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LOUISLVNA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER

IN NEW ORLE ANS/TULANE HEALTH SCIENCES CENTER

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT CERTIFIED PUBUC ACCOUNTANTS

June 30,2010

Under provisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the LegisIativeAuditor and, where appropriate, at the office of the parish cleri< of court.

Release Date

TABLE OF CONTENTS

Page

FINANCIAL SECnON

Independent Auditor's Report - 1

Statement of Financial Position 3

Statement of Activities 4

Statement of Cash Flows 5

Notes to Financial Statements 6

SUPPLEMENTAL INFORMATION

Sdhedule of Revenues and Expenses by Program 15

REPORT REQUIRED BY GOVERNMENTAVDJUNG STANBAJRDS

Independent Auditor's Report on Internal Control over Financial Reporting and on CompUance and Other Matters Based on an Audit ofthe Financial Statements Perfomied in Accordance with Govemment Auditing Standards 16

Schedule of Findii^ and Questioned Costs 18

Summary Schedule ofPrior Audit Findings 19

Corrective Action Plan 20

OTHER SUPPLEMENTARY INFORMATION REQUIRED BY IHE STATE OF LOUISIANA ....: :. 21

FINANCIAL SECTION

REBOWE & COMPANY CERTIFIED PUBLIC ACCOUNTANTS

CONSULTANTS

A PROFESSIONAL CORPORATION

3501 N. Causeway Blvd. • Suita 810 • P.O. Box 6952 • Metairie, LA 70009 Phone (504) 837-9116 • Fax (504) 837-0123 • www.rebovra.com

INDEPENDENT AUDITOR'S REPORT

Board of Directors Louisiana Cancer Research Center of L.S.U. Health Sciences Center

in New Orleans/Tolane HeaMi Sciences Center New Orleans, Louisiana

We have audited the accompanying Statement of Financial Position of Louisiana Cancer Research Center of L.S.U Health Sciences Center in New Orleans/Tulane Health Sciences Center (a non-profit organization) (the "Research Center") as of June 30,2010, and the related Statement of Activities and Cash Flows for the year then ended. Ihiese financial statements are the responsibiUty of the Research Center's management Our responsibility is to express an opimon on these financial statements based on our audit The prior year sunmiarized comparative information has been derived from the Research Center's 2009 financial statements and, in our report dated August 18,2009, we expressed an unqualified opimon on those financial statements.

We conducted our audit in accordance with auditing standards generally accepted m the United States of America and the standards ^jplicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about ^^^ether the financial statements are fiee of material misstatement An audit includes examining, on a test basis, evidence si yporting tiie amounts and disclosures in Ihe financial statements. An audit also includes assessing tiie accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentatioiL We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Louisiana Cancer Research Center of L.S.U. Health Sciences Center in New Orleans/Tulane Health Sdences Center as of June 30,2010 and the changes in its net assets and its cash fiows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Govemment Auditing Standards, we have also issued our report dated August 27, 2010 on our consideration of Louisiana Cancer Research Center of L.S.U. Health Sciences Center in New Orieans/Tulane Health Sciences Center's internal control over financial rqwrting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing

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of interoal control over financial reporting and compliance and the results of that testmg and not to provide an opiaion on the internal control over financial reporting or on compliance. The report is an integral part of an audit perfonned in accordance with Govemment Auditing Standards and should be considered in assessmg the results of our audit

Our audits were performed for tiie purpose of forming opinions on the basic financial statements of I^ouisiana Cancer Research Center of L.S.U. Healtii Sciences Center in New Orleans/Tulane Health Sciences Center taken as a whole. The acconrpanying Schedule of Revenues and Expenses by Program for the year ended June 30,2010 and the other supplementary infomiation required by the State of Louisiana is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures ^^lied in the audit of the basic financial statements and, in our opinion, is l^iiiy staled, in all material respects, in relation to the basic financial statements taken as a whole.

August 27,2010

LOUISIANA CANCER RESEARCH CENTER OF L.S.U- HEALTH SCIENCES CENTER

IN NEW ORLEANSnrULANE HEALTH SCIENCES CENTER STATEMENT OF FINANCIAL POSHION

June 30,2010 (with comparative totals for 2009)

2010 2009

Current Assets Cash Investments Receivables' Grants Otiier

Prepaid ejqpenses

Total Current Assets

Property and equipment - net Construction in progress

Total Assets

ASSETS

$

$

14,260,618 11,096,674

10,831,774 26,799

-

36,215,865

2,698,437 39392,109

78306,411

$

$

15,932,850 11,005,528

10,637,162 4,678

20,000

37,600,218

3,086,660 11,533,070

52,219,948

IlABHJrnES AND NET ASSETS Current Liabilities

Accounts payable Construction payables Accrued Uabilities

Total Current Liabilities

Net Assets Unrestricted Temporarily restricted

Total Net Assets

Total Liabilities and Net Assets

$ 3,097,??? 3,617,634

65,991

6,780,847

1,021,250 70,504314

71,525,564

$ 78306,411

$ 4,635,901 1,931348

61379

6,628,628

796,753 44,794,567

45,591320

$ 52,219,948

See accompanying notes to the financial statements.

LOUISIANA CANCER RESEARCH CENTER OF 3US.U. HEALTH SCIENCES CENTER

BV NEW ORLEANS/TULANE HEALTH SCIENCES CENTER STATEMENT OF ACliVlTIES

For the Year Ended June 30,2010 (with comparative totals for 2009)

OHERATING REVENUE Grants Fund raising hiterest Net assets rdeased

from lestrictioos

Total

OPERATESTG EXPENSES Cessation e3q}enses Salaries and related expenses Si^plies Depreciation ejqpense Operatk^ services Professional services Travel Other expenses Fund raising e qpenses Maikedng Business expeoses

Total

OFERATJNG INCOME

NONOFERAUNG REVENUES Investment income Net change in unrealized

gain on in>«stmeiits

Total

INUtE ASE I N N E T ASSETS

Net Assets, B^inmng of Year

Net Assets, End of Year

Unrestricted

$ 224,497

-

17.538.114

17,762,611

7,699,656 6,151,439 1,779,879

667;296 586368 261,471 170,916 116,964 54.096 31,502 18,527

17,538,114

224.497

-

-

224,497

796,753

$ 1,021,250

Temporarily Restricted

$ 43,203,249 -

29,736

(17,538.114)

25,694.871

-----------

25.694.871

14,876

-

14,876

25,709,747

44,794.567

$ 70,504314

Totals 2010

$ 43,203,249 $ 224,497 29,736

-

43,457.482

7,699,656 6,151,439 1,779,879

667,296 586368 261,471 170,916 116,964 54,096 31,502 18,527

17,538.114

25.919368

14,876

-

14.876

25,934,244

45,591320

$ 71,525.564 $

2009

21322,915 261.614 115,479

-

21.900.008

7,130.409 6,676,728 2.158,817

600,255 537,142 292,725 174,249 53,761

. 58344 107,856 21,144

17,811,430

4.088.578

175,102

3355

178,457

4,267,035

41324385

45391,320


LOUISIANA CANCER RESEARCH CENTER OF L-S-U. HEALTH SCIENCES CENTER

IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER STATEMENT OF CASH FLOWS For tbe Year Ended June 30,2010 (with comparative totals for 2009)

CASH FLOWS FROM OPERATING ACiiVlTlES Grant revenue Interest income Other iiu»me

Payments to enq>Ioyee5 and suppliers and for research expenses

Net Cash Provided by Operating Activities

CASH FLOWS FROM INVESTING ACTIVmES

Acquisition of property and equipment Construction e?q}en5es Investment income Purchase of investments Sale of investments

Net Cash Used in Investing Activities

Net Increase (Decrease) in ( ash and Cash Equivalents

Cash, and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year

RECONCILIAXIGN OF INCREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACilVlIXES

Operating income

Adjustments to Keccmdle hicrcase in Net Assets Provided by Operating Activities:

Dqpreciation expoise (Increase) Deoease in Operating Assets:

Keceivables Prepaid expenses

Increase in Operating Liabilities: Accounts payable and accrued liabilities

Total Adjustments

NET CASH PROVIDED BY OPERATING AcnvrnES

2010

667396

(216,733) 20.000

152319

622,782

2009

$ 43,008,637 29.736

224.497 43362,870

(16,720.720)

26,542,150

(279,073) (27.859,039)

14.876 (21,605,750)

21,514.603

(28314383)

(1,672333)

15.932,850

$ 14360.617

$ 25.919368

$ 20.553,457 115,479 261,614

20,930,550

(12,814,778)

8,115,772

(41637,6) (5333,363)

175,102 (34,131,444)

33,956,342

(5.649,589)

2,466.183

13,466,667

$ 15,932,850

$ 4,088.578

600355

(974.136) 342

4,400,733

4,027,194

$ 26,542,150 $ 8,115,772


LOUISIANA CANCER RESEARCH CENTER OF LJS.U. HEALTH SCIENCES CENTER

IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER NOTES TO FINANCIAL STATEMENTS

June 30,2010

NOTE A - SUMMARY OF ACCOUNTING P O U d E S

A summary ofthe Research Center^s signiQcant accounting policies consistendy ^>plied in the preparation ofthe accompanying financial statements follows:

Nature of Activities

Louisiana Cancer Research Center of L.S.U. Health Sciences Center in New Orleans/Tulane Health Sciences Center (the "Research Center^ was incorporated June 7,2002 under the laws of &e State of Louisiana. The Research Onter is a not-for-profit organization that is exempt from income taxes under Section 501(c)(3) of the Intemal Revenue Code, and qualifies as an organization that is not a private foundation as defined in Section 509(a) of tiie Code. It is exempt fix>m Louisiana income tax under the authority of R.S. 47:121(5).

The Researdi Center was orgaruzed for charitable, educational and scientific purposes. The primary purpose is to conduct and support research and promote education in the diagnosis, detection and treatoaent of cancer in the pursuit of obt^ning the National Chancer institute designation for its members institutions, the Louisiana Slate University Health Sciences Center in New Orleans, tiie Tulane University Health Sciences Ontcr, tiie Xavier University of Louisiana and Ochsner Healthcare System. The Research Center is owned by its member institutions and is controlled by a Board of Directors, most of whose members are representatives ofthe member institutions.

Financial Statement Presentation

The Research Center's financial statements are presented in accordance with the requirements established by the Financial Accounting Standards Board (FASB) as set forth in the Not-For-Profit Entities Topic of ASC (FASB ASC 958). Accordingly, the net assets of file Research Onter are reported in each of tiie foUowing classes: (a) unrestricted net assets, (b) temporarily restricted net assets and (c) permanently restricted net assets. There were no permanentiy restricted net assets during the year ended June 30,2010.

Basis of Accoimting

The financial statements ofthe Research Onter are prepared on tiie accrual basis of accoimting.

Reporting Entitv

Using tiie criteria established in GASB Statement No. 14, The Financial Reporting Entity as amended by GASB Statement No. 39, Determining Whetiier Certain Organizations are Component Units, the Research <^ter is r^wrted as a discretely presented component unit of the State of Louisiana sioce it is I^ally separate from and is financially accountable to the State ofLouisiana.

LOUISUNA CANCER RESEARCH CENTER OF IJ5.U. HEALTH SCIENCES CENTER

IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30,2010

NOTE A - SUMMARY OF ACCOUNTING POUCBES (CONTINUED)

Annually, the State of Lomsiana issues a comprehensive financial report, which includes the activity contaiaed in the acconq>anying financial statements. The Loiusiana Legislative Auditor audits tiie basic financial statements ofthe State ofLouisiana.

