2023 OSU Annual Financial

Oregon State University

2023 Annual Financial Report

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 70

1 | Oregon State University

Board of Trustees

(eﬀ ective as of June 30, 2023)

Kirk E. Schueler, Chair Bend, Oregon

Patricia M. Bedient, Vice Chair Sammamish, Washington

Rani N. Borkar Portland, Oregon

Julia A. Brim-Edwards Portland, Oregon

Darald W. Callahan San Rafael, California

Maria Chávez-Haroldson Corvallis, Oregon

Susan Clark Albany, Oregon

Román Hernández Portland, Oregon

A. Lamar Hurd Portland, Oregon

Julie Jones Manning Corvallis, Oregon

Preston Pulliams Jackson, Mississippi

Jax Richards Beaverton, Oregon

Inara Scott Eugene, Oregon

Jayathi Y. Murthy Corvallis, Oregon

(ex oﬃ cio, nonvoting)

Jackie Bangs, Secretary Corvallis, Oregon

Executive Oﬃ cers

(eﬀ ective as of June 30, 2023)

Jayathi Y. Murthy

President

Edward Feser

Provost and Executive Vice President

Scott Vignos

Vice President and Chief Diversity Oﬃ cer

Michael J. Green

Vice President for Finance and Administration

Irem Tumer

Vice President for Research

Steven Clark

Vice President for University Relations and Marketing

Andrew Ketsdever

Dean of Academic Aﬀ airs for OSU-Cascades

Scott Barnes

Vice President and Director of Intercollegiate Athletics

Rebecca Gose

General Counsel

Patricia Snopkowski

Chief Audit, Risk and Compliance Executive

2023 | Annual Financial Report | 1

OREGON’S STATEWIDE UNIVERSITY

Oregon 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 three universities in the nation with all four

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

2 | Oregon State University

MISSION

As a land grant institution committed to teaching, research,

outreach and engagement, Oregon State University pro-

motes economic, social, cultural and environmental progress

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 around the

world.

• Maintaining a rigorous focus on academic excellence, par-

ticularly in three signature areas: the science of sustainable

Earth ecosystems, health and wellness, economic prosper-

ity and social progress.

VISION

Leadership 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.

GOALS

Strategic 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

2023 | Annual Financial Report | 3

Message from

President Jayathi Y. Murthy

I am very pleased to have completed my ﬁ rst academic year as presi-

dent of Oregon State University and to report that OSU ended 2022-

23 in a strong ﬁ nancial position. The university experienced con-

tinued momentum in a number of important initiatives to advance

its land grant mission of teaching, research and community service

engagement. We were able to return to full on-campus operations

this year after signiﬁ cant challenges over the past two years navigat-

ing the COVID-19 pandemic. OSU continued its trajectory of positive

enrollment growth and increases in research funding while diligently

managing expenses.

Oregon State’s latest bond rating, reaﬃ rmed by Moody’s Investor

Services in conjunction with the publication of the updated higher

education rating methodology, remained Aa3 stable.

I am delighted to report that OSU continues its preeminence as

Oregon’s leading comprehensive public research university. Oregon

State was the largest university in the state for the ninth consecutive

year with 35,239 students enrolled for the 2022-23 academic year.

Students of color made up more than 29% of the university’s overall

enrollment, a 6.9% increase over the previous year. In Corvallis,

there were 23,592 students enrolled last fall. OSU-Cascades in Bend

enrolled a total of 1,271 students. OSU’s highly ranked Ecampus pro-

gram enrolled 10,376 distance students in 2022-2023, a rise of 6%

over the previous year. Oregon State also continues to be a school

of choice among Oregon residents. Oregonians made up 68.6% of

OSU’s Corvallis degree-seeking undergraduate enrollment and 77.8%

of OSU-Cascades’ overall enrollment. The university continues to

pursue an enrollment forecast that calls for steady modest growth

in Corvallis; 2,200 students at its OSU-Cascades campus in Bend by

2030; and 30,000 or more degree-seeking students enrolled online

through Ecampus by 2030.

Oregon State’s research enterprise continues to excel. In ﬁ scal year

2023, research awards and research-related revenues were $480

million and $12.9 million, respectively, totaling $493 million. This

represents an increase of over 30% compared to the corresponding

ﬁ scal year 2022 ﬁ gures. The university enjoys a strong reputation

to lead large, complex, multi-year federally funded infrastructure

projects, as evidenced by our success in navigating the pandemic

and weather events to build three 200-foot Regional Class Research

Vessels for the National Science Foundation. The university also is

leading construction of the PacWave wave energy testing facility oﬀ

the Oregon coast.

Capital construction projects continue to improve OSU’s main cam-

pus in Corvallis. The university secured state bond funding to match

$35 million in philanthropy to construct the $70 million Patricia

Valian Reser Center for the Creative Arts, also known as PRAx, which

opens in April 2024. Oregon State also successfully raised $91.5 mil-

lion in gifts to help ﬁ nance the $160.8 million construction

of a modernized Reser Stadium, which opened for the ﬁ rst home

football game on Sept. 9, 2023. The Reser Stadium project included

a $19.8 million new health center that serves students, faculty, staﬀ

and the local community, as well as a $10.5 million state-of-the-art

student welcome center. The university continues to make impactful

investments in renovations of critical teaching and research space,

as evidenced by the $171.7 million renovation and modernization of

Cordley Hall, a 236,000-square-foot teaching and research building

that is home to the departments of Integrative Biology and Botany

and Plant Pathology. These two departments serve more than 1,100

students each year, and the facility includes research spaces that

generate signiﬁ cant grant funding for the university.

In its 75th year, the Oregon State University Foundation led the

charge to publicly launch Believe It: The Campaign for Oregon State

University on Friday, Oct. 14, 2022. This campaign marks the uni-

versity’s second fundraising and engagement campaign. At the time

of the launch, donors had already contributed $1 billion toward the

$1.75 billion goal and created nearly 500 new scholarship, fellowship

and student support funds, an increase of 26% since the campaign

began. In ﬁ scal year 2023, donors gave $168.5 million, resulting in

the third best year ever in fundraising, a reﬂ ection of the incredible

momentum following the launch. Notably, the advocacy eﬀ orts of

the foundation through the Beaver Caucus and the university helped

secure $72 million for the Jen-Hsun and Lori Huang Collaborative

Innovation Complex as well as other signiﬁ cant investments from the

state Legislature. The OSU Foundation endowment ended the ﬁ scal

year with a market value of $827.43 million, up from $764.52 on June

30, 2022.

As we look ahead, the 2023-24 academic year promises to advance

OSU’s impact as the state’s leading research university. This October,

the university’s Board of Trustees will consider Oregon State’s next

strategic plan that will take us through the end of the 2029-30

academic year. This plan will be bold and galvanize the university

to reach new heights in enrollment, student success and research

impacts. We have remarkable momentum and greatly value OSU’s

strong Board of Trustees and academic, research and administrative

leaders. I am conﬁ dent that Oregon State University will continue to

provide exemplary service to the state, the nation, and the world.

Jayathi Y. Murthy

OSU President

4 | Oregon State University

POINTS of PRIDE

Research breakthroughs. Innovative faculty.

Stellar students. And a thriving college town

in the heart of the Willamette Valley. It’s no

wonder Oregon State consistently ranks among

the top universities to work, study and explore.

1.4%

of all Universities in

the World

N

o.

2

Forestry in the World

N

o.

2

Best Agriculture College

in the U.S.

N

o.

2

Best College Town

in America

N

o.

3

Oceanography in the World

N

o.

3

Best Universities Solving

Climate Change

N

o.

8

Online Bachelor’s Program

in the U.S.

N

o.

8

Marine and Freshwater

Biology in the World

Top

2023 | Annual Financial Report | 5

INDEPENDENT AUDITORS’ REPORT

Members of the Board of Trustees

Oregon State University

Corvallis, Oregon

Report on the Financial Statements

Opinions

We have audited the accompanying ﬁ nancial statements of the business-type activities and the aggregate discretely present-

ed component units of the Oregon State University, a component unit of the State of Oregon, as of and for the years ended

June 30, 2023 and 2022, 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.

In our opinion, based on our audits and the report 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 the aggregate discretely

presented component units of the University, as of June 30, 2023 and 2022, and the respective changes in ﬁ nancial posi-

tion, 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.

We did not audit the ﬁ nancial statements of the Oregon State University Foundation (the Foundation), which represents

97%, 97%, and 94%, respectively of the 2023 assets, net assets and revenues of the aggregate discretely presented com-

ponent units and 97%, 98% and 95%, respectively of the 2022 assets, net assets and revenues of the aggregate discretely

presented component units. Those statements were audited by other auditors whose report has been furnished to us, and

our opinion, insofar as it relates to the amounts included for the Oregon State University Foundation, is based solely on the

report of other auditors.

Emphasis of Matter

During the ﬁ scal year ended June 30, 2023, the University adopted Government Accounting Standards Board (GASB) State-

ment No. 96, Subscription-Based Information Technology Arrangements . 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, 2021. Our auditors’ opinion was not modiﬁ ed with respect to the restatements.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS)

and the standards applicable to ﬁ nancial audits contained in Government Auditing Standards, issued by the Comptroller Gen-

eral of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities

for the Audit of the Financial Statements section of our report. We are required to be independent of the University and to

meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe

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

statements of the Oregon State University Foundation were not audited in accordance with Government Auditing Standards.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the ﬁ nancial statements in accordance with account-

ing principles generally accepted in the United States of America, and for the design, implementation, and maintenance of

internal control relevant to the preparation and fair presentation of ﬁ nancial statements that are free from material mis-

statement, whether due to fraud or error.

In preparing the ﬁ nancial statements, management is required to evaluate whether there are conditions or events, consid-

ered in the aggregate, that raise substantial doubt about the University’s ability to continue as a going concern for twelve

months beyond the ﬁ nancial statement date, including any currently known information that may raise substantial doubt

shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the ﬁ nancial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assur-

ance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in

accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may

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involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are

considered material if there is a substantial likelihood that, individually or in the aggregate, they would inﬂ uence the judg-

ment made by a reasonable user based on the ﬁ nancial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the ﬁ nancial statements, whether due to fraud or error, and de-

sign and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence

regarding the amounts and disclosures in the ﬁ nancial statements.

• Obtain an understanding of internal control relevant to the audit 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 University’s internal

control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of signiﬁ cant accounting estimates

made by management, as well as evaluate the overall presentation of the ﬁ nancial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial

doubt about the University’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope

and timing of the audit, signiﬁ cant audit ﬁ ndings, and certain internal control related matters that we identiﬁ ed during the

audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and

analysis, schedules of University’s contributions to pension and Other Postemployment Beneﬁ t (OPEB) plans, and sched-

ules of the University’s proportionate share of pension and OPEB plans (collectively referred to as required supplementary

information) be presented to supplement the basic ﬁ nancial statements. Such information is the responsibility of manage-

ment and, 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 appro-

priate operational, economic, or historical context. We have applied certain limited procedures to the required supplemen-

tary information in accordance with GAAS, 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 Information

Management is responsible for the other information included in the annual report. The other information comprises the

Board of Trustees and Executive Oﬃ cers and Message from the President but does not include the basic ﬁ nancial state-

ments and our auditors’ report thereon. Our opinions on the basic ﬁ nancial statements do not cover the other information,

and we do not express an opinion or any form of assurance thereon.

In connection with our audits of the basic ﬁ nancial statements, our responsibility is to read the other information and

consider whether a material inconsistency exists between the other information and the basic ﬁ nancial statements, or the

other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an

uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Go

vernment Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 9, 2023, on our con-

sideration 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 the University’s internal control over ﬁ nancial reporting or on compli-

ance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering

Oregon State University’s internal control over ﬁ nancial reporting and compliance.

CliftonLarsonAllen LLP

Denver, Colorado

November 9, 2023

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Introduction

The 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, 2023, 2022, and 2021. 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 located through-

out the state.

Annual Full-Time Equivalent (FTE) Student

Enrollment Summary

Understanding the Financial

Statements

The 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,

deferred inﬂ ows of resources and ending net position 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 ad-

ditional 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 22 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 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. Un-

less otherwise stated, all years refer to the ﬁ scal year ending

on June 30.

Financial Summary

OSU continued its solid ﬁ nancial growth during ﬁ scal year

2023. Total assets increased by $204 million, or 8 percent,

at the year’s end. This increase was driven mostly by a $236

million increase in net capital assets, a $33 million increase

in notes receivable, and a $31 million increase in accounts

receivable. The remaining asset categories decreased by a

net of $96 million.

Deferred outﬂ ows decreased by $10 million, due mostly to

a decrease in deferred outﬂ ows related to the net pension

liability.

Total liabilities increased by $157 million, or 10 percent, dur-

ing 2023 primarily due to a $93 million increase in the net

pension liability, a $43 million increase in accounts payable

and accrued liabilities, a $14 million increase in unearned

revenue, and a $8 million increase in long-term liabilities.

The remaining liability categories decreased by a net of $1

million.

Deferred inﬂ ows decreased by $107 million, due mostly to

a decrease in deferred inﬂ ows related to the net pension

liability.

Total net position increased by $144 million during ﬁ scal

year 2023 primarily due to a $181 million increase in net

investment in capital assets and a $16 million increase in

restricted net position, which were oﬀ set by a $53 million

decrease in unrestricted net position.

Total revenues increased by $154 million, or 11 percent,

in 2023 over 2022. This increase was widely distributed

among most income categories led by increases in grants

and contracts of $74 million, investment activity of $36 mil-

lion, student tuition and fees of $26 million, capital grants

and gifts of $23 million, auxiliary enterprises of $13 million,

government appropriations of $11 million, gifts of $8 mil-

lion, and educational and other revenues of $1 million. These

2023 2022 2021 2020 2019

Corvallis 18,348 18,043 18,418 19,873 20,745

Cascades 1,035 926 850 843 810

Ecampus 10,435 9,742 9,102 7,617 6,659

Total 29,818 28,711 28,370 28,333 28,214

8 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

increases were oﬀ set by decreases in ﬁ nancial aid grants of

$14 million and changes to permanent endowments of $2

million, as well as a decrease of $22 million in COVID-19

institutional funding due to no new funding during 2023.

Operating expenses increased by $105 million in 2023, or 8

percent, over 2022. This increase was spread among many

categories led by increases in research of $33 million, public

service of $30 million, instruction of $22 million, auxiliary

programs of $19 million, student services of $7 million, insti-

tutional support of $3 million, operations and maintenance

of plant of $2 million, and other operating expenses of $1

million. These increases were oﬀ set by decreases in student

aid of $11 million and academic support of $1 million.

Statement of Net Position

The 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

Resources

Total assets increased by $204 million, or 8 percent, during

the year ended 2023 due primarily to increases in accounts

receivable, notes receivable, investments, prepaid expenses,

net OPEB asset and net capital assets, which were oﬀ set by

decreases in cash and cash equivalents and leases receiv-

able. Total assets increased by $112 million, or 5 percent,

during the year ended 2022 due primarily to increases in ac-

counts receivable, investments, prepaid expenses, net OPEB

asset and net capital assets, which were oﬀ set by decreases

in cash and cash equivalents, notes receivable, and leases

receivable.

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Current Assets increased by $8 million, or 2 percent, pri-

marily due to:

• Current cash and cash equivalents decreased by $63

million primarily due to a decrease in the amount of cash

in operations combined with an increase in the amount of

operating cash transferred to investments as of year end.

• Accounts receivable increased by $31 million. Increases in

receivables related to student tuition and fees, component

units, capital construction grants, and state grants and

contracts were slightly oﬀ set by decreases in receivables

for auxiliaries and federal grants and an increase in

allowance for doubtful accounts. See Note 3 Accounts

Receivable for additional information.

• Current notes receivable increased by $39 million due

to the addition of a note receivable from the state for

XI-F(1) bonds for construction projects. See Note 4 Notes

Receivable for additional information.

• Prepaid expenses increased by $2 million due to increases

in prepaid expenses in general operations oﬀ set by

decreases in prepaids associated with auxiliaries,

restricted grants and contracts and capital construction.

Noncurrent (Noncapital) Assets decreased by $40 million,

or 6 percent.

• Noncurrent cash and cash equivalents decreased by $40

million due primarily to a decrease in cash held for capital

construction over the previous year.

• Investments increased by $6 million due primarily

to an increase in the market value of the university’s

investments. See Note 2 Cash and Investments, Section B

Investments for additional information.

• Noncurrent notes receivable decreased by $6 million.

Decreases in receivables related to Perkins loans and the

installment receivable from Link Oregon were somewhat

oﬀ set by an increase in receivables related to split dollar

agreements with the Pat Casey Family Trust (PCFT) and

Coach Jonathan Smith. See Note 1 Organization and

Summary of Signiﬁ cant Accounting Policies, Section AA

Related Party Transactions and Note 4 for additional

information.

• The net OPEB asset was relatively unchanged. See Note

18 Other Post-employment Beneﬁ ts (OPEB) for additional

information.

Capital Assets, Net increased by $236 million, or 15

percent. See detailed information on Capital Assets in this

MD&A for additional information on this change.

As of June 30, 2023 2022 2021

Current Assets 345$ 337$ 403$

Noncurrent Assets 581 621 594

Capital Assets, Net 1,835 1,599 1,448

Total Assets 2,761$ 2,557$ 2,445$

Deferred Outflows of Resources 190$ 200$ 177$

Current Liabilities 353$ 264$ 221$

Noncurrent Liabilities 1,356 1,288 1,498

Total Liabilities 1,709$ 1,552$ 1,719$

Deferred Inflows of Resources 198$ 305$ 96$

Net Investment in Capital Assets 1,140$ 959$ 943$

Restricted - Nonexpendable 7 7 6

Restricted - Expendable 96 80 84

Unrestricted (199) (146) (226)

Total Net Position 1,044$ 900$ 807$

2023 | Annual Financial Report | 9

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Deferred Outﬂ ows of Resources decreased by $10 million,

or 5 percent.

• Deferred outﬂ ows related to the net pension liability

decreased by $11 million.

• Deferred outﬂ ows related to the OPEB asset and liabilities

were relatively unchanged.

• Deferred outﬂ ows related to the asset retirement

obligation increased by $1 million due to a change in the

cost estimate for decommissioning. See Note 11 Asset

Retirement Obligations for additional information.

• See Note 6 Deferred Outﬂ ows and Inﬂ ows of Resources

for additional information.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Current Assets decreased by $66 million, or 16 percent,

primarily due to:

• Current cash and cash equivalents decreased by $86

million primarily due to a decrease in the amount of cash

in operations combined with an increase in the amount of

operating cash transferred to investments as of year end.

• Accounts receivable increased by $16 million. Increases in

receivables related to student tuition and fees, auxiliaries,

component units and federal grants were slightly oﬀ set

by decreases in receivables for capital construction

grants, state grants and contracts, and an increase in

allowance for doubtful accounts. See Note 3 for additional

information.

• Prepaid expenses increased by $4 million due to increases

in prepaid expenses in general operations, auxiliaries,

restricted grants and contracts and capital construction.

• Current notes receivable was relatively unchanged. A

decrease in Perkins loans receivable was partially oﬀ set

by an increase in the installment receivable from Link

Oregon. See Note 4 for additional information.

• Current leases receivable was relatively unchanged.

Noncurrent (Noncapital) Assets increased by $27 million,

or 5 percent.

• Noncurrent cash and cash equivalents decreased by $3

million due primarily to a decrease in cash held for capital

construction over the previous year.

• Investments increased by $25 million due primarily to

an increase in total dollars invested, somewhat oﬀ set

by a decrease in the market value of the university’s

investments. See Note 2, Section B for additional

information.

• Noncurrent notes receivable decreased by $2 million.

Decreases in receivables related to Perkins loans and

institutional student loans were somewhat oﬀ set by an

increase in receivables related to split dollar agreements

with the Pat Casey Family Trust (PCFT) and Coach

Jonathan Smith. See Note 1 and Note 4 for additional

information.

• Noncurrent leases receivable decreased by $1 million.

• The net OPEB asset increased by $8 million. See Note 18

for additional information.

Capital Assets, Net increased by $151 million, or 10

percent. See detailed information on Capital Assets in this

MD&A for additional information on this change.

Deferred Outﬂ ows of Resources increased by $23 million,

or 13 percent.

• Deferred outﬂ ows related to the net pension liability

increased by $24 million.

• Deferred outﬂ ows related to the OPEB asset and liabilities

decreased by $1 million.

• Deferred outﬂ ows related to the asset retirement

obligation were relatively unchanged.

• See Note 6 for additional information

Capital Assets and Related Financing

Activities

Capital Assets

At June 30, 2023, OSU had $2.9 billion in capital assets, less

accumulated depreciation of $1.1 billion, for net capital as-

sets of $1.8 billion. At June 30, 2022, OSU had $2.7 billion in

capital assets, less accumulated depreciation of $1.1 billion,

for net capital assets of $1.6 billion. OSU is committed to a

comprehensive program of capital investment and facility

maintenance that includes addressing current maintenance

needs and minimizing OSU’s deferred maintenance backlog.

State, federal, private, debt, and internal funding were all

used to accomplish OSU’s capital objectives.

2023 Capital Assets, Net $1,835 Million

Buildings

66%

Land and

Improvements

4%

Capitalized

Collections

2%

Construction in

Progress

21%

Equipment and

Other

5%

ROU Assets

2%

10 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Changes to Capital Assets

(in millions)

Capital additions totaled $327 million for 2023, $233 mil-

lion for 202

2, and $167 million for 2021.

During 2023, capital asset additions included $286 million

for construction in progress (CIP); $22 million for equip-

ment; $11 million for right-of-use (ROU) SBITAs; $4 mil-

lion for buildings; and $3 million for ROU leased buildings.

During 2022, capital asset additions included $142 million

for CIP; $15 million for equipment; $48 million for build-

ings; and $26 million for ROU SBITAs. During 2021, capital

asset additions included $133 million for CIP; $14 million for

equipment; $15 million for ROU leased buildings; $3 million

for buildings; $1 million for land improvements; and $1 mil-

lion for infrastructure.

Key projects still in progress at the end of 2023 included the

Collaboration Innovation Complex, Cordley Hall, Reser Sta-

dium West Grandstands, PraX Arts and Education Complex,

Withycombe Hall, PacWave Energy Test Facility with Subsea

and Terrestrial Cables, Upper Division and Grad Student

Housing, OSU Cascades Innovation Development District,

Washington Way Improvement, Campus Operations Cen-

ter, OSU Cascades Student Success Center, HMSC Student

Housing, Ship Operations Dock Replacement, Gilkey Hall,

and Kelley Engineering Utility Plant.

During 2023, $58 million in capital projects were completed

and placed into service, including Fairbanks Hall, Graf Hall,

Cordley Hall, Campus-wide Street Improvements, and HMSC

Seawater System.

