University of Oregon 2019 Annual Financial Report
Management's Discussion and Analysis
For the Year Ended June 30, 2019 (dollars in thousands)
2019 Operating Expenses by Natural Classification
Scholarships and
Fellowships.
Services and Supplies
20%
Change in Components
of Net Pension
& OPEB Liabilities
1%
4%
Depreciation and
Amortization
7%
Other Expenses
1%
Compensation and
Benefits
67%
Comparison of fiscal year 2019 to fiscal year 2018
Compensation and benefits costs increased $42,972, or
7 percent, due to the following:
• Increased FTE and higher average salaries resulted
in higher wage costs (approximately $19,300, or 5
percent).
• Other payroll expenses, which include retirement,
health insurance, and employee termination agreements,
increased by approximately $23,097, or 10 percent.
Change in components of net pension & OPEB
liabilities decreased $43,714, or 79 percent, primarily
due to the impact of state pension obligations.
Services and supplies expense increased $11,305,
or 6 percent. $8,955 of this increase was related to
maintenance & repairs cost in fiscal year 2019. Other
key increases were in the following categories: items
for resale, fees & services, assessments, and travel.
Expense increases were offset by internal sales.
Scholarships and fellowships expenses increased
$533, or 1 percent. This expense category does
not include fee remissions, which are reported as
reductions to student tuition and fee revenues.
Depreciation and amortization increased $202, due to
the impact of new assets placed in service in fiscal
year
2019.
Comparison of fiscal year 2018 to fiscal year 2017
Compensation and benefits costs increased $6,281, or 1
percent.
Change in components of net pension & OPEB
liabilities increased $14,551, or 35 percent, due to the
impact of state pension and OPEB obligations.
Services and supplies expense increased $7,385, or 4
percent. Increased payments to subcontracts of $3,411
and a $3,144 increase in items for resale make up the
majority of the increase.
Scholarships and fellowships expenses increased
$2,745, or 8 percent. This expense category does
not include fee remissions, which are reported as
reductions to student tuition and fee revenues.
Depreciation and amortization increased $3,196, or 5
percent, due to the impact of new buildings placed in
service in fiscal year 2018.
Capital Assets and Related Financing
Activities
Capital Assets
year
At June 30, 2019, the UO had $2,474,929 in capital
assets, less accumulated depreciation of $863,845, for
net capital assets of $1,611,084. During fiscal year 2019,
$46,778 in construction projects were completed and
placed into service, compared to $88,874 in fiscal
2018. The UO is committed to a comprehensive program
of capital investment and facility maintenance that
includes addressing current maintenance needs and
minimizing the UO's deferred maintenance backlog.
State, federal, private, debt, and internal UO funding
were all used to accomplish the UO's capital objectives.
Capitalized
Collections
2.9%
Construction in
Progress
Land and
Improvements
6.1%
11.7%
Changes to Capital Assets
Capital Assets, Beginning of Year
Add: Purchases/Construction
Less: Retirements/Disposals/Adjustments
Total Capital Assets, End of Year
Accum. Depreciation, Beginning of Year
Add: Depreciation Expense
Less: Retirements/Disposals/Adjustments
Total Accum. Depreciation, End of Year
Total Capital Assets, Net, End of Year
Equipment &
Other
1.9%
2019
2018
Library
- Materials
0.8%
Intangibles
0.4%
Buildings
76.3%
2017
$ 2,101,324
134,351
$ 2,321,395
$ 2,231,723
160,280
110,240
(6,746)
(20,569)
(3,952)
2,474,929
2,321,395
2,231,723
(803,940)
(65,554)
5,649
(863,845)
(753,276)
(694,876)
(65,351)
(62,155)
14,688
(803,940)
3,755
(753,276)
$ 1,611,084
$ 1,517,455 $ 1,478,447
Capital additions totaled $160,280 for fiscal year 2019,
$110,240 for fiscal year 2018, and $134,351 for fiscal
year 2017.
2019 Annual Financial Report 13View entire presentation