FY 2005 - University of Missouri System

N otes to Combined Financial StatementsF o r t h e y e a r s e n d e d J u n e 3 0 , 2 0 0 5 a n d 2 0 0 4The University makes available two long-term disability options to its employees. Option A coverage is equal to 60%of the employee’s salary on the date the disability began, with full integration with benefits from other sources. OptionB coverage is equal to 66 2/3% of the employee’s salary, integrated with other benefits so that benefits from all sourceswill not exceed 85% of the employee’s salary. Both options have a 149-day waiting period and provide benefits to age65. The University pays for the full cost of Option A coverage; employees enrolled in Option B pay for the additionalcost of Option B over Option A.The terms and conditions governing the postemployment benefits to which employees are entitled are in the soleauthority and discretion of the University’s Board of Curators.Postemployment benefit costs, other than long-term disability, are funded on a current basis and the amounts recordedas expense of $14,805,000 and $16,647,000 for the years ended June 30, 2005 and 2004, respectively, are on a pay-asyou-gobasis. Long-term disability costs are recognized during the period in which the employee becomes eligible toreceive disability benefits and amounted to $1,182,000 and $4,380,000 for the years ended June 30, 2005 and 2004,respectively.17. SEGMENT INFORMATIONA segment is an identifiable activity reported within a stand-alone entity for which one or more revenue bonds areoutstanding. A segment has a specific identifiable revenue stream pledged in support of revenue bonds and has relatedexpenses, gains and losses, assets and liabilities that are required by an external party to be accounted for separately.The University has two segments that meet the reporting requirements of GASB Statement No. 37.The outstanding debt of the University consists of System Facility Revenue Bonds and Health Facilities RevenueBonds. The System Facility Revenue Bonds are issued in accordance with a Resolution adopted by the Board ofCurators in October 1993. The Resolution provides that the bonds are payable from the gross income and revenuesderived from the related facilities including student fees, housing, dining, bookstore and parking revenues and variousother University revenues.The Health Facilities Revenue Bonds are limited obligation bonds secured by revenues of the Health System. TheHealth System consists of the University of Missouri Hospitals and Clinics, which includes the University of MissouriHospital, Ellis Fischel Cancer Center, Rusk Rehabilitation Center and the Children’s Hospital; the University PhysiciansMedical Practice Plan, which includes faculty of the University of Missouri-Columbia School of Medicine; and theMissouri Rehabilitation Center.2 0 0 5 F i n a n c i a l R e p o r t : U n i v e r s i t y o f M i s s o u r ia c o m p o n e n t u n i t o f t h e S t a t e o f M i s s o u r i 47