Notes to Consolidated Financial Statements June 30, 2024 and 2023 and supportable information to inform credit loss estimates. The CECL methodology is applicable to trade receivables, net investments in leases, loan receivables, held-to-maturity debt securities, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. The university adopted ASU 2016-13 in fiscal 2024, as required, using the modified retrospective method for all financial assets measured at amortized cost, including trade receivables, without adjusting prior comparative periods. The adoption resulted in no material impact on the university’s consolidated financial statements. . 3. Liquidity and Availability of Resources As of June 30, 2024 and 2023, financial assets available within one year for general expenditure, such as operating expenses, scheduled principal payments on debt and other current obligations, and capital construction costs not financed with debt, were as follows (in thousands ): 2024 2023 Cash and cash equivalents $ 12,530 $ 366 Investments 362,733 353,621 Tuition and other receivables, net 47,928 44,934 Pledges receivable, current portion, net 5,180 2,496 Endowment investments appropriated for spending in the following year 5,226 3,859 Financial assets available within one year for general expenditures $ 433,597 $ 405,276 Assets with purpose restrictions or designations that may be satisfied through general expenditure within the next year are considered available. In addition to these available financial assets, a significant portion of the university’s annual expenditures will be funded by current year operating revenues including tuition, grants and contracts, and auxiliary operations. As part of the university’s liquidity management strategy, the university structures its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, the university invests cash in excess of daily requirements in short-term working capital investments. Additionally, the university has board-designated endowment funds of $70.5 million and $63.6 million as of June 30, 2024 and 2023, respectively. Although the university does not intend to spend from its boarddesignated endowment funds, other than amounts appropriated annually for expenditure in accordance with the university’s investment and spending policy, amounts from its board-designated endowment could be made available if necessary. However, both the board-designated and donor-restricted endowments contain investments with lock-up provisions that reduce the total investments that could be made available (see Note 8 for disclosures about investments). The university also has $33.5 million and $33.9 million in cash and investments as of June 30, 2024 and June 30, 2023, respectively, held by its wholly-owned captive insurance company (see Note 16) which are designated for insurance-related reserves, the total of which exceeds actuarially determined accrued insurance costs. Finally, not included in the table above, are other cash and investments of $320.4 million and $295.6 million as of June 30, 2024 and 2023, respectively, which could be made available in part for general expenditure. However, these investments are either subject to a long-term investment strategy (containing investments with lock-up provisions that reduce the total that could be liquidated, see Note 8) or are intended to support future capital expenditures (including bond proceeds received during fiscal 2022, see Note 9). 24
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