, gains or losses ......................................................................................................... 45,792,963

State capital appropriations ........................................................................................................................................................................... 9,849,574 Capital grants and gifts ..................................................................................................................................................................................... 24,094,118 Additions to permanent endowments ....................................................................................................................................................... 38,230 Increase in net position ............................................................................................................................................................................ 79,774,885

NET POSITION Net position, beginning of year ..................................................................................................................................................................... 220,238,715 Net position, end of year ............................................................................................................................................... $ 300,013,600


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CLEMSON UNIVERSITY STATEMENT OF CASH FLOWSFortheyearendedJune30,2019

DESCRIPTION AMOUNT CASH FLOWS FROM OPERATING ACTIVITIES Payments from customers ................................................................................................................................................................................................................ $ 615,375,507 Grants and contracts ........................................................................................................................................................................................................................... 173,417,504 Payments to suppliers ........................................................................................................................................................................................................................ (325,498,061) Payments to employees ..................................................................................................................................................................................................................... (460,607,084) Payments for benefits ......................................................................................................................................................................................................................... (139,638,956) Payments to students ......................................................................................................................................................................................................................... (47,717,765) Inflows from Stafford loans.............................................................................................................................................................................................................. 70,281,859 Outflows from Stafford loans .......................................................................................................................................................................................................... (7,590,915) Loans to students ................................................................................................................................................................................................................................. (52,073) Collection of loans ................................................................................................................................................................................................................................ 1,245,141 Net cash provided (used) by operating activities ...................................................................................................................................................... (120,784,843)

CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES State appropriations ........................................................................................................................................................................................................................... 136,487,314 Federal appropriations ...................................................................................................................................................................................................................... 10,702,283 Gifts and grants ..................................................................................................................................................................................................................................... 94,751,904 Net cash flow provided (used) by noncapital financing activities ...................................................................................................................... 241,941,501

CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt .............................................................................................................................................................................................................. 6,383,890 State capital appropriations ............................................................................................................................................................................................................ 9,849,574 Capital grants and gifts received .................................................................................................................................................................................................... 22,826,984 Proceeds from sale of property ...................................................................................................................................................................................................... 1,282,537 Purchases of capital assets ............................................................................................................................................................................................................... (122,104,204) Capital lease payments ...................................................................................................................................................................................................................... (344,716) Principal payments and redemption premiums on long term debt ............................................................................................................................... (20,165,000) Interest and fees .................................................................................................................................................................................................................................. . (25,551,172) Net cash provided (used) by capital activities ............................................................................................................................................................ (127,822,107)

CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments ..................................................................................................................................................................................................................... 20,633,643 Proceeds from notes receivable with Clemson University Foundation ........................................................................................................................ 3,500,000 Proceeds from stock sales ................................................................................................................................................................................................................ 126,523 Net cash flows provided (used) by investing activities ........................................................................................................................................... 24,260,166

Net change in cash ............................................................................................................................................................................................................................... 17,594,717 Cash beginning of year ....................................................................................................................................................................................................................... 550,500,915 Cash end of year ............................................................................................................................................................................................ $ 568,095,632

RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) .................................................................................................................................................................................................................... $ (204,835,856) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense ................................................................................................................................................................................................................... 59,346,439 Amortization of net pension liability ..................................................................................................................................................................................... 27,304,836 Amortization of net retiree health benefit liability ......................................................................................................................................................... 12,637,389

Change in asset and liabiliites: Receivables, net ............................................................................................................................................................................................................................... (7,016,033) Grants and contracts receivable .............................................................................................................................................................................................. (1,957,609) Student loans receivable ............................................................................................................................................................................................................. 1,811,079 Prepaid items ................................................................................................................................................................................................................................... (273,619) Inventories ........................................................................................................................................................................................................................................ 94,386 Pooled fringe adjustment ........................................................................................................................................................................................................... (1,580,537) Accounts and retainages payable ............................................................................................................................................................................................ (8,307,510) Accrued payroll and related liabilities .................................................................................................................................................................................. (2,564,624) Accrued compensated absences and related liabilities ................................................................................................................................................. 2,227,000 Unearned revenue ......................................................................................................................................................................................................................... 3,983,703 Deposits held for others .............................................................................................................................................................................................................. (1,653,887) Net cash provided (used) by operating activities .............................................................................................................................. $ (120,784,843)

NON-CASH TRANSACTIONS Increase in fair value of investments and notes receivable ................................................................................................................................................ $ 14,430,837 Assets acquired through gifts.......................................................................................................................................................................................................... 1,267,134 State capital appropriations receivable ..................................................................................................................................................................................... 4,252,229 Collection of capital gift receivable ............................................................................................................................................................................................... 2,009,592 Loss on disposal of capital assets .................................................................................................................................................................................................. 1,540,509 Assets acquired through capital lease ......................................................................................................................................................................................... 605,528

RECONCILIATION OF CASH AND CASH EQUIVALENT BALANCES Current assets: Cash and cash equivalents .......................................................................................................................................................................................................... $ 299,332,574 Restricted cash and cash equivalents .................................................................................................................................................................................... 266,200,289 Noncurrent assets ................................................................................................................................................................................................................................ 2,562,769 Total cash and cash equivalent balances $ 568,095,632


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CLEMSON UNIVERSITY FOUNDATION NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF FINANCIAL POSITIONJune30,2019

DESCRIPTION AMOUNTASSETS Cash and cash equivalents................................................................................................................................................................................. $ 66,260,869 Contributions receivable, net ........................................................................................................................................................................... 26,919,204 Trusts held by other ............................................................................................................................................................................................. 6,106,646 Due from related organizations ...................................................................................................................................................................... 2,109,804 Investments ............................................................................................................................................................................................................. 523,817,422 Investments held for Clemson University .................................................................................................................................................. 207,692,844 Cash surrender value of life insurance ........................................................................................................................................................ 2,058,456 Land held for resale ............................................................................................................................................................................................. 11,900 Land, buildings and equipment, net ............................................................................................................................................................. 9,253,595 Funds held in trust for affiliates: Non-pooled assets, net ................................................................................................................................................................................... 6,827,590 Pooled investments .......................................................................................................................................................................................... 49,642,462 Contributions receivable, net ...................................................................................................................................................................... 22,122,542 Other assets ............................................................................................................................................................................................................. 424,898 Total assets .......................................................................................................................................................................... $ 923,248,232

LIABILITIES AND NET ASSETS Liabilities: Accounts payable and accrued liabilities ............................................................................................................................................... $ 1,265,537 Due to related organizations ........................................................................................................................................................................ 485,748 Accrued liability to Clemson University due to net investment appreciation ........................................................................ 146,677,655 Note payable to Clemson University ......................................................................................................................................................... 61,015,189 Actuarial liability of annuities payable .................................................................................................................................................... 3,881,688 Funds administered for affiliates ............................................................................................................................................................... 78,592,594 Total liabilities ........................................................................................................................................................................................ 291,918,411

Net Assets: Without donor restrictions ...................................................................................................................................................................... 36,984,922 With donor restricitons ............................................................................................................................................................................. 594,344,899 Total net assets ....................................................................................................................................................................................... 631,329,821 Total liabilities and net assets ...................................................................................................................................... $ 923,248,232


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CLEMSON UNIVERSITY FOUNDATION NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF ACTIVITIESFortheyearendedJune30,2019

DESCRIPTION

WITHOUTDONOR

RESTRICTIONS

WITHDONOR

RESTRICTIONS TOTALREVENUES, GAINS AND OTHER SUPPORT: Gifts and bequests................................................................................................................. $ 1,399,749 $ 33,482,429 $ 34,882,178 Income (loss) on investments.......................................................................................... 5,407,874 1,570,657 6,978,531

Net realized and unrealized gains on investments................................................. 2,151,457 26,554,660 28,706,117 Program income.................................................................................................................... 1,810,705 560,589 2,371,294 Other income (loss)............................................................................................................. 3,257,244 36,160 3,293,404 Change in value of split-interest agreements........................................................... 60,244 408,054 468,298 Reclassification of donor intent..................................................................................... 1,587,670 (1,587,670) — Total........................................................................................................................... 15,674,943 61,024,879 76,699,822 Net assets released from restrictions.......................................................................... 31,531,460 (31,531,460) — Total revenues, gains and other support................................................... 47,206,403 29,493,419 76,699,822

EXPENSES: Program expenses in support of Clemson University........................................... 33,921,239 — 33,921,239 General and administrative.............................................................................................. 3,574,398 — 3,574,398 Fundraising............................................................................................................................. 5,479,187 — 5,479,187 Total expenses....................................................................................................... 42,974,824 — 42,974,824

Change in net assets before other changes......................................................... 4,231,579 29,493,419 33,724,998

OTHER CHANGES: Contributions to/from a related entity........................................................................ (2,300) 664,584 662,284

Total other changes............................................................................................. (2,300) 664,584 662,284

Change in net assets................................................................................................. 4,229,279 30,158,003 34,387,282 Net assets at beginning of year............................................................................ 32,755,643 564,186,896 596,942,539 Net assets at end of year....................................................................... $ 36,984,922 $ 594,344,899 $ 631,329,821


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CLEMSON UNIVERSITY LAND STEWARDSHIP FOUNDATIONNON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF FINANCIAL POSITIONJune30,2019

DESCRIPTION AMOUNTASSETS Cash and cash equivalents ........................................................................................................... $ 3,541,475 Receivables ......................................................................................................................................... 85,023 Real estate investments ................................................................................................................. 46,659,274 Real estate and equipment, net .................................................................................................. 11,968,136 Direct financing lease .................................................................................................................... 10,743,899 Development costs .......................................................................................................................... 1,335,452 Total assets ............................................................................................................. $ 74,333,259

LIABILITIES AND NET ASSETS Liabilities: Accounts payable ........................................................................................................................ $ 298,547 Accrued interest payable ......................................................................................................... 28,754 Deposits held for others .......................................................................................................... 28,495 Unearned revenue ...................................................................................................................... 33,658 Deferred rent revenue .............................................................................................................. 2,186,041 Due to Clemson University Foundation ............................................................................ 20,932,472 Notes payable ............................................................................................................................... 21,723,980 Total liabilities ..................................................................................................................... 45,231,947

Unrestricted net assets ................................................................................................................. 29,101,312 Total net assets .................................................................................................................... 29,101,312 Total liabilities and net assets .......................................................................... $ 74,333,259


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CLEMSON UNIVERSITY LAND STEWARDSHIP FOUNDATION NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF ACTIVITIESFortheyearendedJune30,2019

DESCRIPTION AMOUNTREVENUES, GAINS AND OTHER SUPPORT: Gifts and contributions at fair value ........................................................................................ $ 150,000 Rental revenues ................................................................................................................................ 4,189,705 Direct financing................................................................................................................................. 3,682 Common area fees ........................................................................................................................... 389,892 Income on short-term investments.......................................................................................... 30,557 Total revenues and gains ................................................................................................... 4,763,836

EXPENSES: Program expenses: Administrative and other ........................................................................................................ 431,646 Greenville One .............................................................................................................................. 372,152 CU-ICAR campus ......................................................................................................................... 1,345,723 Total program expenses ..................................................................................................... 2,149,521 Interest expense .......................................................................................................................... 906,154 Total expenses ........................................................................................................................ 3,055,675

Change in unrestricted net assets before other changes ..................................... 1,708,161

Other changes: Contributions to a related entity, net ................................................................................. (92,675)

Change in net assets without donor restrictions ............................................................... 1,615,486 Unrestricted net assets, beginning of year ............................................................................ 27,485,826 Unrestricted net assets, end of year ............................................................... $ 29,101,312


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IPTAY NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF FINANCIAL POSITIONJune30,2019

DESCRIPTION AMOUNTASSETS Cash and cash equivalents ........................................................................................................... $ 13,401,692 Due from related organizations ................................................................................................. 26 Annual fund receivable, net ......................................................................................................... 593,403 Investments ........................................................................................................................................ 22,368,053 Funds held in trust by an affiliate: Non-pooled assets ...................................................................................................................... 6,135,554 Pooled investments ................................................................................................................... 35,258,853 Contributions receivable, net ................................................................................................ 21,952,256 Total assets ............................................................................................................. $ 99,709,837

LIABILITIES AND NET ASSETS Liabilities: Accounts payable and accrued expenses ......................................................................... $ 106,912 Due to related organizations ................................................................................................. 2,609,904 Total liabilities ..................................................................................................................... 2,716,816

Net assets Without donor restrictions .................................................................................................... 68,222,183 With donor restrictions ........................................................................................................... 28,770,838 Total net assets .................................................................................................................... 96,993,021 Total liabilities and net assets .......................................................................... $ 99,709,837


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IPTAY NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNITSTATEMENT OF ACTIVITIESFortheyearendedJune30,2019

DESCRIPTION

WITHOUTDONOR

RESTRICTIONS

WITH DONOR

RESTRICTIONS TOTALREVENUES, GAINS AND OTHER SUPPORT: Contributions from the public ................................................................. $ 46,410,880 $ 12,527,012 $ 58,937,892 Net realized and unrealized gains on investments ......................... 3,821,639 145,121 3,966,760 Investment income ....................................................................................... 543,519 28,093 571,612 Interest income .............................................................................................. 187,762 — 187,762

50,963,800 12,700,226 63,664,026 Net assets released from restrictions - Satisfaction of time restrictions ........................................................ 7,823,843 (7,823,843) — Satisfaction of purpose restrictions ................................................ 2,088,381 (2,088,381) —Total revenues, gains and other support ................................................. 60,876,024 2,788,002 63,664,026

EXPENSES: Program services: Support of Clemson University: Athletic operations ................................................................................. 33,032,118 — 33,032,118 Football operations building .............................................................. 477,537 — 477,537 Debt service ............................................................................................... 7,005,132 — 7,005,132 Other construction costs ...................................................................... 12,505,000 — 12,505,000 Other ......................................................................................................... 4,547,856 — 4,547,856 Management and general ..................................................................... 776,169 — 776,169 Total expenses ..................................................................................... 58,343,812 — 58,343,812

Excess (deficit) of revenues over expenses ...................................... 2,532,212 2,788,002 5,320,214

Contributions of net assets from a related party (Note 7) ............... 100 3,342 3,442

Change in net assets ............................................................................... 2,532,312 2,791,344 5,323,656 Net assets, beginning of year .............................................................. 65,689,871 25,979,494 91,669,365 Net assets, end of year .......................................................... $ 68,222,183 $ 28,770,838 $ 96,993,021


NOTES TO FINANCIAL STATEMENTS

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NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Organization ClemsonUniversityisaState-supported,coeducationalinstitutionofhighereducation.TheUniversityisgrantedanannualappropriationforoperatingpurposesasauthorizedbytheSouthCarolinaGeneralAssembly.Theappropriationasenactedbecomesthelegaloperatingbudgetfortheinstitution.TheAppropriationAct authorizes expenditures from fundsappropriatedfromtheGeneralFundoftheStateandauthorizesexpendituresoftotaloperatingfunds.ThelawsoftheStateandthepoliciesandproceduresspecifiedbytheStateforStateagenciesandinstitutionsareapplicabletotheactivitiesoftheUniversity.TheUniversitywasestablishedasaninstitutionofhighereducationbySection59-119-20oftheCodeofLawsofSouthCarolinainaccordancewiththewillofThomasGreenClemsonandtheActofAcceptanceoftheGeneralAssemblyofSouthCarolina.TheUniversityisacomponentunitoftheStateofSouthCarolinaanditsfinancialstatementsareincludedintheComprehensiveAnnualFinancialReportoftheStateofSouthCarolina.TheUniversityisgovernedbyaboardofthirteenmembers,includingsixelectedbytheStateLegislatureand seven self-perpetuating lifemembers. Accordingly, assuchitadministers,hasjurisdictionover,andisresponsibleforthemanagementoftheUniversity.

Reporting Entity Thefinancialreportingentity,asdefinedbyGovernmentalAccountingStandardsBoard (GASB)CodificationSection2100,Defining theFinancialReportingEntity, consists oftheprimarygovernment,organizationsforwhichtheprimarygovernmentisfinanciallyaccountableandotherorganizationsforwhichthenatureandsignificanceoftheirrelationshipwiththeprimarygovernmentaresuchthatexclusioncouldcausethefinancialstatementstobemisleadingorincomplete.GASBCodificationSection2600,ReportingEntityandComponentUnit Presentation andDisclosure, provides criteria fordeterminingwhethercertainorganizationsshouldbereportedascomponentunitsbasedonthenatureandsignificanceoftheirrelationshipwithaprimarygovernmentandclassifiesreportingrequirementsforthoseorganizations.Basedonthesecriteria,thefinancialstatementsincludetheUniversityanditsblendedcomponentunitastheprimarygovernment,andotherrelatedentitiesasdiscretelypresentedcomponentunits. TheClemsonResearchFacilitiesCorporation(CRFC)isaseparatelycharterednot-for-profitcorporationestablishedtoconstructcertainfacilitiesfortheUniversity.CRFCisafully blended component unit of theUniversity. AlthoughlegallyseparatefromtheUniversity,CRFC’sactivitiesaresointertwinedwiththeUniversity’sthattheyare,insubstance,thesameastheprimaryentity.CRFC’sactivitiesaregovernedbyitsBoardofDirectorswhichiswhollycomprisedofUniversityrepresentatives.ItsbalancesandtransactionsareblendedwiththoseoftheUniversityandreportedasiftheywerebalancesandtransactionsoftheUniversity.

TheClemsonUniversityFoundation(CUF)isaseparatelychartered corporation organized exclusively to promotethe development andwelfare ofClemsonUniversity in itseducational and scientific purposes. CUF’s activities aregoverned by itsBoard ofDirectors. CUF is considered acomponentunit,and isdiscretelypresented in thefinancialstatements, because the nature and significance of itsrelationshipwiththeUniversityissuchthatexclusionfromthe reporting entitywould render the financial statementsincomplete.CUFisconsideredanongovernmentalcomponentunitsinceitdoesnotmeetthedefinitionofagovernmentalentity.NoneofthefollowingcharacteristicsofagovernmentalentityapplytoCUF:a)Organizationisapubliccorporation;b)Organizationisabodycorporateandpolitic;c)Acontrollingmajorityof themembersof theorganizationareelectedorappointed by governmental officials; d)There is potentialforunilateraldissolutionbyagovernmentwiththenetassetsreverting to the government; and e)The organization hasthepowertoenactandenforceataxlevy.BecauseCUFisdeemednottobeagovernmentalentityandusesadifferentreportingmodel,itsbalancesandtransactionsarereportedonseparatefinancialstatements.Copiesoftheseparatelyissuedfinancial statements of theClemsonUniversityFoundationcanbeobtainedbysendingarequesttothefollowingaddress:ClemsonUniversityFoundation,110DanielDrive,Clemson,SC,29634. TheClemsonUniversityLandStewardshipFoundation(CULSF)isaseparatelycharteredcorporation,establishedtoservetheneedsofClemsonUniversityinthemanagement,development, and investment of real property and related assets. CULSF’s activities are governed by itsBoard ofDirectors. CULSF is considered a component unit, and isdiscretelypresentedinthefinancialstatements,becausethenatureandsignificanceofitsrelationshipwiththeUniversityissuchthatexclusionfromthereportingentitywouldrenderthefinancial statements incomplete. CULSF is considereda nongovernmental component unit since it does notmeetthedefinitionofagovernmentalentity(asdescribedabove).Copies of the separately issuedfinancial statements of theClemsonUniversityLandStewardship Foundation can beobtained by sending a request to the following address:ClemsonUniversityLandStewardshipFoundation,P.O.Box1889,Clemson,SC29633. IPTAYisaseparatelycharteredcorporationestablishedexclusively to support University athletics. IPTAY’sactivitiesaregovernedbyitsBoardofDirectors.IPTAYisconsideredacomponentunit,andisdiscretelypresentedinthefinancialstatements,becausethenatureandsignificanceofitsrelationshipwiththeUniversityissuchthatexclusionfromthereportingentitywouldrenderthefinancialstatementsincomplete. IPTAY is considered a nongovernmentalcomponent unit since it does notmeet the definition of agovernmental entity (as described above). Copies of theseparately issued financial statements of IPTAY can beobtainedbysendingarequesttothefollowingaddress:IPTAY,P.O.Box1529,Clemson,SC29633.


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TheUniversity’s discretely presented component unitsarediscussedinNote20. TheClemsonUniversityResearchFoundation(CURF)nolongermeetsthecriteriaforinclusionasacomponentunit.TransactionsbetweentheUniversityandCURFarereportedinNote13–RelatedParties.

Financial Statement Presentation Thefinancial statementpresentation for theUniversitymeetstherequirementsofGASBCodificationSections2100-2900, FinancialReportingEntity, andCo5,Colleges andUniversities.Thefinancialstatementpresentationprovidesacomprehensive, entity-wide perspective of theUniversity’sassets, liabilities,netposition, revenues, expenses, changesinnetposition,andcashflows.

Use of Estimates The preparation of financial statements in conformitywith generally accepted accounting principles requiresmanagement tomakeestimatesandassumptions thataffectthereportedamountsofassets, liabilities,deferred inflows,deferredoutflows,revenuesandexpenses,andaffectdisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatements.Significantestimatesincludeseparationofaccruedcompensatedabsencesbetweencurrentandnon-currentanddepreciationexpense.Actualresultscoulddifferfromthoseestimates.

Basis of Accounting Forfinancialreportingpurposes,theUniversity,alongwithClemsonResearchFacilitiesCorporation, its fully blendedcomponentunit,isconsideredaspecial-purposegovernmentengagedonly in business-type activities. Accordingly, theUniversity’s financial statements are presented using theeconomicresourcesmeasurementfocusandtheaccrualbasisofaccounting.Undertheaccrualbasis,revenuesarerecognizedwhenearned,andexpensesarerecordedwhenanobligationhasbeenincurred.Studenttuitionandauxiliaryenterprisefeesarepresentednetofscholarshipsandfellowshipsappliedtostudentaccounts,whilepaymentsmadedirectlyarepresentedasscholarshipandfellowshipexpenses.Allsignificantintra-agencytransactionshavebeeneliminated. TheClemsonUniversityFoundation(CUF),theClemsonUniversity Land Stewardship Foundation (CULSF), andIPTAYareprivatenonprofitorganizationsthatreportunderFinancialAccountingStandardsBoard (FASB) standards,includingAccounting StandardsCodificationTopic 958,Not-for-ProfitEntities.Assuch,certainrevenuerecognitioncriteria and presentation features are different fromGASBrevenue recognition criteria andpresentation features. NomodificationshavebeenmadetoCUF,CULSF,orIPTAY’sfinancial information in theUniversity’sfinancial reportingentityforthesedifferences.

Cash and Cash Equivalents The amounts shown in the financial statements inUniversityfundsas“cashandcashequivalents”representpettycash,cashondepositinbanks,cashondepositwiththeStateTreasurer,cashinvestedinvariousinstrumentsbytheStateTreasureraspartoftheState’sinternalcashmanagementpool,cashinvestedinvariousshort-terminstrumentsbytheStateTreasurerandheldinseparateagencyaccounts,andcertainfundsinvestedwithWellsFargo. MostStateagencies,includingtheUniversity,participatein the State’s internal cashmanagement pool. Becausethe cashmanagement pool operates as a demand depositaccount,amountsinvestedinthepoolareclassifiedascashand cash equivalents. TheStateTreasurer administers thecashmanagementpool. Thepoolincludessomelong-terminvestmentssuchasobligationsoftheUnitedStatesandcertainagenciesoftheUnitedStates,obligationsoftheStateofSouthCarolinaandcertainofitspoliticalsubdivisions,certificatesofdeposit,collateralizedrepurchaseagreements,andcertaincorporatebonds.Forcreditriskinformationpertainingtothecashmanagementpool,seethedepositsdisclosuresinNote2. TheState’sinternalcashmanagementpoolconsistsofageneraldepositaccountandseveralspecialdepositaccounts.TheStaterecordseachfund’sequity interest in thegeneraldeposit account; however, all earningson that account arecredited to theGeneralFundof theState. TheUniversityrecordsandreportsitsdepositsinthegeneraldepositaccountatcost.Itrecordsandreportsitsspecialdepositaccountatfairvalue.Investmentsheldbythepoolarerecordedatfairvalue.InterestearnedbytheUniversity’sspecialdepositaccountsispostedtoitsaccountattheendofeachmonthandisretained.Interest earnings are allocated based on the percentage oftheUniversity’saccumulateddailyincomereceivabletothetotalincomereceivableofthepool.Reportedinterestincomeincludes interest earnings at the stated rate, realizedgains/losses,andunrealizedgains/lossesarisingfromchangesinthefairvalueofinvestmentsheldbythepool.Realizedgainsandlossesareallocateddailyandareincludedintheaccumulatedincomereceivable.Unrealizedgainsandlossesareallocatedatyearendbasedonthepercentageofownershipinthepool. SomeStateTreasurer accounts are not included in theState’sinternalcashmanagementpoolbecauseofrestrictionsontheuseofthefunds.Forthoseaccounts,cashequivalentsinclude investments in short-term, highly liquid securitieshaving an internalmaturity of threemonths or less at thetimeofacquisition.Forpurposesofthestatementsofcashflows,theUniversityconsidersallhighlyliquidinvestmentswithanoriginalmaturityofthreemonthsorlesstobecashequivalents.FundsinvestedthroughtheStateTreasurer’sCashManagementProgramareconsideredtobecashequivalents.