Rjgvenue Recognition

For financial reporting purposes, the Research Center recognizes all contributed siqyport as income in the period received. Contributed support is rqported as uorestricted or restricted dependii^ on the existence of donor stipulations that limit the use of tiie support When a donor restriction eiqpires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statemeaxt of Activities as "iiet assets released fi:om restrictions."

(jrant revenue is recognized as it is eamed in accordance with approved contracts.

Expense Allocation

The costs of providiiig various programs and other activities are summarized on a fimctional basis in tiie finandal statements. Accordingly, certain costs are allocated among the programs and supporting services benefited.

Cash and Cash Equivalents

Cash consists of deposits with financial institutions, including savings and demand deposits. These dqposits are stated at cost, vMch ^pproxiraates market

For the purposes ofthe Statement of Cash Flows, the Research Center considers all investments with original maturities of three months or less to be cash equivalents.

Investments

The Research C enter accounts for investments under Statement of Financial Accounting Standards ASC Topic 958, Accounting for Certain Investments Held by Not for-Profit Organizations. Under Topic 958, uivestments m equity securities with readily determinable feir values and all investments m debt securities are reported at their feir values in the Statements of Financial Position. For valuation purposes, fair value is measured using quoted prices in active markets.

Subsequent Events

Subsequent events have been evaluated tiuough August 27, 2010, the date the financial statements were available to be issued.

LOUISIANA CANCER RESEARCH CENTER OF L.S,U. HEALTH SCIENCES CENTER

BV NEW ORLEANS/TULANE HEALTH SCIENCES CENTER NOTES TO FINANCIAL STATEMENTS (CONTINUEI))

Jane 30,2010

NOTE A - SUMMARY OF ACCOUNTING FOUCIES (CONTINUED)

The fiTianrial statements reflect the adoption of Statement of Financial Accounting Standards ASC Topic 820, Fair Value Measurement. ASC Topic 820 established a single autiioritative definition of &ir value sets a fi^mework for measuring fak value and requires additional disclosures about &ir value measuremeaxt

In accordance with ASC Topic 820, the Research Center classifies its investments into Level 1, which refers to securities traded m an active market. Level 2, which refers to securities not traded on an active market but for which observable market mpais are readily available or Level 1 securities v/bsrc there is a contractual restriction, and Level 3, \ ^ c h refers to securities not traded in an active market and for ^ch no significant observable market inputs are available.

Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amoimts and disclosures. Accordingly, actual results could differ fitmi those estimates.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Depredation is provided for hi amounts sufficient to relate the costs of depreciable assets to operations over their estimated service lives, on a straight-line basis. It is the policy of the Research Ooter to capitalize property and equipment with an acquisition cost in excess of $5,000.

C^omparative Finandal Information

Tlie financial statements include certain prior-year summarized comparative ioformation in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generaUy accepted accounting principles. Accordingly, sudi infonnation should be read in conjunction with the Research Center's financial statements for the year ended June 30,2009 fix>m which the summarized uiformation was derived.

LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER

IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER NOTES TO FINANCIAL STATEMENTS (CONTINUEI))

June 30,2010

NOTEB-CASH

At June 30,2010, cash includes $16,911,491 of repurchase agreemaits. The repurchase agreements are secured by U.S. Treasury obligations.

At June 30, 2010, the bank balance of tiie Research Center's cash was $1,040,557, of "w^ch $250,000 was covered l^ federal depository insurance and the remainder was collateralized by securities in the Researdi Center's name held by fiie Federal Reserve Bank witii market values totahng $540,078.

NOTE C - INVESTMENTS

At June 30 2010, investments consisted ofthe following Level 1 inputs:

Maricetable securities, at cost: Short-term instruments $11,096,674 Net unrealized gain (loss) on marketable

securities , ::

Investments, at mariset $11.096,674

Investment management fees are netted against investment income. For the year ended June 30, 2010, $8,863 in investment management fe^ was netted against investment xacome.

NOTE D - GRANTS RECEIVABLE AND REVENUE

Cfrant revenue consisted ofthe following at June 30,2010: _tljeceivablc Revenue

Louisiana State University Health Sciences Center in New Orleans-Cancer Research $ 4,367,872 $ 9,747,136

Louisiana State University Health Sdences Center in New Orleans-Cessation Program ^ 2,979,950 6,649.915

Total Lomaana State Healtii Sdences Center 7,347,822 16397,051

Department of Economic Development and Ofi&ce of Facility Planning and Control - Cooperative Endeavor ^S^fi®^^* - 3,483.952

$10.831.774



June 30,2010

NOTE E - PROPERTY AND EQUIPMENT

Property and eqdpment consisted ofthe following at Jime 30,2010:

Research equipment $ 4,794,501 Office equipment 82,706

Total equipment 4,877307 Less: accumulated depredation (2,850.578^

Total equipment, net 2,026.629 Land 671,808 Construction in progress-buildiDg 39392.109

Total property and equipment, net $42,090^46

Chancer research is currently being performed at Louisiana State University Health Sdences Center and Tulane Health Sdences Onter. Construction of a combined cancer research fedlity began in February 2008 with the facility eiq^ected to be completed in the 3"* quarter of 2011. Total estimated construction costs for the project are $102 million. Each of the separate university cancer centers will occupy the new fecility when completed.

Tlie Research Center entered into a C^peiative Endeavor Agreement with the State of Louisiana Department of Economic Development and the State Office of Facility Planning and Ontrol during tiie year ended June 30,2009. Under the CU>operative Endeavor Agreement, the Research Center has been recdving reimbursement for State-approved coital improvement expenditures for the cancer research fecility. .

NOTE F - RETIREMENT PLAN

All tull-time Research Center employees are eligible to participate in a 403(b) retirement plan. The existing 403(b) plan is a tax-idtered annuity (TSA) plan, currentiy admiitistered by TIAA-CREF. Although eligible employees are not required to partidpate in the Plan, contributions are made by the Research Center as part of the esteblished benefits package. The Plan also allows for employee contributions with a matching requirement up to 3% of the employee's amiual compensation. TTie Research Center contributed $58,698 to the Plan for the year ended June 30, 2010.

10



Jnne30,2010

NOTE G - SCHEDULE OF FUNCTIONAL EXPENSES

A Schedule of Functional Ejq)enses for the year ended June 30,2010 is as follows:

Program (reneral and Fund Expenses ArfministraHon Raising Total

Research expenses $ 8,141,521 $ - $ - $ 8,141,521 Cessation ejq)enses 7,699,656 - - 7,699,656 Depredation expense - 667396 - 667396 Salaries and related expenses - 537,648 - 537,648 Professional services - 250,035 - 250,035 Operating services - 139,742 - 139,742 Fund raiang expenses - - 54,096 54,096 Marketing - 26,502 - 26,502 Otiier expenses - 9,173 - 9,173 Si5>pUes - 6,987 - 6,987 Travd _ : 5.458 ^ 5.458

$15.841.177 $ 1.642.841 $ 54.096 $ 17,538,114

NOTE H - BOARD OF DIRECTORS' COMPENSATION

The Board of IKiectors is a voluntary boaxd. Accordir^y, no compensation was paid to any board member during the year ended June 30,2010.

NOTE I - ECONOMIC DEPENDENCY

The Research Center received ninety-nine (99) percent of its revenue fix>m funds provided through fimding by the State ofLouisiana during the year ended June 30,2010. The operations of tiie Research Onter are fimded by a legally dedicated State tobacco tax. Any reductions in the tax rate or the amount of taxes collected would have an adverse impact on the Research Center's operations.

TTie Research Center is dependent iq>on State fimding to complete its new building now under construction, but since the necessary remaining fimds have either been appropriated by the State or are currentiy being held in escrow by the State, it is unlikely that the building's completion, currentiy estimated to be in the 3"* quarter of 2011, would not be fimded

11

LOUISUNA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER


June 30,2010

NOTE I - ECONOMIC DEPENDENCY (CONTINUED)

Funding necessary to operate the new building upon con:q>letion will be dependent upon a cost-sharing arrangement which needs to be devdoped and agreed to by its member institutions. If such an arrangement is not in place vtdien die new building is completed and/or is not suffident to cover the operating costs ofthe buildii^ the Research Center will need to use a portion of its dedicated tobacco tax revenues for those costs, which would have an adverse impact on the Research Center's ability to fimd its research efforts.

NOTE J - RELATED PARTIES

Lomsiana Gene Therapy Research Consortinm

The Louisiana C^cer Research Center of LSU Health Sdences Center in New Orleans/Tulane Health Sdences Onter (the **Onter'0 a id the Louisiana (3ene Therapy Research Center (LGTRC) have an aftiliate relationship as tiiey are both partnerships between the LSU Health Sdences Onter in New Orleans and the Tulane Health Sdences Onter. LGTRC includes both LSU Health Sdences Outer in New Orleans and in Shreveport and Tulane Health Sdences Onter as partners while the C^ter includes L.S.U. Health Sdences Onter in New Orleans, Tulane University Health Sdences Onter, Xavier Universi^ of Louisiana and Ochsner Health System, whidi are govemed by governing boards with common members.

The Center has an arrangement with LGTRC that allows for resource cost sharing. Thie Caiter and LGTRC share office space, personnel, and other related si^plies and services. Overiiead expenses are cE ptured in a cost (common cost) pool and allocated to the appropriate organization based on space, usage, and "percent of effort" \^iiere ^jplicable. LGTRC pays all shared e:q>enses on bdialf ofthe Outer's research and cessation components. The Onter reimburses LGTRC based on billings. Tlie total billed to the Onter for the year ended June 30,2010 was $596,549, witii LGTRC's share bdng approximately $400,000. LGTRC's state fimding has been eUmioated^ effective for calendar year 2011, and unless an additional source of fiinding is found, LGTRC will likely be dissolved during the year ending June 30,2011, forcing the Onter to absorb the entire cost ofthe office and personnel expenses currentiy being shared.

LSU HeaMi Sciences Center in New Orleans

LSU Heahh Sdences Center in New Orleans (LSUHSC) is one ofthe four partner institutions that comprise the Center.

As management, two members ofthe LSUHSC are on the govenung board of the Onter. The Chancellor for LSU Health Sdences Onter in New Orleans served as the C3iairman ofthe Board for the year ending June 30, 2010. The Chairman position rotates between the two Health Sdences Center's (LSUHSC and TUHSC) Leaders as dictated by statute. The Vice Chancellor

12



Jnne 30,2010

NOTE J - RELATED PARTIES (CONTINUED)

for Academic Affeirs of LSU Health Sdences (Center in New Orleans is also a voting member of the Center's Board.

LSUHSC (an entity ofthe State) is the transferring agency for state fimding, acting on behalf of the State ofLouisiana. Under a Cooperative Endeavor Agreement arrangement, it is responsible for transferring fimds appropriated by the State of Louisiana for the Onter.

As grantee, the LSUHSC is allocated Center fimding support for program devdopment (part of the mission ofthe Center). Transfer of fimds to LSUHSC for the program is govemed by a fitily executed operating agreement ^^ch includes an azmual budget submitted by LSU Health Sdences (Center in New Orleans and approved by the Outer's Board. The total amount Ixilled to the Center for services rendered during the fiscal year ended June 30,2010 was $2,996,896.

As a vendor, LSUHSC AuxiUary Stores provide goods and services (induding research equipment, office and computer supplies) to the Center. Tlie stores convenientiy provide products and services which supports tiie mission of the Onter. The total amount billed to the Center for goods and services during the fiscal year ending Jime 30,2010 was $6,878.

Tulane University Health Sdences Center

Tulane University Health Sdences Cerrter (TUHSC) is one ofthe four partner institutions that comprise Ihe Center.

