TAB W FY2019 External Auditor Annual Report · January 23-24, 2020 Board of Trustees Meetings ... ty’s fundraising history last year with gifts totaling $144.5 million. This includes

TAB W

January 23-24, 2020 Board of Trustees Meetings

Finance & Administration Committee Page 1

FY2019 External Auditor Annual Report

BACKGROUND The Oregon State University FY2019 Annual Financial Report was prepared by the university in conjunction with the University Shared Services Enterprise (USSE). An external audit was completed by CliftonLarsonAllen, LLP for the year ended June 30, 2019. REPORT SUMMARY The auditors at CliftonLarsonAllen, LLP issued an unmodified opinion, meaning their opinion as to the fair presentation of the financial statements was issued without modifications. The complete FY2019 Annual Financial Report can be found in Attachment 1. As part of the financial statement audit, a Governance Communication Letter was prepared by CliftonLarsonAllen, LLP, to communicate certain matters related to the conduct of the audit to those who have responsibility for oversight of the financial reporting process. A copy of the Governance Communication Letter is available in Attachment 2. In conjunction with the financial statement audit, CliftonLarsonAllen, LLP, conducted a federal compliance audit of Oregon State’s sponsored programs in accordance with Federal Uniform Guidance 2 CFR Part 200, and issued the Single Audit Compliance Report. The results of the audit disclosed an “Other Matter” related to a single deficiency in internal controls related to compliance. See pages 4 and 50 of the Single Audit Compliance Report for details. The Single Audit Compliance Report is included in Attachment 3. Management has provided a response to CliftonLarsonAllen, LLP’s finding in the Single Audit Compliance Report, which is included as Attachment 4. RECOMMENDATION Subject to the report of CliftonLarsonAllen, LLP, staff recommend that the Executive & Audit Committee accept the Oregon State University 2019 Annual Financial Report.

Oregon State University2019 Annual Financial Report

TAB W - Attachment 1

Table of Contents

Board of Trustees and Executive Offi cers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Statements of Net Position — University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Statements of Financial Position — Component Units . . . . . . . . . . . . . . . . . . . . . . . .21

Statements of Revenues, Expenses and Changes in Net Position — University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Statements of Activities — Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Statements of Cash Flows — University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

1 | Oregon State University


Board of Trustees(eff ective as of June 30, 2019)

Rani N. Borkar, Chair Portland, Oregon

Kirk E. Schueler, Vice Chair Bend, Oregon

Michael J. Bailey Corvallis, Oregon

Mark B. Baldwin Albany, Oregon

Patricia M. Bedient Sammamish, Washington

Darald W. Callahan San Rafael, California

Julia A. Brim-Edwards Portland, Oregon

Michele Longo Eder Newport, Oregon

Paul J. Kelly, Jr. Portland, Oregon

Angel Mandujano-Guevara Cornelius, Oregon

Julie Manning Corvallis, Oregon

Laura Naumes Medford, Oregon

Preston Pulliams Jackson, Massachusetts

Michael G. Thorne Pendleton, Oregon

Edward J. Ray (ex offi cio, nonvoting) Corvallis, Oregon

Debbie Colbert, Secretary Corvallis, Oregon

Executive Offi cers(eff ective as of June 30, 2019)

Edward J. RayPresident

Edward FeserProvost and Executive Vice President

Charlene AlexanderVice President and Chief Diversity Offi cer

Michael J. GreenVice President for Finance and Administration

Irem TumerInterim Vice President for Research

Steven ClarkVice President for University Relations and Marketing

Becky JohnsonVice President for OSU-Cascades

Scott BarnesVice President and Director of Intercollegiate Athletics

Rebecca GoseGeneral Counsel

Patricia SnopkowskiChief Audit Executive

2019 | Annual Financial Report | 1


OREGON’S STATEWIDE UNIVERSITYOregon State University is a comprehensive, internationally recognized public research university. OSU serves as the state of Oregon’s land, sea, space and sun grant university and is one of only two in the nation with all designations. Its programs are located in every county in Oregon, and its faculty are dedicated to providing solutions for the state and world’s greatest challenges. OSU considers the entire state of Oregon as its campus and works in partnership with many school districts, all of Oregon’s 17 community colleges and numerous public and private universities and colleges to provide access to high-quality education. Meanwhile, strong collaborations with industry — as well as state and federal agencies — help contribute to the success of the university’s research enterprise.

OSU Extension Service Locations (35)

OSU Research and Extension Centers (5)

OSU Campuses (2)

Oregon Agricultural Experiment Station Sites (14)

Forest Research Laboratory Sites (7)

BEND

CORVALLIS



MISSIONAs a land grant institution committed to teaching, research, and outreach and engagement, Oregon State University promotes economic, social, cultural and environmental prog-ress for the people of Oregon, the nation and the world. We accomplish this by:

• Producing skilled graduates who are critical thinkers.

• Searching actively for new knowledge and solutions.

• Developing the next generation of scholars.

• Collaborating with communities in Oregon and aroundthe world.

•Maintaining a rigorous focus on academic excellence,particularly in three signature areas: the science of sustain-able Earth ecosystems, health and wellness, and economicprosperity and social progress.

VISIONLeadership among land grant universities in the integrated creation, sharing and application of knowledge for the betterment of human kind. In this way, we produce graduates, scholarship and solutions that achieve maximum positive impact on humanity’s greatest challenges.

GOALSStrategic Plan 4.0 expands Oregon State’s strategic goals to focus on:

1. Preeminence in research, scholarship, and innovation.

2. Transformative education that is accessible to all learners.

3. Signifi cant and visible impact in Oregon and beyond.

4. A culture of belonging, collaboration and innovation.

View OSU’s Strategic Plan at: leadership.oregonstate.edu/strategic-plan



POINTS of PRIDE IN THE WORLD FOR FORESTRY

IN THE WORLD FOR OCEANOGRAPHY

No. 2No. 3

Oregon State Ecampus has been ranked as one of the Best Online Bachelor’s Programs for five consecutive years — as a result of its high graduation rates, low graduate debt and strong student support. (U.S. News & World Report)

BEST ONLINE BACHELOR’S PROGRAM IN THE NATION

No. 3Oregon State faculty are among the most frequently published in top-tier scientific journals, earning a global reputation for groundbreaking research that impacts the environment and the economy. (Center for World University Rankings)

Message from President Edward J. Ray

As Oregon State University begins its next 150 years of service, the university continues to demonstrate far-reaching impact in Oregon, across the nation and around the world. I am pleased to report again this year that the institution’s fi nancial foundation remains strong.

At the forefront of excellence, leadership and innovation, OSU con-tinues to serve as Oregon’s leading comprehensive university and is an internationally recognized public research university.

The university’s achievements occur on many fronts. Our College of Forestry is ranked No. 2 in the world, and our oceanography pro-gram No. 3 globally. U.S. News and World Report ranked Oregon State’s Ecampus online bachelor’s programs No. 3 in the country and this fall declared that OSU is the most innovative university in the Pacifi c Northwest and 33rd most innovative university in the nation. Our research enterprise excels, garnering $440 million in research funding in Fiscal Year 2019. Oregon State researchers address some of the world’s most pressing problems — from ad-vances in cancer treatment to feeding the world’s growing popula-tion to addressing the causes of climate change.

The OSU Foundation celebrated the second best year in the universi-ty’s fundraising history last year with gifts totaling $144.5 million. This includes $28.5 million raised in one year for the university’s Student Success Initiative, exceeding a $25 million goal for the year. In one year, donors funded approximately 70 new scholarship and fellow-ship funds and fi ve new endowed positions, in addition to providing philanthropy that will advance projects and programs across the university. Several colleges and units will benefi t from record-breaking philanthropic giving. For example, the colleges of Agricultural Sciences and Earth, Ocean, and Atmospheric Sciences had their best fundrais-ing year ever with the colleges of Engineering, and Liberal Arts, as well as Athletics, posting their second highest totals.



For the fi fth consecutive year, OSU was the largest university in the state with more than 32,000 students enrolled for the 2018-19 academic year. True to our land grant mission, enrollment of Oregon residents remains strong, and the growth in the number of Oregon students at OSU accounted for nearly all of the growth of resident Oregonian students within the state’s public universities last year. With regard to enrollment management, we are following a forecast that calls for up to 28,000 students to be enrolled at our Corvallis campus; 3,000 students at our OSU-Cascades campus in Bend; up to 500 students annually engaged in marine studies at our Hatfi eld Marine Sciences Center in Newport; and 7,000 or more degree-seeking students enrolled online through Ecampus. Additionally, in fall 2018, Oregon State began off ering classes and programs to Portland-area residents and opened its new OSU Port-land Center in the historic downtown Meier & Frank Building.

College aff ordability remains a top priority for our Board of Trust-ees, OSU administrators, students and their families. As part of our Student Success Initiative, we are working diligently to ensure that an OSU degree is an aff ordable reality for all qualifi ed Oregonians. Of those students who entered OSU as true freshmen in 2015 and graduated last June, 46.5% graduated with no debt compared to a national average of 34%. Those who graduated with debt, had average debt of $22,000 compared to $29,000 nationally.

OSU continues to develop four-year degree programs at OSU-Cascades, which is preparing for construction of its second academic building as part of plans for an expanded campus footprint. This campus serves students who want to remain in Central Oregon and attend a four-year college. It also provides other resident Oregonians, out-of-state and international students with a high-quality OSU education in a unique small-campus setting.

BICYCLE GOLDOregon State is known for bike-friendly amenities and encouraging bicycling as an easy, healthy transportation option. (League of American Bicyclists)

Oregon State graduates earn a median salary of $101,300 at mid-career, the most of any public university in the state.(Pay Scale)

MID-CAREER SALARY OF ALL PUBLIC SCHOOLS IN OREGON

No. 1

BEST 100 PLACES TO LIVE

TOP 10 BEST COLLEGE TOWNS

No. 3No. 5Corvallis consistently ranks among the nation’s top college towns in multiple surveys, cited for innovation, sustainability, entertainment and affordability. (Livability.com)

Oregon State is nationally recognized for its top-ranked programs in sustainability fields, including forestry, wildlife management, zoology, conservation biology, agricultural sciences and nuclear engineering. (BestColleges.com)

GREENEST UNIVERSITY

No. 10

Edward J. Ray

The university is following a 10-year plan to address building renewals and improvements on its Corvallis campus and within the university’s 14 experiment stations that are located throughout Oregon. Through a combination of university operational funds and bonds, state bonds and donor contributions, this strategy will result in a reduction of the university’s backlog of deferred mainte-nance costs by 25 percent over the next decade.

Oregon State continues its strong commitment to responsible fi nancial management and utilizes a long-range business forecast, composed of a 10-year capital forecast and a 10-year operational forecast aligned with OSU’s strategic plan, to help guide the uni-versity.

As Oregon’s statewide university, we will work to achieve even more for our students and all those we serve in the coming year.



INDEPENDENT AUDITORS’ REPORT

Members of the Board of TrusteesOregon State UniversityCorvallis, Oregon

Report on the Financial Statements

We have audited the accompanying fi nancial statements of the business-type activities and aggregate discretely presented component units of the Oregon State University (the University), a component unit of the State of Oregon, as of and for the years ended June 30, 2019 and 2018, and the related notes to the fi nancial statements, which collectively comprise the University’s basic fi nancial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these fi nancial statements based on our audits. We did not audit the 2019 and 2018 fi nancial statements of the aggregate discretely presented component units, the Oregon State University Founda-tion and the Agricultural Research Foundation, which represent 100 percent of the assets, net assets, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Oregon State University Founda-tion and the Agricultural Research Foundation is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fi nancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial state-ments are free from material misstatement. The fi nancial statements of the discretely presented component units were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of mate-rial misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signifi cant accounting estimates made by manage-ment, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, based on our audit and the reports of other auditors, the fi nancial statements referred to above present fairly, in all material respects, the respective fi nancial position of the business-type activities and aggregate discretely pre-sented component units of the Oregon State University as of June 30, 2019 and 2018, and the respective changes in fi nan-



cial position and, where applicable, cash fl ows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

During fi scal year ended June 30, 2019, the University adopted GASB Statement No. 83, Asset Retirement Obligations. As a result of the implementation of this standard, the University reported a restatement for the change in accounting principle (see Note 1 to the fi nancial statements) as of July 1, 2017. Our auditors’ opinion was not modifi ed with respect to the restatement.

Other Matters

Required Supplementary InformationAccounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of the University’s contributions to pension and Other Postemployment Benefi t (OPEB) plans, and schedules of the University’s proportionate share of pension and OPEB plans as listed in the table of contents (collectively referred to as required supplementary information) be presented to supplement the basic fi nancial statements. Such infor-mation, although not a part of the basic fi nancial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of fi nancial reporting for placing the basic fi nancial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic fi nancial statements, and other knowledge we obtained during our audit of the basic fi nancial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with suffi cient evidence to express an opinion or provide any assurance.

Other InformationOur audit was conducted for the purpose of forming opinions on the fi nancial statements that collectively comprise the University’s basic fi nancial statements. The Message from the President is presented for purposes of additional analysis and are not a required part of the basic fi nancial statements.

The Message from the President has not been subjected to the auditing procedures applied in the audit of the basic fi nan-cial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2019, on our consideration of the University’s internal control over fi nancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over fi nancial reporting and compliance and the results of that testing, and not to provide an opinion on the eff ectiveness of University’s internal control over fi nancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering University’s internal control over fi nancial reporting and compliance.

CliftonLarsonAllen LLP

Denver, ColoradoOctober 31, 2019

a



Management’s Discussion and AnalysisFor the Years Ended June 30, 2019 and 2018

IntroductionThe following Management’s Discussion and Analysis (MD&A) provides an overview of the fi nancial position and activities of Oregon State University (OSU) for the years ended June 30, 2019, 2018, and 2017. OSU is comprised of a main campus in Corvallis and a branch campus in Bend, along with the Hatfi eld Marine Science Center in Newport, Ecampus, and Extension Service, Agricultural Experiment Stations and Forest Research Laboratories throughout the state.

Annual Full-Time Equivalent (FTE) Student Enrollment Summary

Understanding the Financial StatementsThe MD&A focuses on OSU as a whole and is intended to foster a greater understanding of OSU’s fi nancial activities. Since this presentation includes summarized formats, it should be read in conjunction with the fi nancial statements that have the following six components:

Independent Auditors’ Report presents an unmodifi ed opinion rendered by CliftonLarsonAllen LLP, an independent certifi ed public accounting fi rm, on the fairness in presentation of the fi nancial statements.

Statement of Net Position (SNP) presents a snapshot of OSU’s assets, deferred outfl ows of resources, liabilities and deferred infl ows of resources under the accrual basis of accounting at the end of each fi scal year presented. The SNP helps the reader understand the types and amounts of assets available to support operations, how much OSU owes to vendors and bondholders, and OSU’s net position, delineated based upon availability for future expenditures.

Statement of Revenues, Expenses, and Changes in Net Position (SRE) presents OSU’s revenues and expenses categorized between operating, nonoperating and other related activities. The SRE reports OSU’s operating results for each fi scal year presented.

Statement of Cash Flows (SCF) provides information about OSU’s sources and uses of cash during the fi scal year. The SCF classifi es sources and uses of cash into four categories of cash either provided or used by: operating activities, noncapital fi nancing activities, capital and related fi nancing activities and investing activities.

Notes to the Financial Statements (Notes) provide additional information to clarify and expand on the fi nancial statements.

Component Units, comprised of two supporting founda-tions, are combined and reported separately in the OSU fi nancial statements and in Note 2 Cash and Investments and Note 21 University Foundations.

The MD&A provides an objective analysis of OSU’s fi nancial activities based on currently known facts, decisions, and conditions. The analysis is about OSU as a whole and is not broken out by individual campuses, schools, colleges or divisions. The MD&A discusses the current and prior year results in comparison to the respective year’s prior year. Due to rounding and presentation, summary numbers in the MD&A may diff er slightly from those in the fi nancial statement schedules. Unless otherwise stated, all years refer to the fi scal year ended June 30.

Financial SummaryOSU maintained its solid fi nancial condition and healthy operating performance during fi scal year 2019.

Total assets increased by $169 million, or 10 percent, at the year’s end. This increase was driven mostly by $129 million and $72 million increases in total cash and cash equivalents, and net capital assets, respectively. Investments decreased by $35 million while the remaining asset categories in-creased by a net of $3 million.

Deferred outfl ows increased by $8 million, due mostly to an increase in deferred outfl ows related to the net pension liability.

Total liabilities increased by $115 million, or 10 percent, during 2019 primarily due to the issuance of $140 million in Revenue Bonds and a $12 million increase in accounts payable and accrued liabilities. These increases were primarily off set by a $15 million decrease in contracts payable to the state, and a $25 million decrease in the university’s line of credit.

Deferred infl ows increased by $27 million, due mostly to an increase in deferred infl ows related to the net pension liability.

Total net position increased by $35 million during fi scal year 2019 primarily due to a $76 million increase in net invest-ment in capital assets. Unrestricted net position decreased by $38 million, which slightly off set the larger increase.

Total revenues increased by $75 million, or 6 percent, in 2019 over 2018. This increase was widely distributed among most income categories and was led by increases in capital grants and gifts of $26 million, government appropriations of $11 million, educational and other revenue of $14 million, investment activity of $9 million, and student tuition and fees of $7 million, with the remaining categories accounting for an additional net increase of $8 million.

2019 2018 2017 2016 2015

Corvallis 20,745 21,182 21,608 21,658 21,939Cascades 810 767 709 650 600Ecampus 6,659 6,271 5,513 4,731 4,089Total 28,214 28,220 27,830 27,039 26,628




Operating expenses increased by $42 million in 2019, or 4 percent, over 2018. This increase was spread among most categories and was led by increases in instruction of $15 mil-lion, public service of $14 million, other operating expense of $11 million, and academic support of $4 million. These increases were off set by slight decreases in student services, auxiliary programs, research, and student aid.

Beginning net position for 2017 and 2018 was restated and reduced due to the cumulative eff ect of the retroactive implementation of GASB Statement No. 83, Asset Retirement Obligations. See Note 10 Asset Retirement Obligations for more information.

Statement of Net PositionThe term “Net Position” refers to the diff erence between assets and deferred outfl ows of resources, and liabilities and deferred infl ows of resources, and is an important indicator of OSU’s current fi nancial condition. Changes in net position that occur over time indicate improvement or deterioration in OSU’s fi nancial condition.

The following chart summarizes OSU’s assets, deferred outfl ows of resources, liabilities, deferred infl ows of resources, and net position (in millions):

Condensed Statement of Net Position

Total Assets and Deferred Outfl ows of ResourcesTotal assets increased by $169 million, or 10 percent, during the year ended 2019 due primarily to an increase in cash and net capital assets, off set somewhat by a decrease in invest-ments. Total assets increased by $173 million, or 11 percent, during the year ended 2018 due to increases in all categories of assets except for a slight decrease in inventory.

Comparison of fi scal year 2019 to fi scal year 2018

Current Assets increased by $149 million, or 65 percent, primarily due to:

• Current cash and cash equivalents increased by $145million due primarily to a revenue bond sale and a portionof the proceeds being held for investment but not yetinvested at year end.

• Accounts receivable increased by $4 million. Increasesin receivables related to federal grants and contracts,student tuition and fees and from the component unitswere somewhat off set by decreases in receivablesfor capital construction grants, auxiliaries, and stateand other grants. See Note 3 Accounts Receivable foradditional information.

• Prepaid expenses increased by $3 million due primarily toan increase in general operations prepaid expenses.

• Current notes receivable decreased by $1 million dueprimarily to a decrease in Perkins loans receivable. SeeNote 4 Notes Receivable for additional information.

Noncurrent (Noncapital) Assets decreased by $52 million, or 17 percent.

• Noncurrent cash and cash equivalents decreased by $15million due primarily to a spend down of revenue bondcash for capital construction held from the previous year.

• Investments decreased by $35 million due primarily to adecrease in cash available for general investments relatedto the timing of the investment of the revenue bondproceeds.

• Noncurrent notes receivable decreased by $3 millionprimarily as the result of a decrease in Perkins loansreceivable. See Note 4 for additional information.

• OPEB asset increased by $2 million. See Note 17Other Post-employment Benefi ts (OPEB) for additionalinformation.

Capital Assets, Net increased by $72 million, or 6 percent. See detailed information on Capital Assets in this MD&A for additional information on this change.

Deferred Outfl ows of Resources increased by $8 million, or 6 percent.

• Deferred outfl ows related to the net pension liabilityincreased by $7 million.

• Deferred outfl ows related to the OPEB asset and liabilitiesincreased by less than $1 million.

• Deferred outfl ows related to the asset retirementobligation decreased by less than $1 million.

• See Note 6 Deferred Outfl ows and Infl ows of Resourcesfor additional information.

As of June 30, 2019 2018 2017

Current Assets 380$ 231$ 196$ Noncurrent Assets 260 312 230 Capital Assets, Net 1,255 1,183 1,127

Total Assets 1,895$ 1,726$ 1,553$

Deferred Outflows of Resources 135$ 127$ 188$

Current Liabilities 246$ 213$ 180$ Noncurrent Liabilities 990 908 806

Total Liabilities 1,236$ 1,121$ 986$

Deferred Inflows of Resources 34$ 7$ 3$

Net Investment in Capital Assets 787$ 711$ 706$ Restricted - Nonexpendable 5 6 5 Restricted - Expendable 67 69 86 Unrestricted (99) (61) (45)

Total Net Position 760$ 725$ 752$





Current Assets increased by $35 million, or 18 percent, primarily due to:

• Current cash and cash equivalents increased by $15million. Overall, higher cash balances in operating fundswere off set by a slight increase in the proportion of cashthat was transferred to investments in 2018, resulting in anet higher cash balance at year end.

• Accounts receivable increased by $9 million. Increases inreceivables related to federal grants and contracts, capitalconstruction and auxiliary operations were only somewhatoff set by decreases in receivables from the componentunits and other receivables. See Note 3 for additionalinformation.

• Prepaid expenses increased by $3 million due primarilyto capital construction costs related to the OSU PortlandCenter remodel of the Meier and Frank building. OSUprovided up-front funding for tenant improvements on theMeier and Frank building in downtown Portland, which itis leasing for expansion of the OSU Portland Center.

Noncurrent (Noncapital) Assets increased by $82 million, or 36 percent.

• Noncurrent cash and cash equivalents increased by $17million due primarily to increased revenue bond cash heldfor construction at year end. Revenue bond cash fromprevious years’ sales was transferred to constructionprojects prior to year end, but has not been spent down.

• Investments increased by $63 million. Increased cashbalances available for investment resulted in increasedinvestments at year end.

• Noncurrent notes receivable increased by $2 millionprimarily as the result of an increase in Perkins loansreceivable and associated allowance for doubtfulaccounts. See Note 4 for additional information.

Capital Assets, Net increased by $56 million, or 5 percent. See detailed information on Capital Assets in this MD&A for additional information on this change.

Deferred Outfl ows of Resources decreased by $61 million, or 32 percent.

• Deferred outfl ows related to the net pension liabilitydecreased by $62 million.

• The implementation of GASB Statement No. 75 added $2million in deferred outfl ows related to the OPEB asset andliabilities.

• Deferred outfl ows related to the asset retirementobligation decreased by less than $1 million.

• See Note 6 for additional information.

Capital Assets and Related Financing Activities

Capital AssetsAt June 30, 2019, OSU had $2.1 billion in capital assets, less accumulated depreciation of $871 million, for net capital assets of $1.3 billion. At June 30, 2018, OSU had $2.0 billion in capital assets, less accumulated depreciation of $821 million, for net capital assets of $1.2 billion. OSU is commit-ted to a comprehensive program of capital investment and facility maintenance that includes addressing current main-tenance needs and minimizing OSU’s deferred maintenance backlog. State, federal, private, debt, and internal funding were all used to accomplish OSU’s capital objectives.

2019 Capital Assets, Net $1,255 Million

Changes to Capital Assets

(in millions)

Capital additions totaled $133 million for 2019, $113 mil-lion for 2018, and $111 million for 2017.

During 2019, capital asset additions included $98 million for construction in progress (CIP) ; $19 million for equipment; $11 million for buildings; and $2 million for infrastructure. During 2018, capital asset additions included $72 million for CIP; $14 million for equipment; $21 million for build-ings; and $3 million for infrastructure. During 2017, capital

Buildings76%

Land and Improvements

4%

Capitalized Collections

2%

Construction in Progress

10%

Equipment and Other

7%

Library Materials

<0.5%

Intangibles<0.5%

As of June 30, 2019 2018 2017

Capital Assets, Beginning of Year 2,004$ 1,900$ 1,802$

Add: Purchases/Construction 133 113 111

Less: Retirements/Adjustments (11) (9) (13)

Total Capital Assets, End of Year 2,126 2,004 1,900

Accum. Depreciation, Beginning of Year (821) (773) (730)

Add: Depreciation Expense (59) (56) (55)

Less: Retirements/Adjustments 9 8 12

Total Accum. Depreciation, End of Year (871) (821) (773)

Total Capital Assets, Net, End of Year 1,255$ 1,183$ 1,127$




asset additions included $83 million for CIP; $20 million for equipment; $3 million for buildings; and $2 million for land improvements.

Key projects still in progress at the end of 2019 include the Oregon Forestry Science Complex, Hatfi eld Marine Science Center Marine Studies Building, the Upper Level Under-graduate/Graduate Student Housing building, Finley Hall, and Magruder Hall.

During 2019, $57 million in capital projects were completed and placed into service, including the Advanced Wood Prod-ucts Laboratory, Gilbert Hall renovation, HP11 improve-ment, and Nypro Building renovation.

See Note 5 Capital Assets for additional information.

Debt AdministrationDuring 2019, long-term debt held by OSU increased by $124 million, or 25 percent, from $493 million to $617 million.

• OSU issued an additional $140 million (par value) of newRevenue Bonds earmarked for construction. The bondswere sold at par.

• OSU made debt service principal payments totalling $15million on outstanding long-term debt.

• OSU’s remaining obligation for accreted interest andpremiums on outstanding debt decreased by a net $1million.

During 2018, long-term debt held by OSU increased by $55 million, or 13 percent, from $438 million to $493 million.

• OSU issued an additional $73 million (par value) of newRevenue Bonds earmarked for construction. The bondswere sold at par.

• OSU made debt service principal payments totalling $16million on outstanding long-term debt.

• OSU’s remaining obligation for accreted interest andpremiums on outstanding debt decreased by a net $2million.

See Note 9 Long-Term Liabilities for additional information.

Long-term Debt(in millions)

Total Liabilities and Deferred Infl ows of ResourcesTotal liabilities increased by $115 million, or 10 percent, dur-ing 2019 primarily due to an increase in long-term liabilities related to the issuance of Revenue Bonds during 2019, an increase in accounts payable and accrued liabilities and an increase in the net pension liability. During 2018, total li-abilities increased by $135 million, or 14 percent, primarily due to an increase in long-term liabilities associated with the issuance of Revenue Bonds, a $47 million increase in the line of credit liability, and the recording of a $22 million Perkins loan program liability.


Current Liabilities increased by $33 million, or 15 percent, primarily due to:

• Accounts payable and accrued liabilities increased by $12million. Increased services and supplies payable associatedwith grants and general operations, as well as increasedcapital construction retainage payable were off set bya decrease in services and supplies payable associatedwith capital construction projects. See Note 7 AccountsPayable and Accrued Liabilities for additional information.

• The current portion of long-term liabilities increased by$22 million due mainly to the remaining balance of theline of credit being classifi ed as current. See Note 9 foradditional information.

Noncurrent Liabilities increased by $82 million, or 9 per-cent.

• The noncurrent portion of long-term liabilities increasedby $74 million due primarily to the issuance of $140million in Revenue Bonds during 2019 which was off set bya decrease of $47 million in the line of credit liability and adecrease of $14 million contracts payable to the state. Seediscussion of Debt Administration earlier in this MD&Aand Note 9 for additional information.

$-

$100

$200

$300

$400

$500

$600

2019 2018 2017

Oregon Departmentof Energy Loans

General RevenueBonds

State of OregonContracts Payable




• The asset retirement obligation was relatively unchanged.See Note 10 Asset Retirement Obligations for additionalinformation.

• Net pension liability increased by $8 million. See Note 16Employee Retirement Plans for additional information.

• The OPEB Liability was relatively unchanged. See Note 17Other Post-employment Benefi ts (OPEB) for additionalinformation.

Deferred Infl ows of Resources increased by $27 million due to a $26 million increase related to the net pension liability, and a $1 million increase related to the OPEB asset and liabilities. See Note 6 Deferred Outfl ows and Infl ows of Resources for detailed information on this change.


Current Liabilities increased by $33 million, or 18 percent, primarily due to:

• Accounts payable and accrued liabilities increased by $16million. Increased services and supplies payable associatedwith capital construction projects, grants, and generaloperations as well as increased payroll withholdingspayable were off set by a decrease in capital constructioncontract retainage payable.

• Unearned revenues increased by $6 million. Increases inunearned revenue associated with summer session tuitionand fees, grants and contracts, and other operations wereoff set by a decrease in unearned revenue associated withauxiliaries.

• The current portion of long-term liabilities increased by$5 million due mainly to the accrual of the Perkins loanprogram liability. With the termination of the federalPerkins program, OSU was required to reclassify thefederal capital contribution from net position to a long-term liability since those funds are now required to be paidback to the federal government. See Note 1 Organizationand Summary of Accounting Policies, Section X PerkinsLoan Program Termination and Note 9 for additionalinformation.

Noncurrent Liabilities increased by $102 million, or 13 percent.

• The noncurrent portion of long-term liabilities increasedby $119 million due primarily to the issuance of RevenueBonds during 2018, an increase in the line of creditliability, and the accrual of the Perkins loan programliability. See discussion of Debt Administration earlier inthis MD&A and Note 9 for additional information.

• Net pension liability decreased by $29 million. See Note16 for additional information.

• The implementation of GASB Statement No. 75 added$12 million in OPEB liability. See Note 17 for additionalinformation.

Deferred Infl ows of Resources increased by $4 million or 133 percent.

• Deferred infl ows related to the net pension liabilityincreased by $3 million.

• The implementation of GASB Statement No. 75 added $1million in deferred infl ows related to the OPEB asset andliabilities.

See Note 6 for additional information.

Total Net PositionTotal net position (TNP) increased by $35 million, or 5 percent, during 2019. TNP benefi ted from a $76 million in-crease in net investment in capital assets, but was negatively impacted by a reduction in nonexpendable net position of $1 million, a reduction in unrestricted net position of $38 million and a reduction of restricted expendable net position of $2 million.

TNP decreased by $27 million, or 4 percent, during 2018. TNP benefi ted from a $5 million increase in net investment in capital assets, as well as an increase in nonexpendable net position of $1 million, but was negatively impacted by a reduction in unrestricted net position of $16 million and a reduction of restricted expendable net position of $17 mil-lion.

The graph below illustrates how the composition of net position has changed since 2017. (in millions)


Net Investment in Capital Assets increased by $76 million, or 11 percent.

• Capitalized acquisitions net of disposals added $122million, which was off set by a $50 million increase toaccumulated depreciation. Additionally, there was a netdecrease of $4 million in long-term debt outstandingattributable to the capital assets. See Note 5 CapitalAssets and Note 9 Long-Term Liabilities for additionalinformation.

$(100)

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

2019 2018 2017

Unrestricted

Restricted -Expendable

NonexpendableEndowments

Net Investment inCapital Assets




Restricted Expendable Net Position decreased by $2 mil-lion, or 3 percent.

• Net position restricted for gifts, grants and contractsdecreased by $5 million due primarily to a decrease in themarket value of endowment funds and a decrease in theaggregate net position of restricted grant funds.

• Net position restricted for student loans was relativelyunchanged. Increases in cash balances were off set bydecreases in student loan receivables.

• Net position restricted for capital projects was relativelyunchanged.

• Net position restricted for debt service increased by $2million due to an increase in cash on hand.

• Net Position restricted for OPEB asset increased by $2million and is equal to the Net OPEB Asset reported innoncurrent assets.

Unrestricted Net Position decreased by $38 million, or 62 percent.

• A decline in unrestricted operating performance, whichincludes education, auxiliary and general business typeactivities, resulted in a decrease to unrestricted netposition of $12 million.

• Changes associated with the PERS net pension liabilitydecreased unrestricted net position by $28 million, dueprimarily to a signifi cant increase in the deferred infl owsof resources associated with the net pension liability. SeeNote 6 and Note 16 for additional information.

• The OPEB asset, liabilities and associated deferredoutfl ows and infl ows of resources were relativelyunchanged.

• Decreases associated with year-end liability accruals forthe PERS state and local government rate pool (SLGRP)and compensated absences increased unrestricted netposition by $2 million.

See Note 11 Unrestricted Net Position for additional infor-mation.


Net Investment in Capital Assets increased by $5 million, or 1 percent.

• Capitalized acquisitions net of disposals added $104million, which was off set by a $48 million increase toaccumulated depreciation. Additionally, there was a netincrease of $51 million in long-term debt outstandingattributable to the capital assets as a result of a revenuebond sale during fi scal year 2018. See Note 5 and Note 9for additional information.

Restricted Expendable Net Position decreased by $17 mil-lion, or 20 percent.

• Net position restricted for gifts, grants and contractsincreased by $4 million due primarily to an increase in themarket value of endowment funds managed by the OSUFoundation.

• Net position restricted for student loans decreased$22 million due to the termination of the Perkins loanprogram and the establishment of a liability for theamount of federal capital contribution due to the federalgovernment. See Note 1, Section X for additional details.

• Net positions restricted for capital projects and debtservice were relatively unchanged.

• The implementation of GASB Statement No. 75,Accounting and Financial Reporting for PostemploymentBenefi ts Other Than Pensions, resulted in the creation ofa new restricted expendable net position for the OPEBasset. The restricted expendable OPEB asset is equal tothe Net OPEB Asset of $1 million reported in noncurrentassets.

Unrestricted Net Position decreased by $16 million, or 36 percent.

• Improved unrestricted operating performance, whichincludes education, auxiliary and general business typeactivities, increased unrestricted net position by $30million.

• Changes associated with the PERS net pension liabilitydecreased unrestricted net position by $36 million, dueprimarily to a signifi cant decrease in the deferred outfl owsof resources associated with the net pension liability. SeeNote 6 and Note 16 for additional information.

• The implementation of GASB Statement No. 75 andthe reporting of net OPEB liabilities, coupled with theassociated deferred outfl ows and infl ows for thoseliabilities and the OPEB asset, resulted in a net decrease of$11 million.

• Decreases associated with year-end liability accruals forthe PERS state and local government rate pool (SLGRP)and compensated absences increased unrestricted netposition by $2 million.

See Note 11 for additional information.

Statement of Revenues, Expenses and Changes in Net Position Due to the classifi cation of certain key revenues as nonoperating revenue, OSU normally shows a loss from operations. State general fund appropriations, nonexchange grants and noncapital gifts, although considered nonoperating revenue under GASB Statement No. 35, Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities—an amendment




of GASB Statement No. 34, and refl ected accordingly in the nonoperating section of the SRE, are used solely to support the operations of the university.

The following summarizes the revenues and expenses of OSU (in millions):

Condensed Statement of Revenues, Expenses and Changes in Net Position

RevenuesTotal revenues increased by $75 million, or 6 percent, in 2019 over 2018. This increase was due to an increase in almost all categories of revenue, with only a slight decrease in nonoperating and other items.

Total Operating, Nonoperating and Other Revenues(in millions)

Total Operating, Nonoperating, Other Revenues and Special Items(in millions)

Operating RevenuesOperating revenues increased by $29 million in 2019, or 4 percent, over 2018, to $838 million. Operating revenues increased by $41 million in 2018, or 5 percent, over 2017, to $809 million. The increases in 2019 and 2018 were due to increases in all categories of operating revenue.


Net Student Tuition and Fees increased by $7 million, or 2 percent.

• Higher tuition and fee rates accounted for $14 million of the increase.

• Fee remissions, scholarship allowances and bad debt allowances reduced tuition and fees by $7 million more than in the prior year.

Federal, State and Nongovernmental Grants and Con-tracts increased by $5 million, or 2 percent.

• Federal grant and contract revenues increased by $8 million primarily due to continued increases in cooperative agreements.

• State and local grant and contract revenues were relatively unchanged.

• Nongovernmental grant and contract revenues decreased by $3 million due mainly to a decrease in grants and contracts from commercial businesses.

Auxiliary Enterprise revenues increased by $3 million, or 2 percent.

• Housing and dining revenues increased by $2 million due to increased rates and occupancy for room and board and increased miscellaneous meal plan revenue.

For the Years Ended June 30, 2019 2018 2017

Operating Revenues 838$ 809$ 768$ Operating Expenses 1,213 1,171 1,100

Operating Loss (375) (362) (332)

Nonoperating Revenues,Net of Expenses 334 294 295

Other Revenues, Net of Expenses 76 52 50 35 (16) 13

Net Position, Beginning of Year, Restated 725 741 739

Net Position, End of Year 760$ 725$ 752$

Increase (Decrease) in Net Position


Student Tuition and Fees 340$ 333$ 316$ Grants and Contracts 246 241 221 Auxiliary Enterprises 178 175 172 Educational and Other 74 60 59

Total Operating Revenues 838 809 768

Government Appropriations 238 227 204 Financial Aid Grants 45 43 43 Gifts 57 56 53 Investment Activity 21 12 13 Capital Grants and Gifts 76 50 49 Nonoperating and Other Items (1) 2 4

Total Nonoperating and Other Revenues 436 390 366

Total Revenues 1,274$ 1,199$ 1,134$

$- $50 $100 $150 $200 $250 $300 $350

Student Tuition and Fees

Operating Grants and Contracts

Auxiliary Enterprises

Educational and Other

Government Appropriations

Other

2019 2018 2017




• Athletics revenues increased by $3 million. Decreases inticket sales were off set by increases in guarantees, bowlincome, athletic conference TV shares and sponsorshipincome.

• Health services revenues decreased by $1 million duemainly to decreased income from medical supply sales andother medical services.

• Other auxiliary revenues decreased by $1 million duemainly to decreased student incidental fee revenue andincreased refunds.

Educational and Other revenues increased by $14 million, or 23 percent.

• Educational department sales and services revenuesincreased by $7 million due mainly to increasedsales, services, test fees, and noncredit workshoprevenues, off set by decreases in conference income andmiscellaneous fees.

• Other operating revenues increased by $7 million. A fi rein Burt Hall on November 30, 2018 resulted in $7 millionin insurance recoveries during fi scal year 2019.


Net Student Tuition and Fees increased by $17 million, or 5 percent.

• Higher tuition and fee rates accounted for $13 million ofthe increase.

• A 1.4 percent FTE student enrollment increase added $6million in tuition and fees.

• Fee remissions, scholarship allowances and bad debtallowances reduced tuition and fees by $2 million morethan in the prior year.

Federal, State and Nongovernmental Grants and Con-tracts increased by $20 million, or 9 percent.

• Federal grant and contract revenues increased by $19million primarily due to continued increases in cooperativeagreements.

• State and local grant and contract revenues decreasedby $3 million due primarily to decreases in state grants,contracts and cooperative agreements.