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Receivables Accountsreceivableconsistsoftuitionandfeechargestostudentsandauxiliaryenterpriseservicesprovidedtostudents,facultyandstaff, themajorityofeach residing in theStateofSouthCarolina.Accountsreceivablearerecordednetofestimateduncollectibleamounts. Grants and contracts receivable include amounts duefromtheFederalgovernment,stateandlocalgovernments,orprivatesources,inconnectionwithreimbursementofallowableexpendituresmade pursuant to theUniversity’s grant andcontracts. Also includedareamountsdue forFederal loanandscholarshipsprogramsand reimbursements forFederalland-grantexpenditures. Contributions receivable are accounted for at theirestimatednetrealizablevalue.Theestimatednetrealizablevalue comprehends the present value of long-termpledgesandreductionsforanyallowanceforuncollectiblepledges.PledgesvaryfromonetotenyearsandareusedtosupportspecificallyidentifiedUniversityprogramsandinitiatives. AmountsduefromtheClemsonUniversityFoundationarepursuanttoaMemorandumofUnderstandingbetweentheUniversityandthatentitypromptedbya1999changeintheSouthCarolinaCodeofLaws that allowed state-supporteduniversitiestolendendowmentbalancestoseparatelycharterednot-for-profitentitieswhoseexistenceisprimarilyprovidingfinancialassistanceandothersupporttotheinstitutionanditseducationalprograms.Foradditionalinformationregardingthisloan,seeNote3. Student loansreceivableconsistsofamountsduefromthe Federal PerkinsLoan Program, and from other loansadministeredbytheUniversity. Interestandincomereceivableconsistsofamountsduefrom theStateTreasurer relating to holdings in theState’sinternalcashmanagementpoolandcashinvestedinvariousshort-terminvestmentsbythatagency.

Inventories Inventoriesforinternalusearevaluedatcost.Inventoriesforresalearecarriedat thelowerofcostormarket. Itemsaccounted for asUniversity inventories using themovingweighted averagemethod include:maintenance supplies,housing supplies, janitorial and auto supplies, printingand graphic supplies, office supplies, computer parts andaccessories,telecommunicationssupplies,medicalsupplies,andClemsonbluecheeseproduction.

Prepaid Items Expendituresforinsuranceandsimilarservicespaidforinthecurrentorpriorfiscalyearsandbenefitingmorethanoneaccountingperiodareallocatedamongaccountingperiods.FortheUniversity,amountsreportedinthisassetaccountconsistprimarilyofprepaidinsurance,prepaidpostage,prepaidairlinetickets,andadvancepaymentsformaintenanceandserviceagreements.

Investments TheUniversityaccountsforitsinvestmentsatfairvalue

inaccordancewithGASBStatementNo.31,AccountingandFinancialReportingforCertainInvestmentsandforExternalInvestmentPools.Changesinunrealizedgain(loss)onthecarryingvalueofinvestmentsarereportedasacomponentofinvestmentincomeinthestatementofrevenues,expenses,andchangesinnetposition.

Noncurrent Cash and Investments Noncurrent cash and investments primarily consist ofpermanentlyendowedfundsandfederalstudentloanfunds.These funds are externally restricted and are classified asnoncurrentassetsinthestatementofnetposition.

Other Assets TheUniversity submits a pooled fringe benefit rateproposaltoitscognizantagency,theU.S.DepartmentofHealth&HumanServicestwoyearsinadvanceofactualcharges.Under-recoveriesofactualcostsarerecognizedasanOtherAsset.Theseunder-recoverieswillbeconsideredintherateproposalforthenextreviewperiod.

Capital Assets Capitalassetsarerecordedatcostatthedateofacquisitionorfairmarketvalueatthedateofdonationinthecaseofgifts.TheUniversityfollowscapitalizationguidelinesestablishedbytheStateofSouthCarolina.Alllandiscapitalized,regardlessofcost.Qualifyingimprovementsthatrestinoronthelanditselfarerecordedasdepreciablelandimprovements.Majoradditionsandrenovationsandotherimprovementsthataddtotheusablespace,prepareexistingbuildingsfornewuses,orextendtheusefullifeofanexistingbuildingarecapitalized.TheUniversitycapitalizesmovablepersonalpropertywithaunitvalueinexcessof$5,000andausefullifeinexcessofoneyearanddepreciablelandimprovements,buildingsandimprovements, and intangible assets, including internallydevelopedsoftware,costinginexcessof$100,000.Routinerepairs andmaintenance and library materials, exceptindividual items costing in excess of $5,000, are chargedtooperatingexpensesintheyearinwhichtheexpensewasincurred. Depreciationiscomputedusingthestraight-linemethodovertheestimatedusefullivesoftheassets,generally15to40yearsforbuildingsandimprovementsandlandimprovementsand5 to 20years formachinery, equipment, andvehicles.Internallydevelopedsoftwareisdepreciatedusingthestraight-linemethodoverathreeyearperiod.Depreciationexpenseischargedmonthly,withamid-monthconventionutilizedfortheinitialmonththattheassetisplacedinservice.

Unearned Revenues Unearnedrevenuesincludeamountsreceivedfortuitionandfeesandcertainauxiliaryactivitiespriortotheendofthefiscalyearbut related to thesubsequentaccountingperiod.Unearnedrevenuesalsoincludeamountsreceivedfromgrantandcontractsponsorsthathavenotyetbeenearned.


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Deposits Deposits represent football-related guarantees andconference settlement amounts, andvarious student-relatedamountsincluding:dormitoryroomdeposits,securitydepositsforpossibleroomdamageandkeyloss,otherdeposits,andstudentfeerefunds.Studentdepositsarerecognizedasrevenueduringthesemesterforwhichthefeeisapplicableandearnedwhen thedeposit isnonrefundable to thestudentunder theforfeittermsoftheagreement.

Funds Held for Others CurrentbalancesinFundsHeldforOthersresultprimarilyfromtheUniversityactingasanagent,orfiduciary,foranotherentity.Theseincludeamountsduetootherentitiesandamountsdueforvariousstudyabroadprograms.NoncurrentbalancesrepresenttheFederalliabilityforthePerkinsLoanProgram.

Internal Service and Auxiliary Enterprise Activities Both revenue and expenses relating to internal service(including information technology costs) and auxiliaryenterprise activities includingprint shop, office equipment,maintenance, transportation services, telecommunications,institutionalcomputing,bookstores,andcafeteriashavebeeneliminated.

Compensated Absences Generally all permanent full-time State employeesandcertainpart-timeemployeesscheduled toworkat leastone-half of the agency’sworkweek are entitled to accrueand carry forward at calendar year-endmaximumsof 180days sick leave and45days annual vacation leave, exceptthat facultymembers do not accrue annual leave. UponterminationofStateemployment,employeesareentitledtobepaidforaccumulatedunusedannualvacationleaveuptothemaximum,butarenotentitledtoanypaymentforunusedsickleave.Thecompensatedabsencesliabilityincludesaccruedannual leave and compensatory overtime leave earned forwhichtheemployeesareentitledtopaidtimeofforpaymentat termination. TheUniversity calculates the compensatedabsencesliabilitybasedonrecordedbalancesofunusedleaveforwhich the employer expects to compensate employeesthroughpaidtimeofforcashpaymentsattermination.Thatliabilityisinventoriedatfiscalyear-endcurrentsalarycostsandthecostofthesalary-relatedbenefitpaymentsnetchangeintheliabilityisrecordedinthecurrentyearintheapplicablefunctionalexpenditurecategories.

Noncurrent Liabilities Noncurrent liabilities include (1) principal amounts ofrevenue bonds payable and capital lease obligationswithcontractualmaturities greater than one year; (2) estimatedamountsforaccruedcompensatedabsencesandotherliabilitiesthatwillnotbepaidwithinthenextfiscalyear;and(3)otherliabilitiesthat,althoughpayablewithinoneyear,aretobepaidfromfundsthatareclassifiedasnoncurrentassets.

Net Pension Liability For purposes ofmeasuring the net pension liability,deferred outflows of resources and deferred inflowsof resources related to pensions, and pension expense,information about the fiduciary net position of the SouthCarolinaRetirementSystem(SCRS)andtheSouthCarolinaPoliceOfficersRetirementSystem(PORS)andadditionsto/deductions fromSCRS’s andPORS’fiduciarynet positionhavebeendeterminedonthesamebasisastheyarereportedbySCRSorPORS.Forthispurpose,benefitpayments(includingrefundsofemployeecontributions)arerecognizedwhendueandpayableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue.

Other Postemployment Benefits Liability Forpurposesofmeasuringthenetpostemploymentbenefitliability,deferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopostemploymentbenefits,andbenefitexpense,informationaboutthefiduciarynetpositionoftheSouthCarolinaPublicEmployeeBenefitAuthority’sRetireeHealthCare Plan andLong-TermDisability IncomePlanand additions to/deductions from thefiduciary net positionoftheplanshavebeendeterminedonthesamebasisastheyarereportedbytheSouthCarolinaPublicEmployeeBenefitAuthority. For this purpose, benefit payments (includingrefundsofemployeecontributions)arerecognizedwhendueandpayableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue.

Deferred Outflows of Resources and Deferred Inflows of Resources Deferredoutflowsof resources represent consumptionofnetpositionthatisapplicabletoafutureperiod.Deferredinflowsofresourcesrepresentacquisitionofnetpositionthatisapplicabletoafutureperiod.FortheUniversity,refundsrelatedtodebtdefeasanceareincludedindeferredoutflowsofresources.Thedeferredamountwillbeamortizedovertheremaininglifeofthedebtrefunded.Changesinnetpensionliabilityandnetpostemploymentbenefitliabilitynotincludedin expense are reported as deferred outflows of resourcesor deferred inflows of resources. Employer contributionssubsequenttothemeasurementdateofthenetpensionliabilityand net postemployment benefit liability are reported asdeferredoutflowsofresources.

Net Position TheUniversity’scomponentsofnetpositionareclassifiedasfollows:

Net Investment in Capital Assets: This represents theUniversity’s total investment in capital assets, net ofoutstandingdebtobligationsrelatedtothosecapitalassets.Totheextentdebthasbeenincurredbutnotyetexpendedforcapitalassets,suchamountsarenotincludedasacomponentofnetinvestmentincapitalassets.


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Restricted Net Position - Nonexpendable: Nonexpendablerestrictednetpositionconsistsofendowmentandsimilartypefundsinwhichdonorsorotheroutsidesourceshavestipulated, as a conditionof thegift instrument, that theprincipal is tobemaintained inviolate and inperpetuity,andinvestedforthepurposeofproducingpresentandfutureincome,whichmayeitherbeexpendedoraddedtoprincipal.

Restricted Net Position - Expendable:RestrictedexpendablenetpositionincludesresourcesinwhichtheUniversityislegally or contractually obligated to spend resources inaccordancewith restrictions imposed by external thirdparties.

Unrestricted Net Position: Unrestricted net positionrepresentsresourcesderivedfromstudenttuitionandfees,stateappropriations,andsalesandservicesofeducationaldepartments and auxiliary enterprises.These resourcesare used for transactions relating to the educational andgeneraloperationsoftheUniversityandmaybeusedatthediscretionofthegoverningboardtomeetcurrentexpensesfor anypurpose. These resources also include auxiliaryenterprises,whicharesubstantiallyself-supportingactivitiesthatprovideservicesforstudents,facultyandstaff.

Whenanexpenseisincurredthatcanbepaidusingeitherrestrictedorunrestrictedresources,theUniversity’spolicyistofirstapplytheexpensetowardsunrestrictedresourcesandthentowardsrestrictedresources.

Income Taxes TheUniversity is a political subdivision of the StateofSouthCarolinaandisconsequentlyexemptfromfederalincometaxesunderSection115(1)of theInternalRevenueCode,asamended. The InternalRevenueService has determined that theClemsonUniversity Foundation, theClemsonUniversityResearch Foundation, the Clemson University LandStewardship Foundation, and IPTAY qualify as exemptorganizationsunderInternalRevenueCodeSection501(c)(3)andassuchareexemptfromtaxationonrelatedincome.

Classification of Revenues and Expenses TheUniversityhasclassifieditsrevenuesandexpensesaseitheroperatingornonoperatingaccordingtothefollowingcriteria:

Operating revenues and expenses:Operatingrevenuesincludeactivitiesthathavethecharacteristicsofexchangetransactions,suchas(1)studenttuitionandfees,netofscholarshipdiscountsandallowances,(2)salesandservicesofauxiliaryenterprises,netofscholarshipdiscountsandallowances,(3)mostFederal,state and local grants and contracts, and (4) interest oninstitutional loans. Operatingexpenses includeallexpensetransactionsincurredotherthanthoserelatedtoinvesting,capitalornoncapitalfinancingactivities.

Nonoperating revenues and expenses: Nonoperatingrevenuesincludeactivitiesthathavethecharacteristicsofnonexchangetransactions,suchasgiftsandcontributions,andotherrevenuesourcesthataredefinedasnonoperatingrevenues byGASB StatementNo. 9, Reporting CashFlows of Proprietary andNonexpendableTrust FundsandGovernmental EntitiesThatUse Proprietary FundAccounting, andGASBStatementNo. 34, such as stateand federal appropriations and investment income.Nonoperating expenses include interest paid on capitalassetrelateddebt,lossesonthedisposalofcapitalassets,andrefundstograntors.

Educational Activities Revenue Revenuesfromsalesandservicesofeducationalactivitiesgenerally consist of amounts received from instructional,laboratory, research, and public service activities thatincidentallycreategoodsandserviceswhichmaybesoldtostudents,faculty,staff,andthegeneralpublic.TheUniversityreceives such revenues primarily from various activitiesrelatedtotheUniversity’sagriculturalpublicservicemission,includingpesticideregistrationandlicensingfees,livestock,poultry and health test fees, extension service fees, forestproduct sales, and youth camp fees. These unrestrictedrevenues are collectively labeled “Sales and Services ofEducationalDepartments”.

Scholarship Discounts and Allowances Studenttuitionandfeerevenues,andcertainotherrevenuesfromstudents,arereportednetofscholarshipdiscountsandallowancesinthestatementofrevenues,expensesandchangesinnetposition.Scholarshipdiscountsandallowancesarethedifferencebetweenthestatedchargeforgoodsandservicesprovidedby theUniversity,and theamount that ispaidbystudentsand/orthirdpartiesmakingpaymentsonthestudents’behalf.Certaingovernmentalgrants,suchasPellgrants,andotherFederal,stateornongovernmentalprogramsarerecordedaseitheroperatingornonoperatingrevenuesintheUniversity’sfinancialstatements.Totheextentthatrevenuesfromsuchprogramsareusedtosatisfytuitionandfeesandotherstudentcharges, theUniversityhasrecordedascholarshipdiscountandallowance.

Adoption of New Accounting Standards Effective for thefiscal year ended June 30, 2019, theUniversityadoptedGASBStatementNo.83,CertainAssetRetirementObligations.This statement establishes criteriafor determining the timing andpattern of recognitionof aliability anda correspondingdeferredoutflowof resourcesforassetretirementobligations.Italsorequiresdisclosureofinformationaboutthenatureofassetretirementobligations,themethodsandassumptionsused for the estimatesof theliabilities, and the estimated remaining useful life or theassociatedtangiblecapitalassets.TheadoptionofthisstandardhadnoeffectontheUniversity’sfinancialstatementsinthecurrentfiscalyear.


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TheUniversityalsoadoptedGASBStatementNo.88,CertainDisclosuresRelatedtoDebt,includingDirectBorrowingsandDirectPlacements.Thisstatementimprovestheinformationthatisdisclosedinnotestothefinancialstatementsrelatedtodebt,includingdirectborrowingsanddirectplacements.Italsoclarifieswhichliabilitiesshouldbeincludedwhendisclosinginformationrelatedtodebt.TheadoptionofthisstandardhadnoeffectontheUniversity’sfinancialstatementsinthecurrentfiscalyear.

NOTE 2.CASH AND CASH EQUIVALENTS, DEPOSITS AND INVESTMENTS AlldepositsandinvestmentsoftheUniversityareunderthecontroloftheStateTreasurerwho,bylaw,hassoleauthorityforinvestingStatefunds.Certainmoniesaredepositedorinvestedwithormanagedbyfinancialinstitutionsandbrokers. Thefollowingschedulereconcilesdepositsandinvestmentswithinthefootnotestothebalancesheetamounts:

Reconciliation of Deposits and Investments

Statement of Net Position AmountCash and cash equivalents: Current - unrestricted $ 299,332,574 Current - restricted 266,200,289 Noncurrent - restricted 2,562,769Investments 3,448,164 Total $ 571,543,796

Footnotes AmountCash on hand $ 230,061Deposits held by State Treasurer 567,737,984Other deposits 127,587Investments held by State Treasurer 154,439Other investments 3,293,725 Total $ 571,543,796

Deposits Held by State Treasurer StatelawrequiresfullcollateralizationofallStateTreasurerbankbalances.TheStateTreasurermustcorrectanydeficienciesincollateralwithinsevendays. WithrespecttoinvestmentsintheState'sinternalcashmanagementpool,alloftheStateTreasurer'sinvestmentsareinsuredorregisteredorareinvestmentsforwhichthesecuritiesareheldbytheStateoritsagentintheState'sname.Informationpertainingto thereportedamounts, fairvalues,andcreditriskof theStateTreasurer's investments isdisclosedin theComprehensiveAnnualFinancialReportoftheStateofSouthCarolina.ForthefiscalyearendingJune30,2019,anunrealizedappreciationof$5,399,495isincludedinthe$567,737,984identifiedaboveas“DepositsheldbyStateTreasurer.”

Other Deposits TheUniversity'sotherdepositsatyear-endwereentirelycoveredbyfederaldepositoryinsuranceorcollateralheldbycustodialbanks.

Investments Held by State Treasurer InvestmentsheldbyStateTreasurercompriseinvestmentsheldfortheUniversityandtheStateofSouthCarolinawhicharelegallyrestricted,andearningsthereonbecomerevenueofthespecificfundfromwhichtheinvestmentwasmade.Theseinvestmentsarespecific,identifiableinvestmentsecurities.InvestmentsconsistofAgriculturalCollegestockwithacarryingamountof$95,900andPerpetualstockwithacarryingamountof$58,539heldbytheStateTreasurerasTrusteeinPerpetuityonwhichtheyarerequiredtopaytheUniversitysixpercentperyear.Sincethereisnoreadilydeterminablefairvaluefortheseinvestments,theyhavebeenassignedafairvalueequaltotheirhistoricalcostvalue.

Other Investments TheUniversityhasinvestmentsinmutualfundsasauthorizedbyasingledonor.Themutualfundswithafairvalueof$2,395,168areheldandinvestedbyWellsFargo,astrusteeinaccordancewiththeendowmentagreementspecifiedbythedonor.Theseinvestmentsarestatedatfairvalueandincludeunrealizedappreciationof$1,583,711.Purchasesandsalesareaccountedforonthetradedate.Bothunrealizedandrealizedgainsandlossesoninvestmentshavebeenrecorded.Earningsarerecordedonanaccrualbasis. DuringthefiscalyearendingJune30,2018,theUniversityenteredintoasplitdollarlifeinsurancepolicywithanathleticscoach.TheUniversityhasrecordedinvestmentswithafairvalueof$898,557relatedtothispolicy.


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TheUniversityhasadoptedapplicableaccountingstandardsforitsfinancialassetsandliabilitieswhichclarifythatfairvalueisanexitprice,representingthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.TheUniversityutilizesmarketdataorassumptionsthatmarketparticipantswoulduseinpricingtheassetorliability.Thestandardsestablishathreetierfairvaluehierarchy,whichprioritizestheinputsusedinmeasuringfairvalue.Thesetiersinclude:Level1,definedasobservableinputssuchasquotedpricesinactivemarkets;Level2,definedasinputsotherthanquotedpricesinactivemarketsthatareeitherdirectlyorindirectlyobservable;andLevel3,definedasunobservableinputsaboutwhichlittleornomarketdataexists,thereforerequiringanentitytodevelopitsownassumptions.TheUniversity'sinvestmentsconsistentirelyofmutualfundsandotherinvestmentswithreadilyterminablefairvaluesinanactivemarket.TheseinvestmentshavebeencategorizedasLevel1. TheUniversitydoesnothaveaformalinvestmentpolicythat limitsinvestmentmaturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromincreasinginterestrates. OtherinvestmentsasofJune30,2019wereasfollows:

Other Investments

Description Effective Fair Value

Maturity (Years)

Credit Rating

Domestic bond fund $ 434,032 6.4 N/AInternational bond fund 153,696 14.7 N/AEquity funds 1,807,440 N/A N/ASplit dollar life insurance 898,557 N/A AA- Total other investments $ 3,293,725

NOTE 3.RECEIVABLES UniversityreceivablesreportedintheStatementNetPositionasofJune30,2019,wereasfollows:

University Receivables

Description Current Noncurrent Total Accounts receivable $ 27,765,438 $ — $ 27,765,438Grants and contracts receivable 26,865,858 — 26,865,858Notes receivable — 207,692,844 207,692,844Contributions receivable, net 1,011,361 1,160,076 2,171,437Interest and income receivable 2,836,579 — 2,836,579Student loans receivable 3,382 6,171,497 6,174,879 Total university receivables $ 58,482,618 $ 215,024,417 $ 273,507,035

Accountsreceivablearereportednetofallowancesfordoubtfulaccountsof$627,021basedoncreditlossesexperiencedinprioryearsandevaluationofcurrentportfolios.Studentpaymentallowancesof$314,000,parkingservicesallowancesof$262,585,emergencymedicalserviceallowancesof$37,463,SullivanCenterallowancesof$7,973,andtelecommunicationsallowancesof$5,000comprisethisamount.Contributionsreceivablearereportednetofallowancesforcurrentuncollectiblepledgesof$277,326andallowancesfornoncurrentuncollectiblepledgesof$197,226. AccountsreceivablefortheyearendedJune30,2019,werecomprisedofthefollowingbalances:

Accounts ReceivableDescription AmountStudents/scholarships $ 7,184,739State capital appropriations 4,253,757Auxiliaries 13,394,914Fees 1,284,416Computer services 88,446Educational programs 991,598Other 567,568 Total accounts receivable $ 27,765,438


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Grants and contracts receivable are comprised of amounts due for sponsored research projects, federal land-grantappropriations,andfederalscholarshipprograms. Grantsandcontracts receivable for theyearendedJune30,2019,werecomprisedofthefollowingbalances:

Grants and Contracts Receivable

Description Federal State Local Nongovernmental TotalSponsored research $ 19,037,176 $ 1,368,235 $ 94,172 $ 2,306,838 $ 22,806,421Land-grant appropriations 1,425,082 — — — 1,425,082Scholarship programs 2,634,355 — — — 2,634,355 Total grants and contracts receivable $ 23,096,613 $ 1,368,235 $ 94,172 $ 2,306,838 $ 26,865,858

ContributionsreceivablearecomprisedofpledgesforgiftstosupportspecificallyidentifiedUniversityprogramsandtoprovideathleticscholarships.Contributionsreceivableareaccountedforattheirestimatednetrealizablevalue,orthepresentvalueoflong-termpledgesandreductionsforallowancesforuncollectiblepledges.Pledgesvaryfromonetotenyears.

