Page 30 - 2019-20 CAFR

Board of Education
Rogue Community College

MANAGEMENT’S DISCUSSION AND ANALYSIS

This section of the Rogue Community College (the College) Comprehensive Annual Financial Report (CAFR)
presents an analysis of the financial activities of the College for the fiscal year ended June 30, 2020. This
discussion has been prepared by management along with the financial statements and related footnote

disclosures and should be read in conjunction with them. Consequently, management assumes full
responsibility for the completeness and reliability of all information presented in this report. This discussion

is designed to focus on current activities, resulting changes, and currently known facts.
Financial Highlights

The significant events of the fiscal year ended June 30, 2020 that impacted the College are as follows:

• FTE reimbursement from the State of Oregon increased 95.25% or $6.65 million. This change is
an increase in the overall State Appropriation for Community Colleges of $70.6 million and
attributable to

the Oregon Legislature’s deferral of its eighth quarter reimbursement from May 2020 to August 2020.

The deferrals were enacted in 2003 and are scheduled to occur on alternate years so the State can

balance its biennial budget. More information about FTE reimbursement is located in the revenue section

of this analysis.

• The College’s state and local government grants and contracts revenue increase $5.1 million or 77.0%.

The increase is attributable to state and local grant investment in capital construction, as well as
additional state grant awards. More information about state and local government grants and contracts

is located in the revenue section of this analysis.
• Auxiliary Enterprises income decreased $413,000 or 24.1% from the prior year. The decrease is
attributable to the decrease in student enrollment due to COVID-19, an increase in Open Educational

Resources, and an increase in students buying from an alternate vendor.

• Investment income decreased $232,000 or 18.5% from the prior year. The decrease is attributable to the

decrease in interest rates and the reduction of unspent General Obligation and Refunding bond proceeds,
Series 2016B.

One of the College’s largest categories in net position, Net investment in capital assets ($37.6 million), reflects

the investment in
capital assets (e.g. land, buildings, machinery and equipment) less any related, outstanding
debt used to acquire those assets. The College uses these capital assets to provide services to students;

consequently, these assets are not available for future spending. Although the College’s investment in its

capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must

be provided from other sources. The capital assets themselves cannot be used to liquidate these liabilities.

Overview of the Financial Statements
This discussion and analysis is an introduction to the College’s basic financial statements, which are comprised

of entity-wide financial statements prepared in accordance with the accrual basis of accounting and notes to

the basic financial statements. In addition, the report contains the Required Supplementary Information

Section, the Statistical Section and the State and Federal Compliance Section.

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