See Note 5 Capital Assets for additional information.

Debt Administration

During 2023, long-term debt held by OSU increased by $26

million, or 3 percent, from $967 million to $993 million.

• OSU made debt service principal payments totalling $15

million on outstanding long-term debt.

• OSU added new debt of $40 million (par value) of XI-F(1)

bonds issued by the state on behalf of the university for

capital construction.

• OSU’s remaining obligation for premiums on outstanding

debt decreased by less than $1 million.

• OSU added new debt of $3 million for new leases and

made principal payments of $2 million for a net increase of

less than $1 million in lease liabilities.

• OSU added new debt of $8 million for new SBITAs and

made principal payments of $9 million for a net decrease

of less than $1 million in SBITA liabilities.

During 2022, long-term debt held by OSU increased by $3

million, or less than 1 percent, from $964 million to $967

million.

• OSU made debt service principal payments totalling $10

million on outstanding long-term debt.

• OSU’s remaining obligation for accreted interest and

premiums on outstanding debt decreased by $1 million.

• OSU added new debt of $2 million for new leases and

made principal payments of $4 million for a net decrease

of $2 million in lease liabilities.

• OSU added new debt of $24 million for new SBITAs and

made principal payments of $8 million for a net increase

of $16 million in SBITA liabilities

See Note 10 Long-Term Liabilities for additional information.

Long-term Debt

(in millions)

Total Liabilities and Deferred Inﬂ ows of

Resources

Total liabilities increased by $157 million, or 10 percent,

during 2023 primarily due to increases in the net pension

liability, accounts payable and accrued liabilities, unearned

revenues, long-term liabilities, and asset retirement obli-

gation were oﬀ set by decreases in net OPEB liability and

deposits. During 2022, total liabilities decreased by $167

million, or 10 percent, primarily due to decreases in the net

pension liability and long-term liabilities oﬀ set by increases

in accounts payable and accrued liabilities.

As of June 30, 2023 2022 2021

Capital Assets, Beginning of Year 2,655$ 2,432$ 2,276$

Add: Purchases/Construction 327 233 167

Less: Retirements/Adjustments (15) (10) (11)

Total Capital Assets, End of Year 2,967 2,655 2,432

Accum. Depr/Amort, Beginning of Year (1,056) (984) (925)

Add: Depr/Amort Expense (86) (80) (70)

Less: Retirements/Adjustments 10 8 11

Total Accum. Depr/Amort, End of Year (1,132) (1,056) (984)

Total Capital Assets, Net, End of Year 1,835$ 1,599$ 1,448$

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2023 2022 2021

Leases/SBITAs

Oregon Department of

Energy Loans

General Revenue Note

General Revenue

Bonds

State of Oregon

Contracts Payable

2023 | Annual Financial Report | 11

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Current Liabilities increased by $89 million, or 34 percent.

Key changes in current liabilities included:

• Accounts payable and accrued liabilities increased by

$42 million due primarily to increases in services and

supplies payables associated with general operations,

restricted grants and contracts, and capital construction

projects which were only slightly oﬀ set by a decrease in

services and supplies payables associated with auxiliaries.

See Note 7 Accounts Payable and Accrued Liabilities for

additional information.

• The current portion of long-term liabilities increased by

$34 million due mainly to the $40 million general revenue

note payable to JPMorgan Chase Bank, N.A. coming

due in ﬁ scal year 2024. Other increases in compensated

absences liability and state contracts payable were more

than oﬀ set by decreases in deferred payroll taxes payable,

Perkins loan liability and the SBITA liability. See discussion

of Debt Administration earlier in this MD&A and Note 10

for additional information.

• Unearned revenue increased by $14 million due to

increases in unearned revenue related to student tuition

and fees, grants and contracts and auxiliaries.

Noncurrent Liabilities increased by $68 million, or 5 per-

cent.

• The noncurrent portion of long-term liabilities decreased

by $26 million due to decreases in the JPMorgan general

revenue note payable, Perkins loan liability and state and

local government rate pool liability which were somewhat

oﬀ set by increases in the state contracts payable and

compensated absences liabilities. See discussion of Debt

Administration earlier in this MD&A and Note 10 for

additional information.

• The net pension liability increased by $94 million. See

Note 17 Employee Retirement Plans for additional

information.

• The net OPEB Liability decreased by $2 million. See Note

18 Other Post-employment Beneﬁ ts (OPEB) for additional

information.

• The asset retirement obligation liability associated with

the teaching, research, isotopes, and general atomics

reactor increased by $2 million as the result of a new

estimate on the cost of decommissioning the asset. See

Note 11 Asset Retirement Obligations for additional

information.

Deferred Inﬂ ows of Resources decreased by $107 million

or 35 percent.

• Deferred inﬂ ows related to the net pension liability

decreased by $103 million.

• Deferred inﬂ ows related to the OPEB asset and liabilities

decreased by $1 million.

• Deferred inﬂ ows related to leases decreased by $3 million.

• See Note 6 Deferred Outﬂ ows and Inﬂ ows of Resources

for detailed information on this change.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Current Liabilities increased by $43 million, or 19 percent.

Key changes in current liabilities included:

• Accounts payable and accrued liabilities increased by $26

million due primarily to increases in services and supplies

payables associated with general operations, auxiliaries,

restricted grants and contracts, and capital construction

projects. See Note 7 for additional information.

• The current portion of long-term liabilities increased

by $18 million due mainly to increases in compensated

absences liability and state contracts payable and the

addition of the SBITA liability for the implementation of

GASB Statement No. 96, Subscription-Based Information

Technology Arrangements. See discussion of Debt

Administration earlier in this MD&A and Note 10 for

additional information.

Noncurrent Liabilities decreased by $210 million, or 14

percent.

• The noncurrent portion of long-term liabilities decreased

by $31 million due to decreases in the compensated

absences liability, deferred payroll taxes payable, leases

payable, Perkins loan liability, state and local government

rate pool liability and state contracts payable which were

somewhat oﬀ set by the addition of the SBITA liability

for the implementation of GASB Statement No. 96. See

discussion of Debt Administration earlier in this MD&A

and Note 10 for additional information.

• The net pension liability decreased by $176 million. See

Note 17 for additional information.

• The net OPEB Liability decreased by $3 million. See Note

18 for additional information.

• The asset retirement obligation liability associated with

the teaching, research, isotopes, and general atomics

reactor increased by $1 million as the result of a new

estimate on the cost of decommissioning the asset. See

Note 11 for additional information.

Deferred Inﬂ ows of Resources increased by $209 million or

218 percent.

• Deferred inﬂ ows related to the net pension liability

increased by $205 million.

• Deferred inﬂ ows related to the OPEB asset and liabilities

increased by $8 million.

• Deferred inﬂ ows related to leases decreased by $4 million.

• See Note 6 for additional information.

12 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Total Net Position

Total net position (TNP) increased by $144 million, or 16

percent, during 2023. TNP beneﬁ ted from a $181 million

increase in net investment in capital assets and an increase

of $16 million in restricted expendable net position but was

negatively impacted by a reduction in unrestricted net posi-

tion of $53 million.

TNP increased by $93 million, or 12 percent, during 2022.

TNP beneﬁ ted from a $16 million increase in net investment

in capital assets and an increase of $80 million in unrestrict-

ed net position but was negatively impacted by a reduction

in restricted expendable net position of $4 million.

The graph below illustrates how the composition of net

position has changed since 2021. (in millions)

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Net Investment in Capital Assets increased by $181 mil-

lion, or 19 percent. Net capital assets increased by $236

million which was oﬀ set by an increase to long-term debt

outstanding attributable to the capital assets of $55 million.

See Note 5 Capital Assets and Note 10 Long-Term Liabilities

for additional information.

Restricted Expendable Net Position increased by $16 mil-

lion, or 70 percent.

• Net position restricted for gifts, grants and contracts

increased by $1 million due primarily to an increase in the

market value of endowment funds.

• Net position restricted for student loans decreased by $1

million. Decreases in student loan receivables were mostly

oﬀ set by decreases in the Perkins loan program liability

and decreases in the allowance for doubtful accounts.

• Net position restricted for capital projects increased

by $18 million due primarily to increases in receivables

and cash at year end, somewhat oﬀ set by an increase in

payables.

• Net position restricted for debt service decreased by $2

million.

• Net Position restricted for OPEB asset was relatively

unchanged and is equal to the Net OPEB Asset reported in

noncurrent assets.

Unrestricted Net Position decreased by $53 million, or 36

percent.

• A decrease in unrestricted operating performance, which

includes education, auxiliary and general business type

activities, resulted in a decrease to unrestricted net

position of $54 million.

• Changes associated with the PERS net pension liability,

net of deferrals, decreased unrestricted net position by $2

million. See Note 17 for additional information.

• The OPEB liabilities and associated deferred outﬂ ows and

inﬂ ows of resources increased unrestricted net position by

$2 million. See Note 18 for additional information.

• The year-end liability accrual for the PERS state and local

government rate pool (SLGRP) decreased by $4 million

and the accrual for compensated absences increased by

$3 million. A decrease in the liability accrual results in an

increase in net position.

• See Note 12 Unrestricted Net Position for additional

information.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Net Investment in Capital Assets increased by $16 million,

or 2 percent. Net capital assets increased by $151 million

which was oﬀ set by an increase to long-term debt outstand-

ing attributable to the capital assets of $135 million. See

Note 5 and Note 10 for additional information.

Restricted Expendable Net Position decreased by $4 mil-

lion, or 5 percent.

• Net position restricted for gifts, grants and contracts

decreased by $13 million due primarily to a decrease in

the market value of endowment funds.

• Net position restricted for student loans was relatively

unchanged. Decreases in student loan receivables were

oﬀ set by decreases in the Perkins loan program liability.

• Net positions restricted for capital projects and debt

service were relatively unchanged.

• Net Position restricted for OPEB asset increased by $8

million and is equal to the Net OPEB Asset reported in

noncurrent assets.

Unrestricted Net Position increased by $80 million, or 35

percent.

• An increase in unrestricted operating performance, which

includes education, auxiliary and general business type

activities, resulted in an increase to unrestricted net

position of $77 million.

$(400)

$(200)

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2023 2022 2021

Restricted -

Expendable

Nonexpendable

Endowments

Net Investment in

Capital Assets

Unrestricted

2023 | Annual Financial Report | 13

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

• Changes associated with the PERS net pension liability,

net of deferrals, decreased unrestricted net position by $5

million. See Note 17 for additional information.

• The OPEB liabilities and associated deferred outﬂ ows and

inﬂ ows of resources increased unrestricted net position by

$4 million. See Note 18 for additional information.

• The year-end liability accrual for the PERS SLGRP

decreased by $2 million and the accrual for compensated

absences decreased $2 million. A decrease in the liability

accrual results in an increase in net position.

• See Note 12 for additional information.

Statement of Revenues, Expenses

and Changes in Net Position

Due to the classiﬁ cation of certain key revenues as nonoper-

ating 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

Revenues

As seen in the Total Operating, Non-Operating and Other

Revenues table at the top right, total revenues increased by

$154 million, or 11 percent, in 2023 over 2022. Increases

were seen in all categories of operating and nonoperating

revenues except ﬁ nancial aid grants, COVID-19 institutional

funding and changes to permanent endowments.

Total Operating, Nonoperating and Other

Revenues

(in millions)

Total Operating, Nonoperating, Other

Revenues and Special Items

(in millions)

Operating Revenues

Operating revenues increased by $114 million in 2023, or

13 percent, over 2022, to $1,015 million. Increases in 2023

were due to increases in all categories of operating revenue.

Operating revenues increased by $77 million in 2022, or 9

percent, over 2021, to $901 million. Increases in 2022 were

due to increases in student tuition and fees and auxiliary

enterprises, which were oﬀ set by decreases in grants and

contracts.

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Net Student Tuition and Fees increased by $26 million, or

7 percent.

• Increased student enrollment accounted for $20 million of

increased revenue

For the Years Ended June 30, 2023 2022 2021

Operating Revenues 1,015$ 901$ 823$

Operating Expenses 1,403 1,298 1,258

Operating Loss (388) (397) (435)

Nonoperating Revenues,

Net of Expenses 409 388 367

Other Revenues, Net of Expenses 123 101 79

144 92 11

Net Position, Beginning of Year 900 807 796

Change in Accounting Principle - 1 -

Net Position, Beginning of Year, Restated 900 808 796

Net Position, End of Year 1,044$ 900$ 807$

Increase in Net Position

For the Years Ended June 30, 2023 2022 2021

Student Tuition and Fees 381$ 355$ 349$

Grants and Contracts 363 289 297

Auxiliary Enterprises 199 186 107

Educational and Other 72 71 71

Total Operating Revenues 1,015 901 824

Government Appropriations 290 279 264

Financial Aid Grants 58 72 54

Gifts 64 56 49

Investment Activity 30 (6) 28

Capital Grants and Gifts 122 99 77

COVID-19 Institutional Funding - 22 19

Changes to Permanent Endowment

s

(1) 1 1

Total Nonoperating and

Other Revenues 563 523 492

Total Revenues 1,578$ 1,424$ 1,316$

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

Student Tuition and Fees

Operating Grants and Contracts

Auxiliary Enterprises

Educational and Other

Government Appropriations

Other

2023 2022 2021

14 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

• Higher tuition and fee rates accounted for $24 million of

increased revenue.

• Fee remissions, scholarship allowances and bad debt

allowances reduced tuition and fees by $18 million more

than in the prior year.

Federal, State and Nongovernmental Grants and Con-

tracts increased by $74 million, or 26 percent.

• Federal grant and contract revenues increased by $65

million primarily due to an increases in National Science

Foundation cooperative agreements and direct grants.

• State and local grant and contract revenues increased

by $10 million due primarily to increases in grants and

contracts from the Department of Education and other

state agencies.

• Nongovernmental grant and contract revenues decreased

by $1 million due mainly to decreased grants and

contracts from the Agricultural Research Foundation

oﬀ set by increases in grants and contracts from non-

aﬃ liated foundations and societies and commercial

businesses.

Auxiliary Enterprise revenues increased by $13 million, or

7 percent.

• Housing and dining revenues increased by $10 million due

to increased room and board fee and meal plan revenues

resulting from increased occupancy of university-owned

dorms and housing.

• Athletics revenues increased by $2 million due primarily

to increased ticket sales, bowl income, and sponsorship

income somewhat oﬀ set by decreased conference TV

shares.

• Health services revenues decreased by $5 million due

mainly to decreased income from non-employee insurance

premiums.

• Student centers revenues were relatively unchanged.

• Parking services revenues increased by $1 million due to

increased revenues from parking permits and ﬁ nes.

• Other auxiliary revenues increased by $5 million due

mainly to increased student incidental fees and student

health fees.

Educational and Other revenues increased by $1 million, or

1 percent.

• Educational department sales and services revenues

increased by $5 million due primarily to increases in

general services income, conference income, animal sales

and surplus sales, which were slightly oﬀ set by decreases in

general sales income.

• Other operating revenues decreased by $4 million due

primarily to the full amortization of funds received for

employer incentive matching funds for the university’s

payment into a PERS side account to oﬀ set future rate

increases. See Note 17 Employee Retirement Plans for

additional information.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Net Student Tuition and Fees increased by $6 million, or 2

percent.

• Increased student enrollment accounted for $6 million of

increased revenue

• Higher tuition and fee rates accounted for $22 million of

increased revenue.

• Fee remissions, scholarship allowances and bad debt

allowances reduced tuition and fees by $22 million more

than in the prior year.

Federal, State and Nongovernmental Grants and Con-

tracts decreased by $8 million, or 3 percent.

• Federal grant and contract revenues decreased by $14

million primarily due to a decrease in National Science

Foundation cooperative agreements.

• State and local grant and contract revenues increased

by $2 million. Increases in grants and contracts from the

Department of Education and other state agencies were

somewhat oﬀ set by decreases in grants and contracts

from the Department of Agriculture, the Department of

Fish and Wildlife, the Department of Transportation, the

Department of Forestry, and the Economic Development

Division.

• Nongovernmental grant and contract revenues increased

by $4 million due mainly to increases in grants and

contracts from the Agricultural Research Foundation

and commercial businesses, which were slightly oﬀ set

by decreases in grants and contracts from non-aﬃ liated

foundations and societies.

Auxiliary Enterprise revenues increased by $79 million, or

74 percent.

• Housing and dining revenues increased by $40 million due

to increased room and board fee and meal plan revenues

resulting from increased occupancy of university-owned

dorms and housing.

• Athletics revenues increased by $33 million due primarily

to increased ticket sales, bowl income, conference TV

shares, and sponsorship income.

• Health services revenues increased by $1 million due

mainly to increased income from non-employee insurance

premiums, and medical lab fees.

• Student centers revenues increased by $1 million primarily

as a result of increased membership income.

• Parking services revenues increased by $2 million due to

increased revenues from parking permits and ﬁ nes.

2023 | Annual Financial Report | 15

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

• Other auxiliary revenues increased by $2 million due

mainly to increased student incidental fees revenue.

Educational and Other revenues were relatively un-

changed.

• Educational department sales and services revenues were

relatively unchanged. Decreases in general sales and

services income, and testing fees were oﬀ set by increases

in noncredit workshop income, room and board fees and

lease revenue.

• Other operating revenues increased by just over $1 million

due primarily to recording funds received for employer

incentive matching funds associated with the university’s

payment into a PERS side account to oﬀ set future rate

increases. See Note 17 for additional information.

Nonoperating and Other Revenues

Total nonoperating and other revenues increased by $40

million, or 8 percent, during 2023. Increases in government

appropriations, gifts, investment activity, and capital grants

and gifts were somewhat oﬀ set by a decrease in ﬁ nancial aid

grants, changes to permanent endowments, and COVID-19

institutional funding. Total nonoperating and other revenues

increased by $31 million during 2022. Increases in govern-

ment appropriations, ﬁ nancial aid grants, gifts, capital

grants and gifts, and COVID-19 institutional funding were

somewhat oﬀ set by a decrease in investment activity.

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Government Appropriations increased by $11 million, or 4

percent.

• State appropriations increased by $10 million due to

increased funding received in support of the operations of

the university and statewide public services.

• State lottery appropriations in support of outdoor school

were unchanged. Outdoor school for middle school

students is administered by the cooperative extension

services on behalf of the state.

• County appropriations in support of the statewide public

services increased by $1 million.

• Debt service appropriations from the state were

unchanged.

• See Note 16 Government Appropriations for additional

information.

Financial Aid Grants decreased by $14 million, or 19

percent. The expiration of federal HEERF Act funding was

slightly oﬀ set by increases in federal Pell grants, Oregon

opportunity grants and Oregon Student Aid scholarship

funding.

Gifts increased by $8 million, or 14 percent, due primarily to

increased gifts from the OSU Foundation.

Investment Activity revenues increased by $36 million

due primarily to the reversal of the prior year signiﬁ cant net

market value decline of investments as well as increased

investment earnings. See Note 14 Investment Activity for

additional information relating to these changes.

Capital Grants and Gifts increased by $23 million, or 23

percent due primarily to increased state capital grants oﬀ set

by decreased gifts from the OSU Foundation and federal

capital contracts.

COVID-19 Institutional Funding decreased by $22 million

to zero as a result of no new funds received in the current

year for federal COVID-19 relief funding for institutional

support. See Note 1 Organization and Summary of Signiﬁ -

cant Accounting Policies, Section AB COVID-19 Relief Fund-

ing for additional information.

Changes to Permanent Endowments decreased by $2

million due to the decrease in value of a permanent forest

endowment.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Government Appropriations increased by $15 million, or 6

percent.

• State appropriations increased by $13 million due to

increased funding received in support of the operations of

the university and statewide public services.

• State lottery appropriations in support of outdoor school

increased by $1 million. Outdoor school for middle school

students is administered by the cooperative extension

services on behalf of the state.

• County appropriations in support of the statewide public

services increased by $1 million.

• Debt service appropriations from the state were

unchanged.

• See Note 16 for additional information.

Financial Aid Grants increased by $18 million, or 33

percent, primarily due to increases in Oregon opportunity

grants, federal Pell grants, and federal HEERF Act aid,

slightly oﬀ set by decreases in Ford Family Foundation

scholarships and federal SEOG aid.

Gifts increased by $7 million, or 14 percent, due primarily to

increased gifts from the OSU Foundation.

Investment Activity revenues decreased by $34 million due

primarily to a signiﬁ cant net market value decline of invest-

ments. OSU’s operating and endowment assets recorded

declines for the year due to volatility in the equity and ﬁ xed

income markets. The market volatility was driven primarily

by investor concerns over 40-year high inﬂ ation readings

near 9% and economic deceleration, resulting in rising inter-

est rates and declining stock and bond prices. See Note 14

for additional information relating to these changes.

16 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Capital Grants and Gifts increased by $22 million, or 29

percent due primarily to increased gifts and contracts from

the OSU Foundation and federal capital contracts, and were

only slightly oﬀ set by decreased state capital grants.

COVID-19 Institutional Funding increased by $3 million,

due to ﬁ nal amounts received on prior year awards for fed-

eral COVID-19 relief funding for institutional support. See

Note 1, Section AB for additional information.

Expenses

Operating Expenses

Operating expenses increased by $105 million in 2023, or 8

percent, over 2022, to $1,403 million. Increases in instruc-

tion, research, public service, student services, auxiliary

programs, institutional support, operations and mainte-

nance of plant, and other operating expenses were oﬀ set by

decreases in academic support and student aid.

Operating expenses increased by $40 million in 2022, or 3

percent, over 2021, to $1,298 million. Increases in instruc-

tion, auxiliary programs, institutional support, student aid

and other operating expenses were oﬀ set by decreases in

research, public service, and academic support.

The following table and chart summarize operating expenses

by functional classiﬁ cation (in millions):

Operating Expenses by Function

2023 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. The following tables show the eﬀ ect of GASB State-

ment Nos. 68, 71, and 75 on operating expenses across the

functional 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 a de-

crease to total operating expenses of $1 million in 2023 and

$8 million in 2022. The $51 million aggregate total for the

three year period has had a signiﬁ cant impact on the univer-

sity’s reported operating performance and net position.

