STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Financial Statements
June 30, 2021 and 2020
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Table of Contents
Page
Independent Auditors’ Report 1
Management’s Discussion and Analysis (Unaudited) 4
Basic Financial Statements:
Statements of Net Position – State of Mississippi Institutions of Higher Learning 15
Statements of Financial Position – Discretely Presented Component Unit – Mississippi State
University Foundation, Inc. 16
Statements of Financial Position – Discretely Presented Component Unit – The University of
Mississippi Foundation 17
Statements of Financial Position – Discretely Presented Component Unit – The University of
Southern Mississippi Foundation 18
Statements of Revenues, Expenses and Changes in Net Position – State of Mississippi
Institutions of Higher Learning 19
Statements of Activities – Discretely Presented Component Unit – Mississippi State
University Foundation, Inc. 20
Statements of Activities – Discretely Presented Component Unit – The University of
Mississippi Foundation 22
Statements of Activities – Discretely Presented Component Unit – The University of
Southern Mississippi Foundation 24
Statements of Cash Flows – State of Mississippi Institutions of Higher Learning 26
Notes to Financial Statements 28
Combining Supplemental Information:
Combining Statement of Net Position 120
Combining Statement of Revenues, Expenses and Changes in Net Position 122
Combining Statement of Cash Flows 124
Required Supplementary Information (Unaudited):
Schedule of Proportionate Share of Net Pension Liability 127
Schedule of Proportionate Share of Contributions to the Mississippi
Public Employees’ Retirement System 130
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Table of Contents
Page
Schedule of Proportionate Share of Net OPEB Liability 133
Schedule of Proportionate Share of Contributions to the Mississippi
State and School Employees’ Life & Health Insurance Plan 135
Notes to Required Supplementary Information 137
Report on Internal Control and Compliance:
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed
in Accordance with Government Auditing Standards 139
Component Unit Additional Information for Inclusion in the State of Mississippi Comprehensive
Annual Financial Report :
Component Unit – Combining Schedule of Net Position 141
Component Unit – Combining Schedule of Activities 143
Component Unit – Schedule of Accounts Receivable Disclosure 144
Component Unit – Schedule of Notes and Pledges Receivable Disclosure 145
Component Unit – Schedule of Assets under Capital Lease Disclosure 146
Component Unit – Schedule of Capital Assets Disclosure 147
Component Unit – Schedule of Construction Commitments and Financing Disclosure 148
Component Unit – Schedule of Long-Term Liabilities Disclosure (Rollforward) 149
Component Unit – Schedule of Debt Service Disclosure (IHL System only, by Institution) 150
Component Unit – Schedule of Debt Service Disclosure (IHL System only, Combined) 152
Component Unit – Schedule of Bonds and Notes Payable Disclosure 153
Component Unit – Schedule of Functional Expenses Disclosure 155
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FINANCIAL AUDIT REPORT
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1
INDEPEND
ENT AUDITORS' REPORT
Board of Trustees
State of Mississippi Institutions of Higher Learning
Jackson, Mississippi
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 State of Mississippi Institutions of Higher Learning
(the IHL System), a component unit of the State of Mississippi, as of and for the years ended June 30,
2021 and 2020, and the related notes to the financial statements, which collectively comprise the IHL
System’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.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. For the
years ended June 30, 2021 and 2020, we did not audit the financial statements of the Mississippi State
University Foundation, Inc., the University of Mississippi Foundation, the University of Mississippi
Educational Building Corporation, the University of Mississippi Medical Center Tort Claims Fund, the
State Institutions of Higher Learning Self-Insured Workers’ Compensation Fund, and the State
Institutions of Higher Learning Tort Liability Fund. Those 2021 financial statements, which reflect
approximately 4.5%, 1.7% and 0.6% of the assets, net position and revenues of the IHL System’s
business-type activities and 89.7%, 89.4% and 88.4% of assets, net assets and revenues of the
aggregate discretely presented component units as of and for the year ended June 30, 2021, were
audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it related
to the amounts included for the above mentioned entities/funds, is based solely on the reports of the
other auditors. Those 2020 financial statements, which reflect approximately 5.0%, 1.5% and 0.7% of
the assets, net position and revenues of the IHL System’s business-type activities and 89.5%, 89.2%
and 88.2% of assets, net assets and revenues of the aggregate discretely presented component units
as of and for the year ended June 30, 2020, were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it related to the amounts included for the above mentioned
entities/funds, is based solely on the reports of the other auditors. We conducted our audits 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.
Board of Trustees
State of Mississippi Institutions of Higher Learning
2
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
Mississippi State University Foundation, Inc., the University of Mississippi Foundation, the University of
Southern Mississippi Foundation, the University of Mississippi Medical Center Tort Claims Fund, the
State Institutions of Higher Learning Self-Insured Workers’ Compensation Fund, and the State
Institutions of Higher Learning Tort Liability Fund were not audited in accordance with Government
Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ 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 audits 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 IHL System as of June 30,
2021 and 2020, and the respective changes in financial position and, where applicable, cash flows
thereof for the years then ended in accordance with accounting principles generally accepted in the
United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the various schedules of Proportionate Share of Net Pension
Liability, Proportionate Share of Contributions to PERS, Proportionate Share of Net OPEB Liability and
Proportionate Share of Contributions to OPEB, collectively the required supplementary information, as
listed in the table of contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audits of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Board of Trustees
State of Mississippi Institutions of Higher Learning
3
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the IHL System’s basic financial statements. The combining supplementary
information on pages 120-126 and the accompanying component unit additional information for
inclusion in the State of Mississippi Comprehensive Annual Financial Report on pages 141-155 are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining supplementary information and the accompanying component unit additional
information for inclusion in the State of Mississippi Comprehensive Annual Financial Report is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, based on our audits and the reports of other auditors,
the combining supplementary information and the accompanying component unit additional information
for inclusion in the State of Mississippi Comprehensive Annual Financial Report is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2021, on our consideration of the IHL System'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 solely 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 the effectiveness of the IHL System’s 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 IHL System’s internal control over financial reporting and
compliance.
CliftonLarsonAllen LLP
Baltimore, Maryland
December 20, 2021
MANAGEMENT’S DISCUSSION AND ANALYSIS
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STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
4
Introduction
The Board of Trustees of Mississippi’s Institutions of Higher Learning (IHL System) governs the state’s public four-year
institutions. The Constitutional Governing Board was created in 1943 for the purpose of overseeing and directing
Mississippi’s eight public universities including the University of Mississippi Medical Center, various off-campus centers
and multiple research institutes located throughout Mississippi.
The institutions serve approximately 77,000 students with an employee base of 27,600 individuals. Faculty makes up
approximately 6,000 of the total employee count. The system offers over 800 degree programs and awarded approximately
19,100 degrees in academic year 2020.
In addition to regular operations, each university has established its own educational building corporation (EBC) in
accordance with Section 37-101-61 of the Mississippi Code Annotated of 1972. The purpose of these corporations is to
provide a means to acquire land or buildings, construct or renovate facilities, and/or equip facilities. Governmental
Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, 39, Determining Whether
Certain Organizations are Component Units – An Amendment of GASB Statement No. 14, and 61, The Financial Reporting
Entity: Omnibus – An Amendment of GASB Statements No. 14 and No. 34, deem EBCs to be component units of the IHL
System; therefore, they are included as blended component units in the basic financial statements. In addition to EBCs, the
IHL System has three additional component units considered significant to the financial statements. The three units are
Mississippi State University Foundation, Inc., the University of Mississippi Foundation and the University of Southern
Mississippi Foundation. These audited financial statements are discretely presented following the IHL System’s financial
statements.
This report was prepared in accordance with GASB Statements 34 and 35, Basic Financial Statements and Management’s
Discussion and Analysis for State and Local Governments, and Basic Financial Statements – and Management’s
Discussion and Analysis – for Public Colleges and Universities – An Amendment of GASB Statement No. 34, and present
financial data for the fiscal period ending June 30, 2021. The IHL System reports as a special purpose government, engaged
solely in business-type activities. This section should be read in conjunction with the financial statements and the notes
that follow.
The following is a list of abbreviations used throughout this financial report for the member universities of the IHL System:
ASU Alcorn State University
DSU Delta State University
JSU Jackson State University
MSU Mississippi State University
MUW Mississippi University for Women
MVSU Mississippi Valley State University
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
5
UM University of Mississippi
USM University of Southern Mississippi
UMMC University of Mississippi Medical Center
IHL Executive Office Institutions of Higher Learning – Executive Office
UPM University Press of Mississippi
MCVS Mississippi Commission for Volunteer Service – Off-campus entity
The discussion and analysis below provide an overview of the financial position and activities of the IHL System for the
years ended June 30, 2021 and 2020. This discussion has been prepared by management and should be read in conjunction
with the financial statements and accompanying notes that follow this section.
Financial Highlights
The IHL System recorded an increase in net position of $233 million in fiscal year 2021. Operating expenses were reduced
by $48.6 million, including a $46.6 million reduction in salaries/wages and fringe benefits. Travel expenses were down
$22.9 million. Scholarship and fellowship expenses remained flat at approximately $222 million after experiencing a 26%
increase in fiscal year 2020. Patient care revenues of the medical center experienced a modest 1.8% decrease, or $21.3
million.
Years ended June 30,
Financial highlights (in millions) 2019 2020 2021
Total operating revenues $ 2,720 2,752 2,787
Total operating expenses 3,611 3,793 3,744
Operating loss (891) (1,041) (957)
State appropriations 669 702 687
Gifts 218 267 345
Investment income 44 18 89
Interest expense on capital asset-related debt (43) (36) (37)
Other nonoperating revenues, net
and other revenue, expenses, gains and losses 106 132 106
Increase in net position 103 42 233
Net position, beginning of the year 2,054 2,157 2,199
Net position, end of year $ 2,157 2,199 2,432
Operating revenues minus operating expenses typically result in an operating loss in the IHL System’s financial statements.
Nonoperating items, however, including state support, investment income, and gifts have typically enabled the IHL System
to reflect an increase in the net position, or “equity” each year. This surplus has been reinvested within the IHL System to
add a margin of educational excellence, upgrade the IHL System’s facilities and provide a prudent reserve for contingencies
such as the recent period of economic instability.
Overview of the Financial Statements
The IHL System’s financial report consists of management’s discussion and analysis, financial statements including notes,
and financial statements of the discretely presented component units. The statements of IHL System’s financial statements
are the Statement of Net Position; the Statement of Revenues, Expenses, and Changes in Net Position; the Statement of
Cash Flows; and the Statement of Financial Position and Statement of Activities for the discretely presented component
units.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
6
Financial Statements
The financial statements present information for the IHL System as a whole. The Statement of Net Position presents the
financial position of the IHL System at the end of fiscal years 2021 and 2020 and includes all assets, deferred outflows,
liabilities, and deferred inflows for all institutions within the IHL System. The difference between total assets, deferred
outflows, total liabilities, and deferred inflows – net position – is one measure of the IHL System’s financial health or
position. The change in net position is a useful indicator of financial health of the IHL System. Over time, increases or
decreases in the IHL System’s net position provide a useful trend in assessing whether its financial health is improving.
Other nonfinancial factors such as enrollment trends and the condition of the physical plant are also useful in evaluating
the overall financial health of the IHL System.
The Statement of Revenues, Expenses and Changes in Net Position presents the operating results of the IHL System, as
well as nonoperating revenues and expenses for the years ended June 30, 2021 and 2020. Operating revenues are received
for providing goods and services to various customers and constituencies of the IHL System. Operating expenses are
incurred to acquire or produce the goods and services provided in return for the operating revenues. Nonoperating revenues
are received for which goods and services are not provided as an exchange transaction. State appropriations, which
represent 16.9% and 18.1% of total IHL System net revenues for fiscal years 2021 and 2020, respectively, are classified
as nonoperating revenue because these revenues are appropriated at the state level rather than at the institutional level. This
accounting treatment for this revenue classification typically results in the IHL System showing an operating loss. Other
typical nonoperating revenue sources include gifts, grants, and appropriations restricted for capital purposes.
The Statement of Cash Flows provides information about the cash sources and uses of the IHL System. Additional
information for these statements is provided later in this report.
The following chart depicts a ten-year history of fall enrollment.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Headcount
80,516 81,022 80,300 79,704 81,024 82,654 81,378 79,193 77,894 77,154
Full-Time Equivalent
69,913 70,480 70,792 70,778 72,473 75,198 74,817 71,305 69,455 68,586
60,000
65,000
70,000
75,000
80,000
85,000
10 Year History of Fall Enrollment
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
7
Statement of Net Position
The Statement of Net Position presents the financial position as of the end of the fiscal year and includes all assets,
liabilities, deferred outflows, and deferred inflows of the IHL System. Cash and investments are generally reported at fair
values. Capital assets are reported at historical cost less an allowance for depreciation. The difference between total assets
and deferred outflows, and total liabilities and deferred inflows – net position – is one indicator of the current financial
condition, while the change in net position is an indicator of whether the overall financial condition has improved or
worsened during the current year. From the data presented, readers of the Statement of Net Position are able to determine
the assets available to continue the operations of the entity, and how much is owed to vendors, investors, and lending
institutions. Finally, the Statement of Net Position provides a picture of the net position and its availability for expenditure.
Net position is classified into components as follows:
▪ Net investment in capital assets represents the investment in property, plant, and equipment less any related debt used
to acquire those assets.
▪ Restricted nonexpendable net position consists of the IHL System’s permanent endowment funds.
▪ Restricted expendable net position is available for expenditure but must be spent for purposes as determined by donors
and/or external entities that have placed time or purpose restrictions on the use of the assets.
▪ Unrestricted net position is available for any lawful purpose of the IHL System.
Summary of Net Position (Condensed)
June 30, 2019 June 30, 2020 June 30, 2021 2019 to 2020 2020 to 2021
Assets:
Current assets $ 1,391,902,347 1,638,143,639 1,708,473,104 17.7 % 4.3 %
Capital assets, net 4,348,912,581 4,454,475,918 4,460,199,426 2.4 0.1
Other assets
1,002,280,445 964,168,414 1,284,759,866 (3.8) 33.3
Deferred outflows 242,313,161 333,082,766 476,671,893 37.5 43.1
Total assets and deferred
outflows of resources $ 6,985,408,534 7,389,870,737 7,930,104,289 5.79 % 7.31 %
Liabilities:
Current liabilities $ 462,554,570 667,251,775 737,194,628 44.3 10.5
Noncurrent liabilities 4,249,359,249 4,411,834,096 4,652,692,810 3.8 5.5
Deferred inflows 116,479,343 111,805,741 108,078,232 (4.0) (3.3)
Total liabilities and deferred
inflows of resources $ 4,828,393,162 5,190,891,612 5,497,965,670 7.5 % 5.9 %
Net position (deficit):
Investment in capital assets,
net of debt $ 3,134,825,439 3,241,081,161 3,263,116,965 3.4 % 0.7 %
Restricted – nonexpendable 181,254,031 182,569,210 197,382,615 0.7 8.1
Restricted – expendable 320,633,707 323,502,885 374,397,093 0.9 15.7
Unrestricted
(1,479,697,805) (1,548,174,131) (1,402,758,054) (4.6) 9.4
Total net position $ 2,157,015,372 2,198,979,125 2,432,138,619 1.9 % 10.6 %
Changes between years
At June 30, 2021, 2020, and 2019 current assets totaled $1.71 billion, $1.64 billion, and $1.39 billion, respectively, and
consisted primarily of cash and cash equivalents, short-term investments and net receivables. Current assets increased
4.3% (or $70.4 million) and 17.7% (or $246.2 million) from June 30, 2020 to 2021 and June 30, 2019 to 2020, respectively.
Cash and cash equivalents, and short-term investments constituted approximately 72.4% and 68.9% of current assets as of
June 30, 2021 and 2020, respectively, while net receivables constituted approximately 21.7% and 25.1% of current assets
as of June 30, 2021 and 2020, respectively. Approximately 39.6% and 35.8% of these net receivables are amounts due
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
8
from gifts, contracts and grants, and the State of Mississippi for appropriations as of June 30, 2021 and 2020, respectively,
while 35.8% and 41.8%, respectively, were related to patient care receivables from UMMC. The remaining receivables
were primarily owed from students for tuition, room and board charges.
At June 30, 2021, 2020 and 2019, noncurrent assets totaled $5.7 billion, $5.4 billion, and $5.4 billion, respectively, which
included capital assets of $4.5 billion, $4.5 billion, and $4.3 billion, respectively. Noncurrent cash and investments that
are restricted externally by endowment arrangements or specific grant and contract arrangements approximated $222.8
million and $161.1 million at June 30, 2021 and 2020, respectively. These amounts are reflected in net position expendable
for scholarships and fellowships and other purposes in the statement of net position. There were no unspent bond proceeds
at June 30, 2021 and 2020. One other significant noncurrent asset of the IHL System is student notes receivable which
equaled $68.2 million and $78.8 million at June 30, 2021 and 2020, respectively. In total, noncurrent assets increased by
6% (or $326 million). Net capital assets remained stable at $4.5 billion during 2021 and 2020. The IHL System’s inventory
of buildings has increased in pre-depreciation value by a total of $1 billion since June 30, 2017. Additional details about
the IHL System’s most recent capital asset growth can be seen in the Capital Asset and Debt Administration section of this
report.
At June 30, 2021, 2020 and 2019, current liabilities equaled $737.2 million, $667.3 million and $462.6 million,
respectively, and consisted primarily of accounts payable and accrued liabilities, and unearned revenues. Unearned
revenues include advance receipts for athletic ticket sales, summer tuition, fees, and student housing.
Noncurrent liabilities are those liabilities due and payable more than twelve months from year-end. Noncurrent liabilities
equaled $4.7 billion, $4.4 billion, and $4.2 billion at June 30, 2021, 2020, and 2019, respectively. The IHL System’s
proportionate share of the collective net pension liability reported by PERS increased by $279.5 million (9.8%) and by
$194.2 million (7.3%) as of June 30, 2021 and 2020, respectively. The IHL System’s proportionate share of the collective
net OPEB liability reported by the State and School Employees’ Life and Health Insurance Plan decreased by $11.5 million
(7.3%) and increased by $15.7 million (11%) as of June 30, 2021 and 2020, respectively. The OPEB liability was
implemented as a new standard during 2018.
Deferred outflows of resources increased in 2021 while deferred inflows of resources decreased, primarily due to the
impact of net pension liabilities. The IHL System recorded $393.9 million and $267.2 million of pension-related deferred
outflows at the end of fiscal years 2021 and 2020, respectively, primarily representing the deferral of pension contributions
paid during the year for the IHL System’s participation in the cost-sharing, defined benefit pension plan administered by
PERS. In addition, $26.4 million and $59.2 million of pension-related deferred inflows at June 30, 2021 and 2020,
respectively, were recorded related to the IHL System’s proportionate share of collective deferred inflows reported by
PERS. These deferred inflow amounts represent the difference between projected and actual investment earnings on
pension plan assets during the measurement period, as well as differences between expected and actual experience with
regard to economic and demographic factors.
Restricted nonexpendable net position equaled $197.4 million and $182.6 million at June 30, 2021 and 2020, respectively,
and consisted of endowment and similar type funds, in which donors or other outside sources have stipulated, as a condition
of the gift instrument, that the principal be maintained intact and invested for the purpose of producing income that may
either be expended or added to principal. The value of this net position has increased 8.1% (or $14.8 million) and 0.7% (or
$1.3 million) from June 30, 2020 to 2021 and June 30, 2019 to 2020, respectively.
Restricted expendable net position equaled $374.4 million and $323.5 million at June 30, 2021 and 2020, respectively, and
consisted of resources that the IHL System is legally or contractually obligated to spend in accordance with restrictions
imposed by external third parties. The value of this net position has increased 15.7% (or $50.9 million) and 0.9% (or
$2.9 million) from June 30, 2020 to 2021 and June 30, 2019 to 2020, respectively.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
9
Unrestricted net position (deficit) equaled $(1.40) billion and $(1.55) billion at June 30, 2021 and 2020, respectively, and
represents those assets that are available to the IHL System for any lawful purpose. The value of unrestricted net position
improved 9.4% (or $145.4 million) from June 30, 2020 to 2021 but had fallen back by 4.6% (or $68.5 million) from June
30, 2019 to 2020. The unrestricted deficit is the result of the implementation of GASB Statement Nos. 68 and 75, under
which IHL recognizes a liability for its net pension and OPEB obligations.
Statement of Revenues, Expenses and Changes in Net Position
The Statement of Revenues, Expenses and Changes in Net Position presents the revenues earned and expenses incurred
during the year. Activities are reported as either operating or nonoperating. Operating revenues are earned by providing
goods and services to various customers and constituencies. Operating expenses are incurred to acquire or produce the
goods and services and to carry out the mission of the IHL System. Nonoperating revenues are revenues received for which
goods and services are generally not provided. A public university’s dependence on state aid and gifts usually results in
operating deficits because state appropriations and gifts are classified as nonoperating revenues. The utilization of
long-lived assets, referred to as capital assets, is reflected in the financial statements as depreciation, which spreads the
cost of an asset over its expected useful life.
Changes in total net position as presented on the Statement of Net Position are based on the activity presented in the
Statement of Revenues, Expenses and Changes in Net Position. The purpose of the statement is to present the revenues
earned, both operating and nonoperating, and the expenses incurred, operating and nonoperating, and any other revenues,
expenses, gains or losses received or incurred by the IHL System.
Summary of Revenues, Expenses and Changes in Net Position (Condensed)
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
Operating revenues
$ 2,720,082,179 2,752,093,996 2,786,941,000 1.2 % 1.3 %
Operating expenses 3,610,653,918 3,792,667,222 3,744,020,192 5.0 (1.3)
Operating loss (890,571,739) (1,040,573,226) (957,079,192) 16.8 (8.0)
Nonoperating revenues $ 876,337,399 954,950,291 1,081,842,228 9.0 13.3
Income (loss) before other
revenues, expenses,
gains or losses (14,234,340) (85,622,935) 124,763,036 501.5 (245.7)
Other revenues, expenses, gains or losses 117,676,039 127,586,688 108,396,458 8.4 (15.0)
Change in net position 103,441,699 41,963,753 233,159,494 (59.4) 455.6
Net position, beginning of the year 2,053,573,673 2,157,015,372 2,198,979,125 5.0 1.9
Net position, end of the year $ 2,157,015,372 2,198,979,125 2,432,138,619 1.9 % 10.6 %
Changes between years
Operating Revenues
Operating revenues for the IHL System equaled $2.8 billion, $2.8 billion and $2.7 billion for fiscal years 2021, 2020 and
2019, respectively. Operating revenues increased 1.3% (or $34.8 million) and 1.2% (or $32.0 million) during 2021 and
2020, respectively. Major components of operating revenues are the UMMC patient care revenues (42.2% in 2021, 43.5%
in 2020 and 43.2% in 2019), net tuition and fees (23.3% in 2021, 23.8% in 2020 and 24.0% in 2019), grants and contracts
revenues (16.3% in 2021, 16.2% in 2020 and 15.7% in 2019), and sales and service revenues from auxiliary activities
(10.9% in 2021, 10.1% in 2020 and 11.1% in 2019). The following table summarizes the IHL System’s operating revenues
for the past three fiscal years.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
10
Operating Revenues
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
Tuition and fees, net $ 652,821,111 656,024,712 650,347,838 0.5 % (0.9)%
Grants and contracts 426,501,389 446,576,323 455,390,620 4.7 2.0
Federal appropriations 14,410,558 15,047,436 15,519,984 4.4 3.1
Sales and services of educational
departments
67,564,996 59,175,654 59,530,803 (12.4) 0.6
Auxiliary enterprises, net 301,979,850 277,624,810 303,503,843 (8.1) 9.3
Patient care revenues 1,176,072,282 1,197,526,479 1,176,245,589 1.8 (1.8)
Other
80,731,993 100,118,582 126,402,323 24.0 26.3
Total operating revenues $ 2,720,082,179 2,752,093,996 2,786,941,000 1.2 % 1.3 %
Changes between years
Net tuition and fee revenues decreased 0.9% (or $5.7 million) and increased 0.5% (or $3.2 million) during years 2021 and
2020, respectively. In 2021, most IHL institutions kept in-state tuition rates at the same level as 2020. In 2020 and 2019,
all IHL institutions raised their in-state tuition rates (average increase of 4.2% and 4.3%, respectively).
Grants and contracts revenue increased 2.0% (or $8.8 million) and 4.7% (or $20.1 million) during fiscal years 2021 and
2020, respectively, due to timing differences in both federal and state funding of student aid, research, and other various
grants and contracts.
Patient care revenues at UMMC decreased 1.8%, or $21.3 million from June 30, 2020 to 2021, after an increase of 1.8%,
or $21.5 million, from June 30, 2019 to 2020.
Operating Expenses
Operating expenses for the IHL System totaled $3.7 billion, $3.8 billion, and $3.6 billion for fiscal years 2021, 2020 and
2019, respectively. Operating expenses decreased a modest 1.3% (or $48.6 million) during 2021 after a 5.0% increase (or
$182.0 million) during 2020. Personnel costs (including fringe benefits) were the largest expense component for the IHL
System, representing 61.6% of the total in 2021, 62.1% of the total in 2020 and 62.4% in 2019. Other major components
include contractual services (13.2% in 2021, 13.1% in 2020, and 13.6% in 2019), commodities (12.3% in 2021, 11.6% in
2020, and 11.1% in 2019), and scholarships and fellowships (5.9% in 2021 and 2020, and 4.9% in 2019). The following
table summarizes the IHL System’s operating expenses (by major object category) for the past three fiscal years.
Operating Expenses
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
By major object category:
Salaries and wages $ 1,655,778,835 1,714,592,861 1,676,015,889 3.6 % (2.2)%
Fringe benefits 596,194,684 639,544,393 631,512,198 7.3 (1.3)
Travel
51,263,875 39,220,404 16,295,965 (23.5) (58.5)
Contractual services 490,922,090 497,655,634 493,488,217 1.4 (0.8)
Utilities 69,936,844 65,448,869 64,697,178 (6.4) (1.1)
Scholarships and fellowships 177,199,230 222,855,969 221,826,245 25.8 (0.5)
Commodities
400,969,012 441,578,818 462,118,373 10.1 4.7
Depreciation
162,945,647 166,891,329 170,848,756 2.4 2.4
Other
5,443,701 4,878,945 7,217,371 (10.4) 47.9
Total operating expenses
$ 3,610,653,918 3,792,667,222 3,744,020,192 5.0 % (1.3)%
Changes between years
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
11
The IHL System’s personnel expenses decreased in 2021 (2.0%, or $46.6 million) after an increase (4.8%, or
$102.9 million) in 2020. UMMC was able to reduce personnel costs by $44.1 million in 2021. Three institutions
experienced large increases in personnel costs in 2020: MSU ($22.7 million), UM ($12.2 million), and UMMC
($62.1 million). Travel expenses experienced its second year decline, a drastic cut in 2021 (58.5% or $22.9 million) after
a 23.5% (or $12.0 million) reduction in 2020. Contractual services are stable at $490 million. The cost for commodities
continues to rise, 4.7% (or $20.5 million) in 2021 and 10.1% ($40.6 million) in 2020. Scholarship and fellowship expenses
remained stable at $222 million after a dramatic increase of 25.8% (or $45.7 million) from 2019 to 2020.
As an alternative presentation model, the IHL System’s operating expenses are shown below by major functional
classification. Functional classifications are the traditional categories that universities have used in past financial
presentations (pre-GASB 34). These functions represent the types of programs and services that the universities generally
provide. For example, funds utilized to compensate a classroom professor or provide classroom materials would be
classified as instruction.
Operating Expenses
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
By function:
Instruction
$ 686,583,567 734,275,776 708,276,802 6.9 % (3.5)%
Research
398,647,090 379,720,277 340,001,037 (4.7) (10.5)
Public service
155,578,022 167,615,740 171,766,271 7.7 2.5
Academic support 161,058,006 159,274,875 168,004,666 (1.1) 5.5
Student services 95,869,389 93,575,381 90,556,891 (2.4) (3.2)
Institutional support 314,094,435 338,206,103 361,613,088 7.7 6.9
Operations and maintenance of plant
182,269,595 181,528,720 183,463,518 (0.4) 1.1
Student aid
184,284,320 232,484,261 236,454,524 26.2 1.7
Auxiliary enterprises 283,007,079 271,961,699 252,957,703 (3.9) (7.0)
Depreciation
162,945,647 166,891,329 170,848,756 2.4 2.4
Hospital
1,067,381,363 1,153,660,067 1,145,383,790 8.1 (0.7)
Other
1,004,804 1,364,384 1,602,133 35.8 17.4
Eliminations
(82,069,399) (87,891,390) (86,908,987) 7.1 (1.1)
Total operating expenses $ 3,610,653,918 3,792,667,222 3,744,020,192 5.0 % (1.3)%
Changes between years
Funding for the Instruction function continues to be one of the IHL System’s highest priorities. While instruction costs
decreased by 3.5% (or $26 million) in 2021 and increased by 6.9% ($47.7 million) in 2020, it still maintained an
approximate 20% share of total operations. Although institutional research (internal and external) and public service costs
have always commanded one of the System’s primary cost missions, research experienced its second year in a row of
decline, 10.5% (or $39.7 million) in 2021 and by 4.7% (or $18.9 million) in 2020; these costs represent approximately
13.7% and 14.4% of the IHL System’s total focus during 2021 and 2020, respectively. Institutional support costs typically
present the functions of the executive management department, general administration, logistical support services,
computing, public relations and development. These costs increased by 6.9% (or $23.4 million) in 2020 and by 7.7% (or
$24.1 million) in 2020. Auxiliary enterprise costs include all expenses associated with departments that primarily exist to
furnish goods or services to students, faculty, or staff and that charge a fee directly related to, although not necessarily
equal to, the cost of the goods and services. Auxiliary departments are required to be essentially self-supporting activities.
Examples are (1) student housing, (2) food services, (3) bookstores, and (4) intercollegiate athletics. Auxiliary expenses
decreased by 7.0% ($19.0 million) in fiscal year 2021 and by 3.9% ($11.0 million) in fiscal year 2020. Student Aid
expenses remained steady at $230 million after a dramatic 26.2% increase in 2020. Finally, hospital expenses remained
steady at $1.2 billion after experiencing an 8.1% increase (or $86.3 million) in 2020. The hospital operations contribution
ratio remained steady at 71%.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
12
The IHL System identified millions of dollars in inter-campus transactions that required elimination for financial statement
presentation purposes. Examples of such transactions would be student financial aid funds administered by the IHL
Executive Office that were directed to the campuses, as well as grant agreements between one or more IHL System
institutions in which one campus served as a primary recipient and the other campus acted as a sub-recipient.
Capital Asset and Debt Administration
At June 30, 2021, 2020, and 2019, the IHL System had approximately $4.5 billion, $4.5 billion, and $4.3 billion,
respectively, invested in a broad range of capital assets. These assets comprise land, construction in progress, livestock,
buildings and improvements (infrastructure), equipment and library books. They are stated net of accumulated
depreciation. The following table summarizes the IHL System’s capital assets for the past three fiscal years.
Capital Asset Summary
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
Capital assets not being depreciated $ 592,768,854 560,459,984 409,918,465 (5.5)% (26.9)%
Depreciable capital assets:
Improvements other than buildings 477,794,135 513,252,342 523,879,514 7.4 2.1
Buildings 4,300,061,832 4,509,120,737 4,755,424,420 4.9 5.5
Equipment
912,376,796 929,028,179 969,076,502 1.8 4.3
Library books 440,789,349 451,722,303 462,203,244 2.5 2.3
Total depreciable
capital assets 6,131,022,112 6,403,123,561 6,710,583,680 4.4 4.8
Total cost of capital
assets 6,723,790,966 6,963,583,545 7,120,502,145 3.6 2.3
Less accumulated depreciation (2,374,878,385) (2,509,107,627) (2,660,302,719) 5.7 6.0
Capital assets, net $ 4,348,912,581 4,454,475,918 4,460,199,426 2.4 % 0.1 %
Changes between years
Non-depreciable capital assets equaled $410 million, $560 million, and $593 million, at June 30, 2021, 2020, and 2019,
respectively. These assets principally consisted of land and construction in progress. The $32 million decrease in 2020
followed with a subsequent decrease of $151 million in 2021 was due to the completion of capitalized facility projects
transferred from CIP to a depreciable category.
At June 30, 2021, 2020, and 2019, the IHL System had $1.2 billion, $1.2 billion, and $1.3 billion, respectively, in bonded
debt, notes payable and capital lease obligations. This represents a 1.5% ($18.6 million) decrease in 2021 after a 3.5% (or
$45.5 million) decrease in 2020. The following table summarizes the IHL System’s long-term debt for the past three fiscal
years.
Long-Term Debt Summary
Years ended June 30,
2019 2020 2021 2019 to 2020 2020 to 2021
Bonds payable $ 1,252,788,253 1,226,183,775 1,203,621,565 (2.1)% (1.8)%
Notes payable 31,232,804 12,559,112 10,767,827 (59.8) (14.3)
Capital lease obligations 843,919 650,067 6,394,227 (23.0) 883.6
Total long-term debt $ 1,284,864,976 1,239,392,954 1,220,783,619 (3.5)% (1.5)%
Changes between years
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
13
Bonded debt decreased 1.8% (or $22.6 million) in 2021 and 2.1% (or $26.6 million) in 2020. During fiscal year 2021,
UMMC issued approximately $158 million of Series 2020B revenue bonds. The purpose of these bonds is to finance
capital expenditures and to refund the Series 2010B bonds, Series 2012A bonds, and Series 2012B bonds issued in the
original principal amount of $125 million ($20.6 million economic gain). During fiscal year 2020, UM and UMMC issued
approximately $76.7 million and $24.4 million, respectively, in new bond refundings. UM issued $76.7 million in Series
2019A and 2019B for the purpose of refunding all or a portion of Series 2013(C), 2015, and the Promissory Note Series
2017 (total economic gain of $6.9 million). UMMC issued $24.4 million in Series 2019 bonds for the purpose of financing
capital expenditures and to refund the Series 2010A ($3.9 million economic gain). Notes Payable decreased by $1.8 million
in 2021 and $18.7 million in 2020.
Designated Revenues
Bond indentures previously issued, and those that may be issued in the future by the institution’s Educational Building
Corporations (EBC) are payable from designated revenues. The IHL Board covenants under terms of its various bond
agreements that if designated revenues are insufficient to satisfy the IHL Board’s obligations, the IHL Board will provide
amounts from any other legally available source and will then allocate the same to cure the insufficiency. The following
table provides a history of all designated revenues available to the IHL Board from fiscal years 2017 through 2021.
Designated Revenues
1
and Unrestricted Net Positions (excludes UMMC, Board Office, and MCVS)
Years ended June 30,
2017 2018 2019 2020 2021
Tuition, net
2
$ 585,081,567 606,693,893 620,658,969 620,923,011 613,221,706
Sales and services 60,369,071 62,469,346 66,708,030 57,514,245 57,399,481
Auxiliary enterprises, net
2
300,085,021 293,824,703 296,965,608 272,846,066 298,444,150
Other
3
45,829,086 41,072,784 53,384,691 52,735,117 55,455,591
Sub-total 991,364,745 1,004,060,726 1,037,717,298 1,004,018,439 1,024,520,928
State appropriations 490,804,883 460,659,547 461,013,005 477,248,168 465,521,243
Unrestricted net positions
4
— — — — —
Total $ 1,482,169,628 1,464,720,273 1,498,730,303 1,481,266,607 1,490,042,171
1
Designated Revenues represent all unrestricted revenues of the IHL System (excluding the member Universities
indicated above) which include without limitation, net tuition and auxiliary fees, sales and services, other operating
revenue, state appropriations and unrestricted net position balances.
2
Tuition and auxiliary enterprise revenues are net of scholarship allowances in the form of reduced tuition, room and
board.
3
Other designated revenues include federal appropriations, other operating revenues, and interest earned on loans to
students.
4
The unrestricted net positions of $(527,527,704) for 2017, $(685,017,873) for 2018, $(616,469,699) for 2019,
$(572,666,659) for 2020, and $(447,531,102) for 2021, did not contribute to total designated revenues since fiscal
year 2015, and therefore have been excluded from the table. The decline in the unrestricted net assets fund balance
since 2015 is the result of the implementation of GASB Statement Nos. 68 and 75 for pension and OPEB liabilities.
Economic Outlook
The IHL System began the 2021 fiscal year with an anticipated systemwide operating budget increase of $63 million. Fiscal
year 2021 closed strong with a $233 million net increase (see the SRECNP summary table on page 9 of management
discussion and analysis), although actual revenues fell short of budgeted expectations due to effects of the COVID-19
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Management’s Discussion and Analysis (Unaudited)
June 30, 2021 and 2020
14
pandemic. For fiscal year 2022, general education funding from the State of Mississippi will increase by 8.15% (or $28
million), and the IHL system expects tuition and auxiliary revenues to be flat. In 2022, state appropriated revenues will
comprise approximately 29.1% of the total E&G budget, while self‑generated tuition revenues will approximate 65.6% of
the total revenues. In comparison, in fiscal year 2010, state appropriations represented 42% of revenues, while tuition
revenue equaled 48% of the total.
The IHL System maintains high credit ratings from Moody’s (Aa2), Fitch (AA) and Standard & Poor’s (AA-). Achieving
and maintaining these high credit ratings provide the IHL System higher degree of flexibility in securing capital funds on
the most competitive terms. This flexibility, along with ongoing efforts toward revenue diversification and cost containment,
will enable the IHL System to provide the necessary resources to support a level of excellence in service to students, patients,
the research community, the State of Mississippi and the nation as a whole.
As a labor-intensive organization, the IHL System faces competitive pressures related to attracting and retaining faculty and
staff. Moreover, consistent with the national landscape, the cost of the IHL System’s health benefits for its employees
continues to increase. The IHL System has in the past and will continue to take proactive steps to respond to these challenges
of rising costs. An example of continued steps includes the preparation of three-year business plans by the institutions.
While it is not possible at this time to predict the ultimate results, management at each institution has a proven track record
of successfully adapting to this present economic environment while continuing to search for new opportunities to
compliment state support. The IHL System’s financial goal, as always, is to deliver quality services to its customers and
constituents while maintaining financial integrity.
This financial report is designed to provide a general overview of the finances of the IHL System. Questions concerning
any of the information provided in this report or requests for additional financial information should be addressed to:
Board of Trustees
Department of Finance
3825 Ridgewood Road
Jackson, MS 39211
BASIC FINANCIAL STATEMENTS
(THIS PAGE LEFT BLANK INTENTIONALLY)
2021 2020
Assets and Deferred Outflow
s
Current Assets:
Cash and cash equivalents $ 961,478,728 881,111,528
Short term investments 275,609,277 247,097,053
Accounts receivable, net 371,148,587 411,116,497
Student notes receivable, net 20,820,536 17,631,345
Inventories 42,070,625 36,212,848
Prepaid expenses 26,286,239 36,424,187
Other current assets 11,059,112 8,550,181
Total current assets 1,708,473,104 1,638,143,639
Non-Current Assets:
Restricted cash and cash equivalents 140,763,573 108,664,579
Restricted short-term investments 1,411,114 1,404,677
Endowment investments 403,568,629 320,274,046
Other long-term investments 624,208,898 415,537,268
Student notes receivable, net 68,196,575 78,810,321
Beneficial interest in irrevocable trust 43,991,738 35,933,062
Capital assets, net 4,460,199,426 4,454,475,918
Other noncurrent assets 2,619,339 3,544,461
Total noncurrent assets 5,744,959,292 5,418,644,332
Total assets 7,453,432,396 7,056,787,971
Deferred outflows of resources 476,671,893 333,082,766
Total assets and deferred outflows of resources $ 7,930,104,289 7,389,870,737
Liabilities, Deferred Inflows and Net Positio
n
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 319,381,944 260,039,453
Unearned revenues 163,949,404 139,201,702
Accrued leave liabilities - current portion 18,133,551 24,633,778
Long-term liabilities - current portion 65,570,890 66,097,575
Other current liabilities 170,158,839 177,279,267
Total current liabilities 737,194,628 667,251,775
Noncurrent liabilities:
Accrued leave liabilities 122,888,528 120,764,209
Deposits refundable 1,687,442 1,834,844
Long-term liabilities 1,218,279,088 1,240,532,988
Net pension liability 3,123,010,235 2,843,514,960
Net OPEB liability 146,002,208 157,499,028
Other noncurrent liabilities 40,825,309 47,688,067
Total noncurrent liabilities 4,652,692,810 4,411,834,096
Total liabilities 5,389,887,438 5,079,085,871
Deferred inflows of resources 108,078,232 111,805,741
Total liabilities and deferred inflows of resources $ 5,497,965,670 5,190,891,612
Net Position:
Net investment in capital assets $ 3,263,116,965 3,241,081,161
Restricted for:
Nonexpendable:
Scholarships and fellowships 30,634,500 27,324,159
Research 5,864,715 4,129,474
Other purposes 160,883,400 151,115,577
Expendable:
Scholarships and fellowships 56,845,137 39,320,223
Research 56,296,447 74,812,406
Capital projects 17,305,459 11,587,740
Debt service 21,336,767
22,056,247
Loans 56,656,205 53,970,250
Other purposes 165,957,078 121,756,019
Unrestricted (1,402,758,054) (1,548,174,131)
Total net position $ 2,432,138,619 2,198,979,125
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Statements of Net Position
June 30, 2021 and 2020
15
2021 2020
Assets
Cash and cash equivalents $ 3,009,958 1,562,618
Restricted cash 3,301,191 6,273,651
Restricted short-term investments 4,000,000 —
Accrued interest, other rreceivables and prepaid assets 165,355 120,459
Receivable from MSU Alumni Association 135,249 26,102
Pledges receivable, net 40,761,967 32,886,943
Investments 690,339,682 499,255,570
Present value of amounts due from externally managed trusts 59,215,668 49,559,753
Land, buildings, and equipment, net 13,157,746 9,978,892
Total assets $ 814,086,816 599,663,988
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued liabilities $ 1,125,080 1,491,022
Agency payable 7,301,191 6,273,651
Liabilities under split interest agreements 8,709,271 8,083,815
Payable to Bulldog Club 1,108,900 2,634,238
Payable to Mississippi State University 382,596 240,771
Note payable 2,941,285 —
Total liabilities 21,568,323 18,723,497
Net assets:
Without donor restrictions:
Net assets attributable to the Foundation 55,440,281 50,918,074
Net assets attributable to noncontrolling interest 52,094,122 38,874,655
Total net assets without donor restrictions 107,534,403 89,792,729
With donor restrictions 684,984,090 491,147,762
Total net assets 792,518,493 580,940,491
Total liabilities and net assets $ 814,086,816 599,663,988
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
MISSISSIPPI STATE UNIVERSITY FOUNDATION, INC.
