Oakwood University Financial Statement Questions

Submitted by Kia Thornton Gamble, a CPA and 
a member of Concerned Oakwoodites

For fiscal year ending 6/30/2023

1. Explain the organizational and business structure of Oakwood University, Oakwood Enterprise – R1 LLC, Oakwood Farms, LLC, and The Oakwood Community QALICB.  Which of these independent or auxiliary entities generate their own revenue?  Is there a budget or strategic plan available for each of them?

2. Cash ($15,773,623) – How much of this is restricted, if any?  There is only $8,129,420 under Oakwood University.

3. Accounts Receivable ($13,780,007) – 

   1. What is the $7M in AR that was eliminated?  What entity does it offset and where in the balance sheet is the offset?  There is no other entity that has a payable for this amount.

   2. AR increased by $2.7M (24%), approx. half of the increase for students.  $1.8M of the increase is for “other accounts receivable”, which now totals $5M.  None of this has been reserved.  What do these receivables relate to, what is aging, when do you expect to collect it.

4. Notes Receivable ($12,626,955)

   1. What was the nature of the loan to OU Huntsville Investment Fund?  Who is this entity?  Is this receivable related to the notes payable?

5. Investments ($24,042,200)/Loss on Investments ($5,366,341)

   1. Investments declined by $6.2 million in FY23 but increased by $6.8M in FY22.  What is the nature of the change in FMV in those years.  

6. Accounts Payable and accrued liabilities ($11,261,214)

   1. Is there a breakout between accounts payable and accruals with aging?  This will help in determining how much of this is current.

   2. Why has this balance increased by $3.9M or 53% while cash has increased.  Is there a reason that balances have not been settled?

7. Bonds and Notes Payable ($30,382,341) – This balance increased by $17.8M in FY23 and $3.4M in FY22.  The FY23 notes were for QALICB to purchase property.  Do these loans cover the costs of these capital projects, or will donor funds be needed to complete the projects?  How much is left in restricted assets to complete these projects.  Is this debt related to the note receivable balance?

8. Institution Awards ($9,443,020) and Scholarships ($10,278,754) - These combined total $19,721,774, which is an increase over the prior year of 44.7%. What is the reason the University has been increasing their support.  Are there donor funds or grants that have been given for this purpose?

9. Other Sources ($2,410,619) – What is the nature of this account?

10. Auxiliary Enterprises ($8,970,357)– What is the nature of this account? Do the auxiliary expenses offset this balance?

11. Independent Operations ($2,180,126)– What is the nature of this account? Do the independent operation expenses offset this balance?