For the Years Ended June 30, 2023 2022 2021

Instruction 344$ 322$ 318$

Research 255 222 227

Public Service 195 165 179

Academic Support 87 88 92

Student Services 43 36 36

Auxiliary Programs 203 184 154

Institutional Support 126 123 115

Operations & Maintenance of Plant 43 41 41

Student Aid 39 50 36

Other Operating Expenses 68 67 60

Total Operating Expenses 1,403$ 1,298$ 1,258$

Auxiliary

Programs

14%

Institutional

Support

9%

Operation and

Maintenance of

Plant

3%

Student

Aid

3%

Other

5%

Instruction

25%

Research

18%

Public

Service

14%

Academic

Support

6%

Student

Services

3%

For the Year Ended June 30, 2023

As

Reported

Without

GASB 68/71

& 75 Difference

Instruction

344$ 345$ (1)$

Research

255 255 -

Public Service

195 195 -

Academic Support

87 87 -

Student Services

43 43 -

Auxiliary Programs

203 203 -

Institutional Support

126 126 -

Operation & Maintenance of Plant

43 43 -

Student Aid

39 39 -

Other Operating Expenses

68 68 -

Total Operatin

g

Expenses 1,403$ 1,404$ (1)$

For the Year Ended June 30, 2022

As

Reported

Without

GASB 68/71

& 75 Difference

Instruction

322$ 325$ (3)$

Research

222 223 (1)

Public Service

165 166 (1)

Academic Support

88 88 -

Student Services

36 37 (1)

Auxiliary Programs

184 184 -

Institutional Support

123 124 (1)

Operation & Maintenance of Plant

41 42 (1)

Student Aid

50 50 -

Other Operating Expenses

67 67 -

Total Operatin

g

Expenses 1,298$ 1,306$ (8)$

For the Year Ended June 30, 2021

As

Reported

Without

GASB 68/71

& 75 Difference

Instruction

318$ 300$ 18$

Research

227 218 9

Public Service

179 171 8

Academic Support

92 86 6

Student Services

36 34 2

Auxiliary Programs

154 147 7

Institutional Support

115 113 2

Operation & Maintenance of Plant

41 34 7

Student Aid

36 36 -

Other Operating Expenses

60 59 1

Total Operatin

g

Expenses 1,258$ 1,198$ 60$

2023 | Annual Financial Report | 17

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Operating Expenses by Natural

Classiﬁ cation

OSU expenses are normally incurred via natural classiﬁ ca-

tions, but are reported by functional classiﬁ cation in the

ﬁ nancial statements. Variances are presented and explained

by analyzing changes in the natural classiﬁ cation of ex-

penses. Each natural classiﬁ cation analysis can be applied

to multiple functional expense caption items. See Note 15

Operating Expenses by Natural Classiﬁ cation for additional

information.

The following summarizes operating expenses by natural

classiﬁ cation (in millions):

2023 Operating Expenses by Natural

Classiﬁ cation

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Compensation and Beneﬁ t costs increased by $59 million,

or 7 percent.

• Salary and wage costs increased by $43 million due to

increased staﬃ ng and pay increases.

• Health and retirement contributions increased by a net $3

million due to increased rates and increased participation.

• Other payroll expenses increased by $5 million due

primarily to an increase in accrued leave expense.

• Net pension expense increased by $7 million due to

changes in the net pension liability and associated

deferred inﬂ ows and outﬂ ows reported as required by

GASB Statement Nos. 68 and 71. See Note 17 Employee

Retirement Plans for additional information on this

variance.

• Adjustments and accruals to compensation and beneﬁ ts

associated with the OPEB asset and liability reporting

requirement of GASB Statement No. 75 increased by less

than $1 million. See Note 18 Other Post-employment

Beneﬁ ts (OPEB) for additional information.

Services and Supplies expenses increased by $49 million, or

15 percent as a result of increases in most categories of ser-

vice and supplies expenses including general supplies, travel,

food purchased for resale, maintenance and repairs, fees and

services, and assessments, that were only slightly oﬀ set by

decreases in rentals.

Scholarships and Fellowships costs decreased by $15 mil-

lion, or 25 percent due to a decrease in federal aid resulting

from the expiration of HEERF student aid funds that were

not fully oﬀ set by increases in other federal aid, state aid,

OSU Foundation aid, institutional aid and private aid.

Depreciation and Amortization expense increased by $7

million, or 9 percent. During 2023, $58 million in capital

projects were completed and placed into service, including

Fairbanks Hall, Graf Hall, Cordley Hall, Campus-wide Street

Improvements, and HMSC Seawater System.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Compensation and Beneﬁ t costs decreased by $17 million,

or 2 percent.

• Salary and wage costs increased by $35 million due

primarily to increased staﬃ ng and pay increases.

• Other payroll expenses decreased by a net $2 million.

• Total pension expense decreased by $47 million due to

a decrease in the net pension liability and adjustments

to associated deferred inﬂ ows and outﬂ ows reported as

required by GASB Statement Nos. 68 and 71. See Note 17

for additional information on this variance.

• Adjustments and accruals to compensation and beneﬁ ts

associated with the OPEB asset and liability reporting

requirement of GASB Statement No. 75 decreased by $3

million. See Note 18 for additional information.

Services and Supplies expenses increased by $31 million, or

10 percent as a result of increases in most categories of ser-

vice and supplies expenses including travel, food purchased

for resale, maintenance and repairs, fees and services, rent-

als and leases, and assessments.

Scholarships and Fellowships costs increased by $15 mil-

lion, or 33 percent due to increases in federal aid, state aid,

OSU Foundation aid, and institutional aid.

Depreciation and Amortization expense increased by $10

million, or 14 percent. During 2022, $135 million in capital

projects were completed and placed into service, including

the Cascades Campus Academic Building II, Fiber-optic

Cable Infrastructure and Owen Hall.

For the Years Ended June 30, 2023 2022 2021

Compensation and Benefits 883$ 824$ 841$

Services and Supplies 381 332 301

Scholarships and Fellowships 45 60 45

Depreciation and Amortization 87 80 70

Other 7 2 1

Total Operating Expenses 1,403$ 1,298$ 1,258$

Compensation and

Benefits

63%

Services and

Supplies

27%

Scholarships and

Fellowships

3%

Depreciation and

Amortization

6%

Other

1%

18 | Oregon State University

Management’s Discussion and Analysis

For the Years Ended June 30, 2023 and 2022

Nonoperating Expenses

Comparison of ﬁ scal year 2023 to ﬁ scal year 2022

Interest Expense decreased by $1 million, or 3 percent.

Decreased interest related to the PERS state and local gov-

ernment rate pool liability was mostly oﬀ set by increased

interest related to SBITAs, bonds and the JPMorgan General

Revenue Note.

Other Nonoperating Items increased by $4 million, due

primarily to the continued close-out of the Perkins student

loan program.

Comparison of ﬁ scal year 2022 to ﬁ scal year 2021

Interest Expense increased by $5 million, or 17 percent,

due primarily to increased revenue bond interest due to the

issuance of $303 million in revenue bonds during ﬁ scal year

2021.

Other Nonoperating Items decreased by $17 million,

due primarily to a prior year net loss on refunding of previ-

ously held debt in the form of contracts due to the State of

Oregon.

Economic Outlook

Funding for OSU’s major activities comes from a variety

of sources: tuition and fees; federal, foundation and other

grants; state and county appropriations; ﬁ nancial aid pro-

grams; private and government contracts; royalties; 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 administra-

tive and facilities costs.

Registrations continue to point toward increased enroll-

ments. Student and family decision-making behaviors

changed over the pandemic, so it may take several additional

cycles for new enrollment patterns to settle.

Competitive research grants and contracts exceeded uni-

versity records in ﬁ scal year 2022-23 for both awards and

expenditures, indicative of the university’s robust execution

in this mission component.

State appropriations for public universities have been grow-

ing over recent biennia. While concerns of potential reces-

sion accompanied the most recent legislative session, the

actual state revenue forecast for the 2023-25 biennium was

positive enough to accommodate yet another increase in

higher education appropriations.

The most current ﬁ nancial uncertainty facing the university

is the realignment of the PAC-12 athletic conference. Man-

aging this new environment is actively underway. Given the

ability of university leadership to successfully navigate other

signiﬁ cant challenges, such as the pandemic, the university

is positioned to successfully navigate this challenge with a

focus on the following guiding principles:

• Prioritize the holistic development and well-being of stu-

dent-athletes to support their academic and athletic goals.

• Champion the ability of OSU student-athletes to compete

at the highest level possible.

• Provide the best experience for alumni and fans to inspire

engagement across all sports.

• Create visibility for OSU nationally and globally.

• Maximize ﬁ nancial resources for the OSU Athletics pro-

grams and support for student athletes.

These principles are in alignment with Oregon State’s un-

wavering focus on providing excellent instruction, research

and public service to its students and people throughout

Oregon, 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/forecastecorev.aspx

For the Years Ended June 30, 2023 2022 2021

Gain (Loss) on Sale of Assets (2)$ 1$ -$

Interest Expense (33) (34) (29)

Other Nonoperating Items 3 (1) (18)

Total Nonoperating Expenses (32)$ (34)$ (47)$

2023 | Annual Financial Report | 19

Statements of Net Position

As of June 30, 2023 2022

(Restated)

ASSETS

Current Assets

Cash and Cash Equivalents (Note 2) 98,898$ 161,653$

Collateral from Securities Lending (Note 2) 573 2,101

Accounts Receivable, Net (Note 3) 180,195 148,841

Notes Receivable, Net (Note 4) 41,316 2,544

Leases Receivable 1,843 1,603

Inventories 1,969 1,834

Prepaid Expenses 19,936 18,349

Total Current Assets 344,730 336,925

Noncurrent Assets

Cash and Cash Equivalents (Note 2) 8,680 48,327

Investments (Note 2) 479,454 473,236

Notes Receivable, Net (Note 4) 11,989 17,927

Leases Receivable 70,710 71,954

Net OPEB Asset (Note 18) 9,710 9,594

Capital Assets, Net of Accumulated Depreciation/Amortization (Note 5) 1,834,867 1,598,969

Total Noncurrent Assets 2,415,410 2,220,007

Total Assets 2,760,140$ 2,556,932$

DEFERRED OUTFLOWS OF RESOURCES (Note 6) 190,362$ 199,919$

LIABILITIES

Current Liabilities

Accounts Payable and Accrued Liabilities (Note 7) 170,350$ 127,705$

Deposits 601 729

Obligations Under Securities Lending (Note 2) 573 2,101

Current Portion of Long-Term Liabilities (Note 10) 102,631 68,734

Unearned Revenues 78,534 64,601

Total Current Liabilities 352,689 263,870

Noncurrent Liabilities

Long-Term Liabilities (Note 10) 953,473 979,822

Net Pension Liability (Note 17) 369,042 275,332

OPEB Liability (Note 18) 10,200 11,717

Asset Retirement Obligation (Note 11) 23,180 21,040

T

otal Noncurrent Liabilities 1,355,895 1,287,911

Total Liabilities 1,708,584$

1,551,781$

DEFERRED INFLOWS OF RESOURCES (Note 6) 198,330$ 304,985$

NET POSITION

Net Investment in Capital Assets 1,139,703$ 959,566$

Restricted For:

Nonexpendable Endowments 6,712 7,397

Expendable:

Gifts, Grants and Contracts 56,305 55,340

Student Loans 9,080 10,131

Capital Projects 20,475 2,283

Debt Service 662 2,262

OPEB Asset 9,710 9,594

Unrestricted (Note 12) (199,059) (146,488)

Total Net Position 1,043,588$ 900,085$

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

University

(In thousands)

20 | Oregon State University

Statements of Financial Position

As of June 30, 2023 2022

ASSETS

Cash and Cash Equivalents 10,486$ 9,788$

Investments 978,625 916,431

Contributions, Pledges and Grants Receivable, Net 104,589 107,687

Assets Held-For-Sale 5,549 6,426

Assets Held Under Split-Interest Agreements 53,415 53,447

Charitable Trusts Held Outside the Foundation 10,487 11,452

Prepaid Expenses and Other Assets 6,329 6,024

Property and Equipment, Net 25,387 25,180

Total Assets 1,194,867$ 1,136,435$

LIABILITIES

Accounts Payable and Accrued Liabilities 4,700$ 13,041$

Endowment Assets Held for OSU 56,353 54,208

Accounts Payable to the University 37,499 6,442

Obligations to Beneficiaries of Split-Interest Agreements 23,720 24,201

Deposits and Unearned Revenue 80 76

Long-Term Liabilities 1,267 20

Total Liabilities 123,619 97,988

NET ASSETS

Without Donor Restrictions 37,764 33,855

With Donor Restrictions 1,033,484 1,004,592

Total Net Assets 1,071,248 1,038,447

TOTAL LIABILITIES AND NET ASSETS

1,194,867$ 1,136,435$

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

Component Units

(In thousands)

2023 | Annual Financial Report | 21

Statements of Revenues, Expenses and Changes in Net Position

For the Years Ended June 30, 2023 2022

(Restated)

OPERATING REVENUES

Student Tuition and Fees (Net of Allowances of $141,712

and $124,060, respectively) 381,437$ 354,633$

Federal Grants and Contracts 313,851 248,666

State and Local Grants and Contracts 22,628 12,640

Nongovernmental Grants and Contracts 26,373 27,258

Educational Department Sales and Services 57,105 52,215

Auxiliary Enterprises (Net of Allowances of $3,798

and $2,995, respectively) 198,480 186,333

Other Operating Revenues 14,685 18,935

Total Operating Revenues 1,014,559 900,680

OPERATING EXPENSES

Instruction 344,082 322,425

Research 255,062 222,278

Public Service 194,607 164,913

Academic Support 87,307 87,588

Student Services 42,505 36,382

Auxiliary Programs 203,318 183,472

Institutional Support 125,623 123,393

Operation and Maintenance of Plant 43,050 40,817

Student Aid 38,787 50,319

Other Operating Expenses 68,165 66,611

Total Operating Expenses (Note 15) 1,402,506 1,298,198

Operating Loss (387,947) (397,518)

NONOPERATING REVENUES (EXPENSES)

Government Appropriations (Note 16) 288,868 277,771

Financial Aid Grants 57,708 72,555

Gifts 64,223 55,773

Investment Activity (Note 14) 29,989 (6,182)

- 22,419

Gain (Loss) on Sale of Assets, Net (1,780) 550

Interest Expense (33,575) (34,267)

Ot

her Nonoperating Items 3,264 (921)

Total Net Nonoperating Revenues 408,697 387,698

Gain (Loss) Before Other Revenues 20,750 (9,820)

OTHER REVENUES

Debt Service Appropriations (Note 16) 1,054 1,054

Capital Grants and Gifts 122,384 99,003

Changes to Permanent Endowments (685) 944

Total Net Other Revenues 122,753 101,001

Increase In Net Position 143,503 91,181

NET POSITION

Beginning Balance 900,085 807,401

Change in Accounting Principle - 1,503

Beginning Balance, Restated (Note 1, Section AD) 900,085 808,904

Ending Balance 1,043,588$ 900,085$

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

(In thousands)

University

COVID-19 Institutional Funding (Note 1, Section AB)

22 | Oregon State University

Statements of Activities

For the Years Ended June 30,

2023 2022

CHANGE IN NET ASSETS HELD WITHOUT DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 1,135$ 701$

Investment Income, Net 8,291 (16,431)

Net Assets Released From Restrictions and Other Transfers 123,774 120,392

Other Revenues 25,347 23,597

Total Revenues 158,547 128,259

EXPENSES

University Support 116,236 114,418

Management and General 15,586 14,036

Development 22,816 18,503

Total Expenses 154,638 146,957

Increase (Decrease) In Net Assets Held Without Donor Restrictions 3,909 (18,698)

Beginning Balance, Net Assets Held Without Donor Restrictions 33,855 52,553

Ending Balance, Net Assets Held Without Donor Restrictions 37,764$ 33,855$

CHANGE IN NET ASSETS HELD WITH DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 90,484$ 204,491$

Investment Income, Net 57,044 (67,954)

Change in Value of Life Income Agreements 1,245 (7,030)

Other Revenues 3,893 4,130

Net Assets Released From Restrictions and Other Transfers (123,774) (120,391)

Increase In Net Assets Held With Donor Restrictions 28,892 13,246

Beginning Balance, Net Assets Held With Donor Restrictions 1,004,592 991,346

Ending Balance, Net Assets Held With Donor Restrictions 1,033,484$ 1,004,592$

Beginning Balance 1,038,447 1,043,899

Increase (Decrease) In Total Net Assets 32,801 (5,452)

Ending Balance 1,071,248$ 1,038,447$

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

(in thousands)

Component Units

2023 | Annual Financial Report | 23

Statements of Cash Flows

For the Years Ended June 30, 2023 2022

(Restated)

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and Fees 381,116$ 353,195$

Grants and Contracts 366,462 274,751

Educational Department Sales and Services 58,737 52,098

Auxiliary Enterprise Operations 198,537 182,260

Payments to Employees for Compensation and Benefits (891,384) (833,268)

Payments to Suppliers (353,384) (316,103)

Student Financial Aid (45,160) (60,181)

Other Operating Receipts 15,092 18,109

Fiduciary Activities - Direct Student Loan Receipts 144,460 134,111

Fiduciary Activities - Direct Student Loan Disbursements (144,898) (134,203)

Net Cash Used by Operating Activities (270,422) (329,231)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Government Appropriations 288,868 277,771

Financial Aid Grants 57,708 72,555

Other Gifts and Private Contracts 61,281 53,924

Interest Payments on Noncapital Debt (620) (614)

COVID-19 Institutional Funding - 22,419

Net Agency Fund Receipts (Payments) (128) 9

Net Cash Provided by Noncapital Financing Activities 407,109 426,064

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Debt Service Appropriations 1,054 1,054

Capital Grants and Gifts 100,251 98,846

Proceeds from Capital Debt 275 -

Sales of Capital Assets 4,147 2,222

Purchases of Capital Assets (310,197) (202,766)

Interest Payments on Capital Debt (32,882) (34,287)

Principal Payments on Capital Debt (25,827) (22,408)

Other Receipts 1,004 1,715

Net Cash Used by Capital and Related Financing Activities (262,175) (155,624)

CASH FLOWS FROM INVESTING ACTIVITIES

N

et Sale (Purchase) of Investments 2,994 (43,067)

Interest Receipts on Investments and Cash Balances 20,092 12,861

Net Cash Provided (Used) by Investing Activities 23,086 (30,206)

NET DECREASE IN CASH AND CASH EQUIVALENTS (102,402) (88,997)

CASH AND CASH EQUIVALENTS

Beginning Balance 209,980 298,977

Ending Balance 107,578$ 209,980$

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

University

(In thousands)

24 | Oregon State University

Statements of Cash Flows - Continued

For the Years Ended June 30, 2023 2022

(Restated)

RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY

OPERATING ACTIVITIES

Operating Loss (387,947)$ (397,518)$

Adjustments to Reconcile Operating Loss to Net Cash Used by

Operating Activities:

Depreciation Expense 86,152 79,829

Fiduciary Student Loans (438) (92)

Changes in Assets and Liabilities:

Accounts Receivable (6,092) (14,795)

Notes Receivable 403 (1,001)

Inventories (135) (182)

Prepaid Expenses (1,587) (4,284)

Accounts Payable and Accrued Liabilities 39,209 25,052

Unearned Revenues 13,933 (765)

Long-Term Liabilities (11,039) (13,923)

Net Pension Liability 93,710 (176,568)

OPEB Asset/Liability (1,633) (11,723)

Asset Retirement Obligation 2,140 355

Changes to Deferred Outflows

9,557 (22,162)

Changes to Deferred Inflows (106,655) 208,546

NET CASH USED BY OPERATING ACTIVITIES (270,422)$ (329,231)$

NONCASH INVESTING, NONCAPITAL FINANCING, AND CAPITAL AND

RELATED FINANCING TRANSACTIONS

Capital Assets Acquired by Gifts-in-Kind 251$ 1,049$

Capital Assets Acquired by Accounts Payable 8,803 5,807

Capital Assets Acquired by Incurring Lease Obligations 2,586 2,411

Capital Assets Acquired by Incurring SBITA Obligations 8,723 24,136

Increase (Decrease) in Fair Value of Investments Recognized as a

Component of Investment Activity 14,340 (17,580)

Gain (Loss) on Sale of Investments Recognized as a Component of

Investment Activity (4,443) (1,463)

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

University

(In thousands)

2023 | Annual Financial Report | 25

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

1. ORGANIZATION AND SUMMARY OF

SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

Oregon 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 annual comprehensive

ﬁ nancial report (ACFR).

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) State-

ment 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 incor-

porated 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 en-

courage 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 li-

ated entities. Both foundations are nonproﬁ t entities under

Section 501(c)(3) of the Internal Revenue Code. The major-

ity 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 22 University

Foundations for additional information regarding the related

foundations reported as Component Units.

B. Financial Statement Presentation

The 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 scal

years ended June 30, 2023 and 2022 are discretely pre-

sented as discussed above. The foundations’ ﬁ nancial state-

ments are prepared in accordance with the pronouncements

of the Financial Accounting Standards Board (FASB). As

such, certain revenue recognition criteria and presentation

features are diﬀ erent from GASB revenue and presentation

criteria. Accordingly, those ﬁ nancial statements have been

consolidated and reported on separate pages following their

respective ﬁ nancial statement counterparts of the univer-

sity. No modiﬁ cations have been made to the foundations’

ﬁ nancial information included in the university’s ﬁ nancial

report.

C. Basis of Accounting

For 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 STANDARDS

In May 2020, GASB issued Statement No. 96, Subscription-

Based Information Technology Arrangements. GASB State-

ment No. 96 provides guidance on the accounting and

ﬁ nancial reporting for subscription-based information

technology arrangement (SBITAs) for government end-users

and is eﬀ ective for the ﬁ scal year ended June 30, 2023. This

Statement (1) deﬁ nes a SBITA; (2) establishes that a SBITA

results in a right-to-use subscription asset—an intangible as-

set—and a corresponding subscription liability; (3) provides

the capitalization criteria for outlays other than subscription

payments, including implementation costs of a SBITA; and

(4) requires note disclosures regarding a SBITA. This state-

ment changes how the university accounts for and reports

SBITAs and diﬀ erentiates them from regular operating

expenses by capitalizing and amortizing them. See Note 1,

Section AD for further details regarding the impacts to the

ﬁ scal year 2022 ﬁ nancial statements due to the implementa-

tion of this standard.

26 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

In April 2022, GASB issued Statement No. 99, Omnibus

2022. GASB Statement No. 99 aims to enhance compara-

bility in accounting and ﬁ nancial reporting and to improve

the consistency of authoritative literature by addressing (1)

practice issues that have been identiﬁ ed during implemen-

tation and application of certain GASB Statements and (2)

accounting and ﬁ nancial reporting for ﬁ nancial guarantees.