Contributions Receivable

Description Current Noncurrent Total University programs $ 1,011,361 $ 1,160,076 $ 2,171,437 Total contributions receivable $ 1,011,361 $ 1,160,076 $ 2,171,437

Part II, Section 9 of the 1998-99StateAppropriationsActamendedtheSouthCarolinaCodeofLawsbyaddingSection59-101-410.Thisamendmentallowedthegoverningboardsofstate-supporteduniversitiestolendtheirendowmentandauxiliaryenterprisefundsondepositwiththeStateTreasurer’sOfficetoseparatelycharterednot-for-profitlegalentitieswhoseexistenceisprimarilyprovidingfinancialassistanceandothersupporttotheinstitutionanditseducationalprogram. Accordingly, as of June 30, 2019, theUniversity hadnotesreceivablefromtheClemsonUniversityFoundation,arelatedparty, totaling$207,692,844. Thisamount includestheoriginalloanof$35,358,188,additionalnetcontributionstotaling $47,913,092 since the fiscal year 1999 originalloan, plus related income and appreciation. Funds loanedto theClemsonUniversityFoundationwillbepaidbacktotheUniversitywith interestata rateequal to thatwhich isnecessarytoproduceasumwhichisequaltothetotalreturn(consistingofappreciationandincome),provided,however,suchratewillnotbelessthanzero. TheMemorandumofUnderstandingbetweenClemsonUniversityandtheClemson

UniversityFoundationisforaten-yearperiod.Itisreviewedannuallybybothpartiesandmaybeextendedautomaticallyforanadditionaltwelve-monthperiodunlesseitherpartyprovideswrittennoticeofobjection to theextension, inwhichcase,theMemorandumofUnderstandingwill not automaticallyextendforanadditionaltwelve-monthperiod.Theabovenot-withstanding,eitherpartymayterminatetheMemorandumofUnderstandingatanytimewithoutcauseupononehundredeightydayswrittennoticetotheotherparty. Withminorexceptions,lossesforloanstostudentsarenot estimated or recorded in allowances for uncollectibleaccounts.Atthetimealoanisconsidereduncollectibleitischargedtoprincipal.Anyaccountsreceivablewrittenoffisrecognizedintheperiodinwhichthereceivableisconsidereduncollectible.Basedonpastexperience,potentiallossesarenotdeemedmaterial. Interestandincomereceivableconsistsofamountsduefrom theStateTreasurer relating to holdings in theState’sinternalcashmanagementpoolandcashinvestedinvariousshort-terminvestmentsbythatagency.

NOTE 4.CAPITAL ASSETS CapitalassetactivityfortheyearendedJune30,2019,issummarizedasfollows:

Capital Assets

Description

BeginningBalance

July 1, 2018 Increases Decreases Transfers

EndingBalance

June 30, 2019

Capital assets not being depreciated: Land and improvements $ 34,276,726 $ 110,602 $ 14,600 $ — $ 34,372,728 Construction in progress* 279,696,208 81,087,313 1,297,557 (250,359,097) 109,126,867 Total capital assets not being depreciated 313,972,934 81,197,915 1,312,157 (250,359,097) 143,499,595

Depreciable capital assets: Utilities systems and other non-structural

improvements 77,397,052 2,440,270 — 27,931,163 107,768,485 Buildings and improvements 1,280,698,168 19,046,945 787,356 222,427,934 1,521,385,691 Computer software 24,283,309 — — — 24,283,309 Equipment 333,935,798, 24,726,258 9,983,752 — 348,678,304 Vehicles 18,989,678 1,230,612 456,987 — 19,763,303 Total depreciable capital assets at

historical cost 1,735,304,005 47,444,085 11,228,095 250,359,097 2,021,879,092

Less accumulated depreciation for: Utilities systems and other non-structural

improvements 36,832,338 3,239,175 — — 40,071,513 Buildings and improvements 432,323,801 31,394,086 355,855 — 463,362,032 Computer software 23,076,837 1,194,958 — — 24,271,795 Equipment 208,873,892 21,901,235 8,897,676 — 221,877,451 Vehicles 13,040,795 1,616,985 456,987 — 14,200,793 Total accumulated depreciation 714,147,663 59,346,439 9,710,518 — 763,783,584

Depreciable capital assets, net 1,021,156,342 (11,902,354) 1,517,577 250,359,097 1,258,095,508

Capital assets, net $ 1,335,129,276 $ 69,295,561 $ 2,829,734 $ — $ 1,401,595,103

*Includescurrentfiscalyearcapitalizedinterestof$8,065,871 NOTE:TheUniversityreceived$1,282,537 inproceedsfromthesaleofcapitalassets

NOTE 5.


UNEARNED REVENUES, DEPOSITS AND FUNDS HELD FOR OTHERS Unearnedrevenuesconsistprimarilyofathleticticketsalesandrelatedfeesandunearnedstudentrevenuesforsummersession and fall semester. Thesemonieswere collected inadvanceandwerenotearnedatJune30,2019. Athleticsalesandrelatedeventreceiptsinclude:advancesales of football tickets and program advertising fees.Unearnedstudentrevenuesconsistmainlyofstudenttuitionandfees,roomandboard,andotherfeesrelatedtothelongsummersessionandfallsemester.Alsoincludedareamountsreceivedinadvanceforsponsoredresearchprograms. Feescollectedinadvanceformunicipalservices,contractcreditcourses,andvariousdepartmentalaccountscomprisetheremainingbalanceofunearnedrevenues.

Asummarylistingofunearnedrevenuefollows:

Unearned Revenues

Description Amount Athletic event receipts $ 27,055,600 Sponsored research programs 9,671,116 Academic and other fees 18,957,448 Educational programs 445,911 Public service programs 85,360, Other 573,394 Total unearned revenues $ 56,788,829

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Currentdepositsarecomprisedof:footballgameguaranteesandamountsduetotheAtlanticCoastConference,studentcampuscardbalances,fundsheldondepositforconcertpromoters,andmiscellaneousdepartmentalamounts.

Deposits

Description Current AmountAthletics $ 639,075Student campus card balances 234,360Miscellaneous departmental 145,817 Total deposits $ 1,019,252

Fundsheldforothersconsistofanoncurrentcomponent.ThefederalPerkinsloanliabilitybalancerepresentsthenoncurrentfundsheldforothers.

Funds Held for Others

Description Current Amount

Noncurrent Amount

Federal Perkins Loans $ — $ 6,951,851Amounts held in trust 1,159,172 — Total funds held for others $ 1,159,172 $ 6,951,851

NOTE 6. BONDS PAYABLE AtJune30,2019,bondspayableconsistedofthefollowing:

BONDS PAYABLE

DescriptionOriginal

DebtInterest Rate(outstanding)

MaturityDates

June 30, 2019Balance

Debt Retired inFiscal Year 2019

General Obligation Bonds Bonds dated 4/01/07 (Series 2007B) $ 14,000,000 2.50-4.00% 6/1/2021 $ 2,420,000 $ 1,125,000 Bonds dated 3/01/11 (Series 2011B) 62,370,000 4.125-5.00% 3/1/2031 10,000,000 2,430,000 Bonds dated 6/1/14 (Series 2014B) 33,030,000 3.00-5.00% 4/1/2034 27,100,000 1,245,000 Bonds dated 10/01/16 (Series 2016F) 52,395,000 2.00-5.00% 6/1/2036 48,590,000 1,950,000 Bonds dated 8/24/17 (Series 2017A) 120,885,000 2.25-5.00% 4/1/2037 115,855,000 2,665,000 Bonds dated 5/23/19 (Series 2019A) 5,635,000 3.00-5.00% 4/1/2039 5,635,000 —

209,600,000Revenue Bonds Bonds dated 12/1/05 (Series 2005) 22,130,000 4.25% 5/1/2020 705,000 680,000 Bonds dated 5/1/15 (Series 2015) 90,285,000 4.00-5.00% 5/1/2045 86,965,000 1,700,000 Bonds dated 12/1/15 (Series 2015B) 191,000,000 2.75-5.00% 5/1/2046 186,800,000 4,200,000

274,470,000Athletic Facilities Revenue Bonds Bonds dated 2/1/12 (Series 2012) 12,335,000 2.00-3.00% 5/1/2023 3,855,000 880,000 Bonds dated 12/1/14 (Series 2014A) 30,695,000 3.00-5.00% 5/1/2045 30,695,000 — Bonds dated 12/1/14 (Series 2014B) 9,240,000 2.40-4.00% 5/1/2027 5,985,000 860,000 Bonds dated 12/1/14 (Series 2014C) 10,545,000 2.00-5.00% 5/1/2025 8,035,000 815,000 Bonds dated 5/1/15 (Series 2015) 60,695,000 4.00-5.00% 5/1/2045 56,370,000 1,125,000 Bonds dated 12/1/15 (Series 2015B) 18,875,000 3.00-5.00% 5/1/2046 17,490,000 490,000 Bonds dated 1/1/18 (Series 2018A) 11,300,000 3.00-5.00% 5/1/2047 11,300,000 —

133,730,000 Subtotal bonds payable 617,800,000 20,165,000Plus unamortized bond premium 46,896,457 2,613,113Total Bonds Payable $ 664,696,457 $ 22,778,113


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BondsissuedbytheUniversityincludecertainrestrictivecovenants.GeneralObligationBondsoftheStatearebackedbythefullfaith,creditandtaxingpoweroftheState.Tuitionandmatriculation fees paid to theUniversity are pledgedfor the payment of principal and interest on these bonds.AuxiliaryRevenueBondsarepayablesolelyfromandsecuredbyapledgeofrevenuesoftheUniversity’shousingfacilities,bookstores,diningservices,parkingandvending,andfromadditionalfundsfromtheacademic“University”feeimposedbytheBoardofTrustees.AthleticFacilitiesRevenueBondsarepayablesolelyfromthenetrevenuesoftheUniversity’sAthleticDepartmentandthegrossreceiptsfromtheimpositionofanyadmissionsfeeandanyspecialstudentfee. TheUniversitypurchasedabondinsurancepolicypayabletothebondtrusteefortheRevenueBondsSeries2005.Theinsuranceguaranteespaymentofprincipalandinterestuntilalldebthasbeenretired. TuitionfeesforthefiscalyearendedJune30,2018were$42,004,109,whichresultsinalegalannualdebtservicelimitatJune30,2019of$37,803,698.Thisamountisequalto90%oftuitionfeescollectedforthepriorfiscalyear. TheSeries2005ImprovementandRefundingRevenueBondsmaturingpriortoMay1,2017,shallnotbesubjecttoredemptionpriortotheirstatedmaturities.TheSeries2005BondsmaturingonorafterMay1,2017,shallbesubjecttoredemptionattheoptionoftheBoardofTrustees.onorafterMay1,2016,inwholeorpart,atanytime,andifinpartinthosematuritiesdesignatedbytheUniversityandbylotwithinamaturity(butonlyinintegralmultiplesof$5,000)upon30daysnoticeattheparamountoftheprincipaltoberedeemed,plusaccruedinterestthereon. TheSeries2007BGeneralObligationBondsmaturingonandafterJune1,2018,aresubjecttoredemption,inwholeorinpart,atanytimeinanyorderofmaturitytobedeterminedbytheState,onandafterJune1,2017,atparplusaccruedinteresttothedatefixedforredemption. TheSeries 2011BGeneralObligationState InstitutionBondsmaturingonandafterMarch1,2022,aresubject toredemption,inwholeorinpart,atanytimeinanyorderofmaturitytobedeterminedbytheState,onandafterMarch1, 2021 at par plus accrued interest to the date fixed forredemption. TheSeries2012AthleticFacilitiesRefundingRevenueBondsmatureasserialbondsonMay1ofeachoftheyears2012through2023andarenotsubjecttoredemptionpriortomaturity.

TheSeries 2014BGeneralObligationState InstitutionBondsmatureonApril1ineachoftheyears2015through2034andarenotsubjecttoredemptionpriortomaturity. The Series 2014AAthletic FacilitiesRevenueBondsmatureonMay1ineachoftheyears2015through2045andaresubjecttoredemptionpriortomaturity. TheSeries 2014BTaxableAthleticFacilitiesRevenueBondsmatureonMay1ineachof theyears2015through2027andaresubjecttoredemptionpriortomaturity. TheSeries2014CAthleticFacilitiesRevenueRefundingBondsmatureonMay1ineachof theyears2015through2025andaresubjecttoredemptionpriortomaturity. The Series 2015BAthletic FacilitiesRevenueBondsmatureonMay1ineachoftheyears2016through2046andaresubjecttoredemptionpriortomaturity. The Series 2015BHigher EducationRevenueBondsmatureonMay1ineachoftheyears2016through2046andaresubjecttoredemptionpriortomaturity. TheSeries 2016FGeneralObligationState InstitutionBondsmatureonJune1ineachof theyears2018through2036andaresubjecttoredemptionpriortomaturity. TheSeries 2017AGeneralObligationState InstitutionBondsmatureonApril1ineachoftheyears2018through2037andaresubjecttoredemptionpriortomaturity. The Series 2018AAthletic FacilitiesRevenueBondsmatureonMay1ineachoftheyears2022through2047andaresubjecttoredemptionpriortomaturity. DuringthefiscalyearendingJune30,2019,theStateofSouthCarolina issuedonbehalfof theUniversity,GeneralObligation State InstitutionBonds, Series 2019A, in theamountof$5,635,000.TheSeries2019AGeneralObligationStateInstitutionBondswereissuedto(i)defraythecostsofconstructingandequippinganoutdoorfitnessandwellnesscenterand(ii)topaythecostsofissuanceofthebonds.TheSeries2019AbondsmaturingonorpriortoApril1,2029arenotsubjecttooptionalredemptionpriortotheirmaturity.TheSeries2019AbondsmaturingafterApril1,2029aresubjectto redemptionprior tomaturity.TheSeries2019AGeneralObligationBondsaresecuredbyapledgeof the full faith,credit, and taxing power of theState and are additionallysecuredbyapledgeoftherevenuesderivedfromthetuitionfeesoftheUniversity.The$748,890bondpremiumassociatedwiththisissuanceisbeingamortizedoverthetwenty-yearlifeofthebondsusingthestraight-linemethod.


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Allofthebondsarepayableinsemiannualinstallmentsplusinterest.AmountsincludinginterestrequiredtocompletepaymentoftheRevenuebonds,AthleticFacilitiesRevenuebonds,andGeneralObligationsbondsasofJune30,2019,areasfollows:

Revenue Bonds

Description Principal Interest Total Year Ending June 30 2020 $ 6,900,000 $ 11,232,164 $ 18,132,164 2021 6,505,000 10,892,451 17,397,451 2022 6,825,000 10,567,201 17,392,201 2023 7,170,000 10,225,951 17,395,951 2024 7,530,000 9,867,452 17,397,452 2025 through 2029 41,475,000 43,476,231 84,951,231 2030 through 2034 47,535,000 34,415,301 81,950,301 2035 through 2039 56,375,000 25,567,113 81,942,113 2040 through 2044 68,375,000 13,575,000 81,950,000 2045 through 2046 25,780,000 1,448,200 27,228,200 Total Revenue Bonds $ 274,470,000 $ 171,267,064 $ 445,737,064

Description Principal Interest Total Year Ending June 30 2020 $ 4,345,000 $ 5,253,704 $ 9,598,704 2021 4,535,000 5,063,554 9,598,554 2022 4,850,000 4,879,984 9,729,984 2023 5,040,000 4,718,784 9,758,784 2024 5,350,000 4,517,271 9,867,271 2025 through 2029 20,240,000 19,404,311 39,644,311 2030 through 2034 22,015,000 15,203,931 37,218,931 2035 through 2039 26,355,000 10,870,781 37,225,781 2040 through 2044 31,690,000 5,514,700 37,204,700 2045 through 2047 9,310,000 449,250 9,759,250 Total Athletic Facilities Revenue Bonds $ 133,730,000 $ 75,876,270 $ 209,606,270

Athletic Facilities Revenue Bonds

General Obligation Bonds

Description Principal Interest Total Year Ending June 30 2020 $ 10,240,000 $ 8,307,011 $ 18,547,011 2021 10,450,000 7,840,712 18,290,712 2022 10,770,000 7,349,212 18,119,212 2023 11,310,000 6,810,712 18,120,712 2024 11,875,000 6,245,213 18,120,213 2025 through 2029 68,510,000 22,098,213 90,608,213 2030 through 2034 62,550,000 9,215,994 71,765,994 2035 through 2039 23,895,000 1,384,819 25,279,819 Total General Obligation Bonds $ 209,600,000 $ 69,251,886 $ 278,851,886


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TheUniversityreportednetprincipalretirementsandinterestexpendituresrelatedtothebondsasfollowsfortheyearendedJune30,2019:

Principal Retirements and Interest Expenses

Bond Type Net Principal InterestGeneral obligation bonds $ 9,415,000 $ 7,034,745Revenue bonds 6,580,000 10,729,010Athletic facilities revenue bonds 4,170,000 5,001,870 Total Net Principal Retirements and Interest Expenses $ 20,165,000 $ 22,765,625

NOTE 7.LEASE OBLIGATIONS TheUniversityisobligatedundervariousoperatingleasesfortheuseofrealproperty(land,buildings,officespace)andequipmentandalsoisobligatedundercapitalleasesandinstallmentpurchaseagreementsfortheacquisitionofrealproperty.Allcapitalandoperatingleasesarewithpartiesoutsidestategovernment. Futurecommitmentsforcapitalleases(whichhereandontheStatementofNetPositionincludeotherinstallmentpurchaseagreements)andfornon-cancellableoperatingleaseshavingremainingtermsinexcessofoneyearasofJune30,2019,wereasfollows:

Capital and Operating Lease Commitments

Description Capital Leases

Operating Leases

Year Ending June 30: 2020 $ 919,125 $ 3,470,103 2021 914,381 2,978,058 2022 898,429 1,589,321 2023 690,925 1,303,411 2024 574,408 659,438 2025 through 2029 2,872,040 193,612 2030 through 2034 2,872,040 — 2035 through 2038 2,127,781 — Total minimum lease payments 11,869,129 $ 10,193,943 Less: Interest 181,224 Principal outstanding - Clemson University $ 11,687,905

Capital Leases TheCapitalLeasesarepayableinmonthlyinstallmentsandwillexpirein2038.Expendituresforfiscalyear2019were$919,125ofwhich$832,731wasprincipaland$86,394wasinterest.ThefollowingisasummaryofthecarryingvaluesoftheassetsheldundercapitalleasesatJune30,2019:

Assets Held Under Capital Lease

Description Value at Lease Inception

Accumulated Depreciation Net

Buildings $ 14,300,000 $ 3,455,834 $ 10,844,166 Equipment 1,391,260 302,749 1,088,511 Total assets held under capital lease $ 15,691,260 $ 3,758,583 $ 11,932,677


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Certaincapitalleasesprovideforrenewaland/orpurchaseoptions.Generallypurchaseoptionsatbargainpricesofonedollarareexercisableattheexpirationoftheleaseterms. InOctober 2012, theUniversity entered into a capitalleaseof$14,300,000atlessthan.1percentinterestwherebytheUniversity leasesspace in theGreenvilleOneBuildingfor a twenty-five year periodwhich began inMarch 2013andextendstoMarch2038.TheGreenvilleOneBuildingislocatedindowntownGreenville,SCandthespaceconsistsoffourfloorsandspaceonthegroundfloorandexclusiveuseofanexteriorgreenroof. TheUniversity entered into this leasewithClemsonUniversityLandStewardshipFoundation, Inc. (CULSF), acomponentunit.TheoutstandingliabilityonthisleaseasofJune30,2019is$10,710,141. In2018,theUniversityenteredintomultipleequipmentleaseswithPresidioTechnologyCapital. The outstandingliabilityontheseleasesasofJune30,2019total$483,972. In2019,theUniversityenteredintomultipleequipmentleaseswith PresidioTechnologyCapital.The outstandingliabilityontheseleasesasofJune30,2019total$493,792.

Operating Leases TheUniversity'snon-cancelableoperatingleaseshavingremaining terms ofmore than one year expire in variousfiscal years from 2019 through 2025. Certain operatingleasesprovide for renewaloptions forperiods fromone tofiveyearsattheirfairrentalvalueatthetimeofrenewal.AllagreementsarecancelableiftheStateofSouthCarolinadoesnotprovideadequatefundingbutthatisconsideredaremotepossibility.Inthenormalcourseofbusiness,operatingleasesaregenerallyrenewedorreplacedbyotherleases.Operatingleasesaregenerallypayableonamonthlybasis. InJanuary2012,ClemsonUniversityoriginallyenteredintoarealpropertyoperatingleasewithCULSF,acomponentunit, for space locate in the building at 3ResearchDrive,Greenville,SC,attheCU-ICARCampus.ThisagreementtoestablishacomponenttestinglaboratoryhasbeenextendedthroughApril 2022. Under this lease, theUniversity paidCULSF$151,074inthecurrentfiscalyear. In September 2011, the University entered into anagreementwithCULSF,acomponentunit,forspaceinthebuildinglocatedat3ResearchDrive,Greenville,SC,attheCU-ICARCampus.Thisagreementisonamonth-to-monthbasisandextendsindefinitely.Underthislease,theUniversitypaid$12,000inthecurrentfiscalyear.

InJune2014,theUniversityenteredintoarealpropertyoperatingleasewithCULSFforspaceinthebuildinglocatedat110DanielDrive,Clemson,SC.ThisleaseextendsthroughJune 2024.Under this lease, theUniversity paidCULSF$97,665thisfiscalyear. InJune2014,theUniversityenteredintoarealpropertyoperatingleasewithCULSFforspaceinthebuildinglocatedat114DanielDrive,Clemson,SC.ThisleaseextendsthroughJune 2024.Under this lease, theUniversity paidCULSF$42,500thisfiscalyear. InDecember 2015, theUniversity entered into a realpropertyoperatingleasewithCULSFforspaceinthebuildinglocatedat1ResearchDr.,Greenville,SC.Thisleaseextendsthrough June 2019. Under this lease, theUniversity paidCULSF$512,085thiscurrentfiscalyear. InOctober 2017, theUniversity entered into a realpropertyoperatingleasewithCULSFforspaceinthebuildinglocatedat1ResearchDr.,Greenville,SC.ThisleaseextendsthroughMarch2021.Underthislease,theUniversitypaidCULSF$296,168thiscurrentfiscalyear. InJune2018,theUniversityenteredintoarealpropertyoperatingleasewithCULFforpropertylocatedinSunset,SC.ThisleaseextendsthroughJune2025.Underthislease,theUniversitypaidCULSF$115,000thiscurrentfiscalyear. In thecurrentfiscalyear,ClemsonUniversity incurredexpensesof$97,807forofficecopiercontingentrentalsonacost-per-copybasis.


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NOTE 8. PENSION PLANS TheSouthCarolinaPublicEmployeeBenefitAuthority(PEBA),whichwas created July 1, 2012, administers thevariousretirementsystemsandretirementprogramsmanagedbyitsRetirementDivision.PEBAhasan11-memberBoardofDirectors,appointedbytheGovernorandGeneralAssemblyleadership,which serves as co-trustee and co-fiduciary ofthe systems and the trust funds. By law, theState FiscalAccountabilityAuthority (SFAA),which consists of fiveelectedofficials,alsoreviewscertainPEBABoarddecisionsregarding the funding of the SouthCarolinaRetirementSystems(Systems)andservesasaco-trusteeoftheSystemsinconductingthatreview.EffectiveJuly1,2017,theRetirementSystemFundingandAdministrationActof2017assignedthePEBABoardofDirectorsastheCustodianoftheRetirementTrust Funds and assigned SC PEBA and theRetirementSystemsInvestmentCommission(RSIC)asco-trusteesoftheRetirementTrustFunds. For purposes ofmeasuring the net pension liability,deferredoutflowsandinflowsofresourcesrelatedtopensions,and pension expense, information about the fiduciary netpositionoftheSystemsandadditionsto/deductionsfromtheSystemsfiduciarynetpositionhavebeendeterminedontheaccrualbasisofaccountingastheyarereportedbytheSystemsinaccordancewithgenerallyacceptedaccountingprinciples(GAAP). For this purpose, revenues are recognizedwhenearnedandexpensesarerecognizedwhenincurred.Benefitandrefundexpensesarerecognizedwhendueandpayableinaccordancewiththetermsoftheplan.Investmentsarereportedatfairvalue. PEBA issues a ComprehensiveAnnual FinancialReport(CAFR)containingfinancialstatementsandrequiredsupplementaryinformationfortheSouthCarolinaRetirementSystems’PensionTrustFunds.TheCAFRispubliclyavailablethroughtheRetirementBenefits’linkonPEBA’swebsiteatwww.peba.sc.gov,oracopymaybeobtainedbysubmittingarequesttoPEBA,202ArborLakeDrive,Columbia,SC29223.PEBAisconsideredadivisionoftheprimarygovernmentofthestateofSouthCarolinaandtherefore,retirementtrustfundfinancial informationisalsoincludedinthecomprehensiveannualfinancialreportofthestate.

