Page 53 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

1. Summary of Significant Accounting Policies (continued)

Operating Revenues and Expenses (continued)

College, and sales of goods and services. Operating expenses include the cost of the faculty, staff,

administration, support expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non‐operating revenues and expenses.
Federal Financial Assistance Program

The College participates in various federally funded programs including Pell Grants, Federal Work‐

Study, Federal Supplemental Educational Opportunity Grants (SEOG), Federal Work‐Study, and
accordance with the Single Audit Act, and the
Federal Direct Loans. Federal programs are audited in

audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Federal Student Loan Programs

The College receives proceeds from the Federal Direct Student Loan Program. The College passes the
awards directly to the students, without having administrative or direct financial involvement in the

program. Federal student loans of $5.2 million were received by the College’s students during the

fiscal year, but they were not reported in operations.
Net Position

Net position is the difference between the College’s total assets and deferred outflows and total

liabilities and deferred inflows. Net position is subdivided into three categories: net investment in
capital assets, restricted, and unrestricted.

Net investment in capital assets represents capital assets, less accumulated depreciation and
outstanding principal and premiums of capital asset related debt, plus cash held for construction. Net

position subject to restrictions by external parties is categorized as restricted. This category

represents debt service, contracts and grants and bond proceeds. When both restricted and

unrestricted resources are available for use, it is the College’s practice to use restricted resources first,

then unrestricted resources as they are needed.
Budgetary Information

In accordance with Oregon Revised Statutes, the College adopts an annual budget and makes

appropriations for each fund. The resolution authorizing appropriations for each fund sets the level

by which expenses cannot legally exceed appropriations. The level of budgetary control for

appropriations is by function. Transfers of appropriations may be made between legally authorized

appropriations when approved by Board resolution. Annual appropriations lapse on June 30.
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