The following practice issues were addressed by the imple-

mentation of this Statement during ﬁ scal year 2023:

• Clariﬁ cation of provisions in Statement No. 87, Leases, as

amended, related to the determination of the lease term,

classiﬁ cation of a lease as a short-term lease, recognition

and measurement of a lease liability and a lease asset, and

identiﬁ cation of lease incentives

• Clariﬁ cation of provisions in Statement No. 96, Subscrip-

tion-Based Information Technology Arrangements, related to

the subscription-based information technology arrange-

ment (SBITA) term, classiﬁ cation of a SBITA as a short-term

SBITA, and recognition and measurement of a subscription

liability

• Disclosures related to nonmonetary transactions

• Terminology updates related to certain provisions of State-

ment No. 63, Financial Reporting of Deferred Outﬂ ows of

Resources, Deferred Inﬂ ows of Resources, and Net Position

The following practice issues addressed by this Statement

will be implemented during ﬁ scal year 2024:

• Terminology used in Statement 53 to refer to resource

ﬂ ows statements.

The following practice issues addressed by this Statement

are not currently applicable to the university:

• Classiﬁ cation and reporting of derivative instruments with-

in the scope of Statement No. 53, Accounting and Financial

Reporting for Derivative Instruments, that do not meet the

deﬁ nition of either an investment derivative instrument or

a hedging derivative instrument

• Clariﬁ cation of provisions in Statement No. 94, Public-

Private and Public-Public Partnerships and Availability Pay-

ment Arrangements, related to (a) the determination of the

public-private and public-public partnership (PPP) term and

(b) recognition and measurement of installment payments

and the transfer of the underlying PPP asset

• Extension of the period during which the London Inter-

bank Oﬀ ered Rate (LIBOR) is considered an appropriate

benchmark interest rate for the qualitative evaluation of

the eﬀ ectiveness of an interest rate swap that hedges the

interest rate risk of taxable debt

• Pledges of future revenues when resources are not re-

ceived by the pledging government

• Accounting for the distribution of beneﬁ ts as part of the

Supplemental Nutrition Assistance Program (SNAP)

• Clariﬁ cation of provisions in Statement No. 34, Basic Finan-

cial Statements— and Management’s Discussion and Analy-

sis—for State and Local Governments, as amended, related to

the focus of the government-wide ﬁ nancial statements

In June 2022, GASB issued Statement No. 100, Account-

ing Changes and Error Corrections - a

n amendment of GASB

Statement No. 62. This Statement deﬁ nes four categories

of accounting changes and error corrections and related ac-

counting and ﬁ nancial reporting requirements: (1) Changes

in accounting principle must be reported retroactively by

restating prior periods; (2) changes in accounting estimate

must be reported prospectively by recognizing the change

in the current period; (3) changes to and within the ﬁ nancial

reporting entity must be reported by adjusting beginning

balances of the current period; and (4) error corrections re-

sulting from mathematical mistakes, misuse of information,

or misapplication of accounting principle should be reported

retroactively by restating prior periods. This Statement is

implemented by the university for the ﬁ scal year ended June

30, 2023.

UPCOMING ACCOUNTING STANDARDS

In June 2022, GASB issued Statement No. 101, Compensated

Absences. This Statement requires that liabilities for compen-

sated absences be recognized for (1) leave that has not been

used and (2) leave that has been used but not yet paid in

cash or settled through noncash means. A liability should be

recognized for leave that has not been used if (a) the leave is

attributable to services already rendered, (b) the leave accu-

mulates, and (c) the leave is more likely than not to be used

for time oﬀ or otherwise paid in cash or settled through

noncash means. This statement will impact the university’s

calculation of the compensated absences liability and is cur-

rently being reviewed. This statement will be eﬀ ective for

the ﬁ scal year ended June 30, 2025.

D. Cash and Cash Equivalents

Cash 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. Investments

Investments 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

2023 | Annual Financial Report | 27

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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. Receivables

Accounts 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 receiv-

able 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 associ-

ated construction projects. The university does not currently

hold any notes receivable from the state related to construc-

tion reimbursements.

G. Inventories

Inventories 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 Assets

Capital 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 esti-

mated 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 expen-

ditures exceed the capitalization thresholds of $50,000 to

$100,000, depending on the type of real property. Intan-

gible 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. In addition, certain

research costs for construction of assets funded by and on

behalf of federal agencies are expensed as incurred. (In ﬁ scal

years 2023 and 2022, this included the National Science

Foundation’s Regional Class Research Vessel Program.) In

these cases, the federal agencies control the assets and

retain title.

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/addi-

tions 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, mu-

seum collections, works of art, historical treasures, or library

special collections.

I. Leases

The university determines if an arrangement is a lease at

inception. Lessee arrangements include Right-of-Use (ROU)

lease assets in capital assets and lease liabilities in current

and noncurrent long-term liabilities in the statements of net

position.

ROU lease assets represent the university’s control of the

right to use an underlying asset for the noncancelable lease

term, as speciﬁ ed in the contract, in an exchange or ex-

change-like transaction. ROU lease assets are recognized at

the commencement date based on the initial measurement

of the lease liability, plus any payments made to the lessor at

or before the commencement of the lease term and certain

direct costs. ROU lease assets are amortized in a systematic

and rational manner over the shorter of the lease term or

the useful life of the underlying asset.

Lease liabilities represent the university’s obligation to make

lease payments arising from the lessee arrangement. Lease

liabilities are recognized at the commencement date based

on the present value of expected lease payments over the

lease term, less any lease incentives. Interest expense is

recognized ratably over the contract term. The lease term

may include options to extend or terminate the lease when

it is reasonably certain that the university will exercise that

option.

Per OSU policy, the university has elected to recognize pay-

ments for short-term leases with a lease term of 12 months

or less and leases with a present value of less than ﬁ ve thou-

sand dollars as expenses as incurred, and these leases are

not included as lease liabilities or right-to-use lease assets

on the statements of net position.

Lessor arrangements are included in lease receivables and

deferred inﬂ ows of resources in the statements of net posi-

tion. Lease receivables represent the university’s claim to re-

ceive lease payments over the lease term, as speciﬁ ed in the

contract, in an exchange or exchange-like transaction. Lease

receivables are recognized at commencement date based on

the present value of expected lease payments over the lease

term, reduced by any provision for estimated uncollectible

28 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

amounts. Interest revenue is recognized ratably over the

contract term.

Deferred inﬂ ows of resources related to leases are rec-

ognized at the commencement date based on the initial

measurement of the lease receivable, plus any payments

received from the lessee at or before the commencement of

the lease term that relate to future periods, less any lease

incentives paid to, or on behalf of, the lessee at or before the

commencement of the lease term. The deferred inﬂ ows re-

lated to leases are recognized as lease revenue in a system-

atic and rational manner over the lease term.

OSU recognizes payments received for short-term leases

with a lease term of 12 months or less as revenue as the pay-

ments are received. Per university policy, OSU also recog-

nizes payments received on leases with an initial calculated

net present value of ﬁ ve thousand dollars or less as revenue

as the payments are received. These leases are not included

as lease receivables or deferred inﬂ ows on the statements of

net position.

J. SBITAs

Subscription based information technology arrangements

(SBITAs) represent the university’s right to use and control

another party’s information technology (IT) software, alone

or in combination with underlying tangible IT assets, for

the noncancelable term, as speciﬁ ed in the contract, in

an exchange or exchange-like transaction. The university

determines if an arrangement is a SBITA at inception. SBITA

arrangements include Right-of-Use (ROU) assets in capital

assets and SBITA liabilities in current and noncurrent long-

term liabilities in the statements of net position.

ROU SBITA assets are recognized at the commencement

date based on the initial measurement of the SBITA liability,

plus any payments made to the vendor at or before the com-

mencement of the contract term and initial implementation

costs. ROU SBITA assets are amortized in a systematic and

rational manner over the shorter of the subscription term or

the useful life of the underlying IT asset.

SBITA liabilities represent the university’s obligation to make

subscription payments arising from the arrangement. SBITA

liabilities are recognized at the commencement date based

on the present value of expected subscription payments

over the SBITA term, less any contract incentives. Interest

expense is recognized ratably over the subscription term.

The arrangement term may include options to extend or

terminate when it is reasonably certain that the university

will exercise that option.

Per OSU policy, the university has elected to recognize pay-

ments for short-term SBITAs having a term of 12 months or

less, or a present value of less than $100,000 as expenses as

incurred. SBITA contracts that fall into these categories are

not included as assets or liabilities in the statement of net

position.

K. Unearned Revenues

Unearned 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).

L. Compensated Absences

OSU 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.

M. Net Pension Liability

The net pension liability, deferred outﬂ ows of resources and

deferred inﬂ ows of resources related to pensions, and pen-

sion 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 actuarially determined and allocated to the universi-

ty by Oregon PERS. See Note 17 Employee Retirement Plans

for a detailed description of the liability and the proportion-

ate share methodology.

N. Net OPEB (Asset)/Liability

The university’s net PERS RHIA OPEB asset, net PERS RHIPA

OPEB (asset)/liability and the total PEBB OPEB liability

along with the associated deferred outﬂ ows of resources,

deferred inﬂ ows of resources and expenses are allocated

to the university by the Oregon Department of Administra-

tive Services based on their proportionate share . See Note

18 Other Post-Employment Beneﬁ ts (OPEB) for a detailed

description of each plan and the proportionate share meth-

odology for each.

O. Asset Retirement Obligations

An 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 one tangible capital asset and therefore recognizes

a liability and corresponding deferred outﬂ ow of resources.

The deferred outﬂ ow of resources will be amortized and

expensed over the remaining life of the asset. See Note 10

Asset Retirement Obligations for additional information.

2023 | Annual Financial Report |

29

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

P. 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 peri-

ods, 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 position that is

applicable to future periods, and have a negative eﬀ ect on

net position that is similar to liabilities, but are not consid-

ered liabilities. Deferred outﬂ ows and inﬂ ows are related to

deﬁ ned beneﬁ t pension plans, deﬁ ned beneﬁ t OPEB plans,

and asset retirement obligations. See Note 6 Deferred Out-

ﬂ ows and Inﬂ ows of Resources, Note 11 Asset Retirement

Obligations, Note 17 Employee Retirement Plans, and Note

18 Other Post-employment Beneﬁ ts (OPEB).

Q. Net Position

OSU’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, less outstanding debt obligations related to

those capital assets plus unspent bond proceeds.

RESTRICTED – NONEXPENDABLE ENDOWMENTS

Restricted-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 – EXPENDABLE

Restricted-Expendable includes resources which OSU is le-

gally or contractually obligated to spend in accordance with

restrictions stipulated by external parties.

UNRESTRICTED

Unrestricted net position represents resources that may be

used at the discretion of the board.

R. Restricted/Unrestricted Resources

The university has no formal policy addressing which re-

sources to use when both restricted and unrestricted net

position are available for the same purpose. University per-

sonnel 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.

S. Endowments

The 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

income. The university board policy is to distribute 4 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, 2023, represent the original corpus

of true endowment funds of $2,385,268 and the full non-

expendable fair value of the real estate endowments of

$4,327,021. Non-expendable endowments on the State-

ment of Net Position at June 30, 2022, 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

$5,013,128.

The university’s endowments are identiﬁ ed and invested as

follows (in thousands):

T. Income Taxes

OSU 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

2023 and 2022.

June 30,

2023

June 30,

2022

True Endowments

Corpus 2,385$ 2,384$

Market Valuation 2,802 2,636

Real Estate 4,327 5,013

Total 9,514 10,033

Quasi-Endowments

Corpus 69,624 64,129

Market Valuation 41,306 24,359

Real Estate 4,855 5,055

Total 115,785 93,543

Total Fair Value of Endowments 125,299$ 103,576$

Invested Endowments:

Timber and Forestry Land Held by OSU 9,182$ 10,068$

Invested by OSU Foundation 56,353 54,209

Separately Invested Equity Investments 56,878 36,905

Invested in the Public University Fund (PUF) 213 169

Total Invested Endowments 122,626 101,351

Endowment Cash in PUF 98 150

Long-Term Receivable from Casey Family Trust 2,575 2,075

Total Fair Value of Endowments 125,299$ 103,576$

30 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

U. Revenues and Expenses

OSU 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. For ﬁ scal years 2022, non-

operating revenues included Higher Education Emergency

Relief Funds (HEERF). Nonoperating expenses are deﬁ ned in

GASB Statement No. 9, Reporting Cash Flows of Proprietary

and Nonexpendable Trust Funds and Governmental Entities

That Use Proprietary Fund Accounting, and GASB Statement

No. 34, Basic Financial Statements - and Management’s Discus-

sion and Analysis - for State and Local Governments. Examples

of nonoperating expenses include interest on capital debt

and bond expenses.

V. State Support

OSU 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 16 Government Appropriations for details on appro-

priations.

In addition to appropriations, the state provides funding for

plant facilities on the university’s campuses. Capital proj-

ects for new facilities and capital improvements and repairs

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

bonding 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 Position when 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.

W. Allowances

Student 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

$87,464,108 and $73,851,818 for the ﬁ scal years ended

2023 and 2022, 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 $55,399,906 and $51,446,205 for the ﬁ scal

years ended 2023 and 2022, respectively. Bad debt expense

related to student accounts is also reported as an allow-

ance against operating revenues and was estimated to be

$2,645,857 and $1,756,950 for the ﬁ scal years ended 2023

and 2022, respectively.

X. Federal Student Loan Programs

OSU receives proceeds from the Federal Direct Student

Loan Program (FDSLP). GASB Statement No. 84 allows

business-type activities, such as OSU, to report activities

that would otherwise be considered custodial funds in OSU’s

Statement of Net Position and Statement of Cash Flows as

an operating activity if upon receipt, the funds are normally

expected to be held for three months or less. Funds associ-

ated with the FDSLP meet this exception and are reported as

such. OSU disbursed federal student loans in the amount of

$144,898,151 and $134,202,860 for the ﬁ scal years ended

2023 and 2022, respectively.

2023 | Annual Financial Report | 31

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

Y. Deposit Liabilities

Deposit 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.

Z. Perkins Loan Program Termination

OSU 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.

Perkins loans are reported in Notes Receivable, net of allow-

ances for uncollectible amounts. Amounts due for repay-

ment to the ED for the FCC portion are reported as cur-

rent and noncurrent long-term liabilities. Net Perkins loan

amounts are reported in Net Position under Expendable for

Student Loans.

AA. Related-Party Transactions

OSU has an ongoing 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 ar-

rangement whereby Coach Casey 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 the IRS applicable federal rate (AFR) in eﬀ ect on

the day each $215,000 loan advance is disbursed. The PCFT

is using the loan funds to purchase a life insurance policy

on Pat Casey’s wife. The original 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 receiv-

able.

OSU has an ongoing related-party transaction with cur-

rent football head coach Jonathan Smith. The parties have

agreed to a split-dollar arrangement whereby Coach Smith

has agreed to reduce his salary by $500,000 annually and

the university has agreed to pay the policy premium on a life

insurance policy for Coach Smith in the amount of $500,000

annually for ﬁ scal years 2021 through 2026. The annual pay-

ment of the insurance policy premium results in a promis-

sory note loan from the university to Coach Smith. Each

$500,000 is loaned at the IRS applicable federal rate (AFR)

in eﬀ ect on the day the payment is made, with interest com-

pounded annually. Repayment of the premium loan amount

is due either upon the death of Coach Smith or mutual

agreement of both parties to terminate the loan agreement.

Interest on the loans may be pre-paid or paid at the time of

termination of the agreement. The loan from OSU to Coach

Smith is reported in non-current notes receivable.

AB. COVID-19 Relief Funding

The Coronavirus Aid, Relief, and Economic Security (CARES)

Act, passed by Congress in March 2020, provided budget-

ary relief to higher education institutions through numerous

provisions. Of the $30.75 billion allotted to the Education

Stabilization Fund through the CARES Act, Congress set

aside approximately $14.25 billion for the Higher Education

Emergency Relief Fund (HEERF). Due to the diﬀ erent formu-

las and discretionary allocations Congress created within the

CARES Act, the HEERF is comprised of multiple programs

and distribution allocations.

The Coronavirus Response and Relief Supplemental Ap-

propriations Act (CRRSAA) was approved by Congress in

December 2020 as part of the Consolidated Appropriations

Act of 2021. The law authorized $23 billion through the

Education Stabilization Fund speciﬁ cally for higher educa-

tion. These funds were allocated to institutions using the

HEERF in the CARES Act and this portion of relief funding is

commonly referred to as HEERF II. The CRRSA Act requires

institutions to provide the same amount in emergency aid to

students as they received under the CARES Act, and allows

them to use additional funds on institutional expenses to

reimburse themselves for expenses that occurred due to

continuing operations during the pandemic; defray losses

due to decreased revenue; implement information technol-

ogy infrastructure and distance learning capacity for current

and future students; fund payroll; and faculty and staﬀ

professional development.

In March 2021, Congress passed additional COVID relief

funding in the American Rescue Plan (ARP). This law autho-

rized $39.6 billion to higher education through the Higher

Education Emergency Relief Fund (known as HEERF III). Sim-

ilar to the CARES Act, institutions must spend at least 50%

of their allocation on emergency ﬁ nancial aid grants directly

to students. Institutions are required to spend a “reasonable

and necessary” amount of institutional funds on monitor-

ing and controlling the spread of COVID-19 on their campus

and on outreach to students alerting them of opportunities

to receive a ﬁ nancial aid adjustment due to lost income as

a result of the pandemic. Additionally, institutions may use

remaining funds to replace lost revenue, fund emergency

expenses, or meet payroll costs, among other expenses.

Institutions who received HEERF I or HEERF II funds were

automatically awarded HEERF III funds.

32 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

In total OSU was awarded and received $39,357,681 in

CARES student aid funding, $48,901,794 in institutional

support funding and $219,774 for the Strengthening Institu-

tions Program (SIP) speciﬁ cally for OSU-Cascades. All funds

were received and expensed prior to ﬁ scal year 2023.

As of June 30, 2022, OSU received and dispersed directly

to students as emergency ﬁ nancial aid grants the remaining

$23,797,683 of HEERF III student allocation and recognized

nonoperating ﬁ nancial aid grant revenue and student aid

operating expense for the receipt and disbursement of these

funds. OSU received $22,299,308 for the remaining institu-

tional allocation and recognized other nonoperating revenue

for the total amount received. Expenditures identiﬁ ed as

allowable relate to COVID testing and tracing expenses,

foregone housing and dining auxiliary revenues and lost

tuition revenues attributed to the pandemic. In addition,

OSU received the remaining $119,453 for the Strengthen-

ing Institutions Program (SIP), inclusive of HEERF I, II, and

III. Funding through this program could be used for student

aid or to defray institutional expenses, which may include

lost revenue, reimbursement for expenses already incurred,

technology costs associated with the transition to distance

education, faculty and staﬀ training, and payroll. These

funds were used to oﬀ set lost conference and sport camp

revenues attributed to the pandemic.

OSU was also awarded $526,133 through the Governor’s

Emergency Education Relief Fund. Of the total awarded,

$399,923 was allocated for grants to students and $126,210

was allocated for institutional support. The total of this

funding was received and dispersed in ﬁ scal year 2022.

AC. Use of Estimates

The 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.

AD. Reclassiﬁ cations and Restatements

Certain amounts within the June 30, 2022 ﬁ nancial state-

ments have been reclassiﬁ ed to conform to the June 30,

2023 presentation. The reclassiﬁ cations had no eﬀ ect on

previously reported net position. As of June 30, 2022, the

university has reclassiﬁ ed $8,871,604 related to Federal

land grant funding from Government Appropriations to

Federal Grants and Contracts.

In addition, the implementation of GASB Statement No. 96

in ﬁ scal year 2023 required the retrospective restatement

of all ﬁ nancial years presented. Accordingly, ﬁ scal year 2022

ﬁ nancial information has been restated to reﬂ ect the imple-

mentation.

The university’s Statement of Net Position and Statement of

Revenues, Expenses and Changes in Net Position have been

restated for the implementation of GASB 96 and for the

reclassiﬁ cation of federal land grant funds as follows (in

thousands):

2. CASH AND INVESTMENTS

At June 30, 2023 and 2022, 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. Six Oregon

public universities, including OSU, and the Public Univer-

sities Risk Management and Insurance Trust, commingle

their operating cash and investments together in the Public

University Fund (PUF). The investments held in the PUF are

managed by the OST and administered by the statutorily

deﬁ ned designated university. OSU is currently serving as

the designated university for the PUF pool. Each underlying

investment pool has an investment policy and set of objec-

tives identifying risk and return parameters for the respec-

tive investment pool. The OST invests these deposits in high

grade, dollar-denominated, short and intermediate-term

ﬁ xed income securities. The Oregon Investment Council

(OIC) provides oversight and counsel on the investment

policies, activities, and performance 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.

As of June 30, 2022

Statement of Net Position

As Originally

Reported

Restatement/

Reclassification As Restated

Total Assets 2,538,093$ 18,839$ 2,556,932$

Deferred Outflows of Resources 199,919 - 199,919

Total Current Liabilities (256,626) (7,244) (263,870)

Total Noncurrent Liabilities (1,278,769) (9,142) (1,287,911)

Deferred Inflows of Resources (304,985) - (304,985)

Ending Net Position

897,632$ 2,453$ 900,085$

Total Operating Revenues 891,808$ 8,872$ 900,680$

Total Operating Expenses (1,299,427) 1,229 (1,298,198)

Nonoperating Revenues (Expenses) 497,850 (9,151) 488,699

Beginning Net Positon 807,401 1,503 808,904

Ending Net Position

897,632$ 2,453$ 900,085$

For the Year Ended June 30, 2022

Statement of Revenues, Expenses and Changes in Net Position

2023 | Annual Financial Report | 33

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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. It is likely that the value of the investment securi-

ties will ﬂ uctuate during short periods of time, and it is pos-

sible 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 www.oregon.gov/treasury/news-

da

ta/pages/treasury-news-reports.aspx#annualrep

A. Cash and Cash Equivalents

DEPOSITS WITH OREGON STATE TREASURY

OSU 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 within 24 hours of receipt. At ﬁ scal years ended

June 30, 2023 and 2022, OSU cash and cash equivalents on

deposit at OST were $67,690,103 and $170,569,093, respec-

tively. Cash and cash equivalents on deposit at ﬁ scal years

ended June 30, 2023 and 2022 included $10,164,590 and

$50,510,019, respectively, in unspent taxable revenue bond

proceeds held in a separate OST account in the OSTF.

OTHER DEPOSITS

For the years ended June 30, 2023 and 2022, OSU had cash

at U.S. Bank held for Title IV Perkins Loans of $2,290,111

and $3,386,303, respectively. OSU held cash at JPMorgan

Chase bank for operations of $37,525,082 and $35,930,881,

respectively, for the year ended June 30, 2023 and 2022. Ad-

ditionally, for the years ended June 30, 2023 and 2022, OSU

had vault and petty cash balances of $72,492 and $93,258,

respectively.

CUSTODIAL CREDIT RISK—DEPOSITS

Custodial 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 US Bank and JPMorgan Chase

bank are collateralized, therefore invested continuously,

resulting in low credit risk.

