University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
125 percent of expected claims. The provisions for
estimated health insurance claims include estimates of
the ultimate costs for both reported claims and claims
incurred but not reported.
Such claim reserves are based on the best data
available to PacificSource; however, these estimates are
subject to a significant degree of inherent variability.
Accordingly, there is at least a reasonable possibility
that a material change to the estimated reserves will
occur in the near term. Such estimates are continually
monitored and reviewed and reserves are adjusted; the
differences are reflected in current operations. The UO
paid $4,631 in claims during 2019. The estimate of a
claims reserve was $864 for 2019.
Student Health Insurance
Beginning Claims Reserve
Claims Incurred
Claims Payments
Estimated Incurred But
Not Reported (IBNR)
Ending Claims Reserve
2019
$ 518
2018
537
3,766
23
4,667
(4,631)
310
(4,056)
271
$ 864 $ 518
outcome of such matters will not have a material effect
on the financial statements.
The UO participates in certain federal grant programs.
These programs are subject to financial and compliance
audits by the grantor or its representative. Such audits
could lead to requests for reimbursement to the grantor
for expenditures disallowed under terms of the grant.
Management believes that disallowances, if any, will
not have a material effect on the financial statements.
The UO has established a risk management program
to manage any costs within the respective policy
deductibles. The insurance renewal process focused
on broadening coverage, reducing portfolio costs, and
continuing to monitor campus activities for potential
gaps in coverage.
The Safety and Risk Services unit
works strategically with campus partners to increase
risk awareness and safety and reduce injuries and
losses. Workers' Compensation claims are administered
by the State Accident Insurance Fund (SAIF).
Unemployment compensation claims are administered
by the Oregon Employment Division pursuant to ORS
657. The UO reimburses the Oregon Employment
Division on a quarterly basis for actual benefits paid.
Each year, resources are budgeted to pay current
charges. The amount of future benefit payments to
claimants and the resulting liability to the UO cannot
be reasonably determined at June 30, 2019.
16. Commitments and Contingent Liabilities
Outstanding commitments on construction projects
that are in the planning phase but not yet initiated,
as well as partially completed construction projects,
totaled approximately $228,448 and $313,995, at June
30, 2019 and 2018, respectively. These commitments
will be funded from gifts and grants, bond proceeds,
and other UO funds. Refer to the table accompanying
this note for projects relating to construction
commitments as of June 30, 2019. Multiple and distinct
projects within a single building (e.g., Phil and Penny
Knight Campus for Accelerating Scientific Impact) are
combined into a single line item for this table.
The UO is contingently liable in connection with
certain other claims and contracts, including those
currently in litigation, arising in the normal course of
its activities. Management is of the opinion that the
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