As management, two members of TUHSC are on the governing board ofthe Center. TUHSC's Senior Vice President for Health Sdences served as Vice-CHiainnan of tiie Board for the fiscal year ending June 30, 2010. The other TUHSC position was hdd by the Associate Dean for Sdiool of Medidne.

As grantee, TUHSC is allocated Onter fimding support for program development (part of the mission of the Center). Transfer of fimds to TUHSC for the program is govemed by a fully executed operating agreement which includes an annual budget submitted by TUHSC and approved by the Center's Board. The total amount billed to the Center for services rendered during tiie fiscal year ended June 30,2010 was $3,769,639.

Xavier Universitv of Louisiana

Xavier University of Louisiana (XULA) is one ofthe four partner institutions tiiat comprise the Center.

As management, one member of XULA is on the governing board of the Outer. Xavier's President served as a Board member for the fiscal year ending June 30,2010.

13

LOUISIANA CANCER RESEARCH CENTER OF L-S-U. HEALTH SCIENCES CENTER


June 30,2010

NOTE J - RELATED PARTIES (CONTINUED)

As grantee, Xavier Unrversdty of Louisiana is allocated Center fimding support for program development (part of the mission ofthe C^ter). Transfer of fimds to XULA for the program is govemed by a fiilly executed operating agreement w^ch includes an annual budget submitted by

XUIA and qrproved by the Center's Board. The total amount billed to the Center for services rendered during the fiscal year ended June 30,2010 was $1,083,867.

Ochsner HeaMhcare System

Ochsner Healthcare System (Ochsner) is one of the four partner institutions that comprise the Center, joining the Onter in March 2010.

As management one member of Ochsner is on the governing board ofthe Center.

NOTEK-LEASES

The Board of Siqiervisors of Louisiana State University and Agricultural and Medianical College has leased land to the Research Onter on vfidch the Research Onter is constructing its new cancer researdx building. The lease was executed on February 18, 2008 and has a lease term of fifty (50) years. The rental amoimt is $80,000 per year payable in quarterly installments until the new Research Onter building is substantially cou^Iete or January 1, 2011, whichever occurs first Thereafter, the rental amount will be $129,174, payable in quarteriy installments.

The following is a schedule, by year, of firture minimum lease payments required under the operating lease:

Year ending June 30, Amount

2011 $ 104,587 2012 129,174 2013 129,174 2014 129,174 2015 129,174

Tlieteafter 5J54.482

Total minimum lease payments

14

SUPPLEMENTAL INFORMATION

LOUISUNA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER

IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER SCHEDULE OF REVENUES AND EXPENSES BY PROGRAM

For the Year Ended June 30,2010

REVENUE Grants mltnst Investment mcome Net cfaaogc ID uorealized

gain on investments Other

Total Revenue

EXPENSES ReseardicMpenses Cessatum oqienses Dq)ied3liQn Salaries and related aqpenses Fund raising oqicnses PiofessicHial services Operadng services Other expenses SuppBes "navd MadKtmg Business oqpenses

Total E}qxnses

INCREASE (DECREASE) IN NET ASSETS

Pn^>eity and EquiEHuent CnpftaliTWl

NETASSETS, BEGINNING OF YEAR

NETASSETS, END OF YEAR

Cancer Researdi

$ 36,553334 17,027 14v876

--

36485J237

8,141,521 --

464,612 -

"242,935 134,544

920 6,974 5,458

26,502 6,710

9,030.176

27,555.061

(279,073)

29,706.055

S 56,982,043

Cessation

S 6,649,915 8,074

-

--

6.657.989

-7,699.656

-73,036

-7,100 5,198 1,493

13 --~

7,786,496

(1.128,507)

-

9,629335

S 8,500,828

Fund Raising

S 4.635

-

-224,497

229.132

----

54,096 --

50 ----

54,146

174,986

-

281,439

S 456,425

Property and

Ei]iiipineirt

$ --

--

^

--

667,296 .

--------

667,296

(667,296)

279,073

5.974,491

S 5,586,268

Total

$ 43,203,249 29,736 14,876

-224,497

43.472358

8,141,521 7,699,656

667,296 537,648

54,096 250,035 139.742

2.463 6.987 5,458

26402 6,710

17,538,114

25,934.244

-

45491320

J 71325464

15

REPORT REQUIRED BY GOVERmiENTAUDITINGSTAJNDARDS

REBOWE & COMPANY CERTIFIED PUBLIC ACCOUNTANTS

CONSUUTANTS

A PROFESSIONAL CORPORATION

3501 N. Causeway Blvd. • Suite 810 • P.O. Box 6952 - Metairie. U 70009 Ptione (504) 837-9116 ' Fax (504)837-0123 • www.rebowe.eom

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUJOITiNG STANDARDS

Board of Dixectois Louisiana Cancer Research Center of L.S.U. HeaMi Sciences Center

in Nerr Orleans/Tnlane Health Sciences Center New Orleans, Louisiana

We have audited tbe financial statements ofLouisiana Cancer Research Center of L.S.U- Health Sciences Center in New Orleans/Tulane Health Sciences Center (the "Research Center"), as of and for the year ended June 30,2010, and have issued our report thereon August 27, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States.

Intemal Control Over ffrngnpial Reporting

In planning and performing our audit, we considered the Research Center's internal control over finandal reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of ejcpressing an opinion of the effectiveness ofthe Research Center's intemal control over financial reporting. Accordingly, we do not express an opinion on flic effectiveness of Ihe Research Center's intemal control over financial reporting.

A defidency in internal control exists \s4ien the design or operation of a control does not allow management or emqployees, in the normal course of performing their assigned fimctions, to prevent or detect misstatements on a timely basis. A material weakness is a defidency, or combination of defidendes, in intemal control such that there is a reasonable possibility that a material misstatement of the Research Center's finandal statements will not be prevraxted, or detected and corrected on a timely basis. Our consideration of internal control over finandal reporting was for Ihe limited purpose described in the first paragr^h of this section and would not necessarily identify all defidendes in intemal control over finandal reporting that might be deficiendes, significant defidendes or material weaiaaesses. We did not identify any defidendes in internal control over finandal reporting that we consider to be material weaknesses, as defined above.

16

http://www.rebowe.eom

Compliance and Otiher Matters

As part of obtaining reasonable assurance about whether Louisiana Cancer Research Center of L.S.U. Health Sdences Center in New Orleans/Tulane Health Sdences Center's financial statements are fiee of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompUance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests (Hsclosed no instances of noncompliance or other matters that are reqmred to be reported under Government Auditing Standards.

This report is intended solely for the infonnation and use ofthe Audit Conunittee, management, others within the Research Center, Lomsiana awarding agencies, Louisiana Legislative Auditor, and it is not intended to be and should not be used by anyone other than these spedfied parties. Under Louisiana Revised Statute 24:513, tins report is distributed by the Legislative Auditor as a public document

August 27,2010

17


IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS

For tbe Year Ended June 30,2010

A. Sununaiy of Auditor's Results

1. The auditor's report expresses an unqualified opinion on the finandal statements ofthe Louiaana Cancer Research Center of L.S.U. Health Sdences Center in New Orleans/Tulane Health Sdences Carter.

. 2. No significant defidencies relating to the audit ofthe finandal statements are reported in the Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards.

3. No instances of nonconipliance material to Ihe finandal statements of the Louisiana Cancer Research Center of L.S.U. Health Sdences Center in New Orleans/Tulane Health Sdences Center, wbich would be required to be reported in accordance with Govemment Auditing Standards, were disclosed during the audit

4. A Management Letter was not issued for the year ended June 30,2010.

B. Findings - Finandal Statement Audit

There were no findings for the current year.

18


nsr NEW ORLEANS/TULANE HEALTH SCIENCES CENTER SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


A. Findings-Financial Statement Audit

There were no findings for the year ended June 30,2009.

B. Management Letter

A Management Letter was not issued for the year ended June 30,2009.

19

LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER .

IN NEW ORLEANSnnDLANE HEALTH SCIENCES CENTER CORRECTIVE ACTION PLAN


There are no compliance and/or intemal control findings as described in the Schedule of Findings and Questioned Costs. Accordingly, there is no corrective action plan required as part of this section.

20

OTHER SUPPLEMENTARY INFORMATION REQUIRED BY THE STATE OF LOUISIANA

Louisiana Cancer Research Center STATE OF LOUISIATJA

Annual Finandal Statements June 30.2010

C O N T E N T S TRANSMITTAL LETTER AFFIDAVIT

Statements

MD&A

Balance Sheet A

Statement of Revenues, Expenses, and Changes in Fund Net Assets B

Statement of Activities (Additional infomiation in Appendbc B) C

Statement of Gash Flows D

Notes to the Rnandal Statements A Summary of Significant Accounting Policies B. Budgetary Accounting C. Deposite with Fmandal Institutions and Investments (See Appendix C) D. Capital Assets - Induding Capital Lease Assets , E. Inventories F. Restricted Assets G. Leave H. Retirement System I. Other Postemployment Benefite (Additional infonnation in Appendix D) J. Leases K. Long-Tenn Liabifities L Contingent Liabifities M. Related Party Transactions N. Accounting Changes O. In-Kind Contributions P. Defeased Issues Q. Revenues or Receivables - Pledged or Sold (GASB 48) (See Appendix E) R. Government-Mandated Nonexchange Transactions (Grants) S. Violations of Finance-Related Legal or Contrartual Provisions T. Short-Term Debt U. Disaggregation of Receivable Balances V. Disaggregation of Payable Balances W. Subsequent Events X. Segment Infomiation Y. Due to/Due from and Transfers Z. Uabilities Payable from Restricted Assets

AA. Prior-Year Restatement of Net Assets BB. Net Assets Restricted by Enabling Legislation (See Appendix F) CO. Impairment of Capital Assets (See Appendix G) DD. Employee Tennination Benefits EE. Pollution Remediation Obligations

21

FF. American Recovery and Reinvestment Act (ARRA)

Schedules 1 2 3 4 5

15 16

Schedule of Per l^em Paid to Board Members Not Applicable Schedules of Long-Term Debt Schedules of Long-Term Debt Amortization Schedule of Cun-ent Year Revenue and Expenses - Budgetary Comparison of Current Appropriation - Non-GAAP Basis (applicable only for entities whose budget is appropriated by the legislature) Schedule of Comparison Figures and Instructions Schedule of Cooperative Endeavors (see Appendix H)

Appendix A General Instructions for Preparation ofthe Consolidated BTA AFR B Instructions forthe Simplified Statement of Activities C Information for Note C - Deposits with Rnandal Institutions & Investments D Information for Note I ~ Other Postemployment Benefits E Infonmation for Note Q - Revenues or Receivables - Pledged or Sold (GASB 48) F Information for Note BB - Net Assets Restricted by Enabling Legislation G Information for Note 0 0 - Impainment of Capital Msets H Information for Schedule 16 - Cooperative Endeavors

22

Sctiedule Number STATE OF LOUISIANA

Annual Financial Statements Fiscal Year Ending June 30, 2010

LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER

1615 Poydras St Ste 1000, New Orleans

Division of Administration Office of Statewide Reporting

and Accounting Policy P. O. Box 94095 Baton Rouge, Louisiana 70804-9095

Physical Address: 1201 N. Third Street Claiborne Building, 6^ Floor. Suite 6-130 Baton Rouge, Louisiana 70802

Legislative Auditor P. 0. Box 94397 Baton Rouge, Louisiana 70804-9397

Physical Address: 1600 N. Third Street Baton Rouge, Louisiana 70802

AFFIDAVIT

Personally came and appeared before the undersigned authority, Deborah C. Reeder. Vice President of

Finance of the Louisiana Cancer Research Center of L.S.U. Health Sciences (^nter in New

Orleans/Tulane Health Sciences Center who duly swom, deposes and says, that the finandal statements

herewith given present fairly the financial position of Louisiana Cancer Research Center of L.S.U. Health

Sciences Center in New Orleans/Tulane Health Sciences Center at June 30, 2010 and the results of

operations for the year then ended in accordance with policies and practices established by the

Division of Administration or in accordance with Generally Accepted Accounting Principles as

prescribed by the Govemmental Accounting Standards Board. Swom and subscribed before me, this

30^ day of August . 2010.