Plan Descriptions TheSouthCarolinaRetirementSystem(SCRS),acost-sharingmultiple-employerdefinedbenefitpensionplan,wasestablishedeffectiveJuly1,1945,pursuanttotheprovisionsofSection9-1-20oftheSouthCarolinaCodeofLawsforthepurposeofprovidingretirementallowancesandotherbenefitsfor employees of the state, its public school districts, andpoliticalsubdivisions. The StateOptional Retirement Program (ORP) is adefinedcontributionplanthatisofferedasanalternativetocertainnewlyhiredstate,publicschool,andhighereducationemployees.StateORPparticipantsdirecttheinvestmentoftheirfundsintoaplanadministeredbyoneoffourinvestmentproviders.

TheSouthCarolinaPoliceOfficersRetirementSystem(PORS), a cost-sharingmultiple-employer defined benefitpensionplan,wasestablishedeffectiveJuly1,1962,pursuanttotheprovisionsofSection9-11-20oftheSouthCarolinaCodeofLawsforthepurposeofprovidingretirementallowancesandotherbenefitsforpoliceofficersandfiremenofthestateanditspoliticalsubdivisions.

Membership Membership requirements are prescribed inTitle 9 oftheSouthCarolinaCodeofLaws.Abriefsummaryoftherequirementsundereachsystemispresentedbelow. SCRS–Generally,allemployeesofcoveredemployersarerequiredtoparticipateinandcontributetothesystemasaconditionofemployment.Thisplancoversgeneralemployeesand teachers and individuals newly elected to the SouthCarolinaGeneralAssembly beginningwith theNovember2012generalelection.AnemployeememberofthesystemwithaneffectivedateofmembershippriortoJuly1,2012isaClassTwomember.AnemployeememberofthesystemwithaneffectivedateofmembershiponorafterJuly1,2012isaClassThreemember. StateORP –As an alternative tomembership in theSCRS,newlyhiredstate,publicschool,andhighereducationemployees and individuals newly elected to the SouthCarolinaGeneralAssembly beginningwith theNovember2012general electionhave the option to participate in theStateOptionalRetirementProgram(StateORP),whichisadefinedcontributionplan.StateORPparticipantsdirecttheinvestmentoftheirfundsintoaplanadministeredbyoneoffour investment providers. PEBAassumesno liability fortheStateORPbenefits.Rather,thebenefitsaretheliabilityof the investment providers. For this reason, StateORPprogramsarenotconsideredpartof the retirementsystemsforfinancial statementpurposes. Employee andEmployercontributionstotheStateORPareatthesameratesasSCRS.A direct remittance is required from the employers to themember’saccountwithinvestmentprovidersfortheemployeecontribution and a portionof the employer contribution (5percent). Adirect remittance is also required toSCRS forthe remainingportionof the employer contribution and anincidentaldeathbenefitcontribution,ifapplicable,whichisretainedbySCRS. PORS – To be eligible for PORSmembership, anemployeemustberequiredbythetermsofhisemployment,byelectionorappointment,topreservepublicorder,protectlifeandproperty,anddetectcrimes in thestate; topreventand control property destruction by fire; or to serve as apeaceofficeremployedbytheDepartmentofCorrections,theDepartmentofJuvenileJustice,ortheDepartmentofMentalHealth.ProbatejudgesandcoronersmayelectmembershipinPORS.MagistratesarerequiredtoparticipateinPORSforserviceasamagistrate.PORSmembers,otherthanmagistratesandprobate judges,mustalsoearnat least$2,000peryearanddevoteatleast1,600hoursperyeartothiswork,unlessexemptedby statute. An employeemember of the systemwithaneffectivedateofmembershippriortoJuly1,2012,


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isaClassTwomember.AnemployeememberofthesystemwithaneffectivedateofmembershiponorafterJuly1,2012isaClassThreemember.

Benefits Benefit terms are prescribed inTitle 9 of the SouthCarolinaCodeofLaws.PEBAdoesnothavetheauthoritytoestablishoramendbenefittermswithoutalegislativechangeinthecodeoflaws.Keyelementsofthebenefitcalculationincludethebenefitmultiplier,yearsofservice,andaveragefinalcompensation.Abriefsummaryofbenefittermsforeachsystemispresentedbelow.

SCRS –AClassTwomemberwhohasseparatedfromservicewithatleastfiveormoreyearsofearnedserviceiseligibleforamonthlypensionatage65orwith28yearscreditedserviceregardlessofage.Amembermayelectearlyretirementwithreducedpensionbenefitspayableatage55with25yearsofservicecredit.AClassThreememberwhohasseparatedfromservicewithatleasteightormoreyearsofearnedserviceiseligible for amonthlypensionupon satisfying theRule of90 requirement that the total of themember’s age and themember’screditableserviceequalsat least90years. BothClassTwoandClassThreemembersareeligibletoreceiveareduceddeferredannuityatage60iftheysatisfythefive-or eight-year earned service requirement, respectively. Anincidentaldeathbenefit is alsoavailable tobeneficiariesofactiveandretiredmembersofemployerswhoparticipateinthedeathbenefitprogram. Theannual retirementallowanceofeligible retireesortheir surviving annuitants is increasedby the lesser of onepercent or five hundred dollars every July 1. Only thoseannuitantsinreceiptofabenefitonJuly1oftheprecedingyearareeligibletoreceivetheincrease.Memberswhoretireundertheearlyretirementprovisionsatage55with25yearsofservicearenoteligibleforthebenefitadjustmentuntilthesecondJuly1afterreachingage60orthesecondJuly1afterthedatetheywouldhavehad28yearsofservicecredithadtheynotretired.

PORS–AClassTwomemberwhohasseparatedfromservicewithatleastfiveormoreyearsofearnedserviceiseligibleforamonthlypensionatage55orwith25yearsofserviceregardlessofage.AClassThreememberwhohasseparatedfromservicewithatleasteightormoreyearsofearnedserviceiseligibleforamonthlypensionatage55orwith27yearsofserviceregardlessofage.BothClassTwoandClassThreemembersareeligibletoreceiveadeferredannuityatage55withfiveoreightyearsofearnedservice,respectively. Anincidentaldeathbenefit is alsoavailable tobeneficiariesofactiveandretiredmembersofemployerswhoparticipateinthedeathbenefitprogram.Accidentaldeathbenefitsarealsoprovideduponthedeathofanactivememberworkingforacoveredemployerwhosedeathwasanaturalandproximateresultofaninjuryincurredwhileintheperformanceofduty.

The retirement allowance of eligible retirees or theirsurvivingannuitantsisincreasedbythelesserofonepercentoffivehundreddollarseveryJuly1.OnlythoseannuitantsinreceiptofabenefitonJuly1oftheprecedingyearareeligibletoreceivetheincrease.

Contributions Contributions are prescribed inTitle 9 of the SouthCarolina Code of Laws. Upon recommendation by theactuary in the annual actuarial valuation, thePEBABoardmayadoptandpresenttotheSFAAforapprovalanincreaseintheSCRSandPORSemployerandemployeecontributionrates,butanysuch increasemaynot result inadifferentialbetween theemployeeand totalemployercontribution ratethatexceeds2.9percentofearnablecompensationforSCRSand5percentforPORS.AnincreaseinthecontributionratesadoptedbytheBoardmaynotprovideforanincreaseofmorethanone-halfofonepercentinanyoneyear.IfthescheduledemployeeandemployercontributionsprovidedinstatuteortherateslastadoptedbytheBoardareinsufficienttomaintainathirtyyearamortizationscheduleoftheunfundedliabilitiesoftheplans,theBoardshallincreasethecontributionratesinequalpercentageamountsfortheemployerandemployeeasnecessarytomaintainthethirty-yearamortizationperiod;and,thisincreaseisnotlimitedtoone-halfofonepercentperyear. IfthemostrecentannualactuarialvaluationoftheSystemsforfundingpurposesshowsaratiooftheactuarialvalueofsystemassetstotheactuarialaccruedliabilityofthesystem(thefundedratio)thatisequaltoorgreaterthanninetypercent,thentheboard,effectiveonthefollowingJulyfirst,maydecreasethethencurrentcontributionratesuponmakingafindingthatthedecreasewillnotresultinafundedratiooflessthanninetypercent.Anydecreaseincontributionratesmustmaintainthe2.9and5percentdifferentialsbetweentheSCRSandPORSemployer and employee contribution rates respectively. Ifcontributionratesaredecreasedpursuanttothisprovision,andthemostrecentannualactuarialvaluationofthesystemshowsafundedratiooflessthanninetypercent,theeffectiveonthefollowingJulyfirst,andannuallythereafterasnecessary,theboardshallincreasethethencurrentcontributionratesuntilasubsequentannualactuarialvaluationofthesystemshowsafundedratiothatisequaltoorgreaterthan90percent. TheRetirementSystemFundingandAdministrationActincreases employer contribution rates to 14.41 percent forSCRSand16.84percent forPORS,effectiveJuly1,2017.Italsoremovesthe2.9percentand5percentdifferentialandincreasesandestablishesaceilingonemployeecontributionrates at 9 percent and 9.75 percent for SCRS and PORSrespectively.Theemployercontributionrateswillcontinuetoincreaseannuallyby1percentthroughJuly1,2022.Thelegislation’sultimatescheduledemployerrateis18.56percentforSCRS and21.24 percent forPORS. The amortizationperiod is scheduled tobe reducedoneyear foreachof thenext10yearstoatwenty-yearamortizationperiod.Therecentpensionreformlegislationalsochangesthelong-termfundedratiorequirementfromninetytoeighty-five.


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obe

Requiredemployeecontributionrates(1)areasfollows:Contribution Plan Fiscal Year 2019 Fiscal Year 2018SCRS EmployeeClassTwo 9.00% 9.00% EmployeeClassThree 9.00% 9.00%State ORP Employee 9.00% 9.00%PORS EmployeeClassTwo 9.75% 9.75% EmployeeClassThree 9.75% 9.75%

Requiredemployercontributionrates(1)areasfollows:Contribution Plan Fiscal Year 2019 Fiscal Year 2018SCRS EmployerClassTwo 14.41% 13.41% EmployerClassThree 14.41% 13.41% EmployerIncidentalDeathBenefit 0.15% 0.15%State ORP EmployerContribution(2) 14.41% 13.41% EmployerIncidentalDeathBenefit 0.15% 0.15%PORS EmployerClassTwo 16.84% 15.84% EmployerClassThree 16.84% 15.84% EmployerIncidentalDeathBenefit 0.20% 0.20% EmployerAccidentalDeathProgram 0.20% 0.20%

(1) CalculatedonearnablecompensationasdefinedinTitle9oftheSouthCarolinaCodeofLaws.(2) Of thisemployercontribution,5%ofearnablecompensationmustberemittedbytheemployerdirectly to theORPvendor t

allocatedtothemember’saccountwiththeremainderoftheemployercontributionremittedtotheSCRS.

For theyearendedJune30,2019, theUniversity’sSCRScontributions totaled$24,298,427. TheUniversity’sPORScontributionstotaled$795,272.TotalcontributionsdirectlytotheORPswereapproximately$9,089,634(excludingthesurcharge)fromClemsonUniversityasemployerandapproximately$16,361,341fromitsemployeesasplanmembers.TheremainingemployercontributionamountssenttoSCRS(excludingthesurcharge)were$17,386,625.

Net Pension Liability AtJune30,2019,theUniversityreportedliabilitiesof$630,618,329and$8,226,555foritsproportionatesharesoftheSCRSandPORSnetpensionliabilities,respectively.ThenetpensionliabilitiesweremeasuredasofJune30,2018,andthetotalpensionliabilitiesusedtocalculatethenetpensionliabilitiesweredeterminedbyanactuarialvaluationasofJuly1,2017projectedforwardtoJune30,2018.TheUniversity’sproportionatesharesofthenetpensionliabilitieswerebasedonaprojectionoftheUniversity’slong-termshareofcontributionstothepensionplansrelativetotheprojectedcontributionsofallparticipatingemployers,actuariallydetermined.TheUniversity’sproportionateshareoftheSCRSplanincreasedby0.108207%overtheprioryear.TheUniversity’sproportionateshareofthePORSplandecreasedby0.004022%fromtheprioryear.AtJune30,2019,theUniversity’sproportionatesharesoftheSCRSandPORSplanswere2.814404%and0.290328%respectively. FortheyearendedJune30,2019,theUniversityrecognizedpensionexpenseof$71,588,453and$1,177,502forSCRSandPORS,respectively. Thenetpensionliability(NPL)iscalculatedseparatelyforeachsystemandrepresentsthatparticularsystem’stotalpensionliabilitydeterminedinaccordancewithGASBNo.67lessthatSystem’sfiduciarynetposition.NPLtotals,asofJune30,2018,forSCRSandPORSarepresentedbelow.

System

TotalPensionLiability

Plan Fiduciary Net

Position

Employers’Net Pension

Liability (Asset)

Plan FiduciaryNet Position as a Percentageof the Total Pension Liability

SCRS $ 48,821,730,067 $ 26,414,916,370 $ 22,406,813,697 54.1%PORS 7,403,972,673 4,570,430,247 2,833,542,426 61.7%


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ThetotalpensionliabilityiscalculatedbytheSystems’actuary,andeachplan’sfiduciarynetpositionisreportedintheSystems’financialstatements.ThenetpositionliabilityisdisclosedinaccordancewiththerequirementsofGASB67intheSystems’notestothefinancialstatementsandrequiredsupplementaryinformation.LiabilitycalculationsperformedbytheSystems’actuaryforthepurposeofsatisfyingtherequirementsofGASBNos.67and68arenotapplicableforotherpurposes,suchasdeterminingtheplans’fundingrequirements.

Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions AtJune30,2019,theUniversityreporteddeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopensionsfromthefollowingsources:

South Carolina Retirement System

DescriptionDeferred Outflows

of ResourcesDeferred Inflows

of ResourcesUniversitycontributionssubsequenttothemeasurementdate $41,685,052 $—Differencesbetweenexpectedandactualexperience 1,138,343 3,711,014Assumptionchanges 25,019,408 —Netdifferencebetweenprojectedandactualearningsonpensionplaninvestments 10,017,385 —Differencesduetochangesinproportionateshareofcontributions 22,678,889 399,502 Totaloutflowsandinflowsofresources $ 100,539,077 $ 4,110,516

Police Officers Retirement System

DescriptionDeferred Outflows


of ResourcesUniversitycontributionssubsequenttothemeasurementdate $795,272 $—Differencesbetweenexpectedandactualexperience 253,473 —Assumpitoncharges 542,417 —Netdifferencebetweenprojectedandactualearningsonpensionplaninvestments 164,512 —Differenceduetochangesinproportionateshareofcontributions 257,704 79,153 Totaloutflowsandinflowsofresources $ 2,013,378 $ 79,153

The$41,685,052and$795,272reportedasdeferredoutflowsofresourcesrelatedtopensionsresultingfromUniversitycontributionspaidsubsequent to themeasurementdatefor theSCRSandPORSplans,respectively,duringtheyearendedJune30,2019willberecognizedasareductionofthenetpensionliabilitiesintheyearendingJune30,2019. OtheramountsreportedasdeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopensionswillbeamortizedasfollowsfortheSCRSandPORSplans,respectively:

SCRS PORS Year ended June 30: 2020 $ 32,816,030 $ 612,307 2021 23,945,477 444,607 2022 (1,408,100) 79,059 2023 (609,898) 2,980

Actuarial Assumptions and Methods Actuarialvaluationsinvolveestimatesofthereportedamountsandassumptionsabouttheprobabilityofoccurrenceofeventsfarintothefuture.Examplesincludeassumptionsaboutfutureemployment,mortality,andfuturesalaryincreases.Actuarialassumptionsandmethodsusedduringtheannualvaluationprocessaresubjecttoperiodicrevision,typicallywithanexperiencestudy,asactualresultsoveranextendedperiodoftimearecomparedwithpastexpectationsandnewestimatesaremadeaboutthefuture.SouthCarolinastatestatuterequiresthatanactuarialexperiencestudybecompletedatlastonceineachfive-yearperiod.AnexperiencereportontheSystemswasmostrecentlyissuedasofJuly1,2015. TheJune30,2018totalpensionliability,netpensionliability,andsensitivityinformationweredeterminedbytheSystems’consultingactuary,Gabriel,Roeder,SmithandCompany (GRS)andarebasedon theactuarialvaluationperformedasofJuly1,2017.Thetotalpensionliabilitywasrolled-forwardfromthevaluationdatetotheSystems’fiscalyearendedJune30,2018,usinggenerallyacceptedactuarialprinciples.


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ThefollowingtableprovidesasummaryoftheactuarialassumptionsandmethodsusedtocalculatethetotalpensionliabilityasofJune30,2018.

Actuarial cost method SCRS PORSActuarialassumptions: Actuarialcostmethod Entryagenormal Entryagenormal Investmentrateofreturn(1) 7.25% 7.25% Projectedsalaryincreases 3.0%to12.5%(variesbyservice)(1) 3.5%to9.5%(variesbyservice)(1)

Benefitadjustments lesserof1%or$500annually lesserof1%or$500annually

(1) includesinflationat2.25%

Thepost-retireemortality assumption is dependent upon themember’s job category andgender. Thebasemortalityassumptions, the2016PublicRetireesofSouthCarolinaMortality table (2016PRSC),wasdevelopedusing theSystems’mortalityexperience.ThesebaseratesareadjustedforfutureimprovementinmortalityusingpublishedScaleAAprojectedfromtheyear2016.AssumptionsusedindeterminationoftheJune30,2018totalpensionliabilityareasfollows:

Former Job Class Males FemalesEducators 2016-PRSC-Malesmultipliedby92% 2016-PRSC-Femalesmultipliedby98%

GeneralEmployeesandMembersof theGeneralAssembly 2016-PRSC-Malesmultipliedby100% 2016-PRSC-Femalesmultipliedby111%

PublicSafetyandFirefighters 2016-PRSC-Malesmultipliedby125% 2016-PRSC-Femalesmultipliedby111%

Long Term Expected Rate of Return Thelong-termexpectedrateofreturnonpensionplaninvestments,asusedintheJuly1,2015,actuarialvaluations,wasbaseduponthe30yearcapitalmarketsoutlookattheendofthethirdquarter2015.Thelong-termexpectedrateofreturnsrepresentassumptionsdevelopedusinganarithmeticbuildingblockapproachprimarilybasedonconsensusexpectationsandmarketbasedinputs.Expectedreturnsarenetofinvestmentfees. Theexpectedreturns,alongwiththeexpectedinflationrate,formthebasisfortherevisedtargetassetallocationadoptedbeginningJanuary1,2018.Thelong-termexpectedrateofreturnisproducedbyweightingtheexpectedfuturerealratesofreturnbythetargetallocationpercentageandaddingexpectedinflationandissummarizedinthetablebelow.Foractuarialpurposes,the7.25percentassumedannualinvestmentrateofreturnsetinstatuteandusedinthecalculationofthetotalpensionliabilityincludesa5.00percentrealrateofreturnanda2.25percentinflationcomponent.

Asset ClassTarget AssetAllocation

ExpectedArithmetic RealRate of Return

Long TermExpected

Portfolio RealRate of Return

GlobalEquity 47.0% GlobalPublicEquity 33.0% 6.99% 2.31% PrivateEquity 9.0% 8.73% 0.79% EquityOptionsStrategies 5.0% 5.52% 0.28%RealAssets 10.0% RealEstate(Private) 6.0% 3.54% 0.21% RealEstate(REITs) 2.0% 5.46% 0.11% Infrastructures 2.0% 5.09% 0.10%Opportunistic 13.0% GTAA/RiskParity 8.0% 3.75% 0.30% HedgeFunds(non-PA) 2.0% 3.45% 0.07% OtherOpportunisticStrategies 3.0% 3.75% 0.11%DiversifiedCredit 18.0% MixedCredit 6.0% 3.05% 0.18% EmergingMarketsDebt 5.0% 3.94% 0.20% PrivateDebt 7.0% 3.89% 0.27%ConservativeFixedIncome 12.0% CoreFixedIncome 10.0% 0.94% 0.09% CashandShortDuration(Net) 2.0% 0.34% 0.01% TotalExpectedRealReturn 100.0% 5.03% InflationforActuarialPurposes 2.25% TotalExpectedNominalReturn 7.28%


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Discount Rate Thediscountrateusedtomeasurethetotalpensionliabilitywas7.25percent.TheprojectionofcashflowsusedtodeterminethediscountrateassumedthatcontributionsfromparticipatingemployersinSCRSandPORSwillbemadebasedontheactuariallydeterminedratesbasedonprovisionsintheSouthCarolinaCodeofLaws.Basedonthoseassumptions,theSystem’sfiduciarynetpositionwasprojectedtobeavailabletomakeallprojectedfuturebenefitpaymentsofcurrentplanmembers.Therefore,thelong-termexpectedrateofreturnonpensionplaninvestmentswasappliedtoallperiodsofprojectedbenefitpaymentstodeterminethetotalpensionliability.

Sensitivity Analysis ThefollowingtablepresentstheUniversity’sproportionateshareofthenetpensionliabilitycalculatedusingthediscountrateof7.25percent,aswellaswhattheUniversity’sproportionateshareofthenetpensionliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(6.25percent)or1percentagepointhigher(8.25percent)thanthecurrentrate:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

System 1.00% Decrease (6.25%) Current Discount Rate (7.25%) 1.00% Increase (8.25%)SCRS $805,813,118 $630,618,329 $505,370,836PORS 11,090,426 8,226,555 5,880,806

Additional Financial and Actuarial Information DetailedinformationregardingthefiduciarynetpositionoftheplansadministeredbyPEBAisavailableintheSystems’auditedfinancialstatementsforthefiscalyearendedJune30,2018(includingtheunmodifiedauditopiniononthefinancialstatements).AdditionalactuarialinformationisavailableintheaccountingandfinancialreportingactuarialvaluationasofJune30,2018.

NOTE 9. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS TheSouthCarolinaPublicEmployeeBenefitAuthority(PEBA)wascreatedbytheSouthCarolinaGeneralAssemblyaspartofActNo.278effectiveJuly1,2012.PEBAisastateagency responsible for theadministrationandmanagementof the state’s employee insurance programs, other post-employmentbenefitstrustsandretirementsystemsandispartoftheStateofSouthCarolinaprimarygovernment. ThegoverningboardofPEBAisaboardof11members.Themembership composition is threemembers appointedby theGovernor, twomembers appointedby thePresidentProTemporeof theSenate, twomembersappointedbytheChairmanof theSenateFinanceCommittee, twomembersappointedby theSpeaker of theHouse ofRepresentativesandtwomembersappointedbytheChairmanoftheHouseWaysandMeansCommittee. Individualsappointed to thePEBAboardmustpossesscertainqualifications.MembersofthePEBAboardservefortermsoftwoyearsanduntiltheirsuccessorsareappointedandqualify. TermscommenceonJulyfirstofevennumberedyears.ThePEBAboardappointstheExecutiveDirector.ThelawsoftheStateandthepoliciesandproceduresspecifiedbytheStateforStateagenciesareapplicabletoallactivitiesofPEBA.Bylaw,theStateFiscalAccountabilityAuthority (SFFA),which consists of fiveelectedofficials,alsoreviewscertainPEBABoarddecisionsinadministeringtheStateHealthPlanandotherpost-employmentbenefits(OPEB).

