Page 60 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

5. Changes in Long‐Term Obligations (Continued)

exempt status. Entities are required to remit arbitrage rebate payments for non‐purpose interest to

the federal government at least once every five‐year period that the debt is outstanding and at
maturity. Arbitrage liabilities are recorded as a reduction in investment earnings in the General Fund.

For the period July 25, 2016 to April 30, 2019, after the computation date credit, calculations indicate
the arbitrage rebate amount to be a positive $15,798. The first payment will be made, if necessary,

based on a calculation as of July 25, 2021 as required by Section 148(f) of the Code of Regulations.
6. Operating Leases

The College leases building and office facilities and other equipment under non‐cancelable operating
leases. Payments under these leases totaled $318,051 in 2019‐20.

The current and future minimum lease payments for all leases, including building and other
equipment, are as follows:

Fisca l Year Amount
2020‐21 $ 167,478
2021‐22 159,852
2022‐23 161,414
2023‐24 163,022
2024‐25 163,860
2025‐30 311,078
Total $1,126,704

7. Risk Management

The College is exposed to various risks of loss related to general liability, auto liability, property, crime,

and workers' compensation. The College is a member of the OSBA Property and Casualty Coverage

for Education (PACE) and pays an annual premium for property and casualty coverage. Workers'

compensation insurance coverage is provided by SAIF Corporation. The property and auto policy

premiums are based upon annually updated property and auto schedules. Effective with the 2020‐21

policy renewal there are a few notable changes to key coverage areas.
(1) Cyber Coverage. Cyber claims have gone from an obscure and infrequent event to a rapidly
escalating exposure. School districts, education service districts and community colleges are being

specifically targeted. Over the past two years PACE has paid over $1 million in cyber claims and the

trend is escalating. Effective 07/01/2020, the PACE Cyber Coverage will include a $5,000 per
occurrence deductible with a $25,000 per occurrence Cyber Extortion deductible.
(2) COVID‐19. The 2020 PACE Property Coverage and PACE Educators Liability Coverage Documents

will both include communicable disease exclusions. However, they will extend limited defense costs
(up to $50,000) resulting from all occurrences or wrongful acts related to a communicable disease.
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