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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