University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
R. Use of Estimates
The preparation of financial statements in conformity
with GAAP requires management to make estimates
and assumptions that could affect the reported
amounts of assets and liabilities, revenues and
expenses, and the disclosure of contingent assets and
liabilities at the date of the financial statements. Actual
results could differ from those estimates.
S. Reclassification
Certain items previously reported in the financial
statements have been reclassified to conform to the
current financial statement presentation, but do not
alter the reported change in net position.
2. Restatement of Beginning Net Position
Cumulative Effect of Change in Accounting
Principle
The UO implemented GASB 75 in 2018. According
to the PERS it was not practical at the time for them
to determine the amounts of all deferred inflows of
resources and deferred outflows of resources related to
OPEB as of the beginning of the plan year. Because of
this, the cumulative effect of applying this Statement was
reported as a $14,604 reduction of 2018 beginning net
position.
July 1, 2017 (previously reported)
Cumulative Effect of GASB 75 Implementation
July 1, 2017 Restated
3. Cash and Investments
$ 857,702
fund. The OSTF is commingled with the State's short-
term funds. In seeking to best serve local governments
of Oregon, the Oregon Legislature established the
Oregon Short Term Fund Board, which is not registered
with the US Securities and Exchange Commission
as an investment company. The purpose of the
Board is to advise the Oregon State Treasury in the
management and investment of the OSTF. At the fiscal
years ended June 30, 2019 and 2018, the UO cash and
cash equivalents on deposit at the state treasury were
$170,652 and $194,078, respectively.
For the fiscal years ended June 30, 2019 and 2018,
the UO also had $88,457 and $89,264 on deposit in
financial depositories, respectively.
Cash and cash equivalents are classified as current and
noncurrent. Cash that is restricted in purpose from an
external source is reported on the financial statements
as restricted cash and as a non-current asset. The 2019
current portion, $165,217, includes $28,764 designated
for payroll-related liabilities. The noncurrent portion,
$97,156, includes $2,411 designated for UO student
groups and campus organizations.
The 2018 current portion, $192,556, includes $26,899
designated for payroll-related liabilities. The noncurrent
portion, $85,763, includes $3,154 designated for UO
student groups and campus organizations.
2018
$ 872,306
(14,604)
2019
Petty Cash
$
Commercial Bank Account
Oregon State Treasury
Money Market
347 $
90,085
170,652
198
82,813
194,078
$
1,289
262,373 $
1,230
278,319
Deposits and investment securities as described below
are exposed to various risks such as those associated
with credit, concentration of credit, custodial credit,
interest rate, and foreign currency exchange rate.
It is likely that the value of the investment securities
will fluctuate and such changes might affect the
amounts reported in the financial statements.
A. Cash and Cash Equivalents
The UO maintains the majority of its cash balances
on deposit with the state treasury in the OSTF.
Deposits in the OSTF are reported at fair value, which
approximates cost and its share value. The pool's fair
value is presented within cash and cash equivalents
in the SNP. The OSTF is administered by the Oregon
State Treasury. The OSTF is an open-ended no-load
diversified portfolio offered to any agency, political
subdivision, or public corporation of the State who by
law is made the custodian of, or has control of, any
For full disclosure regarding cash and investments
managed by the Oregon State Treasury, a copy of their
audited annual financial report may be obtained by
writing to the Oregon State Treasury, 350 Winter Street
NE, Suite 100, Salem, Oregon 97301-3896 or at:
www.oregon.gov/treasury/news-data/pages/default.aspx
Custodial Credit Risk-Deposits
Custodial credit risk is the risk that, in the event of
a financial institution failure, cash deposits will not
be returned to a depositor. The UO cash balances not
deposited with the state treasury are held in accounts
that are insured up to defined limits. The financial
health of depositories is reviewed at least annually.
Foreign Currency Risk-Deposits
Deposits in foreign currency run the risk of changing
value due to fluctuations in foreign exchange rates.
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