Statements of Financial Position
June 30, 2021 and 2020
16
2021 2020
Assets
Cash and cash equivalents $ 11,411,775 12,974,805
Pledges receivable, net 73,619,230 80,841,525
Investments 616,430,187 496,354,507
Beneficial interest in remainder trust 11,543,644 10,229,426
Property and equipment, net 1,971,997 2,091,723
Other assets 1,549,643 1,322,329
Total assets $ 716,526,476 603,814,315
Liabilities and Net Assets
Liabilities:
Funds held for others $ 26,531,386 23,079,151
Liabilities under remainder trusts and gift annuities 4,307,259 3,223,775
Other liabilities 5,282,838 2,932,785
Total liabilities 36,121,483 29,235,711
Net assets:
Without donor restrictions 19,306,323 15,782,334
With donor restrictions 661,098,670 558,796,270
Total net assets 680,404,993 574,578,604
Total liabilities and net assets $ 716,526,476 603,814,315
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF MISSISSIPPI FOUNDATION
Statements of Financial Position
June 30, 2021 and 2020
17
2021 2020
Assets
Cash and cash equivalents $ 3,993,951 2,663,185
Accrued earnings 104,195 110,245
Prepaid assets and other receivables 1,240,378 298,154
Pledges receivable, net 3,764,152 6,970,246
Investments 147,947,893 118,205,601
Cash surrender value of life insurance 2,765,180 2,711,628
Amounts due from externally managed trusts 14,608,988 9,969,592
Property and equipment, net 1,567,480 233,501
Total assets $ 175,992,217 141,162,152
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued expenses $ 1,066,276 589,498
Gift annuities payable 68,929 103,222
Total liabilities 1,135,205 692,720
Net assets:
Without donor restrictions 17,595,188 12,553,396
With donor restrictions 157,261,824 127,916,036
Total net assets 174,857,012 140,469,432
Total liabilities and net assets $ 175,992,217 141,162,152
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF SOUTHERN MISSISSIPPI FOUNDATION
Statements of Financial Position
June 30, 2021 and 2020
18
2021 2020
Operating revenues:
Tuition and fees: $ 981,575,970 987,678,748
Less scholarship allowances (325,703,930) (327,790,345)
Less bad debt expense (5,524,202) (3,863,691)
Net tuition and fees 650,347,838 656,024,712
Federal appropriations 15,519,984 15,047,436
Federal grants and contracts 340,225,921 336,284,371
State grants and contracts 35,382,512 29,260,445
Nongovernmental grants and contract
s
79,782,187 81,031,507
Sales and services of educational departments 59,530,803 59,175,654
Auxiliary enterprises:
Student housin
g
92,819,934 97,050,698
Food services 25,033,175 31,022,724
Bookstore 5,249,873 4,926,305
Athletics 178,140,409 146,674,118
Other auxiliary revenue
s
32,523,789 31,298,070
Less auxiliary enterprise scholarship allowances (30,263,337) (33,347,105)
Interest earned on loans to student
s
1,534,829 1,181,155
Patient care revenues, ne
t
1,176,245,589 1,197,526,479
Other operating revenues, ne
t
124,867,494 98,937,427
Total operating revenues 2,786,941,000 2,752,093,996
Operating expenses:
Salaries and wages 1,676,015,889 1,714,592,861
Fringe benefits 631,512,198 639,544,393
Travel 16,295,965 39,220,404
Contractual services 493,488,217 497,655,634
Utilities 64,697,178 65,448,869
Scholarships and fellowships 221,826,245 222,855,969
Commoditie
s
462,118,373 441,578,818
Depreciation 170,848,756 166,891,329
Other operating expenses 7,217,371 4,878,945
Total operating expenses 3,744,020,192 3,792,667,222
Operating loss (957,079,192) (1,040,573,226)
Nonoperating revenues (expenses):
State appropriations 686,768,667 702,265,275
Gifts and grants 345,002,120 267,089,289
Investment income, net of investment expens
e
88,564,182 17,972,781
Interest expense on capital asset-related debt (36,587,673) (36,359,654)
Other nonoperating revenue
s
32,960,905 11,011,293
Other nonoperating expense
s
(34,865,973) (7,028,693)
Total nonoperating revenues, net 1,081,842,228 954,950,291
Income (loss) before other revenues, expenses, gains and losses 124,763,036 (85,622,935)
Other revenues, expenses, gains and losses:
Capital grants and gifts 59,089,143 22,791,234
State appropriations restricted for capital purposes 38,379,747 84,817,400
Additions to permanent endowment
s
403,128 270,730
Other additions 16,421,242 24,829,283
Other deletions (5,896,802) (5,121,959)
Change in net position 233,159,494 41,963,753
Net position, beginning of the year 2,198,979,125 2,157,015,372
Net position, end of the year $ 2,432,138,619 2,198,979,125
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Statements of Revenues, Expenses and Changes in Net Position
Years ended June 30, 2021 and 2020
19
Without donor
restrictions
With donor
restrictions Total
Revenues and support:
Contributions $ 12,143,920 51,225,825 63,369,745
N
et investment income 15,783,425 160,523,641 176,307,066
Change in value of split interest agreements — 9,011,007 9,011,007
Other 4,980,312 328,162 5,308,474
N
et assets released from restrictions 27,252,307 (27,252,307) —
Total revenues and support
60,159,964 193,836,328 253,996,292
Expenditures:
Program services:
Contributions and support for Mississippi State
Universit
y
30,907,506 — 30,907,506
Contributions and support for Bulldog Club 1,231,214 — 1,231,214
Contributions and support for MSU Alumni
Association 879,639 — 879,639
Total program services
33,018,359 — 33,018,359
Supporting services:
General administrative 4,646,339 — 4,646,339
Fund raising 3,956,030 — 3,956,030
Total supporting services
8,602,369 — 8,602,369
Total expenditures
41,620,728 — 41,620,728
Change in net assets before
noncontrolling interests
18,539,236 193,836,328 212,375,564
Payments to noncontrolling interests (797,562) — (797,562)
Total change in net assets
17,741,674 193,836,328 211,578,002
Net assets, beginning of the year 89,792,729 491,147,762 580,940,491
Net assets, end of the year $ 107,534,403 684,984,090 792,518,493
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
MISSISSIPPI STATE UNIVERSITY FOUNDATION, INC.
Statement of Activities
Year ended June 30, 2021
20
Without donor
restrictions
With donor
restrictions Total
Revenues and support:
Contributions $ 22,613,574 28,555,279 51,168,853
N
et investment income 1,288,330 219,333 1,507,663
Change in value of split interest agreements — (1,199,648) (1,199,648)
Other 5,483,673 138,184 5,621,857
N
et assets released from restrictions 47,526,386 (47,526,386) —
Total revenues and support
76,911,963 (19,813,238) 57,098,725
Expenditures:
Program services:
Contributions and support for Mississippi State
Universit
y
55,756,772 — 55,756,772
Contributions and support for Bulldog Club 2,914,009 — 2,914,009
Contributions and support for MSU Alumni
Association 874,340 — 874,340
Total program services
59,545,121 — 59,545,121
Supporting services:
General administrative 4,665,034 — 4,665,034
Fund raising 3,842,946 — 3,842,946
Total supporting services
8,507,980 — 8,507,980
Total expenditures
68,053,101 — 68,053,101
Change in net assets before
noncontrolling interests
8,858,862 (19,813,238) (10,954,376)
Payments to noncontrolling interests (8,028,861) — (8,028,861)
Total change in net assets
830,001 (19,813,238) (18,983,237)
Net assets, beginning of the year 88,962,728 510,961,000 599,923,728
Net assets, end of the year $ 89,792,729 491,147,762 580,940,491
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
MISSISSIPPI STATE UNIVERSITY FOUNDATION, INC.
Statement of Activities
Year ended June 30, 2020
21
Without donor
restrictions
With donor
restrictions Total
Revenues, gains, and other support:
Contributions, gifts and bequests $ 30,000 44,461,037 44,491,037
Investment return, net 5,068,727 129,726,862 134,795,589
Change in value of split interest agreements — 762,405 762,405
Gift management fees 1,918,640 (1,918,640) —
Development fees 1,533,383 (1,533,383) —
Other income 940,584 1,019,246 1,959,830
Total revenues, gains, and other support
9,491,334 172,517,527 182,008,861
N
et assets released from restrictions/
redesignated by donor:
Appropriation from donor endowment 9,859,894 (9,859,894) —
Satisfaction of program restrictions 60,355,233 (60,355,233) —
Expenses:
Support for University activities:
Academic 5,841,297 — 5,841,297
Scholarship 9,419,269 — 9,419,269
Programmatic 14,491,959 — 14,491,959
University of Mississippi Medical Center 41,504,609 — 41,504,609
General and administrative expenses 3,007,437 — 3,007,437
Fund-raising expenses 1,917,901 — 1,917,901
Total expenses
76,182,472 — 76,182,472
Change in net assets
3,523,989 102,302,400 105,826,389
Net assets, beginning of the year 15,782,334 558,796,270 574,578,604
Net assets, end of the year $ 19,306,323 661,098,670 680,404,993
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF MISSISSIPPI FOUNDATION
Statement of Activities
Year ended June 30, 2021
22
Without donor
restrictions
With donor
restrictions Total
Revenues, gains, and other support:
Contributions, gifts and bequests $ — 58,663,178 58,663,178
Investment return, net 1,530,275 (26,016,208) (24,485,933)
Change in value of split interest agreements — 631,182 631,182
Gift management fees 1,819,436 (1,819,436) —
Development fees 1,450,096 (1,450,096) —
Other income 953,216 3,394,304 4,347,520
Total revenues, gains, and other support
5,753,023 33,402,924 39,155,947
N
et assets released from restrictions/
redesignated by donor:
Appropriation from donor endowment 8,747,683 (8,747,683) —
Satisfaction of program restrictions 28,965,475 (28,965,475) —
Expenses:
Support for University activities:
Academic 5,183,557 — 5,183,557
Scholarship 9,336,811 — 9,336,811
Programmatic 19,086,224 — 19,086,224
University of Mississippi Medical Center 4,998,169 — 4,998,169
General and administrative expenses 2,914,710 — 2,914,710
Fund-raising expenses 2,183,438 — 2,183,438
Total expenses
43,702,909 — 43,702,909
Change in net assets
(236,728) (4,310,234) (4,546,962)
Net assets, beginning of the year 16,019,062 563,106,504 579,125,566
Net assets, end of the year $ 15,782,334 558,796,270 574,578,604
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF MISSISSIPPI FOUNDATION
Statement of Activities
Year ended June 30, 2020
23
Without donor
restrictions
With donor
restrictions Total
Revenues, gains, and other support:
Contributions $ 1,906,862 15,655,441 17,562,303
N
et investment gain 6,640,602 20,825,670 27,466,272
Gain or loss on externally managed trusts — 68,371 68,371
Change in value of split interest agreements — 880,965 880,965
Change in value - other 1,044 55,481 56,525
Other 45,902 15,885 61,787
Total revenues, gains, and other support
8,594,410 37,501,813 46,096,223
Changes in restrictions:
Change in restriction by donors 17,365 (17,365) —
N
et assets released from restrictions 8,138,660 (8,138,660) —
Expenses:
Program services:
Contributions and support for The
University of Southern Mississippi 8,686,568 — 8,686,568
Supporting services:
General and administrative 1,811,601 — 1,811,601
Fund-raisin
g
1,210,474 — 1,210,474
Total expenses
11,708,643 — 11,708,643
Change in net assets
5,041,792 29,345,788 34,387,580
Net assets, beginning of the year 12,553,396 127,916,036 140,469,432
Net assets, end of the year $ 17,595,188 157,261,824 174,857,012
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF SOUTHERN MISSISSIPPI FOUNDATION
Statement of Activities
Year ended June 30, 2021
24
Without donor
restrictions
With donor
restrictions Total
Revenues, gains, and other support:
Contributions $ 2,178,503 6,638,792 8,817,295
N
et investment gain 2,283,296 (477,998) 1,805,298
Change in value of split interest agreements — 2,115,817 2,115,817
Change in value - other 1,276 44,948 46,224
Other 24,141 28,959 53,100
Total revenues, gains, and other support
4,487,216 8,350,518 12,837,734
Changes in restrictions:
Change in restriction by donors (5,000) 5,000 —
N
et assets released from restrictions 7,857,382 (7,857,382) —
Expenses:
Program services:
Contributions and support for The
University of Southern Mississippi 8,350,046 — 8,350,046
Supporting services:
General and administrative 1,701,761 — 1,701,761
Fund-raisin
g
1,486,292 — 1,486,292
Total expenses
11,538,099 — 11,538,099
Change in net assets
801,499 498,136 1,299,635
Net assets, beginning of the year 11,751,897 127,417,900 139,169,797
Net assets, end of the year $ 12,553,396 127,916,036 140,469,432
See accompanying notes to financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
DISCRETELY PRESENTED COMPONENT UNIT --
THE UNIVERSITY OF SOUTHERN MISSISSIPPI FOUNDATION
Statement of Activities
Year ended June 30, 2020
25
2021 2020
Operating activities:
Tuition and fees $ 642,903,873 662,678,813
Grants and contracts 482,743,277 425,765,942
Sales and services of educational departments 59,572,626 57,547,107
Payments to suppliers (923,841,468) (939,928,358)
Payments to employees for salaries and benefits (2,176,809,921) (2,220,097,311)
Payments for utilities (64,585,663) (66,316,858)
Payments for scholarships and fellowships (222,527,108) (222,888,643)
Loans issued to students (8,405,515) (6,421,644)
Collection of loans from students 16,778,564 15,882,509
Auxiliary enterprise charges:
Student housing 77,557,057 85,721,033
Food services 22,771,867 27,120,251
Bookstore 4,210,124 3,613,222
Athletics 178,923,866 135,989,102
Other auxiliary enterprises 21,821,925 21,691,490
Patient care services 1,205,721,855 1,318,711,122
Interest earned on loans to students 1,439,688 1,049,716
Other receipts 148,473,827 108,295,027
Other payments (8,370,089) (13,970,881)
Net cash used in operating activities (541,621,215) (605,558,361)
Noncapital financing activities:
State appropriations 691,724,249 691,916,472
Gifts and grants for other than capital purposes 342,232,755 272,808,053
Private gifts for endowment purposes 623,399 168,994
Federal loan program receipts 444,233,773 492,117,952
Federal loan program disbursements (458,116,649) (490,305,097)
Other sources 13,647,592 13,329,330
Other uses (5,728,660) (4,036,259)
Net cash provided by noncapital financing activities 1,028,616,459 975,999,445
Capital and related financing activities:
Proceeds from capital debt 165,562,807 120,299,495
Cash paid for capital assets (166,539,523) (203,092,468)
Capital appropriations received 24,016,487 31,457,718
Capital grants and contracts received 63,005,971 77,571,177
Proceeds from sales of capital assets 3,304,832 442,843
Principal paid on capital debt and leases (177,424,809) (160,357,359)
Interest paid on capital debt and leases (53,954,239) (51,687,893)
Other sources 4,084,581 9,042,402
Other uses (4,693,890) (6,325,875)
Net cash used in capital and related financing activities (142,637,783) (182,649,960)
Investing activities:
Proceeds from sales and maturities of investments 529,366,182 806,513,160
Interest received on investments 31,227,675 31,322,602
Purchases of investments (792,485,124) (770,374,274)
Net cash provided by (used in) investing activities (231,891,267) 67,461,488
Net change in cash and cash equivalents 112,466,194 255,252,612
Cash and cash equivalents, beginning of the year 989,776,107 734,523,495
Cash and cash equivalents, end of the year $ 1,102,242,301 989,776,107
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Statements of Cash Flows
Years ended June 30, 2021 and 2020
26
(Continued)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Statements of Cash Flows
Years ended June 30, 2021 and 2020
2021 2020
RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES
Operating loss $ (957,079,192) (1,040,573,226)
Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation expense 170,848,756 166,891,329
Self-insured claims expense 1,359,719 8,598,453
Provision for uncollectible receivables 213,256,652 178,027,541
Other 1,550,404 1,004,542
Changes in Assets and Liabilities:
(Increase) Decrease in Assets:
Receivables, Net (166,607,310) (175,236,134)
Inventories (5,857,776) 1,821,275
Prepaid Expenses 78,538 2,575,322
Loans to Students (1,244,258) (548,024)
Deferred outflows of resources (138,442,290) (65,546,312)
Other Assets (2,768,804) (10,073,266)
Increase (Decrease) in Liabilities:
Accounts Payables and Accrued Liabilities 65,779,059 23,288,222
Unearned Revenue 33,670,034 (6,334,555)
Deposits Refundable 1,003,282 (14,261)
Accrued Leave Liability (4,324,282) 23,669,699
Net pension liability 279,495,275 194,196,870
Net OPEB liability (11,496,820) 15,667,268
Deferred inflows of resources (9,605,846) (30,290,566)
Other Liabilities (11,236,356) 107,317,462
Total Adjustments 415,457,977 435,014,865
Net cash used in operating activities $ (541,621,215) (605,558,361)
Reconciliation of cash and cash equivalents:
Current assets - cash and cash equivalents $ 961,478,728 881,111,528
Noncurrent assets - restricted cash and cash equivalents 140,763,573 108,664,579
Cash and cash equivalents, end of the year $ 1,102,242,301 989,776,107
Noncash capital related financing and investing activities:
Capital assets acquired through donations and capital leases $ 9,398,713 9,978,531
Capital assets appropriated by the State of Mississippi 24,429,747 66,774,238
See accompanying notes to financial statements.
27
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
28
Note 1
Summary of Significant Accounting Policies
(a) Nature of Operations
Through its member universities, the State of Mississippi Institutions of Higher Learning (IHL System) serves the state,
national and international communities by providing its students with academic instruction, by conducting research and
other activities that advance fundamental knowledge and by disseminating knowledge to the people of Mississippi and
throughout the world.
(b) Reporting Entity
The Mississippi Constitution was amended in 1943 to create a separate legal entity and establish a Board of Trustees
of State Institutions of Higher Learning (the Board). This constitutional board provides management and control of
Mississippi’s system of universities. The Board meets monthly and oversees the eight public universities, the University
of Mississippi Medical Center and various off-campus centers and locations throughout the state. Each of these member
universities is a member of the IHL System. The IHL System is considered a component unit of the State of Mississippi
reporting entity.
The current twelve Board members of the IHL System were appointed by the Governor and confirmed by the
Mississippi Senate for nine-year terms, representing the three Supreme Court Districts.
Each of the eight universities and the University of Mississippi Medical Center has established its own educational
building corporation (a nonprofit corporation incorporated in the State of Mississippi) in accordance with Section 37-
101-61 of the Mississippi Code Annotated of 1972. The purpose of these corporations is for the acquisition,
construction and equipping of facilities and land for the various universities. In accordance with Governmental
Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus-An Amendment of
GASB Statements No. 14 and No. 34, the educational building corporations are deemed to be material component units
of the IHL System but are presented on a blended basis in the accompanying operations. These blended component
units provide services entirely, or almost entirely, to their respective universities. See note 9 for detailed educational
building corporation activities.
The following is a list of abbreviations used throughout the report for the member universities of the State of Mississippi
Institutions of Higher Learning (collectively the IHL System):
ASU Alcorn State University
DSU Delta State University
JSU Jackson State University
MSU Mississippi State University
MUW Mississippi University for Women
MVSU Mississippi Valley State University
UM University of Mississippi
USM University of Southern Mississippi
UMMC University of Mississippi Medical Center
IHL Executive Office Institutions of Higher Learning – Executive Office
UPM University Press of Mississippi
MCVS Mississippi Commission for Volunteer Service – Off-campus entity
The IHL System reports the following discretely presented component units, which also have separate stand-alone
audits performed, which can be obtained by requesting a copy from the finance department of each respective university
below:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
29
(i) Mississippi State University Foundation, Inc.
The Mississippi State University Foundation, Inc. is a legally separate, tax-exempt not for profit entity established to
solicit and manage funds for the benefit of Mississippi State University.
(ii) University of Mississippi Foundation
The University of Mississippi Foundation is a legally separate, tax-exempt not for profit nonstock corporation formed
for the benefit of the University of Mississippi.
(iii) University of Southern Mississippi Foundation
The University of Southern Mississippi Foundation is a legally separate, tax-exempt not for profit entity formed to
provide support to the University of Southern Mississippi and its students.
These foundations are private nonprofit organizations that report under Financial Accounting Standards Board (FASB)
standards, including Accounting Standards Codification (ASC) Topic 958, Not-for-Profit Entities. As such, certain
revenue recognition criteria and presentation features are different from Governmental Accounting Standards Board
(GASB) revenue recognition criteria and presentation features. No modifications have been made to the foundations’
financial information in the IHL System’s financial reporting entity for these differences.
These foundations act primarily as fund-raising organizations to supplement the resources that are available to the
respective universities in support of their programs. The governing body of each foundation is self-perpetuating and
consists of graduates and friends of the respective universities. Although the respective universities do not control the
timing or amount of receipts from the foundations, most resources, or income thereon, which the foundations hold and
invest are restricted to the activities of the respective universities by the donors. Because these restricted resources held
by the foundations can only be used by, or for the benefit of, the respective universities, these foundations are
considered discretely presented component units of the IHL System.
The Mississippi State University Foundation, Inc., the University of Mississippi Foundation, and the University of
Southern Mississippi Foundation each make distributions to their respective universities for support. During the years
ended June 30, 2021 and 2020, support distributions were as follows:
2021 2020
Mississippi State University Foundation, Inc. $ 30,907,506 55,756,772
University of Mississippi Foundation 71,257,134 38,604,761
University of Southern Mississippi Foundation 8,686,568 8,350,046
(c) Basis of Accounting
The financial statements of the IHL System have been prepared in accordance with GASB Statement No. 34, Basic
Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, as amended
by GASB Statement No. 35, Basic Financial Statements – and Management’s Discussion and Analysis – for Public
Colleges and Universities. The IHL System is reporting as a special-purpose government engaged in business-type
activities. In accordance with business-type activity reporting, the IHL System presents management’s discussion and
analysis; statements of net position; statements of revenues, expenses and changes in net position; statements of cash
flows; and notes to the financial statements. The financial statements are prepared using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized
when earned, and expenses are recorded when an obligation has been incurred. All significant transactions among
departments, campuses, and auxiliary units of the IHL System have been eliminated.
Grant and contract revenues, which are received or receivable from external sources, are recognized as revenues to the
extent of related expenses or satisfaction of eligibility requirements. State appropriations are recognized as
nonoperating revenues when eligibility requirements are satisfied.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
30
(d) New Accounting Standards
On June 30, 2021, the IHL System adopted GASB Statement No. 84, Fiduciary Activities. This standard establishes
criteria to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. The adoption of this statement had no impact on the financial
statements.
During fiscal year 2021, the IHL System adopted GASB Statement No. 90, Majority Equity Interests. The primary
objectives of this statement are to improve the consistency and comparability of reporting a government’s majority
equity interest in a legally separate organization and to improve the relevance of financial statement information for
certain component units.
(e) Recently Issued Accounting Standards
The IHL System is currently evaluating the following pronouncements that are most likely to impact the system’s
financial reporting.
In June 2017, the GASB issued Statement No. 87, Leases. This standard establishes recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or
outflows of resources based on the payment provisions of the contract. Under this statement, a lessee is required to
recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments’ leasing activities. The original effective date of this Statement was for reporting periods beginning after
December 15, 2019. This Statement is now effective for reporting periods beginning after June 15, 2021.
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a
Construction Period. This standard establishes accounting requirements for interest cost incurred before the end of a
construction period. Such costs should now be recognized as an expense in the period in which the cost is incurred for
financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred
before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-
type activity or enterprise fund. The Statement reiterates that in financial statements prepared using the current financial
resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an
expenditure on a basis consistent with governmental fund accounting principles. The original effective date of this
Statement was for reporting periods beginning after December 15, 2019. This Statement is now effective for reporting
periods beginning after December 15, 2020.
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this statement
are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice
associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related
note disclosures. The original effective date of this Statement was for reporting periods beginning after December 15,
2020. This Statement is now effective for reporting periods beginning after December 15, 2021.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. As a result of global
reference rate reform, the London Interbank Offered Rate (LIBOR) is expected to cease to exist in its current form at
the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR
with other reference rates. The removal of LIBOR as an appropriate benchmark interest rate was effective for reporting
periods ending after December 31, 2021 with all other requirements of this Statement effective for reporting periods
beginning after June 15, 2020. This statement is now effective for reporting periods beginning after June 15, 2021.
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability
Payment Arrangements. The primary objective of this statement is to improve financial reporting by addressing issues
related to public-private and public-public partnership arrangements (PPPs). A PPP is an arrangement in which a
government contracts with an operator to provide public services by conveying control of the right to operate or use a
nonfinancial asset for a period of time in an exchange or exchange-like transaction. The effective date of this statement
is for reporting periods beginning after June 15, 2022.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
31
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This
statement provides guidance on the accounting and financial reporting for subscription-based information technology
arrangements (SBITAs) for government end users. SBITAs provide governments with access to vendors’ IT software
and associated tangible capital assets for subscription payments without granting perpetual license or title to those
assets. A SBITA is defined as a contract that conveys control of the right to use another party’s information technology
software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an
exchange or exchange-like transaction. Under this statement, a government generally should recognize a right-to-use
subscription asset—an intangible asset—and a corresponding subscription liability. The effective date of this statement
is for fiscal years beginning after June 15, 2022.
The impact of these pronouncements on the IHL System’s financial statements is currently being evaluated and has not
yet been fully determined.
(f) Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
Significant estimates include the determination of the allowances for uncollectible accounts and contractual
adjustments and estimated third-party payor settlements, included as other current assets and as other current liabilities,
relating to the IHL System’s patient services. In addition, laws and regulations governing the Medicare and Medicaid
programs are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that
recorded estimates associated with these programs could change by a material amount in the near term.
Included in other noncurrent liabilities are unpaid claims liabilities relating to the IHL System’s self-insured workers’
compensation, unemployment, and tort liability funds. The liabilities for these unpaid claims and loss adjustment
expenses are determined using both evaluations of each claim and statistical analyses and represent the estimated
ultimate net cost of all claims and expenses incurred through the end of the reporting period. The determinations of
claims payable include estimates that are particularly susceptible to change in the near term. Management believes that
liabilities established for these unpaid claims at June 30, 2021 and 2020 are adequate to cover the ultimate net cost of
claims and contractual adjustments, but these liabilities are necessarily based upon estimates, and accordingly, the
amount ultimately paid will be more or less than such estimates. The methods for making such estimates and for
establishing the resulting liabilities are continually reviewed, and any adjustments are reflected in operations currently.
The IHL System’s investments are invested in various types of investment securities within various markets. Investment
securities are exposed to several risks, such as interest rate, market and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect the amounts reported in the IHL System’s
financial statements.
(g) Cash Equivalents
The IHL System considers all highly liquid investments with an original maturity of three months or less to be cash
equivalents.
(h) Short-Term Investments
Short-term investments are investments that are not cash equivalents but mature within the next fiscal year.
(i) Accounts Receivable, Net
Accounts receivable consist of tuition and fee charges to students and patient accounts at UMMC. Accounts receivable
also include amounts due from federal and state governments, and nongovernmental sources, in connection with
reimbursement of allowable expenses made pursuant to the IHL System’s grants and contracts. Accounts receivable
are recorded net of an allowance for doubtful accounts.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
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June 30, 2021 and 2020
32
(j) Student Notes Receivable, Net
Student notes receivable consist of federal, state and institutional loans made to students for the purpose of paying
tuition and fee charges. Loan balances expected to be paid during the next fiscal year are presented on the statement of
net position as current assets. Those balances that are either in deferment status or are expected to be paid back beyond
the next fiscal year are presented as noncurrent assets on the statement of net position.
(k) Inventories
Inventories consist of bookstore, physical plant, agriculture, printing, central supply, food service supply, and various
hospital inventories. These inventories are generally valued at the lower of cost or market, on the first-in, first-out
(FIFO) basis.
(l) Prepaid Expenses
Prepaid expenses consist of expenditures related to projects, programs, activities or revenues of future fiscal periods.
(m) Restricted Cash and Cash Equivalents and Restricted Short-Term Investments
Cash, cash equivalents and short-term investments that are externally restricted to make debt service payments, to
maintain sinking or reserve funds or to purchase or construct capital or noncurrent assets are classified as noncurrent
assets in the statement of net position.
(n) Endowment Investments
The IHL System’s endowment investments recorded at fair value, are generally subject to the restrictions of donor gift
instruments. They include donor restricted endowments, which are funds received from a donor with the restrictions
that only the income is to be utilized or for which the donor has stipulated that the principal may be expended only after
a stated period or upon the occurrence of a certain event, and funds functioning as endowments, which are funds
established by the governing board to function similar to an endowment fund but may be fully expended at any time at
the discretion of the governing board.
(o) Other Long-Term Investments
Investments are reported at fair value. Changes in unrealized gains (losses) on the carrying value of investments are
reported as a component of investment income in the statement of revenues, expenses, and changes in net position.
Investments in partnerships for which there are no quoted market prices are valued at net asset value, as a practical
expedient in determining fair value.
(p) Investment Valuation
GASB Statement No. 72, Fair Value Measurement and Application, enhances comparability of governmental financial
statements by requiring fair value measurement for certain assets and liabilities using a consistent definition and
accepted valuation techniques. The standard establishes a hierarchy of inputs used to measure fair value that prioritizes
the inputs into three categories – Level 1, Level 2 and Level 3 inputs – considering the relative reliability of the inputs.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy are as follows:
▪ Level 1 inputs are quoted (unadjusted) prices in active markets for identical financial assets or liabilities that the
IHL System has the ability to access at the measurement date;
▪ Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the financial asset
or liability, either directly or indirectly; and
▪ Level 3 inputs are unobservable inputs for the financial asset or liability.
The level in the fair value hierarchy in which a fair value measurement in its entirety falls is based on the lowest level
input that is significant to the fair value measurement in its entirety. The categorization of investments within the
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
33
hierarchy is based upon the pricing transparency of the instrument and should not be perceived as the particular
investment risk.
Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active
markets for those securities. Debt securities classified as Level 2 of the fair value hierarchy are subject to pricing by an
alternative pricing source due to lack of information available by the primary vendor. There are no investments
classified in Level 3.
(q) Capital Assets
Capital assets are recorded at cost at the date of acquisition, or, if donated, at acquisition value at the date of donation.
For movable property, the IHL System’s capitalization policy includes all items with a unit cost of $5,000 or more and
an estimated useful life greater than one year. Renovations to buildings and improvements other than buildings that
significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance
are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the
straight-line method over the estimated useful life of the asset and is not allocated to the functional expenditure
categories. See note 5 for additional details concerning useful lives and salvage values. The IHL System uses the
composite method for library book depreciation if the books are considered to have a useful life of greater than one
year. Expenditures for construction in progress are capitalized as incurred. Interest expense relating to construction is
capitalized net of interest income earned on resources set aside for this purpose, if material.
(r) Impairment of Capital Assets
Management reviews capital assets for impairment whenever events or changes in circumstances indicate that the
service utility of an asset has declined significantly and unexpectedly. Any write-downs due to impairment are charged
to operations at the time impairment is identified. No write-down of capital assets was required for the years ended
June 30, 2021 and 2020.
(s) Deferred Inflows and Outflows of Resources
Deferred inflows of resources are an acquisition of net assets by the IHL System that are applicable to a future reporting
period and include pension and OPEB related deferred inflows, the unamortized amounts for gains on the refunding of
bond debt, and beneficial interests in irrevocable trusts.
Deferred outflows of resources are consumption of net assets by the IHL System that are applicable to a future reporting
period and include pension and OPEB related deferred outflows and the unamortized amounts for losses on the
refunding of bond debt.
(t) Net Pension and OPEB Liabilities
For purposes of measuring the net pension and OPEB liabilities, deferred outflows of resources and deferred inflows
of resources related to pensions and pension expense, and OPEB and OPEB expense, respectively, information about
the fiduciary net position of the IHL System’s proportionate share of the liability for pension and OPEB, and additions
to/deductions from the plans’ fiduciary net positions have been determined on the same basis as they are reported by
the Public Employees’ Retirement System of Mississippi (PERS) and the State and School Employees’ Life and Health
Insurance Plan (OPEB Plan). For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms.
(u) Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consist of amounts owed to vendors and contractors or accrued items such as
interest, wages and salaries.
(v) Compensated Absences/Accrued Leave
Twelve-month employees earn annual personal leave at a rate of 12 hours per month for one month to three years of
service; 14 hours per month for three to eight years of service; 16 hours per month for eight to fifteen years of service;
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
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June 30, 2021 and 2020
34
and 18 hours per month for fifteen years of service and above. There is no requirement that annual leave be taken, and
there is no maximum accumulation. At termination, these employees are paid for up to 240 hours of accumulated leave.
Nine-month employees earn major medical leave at a rate of 13.36 hours per month for one month to three years of
service; 14.24 hours per month for three to eight years of service; 15.12 hours per month for eight to fifteen years of
service; and from 16 hours per month for fifteen years of service and above. There is no limit on the accumulation of
major medical leave. At retirement, these employees are paid for up to 240 hours of accumulated major medical leave.
(w) Unearned Revenues
Unearned revenues include amounts received for tuition, fees and certain auxiliary activities prior to the end of the
fiscal year but related to the subsequent accounting period. Unearned revenues also include amounts received from
grant and contract sponsors that have not yet been earned.
(x) Deposits Refundable
Deposits refundable represent good-faith deposits from students to reserve housing assignments, key deposits, and post-
breakage deposits in the residence halls of the member universities of the IHL System.
(y) Non-current Liabilities
Non-current liabilities include: (1) carrying amounts of revenue bonds payable, notes payable and capital lease
obligations; (2) estimated amounts of proportionate share of net pension and OPEB liabilities; (3) estimated amounts
for accrued compensated absences, deposits refundable, and other liabilities that will not be paid within the next fiscal
year; and (4) other liabilities that, although payable within one year, are to be paid from funds that are classified as
noncurrent assets.
(z) Government Advances Refundable
The IHL System participates in the Federal Perkins Loan and Nursing Loan Programs, which are funded through a
combination of federal and institutional resources. The portion of these programs that has been funded with federal
funds is ultimately refundable to the U.S. government upon the termination of IHL System’s participation in the
programs. Although the federal government has terminated the programs disallowing new loans to be made, institutions
may continue to collect and service existing loans. The IHL System does not have a timeline for discontinuing its
participation in these programs. The portion that would be refundable if the programs were terminated has been
presented as other long-term liabilities and approximated $40.8 million and $47.7 million as of June 30, 2021 and 2020,
respectively.
(aa) Income Taxes
As an integral part of the State of Mississippi, a governmental entity, the IHL System is generally not subject to federal
income tax, however, income generated from activities unrelated to the IHL System’s exempt purpose is subject to
income taxes under Internal Revenue Code Section 511(a)(2)(B).
(bb) Classification of Revenues and Expenses
The IHL System has classified its revenues and expenses as either operating or nonoperating according to the following
criteria:
Operating revenues and expenses have the characteristics of exchange transactions, such as (1) student tuition and fees,
net of scholarship discounts and allowances and bad debt expense; (2) sales and services of auxiliary enterprises, net
of scholarship discounts and allowances; (3) most federal, state and local grants and contracts (non-Title IV financial
aid) and Federal appropriations, if any; (4) interest on institutional student loans and other revenues; and (5) patient
care revenues. Examples of operating expenses include (1) employee compensation, benefits and related expenses; (2)
scholarships and fellowships, net of scholarship discounts and allowances; (3) utilities, commodities (supplies) and
contractual services; (4) professional fees; and (5) depreciation expense related to certain capital assets.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
35
Nonoperating revenues and expenses have the characteristics of nonexchange transactions, such as gifts and
contributions, state appropriations, investment income and other revenue sources that are defined as nonoperating
revenues by GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and
Governmental Entities That Use Proprietary Fund Accounting and GASB Statement No. 34. Examples of nonoperating
expenses include interest on capital asset-related debt and bond expenses.
(cc) Auxiliary Enterprise Activities
Auxiliary enterprises typically exist to furnish goods or services to students, faculty or staff, and charge a fee directly
related to, although not necessarily equal to, the cost of the goods or services. One distinguishing characteristic of
auxiliary enterprises is that they are managed as essentially self-supporting activities. Examples include residence halls,
bookstore, convenience store, laundry, faculty and staff housing, food services and intercollegiate athletic programs
(only if they are essentially self-supporting). The general public may be served incidentally by auxiliary enterprises.
(dd) University Press of Mississippi
The University Press of Mississippi (UPM) is one such auxiliary enterprise. UPM was founded in 1970 and represents
Mississippi's eight public state universities. UPM publishes scholarly work and books that represent Mississippi and
its culture to the nation and the world. From its offices in Jackson, the University Press of Mississippi acquires, edits,
distributes, and promotes more than 85 new books every year. Over the years, the press has published more than 2,000
titles and distributed more than three million copies worldwide, each with the Mississippi imprint. UPM is the only
not-for-profit book publisher in the state and is a blended component unit of the IHL Executive Office.
(ee) Patient Care Revenues, Net
UMMC’s hospital and clinical service revenues are reported at the estimated net realizable amounts from patients,
third-party payors and others for services rendered, including contractual allowances and estimated retroactive
adjustments under reimbursement programs with third-party payors, less an allowance for doubtful accounts.
Retroactive adjustments are accrued in future periods as final settlements are determined.
Inpatient acute care services and substantially all outpatient services rendered to Medicare and Medicaid program
beneficiaries are paid at prospectively determined rates per discharge. These rates vary according to a patient
classification system that is based on clinical, diagnostic, and other factors. UMMC is reimbursed for certain services
at tentative rates with final settlement determined after submission of annual cost reports and audits thereof by the
Medicare and Medicaid intermediaries.
Inpatient and outpatient services rendered to Medicaid program beneficiaries are reimbursed under a cost
reimbursement methodology for certain services and at prospectively determined rates for all other services. UMMC
is reimbursed for cost reimbursable services at tentative rates with final settlement determined after submission of
annual cost reports by UMMC and audits thereof by Medicaid fiscal intermediary.
Revenue from the Medicare and Medicaid programs accounted for approximately 30.9% and 25.5%, respectively, of
UMMC’s net patient service revenues for the year ended June 30, 2021 and approximately 30.0% and 27.7%,
respectively, for the year ended June 30, 2020. Laws and regulations governing the Medicare and Medicaid programs
are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded
estimates will change by a material amount in the near term.
UMMC also entered into payment agreements with certain commercial insurance carriers, health maintenance
organizations, and preferred provider organizations. The basis for payment to UMMC under these agreements includes
prospectively determined rates per discharge, discounts from established charges, and prospectively determined daily
rates.
(ff) Hospital Reimbursement
The University of Mississippi Medical Center – Health System (UMMC – Health System) Medicare cost reports have
been audited and settled by the fiscal intermediary through the cost reports filed for the year ended June 30, 2013 for
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
36
the Jackson Campus, for the year ended June 30, 2019 for Holmes County Hospital, and for the year ended June 30,
2018 for UMMC Grenada.
Over nine years ago, the Division of Medicaid (DOM) notified all providers in the State of Mississippi of a change in
the methodology used to reimburse outpatient services. DOM had adopted a payment methodology for outpatient
services at a fixed cost to charge ratio that was increased each year by an inflationary index. At that time, DOM issued
letters to all providers of an updated reimbursement percentage based on current cost data. DOM also stated its intention
to apply the revised methodology retroactively to October 1, 2005. At June 30, 2021 and 2020, UMMC – Health System
maintains a reserve of approximately $45.4 million for Medicaid rate recalculations, Medicaid DSH audits, and other
adjustments for prior fiscal years.
Effective in fiscal year 2020, DOM went live with an at-risk model for a portion of the hospital access payments under
the Mississippi Hospital Access Payments (MHAP) program. The state’s responsibility under this program is to
transition the MHAP to a quality-based program completely over the coming years. This new at-risk portion of MHAP,
or QIPP (Quality Incentive Payment Program), puts 10% of hospitals’ MHAP payments at risk. The program’s current
goal is to improve quality of care through the reduction of preventable hospital readmissions. Readmissions are
measured quarterly against a pre-determined standard by DOM. UMMC continues to meet the standard requirement.
There are no current reserves for the potential impact of underperformance; however, future performance may
determine a need.
(gg) Scholarship Discounts and Allowances
Financial aid to students is reported in the financial statements under the alternative method as prescribed by the
National Association of College and University Business Officers. Certain aid, such as loans, funds provided to students
as awarded by third parties and Federal Direct Lending, is accounted for as a third-party payment (credited to the
student’s account as if the student made the payment). All other aid is reflected in the financial statements as scholarship
allowances, which reduce operating revenues. The amount reported as operating expenses represents the portion of aid
that was provided to the student in the form of cash.
