CU Financials Explained

An illustrated guide to the annual financial report





Net Position

The Bottom Line

Net position is what's left over after you subtract CU's liabilities from its assets. The increase in CU's net pension liability for FY 2017 is a result of the increase in the statewide net pension liability, due to changes in underlying actuarial assumptions made by PERA. We see this change reflected in the top chart "Net Position," which shows CU's new negative unrestricted net position. The second chart shows CU's unrestricted net position absent the state's PERA liability. Important to note: CU's cash payments to PERA have not been impacted by these actuarial changes.

Net investment in capital assets

CU's capital asset balance less debt issued to fund those capital assets - this is typically over 50% of CU's total net position but doesn't reflect spendable reserves.

Net position restricted for nonexpendable purposes

Endowments received as gifts: only the investment earnings on the gift can be spent and then only on scholarships, endowed chairs, and the like.

Net position restricted for expendable purposes

Entire gift can be spent, not just the investment earnings. Funds can be spent only in accordance with restrictions established by external third parties.

Unrestricted net position

Balances designated for use by leadership to address University needs.

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