Oregon State University Financial Reports for Executive Team Financial

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					Financial Statements for the Twelve Months Ending June 30, 2005
                           Oregon State University
                     Financial Reports for Executive Team
                   Financial Results for the Fiscal Year 2005


                                   CONTENTS

                                                                Page

Executive Summary………………………... ……………………………………2

Graph Fund Balance Three Year Comparison FY2005 - FY2003….…………....3

Balance Sheet;
Statement of Revenues, Expenses, and Other changes;
Statement of Cash Flows (Budgeted Operations Only); and
Initial Budget to Actual Comparison for:

       Combined Budgeted Operations…..….……………………………..…..4
       Ed and General Funds……………………………………………….…..6
       Agricultural Experiment Stations………………………………………10
       Extension Service……………………………………………………....14
       Forest Research Laboratory…………………………………………….18
Analysis of Financial Results: Budgeted Operations…………………………..22
       Combined Auxiliary Funds……………………………………………..31
       Housing…………………………………………………………………33
       Student Centers……………………………………………… ………...36
       Athletics………………………………………………………………...39
       Student Health Services………………………………………………...42
       Parking………………………………………………………………….45
       IS Win Net……………………………………………………………...48
       Misc. Auxiliary Funds………………………………………………….50
Analysis of Financial Results: Auxiliary Operations………………………….53
       Combined Service Center Funds……………………………………….60
       Telecommunications……………………………………..…………….62
       Inter Institutional Network……………………………………………..65
       ETS……………………………………………………………………..68
       Printing and Mailing……………………………………………………70
       Transportation Services………………………………………………...73
       Surplus Property………………………………………………………..76
       Desktop Services…………………………………………………….....79
       Misc. Service Center Funds…………………………………………….82
Analysis of Financial Results: Service Center Operations…………………….85
       Designated Operation Funds……………………………………………93

Debt Schedule…………………………………………………………………..94

Definitions……………………………………………………………………...95

Technical Specifications……………………………………………………….107
   Office of
Business Affairs


                                                                         October 5, 2005




                               Management Representation Statement




                    The following interim financial statements and supplementary reports are
                    the unaudited representations of management. Management believes
                    that the combined financial statements fairly, in all material respects,
                    reflect the form and substance of transactions and that the combined
  Oregon            financial statements reasonably present the University's financial
                    condition and results of its operations in conformity with generally
   State            accepted accounting principles. Management has included in these
 University         interim financial statements amounts that are based on estimates and
                    judgments, which it believes are reasonable under the circumstances.

 P.O. Box 1086      Oregon State University maintains a system of internal controls designed
Corvallis, Oregon   to provide reasonable assurance, at appropriate cost, as to the protection
  97339-1086        of assets and the integrity of the financial statements. An internal audit
                    function periodically tests this system of internal controls. On an annual
                    basis, an independent audit firm audits the University's Financial
                    Statements in accordance with generally accepted auditing standards and
                    provides an objective, independent review of the University's internal
                    controls and the fairness of its reported financial condition and results of
                    operations.

                    Certain prior fiscal year amounts have been reclassified to conform to the
                    current fiscal year interim financial statement presentation. The interim
                    numbers have been rounded without any change to account for the
                    differences that may arise from that rounding. These statements are not
                    budget documents. They are only concerned with actual financial
                    transactions.



  Telephone
 541-737-3031

     Fax
 541-737-0625
Financial Reports for Executive Team
Financial Results as of June 30, 2005 –
Education and General and Statewide Operations, Auxiliaries, and Service
Centers
EXECUTIVE SUMMARY

Ed & General Funds: Compared to prior year at June 30, cash position has declined by $6.4M.
The decline in cash is a result of a combination of expenses increasing at a greater rate than
revenues, most notably labor. Fund balance is $242K higher than at June 30, 2004, and includes
a fund addition of $3.7M due to a change in accounting for compensated absences liability. Net
change from operations is $3.3M lower than the previous year at June 30. Revenue increases in
enrollment fees (net of remissions), indirect cost recoveries and sales and services revenues led
to a ten percent increase in revenues. Increases in expenses for labor, maintenance and repairs,
fees and services, and general operating supplies resulted in an 11.4% increase in total
expenses.

Statewide Operations: Compared to prior year at June 30, cash position has declined for
Agriculture Experiment Stations (AES) and Extension (EXT). Forest Research Laboratory (FRL)
experienced a slight increase in cash due to a timing difference in receipt of federal funds. Fund
balance for AES and EXT has decreased. FRL reports a slight increase fund balance. Both AES
and EXT recorded a loss from operations for the period. EXT state appropriations declined as
expected due to an accelerated biennial schedule in the first year of the biennium (FY04). None
of the operations reported material increases in compensation expenses – a continued impact of
a three year history of retirements and staffing reductions and a lag in completing new hires.

Auxiliary Operations: With full implementation of GASB 34/35 reporting, some restatement of
prior year results are required for Housing, Student Centers, and Parking due to changes in
recording of non-current assets and liabilities. The format of reports for auxiliary operations has
also been changed in this quarterly report by separating operational gains/losses from plant fund
activity in a new section added to the bottom portion of the Statement of Revenues, Expenses
and Other Changes. Cash balances are positive for all operations and have increased a total of
$682K from the previous year. Restricted Cash balances are positive for all operations, and have
decreased by $682K due to replacement and repair activities (unrelated to the above Cash increase).
Working capital calculations for all operations are positive indicating sufficient liquidity. Because
the IS WIN network is a new organization this year, no prior year results are included in this report.

Service Centers: Three new service center operations were added this year under the
management of IS. One, Inter-Institutional Network is a new organization related to the merger of
the former OUS IS operations into OSU IS operations. The newly added ETS operation
transferred from OUS and is related to the fifth site universities enterprise systems support. The
new IS Desktop Services operations emerged from increased services provided by IS to E&G
funded operations. None of these operations have prior year results included in this report.
Comparison of current results to prior year for Motor Pool is difficult due to this operation’s prior
status as a unit in a holding pattern as to its future, and the recent reorganization and
commitment to sustain the operation. Telecom and Printing and Mailing, the two largest
continuing service center operations, have reported flat revenues for the past two years. On the
expense side, Telecomm reports reductions in expenses such as compensation and depreciation,
representing expenses controllable by management, while increases to Payroll are primarily
attributable to increased OPE expense. Printing and Mailing increase is mainly in contracted
personnel services based on long term absences of permanent employees. Both cash and
working capital are positive for all service centers indicating sufficient liquidity for these operations
as a whole.




                                                   2
                                     OREGON STATE UNIVERSITY
                                          FUND BALANCE
                                         FISCAL YEAR 2005

                            General                     Auxiliaries                    Service Centers
               $100

    Millions
                 $90
                 $80
                 $70
                 $60
                 $50
                 $40
                 $30
                 $20
                 $10
                  $0

                                         FY03 Actual    FY04 Actual    FY05 Actual




                                            General                                  Service
                                             Fund            Auxiliaries             Centers
                                                            (in thousands)
                        FY03 Actual            23,290              33,993              8,040
                        FY04 Actual            29,711              83,187             10,144
                        FY05 Actual            29,953              91,872             11,558



                       Ag Exp Station                   Extension                   Forest Research Lab
               $4.5
Millions




               $4.0
               $3.5
               $3.0
               $2.5
               $2.0
               $1.5

               $1.0
               $0.5
               $0.0

                                          FY03 Actual   FY04 Actual   FY05 Actual




                                                   AES                 EXT                 FRL
                                                            (in thousands)
                       FY03 Actual                2,795             1,547                1,093
                       FY04 Actual                4,119             3,235                1,458
                       FY05 Actual                3,230             2,885                1,648



                                                        3
                                                                   Oregon State University
                                                                       Balance Sheet
                                                           Education, General, and Statewide Funds
                                                                As of June 30, 2005 and 2004




                                           Education &    Experiment                         Forestry                                  Increase
                                             General       Stations         Extension      Research Lab     2005          2004        (Decrease)    % Change
Assets

   Cash                                     33,688,898       5,072,666        4,091,885       2,028,711   44,882,159    54,595,120    (9,712,961)      17.79%
   Accounts Receivable                      17,107,246          80,099          512,166             -     17,699,511    15,644,577     2,054,934       13.14%
   Allowance for Doubtful Accounts          (1,355,165)            -               (182)            -     (1,355,347)   (1,652,878)      297,532       18.00%
   Inventories                                 517,531             -            354,566             -        872,097       902,385       (30,288)       3.36%
   Prepaid Expenses and Deferred Charges     1,775,599          23,340           77,317          27,826    1,904,080     1,182,981       721,099       60.96%
   Due From Other Funds                        873,171             -                -               -        873,171       419,364       453,807      108.21%

Total Assets                                52,607,280       5,176,104        5,035,751       2,056,536   64,875,671    71,091,549    (6,215,878)       8.74%




Liabilities and Fund Balance

Liabilities

   Accounts Payable                          5,426,482         319,981          417,708          28,019    6,192,191     9,522,943    (3,330,752)      34.98%
   Salaries and Wages Payable                1,347,815             -                -               -      1,347,815     1,324,260        23,555        1.78%
   Liability for Compensated Absences        7,147,175       1,626,501        1,625,377         380,479   10,779,532    13,866,322    (3,086,790)      22.26%
   Deposits                                    175,187             -              6,150             -        181,337       167,004        14,333        8.58%
   Deferred Revenues                         8,557,487             -            101,152             -      8,658,639     7,687,769       970,871       12.63%
   Due to Other Funds                              -               -                -               -            -             -             -

Total Liabilities                           22,654,146       1,946,482        2,150,387         408,498   27,159,514    32,568,297    (5,408,783)      16.61%

Fund Balance                                29,953,134       3,229,622        2,885,364       1,648,038   37,716,158    38,523,252      (807,094)       2.10%

Total Liabilities and Fund Balance          52,607,280       5,176,104        5,035,751       2,056,536   64,875,671    71,091,549    (6,215,878)       8.74%




                                                          Unaudited - For Management Purposes Only

                                                                             4
                                                                                                        Oregon State University
                                                                                         Statement of Revenues, Expenses, and Other Changes
                                                                                               Education, General, and Statewide Funds
                                                                                         For the Twelve Months Ending June 30, 2005 and 2004




                                                                     Education &            Experiment                       Forestry                                         Increase
                                                                       General                Station       Extension      Research Lab          2005           2004         (Decrease)     % Change
Revenue

      Enrollment Fees                                                 125,768,053                   -              -                -          125,768,053    117,108,866      8,659,187        7.39%
      Fee Remissions                                                   (5,813,979)                  -              -                -           (5,813,979)   (11,031,523)     5,217,544       47.30%
      Government Appropriations                                        83,719,523            27,819,447     25,911,499        3,359,229        140,809,698    140,016,883        792,815        0.57%
      Gifts, Grants, and Contracts                                     23,245,488                   -              -                -           23,245,488     20,782,693      2,462,794       11.85%
      Transfers From State Agencies                                       978,404               312,940        232,383        2,839,835          4,363,562      2,836,721      1,526,841       53.82%
      Interest Income                                                   1,114,604                43,201            -                -            1,157,805      1,069,566         88,239        8.25%
      Sales & Services                                                  6,162,363             1,760,775      1,509,541          221,522          9,654,201      8,628,627      1,025,574       11.89%
      Other Revenue                                                       792,875                82,755        552,461           11,511          1,439,602      1,369,374         70,228        5.13%

Total Revenue                                                         235,967,330            30,019,118     28,205,884        6,432,097        300,624,429    280,781,206     19,843,222        7.07%




Expense

      Total Salaries and OPE                                          172,697,550            24,167,922     22,704,461        5,382,256        224,952,189    207,844,014     17,108,175        8.23%
      Service and Supplies                                             49,708,076             5,711,814      5,692,106          844,517         61,956,512     54,371,059      7,585,453       13.95%
      Capital Outlay                                                    8,454,381               574,424        158,343            6,276          9,193,424      8,128,748      1,064,676       13.10%
      Student Aid                                                         159,550                   -              225              -              159,775        146,493         13,283        9.07%

Total Expense                                                         231,019,556            30,454,160     28,555,135        6,233,048        296,261,900    270,490,314     25,771,586        9.53%

      Net Change From Operations                                         4,947,774             (435,042)      (349,251)         199,048          4,362,529     10,290,893     (5,928,364)       57.61%
      Net Transfers In/(Out)                                            (8,424,982)            (454,390)           -             (9,441)        (8,888,813)      (434,635)    (8,454,178)     1945.12%

Net Increase (Decrease) in Fund Balance                                 (3,477,208)            (889,432)      (349,251)         189,607         (4,526,284)     9,856,257    (14,382,542)     145.92%

Beginning Fund Balance                                                 29,710,982             4,119,223      3,234,616        1,458,431         38,523,252     28,724,825      9,798,427       34.11%
     Prior Period Adjustment (1)                                              -                     -              -                -                  -          (57,833)        57,833
     Fund Additions/(Deductions) to Other Funds                         3,719,359                  (170)           -                -            3,719,190            -        3,719,190

Ending Fund Balance                                                    29,953,134             3,229,622      2,885,364        1,648,038         37,716,158     38,523,250       (807,092)       2.10%


Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                                                                             Unaudited - For Management Purposes Only

                                                                                                                 5
                                       Oregon State University
                                            Balance Sheet
                                     Education and General Funds
                                     As of June 30, 2005 and 2004



                                                                           Increase
                                                2005           2004       (Decrease)    % Change
Assets

    Cash                                      33,688,898    41,967,202    (8,278,304)     19.73%
    Accounts Receivable                       17,107,246    15,181,336     1,925,910      12.69%
    Allowance for Doubtful Accounts           (1,355,165)   (1,653,414)      298,249      18.04%
    Inventories                                  517,531       560,882       (43,350)      7.73%
    Prepaid Expenses and Deferred Charges      1,775,599     1,096,710       678,888      61.90%
    Due From Other Funds                         873,171       419,364       453,807     108.21%

Total Assets                                  52,607,280    57,572,080    (4,964,801)      8.62%




Liabilities and Fund Balance

Liabilities

    Accounts Payable                           5,426,482     8,722,107    (3,295,625)     37.78%
    Salaries and Wages Payable                 1,347,815     1,324,260        23,555       1.78%
    Liability for Compensated Absences         7,147,175    10,147,064    (2,999,889)     29.56%
    Deposits                                     175,187       161,854        13,333       8.24%
    Deferred Revenues                          8,557,487     7,505,814     1,051,673      14.01%

Total Liabilities                             22,654,146    27,861,098    (5,206,952)     18.69%

Fund Balance                                  29,953,134    29,710,982       242,152       0.82%

Total Liabilities and Fund Balance            52,607,280    57,572,080    (4,964,801)      8.62%




                               Unaudited - For Management Purposes Only

                                                  6
                                           Oregon State University
                            Statement of Revenues, Expenses, and Other Changes
                                        Education and General Funds
                            For the Twelve Months Ending June 30, 2005 and 2004



                                                                             Increase
                                               2005            2004         (Decrease)      % Change
Revenue

   Enrollment Fees                          125,768,053     117,108,866       8,659,187         7.39%
   Fee Remissions                            (5,813,979)    (11,031,523)      5,217,544        47.30%
   Government Appropriations                 83,719,523      82,581,647       1,137,876         1.38%
   Gifts, Grants, and Contracts              23,245,488      20,580,668       2,664,819        12.95%
   Transfers From State Agencies                978,404             -           978,404
   Interest Income                            1,114,604       1,025,447          89,157         8.69%
   Sales & Services                           6,162,363       4,655,153       1,507,210        32.38%
   Other Revenue                                792,875         605,974         186,901        30.84%

Total Revenue                               235,967,330     215,526,231      20,441,099         9.48%



Expense

   Total Salaries and OPE                   172,697,550     156,718,398      15,979,152        10.20%
   Service and Supplies                      49,708,076      43,006,268       6,701,807        15.58%
   Capital Outlay                             8,454,381       7,447,273       1,007,107        13.52%
   Student Aid                                  159,550         146,493          13,058         8.91%

Total Expense                               231,019,556     207,318,432      23,701,125        11.43%

   Net Change From Operations                 4,947,774        8,207,800     (3,260,026)       39.72%
   Net Transfers                             (8,424,982)      (1,359,684)    (7,065,297)      519.63%

Net Increase (Decrease) in Fund Balance      (3,477,208)      6,848,115     (10,325,323)      150.78%

Beginning Fund Balance                       29,710,982      23,290,153       6,420,829        27.57%
  Prior Period Adjustment (1)                       -          (427,288)        427,288
  Fund Additions from Other Funds             3,719,359             -         3,719,359

Ending Fund Balance                          29,953,134      29,710,980           242,154       0.82%




                                Unaudited - For Management Purposes Only

                                                      7
                                       Oregon State University
                                       Statement of Cash Flows
                                     Education and General Funds
                             For the Twelve Months Ending June 30, 2005



Beginning Cash as of July 1, 2004                                                         41,967,202

Net Cash provided (used) by Changes in Assets and Liabilities

                                        June 2004        June 2005
Assets
  Accounts Receivable (Net)             13,527,923       15,752,081         (2,224,159)
  Inventories                              560,882          517,531             43,350
  Prepaid Expenses & Deferred Charges    1,096,710        1,775,599           (678,888)
  Due From Other Funds                     419,364          873,171           (453,807)
Liabilities
  Accounts Payable                       8,722,107        5,426,482         (3,295,625)
  Salaries and Wages Payable             1,324,260        1,347,815             23,555
  Liability for Compensated Absences    10,147,064         7,147,175        (2,999,889)
  Deposits                                 161,854          175,187             13,333
  Deferred Revenues                      7,505,814        8,557,487          1,051,673

 Total Net Cash Provided (Used) by Changes in Assets and Liabilities                      (8,520,456)

Cash Provided (Used) by Operating Activities

Revenue
 Enrollment Fees                                                          125,768,053
 Fee Remissions                                                            (5,813,979)
 Government Appropriations                                                 83,719,523
 Gifts, Grants, and Contracts                                              23,245,488
 Transfers From State Agencies                                                978,404
 Interest Income                                                            1,114,604
 Sales & Services                                                           6,162,363
 Other Revenue                                                                792,875
Expense
 Total Salaries and OPE                                                   (172,697,550)
 Service and Supplies                                                      (49,708,076)
 Capital Outlay                                                             (8,454,381)
 Student Aid                                                                  (159,550)
 Net Transfers                                                              (8,424,982)

 Total Cash Provided (Used) by Operating Activities                                       (3,477,208)

    Fund Additions from Other Funds                                                        3,719,359

Cash as of June 30, 2005                                                                  33,688,898




                             Unaudited - For Management Purposes Only

                                                     8
                                            Oregon State University
                                          Education and General Funds
                                                Fiscal Year 2005




                                                        Initial                         Favorable         %
                                                        Budget          Actual        (Unfavorable)    Variance
Revenue

      Enrollment Fees                              $    124,662,963 $ 125,768,053 $       1,105,090         0.9%
      Fee Remissions                                     (5,813,979)   (5,813,979)                -         0.0%
      Government Appropriations                          83,639,773    83,719,523            79,750         0.1%
      Gifts, Grants, and Contracts                       22,680,000    23,245,488           565,488         2.5%
      Transfers from Oregon State Agencies                        -       978,404           978,404            -
      Interest Income                                     1,000,000     1,114,604           114,604        11.5%
      Sales & Services                                    5,203,654     6,162,363           958,709        18.4%
      Other Revenue                                         226,820       792,875           566,055       249.6%
Total Revenue                                           231,599,231   235,967,331         4,368,100         1.9%




Expense

      Total Salaries and OPE                            165,837,659    172,697,550       (6,859,891)        -4.1%
      Service and Supplies                               52,582,424     49,708,076        2,874,348          5.5%
      Capital Outlay                                      6,755,415      8,454,381       (1,698,966)       -25.1%
      Student Aid                                         4,866,533        159,550        4,706,983         96.7%
Total Expense                                           230,042,031    231,019,557         (977,526)        -0.4%

      Net Change From Operations                          1,557,200      4,947,774        3,390,574        217.7%
      Net Transfers In/(Out)                             (1,557,200)    (8,424,982)      (6,867,782)      -441.0%
Net Increase (Decrease) in Fund Balance                           -     (3,477,208)      (3,477,208)

Beginning Fund Balance                                   29,710,982     29,710,982                -
     Fund Additions/(Deductions) to Other Funds                   -      3,719,359                -

Ending Fund Balance                                $     29,710,982 $ 29,953,133 $          242,151          0.8%




                                          Unaudited - For Management Purposes Only

                                                             9
                                       Oregon State University
                                            Balance Sheet
                            Statewide Operations - Ag. Experiment Stations
                                     As of June 30, 2005 and 2004



                                                                              Increase
                                             2005           2004             (Decrease)     % Change
Assets

    Cash                                   5,072,666      6,207,883           (1,135,218)     18.29%
    Accounts Receivable                       80,099         81,579               (1,480)      1.81%
    Allowance for Doubtful Accounts              -              -                    -
    Inventories                                  -              -                    -
    Prepaid Expenses and Deferred Charge      23,340          3,328               20,012     601.41%
    Due From Other Funds                         -              -                    -

Total Assets                               5,176,104      6,292,790           (1,116,685)     17.75%




Liabilities and Fund Balance

Liabilities

    Accounts Payable                         319,981        493,161            (173,180)      35.12%
    Salaries and Wages Payable                   -              -                   -
    Liability for Compensated Absences     1,626,501      1,680,405             (53,904)       3.21%
    Deposits                                     -              -                   -
    Deferred Revenues                            -              -                   -

Total Liabilities                          1,946,482      2,173,566            (227,084)      10.45%
                                                                                    -
Fund Balance                               3,229,622      4,119,223            (889,602)      21.60%

Total Liabilities and Fund Balance         5,176,104      6,292,790           (1,116,685)     17.75%




                               Unaudited - For Management Purposes Only

                                                    10
                                             Oregon State University
                              Statement of Revenues, Expenses, and Other Changes
                                 Statewide Operations - Ag. Experiment Stations
                              For the Twelve Months Ending June 30, 2005 and 2004



                                                                                          Increase
                                                           2005                2004      (Decrease)    % Change
Revenue

       Enrollment Fees                                        -                   -             -
       Fee Remissions                                         -                   -             -
       Government Appropriations                       27,819,447          27,825,256        (5,809)      0.02%
       Gifts, Grants, and Contracts                           -               192,516      (192,516)
       Transfers From State Agencies                      312,940                 -         312,940
       Interest Income                                     43,201              44,120          (918)      2.08%
       Sales & Services                                 1,760,775           2,422,515      (661,740)     27.32%
       Other Revenue                                       82,755             246,851      (164,096)     66.48%

Total Revenue                                          30,019,118          30,731,257      (712,139)      2.32%



Expense

       Total Salaries and OPE                          24,167,922          23,555,758       612,164       2.60%
       Service and Supplies                             5,711,814           5,982,571      (270,757)      4.53%
       Capital Outlay                                     574,424             632,561       (58,137)      9.19%
       Student Aid                                            -                   -             -

Total Expense                                          30,454,160          30,170,891      283,269        0.94%

       Net Change From Operations                         (435,042)            560,366     (995,408)     177.64%
       Net Transfers                                      (454,390)            594,089   (1,048,479)     176.49%

Net Increase (Decrease) in Fund Balance                   (889,432)          1,154,455   (2,043,887)     177.04%

Beginning Fund Balance                                   4,119,223           2,795,213    1,324,011      47.37%
     Prior Period Adjustment (1)                                               169,556     (169,556)
     Fund Deductions to Other Funds                            (170)

Ending Fund Balance                                      3,229,622           4,119,223     (889,432)     21.59%

Notes:
(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                    Unaudited - For Management Purposes Only

                                                              11
                                      Oregon State University
                                      Statement of Cash Flows
                           Statewide Operations - Ag. Experiment Stations
                            For the Twelve Months Ending June 30, 2005



Beginning Cash as of July 1, 2004                                                       6,207,883

Net Cash provided (used) by Changes in Assets and Liabilities

                                       June 2004        June 2005
Assets
   Accounts Receivable (Net)              81,579            80,099             1,480
   Inventories                               -                 -                 -
   Prepaid Expenses & Deferred Charges     3,328            23,340           (20,012)
   Due From Other Funds                      -                 -                 -
Liabilities
   Accounts Payable                      493,161           319,981          (173,180)
   Salaries and Wages Payable                -                 -                 -
   Liability for Compensated Absences  1,680,405         1,626,501           (53,904)
   Deposits                                  -                 -                 -
   Deferred Revenues                         -                 -                 -

  Total Net Cash Provided (Used) by Changes in Assets and Liabilities                    (245,616)

Cash Provided (Used) by Operating Activities

Revenue
  Enrollment Fees                                                              -
  Fee Remissions                                                               -
  Government Appropriations                                             27,819,447
  Gifts, Grants, and Contracts                                                 -
  Transfers From State Agencies                                            312,940
  Interest Income                                                           43,201
  Sales & Services                                                       1,760,775
  Other Revenue                                                             82,755
Expense
  Total Salaries and OPE                                               (24,167,922)
  Service and Supplies                                                  (5,711,814)
  Capital Outlay                                                          (574,424)
  Student Aid                                                                  -
  Net Transfers                                                           (454,390)

  Total Cash Provided (Used) by Operating Activities                                     (889,432)

  Fund Deductions to Other Funds                                                             (170)

Cash as of June 30, 2005                                                                5,072,666




                            Unaudited - For Management Purposes Only

                                                12
                                    Oregon State University
                      Statewide Operations - Agricultural Experiment Station
                                        Fiscal Year 2005




                                                      Initial           Year End         Favorable          %
                                                     Budget             Projection     (Unfavorable)     Variance
Revenue

     Government Appropriations                   $ 27,825,797       $ 27,819,447       $      (6,350)             -
     Interest Income                                   43,987             43,201                (786)         -1.8%
     Transfer fromState Agency                              -            312,940             312,940              -
     Sales & Services                               1,959,150          1,760,775            (198,375)        -10.1%
     Other Revenue                                                        82,755              82,755              -

