OFFICIAL STATEMENT
RATINGS: Moody’s: “Aa2”
Fitch: “AA”
(See “MISCELLANEOUS -Ratings” herein)
NEW ISSUE
BOOK-ENTRY-ONLY
In the opinion of Pope Flynn, LLC, Bond Counsel, assuming continuing compliance by the Clemson University with certain
covenants and the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Series 2015B Bonds
is excludable from gross income of the owners thereof for federal income tax purposes under existing statutes, regulations, and judicial
decisions. In addition, such interest is not a specific item of tax preference for purposes of the federal alternative minimum tax imposed
on corporations and other taxpayers, including individuals. Further, the Series 2015B Bonds and the interest thereon will be exempt
from all State, county, municipal, school district and other taxes or assessments imposed within the State of South Carolina, direct or
indirect, general or special, whether imposed for the purpose of general revenue or otherwise, except estate or other transfer taxes, and
certain fees or franchise taxes. See “LEGAL MATTERS – Tax Exemption and Other Tax Matters” for a brief description of certain
provisions of the Code that may affect the tax treatment of the interest on the Series 2015B Bonds for certain owners thereof.
$191,000,000
CLEMSON University, SOUTH CAROLINA
HIGHER EDUCATION REVENUE BONDS,
SERIES 2015B
Dated: December 1, 2015
Due: May 1, As Shown On The Inside Cover
Clemson University (the “University”) is issuing its $191,000,000 Higher Education Revenue Bonds, Series 2015B (the “Series 2015B
Bonds”), (i) to defray a portion of the costs of additional student housing facilities on the campus of the University, as well as dining, bookstore,
retail, and other auxiliary facilities and services on the University’s campus, known as the Douthit Hills Project; (ii) to pay capitalized interest
during the construction of the Douthit Hills Project; and (iii) to pay the cost of issuance of the Series 2015B Bonds. See “THE SERIES 2015B
BONDS – The Douthit Hills Project” and “-Estimated Sources and Use of Proceeds” herein for more information regarding the purposes of the
Series 2015B Bonds.
The Series 2015B Bonds are issuable as fully-registered bonds in the denomination of $5,000 or any integral multiple thereof in the name
of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the
Series 2015B Bonds under a book-entry-only system maintained by DTC through brokers and dealers who are, or act through, DTC participants.
Purchasers will not be entitled to receive physical delivery of the Series 2015B Bonds. For so long as any purchaser is the beneficial owner of
a Series 2015B Bond, such purchaser must maintain an account with a broker or dealer who is, or acts through, a DTC participant in order to
receive payment of principal of and interest on such Series 2015B Bond. The Series 2015B Bonds mature in each of the years and in the amounts,
and bear interest at the rates as set forth on the inside cover page hereof. Interest on the Series 2015B Bonds is payable semiannually on each
May 1 and November 1, commencing May 1, 2016. The Office of the State Treasurer of the State of South Carolina will serve as Trustee for the
Series 2015B Bonds. U.S. Bank National Association in Columbia, South Carolina, will serve as the Registrar and Paying Agent for the Series
2015B Bonds.
The Series 2015B Bonds are subject to redemption prior to maturity as described herein. Capitalized terms used and not otherwise defined
on this cover page shall have the meanings given to such terms in the body of this Official Statement and Appendix B hereto, to which attention
is directed.
The Series 2015B Bonds are limited obligations of the University and are payable solely from and secured by a pledge of the Net Revenues
and Additional Funds on a parity with the pledge securing all Outstanding Bonds heretofore and hereafter issued pursuant to the Resolution.
THE SERIES 2015B BONDS ARE NOT GENERAL OBLIGATIONS OF THE STATE OF SOUTH CAROLINA (THE
“STATE”) AND DO NOT IN ANY EVENT CONSTITUTE AN INDEBTEDNESS OF THE STATE WITHIN THE MEANING OF
ANY PROVISION, LIMITATION, OR RESTRICTION OF THE CONSTITUTION OR LAWS OF THE STATE (OTHER THAN
ARTICLE X, SECTION 13(9) OF THE SOUTH CAROLINA CONSTITUTION AUTHORIZING OBLIGATIONS PAYABLE FROM
A REVENUE PRODUCING SOURCE NOT INVOLVING ANY TAX), NOR A CHARGE, LIEN, OR ENCUMBRANCE, LEGAL
OR EQUITABLE, UPON ANY PROPERTY OF THE UNIVERSITY OR THE STATE OR UPON ANY INCOME, RECEIPTS OR
REVENUES OF THE UNIVERSITY OR THE STATE, SAVE AND EXCEPT THE PLEDGE OF THE NET REVENUES AND
ADDITIONAL FUNDS TO SECURE THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE SERIES 2015B BONDS,
AND NEITHER THE FULL FAITH AND CREDIT OF THE UNIVERSITY, THE STATE, OR ANY POLITICAL SUBDIVISION OF
THE STATE, NOR THE TAXING POWER OF THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE, ARE PLEDGED
FOR THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE SERIES 2015B BONDS. THE UNIVERSITY DOES NOT
HAVE TAXING POWER.
This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors should read the entire
Official Statement to obtain information essential to the making of an informed investment decision.
The Series 2015B Bonds are offered when, as, and if issued and received by the Underwriter, subject to prior sale or to withdrawal or
modification of the offer without notice, and to the approval of legality by Pope Flynn, LLC, as Bond Counsel. Certain other legal matters will
be passed upon by Howell Linkous & Nettles, LLC, as Disclosure Counsel for the University; and by Chip Hood, Esquire, General Counsel to
the University. First Southwest Company has served as Financial Advisor to the University with respect to the Series 2015B Bonds. It is expected
that the Series 2015B Bonds will be available for delivery through the facilities of DTC on or about December 18, 2015.
Citigroup
Dated: December 9, 2015
MATURITY SCHEDULE
$191,000,000
CLEMSON UNIVERSITY, SOUTH CAROLINA
HIGHER EDUCATION REVENUE BONDS,
SERIES 2015B
Due
May 1
Principal
Amount
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
$4,200,000
4,410,000
4,630,000
4,860,000
5,105,000
5,360,000
5,625,000
5,905,000
6,200,000
5,510,000
5,660,000
5,945,000
Interest
Rate
Yield
5.000%
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
2.750
5.000
3.100
1.050%
1.300
1.460
1.650
1.820
2.000
2.120
2.200
2.280 C
2.720 C
2.520 C
3.060 C
CUSIP†
185633AY0
185633AZ7
185633BA1
185633BB9
185633BC7
185633BD5
185633BE3
185633BF0
185633BG8
185633BH6
185633BJ2
185633BK9
Due
May 1
Principal
Amount
Interest
Rate
Yield
CUSIP†
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
$6,130,000
6,310,000
6,500,000
6,695,000
6,895,000
7,105,000
7,325,000
7,620,000
7,925,000
8,240,000
8,570,000
3.000%
3.000
3.000
3.000
3.000
3.125
4.000
4.000
4.000
4.000
4.000
3.050%
3.120
3.150
3.210
3.210
3.300
3.250 C
3.320 C
3.360 C
3.380 C
3.400 C
185633BL7
185633BM5
185633BN3
185633BP8
185633BQ6
185633BR4
185633BS2
185633BT0
185633BU7
185633BV5
185633BW3
$48,275,000 4.000 % Term Bonds, due May 1, 2046, Yield 3.480 C %, CUSIP† 185633CB8
______________________________________________
C
Priced to the first optional call on May 1, 2026.
†
Copyright, American Bankers Association. CUSIP data herein are provided by Standard & Poor’s, CUSIP Service Bureau, a division of The McGrawHill Companies, Inc. The CUSIP numbers listed above are being provided solely for the convenience of Bondholders only at the time of issuance of the
Series 2015B Bonds and the University makes no representation with respect to such numbers nor undertakes any responsibility for their accuracy
now or at any time in the future. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Series 2015B Bonds as a
result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of
secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Series
2015B Bonds.
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the Series 2015B Bonds by any person in any jurisdiction in which it is unlawful to make such
offer, solicitation, or sale. No dealer, broker, salesperson, or other person has been authorized by the Board of
Trustees of Clemson University (the “Board of Trustees”) to give any information or to make any representation,
other than as contained in this Official Statement, in connection with the offering described herein, and if given or
made, such other information or representation must not be relied upon as having been authorized by the Board of
Trustees. This Official Statement is submitted in connection with the sale of the Series 2015B Bonds described
herein, and may not be reproduced, used, or relied upon, in whole or in part, for any other purpose.
CERTAIN INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT MAY HAVE BEEN
OBTAINED FROM SOURCES OTHER THAN RECORDS OF THE UNIVERSITY AND, WHILE
BELIEVED TO BE RELIABLE, IS NOT GUARANTEED AS TO COMPLETENESS OR ACCURACY. THE
INFORMATION AND EXPRESSIONS OF OPINION IN THIS OFFICIAL STATEMENT ARE SUBJECT
TO CHANGE, AND NEITHER THE DELIVERY OF THIS OFFICIAL STATEMENT NOR ANY SALE
MADE HEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN
THE AFFAIRS OF THE UNIVERSITY SINCE THE DATE HEREOF.
Reference herein to laws, rules, regulations, resolutions, agreements, reports, and other documents do not
purport to be comprehensive or definitive. All references to laws, rules, regulations, agreements, reports, and other
documents are qualified in their entirety by reference to the particular laws, rules, regulations, agreements, reports,
and other documents, the full text of which may contain qualifications of and exceptions to statements made herein.
Where full texts have not been included as appendices to this Official Statement, they will be furnished on request.
The Series 2015B Bonds will not be registered under the Securities Act of 1933, as amended, or any state
securities law, and the same will not be listed on any stock or other securities exchange. Neither the U.S. Securities
and Exchange Commission nor any other federal, state, or other governmental entity or agency will have passed
upon the accuracy or adequacy of this Official Statement or approved the Series 2015B Bonds for sale. Any
representation to the contrary is a criminal offense.
i
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN
EXAMINATION OF THE UNIVERSITY AND THE TERMS OF THE OFFERING, INCLUDING THE
MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY
FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR
DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
CAUTIONARY STATEMENTS REGARDING
FORWARD-LOOKING STATEMENTS IN
THIS OFFICIAL STATEMENT
This Official Statement contains statements which should be considered “forward-looking statements,”
meaning they refer to possible future events or conditions. Such statements are generally identifiable by the use of
the future tense or by terms such as “may,” “intend,” “will,” “expect,” “forecast,” “project,” “anticipate,” “estimate,”
“plan,” “budget,” “believe,” “should,” “strategy,” “position,” or the negative of such terms or variations of such
words or similar expressions. In particular, any statements, express or implied, concerning future operating results or
the ability to generate Net Revenues or Additional Funds to service indebtedness are forward-looking statements.
Investors are cautioned that reliance on any of those forward-looking statements involves risks and uncertainties and
that, although the University’s management believes that the assumptions on which those forward-looking
statements are based are reasonable, any of those assumptions could prove to be inaccurate. Those forward-looking
statements, including forecasts, projections, and estimates, are based on currently available information,
expectations, estimates, assumptions, and projections, and management’s judgment about future enrollment,
expenses of operations, and general economic conditions. The forward-looking statements are not guarantees of
future performance. Actual results may vary materially and adversely from what is contained in a forward-looking
statement. Factors which may cause results different from those expected or anticipated include, among others,
decrease in student enrollment, reduction in student demands for housing, increases in housing competition,
increases in costs of operation, decreases in levels of State financial support, general economic and business
conditions, and various other events, conditions, and circumstances, many of which are beyond the control of the
University. As a result, the forward-looking statements based on those assumptions also could be incorrect, and
actual results may differ materially and adversely from any results indicated or suggested by those assumptions.
Although the University believes in making any such forward-looking statement, and its expectations are
based on assumptions considered reasonable by the University, any such forward-looking statement involves
uncertainties and is qualified in its entirety by reference to factors both identified within this Official Statement and
from publicly available sources about trends in higher education that could cause the actual financial operating
results of the University to differ materially and adversely from those contemplated in such forward-looking
statements.
Any forward-looking statement speaks only as of the date such statement is made, and the University
undertakes no obligation to update any forward-looking statement in this Official Statement to reflect events or
circumstances after the date of this Official Statement or to reflect the occurrence of unanticipated events. New
factors arise or emerge from time to time, and it is not possible for the University to predict all such factors, nor can
it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause
results to differ materially and adversely from those contained in any forward-looking statement.
ii
CLEMSON UNIVERSITY, SOUTH CAROLINA
BOARD OF TRUSTEES
E. Smyth McKissick, III, Chairman
John N. (Nicky) McCarter, Vice Chairman
David E. Dukes
Leon J. (Bill) Hendrix, Jr.
Ronald D. (Ronnie) Lee
Louis B. Lynn
Patricia (Patti) Herring McAbee
Robert (Bob) L. Peeler
Mark S. Richardson
William (Bill) C. Smith, Jr.
Joseph (Joe) D. Swann
Kim Wilkerson
David H. Wilkins
EXECUTIVE OFFICERS
James P. Clements, President
Robert H. Jones, Executive Vice President for Academic Affairs and Provost
A. Neil Cameron, Jr., Vice President for Advancement
George Askew, Vice President for Public Service and Agriculture
Larry Dooley, Interim Vice President for Research
Almeda R. Jacks, Vice President for Student Affairs
Chip Hood, General Counsel
Max Allen, Assistant to the President, Chief of Staff, Interim Chief Diversity Officer
Brett A. Dalton, Vice President for Finance and Operations
Dan Radakovich, Director of Athletics
Michelle Piekutowski, Chief Human Resources Officer
Angela E. Leidinger, Executive Secretary to the Board of Trustees and Executive Director of Governmental Affairs
Catherine T. Sams, Chief Public Affairs Officer and Assistant to the President
BOND COUNSEL
Pope Flynn, LLC, Columbia, South Carolina
DISCLOSURE COUNSEL
Howell Linkous & Nettles, LLC, Charleston, South Carolina
FINANCIAL ADVISOR
First Southwest Company, Charlotte, North Carolina
iii
TABLE OF CONTENTS
SUMMARY STATEMENT .........................................................................................................................................vi
THE SERIES 2015 BONDS.......................................................................................................................................... 1
General ....................................................................................................................................................................... 1
Use of Proceeds ......................................................................................................................................................... 1
Authorization ............................................................................................................................................................. 1
Redemption ................................................................................................................................................................ 2
Book-Entry-Only System........................................................................................................................................... 3
The Douthit Hills Project ........................................................................................................................................... 3
Estimated Sources and Uses of Proceeds ................................................................................................................... 4
SECURITY FOR THE SERIES 2015B BONDS .......................................................................................................... 4
Pledge of Net Revenues and Additional Funds.......................................................................................................... 5
Rate Covenants .......................................................................................................................................................... 6
Additional Covenants................................................................................................................................................. 6
Flow of Funds ............................................................................................................................................................ 7
Additional Bonds ....................................................................................................................................................... 8
Junior Lien Bonds ...................................................................................................................................................... 8
Right to Sell and Dispose of Facilities ....................................................................................................................... 9
THE FACILITIES ......................................................................................................................................................... 9
Facilities ..................................................................................................................................................................... 9
Additional Facilities ................................................................................................................................................... 9
Description of the Existing Facilities ........................................................................................................................ 10
SUMMARY OF NET REVENUES ............................................................................................................................ 13
ADDITIONAL FUNDS .............................................................................................................................................. 13
General ..................................................................................................................................................................... 13
University Fee Receipts ........................................................................................................................................... 14
OUTSTANDING REVENUE BOND DEBT............................................................................................................... 14
Debt Service Coverage ............................................................................................................................................ 14
Debt Service Requirements...................................................................................................................................... 15
DESCRIPTION OF CLEMSON UNIVERSITY ........................................................................................................ 16
General ..................................................................................................................................................................... 16
Organization and Administration ............................................................................................................................. 17
Faculty Members ..................................................................................................................................................... 20
Staff Members.......................................................................................................................................................... 21
Student Enrollment and Applications ...................................................................................................................... 21
Applications, Admissions and Matriculations ......................................................................................................... 22
Average SAT Scores ................................................................................................................................................ 23
Tuition and Fees at the University ........................................................................................................................... 23
OTHER FINANCIAL MATTERS .............................................................................................................................. 24
Five-Year Summary of Revenues and Expenditures ................................................................................................. 24
Budgeting Procedure................................................................................................................................................ 26
State Support and Its Effect ..................................................................................................................................... 27
Pension Plans ........................................................................................................................................................... 28
Physical Plant........................................................................................................................................................... 30
Insurance .................................................................................................................................................................. 30
Tort Liability and Insurance..................................................................................................................................... 31
DEBT STRUCTURE OF THE UNIVERSITY ........................................................................................................... 31
Outstanding Debt ..................................................................................................................................................... 31
Future Debt Issuances .............................................................................................................................................. 32
Debt Payment Record .............................................................................................................................................. 32
LEGAL MATTERS .................................................................................................................................................... 32
Litigation.................................................................................................................................................................. 32
United States Bankruptcy Code ............................................................................................................................... 33
Legal Proceedings .................................................................................................................................................... 33
Tax Exemption and Other Tax Matters.................................................................................................................... 33
iv
Original Issue Premium ........................................................................................................................................... 35
Original Issue Discount............................................................................................................................................ 36
State Tax Exemption ................................................................................................................................................ 36
MISCELLANEOUS .................................................................................................................................................... 36
Underwriting ............................................................................................................................................................ 36
Ratings ..................................................................................................................................................................... 36
Independent Audits and Other Financial Information.............................................................................................. 37
Continuing Disclosure ............................................................................................................................................. 37
Paying Agent’s Disclaimer ...................................................................................................................................... 38
Closing Certifications .............................................................................................................................................. 38
Financial Advisor ..................................................................................................................................................... 39
CONCLUSION ........................................................................................................................................................... 39
Appendix A: Audited Financial Statements of the University for Fiscal Year Ended June 30, 2015 ............................ A-1
Appendix B: Summary of Certain Provisions of Bond Resolution ................................................................................. B-1
Appendix C: Form of Opinion of Bond Counsel ............................................................................................................. C-1
Appendix D: Form of Continuing Disclosure Undertaking ............................................................................................. D-1
Appendix E: DTC and Book-Entry-Only System .............................................................................................................E-1
v
SUMMARY STATEMENT
The following Summary Statement is qualified in its entirety by the more detailed information and financial statements contained
elsewhere in this Official Statement and the Appendices hereto (collectively, the “Official Statement”). The Official Statement,
including the cover page, the inside cover page and the attached Appendices, contains specific information relating to the Series
2015B Bonds, the University, and other information pertinent to this issue. See Appendix A for the Comprehensive Annual Financial
Report of the University, including the University’s Annual Financial Statement for Fiscal Year ended June 30, 2015 with
Independent Auditor’s Report thereon. Unless otherwise defined in this Official Statement, all capitalized terms shall have the
meanings ascribed to them in Appendix B. The offering of the Series 2015B Bonds to potential investors is made only by means of
this entire Official Statement, and no person is authorized to detach this Summary Statement from this Official Statement or to
otherwise use it without the entire Official Statement.
The Issuer
Clemson University (the “University”) is a State-supported land grant institution located in Clemson,
South Carolina. Initially established by the General Assembly of the State of South Carolina in 1889, the
University is governed by the Board of Trustees (the “Board of Trustees”), a body politic and corporate of
the State. See “DESCRIPTION OF CLEMSON UNIVERSITY” herein for additional information
regarding the University and the Board of Trustees.
Series 2015B Bonds
General. The University’s $191,000,000 Higher Education Revenue Bonds, Series 2015B (the “Series
2015B Bonds”), are being issued initially as fully-registered bonds in the name of Cede & Co., as nominee of
The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for
the Series 2015B Bonds under a book-entry-only system maintained by DTC through brokers and dealers
who are, or act through, DTC participants. Purchasers will not be entitled to receive physical delivery of
the Series 2015B Bonds. For so long as any purchaser is the beneficial owner of a Series 2015B Bond,
such purchaser must maintain an account with a broker or dealer who is, or acts through, a DTC
participant in order to receive payment of principal of and interest on such Series 2015B Bond. See “THE
SERIES 2015B BONDS– Book-Entry-Only System” and Appendix E herein.
Date of Issue and Delivery. The Series 2015B Bonds will be dated December 1, 2015. It is expected that the
Series 2015B Bonds will be available for delivery through the facilities of DTC on or about December 18,
2015.
Interest Payments. Interest on the Series 2015B Bonds is payable on each May 1 and November 1,
commencing May 1, 2016.
Maturities. The Series 2015B Bonds mature as set forth on the inside cover page hereof.
Redemption. The Series 2015B Bonds will be subject to redemption prior to maturity as described herein
under “THE SERIES 2015B BONDS – Redemption.”
Security
The Series 2015B Bonds are payable solely from and are secured by a pledge of the Net Revenues and
Additional Funds on a parity with the pledge securing all Outstanding Bonds heretofore or hereafter
issued pursuant to the Resolution.
The Series 2015B Bonds are not general obligations of the State of South Carolina (the “State”) and do
not in any event constitute an indebtedness of the State within the meaning of any provision, limitation,
or restriction of the constitution or statutes of the State (other than Article X, Section 13(9) of the South
Carolina Constitution authorizing obligations payable from a revenue producing source not involving
any tax), nor a charge, lien, or encumbrance, legal or equitable, upon any property of the University or
the State or upon any income, receipts or revenues of the University or the State, save and except the
pledge of the Net Revenues and Additional Funds to secure the payment of the principal of and interest
on the Series 2015B Bonds, and neither the full faith and credit of the University, the State, or any
political subdivision of the State, nor the taxing power of the State or any political subdivision of the
State, are pledged for the payment of the principal of or interest on the Series 2015B Bonds. The
University does not have taxing power. See “SECURITY FOR THE SERIES 2015B BONDS” and
“Appendix B – Summary of Certain Provisions of Bond Resolution” herein for additional information
regarding the security for the Series 2015B Bonds.
Use of Proceeds
Proceeds of the Series 2015B Bonds will be used (i) to defray a portion of the costs of additional student
housing facilities on the campus of the University, as well as dining, bookstore, retail, and other auxiliary
facilities and services on the University’s campus, known as the Douthit Hills Project; (ii) to pay capitalized
interest during the construction of the Douthit Hills Project; and (iii) to pay the cost of issuance of the Series
2015B Bonds. See “THE SERIES 2015B BONDS – The Douthit Hills Project” and “-Estimated Sources and
Use of Proceeds” herein for more information regarding the purposes of the Series 2015B Bonds.
vi
Authorization
The Series 2015B Bonds are being issued pursuant to and in full compliance with the Constitution and laws
of the State, including particularly Title 59, Chapter 147 of the Code of Laws of South Carolina 1976, as
amended (the “Enabling Act”), a resolution adopted by the Board of Trustees on December 1, 1997 (the
“Bond Resolution”), a resolution adopted by the Board of Trustees on April 12, 2013, as amended by a
resolution adopted by the Board of Trustees on July 17, 2015 (the “Series 2015B Resolution,” which together
with the Bond Resolution is referred to as the “Resolution”), and a resolution adopted by the State Budget and
Control Board on August 12, 2014, as amended by a resolution adopted by the State Fiscal Accountability
Authority, successor to the State Budget and Control Board, on August 25, 2015.
Tax Status of Interest
on the Series 2015B Bonds
In the opinion of Pope Flynn, LLC, Bond Counsel, assuming continuing compliance by Clemson
University with certain covenants and the requirements of the Internal Revenue Code of 1986, as amended
(the “Code”), interest on the Series 2015B Bonds is excludable from gross income of the owners thereof
for federal income tax purposes under existing statutes, regulations, and judicial decisions. In addition,
such interest is not a specific item of tax preference for purposes of the federal alternative minimum tax
imposed on corporations and other taxpayers, including individuals. Further, the Series 2015B Bonds and
the interest thereon will be exempt from all State, county, municipal, school district and other taxes or
assessments imposed within the State of South Carolina, direct or indirect, general or special, whether
imposed for the purpose of general revenue or otherwise, except estate or other transfer taxes, and certain
fees or franchise taxes. See “LEGAL MATTERS – Tax Exemption and Other Tax Matters” for a brief
description of certain provisions of the Code that may affect the tax treatment of the interest on the Series
2015B Bonds for certain owners thereof.
Continuing Disclosure
The University will agree, in a Continuing Disclosure Undertaking, to provide to the Municipal Securities
Rulemaking Board through its Electronic Municipal Market Access system, (i) annually certain financial
information and operating data, including the audited financial statements of the University, prepared in
accordance with accounting principles generally accepted in the United States of America, and (ii) notice of
the occurrence of certain enumerated events, as provided in Rule 15c2-12 promulgated by the U.S. Securities
and Exchange Commission. See “MISCELLANEOUS – Continuing Disclosure” and Appendix D herein.
General
This Official Statement speaks only as of its date, and the information contained herein is subject to
change. Copies of the Official Statement will be deposited with the MSRB, and accessible via EMMA.
Copies of the Official Statement, other relevant documents, and information regarding the documents are
available from Rick Petillo, Director, Debt and Capital Financing, Clemson University, G06 Sikes Hall,
Clemson, South Carolina 29634 (telephone: (864) 656-2421; email: [email protected]).
Professionals Involved in
the Offering
The Office of State Treasurer of the State of South Carolina is serving as Trustee with respect to the Series
2015B Bonds. U.S. Bank National Association, Columbia, South Carolina, is serving as Registrar and
Paying Agent. Pope Flynn, LLC, Columbia, South Carolina, is serving as Bond Counsel to the University.
Howell Linkous & Nettles, LLC, Charleston, South Carolina, is serving as Disclosure Counsel to the
University. First Southwest Company, Charlotte, North Carolina, is serving as Financial Advisor to the
University. Certain legal matters in connection with the execution and delivery by the University of the
Series 2015B Bonds will be passed upon for the University by Chip Hood, its General Counsel.
vii
[THIS PAGE INTENTIONALLY LEFT BLANK]
$191,000,000
CLEMSON UNIVERSITY, SOUTH CAROLINA
HIGHER EDUCATION REVENUE BONDS,
SERIES 2015B
All information included herein has been provided by the University except where attributed to other
sources. The summaries and references to all laws, rules, regulations, resolutions, agreements, reports, and other
documents referred to herein do not purport to be complete, comprehensive, or definitive, and each such reference
or summary is qualified in its entirety by reference to each such laws, rules, regulations, resolutions, agreements,
reports, and other documents.
THE SERIES 2015B BONDS
General
This Official Statement of Clemson University (the “University”), including the cover page and appendices
hereto, sets forth certain information concerning the University and its $191,000,000 Higher Education Revenue
Bonds, Series 2015B (the “Series 2015B Bonds”). All capitalized terms not defined herein shall have the meanings
ascribed to such terms in Appendix B – Summary of Certain Provisions of Bond Resolution.
The Series 2015B Bonds will be issued in fully-registered book-entry-only form in denominations of $5,000
or any integral multiple thereof, registered in the name of Cede & Co., as nominee for The Depository Trust Company,
New York, New York (“DTC”). See Appendix E herein for a more complete description of DTC and the book-entryonly system for the Series 2015B Bonds. The Series 2015B Bonds will bear interest from December 1, 2015, payable
semiannually on May 1 and November 1 of each year, commencing May 1, 2016 (each, a “Bond Payment Date”), at
the rates set forth on the inside cover page hereof, to the person in whose name the Series 2015B Bond is registered
(the “Registered Owner”) at the close of business on the 15th day of the month preceding the applicable Bond Payment
Date (the “Record Date”). The Series 2015B Bonds will mature on May 1 in each of the years and in the principal
amounts as set forth on the inside cover page hereof. The Registrar and Paying Agent for the Series 2015B Bonds is
U.S. Bank National Association, Columbia, South Carolina (the “Registrar” or, as the case may be, the “Paying
Agent”). The Trustee for the Holders of the Series 2015B Bonds is the Office of the State Treasurer of South Carolina
(the “State Treasurer”) in Columbia, South Carolina (the “Trustee”).
Use of Proceeds
Proceeds of the Series 2015B Bonds will be used (i) to defray a portion of the costs of planning, developing,
and equipping additional student housing facilities on the campus of the University, as well as dining, bookstore, retail,
and other auxiliary facilities and services on the University’s campus, known as the Douthit Hills Project (the “Douthit
Hills Project”); (ii) to pay capitalized interest during the construction of the Douthit Hills Project; and (iii) to pay the
cost of issuance of the Series 2015B Bonds. See “The Douthit Hills Project” and “Estimated Sources and Uses of
Funds” under this heading for more information regarding the purposes of the Series 2015B Bonds.
Authorization
The Series 2015B Bonds are being issued pursuant to and in full compliance with the Constitution and laws of
the State, including particularly Title 59, Chapter 147 of the Code of Laws of South Carolina 1976, as amended (the
“Enabling Act”), a bond resolution adopted by the Board of Trustees on December 1, 1997 (the “Bond Resolution”), a
series resolution adopted by the Board of Trustees on April 12, 2013, as amended by a series resolution adopted by the
Board of Trustees on July 17, 2015 (the “Series 2015B Resolution,” which together with the Bond Resolution is
referred to as the “Resolution”), and an approving resolution adopted by the State Budget and Control Board on August
12, 2014, as amended by an approving resolution adopted by the State Fiscal Accountability Authority, successor to the
State Budget and Control Board, on August 25, 2015. A summary of the Resolution is attached to this Official
Statement as “Appendix B – Summary of Certain Provisions of Bond Resolution.”
1
Redemption
Optional Redemption. The Series 2015B Bonds maturing on or prior to May 1, 2026 are not subject to
redemption prior to their stated maturities. The Series 2015B Bonds maturing after May 1, 2026, are subject to
redemption at par at the option of the University on or after May 1, 2026, in whole or in part at any time, and, if in part,
in those maturities designated by the University (but only in integral multiples of $5,000) upon 30 days written notice
at the principal amount thereof and the interest accrued on such principal amount to the date fixed for redemption.
Mandatory Sinking Fund Redemption. The Series 2015B Bonds maturing on May 1, 2046 (the “Term Bonds”) are
subject to mandatory sinking fund redemption commencing on the date shown in the following table and will be redeemed (to
the extent not previously redeemed as described above), at 100% of the principal amount thereof, plus interest accrued
thereon to the redemption date, on May 1 of each of the following years in the respective principal amounts specified in the
following table:
Series 2015B Bonds
Due May 1, 2046
Year
2042
2043
2044
Amount
$8,915,000
9,270,000
9,640,000
Year
2045
2046
Amount
$10,025,000
10,425,000*
* Maturity, not a redemption.
The amount of any such mandatory sinking fund redemption shall be reduced to the extent Series 2015B
Bonds of the applicable maturity have been purchased or redeemed by the University pursuant to any optional
redemption provisions, in such manner as the University shall direct, or absent such direction, on a pro rata basis.
Notice of Redemption. If any of the Series 2015B Bonds, or portions thereof, are called for redemption, the
Registrar shall give notice to DTC or its nominee or, if DTC or its nominee is no longer the Bondholder, the Holders of
any Series 2015B Bonds to be redeemed, in the name of the University, of the redemption of such Series 2015B Bonds,
or portions thereof, which notice shall specify the Series 2015B Bonds to be redeemed, including CUSIP number, Bond
Numbers, principal amount of each Series 2015B Bond to be redeemed (if less than all), publication date, redemption
date, redemption price, redemption agent’s name and address with contact person and phone number, Registrar’s name
and address, date of the Bonds, interest rate, maturity date, the place or places where amounts due will be payable, and
any other descriptive information deemed necessary by the Registrar. Notices must be sent in the event of a
Bondholder owing $1,000,000 of principal or more, to at least two national information services, and any Depository
by certified mail-return receipt requested or at the request of such Bondholder, an overnight courier service; notices
sent to any Depository must be sent so that such notice is received by such Depository at least two days prior to the
mailing of such notices to Bondholders, in addition, any Bondholder holding in excess of $1,000,000 principal amount
of Bonds may request the Registrar to send notices to any additional addressee specified. Such notice shall be given by
mailing a copy of the redemption notice by first class mail at least thirty (30) days but not more than sixty (60) days
prior to the date fixed for redemption to the Holder of each Series 2015B Bond at the address shown on the registration
books; provided, however, that failure to give such notice by mail, or any defect in the notice mailed to the Holder of
any Series 2015B Bond to be redeemed, shall not affect the validity of the proceedings for the redemption of any other
Series 2015B Bond.
Effect of Call for Redemption. Provided sufficient funds for their redemption are on deposit with the Paying
Agent, all Series 2015B Bonds so called for redemption shall cease to bear interest on the specified redemption date
and shall no longer be deemed to be Outstanding under the Resolution. If said money shall not be so available on the
redemption date, such Series 2015B Bonds or portions thereof shall continue to bear interest until paid at the same rate
as they would have borne had they not been called for redemption.
2
Book-Entry-Only System
The Series 2015B Bonds will be available to purchasers under the book-entry-only system maintained by
DTC, which will act as securities depository for the Series 2015B Bonds. Purchasers will not be entitled to receive
physical delivery of the Series 2015B Bonds. For so long as any purchaser is a beneficial owner of a Series 2015B
Bond, such purchaser must maintain an account with a broker or dealer who is, or acts through, a DTC participant in
order to receive payment of principal of and interest on such Series 2015B Bonds. See “Appendix E – DTC and
Book-Entry-Only System” herein for a more complete description of the book-entry-only system for the Series
2015B Bonds.
In the event the Series 2015B Bonds are no longer held in book-entry-only form, bond certificates
registered in the name of DTC or its nominee will be cancelled and the University will execute and deliver Series
2015B Bonds to the Beneficial Owners as shown on the records of the DTC Participants. See “Appendix B –
Summary of Certain Provisions of Bond Resolution” herein for a description of the payment, registration, transfer,
and exchange provisions for the Series 2015B Bonds if the book-entry-only system is discontinued.
The Douthit Hills Project
The Douthit Hills Project consists of a $212 million residential village with approximately 1,600 beds
and various student amenities to be constructed over 80 acres adjacent to the center of campus. This project
will provide significant additional housing capacity for upperclassmen as well as provide residence space to
transfer-student programming along with any staff and residential advisors necessary for such initiatives.
The project will be a short walk to classes and campus activities and amenities may include choice of
studio, two- and four-bedroom apartments, courtyards, landscaped walkways, a swimming pool, dining
facilities, bookstore, fitness center, and other features competitive with off-campus options.
All eight planned buildings are expected to be LEED-Silver Certified with a projected occupancy of
August 2018. A significant area to the east and north of the residence halls will provide parking and green
space to maintain a protective buffer between town and campus.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
3
Estimated Sources and Uses of Proceeds
The following table sets forth the estimated sources and uses of proceeds of the Series 2015B Bonds.
(1)
Sources of Proceeds
Series 2015B Bond Proceeds
Par Amount
Accrued Interest
Net Premium
Total Sources
$ 191,000,000
361,236
14,743,441
$ 206,104,677
Uses of Proceeds
Deposit to Construction Fund
Accrued Interest
Deposit to Capitalized Interest Fund
Costs of Issuance(1)
Total Uses
$ 188,200,000
361,236
16,357,390
1,186,051
$ 206,104,677
Includes Underwriter’s discount, legal, accounting, consulting, printing and other costs of issuing the Series 2015B Bonds.
SECURITY FOR THE SERIES 2015B BONDS
The Series 2015B Bonds issued under the Resolution are limited obligations of the University and are
payable solely from, and secured by a pledge of, the Net Revenues and Additional Funds on a parity with the pledge
of Net Revenues and Additional Funds securing the University’s Bonds as described in the following table and any
other Bonds issued hereafter pursuant to the Bond Resolution.
The table below sets forth the currently outstanding Bonds (the “Outstanding Bonds”) of the University
under the Bond Resolution.
Outstanding Bonds
Series
2005
2012
2015A
Dated Date
December 1, 2005
February 1, 2012
May 1, 2015
Original
Principal Amount
$ 22,130,000
21,200,000
90,285,000
Outstanding
Principal Amount*
$ 2,755,000
17,820,000
90,285,000
___________________
*As of December 1, 2015.
The Series 2005 Bonds, the Series 2012 Bonds, and Series 2015A Bonds, together with the Series 2015B
Bonds and any other bonds issued pursuant to the Bond Resolution on a parity with the aforementioned bonds, are
hereinafter collectively referred to as the “Bonds.”
THE SERIES 2015B BONDS ARE NOT GENERAL OBLIGATIONS OF THE STATE OF SOUTH
CAROLINA (THE “STATE”) AND DO NOT IN ANY EVENT CONSTITUTE AN INDEBTEDNESS OF THE
STATE WITHIN THE MEANING OF ANY PROVISION, LIMITATION, OR RESTRICTION OF THE
CONSTITUTION OR LAWS OF THE STATE (OTHER THAN ARTICLE X, SECTION 13(9) OF THE
SOUTH CAROLINA CONSTITUTION AUTHORIZING OBLIGATIONS PAYABLE FROM A REVENUE
PRODUCING SOURCE NOT INVOLVING ANY TAX), NOR A CHARGE, LIEN, OR ENCUMBRANCE,
LEGAL OR EQUITABLE, UPON ANY PROPERTY OF THE UNIVERSITY OR THE STATE OR UPON
ANY INCOME, RECEIPTS OR REVENUES OF THE UNIVERSITY OR THE STATE, SAVE AND
EXCEPT THE PLEDGE OF THE NET REVENUES AND ADDITIONAL FUNDS TO SECURE THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE SERIES 2015B BONDS, AND NEITHER
THE FULL FAITH AND CREDIT OF THE UNIVERSITY, THE STATE, OR ANY POLITICAL
4
SUBDIVISION OF THE STATE, NOR THE TAXING POWER OF THE STATE OR ANY POLITICAL
SUBDIVISION OF THE STATE, ARE PLEDGED FOR THE PAYMENT OF THE PRINCIPAL OF OR
INTEREST ON THE SERIES 2015B BONDS. THE UNIVERSITY DOES NOT HAVE TAXING POWER.
Pledge of Net Revenues and Additional Funds
The Series 2015B Bonds are payable solely from, and secured by a pledge of, the Net Revenues from the
operation of the Facilities and Additional Funds (as such terms are defined hereinbelow). See “Appendix B—
Summary of Certain Provisions of Bond Resolution.” Such pledge shall be on a parity in all respects with that given
to secure all Outstanding Bonds issued by the University from time to time pursuant to the Bond Resolution.
Net Revenues. The term “Net Revenue” means “Gross Revenue” less “Operation and Maintenance
Expenses,” but there shall be excluded from the calculation made to determine Net Revenues: (i) gains or losses on
the sale or other disposition of investments of fixed or capital assets, which do not result from the ordinary course of
business; (ii) investment income restricted to a purpose inconsistent with the payment of operating expenses or debt
service including (whether or not so restricted) interest earned on any construction fund or construction account
created with the proceeds of borrowing by the University; and (iii) any amounts received by way of government
grants or appropriations pertaining to the Facilities to the extent that such grants are not permitted by law or their
terms to be pledged to secure the Bonds.
The term “Gross Revenues” means: (i) all receipts and revenues, including fines and commissions, derived
from the operation of the Facilities (including any rents or other fees received in connection with the Facilities not
operated directly by the University), (ii) all proceeds from the sale or other disposition of any property owned
directly or beneficially by the University in connection with the operation of the Facilities, and (iii) all interest and
other income received directly or indirectly from the investment of any moneys or accounts relating to the Facilities;
excluding, however, investment income restricted to a purpose inconsistent with the payment of operating expenses
or debt service and specifically excluding (if so provided by any Series Resolution) interest earned on any
construction fund or construction account created with the proceeds of borrowing by the University.
The term “Operation and Maintenance Expenses” means, for the period in question, all expenses incurred
in connection with the administration and operation of the Facilities, including, without limiting the generality of the
foregoing: salaries, wages and employer contributions, costs of materials, supplies and insurance, costs of water,
sewer and power, and such expenses as may be reasonably necessary to preserve the Facilities in good repair and
working order, and to pay the fees and charges of the Trustee and the custodian or trustee of any fund, the Paying
Agent, the Registrar, the costs of audits required hereunder, the costs of computation and payment of any arbitrage
rebate, and the premiums for all insurance and fidelity bonds required by the Bond Resolution.
Operation and Maintenance Expenses shall not include: (i) depreciation allowances; (ii) amounts paid as
interest on bonds; (iii) operational and maintenance expenses paid from the (i) receipts of government grants or (ii)
appropriations paid to the University by the General Assembly; (iv) amounts expended for extraordinary repairs to
the Facilities; and (v) the amortization of financing expenses, underwriting discounts, call premiums, gains or losses
on the extinguishment of debt due to the refinancing of the same, and other related or incidental nonrecurring
expenses resulting from the issuance or refinancing of Bonds.
Additional Funds. The Board of Trustees has designated and approved the gross receipts from the
“University Fee” as additional funds which are pledged to secure the Bonds, including the Series 2015B Bonds
(collectively, the “Additional Funds”). The “University Fee” is defined to mean the total academic fee imposed by
the Board of Trustees and charged all persons in attendance at any regular or summer session of the University who
are enrolled in any course or class for which credit is given toward any degree offered by the University but not to
include special student fees, tuition and matriculation fees.
5
Rate Covenants
The University covenants and agrees in the Bond Resolution to maintain and collect rates and charges for
use of the Facilities which, together with the receipts of Additional Funds, shall at all times be sufficient:
(1)
to provide for the payment of expenses for the administration, operation, and
maintenance of the Facilities as may be necessary to preserve the same in good repair and condition;
(2)
to maintain all Debt Service Funds and thus provide for the punctual payment of the
principal of and interest on the Bonds;
(3)
to maintain any and all Debt Service Reserve Funds established at the level required by
the Resolution (see “Appendix B—Summary of Certain Provisions of Bond Resolution”);
(4)
to provide for the payment of the principal of and interest on any Junior Lien Bonds that
may from time to time hereafter be Outstanding;
(5)
to provide a reserve for contingencies and for improvements, renovations and expansions
of the Facilities other than those necessary to maintain the same in good repair and condition;
(6)
to pay all amounts owing under a reimbursement agreement with any provider of a debt
service reserve insurance policy, insurance policy, line of credit, letter of credit or similar instrument
established with respect to a Reserve Requirement for any particular series of Bonds; and
(7)
to discharge all obligations imposed by the Enabling Act and by the Bond Resolution.
The Bond Resolution further provides that the University will at all times prescribe and maintain and
thereafter collect rates and charges for the use and occupancy of the Facilities which are reasonably expected to
yield annual Net Revenues in the current Fiscal Year which equal at least one hundred percent (100%) of the
Combined Annual Principal and Interest Requirements for all Bonds Outstanding in such Fiscal Year. Promptly
upon any material change in the circumstances which were contemplated at the time such rates and charges were
most recently reviewed, but not less frequently than once in each Fiscal Year, the University shall review the rates
and charges for such use and shall promptly revise such rates and charges as necessary to comply with the foregoing
requirement.
The University further covenants in the Bond Resolution that for each Fiscal Year, the Board of Trustees
shall adopt an Annual Budget, including amended rate schedules for such Fiscal Year which shall set forth in
reasonable detail the estimated revenues and operating expenses of the Facilities and which shall include
appropriations, if any, for the estimated operating expenses of the Facilities for such period, and also the amount to
be deposited during such Fiscal Year in the Improvement Fund. See “—Flow of Funds—Improvement Fund”
herein. The Bond Resolution further provides that the Board of Trustees may at any time adopt an amended Annual
Budget for the remainder of the then current Fiscal Year.
Additional Covenants
The University further covenants and agrees:
(a)
That neither the Facilities, nor any part thereof, nor any of the income or revenues
derived from the Facilities, have been or will be hypothecated, mortgaged, otherwise pledged or
encumbered, save and except as herein disclosed and provided for;
(b)
That so long as there are any Bonds Outstanding and unpaid, it will perform all duties
with reference to the Facilities required by the Constitution and statutes of the State, including without
limitation the Enabling Act, and the University hereby irrevocably covenants, binds and obligates itself not
to pledge, mortgage or otherwise encumber the Facilities or any part thereof, or any revenues therefrom,
except in the manner herein authorized, and it will not sell, lease or dispose of any portion of the Facilities,
6
necessary or useful (as determined by the University) in the operation of the Facilities, except as herein
provided until all Bonds shall be paid in full, or unless and until provision shall have been made for the
payment of all Bonds and the interest thereon in full;
(c)
That it will permit, so long as there are any Bonds Outstanding, any Bondholder to
inspect the Facilities and all records and accounts thereof under reasonable terms and conditions and after
reasonable notice has been given;
(d)
That it will not make any use, and it shall not direct the Trustee and each fiduciary to
make any use of the proceeds of any Series of Bonds which Bonds were intended upon the issuance thereof
to be exempt from federal income taxation, which, if such use had been reasonably expected on the date of
the issuance of the Bonds of such Series would have caused such Series of Bonds or any other Bonds to be
“arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended
(the “Code”) and will observe and not violate the requirements of Section 148 of the Code;
(e)
That, as to any Series of Bonds which were intended at the time of their issuance to be
exempt from federal income taxation, it will take all actions required of it under the Code that are necessary
to preserve the tax-exempt status of such Bonds, including without limitation, actions necessary to comply
with all information reporting requirements and any obligation to rebate arbitrage earnings on the proceeds
of such bonds to the United States Government; and
(f)
That it will make all payments or deposits required under the Bond Resolution in a timely
manner.
Flow of Funds
Prior to the occurrence of an Event of Default (as described in “Appendix B”), the University shall hold
and control all Gross Revenues and shall apply therefrom such amounts as shall be required to satisfy its obligations
under the Bond Resolution. The University shall pay from the Facilities Operation and Maintenance Fund all
ongoing contractual fees related to the Bonds, including but not limited to arbitrage rebate and Trustee and
Registrar/Paying Agent fees. For the Series 2015B Bonds, the Trustee will be the State Treasurer.
Facilities Operation and Maintenance Fund. Gross Revenues required to meet the University’s obligations
under the Resolution shall be deposited into the Facilities Operation and Maintenance Fund (as described in
“Appendix B”), which shall be held and controlled by the University unless an Event of Default has occurred (as
described in the immediately following paragraph). Payments for Operation and Maintenance Expenses for the
Facilities shall be made from this fund. Moneys in the Facilities Operation and Maintenance Fund will be invested
and reinvested in Authorized Investments (as defined in “Appendix B”) having suitable maturities consistent with
the need for application of such moneys. Any earnings on investment of moneys in the Facilities Operation and
Maintenance Fund shall accrue to the benefit of such fund.
The Board of Trustees has covenanted in the Resolution that if an Event of Default shall have occurred and
be continuing, then upon demand of the Trustee, all Gross Revenues shall be paid over to the Trustee for deposit to
the credit of the Facilities Operation and Maintenance Fund until such Event of Default has been cured or waived by
the Trustee, and shall be applied as provided in the Resolution following such an Event of Default.
Debt Service Fund. The Debt Service Fund for a Series of Bonds is intended to provide for the payment of
the principal of, premium, if any, and interest on that Series of Bonds as the same respectively fall due. The
Resolution requires that 1/6 of the aggregate amount of interest to become due on the next ensuing Bond Payment
Date for a Series of Bonds shall be deposited monthly into the Debt Service Fund for such Series of Bonds;
provided, however, that if provision has been made for the payment of all or part of the next installment of interest
to become due on any Series of Bonds, pursuant to any other provision of the Resolution, or any series or
supplemental resolution, or by reason of investment earnings, then, in such event, the deposits required may be
omitted, or reduced accordingly.
