Page 51 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

1. Summary of Significant Accounting Policies (continued)

Capital Assets (continued)

The College meets all of the above criteria and has chosen not to capitalize and depreciate artwork
and historical treasures.
Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position includes a separate section for deferred outflows
of resources. This separate financial statement element represents a consumption of net position that

applies to future period(s) and will not be recognized as an outflow of resources (expense) until then.

The College has three items that qualify for reporting in this category: the pension obligation, other

post‐employment benefit obligation (OPEB), and deferred charge on debt refunding. The pension
obligation results from changes in assumptions, differences between expected and actual experience,
proportion, reported in the actuarial calculation of the College’s net pension liability.
and changes in
The College has two OPEB obligations; the first plan is a single employer plan, administered by the

College. The second plan is a multi‐employer Retirement Health Insurance Account (RHIA)

administered by Oregon Public Employees Retirement System (PERS). The deferred outflows of
resources for the College administered OPEB plan relates to changes in assumptions and the
difference between expected and actual experience. The Deferred outflows of resources for the RHIA

OPEB obligation administered by PERS is related to the changes in proportion. The deferred charge

on refunding results from the difference in the carrying value of refunded debt and its reacquisition

price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding
debt.
In addition to liabilities, the Statement of Net Position includes a separate section for deferred inflows

of resources. This separate financial statement element represents an acquisition of net position that

applies to a future period(s) and will not be recognized as an inflow or resources (revenue) until that
time. The College has two items that qualify for reporting in this category: the employer deferred

pension obligation and the deferred OPEB obligation. The deferred pension obligation results from

the differences between projected and actual earnings on investments, the changes in proportion,
and differences between employer contributions and proportionate share of contributions derived
from the actuarial calculation of the College’s net pension liability. The deferred inflow of resources

for the College administered OPEB obligation relates to changes in assumptions. The deferred inflow

of resources from the RHIA OPEB obligation administered by PERS results from changes in the

differences between expected and actual experience, changes of assumptions, net difference
between projected and actual earnings on investments, and changes in proportion.
Compensated Absences

Employees accumulate vacation and sick leave in accordance with their related bargaining agreement,
employee handbook, or under Oregon Revised Statutes Sections 653.601 – 653.661. Accumulated and

unused vacation balances are accrued at the end of the year. Used vacation is expensed when
incurred. Unused sick balances are not accrued at the end of the year, as they are forfeited when an
employee separates from service. Used sick leave is expensed when incurred.
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