Total Revenue                                        29,828,934          30,019,118          190,184           0.6%



Expense

     Total Salaries and OPE                          22,992,317          24,167,922        (1,175,605)        -5.1%
     Service and Supplies                             6,801,016           5,711,814         1,089,202         16.0%
     Capital Outlay                                      35,601             574,424          (538,823)     -1513.5%

Total Expense                                        29,828,934          30,454,160          625,226           2.1%

     Net Change From Operations                                 -          (435,042)        (435,042)               -
     Net Transfers In/(Out)                                     -          (454,390)        (454,390)               -

Net Increase (Decrease) in Fund Balance                         -          (889,432)        (889,432)               -

Beginning Fund Balance                                4,119,223           4,119,223                 -               -
     Fund Additions/Deductions to Other Funds                 -                (170)                -               -

Ending Fund Balance                              $    4,119,223     $     3,229,621    $    (889,602)        -21.6%




                                     Unaudited - For Management Purposes Only

                                                         13
                                          Oregon State University
                                              Balance Sheet
                                     Statewide Operations - Extension
                                       As of June 30, 2005 and 2004



                                                                           Increase
                                                 2005           2004      (Decrease)   % Change
Assets

    Cash                                       4,091,885      4,542,681    (450,796)       9.92%
    Accounts Receivable                          512,166        379,433     132,733       34.98%
    Allowance for Doubtful Accounts                 (182)           535        (717)     133.92%
    Inventories                                  354,566        341,503      13,062        3.82%
    Prepaid Expenses and Deferred Charges         77,317         78,864      (1,548)       1.96%
    Due From Other Funds                             -              -           -

Total Assets                                   5,035,751      5,343,017    (307,265)       5.75%




Liabilities and Fund Balance

Liabilities

    Accounts Payable                             417,708        262,805     154,903      58.94%
    Salaries and Wages Payable                       -              -           -
    Liability for Compensated Absences         1,625,377      1,658,491     (33,114)      2.00%
    Deposits                                       6,150          5,150       1,000      19.42%
    Deferred Revenues                            101,152        181,955     (80,802)     44.41%

Total Liabilities                              2,150,387      2,108,401      41,986        1.99%

Fund Balance                                   2,885,364      3,234,616    (349,251)      10.80%

Total Liabilities and Fund Balance             5,035,751      5,343,017    (307,265)       5.75%




                               Unaudited - For Management Purposes Only

                                                   14
                                                Oregon State University
                                 Statement of Revenues, Expenses, and Other Changes
                                           Statewide Operations - Extension
                                 For the Twelve Months Ending June 30, 2005 and 2004



                                                                                             Increase
                                                          2005                  2004        (Decrease)      % Change
Revenue

       Enrollment Fees                                        -                      -               -
       Fee Remissions                                         -                      -               -
       Government Appropriations                       25,911,499             26,635,119        (723,620)      2.72%
       Gifts, Grants, and Contracts                           -                      -               -
       Transfers From State Agencies                      232,383                    -               -
       Interest Income                                        -                      -               -
       Sales & Services                                 1,509,541              1,280,358         229,183      17.90%
       Other Revenue                                      552,461                460,309          92,152      20.02%

Total Revenue                                          28,205,884             28,375,786        (169,902)      0.60%



Expense

       Total Salaries and OPE                          22,704,461             22,223,593         480,868       2.16%
       Service and Supplies                             5,692,106              4,619,283       1,072,823      23.22%
       Capital Outlay                                     158,343                 31,987         126,356     395.03%
       Student Aid                                            225                    -               -

Total Expense                                          28,555,135             26,874,863       1,680,272       6.25%

       Net Change From Operations                         (349,251)             1,500,923     (1,850,174)     123.27%
       Net Transfers                                           -                   20,060            -

Net Increase (Decrease) in Fund Balance                   (349,251)             1,520,983     (1,870,235)     122.96%

Beginning Fund Balance                                  3,234,616               1,546,940      1,687,676      109.10%
     Prior Period Adjustment (1)                              -                   166,692       (166,692)

Ending Fund Balance                                     2,885,364               3,234,615       (349,251)     10.80%

Notes:
(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                        Unaudited - For Management Purposes Only

                                                                  15
                                      Oregon State University
                                     Statement of Cash Flows
                                 Statewide Operations - Extension
                           For the Twelve Months Ending June 30, 2005



Beginning Cash as of July 1, 2004                                                      4,542,680

Net Cash provided (used) by Changes in Assets and Liabilities

                                           June 2004     June 2005
Assets
   Accounts Receivable (Net)                   379,968      511,985       (132,016)
   Inventories                                 341,503      354,566        (13,062)
   Prepaid Expenses & Deferred Charges          78,864       77,317          1,548
   Due From Other Funds                            -            -              -
Liabilities
   Accounts Payable                          262,805        417,708        154,903
   Salaries and Wages Payable                    -              -              -
   Liability for Compensated Absences      1,658,491      1,625,377        (33,114)
   Deposits                                    5,150          6,150          1,000
   Deferred Revenues                         181,955        101,152        (80,802)

  Total Net Cash Provided (Used) by Changes in Assets and Liabilities                   (101,545)

Cash Provided (Used) by Operating Activities

Revenue
  Enrollment Fees                                                              -
  Fee Remissions                                                               -
  Government Appropriations                                             25,911,499
  Gifts, Grants, and Contracts                                                 -
  Transfers From State Agencies                                            232,383
  Interest Income                                                              -
  Sales & Services                                                       1,509,541
  Other Revenue                                                            552,461
Expense
  Total Salaries and OPE                                                (22,704,461)
  Service and Supplies                                                   (5,692,106)
  Capital Outlay                                                           (158,343)
  Student Aid                                                                  (225)
  Net Transfers                                                                 -

  Total Cash Provided (Used) by Operating Activities                                    (349,251)


Cash as of June 30, 2005                                                               4,091,884




                           Unaudited - For Management Purposes Only

                                                 16
                                    Oregon State University
                               Statewide Operations - Extension
                                       Fiscal Year 2005



                                               Initial                            Favorable          %
                                              Budget              Actual        (Unfavorable)     Variance
Revenue
     Government Appropriations            $ 26,443,580 $ 25,911,499 $                (532,081)         -2.0%
     Transfer from State Agencies                    -      232,383                   232,383              -
     Sales & Services                        1,345,274    1,509,541                   164,267          12.2%
     Other Revenue                             275,453      552,461                   277,008         100.6%

Total Revenue                                 28,064,307          28,205,884          141,577           0.5%




Expense

     Total Salaries and OPE                   23,748,994          22,704,461         1,044,533          4.4%
     Service and Supplies                      4,276,813           5,692,331        (1,415,518)       -33.1%
     Capital Outlay                               38,500             158,343          (119,843)      -311.3%

Total Expense                                 28,064,307          28,555,135         (490,828)         -1.7%

     Net Change From Operations                           -         (349,251)        (349,251)               -
     Net Transfers                                        -                -                -                -

Net Increase (Decrease) in Fund Balance                   -         (349,251)        (349,251)               -

Beginning Fund Balance                         3,234,616           3,234,616                -                -
                                                                                            -
Ending Fund Balance                       $    3,234,616      $    2,885,365    $    (349,251)        -10.8%




                                Unaudited - For Management Purposes Only

                                                     17
                                    Oregon State University
                                         Balance Sheet
                       Statewide Operations - Forestry Research Laboratory
                                  As of June 30, 2005 and 2004



                                                                        Increase
                                              2005          2004       (Decrease)       % Change
Assets

    Cash                                    2,028,711    1,877,354           151,356        8.06%
    Accounts Receivable                           -          2,229            (2,229)
    Allowance for Doubtful Accounts               -            -                 -
    Inventories                                   -            -                 -
    Prepaid Expenses and Deferred Charges      27,826        4,079            23,747      582.19%
    Due From Other Funds                          -            -                 -

Total Assets                                2,056,536    1,883,663           172,873        9.18%




Liabilities and Fund Balance

Liabilities

    Accounts Payable                           28,019       44,870           (16,850)      37.55%
    Salaries and Wages Payable                    -            -                 -
    Liability for Compensated Absences        380,479      380,362               117        0.03%
    Deposits                                      -            -                 -
    Deferred Revenues                             -            -                 -

Total Liabilities                             408,498      425,232           (16,733)       3.94%

Fund Balance                                1,648,038    1,458,431           189,607       13.00%

Total Liabilities and Fund Balance          2,056,536    1,883,663           172,873        9.18%




                           Unaudited - For Management Purposes Only

                                               18
                                             Oregon State University
                              Statement of Revenues, Expenses, and Other Changes
                              Statewide Operations - Forestry Research Laboratory
                              For the Twelve Months Ending June 30, 2005 and 2004



                                                                                           Increase
                                                               2005              2004     (Decrease)   % Change
Revenue

       Enrollment Fees                                             -                -           -
       Fee Remissions                                              -                -           -
       Government Appropriations                             3,359,229        2,974,861     384,369       12.92%
       Gifts, Grants, and Contracts                                -              9,509      (9,509)
       Transfers From State Agencies                         2,839,835        2,836,721       3,114        0.11%
       Interest Income                                             -                -           -
       Sales & Services                                        221,522          270,601     (49,080)      18.14%
       Other Revenue                                            11,511           56,240     (44,730)      79.53%

Total Revenue                                                6,432,097        6,147,932     284,164        4.62%



Expense

       Total Salaries and OPE                                5,382,256        5,346,265      35,991        0.67%
       Service and Supplies                                    844,517          762,936      81,580       10.69%
       Capital Outlay                                            6,276           16,927     (10,651)      62.92%
       Student Aid                                                 -                -           -

Total Expense                                                6,233,048        6,126,129     106,920        1.75%
                                                                                                -
       Net Change From Operations                              199,048           21,804     177,244      812.90%
       Net Transfers                                            (9,441)         310,900         -          0.00%

Net Increase (Decrease) in Fund Balance                        189,607          332,704    (143,097)      43.01%

Beginning Fund Balance                                       1,458,431        1,092,520     365,911       33.49%
     Prior Period Adjustment (1)                                   -             33,207     (33,207)

Ending Fund Balance                                          1,648,038        1,458,431     189,607       13.00%

Notes:
(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                    Unaudited - For Management Purposes Only

                                                              19
                                    Oregon State University
                                    Statement of Cash Flows
                      Statewide Operations - Forestry Research Laboratory
                          For the Twelve Months Ending June 30, 2005



Beginning Cash as of July 1, 2004                                                      1,877,354

Net Cash provided (used) by Changes in Assets and Liabilities

                                           June 2004     June 2005
Assets
   Accounts Receivable (Net)                     2,229             -          2,229
   Inventories                                     -               -            -
   Prepaid Expenses & Deferred Charges           4,079          27,826      (23,747)
   Due From Other Funds                            -               -            -
Liabilities
   Accounts Payable                             44,870       28,019         (16,850)
   Salaries and Wages Payable                      -            -               -
   Liability for Compensated Absences          380,362      380,479             117
   Deposits                                        -            -               -
   Deferred Revenues                               -            -               -

  Total Net Cash Provided (Used) by Changes in Assets and Liabilities                    (38,251)

Cash Provided (Used) by Operating Activities

Revenue
  Enrollment Fees                                                              -
  Fee Remissions                                                               -
  Government Appropriations                                              3,359,229
  Gifts, Grants, and Contracts                                                 -
  Transfers From State Agencies                                          2,839,835
  Interest Income                                                              -
  Sales & Services                                                         221,522
  Other Revenue                                                             11,511
Expense
  Total Salaries and OPE                                                 (5,382,256)
  Service and Supplies                                                     (844,517)
  Capital Outlay                                                             (6,276)
  Student Aid                                                                   -
  Net Transfers                                                              (9,441)

  Total Cash Provided (Used) by Operating Activities                                    189,607


Cash as of June 30, 2005                                                               2,028,711




                           Unaudited - For Management Purposes Only

                                                 20
                                    Oregon State University
                       Statewide Operations - Forestry Research Laboratory
                                         Fiscal Year 2005




                                                       Initial                           Favorable        %
                                                      Budget              Actual       (Unfavorable)   Variance
Revenue
     Government Appropriations                    $   3,166,319       $   3,359,229    $    192,910          6.1%
     Transfers From State Agencies                    2,400,000           2,839,835         439,835         18.3%
     Sales & Services                                         -             221,522         221,522             -
     Other Revenue                                            -              11,511          11,511             -

Total Revenue                                         5,566,319           6,432,097         865,778        15.55%



Expense

      Total Salaries and OPE                          5,015,817           5,382,256        (366,439)        -7.3%
      Service and Supplies                              523,422             844,517        (321,095)       -61.3%
      Capital Outlay                                     27,080               6,276          20,804         76.8%

Total Expense                                         5,566,319           6,233,049        (666,730)       -12.0%

      Net Change From Operations                                  -         199,048         199,048               -
      Net Transfers In/(Out)                                      -          (9,441)         (9,441)              -

Net Increase (Decrease) in Fund Balance                           -         189,607         189,607               -

Beginning Fund Balance                                1,458,431           1,458,431               -               -

Ending Fund Balance                               $   1,458,431       $   1,648,038    $    189,607         13.0%




(1) Compensated Absence Liability Adjustment




                                        Unaudited - For Management Purposes Only

                                                             21
Financial Reports for Executive Team
Financial Results for the Month Ending June 30, 2005
Education and General Funds 001000-019999
The Statewide Funds 030000 – 039999

Education and General Funds

Background: The financial activity of Oregon State University (OSU) Budgeted
Operations is comprised of Education and General Funds (E&G) and the three
Statewide Operations; Agricultural Experiment Stations (AES), Extension Service (EXT)
and Forest Research Lab (FRL). The operations are presented in three financial reports
for each unit: Balance Sheet, Operating Statement, and Statement of Cash Flows. The
Office of Business Affairs’ analysis of E&G and Statewide Operations is provided to
highlight and explain for management significant increases or decreases in fund
balance, assets, liabilities, revenues expenses, or transfers within each operation.

Statement of Revenues, Expenses, and Other Changes

Overview/Summary: The Statement of Revenues, Expenses and Other Changes
presents the results of revenue and expense activity, the net change in fund balance due
to operations as of the end of the reported period, and ending fund balance after prior
period adjustments and fund additions and deletions. The E&G and Statewide operating
cycles are consistent with the prior year with the exception of EXT in that the
appropriations from the State are lower in this second year of the biennium. The E&G
and all three statewide operations report net decreases compared to the prior year in
fund balance due to operations. E&G funds show a decrease from operations of $3.5M,
AES shows a decrease of $889K, EXT decreased $349K, and FOR decreased $190K.

Revenue

Enrollment Fees include revenues from tuition and student fees. Revenue from
Enrollment Fees increased $8.7M in comparison to the previous year, this increase is
primarily due to a $7.9M, or 7 percent increase in revenue from tuition. This increase is
due to both an increase in enrollment and increased tuition rates. Major increases and
decreases in Enrollment Fees are as follows:

                                                 Increased ($000)     Decreased ($000)
Resident Undergraduate Tuition                   6,280
Non Resident Undergraduate Tuition                                    1,013
Continuing Education Tuition Credit              2,269
Vet Med Total Tuition                              812
Resource & Course Fees                             794

Fee Remissions are credits in support of OSU graduate students, the decrease of
$5.2M is the result of a legislative cap on allowed fee remission support from the
General Fund. OSU continued to support graduate students through gift funds which
are not reported in this financial statement.




                                           22
The source of Education and General Fund Government Appropriations is solely
from the State of Oregon. Revenue from State Appropriations increased $1.1M or 1.38
percent.

Revenues provided by Gifts, Grants and Contracts are solely from the Facilities and
Administrative Rate charged to grants and contracts. The current OSU F&A on-campus
organized research rate is .415 percent of modified total direct costs. Revenues in this
area increased $2.7M, or 12.95%, this increase is due to continued increases in
research activity at OSU.

Transfers from State Agencies in the amount of $978K were the result of a one time
refund from the Public Employees Benefit Board (PEBB). There was no revenue
reported for transfers from state agencies during fiscal year 2004.

Interest Income is the net interest earned from accounts held at the State Treasury, this
source of income was $89K greater than the previous year. Increases are due to a
slight increase in interest rates and improved management of cash balances.

Sales and Services Revenues are generated from services provided outside of the
university, sales revenues are generated by items such as; rental and lease income,
sales or trade-in of assets, and animal sales and board income. Revenues from this
source increased $1.5M or 32.38 percent during fiscal year 2005. The greatest
increases were noted in the College of Pharmacy of $397K, College of Veterinary
Medicine of $317K, Procurement and Construction Contracting of $192K, and the
Department of Public Service of $108K. Revenues from services realized the greatest
increases with $722K increase in general services and $156K increase in Technical
Services Income.

Other revenues are generated from miscellaneous other revenues and reimbursements
from outside entities. Revenues in this category increased $186K or 30.84 percent
during fiscal year 2005. The greatest increases were noted in the College of Health and
Human Sciences of $118K, College of Atmospheric and Oceanic Sciences of $69K, and
Hatfield Marine Science Center of $81K.

Expense

The largest increase in expenses was due to increased labor costs of $16M. Labor
costs associated with unclassified pay increased $6M and total costs associated with
Other Payroll Expenditures increased $7.4M. Smaller increases were noted in classified
salaries of $352K and labor costs associated with student pay of $534K. Major
variances in labor costs by organization are included in the graph below:




                                           23
                                                               Major Labor Cost Variances
                  25,000



                  20,000
 Thousands




                  15,000



                  10,000



                   5,000



                       -



                  (5,000)
                                                          Ag Sci/Experiment                                                        Enrollment
                                Academic Affairs                                        Science              Liberal Arts                             Engineering
                                                              Stations                                                            Management
               FY04                  3,109                      5,669                    22,039                 17,697                3,029              18,463
               FY05                  2,051                      6,707                    23,361                 19,115                4,911              20,665
               Variance              (1,058)                    1,038                    1,322                  1,418                 1,882              2,201




Services and Supplies expense increased $6.7M; major variances by expense category
are included in the graph below:

                                                                  Services & Supplies Major Variances

               20,000

               15,000
   Thousands




               10,000

                5,000

                            -

               (5,000)            Transfers to OR State
                                                          Other Services & Supplies   Personal Property   Maintenance & Repairs   Supplies Expense   Fees & Services
                                        Agencies

                   FY05                   3,927                     6,137                   7,444                 7,255                9,138             10,251
                   FY04                   214                       5,237                   8,437                 8,981                12,761            15,751
                   Variance              (3,713)                    (900)                   992                   1,726                3,623              5,500




The $3.7M variance in Transfers to Oregon State Agencies is primarily due to the Fiscal
Year 2004 accrual of the PERS Disapropriation of HB5077, section 87. The majority of
the $5.5M increase in expenditures for fees and services resulted from $3.8M for
operations in support of OUS Information Services functions that were moved from the
General Fund to the ETS Service Center. Additional variances in fees and services
resulted from a $170K Education and General Funding allocation for Daily Mail and
$225K for a Community Network Contract, both of which did not occur during the
previous fiscal year.

The Supplies expense variance of $3.6M is the result of an increase in expenditures of
several types. Thirty-six percent (36%) of this variance is due to a $1.3M increase in
subscription costs, when compared to fiscal year 2004, primarily for the Library. The
remainder of the variance occurred in Minor Equipment-$776K, Office Equipment and
Furniture (Non-capitalized)-$488K, Laboratory Supplies - $345K, Software - $200K,
Specialized Equipment (Non-capitalized) - $196K, Office and Administrative Supplies -
$167K, and General Operating Supplies - $111K.


                                                                                             24
Maintenance and Repairs recorded an increase of $1.7M during fiscal year 2005. The
expense for Building Maintenance and Repairs increased $1M accounting for 59% of
this variance. Other notable variances occurred in Equipment Maintenance and Repair,
Contract Maintenance/Repair on Buildings, and Custodial Supplies. These expenditures
increased $190K, $195K, and $101K respectively.

Capital Outlay increased 13.52% or $1M when compared to fiscal year 2004. Analysis
of capital expenditures shows the $1M variance is primarily the result of Equipment
purchases increasing $1.4M and Library purchases decreasing by $538K. Increases
were also posted in Vehicles, Construction in Progress for Equipment, and Buildings.

Net transfers increased $7.1M during fiscal year 2005. This variance is primarily due to
transfers out to other funds which showed an increase of $7.1M. Transfers into E & G
Funds were $32M for fiscal year 2005. Transfers out of E & G Funds were
approximately $40M during the past fiscal year.

Balance Sheet

Overview/Summary: The Balance Sheet presents assets and liabilities on an accrual
basis as of June 30, 2005 in comparison to June 30, 2004. The term “fund balance”
refers to the difference between total assets and total liabilities. The fund balance
recorded in the balance sheet for each operation is the balance at the end of the
reporting period. A fund balance is an indicator of an operation’s current financial
condition, not its cash position. The changes to fund balance that occur over time
indicate that operating results for that reporting period are providing either a surplus or a
decrease in the organization’s financial condition.
Assets
Cash balance for Education and General Funds decreased $8.3M from June 30 of the
previous year. A total reduction of $3.5M in cash was from operating activities,
expenses increased at a faster rate than revenues most notable was the increase in the
cost of labor. Changes in assets and liabilities resulted in total cash used of $8.5M, this
total is offset by a fund addition from other funds of $3.7M due to a change in accounting
for the Compensated Absences Liability which additionally resulted in a $3M decrease in
the liability.
Accounts Receivable increased by $1.9M and is primarily attributable to an increase in
student A/R of $1.4M, the remaining increase is from non student accounts receivable
across campus. The remaining increase is due to various sources, most notably, is a
$306K receivable for refunds due the library from a prepaid expense from fiscal year
2004.
Allowance for Doubtful Accounts balance represents management’s estimate of the
uncollectible portion of the Accounts Receivable balance at year-end. The Allowance for
Doubtful Accounts was reviewed and adjusted at year end, as has been the historical
practice. For the two prior years, the allowance was calculated at 13%. Given that the
write-off process of SIS A/R accounts has become standardized, this year it was
deemed appropriate to reduce the allowance calculation to 10% on most accounts.




                                             25
Inventories for the Ed and General funds consist of supplies held by stores operations
such as Facilities Services and the College of Veterinary Medicine. The variance of
$43K represents the changes to inventories for purchases and usage. Facilities
Services inventory decreased $8K from fiscal year 2004. Veterinary Medicine’s
inventory increased $47K and Supplies inventory decreased $82K for the Marine
Mammal Research Endowment.
Prepaid Expenses and Deferred Charges increased $679K over fiscal year 2004.
This is primarily due to summer session expenses and year end accruals for purchases.
Due from Other Funds Only the E&G fund group carries a year-end balance in this
account. For fiscal year 2004, the balance is due from Grants and Contracts funds.
At year-end, the Research Accounting unit of Business Affairs reviews fund balances
and cash balances of each grant and contract. Agreements with the funding source for
those grants and/or contracts with cash deficits are reviewed to determine the status of
expenditures to date compared to expenditure limitations agreed to with the funding
source. If expenditure limitations have been reached or exceeded, and no amendment
to the agreement is on file extending the limitation amount, the grant administrator is
instructed to suspend operations until an amendment to the agreement has been
received to allow further expenditures. In the interim, a loan from the Ed and General
fund group is secured to cover the deficit balance.
The year-end balance of the Due From restricted funds account has varied from
approximately $500K to $1M each year for the last several years. Grants and contracts
awards have exceeded $120M annually for the past four years, with those awards
representing literally thousands of separate agreements. These facts, combined with
the rarity of grants and contracts failing to cover such cash deficits and therefore repay
these loans from the E&G fund group lead to a conclusion that these loans are likely to
be repaid.
Liabilities
Accounts Payable year end balance decreased $3.3M and is due to the Fiscal Year
2004 accrual of the PERS Disapropriation of HB5077, section 87 that was paid in
January, 2005.
Liability for Compensated Absences balance is affected by compensation expense
changes such as changes in the cost of benefits and changes in salary levels. Business
Affairs works collaboratively with the OUS Controller’s Division to determine the liability
associated with E&G and Statewide operations. OUS implemented a change in
accounting policy in December 2004, which is intended to ensure that all OUS
campuses use a consistent methodology for distributing the compensated absences
liability between fund types. For OSU this policy change resulted in a reduction of the
liability in E&G funds by $3.7M, an increase in the liability for Designated Operations of
$260K and an increase in the liability for restricted fund types by $3.5M. This change in
distribution additionally caused an increase in the E&G fund balance of $3.7M.
Deferred Revenues increase of $1.5M is primarily due to revenues of $904K not yet
earned for summer session.
Cash Flows

In total, the cash balances for the Ed and General and Statewide operations funds have
decreased by $8.3 M compared to prior year. The Ed and General funds realized a total



                                            26
decrease of $12M which was mitigated by a fund addition of $3.7M. The greatest
source of cash for these funds comes from Enrollment Fees and Government
Appropriations, while the greatest uses of cash are in the areas of compensation and
service and supplies expenditures.
Agricultural Experiment Stations – AES:

Background: Agricultural Experiment Station is the research arm of Oregon State
University’s College of Agricultural Sciences. It has more than 400 scientists in 28
academic units in four OSU colleges --- Agricultural Sciences, Health and Human
Sciences, Science, and Veterinary Medicine. They work on projects related to food and
fiber production, processing and marketing, wise use of natural resources, human
nutrition, forestry, commercial fishing and other topics important to the economic and
environmental well-being of Oregonians.
Statement of Revenues, Expenses, and Other Changes

Revenues: The revenues for AES showed a net decrease of $712K during the year
ending June 30, 2005 when compared to the period ending June 30, 2004. The actual
revenues for AES decreased $832K when two one time events are considered. AES
had one-time revenue from a return of overhead charges of $193K in FY2004. During
Fiscal Year 2005, AES received a PEBB Subsidy of $313K that was not received in FY
2004. Sales & Services revenue dropped $662K from the previous year and Other
Revenues were lower by $164K. AES appears to have seen decreased revenue in all
potential income sources.