• Nongovernmental grant and contract revenues increasedby $4 million due mainly to an increase in grants andcontracts from the Agricultural Research Foundation.

Auxiliary Enterprise revenues increased by $3 million, or 2 percent.

• Housing and dining revenues increased by $3 million dueto increased room and board and miscellaneous meal planrevenue.

• Athletics revenues decreased by $5 million primarily asthe result of decreased ticket sales and a one-time spikein revenue in 2017 associated with the departure of the

Athletic Director and the buy-out of his contract.

• Health services revenues increased by $2 million duemainly to increased income from medical supply sales,pharmacy sales and non-employee insurance premiums.

• Other auxiliary revenues increased by $3 million duemainly to student incidental fee revenue and decreasedrefunds.

Educational and Other revenues increased by $1 million, or 2 percent.

• Educational department sales and services revenuesincreased by $1 million due mainly to increased services,fees, surplus sales and conference and workshoprevenues, off set by a decrease in lease income.

Nonoperating and Other RevenuesTotal nonoperating and other revenues increased by $46 mil-lion during 2019 primarily due to increases in government appropriations and capital grants and gifts. The increase in total nonoperating and other revenues of $24 million during 2018 resulted mainly from increases in government appro-priations and gifts.


Government Appropriations increased by $11 million, or 5 percent.

• State appropriations increased by $13 million due toincreased funding received in support of the operations ofthe university and statewide public services.

• State lottery appropriations in support of outdoor schoolwere relatively unchanged from the prior year. Outdoorschool for middle school students is administered by thecooperative extension services on behalf of the state.

• Federal and county appropriations in support of thestatewide public services decreased by $2 million.

• Debt service appropriations from the state wereunchanged.

• See Note 15 Government Appropriations for additionalinformation.

Financial Aid Grants were increased by $2 million, or 5 percent. Decreases in federal work study assistance were off set by increases in federal Pell grants and Oregon opportunity grants.

Gifts increased by $1 million, or 2 percent. Increased gifts from the OSU Foundation and private sources were off set by decreased gifts from commercial and other foundations as well as decreased gifts in-kind from various sources.

Investment Activity revenues increased by $9 million, or 75 percent. See Note 13 Investment Activity for additional information relating to these changes.

Capital Grants and Gifts increased by $26 million, or 52 percent. Increased XI-G and XI-Q capital grant revenue from




the state as well as increased gift revenue from the OSU Foundation and other foundations and associations were slightly off set by decreased federal and commercial grants and contracts for capital construction.

Nonoperating and Other Items decreased by $3 million, or 150 percent.


Government Appropriations increased by $23 million, or 11 percent.

• State appropriations increased by $9 million due to increased funding received in support of the operations of the university and statewide public services.

• OSU received $12 million in state lottery appropriations in support of outdoor school for middle school students, which cooperative extension services administers on behalf of the state.

• Federal and county appropriations in support of the statewide public services increased by $2 million.

• Debt service appropriations from the state were unchanged.

• See Note 15 for additional information.

Financial Aid Grants were relatively unchanged. Decreases in federal work study assistance, state need grants and Ford Family Foundation scholarships were off set by increases in federal Pell grants.

Gifts increased by $3 million, or 6 percent due mainly to increased gifts from the OSU Foundation, other foundations and gifts in-kind from various sources.

Investment Activity revenues decreased by $1 million, or 8 percent. See Note 13 for additional information.

Capital Grants and Gifts increased by $1 million, or 2 percent. Increased XI-G and XI-Q capital grant revenue from the state was off set by decreased gift revenue from the OSU Foundation, other foundations and associations, and federal grants and contracts for capital construction.

Nonoperating and Other Items decreased by $2 million, or 50 percent, due mainly to the state refunding previously held XI-F(1) General Obligation Bonds in the prior year. The refunding resulted in a net reduction in long-term contracts payable by OSU to the state. The decrease was off set by a slight increase in permanent endowments.

ExpensesOperating ExpensesOperating expenses increased by $42 million in 2019, or 4 percent, over 2018, to $1,213 million. Increases were seen in most categories of operating expenses with the biggest increases in instruction, public service and other operat-ing expenses. These increases were slightly off set by small decreases in research, student services, auxiliary programs and student aid.

Operating expenses increased by $71 million in 2018, or 6 percent over 2017, to $1,171 million. Increases were seen in all categories of operating expenses except other operat-ing expenses which decreased slightly and student aid which was unchanged from the prior year.

The following table and chart summarize operating expenses by functional classifi cation (in millions):

Operating Expenses by Function

2019 Operating Expenses by Function

The implementation of GASB Statement Nos. 68 and 71 in 2015 and GASB Statement No. 75 in 2018 has had a signifi cant impact on the operating expenses reported by OSU. See the table on the next page for the impact of GASB Statements Nos. 68, 71 and 75 on the functional expenses of the university.


Instruction 322$ 307$ 291$ Research 216 217 208 Public Service 145 131 108 Academic Support 90 86 80 Student Services 34 36 34 Auxiliary Programs 181 183 170 Institutional Support 91 88 85 Operations & Maintenance of Plant 40 39 36 Student Aid 30 31 31 Other Operating Expenses 64 53 57

Total Operating Expenses 1,213$ 1,171$ 1,100$

Auxiliary Programs

15%

Institutional Support

8%

Operation and Maintenance of

Plant3%

Student Aid2%

Other5%

Instruction27%Research

18%

Public Service

12%

Academic Support

7%

Student Services

3%




The following tables show the eff ect of GASB Statement Nos. 68, 71 and 75 on operating expenses across the func-tional classifi cations (in millions):

Effect of GASB Statement Nos. 68, 71 and 75 on Expenses by Function

GASB Statement Nos. 68, 71, and 75 have resulted in in-creases to total operating expenses of $27, $36, and $40 mil-lion in 2019, 2018, and 2017, respectively. The $103 million aggregate total for the three year period has had a marked impact on the university’s reported operating performance and net position.

Operating Expenses by Natural Classifi cationDue to the way in which expenses are incurred by OSU, vari-ances are presented and explained by analyzing changes in the natural classifi cation of expenses. Each natural classifi ca-tion analysis can be applied to multiple functional expense caption items. See Note 14 Operating Expenses by Natural Classifi cation for additional information.

The following summarizes operating expenses by natural classifi cation (in millions):

2019 Operating Expenses by Natural Classifi cation


Compensation and Benefi t costs increased by $12 million, or 2 percent.

• Salary and wage costs increased by $15 million dueprimarily to wage increases for faculty, staff and studentemployees.

• Retirement and health insurance costs increased by $6million due primarily to increased insurance rates.

• Other payroll expenses decreased by $1 million.

• Adjustments and accruals to compensation andbenefi ts associated with the net pension liabilityreporting requirement of GASB Statement Nos. 68and 71 decreased by $8 million. See Note 16 EmployeeRetirement Plans for additional information on thisvariance.

• Adjustments and accruals to compensation and benefi tsassociated with the OPEB asset and liability reportingrequirement of GASB Statement No. 75 were relativelyunchanged. See Note 17 Other Post-employementBenefi ts (OPEB) for additional information.

Services and Supplies expenses increased by $30 million, or 10 percent. Increases in general supplies, maintenance and repairs, fees and services for contract education services, and other services and supplies were slightly off set by decreases in rentals and leases, medical and scientifi c services and supplies, and subcontract expenses.

For the Year Ended June 30, 2019As

Reported

Without GASB 68/71

& 75 Difference

Instruction 322$ 314$ 8$ Research 216 212 4Public Service 145 141 4Academic Support 90 88 2Student Services 34 33 1Auxiliary Programs 181 178 3Institutional Support 91 90 1Operation & Maintenance of Plant 40 37 3Student Aid 30 30 -Other Operating Expenses 64 63 1

Total Operating Expenses 1,213$ 1,186$ 27$


Reported

Without GASB 68/71

& 75 Difference




Reported Without

GASB 68/71 Difference




Compensation and Benefits 786$ 774$ 736$ Services and Supplies 329 299 269 Scholarships and Fellowships 37 39 39 Depreciation and Amortization 59 56 55 Other 2 3 1

Total Operating Expenses 1,213$ 1,171$ 1,100$

Compensation and Benefits

65%

Services and Supplies

27%

Scholarships and Fellowships

3%

Depreciation and Amortization

5% Other0%




Scholarships and Fellowships costs decreased by $2 million, or 5 percent. A decrease in federal aid was slightly off set by increases in state, institutional, and OSU Foundation aid.

Depreciation and Amortization expense increased by $3 million, or 5 percent. During 2019, $57 million in capital projects were completed and placed into service, including the Advanced Wood Products Laboratory, Gilbert Hall reno-vation, HP11 improvement, and Nypro Building renovation.


Compensation and Benefi t costs increased by $38 million, or 5 percent.

• Salary and wage costs increased by $20 million due toadditional staff and faculty hires combined with wageincreases.

• Wage costs further increased by $2 million due toincreased graduate student employment.

• Wage costs decreased by $2 million due to decreasedundergraduate student employment.

• Retirement and health insurance costs increased by $21million due primarily to increased retirement contributionsand insurance rates.

• Other payroll expenses increased by $3 million.

• Adjustments and accruals to compensation and benefi tsassociated with the net pension liability reportingrequirement of GASB Statement Nos. 68 and 71decreased by $5 million. See Note 16 for additionalinformation.

• Adjustments and accruals to compensation and benefi tsassociated with the OPEB asset and liability reportingrequirement of GASB Statement No. 75 decreased by $1million. See Note 17 for additional information.

Services and Supplies expenses increased by $30 million, or 11 percent. Increases in supplies, fees and services for con-tract education services, communications and conferences were slightly off set by decreases in subcontract expenses.

Scholarships and Fellowships costs was relatively un-changed. Decreases in state and private student aid were off set by increases in federal, institutional and OSU Founda-tion aid.

Depreciation and Amortization expense increased by $1 million, or 2 percent. During 2018, $27 million in capital projects were completed and placed into service, including the Steam Tunnel Utility System improvement, and Agricultural Systems Center.

Nonoperating Expenses


Interest Expense increased by $3 million, or 14 percent, due primarily to increased revenue bond interest.


Gain (Loss) on Sale or Disposal of Fixed Assets decreased by less than $1 million due to fewer disposals in fi scal year 2018.

Interest Expense increased by $2 million, or 10 percent, due primarily to increased revenue bond interest, other loan interest expense and no adjustment for capitalized interest in fi scal year 2018 due to the early implementation of GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. See Note 1 Organization and Summary of Signifi cant Accounting Policies, Section H Capital Assets for additional information.

Perkins Loan Program Termination expense increased by $22 million due to the recording of the Perkins loan program liability for the amount of federal capital contribution (FCC) due back to the U.S. Department of Education (ED). The Perkins loan program has been discontinued by the federal government. OSU will be continuing to collect on Perkins loans outstanding and return the FCC to the ED as it is col-lected. See Note 1, Section X Perkins Loan Program Termi-nation for additional information.


Loss on Sale of Assets (1)$ (1)$ (1)$ Interest Expense (25) (22) (20) Perkins Loan Program Termination - (22) -

Total Nonoperating Expenses (26)$ (45)$ (21)$




Economic OutlookFunding for the major activities of OSU comes from a variety of sources: tuition and fees; fi nancial aid programs; state, federal and county appropriations; federal, foundation and other grants; private and government contracts; royalties; and donor gifts and investment earnings. Revenues are also generated through recovery of costs associated with federal grant and contract activities, which serve to off set related administrative and facilities costs.

Public higher education in Oregon continues to face familiar challenges – inadequate state support, pressures to keep education aff ordable and yet improve degree completions, changing student demographics necessitating more support services, and costs associated with mandated participation in state health and retirement systems. State support has recently been holding steady but at levels insuffi cient to signifi cantly relieve students and families of escalating costs and related debt.

Enrollment changes—both in number and in mix—can have the greatest eff ect on the operating budget. The growth we have seen over the past decade is fl attening somewhat, but increasing enrollment is still the primary opportunity for OSU as we look to the future. The university continues to explore opportunities to serve students, whether through an expanding physical presence or being in the forefront of emerging program off erings. Research expenditures continue on an upward trajectory. Regardless of the specifi c external infl uences, the university deploys both long-term and short-term planning strategies to stabilize operations and optimize its ability to execute the mission.

OSU is ultimately subject to the same economic variables that aff ect other entities but maintains its focus on providing quality instruction, research and public service to its students and the citizens of the State, the nation and the world. For detailed information on the state’s economic outlook, Oregon’s Offi ce of Economic Analysis provides quarterly forecasts at its website: https://www.oregon.gov/DAS/OEA/Pages/index.aspx



Statements of Net Position

As of June 30, 2019 2018as Restated

ASSETSCurrent Assets

Cash and Cash Equivalents (Note 2) 223,114$ 78,461$ Collateral from Securities Lending (Note 2) 12,627 13,510 Accounts Receivable, Net (Note 3) 127,661 123,599 Notes Receivable, Net (Note 4) 3,798 4,548Inventories 1,794 1,746Prepaid Expenses 11,416 8,893

Total Current Assets 380,410 230,757 Noncurrent Assets

Cash and Cash Equivalents (Note 2) 27,986 43,176 Investments (Note 2) 212,026 247,248 Notes Receivable, Net (Note 4) 17,497 20,656 Net OPEB Asset (Note 17) 2,626 1,027Capital Assets, Net of Accumulated Depreciation (Note 5) 1,254,622 1,182,980

Total Noncurrent Assets 1,514,757 1,495,087 Total Assets 1,895,167$ 1,725,844$

DEFERRED OUTFLOWS OF RESOURCES (Note 6) 134,799$ 127,959$

LIABILITIESCurrent Liabilities

Accounts Payable and Accrued Liabilities (Note 7) 100,788$ 88,557$ Deposits 1,753 1,704Obligations Under Securities Lending (Note 2) 12,627 13,510 Current Portion of Long-Term Liabilities (Note 9) 68,408 46,896 Current Portion of Asset Retirement Obligation (Note 10) 565 - Unearned Revenues 61,412 62,693

Total Current Liabilities 245,553 213,360 Noncurrent Liabilities

Long-Term Liabilities (Note 9) 650,408 576,074 Net Pension Liability (Note 16) 302,317 293,882 OPEB Liability (Note 17) 18,902 18,960 Asset Retirement Obligation (Note 10) 18,550 19,115

Total Noncurrent Liabilities 990,177 908,031 Total Liabilities 1,235,730$ 1,121,391$

DEFERRED INFLOWS OF RESOURCES (Note 6) 34,558$ 7,202$

NET POSITIONNet Investment in Capital Assets 787,485$ 711,200$ Restricted For:

Nonexpendable Endowments 5,396 5,960Expendable:

Gifts, Grants and Contracts 45,042 49,698 Student Loans 9,749 10,091 Capital Projects 5,533 5,963Debt Service 3,508 1,996OPEB Asset 2,626 1,027

Unrestricted (Note 11) (99,661) (60,725) Total Net Position 759,678$ 725,210$

The accompanying notes are an integral part of these financial statements.

University

(In thousands)



Statements of Financial Position

As of June 30, 2019 2018

ASSETSCash and Cash Equivalents 5,446$ 26,189$ Investments 728,076 692,942 Contributions, Pledges and Grants Receivable, Net 41,475 46,981 Assets Held-For-Sale 7,150 5,559 Assets Held Under Split-Interest Agreements 54,205 47,684 Charitable Trusts Held Outside the Foundation 15,021 15,310 Prepaid Expenses and Other Assets 3,458 3,703 Property and Equipment, Net 28,174 13,168 Total Assets 883,005$ 851,536$

LIABILITIESAccounts Payable and Accrued Liabilities 9,431$ 8,312$ Endowment Assets Held for OSU 48,272 47,976 Accounts Payable to the University 5,204 4,944 Obligations to Beneficiaries of Split-Interest Agreements 24,910 21,514 Deposits and Unearned Revenue 11,145 9,838 Long-Term Liabilities 3 4 Total Liabilities 98,965 92,588

NET ASSETSWithout Donor Restrictions 38,918 31,774 With Donor Restrictions 745,122 727,174 Total Net Assets 784,040 758,948

TOTAL LIABILITIES AND NET ASSETS 883,005$ 851,536$


Component Units

(In thousands)



Statements of Revenues, Expenses and Changes in Net Position

For the Years Ended June 30, 2019 2018as Restated

OPERATING REVENUESStudent Tuition and Fees (Net of Allowances of $84,553

and $77,609, respectively) 340,451$ 332,932$ Federal Grants and Contracts 212,209 203,740 State and Local Grants and Contracts 9,979 10,450 Nongovernmental Grants and Contracts 23,491 26,164 Educational Department Sales and Services 58,801 51,454 Auxiliary Enterprises (Net of Allowances of $3,167

and $2,981, respectively) 177,544 175,300 Other Operating Revenues 15,464 8,569

Total Operating Revenues 837,939 808,609

OPERATING EXPENSESInstruction 321,792 307,402 Research 216,199 216,477 Public Service 145,034 131,223 Academic Support 90,234 86,078 Student Services 33,651 36,313 Auxiliary Programs 181,288 183,396 Institutional Support 91,279 87,482 Operation and Maintenance of Plant 40,401 38,741 Student Aid 29,988 31,004 Other Operating Expenses 63,556 52,487

Total Operating Expenses (Note 14) 1,213,422 1,170,603 Operating Loss (375,483) (361,994)

NONOPERATING REVENUES (EXPENSES)Government Appropriations (Note 15) 237,349 225,847 Financial Aid Grants 44,418 42,731 Gifts 57,205 56,475 Investment Activity (Note 13) 21,286 12,292 Loss on Sale of Assets, Net (596) (555) Interest Expense (25,085) (22,263)Perkins Loan Program Termination (Note 1, Section X) - (21,676)Other Nonoperating Items (589) 835

Total Net Nonoperating Revenues 333,988 293,686 Loss Before Other Revenues (41,495) (68,308)

OTHER REVENUESDebt Service Appropriations (Note 15) 1,073 1,073 Capital Grants and Gifts 75,453 50,279 Changes to Permanent Endowments (563) 824

Total Net Other Revenues 75,963 52,176 Increase (Decrease) In Net Position 34,468 (16,132)

NET POSITIONBeginning Balance, Restated (Note 1, Section AA) 725,210 741,342

Ending Balance 759,678$ 725,210$


(In thousands)

University



Statements of Activities

For the Years Ended June 30, 2019 2018

CHANGE IN NET ASSETS HELD WITHOUT DONOR RESTRICTIONSREVENUES

Grants, Bequests and Gifts 6,713$ 18,479$ Investment Income, Net 8,151 5,359 Net Assets Released From Restrictions and Other Transfers 88,430 78,158 Other Revenues 22,241 21,487

Total Revenues 125,535 123,483

EXPENSESUniversity Support 85,611 82,056 Management and General 13,049 13,391 Development 19,731 18,176

Total Expenses 118,391 113,623 Increase In Net Assets Held Without Donor Restrictions 7,144 9,860

Beginning Balance, Net Assets Held Without Donor Restrictions 31,774 21,914 Ending Balance, Net Assets Held Without Donor Restrictions 38,918$ 31,774$

CHANGE IN NET ASSETS HELD WITH DONOR RESTRICTIONSREVENUES

Grants, Bequests and Gifts 78,889$ 88,526$ Investment Income, Net 23,757 39,132 Change in Value of Life Income Agreements 541 2,485 Other Revenues 3,191 3,568 Net Assets Released From Restrictions and Other Transfers (88,430) (78,158)

Increase In Net Assets Held With Donor Restrictions 17,948 55,553

Beginning Balance, Net Assets Held With Donor Restrictions 727,174 671,621 Ending Balance, Net Assets Held With Donor Restrictions 745,122$ 727,174$

Beginning Balance 758,948$ 693,535$ Increase In Total Net Assets 25,092 65,413 Ending Balance 784,040$ 758,948$


(in thousands)

Component Units



Statements of Cash Flows


CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees 346,455$ 332,545$

Grants and Contracts 240,491 237,522 Educational Department Sales and Services 56,204 54,720 Auxiliary Enterprise Operations 179,436 170,695 Payments to Employees for Compensation and Benefits (761,141) (737,291) Payments to Suppliers (325,008) (288,146) Student Financial Aid (37,359) (38,425) Other Operating Receipts 13,581 13,094

Net Cash Used by Operating Activities (287,341) (255,286)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESGovernment Appropriations 237,349 225,847 Financial Aid Grants 44,418 42,731 Private Gifts Received for Endowment Purposes - 824 Other Gifts and Private Contracts 57,205 56,475 Net Agency Fund Receipts (Payments) 49 (332)

Net Cash Provided by Noncapital Financing Activities 339,021 325,545

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESDebt Service Appropriations 1,073 1,073 Capital Grants and Gifts 68,003 43,752 Proceeds from Capital Debt 140,000 124,405 Sales of Capital Assets 1,123 434 Purchases of Capital Assets (122,810) (113,867) Interest Payments on Capital Debt (24,380) (21,867) Principal Payments on Capital Debt (41,197) (21,760)

Net Cash Provided by Capital and Related Financing Activities 21,812 12,170

CASH FLOWS FROM INVESTING ACTIVITIESNet Sales (Purchases) of Investments 41,224 (62,613) Interest Receipts on Investments and Cash Balances 14,747 12,271

Net Cash Provided (Used) by Investing Activities 55,971 (50,342) NET INCREASE IN CASH AND CASH EQUIVALENTS 129,463 32,087

CASH AND CASH EQUIVALENTSBeginning Balance 121,637 89,550 Ending Balance 251,100$ 121,637$


University

(In thousands)



Statements of Cash Flows - Continued


RECONCILIATION OF OPERATING LOSS TO NET CASH USED BYOPERATING ACTIVITIESOperating Loss (375,483)$ (361,994)$ Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities:

Depreciation Expense 59,294 56,493 Changes in Assets and Liabilities:

Accounts Receivable (4,400) (3,462) Notes Receivable 3,909 (2,212) Inventories (48) 12 Prepaid Expenses (2,523) (2,739) Net Pension Liability and Related Deferrals 28,259 36,426 OPEB Asset/Liability and Related Deferrals (1,455) (1,089) Asset Retirement Obligation Related Deferral 464 464Accounts Payable and Accrued Liabilities 8,840 17,782 Long-Term Liabilities (2,917) (608) Unearned Revenues (1,281) 5,641

NET CASH USED BY OPERATING ACTIVITIES (287,341)$ (255,286)$

NONCASH INVESTING, NONCAPITAL FINANCING, AND CAPITAL ANDRELATED FINANCING TRANSACTIONS

Capital Assets Acquired by Gifts-in-Kind 7,788$ 1,251$ Increase (Decrease) in Fair Value of Investments Recognized as a Component of Investment Activity 6,539 21 Capital Assets Acquired by Accounts Payable 4,904 2,584


University

(In thousands)



Notes to the Financial StatementsFor the Years Ended June 30, 2019 and 2018

1. ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

A. Reporting EntityOregon State University (OSU, university) is a comprehen-sive public university governed by the Oregon State Univer-sity Board of Trustees (board), a citizen board appointed by the Governor with confi rmation by the state senate. OSU serves as the state of Oregon’s land, sea, space, and sun grant university.

The OSU fi nancial reporting entity is comprised of OSU and two related foundations. OSU includes the main campus in Corvallis and a branch campus in Bend and receives separate appropriations for statewide activities including Agricultural Experiment Stations, Cooperative Extension Service, and Forestry Research Laboratories. Because the Governor of the State of Oregon (state) appoints the OSU Board of Trustees, and because OSU receives some fi nancial support from the state, OSU is a discretely presented component unit of the state and is included in its comprehensive annual fi nancial report (CAFR).

Similarly, the university’s two related foundations are discretely presented as component units on OSU’s basic fi nancial statements under the guidelines established by Governmental Accounting Standards Board (GASB) Statement No. 39, Determining Whether Certain Organizations are Component Units. Discretely presented means that the statements are included separately in the fi nancial report. The Oregon State University Foundation (OSUF) was incorporated in 1947 to pursue and administer gifts and bequests in support of the university. The OSUF is responsible for all fundraising of the university and for the management of the majority of the university’s endowments. The Agricultural Research Foundation (ARF) was incorporated in 1934 to encourage and facilitate research in all branches of agriculture and related fi elds for the benefi t of Oregon’s agricultural industries. The ARF is the custodian of privately and publicly donated research funds that support projects conducted by OSU scientists on campus, across the state, and by affi liated entities. Both foundations are nonprofi t entities under Section 501(c)(3) of the Internal Revenue Code. The majority of resources that each foundation holds and invests are restricted to the activities of the university in accordance with donor intent, and can only be used by, or for the benefi t of, OSU. These resources are signifi cant to the operations of OSU, and the university routinely accesses them through various inter-company processes. See Note 21 University Foundations for additional information regarding the related foundations reported as Component Units.

B. Financial Statement PresentationThe OSU fi nancial accounting records are maintained in ac-cordance with U.S. generally accepted accounting principles (GAAP) as prescribed in applicable pronouncements of the

Governmental Accounting Standards Board (GASB). The fi nancial statement presentation required by GASB State-ment No. 35, Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities—an amendment of GASB Statement No. 34, modifi ed by GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, provides a comprehensive, entity-wide perspec-tive of OSU assets, deferred outfl ows of resources, liabili-ties, deferred infl ows of resources, net position, revenues, expenses, changes in net position, and cash fl ows.

In preparing the fi nancial statements, interfund transfers be-tween university funds, and internal revenues and expenses associated with self-supporting auxiliary and service center operations, have been eliminated.

Financial statements of the OSU foundations for the fi s-cal years ended June 30, 2019 and 2018 are discretely presented as discussed above. The foundations’ fi nancial statements are prepared in accordance with the pronounce-ments of the Financial Accounting Standards Board (FASB). As such, certain revenue recognition criteria and presenta-tion features are diff erent from GASB revenue criteria and presentation. Accordingly, those fi nancial statements have been consolidated and reported on separate pages follow-ing their respective fi nancial statement counterparts of the university. No modifi cations have been made to the foun-dations’ fi nancial information included in the university’s fi nancial report.

C. Basis of AccountingFor fi nancial reporting purposes, OSU is considered a special-purpose government engaged only in business-type activities. Accordingly, the OSU fi nancial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recorded when incurred.

NEWLY IMPLEMENTED ACCOUNTING STANDARDSOSU implemented GASB Statement No. 83, Certain Asset Retirement Obligations. GASB Statement No. 83 addresses accounting and fi nancial reporting for certain asset retire-ment obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. As a result of the implementation, OSU restated 2018 beginning net position on the Statement of Revenues, Expenses and Changes in Net Position by ($2,265,697) and recorded expense related to the amortization of the associ-ated deferred outfl ow of $463,750 for the years ended June 30, 2019 and 2018. The cumulative impact of adoption on ending net position is ($3,193,197) as of June 30, 2019. See Note 1 Section M, and Note 10 Asset Retirement Obliga-tions for additional information.




UPCOMING ACCOUNTING STANDARDS In January 2017, GASB issued Statement No. 84, Fiduciary Activities. GASB Statement No. 84 improves guidance regarding the identifi cation of fi duciary activities for accounting and fi nancial reporting purposes and how those activities should be reported. The Statement establishes criteria for identifying fi duciary activities and guidance on how to report activities meeting the criteria in a fi duciary fund in the basic fi nancial statements. The Statement is eff ective for the fi scal year ending June 30, 2020, and will apply to custodial funds held primarily for student groups by the university.

In June 2017, GASB issued Statement No. 87, Leases. GASB Statement No. 87 improves the accounting and fi nancial reporting for leases and is eff ective for the fi scal year ended June 30, 2021. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use leased assets, and a lessor is required to recognize a lease receivable and a deferred infl ow of resources, thereby enhancing the relevance and consistency of information about leasing activities. This Statement will substantially impact the university’s lease accounting and reporting.

Between July 2018 and June 2019, GASB issued the follow-ing statements which do not currently, but could under cer-tain circumstances in the future, apply to OSU: Statement No. 90, Majority Equity Interests - an amendment of GASB Statements No. 16 and No. 61; Statement No. 91, Conduit Debt Obligations.

D. Cash and Cash EquivalentsCash and cash equivalents include highly liquid investments with original maturities of three months or less. The major-ity of the university’s cash and cash equivalents are invested in the Oregon Short-Term Fund (OSTF), which is managed by the Oregon State Treasury, and provides daily liquid-ity. Cash and cash equivalents classifi ed as current assets consist of: cash on hand, cash for current operations, cash held for the payment of the current portion of debt service, and cash held as a custodial agent for student groups. Cash and cash equivalents classifi ed as non-current assets consist of student building fee cash held for future debt service and cash for capital construction projects. See Note 2 Cash and Investments, Section A Cash and Cash Equivalents for dis-closure of restricted portions of cash and cash equivalents.

E. InvestmentsInvestments are reported at fair value as determined by market prices. Unrealized and realized gains or losses on investments are reported as investment activity in the Statement of Revenues, Expenses, and Changes in Net Position. See Note 13 Investment Activity for additional information. All investments are classifi ed as noncurrent assets in the Statement of Net Position.

F. ReceivablesAccounts receivable consists primarily of amounts due for tuition and fee charges to students, grants and contracts, and auxiliary enterprise services provided to students, faculty and staff . Accounts receivable for tuition and fee charges are recorded net of estimated uncollectible amounts in accordance with generally accepted accounting principles. Grants and contracts receivable include amounts due from federal, state, and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the university’s grants and contracts. Capital construction receivables include amounts due from the state in connection with reimbursement of allowable expenditures made pursuant to the grant agreements between the university and the state for facilities projects funded by the state.

Notes receivable consist primarily of student loans receivable due from the federal Perkins Loan Program and from other loans administered by the university. Construction loans receivable are reimbursements receivable from the state in connection with allowable expenditures made pursuant to contracts between the university and the state for various facility projects initially funded by the university. Construction reimbursements can be current or long-term depending on the estimated timing of completion of associated construction projects. The university does not currently hold any notes receivable from the state related to construction reimbursements.

G. InventoriesInventories are recorded at cost, with cost being generally determined on a fi rst-in, fi rst-out or average basis. Invento-ries consist primarily of supplies in storerooms and physical plant stores.

H. Capital AssetsCapital assets are recorded at cost on the date acquired or at acquisition value on the date donated. OSU capitalizes equipment with unit costs of $5,000 or more and an estimated useful life greater than one year. OSU capitalizes real property expenditures that increase the functionality and/or extend the useful life of the real property if total expenditures exceed the capitalization thresholds of $50,000 to $100,000, depending on the type of real property. Intangible assets valued in excess of $100,000 are capitalized. Expenditures below the capitalization threshold and repairs and maintenance are charged to operating expense in the year in which the expense is incurred.

Prior to the implementation of GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, OSU capitalized interest expense as part of the historical cost of acquiring capital assets. With the implementation of GASB Statement No. 89, eff ective for the fi scal year ended June 30, 2018, interest costs incurred before the end of a construction period are no longer




capitalized but are instead recorded as a cost of the period in which it is incurred.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets. This is generally 50 years for buildings; 25 years for major renovations/additions to buildings; 10 to 20 years for infrastructure and land improvements; 5 to 11 years for non-expendable assets; and the useful life of the asset or term of the lease, whichever is less, for leasehold improvements . Amortization terms for intangible assets vary depending on the factors relating to the specifi c asset. Depreciation is not applied to land, museum collections, works of art, historical treasures, or library special collections.

I. Unearned RevenuesUnearned revenues include amounts received for tuition and fees, grants and contracts, lease income and auxiliary enterprise activities in which cash has been received, but revenues will be earned in the subsequent fi scal year(s).

J. Compensated AbsencesOSU accrues a liability for vacation leave and other compen-sated absences that were earned but not used during the current or prior fi scal year for which employees can receive compensation in a future period. An estimate is made to allocate this liability between its current and noncurrent components.

Sick leave is recorded as an expense when paid. There is no payout provision for unused sick leave and no liability exists.

K. Net Pension LiabilityThe net pension liability, deferred outfl ows of resources and deferred infl ows of resources related to pensions, and pension expense, are actuarially determined at the system-wide Retirement Plan level and are allocated to employers based on their proportionate share. The university’s proportionate share is allocated to OSU by the Oregon Department of Administrative Services. See note 16 Employee Retirement Plans for a detailed description of the liability and the proportionate share methodology.

L. Net OPEB (Asset)/LiabilityThe university reports their proportionate share of the net PERS RHIA OPEB asset, net PERS RHIPA OPEB liability and the total PEBB OPEB liability along with the associated deferred outfl ows of resources and deferred infl ows of resources. See Note 17 Other Post-Employment Benefi ts (OPEB) for a detailed description of each plan and the proportionate share methodology for each.

M. Asset Retirement ObligationsAn Asset Retirement Obligation (ARO) is a legally enforce-able liability associated with the retirement of a tangible capital asset. The retirement of a tangible capital asset encompasses its sale, abandonment, recycling, or disposal in some other manner; however, it does not encompass the

temporary idling of a tangible capital asset. OSU has legal obligations to perform future asset retirement activities re-lated to two tangible capital assets and therefore recognizes a liability and corresponding deferred outfl ow of resources. The deferred outfl ows of resources will be amortized and expensed over the remaining life of the assets.

N. Deferred Outfl ows and Infl ows of Resources

Deferred outfl ows of resources represent the consumption of net position in one period that is applicable to future periods, and have a positive eff ect on net position that is similar to assets, but are not considered assets. Deferred infl ows of resources represent the acquisition of net posi-tion that is applicable to future periods, and have a negative eff ect on net position that is similar to liabilities, but are not considered liabilities. Deferred outfl ows and infl ows are re-lated to defi ned benefi t pension plans, defi ned benefi t OPEB plans, asset retirement obligations, and net fair value gains or losses on forward foreign currency contracts. See Note 2 Cash and Investments, Section A Foreign Currency Risk-De-posits, Note 6 Deferred Outfl ows and Infl ows of Resources, Note 10 Asset Retirement Obligations, Note 16 Employee Retirement Plans, and Note 17 Other Post-employment Benefi ts (OPEB).

O. Net PositionOSU’s net position is classifi ed as follows:

NET INVESTMENT IN CAPITAL ASSETS Net investment in capital assets represents the total invest-ment in capital assets, net of accumulated depreciation and amortization, plus unspent bond proceeds less outstanding debt obligations related to those capital assets.

RESTRICTED – NONEXPENDABLE ENDOWMENTSRestricted-Nonexpendable Endowments consists of endow-ment funds in which donors have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income. The income may either be expended or, depending on the terms of the gift instrument, added to principal.

RESTRICTED – EXPENDABLERestricted-Expendable includes resources which OSU is le-gally or contractually obligated to spend in accordance with restrictions stipulated by external parties.

UNRESTRICTEDUnrestricted net position represents resources that may be used at the discretion of the board.

P. Restricted/Unrestricted ResourcesThe university has no formal policy addressing which resources to use when both restricted and unrestricted net position are available for the same purpose. University personnel decide which resources to use at the time




expenses are incurred. Factors used to determine which resources to use include relative priorities of the university in accordance with the university’s strategic initiatives and externally imposed matching requirements of certain restricted funds. Major capital purchases are often times split-funded from multiple restricted and unrestricted funding sources.

Q. EndowmentsThe university manages timber and forestry land endow-ments, while all other endowments are managed by the OSU Foundation. The university endowment assets managed by the OSU Foundation are invested with the objectives of long-term capital appreciation and stable but growing in-come. The university board policy is to distribute 4.5 percent of the preceding 12-quarter moving average of the endow-ment market value for spending purposes.

Net appreciation of endowments is included in restricted expendable gifts, grants, and contracts on the Statement of Net Position.

Non-expendable endowments on the Statement of Net Position at June 30, 2019, represent the original corpus of true endowment funds of $2,384,154 and the full non-expendable fair value of the real estate endowments of $3,012,089. Non-expendable endowments on the Statement of Net Position at June 30, 2018, represent the original corpus of true endowment funds of $2,384,154 and the full non-expendable fair value of the real estate endowments of $3,575,364.

The university’s endowments are identifi ed and invested as follows (in thousands):

R. Income TaxesOSU is treated as a governmental entity for tax purposes. As such, OSU is generally not subject to federal and state income taxes. However, OSU remains subject to income taxes on any income that is derived from a trade or business regularly carried on and not in furtherance of the purpose for which OSU was granted exemption from income taxes. No income tax is recorded because there are no income taxes due on unrelated business income during fi scal year 2019 and 2018.

S. Revenues and ExpensesOSU has classifi ed its revenues and expenses as either oper-ating or nonoperating according to the following criteria:

Operating revenues and expenses generally have the charac-teristics of exchange transactions. These transactions can be defi ned as an exchange in which two or more entities both receive and sacrifi ce value, such as purchases and sales of goods or services. Examples of operating revenues include student tuition and fees, sales and services of auxiliary enterprises, most federal, state and local grants and con-tracts, and other operating revenues. Examples of operating expenses include employee compensation and benefi ts, scholarships and fellowships, utilities, supplies and other services, professional fees, and depreciation.

Nonoperating revenues and expenses generally have the characteristics of nonexchange transactions. In a nonex-change transaction, OSU receives value without directly giving equal value in exchange. Examples of nonoperating revenues include government appropriations, nonexchange grants, gifts, and contributions. Nonoperating expenses are defi ned in GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmen-tal Entities That Use Proprietary Fund Accounting, and GASB Statement No. 34, Basic Financial Statements - and Manage-ment’s Discussion and Analysis - for State and Local Govern-ments. Examples of nonoperating expenses include interest on capital debt and bond expenses.

T. State SupportOSU receives support from the state in the form of General Fund and Lottery appropriations, and debt service appro-priations for some Oregon Department of Energy loans. See Note 14 Government Appropriations for details on appro-priations.

In addition to appropriations, the state provides funding for plant facilities on the university’s campuses. Capital projects for new facilities and capital improvements and repair are funded by gifts, state-paid debt, and university-paid debt and resources. The state legislature considers projects from all seven public universities for allocation of Oregon’s bond-ing capacity. Funds for capital projects funded by state-paid debt are provided through grant agreements between OSU and the state. Revenue is recorded as Capital Grants in the Statement of Revenues, Expenses and Changes in Net Posi-

June 30, 2019

June 30, 2018

True EndowmentsCorpus 2,384$ 2,384$ Market Valuation 2,157 2,131 Real Estate 3,012 3,575

Total 7,553 8,090

Quasi-EndowmentsCorpus 18,784 18,569 Market Valuation 25,707 25,430

Real Estate 3,416 2,978 Total 47,907 46,977

Total Fair Value of Endowments 55,460$ 55,067$

Invested Endowments:Timber and Forestry Land Held by OSU 6,429$ 6,553$ Invested by OSU Foundation 48,272 47,976 Invested in the Public University Fund (PUF) 177 195

Total Invested Endowments 54,878 54,724

Endowment Cash in PUF 152 128 Long-Term Receivable from Casey Family Trust 430 215

Total Fair Value of Endowments 55,460$ 55,067$




tion when appropriate expenditures are reimbursable per the grant agreements. Funds for capital projects funded by university-paid debt can also be funded through Oregon’s bonding capacity. At the time that the bonds are sold, the state instructs OSU to record a liability to the state for the debt, and a receivable for construction reimbursements. The receivable is reduced as expenditures on the capital project are completed and reimbursed by the state.