Plan Descriptions TheOtherPost-EmploymentBenefitsTrustFunds(OPEBTrusts),collectivelyreferstotheSouthCarolinaRetireeHealthInsuranceTrust Fund (SCRHITF) and theSouthCarolinaLong-TermDisability InsuranceTrust Fund (SCLTDITF),wereestablishedbytheStateofSouthCarolinaasAct195,whichbecameeffectiveonMay2008. TheSCRHITFwascreatedtofundandaccountfortheemployercostsoftheState’sretireehealthanddentalplans.TheSCLTDITFwascreatedtofundandaccountfortheemployercostsoftheState’sBasicLong-TermDisabilityIncomeBenefitPlan. In accordance withAct 195, the OPEBTrusts areadministeredbythePEBA,InsuranceBenefitsandtheStateTreasureristhecustodianofthefundsheldintrust.TheBoardofDirectorsofPEBAhasbeendesignatedastheTrustee. TheOPEBTrusts are cost-sharingmultiple-employerdefinedbenefitplans. Article5of theStateCodeofLawsdefines the twoplans and authorizes theTrustee to at anytimeadjusttheplans,includingitsbenefitsandcontributions,as necessary to insure thefiscal stability of the plans. Inaccordancewith the South Carolina Code of Laws andthe annualAppropriationsAct, the State provides post-employmenthealthanddentalandlong-termdisabilitybenefitstoretiredStateandschooldistrictemployeesandtheircovereddependents.


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Benefits TheSCRHITF is a healthcare plan that covers retiredemployees of the State of SouthCarolina, including allagencies,andpublicschooldistricts.TheSCRHITFprovideshealth and dental insurance benefits to eligible retirees.Generally,retireesareeligibleforthehealthanddentalbenefitsiftheyhaveestablishedatleasttenyearsofretirementservicecredit.FornewhiresbeginningemploymentMay2,2008andafter,retireesareeligibleforbenefitsiftheyhaveestablished25years of service for 100%employer funding and15-24yearsofservicefor50%employerfunding. TheSCLTDITFisalong-termdisabilityplanthatcoversemployees of the State of SouthCarolina, including allagenciesandpublicschooldistrictsandallparticipatinglocalgovernmental entities. TheSCLTDITFprovides disabilitypaymentstoeligibleemployeesthathavebeenapprovedfordisability.

Contributions and Funding Policies Section1-11-710of theSouthCarolinaCodeofLawsof 1976, as amended, requires these postemployment andlong-term disability benefits to be funded through annualappropriationsbytheGeneralAssemblyforactiveemployeesto thePEBA, InsuranceBenefits andparticipating retireestoPEBA,exceptfortheportionfundedthroughthepensionsurchargeandprovidedfromtheotherapplicablesourcesofthePEBA,InsuranceBenefits.ForactiveemployeeswhoarenotfundedbyStateGeneralFundappropriations,participatingemployers aremandatedbyState statute to contribute at arateassessedeachyearbytheDepartmentofAdministrationExecutiveBudgetOffice.ThecoveredpayrollsurchargefortheyearendedJune30,2019was5.50percent.TheSouthCarolinaRetirementSystemcollectsthemonthlysurchargefor all participating employers and remits it directly to theSCRHITF. Other sources of funding for the SCRHITFincludemandatorytransfersofaccumulatedPEBA,InsuranceBenefits’ reserves and incomegenerated from investments.Employer contributions also include the implicit subsidy,or age-related subsidy inherent in thehealthcarepremiumsstructure. The implicit subsidy represents a portionof thehealth care expenditures paid on behalf of the employer’sactiveemployees.ForpurposesofGASBStatementNo.75,thisexpenditureonbehalfoftheactiveemployeeisreclassifiedas a retiree health care expenditure so that the employer’scontributions towards the plan reflect the underlying age-adjusted,retireebenefitcosts. Basiclongtermdisabilitybenefitsarefundedthroughaperson’s premiumcharged toState agencies, public schooldistricts and other participating local governments.Themonthlypremiumperactiveemployeewas$3.22forthefiscalyearendedJune30,2019.TheSCLTDITFpremiumisbilledmonthlybyPEBA,InsuranceBenefitsandtransferredmonthlytotheSCLTDITF.Itisalsofundedthroughinvestmentincome. In accordancewithpart (b)ofparagraph69ofGASBStatementNo.75,participatingemployersshouldrecognize

revenueinanamountequaltotheemployer’sproportionateshareofthechangeinthecollectivenetOPEBliabilityarisingfromcontributionstotheOPEBplanduringthemeasurementperiodfromnon-employercontributingentitiesforpurposesotherthantheseparatefinancingofspecificliabilitiestotheOPEBplan.Therefore,employersshouldclassifythisrevenueinthesamemannerasitclassifiesgrantsfromotherentities. ForpurposesofmeasuringthenetOPEBliability,deferredoutflows and inflows of resources related toOPEB, andOPEBexpense,informationaboutthefiduciarynetpositionof theOPEBTrusts, and additions to anddeductions fromtheOPEBTrustsfiduciarynetpositionhavebeendeterminedonthesamebasisastheywerereportedbytheOPEBTrusts.Forthispurpose,revenuesarerecognizedwhenearnedandexpensesarerecognizedwhenincurred.Therefore,benefitandadministrativeexpensesarerecognizedwhendueandpayable.Investmentsarereportedatfairvalue. PEBA, Insurance Benefits issues audited financialstatements and required supplementary information for theOPEBTrustFunds. This information ispublicly availablethrough the InsuranceBenefits’ linkonPEBA’swebsite atwww.peba.sc.govoracopymaybeobtainedbysubmittingarequesttoPEBA,InsuranceBenefits,202ArborLakeDrive,Columbia, SC 29223. PEBA is considered a division oftheprimarygovernmentof thestateofSouthCarolinaandtherefore,OPEBTrust fund financial information is alsoincludedinthecomprehensiveannualfinancialreportofthestate. For the year ended June 30, 2019, theUniversity’sSCRHITFcontributionstotaled$22,614,074.TheUniversity’sSCLTDITFcontributionstotaled$178,729.TheUniversity’sproportionateshareoftheimplicitsubsidyrecognizedfortheyearendedJune30,2019was$65,127.

Net OPEB (Retiree Health Benefit) LiabilityAt June30, 2019 theUniversity reported liabilities of

$588,089,053and$74,025foritsproportionatesharesoftheSCRHITFandSCLTDITFnetOPEBliabilities,respectively.At June 30, 2019, theUniversity’s proportionate shares oftheSCRHITF andSCLTDITFplanswere 4.150069%and2.418150%respectively.FortheyearendedJune30,2019,theUniversityrecognizedOPEBexpenseof$35,133,223and$194,014fortheSCRHITFandSCLTDITFplans,respectively. TheNetOPEBLiability(NOL)iscalculatedseparatelyfor eachOPEBTrust Fund and represents that particularTrust’sTotalOPEBLiability(TOL)determinedinaccordancewithGASBNo. 74 less thatTrust’sfiduciarynet position.The allocation of each employer’s proportionate share ofthe collectiveNetOPEBLiability and collectiveOPEBExpensewasdeterminedusingtheemployer’spayroll-relatedcontributions over themeasurement period. Thismethodis expected to be reflective of the employer’s long-termcontribution effort aswell as be transparent to individualemployersandtheirexternalauditors.


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ThefollowingtablerepresentsthecomponentsofthenetOPEBliabilityasofJune30,2019:

OPEB TrustTotal

OPEB LiabilityPlan Fiduciary

NetPositionNet OPEBLiability

Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability

SCRHITF $ 15,387,115,010 $ 1,216,530,062 $ 14,170,584,948 7.91%SCLTDITF 39,261,091 36,199,863 3,061,228 92.20%

TheTOLiscalculatedbytheTrusts’actuary,andeachTrust’sfiduciarynetpositionisreportedintheTrust’sfinancialstatements.TheNOLisdisclosedinaccordancewiththerequirementsofGASBNo.74intheTrusts’notestothefinancialstatementsandrequiredsupplementaryinformation.LiabilitycalculationsperformedbytheTrusts’actuaryforthepurposeofsatisfyingtherequirementsofGASBNos.74and75andarenotapplicableforotherpurposes,suchasdeterminingtheTrusts’fundingrequirements.

Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB AtJune30,2019,theUniversityreporteddeferredoutflowsofresourcesanddeferredinflowsorresourcesrelatedtopensionsfromthefollowingsources.

South Carolina Retiree Health Insurance Trust Fund (SCRHITF)

DESCRIPTION Deferred Outflows


of ResourcesUniversity contributions subsequent to the measurement date $ 22,614,074 $ —Investment experience 2,254,962 —Liability experience 8,809,840 204,907Assumption changes — 47,888,190Outstanding inflow balance between contribution and proportionate share 4,711,704 6,691 Total outflows and inflows of resources $ 38,390,580 $ 48,099,788

South Carolina Long-Term Disability Insurance Trust Fund (SCLTDITF)

DESCRIPTION Deferred Outflows


of ResourcesUniversity contributions subsequent to the measurement date $ 178,729 $ —Investment experience 43,002 —Liability experience — 4,527Assumption changes — 4,823Outstanding inflow balance between contribution and proportionate share — 4,880 Total outflows and inflows of resources $ 221,731 $ 14,230

ThenetamountofdeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtoretireehealthbenefitswillbeamortizedasfollowsfortheSCRHITFandSCLTDITFplans,respectively:

SCRHITF SCLTDITF Year ended June 30: 2020 $ (6,263,042) $ 10,471 2021 (6,263,042) 10,471 2022 (6,263,042) 10,471 2023 (6,504,512) 5,190

2024 and thereafter (7,029,645) (7,831)

Actuarial Assumptions and Methods Actuarialvaluationsofanongoingplaninvolveestimatesofthevalueofreportedamountsandassumptionsabouttheprobabilityofoccurrenceofeventsfarintothefuture. Examplesincludeassumptionsaboutfutureemployment,mortality,andthehealthcarecosttrend.Actuariallydeterminedamountsaresubjecttocontinualrevisionasactualresultsarecomparedwithpastexpectationsandnewestimatesaremadeaboutthefuture.Theschedulesoffundingprogress,presentedasrequiredsupplementaryinformationfollowingthenotestothefinancialstatements,presentmulti-yeartrendinformationaboutwhethertheactuarialvaluesofplanassetsareincreasingordecreasingovertimerelativetotheactuarialaccruedliabilitiesforbenefits. Projectionsofbenefitsforfinancialreportingpurposesarebasedonthesubstantiveplans(asunderstoodbytheemployerandplanparticipants)andincludethetypesofbenefitsprovidedatthetimethevaluationandthehistoricalpatternofsharingofbenefitcostsbetweentheemployerandplanmemberstothatpoint.Theactuarialmethodsandassumptionsusedincludetechniquesthataredesignedtoreducetheeffectsofshort-termvolatilityinactuarialaccruedliabilitiesandtheactuarialvalueofassets,consistentwiththelong-termperspectiveofthecalculations.


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AdditionalinformationasofthelatestactuarialvaluationforSCRHITF:

Actuarial Assumptions SCRHIFTValuationdate: June30,2017

Actuarialcostmethod: Entryagenormal

Inflation: 2.25%

Investmentrateofreturn: 4.00,netofOPEBPlaninvestmentexpense,includinginflation

Singlediscountrate: 3.62%asofJune30,2018

Demographicassumptions: BasedontheexperiencestudyperformedfortheSouthCarolinaRetirementSystemsforthe5-yearperiodendingJune30,2015

Mortality:

Forhealthyretirees,the2016PublicRetireesofSouthCarolinaMortalityTableforMalesandthe2016RublicRetireesofSouthCarolinaMortalityTableforFemalesareusedwithfullygenerationalmortalityprojectionsbasedonScaleAAfromtheyear2016.Multipliersareappliedtothebasetablesbasedongenderandemploymenttype.

Healthcaretrendrate: Initial trendstartingat6.75%andgraduallydecreasing toanultimate trendrateof4.15%overaperiodof14years

Agingfactors: Basedonplanspecificexperience

Retireeparticipation79%forretireeswhoareeligibleforfundedpremiums59%participationforretireeswhoareeligibleforPartialFundedPremiums20%participationforretireeswhoareeligibleforNon-FundedPremiums

Notes: Therewerenobenefitchangesduringtheyear.Thediscountratechangedfrom3.59%asofJune30,2017to3.62%asofJune30,2018.

AdditionalinformationasofthelatestactuarialvaluationforSCLTDITF:

Actuarial Assumptions SCLTDITFValuationdate: June30,2017

Actuarialcostmethod: Entryagenormal

Inflation: 2.25%

Investmentrateofreturn: 4.00,netofPlaninvestmentexpense,includinginflation

Singlediscountrate: 3.91%asofJune30,2018

Salary, Termination, and RetirementRates:

BasedontheexperiencestudyperformedfortheSouthCarolinaRetirementSystemsforthe5-yearperiodendingJune30,2015

DisabilityIncidence: TheratesusedinthevaluationarebasedontheratesdevelopedfortheSouthCarolinaRetirementSystems pension plans

DisabilityRecovery: Forparticipantsinpayments,1987CGDTGroupDisability,foractiveemployees,60%wereassumedtorecoverafterthefirstyearand92%wereassumedtorecoverafterthefirsttwoyears

Offsets: 40%areassumedtobeeligibleforSocialSecuritybenefits;assumedpercentagewhowillbeeligibleforapensionplanoffsetvariesbasedonemployeegroup

Expenses: Thirdpartyadministrativeexpensesareincludedinthebenefitprojections

Notes: Therewerenobenefitchangesduringtheyear.Thediscountratechangedfrom3.87%asofJune30,2017to3.91%asofJune30,2018

TheactuarialvaluationwasperformedasofJune30,2017.UpdateprocedureswereusedtorollforwardthetotalOPEBliabilitytoJune30,2018.


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Long Term Expected Rate of Return Thelong-termexpectedrateofreturnsrepresentassumptionsdevelopedusinganarithmeticbuildingblockapproachprimarilybasedonconsensusexpectationsandmarketbasedinputs.Theexpectedreturns,alongwiththeexpectedinflationrate,formthebasisforthetargetassetallocationadoptedatthebeginningofthe2017fiscalyear.Thelong-termexpectedrateofreturnisproducedbyweightingtheexpectedfuturerealratesofreturnbythetargetallocationpercentageandaddingexpectedinflation.Thisinformationissummarizedinthefollowingtable:

AssetClassTargetAssetAllocation

Long-TermExpectedRealRateofReturn

AllocationWeightedLong-TermExpectedRealRateofReturn

U.S.DomesticFixedIncome 80.00% 2.09% 1.67%Cash 20.00% 0.84% 0.17% Total 100.00% 1.84%ExpectedInflation 2.25% TotalReturn 4.09%

InvestmentReturnAssumption 4.00%

Discount Rate TheSingleDiscountRateof3.62%wasusedtomeasurethetotalOPEBliabilityfortheSCRHITF.TheaccountingpolicyforthisplanistosettheSingleDiscountRateequaltotheprevailingmunicipalbondrate.Duetotheplan’sinvestmentandfundingpolicies,thedifferencebetweenablendeddiscountrateandthemunicipalbondratewouldbelessthanseveralbasispoints(severalhundredthsofonepercent). ASingleDiscountRateof3.91%wasusedtomeasurethetotalOPEBliabilityfortheSCLTDITF.ThisSingleDiscountRatewasbasedonanexpectedrateofreturnonplaninvestmentsof4.00%andamunicipalbondrate3.62%.TheprojectionofcashflowstodeterminethisSingleDiscountRateassumedthatemployercontributionswillremain$38.64peryearforeachcoveredactiveemployee.Basedontheseassumptions,theplan’sFiduciaryNetPositionandfuturecontributionsweresufficienttofinancethebenefitpaymentsthroughtheyear2037.Asaresult,thelong-termexpectedrateofreturnonplaninvestmentswasappliedtoprojectbenefitpaymentsthroughtheyear2037,andthemunicipalbondratewasappliedtoallbenefitpaymentsafterthatdate.

Sensitivity Analysis ThefollowingtablepresentstheUniversity’sproportionateshareoftheSCRHITFnetotherpostemploymentbenefits(OPEB)liabilitycalculatedusingthediscountrateof3.62percent,aswellaswhattheUniversity’sproportionateshareofthenetOPEBliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(2.62percent)or1percentagepointhigher(4.62percent)thanthecurrentrate:

Sensitivity of the SCRHITF Net OPEB Liability to Changes in the Discount Rate1.00% Decrease (2.62%)

$692,825,399Current Discount Rate (3.62%)

$588,089,0531.00% Increase (4.62%)

$503,663,266

RegardingthesensitivityoftheSCRHITF’snetOPEBliabilitytochangesinthehealthcarecosttrendrates,thefollowingtablepresentstheUniversity’sproportionateshareoftheSCRHITF’snetOPEBliability,calculatedusingtheassumedtrendratesaswellaswhattheUniversity’sproportionateshareoftheSCRHITF’snetOPEBliabilitywouldbeifwerecalculatedusingatrendratethatisonepercentloweroronepercenthigher.

1.00% Decrease$483,902,343

Current Healthcare CostTrend Rate$588,089,053

1.00% Increase$722,783,173

ThefollowingtablepresentstheUniversity’sproportionateshareoftheSCLTDITFnetOPEBliabilitycalculatedusingthediscountrateof3.91percent,aswellaswhattheUniversity’sproportionateshareofthenetOPEBliabilitywouldbeifitwerecalculatedusingadiscountratethatis1percentagepointlower(2.91percent)or1percentagepointhigher(4.91percent)thanthecurrentrate:

Sensitivity of the SCLTDITF Net OPEB Liability to Changes in the Discount Rate1.00% Decrease (2.91%)

$110,630

Current Discount Rate (3.91%)$74,025

1.00% Increase (4.91%)$38,300


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Additional Financial and Actuarial Information InformationcontainedintheseNotestotheSchedulesofEmployerAllocationoftheNetOPEBLiability,ContributionsfromNon-employerContributingEntities,andImplicitSubsidyandtheSchedulesofEmployerAllocationoftheOPEBExpenseandDeferredOutflowsandInflowsofResourcesRelatedtoOPEB(theSchedules)werecompiledfromtheOPEBTrustFundsauditedfinancialstatementsforthefiscalyearendedJune30,2018,andtheaccountingandfinancialreportingactuarialvaluationasofJune30,2018.AdditionalfinancialinformationsupportingthepreparationoftheSchedules(includingtheunmodifiedauditopiniononthefinancialstatementsandrequiredsupplementaryinformation)isavailableintheOPEBTrustFundsauditedfinancialstatements.EmployersareencouragedtoreviewIllustrationIIinAppendixCofGASBStatementNo.75,whichprovidesasamplefootnotedisclosureandrequiredsupplementaryinformationforacost-sharingmultiple-employerdefinedbenefitplan.

NOTE 10.DEFERRED COMPENSATION PLANS SeveraloptionaldeferredcompensationplansareavailabletoStateemployeesandemployersofitspoliticalsubdivisions.AllClemsonUniversityemployeesmayparticipateinthedeferredcompensationplans,exceptthoseinstudentemploymentpositions.CertainemployeesoftheUniversityhaveelectedtoparticipate.Themultiple-employerplans,createdunderInternalRevenueCodeSections457,401(k),and403(b),areadministeredbythirdpartiesandarenotincludedintheComprehensiveAnnualFinancialReportoftheStateofSouthCarolina.CompensationdeferredundertheSection401(k),457and403(b)plansisplacedintrustforthecontributingemployee.TheStatehasnoliabilityforlossesundertheplans.EmployeesmaywithdrawthecurrentvalueoftheircontributionswhentheyterminateStateemploymentifpermittedbytheplan.Eligibilityrulesandpenaltiesmayapply.Employeesmayalsowithdrawcontributionspriortoterminationiftheymeetrequirementsspecifiedbytheapplicableplan.InaccordancewithIRSregulationseffectiveJanuary1,2009,ClemsonUniversityadopteda403bplandocument.Undertheplan,loansandfinancialhardshipdistributionsarepermitted.Fifteenyearsofservicecatch-upcontributionsarenotpermitted.

NOTE 11.LONG-TERM LIABILITIES Long-termliabilityactivityfortheyearendedJune30,2019wasasfollows:

Long-Term Liabilities

Description July 1, 2018 Additions Reductions June 30, 2019Due WithinOne Year

Bonds payable and capital lease obligations: General obligation bonds $ 213,380,000 $ 5,635,000 $ 9,415,000 $ 209,600,000 $ 10,240,000 Revenue bonds 281,050,000 — 6,580,000 274,470,000 6,900,000 Athletic facilities revenue bonds 137,900,000 4,170,000 133,730,000 4,345,000 Subtotal bonds payable 632,330,000 5,635,000 20,165,000 617,800,000 21,485,000 Unamortized revenue bond premium 48,760,680 748,890 2,613,113 46,896,457 2,650,558 Total bonds payable 681,090,680 6,383,890 22,778,113 664,696,457 24,135,558 Capital leases payable 11,991,334 605,528 908,958 11,687,905 850,243 Total bonds and capital leases payable 693,082,014 6,989,418 23,687,071 676,384,362 24,985,801

Other liabilities: Accrued compensated absences 26,129,000 15,168,680 12,941,680 28,356,000 14,561,607 Funds held for others 6,871,002 80,849 — 6,951,851 — Net pension liability 617,272,251 105,849,432 84,276,798 638,844,885 — Net postemployment benefit liability 557,175,950 54,742,251 23,755,123 588,163,078 — Total other liabilities 1,207,448,203 175,841,212 120,973,601 1,262,315,814 14,561,607 Total long-term liabilities $ 1,900,530,217 $ 182,830,630 $ 144,660,672 $ 1,938,700,175 $ 39,547,408

AdditionalinformationregardingBondsandNotesPayableisincludedinNote6.AdditionalinformationregardingCapitalLeaseObligationsisincludedinNote7.Thebalanceinthelong-termliabilityaccount“Fundsheldforothers”representstheFederalliabilityforthePerkinsLoanprogram.


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NOTE 12.CONSTRUCTION COSTS AND COMMITMENTS Capitalized TheUniversityhasobtainedorhasplanstoobtainthenecessaryfundingfortheacquisition,construction,renovation,andequippingofcertainfacilitieswhichwillbecapitalizedintheapplicablecapitalassetcategoriesuponcompletion.ManagementestimatesthattheUniversityhassufficientresourcesavailableand/orfutureresourcesidentifiedtosatisfactorilycompletetheconstructionofsuchprojectswhichareexpectedtobecompletedinvaryingphasesoverthenext2or3yearsatanestimatedcostof$642,928,065The$642,928,065includesestimatedcostsof$236,738,905forcapitalprojectscurrently inprogressplus$406,189,160estimatedcostsforothercapitalprojectsalreadyinservice.Ofthetotalestimatedcost,$142,325,477wasunexpendedatJune30,2019.OfthetotalexpendedthroughJune30,2019,theUniversityhascapitalizedsubstantiallycompleteandinuseprojectsintheamountof$271,846,312.OftheunexpendedbalancetheUniversityhasremainingcommitmentbalancesof$66,148,660withcertainpropertyowners,engineeringfirms,constructioncontractors,andvendorsrelatedtotheseprojects.RetainagespayableonthesecapitalizedprojectsasofJune30,2019,was$2,140,289.CapitalprojectsatJune30,2019whichconstituteconstructioninprogressthataretobecapitalizedwhencompletedarelistedbelow.

Construction Costs and Commitments Approximate Cost

Amount ExpendedProject

College of Business School construction $ 87,500,000 $ 53,357,062Calhoun Energy Building addition 460,000 25,366Center for Human Genetics 950,000 807,143Chapel construction 5,000,000 341,321Child care facility construction 5,000,000 597,765Clemson Center renovations and upfit 995,000 157,661CURI EIC voltage capacity increase 1,242,600 837,313Daniel renovation and expansion 1,000,000 599,345Douthit Hills shell space upfit 250,000 43,034Duke Innovation Building upfit 125,000 32,517Electrical distribution upgrade 75,290,932 24,506,283Electrical infrastructure maintenance and improvements 1,118,674 1,118,674IPTAY Center expansion and renovation 12,000,000 6,939,347Jervey Championship Plaza 808,000 769,181Manufacturing Innovation Building 4,000,000 1,865,759Newman Road widening and construction 1,590,464 864,318Outdoor Fitness Wellness construction 12,500,000 5,858,396Perimeter Zeta Theta intersection 694,100 504,667Perimeter/Newman Road signalization 627,135 512,183Recycle operations 500,000 74,443Reeves Football Operations Center renovation 567,200 556,662SCBG Duck pond dock renovation 674,800 512,250SCDOT Bike Trail cost share 500,000 250,000Soccer Operations Complex construction 8,000,000 292,579Softball Complex construction 13,000,000 5,922,678WEP Tower and Chiller addition 1,470,000 1,341,719West Energy Plant Chiller #4 A 875,000 439,200 Total construction costs and commitments $ 236,738,905 $ 109,126,866

TheamountexpendedincludesonlycapitalizedprojectexpensesandcapitalizedinterestonconstructiondebtforprojectslessthansubstantiallycompleteandnotinserviceatJune30,2019.Nononcapitalizedexpendituresareincludedinthesetotals.