Signature of Agency Official

Prepared by: Ryan A. Graffaanini

Title: Fiscal Operations Manager

Telephone No.: (504)598-1557

Date: 8/30/10

Email Address: [email protected]

/) ^' NOTARY PUBLIC

mailto:[email protected]

STATE OF LOUGSDAMA LOUBSBAWA CAWCER RESEARCH! CENTER OF L.S ORLEAWS/TULAWE HEALTIH SCSEWCES CENTER RSAE^AGEElJiEWT'S DDSCUSSBOM AMD AE IIALYSllS ASOF JUIME30, 2010

HEALTH SCQEMCES CES^TER M WEW

The Management's Discussion and Analysis of the Louisiana Cancer Research Center of L S U Health Sciences Center in New Orleans/Tulane Health Sciences Center (Louisiana Cancer Research Center's) financial performance presents a nan-atwe overview and analysis of the Louisiana Cancer Research Center's financial activities for the year ended June 30, 2010 This document focuses on the current year's actn/rties, resulting changes, and currently known facts in companson with the pnor year's information Please read this document in conjunction with the Louisiana Cancer Research Center's financial statements which begin on page 29

FDEVIAIMCSAL HIGHUGHITS

TV The Louisiana Cancer Research Center^s assets exceeded its liabilities at the close of fiscal year 2010 by $71,525,564, which represents a 57% increase from last fiscal year The net assets increased by $25.934.242

TV The Louisiana Cancer Research Center's revenue increased $21,680.335 ( or 100%) and the net results from activities increased by $25.973 462 (or 526%) The unusual increase in revenue is due to a capitai outlay grant for the construction of the Cancer Research Center This fiscal vear. $26.806.198 of capital outlay grant funds were realized which makes up 62% of total revenue Of the recumng grant revenue used for operations $9.747,136 was realized which IS a $653.220 (or 6 3%) decline compared to last fiscal year

OVERVIEW OF THE FBE SASVlCaAL STATEIill^EIi^TS

The following graphic illustrates the minimum requirements for Special Purpose Governments Engaged in Business-Type Activities established by Govemmental Accounting Standards Board Statement 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Govemments

pyMj v^ - li',,smW.^^lCMt^'CiMJ^

These financial statements consist of three sections - Managements Discussion and Analysis (this section), the Basic Financial Statements (including the notes to the financial statements), and Required Supplementary Information

24

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW ORLEANSrrULANE HEALTH SCIENCES CENTER MANAGEMENTS DISCUSSION AND ANALYSIS AS OF JUNE 30,2010

Basic Financial Statements

The basic financial statements present infonnation for the Louisiana Cancer Research Center as a whole, in a format designed to make the statements easier for the reader to understand. The statements in this section include the Balance Sheet; the Statement of Revenues, Expenses, and Changes in Fund Net Assets; and the Statement of Cash Flows.

The Balance Sheet (page 30) presents the cunent and long-term portions of assets and liabilities separately. The difference between total assets and total liabilities is net assets and may provide a useful indicator of whether the financial position of the Louisiana Cancer Research Center is improving or deteriorating.

The Statement of Revenues. Expenses, and Changes in Fund Net Assets (page 31) presents infomiation showing how the Louisiana Cancer Research Center's assets changed as a resuK of current year operations. Regardless of when cash is affected, all changes in net assets are reported when the underlying transactions occur. As a result, there are transactions included that will not affect cash until future fiscal periods.

The Statement of Cash Flows (pages 33) presents infonnation showing how the Louisiana Cancer Research Center's cash changed as a result of current year operations. The cash flow statement is prepared using the direct method and includes the reconciliation of operating income(1oss) to net cash provided(used) by operating activities (indirect method) as required by GASB 34.

25

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmiLANE HEALTH SCIENCES CENTER MANAGEMENTS DISCUSSION AND ANALYSIS AS OF JUNE 30,2010

FINANCIAL ANALYSIS OF THE ENTITY

Restricted net assets represent those assets that are not available for spending as a result of legislative requirements, donor agreements, or grant requirements. Conversely, unrestricted net assets are those tfiat do not have any limitations on how these amounts may be spent

Net assets of Louisiana Cancer Research Center's increased by $25.934.244. or 57%, firom June 30, 2009 to June 30,2010. The primary reason is due to the addition of net $26.172.752 in Construction in Progress Assets. Other causes include a slight decrease in Net Property & Equipment Assets due to depredation

The Louisiana Cancer Research Center s total revenues increased by $21.557.474 or (98%). The total cost of all programs and services decreased by $273.316 or 2%.

CAPITAL ASSET AND DEBT ADMINISTRATION t

Capital Assets

At the end of fiscal year ended June 30, 2010, the Louisiana Cancer Research Center had $42.090.546 fnet) invested in a broad range of capital assets, including land, construction in progress, research and office equipment (see accompanying Table). This amount represents a net Increase (including additions and deductions) of $27.470.816. or 188%, over last year.

26

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER MANAGEMENTS DISCUSSION AND ANALYSIS AS OF JUNE 30, 2010

This year's major additions included (in thousands):

• $26,173 in Construction in Progress

2010 2009

Land Buildings and improvements Equipment Infrastructure

$ 672 39,392 2,027

$ 672 11,533 2.415

Debt Totals $ 42,091 $ 14,620

The Louisiana Cancer Research Center had $ 0 thousand in bonds and notes outstanding at year-end. The Louisiana Cancer Research Center currentiy has no outstanding long-tenm debt

The Louisiana Cancer Research Center has no claims and judgments outstanding at year-end compared with none last year. Current other obligations include accrued vacation pay and sick leave.

VARIATIONS BETWEEN ORIGINAL AND FINAL BUDGETS

Revenues were approximately $1.8 million under budget and expenditures were less than budget due in part to State hiring freeze imposed on corporate member, LSUHSC-NO.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES

The Louisiana Cancer Research Center's elected and appointed officials considered the following factors and indicators when setting next year's budget, rates, and fiees:

• Decrease in tobacco tax projections and receipts • Increase in faculty recruitment and other program costs • Building Operations Expenses

27

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER MANAGEMENTS DISCUSSION AND ANALYSIS AS OF JUNE 30, 2010

The Louisiana Cancer Research Center expects that next fiscal yearns results will be influenced by the following Actors:

• Net assets vwli increase significantly due to an anticipated increase construction in progress activity.

• Program dev^pment activities, including faculty recruitment, should continuously improve, thus resulting in an increase in the number of NIH/NCI funded faculty and an increase in federal grants which can be used to support further program development These grant monies are directed toward the member institutions, which indirectiy benefits the Research Cerrter by decreasing the dependency of the member institutions on Research Center funds.

• Construction of the LCRC building will be nearing completion which will help in fundraising and recruitment activities.

• The possible dissolution of the Louisiana Gene Therapy Research Consortium would increase operating costs currently being shared with tiiat organization.

Additionally, the Louisiana Cancer Research Center is in the process of developing a cost-sharing arrangement to fund the operations ofthe new building, which is expected to be completed in the year ending June 30, 2012. If such an anangement is not in place wfien the new building is completed and/or is not sufficient to cover ft\e operating costs of the building, the Research Center will need to use a portion of its revenues to pay those costs, which would have an adverse impact on the Research Center's ability to fund its research efforts.

CONTACTING THE LOUISIANA CANCER RESEARCH CENTER'S MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of tiie Louisiana Cancer Research Center's finances and to show the Louisiana Cancer Research Center's accountability for the money it receives. If you have questions about this report or need additional financial Infonnation, contact Deborah Reeder at (504)598-1557

28

STATE OF LOUISIANA Statement A LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmiLANE HEALTH SCIENCES CENTER BALANCE SHEET AS OF JUNE 30,2010

ASSETS CURRBJT ASSETS:

Cash and cash equivalents • $ 14.260,618 Investments 11.096.674^ Receivables (netof allowance fer doubtail accoijnts)fl*lote U) io,85g,57a Due from otherfiinds (Note Y) Due from federal government .. Inventories Prepayments ^ _ ^ _ _ _ _ _ _ _ _ _ _ Notes recehiablB Other cunent assets - i r »mrwMr

Total cunent assets 3 6 J Z l 5 ^ b ^ NONCURRENTASSETS:

Restricted assets (Note F): Cash _ _ „ ^ _ _ _ _ _ _ _ Imestments Receivables

Investments - , _ _ ^ ^ . ^ ^ _ ^ _ ^ — Notes receivable Capital assets (netofdeprecration)(Note D)

Land 671.808 Buildings and improvements Machineryand equipment 2.026.629' InfrBstnjûre Constmd)on-jn-progress 39.392,109'

Other noncurr»it assets Total noncurrentassets 42,090,54^

Total assets 5 TffÔBTtrr

UAEHJTIES CURRENT LIABILmES:

Accounts payable and accruals (Note \0 $ 6,780,847 Due to other fiinds (Note V} Due to federal gow^nment Defemed revenues Amounts held in custodyfbr others Other cumît liabilities CunBntporfion of long-term liabilities: OMote K)

Contracts payable Compensated atisences payable Capital lease obligations ^ Claims and litiga&on p a y ^ l e ^ ^ ^ ^ . ^ _ _ _ „ _ „ Notes payable Bonds payable Other long4erm liabilifies

Total current fiabiltties S.ytt0.84V NONCURRENT LIABILmES: (Note K)

Contracts payable _ _ _ _ _ _ ^ ^ _ ^ ^ Compensated absences payable ^ ^ _ _ ^ _ ^ ^ _ _ _ _ . . „ Capital lease obligations ^^________™.__:.„ Claims and litigation payable Notes payable _ _ _ „ _ _ ^ ^ ^ _ ^ _ _ BcMids p a ^ b l e OPEB pa)able Other long-tenn (iabiti&'es „ _ — _ _ ^ ^ ^ ^ _ ^

Total noncurrent liabiTities -Total liabilities 5.760.84'/

NETASSETS Invested in capital assets, netof related debt 38j472.912 Restricted ftin

Capital projects Debtsennce Unemployment compensation ^ _ ^ ^ _ ^ ^ ^ ^ _ _ _ Other specific purposes

Unrestricted 33,052,652 Total net assets 7 t 5 2 5 ^

Total liabilities and net assets $ 78^36 ,411 '

29

STATE OF LOUISIANA Statement B LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmiLANE HEALTH SCIENCES CENTER STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30,2010

OPERATING REVENUES Sates of com modities and services $ Assessments ^ ^ ^ _ _ _ _ _ - _ _ _ _ _ _ - » . U se of mo ney and property , Ucenses, penntts, andfees Other- Grants (LSU HSC) 45,505.235" Other- Fundraising 224.497 Total operating revenues 43.427,746

OPERATING EXPENSES Cost of sales and services ^ _ ^ ^ _ _ _ _ _ _ _ ^ _ ^ ^ ^ . „ . , — Admmistrative 16.870.818 Depredation 667,296 Amortization ,,^^---,—«—

Total operating expenses 17.536,il4 "