Facilities funded by gifts, state-paid debt and university-paid debt are refl ected as completed assets or construction in progress in the accompanying Statement of Net Position. University-paid debt relating to bonds issued by the state are primary obligations of the state. OSU is contractually committed to pay the state to fund the retirement of debt obligations issued on its behalf. These contracts are included as current and long-term liabilities in the Statement of Net Position.

U. AllowancesStudent tuition and fees and campus housing revenues included in auxiliary enterprise revenues are reported net of scholarship allowances. A scholarship allowance is the diff erence between the university’s stated rates and charges and the amounts actually paid by students and/or third parties making payments on behalf of the students. Under this approach, scholarships awarded by the university are considered as reductions in tuition and fee revenues rather than as expenses. Additionally, certain governmental grants, such as Pell grants, and payments from other federal, state or nongovernmental programs, are required to be recorded as either operating or nonoperating revenues in the univer-sity’s fi nancial statements. To the extent that revenues from such programs are applied to tuition, fees, and other student charges, the university has reported a corresponding schol-arship allowance.

OSU has three types of allowances that are netted against gross tuition and fees and housing revenues. Tuition and housing waivers, provided directly by OSU, amounted to $42,746,331 and $39,918,755 for the fi scal years ended 2019 and 2018, respectively. Revenues from fi nancial aid programs (e.g., Pell Grants, Supplemental Educational Op-portunity Grants, and Oregon Opportunity Grants) used for paying student tuition and fees and campus housing was estimated to be $41,975,377 and $38,458,167 for the fi scal years ended 2019 and 2018, respectively. Bad debt expense related to student accounts is also reported as an allow-ance against operating revenues and was estimated to be $2,998,288 and $2,212,736 for the fi scal years ended 2019 and 2018, respectively.

V. Federal Student Loan ProgramsOSU receives proceeds from the Federal Direct Student Loan Program (FDSLP). Since OSU transmits these grantor supplied moneys without having administrative or direct fi nancial involvement in the program, the activity of the FDSLP is not reported in operations. OSU disbursed fed-

eral student loans in the amount of $137,888,710 and $140,881,372 for the fi scal years ended 2019 and 2018, respectively.

W. Deposit LiabilitiesDeposit Liabilities primarily consist of fund balances held by OSU on behalf of student groups and organizations that ac-count for activities in the OSU accounting system and whose cash is part of the cash held on deposit with the Oregon State Treasury.

X. Perkins Loan Program TerminationOSU administers Title IV Perkins Loans for the benefi t of its students. Funds for the Perkins program were initially received through Federal Capital Contributions (FCC) from the U.S. Department of Education (ED) and were supple-mented with Institutional Capital Contributions (ICC). Over the years, the proportion of federal to institutional matching funds varied, from a 90/10 split to a 75/25 split. Academic year 2017-18 was the last year in which new Perkins loans were allowed to be disbursed as the U.S. Congress did not renew the program. The ED has given institutions the op-tion of assigning existing Perkins loans back to the federal government or continuing to collect on them while return-ing FCC as loans are repaid. OSU has elected to continue to collect on Perkins loans and return the FCC as it is collected. Historically, the balance of the Perkins loans was reported in Notes Receivable and in Net Position Expendable for Student Loans. Due to the impending repayment of the FCC portion of the Perkins program to the ED as loans are collected, an accrued liability has been established for the amount of the remaining FCC due to the ED.

Y. Related Party TransactionsDuring fi scal year 2018, OSU entered into a related party transaction with former head baseball coach Pat Casey and the Pat Casey Family Trust (PCFT). The parties have agreed to a split-dollar arrangement whereby Coach has agreed to reduce his salary by $215,000 annually and the university is then loaning $215,000 annually for fi scal years 2018 through 2022 to the PCFT at an annual interest rate of 2.66 percent. The PCFT is using the loan funds to purchase a life insurance policy on Pat Casey’s wife. The term of the loan from the university to PCFT is 23 years, or upon the death of Mrs. Casey, whichever comes fi rst. When the life insurance policy terminates, OSU will be reimbursed by the PCFT for the full principal amount of the loan plus accrued interest. The loan from OSU to PCFT is reported in non-current notes receivable.

Z. Use of EstimatesThe preparation of fi nancial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could aff ect the reported amounts of as-sets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the fi nancial statements. Actual results could diff er from those estimates.




AA. Restatement of Prior PeriodsThe implementation of GASB Statement No. 83, Certain Asset Retirement Obligations, required the restatement of all prior periods presented in the fi nancial statements. For fi scal year ended June 30, 2018, OSU recorded a deferred outfl ow of $16,385,833 and an ARO liability of $19,115,280 result-ing in a $2,265,697 reduction in beginning fi scal year 2018 net position. See Note 10 Asset Retirement Obligations for additional information.

The cumulative eff ect of applying GASB Statement No. 83 is reported as a restatement of beginning net position as of

June 30, 2018 as follows (in thousands):

2. CASH AND INVESTMENTSAt June 30, 2019 and 2018, the majority of the cash and investments of OSU were held in custody with the Oregon State Treasury (OST). The OST manages these invested assets through commingled investment pools. The operat-ing funds for OSU are commingled with operating cash and investments from fi ve other Oregon public universities and referred to collectively as the Public University Fund (PUF). The investments held in the PUF are managed by the OST and administered by the statutorily defi ned designated uni-versity. OSU is currently serving as the designated university for the PUF pool. Each underlying investment pool has an investment policy and set of objectives identifying risk and return parameters for the respective investment pool. The OST invests these deposits in high grade, dollar-denominat-ed, short and intermediate-term fi xed income securities. The Oregon Investment Council (OIC) provides oversight and counsel on the investment policies, activities, and perfor-mance for each investment pool held in the PUF. Revenue bond proceeds are invested separately from operating funds, and are held in diversifi ed, high quality and liquid fi xed income securities.

Total cash and investments for the university includes both restricted and unrestricted amounts and are summarized as follows: (in thousands)

In general, deposits and investment securities as described below have exposure to various risks such as credit, concen-tration of credit, custodial credit, interest rate, and foreign currency. Although the objective of each investment pool is to preserve capital within defi ned risk parameters, it is likely that the value of the investment securities will fl uctu-ate during short periods of time, and it is possible that such changes could materially aff ect the amounts reported in the fi nancial statements.

For full disclosure regarding cash and investments managed by the OST, a copy of the OST audited annual fi nancial report may be obtained by writing to the Oregon State Treasury, 350 Winter St. NE, Suite 100, Salem, OR 97301-3896 or by linking to https://www.oregon.gov/treasury/news-data/pages/treasury-news-reports.aspx#annualrep

A. Cash and Cash EquivalentsDEPOSITS WITH OREGON STATE TREASURYOSU maintains the majority of its current cash balances on deposit with the OST. These deposits are held on a pooled basis in the Oregon Short-Term Fund (OSTF). The OSTF is a short-term cash and investment pool available for use by all state agencies or by agreement for related agencies, such as OSU. The OST invests these deposits in high-grade short-term investment securities. While the university is not required by statute to collateralize deposits, it does have a contractual obligation with the OST to collateralize deposits

June 30, 2018

Beginning Net Position, as Previously Reported 743,608$ Retroactive GASB 83 Implementation (2,266)

Beginning Net Position, Restated 741,342$

June 30, 2019

June 30, 2018

Unrestricted 90,745$ 123,112$ Bond Proceeds Reserved for Capital 179,191 68,885 Restricted For:

Endowments 55,030 54,852 Gifts, Grants and Contracts 26,180 24,455 Capital 60,245 59,179 Student Aid 10,884 6,473 Debt Service 7,256 6,768

Payroll Withholdings 24,353 23,955 Student Groups and Campus Organizations 563 972 Perkins Title IV Cash 4,251 2,685 Petty Cash 179 175 Supplemental Retirement Plan Investment 301 152 Unrealized Gain/(Loss) on Investments 3,948 (2,778)

Total Cash and Investments 463,126$ 368,885$




within 24 hours of receipt. At fi scal years ended June 30, 2019 and 2018, OSU cash and cash equivalents on deposit at OST were $246,669,897 and $118,803,333, respectively. Cash and cash equivalents on deposit at fi scal year ended June 30, 2019 include $120,096,149 in unspent taxable rev-enue bonds held in a separate OST account in the OSTF.

OTHER DEPOSITSFor the year ended June 30, 2019 and 2018, OSU had cash at U.S. Bank held for Title IV Perkins Loans of $4,250,915 and $2,685,019, respectively. Additionally, for the years ended June 30, 2019 and 2018, OSU had vault and petty cash balances of $179,086 and $174,628, respectively.

CUSTODIAL CREDIT RISK—DEPOSITSCustodial credit risk is the risk that, in the event of a fi nan-cial institution failure, cash deposits will not be returned to a depositor. The university and state do not have formal policies regarding custodial credit risk for deposits. How-ever, banking regulations and Oregon Revised Statute (ORS) Chapter 295 establish the insurance and collateral require-ments for deposits in the OSTF. OSU cash balances held on deposit at the OST are invested continuously, therefore custodial credit risk exposure to the OST is low. Additionally, cash balances on deposit with U.S. Bank are collateralized, therefore invested continuously, resulting in low credit risk.

FOREIGN CURRENCY RISK—DEPOSITSDeposits in foreign currency run the risk of changing value due to fl uctuations in foreign exchange rates. Per PUF policy, all deposits are in U.S. currency and therefore not exposed to foreign currency risk.

To facilitate study-abroad programs, there are some cash balances held in the local currency of other countries to pay local expenses. The aggregate foreign denominated account balances converted into U.S. dollars equaled $143,794 and $102,276 at June 30, 2019 and 2018, respectively. Amounts deposited in foreign bank accounts are reported as accounts receivable on the fi nancial statements.

Historically, OSU periodically entered into forward foreign currency contracts. At June 30, 2018, these contracts totaled $539,345. Contracts at June 30, 2018, had a net fair value loss of $25,991. As of June 30, 2019, OSU no longer uses forward contracts and has changed to using a spot rate for currency conversion.

The net fair value loss is reported in deferred outfl ows of resources on the Statement of Net Position.

B. InvestmentsOSU’s operating funds are invested in the PUF. University investments in the PUF are invested in the Core Bond Fund

(CBF) managed by the OST. The CBF invests primarily in intermediate-term fi xed income securities and is managed with an investment objective to maximize total return (i.e., principal and income) over an intermediate time horizon within stipulated risk parameters. The CBF is actively managed to maintain an average duration of four to fi ve years, through a diversifi ed portfolio of quality, investment grade fi xed income securities as defi ned in the portfolio guidelines. The majority of the university’s endowment assets are managed by the OSU Foundation. These endowment assets are invested in the OSU Foundation’s pooled endowment fund (fund) and directed by external investment managers. The fund is expected to operate in perpetuity and the investments are invested with a long-term horizon while maintaining a prudent level of risk. Additionally, the university manages timber and forestry land endowments and a land grant endowment invested in the PUF.

All investments are managed as a prudent investor would do, exercising reasonable care, skill and caution.

Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur in the near term and such changes could materially aff ect the amounts reported in the Statement of Net Position.

Signifi cant events in domestic and international investment markets, or aggressive action by the Federal Open Market Committee to infl uence both short and long-term interest rates, contribute to price volatility. Consequently, the fair value of OSU’s operating and endowment investments is exposed to price volatility which could result in a substan-tial change in the fair value of certain investments from the amounts reported as of June 30, 2019 and 2018.

Investments are all classifi ed as noncurrent and include both restricted and unrestricted funds. Earnings on investments from restricted fund sources are spent in accordance with the restrictions of the funding source.

OSU’s investments are classifi ed and invested as follows (in thousands):

Principal Effective Maturity Contract FairCurrency Amount Amount Date Date Rate Value Adj.EUR 380$ 554$ 7/2/2018 11/16/2018 1.2168$ (23)$ JPY 8,291 84 7/2/2018 11/19/2018 0.0093 (3)

Notional

June 30, 2018(in thousands)

June 30, 2019

June 30, 2018

Operating FundsPUF Core Bond Fund 156,847$ 192,372$

Total Operating Funds 156,847 192,372

Endowment FundsInvested by OSU Foundation 48,272 47,976 Timber and Forestry Land 6,429 6,553 PUF Core Bond Fund 177 195

Total Endowment Funds 54,878 54,724

Separately Held Investments 301 152

Total Investments 212,026$ 247,248$




Investments of the OSU discretely presented component units are summarized at fair value as follows (in thousands):

CREDIT RISK Credit risk is the risk that the issuer of an investment fails to fulfi ll its obligations. OSU has separate investment poli-cies for its operating and endowment assets. As of June 30, 2019, approximately 93.3 percent of the investments in the PUF CBF are subject to credit risk reporting. Fixed income securities in the PUF CBF rated by the credit agencies as lower medium to high quality, indicating the issuer has a strong capacity to pay principal and interest when due, to-taled $209,190,427. Fixed income securities which have not been evaluated by the rating agencies totaled $106,501,809. The PUF CBF totaled $338,347,950, of which OSU owned $157,024,585, or 46.4 percent. Of the OSU endowments managed by the OSU Foundation and allocated to fi xed in-come, all investments were held in mutual funds which have not been evaluated by the rating agencies.

As of June 30, 2018, approximately 92.6 percent of the investments in the PUF CBF are subject to credit risk report-ing. Fixed income securities in the PUF CBF rated by the credit agencies as lower medium to high quality, indicating the issuer has a strong capacity to pay principal and inter-est when due, totaled $269,463,400. Fixed income securi-ties which have not been evaluated by the rating agencies totaled $78,121,855. The PUF CBF totaled $375,495,937, of which OSU owned $192,566,260, or 51.3 percent. Of the OSU endowments managed by the OSU Foundation and al-located to fi xed income, all investments were held in mutual funds which have not been evaluated by the rating agencies.

CUSTODIAL CREDIT RISK—INVESTMENTSCustodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, the university will not be able to recover the value of an invest-ment or collateral securities in the possession of an outside party. The OIC has no formal policy regarding the holding of securities by a custodian or counterparty. For the years ended June 30, 2019 and 2018, the university’s investments

were exposed to custodial credit risk indirectly through the OST.

CONCENTRATION OF CREDIT RISKConcentration of credit risk refers to potential losses if total investments are concentrated with one or few issuers. With the exception of U.S. Government and Agency issues, the PUF policy for reducing credit risk for fi xed income securi-ties is that no more than fi ve percent of the bond portfolio par value will be invested in securities of a single issuer, and no more than three percent will be invested in any individual issue. Per policy, the PUF held no securities from a single issuer that exceeded fi ve percent of the bond portfolio.

FOREIGN CURRENCY RISK—INVESTMENTSForeign currency risk is the risk that investments may lose value due to fl uctuations in foreign exchange rates. Per PUF investment policy, all investments are to be in U.S. dollar denominated securities, therefore no amounts of the PUF investments had reportable foreign currency risk at June 30, 2019 or 2018.

Of the OSU Endowments invested by the OSU Foundation at June 30, 2019, $13,545,068, or 28.1 percent, were held subject to foreign currency risk. At June 30, 2018, $13,817,018, or 28.8 percent were held subject to foreign currency risk.

INTEREST RATE RISKInvestments in fi xed income securities are subject to the risk that changes in interest rates will adversely aff ect the fair value of the investments. As of June 30, 2019, securi-ties held in the PUF CBF subject to interest rate risk totaled $315,692,236 and had an average duration of 3.39 years. Se-curities of the OSU Endowment investments held subject to interest rate risk totaling $4,165,857 had an average dura-tion of 5.22 years. As of June 30, 2018, securities held in the PUF CBF subject to interest rate risk totaled $347,585,255 and had an average duration of 3.71 years. Securities of the OSU Endowment investments held subject to interest rate risk totaling $5,613,164 had an average duration of 3.32 years. Duration measures the change in the value of a fi xed income security that will result from a one percent change in interest rates.

FAIR VALUE MEASUREMENTInvestments are reported at estimated fair value as deter-mined by the OST, based on a fair value hierarchy which pri-oritizes the input techniques used to measure fair value. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements:

Level 1 – Inputs that refl ect unadjusted quoted prices in ac-tive markets for identical assets or liabilities;

Level 2 – Inputs other than quoted market prices that are observable for the asset, either directly or indirectly, includ-ing inputs in markets that are not considered to be active; and

June 30, 2019

June 30, 2018

Investment Type:Global Equities 328,833$ 314,746$ Global Fixed Income 107,812 105,677 Private Equity Partnerships 94,508 119,303 Absolute Returns 71,924 67,975 Real Assets 60,061 29,756 Corporate Stocks and Bonds 14,809 12,685 Real Estate Held for Investments 13,554 24,264 Government Securities and Municipal Bonds 12,242 12,326 Investment Receivables 376 1,028 Certificates of Deposit - 194 Other 23,957 4,988

Total Investments 728,076$ 692,942$




Level 3 – Inputs that are unobservable. These are only used if relevant Level 1 and Level 2 inputs are not available.

Inputs are used in applying valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. In addition to the underlying reported net asset values (NAV), which generally serve as the primary valuation input, other inputs may include liquidity factors and broad credit data. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is signifi cant to the fair value measurement.

The fair value of OSU’s investments in the PUF CBF are based on the investments’ net asset value (NAV) per share provided by the Treasury. Fair value measurements for the university’s investments in the PUF CBF at June 30 2019 and 2018 totaled $157,024,585 and $192,566,260, respectively.

As of June 30, 2019 and 2018, respectively, OSU’s invest-ment in timber and forestry land was valued at $6,428,549 and $6,553,054. This investment is a natural resource invest-ment and is therefore required to be reported at fair value. In order to obtain the value of the timber and the land, a professional timber cruise is performed every fi ve years, and interim valuations are conducted by professionals within the OSU College of Forestry every year-end. The periodic timber cruise and annual valuation is a level 3 input.

COMPONENT UNIT INVESTMENTS BY LEVELThe following tables present the component unit invest-ments by level within valuation hierarchy as of June 30, 2019 and 2018:

C. Securities LendingIn accordance with state investment policies, the state participates in securities lending transactions. The Treasury has, through a Securities Lending Agreement, authorized State Street Bank and Trust Company (State Street) to lend the state’s securities pursuant to a form of loan agreement. Both the state and borrowers maintain the right to terminate all securities lending transactions on demand. OSU’s cash on deposit with the OST is subject to securities lending. There were no signifi cant violations of the provisions of securities lending agreements during the years ended June 30, 2019 and 2018.

During the year, State Street had the authority to lend short-term fi xed income and equity securities and receive as collateral U.S. dollar and foreign currency cash, U.S. govern-ment and agency securities, and foreign sovereign debt of Organization of Economic Cooperation and Development countries. Borrowers were required to deliver collateral for each loan equal to not less than 102 percent of the market value of the loaned U.S. security. The custodian did not have the ability to pledge or sell collateral securities absent a borrower default, and during the year the state did impose restrictions on the amount of the loans that the custodian made on its behalf. The OST is fully indemnifi ed by the cus-todian against losses due to borrower default. There were no losses during the year from the failure of borrowers to return loaned securities.

State Street, as lending agent, has created a fund to re-invest cash collateral received on behalf of the OSTF and Oregon state agencies, including OSU. As permitted under the fund’s Declaration of Trust (Declaration), participant purchases and redemptions are transacted at $1 per unit (“constant value”) based on the amortized cost of the fund’s investments. Accordingly, the securities lending collateral held and the obligation to the lending agent are both stated at constant value on the statement of net position.

The fair value of investments held by the fund is based upon valuations provided by a recognized pricing service. These funds are not registered with the Securities and Exchange Commission, but the custodial agent is subject to the over-sight of the Federal Reserve Board and the Massachusetts Commissioner of Banks. No income from the funds was as-signed to any other funds.

The maturities of investments made with the cash collat-eral generally do not match the maturities of the securities loaned. Since the securities loaned are callable on demand by either the lender or borrower, the life of the loans at June 30, 2019 and 2018, is eff ectively one day. As of June 30, 2019 and 2018, the state had no credit risk exposure to bor-rowers because the amounts owed to borrowers exceeded the amounts borrowers owed to the state.

Level 1 Level 2 Level 3 TotalPooled Investment Program 226,112$ -$ -$ 226,112$ Investment Property - - 13,554 13,554 Mortgages and Contracts - - 685 685 Other Nonpooled Investments 42,392 - 470 42,862 Total Investments 268,504$ -$ 14,709$ 283,213$

Investments Measured at NAV 444,863 Total Investments 728,076$

Level 1 Level 2 Level 3 TotalPooled Investment Program 152,320$ 8,234$ 401,008$ 561,562$ Investment Property - - 24,264 24,264 Mortgages and Contracts - - 3,787 3,787 Other Nonpooled Investments 40,456 - 62,873 103,329 Total Investments 192,776$ 8,234$ 491,932$ 692,942$

Assets at fair value as of June 30, 2019

Assets at fair value as of June 30, 2018




The fair value of the university’s share of securities lending balances on loan comprised the following (in thousands):

The fair value of the university’s share of total cash and securities collateral received as of June 30, 2019 and 2018, was $21,150,206 and $25,631,297, respectively. The fair value of the university’s share of investments purchased with cash collateral as of June 30, 2019 and 2018, was $12,630,808 and $13,511,298, respectively.

3. ACCOUNTS RECEIVABLEAccounts receivable, including amounts due from compo-nent units, comprised the following (in thousands):

4. NOTES RECEIVABLEStudent loans made through the Title IV Federal Perkins Loan Program are funded through interest earnings and repayment of loans. Federal Perkins loans deemed uncollect-ible are assigned to the U.S. Department of Education (ED) for collection. Due to the termination of the Perkins loan program by the U.S. Congress, no new loans are allowed to be made and the federal capital contribution (FCC) portion of the loan program will be returned to the ED as loans are collected. See Note 1, Section X for additional information. OSU has provided an allowance for uncollectible loans which is calculated using the cohort default rate reported to the federal government.

Institutional and Other Student Loans include loans off ered through the university itself and other various non-federal loan programs.

Notes receivable comprised the following (in thousands):

June 30, 2019

June 30, 2018

Investment TypeU.S. Treasury and Agency Securities 17,048$ 12,911$ Domestic Fixed Income Securities 3,681 12,204 Total 20,729$ 25,115$

June 30, 2019

June 30, 2018

Student Tuition and Fees 44,587$ 40,960$ Federal Grants and Contracts 41,829 36,869 State, Other Government, and Private Gifts, Grants and Contracts 6,872 10,113 Auxiliary Enterprises and Other Operating Activities 12,921 14,885 State Capital Construction Grants 7,659 11,220 Component Units 12,881 9,658 Other 8,699 7,031

135,448 130,736 Less: Allowance for Doubtful Accounts (7,787) (7,137) Accounts Receivable, Net 127,661$ 123,599$

Current Noncurrent Total

Institutional and Other Student Loans 147$ 540$ 687$ Perkins Loans 4,236 19,061 23,297 Other - 430 430

4,383 20,031 24,414 Less: Allowance for

Doubtful Accounts (585) (2,534) (3,119) Notes Receivable, Net 3,798$ 17,497$ 21,295$

Current Noncurrent Total

Institutional and Other Student Loans 157$ 598$ 755$ Perkins Loans 4,990 22,435 27,425 Other - 215 215

5,147 23,248 28,395 Less: Allowance for

Doubtful Accounts (599) (2,592) (3,191) Notes Receivable, Net 4,548$ 20,656$ 25,204$

June 30, 2019

June 30, 2018




5. CAPITAL ASSETSThe following schedule refl ects the changes in capital assets (in thousands):

Balance June 30,

2017 Additions

Transfer Completed

Assets

Retire. And

Adjust.

Balance June 30,

2018 Additions

Transfer Completed

Assets

Retire. And

Adjust.

Balance June 30,

2019

Capital Assets, Non-depreciable/Non-amortizable:Land 31,963$ 1,762$ -$ -$ 33,725$ 545$ -$ -$ 34,270$ Capitalized Collections 29,595 445 - (371) 29,669 297 - (10) 29,956 Construction in Progress 31,521 71,989 (26,735) 223 76,998 98,166 (56,609) (70) 118,485 Intangible Assets in Progress 144 - - - 144 - - - 144

Total Capital Assets, Non-depreciable/Non-amortizable 93,223 74,196 (26,735) (148) 140,536$ 99,008 (56,609) (80) 182,855

Capital Assets, Depreciable/Amortizable:Equipment 228,487 14,398 1,019 (8,951) 234,953 19,136 1,259 (10,163) 245,185 Library Materials 79,912 337 - - 80,249 479 - (525) 80,203 Buildings 1,407,952 21,199 11,527 - 1,440,678 11,304 52,030 - 1,504,012Land Improvements 31,382 391 3,628 - 35,401 626 2,359 - 38,386 Improvements Other Than Buildings 12,982 174 - - 13,156 - 525 - 13,681 Infrastructure 34,886 2,888 10,561 - 48,335 2,101 436 - 50,872 Intangible Assets 10,620 - - - 10,620 - - (125) 10,495

Total Capital Assets,Depreciable/Amortizable 1,806,221 39,387 26,735 (8,951) 1,863,392 33,646 56,609 (10,813) 1,942,834

Less Accumulated Depreciation/Amortization for:Equipment (165,553) (16,274) - 8,154 (173,673) (16,170) - 8,690 (181,153) Library Materials (77,250) (643) - (3) (77,896) (539) - 436 (77,999) Buildings (475,748) (35,126) - (40) (510,914) (37,555) - (12) (548,481) Land Improvements (14,243) (1,944) - (1) (16,188) (2,075) - (64) (18,327) Improvements Other Than Buildings (9,966) (552) - - (10,518) (492) - - (11,010) Infrastructure (20,513) (1,620) - - (22,133) (2,251) - - (24,384) Intangible Assets (9,292) (334) - - (9,626) (212) - 125 (9,713)

Total Accumulated Depreciation/Amortization (772,565) (56,493) - 8,110 (820,948) (59,294) - 9,175 (871,067)

Total Capital Assets, Net 1,126,879$ 57,090$ -$ (989)$ 1,182,980$ 73,360$ -$ (1,718)$ 1,254,622$

Capital Assets SummaryCapital Assets, Non-depreciable/

Non-amortizable 93,223$ 74,196$ (26,735)$ (148)$ 140,536$ 99,008$ (56,609)$ (80)$ 182,855$ Capital Assets, Depreciable/

Amortizable 1,806,221 39,387 26,735 (8,951) 1,863,392 33,646 56,609 (10,813) 1,942,834 Total Cost of Capital Assets 1,899,444 113,583 - (9,099) 2,003,928 132,654 - (10,893) 2,125,689 Less Accumulated Depreciation/

Amortization (772,565) (56,493) - 8,110 (820,948) (59,294) - 9,175 (871,067) Total Capital Assets, Net 1,126,879$ 57,090$ -$ (989)$ 1,182,980$ 73,360$ -$ (1,718)$ 1,254,622$




6. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCESDeferred outfl ows and infl ows of resources comprised the following (in thousands):

*Per GASB, deferred outfl ows of resources and deferred infl ows of resources arising from the diff erence between projected and actual earnings on plan investments are netted and shown as either a net deferred outfl ow of resources or a net deferred infl ow of resources.

June 30, 2019

June 30, 2018

Deferred Outflows of ResourcesPension

Contributions Subsequent to the Measurement Date 28,059$ 27,936$ Change in Proportionate Share 7,038 10,182 Difference Between Contributions and Proportionate Share of Contributions 237 213 Difference Between Expected and Actual Experience 10,284 14,212 Change in Assumptions 70,288 53,569 Net Difference Between Projected and Actual Earnings on Plan Investments* - 3,028

OPEBContributions Subsequent to the Measurement Date 2,309 2,247 Change in Proportionate Share 156 160 Difference Between Contributions and Proportionate Share of Contributions 42 - Change in Assumptions 464 -

Asset Retirement Obligations 15,922 16,386 Net Fair Value Loss on Foreign Currency Forward Contracts - 26

Total Deferred Outflows of Resources 134,799$ 127,959$

Deferred Inflows of ResourcesPension

Change in Proportionate Share 15,244$ -$ Difference Between Contributions and Proportionate Share of Contributions 4,209 6,288 Difference Between Projected and Actual Earnings on Plan Investments* 13,425 -

OPEBDifference Between Contributions and Proportionate Share of Contributions 41 47 Change in Proportionate Share 382 19 Difference Between Expected and Actual Experience 358 - Change in Assumptions 286 332 Net Difference Between Projected and Actual Earnings on Plan Investments* 613 516 Total Deferred Inflows of Resources 34,558$ 7,202$

7. ACCOUNTS PAYABLE AND ACCRUEDLIABILITIES

Accounts payable and accrued liabilities comprised the following (in thousands):

8. OPERATING LEASES A. Receivables/RevenuesOSU receives income for land, property and equipment that is leased to outside entities under noncancelable operating leases. Rental income received from leases was $5,394,178 and $5,442,166 for the years ended June 30, 2019 and 2018, respectively. The original cost of assets leased was

$20,844,780 and $24,729,787 for the years ended June 30, 2019 and 2018, respectively. Accumulated depreciation to-taled $8,021,133 and $10,172,474 for the years ended June 30, 2019 and 2018, respectively.

A signifi cant portion of OSU’s annual operating lease revenue and future lease receivables is derived from a lease between the university and INTO OSU, Inc., a separate legal entity wholly-owned by INTO Incorporated. INTO Incor-porated is an international corporation that partners with universities to provide study-abroad programs in multiple countries including the US, UK and China. The current lease expires in October of 2041, and encompasses the Interna-tional Living-Learning Center and several smaller campus buildings.

June 30, 2019

June 30, 2018

Services and Supplies 57,433$ 49,039$ Payroll Related 21,942 21,614 Accrued Interest 9,601 8,530 Salaries and Wages 6,908 6,790 Contract Retainage 4,904 2,584

Total 100,788$ 88,557$




Aggregate future minimum operating lease revenues at June 30, 2019 were (in thousands):

B. Payables/ExpensesOSU leases building and offi ce facilities and other equip-ment under noncancelable operating leases. Total costs for such leases and rents were $2,960,457 and $1,759,451 for the years ended June 30, 2019 and 2018, respectively.

Future minimum operating lease payments at June 30, 2018 were (in thousands):

For the year ending June 30, 2020 4,670$ 2021 4,020 2022 2,368 2023 2,019 2024 1,781 2025-2029 8,967 2030-2034 7,991 2035-2039 8,057 2040-2044 8,857 2045-2049 3,149 2050-2054 2,958 2055-2059 4772060-2064 5

Total Minimum Operating Lease Revenues 55,319$

For the year ending June 30,

2020 3,619$ 2021 2,9042022 2,5012023 2,4082024 2,3822025-2029 8,5582030-2034 1,191

Total Minimum Operating Lease Payments 23,563$




9. LONG-TERM LIABILITIESLong-term liability activity was as follows (in thousands):

Balance June 30,

2018 Additions Reductions

Balance June 30,

2019

Amounts Due Within

One Year Long-Term

PortionLong-Term Debt

Due to the State of Oregon:Contracts Payable 300,129$ 100$ (15,296)$ 284,933$ 13,682$ $ 271,251 Oregon Department of Energy Loans (SELP) 11,966 - (734) 11,232 678 10,554

Revenue Bonds 181,310 140,000 (366) 320,944 367 320,577 Installment Purchases 9 24 (17) 16 8 8

Total Long-Term Debt 493,414 140,124 (16,413) 617,125 14,735 602,390

Other Noncurrent LiabilitiesLine of Credit 46,800 - (25,250) 21,550 21,550 - Notes Payable 586 - (117) 469 117 352 PERS pre-SLGRP Pooled Liability 28,011 - (2,154) 25,857 2,452 23,405 Compensated Absences 31,036 26,222 (25,809) 31,449 25,472 5,977 Employee Termination 1,295 86 (1,295) 86 86 - Supplemental Retirement Plan 152 150 - 302 - 302Perkins Loan Program Liability 21,676 302 - 21,978 3,996 17,982

Total Other Noncurrent Liabilities 129,556 26,760 (54,625) 101,691 53,673 48,018 Total Long-Term Liabilities 622,970$ 166,884$ (71,038)$ 718,816$ 68,408$ 650,408$

Balance June 30,

2017 Additions Reductions

Balance June 30,

2018

Amounts Due Within One

Year Long-Term

PortionLong-Term Debt

Due to the State of Oregon:Contracts Payable 315,804$ 153$ (15,828)$ 300,129$ 15,296$ $ 284,833 Oregon Department of Energy Loans (SELP) 12,761 - (795) 11,966 721 11,245

Revenue Bonds 108,972 72,705 (367) 181,310 366 180,944 Installment Purchases 23 9 (23) 9 6 3

Total Long-Term Debt 437,560 72,867 (17,013) 493,414 16,389 477,025

Other Noncurrent LiabilitiesLine of Credit - 51,700 (4,900) 46,800 - 46,800Note Payable - 586 - 586 117 469 PERS pre-SLGRP Pooled Liability 29,764 - (1,753) 28,011 1,754 26,257 Compensated Absences 31,924 24,656 (25,544) 31,036 23,397 7,639 Employee Termination - 1,295 - 1,295 1,295 - Supplemental Retirement Plan - 152 - 152 - 152Perkins Loan Program Liability - 21,676 - 21,676 3,944 17,732

Total Other Noncurrent Liabilities 61,688 100,065 (32,197) 129,556 30,507 99,049 Total Long-Term Liabilities 499,248$ 172,932$ (49,210)$ 622,970$ 46,896$ 576,074$




OSU has multiple sources of fi nancing for capital construc-tion projects and other purposes. The state periodically issues bonded debt which it then loans to the university for capital construction. OSU has entered into contractual loan agreements with the state for the repayment of principal and interest amounts due. In addition, OSU may also bor-row funds from the Oregon Department of Energy through the Small-scale Energy Loan Program (SELP). The state may periodically issue new debt to refund previously held debt. Per the contract and loan agreements, when this occurs the state is required to pass the savings on to the university. OSU may also issue Revenue bonds as authorized by ORS 351.369.

A. Contracts PayableOSU has entered into contractual loan agreements with the state for repayment of debt instruments issued by the state on behalf of OSU for capital construction and refunding of previously issued debt. OSU makes loan payments (principal and interest) to the state in accordance with the loan agree-ments. Loans, with interest rates ranging from 0.95 percent to 7.00 percent, are due serially through 2044.

During the fi scal year ended June 30, 2019, the state did not issue any bonds that resulted in an increase or decrease to the university’s contracts payable to the state. Changes to OSU’s contracts payable to the state included debt service payments for principal of $14,575,313 and the addition and deduction of $99,931 and $721,120, respectively, for the amortization of accreted interest applicable to zero coupon bonds sold prior to 2002.

During the fi scal year ended June 30, 2018, the state did not issue any bonds that resulted in an increase or decrease to the university’s contracts payable to the state. Changes to OSU’s contracts payable to the state included debt service payments for principal of $14,434,387 and the addition and deduction of $152,883 and $1,393,891, respectively, for the amortization of accreted interest applicable to zero coupon bonds sold prior to 2002.

B. Oregon Department of Energy LoansOSU has entered into loan agreements with the Oregon Department of Energy (DOE) Small-scale Energy Loan Pro-gram (SELP) for energy conservation projects. OSU makes monthly loan payments (principal and interest) to the DOE in accordance with the loan agreements. SELP loans, with interest rates ranging from 4.03 percent to 5.15 percent, are due through 2032.

C. Revenue BondsGeneral Revenue Bonds, with bullet maturities, are due in fi scal years 2043 through 2052 and have eff ective yields ranging from 2.56 percent to 4.34 percent.

During the fi scal year ended June 30, 2019, OSU issued $140,000,000 par value of taxable General Revenue Bonds. The General Revenue Series 2019 taxable bonds were sold at par with bullet maturities due in 2043, 2046, 2047, 2050, 2051 and 2052, and eff ective rates of 3.88 and 4.05 percent. Bond proceeds will be used to fund capital construction.

The schedule of principal and interest payments for OSU debt is as follows (in thousands):

For the Year Ending June 30, Contracts Payable SELP

Revenue Bonds

Other Borrowings

Total Payments Principal Interest

2020 27,116$ 1,185$ 12,126$ 8$ 40,435$ 13,612$ 26,823$ 2021 26,467 1,186 12,690 8 40,351 13,927 26,424 2022 25,934 1,185 12,690 - 39,809 14,156 25,653 2023 25,401 1,185 12,690 - 39,276 14,645 24,631 2024 25,164 1,186 12,690 - 39,040 15,052 23,988 2025-2029 117,464 5,927 63,449 - 186,840 77,984 108,856 2030-2034 94,792 3,144 63,449 - 161,385 72,157 89,228 2035-2039 59,122 - 63,449 - 122,571 47,326 75,245 2040-2044 28,851 - 106,911 - 135,762 70,349 65,413 2045-2049 - - 201,202 - 201,202 160,005 41,197 2050-2054 - - 115,564 - 115,564 106,795 8,769 Accreted Interest 1,253 (1,253)

607,261$ 514,974$ Total Future Debt Service 430,311 14,998 676,910 16 1,122,235 Less: Interest Component of Future Payments (145,378) (3,766) (365,830) - (514,974)Principal Portion of Future Payments 284,933 11,232 311,080 16 607,261 Adjusted by:

Net Unamortized Bond Premiums - - 9,864 - 9,864Total Long-Term Debt 284,933$ 11,232$ 320,944$ 16$ 617,125$




Other changes to the revenue bond liability during fi scal year 2019 included the amortization of $366,406 in bond premium.

During the fi scal year ended June 30, 2018, OSU issued $72,705,000 par value of taxable General Revenue Bonds.

These General Revenue Series 2017 taxable bonds were sold at par with bullet maturities due in 2048 and 2049, and an eff ective rate of 3.75 percent for the following capital construction projects:

• Renovation of Gilkey Hall• Steam Line Replacement and Tunnel Extension• Upper Division and Graduate Student Housing Projects• Newport Housing Project• Minor Capital Programmatic Improvements

Other changes to the revenue bond liability during fi scal year 2018 included the amortization of $366,406 in bond premium.

D. Line of CreditDuring the fi scal year ended June 30, 2018, OSU executed a revolving credit agreement with U.S. Bank for $50,000,000 to provide short-term fi nancing for capital expenditures. Repayment of current borrowings is made upon receipt of anticipated gifts. The revolving credit agreement commit-ment expires on July 7, 2020.

During the fi scal year ended June 30, 2019, the university made payments totalling $25,250,000, most of which was associated with the acquisition of the Research Way lab building.

During the fi scal year ended June 30, 2018, in anticipation of secured pledges, OSU drew the following amounts for the associated projects:

• Valley Football Center $29,600,000

• Athletic Capital Projects $2,300,000

Additionally, OSU drew $19,800,000 to purchase the Re-search Way lab building.

Other changes to the line of credit liability during fi scal year 2018 included the payment of $4,900,000 in principal.

As of June 30, 2019, OSU has $28,450,000 of unused line of credit with U.S. Bank.