Expenses: Total labor costs for AES rose $612K over previous year levels. Further
analysis of these organizations shows a general trend of increases in labor costs,
however, some organizations showed large increases and large decreases.

AES posted an overall decrease of $271K in Services and Supplies compared with June
30, 2004. AES showed increased expenses for supplies, maintenance and repairs,
training, travel, assessments, and other services and supplies with decreases in fees
and services, utilities, communication, agricultural related supplies, rentals and leases,
and personal property. Capital expenses decreased $58K due to less personal and real
property spending.

Total expenses for AES exceeded total revenues by $889K of which $435K was as a
result of operations and $454K a net result of transfer activity. Thus, Agricultural
Experiment Stations fund balance experienced a decrease in FY 2005.

Balance Sheet


Assets: The cash balance for AES decreased $1.14M due to the total cash used by
operating activities of $889K and the net cash used by changes in assets and liabilities
of $245K. Accounts receivable decreased slightly for the year ending June 30, 2005.
Prepaid expenses increased $20K as a result of year end accrual activity.




                                            27
Liabilities: Accounts Payable decreased by $173K as compared with FY 2004 primarily
due to a decrease at year end of invoices payable. Compensated Absence Liability
decreased $54K based on current levels of vacation and compensated leave benefits.

Extension Service – EXT:

Background: Oregon State University's Extension Service provides education and
information based on timely research to help Oregonians solve problems and develop
skills related to youth, family, community, farm, forest, energy, and marine resources.
The OSU Extension Service arm reaches across several colleges and 37 county offices
throughout the State of Oregon. Extension funding sources include state appropriations,
federal formula funds, county appropriations, and federal grants.

Statement of Revenues, Expenses, and Other Changes

Revenues: State appropriations were lower for EXT by $3.5M as expected because of
their distribution of state appropriations at the rate of 55 percent the first year of the
biennium and 45 percent the second year. Use of federal Smith Lever Formula Funds
was greater by $3.1M than the previous year. Sales and Services and Other revenues
increased in total by$ 321K, the increase is primarily attributable to increases in
programs and Title III funding at the county offices which showed an total increase in
sales & service and other revenues of $308K. However, revenues from county
appropriations decreased $275K; the decrease is primarily attributable to decreases in
Washington, Lane, Lincoln and Curry Counties. All other county revenues remained
constant with some counties receiving slight increases.

Expenses: Total labor costs increased by $480K, increases in labor expenses were
noted in county operations of $725K, EXT administrative operations of $232K, 4-H Youth
Development 191K, and Sea Grant Extension $118K. Decreases in labor expenses
were noted in Family and Community Development of $191K, Agricultural programs of
$200K and Forestry programs of $263K.

Service and Supplies expense increased a total of $1.1M, increases in expenses were
noted in county operations of $336K, Agricultural programs of $358K, Family and
Community Development, $207K, 4-H Youth Development $176K, and Sea Grant
Extension $44K. Decreases in expenses wee noted in Forestry programs of $31K and
EXT administrative operations of $32K.

Capital expenses increased $126K due to capital purchases for Extension Special
Projects, Umatilla County Office remodel, and Animal Sciences Extension.

Total Expenses exceeded total revenues by $349K which resulted in a decrease in
Extension Service Fund Balance.

Balance Sheet

Assets: Cash balance for the year decreased $451K due to net cash used by changes
in assets and liabilities of $102K and total cash used by operating activities of $349K.
Accounts Receivable increased slightly due to an increase in year end accrual of earned
revenues not yet received.



                                            28
Liabilities: Accounts Payable increased by $155K primarily due to unpaid invoices and
year end accrual of items received and not yet paid for. Deferred revenues decreases of
$81K are primarily due to a decrease in unearned revenues of $110K reported by
Douglas County.

Forest Research Lab – FRL

Background: The Forest Research Laboratory (FRL) conducts research leading to
sustainable forest yields, innovative and efficient use of forest products, and responsible
stewardship of Oregon's resources. The primary source of revenues for FRL is state
and federal appropriations and Oregon Harvest Tax. The 2005 Oregon Legislature (HB
2122) renewed the taxation rate of $0.67 per thousand board feet of commercial timber
harvested in Oregon. This tax is paid quarterly to the Oregon Department of Revenue,
and then transferred to OUS. The funding helps the Forest Research Laboratory
support efforts to improve economic returns, enhance forest regeneration and yield,
protect water and wildlife resources, and develop innovative and efficient uses of forest
products.

FRL scientists are involved in projects that impact the state, the nation and the world. In
cooperation with a number of public and corporate partners, Dr. Arne Skaugset has
established a multi-million dollar effort to study changes in water quality and
fish/amphibian populations along a section of Hinkle Creek in Douglas County. The
study will help determine the optimum size for harvest-free riparian zones along state
waterways; potentially leading to changes in the Oregon Forest Practices Act that
currently, and needlessly, restrict timber harvesting activities. Developing a new
adhesive product that will ultimately benefit millions of people across the country has
been the recent work of Dr. Kaichang Li. The current bonding agent for wood composite
products is formaldehyde based. Formaldehyde causes physical discomfort in many
people and has recently been designated as a carcinogen. During a trip to the beach,
Dr. Li observed how tightly mussels bonded to rocks, so started to investigate the
chemistry involved with their sticky capability. His studies resulted in the development of
a soy based adhesive that mimics the protein secreted by mussels. Research with a
world-wide impact is being conducted by Dr. Beverly Law. Dr. Law is the Science Chair
for AmeriFlux, a network of 120 sites in North and South America that is studying the
current state of carbon balance in terrestrial ecosystems and how that balance is
affected by land use and climate variations. Understanding the future behavior of the
carbon cycle, and the ability of forests to serve as 'sinks' for carbon dioxide are
extremely important in determining the realities of global warming.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues from State Resource Redistribution remained unchanged for the
second year of the biennium. The $384K increase in Government Appropriations is the
result of a timing difference in the draw down of federal funds from the McIntire-Stennis
federal formula funds. $370K of the federal funds that normally would have been
available during the last quarter of fiscal year 2004 was not available from the federal
government until the first quarter of fiscal year 2005.

Revenues from Sales and Services declined $49K from the previous year; declines were
noted in Wood Science/Engineering due to prepayments on research, and Forest
Science Operations.


                                            29
Expenses: Service and Supplies expenses for FRL increased $82K in comparison to
fiscal year 2004. Maintenance and repairs expense increased $39K primarily due to the
remodel of the Forest Engineering Office, Supplies expense increased $39K primarily in
the area of General Operating Supplies, Lab Supplies, Minor and Specialized
equipment.

Net Transfers: During fiscal year 2004 there was a change in the method of Returned
Overhead delivered to the Colleges of Ag and Forestry, because of this change a one-
time transfer was made from Education and General Funds to Forestry of $311K.
Transfer out in Fiscal Year 2005 was to cover conference expenses in Forestry
supported Designated Operating Fund.

Balance Sheet

Assets: Increase in cash of $151K is primarily attributable to cash provided by
Operating Activities of $190K. Decreases in cash were attributable to cash used as
noted in changes in prepaid expenses and accounts payable payments.

Liabilities: Accounts Payable decreased by $17K when compared to the prior year.
Year end Accounts Payable for FRL represents outstanding invoices payable. At fiscal
year end 2004 there were two large outstanding invoices payable to the US Department
of Agriculture – Forest Service. There were not large invoices payable at fiscal year end
2005.




                                           30
                                                                                                     Oregon State University
                                                                                                          Balance Sheet
                                                                                                          Auxiliary Funds
                                                                                                   As of June 30, 2005 and 2004

                                                              Student Cntrs                           Health                            IS WIN     Miscellaneous                                   Increase
                                              Housing          & Activities      Athletics           Services           Parking          NET        Auxiliaries     2005           2004           (Decrease)     % Change
Assets
  Current Assets
      Cash                                      5,537,022          3,731,663        4,564,392          3,866,967             16,949      186,239       1,341,679     19,244,913     18,562,773        682,139       3.67%
      Restricted Cash                           3,400,462          1,507,163        1,079,967            545,268            885,896       30,338         145,519      7,594,613      8,276,233       (681,620)      8.24%
      Bond Proceeds - Debt Service                                                 12,204,802                                                                        12,204,802                    12,204,802
      Accounts Receivable                       2,201,417            841,964          295,673            898,581            118,223       23,305         295,787      4,674,952      4,289,844        385,107       8.98%
      Allowance for Doubtful Accounts            (216,864)           (77,807)          (2,748)           (89,858)           (11,840)         -           (25,660)      (424,777)      (494,469)        69,692      14.09%
      Inventories                                 142,206             20,200              -                  -                  -            -           136,156        298,563        259,058         39,505      15.25%
      Prepaid Expenses and Deferred Charges         8,301              4,713          375,979             22,500                -            -               -          411,493        146,754        264,739     180.40%
      Due From Other Funds                         27,713                -                -                  -                  -            -               -           27,713         35,908         (8,195)     22.82%
    Total Current Assets                       11,100,259          6,027,896       18,518,065          5,243,458          1,009,228      239,883       1,893,482     44,032,271     31,076,101     12,956,170      41.69%

  Non-Current Assets
      Bond Proceeds - Debt Service               3,901,986                  3        3,488,659               -               22,709          -               -        7,413,356      2,316,040      5,097,316     220.09%
      Fixed Assets                              84,937,859         45,851,082       96,129,411         1,646,323         18,943,414          -         2,194,005    249,702,093    180,727,710     68,974,383      38.16%
      Accumulated Depreciation                 (31,065,634)       (17,384,628)     (14,327,580)         (927,892)        (2,204,305)         -        (1,105,660)   (67,015,699)   (62,802,255)    (4,213,443)      6.71%
    Total Non-Current Assets                    57,774,211         28,466,456       85,290,490           718,431         16,761,818          -         1,088,345    190,099,751    120,241,495     69,858,256      58.10%

Total Assets                                   68,874,470         34,494,352      103,808,555          5,961,889         17,771,046      239,883       2,981,827    234,132,022    151,317,596     82,814,426       54.73%


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                          260,258            121,660       12,632,489             73,370              9,754        1,940         79,460      13,178,932      3,609,678      9,569,254     265.10%
        Liability for Compensated Absences        306,530            237,753          447,027            161,088             25,889          -           42,405       1,220,692      1,221,980         (1,288)      0.11%
        Capital Leases Payable                        -                  -            115,981                -                  -            -              -           115,981        170,749        (54,768)     32.08%
        XI-F Short Term Bonds Payable                 -                  -                -                  -                  -            -              -               -        2,368,144     (2,368,144)
        Deposits                                      -               53,643              -                  -                  -            -            1,250          54,893         46,889          8,004      17.07%
        Deferred Revenues                         224,719            494,693        4,026,815            473,424                -            -            9,609       5,229,260      5,300,884        (71,623)      1.35%
        Due to Other Funds                            -                  -                -                  -                  -            -           27,713          27,713         35,908         (8,195)     22.82%
    Total Current Liabilites                      791,508            907,749       17,222,313            707,883             35,643        1,940        160,437      19,827,472     12,754,232      7,073,241      55.46%
                                                      -                                                                                      -
  Non-Current Liabilites                              -                                                                                      -
      XI-F Long Term Bonds Payable             57,153,933            130,364       56,512,046                -            8,636,599          -               -      122,432,941     55,376,118     67,056,823     121.09%

Total Liabilities                              57,945,440          1,038,113       73,734,358            707,883          8,672,241        1,940        160,437     142,260,413     68,130,349     74,130,064      108.81%

     Fund Balance                              10,929,030         33,456,240       30,074,197          5,254,006          9,098,804      237,942       2,821,389     91,871,608     83,187,246      8,684,361       10.44%

     Total Liabilities and Fund Balanc         68,874,470         34,494,352      103,808,555          5,961,889         17,771,046      239,882       2,981,827    234,132,021    151,317,596     82,814,425       54.73%

Working Capital

   Current Assets                              11,100,259          6,027,896       18,518,065          5,243,458          1,009,228      239,883       1,893,482     44,032,271     31,076,101     12,956,170       41.69%
   Less: Current Liabilities                      791,508            907,749       17,222,313            707,883             35,643        1,940         160,437     19,827,472     12,754,232      7,073,241       55.46%

     Working Capital at End of Period          10,308,751          5,120,147        1,295,752          4,535,575            973,585      237,943       1,733,044     24,204,798     18,321,869      5,882,929       32.11%




                                                                                             Unaudited - For Management Purposes Only

                                                                                                                 31
                                                                                                                  Oregon State University
                                                                                                    Statement of Revenues, Expenses, and Other Changes
                                                                                                                      Auxiliary Funds
                                                                                                    For the Twelve Months Ending June 30, 2005 and 2004




                                                                               Student Cntrs                       Health                           IS WIN     Miscellaneous                                    Increase
                                                             Housing            & Activities       Athletics      Services         Parking            Net       Auxiliaries      2005            2004          (Decrease)     % Change
Revenue

      Enrollment Fees                                               -                8,574,141      1,495,296       5,284,326             -              -          138,977    15,492,740       15,782,568       (289,828)        1.84%
      Fee Remissions                                                -                  (21,855)           -           (12,494)            -              -              -         (34,350)         (48,256)        13,906        28.82%
      Government Appropriations                                     -                      -              -               -               -              -              -             -              1,000         (1,000)
      Gifts, Grants, and Contracts                                  -                      -       12,356,301             -               -              -              -      12,356,301       13,158,527       (802,227)        6.10%
      Lottery Proceeds                                              -                      -          577,591             -               -              -              -         577,591          493,313         84,277        17.08%
      Interest Income                                           116,462                143,852        213,401          86,528          23,834            -           16,078       600,154          454,601        145,553        32.02%
      Sales & Services                                       25,015,730              4,296,019     16,788,263       2,766,883       1,826,898        148,589      2,945,850    53,788,232       50,344,311      3,443,920         6.84%
      Other Revenue                                              50,914                 52,467      1,320,039             -               -            1,005          1,984     1,426,409        1,376,295         50,114         3.64%

Total Revenue                                                25,183,105             13,044,624     32,750,890       8,125,242       1,850,732        149,594      3,102,889    84,207,076       81,562,360      2,644,716        3.24%


Expense

      Total Salaries and OPE                                  8,500,331              6,317,020     10,825,643       4,254,614        600,340          78,691        888,818    31,465,456       29,305,978      2,159,478         7.37%
      Service and Supplies                                   10,658,989              5,596,526     13,994,155       2,477,353        358,597          52,321      2,100,005    35,237,947       32,557,355      2,680,592         8.23%
      Bond Interest Expense                                   2,439,790                             1,324,761                        219,433                                    3,983,984        2,502,739      1,481,245        59.18%
      Depreciation                                            2,090,521              1,109,709      1,600,652         60,363         253,939              -          64,836     5,180,021        4,619,719        560,302        12.13%
      Capital Outlay                                                -                      -            3,284            -               -                -             -           3,284              -            3,284
      Student Aid                                                 2,000                    -        6,169,359            -               -                -             -       6,171,359        5,811,167        360,192         6.20%

Total Expense                                                23,691,632             13,023,255     33,917,853       6,792,330       1,432,310        131,012      3,053,659    82,042,050       74,796,957      7,245,093        9.69%

      Net Change From Operations                              1,491,473                  21,369     (1,166,963)     1,332,913        418,422          18,582         49,230      2,165,027       6,765,403      (4,600,377)      68.00%
      General Fund Subsidy                                                                           4,014,641                                                                   4,014,641       3,944,698          69,943        1.77%
      Fixed Asset Disposal Gain/(Loss)                          (13,036)                    -           (7,998)          -                -               -             -          (21,034)        (97,784)         76,750       78.49%
      Net Transfers In/(Out)                                   (508,477)             (1,513,248)        38,050          (810)      (1,004,207)            -          (7,012)    (2,995,704)     (4,289,507)      1,293,804       30.16%

Net Increase (Decrease) in Fund Balance                         969,960              (1,491,879)    2,877,730       1,332,103        (585,784)        18,582         42,218     3,162,930        6,322,810      (3,159,880)      49.98%

Beginning Operations Fund Balance                             9,127,332             34,580,828      27,025,162      3,921,904       4,356,877        219,360      2,859,606     82,091,068       66,114,849     15,976,220       24.16%
     Prior Period Adjustment (1)                                    -                      -               -              -               -              -              -              -        (12,457,097)    12,457,097
     NIP Change in Fixed Assets                               2,676,232                339,163      51,904,245            -        14,377,916            -           17,643     69,315,199       24,047,161     45,268,038      188.25%
     Fund Deductions To Reserves                             (3,676,141)                28,127     (51,964,074)           -        (8,526,352)           -          (98,078)   (64,236,518)             -      (64,236,518)
     Bond Debt Principle/Sinking Fund                        (1,980,768)                            (3,339,156)                      (541,836)                                  (5,861,759)   (2,152,824.69)    (3,708,935)     172.28%

Ending Fund Balance from Operations                           7,116,615             33,456,240     26,503,907       5,254,006       9,080,820        237,942      2,821,389    84,470,920       81,871,708      2,599,210        3.17%

Beginning Plant Fund Balance                                  1,163,039                     -        (690,846)            -          843,345              -             -       1,315,538        1,401,933        (86,395)       6.16%

      Plant Revenues                                          9,374,439                     -          838,779            -                58             -             -       10,213,276      18,406,345      (8,193,069)      44.51%
      Plant Expenditures                                     (4,411,369)                    -         (142,976)           -           (56,769)            -             -       (4,611,115)     (1,906,236)     (2,704,878)     141.90%
      CIP Expenditures Pending Capitalization                (2,313,695)                    -      (49,309,667)           -        (6,737,607)            -             -      (58,360,968)    (18,415,975)    (39,944,994)     216.90%
      Net Transfers in/(Out)                                        -                       -       52,875,000            -         5,968,957             -             -       58,843,957       1,829,471      57,014,486     3116.45%

Net Increase (Decrease) in Plant Fund Balance                 2,649,375                     -       4,261,136             -          (825,361)            -             -       6,085,150          (86,395)     6,171,545      7143.43%

Ending Plant Fund Balance                                     3,812,415                     -       3,570,289             -           17,984              -             -       7,400,688        1,315,538      6,085,150       462.56%

Total Operations & Plant Fund Balance                        10,929,030             33,456,240     30,074,197       5,254,006       9,098,804        237,942      2,821,389    91,871,608       83,187,246      8,684,359        10.44%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                                                                                         Unaudited - For Management Purposes Only

                                                                                                                              32
                                                   Oregon State University
                                                        Balance Sheet
                                                  Auxiliary Funds - Housing
                                                 As of June 30, 2005 and 2004

                                                                                             Increase
                                                       2005                 2004            (Decrease)      % Change
Assets
  Current Assets
      Cash                                              5,537,022            4,808,802           728,220      15.14%
      Restricted Cash                                   3,400,462            3,361,826            38,636       1.15%
      Accounts Receivable                               2,201,417            1,926,476           274,941      14.27%
      Allowance for Doubtful Accounts                    (216,864)            (227,346)           10,483       4.61%
      Inventories                                         142,206              114,382            27,825      24.33%
      Prepaid Expenses and Deferred Charges                 8,301               76,601           (68,300)     89.16%
      Due From Other Funds                                 27,713               35,908            (8,195)     22.82%
    Total Current Assets                               11,100,259           10,096,649         1,003,610       9.94%

  Non-Current Assets
      Bond Proceeds - Debt Service                       3,901,986           2,315,931         1,586,055      68.48%
      Fixed Assets                                      84,937,859          82,730,413         2,207,446       2.67%
      Accumulated Depreciation                         (31,065,634)        (29,527,778)       (1,537,856)      5.21%
    Total Non-Current Assets                            57,774,211          55,518,566         2,255,645       4.06%

Total Assets                                           68,874,470           65,615,215         3,259,255       4.97%


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                                  260,258               1,886,141     (1,625,883)     86.20%
        Liability for Compensated Absences                306,530                 298,369          8,161       2.74%
        Capital Leases Payable                                -                       -              -
        XI-F Short Term Bonds Payable                         -                 1,870,216     (1,870,216)
        Deposits                                              -                       -              -
        Deferred Revenues                                 224,719                 211,369         13,350       6.32%
        Due to Other Funds                                    -                       -              -
    Total Current Liabilites                              791,508               4,266,096     (3,474,588)     81.45%

  Non-Current Liabilites
      XI-F Long Term Bonds Payable                     57,153,933           51,058,748         6,095,184      11.94%

Total Liabilities                                      57,945,440           55,324,844         2,620,597       4.74%

     Fund Balance                                      10,929,030           10,290,371           638,659       6.21%

     Total Liabilities and Fund Balance                68,874,470           65,615,215         3,259,255       4.97%

Working Capital

   Current Assets                                       11,100,259          10,096,649         1,003,610       9.94%
   Less: Current Liabilities                               791,508           4,266,096        (3,474,588)     81.45%

     Working Capital at End of Period                   10,308,751              5,830,553      4,478,198      76.81%




                                             Unaudited - For Management Purposes Only

                                                                33
                                                               Oregon State University
                                                Statement of Revenues, Expenses, and Other Changes
                                                              Auxiliary Funds - Housing
                                                For the Twelve Months Ending June 30, 2005 and 2004



                                                                                                                              Increase
                                                                         2005                       2004 (1)                 (Decrease)           % Change
Revenue

       Enrollment Fees                                                           -                           -                             -
       Fee Remissions                                                            -                           -                             -
       Government Appropriations                                                 -                         1,000                           -
       Gifts, Grants, and Contracts                                              -                     1,973,500                    (1,973,500)
       Lottery Proceeds                                                          -                           -                             -
       Interest Income                                                       116,462                      81,019                        35,443       43.75%
       Sales & Services                                                   25,015,730                  22,537,109                     2,478,621       11.00%
       Other Revenue                                                          50,914                      21,938                        28,976      132.08%

Total Revenue                                                             25,183,105                  24,614,565                      568,540         2.31%


Expense

       Total Salaries and OPE                                              8,500,331                   7,935,091                      565,240         7.12%
       Service and Supplies                                               10,658,989                  10,296,674                      362,315         3.52%
       Bond Interest Expense                                               2,439,790                   2,225,705                                      0.00%
       Depreciation                                                        2,090,521                   1,975,995                      114,526         5.80%
       Capital Outlay                                                            -                           -                            -
       Student Aid                                                             2,000                       1,250                          750        60.00%

Total Expense                                                             23,691,632                  22,434,716                     1,256,915        5.60%

       Net Change From Operations                                          1,491,473                    2,179,849                     (688,376)      31.58%
       Fixed Asset Disposal Gain/(Loss)                                      (13,036)                         -                        (13,036)
       Net Transfers In/(Out)                                               (508,477)                  (1,322,626)                     814,149       61.56%

Net Increase (Decrease) in Fund Balance                                      969,960                      857,223                     112,737        13.15%

Beginning Operations Fund Balance                                          9,127,332                   10,140,075                (1,012,743)          9.99%
     Prior Period Adjustment (2)                                                 -                    (12,704,647)               12,704,647
     NIP Change in Fixed Assets                                            2,676,232                   12,776,822               (10,100,590)         79.05%
     Fund Additions/Deductions                                            (3,676,141)                         -                         -
     Bond Debt Principle/Sinking Fund                                     (1,980,768)                  (1,942,141)                  (38,627)          1.99%

Ending Fund Balance from Operations                                        7,116,615                    9,127,331                   (2,010,717)      22.03%

Beginning Plant Fund Balance                                               1,163,039                    1,322,822                     (159,782)      12.08%

       Plant Revenues - Bonds                                              6,937,399                  12,927,000                    (5,989,601)      46.33%
       Plant Revenues - Gifts                                              2,437,040
       Plant Expenditures                                                 (4,411,369)                  (1,007,461)                  (3,403,908)     337.87%
       CIP Expenditures Pending Capitalization                            (2,313,695)                 (12,776,822)                  10,463,127       81.89%
       Net Transfers in/(Out)                                                      -                      697,500                     (697,500)

Net Increase (Decrease) in Plant Fund Balance                              2,649,375                     (159,782)                    372,118       232.89%

Ending Plant Fund Balance                                                  3,812,415                    1,163,039                    2,649,375      227.80%

Total Operations & Plant Fund Balance                                     10,929,030                  10,290,371                      638,659         6.21%

Notes:

(1) Fiscal Year 2004 is revised to reflect the addition of Unexpended Plant Funds not included in the fiscal year end 2004 report
(2) This adjustment was made to adjust fixed assets as part of GASB 34/35 Implementation and Compensated Absence Liability




                                                          Unaudited - For Management Purposes Only

                                                                                    34
                                          Oregon State University
                                    Auxiliary Operating Funds - Housing
                                              Fiscal Year 2005




                                                     Initial                          Favorable          %
                                                    Budget            Actual        (Unfavorable)     Variance
Revenue

        Gifts, Grants & Contracts                          -                                  -              -
        Interest Income                                    100             2,292            2,192        2192.0%
        Sales & Services                            22,271,287        23,174,340          903,053           4.1%
        Other Revenue                                      -              50,914           50,914            -
        Internal Sales                               1,790,820         1,841,390           50,570           2.8%

Total                                               24,062,207        25,068,936        1,006,729           4.2%



Expense

        Total Salaries and OPE                       8,875,692         8,500,331          375,361           4.2%
        Service and Supplies                        10,504,412        10,658,571         (154,159)         -1.5%
        Depreciation                                 1,999,354         2,090,294          (90,940)         -4.5%

Total                                               21,379,458        21,249,196          130,262           0.6%

        Net Change From Operations                   2,682,749         3,819,740        1,136,991          42.4%
        Loss on Disposal of Asset                          -             (13,036)         (13,036)
        Net Transfers In/(Out)                      (5,074,871)       (4,768,136)         306,735           6.0%

