Page 49 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

1. Summary of Significant Accounting Policies (continued)

Measurement Focus and Basis of Accounting (continued)

are recognized in the periods which liabilities are incurred, regardless of the timing of related cash
flows. All significant intra‐agency transactions have been eliminated.

Non‐exchange transactions, in which the College receives value without directly giving equal value in

return, include property taxes, federal, state, and local grants, state appropriations, and other
contributions. On an accrual basis, revenue from property taxes is recognized in the period for which
the levy is intended to finance. Revenue from grants, state appropriations, and other contributions
are recognized in the year in which all eligibility requirements have been satisfied. Eligibility
requirements include timing requirements, matching requirements, and expense requirements.

Timing requirements specify the year when the resources are required to be used or the fiscal year

when use is first permitted. Matching requirements stipulate the College provide local resources to

be used for a specified purpose. Expense requirements stipulate the College will receive resources on
a reimbursement basis.
Use of Estimates

The preparation of financial statements, in accordance with GAAP, requires management to make
estimates and assumptions affecting amounts reported in the financial statements and related
disclosures. Actual results could differ from the estimates.
Cash and Cash Equivalents
Cash and cash equivalents are considered to be cash on hand, cash with fiscal agent, demand deposits,

the State of Oregon Treasurer's Local Government Investment Pool (LGIP) and short‐term investments

with original maturities of three months or less from the date of acquisition. The LGIP is not registered
with the U.S. Securities and Exchange Commission as an investment company. The LGIP is stated at
amortized cost, which approximates fair value. Fair value of the investment in the LGIP is substantially
the same as the College’s participant balance.
Oregon Revised Statutes authorize investment in general obligations of the U.S. government and its

agencies, certain bonded obligations of Oregon municipalities, repurchase agreements, and bankers'

acceptances. The College has an investment policy that is more restrictive than the Oregon Revised

Statutes. As of June 30, 2020, and for the year then ended, the College was in compliance with the
aforementioned State of Oregon statutes and its own internal investment policies.
Receivables

Student and agency receivables are shown net of an allowance for uncollectible accounts.

Property taxes are levied and become a lien on all taxable property as of July 1. Taxes are payable on
November 15, February 15, and May 15. Discounts are allowed if the amount due is received by

November 15. Taxes unpaid and outstanding on May 16 are considered delinquent. Uncollected taxes
are deemed to be substantially collectible or recoverable through liens; therefore, no allowance for
uncollectible taxes has been established.
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