E. Note PayableDuring the fi scal year ended June 30, 2018, OSU entered into a promissory note to pay Samaritan Health Services, Inc. a total of $585,892 in fi ve equal annual payments of $117,178 with the fi rst payment due November 2018. The note arises from billing and payment errors between the university and Samaritan Health Services. There is no inter-est charged on the note and the note will be fully paid in fi scal year 2023. As of June 30, 2019, $468,714 remains to be paid.

F. State and Local Government Rate PoolPrior to the formation of the PERS State and Local Government Rate Pool (SLGRP), state and community colleges were pooled together in the State and Community College Pool (SCCP), and local government employers participated in the Local Government Rate Pool (LGRP). These two pools combined to form the SLGRP eff ective January 1, 2002, at which time a transitional pre-SLGRP Pooled Liability was created. The pre-SLGRP Pooled Liability is essentially a debt owed to the SLGRP by the SCCP employers. The balance of the pre-SLGRP Pooled Liability attributable to the state is being amortized over the period ending December 31, 2027. The liability is allocated by the state, based on salaries and wages, to all public universities, state proprietary funds and the government-wide reporting fund in the state’s comprehensive annual fi nancial report. OSU paid interest expense on the liability in the amounts of $1,852,372 and $1,918,604 for June 30, 2019 and 2018, respectively. Principal payments of $2,153,708 and $1,753,105 were applied to OSU’s liability for June 30, 2019 and 2018, respectively.

G. Employee TerminationOSU had a severance agreement with one former employee relating to early termination of their employment contract. The payout of this liability will be complete in fi scal year 2020.

H. Perkins Loan Program LiabilityDuring fi scal year 2018, OSU established a liability for the Federal Capital Contributions (FCC) received from the U.S. Department of Education (ED) which funded the Perkins loan program. With the close-out of the Perkins loan program, the FCC is due back to the ED. OSU has elected to continue to collect on these loans and will return the FCC to the ED as it is collected. See Note 1 Organization and Summary of Signifi cant Accounting Policies, Section X Perkins Loan Program Termination for additional information.

10. ASSET RETIREMENT OBLIGATIONSIn accordance with GASB Statement No. 83, Nuclear Regula-tory Commission (NRC) regulations, and Environmental Protection Agency (EPA) regulations, OSU reported an asset retirement obligation (ARO) liability of $19,115,280 for both the years ended June 30, 2019 and 2018. The remain-ing unamortized deferred outfl ow equaled $15,922,083 and $16,385,833, respectively, for 2019 and 2018.

Teaching, Research, Isotopes, General Atomics (TRIGA) Reactor

In 1967, the university installed the Oregon State TRIGA Reactor (OSTR). The reactor is housed in the OSU Radiation Center and is primarily used for training students, perform-ing various research projects and producing isotopes. The OSTR is licensed by the U.S. Nuclear Regulatory Commission




(NRC), which sets forth requirements that the university must adhere to, including those related to the decommis-sioning and retirement of the OSTR. See NRC regulations specifi c to decommissioning obligations at: https://www.nrc.gov/waste/decommissioning/reg-guides-comm/regulations.html

For the years ended June 30, 2019 and 2018, OSU reported an ARO liability of $18,550,000 related to the OSTR. The re-maining unamortized deferred outfl ow equaled $15,922,083 and $16,385,833, respectively, for 2019 and 2018. The method and assumptions used to measure the obligation were those set forth by the NRC in the series publication NUREG-1307, Revision 16 and 17. In November 2013, the university replaced the refl ector component of the OSTR thereby extending the reactor’s useful life by approximately 40 years. At June 30, 2019 and 2018, the OSTR had an estimated remaining useful life of 34.3 years and 35.3 years, respectively. Per the licensing agreement held between OSU and the NRC, OSU was required to submit a statement of intent regarding decommissioning funds. On July 31, 2007, OSU submitted such a letter stating that when a decision is made to terminate the facility license and decommission the facility, the university will request legislative appropriation of funds, or otherwise provide funds suffi ciently in ad-vance of decommissioning to prevent the delay of required activities. As of June 30, 2019, the university has made no decision to terminate the facility license nor made plans to decommission the facility. As such, no request for legislative funding has been made and no university assets have been restricted for payments related to the OSTR ARO liability.

OSU Physical Plant Underground Storage Tank (UST)

In 1954, OSU installed an underground storage tank (UST) to fuel the operations of its Physical Plant heating facility, located on the university’s Corvallis campus. The heating facility provided energy to most campus buildings until 2009 when the new OSU Energy Center was brought online. As the heating facility and the UST are no longer in service, the university has made plans to re-purpose the property upon which the heating facility and UST are currently located, and accordingly must remove the UST from the ground. The uni-versity expects to remove the UST during fi scal year 2020.

All USTs are regulated by the U.S. Environmental Protection Agency (EPA). The EPA enforces regulations over the opera-tion, maintenance, reporting, record keeping, installation and closure of all USTs. Per 40 CFR 280.70 of the EPA UST regulations, OSU must empty and clean the UST by remov-ing all liquids, dangerous vapor levels, and accumulated sludge. This work must be carried out carefully by trained professionals who follow standard safety practices.

See EPA regulations over USTs at: https://www.epa.gov/ust/underground-storage-tanks-usts-laws-and-regula-tions

For the years ended June 30, 2019 and 2018, the university reported an ARO liability for the UST of $565,280. Bids from vendors who adhere to the EPA standard safety practices were used to calculate the ARO liability for the UST. At June 30, 2019 and 2018, the underground storage tank had no remaining useful life. No legally required funding, assurance provisions, or requirements to restrict assets exist for the UST ARO.

11. UNRESTRICTED NET POSITIONUnrestricted net position is comprised of the following (in thousands):

12. PLEDGED GENERAL REVENUESThe university implemented a General Revenue Bond Program in 2015 to provide funding for capital construction and other related projects. As security for this debt, OSU has pledged general revenues which include student tuition and fees, auxiliary enterprise revenues, education depart-ment sales and services and other university operating revenues, with certain exclusions as shown in the table below. Net pledged general revenues is calculated by deducting excluded and restricted revenues from total operating revenues, and adding beginning unrestricted net position adjusted for the excluded items. Pledged revenues are as follows (in thousands):

June 30, 2019

June 30, 2018

University Operations 192,469$ 204,512$ Net Pension Liability, Net of Deferrals (See Notes 6 & 16) (219,289) (191,030) Compensated Absences Liability (26,180) (26,000) State and Local Government Rate Pool Liability (See Note 9) (25,857) (28,011) Other Post-Employment Benefits Liabilities, Net of Deferrals (See Notes 6 & 17) (17,611) (17,467) Asset Retirement Obligation, Net of Deferrals (See Notes 6 & 10) (3,193) (2,729) Total Unrestricted Net Position (99,661)$ (60,725)$

June 30, 2019

June 30, 2018

Total Operating Revenues 837,939$ 808,609$ (Less):

Student Building Fees (3,193) (3,295) Student Incidental Fees (27,132) (27,616) Federal Grants and Contracts (212,209) (203,740) State and Local Grants and Contracts (9,979) (10,450) Nongovernmental Grants and Contracts (23,491) (26,164) Amounts Required to be Deposited or Paid for University-Paid State Bonds (27,228) (29,388)

Plus:Adjusted Beginning Unrestricted Net Position (73,909) (57,596)

General Revenues Pledged to Repay Revenue Bonds 460,798$ 450,360$




13. INVESTMENT ACTIVITYInvestment Activity detail is as follows (in thousands):

14. OPERATING EXPENSES BY NATURAL CLASSIFICATIONThe Statement of Revenues, Expenses and Changes in Net Position reports operating expenses by their functional classifi ca-tion. The reporting of the net pension liability and OPEB liabilities/(asset) as per GASB Statement Nos. 68, 71 and 75, signifi cantly aff ects the reported compensation and benefi t expenses of OSU. Changes in the pension and OPEB expenses and associated reporting requirements increased the reported compensation and benefi t expenses of OSU by $27,549,392 and $35,337,201 for the fi scal years ended June 30, 2019 and 2018, respectively. The following displays operating expenses by both the functional and natural classifi cations (in thousands):

June 30, 2019

June 30, 2018

Royalties and Technology Transfer Income 5,488$ 5,026$ Investment Earnings 8,257 6,466 Endowment Income 1,728 1,796 Net Appreciation (Depreciation) of Investments 6,539 21 Gain (Loss) on Sale of Investments (1,607) (1,404) Interest Income 881 387

Total Investment Activity 21,286$ 12,292$

June 30, 2019Compensation

and BenefitsServices and

SuppliesScholarships and

FellowshipsDepreciation and

Amortization Other TotalInstruction 288,934$ 32,299$ 253$ 20$ 286$ 321,792$ Research 145,527 67,876 2,754 17 25 216,199 Public Services 84,456 58,582 804 21 1,171 145,034 Academic Support 68,081 22,150 3 - - 90,234 Student Services 27,850 5,722 2 21 56 33,651 Auxiliary Services 84,311 75,249 4,701 17,027 - 181,288 Institutional Support 64,196 27,078 5 - - 91,279 Operation & Maint. of Plant 18,626 21,664 - 111 - 40,401 Student Aid 15 348 28,837 - 788 29,988 Other 3,595 17,897 - 42,077 (13) 63,556

Total 785,591$ 328,865$ 37,359$ 59,294$ 2,313$ 1,213,422$

June 30, 2018Compensation and

BenefitsServices and

SuppliesScholarships and

FellowshipsDepreciation and

Amortization Other TotalInstruction 278,508$ 28,370$ 222$ 20$ 282$ 307,402$ Research 150,379 62,974 3,092 - 32 216,477 Public Services 82,603 46,782 738 46 1,054 131,223 Academic Support 64,216 21,847 15 - - 86,078 Student Services 29,281 6,956 18 - 58 36,313 Auxiliary Services 86,208 76,031 4,482 16,675 - 183,396 Institutional Support 61,697 25,780 5 - - 87,482Operation & Maint. of Plant 18,216 20,414 - 111 - 38,741Student Aid 10 138 29,853 - 1,003 31,004Other 2,940 9,893 - 39,641 13 52,487

Total 774,058$ 299,185$ 38,425$ 56,493$ 2,442$ 1,170,603$




15. GOVERNMENT APPROPRIATIONSOSU receives support from the state in the form of General Fund and Lottery appropriations. These appropriations are in support of the operations of the university and SELP debt service. Appropriations for SELP debt service are based on the loan agreements between the university and the Oregon Department of Energy. Additionally, OSU receives state general fund, state forest product harvest tax (Harvest Tax), federal appropriations, and county appropriations in support of operations of the statewide public services, which include the agricultural experiment stations, cooperative extension services and forestry research laboratories. OSU also receives lottery appropriations in support of outdoor school operations for middle school children, which the cooperative extension service administers on behalf of the state. Gov-ernment appropriations comprised the following (in thou-sands):

16. EMPLOYEE RETIREMENT PLANSOregon State University off ers various defi ned benefi t and defi ned contribution retirement plans to qualifi ed employees as described below.

A. Public Employees Retirement Plan(PERS)

ORGANIZATIONThe university participates with other state agencies in the Oregon Public Employees Retirement System (System), which is a cost-sharing multiple employer defi ned benefi t plan. Plan assets may be used to pay the benefi ts of the employees of any employer that provides pensions through the plan. PERS is administered in accordance with Oregon Revised Statutes (ORS) Chapter 238, Chapter 238A, and In-ternal Revenue Code Section 401(a). The Oregon Legislature has delegated authority to the Public Employees Retirement Board (PERS Board) to administer and manage the System.

PLAN MEMBERSHIPPERS memberships prior to January 1, 1996 are Tier One members. The 1995 Oregon Legislature enacted Chapter 654, Section 3, Oregon Laws 1995, which has been codifi ed into ORS 238.435. This legislation created a second tier of benefi ts for those who established membership on or after

January 1, 1996. The second tier does not have the Tier One assumed earnings rate guarantee and has a higher normal retirement age of 60, compared to 58 for Tier One. Both Tier One and Tier Two are defi ned benefi t plans.

The 2003 Legislature enacted HB 2020, codifi ed as ORS 238A, which created the Oregon Public Service Retirement Plan (OPSRP). OPSRP consists of the Pension Program De-fi ned Benefi t (DB) and the Individual Account Program (IAP). The IAP is a defi ned contribution plan. Membership includes public employees hired on or after August 29, 2003.

Beginning January 1, 2004, PERS active Tier One and Tier Two members became members of IAP of OPSRP. PERS members retained their existing Defi ned Benefi t Plan ac-counts, but member contributions are now deposited into the member’s IAP account, not into the member’s Defi ned Benefi t Plan account. Accounts are credited with earnings and losses, net of administrative expenses. OPSRP is part of PERS and is administered by the PERS Board.

PENSION PLAN REPORTThe PERS defi ned benefi t and defi ned contribution retire-ment plans are reported as pension trust funds in the fi du-ciary funds combining statements and as part of the Pension and Other Employee Benefi t Trust in the State of Oregon Comprehensive Annual Financial Report. PERS issues a separate, publicly available audited fi nancial report that may be obtained by writing to the Public Employees Retirement System, Fiscal Services Division, PO Box 23700, Tigard, OR 97281-3700. The report may also be accessed online at: www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESEmployers participating in the Plan are required to report pension information in their fi nancial statements for fi scal periods beginning on or after June 15, 2014, in accordance with GASB Statement No. 68, Accounting and Financial Re-porting for Pensions—an amendment of GASB Statement No. 27.

The requirements of this Statement incorporate provisions intended to refl ect the eff ects of transactions and events related to pensions in the measurement of employer li-abilities for pensions and recognition of pension expense and deferred outfl ows of resources and deferred infl ows of resources related to pensions.

SYSTEM BASIS OF ACCOUNTING Contributions for employers are recognized on the accrual basis of accounting. Employer contributions to PERS are calculated based on creditable compensation for active members reported by employers. Employer contributions are accrued when due pursuant to legal requirements.

PROPORTIONATE SHARE ALLOCATION METHODOLOGYThe basis for the employer’s proportion of the statewide plan is actuarially determined by comparing the employer’s

June 30, 2019

June 30, 2018

General Fund - Education & General 135,743$ 125,434$ General Fund - Statewide Public Services 63,449 60,961 General Fund - SELP Debt Service 1,073 1,073 Lottery Funding - Outdoor School 12,240 11,760 Lottery Funding - Sports Lottery 515 515 Harvest Tax 3,825 3,847 Total State 216,845$ 203,590$

Federal Appropriations 9,228 10,988 County Appropriations 12,349 12,342 Total Appropriations 238,422$ 226,920$




projected long-term contribution eff ort to the Plan with the total projected long-term contribution eff ort of all employ-ers. The contribution rate for every employer has at least two major components: Normal Cost Rate and Unfunded Actuarial Liability (UAL) Rate.

PENSION PLAN LIABILITYThe components of the Plan’s collective net pension liability as of the measurement dates of June 30, 2018 and 2017 are as follows (dollars in millions):

CHANGES SUBSEQUENT TO THE MEASUREMENT DATEThe university is not aware of any changes to benefi t terms or actuarial methods and assumptions subsequent to the June 30, 2018 measurement date.

OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) PENSION (CHAPTER 238) PROGRAMPENSION BENEFITSThe PERS retirement allowance is payable monthly for life. There are 13 retirement benefi t options a retiring employee may select from. These options include survivorship benefi ts and lump-sum refunds. The basic benefi t is based on years of service and fi nal average salary. A percentage (1.67 percent for general service employees) is multiplied by the number of years of service and the fi nal average salary. Benefi ts may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefi t results. Monthly payments must be a minimum of $200 per month or the member will receive a lump-sum payment of the actuarial equivalence of benefi ts to which he or she is entitled.

A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he or she has had a contribution in each of fi ve calendar years or has reached at least 50 years of age before ceasing employment with a participating employer. General Service employees may retire after reaching age 55. Tier One general service employee benefi ts are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Tier Two members are eligible for full benefi ts at age 60. The ORS Chapter 238 Defi ned Benefi t Pension Plan is closed to new members hired on or after August 29, 2003.

DEATH BENEFITSUpon the death of a non-retired member, the benefi ciary receives a lump-sum refund of the member’s account balance (accumulated contributions and interest). In addition, the benefi ciary will receive a lump-sum payment from employer funds equal to the account balance provided

one or more of the following conditions are met:

• The member was employed by a PERS employer at thetime of death.

• The member died within 120 days after termination ofPERS-covered employment.

• The member died as a result of injury sustained whileemployed in a PERS-covered job.

• The member was on an offi cial leave of absence from aPERS-covered job at the time of death.

DISABILITY BENEFITSA member with 10 or more years of creditable service who becomes disabled from other than duty-connected causes may receive a non-duty disability benefi t. A disability resulting from a job-incurred injury or illness qualifi es a member for disability benefi ts regardless of the length of PERS-covered service. Upon qualifying for either a non-duty or duty disability, service time is computed to age 58 when determining the monthly benefi t.

BENEFIT CHANGES AFTER RETIREMENT Members may choose to continue participation in a variable equities investment account after retiring and may experience annual benefi t fl uctuations due to changes in the market value of equity investments.

Under ORS 238.360 monthly benefi ts are adjusted annually through cost-of-living adjustments (COLAs). The COLA is capped at 2.0 percent.

OREGON PUBLIC SERVICE RETIREMENT PLAN (OPSRP DB) PENSION PROGRAM PENSION BENEFITSThe OPSRP provides a life pension funded by employer con-tributions. Benefi ts are calculated with the following formula for members who attain normal retirement age: 1.5 percent is multiplied by the number of years of service and the fi nal average salary. Normal retirement age for general service members is age 65, or age 58 with 30 years of retirement credit.

A member of the pension program becomes vested on the earliest of the following dates: the date the member com-pletes 600 hours of service in each of fi ve calendar years, the date the member reaches normal retirement age, and if the pension program is terminated, the date on which termi-nation becomes eff ective.

DEATH BENEFITSUpon the death of a non-retired member, the spouse or other person who is constitutionally required to be treated in the same manner as the spouse, receives for life 50 percent of the pension that would otherwise have been paid to the deceased member.

Collective Plan:June 30,

2018June 30,

2017

Total Pension Liability 84,476$ 79,852$ Plan Fiduciary Net Position 69,327 66,372 Plan Net Pension Liability 15,149$ 13,480$




DISABILITY BENEFITSA member who has accrued 10 or more years of retirement credits before the member becomes disabled or a member who becomes disabled due to job-related injury shall receive a disability benefi t of 45 percent of the member’s salary determined as of the last full month of employment before the disability occurred.

BENEFIT CHANGES AFTER RETIREMENTUnder ORS 238A.210 monthly benefi ts are adjusted annu-ally through COLAs. The cap on the COLA varies based on 1.25 percent on the fi rst $60,000 of annual benefi t and 0.15 percent on annual benefi ts above $60,000.

OREGON PUBLIC SERVICE RETIREMENT PLAN (OP-SRP IAP) PENSION PROGRAMAn IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee ac-count, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5-, 10-, 15-, 20-year period or an anticipated life span option. Upon the death of a non-retired member, the benefi ciary receives in a lump sum the member’s account balance, rollover ac-count balance, and vested employer optional contribution balance. If a retired member dies before the installment payments are completed, the benefi ciary may receive the remaining installment payments or choose a lump-sum pay-ment.

CONTRIBUTIONSPERS and OPSRP employee contribution requirements are established by ORS 238.200 and ORS 238A.330, respective-ly, and are credited to an employee’s account in the IAP and may be amended by an act of the Oregon Legislature. The PERS and OPSRP funding policies provide for monthly em-ployer contributions at actuarially determined rates. These contributions, expressed as a percentage of covered payroll, are intended to accumulate suffi cient assets to pay benefi ts when due. This funding policy applies to the PERS Defi ned Benefi t Plan and the Other Post-Employment Benefi t Plans.

Employer contribution rates for the fi scal year ended June 30, 2019 and 2018 were based on the December 31, 2015 actuarial valuation. The employer contribution rates for PERS and OPSRP are as follows:

The university’s required employer contributions for PERS and OPSRP for the years ended June 30, 2019 and 2018, were $34,373,599 and $33,853,548, respectively, including amounts to fund employer specifi c liabilities.

FEDERAL CIVIL SERVICE RETIREMENTSome OSU Extension Service employees hold federal ap-pointments. Prior to December 31, 1986, federal appointees were required to participate in the Federal Civil Service Retirement System (CSRS), a defi ned benefi t plan. CSRS em-ployees are subject to the Hospital Insurance portion of the Federal Insurance Contributions Act (FICA), CSRS employee deduction of 7.0 percent, and employer contribution of 7.0 percent, and are also eligible for optional membership in PERS.

The Federal Employees Retirement System (FERS), a defi ned benefi t plan, was created beginning January 1, 1987. Employ-ees on federal appointment hired after December 31, 1983 were automatically converted to FERS. Other federal em-ployees not covered by FERS had a one-time option to trans-fer to FERS up to December 31, 1987. New FERS employees contribute 0.8 percent with an employer contribution rate of 13.7 percent. FERS employees are not eligible for member-ship in PERS and they contribute at the full FICA rate.

The university’s required employer contributions for CSRS and FERS for the years ended June 30, 2019 and 2018, were $265,294 and $279,797, respectively.

NET PENSION LIABILITYAt June 30, 2019, the university reported a liability of $302,317,305 for its proportionate share of the PERS net pension liability. The net pension liability as of June 30, 2019 was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2016, rolled forward to the measurement date. At June 30, 2018, the university reported a liability of $293,881,485 for its proportionate share of the PERS net pension liability. The net pension liability as of June 30, 2018 was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2015 , rolled forward to the measurement date. The PERS system does not provide OSU an audited proportionate share as a separate employer; the university is allocated a proportionate share of PERS employer state agencies. The state Department of Administrative Services (DAS) calculated OSU’s proportionate share of all state agencies internally based on actual contributions by OSU as compared to the total for employer state agencies. The Oregon Audits Division reviewed this internal calculation. At June 30, 2019 and 2018, OSU’s proportion was 2.00 and 2.18 percent, respectively, of the statewide pension plan.

For the years ended June 30, 2019 and 2018, OSU recorded total pension expense of $56,319,691 and $64,361,101,

2019 2018Base Tier One/Two Rate 15.09% 15.09%SLGRP Rate 1.76% 1.76%RHIA/RHIPA OPEB Rate 0.99% 0.99%

Total PERS Tier One/Two Rate 17.84% 17.84%

Base OPSRP Rate 8.21% 8.21%SLGRP Rate 1.76% 1.76%RHIA/RHIPA OPEB Rate 0.81% 0.81%

Total OPSRP Rate 10.78% 10.78%




respectively, due to the change in net pension liability, changes to deferred outfl ows and deferred infl ows, and amortization of previously deferred amounts.

DEFERRED ITEMSMost deferred items are calculated at the system-wide level and are allocated to employers based on their proportionate share. However, changes in employer proportion and the dif-ference between employer contributions and proportionate share of contributions are calculated at the employer level. For fi scal years ending June 30, 2019 and 2018, deferred items include:

• Diff erence between expected and actual experience

• Changes in assumptions

• Net diff erence between projected and actual pension planinvestment earnings

• Changes in employer proportion since the priormeasurement date

• A diff erence between employer contributions andproportionate share of contributions

• Contributions subsequent to the measurement date

Diff erences between expected and actual experience, changes in assumption, and changes in employer proportion are amortized over the average remaining service lives of all plan participants, including retirees, determined as of the beginning of the respective measurement period. Employ-ers are required to recognize pension expense based on the balance of the closed period “layers” attributable to each measurement period.

The average remaining service lives determined as of the beginning of each measurement period are as follows:

• Measurement period ended June 30, 2018 – 5.2 years





The diff erence between projected and actual pension plan investment earnings attributable to each measurement pe-riod is amortized over a closed fi ve-year period.

One year of amortization is recognized in the university’s total pension expense for fi scal years 2019 and 2018.

At June 30, 2019, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to pensions from the following sources (in thousands):

Of the amount reported as deferred outfl ows of resources, $28,059,238 are related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020.

At June 30, 2018, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to pensions from the following sources (in thousands):

Deferred Outflows of Resources

Deferred Inflows of Resources

Difference Between Expected and Actual Experience 10,284$ -$ Change in Assumptions 70,288 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - (13,425)Change in Proportionate Share 7,038 (15,244)Differences Between Contributions and Proportionate Share of Contributions 237 (4,209)

Total 87,847$ (32,878)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) 54,969 Contributions Subsequent to the MD 28,059 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 83,028$



Difference Between Expected and Actual Experience 14,212$ -$ Change in Assumptions 53,569 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 3,028 - Change in Proportionate Share 10,182 -

Differences Between Contributions and Proportionate Share of Contributions 213 (6,288)

Total 81,204$ (6,288)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) 74,916 Contributions Subsequent to the MD 27,936 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 102,852$




Of the amount reported as deferred outfl ows of resources, $27,935,620 are related to contributions subsequent to the measurement date and are recognized as a reduction of the net pension liability in the year ended June 30, 2019.

As of June 30, 2019, other amounts reported as deferred outfl ows of resources and deferred infl ows of resources related to pensions will be recognized in pension expense as follows (in thousands):

ACTUARIAL METHODS AND ASSUMPTIONSThe following methods and assumptions were used in the development of the total pension liability:

Actuarial valuations of an ongoing plan involve estimates of the value of projected benefi ts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered-years.

Year Ended June 30:2019 35,482$ 2020 24,459 2021 (6,163) 2022 133 2023 1,058

54,969$

As of: June 30, 2019 June 30, 2018Valuation Date December 31, 2016 December 31, 2015Measurement Date June 30, 2018 June 30, 2017

Experience Study Report2016, published

July 20172014, published September 2015

Actuarial Cost Method

Inflation RateLong-Term Expected Rate of Return

7.20 percent 7.50 percent

Discount Rate 7.20 percent 7.50 percentProjected Salary Increases

Cost of Living Adjustments (COLA)

RP-2014 Healthy annuitant, sex-distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation.

RP-2000 Sex-distinct, generational per Scale BB, with collar adjustments and set-backs as described in the valuation.

RP-2014 Employees, sex-distinct, generational with Unisex, Social Security Data Scale, with collar adjustments and set-backs as described in the valuation.

Mortality rates are a percentage of healthy retiree rates that vary by group, as described in the valuation.

RP-2014 Disabled retirees, sex-distinct, generational with Unisex, Social Security Data Scale.

Mortality rates are a percentage (70% for males, 95% for females) of the RP-2000 Sex-distinct, generational per scale BB, disabled mortality table.

Entry Age Normal

Actuarial Methods:

Actuarial Assumptions:

Mortality

Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in accordance with Moro decision; blend based on service

Healthy retirees and beneficiaries:

Active members:

Disabled retirees:

2.50 percent

3.50 percent




DISCOUNT RATEThe discount rate used to measure the total pension liabil-ity at June 30, 2019 and 2018 was 7.20 and 7.50 percent, respectively. The projection of cash fl ows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates, as actuarially deter-mined. Based on those assumptions, the pension plan’s fi du-ciary net position was projected to be available to make all projected future benefi t payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefi t payments to determine the total pension liability.

SENSITIVITY ANALYSISThe sensitivity analysis shows the sensitivity of the univer-sity’s proportionate share of the net pension liability to changes in the discount rate. The following presents the university’s proportionate share of the net pension liability calculated using the discount rate of 7.20 percent as of June 30, 2019 and 7.50 percent as of June 30, 2018, as well as what the university’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate (in thousands):

DEPLETION DATE PROJECTIONGASB Statement No. 68, Accounting and Financial Report-ing for Pensions—an amendment of GASB Statement No. 27, generally requires that a blended discount rate be used to measure the total pension liability (the actuarial accrued liability calculated using the individual entry age normal cost method). The long-term expected return on plan invest-ments may be used to discount liabilities to the extent that the plan’s fi duciary net position (fair market value of assets) is projected to cover benefi t payments and administrative expenses. A 20-year high quality (AA/Aa or higher) munici-pal bond rate must be used for periods where the fi duciary net position is not projected to cover benefi t payments and administrative expenses. Determining the discount rate under GASB Statement No. 68 will often require that the actuary perform complex projections of future benefi t pay-ments and pension plan investments. GASB Statement No. 68 (paragraph 67) does allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB Statement No. 68 does not contemplate a specifi c method for making an alternative evaluation of suffi ciency; it is left to professional judgment.

The following circumstances justify an alternative evaluation of suffi ciency for Oregon PERS:

• Oregon PERS has a formal written policy to calculatean actuarially determined contribution (ADC), which isarticulated in the actuarial valuation report.

• The ADC is based on a closed, layered amortizationperiod, which means that payment of the full ADC eachyear will bring the plan to a 100 percent funded positionby the end of the amortization period if future experiencefollows assumptions.

• GASB Statement No. 68 specifi es that the projectionsregarding future solvency assume that plan assets earn theassumed rate of return and there are no future changes inthe plan provisions or actuarial methods and assumptions,which means that the projections would not refl ect anyadverse future experience that might impact the plan’sfunded position.

Based on these circumstances, it is the independent actu-ary’s opinion that the detailed depletion date projections outlined in GASB Statement No. 68 would clearly indicate that the fi duciary net position is always projected to be suf-fi cient to cover benefi t payments and administrative expens-es. As such, the long-term expected rate of return was used to discount the liability.

ASSUMED ASSET ALLOCATION

LONG-TERM EXPECTED RATE OF RETURNTo develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2015 the PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the OIC investment advisors. Each asset assumption is based on a consistent set of underlying assumptions, and includes adjustment for the infl ation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. The table on the next page shows a summary of long-term expected rate of return by asset class. For more information on the Plan’s portfolio, assumed asset allocation, and the long-term expected rate of return for each major asset class, calculated using both arithmetic and geometric means, see PERS’

June 30, 2019 June 30, 20181% Decrease6.2%/6.5%

$505,229 $500,828

Current Discount Rate7.2%/7.5%

302,317 293,882

1% Increase8.2%/8.5%

134,830 120,836

Asset Class/ StrategyCash 0.00 % 3.00 % 0.00 %Debt Securities 15.00 25.00 20.00Public Equity 32.50 42.50 37.50Private Equity 13.50 21.50 17.50Real Estate 9.50 15.50 12.50Alternative Equity 0.00 12.50 12.50Opportunity Portfolio

0.00 3.00 0.00

Total 100 %

Low Range High Range OIC Target




audited comprehensive annual fi nancial reports at:

www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx

LONG-TERM EXPECTED RATE OF RETURN BY ASSET CLASS

BOND DEBTThe retirement bond debt service assessment was autho-rized by the Oregon Legislature in 2003 to sell general obligation bonds in the amount of $2 billion to pay a PERS unfunded actuarial liability. This action reduced the PERS contribution rate for PERS covered employers in the state actuarial pool in November 2003.

The Oregon Department of Administrative Services coor-dinates the debt service assessments to PERS employers to cover the bond debt service payments. PERS employers are assessed a percentage of PERS-subject payroll to fund the payments. The assessment rate is adjusted periodically over the life of the twenty-four year debt repayment schedule.

The payroll assessment for the pension obligation bond began in May 2004. The assessment rate for fi scal year 2019 was 6.2 percent. The assessment rate for fi scal year 2018 was 6.0 percent through October 31, 2017 and was increased to 6.2 percent eff ective November 1, 2017. Payroll assessments paid by OSU for the fi scal years ended June 30, 2019 and 2018, were $16,456,058 and $15,699,309, respectively.

B. Other Retirement PlansOPTIONAL RETIREMENT PLAN The 1995 Oregon Legislature enacted legislation that authorized the university to off er a defi ned contribution

retirement plan as an alternative to PERS. A Retirement Plan Committee was appointed to administer the Optional Retire-ment Plan (ORP) and named trustees to manage plan assets placed with mutual funds and insurance companies. Begin-ning April 1, 1996, the ORP was made available to university academic and administrative faculty. Employees choosing the ORP may invest the employee and employer contribu-tions in one of two investment companies, either Fidelity or the Teacher’s Insurance Annuity Association (TIAA).

The ORP consists of four tiers. Membership under ORP Tier One and Tier Two is determined using the same date of entry criteria as PERS. The third tier is determined by the date of entry applicable to the OPSRP. Employees hired on or after July 1, 2014 who elected the ORP are Tier Four members. The fi rst contributions for Tier Four were payable January 2015, after six-months of qualifying service.

Tier Four is a departure from the other three tiers. The employee is entitled to an employer contribution plus a “match” contribution based on the employee’s participation in the voluntary 403(b) investment plan. The employer contribution is fi xed at 8 percent by plan rules and is unaff ected by PERS rates, unlike the other tiers. The employer provides an ORP match contribution equal to 403(b) deferrals up to a 4 percent maximum. Under the ORP Tiers One, Two and Three, the employee’s contribution rate is 6 percent and is paid by the employer.

The employer contribution rates for the ORP are as follows:

OREGON PUBLIC UNIVERSITIES 401(A) DEFINED CONTRIBUTION PLANEligible ranked faculty participate in the TIAA retirement program, a defi ned contribution plan, on all salary in excess of $4,800 dollars per calendar year. Employee and employer contributions are directed to PERS on the fi rst $4,800 of salary. The contribution to TIAA annuities are supplemental to PERS. To participate in this retirement option, employ-ees must have been hired on or before September 9, 1995. This plan was closed to new enrollment at the time the ORP started in 1996. The legacy plan, Oregon University System 401(a) Defi ned Contribution Plan, document was amended and restated July 1, 2015, and the Plan Sponsor is now the Board of Trustees for the University of Oregon.

FEDERAL CIVIL SERVICE RETIREMENT - THRIFT SAV-INGS PLANOSU Extension Service employees that hold federal appoint-ments can also participate in a Thrift Savings Plan (TSP) with an automatic employer contribution of 1 percent. Employ-ees may also contribute to this plan at variable rates up to the limit set by the Internal Revenue Service, in which case

Asset Class TargetCompound

Annual Return (Geometric)

Core Fixed Income 8.00% 3.49% Short-Term Bonds 8.00 3.38Bank/Leveraged Loans 3.00 5.09High Yield Bonds 1.00 6.45Large/Mid Cap US Equities 15.75 6.30Small Cap US Equities 1.31 6.69Micro Cap US Equities 1.31 6.80Developed Foreign Equities 13.13 6.71Emerging Market Equities 4.13 7.45Non-US Small Cap Equities 1.88 7.01Private Equity 17.50 7.82Real Estate (Property) 10.00 5.51Real Estate (REITS) 2.50 6.37Hedge Fund of Funds - Diversified

2.50 4.09

Hedge Fund - Event-driven 0.63 5.86Timber 1.88 5.62Farmland 1.88 6.15Infrastructure 3.75 6.6Commodities 1.88 3.84

Assumed Inflation – Mean 2.50%2019 2018

Tier One/Two 23.68% 23.68%Tier Three 9.29% 9.29%Tier Four 8.00% 8.00%




the employer contributes at a variable rate up to 5 percent. CSRS employees are also eligible for participation in the TSP but without employer contributions.

SUPPLEMENTAL RETIREMENT PLANS (SRP)During fi scal year 2018, per direction and authorization from the board of trustees, OSU established a supplemental retirement plan for eligible employees who have been designated to become a participant in the plan. The supplemental plan has two parts: a 403(b) defi ned contribution plan and a 415(m) excess benefi t plan. Investments of the 403(b) plan are invested as directed by the employee. The 415(m) plan assets are invested and managed by TIAA. The university has recorded an investment for the balance managed by TIAA as well as an off setting liability for the amount that will be payable to the employee upon completion of their contract.

No changes were made to the supplemental retirement plans during fi scal year 2019.

During the fi scal year ended June 30, 2019, the university contributed $149,200 to the 415(m) plan, and $30,500 to the employees’ 403(b) plan. During the fi scal year ended June 30, 2018, the university contributed $152,431 to the 415(m) plan, and $30,000 to the employees’ 403(b) plan.

SUMMARY OF OTHER PENSION PAYMENTSOSU’s total payroll for the year ended June 30, 2019 was $519,563,318, of which $191,025,223 was subject to defi ned contribution retirement plan contributions. The following schedule lists pension payments made by OSU for the fi scal year (in thousands):

Of the employee share, OSU paid $9,331,481 of the ORP and $56,793 of the TIAA employee contributions on behalf of their employees during the fi scal year ended June 30, 2019. The FERS-TSP contributions of $188,428 represents employee contributions to the TSP for FERS employees that were matched from one to fi ve percent by the employer in fi scal year 2019.

OSU’s total payroll for the year ended June 30, 2018 was $502,839,495, of which $173,609,733 was subject to de-fi ned contribution retirement plan contributions.

The following schedule lists pension payments made by OSU for the fi scal year (in thousands):

Of the employee share, OSU paid $8,761,803 of the ORP and $54,110 of the TIAA employee contributions on behalf of their employees during the fi scal year ended June 30, 2018. The FERS-TSP contributions of $193,393 represents employee contributions to the TSP for FERS employees that were matched from one to fi ve percent by the employer in fi scal year 2018.

17. OTHER POST-EMPLOYMENT BENEFITS (OPEB)

A. Public Employees Retirement Plans (PERS)

PLAN DESCRIPTIONThe Public Employees Retirement System (PERS) Board contracts for health insurance coverage on behalf of eligible PERS members. Eligible retirees pay their own age-adjusted premiums. To help retirees defray the cost of these premiums, PERS also administers two separate defi ned benefi t other post-employment benefi t (OPEB) plans: the Retirement Health Insurance Account (RHIA) and the Retiree Health Insurance Premium Account (RHIPA). Only Tier One and Tier Two PERS members are eligible to participate in the RHIA and RHIPA plans. (Refer to Note 16 for details concerning Tier One and Tier Two membership in PERS.)

The RHIA is a cost-sharing multiple-employer defi ned ben-efi t OPEB plan in which the university participates. Estab-lished under Oregon Revised Statute (ORS) 238.420, the plan provides a payment of up to $60 toward the monthly cost of health insurance for eligible PERS members. To be eli-gible to receive the RHIA subsidy, the member must (1) have eight years or more of qualifying service in PERS at the time of retirement or receive a disability allowance as if the mem-ber had eight years or more of creditable service in PERS, (2) receive both Medicare parts A and B coverage, and (3) enroll in a PERS-sponsored health plan. A surviving spouse or dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if he or she (1) is receiving a retirement benefi t or allowance from PERS or (2) was insured at the time the member died and the member retired before May 1, 1991. The Legislature has sole authority to amend the benefi t provisions and employer obligations for the RHIA plan.

Employer Contribution

As a % of Covered Payroll

Employee Contribution


ORP 14,498$ 7.59% 11,661$ 6.10%TIAA 57 0.03 57 0.03FERS - TSP 77 0.04 188 0.10SRP 180 0.09 - 0.00

Total 14,812$ 7.75% 11,906$ 6.23%

June 30, 2019

Employer Contribution


Employee Contribution


ORP 16,929$ 9.75% 8,762$ 5.05%TIAA 54 0.03 54 0.03FERS - TSP 78 0.04 193 0.11SRP 182 0.11 - 0.00

Total 17,243$ 9.93% 9,009$ 5.19%

June 30, 2018




Established under ORS 238.415, the RHIPA is considered a cost-sharing multiple-employer defi ned benefi t OPEB plan for fi nancial reporting purposes. The plan provides payment of the average diff erence between the health insurance premiums paid by retired state employees under contracts entered into by the PERS Board, and health insurance premiums paid by state employees who are not retired. PERS members are qualifi ed to receive the RHIPA subsidy if they have eight or more years of qualifying service in PERS at the time of retirement or receive a disability pension calculated as if they had eight or more years of qualifying service, but are not eligible for federal Medicare coverage. A surviving spouse or dependent of a deceased retired state employee is eligible to receive the subsidy if he or she (1) is receiving a retirement benefi t or allowance from PERS or (2) was insured at the time the member died and the member retired on or after September 29, 1991. The Legislature has sole authority to amend the benefi t provisions and employer obligations of the RHIPA plan.

