Page 32 - 2019-20 CAFR

Rogue Community College

Fiscal Year Ended June 30, 2020

$2.9 million decrease in current assets can be attributed to the increased construction costs associated with
new construction and major remodel of facilities. Net investment in capital assets is $37.6 million,

increase of $8.9 million from the prior year. The College uses capital assets to provide services
representing an

to students; consequently, these assets are not available for future spending. The College’s receivables

consist of taxes, student accounts, interest and various operating receivables. Additional information
regarding capital assets can be found in Note 4.

Deferred outflows represent the consumption of net position attributable to a future period and are primarily

associated with the College’s obligations for the pension and other post-employment benefits, as well as the

deferred charge on refunding of debt. Deferred outflows decreased $1.4 million, or 12.0% from the previous
year.

Current liabilities consist primarily of accounts payables, accrued compensation, unearned revenue, and the
current portion of long-term obligations. Current liabilities decreased $278,000 or 3.7% over prior year. The

attributable to the decrease in accounts payable and retainage due to the near completion of one
decrease is
major construction project.

Net position is reported in three components with an overall increase of approximately 72.7% in fiscal year

2020. The largest portion of the College’s net position is the $37.6 million net investment in capital assets.
The restricted component of net position consists of amounts set aside for debt service, student financial aid,

federal financial aid, unspent bond proceeds, other post-employment benefit assets, and grants and

contracts. The remaining component is categorized as unrestricted.

Unrestricted assets, as defined by GAAP, are funds that are not subject to externally imposed restrictions on

the use. Unrestricted funds are allocated for academic programs, capital projects, reserves, and other

purposes from year to year. With the implementation of GASB 68, 71 and 75, unrestricted net position will

have the potential to fluctuate materially from year to year. The fluctuation is dependent on college-wide

investment returns and changes related to the actuarial unfunded liability for pensions and OPEB. The large

fluctuation in the recent valuation contributes to the College reporting a negative unrestricted net position

of $18.9 million at June 30, 2020.

Analysis of the Statement of Revenues, Expenses and Changes in Net Position

For the Year Ended June 30, 2020

The Statement of Revenues, Expenses and Changes in Net Position presents the revenues earned and the

expenses incurred during the year. All changes in net position are reported under the accrual basis of

accounting, or as soon as the underlying event giving rise to the change occurs, regardless of the timing as to

when the cash is received or disbursed. Thus, revenues and expenses are reported in this statement for some

items that will result in cash flows in future fiscal periods. The utilization of long-lived investments is reflected
in the financial statements as depreciation, which amortizes the cost of the capital asset over the expected

useful life. Revenues and expenses are reported as either operating or non-operating, with operating

revenues primarily generated from tuition and student financial aid grants. State appropriations and property
taxes are classified as non-operating revenues. Because of the College’s dependency on state aid and

property tax revenue, this statement presents an operating loss.

20