University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
Net Investment in Capital Assets
Net investment in capital assets represents the total
investment in capital assets, net of accumulated
depreciation, amortization, and outstanding debt
obligations related to those capital assets.
Restricted Expendable
Restricted-expendable includes resources which the
UO is legally or contractually obligated to spend in
accordance with restrictions stipulated by external
parties. The three types of restricted-expendable net
positions are: gifts, grants, and contracts; student loans;
and capital projects
Unrestricted
Unrestricted net position are resources that may be used
at the discretion of the UO's management and the BOT.
When an expense is incurred that can be paid using
either restricted or unrestricted resources, restricted
resources are generally applied first.
M. Income Taxes
The UO is treated as a governmental entity for tax
purposes. As such, the UO is generally not subject
to federal and state income taxes. However, the UO
remains subject to income taxes on any income that is
derived from a trade or business regularly carried on
and not in furtherance of the purpose for which it was
granted exemption from income taxes. No income tax
is payable because there is no net unrelated business
income for the UO.
N. Revenue and Expenses
The UO has classified its revenues and expenses as
either operating or nonoperating according to the
following criteria:
Operating revenues and expenses generally have
the characteristics of exchange transactions. These
transactions can be defined as an exchange in which two
or more entities both receive and sacrifice value, such
as purchases and sales of goods or services. Examples
of operating revenues include student tuition and fees,
sales and services associated with auxiliary enterprises,
most federal, state, and local grants and contracts,
and other operating revenues. Examples of operating
expenses include employee compensation and benefits,
scholarships and fellowships, utilities, supplies and
other services, professional fees, and depreciation.
Nonoperating revenues and expenses generally have
the characteristics of nonexchange transactions. In a
nonexchange transaction, the UO receives value without
directly giving equal value in exchange. Examples of
nonoperating revenues include state appropriations,
nonexchange grants, gifts, and contributions.
Nonoperating expenses are defined in GASB Statement
No. 9, Reporting Cash Flows of Proprietary and
Nonexpendable Trust Funds and Governmental Entities
That Use Proprietary Fund Accounting, and GASB 34.
Examples of nonoperating expenses include interest on
capital asset related debt.
O. Allowances
Student tuition and fees, and campus housing revenues
included in auxiliary enterprise revenues, are reported
net of scholarship allowances. A scholarship allowance
is the difference between the university's stated rates
and charges and the amounts actually paid by students
and/or third parties making payments on behalf of the
students. Under this approach, scholarships awarded
by the university are considered as reductions in
tuition and fee revenues rather than expenses.
The UO has two types of scholarship allowances
that net into tuition and fees. Tuition and housing
waivers, provided directly by the UO, amounted to
$45,761 and $40,375 for the fiscal years ended 2019
and 2018, respectively. Revenues from financial aid
programs (e.g., Pell Grants, Supplemental Educational
Opportunity Grants, and Oregon Opportunity Grants)
used for paying student tuition and fees and campus
housing were estimated to be $42,468 and $41,760 for
the fiscal years ended 2019 and 2018, respectively.
Bad debt expense related to student accounts is also
reported as an allowance against operating revenues
and was estimated to be $1,985 and $2,054 for the
fiscal years ended 2019 and 2018, respectively.
P. Federal Student Loan Programs
The UO receives proceeds from the Federal Direct
Student Loan Program (FDSLP). Since the UO
transmits these grantor-supplied monies without
having administrative or direct financial involvement
in the program, the activity of the FDSLP is not
reported in operations. The UO disbursed federal
student loans in the amount of $150,538 and $148,510
for the fiscal years ended 2019 and 2018, respectively.
Q. Funds Held in Trust by Others
Funds held in trust by others, for which the UO is an
income beneficiary, are not recorded in the financial
records. The approximate value of such trust funds
at June 30, 2019 and 2018, was $764 and $773,
respectively.
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