7
The Resolution further requires that 1/12 of the aggregate amount of principal to become due on the next
Bond Payment Date for a Series of Bonds shall be deposited monthly into the Debt Service Fund for such Series of
Bonds; provided, however, that if provision has been made for the payment of all or part of either of the abovereferenced installments of principal to become due on a particular Series of Bonds, pursuant to any other provision
of the Resolution or any series or supplemental resolution, or by reason of investment earnings, then, in such event,
the deposits required by the preceding sentence of this paragraph may be omitted, or reduced accordingly.
Debt Service Reserve Funds. The Bond Resolution provides for the establishment of separate Debt Service
Reserve Funds with respect to different Series of Bonds to be used for the timely payment of the principal of and
interest on such Series of Bonds and to provide for the redemption of such Series of Bonds prior to their stated
maturity.
For a description of the Debt Service Reserve Fund, see Appendix B – Summary of Certain Provisions of
the Resolution. The 2015 Supplemental Resolution has provided for the establishment of no Debt Service Reserve
Fund in connection with respect to the Series 2015B Bonds. There are no moneys or surety bonds currently on
deposit in the Debt Service Reserve Fund that are expected to be available to pay debt service on the Series 2015B
Bonds in the event that moneys on deposit in the Debt Service Fund are insufficient for that purpose.
Improvement Fund. The Improvement Fund has been established under the Resolution to provide a
reasonable reserve for contingencies and for improvements, expenses and renovations of the Facilities. As part of
the budgeting process, the Board of Trustees shall set forth all sums intended for the Improvement Fund. Moneys in
the Improvement Fund also may be used to prevent defaults of Bonds and Junior Lien Bonds and for the optional
redemption of Bonds.
Construction Fund. For each Series of Bonds for which the proceeds are to be used for construction,
improvements, renovation or repair of the Facilities, there shall be established a separate Construction Fund.
Additional Bonds
The Bond Resolution provides that the University may, at any time, issue additional Bonds which shall be
payable on a parity with the Bonds upon compliance with certain provisions of Bond Resolution. For non-refunding
bonds, Net Revenues and Additional Funds during the most recent Fiscal Year for which audited financial
statements of the University are completed shall be certified by the Chief Financial Officer on the basis of such
audited financial statements, must be not less than one hundred twenty percent (120%) of the maximum Combined
Annual Principal and Interest Requirement on all Bonds Outstanding immediately prior to the issuance of such
proposed Series of Bonds and on such proposed Series of Bonds. Net Revenues and Additional Funds may be
adjusted to reflect: (1) any rate or fee increases currently adopted and to be in effect prior to or coincident with the
issuance of such proposed Series of Bonds and determined pro forma as though such rate increases had been in
continuous effect during such recent Fiscal Year; (2) in the event proceeds of such proposed Series of Bonds will be
used to pay interest on such proposed Series, one hundred percent (100%) of the interest that will accrue on such
Series of Bonds during the first twelve (12) full months following the date of delivery of the proposed Series and
that will be paid from such proceeds, provided, however, that any such interest accruing in such twelve (12) month
period that is to be paid on a date within the Fiscal Year of maximum Combined Annual Principal and Interest
Requirements shall not be so added into such Net Revenues and Additional Funds; and (3) any amount allowed by
(2) above as an adjustment with respect to a previously-issued Series of Bonds if the proposed Series of Bonds is
being issued prior to the end of the Fiscal Year in which capitalized interest on the previously issued Series of Bonds
is exhausted. See “Appendix B - Summary of Certain Provisions of Bond Resolution.”
Junior Lien Bonds
The Bond Resolution provides that the University may, at any time, and without limitations and free of all
conditions, issue Junior Lien Bonds in such amount as it may from time to time determine, payable from the Net
Revenues and Additional Funds; provided that the pledge of and any lien on the Net Revenues and Additional Funds
granted for the protection of said Junior Lien Bonds, shall at all times be subordinate and inferior in all respects to
the pledges of and any liens on the Net Revenues and Additional Funds made or authorized for the Bonds and
provided, further, that the maturity of Junior Lien Bonds may not be accelerated and paid in full unless all of the
8
Bonds shall have been paid or provision therefor has been made in accordance with the Bond Resolution. See
“Appendix B - Summary of Certain Provisions of Bond Resolution” for a more detailed summary of the provisions
of the Bond Resolution pertaining to Junior Lien Bonds. The University has no Junior Lien Bonds outstanding, and
no current plans to issue Junior Lien Bonds in the future.
Right to Sell and Dispose of Facilities
The Board of Trustees shall have the right to dispose of any obsolete or worn out equipment, furniture and
furnishings which may be at any time a part of the Facilities, but all moneys realized therefrom shall be treated as a
part of the Gross Revenues. Prior to abandoning any Facilities, the Chief Financial Officer must recommend in
writing that such action will not adversely affect the ability of the University to discharge its obligations under the
Resolution. The Board of Trustees then must adopt a resolution providing for the abandonment of such portion of
the Facilities which it finds to be no longer serviceable. In addition, the University may sell or otherwise dispose of
any portion of the Facilities, provided that: (1) the Board of Trustees is provided with an appraisal from an
independent certified appraiser stating that in its opinion the purchase price or other consideration to be received
represents the fair market value of the portion of the Facilities sought to be sold or otherwise disposed of; (2) the
Board of Trustees adopts a resolution to which shall have been appended a recommendation of the Chief Financial
Officer as to the same and a copy of said appraisal, approving the sale or other disposition and prescribing that the
proceeds of the sale or other disposition shall be applied either (a) to the Improvement Fund, or (b) to the partial
payment and redemption of the Bonds in the manner provided for redemptions in the Bond Resolution; (3) the
Board of Trustees shall have obtained the recommendation of the Chief Financial Officer that such action will not
adversely affect the ability of the University to discharge its obligations under the Bond Resolution; and (4) the
University shall have obtained any approvals required by State law.
THE FACILITIES
Facilities
The Bond Resolution defines “Facilities” to mean all of the following facilities owned by the University
and operated directly by the University or on its behalf to provide for the students, faculty or staff at the University,
hereby designated by the Board of Trustees: dormitories, apartment buildings, dwelling houses, and inns (excluding
the residence of the President of the University and dormitories or other student dwelling quarters leased, but not
owned or yet owned, by the University pursuant to a lease or any lease/purchase arrangement); bookstores and other
stores operated by the University, including facilities for the sale of sundry items; dining halls and other food service
facilities, including canteen and vending facilities; and parking and vehicle registration facilities (including all
parking lots and buildings) and all furniture, furnishings and equipment therein, which are now owned by the
University, or which may be acquired by the University for any of these purposes; and shall include Additional
Facilities (as defined herein). Where the context requires, the term “Facilities” shall include services provided in or
by the Facilities but shall specifically exclude athletic department facilities which: (1) primarily serve varsity athletic
teams of the University; and (2) are athletic facilities as defined in Section 59-119-920 of the Code of Laws of South
Carolina 1976, as amended.
Additional Facilities
The Board of Trustees shall have the right from time to time to add other activities and facilities of the
University (which as of the date of adoption of the Bond Resolution were not included in the definition of the term
“Facilities”) to the definition of Facilities thereunder, provided that: (i) the Board of Trustees shall have determined
that such activities and Facilities are of a similar nature as are the Facilities expressly referred to in the Enabling
Act; (ii) the Board of Trustees shall adopt an appropriate amendatory resolution to the Bond Resolution; and (iii) the
University and the Board of Trustees shall have received an opinion of Bond Counsel to the effect that such action
to be taken is authorized under the Bond Resolution and the laws of the State of South Carolina and will not
adversely affect the excludability of interest on the Series 2015B Bonds from federal income taxation.
9
Description of the Existing Facilities
The Facilities are generally comprised of four different types of facilities: (a) student, faculty and staff housing
facilities (excluding the President’s house and any leased student housing facilities) owned and operated directly by the
University; (b) bookstores and other stores owned or operated by the University; (c) dining halls and other food service
facilities (including canteen and vending facilities); and (d) parking and vehicle registration facilities (including all
parking lots and buildings). A brief description of these facilities follows:
Student and Interim Faculty Housing Facilities. The University currently provides 6,275 single student
spaces, and three temporary spaces for interim faculty. The housing fees charged students and faculty members of the
University for use of these facilities vary according to the size and quality of the housing unit. Housing fees are
charged at the beginning of each semester, except for interim faculty housing, which is charged on a monthly basis.
Rate increases are discretionary with the Board of Trustees, based on the recommendation of staff. In July 2015, the
Board of Trustees approved an overall 3% increase for room and board for Fiscal Year 2015-16.
The University’s Housing Policy requires all first-year students entering the University directly from high
school or preparatory school, not residing with parents, guardians or close relatives, to live in University-owned
housing, provided that such space is available. At the beginning of the fall semester for the current academic year, 98%
of first-year students required to live in University housing were placed in University housing.
The following table sets forth the aggregate number of housing facilities for each of the past five academic
years, including the current fiscal year, as well as the aggregate number of units and the occupancy rates.
HOUSING OCCUPANCY RATES
Fall
Semester(1)
Housing
Facilities
Units in Use
Housing Facilities
Units Available(2)
Percent
Occupancy(3)
2015
2014
2013
2012
2011
6,122
6,140
6,113
6,162
5,822
6,236
6,275
6,248
6,303
6,080
98.2%
97.8%
97.8%
97.8%
95.8%
(1) At beginning of academic year.
(2) Capacity figures change each year depending upon the number of single student spaces offered.
(3) In the spring semester, the occupancy rate decreases an average of 3-5%. In addition to the fall and spring semesters, there
are three summer sessions. Average occupancy of the residence halls during the summer sessions is 22%; 68% of the total
revenues derived from the rental of the residence hall rooms during the summer is obtained from special groups who reside
on campus while using the facilities of the University.
Bookstores and Other Stores Owned and Operated by the University. The University Bookstore is a selfsustained full-service campus bookstore dedicated to providing desired goods and professional services to students,
faculty, staff, and visitors. In addition to textbooks and classroom supplies, the University Bookstore offers a variety of
goods and services including general books, graduation supplies, class rings, greeting cards, periodicals, Clemson
memorabilia and apparel, and other sundry goods. Since May 2, 1995, the Bookstore has been operated under
contractual agreements with Barnes & Noble College Bookstores, Inc. The current University bookstore facility
opened in the Hendrix Center on March 27, 2000. The University and Barnes & Noble College Bookstores, Inc.
signed a fifteen-year contract which became effective May 3, 2005. There was a major renovation to the interior of
the bookstore in the spring of 2006. The University bookstore will be relocated to the new student center when the
Douthit Hills Project is complete. The current University bookstore location will be repurposed by Student Affairs.
Dining and Food Service Facilities. University Housing & Dining is responsible for the University’s dining
services. The meal plan operations are self-supporting, and are primarily conducted at Harcombe Dining Hall,
Schilletter Dining Hall, and the Clemson House Dining Room. There are approximately 125,387 square feet associated
with the dining halls and 1,552 seats available.
10
The dining and serving areas of Schilletter Dining Hall received a major renovation during the summers of
2000, 2002, 2006, and 2013. Major renovations of Harcombe Dining Hall were completed during the summers of
2003 and 2012. Harcombe Dining Hall, currently in the Edgar Brown Student Union, will be relocated to the Core
Campus site in the summer of 2016. A phased transition will be implemented so that summer students, camps and
conferences will still be served in Harcombe during the transition. Starbucks will be relocated to the Core Campus
site from the Union as well. A small bakery is planned to occupy the previous Starbucks space. In addition to the
new dining hall, Core Campus dining will include a restaurant (Raising Cane’s), three retail locations (Starbucks,
Twisted Taco, and Which Wich) and a P.O.D (Provisions on Demand) convenience store.
All University dining services operations are managed by ARAMARK, Inc. and include, in addition to regular
service at the three locations just mentioned, two restaurants, 21 retail locations, and catering services for Universityrelated functions and other special events. The University and ARAMARK signed a fifteen-year exclusive dining
services contract effective July 1, 2005
Three mandatory meal plans are available to choose from for new, incoming students. Continuing students
have six meal plans to choose from, which include the three mandatory plans.
The following table provides participation rates for meal plans related to total undergraduate population.
MEAL PLAN PARTICIPATION
Fall
(1)
Semester (1)
Total
Meal Plan
Participation
Total
Undergraduate
Enrollment
Percent
Participation
2015
2014
2013
2012
2011
8,244
7,757
7,243
7,140
6,668
18,016
17,260
16,931
16,562
15,836
46%
45%
43%
43%
42%
At beginning of academic year.
Vending. Vending provides conveniently located beverage and snack machines on the University campus. In
2012, the University signed a ten-year exclusive pouring rights contract with Coca-Cola Bottling Company
Consolidated for beverages. ARAMARK, INC provides campus snack-vending services. Vending kiosks, providing
hot and cold food options, are now set up at various campus locations within existing facilities. ATM revenue contracts
are included in the Vending area which is also overseen by University Housing and Dining. Five banking institutions
provide ATM service with 7 locations on campus.
Parking Facilities. Parking and Transportation Services is responsible for all aspects of parking and
transportation management that pertain to the campus parking and transportation systems to include: the collection and
processing of all permit fees, administration of the permit process, customer service, the campus shuttle system, meter
collection, enforcement of all parking fees and regulations that govern the system, maintenance, construction and
strategic planning.
The University also operates parking facilities for use both by students living on campus and students, faculty
and staff commuting from off-campus. The University currently provides 12,457 parking spaces for on-campus use.
Faculty, staff and students are required to purchase an annual parking permit to use campus parking facilities. Student
permits are valid from August 16 through August 15 of the subsequent year, and faculty and staff permits are valid
from July 1 to June 30 of the subsequent year. The current annual parking permit purchase price is $148 for students;
faculty and staff permits range from $24 to $200. The purchase price for annual permits is reduced monthly. The
Douthit Hills Project is expected to add approximately 253 surface parking spaces and replace 658 spaces displaced
by construction to support the Douthit Hills student community.
11
In addition to regular campus shuttle routes, Clemson’s Parking and Transportation Services offers transit
services to all Clemson University students, faculty, staff and visitors via Clemson Area Transit (CAT), Greenville
Transit Authority (Greenlink) and Tiger Transit. The University supports public transportation provided by Clemson
Area Transit and Greenville Transit Authority to:
•
Maintain and improve the convenience of access between inner campus destinations and perimeter parking
facilities.
•
Reduce future parking construction and maintenance costs by reducing demand for on-campus parking.
•
Maintain and improve the convenience of access to off-campus destinations for Clemson University students,
faculty and staff who do not have private transportation.
•
Provide transportation to/from CU-ICAR and Greenville connections.
Clemson University graduate and undergraduate students enrolled in 6 or more credit hours are assessed a $33
per semester/$66 annual transit fee that is used with other Parking and Transportation Services revenues to fund
services provided by Clemson Area Transit , Greenville Transit Authority, Tiger Transit and Parking and
Transportation Services.
Tiger Transit is operated under the direction of the Division of Student Affairs by the Auxiliary Student Patrol
(ASP), a student organization affiliated with the Clemson University Police Department (CUPD). For safety and
convenience, Tiger Transit drivers are pleased to provide door-to-door service to and from any location on Clemson’s
campus. Tiger Transit is funded by Parking and Transportation Services.
The table below shows the number of parking spaces available and the number of parking permits issued for
the past five years.
PARKING FACILITIES USE
Parking Year
(August 16 –
August 15)
2014-15
2013-14
2012-13
2011-12
2010-11
Parking Spaces
Available
12,457
12,303
12,206
12,139
11,939
Annual Parking
Permits Issued to
Students(1)
15,587
15,847
15,547
13,139
15,379
Annual Parking
Permits Issued to
Faculty and Staff(1)
4,809
4,871
4,794
4,945
4,983
_____________
(1) Includes annual permits issued during fall, spring and summer sessions.
Core Campus Project: Construction on the Core Campus project is underway with completion scheduled
for fall 2016. The Core Campus Project entails the construction of an approximately 260,000 square foot mixed-use
facility, which will include student housing, retail and residential dining, and a new home for the Calhoun Honors
College. Approximately 400 beds are expected to be used by honors students living on-site in suite-style rooms, while
approximately 300 additional student beds on the south-end of the property will house first and second year students in
traditional rooms with access to shared, private bathrooms. Dining facilities will encompass 78,000 square feet of space
between a 900 seat dining hall and a 300 seat dining center. The dining center will be comprised of multiple retail and
residential dining facilities as well as a convenience store. Outdoor dining space will also be offered.
The Core Campus Project replaces a 61-year-old dining hall, Harcombe Dining Hall, which is currently the
University’s main dining facility, and partially replaces student housing at Johnstone Hall, originally constructed in 1955.
12
SUMMARY OF NET REVENUES
Under the Bond Resolution, Net Revenues for any period is comprised of Gross Revenues less Operation
and Maintenance Expense for the Facilities. On an independent basis, the component facilities comprising the
Facilities have generated Net Revenues for the past five Fiscal Years as shown below:
Fiscal Year
2012-13
2013-14
2014-15
$ 29,990,088
16,061,277
$ 13,928,811
$ 30,690,793
16,419,447
$ 14,271,346
$ 31,688,407
17,895,391
$ 13,793,016
$ 1,280,095
149,214
$ 1,130,881
$ 1,381,146
132,835
$ 1,248,311
$ 1,320,446
135,614
$ 1,184,832
$ 1,209,615
119,527
$ 1,090,088
$ 16,868,671
14,259,143
$ 2,609,528
$ 17,040,027
14,044,431
$ 2,995,596
$ 19,905,068
15,727,914
$ 4,177,154
$ 20,166,761
16,353,984
$ 3,812,777
$ 21,017,871
17,051,295
$ 3,966,576
Parking Facilities
Revenues
Expenditures
Net Revenues
$ 4,092,505
2,973,472
$ 1,119,033
$ 4,440,702
2,834,474
$ 1,606,228
$ 4,175,153
3,310,840
$ 864,313
$ 4,571,105
3,400,893
$ 1,170,212
$ 4,737,054
3,600,599
$ 1,136,455
TOTAL NET REVENUES
$ 17,306,721
$ 18,830,813
$ 20,218,589
$ 20,439,167
$ 19,986,135
2010-11
2011-12
FACILITIES
Housing
Revenues
Expenditures
Net Revenues
$ 27,107,834
14,641,094
$ 12,466,740
$ 27,705,513
14,607,706
$ 13,098,107
Bookstores and Other Stores
Revenues
Expenditures
Net Revenues
$ 1,294,258
182,838
$ 1,111,420
Dining Facilities(1)
Revenues
Expenditures
Net Revenues
_______________________
(1)
Includes Vending Services.
ADDITIONAL FUNDS
General
In addition to the Net Revenues, the University has pledged Additional Funds for the payment of Bonds.
Additional Funds are defined in the Bond Resolution to include the gross receipts from the “University Fee,” which
is defined as the total academic fee charged all persons in attendance at any regular or summer session and enrolled
for credit, excluding Special Student Fees, Tuition and Matriculation Fees (each as defined in the Bond Resolution).
See also “University Fee Receipts” under this heading.
Four categories of academic fees are paid by enrolled students at the commencement of each semester: a
Tuition Fee, a Matriculation Fee and the University Fee, as well as Special Student Fees (such fees collectively
described herein as the “Academic Fee”). Both the Tuition Fees and the Matriculation Fees are pledged to the
payment of the State Institution Bonds issued by the State on behalf of the University (see “DEBT STRUCTURE
OF THE UNIVERSITY – Outstanding Debt” herein) and are not pledged to the payment of the Bonds.
The University Fee is a fee charged for the current operations of the University and includes an information
technology fee, a student activity fee and a software license fee. The Chief Financial Officer of the University
recommends to the Board of Trustees the amount of the University Fee to be imposed for each academic year.
Subsequently, the Board of Trustees at its annual budget meeting, which occurs at the commencement of each Fiscal
Year, sets the amount of the University Fee to be charged for the upcoming academic year.
13
University Fee Receipts
University Fee receipts for the past five Fiscal Years are shown below. The University Fee constitutes the
Additional Funds pledged to secure the Bonds pursuant to the Bond Resolution.
Amount
$ 310,275,721
293,645,218
287,469,512
269,898,663
255,727,841
Fiscal Year
2014-15
2013-14
2012-13
2011-12
2010-11
OUTSTANDING REVENUE BOND DEBT
Debt Service Coverage
The following table sets forth historical debt service coverage during the immediately preceding five fiscal
years with respect to the Bonds Outstanding during the applicable year. The table shows two separate coverage
calculations: first, based solely on Net Revenues, and second, based on combined Net Revenues and Additional
Funds, all of which are pledged as security for the Series 2015B Bonds.
Fiscal Year
2012-2013
2013-2014
2014-2015
$ 50,466,337
31,635,525
$ 18,830,812
$ 55,451,455
35,232,866
$ 20,218,589
$ 56,749,105
36,309,938
$ 20,439,167
$ 58,652,947
38,666,812
$ 19,986,135
$ 6,685,000
$ 7,287,849
$ 6,406,650
$ 6,456,000
$ 6,900,325
2.59x
2.60X
3.16x
3.17x
2.90x
Total Additional Funds(2)
$255,727,841
$269,898,663
$287,469,512
$293,645,218
$310,275,721
Total Net Revenues and
Additional Funds
$273,034,562
$288,729,475
$307,688,101
$314,084,385
$330,261,856
40.84x
39.60x
48.03x
48.65x
47.86x
2010-2011
Facilities
Revenues
Expenditures
Total Net Revenue(1)
$ 49,363,268
32,056,547
$ 17,306,721
Debt Service
Net Revenues Coverage Ratio
Total Net Revenues and
Additional Funds Coverage
Ratio
_____________________
(1)
(2)
2011-2012
For the Fiscal Years ended indicated, Net Revenues have been calculated by aggregating Net Revenues for each of the component facilities
(see “SUMMARY OF NET REVENUES” herein).
See “ADDITIONAL FUNDS.” Although Additional Funds (i.e., the University Fee) are used principally to support operations of the
University, such funds are pledged as security for the Bonds.
14
Debt Service Requirements
The following table sets forth the principal and interest requirements on the Series 2015B Bonds, together
with the debt service requirements on the Outstanding Bonds.
Fiscal
Year
June 30
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
Totals
Debt Service
Outstanding
Bonds
$ 10,658,563
10,659,563
12,282,563
6,286,363
6,282,463
5,548,250
5,544,500
5,546,250
5,548,000
5,544,500
5,545,750
5,546,250
5,545,750
5,544,000
5,545,750
5,545,500
5,548,000
5,544,800
5,546,600
5,543,000
5,544,000
5,544,200
5,543,400
5,546,400
5,547,800
5,547,400
5,545,000
5,545,400
5,543,200
5,543,200
-0$ 184,806,413
Series 2015B Bonds
Principal
$
-0-0-04,200,000
4,410,000
4,630,000
4,860,000
5,105,000
5,360,000
5,625,000
5,905,000
6,200,000
5,510,000
5,660,000
5,945,000
6,130,000
6,310,000
6,500,000
6,695,000
6,895,000
7,105,000
7,325,000
7,620,000
7,925,000
8,240,000
8,570,000
8,915,000
9,270,000
9,640,000
10,025,000
10,425,000
$ 191,000,000
Interest
$ 3,187,376
7,649,701
7,649,701
7,649,701
7,439,701
7,219,201
6,987,701
6,744,701
6,489,451
6,221,451
5,940,201
5,644,951
5,334,951
5,183,426
4,900,426
4,716,131
4,532,231
4,342,931
4,147,931
3,947,081
3,740,231
3,518,200
3,225,200
2,920,400
2,603,400
2,273,800
1,931,000
1,574,400
1,203,600
818,000
417,000
$ 140,154,182
Numbers may not foot due to rounding; numbers rounded to the nearest dollar.
15
Total
$ 3,187,376
7,649,701
7,649,701
11,849,701
11,849,701
11,849,201
11,847,701
11,849,701
11,849,451
11,846,451
11,845,201
11,844,951
10,844,951
10,843,426
10,845,426
10,846,131
10,842,231
10,842,931
10,842,931
10,842,081
10,845,231
10,843,200
10,845,200
10,845,400
10,843,400
10,843,800
10,846,000
10,844,400
10,843,600
10,843,000
10,842,000
$ 331,154,181
Total
Debt Service
$ 13,845,938
18,309,264
19,932,264
18,136,064
18,132,164
17,397,451
17,392.201
17,395,951
17,397,451
17,390,951
17,390,951
17,391,201
16,390,701
16,387,426
16,391,176
16,391,631
16,390,231
16,387,731
16,389,531
16,385,081
16,389,231
16,387,400
16,388,600
16,391,800
16,391,200
16,391,200
16,391,000
16,389,800
16,386,800
16,386,200
10,842,000
$ 515,960,593
DESCRIPTION OF CLEMSON UNIVERSITY
General
The University was founded in 1889, a legacy of Thomas Green Clemson, who willed his Fort Hill
plantation home, its surrounding farmlands and forest, and other property to the State of South Carolina to establish
a technical and scientific institution. Today, as at its inception, the University is dedicated to teaching, research, and
public service, and to improving the quality of life through education. The University is classified by the Carnegie
Foundation as a Doctoral/Research University-Extensive, a category comprising less than 4 percent of all
universities in the United States.
Approximately 22,700 students, including 4,600 graduate students, are enrolled at the University. Students
may choose degree programs offered through the University’s five colleges: Agriculture, Forestry and Life Sciences;
Architecture, Arts and Humanities; Business and Behavioral Science; Engineering and Science; and Health,
Education and Human Development. Programs leading to baccalaureate degrees in approximately 80 fields of study
and 110 graduate programs are offered.
The University is ranked among the nation’s top 25 national public universities by U.S. News and World
Report. A related U.S. News and World report study ranked the University 8th in a listing of most efficient schools
among all national universities.
Research is an integral part of most post-baccalaureate education, and the University provides research
opportunities in practically all fields in which graduate instruction is offered. The University’s mandate in
agriculture and natural resources, architecture, engineering, textiles, basic sciences and technologies is extended to
address the State’s cultural and economic needs through the health sciences, business, education and the humanities.
The University has generated, on average, $131 million in research expenditures per year over the past four years.
The University’s approximately 1,400-acre main campus, located in the northwest corner of South Carolina
on the shores of Lake Hartwell, is surrounded by approximately 17,000 acres of farms and woodlands devoted to
research. The University is approximately two and one half hours from Atlanta, Georgia, Columbia, South Carolina
and Charlotte, North Carolina, and is less than an hour west of Greenville, South Carolina. In addition,
approximately 12,000 acres throughout the State are devoted to research by the University.
In addition to the undergraduate and graduate academic units at the State’s land grant university, the
University provides various public service activities (“PSA”) through its Cooperative Extension Service, the South
Carolina Agriculture and Forestry Research System, the Strom Thurmond Institute, and the Division of Regulatory
and Public Service Programs, which include Pesticide Regulation, Fertilizer Inspection and Seed Certification, and
Plant Industries. The PSA also administers the South Carolina Livestock-Poultry Health Department with
headquarters in Columbia, South Carolina.
The University is accredited by the Commission on Colleges of the Southern Association of Colleges and
Schools (1866 Southern Lane, Decatur, Georgia, 30033-4079; Telephone (404) 679-4500) to award bachelor’s,
master’s, specialist, and doctor’s degrees. All of its professional colleges, schools, and curricula are fully accredited
by accrediting agencies in their respective fields.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
16
Organization and Administration
The Board of Trustees consists of thirteen members, including seven successor Trustees and six Trustees
elected by the General Assembly of the State of South Carolina. At the present time, the Board of Trustees is
comprised of the following members:
Members
E. Smyth McKissick, III, Chairman
John N. (Nicky) McCarter, Vice Chairman
David E. Dukes
Leon J. (Bill) Hendrix, Jr.
Ronald D. (Ronnie) Lee
Louis B. Lynn
Patricia Herring McAbee
Robert L. Peeler
Mark S. Richardson
William C. Smith, Jr.
Joseph D. Swann
Kim Wilkerson
David H. Wilkins
Occupation
CEO, Alice Manufacturing Company, Inc.
President, Defender Services, Inc.
Attorney, Nelson Mullins Riley & Scarborough LLP
Retired Chairman, Remington Arms Company
Ronald D. Lee, DMD, P.C.
President, ENVIRO AgScience, Inc.
Vice President, Custom Development Solutions
Manager, Waste Management Inc.
Owner, MAR Real Estate, LLC
CEO, Red Rock Developments
Retired President of Rockwell Automation Power Systems
President, South Carolina Bank of America
Attorney, Nelson Mullins Riley & Scarborough LLP
The President of the University is the chief executive and administrative officer appointed by the Board of
Trustees. The Administration of the University is divided into five areas, each headed by Vice Presidents
responsible to the President: Academic Affairs, Research, Student Affairs, Advancement, and Public Service and
Agriculture. In addition, the University’s Director of Athletics, General Counsel and Vice President for Finance and
Operations each report directly to the President.
Set forth below is selected biographical data relating to the President and the Executive Officers of the
University.
James P. Clements, President. James P. Clements became Clemson University’s 15th president on
December 31, 2013, after serving nearly five years as president of West Virginia University. He succeeded Jim
Barker, who retired after 14 years as Clemson’s president. He is also a Professor in the School of Computing,
College of Engineering and Science, at Clemson. Clements currently serves as Chair-elect of the Association of
Public and Land-Grant Universities. Clements also co-chairs the U.S. Department of Commerce’s National
Advisory Council on Innovation and Entrepreneurship (NACIE); is a member of the Business Higher Education
Forum; serves as academic co-chair of the Automotive Sector of the Council on Competitiveness-Energy and
Manufacturing Competitiveness Partnership (EMCP); and is national co-chair of APLU’s Energy Forum. He
previously served on the U.S. Commerce Department’s Innovation Advisory Board, where he was the only
university president in the country to serve in that role. Prior to his service at WVU, Clements served as Provost and
Vice President for Academic Affairs, Vice President for Economic and Community Outreach, and the Robert W.
Deutsch Distinguished Professor of Information Technology at Towson University, the second largest university in
the University System of Maryland. He also led the Center for Applied Information Technology, which was a
strategic, entrepreneurial initiative for the university, chaired Towson’s Department of Computer and Information
Sciences, and was a consultant to numerous private-sector companies. He holds a B.S. in Computer Science and
M.S. and Ph.D. in Operations Analysis from the University of Maryland Baltimore County, and an M.S. in
Computer Science from Johns Hopkins University. His Successful Project Management book is now in its 6th
edition and is published in multiple languages and used in numerous countries.
Robert “Bob” H. Jones Jr., Executive Vice President for Academic Affairs and Provost. Dr. Robert H.
“Bob” Jones is an accomplished scholar and researcher who understands the land-grant mission and knows Clemson
well. Dr. Jones served most recently as professor of biology and dean of West Virginia University’s Eberly College
of Arts and Sciences. Prior to this appointment he served as a department head and professor at Virginia Tech and a
faculty member at Auburn University. He earned his bachelors degree in forest management, masters in forestry
both from Clemson and his doctorate in forest ecology from the State University of New York College of
17
Environmental Science and Forestry, Syracuse University. He has published more than 60 refereed articles and was
the principal investigator or co-principal investigator on more than $4.6 million in externally funded research.
A. Neil Cameron, Jr., Vice President for Advancement. Mr. Cameron is a graduate of Georgia State
University, B.S.; Goizueta Business School at Emory University, MBA; and the London Business School, certificate
in International Business. Prior to joining the University, Mr. Cameron was President of Ogilvy & Mather, a large
global advertising and marketing firm. He has (or is currently serving) on several boards, among them, the Atlanta
Ballet, the Atlanta Committee for the Olympic Games, the Peach Bowl, the Chamber of Commerce for Atlanta and
Clemson, United Way, Emory University Center for Leadership and Change, the Clemson University Foundation,
American Advertising Federation, and the Ogilvy & Mather Board of Directors.
John Ballato, Vice President for Economic Development. John Ballato is Vice President for Economic
Development at Clemson University. Dr. Ballato previously served as Clemson’s Vice President for Research
(interim), Associate Vice President for Research and Economic Development, and Faculty Representative to the
Board of Trustees. Through these appointments, he represented Clemson on numerous county-level economic
development organizations and directly participated in the recruitment of many large and small companies across
South Carolina. A professor of materials science and engineering and of electrical and computer engineering, Dr.
Ballato co-founded and directed for 14 years the Center for Optical Materials Science and Engineering Technologies
(COMSET), a South Carolina Research Center of Economic Excellence. He also served as Academic Director for
the Clemson University Restoration Institute (CURI). Dr. Ballato earned a B.S. in Ceramic Science and Engineering
(1993) and the Ph.D. in Ceramic and Materials Engineering (1997) from Rutgers, The State University of New
Jersey. He has published 300 archival scientific papers, holds over 25 U.S. and foreign patents, has given in excess
of 150 keynote and invited lectures, and has co-organized 70 national and international conferences and symposia.
George Askew, Vice President for Public Service and Agriculture. Dr. Askew earned his Ph.D. in
Agronomy in 1981 from Clemson University, where he also matriculated for his B.S. and M.S. degrees. The
University recruited him as a forest geneticist and assistant professor stationed at the Belle W. Baruch Forest
Science Institute in Georgetown, S.C. In 1985, he was promoted to associate professor and institute director. Dr
Askew has served as the first director of the Belle W. Baruch Institute for Coastal Ecology and Forest Science, as
director of the Clemson University Pee Dee Research and Education Center in Florence, and as Regional Director
for a 12-county Extension Service program was added to his responsibilities. After serving as an associate dean and
as Associate Vice-President for Public Service and Agriculture and Director of the Experiment Station. In 2014, Dr.
Askew was named Vice-President for Public Service and Agriculture by President Jim Clements and also continued
to serve as the Experiment Station Director. In June 2014, Dr. Askew was asked to serve as the Interim Dean for the
College of Agriculture, Forestry and Life Sciences. As Interim Dean, he is responsible for the administration of 4
departments and the school within the college including teaching, research, and outreach activities.
Larry Dooley, Interim Vice President for Research. Currently, Dr. Dooley serves as the interim vice
president for research. He oversees several departments within the research division, including research compliance,
research safety, sponsored programs, grants and contracts administration, and CURF. Dooley joined Clemson in
1985 as professor of bioengineering and as the research director for the Bioengineering Alliance of South Carolina.
Named associate dean in 2003, Dooley coordinated the college’s graduate-level activities – including oversight of
the college’s research centers, alliances and institutes. During his 37-year career, including time at Mississippi State,
Dooley has served as chair of the Clemson University bioengineering department, chairman and research
coordinator for the Bioengineering Alliance of South Carolina, acting dean of the college of engineering and
science, president of Clinical Microsystems, Inc., in Melbourne, Florida, and director of the State of Mississippi
Biomedical Engineering Program at Mississippi State University. Dr. Dooley earned his B.S. in mechanical
engineering at Virginia Polytechnic Institute and State University. He completed his masters and doctoral work in
bioengineering at Clemson.
Almeda R. Jacks, Vice President for Student Affairs. Dr. Jacks received her Bachelor’s degree from
Clemson University in Secondary Education/Psychology in 1974, Masters of Education from Clemson University in
1975, and Doctorate of Philosophy from Clemson University in 2009. Dr. Jacks’ professional experience includes
work at the University from 1975 through 2010, in several positions including Vice President for Student Affairs
from 1992 through 2006. More recently, Dr. Jacks has served as the Interim Vice President for Student
18
Development with Manhattan College, in Purchase, New York, and as a Senior Consultant with Keeling &
Associates, LLC, in Provincetown, Massachusetts.
Chip Hood, General Counsel. W.C. “Chip” Hood, Jr., is the General Counsel for Clemson University
where he leads a team of attorneys and staff that provide legal advice to the Board of Trustees, President,
Administration, Faculty, and Staff on matters involving or affecting the University. Prior to joining Clemson, Mr.
Hood was the Executive Director for the Medical University of South Carolina Foundation for Research
Development (MUSC FRD) which serves as the technology transfer office for MUSC. He has also served as the inhouse legal counsel for the MUSC FRD where he not only filed patent applications but was also involved in the
evaluation of new technology, the development of technology commercialization strategies, and the negotiation and
drafting of license agreements. Mr. Hood is a registered patent attorney and also ran his own litigation practice. Prior
to becoming a lawyer, he was employed as an engineer for the Department of Defense. Chip Hood has a Juris
Doctor from the University of South Carolina, a M.S. in Biomedical Sciences from MUSC, and a B.S. in Electrical
Engineering from Clemson University.
Max Allen, Assistant to the President, Chief of Staff, Interim Chief Diversity Officer. Max Allen began as
the Chief of Staff at Clemson University on June 1, 2015. Prior to coming to Clemson, he was the Chief of Staff at
the University of North Carolina Wilmington for twelve years. At Clemson, he serves as the primary liaison with
the vice presidents and other direct reports to the president. In this role, he is helping develop and implement a
comprehensive strategic plan, coordinating a massive strategic reorganization of the campus diversity efforts,
serving as the primary liaison with key community leaders and partners, and serves as a member of the university’s
crisis decision team. He is the president’s chief advisor. His professional activities include service on the BB&T
Local Advisory Board in Greenville, Past President of the 100 Black Men of Coastal North Carolina, Past Chair of
the National Association of Presidential Assistants in Higher Education, and a member of Sigma Pi Phi (Gamma
Sigma) fraternity. Prior to his arrival in Wilmington, North Carolina, he served as the executive assistant to the
president and director of university relations at Georgia College & State University in Milledgeville, Ga. A retired
Navy Lieutenant Commander, Allen has had many successful years of challenging assignments as a public affairs
officer, including serving as spokesman for the Navy’s involvement in the Challenger space shuttle disaster. Allen
holds a bachelor’s degree from Jacksonville University in Florida and is a graduate of the Naval War College in
Newport, Rhode Island, and a graduate of Leadership Georgia Class of 2000. He now lives in Seneca, South
Carolina with his wife Lynn. They have three adult children.
Brett Dalton, Vice President for Finance and Operations. Brett A. Dalton was appointed Vice President
for Finance and Operations for Clemson University in 2012. He is responsible for the leadership and management of
the University’s facilities, maintenance, procurement, environmental safety and human resources departments. He
has responsibility in the area of university strategic planning and implementation of the University’s 10-year plan.
As Vice President, he is also an advisor to the President on financial strategy and resource development and is
responsible for assessment, accountability and management of the University’s financial resources. From 1996 to
June 2007 he was Executive Assistant for Finance and Administration to the Vice President for Academic Affairs
and Provost. Before that, as Director of Financial Planning, he created the University’s first comprehensive
Financial Plan. He has authored and co-authored research articles and publications ranging from environmental
policy research and financial markets analyses to tax and income studies. He received a B.S. and Master of the Arts
from the Walker School of Economics at Clemson University.
Dan Radakovich, Director of Athletics. Radakovich became Clemson’s 13th director of athletics on Dec. 1,
2012. Radakovich came to Clemson from Georgia Tech, where he served for six years (2006-12), and focused on
the construction of new facilities or upgrades to existing ones. Just Clemson’s fifth director of athletics since 1940,
he replaced Terry Don Phillips, who retired after over 10 years directing the program. His administrative career
spans over 26 years. Prior to his tenure at Georgia Tech, Radakovich worked as a senior associate athletic director at
Louisiana State from 2001-06. Radakovich became a director of athletics for the first time at American University in
Washington, D.C. in 2000. Between the 1994-2000 seasons, Radakovich served as chief financial officer for the
University South Carolina athletics. Radakovich gained experience on the West Coast from 1989-94, when he was a
senior associate athletic director at Long Beach State. Radakovich is a 1980 graduate of Indiana University of
Pennsylvania, where he earned a bachelor of science degree in finance. He earned his master’s degree in business
administration from Miami (Fla.) in 1982.
19
Michelle Piekutowski, Chief Human Resources Officer. Ms. Piekutowski is responsible for attracting,
retaining, rewarding and developing talent at Clemson University. She manages and leads all human resources staff
at the University; consisting of more than 1,400 faculty, 3,000 staff, and 10,000 student and temporary employees
and handles the overall leadership, direction, planning, and evaluation of the human resources organization,
including employee relations, benefits administration, recruitment, classification and compensation, database and
records, compliance, and human resource information management. During her tenure, she has served on executive
leadership committees, state leadership councils, process improvement teams, and faculty and staff senates. She has
previously served as Interim Chief Human Resource Officer, Acting Chief Human Resource Officer / Associate
Chief Human Resource Officer, Human Resource Director, Human Resources and Financials PeopleSoft Training
Coordinator and other similar roles while serving the University. She received her Bachelor of Science degree in
Business Education from Western Carolina University in 199, and earned her Master’s degree in Human Resource
Development from Clemson University in 2003.
Angela E. Leidinger, Executive Secretary to the Board of Trustees and Executive Director of Governmental
Affairs. Angie Leidinger serves as Executive Secretary to the Board of Trustees and Executive Director of
Governmental Affairs at Clemson University. As Executive Secretary to the Board of Trustees, she serves as the
liaison between the board and the administration on matters of strategic importance. In her role as Executive
Director of Governmental Affairs, Leidinger has primary responsibility for Clemson University’s governmentrelated activities, ensuring that appropriate strategies are identified and implemented to address the University’s
needs and priorities. She began her career in Government Relations with the McNair Law Firm in Columbia, South
Carolina. In 1999, she joined the South Carolina Department of Commerce as Director of Governmental Affairs. In
March 2002, Leidinger was named Executive Director of Governmental Affairs for Clemson University. She was
named Executive Secretary to the Board of Trustees in February of 2008. Leidinger earned a BS degree in Graphic
Communications from Clemson University in 1990.
Catherine T. Sams, Chief Public Affairs Officer and Assistant to the President. Ms. Sams has served as
Chief Public Affairs Officer for the University since 1993. She provides leadership for university communications
units (media relations, internal communications, publications, direct marketing, and photographic services). She
serves as chief spokesman for the University, public relations counsel for senior administrators, and coordinator for
institutional marketing. During her tenure, Public Affairs has won the Gold Medal for Overall Communications
Programs from the Council for Advancement and Support of Education. Prior to her current position, Ms. Sams
served as Director of News Services for the University and as a science editor and associate experiment station
editor. Prior to entering the public relations profession, she served as a reporter for several papers in South Carolina.
Ms. Sams received a B.A. in journalism from the University of South Carolina and a Master of Arts in English from
Clemson University.
Faculty Members
For the 2014-15 academic year, the University had a total faculty of 1,388 including 909 permanent
tenure/tenure-track faculty and 364 full-time, non-permanent adjunct faculty.
The distribution by rank of the permanent faculty at the University for the past ten academic years, is
shown below:
Academic Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
Professors
362
350
349
349
361
361
366
381
380
408
Associate
Professors
332
301
285
258
261
264
264
259
255
252
Assistant
Professors
291
253
236
256
280
287
319
310
296
239
20
Total
985
904
870
863
902
912
949
950
931
899
Tenured
629
617
609
577
587
592
594
603
599
624
A total of 801 out of 909 (88.1%) permanent faculty hold a terminal degree. The student/faculty ratio (in
full time equivalents) for the 2014-15 academic year was approximately 18.7:1.
Staff Members
The University staff is presently comprised of 2,591 full-time employees and 921 part-time or temporary
employees.
Student Enrollment and Applications
The enrollment (headcount) for the 2014-15 academic year was 17,260 undergraduates and 4,597 graduate
students, or a total undergraduate and graduate enrollment of 21,857. The following table shows the University’s
student enrollment for the academic years set forth below.
Academic Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
__________________
(1)
(2)
(3)
Undergraduate
17,260
16,931
16,562
15,836
15,459
15,346
14,713
14,270
14,172
14,096
Graduate(1)
4,597
4,372
4,206
4,078
3,994
3,765
3,604
3,315
3,137
3,069
Total(2)
21,857
21,303
20,768
19,914
19,453
19,111
18,317
17,585
17,309
17,165
Out-of-State(3)
8,217
7,859
7,534
7,161
6,939
6,737
6,266
5,860
5,694
5,830
Graduate degree-seeking students.
Average enrollment reduction (due to December graduation and attrition) from fall semester to spring semester is approximately 6%. For
purposes of this table, full-time is defined as 12 or more credit hours.
Out-of-State is the count of those students who are not eligible to pay in-state tuition and fees.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
21
Applications, Admissions and Matriculations
The following table shows University applications, admissions and matriculations for the years indicated.
CLEMSON UNIVERSITY
Applications, Admissions, and Matriculations
Freshmen
Transfers
Total
2014-15
Applications
Admissions
Matriculations
20,756
10,694
3,482
2,709
1,714
1,293
23,466
12,404
4,768
2013-14
Applications
Admissions
Matriculations
18,604
10,645
3,290
2,477
1,572
1,147
21,081
12,217
4,433
18,500
10,706
3,465
2,317
1,577
1,166
20,812
12,279
4,623
2011-12
Applications
Admissions
Matriculations
17,016
10,215
2,935
2,357
1,571
1,155
19,373
11,786
4,086
2010-11
Applications
Admissions
Matriculations
16,865
9,724
3,017
2,255
1,461
1,064
19,120
11,185
4,084
2009-10
Applications
Admissions
Matriculations
16,282
10,224
3,386
2,014
1,392
980
18,296
11,616
4,353
2008-09
Applications
Admissions
Matriculations
15,542
8,355
2,927
1,933
1,317
960
17,475
9,672
3,883
2007-08
Applications
Admissions
Matriculations
14,254
7,154
2,765
1,741
1,156
816
15,995
8,310
3,590
2006-07
Applications
Admissions
Matriculations
12,784
6,990
2,813
1,569
1,105
789
14,353
8,095
3,600
2005-06
Applications
Admissions
Matriculations
12,463
7,154
2,904
1,488
1,066
688
13,951
8,220
3,592
Fall Semester of the Year:
2012-13
Applications
Admissions
Matriculations
22
Average SAT Scores
The average Scholastic Aptitude Test (“SAT”) scores of freshmen enrolling at the University and of
freshmen enrolling at all State colleges and universities for the past ten academic years, including the current year,
are as follows:
Academic Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
University Average
1,252
1,246
1,246
1,229
1,231
1,225
1,227
1,221
1,217
1,225
All State
Colleges and Universities
978
971
969
972
979
982
985
984
985
993
Tuition and Fees at the University
Set forth below are tuition and fees charged by the University for the 2015-16 academic year.
In-State
Out-of-State
Undergraduate
Full-Time1
Matriculation1
$ 6,511
5
$ 15,970
5
Part-Time2
Matriculation1
581
5
1,403
5
Graduate
Full-Time1,3
Matriculation1
3,773
5
7,947
5
Part-Time2,3
Matriculation1
489
5
981
5
770
5
770
5
Graduate Assistant1
Matriculation1
_________________
1
Per Semester.
Per Credit Hour.
3
Graduate Tuition is an average of five different tuition fee tiers.
2
23
OTHER FINANCIAL MATTERS
Five-Year Summary of Revenues and Expenditures
The Summary of Current Funds Revenues, Expenditures and Changes in Fund Balance (Unrestricted) of the
University on the following page should be reviewed together with the University’s audited Financial Statements as a
whole for Fiscal Years ended June 30, 2011, 2012, 2013 2014, and 2015 including but not limited to the reports of the
University’s independent accountants and the notes to such Financial Statements.