FOREIGN CURRENCY RISK—DEPOSITS

Deposits 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 $1,419,174 and

$870,885 at June 30, 2023 and 2022, respectively. Amounts

deposited in foreign bank accounts are reported as prepaid

expense on the ﬁ nancial statements.

B. Investments

OSU’s operating funds are invested in the PUF and sepa-

rately managed ﬁ xed income portfolios. University invest-

ments in the PUF are invested in the Core Bond Fund (CBF)

managed by the OST. The CBF invests primarily in interme-

diate-term ﬁ xed income securities and is managed with an

investment objective to maximize total return (i.e., princi-

pal 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 investment policy. OSU

Foundation manages the university’s permanent endowment

assets. 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

June 30,

2023

June 30,

2022

Unrestricted 123,203$ 135,363$

Bond Proceeds

Reserved for Capital

237,924 196,132

Available for Operations

13,153 103,594

Restricted For:

Endowments 122,724 101,499

Capital 32,543 89,782

Student Aid 10,828 11,405

Debt Service 11,278 10,166

Payroll Withholdings

31,434 28,905

Student Groups and Campus

Organizations

703 488

Perkins Title IV Cash

2,290 3,386

Petty Cash

73 93

Supplemental Retirement

Plan Investment

535 489

Unrealized Gain on

Investments

344 1,914

Total Cash and Investments

587,032$ 683,216$

34 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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, board-directed strategic investments

and a land grant endowment invested in the PUF. There are

board-designated funds invested in equities as a long-term

investment strategy which aligns acceptable risk tolerance

associated with investment duration as deﬁ ned in the invest-

ment policy.

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, 2023 and 2022.

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 by source are classiﬁ ed and invested as

follows (in thousands):

Investments in the PUF CBF pool, the OSU Foundation

pooled investments and OSU’s other separate investments

are invested as follows:

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 policies

for its operating and endowment assets. As of June 30,

2023, approximately 99.2 percent of the PUF CBF pool was

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, totaled $356,387,522.

Fixed income securities which have not been evaluated by

the rating agencies totaled $21,120,141. The PUF CBF

totaled $380,527,141, of which OSU owned $118,501,184,

or 31.1 percent. Of the OSU endowments managed by the

OSU Foundation and allocated to ﬁ xed income, all invest-

ments were held in mutual funds which have not been

evaluated by the rating agencies. Additionally, OSU has

June 30,

2023

June 30,

2022

Operating Funds

PUF Core Bond Fund 118,288$ 133,105$

Other Investment Funds 238,005 238,292

Total Operating Funds 356,293 371,397

Endowment Funds

Invested by OSU Foundation 56,353 54,209

Timber and Forestry Land 9,182 10,068

Board Directed Endowment 56,878 36,905

PUF Core Bond Fund 213 169

Total Endowment Funds 122,626 101,351

Separately Held Investments 535 488

Total Investments 479,454$ 473,236$

June 30,

2023

June 30,

2022

PUF Core Bond Fund

Fixed Income 100.0% 100.0%

Other Investment Funds

Fixed Income 97.9% 95.6%

Equities 2.1% 4.4%

100.0% 100.0%

Board Directed Endowment

Equities 100.0% 100.0%

Invested by OSU Foundation

Equities 47.2% 48.5%

Alternative 41.5% 46.0%

Fixed Income 11.3% 5.5%

100.0% 100.0%

Timber and Forestry Land

Alternative 100.0% 100.0%

Separately Held Investments

Fixed Income 100.0% 100.0%

June 30,

2023

June 30,

2022

Investment Type:

Global Equities

392,078$ 369,629$

Global Fixed Income

155,597 118,551

Private Equity Partnerships

225,516 209,495

Absolute Returns

67,116 83,477

Real Assets

57,915 60,126

Corporate Stocks and Bonds

20,826 13,430

Real Estate Held for Investments

9,032 8,890

Government Securities and

Municipal Bonds

5,814 5,642

Domestic Equities

- 6,686

Mutual Funds

2,342 2,839

Investment Receivables

600 (1,185)

Cash Equivalents

41,789 38,851

Total Investments 978,625$ 916,431$

2023 | Annual Financial Report | 35

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

$56,878,194 of separately managed Board designated

endowments invested in environmentally and socially

responsible equity funds and $4,914,960 in commercially

developed equity investments, none of which are exposed to

credit risk. The university’s separately managed ﬁ xed income

securities were rated as follows:

As of June 30, 2022, approximately 100 percent of the PUF

CBF pool was 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,

totaled $311,293,863. Fixed income securities which have

not been evaluated by the rating agencies totaled

$14,714,190. The PUF CBF totaled $326,008,053, of which

OSU owned $133,273,926, or 40.9 percent. Of the OSU

endowments managed by the OSU Foundation and allocated

to ﬁ xed income, all investments were held in mutual funds

which have not been evaluated by the rating agencies.

Additionally, OSU has $36,905,015 of separately managed

Board designated endowments invested in environmentally

and socially responsible equity funds and $10,381,608 in

commercially developed equity investments, none of which

are exposed to credit risk. The university’s separately

managed ﬁ xed income securities were rated as follows:

CUSTODIAL CREDIT RISK—INVESTMENTS

Custodial 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. At June 30, 2023

and 2022, none of the investment securities were uninsured

and unregistered, with securities held by the counterparty or

by its trust department or agent but not in the University’s

name.

CONCENTRATION OF CREDIT RISK

Concentration of credit risk refers to potential losses if

total investments are concentrated with one or few issuers.

To mitigate the concentration of credit risk in the PUF, 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, except

for U.S. Government and Agency issues. Per policy, both

the PUF and the separately managed ﬁ xed income portfo-

lios held no securities from a single issuer that exceeded

ﬁ ve percent of the bond portfolios. The investment policy

restricts, as of the date of purchase, investment in equities

to no more than 15% of total operating assets, excluding

unspent bond proceeds. The separately managed equity

funds held were below 15% of the total investment portfolio

at the time of the investment for the year ended June 30,

2023 and 2022.

FOREIGN CURRENCY RISK—INVESTMENTS

Foreign 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,

2023 or 2022.

Of the OSU Endowments invested by the OSU Founda-

tion at June 30, 2023, $15,068,678, or 26.7 percent, were

held subject to foreign currency risk. At June 30, 2022,

$14,132,044, or 26.1 percent were held subject to foreign

currency risk.

Of the separately managed investments at June 30, 2023,

$17,083,302, or 30.0 percent, were held subject to foreign

currency risk. At June 30, 2022, $10,790,502, or 29.2 per-

cent, were held subject to foreign currency risk

INTEREST RATE RISK

Investments 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, 2023, securities

held in the PUF CBF subject to interest rate risk totaled

$377,507,663 and had an average duration of 3.98 years.

Securities of the OSU Endowment investments invested by

the OSU Foundation held subject to interest rate risk totaled

$5,190,072 and had an average duration of 5.5 years.

Separately managed ﬁ xed income investments held subject

to interest rate risk were as follows:

As of June 30, 2022, securities held in the PUF CBF subject

to interest rate risk totaled $326,008,053 and had an

average duration of 3.70 years. Securities of the OSU

Endowment investments held subject to interest rate risk

Investment Type AAA AA A BBB Total

Cash & Equivalents 9,833$ -$ -$ -$ 9,833$

Corporate Bonds 1,403 9,536 43,023 23,618 77,580

Government Related 2,429 - - - 2,429

Money Market - 1,999 20,984 - 22,983

Municipal Bonds 8,904 24,126 - - 33,030

Asset-Backed Securities 18,366 30,118 10,569 - 59,053

Treasury Notes & Bonds 28,182 - - - 28,182

Total 69,117$ 65,779$ 74,576$ 23,618$ 233,090$

Investment Type AAA AA A BBB Total

C

ash & Equivalents 14,697$ -$ -$ -$ 14,697$

C

orporate Bonds 1,150 10,415 46,319 31,932 89,816

G

overnment Related 4,850 - - - 4,850

M

unicipal Bonds 7,851 22,399 - - 30,250

A

sset-Backed Securities 17,941 36,621 19,303 - 73,865

T

reasury Notes & Bonds 14,433 - - - 14,433

Total 60,922$ 69,435$ 65,622$ 31,932$ 227,911$

Investment Type Fair Value

Duration

in years

Cash & Equivalents

9,833$ 0.00

Corporate Bonds

77,580 1.65

Government Related

2,429 1.26

Money Market

22,983 0.05

Municipal Bonds

33,030 1.41

Asset-Backed Securities 59,053 1.69

Treasury Notes & Bonds 28,182 0.86

Total

233,090$

Average Duration

1.30

36 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

totaling $1,989,436 had an average duration of 4.91 years.

Separately managed ﬁ xed income investments held subject

to interest rate risk were as follows:

FAIR VALUE MEASUREMENT

Investments 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

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, 2023

and 2022 totaled $118,501,184 and $133,273,926, respec-

tively.

The following tables presents OSU’s separately managed

equity and ﬁ xed income investments by level within the

valuation hierarchy as of June 30, 2023 and 2022:

Investment Type Fair Value

Duration in

years

Cash & Equivalents

14,697$ 0.00

Corporate Bonds

89,816 1.60

Government Related

4,850 0.91

Municipal Bonds

30,250 1.67

Asset-Backed Securities 73,865 1.90

Treasury Notes & Bonds 14,433 2.44

Total

227,911$

Avera

g

e Duration

1.64

Level 1 Level 2 Level 3 Total

Investment Type:

Corporate Bonds -$ 77,580$ -$ 77,580$

Government Related - 2,429 - 2,429

Municipal Bonds - 33,030 - 33,030

Asset-Backed Securities - 59,053 - 59,053

Treasury Notes & Bonds - 28,182 - 28,182

Domestic Equity 43,579 - - 43,579

International Equity 17,949 - - 17,949

Timber and Forest Land - - 9,182 9,182

61,528$ 200,274$ 9,182$ 270,984$

At Amortized Cost:

Money Market Funds 22,983

Cash & Equivalents

10,098

Total Investments

304,065$

Level 1 Level 2 Level 3 Total

Investment Type:

Corporate Bonds -$ 89,375$ -$ 89,375$

Government Related - 4,845 - 4,845

Municipal Bonds - 30,162 - 30,162

Asset-Backed Securities - 73,813 - 73,813

Treasury Notes & Bonds - 14,369 - 14,369

Domestic Equity 35,563 - - 35,563

International Equity 11,588 - - 11,588

T

imber and Forest Land - - 10,068 10,068

47,151$ 212,564$ 10,068$ 269,783$

Cash & Equivalents

14,833

Investments Receivable

649

Total Investments

285,265$

Assets at fair value as of June 30, 2022

Assets at fair value as of June 30, 2023

2023 | Annual Financial Report | 37

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

COMPONENT UNIT INVESTMENTS BY LEVEL

The following tables present the component unit invest-

ments by level within valuation hierarchy as of June 30, 2023

and 2022:

C. Securities Lending

In 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, 2023

and 2022.

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, 2023 and 2022, is eﬀ ectively one day. As of June 30,

2023 and 2022, the state had no credit risk exposure to bor-

rowers because the amounts owed to borrowers exceeded

the amounts borrowers owed to the state.

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, 2023 and 2022,

was $923,735 and $1,978,510, respectively. The fair value

of the university’s share of investments purchased with cash

collateral as of June 30, 2023 and 2022, was $572,670 and

$2,100,113, respectively.

3. ACCOUNTS RECEIVABLE

Accounts receivable, including amounts due from compo-

nent units, comprised the following (in thousands):

Level 1 Level 2 Level 3 Total

Pooled Investment

Program

310,748$ 227$ -$ 310,975$

Other Nonpooled

Investments

10,828 - - 10,828

Total Investments

321,576$ 227$ -$ 321,803$

Real Estate Held for Investment Measured at Cost

9,032

Investments Measured at NAV

647,790

Total Investments

978,625$

Level 1 Level 2 Level 3 Total

Pooled Investment

Program

255,745$ 222$ -$ 255,967$

Other Nonpooled

Investments

10,574 - - 10,574

Total Investments

266,319$ 222$ -$ 266,541$

Real Estate Held for Investment Measured at Cost

8,890

Investments Measured at NAV

641,000

Total Investments

916,431$

Assets at fair value as of June 30, 2023

Assets at fair value as of June 30, 2022

June 30,

2023

June 30,

2022

Investment Type

U.S. Treasury and Agency Securities 344$ 533$

Domestic Fixed Income Securities 562 1,775

Total 906$ 2,308$

June 30,

2023

June 30,

2022

Student Tuition and Fees 52,768$ 44,458$

Federal Grants and Contracts 61,599 63,543

State, Ot

h

er Government, an

d

Private

Gifts, Grants and Contracts

13,065 10,857

Auxi

l

iary Enterprises an

d

Ot

h

er

Operating Activities

5,645 6,593

State Capital Construction Grants 11,457 7,001

Component Units 36,675 15,718

Other 6,421 7,529

187,630 155,699

Less: Allowance for Doubtful Accounts (7,435) (6,858)

Accounts Receivable, Net

180,195$ 148,841$

38 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

4. NOTES RECEIVABLE

Student 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 Z 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.

The installment receivable is due from Link Oregon and re-

sults from the sale of dark ﬁ ber infrastructure and telecom-

munications equipment assets initially purchased by OSU

and sold to Link Oregon. Link Oregon is a non-proﬁ t con-

sortium of the State of Oregon and the state’s four research

universities - OSU, OHSU, PSU and UO - which will make

high-speed, ﬁ ber optic broadband connectivity available to

the state’s public and non-proﬁ t sectors.

The split-dollar loans represent related-party loans to former

head baseball coach Pat Casey and current head football

coach Jonathan Smith. See Note 1, Section AA for additional

information.

The state capital construction receivable represents

$40,000,000 XI-F(1) bonds sold by the state on behalf of

OSU in May 2023 for capital construction. The proceeds of

the bonds had not been received by the university as of June

30, 2023, and are therefore represented by the receivable

in OSU’s Statement of Net Position. The bond proceeds will

be received by the university in ﬁ scal year 2024 and repaid

to the State over 30 years. See Note 10 Long-Term Liabilities

for additional information on the bonds and repayment.

Notes receivable comprised the following (in thousands):

Current Noncurrent Total

Institutiona

l

an

d

Ot

h

er

Student Loans

111$ 301$ 412$

Perkins Loans 643 2,892 3,535

Installment Receivable 610 6,411 7,021

Split-Dollar Loans - 2,575 2,575

State Capital Construction 40,000 - 40,000

41,364 12,179 53,543

Less: Allowance for

Doubtful Accounts (48) (190) (238)

Notes Receivable, Net

41,316$ 11,989$ 53,305$

Current Noncurrent Total

I

nst

i

tut

i

ona

l

an

d

O

t

h

er

Student Loans

111$ 303$ 414$

Perkins Loans 1,980 8,909 10,889

Installment Receivable 610 7,318 7,928

Split-Dollar Loans - 2,075 2,075

2,701 18,605 21,306

Less: Allowance for

Doubtful Accounts (157) (678) (835)

Notes Receivable, Net

2,544$ 17,927$ 20,471$

June 30, 2023

June 30, 2022

2023 | Annual Financial Report | 39

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

5. CAPITAL ASSETS

The following schedule reﬂ ects the changes in capital assets (in thousands):

*As Restated, see Note 1, Section AD

Balance

June 30,

2021

Additions

Transfer

Completed

Assets

Retire.

And

Adjust.

Balance

June 30,

2022*

Additions

Transfer

Completed

Assets

Retire.

And

Adjust.

Balance

June 30,

2023

Capital Assets, Non-depreciable/

Non-amortizable:

Land

36,552$ 554$ -$ -$ 37,106$ -$ 257$ -$ 37,363$

Capitalized Collections

30,308 68 - (6) 30,370 188 - (80) 30,478

Construction in Progress

151,396 142,089 (135,136) (667) 157,682 286,226 (58,710) (40) 385,158

Total Capital Assets,

Non-depreciable/Non-amortizable 218,256 142,711 (135,136) (673) 225,158 286,414 (58,453) (120) 452,999

Capital Assets, Depreciable/

Amortizable:

Equipment

256,470 15,406 4,167 (7,686) 268,357 22,446 1,042 (8,712) 283,133

Library Materials

76,957 80 - (324) 76,713 99 - (517) 76,295

Buildings

1,736,634

48,253 118,045 (1,882) 1,901,050 4,356 45,590 (3,046) 1,947,950

Land Improvements

50,540 (59) 6,717 - 57,198 451 1,204 (1,831) 57,022

Improvements Other Than Buildings 15,108 260 13 - 15,381 366 1,379 - 17,126

Infrastructure

52,115 87 6,194 - 58,396 142 9,238 - 67,776

Intangible Assets

10,909 - - - 10,909 267 - - 11,176

ROU Leased Equipment

387 126 - (128) 385 13 - - 398

ROU Leased Buildings

14,695 169 - - 14,864 2,646 - (1,204) 16,306

ROU Leased Land

72 - - - 72 - - - 72

ROU SBITAs*

- 25,803 - -

25,803 11,071 - (132) 36,742

Total Capital Assets,

Depreciable/Amortizable 2,213,887 90,125 135,136 (10,020) 2,429,128 41,857 58,453 (15,442) 2,513,996

Less Accumulated Depreciation/

Amortization for:

Equipment

(198,646) (16,349) - 5,732 (209,263) (16,505) - 7,391 (218,377)

Library Materials

(75,278) (365) - 324 (75,319) (313) - 517 (75,115)

Buildings

(633,501) (47,394) - 2,244 (678,651) (51,099) - 21 (729,729)

Land Improvements

(23,291) (3,158) - - (26,449) (3,289) - 126 (29,612)

Improvements Other Than Buildings (11,961) (534) - - (12,495) (604) - 1 (13,098)

Infrastructure

(28,878) (2,472) - - (31,350) (2,705) - (51) (34,106)

Intangible Assets

(9,940) (147) - - (10,087) (161) -

- (10,248)

ROU Leased Equipment

(144) (110) - 128 (126) (107) - - (233)

ROU Leased Buildings

(2,272) (2,327) - - (4,599) (2,339) - 1,204 (5,734)

ROU Leased Land

(5) (9) - - (14) (10) - - (24)

ROU SBITAs*

- (6,964) - - (6,964) (9,020) - 132 (15,852)

Total Accumulated Depreciation/

Amortization

(983,916) (79,829) - 8,428 (1,055,317) (86,152) - 9,341 (1,132,128)

Total Capital Assets, Net

1,448,227$ 153,007$ -$ (2,265)$ 1,598,969$ 242,119$ -$ (6,221)$ 1,834,867$

Capital Assets Summary

Capital Assets, Non-depreciable/

Non-amortizable

218,256$ 142,711$ (135,136)$ (673)$ 225,158$ 286,414$ (58,453)$ (120)$ 452,999$

Capital Assets, Depreciable/

Amortizable

2,213,887 90,125 135,136 (10,020) 2,429,128 41,857

58,453 (15,442) 2,513,996

Total Cost of Capital Assets

2,432,143 232,836 - (10,693) 2,654,286 328,271 - (15,562) 2,966,995

Less Accumulated Depreciation/

Amortization

(983,916) (79,829) - 8,428 (1,055,317) (86,152) - 9,341 (1,132,128)

Total Capital Assets, Net*

1,448,227$ 153,007$ -$ (2,265)$ 1,598,969$ 242,119$ -$ (6,221)$ 1,834,867$

40 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

6. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES

Deferred 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,

2023

June 30,

2022

Deferred Outflows of Resources

Pension

Contributions Subsequent to the Measurement Date 49,487$ 46,756$

Change in Proportionate Share 44,761 39,395

Difference Between Contributions and Proportionate Share of Contributions 7 45

Difference Between Expected and Actual Experience 17,914 25,773

Change in Assumptions 57,905 68,924

OPEB

Contributions Subsequent to the Measurement Date 626 600

Change in Proportionate Share 865 963

Difference Between Contributions and Proportionate Share of Contributions 50 59

Change in Assumptions 339 529

Asset Retirement Obligations 18,408 16,875

Total Deferred Outflows of Resources

190,362$ 199,919$

Deferred Inflows of Resources

Pension

Change in Proportionate Share 812$ 4,513$

Difference Between Contributions and Proportionate Share of Contributions

51,912 15,198

Difference Between Expected and Actual Experience

2,301 -

Change in Assumptions

529 725

Net Difference Between Projected and Actual Earnings on Plan Investments*

65,978 203,826

OPEB

Difference Between Contributions and Proportionate Share of Contributions

48 47

Change in Proportionate Share

1,701 3,161

Difference Between Expected and Actual Experience

3,151 2,189

Change in Assumptions

4,582 3,279

Net Difference Between Projected and Actual Earnings on Plan Investments*

714 2,586

Leases

66,602 69,461

Total Deferred Inflows of Resources

198,330$ 304,

985$

7. ACCOUNTS PAYABLE AND ACCRUED

LIABILITIES

Accounts payable and accrued liabilities comprised the

following (in thousands):

8. LEASES

A. Lessee Arrangements

OSU leases oﬃ ce equipment, space and land from external

parties for various terms under long-term non-cancelable

lease agreements. The leases expire at various dates through

ﬁ scal year 2032 and provide for renewal options rang-

ing from one year to ﬁ ve years. In accordance with GASB

Statement No. 87, the university records right-to-use assets

and lease liabilities based on the present value of expected

payments over the lease term of the respective leases. The

expected payments are discounted using the interest rate

charged on the lease, if available, or are otherwise discount-

ed using the university’s incremental borrowing rate. Vari-

able payments are excluded from the valuations unless they

are ﬁ xed in substance. The university had no variable lease

expense during ﬁ scal years 2023 or 2022. The university

has multiple leases featuring payments tied to an index or

market rate. The university does not have any leases subject

to a residual value guarantee. OSU has one related-party les-

see arrangement with the OSU Foundation. The university

leases the University Plaza building from the foundation at

market rate with no special considerations included in the

lease terms. The lease is currently set to expire on December

31, 2027. See Note 5 Capital Assets for information on right-

to-use assets and associated accumulated amortization. See

Note 10 Long-Term Liabilities for future payments schedule.