Net Increase (Decrease) in Fund Balance             (2,392,122)         (961,432)       1,430,690          59.8%

Beg Fund Balance (excluding Plant Funds)             5,774,807         5,774,807               -             -
     NIP Change in Fixed Assets                            -           2,676,232         2,676,232
     Fund Deductions for Bonded Debt                       -          (3,676,142)       (3,676,142)
     Fund Deductions to Reserves                           -             (54,153)          (54,153)

End Fund Balance (excluding Plant Funds)        $    3,382,685    $    3,759,312    $     376,627          11.1%




                                     Unaudited - For Management Purposes Only

                                                         35
                                                  Oregon State University
                                                      Balance Sheet
                                       Auxiliary Funds - Student Centers & Activities
                                               As of June 30, 2005 and 2004

                                                                                             Increase
                                                        2005                  2004          (Decrease)     % Change
Assets
  Current Assets
       Cash                                               3,731,663            4,098,649      (366,985)        8.95%
       Restricted Cash                                    1,507,163            1,624,727      (117,564)        7.24%
       Accounts Receivable                                  841,964              833,978         7,986         0.96%
       Allowance for Doubtful Accounts                      (77,807)            (100,132)       22,325        22.30%
       Inventories                                           20,200               18,539         1,661         8.96%
       Prepaid Expenses and Deferred Charges                  4,713               18,184       (13,472)       74.08%
       Due From Other Funds                                     -                    -             -
     Total Current Assets                                 6,027,896            6,493,945      (466,049)        7.18%

   Non-Current Assets
        Bond Proceeds - Debt Service                              3                  108           (106)      97.56%
        Fixed Assets                                     45,851,082           45,457,377        393,705        0.87%
        Accumulated Depreciation                        (17,384,628)         (16,237,927)    (1,146,701)       7.06%
     Total Non-Current Assets                            28,466,456           29,219,558       (753,102)       2.58%

Total Assets                                            34,494,352            35,713,504     (1,219,151)       3.41%


Liabilities and Fund Balance
   Current Liabilities
          Accounts Payable                                 121,660               243,424      (121,764)       50.02%
          Liability for Compensated Absences               237,753               214,729        23,024        10.72%
          Capital Leases Payable                               -                     -             -
          XI-F Short Term Bonds Payable                        -                  16,471       (16,471)
          Deposits                                          53,643                45,739         7,904        17.28%
          Deferred Revenues                                494,693               470,720        23,973         5.09%
          Due to Other Funds                                   -                     -             -
       Total Current Liabilites                            907,749               991,083       (83,334)        8.41%

   Non-Current Liabilites
        XI-F Long Term Bonds Payable                       130,364               141,593       (11,229)       7.93%

Total Liabilities                                         1,038,113            1,132,676       (94,563)        8.35%

      Fund Balance                                      33,456,240            34,580,828     (1,124,588)       3.25%

      Total Liabilities and Fund Balance                34,494,352            35,713,504     (1,219,151)       3.41%

Working Capital

    Current Assets                                        6,027,896            6,493,945      (466,049)        7.18%
    Less: Current Liabilities                               907,749              991,083       (83,334)        8.41%

       Working Capital at End of Period                   5,120,147            5,502,862      (382,715)        6.95%




                                           Unaudited - For Management Purposes Only

                                                               36
                                                         Oregon State University
                                          Statement of Revenues, Expenses, and Other Changes
                                              Auxiliary Funds - Student Centers & Activities
                                          For the Twelve Months Ending June 30, 2005 and 2004




                                                                                                             Increase
                                                                       2005                   2004          (Decrease)    % Change
Revenue

       Enrollment Fees                                                   8,574,141             8,960,733      (386,592)      4.31%
       Fee Remissions                                                      (21,855)              (30,008)        8,152      27.17%
       Government Appropriations                                               -                     -             -
       Gifts, Grants, and Contracts                                            -                     -             -
       Lottery Proceeds                                                        -                     -             -
       Interest Income                                                     143,852               105,716        38,136      36.07%
       Sales & Services                                                  4,296,019             3,501,128       794,891      22.70%
       Other Revenue                                                        52,467                57,003        (4,536)      7.96%

Total Revenue                                                          13,044,624             12,594,573       450,051       3.57%


Expense

       Total Salaries and OPE                                            6,317,020             5,339,129       977,892      18.32%
       Service and Supplies                                              5,596,526             4,951,174       645,353      13.03%
       Depreciation                                                      1,109,709               673,350       436,359      64.80%
       Capital Outlay                                                          -                     -             -
       Student Aid                                                             -                     -             -

Total Expense                                                          13,023,255             10,963,652     2,059,603      18.79%

       Net Change From Operations                                           21,369             1,630,921    (1,609,552)     98.69%
       Fixed Asset Disposal Gain/(Loss)                                        -                 (26,502)       26,502
       Net Transfers In/(Out)                                           (1,513,248)           (1,584,827)       71,580       4.52%

Net Increase (Decrease) in Fund Balance                                 (1,491,879)              19,591     (1,511,470)   7714.93%

Beginning Operations Fund Balance                                      34,580,828             30,196,384     4,384,444      14.52%
     Prior Period Adjustment (1)                                              -                      -
     NIP Change in Fixed Assets                                           339,163              4,364,854    (4,025,691)     92.23%
     Fund Additions/Deductions                                             28,127                    -          28,127

Ending Fund Balance from Operations                                    33,456,240             34,580,830    (1,124,590)      3.25%

Beginning Plant Fund Balance                                                       -                   -

       Plant Revenues                                                              -                   -
       Plant Expenditures                                                          -                   -
       CIP Expenditures Pending Capitalization                                     -                   -
       Net Transfers in/(Out)                                                      -                   -

Net Increase (Decrease) in Plant Fund Balance                                      -                   -

Ending Plant Fund Balance                                                          -                   -

Total Operations & Plant Fund Balance                                  33,456,240             34,580,830    (1,124,590)      3.25%
Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.


(2) Student Center operations consist of the following:
       Memorial Union                                       ASOSU Child Care
       Educational Activities                               MU Retail Food Services
       Recreational Sports                                  MU Mail Boxes


(3) $312,952.00 increase in ending fund balance for FY04 is from change in accounting
  for CIP ($312,950.00 Fund 110113) between FY04 and FY05 and rounding difference of $2.00.




                                               Unaudited - For Management Purposes Only

                                                                       37
                                           Oregon State University
                           Auxiliary Operating Funds - Student Centers & Activities
                                               Fiscal Year 2005




                                                       Initial                          Favorable         %
                                                      Budget            Actual        (Unfavorable)    Variance
Revenue

        Enrollment Fees                           $    8,946,300    $    8,552,286    $    (394,014)        -4.4%
        Interest Income                                   16,900           113,027           96,127        568.8%
        Sales & Services                               4,087,760         3,645,012         (442,748)       -10.8%
        Other Revenue                                        500            52,467           51,967      10393.4%
        Internal Sales                                   168,260           651,007          482,747        286.9%

Total                                                 13,219,720        13,013,799         (205,921)         -1.6%



Expense

        Total Salaries and OPE                         6,480,949         6,317,020          163,929           2.5%
        Service and Supplies                           5,048,055         5,169,543         (121,488)         -2.4%
        Depreciation                                   1,076,724         1,109,709          (32,985)         -3.1%

Total                                                 12,605,728        12,596,272            9,456          0.1%

        Net Change From Operations                       613,992           417,527         (196,465)        -32.0%
        Net Transfers In/(Out)                        (1,534,310)       (1,513,086)          21,224           1.4%

Net Increase (Decrease) in Fund Balance                 (920,318)       (1,095,559)        (175,241)        -19.0%

Beg Fund Balance (excluding Plant Funds)              32,958,812        32,958,812              -                 -
     NIP Change in Fixed Assets                              -             339,164          339,164
     Fund Deductions for Bonded Debt                         -              28,127           28,127
     Fund Deductions to Reserves                             -            (281,470)        (281,470)

End Fund Balance (excluding Plant Funds           $ 32,038,494      $   31,949,074    $     (89,420)         -0.3%




                                       Unaudited - For Management Purposes Only

                                                           38
                                                               Oregon State University
                                                                    Balance Sheet
                                                              Auxiliary Funds - Athletics
                                                             As of June 30, 2005 and 2004

                                                                                                                           Increase
                                                                       2005                      2004 (1)                 (Decrease)       % Change
Assets
  Current Assets
       Cash                                                              4,564,392                  4,952,504                  (388,112)      7.84%
       Restricted Cash                                                   1,079,967                    666,315                   413,652      62.08%
       Bond Proceeds - Debt Service                                     12,204,802
       Accounts Receivable                                                 295,673                    224,975                    70,698       31.42%
       Allowance for Doubtful Accounts                                      (2,748)                      (350)                   (2,399)     686.32%
       Inventories                                                             -                            -                       -
       Prepaid Expenses and Deferred Charges                               375,979                     51,968                   324,011      623.48%
       Due From Other Funds                                                    -                            -                       -
     Total Current Assets                                               18,518,065                  5,895,413                12,622,652      214.11%

   Non-Current Assets
        Bond Proceeds - Debt Service                                     3,488,659                          -                       -            -
        Fixed Assets                                                    96,129,411                 44,232,051                51,897,360      117.33%
        Accumulated Depreciation                                       (14,327,580)               (13,238,390)               (1,089,190)       8.23%
     Total Non-Current Assets                                           85,290,490                 30,993,661                54,296,829      175.19%

Total Assets                                                          103,808,555                  36,889,075                66,919,480      181.41%


Liabilities and Fund Balance
   Current Liabilities
          Accounts Payable                                              12,632,489                  1,191,364                11,441,125      960.34%
          Liability for Compensated Absences                               447,027                    491,923                   (44,896)       9.13%
          Capital Leases Payable                                           115,981                    170,749                   (54,768)      32.08%
          XI-F Short Term Bonds Payable                                        -                      472,562                  (472,562)
          Deposits                                                             -                            -                       -
          Deferred Revenues                                              4,026,815                  4,152,751                  (125,936)      3.03%
          Due to Other Funds                                                   -                            -                       -
       Total Current Liabilites                                         17,222,313                  6,479,350                10,742,963      165.80%

   Non-Current Liabilites
        XI-F Long Term Bonds Payable                                    56,512,046                  4,075,409                52,436,637     1286.66%

Total Liabilities                                                       73,734,358                 10,554,759                63,179,599      598.59%

        Fund Balance                                                    30,074,197                 26,334,316                 3,739,881       14.20%

        Total Liabilities and Fund Balance                            103,808,555                  36,889,075                66,919,480      181.41%

Working Capital

    Current Assets                                                      18,518,065                  5,895,413                12,622,652      214.11%
    Less: Current Liabilities                                           17,222,313                  6,479,350                10,742,963      165.80%

        Working Capital at End of Period                                  1,295,752                   (583,937)               1,879,689      321.90%
Note:
(1) Fiscal Year 2004 is revised to reflect the addition of Unexpended Plant Funds not included in the fiscal year end 2004 report




                                                   Unaudited - For Management Purposes Only

                                                                              39
                                                       Oregon State University
                                        Statement of Revenues, Expenses, and Other Changes
                                                      Auxiliary Funds - Athletics
                                        For the Twelve Months Ending June 30, 2005 and 2004




                                                                                                                  Increase
                                                                    2005                   2004 (1)              (Decrease)         % Change
Revenue

       Enrollment Fees                                             1,495,296                  1,566,965               (71,669)          4.57%
       Fee Remissions                                                    -                          -                     -
       Government Appropriations                                         -                          -                     -
       Gifts, Grants, and Contracts                               12,356,301                 11,185,027             1,171,273          10.47%
       Lottery Proceeds                                              577,591                    493,313                84,277          17.08%
       Interest Income                                               213,401                    199,823                13,578           6.80%
       Sales & Services                                           16,788,263                 17,040,863              (252,600)          1.48%
       Other Revenue                                               1,320,039                  1,285,590                34,449           2.68%

Total Revenue                                                     32,750,890                 31,771,581                979,309          3.08%


Expense

       Total Salaries and OPE                                     10,825,643                 10,546,141               279,502           2.65%
       Service and Supplies                                       13,994,155                 12,411,231             1,582,924          12.75%
       Bond Interest Expense                                       1,324,761                    275,490             1,049,271         380.87%
       Depreciation                                                1,600,652                  1,616,444               (15,791)          0.98%
       Capital Outlay                                                  3,284                        -                   3,284
       Student Aid                                                 6,169,359                  5,809,917               359,442           6.19%

Total Expense                                                     33,917,853                 30,659,222             3,258,631          10.63%

       Net Change From Operations                                 (1,166,963)                 1,112,359            (2,279,322)        204.91%
       General Fund Subsidy                                        4,014,641                  3,944,698                69,943           1.77%
       Fixed Asset Disposal Gain/(Loss)                               (7,998)                     5,500                   -             0.00%
       Net Transfers In/(Out)                                         38,050                   (131,972)              170,022         128.83%

Net Increase (Decrease) in Fund Balance
         from Operations (1)                                       2,877,730                  4,930,586            (2,052,856)         41.64%

Beginning Operations Fund Balance                                 27,025,162                 15,992,604            11,032,558          68.99%
     Prior Period Adjustments                                            -                      247,550              (247,550)
     NIP Change in Fixed Assets                                   51,904,245                  6,056,513            45,847,732
     Fund Deductions (2)                                         (51,964,074)                                             -
     Bond Debt Principle/Sinking Fund                             (3,339,156)                   (202,091)

Ending Fund Balance from Operations                               26,503,907                 27,025,162               (521,255)         1.93%

Beginning Plant Fund Balance                                        (690,846)                   (209,711)             (481,135)       229.43%

       Plant Revenues                                                838,779                   5,478,852           (4,640,072)         84.69%
       Plant Expenditures                                           (142,976)                   (810,174)             667,198          82.35%
       CIP Expenditures Pending Capitalization                   (49,309,667)                 (5,229,813)         (44,079,855)        842.86%
       Net Transfers in/(Out)                                     52,875,000                      80,000           52,795,000       65993.75%

Net Increase (Decrease) in Plant Fund Balance                      4,261,136                    (481,135)           4,742,271         985.64%

Ending Plant Fund Balance                                          3,570,289                    (690,846)           4,261,136         616.80%

Total Operations & Plant Fund Balance                             30,074,197                 26,334,316             3,739,881          14.20%

Notes:
(1) Fiscal Year 2004 is revised to reflect the addition of Unexpended Plant Funds not included in the fiscal year end 2004 report


                                                  Unaudited - For Management Purposes Only

                                                                            40
                                            Oregon State University
                                     Auxiliary Operating Funds - Athletics
                                                Fiscal Year 2005




                                                  Initial                                 Favorable           %
                                                 Budget              Actual             (Unfavorable)      Variance
Revenue
     Enrollment Fees                        $      1,381,838     $     1,533,346    $           151,508         11.0%
     Gifts, Grants, and Contracts                  6,198,675              72,430             (6,126,245)       -98.8%
     Lottery Proceeds                                600,000             577,591                (22,409)        -3.7%
     Interest Income                                  35,574             202,216                166,642        468.4%
     Sales & Services                             15,928,500          16,777,983                849,483          5.3%
     Other Revenue                                   713,500             801,797                 88,297         12.4%

Total                                             24,858,087          19,965,363             (4,892,724)        -19.7%



Expense

        Total Salaries and OPE                    11,075,622           6,914,030              4,161,592          37.6%
        Service and Supplies                       9,703,776          11,908,160             (2,204,384)        -22.7%
        Student Aid                                6,650,317             749,332              5,900,985          88.7%
        Depreciation                               1,600,000           1,600,652                   (652)          0.0%

Total                                             29,029,715          21,172,174             7,857,541          27.1%

        Net Change From Operations                 (4,171,628)        (1,206,811)            2,964,817          71.1%
        Loss on Disposal of Asset                                         (7,998)

Net Increase (Decrease) in Fund Balance            (4,171,628)        (1,214,809)

Beg Fund Balance (excluding Plant Funds)          26,532,458          26,532,458                   -              -
     NIP Change in Fixed Assets                                       51,904,245           (51,904,245)
     Fund Deductions for Bonded Debt                                 (51,964,074)           51,964,074

End Fund Balance (excluding Plant Funds     $     18,189,202     $    25,257,820    $        3,024,646          16.6%




                                     Unaudited - For Management Purposes Only

                                                        41
                                                 Oregon State University
                                                       Balance Sheet
                                             Auxiliary Funds - Health Services
                                               As of June 30 2005 and 2004

                                                                                            Increase
                                                       2005                  2004          (Decrease)     % Change
Assets
  Current Assets
       Cash                                             3,866,967            2,848,534       1,018,434      35.75%
       Restricted Cash                                    545,268              264,498         280,770     106.15%
       Accounts Receivable                                898,581              899,582          (1,001)      0.11%
       Allowance for Doubtful Accounts                    (89,858)            (116,946)         27,088      23.16%
       Inventories                                            -                    -               -
       Prepaid Expenses and Deferred Charges               22,500                  -            22,500
       Due From Other Funds                                   -                    -               -
    Total Current Assets                                5,243,458            3,895,668       1,347,790      34.60%

  Non-Current Assets
      Bond Proceeds - Debt Service                            -                    -               -
      Fixed Assets                                      1,646,323            1,646,323             -         0.00%
      Accumulated Depreciation                           (927,892)            (867,529)        (60,363)      6.96%
    Total Non-Current Assets                              718,431              778,794         (60,363)      7.75%

Total Assets                                            5,961,889            4,674,462       1,287,428      27.54%


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                                  73,370                 146,521       (73,151)     49.93%
        Liability for Compensated Absences               161,088                 164,978        (3,890)      2.36%
        Capital Leases Payable                               -                       -             -
        XI-F Short Term Bonds Payable                        -                       -             -
        Deposits                                             -                       -             -
        Deferred Revenues                                473,424                 441,059           -         0.00%
        Due to Other Funds                                   -                       -             -
     Total Current Liabilites                            707,883                 752,558       (44,675)      5.94%

  Non-Current Liabilites
      XI-F Long Term Bonds Payable                             -                     -             -           -

Total Liabilities                                        707,883                 752,558       (44,675)      5.94%

     Fund Balance                                       5,254,006            3,921,904       1,332,103      33.97%

     Total Liabilities and Fund Balance                 5,961,889            4,674,462       1,287,428      27.54%

Working Capital

   Current Assets                                       5,243,458            3,895,668       1,347,790      34.60%
   Less: Current Liabilities                              707,883              752,558         (44,675)      5.94%

     Working Capital at End of Period                   4,535,575            3,143,110       1,392,466      44.30%




                                      Unaudited - For Management Purposes Only

                                                              42
                                                        Oregon State University
                                         Statement of Revenues, Expenses, and Other Changes
                                                   Auxiliary Funds - Health Services
                                         For the Twelve Months Ending June 30, 2005 and 2004


                                                                                                             Increase
                                                                     2005                    2004           (Decrease)     % Change
Revenue

       Enrollment Fees                                                5,284,326              5,135,466          148,860       2.90%
       Fee Remissions                                                   (12,494)               (18,248)           5,754      31.53%
       Government Appropriations                                            -                      -                -
       Gifts, Grants, and Contracts                                         -                      -                -
       Lottery Proceeds                                                     -                      -                -
       Interest Income                                                   86,528                 37,117           49,411     133.12%
       Sales & Services                                               2,766,883              2,894,050         (127,166)      4.39%
       Other Revenue                                                        -                    5,250           (5,250)

Total Revenue                                                         8,125,242              8,053,635           71,608       0.89%


Expense

       Total Salaries and OPE                                         4,254,614              4,047,629          206,985       5.11%
       Service and Supplies                                           2,477,353              2,810,144         (332,791)     11.84%
       Depreciation                                                      60,363                 65,912           (5,549)      8.42%
       Capital Outlay                                                       -                      -                -
       Student Aid                                                          -                      -                -

Total Expense                                                         6,792,330              6,923,685         (131,356)      1.90%

       Net Change From Operations                                     1,332,913              1,129,950          202,963      17.96%
       Fixed Asset Disposal Gain/(Loss)                                     -                      -                -
       Net Transfers In/(Out)                                              (810)              (250,080)             -           -

Net Increase (Decrease) in Fund Balance                               1,332,103                879,869          452,233      51.40%

Beginning Operations Fund Balance                                     3,921,904              3,042,034          879,869      28.92%
     Prior Period Adjustments (1)                                           -                                       -
     NIP Change in Fixed Assets                                             -                       -               -
     Fund Additions/Deductions                                              -                       -               -

Ending Fund Balance from Operations                                   5,254,006              3,921,904        1,332,103      33.97%

Beginning Plant Fund Balance                                                  -                     -               -

       Plant Revenues                                                             -                     -           -
       Plant Expenditures                                                     -                     -               -
       CIP Expenditures Pending Capitalization                                -                     -               -
       Net Transfers in/(Out)                                                 -                     -               -

Net Increase (Decrease) in Plant Fund Balance                                 -                     -               -

Ending Plant Fund Balance                                                     -                     -               -

Total Operations & Plant Fund Balance                                 5,254,006              3,921,904        1,332,103      33.97%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.


(2) Health Services' operations consists of the following:
       Student Health Services                           Counseling and Psych Health Svcs.
       Student Health Services Major Project Fund            Associated Reserves


                                                Unaudited - For Management Purposes Only

                                                                         43
                                           Oregon State University
                             Auxiliary Operating Funds - Student Health Services
                                               Fiscal Year 2005




                                                       Initial                         Favorable         %
                                                      Budget            Actual       (Unfavorable)    Variance
Revenue

        Enrollment Fees                           $    5,253,145    $   5,271,832    $      18,687          0.4%
        Interest Income                                   18,000           80,758           62,758        348.7%
        Sales & Services                               2,855,968        2,725,584         (130,384)        -4.6%
        Other Revenue                                     12,480            2,276          (10,204)       -81.8%
        Internal Sales                                       -             39,023           39,023           -

Total                                                  8,139,593        8,119,473          (20,120)         -0.2%



Expense

        Total Salaries and OPE                         4,566,953        4,254,614          312,339          6.8%
        Service and Supplies                           3,053,656        2,477,353          576,303         18.9%
        Depreciation                                     126,981           60,363           66,618         52.5%

Total                                                  7,747,590        6,792,330          955,260         12.3%

        Net Change From Operations                       392,003        1,327,143          935,140        238.6%
        Net Transfers In/(Out)                          (295,000)        (275,810)          19,190           -

Net Increase (Decrease) in Fund Balance                   97,003        1,051,333          954,330        983.8%

Beg Fund Balance (excluding Plant Funds)               3,657,406        3,657,406              -             -

End Fund Balance (excluding Plant Funds           $    3,754,409    $   4,708,739    $     954,330         25.4%




                                      Unaudited - For Management Purposes Only

                                                          44
                                                   Oregon State University
                                                        Balance Sheet
                                                  Auxiliary Funds - Parking
                                                 As of June 30, 2005 and 2004

                                                                                           Increase
                                                      2005                 2004           (Decrease)      % Change
Assets
  Current Assets
       Cash                                               16,949             435,552          (418,603)       96.11%
       Restricted Cash                                   885,896           2,221,903        (1,336,007)       60.13%
       Accounts Receivable                               118,223             145,617           (27,394)       18.81%
       Allowance for Doubtful Accounts                   (11,840)            (18,919)            7,078        37.41%
       Inventories                                           -                   -                 -
       Prepaid Expenses and Deferred Charges                 -                   -                 -
       Due From Other Funds                                  -                   -                 -
    Total Current Assets                               1,009,228           2,784,154        (1,774,926)       63.75%

  Non-Current Assets
      Bond Proceeds - Debt Service                        22,709                   1            22,708    2911262.82%
      Fixed Assets                                    18,943,414           4,551,128        14,392,286        316.24%
      Accumulated Depreciation                        (2,204,305)         (1,950,366)         (253,939)        13.02%
    Total Non-Current Assets                          16,761,818           2,600,763        14,161,054        544.50%

Total Assets                                          17,771,046           5,384,917        12,386,128       230.02%


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                                   9,754                 49,366        (39,612)       80.24%
        Liability for Compensated Absences                25,889                 26,067           (178)        0.68%
        Capital Leases Payable                               -                      -              -
        XI-F Short Term Bonds Payable                        -                    8,894         (8,894)
        Deposits                                             -                      -              -
        Deferred Revenues                                    -                      -              -
        Due to Other Funds                                   -                      -              -
     Total Current Liabilites                             35,643                 84,327        (48,684)       57.73%

  Non-Current Liabilites
      XI-F Long Term Bonds Payable                     8,636,599                100,368      8,536,231      8504.93%

Total Liabilities                                      8,672,241                184,695      8,487,547      4595.45%

     Fund Balance                                      9,098,804           5,200,223         3,898,582        74.97%

     Total Liabilities and Fund Balance               17,771,046           5,384,917        12,386,128       230.02%

Working Capital

   Current Assets                                      1,009,228           2,784,154        (1,774,926)       63.75%
   Less: Current Liabilities                              35,643              84,327           (48,684)       57.73%

     Working Capital at End of Period                   973,585            2,699,827        (1,726,242)       63.94%




                                          Unaudited - For Management Purposes Only

                                                             45
                                                    Oregon State University
                                     Statement of Revenues, Expenses, and Other Changes
                                                   Auxiliary Funds - Parking
                                     For the Twelve Months Ending June 30, 2005 and 2004


                                                                                                        Increase
                                                                 2005                    2004          (Decrease)    % Change
Revenue

       Enrollment Fees                                               -                         -              -
       Fee Remissions                                                -                         -              -
       Government Appropriations                                     -                         -              -
       Gifts, Grants, and Contracts                                  -                         -              -
       Lottery Proceeds                                              -                         -              -
       Interest Income                                            23,834                    21,422          2,412       11.26%
       Sales & Services                                        1,826,898                 1,830,391         (3,493)       0.19%
       Other Revenue                                                 -                         -              -

Total Revenue                                                  1,850,732                 1,851,813         (1,081)       0.06%


Expense

       Total Salaries and OPE                                    600,340                   566,552         33,787        5.96%
       Service and Supplies                                      358,597                   444,674        (86,077)      19.36%
       Bond Interest Expense                                     219,433                     1,543
       Depreciation                                              253,939                   228,763         25,177       11.01%
       Capital Outlay                                                -                         -              -
       Student Aid                                                   -                         -              -

Total Expense                                                  1,432,310                 1,241,532        190,777       15.37%

       Net Change From Operations                                418,422                    610,281      (191,858)      31.44%
       Fixed Asset Disposal Gain/(Loss)                              -                      (76,782)       76,782
       Net Transfers In/(Out)                                 (1,004,207)                (1,000,003)       (4,204)       0.42%

Net Increase (Decrease) in Fund Balance                         (585,784)                 (466,504)      (119,281)      25.57%

Beginning Operations Fund Balance                              4,356,877                 4,056,860        300,017        7.40%
     Prior Period Adjustments (1)                                    -                                        -
     NIP Change in Fixed Assets                               14,377,916                    775,113    13,602,802     1754.94%
     Fund Additions/Deductions                                (8,526,352)                       -      (8,526,352)
     Bond Debt Principle/Sinking Fund                           (541,836)                 (8,592.66)     (533,243)    6205.80%

Ending Fund Balance from Operations                            9,080,820                 4,356,877         50,538        1.16%

Beginning Plant Fund Balance                                     843,345                   288,822        554,523      191.99%

       Plant Revenues                                                 58                       494           (436)      88.26%
       Plant Expenditures                                        (56,769)                  (88,602)        31,832       35.93%
       CIP Expenditures Pending Capitalization                (6,737,607)                 (409,340)    (6,328,267)    1545.97%
       Net Transfers in/(Out)                                  5,968,957                 1,051,971      4,916,986      467.41%

Net Increase (Decrease) in Plant Fund Balance                   (825,361)                  554,523     (1,379,884)     248.84%

Ending Plant Fund Balance                                          17,984                  843,345       (825,361)      97.87%

Total Operations & Plant Fund Balance                          9,098,804                 5,200,223      3,898,582       74.97%
Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.



