University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
1. Organization and Summary of Significant
Accounting Policies
A. Reporting Entity
The UO financial reporting entity consists of the
university itself and one university foundation
(UO Foundation), which is reported as a discretely
presented component unit in the UO Financial
Statements. See Note 18. University Foundation for
additional information relating to this component unit.
Organizations that are not financially accountable to
the UO, such as booster and alumni organizations, are
not included in the reporting entity.
Previously a member institution of the Oregon
University System (OUS), the UO became an
independent public entity, with statewide purposes
and missions, effective July 1, 2014. The OUS ceased
operations effective June 30, 2015. The UO has separate
legal standing and possesses the corporate powers that
distinguish it as being legally separate from the State of
Oregon. The UO is included as a discretely presented
component unit in the Comprehensive Annual
Financial Report issued by the state starting with the
fiscal year 2015 financial report.
manage,
The University of Oregon Board of Trustees (BOT) is
the UO's governing body. The broad responsibilities
of this 15-member group are to supervise, coordinate,
and regulate the UO, as provided by state
statute. The trustees may exercise all powers, rights,
duties, and privileges expressly granted by law, or that
are incidental to their responsibilities. The membership
of the BOT is established by law. With the exception of
the UO president, the trustees are appointed by the state
governor and are subject to confirmation by the state
senate in the manner prescribed by law. To assist the
governor in appointing trustees, the BOT may submit
a list of nominees to the governor for consideration
whenever there is a vacancy.
B. Financial Statement Presentation
The UO financial accounting records are maintained in
accordance with US Generally Accepted Accounting
Principles (GAAP) as prescribed in applicable
pronouncements of the Governmental Accounting
Standards Board (GASB).
The UO prepares and presents its financial information
in accordance with GASB Statement No. 34, Basic
Financial Statements - and Management's Discussion
and Analysis - for State and Local Governments
(GASB 34). GASB 34 established the requirements and
reporting model for annual financial statements. GASB
34 requires that financial statements be accompanied by
a narrative introduction and analytical overview of the
reporting entity in the form of an MD&A.
The UO has also adopted GASB Statement No. 35, Basic
Financial Statements - and Management's Discussion
and Analysis - for Public Colleges and Universities - an
amendment of GASB Statement No. 34, as well as GASB
Statement 63, Financial Reporting of Deferred Outflows
of Resources, Deferred Inflows of Resources, and Net
Position. These statements establish accounting and
financial reporting standards for public colleges and
universities within the financial reporting guidelines of
GASB 34.
In preparing the financial statements, significant
interfund transactions and balances between university
funds have been eliminated. Unless otherwise stated,
dollars are presented in thousands.
Financial statements of the UO Foundation are
presented in accordance with GAAP prescribed by the
Financial Accounting Standards Board (FASB).
Newly Implemented Accounting Standards
The UO implemented GASB Statement No. 83, Certain
Asset Retirement Obligations for the fiscal year ending
June 30, 2019. GASB Statement No. 83 improves
accounting and financial reporting for certain asset
retirement obligations (AROs). An ARO is a legally
enforceable liability associated with the retirement
of a tangible capital asset. It establishes criteria for
determining the timing and pattern of recognition of
a liability and a corresponding deferred outflow of
resources for AROS. The UO has no asset retirement
liabilities that are subject to the requirements of this
statement.
The UO implemented GASB Statement No. 88, Certain
Disclosures Related to Debt, including Direct Borrowings
and Direct Placements, effective for the fiscal year
ending June 30, 2019. GASB Statement No. 88 improves
disclosures related to debt, including direct borrowings
and direct placements and clarifies which liabilities
should be included when disclosing information related
to debt. See Note 10. Long-Term Liabilities.
Upcoming Accounting Standards
The UO is analyzing the effects of the adoption of the
following GASB statements and is uncertain of the
impact on the financial statements and related reporting
requirements at this time.
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