Effective for the fiscal year ended June 30, 2015, the University adopted GASB Statement No. 68,
Accounting and Financial Reporting for Pensions - An Amendment of GASB Statement No. 27. As a result of this
implementation, the University will now report its portion of the State of South Carolina’s net pension liability.
Since the information for the restatement of beginning balances of deferred inflows of resources or deferred
outflows of resources is not available for the earliest period presented, the cumulative effect of the Statement
implementation is shown as restatement to ending net position as of June 30, 2014 to reflect a Net Pension Liability
of $446,623,196. This adjustment reduced restated unrestricted net position by an equal amount. Please see the
University’s Consolidated Annual Financial Report, attached hereto as Appendix A, for a full discussion, including
Notes 1, 8 and 21 to the Financial Statements and Management’s Discussion and Analysis, for a full discussion.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
24
SUMMARY OF CURRENT FUNDS REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE (UNRESTRICTED)
FISCAL YEAR
2010-11
2011-12
2012-13
2013-2014
2014-2015
$398,834,371
REVENUES:
Student fees
$314,219,494
$333,106,967
$357,868,713
$376,333,786
Federal Appropriations
11,744,390
11,506,604
10,947,994
10,566,435
11,337,741
State appropriations
91,917,068
88,779,884
92,784,135
99,591,087
106,344,796
Federal grants and contracts
11,650,733
11,312,119
10,381,018
10,492,681
13,766,651
State grants and contracts
166,697
150,059
160,565
135,162
111,215
Local grants and contracts
217,930
76,499
318,524
376,689
20,098
Nongovernmental gifts, grants and contracts
Private Gifts
Endowment income
Sales and services of educational departments
Sales and services of auxiliary enterprises
Other sources
Total Current Revenues
790,757
621,822
1,321,585
1,387,806
424,071
20,222,291
1,530,428
362,207
526,516
313,023
9,266
4,633
13,900
9,266
9,266
15,744,849
15,811,731
17,170,816
18,734,372
20,101,533
109,303,342
120,617,019
128,233,372
137,773,738
143,378,591
32,468,098
30,961,868
30,928,478
34,245,785
38,044,251
$608,454,915
$614,479,633
$650,491,307
$690,173,323
732,685,607
174,232,287
176,459,732
196,510,538
212,057,089
222,313,510
72,746,758
68,681,369
74,986,740
83,364,255
89,673,144
EXPENDITURES AND MANDATORY TRANSFERS:
Educational and general:
Instruction
Research
Public service
48,767,926
47,159,278
49,577,225
53,012,127
55,823,047
Academic support
34,548,290
39,585,389
42,309,404
47,297,693
50,575,914
Student services
27,041,656
27,214,751
29,351,340
35,448,642
36,923,396
Institutional support
23,968,566
26,667,948
32,174,800
35,437,291
38,782,101
Operation and maintenance of plant
27,114,869
29,286,006
31,451,915
32,432,327
35,347,077
Scholarships and fellowships
30,615,274
30,912,189
35,665,014
38,222,200
45,033,864
$439,035,626
$445,966,662
$492,026,976
$537,271,624
$574,472,053
Total Educational and General Expenditures
Mandatory transfers for:
Principal and interest
0
0
0
0
0
439,035,626
445,966,662
492,026,976
537,271,624
574,472,053
95,351,792
0
106,253,476
0
110,006,263
0
122,106,917
0
131,063,922
0
95,351,792
106,253,476
110,006,263
122,106,917
131,063,922
534,387,418
552,220,138
602,033,239
659,378,541
705,535,975
(450,240)
(386,076)
(338,621)
(413,207)
(375,223)
Other Nonmandatory transfers, net
(67,595,959)
(39,361,970)
(47,265,841)
(33,941,286)
(40,932,216)
Total other transfers & additions(deductions)
(68,048,199)
(39,748,046)
(47,604,462)
(34,354,493)
(41,307,439)
6,019,298
51,552,334
22,511,449
57,571,632
853,606
80,083,081
(3,459,711)
80,936,687
(14,157,807)
(369,245,219)
$ 57,571,632
$ 80,083,081
$ 80,936,687
Total Educational and General
AUXILIARY ENTERPRISES:
Expenditures
Mandatory transfers for principal and interest
Total Auxiliary Enterprises
Total Expenditures And Mandatory Transfers
Indirect cost remitted to the State
NET INCREASE (DECREASE) IN FUND BALANCE
Fund Balance Beginning, as Restated
Fund Balance Ending
25
$ 77,377,976
$(383,403,026)
Budgeting Procedure
The University is a State-supported land grant institution governed by the Board of Trustees. State
appropriations supporting the University are derived from two sources. First, as is true of other South Carolina
higher education institutions, the South Carolina Commission on Higher Education recommends the distribution of
legislated funding. Second, in support of its land grant mission, Public Service Activities also receive appropriations
directly from the State Legislature. The Board of Trustees approves the annual operating budget and is authorized to
establish tuition and fee amounts. In Fiscal Year 2015-16, the University’s budget for total current funds exceeds
$989 million, of which approximately 11% is appropriated State funds. Total State support for unrestricted
operations of the University at the beginning of the current Fiscal Year increased by $2.9 million.
The University, like all other public institutions of higher education in South Carolina, depends upon the
State of South Carolina as a significant source of revenue. Each year the University, like other public institutions of
higher education, submits a Budget Request to the State Commission on Higher Education (“CHE”). CHE then
compiles the requests, modifies or adopts the request and then presents the combined requests of all institutions to
the Governor. The Governor reconciles the State’s available resources with the total requests and then proposes a
lump sum increase or decrease for all state post-secondary education. The appropriation process then moves to the
General Assembly and ultimately results in a final lump sum appropriation to higher education. CHE distributes this
appropriation using the prior year base plus other methodologies related to relative enrollments or performance.
State appropriations may not lawfully be pledged and are not pledged for payment of debt service on the
Series 2015B Bonds. There can be no assurance that future legislatures will continue to make appropriations at
current or increased levels or that, if made, such appropriations will be timely or sufficient, when added to operating
revenues remaining after debt service, to cover, in full, the operating expenses of the University.
The following is a summary of the unrestricted funds budget for the University for the Fiscal Year indicated:
Budget for Fiscal Year 2015-16
Revenues:
State Appropriations
College Fees
Auxiliary Activities
Miscellaneous Education and General
TOTAL:
$ 109,266,000
354,899,000
23,410,000
256,189,000
$ 743,764,000
Expenditures:
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operations and Maintenance of Plant
Auxiliary Activities
Scholarships and Fellowships
Transfers
Fund Balance Resources
TOTAL:
$ 207,980,000
83,714,000
59,118,000
43,936,000
32,096,000
35,950,000
154,255,000
23,410,000
35,490,000
27,684,000
40,131,000
$ 743,764,000
26
State Support and Its Effect
The moneys required to meet the operating budget of the University are received both from appropriations
from the State and from student fees and other revenues received by the University. The State appropriations are
provided on a year-to-year basis and there is no assurance that the appropriations will continue at the present level.
As in the case of all other State appropriations (except for debt), State appropriations made to the University are
subject to reduction by the State Fiscal Accountability Authority (the “State Authority”) in the event projected
revenues prove insufficient.
The State Authority is perhaps the most important State agency from a fiscal standpoint. The State
Authority is comprised of the Governor, who serves as its Chairman, the State Treasurer, the Comptroller General,
the Chairman of the Senate Finance Committee, and the Chairman of the Ways and Means Committee of the House
of Representatives.
The Governor is required to submit an Executive Budget to the General Assembly within five (5) days after
the beginning of each regular session. Such budget is required to conform to the funding requirements contained in
Article III, Section 36 of the South Carolina Constitution. The Governor is required, by law, to complete a survey of
all departments, bureaus, divisions, offices, boards, commissions, institutions and other agencies to obtain
information upon which to base his budget recommendations no later than November 1 of each year. In this
connection, each of several State departments, bureaus, divisions, offices, boards, commissions, institutions and
other agencies receiving or requesting financial aid from the State are required to report to the Governor in itemized
form, no later than November 1, of each year, the amount needed or requested in the succeeding Fiscal Year. In
addition, on or before November 1 of each year the Comptroller General is required to furnish to the Governor
detailed statements as to appropriations and expenditures for certain prior Fiscal Years and appropriation years. The
Comptroller General is also required to furnish to the Governor on or before December 1 of each year an estimate of
the financial needs of the State itemized in accordance with the budget classifications adopted by the State
Authority.
The budget presented to the General Assembly by the Governor must be accompanied by detailed
statements of prior year’s revenues and expenditures, a statement of current assets and liabilities and other
information with respect to the State’s finances and economic condition. The General Assembly is authorized by law
to increase or decrease items in the budget bill.
The South Carolina Constitution requires a procedure for the monitoring of revenues and expenditures with
a view to a reduction of appropriations as may be necessary to prevent a deficit. For the purpose of providing
projections and forecasts of revenues and expenditures and advising the State Authority on economic trends, the
General Assembly established the Board of Economic Advisors. With respect to the Constitutional requirement of
monitoring revenues, statutory provisions require that the Board of Economic Advisors provide to the State
Authority quarterly estimates of State revenues. If at the end of the first or second quarter of any Fiscal Year
quarterly revenue collections are four percent (4%) or more below the amount projected for such quarter by the
Board of Economic Advisors, the State Authority is required, within fifteen (15) days of such determination, to take
action to avoid a Fiscal Year-end deficit.
The South Carolina Constitution mandates the General Assembly to provide a balanced budget and
provides that if there is a casual deficit, such deficit must be provided for in the succeeding Fiscal Year. For many
years, each annual appropriation bill has contained a provision requiring the State Authority to monitor the
collection of revenues and the expenditure of funds. It has been further provided that if because of a shortfall in
revenues, a deficit appears likely, the State Authority shall effect such reductions of appropriations as may be
necessary to prevent a deficit.
The Educational and General (“E&G”) portion of the University’s budget represents the primary
unrestricted budget for general non-public service operations. Two primary revenue streams support E&G
operations: State appropriations and student fees.
Student fees represent the largest single source of revenue for the University, comprising approximately
47.7% of the Fiscal Year 2015-16 unrestricted budget and 35.9% of the Fiscal Year 2015-16 total budget. The Board
27
of Trustees approved tuition and fee increases of 3.24% for residents and 4.25% for non-residents for fall 2015.
The tuition increase, along with enrollment growth and growth in online and continuing education, is expected to
generate $20.6 million in additional general fund revenue for the coming year.
The table below demonstrates budgeted State appropriations as a percentage of total budgeted operating
funds of the University for the years indicated:
Percentage of Budgeted State Appropriations to
Total Budgeted Current Operating Funds of the University
Fiscal Year
Ended June 30 of:
2016
2015
2014
2013
2012
2011
2010
2009
Total Budgeted Current
Operating Funds
$ 989,249,000
956,204,000
907,040,000
859,763,000
815,276,000
797,382,000
479,094,000
449,009,000
Budgeted State
Appropriations
$ 109,266,000
105,903,000
99,453,000
91,904,000
87,325,000
90,648,000
114,120,000
128,279,000
Percentage of Budgeted
State Appropriations to
Total Budgeted
Current Operating Funds
11.04%
11.08
10.96
10.69
10.71
11.37
23.82
28.57
Pension Plans
The Retirement Division of the South Carolina Public Employees Benefits Authority maintains four
independent defined benefit plans and issues its own publicly available Comprehensive Annual Financial Report
(“Retirement System CAFR”) which includes financial statements and required supplementary information. A copy
of the most recent separately issued Retirement System CAFR and other financial information may be accessed at
retirement.sc.gov/helpfulinfo/default.htm. Furthermore, the Division and the four pension plans are included in the
Retirement System CAFR of the State.
Article X, Section 16 of the South Carolina Constitution requires that all State-operated retirement systems
be funded on a sound actuarial basis. Title 9 of the Code of Laws of South Carolina, 1976, as amended, prescribes
requirements relating to membership, benefits, and employee/employer contributions for each pension plan.
Employee and employer contribution rates for the South Carolina Retirement System and the Police Officers
Retirement System are actuarially determined. Annual benefits, payable monthly for life, are based on length of
service and on average final compensation.
South Carolina Retirement System. The majority of employees of the University are covered by a
retirement plan through the South Carolina Retirement System (“SCRS”), a cost-sharing multiple-employer defined
benefit pension plan administered by the Retirement Division, a public employee retirement system. Generally all
State employees are required to participate in and contribute to the SCRS as a condition of employment unless
exempted by law as provided in Section 9-1-480 of the Code of Laws of South Carolina, 1976, as amended. This
plan provides retirement annuity benefits as well as disability, cost of living adjustment, death, and group-life
insurance benefits to eligible employees and retirees.
Effective July 1, 2012, employees participating in the SCRS were required to contribute 7.0 percent of all
compensation. The employee contributions increased to 7.5 percent effective July 1, 2013, and increased to 8.0
percent effective July 1, 2014. Effective July 1, 2012, the employer contribution rate was 15.0 percent which
includes a 4.92 percent surcharge to fund retiree health and dental insurance coverage. The University’s actual
contributions to the SCRS for the three most recent Fiscal Years ended June 30, 2015, 2014, and 2013 were
$18,570,838, $17,516,809, and $17,286,091, respectively, and equaled the required contributions (including the
required surcharge) for each year. Also, for the Fiscal Year ended June 30, 2015, the University paid employer
group life insurance contributions of $259,128 at the rate of 0.15 percent of compensation.
28
Police Officers Retirement System. The South Carolina Police Officers Retirement System (“PORS”) is a
cost-sharing multiple-employer defined benefit public employee retirement plan administered by the Retirement
Division. Generally, all full-time employees whose principal duties are the preservation of public order or the
protection against or prevention and control of property destruction by fire are required to participate in and
contribute to the System as a condition of employment. This plan provides annuity benefits as well as disability and
group life insurance benefits to eligible employees and retirees. In addition, participating employers in the PORS
contribute to the accidental death fund which provides annuity benefits to beneficiaries of police officers and
firemen killed in the actual performance of their duties. These benefits are independent of any other retirement
benefits available to the beneficiary.
Effective July 1, 2012, employees participating in the PORS were required to contribute 7.0 percent of all
compensation. The employee contributions increased to 7.5 percent effective July 1, 2013, and increased to 8.0
percent effective July 1, 2014. Effective July 1, 2012, the employer contribution rate was 16.45 percent which
includes a 4.92 percent surcharge to fund retiree health and dental insurance coverage. The University’s actual
contributions to the PORS for the years ending June 30, 2015, 2014, and 2013, were $428,310, $400,155, and
$352,498, respectively, and equaled the required contributions (including the required surcharge) for each year.
Also, for the Fiscal Year ended June 30, 2015, the University paid employer group life insurance contributions of
$6,585 and accidental death insurance contributions of $6,585 for PORS participants. The rate for each of these
insurance benefits is 0.20 percent of compensation.
Optional Retirement Program. State employees may elect to participate in the Optional Retirement
Program (“ORP”), a 401(a) qualified governmental defined contribution plan. The ORP was established in 1987
under Title 9, Chapter 17, of the Code of Laws of South Carolina, 1976, as amended. The ORP provides retirement
and death benefits through the purchase of individual fixed or variable annuity contracts which are issued to, and
become the property of, the participants. The State assumes no liability for this plan other than for payment of
contributions to designated insurance companies.
ORP participation is available to all employees who meet all eligibility requirements for membership in the
SCRS. To elect participation in the ORP, eligible employees must waive SCRS membership within their first thirty
days of employment.
Under State law, both employee and employer contributions to the ORP are identical to the contribution
rates of the SCRS.
Certain of the University’s employees have elected to be covered under optional retirement plans. For the
Fiscal Year ended June 30, 2015, total contribution requirements to the ORP were $7,048,416 (excluding the
surcharge) from the University as employer and $8,458,099 from its employees as plan members. All amounts were
remitted directly to the respective annuity policy providers. The obligation for payment of benefits resides with the
insurance companies.
Deferred Compensation Plan.
Several optional deferred compensation plans are available to State
employees and employers of its political subdivisions. Certain employees of the University have elected to
participate. The multiple-employer plans, created under Internal Revenue Code Sections 457, 401(k), and 403(b),
are administered by third parties and are not included in the Comprehensive Annual Financial Report of the State of
South Carolina. Compensation deferred under the plans is placed in trust for the contributing employee. The State
has no liability for losses under the plans. Employees may withdraw the current value of their contributions when
they terminate State employment. Employees may also withdraw contributions prior to termination if they meet
requirements specified by the applicable plan.
Teacher and Employee Retention Incentive. Effective January 1, 2001, Section 9-1-2210 of the Code of
Laws of South Carolina, 1976, as amended, allowed employees eligible for service retirement to participate in the
Teacher and Employee Retention Incentive (“TERI”) Program. TERI participants may retire and begin
accumulating retirement benefits on a deferred basis without terminating employment for up to five years. Upon
termination of employment or at the end of the TERI period, whichever is earlier, participants will begin receiving
monthly service retirement benefits which will include any cost of living adjustments granted during the TERI
period. Participants who entered the TERI program prior to July 1, 2005, do not make SCRS contributions, do not
29
earn service credit, and are ineligible to receive group life insurance benefits or disability retirement benefits.
Participants who entered the TERI program as of July 1, 2005, or after are required to make SCRS contributions, but
do not earn service credit and are ineligible to receive disability retirement benefits. The TERI Program will be
closed effective June 30, 2018.
Physical Plant
The University owns all of its campus property. The principal physical facilities of the University include
more than 300 buildings both on campus and throughout the State. Funds for construction of many of the physical
structures on the University campus have come primarily from the State in the form of direct appropriations or
proceeds from the sale of Capital Improvement Bonds, which are general obligations of the State and not an
obligation of or payable by the University.
The following table sets forth the book value of various assets of the University for each of the Fiscal Years
shown.
Land
Construction in Progress
Utilities systems and
Other Non-Structural
Improvements
Buildings and
Improvements
Computer Software
Equipment
Vehicles
Total
2011
$ 32,133,383
78,006,644
2012
$ 32,702,685
95,696,715
2013
$ 32,702,685
94,522,162
2014
$ 32,702,685
23,201,848
2015
$ 34,116,890
120,386,763
23,506,063
449,344,281
23,101,379
491,752,027
24,252,357
552,749,048
24,180,837
577,418,197
22,955,457
556,221,684
602,922
46,406,021
9,827,223
$639,826,537
195,181
42,621,062
10,368,564
$696,437,613
95,514
55,842,759
10,434,252
$770,598,777
12,072,286
111,208,899
10,879,528
$791,664,280
8,049,322
118,700,095
2,910,897
$863,341,108
The University had several major capital projects underway at June 30, 2015 including the Core Campus
project, Douthit Hills, Watt Innovation Center, and Memorial Stadium.
Insurance
All buildings and equipment on the campus of the University are insured through the Insurance Reserve
Fund, a self-funded insurance plan operated by the State.
The University is exposed to various risks of loss and maintains State or commercial insurance coverage
for each of those risks. The University believes such coverage is sufficient to preclude any significant uninsured
losses to the University. Settled claims have not exceeded this coverage in any of the past three years. The
University pays insurance premiums to certain other State agencies to cover risks that may occur in normal
operations. Several State funds accumulate assets and the State itself assumes substantially all risks for the
following:
(1)
Claims of State employees for unemployment compensation benefits;
(2)
Claims of covered employees for workers’ compensation benefits; and
(3)
Claims of covered employees for health, dental, and group-life insurance benefits.
In addition, the University pays premiums to the State’s Insurance Reserve Fund which accumulates assets
to cover the risks of loss related to the following assets and activities:
(1)
Real property and its contents;
(2)
Motor vehicles and aircraft;
30
(3)
General tort liability claims;
(4)
Business interruption;
(5)
Builder’s risk;
(6)
Inland marine; and
(7)
Data processing.
The State’s Insurance Reserve Fund reinsures for a portion of the coverage for these liabilities.
Tort Liability and Insurance
The State Supreme Court, in the case of McCall v. Batson, decided April 18, 1985, abolished the doctrine
of sovereign immunity in the State of South Carolina. In response to this decision, the South Carolina General
Assembly in its 1986 session enacted the South Carolina Torts Claim Act which reestablished a qualified doctrine of
sovereign immunity with respect to local government in South Carolina. Subject to specific immunity set forth in the
South Carolina Tort Claims Act, local governments including the University are liable for damages not to exceed
$300,000 per incident/person and $600,000 per occurrence/aggregate (except in the case of physicians and dentists
employed by local governments, for which the per incident limit is $1,200,000). No punitive or exemplary damages
are permitted under the South Carolina Tort Claims Act. Insurance protection to local government is provided by
either the Insurance Reserve Fund, private carriers, self-insurance or pooled insurance funds. The University
currently maintains liability insurance coverage with the Insurance Reserve Fund.
DEBT STRUCTURE OF THE UNIVERSITY
Outstanding Debt
The University’s debt consists of the following categories:
(1)
General Obligation State Institution Bonds of the State of South Carolina (“State Institution
Bonds”), may be issued by the State upon an approved request of a State institution, such as the University. State
Institution Bonds may be issued to construct, reconstruct, maintain, improve, furnish and refurnish the buildings and
other permanent improvements of a State institution, to defray the costs of acquiring or improving land needed as
sites for such improvements or for the campus of a State institution, to reimburse such institution for expenses
incurred in anticipation of the issuance of such bonds, or to refund State Institution Bonds. State Institution Bonds
are secured by a pledge of the full faith, credit and taxing power of the State, and in addition, by a pledge of
designated tuition fees collected by the University. State Institution Bonds are issued by the State on behalf of the
University.
(2)
Higher Education Revenue Bonds, defined herein as Revenue Bonds, may be issued by the
University for the purpose of financing or refinancing in whole or in part the cost of the acquisition, construction,
reconstruction, renovation and improvement of land, buildings and other improvements to real property and
equipment for the purpose of providing facilities serving the needs of the University including, but not limited to,
dormitories, apartment buildings, dwelling houses, bookstores and other stores operated by the University, laundry,
dining halls, cafeterias, parking facilities, student recreational, entertainment and fitness related facilities, inns,
conference and other nondegree educational facilities and similar auxiliary facilities of the University and other
facilities which are auxiliary to any of the foregoing, excluding, however, Athletic Department projects which
primarily serve varsity athletic teams of the University. Revenue Bonds are payable from and secured by a pledge of
the net revenues derived from the operation of the Facilities and the Additional Funds, as such terms are defined in
the Bond Resolution.
31
(3)
Athletic Facilities Revenue bonds (“Athletic Facilities Revenue Bonds”) may be issued by the
University for the purpose of financing or refinancing in whole or in part the cost of constructing and improving
facilities designated by the Board of Trustees as intercollegiate athletic facilities. Athletic Facilities Revenue Bonds
are secured by a pledge of Net Revenues, Admissions Fees and any Special Student Fee as such terms are defined in
the bond resolution authorizing the issuance of Athletic Facilities Revenue Bonds.
The following table shows the categories of outstanding long-term obligations of the University as of
December 1, 2015.
Amount Outstanding
Category of Indebtedness
State Institution Bonds
Revenue Bonds
Athletic Facilities Revenue Bonds
Total
$110,615,000
110,860,0001
118,875,0002
$340,350,000
____________________
1
Does not include the Series 2015B Bonds.
2
Does not include the University’s Athletic Facilities Revenue Bonds, Series 2015B, anticipated to be delivered on or about December 18, 2015
in the amount of $19.85 million for the University’s football operations center project.
Future Debt Issuances
State Institution Bonds. The Board of Trustees has requested and received approval from the State for the
State to issue an anticipated $6.5 million in State Institution Bonds on behalf of the University to fund infrastructurerelated costs associated with the “Douthit Hills” project referenced below. The University anticipates issuance of the
bonds in winter or early spring, 2016. The Board of Trustees has adopted a resolution making application to the
State for not exceeding $51 million of State Institution Bonds to fund a portion of a $75 million power grid
renovation to take place over the next three years. The Board of Trustees may seek State approval for the issuance of
bonds to support this project during 2016. The Board of Trustees has given conceptual approval for an academic
building to replace Sirrine Hall, with an anticipated project cost of $87.5 million, to provide academic,
administrative, and classroom space. State Institution Bonds are the contemplated funding source. The Board of
Trustees may seek State approval for the issuance of bonds to support this project during 2016.
Athletic Facilities Revenue Bonds. Coincident with the issuance of the Series 2015B Bonds, the University
is issuing approximately $19.85 million of Athletic Facilities Revenue Bonds to construct and equip a football
operations facility.
Debt Payment Record
There has been no default in the payment of principal or interest on any bonds issued by or on behalf of the
University. The University has never borrowed for the purpose of refunding any bonds in order to prevent a default,
nor has the University borrowed for the purpose of paying the cost of operations or for funding a deficit.
LEGAL MATTERS
Litigation
No litigation is presently pending or, to the knowledge of the University, threatened in any court to restrain
or enjoin the sale, execution, issuance, or delivery or otherwise affect the validity of the Series 2015B Bonds, or in
any way contesting or affecting the validity of the Series 2015B Bonds or any proceedings of the Board of Trustees
taken with respect to the authorization, sale, or issuance of the Series 2015B Bonds or the pledge or application of
any moneys provided for the payment of or security for the Series 2015B Bonds. Certifications to those effects will
be delivered at the time of the original delivery of the Series 2015B Bonds.
32
The University is involved in a number of legal proceedings and claims with various parties arising in the
normal course of business. However, these claims should be covered by the University’s insurance or by
contingency funds reserved for that purpose should the University be found at fault, and these are not expected to
have a material adverse effect on the financial position of the University.
United States Bankruptcy Code
The undertakings of the University should be considered with reference to Chapter 9 of the Bankruptcy
Code, 11 U.S.C. §§ 901, et seq., as amended, and other laws affecting creditors’ rights and certain public bodies
generally. Chapter 9 permits a municipality, political subdivision, public agency, or other instrumentality of a State
that is insolvent or unable to meet its debts as such debts mature to file a petition in the United States Bankruptcy
Court for the purpose of effecting a plan to adjust its debts; directs such a petitioner to file with the court a list of its
creditors; provides that the filing of the petition under that Chapter operates as a stay of the commencement or
continuation of any judicial or other proceeding against the petitioner; directs a petitioner to file a plan for the
adjustment of its debts; permits the petitioner in its plan to modify the rights to payment of its creditors; and
provides that the plan must be accepted in writing by or on behalf of creditors of each impaired class of claims
holding at least two-thirds in amount and more than one-half in number of the creditors which have accepted or
rejected the plan. The plan may be confirmed notwithstanding the negative vote of one or more classes of claims if
the court finds that the plan is in the best interest of creditors, is feasible, and is fair and equitable with respect to the
dissenting classes of creditors. A petitioner has the right to reinstate indebtedness under its plan according to the
original maturity schedule of such indebtedness notwithstanding any provision in the documents under which the
indebtedness arose relating to the insolvency or financial condition of the debtor before the confirmation of the plan,
the commencement of a case under the Bankruptcy Code, or the appointment of or taking possession by a trustee in
a case under the Bankruptcy Code or by a receiver or other custodian prior to the commencement of a case under the
Bankruptcy Code.
Legal Proceedings
All quotations from and summaries and explanations of provisions of laws of the United States of America
and of the State herein do not purport to be complete and are qualified in their entirety by reference to the official
compilations thereof. All references to the Series 2015B Bonds, the Resolution and the Series 2015B Resolution are
qualified in their entirety by reference to the definitive forms of the Series 2015B Bonds, the Bond Resolution and
the Series 2015B Resolution. All such summaries, explanations and references are further qualified in their entirety
by reference to the exercise of the sovereign powers of the State and the constitutional powers of the United States
of America, and to valid bankruptcy, insolvency, reorganization, moratorium and other laws for the relief of debtors.
Certain legal matters with regard to the issuance of the Series 2015B Bonds are subject to the approval of
Pope Flynn, LLC, Columbia, South Carolina, Bond Counsel, whose approving opinion will be available at the time
of the delivery of the Series 2015B Bonds. Certain other legal matters will be passed upon for the University by
Howell Linkous & Nettles, LLC, as Disclosure Counsel for the University and by Chip Hood, Esquire, General
Counsel to the University.
The various legal opinions to be delivered concurrently with the delivery of the Series 2015B Bonds
express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed
therein. By rendering a legal opinion, the opinion giver does not become an insurer or guarantor of that expression
of professional judgment, of the transaction opined upon, or of the future performance of parties to such
transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of
the transaction.
Tax Exemption and Other Tax Matters
The following discussion is a summary of certain anticipated federal income tax consequences of the
purchase, ownership and disposition of the Series 2015B Bonds. It is based in part on the opinion of Pope Flynn,
LLC, Bond Counsel with respect to the Series 2015B Bonds, and on the Internal Revenue Code of 1986, as amended
(the “Code”), the regulations promulgated thereunder, published revenue rulings and case precedent currently in
effect, all of which are subject to change or possible differing interpretations. This summary of federal income tax
33
consequences is subject to modification by the issuance of regulations or rulings or by subsequent administrative or
judicial interpretation, which could apply retroactively. The form of the opinion of Bond Counsel is included herein
as Appendix C.
This summary does not purport to address all aspects of federal (or state or local) income taxation that may
affect particular investors in light of their individual circumstances, nor certain types of investors who are subject to
special provisions of the Code, such as life insurance companies, tax-exempt organizations, foreign taxpayers and
taxpayers who may be subject to the alternative minimum tax or personal holding company provisions of the Code.
This summary is further limited to investors who will hold the Series 2015B Bonds as “capital assets” (generally,
property held for investment) within the meaning of Section 1221 of the Code. POTENTIAL INVESTORS
SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT WHICH MAY BE
ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF THE SERIES
2015B BONDS IN THEIR PARTICULAR CIRCUMSTANCES BEFORE DETERMINING WHETHER TO
PURCHASE SERIES 2015B BONDS.
The opinion of Pope Flynn, LLC, Bond Counsel, to be delivered in connection with the Series 2015B
Bonds will state that, assuming continuing compliance by the University with certain covenants and the
requirements of the Code and the applicable regulations promulgated thereunder (the “Regulations”), interest on the
Series 2015B Bonds is excludable from gross income of the owners thereof for federal income tax purposes under
existing statutes, regulations, and judicial decisions. In addition, the opinion of Pope Flynn, LLC, will state that,
under existing law, the Series 2015B Bonds are not “specified private activity bonds” within the meaning of the
alternative minimum tax provisions of the Code and that, accordingly, interest on the Series 2015B Bonds is not a
specific item of tax preference for purposes of the federal alternative minimum tax imposed on corporations and
other taxpayers, including individuals. However, such interest will be included in a corporate taxpayer’s adjusted
current earnings preference item for purposes of calculating its federal alternative minimum taxable income.
Further, such opinion will state that the Series 2015B Bonds and the interest thereon will be exempt from all State,
county, municipal, school district and other taxes or assessments imposed within the State of South Carolina, direct
or indirect, general or special, whether imposed for the purpose of general revenue or otherwise, except estate or
other transfer taxes, and certain fees or franchise taxes.
The Code and the Regulations impose restrictions, conditions, and requirements relating to the
excludability from gross income of the owners thereof for federal income tax purposes of interest on obligations
such as the Series 2015B Bonds. The University has made certain representations and covenanted to comply with
certain restrictions, conditions, and requirements designed to ensure that interest on the Series 2015B Bonds will not
be includible in gross income of the owners thereof for federal income tax purposes. Inaccuracy of these
representations or failure to comply with these covenants may result in interest on the Series 2015B Bonds being
includable in gross income of the owners thereof for federal income tax purposes, possibly from the date of original
issuance of the Series 2015B Bonds. The opinion of Bond Counsel assumes the accuracy of these representations
and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person)
whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to their
attention after the date of issuance of the Series 2015B Bonds may adversely affect the value of, or the excludability
from gross income for federal income tax purposes of interest on, the Series 2015B Bonds.
Certain requirements and procedures contained or referred to in the Bond Resolution and the Series 2015B
Resolution, tax certificates, and other relevant documents may be changed and certain actions (including, without
limitation, defeasance of the Series 2015B Bonds) may be taken or omitted under the circumstances and subject to
the terms and conditions set forth in such documents. Bond Counsel expresses no opinion as to any Series 2015B
Bond or the interest thereon if any such change occurs or action is taken or omitted upon the advice or approval of
counsel other than Pope Flynn, LLC.
The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly
addressed by such authorities, and represents its judgment as to the proper treatment of the Series 2015B Bonds for
federal income tax purposes. Such opinion is not binding on the Internal Revenue Service (“IRS”) or the courts.
Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the
University or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof, or
34
the enforcement thereof by the IRS. The University has covenanted, however, to comply with the requirements of
the Code.
Although Bond Counsel is of the opinion that interest on the Series 2015B Bonds is excludable from gross
income of the owners thereof for federal income tax purposes, the ownership or disposition of, or the accrual or
receipt of interest on, the Series 2015B Bonds may otherwise affect an owner’s federal, state, or local tax liability.
The nature and extent of these other tax consequences depend upon the particular tax status of the owner or the
owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax
consequences with respect to the Series 2015B Bonds and prospective purchasers of the Series 2015B Bonds should
consult their own tax advisors as to the applicability thereof.
Prospective purchasers of the Series 2015B Bonds should be aware that ownership of tax-exempt
obligations may result in other federal (and, in some cases, state and local) tax consequences to certain taxpayers,
including, without limitation, financial institutions, property and casualty insurance companies, life insurance
companies, certain foreign corporations, certain S corporations, individual recipients of Social Security or Railroad
Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or
carry tax-exempt obligations. Bond Counsel expresses no opinion concerning such other tax consequences and
prospective purchasers of the Series 2015B Bonds should consult their own tax advisors as to the applicability
thereof.
Future legislation, if enacted into law, or clarification of the Code may cause interest on the Series 2015B
Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent owners from realizing
the full current benefit of the tax status of such interest. The introduction or enactment of any such future legislation
or clarification of the Code may also affect the market price for, or marketability of, the Series 2015B Bonds.
Prospective purchasers of the Series 2015B Bonds should consult their own tax advisers regarding any pending or
proposed federal tax legislation, as to which Bond Counsel expresses no opinion.
The IRS has established an ongoing program to audit tax-exempt obligations to determine whether interest
on such obligations is excludable from gross income of the owners thereof for federal income tax purposes. Bond
Counsel cannot predict whether the IRS will commence an audit of the Series 2015B Bonds. Bond Counsel’s
engagement with respect to the Series 2015B Bonds ends with the issuance of the Series 2015B Bonds, and, unless
separately engaged, Bond Counsel is not obligated to defend the University or owners of the Series 2015B Bonds
regarding the tax-exempt status of the Series 2015B Bonds in the event of an audit examination by the IRS. The IRS
has taken the position that, under the standards of practice before the IRS, Bond Counsel must obtain a waiver of a
conflict of interest to represent an issuer in an examination of tax-exempt bonds for which Bond Counsel had issued
an approving opinion. Under current procedures, parties other than the University and their appointed counsel,
including the Series 2015B Bond owners, would have little, if any, right to participate in the audit examination
process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt
obligations is difficult, obtaining an independent review of IRS positions with which the University legitimately
disagrees may not be practicable. Any action of the IRS, including but not limited to selection of the Series 2015B
Bonds for audit, or the course or result of such audit, or an audit of tax-exempt obligations presenting similar tax
issues to the Series 2015B Bonds may affect the market price for, or the marketability of, the Series 2015B Bonds,
and may cause the University or the Series 2015B Bond owners to incur significant expense, regardless of the
ultimate outcome.
Original Issue Premium
The difference between the amount payable at maturity of the Series 2015B Bonds maturing on May 1,
2019 through 2030, inclusive and the Series 2015B Bonds maturing on May 1, 2037 through 2046, inclusive
(collectively, the “Premium Bonds”), and the tax basis of such Series 2015B Bonds to a purchaser (other than a
purchaser who holds such Series 2015B Bonds as inventory, stock in trade or for sale to customers in the ordinary
course of business) who purchases the Premium Bonds at the initial offering price, is “Bond Premium.” Bond
Premium is amortized over the term of the Series 2015B Bonds for federal income tax purposes. Owners of Series
2015B Bonds are required to decrease their adjusted basis in Series 2015B Bonds by the amount of amortizable
Bond Premium attributable to each taxable year that Series 2015B Bonds are held. Owners of Series 2015B Bonds
should consult their tax advisors with respect to the precise determination for federal income tax purposes of the
35
treatment of Bond Premium upon the sale or other disposition of Series 2015B Bonds and with respect to the State
of South Carolina and local tax consequences of owning and disposing of Series 2015B Bonds.
Original Issue Discount
The initial public offering prices of the Series 2015B Bonds maturing on May 1, 2031 through 2036,
inclusive (collectively, the “Discount Bonds”) are less than the amounts payable with respect to such Discount
Bonds at maturity. An amount not less than the difference between the initial public offering prices of the Discount
Bonds and their stated redemption price at maturity constitutes original issue discount which, to the extent deemed
to accrue, will be excludable from gross income for federal and State of South Carolina income tax purposes. Such
original issue discount is not a specific item of tax preference for purposes of the federal alternative minimum tax on
corporations and other taxpayers, including individuals. However, the portion of the original issue discount that
accrues in each year to an owner of a Discount Bond that is a corporation will be included in the calculation of the
corporation’s alternative minimum tax liability. Consequently, corporate owners of any Discount Bonds should be
aware that the accrual of original issue discount in each year may result in an alternative minimum tax liability
although the owners of such Discount Bonds have not received cash attributable to such original issue discount in
such year.
State Tax Exemption
Bond Counsel is of the opinion that the Series 2015B Bonds and the interest thereon are exempt from all
taxation by the State of South Carolina, its counties, municipalities and school districts except estate, transfer or
certain franchise taxes. Interest paid on the Series 2015B Bonds is currently subject to the tax imposed on banks by
Section 12-11-20 of the Code of Laws of South Carolina, 1976, as amended, which is enforced by the South
Carolina Department of Revenue as a franchise tax. The opinion of Bond Counsel is limited to the laws of the State
of South Carolina and federal tax laws. No opinion is rendered by Bond Counsel concerning the taxation of the
Series 2015B Bonds or the interest thereon under the laws of any other jurisdiction.
MISCELLANEOUS
Underwriting
The Series 2015B Bonds have been purchased by Citigroup Global Markets Inc. (the “Underwriter”) at
competitive sale from the University for resale. The Underwriter has agreed, subject to certain conditions, to
purchase the Series 2015B Bonds at an aggregate purchase price of $205,426,626.99 (representing the aggregate
principal amount of the Series 2015B Bonds of $191,000,000.00 plus a premium, net of underwriter’s discount, of
$14,065,391.10, plus accrued interest from December 1, 2015). The initial public offering yields of the Series 2015B
Bonds are set forth on the inside front cover of this Official Statement and may be changed from time to time by the
Underwriter. The Underwriter may also allow a concession from the public offering prices to certain dealers. The
Underwriter has received no fee from the University for underwriting the Series 2015B Bonds. If the Series 2015B
Bonds are sold at the public offering yields as set forth on the inside front cover of this Official Statement, the
Underwriter anticipates a total underwriters’ discount of $678,050.00 for the Series 2015B Bonds.
Ratings
As noted on the cover page of this official statement, Moody’s Investors Service, Inc. and Fitch Ratings,
and their successors (collectively the “Rating Services”) have assigned the Series 2015B Bonds the ratings of “Aa2”
and “AA,” respectively. Such ratings reflect only the respective views of the Rating Services, and an explanation of
the significance of such ratings may be obtained from the Rating Services. The University makes no representation as
to the appropriateness of the ratings. The University has furnished to the Rating Services certain information and
materials regarding the Series 2015B Bonds. Generally, the Rating Services base ratings on such information and
materials and on investigations, studies, and assumptions furnished to and obtained and made by the Rating Services.
There is no assurance that such ratings will remain unchanged for any given period of time or that ratings may not be
lowered or withdrawn entirely by the Rating Services, if in their judgment circumstances warrant. Any such downward
revision or withdrawal of a rating may have an adverse effect on the market price of the Series 2015B Bonds. An
explanation of the ratings can be received from Moody’s at the following address: Moody’s Investors Service, Inc.,
36
7 World Trade Center, 250 Greenwich Street, New York, New York; and from Fitch Ratings, One State Street
Plaza, New York, New York.
Independent Audits and Other Financial Information
The University’s financial statements were audited by Elliott Davis Decosimo, LLC, Greenville, South
Carolina, for the Fiscal Years ended June 30, 2012, 2013, 2014, and 2015. The University’s Comprehensive Annual
Financial Report (the “CAFR”) for the Fiscal Year ended June 30, 2015, including the audited financial statements
for the Fiscal Year ended June 30, 2015 (the “2015 Financial Statements”), is included in this Official Statement as
Appendix A. The report of Elliott Davis Decosimo, LLC, dated October 1, 2015, is set forth in Appendix A. The
2015 Financial Statements, including the footnotes thereto, should be reviewed in their entirety by prospective
purchasers of the Series 2015B Bonds. Elliott Davis Decosimo, LLC has consented to the inclusion of its report in
Appendix A but has not undertaken to update its report or to take any action intended or likely to elicit information
concerning the accuracy, completeness, or fairness of the statements made in this Official Statement, and no opinion
is expressed by Elliott Davis Decosimo, LLC with respect to any event subsequent to its report dated October 1,
2015, relating to the 2015 Financial Statements.
The University’s Comprehensive Annual Financial Reports, including its audited financial statements for
the Fiscal Years ended June 30 of the years 2009 through 2014 are available for review on the website of the
Municipal Securities Rulemaking Board (“MSRB”) at www.emma.msrb.org and for the Fiscal Years ended June 30
in
the
years
2002
through
2014
on
the
website
of
the
University
at
http://www.clemson.edu/finance/comptroller/cafr/. No other information from the University’s website is
incorporated by reference into this Official Statement.
With respect to evaluating the ability of the University to make timely payment of debt service on the
Series 2015B Bonds based on information contained in the CAFR, no representation is made that such information
contains all factors material to such an evaluation or that any specific information should be accorded any particular
significance. The 2015 Financial Statements represent a comprehensive report of the University’s finances and
include funds, accounts, and revenues that are not pledged to the payment of debt service on the Series 2015B
Bonds. This Official Statement should be considered in its entirety and no one factor should be considered more or
less important than any other solely by reason of its location herein. See “APPENDIX A - COMPREHENSIVE
ANNUAL FINANCIAL REPORT OF THE UNIVERSITY FOR FISCAL YEAR ENDED JUNE 30, 2015” attached
hereto.
Continuing Disclosure
Rule 15c2-12 Undertaking. In order to assist the Underwriters of the Series 2015B Bonds to comply with
the provisions of Rule 15c2-12 of the United States Securities and Exchange Commission under the Securities
Exchange Act of 1934, as the same may be amended from time to time (the “Rule”), the University will enter into a
written agreement (the “Continuing Disclosure Undertaking”) for the benefit of the holders and beneficial owners of
the Series 2015B Bonds. The form of the Continuing Disclosure Undertaking is set forth in Appendix D to this
Official Statement.
Under the Continuing Disclosure Undertaking, the University has undertaken for the benefit of the Holders
of the Series 2015B Bonds to provide annually financial information and operating data regarding the University,
which is the only “obligated person” (within the meaning of the Rule) for which financial information or operating
data is provided in this Official Statement, by not later than February 1 of each year, commencing February 1, 2016
(the “Annual Report”) for the Fiscal Year 2014-15. The Annual Report shall include, at a minimum, the annual
audited financial statements of the University prepared in accordance with accounting principles generally accepted
within the United States of America as promulgated to apply to governmental entities from time to time by the
Governmental Accounting Standards Board and other financial information and operating data as described in the
Continuing Disclosure Undertaking. Under the Continuing Disclosure Undertaking, the University has also
undertaken for the benefit of the Holders of the Series 2015B Bonds, to provide notices of certain enumerated events
(the “Event Notices”) as provided in the Rule within the time frame required by the Rule. The Annual Reports and
Event Notices will be filed with the MSRB’s Electronic Municipal Market Access system (“EMMA”) in the manner
37
prescribed by the Rule. See Appendix D to this Official Statement for a more complete description of the
University’s undertaking under the Rule.
On November 30, 2010, Standard & Poor’s Ratings Services withdrew the rating of Ambac Assurance
Corporation, the municipal bond insurer of the University’s Revenue Bonds, Series 2003 (the “Series 2003 Bonds”).
The University did not post this rating change on EMMA. Since the Series 2003 Bonds have since been paid off or
defeased, the University no longer has any continuing disclosure obligation with regard to them.
On July 24, 2015, the University discovered that some financial information filed on EMMA on a timely
basis, contained in its 2013 Annual Report and 2014 Annual Report, had been incorrectly calculated. On August 4,
2015, the University made a voluntary filing on EMMA to correct the information that had been inadvertently
misreported.
Currently, the only “obligated person” (within the meaning of the Rule) with respect to the Series 2015B
Bonds is the University. No other person or entity is obligated to provide, or is expected to provide, any continuing
disclosure information with respect to the Rule.
State Law Requirement. Pursuant to Section 11-1-85 of the Code of Laws of South Carolina 1976, as
amended (“Section 11-1-85”), the University has covenanted to file with a central repository for availability in the
secondary bond market when requested: (i) an annual independent audit within thirty days of the University’s
receipt of the audit; and (ii) event specific information within thirty days of an event adversely affecting more than
five percent of the revenues of the University. The only remedy for failure by the University to comply with these
covenants is an action for specific performance. Moreover, the University has specifically reserved the right to
amend the covenants to reflect any change in Section 11-1-85 without the consent of any Bondholder.
Paying Agent’s Disclaimer
U.S. Bank National Association, as Paying Agent and Registrar has not provided, or undertaken to
determine, the accuracy of, any of the information contained in this Official Statement and makes no representation
or warranty, express or implied, as to (i) the accuracy or completeness of such information, (ii) the validity of the
Series 2015B Bonds, or (iii) the tax exempt status of the interest on the Series 2015B Bonds.
Closing Certifications
Upon the delivery of the Series 2015B Bonds, the University will furnish the purchaser with certifications
of appropriate officials of the University stating in substance: (a) that there is no litigation pending or, to the
knowledge of the University, threatened in any court to restrain or enjoin the issuance or delivery of any of the
Series 2015B Bonds or the collection of revenues pledged or to be pledged to pay the principal of and interest on the
Series 2015B Bonds, or in any way contesting or affecting the validity of the Series 2015B Bonds or the Resolution,
or the power to collect and pledge revenues to pay the Series 2015B Bonds, or contesting the power or authority of
the University to issue the Series 2015B Bonds or adopt the Resolution; (b) establishing that the Series 2015B
Bonds are not “arbitrage” bonds, within the meaning of Section 148 of the Code and the applicable Treasury
Regulations thereunder; and (c) that this Official Statement, as of its date and as of the date of delivery of the Series
2015B Bonds, does not contain any untrue statement of a material fact and does not omit to state a material fact
which should be included therein for which this Official Statement is intended to be used or which is necessary to
make any statement contained therein, in the light of the circumstances under which it was made, not misleading.