Scholarship allowances represent the portion of aid provided to the student in the form of reduced tuition. Under the
alternative method, these amounts are computed by allocating the cash payments to students, excluding payments for
services, on the ratio of total aid to the aid not considered to be third party aid.
(hh) Net Position
Net position represents the difference between total assets and deferred outflows of resources and total liabilities and
deferred inflows of resources in the statement of net position and is displayed in three components: net investment in
capital assets; restricted net position (distinguished between major categories of restrictions); and unrestricted net
position.
Net investment in capital assets reflect the IHL System’s total investment in capital assets, net of outstanding debt
obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets,
such debt is excluded from the calculation of net investment in capital assets.
Restricted, nonexpendable net position consists of endowment and similar type funds which donors or other outside
sources have stipulated, as a condition of the gift instrument, the principal to be maintained inviolate and in perpetuity
and invested for the purpose of producing present and future income, which may either be expended or added to
principal.
Restricted, expendable net position includes resources that the IHL System is legally or contractually obligated to spend
in accordance with restrictions imposed by external parties. When both restricted and unrestricted resources are
available for use, it is generally the IHL System’s policy to utilize restricted resources first, and then unrestricted
resources as needed.
Unrestricted net position represents resources derived from student tuition and fees, state appropriations, net patient
service revenue, sales and services of educational activities and auxiliary enterprises. Auxiliary enterprises are
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
37
substantially self-supporting activities that provide services for students, faculty, and staff. While unrestricted net
position may be designated for specific purposes by action of management or the Board, they are available for use at
the discretion of the governing board to meet current expenses for any purpose.
(ii) Reclassifications
Certain reclassifications have been made to the prior year financial statements to conform to the current year
presentation. These reclassifications had no impact on net position or changes in net position. This reclassification
resulted in an increase to prior year deferred outflows of resources and offsetting increase to deferred inflows of
resources.
Note 2
Cash and Investments
Cash, Cash Equivalents and Short-Term Investments
Investment policies, as set forth by the IHL System’s Board of Trustees’ policy and state statute, authorize the
universities to invest in demand deposits and interest-bearing time deposits such as savings accounts, certificates of
deposit, money market funds, U.S. Treasury bills and notes, U.S. Government agency and sponsored enterprise
obligations and repurchase agreements. Investment policy at the IHL System is governed by State statute (Section 27-
105-33, MS Code Ann. 1972) and the Uniform Prudent Management of Institutional Funds Act (UPMIFA) of 1998.
Custodial Credit Risk – Deposits
Custodial credit risk is defined as the risk that, in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of the investment or collateral securities that are in the possession of
an outside party. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered with
securities held by the counterparty’s trust department or agent, but not held in the government’s name. The IHL System
had no investments exposed to custodial credit risk at June 30, 2021 and 2020.
The collateral for public entities’ deposits in financial institutions is held in the name of the State Treasurer under a
program established by the Mississippi State Legislature and is governed by Section 27-105-5 of the MS Code
Annotated (1972). Under this program, funds are protected through a collateral pool administered by the State
Treasurer. Financial institutions holding deposits of public funds must pledge securities as collateral against these
deposits. In the event of the failure of a financial institution, securities pledged by that institution would be liquidated
by the State Treasurer to replace the public deposits not covered by the Federal Deposit Insurance Corporation.
Investment policies as set forth by Board policy as authorized by Section 37-101-15, Mississippi Code Annotated
(1972), authorize the universities to invest in equity securities, bonds and other securities. Investments are reported at
fair value.
A summary of cash and investments as of June 30, 2021 and 2020 is as follows:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
38
2021 2020
Cash $ 961,478,728 881,111,528
Restricted cash and cash equivalents 140,763,573 108,664,579
U.S. Treasury securities 373,319,857 306,870,572
U.S. government agency securities 492,385,796 299,813,898
Commercial mortgage backed securities 2,456,899 1,610,135
Collateralized mortgage obligations 26,924,609 36,513,966
Asset backed securities 2,749,325 3,331,509
Corporate bonds and notes 8,256,546 2,042,932
Municipal bonds 17,249,901 19,730,475
Fixed income mutual funds 9,252,259 18,452,877
Other fixed income securities 2,055,805 307,157
Certificates of deposit 18,397,606 25,236,861
Money market funds 8,101,571 5,002,240
Domestic equity securities 8,024,100 6,385,295
Global equity securities 13,970,116 1,922,319
Domestic equity mutual funds 42,537,899 32,944,113
International equity mutual funds 6,750,542 3,024,464
Equity long/short hedge funds 111,633,286 92,518,849
Private capital 69,012,848 45,388,063
Endowment Pool Balanced 4,195,994 3,251,178
Mississippi State Foundation Investment Pool 49,749,774 37,113,610
Miscellaneous 37,773,185 42,852,531
Total cash and investments $ 2,407,040,219 1,974,089,151
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
39
The following tables present the financial assets carried at fair value by level within the valuation hierarchy, as well as
the assets measured at the net asset value (NAV) per share as a practical expedient as of June 30, 2021 and 2020:
Level 1 Level 2 Level 3 Total
Investment strategy:
Fixed income:
U.S. Treasury securities $ 365,053,613 8,266,244 — 373,319,857
Fixed income mutual funds 9,252,259 — — 9,252,259
U.S. government securities 2,809,811 489,575,985 — 492,385,796
Mortgage obligations and asset backed securities — 32,130,833 — 32,130,833
Corporate bonds and notes 6,315,033 1,941,513 — 8,256,546
Certificates of deposit — 18,397,606 — 18,397,606
Municipal bonds 1,665,405 15,584,496 — 17,249,901
Other fixed income securities 1,797,915 257,890 — 2,055,805
Money market funds 7,288,022 813,549 — 8,101,571
Total fixed income investments $ 394,182,058 566,968,116 — 961,150,174
Equity securities:
Domestic equity securities 6,540,588 1,483,512 — 8,024,100
Domestic equity mutual funds 41,320,986 1,216,913 — 42,537,899
Global equity securities 13,401,079 569,037 — 13,970,116
International equity mutual funds 6,750,542 — — 6,750,542
Total equity securities $ 68,013,195 3,269,462 — 71,282,657
Investments measured at NAV as a practical expedient:
Equity long/short hedge funds $ 111,633,286
Private capital 69,012,848
Mississippi State Foundation Investment Pool 49,749,774
Endowed Pool II Balanced 4,195,994
Other miscellanous investments 37,773,185
Total investments measured at NAV 272,365,087
Total investments measured at fair value $ 1,304,797,918
2021
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
40
Level 1 Level 2 Level 3 Total
Investment strategy:
Fixed income:
U.S. Treasury securities $ 297,765,424 9,105,148 — 306,870,572
Fixed income mutual funds 18,452,877 — — 18,452,877
U.S. government securities — 299,813,898 — 299,813,898
Mortgage obligations and asset backed securities — 41,455,610 — 41,455,610
Corporate bonds and notes — 2,042,932 — 2,042,932
Certificates of deposit — 25,236,861 — 25,236,861
Municipal bonds — 19,730,475 — 19,730,475
Other fixed income securities — 307,157 — 307,157
Money market funds 3,772,131 1,230,109 — 5,002,240
Total fixed income investments $ 319,990,432 398,922,190 — 718,912,622
Equity securities:
Domestic equity securities 5,265,995 1,119,300 — 6,385,295
Domestic equity mutual funds 31,724,959 1,219,154 — 32,944,113
Global equity securities 1,922,319 — — 1,922,319
International equity mutual funds 3,024,464 — — 3,024,464
Total equity securities $ 41,937,737 2,338,454 — 44,276,191
Investments measured at NAV as a practical expedient:
Equity long/short hedge funds $ 92,518,849
Private capital 45,388,063
Mississippi State Foundation Investment Pool 37,113,610
Endowed Pool II Balanced 3,251,178
Other miscellanous investments 42,852,531
Total investments measured at NAV 221,124,231
Total investments measured at fair value $ 984,313,044
2020
The valuation method for investments measured at NAV per share as a practical expedient is presented in the following
tables:
Fair Value
Unfunded
Commitments
Redemption
frequency
(if eligible)
Redemption
notice period
Equity long/short hedge funds (1) $ 111,633,286 1,828,279 Quarterly 45-120 Days
Private capital (2) 69,012,848 18,444,595 Various Various
Mississippi State Foundation Investment Pool 49,749,774 — Daily 1-3 Days
Endowed Pool II Balanced 4,195,994 — Daily 1-3 Days
Other miscellanous investments (3) 37,773,185 166,600 Various Various
Total investments measured at NAV $ 272,365,087
2021
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
41
Fair Value
Unfunded
Commitments
Redemption
frequency
(if eligible)
Redemption
notice period
Equity long/short hedge funds (1) $ 92,518,849 — Quarterly 45-120 Days
Private capital (2) 45,388,063 17,586,958 Various Various
Mississippi State Foundation Investment Pool 37,113,610 — Daily 1-3 Days
University of Mississippi Foundation Investment Pool 3,251,178 — Daily 1-3 Days
Other miscellanous investments (3) 42,852,531 166,600 Various Various
Total investments measured at NAV $ 221,124,231
2020
(1) Equity long/short hedge and venture capital funds specialize primarily in classic long/short hedge equity
strategies. These funds invest globally, with a majority of the exposure in liquid, developed markets and
invest primarily in private investment partnerships, venture capital opportunities or limited liability
companies and in separately-managed accounts, each of which is managed by independent managers.
(2) Private capital investments help build new startup equities that are considered to have high-growth and high-
risk potential, mainly in the technology and healthcare sectors.
(3) Other miscellaneous investments consist of various other tangible items such as land, timberland and various
real estate, etc.
The equity in the long/short hedge funds, private capital, Mississippi State University Foundation Investment Pool, and
other miscellaneous investments represents the IHL System’s participations in those investments, which is measured
at NAV per share.
Custodial Credit Risk
Custodial credit risk is defined as the risk that, in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of the investment or collateral securities that are in possession of an
outside party. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered with
securities held by the counterparty’s trust department or agent but not held in the government’s name. The IHL System
had no investments exposed to custodial credit risk at June 30, 2021 and 2020.
Interest Rate Risk
Interest rate risk is defined as the risk a government may face should interest rate variances adversely affect the fair
value of investments. The IHL System does not presently have a formal investment policy that addresses interest rate
risk.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
42
As of June 30, 2021 and 2020, the IHL System had the following investments subject to interest rate risk:
Fair
value
Less
than 1
1 - 5 6 - 10
More
than 10
U.S. Treasury securities $ 373,319,857 169,622,821 189,166,796 12,658,823 1,871,417
U.S. government agency obligations 492,385,796 91,125,549 192,685,217 183,349,656 25,225,374
Commercial mortgage backed securities 2,456,899 — 867,062 — 1,589,837
Collateralized mortgage obligations 26,924,609 — 2,265,429 2,409,181 22,249,999
Asset backed securities 2,749,325 — 2,034 — 2,747,291
Corporate bonds and notes 8,256,546 615,782 1,858,540 2,253,461 3,528,763
Certificates of deposit 18,397,606 11,180,763 6,643,858 572,985 —
Municipal bonds 17,249,901 5,717,260 7,370,464 2,496,772 1,665,405
Other fixed income securities 2,055,805 — — — 2,055,805
Fixed income mutual funds 9,252,259 2,000,048 2,055,033 5,189,271 7,907
Total $ 953,048,603 280,262,223 402,914,433 208,930,149 60,941,798
2021
Years to maturity
Fair
value
Less
than 1
1 - 5 6 - 10
More
than 10
U.S. Treasury securities $ 306,870,572 136,364,427 162,673,193 6,253,418 1,579,534
U.S. government agency obligations 299,813,898 92,504,513 120,123,969 65,537,403 21,648,013
Commercial mortgage backed securities 1,610,135 999,670 1,418 — 609,047
Collateralized mortgage obligations 36,513,966 — 432,649 2,995,587 33,085,730
Asset backed securities 3,331,509 — 44,923 310,577 2,976,009
Corporate bonds and notes 2,042,932 411,046 797,006 623,566 211,314
Certificates of deposit 25,236,861 13,057,363 11,578,708 600,790 —
Municipal bonds 19,730,475 4,869,166 10,046,603 4,814,706 —
Other fixed income securities 307,157 — — — 307,157
Fixed income mutual funds 18,452,877 633,063 3,068,906 6,907,133 7,843,775
Total $ 713,910,382 248,839,248 308,767,375 88,043,180 68,260,579
2020
Years to maturity
Credit Risk
Credit risk is the risk that an insurer or other counterparty to an investment will not fulfill its obligations. The IHL
System does not presently have a formal investment policy that addresses credit risk.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
43
As of June 30, 2021 and 2020, the IHL System had the following investments recorded at fair value subject to credit
risk:
2021 2020
Credit rating:
AAA $ 24,776,023 34,013,853
Aaa 146,665,878 69,381,980
Aa2 9,774,274 16,404,564
Aa3 589,197 598,092
AA 4,768,383 2,985,444
A1 10,296 8,722
A2 126,727 119,581
A3 85,439 74,334
A 3,872,089 820,728
AA+ 290,795,104 122,293,335
BAA 128,832 101,041
B 614,933 —
BB 1,019,823 —
BBB 4,664,445 4,564,079
CCC 173,011 —
Not rated, or rating unavailable 73,266,686 130,437,196
Total investments subject to credit risk $ 561,331,140 381,802,949
Cash and Investments excluded from credit risk disclosure:
Cash $ 961,478,728 881,111,528
Restricted cash and cash equivalents 140,763,573 108,664,579
U.S. Treasury securities 373,319,857 306,870,572
Certificates of deposit 18,397,606 25,236,861
Money market funds 8,101,571 5,002,240
Equity securities 71,282,657 44,276,191
Investments measured at NAV 272,365,087 221,124,231
Total investments excluded from credit risk disclosure 1,845,709,079 1,592,286,202
Total cash and investments $ 2,407,040,219 1,974,089,151
The credit risk ratings listed above are issued upon standards set by Standard and Poor’s or Moody’s Ratings Services.
Concentration of Credit Risk
Concentration of credit risk is defined by GASB Statement No. 40, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions, as the risk of loss attributed to the magnitude of a government’s
investment in a single issuer. The IHL System does not presently have a formal policy that addresses concentration of
credit risk.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
44
As of June 30, 2021 and 2020, the IHL System had the following issuers holding investments recorded at fair value
that exceeded 5% of total investments:
Issuer Fair value Percentage
U.S. Treasury securities $ 284,421,451 22.25%
Federal Home Loan Bank notes 178,432,739 13.96%
Federal Farm Credit Bank notes 144,538,888 11.31%
Issuer Fair value Percentage
U.S. Treasury securities $ 286,755,571 30.20%
Federal Farm Credit Bank notes 104,031,412 10.96%
Federal National Mortgage Association 56,681,742 5.97%
Federal Home Loan Bank notes 52,834,014 5.56%
2020
2021
Foreign Currency Risk
Foreign currency risk is defined as the risk that changes in exchange rates will adversely affect the fair value of an
investment. The IHL System does not presently have a formal policy that addresses foreign currency risk. The IHL
System’s exposure to foreign currency risk is limited to investments in global or pooled non-U.S. equity mutual funds,
which approximated $45.6 million and $25.7 million at June 30, 2021 and 2020, respectively.
Note 3
Accounts Receivable, net
Accounts receivable consisted of the following at June 30, 2021 and 2020:
June 30,
2021
Current
Portion
Non-current
Portion
Student tuition $ 123,448,342 123,448,342 —
Auxiliary enterprises and other operating activities 38,999,209 38,999,209 —
Contributions and gifts 3,444,923 3,444,923 —
Federal, state, and private grants and contracts 133,915,346 133,915,346 —
State Appropriations 9,439,199 9,439,199 —
Accrued Interest 3,496,719 3,496,719 —
Patient Income 772,938,044 772,938,044 —
Other 36,518,937 21,097,572 15,421,365
Total accounts receivable 1,122,200,719 1,106,779,354 15,421,365
Less bad debt provision (731,779,630) (731,779,630) —
Less elimination entry (17,166,658) (3,851,137) (13,315,521)
Net accounts receivable $ 373,254,431 371,148,587 2,105,844
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
45
June 30,
2020
Current
Portion
Non-current
Portion
Student tuition $ 114,017,920 114,017,920 —
Auxiliary enterprises and other operating activities 39,174,129 39,174,129 —
Contributions and gifts 5,630,319 5,630,319 —
Federal, state, and private grants and contracts 129,776,064 129,776,064 —
State Appropriations 12,929,770 12,929,770 —
Accrued Interest 3,325,199 3,325,199 —
Patient Income 791,301,041 791,301,041 —
Other 35,443,220 25,521,790 9,921,430
Total accounts receivable 1,131,597,662 1,121,676,232 9,921,430
Less bad debt provision (708,279,380) (708,279,380) —
Less elimination entry (9,064,024) (2,280,355) (6,783,669)
Net accounts receivable $ 414,254,258 411,116,497 3,137,761
Note 4
Notes Receivable from Students
Notes receivable from students are payable in installments over a period of up to ten years, commencing three to twelve
months from the date of separation from one of the IHL System’s institutions.
The following is a schedule of interest rates and unpaid balances for the different types of notes receivable held by the
IHL System as of June 30, 2021 and 2020:
Interest
Rates
June 30,
2021
Current
Portion
Non-current
Portion
Perkins student loans 3% to 9% $ 39,089,174 10,371,061 28,718,113
Institutional loans 0% to 9% 63,945,112 10,732,813 53,212,299
Nursing student loans 3% to 9% 4,266,787 712,181 3,554,606
Dental student loans 3% to 9% 288,420 148,796 139,624
Medical student loans 3% to 9% 335,512 36,069 299,443
Other federal loans 3% to 9% 2,389,713 1,950,646 439,067
Total notes receivable 110,314,718 23,951,566 86,363,152
Less allowance for doubtful accounts (21,297,607) (3,131,030) (18,166,577)
Net notes receivable $ 89,017,111 20,820,536 68,196,575
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
46
Interest
Rates
June 30,
2020
Current
Portion
Non-current
Portion
Perkins student loans 3% to 9% $ 48,188,521 9,140,316 39,048,205
Institutional loans 0% to 9% 62,733,960 10,131,922 52,602,038
Nursing student loans 3% to 9% 4,227,714 468,878 3,758,836
Dental student loans 3% to 9% 335,825 110,466 225,359
Medical student loans 3% to 9% 173,760 34,909 138,851
Other federal loans 3% to 9% 2,387,183 1,956,282 430,901
Total notes receivable 118,046,963 21,842,773 96,204,190
Less allowance for doubtful accounts (21,605,297) (4,211,428) (17,393,869)
Net notes receivable $ 96,441,666 17,631,345 78,810,321
Note 5
Capital Assets
A summary of changes in capital assets for the years ended June 30, 2021 and 2020 is presented as follows:
Balance
June 30,
2020
Additions
Deletions/
transfers
Balance
June 30,
2021
Nondepreciable Capital Assets:
Land $ 116,090,894 3,496,057 3,282,364 116,304,587
Construction in progress 442,849,769 119,043,612 269,411,344 292,482,037
Livestock 1,519,321 67,939 455,419 1,131,841
Total nondepreciable
capital assets 560,459,984 122,607,608 273,149,127 409,918,465
Depreciable capital assets:
Buildings 4,509,120,737 255,753,292 9,449,609 4,755,424,420
Improvements other than buildings 513,252,342 10,627,172 — 523,879,514
Equipment 929,028,179 61,621,645 21,573,322 969,076,502
Library books 451,722,303 11,133,763 652,822 462,203,244
Total depreciable assets 6,403,123,561 339,135,872 31,675,753 6,710,583,680
Total capital assets 6,963,583,545 461,743,480 304,824,880 7,120,502,145
Less accumulated depreciation for:
Buildings 1,203,848,668 86,539,124 524,601 1,289,863,191
Improvements other than buildings 211,618,468 15,703,928 170,249 227,152,147
Equipment 699,614,809 55,923,101 18,487,652 737,050,258
Library books 394,025,682 12,860,448 649,007 406,237,123
Total accumulated
depreciation 2,509,107,627 171,026,601 19,831,509 2,660,302,719
Net capital assets $ 4,454,475,918 290,716,879 284,993,371 4,460,199,426
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
47
Balance
June 30,
2019
Additions
Deletions/
transfers
Balance
June 30,
2020
Nondepreciable Capital Assets:
Land $ 113,822,755 2,269,582 1,443 116,090,894
Construction in progress 477,155,445 197,333,316 231,638,992 442,849,769
Livestock 1,790,654 91,962 363,295 1,519,321
Total nondepreciable
capital assets 592,768,854 199,694,860 232,003,730 560,459,984
Depreciable capital assets:
Buildings 4,300,061,832 209,345,405 286,500 4,509,120,737
Improvements other than buildings 477,794,135 35,691,095 232,888 513,252,342
Equipment 912,376,796 47,506,505 30,855,122 929,028,179
Library books 440,789,349 11,350,864 417,910 451,722,303
Total depreciable assets 6,131,022,112 303,893,869 31,792,420 6,403,123,561
Total capital assets 6,723,790,966 503,588,729 263,796,150 6,963,583,545
Less accumulated depreciation for:
Buildings 1,134,262,142 71,650,590 2,064,064 1,203,848,668
Improvements other than buildings 183,826,715 27,791,753 — 211,618,468
Equipment 675,141,379 56,629,658 32,156,228 699,614,809
Library books 381,648,149 12,878,850 501,317 394,025,682
Total accumulated
depreciation 2,374,878,385 168,950,851 34,721,609 2,509,107,627
Net capital assets $ 4,348,912,581 334,637,878 229,074,541 4,454,475,918
As of June 30, 2021 and 2020, capital assets included assets under capital leases with an original cost basis of
approximately $8.9 million and $2.7 million, respectively, with accumulated amortization of approximately $1.7
million and $1.5 million, respectively.
Depreciation is computed on a straight-line basis except for library books, which is computed using a composite
method. The following useful lives, salvage values and capitalization thresholds are used to compute depreciation:
Capital assets
Estimated
useful life
Buildings 40 Years 0 – 20 % $ 50,000
Improvements other than buildings 20 Years 0 – 20 25,000
Equipment 3-15 Years 0 – 10 5,000
Library books 10 Years — —
Salvage
value
Capitalization
threshold
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
48
Note 6
Deferred Outflows of Resources and Deferred Inflows of Resources
The classifications of deferred outflows of resources and deferred inflows of resources at June 30, 2021 and 2020 are
as follows:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension related (see note 15) $ 393,866,820 $ 26,357,950
OPEB related (see note 16) 32,723,147 33,474,844
Unamortized loss/gain on refunding of debt 50,081,926 4,253,700
Beneficial interest in irrevocable trusts — 43,991,738
Totals $ 476,671,893 $ 108,078,232
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension related (see note 15) $ 267,207,136 $ 59,183,314
OPEB related (see note 16) 21,671,517 12,050,907
Unamortized loss/gain on refunding of debt 44,204,113 4,638,458
Beneficial interest in irrevocable trusts — 35,933,062
Totals $ 333,082,766 $ 111,805,741
2021
2020
Note 7
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities as of June 30, 2021 and 2020 are as follows:
2021 2020
Payable to vendors and contractors $ 167,320,760 146,253,624
Accrued salaries, wages and employee withholdings 139,467,159 102,202,758
Accrued interest 6,667,049 6,884,501
Other 6,234,734 5,425,687
Subtotal 319,689,702 260,766,570
Less elimination entry (307,758) (727,117)
Total accounts payable and accrued liabilities $ 319,381,944 260,039,453
All amounts are considered current and expected to be settled within one year.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
49
Note 8
Unearned Revenues
Unearned revenues as of June 30, 2021 and 2020 are as follows:
2021 2020
Unearned summer school revenue $ 30,201,840 28,455,679
Unearned grants and contract revenue 105,368,071 84,274,331
Other principally athletic activities 28,379,493 26,471,692
Total unearned revenues $ 163,949,404 139,201,702
All amounts are considered current and will be fully recognized within one year.
Note 9
Material Blended Component Units of the IHL System
In accordance with GASB Statement No. 61, the educational building corporations are deemed to be material
component units of the IHL System but are presented on a blended basis in the accompanying financial statements due
to the significance of their activities to respective member universities’ operations. These blended component units
provide services entirely, or almost entirely, to their respective universities. Condensed financial information as of June
30, 2021 and 2020 is listed in the following schedules.
ASU DSU JSU MSU MVSU UM USM UMMC
Current assets $ — — — — — 17,486,909 7,025,030 10,298,525
Noncurrent assets 37,755,079 12,145,000 84,969,455 297,235,000 16,015,000 220,101,219 148,106,968 337,485,405
Total assets 37,755,079 12,145,000 84,969,455 297,235,000 16,015,000 237,588,128 155,131,998 347,783,930
Deferred outflows of resources — — 8,506,811 — — — — 13,474,446
Current liabilities 2,535,563 610,000 4,811,577 11,965,000 675,000 17,319,998 7,025,030 9,841,722
Noncurrent liabilities 44,432,110 11,535,000 88,664,689 285,270,000 15,340,000 216,014,430 148,106,968 340,542,651
Total liabilities 46,967,673 12,145,000 93,476,266 297,235,000 16,015,000 233,334,428 155,131,998 350,384,373
Deferred inflows of resources — — — — — 4,253,700 — —
Total net position $ (9,212,594) — — — — — — 10,874,003
Operating revenues $ 2,870,750 1,081,900 — — 1,235,266 — — 10,559,954
Operating expenses (2,862,613) (1,081,900) — — (1,235,266) — — (9,443,985)
Total operating income
8,137 — — — — — — 1,115,969
Nonoperating revenues — — 4,111,706 13,258,658 — 7,068,966 12,761,256 —
Nonoperating expenses — — (4,111,706) (13,258,658) — (7,068,966) (12,761,256) —
Total nonoperating
revenue (expenses) — — — — — — — —
Changes in net position
$ 8,137 — — — — — — 1,115,969
2021 Condensed Financial Information for Educational Building Corporations
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
50
ASU DSU JSU MSU MVSU UM USM UMMC
Current assets $ 2,850 — — — — 19,717,835 7,016,012 8,196,619
Noncurrent assets 39,083,556 12,740,000 89,062,661 308,695,000 16,690,000 234,833,037 155,131,997 326,512,166
Total assets 39,086,406 12,740,000 89,062,661 308,695,000 16,690,000 254,550,872 162,148,009 334,708,785
Deferred outflows of resources — — 9,160,099 — — — — 5,131,766
Current liabilities 2,452,513 595,000 4,746,494 11,460,000 675,000 19,333,546 7,016,012 7,993,553
Noncurrent liabilities 45,854,624 12,145,000 93,476,266 297,235,000 16,015,000 230,578,868 155,131,997 322,088,964
Total liabilities 48,307,137 12,740,000 98,222,760 308,695,000 16,690,000 249,912,414 162,148,009 330,082,517
Deferred inflows of resources — — — — — 4,638,458 — —
Total net position $ (9,220,731) — — — — — — 9,758,034
Operating revenues $ 2,696,647 — — — 1,196,306 — — 14,496,788
Operating expenses (2,920,612) — — — (1,196,306) — — (8,823,925)
Total operating
income (loss) (223,965) — — — — — — 5,672,863
Nonoperating revenues — 1,079,900 5,287,186 13,699,040 — 9,500,908 10,412,673 —
Nonoperating expenses — (1,079,900) (5,287,186) (13,699,040) — (9,500,908) (10,412,673) —
Total nonoperating
revenue (expenses) — — — — — — — —
Changes in net position
$ (223,965) — — — — — — 5,672,863
2020 Condensed Financial Information for Educational Building Corporations
Note 10
Long-Term Liabilities
Long-term liabilities of the IHL System consist of notes and bonds payable, capital lease obligations, and certain other
liabilities that are expected to be liquidated at least one year from June 30, 2021 and 2020.
The various leases cover a period not to exceed five years. The IHL System has the option to prepay all outstanding
obligations less any unearned interest to fully satisfy the obligation. There is also a fiscal funding addendum stating
that if funds are not appropriated for periodic payment for any future fiscal period, the lessee will not be obligated to
pay the remainder of the total payments due beyond the end of the current fiscal period. Other long-term liabilities and
notes payable consist of accrued leave liabilities, deposits refundable, notes payable, net pension liability, net OPEB
liability, and other liabilities (government advance refundables, self-insured workers’ compensation, unemployment
and tort claims).
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
51
Information regarding original issue amounts, interest rates, and maturity dates for bonds, notes, and capital leases relative to the long-term liabilities for each of the universities
within the IHL System as of June 30, 2021 and 2020 is listed in the following schedules.
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Alcorn State University:
Bonded Debt
EBC - Series 2016
$
43,630,000 2.00% - 5.00% 2040
$
43,375,000 — 1,130,000 42,245,000 1,230,000
Unamortized Premium 3,609,624 — 192,512 3,417,112 192,512
Total Bonded Debt 46,984,624 — 1,322,512 45,662,112 1,422,512
Other Long-term Liabilities:
Accrued leave liabilities 3,302,113 132,816 3,169,297 650,251
Net pension liability 75,787,222 5,121,847 — 80,909,069 —
Net OPEB liability 4,718,847 — 433,716 4,285,131 —
Deposits refundable 678,436 — 303 678,133 —
Total Other liabilities 84,486,618 5,121,847 566,835 89,041,630 650,251
Total
$
131,471,242 5,121,847 1,889,347 134,703,742 2,072,763
Due within one year (2,072,763)
Total noncurrent liabilities
$
132,630,979
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
52
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Delta State University:
Bonded Debt
EBC - Series 2016
$
15,105,000 2.00% - 5.00% 2039
$
12,740,000 — 595,000 12,145,000 610,000
Total Bonded Debt 12,740,000 — 595,000 12,145,000 610,000
Other Long-term Liabilities:
Accrued leave liabilities 1,239,401 354,304 — 1,593,705 398,425
Deposits refundable 101,344 1,490 — 102,834 —
Net pension liability 48,336,405 2,769,880 — 51,106,285 —
Net OPEB liability 3,556,677 — 375,239 3,181,438 —
Federal Loan Fund Repayment Contingency 344,324 — 344,324 — —
Total Other liabilities 53,578,151 3,125,674 719,563 55,984,262 398,425
Total
$
66,318,151 3,125,674 1,314,563 68,129,262 1,008,425
Due within one year (1,008,425)
Total noncurrent liabilities
$
67,120,837
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
53
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Jackson State University:
Bonded Debt
EBC - Series 1982 4,000,000$ 1.00% - 3.00% 2021
$
175,000 — 175,000 — —
EBC - Series 2015A 57,595,000 2.00% - 5.00% 2045 54,130,000 — 2,505,000 51,625,000 3,510,000
EBC - Series 2015B 13,065,000 0.069% - 2.60% 2021 750,000 — 750,000 — —
EBC - Series 2017 6,000,000 3.38% 2028 6,000,000 — — 6,000,000 —
EBC - Series 2017A 29,745,000 1.60% - 3.70% 2034 28,960,000 — 785,000 28,175,000 875,000
Unamortized premium 7,532,415 — 305,376 7,227,039 305,376
Total Bonded Debt 97,547,415 — 4,520,376 93,027,039 4,690,376
Capital Leases - Buses 1,127,000 4.56% 565,085 — 115,858 449,227 121,201
Total Capital Leases 565,085 — 115,858 449,227 121,201
Other Long-term Liabilities:
Accrued leave liabilities 6,259,804 — 716,982 5,542,822 399,083
Net pension liability 126,401,212 5,556,330 — 131,957,542 —
Net OPEB liability 7,374,236 — 989,168 6,385,068 —
Deposits refundable 846,567 1,110,100 1,252,852 703,815 —
Federal Loan Fund Repayment Contingency 1,912,787 — — 1,912,787 —
Notes Payable 110,260 — 110,260 — —
Total Other liabilities 142,904,866 6,666,430 3,069,262 146,502,034 399,083
Total
$
241,017,366 6,666,430 7,705,496 239,978,300 5,210,660
Due within one year (5,210,660)
Total noncurrent liabilities
$
234,767,640
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
54
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi State University:
Bonded Debt
Dormitory Revenue System 2,250,000$ 3.00% 2022
$
100,000 — 100,000 — —
Student Apartments 2,038,000 3.00% 2023 175,000 — 85,000 90,000 90,000
EBC - Series 2011 54,370,000 2.00% - 5.00% 2043 2,600,000 — 1,270,000 1,330,000 1,330,000
EBC - Series 2013 60,470,000 2.00% - 5.00% 2044 9,545,000 — 585,000 8,960,000 605,000
EBC - Series 2014A 89,810,000 2.00% - 5.00% 2044 72,930,000 — 3,790,000 69,140,000 3,990,000
EBC - Series 2014B 23,435,000 0.29% - 4.813% 2044 18,275,000 — 975,000 17,300,000 1,005,000
EBC - Series 2015 56,010,000 2.00% - 5.00% 2046 51,855,000 — 1,130,000 50,725,000 1,185,000
EBC - Series 2017 63,270,000 2.00% - 5.00% 2046 61,825,000 — 3,500,000 58,325,000 3,635,000
EBC - Series 2017A 92,075,000 2.00% - 5.00% 2044 91,665,000 — 210,000 91,455,000 215,000
Unamortized premium 17,790,248 — 2,533,567 15,256,681 2,293,457
Total Bonded Debt 326,760,248 — 14,178,567 312,581,681 14,348,457
Other Long-term Liabilities:
Accrued leave liabilities 26,134,828 — 386,963 25,747,865 2,871,568
Net pension liability 558,213,479 65,437,502 — 623,650,981 —
Net OPEB liability 33,054,895 — 2,045,797 31,009,098 —
Deposits refundable 43,053 2,295 — 45,348 —
Federal Loan Fund Repayment Contingency 9,126,822 — 2,490,066 6,636,756 —
Total Other liabilities 626,573,077 65,439,797 4,922,826 687,090,048 2,871,568
Total
$
953,333,325 65,439,797 19,101,393 999,671,729 17,220,025
Due within one year (17,220,025)
Total noncurrent liabilities
$
982,451,704
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
55
Year ended June 30, 2021
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi University for Women:
Other Long-term Liabilities:
Accrued leave liabilities
$
1,128,795 — 53,509 1,075,286 43,011
Net pension liability 39,373,621 4,623,026 — 43,996,647 —
Net OPEB liability 2,567,364 — 146,247 2,421,117 —
Federal Loan Fund Repayment Contingency 594,099 — 337,404 256,695 —
Total Other liabilities
$
43,663,879 4,623,026 537,160 47,749,745 43,011
Due within one year (43,011)
Total noncurrent liabilities
$
47,706,734
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
56
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi Valley State University:
Bonded Debt
EBC - Series 2007 19,015,000$ 4.00% 2022
$
355,000 — 190,000 165,000 165,000
EBC - Series 2015 17,270,000 2.00% 2037 16,335,000 — 485,000 15,850,000 560,000
Total Bonded Debt 16,690,000 — 675,000 16,015,000 725,000
Capital Leases 84,982 — 84,982 — —
Total Capital Leases 84,982 — 84,982 — —
Other Long-term Liabilities:
Accrued leave liabilities 1,650,755 — 102,041 1,548,714 191,908
Net pension liability 44,196,596 3,504,185 — 47,700,781 —
Net OPEB liability 3,314,930 — 397,443 2,917,487 —
Deposits refundable 36,262 — 6,152 30,110 —
Total Other liabilities 49,198,543 3,504,185 505,636 52,197,092 191,908
Total
$
65,973,525 3,504,185 1,265,618 68,212,092 916,908
Due within one year (916,908)
Total noncurrent liabilities
$
67,295,184
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
57
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Mississippi:
Bonded Debt
EBC - Series 2009B
$
24,165,000 3.623% - 5.00% 2021
$
2,600,000 — 2,600,000 — —
EBC - Series 2011 27,995,000 3.00% - 4.00% 2032 2,460,000 — 1,165,000 1,295,000 1,295,000
EBC - Series 2013D 12,100,000 3.10% 2021 1,331,297 — 1,331,297 — —
EBC - Series 2015A 15,660,000 2.00% - 4.00% 2040 14,745,000 — 265,000 14,480,000 295,000
EBC - Series 2015B 10,125,000 1.375% - 3.75% 2030 7,180,000 — 625,000 6,555,000 640,000
EBC - Series 2015C 31,630,000 2.00% - 5.00% 2046 29,160,000 — 655,000 28,505,000 675,000
EBC - Series 2015D 17,660,000 0.993% - 4.452% 2036 14,875,000 — 725,000 14,150,000 740,000
EBC - Series 2016A 33,245,000 2.00% - 5.00% 2034 26,990,000 — 1,970,000 25,020,000 2,030,000
EBC - Series 2017 38,995,000 2.00% - 5.00% 2035 38,400,000 — 1,510,000 36,890,000 1,555,000
EBC - Series 2019A 73,350,000 3.00% - 5.00% 2036 73,350,000 — 1,425,000 71,925,000 3,150,000
EBC - Series 2019B 3,365,000 1.94% - 2.05% 2024 3,365,000 — 885,000 2,480,000 905,000
Unamortized Premium 20,128,217 — 1,617,136 18,511,081 1,552,878
Total Bonded Debt 234,584,514 — 14,773,433 219,811,081 12,837,878
Other Long-term Liabilities:
Accrued leave liabilities 17,350,235 667,844 — 18,018,079 2,148,000
Net pension liability 339,244,839 31,145,314 — 370,390,153 —
Net OPEB liability 22,349,145 — 1,542,491 20,806,654 —
Deposits refundable 126,116 — 2,000 124,116 —
Note Payable from direct borrowings - Hancock Bank 5,994,136 — 935,538 5,058,598 960,057
Note Payable from direct borrowings - Renasant Bank 6,454,716 — 745,487 5,709,229 766,543
Federal Loan Fund Repayment Contingency 8,647,900 — 857,200 7,790,700 —
Total Other liabilities 400,167,087 31,813,158 4,082,716 427,897,529 3,874,600
Total
$
634,751,601 31,813,158 18,856,149 647,708,610 16,712,478
Due within one year (16,712,478)
Total noncurrent liabilities
$
630,996,132
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
58
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Southern Mississippi:
Bonded Debt
SMEBC - Series 2013
$
51,875,000 2.00% - 5.00% 2044
$
7,735,000 — 470,000 7,265,000 560,000
SMEBC - Series 2015A 38,600,000 2.00% - 5.00% 2034 33,995,000 — 1,495,000 32,500,000 1,630,000
SMEBC - Series 2015B 16,690,000 0.50% - 3.25% 2034 7,475,000 — 2,300,000 5,175,000 1,945,000
SMEBC - Series 2016 58,870,000 2.00% - 5.00% 2040 57,530,000 — 1,200,000 56,330,000 1,380,000
SMEBC - Series 2017 44,005,000 2.00% - 5.00% 2044 43,075,000 — 170,000 42,905,000 175,000
Umamortized Premium 12,338,010 — 1,381,011 10,956,999 1,335,030
Total Bonded Debt 162,148,010 — 7,016,011 155,131,999 7,025,030
Other Long-term Liabilities:
Accrued leave liabilities 10,058,872 — 64,454 9,994,418 1,199,330
Net pension liability 231,330,127 21,757,768 — 253,087,895 —
Net OPEB liability 15,274,063 — 1,292,201 13,981,862 —
Deposits refundable 3,066 20 3,086 —
Federal Loan Fund Repayment Contingency 23,704,170 — 2,108,842 21,595,328 —
Total Other liabilities 280,370,298 21,757,788 3,465,497 298,662,589 1,199,330
Total
$
442,518,308 21,757,788 10,481,508 453,794,588 8,224,360
Due within one year (8,224,360)
Total noncurrent liabilities
$
445,570,228
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
59
Year ended June 30, 2021
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Mississippi Medical Center:
Bonded Debt
MCEBC - Series 1998B 41,075,000$ 3.88% - 5.90% 2024
$
14,600,000 — 3,360,000 11,240,000 3,550,000
MCEBC - Series 2010B 20,000,000 6.84% 2035 20,000,000 — 20,000,000 — —
MCEBC - Series 2012A 51,860,000 4.00% - 5.00% 2041 51,860,000 — 51,860,000 — —
MCEBC - Series 2012B 53,390,000 4.064% - 4.822% 2038 53,390,000 — 53,390,000 — —
MCEBC - Series 2017A 137,635,000 3.00% - 5.00% 2047 137,390,000 — — 137,390,000 —
MCEBC - Series 2017B 12,345,000 2.45% - 3.10% 2024 9,585,000 — 2,830,000 6,755,000 2,905,000
MCEBC - Series 2019 24,380,000 5.00% 2035 23,495,000 — 450,000 23,045,000 515,000
MCEBC - Series 2020B 158,125,000 .445% - 2.917% 2041 — 158,125,000 3,345,000 154,780,000 1,735,000
Unamortized premium 18,408,964 — 2,371,312 16,037,652 1,459,717