Non-Capitalized AtJune30,2019theUniversityhadinprogressothercapitalprojectswhichwillnotbecapitalizedwhencomplete.Theseprojectsareforreplacements,repairs,and/orrenovationstoexistingfacilities.Estimatedcostsonthesenon-capitalizedprojectstotal$70,456,965.Thisamountincludescostsincurredtodateof$40,510,190andestimatedcoststocompleteof$29,946,775.TheUniversityhasremainingcommitmentbalanceswithcertainpartiesrelatedtotheseprojectsof$6,436,971.Retainagespayableonthenon-capitalizedprojectsasofJune30,2019,was$147,900.TheUniversityanticipatesfundingtheseprojectsoutofcurrentresources,currentandfuturebondissues,statecapitalimprovementbondproceeds,privategiftsandstudentfees.


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NOTE 13.RELATED PARTIES CertainseparatelycharteredlegalentitieswhoseactivitiesarerelatedtothoseoftheUniversityexistprimarilytoprovidefinancialassistanceandothersupporttotheUniversityanditseducationalprogram. The activities of these entities are not included in theUniversity’sfinancialstatements.However,theUniversity’sstatementsincludetransactionsbetweentheUniversityanditsrelatedparties. In accordancewithGovernmentalAccountingStandardsBoard (GASB)Codification Sections 2100,Defining theFinancialReportingEntity,andSection2600,ReportingEntityandComponentUnitPresentationandDisclosure,managementannually reviews its relationshipswith the related partiesdescribedinthisnote.TheUniversityexcludedtheserelatedpartiesfromthereportingentitybecauseitisnotfinanciallyaccountableforthem. Followingisamoredetaileddiscussionofeachoftheseentities and a summary of significant transactions (if any)betweentheseentitiesandClemsonUniversity.

Clemson University Research Foundation TheClemsonUniversityResearchFoundation(CURF)is a separately chartered corporation established to solicitresearchgrantsandcontractsandthencontracttheUniversitytoperformtheresearch.CURF’sactionsaregovernedbyitsBoardofDirectors. TheUniversityperformsresearchanddevelopmentunderperformanceagreementsforCURF,andreceivespaymentforalldirectandindirectcostswhichareincurredinaccordancewith the terms of the performance agreements. Revenuestotaling$116,898fromCURFwererecordedbytheUniversityin the Statement ofRevenues, Expenditures andChangesinNet Position as operating nongovernmental grants andcontracts.GrantsandcontractsreceivableintheStatementofNetPositioninclude$52,055duefromCURFatJune30,2019. TheUniversity remitted $290,654 toCURF per theoperating agreement between the two entities. CURFreimbursedtheUniversity$35,478forsalariesfortimedevotedbyUniversityemployeestoCURF.

Clemson Alumni Association TheClemsonAlumniAssociationisaseparatelycharteredcorporationestablishedtoserveClemsonUniversityalumniand promote thewelfare and future development of theUniversity in its educational, scientific, and programmaticpurposes. TheAlumniAssociation contributed $1,080,445 totheUniversity, recognized as nonoperating gifts, to fundadministration, engagement,marketing, and events relatedto theAlumniAssociation. TheAlumniAssociation alsoreimbursedtheUniversity$15,971forsalariesfortimedevotedbyUniversityemployeesand$7,741ofotherexpenditures.TheUniversity administers contracts for licensingof classringsandsportsapparel.TheUniversityremitted$414,331totheAlumniAssociation,primarilyconsistingoflicensingroyalties,forthefiscalyearendingJune30,2019. Clemson University Continuing Education and Conference Complex Corporation The ClemsonUniversity Continuing Education andConferenceComplexCorporation(FinanceCorporation),isaseparatelycharteredcorporationestablishedinSeptember,1993,toconstruct,operateandmanagethegolfcourseandhotelcomponentsoftheClemsonUniversityContinuingEducationandConferenceComplex.TheFinanceCorporation’sactionsaregovernedbyitsBoardofDirectors.TheUniversitybilledtheFinanceCorporation$48,590forsalariesfortimedevotedbyUniversityemployeestotheFinanceCorporation.

Clemson Architectural Foundation The ClemsonArchitectural Foundation (CAF) is aseparatelycharteredeleemosynarycorporationestablishedtosupportandenrichtheprofessionalprogramsintheCollegeofArchitecture,Arts andHumanities. CAF’s actions aregovernedbyitsBoardofTrustees. TheUniversity’s financial statements reflect $854,804inexpensesprimarilytoreimburseCAFforadministrative,educational, and facilities expenses incurred at theCharlesE.DanielCenterforBuildingResearchandUrbanStudiesinGenoa,Italy,whichisownedbyCAF.

Clemson University Real Estate Foundation TheClemsonUniversityRealEstateFoundation, Inc.,isaseparatelycharteredentityorganizedtohold,andinvestacquiredrealestateproperty.TheRealEstateFoundation’sactionsaregovernedbyitsBoardofDirectors.ThisentityhadnotransactionswiththeUniversityanddidnotsignificantlyrequirethetimeorserviceofanyUniversityemployees.


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NOTE 14.TRANSACTIONS WITH STATE ENTITIES TheUniversityisgrantedanannualappropriationforoperatingpurposesasauthorizedbytheGeneralAssemblyoftheStateofSouthCarolina.Stateappropriationsarerecognizedasrevenuewhenreceivedandavailable.Amountsthatarenotexpendedbyfiscalyear-endlapseandarerequiredtobereturnedtotheGeneralFundoftheStateunlesstheUniversityreceivesauthorizationfromtheGeneralAssemblytocarrythefundsovertothenextyear. TheoriginalappropriationistheUniversity'sbasebudgetamountpresentedintheGeneralFundscolumnofSections14and45ofPartIAofthe2018-19AppropriationAct.ThefollowingisareconciliationoftheoriginalappropriationasenactedbytheGeneralAssemblytostateappropriationsrevenuereportedinthefinancialstatementsforthefiscalyearendedJune30,2019:

State Appropriations

Description Educational and General

Public Service Total

Original appropriation $ 85,303,811 $ 42,957,592 $ 128,261,403Allocation for health and dental plan contributions 726,943 263,734 990,677Allocation for SCRS and POS retirement contributions 602,793 300,423 903,216Appropriation allocations from the State Commission on Higher Education: For Academic Endowment Match 32,772 — 32,772 STEM Equipment Appropriation 290,993 — 290,993 Advanced Materials Appropriation 5,000,000 — 5,000,000 For Clemson Agriculture Education Teachers - teacher recruitment — 1,008,253 1,008,253 Total state appropriations $ 91,957,312 $ 44,530,002 $ 136,487,314

TheUniversityreceivedsubstantialfundingfromtheCommissiononHigherEducation(“CHE”)forscholarshipsonbehalfofstudentsthatareaccountedforasoperatingstategrantsandcontracts.AdditionalamountsreceivedfromCHEareaccountedforasbothoperatingandnonoperatingrevenues,dependingupontherequirementofdeliverableswithacurrentorpotentialfutureeconomicvalue.TheUniversityalsoreceivesStatefundsfromvariousotherStateagenciesforsponsoredresearchandpublicserviceprojects.FollowingisasummaryofamountsreceivedfromStateagenciesforscholarships,sponsoredresearch,capitalandpublicserviceprojectsforthefiscalyearendedJune30,2019:

Other Amounts Recognized from State Agencies

Description Operating Revenues

Nonoperating Revenues

Capital and Endowment

Proceeds TotalReceived from the Commission on Higher Education (CHE): LIFE Scholarships $ 29,356,764 $ — $ — $ 29,356,764 Palmetto Scholarships 31,109,136 — — 31,109,136 Need-Based Grants 2,590,991 — — 2,590,991 HOPE Scholarships 26,600 — — 26,600Received from the Department of Education - STEM 1,750,000 — — 1,750,000Received from the Department of Education - Other 635,897 — — 635,897Received from various other state agencies 4,791,456 — — 4,791,456Received from agencies outside South Carolina 493,162 — — 493,162Received from PEBA (nonemployer contributions for retiree health

care and LTD plans) 7,779,194 — — 7,779,194Lottery fund proceeds for Garrison Arena — — 6,800,000 6,800,000Capital reserve funding for Research Infrastructure — — 3,000,000 3,000,000State appropriated funds for CURI Grid Simulator — — 49,574 49,574 Total other amounts recognized from state agencies $ 78,533,200 $ — $ 9,849,574 $ 88,382,774

TheUniversityprovidednosignificantservicesfreeofchargetoanyStateagencyduringthefiscalyear;however,theUniversitydidprovidecomputerservicesandinformationsystemsdevelopmentforafeetootherStateagenciesduringthefiscalyear.Totalfeesreceivedwere$32,147,664comprisedof$449,937infeesforcomputerservicesclassifiedasotheroperatingrevenues,and$31,697,727ininformationandsystemsdevelopmentfeesclassifiedassalesandservicesofauxiliaryenterprises. Also,theUniversitycollectedandremitted$11,175inpesticidepenaltiesandotherfeestotheStateGeneralFund. ServicesreceivedatnocostfromStateagenciesincludemaintenanceofcertainaccountingrecordsbytheComptrollerGeneral;banking,bondtrusteeandinvestmentservicesfromtheStateTreasurer;legalservicesfromtheAttorneyGeneral;andgrantsservicesfromtheGovernor'sOffice.


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OtherservicesreceivedatnocostfromthevariousofficesoftheStateBudgetandControlBoardincludepensionplanadministration,insuranceplansadministration,auditservices,personnelmanagement,assistanceinthepreparationoftheStateBudget,reviewandapprovalofcertainbudgetamendments,procurementservices,andothercentralizedfunctions. TheUniversityhadfinancialtransactionswithvariousStateagenciesduringthefiscalyear.SignificantpaymentsweremadetodivisionsoftheStateBudgetandControlBoardforpensionandinsuranceplansemployeeandemployercontributions,insurancecoverage,officesupplies,andinteragencymail.Significantpaymentswerealsomadeforunemploymentandworkers'compensationcoverageforemployeestotheEmploymentSecurityCommissionandStateAccidentFund.Theamountsof2019expendituresapplicabletorelatedtransactionswithstateentitiesarenotreadilyavailable.

NOTE 15.RISK MANAGEMENT TheUniversity is exposed tovarious risksof loss andmaintainsStateorcommercialinsurancecoverageforeachofthoserisks.Managementbelievessuchcoverageissufficienttoprecludeanysignificantuninsuredlossesforthecoveredrisks.Therewerenosignificant reductions in insurancecoveragefromcoverageintheprioryear.Thecostsofsettledclaimshavenotexceededthiscoverageinanyofthepastthreeyears.TheUniversitypaysinsurancepremiumstocertainotherStateagenciesandcommercialinsurerstocoverrisksthatmayoccurinnormaloperations.Theinsurerspromisetopaytooronbehalfoftheinsuredforcoveredeconomiclossessustainedduringthepolicyperiodinaccordwithinsurancepolicyandbenefitprogramlimits. Statemanagement believes it ismore economical tomanagecertainrisksinternallyandsetasideassetsforclaimsettlement.SeveralStatefundsaccumulateassetsandtheStateitselfassumessubstantiallyallrisksforthefollowing:

(1) Claims of State employees for unemploymentcompensation benefits (Employment SecurityCommission);

(2) Claims of covered employees for workers’compensation benefits for job-related illnesses orinjuries(StateAccidentFund);

(3) Claims of covered public employees for healthand dental insurance benefits (Officeof InsuranceServices);and

(4) Claimsofcoveredpublicemployees for long-termdisability andgroup-life insurance benefits (OfficeofInsuranceServices).

EmployeeselecthealthcoveragethrougheitherahealthmaintenanceorganizationorthroughtheState’sself-insuredplan. All of the other coverages listed above are throughtheapplicableStateself-insuredplanexceptdependentandoptionallifepremiumsareremittedtocommercialcarriers. TheUniversityandotherentitiespaypremiums to theState’sInsuranceReserveFund(IRF)whichissuespolicies,accumulatesassetstocovertherisksofloss,andpaysclaimsincurredforcoveredlossesrelatedtothefollowingUniversityassets,activities,and/orevents:

(1) Theftof,damageto,ordestructionofassets;(2) Realproperty,itscontents,andotherequipment;(3) Motor vehicles, aircraft, andwatercraft (inland

marine);

(4) Torts;(5) Businessinterruptions;(6) Naturaldisasters;and(7) Medicalmalpracticeclaimsagainstcoveredinfirmaries

andemployees.

The IRF is a self-insurer andpurchases reinsurance tobtaincertainservicesandspecializedcoverageandtolimitossesintheareasofproperty,boilerandmachinery,automobileiability,andmedicalprofessionalliabilityinsurance.Also,heIRFpurchasesreinsuranceforcatastrophicpropertyandedicalprofessionalliabilityinsurance.Reinsurancepermitsartialrecoveryoflossesfromreinsurers,buttheIRFremainsrimarily liable. The IRFpurchases insurance for aircraftndoceanmarinecoverage.TheIRF’sratesaredeterminedctuarially.

State agencies and other entities are the primaryarticipantsintheState’sHealthandDisabilityInsuranceFundndintheIRF.

TheUniversity obtains coverage through commercialnsurersforemployeefidelitybondinsurance.Allemployeesre covered for $1,000,000 forCommercialCrime. Thisoverageincludesthefollowing:

(1) Blanketemployeedishonesty;(2) Forgery/alterations;(3) Theft,disappearanceofmoneyandsecurity;(4) Computerfraud;and(5)FaithfulPerformanceofduty

olltmppaapaiac

Inaddition,theCUExecutiveVicePresidentandChiefFinancialOfficeriscoveredfor$250,000underaspecificpublicofficialbond. CUManagerCash&TreasuryServices,CUDirectorofAccountingforRelatedOrganizations,PresidentandCEOforClemsonUniversityFoundation,ChiefFinancialOfficer andTreasurer forClemsonUniversityFoundation,SeniorFinancialAnalystandProjectManagerforClemsonUniversity Foundation,CUDirector of Student FinancialServices,BusinessOfficer for Finance andAdministrationforCUFoundationandCUExecutiveVicePresident&ChiefFinancialOfficerareeachcoveredundera$2,000,000bond. TheUniversityhasrecordedinsurancepremiumexpensesandexpensesfordeductiblesinapplicablefunctionalexpensecategories. TheUniversityhasnottransferredtheportionoftheriskof loss related to insurance policy deductibles, and policylimits for all coverage to a State or commercial insurer.


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TheUniversity has not reported an estimated claims lossexpenditure,andtherelatedliabilityatJune30,2019,basedontherequirementsofGASBStatement’sNo.10andNo.30,whichstatethataliabilityforclaimsmustbereportedonlyif information prior to issuance of thefinancial statementsindicatesthatitisprobablethatanassethasbeenimpairedoraliabilityhasbeenincurredonorbeforeJune30,2019,andtheamountofthelossisreasonablyestimable. Inmanagement’s opinion, claims losses in excess ofinsurance coverage are unlikely and, if incurred,wouldbe insignificant to the University’s financial position.Furthermore,thereisnoevidenceofassetimpairmentorotherinformation to indicate thata lossexpenditureand liabilityshouldberecordedatyear-end.Thereforenolossaccrualhasbeenrecorded.

Enterprise Risk Management Initiative ClemsonUniversity engages in an Enterprise RiskManagement(ERM)programdefinedbyTheCommitteeofSponsoringOrganizations(COSO)asa“process,effectedbyanentity’sboardofdirectors,managementandotherpersonnel,appliedinstrategy-settingandacrosstheenterprise,designedto identify potential events thatmay affect the entity, andmanagerisktobewithinitsriskappetite,toprovidereasonableassurance regarding the achievement of entity objectives”.TheBoardofTrusteesensuresappropriateERMframeworkis in place and functional to appropriatelymanage risks atanenterpriselevel.ThePresidentandExecutiveLeadershipTeamestablishesandmanagestheframeworkforasustainableenterpriseriskmanagementprocess.TheUniversity’sERMprocessincorporatesthefundamentalsofriskidentification,riskassessment,risktreatment,riskmonitoringandriskreview.

NOTE 16.CONTINGENCIES AND LITIGATION TheUniversityisinvolvedinanumberoflegalproceedingsandclaimswithvariouspartieswhicharoseinthenormalcourseofbusinessandcoverawiderangeofmatters.Because,intheopinionofmanagementandcounsel,theriskofmateriallossinexcessofinsurancecoveragefortheseitemsisremote,theoutcomeofthelegalproceedingsandclaimsisnotexpectedtohaveamaterialeffectonthefinancialpositionoftheUniversity.Therefore,anestimatedliabilityhasnotbeenrecorded. ThevariousfederalprogramsadministeredbytheUniversityforfiscalyear2019andprioryearsaresubjecttoexaminationbythefederalgrantoragencies.Atthepresenttime,amounts,ifany,whichmaybeduefederalgrantorshavenotbeendeterminedbuttheUniversitybelievesthatanysuchamountsintheaggregatewouldnothaveamaterialadverseeffectonthefinancialpositionoftheUniversity.Therefore,anestimatedlosshasnotbeenrecorded.

NOTE 17.OPERATING EXPENSES BY FUNCTION OperatingexpensesbyfunctionalclassificationfortheyearendedJune30,2019aresummarizedasfollows:

Operating Expenses by Function

Description

Compensation and Employee

Benefits

Servicesand

Supplies Utilities Depreciation

Scholarshipsand

Fellowships TotalInstruction $ 244,641,001 $ 37,311,219 $ 1,641,475 $ — $ 304,703 $ 283,898,398Research 122,979,917 57,430,690 2,051,277 — 1,838,722 184,300,606Public Service 52,913,336 19,346,935 1,455,440 — 216,250 73,931,961Academic Support 51,477,313 15,143,596 816,330 — 10,160 67,447,399Student Services 31,994,227 16,564,456 325,139 — 84,714 48,968,536Institutional Support 38,996,374 13,042,065 454,834 — — 52,493,273Operation and Maintenance 20,643,987 44,860,638 5,582,491 — — 71,087,116of PlantScholarships and Fellowships 4,816 177,223 — — 31,124,116 31,306,155Auxiliary Enterprises 68,500,054 115,689,607 8,220,588 — — 192,410,249Depreciation — — — 59,346,439 — 59,346,439

Total Operating Expenses by Function $ 632,151,025 $ 319,566,429 $ 20,547,574 $ 59,346,439 $ 33,578,665 $ 1,065,190,132


~ 69 ~

NOTE 18.DONOR-RESTRICTED ENDOWMENTS Ifadonorhasnotprovidedspecificinstructions,statelawpermitstheBoardofTrusteestoauthorizeforexpensethenetappreciation(realizedandunrealized)oftheinvestmentsofendowmentfunds.Anynetappreciationthatisspentisrequiredtobespentforthepurposesforwhichtheendowmentwasestablished. InaccordancewiththespendingpolicyadoptedbytheClemsonUniversityBoardofTrusteesin1998,endowment-derivedprogramexpensesarebasedontheendowmentcarryingvaluefromthepreviousyearatapercentagesetbytheBoard.Forfiscalyear2019,thisratewas4.0%.AtJune30,2019,netappreciationgainsof$25,840,303wererecorded,andwerereportedintheStatementofNetPositionasunrestricted.

NOTE 19.DETAILS OF RESTRICTED ASSETS ThepurposesandamountsofRestrictedAssetsareasfollows:

Details of Restricted Assets

Description AmountCurrent: Cash and cash equivalents: As specified by sponsors/donors $ 22,546,488 University administered loans 354,754 Payment of maturing debt 15,966,933 Unspent bond proceeds 84,571,876 Amounts restricted for capital projects 142,919,905 Funds held for others (159,667) Total current restricted assets $ 266,200,289

Noncurrent: Cash and cash equivalents: Endowments $ (23,417) Federal Perkins Loan Program 2,586,186 Total noncurrent restricted cash and cash equivalents $ 2,562,769

Student Loans Receivable: Total Federal Perkins Loan Program $ 6,171,497

NOTE 20. COMPONENT UNITS

Clemson University Foundation TheClemsonUniversityFoundation(CUF)isaseparatelycharteredcorporationorganizedexclusivelytopromotethedevelopmentandwelfareofClemsonUniversityinitseducationalandscientificpurposes. AsdiscussedinNote1,CUFhasbeenincludedinthereportingentityasacomponentunit.BecauseCUFisdeemednottobeagovernmentalentityandusesadifferentreportingmodel,itsbalancesandtransactionsarereportedonseparatefinancialstatements. CUFtransfersfundsearmarkedfromprivatecontributionstotheUniversitytosupportUniversityscholarship,fellowship,professorship,andresearchprogramsandtoreimbursetheUniversityforanypurchasesmadebyCUF.Thesetransfersforfiscalyear2019wererecordedbytheUniversityasnonoperatinggiftrevenuestotaling$26,301,087.CUFalsoreimbursedtheUniversity$946,903forsalariesfortimedevotedbyUniversityemployeestoCUFandtofundotherUniversityinitiatives. CUFhastwooperatingleaseswiththeUniversityandpaidatotalof$140,165forofficespaceduringfiscalyear2019.EquipmentdonatedbyCUFtotheUniversitytotaled$277,634andwasrecordedascapitalgrantsandgiftsintheStatementofRevenues,ExpensesandChangesinNetPosition.AlsorecordedascapitalgrantsandgiftsuponreceiptwereCUFdonationstotaling$4,041,189forUniversitybuildingprojects.AsofJune30,2019,CUFhadremainingcommitmentsofapproximately$1,587,400forUniversitybuildingprojects.


~ 70 ~

AsreferencedinNote3,a1999amendmenttotheSouthCarolinaCodeofLawsallowedstate-supporteduniversitiestolendendowmentbalancesondepositwiththeStateTreasurertoentities(likeCUF)whoseexistenceisprimarilyprovidingfinancialassistanceandothersupporttotheinstitutionanditseducationalprogram.Atfiscalyearend,theamountloaned,including income and appreciation, totaled $207,692,844.Current year income, gains, and appreciation on the loantotaled$11,524,608. CUFchargesanannualfeeof1.25percentformanagingtheUniversity’sendowments.ForthefiscalyearendingJune30, 2019, themanagement feewas $1,903,903. At fiscalyear-end,$475,976wasduetoCUFandrecordedinaccountspayable.Themanagementfeeisincludedinthecurrentyearincome,gainsandappreciationrecordedontheCUFloan. CUFinvestmentsecuritiesanddonatednegotiableassetsarestatedatfairvalueasdeterminedbyquotedmarketprices.Real estate investments are stated primarily at the currentappraisedvalue. CUF investment income, net of external and internalmanagementexpensesandfees,andgainsandlossesarisingfromthesaleorotherdispositionof investmentsandothernoncashassetsisdistributedtothevariousendowmentsusingapooledincomeapproach.Thisapproachdistributesincomefollowingthemarketvalueunitmethod,whichisbasedonthenumberofunitseachfundownsinthemanagedinvestmentpool. CUFEndowmentandboard-designatedfundsareinvestedonthebasisofatotalreturnpolicytoprovideincomeandtorealizeappreciationininvestmentvalues.Underthispolicy,earnings,nottoexceedaspecifiedpercentage,couldbeusedtosupporttheintendedpurposes.Anysuchearningsusedtosupporttheintendedpurposesareallocatedonlyfromthosefundswhichhaveamarketvalueinexcessofhistoricalvalue. AsummaryofinvestmentsatfairvalueatJune30,2019follows:

Investments

Description AmountMoney market funds $ 6,568,907Treasury/agency 48,213,193Mortgage backed securities 14,827,210Corporate bonds 17,437,839International bonds 742,824U.S. Equities 334,046,713Global equities 113,509,227Commodities 15,371,811Public real assets 399,995Hedge funds 117,375,743Private equity 75,226,202Private real assets 13,722,859Other 3,710,205 Subtotal - marketable investments 761,152,728Subordinated note receivable from Clemson University Real Estate Foundation, Inc. 20,000,000

Total Investments $ 781,152,728

Clemson University Land Stewardship Foundation TheClemsonUniversityLandStewardshipFoundation(CULSF)isaseparatelycharteredcorporationestablishedtoservetheneedsofClemsonUniversityinthemanagement,development, and investment of real property and related assets. CULSF’s activities are governed by itsBoard ofDirectors. As discussed inNote 1,CULSFhas been included inthereportingentityasacomponentunit.BecauseCULSFisdeemednottobeagovernmentalentityandusesadifferentreportingmodel,itsbalancesandtransactionsarereportedonseparatefinancialstatements. TheUniversity leases and utilizes several facilitiesowned and operated byCULSF. TheUniversity enteredintoacapitalleasewithCULSFforspaceintheGreenvilleOneBuilding indowntownGreenville. For thefiscalyearendingJune30,2019,$215,889waspaidbytheUniversitytoCULSFforcommonareamaintenancecostsand$1,064,613foroperatingleasesattheCU-ICARcampus.Capitallease-relatedprincipal, interest, andoperating expensepaymentstotaling$1,154,201werepaidtoCULSFfortheGreenvilleOne building.Additionally, $231,700was paid for spaceatCampHannonthatwillbeleasedbytheClemsonYouthLearningInstitute. CULSFreimbursedtheUniversity$223,626forsalariesfor time devoted by University employees to CULSF,managementservices,andotheroperatingexpenses.

