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.
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