Both RHIA and RHIPA are closed to employees hired on or after August 29, 2003, who had not established membership prior to that date.

OPEB PLANS REPORTThe PERS RHIA and RHIPA defi ned benefi t OPEB plans are reported separately under Other Employee Benefi t Trust Funds in the fi duciary funds combining statements and as part of the Pension and Other Employee Benefi t Trust in the state’s comprehensive annual fi nancial report. PERS issues a separate, publicly available fi nancial report that includes audited fi nancial statements and required supplementary information. The report may be obtained by writing to the Public Employees Retirement System, Fiscal Services Division, PO Box 23700, Tigard, OR 97281-3700. The report may also be accessed online at: www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESEmployers participating in RHIA and RHIPA plans are re-quired to report OPEB information in their fi nancial state-ments for fi scal periods beginning on or after June 15, 2017, in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefi ts Other Than Pensions.

The requirements of this Statement incorporate provisions intended to refl ect the eff ects of transactions and events related to OPEB in the measurement of employer liabilities for OPEB and recognition of OPEB expense and deferred outfl ows of resources and deferred infl ows of resources.

BASIS OF ACCOUNTINGThe fi nancial statements for the PERS OPEB plans are prepared using the accrual basis of accounting. Employer contributions to PERS are calculated based on creditable compensation for active members reported by employers. Employer contributions are accrued when due pursuant to legal requirements.

PROPORTIONATE SHARE ALLOCATION METHODOLOGYThe basis for the employer’s proportion of the statewide plan is determined by comparing the employer’s actual, legally required contributions made to the Plan during the fi scal year with the total actual contributions made by all employers in the fi scal year.

OPEB TOTAL PLAN (ASSET) LIABILITYThe components of the collective Net OPEB liability (asset) for the OPEB plans as of the measurement dates of June 30, 2018 and June 30, 2017 are as follows (in millions):

CHANGES SUBSEQUENT TO THE MEASUREMENT DATEThe university is not aware of any changes to benefi t terms or actuarial methods and assumptions subsequent to the June 30, 2018 measurement date.

CONTRIBUTIONSBoth of the OPEB plans administered by PERS are funded through actuarially determined employer contributions.

For the fi scal years ended June 30, 2019 and 2018, the university contributed 0.07 percent of PERS-covered payroll for Tier One and Tier Two plan members to fund the normal cost portion of RHIA benefi ts. In addition, the university contributed 0.43 percent of all PERS-covered payroll to amortize the unfunded actuarial accrued liability over a fi xed period with new unfunded actuarial accrued liabilities amortized over 20 years. The university’s required employer contributions for the years ended June 30, 2019 and 2018 were approximately $1,204,708 and $1,171,032, respec-tively. The actual contribution equaled the annual required contribution for the year.

For the fi scal years ended June 30, 2019 and 2018, the university contributed 0.11 percent of PERS-covered payroll for Tier One and Tier Two plan members to fund the normal cost portion of RHIPA benefi ts. In addition, the university contributed 0.38 percent of all PERS-covered payroll to amortize the unfunded actuarial accrued liability over a fi xed period with new unfunded actuarial accrued liabilities amortized over 20 years. The university’s required employer contributions for the years ended June 30, 2019 and 2018 were approximately $1,103,573 and $1,076,546, respec-tively. The actual contribution equaled the annual required contribution for the year.

Net OPEB - RHIA (Asset)June 30,

2018June 30,

2017

Total OPEB - RHIA Liability 465.2$ 470.0$ Plan Fiduciary Net Position 576.8 511.8 Plan Net OPEB - RHIA (Asset) (111.6)$ (41.8)$

Net OPEB - RHIPA LiabilityTotal OPEB - RHIA Liability 70.3$ 70.9$ Plan Fiduciary Net Position 35.0 24.3 Plan Net OPEB - RHIA Liability 35.3$ 46.6$




NET OPEB ASSET/LIABILITY a. RHIAAt June 30, 2019, the university reported an asset of $2,626,012 for its proportionate share of the RHIA net OPEB asset. The net OPEB asset as of June 30, 2019 was measured as of June 30, 2018, and the total OPEB asset used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2016. At June 30, 2018, the university reported an asset of $1,027,381 for its proportionate share of the RHIA net OPEB asset. The net OPEB asset as of June 30, 2018 was measured as of June 30, 2017, and the total OPEB asset used to calculate the net OPEB asset was determined by an actuarial valuation as of December 31, 2015. The PERS system does not provide OSU an audited proportionate share as a separate employer; the university is allocated a proportionate share of PERS employer state agencies. The state Department of Administrative Services (DAS) calculated OSU’s proportionate share of all state agencies internally based on actual contributions by OSU as compared to the total for employer state agencies. The Oregon Audits Division reviewed this internal calculation. At June 30, 2019 and June 30, 2018, OSU’s proportion was 2.35 and 2.46 percent of the statewide OPEB plan, respectively.

For the years ended June 30, 2019 and 2018, OSU recorded OPEB related expense of ($233,541) and ($1,664), respec-tively due to changes in the net RHIA OPEB asset, deferred outfl ows and deferred infl ows, and amortization of previ-ously deferred amounts.

b. RHIPAFor the year ended June 30, 2019, the university reported a liability of $2,820,513 for its proportionate share of the RHIPA net OPEB liability. The net OPEB liability as of June 30, 2019 was measured as of June 30, 2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2016. For the year ended June 30, 2018, the university reported a liability of $3,717,755 for its proportionate share of the RHIPA net OPEB liability. The net OPEB liability as of June 30, 2018 was measured as of June 30, 2017, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2015. The PERS system does not provide OSU an audited proportionate share as a separate employer; the university is allocated a proportionate share of PERS employer state agencies. DAS calculated OSU’s proportionate share of all state agencies internally based on actual contributions by OSU as compared to the total for employer state agencies. The Oregon Audits Division reviewed this internal calculation. At June 30, 2019 and June 30, 2018, OSU’s proportion was 7.98 and 7.97 percent, respectively, of the statewide OPEB plan, respectively.

For the years ended June 30, 2019 and 2018, OSU recorded OPEB related expense of $341,955 and $422,518, respectively, due to changes in the net RHIPA OPEB liability, deferred outfl ows and deferred infl ows, and amortization of previously deferred amounts.

DEFERRED ITEMSa. RHIAMost deferred items are calculated at the system-wide level and are allocated to employers based on their proportionate share. However, changes in employer proportion and the dif-ference between employer contributions and proportionate share of contributions are calculated at the employer level. For fi scal years ending June 30, 2019 and 2018, deferred items include:


• Diff erence due to changes in assumptions

• Net diff erence between projected and actual OPEB planinvestment earnings


• A diff erence between employer contributions andproportionate share of contributions


Diff erences between expected and actual experience, changes in assumption, and change in employer proportion are amortized over the average remaining service lives of all plan participants, including retirees, determined as of the beginning of the respective measurement period. Employ-ers are required to recognize OPEB expense based on the balance of the closed period “layers” attributable to each measurement period.

The average remaining service lives determined as of the beginning of the measurement period are as follows:

• Measurement period ended June 30, 2018 - 3.3 years


The diff erence between projected and actual OPEB plan in-vestment earnings attributable to each measurement period is amortized over a closed fi ve-year period.

One year of amortization is recognized in the university’s total OPEB expense for fi scal years 2019 and 2018.




At June 30, 2019, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to RHIA OPEB from the following sources (in thousands):

Of the amount reported as deferred outfl ows of resources, $1,204,708 are related to contributions subsequent to the measurement date and will be recognized as an increase of the net OPEB asset in the year ended June 30, 2020.

At June 30, 2018, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to RHIA OPEB from the following sources (in thousands):

Of the amount reported as deferred outfl ows of resources, $1,171,032 are related to contributions subsequent to the measurement date and are recognized as an increase of the net OPEB asset in the year ended June 30, 2019.

As of June 30, 2019, other amounts reported as deferred outfl ows of resources and deferred infl ows of resources related to RHIA OPEB will be recognized in OPEB expense as follows (in thousands):

b. RHIPAMost deferred items are calculated at the system-wide level and are allocated to employers based on their proportionate share. However, changes in employer proportion and the dif-ference between employer contributions and proportionate share of contributions are calculated at the employer level. For fi scal years ending June 30, 2019 and 2018, deferred items include:


• Diff erence due to changes in assumptions

• Net diff erence between projected and actual OPEB planinvestment earnings


• Diff erence between employer contributions andproportionate share of contributions


Diff erences between expected and actual experience, changes in assumptions, and change in employer proportion are amortized over the average remaining service lives of all plan participants, including retirees, determined as of the beginning of the respective measurement period. Employ-ers are required to recognize OPEB expense based on the balance of the closed period “layers” attributable to each measurement period.

The average remaining service lives determined as of the beginning of the measurement period are as follows:



The diff erence between projected and actual OPEB plan investment earnings attributable to each measurement period is amortized over a closed fi ve-year period.




Difference Between Expected and Actual Experience -$ (149)$ Change in Assumptions - (8) Net Difference Between Projected and Actual Earnings on OPEB Plan Investments - (566) Change in Proportion 29 - Difference Between Fund Contributions and Proportionate Share of Contributions 29 (25)

Total 58$ (748)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) (690)Contributions Subsequent to the MD 1,205 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 515$



Net Difference Between Projected and Actual Earnings on OPEB Plan Investments -$ (476)$ Change in Proportion 20 - Difference Between Fund Contributions and Proportionate Share of Contributions - (39)

Total 20$ (515)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) (495) Contributions Subsequent to the MD 1,171 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 676$

Year Ended June 30:2019 (226)$ 2020 (223)2021 (185)2022 (56)

(690)$




At June 30, 2019, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to RHIPA OPEB from the following sources (in thousands):

Of the amount reported as deferred outfl ows of resources, $1,103,573 are related to contributions subsequent to the measurement date and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020.

At June 30, 2018, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to RHIPA OPEB from the following sources (in thousands):

Of the amount reported as deferred outfl ows of resources, $1,076,546 are related to contributions subsequent to the measurement date and are recognized as a reduction of the net OPEB liability in the year ended June 30, 2019.

As of June 30, 2019, other amounts reported as deferred outfl ows of resources and deferred infl ows of resources related to RHIPA OPEB will be recognized in OPEB expense as follows (in thousands):Deferred

Outflows of Resources


Difference Between Expected and Actual Experience -$ (209)$ Change in Assumptions 29 - Net Difference Between Projected and Actual Earnings on OPEB Plan Investments - (47)Change in Proportion 6 (6) Difference Between Fund Contributions and Proportionate Share of Contributions 13 (16)

Total 48$ (278)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) (230) Contributions Subsequent to the MD 1,104 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 874$



Net Difference Between Projected and Actual Earnings on OPEB Plan Investments -$ (40)$ Change in Proportion - (19)Difference Between Fund Contributions and Proportionate Share of Contributions - (8)

Total -$ (67)$ Net Deferred Outflow/(Inflow) of Resources before Contributions Subsequent to the Measurement Date (MD) (67)Contributions Subsequent to the MD 1,076 Net Deferred Outflow/(Inflow) of Resources after Contributions Subsequent to the MD 1,009$

Year Ended June 30:2019 (46)$ 2020 (46) 2021 (46) 2022 (36) 2023 (31) Thereafter (25)

(230)$




ACTUARIAL METHODS AND ASSUMPTIONSActuarial valuations of an ongoing plan involve estimates of the value of projected benefi ts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Experience studies are performed as of December 31 of even numbered years.

The following key methods and assumptions were used to measure the total RHIA OPEB asset:

The following key methods and assumptions were used to measure the total RHIPA OPEB liability:

June 30, 2019 June 30, 2018Valuation Date December 31, 2016 December 31, 2015Measurement Date June 30, 2018 June 30, 2017Experience Study Report

2016, published July 2017

2014, published September 2015

Actuarial Cost MethodInflation RateLong-Term Expected Rate of Return



Retiree Healthcare Participation

Healthcare Cost Trend Rate

Disabled retirees:

Mortality rates are a percentage (70% for males, 95% for females) of the RP-2000 Sex-distinct, generational per scale BB,

disabled mortality table.

Actuarial Methods and Assumptions:RHIA

Entry Age Normal2.50 percent


Mortality

3.50 percent

Healthy retirees: 38%; Disabled retirees: 20%

Not applicable


RP-2000 Sex-distinct, generational per Scale BB, with collar adjustments and set-

backs as described in the valuation.

Active members:

Mortality rates are a percentage of healthy retiree rates that vary by group, as

described in the valuation.

June 30, 2019 June 30, 2018Valuation Date December 31, 2016 December 31, 2015Measurement Date

June 30, 2018 June 30, 2017

Experience Study Report

2016, published July 20172014, published September

2015

Actuarial Cost MethodInflation Rate

Long-Term Expected Rate of Return



Retiree Healthcare Participation

Healthy retirees: 38%; Disabled retirees: 20%

Varies by service at decrement, increasing from 10% at eight years of service to 38% at 30 years of service


Applied at beginning of plan year, starting with 6.5% for 2018, decreasing to 5.9% for 2019, increasing to 6.2% for 2029, and decreasing to an ultimate rate of 4.2% for 2093 and beyond.

Applied at beginning of plan year, starting with 6.3% for 2016, decreasing to 5.3% for 2019, increasing to 6.5% for 2029, and decreasing to an ultimate rate of 4.4% for 2094 and beyond.

RP-2014 Healthy annuitant, sex-distinct, gnerational with Unisex, Social Security Data Scale, with collar adjustments and setpbacks as described in the valuation

RP-2000 Sex-distinct, generational per Scale BB, with collar adjustments and set-backs as described in the valuation.

RP-2014 Healthy annuitant, sex-distinct, gnerational with Unisex, Social Security Data Scale, with collar adjustments and setpbacks as described in the valuation

Mortality rates are a percentage of healthy retiree rates that vary by group, as described in the valuation.

RP-2014 Healthy annuitant, sex-distinct, gnerational with Unisex, Social Security Data Scale

Mortality rates are a percentage (70% for males, 95% for females) of the RP-2000 Sex-distinct, generational per scale BB, disabled mortality table.

3.50 percent

Mortality


Active members:

Disabled retirees:

Actuarial Methods and Assumptions:RHIPA


Entry Age Normal

2.50 percent




DISCOUNT RATEThe discount rate used to measure the total OPEB liability/(asset) at June 30, 2019 and 2018 was 7.20 and 7.50 percent, respectively. The projection of cash fl ows used to determine the discount rate assumed that contributions from con-tributing employers are made at the contractually required rates, as actuarially determined. Based on those assump-tions, the OPEB plans’ fi duciary net position was projected to be available to make all projected future benefi t payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments for the OPEB Plans was applied to all periods of projected benefi t payments to determine the total OPEB liability.

SENSITIVITY ANALYSISThe sensitivity analysis below shows the sensitivity of the university’s proportionate share of the net OPEB liability/(asset) calculated using the discount rate of 7.20 percent as of June 30, 2019 and 7.50 percent as of June 30, 2018, as well as what the net OPEB liability/(asset) would be if it were calculated using a discount rate that is one percent lower or one percent higher than the current rate (in thousands):

The sensitivity analysis below shows the sensitivity of the university’s proportionate share of the net OPEB liability/(asset) calculated using the current healthcare cost trend rates, as well as what the net OPEB liability/(asset) would be if it were calculated using healthcare trend rates that are one percentage point lower, or one percentage point higher than the current rates (in thousands):

ASSUMED ASSET ALLOCATION

LONG-TERM EXPECTED RATE OF RETURNTo develop an analytical basis for the selection of the long-term expected rate of return assumption, in July 2015 the PERS Board reviewed long-term assumptions developed by both Milliman’s capital market assumptions team and the OIC investment advisors. Each asset assumption is based on a consistent set of underlying assumptions, and includes adjustment for the infl ation assumption. These assumptions are not based on historical returns, but instead are based on a forward-looking capital market economic model. The table below shows a summary of long-term expected rate of return by asset class. For more information on the Plan’s portfolio, assumed asset allocation, and the long-term expected rate of return for each major asset class, calculated using both arithmetic and geometric means, see PERS’ audited fi nancial statements at: www.oregon.gov/pers/Pages/Financials/Actuarial-Financial-Information.aspx

Long-term expected rate of return by asset class is as follows:

Discount RateJune 30,

2019June 30,

2018June 30,

2019June 30,

2018

1% Decrease6.2%/6.5%

($1,529) $143 $3,163 $4,108


(2,626) (1,027) 2,821 3,718

1% Increase8.2%/8.5%

(3,560) (2,023) 2,430 3,357

RHIA RHIPA

June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

1% Decrease ($2,626) ($1,027) $2,284 $3,208Current Trend Rate (2,626) (1,027) 2,821 3,718

1% Increase (2,626) (1,027) 3,346 4,296

RHIA RHIPAHealthcare Cost Rate

Asset Class/ StrategyCash 0.00 % 3.00 % 0.00 %Debt Securities 15.00 25.00 20.00Public Equity 32.50 42.50 37.50Private Equity 13.50 21.50 17.50Real Estate 9.50 15.50 12.50Alternative Equity 0.00 12.50 12.50Opportunity Portfolio

0.00 3.00 0.00

Total 100 %

Low Range High Range OIC Target

Asset Class Target

Compound Annual Return

(Geometric)Core Fixed Income 8.00% 3.49%Short-Term Bonds 8.00 3.38Bank/Leveraged Loans 3.00 5.09High Yield Bonds 1.00 6.45Large/Mid Cap US Equities 15.75 6.30Small Cap US Equities 1.31 6.69Micro Cap US Equities 1.31 6.80Developed Foreign Equities

13.13 6.71

Emerging Market Equities 4.13 7.45Non-US Small Cap Equities 1.88 7.01Private Equity 17.50 7.82Real Estate (Property) 10.00 5.51Real Estate (REITS) 2.50 6.37Hedge Fund of Funds - Diversified

2.50 4.09

Hedge Fund - Event-driven 0.63 5.86Timber 1.88 5.62Farmland 1.88 6.15Infrastructure 3.75 6.60Commodities 1.88 3.84

Assumed Inflation – Mean 2.50%




DEPLETION DATE PROJECTIONGASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefi ts Other Than Pensions, generally requires that a blended discount rate be used to measure the Total OPEB Liability (the Actuarial Accrued Liability calcu-lated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fidu-ciary Net Position (fair market value of assets) is projected to cover benefi t payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefi t payments and administra-tive expenses. Determining the discount rate under GASB Statement No. 75 will often require that the actuary perform complex projections of future benefi t payments and asset values. GASB Statement No 75 (paragraph 39) does allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contem-plate a specifi c method for making an alternative evaluation of suffi ciency; it is left to professional judgment.

The following circumstances justify an alternative evaluation of suffi ciency for Oregon PERS:

• Oregon PERS has a formal written policy to calculate an actuarially determined contribution (ADC), which is articulated in the actuarial valuation report.

• The ADC is based on a closed, layered amortization period, which means that payment of the full ADC each year will bring the plan to a 100 percent funded position by the end of the amortization period if future experience follows assumptions.

• GASB Statement No. 75 specifi es that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not refl ect any adverse future experience that might impact the plan’s funded position.

Based on these circumstances, it is the independent actu-ary’s opinion that the detailed depletion date projections outlined in GASB Statement No. 75 would clearly indicate that the fi duciary net position is always projected to be suf-fi cient to cover benefi t payments and administrative expens-es. As such, the long-term expected rate of return was used to discount the liability.

B. Public Employees’ Benefi t Board (PEBB)PLAN DESCRIPTIONOSU participates in a defi ned benefi t post-employment healthcare plan administered by the Public Employees Ben-efi t Board (PEBB). This plan off ers healthcare assistance to eligible retired employees and their benefi ciaries. Chapter 243 of the Oregon Revised Statutes (ORS) gives PEBB the

authority to establish and amend the benefi t provisions of the PEBB Plan. The PEBB Plan is considered a cost-sharing multiple-employer plan for fi nancial reporting purposes and has no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. PEBB does not issue a separate, publicly available fi nancial report.

The PEBB Plan allows qualifying retired employees to continue their “active” health insurance coverage on a self-pay basis until they are eligible for Medicare. Participating retirees pay their own monthly premiums. However, the premium amount is based on a blended rate that is determined by pooling the qualifying retirees with active employees, thus, creating an “implicit rate subsidy.”

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESEmployers participating in PEBB are required to report OPEB information in their fi nancial statements for fi scal periods beginning on or after June 15, 2017, in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefi ts Other Than Pensions.

The requirements of this Statement incorporate provisions intended to refl ect the eff ects of transactions and events related to OPEB in the measurement of employer liabilities and recognition of OPEB expense and deferred outfl ows of resources and deferred infl ows of resources.

PROPORTIONATE SHARE ALLOCATION METHODOLOGYThe basis for the employer’s proportion is determined by comparing the employer’s actual contributions made during the fi scal year with the total actual contributions made by all employers in the fi scal year.

TOTAL OPEB LIABILITYAt June 30, 2019, the university reported a liability of $16,081,954 for its proportionate share of the total OPEB liability. The total OPEB liability as of June 30, 2019 was measured as of June 30, 2019, and was determined by an actuarial valuation as of July 1, 2017. At June 30, 2018, the university reported a liability of $15,242,440 for its proportionate share of the total OPEB liability. The total OPEB liability as of June 30, 2018 was measured as of June 30, 2018, and was determined by an actuarial valuation as of July 1, 2017. PEBB does not provide OSU an audited proportionate share as a separate employer; the university is allocated a proportionate share of PEBB participating employers. DAS calculated OSU’s proportionate share of all participating employers internally based on actual contributions by OSU as compared to the total for participating employers. The Oregon Audits Division reviewed this internal calculation. At June 30, 2019 and 2018, OSU’s proportion was 9.98 and 10.26 percent, respectively, of participating employers.

For the year ended June 30, 2019 and 2018, OSU recorded total PEBB OPEB related expense of $1,488,767 and




$1,479,708, respectively, due to the changes to the total OPEB liability and deferred infl ows, and amortization of previously deferred amounts.

DEFERRED ITEMSMost deferred items are calculated at the system-wide level and are allocated to employers based on their proportionate share. However, changes in employer proportion is calcu-lated at the employer level. For the measurement period ended June 30, 2019 and 2018, there were:

• Changes in assumptions


Changes in assumption and changes in employer proportion are amortized over the closed period equal to the average expected remaining service lives of all covered active and inactive participants. Employers are required to recognize OPEB expense based on the balance of the closed period “layers” attributable to each measurement period. The weighted average expected remaining service lives, assum-ing zero years for all retirees, is determined as of the begin-ning of each measurement period. The average remaining service lives determined as of the beginning of the measure-ment period for measurement periods ending June 30, 2019 and 2018 was 8.2 years.


At June 30, 2019, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to PEBB OPEB from the following sources (in thousands):

At June 30, 2018, OSU reported deferred outfl ows of resources and deferred infl ows of resources related to PEBB OPEB from the following sources (in thousands):

As of June 30, 2018, other amounts reported as deferred outfl ows of resources and deferred infl ows of resources related to PEBB OPEB will be recognized in OPEB expense as follows (in thousands):

ACTUARIAL METHODS AND ASSUMPTIONSActuarial valuations of an ongoing plan involve estimates of the value of projected benefi ts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future.

The following key methods and assumptions were used to measure the total OPEB liability:

DISCOUNT RATEUnfunded plans must use a discount rate that refl ects a 20-year tax-exempt municipal bond yield or index rate. TheBond Buyer 20-Year General Obligation Bond Index wasused to determine the discount rate for the OPEB liability.The discount rate in eff ect for the June 30, 2019 and 2018reporting date was 3.50 and 3.87 percent, respectively.

SENSITIVITY ANALYSISThe sensitivity analysis below shows the sensitivity of the university’s proportionate share of the total OPEB liability calculated using the discount rate of 3.50 percent as of June 30, 2019 and 3.87 percent as of June 30, 2018, as well as



Change in Assumptions 435$ (278)$ Change in Proportion 121 (376)

Total 556 (654) Net Deferred Outflow/(Inflow) of Resources (98)$



Change in Assumptions -$ (332)$ Change in Proportion 140 -

Total 140 (332) Net Deferred Outflow/(Inflow) of Resources (192)$

Year Ended June 30:2019 (17)$ 2020 (17) 2021 (17) 2022 (17) 2023 (17) Thereafter (13)

(98)$

June 30, 2019 June 30, 2018Valuation Date July 1, 2017 July 1, 2017Measurement Date June 30, 2019 June 30, 2018

Actuarial Cost MethodInflation RateDiscount Rate 3.50 percent 3.87 percentProjected Salary IncreasesWithdrawal, retirement, and mortality rates

Actuarial Methods and Assumptions:



Election and lapse rates

Medical and vision cost increases:

Dental cost changes:

Entry Age Normal2.50 percent

3.50 percent

December 31, 2016 Oregon PERS valuation

30% of eligible employees60% spouse coverage for males, 35% for females

7% annual lapse rate

0.80% in the first year; 5.10% in the second year; 5.30% in the third year; varying from 6.20% to

4.20% over the remainder of the projection period

decrease 1.10% in the first year; increase 3.10% in the second year; increase 4.00% per year thereafter




what the net OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher than the current rate as of June 30, 2019 and 2018 (in thousands):

The sensitivity analysis below shows the sensitivity of the university’s proportionate share of the total OPEB liability calculated using the current healthcare cost trend rates, as well as what the net OPEB liability would be if it were calculated using healthcare trend rates that are one percent-age point lower, or one percentage point higher than the current rates as of June 30, 2019 and 2018 (in thousands):

18. RISK FINANCINGOSU is a member of the Public Universities Risk Management and Insurance Trust (PURMIT). PURMIT is a separate legal entity that provides risk management and insurance support to its member universities (Member). PURMIT is governed by a Board of Trustees comprised of one representative from each Member. PURMIT carries out its mission through a combination of risk transfer and risk retention. PURMIT operates a self-insurance program for property and casualty lines under which each Member may select their own deductible. PURMIT also procures insurance and excess insurance, purchases specialty insurance lines, and provides administrative and operational services.

PURMIT is funded by annual Member assessments that are based on exposure, premium costs, expected claims, and operational costs, which are outlined in a Risk Allocation Model, and based on sound actuarial analysis.

As a Member of PURMIT, OSU transfers the following insur-able risks to PURMIT and insurance companies:

• Real property loss for university owned buildings,equipment, automobiles and other types of property

• Tort liability claims brought against OSU, its offi cers,employees or agents

• Workers’ Compensation and Employer’s Liability

• Crime, Fiduciary and Network Security

• Specialty lines of coverage for marine, medical practicums,intercollegiate athletics, international travel, camps andclinics, day care, aviation exposures, and other items

OSU has a deductible of $100,000 per occurrence/claim to PURMIT on property and casualty claims, and various deductibles on other insurance and specialty insurance lines. Annually, OSU sets aside pre-loss funding in advance to pay for the claims that are expected for that policy year. The amount of settlements has not exceeded insurance coverage since PURMIT was established in June of 2014.

19. COMMITMENTS AND CONTINGENTLIABILITIES

Outstanding commitments on partially completed, and planned but not initiated construction projects totaled ap-proximately $357,693,076 at June 30, 2019. These commit-ments will be primarily funded from gifts and grants, bond proceeds, and other OSU funds.

During fi scal year 2019, the OSU Board of Trustees approved $9 million in funding to begin work on the reclamation project for the 46-acre pumice mine site that OSU purchased in fi scal year 2018. The reclamation project will be completed under the same contracted construction development project for the site development of the Cascades Campus academic building 2, which received board approval for funding in the amount of $4.5 million, for a total project cost of $13.5 million. Funding for both project sites will come from State of Oregon XI-Q bonds, with an anticipated completion date sometime in the summer of 2020.

In conjunction with capital construction projects at the Corvallis campus, OSU has signed a memorandum of understanding with the city of Corvallis that requires the university to submit a corridor improvement plan for frontage improvement along Washington Way between 35th Street and 26th Street. The university is required to submit the corridor improvement plan to the city for review and approval no later than December 31, 2019. Once the plan is approved by the city, OSU will be required to provide security pursuant to a bond, letter of credit or other fi nancial assurance to cover 135% of the anticipated $22 million cost of the frontage improvement project. The frontage improvement project must be completed by December 31, 2022.

OSU is contingently liable in connection with certain other claims and contracts, including those currently in litigation, arising in the normal course of its activities. Management is of the opinion that the outcome of such matters will not have a material eff ect on the fi nancial statements.

OSU participates in certain federal grant programs. These programs are subject to fi nancial and compliance audits by the grantor or its representative. Such audits could lead to requests for reimbursement to the grantor for expenditures

Discount Rate June 30, 2019 June 30, 20181% Decrease2.50%/2.87%

$17,499 $16,587


16,082 15,242

1% Increase4.50%/4.87%

14,778 14,009

Healthcare RateJune 30,

2019June 30,

20181% Decrease $14,012 $13,430

Current Trend Rate 16,082 15,242 1% Increase 18,568 17,406




disallowed under terms of the grant. Management believes that disallowances, if any, will not have a material eff ect on the fi nancial statements.

Unemployment compensation claims are administered by the Oregon Employment Division pursuant to ORS 657. OSU reimburses the Oregon Employment Division on a quarterly basis for actual benefi ts paid. Each year resources are bud-geted to pay current charges. The amount of future benefi t payments to claimants and the resulting liability to OSU can-not be reasonably determined at June 30, 2019.

20. SUBSEQUENT EVENTSOSU management has reviewed events and transactions that occurred subsequent to the Statement of Net Position date of June 30, 2019, and found none that required adjust-ment or disclosure in the fi nancial statements.

21. UNIVERSITY FOUNDATIONSThe university’s two related foundations are the OSU Foundation (OSUF) and the Agricultural Research Foundation (ARF). The foundations were established to provide assistance in fund raising, public outreach and other support for the mission of OSU. The OSUF was incorporated in 1947 to encourage, receive, and administer gifts and bequests for the support of the university and is responsible for all fundraising of the university as well as management of the majority of the university’s endowments. The ARF was incorporated in 1934 to encourage and facilitate research in all branches of agriculture and related fi elds for the benefi t of Oregon’s agricultural industries. Each foundation is a legally separate, tax-exempt entity with an independent governing board. Although OSU does not control the timing or amount of receipts from the foundations or income thereon, the majority of resources that each foundation holds and invests are restricted to the activities of the university by the donors. Because these restricted resources held by each foundation can only be used by, or for the benefi t of the university, the foundations are considered

component units of OSU and are discretely presented in the fi nancial statements. The fi nancial activity is reported for the years ended June 30, 2019 and 2018. Both OSU affi liated foundations are audited annually and received unmodifi ed audit opinions.

During the years ended June 30, 2019 and 2018, gifts of $78,709,385 and $69,082,191, respectively, were trans-ferred from the foundations to OSU.

The OSUF and ARF implemented FASB Accounting Stan-dards Update (ASU) No. 2016-14, Presentation of Financial Statements of Not-for-Profi t Entities, for fi scal year ending June 30, 2019. As a result, the foundations now present two classes of net assets in their consolidated fi nancial state-ments, instead of three. The new standard also required the presentation of underwater endowment funds to be moved to net assets with donor restrictions. The impact of this change on net assets aff ected only OSUF and can be seen in the following table:

Please see the combining fi nancial statements for the OSU component units on the following pages.

Complete fi nancial statements for the foundations may be obtained by writing to the following:

• Oregon State University Foundation, 4238 SW Research Way,Corvallis, OR 97333

• Agricultural Research Foundation, 1600 SW Western Blvd,Suite 320, Corvallis, OR 97333

June 30, 2018

Unrestricted Net Assets, as Previously Reported 15,574$ Underwater Endowment Funds 11,881

Net Assets Without Donor Restrictions, as Adjusted 27,455

Temporarily Restricted Net Assets, as Previously Reported 297,781 Permanently Restricted Net Assets, as Previously Reported 430,649

Total Restricted Net Assets, as Previously Reported 728,430 Underwater Endowment Funds (11,881)

Net Assets With Donor Restrictions, as Adjusted 716,549

Total Net Assets, as Adjusted 744,004$




Component UnitsCombining Financial Statements Oregon

State Agricultural TotalStatements of Financial Position University Research ComponentAs of June 30, 2019 Foundation Foundation Units

ASSETSCash and Cash Equivalents 3,458$ 1,988$ 5,446$ Investments 701,025 27,051 728,076 Contributions, Pledges and Grants Receivable, Net 37,722 3,753 41,475 Assets Held-For-Sale 7,150 - 7,150 Assets Held Under Split-Interest Agreements 54,205 - 54,205 Charitable Trusts Held Outside the Foundation 15,021 - 15,021 Prepaid Expenses and Other Assets 3,232 226 3,458 Property and Equipment, Net 28,163 11 28,174 Total Assets 849,976$ 33,029$ 883,005$

LIABILITIESAccounts Payable and Accrued Liabilities 9,401$ 30$ 9,431$ Endowment Assets Held for OSU 48,272 - 48,272 Accounts Payable to the University - 5,204 5,204 Obligations to Beneficiaries of Split-Interest Agreements 24,910 - 24,910 Other Liabilities 55 11,090 11,145 Long-Term Liabilities - 3 3 Total Liabilities 82,638 16,327 98,965

NET ASSETSWithout Donor Restrictions 33,309 5,609 38,918 With Donor Restrictions 734,029 11,093 745,122 Total Net Assets 767,338 16,702 784,040

TOTAL LIABILITIES AND NET ASSETS 849,976$ 33,029$ 883,005$

(in thousands)





State Agricultural TotalStatements of Activities University Research ComponentFor the Year Ended June 30, 2019 Foundation Foundation Units


Grants, Bequests and Gifts 575$ 6,138$ 6,713$ Investment Income, Net 6,335 1,816 8,151 Net Assets Released From Restrictions and Other Transfers 86,125 2,305 88,430 Other Revenues 22,241 - 22,241

Total Revenues 115,276 10,259 125,535

EXPENSESUniversity Support 77,014 8,597 85,611 Management and General 12,677 372 13,049 Development 19,731 - 19,731

Total Expenses 109,422 8,969 118,391 Increase In Net Assets Held Without Donor Restrictions 5,854 1,290 7,144

Beginning Balance, Net Assets Held Without Donor Restrictions 27,455 4,319 31,774 Ending Balance, Net Assets Held Without Donor Restrictions 33,309$ 5,609$ 38,918$


Grants, Bequests and Gifts 76,168$ 2,721$ 78,889$ Investment Income, Net 23,705 52 23,757 Change in Value of Life Income Agreements 541 - 541 Other Revenues 3,191 - 3,191 Net Assets Released From Restrictions and Other Transfers (86,125) (2,305) (88,430)

Increase In Net Assets Held With Donor Restrictions 17,480 468 17,948

Beginning Balance, Net Assets Held With Donor Restrictions 716,549 10,625 727,174 Ending Balance, Net Assets Held With Donor Restrictions 734,029$ 11,093$ 745,122$

Beginning Balance, Total Net Assets 744,004$ 14,944$ 758,948$ Increase In Total Net Assets 23,334 1,758 25,092 Ending Balance, Total Net Assets 767,338$ 16,702$ 784,040$

(in thousands)





State Agricultural TotalStatements of Financial Position University Research ComponentAs of June 30, 2018 Foundation Foundation Units

ASSETSCash and Cash Equivalents 25,579$ 610$ 26,189$ Investments 667,737 25,205 692,942 Contributions, Pledges and Grants Receivable, Net 43,497 3,484 46,981 Assets Held-For-Sale 5,559 - 5,559 Assets Held Under Split-Interest Agreements 47,684 - 47,684Charitable Trusts Held Outside the Foundation 15,310 - 15,310Prepaid Expenses and Other Assets 3,525 178 3,703 Property and Equipment, Net 13,152 16 13,168Total Assets 822,043$ 29,493$ 851,536$

LIABILITIESAccounts Payable and Accrued Liabilities 8,273$ 39$ 8,312$ Endowment Assets Held for OSU 47,976 - 47,976Accounts Payable to the University - 4,944 4,944 Obligations to Beneficiaries of Split-Interest Agreements 21,514 - 21,514Deposits and Unearned Revenue 276 9,562 9,838 Long-Term Liabilities - 4 4 Total Liabilities 78,039 14,549 92,588

NET ASSETSWithout Donor Restrictions 27,455 4,319 31,774 With Donor Restrictions 716,549 10,625 727,174 Total Net Assets 744,004 14,944 758,948

TOTAL LIABILITIES AND NET ASSETS 822,043$ 29,493$ 851,536$

(in thousands)





State Agricultural TotalStatements of Activities University Research ComponentFor the Year Ended June 30, 2018 Foundation Foundation Units


Grants, Bequests and Gifts 12,657$ 5,822$ 18,479$ Investment Income, Net 4,650 709 5,359 Net Assets Released From Restrictions and Other Transfers 75,146 3,012 78,158 Other Revenues 21,487 - 21,487

Total Revenues 113,940 9,543 123,483

EXPENSESUniversity Support 72,970 9,086 82,056 Management and General 13,032 359 13,391 Development 18,176 - 18,176

Total Expenses 104,178 9,445 113,623 Increase In Net Assets Held Without Donor Restrictions 9,762 98 9,860

Beginning Balance, Net Assets Held Without Donor Restrictions 17,693 4,221 21,914 Ending Balance, Net Assets Held Without Donor Restrictions 27,455$ 4,319$ 31,774$


Grants, Bequests and Gifts 85,760$ 2,766$ 88,526$ Investment Income, Net 39,074 58 39,132 Change in Value of Life Income Agreements 2,485 - 2,485 Other Revenues 3,568 - 3,568 Net Assets Released From Restrictions and Other Transfers (75,146) (3,012) (78,158)

Increase (Decrease) In Net Assets Held With Donor Restrictions 55,741 (188) 55,553

Beginning Balance, Net Assets Held With Donor Restrictions 660,808 10,813 671,621 Ending Balance, Net Assets Held With Donor Restrictions 716,549$ 10,625$ 727,174$

Beginning Balance, Total Net Assets 678,501$ 15,034$ 693,535$ Increase (Decrease) In Total Net Assets 65,503 (90) 65,413 Ending Balance, Total Net Assets 744,004$ 14,944$ 758,948$

(in thousands)



Required Supplementary Information (dollars in thousands)

*These tables will eventually contain 10 years of data. Only the data presented above is available at this time.