Operating income(loss) 25,889,632

NON-OPERATING REVENUES(EXPENSES) State appropriations ^ ^ ^ _ _ ^ . ^ ^ _ ^ _ _ - _ — _ _ Intei^cvemmental revenues (expenses) • Taxes Use of money and property Gain on disposal of fixed assets Loss on disposal of fixed assets Federal grants Interest expense Other revenue 44.612" Otherexpense Total non-operating revenues(expenses) 44.612

lncome(loss) before contributions, extraordinary items, & transfers 25.934.244

Capital contn'butions Extraordinary item - Loss on impainnentof capltalassets Transfers in Transfers out

Change in net assets 25.934.244

Total net assets - beginning 45.591.320

Total net assets - ending $ 71.525.564

The accompanying notes are an integral part of this financial statement 30

STATE OF LOUISIANA Statement C LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSnrULANE HEALTH SCIENCES CENTER STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2010

See Appendix B for instructions

Bcpenses

F^nogram Revenues

Charges for

Seivices

Operafing Grants and Contributions

CafHtal Grants and CcNitribuSorts

Net^cpense)

Revenue and Changes in Net Assets

Entr^ $ 17.538.114 $ $ 43203.249 $ 25,665.135

G&i«a l revenues: Taxes State apfKopriations

Grants arxl contribufims not resfeicted to spedfic programs Int^est Miscellaneous

Spedai items Extraordinary 'rtem - Loss on fmpam»i t of capftal assets Transfers

Total general revenues, special 'it&ve. and transfers Change in n ^ ass^s

Net assets - beginrung as restated Net 3 s s ^ - ending

44^12

224,497

269.109 25.934244 45,591320 71,525,564

The accompanying notes are an integral part of this s ta tement

31

STATE OF LOUISIANA Statement D LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmiLANE HEALTH SCIENCES CENTER STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30,2010

Cash flows f fom operating activities Cash rectivedfnvn customers $ 43,008.637

Cashpaymentstosupplieisforgoodsandsenrices (16.720,720) cash payments to em|:doyees for serwces _ _ _ _ _ _ ^ PaynnenlsinlieuoffeKes Mefnalactiwty-pEvn»its to other &nds Clams paid to outaders OBier openafing pevenues(expenses) 254.233

Net cash providedCused) tjy operating activities 26.542.150

Cash flows from n o n - c ^ t a l finandng activities Sbte appropriations Ffederalrece^ Federal cfisbunsements Proceeds from sale (tf bonds Prindpal paid on bcmds t n t e r ^ paid on bond maturities Proceeds from issuance of nc^as payable

Principal paid on notes payable - _ _ _ _ _ _ . ^ ^ ^ ^ ^ _ _ Interest )KDd on notes pa^b le -

OperaSr^ ^aiAs received ^ ^ ^ _ ^ _ ^ ^ _ ^ _ _ _ _ _ ^ Transfers in Transfers out

Other N^cash pro»ded(used) by non-capitajfinandng activities ._^

Cash flows ftom capital and lelated financing actinties Proceeds torn sale of bonds

Prindpal pedd on bonds lnt«est iieDdon bowl mafcaifies Proceeds frran issuance of notes payable Prindpal paid on notes payable Interest pad on notes payable

Axjuisrtionfconstructlon of c^)ital assets ^ .138.112^ PnaseedsfitKTi sale of cafMtal assets Capita contnljufions Other

Net cash prowled(used) by cafxtal and related finandng activities (28,138.112)

Cash f lows f iom investing activities

Puidiases of investmerft securities (21.605.750) Proceeds t a n sale of investment securifies 2 1 ^ 4 , 6 0 3 Interest and dividends eamed on investment securities 14,876

Net cash prowidedCusecO by investing activities (76271)

Net inaEase(decrease) in cash and cash equivalents (1.672233)

Cash and cash eqiflvalenls at beginning of year 15.932,850

Cashandcashequivalentsatendofyear a 14 26061?

32

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30,2010

Recor\tiliafion of operating incoineQass) to net cash prcHided(used) ty operatmg activiSes:

Operating incomeOoss) $ 25,919i368 Adjustments to recondle ( )eraSng inoomeOoss) fo net cash

pnm(fed(used) E^ operating activaies: iD^aredafionfeunui feafion 667296; Provision for uncollecSble accouits Other

Changes in assets and f^Iities: (lnaease)decrease h accounts rec^vable, nrf (216.733) (lnaease}decFease r i due from other ftmds (tncrease)decrease in prepayments 20,000 {bKre3se}decrease h ini/entories _ _ _ _ ^ _ _ ^ _ « . (Increase)deaeaseh other assets lnaease(decrease) h accounts payaMe and accnjals 1S2219 lncrease(decrease) h conpensated absences payable _ _ _ , _ ^ - — ^ ^ _ lnciEase((feaease)hdueto otherfiinds _ _ _ ^ ^ — ^ — ^ _ trtcfease(deaease) h defened revenues lnaease(deaease) h O P S parable I ncrease(deaease) h otha- Babilties

Netcashpn)vJGled(used)by<^3eFatingactrvF6es $ 25,5^150

Schedule of noncash investing, capital, and financing activities:

Borrowing under capital lease(s) Contn'butions offixdd assets Purchases of equipmerrt on account Asset trad&4ns Other (spediy)

Total noncash investing, capital, and finartcing acthrities:

The accompanying notes are an integral part of this statement

33

STATE OF LOUISIANA LOUISIANA CANCER I ^ S E A R C H CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financia l Statement A s o f and for the year ended June 30,2010

INTRODUCTION

The Louisiana Cancer Research Center was created by the Ljouislana State Legislature under the provisions of Louisiana Revised Statute 17:1921. The following is a brief description of the operations of Louisiana Cancer Research Center and includes the parish/parishes in which the (BTA) is located:

A. SUMMAIY OF SIGNIRCANT ACCOUNTING POUCIES

BASIS OF ACCOUNTING

In April of 1984. the Finandal Accounting Foundation estabfrshed the Govemmental Accounting Standards Board ((3ASB) to promulgate generally accepted accounting principles and reporting standards with respect to activities and transactions of state and local govemmental entrties. TTie GASB has issued a (Modification of C^vemmenta) Accounting and Fmancial Reporting Standards ((^ASB Codification). This codification and subsequent (3ASB pronouncements are recognized as generally accepted accounting principles for state and local govemments. The accompanying financial statemerrts have been prepared in accondance with such principles.

The accompanying finandal statements of Louisiana Cancer Research Center of LS.U. Health Sciences Center in New Orleans/ Tulane Health Sciences Center present infomiation only as to the transactions of the programs of the Louisiana Cancer Center as authortz^d by Louisiana statutes and administrative regulations.

Basis of accounting refers to when revenues and expenses are recognized and reported in the finandal statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

T)ie accounts of the touiaana Cancer Onter are maintained in accordance with appficable statutory provisions and the regulations of the Division of Administration - Office of Statewide Reporting and Accounting Policy as follows:

Revenue Recognition Revenues are recognized using the full accrual basis of accounting; therefore, revenues are recognized in the accounting period in which they are eamed and become measurat>le.

Expense Recognition Expenses are recognized on the accmal basis; therefore, expenses, including salaries, are recognized in tiie period incurred, if measurable.

B. BUDGETARY ACCOUNTING

The appropriations made for the operations of the various programs of the Louisiana Cancer Center are annual lapsing appropriations.

1. The budgetary process is an annual appropriation valid for one year. 2. The agency is prohibited by statute from over expending the categories established in the budget 3. Budget revisions are granted by tiie Joint Legislative Committee on the Budget, a committee of the

Louisiana Legislature. Interim emergency appropriations may be granted by the Interim Emergency Board.

34

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes t o the Financial Statement As o f and f o r the year ended June 30,2010

4. The budgetery information induded in the finandal statements includes the original appropriation plus subsequent amendments as foltows:

APPROPRIATIONS

Ori nal approved budget $ 17,485.926

Am idments

Final a iproved budget $ 17 495.926

C. DEPOSnrS W I T H F INANCIAL INSTITUTIONS A N D INVESTMENTS (If all agency cash and investments are deposited in the State Treasury, disregard Note C.) See Appendbc C for infomiation related to Note C.

1. DEPOSITS WITH FINANCIAL INSTITUTIONS

For reporting purposes, deposits wHh financial institutions indude savings, demand deposits, time deposits, and certificates of deposit Under state law the Louisiana Cancer Center may deposit fonds within a fiscal agent bank selected and des'^nated by the Interim Emergency Board. Further, the (BTA) may invest in time certificates of deposit In any bank domidled or having a branch office In the state of Louisiana; in savings accounts or shares of savings and foan associations and savings banks and in share accounts and share certificate accounts of federally or state chartered credit unions.

For tiie purpose of tiie Staternent of Cash Flows and balanoe sheet presentatton, all highly liquid investments (induding negotiable CDs and restiicted cash and cash equivalents) and deposits (including nonnegotiable CDs and restricted cash and cash equivalents) with a maturity of tiiree months or less when purohased are considered to t>e cash equivalents.

Deposits in bank accounte are stated at cost, whk^ approximates maricet Under state law these deposits must be secured by federal deposit insurance or the pledge of securities owned by the fiscal agent bank. The maricet value of the pledged securities plus the federal deposit Insurance must at all times equal the amount on deposit with tiie fiscal ag^i t These pledged securities are required to be held in the name of the pledging fiscal agent bank in a holding or custodial bank in the form of safekeeping receipts held by tiie State Treasurer.

GASB Statement 40, which amended GASB Statement 3, eliminated the requirement to disdose all deposits by tiiroe categories of risk. GASB Statement 40 requires only ttie disctosure of deposits tfiat are considered to be exposed to custodial credit risk. An entit/s deposits are exposed to custodial credit risk if the deposit balances are eitiier 1) uninsured and uncoUateralized, 2) uninsured and collateralized witii securities held by the pledging financial institution, or 3) uninsured and collateralized with securities heki by the pledging financial institution's trust department or agent but not in the entit/s name.

35

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

The deposits at June 3D, 2010 consisted of the fotkwing:

Deposits in bankaccounts per bank $_ $ $ 17,752,047 $ 17,752,047

Bank t>alances of deposits esqxjsed to custodial credit n'sk: a. Uninsured and uncoltatwafed $ $ $ $ -b. Uninsured and collateralized with

securities held bytfie pledging institution. $ $ $ $ -c Uninsured and collateralized vnth

securities held bythe pledging Institution^ tmst departmentoragenybutnotintheentit/s name. $ 9 $ $ -

NOTE: The "Deposits m t}ank accounts per bank" will not necessarily equal tiie 'Balance per agency l>ooks" due to outstanding items.

The foltowing is a breakdown by banking institution, program, and amount of the "Deposits in bank accounts per t)ank' balances shown above:

Banking Institution Proaram

1. Whitney National Bank 715-112-961 2. Whitney National Bank 71S-112-988 3. Whitney National Bank 715-760-769 4. Regions National Bank 4305090032

$

Amount

12,211.947 4.699.544

840.556

0

$ 17,752.047 Total Cash in State Treasury and petty cash are not required to be reported in the note disdosure. However, to aid in recondling amounts reported on ttie balance sheet to amounts reported in tiiis note, list befow any cash in treasury and petty cash that are induded on tiie balance sheet

Cash in State Treasury $ -Petty cash $ _ -

INVESTMENTS

The Louisiana Cancer Research C enter of LS.U Health Sdence Center in New Orieansn"ulane Health Sdences Center does maintain investtnent accounts as autiiorized by the Board of ttie Louisiana Cancer Research (inter's (5oveming Board and consistent with policy governing its organizational structure.

