Page 78 - 2019-20 CAFR
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Rogue Community College

               Notes to Basic Financial Statements
               Year ended June 30, 2020

               9. Post‐Employment Health Care Costs (continued)



                   Sensitivity   of RHIA Assets to Changes in the Discount Rate (RHIA)

                   The discount rate used for the fiscal year end 2020 is   7.20%.   The impact of a 1% increase or decrease
                   in these assumptions is   shown in   the chart below. The following   table  presents  the  College’s



                   proportionate  share  of  the  net  OPEB    asset  of  the  RHIA  OPEB  asset  calculated using the current





                   healthcare   trend rate, as well as what the net OPEB asset would be if calculated using one percentage

                   point lower   or one percentage point higher than the current rate:
                                                              1%   Decrease   Discount   Rate     1%   Increa s e
                                                                 (6.20%)      (7.20%)      (8.20%)

                   Proportionate    share of net RHIA Liability/(Asset)   $      (292,822)   $          (377,709)   $     (450,039)


               10. Commitments
                   Federal Issues


                   The College   receives grants from third parties, including the Federal Government. These funds are
                   subject to audit and adjustment by these agencies, which may occur after the   College’s annual audit.
                   Any disallowed costs, including amounts already collected, may constitute a   liability of the College.
                   This potential liability   is deemed immaterial.
                   Purchasing Commitments

                   In October 2017, the College entered into a contract for the proposed Health Professions Building
                   located  on  the  Table  Rock  Campus  with  Kistler  Small  &  White  Architects    for  $1.4  million  for
                   architectural services and then in April 2019 entered into     a contract with Adroit Construction for
                   $13.16 million for construction services. As of June 30, 2020, the Kistler Small & White Architects
                   contract  has     a  remaining  commitment  of  $19,926,  and  the  Adroit  contract has a remaining
                   commitment of $1.88 million.


                   In June 2019,   the College entered into a contract with Marquess Associates for $66,000 to develop



                   plans and   specifications as required to connect the College’s Redwood Campus to the City of Grants
                   Pass Municipal Water   Service.   As of June 30, 2020, the Marquess Associates contract has a remaining
                   commitment of $15,681.


                   In June 2020, the College entered   into a contract for the proposed Science Center Building located on

                   the Redwood Campus with ORW   Architecture for $789,442 for architectural services and also in June



                   2020  entered  into      a  contract  with  Adroit  Construction  as  a  CMGC  project  for  $19,500  for  pre‐


                   construction  services.  As  of  June  30,    2020,  the  ORW  Architecture  contract  has  a  remaining
                   commitment of $755,653 and the Adroit contract has a remaining commitment of $11,375.

                   In June 2020, the College entered   into a contract with ArcSine Engineering for $29,500 to provide a





                   power distribution   analysis of the Redwood Campus to ensure the needs of the College’s Redwood

                   Campus with the addition   of the new Redwood Campus Science Center are met.  As of June 30, 2020,
                   the ArcSine contract has a remaining commitment of $26,550.
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