For Fiscal Years Ended June 30, 2019 2018 2017 2016 2015 2014 2013 2012

Contractually Required Contribution1 28,059$ 27,936$ 19,571$ 19,078$ 15,945$ 15,100$ 13,760$ 12,666$ Contributions in Relation to the Contractually Required Contribution 28,059 27,936 19,571 19,078 15,945 15,100 13,760 12,666

Contribution Deficiency/(Excess) -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll 267,033$ 258,277$ 244,265$ 228,327$ 218,835$ 202,058$ 189,839$ 177,054$

Contributions as a Percentage of Covered Payroll 10.5% 10.8% 8.0% 8.4% 7.3% 7.5% 7.2% 7.2%

1For Actuarial Assumptions and Methods, see table in Note 15

As of the Measurement Date June 30, 2018 2017 2016 2015 2014 2013University's Allocation of the Net Pension Liability/(Asset) 2.00% 2.18% 2.15% 2.00% 1.80% 1.80%

University's Proportionate Share of the Net Pension Liability/(Asset) 302,317$ 293,882$ 322,538$ 114,746$ (40,834)$ 91,930$

University's Covered Payroll 258,277$ 244,265$ 228,327$ 218,835$ 202,058$ 189,839$

117.05% 120.31% 141.26% 52.43% 20.21% 48.43%

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability/(Asset) 82.07% 83.12% 80.53% 91.88% 103.59% 91.97%

SCHEDULE OF UNIVERSITY CONTRIBUTIONS*Public Employees Retirement System

University's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Covered Payroll

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY/(ASSET)*

Public Employees Retirement System





For Fiscal Years Ended June 30, 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010Actuarially Determined

Contributions11,205$ 1,171$ 1,172$ 1,104$ 1,170$ 1,091$ 1,020$ 963$ 367$ 362$

Contributions in Relation to the Actuarially Determined Contributions 1,205 1,171 1,172 1,104 1,170 1,091 1,020 963 367 362

Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll 266,994$ 258,239$ 244,227$ 228,283$ 217,824$ 201,446$ 184,769$ 173,316$ 146,279$ 142,707$ Contributions as a Percentage of Covered Payroll 0.45% 0.45% 0.48% 0.48% 0.54% 0.54% 0.55% 0.56% 0.25% 0.25%


As of the Measurement Date June 30, 2018 2017 2016University's Allocation of the Net RHIA OPEB Liability/(Asset) 2.35% 2.46% 2.36%

University's Proportionate Share of the Net RHIA OPEB Liability/(Asset) (2,626)$ (1,027)$ 641$

University's Covered Payroll 258,239$ 244,227$ 228,283$

1.02% 0.42% 0.28%

Plan Fiduciary Net Position as a Percentage of the Total RHIA OPEB Liability/(Asset) 123.99% 108.88% 94.15%

SCHEDULE OF UNIVERSITY PERS RHIA OPEB EMPLOYER CONTRIBUTION

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE NET PERS RHIA OPEB LIABILITY/(ASSET)*

University's Proportionate Share of the Net RHIA OPEB Liability/(Asset) as a Percentage of Covered Payroll





For Fiscal Years Ended June 30, 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010Actuarially Determined

Contributions11,104$ 1,076$ 937$ 886$ 508$ 475$ 257$ 244$ 82$ 83$

Contributions in Relation to the Actuarially Determined Contributions 1,104 1,076 937 886 508 475 257 244 82 83

Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll 266,994$ 258,239$ 244,227$ 228,283$ 217,824$ 201,446$ 184,769$ 173,316$ 146,279$ 142,707$ Contributions as a Percentage of Covered Payroll 0.41% 0.42% 0.38% 0.39% 0.23% 0.24% 0.14% 0.14% 0.06% 0.06%


As of the Measurement Date June 30, 2018 2017 2016University's Allocation of the Net RHIPA OPEB Liability 7.98% 7.97% 8.01%

University's Proportionate Share of the Net RHIPA OPEB Liability 2,820$ 3,718$ 4,299$


1.09% 1.52% 1.88%

Plan Fiduciary Net Position as a Percentage of the Total RHIPA OPEB Liability 49.79% 34.25% 21.87%

SCHEDULE OF UNIVERSITY PERS RHIPA OPEB EMPLOYER CONTRIBUTION

University's Proportionate Share of the Net RHIPA OPEB Liability as a Percentage of Covered Payroll

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE NET PERS RHIPA OPEB LIABILITY*




*This table will eventually contain 10 years of data. Only the data presented above is available at this time.

As of June 30, 2019 2018 2017University's Allocation of the Total OPEB Liability 16,082$ 15,242$ 14,696$

University's Proportionate Share of the Total OPEB Liability 9.98% 10.26% 10.15%


4.00% 4.13% 3.78%

Total OPEB Liability as a % of Total Covered Payroll 4.31% 4.42% 4.45%

University's Proportionate Share of the Total OPEB Liability as a Percentage of Covered Payroll

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE TOTAL PEBB OPEB LIABILITY*



[THIS PAGE INTENTIONALLY LEFT BLANK]



For information about the fi nancial data included in this report, contact:

Michael J. Green

Vice President for Finance and Administration

Oregon State University

640 Kerr Administration Building

Corvallis, OR 97331

541-737-2092


Oregon State Universityoregonstate.edu

Offi ce of the Vice President for Finance and Administration

640 Kerr Administration BuildingCorvallis, OR 97331-2156© 2019 Oregon State University


Members of the Board of Trustees Oregon State University Corvallis, Oregon

We have audited the financial statements of the business-type activities and the aggregate discretely presented component units of Oregon State University (the University) as of and for the years ended June 30, 2019 and 2018, and have issued our report thereon dated October 31, 2019. Our report includes a reference to other auditors who audited the financial statements of the Oregon State University Foundation and the Agricultural Research Foundation, which comprise the aggregate discretely presented component units, as described in our report on the University’s financial statements. This report does not include the results of the other auditors’ testing or other matters that are reported on separately by those auditors. The financial statements of the aggregate discretely presented component units were not audited in accordance with Government Auditing Standards.

We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings

Qualitative aspects of accounting practices

Accounting policies

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Oregon State University are described in Note 1 to the financial statements.

The University adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Asset Retirement Obligations in fiscal year 2019. The adoption and implementation of this statement resulted in a restatement of beginning net position as of July 1, 2017.

We noted no transactions entered into by the University during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:


Members of the Board of Trustees Oregon State University Page 2

Management’s estimate of the allowance for uncollectible receivables is based on historicalcollection rates.

Capital assets are depreciated using the straight-line method over the estimated useful lives ofthe assets. Estimated useful lives range from five to 50 years.

Perkins Program Loan Liability - Congress did not renew the Perkins Loan Program afterSeptember 30, 2017. As a result, no loan disbursements to students were permitted afterJune 30, 2018. The lack of renewal also means that the federal portion of the revolving loanprogram must be repaid to the Department of Education (ED) as by students repay loans to theschool. As such, the Perkins Program Loan Liability is based upon the percentage of the federalcapital contribution (reported annually on the FISAP) applied to the Perkins Loans Fund assetbalance. This is the University’s best estimate of the amount of funds that will be repaid to theED as loans are collected from student.

Compensated absences and related personnel expenses are recognized based on estimatedbalances due to employees for vacation and compensated leave. The limitations on suchpayments are defined by the rules associated with the personnel systems at the University.

Summer session unearned tuition revenue is the estimate of the number of days of summercourses that were incurred subsequent to fiscal year end for which tuition was charged andcollected prior to fiscal year end.

The net pension liability of the Oregon Public Employees Retirement System (PERS) isrecognized based on actuarially determined estimates made by PERS’ actuaries and acceptedby its Retirement Board. The University is allocated a percentage of this and associatedestimates as determined by PERS and the Oregon Department of Administrative Services.

The net other postemployment benefits (OPEB) asset and liability of the Oregon PublicEmployees Retirement System (PERS) are recognized based on actuarially determinedestimates made by PERS’ actuaries and accepted by its Retirement Board. The University isallocated a percentage of this and associated estimates as determined by PERS and theOregon Department of Administrative Services.

The total OPEB liability of the Oregon Public Employees’ Benefit Board (PEBB) is recognizedbased on actuarially determined estimates made by PEBB’s actuaries and accepted by itsboard. The University is allocated a percentage of this and associated estimates as determinedby PEBB and the Oregon Department of Administrative Services.

The Asset Retirement Obligation is the estimate of costs to perform future asset retirementactivities for two tangible capital assets.

We evaluated the factors and assumptions used to develop the estimates in determining they are reasonable in relation to the financial statements taken as a whole.



Financial statement disclosures

The financial statement disclosures are neutral, consistent, and clear.

Difficulties encountered in performing the audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Uncorrected misstatement

Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management did not identify and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements

Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.

Disagreements with management

For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Management representations

We have requested certain representations from management that are included in the attached management representation letter dated October 31, 2019.

Management consultations with other independent accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Significant issues discussed with management prior to engagement

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.

Audits of group financial statements

We noted no matters related to the group audit that we consider to be significant to the responsibilities of those charged with governance of the group.

Quality of component auditor’s work

There were no instances in which our evaluation of the work of a component auditor gave rise to a concern about the quality of that auditor’s work.



Other information in documents containing audited financial statements

With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

The Message from the President accompanying the financial statements, which is the responsibility of management, was prepared for purposes of additional analysis and is not a required part of the financial statements. Such information was not subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we did not express an opinion or provide any assurance on it.

With respect to the schedule of expenditures of federal awards (SEFA) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the SEFA to determine that the SEFA complies with the requirements of the Uniform Guidance, the method of preparing it has not changed from the prior period or the reasons for such changes, and the SEFA is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the SEFA to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated October 31, 2019.

Our auditors’ opinion, the audited financial statements, and the notes to financial statements should only be used in their entirety. Inclusion of the audited financial statements in a document you prepare, such as an annual report, should be done only with our prior approval and review of the document.

* * *

This communication is intended solely for the information and use of the Members of the Board of Trustees and management of Oregon State University and is not intended to be, and should not be, used by anyone other than these specified parties.

a CliftonLarsonAllen LLP

Denver, Colorado October 31, 2019











OREGON STATE UNIVERSITY

SINGLE AUDIT REPORT

FOR THE YEAR ENDED JUNE 30, 2019


OREGON STATE UNIVERSITY SINGLE AUDIT REPORT TABLE OF CONTENTS


INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 1

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 47

SCHEDULE OF FINDINGS AND QUESTIONED COSTS 48


(1)

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Members of the Board of Trustees Oregon State University Corvallis, Oregon

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities and the aggregate discretely presented component units of Oregon State University (University), a component unit of the State of Oregon, as of and for the years ended June 30, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the University’s basic financial statements, and have issued our report thereon dated October 31, 2019. Our report includes a reference to other auditors who audited the financial statements of the Oregon State University Foundation and the Agricultural Research Foundation, which comprise the aggregate discretely presented component units, as described in our report on the University’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The financial statements of the aggregate discretely presented component units were not audited in accordance with Government Auditing Standards.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the University's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the University’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.


Members of the Board Oregon State University

(2)

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the University's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the University’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.




(3)

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND

REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE

Members of the Board of Trustees Oregon State University Corvallis, Oregon Report on Compliance for Each Major Federal Program We have audited Oregon State University’s (the University) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the University’s major federal program for the year ended June 30, 2019. The University’s major federal program is identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditors’ Responsibility

Our responsibility is to express an opinion on compliance for the University’s major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the University’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the University’s compliance.


Members of the Board of Trustees Oregon State University

(4)

Opinion on Each Major Federal Program

In our opinion, Oregon State University complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2019.

Other Matters

The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2019-001. Our opinion on the major federal program is not modified with respect to this matter.

The University’s response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The University’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control over Compliance Management of the University is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the University’s internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a certain deficiency in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as item 2019-001 which we consider to be a significant deficiency.


Members of the Board of Trustees Oregon State University

(5)

The University’s response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The University’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the business-type activities and the aggregate discretely presented component units of the University as of and for the years ended June 30, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the University’s basic financial statements. We issued our report thereon dated October 31, 2019, which contained unmodified opinions on those financial statements. Our report includes a reference to other auditors who audited the financial statements of the Oregon State University Foundation and the Agricultural Research Foundation, which comprise the aggregate discretely presented component units, as described in our report on the University’s financial statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.




Cluster Federal Grantor Program TitleCFDA

Number Pass-Through Entity

Pass-Through Identifying

Number

Passed through to

Subrecipients Total

Expenditures Student Financial Aid

Department of Education Federal Direct Student Loans 84.268 137,888,710$ Federal Pell Grant Program 84.063 29,386,206 Federal Perkins Loan Program Federal Capital Contributions 84.038 27,424,537 Federal Supplemental Educational Opportunity Grants 84.007 921,788 Federal Work-Study Program 84.033 1,159,135

Total Student Financial Aid Cluster 196,780,376

Research and Development

Agency for International DevelopmentAquaculture and Fisheries Collaborative Research Support Program 98.000 817,193 2,377,141

Cooperative Development Program (CDP) 98.002Arizona State University 15-652 118,393

Cooperative Development Program (CDP) 98.002Arizona State University 17-242 20,535

Cooperative Development Program (CDP) 98.002Arizona State University ASUB00000016 81,742

USAID Foreign Assistance for Programs Overseas 98.001 (965) Agency for International Development Total 817,193 2,596,846

Department of Agriculture 1890 Institution Capacity Building Grants 10.216Kentucky State University 2018-1959 22,862

1994 Institutions Research Program 10.227Northwest Indian College 28754 1,447

1994 Institutions Research Program 10.227Northwest Indian College 28755 4,388

1994 Institutions Research Program 10.227Northwest Indian College NWIC-28757-01 11,775

A Climate Change Assessment of Vegetation, Fire, and Ecosystem Services for Tribal lands in the Pacific Northwest 10.000 3,968 A Field Test of Local Adaptation in Bluebunch Wheatgrass (Pseudoroegneria spicata) 10.000 10,462 A Headwater Stream Multi-Species Inventory of Fish and Amphibians Using Environmental DNA 10.000 94,365 A machine vision system for forest harvesting equipment: Individual tree detection, measurement, and localization using stereoscopy an digital image processing 10.000 50,523 Adapting to Revenue Changes Due to Declines in Timber Harvest: A Case Study in Oregon 10.000 28,723 Agricultural Research Basic and Applied Research 10.001 University of Nebraska 25-6235-0275-004 2,054

Agricultural Research Basic and Applied Research 10.001USDA - Ag Research Service 59-5082-6-001 82,234

Agricultural Research Basic and Applied Research 10.001Washington State University 132740_G003799 3,477

Agricultural Research Basic and Applied Research 10.001 168,268 4,662,120

Oregon State UniversitySchedule of Expenditures of Federal Awards

For the Year Ended June 30, 2019

(6)





Number

Passed through to

Subrecipients Total

Expenditures

Agriculture and Food Research Initiative (AFRI) 10.310Colorado State University G-91600-7 141,048

Agriculture and Food Research Initiative (AFRI) 10.310Michigan State University RC105883OR 33,049

Agriculture and Food Research Initiative (AFRI) 10.310

North Carolina Agricultural and Technical State University 240846A 4,368

Agriculture and Food Research Initiative (AFRI) 10.310North Carolina State University 2015-0097-09 2,022

Agriculture and Food Research Initiative (AFRI) 10.310Texas A & M University 06-M1702385 77,852

Agriculture and Food Research Initiative (AFRI) 10.310 University of ArkansasUA AES 0402-82678-02 18,861

Agriculture and Food Research Initiative (AFRI) 10.310University of California, Davis 201503531-02 (1)

Agriculture and Food Research Initiative (AFRI) 10.310University of California, Merced 22488OS 88,615

Agriculture and Food Research Initiative (AFRI) 10.310 University of Delaware 25866 (13)

Agriculture and Food Research Initiative (AFRI) 10.310 University of FloridaUFSP00011383 Project 00089533 (3,384)

Agriculture and Food Research Initiative (AFRI) 10.310 University of IdahoAN0746-SB-846463 62,721

Agriculture and Food Research Initiative (AFRI) 10.310 University of IdahoBDK640-SB-001 / PO P0045056 10,228

Agriculture and Food Research Initiative (AFRI) 10.310 University of IdahoBJKL03-SB-001 / PO PA031110 (1,310) (1,680)

Agriculture and Food Research Initiative (AFRI) 10.310 University of Idaho BJKP55-SB-001 38,810

Agriculture and Food Research Initiative (AFRI) 10.310 University of IdahoBJKQ80-SB-002 P0053120 119,798

Agriculture and Food Research Initiative (AFRI) 10.310 University of Maryland Z5775004 188,255

Agriculture and Food Research Initiative (AFRI) 10.310 University of Vermont28069 SUB51557 Oregon (2,041)

Agriculture and Food Research Initiative (AFRI) 10.310University of Washington

UWSC 6362 / BPO 6217 (729759) 22

Agriculture and Food Research Initiative (AFRI) 10.310University of Wisconsin 583K284 (3,161)

Agriculture and Food Research Initiative (AFRI) 10.310Washington State University 122925 G003378 31,647

Agriculture and Food Research Initiative (AFRI) 10.310 445,943 3,078,581

Alfalfa and Forage Research Program 10.330Washington State University 131889-G003802 25,112

Amenity migration and public lands in the western U.S. 10.000 14,000 Amphibian Disease Ecology: Context Matters 10.000 6,355 An Analysis of Potential Water Use and Water Quality Impacts on Upper Coastal Plain Watersheds Under Intensive Woody Biofuel Management 10.000 6,618 Analysis of demographic rates of Northern Spotted Owls: a meta-analysis workshop. 10.000 (247)

(7)





Number

Passed through to

Subrecipients Total

Expenditures Analysis of Forest Service Inventory Data from Forested Habitats Across the USA 10.000 102,848 Analysis of private timber harvesting in NWFP region using remote-sensed data 10.000 5,850 Animal Health and Disease Research 10.207 40,736 Annual Variation in Abundance of Small Mammals on the H. J. Andrews Experimental Forest, Oregon 10.000 109,717 Approaches to assessing climate vulnerability of PNW Forest Ecosystems 10.000 31,611 Assessing and Addressing Effects of Forest Management on Pacific Marten Habitat in Western Forests 10.000 11,229 Assessing fuel management strategies to reduce landscape-level wildfire risk and transmission 10.000 (57) Biomass Research and Development Initiative Competitive Grants Program (BRDI) 10.312

The Ohio State University 60068526 345

Biotechnology Risk Assessment Research 10.219 181,799 Black stain root disease: An emerging threat to young Douglas-fir forests in the Oregon Coast range 10.000 7,945 Center for Intensive Planted-Forest Silviculture (CIPS) 10.000 25,770 Climate Change Effects on Coastal Riverscapes in Oregon 10.000 42,085 Climate Change Effects on Coastal Riverscapes in the Pacific Northwest 10.000 1,060 Collaboration for improving sample identification and developing genomic resources for western red cedar (Thuja plicata). 10.000 1,314 Collaboration for improving species identification and developing genomic resources for Cedrela odorata 10.000 24,869 Comparison and quality assessment of stream layer products 10.000 9,219 Continued Development of and Analysis with the Forestry Sector and Bioenergy Components of FASOM-GHG 10.000 17,161 17,161

Cooperative Forestry Assistance 10.664

U.S. Endowment for Forestry & Communities, Inc. P3-4 5,698

Cooperative Forestry Research 10.202 1,120,556 Critical Zone Science along the Pacific Coastal Margin 10.000 7,890 Crop Insurance 10.450 2,688,628

Crop Protection and Pest Management Competitive Grants Program 10.329

University of California Agriculture & Natural Resources SA14-2309-05 21,614


University of California, Davis SA14-2309-01 18,303


University of California, Davis SA18-4060-06 3,024

Demography of Northern Spotted Owls in Oregon and Washington 10.000 879,159

(8)





Number

Passed through to

Subrecipients Total

Expenditures Demonstrating novel soil management and plant nutrition regimes to protect water quality, improve soil, and increase plant health and disease resistance in sweet cherry orchards 10.000

Dry Hollow Family Orchards FY17-3205 137

Describing bear use of salmon resource waves in the Copper River Delta, Alaska 10.000 15,000 Design for Mobile Anchors in Logging Systems: Field Verification and Dissemination 10.000 (35) Determining the minimum treatment area and importance of soil moisture for effective soil solarization in nurseries 10.000 2,904 Developing a Wilderness Character Monitoring Protocol for the US Forest Service 10.000 3,393 Developing Education and Research Infrastructure and Programs at the H.J. Andrews Experimental Forest 10.000 (415) Developing Forest Health Indicators of Climate Change in the Pacific Northwest to Identify Forested Watersheds at Risk and Develop Adaptation Strategies to Protect Forests: A Literature Review 10.000 17,066 Developing Oregon's Christmas tree seed capacity to meet consumer demands 10.000

Oregon Dept. of Agriculture ODA-3933-GR 21,341

Developing the Next Generation Dynamic Vegetation Model for the Pacific Northwest 10.000 2,483 Dry Farming Collaborative participatory research and decision-making tools, information sharing platforms, and resource development 10.000 2,250 23,387 Early detection of Phytophthora aff. kernoviae from commercial nurseries in Oregon and California 10.000 5,767 Early Seral Synthesis 10.000 (3) Early-seral habitat changes in public and private forestlands in western Oregon and Washington 10.000 (43) Ecology and Management of Mammalian Prey in the Pacific Northwest 10.000 382 Ecosystem Processes and Productivity: Biomass and nutrient cycling in the Pacific Northwest 10.000 1,435 Effect of thinning in riparian areas in headwater streams in northern California 10.000 75,722 Enhancements to the USDA Forest Service National Lichens & Air Quality Database and Clearinghouse Website 10.000 13,637 Enhancing Landslide Inventorying using LiDAR USFS Landslide Inventorying Tools using LiDAR and GIS 10.000 64,151 Enhancing long term research and data management at the H.J. Andrews Experimental Forest 10.000 123,133 Establish a new phosphorous acid MRL for U.S. blueberry exports to the EU 10.000

University of California, Davis

201700387-03-OSU-DeFrancesco 39

Evaluating and comparing amitraz resistance in Varroa mite populations in the United States and Canada 10.000 Project Apis m. 2019-2415 13,182 Evaluating assisted migration options for adapting to climate change 10.000 31,917 Evaluating downscaled climate data and vegetation models at regional scales 10.000 243,664

(9)





Number

Passed through to

Subrecipients Total

Expenditures Evaluating Forest Collaboratives as a Model of Natural Resource Governance 10.000 21,926 Evaluating stand thinning as a means to mitigate drought: The influence of topography 10.000 19,385 Evaluating the impacts of Douglas-fir competition on the physiological processes of Oregon white oak 10.000 1,530 Evaluating the nectar and pollen resources of alternative livestock forages to alfalfa 10.000 Project Apis m. 2019-1988 2,099 Evaluation of Oregon Tanoak for Genetic Resistance to Sudden Oak Death (caused by Phytophthora ramorum) and Gene Conservation of Tanoak 10.000 20 Evolution of rivers and landscapes in the Pacific Northwest: a critical zone perspective 10.000 39,595 Examining Preferences for Ecosystem Services as Forest Management Outcomes 10.000 (11) Examining the resilience and well-being constraints of rural households in Oregon's Northwest Forest Plan region, and implications for the Forest Service strategic objective of providing benefits to the public 10.000 16,368

Exotic Mollusk Survey 10.000Oregon Dept. of Agriculture ODA-4102-IG 8,392

Exotic species invasion dynamics in eastern Oregon and the Blue Mountain Ecoregion (BME) 10.000 65,529 Expanding access to specialty produce in the NW through variety trials and market introduction of overwintering and storage crops 10.000 Organic Seed Alliance

ODA-3359-GR / PCA 20335 (793)

Federal Cooperators Wood-Based Composite Center 10.000 106 Field Evaluation of Biofilms that reduce water usage in some specialty fruit crops 10.000


Fire history in central Oregon: role of landscape heterogeneity and application to current management 10.000 46,870 Fisher recolonization and recovery in Oregon 10.000 57,820 Fitting Biomass Equations for Pacific Northwest Tree Species 10.000 75,563 Food web structure in freshwaters 10.000 44,552 Forest Health Protection 10.680 173,750 Forestry Research 10.652 31,603 Go Big or Go Home? Tools and Processes for Scaling up Collaborative Forest Restoration 10.000 23,401 Grants for Agricultural Research, Special Research Grants 10.200

University of California Riverside A18-0916-S045 1,549

Grants for Agricultural Research, Special Research Grants 10.200


201302570-06-OSU-DeFrnsc-FoodU 745



201502587-05-OSU-DeFranc-FoodU (73)



201502587-38-OSU-Peachey-PERF 4

(10)





Number

Passed through to

Subrecipients Total

Expenditures Grants for Agricultural Research, Special Research Grants 10.200

University of California, Davis A18-0916-S007 4,010































Grants for Agricultural Research, Special Research Grants 10.200 University of Idaho

AP1008-SB2-870848 /PO PA048287 12,793


University of Washington

UWSC9743/BPO31410 101,761


Washington State University 105577_G003395 (3,818)


Washington State University 105577_G003659 281,698

Grants for Agricultural Research, Special Research Grants 10.200 12,499 Higher Education Graduate Fellowships Grant Program 10.210 101,469

Homeland Security Agricultural 10.304University of California, Davis

201603794-03 / A17-0222-S011 54,599

Identifying Barriers of Diversity and Inclusion in Forestry 10.000 7,710 Impacts of climate change on goby dispersal and recruitment in Hawaiian streams 10.000 249

(11)





Number

Passed through to

Subrecipients Total

Expenditures Implementing Meadow Creek Cattle Grazing Practices to Evaluate Compatibility with Recovery of Threatened Salmonids 10.000 15,907 Improving Biomass Equations for West Coast Tree Species 10.000 26,575 Improving Management Strategies to Reduce Damage by Forest and Aquatic Mammals 10.000 (3) Influence of Landscape Disturbance on Opportunities to Achieve Land and Fire Management Objectives 10.000 137,670 Integrated Programs 10.303 (2,044) 200,459 INTERACTIONS AMONG CONSUMERS AND STREAM FUNCTIONAL PROCESSES IN THE PACIFIC NORTHWEST: SCALING RESPONSES FROM PATCHES TO WATERSHEDS 10.000 6,392 International Forestry Programs 10.684 34,931 Interpreting hydro-geomorphic responses of streams and landscapes to climate change: new management options and tools 10.000 15,262 Investigating effects of sterol biosynthesis inhibiting fungicides on honey bee health and pollen phytosterol composition 10.000 Project Apis m. 2018-1970 2,004 Investigating the effects of mixed-severity wildfires on fisher population dynamics in northern California and southern Oregon 10.000 68,512 Landscape Assessment 10.000 65,380 Lichen and Bryophyte Indicators and Roles in Forests 10.000 (1,844) Lidar- and Phodar- based modeling of stand structure attributes, biomass, and fuels 10.000 86,345 Lidar for selecting stands for thinning and tree-lists 10.000 17,140 Lobert and East Hills Private Land Forest Inventory 10.000 4,660 Long-term Studies of Vegetation Dynamics in the Pacific Northwest 10.000 35,616 Mapping and identification of sources of lead hotspots in Portland, OR using isotope and analysis of moss 10.000 2,303 Mapping and Understanding the Ventenata Invasion in the Blue Mountain Ecoregion 10.000 31,462 Mapping Biomass from 1984-2014 Across the Pacific Northwest from LandTrendr Products 10.000 71,446 MCH: Development of a Novel Formulation for Tree Protection and Assessment of Ecological Risks to Forest Pollinators 10.000 6,194 Meadow Creek Pollinator Monitoring - Assessing Responses of Native Bees to Stream Restoration and Ungulate Grazing 10.000 27,770 Meadow Creek Restoration Monitoring - Assessing Impacts of Climate Change, Grazing, and Restoration Treatments on Vertebrates, Invertebrates, and Vegetation 10.000 64,297 Meadow Creek Vegetation Responses to Cattle, Deer, and Elk Herbivory for Recovery of Threatened Salmonids and Associated Metrics of Stream and Riparian Health 10.000 16,410

(12)





Number

Passed through to

Subrecipients Total

Expenditures Meta-Analysis of Douglas-Fir Provenance Tests to Estimate Responses to Seed Transfer and Climate Change 10.000 4,348 Microbiological Quality of Agricultural Water on Oregon's Vegetable and Berry Farm 10.000


Mitigation of soilborne Phytophthora ramorum to prevent recurrent nursery infestation 10.000 (3) Mortality and regeneration of western tree species - forests at the fringe 10.000 2,767 Multidecadal Forest Vegetation and Change Assessment Over Regional Landscapes 10.000 264,172 Multi-scale analysis and planning to support Forest Service fire management policy 10.000 254,421 My Southern Oregon Woodlands - Oregon Woodscamp Coordination 10.000

American Forest Foundation

NR183A7500120002 14,015

National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program 10.328 University of Idaho

AL1461-SB1-875935 / PA050473 10,436

Norman E. Borlaug International Agricultural Science and Technology Fellowship 10.777 10,017 NORTH AMERICAN BAT MONITORING PROGRAM (NABat) USFS R6 COORDINATION AND SUPPORT 10.000 68,748 Northwest Fire Science Consortium 10.000 98,256 Northwest Tree Improvement Cooperative 10.000 104,477 Operational Feasibility Analysis for Cable-Assisted Logging Systems: Equipment Stability and Soil Disturbance 10.000 52,554 Optimization of multi-species monitoring technique 10.000 25,479 Oregon Explorer Western Wildlife Risk Assessment and Community Wildfire Protection Planning 10.000

Oregon Dept. of Forestry 2015-1548 19,479

Organic Agriculture Research and Extension Initiative 10.307 Purdue University 8000064231-AG 43,725 Organic Agriculture Research and Extension Initiative 10.307 University of Georgia SUB0001847 33,955 Organic Agriculture Research and Extension Initiative 10.307 593,014 1,084,398 OSU and SNF Cultural Resource Five-Year Internship Program 10.000 (43) P3Nano Rebudget 10.000 Purdue University 8000072326-AG (133) Partnership Agreements 10.699 74,077 Payments to Agricultural Experiment Stations Under the Hatch Act 10.203 2,946,944 Phytophthora Species Diagnostics 10.000 185,089 Plant and Animal Disease, Pest Control, and Animal Care 10.025

Oregon Dept. of Agriculture ODA-4041-IG 19,946

Plant and Animal Disease, Pest Control, and Animal Care 10.025

Oregon Dept. of Forestry ODF-1099-18 24,745

Plant and Animal Disease, Pest Control, and Animal Care 10.025 University of Hawaii MA1382 10,000 Plant and Animal Disease, Pest Control, and Animal Care 10.025 Virginia Tech 422485-19201 (1,725) Plant and Animal Disease, Pest Control, and Animal Care 10.025 Virginia Tech 422603-19201 17,665 Plant and Animal Disease, Pest Control, and Animal Care 10.025 3,779 519,130

(13)





Number

Passed through to

Subrecipients Total

Expenditures Plant Materials for Conservation 10.905 44,024 PNW Climate Hub Outreach Project 10.000 52,397 Post-fire response to forest management: Mitigation for improved water quality performance 10.000 59,673 Potatoes USA Trials 10.000 Potatoes USA 19-79 38,932 Regional- to National-Scale Landscape Modeling of Water Quality 10.000 73,240 Response of Forest Aquatic Ecosystems to Riparian Canopy Modifications 10.000 2,422 RPA Land-Use Modeling 10.000 115,907

Rural Business Development Grant 10.351

South Central Oregon Economic Development District 2019-1677 5,000

Sagebrush Steppe Monitoring Study 10.000 34,828 Salmon responses to shifts in hydrology due to climate change 10.000 (311) Satellite Direct Readout Collaboration 10.000 2,134 Seed production of Great Basin native forbs --- Stable, efficient native forb seed production using small amounts of supplemental irrigation water; and seeding practices. Seed production of bluebunch wheatgrass. 10.000 45,922 Siuslaw National Forest Recreation Study and Analysis Project 10.000 31,080

Small Business Innovation Research 10.212 Intralytix Inc.2015-33610-23952-1 (4,970)

Small Business Innovation Research 10.212K2 BioMicrosystems LLC FY18-693 20,236

Small Business Innovation Research 10.212 mAbDx, Inc. 2015-839 (1,966) Socioeconomic Aspects of Beaver Management for Rangeland Restoration 10.000 65

Soil and Water Conservation 10.902Pheasants Forever Inc. SGI 2.0-16-17 (2,189)

Soil and Water Conservation 10.902 495,073 Soil Survey 10.903 19,401 Southern Blues CFLRP Forest Vegetation and Fuels Multi-Party Monitoring Program 10.000 2,816 Southern Blues CFLRP Forest Vegetation and Fuels Multi-Party Monitoring Program - Modification #4 10.000 121,531 Spatial copula modeling of forest inventory variables 10.000 6,721 Spatial Ecology and Survival of Small Carnivores and Small Mammals in the H.J. Andrews Experimental Forest, Oregon 10.000 120,803

Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture 5010 88,263




Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture Not Available 108,510

(14)





Number

Passed through to

Subrecipients Total

Expenditures

Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture ODA-18-008-GR 26,661

Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture ODA-3693-GR (9)

Specialty Crop Block Grant Program - Farm Bill 10.170University of California Riverside S-001084 59,505

Specialty Crop Research Initiative 10.309 Clemson University 1766-207-2020386 412,373

Specialty Crop Research Initiative 10.309Colorado State University G-01363-06 112,638

Specialty Crop Research Initiative 10.309 Cornell University 61314-9365 (1,653) Specialty Crop Research Initiative 10.309 Cornell University 73999-10418 82,500 Specialty Crop Research Initiative 10.309 Cornell University 79598-10785 41,021

Specialty Crop Research Initiative 10.309North Carolina State University 2016-0228-02 237,116

Specialty Crop Research Initiative 10.309North Carolina State University 2017-0398-16 141,417

Specialty Crop Research Initiative 10.309 Texas A&M University M1900059 29,087 Specialty Crop Research Initiative 10.309 University of Georgia SUB00000426 17,531

Specialty Crop Research Initiative 10.309University of Minnesota H006335005 132,191

Specialty Crop Research Initiative 10.309University of Minnesota H007082505 82,356

Specialty Crop Research Initiative 10.309Washington State University 123501-G003954 113,801

Specialty Crop Research Initiative 10.309Washington State University 123535_G003385 74,549

Specialty Crop Research Initiative 10.309Washington State University 125970-G003493 42,355

Specialty Crop Research Initiative 10.309 465,186 1,319,159

Sun Grant Program 10.320South Dakota State University 3TB640 508,254 1,465,547

Sun Grant Program 10.320 47,527 49,659 Support for the H.J. Andrews Experimental Forest Field Station 10.000 125,289

Support for the Landscape Change Monitoring System 10.000 21,869

Supporting "Climate-Smart Ranching" in NE Oregon with a Community-Based Observing Network (CBON) 10.000 43,661 Survey and monitoring of fishers in Oregon 10.000 12,515

Sustainable Agriculture Research and Education 10.215Montana State University G233-19-W7502 6,192

Sustainable Agriculture Research and Education 10.215 Utah State University 140867028-300 51,491 Sustainable Agriculture Research and Education 10.215 Utah State University 140867031 10,446 Sustainable Agriculture Research and Education 10.215 Utah State University 150893-00001-168 75,289 Sustainable Agriculture Research and Education 10.215 Utah State University 150893-00001-177 78,396 Sustainable Agriculture Research and Education 10.215 Utah State University 150893-00001-180 20,548 Sustainable Agriculture Research and Education 10.215 Utah State University 200592-383 22,268 Sustainable Agriculture Research and Education 10.215 Utah State University 200592-443 13,219 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-516 3,996 34,360 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-543 26,966 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-549 25,805

(15)





Number

Passed through to

Subrecipients Total

Expenditures Sustainable Agriculture Research and Education 10.215 Utah State University 201207-555 93,188 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-573 10,057 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-576 20,022 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-581 15,966 Sustainable Agriculture Research and Education 10.215 21,432 Sustainable and Thriving Environments of West African Regional Development 10.000 4,433 Synthesis of Long-Term Data from the Starkey Experimental Forest and Range and Associated Publications on Ungulate Ecology 10.000 1,597

Technical Assistance for Specialty Crops Program 10.604University of California, Davis A16-0082-S004 (70)

The influence of ungulate herbivory and fire on Ventenata dubia invasion in the Blue Mountain Ecoregion (BME) 10.000 30,901 Thinning and fuels reduction treatments for ponderosa pine forest restoration 10.000 18,540 Tracking aquatic species in streams using environmental-DNA 10.000 94,887 Tracking fish at their upper extent 10.000 60,779 Treatment effects on predicted fire behavior 10.000 30,091 Two "new" needle diseases of conifers in the Pacific Northwest Region caused by Phytophthora (red needle cast) and Rhizoctonia (web blight) 10.000 1,260 Understanding and improving honey bee nutrition to mitigate colony losses 10.000 Project Apis m. 2018-2149 50,244 Understanding more about the taxonomy of non-game freshwater fishes in the Pacific Northwest 10.000 1,820 Understanding the Mediating Political, Economic and Social Forces Creating Exurban Residential Environments and Patterns of Outdoor Recreation 10.000 (27) Understanding the role of fire refugia in promoting forest ecosystem resilience 10.000 62,057 Using an Agent-based Model to Evaluate Landscape Restoration Scenarios 10.000 12,685 Using lidar to select stands for thinning for the Umpqua and Willamette NF 10.000 95,843 Using the new verbenone antiaggregant formulation "SPLAT" to protect whitebark pine from mountain pine beetle infestation 10.000 5,575 VAR-FED Hardwoods Silviculture Res 10.000 24,454 VAR-FED Swiss Needle Cast Cooperative 10.000 6,631 VAR-FED Tree Improvement Research 10.000 10,001 Vegetation dynamics following high severity wildfires and the long-term impacts of emergency slope stabilization 10.000 7,325 Verde River Flows and Aquatic Invertebrates 10.000 11,001 Water availability in western Oregon headwaters: effects of density management and riparian buffers 10.000 549 Watersheds Research Coop - Federal Cooperators 10.000 3,928 Wildfire risk assessments for the Inland West 10.000 (2)

(16)





Number

Passed through to

Subrecipients Total

Expenditures Wildland fire managers' use of fire weather data in strategic and tactical decision-making across the United States: a combined fire modeling and social science-based analysis 10.000 21,758 21,758 Wildlife Services 10.028 116,557

Wood Utilization Assistance 10.674

U.S. Endowment for Forestry & Communities, Inc. E17-25 145,737

Wood Utilization Assistance 10.674 68,598 407,738 Woody Plants traits as predictors of resilience to environmental stress 10.000 4,270

Working Group for Advancement of Cellulose Nano-materials Use in Cement Based Materials 10.000

U.S. Endowment for Forestry & Communities, Inc. E18-12 62,661 146,201

Yreka Study 10.000

U.S. Endowment for Forestry & Communities, Inc. E16-13 140

Department of Agriculture Total 2,405,041 31,462,679

Department of CommerceArrangements for Interdisciplinary Research Infrastructure 11.619

Colorado State University G-00745-8 259,276

Assessing effects of developmental exposure to PCBs on zebrafish 11.000 Abt Associates 48864 23,114