38
Financial Advisor
First Southwest Company (“FirstSouthwest”) is acting as Financial Advisor (the “Financial Advisor”) to
the University in connection with the issuance of the Series 2015B Bonds. The Financial Advisor’s fee for services
rendered with respect to the sale of the Series 2015B Bonds is contingent upon the issuance and delivery of the
Series 2015B Bonds. FirstSouthwest, in its capacity as Financial Advisor, has not verified and does not assume any
responsibility for the information, covenants and representations contained in any of the legal documents with
respect to the federal income tax status of the Series 2015B Bonds, or the possible impact of any present, pending or
future actions taken by any legislative or judicial bodies or rating agencies.
CONCLUSION
Further inquiries should be addressed to Rick Petillo, Director, Debt and Capital Financing, Clemson
University, G06 Sikes Hall, Clemson, South Carolina 29634 (telephone: (864) 656-2421; email:
[email protected]); Steven Kantor, Managing Director, First Southwest Company, 5925 Carnegie Boulevard,
Suite 380, Charlotte, North Carolina 28209 (telephone: (212) 642-4350; email: [email protected]) or Gary
T. Pope, Jr., Esquire, Bond Counsel, Pope Flynn, LLC, 1411 Gervais Street, Suite 300, Columbia, South Carolina
29201 (telephone: (803) 354-4917; email: [email protected]).
CLEMSON UNIVERSITY
By: /s/ Richard D. Petillo
Richard D. Petillo
Director, Debt and Capital Financing
39
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX A
AUDITED FINANCIAL STATEMENTS OF
THE UNIVERSITY FOR FISCAL YEAR
ENDED JUNE 30, 2015
[THIS PAGE INTENTIONALLY LEFT BLANK]
CLEMSON, SOUTH CAROLINA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2015
A component unit of the State of South Carolina
A component unit of the State of South Carolina
For the Year Ended June 30, 2015
TABLE OF CONTENTS
TITLE
PAGE
Introductory Section:
President's Letter .....................................................................................................................................
6
Letter of Transmittal................................................................................................................................
8
...................................................................................................................... 12
................................................................................................... 13
................................................................................................. 14
Financial Section:
!..................................................................................................................
"
#
.................................................................................................
$
%
&
(%
)* ................................................................................
(%
!+,-
)* .....................
(%
$/..................................................................................
$
(%
$
* ...................................................
$
(%
.................................................................
5
%/
$
(%
$
* .....................
5
%/
$
(%
...................................
*:(%
$
*.............................................................................................
*:(%
..........................................................................................................
)$
%
&
) < ( %
%
* ................................................................
) = (
,>
+#
.................................................
) ?( !
@ ....................................................................................................................
) A ( .................................................................................................................
) B ( !+#
$C ............................................
) D(*
@................................................................................................................
) E ( 5
@
...........................................................................................................
) F ( **
.................................................................................................................
) G (*(,
* ...........................................................
)<H (#
*
........................................................................................
)<< ( 5(5
@ ....................................................................................................
)<= ( ...........................................................................
)<? ( !
*
...............................................................................................................
)<A (
/%
, .....................................................................................
)<B( !I"
..........................................................................................................
)<D ( 5
.........................................................................................
)<E ( ,-@$ ...................................................................................
)<F ( #(!,/ ......................................................................................
)<G ( #
! ...........................................................................................
)=H ( ...........................................................................................................
)=< ()/* ..................................................................................
!>%
&
%*
%
)*5
@ ....................................
%@..............................................................................................
~3~
17
20
28
29
30
31
32
33
34
35
36
37
42
43
45
45
47
50
51
57
58
58
59
60
60
61
62
63
63
64
64
65
67
68
TABLE OF CONTENTS
(continued)
TITLE
PAGE
Statistical Section:
%!@% ............................................................................................................
%,-@ ................................................................................................................
%,-@$ .........................................................................................................
%)*
)* ..........................................................................
%!
#@ .................................................................................................
%
....................................................................................................................
+,
#%
.......................................................................................
$ ...................................................................................
$
%
%
......................................................................................................................
%
...................................................................................................
#
%
............................................................................................................................
5
,............................................................................................................................
72
74
75
76
77
78
80
82
84
85
86
87
Supplementary Information to the Financial Statements:
%*)!(-
!J%=HHB+=H<=
=H<BK ..................... 90
%*)!($
!
J%=HHB+=H<=+=H<A+=H<A+=H<A+
=H<BK ........................................................................................ 91
!,(@%
)M$
*....................... 92
!,(@%
!+,-+
)* ............................................................................................... 94
~4~
(unaudited)
President’s
Letter
2015
#
$&
=H<B
/
@
I
N
>
O
$+@I=H
I
@+
/
/I
>
OQ
/+>
@+
O/@I
/R
/@
I
-
SO
"
<>
+&
U $
C
+
,#
VQW*
?
"
%
V
#X
@
%
+
/
O
U Y?HQ
$
+//@
=H<DO(
EH+HHH(>
(
@
@
@
Q
X
/+Z
O+/+
(((
I
I
O
U YGD
R+@,
O/+/
+
/SCO
U 5R+=H<D(<E@
I@
O
U Y=<=
@
#C
/
@
=H<FO
U Y=< WI $
Z
,
+ / !
)
+/
@
@
(
O
U !
Z+/
!
#/
@
/
@
O
~6~
And that’s just the beginning. Future projects include the renovation of the Sheep Barn into a new student
activity center, made possible by a generous gift from the Barnes family of Rock Hill, S.C.; a new building
to house our business school programs; electrical infrastructure upgrades; and continuing investments in
key academic, student services and athletic priorities.
Our strategic plan — 2020Forward — is another way we are building for the future. The plan, which has
received preliminary approval from the Board of Trustees, includes the following priorities:
• Continuing to focus on quality in all we do
• Providing high-impact engagement opportunities to students as a cornerstone of undergraduate
education.
• Growing research and doctoral enrollment, with emphasis on programs and research focus areas where
we can achieve national prominence, and an organizational structure that supports excellence.
• Making Clemson an exceptional place to work.
• Increasing our commitment to diversity and inclusiveness.
The plan also retains many of the strategic priorities of the 2020 Road Map – including a sustained Top
20 national ranking, an aggressive capital improvement plan, and commitment to outreach and economic
progress for South Carolina.
When I think about what we have accomplished this past year at Clemson, I am reminded of the concept
of “Cathedral thinking,” which means having a long-term vision and planning not just for the next 5 years,
but the next 50 or 100 years. When the architects, stonemasons, and artisans of medieval times began to
build a cathedral, they knew they might not live to see it completed, but they laid out their blueprints and
plans for how to complete the structure, knowing their work would be appreciated by countless generations
to come. That’s exactly what we’re doing at Clemson, so that the University will continue to contribute to
the prosperity of South Carolina for generations.
Thank you for supporting Clemson University as we work together for a great future.
Sincerely,
James P. Clements, Ph.D.
President
~7~
LETTER OF TRANSMITTAL
@=+=H<B
*+
"@
+
%
Q
$
!
‹ ?H+ =H<BO @ S
@
O
"
@ @ +@
/I
/
@
O
-
@+
@R
@+
@+
of material misstatements.
%
/+
+
@
>
S
@
O$
‹?H+=H<B+
/@
,#
#+55+
S
O
+
@
O
S
O
"
S
J"#ŒK
/
S
+/+
@
O"#Œ
@
R/O
/
<FFG+ Z + / / $C
+
+
%
@
%
O
AAD
<FG?O
+
@
$
!
MC+
@
-
A
O%
EH <HH O S (
+
++
@
%
(@
,-+(
!
,
+
@
O
@
@
@+-@%
Z
@
(
@O
%
%
J
K
O
%
>@
@
@
@,
Z
,-
*@%O,
@/
O
-O
@S
%
S
-
@O*
/@
@
%
O
~8~
Z
%
JZ%K
%=<HH&
+
%=DHH&
+
/
@
@
O + $
+ !
$
+ 5
%/
$
*: O>+
O
% S ‹+=H<B/
BO?+
=OB‹+
=H<?O )
+ /
DO< +
%
I<E+/
+
+@@%
#
,
QIO
%
,I+@@
%
#
+
A<+DHHR@
O$
‹+
5
C
+
(
R
+
*
% + / @ ,
C
% Z J@
I
KO
+%
<=<+EHHR@
/
O
"
%
+D
O!
/
A
+
//?H
O
%
/
<?O%
<+FHHR@
O
%
I
/(
O
:
-/=H<A
=H<B
&‘
-
//V
-
/
-
/
V
@
+ I + O’
S ( I
&
x $
=H=H*
x %
x %
x ,
x *
(!
*%
@
RYE
O
/
S
/
O
Y=OA
-
>
O
%
5
-@
//
(
+ + O Y<OB C
Z
YEBH+HHH(!*R#(
O
+
Y<OB*%,$
+$

@
*+
A(C
:
)
!O
$
!
Y<<<+<EB+HHH=H<B
"
%
+
/
I(
/
Q"
%
+
X %
+ 5RO
YGH+=FB+HHH
!@/
R(
OR
++
+
+
-
O
=H<A(<B
/
+@/
(
/
I =H @@O%O)/ŒQ!O
I
+
(=B
I+
(
@*,‹
$O
I
O/
I
‘(
(’
/
<<
I/
O*!/
)/I
@I
*
:
I&=HH
Q
I
ZO@I
I<G(
=B
*
:
I“Q
O
#O ‹
*O + S <B + /
*@
5
(
/
-
C,
$+
(
@
@/@
/I
O/
@
,
(
+
R
@
S
O
@
/
,-*
* @ ‹+ / #
,@
%
Q
O/
~9~
"
$
#
5@
+"
-/(
%
+#O
‹
I
*
%
+
#OZI/
#
+$+
5%O%
#
Z
%+ * !
+
#
//
O
*‹+
=H=H!
"
O)
‘=H=H$/
+’/
(
@*$
,Z
@

*$
#
O
+
/I
& (
+
(
+
O
+
+
(
I>O
/
/
O
@
I
-
O
/ + +
+
-
&
@+
+
+
/
@
V
/
V
(
-
V
(O
/
@
O
C+/
R
&
x :
(
=H<A(<B/Y<?DOD
+ + ((I O ‹ ?H+ =H<B+ Q 5
YG?A O BFD / /+
<<?
+J/
K
Y<FBOB
S
/O
x $/
/
"O Z/
%
,- %+"
+
,+
-
@
/
O
/
<H
/
Z/
%
O
x / )
$
Q
+ #OO
S
/
@
S @ Z # * /
/
O%O
@
O
~ 10 ~
x +#
B+
Z
" !
#+ "O+ O
@
:
WJ
K//
=H=HO @ /I
@
((
+
@/
O#
E/@@"Q
Z
/")O
x *@
5
(
,
*S
@ O
/I / @ +
+
+
/I + O /
@ )
%$
()
, *
/
J,K
R *
/
*
+ /
O
x @I/
R
RN
R
#C
N
/
5RO
x =HH % ,,
S,#
O
%
I
WI+,
Z+
‹
,O!+
@
#I ,O S
/*V
$
C
@/I+ "
+ V !
Q+
)OO%
O
x % ,S)
‹O
==
O%O
+@+
+
/
O
/
$
*
+/@
/I
>
S
@OB
O
x S%
#
(+ (/
+*O<B
O%O#
,S%
#
+
//@
O
x /O%OZ
#
!
+
GH@
DH+HHH
@@
%
)@O
I E =B @
@ /@
%
,OO/
I
% !
+ O
Statewide initiatives
Z+
!
J(!K@I
/
Y<A@
/@
(
+
R@+
@
/IOF=+HHH(>
(
@
-
==HR@
Y=OD(
O
@
"
+
@/
Z
O
/
O(!
%
, #
#
#
,O #
(
!
,"
%
O%O
@S(
I/#,
/
‘
’/
O
!
J!K
) + @
Y=<OB (
WI $
Z
,
O Q =H<D+/
S
*O#O
O
/
/
-
=HH + <= + AH O+WI$
Z
,
/
!
IO5(+
WI
‹
WI
/@
S
O
*//Z/@
@-(
/,-
+
”),
,
)"
O / @S
+
C/
S!I
‘/•CS’/
@
O
I - / Z C
% JZC%K
/
ZC%$
$/O
@ $
X ‹ Q(
@
//
@
@/
ZC%O S N
@
/ Z C
% N @ @ (
C
,
*
+
O
+
/
%OO
%
(
O
/ I +
+
@/
/
O
/
/
%
(
/
@
/IO
Awards and Acknowledgements
Z $
%
JZ$K /
,- $
! ‹?H+=H<AO
/
/
O
@
/
+
@
@
J$!K+
/
O%
$!
@
@
>O
O ‹?H+<GG?OQ@
>+
/
@Z$O
$
! / @ @
/ S O ,
@ @
O
%+
O#
Vice President for Finance and Operations
~ 11 ~
~ 12 ~
!""#$%
&!'$(!$
J
‹?H+=H<BK
$
$$
#
COQIO+
5*O
+‹O
*
+)"!Œ%
@55*
+!
5*O
‹)OJ)IK"
+‹O+
*+#%+O
#
,O#I
*
+)"!Œ%
@55*
5‹OJKC-+‹O
+!
!
!
#OJ!K5
‹O‹O
%$
C
$O#I+‹O
C
#OJ#KX
+%Q
O"+‹O
!
#O5+#"#+*OO
*+"!
,
+O
5O5
#O5
*+,)!%+O
*
C"@
*+#%
,O%"XI+
!
%
*OQ
!
"+QI+Q
+5O
,+"
+O
!@5O*
"
+
"
!
Q
"
O
"
I%O!
+
/+"!!
,
+55
Q
O%+‹O+
,+!!I#
‹#O%/
*+!
!I/
*/%
XQI
*+%
I
~ 13 ~
!""#$%
!$)'"*'!"+'$
!""#$%
&!'$(!$
EXECUTIVE SECRETARY
TO THE BOARD
$("
ASSISTANT TO THE
PRESIDENT AND
CHIEF OF STAFF
ASSISTANTS TO THE PRESIDENT
EXECUTIVE VICE PRESIDENT FOR
ACADEMIC AFFAIRS AND PROVOST
ATHLETIC DIRECTOR
VICE PRESIDENT FOR FINANCE
AND OPERATIONS
DIRECTOR
INTERNAL AUDIT
VICE
PRESIDENT
FOR ECONOMIC
DEVELOPMENT
VICE
PRESIDENT
FOR PUBLIC
SERVICE AND
AGRICULTURE
VICE
PRESIDENT
FOR
RESEARCH
EXECUTIVE DIRECTOR FOR
GOVERNMENTAL AFFAIRS
VICE PRESIDENT FOR STUDENT AFFAIRS
GENERAL COUNSEL
VICE PRESIDENT FOR
UNIVERSITY ADVANCEMENT
CHIEF DIVERSITY OFFICER
ACCESS & EQUITY
~ 14 ~
Financial Section
Independent Auditor’s Report
Members of the Board of Trustees
Clemson University
Clemson, South Carolina
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities and the aggregate
discretely presented component units of Clemson University (the University), a component unit of the State of
South Carolina, as of and for the year ended June 30, 2015, and the related notes to the financial statements,
which collectively comprise the University's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the Clemson University Research Foundation (a discretely presented component unit),
the Clemson University Foundation (a discretely presented component unit), the Clemson University Land
Stewardship Foundation (a discretely presented component unit), and IPTAY (a discretely presented component
unit). The Clemson University Research Foundation, the Clemson University Foundation, the Clemson University
Land Stewardship Foundation, and IPTAY represent 100% of total assets, 100% of net assets or position, and
100% of total revenues of the discretely presented component units. Those statements were audited by other
auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts
included for these discretely presented components units, are based solely on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
www.elliottdavis.com
~ 17 ~
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities and the
aggregate discretely presented component units of the University as of June 30, 2015, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Implementation of New Accounting Pronouncement
As discussed in Note 21 to the financial statements, the University adopted the provisions of Governmental
Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions, effective for
fiscal year ending June 30, 2015. Our audit opinions are not modified with respect to this matter.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion
and Analysis on pages 20-27, Schedule of University’s Proportionate Share of Net Pension Liability on page 67
and Schedule of University Contributions on page 68 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management regarding the methods of
preparing the information and comparing the information for consistency with management’s response to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient audit evidence to express an opinion or provide any
assurance.
~ 18 ~
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the University’s basic financial statements. The Introductory Section, Schedule of Pledge Net Revenues
– Auxiliary Revenue Bonds (Series 2005, 2012 and 2015), Schedule of Pledge Net Revenues – Athletic Facilities
Revenue Bonds (Series 2005, 2012, 2014A, 2014B, 2014C and 2015), Clemson University Reporting Entity –
Combined Statement of Net/Financial Position, and Clemson University Reporting Entity – Combined Statement
of Revenues, Expenses, Activities and Changes in Net Position and Statistical Section, as listed in the
accompanying table of contents are presented for purposes of additional analysis and are not a required part of
the financial statements. Such information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance
on it.
Greenville, South Carolina
October 1, 2015
~ 19 ~
UNAUDITED
MANAGEMENT’S DISCUSSION AND
ANALYSIS
Overview of the Financial Statements and
Financial Analysis
=H<BO Q =H<A / +
/@
OC/+
@
/@
O
& %
) *V %
!+
,-
)*V
+%
$/O
@
O
S
/
O
Adoption of New Accounting Standards
Z
%
JZ%K %
DF+ $
!*J
Z%
%
)O =EK+ ‹ ?H+ =H<BO
>
@ @ @ @ J
‹ ?H+ =H<AKO - + %
+
/
%
@
R
+ @
O
+
%
+ + @ @
O
+@@
”/
”/ @ O % @@
”/
”/
@
+ %
/@/
‹ ?H+ =H<AO +
‹?H+=H<A
@YAAD+D=?+<GDO
@
Y<E=+BH?+E=A ‹?H+=H<AO
Statement of Revenues, Expenses and Changes in
Net Position
%
!+,-
)
*
-
O
O@>
+
@S
/ O Z% > @
O
(
+
+”
+/
-O
%
) * @
%
!+,-+
)*O
@+@
+
-
@+
+
+-+
@O
Z
I+
O
-
-
>
+ O )
/
O %
‘@+
-+
O’
%
!+ ,- )*”
/
)*
O%
%
/&
Total Revenues – decrease of $11.2 million
x Y??O<+@
/&
¾ % Y<DO= + ? ?O= O,
O
¾ %
YFOB O
%
-
YDOFO
@
/
O@
=O?
@
C O )(
-
Y?DA+HHHO
% #
"
%/
@
O
%
Y<O?
:5
-
O
~ 20 ~
UNAUDITED
Condensed Summary of Net Revenues, Expenses
and Changes in Net Position (thousands of dollars)
Description
2015
2014
Increase/
Decrease
Percent
Change
Revenues:
Student tuition and fees
Sales and services
Grants and contracts
Other operating revenues
Total operating revenues
State appropriations
Federal appropriations
Gifts and grants
Investment income
Other nonoperating revenues
Proceeds from the sale of capital assets
Total nonoperating revenues
Total revenues
Expenses:
Services and supplies
Utilities
Depreciation
Scholarships and fellowships
Total operating expenses
Interest on capital asset related debt
Loss on disposal of capital assets
Refunds to grantors
Facilities and administrative remittances to the State
Total nonoperating expenses
Total expenses
Income before other revenues, expenses, gains or losses
State capital apppropriations
Capital grants and gifts
Additions to permanent endowments
Change in net position
Net position, beginning of year as originally stated
Retatement, Note 21
Net position, beginning of year as restated
Net position, ending
$
316,893
149,223
132,997
38,322
637,435
106,345
11,338
33,586
4,756
340
188
156,553
793,988
$
300,711
140,705
128,082
34,840
604,338
99,591
10,566
62,951
26,741
648
376
200,873
805,211
$
16,182
8,518
4,915
3,482
33,097
6,754
772
(29,365)
(21,985)
(308)
(188)
(44,320)
(11,223)
5.38%
6.05%
3.84%
9.99%
5.48%
6.78%
7.31%
(46.65)%
(82.21)%
(47.53)%
(50.00)%
(22.06)%
(1.39)%
478,991
262,955
19,783
49,316
25,411
836,456
7,341
4,343
137
375
12,196
848,652
444,913
243,893
20,344
42,974
23,846
775,970
5,512
(1,200)
178
413
4,903
780,873
34,078
19,062
(561)
6,342
1,565
60,486
1,829
5,543
(41)
(38)
7,293
67,779
7.66%
7.82%
(2.76)%
14.76%
6.56%
7.79%
33.18%
461.92%
(23.03)%
(9.20)%
148.75%
8.68%
(54,664)
24,338
(79,002)
(324.60)%
4,457
6,448
209
(43,550)
9,397
6,198
123
40,056
(4,940)
250
86
(83,606)
(52.57)%
4.03%
69.92%
(208.72)%
$ 1,156,425
(446,623)
709,802
1,116,369
—
1,116,369
40,056
(446,623)
(406,567)
(36.42)%
$ 666,252
$ 1,156,425
$ (43,550)
(42.39)%
3.59%
¾ Z
YAOGO!
Y<OBO
Z
#
,+#
+
)
%$
@
O5*
$/+5+
C
@
YAO=
O5
YEBF+HHH
Z/ZO
)
YAG+HHH O
¾ Y?OB
+
%
OMZC
%
@
+
+)
#*
"
@
O
~ 21 ~
UNAUDITED
Total Revenues
$793,988 (thousands of dollars)
Sales and Services of Educational
and Other Activities
$20,104
Local and Nongovernmental
Grants and Contracts
$12,105
Other Operating
Revenues
$38,322
Sales and Services of
Auxiliary Enterprises
$129,119
State Grants
and Contracts
$57,352
State Appropriations
$106,345
Federal Grants
and Contracts
$63,540
NONOPERATING
$156,553
Student Tuition and Fees
$316,893
Federal Appropriations - $11,338
Gifts and Grants
$33,586
Interest
Income,
Nonoperating
Revenues and
Sale of Capital
Assets $1,198
Endowment Income - $4,086
x )
YAAO?+@
/&
¾ %
YDOF O
,
ΠZ
J,ŒZK
Y?O<O *@%J*%K
Y?OEO
¾ $
YEE=+HHHO $
S (
C
O
¾ Z
Y=GOAO*:
/ S
/ /
*:
O
¾ Y==O
@ $
Q$
O
¾ Y?HF+HHH
@
O
¾ * > Y<FF+HHHO
Total Expenses – increase of $67.8 million
x -
YDHOB+@
/&
¾ @
Y?AO<
O
@
@
@
/
R
O
¾ %
-
Y<GO<O
Y<O?
O!
Y<A=+HHH
O*@
Y=A+HHHO
Y<O?
Z
O%
-
Y=AA+HHH
+
O
Y<OG
*%$
*%
C
!O Y<<O= R
RO%
$/
Y=AH+HHH
*:
-O-
YD
"
%
O
¾ -
YBD<+HHHO
/I / /
,!*
OC
++
/
Q@#
$
)
O
¾ #
-
YDO?
Q@#
$
Z%
)
/
,!*
O
¾ %
/ - Y<OD
*
$/+5+
C
/
*
O
x )
-
YEO?@
/&
¾ - Y<OF /!
$
@@
-
Y=HH
O
~ 22 ~
UNAUDITED
Total Expenses by Function
$848,652 (thousands of dollars)
Operation and
Maintenance of Plant
$77,156
Scholarships and Fellowships
$23,773
Institutional Support
$42,388
Interest on Capital Debt
$7,341
Student Services
$37,345
Auxiliary Enterprises
$ 126,150
Academic
Support
$47,633
Depreciation
$49,316
Public Service
$65,814
NONOPERATING
EXPENSES
$12,196
Instruction
$227,482
Loss on Disposal
of Capital Assets
$4,343
Research
$139,399
Refunds to
Grantors
$137
Facilities & Administrative
Remittances to the State - $375
¾ 5 YBOB
@
!
)
O
¾ ! YA<+HHH -
@
//I/
O
¾ $
%
Y?F+HHHO %
> (
R
- Y=HH+HHH @ O ,
Z
Y?A+HHH *@%
YA+HHHO
x %
YAOG
/
@
@
Y?
%
!$
@ !
,
# @ !
)
O
x Y=BH+HHHO <DOAE
Z/
Y<O?
/
@ R
@R
O
x YFD+HHH
/
/
O
;<="
>
$848,652 (thousands of dollars)
Scholarships and Fellowships
$25,411
Depreciation
$49,316
Utilities
$19,783
Interest on Capital
Asset Related Debt
$7,341
Services and Supplies
$262,955
NONOPERATING
EXPENSES
$12,196
Compensation and
Employee Benefits
$478,991
Loss on Disposal
of Capital Assets
$4,343
Refunds to
Grantors - $137
Facilities and Adminitrative
Remittances to the State - $375
~ 23 ~
UNAUDITED
)
R
O
+ + S>+
+
>/
@O-
+
/ / + -
@ -
@O!-
@
S
/
@O,-
@
@-@@
@
@
M
-
O
O
@
/O
@R-
+
@
S
@
O
Statement of Net Position
%
) * +
”/ + @+ ”/
+
O%
)*
O%
)
*
O%
)
*((
J
/ / /
/ / @ K+ #
”/!J@
@ K+
5
@J/
//
@/
K+#”/
!J
>@
@
K+
)*
J
#”/!+5
@
#”/!KO
@
+ / / - @
/
+
/
-
O
$ + %
) * @ @ O @ / / +
+
O$
+%
)*
J
”/
@
”/K
@-@
O
'
?(?!>
@B$>H
increase of $204.4 million
x Y<<DOAO
@
Y<E?+HHH
Y<=HO<O
/
@
O-
$ -O ! !
$
"
%
+ 5R + X
%
+
O
@
Condensed Summary of Net Position (thousands of dollars)
Description
Assets
Current assets
Capital assets, net
Other noncurrent assets
Total assets
Liabilities
Current liabilities
Noncurrent liabilities
Total liabilities
Net Position
Net investment in capital assets
Restricted - nonexpendable
Restricted - expendable
Unrestricted
Total net position
2015
$
549,438
863,341
211,517
1,624,296
Increase/
(Decrease)
2014
$
433,066
791,664
235,918
1,460,648
$ 116,372
71,677
(24,401)
163,648
Percent
Change
26.87%
9.05%
(10.34)%
11.20%
42,619
1,907
40,712
2134.87%
1,666,915
1,462,555
204,360
13.97%
135,412
826,904
962,316
114,557
638,196
752,753
20,855
188,708
209,563
18.20%
29.57%
27.84%
38,347
—
38,347
0.00%
1,000,663
752,753
247,910
32.93%
41,095
82
(57,994)
(26,733)
$ (43,550)
6.43%
0.14%
(31.38)%
15.50%
(6.14)%
680,331
58,323
126,834
(199,236)
$ 666,252
~ 24 ~
639,236
58,241
184,828
(172,503)
$ 709,802
UNAUDITED
YAOD
@
@
Q
@#
$
)
O
Z
@
YBBG+HHH
/
O @ @ Y<OE
O
Y?O=/
@
-O
@
YAA<+HHH
@
@
O*
Y< >
+
/
/
O
Y=OD
(
‹?H+=H<A
/@
@@
@
‹?H+=H<DO
x )
YE<OEO)(
@
YGFODO*
@ YGEO= R @ R + # C+ Q
+
"
%
O5
Y<OA
/Z/Z
%#
!
%O#
@
Y=DOGO
Y=<O=
@/
@
Q@
#
$
O#
/
-
(
Y<O=O
/
YA
/
@
+
@
@/
Y<OBO
,> YEOB O Y<F/
@
-O
YFO
Y<OF
/@
-
(
/
O
x Y=AOA O @
$
J$K
YAOB
+
+ O ) @
@
YAO<
R
/
>O/+
/(
>+((
I//O
Y<D=+HHH / @Q$
O!
@
Y==OA
/
O%
@
Y<?<+HHH*I
$
O
Y=O<
( @ /@
@@M
R
@
‹?H+
=H<EO
x # ”/ YAHOE O
# @ Y=GE+HHH
%=HHB$
!@O#”/
YAHOA
@
/
S
O
=
?(?@B$>H
increase of $247.9 million
x @
Y=HOGO
@Y<FOB/
@
@
RO
@
Y<
O
Y=OD/
@
@
-
/*:
O
@Y<
R(
‹?H+=H<?O
(@
Y=OD
- @ Y<OD
!
$
@ O @
@
YAH=+HHH
O
Y=EA+HHH @
O
x ) @ @ Y<FFOE O S
@
)*OS
@
YDO?
YAB=OG
O5(@
Y<F<OF@
!
$
@ O (
@ @ @
YBBE+HHHO
YDD+HHH @
O
x #”/
S
@
Y?FO?O#”/
@/
R S O
Net Position – decrease of $43.5 million
x ) YA<O< O
YE<OE+
@Y<FAOA
+ @ Y<B?OB
+ Y=GE+HHH ”/ @O
x ! “ -
@ /
YF=+HHH
O
~ 25 ~
UNAUDITED
x ! -
@ YBF
+@
/&
¾ !“-
@
/ Y<?O= *:
/
/*:
O
¾ ! “ -
@ Y<D<+HHH
%
*
RO
¾ !“-
@
M
YEOF/
(
>
@R
*%C!
RO
¾ !“-
@
Y<<A+HHH
*I
O
¾ !“-
@
R
Y?BOF+
+
R + # C+ "
%
O
¾ !“-
@@
Y<O<
>@O
x Y=DOE O
/
> Z%
DF+ $
! *O
! @ @
O ! S
@
YAAD+D=?+<GD
‹?H+
=H<AO
@
”/
”/
YAO=
‹?H+=H<BO
/
=H<A
Y<BG+<DF+FDH-
@(
/ O
/
S
*:
O O
/
YEOD
O
@+
“
YAOB+
“ R
YB+“@
YEE<+HHH+
“
-
YDO<O
Statement of Cash Flows
%
$/O%
$/
@
O
O
/
”/
/
@
O”
”/
O”
++
O
/
”/
O
/
>
O”
”/
/
++
O
”%
!+,-
)*O
Capital Assets
+
+
‹?H+=H<B
‹?H+=H<A/
/&
Capital Assets (net of accumulated depreciation)
Description
Capital Assets:
Land and improvements
Construction in progress
Utilities systems and other non-structural
improvements
Buildings and improvements
Computer software
Equipment
Vehicles
Total Capital Assets
2015
2014
$ 34,116,890
120,386,763
$
32,702,685
23,201,848
22,955,457
556,221,684
8,049,322
118,700,095
2,910,897
24,180,837
577,418,197
12,072,286
111,208,899
10,879,528
$ 863,341,108
$ 791,664,280
Increase/
Decrease
$ 1,414,205
97,184,915
(1,225,380)
(21,196,513)
(4,022,964)
7,491,196
(7,968,631)
$ 71,676,828
Percent
Change
4.32%
418.87%
(5.07)%
(3.67)%
(33.32)%
6.74%
(73.24)%
9.05%
YGFOD (
@ /
@
@ *O5
-
Y<OA/
Z/Z
%#
!
%O*
-
YGEO=
~ 26 ~
UNAUDITED
R+#C+Q
+
"
%
O
%
)(%
-
Y<O=O/
/
YG<F+HHH , $
@
R
/
@
-/
-
Y=O<O
Y=<O=
Q@#(
$
Z%
R)
O
%/
YA O
C/
Y<OB/
@
/
-
/
O
,>
YEOBO)
-
YF /
@ YDHH+HHHO

YFO
Y<OF/@
-
(/
O
+>/
” @
- O
$
+
) A “ ) $
%
O
Debt Administration
S Y?DH+EEA+B=D @ @ Y<?+GG?+HEF @
‹?H+=H<BO
S @ @ &
Z
@
Y<<E+EF<+?GB+$
! Y<=A+G<A+?=A+ !
Y<<F+HEF+FHEO Z
@
@
%
%
@
++
-/%
/
O $
! @ S
#
O!@
@
@
S + @I+ +
I+
‘’@
O
#@+=H<A+$
!
YBH+AFH+HHH
"
%
+X%
+
% =HHB $
! O
"
+ =H<B+ $
!
YDH+DGB+HHH
5RO"
+=H<B+
C ,
! YGH+=FB+HHH
RO
Y<?+GG?+HEF
/5
%/
$
J5%$K+ + Z
//Z+%O
@
‹?H+=H<B/
Y<=+GG<+FB<O
/
"
!
5
@
O @ ‹ ?H+ =H<B+ /
Y<+HH<+==EO
$ / @+
#@
+)D
E
O
Economic Outlook
%
+ S %
% O %
=H<B /
Y?<G @
O (((
/ + %
Z
!
,I
S Z
$
YAE=
+
EO?O
/
-
/
AOA
/
=H<A(=H<B @O @I+
YFE/
!$Z
@
O
%
YDOF =H<B+ O
,
Z
Y=O=
+ *@ % YAODO
%
/
@ -
Y=OE + YB<O< +
=H<BO
+Y<OEB
%
C,
%++,
"
J%,"K
O
%
@
-
YAOG
(
O%
YF=B+HHH
>
+Y<O<
+
Y<OG
!
)
O
S
@
=H<D
?O=A
(
+
AO=B
((
+
?O=B
O
?
@
/@
+
O
~ 27 ~
CLEMSON UNIVERSITY
STATEMENT OF NET POSITION
‹?H+=H<B
Clemson
University
Description
ASSETS
Current Assets:
Cash and cash equivalents .................................................................................................................................................
Restricted Assets - Current:
Cash and cash equivalents ............................................................................................................................................
Accounts receivable (net of provision for doubtful accounts of $882,822) .................................................
Grants and contracts receivable......................................................................................................................................
Contributions receivable, net ...........................................................................................................................................
Interest and income receivable .......................................................................................................................................
Student loans receivable ....................................................................................................................................................
Inventories ...............................................................................................................................................................................
Prepaid items ..........................................................................................................................................................................
Other current assets.............................................................................................................................................................
Total current assets....................................................................................................................................................
Noncurrent Assets:
Notes receivable.....................................................................................................................................................................
Contributions receivable, net ...........................................................................................................................................
Investments .............................................................................................................................................................................
Restricted Assets - Noncurrent:
Cash and cash equivalents ............................................................................................................................................
Student loans receivable ...............................................................................................................................................
Other assets .............................................................................................................................................................................
Capital assets, not being depreciated ...........................................................................................................................
Capital assets, net of accumulated depreciation......................................................................................................
Total noncurrent assets .................................................................................................................................................
Total assets ....................................................................................................................................................................
Deferred losses on bond refunding ...............................................................................................................................
.................................................................................................................
.................................................................................................................
.........................................................................
$
NET POSITION
Net investment in capital assets ..........................................................................................................................................
Restricted for nonexpendable purposes:
Scholarships and fellowships ...........................................................................................................................................
Restricted for expendable purposes:
Scholarships and fellowships ...........................................................................................................................................
Research ....................................................................................................................................................................................
Instructional/departmental use .....................................................................................................................................
Loans ........................................................................................................................................................................................
Capital projects.......................................................................................................................................................................
Debt service .............................................................................................................................................................................
Unrestricted..................................................................................................................................................................................
Total net position....................................................................................................................................
~ 28 ~
$
5,816,961
319,679,030
20,544,289
18,438,189
682,455
813,510
47,017
2,356,045
7,494,333
2,598,922
549,438,156
2,639,379
1,145,903
—
—
—
—
—
152,927
—
9,755,170
180,001,069
1,670,927
2,591,301
—
—
—
18,380,429
8,323,293
549,338
154,503,653
708,837,455
1,074,857,465
1,624,295,621
—
—
1,187,002
975,732
1,644,083
3,806,817
13,561,987
2,204,323
40,414,463
42,618,786
$ 1,666,914,407
—
—
—
$ 13,561,987
LIABILITIES
Accounts and retainages payable ...................................................................................................................................
Accrued payroll and related liabilities .........................................................................................................................
Accrued compensated absences and related liabilities ........................................................................................
Accrued interest payable ...................................................................................................................................................
Unearned revenues...............................................................................................................................................................
Bonds payable.........................................................................................................................................................................
Capital leases payable .........................................................................................................................................................
Notes payable ..........................................................................................................................................................................
Deposits .....................................................................................................................................................................................
Funds held for others ..........................................................................................................................................................
Total current liabilities .............................................................................................................................................
Accrued compensated absences and related liabilities ........................................................................................
Funds held for others ..........................................................................................................................................................
Net pension liability .............................................................................................................................................................
Bonds payable.........................................................................................................................................................................
Capital leases payable .........................................................................................................................................................
Notes payable ..........................................................................................................................................................................
Total noncurrent liabilities...........................................................................................................................................
Total liabilities ..............................................................................................................................................................
...................................................................................................................
....................................................................................................................
.....................................................................
176,784,366
Clemson University
Research Foundation
$ 40,079,700
18,209,125
17,429,631
2,989,568
36,586,258
17,308,032
993,179
—
966,288
850,211
135,411,992
$
797,674
—
—
3,839
84,987
—
—
114,287
—
1,674
1,002,461
9,871,369
7,628,989
452,937,239
343,466,494
12,999,899
—
826,903,990
962,315,982
—
—
—
—
—
2,444,958
2,444,958
3,447,419
38,346,672
38,346,672
—
—
$ 1,000,662,654
$ 3,447,419
$680,330,774
58,322,661
$
24,612,899
1,234,592
17,940,574
2,033,655
75,406,913
5,605,283
(199,235,598)
666,251,753
$
1,247,572
—
—
2,597,067
—
—
—
—
6,269,929
$ 10,114,568
CLEMSON UNIVERSITY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
$
‹?H+=H<B
Clemson
University
Description
REVENUES
Operating Revenues::
Student tuition and fees (net of scholarship allowances of $85,019,417) ...............................
Federal grants and contracts........................................................................................................................
State grants and contracts .............................................................................................................................
Local grants and contracts ............................................................................................................................
Nongovernmental grants and contracts..................................................................................................
Sales and services of educational and other activities......................................................................
Sales and services of auxiliary enterprises - pledged for revenue bonds
(net of scholarship allowances of $13,425,943) .............................................................................
Sales and services of auxiliary enterprises - not pledged................................................................
Other operating revenues..............................................................................................................................
Total operating revenues ......................................................................................................................
EXPENSES:
Operating Expenses:
.....................................................................................................
Services and supplies ......................................................................................................................................
Utilities ..................................................................................................................................................................
Depreciation ........................................................................................................................................................
Scholarships and fellowships.......................................................................................................................
Total operating expenses ......................................................................................................................
$ 316,893,164
63,540,063
57,351,862
882,273
11,222,618
20,102,980
Clemson University
Research Foundation
$
—
2,397,987
—
—
107,052
—
103,162,461
25,956,919
38,322,392
637,434,732
—
—
3,709,869
6,214,908
478,991,413
262,955,427
19,783,262
49,316,424
25,410,620
836,457,146
—
6,332,095
113,391
380,139
—
6,825,625
Operating loss.................................................................................................................................................
(199,022,414)
(610,717)
NONOPERATING REVENUES (EXPENSES)
State appropriations ............................................................................................................................................
Federal appropriations .......................................................................................................................................
Gifts and grants ......................................................................................................................................................
Interest income ......................................................................................................................................................
Endowment income .............................................................................................................................................
Interest on capital asset related debt ...........................................................................................................
Other nonoperating revenues ..........................................................................................................................
Gain/loss on disposal of capital assets ........................................................................................................
Refunds to grantors ..............................................................................................................................................
Facilities and administrative remittances to the State ..........................................................................
Net nonoperating revenues .................................................................................................................
106,344,796
11,337,741
33,585,909
669,734
4,086,338
(7,341,336)
339,819
(4,152,574)
(137,110)
(375,223)
144,358,094
—
—
—
12,283
—
(119,634)
524,362
—
—
—
417,011
Income before other revenues, expenses, gains or losses ...........................................................
(54,664,320)
(193,706)
State capital appropriations .............................................................................................................................
Capital grants and gifts .......................................................................................................................................
Additions to permanent endowments .........................................................................................................
Decrease in net position ............................................................................................................................
4,456,874
6,448,318
209,467
(43,549,661)
—
—
—
(193,706)
NET POSITION
Net position, beginning of year as originally stated ...............................................................................
Restatement, Note 21 ......................................................................................................................................
Net position, beginning of year as restated................................................................................................
Net position, end of year .....................................................................................................
1,156,424,610
(446,623,196)
709,801,414
$ 666,251,753
~ 29 ~
10,308,274
—
10,308,274
$ 10,114,568
CLEMSON UNIVERSITY
STATEMENT OF CASH FLOWS
$
‹?H+=H<B
DESCRIPTION
AMOUNT
CASH FLOWS FROM OPERATING ACTIVIES
Payments from customers ................................................................................................................................................................................................................
Grants and contracts ...........................................................................................................................................................................................................................
Payments to suppliers ........................................................................................................................................................................................................................
Payments to employees .....................................................................................................................................................................................................................
.........................................................................................................................................................................................................................
Payments to students .........................................................................................................................................................................................................................
..............................................................................................................................................................................................................
..........................................................................................................................................................................................................
Loans to students .................................................................................................................................................................................................................................
Collection of loans ................................................................................................................................................................................................................................
$ 444,304,438
123,817,997
(260,189,096)
(402,206,344)
(98,381,487)
(37,262,023)
64,954,547
(7,140,780)
(48,851)
1,230,276
Net cash used by operating activities..............................................................................................................................................................................
(170,921,323)
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
State appropriations ...........................................................................................................................................................................................................................
Federal appropriations ......................................................................................................................................................................................................................
Gifts and grants .....................................................................................................................................................................................................................................
!
....................................................................................................................................
106,344,796
13,538,553
67,219,793
187,103,142
CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from capital debt ..............................................................................................................................................................................................................
State capital appropriations ............................................................................................................................................................................................................
Capital grants and gifts received....................................................................................................................................................................................................
Proceeds from sale of property ......................................................................................................................................................................................................
Purchases of capital assets ...............................................................................................................................................................................................................
Principal payments and redemption premiums on long term debt ...............................................................................................................................
Interest and fees .................................................................................................................................................................................................................................. .
214,065,153
3,704,329
4,194,486
187,672
(108,253,054)
(28,963,486)
(6,793,840)
Net cash provided by capital activities ...........................................................................................................................................................................
78,141,260
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments .....................................................................................................................................................................................................................
Proceeds from stock sales ................................................................................................................................................................................................................
!
..........................................................................................................................................................
3,138,419
40,576
3,178,995
Net change in cash ...............................................................................................................................................................................................................................
Cash beginning of year .......................................................................................................................................................................................................................
97,502,075
417,341,751
Cash end of year ............................................................................................................................................................................................
$ 514,843,825
RECONCILIATION OF NET OPERATING REVENUES (EXPENSES) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) ....................................................................................................................................................................................................................
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation expense ...................................................................................................................................................................................................................
Amortization of net pension liability.....................................................................................................................................................................................
Change in asset and liabiliites:
Receivables net................................................................................................................................................................................................................................
Grants and contracts receivable ..............................................................................................................................................................................................
Student loans receivable .............................................................................................................................................................................................................
Prepaid items ...................................................................................................................................................................................................................................
Inventories ........................................................................................................................................................................................................................................
Pooled fringe adjustment ...........................................................................................................................................................................................................
Accounts and retainages payable ............................................................................................................................................................................................
Accrued payroll and related liabilities ..................................................................................................................................................................................
Accrued compensated absences and related liabilities .................................................................................................................................................
Unearned revenue .........................................................................................................................................................................................................................
Deposits held for others ..............................................................................................................................................................................................................
49,316,424
4,246,253
(23,789,081)
187,294
197,009
(1,634,309)
(133,311)
3,148,260
1,760,231
1,019,553
959,000
(2,766,662)
(4,409,570)
.....................................................................................................................................................
$ (170,921,323)
NON-CASH TRANSACTIONS
Increase in fair value of investments ...........................................................................................................................................................................................
Assets acquired through gifts..........................................................................................................................................................................................................
State capital appropriations receivable .....................................................................................................................................................................................
Collection of capital gift receivable ...............................................................................................................................................................................................
$ (4,293,440)
2,379,887
5,571,002
(122,055)
RECONCILIATION OF CASH AND CASH EQUIVALENT BALANCES
Current assets:
Cash and cash equivalents..........................................................................................................................................................................................................
Restricted cash and cash equivalents ....................................................................................................................................................................................
Noncurrent assets ................................................................................................................................................................................................................................
$ (199,022,414)
$ 176,784,366
319,679,030
18,380,429
$ 514,843,825
~ 30 ~
CLEMSON UNIVERSITY FOUNDATION
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF FINANCIAL POSITION
‹?H+=H<B
DESCRIPTION
ASSETS
Cash and cash equivalents.................................................................................................................................................................................
Contributions receivable, net ...........................................................................................................................................................................
Due from related organizations ......................................................................................................................................................................
Investments .............................................................................................................................................................................................................
Investments held for Clemson University ..................................................................................................................................................
Cash surrender value of life insurance ........................................................................................................................................................
Land held for resale .............................................................................................................................................................................................
Land, buildings and equipment, net .............................................................................................................................................................
"
Non-pooled assets, net ...................................................................................................................................................................................
Pooled investments ..........................................................................................................................................................................................
Contributions receivable, net ......................................................................................................................................................................
Other assets .............................................................................................................................................................................................................
Total assets ..........................................................................................................................................................................
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable and accrued liabilities ....................................................................................................................................................
Due to related organizations ............................................................................................................................................................................
Due to others...........................................................................................................................................................................................................
Accrued liability to Clemson University due to net investment appreciation ............................................................................
Note payable to Clemson University .............................................................................................................................................................
Actuarial liability of annuities payable ........................................................................................................................................................
#
.....................................................................................................................................................................
Total liabilities ........................................................................................................................................................................................
AMOUNT
$ 57,357,419
30,911,101
1,564,400
424,059,849
180,001,069
2,025,395
11,900
9,426,093
8,855,958
12,568,412
20,284,787
306,342
$ 747,372,726
$
553,644
271,316
1,000,000
77,081,753
102,919,316
5,232,324
41,709,158
228,767,511
Net Assets:
Unrestricted ........................................................................................................................................................................................................
Temporarily restricted ...................................................................................................................................................................................
Permanently restricted ..................................................................................................................................................................................
Total net assets .......................................................................................................................................................................................
26,986,624
216,312,641
275,305,950
518,605,215
Total liabilities and net assets ......................................................................................................................................
$ 747,372,726
~ 31 ~
CLEMSON UNIVERSITY FOUNDATION
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF ACTIVITIES
$
‹?H+=H<B
DESCRIPTION
REVENUES, GAINS AND OTHER SUPPORT:
Gifts and bequests .......................................................................
Income on investments .............................................................
Net realized and unrealized gains on investments........
Program income ...........................................................................
Other income .................................................................................
Change in value of split-interest agreements ..................
&
.............................................
Total....................................................................................
Net assets released from restrictions..................................
Total revenues, gains and other support ...........
UNRESTRICTED
$ 1,461,125
4,796,883
554,969
1,725,627
2,965,435
41,056
—
11,545,095
24,871,163
36,416,258
EXPENSES:
Program expenses: ......................................................................
Grants to Clemson University............................................
Alumni operations .................................................................
Endowments.............................................................................
Operations .................................................................................
Capital projects........................................................................
Total program expenses .................................................
General and administrative .....................................................
