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) Introduction The following Management's Discussion and Analysis (MD&A) provides an overview of the financial position and activities of the University of Oregon for the fiscal years ended June 30, 2019, 2018, and 2017. The UO's primary campus is in Eugene, but programs are also offered in Portland, at the Oregon Institute of Marine Biology in Charleston, and at the Pine Mountain Observatory outside of Bend, all in the state of Oregon. Annual Full Time Equivalent (FTE) Student Enrollment Summary 2019 2018 2017 2016 Annual FTE 22,811 22,964 23,358 23,596 2015 23,728 Understanding the Financial Statements The MD&A is intended to foster a greater understanding of the UO's financial activities. Since this presentation includes summarized formats, it should be read in conjunction with the financial statements, which have the following six components: The Report of Independent Auditors presents an unmodified opinion rendered by an independent certified public accounting firm, Moss Adams LLP, on the fairness in presentation (in all material respects) of the financial statements. Statement of Net Position (SNP) presents a snapshot of the UO's assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position under the accrual basis of accounting at the end of each fiscal year presented. The SNP helps the reader understand the types and amounts of assets available to support operations, how much the UO owes to vendors and bondholders, and the UO's net position categorized by its status as restricted or unrestricted. Changes in net position that occur over time indicate improvement or decline in the UO's financial condition. Statement of Revenues, Expenses, and Changes in Net Position (SRE) presents the UO's revenues and expenses categorized among operating, nonoperating, and other related activities. The SRE reports the UO's results for each fiscal year presented. Statement of Cash Flows (SCF) provides information about the UO's sources (receipts) and uses (payments) of cash during the fiscal year. The SCF classifies sources and uses of cash into four categories, and assists in determining whether the UO has the ability to meet its obligations as they come due. 8 University of Oregon Notes to the Financial Statements (Notes) provide additional information to clarify and expand on the financial statements. The Component Unit, comprised of a supporting foundation, the University of Oregon Foundation, is discretely presented in the UO financial statements and in Note 3. Cash and Investments and Note 18. University Foundation. The MD&A provides an objective analysis of the UO's financial activities based on currently known facts, decisions, and conditions. The MD&A discusses the current results in comparison to the two previous fiscal years. Unless otherwise stated, all years refer to the fiscal year ended June 30. Statement of Net Position The term "Net Position" refers to the difference between (a) combined assets and deferred outflows of resources, and (b) combined liabilities and deferred inflows of resources, and is an indicator of the UO's current financial condition. Changes in net position that occur over time indicate improvement or decline in this condition. The following summarizes the UO's assets and deferred outflows of resources, liabilities and deferred inflows of resources, and net position: Condensed Statement of Net Position As of June 30, Assets: Current Assets Noncurrent Assets. Capital Assets, Net Total Assets Deferred Ouflows of Resources Total Assets and Deferred Outflows of Resources Liabilities: Current Liabilities 2019 2018 2017 $ 294,952 $ 255,558 1,611,084 2,161,594 285,087 $ 240,081 1,517,455 2,042,623 321,703 151,767 1,478,446 1,951,916 120,312 112,209 154,389 2,281,906 2,154,832 2,106,305 246,738 1,075,603 1,322,341 206,804 1,095,192 1,301,996 202,110 1,029,169 1,231,279 3,286 2,720 Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources 18,277 Net Investment in Capital Assets Restricted Expendable 878,571 117,608 Unrestricted (54,891) 941,288 797,111 87,799 (35,360) 849,550 787,970 76,196 8,140 872,306 Total Net Position Total Liabilities, Deferred Inflows, and Net Position $ 2,281,906 $ 2,154,832 $ 2,106,305 Total Assets and Liabilities Total assets increased $118,972, or 6 percent, and total liabilities increased $20,345 or 2 percent, during fiscal year 2019. Total assets increased $90,707, or 5 percent, and total liabilities increased $70,717, or 6 percent, during fiscal year 2018. At June 30, 2019, current assets exceed current liabilities.
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