Custodial Credit Risk

Investtnents can be exposed to custodial credit risk if ttie securities underiying ttie investtnent are uninsured, not registered in ttie name of ttie entity, and are eitiier heW by the counterparty or ttie counterparty's tiiist

36

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTTI SCIENCES CENTER Notes to the Financial Statement As o f a n d for the year ended June 30,2010

departtnent or agent but not in the entity's name. Repurchase agreements are not subject to cred'rt risk if the securities underlying the repurchase agreement are êmpt from credit risk disclosure. Using the following table, list each type of investtnent disdosing the total carrying amounts and maricet values, and any amounts exposed to custodial credit risk.

GASB Statement 40 amended GASB Statement 3 to eliminate ttie requirement to disdose all investtnents by three categories of risk. GASB Statement 40 requires only the sejsarate disdosure of investments tiiat are considered to tie exposed to custodial credit risk. Those investments exposed to custodial credit risk are reported by type in one of two separate columns depending upon whether they are ttekl by a counterparty, or held by a counterparty's trust department or agent not in the entity's name. In addition, the total reported amount and fair value columns sfa'H must be reported for total investments regardless of exixisure to custodial CTeditrisk.

Investments Exposed to Custodal CretStRisk

Tvoeoflnveshment

Uransured, 'Ûnre^steied,

and Held by

Counteroartv

Uninsure<^ *lfriregistered,

andHekJby Counterparty's Trust Dept or

Agent Not nri Enfa't/s Name

Reported Amount

Per Balance

Sheet

AD Investments Regardless of Custocfial CrecfitREk Exposure

Fair Value

NegoSableCDs Repurchase agreements U.S. Government securities U.S. êncy Obltgafions Common & preferred stock MoT^ês Cmcluding CMOs & MBSs) Corporate bonds Mutual ftjnds Real esê External Investment Pool (LAMP) **• Bctemal Investment Pod (Other) Other (Commracial Paper)

TotEd investments $ - $

11.096.674 11j096.674

- $ 11.096.674 $ 11j096.674

'Unregistered- not registered in the name ofthe govemment OTentt^ * * These d)llgafion s generally are not exposed to custodial credit risk because they are t}acked t^

the full feith and tTeditoftiieUS. govemment {SeeAppendixCfofttiedefinifion of U.S. Govemment Obligations)

*** LAMP investments shouki not be induded in deposits AND should be identified separately in this tableto ensure LfiJNP investmOTts are not double-counted on tiie State level

37

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSn'ULANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

3. CREDVT RISK, INTEREST RATE RISK, CONCENTRATION OF CREDIT RISK, AND FOREIGN CURRENCY RISK DISCLOSURES

A Credit Risk of Debt Investments

Disdose ttie credit risk of debt investments by credit quality ratings as described by rating agendes as of ttie fiscal year end. induding ttie rating agency used (Mood/s, S&P. etc.). All debt investtnents regardless of type can be aggregated by credit quality rating (if any are un-rated, disdose that amount).

Rating Agency Rating Fair Value

S&P AAA $ 11.096,674

Tot^ $ 11.096.674

B. Interest Rate Risk of Debt Investinente

1. Disdose the interest rate risk of debt investments by listing the investment type, totel fair value, and breakdown of maturity in years for each debt investinent type. (Note - This is ttie prescribed mettiod, segmented time distribution, for the CAFR. Also, total debt investments reported in th's table should equal totel debt investments reported in Section A - Credit Risk of Debt Investments.)

Investment Maturities (In Year^

Tvte of Debt Irwestment

U.S. Govemment ob ig^ons

U.S. Agency obligations

Mortgage tscked securities CoHateralzed mortgage obligations Corpofale bonds OthOT bonds (describe) Mutual bond funds

Other

Total debt nvestments

Value

$

11.096,674

$ 11,096,674

Less T h a n l

$ - 9

11.096.674

$ 11.096,674 ;

Greater 1-5 6-10 ThanlO

38


2. List the fair value and terms of any debt investments that are highly sensitive to changes in interest rates due to the terms (e.g. coupon muttipliers. reset dates, etc.) of the investment See Appendix C for examples of debt investments that are highly sensitive to changes in interest rates.

Debt Investment Fair Value Terms.

None $

Total $ -

0. Concentration of Credit Risk

Ust by amount and issuer, investmente in any one issuer that represents 5% or more of totel extemal investinents (not induding U.S. govemment securities, mutoal funds, and investment pools).

% of Total Issuer Arnount Inv^trnente

None $

Amount

$ -Totel

D. Foreign Currency Risk

Disdose the U.S. dollar balances of any deposits or investments that are exposed to foreign currency risk (depostte or investtnents denominated in foreign currendes); list by currency denomination and investment ^pe, rfapplk:able.

Fairvalue in U.S. Dollars Foreign Currency Bonds Stocks

None $ $

Total

4. DERIVATIVES (GASB 53)

A. Summary of Derivative Insbiiments

Complete ttie following teble, "Summary of Derivative Instruments" for all derivative insfrumente heW by ttie entity at June 30,2010. If no derivative instruments were heki by the entity at June 30, please state "None".

39

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financial Stetement As of and for the year ended June 30,2010

Smnmary of Dmvativc Instmmcots

Changes in Fair Value Fair Value at June 30 Type Notioual Oassification Amount Clasafication Amount

hvestment Derivative Instruments: i none $

Fair Value Hedges: S wme

Ca^ Flow Hedges: i oone

if fair value is based on other than quoted market prices, the methods and significant assumptions used to estimate ttiose fair maricet values should be disdosed.

B. Investment Derivative Instruments

Investment derivative instruments indude derivative instmmente that are not eftedive or are no longer effective and cannot be classified as hedging derh/ative instruments. Separately list each investtnent derivative instrument induded in the teble above and discuss the exposure to risk ttx)m these investinents for the folfowing risks:

1. Credit Risk of Investment Derivative Instruments N/A

2. Interest Rate Risk of Investinent Derivative Instruments

Investment Malnritite Qn years) foves&BralDarivative Notional Fair

Ipstniroent Amount Vahie Less tiian 1 1--5 6 - 1 0 More than 10

Disdose the reterence rate for each investment derivative instrument along with any embedded options

N/A

3. Foreign Currency Risk of Investtnent Derivative Insttumente

40


Forejgp Currency

Fair Vahie in U.S. Dollais

Bonds Stocks

$

Total - $

4. RedassHication from Hedging Derivative Instilment to Investtnent Derivative Instrument

Item Reclas^ed

&ie£Eective @ luefiective @ Change inFair Noti(»ial 6/30/10 Fair Vahic @ 6/30/09 Fan- Value @ Value @ Amotmt (y/N) 6/30/10 (Y/N) 6/30/09 6/30/10

C. Hedging Derivative Insbiiments

Complete the following teble- Terms and Objectives of Hedging Derivative Instilments - for all hedging derivative insttnments held by ttie entity at June 30,2010.

Type

Terms and Objectives of Efedgii^ Derivative Instruments Effective Maturity

Notional Objective Date Date Tenns* Counteipartr Credit Rating

*Terms indude reference rates; emt}edded options, and the amount of cash paid or received, if any. when a fonward contract or swap (induding swaptions) was entered into.

Interest lates and tiie various s w ^ indices change over time. Use the schedule below to summarize payments on the swap and interest payments to bondholders for ^)pUcabIe hedging derivative instruments.

Icfed^ng Dcrivaidnre £istiunKDt

Counterparty Swap Payaoeiit

To Rrem Net

Interest P^njcnts to Bondholdeis Total Payments

41

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmJLANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

List each hedging derivative separately, and discuss the exposure to risk from these hedges for the foltowing risks:

1. Credit Risk of Hedging Derivative Instruments

2. Interest Rate Risk of Hedging Derivative Instruments

Investroent Maturities (m years) Ifedgrog Dexivaiive Jfctional Fair

LtistnniEixt Amount V^lue Lessthan 1 1-5 6-10 More than 10

3. Basis Risk of Hedging Derivative Instrumente

4. Tennination Risk of Hedging Derivative Instrumente

5. Rolkjver Risk of Hedging Derivative Insttuments

6. Maricet-Access Risk of Hedging Derivative Instrumente

7. Foreign Currency Risk of Hedging Derivative Insttuments

42

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSn^ULANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

FaJT Value iu U.S. DoUais Fordcn Currency Bonds Stpcks

Total $ - $

If any hedged items are a debt obligation, then rte net cash flows are required to be disdosed In accordance witti GASB Stetement No. 38, paragraphs 10 -11 . This infomiation, if applicable, should be provided betow, and will be induded in Note 8 of the CAFR.

Using the foltowing chart, provkte the prindpal and interest requiremente to maturity for ttiose hedged items that are a debt obligation. Ifyourfiscalyearendsotherthan June 30. change the date within the teble. If the number of years for your debt to terminate exceeds the years listed, add those years to the teble (in 5 year incremente).

Debt and Lease Obligations for Hedged Debt (per GASB 38, paragraph 10)

Fiscal Year Ending June 30

2011 2012 2013 2014 2015 2016-2020 2021-202S 2026-2030 2031-2035 2036-2040

S

Total ~

Principal

-

S

_ _

biterest fki^ug'Oenvalive

Instnunents^ Net $ $

-

Total -----------

Note: The hedging derivative column retteds only net receipts/paymente on derivative instrumente that qualify for hedge accounting.

List any terms by which the Interest rates change for variable-rate debt

Using the following chart, provide the future minimum lease paymente for those hedged items that are obligations under capitel and noncancelable operating leases (per GASB 38, paragraph 11). If your fiscal year ends other ttian June 30, change the date wittiin the teble. If ttie number of years for your lease extends beyond tiie years listed, add those years to ttie teble (in 5 year incremente).

43


Fiscal YMirEbdittg j0ne3O

2011 2012 2013 2014 2015 2016-2020 2021-2025 202&-2030 2031-2035 2036-2040

$ _

Total

MJniiiuunl^tDre Lease Patyment

-

If effectiveness is determined by anottier quantitative method not identified in GASB Statement t4o. 53, provide ttie identtty and characteristics of the mettiod used, ttie range of crittcal terms tiie mettiod tolerates, and the actual critical terms of the hedge.

D. Contingent Features

Disdose any contingent features that are induded in derivative instrumente heki at the end of the reporting period. The required disclosures indude (1) the existence and nature of contingent feateres and the drcumstances in which the features could be triggered. (2) the aggregate lair value of derivative insttumente that contein those feateres. (3) the aggregate teir value of assete that woukj be required to be posted as collateral or transfened in accordance wftti the provisions related to ttie triggering of the contingent liabilities, and (4) the amount, if any, that has been posted as collateral by the govemment as of the end of the reporting period.

E Hybrid Instrumente

If your entity has any. hybrid insfatimente, disdosure of the companion instrument should foe consistent with disdosures required of similar transactions. Ust any hybrid instmmente below and provkle infonmation regarding any hybrid instrumente and a reference to where the required disdosures can be found. If the required disdosures are not presented elsewhere, pro\nde ttiose disdosures be\aw. If your entity does not have any hybrid instrumente, state "None".

F. Synttietic Guaranteed Investinent Contracte (SGICs)

If your entity has a fully benefit-responsive SGIC. ttien a description ofthe nattire of ttie SGIC and ttie SGIC*s feir value (induding separate disclosure of the fair value of the wrap contract and ttie fair value of the

44

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANSn'ULANE HEALTH SCIENCES CENTER Notes to the Financial Stetement A s o f a n d for the year ended J u n e 30,2010

conresponding underiying investinente) should be disdosed as of the end of ttie reportmg period. Provide those required disdosures beksw. If your entity does not have any, state "None".