Total Bonded Debt 328,728,964 158,125,000 137,606,312 349,247,652 10,164,717
Note Payable
University of Mississippi 2.00% 2026 8,336,907 4,773,981 — 13,110,888 2,819,861
University of Mississippi 0.93% 2026 — 3,748,012 — 3,748,012 723,518
Total Note Payable 8,336,907 8,521,993 — 16,858,900 3,543,379
Capital Leases - Various Equipment Various 2025 — 7,405,000 1,460,000 5,945,000 1,455,000
Other Long-term Liabilities:
Accrued leave liabilities 77,435,135 — 3,958,136 73,476,999 10,172,843
Federal Loan Fund Repayment Contingency 3,357,965 — 724,922 2,633,043 —
Net pension liability 1,360,163,256 137,938,643 — 1,498,101,899 —
Net OPEB liability 64,529,186 — 4,175,881 60,353,305 —
Reserve for unpaid claims 32,281,000 — 931,000 31,350,000 4,254,000
Total Other liabilities 1,537,766,542 137,938,643 9,789,939 1,665,915,246 14,426,843
Total
$
1,874,832,413 311,990,636 148,856,251 2,037,966,798 29,589,939
Due within one year (29,589,939)
Total noncurrent liabilities
$
2,008,376,859
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
60
Year ended June 30, 2021
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
IHL Board Office:
Other Long-term Liabilities:
Accrued leave liabilities
$
777,182 22,021 — 799,203 48,258
Net pension liability 18,717,421 1,465,844 — 20,183,265 —
Net OPEB liability 759,685 — 98,637 661,048 —
Reserve for unpaid claims 34,956,609 — 3,240,250 31,716,359 6,190,120
Total Other liabilities
$
55,210,897 1,487,865 3,338,887 53,359,875 6,238,378
Due within one year (6,238,378)
Total noncurrent liabilities $ 47,121,497
Year ended June 30, 2021
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
MCVS:
Other Long-term Liabilities:
Accrued leave liabilities
$
60,867 — 5,176 55,691 10,873
Net pension liability 1,750,782 174,936 — 1,925,718 —
Total Other liabilities
$
1,811,649 174,936 5,176 1,981,409 10,873
Due within one year (10,873)
Total noncurrent liabilities
$
1,970,536
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
61
Year ended June 30, 2021
Description and Purpose
Beginning
balance
Additions Deletions Total
Elimination
Entries
Ending
balance
Due within
one year
State of Mississippi Institutions of Higher Learning -- Combined:
Total bonded debt $ 1,226,183,775 158,125,000 180,687,210 1,203,621,565 — 1,203,621,565 51,823,969
Total capital leases 650,067 7,405,000 1,660,840 6,394,227 — 6,394,227 1,576,201
Reserves for unpaid claims 67,237,609 — 4,171,250 63,066,359 — 63,066,359 10,444,120
Other long-term liabilities and notes payable:
Net pension liability 2,843,514,960 279,495,275 — 3,123,010,235 — 3,123,010,235 —
Net OPEB liability 157,499,028 — 11,496,820 146,002,208 — 146,002,208 —
Accrued leave liabilities 145,397,987 1,044,169 5,420,077 141,022,079 — 141,022,079 18,133,551
Deposits refundable 1,834,844 1,113,905 1,261,307 1,687,442 — 1,687,442 —
Notes payable from direct borrowings 12,559,112 8,521,993 1,791,285 19,289,820 (8,521,993) 10,767,827 1,726,600
Refundable government advances and other 47,688,067 — 6,862,758 40,825,309 — 40,825,309 —
Total other long-term liabilities and notes payable 3,208,493,998 290,175,342 26,832,247 3,471,837,093 (8,521,993) 3,463,315,100 19,860,151
Total
$
4,502,565,449 455,705,342 213,351,547 4,744,919,244 (8,521,993) 4,736,397,251 83,704,441
Due within one year (83,704,441)
Total noncurrent liabilities
$
4,652,692,810
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
62
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Alcorn State University:
Bonded Debt
EBC - Series 2009A 47,000,000$ 5.125% - 5.25% 2040
$
915,000 — 915,000 — —
EBC - Series 2016 43,630,000 2.00% - 5.00% 2040 43,375,000 — — 43,375,000 1,130,000
Unamortized Premium 3,802,136 — 192,512 3,609,624 192,513
Total Bonded Debt 48,092,136 — 1,107,512 46,984,624 1,322,513
Other Long-term Liabilities:
Accrued leave liabilities 3,795,711 1,075,758 1,569,356 3,302,113 682,160
Net pension liability 75,156,617 630,605 — 75,787,222 —
Net OPEB liability 4,425,422 293,425 — 4,718,847 —
Deposits refundable 669,585 8,851 — 678,436 —
Total Other liabilities 84,047,335 2,008,639 1,569,356 84,486,618 682,160
Total
$
132,139,471 2,008,639 2,676,868 131,471,242 2,004,673
Due within one year (2,004,673)
Total noncurrent liabilities
$
129,466,569
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
63
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Delta State University:
Bonded Debt
EBC - Series 2016
$
15,105,000 2.00% - 5.00% 2039
$
13,325,000 — 585,000 12,740,000 595,000
Total Bonded Debt 13,325,000 — 585,000 12,740,000 595,000
Other Long-term Liabilities:
Accrued leave liabilities 1,505,103 — 265,702 1,239,401 308,223
Deposits refundable 104,209 — 2,865 101,344 —
Net pension liability 44,872,460 3,463,945 — 48,336,405 —
Net OPEB liability 3,268,272 288,405 — 3,556,677 —
Federal Loan Fund Repayment Contingency 301,640 42,684 — 344,324 —
Total Other liabilities 50,051,684 3,795,034 268,567 53,578,151 308,223
Total
$
63,376,684 3,795,034 853,567 66,318,151 903,223
Due within one year (903,223)
Total noncurrent liabilities
$
65,414,928
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
64
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Jackson State University:
Bonded Debt
EBC - Series 1982 4,000,000$ 1.00% - 3.00% 2021
$
345,000 — 170,000 175,000 175,000
EBC - Series 2010A-1 31,325,000 3.00% - 5.00% 2034 505,000 — 505,000 — —
EBC - Series 2015A 57,595,000 2.00% - 5.00% 2045 55,295,000 — 1,165,000 54,130,000 2,505,000
EBC - Series 2015B 13,065,000 0.069% - 2.60% 2021 2,755,000 — 2,005,000 750,000 750,000
EBC - Series 2017 6,000,000 3.38% 2028 6,000,000 — — 6,000,000 —
EBC - Series 2017A 29,745,000 1.60% - 3.70% 2034 29,195,000 — 235,000 28,960,000 785,000
Unamortized premium 7,837,791 — 305,376 7,532,415 305,376
Total Bonded Debt 101,932,791 — 4,385,376 97,547,415 4,520,376
Capital Leases - Buses 1,127,000 4.56% 675,835 — 110,750 565,085 115,858
Total Capital Leases 675,835 — 110,750 565,085 115,858
Other Long-term Liabilities:
Accrued leave liabilities 4,190,958 2,068,846 — 6,259,804 450,706
Net pension liability 128,859,771 — 2,458,559 126,401,212 —
Net OPEB liability 7,183,715 190,521 — 7,374,236 —
Deposits refundable 180,220 666,347 — 846,567 —
Federal Loan Fund Repayment Contingency 1,912,787 — — 1,912,787 —
Notes Payable 217,285 — 107,025 110,260 110,260
Total Other liabilities 142,544,736 2,925,714 2,565,584 142,904,866 560,966
Total
$
245,153,362 2,925,714 7,061,710 241,017,366 5,197,200
Due within one year (5,197,200)
Total noncurrent liabilities
$
235,820,166
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
65
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi State University:
Bonded Debt
Dormitory Revenue System 2,250,000$ 3.00% 2022
$
190,000 — 90,000 100,000 100,000
Student Apartments 2,038,000 3.00% 2023 260,000 — 85,000 175,000 85,000
EBC - Series 2009A-1 29,615,000 2.50% - 5.25% 2040 755,000 — 755,000 — —
EBC - Series 2009A-2 17,105,000 2.75% - 5.00% 2025 1,860,000 — 1,860,000 — —
EBC - Series 2011 54,370,000 2.00% - 5.00% 2043 3,825,000 — 1,225,000 2,600,000 1,270,000
EBC - Series 2013 60,470,000 2.00% - 5.00% 2044 10,115,000 — 570,000 9,545,000 585,000
EBC - Series 2014A 89,810,000 2.00% - 5.00% 2044 76,555,000 — 3,625,000 72,930,000 3,790,000
EBC - Series 2014B 23,435,000 0.29% - 4.813% 2044 19,225,000 — 950,000 18,275,000 975,000
EBC - Series 2015 56,010,000 2.00% - 5.00% 2046 52,945,000 — 1,090,000 51,855,000 1,130,000
EBC - Series 2017 63,270,000 2.00% - 5.00% 2046 62,660,000 — 835,000 61,825,000 3,500,000
EBC - Series 2017A 92,075,000 2.00% - 5.00% 2044 91,870,000 — 205,000 91,665,000 210,000
Unamortized premium 20,460,048 — 2,669,800 17,790,248 2,533,566
Total Bonded Debt 340,720,048 — 13,959,800 326,760,248 14,178,566
Other Long-term Liabilities:
Accrued leave liabilities 23,274,547 2,860,281 — 26,134,828 3,571,419
Net pension liability 517,960,848 40,252,631 — 558,213,479 —
Net OPEB liability 29,735,714 3,319,181 — 33,054,895 —
Deposits refundable 48,907 — 5,854 43,053 —
Federal Loan Fund Repayment Contingency 13,331,471 — 4,204,649 9,126,822 —
Total Other liabilities 584,351,487 46,432,093 4,210,503 626,573,077 3,571,419
Total
$
925,071,535 46,432,093 18,170,303 953,333,325 17,749,985
Due within one year (17,749,985)
Total noncurrent liabilities
$
935,583,340
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
66
Year ended June 30, 2020
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi University for Women:
Other Long-term Liabilities:
Accrued leave liabilities
$
1,092,220 36,575 — 1,128,795 45,152
Net pension liability 38,566,359 807,262 — 39,373,621 —
Net OPEB liability 2,364,085 203,279 — 2,567,364 —
Federal Loan Fund Repayment Contingency 813,257 — 219,158 594,099 —
Total Other liabilities
$
42,835,921 1,047,116 219,158 43,663,879 45,152
Due within one year (45,152)
Total noncurrent liabilities
$
43,618,727
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
67
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
Mississippi Valley State University:
Bonded Debt
EBC - Series 2007 19,015,000$ 4.00% 2022
$
535,000 — 180,000 355,000 190,000
EBC - Series 2015 17,270,000 2.00% 2037 16,780,000 — 445,000 16,335,000 485,000
Total Bonded Debt 17,315,000 — 625,000 16,690,000 675,000
Capital Leases 168,084 — 83,102 84,982 84,982
Total Capital Leases 168,084 — 83,102 84,982 84,982
Other Long-term Liabilities:
Accrued leave liabilities 1,620,143 30,612 — 1,650,755 218,865
Net pension liability 42,303,133 1,893,463 — 44,196,596 —
Net OPEB liability 3,080,141 234,789 — 3,314,930 —
Deposits refundable 47,288 — 11,026 36,262 —
Total Other liabilities 47,050,705 2,158,864 11,026 49,198,543 218,865
Total
$
64,533,789 2,158,864 719,128 65,973,525 978,847
Due within one year (978,847)
Total noncurrent liabilities
$
64,994,678
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
68
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Mississippi:
Bonded Debt
EBC - Series 2009A
$
19,870,000 3.50% - 4.50% 2030
$
935,000 — 935,000 — —
EBC - Series 2009B 24,165,000 3.623% - 5.00% 2021 5,050,000 — 2,450,000 2,600,000 2,600,000
EBC - Series 2009C 14,770,000 3.25% - 4.75% 2035 490,000 — 490,000 — —
EBC - Series 2011 27,995,000 3.00% - 5.00% 2032 3,510,000 — 1,050,000 2,460,000 1,165,000
EBC - Series 2013C 62,900,000 3.22% 2034 62,900,000 — 62,900,000 — —
EBC - Series 2013D 12,100,000 3.10% 2021 3,854,674 — 2,523,377 1,331,297 1,331,297
EBC - Series 2015 12,600,000 Variable 2026 9,450,000 — 9,450,000 — —
EBC - Series 2015A 15,660,000 2.00% - 4.00% 2040 14,975,000 — 230,000 14,745,000 265,000
EBC - Series 2015B 10,125,000 1.375% - 3.75% 2030 7,795,000 — 615,000 7,180,000 625,000
EBC - Series 2015C 31,630,000 2.00% - 5.00% 2047 29,795,000 — 635,000 29,160,000 655,000
EBC - Series 2015D 17,660,000 0.993% - 4.452% 2037 15,585,000 — 710,000 14,875,000 725,000
EBC - Series 2016A 33,245,000 2.00% - 5.00% 2035 28,930,000 — 1,940,000 26,990,000 1,970,000
EBC - Series 2017 38,995,000 2.00% - 5.00% 2035 38,400,000 — — 38,400,000 1,510,000
EBC - Series 2019A 73,350,000 3.00% - 5.00% 2036 — 73,350,000 — 73,350,000 1,425,000
EBC - Series 2019B 3,365,000 1.94% - 2.05% 2024 — 3,365,000 — 3,365,000 885,000
Unamortized Premium 8,331,904 13,033,330 1,237,017 20,128,217 1,617,136
Total Bonded Debt 230,001,578 89,748,330 85,165,394 234,584,514 14,773,433
Other Long-term Liabilities:
Accrued leave liabilities 16,504,919 845,316 — 17,350,235 2,078,000
Net pension liability 325,309,886 13,934,953 — 339,244,839 —
Net OPEB liability 20,248,697 2,100,448 — 22,349,145 —
Deposits refundable 108,814 17,302 — 126,116 —
Note Payable from direct borrowings - Hancock Bank 6,905,779 — 911,643 5,994,136 935,538
Note Payable from direct borrowings - Renasant Bank 7,179,261 — 724,545 6,454,716 745,527
Note Payable from direct borrowings - Trustmark Bank 16,930,479 — 16,930,479 — —
Federal Loan Fund Repayment Contingency 9,236,200 — 588,300 8,647,900 —
Total Other liabilities 402,424,035 16,898,019 19,154,967 400,167,087 3,759,065
Total
$
632,425,613 106,646,349 104,320,361 634,751,601 18,532,498
Due within one year (18,532,498)
Total noncurrent liabilities
$
616,219,103
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
69
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Southern Mississippi:
Bonded Debt
SMEBC - Series 2009 49,900,000$ 2.75% - 5.38% 2037
$
735,000 — 735,000 — —
SMEBC - Series 2013 51,875,000 2.00% - 5.00% 2044 8,130,000 — 395,000 7,735,000 470,000
SMEBC - Series 2015A 38,600,000 2.00% - 5.00% 2034 36,160,000 — 2,165,000 33,995,000 1,495,000
SMEBC - Series 2015B 16,690,000 0.50% - 3.25% 2034 9,735,000 — 2,260,000 7,475,000 2,300,000
SMEBC - Series 2016 58,870,000 2.00% - 5.00% 2040 57,890,000 — 360,000 57,530,000 1,200,000
SMEBC - Series 2017 44,005,000 2.00% - 5.00% 2044 43,240,000 — 165,000 43,075,000 170,000
Umamortized Premium 13,714,071 — 1,376,061 12,338,010 1,381,012
Total Bonded Debt 169,604,071 — 7,456,061 162,148,010 7,016,012
Other Long-term Liabilities:
Accrued leave liabilities 9,451,309 607,563 — 10,058,872 1,207,065
Net pension liability 224,453,669 6,876,458 — 231,330,127 —
Net OPEB liability 14,044,422 1,229,641 — 15,274,063 —
Deposits refundable 2,705 361 — 3,066 —
Federal Loan Fund Repayment Contingency 26,038,153 — 2,333,983 23,704,170 —
Total Other liabilities 273,990,258 8,714,023 2,333,983 280,370,298 1,207,065
Total
$
443,594,329 8,714,023 9,790,044 442,518,308 8,223,077
Due within one year (8,223,077)
Total noncurrent liabilities
$
434,295,231
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
70
Year ended June 30, 2020
Description and Purpose
Original
Issue
Annual
Interest Rate
Maturity
(fiscal year)
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
University of Mississippi Medical Center:
Bonded Debt
MCEBC - Series 1998B 41,075,000$ 3.88% - 5.90% 2024
$
17,785,000 — 3,185,000 14,600,000 3,360,000
MCEBC - Series 2010A 24,870,000 5.92% - 6.69% 2032 24,870,000 — 24,870,000 — —
MCEBC - Series 2010B 20,000,000 6.84% 2035 20,000,000 — — 20,000,000 —
MCEBC - Series 2010C 5,130,000 2.50% to 5.00% 2020 605,000 — 605,000 — —
MCEBC - Series 2012A 51,860,000 4.00% to 5.00% 2041 51,860,000 — — 51,860,000 —
MCEBC - Series 2012B 53,390,000 4.064% to 4.822% 2038 53,390,000 — — 53,390,000 —
MCEBC - Series 2017A 137,635,000 3.00% to 5.00% 2047 137,390,000 — — 137,390,000 —
MCEBC - Series 2017B 12,345,000 2.45% to 3.10% 2024 12,345,000 — 2,760,000 9,585,000 2,830,000
MCEBC - Series 2019 24,380,000 5.00% 2035 — 24,380,000 885,000 23,495,000 450,000
Unamortized premium 13,552,629 6,171,165 1,314,830 18,408,964 1,487,264
Total Bonded Debt 331,797,629 30,551,165 33,619,830 328,728,964 8,127,264
Note Payable
University of Mississippi 2.00% 2025 — 8,336,907 — 8,336,907 1,553,238
Total Note Payable — 8,336,907 — 8,336,907 1,553,238
Other Long-term Liabilities:
Accrued leave liabilities 59,676,430 17,758,705 — 77,435,135 16,010,226
Federal Loan Fund Repayment Contingency 4,081,791 — 723,826 3,357,965 —
Net pension liability 1,232,363,510 127,799,746 — 1,360,163,256 —
Net OPEB liability 56,789,549 7,739,637 — 64,529,186 —
Reserve for unpaid claims 35,888,000 — 3,607,000 32,281,000 4,941,000
Total Other liabilities 1,388,799,280 153,298,088 4,330,826 1,537,766,542 20,951,226
Total
$
1,720,596,909 192,186,160 37,950,656 1,874,832,413 30,631,728
Due within one year (30,631,728)
Total noncurrent liabilities
$
1,844,200,685
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
71
Year ended June 30, 2020
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
IHL Board Office:
Other Long-term Liabilities:
Accrued leave liabilities
$
719,920 57,262 — 777,182 51,758
Net pension liability 17,819,021 898,400 — 18,717,421 —
Net OPEB liability 691,744 67,941 — 759,685 —
Reserve for unpaid claims 36,890,825 — 1,934,216 34,956,609 7,956,246
Total Other liabilities
$
56,121,510 1,023,603 1,934,216 55,210,897 8,008,004
Due within one year (8,008,004)
Total noncurrent liabilities $ 47,202,893
Year ended June 30, 2020
Description and Purpose
Beginning
balance
Additions Deletions
Ending
balance
Due within
one year
MCVS:
Other Long-term Liabilities:
Accrued leave liabilities
$
68,450 — 7,583 60,867 10,204
Net pension liability 1,652,816 97,966 — 1,750,782 —
Total Other liabilities
$
1,721,266 97,966 7,583 1,811,649 10,204
Due within one year (10,204)
Total noncurrent liabilities
$
1,801,445
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
72
Year ended June 30, 2020
Description and Purpose
Beginning
balance
Additions Deletions Total
Elimination
Entries
Ending
balance
Due within
one year
State of Mississippi Institutions of Higher Learning -- Combined:
Total bonded debt $ 1,252,788,253 120,299,495 146,903,973 1,226,183,775 — 1,226,183,775 51,208,164
Total capital leases 843,919 — 193,852 650,067 — 650,067 200,840
Reserves for unpaid claims 72,778,825 — 5,541,216 67,237,609 — 67,237,609 12,897,246
Other long-term liabilities and notes payable:
Net pension liability 2,649,318,090 196,655,429 2,458,559 2,843,514,960 — 2,843,514,960 —
Net OPEB liability 141,831,761 15,667,267 — 157,499,028 — 157,499,028 —
Accrued leave liabilities 121,899,710 25,340,918 1,842,641 145,397,987 — 145,397,987 24,633,778
Deposits refundable 1,161,728 692,861 19,745 1,834,844 — 1,834,844 —
Notes payable from direct borrowings 31,232,804 8,336,907 18,673,692 20,896,019 (8,336,907) 12,559,112 1,791,325
Refundable government advances and other 55,715,299 42,684 8,069,916 47,688,067 — 47,688,067 —
Total other long-term liabilities and notes payable 3,001,159,392 246,736,066 31,064,553 3,216,830,905 (8,336,907) 3,208,493,998 26,425,103
Total
$
4,327,570,389 367,035,561 183,703,594 4,510,902,356 (8,336,907) 4,502,565,449 90,731,353
Due within one year (90,731,353)
Total noncurrent liabilities
$
4,411,834,096
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
73
The annual debt service requirements for the outstanding debt as of June 30, 2021 for each of the respective universities
within the IHL System are as follows:
Bonded Capital Notes
University - fiscal year(s) Debt Leases Payable Interest Total
Alcorn State University:
2022 $ 1,422,512 — — 1,693,550 3,116,062
2023 1,527,512 — — 1,648,925 3,176,437
2024 1,627,512 — — 1,600,200 3,227,712
2025 1,752,512 — — 1,532,500 3,285,012
2026 1,887,512 — — 1,451,125 3,338,637
2027 - 2031 11,077,560 — — 5,836,625 16,914,185
2032 - 2036 14,336,992 — — 3,353,750 17,690,742
2037 - 2041 12,030,000 — — 856,025 12,886,025
Total $ 45,662,112 — — 17,972,700 63,634,812
Delta State University:
2022 $ 610,000 — — 470,850 1,080,850
2023 620,000 — — 458,550 1,078,550
2024 650,000 — — 436,100 1,086,100
2025 500,000 — — 407,350 907,350
2026 525,000 — — 381,725 906,725
2027 - 2031 3,015,000 — — 1,530,000 4,545,000
2032 - 2036 3,650,000 — — 891,600 4,541,600
2037 - 2041 2,575,000 — — 157,300 2,732,300
Total $ 12,145,000 — — 4,733,475 16,878,475
Jackson State University:
2022 $ 4,690,376 121,201 — 4,029,052 8,840,629
2023 5,885,376 126,791 — 3,809,012 9,821,179
2024 6,090,376 132,639 — 3,561,857 9,784,872
2025 6,305,376 68,596 — 3,304,576 9,678,548
2026 6,535,376 — — 3,041,289 9,576,665
2027 - 2031 33,371,880 — — 11,163,997 44,535,877
2032 - 2036 23,361,880 — — 4,467,064 27,828,944
2037 - 2041 3,626,880 — — 2,236,880 5,863,760
2042 - 2046 3,159,519 — — 1,632,895 4,792,414
Total $ 93,027,039 449,227 — 37,246,622 130,722,888
Mississippi State University:
2022 $ 14,348,456 — — 12,756,523 27,104,979
2023 14,545,103 — — 12,228,438 26,773,541
2024 14,899,553 — — 11,645,381 26,544,934
2025 13,053,348 — — 11,049,615 24,102,963
2026 13,403,753 — — 10,471,991 23,875,744
2027 - 2031 64,216,439 — — 43,824,427 108,040,866
2032 - 2036 68,139,535 — — 29,581,817 97,721,352
2037 - 2041 66,090,530 — — 15,846,452 81,936,982
2042 - 2046 43,884,965 — — 3,302,332 47,187,297
Total $ 312,581,682 — — 150,706,976 463,288,658
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
74
Bonded Capital Notes
University - fiscal year(s) Debt Leases Payable Interest Total
Mississippi Valley State University:
2022 $ 725,000 — — 537,906 1,262,906
2023 575,000 — — 514,506 1,089,506
2024 625,000 — — 497,256 1,122,256
2025 675,000 — — 481,631 1,156,631
2026 725,000 — — 464,756 1,189,756
2027 - 2031 4,570,000 — — 1,949,388 6,519,388
2032 - 2036 6,525,000 — — 1,041,088 7,566,088
2037 - 2041 1,595,000 — — 59,813 1,654,813
—
Total $ 16,015,000 — — 5,546,344 21,561,344
University of Mississippi:
2022 $ 12,837,878 — 1,726,600 8,692,206 23,256,684
2023 13,056,458 — 1,773,371 8,219,993 23,049,822
2024 13,611,458 — 1,821,133 7,678,855 23,111,446
2025 14,256,458 — 1,870,745 7,054,825 23,182,028
2026 14,917,220 — 1,921,427 6,383,792 23,222,439
2027 - 2031 76,331,144 — 1,654,551 21,619,765 99,605,460
2032 - 2036 54,303,445 — — 8,238,922 62,542,367
2037 - 2041 12,007,094 — — 3,103,225 15,110,319
2042 - 2046 8,489,926 — — 1,064,250 9,554,176
—
Total $ 219,811,081 — 10,767,827 72,055,833 302,634,741
University of Southern Mississippi:
2022 $ 7,025,030 — — 6,221,251 13,246,281
2023 6,097,947 — — 5,997,599 12,095,546
2024 6,514,927 — — 5,774,466 12,289,393
2025 6,937,129 — — 5,538,026 12,475,155
2026 7,304,230 — — 5,278,009 12,582,239
2027 - 2031 42,747,162 — — 21,701,000 64,448,162
2032 - 2036 46,336,352 — — 11,633,150 57,969,502
2037 - 2041 23,460,764 — — 3,908,788 27,369,552
2042 - 2046 8,708,458 — — 485,350 9,193,808
Total $ 155,131,999 — — 66,537,639 221,669,638
University of Mississippi
Medical Center:
2022 $ 10,164,717 1,455,000 3,543,379 12,614,455 27,777,551
2023 10,479,739 1,480,000 3,842,276 11,981,166 27,783,181
2024 10,810,144 1,490,000 3,911,737 11,554,880 27,766,761
2025 10,270,543 1,520,000 3,982,524 11,178,110 26,951,177
2026 10,511,308 — 1,578,984 10,759,147 22,849,439
2027 - 2031 56,646,475 — — 47,799,162 104,445,637
2032 - 2036 69,574,183 — — 37,657,454 107,231,637
2037 - 2041 83,654,542 — — 26,917,461 110,572,003
2042 - 2046 71,145,330 — — 13,353,250 84,498,580
2047 - 2051 15,990,671 — — 717,000 16,707,671
Total $ 349,247,652 5,945,000 16,858,900 184,532,085 556,583,637
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
75
Bonded Capital Notes
University - fiscal year(s) Debt Leases Payable Interest Total
State of Mississippi - Institutions
of Higher Learning (Combined):
2022 $ 51,823,969 1,576,201 5,269,979 47,015,793 105,685,942
2023 52,787,135 1,606,791 5,615,647 44,858,189 104,867,762
2024 54,828,970 1,622,639 5,732,870 42,748,995 104,933,474
2025 53,750,366 1,588,596 5,853,269 40,546,633 101,738,864
2026 55,809,399 — 3,500,411 38,231,834 97,541,644
2027 - 2031 291,975,660 — 1,654,551 155,424,364 449,054,575
2032 - 2036 286,227,387 — — 96,864,845 383,092,232
2037 - 2041 205,039,810 — — 53,085,944 258,125,754
2042 - 2046 135,388,198 — — 19,838,077 155,226,275
2047 - 2051 15,990,671 — — 717,000 16,707,671
Total $ 1,203,621,565 6,394,227 27,626,727 539,331,674 1,776,974,193
The educational building corporations have pledged future designated revenues to repay $1.2 billion in EBC bonds.
Proceeds from bonds provided financing for the construction of various improvements and other capital expenditures. The
bonds are payable solely from appropriate designated revenues and are payable through 2047. Annual principal and interest
payments on the bonds are expected to require less than 4% of designated revenues. The total principal and interest
remaining to be paid on the bonds is $1.74 billion. Principal and interest paid for the current year and total designated
revenues were $177.4 million and $2.96 billion, respectively.
University of Mississippi Medical Center
On October 29, 2020, the Medical Center Educational Building Corporation issued $158,125,000 of Series 2020B revenue
bonds. The purpose of these bonds is to finance capital expenditures and to refund the Series 2010B bonds, Series 2012A
bonds, and Series 2012B bonds issued in the original principal amount of $125,250,000. The refunding of Series 2010B,
Series 2012A, and Series 2012B bonds will result in an economic gain of approximately $20,592,694.
The Series 2020B revenue refunding bonds bear an interest rate of 0.445% to 2.917% with interest due June 1 and December
1 of each year beginning December 2020. Principal matures beginning June 1, 2020 through June 1, 2041. Repayment of
the bonds is secured by a pledge of rental payments pursuant to a lease agreement between the Corporation and the Medical
Center.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
76
Note 11
Operating Expenses by Natural and Functional Classifications
The IHL System’s operating expenses by functional classification were as follows for the years ended June 30, 2021 and 2020:
Functional Classification
Salaries
and wages
Fringe
benefits Travel
Contractual
services
Utilities
Scholarships
and
fellowships
Commodities
Depreciation
expense
Other
Total
Instruction $ 484,671,310 173,492,961 1,123,377 32,944,797 338,016 1,022,691 14,426,219 — 257,431 708,276,802
Research 174,578,933 70,414,216 1,046,940 61,033,489 3,753,742 1,290,452 27,340,954 — 542,311 340,001,037
Public service 85,434,381 33,227,875 1,105,395 36,921,619 1,111,505 59,885 13,836,364 — 69,247 171,766,271
Academic support 82,608,820 29,040,664 234,788 32,917,809 472,678 262,801 22,409,869 — 57,237 168,004,666
Student services 48,430,090 17,403,664 2,222,701 14,798,511 210,009 814,941 6,357,818 — 319,157 90,556,891
Institutional support 140,884,098 68,453,014 385,588 114,263,520 557,316 476,238 32,296,222 — 4,297,092 361,613,088
Operation of plant 49,504,802 21,154,223 40,767 47,778,617 44,672,417 — 20,216,158 — 96,534 183,463,518
Student aid 2,305,237 6,335,675 27,010 300,076 — 226,639,095 699,313 — 148,118 236,454,524
Auxiliary enterprises 84,912,094 27,172,828 9,914,896 77,752,585 12,533,867 25,317,139 15,201,455 — 152,839 252,957,703
Depreciation — — — — — — — 170,848,756 — 170,848,756
Hospital 522,686,124 184,817,078 194,503 127,304,456 1,047,628 — 309,334,001 — — 1,145,383,790
Loan fund expense — — — 324,728 — — — — 1,277,405 1,602,133
1,676,015,889 631,512,198 16,295,965 546,340,207 64,697,178 255,883,242 462,118,373 170,848,756 7,217,371 3,830,929,179
Elimination entries — — — (52,851,990) — (34,056,997) — — — (86,908,987)
Total operating
expenses $ 1,676,015,889 631,512,198 16,295,965 493,488,217 64,697,178 221,826,245 462,118,373 170,848,756 7,217,371 3,744,020,192
2021
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
77
Functional Classification
Salaries
and wages
Fringe
benefits Travel
Contractual
services
Utilities
Scholarships
and
fellowships
Commodities
Depreciation
expense
Other
Total
Instruction $ 485,856,263 180,988,899 8,126,699 39,926,144 327,855 2,183,785 16,754,404 — 111,727 734,275,776
Research 182,217,133 72,949,298 7,270,653 75,036,822 3,546,892 2,468,056 35,982,378 — 249,045 379,720,277
Public service 83,684,638 32,077,326 3,385,287 31,523,145 936,652 190,536 15,809,472 — 8,684 167,615,740
Academic support 84,044,512 30,047,332 1,809,722 25,502,362 454,294 289,840 16,621,147 — 505,666 159,274,875
Student services 48,297,260 17,782,961 4,014,156 15,312,724 141,942 1,236,442 6,620,199 — 169,697 93,575,381
Institutional support 148,645,312 56,564,455 2,185,874 107,494,906 215,233 1,882,097 18,496,930 — 2,721,296 338,206,103
Operation of plant 50,373,817 22,124,934 162,639 47,994,872 43,010,648 — 17,861,810 — — 181,528,720
Student aid 4,217,231 5,608,793 56,203 1,366,003 — 221,055,998 180,033 — — 232,484,261
Auxiliary enterprises 86,636,921 29,065,006 11,493,737 83,804,088 15,490,540 27,341,190 18,071,891 — 58,326 271,961,699
Depreciation — — — — — — — 166,891,329 — 166,891,329
Hospital 540,619,774 192,335,389 715,434 123,484,103 1,324,813 — 295,180,554 — — 1,153,660,067
Loan fund expense — — — 309,880 — — — — 1,054,504 1,364,384
1,714,592,861 639,544,393 39,220,404 551,755,049 65,448,869 256,647,944 441,578,818 166,891,329 4,878,945 3,880,558,612
Elimination entries — — — (54,099,415) — (33,791,975) — — — (87,891,390)
Total operating
expenses $ 1,714,592,861 639,544,393 39,220,404 497,655,634 65,448,869 222,855,969 441,578,818 166,891,329 4,878,945 3,792,667,222
2020
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
78
Note 12
Operating Leases
Leased property under operating leases is composed of office rent, land, computer software and equipment. The
following is a schedule by year of the future minimum rental payments required under noncancelable operating leases:
Amount
Year ending June 30,
2022 $ 31,208,461
2023 26,409,094
2024 21,038,276
2025 19,215,415
2026 19,224,608
2027 - 2031 56,621,885
2032 - 2036 11,384,116
2037 - 2041 370,290
Total minimum payments
required $ 185,472,146
The total rental expense for all operating leases, except those with terms of a month or less that were not renewed, for
the years ending June 30, 2021 and 2020 approximated $34.8 million and $27.8 million, respectively.
Note 13
Construction Commitments and Financing
The IHL System has contracted for various construction projects as of June 30, 2021. Estimated costs to complete the
various projects and the sources of anticipated funding are presented below:
Remaining
estimated
Source of Funding
cost to
complete
Federal State Institutional Other
Alcorn State University $ 25,996,835 — 25,996,835 — —
Delta State University 5,713,746 — 5,713,746 — —
Jackson State University 20,962,401 — 20,962,401 — —
Mississippi State University 136,795,725 9,861,893 43,668,707 55,889,502 27,375,623
Mississippi University for Women 15,215,900 — 15,215,900 — —
Mississippi Valley State University 4,947,530 456,393 4,491,137 — —
University of Mississippi 208,274,000 — 71,627,000 85,147,000 51,500,000
University of Southern Mississippi 27,867,506 7,000,000 15,807,619 5,059,887 —
University of Mississippi Medical
Center 20,970,971 834,698 13,963,742 6,172,531 —
Totals $ 466,744,614 18,152,984 217,447,087 152,268,920 78,875,623
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
79
Note 14
Donor Restricted Endowments
The net appreciation on investments of donor restricted endowments that is available for authorization for expenditure
approximated $78.3 million and $32.8 million as of June 30, 2021 and 2020, respectively. These amounts are included
in the accompanying statement of net position in “net position – expendable for other purposes”, and “net position –
expendable for scholarships and fellowships.” The endowment investments totaled $403.6 million and $320.3 million
at June 30, 2021 and 2020, respectively.
Most endowments operate on the total-return concept as permitted by the Uniform Prudent Management of
Institutional Funds Act (UPMIFA) (Sections 79-11-701 through 79-11-719, MS Code, Ann. 1972) of 2006. The
annual rate for spendable transfers distributed annually, is 4% of the investment pool’s average unit value over the 36-
month period.
Note 15
Employee Benefits – Pension Plans
The IHL System participates in the following separately administered plans maintained by Public Employees’
Retirement System of Mississippi (PERS):
Plan Type Plan Name_______________________________________
Multiple-employer, defined benefit PERS Defined Benefit Plan
Multiple-employer, defined contribution Optional Retirement Plan (ORP) Defined Contribution Plan
The employees of the IHL System are covered by one of the pension plans outlined above (collectively, the Plans).
The Plans do not provide for measurements of assets and pension benefit obligations for individual entities. The
measurement date of the Plans is June 30, 2020 for fiscal year 2021 and June 30, 2019 for fiscal year 2020.
The funding methods and determination of benefits payable were established by the legislative acts creating such
plans, as amended, and in general, provide that the funds are to be accumulated from employee contributions,
participating entity contributions and income from the investment of accumulated funds. The plans are administered
by separate boards of trustees.
Information included within this note is based on the certification provided by consulting actuary, Cavanaugh
Macdonald Consulting, LLC.
A stand-alone audited financial report is issued for the Plans and is available at www.pers.ms.gov.
Disclosures under GASB Statement No. 68
The pension disclosures that follow for fiscal years 2021 and 2020 include all disclosures for GASB Statement No.
68 using the latest valuation report available (June 30, 2019). For fiscal year 2021, the measurement date for the PERS
defined benefit plan is June 30, 2020. For fiscal year 2020, the measurement date for the PERS defined benefit plan
is June 30, 2019. The IHL System is presenting net pension liability as of June 30, 2020 and 2019 for the fiscal years
2021 and 2020 financials, respectively.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
80
(a) PERS Defined Benefit Plan
Plan Description
The PERS of Mississippi was created with the purpose to provide pension benefits for all state and public education
employees, sworn officers of the Mississippi Highway Safety Patrol, other public employees whose employers have
elected to participate in PERS, elected members of the State Legislature and the President of the Senate. PERS
administers a cost-sharing, multiple-employer defined benefit pension plan. PERS is administered by a 10-member
Board of Trustees that includes the State Treasurer; one gubernatorial appointee who is a member of PERS; two state
employees; two PERS retirees; and one representative each from public schools and community colleges, state
universities, municipalities and counties. With the exception of the State Treasurer and the gubernatorial appointee,
all members are elected to staggered six-year terms by the constituents they represent.
Membership and Benefits Provided
Membership in PERS is a condition of employment granted upon hiring for qualifying employees and officials of the
State of Mississippi (the State), state universities, community and junior colleges, and teachers and employees of the
public school districts. Members and employers are statutorily required to contribute certain percentages of salaries
and wages as specified by the Board of Trustees. A member who terminates employment from all covered employers
and who is not eligible to receive monthly retirement benefits may request a full refund of his or her accumulated
member contributions plus interest. Upon withdrawal of contributions, a member forfeits service credit represented
by those contributions.
Participating members who are vested and retire at or after age 60 or those who retire regardless of age with at least
30 years of creditable service (25 years of creditable service for employees who became members of PERS before
July 1, 2011) are entitled, upon application, to an annual retirement allowance payable monthly for life in an amount
equal to 2.0% of their average compensation for each year of creditable service up to and including 30 years (25 years
for those who became members of PERS before July 1, 2011), plus 2.5% for each additional year of creditable service
with an actuarial reduction in the benefit for each year of creditable service below 30 years or the number of years in
age that the member is below 65, whichever is less. Average compensation is the average of the employee’s earnings
during the four highest compensated years of creditable service. A member may elect a reduced retirement allowance
payable for life with the provision that, after death, a beneficiary receives benefits for life or for a specified number
of years. Benefits vest upon completion of eight years of membership service (four years of membership service for
those who became members of PERS before July 1, 2007). PERS also provides certain death and disability benefits.
In the event of death prior to retirement of any member whose spouse and/or children are not entitled to a retirement
allowance, the deceased member’s accumulated contributions and interest are paid to the designated beneficiary.
A Cost-of-Living Adjustment (COLA) payment is made to eligible retirees and beneficiaries. The COLA is equal to
3.0% of the annual retirement allowance for each full fiscal year of retirement up to the year in which the retired
member reaches age 60 (55 for those who became members of PERS before July 1, 2011), with 3.0% compounded
for each fiscal year thereafter.
Contributions
Plan provisions and the Board of Trustees’ authority to determine contribution rates are established by Miss. Code
Ann. § 25-11-1 et seq., (1972, as amended) and may be amended only by the Mississippi Legislature.
Policies for PERS provide for employer and member contributions at actuarially determined rates that, expressed as
percentages of annual covered payroll, are adequate to accumulate sufficient assets to pay benefits when due. PERS
members were required to contribute 9.00% of their annual pay. The institution’s contractually required contribution
rate for the years ended June 30, 2021 and 2020 was 17.40% for each year of annual payroll. Contributions from the
IHL System are recognized when legally due based on statutory requirements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
81
Employer Contributions
The IHL System’s contributions to PERS for the years ended June 30, 2021 and 2020 were $183.3 million and $186.9
million, respectively. The IHL System’s proportionate share was calculated on the basis of historical contributions.
Employer allocation percentages are based on the ratio of each employer’s actual contribution to the Plan’s total actual
contributions.
The following table provides the IHL System’s contributions used in the determination of its proportionate share of
collective pension amount reported:
Proportionate
share of
contributions
Allocation
percentage of
proportionate
share of collective
pension amount
Change in
proportionate share
of collective pension
amount
PERS defined benefit plan:
2021 $ 186,911,786 16.13% -0.03%
2020 165,800,374 16.16% 0.24%
Net Pension Liability
The IHL System’s proportion of the net pension liability at June 30, 2021 and 2020 is as follows:
Proportionate
share of net
pension liability
Proportion of net
pension liability
PERS defined benefit plan:
2021 $ 3,123,010,235 16.13%
2020 2,843,514,960 16.16%
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Annual changes to the net pension liability resulting from differences between expected and actual experience with
regard to economic and demographic factors and from changes of assumptions about future economic or demographic
factors or other inputs are deferred and amortized over the average of the expected remaining service life of active
and inactive members. For the years ended June 30, 2021 and 2020, the remaining service life was 3.66 and 3.76
years, respectively. Differences between projected and actual earnings on pension plan investments are amortized over
a closed period of 5 years. The first year of amortization is recognized as pension expense with the remaining years
shown as a deferred outflow of resources. The deferred outflow of resources reported by an employer includes
contributions made by the employer during its fiscal year that will be reflected in the net pension liability in the next
measurement period.
The IHL System’s proportionate share of the collective pension expense for the years ended June 30, 2021 and 2020
is equal to the collective pension expense multiplied by the employer’s allocation percentage, or $296.6 million and
$274.5 million, respectively. Since certain expense items are amortized over closed periods each year, the deferred
portions of these items must be tracked annually. If the amounts serve to reduce pension expense they are labeled
deferred inflows. If they will increase pension expense they are labeled deferred outflows. After amortization of these
deferred amounts, the IHL System’s net pension expense at June 30, 2021 and 2020, was $120.0 million and $108.0
million, respectively.