                                           Unaudited - For Management Purposes Only

                                                                     46
                                       Oregon State University
                                 Auxiliary Operating Funds - Parking
                                           Fiscal Year 2005




                                                     Initial                       Favorable          %
                                                    Budget          Actual       (Unfavorable)     Variance
Revenue
    Sales & Services                            $   1,787,500     $ 1,678,711          (108,789)              -
    Internal Sales                                     39,220         148,187           108,967               -

Total                                               1,826,720       1,826,898              178                -



Expense

    Total Salaries and OPE                            572,621        600,340            (27,719)        -4.8%
    Service and Supplies                              408,506        358,097             50,409         12.3%
    Depreciation                                      238,500        253,939            (15,439)            -

Total                                               1,219,627       1,212,376             7,251               -

    Net Change From Operations                         607,093        614,522             7,429               -
    Net Transfers In/(Out)                          (1,192,420)    (1,288,132)          (95,712)              -

Net Increase (Decrease) in Fund Balance              (585,327)       (673,610)          (88,283)              -

Beg Fund Balance (excluding Plant Funds)            3,012,246       3,012,246                 -               -
    NIP Change in Fixed Assets                              -      14,377,916        14,377,916
    Fund Deductions for Bonded Debt                         -      (8,526,352)       (8,526,352)

End Fund Balance (excluding Plant Funds)        $   2,426,919     $ 8,190,200    $    5,763,281               -




                                 Unaudited - For Management Purposes Only

                                                     47
                                            Oregon State University
                                                  Balance Sheet
                                        Auxiliary Funds - IS WIN Network
                                         As of June 30, 2005 and 2004

                                                                                Increase
                                                     2005            2004      (Decrease)    % Change
Assets
  Current Assets
       Cash                                           186,239              -       186,239
       Restricted Cash                                 30,338              -        30,338
       Accounts Receivable                             23,305              -        23,305
       Allowance for Doubtful Accounts                    -                -           -
       Inventories                                        -                -           -
       Prepaid Expenses and Deferred Charges              -                -           -
       Due From Other Funds                               -                -           -
    Total Current Assets                              239,883              -       239,883

  Non-Current Assets
      Bond Proceeds - Debt Service                          -              -           -
      Fixed Assets                                          -              -           -
      Accumulated Depreciation                              -              -           -
    Total Non-Current Assets                                -              -           -

Total Assets                                          239,883              -       239,883


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                                1,940              -         1,940
        Liability for Compensated Absences                -                -           -
        Capital Leases Payable                            -                -           -
        XI-F Short Term Bonds Payable                     -                -           -
        Deposits                                          -                -           -
        Deferred Revenues                                 -                -           -
        Due to Other Funds                                -                -           -
     Total Current Liabilites                           1,940              -         1,940

  Non-Current Liabilites
      XI-F Long Term Bonds Payable                          -              -           -

Total Liabilities                                       1,940              -         1,940

     Fund Balance                                     237,942              -       237,942

     Total Liabilities and Fund Balance               239,882              -       239,882

Working Capital

   Current Assets                                     239,883                      239,883
   Less: Current Liabilities                            1,940                        1,940

     Working Capital at End of Period                 237,943                      237,943


                                  Unaudited - For Management Purposes Only

                                                      48
                                                 Oregon State University
                                   Statement of Revenues, Expenses, and Other Changes
                                             Auxiliary Funds - IS WIN Network
                                   For the Twelve Months Ending June 30, 2005 and 2004


                                                                                               Increase
                                                                   2005        2004           (Decrease)   % Change
Revenue

     Enrollment Fees                                                   -              -              -
     Fee Remissions                                                    -              -              -
     Government Appropriations                                         -              -              -
     Gifts, Grants, and Contracts                                      -              -              -
     Lottery Proceeds                                                  -              -              -
     Interest Income                                                   -              -              -
     Sales & Services                                              148,589            -          148,589
     Other Revenue                                                   1,005            -              -

Total Revenue                                                      149,594            -          149,594


Expense

     Total Salaries and OPE                                         78,691            -           78,691
     Service and Supplies                                           52,321            -           52,321
     Depreciation                                                      -              -
     Capital Outlay                                                    -              -               -
     Student Aid                                                       -              -               -

Total Expense                                                      131,012            -          131,012

     Net Change From Operations                                     18,582            -           18,582
     Fixed Asset Disposal Gain/(Loss)                                  -              -              -
     Net Transfers In/(Out)                                            -              -              -

Net Increase (Decrease) in Fund Balance                             18,582            -           18,582

Beginning Operations Fund Balance                                  219,360            -          219,360
     Prior Period Adjustments (1)                                      -              -              -
     NIP Change in Fixed Assets                                        -              -              -
     Fund Deductions To Reserves                                       -              -              -

Ending Fund Balance from Operations                                237,942            -          237,942

Beginning Plant Fund Balance                                              -               -

     Plant Revenues                                                       -               -
     Plant Expenditures                                                   -               -
     CIP Expenditures Pending Capitalization                              -               -
     Net Transfers in/(Out)                                               -               -

Net Increase (Decrease) in Plant Fund Balance                             -               -

Ending Plant Fund Balance                                                 -               -

Total Operations & Plant Fund Balance                              237,942                -      237,942
Notes:
     (1) IS WIN Network operations includes the following funds:
                            IS WIN Network
                            IS WIN Program



                                                  Unaudited - For Management Purposes Only

                                                                          49
                                                Oregon State University
                                                      Balance Sheet
                                             Auxiliary Funds - Miscellaneous
                                              As of June 30, 2005 and 2004

                                                                                          Increase
                                                       2005                2004          (Decrease)    % Change
Assets
  Current Assets
       Cash                                             1,341,679          1,418,733        (77,053)      5.43%
       Restricted Cash                                    145,519            136,964          8,556       6.25%
       Accounts Receivable                                295,787            259,215         36,572      14.11%
       Allowance for Doubtful Accounts                    (25,660)           (30,777)         5,117      16.63%
       Inventories                                        136,156            126,137         10,019       7.94%
       Prepaid Expenses and Deferred Charges                  -                  -              -
       Due From Other Funds                                   -                  -              -
    Total Current Assets                                1,893,482          1,910,272        (16,790)      0.88%

  Non-Current Assets
      Bond Proceeds - Debt Service                            -                  -              -
      Fixed Assets                                      2,194,005          2,110,418         83,587       3.96%
      Accumulated Depreciation                         (1,105,660)          (980,265)      (125,395)     12.79%
    Total Non-Current Assets                            1,088,345          1,130,153        (41,808)      3.70%

Total Assets                                            2,981,827          3,040,424        (58,598)      1.93%


Liabilities and Fund Balance
  Current Liabilities
        Accounts Payable                                   79,460               92,862      (13,402)     14.43%
        Liability for Compensated Absences                 42,405               25,914       16,491      63.64%
        Capital Leases Payable                                -                    -            -
        XI-F Short Term Bonds Payable                         -                    -            -
        Deposits                                            1,250                1,150          100       8.70%
        Deferred Revenues                                   9,609               24,984      (15,376)     61.54%
        Due to Other Funds                                 27,713               35,908       (8,195)     22.82%
     Total Current Liabilites                             160,437              180,818      (20,381)     11.27%

  Non-Current Liabilites
      XI-F Long Term Bonds Payable                              -                  -            -

Total Liabilities                                         160,437              180,818      (20,381)     11.27%

     Fund Balance                                       2,821,389          2,859,606        (38,217)      1.34%

     Total Liabilities and Fund Balance                 2,981,827          3,040,424        (58,598)      1.93%

Working Capital

   Current Assets                                       1,893,482          1,910,272        (16,790)      0.88%
   Less: Current Liabilities                              160,437            180,818        (20,381)     11.27%

     Working Capital at End of Period                   1,733,044          1,729,453          3,591       0.21%




                                     Unaudited - For Management Purposes Only

                                                           50
                                                  Oregon State University
                                   Statement of Revenues, Expenses, and Other Changes
                                             Auxiliary Funds - Miscellaneous
                                   For the Twelve Months Ending June 30, 2005 and 2004


                                                                                                    Increase
                                                                2005              2004             (Decrease)       % Change
Revenue

       Enrollment Fees                                          138,977            119,404                  -          0.00%
       Fee Remissions                                               -                  -                    -
       Government Appropriations                                    -                  -                    -
       Gifts, Grants, and Contracts                                 -                  -                    -
       Lottery Proceeds                                             -                  -                    -
       Interest Income                                           16,078              9,505                6,573       69.16%
       Sales & Services                                       2,945,850          2,540,771              405,079       15.94%
       Other Revenue                                              1,984              6,513                  -          0.00%

Total Revenue                                                 3,102,889          2,676,193              426,695       15.94%


Expense

       Total Salaries and OPE                                   888,818            871,436               17,382        1.99%
       Service and Supplies                                   2,100,005          1,643,459              456,546       27.78%
       Depreciation                                              64,836             59,255                5,581        9.42%
       Capital Outlay                                               -                  -                    -
       Student Aid                                                  -                  -                    -

Total Expense                                                 3,053,659          2,574,149              479,509       18.63%

       Net Change From Operations                                   49,230         102,044               (52,814)     51.76%
       Fixed Asset Disposal Gain/(Loss)                                -               -                     -
       Net Transfers In/(Out)                                       (7,012)            -                     -

Net Increase (Decrease) in Fund Balance                             42,218         102,044               (59,826)     58.63%

Beginning Operations Fund Balance                             2,859,606          2,686,892              172,714        6.43%
     Prior Period Adjustments (1)                                   -                  -                    -
     CIP Expenditures Pending Capitalization                        -               (3,190)               3,190
     NIP Change in Fixed Assets                                  17,643             73,858                  -          0.00%
     Fund Deductions To Reserves                                (98,078)               -                    -

Ending Fund Balance from Operations                           2,821,389          2,859,604               (38,214)      1.34%

Beginning Plant Fund Balance                                             -                 -

       Plant Revenues                                                    -                 -
       Plant Expenditures                                                -                 -
       CIP Expenditures Pending Capitalization                           -                 -
       Net Transfers in/(Out)                                            -                 -

Net Increase (Decrease) in Plant Fund Balance                            -                 -

Ending Plant Fund Balance                                                -                 -

Total Operations & Plant Fund Balance                         2,821,389          2,859,604               (38,214)      1.34%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.


(2) Miscellaneous Auxiliary operations consists of the following:
       Forestry Dwelling Rentals               Cascades Campus Bookstore      Ag. Experiment Center Housing.
       HMSC Housing & Bookstore                Library Document Services      OAS - Ship Operations Clothing
       Child Care Center                       HHP - Locker Room Service & Staff Fitness




                                         Unaudited - For Management Purposes Only

                                                                    51
                                          Oregon State University
                                 Auxiliary Operating Funds - Miscellaneous
                                             Fiscal Year 2005




                                                       Initial                         Favorable         %
                                                      Budget            Actual       (Unfavorable)    Variance
Revenue

        Enrollment Fees                           $     163,000     $     138,976    $     (24,024)        -14.7%
        Interest Income                                 122,259            13,113         (109,146)        -89.3%
        Sales & Services                              1,061,486         1,525,693          464,207          43.7%
        Other Revenue                                   662,042           725,328           63,286           9.6%
        Internal Sales                                  834,890           816,068          (18,822)         -2.3%

Total                                                 2,843,677         3,219,178          375,501         13.2%



Expense

        Total Salaries and OPE                          940,487           967,508          (27,021)         -2.9%
        Service and Supplies                          2,063,727         2,151,236          (87,509)         -4.2%
        Depreciation                                     58,812            65,064           (6,252)        -10.6%

Total                                                 3,063,026         3,183,808         (120,782)         -3.9%

        Net Change From Operations                    (1,031,109)          35,370        1,066,479        203.4%
        Net Transfers In/(Out)                                            219,345          219,345             -

Net Increase (Decrease) in Fund Balance               (1,031,109)         254,715        1,285,824        224.7%

Beg Fund Balance (excluding Plant Funds)              2,722,655         2,722,655              -             -
     Fund Additions/Deductions                              -             (93,896)         (93,896)

End Fund Balance (excluding Plant Funds)          $   1,691,546     $   2,883,474    $   1,191,928         70.5%




                                     Unaudited - For Management Purposes Only

                                                          52
Financial Reports for Executive Team
Financial Results for the Month Ending June 30, 2005
Auxiliary Funds 100000 – 199999

Auxiliary Operations

Auxiliary Operations are financially self-sustaining entities existing primarily for the
purpose of serving the OSU community, but also provides services to additional County,
State and Federal entities. Additionally they may provide services to private entities and
individuals. They are considered self-supporting in that they must set their rates so that
the revenue covers the expenses and provides for growth if necessary, as well, they
may not be funded from any type of Education and General fund monies in the event
they operate in a negative condition. Some of the larger Auxiliary units include Athletics,
Housing and Dining Services, Student Centers and Health Services.

Housing

Background: This Auxiliary operation, and associated reserve and plant funds, records
transactions related to the Housing and Dining operations of campus as it relates
primarily to the student population. Services provided by this operation are mainly
related to the rental of housing facilities for the student population, as well as the dining
operations associated with those facilities. Though mainly focused on the student
population, faculty and staff also enjoy dining benefits. As well, Housing operates a
Catering Service for on-campus activities.

During Fiscal Year 2005, construction was completed and depreciation begun on
Weatherford Hall, which houses the Entrepreneurial Business Program, as well, a
contract was let for the renovation and operation of the former College Inn by a private
firm, in which future case we will be receiving percentage revenues and eventually
possession of the improved building.

Statement of Revenues, Expenses, and Other Changes

Revenues: For Fiscal Year 2004, Gift Revenue was recorded in Operations related to
the construction of Weatherford hall from the OSU Foundation, however, during Fiscal
Year 2005, that gift revenue was recorded in Plant Funds set up to receive it (Accounting
Difference). Interest revenue increase of $34K (41.99%) is attributable to steady cash
balances and a slight increase in interest rates. Sales and Service revenue increases of
$2.5M (11%) are attributable to a number of factors, including a $178K increase in
Conference Special Events and Banquet income, and Rental, Housing and Food
Services increase of $1.7M, the result of a more constant occupancy rate as well as a
change in the rate structure. Other Sales and Service revenue increase of $29K
(132.08%) is primarily the result of receiving a new commission from a contract that was
not in place during Fiscal Year 2004. Overall increase in revenue is $569K or 2.31%.

Expenses: A Total Salaries and OPE increase of $565K (7.12%) is primarily the result
of increased OPE rates ($341K) and increased Student Pay ($517K).

Balance Sheet




                                             53
Assets: Cash is increased by $728K (15.14%) and is largely related to the decrease in
Accounts Payable and Short Term Bonds. A decrease of $68K (89.16%) in Prepaid
Expenses and Deferred Charges is largely associated with a prepayment of $50K
associated with new register equipment and the University ID Conversion project. An
increase in Bond Proceeds – Debt Service of $1.6M (68.48%) is attributable to an
increase in the bond distribution amounts for this operation in Fiscal Year 2005 for
completion of continued projects. Overall assets are increased by $3.3M and 4.97%.

Liabilities: Accounts Payable decrease of $1.6M (86.2%) is attributable to an amount
recorded as payable in Fiscal Year 2004 for the Weatherford Construction Projects.
Short Term Bonds Payable decrease of $1.9M is a universal occurrence on campus with
OUS now holding this debt centrally. A $6M increase in Long Term Bonds Payable is
primarily represented by new Bonded Debt associated with Halsell Hall and the newly
renovated Weatherford Hall.

Working Capital at the end of Fiscal Year 2005 is $10.3M, a $4.5M increase when
compared to Fiscal Year 2004. This is primarily the result of OUS centralizing the Short
Term Bonds, as well as the large decrease in Accounts Payable when compared to prior
year.

Student Centers

Background: These Auxiliary operations, and associated reserve funds, record
transactions related primarily to the operations of the Memorial Union, Student
Educational Activities, Student Recreation Center, ASOSU Child Care Facility, Student
Involvement, the MU Mail Boxes, and OSU Incidental Fees Clearing Fund, which is the
originating fund responsible for distribution of the Student Fees to appropriate other
Auxiliaries and Agency Funds.

During Fiscal Year 2005, and beginning in Fiscal Year 2004, the Memorial Union
associated funds within this group began funding a Major Project Fund for future
renovations and construction that may be deemed necessary. A number of new store
fronts were in operation this year for the full accounting cycle, including Bites – a
convenience store located in the Memorial Union, and Dixon Café – a health café
located in the expanded Dixon Recreation Center. Carl’s Jr. replaced Burger King as
the franchised hamburger restaurant in the Memorial Union as well.

Statement of Revenues, Expenses, and Other Changes

Revenues: Overall Revenue for this operation was increased by $450K (3.57%). A
decrease of $387K (4.31%) in Enrollment Fees is attributable the decline in Incidental
Fee, witnessed in other Auxiliary operations. An $8K (27.17%) decrease in Fee
Remissions is also directly linked to the declining Incidental Fees. Interest revenue was
increased $38K (36.07%) and is attributable to stable cash positions and slightly
increased rates. Sales and Service revenue increase of $795K (22.7%) is primarily the
responsibility of a full year of service and sales at the Dixon Café, as well as the newly
opened Bites Convenience Store.

Expenses: Total Salaries and OPE increased by $977K (18.32%) and is a result of
bringing the Custodial Service for the Memorial Union back in-house, resulting in a
higher service level in that area, as well as slight increases in paid student personnel.


                                             54
Service and Supply expense increase of $645K (13.03%) is primarily the result of
increases in Maintenance and Repair ($186K), Fees and Services ($111K), Food for
Resale ($221K), plus marginal increases in additional operating supplies ($108K).
Depreciation expense increase of $436K (64.80%) is the result of the expanded Dixon
Recreation Center being on-line for the full year of Fiscal Year 2005. The total increase
in expense for operations is $2M (18.79%).

Balance Sheet

Assets: Total Current Assets decreases of $466K (7.18%) were attributable to a
number of areas. Cash decrease of $367K (8.95%) is a result of decreased Incidental
Fees and the operation of the expanded Dixon Recreation Center. Restricted Cash
decrease of $118K (7.24%) is primarily the result of expenditures made for repairs and
maintenance of the Memorial Union and the Recreation Sports Buildings. As evidenced
in additional operations on campus, the decrease in Allowance for Doubtful Accounts of
$22K (22.3%) is the result of a change in the allowance rate, determined by the Bursar,
based on aging schedules of the accounts receivable. A decrease of $13K (74.08%) in
Prepaid Expenses and Deferred Charges is primarily due to a prepayment to a vendor
(Micros) in Fiscal Year 2004 for equipment associated with the University ID Conversion
project that took place. Additionally, Total Non-Current Assets decrease of $753K
(2.58%) is attributable to increases in Accumulated Depreciation of $1.1M (7.06%). The
total decrease in Assets for the Fiscal Year ended 2005 is $1.2M (3.41%).

Liabilities: An increase in Compensated Absence Liability $23K (10.72%) is primarily
the result of the expanded staff associated with the Custodial Service at the Memorial
Union. The decrease in Short Term Bonds Payable of $16K is a universal occurrence
among auxiliaries as OUS centralized the short term debt for all institutions during Fiscal
Year 2005. An $8K (17.28%) increase in Deposits is the result of increased deposits on
food and copy cards held on campus, while an increase of $24K (5.09%) in Deferred
Revenues is primarily the result of increased Summer Session revenue. Total Liabilities
decreased by $95K or 8.35%.

Working Capital decrease of $383K (6.95%) is consistent with overall decreases in cash
when compared to current liabilities and overall Fiscal Year 2005 operations.

Athletics

Background: This Auxiliary operation, and associated reserve and plant funds, records
transactions related to Athletics activities on campus. Though primarily recognized for
the football program, a number of additional sports including baseball, softball, volleyball,
track and basketball are included in this operation.

An expansion plans for Reser Stadium was begun in Fiscal Year 2004, while Fiscal Year
2005 saw the majority of construction costs for this project. While slated to be
completed in Fiscal Year 2006, most of the expenditures are now in. The newly
expanded stadium will host an additional 8,000 seats, bringing the total seating capacity
to an estimated 43,000.

Statement of Revenues, Expenses, and Other Changes




                                             55
Revenues: Revenue for this unit is relatively unchanged from prior year, increasing by
$974K (3.06%). Gift, Grant and Contract Revenue increases of $1.2M (10.47%) are
primarily related to the increase in Bond Debt payments being drawn from Gift Funds.
An increase in Lottery Proceeds of $84K (17.08%) is attributable to a new distribution
model and increased gaming offers.

Expenses: Total expense increases for this operation are $3.2M (10.63%) and are
mainly attributable to increases in Service and Supply expense ($1.6M/12.75%) as well
as Student Aid expense ($359K/6.19%). Within Service and Supply, increases are
primarily attributable to an increase in Travel ($1.1M) due to one extra football road
game this fiscal year, as well as travel related to the College World Series (Baseball) in
which OSU competed. Summer Term expense increases for Fiscal Year 2005 were
primarily responsible for the increase in Student Aid. Bond Interest Expense increase of
$1M (380.87%) is primarily attributable to the bond payment increase associated with
the Reser Stadium expansion.

Balance Sheet

Assets: An increase of $67M (181.41%) in Total Assets for this Auxiliary is primarily
attributable to ongoing fixed assets items. Restricted Cash increase of $414K (62.08%)
is represented by increased plant fund cash as well as debt service interest savings. An
increase of $71K (31.42%) in Accounts Receivable is a direct result of a new accounting
process for accrual of Foundation receivables at fiscal year end, while the increase in
Allowance for Doubtful Accounts of $2K (686.32%) is a result of a universal change in
the rate of allowance calculated by the Bursar. Prepaid Expenses increase of $324K
(623.48%) is a result of prepayments for Basketball travel, the Montgomery Gentry
Concert after the home opening football game, and a timing difference in the distribution
and accrual of Summer Term Tuition. Fixed Assets increase of $52M (117.33%) is
primarily related to the ongoing construction at Reser Stadium scheduled to complete in
September, Fiscal Year 2006.

Liabilities: Accounts Payable increase of $11.4M (960.34%) are primarily represented
by plant fund accruals for construction invoices payable at June 30. Decrease of $55K
(32.08%) in Capital Leases Payable is a result of a decrease in the number of active
leases, with two having been completed during Fiscal Year 2005, decreasing the longer
term liability. A decrease of $473K in Short Term Bonds Payable is again a universal
result of OUS centralizing this debt at their level. An increase of $52M (1286.66%) in
Long Term Debt is a result of the debt acquired for the expansion of Reser Stadium.

Working Capital for this operation is $1.3M, an increase of $1.9M (321.90%) when
compared to re-stated Fiscal Year 2004.

Health Services

Background: This Auxiliary operation, and associated reserve funds, records
transactions related to the operation of a Student Health Center on the OSU Campus.
Services provided center on student health concerns including wellness, treatment,
mental health and general student population health concerns. On occasion, they do
host vaccinations for Staff and Faculty through the OSU health plans. Included in this
group of funds is one that provides for the mental health of the student population.
University Counseling and Psychological Services is not administered directly by the


                                            56
Director of Health Services. Revenues for this group are primarily earned through
student fees (Health Service Fee), but also include a portion from services provided to
students as well as supplemental, program specific reimbursements by County Health
Services.

During Fiscal Year 2005, Health Services undertook no new construction or renovations,
however it is anticipated that at some point in the near future, they will either need to
have a new building raised or perform a major renovation and addition to the current
structure. For the prior two fiscal years, Health Services has begun planning for this
undertaking by increasing funding available in a Major Project Fund with a portion of
revenues from operations.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues for this operation are stable, increasing by $72K (.89%). Interest
revenue increased by $49K (133.12%) and is primarily the result of stable cash balances
and slightly increased rates, while a decrease of $6K (31.53%) in Fee Remissions is
seen throughout Auxiliaries as Incidental Fees decline.