Fundraising.....................................................................................
Total expenses...............................................................
1,515,903
1,499,058
6,288,662
13,738,729
1,784,597
24,826,949
2,099,756
4,952,044
31,878,749
Change in net assets before other changes ...............
4,537,509
OTHER CHANGES:
Contributions to a related entity ...........................................
Transfer to temporarily restricted funds due to
underwater endowments.....................................................
Total other changes ....................................................
Change in net assets.........................................................
Net assets at beginning of year ...................................
Net assets at end of year ...................................
(3,926,268)
5,651
(3,920,617)
616,892
26,369,732
$ 26,986,624
~ 32 ~
TEMPORARILY
RESTRICTED
$ 15,204,815
1,173,722
8,086,752
387,840
1,835
(105,948)
(659,457)
24,089,559
(24,871,163)
(781,604)
—
—
—
—
—
—
—
—
—
(781,604)
—
PERMANENTLY
RESTRICTED
$ 16,220,043
2,611
(47,692)
—
42,965
(385,048)
659,457
16,492,337
—
16,492,337
TOTAL
$ 32,885,983
5,973,216
8,594,029
2,113,467
3,010,235
(449,939)
—
52,126,991
—
52,126,991
—
—
—
—
—
—
—
—
—
1,515,903
1,499,058
6,288,662
13,738,729
1,784,597
24,826,949
2,099,756
4,952,044
31,878,749
16,492,337
20,248,242
—
(3,926,268)
(5,651)
(5,651)
—
—
—
(3,926,268)
(787,255)
217,099,896
$ 216,312,641
16,492,337
258,813,613
$ 275,305,950
16,321,974
502,283,241
$ 518,605,215
CLEMSON UNIVERSITY LAND STEWARDSHIP FOUNDATION
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF FINANCIAL POSITION
‹?H+=H<B
DESCRIPTION
AMOUNT
ASSETS
Cash and cash equivalents ...........................................................................................................
Receivables .........................................................................................................................................
Real estate investments.................................................................................................................
Real estate, net ..................................................................................................................................
! ....................................................................................................................
Loan issue costs, net .......................................................................................................................
Development costs ..........................................................................................................................
Equipment, net..................................................................................................................................
Prepaid expense ...............................................................................................................................
Total assets .............................................................................................................
$ 1,340,683
858,382
36,337,593
11,632,192
13,041,531
88,235
1,335,452
5,854
64,981
$ 64,704,903
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable ........................................................................................................................
Accrued interest payable.........................................................................................................
Deposits held for others ..........................................................................................................
Retainage payable ......................................................................................................................
Unearned revenue ......................................................................................................................
Deferred rent revenue ..............................................................................................................
Due to Clemson University Foundation ............................................................................
Notes payable ...............................................................................................................................
Total liabilities .....................................................................................................................
$ 2,387,671
17,201
26,606
193,272
98,061
3,031,671
20,932,472
14,997,830
41,684,784
Unrestricted net assets .................................................................................................................
Total net assets ....................................................................................................................
23,020,119
23,020,119
Total liabilities and net assets ..........................................................................
$ 64,704,903
~ 33 ~
CLEMSON UNIVERSITY LAND STEWARDSHIP FOUNDATION
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF ACTIVITIES
$
‹?H+=H<B
DESCRIPTION
AMOUNT
REVENUES, GAINS AND OTHER SUPPORT:
Gifts and contributions at fair value ........................................................................................
Rental revenues ................................................................................................................................
!.................................................................................................................................
Federal grant ......................................................................................................................................
Common area fees ...........................................................................................................................
Unrealized gain on investments ................................................................................................
Total revenues and gains
$
185,000
2,437,489
4,466
858,382
531,026
844,475
4,860,838
EXPENSES:
Program expenses:
Administrative and other ........................................................................................................
Greenville One..............................................................................................................................
CU-ICAR campus .........................................................................................................................
Total program expenses .....................................................................................................
Interest expense ..........................................................................................................................
Total expenses ........................................................................................................................
300,744
253,858
1,113,646
1,668,248
456,999
2,125,247
Excess of revenues over expenses .......................................................................................
Unrestricted net assets at beginning of year ..................................................................
...........................................................
2,735,591
20,284,528
$ 23,020,119
~ 34 ~
NOTES TO FINANCIAL STATEMENTS
IPTAY
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF FINANCIAL POSITION
$
‹?H+=H<B
DESCRIPTION
AMOUNT
ASSETS
Cash and cash equivalents ...........................................................................................................
Due from related organizations .................................................................................................
Annual fund receivable net ..........................................................................................................
#
"
Non-pooled assets ......................................................................................................................
Pooled investments ...................................................................................................................
Contributions receivable, net ................................................................................................
Total assets .............................................................................................................
8,510,335
10,257,938
20,284,787
$ 62,842,271
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable and accrued expenses .........................................................................
Due to related organizations .................................................................................................
Total liabilities .....................................................................................................................
$ 45,926
7,481
53,407
Net assets.............................................................................................................................................
Unrestricted ..................................................................................................................................
Temporarily restricted .............................................................................................................
Total net assets ....................................................................................................................
62,579,505
209,359
62,788,864
Total liabilities and net assets ..........................................................................
$ 62,842,271
~ 35 ~
$ 21,300,126
2,043,263
445,822
NOTES TO FINANCIAL STATEMENTS
IPTAY
NON-GOVERNMENTAL DISCRETELY PRESENTED COMPONENT UNIT
STATEMENT OF ACTIVITIES
$
‹?H+=H<B
TEMPORARILY
RESTRICTED
DESCRIPTION
REVENUES, GAINS AND OTHER SUPPORT:
Contributions:
From the public ..........................................................................................
Net realized and unrealized gains on investments...........................
Investment income .........................................................................................
Total
Net assets released from restrictions Satisfaction of purpose restrictions ..................................................
UNRESTRICTED
Total revenues, gains and other support ...................................................
59,205,190
209,359
59,414,549
EXPENSES:
Program services:
Support of Clemson University............................................................
Management and general.......................................................................
Total expenses .......................................................................................
170,775
381,179
551,954
—
—
—
170,775
381,179
551,954
58,653,236
209,359
58,862,595
Contributions of unrestricted net assets from
a related party (Note 7) ...............................................................................
3,926,269
—
3,926,269
Change in net assets .................................................................................
Net assets, beginning of year ................................................................
Net assets, end of year ............................................................
62,579,505
—
$ 62,579,505
209,359
—
$ 209,359
62,788,864
—
$ 62,788,864
$ 58,841,155
125,508
46,434
59,013,097
192,093
Excess of revenues over expenses
~ 36 ~
$ 401,354
98
—
401,452
(192,093)
TOTAL
$ 59,242,509
125,606
46,434
59,414,549
—
NOTES TO FINANCIAL STATEMENTS
NOTE 1.
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Nature of Organization
%
(+
O
@
%
Z
@O
@
@O
- Z
$%
-
O
/%
@%
%
@
O/
@
@%BG(<<G(=H5
/
%
//
Z
Z
@
%
O
%
%
$
!%
%
O@
@
@+-@%
5
(
@O + +
R+
@
O
Reporting Entity
+
@Z
%
JZ%K %
=<HH+ # $
! ,+ +
/
@
/
/
-
@
OZ%
%=DHH+!,
*
#+ /
@
@
/
>
O
+
@
+
O
!
$
J!$K
(( @
O!$
@ O +!$S
//S
+@
+
O!$S
@
#//
O@
@/
/@
O
$
J$K
- /
O $S @ #O $ @
/
-
/ O$
O)/
$&
K
@
V@K
@
VK
R @ @ V K @
/
V K /
-O
$
@
+@
O
$
@@
@
>/
&
$
+<<H#
#++
%+=GD?AO
5
%/
$
J5%$K
+
@
+
development, and investment of real property and related
O 5%$S @ #O5%$
@
/ - /
O5%$
J
@
@KO
5
%/
$
@ @
@ > / &
5
%/
$
+*OO-
<FFG++%=GD??O
!
$
J!$K
@ +
O!$S
@
#O!$
+
+@
/
-/
O
!
$
@ @
@ > /
&!
$
+
<BBZC/
+%<HB+++%=GD??O
*:
@
- O *:S
@
#O*:
~ 37 ~
NOTES TO FINANCIAL STATEMENTS
+
+@
/
-
/
O *: J
@ @KO *: @
@
@
>/
&*:+
*OO-<B=G++%=GD??O
S )=HO
Financial Statement Presentation
>Z%
%=<HH(
=GHH+ $
! ,+ B+ O
+ (/ S
+ @+ + + -+ +
”/O
Use of Estimates
/ >
I
+
@+”/+
”/+
-+
@
O%
@@/
(
-O
O
Basis of Accounting
$ + + / !
$
+ @ + !
$
+ + ( @(
O+S
@
O
@
+
/
+
-
/
@
@O
%
-
/
+
/
/-O
(
@
O
$
J$K+
5
%/
$
J5%$K+ *:
$
%
J$%K +
%
GBF+
)((*,O+
Z%
O )
@
$+5%$+*:S
S O
Cash and Cash Equivalents
/ ‘
>
’
+
@
I+
/%
+
@%
%
S
+
(@%
+
/Q$
O
"%
++
%
S O +
>
O %
O(
@
%
%
+@
%
%
@+
+
+
@O$I
+)=O
%
S
O
%
S>
V /+ Z
$ %
O O
O@
O
@S
O
@
S
@
@O!
+ M
+
M
@O!
@O
@
/O
% %
%
S
@
O$
+
>
(+ > >O$
”/+
>
/
@
>
O$%
S
"
*
@
>
O
~ 38 ~
NOTES TO FINANCIAL STATEMENTS
Receivables
@
-
+
+ R %
%
O
@
@
O
Z
@ $
+
+
+/@
/
@
- S O $
@ $
(
-O
@ @ @
O
@
( /
@O
*
O
$
"
@/
@
<GGG
% 5
/ / (
/@
((/-
O$
+)?O
%
@ $
*I 5
*
+ @O
@
%
%
S
(@
O
Inventories
O
/
IO
/ & +
+ R
+ + + + O
Prepaid Items
,-
@
O$
+
+
+
I+
O
Investments
/Z%%
)O?<+
$
!
,-
*O
JK
+-+
O
Noncurrent Cash and Investments
) /
O
-
O
Other Assets
@ @ +O%O#
C
ŒC
%/
O$
‹?H+=H<A
‹?H+=H<B
(O(
/ @ ‹?H+=H<D
‹?H+=H<EO
Capital Assets
>
I
O
/
@@
%
%
O
+
O–
@
O"
R
@
+
-@/+
-
-@
O
@
/
-YB+HHH
-
@
+@
+ @ + /
+-Y<HH+HHHO!
@
+ -
- YB+HHH+ -
/-/
O
#
(
+
<BAH
@
D =H + >+ O
/
(
O#
-
+/
(
O
Unearned Revenues
-
@ @> O
@
O
~ 39 ~
NOTES TO FINANCIAL STATEMENTS
Deposits
# @
(
+ (
&+
@
I++
O%
/
@
/ @ O
Funds Held for Others
@
$C
+
+
O
@
O@
-
O)
@
$
@*I5
*
O
Internal Service and Auxiliary Enterprise Activities
- J K -
+ >+
+ + +
+@I+
@
O
Compensated Absences
Z
( %
( /I (
S /I/I /
( - <FH
I AB + -
@ O %
+
@
-+@
I
O
@
@
/
O @
@@
@
/ - O
@
(
(
@
@
@
-
O
Noncurrent Liabilities
) @ J<K @ @+ @+ @
/
V
J=K @
@
/@
/-
V
J?K
@
+
@/
+
@
O
Net Pension Liability
$ @+
/ /
+ -+
@ %
!%J%!%K
%
*!%J*!%K
M
%!%S
*!%S
@
@
@
%!%*!%O$+@
J
@K
/
@
/@O
O
(?!>
@B$>?(?
@B$>
# ”/ @
O#
”/
>
@
O$+
@
”/
O
/@
@O
@ - ”/”/O
,@@>
@
”/
O
Net Position
S
/&
Net Investment in Capital Assets: S + @@
O
-@
@@-
+
O
Restricted Net Position - Nonexpendable:)-
@
/
/
+ + @ +
+/
@-
O
Restricted Net Position - Expendable:!-
@
/
@
/ @ -
O
~ 40 ~
NOTES TO FINANCIAL STATEMENTS
Unrestricted Net Position: +
+
-
O @
@
-
O -
+/
@
(
+
O
Q
-
@
+S
-/
/
O
Income Taxes
@ %
%
>-
-%<<BJ<K
!
+
O
! % $
+ !
$
+ 5
%/
$
+ *: >
-
!%BH<JKJ?K
-
-
O
$>?;<
-
/
&
Operating revenues and expenses: -
+ J<K + /
+J=K
-
+ /
+ J?K $
+ +
JAK
O
-
-
+
O
Educational Activities Revenue
!
+
@
+ + @ /
@
+
+
+
@O
S
@+
+I+
+ - + + O @ ‘%
% ,
#
’O
Scholarship Discounts and Allowances
%
+
+
/
+-
O%
/
@/
@ + @
M
I
S
@
O
+
*
+
$
+
S
O-
+
/
O
Adoption of New Accounting Standards
, ‹ ?H+ =H<B+ Z%%
)ODF+Accounting and
!"##!$#%
& '( + //%
%
S @O % @@
”/
”/
@
+
%
/ @ / ‹?H+=H<AO
)F
=<O
Nonoperating revenues and expenses: )
-
+
@+
@ Z% %
)O G+ ! $/ *
)-
@ $
Z
, *
$
+ Z% %
)O ?A+ O
)
- @+
+
O
~ 41 ~
NOTES TO FINANCIAL STATEMENTS
NOTE 2.
CASH AND CASH EQUIVALENTS, DEPOSITS AND INVESTMENTS
%
/+@
/+
%
O
/
@
@IO
/
/@
&
Reconciliation of Deposits and Investments
Statement of Net Position
Cash and cash equivalents:
Current - unrestricted
Current - restricted
Noncurrent - restricted
Investments
Total
Footnotes
Amount
Amount
Cash on hand
Deposits held by State Treasurer
Other deposits
Investments held by State Treasurer
Other investments
$ 176,784,366
319,679,030
18,380,429
2,591,301
Total
$ 517,435,126
$
339,511
514,003,447
500,867
154,439
2,436,862
$ 517,435,126
Deposits Held by State Treasurer
%
/>
%
@
I@
O%
/
O
Q%
+
%
/
@%
%
O
+
+
I%
$
!%
%
O$
‹?H+=H<B+YB+BGH+DA<YB<A+HH?+AAE
@
‘#@%
’
@
@
O
Other Deposits
(/@
@
@
IO
Investments Held by State Treasurer
@%
%
%
/
+
@//
O
+
@O
I/
YGB+GHH
*
I/
YBF+B?G@%
*
/
>
-
O%
@
+
@
>
O
Other Investments
@
O
/
Y=+A?D+FD=
@Q$
+
//
@
O
-
O
——
Y<+DH?+BF<O*
O
@O,
@
O
‹?H+=H<B/
/&
Other Investments
Description
Domestic bond fund
International bond fund
Equity funds
Total other investments
Effective
Fair Value
$
317,190
91,200
2,028,472
$ 2,436,862
~ 42 ~
Maturity
(Years)
Credit
Rating
6.2
8.6
N/A
N/A
N/A
N/A
NOTES TO FINANCIAL STATEMENTS
NOTE 3.
RECEIVABLES
@%
)*
‹?H+=H<B+/
/&
University Receivables
Description
Accounts receivable
Grants and contracts receivable
Notes receivable
Contributions receivable, net
Interest and income receivable
Student loans receivable
Current
$ 20,544,289
18,438,189
—
682,455
813,510
47,017
$ 40,525,460
Noncurrent
—
—
180,001,069
1,670,927
—
8,323,293
$ 189,995,289
$
Total
$ 20,544,289
18,438,189
180,001,069
2,353,382
813,510
8,370,310
$ 230,520,749
@
/
@
YFF=+F==@
-
O%
/
YDGE+HHH+
I
/
Y<AH+?<G+
/
Y?D+<EB+%
/
YA+?=F+
/
YB+HHH
O
@
‹?H+=H<B+//@
&
Accounts Receivable
Description
State capital appropriations
Students/scholarships
Auxiliaries
Computer services
Professional development
Educational programs
Camps
Fees
Other
Amount
$ 5,571,002
5,647,503
6,717,402
393,083
36,840
932,850
11,350
808,610
425,649
$ 20,544,289
Z
@ R+ (
+ O Z
@ ‹ ?H+ =H<B+ /
/@
&
Grants and Contracts Receivable
Description
Sponsored research
Land-grant appropriations
Scholarship programs
Federal
$ 13,271,499
1,060,192
773,750
State
$ 346,133
—
—
Local
$ 83,597
—
—
$ 15,105,441
$ 346,133
$ 83,597
~ 43 ~
Nongovernmental
$ 2,903,018
—
—
$ 2,903,018
Total
$ 16,604,247
1,060,192
773,750
$ 18,438,189
NOTES TO FINANCIAL STATEMENTS
@
@
O@
@
@
+
(
/
@O@
@
/
@YAFD+FHF
/
@Y??<+<HAO
*
O
Contributions Receivable
Description
University programs
Current
$ 682,455
$ 682,455
*
+%G<GGF(GG%
%
5
/@
%
BG(<H<(A<HO
/@
(/
-
/%
S
((
/
-
O
+ ‹ ?H+ =H<B+ @$
+
+
Y<FH+HH<+HDGO
Y?B+?BF+<FF+
YDE+BD<+<=E <GGG + O $ $
/@
@
I
/ >
/ />
J
K++/+
/@
O"
@/
Noncurrent
$ 1,670,927
$ 1,670,927
Total
$ 2,353,382
$ 2,353,382
$
O/
@@
@-
/
/ @R -+ / +
"
/ -
/O
@
/
+
"
/
/
O
Q-+
/
@
O
@
O
@/
/
@
@O
-+
O
@
%
%
S
(@
O
~ 44 ~
NOTES TO FINANCIAL STATEMENTS
NOTE 4.
CAPITAL ASSETS
‹?H+=H<B+
/&
Capital Assets
Description
Capital assets not being depreciated:
Land and improvements
Construction in progress*
Total capital assets not being depreciated
$
Increases
32,702,685
23,201,848
55,904,533
$
1,414,205
100,234,679
$ 101,648,884
Decreases
$
—
—
—
Transfers
Ending
Balance
June 30, 2015
$
$
—
(3,049,764)
$ (3,049,764)
34,116,890
120,386,763
154,503,653
Depreciable capital assets:
Utilities systems and other non-structural
improvements
Buildings and improvements
Computer software
Equipment
Vehicles
Total depreciable capital assets at
historical cost
50,663,878
912,229,246
19,080,071
284,683,327
15,508,950
918,485
2,097,285
312,562
18,471,004
1,884,781
—
3,865,484
—
11,493,132
1,555,829
—
1,898,259
1,151,505
1,109,581
(1,109,581)
1,282,165,472
23,684,117
16,914,445
3,049,764
Less accumulated depreciation for:
Utilities systems and other non-structural
improvements
Buildings and improvements
Computer software
Equipment
Vehicles
Total accumulated depreciation
26,483,040
334,811,049
7,007,786
173,474,428
4,629,422
546,405,725
2,143,866
22,239,949
5,487,030
18,884,923
560,159
49,315,927
—
913,376
—
10,111,786
1,549,037
$ 12,574,199
—
—
—
(8,176,880)
8,176,880
—
28,626,906
356,137,622
12,494,816
174,070,685
11,817,424
583,147,453
Depreciable capital assets, net
735,759,747
(25,631,810)
3,049,764
708,837,455
—
$ 863,341,108
Capital assets, net
Beginning
Balance
June 30, 2014
$ 791,664,280
$ 76,017,074
4,340,246
$ 4,340,246
$
51,582,363
912,359,306
20,544,138
292,770,780
14,728,321
1,291,984,908
˜
Y=+A==+BDD
NOTE:Y<FE+DE=
O
NOTE 5.
UNEARNED REVENUES, DEPOSITS AND
FUNDS HELD FOR OTHERS
I
O / /
‹?H+=H<BO
&
@
I O
+
@
+
O
O
$
+
+
@
O
/&
Unearned Revenues
~ 45 ~
Description
Athletic event receipts - fall semester
Sponsored research programs
Academic and other fees
Educational programs
Public service programs
Other
Total unearned revenues
Amount
17,170,830
5,306,440
12,032,235
1,373,189
135,498
568,066
$ 36,586,258
NOTES TO FINANCIAL STATEMENTS
@
+
@
+
O
Deposits
Description
Football guarantees/conference settlement
Student campus card balances
Miscellaneous departmental
Total deposits
Current Amount
$ 519,578
314,615
132,095
$ 966,288
$@
O)
-
Y=HH+HHH
O@
O
*I
@@
O
Funds Held for Others
Current
Amount
$
—
200,000
650,211
$ 850,211
Description
Federal Perkins Loans
Coach's termination settlement
Amounts held in trust
Total funds held for others
~ 46 ~
Noncurrent
Amount
$ 7,628,989
—
—
$ 7,628,989
NOTES TO FINANCIAL STATEMENTS
NOTE 6.
BONDS PAYABLE
‹?H+=H<B+@
@/&
BONDS PAYABLE
Interest Rate
(outstanding)
Maturity
Dates
June 30, 2015
Balance
$ 14,000,000
62,370,000
21,135,000
33,030,000
2.50-4.50%
2.25-5.00%
4.00-5.00%
3.00-5.00%
6/1/2021
3/1/2031
4/1/2018
6/1/2034
$
Revenue Bonds
Bonds dated 12/1/05 (Series 2005)
Bonds dated 2/1/12 (Series 2012)
Bonds dated 5/1/15 (Series 2015)
22,130,000
21,200,000
90,285,000
4.00-4.25%
2.00%
4.00-5.00%
5/1/2020
5/1/2018
5/1/2045
2,755,000
17,820,000
90,285,000
110,860,000
4,445,000
1,565,000
—
!
Bonds dated 12/1/05 (Series 2005)
Bonds dated 2/1/12 (Series 2012)
Bonds dated 12/1/14 (Series 2014A)
Bonds dated 12/1/14 (Series 2014B)
Bonds dated 12/1/14 (Series 2014C)
Bonds dated 5/1/15 (Series 2015)
15,000,000
12,335,000
30,695,000
9,240,000
10,545,000
60,695,000
0.00%
2.00-3.00%
3.00-5.00%
2.00-4.00%
2.00-5.00%
4.00-5.00%
5/1/2025
5/1/2023
5/1/2045
5/1/2027
5/1/2025
5/1/2045
—
7,765,000
30,695,000
9,240,000
10,480,000
60,695,000
118,875,000
$ 340,350,000
20,424,526
$ 360,774,526
13,600,000
1,315,000
—
—
65,000
—
Description
General Obligation Bonds
Bonds dated 4/01/07 (Series 2007B)
Bonds dated 3/01/11 (Series 2011B)
Bonds dated 5/1/12 (Series 2012C)
Bonds dated 6/1/14 (Series 2014B)
Original
Debt
Subtotal bonds payable
Plus unamortized bond premium
Total Bonds Payable
@
OZ
@
%
@
I
@
+
-/%
O
@O
-
!
@
@
S
+
@I++
I
+
‘’
@
O$
!
@S
#
O
@
@
@!%=HHBV
$
!%=HHBO
+
@/
$
!
+ % =HHBO @
@O
‹?H+=H<A/
Y=E+BBE+AGA/
@
‹?H+=H<BY=A+FH<+EABO
>
GH™
O
%=HHB
!!
"
<+=H<E+
@@R
O%=HHB
"
<+=H<E+
@@R
6,605,000
61,570,000
10,695,000
31,745,000
110,615,000
Debt Retired in
Fiscal Year 2015
$
925,000
200,000
3,745,000
1,285,000
$ 27,145,000
1,568,032
$ 28,713,032
O
"
<+=H<D+/
+
+
@
@/
J@
YB+HHHK?H
@+
O
% =HHB $
! "
<+ =H<E @ @R V /+ @ @R "
<+=H<E
+
"
<+=H<D+/
-O
%=HHEZ
@
‹<+=H<F+
@R+/
+
@
@%
+
‹<+=H<E+
-O
% =H<< Z
@
%
"
<+=H==+
@R
+/
+
@@%
+
"
<+ =H=< - O
% =H<= ! ! @"
<
=H<==H<F
@R
O
~ 47 ~
NOTES TO FINANCIAL STATEMENTS
%=H<=$
!!
@"
<
=H<==H=?
@R
O
% =H<= Z
@
%
<
=H<?
=H<F
@R
O
% =H<A Z
@
%
<
=H<B
=H?A
@R
O
#
‹?H+=H<B+
$
!%=H<A
Y?H+DGB+HHHV $
! %=H<A
YG+=AH+HHHV$
!%=H<A
Y<H+BAB+HHHV
$
!%=H<B
YDH+DGB+HHHV
C,
!%
=H<B
YGH+=FB+HHHO
%=H<A$
!/
J<K
+
+ + > JK "
%
J@
KS
QW-
J
*
5IK+
JK # X %
J@
@
K
S
J
K
+/
+I+
@@+
+ + S + +
+
I+
+
+
S+J@K
/
+
JK
J@JK
JK
K
J=K
%=H<AO%=H<A@
@
@
-
O%
=H<A @ @R O
YAAG+=HA@
/
@
@
O
% =H<A -
@ $
!
/ J<K + + + >
"
%
J@
K S
"
%
%J-@-+
++
J=K
%=H<AO%=H<A
@
@
-
O
%=H<A@
@R
OY=FH+DGH@
/
@
/
@
O
%=H<A$
!!
/J<KY<?+DHH+HHH
S $
!
+%=HHB
=H<B=H=B+J‘!’K+
J=K
%=H<AO)
Y<=+<FB+FB< Y=+=D=+EHA @ @
/ %
%=HHBO
YFAF+BBB
@
%=HHB
(O@/
@-
@Y?+EB=+?E?
@
YFBF+E=?O%=H<A
@
@
-
O
%=H<A@
@R
OY<+F?<+HB<@
/
@
@
O
%=H<B$
!/
JK
+
+ > 5R
JK
%=H<BO
%=H<B
@
@
-
O%=H<B@
@R
OY?+AAF+G=B@
/
@
@
O
%=H<BC,
!/
JK
+
+
>
-(
++
+
+
-
+ I/ *R J ‘
*R’KV
JK
%=H<BO%=H<B
@
@
-
O%=H<B@
@R
OYD+BBB+=F=@
/
@
@
O
~ 48 ~
NOTES TO FINANCIAL STATEMENTS
@
@
O>
!+$
!+
Z
@
@
‹?H+=H<B+
/&
Revenue Bonds
Description
Year Ending June 30
2016
2017
2018
2019
2020
2021 through 2025
2026 through 2030
2031 through 2035
2036 through 2040
2041 through 2045
Total Revenue Bonds
Principal
Interest
Total
6,260,000
6,395,000
8,155,000
2,380,000
2,490,000
10,350,000
13,205,000
16,650,000
20,290,000
24,685,000
$ 110,860,000
$ 4,398,562
4,264,562
4,127,563
3,906,363
3,792,463
17,381,500
14,522,500
11,077,900
7,435,800
3,039,200
$ 73,946,413
$ 10,658,562
10,659,562
12,282,563
6,286,363
6,282,463
27,731,500
27,727,500
27,727,900
27,725,800
27,724,200
$ 184,806,413
$
Athletic Facilities Revenue Bonds
Description
Year Ending June 30
2016
2017
2018
2019
2020
2021 through 2025
2026 through 2030
2031 through 2035
2036 through 2040
2041 through 2045
!
Principal
$
Interest
Total
3,300,000
3,415,000
3,540,000
3,680,000
3,830,000
21,890,000
14,405,000
17,675,000
21,315,000
25,825,000
$ 4,726,792
4,627,642
4,489,441
4,346,341
4,197,341
18,614,001
14,611,534
11,332,081
7,693,512
3,175,013
$
8,026,792
8,042,642
8,029,441
8,026,341
8,027,341
40,504,001
29,016,534
29,007,081
29,008,512
29,000,013
$ 118,875,000
$ 77,813,698
$ 196,688,698
General Obligation Bonds
Description
Year Ending June 30
2016
2017
2018
2019
2020
2021 through 2025
2026 through 2030
2031 through 2034
Total General Obligation Bonds
Principal
$
6,180,000
6,480,000
5,095,000
4,800,000
7,490,000
32,375,000
34,450,000
13,745,000
$ 110,615,000
~ 49 ~
Interest
$ 5,054,188
4,755,538
4,444,463
4,204,413
3,975,662
14,886,062
7,272,362
1,022,850
$ 45,615,538
Total
$ 11,234,188
11,235,538
9,539,463
9,004,413
11,465,662
47,261,062
41,722,362
14,767,850
$ 156,230,538
NOTES TO FINANCIAL STATEMENTS
-
@
/
‹?H+=H<B&
Principal Retirements and Interest Expenses
Bond Type
General obligation bonds
Revenue bonds
Athletic facilities revenue bonds
"
#
&
'*
Net Principal
$ 6,155,000
6,010,000
14,980,000
$ 27,145,000
Interest
$ 4,543,847
890,325
1,615,933
$ 7,050,105
NOTE 7.
LEASE OBLIGATIONS
@
J
+@+
K
>
@
>
O
/
O
$
J/
%
)*
K
(
@
-
‹?H+=H<B+/
/&
Capital and Operating Lease Commitments
Capital
Leases
Description
Year Ending June 30:
2016
2017
2018
2019
2020
2021 through 2025
2026 through 2030
2031 through 2035
2036 through 2038
Total minimum lease payments
Less: Interest
"
+/#
$ 1,042,910
1,027,293
722,767
574,408
574,408
2,872,040
2,872,040
2,872,040
1,553,372
14,111,278
118,200
$ 13,993,078
Operating
Leases
$ 1,423,628
867,922
471,175
202,238
157,139
560,660
—
—
—
$ 3,682,762
Capital Leases
5
@
/-=H?FO,-
=H<B/
Y<+HAA+?F?/YGDG+G?</
YEA+AB=/
O/
‹?H+=H<B&
Assets Held Under Capital Lease
Description
Value at Lease
Inception
Buildings
Equipment
$ 14,300,000
2,023,216
$ 16,323,216
Accumulated
Depreciation
$ 1,167,883
661,482
$ 1,829,365
Net
$ 13,132,117
1,361,734
$ 14,493,851
/
M
OZ
@
-
@
-
O
~ 50 ~
NOTES TO FINANCIAL STATEMENTS
@ =H<=+ Y<A+?HH+HHH
O</@
Z /( / @
"
=H<?
-"
=H?FOZ
//Z+%
”
”
-
-O
/ 5
%/
$
+ O J5%$K+ O
@
‹?H+=H<BY<=+GG<+FB<O
@ =H<= 5
Y=+H=?+=<D BOEH? / $
$
5
+ 55+ +
J/@
K
C
)BHHH#
@
$"
"
!
5
@
O5
/@
/O5
Y?G+HA<OFA AF Y?E+HFGOEA /O
@
‹?H+=H<B
Y<+HH<+==EO
Operating Leases
(
@
-
=H<B =H=AO /
/
O @%
%
>
@
@O
@+
/
@
O
@
@
O
<GGD+ / !
$
J!$K+
+
O
- $@
+ =H<FO +
!$Y<=D+HEE
O
#@ =H<H+ / !$+ +
, +%O
+
!$
@
-+@
O
!$Y<GB+<BA
O
‹=H<<+S
/5
%/
$
J5%$K+
+
@
?!
#+Z+%+
!
J(!K
O
- %@ =H<DO +
5%$Y<HE+FFD
O
‹
=H<=+
/5%$+
+
@
?!
#+Z+
%+
(!
O
@
@
-$@
=H<EO
+
5%$Y<DB+BGB
O
%@ =H<<+ /5%$+
+
@
?!
#+Z+%+
(!
O
((
@
-O
+
Y<=+HHH
O
)@ =H<?+ /5%$
@
?!
#+Z+%
(!
O
@
-
O
+
Y<B+HHH
O
‹
=H<A+
/5%$
@
?!
#+Z+%
(!
O
@
-O
+
Y?D+HHH
O
‹=H<A+
/$
@
<<H#
#++%O
-
‹=H=AO
+
$YGE+DDB
O
‹=H<A+
/$
@
<<A#
#++%O
-
‹=H=AO
+
$YA=+BHH
O
+ -Y=??+GBG
((@
O
NOTE 8.
PENSION PLANS
%
*@,
J*,K+ / /
‹ <+ =H<=+ @!#O*,
<<(@
#+
@Z
Z
@
+/
(
(
O
/+
+/
+
/
*,
%
(%
/O*,
$
!J$!K
>
%
!
%S*$O$!@
@
! S I *,S /@ www.peba.sc.gov,
@@
@@
~ 51 ~
NOTES TO FINANCIAL STATEMENTS
>*,+*-<<GDH+@
+%=G=<<(<GDHO
*,
%
+
O
Plan Description
%
!%J%!%K+
(
(@
+/
@‹<+<GAB+
%G(<(=H%
5
/
/
@
+ @ + @O
%
! *
J!*K @
/
+@+
O%
!*
@
O
%
*!%
J*!%K+ (
( @
+/
@‹<+<GD=+
%G(<<(=H%
5
/
/
@
@O
Membership
"@ > @ G %
5
/O@
>
@/O
%!%“Z
+
>
@
O
/ %
Z
@ @ / )@
=H<=
O@
/
@‹<+=H<=
/@O@/
@
‹<+=H<=
@O
%
!* “ @ %!%+/
+@+
/%
Z
@ @ / )@ =H<=
%
!*
J%
!*K+/
@@
O%
!*
@
O*,
@
%
!*@O!
+@
@
O$
+%
!*
O
,
,@%
!*
%!%O
>
@S
/
@ JF K @ JB KO >%!%
@JBOEBK
@@JO<BK+
@+/
@%!%O
*!% “ @ @ *!% @+ @>@+
@
+@+
+ V @ V @#
+
#
‹‹+#
"
C
O*@
R
@
*!%O"
>
*!%
O*!%@+
@
R+
Y=+HHH
<+DHH
/I+
- @ O @ /
@‹<+=H<=+
/@O@
/
@
‹<+=H<=
@O
&
@ G %
5
/O*,
@
@/
/OX@
@+
+
O@
@
@/O
SCRS “
/@/
/
@
DB/=F
O @ / @ @ BB/=B
O
@
/
/
@
!GH>
@S
@S
@
>
GH
O
/
@
@
DH
((
>+O
@
@@
@
/
@
O
@
@‹
<+ <GFG %!% <OF= S
J$K@@
O$
@+$
@ <=
>
AB
O
~ 52 ~
NOTES TO FINANCIAL STATEMENTS
$
@+$
@
=H>
O
@
@@
@/
@
O
/
@
@
‹<O
@‹<
@
O"@/
BB/=B
@@
R‹<
DH‹<
/
=F
O
PORS “
/@/
/
@
BB/=B
O
@/
/
@
BB/=E
O
/
@
@
BB/
+O
@
@@
@/
@
O
@
@/I
/
/
-
R
/
O
/
@
@
‹<O
@‹<
@
O
Contributions
@
@G%
5
/O*,
%!%
*!%
@
@
+@
@/
@
-=OG
@
%!%
B*!%O
@
@@
(
O
@
@@
@
+@
@
>
(
V
+
(
O
!>employee@
=H<A(=H<B
/&
SCRS
,
/
,
PORS
,
,
/
,
State ORP Employee
F™
@
F™
@
Y=<
FOA<™
@
FOA<™
@
F™
@
!>employer@
=H<A(=H<B
/&
SCRS
,
/
,
,
#
PORS
,
,
/
,
,
#
,
#
State ORP
,@
,
#
<HOEB™
@
<HOEB™
@
HO<B™
@
EOFH™
@
<?OH<™
@
<?OH<™
@
HO=H™
@
HO=H™
@
<HOEB™
@
(1)
HO<B™
@
(1) @<HOEB™
@
+B™
@
@@
!*@
@S
/
@%!%O
~ 53 ~
NOTES TO FINANCIAL STATEMENTS
%!%“S
@
@
‹?H+
=H<B+=H<A+
=H<?/&
Fiscal Year
Ended
Rate
Retirement
Contribution
=H<B
=H<A
=H<?
<HOEBH™
<HOABH™
<HOABH™
Y<F+BEH+F?F
<E+B<D+FHG
<E+=FD+HG<
Incidental Death
Rate
Contribution
HO<B™
HO<B™
HO<B™
Y=BG+<=F
=B<+A?E
=AF+<=D
*!%“S
@
@
‹?H+
=H<B+=H<A+
=H<?/&
Fiscal Year
Ended
=H<B
=H<A
=H<?
Retirement
Rate
Contribution
<?OH<H™
YA=F+?<H
<=OAAH™
AHH+<BB
<<OGHH™
?B=+AGF
Incidental Death
Rate
Contribution
HO=H™
YD+BFB
HO=H™
D+A??
HO=H™
B+G=A
Accidental Death
Rate
Contribution
HO=H™
YD+BFB
HO=H™
D+A??
HO=H™
B+G=A
!*“
@!*/
-
YE+HAF+A<DJ-
K
-
YF+ABF+HGG
@O
@
%!% J-
K/YF+<HB+DEF@
Y=<<+AB=
O
Teacher and Employee Retention Incentive
,‹
<+=HH<+%G(<(==<H%
5
/
/@
, ! J,!K *
O ,! @
@
@
/
O
,!+/
+
/@
@//
@
R
,!O
,!+
@
@@O
,!
/‹?H+=H<F
@S
O
Net Pension Liability
‹ ?H+ =H<B @ YAAE+F<E+BHD YB+<<G+E?? %!%
*!%
@+O
@/
‹?H+=H<A+
@ @ / @ ‹ <+
=H<?R/
‹?H+=H<AOS
@/@
RS(
@
R@
+
O‹?H+=H<A+S
%!%
*!%
/=ODH<HE™
HO=DEA?™+//
@
‹?H+=H<?+O
$
‹?H+=H<B+-Y?<+?FD+G<D
YAAE+G<?%!%
*!%+O
(?!>
@B$>?(?@B$>
?
‹?H+=H<B+”/
”/
/&
South Carolina Retirement System
Description
@@>
#@/-
-
)@/R
~ 54 ~
(?!>
@B
of Resources
Y=E+<AE+HGD
<=+DFG+=DA
N
$ 39,839,100
(?@B
of Resources
YN
N
?E+EBA+=F<
$ 37,754,281
NOTES TO FINANCIAL STATEMENTS
!$
Description
@@>
#@/-
-
)@/R
(?!>
@B
of Resources
YAA<+AFH
<?D+D=?
N
$ 577,138
(?@B
of Resources
YN
N
BG=+?G<
$ 592,391
Y=E+<AE+HGD
YAA<+AFH
”/
@
@>
%!%
*!%
++
‹
?H+=H<B/@
@
‹?H+=H<DO
”/
”/
/@
-
/%!%
*!%
+&
Year ended June 30:
SCRS
PORS
2016
2017
2018
2019
2020
$ 5,513,651
5,513,651
5,513,651
8,524,064
—
$ 112,666
112,666
112,666
117,769
—
Actuarial Assumptions and Methods
@@
@
O,-
@+
+
O
@R
/
-
/
@O%
>
-@
(
O
-/
‹?H+=H<H+
-
-@
‹?H+=H<B
O
@*,
‹<+=H<?O
@
@
/
@
‹<+=H<?
+@
‹<+=H<?+R/
+
‹?H+=H<A+
O
/@
@
+Z
@+!+%
O
/
@
‹<+=H<?
%!%
*!%O
Actuarial cost method
&
*R
”
R
SCRS Entry age
PORS Entry age
EOB™
?OB™
=OEB™
<™YBHH
EOB™
AOH™
=OEB™
<™YBHH
(
@SR@
O
@
/
R
@%
R
=HHHO
Former Job Class
Males
Females
,
‹
!*(=HHH "
J/ Q RK@<<H™
!*(=HHH$
J/Q
RK@GB™
Z
,
"@
Z
@
!*(=HHH"
@<HH™
!*(=HHH$
@GH™
*@ %
+ $ @
%
)
Z
!*(=HHH "
J/ RK@<<B™
!*(=HHH $
J/ RK@<<B™
~ 55 ~
NOTES TO FINANCIAL STATEMENTS
(-
@
?H
II
>
=H<=O
(-
@
R
/
/
!%J!%K
@@I
+”@
@”
@-
I
/
,
O
(
@
+
I
+
RO
!%
-
S
O(
%+
/!%
/
(O
-
+
/-”
+@
@!%O$
+(-
@/
-
@
-”
/
@@/O$
+EOBH
@
AOEB
=OEB”
O
Asset Class
%
%#
#$-
$-
C:
I5
Z@
$-
Z@
$-
,"
I#@
Z@
*@,>
Z@
C$J5/
K
*
#@
*
,>
!
,
J
"
IK
Commodities
”
*
Target Asset
Allocation
BOH™
=OH™
?OH™
<?OH™
EOH™
=OH™
AOH™
GOH™
?OH™
DOH™
?<OH™
<HOH™
?=OH™
FOH™
EOH™
GOH™
BOH™
?OH™
100.0%
Expected
Arithmetic Real
Rate of Return
Long Term
Expected
Portfolio Real
Rate of Return
HO?
HOD
HOH<
HOH=
<O<
?OB
=OF
HOHF
HOHE
HO<<
HOF
AO<
EOF
BO<
HOH=
HO=B
=OA=
HOB<
AOH
<HO=
<HO=
BOG
BO<
HO?=
HOE<
HOG=
HO=G
HO<B
BOFF
=OEB
8.63
Discount Rate
@/
EOBOR
”/
@ %!% *!% / @ @
@
%
%
5
/O
+
%S
/
R@
@
I
R@
@O+(-
/
R
@
@O
Sensitivity Analysis
/S
@
EOBH+
/
/
S
@/@/
<
/JDOBHK<
JFOBHK
&
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
System
%!%
*!%
1.00% Decrease (6.50%)
YBEG+BH?+BD<
E+<BA+DGD
Current Discount Rate (7.50%)
YAAE+F<E+BHD
B+<<G+E?A
~ 56 ~
1.00% Increase (8.50%)
Y??E+GB?+BD<
?+A?B+GE?
NOTES TO FINANCIAL STATEMENTS
/
@
%
@
O
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
System
%!%
*!%
1.00% Decrease (6.50%)
Y==+=EG+ABB+?AH
=+DEB+?D=+D?D
Current Discount Rate (7.50%)
Y<E+=<D+DFA+EEH
<+G<A+A=E+A?F
1.00% Increase (8.50%)
Y<=+GG=+FF<+EFE
<+=FA+F<D+EGA
Pension Plan Fiduciary Net Position
@
S
@
/Z%)ODE
%S
O‹?H+=H<A+
@
%!%
*!%
/J
-
K&
System
Total
Pension
Liability
Plan
Fiduciary Net
Position
Employers’
Net Pension
Liability (Asset)
Plan Fiduciary
Net Position as a Percentage
of the Total Pension Liability
SCRS
$ 42,955,205,796
$ 25,738,521,026
$ 17,216,684,770
59.9%
PORS
5,899,529,434
3,985,101,996
1,914,427,438
67.5%
@
@%S
+
S
%S
O
@
/>Z%%DE
%S
>
O
#
@*,
@
$!
>
%!%
*!%/
@
@O
NOTE 9.
POST-EMPLOYMENT BENEFITS OTHER
THAN PENSIONS
Plan Description
/ % 5
/
+%
(
(
@@
%
O @ %
!C
$J%!C$K
%
5(#
@
$
J%5#$K+(
@
( ( @ @
#JK
%
*@,J*,KO
Z
+
@
@
@
O$/@"
=+
=HHF
+
@@
@=B
<HH™
<B=A
BH™O
@ / %
O 5(
#
@J5#K@
+@
+
@O
Funding Policies
% <(<<(E<H % 5
/
<GED+ + > ( ( @ @ @ @Z
@
*,+ -
@ + / @ %
Z
$ O , !"*
@%
@
@%
+BOHH™
=H<B
AOG=™
=H<AO@
@
(
((@
O
-
Y<B+FBH+D=G Y<A+EF?+?HH @ / @ @
‹?H+=H<B
=H<A+
O5#@
S
%
+@+
O
/
Y?O==
‹?H+=H<B
=H<AO
@-
@
@
-
Y<E<+GFH
Y<DD+=H?
‹?H+=H<B
=H<A+O
~ 57 ~
NOTES TO FINANCIAL STATEMENTS
,"
<+=HHF%
@/<GB
@
(
@
@O%!C$
O %
+
+
O%5#$
@O
@
@@
@/
%
*@,“
#+*OO-<<GDH+@
+%
=G=<<(<GDHO
NOTE 10.
DEFERRED COMPENSATION PLANS
%
@%
@O
+-
O
O(
+
!%ABE+AH<JIK+
AH?J@K+
@
$
!%
%
O
%AH<JIK+ABE
AH?J@K
@O%
@
O,
/
/
@/
%
@
O,@
O,
/
/@
>
@
@
O
/!%
‹
<+=HHG+
AH?@
O
+
@
O$
(
@
O
NOTE 11.
LONG-TERM LIABILITIES
5(
@
‹?H+=H<B/
/&
Long-Term Liabilities
Description
July 1, 2014
Additions
Reductions
June 30, 2015
Due Within
One Year
Bonds payable and capital lease obligations:
General obligation bonds
Revenue bonds
Athletic facilities revenue bonds
Subtotal bonds payable
Unamortized revenue bond premium
Total bonds payable
Capital leases payable
Total bonds and notes payable
$ 116,770,000
26,585,000
22,680,000
166,035,000
9,387,405
175,422,405
14,963,009
190,385,414
—
90,285,000
111,175,0000
201,460,,000
12,605,153
214,065,153
—
214,065,153
$ 6,155,000
6,010,000
14,980,000
27,145,000
1,568,032
28,713,032
969,931
29,682,963
$ 110,615,000
110,860,000
118,875,000
340,350,000
20,424,526
360,774,526
13,993,078
374,767,604
$ 6,180,000
6,260,000
3,300,000
15,740,000
1,568,032
17,308,032
993,179
18,301,211
Other liabilities:
Accrued compensated absences
Funds held for others
Net pension liability
Total other liabilities
Total long-term liabilities
26,342,000
7,565,450
446,623,196
480,530,646
$ 670,916,000
17,422,481
63,539
31,834,829
49,320,849
$ 263,386,002
16,463,481
—
25,520,786
41,984,267
$ 71,667,230
27,301,000
7,628,989
452,937,239
487,867,228
$ 862,634,832
17,429,631
—
—
17,429,631
$ 35,730,842
)*
@)DO
)
*5
@)FO@
(
@
‘$’
$
@*I5
O
~ 58 ~
NOTES TO FINANCIAL STATEMENTS
NOTE 12.
CONSTRUCTION COSTS AND COMMITMENTS
Capitalized
@
@
>++
+
>
//@
@
O"
@
M
R/
-@
-=?
YAEG+HFB+<DFYAEG+HFB+<DF
Y?=E+=FD+F?<
R
Y<B<+EGF+??E
R
O
+Y=<=+AD=+BG</
-
‹?H+=H<BO
-‹?H+=H<B+
@
R
YGB+H=F+?=FO-@
@
YDF+=?E+=<F/
/++
+
RO
!