5. POLICIES

Briefly describe the deposit and/or investment policies related to the custodial credit risk, credit risk of debt investmente, concentration of credit risk, interest rate risk, and Ibreign cun^ncy risk disdosed in this note. If no policy existe concerning the risks disdosed, please state that fact

Louisiana Cancer Research Center's current investment oolkrv complies with the state policv RS 33:2955

6. OTHER DISCLOSURES REQUIRED FOR INVESTMENTS

a. Investmente in pools managed by otiier govemmente or mutual fonds N/A

b. Securities underiying reverse repurchase agreemente N/A

c. Unrealized investment losses NONE

d. Commhm&its as of June 30, 2010, to resell securities under yield maintenance repurchase agreemente:

1. Carrying amount and maricet value at June 30 of securities to be resold N/A 2. Description of ttie terms of the agreement N/A

e. Losses during the year due to default by counterparties to deposit or investment transactions NONE

f. Amounte recovered from prfor-period losses which are not shown separately on the balance sheet

NONE

Legal or Contractual Prowsions for Reverse Repurchase Agreemente

g. Source of legal or contractual authorization for use of reverse repurchase agreemente N/A h. Significant vioJafions of legal or conttactual provisions for reverse repurchase agreemente that

occuned during the vear NONE

45

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financial Stetement As of and for the year ended June 30,2010

Reverse Repurchase Agreemente as of Year-End

i. Credit risk related to the reverse repurchase agreemente (otiier ttian yieM maintenance agreemente) outstending at year end, that is. the aggregate amount of reverse repurchase agreement obligations induding accrued interest compared to aggregate maricet value of the securfties underiying ttiose agreemente induding interest N/A

j . Commrttnente on June 30,2010 to repurchase securities under yiekJ maintenance agreemente NONE

k. Maricet value on June 30,2010 ofthe securities to be repurchased N/A

1. Description of the terms ofthe agreemente to repurchase N/A

m. Losses recognized during the year due to deteult by counterparties to reverse repurchase agreemente NONE

n. Amounte recovered from prior-period losses whk:h are not separately shown on the operating statement NONE

Fair Value Disdosures fGASB 31)

0. Methods and signifteant assumptions used to estimate fair value of investmente, if feir value is not based on quoted maricet prices Fair value is based on quoted maricet prices

p. Basis for determining which investmente, if any, are reported at amortized cost N/A

q. For investinente in extemal investment pools ttiat are not SEC-registered, a brtef description of any regulatory oversight for ttie pool N/A

r. Whettier the feIr value of your investtnent In the extemal investment pool is ttie same as ttie value of the pool shares N/A

s. Any tnvoluntery partidpation in an extemal investinent pool NONE •

t If you are unable to obtein infomiation from a pool sponsor to determine the fair value of your investment in the pool, methods used and significant assumptions made in determining feir value and the reasons for having had to make such an estimate N/A

u. Any income from investmente assodated with one fond that is ass'^ned to another fond No

Land and Ottier Real Estate Held as Investtnente bv Endowmente fGASB 52>

V. Louisiana Cancer Researdi Center of LS.U. Healtti Science Center in New Orieans/ Tulane Healtti Sciences Center owns land or ottier real estate held as investtnente by endowmente. NO

46

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANSn'ULANE HEALTH SCIENCES CENTER Notes to the Financial Stetement A s o f and for the year ended June 30,2010

D. CAPITAL ASSETS - INCLUDING CAPITAL LEASE ASSETS

The fixed assete used in the Spedal Purpose Govemment Engaged only in Business-Type Activib'es are induded on the balance sheet of ttie entity and are capitalized at cost Depredation of all exhaustible fixed assete used by the entity is charged as an expense against operations. Accumulated depredatt'on is reported on the balance sheet Depreciab'on for finandal reporting purposes is computed by the sttaight tine mettiod over ttie usefol fives of the assete.

YearerdedJme 30,2009 RkrftoodAdustmgts

Aj.afta' AfjuGtad

Bdsnoe suliiilbdtD IteitstenEnts BElaue Bâxs gaOGDOB OSfWf^cpj (ôr-i 6f30r2DOB AtKions Tiair fat f ffefijemerts. gaCCDOO

Lard $ 671,808 $ MxKfefiBaaUelard iniFHDyiQnnerts C^fiblbBdccflediore QMStnjcSoninpiDgess 11,S33,(70

Tdaf cspitd assets notbdig d^xedatai

OttKTcapBal ssefe Mdi re iy andeqiqpmert LessaoomÊlBd depieoEticn Tobl Mdfriery aidequpmont

BiAfiigs and inoproefTErte Less aoamdalBddQpiBciafion T d ^ hddiiiQs aidirrfnweffierts

CbpreoîB bnd impowineils LGssacanuIalBddepiedsecn

T d ^ tfepaidbtelanJ JnpiDvBrrtnls

Irffastncture Lessacamibteddqjiecfeftn Tdal irii SGtnicttJiB

Ibtal otTET CEKital asssb

C&pBal AaetSiffi iTBy: Qfi tal assels rat bnig cfapfBctated Oherc^jitd assets^ atcost

Toted oast (f cafHi assets

LessaconiiEted (fepsdsticn

Coital assets rei

1 2 m m

4SflR.134

^414,862

-

—

-.

-

-

-

-

_ _ _

-

Z4Vi0SZ

1Z2W378 45SB.134

16i8GB;D12

$ 14619,730$

_

_

-*

- $

-

^

-

~

- S

i s n f f B $ $

11.533ff?D 27.fiE9.039

U20t378 27.8G9XI38

$ 671,608

39,39^109

4SBB.134

24143S

279,073 (657,29^

pfiR223)

Z4148S2

122M,878 4896.134

f3B8323)

27,869,039 2?9J73

16i80B.O12 26^138,112

ciBâa ms9st

S 14619.730 $ 27.4?D.816 $

_

-

-

-

4Q,063;9I7

4377.207 (2.8St578

zoaa629

-

-

-

_ _ _

-

-

_

-

~-

; - $

-

_

-

~

- $

-

2,03^629

4);064917

4,ff?7,2I7 44,941,124

•«,ogas46

* ShoJd be lEBd orfy t i r IhDse ccTTfleiBd pqads conrirg ojt cf ODHS^ wJ9i teffEfers repoilEd elsewhoB in 0 » pedct

47

http://27.fiE9.039

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financial Statement A s o f a n d for the year ended J u n e 30,2010

If other intengible assete were reported in the teble above, list the types of intengible assete, their cost, and accumulated amortization for each type of intengibte asset reported.

E. INVENTORIES-N/A

F. RESTRICTED ASSETS - N/A

G. LEAVE

1. COMPENSATED ABSENCES

The Louisiana Cancer Research Center has the following poUcy on annual and side leave:

Employees of the center accrue leave immediately upon hire, but at varying ra t^ based on dassification and years of service. Vacation and sick time are accrued on a monthly basis. Upon tennination, employees will be paid for accrued vacation leave to be calculated at the employee's hourly rate upon termination. Accrued annual and sick leave at June 30,2010 amount to $65,991.

2. COMPENSATORY LEAVE - N/A

H. RETIREMENT SYSTEM

All foil-time Research Center employees are eligible to partidpate in a 403(b) retirement plan. The existing 403(b) plan is a tax-sheltered annuity (TSA) plan, currentiy administered by TIAA-CREF. Atthough eligible employees are not required to partidpate in ttie Plan, conttibutions are made by ttie Research Center as part of the esteblished benefite package. The Plan also allows for empfoyee contiibutions with a matching requirement up to 3% of ttie employee's annual compensation. The Research Center contributed $58,698 to the Plan for the year ended June 30,2010.

I. OTHER POSTEMPLOYMENT BENEFITS (OPEB) - N/A

J. LEASES

NOTE: Where five-year amounte are requested, list the total amount fsum) for the five-year period, not the annual annount for each of the five years.)

1. OPERATING LEASES

48

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmiLANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

The fotel paymente for operating leases during fiscal year 2010 amounted to $ 80,000. (Note: If tease payments extend past FY 2024, create additional columns and report these future minimuni tease payments in five year increments.) A schedule of paymente for operating leases follows:

FY2015- FY2020-Nature of lease FY 2011 FY 2012 FY 2013 FY 2014 2019 2024 Office Stace $ $ $ $ $ $ Equipmait ,,, _»„_____-Land 104,587 129.174 129.174 129,174 645,870 645,870 Ottier

Total $ 104.587 $ 129.174 $ 129.174 $ 129.174 $ 645.870 $ 645370

2. CAPITAL LEASES

Capitel leases are not recognized in the accompanying finandal statemente.

K. LONG-TERM UABILTTIES - N/A

L CONTINGBIT LIABIUTIES - Nf A

M. RELATED PARTY TRANSACTIONS

Louisiana Gene Therapy Research Consortium

The Louisiana Cancer Research Center of LSU Health Sciences Center in New Orteans/Tulane Health Sdences Center (ttie 'Research Center^ and the Louisiana Gene Therapy Research Center (LGTRC) have an aflSiate relationship as ttiey are botti parttierships between ttie LSU Healtti Sdences Center in New Orleans and the Tulane Healtti Sdences Center. LGTRC indudes both LSU Heatth Sdences Center in New Orleans and in Shreveport and Tulane Health Sciences Center as partoers while the Research Center includes LS.U. Health Sdences Center in New eans, Tulane Univ^sify Health Sdences Center and Xavier University of Louisiana, which are govemed by governing boards with common members.

The Research Center has an arrangement with the LGTRC that allows for resource cost sharing. The Center and LGTRC share office space, personnel, and other related suppHes and services. Overhead expenses are captured in a cost (common cost) pool and allocated to the appropriate organizatt'on based on space, usage, and "percent of efforts where applicable. LGTRC pays all shared expenses on t}ehalf of the Research Center's research and cessation componente. The Research Center reimburses LGTRC based on billings. The totet billed to the Center forthe fiscal year ended June 30.2010 was $596,549.

LSU Health Sciences Center in New Oilearis

LSU Healtti Sdences ( ^ t e r in New Orieans (LSUHSC) is one of ttie four partner institutions that comprise the Research Center. The ottier institutions are Tulane University Healtti Sdences Center (TUHSC) and Xavier University of lbuisiana (XULA).

As management two members of the LSUHSC are on the governing boanj of the Research Center. The Chancellor for LSU Health Sdences Center in New Orieans served as the Chaimian of the Board for the year

49

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW O R L E A N S m i L A N E HEALTH SCIENCES CENTER Notes to the Rnanc ia l Stetement A s o f and for the year ended June 30,2010

ending June 30, 2010. The Chairman position rotetes between ttie two Healtti Sdences Center's (LSUHSC and TUHSC) Leaders as dictated by slattilB. The Vice Chancellor for Academic Affairs of LSU Heatth Sdences Center in New Orieans is also a voting memt>er of the Research Center's Boand.

LSUHSC (an entity of the State) is the transfenring agency for state fonding, acting on behalf of the State of Louisiana. Under a Cooperative Endeavor Agreement arrangement, it is responsible for transterring fonds appropriated by the State of Louisiana for the Research Center.

As grantee, ttie LSUHSC is allocated Research Center fonding support for program development (part of the missfon of the Research Center). Transfer of fonds to LSUHSC for ttie pnagram is govemed by a folly executed operating agreement which indudes an annual budget submitted by LSU Healtti Sdences Center in New Orieans and approved by tine Research Center's Board. TTie total amount billed to the Research Center for. services rendered during the fiscal year ended June 30,2010 was $2,996,896.