The table below provides a summary of the deferred outflows and inflows of resources related to pensions:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
82
Differences
between
expected and
actual
experience
Changes of
assumptions
Changes in
proportion and
differences
between employer
contributions and
proportionate
share of
contributions
Contributions
subsequent to
the
measurement
date
Net difference
between
projected and
actual investment
earnings on
pension plan
investment
Total deferred
outflows of
resources
Changes in
proportion and
differences
between employer
contributions and
proportionate
share of
contributions
Total deferred
inflows of
resources
Alcorn State University $ 702,300 452,608 — 4,286,010 3,323,435 8,764,353 3,504,657 3,504,657
Delta State University 443,609 285,890 — 3,051,947 2,099,251 5,880,697 868,039 868,039
Jackson State University 1,145,407 738,175 — 7,674,848 5,420,311 14,978,741 14,479,761 14,479,761
Mississippi State University 5,413,364 3,488,725 9,071,948 37,491,151 25,617,196 81,082,384 — —
Mississippi University for
Women 381,896 246,119 — 2,593,446 1,807,214 5,028,675 362,911 362,911
Mississippi Valley State
University 414,048 266,840 — 2,595,820 1,959,366 5,236,074 801,013 801,013
University of Mississippi 3,215,030 2,071,975 — 21,641,091 15,214,210 42,142,306 2,748,937 2,748,937
University of Southern
Mississippi 2,196,833 1,415,782 — 14,836,009 10,395,882 28,844,506 3,198,517 3,198,517
University of Mississippi
Medical Center 13,003,701 8,380,433 30,735,253 85,783,197 61,536,294 199,438,878 — —
Executive Office 175,193 112,906 — 1,138,221 829,051 2,255,371 394,115 394,115
MCVS 16,716 10,773 1,121 107,124 79,101 214,835 — —
Total $ 27,108,097 17,470,226 39,808,322 181,198,864 128,281,311 393,866,820 26,357,950 26,357,950
2021
Deferred outflows
Deferred inflows
Contributions subsequent to the measurement date of $181.2 million reported as deferred outflows of resources will be recognized as a reduction of the net pension liability
in the year ended June 30, 2022.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
83
Differences
between
expected and
actual
experience
Changes of
assumptions
Changes in
proportion and
differences
between employer
contributions and
proportionate
share of
contributions
Contributions
subsequent to
the
measurement
date
Total deferred
outflows of
resources
Differences
between
expected and
actual
experience
Changes in
proportion and
differences
between employer
contributions and
proportionate
share of
contributions
Net difference
between projected
and actual
investment
earnings on
pension plan
investment
Total deferred
inflows of
resources
Alcorn State University $ 44,834 743,024 — 4,789,190 5,577,048 81,577 3,071,170 829,150 3,981,897
Delta State University 28,595 473,894 903,340 2,970,686 4,376,515 52,029 — 528,824 580,853
Jackson State University 74,776 1,239,247 — 7,808,898 9,122,921 136,058 17,408,929 1,382,893 18,927,880
Mississippi State University 330,226 5,472,766 2,484,622 36,670,189 44,957,803 600,861 — 6,107,135 6,707,996
Mississippi University for
Women 23,293 386,022 — 2,605,550 3,014,865 42,382 1,294,472 430,767 1,767,621
Mississippi Valley State
University 26,146 433,307 — 2,823,856 3,283,309 47,573 213,231 483,533 744,337
University of Mississippi 200,689 3,325,982 348,291 21,929,628 25,804,590 365,163 — 3,711,509 4,076,672
University of Southern
Mississippi 136,849 2,267,978 — 13,777,396 16,182,223 249,004 2,747,453 2,530,868 5,527,325
University of Mississippi
Medical Center 804,641 13,335,141 50,499,628 88,706,272 153,345,682 1,464,080 — 14,880,868 16,344,948
Executive Office 11,073 183,507 — 1,194,824 1,389,404 20,147 277,821 204,778 502,746
MCVS 1,036 17,165 20,551 114,024 152,776 1,885 — 19,154 21,039
Total $ 1,682,158 27,878,033 54,256,432 183,390,513 267,207,136 3,060,759 25,013,076 31,109,479 59,183,314
2020
Deferred outflows
Deferred inflows
Contributions subsequent to the measurement date of $183.4 million reported as deferred outflows of resources was recognized as a reduction of the net pension liability in
the year ended June 30, 2021.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
84
Other amounts reported as deferred outflows of resources related to pensions will be recognized as pension expense
as follows:
2022 2023 2024 2025 Total
Alcorn State University $ 285,984 1,545,699 1,575,740 1,070,920 4,478,343
Delta State University 180,642 976,342 995,318 676,448 2,828,750
Jackson State University 466,422 2,520,937 2,569,932 1,746,602 7,303,893
Mississippi State University 5,382,552 16,269,685 13,684,297 8,254,699 43,591,233
Mississippi University for
Women 155,512 840,519 856,854 582,344 2,435,229
Mississippi Valley State
University 168,605 911,283 928,994 631,372 2,640,254
University of Mississippi 1,309,196 7,075,989 7,213,515 4,902,515 20,501,215
University of Southern
Mississippi 894,575 4,835,029 4,929,001 3,349,892 14,008,497
University of Mississippi
Medical Center 24,423,688 40,008,567 29,394,421 19,829,005 113,655,681
Executive Office 71,341 385,584 393,078 267,147 1,117,150
MCVS 7,780 37,085 37,356 25,490 107,711
Total $ 33,346,297 75,406,719 62,578,506 41,336,434 212,667,956
2022 2023 2024 Total
Alcorn State University $ 1,755,234 1,340,742 408,681 3,504,657
Delta State University 178,228 347,618 342,193 868,039
Jackson State University 9,605,753 3,702,266 1,171,742 14,479,761
Mississippi State University — — — —
Mississippi University for
Women 362,881 109,754 (109,724) 362,911
Mississippi Valley State
University 308,810 338,779 153,424 801,013
University of Mississippi 601,058 1,667,439 480,440 2,748,937
University of Southern
Mississippi 1,407,328 1,548,914 242,275 3,198,517
University of Mississippi
Medical Center — — — —
Executive Office 198,047 128,107 67,961 394,115
MCVS — — — —
Total $ 14,417,339 9,183,619 2,756,992 26,357,950
Deferred outflows of resources, Year Ended June 30
Deferred inflows of resources, Year Ended June 30
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
85
Actuarial Methods and Assumptions
Actuarial valuations involve estimates of the reported amounts and assumptions about the probability of occurrence
of events far into the future. Examples include assumptions about future employment, mortality and future salary
increases. Amounts determined during the valuation process are subject to continual revision as actual results are
compared with past expectations, and new estimates are made about the future. Mississippi state statute requires that
an actuarial experience study be completed at least once in each five-year period. The actuarial assumptions used in
the June 30, 2019 valuation were based on the results of an actuarial experience study for the four-year period ending
June 30, 2018.
The following table provides a summary of the actuarial methods and assumptions used to determine the contribution
rate reported for PERS for the years ended June 30, 2021 and 2020:
Valuation date
Measurement date
Asset valuation method
Actuarial assumptions:
Inflation rate 2.75 % 2.75 %
Salary increases 3.00 3.00
Investment rate of return 7.75 7.75
2020
June 30, 2018
Market value
2021
June 30, 2019
Market value
June 30, 2020
June 30, 2019
Mortality
Mortality rates were based on the PubS. H-2010(B) Retiree Table with the following adjustments: For males, 112%
of male rates from ages 18 to 75 scaled down to 105% for ages 80 to 119. For females, 85% of the female rates from
ages 18 to 65 scaled up to 102% for ages 75 to 119. Mortality rates will be projected generationally using the MP-
2018 projection scale to account for future improvements in life expectancy.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a log-normal distribution
analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension
plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of
arithmetic real rates of return for each major asset class as of June 30, 2021 and 2020 are summarized in the following
table:
Asset class
Domestic Equity 27.00 % 4.90 % 27.00 % 4.90 %
International equity 22.00 4.75 22.00 4.75
Global Equity 12.00 5.00 12.00 5.00
Debt Securities 20.00 0.50 20.00 1.50
Real Estate 10.00 4.00 10.00 4.00
Private equity 8.00 6.25 8.00 6.25
Cash Equivalents 1.00 — 1.00 0.25
100.00 100.00
Year ended June 30, 2020
Target
allocation
Long-term
expected real
rate of return
Year ended June 30, 2021
Target
allocation
Long-term
expected real
rate of return
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
86
Discount Rate
For the years ended June 30, 2021 and 2020, the discount rate used to measure the total pension liability was 7.75%.
The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made
at the current contribution rate (9.00%) and that employer contributions will be made at the current employer
contribution rate (17.40%) for the years ended June 30, 2021 and 2020. Based on those assumptions, the pension
plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.
Sensitivity of Net Pension Liability to Changes in the Discount Rate
The following table presents the IHL System’s proportionate share of the net pension liability of the cost-sharing plan
for 2021 and 2020, calculated using the discount rate of 7.75%, as well as what the IHL System’s net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.75%) or 1-percentage-point
higher (8.75%) than the current rate:
1% Decrease
(6.75%)
Current
discount rate
(7.75%)
1% Increase
(8.75%)
IHL System proportionate share
of net pension liability
2021 $ 4,042,352,998 $ 3,123,010,235 $ 2,364,183,057
2020 3,737,899,008 2,843,514,960 2,105,281,331
Discount Rate Sensitivity
(b) PERS Defined Contribution Plan, the Optional Retirement Plan
The Optional Retirement Plan (ORP) was established by the Mississippi Legislature in 1990 to help attract qualified
and talented institutions of higher learning teaching and administrative faculty in Mississippi. This alternative plan is
structured to be portable and transferable to accommodate teaching and administrative faculty who move from one
state to another throughout their careers. The membership of the ORP is composed of teachers and administrators
appointed or employed on or after July 1, 1990, who elect to participate in ORP and reject membership in PERS. The
ORP provides funds at retirement for employees, and in the event of death, the ORP provides funds for their
beneficiaries through an arrangement by which contributions are made to this plan. The current contribution rate of
both the employee and the IHL System are identical to that of the PERS defined benefit plan. An employee is
automatically a member of PERS unless the employee elects ORP within 30 days of initial employment in an ORP-
eligible position. Once made, the decision is irrevocable.
The ORP uses the accrual basis of accounting. Investments are reported at fair value, based on quoted market prices.
Employees immediately vest in plan contributions upon entering the plan. The IHL System’s contributions to the ORP
for the years ended June 30, 2021 and 2020 were $74.9 million and $78.6 million, respectively, which equaled its
required contribution for the period.
Note 16
Postemployment Health Care and Life Insurance Benefits
Plan Description
In addition to providing pension benefits, the IHL System provides other postemployment benefits (OPEB) such as
health care and life insurance benefits to all eligible retirees and dependents. The State and School Employees’ Life
and Health Insurance Plan (the Plan) is self-insured and financed through premiums collected from employers,
employees, retirees and COBRA participants. The Plan was established by Section 25-15-3 et seq., Mississippi Code
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
87
Ann. (1972) and may be amended only by the State Legislature. The State and School Employees’ Health Insurance
Management Board (the Board) administers the Plan.
The 14-member board is comprised of the Chairman of the Workers’ Compensation Commission; the State Personnel
Director; the Commissioner of Insurance; the Commissioner of Higher Education; the State Superintendent of Public
Education; the Executive Director of the Department of Finance and Administration; the Executive Director of the
Mississippi Community College Board; the Executive Director of the Public Employees’ Retirement System; two
appointees of the Governor; the Chairman of the Senate Insurance Committee, or his designee; the Chairman of the
House of Representatives Insurance Committee, or his designee; the Chairman of the Senate Appropriations
Committee, or his designee; and the Chairman of the House of Representatives’ Appropriations Committee, or his
designee. The Board has a fiduciary responsibility to manage the funds of the Plan. The Plan maintains a budget
approved by the Board.
Membership and Benefits Provided
The Plan provides for Other Postemployment Benefits (OPEB) as a multiple-employer defined benefit OPEB plan for
units of state government, political subdivisions, community colleges and school districts. A trust was created June
28, 2018 for the OPEB Plan and, the Plan is considered a cost-sharing multiple-employer defined benefit OPEB plan.
Benefits of the OPEB Plan consist of an implicit rate subsidy, which is essentially the difference between claims cost
and premiums received for retirees.
Contributions
Employees’ premiums are funded primarily by their employers. Retirees must pay their own premiums, as do active
employees for spouse and dependent medical coverage. The Board has the sole authority for setting life and health
insurance premiums for the Plan. Per Section 12-15-15 (10) Mississippi Code Ann. (1972), a retired employee electing
to purchase retiree life and health insurance will have the full cost of such insurance premium deducted monthly from
his or her state retirement plan check or direct billed for the cost of the premium if the retirement check is insufficient
to pay for the premium. If the Board determines actuarially that the premium paid by the participating retirees
adversely affects the overall cost of the Plan to the State, then the Board may impose a premium surcharge, not to
exceed 15%, upon such participating retired employees who are under the age for Medicare eligibility and who are
initially employed before January 1, 2006. For participating retired employees who are under the age for Medicare
eligibility and who are initially employed on or after January 1, 2006, the Board may impose a premium surcharge in
an amount the Board determines actuarially to cover the full cost of insurance.
Pursuant to the authority granted by Mississippi Statute, the Board has the authority to establish and change premium
rates for the participants, employers and other contributing entities. An outside consulting actuary advises the Board
regarding changes in premium rates. If premium rates are changed, they generally become effective at the beginning
of the next calendar year or next fiscal year.
Plan participants are not subject to supplemental assessment in the event of a premium deficiency. At the time of
premium payment, the risk of loss due to incurred benefit costs is transferred from the participant to the Plan. If the
assets of the Plan were to be exhausted, participants would not be responsible for the Plan’s liabilities.
Information included within this note is based on the certification provided by consulting actuary, Cavanaugh
Macdonald Consulting, LLC.
The audited financial report for the Plan can be found at knowyourbenefits.dfa.ms.gov.
At June 30, 2020 and 2019, the Plan provided health coverage to 320 and 321 employer units, respectively.
Disclosures under GASB Statement No. 75
The disclosures that follow for fiscal years 2021 and 2020 include all disclosures for GASB Statement No. 75 using
the latest valuation report available (June 30, 2020). For fiscal year 2021, the measurement date for the State and
School Employees’ Life and Health Insurance Plan is June 30, 2020. For fiscal year 2020, the measurement date for
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
88
the State and School Employees’ Life and Health Insurance Plan was June 30, 2019. The IHL System is presenting
net OPEB liability as of June 30, 2020 and 2019 for the fiscal years 2021 and 2020 financials, respectively.
Proportionate Share Allocation Methodology
The basis for an employer’s proportion is determined by comparing the employer’s average monthly employees
participating in the Plan with the total average employees participating in the plan in the fiscal year of all employers.
This allocation was utilized because the level of premiums contributed by each employer is the same for any employee
regardless of plan participation elections made by an employee.
OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
At June 30, 2021 and 2020, the IHL System reported a liability of $146.0 million and $157.5 million, respectively,
for its proportionate share of the net OPEB liability (NOL). For fiscal year ending June 30, 2021, the NOL was
measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined
by an actuarial valuation as of that date. At June 30, 2021 and 2020, the IHL System’s proportion was 18.76% and
18.56%, respectively.
For the years ended June 30, 2021 and 2020, the IHL System recognized OPEB expense of $2.9 million and $8.7
million, respectively.
See the following tables for deferred outflows and inflows of resources related to OPEB from the following sources:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
89
Differences
between
expected
and actual
experience
Net
difference
between
projected
and actual
investment
earnings on
OPEB Plan
investments
Changes
of
assumptions
Changes in
proportion and
differences
between
employer OPEB
benefit payments
and
proportionate
share of OPEB
benefit payments
Implicit
rate
subsidy
Total deferred
outflows of
resources
Changes
of
assumptions
Differences
between
expected and
actual
experience
Changes in
proportion and
differences
between
employer OPEB
benefit payments
and
proportionate
share of OPEB
benefit payments
Total deferred
inflows of
resources
Alcorn State University $ 5,462 138 665,306 18,811 127,820 817,537 181,084 745,727 165,465 1,092,276
Delta State University 4,055 102 493,948 79,211 106,990 684,306 134,443 553,655 91,418 779,516
Jackson State University 8,139 205 991,341 — 211,140 1,210,825 269,824 1,111,172 1,077,342 2,458,338
Mississippi State University 39,528 996 4,814,450 916,867 1,074,873 6,846,714 1,310,402 5,396,412 163,778 6,870,592
Mississippi University for
Women 3,086 78 375,901 99,906 81,900 560,871 102,313 421,339 17,360 541,012
Mississippi Valley State
University 3,719 94 452,967 10,347 90,184 557,311 123,289 507,721 181,722 812,732
University of Mississippi 26,523 668 3,230,426 1,038,293 685,968 4,981,878 879,261 3,620,914 — 4,500,175
University of Southern
Mississippi 17,823 449 2,170,814 249,246 464,176 2,902,508 590,854 2,433,218 111,931 3,136,003
University of Mississippi
Medical Center 76,932 1,941 9,370,414 2,650,189 1,928,916 14,028,392 2,550,447 10,503,083 34,761 13,088,291
Executive Office 842 21 102,633 7,296 22,013 132,805 27,935 115,040 52,934 195,909
Total $ 186,109 4,692 22,668,200 5,070,166 4,793,980 32,723,147 6,169,852 25,408,281 1,896,711 33,474,844
2021
Deferred outflows
Deferred inflows
$4.8 million reported as deferred outflows of resources related to OPEB resulting from the IHL System contributions subsequent to the measurement date will be recognized
as a reduction of the NOL in the year ending June 30, 2022.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
90
Differences
between
expected
and actual
experience
Net
difference
between
projected
and actual
investment
earnings on
OPEB Plan
investments
Changes
of
assumptions
Changes in
proportion and
differences
between
employer OPEB
benefit payments
and
proportionate
share of OPEB
benefit payments
Implicit
rate
subsidy
Total deferred
outflows of
resources
Changes
of
assumptions
Differences
between
expected
and actual
experience
Changes in
proportion and
differences
between
employer OPEB
benefit payments
and
proportionate
share of OPEB
benefit payments
Total deferred
inflows of
resources
Alcorn State University $ 7,135 89 351,803 25,779 170,890 555,696 244,695 67,545 158,479 470,719
Delta State University 5,378 67 265,160 104,205 126,875 501,685 184,431 50,910 23,386 258,727
Jackson State University 11,150 139 549,769 — 254,636 815,694 382,390 105,555 934,774 1,422,719
Mississippi State University 49,979 623 2,464,331 358,972 1,236,638 4,110,543 1,714,058 473,147 220,825 2,408,030
Mississippi University for
Women 3,882 48 191,404 52,497 96,554 344,385 133,130 36,749 21,305 191,184
Mississippi Valley State
University 5,012 63 247,137 14,179 116,349 382,740 171,895 47,450 89,486 308,831
University of Mississippi 33,792 421 1,666,189 996,369 829,766 3,526,537 1,158,912 319,905 — 1,478,817
University of Southern
Mississippi 23,094 288 1,138,722 332,726 557,594 2,052,424 792,035 218,633 108,462 1,119,130
University of Mississippi
Medical Center 97,566 1,233 4,810,818 1,971,657 2,406,881 9,288,155 3,346,153 923,676 44,982 4,314,811
Executive Office 1,148 14 56,637 9,497 26,362 93,658 39,393 10,874 27,672 77,939
Total $ 238,136 2,985 11,741,970 3,865,881 5,822,545 21,671,517 8,167,092 2,254,444 1,629,371 12,050,907
2020
Deferred outflows
Deferred inflows
$5.8 million reported as deferred outflows of resources related to OPEB resulting from the IHL System contributions subsequent to the measurement date was recognized
as a reduction of the NOL in the year ended June 30, 2021.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
91
Deferred outflows of resources and deferred inflows of resources are calculated at the plan level and are allocated to
employers based on their proportionate share. Changes in employer proportion, an employer specific deferral, is
amortized over the average remaining service lives of all plan participants, including retirees, determined as of the
beginning of the respective measurement period. The average remaining service life determined as of the beginning
of the June 30, 2020 and 2019 measurement periods was 6.0 years and 6.4 years, respectively. Employers are required
to recognize pension expense based on their proportionate share of collective OPEB expense plus amortization of
employer specific deferrals.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
2022 2023 2024 2025 2026 Total
Alcorn State University $ (101,404) (101,404) (91,923) (50,800) (57,028) (402,559)
Delta State University (45,325) (45,325) (39,204) (25,627) (46,719) (202,200)
Jackson State University (368,833) (368,833) (346,862) (214,055) (160,070) (1,458,653)
Mississippi State University (367,807) (367,807) (271,115) 53,966 (145,988) (1,098,751)
Mississippi University for
Women (18,708) (18,708) (13,177) 1,380 (12,828) (62,041)
Mississippi Valley State
University (83,612) (83,612) (76,881) (47,556) (53,944) (345,605)
University of Mississippi (44,206) (44,206) (16,745) 36,336 (135,444) (204,265)
University of Southern
Mississippi (167,715) (167,715) (144,773) (70,600) (146,868) (697,671)
University of Mississippi
Medical Center (399,933) (399,933) (247,780) 290,675 (231,844) (988,815)
Executive Office (21,749) (21,749) (19,086) (9,829) (12,704) (85,117)
Total $ (1,619,292) (1,619,292) (1,267,546) (36,110) (1,003,437) (5,545,677)
Deferred outflows (inflows) of resources year ended June 30
Actuarial Methods and Assumptions
The following table provides a summary of the actuarial methods and assumptions used to determine the discount rate
reported for OPEB for the years ended June 30, 2021 and 2020:
Valuation date
Measurement date
Actuarial assumptions:
Cost method Entry age normal Entry age normal
Inflation rate 2.75 % 2.75 %
Long-term expected rate of return 4.50 % 3.50 %
Discount rate 2.19 % 3.50 %
Projected cash flows N/A N/A
Projected salary increases 3.00% - 18.25% 3.00% - 18.25%
Healthcare cost trend rates
2020
2021
June 30, 2020
June 30, 2020
June 30, 2019
June 30, 2019
7.00% decreasing
to 4.75% by 2028
7.00% decreasing
to 4.50% by 2030
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
92
Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to continual revision, as actual
results are compared to past expectations and new estimates are made about the future.
Mortality
Mortality rates were based on the PubS H-2010(B) Retiree Table with the following adjustments: For males, 112% of
male rates from ages 18 to 75 scaled down to 105% for ages 80 to 119. For females, 85% of the female rates from
ages 18 to 65 scaled up to 102% for ages 75 to 119. Mortality rates will be projected generationally using the MP-
2018 projection scale to account for future improvements in life expectancy.
Discount Rate
For the years ended June 30, 2021 and 2020 the discount rates used to measure the total OPEB liability were 2.19%
and 3.50%, respectively. The discount rate is based on an average of the Bond Buyer General Obligation 20-year
Municipal Bond Index Rates during the month of June published at the end of each week by the Bond Buyer.
Long-term Expected Rate of Return
At June 30, 2021 and 2020, the long-term expected rate of return, net of OPEB plan investment expense, including
inflation was 4.50% and 3.50%, respectively.
Sensitivity of Net OPEB Liability to Changes in the Discount Rate
The following table presents the IHL System’s proportionate share of the NOL for 2021 and 2020, calculated using
the discount rate of 2.19% and 3.50%, respectively, as well as what the IHL System’s NOL would be if it were
calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:
1% Decrease
(1.19%)
Current
discount rate
(2.19%)
1% Increase
(3.19%)
IHL System proportionate share
of net OPEB liability
2021 $ 161,342,421 $ 146,002,208 $ 132,844,515
1% Decrease
(2.50%)
Current
discount rate
(3.50%)
1% Increase
(4.50%)
IHL System proportionate share
of net OPEB liability
2020 $ 174,953,940 $ 157,499,028 $ 142,564,721
Discount Rate Sensitivity
Discount Rate Sensitivity
Sensitivity of Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following table presents the NOL of the IHL System, calculated using the health care cost trend rates, as well as
what the IHL System’s NOL would be if it were calculated using a health care cost trend rate that is 1-percentage-
point lower or 1-percentage-point higher than the current rate:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
93
1% Decrease
Current
discount rate
1% Increase
IHL System proportionate share
of net OPEB liability
2021 $ 134,810,703 $ 146,002,208 $ 158,681,689
2020 145,947,120 157,499,028 170,585,386
Health Care Cost Trend Rates Sensitivity
Non-cash Impact on Fringe Benefits Expense
For the years ended June 30, 2021 and 2020, the non-cash impact of GASB Statement No. 68 on fringe benefits
expense was $120 million and $108 million, respectively. For the years ended June 30, 2021 and 2020, the non-cash
impact of GASB Statement No. 75 on fringe benefits expense was $(1,124,513) and $3,374,644, respectively.
Year ended June 30, 2021
Total fringe
benefits expense
Non-cash change
in net pension
liability and
related deferred
inflows and
outflows due to
GASB 68
Non-cash change
in net OPEB
liability and
related deferred
inflows and
outflows due to
GASB 75
Fringe benefits
expense excluding
non-cash impact of
GASB 68 and 75
Alcorn State University $ 11,594,797 (1,457,302) 74,000 10,211,495
Delta State University 10,459,803 (1,552,884) 37,071 8,943,990
Jackson State University 15,247,273 4,747,609 348,680 20,343,562
Mississippi State University 151,678,487 (22,604,925) 319,406 129,392,968
Mississippi University for Women 8,299,614 (1,204,506) 12,905 7,108,013
Mississippi Valley State University 8,449,045 (1,608,096) 68,113 6,909,062
University of Mississippi 83,229,115 (13,479,863) (23,526) 69,725,726
University of Southern Mississippi 58,146,533 (6,766,677) 125,412 51,505,268
University of Mississippi Medical Center 281,459,857 (75,500,499) 142,638 206,101,996
Executive Office 2,662,056 (491,246) 19,814 2,190,624
MCVS 285,618 (91,838) — 193,780
Totals $ 631,512,198 (120,010,227) 1,124,513 512,626,484
Year ended June 30, 2020
Total fringe
benefits expense
Non-cash change
in net pension
liability and
related deferred
inflows and
outflows due to
GASB 68
Non-cash change
in net OPEB
liability and
related deferred
inflows and
outflows due to
GASB 75
Fringe benefits
expense excluding
non-cash impact of
GASB 68 and 75
Alcorn State University $ 12,213,941 (1,120,383) (66,394) 11,027,164
Delta State University 10,820,419 (1,862,529) (90,992) 8,866,898
Jackson State University 18,698,609 1,693,252 43,206 20,435,067
Mississippi State University 143,615,846 (15,647,563) (605,552) 127,362,731
Mississippi University for Women 7,895,831 (810,992) (54,316) 7,030,523
Mississippi Valley State University 9,066,147 (1,535,553) (53,152) 7,477,442
University of Mississippi 84,671,830 (13,109,388) (646,334) 70,916,108
University of Southern Mississippi 62,226,425 (8,136,976) (352,687) 53,736,762
University of Mississippi Medical Center 287,545,684 (67,237,973) (1,537,292) 218,770,419
Executive Office 2,472,096 (138,972) (11,131) 2,321,993
MCVS 317,565 (117,270) — 200,295
Totals $ 639,544,393 (108,024,347) (3,374,644) 528,145,402
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
94
Note 17
Self-Insured Workers’ Compensation Fund
The IHL System participates in the State Institutions of Higher Learning Self-Insured Workers’ Compensation Fund
(the WC Fund). The WC Fund provides a mechanism for the institutions to fund and budget for the costs of providing
worker compensation benefits to eligible employees. The WC Fund does not pay benefits directly to employees. Funds
are set aside in trust, and a third-party administrator is utilized to distribute the benefits to eligible employees. Total
assets and liabilities of the WC Fund approximated $31.8 million and $17.4 million at June 30, 2021, respectively,
and $29.3 million and $20.3 million at June 30, 2020, respectively, and are included in the statements of net position.
A professionally licensed actuarial firm was contracted to establish a liability for both reported and unreported insured
events, which includes estimates of future payments of losses. The difference between the assets and liabilities of the
fund is not expected to impact the WC Fund’s ability to pay claims.
In order to minimize the amount of risk and in accordance with self-insurance general practices, the WC Fund
purchases excess loss insurance to cover risks exceeding $1,000,000 per occurrence. Excess loss insurance premiums
for the years ended June 30, 2021 and 2020 were approximately $360,000 and $345,000, respectively. Excess loss
insurance does not discharge the WC Fund from its primary liability to cover the IHL System’s claims. Consequently,
failure of the insurer to honor its obligation could result in losses to the WC Fund.
The following represents changes in the unpaid claims liabilities for the WC Fund for the years ended June 30, 2021,
2020, and 2019 (in thousands):
2021 2020 2019
Unpaid claim liability at beginning of year $ 20,067 21,700 20,992
Incurred claims:
Insured events of the current 5,100 7,801 8,304
Decrease in provisions for
insured events of prior years (3,250) (4,057) (2,403)
Total incurred claims 1,850 3,744 5,901
Payments:
Attributable to insured events of the current year 1,063 1,420 1,579
Attributable to insured events of the prior year 3,577 3,957 3,614
Total payments 4,640 5,377 5,193
Unpaid claim liability at end of year $ 17,277 20,067 21,700
Total accrued claims, included in long-term liabilities, are presented at their present value using a discount rate of
3.0%. The discount approximated $2.0 million and $2.2 million as of June 30, 2021 and 2020, respectively.
Note 18
Unemployment Trust Fund
The IHL System participates in a self-funded Unemployment Trust Fund (the Unemployment Fund). The
Unemployment Fund exists to provide a mechanism for the IHL System to fund and budget for the costs of providing
unemployment benefits to eligible former employees. The Unemployment Fund does not pay benefits directly to
former employees. Rather, it reimburses the Mississippi Department of Employment Security Commission for benefits
it pays directly to former IHL System employees. Total assets and liabilities of the Unemployment Fund approximated
$10.4 million and $4.3 million at June 30, 2021, respectively, and $10.1 million and $4.2 million at June 30, 2020,
respectively, and are included in the statements of net position.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
95
A professionally licensed actuarial firm was contracted to perform an actuarial analysis of the Unemployment Fund
as of June 30, 2021. The actuaries concluded that the fund’s actual assets at June 30, 2021 exceeded the recommended
minimum fund balance. The recommended fund balance at June 30, 2021 is $4.4 million. Actual fund assets equaled
$10.4 million at June 30, 2021. The fiscal year 2022 assessment level was set at $1.5 million. Future assessments are
recommended to be set at $1.5 million for fiscal years 2023 through 2025. These facts will be considered by the IHL
System when determining future funding rates.
Note 19
Tort Liability Fund and Other Contingencies
The IHL System participates in the State Institutions of Higher Learning Tort Liability Fund (the IHL Tort Fund). In
accordance with Section 11-46-1, et seq., Mississippi Code Annotated (1972), the Mississippi Tort Claims Board has
authorized the Board to establish a fund in order to self-insure a certain portion of its liability under the Mississippi
Tort Claims Act and professional liability claims. The IHL Board established the IHL Tort Fund to provide self-
insurance.
Effective July 1, 1993, Mississippi statute permitted tort claims to be filed against public institutions. A maximum
limit of liability of $500,000 per occurrence is currently permissible.
A professionally licensed actuarial firm was contracted to perform an actuarial analysis of the IHL Tort Fund as of
June 30, 2021. Total assets and liabilities related to this activity approximated $18.5 million and $10.1 million at June
30, 2021, respectively, and $17.9 million and $10.7 million at June 30, 2020, respectively, and are included in the
statements of net position.
The following represents changes in the unpaid claims liabilities for the IHL Tort Fund during the years ended June
30, 2021, 2020, and 2019 (in thousands):
2021 2020 2019
Unpaid claim liability at beginning of year $ 10,560 10,912 9,694
Incurred claims:
Insured events of the current 4,307 3,354 3,628
Decrease in provisions for
insured events of prior years (3,440) (1,495) (668)
Total incurred claims 867 1,859 2,960
Payments:
Attributable to insured events of the current year 296 65 205
Attributable to insured events of the prior year 1,131 2,146 1,537
Total payments 1,427 2,211 1,742
Unpaid claim liability at end of year $ 10,000 10,560 10,912
Total accrued claims, included in long-term liabilities, are presented at their present value using a discount rate of
3.0%. The discount approximated $862,000 and $932,000 as of June 30, 2021 and 2020, respectively.
In addition to claims covered by the IHL Tort Fund and the UMMC Tort Fund (described more fully below), the IHL
System is defendant in various other legal matters occurring in the normal course of business activities. Management,
with the advice of legal counsel, is of the opinion that the ultimate resolution of these matters will not have a material
adverse impact on the IHL System’s financial statements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
96
Note 20
UMMC Tort Claims Fund
The UMMC participates in the University of Mississippi Medical Center Tort Claims Fund (UMMC Tort Claims
Fund). In accordance with Section 11-46-1, et seq., Mississippi Code Annotated (1972), the Mississippi Tort Claims
Board has authorized the Board of Trustees of the IHL System to establish a fund to self-insure a certain portion of its
liability under the Mississippi Tort Claims Act.
Effective July 1, 1993, Mississippi statute permitted tort claims to be filed against public institutions. A maximum
limit of liability of $500,000 per occurrence is currently permissible.
The Board of Trustees of Higher Learning has established a Medical Center Tort Claims fund to pay claims up to the
maximum liability limits described above. Losses from professional and tort liability claims of the Medical Center are
the responsibility of the Medical Center Tort Claims Fund.
Total assets and liabilities related to this activity approximated $49.5 million and $31.4 million at June 30, 2021,
respectively, and approximated $48.1 million and $31.2 million at June 30, 2020, respectively, and are included in the
statements of net position.
A professionally licensed actuarial firm was contracted to perform an actuarial analysis to establish a liability for both
reported and unreported insured events, which includes estimates of future payments of losses.
The following represents changes in the unpaid claims liabilities for the UMMC Tort Claims Fund for the years ended
June 30, 2021, 2020 and 2019 (in thousands):
2021 2020 2019
Unpaid claim liability at beginning of year $ 31,198 35,491 35,888
Incurred claims:
Insured events of the current 6,845 5,567 8,970
Decrease in provisions for
insured events of prior years (4,112) (6,925) (5,975)
Total incurred claims 2,733 (1,358) 2,995
Payments:
Attributable to insured events of the current year 22 16 504
Attributable to insured events of the prior year 2,559 2,919 2,888
Total payments 2,581 2,935 3,392
Unpaid claim liability at end of year $ 31,350 31,198 35,491
At June 30, 2021 and 2020, unpaid claims of $34.5 million and $34.4 million, respectively, are presented at their net
present value of $31.4 million and $31.2 million, respectively, using a discount rate of 4%.
Note 21
Subsequent Events
In December 2021, the Jackson State University Educational Building Corporation (JSU EBC) issued $42,380,000 of
Series 2021A taxable convertible revenue refunding bonds and $6,295,000 of Series 2021B taxable revenue refunding
bonds to refund a portion of the outstanding maturities of the $57,595,000 Series 2015A revenue bonds and $6,000,000
Series 2017 revenue refunding bonds.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
97
Note 22
Significant Disclosures for the Discretely Presented Component Unit of the IHL System – Mississippi State
University Foundation, Inc.
(a) Nature of Organization
Mississippi State University Foundation, Inc. (MSUF) is a not-for-profit entity established to solicit and manage funds
for the benefit of MSU. MSUF also manages funds for affiliates of the University, including Mississippi State
University Alumni Association, Inc. and The Bulldog Club, Inc.
(b) Significant Accounting Policies
Basis of Accounting
The MSUF consolidated financial statements include the foundation; Maroon Air, LLC; 107 Muldrow Properties,
LLC; 111 Muldrow Properties, LLC; 800-804 University Drive Properties, LLC; 806 University Drive Apartments,
LLC; and the Mississippi State Investment Pool in which the foundation has a controlling financial interest. The
consolidated financial statements, which are presented on the accrual basis of accounting, have been prepared to
present balances and transactions according to the existence or absence of donor-imposed restrictions. Accordingly,
net assets and changes therein are classified and reported as follows:
Net assets with donor restrictions – net assets subject to donor-imposed stipulations that may or will be met either by
actions of MSUF and/or the passage of time. Net assets in this class include unconditional gifts for restricted purposes
and donor-restricted endowment funds.
Generally, the donor of these assets permits the foundation to use all or part of the income earned on related
investments for general or specific purposes in support of the university.
Net assets without donor restrictions – net assets that represent resources generated from operations or that are not
subject to donor-imposed stipulations. Net assets without donor restrictions include contributions designated to a
particular college or unit for which the use or purpose is unrestricted.
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited
by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and
losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor
restrictions unless their use is restricted by explicit donor stipulations or by law. Expirations of restrictions on net
assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported
as reclassifications between the applicable classes of net assets.
Contributions, including unconditional promises to give, are recognized as revenues in the period received.
Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on
which they depend are substantially met. Contributions of assets other than cash are recorded at their estimated fair
value. Contributions of intellectual property are based on its estimated fair value, considering the characteristics
specific to the assets and estimated usage during the term of the agreement. Contributed goods and services are
recorded as revenues and expenses in the consolidated statements of activities at estimated fair value.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenditures during the reporting period. Actual results could differ from those estimates.
MSUF’s investments are invested in various types of investment securities and in various companies within various
markets. Investment securities are exposed to several risks, such as interest rate, market and credit risks. Due to the
level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
98
of investment securities will occur in the near term and that such changes could materially affect the amounts reported
in MSUF’s consolidated financial statements.
Investments
The overall investment objective of MSUF is to invest its assets in a prudent manner that will achieve a long-term rate
of return sufficient to fund donor-designated directives and maintain the inflation-adjusted impact of each donor
restricted fund. Beginning July 1, 2017, investment decisions have been delegated to Perella Weinberg Partners
Capital Management LP, the foundation’s outsourced chief investment officer that operates under the brand name,
“Agility”. Agility executes investment decisions in accordance with the foundation’s approved investment policy.
Investments are reported at estimated fair value. If an investment is held directly by MSUF and an active market with
quoted prices exists, the market price of an identical security is used as reported fair value. Reported fair values for
shares in mutual funds registered with the U.S. Securities and Exchange Commission are based on share prices
reported by the funds as of the last business day of the fiscal year. Fixed income securities are based on quoted market
prices or other observable inputs such as quoted prices for similar assets or inputs corroborated by observable market
data. MSUF’s interests in alternative investment funds are generally reported at the net asset value (NAV) reported
by the fund managers, which is used as a practical expedient to estimate the fair value of interest therein, unless it is
probable that all or a portion of the investment will be sold for an amount different from NAV. As of June 30, 2021
and 2020, MSUF had no plans or intentions to sell investments at amounts different from NAV. Properties held for
investment are reported at estimated fair value based on periodic appraisals conducted by third-party appraisers who
utilize the cost, sales comparison and income capitalization approaches to estimate the fair value of the investments.
MSUF considers recent comparables, among other things, to adjust for any changes in fair value between the most
recent appraisal date and year-end.
Mississippi State Investment Pool
MSUF, MSU, the MSU Alumni Association, and The Bulldog Club, Inc. are participants in a joint venture, the
Mississippi State Investment Pool (MSIP), whereby investable assets are pooled for investment purposes. The MSUF
is the investment pool’s managing member and maintains separate accounts for each participant. Investment income,
gains and losses, and expenses of the MSIP are allocated to each participant based on their share of ownership of the
MSIP. Due to MSUF’s controlling financial interest in the MSIP of approximately 92% and 91% as of June 30, 2021
and 2020, respectively, the foundation has consolidated the MSIP, reflecting the noncontrolling interests of the other
participants in its consolidated financial statements.
(c) Pledges Receivable, Net
All unconditional promises to give are recorded at their estimated realizable value on a discounted basis using rates
commensurate with the risks involved. Allowance is made for uncollectible pledges based upon management’s
judgment and analysis of specific accounts, past collection experience, and other relevant factors.
Pledges receivable, net, are summarized as follows at June 30, 2021 and 2020:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
99
2021 2020
Unconditional promises expected to be collected in:
One year $ 12,246,742 11,188,945
two to five years 20,757,283 21,805,847
More than five years 14,003,510 5,888,251
47,007,535 38,883,043
Present value discounts (rates ranging from 0.3% to 5.0%) (5,358,965) (5,031,064)
41,648,570 33,851,979
Allowances for uncollectible pledges (886,603) (965,036)
$ 40,761,967 32,886,943
(d) Investments
Investments are summarized as follows as of June 30, 2021 and 2020:
2021 2020
Short-term investments $ 4,237,024 8,685,646
Agility Comprehensive Solutions Fund 578,730,452 400,156,048
Global fixed income 4,597,936 4,020,077
Global equities 9,375,047 7,874,380
Real assets 24,558,967 23,686,055
Absolute return strategies 145,128 138,669
Private capital 34,932,165 21,856,293
Contributed properties held for investment 30,531,907 29,613,054
Cash-surrender value of life insurance 3,231,056 3,225,348
$ 690,339,682 499,255,570
Prior to March 2020, the MSIP had invested in a limited partnership interest in the Agility Comprehensive Solutions
Feeder Fund LP, a Delaware limited partnership (the Feeder Fund). The Feeder Fund invested all, or substantially all,
of its investable assets on an investment-by-investment basis, either (i) directly through a “master fund/feeder fund”
structure, or (ii) indirectly through Agility Comprehensive Solutions Offshore Fund Ltd., a Cayman Islands exempted
company, in Agility Comprehensive Solutions Fund LP., a Delaware limited partnership (the Master Fund). In March
2020, the MSIP transferred its entire interest in the Feeder Fund to a direct investment in the Master Fund. Perella
Weinberg Partners Agility Comprehensive Solutions Fund GP LP serves as general partner of both the Feeder Fund
and the Master Fund. The Master Fund invests in five broad asset classes with approximate allocation percentages at
June 30, 2021 and 2020:
Global equities 70 % 65 %
Global fixed income 5 8
Absolute return strategies 13 15
Real assets 5 7
Private capital 7 5
2020
2021
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
100
MSUF has entered into various split interest agreements, including charitable remainder unitrusts and charitable gift
annuities, whereby MSUF serves as trustee. The assets held under these split interest agreements are included in
investments at June 30, 2021 and 2020 with a fair value of $14.2 million and $12.0 million, respectively.
