TSU is one of the leading Historically Black Colleges and Universities in the United States. It is in the Houston metropolitan area, and currently has enrollment about 10,000 students. Financially, it reports as a special-purpose entity engaged in business-type activities. In recent years, it has experienced issues that have perplexed most of the public universities, such as tuition increase, budget reduction, and enrollment instability. Annual financial reported of the school can be obtained from the TSUs website under the Division of Finance. After examining its most recent financial statements that are available from the schools website, the students are required to answer the following questions. 1) Does the institution report a Statement of Net Position? Is the statement in the classified format? What are the categories of Net Position reported on the statement? List the major restrictions appearing in restricted portion of the Next Position. Is the Unrestricted Net Position a positive or negative amount? 2) What are the major depreciable and non-depreciable assets of TSU? 3) In the Statement of Revenue, Expenses and Change in Net Position, what is the largest revenue item in the operating income section? What percent of tuition revenue is not on accrued basis by the end of the fiscal year? How are scholarships and fellowships, for which no service is required, reported in the statement? Is the operating income a positive or negative figure? Why? 4) What are the largest three expenditure items in the operating income? Give suggestions on how the school can continue to expand revenue sources and save on spending? 5) What are the other two sections in the Statement of Revenue, Expenses and Change in Net Position? Which items are included in these two sections? How do these two sections help the university compensate for the negative operating income? 6) Explain capital appropriation, capital gifts and grants, and addition to permanent endowments. 7) How much outstanding bonds payable does TSU have? What is TSUs bond rating? Has it been improving or deteriorating? What are the major comments given by the rating agency for the current bond rating of TSU? How is revenue bond different from general obligation bond? 8) Write a two-page summary report for the overall financial condition and operating results of TSU. Topics may include, but not limited to, whether you are optimistic about the schools future development. What actions do you think the school should take when the federal and state funding keep decreasing?