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Audit: UPR dragging deficit of $2.36 billion


An audited financial statement for the University of Puerto Rico for fiscal year 2020-2021 conducted by Ernst & Young was published Thursday.

By The Star Staff


The University of Puerto Rico (UPR) is dragging a deficit of $2.36 billion, according to an audited financial statement for fiscal year (FY) 2020-2021 conducted by Ernst & Young that was published Thursday.


“The University’s net deficit position amounted to approximately $2.36 billion, $2.37 billion, and $1.94 billion as of June 30, 2021, 2020 and 2019, respectively, a decrease of approximately $7.7 million or less than 1% in fiscal year 2021 and an increase of approximately $428.9 million or 22% in fiscal year 2020, when compared with the prior year balance deficit positions,” the report notes.


The report also said UPR’s cash position has been deteriorating since June 30, 2019 because of the COVID-19 pandemic. The university’s cash position amounted to some $145.6 million, $233.9 million and $317.1 million as of June 30, 2021, 2020 and 2019, respectively, a decrease of approximately $88.3 million, or 38%, in fiscal year 2021 and a decrease of some $83.2 million, or 26%, in fiscal year 2020 for a total decrease of some $171.5 million, or 54%, when compared with UPR’s cash position as of June 30, 2021 and with its cash position as of June 30, 2019, a year before the COVID-19 pandemic.


As of June 30, 2021, UPR had total assets of $1.44 billion, total deferred outflows of resources of $316.5 million, total liabilities of $3.71 billion, total deferred inflows of resources of $416.2 million and net deficit of $2.36 billion. As of June 30, 2020, the university had total assets of $1.37 billion, total deferred outflows of resources of $640.8 million, total liabilities of $4.34 billion, total deferred inflows of resources of $41.9 million and net deficit of $2.37 billion. As of June 30, 2019, the University had total assets of $1.49 billion, total deferred outflows of resources of $648.0 million, total liabilities of $4.03 billion, total deferred inflows of resources of $45.6 million and net deficit of $1.94 billion.


The most significant fluctuations in the statements of net position came from the changes in the net pension liability, which amounted to approximately $2.72 billion, $3.32 billion, and $3.02 billion as of June 30, 2021, 2020 and 2019, respectively, decreased by some $595.5 million, or 18%, in fiscal year 2021 and increased by approximately $294.3 million, or 10%, in fiscal year 2020, when compared with the prior year balances. The change in the net pension liability in fiscal years 2021 and 2020 mainly resulted from the change in the discount rates used to calculate the total pension liability, the report said.


In fiscal year 2021, the total net nonoperating revenues, which amounted to $955.6 million, exceeded by some $7.7 million the operating loss, which amounted to $948.1 million. The decrease in the net operating loss of approximately $286.9 million, or 23%, in fiscal year 2021 was caused by the decrease in total operating expenses of approximately $168.2 million, or 11%, and the increase in total operating revenues of some $118.7 million, or 43%. In fiscal year 2020, the operating loss, which amounted to $1.23 billion, exceeded by approximately $428.9 million the total net nonoperating revenues, which amounted to $804.5 million, and the additions to term and permanent endowments, which amounted to $1.5 million. The increase in the net operating loss of some $193.1 million, or 19%, in fiscal year 2020 was caused by the decrease in total operating revenues of approximately $72.1 million, or 21%, and the increase in total operating expenses of some $120.9 million, or 9%. Total operating revenues amounted to $392.8 million, $274.1 million, and $346.2 million for the years ended June 30, 2021, 2020, 2019, respectively. Total operating revenues increased by approximately $118.7 million, or 43%, in fiscal year 2021 and decreased by $72.1 million, or 21%, in fiscal year 2020. In fiscal year 2021, operating revenue from governmental and nongovernmental grants and contracts increased from $121.1 million in fiscal year 2020 to $227.7 million in fiscal year 2021, an increase of some $106.6 million, or 88%.


UPR settled collections of accounts receivable outstanding with the Puerto Rico Department of Health for unpaid medical services of app $13.3 million provided by the faculty members of the Medical Sciences Campus of the University to the Commonwealth’s health reform program patients and other services.


It also settled a collection of accounts receivable from the Puerto Rico Medical Service Administration for unpaid contracted medical services of some $59 million provided by the faculty members of the Medical Sciences Campus of the University to the PRMSA, less accounts payable outstanding to the PRMSA of some $24.3 million for contracted medical services provided by the PRMSA to the university, for a net amount of approximately $34.7 million.

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