The interfund balances represent current funds advanced to the loan fund to finance the purchase of personal computers for students and plant funds advanced to the current fund to finance the campus debit card project.  Interest is being assessed for the funds advanced to the loan fund.

 

I.  CURRENT UNRESTRICTED FUND BALANCES:

 The June 30, 1998 unrestricted fund balance of $17,094,000 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 1998 but not spent.

 

J.  COMMITMENTS:

 Major plant projects include commitments as follows:

 
The University leases laboratory space under an operating lease expiring in March, 2000.  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 $101,872 per month.  Total rent expense under this lease was $1,222,000 for the year ended June 30, 1998.

 The University is obligated under certain of its investments to make future capital contributions in the amount of $1,505,000.

 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.

 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 $2,301,000 at June 30, 1998.

 Two separate groups of University employees have chosen to be represented by collective bargaining units.  The University is currently participating in contract negotiations with these groups.