The interfund balances represent current funds advanced to
the loan fund to finance the purchase of personal computers for students.
Interest is being assessed for these funds.
I. CURRENT UNRESTRICTED FUND BALANCES:
The June 30, 2000 unrestricted fund balance of $1,862,000 has
been internally designated for use in future years' operations, some of
which will be used to fund certain maintenance and other projects for which
funds were appropriated in fiscal 2000 but not spent.
Major plant projects include commitments as follows:
The University leases laboratory space under an operating lease expiring in February, 2001. The lease contains two five-year renewal options and the University may terminate the lease at anytime, provided certain requirements are met. Lease payments are currently $96,542 per month. Total rent expense under this lease was $1,272,000 for the year ended June 30, 2000.
The University is obligated under certain of its investments to make future capital contributions in the amount of $4,730,000.
The University is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The University manages these risks through a combination of self-insurance and commercial insurance purchased in the name of the University. The University's annual self-insured obligation for property and casualty risks is capped at $700,000, except for educator's legal liability risks which are subject to a $150,000 per loss retention with no annual cap.
Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
The University follows the policy of self-insuring business risks up to certain prudent limits. Reserves for health, property and casualty liabilities are included in accrued liabilities in the amount of $2,115,000 at June 30, 2000.
Two separate groups of University employees have chosen to be represented by collective bargaining units. The University will be participating in contract negotiations with these groups periodically.