@
R
‹?H+=H<B/
Y=+FAE+=EAO
R
‹?H+=H<B/
@
/
-
O
Construction Costs and Commitments
Project
Advance Plant Technology Lab renovation
Advanced Technical Education Center
Agricultural regulatory software
Central Energy Facility boiler replacement
Clemson Engineering Technologies Lab boiler replacement
Cooper Adobe Studio construction
Core Campus development
CURI Graduate Education Center
Douthit Hills development
Electrical distribution upgrade
Electrical infrastructure maintenance and improvements
Freeman Hall expansion
Greenville One Brand Center IT and furnishings
Greenwood Genetic Center construction
Housing management software
ICAR Advanced Powertrain Lab
Jervey Gym renovation
Kingsmore Stadium addition
Kronos acquisition
Littlejohn Coliseum renovation
Memorial Stadium III construction
Memorial Stadium suites renovation
SAP Business Objects software
SCDOT Annex parking lot renovation
Tiger Band Plaza
Transformer and switch gear replacement
#
#
+
Watt Innovation Center
West campus energy plant construction
Waste Water Treatment Plant upgrade
/
/
/##
#
Approximate
Cost
$
7,236,500
280,000
176,409
3,260,284
150,000
635,075
96,000,000
20,190,000
18,998,656
1,430,000
1,118,674
10,000,000
450,000
6,500,000
225,000
2,300,000
750,000
8,850,000
2,371,584
63,500,000
6,600,000
26,400,000
1,091,198
972,700
615,000
285,000
980,000
30,655,751
10,465,000
4,800,000
$ 327,286,831
Amount
Expended
$
119,352
142,966
176,409
231,167
7,498
427,576
24,223,318
2,714,380
13,711,622
281,675
5,593
7,814,154
413,382
494,230
200,050
391,746
136,746
7,079,928
2,265,515
5,214,268
4,747,833
18,762,244
784,864
86,498
577,423
54,782
274,862
24,105,362
389,999
4,551,321
$ 120,386,763
-
R-
@R
@
‹?H+=H<BO)
-
O
Non-Capitalized
‹?H+=H<B
R//@
/O
R
+
+
M
-
O,
(
R
YF?+FAF+EHDO
YA=+BBH+HB?
YA<+=GF+DB?O
@
/
RY<A+H?A+DHHO!
@(
R
‹?H+=H<B+/
Y???+E<?O
R
+
@+
@+
O
~ 59 ~
NOTES TO FINANCIAL STATEMENTS
NOTE 13.
RELATED PARTIES
/
-
O
S
OC/+S
@/
O
/Z
%
JZ%K % =<HH+ # $
!,+
%=DHH+!,
*
#+
/ / @O-
@
@O
$/
J K
@/
O
Clemson University Real Estate Foundation
!
,
$
+ O+
+
>
O!
,
$
S
@
#O
/
>
O
Clemson University Continuing Education and
Conference Complex Corporation
,
-
J$
K+
@%@+
<GG?++
,
-O $
S
@
#O$
@Y=?<+A<F
@ $
O
Clemson Advancement Foundation for Design and
Building
$
#
J$#K @
+
C
O
$#S
@
O
S
”YDFB+DHH
-
@$#
+
+ - ,O#
!
@
%
Z
+
+//@$#+
+/
@$#O
NOTE 14.
TRANSACTIONS WITH STATE ENTITIES
@Z
@
%
%
O%
/
@O
-@
(
>@Z
$%
Z
@
-
O
@
@
Z
$%<A
AB*
=H<A(<B
O/
@Z
@
‹?H+
=H<B&
State Appropriations
Description
Original appropriation
Employer contributions health and dental insurance allocation
Nonrecurring Capital Reserve Fund for appropriation for agricultural
resources and equipment
Appropriation allocations from the State Commission on Higher Education:
For Academic Endowment Match
For Clemson Agriculture Education Teachers - teacher recruitment
Total state appropriations
~ 60 ~
Educational
and General
Public
Service
Total
$ 68,818,369
736,786
$ 32,580,601
291,049
$ 101,398,970
1,027,835
—
3,000,000
3,000,000
28,233
—
$ 69,583,388
—
889,758
$ 36,761,408
28,233
889,758
$ 106,344,796
NOTES TO FINANCIAL STATEMENTS
@
C,
J‘C,’K
@
O
C,
@
+>
@/
O
%
%
@RO$/
%
+
+
@R
‹?H+=H<B&
Other Amounts Recognized from State Agencies
Operating
Revenues
Description
Received from the Commission on Higher Education (CHE):
LIFE Scholarships
Palmetto Scholarships
Need-Based Grants
HOPE Scholarships
Received from the Department of Education - STEM
Received from the Department of Education - Other
Received from various other state agencies
Received from agencies outside South Carolina
;!
<
review (Proviso 118.16)
Main campus electrical infrastructure maintenance and
improvement (Proviso 118.16)
State lottery funding for critical equipment repair and replacement
Research infrastructure bond proceeds
Capital reserve fund proceeds
#
;#
%
V /+ %
O
/Y?=+DBH+FDF+
Y<<+FBB+BHD + Y=H+EGB+?D= -
O
+ YF+B?< %
Z
$O
%
%
@
Z
V@
I+@
%
V
Z
V
ZO
%
+ + +
+
%
+ / @
+ + O
/ %
O %
/ %
@+
++
O%
/
/I
$ 26,211,709
22,957,656
1,871,457
72,800
1,750,000
990,013
2,963,226
535,001
Capital and
Endowment
Proceeds
Nonoperating
Revenues
$
—
—
—
—
—
—
—
—
$
Total
—
—
—
—
—
—
—
—
$ 26,211,709
22,957,656
1,871,457
72,800
1,750,000
990,013
2,963,226
535,001
—
596,066
—
596,066
—
—
—
—
$ 57,351,862
—
—
—
—
$ 596,066
1,118,674
825,209
2,437,243
75,748
$ 4,456,874
1,118,674
825,209
2,437,243
75,748
$ 62,404,802
, % %
$O =H<B -
@ / @O
NOTE 15.
RISK MANAGEMENT
- I %
IO"
@
IO
/ O
-
O
%
I
O
@
/
@
O
%
@ I
O%
%
%
@
I/&
~ 61 ~
J<K %
@ J, %
KV
NOTES TO FINANCIAL STATEMENTS
J=K /IS
@ R@(
RJ%
$KV
J?K @ @ J %KV
JAK @ (
@ ( @ J
%KO
,
%
S(
O @ @%
(
-
O
%
S
!$J!$K/+
I+
/
+
+
M&
J<K +
+
V
J=K !
++
>V
J?K " + + /
J
KV
JAK V
JBK V
JDK )
V
JEK "
O
!$ ( @
+@
+
@
@+
@
O+
!$
@
O!
+@!$
@O !$ O!$S
O
%
%
SC
#
@
$
!$O
@
@
O
Y<+HHH+HHH O /&
J<K IV
J=K $M
V
J?K +
V
JAK +*$
Y=BH+HHH @ @O  * $
+ + $
*M,+ $
$+ $
%
$
*R"
"
Œ
%
Y=+HHH+HHH@O
-
-@
@
-
O
I
@+ %
O
-+
@
‹?H+=H<B+@
>Z%%
S)O<H
)O?H+
/
@
@
@
@
@
@
@@‹?H+=H<B+
@
@O
S + - I + + /
@ S O
$+
- @
@
(O
@O
NOTE 16.
CONTINGENCIES AND LITIGATION
@ /
/
@
/
O
+
+I
-
+
-
O+
@
@
O
@ =H<B
@R
-
@
O
+
+
+/
@
@@@
/
O+
@O
/
J
K
@ % #
!
J!K ) O %#J%#K
+)
#
+
O%#
~ 62 ~
NOTES TO FINANCIAL STATEMENTS
/
%
!
=H<AO)
@
O
+
@ @O - %
!
/ @ =H<B+ =H<DOI//
/@
O*
+
O
C/+
+
>
#
+-
*
#
+/
+
+
@%#O
NOTE 17.
OPERATING EXPENSES BY FUNCTION
-@
‹?H+=H<B
/&
Operating Expenses by Function
Description
Instruction
Research
Public Service
Academic Support
Student Services
Institutional Support
Operation and Maintenance
of Plant
Scholarships and Fellowships
Auxiliary Services
Depreciation
Total Operating Expenses
Compensation
and Employee
&
Services
and
Supplies
$
Utilities
Depreciation
Scholarships
and
Fellowships
960,216
1,581,398
1,601,335
1,437,563
340,066
303,522
$
$
$ 191,934,432
91,144,255
42,493,746
37,027,139
23,827,678
31,096,984
$ 34,203,003
45,401,127
21,686,239
9,168,157
13,142,188
10,987,118
14,739,053
54,715,122
7,702,348
19,304
46,708,822
—
68,940
73,583,533
—
$ 478,991,413
$ 262,955,427
—
—
—
—
—
—
Total
384,938
1,271,905
32,409
—
35,082
350
$ 227,482,589
139,398,685
65,813,729
47,632,859
37,345,014
42,387,974
—
—
77,156,523
—
5,856,814
—
—
—
49,316,424
23,684,786
1,150
—
23,773,030
126,150,319
49,316,424
$ 19,783,262
$ 49,316,424
$ 25,410,620
$ 836,457,146
NOTE 18.
DONOR-RESTRICTED ENDOWMENTS
+
/
-
J
K/O
>
@///
@O
/
@
<GGF+/(
-
@
/
@
O$
=H<B+
/
AOH™O‹?H+=H<B+
Y<A+G=E+FHA/+
/
%
)*
O
~ 63 ~
NOTES TO FINANCIAL STATEMENTS
NOTE 19.
DETAILS OF RESTRICTED ASSETS
!
/&
Details of Restricted Assets
Description
Amount
Current:
Cash and cash equivalents:
=>
University administered loans
Payment of maturing debt
Bond proceeds and other amounts restricted for capital projects
Funds held for others
$ 31,408,459
277,760
8,557,506
279,016,445
418,860
$ 319,679,030
<
Cash and cash equivalents:
Endowments
Federal Perkins Loan Program
$ 17,362,862
1,017,567
$ 18,380,429
Student Loans Receivable:
Total Federal Perkins Loan Program
$
NOTE 20.
COMPONENT UNITS
Clemson University Foundation
$
J$K
- /
O
)<+$
@
O
$
@
+@
O
$
I
@
+/+
+ @ @$O
=H<B / @ Y<E+FGA+?HBO$
@ YGAD+GH? @$
O
$
/
/
Y<AH+<DB
=H<BO
,>
@$
YD+=G=
/
%
!+,-
)*O
/$
Y<+<DA+HD=@RO
‹ ?H+ =H<B+ $ -
YF+G<A+BAD@RO
)?+
<GGG
%
8,323,293
5
/
/
(
/@
/%
JI$K/-
O
+
+
+
Y<FH+HH<+HDGO
$
<O=B
S/O$
‹
?H+=H<B+
/
Y=+<BA+FAH+
+
YD+D<A+FDAO
(+YB?F+E<H
@/
$O
$
@
@>
IO
!
O
$ + -
-
+
@
/
O
@
/
I
+/@
@
/
O
$,/
@
(
@
O+
+-
+@
O
/
I
-
O
~ 64 ~
NOTES TO FINANCIAL STATEMENTS
‹?H+=H<B
/&
Investments
Description
Money market funds
Treasury/agency
Mortgage backed securities
Corporate bonds
International bonds
U.S. Equities
Global equities
Commodities
Hedge funds
Private equity
Private real assets
Public real assets
Other
Subtotal - marketable investments
Subordinated note receivable from Clemson
University Real Estate Foundation, Inc.
Total Investments
Amount
$ 23,039,665
28,265,694
7,760,626
8,117,035
881,952
267,745,769
111,797,394
10,003,192
97,255,433
29,628,559
9,079,868
1,177,986
1,876,157
596,629,330
20,000,000
$ 616,629,330
Clemson University Research Foundation
!
$
J!$K
@ +
O!$S
@
#O
)<+!$
@
O
!$+ /
/
O
!
Y<+F<F+DHF!$/@
%
!+ ,-
)*
OZ
@
%
)*YBB<+BGF!$
‹?H+=H<BO
YAAD+DBE !$ @/ / Y?=<+=?< !$ O!$@Y<=B+A=D
@!$O
Clemson University Land Stewardship Foundation
5
%/
$
J5%$K
@
+
development, and investment of real property and related
O 5%$S @ #O
) <+ 5%$ @ O
5%$
@
+@
O
/
@5%$
Z+(!
O + /5%$
Z
//ZO$
‹?H+
=H<B+ Y?BD+EDF /
@ 5%$ Y??D+AF<
(!
O
(
+
+
-
Y<+HD=+DBA
/
5%$Z@O#
+ /
R
YBBG+FE=
Z@O
5%$@Y<FB+AGD
@5%$O
IPTAY
*:
@
-
O*:S
@
#O
) <+ *: @ O
*:
@
+@
O
@‹<+=H<A+*:@
O *+ -(- @ !%+
*:/
%
@
I
@/
O
%
@
I
/
- >
+ + O )
*
‹?H+=H<BY?<+A?B+DGH
YB+AF=+DB= RO # ‹ ?H+ =H<B+ *: @ Y<EH+EEB O
(+Y<+FBA+?HG
@/
*:
@O
NOTE 21.
NEW ACCOUNTING PRONOUNCEMENT
, ‹ ?H+ =H<B+ Z
%
JZ%K%
)ODF+
$
!*“
Z%%
)O=EO
%
@
@ @ >
O
%
%
S
@ % *@ , J*,KO%
>
~ 65 ~
NOTES TO FINANCIAL STATEMENTS
S
@+”/
”/
@+
-@
@O#
Z%)ODF
@)F**
O
/
Z%)ODF
=H<B&
Description
Net investment in capital assets
Restricted for nonexpendable purposes:
Scholarships and Fellowships
Restricted for expendable purposes:
Scholarships and Fellowships
Research
Instructional/departmental use
Loans
Capital projects
Debt service
Unrestricted
Total net postion
June 30, 2014
as originally stated
$ 639,236,201
Net Pension
Liability
June 30, 2014
as restated
$ 639,236,201
58,240,694
58,240,694
37,857,863
1,396,051
25,712,495
1,920,003
111,244,340
6,697,491
274,119,472
37,857,863
1,396,051
25,712,495
1,920,003
111,244,340
6,697,491
(172,503,724)
$ 1,156,424,610
~ 66 ~
(446,623,196)
$ 709,801,414
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE UNIVERSITY'S PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY
South Carolina Retirement System (SCRS)
2015
University’s proportionate share of the net pension liability
2.601067%
2.601067%
University’s proportionate share of the net pension liability
$ 447,817,506
$ 441,495,608
University’s covered employee payroll during the measurement period
$ 169,946,061
$ 167,734,783
263.51%
263.21%
59.92%
56.39%
University’s proportionate share of the net pension liability as a percentage of its covered employee payroll
!
!$
{!$|
2015
2014
University’s proportionate share of the net pension liability
0.26743%
0.26743%
University’s proportionate share of the net pension liability
$ 5,119,733
$ 5,127,588
University’s covered employee payroll during the measurement period
$ 3,226,073
$ 2,973,675
158.70%
172.43%
67.55%
62.98%
University’s proportionate share of the net pension liability as a percentage of its covered employee payroll
2014
!
~ 67 ~
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF UNIVERSITY CONTRIBUTIONS
South Carolina Retirement System (SCRS)
For the Year
Statutorily Required
Contribution
Contributions
Recognized by the
Plan
Contribution
({;|
University’s Covered
Employee Payroll
Contributions as a
Percentage of Covered
Payroll
2015
$ 27,147,096
$ 27,147,096
$ —
$ 175,905,408
14.43%
2014
25,031,158
25,031,158
—
169,946,061
14.73%
2013
24,089,283
24,089,283
—
167,734,783
14.36%
2012
19,221,300
19,221,300
—
156,620,370
12.27%
2011
18,869,713
18,869,713
—
156,495,056
12.06%
2010
19,245,843
19,245,843
—
160,692,060
11.98%
2009
19,549,484
19,549,484
—
163,263,025
11.97%
2008
19,163,400
19,163,400
—
166,239,449
11.53%
2007
23,512,050
23,512,050
—
157,691,542
14.91%
2006
21,637,814
21,637,814
—
160,942,979
13.44%
!$
{!$|
For the Year
Statutorily Required
Contribution
Contributions
Recognized by the
Plan
Contribution
({;|
University’s Covered
Employee Payroll
Contributions as a
Percentage of Covered
Payroll
2015
$ 441,480
$ 441,480
$ —
$ 3,358,977
13.11%
2014
412,997
412,997
—
3,226,073
12.80%
2013
364,346
364,346
—
2,973,675
12.25%
2012
275,212
275,212
—
2,343,277
11.74%
2011
247,568
247,568
—
2,143,665
11.55%
2010
242,692
242,692
—
2,193,276
11.07%
2009
253,222
253,222
—
2,292,453
11.05%
2008
251,269
251,269
—
2,338,698
10.74%
2007
301,212
301,212
—
2,149,958
14.01%
2006
307,234
307,234
—
2,203,999
13.94%
~ 68 ~
Statistical Section
(unaudited)
Statistical Section
This section of the Comprehensive Annual Financial Report provides additional information as a context for
/
@S
%
%
S
O
Contents
Page
Financial Trends
/ S /(@
O
72
Debt Capacity
T
@S
@
S
@
@O
77
Operating Information
These schedules contain service and capital asset data to help the reader understand how the information in
S
O
80
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment
//S
%
S
I
O
86
~ 71 ~
SCHEDULE OF REVENUES BY SOURCE
~ 72 ~
Revenues:
Student tuition and fees
(net of scholarship allowances)
Federal grants and contracts
State grants and contracts
Local grants and contracts
Nongovernmental grants and contracts
Sales and services of educational and
other activities
Sales and services of auxiliary enterprises
(net of scholarship)
Other operating revenues
Total operating revenues
State appropriations
Federal appropriations
Gifts and grants
Interest income
Endowment income
Other nonoperating revenues
Proceeds from the sale of capital assets
Total nonoperating revenues
Total revenues
2014-15
2013-14
2012-13
For the Year Ended June 30,
(amounts expressed in thousands)
2011-12
2010-11
2009-10
2008-09
$ 316,893
63,540
57,352
882
11,223
$ 300,711
62,079
53,189
1,640
11,174
$ 288,778
64,467
51,377
796
9,446
$ 269,671
63,962
46,868
690
8,226
$ 252,924
65,045
50,679
757
6,913
$ 223,036
63,792
48,683
959
8,727
20,104
18,778
17,203
15,845
15,843
129,119
38,322
637,435
106,345
11,338
33,586
670
4,086
340
188
156,553
121,927
34,840
604,338
99,591
10,566
62,951
3,077
23,664
648
376
200,873
114,618
31,372
578,057
92,784
10,948
56,403
1,073
14,744
310
458
176,720
106,181
27,771
539,214
88,780
11,507
59,126
6,948
(1,114)
1,271
636
167,154
$ 793,988
$ 805,211
$ 754,777
$ 706,368
2007-08
2006-07
2005-06
$ 205,488
?@<QX?Z
47,248
872
11,700
$ 188,530
56,165
43,414
799
11,177
$ 176,240
52,318
35,947
851
11,138
$ 166,912
54,641
36,181
1,311
9,435
15,917
16,543
16,268
14,027
14,351
95,096
27,396
514,653
91,917
11,744
68,797
7,752
22,236
502
137
203,085
89,129
28,851
479,094
114,120
11,269
59,473
12,408
10,085
3,192
57
210,604
86,282
21,671
449,009
128,279
12,317
46,872
10,029
(20,283)
1,944
715
179,873
79,159
25,013
420,525
167,224
14,186
44,466
8,462
(7,046)
1,389
0
228,681
77,359
19,206
387,086
150,335
9,667
39,298
6,585
16,003
753
20,061
242,702
71,774
16,438
371,043
134,678
11,338
36,329
3,340
7,804
483
0
193,972
$ 717,738
$ 689,698
$ 629,788
$ 565,015
$ 628,882
$ 649,206
~ 73 ~
Revenues:
Student tuition and fees
(net of scholarship allowances)
Federal grants and contracts
State grants and contracts
Local grants and contracts
Nongovernmental grants and contracts
Sales and services of educational and
other activities
Sales and services of auxiliary
enterprises (net of scholarship
allowances)
Other operating revenues
Total operating revenues
State appropriations
Federal appropriations
Gifts and grants
Interest income
Endowment income
Other nonoperating revenues
Proceeds from the sale capital assets
Total nonoperating revenues
Total revenues
For the Year Ended June 30,
(percent of total revenues)
2010-11
2009-10
2008-09
2014-15
2013-14
2012-13
2011-12
40.0%
8.0%
7.2%
0.1%
1.4%
37.4%
7.7%
6.6%
0.2%
1.4%
38.2%
8.5%
6.8%
0.1%
1.3%
38.2%
9.1%
6.6%
0.1%
1.2%
35.2%
9.1%
7.1%
0.1%
1.0%
32.3%
9.2%
7.1%
0.1%
1.3%
2.5%
2.3%
2.3%
2.2%
2.2%
16.3%
4.8%
80.3%
13.5%
1.4%
4.2%
0.1%
0.5%
0.0%
0.0%
19.7%
15.1%
4.3%
75.0%
12.5%
1.3%
7.8%
0.4%
2.9%
0.1%
0.0%
25.0%
15.2%
4.2%
76.6%
12.3%
1.5%
7.4%
0.1%
2.0%
0.0%
0.1%
23.4%
15.0%
3.9%
76.3%
12.6%
1.6%
8.4%
1.0%
(0.2)%
0.2%
0.1%
23.7%
100.0%
100.0%
100.0%
100.0%
Source:
$
!O
2007-08
2006-07
2005-06
32.7%
9.4%
7.5%
0.1%
1.9%
29.0%
8.7%
6.7%
0.1%
1.7%
28.0%
8.3%
5.7%
0.1%
1.8%
29.5%
9.8%
6.4%
0.2%
1.7%
2.3%
2.6%
2.5%
2.2%
2.5%
13.2%
3.8%
71.7%
12.8%
1.6%
9.6%
1.1%
3.1%
0.1%
0.0%
28.3%
12.9%
4.2%
69.4%
16.5%
1.6%
8.6%
1.8%
1.5%
0.5%
0.1%
30.6%
13.7%
3.4%
71.3%
20.4%
2.0%
7.5%
1.6%
(3.2)%
0.3%
0.1%
28.7%
12.2%
3.9%
64.8%
25.8%
2.2%
6.8%
1.3%
(1.1)%
0.2%
0.0%
35.2%
12.4%
3.0%
61.5%
23.9%
1.5%
6.3%
1.0%
2.5%
0.1%
3.2%
38.5%
12.7%
2.9%
65.7%
23.8%
2.1%
6.3%
0.6%
1.4%
0.1%
0.0%
34.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
SCHEDULE OF EXPENSES BY USE
Expenses:
Services and supplies
Utilities
Depreciation
Scholarships and fellowships
Total operating expenses
Interest on capital asset related debt
Loss on disposal of capital assets
Refunds to grantors
Facilities and administrative
remittances to the State
Total nonoperating expenses
Total expenses
For the Year ended June 30,
(amounts expressed in thousands)
2011-12
2010-11
2009-10
2008-09
2013-14
2012-13
$ 478,991
262,955
19,783
49,316
25,411
836,456
7,341
4,343
137
$ 444,913
243,893
20,344
42,974
23,846
775,970
5,512
(1,200)
178
$ 419,665
219,962
17,961
32,715
26,380
716,683
5,875
254
515
$ 384,703
198,747
16,946
37,162
20,942
658,500
5,799
2,255
381
$ 382,789
182,049
17,013
35,009
23,402
640,262
6,034
791
296
$ 385,519
174,958
17,733
35,164
9,175
622,549
5,799
464
95
$ 394,708
158,556
19,376
33,364
13,382
619,386
6,637
802
213
$ 402,601
174,642
17,951
32,697
10,845
638,736
7,196
443
386
$ 366,732
148,409
16,483
29,946
6,794
568,364
7,211
744
697
$ 341,740
140,594
13,884
25,829
6,319
528,366
7,014
686
182
375
12,196
$ 848,652
413
4,903
$ 780,873
339
6,983
$ 723,666
386
8,821
$ 667,321
450
7,571
$ 647,833
185
6,543
$ 629,092
608
8,260
$ 627,646
710
8,735
$ 647,471
644
9,296
$ 577,660
347
8,229
$ 536,595
2009-10
2008-09
2007-08
2006-07
2005-06
~ 74 ~
2014-15
2007-08
2006-07
2005-06
For the Year Ended June 30,
(percent of total expenses)
Expenses:
Services and supplies
Utilities
Depreciation
Scholarships and fellowships
Total operating expenses
Interest on capital asset related debt
Loss on disposal of capital assets
Refunds to grantors
Facilities and administrative
remittances to the State
Total nonoperating expenses
Total expenses
2014-15
2013-14
2012-13
2011-12
2010-11
56.5%
31.0%
2.3%
5.8%
3.0%
98.6%
0.9%
0.5%
0.0%
57.0%
31.2%
2.6%
5.5%
3.1%
99.4%
0.7%
-0.2%
0.0%
58.0%
30.4%
2.5%
4.5%
3.7%
99.1%
0.8%
0.0%
0.1%
57.6%
29.8%
2.5%
5.6%
3.1%
98.6%
0.9%
0.3%
0.1%
59.2%
28.1%
2.6%
5.4%
3.6%
98.9%
0.9%
0.1%
0.0%
61.3%
27.8%
2.8%
5.6%
1.5%
99.0%
0.9%
0.1%
0.0%
62.9%
25.3%
3.1%
5.3%
2.1%
98.7%
1.1%
0.1%
0.0%
62.2%
27.0%
2.8%
5.0%
1.6%
98.6%
1.1%
0.1%
0.1%
63.5%
25.7%
2.9%
5.2%
1.2%
98.5%
1.2%
0.1%
0.1%
63.7%
26.2%
2.6%
4.8%
1.2%
98.5%
1.3%
0.1%
0.0%
0.0%
1.4%
100.0%
0.1%
0.6%
100.0%
0.0%
0.9%
100.0%
0.1%
1.4%
100.0%
0.1%
1.1%
100.0%
0.0%
1.0%
100.0%
0.1%
1.3%
100.0%
0.1%
1.4%
100.0%
0.1%
1.5%
100.0%
0.1%
1.5%
100.0%
Source&
$
!O
SCHEDULE OF EXPENSES BY FUNCTION
Expenses:
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Auxiliary enterprises
Depreciation
Interest on capital debt
Loss on disposal of capital assets
Refunds to grantors
Facilities and administrative
remittances to the State
Total expenses
2013-14
2012-13
$ 227,482
139,399
65,814
47,633
37,345
42,388
77,156
23,773
126,150
49,316
7,341
4,343
137
$ 216,977
133,562
63,542
42,231
35,578
38,019
64,116
22,115
116,856
42,974
5,512
-1,200
178
$ 201,731
130,787
59,837
38,926
26,694
34,640
62,754
25,179
103,420
32,715
5,875
254
515
$ 181,146
123,594
57,890
36,715
24,685
28,925
47,505
19,503
101,375
37,162
5,799
2,255
381
$ 178,644
124,837
59,083
35,321
27,282
25,490
42,905
22,143
89,548
35,009
6,034
791
296
$ 175,249
126,972
62,390
37,181
25,316
26,389
37,435
8,124
88,329
35,164
5,799
464
95
$ 173,423
125,623
68,508
35,775
25,189
27,843
35,869
12,488
81,304
33,364
6,637
802
213
$ 176,165
127,427
72,649
38,647
27,150
31,951
48,826
10,006
73,218
32,697
7,196
443
386
$ 159,318
112,141
60,951
43,104
23,607
27,039
36,811
6,165
69,282
29,946
7,211
744
697
$ 144,342
106,608
56,912
38,200
20,899
24,261
39,057
5,956
66,302
25,829
7,014
686
182
375
$ 848,652
413
$ 780,873
339
$ 723,666
386
$ 667,321
450
$ 647,833
185
$ 629,092
608
$ 627,646
710
$ 647,471
644
$ 577,660
347
$ 536,595
2008-09
2007-08
2006-07
2005-06
~ 75 ~
2014-15
For the Year Ended June 30,
(amounts expressed in thousands)
2011-12
2010-11
2009-10
2008-09
2014-15
Expenses:
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Auxiliary enterprises
Depreciation
Interest on capital debt
Loss on disposal of capital assets
Refunds to grantors
Facilities and administrative
remittances to State
Total Expenses
2013-14
2012-13
2011-12
For the Year Ended June 30,
(percent of total expenses)
2010-11
2009-10
2007-08
2006-07
2005-06
26.8%
16.4%
7.8%
5.6%
4.4%
5.0%
9.1%
2.8%
14.9%
5.8%
0.9%
0.5%
0.0%
27.8%
17.1%
8.1%
5.4%
4.6%
4.9%
8.2%
2.8%
15.0%
5.5%
0.7%
(0.2)%
0.0%
27.8%
18.1%
8.3%
5.4%
3.7%
4.8%
8.7%
3.5%
14.3%
4.5%
0.8%
0.0%
0.1%
27.1%
18.5%
8.7%
5.5%
3.7%
4.3%
7.1%
2.9%
15.2%
5.6%
0.9%
0.3%
0.1%
27.7%
19.3%
9.1%
5.5%
4.2%
3.9%
6.6%
3.4%
13.8%
5.4%
0.9%
0.1%
0.0%
27.9%
20.2%
9.9%
5.9%
4.0%
4.2%
6.0%
1.3%
14.0%
5.6%
0.9%
0.1%
0.0%
27.7%
20.0%
10.9%
5.7%
4.0%
4.4%
5.7%
2.0%
13.0%
5.3%
1.1%
0.1%
0.0%
27.2%
19.7%
11.2%
6.0%
4.2%
4.9%
7.5%
1.6%
11.3%
5.0%
1.1%
0.1%
0.1%
27.5%
19.4%
10.6%
7.5%
4.1%
4.7%
6.4%
1.1%
12.0%
5.2%
1.2%
0.1%
0.1%
26.9%
19.9%
10.6%
7.1%
3.9%
4.5%
7.3%
1.1%
12.4%
4.8%
1.3%
0.1%
0.0%
0.0%
100.0%
0.1%
100.0%
0.0%
100.0%
0.1%
100.0%
0.1%
100.0%
0.0%
100.0%
0.1%
100.0%
0.1%
100.0%
0.1%
100.0%
0.1%
100.0%
Source&
$
!O
SCHEDULE OF NET POSITION AND CHANGES IN NET POSITION
For the Fiscal Year
(amounts expressed in thousands)
2014-15
Total revenues (from schedule
of revenues by source)
Total expenses (from schedule
of expenses by use and function)
Income before other revenues,
expenses, gains or losses
State capital appropriations
Capital grants and gifts
Additions to permanent endowments
Total changes in net position
Net position, beginning
Net position, ending
~ 76 ~
Net investment in capital assets
Restricted - expendable
Restricted - nonexpendable
Unrestricted
Total
$ 793,988
2013-14
$
805,211
2012-13
$ 754,777
$
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
706,368
$ 717,738
$ 689,698
$ 628,882
$ 649,206
$ 629,788
$ 565,015
(848,652)
(1,227,496)
(54,664)
4,457
6,448
209
(43,550)
709,802
$ 666,252
(422,285)
9,397
6,198
123
(406,567)
1,116,369
$ 709,802
31,111
9,612
21,945
2,710
65,378
1,050,991
$ 1,116,369
39,047
9,468
28,350
4,259
81,124
969,867
$ 1,050,991
69,905
6,643
38,376
2,765
117,689
852,178
$ 969,867
60,606
3,736
31,148
11,846
107,336
744,842
$ 852,178
1,236
6,986
13,059
2,491
23,772
721,070
$ 744,842
1,735
19,501
3,998
5,898
31,132
689,938
$ 721,070
52,128
44,149
25,563
1,839
123,679
566,259
$ 689,938
28,420
19,938
2,727
7,508
58,593
507,666
$ 566,259
$ 680,331
126,834
58,323
(199,236)
$ 666,252
$
$
$
$ 462,861
221,593
50,959
234,454
$ 969,867
$ 483,924
147,714
47,853
172,687
$ 852,178
$ 456,106
127,686
35,785
125,265
$ 744,842
$ 429,669
104,065
33,916
153,420
$ 721,070
$ 390,891
83,801
28,291
186,955
$ 689,938
$ 315,987
61,853
26,184
162,235
$ 566,259
639,236
184,828
58,241
(172,503)
$ 709,802
Source:
$
!O
(723,666)
2011-12
604,854
192,765
57,880
260,870
$ 1,116,369
(667,321)
535,281
201,484
55,045
259,181
$ 1,050,991
(647,833)
(629,092)
(627,646)
(647,471)
(577,660)
(536,595)
SCHEDULE OF RATIOS OF OUTSTANDING DEBT
For the Fiscal Year
(amounts expressed in thousands except for outstanding debt per student)
2014-15
$ 110,615
—
110,860
118,875
340,350
20,425
360,775
—
13,993
$ 374,768
2013-14
$ 116,770
—
26,585
22,680
166,035
9,387
175,422
—
14,963
$ 190,385
2012-13
$ 88,420
—
32,350
24,150
144,920
7,145
152,065
150
15,911
$ 168,126
2011-12
$ 93,075
—
37,620
25,600
156,295
8,078
164,373
475
—
$ 164,848
2010-11
$ 99,610
—
42,090
30,045
171,745
4,954
176,699
964
—
$ 177,663
2009-10
$ 41,550
820
46,900
31,770
121,040
1,301
122,341
1,256
430
$ 124,027
2008-09
$ 45,685
1,610
51,490
33,410
132,195
1,442
133,637
1,394
873
$ 135,904
2007-08
$ 49,660
2,360
55,875
34,975
142,870
1,583
144,453
1,876
1,285
$ 147,614
2006-07
$ 53,475
3,080
60,060
36,465
153,080
1,725
154,805
2,335
1,920
$ 159,060
2005-06
$ 43,655
3,770
64,060
37,685
149,170
1,866
151,036
2,771
3,143
$ 156,950
Full-time equivalent students
20,823
20,202
19,800
18,980
18,417
18,237
17,367
16,250
16,226
16,043
Outstanding debt per student
$ 17,998
General Obligation Bonds
Plant Improvement Bonds
Revenue Bonds
Athletic Facilities Revenue Bonds
Subtotal bonds payable
Unamortized bond premiums
Total bonds payable
Notes Payable
Capital Lease Obligations
Total outstanding debt
~ 77 ~
$
9,424
$
8,491
$
8,685
$
9,647
$
6,801
$
7,825
Note: @
(>
J
FH)O
Source: $
!+
!
$
9,084
$
9,803
$
9,782
SCHEDULE OF BOND COVERAGE
Last Ten Fiscal Years
(amounts in thousands)
General Obligation Bonds
Fiscal Year
Ended June 30
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Tuition and
Matriculation
Fees
$ 29,579
27,487
24,703
22,440
21,028
20,493
19,607
15,534
11,941
8,733
Debt Service Requirements
Principal
Interest
Total
$ 6,155
$ 4,544
$ 10,699
4,680
3,484
8,164
4,655
3,823
8,478
4,690
3,438
8,128
4,310
2,746
7,056
4,135
1,845
5,980
3,975
2,006
5,981
3,815
2,158
5,973
4,180
1,876
6,056
2,950
1,836
4,786
Coverage
Ratio
2.76
3.37
2.91
2.76
2.98
3.43
3.28
2.60
1.97
1.82
Net Revenue
Available for
Debt Service
$ 19,986
20 439
20,219
18,830
17,306
17,557
14,569
16,130
14,761
13,149
Debt Service Requirements
Principal
Interest
Total
$ 6,010
$ 890
$ 6,900
5,765
691
6,456
5,270
1,137
6,407
5,320
1,968
7,288
4,810
1,875
6,685
4,590
2,293
6,883
4,385
2,816
7,201
4,185
3,016
7,201
4,000
3,204
7,204
3,505
3,233
6,738
Coverage
Ratio
2.90
3.17
3.16
2.58
2.59
2.55
2.02
2.24
2.05
1.95
~ 78 ~
Total Revenue
Available for
Debt Service
$ 29,579
27,487
24,703
22,440
21,028
20,493
19,607
15,534
11,941
8,733
Revenue Bonds
Fiscal Year
Ended June 30
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Revenues
$ 58,653
56,749
55,452
50,466
49,363
49,943
44,795
43,043
41,597
39,855
Operating
Expenses
$ 38,667
36,310
35,233
31,636
32,057
32,386
30,226
26,913
26,836
26,706
Athletic Facilities Revenue Bonds
Fiscal Year
Ended June 30
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Athletic
Revenues
$ 85,185
82,087
76,099
73,151
56,551
53,175
57,228
55,140
51,674
42,877
Athletic
Operating
Expenses
$ 77,052
72,762
65,588
66,988
54,441
51,474
52,751
48,455
43,364
39,059
Net Athletic
Revenues
$ 8,133
9,325
10,511
6,163
2,110
1,701
4,477
6,685
8,310
3,818
Admissions
Fee
$ 2,046
667
2,031
2,015
1,980
1,883
1,915
2,062
2,221
2,057
Total Revenue
Available for
Debt Service
$ 10,179
9,992
12,542
8,178
4,090
3,584
6,392
8,747
10,531
5,875
Debt Service Requirements
Principal
Interest
Total
$ 1,380
$ 1,616
$ 2,996
1,470
802
2,272
1,450
953
2,403
975
1,054
2,029
1,725
1,392
3,117
1,640
1,460
3,100
1,565
1,524
3,089
1,490
1,585
3,075
1,220
1,635
2,855
1,155
1,404
2,559
~ 79 ~
Note: @
@&+
+@I+
IO
Source:
$
!
Coverage
Ratio
3.40
4.40
5.22
4.03
1.31
1.16
2.07
2.84
3.69
2.30
ADMISSIONS, ENROLLMENT AND DEGREE STATISTICS
Last Ten Academic Years
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
51.5%
32.5%
1,252
611
641
978
57.2%
30.9%
1,246
609
637
971
57.9%
32.3%
1,246
610
636
969
60.0%
28.7%
1,229
599
630
972
57.7%
31.0%
1,231
599
632
979
62.8%
33.1%
1,225
597
628
982
53.8%
35.0%
1,227
597
630
985
50.2%
38.6%
1,221
595
626
984
54.7%
40.2%
1,217
592
625
985
57.4%
40.6%
1,225
600
625
993
2012-13
2011-12
2010-11
2009-10
12,463
7,154
2,903
2013-14
12,784
6,990
2,812
10,224
3,383
2014-15
Enrolled
14,254
7,154
2,762
9,724
3,016
16,282
16,865
17,016
18,500
18,604
10,215
2,933
5,000
10,706
3,463
10,000
10,645
3,289
15,000
20,757
20,000
10,692
3,475
~ 80 ~
Admissions —
Freshman
Applied,
Accepted and
Enrolled
Accepted
15,542
Applications
25,000
8,355
2,923
Admissions-Freshman
Accepted as a percentage of applications
Enrolled as a percentage of accepted
SAT scores-total
Verbal
Math
South Carolina average SAT score-total
2007-08
2006-07
2005-06
0
Enrollment
Undergraduate and graduate FTE
Undergraduate and graduate headcount
Percentage of men
Percentage of women
Percentage of black
Percentage of white
Percentage of other
2008-09
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
20,823
21,857
53.5%
46.5%
6.2%
77.2%
16.6%
20,202
21,303
54.3%
45.7%
6.0%
76.6%
17.4%
19,800
20,768
53.9%
46.1%
6.1%
78.1%
15.8%
18,980
19,914
54.3%
45.7%
6.1%
78.2%
15.7%
18,417
19,453
54.3%
45.7%
6.1%
78.3%
15.6%
18,237
19,111
54.2%
45.8%
6.7%
78.0%
15.3%
17,367
18,317
53.9%
46.1%
6.8%
77.2%
16.0%
16,250
17,585
54.0%
46.0%
6.9%
78.4%
14.7%
16,226
17,309
53.8%
46.2%
6.6%
78.8%
14.6%
16,043
17,165
54.5%
45.5%
6.7%
78.8%
14.5%
8,453
1,207
2,928
1,241
2,924
1,277
3,028
2012-13
1,186
3,278
2013-14
3,137
1,272
2014-15
1,215
3,709
1,270
2,000
3,634
4,000
1,347
6,000
13,527
9,497
9,307
8,088
8,000
9,354
8,002
7,811
2,483
9,864
1,155
10,368
8,743
13,638
8,890
2,526
10,563
Women
1,145
10,808
9,106
13,787
9,563
15,239
11,205
2,591
10,000
11,574
9,729
Men
14,148
10,160
Other
15,562
11,697
12,000
16,218
14,000
16,324
16,876
16,000
Enrollment —
Undergraduate
and Graduate
Headcount
White
14,910
Black
18,000
-
3,755
1,189
211
2010-11
2009-10
2008-09
2007-08
2006-07
2011
2010
2009
2008
2007
2006
2005
3,449
1,131
208
3,314
983
203
3,416
1,002
176
3,255
794
173
3,072
850
151
2,953
799
139
2,934
868
139
2,941
917
122
˜"
#@
O
˜˜"
/
O
2,000
Doctorate
2,941
2,953
3,072
2,500
3,255
3,449
3,755
3,000
3,747
3,500
Masters
2,934
Baccalaureate
4,000
917
122
868
139
799
139
850
151
794
173
1,002
176
983
203
1,131
208
1,189
211
500
1,282
217
1,500
1,000
0
2014
2013
2012
2011
2005-06
2012
3,416
3,747
1,282
217
2013
3,314
~ 81 ~
2014
Degrees Earned*
Baccalaureate
Masters**
Doctorate
2011-12
2010
2009
2008
2007
Source: !
J///OOM/@<M@M
@IM
@IOK
2006
2005
UNDERGRADUATE AVERAGE ANNUAL TUITION AND FEES
*5
(Z
5
>
For the Fiscal Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
Institution - Resident
$ 10,200
$ 9,852
$ 9,446
$ 8,698
$ 7,900
$ 6,972
$ 6,500
$ 5,834
$ 5,496
$ 5,278
Clemson University
Auburn University
13,446
13,054
12,774
12,404
11,908
11,078
10,379
9,937
9,400
8,816
Georgia Institute of Technology
11,394
10,650
10,098
9,652
8,716
7,506
6,040
5,642
4,926
4,648
7,731
7,726
7,726
7,486
6,997
6,651
6,360
6,161
6,060
5,634
13,200
12,863
12,623
12,203
11,153
10,880
10,214
9,640
8,793
7,945
Iowa State University
Michigan State University
Mississippi State University
7,140
6,772
6,264
5,805
5,461
5,151
5,151
4,929
4,596
4,312
North Carolina State University
8,296
8,206
7,788
7,018
6,529
5,474
5,274
5,117
4,783
4,338
Purdue University
Texas A & M University - Main Campus
10,002
9,992
9,900
9,478
9,070
8,638
7,750
7,416
7,096
6,458
9,179
8,506
8,506
8,421
8,387
8,177
7,844
7,335
6,966
6,399
University of California - Davis
13,896
13,896
15,257
15,123
13,080
10,405
9,497
8,925
8,323
8,129
Virginia Tech
12,017
11,455
10,923
10,509
9,459
8,605
8,198
7,397
6,973
6,378
~ 82 ~
Undergraduate Tuition and Fees - Resident — FY 2014-15
$14,000
$12,000
$-
Virginia Tech
$12,017
University of California-Davis
$13,896
Texas A & M University-Main
Campus
$9,179
Purdue University
$10,002
North Carolina State
University
$8,296
Mississippi State
University
$7,140
Michigan State University
$13,200
$2,000
Clemson University
$13,446
$4,000
Auburn University
$10,200
$6,000
Iowa State University
$7,731
$8,000
Georgia Institute of Technology
$11,394
$10,000
For the Fiscal Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
Institution - Non Resident
Auburn University
$ 27,384
$ 26,364
$ 22,977
$ 23,290
$ 21,916
$ 19,452
$ 18,260
$ 16,334
$ 15,496
$ 14,878
Clemson University
31,462
30,488
29,700
28,562
27,420
25,388
23,401
21,867
19,824
18,440
Georgia Institute of Technology
30,698
29,954
29,402
27,862
26,926
25,716
25,182
23,366
20,272
18,990
Iowa State University
20,617
20,278
19,838
19,358
18,563
17,871
17,350
16,919
16,554
15,724
Michigan State University
34,965
33,750
32,580
31,148
29,108
27,343
23,500
23,500
21,438
19,697
Mississippi State University
18,478
16,960
15,828
14,670
13,801
13,021
12,503
11,420
10,552
9,772
North Carolina State Univeristy
23,551
21,661
20,953
19,853
19,064
17,959
17,572
17,315
16,981
16,536
Purdue University
28,804
28,794
28,702
27,646
26,622
25,118
23,224
22,224
21,266
19,824
Texas A & M University - Main Campus
26,356
25,126
25,036
23,811
22,817
22,607
22,184
15,675
15,216
14,679
University of California - Davis
36,774
36,774
38,135
38,001
35,959
33,074
30,105
28,545
27,007
25,949
Virginia Tech
28,048
27,211
25,915
24,480
23,217
21,878
20,825
19,775
19,049
17,837
Undergraduate Tuition and Fees - Non Resident — FY 2014-15
$30,000
$-
(+(/
?HAB>
O
Source: QJ
O/OM
K
Virginia Tech
$28,048
University of California-Davis
$36,774
Texas A & M University-Main
Campus
$26,356
Purdue University
$28,804
North Carolina State University
$23,551
Mississippi State
University
$18,478
$5,000
Michigan State University
$34,965
$10,000
Clemson University
$31,462
$15,000
Iowa State University
$20,617
$20,000
Georgia Institute of Technology
$30,698
$25,000
Auburn University
$27,384
~ 83 ~
$35,000
FACULTY AND STAFF STATISTICS
Last Ten Fiscal Years
Numbers are Based on the October 1st Freeze Date from the Clemson University Business System
For the Fiscal Year
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
217
1,171
45.3%
172
1,157
46.7%
196
1,111
46.7%
215
1,110
43.8%
248
1,150
42.3%
238
1,153
42.7%
284
1,205
40.1%
269
1,205
39.5%
274
1,155
42.1%
261
1,104
46.0%
Staff and administrators
with faculty rank
Part-time
Full-time
921
2,591
856
2,542
783
2,475
682
2,388
668
2,486
687
2,657
581
2,839
506
2,834
491
2,738
543
2,711
Total employees
Part-time
Full-time
1,138
3,762
1,028
3,699
979
3,586
897
3,498
916
3,636
925
3,810
865
4,044
775
4,039
765
3,893
804
3,815
18.7
8.4
18.4
8.4
18.7
8.4
17.9
8.3
16.9
7.8
16.8
5.0
15.2
6.5
14.6
6.2
15.0
6.3
15.5
6.3
$ 91,984
$ 89,788
$ 89,474
$ 80,200
$ 78,257
$ 78,038
$ 77,330
$ 76,639
$ 74,045
$ 72,854
Faculty
Part-time
Full-time
Percentage tenured
~ 84 ~
Students per full-time
Faculty
Staff
Average annual faculty salary*
˜$(+
+
J*K
Note:$
+
(
O
Source: !