IPTAY IPTAYisaseparatelycharteredcorporationestablishedexclusivelytosupportUniversityathletics.IPTAY’sactivitiesaregovernedbyitsBoardofDirectors. As discussed inNote 1, IPTAYhas been included inthereportingentityasacomponentunit.BecauseIPTAYisdeemednottobeagovernmentalentityandusesadifferentreportingmodel,itsbalancesandtransactionsarereportedonseparatefinancialstatements. InthefiscalyearbeginningJuly1,2014,IPTAYbeganoperating as an independent entity. Previously, althoughrecognized as a tax-exempt organization by the InternalRevenueService,allIPTAYreceiptsweredepositedthroughtheUniversityintoStateTreasurerbankaccountsandrelateddisbursementswerealsomadefromtheseaccounts.Duringthe fiscal year ended June 30, 2019, IPTAY contributed$57,567,642 to the University for qualifying athleticscholarships, operating expenses, capital project funding,anddebt serviceobligations. Asof June30,2019, IPTAYhadremainingcommitmentsofapproximately$3,516,967forUniversitybuildingprojects. AtJune30,2019,theStatementofNetPositionincludesaccountsreceivablefromIPTAYof$1,078,853andaccountspayableof$1,531,051duetoIPTAY.

~ 71 ~

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE UNIVERSITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

South Carolina Retirement System (SCRS)

University’s Proportionate

Share of the NetPension Liabillity


Share of the NetPension Liability

University’s Covered Employee Payroll During the

MeasurementPeriod

University’s Proportionate Share of the Net PensionLiabillity as a Percentage

of its Covered Payroll

Plan Fiduciary NetPosition as a

Percentage of the Total Pension

LiabilityFor the

Year2019 2.814404% $ 630,618,329 $ 377,798,791 166.92% 54.10%2018 2.706197% 609,208,463 359,507,113 169.46% 53.30%2017 2.649480% 565,925,017 336,425,269 168.22% 52.90%2016 2.657194% 503,949,653 326,390,137 154.40% 56.99%2015 2.601067% 447,817,506 308,864,854 144.99% 59.92%

Police Officers Retirement System (PORS)


Share of the NetPension Liabillity


Share of the NetPension Liability

University’s Covered Employee Payroll During the

MeasurementPeriod

University’s Proportionate Share of the Net PensionLiabillity as a Percentage



Percentage of the Total Pension

LiabilityFor the

Year2019 0.29033% $ 8,226,555 $ 4,095,825 200.85% 61.70%2018 0.29435% 8,063,788 3,991,757 202.01% 60.90%2017 0.28558% 7,243,538 3,716,102 194.92% 60.40%2016 0.26576% 5,792,207 3,358,977 172.44% 64.57%2015 0.26743% 5,119,734 3,238,913 158.07% 67.55%

~ 72 ~

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF UNIVERSITY CONTRIBUTIONS TO PENSION PLANS

South Carolina Retirement System (SCRS)

Statutorily RequiredContribution

Contributions Recognized by the

PlanContribution

Deficiency (excess)University’s Covered

Payroll

Contributions as a Percentage of Covered

PayrollFor the Year2019 $ 41,685,052 $ 41,685,052 $ — $ 392,634,667 10.62%2018 36,234,136 36,234,136 — 377,798,791 9.59%2017 31,566,642 31,566,642 — 359,507,113 8.78%2016 28,386,836 28,376,288 10,548 336,425,269 8.44%2015 27,147,096 27,156,699 (9,603) 326,390,137 8.32%2014 25,031,158 25,031,158 — 308,864,854 8.10%2013 24,089,283 24,089,283 — 292,367,473 8.24%2012 19,221,300 19,221,300 — 263,508,916 7.29%2011 18,869,713 18,869,713 — 258,961,093 7.29%2010 19,245,843 19,245,843 — 263,089,467 7.32%

Police Officers Retirement System (PORS)



PlanContribution


Payroll


PayrollFor the Year2019 $ 1,087,404 $ 1,087,404 $ — $ 4,852,489 22.41%2018 614,762 614,762 — 4,095,825 15.01%2017 564,457 564,457 — 3,991,757 14.14%2016 500,233 500,233 — 3,716,102 13.46%2015 441,480 441,508 (28) 3,358,977 13.14%2014 412,997 412,997 — 3,238,913 12.75%2013 364,346 364,346 — 2,973,675 12.25%2012 275,212 275,212 — 2,343,277 11.74%2011 247,568 247,568 — 2,143,665 11.55%2010 242,692 242,692 — 2,193,276 11.07%

~ 73 ~

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE UNIVERSITY'S PROPORTIONATE SHARE OF THE NET RETIREE HEALTHBENEFITS LIABILITY

South Carolina Retiree Health Care Plan


Share of the NetRetiree Health

BenefitsLiabillity

University’sProportionate


BenefitsLiability

University’sCovered Employee Payroll During the

MeasurementPeriod

University’s Proportionate Share of the Net Retiree

Health BenefitsLiabillity as a Percentage



Percentage of the Total Retiree Health

Benefit LiabilityFor the

Year2019 4.150069% $ 588,089,053 $ 381,894,616 153.99% 7.91%2018 4.113249% 557,132,840 363,498,870 153.27% 7.60%

South Carolina Basic Long-Term Disability Plan



Benefits Liabillity

University’sProportionate


BenefitsLiability

University’sCovered Employee Payroll During the

MeasurementPeriod*

University’s Proportionate Share of the Net Retiree

Health BenefitsLiabillity as a Percentage of its Covered Payroll*


Percentage of the Total Retiree Health

Benefit LiabilityFor the

Year2019 2.41815% $ 74,025 N/A N/A 92.20%2018 2.37784% 43,110 N/A N/A 95.29%

*Because contributions to the LTD plan are not based on a measure of pay, no measure of payroll should be presented (see paragraph 13 of GASB 85).

~ 74 ~

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF UNIVERSITY CONTRIBUTIONS TO RETIREE HEALTH BENEFIT PLANS

South Carolina Retiree Health Care Plan



PlanContribution


Payroll


PayrollFor the Year2019 $ 22,614,074 $ 22,614,074 $ — $ 397,487,156 5.69%2018 19,241,272 19,241,272 — 381,894,616 5.15%2017 16,929,079 16,929,079 — 363,498,870 5.09%2016 16,371,391 16,371,391 — 340,141,371 4.81%2015 15,850,629 15,850,629 — 329,749,114 4.81%2014 14,783,300 14,783,300 — 312,103,767 4.74%2013 12,988,807 12,988,807 — 295,341,148 4.40%2012 11,039,467 11,039,467 — 265,852,193 4.15%2011 9,955,435 9,955,435 — 261,104,758 3.81%2010 9,083,100 9,083,100 — 265,282,743 3.42%

South Carolina Basic Long-Term Disability Plan



PlanContribution


Payroll*


Payroll*For the Year2019 $ 178,729 $ 178,729 $ — N/A N/A2018 169,114 169,114 — N/A N/A2017 167,768 172,122 (4,354) N/A N/A2016 164,606 164,606 — N/A N/A2015 171,980 171,980 — N/A N/A2014 166,203 166,203 — N/A N/A2013 145,840 145,840 — N/A N/A2012 142,137 142,137 — N/A N/A2011 133,365 133,365 — N/A N/A2010 137,466 137,466 — N/A N/A

*Because contributions to the LTD plan are not based on a measure of pay, no measure of payroll should be presented (see paragraph 13 of GASB 85).

Statistical Section(unaudited)

~ 77 ~

Statistical Section This section of the Comprehensive Annual Financial Report provides additional information as a context for understanding what the information in the financial statements and note disclosures says about the University’s and the State of South Carolina’s overall financial health.

Contents

Financial Trends These schedules contain trend information to help the reader understand how the University’s financial

performance and well-being have changed over time.

Page

78

Debt Capacity 83 These schedules present information to help the reader assess the affordability of the University’s current

levels of outstanding debt and the University’s ability to issue additional debt in the future.

Operating Information 86 These schedules contain service and capital asset data to help the reader understand how the information in

the University’s financial report relates to the services the University provides and the activities it performs.

Demographic and Economic Information 92 These schedules offer demographic and economic indicators to help the reader understand the environment

within which the University’s and the State’s financial activities take place.

~ 78 ~

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,537

$ 51

3,40

1$

478,

991

$ 44

4,91

3$

419,

665

$ 38

4,70

3$

382,

789

$ 38

5,51

9

Serv

ices

and

supp

lies

319,

566

278,

228

265,

758

267,

423

262,

955

243,

893

219,

962

198,

747

182,

049

174,

958

Ut

ilitie

s20

,548

20,5

9319

,730

18,9

1019

,783

20,3

4417

,961

16,9

4617

,013

17,7

33

Depr

ecia

tion

59,3

4657

,491

51,7

5949

,872

49,3

1642

,974

32,7

1537

,162

35,0

0935

,164

Sc

hola

rshi

ps a

nd fe

llow

ship

s33

,579

30,6

6827

,269

27,7

2625

,411

23,8

4626

,380

20,9

4223

,402

9,17

5

Tota

l ope

ratin

g ex

pens

es1,

065,

190

1,00

4,33

592

1,05

387

7,33

283

6,45

677

5,97

071

6,68

365

8,50

064

0,26

262

2,54

9

Inte

rest

on

capi

tal a

sset

rela

ted

debt

23,4

1622

,056

21,4

7117

,091

7,34

15,

512

5,87

55,

799

6,03

45,

799

(G

ain)

loss

on

disp

osal

of c

apita

l ass

ets

1,54

082

61,

965

340

4,34

3(1

,200

)25

42,

255

791

464

Re

fund

s to

gran

tors

499

9012

071

137

178

515

381

296

95

Faci

litie

s and

adm

inis

trat

ive

rem

ittan

ces t

o th

e St

ate

280

252

317

450

375

413

339

386

450

185

To

tal n

onop

erat

ing

expe

nses

25,7

3523

,224

23,8

7317

,952

12,1

964,

903

6,98

38,

821

7,57

16,

543

Tota

l exp

ense

s$

1,09

0,92

5$

1,02

7,55

9$

944,

926

$ 89

5,28

4$

848,

652

$ 78

0,87

3$

723,

666

$ 66

7,32

1$

647,

833

$ 62

9,09

2

For t

he Y

ear E

nded

Jun

e 30

,(p

erce

nt o

f tot

al e

xpen

ses)

2018

-19

2017

-18

2016

-17

2015

-16

2014

-15

2013

-14

2012

-13

2011

-12

2010

-11

2009

-10

Expe

nses

:Compensationandem

ployeebenefits

58.1

%60

.1%

58.9

%57

.3%

56.5

%57

.0%

58.0

%57

.6%

59.2

%61

.3%

Se

rvic

es a

nd su

pplie

s29

.3%

27.2

%28

.1%

29.9

%31

.0%

31.2

%30

.4%

29.8

%28

.1%

27.8

%

Utili

ties

1.9%

2.0%

2.1%

2.1%

2.3%

2.6%

2.5%

2.5%

2.6%

2.8%

De

prec

iatio

n5.

4%5.

6%5.

5%5.

6%5.

8%5.

5%4.

5%5.

6%5.

4%5.

6%

Scho

lars

hips

and

fello

wsh

ips

3.1%

3.0%

2.9%

3.1%

3.0%

3.1%

3.7%

3.1%

3.6%

1.5%

To

tal o

pera

ting

expe

nses

97.8

%97

.8%

97.5

%98

.0%

98.6

%99

.4%

99.1

%98

.6%

98.9

%99

.0%

In

tere

st o

n ca

pita

l ass

et re

late

d de

bt2.

1%2.

1%2.

3%1.

9%0.

9%0.

7%0.

8%0.

9%0.

9%0.

9%

(Gai

n) lo

ss o

n di

spos

al o

f cap

ital a

sset

s0.

1%0.

1%0.

2%0.

0%0.

5%(0

.2)%

0.0%

0.3%

0.1%

0.1%

Re

fund

s to

gran

tors

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.1%

0.1%

0.0%

0.0%

Fa

cilit

ies a

nd a

dmin

istr

ativ

e

re

mitt

ance

s to

the

Stat

e0.

0%0.

0%0.

0%0.

1%0.

0%0.

1%0.

0%0.

1%0.

1%0.

0%

Tota

l non

oper

atin

g ex

pens

es2.

2%2.

2%2.

5%2.

0%1.

4%0.

6%0.

9%1.

4%1.

1%1.

0%To

tal e

xpen

ses

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

Sour

ce:

Cle

mso

n U

nive

rsity

Com

preh

ensi

ve A

nnua

l Fin

anci

al R

epor

ts.

~ 81 ~

SCH

EDU

LE O

F EX

PEN

SES

BY

FUN

CTI

ON

For t

he Y

ear E

nded

Jun

e 30

,(a

mou

nts

expr

esse

d in

thou

sand

s)20

18-1

920

17-1

820

16-1

720

15-1

620

14-1

520

13-1

420

12-1

320

11-1

220

10-1

120

09-1

0Ex

pens

es:

In

stru

ctio

n$

28

3,89

8$

26

8,18

8$

246

,756

$ 23

3,58

9$

227,

482

$ 21

6,97

7$

201,

731

$ 18

1,14

6$

178,

644

$ 17

5,24

9

Rese

arch

184,

301

171,

718

157,

485

146,

516

139,

399

133,

562

130,

787

123,

594

124,

837

126,

972

Pu

blic

serv

ice

73,9

3272

,480

68,7

6365

,362

65,8

1463

,542

59,8

3757

,890

59,0

8362

,390

Ac

adem

ic su

ppor

t67

,447

63,1

9753

,723

46,0

1847

,633

42,2

3138

,926

36,7

1535

,321

37,1

81

Stud

ent s

ervi

ces

48,9

6945

,581

40,6

7836

,540

37,3

4535

,578

26,6

9424

,685

27,2

8225

,316

In

stitu

tiona

l sup

port

52,4

9349

,605

41,3

8139

,267

42,3

8838

,019

34,6

4028

,925

25,4

9026

,389

Op

erat

ion

and

mai

nten

ance

of p

lant

71,0

8775

,139

68,4

4270

,664

77,1

5664

,116

62,7

5447

,505

42,9

0537

,435

Sc

hola

rshi

ps a

nd fe

llow

ship

s31

,306

28,4

6125

,467

26,0

0623

,773

22,1

1525

,179

19,5

0322

,143

8,12

4

Auxi

liary

ent

erpr

ises

192,

410

172,

475

166,

599

163,

498

126,

150

116,

856

103,

420

101,

375

89,5

4888

,329

De

prec

iatio

n59

,346

57,4

9151

,759

49,8

7249

,316

42,9

7432

,715

37,1

6235

,009

35,1

64

Inte

rest

on

capi

tal d

ebt

23,4

1722

,056

21,4

7117

,091

7,34

15,

512

5,87

55,

799

6,03

45,

799

(G

ain)

loss

on

disp

osal

of c

apita

l ass

ets

1,54

082

61,

965

340

4,34

3(1

,200

)25

42,

255

791

464

Re

fund

s to

gran

tors

499

9012

071

137

178

515

381

296

95

Faci

litie

s and

adm

inis

trat

ive

rem

ittan

ces t

o th

e St

ate

280

252

317

450

375

413

339

386

450

185

Tota

l exp

ense

s$

1,09

0,92

5$

1,02

7,55

9$

944,

926

$ 89

5,28

4$

848,

652

$ 78

0,87

3$

723,

666

$ 66

7,32

1$

647,

833

$ 62

9,09

2

For t

he Y

ear E

nded

Jun

e 30

,(p

erce

nt o

f tot

al e

xpen

ses)

2018

-19

2017

-18

2016

-17

2015

-16

2014

-15

2013

-14

2012

-13

2011

-12

2010

-11

2009

-10

Expe

nses

:

Inst

ruct

ion

26.2

%26

.1%

26.1

%26

.0%

26.8

%27

.8%

27.8

%27

.1%

27.7

%27

.9%

Re

sear

ch16

.9%

16.7

%16

.7%

16.4

%16

.4%

17.1

%18

.1%

18.5

%19

.3%

20.2

%

Publ

ic se

rvic

e6.

8%7.

1%7.

3%7.

3%7.

8%8.

1%8.

3%8.

7%9.

1%9.

9%

Acad

emic

supp

ort

6.2%

6.2%

5.7%

5.1%

5.6%

5.4%

5.4%

5.5%

5.5%

5.9%

St

uden

t ser

vice

s4.

5%4.

4%4.

3%4.

1%4.

4%4.

6%3.

7%3.

7%4.

2%4.

0%

Inst

itutio

nal s

uppo

rt4.

8%4.

8%4.

4%4.

4%5.

0%4.

9%4.

8%4.

3%3.

9%4.

2%

Oper

atio

n an

d m

aint

enan

ce o

f pla

nt6.

5%7.

3%7.

2%7.

9%9.

1%8.

2%8.

7%7.

1%6.

6%6.

0%

Scho

lars

hips

and

fello

wsh

ips

2.9%

2.8%

2.7%

2.9%

2.8%

2.8%

3.5%

2.9%

3.4%

1.3%

Au

xilia

ry e

nter

pris

es17

.6%

16.8

%17

.6%

18.3

%14

.9%

15.0

%14

.3%

15.2

%13

.8%

14.0

%

Depr

ecia

tion

5.4%

5.6%

5.5%

5.6%

5.8%

5.5%

4.5%

5.6%

5.4%

5.6%

In

tere

st o

n ca

pita

l deb

t2.

1%2.

2%2.

3%1.

9%0.

9%0.

7%0.

8%0.

9%0.

9%0.

9%

(Gai

n) lo

ss o

n di

spos

al o

f cap

ital a

sset

s0.

1%0.

1%0.

2%0.

0%0.

5%(0

.2)%

0.0%

0.3%

0.1%

0.1%

Re

fund

s to

gran

tors

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.1%

0.1%

0.0%

0.0%

Fa

cilit

ies a

nd a

dmin

istr

ativ

e

re

mitt

ance

s to

Stat

e0.

0%0.

0%0.

0%0.

1%0.

0%0.

1%0.

0%0.

1%0.

1%0.

0%To

tal E

xpen

ses

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

100.

0%10

0.0%

Sour

ce:

Cle

mso

n U

nive

rsity

Com

preh

ensi

ve A

nnua

l Fin

anci

al R

epor

ts.

~ 82 ~

SCH

EDU

LE O

F N

ET P

OSI

TIO

N A

ND

CH

AN

GES

IN N

ET P

OSI

TIO

N

For t

he F

isca

l Yea

r(a

mou

nts

expr

esse

d in

thou

sand

s)20

18-1

920

17-1

820

16-1

720

15-1

620

14-1

520

13-1

420

12-1

320

11-1

220

10-1

120

09-1

0To

tal r

even

ues (

from

sche

dule

of re

venu

es b

y so

urce

)$

1,13

6,71

8$

1,02

5,06

8$

970

,843

$ 8

70,9

30$

793

,988

$

805,

211

$ 7

54,7

77$

70

6,36

8$

717,

738

$ 68

9,69

8To

tal e

xpen

ses (

from

sche

dule

of e

xpen

ses b

y us

e an

d fu

nctio

n)(1

,090

,925

)(1

,027

,559

)(9

44,9

26)

(895

,284

)(8

48,6

52)

(1,2

27,4

96)

(723

,666

)(6

67,3

21)

(647

,833

)(6

29,0

92)

Inco

me

(loss

) bef

ore

othe

r

re

venu

es, e

xpen

ses,

gain

s or l

osse

s45

,793

(2,4

91)

25,9

17(2

4,35

4)(5

4,66

4)(4

22,2

85)

31,1

1139

,047

69,9

0560

,606

Stat

e ca

pita

l app

ropr

iatio

ns9,

850

—

5,24

015

,886

4,45

79,

397

9,61

29,

468

6,64

33,

736

Capi

tal g

rant

s and

gift

s24

,094

17,5

6156

,006

37,5

806,

448

6,19

821

,945

28,3

5038

,376

31,1

48Ad

ditio

ns to

per

man

ent e

ndow

men

ts38

101

2056

720

912

32,

710

4,25

92,

765

11,8

46

Tota

l cha

nges

in n

et p

ositi

on79

,775

15,1

7187

,183

29,6

79(4

3,55

0)(4

06,5

67)

65,3

7881

,124

117,

689

107,

336

Net

pos

ition

, beg

inni

ng22

0,23

920

5,06

869

5,93

166

6,25

270

9,80

21,

116,

369

1,05

0,99

196

9,86

785

2,17

874

4,84

2

Net

pos

itio

n, e

ndin

g$

30

0,01

4$

220

,239

$ 78

3,11

4$

695,

931

$ 66

6,25

2$

70

9,80

2$

1,11

6,36

9$

1,05

0,99

1$

969,

867

$ 85

2,17

8

Net

inve

stm

ent i

n ca

pita

l ass

ets

$ 8

14,3

68$

789

,141

$ 7

70,3

25$

759,

323

$ 68

0,33

1$

63

9,23

6$

60

4,85

4$

53

5,28

1$

462,

861

$ 48

3,92

4Re

stri

cted

- ex

pend

able

183,

297

150,

070

144,

460

99,0

6212

6,83

418

4,82

819

2,76

520

1,48

422

1,59

314

7,71

4Re

stri

cted

- no

nexp

enda

ble

58,9

7959

,002

58,8

6758

,698

58,3

2358

,241

57,8

8055

,045

50,9

5947

,853

Unre

stri

cted

(756

,630

)(7

77,9

74)

(190

,538

)(2

21,1

52)

(199

,236

)(1

72,5

03)

260,

870

259,

181

234,

454

172,

687

To

tal

$ 3

00,0

14$

220

,239

$ 78

3,11

4$

695,

931

$ 66

6,25

2$

70

9,80

2$

1,11

6,36

9$

1,05

0,99

1$

969,

867

$ 85

2,17

8

Sour

ce:

Cle

mso

n U

nive

rsity

Com

preh

ensi

ve A

nnua

l Fin

anci

al R

epor

ts.

