Page 48 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

1. Summary of Significant Accounting Policies

The financial statements of Rogue Community College (the College) have been prepared in conformity

with accounting principles generally accepted in the United States of America (GAAP) as prescribed

by the Governmental Accounting Standards Board (GASB). The Governmental Accounting Standards

Board is the accepted standards‐setting body for establishing governmental accounting and reporting
principles. The most significant accounting policies are described below.
Reporting Entity
Rogue Community College was established in November 1970 in Josephine County, Oregon. On May
21, 1996, voters in Josephine and Jackson Counties approved the expansion of the College's
boundaries to include both counties.

The College is an independent municipal corporation under the Oregon Revised Statutes. The College
offers broad, comprehensive programs in academic and vocational‐technical subjects to residents of

Josephine and Jackson counties. The College is governed by an elected seven‐member Board of
Education.

As required by GAAP, the College’s financial statements include the College and its component unit,
the Rogue Community College Foundation (the Foundation).

The Foundation is a legally separate, tax‐exempt component unit of the College. The Foundation acts
primarily as a fund‐raising organization to supplement the resources that are available to the College

in support of its programs. The Foundation Board of Directors is self‐perpetuating. Although the
College does not control the timing or amount of receipts from the Foundation, the majority of

resources, or income thereon that the Foundation holds and invests, are restricted to the activities of

the College by the donors. Because these restricted resources held by the Foundation can only be

used by, or for the benefit of, the College, the Foundation is considered a component unit of the
College and is discretely presented in the College's financial statements.
The Foundation is a private nonprofit organization that reports under Financial Accounting Standards

Board (FASB) standards, including FASB Accounting Standards Codification (ASC) 958‐205‐45, Not‐For‐

Profit Entities – Presentation of Financial Statements. As such, certain revenue recognition criteria and

presentation features are different from GASB revenue recognition criteria and presentation features.
No modifications have been made to the Foundation's financial information in the College's financial
reporting entity for these differences.

During the year ended June 30, 2020, the Foundation provided scholarships and awards of $472,278
and project grants and facility donations of $785,354 for the benefit of the College community.

Complete financial statements for the Foundation can be obtained at 3345 Redwood Highway,
Building H, Grants Pass, Oregon 97527.
Measurement Focus and Basis of Accounting

The College is considered a special‐purpose government engaged only in business‐type activities for

financial statement reporting purposes. Accordingly, the College's financial statements are prepared

using the economic resource measurement focus and the accrual basis of accounting. Under the
accrual basis, revenues are recognized in the accounting periods in which they are earned and expense
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