University of Oregon 2019 Annual Financial Report slide image

University of Oregon 2019 Annual Financial Report

Management's Discussion and Analysis For the Year Ended June 30, 2019 (dollars in thousands) Deferred outflows decreased by $42,180, or 27 percent, and deferred inflows increased by $566, or 21 percent, primarily due to the impacts of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions- An Amendment of GASB Statement No. 27 and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Refer to Notes 13. Employee Retirement Plans, 14. Other Postemployment Benefits, and the Required Supplementary Information for additional information. Total Net Position As illustrated by the following graph, the makeup of net position changed between fiscal years 2019, 2018, and 2017. $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 -$200,000 2019 2018 2017 Restricted- Expendable Unrestricted Net Investme Capital Asset Comparison of fiscal year 2019 to fiscal year 2018 ⚫ Net investment in capital assets increased $81,460, or 10 percent. • Restricted expendable net position increased by $29,809, or 34 percent. Net position relating to the funding of capital projects increased by $49,297, or 99 percent, as a result of a number of new construction and improvement projects in fiscal year 2019, which was offset by a decrease in student loan net position of $18,226, or 70 percent, related to termination of the Perkins loan program. • Unrestricted net position decreased $19,531, or 55 percent. Comparison of fiscal year 2018 to fiscal year 2017 ⚫ Net investment in capital assets increased $9,141 or 1 percent. • Restricted expendable net position increased by $11,603, or 15 percent. Net position relating to the funding of capital projects increased by $6,661, or 15 percent, as a result of a number of new construction and improvement projects in fiscal year 2018. ⚫ Unrestricted net position decreased $43,500, or 534 percent primarily due to the impact of GASB 68 and GASB 75. Statement of Revenues, Expenses, and Changes in Net Position (SRE) Due to the classification of certain revenues as nonoperating revenue, the UO shows a net operating loss. State general fund appropriations, nonexchange grants, and noncapital gifts, although considered nonoperating revenue under GASB Statement No. 35, Basic Financial Statements-and Management's Discussion and Analysis—for Public Colleges and Universities-An Amendment of GASB Statement No. 34 and reflected accordingly in the nonoperating section of the SRE, are used solely for operating purposes. The following summarizes the revenue and expense activity of the UO: Condensed Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, Operating Revenues Operating Expenses Operating Loss 2017 2019 2018 $ 744,160 967,829 (223,669) $ 740,103 955,367 (215,264) $ 713,691 920,938 (207,247) Nonoperating Revenues, Net of Expenses 191,492 158,757 161,034 Capital Additions and Special Items 123,915 48,355 Increase (Decrease) in Net Position 91,738 (8,152) 78,112 31,899 849,550 872,306 840,407 (14,604) 849,550 857,702 $ 941,288 $ 849,550 Net Position, Beginning of Year Adjustments to Beginning Net Position Net Position, Beginning of Year (Restated) Net Position, End of Year 840,407 $ 872,306 For fiscal year 2019, net position increased by $91,738, or 11 percent, to $941,288. For fiscal year 2018, net position decreased by $22,756, or 3 percent, to $849,550. 10 University of Oregon
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