1. University of Florida Reporting Entity Criteria

   Criteria for defining the reporting entity are identified and described in the Governmental Accounting Standards Board's (GASB) Codification of Governmental Accounting and Financial Reporting Standards, Sections 2100 and 2600. These criteria were used to evaluate potential component units for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the primary government's financial statements to be misleading or incomplete.

2. Blended Component Unit

   Based on the application of the criteria for determining component units, the University of Florida Self-Insurance Program (the Program), combined with the University of Florida Healthcare Education Insurance Company (HEIC), is included within the University's reporting entity as a blended component unit. The Program was created by the State's Board of Governors, pursuant to Section 1004.24, Florida Statutes. The HEIC was created on September 1, 1994, as a self-insurance mechanism created pursuant to Section 1004.24, Florida Statutes. Although legally separate from the University of Florida, the Program's and the HEIC's sole purpose is to assist in providing liability protection for the University and its affiliated individuals and entities, and are therefore reported as if they are part of the University. See Notes to the Financial Statements section of the University of Florida Annual Financial Report for more details.

    

3. Discretely Presented Component Units

   Based on the application of the criteria for determining component units, certain affiliated organizations are included within the University's reporting entity as discretely presented component units. The University further categorizes its component units as Direct-Support Organizations, Health Science Center Affiliates, and Shands Teaching Hospital and Others. An annual audit of each organization's financial statements is conducted by independent certified public accountants. The annual report is submitted to the Auditor General and the University Board of Trustees. Additional information on the University's discretely presented component units, including copies of audit reports, is available by contacting the Office of University Relations. Condensed financial statements for the University's discretely presented component units are shown in Notes to the Financial Statements section of the University of Floirida Annual Financial Report.

    

4. Direct Support Organizations

   The University's direct-support organizations, as provided for in Section 1004.28, Florida Statutes, and Board of Governors Regulation 6C-9.011, are considered component units of the University of Florida and therefore the latest audited financial statements of these organizations are included in the financial statements of the University by discrete presentation. These legally separate, not-for-profit, corporations are organized and operated exclusively to assist the University to achieve excellence by providing supplemental resources from private gifts and bequests, and valuable education support services. The Statute authorizes these organizations to receive, hold, invest and administer property and to make expenditures to or for the benefit of the University. These organizations and their purposes are explained as follows:

   University of Florida Foundation, Inc. solicits, collects, manages, and directs contributions to the various academic departments and programs of the University, and assists the University in fund raising, public relations, and maintenance of alumni records.

   University of Florida Research Foundation, Inc. promotes, encourages, and assists research activities of the University through income derived from or related to the development and commercialization of intellectual properties, which include inventions, discoveries, processes, and work products.

   The University Athletic Association, Inc. conducts various inter-collegiate athletic programs for and on behalf of the University.

   Gator Boosters, Inc. supports athletic activities at the University.

   The University of Florida Law Center Association, Inc. supports the College of Law.

   Florida Foundation Seed Producers, Inc. supplies Florida farmers and producers with crop seed and nursery stock. This organization stocks foundation seed of the best-known varieties acceptable to Florida climate and soils in adequate quantities and at reasonable prices.

   Florida 4-H Club Foundation, Inc. promotes the educational objectives of the Florida Cooperative Extension Service.

   Southwest Florida Research and Education Foundation, Inc. provides research and educational support to the University of Florida Southwest Florida Research and Education Center.

   Citrus Research and Education Foundation, Inc. expedites citrus production, propagates new plant materials, collects and analyzes environmental impact research data, and provides research and education support to the University of Florida Citrus Research and Education Center at Lake Alfred.

   The Florida Leadership and Education Foundation, Inc. was formed to further agriculture and natural resource education and related activities, promote agriculture and natural resources leadership, and make contributions to and confer benefits upon the University.

   Treasure Coast Agricultural Research Foundation, Inc. supports, encourages, and fosters research, education, and extension at the Institute of Food and Agricultural Sciences of the University on issues related to the citrus industry within the Indian River region.

   University of Florida Alumni Association, Inc. supports activities of the alumni of the University of Florida.

   University of Florida Investment Corporation promotes the educational purposes of the University of Florida by providing investment research, advice, counsel, and management to and for the University Board of Trustees and affiliated organizations of the University.

