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 $1,216,000 for the year ended June 30, 1997.

The University is obligated under certain of its investments to make future capital contributions in the amount of $3,574,000.

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 $900,000.

Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Effective January 1, 1997 the University's medical and dental coverage for employees is on a premium basis. Adequate reserves exist to cover final claims against the self-insured medical and dental coverage which ended December 31, 1996. All claims must be made by December 31, 1997.

The University follows the policy of self-insuring business risks up to certain prudent limits. Reserves for health, dental, property and casualty liabilities are included in accrued liabilities in the amount of $3,214,000 at June 30, 1997.