The following schedule summarizes net investment income in the consolidated statements of activities for the years
ended June 30, 2021 and 2020:
2021 2020
Dividends and interest, net of expenses $ 3,088,958 2,802,490
Net realized and unrealized gains (losses) 173,218,108 (1,294,827)
$ 176,307,066 1,507,663
Fair Value Measurements
ASC Topic 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
▪ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are observable at the
measurement date.
▪ Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or
liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated
by observable market data; and
▪ Level 3: Significant unobservable inputs for the asset or liability that reflects the reporting entity’s own estimates
about the assumptions that market participants would use in pricing the asset or liability. These assumptions are
based on audited financial statements provided by the general partner of the investment combined with additional
third-party due diligence.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest
level input that is significant to the fair value measurement in its entirety. In accordance with Subtopic 820-10, certain
investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have
not been classified in the fair value hierarchy. The fair value amounts presented in the fair value hierarchy table are
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying statement
of financial position.
The following table summarizes MSUF’s financial instruments by major category in the fair value hierarchy as of
June 30, 2021 and 2020:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
101
2021
Level 1 Level 2 Level 3
Investments
at NAV
Total
Short-term investments $ 4,237,024 — — — 4,237,024
Agility-Comprehensive Solutions
Fund (1) — — — 578,730,452 578,730,452
Global fixed income:
Interest-rate sensitive 4,597,936 — — — 4,597,936
Global equities:
Domestic 9,375,047 — — — 9,375,047
Real assets:
Real estate funds (2) — — — 11,516,176 11,516,176
Natural resources (3) — — — 13,042,791 13,042,791
Total real assets — — — 24,558,967 24,558,967
Absolute return strategies (4) — — — 145,128 145,128
Private capital (2) — — — 34,932,165 34,932,165
Contributed properties held for
investment (5) — — 30,531,907 — 30,531,907
Cash surrender value of life
insurance (6) — 3,231,056 — — 3,231,056
Total investments $ 18,210,007 3,231,056 30,531,907 638,366,712 690,339,682
Present value of amounts due
from externally managed trusts $ — — 59,215,668 — 59,215,668
2020
Level 1 Level 2 Level 3
Investments
at NAV
Total
Short-term investments $ 8,685,646 — — — 8,685,646
Agility-Comprehensive Solutions
Fund (1) — — — 400,156,048 400,156,048
Global fixed income:
Interest-rate sensitive 4,020,077 — — — 4,020,077
Global equities:
Domestic 7,874,380 — — — 7,874,380
Real assets:
Real estate funds (2) — — — 15,551,744 15,551,744
Natural resources (3) — — — 8,134,311 8,134,311
Total real assets — — — 23,686,055 23,686,055
Absolute return strategies (4) — — — 138,669 138,669
Private capital (2) — — — 21,856,293 21,856,293
Contributed properties held for
investment (5) — — 29,613,054 — 29,613,054
Cash surrender value of life
insurance (6) — 3,225,348 — — 3,225,348
Total investments $ 20,580,103 3,225,348 29,613,054 445,837,065 499,255,570
Present value of amounts due
from externally managed trusts $ — — 49,559,753 — 49,559,753
(1) The master fund’s terms allow for 5-day notice withdrawals at any month-end totaling up to 10% of its account balance at the fund’s
previous fiscal yearend, (plus any capital contributions to the fund during the current year). In addition, the MSIP may make withdrawals
from its capital account, of up to 100% of its Agility Global Equities, Agility Fixed Income, and Agility Real Asset holdings, as well as
25% of its Agility Absolute Return holdings, as of any fiscal quarter end, with at least one quarter’s prior written notice to the general
partner. Further, approximately $43.1 million and $19.0 million of MSIP’s investment in the Fund is considered illiquid at June 30,
2021 and 2020, respectively, with up to a 10-year lockup period and 1 to 3-year extensions.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
102
(2) These funds have initial 10-year terms or 12-year terms, unless extended or dissolved sooner in accordance with the limited partnership
agreements. Future commitments to these funds approximate $8,771,000 and $11,274,000 at June 30, 2021 and 2020, respectively.
Private capital and real estate funds are generally made through limited partnerships. Under the terms of such agreements, the MSIP
may be required to provide additional funding when capital or liquidity calls are made by fund managers. These partnerships have a
limited existence, and they may provide for annual extensions for the purpose of disposing portfolio positions and returning capital to
investors. However, depending on market conditions, the inability to execute the fund’s strategy, or other factors, a manager may extend
the terms of a fund beyond its originally anticipated existence or may wind the fund down prematurely. The MSUF cannot anticipate
such changes because they generally arise from unforeseeable events, but should they occur they could reduce liquidity or originally
anticipated investment returns. Accordingly, the timing and amount of future capital or liquidity calls in any particular future year are
uncertain.
(3) The MSIP invests in three natural resource investments at June 30, 2021 and 2020, respectively, which have terms ending in 2023, 2026
and 2027. Investments with lockup periods are subject to one or more one to two-year extensions. Future commitments to these funds
approximate $5,435,000 and $7,113,500 at June 30, 2021 and 2020, respectively.
(4) Generally, MSIP’s investments in absolute return strategies (or hedge funds) allow early redemption for specified fees. The t erms and
conditions upon which an investor may redeem an investment vary, usually with the majority requiring 60 days to 12 months notice
after the initial lock up period, which may be from one to three years. At June 30, 2021 and 2020, the MSUF had no absolute return
strategy investments for which an otherwise redeemable investment was not redeemable.
(5) Bulldog Forest properties totaling approximately $27,877,708 and $27,414,855 at June 30, 2021 and 2020, respectively, may be held in
perpetuity or liquidated at the Foundation’s discretion. Other properties are for immediate sale.
(6) The Foundation currently has no plans to surrender these policies prior to maturity, but cash would be realized in a minimal amount of
time if an insurance policy is canceled.
The following table presents MSUF’s activities for the years ended June 30, 2021 and 2020 for contributed properties
held for investments classified in Level 3:
2021 2020
Balance, beginning of year $ 29,613,054 34,594,669
Acquisitions 2,254,000 1,976,062
Dispositions (2,111,745) (6,597,267)
Net realized and unrealized gains (losses) 776,598 (360,410)
Balance, end of year $ 30,531,907 29,613,054
For the years ended June 30, 2021 and 2020, the changes in present value of amounts due from externally managed
trusts classified as Level 3 are as follows:
2021 2020
Balance, beginning of year $ 49,559,753 50,787,293
Change in valuation 9,655,915 (1,227,540)
Balance, end of year $ 59,215,668 49,559,753
(e) Net Assets Without Donor Restrictions
Net assets attributable to the foundation without donor restrictions as of June 30, 2021 and 2020 are as follows:
2021 2020
Spendable funds $ 21,929,064 17,389,112
Quasi-endowment funds 23,294,756 23,550,070
Net investment in land, buildings and equipment 10,216,461 9,978,892
$ 55,440,281 50,918,074
Quasi-endowment funds are those funds held by the Foundation to function as endowments for the benefit of MSU.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
103
(f) Net Assets With Donor Restrictions
Net assets with donor restrictions are restricted for the following purposes as of June 30, 2021 and 2020:
2021 2020
Subject to expenditure for specified purpose:
General college support $ 31,252,606 10,358,473
Student financial aid 30,987,454 12,407,071
Research 456,627 148,719
Faculty and staff support 839,585 281,457
Facilities (1,088,865) (782,342)
Other 2,283,817 453,797
64,731,224 22,867,175
Subject to the passage of time and specified purpose:
Charitable remainder trusts, cash surrender value of life
insurance, gift annuities and other 13,386,255 11,485,256
Pledges receivable restricted by donors 22,574,911 14,559,624
35,961,166 26,044,880
Donor restricted endowments subject to spending policy and
appropriation to support the following purposes (including net
accumulated earnings of approximately $136,476,000 and
$37,065,000 at June 30, 2021 and 2020, respectively):
Subject to endowment spending policy and appropriation:
General college support 130,426,561 99,832,564
Student financial aid 275,154,714 191,775,536
Research 18,809,455 15,892,611
Faculty and staff support 68,899,121 54,966,929
Facilities 8,749,995 7,558,576
Other 8,543,437 7,704,922
510,583,283 377,731,138
Charitable remainder trusts, gift annuities and other 55,521,361 46,177,250
Pledges receivable restricted to endowment by donors 18,187,056 18,327,319
$ 684,984,090 491,147,762
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
104
(g) Endowment Funds
The State of Mississippi adopted the UPMIFA effective July 1, 2012. The foundation’s board of directors has
determined its donor agreements provide for the preservation of the fair value of the original gift as of the date of the
gift. As a result, the foundation segregates within the net asset class with donor restrictions, the original gift amount
and amounts required to be retained by donor separate from the portion subject to appropriation.
Endowment net asset composition by type of fund as of June 30, 2021 and 2020 is as follows:
Without donor
restrictions
With donor
restrictions
Total
Donor restricted endowment funds $ — 510,583,283 510,583,283
Board-designated funds 23,294,756 — 23,294,756
Total $ 23,294,756 510,583,283 533,878,039
Without donor
restrictions
With donor
restrictions
Total
Donor restricted endowment funds $ — 377,731,138 377,731,138
Board-designated funds 23,550,070 — 23,550,070
Total $ 23,550,070 377,731,138 401,281,208
2020
2021
Changes in endowment net assets for the fiscal years ended June 30, 2021 and 2020 are as follows:
Without
donor
restrictions
With
donor
restrictions
Total
Endowment net assets, June 30, 2019 $ 19,658,949 375,776,324 395,435,273
Investment returns, net (719,153) (907,135) (1,626,288)
Contributions 9,917 15,394,268 15,404,185
Appropriation of endowment
assets for expenditure (911,943) (12,873,258) (13,785,201)
Other 5,512,300 340,939 5,853,239
Endowment net assets, June 30, 2020 23,550,070 377,731,138 401,281,208
Investment returns, net (47,368) 109,963,412 109,916,044
Contributions 57,697 31,889,190 31,946,887
Appropriation of endowment
assets for expenditure (987,485) (11,343,060) (12,330,545)
Other 721,842 2,342,603 3,064,445
Endowment net assets, June 30, 2021 $ 23,294,756 510,583,283 533,878,039
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
105
(h) Funds with Deficiencies
As a result of market declines for certain recently established endowments, the fair value of certain donor-restricted
endowments was less than the historical cost value (original gift/book value) of such funds (underwater) by $225,008
and $1,903,505 at June 30, 2021 and 2020, respectively. These endowments had an original gift value of
approximately $5.0 million and $55.4 million at June 30, 2021 and 2020, respectively.
Note 23
Significant Disclosures for the Discretely Presented Component Unit of the IHL System – University of
Mississippi Foundation
(a) Nature of Organization
The University of Mississippi Foundation (UMF) is a nonprofit, nonstock corporation formed for the benefit of The
University of Mississippi (UM). UMF promotes, encourages, and assists educational, scientific, literary, research,
and service activities of UM and its affiliates.
(b) Significant Accounting Policies
Basis of Accounting
The UMF financial statements are presented on the accrual basis of accounting and have been prepared to present
balances and transactions according to the existence or absence of donor-imposed restrictions. Accordingly, net assets
and changes therein are classified and recorded as follows:
Net assets with donor restrictions – consist of contributions that have been restricted by the donor for specific purposes
or are time restricted, including contributions that the donor stipulate the resources be maintained in perpetuity, but
permit UMF to use or expend part or all of the income derived from the donated assets for either specified or
unspecified purposes.
Net assets without donor restrictions – represents funds that are available for support of the operations of UMF and
that are not subject to donor stipulation.
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited
by donor-imposed restrictions. UMF considers donor contributions to the various university schools and departments
to be included in net assets with donor restrictions as those university units have authority over expenditures. Expenses
are reported as decreases in net assets without donor restrictions. When a donor restriction expires or the stated purpose
is accomplished, net assets are reclassified as applicable in the statements of activities as net assets released from
restriction.
Board-designated net assets are net assets without donor restrictions that are used only for the specific purpose passed
by board resolution. Changes to designations require a subsequent board resolution. The President/CEO and other
staff of UMF may not change the purpose of any board-designated funds without the consent of the board. These net
assets are designated for providing a general operating fund reserve and charitable gift annuity reserve.
Use of Estimates
The UMF prepares its financial statements in accordance with U.S. generally accepted accounting principles, which
require that management make estimates and assumptions that affect the reported amounts of assets and liabilities and
revenues and expenses. Such estimates include the present value discount rates applied to the pledges receivable and
liabilities under remainder trusts, allowance for uncollectible pledges, fair market values of certain investments
including real estate, partnership and member interests and depreciation of property and equipment. Actual results
could differ significantly from those estimates.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
106
UMF’s investments are primarily invested in various types of investment securities within many financial markets.
Investment securities are exposed to several risks, such as interest rate, market, and credit risks. Due to the level of
risk associated with certain investment securities, it is reasonably possible that changes in the fair value of investment
securities will occur in the near term and that such changes could materially affect the amounts reported in the financial
statements.
Investments
Investments are recorded at fair value. The fair values of all investments other than real estate and partnership and
membership interests (which includes pooled investment funds) are based on quoted market prices and other
observable inputs such as quoted prices for similar assets, quoted prices in inactive markets or inputs corroborated by
observable market data. UMF’s partnership and member interests are generally reported at the net asset value (NAV)
reported by the fund managers, which is used as a practical expedient to estimate the fair value of the foundation’s
interest therein, unless it is probable that all or a portion of the investment will be sold for an amount different from
NAV. As of June 30, 2021 and 2020, UMF had no plans or intentions to sell investments at amounts different from
NAV. UMF’s real estate investments are initially recognized at fair value based on appraised values at the date of
receipt and are subsequently carried at fair value. Both realized and unrealized gains and losses are classified in the
accompanying statements of activities based on restrictions put in place by the donor.
(c) Pledges Receivable, Net
UMF obtains pledges through fund-raising projects in support of various activities. All pledges are classified as net
assets with donor restrictions. A summary of pledges receivable as of June 30, 2021 and 2020 is as follows:
2021 2020
Unconditional promises expected to be collected in:
One year $ 12,946,355 16,221,488
Two to five years 31,298,654 38,510,914
More than five years 43,079,466 41,795,150
87,324,475 96,527,552
Present value discounts (rates ranging
from 0.73% to 3.2%) (10,765,116) (13,004,229)
76,559,359 83,523,323
Allowances for uncollectible pledges (2,940,129) (2,681,798)
$ 73,619,230 80,841,525
(d) Investments
Investments, aggregated by investment strategy, consist of the following at June 30, 2021 and 2020:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
107
2021 2020
Investment strategy:
Fixed income:
U.S. government securities $ 3,294,335 3,446,113
Corporate bonds 28,591,118 25,136,691
Certificates of deposit 544,497 533,464
Other fixed income securities 27,911,175 28,451,332
Total fixed income 60,341,125 57,567,600
Equities:
Common stocks 29,197,641 28,407,477
International common stock funds 928,262 537,216
Mutual funds 24,376,052 3,421,496
Total equities 54,501,955 32,366,189
Real estate owned 2,395,131 3,539,381
Other short-term investments 17,515,505 64,144,129
Pooled investment funds, at NAV 481,676,471 338,737,208
Total investments $ 616,430,187 496,354,507
The following schedule summarizes net investment income in the statements of activities for the years ended June 30,
2021 and 2020:
2021 2020
Dividends and interest, net of expenses $ 5,483,107 9,281,378
Net realized and unrealized gains (losses) 129,312,482 (33,767,311)
$ 134,795,589 (24,485,933)
Fair Value Measurements
ASC Topic 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
▪ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are observable at the
measurement date.
▪ Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or
liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated
by observable market data; and
▪ Level 3: Significant unobservable inputs for the asset or liability that reflects the reporting entity’s own estimates
about the assumptions that market participants would use in pricing the asset or liability. These assumptions are
based on audited financial statements provided by the general partner of the investment combined with additional
third-party due diligence.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest
level input that is significant to the fair value measurement in its entirety. In accordance with Subtopic 820-10, certain
investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have
not been classified in the fair value hierarchy. The fair value amounts presented in the fair value hierarchy table are
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
108
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying statement
of financial position.
The following tables present the financial assets of UMF carried at fair value by level within the valuation hierarchy
as of June 30, 2021 and 2020:
2021
Level 1 Level 2 Level 3 Total
Investment strategy:
Fixed income: $
U.S. Government securities — 3,294,335 — 3,294,335
Corporate bonds — 28,591,118 — 28,591,118
Certificates of deposit — 544,497 — 544,497
Other fixed income securities 23,822,756 4,088,419 — 27,911,175
Total fixed income 23,822,756 36,518,369 — 60,341,125
Equities:
Common stock 29,197,641 — — 29,197,641
International common stock funds:
928,262 — — 928,262
Mutual funds 24,376,052 — — 24,376,052
Total equities 54,501,955 — — 54,501,955
Real estate owned — — 2,395,131 2,395,131
Other short-term investments 17,515,505 — — 17,515,505
$ 95,840,216 36,518,369 2,395,131 134,753,716
Pooled investment funds, at NAV 481,676,471
Total investments $ 616,430,187
Beneficial interest in trusts $ 3,922,205 7,621,439 — 11,543,644
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
109
2020
Level 1 Level 2 Level 3 Total
Investment strategy:
Fixed income: $
U.S. Government securities — 3,446,113 — 3,446,113
Corporate bonds — 25,136,691 — 25,136,691
Certificates of deposit — 533,464 — 533,464
Other fixed income securities 23,936,722 4,514,610 — 28,451,332
Total fixed income 23,936,722 33,630,878 — 57,567,600
Equities:
Common stock 28,407,477 — — 28,407,477
International common stock funds:
537,216 — — 537,216
Mutual funds 3,421,496 — — 3,421,496
Total equities 32,366,189 — — 32,366,189
Real estate owned — — 3,539,381 3,539,381
Other short-term investments 64,144,129 — — 64,144,129
$ 120,447,040 33,630,878 3,539,381 157,617,299
Pooled investment funds, at NAV 338,737,208
Total investments $ 496,354,507
Beneficial interest in trusts $ 3,936,261 6,293,165 — 10,229,426
The table below represents a summary of the investments whose net asset value approximates fair value and the related
unfunded commitments and redemption restrictions associated with each major category at June 30, 2021:
Investment Fair Value
Unfunded
Commitments
Redemption
frequency
(if eligible)
Redemption
notice
period
Expected life span
of investment
Pooled investment funds, at NAV:
Diversifying strategies $ 19,411,496 — Semiannually 60 days Indefinite
Energy MLP 290,656 — Quarterly 60 days Indefinite
Event driven 77,849 — Quarterly 60 days Indefinite
Fixed income 34,164,781 — Daily 5 days Indefinite
Global equity 116,072,361 —
No redemption feature
None Indefinite
Global equity-long only 58,749,552 — Quarterly 90 days Indefinite
Long/short equity fund 13,659,376 — Quarterly 60 days Indefinite
Natural resource private fund 8,493,876 13,801
No redemption feature
None 10 years
Private credit 7,765,426 —
No redemption feature
None Indefinite
Relative value 16,296,877 — Quarterly 65 days Indefinite
Timber fund 7,386,760 —
No redemption feature
None 12 years
Other 36,871 —
No redemption feature
None Indefinite
Venture capital and private equity 199,270,590 39,242,847
No redemption feature
None 7 years to indefinite
$ 481,676,471
Real estate:
Real estate owned $ 2,395,131
No redemption feature
None Indefinite
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
110
(e) Net Assets With Donor Restrictions
Net assets with donor restrictions at June 30, 2021 and 2020 were restricted for the following purposes:
2021 2020
Spendable:
Academic and program support $ 214,237,174 198,110,337
Scholarship support 101,935,356 56,335,571
Faculty support 50,037,880 25,893,939
Library support 11,125,115 6,628,894
Total $ 377,335,525 286,968,741
Endowment:
Academic and program support $ 66,541,534 59,528,388
Scholarship support 128,436,338 122,075,173
Faculty support 74,824,783 76,217,594
Library support 13,960,490 14,006,374
Total 283,763,145 271,827,529
Total net assets with donor restrictions $ 661,098,670 558,796,270
(f) Endowment Funds
The State of Mississippi adopted the UPMIFA effective July 1, 2012. The foundation’s board of directors has
determined its donor agreements provide for the preservation of the fair value of the original gift as of the date of the
gift. As a result, the foundation segregates within the net asset class with donor restrictions, the original gift amount
and amounts required to be retained by donor separate from the portion subject to appropriation.
Endowment net asset composition by type of fund as of June 30, 2021 and 2020 is as follows:
Without
donor
restrictions
With
donor
restrictions
Total
Donor-restricted endowment funds:
Original donor-restricted gift amount
and amounts required to be retained
by donor $ — 283,763,145 283,763,145
Portion subject to appropriation — 181,845,430 181,845,430
Board-designated quasi endowment 18,027,414 — 18,027,414
Total endowment funds $ 18,027,414 465,608,575 483,635,989
2021
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
111
Without
donor
restrictions
With
donor
restrictions
Total
Donor-restricted endowment funds:
Original donor-restricted gift amount
and amounts required to be retained
by donor $ — 271,827,529 271,827,529
Portion subject to appropriation — 83,592,937 83,592,937
Board-designated quasi endowment 14,294,049 — 14,294,049
Total endowment funds $ 14,294,049 355,420,466 369,714,515
2020
Changes in endowment net assets for the years ended June 30, 2021 and 2020 are as follows:
Without
donor
restrictions
With
donor
restrictions
Total
Endowment net assets, June 30, 2019 $ 14,271,593 387,084,504 401,356,097
Contributions and transfers to endowment — 10,357,996 10,357,996
Appropriation of expenditures (226,945) (12,017,214) (12,244,159)
Investment return:
Investment income 745,955 13,037,864 13,783,819
Net realized and unrealized losses (496,554) (43,042,684) (43,539,238)
Endowment net assets, June 30, 2020 14,294,049 355,420,466 369,714,515
Contributions and transfers to endowment — 11,458,036 11,458,036
Appropriation of expenditures (152,148) (13,311,917) (13,464,065)
Investment return:
Investment income 740,251 12,887,213 13,627,464
Net realized and unrealized gains 3,145,262 99,154,777 102,300,039
Endowment net assets, June 30, 2021 $ 18,027,414 465,608,575 483,635,989
(g) Funds with Deficiencies
When unfavorable market fluctuations cause the fair value of certain donor-restricted endowments to be less than the
historical cost (original gift/book value) of such funds, the fund is considered to be underwater, and this deficiency is
recorded in net assets with donor restrictions. As of June 30, 2021, there were no endowments with deficiencies. As
of June 30, 2020, there was one fund underwater with an original gift value of $25.2 million, fair value of $24.0 million
and deficiency of $1.2 million which is reported in net assets with donor restrictions.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
112
Note 24
Significant Disclosures for the Discretely Presented Component Unit of the IHL System – University of
Southern Mississippi Foundation
(a) Nature of Organization
The University of Southern Mississippi Foundation (USMF) is a nonprofit entity organized under the laws of the State
of Mississippi to provide support to the University of Southern Mississippi (USM) and its students. USMF depends
on the university to provide the staff and facilities for its operations.
Foundation Aviation Holdings, LLC was formed by the USMF in October 2008 as a single member limited liability
company. The USMF’s consolidated financial statements include the accounts of Foundation Aviation Holdings, LLC.
(b) Significant Accounting Policies
Basis of Accounting
The USMF consolidated financial statements are presented on the accrual basis of accounting and have been prepared
to present balances and transactions according to the existence or absence of donor-imposed restrictions. Accordingly,
net assets and changes therein are classified and recorded as follows:
Net assets without donor restrictions – net assets available for use in general operations and not subject to donor or
grantor restrictions. The governing board has designated, from net assets without donor restrictions, net assets for an
operating reserve and board-designated endowment.
Net assets with donor restrictions – net assets subject to donor or certain grantor-imposed restrictions. Some donor-
imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events
specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that
resources be maintained in perpetuity. Gifts of long-lived assets and gifts of cash restricted for the acquisition of long-
lived assets are recognized as restricted revenue when received and release from restrictions when the assets are placed
in service. Donor-imposed restrictions are released when a restriction expires, that is, when the stipulated time has
elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both.
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited
by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and
losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor
restrictions unless the use of the underlying net asset is restricted by explicit donor stipulations or by law. Expirations
of restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has
elapsed) are reported as net assets released from restrictions.
Contributions, including unconditional promises to give, are recognized as revenues in the period received.
Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on
which they depend are substantially met. Contributions of assets other than cash are recorded at their estimated fair
value as of the date of the gift. Contributions to be received after one year are discounted at a rate commensurate with
the risks involved. Amortization of the discount is recorded as contribution revenue and recognized in accordance
with donor-imposed restrictions, if any, on the contributions. Allowance is made for uncollectible contributions based
upon management’s judgment and analysis of the creditworthiness of the donors, past collection experience and other
relevant factors.
Income and realized and unrealized gains (losses) on investments of restricted net assets are reported as follows:
▪ as increases (decreases) in net assets with donor restrictions that are perpetual in nature if the terms of the gift or
the foundation’s interpretation of relevant state law requires that they be added to the principal of a donor-
restricted endowment fund;
▪ as increases (decreases) in net assets with donor restrictions that are temporary in nature in all other cases and
released from restriction when appropriated for expenditure in accordance with donor agreements.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
113
Use of Estimates
The USMF prepares its consolidated financial statements in accordance with U.S. generally accepted accounting
principles, which require that management make estimates and assumptions that affect the reported amounts of assets
and liabilities and revenues and expenses. Actual results could differ significantly from those estimates.
USMF’s investments are held in various types of investment securities across a variety of markets. Investment
securities are exposed to several risks, such as interest rate, market and credit risks. Due to the level of risk associated
with certain investment securities, it is reasonably possible that changes in the values of investment securities will
occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
Investments
Investments in equity securities with readily determinable fair values and all investments in debt securities are
recorded at fair value. Hedge funds, real estate investment funds and private equity funds are reported at the net asset
value (NAV) reported by the fund managers, which is used as a practical expedient to estimate the fair value of the
foundation’s interest therein, unless it is probable that all or a portion of the investment will be sold for an amount
different from NAV. At June 30, 2021 and 2020, USMF had no plans or intentions to sell investments at amounts
different from NAV. Other investments, which consist primarily of donated assets and real estate for which the
foundation is the owner and beneficiary are recorded at cost. Transactions are accounted for on a trade date basis.
(c) Pledges Receivable, Net
Pledges receivable, net, are summarized as follows at June 30, 2021 and 2020:
2021 2020
Unconditional promises expected to be collected in:
Less than one year $ 2,766,135 3,963,125
One year to five years 1,445,988 3,502,335
More than five years 221,258 6,700
4,433,381 7,472,160
Present value discounts (rates ranging
from 0.29% to 3.50%) (59,279) (154,314)
4,374,102 7,317,846
Allowances for uncollectible pledges (609,950) (347,600)
$ 3,764,152 6,970,246
(d) Investments
Investments, aggregated by investment strategy, consist of the following at June 30, 2021 and 2020:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
114
2021 2020
Fixed income:
U.S. government securities $ 1,809,211 1,292,935
Corporate bonds 3,742,063 3,052,100
Mutual funds 45,351,647 44,191,350
Other fixed income securities 1,042,414 1,856,205
Total fixed income 51,945,335 50,392,590
Equities:
Mutual and common stock funds 66,296,104 49,257,498
Alternative investments:
Hedge funds 21,807,408 12,553,972
Real estate investment funds 4,699,935 4,236,575
Private equity funds 2,964,964 1,492,076
Total alternative investments 29,472,307 18,282,623
Cash and cash equivalents 182,615 199,358
Investments held at cost 51,532 73,532
Total investments $ 147,947,893 118,205,601
The following schedule summarizes net investment income in the consolidated statements of activities for the years
ended June 30, 2021 and 2020:
2021 2020
Dividends and interest, net of expenses $ 1,569,283 2,179,961
Net realized and unrealized gains (losses) 25,896,989 (374,663)
$ 27,466,272 1,805,298
Fair Value Measurements
ASC Topic 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
▪ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are observable at the
measurement date.
▪ Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or
liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated
by observable market data; and
▪ Level 3: Significant unobservable inputs for the asset or liability that reflects the reporting entity’s own estimates
about the assumptions that market participants would use in pricing the asset or liability. These assumptions are
based on audited financial statements provided by the general partner of the investment combined with additional
third-party due diligence.
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest
level input that is significant to the fair value measurement in its entirety. In accordance with Subtopic 820-10, certain
investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have
not been classified in the fair value hierarchy. The fair value amounts presented in the fair value hierarchy table are
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the accompanying
consolidated statements of financial position.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
115
The following tables present USMF’s financial assets carried at fair value by level within the valuation hierarchy as
of June 30, 2021 and 2020:
Level 1 Level 2 Level 3 Total
Fixed income:
U.S. Government securities $ — 1,809,211 — 1,809,211
Corporate bonds — 3,742,063 — 3,742,063
Mutual funds 45,351,647 — — 45,351,647
Other fixed income securities — 1,042,414 — 1,042,414
Equities:
Mutual and common stock 66,296,104 — — 66,296,104
Total investments at fair value $ 111,647,751 6,593,688 — 118,241,439
Investments measured at NAV or equivalent 29,472,307
Cash and cash equivalents 182,615
Other investments held at cost 51,532
Total investments $ 147,947,893
Amounts due from externally
managed trusts $ — — 14,608,988 14,608,988
2021
Level 1 Level 2 Level 3 Total
Fixed income:
U.S. Government securities $ — 1,292,935 — 1,292,935
Corporate bonds — 3,052,100 — 3,052,100
Mutual funds 44,191,350 — — 44,191,350
Other fixed income securities — 1,856,205 — 1,856,205
Equities:
Mutual and common stock 49,257,498 — — 49,257,498
Total investments at fair value $ 93,448,848 6,201,240 — 99,650,088
Investments measured at NAV or equivalent 18,282,623
Cash and cash equivalents 199,358
Other investments held at cost 73,532
Total investments $ 118,205,601
Amounts due from externally
managed trusts $ — — 9,969,592 9,969,592
2020
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
116
The following table includes a rollforward of the amounts for the years ended June 30, 2021 and 2020 for investments
classified within Level 3:
Amounts due
from Externally
Managed Trusts
Balance as of June 30, 2019 $ 7,944,900
Change in value 2,024,692
Balance as of June 30, 2020 9,969,592
Change in value 916,014
Contributions 3,723,382
Balance as of June 30, 2021 $ 14,608,988
The following is a summary of the investments whose net asset value approximates fair value and the related unfunded
commitments and redemption restrictions associated with each major category at June 30, 2021 and 2020:
Investment
Net Asset
Value
Unfunded
Commitments
Redemption
frequency
Redemption
notice
Hedge funds $ 21,807,408 — Various Various
Real estate investment funds 4,699,935 — Quarterly 95 days
Private equity 2,964,964 5,903,196 None None
Total $ 29,472,307
2021
Investment
Net Asset
Value
Unfunded
Commitments
Redemption
frequency
Redemption
notice
Hedge funds $ 12,553,972 — Various Various
Real estate investment funds 4,236,575 — Quarterly 95 days
Private equity 1,492,076 6,766,309 None None
Total $ 18,282,623
2020
(e) Net Assets with Donor Restrictions
Net assets with donor restrictions consisted of the following at June 30, 2021 and 2020:
2021 2020
Subject to expenditure for specified purpose:
Student financial aid $ 3,329,268 5,192,612
Academic divisions 2,653,422 2,328,157
Research 367,788 365,189
Operations and maintenance of plant 4,166,347 3,680,027
Library 273,632 184,471
Athletics 450,288 447,900
Faculty and staff support 87,602 67,422
Other restricted purposes 5,824,309 5,983,740
17,152,656 18,249,518
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
117
Endowments:
Original donor-restricted gift amount and amounts
required to be maintained in perpetuity by donor:
Student financial aid 52,940,881 48,425,484
Academic divisions 4,709,080 4,446,809
Research 546,411 517,517
Operations and maintenance of plant 5,652,402 5,607,880
Library 3,042,899 3,038,987
Faculty and staff support 10,025,648 9,993,271
Other restricted purposes 5,550,283 5,312,562
Total 82,467,604 77,342,510
Subject to foundation endowment spending
policy and appropriation:
Student financial aid 24,421,921 11,666,046
Academic divisions 2,266,766 1,182,429
Research 183,368 68,170
Operations and maintenance of plant 1,831,985 733,749
Library 1,210,587 587,389
Faculty and staff support 4,579,178 2,278,420
Other restricted purposes 3,798,230 2,423,754
Total 38,292,035 18,939,957
Sub-Total endowments 120,759,639 96,282,467
Endowment not subject to spending policy or appropriations
externally managed perpetual trust 3,791,753 —
Total endowments 124,551,392 96,282,467
Not subject to spending policy or appropriation -
Restricted to endowment:
Pledges and other receivables, net 2,553,725 1,074,700
Amounts due from externally managed trusts 10,817,235 9,969,592
Gift annuities 32,887 237,911
Cash surrender value of life insurance 2,153,929 2,101,848
Total 15,557,776 13,384,051
Total net assets with donor restrictions $ 157,261,824 127,916,036
(f) Endowment Funds
The State of Mississippi adopted the UPMIFA effective July 1, 2012. The foundation’s board of directors has
determined its donor agreements provide for the preservation of the fair value of the original gift as of the date of the
gift. As a result, the foundation segregates within the net asset class with donor restrictions, the original gift amount
and amounts required to be retained by donor separate from the portion subject to appropriation.
Endowment net asset composition by type of fund as of June 30, 2021 and 2020 is as follows:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
118
Without
donor
restrictions
With
donor
restrictions
Total
Board designated endowment funds $ 6,391,835 — 6,391,835
Donor-restricted funds functioning
as endowments 5,241,665 7,859,322 13,100,987
Donor-restricted endowment funds:
Original donor-restricted gift amount
and amounts required to be maintained
in perpetuity by donor — 82,467,604 82,467,604
Accumulated investment gains — 30,432,713 30,432,713
Sub-total $ 11,633,500 120,759,639 132,393,139
Externally managed perpetual trust — 3,791,753 3,791,753
Total $ 11,633,500 124,551,392 136,184,892
2021
Without
donor
restrictions
With
donor
restrictions
Total
Board designated endowment funds $ 3,948,733 — 3,948,733
Donor-restricted funds functioning
as endowments 3,286,668 5,642,524 8,929,192
Donor-restricted endowment funds:
Original donor-restricted gift amount
and amounts required to be maintained
in perpetuity by donor — 77,342,510 77,342,510
Accumulated investment gains — 13,297,433 13,297,433
Total $ 7,235,401 96,282,467 103,517,868
2020
During the years ended June 30, 2021 and 2020, the foundation had the following endowment related activities:
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Financial Statements
June 30, 2021 and 2020
119
Without
donor
restrictions
With
donor
restrictions
Total
Endowment net assets, June 30, 2019 $ 7,149,809 97,727,793 104,877,602
Net investment loss (95,748) (438,478) (534,226)
Contributions 17,062 2,250,693 2,267,755
Change in restrictions by donors (5,000) 8,750 3,750
Other 169,278 (3,266,291) (3,097,013)
Endowment net assets, June 30, 2020 7,235,401 96,282,467 103,517,868
Net investment gain 3,146,221 20,880,368 24,026,589
Contributions 6,000 7,079,328 7,085,328
Change in restrictions by donors (10,135) 1,139 (8,996)
Other 1,256,012 308,091 1,564,103
Endowment net assets, June 30, 2021 $ 11,633,499 124,551,393 136,184,892
(g) Funds with Deficiencies
When unfavorable market fluctuations cause the fair value of certain donor-restricted endowments to be less than the
historical cost (original gift/book value) of such funds, the fund is considered to be underwater, and this deficiency is
recorded in net assets with donor restrictions. At June 30, 2021, there were no underwater funds. At June 30, 2020, 31
funds were underwater with an original gift value of $1,117,720, fair value of $1,103,898 and deficiencies of $13,822
which are reported in net assets with donor restrictions.
COMBINING SUPPLEMENTAL INFORMATION
(THIS PAGE LEFT BLANK INTENTIONALLY)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Net Position
June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
Assets University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Current assets:
Cash and cash equivalents $ 43,679,461 7,895,991 39,181,846 298,970,968 9,977,616 19,485,385 10,348,510 120,371,082 399,363,333 12,135,361 69,175 — 961,478,728
Short-term investments 4,305,510 380,819 — 16,566,518 — 3,481,768 109,159,141 6,345,393 118,897,107 16,297,956 175,065 — 275,609,277
Accounts receivable, net 14,981,863 5,148,979 18,074,489 65,588,040 4,652,083 11,725,919 40,021,032 37,269,439 174,930,704 2,111,315 495,861 (3,851,137) 371,148,587
Student notes receivable, net 728,316 318,592 — 3,685,085 10,132 — 8,627,605 4,965,900 1,450,030 1,034,876 — — 20,820,536
Inventories 236,928 486,402 94,126 3,437,542 — 437,907 1,130,367 198,827 35,156,004 892,522 — — 42,070,625
Prepaid expenses — — 11,539 8,502,241 14,296 250,512 1,875,893 4,979,606 10,618,224 33,928 — — 26,286,239
Other current assets — — — 1,134,377 — — — — 9,924,735 — — — 11,059,112
Total current assets 63,932,078 14,230,783 57,362,000 397,884,771 14,654,127 35,381,491 171,162,548 174,130,247 750,340,137 32,505,958 740,101 (3,851,137) 1,708,473,104
Noncurrent assets:
Restricted cash and cash equivalents 4,938,449 554,476 2,917,479 3,435,060 (915,390) — 39,742,613 11,260,364 78,830,522 — — — 140,763,573
Restricted short-term investments 1,055,342 — — — — 355,772 — — — — — — 1,411,114
Endowments investments 21,283,437 — 57,569,465 52,591,932 4,209,107 3,649,695 124,760,155 10,863,512 107,264,481 21,376,845 — — 403,568,629
Other long-term investments — — — 82,347,831 10,000,862 1,230,993 366,181,202 20,757,000 96,460,998 46,705,459 524,553 — 624,208,898
Student notes receivable, net — 368,279 1,292,796 12,818,888 116,534 — 24,734,833 10,531,949 4,150,868 14,182,428 — — 68,196,575
Beneficial interest in irrevocable trust — — — — — — — — 43,991,738 — — — 43,991,738
Capital assets, net 155,565,901 122,726,414 252,554,222 1,135,763,582 110,458,597 111,352,933 1,129,839,783 585,213,707 852,725,428 3,995,391 3,468 — 4,460,199,426
Other noncurrent assets — 116,376 84,841 — — 142,378 13,485,421 — 2,105,844 — — (13,315,521) 2,619,339
Total noncurrent assets 182,843,129 123,765,545 314,418,803 1,286,957,293 123,869,710 116,731,771 1,698,744,007 638,626,532 1,185,529,879 86,260,123 528,021 (13,315,521) 5,744,959,292
Total assets 246,775,207 137,996,328 371,780,803 1,684,842,064 138,523,837 152,113,262 1,869,906,555 812,756,779 1,935,870,016 118,766,081 1,268,122 (17,166,658) 7,453,432,396
Deferred outflows of resources 14,143,321 6,565,003 24,696,377 100,867,989 5,589,546 5,793,385 47,124,184 42,347,361 226,941,716 2,388,176 214,835 — 476,671,893
Total assets and deferred outflows of resources $ 260,918,528 144,561,331 396,477,180 1,785,710,053 144,113,383 157,906,647 1,917,030,739 855,104,140 2,162,811,732 121,154,257 1,482,957 (17,166,658) 7,930,104,289
120 (Continued)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Net Position
June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
Liabilities University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Current liabilities:
Accounts payable and accrued liabilities $ 7,185,633 3,780,707 19,935,870 59,512,304 1,869,597 1,484,170 26,947,240 22,206,350 175,219,391 1,303,200 245,240 (307,758) 319,381,944
Unearned revenues 2,412,367 1,011,358 3,770,000 38,335,280 1,628,141 441,689 90,293,535 13,110,332 12,946,702 — — — 163,949,404
Accrued leave liabilities – current portion 650,251 398,425 399,083 2,871,569 43,011 191,908 2,148,000 1,199,330 10,172,843 48,258 10,873 — 18,133,551
Long-term liabilities – current portion 1,422,512 610,000 4,811,577 14,348,456 — 725,000 14,564,478 7,025,030 19,417,096 6,190,120 — (3,543,379) 65,570,890
Other current liabilities — — — — 278,512 86,119 304,300 128,187 168,927,397 434,324 — — 170,158,839
Total current liabilities 11,670,763 5,800,490 28,916,530 115,067,609 3,819,261 2,928,886 134,257,553 43,669,229 386,683,429 7,975,902 256,113 (3,851,137) 737,194,628
Noncurrent liabilities:
Accrued leave liabilities 2,519,046 1,195,280 5,143,739 22,876,296 1,032,275 1,356,806 15,870,079 8,795,088 63,304,156 750,945 44,818 — 122,888,528
Deposits refundable 678,133 102,834 703,815 45,348 — 30,110 124,116 3,086 — — — — 1,687,442
Long-term liabilities 44,239,600 11,535,000 88,664,689 298,233,226 — 15,290,000 216,014,430 148,106,969 383,984,456 25,526,239 — (13,315,521) 1,218,279,088
Net pension liability 80,909,069 51,106,285 131,957,542 623,650,981 43,996,647 47,700,781 370,390,153 253,087,895 1,498,101,899 20,183,265 1,925,718 — 3,123,010,235
Net OPEB liability 4,285,131 3,181,438 6,385,068 31,009,098 2,421,117 2,917,487 20,806,654 13,981,862 60,353,305 661,048 — — 146,002,208
Other long-term liabilities — — 1,912,787 6,636,756 256,695 — 7,790,700 21,595,328 2,633,043 — — — 40,825,309
Total noncurrent liabilities 132,630,979 67,120,837 234,767,640 982,451,705 47,706,734 67,295,184 630,996,132 445,570,228 2,008,376,859 47,121,497 1,970,536 (13,315,521) 4,652,692,810
Total liabilities 144,301,742 72,921,327 263,684,170 1,097,519,314 51,525,995 70,224,070 765,253,685 489,239,457 2,395,060,288 55,097,399 2,226,649 (17,166,658) 5,389,887,438
Deferred inflows of resources 4,596,933 1,647,555 16,938,099 6,870,592 903,923 1,613,745 11,502,812 6,334,520 57,080,029 590,024 — — 108,078,232
Total liabilities and deferred inflows of resources $ 148,898,675 74,568,882 280,622,269 1,104,389,906 52,429,918 71,837,815 776,756,497 495,573,977 2,452,140,317 55,687,423 2,226,649 (17,166,658) 5,497,965,670
N
et Position
Net investment in capital assets $ 113,159,660 110,581,414 176,232,647 836,921,485 110,458,596 95,539,861 917,771,958 417,778,609 480,673,876 3,995,391 3,468 — 3,263,116,965
Restricted for:
Nonexpendable:
Scholarship and fellowships — — 9,167,355 3,076,532 879,393 1,341,645 9,622,005 5,569,090 — 978,480 — — 30,634,500
Research — — — 5,680,110 — — 184,605 — — — — — 5,864,715
Other purposes 17,468,403 — 39,586,025 9,471,058 286,659 — 44,351,606 — 28,680,271 21,039,378 — — 160,883,400
Expendable:
Scholarships and fellowships — — 8,719,526 2,187,262 357,898 1,167,625 11,327,476 5,868,986 9,776,220 17,440,144 — — 56,845,137
Research — — — 14,258,051 — — 5,997,880 — 36,040,516 — — — 56,296,447
Capital projects — 49,874 767,983 5,340,819 2,105,260 766,858 8,274,665 — — — — — 17,305,459
Debt service — 74,623 16,929 (4,596,223) — 355,772 — 24,459,699 1,025,967 — — — 21,336,767
Loans 553,699 — 337,551 12,975,614 239,890 — 30,225,485 5,162,340 7,161,626 — — — 56,656,205
Other purposes — — 8,233 1,455,132 — 579,742 30,108,809 9,998,990 93,424,071 29,376,529 1,005,572 — 165,957,078
Unrestricted (19,161,909) (40,713,462) (118,981,338) (205,449,693) (22,644,231) (13,682,671) 82,409,753 (109,307,551) (946,111,132) (7,363,088) (1,752,732) — (1,402,758,054)
Total net position $ 112,019,853 69,992,449 115,854,911 681,320,147 91,683,465 86,068,832 1,140,274,242 359,530,163 (289,328,585) 65,466,834 (743,692) — 2,432,138,619
See accompanying independent auditors' report.
