University of Oregon 2019 Annual Financial Report slide image

University of Oregon 2019 Annual Financial Report

Notes to the Financial Statements For the Year Ended June 30, 2019 (dollars in thousands) General revenue bonds are payable solely from and secured by a pledge of general revenues, less amounts required when due under the ADM. The amounts pledged were $654,130 and $653,059 as of June 30, 2019 and 2018, respectively. Pledged revenues include all tuition, fees, charges, rents, revenues, and other income (including interest and dividends) of the university, if and to the extent such funds are not restricted in their use by law, regulation, or contract. D. Oregon Department of Energy Loans The UO has entered into loan agreements with the State of Oregon Department of Energy (DOE) Small Scale Energy Loan Program (SELP) for energy conservation projects at the UO. The UO makes monthly loan payments (principal and interest) to the DOE in accordance with the loan agreements. SELP loans, with effective rates ranging from 3.87 percent to 5.50 percent, are due through fiscal year 2035. E. Defeased Debt The UO participates in a debt portfolio managed by the state and subject to the ADM. When fiscally appropriate, the state will sell bonds and use the proceeds to defease other debt. During the years ended June 30, 2019, and June 30, 2018, the state did not issue bonds to defease debt applicable to the UO. F. Financial Guarantees The UO is a state governmental entity, engaged only in business-type activities. As of June 30, 2019, no amounts have directly been paid by the state for the UO's financial obligations, both cumulatively and during the current reporting period. G. Employee Deferred Compensation The UO has a Section 415(m) excess benefit plan. Section 415(m) plans are unfunded plans and used as a means of deferring taxation on regular pension plan contributions by public employees in excess of the limitations otherwise imposed on the Oregon Public Universities Tax-Deferred Investment 403(b) plan. The 415(m) plan is offered to highly compensated employees whose contributions would otherwise be limited by Internal Revenue Code Section 415. H. Employee Termination Liabilities The UO is making liquidated damages payments to a former employee relating to early termination of their employment contract. The payout of this liability extends through fiscal year 2022. The liability is reported using a discounted present value of expected future benefit payments, with an annual discount rate of 2.75 percent. I. Capital Leases The UO has acquired assets under capital lease agreements. The cost of UO assets held under capital leases totaled $52,294 for both fiscal years ended June 30, 2019 and 2018. Accumulated depreciation of leased equipment and buildings totaled $5,300 and $4,028 for June 30, 2019 and 2018, respectively. The lease purchase (capital lease) contracts run through fiscal year 2046. The capital leases are recorded at the present value of the minimum future lease payments at the inception date. The weighted average of interest rates on capitalized leases is 4.59 percent. J. State and Local Government Rate Pool Prior to the formation of the PERS State and Local Government Rate Pool (SLGRP), the state and community colleges were pooled together in the State and Community College Pool (SCCP), and local government employers participated in the Local Government Rate Pool (LGRP). These two pools combined to form the SLGRP effective January 1, 2002, at which time a transitional pre-SLGRP pooled liability was created. The pre-SLGRP pooled liability is essentially a debt owed to the SLGRP by the SCCP employers. The balance of the pre-SLGRP pooled liability attributable to the state is being amortized over the period ending December 31, 2027. The liability is allocated by the state, based on salaries and wages, to all public universities, state proprietary funds, and the government-wide reporting fund in the Oregon Comprehensive Annual Financial Report. The UO paid interest expense on the liability in the amounts of $1,703 and $1,763 for June 30, 2019 and 2018, respectively. Principal payments of $1,980 and $1,611 were applied to UO's liability for June 30, 2019 and 2018, respectively. 2019 Annual Financial Report |35
View entire presentation