KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2021
NOTE 10 - OTHER POSTEMPLOYMENT BENEFITS PLANS (OPEB) (CONTINUED)
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 7.50%, 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 (6.50%) or 1-percentage-point higher (8.50%) than the current rate:
Current
University's net OPEB (LI) liability
$ 213,000 $ 147,000 $ 93,000
1% Decrease Discount Rate 1% Increase
(6.50 %) Rate (7.50 %) (8.50%)
OPEB plan fiduciary net position – Detailed information about the KTRS OPEB plans' fiduciary net position is available in the separately issued KTRS financial report.
Summary OPEB Information:
June 30, 2021KERSKTRSTotal
Net OPEB liability$8,124,927$4,497,000$12,621,927
Deferred outflows of resources2,937,2411,103,0004,040,241
Deferred inflows of resources1,084,7111,926,0003,010,711
Actuarially determined OPEB expense1,158,376332,0001,490,376
NOTE 11 - COMMITMENTS AND CONTINGENCIES
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 these matters 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.
NOTE 12 - RISK MANAGEMENT
The University is exposed to various risks of loss from torts; theft of, damage to, destruction of assets; business interruption; employee injuries and illnesses; natural disasters; and employee health and accident benefits. Commercial insurance coverage is purchased for claims arising from these risks. Settled claims have not exceeded this commercial coverage in any of the three preceding years. As a sovereign entity of the Commonwealth of Kentucky, the Kentucky Board of Claims handles tort claims on behalf of the University.
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