As a vendor, LSUHSC Auxiliary Stores provide goods and services (induding research equipment office and computer supplies) to the Research Center. The stores convenientiy provide producte and sen/ices which supporte ttie mission of ttie Research Center. The totel amount billed to ttie Research Center for goods and services during the fiscal year endir^ June 30,2010 was $6,878.

Tulane Universitv Health Sciences Center

Tulane University Heatth Sdences Center (TUHSC) is one of ttie three partner insttttjtions that comprise ttie Research Center. The other instihitions are LSU Healtti Sdences Center in New Orieans (LSUHSC) and Xavier University of Louisiana (XULA).

As management two members of TUHSC are on the governing board of the Research Center. TUHSC's Senfor Vice President for Healtti Sdences served as VFce-Chaimian of the Board for ttie fiscal year ending June 30,2010. The ottier TUHSC position was held by the Associate Dean for School of Medidne.

As grantee, TUHSC is allocated Research Center fonding support for program development (part of ttie mission of ttie Research Center). Transfer of fonds to TUHSC for the program is govemed by a folly executed operating agreement which indudes an annual budget submitted by TUHSC and approved by the Research Center's Board. TTie totel amount billed to the Research Center for services rendered during the fiscal year ended June 30, 2010 was $3,769,639.

Xavier Universitv of Louisiana

Xavier University of Louisiana (XULA) is one of the three partner institutions that comprise the Research Center. The ottier two instihitions are the LSU Heatth Sdences Center in New Orieans (LSUHSC) and Tulane University Healtti Sciences Center (TUHSC).

As management one member of XULA is on the governing board of the Research Center. Xavier's President served as Boanj member for ttie fiscal year ending June 30,2010.

As grantee, Xavter Universify of Louisiana is allocated Researdi Center fonding support for program development (part of ttie missbn of the Research Center). Transfer of fonds to XULA for the program is govemed by a folly executed operattng agreement which includes an annual budget submitted by XULA and approved by the Research Center's Board. The tistal amount billed to the Research Center for services rendered during the fiscal year ended June 30,2010 was $1,083,867.

Ochsner Healthcare System

Ochsner Healtticare System (Ochsner) is one of the four partner instihitions that comprise the Center, joining ttie Center in March 2010. TTie ottier instihitions are ttie LSU Healtti Sciences Center in New Orieans (LSUHSC), Tulane University Healtti Sdences Center (TUHSC) and Xavier University of Louisiana (XULA).

As management one member of Ochsner is on ttie goveming board of ttie Center.

N. ACCOUNTING CHANGES - N/A

50

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmJLANE HEALTH SCIENCES CENTER Notes to the Financial Stetement As of and for the year ended June 30,2010

O. IN^ND CONTRIBUTIONS-N/A

P. DEFEASED ISSUES- N/A

a REVENUES - PLEDGED OR SOLD (GASB 48) - N/A

R. GOVERNMENT-MANDATED NONEXCHANGE TRANSACTIONS (GRANTS) - N/A

S. VIOLATIONS OF FINANCE-RELATED LEGAL OR CONTRACTUAL PROVISIONS - N/A

T. SHORT-TERM DEBT-N/A

U. DISAGGREGATION OF RECEIVABLE BALANCES

Recavabtes at June 30,2010, were as follows:

Receivables Fund Customer from ottier Other Total

faen. lund, gas taxfond, etc) Recei>ables Taxes Govemments Receivables Receivables Cancer Research Program Cessation Pmgram F^dli^ Planning & Control

Gross rece'nables Less allovrance for uncollec&ble

accounts Receivables, net

$ 4367.872 $ 2,979,949 3.483,952

$ 10.831.773 $

$ 10,831,773 $

$

. $

- $

$

- $

- . $ -

26,799 $ 4,394,671 2.979,949 3,483,952

- $

26.799.00 $ 10,858,572

Amounts not scheduled for collection dunng ttie

V. DISAGGREGATION OF PAYABLE BALANCES

Payables at June 30.2010, were as follows:

Salaries and Axrued Ottier Total

Fund Vendors Benefite Interest Psyabtes Raysbles Cancer Research Rpgram $ 1,779.463 $ $ $ 65.991 $ 1.845.454 Cessation Program 1.451.441 1,451,441 l^dlity Planning & Control 3,483.952 3.483,952

Total p^afates $ 6,714.856 $ ^ $ - $ 65.991 $ 6.780.847

51

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L S . U . HEALTH SCIENCES CENTER IN NEW ORLEANS/TULANE HEALTH SCIENCES CENTER Notes to the Financial Stetement A s o f a n d for the year ended June 30,2010

W. SUBSEQUENT EVENTS- N/A

X. SEGMENT INFORMATION - N/A

Y. DUE TO/DUE FROM AND TRANSFERS-N/A

Z. LIABILmES PAYABLE FROM RESTRICTED ASSETS-N/A

AA. PRIOR-YE/VR RESTATEMENT OF NET ASSETS-N/A

BB. NET ASSETS RESTRICTED BY ENABUNG LEGISLATION (GASB STATEMENT 46) - N/A

CC. IMPAIRMENT OF CAPITAL ASSETS & INSURANCE RECOVERIES - N/A

DD. EMPLOYEE TERMINATION BENEFITS

Termination benefite are benefite, otiier than salaries and wages that are provided by employers as setttemeit for involuntery terminations initiated by management or as an incentive for vduntery terminations initiated by employees. Voluntary tenmination benefite indude benefite such as enhanced early retirement options resulting from an approved eariy retirement plan.

Ottier termination benefite paid as part of a plan, as described above, may indude:

1. Early retirement incentives, such as cash paymente, enhancement to defined benefit formula 2. Heatthcare coverage when none would ottienvise be provided (COBRA) 3. Compensated atisences, induding paymente for leave balances 4. Paymente due to early release from employment contracte

GASB 47 requires the following disdosures about an employer's accounting for employee termination benefite:

1. A description of the tennination benefit anangement(s) 2. Period the employer becomes obligated 3. Number of employees affected 4. Cost of termination benefite 5. Type of benefit(s) provided 6. The period of time over v^ich the benefite are expected to be provided 7. If the tennination benefit affocte the defined benefit pension (OPEB) obligations, disdose the change in the

actijarial accrued liability for the pension or OPEB pten atbibuteble to the termination benefit 8. When termination liabiRties are reported, disdose the significant mettiods and assumptions used to

determine ttie liabilities to be disdosed (for as long as ttie liability is reported)

The GASB 47 note disclosures listed below are provided as an exampte and should be modified as necessary.

52

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSmJLANE HEALTH SCIENCES CENTER Notes to the Financial Statement As of and for the year ended June 30,2010

Substentially all employees are eligible for termination benefite upon separation from the state. The agency recognizes the cost of providing these benefite as expenditeres when paid during the year. For the year ended June 30 2010, ttie cost of providing those benefite for 0 vofontery terminatt'ons totaled $0. For the year ended June 30 2010, tiie cost of providing those benefite for 0 involuntery terminations toteled $0.

The liability for the accrued voluntery terminations benefite payable at June 30. 2010 is $0. This liability conslste of 0 voluntery tennninations. Tlie liability for the accrued involuntery terminations benetite payable at June 30.2010 is $0. This liability consiste of 0 involuntery terminations.

If a termination benefit is not recognized because tiie expected benefite are not estimabte, the employer should disclose that focL Briefiy describe termination benefite provided to employees as discussed above. If none, please state that fact

The Louisiana Cancer Research Center compensates employees for accrued vacation leave balances upon voluntaiy or Involuntary tennination. Although employees can continue to access health benefits under COBRA, the entire premium is paid by the employee if he/she wishes to continue coverage. Tliere are no other tennination benefite provided by the Louisiana Cancer Research Center.

A terminated employee can continue to access health t>enefite, however, if the COBRA participant is paying the ENTIRE premium then ttiere is no stete conttibution on behalf of this individual. Therefore, when a terminated emj toyee pays 100% ofthe premium, the state vrauld not have a termination liability.

EE. POLLUTION REMEDIATION OBUGATIONS-N/A

FF. AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) - N/A

53

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW

ORLEANS/TULANE HEALTH SCIENCES CENTER SCHEDULE OF PER DIEM PAID TO BOARD MEMBERS

June 30,2010

Name Amount

NONE $

Totel

Note; The per diem paymente are auttiorized by Louisiana Revised Statute, and are presented in compfiance viritti House Concurrent Resolution No. 54 ofthe 1979 Session of ttie Legislature.

SCHEDULE 1

54

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW

ORLEANSmJLANE HEALTH SCIENCES CENTER SCHEDULE OF NOTES PAYABLE

June 30,2010

Prindpal Prindpal Interest Date of Original Outstending Redeemed Outstanding Interest Outstanding

Issue Issue Issue 6/30/PY (Issued) 6/30/CY Rates 6/30/CY

NONE .$ $ $_

Totel

*Send copies of new amortization schedules

SCHEDULE 3-A

55

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L^.U. HEALTH SCIENCES CENTER IN NEW

ORLEANS/TULANE HEALTH SCIENCES CENTER SCHEDULE OF BONDS PAYABLE

June 30,2010

Issue

Prindpal Dateof Original Outstending Redeemed Issue Issue 6/30/PY (Issued)

Prindpal Outstending

6/30/CY Interest Rates

Interest Outstending

6/30/CY

NONE $ $ $

Totel

*Send copies of new amortization schedules

SCHEDULE 3-B

56


ORLEANS/TULANE HEALTH SCIENCES CENTER SCHEDULE OF CAPfTAL LEASE AMORTIZATION

For The Year Ended June 30,2010

Ending: Payment

2010

2011

2012

2013

2014

2015-2019

2020-2024

2025-2029

2030-2034

Totel

* -

* _

NONE $

$

Interest Prindpal Balance

_ $

SCHEDULE 4-A

57


ORLEANSmJLANE HEALTH SCIENCES CENTER SCHEDULE OF NOTES PAYABLE AMORTIZATION


Fiscal Year Eodiog: Edodpal I O J B I ^

2010 $ NONE

2011

2012

2013

2014

201&-2019

2020-2024

2025-2029

2030-2034

Totel

SCHEDULE 4-B

58

STATE OF LOUISIANA LOUISIANA CANCER RESEARCH CENTER OF L.S.U. HEALTH SCIENCES CENTER IN NEW

ORLEANSmJLANE HEALTH SCIENCES CENTER SCHEDULE OF BONDS PAYABLE AMORTIZATION

For The Year Ended June 30,2010

Fiscal Year

Endino: Prindpal Interest

2010 $ NONE $

2011 ;

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

Totel

SCHEDULE 4-C

59

STATE OF LOUISIANA

LOUISIANA CANCER RESEARCH CENTER OF LS.U. HEALTH SCIENCES CENTER IN NEW ORLEANSn'ULANE HEALTH SCIENCES CENTER

COMPARISON FIGURES

To assist OSR/VP in determining the reason for the change in financial position for ttie State, please complete ttie schedule below. If ttte change is greater ttian $1 million, explain ttie reason for the change.

1) Revenues

Expenses

2) Capitel assete

Long-term debt

Net Assete $

;?oio

43.457.482

17.538,114

42.090,546

71.525,564

2009

$ 21,900,008

17.811.430

14,619.730

45,591,320

Difterence

$ 21.557,474

(237.316)

27.470,816

25.934.244

Percentege Chanoe

98%

(2%^

188%

57%

The increase in revenue is due to tfie additional grant money to reimburse construcb'on coste incurred in the CY on the new building. The increase in Capitel assete is related to the above mentioned increase in constiuction in

Explanation for change: ttieCY.

SCHEDULE 15

60

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