121
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Revenues, Expenses and Changes in Net Position
Year ended June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Operating revenues:
Tuition and fees $ 23,354,097 23,919,304 62,205,451 319,085,911 20,464,452 12,523,370 334,765,273 142,386,209 42,871,903 — — — 981,575,970
Scholarship allowances (10,845,346) (5,466,695) (16,117,627) (111,828,077) (6,525,814) (8,581,860) (113,219,793) (47,432,521) (5,686,197) — — — (325,703,930)
Bad debt expense (362,585) — (3,012,577) (1,578,299) (246,255) — 783,347 (1,048,259) (59,574) — — — (5,524,202)
Net tuition and fees 12,146,166 18,452,609 43,075,247 205,679,535 13,692,383 3,941,510 222,328,827 93,905,429 37,126,132 — — — 650,347,838
Federal appropriations — — — 15,519,984 — — — — — — — — 15,519,984
Federal grants and contracts 20,091,744 8,552,399 30,438,863 146,621,004 1,122,505 6,709,864 46,961,532 53,222,100 59,629,077 1,178,482 2,943,777 (37,245,426) 340,225,921
State grants and contracts 483,511 3,639,076 1,944,008 24,466,905 7,183,936 1,153,321 14,015,429 10,506,861 5,708,971 337,491 — (34,056,997) 35,382,512
Nongovernmental grants and contracts 407,183 2,903,948 1,231,106 11,703,492 2,706,417 — 31,850,561 11,482,212 16,901,489 595,779 — — 79,782,187
Sales and services of educational departments 128,546 758,874 1,112,102 47,257,629 918,645 620,064 5,710,789 892,832 1,251,696 3,429,248 — (2,549,622) 59,530,803
Auxiliary enterprises:
Student housing 10,393,326 2,528,069 8,566,806 29,635,640 1,390,282 2,445,578 22,306,777 15,553,456 — — — — 92,819,934
Food services 5,165,782 1,896,429 8,113,249 2,145,131 1,266,133 1,894,136 2,165,092 2,387,223 — — — — 25,033,175
Bookstore 256,085 136,229 — 1,255,703 90,872 368,890 446,071 761,628 1,934,395 — — — 5,249,873
Athletics — — — 81,352,390 — — 90,323,971 6,464,048 — — — — 178,140,409
Other auxiliary revenues 635,056 90,313 1,371,462 12,080,955 204,314 1,101,211 9,992,105 3,923,075 563,556 2,561,742 — — 32,523,789
Less auxiliary enterprise scholarship allowances (2,882,940) — (3,683,855) (11,861,865) (868,167) — (7,226,795) (3,739,715) — — — — (30,263,337)
Interest earned on loans to students — 30,380 — 298,849 — — 681,935 — 523,665 — — — 1,534,829
Patient care revenues — — — — — — — — 1,176,245,589 — — — 1,176,245,589
Other operating revenues 4,275,679 372,769 6,184,855 6,397,167 212,288 1,903,368 13,390,709 6,187,608 83,197,556 15,776,088 26,349 (13,056,942) 124,867,494
Total operating revenues 51,100,138 39,361,095 98,353,843 572,552,519 27,919,608 20,137,942 452,947,003 201,546,757 1,383,082,126 23,878,830 2,970,126 (86,908,987) 2,786,941,000
Operating expenses:
Salaries and wages 31,014,360 27,891,193 62,873,715 358,596,963 21,341,712 18,921,259 241,647,287 143,338,493 762,658,699 7,109,016 623,192 — 1,676,015,889
Fringe benefits 11,594,797 10,459,803 15,247,273 151,678,487 8,299,614 8,449,045 83,229,115 58,146,533 281,459,857 2,662,056 285,618 — 631,512,198
Travel 517,037 542,568 897,430 4,191,401 345,833 303,781 6,781,275 2,368,138 315,464 16,428 16,610 — 16,295,965
Contractual services 20,863,979 10,781,648 40,840,961 123,258,032 8,362,457 8,662,318 66,995,102 57,191,635 192,855,362 13,837,842 2,690,871 (52,851,990) 493,488,217
Utilities 3,442,556 1,469,796 3,675,310 16,152,012 2,603,644 1,867,226 12,383,435 9,152,571 13,369,346 581,282 — — 64,697,178
Scholarships and fellowships 12,575,609 5,886,771 14,733,006 61,316,933 6,507,279 3,471,488 71,353,715 27,474,435 6,885,285 45,678,721 — (34,056,997) 221,826,245
Commodities 5,667,644 5,241,477 2,407,654 51,997,576 2,299,284 3,546,143 28,667,600 18,938,925 342,906,222 393,711 52,137 — 462,118,373
Depreciation 4,445,439 4,584,963 8,307,493 40,045,027 2,500,866 2,758,645 38,723,198 19,011,604 50,355,965 111,251 4,305 — 170,848,756
Other operating expenses 602,302 335,910 5,027,017 — — — 1,196,391 — 43,605 — 12,146 — 7,217,371
Total operating expenses 90,723,723 67,194,129 154,009,859 807,236,431 52,260,689 47,979,905 550,977,118 335,622,334 1,650,849,805 70,390,307 3,684,879 (86,908,987) 3,744,020,192
Operating loss (39,623,585) (27,833,034) (55,656,016) (234,683,912) (24,341,081) (27,841,963) (98,030,115) (134,075,577) (267,767,679) (46,511,477) (714,753) — (957,079,192)
122 (Continued)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Revenues, Expenses and Changes in Net Position
Year ended June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Nonoperating revenue (expenses):
State appropriations $ 26,686,770 19,980,043 40,022,780 170,976,311 14,967,211 14,511,007 87,002,836 91,374,285 167,469,574 53,094,382 683,468 — 686,768,667
Gifts and grants 12,240,677 5,248,591 18,003,799 100,080,540 5,978,791 18,348,485 51,764,781 64,605,200 68,731,256 — — — 345,002,120
Investment income, net of investment expense 1,038,242 16,818 12,671,604 14,979,916 42,123 701,865 28,958,540 3,538,704 25,135,355 1,789,117 (344) (307,758) 88,564,182
Interest expense on capital assets-related debt (1,788,270) (482,900) (4,111,706) (8,802,950) — (569,343) (7,037,711) (5,787,149) (8,315,402) — — 307,758 (36,587,673)
Other nonoperating revenues — — 31,898,160 — 200,425 — 857,200 — — — 5,120 — 32,960,905
Other nonoperating expenses (1,299) (557,689) (25,055,942) (1,556,560) (609,118) — (31,255) — (6,187,240) (866,870) — — (34,865,973)
Total net nonoperating revenue 38,176,120 24,204,863 73,428,695 275,677,257 20,579,432 32,992,014 161,514,391 153,731,040 246,833,543 54,016,629 688,244 — 1,081,842,228
Income (loss) before other revenues,
expenses, gains and losses (1,447,465) (3,628,171) 17,772,679 40,993,345 (3,761,649) 5,150,051 63,484,276 19,655,463 (20,934,136) 7,505,152 (26,509) — 124,763,036
Capital grants and gifts — — — 15,233,400 — — 2,712,606 1,849,486 39,293,651 — — — 59,089,143
State appropriations restricted for capital purposes 1,331,923 3,119,810 3,621,596 3,437,515 3,378,859 1,377,715 485,246 6,407,653 14,286,005 933,425 — — 38,379,747
Additions to permanent endowments — — — — 23,792 161,672 33,491 — 184,173 — — — 403,128
Other additions 13,901,438 582,484 — — — — 600,941 1,336,379 — — — — 16,421,242
Other deletions (116,941) (38,158) — (809,935) (789) — (1,189,140) (201,115) (3,140,883) (396,090) (3,751) — (5,896,802)
Change in net position 13,668,955 35,965 21,394,275 58,854,325 (359,787) 6,689,438 66,127,420 29,047,866 29,688,810 8,042,487 (30,260) — 233,159,494
Net position, beginning of the year 98,350,898 69,956,484 94,460,636 622,465,822 92,043,252 79,379,394 1,074,146,822 330,482,297 (319,017,395) 57,424,347 (713,432) — 2,198,979,125
Net position, end of the year 112,019,853 69,992,449 115,854,911 681,320,147 91,683,465 86,068,832 1,140,274,242 359,530,163 (289,328,585) 65,466,834 (743,692) — 2,432,138,619
See accompanying independent auditors' report.
123
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Cash Flows
Year ended June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Operating activities:
Tuition and fees $ 10,103,074 18,198,493 47,948,350 207,943,853 13,636,220 2,483,974 220,945,751 84,955,504 36,688,654 — — — 642,903,873
Grants and contracts 22,740,247 14,970,448 33,463,827 202,472,513 11,012,858 2,718,136 100,043,878 75,211,173 86,288,802 2,111,752 3,012,066 (71,302,423) 482,743,277
Sales and services of educational departments 128,546 758,874 1,529,665 46,686,300 918,645 620,064 5,860,803 892,832 1,251,696 3,474,823 — (2,549,622) 59,572,626
Payments to suppliers (24,821,871) (15,938,265) (41,620,614) (169,854,115) (11,516,156) (12,602,364) (92,089,323) (80,898,255) (507,994,236) (17,305,394) (2,720,352) 53,519,477 (923,841,468)
Payments to employees for salaries and benefits (40,941,568) (36,066,207) (83,782,794) (477,659,941) (28,503,234) (25,850,395) (310,497,332) (194,100,593) (969,308,090) (9,277,619) (822,148) — (2,176,809,921)
Payments for utilities (3,442,556) (1,469,796) (3,675,310) (16,152,013) (2,603,644) (1,867,226) (12,271,919) (9,152,571) (13,369,346) (581,282) — — (64,585,663)
Payment for scholarships and fellowships (12,575,609) (5,886,771) (14,731,386) (61,316,933) (6,507,279) (3,471,488) (71,371,612) (27,474,435) (7,296,414) (45,952,178) — 34,056,997 (222,527,108)
Loans issued to students 7,300 — — (2,469,267) — — (4,295,968) 115,752 (650,288) (1,113,044) — — (8,405,515)
Collections of loans from students — 151,559 — 3,185,489 155,523 — 2,313,825 5,475,722 2,942,993 2,553,453 — — 16,778,564
Auxiliary enterprise charges:
Student housing 6,087,570 1,919,559 6,393,332 28,818,927 935,911 2,445,578 14,945,204 16,010,976 — — — — 77,557,057
Food services 5,165,782 1,948,454 6,602,868 2,173,409 852,337 1,894,136 2,049,866 2,085,015 — — — — 22,771,867
Bookstore 256,085 136,229 — 1,280,842 90,872 368,890 446,071 682,556 948,579 — — — 4,210,124
Athletics — — — 82,231,154 — — 94,000,398 2,692,314 — — — — 178,923,866
Other auxiliary enterprises 635,056 90,313 1,371,461 1,313,820 205,412 1,101,211 10,198,831 3,923,075 563,556 2,419,190 — — 21,821,925
Patient care services — — — — — — — — 1,205,721,855 — — — 1,205,721,855
Interest earned on loans to students — — — — 27,186 — 681,935 — 523,665 206,902 — — 1,439,688
Other receipts 10,085,514 281,934 4,980,053 20,363,793 212,288 1,948,238 15,577,957 6,187,608 86,090,947 15,776,088 26,349 (13,056,942) 148,473,827
Other payments — (3,633,894) — — — — (6,828,046) 2,805,183 (29,948) — (15,897) (667,487) (8,370,089)
Net cash used in operating activities (26,572,430) (24,539,070) (41,520,548) (130,982,169) (21,083,061) (30,211,246) (30,289,681) (110,588,144) (77,627,575) (47,687,309) (519,982) — (541,621,215)
Noncapital financing activities:
State appropriations 26,686,770 19,980,043 39,602,193 174,897,030 15,462,102 14,379,316 88,398,099 91,374,285 167,469,574 52,791,369 683,468 — 691,724,249
Gifts and grants for other than capital purposes 12,240,677 5,248,591 18,003,799 100,111,712 6,294,672 18,100,399 56,927,620 64,605,200 60,700,085 — — — 342,232,755
Private gifts for endowment purposes — — — — — 405,735 33,491 — 184,173 — — — 623,399
Federal loan program receipts 12,435,970 14,463,104 65,721,726 129,473,709 11,019,741 12,425,136 87,651,347 74,498,647 36,544,393 — — — 444,233,773
Federal loan program disbursements (18,908,938) (12,331,023) (65,721,726) (129,291,546) (11,357,145) (12,425,136) (87,651,347) (76,607,489) (43,822,299) — — — (458,116,649)
Other sources — — 7,305,456 — 3,641,658 — 430,674 1,336,379 — 933,425 — — 13,647,592
Other uses (116,939) (538,662) — (1,508,008) (609,907) — (787,872) (201,115) (703,197) (1,262,960) — — (5,728,660)
32,337,540 26,822,053 64,911,448 273,682,897 24,451,121 32,885,450 145,002,012 155,005,907 220,372,729 52,461,834 683,468 — 1,028,616,459
Net cash provided by noncapital
financing activities
124 (Continued)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Cash Flows
Year ended June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Capital and related financing activities:
Proceeds from Capital Debt $ 26,217 6,590 — — — — — — 174,051,993 — — (8,521,993) 165,562,807
Cash Paid for Capital Assets (13,814,776) (3,248,503) — (50,855,406) (330,763) (516,846) (11,900,713) (15,157,984) (70,703,724) (10,808) — — (166,539,523)
Capital Appropriations Received 1,331,923 3,119,810 — 1,202,287 (3,378,859) — 485,246 6,407,653 14,848,427 — — — 24,016,487
Capital Grants and Contracts Received 13,901,438 — — 6,925,823 — — (4,794,165) 1,849,486 36,293,638 — — 8,829,751 63,005,971
Proceeds from Sales of Capital Assets — — — 429,203 — — 165,892 — 2,704,617 — 5,120 — 3,304,832
Principal Paid on Capital Debt and Leases (1,130,000) (595,000) (4,746,494) (11,645,000) — (759,982) (14,837,322) (7,016,011) (136,695,000) — — — (177,424,809)
Interest Paid on Capital Debt and Leases (1,788,270) (482,900) (4,111,706) (13,264,133) — (559,764) (7,161,240) (5,787,149) (20,799,077) — — — (53,954,239)
Other Source 1,322,514 1,196,511 487,730 915,324 153,127 — 9,375 — — — — — 4,084,581
Other Uses (192,514) (19,027) — (892,511) — — (2,033,149) — (1,556,689) — — — (4,693,890)
(343,468) (22,519) (8,370,470) (67,184,413) (3,556,495) (1,836,592) (40,066,076) (19,704,005) (1,855,815) (10,808) 5,120 307,758 (142,637,783)
Investing activities:
Proceeds from Sales and Maturities of Investments — 2,505 — 68,816,686 14,347,643 724,504 180,399,583 23,225,158 172,701,815 68,304,794 843,494 — 529,366,182
Interest Received on Investments 1,618,269 16,245 12,671,604 3,550,456 111,028 841,472 6,520,729 2,614,435 1,682,318 1,907,344 1,533 (307,758) 31,227,675
Purchases of Investments (1,089,760) — (11,410,463) (70,312,735) (15,088,385) (2,185,264) (336,981,275) (11,820,345) (266,504,259) (76,192,371) (900,267) — (792,485,124)
528,509 18,750 1,261,141 2,054,407 (629,714) (619,288) (150,060,963) 14,019,248 (92,120,126) (5,980,233) (55,240) (307,758) (231,891,267)
5,950,151 2,279,214 16,281,571 77,570,722 (818,149) 218,324 (75,414,708) 38,733,006 48,769,213 (1,216,516) 113,366 — 112,466,194
Cash and cash equivalents - beginning of year 42,667,759 6,171,253 25,817,754 224,835,306 9,880,375 19,267,061 125,505,831 92,898,440 429,424,642 13,351,877 (44,191) — 989,776,107
Cash and cash equivalents - end of year 48,617,910 8,450,467 42,099,325 302,406,028 9,062,226 19,485,385 50,091,123 131,631,446 478,193,855 12,135,361 69,175 — 1,102,242,301
Net cash provided by (used in) capital
and related financing activities
Net cash provided by (used in)
investing activities
Net increase (decrease) in cash an
d
cash equivalents
125 (Continued)
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Combining Statement of Cash Flow
s
Year ended June 30, 2021
University
Alcorn Delta Jackson Mississippi Mississippi Mississippi University University of Mississippi
State State State State University Valley State of of Southern Medical IHL Board Elimination
University University University University for Women University Mississippi Mississippi Center Office MCVS entries Total
Reconciliation of operating loss to net cash used in
operating activities:
Operating loss $ (39,623,585) (27,833,034) (55,656,016) (234,683,912) (24,341,081) (27,841,963) (98,030,115) (134,075,577) (267,767,679) (46,511,477) (714,753) — (957,079,192)
Adjustment to reconcile operating loss to net cash
used in operating activities:
Depreciation expense 4,445,439 4,584,963 8,307,493 40,045,027 2,500,866 2,758,645 38,723,198 19,011,604 50,355,965 111,251 4,305 — 170,848,756
Self-insurance claims expense — — — — — — — — (1,357,084) 2,716,803 — — 1,359,719
Provision for uncollectible accounts receivable 362,585 298,501 (3,792,970) 1,578,299 608,420 — (743,226) 1,254,434 213,757,164 (66,555) — — 213,256,652
Other — — — — — 1,554,155 — — — — (3,751) — 1,550,404
Changes in assets and liabilities:
(Increase) decrease in assets:
Receivables, net (1,088,289) (241,185) 9,444,799 (5,374,868) (481,874) (6,877,905) 9,969,743 (4,728,637) (168,640,815) 1,343,432 68,289 — (166,607,310)
Inventories (37,371) (101,524) 40,982 (359,379) — 25,889 17,397 45,488 (5,412,390) (76,868) — — (5,857,776)
Prepaid expenses — — — 918,927 (41,946) (21,230) (141,047) (134,774) (496,048) (5,344) — — 78,538
Loans to students 7,300 121,179 — — — — (1,994,536) — 621,799 — — — (1,244,258)
Deferred outflows of resources (6,263,334) (818,764) (9,180,119) (38,860,752) (2,230,296) (1,539,554) (15,044,120) (12,704,745) (50,833,433) (905,114) (62,059) — (138,442,290)
Other assets — (116,376) — — — (9,579) — — (2,642,849) — — — (2,768,804)
Increase (decrease) in liabilities:
Accounts payable and
accrued liabilities 2,566,648 176,945 6,408,125 19,359,383 (463,035) (17,215) 3,916,855 (2,404,997) 35,360,848 168,749 39,266 667,487 65,779,059
Unearned revenue 137,223 (228,741) (511,314) 25,635,798 1,098 326,342 2,145,100 2,965,136 3,199,392 — — — 33,670,034
Deposits refundable (303) 1,490 — — — (6,152) 1,675,714 20 — — — (667,487) 1,003,282
Accrued leave liability (132,816) 354,304 (665,359) (386,963) (53,509) (102,041) 667,847 (64,454) (3,958,136) 22,021 (5,176) — (4,324,282)
Net pension liability 5,121,847 2,769,880 5,556,330 65,437,502 4,623,026 3,504,185 31,145,314 21,757,768 137,938,643 1,465,844 174,936 — 279,495,275
Net OPEB liability (433,716) (375,239) (989,168) (2,045,797) (146,247) (397,443) (1,542,491) (1,292,201) (4,175,881) (98,637) — — (11,496,820)
Deferred inflows of resources 3,215,487 (60,064) (483,331) (2,245,434) (1,054,882) (27,205) (1,055,314) (311,935) (7,571,468) 9,339 (21,039) — (9,605,846)
Other liabilities 5,150,455 (3,071,405) — — (3,601) (1,540,175) — 94,726 (6,005,603) (5,860,753) — — (11,236,356)
Total adjustments 13,051,155 3,293,964 14,135,468 103,701,743 3,258,020 (2,369,283) 67,740,434 23,487,433 190,140,104 (1,175,832) 194,771 — 415,457,977
Net cash used in operating activities $ (26,572,430) (24,539,070) (41,520,548) (130,982,169) (21,083,061) (30,211,246) (30,289,681) (110,588,144) (77,627,575) (47,687,309) (519,982) — (541,621,215)
Noncash capital related financing and investing activities:
Capital assets acquired through donations and capital
lease obligations $ — — — 8,388,880 — — 971,073 — 38,760 — — — 9,398,713
Capital appropriations from the State of Mississippi 1,331,923 3,119,810 3,621,596 3,437,515 3,378,859 1,377,715 485,246 6,407,653 336,005 933,425 — — 24,429,747
See accompanying independent auditors' report.
126
REQUIRED SUPPLEMENTARY INFORMATION
(THIS PAGE LEFT BLANK INTENTIONALLY)
Employer
Proportionate
share of the
net pension
liability ($)
Estimated
Covered-employee
payroll provided
by PERS
Alcorn State University:
2015 0.47 % 56,758,259$ 28,572,870$ 199.00 % 67.00 %
2016 0.46 71,034,832 28,709,073 247.43 61.70
2017 0.46 82,196,659 29,437,759 279.22 57.47
2018 0.46 75,934,194 29,303,410 259.13 61.49
2019 0.45 75,156,617 28,855,149 260.46 62.54
2020 0.43 75,787,222 28,057,270 270.12 61.59
2021 0.42 80,909,069 27,829,874 290.73 58.97
Delta State University:
2015 0.28 33,537,396 16,883,175 199.00 67.00
2016 0.27 42,181,402 17,047,771 247.43 61.70
2017 0.26 47,229,076 16,914,533 279.22 57.47
2018 0.27 44,338,880 17,110,610 259.13 61.49
2019 0.27 44,872,460 17,228,044 260.46 62.54
2020 0.27 48,336,405 17,894,673 270.12 61.59
2021 0.26 51,106,285 17,578,764 290.73 58.97
Jackson State University:
2015 0.83 100,387,620 50,536,476 199.00 67.00
2016 0.85 130,840,285 52,898,190 247.43 61.70
2017 0.87 155,284,587 55,613,333 279.22 57.47
2018 0.91 152,074,130 58,686,216 259.13 61.49
2019 0.77 128,859,771 49,473,594 260.46 62.54
2020 0.72 126,401,212 46,795,130 270.12 61.59
2021 0.68 131,957,542 45,388,753 290.73 58.97
Mississippi State University:
2015 3.11 377,668,592 190,123,441 199.00 67.00
2016 3.15 487,619,653 197,073,543 247.43 61.70
2017 3.22 575,770,041 206,205,213 279.22 57.47
2018 3.16 525,651,937 202,851,879 259.13 61.49
2019 3.11 517,960,848 198,862,565 260.46 62.54
2020 3.17 558,213,479 206,656,819 270.12 61.59
2021 3.22 623,650,981 214,514,000 290.73 58.97
Mississippi University
for Women:
2015 0.22 27,087,951 13,636,438 199.00 67.00
2016 0.23 35,499,410 14,347,232 247.43 61.70
2017 0.23 41,584,769 14,893,092 279.22 57.47
2018 0.24 39,274,129 15,156,095 259.13 61.49
Proportionate
share of the net
pension
liability (%)
Proportionate
share of the net
pension liability
as a percentage of
its covered-
employee payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability of the
GASB 67 Paragraph 32(b)
June 30, 2021
Mississippi Public Employees' Retirement System
PERS fiduciary
net position
as a percentage
of the total
pension liability
127 (Continued)
Employer
Proportionate
share of the
net pension
liability ($)
Estimated
Covered-employee
payroll provided
by PERS
Proportionate
share of the net
pension
liability (%)
Proportionate
share of the net
pension liability
as a percentage of
its covered-
employee payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability of the
Mississippi Public Employees' Retirement System
GASB 67 Paragraph 32(b)
June 30, 2021
PERS fiduciary
net position
as a percentage
of the total
pension liability
2019 0.23 % 38,566,359$ 14,806,921$ 260.46 % 62.54 %
2020 0.22 39,373,621 14,576,551 270.12 61.59
2021 0.23 43,996,647 15,133,299 290.73 58.97
Mississippi Valley State
University:
2015 0.26 31,120,964 15,666,711 199.00 67.00
2016 0.24 37,755,185 15,258,908 247.43 61.70
2017 0.25 44,719,677 16,015,822 279.22 57.47
2018 0.25 41,999,298 16,207,752 259.13 61.49
2019 0.25 42,303,133 16,241,594 260.46 62.54
2020 0.25 44,196,596 16,362,070 270.12 61.59
2021 0.25 47,700,781 16,407,391 290.73 58.97
University of Mississippi:
2015 1.85 224,435,474 112,983,803 199.00 67.00
2016 1.86 287,872,551 116,344,946 247.43 61.70
2017 1.87 333,566,560 119,462,908 279.22 57.47
2018 1.92 319,127,442 123,152,978 259.13 61.49
2019 1.96 325,309,886 124,897,390 260.46 62.54
2020 1.93 339,244,839 125,592,222 270.12 61.59
2021 1.91 370,390,153 127,401,184 290.73 58.97
University of Southern
Mississippi:
2015 1.35 163,430,215 82,272,965 199.00 67.00
2016 1.32 204,738,145 82,745,841 247.43 61.70
2017 1.31 233,764,776 83,720,083 279.22 57.47
2018 1.34 222,060,208 85,694,216 259.13 61.49
2019 1.35 224,453,669 86,175,302 260.46 62.54
2020 1.31 231,330,127 85,640,978 270.12 61.59
2021 1.31 253,087,895 87,053,333 290.73 58.97
University of Mississippi
Medical Center:
2015 6.76 821,435,313 413,521,568 199.00 67.00
2016 7.04 1,087,561,173 439,542,508 247.43 61.70
2017 7.22 1,288,831,062 461,579,562 279.22 57.47
2018 7.30 1,212,970,916 468,091,930 259.13 61.49
2019 7.41 1,232,363,510 473,145,740 260.46 62.54
2020 7.73 1,360,163,256 503,547,517 270.12 61.59
2021 7.74 1,498,101,899 515,294,356 290.73 58.97
128 (Continued)
Employer
Proportionate
share of the
net pension
liability ($)
Estimated
Covered-employee
payroll provided
by PERS
Proportionate
share of the net
pension
liability (%)
Proportionate
share of the net
pension liability
as a percentage of
its covered-
employee payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability of the
Mississippi Public Employees' Retirement System
GASB 67 Paragraph 32(b)
June 30, 2021
PERS fiduciary
net position
as a percentage
of the total
pension liability
Executive Office:
2015 0.10 % 13,082,977$ 6,586,146$ 199.00 % 67.00 %
2016 0.11 16,593,427 6,706,305 247.43 61.70
2017 0.11 20,018,666 7,169,448 279.22 57.47
2018 0.10 18,081,464 6,977,734 259.13 61.49
2019 0.11 17,819,021 6,841,321 260.46 62.54
2020 0.11 18,717,421 6,929,397 270.12 61.59
2021 0.10 20,183,265 6,942,333 290.73 58.97
Mississippi Commission
for Volunteer Service:
2015 0.01 1,092,239 549,848 199.00 67.00
2016 0.01 1,231,115 503,886 247.43 61.70
2017 0.01 1,586,388 568,146 279.22 57.47
2018 0.01 1,649,603 636,590 259.13 61.49
2019 0.01 1,652,816 634,570 260.46 62.54
2020 0.01 1,750,782 648,159 270.12 61.59
2021 0.01 1,925,718 662,379 290.73 58.97
2015 Totals 15.24 % 1,850,037,000$ 931,333,441$ 199.00 % 67.00 %
2016 Totals 15.54 % 2,402,927,178$ 971,178,203$ 247.43 % 61.70 %
2017 Totals 15.81 % 2,824,552,261$ 1,011,579,899$ 279.22 % 57.47 %
2018 Totals 15.96 % 2,653,162,201$ 1,023,869,410$ 259.13 % 61.49 %
2019 Totals 15.93 % 2,649,318,090$ 1,017,162,190$ 260.46 % 62.54 %
2020 Totals 16.16 % 2,843,514,960$ 1,052,700,786$ 270.12 % 61.59 %
2021 Totals 16.13 % 3,123,010,235$ 1,074,205,666$ 290.73 % 58.97 %
See accompanying independent auditors' report.
129
Employer
Proportionate
share of
contributions
Required
contributions
Contribution
deficiency
(excess)
Actual
Covered-employee
payroll
Alcorn State University:
2015 4,487,694$ 4,487,694 — 28,493,295 15.75 %
2016 4,578,969 4,578,969 — 29,072,819 15.75
2017 4,612,758 4,612,758 — 29,287,352 15.75
2018 4,445,215 4,445,215 — 28,223,587 15.75
2019 4,363,103 4,363,103 — 27,702,241 15.75
2020 4,789,190 4,789,190 — 27,524,080 17.40
2021 4,286,010 4,286,010 — 24,632,241 17.40
Delta State University:
2015 2,664,943 2,664,943 — 16,920,273 15.75
2016 2,629,908 2,629,908 — 16,697,829 15.75
2017 2,650,434 2,650,434 — 16,828,152 15.75
2018 2,379,412 2,379,412 — 15,107,378 15.75
2019 2,725,784 2,725,784 — 17,306,565 15.75
2020 2,970,686 2,970,686 — 17,072,908 17.40
2021 3,051,947 3,051,947 — 17,539,925 17.40
Jackson State University:
2015 8,271,356 8,271,356 — 52,516,546 15.75
2016 8,653,220 8,653,220 — 54,941,079 15.75
2017 8,714,352 8,714,352 — 55,329,219 15.75
2018 8,294,334 8,294,334 — 52,662,438 15.75
2019 7,274,360 7,274,360 — 46,186,413 15.75
2020 7,808,898 7,808,898 — 44,878,724 17.40
2021 7,674,848 7,674,848 — 44,108,322 17.40
Mississippi State University:
2015 30,812,946 30,812,946 — 195,637,752 15.75
2016 32,082,720 32,082,720 — 203,699,810 15.75
2017 32,311,407 32,311,407 — 205,151,790 15.75
2018 31,045,339 31,045,339 — 197,113,263 15.75
2019 32,163,084 32,163,084 — 204,210,057 15.75
2020 36,670,189 36,670,189 — 210,748,213 17.40
2021 37,491,151 37,491,151 — 215,466,385 17.40
Mississippi University
for Women:
2015 2,243,470 2,243,470 — 14,244,254 15.75
2016 2,316,938 2,316,938 — 14,710,717 15.75
2017 2,333,680 2,333,680 — 14,817,016 15.75
2018 2,311,505 2,311,505 — 14,676,222 15.75
2019 2,267,113 2,267,113 — 14,394,367 15.75
2020 2,605,550 2,605,550 — 14,974,425 17.40
2021 2,593,446 2,593,446 — 14,904,862 17.40
State of Mississippi Institutions of Higher Learning
Mississippi Public Employees' Retirement System
Contribution
as a percentage
of covered-
employee
payroll
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Contributions to the
GASB 67 Paragraph 32(c)
June 30, 2021
130 (Continued)
Employer
Proportionate
share of
contributions
Required
contributions
Contribution
deficiency
(excess)
Actual
Covered-employee
payroll
Contribution
as a percentage
of covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Contributions to the
Mississippi Public Employees' Retirement System
GASB 67 Paragraph 32(c)
June 30, 2021
Mississippi Valley State
University:
2015 2,384,644$ 2,384,644 — 15,140,597 15.75 %
2016 2,491,943 2,491,943 — 15,821,860 15.75
2017 2,509,604 2,509,604 — 15,933,994 15.75
2018 2,536,037 2,536,037 — 16,101,822 15.75
2019 2,545,552 2,545,552 — 16,162,235 15.75
2020 2,823,856 2,823,856 — 16,229,057 17.40
2021 2,595,820 2,595,820 — 14,918,506 17.40
University of Mississippi:
2015 18,189,943 18,189,943 — 115,491,702 15.75
2016 18,587,600 18,587,600 — 118,016,508 15.75
2017 18,719,288 18,719,288 — 118,852,622 15.75
2018 19,505,230 19,505,230 — 123,842,730 15.75
2019 19,541,619 19,541,619 — 124,073,771 15.75
2020 21,929,628 21,929,628 — 126,032,345 17.40
2021 21,641,091 21,641,091 — 124,374,086 17.40
University of Southern
Mississippi:
2015 12,934,612 12,934,612 — 82,124,521 15.75
2016 13,009,957 13,009,957 — 82,602,902 15.75
2017 13,118,547 13,118,547 — 83,292,362 15.75
2018 13,456,220 13,456,220 — 85,436,317 15.75
2019 13,321,459 13,321,459 — 84,580,692 15.75
2020 13,777,396 13,777,396 — 79,180,437 17.40
2021 14,836,009 14,836,009 — 85,264,420 17.40
University of Mississippi
Medical Center:
2015 68,736,092 68,736,092 — 436,419,632 15.75
2016 71,818,771 71,818,771 — 455,992,197 15.75
2017 72,327,391 72,327,391 — 459,221,530 15.75
2018 73,927,567 73,927,567 — 469,381,378 15.75
2019 78,391,851 78,391,851 — 497,726,038 15.75
2020 88,706,272 88,706,272 — 509,806,161 17.40
2021 85,783,197 85,783,197 — 493,006,879 17.40
Executive Office:
2015 1,048,459 1,048,459 — 6,656,883 15.75
2016 959,854 959,854 — 6,094,311 15.75
2017 1,123,420 1,123,420 — 7,132,825 15.75
2018 1,068,031 1,068,031 — 6,781,148 15.75
2019 1,078,124 1,078,124 — 6,845,232 15.75
131 (Continued)
Employer
Proportionate
share of
contributions
Required
contributions
Contribution
deficiency
(excess)
Actual
Covered-employee
payroll
Contribution
as a percentage
of covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Contributions to the
Mississippi Public Employees' Retirement System
GASB 67 Paragraph 32(c)
June 30, 2021
2020 1,194,824$ 1,194,824 — 6,866,805 17.40 %
2021 1,138,221 1,138,221 — 6,541,500 17.40
Mississippi Commission
for Volunteer Service:
2015 78,708 78,708 — 499,733 15.75
2016 88,482 88,482 — 561,790 15.75
2017 89,025 89,025 — 565,238 15.75
2018 99,080 99,080 — 629,080 15.75
2019 100,856 100,856 — 640,356 15.75
2020 114,024 114,024 — 655,310 17.40
2021 107,124 107,124 — 615,655 17.40
2015 Totals 151,852,867$ 151,852,867 — 964,145,187 15.75 %
2016 Totals 157,218,362$ 157,218,362 — 998,211,822 15.75 %
2017 Totals 158,509,906$ 158,509,906 — 1,006,412,102 15.75 %
2018 Totals 159,067,970$ 159,067,970 — 1,009,955,364 15.75 %
2019 Totals 163,772,905$ 163,772,905 — 1,039,827,967 15.75 %
2020 Totals 183,390,513$ 183,390,513 — 1,053,968,466 17.40 %
2021 Totals 181,198,864$ 181,198,864 — 1,041,372,782 17.40 %
See accompanying independent auditors' report.
132
Employer
Proportionate
share of the
net pension
OPEB ($)
Covered-
employee
payroll
Alcorn State University:
2018 0.58 % 4,553,690$ 26,074,744$ 17.46 % 0.00 %
2019 0.57 4,425,422 25,875,362 17.10 0.00
2020 0.56 4,718,847 25,466,787 18.53 0.00
2021 0.55 4,285,131 26,537,344 16.15 0.00
Delta State University:
2018 0.41 3,212,943 18,397,530 17.46 0.00
2019 0.42 3,268,272 19,109,522 17.10 0.00
2020 0.42 3,556,677 19,194,756 18.53 0.00
2021 0.41 3,181,438 19,702,296 16.15 0.00
Jackson State University:
2018 1.01 7,923,756 45,371,973 17.46 0.00
2019 0.93 7,183,715 42,003,040 17.10 0.00
2020 0.87 7,374,236 39,797,448 18.53 0.00
2021 0.82 6,385,068 39,542,017 16.15 0.00
Mississippi State University:
2018 3.85 30,245,677 173,188,825 17.46 0.00
2019 3.84 29,735,714 173,864,154 17.10 0.00
2020 3.90 33,054,895 178,391,432 18.53 0.00
2021 3.98 31,009,098 192,035,910 16.15 0.00
Mississippi University
for Women:
2018 0.30 2,342,410 13,412,798 17.46 0.00
2019 0.31 2,364,085 13,822,757 17.10 0.00
2020 0.30 2,567,364 13,855,612 18.53 0.00
2021 0.31 2,421,117 14,993,708 16.15 0.00
Mississippi Valley State
University:
2018 0.40 3,175,395 18,182,528 17.46 0.00
2019 0.40 3,080,141 18,009,522 17.10 0.00
2020 0.39 3,314,930 17,890,090 18.53 0.00
2021 0.37 2,917,487 18,067,671 16.15 0.00
University of Mississippi:
2018 2.52 19,806,214 113,411,739 17.46 0.00
2019 2.62 20,248,697 118,393,742 17.10 0.00
2020 2.63 22,349,145 120,614,392 18.53 0.00
2021 2.67 20,806,654 128,853,307 16.15 0.00
University of Southern
Mississippi:
2018 1.79 14,037,705 80,380,864 17.46 0.00
Proportionate
share of the
net OPEB
liability (%)
Proportionate
share of the net
OPEB liability
as a percentage
of its covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net OPEB Liability of the
Mississippi State and School Employees' Life and Health Insurance Plan
GASB 74 Paragraph 36(a)
June 30, 2021
Plan fiduciary
net position as
a percentage of
the total OPEB
liability
133 (Continued)
Employer
Proportionate
share of the
net pension
OPEB ($)
Covered-
employee
payroll
Proportionate
share of the
net OPEB
liability (%)
Proportionate
share of the net
OPEB liability
as a percentage
of its covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net OPEB Liability of the
Mississippi State and School Employees' Life and Health Insurance Plan
GASB 74 Paragraph 36(a)
June 30, 2021
Plan fiduciary
net position as
a percentage of
the total OPEB
liability
2019 1.82 % 14,044,422$ 82,117,466$ 17.10 % 0.00 %
2020 1.80 15,274,063 82,431,424 18.53 0.00
2021 1.80 13,981,862 86,588,121 16.15 0.00
University of Mississippi
Medical Center:
2018 7.35 57,663,711 330,186,370 17.46 0.00
2019 7.34 56,789,549 332,047,403 17.10 0.00
2020 7.60 64,529,186 348,252,627 18.53 0.00
2021 7.76 60,353,305 373,761,386 16.15 0.00
Executive Office:
2018 0.09 712,832 4,081,723 17.46 0.00
2019 0.09 691,744 4,044,610 17.10 0.00
2020 0.09 759,685 4,099,885 18.53 0.00
2021 0.08 661,048 4,093,796 16.15 0.00
2018 Totals 18.31 % 143,674,333$ 822,689,094$ 17.46 % 0.00 %
2019 Totals 18.34 % 141,831,761$ 829,287,578$ 17.10 % 0.00 %
2020 Totals 18.56 % 157,499,028$ 849,994,451$ 18.53 % 0.00 %
2021 Totals 18.76 % 146,002,208$ 904,175,557$ 16.15 % 0.00 %
See accompanying independent auditors' report.