    

5. Health Science Center Affiliates

   Several corporations closely affiliated with the University of Florida J. Hillis Miller Health Science Center (JHMHC) are considered to be component units of the University of Florida. These corporations are as follows:

   Faculty Associates, Inc.

   Florida Health Professions Association, Inc.

   UF College of Nursing Faculty Practice Association, Inc.

   UF College of Pharmacy Faculty Practice Association, Inc.

   Florida Veterinary Medicine Faculty Association, Inc.

   UF Jacksonville Healthcare, Inc.

   Faculty Clinic, Inc. d.b.a. UF Faculty Clinic/Jacksonville

   The first seven corporations listed are Faculty Practice Plans, as provided for in Board of Governors Regulation 6C- 9.017. The Faculty Practice Plans provide educationally-oriented clinical practice settings and opportunities through which faculty members provide health, medical, and dental care to patients as an integral part of their academic activities and their employment as faculty. Because these faculty practice activities generate income, the colleges are authorized to regulate fees generated from faculty practice and maintain Faculty Practice Plans for the orderly collection and distribution of fees. These organizations provide significant support for the clinical instruction function of the JHMHC.

   University of Florida Jacksonville Healthcare, Inc., a Health Services Support Organization, as provided for in Board of Governors Regulation 6C-9.020, engages in strategic alliances and partnerships with non-academic entities, effecting managed care contracting and provider network development for the JHMHC. Faculty Clinic, Inc. was originally organized to operate a multi-specialty clinic. However, effective January 1, 1995, Faculty Clinic, Inc. was restructured to operate as a facilities management company.

    

6. Shands Teaching Hospital and Others

   Shands Teaching Hospital and Clinics, Inc. (Shands) was incorporated October 15, 1979, as a not-for-profit corporation. Shands, a major tertiary care teaching institution, is a leading referral center in the State of Florida and the southeast United States and facilitates medical education programs at the University.

   Shands entered into a contractual agreement, as of July 1, 1980, as subsequently restated and amended, with the State Board of Education of the State of Florida, to provide for the use of hospital facilities at the JHMHC through December 31, 2030, with renewal provisions. The contractual agreement also provides for the transfer to Shands of all other assets and liabilities arising from the operation of the hospital facilities prior to July 1, 1980. At termination of the contractual agreement, the net assets of Shands revert to the State Board of Education. Legal title to all buildings and improvements transferred to Shands remains with the State of Florida during the term of the contractual agreement. The contractual agreement provides for a 12-month grace period for any event of default, other than the bankruptcy of Shands. In addition, the contractual agreement limits the right of the State Board of Education to terminate the contractual agreement solely to the circumstance in which Shands declares bankruptcy and, in such event, requires net revenues derived from the operation of the hospital facilities to continue to be applied to the payment of Shands' debts.

   Under the terms of the contractual agreement, Shands is obligated to manage, operate, maintain, and insure the hospital facilities in support of the programs of the JHMHC and further agrees to contract with the State Board of Education for the provision of these programs. By operation of law, the University of Florida Board of Trustees has become the successor-in-interest to the State Board of Education.

   Baby Gator Child Care Center, Inc. (the Center) was incorporated October 19, 1970, under Section 1011.48, Florida Statutes, to establish and operate an educational research center for child development for children of University of Florida students, faculty and staff. The Center is funded primarily through fees paid by parents and an annual allocation of funds from the Capital Improvement Trust Fund established by the State Board of Education. In addition, the Center receives other governmental assistance. The Center uses a facility owned by the University without charge. The University also provides other services and support for the Center, some also without charge. The Center's policy is to not record contributed facilities, services, and other support in its financial statements. The Center became an auxiliary of the University effective July 1, 2007.

   University Village Apartments, Inc. (the Corporation) was established in 1969, for the purpose of providing housing for low- and moderate-income families, especially those affiliated with the University of Florida. Capital was contributed at inception by the University of Florida Foundation, Inc., but no capital stock was issued because the Corporation does not operate for the benefit of any special interest. The Corporation provides housing under Section 221(d) (3) of the National Housing Act. The facility consists of 28 two-story buildings and is regulated by the United States Department of Housing and Urban Development as to rent charges and operating methods. The Corporation's major program is its Section 221 insured loan, which is in the repayment phase. Legal title to the property is held by the Corporation.