June 30,

2022

June 30,

2022

Services and Supplies 115,260$ 79,299$

Payroll Related 28,702 26,015

Accrued Interest 11,095 10,655

Salaries and Wages 6,490 5,929

Contract Retainage 8,803 5,807

Total

170,350$ 127,705$

2023 | Annual Financial Report | 41

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

B. Lessor Arrangements

OSU leases oﬃ ce, food service, and educational space and

land to external parties. The university records lease receiv-

ables and deferred inﬂ ows of resources based on the present

value of expected receipts over the term of the respective

leases. The expected receipts are discounted using the inter-

est rate charged on the lease or by using the university’s

incremental borrowing rate. Variable payments are excluded

from the valuations unless they are ﬁ xed in substance. OSU

has one related-party lessor arrangement with the OSU

Foundation. The foundation leases approximately 4,385

square feet of oﬃ ce space in the OSU Portland Center build-

ing located in downtown Portland, OR. The lease terms are

at market rate with no special considerations included in the

lease terms. The lease is set to expire on July 31, 2028. Dur-

ing the years ended June 30, 2023 and 2022 the university

recognized lease revenues related to lessor agreements to-

taling $3,432,123 and $3,737,061, respectively. The univer-

sity also recognized interest revenues totaling $1,558,952

and $1,574,116, during the ﬁ scal years ended June 30, 2023

and 2022, respectively. Additionally, the university recog-

nized variable revenue related to leases totalling $329,815

and $600,655, during the ﬁ scal years ended June 30, 2023

and 2022, respectively.

9. SUBSCRIPTION BASED INFORMATION

TECHNOLOGY ARRANGEMENTS

OSU has entered into subscription-based contracts to use

vendor-provided information technology, commonly referred

to as subscription-based information technology arrange-

ments or SBITAs, for various terms under long-term, non-

cancelable agreements. These agreements expire at various

dates through 2028 and provide for renewal options rang-

ing from one year to three years. In accordance with GASB

Statement No. 96, the university records a right-to-use asset

and SBITA liability based on the present value of expected

payments over the term of the agreement. The expected

payments are discounted using the interest rate charged

in the agreement, if available, or are otherwise discounted

using the university’s incremental borrowing rate. Variable

payments are excluded from the valuations unless they are

ﬁ xed in substance. The university had no variable SBITA

expense during ﬁ scal years 2023 or 2022. The university has

no SBITAs featuring payments tied to an index or market

rate. See Note 5 Capital Assets for information on right-to-

use assets and associated accumulated amortization. See

Note 10 Long-Term Liabilities for future payments schedule.

42 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

10. LONG-TERM LIABILITIES

Long-term liability activity was as follows (in thousands):

Ba

l

ance

June 30,

2022* Additions Reductions

Ba

l

ance

June 30,

2023

Amounts

Due Within

One Year

Long-Term

Portion

Long-Term Debt

Due to the State of Oregon:

Contracts Payable 268,125$ 40,275$ (13,568)$ 294,832$ 16,992$

$

277,840

Oregon Department of Energy Loans (SELP) 9,041 - (796) 8,245 818

7,427

Revenue Bonds 622,789 - (367) 622,422 367

622,055

Leases 11,036 2,586 (2,259) 11,363 2,399

8,964

SBITAs 16,386 8,723 (9,204) 15,905 6,694

9,211

Direct Placement Debt

General Revenue Note 40,000 - - 40,000 40,000

-

Total Long-Term Debt

967,377 51,584 (26,194) 992,767 67,270 925,497

Other Noncurrent Liabilities

Notes Payable 117 - (117) - -

-

PERS pre-SLGRP Pooled Liability 18,340 - (3,966) 14,374 2,826

11,548

Compensated Absences 40,257 34,260 (31,423) 43,094 31,565

11,529

Supplemental Retirement Plan 488 47 - 535 -

535

Perkins Loan Program Liability 12,137 - (6,803) 5,334 970

4,364

Deferred Payroll Taxes Payable 9,840 - (9,840) - -

-

T

otal Other Noncurrent Liabilities

81,179 34,307 (52,149) 63,337 35,361 27,976

Total Long-Term Liabilities

1,048,556$ 85,891$ (78,343)$ 1,056,104$ 102,631$ 953,473$

Balance

June 30,

2021 Additions Reductions

Balance

June 30,

2022*

Amounts Due

Within One

Year

Long-Term

Portion

Long-Term Debt

Due to the State of Oregon:

Contracts Payable 277,637$ -$ (9,512)$ 268,125$ 13,568$

$

254,557

Oregon Department of Energy Loans (SELP) 9,802 - (761) 9,041 785

8,256

Revenue Bonds 623,155 - (366) 622,789 366

622,423

Leases 13,002 2,411 (4,377) 11,036 2,124

8,912

SBITAs* - 24,136 (7,750) 16,386 7,244

9,142

Installment Purchases 8 - (8) - -

-

Direct Placement Debt

General Revenue Note 40,000 - - 40,000 -

40,000

Total Long-Term Debt 963,604 26,547 (22,774) 967,377 24,087 943,290

Other Noncurrent Liabilities

Note Payable 234 - (117) 117 117

-

PERS pre-SLGRP Pooled Liability 20,463 - (2,123) 18,340 2,846

15,494

Compensated Absences 42,035 27,770 (29,548) 40,257 29,637

10,620

Supplemental Retirement Plan 547 1 (60) 488 -

488

Perkins Loan Program Liability 15,244 - (3,107) 12,137 2,207

9,930

Deferred Payroll Taxes Payable 19,686 - (9,846) 9,840 9,840

-

Total Other Noncurrent Liabilities 98,209 27,771 (44,801) 81,179 44,647 36,532

Total Long-Term Liabilities*

1,061,813$

54,318$ (67,575)$ 1,048,556$ 68,734$ 979,822$

*As Restated, see Note 1, Section AD

2023 | Annual Financial Report | 43

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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 Payable

OSU 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. In the event of default, the state may withhold future

disbursements of state general fund appropriations up to

the amount of default. Loans, with interest rates ranging

from 0.08 percent to 5.38 percent, are due serially through

2055.

During the ﬁ scal year ended June 30, 2023, the state issued

$40,275,000 os series 2023H XI-F(1) Taxable bonds on

behalf of OSU for capital construction. The bonds have an

eﬀ ective rate of 5.63 percent, and are due serially through

2055. Other changes to OSU’s contracts payable to the state

during ﬁ scal year ended June 30, 2023, included debt service

payments for principal of $13,567,565.

During the ﬁ scal year ended June 30, 2022, changes to

OSU’s contracts payable included debt service payments

for principal of $9,339,645 and the deduction of $172,483

for the amortization of accreted interest applicable to zero

coupon bonds sold prior to 2002.

B. Oregon Department of Energy Loans

OSU 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. Upon event of

default, the lender may accelerate the due date and declare

balance due immediately. The projects funded by the loan

serve as security for the debt. SELP loans, with interest rates

ranging from 4.01 percent to 4.35 percent, are due through

ﬁ scal year 2032.

C. Revenue Bonds

General Revenue Bonds, with bullet maturities, are due in

ﬁ scal years 2043 through 2060 and have eﬀ ective yields

ranging from 3.25 percent to 5.00 percent.

During the ﬁ scal year ended June 30, 2023, OSU did not

issue any new General Revenue Bonds. Changes to the

revenue bond liability during ﬁ scal year 2023 included the

amortization of $366,958 in bond premium.

During the ﬁ scal year ended June 30, 2022, OSU did not

issue any new General Revenue Bonds. Changes to the

revenue bond liability during ﬁ scal year 2022 included the

amortization of $366,406 in bond premium.

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 Leases SBITAs Principal Interest Principal Interest

Total

Payments

2024 26,189$ 1,163$ 23,063$ 2,594$ 6,983$ 26,903$ 33,089$ 40,000$ 704$ 100,696$

2025 26,980 1,163 23,063 2,356 4,511 25,054 33,019 - - 58,073

2026 27,136 1,163 23,063 2,326 3,159 24,426 32,421 - - 56,847

2027 25,950 1,163 23,063 2,358 1,572 22,278 31,828 - - 54,106

2028 25,394 1,164 23,063 2,104 232 20,699 31,258 - - 51,957

2029-2033 112,464 4,175 115,313 156 - 85,142 146,966 - - 232,108

2034-2038 79,739 - 115,313 - - 61,823 133,229 - - 195,052

2039-2043 47,452 - 136,388 - - 59,685 124,155 - - 183,840

2044-2048 16,611 - 242,998 - -

158,170 101,439 - - 259,609

2049-2053 13,009 - 243,724 - - 188,270 68,463 - - 256,733

2054-2058 2,600 - 219,656 - - 188,370 33,886 - - 222,256

2059-2063 - - 87,865 - - 83,550 4,315 - - 87,865

944,370$ 774,068$ 40,000$ 704$

Total Future Debt Service 403,524 9,991 1,276,572 11,894 16,457 40,704 1,759,142

Less: Interest Component of Future Payments (108,692) (1,746) (662,547) (531) (552) (704) (774,772)

Principal Portion of Future Payments 294,832 8,245 614,025 11,363 15,905 40,000 984,370

Adjusted by:

Net Unamortized Bond Premiums - - 8,397 - - - 8,397

Total Long-Term Debt

294,832$ 8,245$ 622,422$ 11,363$ 15,905$ 40,000$ 992,767$

Direct Placement

General Revenue NoteContracts, Bonds and Other Borrowings

44 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

D. Direct Placement Debt - General

Revenue Note

During the ﬁ scal year ended June 30, 2020, OSU entered

into a private placement debt agreement with JPMorgan

Chase Bank, N.A. for $40,000,000 to provide interim ﬁ nanc-

ing for university purposes. The debt has a bullet maturity

due in ﬁ scal year 2024 and a ﬁ xed interest rate. The loan

agreement contains a provision that in an event of default,

the Bank may assess an additional percentage to the annual

interest rate on all outstanding obligations. Repayment of

the loan will come from the general revenues of the univer-

sity.

E. Note Payable

OSU had a promissory note to pay Samaritan Health Ser-

vices, Inc. a total of $585,892 in ﬁ ve equal annual payments

of $117,178 with the payments due through ﬁ scal year 2023.

The note arose from billing and payment errors between

the university and Samaritan Health Services. There was no

interest charged on the note. As of June 30, 2023, the note

has been paid in full.

F. State and Local Government Rate Pool

Prior to the formation of the PERS State and Local Govern-

ment 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 sala-

ries and wages, to all public universities, state proprietary

funds and the government-wide reporting fund in the state’s

annual comprehensive ﬁ nancial report. OSU paid interest

expense on the liability in the amounts of $1,006,167 and

$2,191,755 for June 30, 2023 and 2022, respectively. Princi-

pal payments of $3,965,889 and $2,123,420 were applied to

OSU’s liability for June 30, 2023 and 2022, respectively.

G. Supplemental Retirement Plan

OSU participates in a supplemental retirement plan for

eligible employees who have been designated to become

a participant in the plan. The university has recorded an

investment for the non-vested 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.

See Note 17 Employee Retirement Plans, Section B Other

Retirement Plans for additional information.

H. Perkins Loan Program Liability

During 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 pro-

gram, 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 Sum-

mary of Signiﬁ cant Accounting Policies, Section Z Perkins

Loan Program Termination for additional information.

I. Deferred Payroll Taxes Payable

The Coronavirus Aid, Relief, and Economic Security (CARES)

Act, passed by Congress in March 2020, permited employers

to defer the deposit and payment of the employer’s portion

of social security taxes that otherwise would have been due

between March 27, 2020 and December 31, 2020. Employ-

ers were allowed to submit half of these deferred payments

by December 31, 2021 and the other half by December

31, 2022. OSU elected to defer these payments in order to

gain the interest earnings on the cash deposits. As of June

30, 2023 all deferred payments have been remitted to the

federal government.

11. ASSET RETIREMENT OBLIGATIONS

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: www.nrc.gov/

waste/decommissioning/reg-guides-comm/regulations.

html

For the years ended June 30, 2023 and 2022, OSU reported

an ARO liability of $23,180,000 and $21,040,000, respec-

tively, related to the OSTR. The remaining unamortized

deferred outﬂ ow equaled $18,408,579 and $16,875,455,

respectively, for 2023 and 2022. Both the liability and

deferred outﬂ ow increased in ﬁ scal year 2023 due to an

updated annual estimate of the cost to decommission the

asset. The method and assumptions used to measure the ob-

ligation were those set forth by the NRC in the series publi-

cation 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, 2023 and 2022, the OSTR had an

estimated remaining useful life of 30.3 years and 31.3 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

2023 | Annual Financial Report | 45

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

of funds, or otherwise provide funds suﬃ ciently in ad-

vance of decommissioning to prevent the delay of required

activities. As of June 30, 2023, 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.

12. UNRESTRICTED NET POSITION

Unrestricted net position is comprised of the following (in

thousands):

13. PLEDGED GENERAL REVENUES

The university implemented a General Revenue Bond Pro-

gram 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 department

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 exclud-

ed 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):

14. INVESTMENT ACTIVITY

Investment Activity detail is as follows (in thousands):

June 30, 2023

June 30,

2022

University Operations 185,597$ 239,624$

Net Pension Liability, Net of

Deferrals (See Notes 6 & 17)

(320,500) (318,701)

Compensated Absences Liability

(36,205) (33,672)

State and Local Government Rate

Pool Liability (See Note 10)

(14,374) (18,340)

Other Post-Employment Benefits

Liabilities, Net of Deferrals

(See Notes 6 & 18)

(8,806) (11,234)

Asset Retirement Obligation, Net o

f

Deferrals (See Notes 6 & 11)

(4,771) (4,165)

Total Unrestricted Net Position

(199,059)$ (146,488)$

June 30,

2023

June 30,

2022

Total Operating Revenues

1,014,559$ 900,680$

(Less):

Student Building Fees (3,078) (2,910)

Student Incidental Fees (32,161) (29,444)

Federal Grants and Contracts (313,851) (248,666)

State and Local Grants and Contracts (22,628) (12,640)

Nongovernmental Grants and Contracts (26,373) (27,258)

Amounts Required to be Deposited or

Paid for Universit

y

-Paid State Bonds

(26,298) (21,987)

Plus:

Adjusted Beginning Unrestricted Net

Position, Restated

(151,222) (232,539)

General Revenues Pledged to Repay

Revenue Bonds

438,948$ 325,236$

June 30,

2023

June 30,

2022

Royalties and Technology Transfer

Income

8,678$ 6,873$

Investment Earnings 8,509 3,442

Endowment Income 1,981 1,869

Net Appreciation (Depreciation) of

Investments

14,340 (17,580)

Gain (Loss) on Sale of Investments (4,443) (1,463)

Interest Income 924 677

Total Investment Activity

29,989$ (6,182)$

46 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

16. GOVERNMENT APPROPRIATIONS

OSU 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 exten-

sion 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.

Government appropriations comprised the following (in

thousands):

17. EMPLOYEE RETIREMENT PLANS

Oregon State University oﬀ ers various deﬁ ned beneﬁ t and

deﬁ ned contribution retirement plans to qualiﬁ ed employees

as described in the following pages.

June 30,

2022

June 30,

2022

General Fund - Education & General 165,381$ 157,293$

General Fund - Statewide Public Services 79,204 77,817

General Fund - SELP Debt Service 1,054 1,054

Lottery Funding - Outdoor School 24,709 24,709

Lottery Funding - Sports Lottery 603 603

Harvest Tax 4,489 3,392

Total State Appropriations 275,440$ 264,868$

County Appropriations 14,482 13,957

Total Appropriations

289,922$ 278,825$

15. OPERATING EXPENSES BY NATURAL CLASSIFICATION

The 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 changed the reported compensation and beneﬁ t expenses of OSU by $48,857,374

and ($7,818,442) for the ﬁ scal years ended June 30, 2023 and 2022, respectively. The following displays operating expenses

by both the functional and natural classiﬁ cations (in thousands):

June 30, 2023

Compensation

and Benefits

Services and

Supplies

Scholarships and

Fellowships

Depreciation and

Amortization Other Total

Instruction 312,675$ 30,941$ 207$ 5$ 254$ 344,082$

Research 168,498 82,691 3,804 45 24 255,062

Public Services 99,989 91,819 1,532 199 1,068 194,607

Academic Support 62,176 24,875 41 215 - 87,307

Student Services 35,626 6,615 8 210 46 42,505

Auxiliary Services 92,592 85,604 6,175 18,947 - 203,318

Institutional Support 91,238 24,730 14 9,641 - 125,623

Operation & Maint. of Plant 19,876 22,933 - 241 - 43,050

Student Aid 50 (318) 33,379 - 5,676 38,787

Other 362 11,154 - 56,649 - 68,165

Total

883,082$ 381,044$ 45,160$ 86,152$ 7,068$ 1,402,506$

June 30, 2022

Compensation

and Benefits

S

ervices and

Supplies

Scholarships and

Fellowships

Depreciation and

Amortization Other Total

Instruction 296,117$ 25,923$ 81$ 101$ 203$ 322,425$

Research 153,992 65,064 3,158 44 20 222,278

Public Services 91,200 70,562 1,974 127 1,050 164,913

Academic Support 64,933 22,500 14 141 - 87,588

Student Services 30,727 5,394 9 212 40 36,382

Auxiliary Services 83,154 76,649 5,020 18,649 - 183,472

Institutional Support 86,200 29,323 (1) 7,869 2 123,393

Operation & Maint. of Plant 17,977 22,613 - 227 - 40,817

Student Aid 29 33 49,926 - 331 50,319

Other 255 13,897 - 52,459 - 66,611

Total

824,584$ 331,958$ 60,181$ 79,829$ 1,646$ 1,298,198$

2023 | Annual Financial Report | 47

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

A. Public Employees Retirement Plan

(PERS)

ORGANIZATION

The 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 MEMBERSHIP

PERS 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 REPORT

The 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

Annual Comprehensive 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 POLICIES

Employers 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 METHODOLOGY

The basis for the employer’s proportion of the statewide

plan is actuarially determined by comparing the employer’s

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 LIABILITY

The components of the Plan’s collective net pension liability

as of the measurement dates of June 30, 2022 and 2021 are

as follows (in millions):

CHANGES SUBSEQUENT TO THE MEASUREMENT DATE

The university is not aware of any changes to beneﬁ t terms

or actuarial methods and assumptions subsequent to the

June 30, 2022 measurement date.

OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM

(PERS) PENSION (CHAPTER 238) PROGRAM

PENSION BENEFITS

The 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 actu-

arial equivalence of beneﬁ ts to which they are is entitled.

Collective Plan:

June 30,

2022

June 30,

2021

Total Pension Liability 99,082$ 96,298$

Plan Fiduciary Net Position 83,770 84,331

Plan Net Pension Liability

15,312$ 11,967$

48 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

A member is considered vested and will be eligible at mini-

mum retirement age for a service retirement allowance if

they have had a contribution in each of ﬁ ve calendar years or

has reached at least 50 years of age before ceasing employ-

ment with a participating employer. General Service em-

ployees 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 BENEFITS

Upon the death of a non-retired member, the beneﬁ ciary re-

ceives 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 the

time of death.

• The member died within 120 days after termination of

PERS-covered employment.

• The member died as a result of injury sustained while

employed in a PERS-covered job.

• The member was on an oﬃ cial leave of absence from a

PERS-covered job at the time of death.

DISABILITY BENEFITS

A 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 result-

ing from a job-incurred injury or illness qualiﬁ es a member

for disability beneﬁ ts regardless of the length of PERS-cov-

ered service. Upon qualifying for either a non-duty or duty

disability, service time is computed to age 58 when deter-

mining the monthly beneﬁ t.

BENEFIT CHANGES AFTER RETIREMENT

Members may choose to continue participation in a vari-

able 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 (OP-

SRP DB) PENSION PROGRAM

PENSION BENEFITS

The 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 BENEFITS

Upon 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 per-

cent of the pension that would otherwise have been paid to

the deceased member.

DISABILITY BENEFITS

A 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 RETIREMENT

Under 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 PROGRAM

BENEFIT TERMS

The IAP is an individual account-based program under the

PERS tax-qualiﬁ ed governmental plan as deﬁ ned under

ORS 238A.400. An IAP member becomes vested on the

date the employee account is established or on the date

the rollover account was established. If the employer makes

optional employer contributions for a member, the member

becomes vested on the earliest of the following dates: the

date the member completes 600 hours of service in each

of ﬁ ve calendar years, the date the member reaches normal

retirement age, the date the IAP is terminated, the date the

active member becomes disabled, or the date the active

member dies. The accounts fall under Internal Revenue Code

Section 401(a).

Upon retirement, a member of the IAP may receive the

amounts in his or her employee account, 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. Installment amounts

vary with market returns as the account remains invested

while in distribution. When chosen, the distribution option

must result in a $200 minimum distribution amount, or the

frequency of the installments will be adjusted to reach that

minimum.

2023 | Annual Financial Report | 49

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

DEATH BENEFITS

Upon the death of a non-retired member, the beneﬁ ciary

receives in a lump sum the member’s account balance,

rollover account balance, and vested employer optional

contribution account 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 payment.

CONTRIBUTIONS

PERS 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.

Eﬀ ective January 1, 2020, Senate Bill 1049 requires em-

ployers to pay contributions on re-employed PERS retirees’

salaries as if they were active members, excluding IAP (6

percent) contributions.

During the ﬁ scal year ended June 30, 2021, the university

funded a PERS side account totaling $10,000,000 which

represents approximately 2.2 percent of the university’s un-

funded actuarial liability as of June 30, 2021. PERS contrib-

uted a $2,225,203 matching contribution to the university’s

side account. This side account does not impact employee

beneﬁ ts received under PERS; instead, it represents a pre-

payment of OSU’s on-going contributions. The university

will see the beneﬁ t of a lower employer contribution rate

over the next 10 years as the account is amortized. Eﬀ ective

December 1, 2020, the university’s employer contribution

rate was reduced by 0.57 percent due to the side account.

Employer contribution rates for the ﬁ scal years ended June

30, 2023 and 2022 were based on the December 31, 2019

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, 2023 and 2022,

were $55,085,128 and $51,670,719, respectively, including

amounts to fund employer speciﬁ c liabilities.

FEDERAL CIVIL SERVICE RETIREMENT

Some OSU Extension Service employees hold federal ap-

pointments. Employees on federal appointment hired after

December 31, 1983 participate in the Federal Employees

Retirement System (FERS), a deﬁ ned beneﬁ t plan. FERS

employees contribute 0.8 percent with an employer contri-

bution rate of 13.7 percent. FERS employees are not eligible

for membership in PERS and they contribute at the full FICA

rate.

The university’s required employer contributions for FERS

for the years ended June 30, 2023 and 2022, were $207,762

and $233,924, respectively.

NET PENSION LIABILITY

At June 30, 2023, the university reported a liability of

$369,041,571 for its proportionate share of the PERS net

pension liability. The net pension liability as of June 30,

2023 was measured as of June 30, 2022, and the total pen-

sion liability used to calculate the net pension liability was

determined by an actuarial valuation as of December 31,

2020, rolled forward to the measurement date. At June 30,

2022, the university reported a liability of $275,331,939 for

its proportionate share of the PERS net pension liability. The

net pension liability as of June 30, 2022 was measured as of

June 30, 2021, and the total pension liability used to calcu-

late the net pension liability was determined by an actuarial

valuation as of December 31, 2019, rolled forward to the

measurement date.