Expenses: Health Services expense decreased by $131K (1.9%). An increase of
$207K (5.11%) in Salaries and OPE is attributable to the OPE rate increases
experienced during Fiscal Year 2005, a decrease of $333K (11.84%) was seen in
Services and Supplies. Within Services and Supplies, this decrease is most apparent in
Medical Insurance Premiums due to a steady decline in the participation by students in
the Student Insurance program. A decrease of $249K (99.68%) in Transfers is
attributable to the transfer out of $250K during Fiscal Year 2004 to the Dixon Recreation
Center Therapy Center remodel.

Balance Sheet

Assets: Cash is increased by $1M (35.75%) and is a product of prior fiscal year carry-
forward balances in the Major Project Fund. Restricted Cash increase of $281K
(106.15%) is attributable to funding of reserves from Operations and is tied to a business
plan for funding those repairs and replacements. A decrease of $27K (23.16%) in the
Allowance for Doubtful Accounts without any corresponding decrease in Accounts
Receivable is again a result of decreases in the applied rate for doubtful accounts
performed by the Bursar across all fund groups and based on collections rates.

Liabilities: Liabilities decreased $45K (5.94%) for Fiscal Year 2005. A decrease of
$73K (49.93%) in Accounts Payable is attributable to a decrease in the amount payable
at year end to a specific vendor for services (insurance premiums) in Fiscal Year 2004
when compared to Fiscal Year 2005 and is consistent with decreases witnessed in
Services and Supplies Expense. Offsetting this decrease, an increase in Deferred
Revenues of $32K (7.34%) is a result of increased Summer Session Fees distribution
when compared to prior year.

Working Capital at the end of Fiscal Year 2005 has increased by $772K (20.51%),
primarily the result of cash carry forward from Fiscal Year 2004 in the Major Project
Fund and Reserves.

Parking Services


                                            57
Background: This Auxiliary operation, and associated reserve and plant funds, records
transactions related to the operations of parking infrastructure on the OSU campus.
Services provided include construction of and maintenance for all parking facilities
located on the OSU campus, as well as signage for those facilities. Parking Services is
also the designated monitor of those lots and is responsible for the issuing of tickets to
vehicles failing to park within the regulations. These regulations are maintained by
Parking Services with input from a cross-sectional group of campus members entitled
the “Parking Services Committee”. Parking Services revenues are primarily generated
by parking fees paid by OSU students and employees for parking privileges.

During Fiscal Year 2004, Parking Services undertook the construction of a new, multi-
level parking facility. Construction continued through Fiscal Year 2005 and completion is
set for September, 2005. Estimated cost of this construction is $17M; the primary
source of funding was from the sale of XI F bonds.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenue for the unit was virtually unchanged from prior year operations.
Interest revenue, derived from interest bearing reserve funds, increased by $2.4K
(11.26%) while Sales and Service revenue decreased by $3.5K (.19%) yielding a net
decrease in revenues of $1K when compared to Fiscal Year 2004.

Expenses: Parking Service Expenses increased $191K when compared to the previous
fiscal year. This increase is largely attributable to the increase of Bond Interest expense
associated with an increase in bond debt payments associated with the new parking
facility. Salary and Other Payroll Expenses (OPE) increased $34K (5.96%) when
compared to the previous year. Labor cost increases are primarily attributable to
increases in OPE and total salaries paid for Unclassified/Classified staff which is offset
by a decrease in Student Pay. Total Services and Supply expense was lower by $86K
(19.36%) when compared to the previous fiscal year. General Supply expense was
lower by $50K and is largely attributable to a decrease in the purchase of Minor
Equipment of $44K, while Maintenance & Repair expenditures related to parking lots
decreased by $25K. Expenses for Fees & Services were lower by $24K related to lower
expenditures for Architectural Services and expenditures relating to Publishing. Fund
Deductions of $8.5M are attributable to Bonded Debt, as evidenced by the increase in
Long Term Bonds Payable on the Balance Sheet.

Balance Sheet

Assets: Cash balances decreased by $419K which is primarily attributable to increases
in Bond Debt Principle/Sinking Fund adjustments of $533K. Restricted Cash decreased
by $1.3M and is wholly attributable to the funding of construction of a new Parking
Facility. The decrease of $27K in Accounts Receivable without a corresponding
decrease in revenues indicates a quicker payment rate on outstanding receivables. The
decrease in Allowance for Doubtful Accounts is primarily the result of a campus wide
reduction in the rate calculation. The change in Fixed Assets of $14.3M is attributable to
the ongoing construction of the new Parking Facility as well as slight increases in
Equipment, while increased Accumulated Depreciation of $254K is consistent with a
Fiscal Year 2004 end of year increase in depreciable Land Improvements.



                                            58
Liabilities: Total Liabilities increase of $8.4M is principally represented by an increase
in Parking Structure Bond Indebtedness of $8.6M. The decrease in Accounts Payable of
$40K is primarily due to a Fiscal Year 2004 payable related to construction, decreases of
$9K in Short Term Bonds Payable are due to a change in the payment structure of these
bonds as they are now held centrally with OUS.

Working Capital at the end of Fiscal Year 2005 has decreased from $2.7M to $974K a
difference of $1.7M, typical of a unit of this size undertaking a large capital project.

Miscellaneous Auxiliaries

Background: These Auxiliary operations, and associated reserve and plant funds,
record activities that take place in a number of areas both on and off campus, but in a
volume of transactions and dollars that do not warrant individual breakout of activities at
this point.

As a highlight, included in these operations are a number of rental activities (housing
and facilities), La Sells Stewart Center (Conferences), the Health and Human Services
Staff and Faculty Fitness program and associated Locker Rentals, Child Care Center,
Cascades Campus Student Activities and Pharmacy Student Health Operations.

Statement of Revenues, Expenses, and Other Changes

Revenues: Interest revenue increase of $7K (69.16%) is a result of stable cash
balances and slightly increased interest rates. Increase of $405K (15.94%) in Sales and
Service Revenues are primarily attributable to increased La Sells Stewart facilities rental
activity ($223K) and Food Innovation Center Rental lease income of $194K.

Expenses: Service and Supply increase of $457K (22.78%) is primarily made up by the
following activities: $103K increase in Pharmacy Student Health, largely attributable to
an increase in office equipment ($70K); $195K increase in La Sells Stewart Center
primarily the result of increased Building Maintenance ($16K), and Conference
associated Housing ($53K) and Meals ($67K); $100K increase in the Food Innovation
Center (Astoria) with increases presented in Custodial Service ($20K), and Utilities
($75K).

Balance Sheet

Assets: Increase of $37K (14.11%) in Accounts Receivable is primarily the result of
increased year end payables by Pharmacy Student Health of $19K and La Sells Stewart
Center of $18K. Decrease of $5K (16.63%) in the Allowance for Doubtful Accounts is
again a product of downward adjustment of the rate by the Bursar, based on prior
collections of receivables for the operations.

Liabilities: Liability for Compensated Absence increase of $16K (63.64%) are primarily
represented by increases at Pharmacy Student Health, $12K or 100%, and smaller
increases in a number of the auxiliaries presented here. Deferred Revenue decrease of
$15K is attributable to a decrease in Summer Session Fees at Pharmacy Student Health
of %15K.

Working Capital is increased by $4K to $1.7M for the Fiscal Year Ended 2005.


                                            59
                                                                                                  Oregon State University
                                                                                                       Balance Sheet
                                                                                                   Service Center Funds
                                                                                                As of June 30, 2005 and 2004




                                                               Inter-Inst        ETS          Printing &           Motor         Surplus     Desktop    Miscellaneous       Total          Total         Increase
                                                Telecom         Network        Network         Mailing             Pool          Property    Services   Service Centers     2005           2004         (Decrease)    % Change
Assets
  Current Assets
        Cash                                     1,005,756         780,079        531,699          395,975           282,749     114,579       70,426          395,021     3,576,284      1,646,256     1,930,028      117.24%
        Restricted Cash                          1,413,074         670,426        179,371          523,541         2,381,428     115,291          -            199,322     5,482,452      3,426,339     2,056,113       60.01%
        Accounts Receivable                            -               -              -             27,364             9,260       1,250          -             18,257        56,131         76,044       (19,913)      26.19%
        Allowance for Doubtful Accounts                -               -              -                -                 -           -            -                -             -              -             -
        Inventories                                 84,649             -              -            109,043            29,229         -            -            121,460       344,381        313,914        30,467        9.71%
        Prepaid Expenses and Deferred Charges          -               -              -            153,813                39         -            -             49,193       203,045        107,085        95,960       89.61%
        Due From Other Funds                           -               -              -                -                 -           -            -                -             -              -             -
    Total Current Assets                         2,503,479       1,450,504        711,070        1,209,736         2,702,704     231,120       70,426          783,253     9,662,294      5,569,639     4,092,654       73.48%

  Non-Current Assets
        Fixed Assets                              7,304,788         584,282       976,007          943,374          4,802,754     120,176         -            527,374     15,258,754     13,523,902     1,734,853      12.83%
        Accumulated Depreciation                 (5,954,987)       (479,029)     (690,285)        (689,028)        (3,951,902)   (118,728)        -           (361,483)   (12,245,441)   (10,992,992)   (1,252,449)     11.39%
    Total Non-Current Assets                      1,349,802         105,253       285,721          254,346            850,852       1,448         -            165,891      3,013,314      2,530,910       482,404      19.06%

Total Assets                                     3,853,281       1,555,758        996,791        1,464,082         3,553,556     232,569       70,426          949,144    12,675,607      8,100,549     4,575,058       56.48%




Liabilities and Fund Balance
  Current Liabilities
          Accounts Payable                         313,025           49,716        11,003          271,138            40,631       13,937      31,730           97,726       828,907        243,200       585,707      240.83%
          Liability for Compensated Absences        65,096           28,037         8,063           45,169            21,242       11,892      38,696           55,903       274,098        254,604        19,494        7.66%
          Deposits                                     -                -             -                -                 -            -           -                -             -            4,998           -
          Deferred Revenues                            -                -             -             32,994               -            -           -            (18,543)       14,451            430        14,022     3264.59%
          Due to Other Funds                           -                -             -                -                 -            -           -                -             -              -             -
    Total Current Liabilities                      378,121           77,753        19,066          349,301            61,873       25,829      70,426          135,086     1,117,456        503,231       614,225       122.06%

Fund Balance                                     3,475,159       1,478,005        977,725        1,114,782         3,491,683     206,739          -            814,058    11,558,151      7,597,318     3,960,833       52.13%

Total Liabilities and Fund Balance               3,853,281       1,555,758        996,791        1,464,082         3,553,556     232,569       70,426          949,144    12,675,607      8,100,549     4,575,058       56.48%


Working Capital
  Current Assets                                 2,503,479       1,450,504        711,070        1,209,736         2,702,704     231,120       70,426          783,253     9,662,294      5,569,639     4,092,654        73.48%
  Less: Current Liabilities                        378,121          77,753         19,066          349,301            61,873      25,829       70,426          135,086     1,117,456        503,231       614,225       122.06%

     Working Capital at End of Period            2,125,358       1,372,751        692,004          860,436         2,640,831     205,291          -            648,167     8,544,838      5,066,409     3,478,429       68.66%




                                                                                         Unaudited - For Management Purposes Only

                                                                                                              60
                                                                                               Oregon State University
                                                                                 Statement of Revenues, Expenses, and Other Changes
                                                                                                 Service Center Funds
                                                                                 For the Twelve Months Ending June 30, 2005 and 2004


                                                      Inter-Inst      ETS         Printing &       Motor         Surplus        Desktop     Miscellaneous        Total         Total        Increase
                                          Telecom      Network      Network        Mailing         Pool          Property       Services    Service Centers      2005          2004        (Decrease)     % Change
Revenue

    Revenue from Outside of OUS             236,163      112,297          565        634,091          35,257      240,078             -             568,539     1,826,991     1,410,187        416,804       29.56%
    Revenue From OUS Depts                4,536,127      370,631    4,051,766      4,482,288       1,447,285       65,151       1,265,266         2,181,196    18,399,710     8,589,855      9,809,855      114.20%

Total Revenue                             4,772,290      482,928    4,052,331      5,116,379       1,482,542      305,230       1,265,266         2,749,734    20,226,701    10,000,042     10,226,659     102.27%




Expense

    Total Salaries and OPE                1,189,271      482,880    2,434,538        947,711         394,593      205,314       1,035,779         1,328,183     8,018,269     3,320,573      4,697,696      141.47%
    Service and Supplies                  3,121,402      342,927      933,852      4,021,118         657,067       70,226         229,487         1,277,397    10,653,475     6,356,070      4,297,406       67.61%
    Deprecation                             243,831       30,054      179,371         72,535         298,530        1,580             -              76,046       901,947       816,875         85,072       10.41%
    Capital Outlay                              -            -            -              -               -            -               -                 -             -         (21,000)        21,000

Total Expense                             4,554,504      855,861    3,547,761      5,041,364       1,350,189      277,120       1,265,266         2,681,626    19,573,692    10,472,518      9,101,174      86.91%

    Net Change From Operations             217,786      (372,933)     504,570         75,015         132,353       28,110              -             68,108       653,009      (472,476)     1,125,486     238.21%
    Fixed Asset Disposal Gain/(Loss)       (25,626)          -         (2,045)           -            57,952          -                -            (12,470)       17,811        40,779        (22,968)     56.32%
    Net Transfers In/(Out)                (472,346)      (79,272)       8,063            -               -            -                -                -        (543,555)          -         (543,555)
    NIP Change in Fixed Assets             824,869         1,428      467,137            -             1,000          -                -             (7,650)    1,286,784
    Fund Deductions To Reserves                -             -            -              -               -            -                -                -             -             -              -

Net Increase (Decrease) in Fund Balance    544,683      (450,777)     977,725         75,015         191,305       28,110              -            47,988      1,414,049     (431,698)       558,963      129.48%

Beginning Fund Balance                    2,930,476    1,928,782          -        1,039,766       3,300,378      178,630              -           766,069     10,144,102     8,040,153      2,103,949      26.17%
   Prior Period Adjustment (1)                  -            -            -              -               -            -                -               -              -         (19,552)        19,552


Ending Fund Balance                       3,475,159    1,478,005      977,725      1,114,782       3,491,683      206,739              -           814,058     11,558,151     7,588,903      3,969,248      52.30%




                                                                                     Unaudited - For Management Purposes Only

                                                                                                           61
                                               Oregon State University
                                                    Balance Sheet
                                           Service Center Funds - Telecom.
                                            As of June 30, 2005 and 2004




                                                                                        Increase
                                                     2005               2004           (Decrease)     % Change
Assets
  Current Assets
           Cash                                       1,005,756          1,005,206            550        0.05%
           Restricted Cash                            1,413,074          1,388,074         25,000        1.80%
           Accounts Receivable                              -                  -              -
           Allowance for Doubtful Accounts                  -                  -              -
           Inventories                                   84,649             69,682         14,967       21.48%
           Prepaid Expenses and Deferred Char               -                  454           (454)
           Due From Other Funds                             -                  -              -
     Total Current Assets                             2,503,479          2,463,416         40,063        1.63%

   Non-Current Assets
           Fixed Assets                               7,304,788          6,592,953        711,835       10.80%
           Accumulated Depreciation                  (5,954,987)        (5,890,628)       (64,359)       1.09%
     Total Non-Current Assets                         1,349,802            702,325        647,477       92.19%

Total Assets                                          3,853,281          3,165,741        687,540       21.72%




Liabilities and Fund Balance
   Current Liabilities
             Accounts Payable                          313,025               139,294      173,731      124.72%
             Liability for Compensated Absences         65,096                95,969      (30,873)      32.17%
             Deposits                                      -                     -            -
             Deferred Revenues                             -                     -            -
             Due to Other Funds                            -                     -            -
       Total Current Liabilities                       378,121               235,263      142,858       60.72%

Fund Balance                                          3,475,159          2,930,476        544,683       18.59%

Total Liabilities and Fund Balance                    3,853,281          3,165,739        687,542       21.72%


Working Capital
   Current Assets                                     2,503,479          2,463,416         40,063        1.63%
   Less: Current Liabilities                            378,121            235,263        142,858       60.72%

       Working Capital at End of Period               2,125,358          2,228,153        (102,795)      4.61%




                                     Unaudited - For Management Purposes Only

                                                         62
                                                  Oregon State University
                                    Statement of Revenues, Expenses, and Other Changes
                                              Service Center Funds - Telecom
                                    For the Twelve Months Ending June 30, 2005 and 2004




                                                                                                       Increase
                                                              2005                       2004         (Decrease)   % Change
Revenue

       Revenue from Outside of OUS                              236,163                    530,785     (294,622)     55.51%
       Revenue From OUS Depts                                 4,536,127                  4,770,792     (234,665)      4.92%

Total Revenue                                                 4,772,290                  5,301,577     (529,287)      9.98%




Expense

       Total Salaries and OPE                                 1,189,271                  1,510,164     (320,893)     21.25%
       Service and Supplies                                   3,121,402                  3,072,729       48,673       1.58%
       Deprecation                                              243,831                    511,315     (267,484)     52.31%
       Capital Outlay                                               -                          -            -

Total Expense                                                 4,554,504                  5,094,208     (539,704)     10.59%

       Net Change From Operations                                217,786                   207,369       10,417       5.02%
       Fixed Asset Disposal Gain/(Loss)                          (25,626)                      -            -
       Net Transfers In/(Out)                                   (472,346)                      -            -
       NIP Change in Fixed Assets                                824,869                    11,164      813,705     7288.65%
       Fund Deductions To Reserves                                   -                         -            -

Net Increase (Decrease) in Fund Balance                          544,683                   218,533      326,150     149.25%

Beginning Fund Balance                                        2,930,476                  2,719,620      210,856       7.75%
     Prior Period Adjustment (1)                                    -                       (7,676)         -

Ending Fund Balance                                           3,475,159                  2,930,477      544,682      18.59%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                          Unaudited - For Management Purposes Only

                                                                   63
                                     Oregon State University
                         Service Center Operations - Information Services
                                             Telecom
                                         Fiscal Year 2005




                                               Initial                          Favorable          %
                                              Budget             Actual       (Unfavorable)     Variance

Revenue

    Revenue from Outside of OUS           $   130,785.00 $         236,163    $   105,378.08         80.6%
    Revenue From OUS Depts                     4,162,511         4,536,127          373,616           9.0%

Total Revenue                                  4,293,296         4,772,290          478,994          11.2%



Expense

    Total Salaries and OPE                     1,092,657         1,189,271           (96,614)        -8.8%
    Service and Supplies                       2,909,465         3,121,402          (211,937)        -7.3%
    Depreciation                                 291,174           243,831            47,343         16.3%

Total Expense                                  4,293,296         4,554,504          (261,208)         -6.1%

    Net Change From Operations                           -         217,786           217,786           -
    Loss on Disposal of Asset                            -         (25,626)          (25,626)          -
    Net Transfers In/(Out)                               -        (472,346)         (472,346)          -

Net Increase (Decrease) in Fund Balance                  -        (280,186)         (280,186)

Beginning Fund Balance                         1,542,402         1,542,402              -              -
   NIP Change in Net Assets                          -             824,869          824,869            -
   Fund Deductions to Reserves                       -             (25,000)         (25,000)           -

Ending Fund Balance                       $    1,542,402     $   2,062,085    $     519,683          33.7%




                               Unaudited - For Management Purposes Only

                                                   64
                                                  Oregon State University
                                                       Balance Sheet
                                      Service Center Funds - Inter-Institutional Network
                                                As of June 30, 2005 and 2004



                                                                                               Increase
                                                             2005               2004          (Decrease)     % Change
Assets
  Current Assets
           Cash                                                780,079           1,012,655       (232,576)     22.97%
           Restricted Cash                                     670,426             788,627       (118,202)     14.99%
           Accounts Receivable                                     -                   -              -
           Allowance for Doubtful Accounts                         -                   -              -
           Inventories                                             -                   -              -
           Prepaid Expenses and Deferred Charges                   -                   -              -
           Due From Other Funds                                    -                   -              -
     Total Current Assets                                    1,450,504           1,801,282       (350,778)     19.47%

   Non-Current Assets
           Fixed Assets                                        584,282             918,476       (334,194)     36.39%
           Accumulated Depreciation                           (479,029)           (784,596)       305,567      38.95%
     Total Non-Current Assets                                  105,253             133,880        (28,626)     21.38%

Total Assets                                                 1,555,758           1,935,162       (379,404)     19.61%




Liabilities and Fund Balance
   Current Liabilities
             Accounts Payable                                     49,716             6,380         43,336     679.24%
             Liability for Compensated Absences                   28,037               -           28,037
             Deposits                                                -                 -              -
             Deferred Revenues                                       -                 -              -
             Due to Other Funds                                      -                 -              -
       Total Current Liabilities                                  77,753             6,380         71,373     1118.69%

Fund Balance                                                 1,478,005           1,928,782       (450,777)     23.37%

Total Liabilities and Fund Balance                           1,555,758           1,935,162       (379,404)     19.61%


Working Capital
   Current Assets                                            1,450,504           1,801,282       (350,778)      19.47%
   Less: Current Liabilities                                    77,753               6,380         71,373     1118.69%

       Working Capital at End of Period                      1,372,751           1,794,902       (422,150)     23.52%




                                        Unaudited - For Management Purposes Only

                                                             65
                                            Oregon State University
                              Statement of Revenues, Expenses, and Other Changes
                                Service Center Funds - Inter-Instituitional Network
                              For the Twelve Months Ending June 30, 2005 and 2004




                                                                                       Increase
                                                  2005                2004            (Decrease)    % Change
Revenue

     Revenue from Outside of OUS                    112,297              13,211           99,086     750.03%
     Revenue From OUS Depts                         370,631                 -            370,631

Total Revenue                                       482,928              13,211          469,717     3555.50%




Expense

     Total Salaries and OPE                         482,880                 -            482,880
     Service and Supplies                           342,927               8,229          334,698    4067.30%
     Deprecation                                     30,054              98,268          (68,214)     69.42%
     Capital Outlay                                     -                   -                -

Total Expense                                       855,861             106,497          749,364     703.65%

     Net Change From Operations                     (372,933)           (93,286)        (279,647)    299.77%
     Fixed Asset Disposal Gain/(Loss)                    -                  -                -
     Net Transfers In/(Out)                          (79,272)         1,789,920       (1,869,192)    104.43%
     NIP Change in Fixed Assets                        1,428            232,148         (230,720)     99.38%
     Fund Deductions To Reserves                         -                  -                -

Net Increase (Decrease) in Fund Balance             (450,777)         1,928,782       (2,379,559)    123.37%

Beginning Fund Balance                             1,928,782                 -         1,928,782



Ending Fund Balance                                1,478,005          1,928,782         (450,777)     23.37%




                                   Unaudited - For Management Purposes Only

                                                      66
                                     Oregon State University
                         Service Center Operations - Information Services
                                   Inter-Institutional Services
                                         Fiscal Year 2005




                                               Initial                          Favorable          %
                                              Budget             Actual       (Unfavorable)     Variance

Revenue

    Revenue from Outside of OUS           $      185,864     $     114,926    $     (70,938)        -38.2%
    Revenue From OUS Depts                       769,100         4,420,333        3,651,233         474.7%

Total Revenue                                    954,964         4,535,259        3,580,295         374.9%



Expense

    Total Salaries and OPE                       658,704         2,917,418        (2,258,714)      -342.9%
    Service and Supplies                         279,890         1,276,778          (996,888)      -356.2%
    Depreciation                                 107,724           209,425          (101,701)       -94.4%

Total Expense                                  1,046,318         4,403,621        (3,357,303)       -320.9%

    Net Change From Operations                   (91,354)          131,638          222,992         244.1%
    Loss on Disposal of Asset                                       (2,045)
    Net Transfers In/(Out)                               -          48,000           48,000            -

Net Increase (Decrease) in Fund Balance          (91,354)          177,593          268,947         294.4%

Beginning Fund Balance                         1,140,154         1,140,154              -              -
   NIP Change in Net Assets                          -             468,565          468,565            -
   Fund Deductions to Reserves                       -            (180,379)        (180,379)           -

Ending Fund Balance                       $    1,048,800     $   1,605,933    $     557,133          53.1%




                               Unaudited - For Management Purposes Only

                                                   67
                                           Oregon State University
                                               Balance Sheet
                                     Service Center Funds - ETS Network
                                        As of June 30, 2005 and 2004



                                                                               Increase
                                                         2005        2004     (Decrease)    % Change
Assets
  Current Assets
           Cash                                       531,699             -      531,699
           Restricted Cash                            179,371             -      179,371
           Accounts Receivable                            -               -          -
           Allowance for Doubtful Accounts                -               -          -
           Inventories                                    -               -          -
           Prepaid Expenses and Deferred Charges          -               -          -
           Due From Other Funds                           -               -          -
     Total Current Assets                             711,070             -      711,070

   Non-Current Assets
           Fixed Assets                                976,007            -      976,007
           Accumulated Depreciation                   (690,285)           -     (690,285)
     Total Non-Current Assets                          285,721            -      285,721

Total Assets                                          996,791             -      996,791




Liabilities and Fund Balance
   Current Liabilities
              Accounts Payable                           11,003           -       11,003
              Liability for Compensated Absences          8,063           -        8,063
              Deposits                                      -             -          -
              Deferred Revenues                             -             -          -
              Due to Other Funds                            -             -          -
       Total Current Liabilities                         19,066           -       19,066

Fund Balance                                          977,725             -      977,725

Total Liabilities and Fund Balance                    996,791             -      996,791


Working Capital
  Current Assets                                      711,070             -      711,070
  Less: Current Liabilities                            19,066             -       19,066

       Working Capital at End of Period               692,004             -      692,004




                                Unaudited - For Management Purposes Only

                                                    68
                                         Oregon State University
                          Statement of Revenues, Expenses, and Other Changes
                                   Service Center Funds - ETS Network
                          For the Twelve Months Ending June 30, 2005 and 2004