134
Employer
Contractually
required
contribution
Contributions in
relation to the
contractually
required
contribution
Contribution
deficiency
(excess)
Covered-
employee
payroll
Alcorn State University:
2018 253,468$ 179,174 74,294 26,074,744 0.69 %
2019 269,284 197,080 72,204 25,875,362 0.76
2020 258,131 189,145 68,986 25,466,787 0.74
2021 274,109 170,891 103,218 26,537,344 0.64
Delta State University:
2018 178,839 126,420 52,420 18,397,530 0.69
2019 198,872 145,548 53,324 19,109,522 0.76
2020 194,558 142,562 51,996 19,194,756 0.74
2021 203,509 126,876 76,633 19,702,296 0.64
Jackson State University:
2018 441,053 311,776 129,277 45,371,973 0.69
2019 437,124 319,917 117,207 42,003,040 0.76
2020 403,386 295,581 107,806 39,797,448 0.74
2021 408,437 254,637 153,800 39,542,017 0.64
Mississippi State University:
2018 1,683,539 1,190,076 493,462 173,188,825 0.69
2019 1,809,398 1,324,240 485,159 173,864,154 0.76
2020 1,808,173 1,324,937 483,236 178,391,432 0.74
2021 1,983,574 1,236,645 746,928 192,035,910 0.64
Mississippi University
for Women:
2018 130,383 92,167 38,217 13,412,798 0.69
2019 143,853 105,281 38,572 13,822,757 0.76
2020 140,440 102,907 37,533 13,855,612 0.74
2021 154,873 96,554 58,318 14,993,708 0.64
Mississippi Valley State
University:
2018 176,749 124,942 51,807 18,182,528 0.69
2019 187,424 137,170 50,255 18,009,522 0.76
2020 181,334 132,872 48,462 17,890,090 0.74
2021 186,624 116,350 70,275 18,067,671 0.64
University of Mississippi:
2018 1,102,456 779,315 323,141 113,411,739 0.69
2019 1,232,120 901,748 330,371 118,393,742 0.76
2020 1,222,546 895,819 326,727 120,614,392 0.74
2021 1,330,949 829,771 501,178 128,853,307 0.64
University of Southern
Mississippi:
2018 781,368 552,341 229,027 80,380,864 0.69
2019 854,594 625,449 229,144 82,117,466 0.76
Contributions as
a percentage of
covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Employer Contributions to the
Mississippi State and School Employees' Life and Health Insurance Plan
GASB 74 Paragraph 36(c)
June 30, 2021
135 (Continued)
Employer
Contractually
required
contribution
Contributions in
relation to the
contractually
required
contribution
Contribution
deficiency
(excess)
Covered-
employee
payroll
Contributions as
a percentage of
covered-
employee
payroll
State of Mississippi Institutions of Higher Learning
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Employer Contributions to the
Mississippi State and School Employees' Life and Health Insurance Plan
GASB 74 Paragraph 36(c)
June 30, 2021
2020 835,524$ 612,229 223,295 82,431,424 0.74 %
2021 894,384 557,598 336,787 86,588,121 0.64
University of Mississippi
Medical Center:
2018 3,209,684 2,268,893 940,791 330,186,370 0.69
2019 3,455,606 2,529,046 926,561 332,047,403 0.76
2020 3,529,884 2,586,518 943,366 348,252,627 0.74
2021 3,860,649 2,406,895 1,453,754 373,761,386 0.64
Executive Office:
2018 39,678 28,048 11,630 4,081,724 0.69
2019 42,092 30,806 11,286 4,044,612 0.76
2020 41,556 30,450 11,106 4,099,885 0.74
2021 42,286 26,363 15,923 4,093,796 0.64
2018 Totals 7,997,218$ 5,653,152 2,344,066 822,689,094 0.69 %
2019 Totals 8,630,368$ 6,316,285 2,314,083 829,287,578 0.76 %
2020 Totals 8,615,532$ 6,313,021 2,302,512 849,994,451 0.74 %
2021 Totals 9,339,393$ 5,822,581 3,516,812 904,175,557 0.64 %
See accompanying independent auditors' report.
136
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Required Supplementary Information (Unaudited)
June 30, 2021 and 2020
137
1. Net pension liability
(a) Schedule of Proportionate Share of the Net Pension Liability
This schedule presents historical trend information about the IHL System’s proportionate share of the net pension
liability for its employees who participate in the PERS. The net pension liability is measured as the total pension
liability less the amount of the fiduciary net position of the plan. Trend information will be accumulated to
display a ten-year presentation.
(b) Schedule of Proportionate Share of Contributions to the PERS defined benefit plan
The required contributions and percentage of those contributions actually made are presented in the schedule.
Trend information will be accumulated to display a ten-year presentation.
(c) Changes of Assumptions and in Benefit Provisions (pension plan)
Changes of assumptions:
2020
▪ The expectation of retired life mortality was changed to the PubS.H-2010(B) Retiree Table with the following
adjustments:
o For males, 112% of male rates from ages 18 to 75 scaled down to 105% for ages 80 to 119;
o For females, 85% of the female rates from ages 18 to 65 scaled up to 102% for ages 75 to 119; and
o Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
▪ The expectation of disabled mortality was changed to PubT.H-2010 Disabled Retiree Table for disabled
retirees with the following adjustments:
o For males, 137% of male rates at all ages;
o For females, 115% of female rates at all ages; and
o Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
▪ The price inflation assumption was reduced from 3.00% to 2.75%;
▪ The wage inflation assumption was reduced from 3.25% to 3.00%;
▪ Withdrawal rates, pre-retirement mortality rates, and service retirement rates were also adjusted to more
closely reflect actual experience; and
▪ The percentage of active member disabilities assumed to be in the line of duty was increased from 7% to 9%.
2018
▪ The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue Collar Mortality
Table projected with Scale BB to 2022;
▪ The wage inflation assumption was reduced from 3.75% to 3.25%;
▪ Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were also
adjusted to more closely reflect actual experience; and
▪ The percentage of active member disabilities assumed to be in the line of duty was increased from 6% to 7%.
2017
▪ The assumed rate of interest credited to employee contributions was changed from 3.50% to 2.00%.
2016
▪ The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue Collar Table
projected to 2016 using Scale BB rather than the RP-2000 Mortality Table, which was used prior to 2016;
▪ The expectation of disabled mortality was changed to the RP-2014 Disabled Retiree Table, rather than the
RP-2000 Disabled Mortality Table, which was used prior to 2016;
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
Notes to Required Supplementary Information (Unaudited)
June 30, 2021 and 2020
138
▪ Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were also
adjusted to more closely reflect actual experience;
▪ Assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience; and
▪ The price inflation and investment rate of return assumptions were changed from 3.50% to 3.00% and 8.00%
to 7.75%, respectively.
Change in benefit provisions:
2017
▪ Effective July 1, 2016, the interest rate on employee contributions shall be calculated based on the money
market rate as published by the Wall Street Journal on December 31 of each preceding year with a minimum
rate of one percent and a maximum rate of five percent.
2. Net OPEB liability
(a) Schedule of Proportionate Share of the Net OPEB Liability
This schedule presents historical trend information about the IHL System’s proportionate share of the net OPEB
liability for its employees who participate in the State and School Employees’ Life and Health Insurance Plan.
The net OPEB liability is measured as the total OPEB liability less the amount of the fiduciary net position of
the plan. Trend information will be accumulated to display a ten-year presentation.
(b) Schedule of Proportionate Share of Employer Contributions to the State and School Employees’ Life
and Health Insurance Plan
The required contributions and percentage of those contributions actually made are presented in the schedule.
Trend information will be accumulated to display a ten-year presentation.
(c) Changes of Assumptions and to Benefit Terms (OPEB plan)
Changes of assumptions:
2021
▪ The SEIR was changed from 3.50% for the prior measurement date to 2.19% to the current measurement
date.
2020
▪ The SEIR was changed from 3.89% for the prior measurement date to 3.50% to the current measurement
date.
2019
▪ The SEIR was changed from 3.56% for the prior measurement date to 3.89% to the current measurement
date.
Changes to benefit terms:
2021
▪ The schedule of monthly retiree contributions was increased as of January 1, 2021. In addition, the
deductibles and coinsurance maximums were increased for Select coverage, and the coinsurance
maximums were increased for the Base Coverage beginning January 1, 2021.
REPORT ON INTERNAL CONTROL AND COMPLIANCE
CLA is an independent member of Nexia International, a leading, global network of independent
accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
CliftonLarsonAllen LLP
CLAconnect.com
139
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Board of Trustees
State of Mississippi Institutions of Higher Learning
Jackson, Mississippi
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements
of the business-type
activities and the aggregate discretely presented component units of the State of Mississippi Institutions
of Higher Learning (the IHL System), as of and for the year ended June 30, 2021, and the related notes
to the financial statements, which collectively comprise the IHL System’s basic financial statements,
and have issued our report thereon dated December 20, 2021. Our report includes a reference to other
auditors who audited the financial statements of the Mississippi State University Foundation, Inc., the
University of Mississippi Foundation, the University of Mississippi Educational Building Corporation, the
University of Mississippi Medical Center Tort Claims Fund, the State Institutions of Higher Learning
Self-Insured Workers’ Compensation Fund, and the State Institutions of Higher Learning Tort Liability
Fund, as described in our report on State of Mississippi Institutions of Higher Learning’s financial
statements. This report does not include the results of the other auditors’ testing of internal control over
financial reporting or compliance and other matters that are reported on separately by those auditors.
The financial statements of the Mississippi State University Foundation, Inc., the University of
Mississippi Foundation, the University of Southern Mississippi Foundation, the University of Mississippi
Medical Center Tort Claims Fund, the State Institutions of Higher Learning Self-Insured Workers’
Compensation Fund, and the State Institutions of Higher Learning Tort Liability Fund were not audited
in accordance with Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the IHL System's
internal control over financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the IHL System’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the IHL System’s
internal control.
The Board of Trustees
State of Mississippi Institutions of Higher Learning
140
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the IHL System's financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Baltimore, Maryland
December 20, 2021
(THIS PAGE LEFT BLANK INTENTIONALLY)
COMPONENT UNIT ADDITIONAL INFORMATION
FOR INCLUSION IN THE STATE OF MISSISSIPPI
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(THIS PAGE LEFT BLANK INTENTIONALLY)
IHL System DFA reclass MSU UM USM Foundation
only entry Foundation Foundation Foundation eliminations Total
Assets
Current Assets:
Cash and cash equivalents $ 961,478,728 — 3,009,958 11,411,775 3,993,951 — 979,894,412
Short term investments 275,609,277 — 4,237,024 17,515,505 — — 297,361,806
Accounts receivable, net 371,148,587 (7,839,407) — — — — 363,309,180
Notes and pledges receivable, net 20,820,536 — 10,190,492 11,042,885 2,258,491 — 44,312,403
Due from other governments — 7,839,407 — — — — 7,839,407
Inventories 42,070,625 — — — — — 42,070,625
Prepaid expenses 26,286,239 — — — — — 26,286,239
Other current assets 11,059,112 — 300,604 — 1,344,573 — 12,704,289
Total current assets 1,708,473,104 — 17,738,078 39,970,165 7,597,015 — 1,773,778,361
Non-Current Assets:
Investments 624,208,898 — 175,519,375 133,306,107 29,953,434 — 962,987,814
Notes and pledges receivable, net 68,196,575 — 30,571,475 62,576,346 1,505,661 — 162,850,057
Restricted assets:
Cash and cash equivalents 140,763,573 — 3,301,191 — — — 144,064,764
Short term investments 1,411,114 — 4,000,000 — — — 5,411,114
Investments 403,568,629 — 510,583,283 465,608,575 120,759,639 (49,749,774) 1,450,770,352
Beneficial interest in irrevocable trust 43,991,738 — — — — — 43,991,738
Capital assets, net 4,460,199,426 — 13,157,746 1,971,997 1,567,480 — 4,476,896,649
Other noncurrent assets 2,619,339 — 59,215,668 13,093,287 14,608,988 — 89,537,282
Total noncurrent assets 5,744,959,292 — 796,348,738 676,556,312 168,395,202 (49,749,774) 7,336,509,770
Total assets 7,453,432,396 — 814,086,816 716,526,476 175,992,217 (49,749,774) 9,110,288,131
Deferred outflows of resources:
Deferred loss on refunding of debt 50,081,926 — — — — — 50,081,926
Pension related deferred outflows 393,866,820 — — — — — 393,866,820
OPEB related deferred outflows 32,723,147 — — — — — 32,723,147
Total deferred outflows of resources 476,671,893 — — — — — 476,671,893
Total assets and deferred outflows of resources $ 7,930,104,289 — 814,086,816 716,526,476 175,992,217 (49,749,774) 9,586,960,024
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Combining Schedule of Net Position
June 30, 2021
141 (Continued)
IHL System DFA reclass MSU UM USM Foundation
only entry Foundation Foundation Foundation eliminations Total
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Combining Schedule of Net Position
June 30, 2021
Liabilities and Net Position
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 319,381,944 (3,183,852) 9,917,767 — 1,066,276 — 327,182,135
Due to primary government — 3,183,852 — — — — 3,183,852
Unearned revenues 163,949,404 — — — — — 163,949,404
Bonds and notes payable 53,550,569 — — — — — 53,550,569
Lease obligations payable 1,576,201 — — — — — 1,576,201
Current portion of noncurrent liabilities 28,577,671 — — 254,598 24,934 — 28,857,203
Other current liabilities 170,158,839 — — 5,282,838 — — 175,441,677
Total current liabilities 737,194,628 — 9,917,767 5,537,436 1,091,210 — 753,741,041
Noncurrent liabilities:
Bonds and notes payable 1,160,838,823 — 2,941,285 — — — 1,163,780,108
Lease obligations payable 4,818,026 — — — — — 4,818,026
Net pension liability 3,123,010,235 — — — — — 3,123,010,235
Net OPEB liability 146,002,208 — — — — — 146,002,208
Other noncurrent liabilities 218,023,518 — 8,709,271 30,584,047 43,995 — 257,360,831
Total noncurrent liabilities 4,652,692,810 — 11,650,556 30,584,047 43,995 — 4,694,971,408
Total liabilities 5,389,887,438 — 21,568,323 36,121,483 1,135,205 — 5,448,712,449
Deferred inflows of resources:
Deferred inflows related to pension 26,357,950 — — — — — 26,357,950
Deferred inflows related to refundings 4,253,700 — — — — — 4,253,700
Deferred inflows related to OPEB 33,474,844 — — — — — 33,474,844
Beneficial interest in irrevocable trusts 43,991,738 — — — — — 43,991,738
Total deferred inflows of resources 108,078,232 — — — — — 108,078,232
Total liabilities and deferred inflows of resources $ 5,497,965,670 — 21,568,323 36,121,483 1,135,205 — 5,556,790,681
Net Position:
Net investment in capital assets $ 3,263,116,965 — 13,157,746 1,971,997 1,567,480 — 3,279,814,188
Restricted for:
Other purposes 374,397,093 — 310,876,807 377,335,525 74,794,220 — 1,137,403,645
Permanent endowments:
Nonexpendable 197,382,615 — 374,107,283 283,763,145 82,467,604 — 937,720,647
Unrestricted (1,402,758,054) — 94,376,657 17,334,326 16,027,708 (49,749,774) (1,324,769,137)
Total net position $ 2,432,138,619 — 792,518,493 680,404,993 174,857,012 (49,749,774) 4,030,169,343
See accompanying independent auditors' report.
142
Functions/programs Expenses
Charges for
services
Operating
grants and
contributions
Capital
grants and
contributions
IHL System
MSU
Foundation
UM
Foundation
USM
Foundation
Foundation
eliminations
Total
IHL System $ 3,826,894,842 2,321,554,598 470,910,604 59,089,143 $ (975,340,497) — — — — (975,340,497)
MSU Foundation 42,418,290 — 36,789,029 — — (5,629,261) — — — (5,629,261)
UM Foundation 76,182,472 — 34,992,831 — — — (41,189,641) — — (41,189,641)
USM Foundation 11,708,643 — 10,601,287 — — — — (1,107,356) — (1,107,356)
Total universities $ 3,957,204,247 2,321,554,598 553,293,751 59,089,143 (975,340,497) (5,629,261) (41,189,641) (1,107,356) — (1,023,266,755)
General revenues:
Interest and investment income 88,564,182 185,318,073 135,557,994 28,415,608 (9,384,986) 428,470,871
Other 394,384,267 — — — — 394,384,267
Payment from State of Mississippi 725,148,414 — — — — 725,148,414
Contributions to permanent endowments 403,128 31,889,190 11,458,036 7,079,328 — 50,829,682
Total general revenues and contributions 1,208,499,991 217,207,263 147,016,030 35,494,936 (9,384,986) 1,598,833,234
Change in net position $ 233,159,494 211,578,002 105,826,389 34,387,580 (9,384,986) $ 575,566,479
Net position - beginning of the year 3,454,602,864
Net position - end of the year $ 4,030,169,343
See accompanying independent auditors' report.
Net revenue (expense) and changes in net positionProgram revenues
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Combining Schedule of Activities
Year ended June 30, 2021
143
IHL System DFA reclass
only entry Total
Student tuition $ 123,448,342 — 123,448,342
Auxiliary enterprises and other operating
activities 38,999,209 — 38,999,209
Contributions and gifts 3,444,923 — 3,444,923
Federal, state, and private grants and contracts 133,915,346 1,599,792 135,515,138
State appropriations 9,439,199 (9,439,199) —
Accrued interest 3,496,719 — 3,496,719
Patient income 772,938,044 — 772,938,044
Other 19,352,279 — 19,352,279
Total accounts receivable 1,105,034,061 (7,839,407) 1,097,194,654
Less bad debt provision (731,779,630) — (731,779,630)
373,254,431 (7,839,407) 365,415,024
Less noncurrent portion (2,105,844) — (2,105,844)
Net accounts receivable $ 371,148,587 (7,839,407) 363,309,180
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Accounts Receivable Disclosure
June 30, 2021
144
Current Noncurrent
Interest rates Total Portion Portion
From students:
Perkins student loans 3% to 9% $ 39,089,174 10,371,061 28,718,113
Nursing student loans 3% to 9% 4,266,787 712,181 3,554,606
Other federal loans 3% to 9% 2,389,713 1,950,646 439,067
Institutional student loans 0% to 9% 63,945,112 10,732,813 53,212,299
Medical student loans 3% to 9% 335,512 36,069 299,443
Dental student loans 3% to 9% 288,420 148,796 139,624
Notes and pledges:
Foundations 122,582,031 24,520,508 98,061,523
Total notes and pledges receivable 232,896,749 48,472,074 184,424,675
Less allowance for doubtful accounts 25,734,289 4,159,670 21,574,619
Net notes and pledges receivable $ 207,162,460 44,312,403 162,850,057
Foundation notes and pledges, before allowance
for doubtful accounts:
MSU Foundation $ 41,648,570 10,412,143 31,236,428
UM Foundation 76,559,359 11,483,904 65,075,455
USM Foundation 4,374,102 2,624,461 1,749,641
$ 122,582,031 24,520,508 98,061,523
Summary of allowance for doubtful accounts:
IHL Universities $ 21,297,607 3,131,030 18,166,577
MSU Foundation 886,603 221,651 664,952
UM Foundation 2,940,129 441,019 2,499,110
USM Foundation 609,950 365,970 243,980
$ 25,734,289 4,159,670 21,574,619
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Notes and Pledges Receivable Disclosure
June 30, 2021
145
Cost
basis
Accumulated
depreciation
Net book
value
Jackson State University $ 1,590,638 580,258 1,010,380
University of Mississippi Medical Center 7,291,349 1,105,573 6,185,776
$ 8,881,987 1,685,831 7,196,156
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Assets Under Capital Lease Disclosure
June 30, 2021
146
Balance
June 30,
2020
Additions
Deletions/
transfers
Balance
June 30,
2021
Nondepreciable Capital Assets:
Land $ 116,590,669 3,496,057 (3,282,364) 116,804,362
Construction in progress 439,447,205 120,433,053 (269,411,344) 290,468,914
Livestock 1,519,321 67,939 (455,419) 1,131,841
Total nondepreciable
capital assets 557,557,195 123,997,049 (273,149,127) 408,405,117
Depreciable capital assets:
Improvements other than buildings 513,252,402 10,627,172 — 523,879,574
Buildings 4,524,478,488 259,599,002 (9,449,609) 4,774,627,881
Equipment 939,573,010 61,649,417 (21,573,322) 979,649,105
Library books 451,722,303 11,133,763 (652,822) 462,203,244
Total depreciable capital assets 6,429,026,203 343,009,354 (31,675,753) 6,740,359,804
Total capital assets 6,986,583,398 467,006,403 (304,824,880) 7,148,764,921
Less accumulated depreciation for:
Improvements other than buildings 211,618,468 15,703,928 (170,249) 227,152,147
Buildings 1,211,863,279 87,205,980 (524,601) 1,298,544,658
Equipment 702,381,551 56,126,061 (18,487,652) 740,019,960
Library books 393,940,066 12,860,448 (649,007) 406,151,507
Total accumulated
depreciation 2,519,803,364 171,896,417 (19,831,509) 2,671,868,272
N
et capital assets $ 4,466,780,034 295,109,986 (284,993,371) 4,476,896,649
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Capital Assets Disclosure
Year ended June 30, 2021
147
Funded by
Cost to
complete
Federal
sources
State
sources
Institutional
funds Other
Alcorn State University $ 25,996,835 — 25,996,835 — —
Delta State University 5,713,746 — 5,713,746 — —
Jackson State University 20,962,401 — 20,962,401 — —
Mississippi State University 136,795,725 9,861,893 43,668,707 55,889,502 27,375,623
Mississippi University for Women 15,215,900 — 15,215,900 — —
Mississippi Valley State University 4,947,530 456,393 4,491,137 — —
University of Mississippi 208,274,000 — 71,627,000 85,147,000 51,500,000
University of Southern Mississippi 27,867,506 7,000,000 15,807,619 5,059,887 —
University of Mississippi Medical Center 20,970,971 834,698 13,963,742 6,172,531 —
Totals $ 466,744,614 18,152,984 217,447,087 152,268,920 78,875,623
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Construction Commitments and Financing Disclosure
June 30, 2021
148
Balance
June 30, 2020
Additions Deletions
Balance
June 30, 2021
Due within
one year
Bonded deb
t
$ 1,226,183,775 158,125,000 180,687,210 1,203,621,565 51,823,969
Notes payable 12,559,112 2,941,285 1,791,285 13,709,112 1,726,600
1,238,742,887 161,066,285 182,478,495 1,217,330,677 53,550,569
Capital lease obligations 650,067 7,405,000 1,660,840 6,394,227 1,576,201
Other long-term liabilities:
Net pension liability 2,843,514,960 279,495,275 — 3,123,010,235 —
Net OPEB liability 157,499,028 — 11,496,820 146,002,208 —
Accrued leave liabilit
y
145,397,987 1,044,169 5,420,077 141,022,079 18,133,551
Deposits refundable 1,834,844 1,113,905 1,261,307 1,687,442 —
Funds held in trust for others 22,156,192 4,629,792 — 26,785,984 254,598
Other noncurrent liabilities 127,259,447 1,963,538 12,500,456 116,722,529 10,469,054
Total other long-term liabilities 3,297,662,458 288,246,679 30,678,660 3,555,230,477 28,857,203
Total $ 4,537,055,412 456,717,964 214,817,995
$
4,778,955,381 83,983,973
Due within one year (83,983,973)
Total long-term liabilities
$
4,694,971,408
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Long-Term Liabilities Disclosure (Rollforward)
Year ended June 30, 2021
149
Bonded Bonded debt Notes Notes payable Capital Capital lease Total
Total debt interest payable interest leases interest interest
IHL System Universities Only:
2022 $ 105,685,943 51,823,970 46,147,823 5,269,979 782,398 1,576,201 85,572 47,015,793
2023 104,867,762 52,787,135 44,358,884 5,615,647 436,730 1,606,791 62,575 44,858,189
2024 104,933,474 54,828,970 42,390,398 5,732,870 319,508 1,622,639 39,089 42,748,995
2025 101,738,864 53,750,366 40,332,383 5,853,269 199,108 1,588,596 15,142 40,546,633
2026 97,541,644 55,809,399 38,145,795 3,500,411 86,039
—
—
38,231,834
2027 - 2031 449,054,575 291,975,660 155,379,278 1,654,551 45,086
—
—
155,424,364
2032 - 2036 383,092,232 286,227,387 96,864,845
—
—
—
—
96,864,845
2037 - 2041 258,125,754 205,039,810 53,085,944
—
—
—
—
53,085,944
2042 - 2046 155,226,274 135,388,197 19,838,077
—
—
—
—
19,838,077
2047 - 2051 16,707,671 15,990,671 717,000
—
—
—
—
717,000
$ 1,776,974,193 1,203,621,565 537,260,427 27,626,727 1,868,869 6,394,227 202,378 539,331,674
Alcorn State University:
2022 $ 3,116,062 1,422,512 1,693,550
—
—
—
—
1,693,550
2023 3,176,437 1,527,512 1,648,925
—
—
—
—
1,648,925
2024 3,227,712 1,627,512 1,600,200
—
—
—
—
1,600,200
2025 3,285,012 1,752,512 1,532,500
—
—
—
—
1,532,500
2026 3,338,637 1,887,512 1,451,125
—
—
—
—
1,451,125
2027 - 2031 16,914,185 11,077,560 5,836,625
—
—
—
—
5,836,625
2032 - 2036 17,690,742 14,336,992 3,353,750
—
—
—
—
3,353,750
2037 - 2041 12,886,025 12,030,000 856,025
—
—
—
—
856,025
$ 63,634,812 45,662,112 17,972,700
—
—
—
—
17,972,700
Delta State University:
2022 $ 1,080,850 610,000 470,850
—
—
—
—
470,850
2023 1,078,550 620,000 458,550
—
—
—
—
458,550
2024 1,086,100 650,000 436,100
—
—
—
—
436,100
2025 907,350 500,000 407,350
—
—
—
—
407,350
2026 906,725 525,000 381,725
—
—
—
—
381,725
2027 - 2031 4,545,000 3,015,000 1,530,000
—
—
—
—
1,530,000
2032 - 2036 4,541,600 3,650,000 891,600
—
—
—
—
891,600
2037 - 2041 2,732,300 2,575,000 157,300
—
—
—
—
157,300
$ 16,878,475 12,145,000 4,733,475
—
—
—
—
4,733,475
Jackson State University:
2022 $ 8,840,629 4,690,376 4,009,934
—
—
121,201 19,118 4,029,052
2023 9,821,179 5,885,376 3,795,483
—
—
126,791 13,529 3,809,012
2024 9,784,872 6,090,376 3,554,176
—
—
132,639 7,681 3,561,857
2025 9,678,548 6,305,376 3,303,012
—
—
68,596 1,564 3,304,576
2026 9,576,665 6,535,376 3,041,289
—
—
—
—
3,041,289
2027 - 2031 44,535,877 33,371,880 11,163,997
—
—
—
—
11,163,997
2032 - 2036 27,828,944 23,361,880 4,467,064
—
—
—
—
4,467,064
2037 - 2041 5,863,760 3,626,880 2,236,880
—
—
—
—
2,236,880
2042 - 2046 4,792,414 3,159,519 1,632,895
—
—
—
—
1,632,895
$ 130,722,888 93,027,039 37,204,730
—
—
449,227 41,892 37,246,622
Mississippi State University:
2022 $ 27,104,980 14,348,457 12,756,523
—
—
—
—
12,756,523
2023 26,773,541 14,545,103 12,228,438
—
—
—
—
12,228,438
2024 26,544,934 14,899,553 11,645,381
—
—
—
—
11,645,381
2025 24,102,963 13,053,348 11,049,615
—
—
—
—
11,049,615
2026 23,875,744 13,403,753 10,471,991
—
—
—
—
10,471,991
2027 - 2031 108,040,866 64,216,439 43,824,427
—
—
—
—
43,824,427
2032 - 2036 97,721,352 68,139,535 29,581,817
—
—
—
—
29,581,817
2037 - 2041 81,936,982 66,090,530 15,846,452
—
—
—
—
15,846,452
2042 - 2046 47,187,296 43,884,964 3,302,332
—
—
—
—
3,302,332
$ 463,288,658 312,581,682 150,706,976
—
—
—
—
150,706,976
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Debt Service Disclosure (IHL System Only, by Institution)
June 30, 2021
150
(Continued)
Bonded Bonded debt Notes Notes payable Capital Capital lease Total
Total debt interest payable interest leases interest interest
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Debt Service Disclosure (IHL System only, by Institution)
June 30, 2021
Mississippi Valley State University:
2022 $ 1,262,906 725,000 537,906
—
—
—
—
537,906
2023 1,089,506 575,000 514,506
—
—
—
—
514,506
2024 1,122,256 625,000 497,256
—
—
—
—
497,256
2025 1,156,631 675,000 481,631
—
—
—
—
481,631
2026 1,189,756 725,000 464,756
—
—
—
—
464,756
2027 - 2031 6,519,388 4,570,000 1,949,388
—
—
—
—
1,949,388
2032 - 2036 7,566,088 6,525,000 1,041,088
—
—
—
—
1,041,088
2037 - 2041 1,654,813 1,595,000 59,813
—
—
—
—
59,813
$ 21,561,344 16,015,000 5,546,344
—
—
—
—
5,546,344
University of Mississippi:
2022 $ 23,256,684 12,837,878 8,423,349 1,726,600 268,857
—
—
8,692,206
2023 23,049,822 13,056,458 7,997,907 1,773,371 222,086
—
—
8,219,993
2024 23,111,446 13,611,458 7,504,530 1,821,133 174,325
—
—
7,678,855
2025 23,182,028 14,256,458 6,930,113 1,870,745 124,712
—
—
7,054,825
2026 23,222,439 14,917,220 6,309,761 1,921,427 74,031
—
—
6,383,792
2027 - 2031 99,605,460 76,331,144 21,574,679 1,654,551 45,086
—
—
21,619,765
2032 - 2036 62,542,367 54,303,445 8,238,922
—
—
—
—
8,238,922
2037 - 2041 15,110,319 12,007,094 3,103,225
—
—
—
—
3,103,225
2042 - 2046 9,554,176 8,489,926 1,064,250
—
—
—
—
1,064,250
$ 302,634,741 219,811,081 71,146,736 10,767,827 909,097
—
—
72,055,833
University of Southern Mississippi:
2022 $ 13,246,281 7,025,030 6,221,251
—
—
—
—
6,221,251
2023 12,095,546 6,097,947 5,997,599
—
—
—
—
5,997,599
2024 12,289,393 6,514,927 5,774,466
—
—
—
—
5,774,466
2025 12,475,155 6,937,129 5,538,026
—
—
—
—
5,538,026
2026 12,582,239 7,304,230 5,278,009
—
—
—
—
5,278,009
2027 - 2031 64,448,162 42,747,162 21,701,000
—
—
—
—
21,701,000
2032 - 2036 57,969,502 46,336,352 11,633,150
—
—
—
—
11,633,150
2037 - 2041 27,369,552 23,460,764 3,908,788
—
—
—
—
3,908,788
2042 - 2046 9,193,808 8,708,458 485,350
—
—
—
—
485,350
$ 221,669,638 155,131,999 66,537,639
—
—
—
—
66,537,639
University of Mississippi
Medical Center:
2022 $ 27,777,551 10,164,717 12,034,460 3,543,379 513,541 1,455,000 66,454 12,614,455
2023 27,783,181 10,479,739 11,717,476 3,842,276 214,644 1,480,000 49,046 11,981,166
2024 27,766,761 10,810,144 11,378,289 3,911,737 145,183 1,490,000 31,408 11,554,880
2025 26,951,177 10,270,543 11,090,136 3,982,524 74,396 1,520,000 13,578 11,178,110
2026 22,849,439 10,511,308 10,747,139 1,578,984 12,008
—
—
10,759,147
2027 - 2031 104,445,637 56,646,475 47,799,162
—
—
—
—
47,799,162
2032 - 2036 107,231,637 69,574,183 37,657,454
—
—
—
—
37,657,454
2037 - 2041 110,572,003 83,654,542 26,917,461
—
—
—
—
26,917,461
2042 - 2046 84,498,580 71,145,330 13,353,250
—
—
—
—
13,353,250
2047 - 2051 16,707,671 15,990,671 717,000
—
—
—
—
717,000
$ 556,583,637 349,247,652 183,411,827 16,858,900 959,772 5,945,000 160,486 184,532,085
See accompanying independent auditors' report.
151
Bonde
d
Bonded deb
t
Notes Notes payable Capital Capital lease Total
Total debt interest payable interest leases interest interest
IHL System Universities Only:
2022 $ 105,685,943 51,823,970 46,147,823 5,269,979 782,398 1,576,201 85,572 47,015,793
2023 104,867,762 52,787,135 44,358,884 5,615,647 436,730 1,606,791 62,575 44,858,189
2024 104,933,474 54,828,970 42,390,398 5,732,870 319,508 1,622,639 39,089 42,748,995
2025 101,738,864 53,750,366 40,332,383 5,853,269 199,108 1,588,596 15,142 40,546,633
2026 97,541,644 55,809,399 38,145,795 3,500,411 86,039 — — 38,231,834
2027 - 2031 449,054,575 291,975,660 155,379,278 1,654,551 45,086 — — 155,424,364
2032 - 2036 383,092,232 286,227,387 96,864,845 — — — — 96,864,845
2037 - 2041 258,125,754 205,039,810 53,085,944 — — — — 53,085,944
2042 - 2046 155,226,274 135,388,197 19,838,077 — — — — 19,838,077
2047 - 2051 16,707,671 15,990,671 717,000 — — — — 717,000
$ 1,776,974,193 1,203,621,565 537,260,427 27,626,727 1,868,869 6,394,227 202,378 539,331,674
See accompanying independent auditors' report.
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Debt Service Disclosure (IHL System only, Combined)
June 30, 2021
152
Balance
Ori
g
ina
l
Outstandin
g
Interest Maturit
y
issue June 30, 2021 rate date
Alcorn State University:
Bonds:
EBC - Series 2016 $ 43,630,000 45,662,112 2.00% – 5.00% 09/2039
43,630,000 45,662,112
Delta State University:
Bonds:
EBC - Series 2016 15,105,000 12,145,000 2.00% – 5.00% 12/2038
15,105,000 12,145,000
Jackson State University:
Bonds:
EBC - Series 1982 4,000,000 — 1.00% – 3.00% 12/2020
EBC - Series 2015A 57,595,000 58,852,039 2.00% – 5.00% 03/2045
EBC - Series 2015B 13,065,000 — 0.69% – 2.60% 03/2021
EBC - Series 2017 6,000,000 6,000,000 3.38 % 08/2027
EBC - Series 2017A 29,745,000 28,175,000 1.60% – 3.70% 03/2034
110,405,000 93,027,039
N
otes:
Housing projec
t
2,222,000 — 3.00 % 12/2021
Mississippi State University:
Bonds:
Dormitory bond
s
2,250,000 — 3.00 % 12/2021
Student apartments 2,038,000 90,000 3.00 % 12/2022
EBC - Series 2011 54,370,000 1,337,415 2.00% – 5.00% 12/2042
EBC - Series 2013 60,470,000 8,927,032 2.00% – 5.00% 08/2043
EBC - Series 2014A 89,810,000 71,457,702 2.00% – 5.00% 08/2043
EBC - Series 2014B 23,435,000 17,300,000 0.29% – 4.81% 08/2043
EBC - Series 2015 56,010,000 53,653,816 2.00% – 5.00% 08/2045
EBC - Series 2017 63,270,000 62,837,486 2.00% – 5.00% 08/2045
EBC - Series 2017A 92,075,000 96,978,231 2.00% – 5.00% 08/2043
443,728,000 312,581,682
Mississippi Valley State University:
Bonds:
EBC - Series 2007 19,015,000 165,000 4.00 % 03/2022
EBC - Series 2015 17,270,000 15,850,000 2.00 % 03/2037
36,285,000 16,015,000
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Bonds and Notes Payable Disclosure
June 30, 2021
153 Continued
Balance
Original Outstanding Interest Maturity
issue June 30, 2021 rate date
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Bonds and Notes Payable Disclosure
June 30, 2021
University of Mississippi:
Bonds:
EBC - Series 2009B 24,165,000 — 3.623% – 5.00% 10/2020
EBC - Series 2011 27,995,000 2,289,808 3.00% – 5.00% 10/2031
EBC - Series 2013D 12,100,000 — 3.10% 11/2020
EBC - Series 2015A 15,660,000 14,739,785 2.00% – 4.00% 11/2039
EBC - Series 2015B 10,125,000 6,555,000 1.375% – 3.75% 11/2029
EBC - Series 2015C 31,630,000 30,189,191 2.00% – 5.00% 11/2045
EBC - Series 2015D 17,660,000 14,150,000 0.993% – 4.452% 11/2035
EBC - Series 2016A 33,245,000 26,599,360 2.00% – 5.00% 10/2033
EBC - Series 2017 38,995,000 39,294,059 2.00% – 5.00% 10/2034
EBC - Series 2019A 73,350,000 83,513,878 3.00% – 5.00% 10/2035
EBC - Series 2019B 3,365,000 2,480,000 1.94% – 2.05% 10/2023
288,290,000 219,811,081
N
otes:
Hancock Bank 9,500,000 5,058,598 2.59 % 06/2026
Renasant Bank 8,000,000 5,709,229 2.745 % 06/2028
Trustmark Ban
k
17,783,300 — LIBOR + 1.39 06/2033
35,283,300 10,767,827
University of Southern Mississippi:
Bonds:
SMEBC - Series 2013 51,875,000 7,255,347 2.00% – 5.00% 09/2043
SMEBC - Series 2015A 38,600,000 34,449,289 2.00% – 5.00% 03/2034
SMEBC - Series 2015B 16,690,000 5,175,000 0.50% – 3.25% 03/2034
SMEBC - Series 2016 58,870,000 64,091,737 2.00% – 5.00% 09/2039
SMEBC - Series 2017 44,005,000 44,160,626 2.00% – 5.00% 09/2043
210,040,000 155,131,999
University Medical Center:
Bonds:
MCEBC - Series 1998B 41,075,000 11,240,000 3.88% – 5.90% 12/2023
MCEBC - Series 2010B 20,000,000 — 6.843% 06/2035
MCEBC - Series 2012A 51,860,000 — 4.00% – 5.00% 06/2041
MCEBC - Series 2012B 53,390,000 — 4.064% – 4.822% 06/2038
MCEBC - Series 2017A 137,635,000 148,467,653 3.00% – 5.00% 06/2047
MCEBC - Series 2017B 12,345,000 6,755,000 2.45% – 3.10% 06/2024
MCEBC - Series 2019 24,380,000 28,004,999 5.00% 06/2035
MCEBC - Series 2020B 158,125,000 154,780,000 0.445% – 2.917% 06/2041
498,810,000 349,247,652
N
otes:
University of Mississippi 8,336,907 13,110,888 2.00% 06/2026
University of Mississippi 3,748,012 3,748,012 0.93% 06/2026
12,084,919 16,858,900
Total $ 1,695,883,219 1,231,248,292
154
Functional Classification
Salaries
and wages
Fringe
benefits Travel
Contractual
services Utilities
Scholarships
and
fellowships Commodities
Depreciation
expense Other
Total
Instruction $ 484,671,310 173,492,961 1,123,377 32,944,797 338,016 1,022,691 14,426,219 — 257,431 708,276,802
Research 174,578,933 70,414,216 1,046,940 61,033,489 3,753,742 1,290,452 27,340,954 — 542,311 340,001,037
Public Service 85,434,381 33,227,875 1,105,395 36,921,619 1,111,505 59,885 13,836,364 — 69,247 171,766,271
Academic Support 82,608,820 29,040,664 234,788 32,917,809 472,678 262,801 22,409,869 — 57,237 168,004,666
Student Services 48,430,090 17,403,664 2,222,701 14,798,511 210,009 814,941 6,357,818 — 319,157 90,556,891
Institutional Support 140,884,098 68,453,014 385,588 129,849,408 557,316 476,238 32,296,222 — 4,297,092 377,198,976
Operation of Plant 49,504,802 21,154,223 40,767 47,778,617 44,672,417 — 20,216,158 — 96,534 183,463,518
Student Aid 2,305,237 6,335,675 27,010 300,076 — 226,639,095 699,313 — 148,118 236,454,524
Auxiliary Enterprises 84,912,094 27,172,828 9,914,896 77,752,585 12,533,867 25,317,139 15,201,455 — 152,839 252,957,703
Depreciation — — — — — — — 171,812,650 — 171,812,650
Hospital 522,686,124 184,817,078 194,503 127,304,456 1,047,628 — 309,334,001 — — 1,145,383,790
Loan Fund expenses — — — 324,728 — — — — 1,277,405 1,602,133
Interest — — — — — — — — (36,587,673) (36,587,673)
Inter-campus eliminations — — — (52,851,990) — (34,056,997) — — — (86,908,987)
Total operating expenses $ 1,676,015,889 631,512,198 16,295,965 509,074,105 64,697,178 221,826,245 462,118,373 171,812,650 (29,370,302) 3,723,982,301
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNING
State of Mississippi Component Unit Additional Information
Schedule of Functional Expenses Disclosure
Year ended June 30, 2021
155