OSU receives an agency-speciﬁ c proportionate share alloca-

tion directly from PERS as a result of the university’s contri-

butions to its independent side account. At June 30, 2023

and 2022, OSU’s proportion was 2.41 and 2.30, respectively,

of the statewide pension plan.

For the years ended June 30, 2023 and 2022, OSU recorded

total pension expense of $51,285,841 and $41,818,944,

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 ITEMS

Most 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

diﬀ erence between employer contributions, proportionate

share of contributions and contributions subsequent to the

measurement date are calculated at the employer level. For

ﬁ scal years ending June 30, 2023 and 2022, deferred items

include:

• Diﬀ erence between expected and actual experience

• Changes in assumptions

• Net diﬀ erence between projected and actual pension plan

investment earnings

• Changes in employer proportion since the prior

measurement date

2023 2022

Base Tier One/Two Rate 21.03% 21.03%

SLGRP Rate 1.52% 1.52%

RHIA and RHIPA OPEB Rate 0.33% 0.33%

Side Account Offset Rate -0.57% -0.57%

Total PERS Tier One/Two Rate 22.31% 22.31%

Base OPSRP Rate 17.12% 17.12%

SLGRP Rate 1.52% 1.52%

RHIA and RHIPA OPEB Rate 0.17% 0.17%

Side Account Offset Rate -0.57% -0.57%

Total OPSRP Rate 18.24% 18.24%

50 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

• A diﬀ erence between employer contributions and

proportionate 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, 2022 – 5.5 years

• Measurement period ended June 30, 2021 – 5.4 years

• Measurement period ended June 30, 2020 – 5.3 years

• Measurement period ended June 30, 2019 – 5.2 years

• Measurement period ended June 30, 2018 – 5.2 years

The diﬀ erence between projected and actual pension plan

investment 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 pension expense for ﬁ scal years 2023 and 2022.

At June 30, 2023, 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,

$49,486,591 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, 2024.

As of June 30, 2023, 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):

At June 30, 2022, 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,

$46,755,930 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, 2023.

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

17,914$ (2,301)$

Change in Assumptions

57,905 (529)

Net Difference Between Projected and

Actual Earnings on Pension Plan

Investments

- (65,978)

Change in Proportionate Share

44,761 (812)

Differences Between Contributions

and Proportionate Share of

Contributions

7 (51,912)

Total 120,587$ (121,532)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(945)

Contributions Subsequent to the MD 49,487

Net Deferred Outflow/(Inflow) of

Resources after Contributions

Subsequent to the MD

48,542$

Year Ended June 30:

2024

3,146$

2025

(4,446)

2026

(26,072)

2027

28,525

2028

(2,098)

(945)$

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

25,773$ -$

Change in Assumptions

68,924 (725)

Net Difference Between Projected and

Actual Earnings on Pension Plan

Investments

- (203,826)

Change in Proportionate Share

39,395 (4,513)

Differences Between Contributions

and Proportionate Share of

Contributions

45 (15,198)

Total 134,137$ (224,262)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(90,125)

Contributions Subsequent to the MD 46,756

Net De

f

erre

d

Out

fl

ow/

(

In

fl

ow

)

o

f

Resources after Contributions

Subsequent to the MD

(43,369)$

2023 | Annual Financial Report | 51

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

ACTUARIAL METHODS AND ASSUMPTIONS

The 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.

DISCOUNT RATE

The discount rate used to measure the total pension liability

at June 30, 2023 and 2022 was 6.90 percent. The projection

of cash ﬂ ows used to determine the discount rate assumed

that contributions from plan members and those of the con-

tributing employers are made at the contractually required

rates, as actuarially determined. Based on those assump-

tions, the pension plan’s 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 pension plan investments was applied to

all periods of projected beneﬁ t payments to determine the

total pension liability.

SENSITIVITY ANALYSIS

The 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 6.90 percent as of June

30, 2023 and 2022, as well as what the university’s propor-

tionate 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 PROJECTION

GASB 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 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.

As of: June 30, 2023 June 30, 2022

Valuation Date

December 31, 2020 December 31, 2019

Measurement Date June 30, 2022 June 30, 2021

Experience Study Report

2020, published July

2021

2018, published July

2019

Actuarial Cost Method

Inflation Rate

Long-Term Expected Rate

of Return

Discount Rate

Projected Salary Increases

Cost of Living Adjustments

(COLA)

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:

Pub-2010 Healthy Retiree, sex distinct,

generational with Unisex, Social Security

Data Scale, with job category

adjustments and set-backs as described

in the valuation.

Pub-2010 Employee, sex distinct,

generational with Unisex, Social Security

Data Scale, with job category

adjustments and set-backs as described

in the valuation.

Pub-2010 Disabled Retiree, sex distinct,

generational with Unisex, Social Security

Data Scale, with job category

adjustments and set-backs as described

in the valuation.

2.40 percent

6.90 percent

3.40 percent

June 30, 2023 June 30, 2022

1% Decrease

5.90%

654,463$ 540,968$

Current Discount Rate

6.90%

369,042 275,332

1% Increase

7.90%

130,157 53,327

52 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

• GASB Statement No. 68 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. 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 RETURN

To develop an analytical basis for the selection of the long-

term expected rate of return assumption, in June 2021 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’

audited annual comprehensive ﬁ nancial reports at:

www.oregon.gov/pers/Pages/Financials/Actuarial-

Finan

cial-Information.aspx

LONG-TERM EXPECTED RATE OF RETURN BY ASSET

CLASS

BOND DEBT

The 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 years

2023 and 2022 was 5.60 percent. Payroll assessments paid

by OSU for the ﬁ scal years ended June 30, 2023 and 2022,

were $16,865,039 and $15,744,390, respectively.

B. Other Retirement Plans

OPTIONAL RETIREMENT PLAN

The 1995 Oregon Legislature enacted legislation that autho-

rized the public universities in the state to oﬀ er a deﬁ ned

contribution retirement plan as an alternative to PERS. A

Retirement Plan Committee was appointed to administer

the Optional Retirement Plan (ORP) and named trustees to

manage plan assets placed with mutual funds and insurance

companies.

Beginning April 1, 1996, the ORP was made available to

university academic and administrative faculty. Employees

choosing the ORP may invest the employee and employer

contributions in one of two investment companies, either

Fidelity or the Teacher’s Insurance Annuity Association

(TIAA).

Asset Class/ Strategy

Debt Securities 15.00 % 25.00 % 20.00 %

Public Equity 25.00 35.00 30.00

Private Equity 15.00 27.50 20.00

Real Estate 7.50 17.50 12.50

Real Assets 2.50 10.00 7.50

Diversitying Strategies 2.50 10.00 7.50

Opportunity Portfolio 0.00 5.00 0.00

Risk Parity 0.00 3.50 2.50

Total 100 %

Low Range High Range OIC Target

Asset Class Target

Compound

Annual Return

(Geometric)

Global Equity 30.62% 5.85%

Private Equity 25.50 7.71

Core Fixed Income 23.75 2.73

Real Estate 12.25 5.66

Master Limmited

Partnerships

0.75 5.71

Infrastructure 1.50 6.26

Commodities 0.63 3.10

Hedge Funds of Funds -

Multistrategy

1.25 5.11

Hedge Fund Equity - Hedge 0.63 5.31

Hedge Fund - Macro 5.62 5.06

US Cash -2.50 1.76

Assumed Inflation – Mean

2.40%

2023 | Annual Financial Report | 53

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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 employ-

er 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 contribu-

tion rates for the ORP are as follows:

OREGON PUBLIC UNIVERSITIES 401(A) DEFINED

CONTRIBUTION PLAN

Eligible 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 PLAN

OSU 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

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)

OSU participates in a supplemental retirement plan for

eligible employees who have been designated to become

a participant in the plan. The supplemental plan has two

parts: 403(b) deﬁ ned contribution plan and a 415(m) excess

beneﬁ t arrangement. Investments of the 403(b) plan and

the 415(m) arrangement are managed by TIAA and directed

by the employee. The university has recorded an investment

for the non-vested 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.

During the ﬁ scal years ended June 30, 2023 and 2022, the

university did not make any contributions to the 415(m) ar-

rangement or to the employees’ 403(b) plan.

SUMMARY OF OTHER PENSION PAYMENTS

OSU’s total payroll for the year ended June 30, 2023 was

$599,069,824, of which $239,596,112 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 $10,783,513 of the ORP

and $29,961 of the TIAA employee contributions on behalf

of their employees during the ﬁ scal year ended June 30,

2023. The FERS-TSP contributions of $127,227 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 2023.

OSU’s total payroll for the year ended June 30, 2022 was

$551,997,741, of which $223,759,759 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 $10,194,614 of the ORP

and $44,931 of the TIAA employee contributions on behalf

of their employees during the ﬁ scal year ended June 30,

2022. The FERS-TSP contributions of $152,453 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 2022.

2023 2022

Tier One/Two 26.30% 26.30%

Tier Three 9.63% 9.63%

Tier Four

8.00% 8.00%

Employer

Contribution

As a % of

Covered

Payroll

Employee

Contribution

As a % of

Covered

Payroll

ORP 16,304$ 6.80% 13,257$ 5.53%

TIAA 30 0.01 30 0.01

FERS - TSP 54 0.02 127 0.05

Total

16,388$ 6.83% 13,414$ 5.59%

June 30, 2023

Employer

Contribution

As a % of

Covered

Payroll

Employee

Contribution

As a % of

Covered

Payroll

ORP 16,139$ 7.21% 12,373$ 5.53%

TIAA 45 0.02 45 0.02

FERS - TSP 63 0.03 152 0.07

Total

16,247$ 7.26% 12,570$ 5.62%

June 30, 2022

54 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

18. OTHER POST-EMPLOYMENT BENEFITS

(OPEB)

A. Public Employees Retirement Plans

(PERS)

PLAN DESCRIPTION

The 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 premi-

ums, PERS also administers two separate deﬁ ned beneﬁ t

other post-employment beneﬁ t (OPEB) plans: the Retire-

ment 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 con-

cerning 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

they (1) are receiving a retirement beneﬁ t or allowance from

PERS or (2) were 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.

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 pre-

miums 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 they (1) are receiving a re-

tirement beneﬁ t or allowance from PERS or (2) were 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 REPORT

The 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 annual comprehensive 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 POLICIES

Employers 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 ACCOUNTING

The 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

METHODOLOGY

The 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.

2023 | Annual Financial Report | 55

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

OPEB TOTAL PLAN (ASSET) LIABILITY

The components of the collective Net OPEB liability (asset)

for the OPEB plans as of the measurement dates of June 30,

2021 and June 30, 2020 are as follows (in millions):

CHANGES SUBSEQUENT TO THE MEASUREMENT

DATE

The university is not aware of any changes to beneﬁ t terms

or actuarial methods and assumptions subsequent to the

June 30, 2022 measurement date.

CONTRIBUTIONS

Both of the OPEB plans administered by PERS are funded

through actuarially determined employer contributions.

For the ﬁ scal years ended June 30, 2023 and 2022, the

university contributed 0.05 percent of PERS-covered payroll

for Tier One and Tier Two plan members to fund the normal

cost portion of RHIA beneﬁ ts. The university’s required

employer contributions for the years ended June 30, 2023

and 2022 were approximately $32,862 and $34,780, respec-

tively. The actual contribution equaled the annual required

contribution for the year.

For the ﬁ scal years ended June 30, 2023 and 2022, the

university contributed 0.11 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 0.17 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, 2023 and 2022 were approximately

$593,618 and $564,834, respectively. The actual contribu-

tion equaled the annual required contribution for the year.

NET OPEB ASSET/LIABILITY

a. RHIA

At June 30, 2023, the university reported an asset of

$7,388,433 for its proportionate share of the RHIA net

OPEB asset. The net OPEB asset as of June 30, 2023 was

measured as of June 30, 2022, and the total OPEB asset

used to calculate the net OPEB asset was determined by an

actuarial valuation as of December 31, 2020. At June 30,

2022, the university reported an asset of $8,464,774 for its

proportionate share of the RHIA net OPEB asset. The net

OPEB asset as of June 30, 2022 was measured as of June

30, 2021, and the total OPEB asset used to calculate the net

OPEB asset was determined by an actuarial valuation as of

December 31, 2019. The PERS system does not provide OSU

an audited proportionate share as a separate employer; the

university is allocated a proportionate share of PERS em-

ployer state agencies. The state Department of Administra-

tive 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 calcula-

tion. At June 30, 2023 and June 30, 2022, OSU’s proportion

was 2.08 and 2.46 percent of the statewide OPEB plan,

respectively.

For the years ended June 30, 2023 and 2022, OSU re-

corded total OPEB related expense of ($1,137,429) and

($1,747,961), respectively, due to changes in the net RHIA

OPEB asset, deferred outﬂ ows and deferred inﬂ ows, and

amortization of previously deferred amounts.

b. RHIPA

For the year ended June 30, 2023, the university reported a

asset of $2,321,822 for its proportionate share of the RHIPA

net OPEB asset. The net OPEB asset as of June 30, 2023 was

measured as of June 30, 2022, and the total OPEB liability

used to calculate the net OPEB liability was determined by

an actuarial valuation as of December 31, 2020. For the

year ended June 30, 2022, the university reported a asset

of $1,129,001 for its proportionate share of the RHIPA net

OPEB asset. The net OPEB asset as of June 30, 2022 was

measured as of June 30, 2021, and the total OPEB liability

used to calculate the net OPEB liability was determined by

an actuarial valuation as of December 31, 2019. 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 com-

pared to the total for employer state agencies. The Oregon

Audits Division reviewed this internal calculation. At June

30, 2023 and June 30, 2022, OSU’s proportion was 6.78 and

7.29 percent, respectively, of the statewide OPEB plan.

For the years ended June 30, 2023 and 2022, OSU recorded

total OPEB related expense of ($401,773) and ($224,170),

respectively, due to changes in the net RHIPA OPEB asset,

deferred outﬂ ows and deferred inﬂ ows, and amortization of

previously deferred amounts.

Net OPEB - RHIA (Asset)

June 30,

2022

June 30,

2021

Total OPEB - RHIA Liability 375.4$ 409.5$

Plan Fiduciary Net Position 730.7 752.9

Plan Net OPEB - RHIA (Asset) (355.3)$ (343.4)$

Net OPEB - RHIPA (Asset)

Total OPEB - RHIPA Liability 49.1$ 62.9$

Plan Fiduciary Net Position 83.3 78.4

Plan Net OPEB - RHIPA (Asset) (34.2)$ (15.5)$

56 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

DEFERRED ITEMS

a. RHIA

Most deferred items are calculated at the system-wide level

a

nd 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, 2023 and 2022, deferred

items include:

• Diﬀ erence between expected and actual experience

• Diﬀ erence due to changes in assumptions

• Net diﬀ erence between projected and actual OPEB plan

investment earnings

• Changes in employer proportion since the prior

measurement date

• A diﬀ erence between employer contributions and

proportionate share of contributions

• Contributions subsequent to the measurement date

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, 2022 - 2.5 years

• Measurement period ended June 30, 2021 - 2.7 years

• Measurement period ended June 30, 2020 - 2.9 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 2023 and 2022.

At June 30, 2023, 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,

$32,862 are related to contributions subsequent to the mea-

surement date and will be recognized as an increase of the

net OPEB asset in the year ended June 30, 2024.

As of June 30, 2023, 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):

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (200)$

Change in Assumptions

58 (246)

Net Difference Between Projected and

Actual Earnings on OPEB Plan

Investments

- (563)

Change in Proportionate Share

587 (905)

Difference Between Contributions

and Proportionate Share of

Contributions

- (17)

Total 645$ (1,931)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(1,286)

Contributions Subsequent to the MD 33

Net Deferred Outflow/(Inflow) of

Resources after Contributions

Subsequent to the MD

(1,253)$

Year Ended June 30:

2024

(962)$

2025

(150)

2026

(355)

2027

181

(1,286)$

2023 | Annual Financial Report | 57

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

At June 30, 2022, 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,

$34,780 are related to contributions subsequent to the mea-

surement date and are recognized as an increase of the net

OPEB asset in the year ended June 30, 2023.

b. RHIPA

Most 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, 2023 and 2022, deferred

items include:

• Diﬀ erence between expected and actual experience

• Diﬀ erence due to changes in assumptions

• Net diﬀ erence between projected and actual OPEB plan

investment earnings

• Changes in employer proportion since the prior

measurement date

• Diﬀ erence between employer contributions and

proportionate share of contributions

• Contributions subsequent to the measurement date

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:

• Measurement period ended June 30, 2022 - 6.1 years

• Measurement period ended June 30, 2021 - 6.2 years

• Measurement period ended June 30, 2020 - 6.4 years

• Measurement period ended June 30, 2019 - 6.7 years

• Measurement period ended June 30, 2018 - 6.9 years

• Measurement period ended June 30, 2017 - 7.2 years

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.

One year of amortization is recognized in the university’s

total OPEB expense for ﬁ scal years 2023 and 2022.

At June 30, 2023, 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,

$593,618 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, 2024.

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (235)$

Change in Assumptions

166 (126)

Net Difference Between Projected and

Actual Earnings on OPEB Plan

Investments

- (2,012)

Change in Proportionate Share

893 (2,203)

Difference Between Contributions

and Proportionate Share of

Contributions

1 (20)

Total 1,060$ (4,596)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(3,536)

Contributions Subsequent to the MD 35

Net Deferred Outflow/(Inflow) of

Resources after Contributions

Subsequent to the MD

(3,501)$

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (613)$

Change in Assumptions

60 (932)

Net Difference Between Projected and

Actual Earnings on OPEB Plan

Investments

- (151)

Change in Proportionate Share

6 (120)

Difference Between Contributions

and Proportionate Share of

Contributions

13 (18)

Total 79$ (1,834)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(1,755)

Contributions Subsequent to the MD 593

Net Deferred Outflow/(Inflow) of

Resources after Contributions

Subsequent to the MD

(1,162)$

58 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

As of June 30, 2023, 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):

At June 30, 2022, 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,

$564,834 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, 2023.

ACTUARIAL METHODS AND ASSUMPTIONS

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 deter-

mined amounts are subject to continual revision as actual

results are compared to past expectations and new esti-

mates 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:

Year Ended June 30:

2024

(441)$

2025

(441)

2026

(456)

2027

(211)

2028

(188)

Thereafter

(18)

(1,755)$

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (499)$

Change in Assumptions

82 (398)

Net Difference Between Projected and

Actual Earnings on OPEB Plan

Investments

- (574)

Change in Proportionate Share

8 (137)

Difference Between Contributions

and Proportionate Share of

Contributions

13 (24)

Total 103$ (1,632)$

Net Deferred Outflow/(Inflow) of

Resources before Contributions

Subsequent to the Measurement

Date (MD)

(1,529)

Contributions Subsequent to the MD 565

Net Deferred Outflow/(Inflow) of

Resources after Contributions

Subsequent to the MD

(964)$

June 30, 2023 June 30, 2022

Valuation Date December 31, 2020 December 31, 2019

Measurement Date June 30, 2022 June 30, 2021

Experience Study

Report

2020, published July 2021 2018, published July 2019

Actuarial Cost Method

Inflation Rate

Long-Term Expected

Rate of Return

Discount Rate

Projected Salary

Increases

Retiree Healthcare

Participation

Healthy retirees: 27.5%;

Disabled retirees: 15%

Healthy retirees: 32%;

Disabled retirees: 20%

Healthcare Cost Trend

Rate

6.90 percent

3.40 percent

Pub-2010 Employee, sex distinct, generational with

Unisex, Social Security Data Scale, with job category

adjustments and set-backs as described in the

valuation

Pub-2010 Disabled Retiree, sex distinct, generational

with Unisex, Social Security Data Scale, with job

category adjustments and set-backs as described in

the valuation

Disabled retirees:

Actuarial Methods and Assumptions:

RHIA

Entry Age Normal

Actuarial Assumptions:

Mortality

Not applicable

Healthy retirees and beneficiaries:

Active members:

Pub-2010 Healthy Retiree, sex distinct, generational

with Unisex, Social Security Data Scale, with job

category adjustments and set-backs as described in

the valuation

2.40 percent

6.90 percent

2023 | Annual Financial Report | 59

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

The following key methods and assumptions were used to

measure the total RHIPA OPEB liability:

DISCOUNT RATE

The discount rate used to measure the total OPEB liability/

(asset) at June 30, 2023 and 2022 was 6.90 percent. The

projection of cash ﬂ ows used to determine the discount rate

assumed that contributions from contributing employers

are made at the contractually required rates, as actuarially

determined. Based on those assumptions, the OPEB plans’

ﬁ duciary net position was projected to be available to make

all projected future beneﬁ t payments of current plan mem-

bers. 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 ANALYSIS

The sensitivity analysis below shows the sensitivity of the

university’s proportionate share of the net OPEB liability/

(asset) calculated using the discount rate of 6.90 and 7.20

percent as of June 30, 2023 and 2022, respectively, 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 RETURN

To develop an analytical basis for the selection of the long-

term expected rate of return assumption, in June 2021 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

June 30, 2023 June 30, 2022

Valuation Date December 31, 2020 December 31, 2019

Measurement

Date

June 30, 2022 June 30, 2021

Experience Study

Report

2020, published July 2021 2018, published July 2019

Actuarial Cost

Method

Inflation Rate

Long-Term

Expected Rate of

Return

Discount Rate

Projected Salary

Increases

Retiree

Healthcare

Participation

8-14 Years of Service: 10%

15-19 Years of Service: 11%

20-24 Years of Service: 14%

25-29 Years of Service: 22%

30+ Years of Service: 27%

8-14 Years of Service: 10%

15-19 Years of Service: 15%

20-24 Years of Service: 19%

25-29 Years of Service: 26%

30+ Years of Service: 34%

Healthcare Cost

Trend Rate

Applied at beginning of plan

year, starting with 5.9% for

2021, decreasing to 4.7%

for 2028, increasing to 4.8%

for 2037, and decreasing to

an ultimate rate of 3.9% for

2074 and beyond.

Applied at beginning of plan

year, starting with 7.1% for

2019, decreasing to 4.9% for

2025, increasing to 5.0% for

2036, and decreasing to an

ultimate rate of 4.0% for

2074 and beyond.