                                                                                 Increase
                                                2005             2004           (Decrease)    % Change
Revenue

     Revenue from Outside of OUS                      565            -                 565
     Revenue From OUS Depts                     4,051,766            -           4,051,766

Total Revenue                                   4,052,331            -           4,052,331



Expense

     Total Salaries and OPE                     2,434,538            -           2,434,538
     Service and Supplies                         933,852            -             933,852
     Deprecation                                  179,371            -             179,371
     Capital Outlay                                   -              -                 -

Total Expense                                   3,547,761            -           3,547,761

     Net Change From Operations                   504,570            -             504,570
     Fixed Asset Disposal Gain/(Loss)              (2,045)           -              (2,045)
     Net Transfers In/(Out)                         8,063            -               8,063
     NIP Change in Fixed Assets                   467,137                          467,137
     Fund Deductions To Reserves                      -              -                 -

Net Increase (Decrease) in Fund Balance           977,725            -             977,725

Beginning Fund Balance                                 -             -                 -



Ending Fund Balance                               977,725            -             977,725




                              Unaudited - For Management Purposes Only

                                                  69
                                          Oregon State University
                                               Balance Sheet
                                 Service Center Funds - Printing and Mailing
                                        As of June 30, 2005 and 2004



                                                                                     Increase
                                                       2005              2004       (Decrease)   % Change
Assets
  Current Assets
        Cash                                                395,975      217,546     178,429       82.02%
        Restricted Cash                                     523,541      523,541           0        0.00%
        Accounts Receivable                                  27,364       27,546        (182)       0.66%
        Allowance for Doubtful Accounts                         -            -           -
        Inventories                                         109,043      109,525        (482)       0.44%
        Prepaid Expenses and Deferred Charges               153,813      173,250     (19,437)      11.22%
        Due From Other Funds                                    -            -           -
    Total Current Assets                                  1,209,736    1,051,408     158,328       15.06%

  Non-Current Assets
        Fixed Assets                                        943,374      910,445       32,929       3.62%
        Accumulated Depreciation                           (689,028)    (631,865)     (57,163)      9.05%
    Total Non-Current Assets                                254,346      278,580      (24,234)      8.70%

Total Assets                                              1,464,082    1,329,988     134,094       10.08%




Liabilities and Fund Balance
  Current Liabilities
           Accounts Payable                                271,138      243,498       27,640       11.35%
           Liability for Compensated Absences               45,169       46,725       (1,556)       3.33%
           Deposits                                            -            -            -
           Deferred Revenues                                32,994          -            -
           Due to Other Funds                                  -            -            -
    Total Current Liabilities                              349,301      290,223       59,078       20.36%

Fund Balance                                              1,114,782    1,039,766      75,016        7.21%

Total Liabilities and Fund Balance                        1,464,082    1,329,989     134,093       10.08%


Working Capital
  Current Assets                                          1,209,736    1,051,408     158,328       15.06%
  Less: Current Liabilities                                 349,301      290,223      59,078       20.36%

     Working Capital at End of Period                      860,436      761,185       99,251       13.04%




                                 Unaudited - For Management Purposes Only

                                                     70
                                             Oregon State University
                              Statement of Revenues, Expenses, and Other Changes
                                    Service Center Funds - Printing and Mailing
                              For the Twelve Months Ending June 30, 2005 and 2004



                                                                                             Increase
                                                            2005                2004        (Decrease)   % Change
Revenue

       Revenue from Outside of OUS                          634,091             611,985        22,106       3.61%
       Revenue From OUS Depts                             4,482,288           4,218,336       263,952       6.26%

Total Revenue                                             5,116,379           4,830,321       286,058       5.92%



Expense

       Total Salaries and OPE                               947,711             929,232        18,479       1.99%
       Service and Supplies                               4,021,118           3,932,344        88,774       2.26%
       Deprecation                                           72,535              75,800        (3,265)      4.31%
       Capital Outlay                                           -                   -             -

Total Expense                                             5,041,364           4,937,376       103,988       2.11%

       Net Change From Operations                             75,015            (107,055)     182,070      170.07%
       Fixed Asset Disposal Gain/(Loss)                          -                   -            -
       Net Transfers In/(Out)                                    -                   -            -
       Fund Deductions To Reserves                               -                   -            -

Net Increase (Decrease) in Fund Balance                       75,015            (107,055)     182,070      170.07%

Beginning Fund Balance                                    1,039,766           1,156,456      (116,690)     10.09%
     Prior Period Adjustment (1)                                -                (9,636)          -

Ending Fund Balance                                       1,114,782           1,039,765        75,017       7.21%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                    Unaudited - For Management Purposes Only

                                                              71
                                     Oregon State University
                        Service Center Operating Fund - Printing & Mailing
                                        Fiscal Year 2005




                                               Initial                        Favorable         %
                                              Budget            Actual      (Unfavorable)    Variance

Revenue

    Revenue from Outside of OUS           $      611,290    $     634,091   $      22,801          3.7%
    Revenue From OUS Depts                     4,138,898        4,482,288         343,390          8.3%

Total Revenue                                  4,750,188        5,116,379         366,191          7.7%



Expense

    Total Salaries and OPE                       948,248          947,711             537          0.1%
    Service and Supplies                       3,747,425        4,021,117        (273,692)        -7.3%
    Depreciation                                  88,320           72,535          15,785         17.9%

Total Expense                                  4,783,993        5,041,363        (257,370)         -5.4%

    Net Change From Operations                   (33,805)          75,016         108,821        321.9%
    Net Transfers In/(Out)                           -                -               -             -

Net Increase (Decrease) in Fund Balance          (33,805)          75,016         108,821        321.9%

Beginning Fund Balance                           516,224          516,224             -             -

Ending Fund Balance                       $      482,419    $     591,240   $     108,821         22.6%




                               Unaudited - For Management Purposes Only

                                                   72
                                                Oregon State University
                                                    Balance Sheet
                                           Service Center Funds - Motor Pool
                                             As of June 30, 2005 and 2004




                                                                                            Increase
                                                         2005                  2004        (Decrease)   % Change
Assets
  Current Assets
        Cash                                               282,749               994,881    (712,132)      71.58%
        Restricted Cash                                  2,381,428             1,456,651     924,777       63.49%
        Accounts Receivable                                  9,260                 7,661       1,599       20.87%
        Allowance for Doubtful Accounts                        -                     -           -
        Inventories                                         29,229                21,858       7,371       33.72%
        Prepaid Expenses and Deferred Charges                   39                   -            39
        Due From Other Funds                                   -                     -           -
    Total Current Assets                                 2,702,704             2,481,051     221,653        8.93%

  Non-Current Assets
        Fixed Assets                                     4,802,754          5,093,606       (290,852)       5.71%
        Accumulated Depreciation                        (3,951,902)        (4,211,138)       259,236        6.16%
    Total Non-Current Assets                               850,852            882,468        (31,616)       3.58%

       Total Assets                                      3,553,556             3,363,519     190,037        5.65%




Liabilities and Fund Balance
  Current Liabilities
           Accounts Payable                                 40,631                34,486       6,145       17.82%
           Liability for Compensated Absences               21,242                28,654      (7,412)      25.87%
           Deposits                                            -                     -           -
           Deferred Revenues                                   -                     -           -
           Due to Other Funds                                  -                     -           -
     Total Current Liabilities                              61,873                63,140      (1,267)       2.01%

Fund Balance                                             3,491,683             3,300,378     191,305        5.80%

Total Liabilities and Fund Balance                       3,553,556             3,363,518     190,038        5.65%


Working Capital
  Current Assets                                         2,702,704             2,481,051     221,653        8.93%
  Less: Current Liabilities                                 61,873                63,140      (1,267)       2.01%

     Working Capital at End of Period                    2,640,831             2,417,911     222,920        9.22%




                                      Unaudited - For Management Purposes Only

                                                          73
                                             Oregon State University
                              Statement of Revenues, Expenses, and Other Changes
                                        Service Center Funds - Motor Pool
                              For the Twelve Months Ending June 30, 2005 and 2004



                                                                                             Increase
                                                            2005                2004        (Decrease)   % Change
Revenue

       Revenue from Outside of OUS                           35,257             106,716       (71,459)     66.96%
       Revenue From OUS Depts                             1,447,285           1,487,540       (40,255)      2.71%

Total Revenue                                             1,482,542           1,594,256      (111,714)      7.01%



Expense

       Total Salaries and OPE                               394,593             525,700      (131,107)     24.94%
       Service and Supplies                                 657,067             637,884        19,183       3.01%
       Deprecation                                          298,530             391,348       (92,818)     23.72%
       Capital Outlay                                           -                   -             -

Total Expense                                             1,350,189           1,554,932      (204,743)     13.17%

       Net Change From Operations                           132,353               39,324       93,029      236.57%
       Fixed Asset Disposal Gain/(Loss)                      57,952               39,119       18,833       48.14%
       Net Transfers In/(Out)                                   -                    -            -
       NIP Change in Fixed Assets                             1,000                 (943)       1,943      206.04%
       Fund Deductions To Reserves                              -                    -            -

Net Increase (Decrease) in Fund Balance                     191,305               77,500      113,805      146.85%

Beginning Fund Balance                                    3,300,378           3,226,533        73,845       2.29%
     Prior Period Adjustment (1)                                -                (3,654)          -

Ending Fund Balance                                       3,491,683           3,300,379       191,304       5.80%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                    Unaudited - For Management Purposes Only

                                                              74
                                     Oregon State University
                              Service Center Operations - Motor Pool
                                         Fiscal Year 2005




                                               Initial                          Favorable         %
                                              Budget             Actual       (Unfavorable)    Variance

Revenue

    Revenue from Outside of OUS           $       99,357     $      93,209    $      (6,148)         -6.2%
    Revenue From OUS Depts                     1,513,600         1,447,285          (66,315)         -4.4%

Total Revenue                                  1,612,957         1,540,494          (72,463)         -4.5%



Expense

    Total Salaries and OPE                       522,801           394,593          128,208         24.5%
    Service and Supplies                         681,362           657,067           24,295          3.6%
    Depreciation                                 412,174           298,530          113,644         27.6%

Total Expense                                  1,616,337         1,350,189          266,148         16.5%

    Net Change From Operations                     (3,380)         190,305          193,685       5730.3%
    Net Transfers In/(Out)                            -                -                -             -

Net Increase (Decrease) in Fund Balance            (3,380)         190,305          193,685       5730.3%

Beginning Fund Balance                         1,843,727         1,843,727              -             -
   NIP Change in Net Assets                          -               1,000            1,000           -
   Fund Deductions to Reserves                       -            (924,776)        (924,776)          -

Ending Fund Balance                       $    1,840,347     $   1,110,256    $    (730,091)        -39.7%




                               Unaudited - For Management Purposes Only

                                                   75
                                             Oregon State University
                                                  Balance Sheet
                                     Service Center Funds - Surplus Property
                                           As of June 30, 2005 and 2004



                                                                                    Increase
                                                      2005             2004        (Decrease)    % Change
Assets
  Current Assets
        Cash                                           114,579           78,357       36,222       46.23%
        Restricted Cash                                115,291          115,291            (0)      0.00%
        Accounts Receivable                              1,250              275          975      354.64%
        Allowance for Doubtful Accounts                    -                -            -
        Inventories                                        -                -            -
        Prepaid Expenses and Deferred Charges              -                -            -
        Due From Other Funds                               -                -            -
    Total Current Assets                               231,120          193,923       37,197       19.18%

  Non-Current Assets
        Fixed Assets                                    120,176         120,176           -         0.00%
        Accumulated Depreciation                       (118,728)       (117,148)       (1,580)      1.35%
    Total Non-Current Assets                              1,448           3,028        (1,580)     52.17%

       Total Assets                                    232,569          196,951       35,618       18.08%




Liabilities and Fund Balance
  Current Liabilities
           Accounts Payable                             13,937            7,123        6,814       95.67%
           Liability for Compensated Absences           11,892           11,199          693        6.19%
           Deposits                                        -                -            -
           Deferred Revenues                               -                -            -
           Due to Other Funds                              -                -            -
    Total Current Liabilities                           25,829           18,322        7,507       40.97%

Fund Balance                                           206,739          178,630       28,109       15.74%

Total Liabilities and Fund Balance                     232,569          196,952       35,617       18.08%


Working Capital
  Current Assets                                       231,120          193,923       37,197       19.18%
  Less: Current Liabilities                             25,829           18,322        7,507       40.97%

     Working Capital at End of Period                  205,291          175,601       29,690       16.91%




                                   Unaudited - For Management Purposes Only

                                                       76
                                            Oregon State University
                             Statement of Revenues, Expenses, and Other Changes
                                    Service Center Funds - Surplus Property
                             For the Twelve Months Ending June 30, 2005 and 2004



                                                                                            Increase
                                                            2005                2004       (Decrease)   % Change
Revenue

       Revenue from Outside of OUS                          240,078             184,640       55,438      30.03%
       Revenue From OUS Depts                                65,151              66,841       (1,690)      2.53%

Total Revenue                                               305,230             251,481       53,749      21.37%



Expense

       Total Salaries and OPE                               205,314             153,845       51,469      33.46%
       Service and Supplies                                  70,226              56,409       13,817      24.49%
       Deprecation                                            1,580               2,488         (908)     36.49%
       Capital Outlay                                           -                   -            -

Total Expense                                               277,120             212,742       64,378      30.26%

       Net Change From Operations                             28,110              38,739     (10,629)     27.44%
       Fixed Asset Disposal Gain/(Loss)                          -                   -           -
       Net Transfers In/(Out)                                    -                   -           -
       NIP Change in Fixed Assets                                -                   -           -
       Fund Deductions To Reserves                               -                   -           -

Net Increase (Decrease) in Fund Balance                       28,110              38,739     (10,629)     27.44%

Beginning Fund Balance                                      178,630             145,950       32,680      22.39%
     Prior Period Adjustment (1)                                -                (6,059)         -

Ending Fund Balance                                         206,739             178,630       28,110      15.74%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.




                                    Unaudited - For Management Purposes Only

                                                              77
                                       Oregon State University
                             Service Center Operations - Surplus Property
                                           Fiscal Year 2005




                                                Initial                        Favorable         %
                                               Budget            Actual      (Unfavorable)    Variance

Revenue

    Revenue from Outside of OUS            $      190,000    $     240,175   $      50,175         26.4%
    Revenue From OUS Depts                         50,000           65,054          15,054         30.1%

Total Revenue                                     240,000          305,229          65,229         27.2%



Expense

    Total Salaries and OPE                        187,570          205,314         (17,744)        -9.5%
    Service and Supplies                           85,600           70,226          15,374         18.0%
    Depreciation                                    5,656            1,580           4,076         72.1%

Total Expense                                     278,826          277,120           1,706          0.6%

    Net Change From Operations                    (38,826)          28,109          66,935        172.4%
    Net Transfers In/(Out)                            -                -               -             -

Net Increase (Decrease) in Fund Balance           (38,826)          28,109          66,935        172.4%

Beginning Fund Balance                             63,339           63,339             -             -

Ending Fund Balance                        $      139,804    $      91,448   $      66,935         47.9%




                                Unaudited - For Management Purposes Only

                                                    78
                                         Oregon State University
                                              Balance Sheet
                                 Service Center Funds - Desktop Services
                                       As of June 30, 2005 and 2004



                                                                            Increase
                                                  2005           2004      (Decrease)   % Change
Assets
  Current Assets
           Cash                                     70,426           -         70,426
           Restricted Cash                             -             -            -
           Accounts Receivable                         -             -            -
           Allowance for Doubtful Accounts             -             -            -
           Inventories                                 -             -            -
           Prepaid Expenses and Deferred Char          -             -            -
           Due From Other Funds                        -             -            -
     Total Current Assets                           70,426           -         70,426

   Non-Current Assets
           Fixed Assets                                  -           -            -
           Accumulated Depreciation                      -           -            -
     Total Non-Current Assets                            -           -            -

Total Assets                                        70,426           -         70,426




Liabilities and Fund Balance
   Current Liabilities
             Accounts Payable                       31,730           -         31,730
             Liability for Compensated Absences     38,696           -         38,696
             Deposits                                  -             -            -
             Deferred Revenues                         -             -            -
             Due to Other Funds                        -             -            -
       Total Current Liabilities                    70,426           -         70,426

Fund Balance                                             -           -            -

Total Liabilities and Fund Balance                  70,426           -         70,426


Working Capital
  Current Assets                                    70,426           -         70,426
  Less: Current Liabilities                         70,426           -         70,426

       Working Capital at End of Period                  -           -            -




                               Unaudited - For Management Purposes Only

                                                   79
                                        Oregon State University
                         Statement of Revenues, Expenses, and Other Changes
                                Service Center Funds - Desktop Services
                         For the Twelve Months Ending June 30, 2005 and 2004



                                                                                Increase
                                                2005            2004           (Decrease)   % Change
Revenue

     Revenue from Outside of OUS                      -             -                -
     Revenue From OUS Depts                     1,265,266           -          1,265,266

Total Revenue                                   1,265,266           -          1,265,266



Expense

     Total Salaries and OPE                     1,035,779           -          1,035,779
     Service and Supplies                         229,487           -            229,487
     Deprecation                                      -             -                -
     Capital Outlay                                   -             -                -

Total Expense                                   1,265,266           -          1,265,266

     Net Change From Operations                        -            -                -
     Fixed Asset Disposal Gain/(Loss)                  -            -                -
     Net Transfers In/(Out)                            -            -                -
     NIP Change in Fixed Assets                        -            -                -
     Fund Deductions To Reserves                       -            -                -

Net Increase (Decrease) in Fund Balance                -            -                -

Beginning Fund Balance                                 -            -                -
                                                                    -                -


Ending Fund Balance                                    -            -                -




                              Unaudited - For Management Purposes Only

                                                 80
                                     Oregon State University
                         Service Center Operations - Information Services
                                         Desktop Services
                                         Fiscal Year 2005




                                               Initial                                  Favorable          %
                                              Budget                 Actual           (Unfavorable)     Variance

Revenue

   Revenue From OUS Depts                      1,193,146             1,265,266               72,120           6.0%

Total Revenue                                  1,193,146             1,265,266               72,120           6.0%



Expense

   Total Salaries and OPE                      1,012,546             1,035,779              (23,233)          -2.3%
   Service and Supplies                          180,600               229,487              (48,887)         -27.1%

Total Expense                                  1,193,146             1,265,266              (72,120)          -6.0%

   Net Change From Operations                            -                    -                 -              -

Beginning Fund Balance                                   -                    -                 -              -

Ending Fund Balance                       $                  -   $                -   $             -          -




                               Unaudited - For Management Purposes Only

                                                   81
                                                  Oregon State University
                                                      Balance Sheet
                                   Service Center Funds - Miscellaneous Service Centers
                                               As of June 30, 2005 and 2004



                                                                                                         Increase
                                                                   2005               2004 (1)          (Decrease)         % Change
Assets
  Current Assets
        Cash                                                        395,021             301,519                  93,502       31.01%
        Restricted Cash                                             199,322             243,221                 (43,899)      18.05%
        Accounts Receivable                                          18,257               8,942                   9,315      104.18%
        Allowance for Doubtful Accounts                                 -                   -                       -
        Inventories                                                 121,460             113,185                   8,275        7.31%
        Prepaid Expenses and Deferred Charges                        49,193              48,475                     717        1.48%
        Due From Other Funds                                            -                   -                       -
    Total Current Assets                                            783,253             715,342                  67,911        9.49%

  Non-Current Assets
        Fixed Assets                                                527,374             652,570                (125,196)      19.19%
        Accumulated Depreciation                                   (361,483)           (475,115)                113,632       23.92%
    Total Non-Current Assets                                        165,891             177,455                 (11,564)       6.52%

        Total Assets                                                949,144             892,797                 56,347         6.31%




Liabilities and Fund Balance
  Current Liabilities
           Accounts Payable                                          97,726              66,514                  31,212       46.93%
           Liability for Compensated Absences                        55,903              62,108                  (6,205)       9.99%
           Deposits                                                     -                   -                       -
           Deferred Revenues                                        (18,543)             (1,894)                (16,649)     879.28%
           Due to Other Funds                                           -                   -                       -
    Total Current Liabilities                                       135,086             126,728                   8,358        6.60%

Fund Balance                                                        814,058             766,069                 47,989         6.26%

Total Liabilities and Fund Balance                                  949,144             892,797                 56,347         6.31%


Working Capital
  Current Assets                                                    783,253             715,342                 67,911         9.49%
  Less: Current Liabilities                                         135,086             126,728                  8,358         6.60%

      Working Capital at End of Period                              648,167             588,614                 59,553        10.12%


(1) FY 2004 has been restated to exclude Fund 090015 which is now reported with Inter-Institutional Network.




                                          Unaudited - For Management Purposes Only

                                                                    82
                                               Oregon State University
                                Statement of Revenues, Expenses, and Other Changes
                                Service Center Funds - Miscellaneous Service Centers
                                For the Twelve Months Ending June 30, 2005 and 2004



                                                                                                    Increase
                                                              2005              2004 (2)           (Decrease)       % Change
Revenue

       Revenue from Outside of OUS                            568,539             398,590               169,949       42.64%
       Revenue From OUS Depts                               2,181,196           2,051,425               129,770        6.33%

Total Revenue                                               2,749,734           2,450,015               299,719       12.23%



Expense

       Total Salaries and OPE                               1,328,183           1,275,030                53,153        4.17%
       Service and Supplies                                 1,277,397           1,099,214               178,182       16.21%
       Deprecation                                             76,046              99,986               (23,940)      23.94%
       Capital Outlay                                             -                                         -

Total Expense                                               2,681,626           2,474,231               207,396        8.38%

       Net Change From Operations                              68,108              (24,216)               92,324      381.26%
       Fixed Asset Disposal Gain/(Loss)                       (12,470)              (8,781)               (3,689)      42.01%
       Net Transfers In/(Out)                                     -                 (7,650)                  -
       NIP Change in Fixed Assets                              (7,650)               7,650               (15,300)     200.00%
       Fund Deductions To Reserves                                -                    -                     -

Net Increase (Decrease) in Fund Balance                        47,988              (32,997)              80,985       245.43%

Beginning Fund Balance                                        766,069             794,693                (28,624)      3.60%
     Prior Period Adjustment (1)                                  -                 4,373                 (4,373)

Ending Fund Balance                                           814,058             766,069                47,988        6.26%

Notes:

(1) This prior period adjustment was made to adjust the Compensated Absence Liability.


(2) FY 2004 has been restated to exclude Fund 090015 which is now reported with Inter-Institutional Network.




                                       Unaudited - For Management Purposes Only

                                                                 83
                                    Oregon State University
                   Service Center Operations - Miscellaneous Service Centers
                                       Fiscal Year 2005




                                               Initial                         Favorable         %
                                              Budget            Actual       (Unfavorable)    Variance

Revenue

    Revenue from Outside of OUS           $    1,261,285          568,540    $    (692,745)       -54.9%
    Revenue From OUS Depts                       979,175        2,181,196        1,202,021        122.8%

Total Revenue                                  2,240,460        2,749,734          509,276         22.7%



Expense

    Total Salaries and OPE                     1,337,997        1,328,183            9,814           0.7%
    Service and Supplies                         886,944        1,277,397         (390,453)        -44.0%
    Depreciation                                  84,669           76,046            8,623          10.2%

Total Expense                                  2,309,610        2,681,626         (372,016)        -16.1%

    Net Change From Operations                   (69,150)          68,108          137,258        198.5%
    Loss on Disposal of Asset                        -            (12,470)         (12,470)          -

Net Increase (Decrease) in Fund Balance          (69,150)          55,638          124,788        180.5%

Beginning Fund Balance                           522,849          522,849                0           -
   NIP Change in Net Assets                          -             (7,650)          (7,650)          -
   Fund Deductions to Reserves                       -            (24,218)         (24,218)          -
   Fund Additions                                    -             68,118           68,118           -

Ending Fund Balance                       $      453,699    $     614,738    $     124,789         27.5%




                               Unaudited - For Management Purposes Only

                                                   84
Financial Reports for Executive Team
Financial Results for the Month Ending June 30, 2005
Service Centers, fund range 090000 through 099999

Service Center Operations

Service Centers are a financially self-sustaining internal entity existing primarily to
provide services to others within the university. They are considered self-sustaining
operations, in that they are expected to generate revenue from the services that they
provide to cover the expenses incurred to deliver their services. Currently, OSU
operates 16 service centers such as Motor Pool, Printing & Mailing, Telecom, and Inter-
Institutional Network.

Telecom:

Background: This fund records the transactions related to telecommunications
expenses incurred by OSU operations as well as telecommunication services provided
to other OUS entities. Telecom provides and maintains a host of local and long distance
phone services and equipment including cellular phones, pagers, voicemail, data
network connections, wireless network, maintenance of the physical wire plant on
campus, and audio and video conference capabilities. During Fiscal Year ending June
30, 2005, Telecom instituted several changes in organization and service provision.
These changes were instituted to streamline operations and provide services which are
more in line with current and future technologies.

Statement of Revenues, Expenses, and Other Changes

Revenues: Overall revenues decreased $529K (9.98%) from Fiscal Year 2004 to Fiscal
Year 2005. Revenues from external sources decreased $294K (55.51%) and internal
revenues declined $235K (4.92%). Telecom’s decline in external revenues was the
result of a discontinuation of service provision to outside sources. The cellular services
provided to Oregon Health Sciences University were no longer provided. Also causing
the decline, were payments on contracts and services expiring in Fiscal Year 2004 which
were not applicable in Fiscal Year 2005. The decline in revenues from internal sources
were mainly attributed to a one time revenue transfer from OUS for payroll expenses
due to the transfer of service provision from OUS to OSU and a general decrease in
internal billings.