J///OOM/@<M@M
@IM
@IOK
SCHEDULE OF CAPITAL ASSET INFORMATION
Last Ten Fiscal Years
~ 85 ~
Academic buildings:
Net assignable square feet (in thousands)
Administrative and support buildings:
Net assignable square feet (in thousands)
Laboratories:
Net assignable square feet (in thousands)
Auxiliary and independent operations buildings:
Net assignable square feet (in thousands)
Student housing:
Residence halls
Suites
Apartments
Units available
Units in use
Percent occupancy
Dining facilities:
Locations
Average daily customers
Parking facilities:
Parking spaces available
Parking permits issued to students
Parking permits issued to faculty/staff
Sources:
>
%
#
*
I
For the Fiscal Year
2010-11
2009-10
2014-15
2013-14
2012-13
2011-12
2008-09
2007-08
2006-07
2005-06
1,370,476
1,427,870
1,391,955
1,292,391
1,286,350
1,675,560
1,310,706
1,169,179
1,032,554
1,030,574
534,617
533,047
570,867
529,590
615,539
731,487
630,397
667,120
802,209
802,492
597,540
674,059
604,045
644,171
598,763
986,055
725,166
715,677
711,254
530,723
1,644,622
1,719,202
1,726,207
1,618,671
1,527,397
1,674,427
1,637,796
1,782,291
1,782,291
1,781,931
23
3
4
6,275
6,140
97.8%
23
3
4
6,248
6,113
97.8%
23
3
4
6,162
6,303
102.3%
23
3
4
6,080
5,724
94.1%
23
3
4
6,074
5,845
96.2%
23
3
4
6,145
6,303
102.6%
23
3
4
6,145
5,974
97.2%
23
3
4
6,198
5,923
95.6%
23
3
4
6,215
6,129
98.6%
23
3
4
6,346
6,148
96.9%
17
18,020
17
17,746
17
17,667
17
17,200
17
16,277
17
15,651
16
14,851
16
15,024
16
15,531
15
14,685
12,457
17,188
5,093
12,303
16,007
5,069
12,159
15,547
4,973
12,533
16,294
4,814
11,939
15,379
4,983
12,679
13,292
4,730
12,993
12,555
4,678
12,839
15,358
3,898
13,302
13,086
4,788
13,302
14,891
5,024
!
C
%
*
I%
DEMOGRAPHIC STATISTICS
~ 86 ~
Year
Personal Income
as of
June 30 (a)
Population
at
July 1 (b)
Per
Capita
Income (c)
Average Annual
Employment
Rate (d)
2014
178,485,001,000
4,832,482
$ 36,934
6.6%
2013
169,282,713,000
4,774,839
35,453
7.6%
2012
161,863,730,000
4,723,723
34,266
9.1%
2011
156,230,797,000
4,679,230
33,673
10.3%
2010
149,283,181,000
4,596,958
33,163
11.2%
2009
144,342,563,000
4,561,242
31,799
11.7%
2008
149,324,705,000
4,479,800
31,884
6.9%
2007
142,166,788,000
4,407,709
31,013
5.9%
2006
134,196,693,000
4,330,108
29,767
6.4%
2005
124,392,180,000
4,254,989
28,460
6.7%
(a) Source: O%O
,
(a) Source: O%O
(b) Source: O%
,
(c) Source: O%O#
5
@
Source:%
Z
TEN LARGEST EMPLOYERS
State of South Carolina
5
:
:
*
J5
@
K
2014
2004
Bi-Lo, LLC.
Bi-Lo, Inc.
Blue Cross/Blue Shield of South Carolina
Greenville Hospital System
Greenville Hospital System
Michelin Tire Corporation
Michelin North America, Inc
Palmetto Health Alliance, Inc.
Palmetto Health Alliance, Inc.
School District of Greenville County
School District of Greenville County
U.S. Department of Defense
U. S. Department of Defense
U.S. Postal Service
U.S. Postal Service
University of South Carolina
University of South Carolina
Wal-Mart Associates, Inc.
Wal-Mart Associates, Inc.
Westinghouse Savannah River Company
~ 87 ~
Note: #
+@
@+
@
O
Source: %
#
,
QI
Supplementary Information
to the Financial Statements
(unaudited)
CLEMSON UNIVERSITY
SCHEDULE OF PLEDGED NET REVENUES
AUXILIARY REVENUE BONDS (SERIES 2005 , 2012 AND 2015)
For the year ended June 30, 2015
~ 90 ~
Description
Revenues:
Student meal plans
Food service commissions
Other
Residence halls
Campus vending machines
ATM rental
Contract revenue
Parking permits
Transit fees
Parking citations
Investment income
Total revenues
Expenses:
Salaries
#!
Travel
Contractual services
Repairs
Telecommunications
Heat, light, and power
Water, sewer and garbage
Rents
Supplies and materials
Insurance
University debit card fees
Cable television
Other operating expenses
Capital outlay
Total expenses
Net revenues
Dining
Services
$ 18,427,160
1,813,192
—
—
—
—
—
—
—
—
78,175
20,318,527
330,864
113,152
5,242
12,472,415
387,853
(127)
824,292
146,639
147,485
159,236
31,421
435,174
—
1,530,949
249,781
16,834,376
$ 3,484,151
Vending
Operations
$
—
—
223,525
—
300,000
42,027
125,000
—
—
—
8,792
699,344
Parking
Services
Bookstore
$
—
—
—
—
—
—
1,208,033
—
—
—
1,582
1,209,615
$
—
—
—
—
—
820
64,525
2,280,003
1,207,122
1,170,414
14,170
4,737,054
$
Housing
Total
—
—
44,094
31,540,648
—
—
—
—
—
—
103,665
31,688,407
$ 18,427,160
1,813,192
267,619
31,540,648
300,000
42,847
1,397,558
2,280,003
1,207,122
1,170,414
206,384
58,652,947
—
—
—
—
3,019
1,566
—
—
77
22,790
410
101,847
—
87,210
—
216,919
7,428
2,705
—
—
6,223
—
17,347
—
—
—
—
—
—
85,824
—
119,527
863,016
289,499
18,978
1,500,010
132,427
8,659
61,452
61
41,188
68,582
8,305
350
—
608,072
—
3,600,599
6,169,674
1,764,850
90,566
706,926
575,964
200,625
2,597,698
654,315
16,284
907,305
260,641
59,085
339,103
3,507,618
44,737
17,895,391
7,370,982
2,170,206
114,786
14,679,351
1,105,486
210,723
3,500,789
801,015
205,034
1,157,913
300,777
596,456
339,103
5,819,673
294,518
38,666,812
$ 482,425
$ 1,090,088
$ 1,136,455
$ 13,793,016
$ 19,986,135
CLEMSON UNIVERSITY
SCHEDULE OF PLEDGED NET REVENUES
ATHLETIC FACILITIES REVENUE BONDS (SERIES 2005 , 2012, 2014A, 2014B, 2014C AND 2015)
For the year ended June 30, 2015
Description
Revenues:
Ticket sales
Away game sales and guarantees
Contributions
Direct institutional support
NCAA/Conference distributions including all tournament revenues
Broadcast, television, radio and internet rights
Program sales, concessions, novelty sales and parking
Royalties, advertisements and sponsorships
Endowment and investment income
Other revenue
Total revenues
~ 91 ~
Operating Expenditures:
Athletic student aid
Guarantees
!<
>
<
related entities
Recruiting
Team travel
Equipment, uniforms and supplies
Game expenses
Fund raising, marketing and promotion
Direct facilities, maintenance and rental
Indirect facilities and administrative support
Other operating expenses
Total operating expenditures
Net Revenues
Football
Basketball
$ 19,740,920
300,000
2,930,941
1,159,232
18,071,549
—
1,214,587
593,989
9,296
652,304
44,672,818
$ 1,529,450
—
1,016,567
437,102
4,543,480
—
112,336
200,658
—
—
7,839,593
3,980,386
975,000
8,273,452
1,388,726
520,410
3,415,010
2,755,125
884,961
2,234,218
1,002,689
2,255,091
—
285,162
—
2,906,366
25,552,450
467,033
347,902
1,178,125
260,084
671,010
—
36,443
—
460,686
8,745,429
$ 19,120,368
$ (905,836)
Other
Sports
$
619,402
1,760
4,033,479
2,499,635
104,087
—
78,709
233,779
—
5,882
7,576,733
Non Program
<
—
—
16,069,039
94,778
3,324,922
2,400,000
186,001
4,676,477
301,914
88,975
27,142,106
$ 21,889,772
301,760
24,050,026
4,190,747
26,044,038
2,400,000
1,591,633
5,704,903
311,210
747,161
87,231,250
6,367,880
61,293
4,297,555
1,251,403
—
—
12,988,395
1,556,703
15,986,017
225,834
479,648
2,273,050
835,859
434,101
—
41,650
—
830,794
15,847,664
12,535,430
—
88,549
416,219
—
3,345,775
3,375,188
1,310,357
4,583,821
26,906,742
15,983,422
1,712,511
5,773,942
2,514,851
3,360,202
3,345,775
3,738,443
1,310,357
8,781,667
77,052,285
235,364
$ 10,178,965
$ (8,270,931)
$
Total
$
CLEMSON UNIVERSITY REPORTING ENTITY
COMBINED STATEMENT OF NET/FINANCIAL POSITION
For the year ended June 30, 2015
Clemson
University
Research
Foundation
Clemson
University
Foundation
Clemson
University
Land
Stewardship
Foundation
176,784,366
$ 5,816,961
$ 57,357,419
$ 1,340,683
$ 21,300,126
319,679,030
20,544,289
18,438,189
682,455
813,510
47,017
2,356,045
7,494,333
2,598,922
549,438,156
2,639,379
1,145,903
—
—
—
—
—
152,927
—
9,755,170
—
1,564,400
—
30,911,101
—
—
—
—
—
89,832,920
—
858,382
—
—
—
—
—
64,981
—
2,264,046
—
2,043,263
—
20,730,609
—
—
—
—
—
44,073,998
322,318,409
26,156,237
18,438,189
52,324,165
813,510
47,017
2,356,045
7,712,241
2,598,922
695,364,290
—
(3,514,445)
(551,598)
—
—
—
—
—
—
(4,066,043)
322,318,409
22,641,792
17,886,591
52,324,165
813,510
47,017
2,356,045
7,712,241
2,598,922
691,298,247
202,700,909
26,954,060
18,175,998
40,199,318
1,254,966
113,173
2,222,734
6,551,966
—
519,417,871
180,001,069
—
1,670,927
2,591,301
—
—
—
—
—
—
180,001,069
—
—
465,769,007
2,025,395
—
13,041,531
—
36,337,593
—
—
—
—
18,768,273
—
360,002,138
13,041,531
1,670,927
523,466,174
2,025,395
(180,001,069)
(13,041,531)
—
(61,709,158)
—
180,001,069
—
1,670,927
461,757,016
2,025,395
175,541,046
—
5,761,349
432,799,633
1,858,611
18,380,429
8,323,293
549,338
—
154,503,653
—
—
1,187,002
—
975,732
—
—
306,342
11,900
8,971,049
—
—
1,423,687
11,632,192
—
—
—
—
—
—
18,380,429
8,323,293
3,466,369
11,644,092
164,450,434
18,380,429
8,323,293
3,466,369
11,644,092
164,450,434
40,809,683
8,454,146
5,612,157
11,766,861
65,851,314
708,837,455
1,074,857,465
1,644,083
3,806,817
455,044
657,539,806
5,854
62,440,857
—
18,768,273
710,942,436
1,817,413,218
—
(254,751,758)
710,942,436
1,562,661,460
738,139,145
1,486,593,945
1,624,295,621
13,561,987
747,372,726
64,704,903
62,842,271
2,512,777,508
(258,817,801)
2,253,959,707
2,006,011,816
2,204,323
40,414,463
—
—
—
—
—
—
—
—
2,204,323
40,414,463
—
—
2,204,323
40,414,463
1,906,761
—
42,618,786
—
—
—
—
42,618,786
—
42,618,786
1,906,761
$ 1,666,914,407
$ 13,561,987
$ 747,372,726
$ 64,704,903
$ 62,842,271
$ 2,555,396,294
$ 2,296,578,493
$ 2,007,918,577
Clemson
University
Description
~ 92 ~
Assets::
Current Assets:
Cash and cash equivalents
Restricted Assets - Current:
Cash and cash equivalents
Accounts receivable
Grants and contracts receivable
Contributions receivable, net
Interest and income receivable
Student loans receivable
Inventories
Prepaid items
Other current assets
Total current assets
Noncurrent Assets:
Notes receivable
Lease obligation receivable
Contributions receivable, net
Investments
Cash surrender value of life insurance
Restricted Assets - Noncurrent
Cash and cash equivalents
Student loans receivable
Other assets
Real estate held for resale
Capital assets, not being depreciated
Capital assets, net of accumulated
depreciation
Total noncurrent assets
Total assets
<
Deferred losses on bond refunding
resources
$
IPTAY
$
Subtotal
Eliminations
262,599,555
$
—
—
—
—
—
—
$ (258,817,801)
FY15
Total
$
262,599,555
FY14
Total
$
221,244,747
Clemson
University
Description
Liabilities:
Current Liabilities
Accounts and retainages payable
Accrued payroll and related liabilities
Accrued compensated absences and
related liabilities
Accrued interest payable
Unearned revenues
Bonds payable
Capital leases payable
Notes payable
Deposits
Funds held for others
Total current liabilties
~ 93 ~
Noncurrent Liabilities:
Accrued compensated absences and
related liabilities
Due to the University
Funds held for others
Net pension liability
Bonds payable
Capital leases payable
Notes payable
Annuities payable
Total noncurrent liabilities
Total liabilities
<
resources
$
40,079,700
18,209,125
Clemson
University
Research
Foundation
$
797,674
—
Clemson
University
Foundation
$
Clemson
University
Land
Stewardship
Foundation
1,824,960
—
$ 2,580,943
—
IPTAY
$
53,407
—
Subtotal
$
45,336,684
18,209,125
FY15
Total
Eliminations
$
(3,133,571)
—
$
42,203,113
18,209,125
FY14
Total
$
22,828,135
17,193,699
17,429,631
2,989,568
36,586,258
17,308,032
993,179
—
966,288
850,211
135,411,992
—
3,839
84,987
—
—
114,287
1,674
—
1,002,461
—
—
—
—
—
—
—
—
1,824,960
—
17,201
3,129,732
—
—
—
26,606
—
5,754,482
—
—
—
—
—
—
—
—
53,407
17,429,631
3,010,608
39,800,977
17,308,032
993,179
114,287
994,568
850,211
144,047,302
—
—
—
—
(574,408)
—
—
—
(3,707,979)
17,429,631
3,010,608
39,800,977
17,308,032
418,771
114,287
994,568
850,211
140,339,323
17,027,982
1,449,568
43,823,144
14,721,484
395,523
109,500
1,954,030
575,832
120,078,897
9,871,369
—
7,628,989
452,937,239
343,466,494
12,999,899
—
—
826,903,990
—
—
—
—
—
—
2,444,958
—
2,444,958
—
180,001,069
41,709,158
—
—
—
—
5,232,324
226,942,551
—
—
20,932,472
—
—
—
14,997,830
—
35,930,302
—
—
—
—
—
—
—
—
—
9,871,369
180,001,069
70,270,619
452,937,239
343,466,494
12,999,899
17,442,788
5,232,324
1,092,221,801
—
(180,001,069)
(62,641,630)
—
—
(12,467,123)
—
—
(255,109,822)
9,871,369
—
7,628,989
452,937,239
343,466,494
532,776
17,442,788
5,232,324
837,111,979
9,314,018
—
7,565,450
—
160,700,921
951,547
14,479,242
5,527,849
198,539,027
962,315,982
3,447,419
228,767,511
41,684,784
53,407
1,236,269,103
(258,817,801)
977,451,302
318,617,924
38,346,672
—
—
—
—
38,346,672
—
38,346,672
—
38,346,672
—
—
—
—
38,346,672
—
38,346,672
—
$ 1,000,662,654
$ 3,447,419
$ 228,767,511
$ 41,684,784
$
53,407
$ 1,274,615,775
$ (258,817,801)
$ 1,015,797,974
$ 318,617,924
$ 1,247,572
$
$
—
$
—
$
$
$
$
—
—
—
—
—
—
209,359
—
62,579,505
$ 62,788,864
"
Net investment in capital assets
$ 680,330,774
Restricted for non expendable purposes:
58,322,661
Restricted for expendable purposes:
24,612,899
Research
1,234,592
Instructional/departmental use
17,940,574
Loans
2,033,655
Capital projects
75,406,913
Debt service
5,605,283
Unrestricted
(199,235,598)
$ 666,251,753
9,426,093
—
275,305,950
—
—
2,597,067
—
—
—
—
6,269,929
$ 10,114,568
216,312,641
—
—
—
—
—
17,560,531
$ 518,605,215
—
—
—
—
—
—
23,020,119
$ 23,020,119
691,004,439
333,628,611
240,925,540
3,831,659
17,940,574
2,033,655
75,616,272
5,605,283
(89,805,514)
$ 1,280,780,519
—
—
$
—
—
—
—
—
—
—
—
691,004,439
333,628,611
240,925,540
3,831,659
17,940,574
2,033,655
75,616,272
5,605,283
(89,805,514)
$ 1,280,780,519
650,219,769
317,054,307
404,661,273
4,369,534
25,712,495
1,920,003
111,244,340
6,697,491
167,421,441
$ 1,689,300,653
CLEMSON UNIVERSITY REPORTING ENTITY
COMBINED STATEMENT OF REVENUES, EXPENSES, ACTIVITIES AND CHANGES IN NET POSITION
For the year ended June 30, 2015
Description
~ 94 ~
Revenues:
Operating Revenues:
Student tuition and fees (net of
scholarship allowances of
$85,019,417
$
Federal grants and contracts
State grants and contracts
Local grants and contracts
Nongovernmental grants and contracts
Sales and services of educational and
other activities
Sales and services of auxiliary
enterprises - pledged for revenue
bonds (net of scholarship
allowances of $13,425,943)
Sales and services of auxiliary
enterprises - not pledged
Other operating revenues
Total operating revenues
Clemson
University
316,893,164
63,540,063
57,351,862
882,273
11,222,618
Clemson
University
Research
Foundation
Clemson
University
Foundation
$
$
—
2,397,987
—
—
107,052
—
—
Clemson
University
Land
Stewardship
Foundation
$
—
—
858,382
—
—
—
IPTAY
$
—
—
—
—
—
$
Subtotal
Eliminations
316,893,164
66,796,432
57,351,862
882,273
11,329,670
$
—
(1,818,608)
—
—
—
FY15
Total
$
316,893,164
64,977,824
57,351,862
882,273
11,329,670
FY14
Total
$
300,711,230
62,646,235
53,189,169
1,640,203
11,952,084
20,102,980
—
—
—
—
20,102,980
—
20,102,980
18,777,424
103,162,461
—
—
—
—
103,162,461
—
103,162,461
96,334,127
25,956,919
38,322,392,
637,434,732
—
3,709,869
6,214,908
—
5,123,702
5,123,702
—
2,972,981
3,831,363
—
—
—
25,956,919
50,128,944
652,604,705
—
(2,649,419)
(4,468,027)
25,956,919
47,479,525
648,136,678
25,593,222
44,510,124
615,353,818
Expenses:
Operating Expenses:
Services and supplies
Utilities
Depreciation
Scholarships and fellowships
Total operating liabilities
478,991,413
262,955,427
19,783,262
49,316,424
25,410,620
836,457,146
—
6,332,095
113,391
380,139
—
6,825,625
—
31,878,749
—
—
—
31,878,749
—
1,668,248
—
—
—
1,668,248
—
551,954
—
—
—
551,954
478,991,413
303,386,473
19,896,653
49,696,563
25,410,620
877,381,722
1,257,825
(24,957,019)
—
—
—
(23,699,194)
480,249,238
278,429,454
19,896,653
49,696,563
25,410,620
853,682,528
446,124,705
258,930,621
20,523,005
43,389,971
23,845,894
792,814,196
Operating income/(loss)
(199,022,414)
(26,755,047)
2,163,115
(551,954)
(224,777,017)
19,231,167
(205,545,850)
(177,460,378)
(610,717)
Description
Nonoperating Revenues (Expenses):
State appropriations
Federal appropriations
Gifts and grants
Interest income
Endowment income
Interest on capital asset related debt
Other nonoperating revenues
Gain/loss on disposal of capital assets
Refunds to grantorss
Facilities and administrative remittances
to the State
Net nonoperating revenues
Income before other revenues,
expenses, gains or losses
~ 95 ~
State capital appropriations
Capital grants and gifts
Intra-entity contributions
Additions to permanent endowments
Increase in net position
Net Position:
Net position, beginning of year, as
originally stated
Restatement, Note 21
Net position, beginning of year as restated
Net position, end of year
Clemson
University
Land
Stewardship
Foundation
Clemson
University
Research
Foundation
Clemson
University
Foundation
106,344,796
11,337,741
33,585,909
669,734
4,086,338
(7,341,336)
339,819
(4,152,574)
(137,110)
—
—
—
12,283
—
(119,634)
524,362
—
—
—
—
32,885,983
5,973,216
8,144,090
—
—
—
—
—
—
185,000
844,475
—
(456,999)
—
—
—
—
—
59,242,509
46,759
123,281
—
—
—
—
106,344,796
11,337,741
125,899,401
7,548,467
12,353,709
(7,917,969)
864,181
(4,152,574)
(137,110)
—
—
(17,894,305)
—
—
4,267
—
—
—
106,344,796
11,337,741
108,005,096
7,548,467
12,353,709
(7,913,702)
864,181
(4,152,574)
(137,110)
99,591,087
10,566,435
87,202,796
8,710,648
77,145,458
(6,077,516)
647,917
1,576,447
(178,238)
(375,223)
144,358,094
—
417,011
—
47,003,289
—
572,476
—
59,414,549
(375,223)
251,765,419
—
(17,890,038)
(375,223)
233,875,381
(413,207)
278,771,827
(54,664,320)
(193,706)
20,248,242
2,735,591
58,862,595
26,988,402
1,341,129
28,329,531
101,311,449
4,456,874
6,448,318
—
209,467
(43,549,661)
—
—
—
—
(193,706)
—
—
(3,926,268)
—
16,321,974
—
—
—
—
2,735,591
—
—
3,926,269
—
62,788,864
4,456,874
6,448,318
1
209,467
38,103,062
—
(1,341,129)
—
—
—
4,456,874
5,107,189
1
209,467
38,103,062
9,397,423
4,643,350
—
122,973
115,475,195
Clemson
University
1,156,424,610
(446,623,196)
709,801,414
$ 666,251,753
IPTAY
10,308,274
—
10,308,274
502,283,241
—
502,283,241
20,284,528
—
20,284,528
—
—
—
$ 10,114,568
$ 518,605,215
$ 23,020,119
$ 62,788,864
Subtotal
Eliminations
1,689,300,653
(446,623,196)
1,242,677,457
$ 1,280,780,519
—
—
—
$
—
FY15
Total
1,689,300,653
(446,623,196)
1,242,677,457
$ 1,280,780,519
FY14
Total
1,574,638,413
(812,955)
1,573,825,458
$ 1,689,300,653
This Comprehensive Annual Financial Report is also available
/@
http://www.comptroller.clemson.edu
Prepared by:
+,!
#--%
,%./01/'2
3'45/0"1/'2
678950;515"<195#=78950;515"15<<
-3
APPENDIX B
SUMMARY OF CERTAIN PROVISIONS OF BOND RESOLUTION
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX B
SUMMARY OF CERTAIN PROVISIONS OF THE BOND RESOLUTION
AND THE SERIES 2015B RESOLUTION
THE RESOLUTION
The Bond Resolution and the Series 2015B Resolution contain various covenants and security provisions,
some of which are summarized below. Wherever particular provisions of the Bond Resolution or the Series 2015B
Resolution are referred to, such provisions should be considered incorporated by reference as part of the statements
made, and the statements made are qualified in their entirety by such provisions. Reference is made to the Bond
Resolution and the Series 2015B Resolution for a full and complete statement of their respective provisions.
Capitalized terms used in this summary which are not defined below or elsewhere herein shall have the same
meanings as in the Bond Resolution or the Series 2015B Resolution.
The Bond Resolution
Definitions
Among the more significant definitions in the Bond Resolution which are not fully defined elsewhere in
this Official Statement are the following (capitalized terms which are used but not defined therein have the meaning
provided in the Bond Resolution, to which reference is made):
“Accreted Value” shall mean the amounts set forth in or the amounts computed pursuant to a formula set
forth in a Series Resolution authorizing the issuance of Bonds in the form of Capital Appreciation Bonds.
“Additional Funds” shall mean any funds of the University designated and approved and set forth in, or as
may be designated in the future by the Board of Trustees pursuant to the Bond Resolution, in accordance with
Section 59-147-110 of the Enabling Act.
“Annual Budget” shall mean the budget or amended budget for the operation of the Facilities prepared
under the supervision of the Chief Financial Officer as a portion of the budget of the University adopted annually by
the Board of Trustees for the ensuing Fiscal Year of the University.
“Annual Principal and Interest Requirement” shall mean, with respect to any particular Fiscal Year and to a
Series of Bonds Outstanding, an amount equal to the sum of (1) all interest payable on such Series of Bonds during
such period (other than amounts paid from proceeds of the Bonds as accrued interest or interest which has been
capitalized in accordance with the terms of the Bond Resolution), plus (2) any Principal Installments of such Series
of Bonds payable during such Fiscal Year; provided, however, with respect to any Principal Installment (whether
maturing in such particular Fiscal Year or in a subsequent Fiscal Year) of a Series of Partially Amortizing Bonds,
equaling 25% or more of the principal of such Series of Partially Amortizing Bonds, the amount of such Principal
Installment deemed to be payable during any Fiscal Year for purposes of determining Annual Principal and Interest
Requirement shall be computed as if such Principal Installment were amortized from the date of issuance thereof
over a period of twenty (20) years or the actual maturity of such Partially Amortizing Bonds, whichever is greater,
on a level debt service basis at an interest rate equal to the rate borne by such Partially Amortizing Bonds on the date
of calculation, except that if the date of calculation is within twelve (12) months of the actual maturity of such
Partially Amortizing Bonds, the full amount of the Principal Installment payable at maturity (less any sinking fund
established therefor and deposited with the Paying Agent/Trustee for such Bonds) shall be included in such
calculation. For purposes of computing “Annual Principal and Interest Requirement,” the rate of interest used to
determine (1) above shall be a rate per annum equal to (a) with respect to any Series of Bonds which bear interest at
a fixed rate or rates, the rate or rates of interest borne or to be borne by such Bonds, and (b) with respect to any
Series of Variable Rate Bonds, the following methods shall determine the interest rate to be used:
B-1
(i)
the actual rate on the date of calculation, or if the Variable Rate Bonds are not yet Outstanding, the
initial rate (if established and binding),
(ii)
if the Variable Rate Bonds have been Outstanding for at least twelve (12) months, the average rate
over the twelve months immediately preceding the date of calculation (if such average rate exceeds the rate stated in
(i) above); or
(iii)
if the Variable Rate Bonds are not yet Outstanding and the initial rate is not yet established, then
(1) if interest on the Variable Rate Bonds is intended by the University to be excludable from gross income under
the applicable provisions of the Code, the Bond Buyer One Year Note Index (or comparable index if such is no
longer published) published not earlier than one week prior to the sale date, or (2) if interest is not intended to be so
excludable, the interest rate on Government Obligations with comparable maturities; provided, however, that if the
One Year Note Index referred to in (1) above is no longer published, any reasonably equivalent nationally
recognized index published for the periods in question may be selected by the Chief Financial Officer for use in its
stead, and further provided that such rate under this (iii) shall not exceed the maximum rate permitted on the
Variable Rate Bonds;
provided, however, that for purposes of any rate covenant measuring actual debt service coverage during a
test period, Variable Rate Bonds shall be deemed to bear interest at the actual rate or rate per annum applicable
during the test period.
“Authorized Investments” shall mean those investments authorized for investment of State funds under
Section 11-9-660 of the State Code.
“Board of Trustees” shall mean the Board of Trustees of the University or any successor body.
“Bond Counsel” shall mean an attorney or firm of attorneys of recognized standing in the field of law
relating to municipal, state and public agency financing.
“Bond Payment Date” shall mean the dates on which interest on any of the Bonds shall be payable or on
which both principal and interest shall be payable on any of the Bonds, all as set forth in the Series Resolutions
authorizing the issuance of the respective Series of Bonds.
“Bondholder” or “Holder”, or any similar term, when used with reference to the Bonds, shall mean any
person who shall be the registered owner of any Outstanding Bond or in the case of any Bonds issued in bearer form
in accordance with Section 4.08(C) thereof, the holder of any such Bond.
“Bonds” shall mean any indebtedness payable from the Net Revenues and the Additional Funds, issued in
accordance with the provisions of the Enabling Act, the Bond Resolution and a Series Resolution.
“Book-Entry Form” or “Book-Entry System” shall mean, with respect to the Bonds, a form or system, as
applicable, under which (i) the ownership of beneficial interests in such Bonds may be transferred only through a
book-entry, and (ii) physical Bonds in fully registered form are registered only in the name of a Depository or its
nominee. The book-entry maintained by the Depository is the record that identifies the owners of participatory
interests in such Bonds, when subject to the Book-Entry System.
“Business Day” shall mean, except as set forth in a Series Resolution with respect to the Series of Bonds
issued thereunder, any day other than a Saturday, a Sunday or a day on which banking institutions in the State or in
the State of New York are required or authorized by law (including executive orders) to close.
“Capital Appreciation Bonds” shall mean Bonds that bear interest payable only at maturity or payable prior
to maturity only on the redemption dates set forth in the Series Resolution authorizing the issuance of such Bonds
and in the amounts determined by reference to the Accreted Value of such Capital Appreciation Bonds in
accordance with the provisions of the Series Resolution authorizing the issuance of such Capital Appreciation
Bonds.
B-2
“Chief Financial Officer” shall mean the individual to whom the Board of Trustees has delegated the
responsibility of supervising and maintaining records and accounts relating to the collection and disbursement of the
revenues derived by the University from the operation and maintenance of the Facilities.
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. References to the
Code and sections of the Code include relevant applicable regulations, temporary regulations and proposed
regulations thereunder and under the Internal Revenue Code of 1954, as amended, and any successor provisions to
those sections, regulations, temporary regulations or proposed regulations.
“Combined Annual Principal and Interest Requirement” shall mean, with respect to any particular Fiscal
Year, the sum of the Annual Principal and Interest Requirements on all Bonds Outstanding.
“Counsel” shall mean an attorney duly admitted to practice law before the highest court of the State, who is
not a full-time employee of the University or the State but may include the Office of the Attorney General of South
Carolina.
“Debt Service Fund” shall mean the fund so designated pursuant to a Series Resolution and designed to
provide for the payment of the principal of and interest on a particular Series of Bonds issued pursuant to the Bond
Resolution, as the same fall due, and as established pursuant to the provisions of the Bond Resolution.
“Debt Service Reserve Fund” shall mean the fund, if any, so designated pursuant to a Series Resolution and
designed (1) to insure the timely payment of the principal of and interest on a particular Series of Bonds Outstanding
and issued pursuant to the Bond Resolution, and (2) to provide for the redemption of such Series of Outstanding
Bonds prior to their stated maturity, as established by the provisions of the Bond Resolution.
“Depository” shall mean The Depository Trust Company, New York, New York, or other recognized
securities depository selected by the University, which securities depository maintains a book-entry system in
respect of the Bonds of any Series, and shall include any substitute for or successor to the securities depository
initially acting as Depository.
“Enabling Act” shall mean Chapter 147 of Title 59, Code of Laws of South Carolina, 1976, as the same
may be amended from time to time.
“Facilities” shall mean all of the following facilities owned by the University and operated directly by the
University or on its behalf to provide for the students, faculty or staff at the University, hereby designated by the
Board of Trustees: dormitories, apartment buildings, dwelling houses, and inns excluding (1) the residence of the
President of the University and (2) dormitories or other student dwelling quarters leased (but not owned or yet
owned) by the University pursuant to a lease or any lease/purchase arrangement; bookstores and other stores
operated by the University, including facilities for the sale of sundry items; dining halls and other food service
facilities, including canteen and vending facilities; and parking and vehicle registration facilities (including all
parking lots and buildings) and all furniture, furnishings and equipment therein, which are now owned by the
University, or which may be acquired by the University for any of these purposes; and shall include those additional
Facilities as may be added pursuant to Section 4.25 of the Bond Resolution (Additional Facilities). Where the
context requires, the term “Facilities” shall include services provided in or by the Facilities but shall specifically
exclude athletic department projects which (1) primarily serve varsity athletic teams of the University and (2) are
athletic facilities defined within Section 59-119-920 of the State Code.
“Facilities Operation and Maintenance Fund” shall mean the fund, account or accounts to be established
and maintained by the University, pursuant to the Bond Resolution, in such fashion as to reflect adequately all of
the receipts and revenues derived from the operation of the Facilities and all interest and other income earned by
the University in connection with the operation of the Facilities. The Facilities Operation and Maintenance Fund
shall also be the Fund from which all Operation and Maintenance Expenses of the Facilities are paid.
B-3
“Fiscal Year” shall mean the period of twelve (12) calendar months, beginning on July 1 of each year and
ending with June 30th of the succeeding year, unless the same shall have been changed by the University pursuant
to the authorization of the Bond Resolution.
“Fitch” shall mean Fitch IBCA, Inc., and its successors.
“General Assembly” shall mean the duly constituted legislature of the State of South Carolina.
“Government Obligations” shall mean and include direct noncallable general obligations of the United
States of America or noncallable obligations, the payment of principal of or interest on which is fully and
unconditionally guaranteed by the United States of America.
“Gross Revenues” shall mean
a.
all receipts and revenues, including fines and commissions, derived from the operation of
the Facilities (including any rents or other fees received in connection with the Facilities not
operated directly by the University),
b.
all proceeds from the sale or other disposition of any property owned directly or
beneficially by the University in connection with the operation of the Facilities, and
c.
all interest and other income received directly or indirectly from the investment of any
moneys or accounts relating to the Facilities; excluding, however, investment income restricted to a
purpose inconsistent with the payment of operating expenses or debt service and specifically excluding (if
so provided by any Series Resolution) interest earned on any construction fund or construction account
created with the proceeds of borrowing by the University.
“Improvement Fund” shall mean the fund therein so designated and designed to provide for contingencies,
for the replacement of depreciated or obsolete items of the Facilities and for improvements, expansions and
renovations to the Facilities, as established pursuant to the Bond Resolution.
“Insurer” with respect to any Series of bonds, shall mean an insurance company that has written a
Municipal Bond Insurance Policy covering such Series of Bonds.
“Junior Lien Bonds” shall mean any revenue bonds, notes or other obligations issued by the University
which are secured by pledges of the Net Revenues and Additional Funds which are junior and subordinate in all
respects to the pledges and liens made to secure Bonds.
“Moody’s” shall mean Moody’s Investors Service, Inc., and its successors.
“Municipal Bond Insurance Policy” shall mean any municipal bond insurance policy insuring the payment,
when due, of the principal of and interest on a Series of Bonds.
“Net Revenues” shall mean for the period in question, Gross Revenues less Operation and Maintenance
Expenses for the Facilities but there shall be excluded from the calculation made to determine Net Revenues:
(i)
gains or losses on the sale or other disposition of investments of fixed or capital assets, which do
not result from the ordinary course of business;
(ii)
investment income restricted to a purpose inconsistent with the payment of operating expenses or
debt service including (whether or not so restricted) interest earned on any construction fund or construction account
created with the proceeds of borrowing by the University; and
(iii)
any amounts received by way of government grants or appropriations pertaining to the Facilities to
the extent that such grants are not permitted by law or their terms to be pledged to secure the Bonds.
B-4
“Operation and Maintenance Expenses” shall mean for the period in question all expenses incurred in
connection with the administration and operation of the Facilities, including, without limiting the generality of the
foregoing, salaries, wages and employer contributions, costs of materials, supplies and insurance, costs of water,
sewer and power, and such expenses as may be reasonably necessary to preserve the Facilities in good repair and
working order, and to pay the fees and charges of the Trustee and the custodian or trustee of any fund, the Paying
Agent, the Registrar, the costs of audits required thereunder, the costs of computation and payment of any arbitrage
rebate, and the premiums for all insurance and fidelity bonds required by the Bond Resolution. Operation and
Maintenance Expenses shall not include:
(a)
depreciation allowances;
(b)
amounts paid as interest on bonds;
(c)
operational and maintenance expenses paid from the (a) receipts of government grants or
(b) appropriations paid to the University by the General Assembly;
(d)
amounts expended for extraordinary repairs to the Facilities; and
(e)
the amortization of financing expenses, underwriting discounts, call premiums, gains or
losses on the extinguishment of debt due to the refinancing of the same, and other related or incidental nonrecurring expenses resulting from the issuance or refinancing of Bonds.
“Outstanding”, when used with reference to the Bonds, shall mean, as of any date, all such Bonds
theretofore or then being authenticated and delivered except:
(a)
(b)
delivered;
(c)
Bonds paid or redeemed and cancelled at or prior to such date;
Bonds in lieu of or in substitution for which other Bonds shall have been executed and
Bonds deemed to have been paid as provided in the Bond Resolution; and
(d)
for purposes of any consent or other action to be taken by the Holders of a specified
percentage of Bonds, Bonds held by, or for the account of, the University, or by any person controlling,
controlled by or under common control with the University.
“Partially Amortizing Bonds” shall mean a Series of Bonds twenty-five percent (25%) or more of the
principal payments of which are due in a single Fiscal Year, which portion of the principal is not required by the
Series Resolution, providing for their issuance, to be paid by redemption prior to such maturity date.
“Paying Agent” shall mean the State Treasurer or any bank or trust company or other entity appointed from
time to time as Paying Agent or Paying Agents in accordance with the Bond Resolution to serve as Paying Agent for
one or more Series of Bonds issued thereunder.
“Principal Installment” shall mean, as of any date of calculation, (i) the aggregate principal amount of
Outstanding Bonds stated to mature on a certain date, reduced by the aggregate principal amount of such Bonds
which will be retired by reason of any mandatory sinking fund payment payable before such date, plus (ii) any
mandatory sinking fund payment due on such certain date, together with the aggregate amount of the premiums, if
any, applicable to such mandatory sinking fund payments, plus (iii) with respect to any Capital Appreciation Bonds
required to be paid on such certain date, the Accreted Value as of such certain date of such Capital Appreciation
Bonds; and in this latter respect, any reference to “principal” of Bonds in the Bond Resolution shall mean, with
respect to Capital Appreciation Bonds, the Accreted Value of such Capital Appreciation Bonds.
“Reserve Requirement” shall mean, as of any date of calculation, the debt service reserve requirement, if
any, established by a Series Resolution with respect to a particular Series of Bonds.
B-5
“S&P” means Standard & Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc., and
its successors.
“Series” shall mean all of the Bonds authenticated and delivered on original issuance in a simultaneous
transaction, and any Bonds thereafter authenticated and delivered in lieu of or in substitution for (but not to refund)
such Bonds as therein provided, regardless of variations in maturity, interest rate or other provisions.
“Series Resolution” shall mean a resolution of the Board of Trustees authorizing the issuance of a Series of
Bonds pursuant to the Bond Resolution in accordance with the terms and provisions thereof.
“State” shall mean the State of South Carolina.
“State Authority” shall mean the State Fiscal Accountability Authority (formerly the State Budget and
Control Board).
“State Code” shall mean the Code of Laws of South Carolina 1976, as amended from time to time.
“State Treasurer” shall mean the Office of the State Treasurer of South Carolina.
“Trustee” shall initially mean the State Treasurer but also may include a bank, trust company or financial
institution serving in such capacity pursuant to the provisions of the Bond Resolution.
“University” shall mean Clemson University, South Carolina.
“University Fee” shall mean the total academic fee imposed by the Board of Trustees and charged all
persons in attendance at any regular or summer session of the University who are enrolled in any course or class for
which credit is given toward any degree offered by the University but not to include special student fees, tuition and
matriculation fees.
“Variable Rate Bonds” shall mean, for any period of time, any Bonds which during such period bear
interest at a variable rate; provided that Bonds the interest rate on which has been fixed for the remainder of the term
thereof shall no longer be Variable Rate Bonds.
General Covenants and Rate Covenants
The University covenants and agrees in the Bond Resolution:
(1)
That neither the Facilities, nor any part thereof, nor any of the income or revenues derived from
the Facilities, have been or will be hypothecated, mortgaged, or otherwise pledged or encumbered, save and except
as disclosed and provided for in the Bond Resolution; provided, however, that this provision shall not prevent the
University from financing the acquisition of any item or items of equipment for or related to the Facilities, which
financing is secured by a purchase money security interest or the equivalent thereof;
(2)
That so long as there are any Bonds outstanding and unpaid, it will perform all duties with
reference to the Facilities required by the Constitution and statutes of the State, including without limitation the
Enabling Act, and the University hereby irrevocably covenants, binds and obligates itself not to pledge, mortgage or
otherwise encumber the Facilities or any part thereof, or any revenues therefrom, except in the manner therein
authorized, and it will not sell, lease or dispose of any portion of the Facilities, necessary or useful (as determined by
the University) in the operation of the Facilities, except as therein provided until all Bonds shall be paid in full or
unless and until provision shall have been made for the payment of all Bonds and the interest thereon in full;
(3)
That it will permit so long as there are any Bonds Outstanding, any Bondholder to inspect the
Facilities and all records and accounts thereof under reasonable terms and conditions and after reasonable notice has
been given;
B-6
(4)
That it will not make any use, and it shall not direct the Trustee and each fiduciary to make any
use, of the proceeds of any Series of Bonds which Bonds were intended upon the issuance thereof to be exempt from
federal income taxation, which, if such use had been reasonably expected on the date of the issuance of the Bonds of
such Series, would have caused such Bonds or any other Bonds to be “arbitrage bonds” within the meaning of
Section 148 of the Code and will observe and not violate the requirements of Section 148 of the Code;
(5)
That, as to any Series of Bonds which were intended at the time of their issuance to be exempt
from federal income taxation, it will take all actions required of it under the Code that are necessary to preserve the
tax-exempt status of such Bonds, including without limitation, actions necessary to comply with all information
reporting requirements and any obligation to rebate arbitrage earnings on the proceeds of such Bonds to the United
States Government;
(6)
That it will make all payments or deposits required under Articles VII (Establishment of Funds)
and VIII (Disposition of Revenues) of the Bond Resolution in a timely manner;
(7)
That it will, from time to time, forward to the Trustee, in writing, the name of the Chief Financial
Officer and any designee of such Chief Financial Officer, together with a specimen signature of such individual; and
(8)
That it will at all times prescribe and maintain rates and charges and thereafter collect such sums
in accordance with such rates and charges for the Facilities or the use thereof which are reasonably expected to yield
annual Net Revenues in the current Fiscal Year that equal at least one hundred percent (100%) of the Combined
Annual Principal and Interest Requirement for all Bonds Outstanding in such Fiscal Year and, promptly upon any
material change in the circumstances which were contemplated at the time such rates and charges were most
recently reviewed, but not less frequently than once in each Fiscal Year, shall review such rates and charges for the
use of the Facilities and shall promptly revise such rates and charges as necessary to comply with the foregoing
requirement. For each Fiscal Year, the Board of Trustees shall adopt an Annual Budget including amended
schedules for such rates and charges for the use of the Facilities for such Fiscal Year which shall set forth in
reasonable detail the estimated revenues and operating expenses of the Facilities for each Fiscal Year and which
shall include appropriations, if any, for the estimated operating expenses of the Facilities for such period and the
amount to be deposited during such Fiscal Year in the Improvement Fund. The Board of Trustees may at any time
adopt an amended Annual Budget for the remainder of the then current Fiscal Year, or may delegate to the Chief
Financial Officer the authority to revise rates and charges as may be necessary, in such a manner as may be
consistent with State law.
Additional Bonds
The University covenants and agrees in the Bond Resolution that it will not issue Bonds or other
obligations payable from the Net Revenues of the Facilities and from the University Fee whose claim to the
proceeds of such Net Revenues and Fee is prior to that of the Series 2015B Bonds, but reserves therein the right to
issue Bonds which, if issued in accordance with the Enabling Act and the Bond Resolution, will be on a parity with
the Series 2015B Bonds in all respects.
The Bond Resolution provides that from time to time additional series of Bonds may be issued pursuant to
a Series Resolution for the purposes of:
(1)
providing funds for the financing or refinancing of the costs of the acquisition,
construction, reconstruction, renovation and improvement of land, buildings, and other improvements to
real property and equipment for the purpose of providing Facilities;
(2)
providing funds for the payment of any bond anticipation note or notes issued in order to
defray the cost of providing new Facilities or renovating or improving existing Facilities and that were
issued in anticipation of the issuance and sale of Bonds;
B-7
(3)
refunding Bonds or other obligations, the proceeds of which were used to provide for
new Facilities or the renovation or improvement of existing Facilities;
(4)
funding any Debt Service Reserve Fund (including the purchase of a surety bond, letter
of credit or similar instrument credited thereto in lieu of cash as provided therein) or restoring the value of
the cash and securities in any Debt Service Reserve Fund to an amount equal to the applicable Reserve
Requirement;
(5)
determine; and
(6)
capitalizing interest on the Bonds for such period of time as the Board of Trustees may
paying costs of issuance of Bonds, including any credit enhancement therefor.
