Sensitivity of the University's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate
The following table presents the University's proportionate share of the collective net OPEB liability of the System, calculated using the discount rate of 7.10%, as well as what the University's proportionate share of the collective net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.10%) or 1-percentage-point higher (8.10%) than the current rate:
University's Net OPEB (LI) Liability $ 158,000 $ 98,000 $ 50,000
1% Current 1%
Decrease Discount Increase
(6.10)% Rate (7.10%) (8.10)%
KERS KTRS Total
Net OPEB Liability $ 1,798,591 $ 4,383,000 $ 6,181,591
Deferred Outflows of Resources 561,174 3,009,847 3,571,021
Deferred Inflows of Resources 3,765,672 3,044,000 6,809,672
Actuarially Determined OPEB Expense 1,151,748 (30,000) 1,121,748
Summary OPEB Information
The University is a party to various lawsuits and other claims in the ordinary course of business. University officials are of the opinion, based upon the advice of legal counsel, that the ultimate resolution of additional matters existing as of June 30, 2024, but not accrued as of that date, will not have a material effect on the financial statements of the University.
The University receives financial assistance from federal and state agencies in the form of grants and awards. The expenditure of funds received from these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audit could become a liability of the applicable fund.
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