2.40 percent

6.90 percent

3.40 percent

Actuarial Methods and Assumptions:

RHIPA

Actuarial Assumptions:

Entry Age Normal

Mortality

Healthy retirees and beneficiaries:

Active members:

Disabled retirees:

Pub-2010 Healthy Retiree, sex distinct, generational

with Unisex, Social Security Data Scale, with job

category adjustments and set-backs as described in the

valuation

Pub-2010 Employee, sex distinct, generational with

Unisex, Social Security Data Scale, with job category

adjustments and set-backs as described in the valuation

Pub-2010 Disabled Retiree, sex distinct, generational

with Unisex, Social Security Data Scale, with job

category adjustments and set-backs as described in the

valuation

Discount Rate

June 30,

2023

June 30,

2022

June 30,

2023

June 30,

2022

1% Decrease

5.90%

(6,659)$ (7,486)$ (2,128)$ (844)$

Current Discount Rate

6.90%

(7,388) (8,465) (2,322) (1,129)

1% Increase

7.90%

(8,014) (9,301) (2,572) (1,396)

RHIA RHIPA

June 30,

2023

June 30,

2022

June 30,

2023

June 30,

2022

1% Decrease (7,388)$ (8,465)$ (2,586)$ (1,511)$

Current Trend Rate (7,388) (8,465) (2,322) (1,129)

1% Increase (7,388) (8,465) (2,028) (702)

RHIA RHIPA

Healthcare Cost Rate

Asset Class/ Strategy

Debt Securities 15.00 % 25.00 % 20.00 %

Public Equity 27.50 35.00 30.00

Private Equity 15.00 27.50 20.00

Real Estate 7.50 17.50 12.50

Real Assets 2.50 10.00 7.50

Diversif

y

in

g

Strate

g

ies

2.50 10.00 7.50

Opportunity Portfolio 0.00 5.00 0.00

Risk Parity 0.00 3.50 2.50

Total 100 %

Low Range High Range OIC Target

60 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

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

fo

llows:

DEPLETION DATE PROJECTION

GASB 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 82) 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 DESCRIPTION

OSU 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 POLICIES

Employers 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

METHODOLOGY

The 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.

Asset Class Target

Compound

Annual

Return

(Geometric)

Global Equity 30.62% 5.85%

Private Equity 25.50 7.71

Core Fixed Income 23.75 2.73

Real Estate 12.25 5.66

Master Limited Partnerships 0.75 5.71

Infrastructure 1.50 6.26

Commodities 0.63 3.10

Hedge Funds of Funds -

Multistrategy

1.25 5.11

Hedge Fund Equity - Hedge 0.63 5.31

Hedge Fund - Macro 5.62 5.06

US Cash -2.50 1.76

Assumed Inflation – Mean

2.40%

2023 | Annual Financial Report | 61

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

TOTAL OPEB LIABILITY

At June 30, 2023, the university reported a liability of

$10,200,084 for its proportionate share of the total OPEB

liability. The total OPEB liability as of June 30, 2023 was

measured as of June 30, 2023, and was determined by an

actuarial valuation as of July 1, 2022. At June 30, 2022, the

university reported a liability of $11,716,997 for its propor-

tionate share of the total OPEB liability. The total OPEB lia-

bility as of June 30, 2022 was measured as of June 30, 2022,

and was determined by an actuarial valuation as of July 1,

2021. 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, 2023 and 2022, OSU’s proportion was 9.66 and

9.50 percent, respectively, of participating employers.

For the year ended June 30, 2023 and 2022, OSU recorded

total PEBB OPEB related expense of $467,859 and $576,144,

respectively, due to the changes to the total OPEB liability

and deferred inﬂ ows, and amortization of previously de-

ferred amounts.

DEFERRED ITEMS

Most 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 calculat-

ed at the employer level. For the measurement period ended

June 30, 2023 and 2022 there were:

• Diﬀ erences between expected and actual experience

• Diﬀ erences due to changes in assumptions

• Changes in employer proportion since the prior

measurement date

• Diﬀ erences between employer contributions and

proportionate share of contributions

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 measurement period are as follows:

• Measurement period ended June 30, 2023 - 8.23 years

• Measurement period ended June 30, 2022 - 7.80 years

• Measurement period ended June 30, 2021 - 8.60 years

• Measurement period ended June 30, 2020 - 8.60 years

• Measurement period ended June 30, 2019 - 8.20 years

• Measurement period ended June 30, 2018 - 8.20 years

One year of amortization is recognized in the university’s

total OPEB expense for ﬁ scal years 2023 and 2022.

At June 30, 2023, 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, 2023, 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):

At June 30, 2022, OSU reported deferred outﬂ ows of

resources and deferred inﬂ ows of resources related to PEBB

OPEB from the following sources (in thousands):

ACTUARIAL METHODS AND ASSUMPTIONS

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 deter-

mined amounts are subject to continual revision as actual re-

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (2,338)$

Change in Assumptions

221 (3,404)

Change in Proportionate Share

272 (676)

Difference Between Contributions

and Proportionate Share of

Contributions

37 (13)

Total 530 (6,431)

Net Deferred Outflow/(Inflow) of

Resources

(5,901)$

Year Ended June 30:

2024

(1,020)$

2025

(1,020)

2026

(999)

2027

(1,001)

2028

(897)

Thereafter

(964)

(5,901)$

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Difference Between Expected and

Actual Experience

-$ (1,455)$

Change in Assumptions

281 (2,755)

Change in Proportionate Share

62 (821)

Difference Between Contributions

and Proportionate Share of

Contributions

45 (3)

Total 388 (5,034)

Net Deferred Outflow/(Inflow) of

Resources

(4,646)$

62 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

sults 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 RATE

Unfunded plans must use a discount rate that reﬂ ects a

20-year tax-exempt municipal bond yield or index rate. The

Bond Buyer 20-Year General Obligation Bond Index was

used to determine the discount rate for the OPEB liability.

The discount rate in eﬀ ect for the June 30, 2023 and 2022

reporting date was 3.65 and 3.54 percent, respectively.

SENSITIVITY ANALYSIS

The sensitivity analysis below shows the sensitivity of the

university’s proportionate share of the total OPEB liability

calculated using the discount rate of 3.65 percent as of June

30, 2023 and 3.54 percent as of June 30, 2022, as well as

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, 2023 and

2022 (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, 2023 and 2022 (in thousands):

19. RISK FINANCING

OSU is a member of the Public Universities Risk Manage-

ment 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 represen-

tative 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 and

clinics, 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.

Measurement Date June 30, 2023 June 30, 2022

Valuation Date July 1, 2022 July 1, 2021

Actuarial Cost Method

Inflation Rate 2.40 percent 2.00 percent

Discount Rate 3.65 percent 3.54 percent

Projected Salary Increases 3.40 percent 3.00 percent

Mortality Rates

Withdrawal and

Retirement Rates

December 31, 2021 Oregon

PERS valuation

December 31, 2020 Oregon

PERS valuation

Healthcare Cost Trend

Rate

Actuarial Methods and Assumptions:

Actuarial Assumptions:

Election and Lapse Rates

Entry Age Normal

30% of eligible employees

60% spouse coverage for males, 35% for females

Pursuant to ORS 243.135(8), growth in per-member

expenditures under self-insured plans and premium

amounts is assumed to be 3.40% per year

Pub-2010 mortality tables, adjusted for PERS experience

and generational mortality improvements

7% annual lapse rate

Discount Rate

June 30, 2023 June 30, 2022

1% Decrease

2.65%/2.54%

10,903$ 12,564$

Current Discount Rate

3.65%/3.54%

10,200 11,717

1% Increase

4.65%/4.54%

9,563 10,924

Healthcare Rate

June 30,

2023

June 30,

2022

1% Decrease 9,024$ 10,417$

Current Trend Rate 10,200 11,717

1% Increase 11,593 13,255

2023 | Annual Financial Report | 63

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

20. COMMITMENTS AND CONTINGENT

LIABILITIES

Outstanding commitments on partially completed, and

planned but not initiated construction projects totaled ap-

proximately $741,166,631 at June 30, 2023. These commit-

ments will be primarily funded from gifts and grants, bond

proceeds, and other OSU funds.

Several of the larger construction project commitments

include the Collaboration Innovation Complex for $205

million, Heating Plant Repurpose Remodel for $78 million,

Withycombe Hall renovations for $62 and the Upper Divi-

sion and Graduate Student Housing project for $42 million.

In conjunction with capital construction projects at the Cor-

vallis campus, OSU committed to a corridor improvement

plan for frontage improvement along Washington Way be-

tween 35th Street and Benton Way. The $29 million project

began in the Fall of 2022 and is scheduled to be completed

in the Spring of 2024.

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

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, 2023.

21. SUBSEQUENT EVENTS

Subsequent to June 30, 2023, eight more members of the

Pac-12 athletic conference gave notice that they are with-

drawing from the conference, thereby making it a total of

ten members to have withdrawn over the last year, leaving

only OSU and Washington State University (WSU) remain-

ing and creating substantial uncertainty about the confer-

ence’s viability going forward. As the two remaining Pac-12

members, OSU and WSU are exploring their options for

future conference membership and aﬃ liation. OSU Athlet-

ics receives between $26 million and $30 million per year in

conference television revenue distributions through June of

2024. It is unclear at this time what the ultimate outcome

will be for the Pac-12 conference and its remaining two in-

stitutions, and what impact that will have on OSU’s Athletic

Department revenues.

22. UNIVERSIT Y FOUNDATIONS

The university’s two related foundations are the OSU

Foundation (OSUF) and the Agricultural Research Founda-

tion (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 incor-

porated 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 govern-

ing 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 state-

ments. The ﬁ nancial activity is reported for the years ended

June 30, 2023 and 2022. Certain amounts within the June

30, 2022 component unit ﬁ nancial statements have been

reclassiﬁ ed to conform to the June 30, 2023 presentation.

During the years ended June 30, 2023 and 2022, gifts of

$94,951,178 and $106,714,452, respectively, were trans-

ferred from the foundations to OSU.

Please see the combining ﬁ nancial statements for the OSU

component units in the continuation of Note 22 starting on

page 66.

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

64 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

Component Units

Combining Financial Statements

Oregon

State Agricultural Total

Statements of Financial Position University Research Component

As of June 30, 2023 Foundation Foundation Units

ASSETS

Cash and Cash Equivalents 8,912$ 1,574$ 10,486$

Investments 949,416 29,209 978,625

Contributions, Pledges and Grants Receivable, Net 101,058 3,531 104,589

Assets Held-For-Sale 5,549 - 5,549

Assets Held Under Split-Interest Agreements 53,415 - 53,415

Charitable Trusts Held Outside the Foundation 10,487 - 10,487

Prepaid Expenses and Other Assets 6,097 232 6,329

Property and Equipment, Net 25,387 - 25,387

Total Assets 1,160,321$ 34,546$ 1,194,867$

LIABILITIES

Accounts Payable and Accrued Liabilities 4,503$ 197$ 4,700$

Endowment Assets Held for OSU 56,353 - 56,353

Accounts Payable to the University 32,060 5,439 37,499

Obligations to Beneficiaries of Split-Interest Agreements 23,720 - 23,720

Other Liabilities 80 - 80

Long-Term Liabilities 1,267 - 1,267

Total Liabilities 117,983 5,636 123,619

NET ASSETS

Without Donor Restrictions 33,550 4,214 37,764

With Donor Restrictions 1,008,788 24,696 1,033,484

Total Net Assets

1,042,338 28,910 1,071,248

TOTAL LIABILITIES AND NET ASSETS

1,160,321$ 34,546$ 1,194,867$

(in thousands)

66 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

Component Units

Combining Financial Statements

Oregon

State Agricultural Total

Statements of Activities University Research Component

For the Year Ended June 30, 2023 Foundation Foundation Units

CHANGE IN NET ASSETS HELD WITHOUT DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 968$ 167$ 1,135$

Investment Income, Net 7,774 517 8,291

Net Assets Released From Restrictions and Other Transfers 113,062 10,712 123,774

Other Revenues 25,347 - 25,347

Total Revenues 147,151 11,396 158,547

EXPENSES

University Support 109,032 7,204 116,236

Management and General 15,111 475 15,586

Development 22,816 - 22,816

Total Expenses 146,959 7,679 154,638

Increase In Net Assets Held Without Donor Restrictions 192 3,717 3,909

Beginning Balance, Net Assets Held Without Donor Restrictions 33,358 497 33,855

Ending Balance, Net Assets Held Without Donor Restrictions 33,550$ 4,214$ 37,764$

CHANGE IN NET ASSETS HELD WITH DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 80,348$ 10,136$ 90,484$

Investment Income, Net 57,026 18 57,044

Change in Value of Life Income Agreements 1,245 - 1,245

Other Revenues 3,893 - 3,893

Net Assets Released From Restrictions and Other Transfers (113,062) (10,712) (123,774)

Increase (Decrease) In Net Assets Held With Donor Restrictions 29,450 (558) 28,892

Beginning Balance, Net Assets Held With Donor Restrictions 979,338 25,254 1,004,592

Ending Balance, Net Assets Held With Donor Restrictions 1,008,788$ 24,696$ 1,033,484$

Beginning Balance, Total Net Assets 1,012,696$ 25,751$ 1,038,447$

Increase In T

otal Net Assets 29,642 3,159 32,801

Ending Balance, Total Net Assets 1,042,338$ 28,910$ 1,071,248$

(in thousands)

2023 | Annual Financial Report | 67

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

Component Units

Combining Financial Statements

Oregon

State Agricultural Total

Statements of Financial Position University Research Component

As of June 30, 2022 Foundation Foundation Units

ASSETS

Cash and Cash Equivalents 7,423$ 2,365$ 9,788$

Investments 887,834 28,597 916,431

Contributions, Pledges and Grants Receivable, Net 106,230 1,457 107,687

Assets Held-For-Sale 6,426 - 6,426

Assets Held Under Split-Interest Agreements 53,447 - 53,447

Charitable Trusts Held Outside the Foundation 11,452 - 11,452

Prepaid Expenses and Other Assets 6,024 - 6,024

Property and Equipment, Net 25,179 1 25,180

Total Assets 1,104,015$ 32,420$ 1,136,435$

LIABILITIES

Accounts Payable and Accrued Liabilities 12,834$ 207$ 13,041$

Endowment Assets Held for OSU 54,208 - 54,208

Accounts Payable to the University - 6,442 6,442

Obligations to Beneficiaries of Split-Interest Agreements 24,201 - 24,201

Other Liabilities 76 - 76

Long-Term Liabilities - 20 20

Total Liabilities 91,319 6,669 97,988

NET ASSETS

Without Donor Restrictions 33,358 497 33,855

With Donor Restrictions 979,338 25,254 1,004,592

Total Net Assets

1,012,696 25,751 1,038,447

TOTAL LIABILITIES AND NET ASSETS

1,104,015$ 32,420$ 1,136,435$

(in thousands)

68 | Oregon State University

Notes to the Financial Statements

For the Years Ended June 30, 2023 and 2022

Component Units

Combining Financial Statements

Oregon

State Agricultural Total

Statements of Activities University Research Component

For the Year Ended June 30, 2022 Foundation Foundation Units

CHANGE IN NET ASSETS HELD WITHOUT DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 643$ 58$ 701$

Investment Income, Net (14,479) (1,952) (16,431)

Net Assets Released From Restrictions and Other Transfers 110,756 9,636 120,392

Other Revenues 23,597 - 23,597

Total Revenues 120,517 7,742 128,259

EXPENSES

University Support 103,874 10,544 114,418

Management and General 13,579 457 14,036

Development 18,503 - 18,503

Total Expenses 135,956 11,001 146,957

Decrease In Net Assets Held Without Donor Restrictions (15,439) (3,259) (18,698)

Beginning Balance, Net Assets Held Without Donor Restrictions 48,797 3,756 52,553

Ending Balance, Net Assets Held Without Donor Restrictions 33,358$ 497$ 33,855$

CHANGE IN NET ASSETS HELD WITH DONOR RESTRICTIONS

REVENUES

Grants, Bequests and Gifts 194,602$ 9,889$ 204,491$

Investment Income, Net (67,887) (67) (67,954)

Change in Value of Life Income Agreements (7,030) - (7,030)

Other Revenues 4,130 - 4,130

Net Assets Released From Restrictions and Other Transfers (110,755) (9,636) (120,391)

Increase In Net Assets Held With Donor Restrictions 13,060 186 13,246

Beginning Balance, Net Assets Held With Donor Restrictions 966,278 25,068 991,346

Ending Balance, Net Assets Held With Donor Restrictions 979,338$ 25,254$ 1,004,592$

Beginning Balance, Total Net Assets 1,015,075$ 28,824$ 1,043,899$

D

ecrease In Total Net Assets (2,379) (3,073) (5,452)

Ending Balance, Total Net Assets 1,012,696$ 25,751$ 1,038,447$

(in thousands)

2023 | Annual Financial Report | 69

Required Supplementary Information (dollars in thousands)

For Fiscal Years Ended June 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Contractually Required Contribution

1

49,487$ 46,756$ 39,883$ 40,555$ 28,059$ 27,936$ 19,571$ 19,078$ 15,945$ 15,100$

Contributions in Relation to

Contractually Required

Contribution

49,487 46,756 39,883 40,555 28,059 27,936 19,571 19,078 15,945 15,100

Contribution Deficiency/(Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll 307,178$ 288,021$ 280,514$ 278,387$ 267,033$ 258,277$ 244,265$ 228,327$ 218,835$ 202,058$

Contributions as a Percentage of

Covered Payroll

16.1% 16.2% 14.2% 14.6% 10.5% 10.8% 8.0% 8.4% 7.3% 7.5%

1

For Actuarial Assumptions and Methods, see table in Note 17

As of the Measurement Date June 30,

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

University's Allocation of the Net

Pension Liability/(Asset)

2.41% 2.30% 2.07% 1.99% 2.00% 2.18% 2.15% 2.00% 1.80% 1.80%

University's Proportionate Share of

the Net Pension Liability/(Asset)

369,042$ 275,332$ 451,900$ 344,658$ 302,317$ 293,882$ 322,538$ 114,746$ (40,834)$ 91,930$

University's Covered Payroll 288,021$ 280,514$ 278,387$ 267,033$ 258,277$ 244,265$ 228,327$ 218,835$ 202,058$ 189,839$

University's Proportionate Share of

the Net Pension Liability/(Asset)

as a Percentage of Covered Payroll

128.13% 98.15% 162.33% 129.07% 117.05% 120.31% 141.26% 52.43% 20.21% 48.43%

Plan Fiduciary Net Position as a

Percenta

g

e of the Total

SCHEDULE OF UNIVERSITY CONTRIBUTIONS

Public Employees Retirement System

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY/(ASSET)

Public Employees Retirement System

70 | Oregon State University

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, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Actuarially Determined Contributions

1

33$ 35$ 43$ 47$ 1,205$ 1,171$ 1,172$ 1,104$ 1,170$ 1,091$

Contributions in Relation to the

Actuarially Determined

Contributions

33 35 43 47 1,205 1,171 1,172 1,104 1,170 1,091

Contribution De

f

iciency/(Excess)

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll

306,659$ 287,246$ 279,571$ 278,354$ 266,994$ 258,239$ 244,227$ 228,283$ 217,824$ 201,446$

Contributions as a Percentage of

Covered Payroll

0.01% 0.01% 0.02% 0.02% 0.45% 0.45% 0.48% 0.48% 0.54% 0.54%

1

For Actuarial Assumptions and Methods, see table in Note 17

As of the Measurement Date June 30, 2022 2021 2020 2019 2018 2017 2016

2.08% 2.46% 0.67% 2.52% 2.35% 2.46% 0.00%

(7,388)$ (8,465)$ (1,369)$ (4,869)$ (2,626)$ (1,027)$ 641$

University's Covered Payroll 287,246$ 279,571$ 278,354$ 266,994$ 258,239$ 244,227$ 228,283$

2.57% 3.03% 0.49% 1.82% 1.02% 0.42% 0.28%

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)

University's Proportionate Share of the Net RHIA

OPEB Liability/(Asset) as a Percentage of

Covered Payroll

University's Allocation of the Net RHIA OPEB

Liability/(Asset)

2023 | Annual Financial Report | 71

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, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Actuarially Determined Contributions

1

593$ 565$ 841$ 846$ 1,104$ 1,076$ 937$ 886$ 508$ 475$

Contributions in Relation to the

Actuarially Determined

Contributions

593 565 841 846 1,104 1,076 937 886 508 475

Contribution De

f

iciency/(Excess)

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered Payroll

306,659$ 287,246$ 279,571$ 278,354$ 266,994$ 258,239$ 244,227$ 228,283$ 217,824$ 201,446$

Contributions as a Percentage of

Covered Payroll

0.19% 0.20% 0.30% 0.30% 0.41% 0.42% 0.38% 0.39% 0.23% 0.24%

1

For Actuarial Assumptions and Methods, see table in Note 17

As of the Measurement Date June 30, 2022 2021 2020 2019 2018 2017 2016

6.78% 7.29% 7.44% 8.01% 7.98% 7.97% 8.01%

(2,322)$ (1,129)$ 742$ 2,028$ 2,820$ 3,718$ 4,299$

University's Covered Payroll 287,246$ 279,571$ 278,354$ 266,994$ 258,239$ 244,227$ 228,283$

0.81% 0.40% 0.27% 0.76% 1.09% 1.52% 1.88%

169.65% 124.64% 84.45% 64.86% 49.79% 34.25% 21.87%

Plan Fiduciary Net Position as a Percentage of the

Total RHIPA OPEB Liability/(Asset)

SCHEDULE OF UNIVERSITY PERS RHIPA OPEB EMPLOYER CONTRIBUTION

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE

NET PERS RHIPA OPEB LIABILITY/(ASSET)*

University's Allocation of the Net RHIPA OPEB

Liability/(Asset)

University's Proportionate Share of the Net RHIPA

OPEB Liability/(Asset)

University's Proportionate Share of the Net RHIPA

OPEB Liability/(Asset) as a Percentage of

72 | Oregon State University

Required Supplementary Information (dollars in thousands)

*This table will eventually contain 10 years of data. Only the data presented above is available at this time.

As of June 30, 2023 2022 2021 2020 2019 2018 2017

University's Allocation of the Total OPEB Liability 10,200$ 11,717$ 14,473$ 14,516$ 16,082$ 15,242$ 14,696$

University's Proportionate Share of the Total OPEB

Liability

9.66% 9.50% 9.58% 9.90% 9.98% 10.26% 10.15%

University's Covered Payroll 457,710$ 421,287$ 409,461$ 413,757$ 402,161$ 368,750$ 388,332$

University's Proportionate Share of the Total OPEB

Liability as a Percentage of Covered Payroll

2.23% 2.78% 3.53% 3.51% 4.00% 4.13% 3.78%

Total OPEB Liability as a % of Total Covered Payroll 2.19% 2.76% 3.72% 3.77% 4.31% 4.42% 4.45%

SCHEDULE OF UNIVERSITY'S PROPORTIONATE SHARE OF THE

TOTAL PEBB OPEB LIABILITY*

2023 | Annual Financial Report | 73

[THIS PAGE INTENTIONALLY LEFT BLANK]

74 | Oregon State University

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 University

oregonstate.edu

Oﬃ ce of the Vice President for

Finance and Administration

640 Kerr Administration Building

Corvallis, OR 97331-2156