CCA Proof of Concept Grant/OSU-Cascades ESE Department 11.000 VertueLab

CG-SOW-2018-BladeRunner Energy 8,000

Center for Sponsored Coastal Ocean Research Coastal Ocean Program 11.478

George Mason University E2039521 63,504

Center for Sponsored Coastal Ocean Research Coastal Ocean Program 11.478

University of Maryland Center for Environmental Science SA075258490 PO 613

Center for Sponsored Coastal Ocean Research Coastal Ocean Program 11.478 University of Miami S1503 69,338 Center for Sponsored Coastal Ocean Research Coastal Ocean Program 11.478 59,442 326,649

Climate and Atmospheric Research 11.431

Woods Hole Oceanographic Institution A101397 40,818

Climate and Atmospheric Research 11.431 248,107 908,122 Cluster Grants 11.020 296,269

Coastal Zone Management Administration Awards 11.419University of North Carolina - Wilmington 577280-18-01 7,684

Coastal Zone Management Administration Awards 11.419 University of Oregon 290130B 144 Coastal Zone Management Administration Awards 11.419 1,519 7,190

Columbia River Fisheries Development Program 11.436Oregon Dept. of Fish & Wildlife

020-11172-IAA-FISH (13)

Deschutes River Ceratanova Shasta Presence Evaluation II 11.000

Confederated Tribes of Warm Springs

TC-000011052-000 22,932

Educational Partnership Program 11.481University of Maryland Eastern Shore PO 17716 / year 4 (131)

(17)





Number

Passed through to

Subrecipients Total

Expenditures Enhancing coastal zone policy, management, and research through end user-driven quantification and public dissemination of carbon stocks data for Pacific Northwest tidal wetlands 11.000

Institute for Applied Ecology 3004281942-001 137,587

Fisheries Development and Utilization Research and Development Grants and Cooperative Agreements Program 11.427 426,318 Geodetic Surveys and Services (Geodesy and Applications of the National Geodetic Reference System) 11.400

University of New Hampshire 17-035 86,926

Habitat Conservation 11.463 33,726

Integrated Ocean Observing System (IOOS) 11.012

Monterey Bay Aquarium Research Institute 1611121 123,789

Integrated Ocean Observing System (IOOS) 11.012

Southeastern Universities Research Association 2013-011 1,508

Integrated Ocean Observing System (IOOS) 11.012University of Washington

UWSC6350 / BPO5105 (730279) 26


UWSC7800 / BPO5119 (762841) 97,052


UWSC9206 / BPO 16539 920,310

Living Marine Resources Cooperative Science Center at OSU 11.000

University of Maryland Eastern Shore

NA16SEC4810007 / Year 1 47,430



NA16SEC4810007 / Year 2 118,947



NA16SEC4810007-Year 3 / PO7449 42,673

Marine Mammal Data Program 11.439 95,443 Measurement and Engineering Research and Standards 11.609

University of Alabama, Huntsville 2017-081 80,015

Measurement and Engineering Research and Standards 11.609 7,107 National Oceanic and Atmospheric Administration (NOAA) Cooperative Institutes 11.432 University of Maryland 18171-Z7813007 70,259

National Oceanic and Atmospheric Administration (NOAA) Cooperative Institutes 11.432


National Oceanic and Atmospheric Administration (NOAA) Cooperative Institutes 11.432 204,832 3,038,159

NOAA NEWPORT OPERATION AND MAINTENANCE 11.000 647,677 Ocean Acidification Program (OAP) 11.017 4,032 233,171 Ocean Exploration 11.011 13,326 22,985

Production of Mean Annual Maximum Precipitation Grids Using a Specifically Optimized PRISM System 11.000 7,245 Sea Grant Support 11.417 University of Oregon 2409U0A 3,044 Sea Grant Support 11.417 331,794 1,759,175 Unallied Science Program 11.472 EcoNorth 2017-710 3,870

(18)





Number

Passed through to

Subrecipients Total

Expenditures

Unallied Science Program 11.472North Pacific Research Board 1533 (42)

Unallied Science Program 11.472North Pacific Research Board 1712 18,218



Unallied Science Program 11.472North Pacific Research Board A93-01b 30,268

Unallied Science Program 11.472North Pacific Research Board A99-01 31,247

Unallied Science Program 11.472 18,668 Department of Commerce Total 863,052 10,289,622

Department of Defense2017 Charter Party Agreement with ADH Environmental for Shiptime on R/V Oceanus 12.000 ADH Environmental ADH MTCA FY18 34,623 A Mechanistic Understanding of PFASs in Source Zones: Characterization and Control 12.000 174,185 279,613 Active Transfer Learning of Latent Competencies 12.000 EduWorks 2016-502 (16) Adult Salmonids Trap and Transport Success Above Dams 12.000 46,731 448,872

AFR 03-101-OS-02 12.000 Torc Robotics AFR 03-101/OS-02 (8)

Air Force Defense Research Sciences Program 12.800Southern University and A&M College

OSP-02-8300-2018-0011 25,355

Air Force Defense Research Sciences Program 12.800University of Texas at Austin UTA16-001294 128,795

Analysis of Defense Related Ecosystem Services 12.000 60,000 145,456 Anomaly Detection at Multiple Scales 12.000 Leidos Inc. P010083638 (2,984)

Automatic Sensing for Clinical Documentation (ASCD) 12.000Vanderbilt University Medical Center VUMC 63462 141,232

Autonomous Floats Navigation 12.000 22,661 Autonomous Underwater Vehicle Passive Acoustic Monitoring of Beaked Whales in the Southern California Area 12.000 HDR One Company

1000300001180-CONFORMED 4,238

Avian Predation: East Sand Island Passive Integrated Transponder (PIT) Tag Recovery and Predation Rates, 2017 12.000 Real Time Research 2017F0014-OSU 13

Basic and Applied Scientific Research 12.300Brigham Young University 16-0481 103,155

Basic and Applied Scientific Research 12.300 Cornell University 74642-10533 124,162

Basic and Applied Scientific Research 12.300Portland State University 203SID410 (1,413)

Basic and Applied Scientific Research 12.300University of St. Andrews

SMC7-XOBO19 / 13374 132,714

Basic and Applied Scientific Research 12.300 186,339 5,331,989 Basic Scientific Research 12.431 21,389 Biologically Sourced Sonar and Soundscape Interrogation - OSU 12.000 Raytheon SAS HR001119C0012 6,629

(19)





Number

Passed through to

Subrecipients Total

Expenditures Blue and Fin Whale Tagging In Support Of Marine Mammal Monitoring Across Multiple Navy Training Areas In Southern California SOCAL 2017 12.000 HDR One Company 1000300000861 37,069 Characterization of the Nature and Extent of Per- and Polyfluoroalkyl Substance (PFASs) in Environmental Media at DoD Sites for Informed Decision Making 12.000 51,613 Charter Party Agreement with ADH Environmental for Shiptime on R/V Oceanus 12.000 ADH Environmental

ADH Charter Agreement 60,494

Chinook and Steelhead Surrogate Planning 12.000 (4,390)

Collaborative Research and Development 12.114 Towson University23, PO# 7359, Project# 5040400 143,425

Collaborative Research and Development 12.114Washington Department of Ecology C1900055 25,000

Command and Control of Aggregate Swarm Tactics (CCAST) 12.000 Raytheon SAS LBN9513582 243,004

DARPA D3M, "EVE" 12.000Charles River Analytics Inc. SC1619901 36,214

Demonstration of commercially available high-performance PAM glider and profiler float 12.000 67 Detection and Classification of Clicks and Whistles in Ishmael and ROCCA 12.000 Bio-Waves, Inc. BW-2017-03 2 Determination of Impacts on Juvenile Salmon from Predation by Double-crested Cormorants and Caspian Terns on East Sand Island 12.000 Real Time Research 20150004-OSU 1 Development of Slow Release Compounds for the Aerobic Cometabolic Treatment of Complex Mixtures of COC Released from Low Permeability Zones 12.000 49,879 350,462 Development, Evaluation, and Technology Transfer of BMPs for Optimizing Removal of PAHs, PCBs, PFASs, and Metals from Stormwater at DoD Sites 12.000 426,392 Direct 3D Printing of Soft Stretchy Rubber 12.000 CACI Inc. P000011915 (9,024)

Drone-based Sensing of the Nearshore Environment 12.000Innovative Imaging and Research 2018-665 15,007

Embodied Neuroprostheses 12.000 University of Utah 10038415-OR 15,483 Evaluation of a Naval Shipyard Cleanup Project 12.000 CH2M Hill, Inc. 10006-7-107098 57,280 Evaluation of a Novel Multiple Primary Substrate (MPS) Cometabolic Biosparging Technology for In Situ Bioremediation of 1,4-Dioxane and Chlorinated Solvents in Groundwater 12.000

APTIM Federal Services, LLC 204711 101,658

Evaluation of the Impacts of Avian Predation on Salmonid Smolts from the Columbia and Snake Rivers, 2017-2018 12.000 Real Time Research 20170007-OSU 6,244 Examining the influence of salient visual cues on collective behavior in human crowds 12.000 17,746 FIELDS: Fabricating with Interoperable Engineering, Planning, Design, and Analysis 12.000 84,284 Flow-population models for tracking non-stationary changes in riparian and aquatic ecosystems 12.000 101,930 237,970

High-Speed Analog-to-Digital Converter Development 12.000 Voxtel, Inc.W31P4Q-16-C-0086 (271)

(20)





Number

Passed through to

Subrecipients Total

Expenditures Humpback Whale Tagging In Support Of Marine Mammal Monitoring Across Multiple Navy Training Areas In Pacific Ocean 12.000 163,455 Humpback Whale Tagging in Support of Marine Mammal Monitoring Across Multiple Navy Training Areas in the Pacific Ocean 12.000 445,739 Ignition, Propagation, and Emissions of Smoldering Combustion: Experimental Analysis and Physics Based Modeling 12.000 299,543 Implementation of the Inland Avian Predation Management Plan, 2016 12.000 Real Time Research 20160006-OSU (6) Incorporating Photoperiodism in Inspect Phenology Models with Application for Biological Control of Weeds on Department of Defense Lands 12.000 65,101 282,721

Increasing the thrust-to-weight ratio of a JetCat Engine 12.000Universal Technology Corporation

FA865014D2411/18-790-0008-38C4 19,088

Insights into the Long-Term Mass Discharge & Transformation of AFFF in the Unsaturated Zone 12.000

CDM Federal Programs Corportion 6500-001-004-CS 61,392

JMPS Automated Planning 12.000 53,585 Key Fate and Transport Processes Impacting the Mass Discharge, Attenuation, and Treatment of Poly- and Perfluoroalkyl Substances and Comingled Chlorinated Solvents or Aromatic Hydrocarbons 12.000

Colorado School of Mines 401245-5802 387,058

Li-Fi Network for Tactical Shelters 12.000 E-Lambda LLC N6833518C0562 45,348 Mathematical Sciences Grants Program 12.901 116,401 Military Medical Research and Development 12.420 178,873 790,486 Multiscale Simulation Framework for Modeling of Structural Reactive Materials 12.000

Wasatch Molecular, Inc. 2018-981 50,457

NAVFAC Inspection 12.000University of Washington

UWSC10469 / BPO31365 35,689

NEARSHORE MONITORING DATA COLLECTION WITH ARGUS BEACH MONITORING SYSTEM 12.000 92,221

NewFields Government Services Master Time Charter Agreement 12.000

NewFields Government Services LLC 2016-3086 57,798

NewFields Government Services Master Time Charter Agreement 12.000

NewFields Government Services LLC 2018-1409 367,024

PacWave North: Microgrid Demonstrations in a Fully Energetic Open-Coastal Setting 12.000


UWSC11130/BPO 39672 39,524

Real-time Remotely Sensed Topography and Bathymetry using Visible and LWIR Imagery Acquired from Small UASs, Phase II 12.000

Innovative Imaging and Research 2018-1430 51,352

Research and Technology Development 12.910Carnegie Mellon University 1190050-405770 118,361

Research and Technology Development 12.910 Columbia University 1(GG014532-04) 37,614

Research and Technology Development 12.910

Defense Advanced Research Projects Agency D18AP00063 41,431 187,617

Research and Technology Development 12.910

Defense Advanced Research Projects Agency Not Available 6,357

(21)





Number

Passed through to

Subrecipients Total

Expenditures Research and Technology Development 12.910 Raytheon SAS PO LBN9513024 22,053 328,054

Research and Technology Development 12.910University of California, Los Angeles 1015 G UA493 203,419

Research and Technology Development 12.910 215,172 2,659,646 Resilient Emergent Properties of Autonomous Agent InteRactions (REPAIR) 12.000

Smart Information Flow Technologies

REPAIR-PH2-OSU-01 158,614

San Clemente Argus Station OutYear Maintenance and Ops 12.000 88,355 SBIR (Phase II): Nonlinear Optical Threat Protection Technologies for Daytime Cameras 12.000 Voxtel, Inc. 2018-2029 / 86,402 Scaled Assembly of Heterogeneous Nanomaterials (SAHN) 12.000 Voxtel, Inc. 2016-915 83,903 Scientific Research - Combating Weapons of Mass Destruction 12.351 92,103 186,806 Sediment Dynamics at Yaquina Bay, Oregon 12.000 4,284 Self-Learned Agents for Collective Analysis of Human Activities and Events in Aerial Videos 12.000 Boston Fusion Corp BF-5047-SK001 4,434 Simple performance-characterized automatic detection of marine mammal sounds 12.000 61,516 Simulation of Multiphase Interactions in Reactive Structural Materials 12.000

Wasatch Molecular, Inc. 2018-1025 51,461

SpiderBots 12.000 CACI Inc. P000012572 (194) Tag recovery operation for Navy research collaborators 12.000 HDR One Company 1000300000602 1

Teammate aware autonomy 12.000Scientific Systems Company Inc. SC-1656-02 44,125

Transparent Computing 12.000 Galois Inc. 2015-011 235,951 YAB Crystal Growth 12.000 Voxtel, Inc. 2017-2789 84,220

Department of Defense Total 1,233,797 16,832,026

Department of Education Education Research, Development and Dissemination 84.305 Yale UniversityGR103267 (CON-80001285) 7,884

Education Research, Development and Dissemination 84.305 146,445 1,125,000 English Language Acquisition State Grants 84.365 98,944 411,285

MAAPS: Monitoring Advising Analytics to Promote Student Success 84.000

Georgia State University Research Foundation Inc. SP00012139-08 168,617

Overseas Programs - Doctoral Dissertation Research Abroad 84.022 6,353 Postsecondary Education Scholarships for Veteran's Dependents 84.408 1,897 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities 84.325 469,812 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 84.367

Western Oregon University TRSUB14.07 (922)

Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 84.367

Western Oregon University TRSUB18.04 6,290

Department of Education Total 245,389 2,196,216

(22)





Number

Passed through to

Subrecipients Total

Expenditures

Department of EnergyA model selection approach to assess water quality using satellite imagery and limited field measurements 81.000

Oak Ridge Associated Universities/DOE FY 17-3759 13,785

Advanced manufacturing of metallic fuels and cladding by equal-channel angular pressing 81.000

Idaho National Laboratory 145660-00020 31,086

Advanced Research Projects Agency - Energy 81.135Gas Technology Institute S618 1,461

Advanced Research Projects Agency - Energy 81.135Sharp Laboratories of America 2013-2150 (1,420)

Advanced Research Projects Agency - Energy 81.135University of Illinois, Urbana-Champaign 2013-00286-05 (1,043)

Advanced Research Projects Agency - Energy 81.135 105,976 354,881 Avian Predation on Juvenile Salmonids in the Lower Columbia River 81.000 94,385 409,172 BENCHMARK COMPARISONS OF DRIFTING HYDROPHONE SYSTEMS WITH PNNL 81.000

DOE Pacific Northwest National Lab 445770-445759 23,782

Better Scientific Software Fellowship 81.000DOE Oak Ridge National Laboratory 4000168106 6,728

Center for Next Generation of Materials by Design: Incorporating Metastability 81.000

DOE National Renewable Energy Lab XGJ-4-42247-01 114,607

Conservation Research and Development 81.086 OnTo Technology LLC 2018-1735 3,851 Conservation Research and Development 81.086 94,556

Control-informed WEC performance optimization 81.000Sandia National Laboratories 1957986 63,885

Converting Natural Gas to Liquid Fuels by Low Energy Electrical Corona Discharge Processes 81.000 531,890 956,373 Coupling Monte Carlo and Deterministic Methods for Multiband Cross Section Generation and Applications 81.000

Lawrence Livermore National Laboratory B625784 1,534

Data Analysis of Godiva-IV Experiments to Measure Fission Product Yields from 235U and 238U 81.000

Lawrence Livermore National Laboratory B626572 18,521

Defense Nuclear Nonproliferation Research 81.113 University of Michigan3003608372 (3003222385) 149,586

Demonstration of In-situ Thermal Hydraulic Monitoring of Printed Circuit and Additively Manufactured Compact Heat Exchangers for VTR Testing 81.000

Idaho National Laboratory 0221030 1,267

Design and Experimental Characterization of a LOCA Capsule for Transient Testing 81.000


DESIGN OF AN IN-PILE EXPERIMENTAL LOOP FOR FAST TEST REACTOR CONDITIONS 81.000


Developing Process-Microstructure-Property Correlation of Radiation-Tolerant Nanoporous and Nanostructured Materials for High Irradiation Environments 81.000

Sandia National Laboratories PO 2034563 2,337

Developing Proper Generalized Decomposition Approaches to Modeling Rapid Nuclear Reactor Transients with Application to TREAT Experiments 81.000


Direct Coupling of MC21 to BISON through HDF5 and Exodus Interface Files 81.000


Electricity Delivery and Energy Reliability, Research, Development and Analysis 81.122

University of Illinois, Urbana-Champaign

078620-15702 (2015-06605-07) 237,324

(23)





Number

Passed through to

Subrecipients Total

Expenditures Environmental Monitoring/Cleanup, Cultural and Resource Mgmt., Emergency Response Research, Outreach, Technical Analysis 81.214

Oregon Dept. of Energy 14-025 (802)

Environmental Remediation and Waste Processing and Disposal 81.104 Vanderbilt University

UNIV59366(formerly 19067-2) 229,528

Environmental Remediation and Waste Processing and Disposal 81.104

Washington Department of Ecology C1900078 75,096

Evaluate Reproductive Success of hatchery-origin and wild origin Steelhead in Hood River' 81.000 328,217 Evolution of thermal conductivity in irradiated lithium aluminate 81.000

DOE Pacific Northwest National Lab 378025 23,295

Exp Ocean Survival of Salmoniids 81.000 318,325

Feed to Flightstock Tool (F2FT) 81.000Lawrence Livermore National Laboratory 7449593 5,420

Fiber-Optic Technology for Downhole Measurement of Potential Groundwater Impacts 81.000 URS Corporation RES1100426 / 029 (7,543) FLOW TESTING OF IN-PILE I-LOOP BOOSTER ELEMENT 81.000


Fossil Energy Research and Development 81.089University of Texas at Austin UTA17-000274 114,638

Fossil Energy Research and Development 81.089 164,307 Further Security Enhancements for the Oregon State TRIGA® Reactor 81.000

Sandia National Laboratories PO 1276073 188

Hanford Natural Resource Damage Assessment Technical Support 81.000

Oregon Dept. of Energy 19-004 17,467

High Performance Research Reactor Hydro-Mechanical Fuel Test Program 81.000


High Temperature Test Facility Shakedown and Matrix Testing 81.000


Higher Order Finite Element Methods for Thermal Radiation Transport 81.000

Lawrence Livermore National Laboratory B611208 (584)

HTTF Testing 2016 81.000Idaho National Laboratory 00145660-014 682,822

In Situ Mechanical and Corrosion Testing 81.000Idaho National Laboratory 0145660-00025 247,253

Industrial Engineering Support for Low-Enriched Uranium Fuel Fabrication Process Flow - Phase 2 81.000


Industrial Engineering Support for Low-Enriched Uranium Fuel Fabrication Process Flow - Phase 2 (Supplement 2019) 81.000


Informing habitat conservation efforts towards increasing juvenile Chinook salmon size, growth, and survival across stream networks 81.000

Columbia River Inter-Tribal Fish Commission

C19-03 / C1900340 175

InSPIRE 2.0: Dryland Agriculture and Solar Co-Location 81.000

DOE National Renewable Energy Lab XHR-9-92172-01 666

Integral Ractor Containment Condensation Model and Experimental Validation 81.000

Idaho National Laboratory 00128748 (314)

Machine Learning for Nuclear Data, Criticality Safety and Non-Proliferation Applications 81.000

Los Alamos National Laboratory 511502-513577 39,885

Management of Ameriflux Network Project 81.000Lawrence Berkeley National Lab 7117975 250,366

(24)





Number

Passed through to

Subrecipients Total

Expenditures

Mini-DAQ for Wave Energy Conversion 81.000Sandia National Laboratories 1985756 18,087

Model Predictive Control for Wave Energy Implementation Support 81.000

Dehlsen Associates LLC

PO00632 / 2018-2444 63,640

Multi-Physics Simulation of RIA and LOCA Events with Post-Event Fuel Migration Experiments 81.000


NATIONAL UNIVERSITY CONSORTIUM TRAVEL SUPPORT 81.000


NEUTRONIC ANALYSIS OF THE UT Austin NETL REACTOR 81.000


Neutronic design of a new core for the WWR-SM reactor using commodity fuel pins 81.000

DOE Pacific Northwest National Lab 286719 (253)

Nonproliferation and International Safeguards Senior Design Project 81.000

DOE Pacific Northwest National Lab 445770-448372 682

Nuclear Energy Research, Development and Demonstration 81.121

University of California Berkeley

00009033/DE-NE0008460 39,964


University of California, Berkeley

BB01185638-00009946 24,887

Nuclear Energy Research, Development and Demonstration 81.121 University of Idaho

EH3005-SB-762925 39,205


University of Mississippi 17-06-016 57,738


University of New Mexico 327074-874U 83,385


University of Wisconsin - Madison

775K552 / DE-NE0008714 68,605

Nuclear Energy Research, Development and Demonstration 81.121 892,879 1,858,574

Nuclear Non-Proliferation Detector Concept 81.000Idaho National Laboratory 00145660-00011 591

Office of Science Financial Assistance Program 81.049 University of IdahoGNK498-SB-001, PO P0050995 14,400

Office of Science Financial Assistance Program 81.049University of Notre Dame 202373 49,529

Office of Science Financial Assistance Program 81.049 49,024 660,157

OSU/ORNL GO! Program 81.000DOE Oak Ridge National Laboratory 4000167629 38,978

Platform for efficient large-scale storage and analysis of multi-omics data in plant and microbial systems 81.000

Omics Data Automation Inc.

DE-SC0019686_OSU 7,987

PNNL - Boiteau Joint Appointment Agreement FY19 81.000Battelle Memorial Institute 445770 / 448636 10,249

Preparation of Targets for SPIDER 81.000Los Alamos National Laboratory 408419 795

Proposal to Idaho National Laboratory to Implement a Joint Appointment for Professor Andrew C. Klein, Department of Nuclear Engineering and Radiation Health Physics 81.000

Idaho National Laboratory 68396-02 1

Protective Relay Study 81.000Idaho National Laboratory 145660-00024 4,462

Pump Commissioning Flow Tests - a Naval Reactor Experimental Loops in ATR 81.000

Idaho National Laboratory 145660-00017 91,416 534,321

Radiological Emergency Response Training 81.000 14,589

(25)





Number

Passed through to

Subrecipients Total

Expenditures

Renewable Energy Research and Development 81.087American Institute of Chemical Engineers

DE-EE000788-08.6 215,287


DE-EE0007888.10.9a 36,855


DE-EE0007888-08.4 28,026


DE-EE0007888-10.9a 38,176


DE-EE007888-10.4 85,954 863,836

Renewable Energy Research and Development 81.087American Institute of Chemical Engineers Not Available 55,954


RAPID Project Management 123,772

Renewable Energy Research and Development 81.087Dehlsen Associates LLC

PO 00529/2014-1697 (30)

Renewable Energy Research and Development 81.087 IntraMicron Inc. 17255-S12 37,287

Renewable Energy Research and Development 81.087University of California, Los Angeles 4550 G WA295 17,137

Renewable Energy Research and Development 81.087 467,593 4,668,526 Reviewing Dossiers of NETL Researchers 81.000 Leidos Inc. P010225898 9,426

Stewardship Science Grant Program 81.112Colorado School of Mines 401140-5802 50,448

Stewardship Science Grant Program 81.112University of Notre Dame 203186OSU 232,060

Stewardship Science Grant Program 81.112 157,798

Stoerzinger Joint Appointment Agreement 81.000DOE Pacific Northwest National Lab 445770-448609 10,657

System Agnostic Switched Reluctance Linear Generator for WECs 81.000

Dehlsen Associates LLC

PO00583/2015-1642 (15,212)

Target Making for NIFFTE collaboration 81.000Lawrence Livermore National Laboratory B616184 19,665

Technical Review and Input of NETL Research 81.000 Leidos Inc. P010225898 7,731 Technical Support for Effects of Wind Forcing on Extreme Wave Modeling 81.000


Technical Support for Natural Resource Trustee for Post-Remedial Restoration of Hanford Nuclear Site 81.000


Thermal Radiation Transport Using Higher-Order Finite Elements on Meshes with Curved Surfaces 81.000

Lawrence Livermore National Laboratory B620543 588

TPC Target Making 81.000Lawrence Livermore National Laboratory B630762 33,417

TREAT HENRI - System Modeling and Prototype Testing 81.000


Uranium Enrichment Assay with a Spectral Radiography CdTe Detector 81.000


VTR Strategic Initiatives 81.000 University of Pittsburgh 0062228-1 33,889 Department of Energy Total 2,319,117 16,838,554

(26)





Number

Passed through to

Subrecipients Total

Expenditures

Department of Health and Human Services Aging Research 93.866

Northern California Institute for Research and Education PER1868 - 094604 19,142

Aging Research 93.866Oregon Health & Science University 1005711_OSU 10,058

Aging Research 93.866Pennsylvania State University

5928-OSU-NIA-2167 12,044

Aging Research 93.866World Health Organization

201540498/201650964 (9,346)

Aging Research 93.866 147,344 1,017,782

Alcohol Research Programs 93.273The Mind Research Network 6010561 SubN1 3,498

Alcohol Research Programs 93.273 84,949 404,375 Allergy and Infectious Diseases Research 93.855 Aradigm Corporation 2014-1030 (1,466) Allergy and Infectious Diseases Research 93.855 Aradigm Corporation 2018-45 127,376

Allergy and Infectious Diseases Research 93.855Mount Sinai School of Medicine 0254-3243-4609 (428)

Allergy and Infectious Diseases Research 93.855Mount Sinai School of Medicine 0254-3245-4609 (1,474)

Allergy and Infectious Diseases Research 93.855Mount Sinai School of Medicine

0255-A131-4609/ 0255-A132-4609 117,350

Allergy and Infectious Diseases Research 93.855 Najit Technologies Inc. 2017-1066 26,546

Allergy and Infectious Diseases Research 93.855University of Texas Southwestern

150401 PO 0000000619 5,344

Allergy and Infectious Diseases Research 93.855University of Texas Southwestern 160608 / 141405 202,292

Allergy and Infectious Diseases Research 93.855University of Washington

UWSC9071 / BPO 15471 148,799

Allergy and Infectious Diseases Research 93.855Western University of Health Sciences

20150-Steinauer-OSU 17,338

Allergy and Infectious Diseases Research 93.855 192,056 1,675,855

Arthritis, Musculoskeletal and Skin Diseases Research 93.846 92,818 Assistance Programs for Chronic Disease Prevention and Control 93.945

Oregon Health Authority 146299 (5,020)

Biomedical Research and Research Training 93.859Texas A & M University 02-S150274 3,195

Biomedical Research and Research Training 93.859 University of Nebraska 34-5360-2076-001 108,321 Biomedical Research and Research Training 93.859 University of Oregon 215030A 39,901

Biomedical Research and Research Training 93.859University of Pennsylvania 566033 6,354

Biomedical Research and Research Training 93.859Wake Forest University 100100-550010 63,928

Biomedical Research and Research Training 93.859 1,956,841 Cancer Cause and Prevention Research 93.393 University of Oregon 215370A 25,585 Cancer Cause and Prevention Research 93.393 57,508 Cancer Detection and Diagnosis Research 93.394 48,768

Cancer Research Manpower 93.398Oregon Health & Science University 1003692_OSU 43,217

Cancer Treatment Research 93.395State University of New York at Buffalo R1064720 51,544

Cancer Treatment Research 93.395 10,623

(27)





Number

Passed through to

Subrecipients Total

Expenditures

Cardiovascular Diseases Research 93.837 New York University15-A1-00-004212-01 30

Cardiovascular Diseases Research 93.837Oregon Health & Science University 1005697_OSU 11,334

Cardiovascular Diseases Research 93.837The Ohio State University 60067881 23,949

Cardiovascular Diseases Research 93.837 3,640 Centers for Research and Demonstration for Health Promotion and Disease Prevention 93.135 15,921 193,289 Child Health and Human Development Extramural Research 93.865

Wake Forest University WFUHS 112761 29,416

Child Health and Human Development Extramural Research 93.865 90,962 848,726 Development of NHSN's AUR data and SAAR to support Antibiotic Benchmarking Program among Vizient Members 93.000

Virginia Commonwealth University

FP00004348_SA001 95,126

Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 896,812 Disabilities Prevention 93.184 Special Olympics OSU-001 2,309 Discovery and Applied Research for Technological Innovations to Improve Human Health 93.286

Georgia Regents University 33585-1 16,347

Discovery and Applied Research for Technological Innovations to Improve Human Health 93.286

Oregon Health & Science University 1008659_OSU 201,954

Discovery and Applied Research for Technological Innovations to Improve Human Health 93.286 6,208 507,674

Drug Abuse and Addiction Research Programs 93.279 Boston UniversityBMC ID 6702 / PO 11524101 84,285

Drug Abuse and Addiction Research Programs 93.279Oregon Health & Science University 1012350_OSU 62,691

Drug Abuse and Addiction Research Programs 93.279Oregon Health & Science University 1012803_OSU 20,837

Drug Abuse and Addiction Research Programs 93.279 Second Genome 2019-2155 31,859

Drug Abuse and Addiction Research Programs 93.279The Mind Research Network 6010562 SubN1 3,641

Drug Abuse and Addiction Research Programs 93.279University of California San Francisco

10961sc / CTN-0086 102,987

Drug Abuse and Addiction Research Programs 93.279 195,775 Environmental Health 93.113 Cornell University 76146-10616 35,167 Environmental Health 93.113 Omega Optics, Inc. OSU2014-996 3,943

Environmental Health 93.113University of California at San Francisco 10473sc 181,309

Environmental Health 93.113Wake Forest University WFUHS 550032 18,948

Environmental Health 93.113 397,412 2,518,158 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323

Oregon Health Authority 149324 230,880

Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323






(28)





Number

Passed through to

Subrecipients Total

Expenditures Extramural Research Programs in the Neurosciences and Neurological Disorders 93.853

University of Illinois, Chicago 16979-00 30,080

Extramural Research Programs in the Neurosciences and Neurological Disorders 93.853 28,892 Family Smoking Prevention and Tobacco Control Act Regulatory Research 93.077 University of Maryland 54298-Z0067203 5,399 Information Session: Implementation of Zebrafish Ontologies for Toxicology Screening 93.000

Integrated Laboratory Systems ILS180706 64,861

Injury Prevention and Control Research and State and Community Based Programs 93.136


Injury Prevention and Control Research and State and Community Based Programs 93.136 143,945 206,587 Lung Diseases Research 93.838 15,376

Mental Health Research Grants 93.242University of California, Irvine 2017-3450 18,066

Mental Health Research Grants 93.242University of South Florida 6405-1101-00-A 5,075

National Center for Advancing Translational Sciences 93.350Johns Hopkins University 2004147433 98,226

National Center for Advancing Translational Sciences 93.350Oregon Health & Science University 1010312_OSU 146,103

National Center for Advancing Translational Sciences 93.350Oregon Health & Science University

1010312_OSU_Newsom 137,959

National Center for Advancing Translational Sciences 93.350Oregon Health & Science University 1011902_OSU 25,275

National Center for Advancing Translational Sciences 93.350 353,120 739,133 NIEHS Superfund Hazardous Substances Basic Research and Education 93.143 2,229 2,419,853

NIH Data Commons Pilot Phase 93.000University of North Carolina, Chapel Hill 5109149 143,944

NIH Data Commons Pilot Phase (NHLBI) 93.000University of North Carolina, Chapel Hill 5109481 146,466

Nursing Research 93.361University of Washington

UWSC9780/BPO 23365 53,504

Occupational Safety and Health Program 93.262Center for Construction Research and Training 17-8-PS 17,407

Occupational Safety and Health Program 93.262Eastern Washington University

2015-1279 / EWU# SR0008429 (1,284)

Occupational Safety and Health Program 93.262Eastern Washington University 2019-746 49,613

Occupational Safety and Health Program 93.262Eastern Washington University SR0009641 22,303

Occupational Safety and Health Program 93.262Northeastern University, Boston, MA 500326-78052 43,654

Occupational Safety and Health Program 93.262University of Washington

UWSC10249 / BPO 28873 6,838


UWSC10972 / BPO 37132 170


UWSC9328 / BPO 17849 150,936

(29)





Number

Passed through to

Subrecipients Total

Expenditures Occupational Safety and Health Program 93.262 11,029 213,404

Oral Diseases and Disorders Research 93.121Oregon Health & Science University 1013028_OSU 23,329

Oral Diseases and Disorders Research 93.121 385,731

Policy Research and Evaluation Grants 93.239University of Wisconsin 745K415 366

Research and Training in Complementary and Integrative Health 93.213







University of Illinois, Chicago 16883 465,982

Research and Training in Complementary and Integrative Health 93.213 21,438 762,521

Research Infrastructure Programs 93.351Oregon Health & Science University 1003383_OSU 47,985

Research Infrastructure Programs 93.351 Purdue University4102-86206 / 11000451-010 1,287

Research Infrastructure Programs 93.351 University of Oregon 217090A 38,700 Research Infrastructure Programs 93.351 602,918 1,259,588

Research on Healthcare Costs, Quality and Outcomes 93.226Oregon Health & Science University 1015223_OSU 34,119

Research on Healthcare Costs, Quality and Outcomes 93.226University of Illinois, Chicago 16660 13,598

Research on Healthcare Costs, Quality and Outcomes 93.226 373,133 589,516 Research Related to Deafness and Communication Disorders 93.173 321,118

Sodium Reduction in Communities 93.082Oregon Health Authority 153667 104,898

Trans-NIH Research Support 93.310 Columbia UniversityPO G11509 2(GG101662-02) 9,291

Trans-NIH Research Support 93.310 Duke University 203-7880 37,991 Trans-NIH Research Support 93.310 Duke University 203-7960 64,641

Trans-NIH Research Support 93.310Lawrence Livermore National Laboratory 7452392 85,869

Trans-NIH Research Support 93.310 University of Rochester417050 / UR FAO GR50630 (8,894)

Trans-NIH Research Support 93.310 83,700 336,115

Vision Research 93.867Universal Adherence LLC 2018-2480 77,466

Vision Research 93.867 5,750 Department of Health and Human Services Total 2,526,364 22,366,575

Department of Homeland Security Assistance to Firefighters Grant 97.044 288,168 478,560

Centers for Homeland Security 97.061University of North Carolina, Chapel Hill 5101654 100,053

Homeland Security Grant Program 97.067Central Oregon Community College 18-205 9,967

(30)





Number

Passed through to

Subrecipients Total

Expenditures Homeland Security Research, Development, Testing, Evaluation, and Demonstration of Technologies Related to Nuclear Threat Detection 97.077 6,868 222,728

Department of Homeland Security Total 295,036 811,308

Department of JusticePromoting Evidence Integration in Sex Offender Management Discretionary Grant Program 16.203

Portland State University 100102 5,124

Department of the Interior2017 Baker & Malheur County Sage-Grouse/Raven Study 15.000

Oregon Dept. of Fish & Wildlife 117-17 167,058

Adaptive Science 15.670 25,680

Alaska Subsistence Management 15.636Alaska Department of Fish and Game 170007716 15,894

Assistance to State Water Resources Research Institutes 15.805 86,935 Blue & Fin Whale Tagging Analyses and Publications in Support of Marine Mammal Monitoring Across Multiple Navy Training Areas in Southern California 15.000 HDR One Company 1000300001166 57,143 Bureau of Ocean Energy Management (BOEM) Environmental Studies (ES) 15.423

San Diego State University Foundation SA0000494 23,312

Bureau of Ocean Energy Management (BOEM) Environmental Studies (ES) 15.423

University of California at Santa Cruz

A15-0068-S003-S0184297 (98)

Bureau of Ocean Energy Management (BOEM) Environmental Studies (ES) 15.423 81,008 Cooperative Ecosystem Studies Units 15.678 323,909 Cooperative Landscape Conservation 15.669 5,297 Cooperative Research and Training Programs Resources of the National Park System 15.945 143,655 704,858 Cooperative Research Units 15.812 1,975,814 Cultural and Paleontological Resources Management 15.224 60,750 Earthquake Hazards Program Assistance 15.807 84,465 Environmental Quality and Protection 15.236 7,686 10,093 Fish and Wildlife Coordination and Assistance 15.664 66,096 Fish and Wildlife Management Assistance 15.608 59,081 Fish, Wildlife and Plant Conservation Resource Management 15.231 766,959 Forests and Woodlands Resource Management 15.233 (241) Genetic Connectivity and Diversity among Bighorn Sheep in the Northern Peninsular Ranges and southern Mojave Desert 15.000 17,459 Gulf of Mexico Passive Acoustic Monitoring Program 15.000 HDR One Company 1000300001059 153,168 Interactive Effects of Predators, Habitat, and Livestock Presence on Sage-grouse Demography and Seasonal Habitat Use in Wyoming 15.000 58,876 Migratory Bird Monitoring, Assessment and Conservation 15.655

High Desert Partnership 2018-3063 4,098

National Climate Change and Wildlife Science Center 15.820 14,601 128,418 National Cooperative Geologic Mapping 15.810 16,067

National Fish and Wildlife Foundation 15.663National Fish and Wildlife Foundation 0206.17.058208 196,600

(31)





Number

Passed through to

Subrecipients Total

Expenditures National Land Remote Sensing Education Outreach and Research 15.815 AmericaView AV18-OR-01 3,524 Plant Conservation and Restoration Management 15.245 10,643 PNW Terrestrial AIM Vegetation Sampling for BLM for the Eagle Lake - Applegate California BLM District in 2019. 15.000 224,727 231,227 PNW Terrestrial AIM Vegetation Sampling for BLM for the Twin Falls, Idaho BLM District in 2019. 15.000 382,648 389,157 PNW Terrestrial AIM Vegetation Sampling for BLM in OR and WA, 2019 and 2020 field seasons. 15.000 170,493 Relating Aleutian Tern Colony Declines in Alaska to Population Trends in the Russian Far East 15.000 11,758 Research Grants (Generic) 15.650 676

Sagebrush State and Transition Model Mapping Test 15.000 Nature ConservancyORFO-10/26/15-01sb (145)