~ 83 ~

SCH

EDU

LE O

F R

ATIO

S O

F O

UTS

TAN

DIN

G D

EBT

For t

he F

isca

l Yea

r(a

mou

nts

expr

esse

d in

thou

sand

s ex

cept

for o

utst

andi

ng d

ebt p

er s

tude

nt)

2018

-19

2017

-18

2016

-17

2015

-16

2014

-15

2013

-14

2012

-13

2011

-12

2010

-11

2009

-10

Gene

ral O

blig

atio

n Bo

nds

$ 20

9,60

0$

213,

380

$ 1

50,3

50$

104,

435

$ 11

0,61

5$

116,

770

$ 8

8,42

0$

93,

075

$ 9

9,61

0$

41,

550

Plan

t Im

prov

emen

t Bon

ds

—

—

—

—

—

—

—

—

—82

0Re

venu

e Bo

nds

274,

470

281,

050

289,

205

295,

600

110,

860

26,5

8532

,350

37,6

2042

,090

46,9

00At

hlet

ic F

acili

ties R

even

ue B

onds

133,

730

137,

900

130,

605

134,

450

118,

875

22,6

8024

,150

25,6

0030

,045

31,7

70

Su

btot

al b

onds

pay

able

617,

800

632,

330

570,

160

534,

485

340,

350

166,

035

144,

920

156,

295

171,

745

121,

040

Unam

ortiz

ed b

ond

prem

ium

s46

,896

48,7

6136

,097

33,9

8420

,425

9,38

77,

145

8,07

84,

954

1,30

1

To

tal b

onds

pay

able

664,

696

681,

091

606,

257

568,

469

360,

775

175,

422

152,

065

164,

373

176,

699

122,

341

Not

es P

ayab

le

—

—

—

—

—

—15

047

596

41,

256

Capi

tal L

ease

Obl

igat

ions

11,6

8811

,991

11,9

9012

,967

13,9

9314

,963

15,9

11

—

—43

0

To

tal o

utst

andi

ng d

ebt

$ 67

6,38

4$

693,

082

$ 61

8,24

7$

581,

436

$ 37

4,76

8$

190,

385

$ 16

8,12

6$

164,

848

$ 17

7,66

3$

124,

027

Full-

time

equi

vale

nt st

uden

ts23

,663

23,2

1522

,307

21,6

5420

,823

20,2

0219

,800

18,9

8018

,417

18,2

37

Outs

tand

ing

debt

per

stud

ent

$ 2

8,58

4$

29,

855

$ 2

7,71

5$

26,

851

$ 1

7,99

8$

9

,424

$

8,4

91$

8

,685

$

9,6

47$

6

,801

Not

e: O

utst

andi

ng d

ebt p

er st

uden

t cal

cula

ted

usin

g fa

ll se

mes

ter f

ull-t

ime

equi

vale

nt st

uden

t enr

ollm

ent d

ata

for t

he la

st te

n ac

adem

ic y

ears

(pag

e 86

). So

urce

: C

lem

son

Uni

vers

ity C

ompr

ehen

sive

Ann

ual F

inan

cial

Rep

orts

, Cle

mso

n U

nive

rsity

Offi

ce o

f Ins

titut

iona

l Res

earc

h

~ 84 ~

SCH

EDU

LE O

F B

ON

D C

OVE

RA

GE

Last

Ten

Fis

cal Y

ears

(am

ount

s in

thou

sand

s)

Gen

eral

Obl

igat

ion

Bon

dsTu

ition

and

Mat

ricul

atio

nFe

es

Tota

l Rev

enue

Avai

labl

e fo

rD

ebt S

ervi

ce

Deb

t Ser

vice

Req

uire

men

tsPr

inci

pal

Inte

rest

To

tal

C

over

age

R

atio

Fi

scal

Yea

r

Ende

d Ju

ne 3

0

2019

$ 43

,244

$ 43

,244

$ 9,

415

$ 7,

035

$ 16

,450

2.63

20

1842

,066

42,0

666,

950

5,5

5312

,503

3.36

20

1735

,823

35,8

236,

480

5,05

811

,538

3.10

20

1633

,740

33,7

406,

180

4,21

710

,397

3.25

20

1529

,579

29,5

796,

155

4,54

410

,699

2.76

20

1427

,487

27

,487

4,68

03,

484

8,16

43.

37

2013

24,

703

24,7

034,

655

3,82

38,

478

2.91

20

1222

,440

22,4

404,

690

3,43

88,

128

2.76

20

1121

,028

21,0

284,

310

2,74

67,

056

2.98

20

10 2

0,49

320

,493

4,1

351,

845

5,98

03.

43

Rev

enue

Bon

ds

Rev

enue

sO

pera

ting

Expe

nses

Net

Rev

enue

Avai

labl

e fo

rD

ebt S

ervi

ceD

ebt S

ervi

ce R

equi

rem

ents

Prin

cipa

l In

tere

st

Tota

l

Cov

erag

e

Rat

ioFi

scal

Yea

rEn

ded

June

30

2019

$ 90

,776

$ 52

,687

$ 38

,089

$ 6,

580

$ 10

,729

$ 17

,309

2.20

2018

70,1

0745

,143

24,9

648,

155

10,8

1918

,974

1.32

2017

68,1

8542

,855

25,3

306,

395

10,9

7017

,365

1.46

2016

62,3

1739

,103

23,2

146,

260

7,91

714

,177

1.64

2015

58,6

53

38,6

67

19,9

866,

010

890

6,90

02.

9020

1456

,749

36,3

1020

439

5,76

569

16,

456

3.17

2013

55,4

5235

,233

20,2

195,

270

1,13

76,

407

3.16

20

1250

,466

31,6

3618

,830

5,32

01,

968

7,28

82.

5820

1149

,363

32,0

5717

,306

4,81

01,

875

6,68

52.

59

2010

49,

943

32,3

8617

,557

4,5

902,

293

6,88

32.

55

~ 85 ~

Ath

letic

Fac

ilitie

s R

even

ue B

onds

Ath

letic

Rev

enue

s

Ath

letic

Ope

ratin

gEx

pens

esN

et A

thle

ticR

even

ues

Adm

issi

ons

Fee

Tota

l Rev

enue

Avai

labl

e fo

rD

ebt S

ervi

ceD

ebt S

ervi

ce R

equi

rem

ents

Pr

inci

pal

Inte

rest

To

tal

Cov

erag

e

Rat

ioFi

scal

Yea

rEn

ded

June

30

2019

$ 14

5,16

7$

121,

902

$ 23

,265

$ 2,

252

$ 25

,517

$ 4,

170

$ 5,

002

$ 9,

172

2.78

2018

128,

631

109,

270

19,3

612,

179

21,5

404,

005

4,97

08,

975

2.40

2017

117,

150

101,

322

15,8

282,

214

18,0

423,

845

4,94

68,

791

2.05

2016

112,

996

92,2

7420

,722

1,92

722

,649

3,30

04,

752

8,05

22.

8120

1585

,185

77,0

528,

133

2,04

610

,179

1,38

01,

616

2,99

63.

4020

1482

,087

72,7

629,

325

667

9,99

21,

470

802

2,27

24.

4020

1376

,099

65,5

8810

,511

2,03

112

,542

1,45

095

3 2,

403

5.22

2012

73,1

5166

,988

6,16

32,

015

8,17

897

51,

054

2,02

94.

0320

1156

,551

54,4

412,

110

1,98

04,

090

1,72

51,

392

3,11

71.

3120

1053

,175

51,4

741,

701

1,88

33 ,

584

1,64

01,

460

3,10

01.

16

Not

e: T

he re

venu

e bo

nds a

re se

cure

d by

reve

nues

from

five

sour

ces:

din

ing

serv

ices

, ven

ding

ope

ratio

ns, t

he u

nive

rsity

boo

ksto

re, s

tude

nt h

ousi

ng a

nd p

arki

ng.

Sour

ce:

Cle

mso

n U

nive

rsity

Com

preh

ensi

ve A

nnua

l Fin

anci

al R

epor

ts

~ 86 ~

AD

MIS

SIO

NS,

EN

RO

LLM

ENT

AN

D D

EGR

EE S

TATI

STIC

SLa

st T

en A

cade

mic

Yea

rs

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

Adm

issi

ons-

Fres

hman

Ac

cept

ed a

s a p

erce

ntag

e of

app

licat

ions

47

.2%

47

.2%

52

.3%

51

.3%

51

.5%

57

.2%

57

.9%

60

.0%

57

.7%

62

.8%

En

rolle

d as

a p

erce

ntag

e of

acc

epte

d

27.8

%

29.5

%

36.2

%

30.0

%

32.5

%

30.9

%

32.3

%

28.7

%

31.0

%

33.1

%

SAT

scor

es-to

tal

1,

307

1,

302

1,

242

1,

251

1,

252

1,

246

1,

246

1,

229

1,

231

1,

225

Verb

al

649

65

0

611

61

3

611

60

9

610

59

9

599

59

7

M

ath

65

8

652

63

1

638

64

1

637

63

6

630

63

2

628

So

uth

Caro

lina

aver

age

SAT

scor

e-to

tal

1,

070

1,

064

98

7

978

97

8

971

96

9

972

97

9

982

Adm

issi

ons

—

Fres

hman

App

lied,

A

ccep

ted

and

Enro

lled

28,845

26,243

23,506

25,358

22,396

20,757

18,604

18,500

17,016

16,865

13,613

12,380

11,891

13,273

11,483

10,692

10,645

10,706

10,215

9,724

3,789

3,650

3,685

4,804

3,488

3,475

3,289

3,463

2,933

3,016

0

5,0

00

10

,000

15

,000

20

,000

25

,000

30

,000

35

,000

20

182

017

20

162

015

20

142

013

20

122

011

20

102

009

App

licat

ions

Acc

epte

dEn

rolle

d

NO

TES:

Ap

plic

atio

ns A

pplie

d, A

ccep

ted

and

Enro

lled

for 2

015

and

befo

re in

clud

e tr

ansf

er st

uden

ts. A

pplic

atio

ns fo

r 201

6 an

d fo

rwar

d in

clud

e on

ly F

resh

man

ent

erin

g Cl

emso

n.

Th

e N

atio

nal C

olle

ge B

oard

chan

ged

the

scor

ing

for 2

017

SAT'

s fro

m V

erba

l and

Mat

h to

Rea

ding

/Wri

ting

and

Mat

h fr

om a

160

0 sc

ale

to a

240

0 sc

ale

whi

ch in

crea

ses t

he to

tal s

core

s.

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

Enro

llmen

t

Unde

rgra

duat

e an

d gr

adua

te F

TE

23,6

63

23,2

15

22,3

07

21,6

54

20,8

23

20,2

02

19,8

00

18,9

80

18,4

17

18,2

37

Unde

rgra

duat

e an

d gr

adua

te h

eadc

ount

24

,932

24

,387

23

,406

22

,698

21

,857

21

,303

20

,768

19

,914

19

,453

19

,111

Pe

rcen

tage

of m

en

50.9

%

51.3

%

52.1

%

52.9

%

53.5

%

54.3

%

53.9

%

54.3

%

54.3

%

54.2

%

Perc

enta

ge o

f wom

en

49.1

%

48.7

%

47.9

%

47.1

%

46.5

%

45.7

%

46.1

%

45.7

%

45.7

%

45.8

%

Perc

enta

ge o

f bla

ck

6.3%

6.

3%

6.6%

6.

3%

6.2%

6.

0%

6.1%

6.

1%

6.1%

6.

7%

Perc

enta

ge o

f whi

te

77.2

%

78.5

%

77.8

%

77.6

%

77.2

%

76.6

%

78.1

%

78.2

%

78.3

%

78.0

%

Perc

enta

ge o

f oth

er

16.5

%

15.2

%

15.7

%

16.1

%

16.6

%

17.4

%

15.8

%

15.7

%

15.6

%

15.3

%

~ 87 ~

Enro

llmen

t —U

nder

grad

uate

an

d G

radu

ate

Hea

dcou

nt

1,574

1,540

1,535

1,419

1,347

1,270

1,272

1,215

1,186

1,277

19,243

19,136

18,204

17,626

16,876

16,324

16,218

15,562

15,239

14,910

4,115

3,711

3,667

3,653

3,634

3,709

3,278

3,137

3,028

2,924

12,6

8912

,506

12,2

0612

,016

11,6

9711

,574

11

,205

10

,808

10

,563

10

,368

12

,243

11,8

8111

,200

10,6

8210

,160

9,72

9 9,

563

9,10

6 8,

890

8,74

3

0

5,00

0

10,0

00

15,0

00

20,0

00

25,0

00

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

Bla

ckW

hite

Oth

erM

enW

omen

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

D

egre

es E

arne

d*

Ba

ccal

aure

ate

4,

521

4,18

24,

003

3,75

43,

747

3,75

53,

449

3,31

43,

416

3,25

5

M

aste

rs**

1,

478

1,37

51,

423

1,26

41,

282

1,18

91,

131

983

1,00

279

4

Do

ctor

ate

23

922

623

024

221

721

120

820

317

617

3

*

Incl

udes

May

and

Aug

ust o

f the

cur

rent

yea

r and

Dec

embe

r gra

duat

ion

from

the

prev

ious

yea

r.

** M

aste

rs a

war

ds in

clud

e sp

ecia

list d

egre

es.

4,521

4,182

4,003

3,754

3,747

3,755

3,449

3,314

3,416

3,255

1,478

1,375

1,423

1,264

1,282

1,189

1,131

983

1,002

794

239

226

230

242

217

211

208

203

176

173

0

500

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

4,5

00

5,0

00

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

Ba

cca

lau

rea

teM

ast

ers

Do

cto

rate

Sour

ce:

Cle

mso

n U

nive

rsity

Offi

ce o

f Ins

titut

iona

l Res

earc

h (h

ttps:

//ww

w.cl

emso

n.ed

u/in

stitu

tiona

l-effe

ctiv

enes

s/oi

r/fac

tboo

k/)

~ 88 ~

UN

DER

GR

AD

UAT

E AV

ERA

GE

AN

NU

AL

TUIT

ION

AN

D F

EES

Cle

mso

n U

nive

rsity

in C

ompa

rison

to T

en P

eer L

and-

Gra

nt In

stitu

tions

Last

ten

fisca

l yea

rs

For t

he F

isca

l Yea

r20

18-1

920

17-1

820

16-1

720

15-1

620

14-1

520

13-1

420

12-1

320

11-1

220

10-1

120

09-1

0In

stit

utio

n - R

esid

ent

Au

burn

Uni

vers

ity$

11,2

79$

10,9

68$

10,6

96$

10,4

24

$ 1

0,20

0$

9,8

52$

9,4

46$

8,6

98$

7,9

00$

6,9

72

Clem

son

Uni

vers

ity

14,9

7014

,712

14,3

1813

,882

13

,446

13,0

5412

,774

12,4

04

11,9

0811

,078

Ge

orgi

a In

stitu

te o

f Tec

hnol

ogy

12,4

2412

,418

12,2

1212

,204

11

,394

10,6

5010

,098

9,65

28,

716

7,50

6

Iow

a St

ate

Univ

ersi

ty8,

988

8,63

68,

219

7,73

6

7,73

17,

726

7,72

67,

486

6,99

76,

651

M

ichi

gan

Stat

e Un

iver

sity

14,5

2114

,460

14,0

6313

,560

13

,200

12,8

6312

,623

12,2

0311

,153

10,

880

M

issi

ssip

pi S

tate

Uni

vers

ity8,

650

8,31

87,

780

7,50

2

7,14

06,

772

6,26

45,

805

5,46

15,

151

N

orth

Car

olin

a St

ate

Univ

ersi

ty9,

101

9,05

88,

880

8,58

1

8,29

68,

206

7,78

87,

018

6,52

95,

474

Pu

rdue

Uni

vers

ity9,

992

9,99

210

,002

10,0

02

10,0

029,

992

9,90

09,

478

9,07

08,

638

Te

xas A

& M

Uni

vers

ity -

Mai

n Ca

mpu

s10

,968

10,4

0310

,030

9,42

8

9,17

98,

506

8,50

68,

421

8,38

78,

177

Un

iver

sity

of C

alifo

rnia

- Da

vis

14,4

6214

,419

14,0

4713

,952

13

,896

13,8

9615

,257

15,1

2313

,080

10,4

05

Virg

inia

Tec

h13

,620

13,2

3012

,852

12,4

85

12,0

1711

,455

10,9

2310

,509

9,45

98,

605

Und

ergr

adua

te T

uitio

n an

d Fe

es -

Res

iden

t — F

Y 20

18-1

9

Auburn University$11,276

Clemson University$14,970

Georgia Institute of Technology$12,424

Iowa State University$8,988

Michigan State University$14,521

Mississippi State University$8,650

North Carolina State University

$9,101

Purdue University$9,992

Texas A & M University -Main Campus$10,968

University of California -Davis$14,462

Virginia Tech$13,620

$0

$2,0

00

$4,0

00

$6,0

00

$8,0

00

$10,

000

$12,

000

$14,

000

$16,

000

~ 89 ~

For t

he F

isca

l Yea

r20

18-1

920

17-1

820

16-1

720

15-1

620

14-1

520

13-1

420

12-1

320

11-1

220

10-1

120

09-1

0In

stit

utio

n - N

on R

esid

ent

Au

burn

Uni

vers

ity$

30,5

24$

29,6

40$

28,8

40$

28,0

40

$ 2

7,38

4$

26,

364

$ 22

,977

$ 2

3,29

0$

21,

916

$ 1

9,45

2

Clem

son

Uni

vers

ity

36,7

2435

,654

34,2

0032

,800

31

,462

30,4

8829

,700

28,5

6227

,420

25,3

88

Geor

gia

Inst

itute

of T

echn

olog

y33

,020

33,0

1432

,404

32,3

96

30,6

9829

,954

29,4

0227

,862

26,9

2625

,716

Io

wa

Stat

e Un

iver

sity

23,3

9222

,472

21,5

8320

,856

20

,617

20,2

7819

,838

19,3

5818

,563

17,8

71

Mic

higa

n St

ate

Univ

ersi

ty39

,826

39,4

0537

,890

36,3

60

34,9

6533

,750

32,5

8031

,148

29,1

0827

,343

M

issi

ssip

pi S

tate

Uni

vers

ity23

,250

22,3

5820

,900

20,1

42

18,4

7816

,960

15,8

2814

,670

13,8

0113

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Clemson University$36,724

Georgia Institute of Technology$33,020

Iowa State University$23,392

Michigan State University$39,826

Mississippi State University$23,250

North Carolina State University$28,444

Purdue University$28,794

Texas A & M University -Main Campus$36,636

University of California -Davis$43,454

Virginia Tech$31,908

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Dep

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Supplementary Informationto the Financial Statements

(unaudited)

~ 96 ~

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Conf

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Pr

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111,

369

104,

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Roya

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Othe

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168,

225

435,

262

603,

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765,

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Coachingsalaries,benefitsandbonusespaidbytheinstitutionandrelatedentities

14,6

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924,

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Supportstaff/administrativesalaries,benefitsandbonusespaidbytheinstitutionand

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6,23

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Dire

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Bow

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382

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Re

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266,

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—

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266,

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—

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Acco

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101,

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Ass

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207,

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46,6

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279,

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424,

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3,49

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—

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3,49

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531

3,97

2,93

4

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dep

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624,

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158

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2,58

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3,90

8,75

12,

155,

582,

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Tota

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2,26

8,60

6,08

692

3,24

8,23

274

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99,7

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365,

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4,58

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5

—

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55,

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Deferredoutflowsonnetpensionliability

102,

552,

455

—

—

—

102,

552,

455

—

102,

552,

455

104,

832,

759

Deferredoutflowsonnetretireehealthbenefitsliability

38,6

12,3

11

—

—

—38

,612

,311

—

38,6

12,3

11

20,3

88,4

68

Totaldeferredoutflow

sofresources

145,

749,

771

—

—

—

145,

749,

771

—

145,

749,

771

130,

257,

291

Tota

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and

defe

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2,41

4,35

5,85

7 $

923,

248,

232

$ 74

,333

,259

$ 99

,709

,837

$

3,51

1,64

7,18

5$

(321

,047

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) $

3,19

0,59

9,49

6$

3,0

27,7

51,2

63

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1,75

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298

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$

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(3,0

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$

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Accr

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24,0

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—

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com

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abs

ence

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rela

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—

—

—

14,5

61,6

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—14

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13,9

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53

Ac

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545,

623

—

28,7

54

—4,

574,

377

—

4,57

4,37

74,

743,

700

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56,7

88,8

29

—2,

219,

699

—

59,0

08,5

28

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52,1

64,3

66

Bo

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,135

,558

—

—

—

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35,5

58

—24

,135

,558

22,7

78,1

13

Ca

pita

l lea

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0,24

3

—

—

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0,24

3(5

74,4

08)

275,

835

141,

775

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1,01

9,25

2

—28

,495

—

1,04

7,74

7

—1,

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747

2,81

9,03

5

Fu

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for o

ther

s1,

159,

172

—

—

—

1,15

9,17

2

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159,

172

1,08

3,63

8

To

tal c

urre

nt li

abilt

ies

162,

885,

803

1,75

1,28

52,

575,

495

2,71

6,81

616

9,92

9,39

9(3

,660

,288

)16

6,26

9,11

115

9,19

2,90

8

No

ncur

rent

Lia

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ies:

Accr

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com

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abs

ence

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rela

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liabi

litie

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—

—

—

13,7

94,3

93

—13

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12,1

82,7

47

Du

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the

Univ

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ty

—20

7,69

2,84

4

—

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7,69

2,84

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92,8

44)

—

—

Fund

s hel

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6,95

1,85

178

,592

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20,9

32,4

72

—10

6,47

6,91

7(9

9,52

5,06

6)6,

951,

851

6,87

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2

N

et p

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on li

abili

ty63

8,84

4,88

4

—

—

—63

8,84

4,88

4

—63

8,84

4,88

461

7,27

2,25

1

Netretireehealthbenefitsliability

588,

163,

078

—

—

—

588,

163,

078

—

588,

163,

078

557,

175,

950

Bond

s pay

able

640,

560,

899

—

—

—

640,

560,

899

—

640,

560,

899

658,

312,

567

Capi

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s pay

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10,8

37,6

62

—

—

—10

,837

,662

(10,

169,

491)

668,

171

531,

252

Not

es p

ayab

le

—

—21

,723

,980

—

21,7

23,9

80

—21

,723

,980

22,0

71,0

54

An

nuiti

es p

ayab

le

—3,

881,

688

—

—

3,88

1,68

8

—3,

881,

688

4,01

8,22

9

To

tal n

oncu

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t lia

bilit

ies

1,89

9,15

2,76

729

0,16

7,12

642

,656

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—

2,23

1,97

6,34

5(3

17,3

87,4

01)

1,91

4,58

8,94

41,

878,

435,

052

Tota

l lia

bilit

ies

2,06

2,03

8,57

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1,91

8,41

145

,231

,947

2,71

6,81

62,

401,

905,

744

(321

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,689

)2,

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858,

055

2,03

7,62

7,96

0

Def

erre

d in

flow

s of

res

ourc

es:

Deferredinflowsonnetpensionliability

4,18

9,66

9

—

—

—4,

189,

669

—

4,18

9,66

91,

108,

499

Deferredinflowsonnetretireehealthbenefitsliability

48,1

14,0

18

—

—

—48

,114

,018

—

48,1

14,0

1852

,678

,359

Totaldeferredinflowsofresources

52,3

03,6

87

—

—

—52

,303

,687

—

52,3

03,6

8753

,786

,858

Tota

l lia

bilit

ies

and

defe

rred

inflo

ws

of r

esou

rces

$ 2,

114,

342,

257

$ 29

1,91

8,41

1 $

45,2

31,9

47$

2,7

16,8

16

$ 2,

454,

209,

431

$ (3

21,0

47,6

89)

$2,1

33,1

61,7

42$2

,091

,414

,818

Net

Pos

itio

n

Net

inve

stm

ent i

n ca

pita

l ass

ets

$

814,

367,

624

$

9,25

3,59

5

$

—

$

—

$ 8

23,6

21,2

19

$

—

823,

621,

219

798,

431,

842

Re

stri

cted

for

non

expe

ndab

le p

urpo

ses:

Scho

lars

hips

and

fello

wsh

ips

58,9

78,5

06

—

—

—58

,978

,506

—

58,9

78,5

0638

0,35

1,42

3

Rest

rict

ed fo

r ex

pend

able

pur

pose

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594,

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—

—

616,

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—

616,

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260,

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Rese

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491,

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—

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491,

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491,

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660,

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—

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12,6

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2,18

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72,

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133,

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—

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133,

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106,

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12,2

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22,5

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20,5

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—

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20,5

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59,3

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—

—

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33,5

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9,84

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24,0

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—

662,

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24

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Pos

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, beg

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f yea

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0,23

8,71

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5

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51,

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—

—

—

—

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5

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587

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6,52

1

Net

pos

itio

n, e

nd o

f yea

r$

30

0,01

3,60

0$

631,

329,

821

$ 29

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$ 96

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$ 1

,057

,437

,754

$

—

$ 1

,057

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,754

$ 9

36,3

36,4

45

This Comprehensive Annual Financial Report is also available on the Clemson University Comptroller Office website located at

http://www.clemson.edu/finance/controller/cafr

Prepared by:Controller’s OfficeAdministrative Services BuildingP.O. Box 345321Clemson, SC 29634-5321Tel: (864) 656-0586 FAX: (864) 656-5600

Sherri RowlandAssociate Vice President and Controller

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