Notes to Consolidated Financial Statements June 30, 2024 and 2023 estimated future payments (discounted over the specified period of time the payments are to be made) is recognized as contributions with donor restrictions. Changes in split interest agreements, which are reflected as other revenue in the Consolidated Statements of Activities, increased (decreased) by approximately $2,000 and ($3,000), respectively, for fiscal 2024 and fiscal 2023. At June 30, 2024 and 2023, amounts due to beneficiaries under annuity agreements were approximately $96,000 and $99,000, respectively. No amounts were due to beneficiaries under remainder trusts at June 30, 2024 and 2023. Land, Buildings, and Equipment Land, buildings, and equipment (including library books) are recorded at acquisition cost or fair value at the date of donation and are subsequently carried net of accumulated depreciation. Equipment expenditures in excess of $5,000 with an estimated useful life of two or more years are capitalized. Property and equipment under finance leases are initially valued and recorded based on the present value of the minimum lease payments. Depreciation is calculated using the straight-line method over the assets’ estimated useful lives, ranging from 4 to 50 years, except for leasehold improvements and property and equipment under finance leases, which are amortized over the shorter of the expected useful life of the asset or the term of the related lease. NSU reviews long-lived assets for impairment when events or circumstances indicate the carrying amount will not be fully recoverable, based on estimated future cash flows. Interest on capital projects is capitalized during the construction period. Insurance Programs The university is partially self-insured for workers’ compensation benefits, wholly owns an offshore captive insurance company (see Note 16), participates in partially owned insurance entities and benefit associations, and maintains claims-made insurance policies with respect to certain other coverage. Liabilities for these claims are recorded based on actual loss history and actuarial calculations that include provisions for estimated losses incurred, but not reported, and the portion of insurance risk that has not been transferred to insurance carriers. Accrued insurance costs, net of 3.5 percent discount, approximated $20.7 million at June 30, 2024, and $19.6 million at June 30, 2023, of which $5.3 million and $5.2 million is included in other current liabilities as of June 30, 2024 and 2023, respectively. Undiscounted costs at June 30, 2024 and 2023, were $21.6 million and $20.4 million, respectively. Investments in insurance entities and benefit associations are accounted for under the equity method and are included in other assets and approximated $13.2 million at June 30, 2024, and $13.5 million at June 30, 2023. Endowment Payout and Value The university’s investment policy provides that up to 5 percent of the market value of NSU’s endowment fund be made available annually for expenditure. Absent donor stipulations to the contrary, no distributions are made from an individual endowment until the account reaches a minimum of $25,000. Until that time, all earnings are reinvested. In addition, there is a one-year holding period from the time an individual endowment is funded until it is available for distribution. NSU’s endowment assets include the endowment fund, consisting of cash and investments, as well as endowment-related pledges receivable. At June 30, 2024, endowment-related pledges receivable were $34.0 million, and the fair value of the endowment fund was $218.1 million, representing total endowment 19
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