University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
Discount Rate Sensitivity
The discount rate sensitivity analysis shows the
sensitivity of the total and net OPEB liabilities to
Changes in the Discount Rate.
The following shows what the university's total and
net OPEB liabilities would be if it were calculated
using a discount rate that is one percent lower or one
percent higher than the current rate:
The UO's contributions subsequent to the measurement
date will be recognized as a reduction of the net
OPEB liability in the succeeding year. Other amounts
reported as deferred outflows of resources and deferred
inflows of resources related to OPEB will be recognized
in OPEB expense (revenue) as follows:
Year Ended
June 30
(Revenue)
Amortizations Amortizations
RHIA Expense
RHIPA Expense
(Revenue)
Amortizations
PEBB Expense
(Revenue)
Total and Net
OPEB Expense
(Revenue)
2020
$
(208)
$
(36) $
13
$
(231)
RHIA RHIPA PEBB
7.20% 7.20% 3.50%
(2,452) 2,210
(1,428) 2,478 14,292
(3,324) 1,904 12,070
(2,452) 1,790 11,445
(2,452) 2,621 15,165
2021
(210)
(35)
13
(232)
2022
(176)
(35)
13
(198)
13,135
2023
(53)
(27)
13
(67)
2024
(24)
13
(11)
Thereafter
(21)
65
44
$
(647) $
(178) $
130
$
(695)
Discount rate
Fund's Proportionate Share at Measurement Date
Using discount rate 1.00% lower.
■Using discount rate 1.00% higher
■Using healthcare cost trend rate 1.00% lower
■Using healthcare costs trend rate 1.00% higher
At June 30, 2019, the UO reported deferred outflows of
resources and deferred inflows of resources related to
OPEB from the following sources:
RHIA
Deferred Outflows of Deferred Inflows of
Resources
Resources
$
Differences between expected and
actual experience
$
Changes in assumptions
Net difference between projected and
actual earnings on investments
Changes in proportion and differences
between fund contributions and
proportionate share of contributions
27
Total (prior to post-measurement date
contributions)
S
27 $
Net Deferred Outflow/Inflow of
Resources before contributions
subsequent to Measurement Date
Contributions made subsequent to
measurement date
Net Deferred Outflow/Inflow
of Resources
$
RHIPA
139
8
529
676
(649)
1,093
444
Deferred Outflows of Deferred Inflows of
Resources
$
23
Resources
164
15. Risk Management
Effective July 1, 2015, the UO implemented its first
independent insurance portfolio as it withdrew from
the Public University Risk Management Insurance Trust
(PURMIT).
Effective October 15, 2016, the UO increased its
property insurance coverage to $1,000,000. The total
insurable value of property was assessed at $4,200,000
with a self-insured retention of $250. The earth
movement and flood damage sublimit is $100,000, with
a self-insured retention of $500. The casualty program
covers general tort claims as well as directors and
officers, errors and omissions, and employment liability.
The UO's self-insured retention is $500 for general
liability. During the last four fiscal years, no settled
claims have exceeded the insurance coverage levels.
Property and casualty claims incurred but not reported
(IBNR) are estimated at $1,300 beginning 2019. Activity
for the year observed claims of $1,438 and payments for
$1,425. Ending IBNR is estimated at $1,313.
Differences between expected and
actual experience
S
Changes in assumptions
Net difference between projected and
Property and Casualty
2019
2018
actual earnings on investments
36
Total (prior to post-measurement date
Beginning Liability
$
contributions)
$
23 $
200
Claims Incurred
Net Deferred Outflow/Inflow of
Resources before contributions
Claims Payments
subsequent to Measurement Date
(177)
Ending Liability
$
1,300 $
1,438
(1,425)
1,313 $
1,543
940
(1,183)
1,300
Contributions made subsequent to
measurement date
Net Deferred Outflow/Inflow
of Resources
843
$
666
PEBB
Deferred Outflows of Deferred Inflows of
Resources
Resources
227
355 $
$
128
The UO participates in a student health insurance plan
which is controlled and administered by PacificSource
Health Plans (PacificSource). The UO implemented
self-insurance for this plan in fiscal year 2017. The UO
purchases individual and aggregate stop loss coverage.
The limit of self-insurance is $200 per claim, with an
additional $3,000 of aggregate stop loss coverage above
Changes in assumptions
Net Deferred Outflow/Inflow
of Resources
$
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