University of North Texas System Annual Financial Report: 2013 Page: 38
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UNAUDITED
UNIVERSITY OF NORTH TEXAS SYSTEM (794)
NOTES TO THE COMBINED FINANCIAL STATEMENTS
AUGUST 31, 2013
The average variable interest rate for 2013 of 0.21% was used to estimate interest in future years. The actual rate
will fluctuate based upon market conditions in each year.
Claims and Judgments
There are no outstanding material judgments as of August 31, 2013. There is one material claim that remains
unresolved and therefore has not been paid.
The University of North Texas has a conditional settlement agreement with the City of Denton pending the outcome
of a declaratory judgment action regarding a statutory discount rate for utilities provided to institutions of higher
education. The declaratory judgment action is City of Denton, Texas, Acting by and through its Electric Utility
Department, Denton Municipal Electric v. University of North Texas, which is currently pending in the 158th State
District Court, Denton County, Texas. Payment under the settlement agreement by the University is not due unless
and until the University loses upon final appeal in this matter. It is reasonably possible that the University could lose
on appeal. In the event the University loses on final appeal, it will owe the City of Denton One Million Seventy One
Thousand Two Hundred Forty-five and 49/100 ($1,071,245.49) plus statutory interest of 9.25% per year, and
attorney's fees of up to Forty-five Thousand Five Hundred and no/100 Dollars ($45,500.00).
Employees' Compensable Leave
A state employee is entitled to be paid for all unused vacation time, provided the employee has had continuous
employment with the State for six months and 1.5 compensatory time accrued, in the event of the employee's
resignation, dismissal, or separation from State employment. Expenditures for accumulated annual leave balances
are recognized in the period paid or taken in governmental fund types. For these fund types, the liability for unpaid
benefits is recorded in the Statement of Net Position. An expense and liability for proprietary fund types is recorded
in the proprietary funds as the benefits accrue to employees. No liability is recorded for non-vesting accumulating
rights to receive sick pay benefits.
Pollution Remediation Obligations
In accordance with GASB 41 and the 2013 pollution remediation survey results no disclosure is required as there are
no obliging events regarding pollution remediation as of August 31, 2013.
Note 6: Bonded Indebtedness
Bonds Payable
Detailed supplemental bond information is disclosed in Schedule 2A - Combined Miscellaneous Bond Information,
Schedule 2B - Combined Changes in Bonded Indebtedness, Schedule 2C - Combined Debt Service Requirements,
Schedule 2D- Combined Analysis of Funds Available for Debt Service, Schedule 2E- Combined Defeased Bonds
Outstanding, and Schedule 2F - Combined Early Extinguishment and Refunding.
General information related to bonds is summarized below:
University of North Texas System Administration
Revenue Financing System Bonds, Series 2007
" To provide funds for the purposes of refunding a portion of the Board's outstanding commercial paper
notes, and for acquiring, renovating and equipping property in Dallas for academic and administrative
purposes
" Issued 01-01-2007
" $16,980,000; all authorized bonds have been issued
" Source of revenue for debt service - all pledged revenues of the participants of the University of North
Texas System Revenue Financing System38
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University of North Texas System. University of North Texas System Annual Financial Report: 2013, report, Autumn 2013; Denton, Texas. (https://texashistory.unt.edu/ark:/67531/metapth654674/m1/46/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.