The Bond Resolution provides that additional Bonds may be issued provided the following conditions,
among others, are met:
(1)
Bonds shall be stated to mature and have mandatory or sinking fund redemptions on the dates, in
the years and in the amounts prescribed or determined in the manner prescribed by the Series Resolution;
(2)
Bonds shall bear interest at the rates and on the occasions prescribed or determined in the manner
prescribed by the Series Resolution;
(3)
Bonds shall be issued for a purpose or purposes set forth above;
(4)
There shall exist, on the occasion of the issuance of the Bonds, no default in the payment of the
principal of or interest on any Bonds or Junior Lien Bonds then Outstanding;
(5)
The University shall obtain an opinion of Bond Counsel to the effect that (a) the Bond Resolution
and the applicable Series Resolution have been duly and lawfully adopted and are in full force and effect; (b) the
Bonds have been duly and lawfully authorized and executed by the University and are valid and binding upon, and
enforceable against, the University (except to the extent that the enforceability thereof may be limited by the
operation of bankruptcy, insolvency and similar laws affecting rights and remedies of creditors); (c) with respect to
such Bonds, the Bond Resolution creates the valid pledge which it purports to create of the Net Revenues and
Additional Funds subject to the application thereof to the purposes and on the conditions permitted by the Bond
Resolution; and (d) upon the execution, authentication, and delivery thereof, such Bonds will have been duly and
validly authorized and issued in accordance with the Bond Resolution;
(6)
Unless on the date of delivery of such Series of Bonds there shall be on deposit in each Debt
Service Reserve Fund, if any, an amount equal to the applicable Reserve Requirement immediately following the
issuance of such Series of Bonds (whether in the form of cash or a qualified surety bond, letter of credit or similar
instrument in lieu thereof in accordance with the Bond Resolution, there shall be deposited in the applicable Debt
Service Reserve Funds, if any, such amounts or a qualified substitute in accordance with the Bond Resolution shall
be provided, as is necessary, to make the value of the moneys and securities or such qualified substitute in such Debt
Service Reserve Funds equal to the applicable Reserve Requirement, unless:
(a)
the Series Resolution establishing the particular Debt Service Reserve Fund shall have
provided for successive monthly payments beginning in the first month following the date of the issuance
of the Bonds of any such Series in substantially equal monthly amounts (the “Monthly Series Payments”)
so that by the end of any period not exceeding the period of thirty-six (36) months from the date of issuance
of such Series of Bonds there shall be in its Debt Service Reserve Fund an amount equal to its Reserve
Requirement with respect to such Bonds;
(b)
there shall be no unremedied defaults of any Monthly Series Payments required to have
been made; and
B-8
(c)
each Debt Service Reserve Fund is funded in an amount equal to its Reserve Requirement
with respect to each Series of Bonds, other than Bonds issued pursuant to Series Resolutions described in
(a) above;
(7)
Except in the case of the initial Series of Bonds issued pursuant to the Bond Resolution and Bonds
issued for the purpose of refunding any Bonds:
Net Revenues and Additional Funds during the most recent Fiscal Year for which audited
financial statements of the University are completed shall be certified by the Chief Financial
Officer on the basis of such audited financial statements to be not less than one hundred twenty
percent (120%) of the maximum Combined Annual Principal and Interest Requirement on all
Bonds Outstanding immediately prior to the issuance of such proposed Series of Bonds and on
such proposed Series of Bonds. For these purposes, such Net Revenues and Additional Funds
may be adjusted to reflect (1) any rate or fee increases currently adopted and to be in effect prior
to or coincident with the issuance of such proposed Series of Bonds and determined pro forma as
though such rate increases had been in continuous effect during such recent Fiscal Year; (2) in the
event proceeds of such proposed Series of Bonds will be used to pay interest on such proposed
Series, one hundred percent (100%) of the interest that will accrue on such Series of Bonds during
the first twelve (12) full months following the date of delivery of the proposed Series and that will
be paid from such proceeds, provided, however, that any such interest accruing in such twelve (12)
month period that is to be paid on a date within the Fiscal Year of maximum Combined Annual
Principal and Interest Requirements shall not be so added into such Net Revenues and Additional
Funds; (3) any amount allowed by subparagraph (2) of this paragraph (7) as an adjustment with
respect to a previously-issued Series of Bonds if the proposed Series of Bonds is being issued
prior to the end of the Fiscal Year in which capitalized interest on the previously issued Series of
Bonds is exhausted;
(8)
In the case of Bonds issued for the purpose of refunding any Bonds, either:
(a)
The Annual Principal and Interest Requirements of the refunding Bonds shall not exceed
the Annual Principal and Interest Requirements of the refunded Bonds until a time subsequent to the last
maturity of Bonds not refunded and which remain Outstanding following the issuance of the refunding
Bonds; or
(b)
The University shall comply with the revenue test prescribed above.
(9)
Except as to Bonds issued only for the purpose of refunding any Bonds, the University shall obtain
an opinion of Counsel that the title to any tract of land to be acquired with any part of the proceeds of such Bonds
shall be good and marketable, and will vest in the University either (a) a fee simple title, or (b) a leasehold estate,
which shall extend at least one (1) year beyond the maturity date of the last maturing of the Bonds of such Series
and the Bonds then to be Outstanding;
(10)
If any Series of Bonds shall contain Variable Rate Bonds;
(a)
The Series Resolution may provide for and specify a maximum interest rate on (i) such
Bonds and (ii) any reimbursement obligation to a liquidity provider for such Bonds, it being here expressly
provided that the obligation to pay any such reimbursement obligation shall be on a parity with the Bonds
with respect to the pledge of the Net Revenues; and
(b)
The liquidity provider for such Bonds shall be rated in either of the two highest short
term rating categories by Moody’s or S&P or Fitch;
(11)
All amounts owing under a reimbursement agreement with any provider of a surety bond, letter of
credit or similar instrument as contemplated under the Bond Resolution shall have been paid; and
B-9
(12)
The issuance of the Bonds, if so required by the Enabling Act, shall have been reviewed and
approved by the State Authority.
Defeasance
Pursuant to the Bond Resolution, defeasance of Bonds of a particular Series shall be deemed to have
occurred when, among other things, the Trustee, Paying Agent or other custodian authorized by the University, shall
hold, at the stated maturities of such Bonds, in trust and irrevocably appropriated thereto, sufficient money for the
payment thereof, or direct obligations of or obligations unconditionally guaranteed by, the United States of
America,. the principal of and interest on which when due (without reinvestment thereof) will provide money which,
together with the money, if any, deposited at the same time, will be sufficient to pay when due the principal, interest
and redemption premiums, if any, due and to become due on and prior to the maturity or, if the University has
irrevocably elected to redeem such Bonds, on and prior to the redemption date of such Bonds.
Establishment and Flow of Funds
The Bond Resolution provides that for so long a time as any sum remains due and payable by way of
principal or interest on the Bonds, the accounting system for the Facilities shall be so arranged as to reflect the
following funds or accounts relating to the revenues of the Facilities and such funds or accounts shall be established
and maintained, and deposits shall be made therein in the manner required by the provisions of the Bond Resolution.
(The brief descriptions of such funds being for convenience of reference only; more complete descriptions being
contained in the Bond Resolution.)
1.
Facilities Operation and Maintenance Fund. All Gross Revenues shall be deposited in accordance
with and in the manner prescribed by Article VIII of the Bond Resolution into the Facilities Operation and
Maintenance Fund. Money in the Facilities Operation and Maintenance Fund shall be withdrawn and made use of
only in the manner and in the order of priority specified in such Article VIII. The Facilities Operation and
Maintenance Fund is intended to provide for the payment of all Operation and Maintenance Expenses. Article VIII
of the Bond Resolution provides that withdrawals from the Facilities Operation and Maintenance Fund may be made
periodically as required to fund the Facilities as set forth in the Annual Budget For each Fiscal Year, the Board of
Trustees will cause to be prepared the Annual Budget for the operation of the Facilities for the next ensuing Fiscal
Year (which may be a part of the general budget of the University), which shall reflect the rate schedules for the
Facilities for the ensuing Fiscal Year, an estimate of the Gross Revenues, and all sums which the Board of Trustees
intends to spend for such Facilities during such Fiscal Year. Such amounts shall be detailed in accordance with
generally acceptable accounting practice, and shall set forth:
(A)
and
all sums intended to be expended for operation and maintenance for such Fiscal Year;
(B)
all sums intended for the Improvement Fund for such Fiscal Year.
2.
Debt Service Funds. The Bond Resolution provides that separate Debt Service Funds shall be
established for each Series of Bonds Outstanding. Moneys in a Debt Service Fund will be available to pay only the
Series of Bonds for which such account was established. The Debt Service Funds are to be maintained by the
Trustee and are intended to provide for the ratable payment of the principal of, premium, if any, and interest on the
respective Series of Bonds as the same shall become due. The Bond Resolution provides that on or before the
twentieth (20th) Business Day of each month following the delivery of the first Series of Bonds issued under the
Bond Resolution, there shall be deposited in the respective Debt Service Funds the monthly fraction of the aggregate
amount of interest to become due on the respective Series of Bonds on the next ensuing interest payment date;
provided, however, that if provision has been made for the payment of all or part of the next installment of interest
to become due on any Series of Bonds, pursuant to any other provision of the Bond Resolution, or any Series
Resolution, or by reason of investment earnings, then, in such event, the deposits so required may be omitted, or
reduced accordingly. If, as a result of the provision in a Series Resolution that any Series of Bonds shall bear interest
payable for a period less than semi-annually, and any Holder of such Bonds shall receive payments of interest for
any period for which payments were not made to holders of Bonds bearing interest payable semi-annually, then
there shall be set aside in the applicable Debt Service Fund in trust for the benefit of the Holders of Bonds bearing
B-10
interest payable semi-annually an amount of money equal to the interest accrued on the Bonds bearing interest
payable semi-annually for such period. The Bond Resolution additionally provides that on or before the twentieth
(20th) Business Day of each month following the delivery of the first Series of Bonds issued under the Bond
Resolution, there shall be deposited in the respective Debt Service Funds a sum equal to the monthly fraction of the
aggregate amount of principal of the respective Series of Bonds becoming due and payable on the next ensuing
principal maturity date. Provided, however, that if provision has been made for the payment of all of the principal to
become due on the Bonds, pursuant to any other provision of the Bond Resolution, or any Series Resolution, or by
reason of investment earnings, then, in such event, the deposits so required may be omitted, or reduced accordingly.
Withdrawals from the Debt Service Funds shall be made only by the Trustee who shall transmit to the
Paying Agent, at such times as may be appropriate, the sums required to pay the principal of, premium, if any, and
interest on the respective Series of Bonds.
Moneys in the Debt Service Funds shall be invested and reinvested at the discretion of the Trustee in
Authorized Investments.
3.
Debt Service Reserve Funds. A Series Resolution shall provide for the establishment of a Debt
Service Reserve Fund for any Series of Bonds for which a Reserve Requirement may have been established
pursuant to such Series Resolution. Each Debt Service Reserve Fund so established is to be maintained at the
respective Reserve Requirement as may have been established for the particular Series of Bonds. Funds in a
particular Debt Service Reserve Fund will be available to secure only the payment of the Series of Bonds for which
such Debt Service Reserve Fund was established. All Debt Service Reserve Funds are maintained by the Trustee
and are intended to insure the timely payment of the principal of and interest on the respective Series of Bonds, and
to provide for any redemption of the respective Series of Bonds prior to their stated maturities.
Money in the Debt Service Reserve Funds shall be invested and reinvested at the discretion of the Trustee
in Authorized Investments. The earnings from such investments accumulate in the particular Debt Service Reserve
Fund until each required semi-annual valuation. At the time of such valuation, if the market value of the securities
and money in a Debt Service Reserve Fund exceed the applicable Reserve Requirement, such excess is removed
from the Debt Service Reserve Fund and used to effect partial redemption of the applicable Series of Bonds or
transferred into the Facilities Operations and Maintenance Fund.
In lieu of the deposit of moneys into a Debt Service Reserve Fund, the University may satisfy the
applicable Reserve Requirement by causing to be credited thereto a surety bond, line of credit, letter of credit or an
insurance policy payable to the Trustee for the benefit of the Holders of the applicable Series of Bonds in an
amount which together with other moneys on deposit in such Debt Service Reserve Fund, if any, is equal to such
Reserve Requirement.
In the event a Debt Service Reserve Fund has been funded with a surety bond, insurance policy, line of
credit or letter of credit and either such instrument has been drawn upon, monies available to repay such surety
bond, insurance policy, line of credit or letter of credit provider shall first be used to reinstate the surety bond,
insurance policy, line of credit or letter of credit to its original amount. Any interest or fees due to the surety bond,
insurance policy, line of credit or letter of credit provider, other than reinstatement, shall be subordinate to any
amounts payable upon the applicable Series of Bonds.
In the event a Debt Service Reserve Fund is funded with a surety bond, insurance policy, line of credit or
letter of credit, any revenues available for debt service on the Bonds shall be distributed on a pro rata basis among
the outstanding Bonds of each Series without regard to the method or level of funding of the respective Debt Service
Reserve Funds, if any, for each Series.
Any cash or investments on deposit in or credited to a Debt Service Reserve Fund shall be withdrawn prior
to any draw on its surety bond, letter of credit or similar instrument with respect thereto. In the event the amount on
deposit in, or credited to, a Debt Service Reserve Fund, in addition to the amount available under the surety bond,
letter of credit or similar instrument in question (the “Original Funding Instrument”) includes amounts available
under another surety bond, letter of credit or similar instrument (the “Additional Funding Instrument”), draws on the
B-11
Original Funding Instrument and the Additional Funding Instrument shall be made on a pro rata basis to fund any
insufficiency in the applicable Debt Service Fund.
The market value of the cash and securities in each Debt Service Reserve Fund, if any, shall be calculated
as of each Bond Payment Date in order to determine if such Debt Service Reserve Fund contains the amount
required by the applicable Series Resolution and the extent to which payments therefor or withdrawals therefrom
must be made. In the event the aggregate market value of such cash and securities, together with any surety bond,
insurance policy, line of credit or letter of credit permitted under the Bond Resolution, in a Debt Service Reserve
Fund is determined not to equal the applicable Reserve Requirement, then there shall be paid into such Debt Service
Reserve Fund on the last Business Day of each of twelve (12) months following a determination of such deficiency,
one-twelfth (1/12) of the amount necessary to re-establish in such Debt Service Reserve Fund its Reserve
Requirement; provided, however, the University may fully re-establish the Reserve Requirement in a more timely
manner.
4.
Improvement Fund. The Improvement Fund is to be maintained by the University to establish a
reasonable reserve for contingencies and for improvements, expansions and renovations of the Facilities. Money in
the Improvement Fund may be withdrawn for the purposes described in the next succeeding sentence in the event all
required deposits have been made in the respective Debt Service Funds and any Debt Service Reserve Funds. Such
moneys may be withdrawn by the University from time to time and used solely:
(a)
for the purpose of restoring depreciated or obsolete items of the Facilities;
(b)
for improvements, expansions and renovations to the Facilities, other than for those
things which are reasonably necessary to maintain the Facilities in good repair and condition;
(c)
to defray the cost of unforeseen contingencies;
(d)
to prevent defaults of Bonds (should any Debt Service Fund or Debt Service Reserve
Fund prove to be insufficient for such purposes) and Junior Lien Bonds; and
(e)
for optional redemption of Bonds.
5.
Use of Surplus Money. At any time that there is in the Facilities Operation and Maintenance Fund
an amount sufficient to make all payments required by the foregoing through the next ensuing Bond Payment Date,
the University may withdraw any moneys in excess of such amount and use them (a) to make additional deposits to
the Improvement Fund or (b) in the discretion of the Board of Trustees, for any other lawful purposes of the
University.
6.
Investments of Moneys in Facilities Operation and Maintenance Fund and Improvement Fund.
Moneys in the Facilities Operation and Maintenance Fund and the Improvement Fund are invested and reinvested by
the State Treasurer in Authorized Investments. Any earnings on investments referred to in this paragraph will accrue
to the benefit of the Fund in which such investments are contained.
Modification of Resolution
Provided that the security of the Bonds will not be lessened or in any manner impaired, the Board of
Trustees may for anyone or more of the following purposes, at any time, or from time to time, adopt a resolution
which supplements the Bond Resolution for the following purposes:
(1)
To provide for the issuance of a Series of Bonds in accordance with the other provisions
of the Bond Resolution;
(2)
To add to the covenants and agreements of the University in the Bond Resolution and to
provide for other covenants and agreements thereafter to be observed relative to the operation,
maintenance, construction or administration of any part of the Facilities; it being specifically provided that
B-12
the Chief Financial Officer is authorized prior to the sale of any Series of Bonds to increase the required
ratios involving Net Revenues or to increase the credit rating requirements for the providers of Debt
Service Reserve Fund substitutes and any such increased covenant shall be set forth in the form of the Bond
of that Series and each subsequent Series;
(3)
To surrender any right, power or privilege reserved to or conferred upon the University
by the Bond Resolution; or
(4)
To cure, correct and remove any ambiguity or inconsistent provisions contained in the
Bond Resolution.
The rights and duties of the University and the Bondholders and the terms and provisions of the Bond
Resolution may be modified or altered in any respect by resolution of the Board of Trustees with the consent of the
Bondholders of 66-2/3% in principal amount of all Bonds of each Series which will be affected (with the consent of
any municipal bond insurance company which has insured a Series of Bonds), provided that no modification or
alteration will:
(a)
Extend the maturity of any payment of principal or interest due upon any Bond;
(b)
Effect a reduction in the amount which the University is required to pay by way of
principal of, redemption premium or interest on any Bonds;
(c)
Effect a change as to the type of currency in which the University is obligated to effect
payment of the principal of, redemption premium or interest on the Bonds;
(d)
Permit the creation of a pledge of or lien upon the revenues of the Facilities or upon the
proceeds of the Operations Fee prior or equal to the Bonds except as authorized by the Bond Resolution;
(e)
Permit preference or priority of any Series of Bonds issued pursuant to the Bond
Resolution to others;
(f)
Alter or modify the provisions of Article V (Rates and Charges), Article IV (Additional
Bonds), Article VII (Establishment of Funds), and Article VIII (Disposition of Revenues) of the Bond
Resolution; or
(g)
Reduce the percentage of Bonds required for the written consent of the modification or
alteration of the provisions of the Bond Resolution.
Events of Default
The occurrence and continuance of any of the following is an “Event of Default” under the Bond
Resolution:
(1)
Payment of the principal of any Bonds shall not be made when the same shall become
due and payable, either at maturity or by proceedings for redemption.
(2)
Payment of any installment of interest on Bonds shall not be made when the same
becomes due and payable.
(3)
Payment of any installment of either interest or principal of any Junior Lien Bonds shall
not be made when the same becomes due and payable or any other event of default shall exist with respect
to any Junior Lien Bonds.
(4)
The University shall for any reason be rendered incapable of fulfilling its obligations
under the Bond Resolution.
B-13
(5)
An order or decree shall be entered with the consent or acquiescence of the University,
appointing a receiver, or receivers, of the Facilities, or of the revenues thereof, or any proceedings shall be
instituted with the consent or acquiescence of the University for the purpose of effecting a composition
between the University and its creditors, or for the purpose of adjusting claims of such creditors pursuant to
any Federal or State statute now or hereafter enacted, or if such order or decree having been entered
without the consent or acquiescence of the University, shall not be vacated or discharged or stayed on
appeal within 60 days after entry thereof, or if such proceedings having been instituted without the consent
or acquiescence of the University, shall not be withdrawn or any orders entered shall not be vacated,
discharged, or stayed on appeal within 60 days after the institution of such proceedings, or the entry of such
orders.
(6)
The University shall fail to operate the Facilities in an efficient and business-like fashion
or shall default in the due and punctual performance of any other of the covenants, conditions, agreements
or provisions contained in the Bonds or in the Bond Resolution, and such default shall continue for 30 days
after written notice, specifying such default and requiring the same to be remedied, shall have been given to
the University by any Bondholder, provided that in the case of default specified in this subparagraph, if the
default be such that it cannot be corrected within 30 days, it shall not constitute an Event of Default if
corrective action is instituted by the University within 30 days and diligently pursued until the default is
corrected.
(7)
The occurrence of an event of default on the part of the University under any
reimbursement agreement with a provider of a surety bond, insurance policy, line of credit or letter of credit
as permitted under the Bond Resolution.
The Bond Resolution further provides that the foregoing provisions of subparagraph (6) above are subject
to the following limitations: If by reason of force majeure the University is unable in whole or in part to carry out its
agreements contained in the Bond Resolution (other than the obligations on the part of the University contained in
any of Article IV (Additional Bonds), Article V (Rates and Charges), Article VII (Establishment of Funds) and
Article VIII (Disposition of Revenues) thereof), the University shall not be deemed in default during the continuance
of such inability. The term “force majeure” means, without limitation, the following: acts of God; strikes; lockouts
or other industrial disturbances; acts of public enemies; orders of any kind of the government of the United States or
of the State or any of their departments, agencies, or officials, or any civil or military authority; insurrections; riots;
epidemics; landslides; lightning; earthquake; fire; hurricanes; storms; floods; washouts; droughts; arrests; restraint of
government and people; civil disturbances; explosions; breakage or accident to machinery, tunnels or canals; partial
or entire failure of utilities; or any other cause or event not reasonably within the control of the University. The
settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the
University, and the University shall not be required to make settlement of strikes, lockouts and other industrial
disturbances by acceding to the demands of the opposing party or parties when such course is in the judgment of the
University unfavorable to the University.
Acceleration; Annulment
Upon the happening of an Event of Default, the Trustee may, and upon the written request of the Holders of
not less than 25% in aggregate principal amount of Bonds outstanding shall, by notice in writing to the University,
declare all Bonds outstanding immediately due and payable. In the event of such declaration, the Bonds shall
become and be immediately due and payable, anything in the Bonds or in the Bond Resolution to the contrary
notwithstanding. In such event, there shall be due and payable on the Bonds an amount equal to the total principal
amount of all such Bonds, plus all interest accrued thereon and which will accrue thereon to the date of payment.
At any time after the principal of the Bonds shall have been so declared to be due and payable and before
the entry of final judgment or decree in any suit, action or proceeding instituted on account of such delimit, or before
the completion of the enforcement of any other remedy under the Bond Resolution, the Trustee may annul such
declaration and its consequences with respect to any Bonds not then due by their terms if:
B-14
(1)
Moneys shall have been deposited in the respective Debt Service Funds sufficient to pay
all matured installments of interest and principal (other than principal then due only because of such
declaration) of all outstanding Bonds;
(2)
Moneys shall have been deposited with the Trustee sufficient to pay the charges,
compensation, expenses, disbursements, advances and liabilities of the Trustee;
(3)
All other amounts then payable by the University under the Bond Resolution shall have
been paid or a sum sufficient to pay the same shall have been deposited with the Trustee; and
(4)
Every Event of Default known to the Trustee (other than a default in the payment of the
principal of such Bonds then due only because of such declaration) shall have been remedied to the
satisfaction of the Trustee. No such annulment shall extend to or affect any subsequent Event of Default or
impair any right consequent thereon.
Notwithstanding any provision of the Bond Resolution to the contrary, (i) each Insurer shall be deemed the
exclusive Holder of all Bonds insured by that Insurer, for the purposes of all approvals, consents, waivers, institution
of any action, and the direction of all remedies. No rights granted to an Insurer by the Bond Resolution shall be
effective at any time that such Insurer is in breach of its obligations under the Municipal Bond Insurance Policy or is
subject to bankruptcy or receivership proceedings, and (ii) upon the occurrence of an Event of Default and with
respect to all remedies provided therein, (a) the direction to accelerate, or consent to an acceleration, by any Insurer
with respect to a Series of Bonds shall result in the acceleration of all Bonds of all Series and (b) any acceleration
may be annulled only with the consent of each Insurer of a Series of Bonds.
Additional Remedies
Upon the happening of any Event of Default, the Trustee may, and upon the written request of the Holders
of not less than 25% in the aggregate principal amount of the Bonds outstanding, together with indemnification of
the Trustee to its satisfaction therefor, shall proceed forthwith to protect and enforce its rights and the rights of the
Bondholders under the Bond Resolution by such suits, actions or proceedings as the Trustee, being advised by
counsel, shall deem expedient, including but not limited to:
(1)
Requiring the University to carry out its duties and obligations under the terms of the
Bond Resolution and under the Enabling Act;
(2)
Suit upon all or any part of the Bonds;
(3)
Civil action to require the University to account as if it were the trustee of an express
trust for the Bondholders;
(4)
Civil action to enjoin any acts or things which may be unlawful or in violation of the
rights of the Bondholders; and
(5)
Enforcement of any other right of the Bondholders conferred by law or by the Bond
Resolution including the right to make proper application to a court of competent jurisdiction for the
appointment of a receiver to administer and operate the Facilities. Such receiver shall be given full power
to fix rentals and charges for the Facilities, sufficient to provide for the payment of principal of Bonds and
the interest thereon, and for the payment of the expenses of operating and maintaining such Facilities, and
to apply the income and revenues of such Facilities to the payment of principal of such Bonds and the
interest thereon.
B-15
Regardless of the happening of an Event of Default, the Trustee, if requested in writing by the Holders of
not less than 25% in aggregate principal amount of the Bonds then outstanding, shall, upon being indemnified to its
satisfaction therefor, institute and maintain such suits and proceedings as it may be advised by counsel shall be
necessary or expedient:
(1)
To prevent any impairment of the security under the Bond Resolution by any acts which
may be unlawful or in violation of the Bond Resolution; or
(2)
To preserve or protect the interests of the Bondholders, provided that such request is in
accordance with law and the provisions of the Bond Resolution and, in the sole judgment of the Trustee, is
not unduly prejudicial to the interests of the Holders of Bonds not making such request.
The Series 2015B Resolution
Bonds issued pursuant to the Bond Resolution are to be authorized by the adoption of a Series Resolution.
The Series 2015B Resolution sets forth the purposes for which the Series 2015B Bonds are being issued. The Series
2015B Resolution further determines, or delegates the power to determine, among other things, the date of the issue,
the interest rates, maturity schedule, principal and interest payment dates and redemption provisions. The Series
2015B Resolution further provides for the manner in which the Series 2015B Bonds will be sold and awarded and
authorizes the distribution of the Preliminary Official Statement and a final Official Statement. The Series 2015B
Resolution also adopts the form of the Series 2015B Bonds and the form of the Continuing Disclosure Undertaking
and authorizes certain officials of the University to execute the Series 2015B Bonds.
The University covenants in the Series 2015B Resolution to comply with all provisions of Section 148(f) of
the Code pertaining to the rebate of certain arbitrage earnings on the proceeds of the Series 2015B Bonds. As
discussed under the heading “LEGAL MATTERS-Tax Exemption and Other Tax Matters” therein, failure by the
University to comply with the provisions of said Section 148(f) may result in the income taxation of interest on the
Series 2015B Bonds, retroactive to the date of their issuance.
B-16
APPENDIX C
FORM OF OPINION OF BOND COUNSEL
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX C
FORM OF OPINION OF BOND COUNSEL
December 18, 2015
Board of Trustees of Clemson University
Clemson, South Carolina
Re:
$191,000,000 Higher Education Revenue Bonds, Series 2015B, of Clemson University, South
Carolina
Ladies and Gentlemen:
As Bond Counsel to Clemson University, South Carolina (the “University”), we have examined a certified
copy of the Transcript of Proceedings and other proofs submitted to us, including the Constitution and statutes of the
State of South Carolina, in relation to the issuance of the $191,000,000 Higher Education Revenue Bonds, Series
2015B, of Clemson University, South Carolina, dated December 1, 2015 (the “Series 2015B Bonds”). The Bonds
are issued by the University pursuant to a bond resolution (the “Bond Resolution”) adopted by the Board of Trustees
of Clemson University (the “Board of Trustees”) on December 1, 1997, and a series resolution adopted by the Board
of Trustees on April 12, 2013, as amended July 17, 2015 (the “Series 2015 Resolution”, and together with the Bond
Resolution, the “Resolution”), and under and in full compliance with the Constitution and statutes of the State of
South Carolina, including particularly Title 59, Chapter 147 of the Code of Laws of South Carolina, 1976, as
amended, in order to obtain funds which will be used to: (i) defray the costs of planning, developing and equipping a
mixed-use facility encompassing additional student housing facilities on the campus of the University, as well as
dining, bookstore, retail, and other auxiliary facilities and services related thereto on the campus of the University,
known as the Douthit Hills project; and (ii) pay costs of issuance of the Series 2015B Bonds.
The Series 2015B Bonds will bear interest from December 1, 2015, and will be initially payable on May 1,
2016 and semiannually thereafter on each November 1 and May 1 in the respective principal amounts and at the
interest rates per annum as set forth in the Official Statement with respect to the Series 2015B Bonds dated
December 9, 2015 (the “Official Statement”).
The Series 2015B Bonds are issued in fully registered form, in the denomination of $5,000 or any whole
multiple thereof, not exceeding the principal amount of the Series 2015B Bonds maturing in each year. The Series
2015B Bonds maturing on or prior to May 1, 2026 are not subject to redemption prior to their stated maturities. The
Series 2015B Bonds maturing after May 1, 2026, are subject to redemption upon 30 days written notice, in whole or
in part, at any time in any order of maturity to be determined by the University, on or after May 1, 2026, at par plus
accrued interest to the date fixed for redemption.
The Series 2015B Bonds are numbered from R-1 upwards in such fashion as to maintain a proper record
thereof.
The Series 2015B Bonds are being issued on a parity with certain other Series of Bonds currently
outstanding and to be outstanding upon the issuance of the Series 2015B Bonds, as described herein. Further bonds
on a parity with the Series 2015B Bonds in all respects (“Additional Bonds”) may be issued under the conditions
prescribed in the Resolution.
Based on the foregoing, we are, as of the date hereof, of the opinion, under existing law, as follows:
1.
The Series 2015B Bonds are valid and binding obligations of the University, and are payable, both
as to principal and interest, solely from the Net Revenues (as defined in the Bond Resolution) derived from the
operation of the Facilities, and from the Additional Funds (as such terms are defined in the Bond Resolution). The
Series 2015B Bonds do not constitute a general indebtedness of the University or an indebtedness of any kind of the
State of South Carolina.
C-1
2.
The pledge of the Net Revenues and the Additional Funds made to secure the Series 2015B Bonds
has priority over all pledges heretofore or hereafter made, except the pledges (on a parity with the pledges securing
the Series 2015B Bonds) made to secure (i) the outstanding installments of the $22,130,000 original principal
amount Revenue Bonds, Series 2005, of the University, the outstanding installments of the $21,200,000 original
principal amount Refunding Revenue Bonds, Series 2012, of the University, and the outstanding installments of the
$90,285,000 original principal amount Higher Education Revenue Bonds, Series 2015, of the University; and (ii)
any Additional Bonds, if such Additional Bonds be issued in the manner and under the conditions prescribed by the
Bond Resolution.
3.
The Resolution has been duly and lawfully adopted by the Board of Trustees, is of full force and
effect, and constitutes a binding and enforceable obligation of the University. The Series 2015B Bonds have been
duly and lawfully authorized and executed by the University and are valid and binding upon, and enforceable
against, the University except as described below. The pledge of Net Revenues and Additional Funds made pursuant
to the Resolution constitutes a valid pledge thereof, subject to the application of such funds to the purposes, and
pursuant to the conditions, set forth in the Resolution. Upon the execution, authentication, and delivery thereof, the
Series 2015B Bonds will be duly and validly authorized and issued in accordance with the Resolution.
4.
Interest on the Series 2015B Bonds (including any original issue discount properly allocable to an
owner thereof) is excludable from gross income of the registered owners thereof for federal income tax purposes and
is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and
corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed
on certain corporations (as defined for federal income tax purposes), interest on the Series 2015B Bonds is taken
into account in determining adjusted current earnings. The opinions set forth above are subject to the condition that
the University comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that
must be satisfied subsequent to the issuance of the Series 2015B Bonds in order that interest thereon be (or continue
to be) excludable from gross income for federal income tax purposes. Failure to comply with certain of such
requirements may cause interest on the Series 2015B Bonds to be included in gross income for federal income tax
purposes retroactive to the date of issuance of the Series 2015B Bonds. The University has covenanted to comply
with such requirements. We express no opinion regarding other federal tax consequences arising with respect to the
Series 2015B Bonds.
5.
The Series 2015B Bonds and the interest thereon (including any original issue discount properly
allocable to an owner thereof) are exempt from all state, county, school district, municipal and all other taxes or
assessments of the State of South Carolina, except inheritance, estate, transfer or certain franchise taxes.
Furthermore, it should be noted that Section 12-11-20 of the Code of Laws of South Carolina, 1976, as amended,
imposes upon every bank engaged in business in South Carolina a fee or franchise tax computed on the entire net
income of such bank which includes interest paid on the Series 2015B Bonds.
We have been advised on this date that there is no litigation threatened or pending, which, in any manner,
affects the validity of the Series 2015B Bonds.
It is to be understood that the rights of the holders of the Series 2015B Bonds and the enforceability of the
Series 2015B Bonds and the Resolution may be subject to bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting creditors’ rights heretofore or hereafter enacted and that their enforcement may also be
subject to the exercise of judicial discretion in appropriate cases.
We express no opinion herein regarding the accuracy, adequacy or completeness of the Official Statement
or regarding the perfection or priority of the lien on the Net Revenues, the Additional Funds or other funds created
under the Bond Resolution (or any other document or instrument mentioned herein). This opinion is given as of the
date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances
that may hereafter come to our attention or any changes in law that may hereafter occur.
Very truly yours,
Pope Flynn, LLC
C-2
APPENDIX D
FORM OF
CONTINUING DISCLOSURE UNDERTAKING
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX D
CONTINUING DISCLOSURE UNDERTAKING
This Continuing Disclosure Undertaking (this “Disclosure Undertaking”) is executed and delivered this 18th
day of December, 2015, by Clemson University (the “Issuer”) in connection with the issuance of the Issuer’s
$191,000,000 Higher Education Revenue Bonds, Series 2015B (the “Series 2015B Bonds”). The Series 2015B
Bonds are being issued pursuant to a Bond Resolution adopted by the Board of Trustees (the “Board of Trustees”) of
the Issuer on December 1, 1997 (the “Bond Resolution”), and a series resolution adopted by the Board of Trustees on
April 12, 2013, as amended on July 17, 2015 (the “Series 2015 Resolution” and, together with the Resolution, as
amended and supplemented, the “Resolution”). The Issuer covenants and agrees as follows:
Section 1. Purpose of the Disclosure Undertaking. This Disclosure Undertaking is being executed and
delivered by the Issuer for the benefit of the holders and Beneficial Owners of the Series 2015B Bonds and in order to
assist the Participating Underwriters in complying with the U.S. Securities and Exchange Commission (the “SEC”)
Rule 15c2-12(b)(5).
Section 2. Definitions. In addition to the definitions set forth in the Resolution or elsewhere in this Disclosure
Undertaking, which apply to any capitalized terms used in this Disclosure Undertaking, the following capitalized terms
shall have the following meanings:
“Annual Report” means the annual report provided by the Issuer pursuant to, and as described in, Sections 3
and 4 of this Disclosure Undertaking.
“Beneficial Owner” means any person which (a) has the power, directly or indirectly, to vote or consent with
respect to, or to dispose of ownership of, any Series 2015B Bonds (including persons holding Series 2015B Bonds
through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Series 2015B Bonds for
federal income tax purposes.
“Dissemination Agent” means any person designated in writing by the Issuer and which has filed with the
Issuer a written acceptance of such designation.
“EMMA” means the Electronic Municipal Market Access system described in SEC Release No. 34-59062 (or
any successor electronic information system) and maintained by MSRB as the sole repository for the central filing of
electronic disclosure pursuant to the Rule.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Undertaking.
“MSRB” means the Municipal Securities Rulemaking Board or any other entity designated or authorized by
the SEC to receive reports pursuant to the Rule. Unless otherwise designated by MSRB or the SEC, filings with the
MSRB are to be made through EMMA.
“Official Statement” means the Official Statement dated December 9, 2015, prepared in connection with the
Series 2015B Bonds.
“Participating Underwriter” means any of the original underwriters of the Series 2015B Bonds required to
comply with the Rule in connection with the offering of the Series 2015B Bonds.
“Rule” means Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the
same may be amended from time to time.
“State” means the State of South Carolina.
Section 3. Provision of Annual Reports. (a) The Issuer shall, not later than February 1 of each year,
commencing with the report for the fiscal year ended June 30, 2016, provide to the MSRB an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Undertaking. Not later than 15 business days prior to
said date, the Issuer shall provide the Annual Report to the Dissemination Agent, if other than the Issuer. The Annual
Report may be submitted as a single document or as separate documents comprising a package, and may crossD-1
reference other information as provided in Section 4 of this Disclosure Undertaking; provided, however, that the
audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report, and later
than the date required for the filing of the Annual Report if they are not available by that date. If the Issuer’s fiscal year
changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(a) hereof.
(b)
The Annual Report shall be submitted to the MSRB either through a web-based electronic
submission interface or through electronic computer-to-computer data connections with EMMA in accordance with
the submission process, document format and configuration requirements established by the MSRB. The Annual
Report shall also include all related information required by the MSRB to accurately identify: (i) the category of
information being provided; (ii) the period covered by the Annual Report; (iii) the issues or specific securities to
which the Annual Report is related (including CUSIP number, Issuer name, state, issue description/securities name,
dated date, maturity date, and/or coupon rate); (iv) the name of any obligated person other than the Issuer; (v) the
name and date of the document; and (vi) contact information for the Dissemination Agent or the Issuer’s submitter.
(c)
If the Issuer is unable to provide to the MSRB an Annual Report by the date required in subsection
(a) above, the Issuer shall, in a timely manner, send or cause to be sent to the MSRB, a notice in substantially the form
attached hereto as Exhibit A.
(d)
In the event that there is a Dissemination Agent, then not later than fifteen (15) business days prior to
each due date, the Issuer shall provide the Annual Report to the Dissemination Agent for distribution to the MSRB. In
connection with this distribution of the Annual Report, the Dissemination Agent, if any, shall file a report with the
Issuer certifying that the Annual Report has been provided pursuant to this Disclosure Undertaking, and stating the date
it was provided to the MSRB.
Section 4. Contents of Annual Reports. The Annual Report shall contain or incorporate by reference the
following:
(a)
The Issuer’s complete audited financial statements for the preceding fiscal year prepared in
accordance with accounting principles generally accepted within the United States of America as promulgated to
apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Issuer’s
audited financial statements are not available by the time the Annual Report is required to be filed pursuant to
Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial
statements contained in the Official Statement, and the audited financial statements shall be provided to the MSRB
in the same manner as the Annual Report when they become available;
(b)
Updates of the financial information and operating data as of a date not earlier than the end of the
preceding fiscal year for the type of information included under the headings in the Official Statement:
(i)
(ii)
(iii)
(iv)
“THE FACILITIES – Description of the Facilities,”
“SUMMARY OF NET REVENUES,”
“ADDITIONAL FUNDS – University Fee Receipts,” and
“OUTSTANDING REVENUE BOND DEBT – Debt Service Coverage”.
The Annual Report may consist of one or more documents. Any or all of the items listed above may be
included by specific reference to other documents, including official statements of debt issues of the Issuer, which have
been made available to the public on EMMA. The Issuer shall clearly identify each such other document so included
by reference.
Section 5. Reporting of Significant Events. (a) The Issuer shall give or cause to be given notice of the
occurrence of any of the following events with respect to the Series 2015B Bonds in a timely manner not later than ten
business days after the occurrence of the event:
(i)
principal and interest payment delinquencies;
(ii)
non-payment related defaults, if material;
D -2
(iii)
unscheduled draws on debt service reserves reflecting financial difficulties;
(iv)
unscheduled draws on credit enhancements reflecting financial difficulties;
(v)
substitution of credit or liquidity providers, or their failure to perform;
(vi)
adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices of
determinations with respect to the tax status of the Series 2015B Bonds, or other material events affecting the
tax status of the Series 2015B Bonds;
(vii)
modifications to rights of security holders, if material;
(viii)
Bond calls, if material and tender offers;
(ix)
defeasances;
(x)
release, substitution, or sale of property securing repayment of the Series 2015B Bonds, if
material;
(xi)
rating changes;
(xii)
bankruptcy, insolvency, receivership or similar event of any obligated person, which event
is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or
similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the obligated person, or if such jurisdiction has been
assumed by leaving the existing governing body and officials or officers in possession but subject to the
supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the obligated person;
(xiii)
the consummation of a merger, consolidation or acquisition involving an obligated person
or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(xiv)
appointment of a successor or additional trustee or the change of name of trustee, if
material.
Section 6. Format for Filing With the MSRB. All documents provided to the MSRB pursuant to this
Disclosure Undertaking shall be submitted in electronic format and shall identify the Series 2015B Bonds by name and
CUSIP number or shall be accompanied by such identifying information as described from time to time by the MSRB.
Section 7. Termination of Reporting Obligation. This Disclosure Undertaking shall remain in full force and
effect until such time as all principal, redemption premiums, if any, and interest on the Series 2015B Bonds shall have
been paid in full or the Series 2015B Bonds shall have otherwise been paid or legally defeased; provided, however, that
if the Rule (or any successor provision) shall be amended, modified, or changed so that all or any part of the
information currently required to be provided thereunder shall no longer be required to be provided thereunder, then
such information shall no longer be required to be provided hereunder; and provided further that if and to the extent the
Rule (or any successor provision), or any provision thereof, shall be declared by a court of competent and final
jurisdiction to be, in whole or in part, invalid, unconstitutional, null and void, or otherwise inapplicable to the Series
2015B Bonds, then the information required to be provided hereunder, insofar as it was required to be provided by a
provision of the Rule so declared, shall no longer be required to be provided hereunder. Upon any legal defeasance, the
Issuer shall electronically file notice of such defeasance with the MSRB, and such notice shall state whether the Series
2015B Bonds have been defeased to maturity or to redemption and the timing of such maturity or redemption.
D -3
Section 8. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination
Agent to assist in its carrying out its obligations under this Disclosure Undertaking, and may discharge any such
Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not
be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure
Undertaking.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Undertaking, the
Issuer may amend this Disclosure Undertaking, and any provision of this Disclosure Undertaking may be waived,
provided that the following conditions are satisfied:
(a)
If the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a) hereof, it may only be
made in connection with a change in circumstances that arises from a change in legal requirements or change in law, or
change in the identity, nature or status of an obligated person with respect to the Series 2015B Bonds, or the type of
business conducted;
(b)
This Disclosure Undertaking, as amended or taking into account such waiver, would, in the opinion
of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original
issuance of the Series 2015B Bonds, after taking into account any amendments or interpretations of the Rule, as well as
any change in circumstances; and
(c)
The amendment or waiver does not, in the opinion of nationally recognized bond counsel, materially
impair the interests of the holders or Beneficial Owners of the Series 2015B Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Undertaking, the Issuer shall
describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the
reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on
the presentation) of financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such
change shall be given by filing with the MSRB and (ii) the Annual Report for the year in which the change is made
should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial
statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former
accounting principles.
Section 10. Additional Information. Nothing in this Disclosure Undertaking shall be deemed to prevent the
Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure
Undertaking or any other means of communication, or including any other information in any Annual Report or notice
of occurrence of a Listed Event, in addition to that which is required by this Disclosure Undertaking. If the Issuer
chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that
which is specifically required by this Disclosure Undertaking, the Issuer shall have no obligation under this Disclosure
Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Listed
Event or any other event required to be reported.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure
Undertaking, any holder or Beneficial Owner of the Series 2015B Bonds may take such actions as may be necessary
and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply
with its obligations under this Disclosure Undertaking; provided, however, that any such action may be instituted only
in the federal or State courts located in Columbia, South Carolina. A default under this Disclosure Undertaking shall
not be deemed an event of default under the Resolution, and the sole remedy under this Disclosure Undertaking in the
event of any failure of the Issuer to comply with this Disclosure Undertaking shall be an action to compel performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have
only such duties as are specifically set forth in this Disclosure Undertaking, and in any separate written agreement
between the Issuer and the Dissemination Agent.
D -4
Section 13. Beneficiaries. This Disclosure Undertaking shall inure solely to the benefit of the Issuer, the
Dissemination Agent, the Participating Underwriters and holders and Beneficial Owners from time to time of the Series
2015B Bonds, and shall create no rights in any other person or entity. This Disclosure Undertaking is not intended to
create any monetary rights on behalf of any person.
CLEMSON UNIVERSITY
By: _____________________________
Its: _____________________________
D -5
EXHIBIT A
NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD
OF FAILURE TO FILE ANNUAL REPORT
Issuer:
Clemson University
Obligations:
$191,000,000 Higher Education Revenue Bonds, Series 2015B
Date of Issuance: December 18, 2015
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above-named
Series 2015B Bonds as required by the Resolution adopted on April 12, 2013, as amended on July 17, 2015. The
Issuer anticipates that the Annual Report will be filed by____________________.
CLEMSON UNIVERSITY
By: _____________________________
Its: _____________________________
Date: _________, ______
D -6
APPENDIX E
DTC AND BOOK-ENTRY-ONLY SYSTEM
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX E
THE FOLLOWING INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY (“DTC”) AND
DTC’S BOOK-ENTRY ONLY SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE UNIVERSITY
BELIEVES TO BE RELIABLE, BUT THE UNIVERSITY TAKES NO RESPONSIBILITY FOR THE
ACCURACY THEREOF.
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the
Higher Education Revenue Bonds, Series 2015B (the “Series 2015B Bonds”) of the University. The Series 2015B
Bonds will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee) or
such other name as may be requested by an authorized representative of DTC. One fully-registered bond will be
issued for each maturity of the Series 2015B Bonds, each in the aggregate principal amount of such maturity, and
will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organised under the New
York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues,
corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s
participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic computerised bookentry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement
of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks,
trust companies, clearing corporations, and certain other organisations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities
Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC
is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear
through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect
Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on
file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of the Series 2015B Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Series 2015B Bonds on DTC’s records. The ownership interest of
each actual purchaser of each Series 2015B Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and
Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase.
Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as
well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Series 2015B Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2015B
Bonds, except in the event that use of the book-entry system for the Series 2015B Bonds is discontinued.
To facilitate subsequent transfers, all Series 2015B Bonds deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorised representative of DTC. The deposit of Series 2015B Bonds with DTC and their registration in the name
of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Series 2015B Bonds; DTC’s records reflect only the identity of
the Direct Participants to whose accounts such Series 2015B Bonds are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Series 2015B Bonds may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Series 2015B Bonds, such as redemptions, tenders, defaults, and
E-1
proposed amendments to any of the resolutions under which any Series 2015B Bonds is issued. For example, the
Beneficial Owners of Series 2015B Bonds may wish to ascertain that the nominee holding the Series 2015B Bonds
for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial
Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be
provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Series 2015B Bonds of a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to
be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series
2015B Bonds unless authorised by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the University as soon as possible after the record date. The Omnibus
Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Series 2015B
Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption payments and principal and interest payments on the Series 2015B Bonds will be made to
Cede & Co., or such other nominee as may be requested by an authorised representative of DTC. DTC’s practice is
to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
University or the Paying Agent on the payable date in accordance with their respective holdings shown on DTC’s
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street
name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the University,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption
payments and principal and interest payments to Cede & Co. (or such other nominee as may be requested by an
authorised representative of DTC) is the responsibility of the University or the Paying Agent, disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to any Series 2015B Bonds at any
time by giving reasonable notice to the University and the Paying Agent. Under such circumstances, in the event
that a successor depository is not obtained, bond certificates are required to be printed and delivered.
The University may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, bond certificates will be printed and delivered to DTC.
NEITHER THE UNIVERSITY NOR THE PAYING AGENT IS RESPONSIBLE OR LIABLE FOR THE
FAILURE OF ANY DIRECT PARTICIPANTS OR ANY INDIRECT PARTICIPANTS TO MAKE ANY
PAYMENT OR GIVE ANY NOTICE TO A BENEFICIAL OWNER WITH RESPECT TO THE SERIES 2015B
BONDS OR ANY ERROR OR DELAY RELATING THERETO.
Neither the University nor the Paying Agent gives any assurances that DTC, DTC Participants, or Indirect
Participants will distribute to the Beneficial Owners of the Series 2015B Bonds (i) payments of principal, premium,
if any, and interest, with respect to the Series 2015B Bonds, (ii) confirmation of beneficial ownership interests in the
Series 2015B Bonds, or (iii) redemption or other notices sent to DTC or Cede & Co., its nominee, as registered
owner of the Series 2015B Bonds, or that they will do so on a timely basis, or that DTC, DTC Participants, or
Indirect Participants will serve or act in the manner described in this Official Statement.
All capitalized terms not otherwise defined in this Appendix shall have the meaning ascribed to such term
in this Official Statement.
E-2
CLEMSON UNIVERSITY, SOUTH CAROLINA • HIGHER EDUCATION REVENUE BONDS, SERIES 2015B