State Wildlife Grants 15.634Alaska Department of Fish and Game 19-093 15,207

State Wildlife Grants 15.634Alaska Department of Fish and Game CT 170007859 24,349

State Wildlife Grants 15.634Oregon Dept. of Fish & Wildlife 426-18 9,450

Subsistence Salmon Network in Bristol Bay, AK: A Collaborative Project with Alaska Department of Fish and Game 15.000

Alaska Department of Fish and Game 19-111 5,847

Subsistence salmon networks in Yukon River communities 15.000

Alaska Department of Fish and Game 19-057 8,662

Toward Near Real-time Monitoring and Characterization of Land Surface Change for the Conterminous US 15.000 Texas Tech University 21H092-01 3,360 U.S. Geological Survey_ Research and Data Collection 15.808 195,642 USGS IPA Cascadia mapping 15.000 62,079 VAR-FED VMRC 15.000 19,951 Vya Juniper Removal 15.000 78,090 Wildland Fire Research and Studies 15.232 31,359 244,177 Wildlife Resource Management 15.247 14,378

Department of the Interior Total 804,676 6,587,224

Department of TransportationA Framework to Evaluate Causes and Effects of Truck Driver At-Fault Crashes in Oregon 20.000

Oregon Dept. of Transportation 30530-18-04 71,921

Air Transportation Centers of Excellence 20.109 50,747

ARA Performance Specifications 20.000Applied Research Associates, Inc. S-001986.01.OSU 1,850

ASSURE COE task order: Kickoff meeting 20.000 10,000 Automated Landslide "Hot Spot" Identification Tool for Optimized Climate Change and Seismic Resiliency 20.000

Oregon Dept. of Transportation 30530-18-01 61,295 169,457

BICYCLE DETECTION AND FEEDBACK ASSESSMENT 20.000


BRIDGE DECK ASPHALT CONCRETE PAVEMENT ARMORING 20.000


Cascadia Lifelines Research Consortium Public Membership 20.000 33,205

(32)





Number

Passed through to

Subrecipients Total

Expenditures Coastal Landslide and Bluff Retreat Monitoring for Climate Change Adaptation and Targeted Risk Assessment 20.000


Constructing High Performance Asphalt Pavements by Improving In-Place Pavement Density 20.000


Cyclic Response of Young Silt and Clay, Salt Creek Bridge, OR 153 20.000


Determining Post-Blast Liquefaction Strength of Silt 20.000Oregon Dept. of Transportation 30530-18-11 12,000

Development of a Balanced Mix Design Method in Oregon 20.000


DEVELOPMENT OF TITANIUM SEISMIC RETROFITS FOR DEFICIENT CONCRETE COLUMNS 20.000


Effects of Diatomaceous Silt on Driven Pile Foundations 20.000

Oregon Dept. of Transportation 30530 18-07 14,084

Field Implementation of Phase Change Materials (PCMs) to Mitigate Ice Formation on Concrete Airport Taxiways and Aprons 20.000 Purdue University 4108-82481 51,769 GTFS-ride: Transit Ridership Data Standard Ecosystem Development 20.000


Highway Research and Development Program 20.200National Academy of Sciences SUB0001074 11,556

Highway Research and Development Program 20.200Portland State University 208MON643 1,906

Highway Research and Development Program 20.200University of Wisconsin - Madison 739K712 8,444

Impact of Use of Portland-Limestone Cement on Concrete Performance as Plain or Reinforced Material 20.000

California Department of Transportation 65A0677 155,868

IMPLEMENTATION OF ODOT TACK COAT TECHNOLOGIES AND PROCEDURES TO IMPROVE LONG-TERM PAVEMENT PERFORMANCE 20.000


Improving Constructability and Durability of Concrete Pavements 20.000


Material Characterization of Geogrids from Oregon's Oldest Geosynthetic-Reinforced MSE Wall 20.000


Modeling and validation of standards for a sleeper compartment on accessible passenger rail vehicles 20.000

National Academy of Sciences SUB0000855 14,933

Nonlinear Time History Analysis Accuracy with a Focus on Column Plasticity and Cyclic Degradation 20.000

California Department of Transportation 65A0679 16,043 114,564

Phase III Testing for Wheeled Mobility Device Containment on Passenger Rail Cars 20.000 11,775

Physics-based modeling of rumble strip noise 20.000Oregon Dept. of Transportation 30530-19-11 81,059

Project Progress Tracking using LIDAR and 4D Information Models 20.000

Oregon Dept. of Transportation 30530 18-03 29,392

Speed Variation and Safety in Work Zones 20.000Oregon Dept. of Transportation 30530-19-10 57,830

Subcontract - Improving Specifications to Resist Frost Damage in Modern Concrete Mixtures (Part II) 20.000

Oklahoma State University

1-552974-01 /P0040533 137,167

Turbulent Flame Speed of Conventional and Alternative Jet Fuels Project 20.000 29,395

(33)





Number

Passed through to

Subrecipients Total

Expenditures

UAS LIDAR Proof of Concept at Spangler Landslide 20.000Oregon Dept. of Transportation 30530-19-08 19,996

University Transportation Centers Program 20.701University of Washington

BPO8248/UWSC8230 6,658


UWSC10003/BPO26174 51,151


UWSC10004/BPO26176 55,347


UWSC10005/BPO26177 68,260


UWSC10007/BPO26182 21,887


UWSC10009/BPO26193 16,809


UWSC10010/BPO26196 10,231


UWSC10357/BPO 30018 5,132


UWSC10358/BPO30020 10,000


UWSC10562/BPO32516 8,605


UWSC10563/BP035916 1,386


UWSC10564/BPO35918 1,906


UWSC10576/BPO35917 29,999


UWSC10577/BPO35919 26,119

WO31 - TOCS MicroMain Integration 20.000Oregon Dept. of Transportation 26828-031 28,792

Work Zone Intrusion Alert Technologies Assessment and Practical Guidance 20.000

Oregon Dept. of Transportation 30530-16-02 (832)

Writing Standard Testing Procedures for the First Tier of Durability Specifications that will be compliant with the AASHTO Performance Related Specifications (PRS) PP84 and Performance Related Specifications (PRS) for Use by FHWA at the Turner Fairbanks 20.000

SES Group & Associates LLC 17-04 (1)

Department of Transportation Total 77,338 1,840,463

Department of Veterans AffairsVeteran's Economic Burden for Healthcare Under VA and non-VA Health Plan Coverage 64.000

US Department of Veteran Affairs PO 648-D93059 5,000

Environmental Protection Agency

Creation of an integrated mitigation site and map viewer on the Oregon Explorer portal, ORWAP update, and statewide LWI Mapping. 66.000

Oregon Division of State Lands A191222019 20,510

Great Lakes Program 66.469Loyola University Chicago 516995-OSU 4,789

(34)





Number

Passed through to

Subrecipients Total

Expenditures Modeling of Multi-Pollutant Profiles with Applications to RIOPA Study Data and to Indicators of Adverse Birth Outcomes Using Data from the UCLA Environment and Pregnancy Outcome Study (EPOS) 66.000 Health Effects Institute

4783-RFA09-1/09-4 (29)

Office of Research and Development Consolidated Research/Training/Fellowships 66.511 19,792 Puget Sound Action Agenda: Technical Investigations and Implementation Assistance Program 66.123

Puget Sound Partnership 2018-19 130,035

Regional Wetland Program Development Grants 66.461 University of Florida UFDSP00012054 33,366 Research, Development, Monitoring, Public Education, Outreach, Training, Demonstrations, and Studies 66.716 203,639 Science To Achieve Results (STAR) Fellowship Program 66.514 17,072 Science To Achieve Results (STAR) Research Program 66.509 154,124

Environmental Protection Agency Total - 583,298

Institute of Museum and Library Services National Leadership Grants 45.312 Indiana University IN-4370124-OSU 15,412

National Aeronautics and Space AdministrationAcoustic Emission-Based Health Monitoring of Composite Aerospace Structures 43.000 University of Utah 10028917 (686)

Aeronautics 43.002Arizona State University 16-883 51,299

Aeronautics 43.002Baylor College of Medicine

NCC 9-58-329 /CA04201 (7,139)

Aeronautics 43.002 305,919 Assessing the Capabilities of the Ocean Radiometer for Carbon Assessment (ORCA) for the PACE Mission 43.000 11,154 Atmospheric Modeling in Support of a Mission to Gale Crater on Mars - the Red Dragon Project 43.000 Jet Propulsion Lab 1564595 50,404 Discovering a Decade of Coastal Winds from Ocean Wind Scatterometers 43.000 Jet Propulsion Lab 1531731 66,741 Feasibility of estimating sea surface height and upper-ocean vertical velocity from surface ocean currents 43.000 Jet Propulsion Lab 1609395 74,724 Landing Site Characterization for the Mars 2020 Rover Mission: Atmospheric Modeling for EDL 43.000 Jet Propulsion Lab 1512906 37,099 Maximizing Utility of Remote Sensing Data for Water Quality Monitoring and Resources Management in California's Water Systems 43.000 Jet Propulsion Lab 1576067 91,278 Mesoscale and LES Modeling for Atmosphere Characterization for the InSight Mission 43.000 Jet Propulsion Lab 1495237 (36)

MT Data Acquisition Services for NASA 43.000

Incorporated Research Institutions for Seismology

SU-19-1101-05-OSU 29,707 47,942

NASA Earth Science Education Collaborative 43.000

Institute for Global Environmental Strategies Not Available 3,126

Science 43.001

Bay Area Environmental Research Institute 2018-2683 134,884

Science 43.001 East West Center HC13373 58,213 Science 43.001 East West Center HC13704 5,292

(35)





Number

Passed through to

Subrecipients Total

Expenditures Science 43.001 Harvard University 130785-5086565 4,325

Science 43.001

Institute for Global Environmental Strategies 18I004 132,753

Science 43.001 Jet Propulsion Lab 1608320 13,487 Science 43.001 Jet Propulsion Lab 1612966 5,220 Science 43.001 Jet Propulsion Lab 1621748 48,183 Science 43.001 Princeton University SUB0000206 16,380 Science 43.001 Smithsonian Institute TM9-20002X 3,904

Science 43.001University of Maryland, Baltimore NASA0003-01 83,447

Science 43.001University of South Florida

NNX14AP62A: Sub 2500-1616-00-1 106,280

Science 43.001University of Washington

UWSC10734/BPO 34586 91,751

Science 43.001WGBH Educational Foundation 2018-1996 163,569

Science 43.001WGBH Educational Foundation K187348 77,937

Science 43.001


Science 43.001


Science 43.001


Science 43.001 457,805 4,866,460 Space Operations 43.007 7,841 Space Technology 43.012 60,690 Support for Multi-angle Imaging SpectroRadiometer (MISR) Science Team Activities 43.000 Jet Propulsion Lab 1540933 7,413 The Phytoplankton Carbon Project 43.000 200 Wind stress climatology and anomalies along the U.S. East Coast from Coastal QuikSCAT v4.0 43.000 Jet Propulsion Lab 1624044 24,074

National Aeronautics and Space Administration Total 487,512 6,824,679

National Endowment for the Humanities Promotion of the Humanities Research 45.161 University of Nebraska 25-1620-0002-005 (70)

National Science Foundation

Assignment of Dr. Robert Stone to the position of Division Director, Division of Civil, Mechanical and Manufacturing Innovation (CMMI), Directorate for Engineering (ENG) 47.000 151,042

Biological Sciences 47.074Carnegie Institution of Washington 6-10548-02 (12,618)

Biological Sciences 47.074Cold Spring Harbor Lab

52930113///513 /PO 920802-SV 241,986

Biological Sciences 47.074 University of Oregon 2000J0B 24,338

Biological Sciences 47.074 Yale UniversityGR103815 (CON-80001381) 55,761

Biological Sciences 47.074 1,391,854 7,602,646

(36)





Number

Passed through to

Subrecipients Total

Expenditures Coastal SEES Fog & Redwoods - OSU Ocean Component 47.000

University of California at Santa Cruz TBD 17,088

Computer and Information Science and Engineering 47.070Portland State University 100013 32,444

Computer and Information Science and Engineering 47.070 153,201 3,634,128 Continental Crust Formation at intraoceanic arc: foundations, inception, and early evolution 47.000

Consortium for Ocean Leadership PO T351A11 2

Education and Human Resources 47.076

American Association for the Advancement of Science 2425-A 26,683

Education and Human Resources 47.076

American Mathematical Association of Two-Year Colleges PS-4 7,050

Education and Human Resources 47.076Association of Science-Technology Centers DRL-1612739 72,136

Education and Human Resources 47.076Astronomical Society of the Pacific 2018-03-76-OSU 90,551

Education and Human Resources 47.076Gulf of Maine Research Institute 30-LVAISL-OSU 43,584

Education and Human Resources 47.076 New Knowledge 1612729 88,077

Education and Human Resources 47.076Oregon Museum of Science and Industry

ICA DierkingPO#98634 7,634

Education and Human Resources 47.076 Pratt Institute 1612719 123,967

Education and Human Resources 47.076Swinomish Indian Tribal Community 2019-2501 5,599

Education and Human Resources 47.076Swinomish Indian Tribal Community

420 20 43 00 NSF AISL 290

Education and Human Resources 47.076University of California Berkeley 00009327 24,728

Education and Human Resources 47.076 University of Georgia SUB00001465 12,131

Education and Human Resources 47.076University of Washington

UWSC7971/BPO2762 125,807

Education and Human Resources 47.076 Willamette UniversityWU-NSFDUE-01-2015 5,327

Education and Human Resources 47.076 160,596 4,736,769

Engineering Grants 47.041Colorado State University G-00973-1 86,922 148,380

Engineering Grants 47.041 CSD-Nano 2013-1389 (897)

Engineering Grants 47.041

Rutgers, The State University of New Jersey 0391 19,084

Engineering Grants 47.041University of Colorado Boulder

1553393 / PO# 1000568175 49,652

Engineering Grants 47.041 University of Virginia GA11366.160195 37,385

Engineering Grants 47.041University of Washington

UWSC8669/BPO 10063 174,170

Engineering Grants 47.041University of Washington

UWSC9420/BPO 18494 21,706

Engineering Grants 47.041 404,303 6,722,691 Geosciences 47.050 Columbia University 6 (GG009393) 240,575

(37)





Number

Passed through to

Subrecipients Total

Expenditures

Geosciences 47.050Consortium for Ocean Leadership SA 12-11 2,296,256

Geosciences 47.050Consortium for Ocean Leadership

SA 12-11/WBS 8.2.6.1.8 (577)

Geosciences 47.050Consortium for Ocean Leadership SA12-11 191,253

Geosciences 47.050Consortium for Ocean Leadership T340B11 1

Geosciences 47.050

Consortium of Univ for the Advncmt of Hydrologic Sciences, Inc. 1338606-18-02 7,225

Geosciences 47.050

Incorporated Research Institutions for Seismology 05-OSU-SAGE 309,433 533,127

Geosciences 47.050

Incorporated Research Institutions for Seismology

SU-19-1001-05-OSU 32,733 175,057

Geosciences 47.050 Princeton University SUB0000235 30,639 Geosciences 47.050 SRI International 119-000243 19,146

Geosciences 47.050 University of AlaskaPO FP40101 / UAF 13-0131 7

Geosciences 47.050University of Alaska - Fairbanks

UAF 18-0071 / P0521787 26,264

Geosciences 47.050 University of Arizona4010190 / PO 241794 41,935

Geosciences 47.050University of California at Santa Cruz

A17-0931-S001-P0690785 25,459

Geosciences 47.050 University of HawaiiMA 1390 /PO# Z10181865 35,268

Geosciences 47.050 University of HawaiiMA1125/MA130035/PO Z10048082 9,720

Geosciences 47.050University of Texas at Austin UTA17-000311 156,685

Geosciences 47.050 University of Utah10037588-OR / PO U000192190 83,134

Geosciences 47.050

Woods Hole Oceanographic Institution

A101401: OCE-1836985 (CA) 35,279

Geosciences 47.050

Woods Hole Oceanographic Institution

A101404 OCE-1743430 (CA) 4,126,492

Geosciences 47.050 301,242 39,902,817

Mathematical and Physical Sciences 47.049American Physical Society EP3-003-2018 572

Mathematical and Physical Sciences 47.049California Institute of Technology 7S-1098591 4,140

Mathematical and Physical Sciences 47.049 University of Oregon 2003U0A (653) Mathematical and Physical Sciences 47.049 630,988 3,882,271 NSF IPA Agreement: Dr. Weng-Keen Wong 47.000 47,486 Office of Integrative Activities 47.083 University of Missouri C00060846-3 16,898

(38)





Number

Passed through to

Subrecipients Total

Expenditures

Social, Behavioral, and Economic Sciences 47.075Montana State University G116-19-W7346 10,922

Social, Behavioral, and Economic Sciences 47.075 124,057 The effects of shortened school years on school district finances, school programs, and principal and teacher perceptions of school climate 47.000

American Educational Research Association 2018-2566 3,182

National Science Foundation Total 3,471,272 76,313,958

Nuclear Regulatory CommissionMaintenance and Development of the VARSKIN 5 Computer Code 77.000 52,625 U.S. Nuclear Regulatory Commission Scholarship and Fellowship Program 77.008 489,466

Nuclear Regulatory Commission Total - 542,091

Total Research and Development Cluster 15,545,787 196,111,005

Childcare and Development Fund

Department of Health and Human Services Child Care and Development Block Grant 93.575Oregon Dept. of Education 10506 (271)

Child Care and Development Block Grant 93.575Oregon Dept. of Education 10854 90,995

Child Care and Development Block Grant 93.575Oregon Dept. of Education 10948 110,130

Total Childcare and Development Fund - 200,854

Fish and Wildlife

Department of the Interior Wildlife Restoration and Basic Hunter Education 15.611Alaska Department of Fish and Game

CT 160001029/ 160001422 101

Wildlife Restoration and Basic Hunter Education 15.611Alaska Department of Fish and Game CT 180000933 29,706

Wildlife Restoration and Basic Hunter Education 15.611Oregon Dept. of Fish & Wildlife 080-16 96,401





Wildlife Restoration and Basic Hunter Education 15.611Texas Parks and Wildlife 499990 / 490790 60,562

Wildlife Restoration and Basic Hunter Education 15.611Wyoming Game and Fish Department 2852 50,925

Total Fish and Wildlife Cluster - 637,784

Highway Planning and Construction

Department of Transportation Highway Planning and Construction 20.205Oregon Dept. of Transportation 30530-17-01 (884)

Highway Planning and Construction 20.205Oregon Dept. of Transportation 30530-18-02 19,762 163,290

(39)





Number

Passed through to

Subrecipients Total

Expenditures

Highway Planning and Construction 20.205Oregon Dept. of Transportation 30530-19-01 74,537




Highway Planning and Construction 20.205Oregon Dept. of Transportation 31867-01 13,291

Highway Planning and Construction 20.205Oregon Dept. of Transportation RS-18-77-01 132,223

Highway Planning and Construction 20.205Oregon Dept. of Transportation RS-19-77-01 159,070

Highway Planning and Construction 20.205University of California Berkeley 00008910/30286 (8,706)

Total Highway Planning and Construction Cluster 19,762 597,003

SNAP

Department of AgricultureState Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561

Oregon Department of Human Services 146694 (87)

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561

Oregon Department of Human Services 152303 (25,550) 2,160,279


Oregon Department of Human Services 152303 Amd 2 91,045 5,503,746


Oregon Department of Human Services 152781 And 1 18,250


Oregon Department of Human Services 158399 50,731


Oregon Department of Human Services TBD 52,550

Total SNAP Cluster 65,495 7,785,469

Special Education (IDEA)

Department of Education Special Education Grants to States 84.027Lebanon Community School District 2017-2038 - 7,024

(40)





Number

Passed through to

Subrecipients Total

Expenditures TRIO

Department of Education TRIO_Student Support Services 84.042 498,783 TRIO_Upward Bound 84.047 266,376

Total TRIO Cluster - 765,159

Other

Agency for International Development Cooperative Development Program (CDP) 98.002Arizona State University 15-652 - 157,541

Department of Agriculture Agricultural Research Basic and Applied Research 10.001USDA - Ag Research Service 59-5090-8-001 4,200

Agricultural Research Basic and Applied Research 10.001 103,559 10.001 CFDA Subtotal 107,759

Agriculture and Food Research Initiative (AFRI) 10.310 66,992 Beginning Farmer and Rancher Development Program 10.311 Organic Seed Alliance 2017-1005 4,366 Beginning Farmer and Rancher Development Program 10.311 3,787 40,754

10.311 CFDA Subtotal 45,120

Child and Adult Care Food Program 10.558Oregon Dept. of Education 02-15002 31,776

Cooperative Extension Service 10.500Colorado State University G-79535-01 1,592

Cooperative Extension Service 10.500Kansas State University S17119 2,965

Cooperative Extension Service 10.500Kansas State University S19117 8,148

Cooperative Extension Service 10.500Kansas State University

S19153 / PO-19-00144788 4,161

Cooperative Extension Service 10.500University of Minnesota 0001645398 2,900

Cooperative Extension Service 10.500Washington State University 108815-G003706 8,347

Cooperative Extension Service 10.500Washington State University 134194 G004015 5,992

Cooperative Extension Service 10.500 5,552,548 10.500 CFDA Subtotal 5,586,653


University of California Agriculture & Natural Resources SA14-2309-03 29,933

Crop Protection and Pest Management Competitive Grants Program 10.329 272,439

10.329 CFDA Subtotal 302,372 Developing Adapted Varieties and Optimal Management Practices for Quinoa in Diverse Environments 10.000

Washington State University C#20718 (1,750)

Don't Pack a Pest Campaign 10.000 23,155 Enhancing outreach for the USDA Northwest Climate Hub 10.000 31,195


(41)





Number

Passed through to

Subrecipients Total

Expenditures Environmental Quality Incentives Program 10.912 KCoe Isom LLP 18-2126 28,759 Environmental Quality Incentives Program 10.912 10,267

10.912 CFDA Subtotal 39,026 Forestry Research 10.652 15,870 Grants for Agricultural Research, Special Research Grants 10.200


UWSC8830 BPO 12436 4,195

Higher Education - Multicultural Scholars Grant Program 10.220 108,877 Inner City Youth Institute 10.000 15,737

Integrated Programs 10.303 University of GeorgiaRC300-326/S000744 1,909

Integrated Programs 10.303 University of Maryland 52301-Z5671002 9,552

Integrated Programs 10.303Washington State University 123484_G003397 800

10.303 CFDA Subtotal 12,261 National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program 10.328 233,652 431,461 Oregon Explorer Western Wildfire Risk Assessment Project 10.000

Oregon Dept. of Forestry 2015-1549 32,433

Oregon Forest Pest Detector 10.000Oregon Dept. of Forestry 2016-1951 27,057

10.000 CFDA Subtotal 59,490 Organic Agriculture Research and Extension Initiative 10.307 Lincoln University 2017-3628 2,458 Organic Agriculture Research and Extension Initiative 10.307 Purdue University 8000064233-AG 46,145

Organic Agriculture Research and Extension Initiative 10.307The Organic Center for Education & Promotion 17-1080 1,952

Organic Agriculture Research and Extension Initiative 10.307 Tuskegee University 22091 410 62112 15,228

Organic Agriculture Research and Extension Initiative 10.307University of Illinois, Urbana-Champaign 088736-16613 389

Organic Agriculture Research and Extension Initiative 10.307 Utah State University 14082303-280 16,203 Organic Agriculture Research and Extension Initiative 10.307 Utah State University 201160-457 3,687

Organic Agriculture Research and Extension Initiative 10.307Washington State University 126216-G003508 32,508

Organic Agriculture Research and Extension Initiative 10.307 196,853 10.307 CFDA Subtotal 315,423

Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers 10.443 16,897 28,439 Plant and Animal Disease, Pest Control, and Animal Care 10.025 196,808

Regional Conservation Partnership Program 10.932Pinchot Institute for Conservation 2016-1196 5,594

Research Natural Areas Establishment and Management 10.000 18,924 Risk Management Education Partnerships 10.460 42,963 Soil and Water Conservation 10.902 91,075


Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture ODA 3514 GR (360)

(42)





Number

Passed through to

Subrecipients Total

Expenditures






Specialty Crop Block Grant Program - Farm Bill 10.170Oregon Dept. of Agriculture ODA-3699-GR 39,120


Summer Food Service Program for Children 10.559Oregon Dept. of Education 1815001 1,825

Supplemental Nutrition Assistance Program-Education (SNAP-Ed) FY16 10.000

Oregon Department of Human Services 145990 23,582

Sustainable Agriculture Research and Education 10.215 University of Wyoming 1002627 (1,252) Sustainable Agriculture Research and Education 10.215 University of Wyoming 1003285 291 Sustainable Agriculture Research and Education 10.215 Utah State University 150893-00001-183 10,777 Sustainable Agriculture Research and Education 10.215 Utah State University 200592-379 12,872 Sustainable Agriculture Research and Education 10.215 Utah State University 201207-584 22,507 Sustainable Agriculture Research and Education 10.215 1,887

10.215 CFDA Subtotal 47,082 Technical Agricultural Assistance 10.960 2,668 149,181 Value-Added Producer Grants 10.352 University of Vermont 32499SUB52482 15,782 Wholesale Farmers and Alternative Market Development 10.164 23,307 Willamette National Forest Recreation Study and Analysis Project 10.000 47,738

Department of Agriculture Total 257,004 8,021,918

Department of CommerceExternal Coordinator for the Center for Independent Experts 11.000

NTVI Communications, Inc.

SA-14-NOAA-02 Task Order 01 28,159

Marine Sanctuary Program 11.429 54,293 Sea Grant Support 11.417 1,529,978

Department of Commerce Total - 1,612,430

Department of Defense Roadmap Preparation for NAVAIR 12.000 (79)

Techniques and Tools for De-Bloating Containers 12.000University of Wisconsin - Madison 785K864 119,048

Department of Defense Total - 118,969

Department of EducationGaining Early Awareness and Readiness for Undergraduate Programs 84.334 750,110 2,935,903 Migrant Education College Assistance Migrant Program 84.149 480,331 Migrant Education High School Equivalency Program 84.141 470,347

Migrant Education State Grant Program 84.011Forest Grove School District No. 012 2,584

Migrant Education State Grant Program 84.011Forest Grove School District No. 13 10,000

(43)





Number

Passed through to

Subrecipients Total

Expenditures

Migrant Education State Grant Program 84.011Oregon Dept. of Education 11687 / 50228 159,718

Migrant Education State Grant Program 84.011Oregon Dept. of Education 11738 / 50229 82,995

84.011 CFDA Subtotal 255,297 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 84.367

Western Oregon University TRSUB16.12 (113)

Department of Education Total 750,110 4,141,765

Department of Energy

Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance 81.117 392,962 Environmental Monitoring/Cleanup, Cultural and Resource Mgmt., Emergency Response Research, Outreach, Technical Analysis 81.214


Environmental Monitoring/Cleanup, Cultural and Resource Mgmt., Emergency Response Research, Outreach, Technical Analysis 81.214


81.214 CFDA Subtotal 13,111 National Defense Science and Engineering Graduate Fellowship - Daniel Watkins 81.000

American Society for Engineering Education Not Available 16,434

National Defense Science and Engineering Graduate Fellowship - Hannah Rolston 81.000

American Society for Engineering Education Not Available 18,621

National University Consortium Joint Appointment 81.000Idaho National Laboratory 161644-0002 55,411

81.000 CFDA Subtotal 90,466 Nuclear Energy Research, Development & 81.121 857,132

Nuclear Security Education Transfer Package 81.000DOE Pacific Northwest National Lab 419874 22,075

Transitioning the OSU Nuclear Security Education Program into an E-Campus Delivery Format 81.000


81.000 CFDA Subtotal 103,843 Department of Energy Total - 1,457,514

Department of Health and Human ServicesAssistance Programs for Chronic Disease Prevention and Control 93.945


Food and Drug Administration Research 93.103 23,808 Indigenizing the BRACE framework: Swinomish climate change and health 93.000

Swinomish Indian Tribal Community 2018-2527 3,687

State Partnership Grant Program to Improve Minority Health 93.296

Willamette Neighborhood Housing Services 2015-802 147

Department of Health and Human Services Total - 59,157

Department of Justice Juvenile Mentoring Program 16.726 National 4-H Council 2017 NMP7 (3,162) Juvenile Mentoring Program 16.726 National 4-H Council 2018 NMP 8 36,525 Juvenile Mentoring Program 16.726 National 4-H Council 4H NMP 9 15,307 Juvenile Mentoring Program 16.726 National 4-H Council 4HNMP Yr8 11,340 Juvenile Mentoring Program 16.726 National 4-H Council 4HNMP Yr9 3,592

Department of Justice Total - 63,602

(44)





Number

Passed through to

Subrecipients Total

Expenditures

Department of the InteriorContinued Computer Support for High Resolution Regional Climate Data 15.000 11,280 Cooperative Research and Training Programs Resources of the National Park System 15.945 291,331

CVA Outreach, Education, and Maintenance Training 15.000Oregon State Marine Board 1719-FAC-001 142,903

Forests and Woodlands Resource Management 15.233 11,999 Recreation Resource Management 15.225 1,371 Secure Rural Schools and Community Self-Determination 15.234 3,377

U.S. Geological Survey_ Research and Data Collection 15.808 16,749 Youth Engagement, Education, and Employment 15.676 9,792

Department of the Interior Total - 488,802

Department of Transportation National Priority Safety Programs 20.616Oregon Dept. of Transportation M9MT-18-50-02 40,421

National Priority Safety Programs 20.616Oregon Dept. of Transportation M9MT-19-50-02 26,652


Recreational Trails Program 20.219Oregon Dept. of Parks & Recreation RT16-027 67,691

TLE Modernization 20.000Oregon Dept. of Transportation 26828-030 144,871


BPO8248/UWSC8230 1,333


UWSC10006/BPO26179 83,913


UWSC10011/BPO26198 9,839


UWSC10012/BPO26202 25,077


UWSC10360 /BPO 30039 469


UWSC10361/BPO30040 7,731


UWSC10362 / BPO 30043 9,996


UWSC10385/BPO30234 9,953


UWSC10479 / BPO31501 7,499


WO32 - Major Incident 20.000Oregon Dept. of Transportation 26828-032 53,243

Department of Transportation Total - 488,688

Department of Veterans AffairsIIR 17-039 Improving Veteran Health by Increasing Dental Stewardship of Antibiotics and Opioids 64.000 - 18,502

Environmental Protection AgencyOffice of Research and Development Consolidated Research/Training/Fellowships 66.511 50,141

(45)





Number

Passed through to

Subrecipients Total

Expenditures

Pollution Prevention Grants Program 66.708Oregon Dept. of Environmental Quality 001-18 54,331

Regional Wetland Program Development Grants 66.461 Willamette Partnership 6565 (2,113)

Research, Development, Monitoring, Public Education, Outreach, Training, Demonstrations, and Studies 66.716 22,246 935,062

Environmental Protection Agency Total 22,246 1,037,421

National Aeronautics and Space Administration Education 43.008 31,245 472,077

L'Space Evaluation 43.000Arizona State University PO-19-00043025 29,021

Science 43.001University of Washington

UWSC8887/BPO13185 96,450 98,622

Science 43.001WGBH Educational Foundation K201700542 (6,153)

Science 43.001 129,136 43.001 CFDA Subtotal 221,605

National Aeronautics and Space Administration Total 127,695 722,703

National Endowment for the HumanitiesPromotion of the Humanities Office of Digital Humanities 45.169 - 34,578

Nuclear Regulatory CommissionU.S. Nuclear Regulatory Commission Scholarship and Fellowship Program 77.008 - 99,500

Vietnam Education Foundation Fellowship Program 85.802 - 3,920

Total Other Cluster 1,157,055 18,527,010

Total Federal Expenditures 16,788,099 421,411,684

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OREGON STATE UNIVERSITY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


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NOTE 1 BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Oregon State University under programs of the federal government of the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Oregon State University, it is not intended to and does not present the financial positon, changes in net position, or cash flows of Oregon State University.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Oregon State University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

NOTE 3 FEDERAL STUDENT LOAN PROGRAMS

The federal student loan program listed subsequently is administered directly by Oregon State University, and balances and transactions relating to these programs are included in Oregon State University's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2019 consists of:

Program Title CFDA Number Amount Outstanding Perkins Loans 84.038 $23,297,000


OREGON STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS


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Section I – Summary of Auditors’ Results

Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? yes no

Significant deficiency(ies) identified? yes none reported

3. Noncompliance material to financial statements noted? yes no

Federal Awards

1. Internal control over major federal programs:

Material weakness(es) identified? yes no

Significant deficiency(ies) identified? yes none reported

2. Type of auditors’ report issued onCompliance for major federal programs: Unmodified

3. Any audit findings disclosed that are requiredto be reported in accordance with2 CFR 200.516(a)? yes no

Identification of Major Federal Programs

CFDA Number(s) Name of Federal Program or Cluster

84.007, 84.003, 84.038, Student Financial Assistance Cluster 84.063, 84.268, 84.379, 84.408

Dollar threshold used to distinguish between Type A and Type B programs: $3,000,000/$750,000

Auditee qualified as low-risk auditee? yes no




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Section I – Summary of Auditors’ Results (Continued) Required Reporting for the Pell Grant Program:

Sample Description OPEID

Students Receiving

Pell (#)

Pell Disbursed

($)

Students Receiving

Pell (#)Pell Disbursed

($)Eligibility 00321000 21 90,868$ 7,249 29,386,206$ Return of Title IV (1) 00321000 26 78,977 716 1,916,950 Reporting to COD - 25 Disbursements (2) 00321000 13 38,884 7,249 29,386,206

(1) Overlap of Students tested for Eligibility 00321000 2 7,245 716 1,916,950

SamplePopulation From Which the

Sample was Drawn

(2) All 13 students tested for Reporting to COD were also tested for Eligibility Required Reporting for the Direct Loan Program:

Sample Description OPEID

Students Receiving

Direct Loan (#)

Direct Loan Disbursed

($)

Students Receiving

Direct Loan (#)

Direct Loan Disbursed ($)

Eligibility 00321000 36 383,355$ 12,577 137,888,710$ Return of Title IV (1) 00321000 36 259,681 877 6,201,589 Reporting to COD - 25 Disbursements (2) 00321000 10 41,989 12,577 137,888,710

(1) Overlap of Students tested for Eligibility 00321000 2 13,332 877 6,201,589

SamplePopulation From Which the

Sample was Drawn

(2) All 10 students tested for Reporting to COD were also tested for Eligibility Required Reporting for Findings:

Finding Number

Student Identifier OPEID

Pell Disbursed

($)

Pell Under-Payment

($)

Pell Over-Payment

($)


($)

Direct Loan

Under-Payment

($)

Direct Loan Over-Payment

($)2019-001 Student 1 00321000 1,524$ -$ -$ -$ -$ -$ Required Reporting for Instances of Non-Compliance Determined to be Immaterial:

Summary of Non-

ComplianceStudent Identifier OPEID

Pell Disbursed

($)

Pell Under-Payment

($)

Pell Over-Payment

($)


($)

Direct Loan

Under-Payment

($)

Direct Loan Over-Payment

($)2019-001 Student 1 00321000 1,524$ -$ -$ -$ -$ -$




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Section II – Financial Statement Findings

Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards.

Section III – Findings and Questioned Costs – Major Federal Programs

2019 – 001: Enrollment Reporting

Federal Agency: Department of EducationFederal Program: Student Financial Assistance Cluster CFDA Numbers: 84.063 – Federal Pell Grant Program Award Period: July 1, 2018 – June 30, 2019

Type of Finding:

Compliance, Other Matter Significant Deficiency in Internal Control Over Compliance

Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309, requires that enrollment status changes for students be reported to the National Student Loan Data System (NSLDS) within 30 days, or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status includes an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits.

Condition: During our testing of a sample of 40 students who had a change in enrollment status during the period under audit, we noted that one student’s social security number provided as a part of the submission roster was rejected by the National Student Clearinghouse (NSC), returned to the University in the transmission error report and was not resolved in a timely manner.

Questioned Costs: None

Context: Out of a statistically valid sample of 40 students selected for testing for the requirement noted above, we noted one exception as described above.

Cause: The reporting error was not corrected in a timely manner due to the Office of the Registrar not reviewing the specific transmission error report provided by the NSC.

Effect: The NSLDS was not updated with the student’s enrollment information, which can cause over-awarding should the student transfer to another institution or the student may not properly enter the repayment period.

Recommendation: We recommend that the University revise its procedures for monitoring and correcting the transmission error files that are returned by the NSC to ensure that corrections are made in a timely manner.

Views of responsible officials: There is no disagreement with this audit finding.


Finance & Administration Oregon State University 640 Kerr Administration Bldg. Corvallis, Oregon 97331

P 541-737-2447 F 541-737-3033 oregonstate.edu

November 14, 2019

Jean Bushong, Principal CliftonLarsonAllen, LLP 8390 E. Crescent Parkway Greenwood Village, CO 80111

Via email: [email protected]

Dear Ms. Bushong,

Oregon State University respectfully submits the following corrective action plan for the federal compliance audit for the audit period July 1, 2018 to June 30, 2019.

FINDINGS—FEDERAL AWARD PROGRAMS AUDITS

U.S. DEPARTMENT OF EDUCATION

2019-001 Student Financial Aid Cluster 84.063 – Federal Pell Grant Program

Recommendation: We recommend that the University revise its procedures for monitoring and correcting the transmission error files that are returned by the NSC to ensure that corrections are made in a timely manner.

Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Action taken in response to finding: The finding appeared because the National Student Clearinghouse does not deliver all errors consistently and some errors, including these, are not actually delivered to the institution; the institution must go look for these particular errors. The Office of the Registrar has set up a process to review both delivered errors and those requiring retrieval from the NSC website. In addition to the new process in the OtR, the University Registrar serves on the NSC Customer Advisory Committee and formally requested an improved delivery mechanism for the errors. As a result of this discussion, NSC has put on their internal roadmap to be ‘delivered in the near future’ (no timeframe attached) the following: “presenting all errors/warnings on a student at the same time”. We believe this solution should resolve the issue of not having active delivery of this error to the institution.

Name(s) of the contact person(s) responsible for corrective action: Keith Raab, Director of Financial Aid


mailto:[email protected]

Federal Compliance Audit Response, November 14, 2019 Page 2

Planned completion date for corrective action plan: The new monitoring and resolution plan is effective as of November 1, 2019.

If the Department of Health and Human Services has questions regarding this plan, please contact Keith Raab, Director of Financial Aid, at 541-737-3515.

Sincerely,

Michael J. Green Vice President for Finance & Administration / Chief Financial Officer

c.c.: Tim Rawal, Manager, CliftonLarsonAllen, LLPPatti Snopkowski, Chief Audit, Risk & Compliance Executive, Oregon State University Jon Boeckenstedt, Vice Provost for Enrollment Management, Oregon State University Heidi Sann, Associate Vice President for Finance & Controller, Oregon State University


Documents

TAB W FY2019 External Auditor Annual Report · January 23-24, 2020 Board of Trustees Meetings ... ty’s fundraising history last year with gifts totaling $144.5 million. This includes