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:
Of the June 30, 2001 unrestricted fund balance, $3,344,000 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 2001 but not spent.
Major plant projects include commitments as follows:
Estimated Project Project-to-Date Project-to-Date
Cost Expenditures - 2001 Expenditures - 2000
CHP Upgrades 4,000,000 3,373,000 2,046,000
Given/Rowell Chiller 3,500,000 1,994,000
PBX System - 1999 4,500,000 3,418,000 2,568,000
Medical Research Building 24,935,000 22,567,000 11,561,000
Perkins Geology Renovation 4,615,000 251,000 60,000
Rubenstein Ecosystem Lab 3,950,000 3,935,000 3,518,000
Waterman Renovation 3,000,000 2,620,000 374,000
The University leases laboratory space under an operating lease expiring in February, 2006. The lease contains one five-year renewal option and the University may terminate the lease at anytime, provided certain requirements are met. Lease payments are currently $76,636 per month. Total rent expense under this lease was $1,202,000 for the year ended June 30, 2001.
The University is obligated under certain of its investments to make future capital contributions in the amount of $3,790,000.
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 $775,000, 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 property and casualty liabilities are included in accrued liabilities in the amount of $913,000 at June 30, 2001.
The University faculty voted to be represented by a collective bargaining unit in April, 2001. The University expects to begin negotiations with this unit in October, 2001. Two other groups of University employees are represented by collective bargaining units. The University will be participating in contract negotiations with these groups periodically.