Expenses: Expenses declined $540K (10.59%) for the total operation. Payroll
expenses were reduced by $321K (21.25%) largely as a result of moving four (4) FTE’s
from Telecom to another organization as part of the redesigning of operation noted
above. Services and Supplies saw a slight increase of $49K (1.58%) over Fiscal Year
2004. Further analysis of these accounts shows Supplies up $445K. The analysis
shows Telecom’s purchase of Minor Equipment was up $171K, Non-Capitalized
Computer Equipment increased $22K, Specialized Equipment rose $242K, and Office
Equipment grew $9K. These increases are attributed to the addition of the FlexNet
Network and $61K worth of equipment for the communications system for Reser
Stadium. These increases were mitigated by large decreases in the Communications
account code group. Pager costs were down $12.5K due to the discontinuation of the



                                           85
student service. Cellular, Recurring Charges and Usage Charges were decreased by
$550K. A major portion of this was in relation to OHSU services no longer being
provided. The only increase in the Communications group was in Network Access
charges and was the result of higher fees for the access to Comcast and charges from
the University of Oregon for access to networks. Services expenditures were down
$44K overall. Telecom’s depreciation expense decreased $267K (52.31%) from Fiscal
Year 2004 to Fiscal Year 2005. Equipment assets decreased as a result of write-offs
and disposal of equipment and a decrease in depreciation expense is consistent with
this trend. Infrastructure depreciation also declined in Fiscal Year 2005 as a result of
assets being fully depreciated.

Balance Sheet

Assets: Cash remained steady between Fiscal Year 2005 and Fiscal Year 2004.
Supplies Inventory increased $15K (21.48%) in order to maintain materials on hand for
necessary service provision. Telecom’s fixed assets increased $712K (10.8%) over
Fiscal Year 2004 levels. The increase was due to completion of Infrastructure projects
and Infrastructure projects in progress accounting for an $825K increase. The projects
included Fiber Optic backbone and extension modules. This was offset by a $113K
decrease in Equipment caused by the net amount of write-off and sales of outdated
equipment and purchases of new equipment.

Liabilities: Accounts Payable rose $174K (124.72%) from Fiscal Year 2004 to Fiscal
Year 2005. The increase s attributable to purchases and accruals made at year end.
Compensated Absence Liability decreased $31K (32.17%) over the past fiscal year
reflecting the change in leave balances for employees of this Service Center.

Inter-Institutional Network:

Background: These funds record transactions related to off campus network support
services provided to the Capital Center and OUS central phone system. Services
provided included network support and enterprise system support. Inter-Institutional
Network Services is made up of two separate funds which provide support services to
non-OSU locations (OUS & Capitol Center). These operations were previously
reported by OUS; due to the IT merger during Fiscal Year 2004 between OUS and OSU
these operations are now reported by OSU.

Statement of Revenues, Expenses, and Other Changes

Revenues: Due to the lack of operational activity from the prior year, a quarterly
analysis was done for these two funds. Total revenues were $483K with external
revenues at $112K and internal revenues of $371K. These revenues were inconsistent
over the quarters and will continue to be so in the future due to the nature of the services
provided.

Expenses: Total expenses for these two funds were $856K with payroll at $483K,
Services and Supplies at $343K, and Depreciation of $30K. Quarterly analysis shows a
stable expense environment except for an increase in the 4th quarter. Further analysis
shows this to be due to transactions concentrated in the fourth quarter including
maintenance expenses of $37K, equipment of $12K, maintenance contracts of $34K and
compensated liability expenses of $22K.


                                             86
Balance Sheet

Assets: The cash balance for the year ended June 30, 2005, was $1.45M which was a
decrease of $351K from the previous year. It should also be noted that the cash
balances reported from June 30, 2004, are the result of transfers into OSU as a result of
the merger mentioned in the background statement. The decrease was caused by
funding of operations and the transfers to other OUS institutions. Restricted cash
showed a net decrease of $118K and Cash was down $233K. The reduction in
Restricted Cash is the net result of $150K transferred to PSU and receipt of cash from
OUS of $31K to reserves following the transfer of equipment. Fixed Assets and
Accumulated Depreciation both decreased. OSU transferred telephone switching
equipment to PSU in the amount of $410K. OSU received equipment from OUS in the
amount of $75K for a net decrease in equipment of $334K. The transfers also resulted
in the decreases to Accumulated Depreciation.

Liabilities: Liabilities increased $71K. Accounts payable increased $43K compared to
the end of Fiscal Year 2004. This is the result of general purchases made at year end.
The Compensated Absence Liability for Fiscal Year 2005 was $28K and was based on
current employee leave balances.

ETS Network:

Background: This fund records the transactions related to off campus network support
services provided to the OUS 5th site schools and the Chancellor’s Office. Services
provided included network support and enterprise system support. This operation was
previously reported by OUS; however, due to the IT merger during fiscal year 2004
between OUS and OSU, this operation is now reported by OSU. The ETS analysis was
performed on a quarterly basis due to ETS becoming a service center in Fiscal Year
2005. From this analysis, the majority of activity occurred in the 4th quarter as a result of
transfers from OUS to ETS in order to complete the reporting of ETS by OSU and the
transfer of funds from OSU General Fund index; where the operation was initially
recorded, to this Service Center.

Statement of Revenues, Expenses, and Other Changes

Revenues: ETS revenues for Fiscal Year 2005 were $4.05M and were from internal
OUS sources. Quarterly analysis shows these were posted to the 4th quarter and
consisted primarily of redistributions to this fund from OUS sources and redistribution of
OUS funds that had been previously moved into an OSU General Fund index, in order to
complete transfer of ETS to OSU. Revenues for this Service Center are expected to be
posted on a quarterly basis in the future; however, the agreements have yet to be
finalized.

Expenses: The expenses incurred by ETS for the year ending June 30, 2005,
amounted to $3.54M overall. Payroll expenses accounted for $2.43M, Service and
Supplies in the amount of $934K, and Depreciation of $179K. The anticipated pattern of
future expenses for ETS is for payroll to remain fairly stable over the fiscal period with
Services and Supplies being less consistent. The expected reason for Services and
Supplies variations will be primarily related to Software Maintenance costs.



                                             87
Balance Sheet

Assets: ETS maintains a cash balance of $711K at the end of Fiscal Year 2005 which
consists of $532K of cash and $179K in restricted cash. The cash balance was
accumulated through operations for Fiscal Year 2005. Fixed Assets are reported at
$976K with Accumulated Depreciation at $690K. Fixed Assets analysis shows no
purchases of new equipment were made and this amount is the net of transfers in from
OUS and write-offs of disposed equipment.

Liabilities: Liabilities on June 30, 2005, were $19K. This figure is comprised of
Accounts Payable of $11K and Compensated Absence Liability of $8K. Accounts
Payable is the result of end of year purchases. Compensated Absence Liability is based
on leave balances and represents the current amount of liability.

Printing & Mailing:

Background: This fund records financial transactions related to printing and mailing
services provided primarily to OSU departments. Printing and Mailing also provides
services to customers outside of OSU.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues for Printing and Mailing grew both externally and internally.
External revenues showed an increase of $22K (3.61%) over Fiscal Year 2004. Internal
revenues grew $264K (6.26%) when compared to June 30, 2004. Revenues decrease
in Sales and Mailing services are following nationwide trends away from 1st class mail
and increasing use of E-Mail. Revenues increased in most all other income accounts
with increases in Postage ($14K), Duplicating/Copying ($21K), and Miscellaneous
income ($17K). Printing and Mailing attributes the increases in duplicating income to
increased numbers of copiers placed on campus. Also of note, Printing and Mailing
posted a $170K transfer from E&G funds for the processing of campus daily mail.

Expenses: Expenses for this Service Center increased $104K (2.11%) over the prior
fiscal year. Payroll expenses increased $18K (1.99%),caused mainly by increased OPE
costs. Services and Supplies grew $89K (2.26%) with the majority of the growth being in
Contracted Personnel Services of $30K. This was due to employees on long term
medical leave and the increase in volume of services.

Balance Sheet

Assets: Printing and Mailing’s current assets increased $158K (15.06%) from $1.05M
in Fiscal Year 2004 to $1.21M in Fiscal Year 2005. Cash increase is $178K (82.02%) to
$396K and Restricted Cash remained constant at $524K. Accounts Receivable and
Inventory balances remained steady. Prepaid Expenses decrease of $19K (11.22%) is
due to a change in timing of the purchase of postage. Fixed Assets posted a net
increase of $33K (3.62%) to $943K in Fiscal Year 2005 with the addition and disposal of
equipment.

Liabilities: Liabilities for Printing and Mailing increased $59K (20.36%) in Fiscal Year
2005. Accounts Payable increase of $27K (11.35%) to $271K is attributed to an
increase in accruals at year end for Fiscal Year 2005. Printing and Mailing posted


                                            88
Accrued Undistributed Income of $32K received for OSU Research Magazine print job to
be completed in Fiscal Year 2006.

Motor Pool:

Background: This fund records financial transactions related to vehicle rental and
repair services provided primarily to OSU departments and personnel. Motor Pool’s
(formerly Transportation Services) operation is expected to record substantially different
operating results this year compared to prior year. This is the result of the decision
made at the end of the prior year for OSU to continue to offer this service. Last year,
managed by Facilities Services, Motor Pool had been in a holding pattern while
negotiations occurred with DAS for operational control of the unit. The operation has
since been organizationally restructured under OSU Business Services and has initiated
operational plans to continue as a going concern.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues for the Motor Pool in Fiscal Year 2005 decreased $111K
(7.01%). External revenues were down $71K (66.96%) to $35K and internal revenues
decreased $40K (2.71%) to $1.45M. Analysis of these decreases can be directly
related to the uncertain operation of Motor Pool during the prior year. This caused OSU
departments to use outside sources for services, while services to outside entities
decreased more dramatically. Motor Pool also lacked on-site management of the
operations which has recently been rectified by the hiring of a manager. Motor Pool has,
over the course of Fiscal Year 2005 been actively re-engaging the OSU community and
reorganizing operations to reverse the revenue trend.

Expenses: Motor Pool’s operating expenses decreased $205K (13.17%) to $1.35M in
Fiscal Year 2005. Payroll expenses decreased $131K (24.94%), Service and Supplies
increased $19K (3.01%), and Depreciation decreased $93K (23.72%). The decrease in
Payroll Expense is due to Facilities Services administrative salary charges no longer
being incurred, as the unit now falls under Business Services. Services and Supplies
increase was due to increased oil based product prices, fleet parking fees, and custodial
services costs. These increases were offset by reductions in maintenance costs of
equipment and computer software maintenance.

Balance Sheet

Assets: Motor Pool cash at the end of Fiscal Year 2005 totaled $2.66M, of which
$2.38M is in Restricted Cash, an increase of 8.7%. Restricted cash increased $924K
(63.49%) as Motor Pool began to rebuild reserve amounts to proper levels from
operations. Cash was reduced $712K (71.58%) from Fiscal Year 2004 levels mainly
due to the transfer to reserves. Fixed Assets decreased $290K over the last fiscal year.
This is due to the change of focus from holding pattern to going concern noted in the
background information. The reduction is the net amount of the surplus sale of older
fleet vehicles and the purchase of replacement fleet vehicles. Additionally, Accumulated
Depreciation was also reduced for the same reasons.

Liabilities: Liabilities at June 30, 2005 were $62K and were not significantly different
from the prior year. Accounts Payable increased to $41K (17.82%) and Compensated



                                            89
Absence Liability decreased to $21K (25.87%). The Accounts Payable balance is the
result of purchases made prior to year end for which a check had not yet been issued.

Surplus Property:

Background: This fund records the financial transactions related to the collection and
sale of OSU and other state agency property deemed ready for salvage. Surplus
Property’s customers are both internal and external to OSU. Sales are accomplished via
auction, the “OSUsed” Store, as well as Labtronix and E-Bay sales.

Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues for Surplus Property increased to $305K in Fiscal Year 2005
from $251K in Fiscal Year 2004, an increase of $54K (21.37%). The majority of revenue
for this Service Center is from external entities due to the nature of its business.
External Revenue grew $55K (30.03%) versus a $2K (2.53%) decrease for internal
sales. However, caution should be shown when addressing the income figures for
Surplus Property. Revenue can fluctuate significantly from period to period. This is due
to large ticket items that may or may not be available for sale during a given period as
well as the number of sales held each fiscal year. The period ending June 30, 2005,
saw their sales impacted by the sale of an analyzer for $45K, a back hoe for $25K, and
six vans at $10K each.

Expenses: Surplus Property expenses increased by $64K (30.26%) from Fiscal Year
2004. Payroll Expenses accounts for $51K of this increase. Further analysis shows
staff salaries remained fairly steady, however, large increases were shown in OPE
expenses, Student Pay, and Temporary Employee Pay. Services and Supplies
increased $14K (24.49%) with reasonable increases for supplies, waste disposal,
shipping, and advertising.

Balance Sheet

Assets: Current Assets for Surplus Property showed an overall increase of $37K
(19.18%) from Fiscal Year 2004. Cash increased $36K (46.23%) and Restricted Cash
remained unchanged during the period ending June 30, 2005. As well, Fixed Assets
remained unchanged for Fiscal Year 2005 and should be fully depreciated by early
Fiscal Year 2006.

Liabilities: Liabilities for Fiscal Year 2005 increased $8K (40.97%). Accounts payable
increased $7K (95.67%) due mainly to a large invoice for settling of a sale for City of
Albany. Compensated Absence Liability increase was minimal.

Desktop Services:

Background: This fund records financial transactions related to Desktop Support
Services provided to areas of the campus. Desktop Services was recorded as a
General Fund operation last fiscal year. Due to the increased level of network and
computer support services provided and charged to E&G operations by Desktop
Services it became necessary to establish the new Service Center fund. Since Desktop
services was begun in Fiscal Year 2005, no prior year data is available and so for the
purpose of this report a quarterly analysis was completed.


                                           90
Statement of Revenues, Expenses, and Other Changes

Revenues: Revenues for Desktop Services for the year ended June 30, 2005, were
$1.26M. This includes a $128K general fund subsidy in the 4th quarter to rectify a
negative fund balance. The source of these revenues was from internal OSU
departments. Revenues were inconsistent and fluctuated greatly and due to the
business practice of this operation. The revenues received are based on contracted
amounts at the beginning of the year. Billings and collections for these contracts are
completed at the beginning of the contract period, thus revenue is collected primarily in
the first part of the year. This accounts for the decline in revenue posted to the later
quarters.

Expenses: Expenses for Desktop Services were $1.26M for Fiscal Year 2005. The
analysis of expenses shows Payroll expenses of $1.03M and Service and Supplies
expense of $229K. The quarterly analysis shows consistency in expenses except for the
4th quarter, which saw large increases in expenditures. This upward spike was due to
the redistribution of payroll and services and supplies expenses in order to correctly
reflect the cost of operations. While revenues will be loaded to the front of the fiscal
year, expenses may be loaded to the end of the year due to the direct expensing of
software license renewal costs.

Balance Sheet

Assets: The cash balance at the end of Fiscal Year 2005 of $70K. Quarterly analysis
of cash balances shows large fluctuations between quarters. These fluctuations are the
result of the billing cycle for services provided by Desktop Services and are considered
normal at this time. Desktop Services does not own equipment. Their service is
providing support for users of department owned equipment.

Liabilities: Current Liabilities for Desktop Services are $70K at June 30, 2005.
Accounts Payable balance of $31.7K is the result of year end purchases. Compensated
Absence Liability is $38.7K based on current payroll and staffing levels.

Miscellaneous Service Centers:

Background: These funds include the following operations: Campus ID System,
Survey Research Center, Animal Isolation Lab, Lab Animal Services, Chemistry Stores,
NDSL Skip Trace, Forestry Photogrammetry and Quantitative Science LAN, and
Statistical Services.

Statement of Revenues, Expenses, and Other Changes

Revenues: The Miscellaneous service centers saw increases in both external and
internal revenue. External revenues grew $170K (42.64%) and internal revenues
increased $130K (6.33%) over Fiscal Year 2004 revenues for a total revenue increase of
$300K (12.23%). Total revenues increased in Quantitative Science LAN - $$92K,
Campus ID Center - $40K, Survey Research Center - $110K, Laboratory Animal
Services - $152K, and Chemistry Stores - $25K. The Animal Isolation Lab posted a
decrease in total revenues of $124K, of which $24K was a decrease in external animal
boarding fees and $100K was a decrease in Support for Designated Ops income.


                                            91
Expenses: Salaries and OPE expenses increased $53K (4.17%) for the year ending
June 30, 2005 for this fund group. A further analysis show the bulk of this increase is
due to the funds that had increases in revenues increases payroll and the associated
OPE was increased. This analysis also shows the fund that decreased in revenues also
had a corresponding decrease in Payroll expenses. Services and supplies also
increased $178K (16.21%) over Fiscal Year 2004 levels. Analysis shows no one major
cause for increase. The increase in Services and Supplies appears to follow the same
pattern as payroll expenses and are to be expected considering the increase in
revenues.

Balance Sheet

Assets: Miscellaneous service centers showed an overall increase in cash of $94K
(31.01%) for the year ending June 30, 2005. Quantitative Science LAN, Campus ID
System, Survey Research Center and Statistical Services posted increases of $72K,
$12K, $58K, and $16K respectively. The Animal Isolation Lab and Chemistry Stores
posted decreases in cash of $27K each. The changes in cash can be attributed to
operational changes. Restricted cash for this group decreased $44K (18.05%) with a
$54K decrease in the Campus ID System reserve and an increase of $10K in the Lab
Animal Service reserve. Accounts Receivable increased $9K (104.18%) as a result of
year end billing accruals. Inventories grew a modest $8K (7.31%) in the Chemistry
Store due to increased purchases. Fixed Assets for this group of funds have decreased
an overall $125K (19.19%). Campus ID System decreased a net $108K due to the
write-offs of old software programs and the purchase of a new program. Quantitative
Science LAN decreased $25K and Animal Isolation Lab decreased $8K. These were
also due to equipment write-offs. An increase in Fixed Assets of $16K was posted for
Laboratory Animal Services. Accumulated depreciation decreased $114K due to the
changes stated above in fixed assets.

Liabilities: Accounts Payable for this group of funds has increased $31K (46.93%) in
Fiscal Year 2005 over prior year. This was due mainly to increases in Chemistry Stores
inventory purchases and Laboratory Animal Services in the last month of Fiscal Year
2005. Miscellaneous Service Centers showed a decrease in Compensated Absence
Liability of $6K with negligible changes across the fund group. Deferred Revenues
increased $17K (879.28%) during the year ending June 30, 2005, represented primarily
by the Vet Med program.




                                          92
                                                       Oregon State University
                                                       Designated Operations
                                             For the Twelve Months Ending June 30, 2005

                 Number of    Beginning           Total              Total              Net            Ending           Cash Balance
          Fund    Funds      Fund Balance        Revenue            Expense          Transfers      Fund Balance      at March 31, 2005
AAR Total           1                    -            59,047             59,034                -                13                          13
AFC Total           1                    -            75,007             82,054                -            (7,046)                     (7,046)
AFS Total           2                5,480             6,500              1,330                -           10,649                        9,649
AFW Total           1                4,524                 -              4,076                -               448                         448
AGA Total           1                    -                 -                  -                -                 0                      (1,000)
AGD Total           27             107,869         1,982,084          1,959,525            4,484          125,945                       41,223
AGS Total           1                   42                 -                  -               42                 0                           -
AMB Total           1                    -            16,420              7,826                -             8,594                       8,594
APD Total           1                1,480                 -              1,174                -               306                         463
ASC Total           2                2,308            17,789             17,547                -             2,551                       2,551
ATX Total           1                5,787             9,789              6,006                -             9,570                       9,570
BUS Total           3              105,087         1,017,274            952,034             (279)         170,606                      115,042
CLA Total           12              10,397            96,385             83,864            1,334           21,584                       23,857
DAA Total           1                    -           260,784            324,120                -          (63,336)                     (42,035)
ECE Total           14              54,416           165,459            158,151                -           61,724                       60,639
ECS Total           1                   84                 -                  -               84                 0                           -
EIG Total           1                1,165            23,465             14,503                -           10,127                       10,454
EME Total           4               21,148            18,505             20,305                -           19,348                       19,769
ENE Total           1                2,599                 -                  -                -             2,599                       2,599
ENG Total           3                5,341                 -                  -            1,190             4,151                       4,151
ESE Total           3               18,651           123,143            106,068              (84)          35,809                       26,859
FOF Total           1                  477              (495)                 -              (18)                0                           -
FOR Total           82             364,541           914,819            846,339           (8,512)         441,533                      333,530
GRD Total           1                2,090                 -                  7                -             2,082                       2,082
HHP Total           1                    0                 -                  -                0                 0                           -
HHS Total           12             221,294         1,209,417          1,200,208               (0)         230,503                      248,154
INT Total           17             424,132         2,996,217          3,090,540           33,960          295,849                      424,049
JIS Total           2                  290             2,000              2,000                -               290                         290
KED Total           1                1,662               300             (3,089)               -             5,051                       5,051
KHE Total           2                1,239                 -                 22                -             1,218                       1,206
LCB Total           3                4,856             6,565              2,934                -             8,487                       8,488
MSA Total           5               26,295            58,708             52,595                -           32,408                       32,095
MUN Total           2               14,518           116,021            111,482                -           19,057                       51,385
OAS Total           10              73,325           544,088            517,578                -           99,835                       96,522
OSO Total           1               17,477                 -              4,857                -           12,619                       12,619
PHR Total           3                8,525            11,640             14,139             (258)            6,285                       6,285
QCS Total           4               28,522           140,715            129,077                -           40,160                       77,793
QUB Total           1                4,284                 -              2,393                -             1,891                       2,814
RDR Total           3               15,640            85,869             79,388                -           22,121                       24,521
RMS Total           1                3,092             1,592              4,504                -               179                         179
RNR Total           1                    -           115,949            111,322                -             4,627                      (5,373)
RSG Total           2                1,384            60,755             50,059                -           12,080                       12,480
SBI Total           1                2,745               717              2,323                -             1,138                       1,138
SBP Total           2               14,410                 -              1,220              446           12,744                       12,744
SCI Total           2                7,334             5,330              6,570                -             6,094                       6,094
SGO Total           2               16,224            48,793             52,544                -           12,474                       12,474
SMT Total           1                4,248                 -                  -                -             4,248                       4,248
TCE Total           2               17,873           123,191            123,622            6,132           11,311                       11,651
TDE Total           1                3,426                 -                  -                -             3,426                       3,426
TEX Total           27             372,353         2,170,595          2,064,332           (1,399)         480,015                    1,265,993
VDL Total           1                    0                 -                  -                0                 0                           -
VMD Total           2               11,601           132,888            113,583              149           30,757                        4,350
YIA Total           14             137,804           660,553            691,736                -          106,621                      337,473
Grand Total        292           2,148,040        13,277,878         13,069,903           37,270        2,318,745                    3,279,563



                                         Unaudited - For Management Purposes Only

                                                            93
                                                                   Oregon State University
                                                            Report of Obligations and Debt Service
                                                                      As of June 30, 2005


Debt Obligation                              (1)OSU         OSU Student
(Principal)                   OSU            General        Building Fees        OSU             Housing       Memorial Union      Athletics      Parking
                           XI-G Bonds       XI-F Bonds       XI-F Bonds          SELP           XI-F Bonds      XI-F Bonds        XI-F Bonds     XI-F Bonds

2005-2006                 61,043,811.01      5,767,918.32    26,947,811.66     3,022,856.46    55,514,332.92       116,447.34    55,504,259.06    8,720,407.20
2006-2007                 59,019,497.35      5,518,671.19    26,038,176.87     2,756,311.04    53,607,118.52       103,704.81    54,643,939.19    8,631,560.56
2007-2008                 56,886,513.73      5,273,758.72    25,168,642.89     2,494,567.21    51,648,960.81        91,253.18    53,310,674.52    8,479,914.28
2008-2009                 54,732,307.31      5,031,893.48    24,302,530.24     2,238,609.32    49,702,302.61        79,268.11    51,958,617.90    8,323,750.93
2009-2010                 52,693,187.93      4,792,987.49    23,485,982.67     1,972,647.72    47,827,795.80        67,926.00    50,585,576.86    8,162,385.41
 Thereafter:              50,801,687.81      4,555,487.69    22,701,275.97     1,694,137.34    46,037,217.69        57,447.28    49,176,472.15    7,997,505.49


Debt Service                                   OSU          OSU Student
(Principal & Interest)        OSU            General        Building Fees        OSU             Housing       Memorial Union      Athletics      Parking
                           XI-G Bonds       XI-F Bonds       XI-F Bonds          SELP           XI-F Bonds      XI-F Bonds        XI-F Bonds     XI-F Bonds

2005-2006                  4,969,610.58       627,668.00      2,412,085.00       414,941.30     4,411,756.18        17,952.14   3,486,012.72        478,345.55
2006-2007                  5,208,651.89       627,438.21      2,440,440.14       396,885.40     4,527,932.51        17,980.68   4,168,080.77        566,804.40
2007-2008                  5,348,294.58       626,789.68      2,442,248.74       378,445.03     4,526,448.94        17,968.00   4,171,189.99        568,149.66
2008-2009                  5,275,153.24       625,265.70      2,434,656.40       376,368.00     4,535,871.07        18,022.22   4,175,533.97        571,060.09
2009-2010                  5,117,495.95       627,333.76      2,321,495.57       376,368.00     4,528,062.68        18,046.95   4,177,190.04        569,223.44
 Thereafter:              89,350,253.07     8,103,048.33     41,063,815.82     2,063,077.51    74,337,364.91       103,876.13 85,113,790.27      13,960,457.83
          Total:         115,269,459.31    11,237,543.68     53,114,741.67     4,006,085.24    96,867,436.29       193,846.12 105,291,797.76     16,714,040.97


                         XI-G Bonds - Amount reflects OSU's portion of OUS total liability. OSU is not directly responsible for funding,
                                this debt is managed by OUS.
                         XI-F(1) Bonds - Used to finance self-liquidating and self supporting projects. Each campus
                               is responsible for their share of the debt service.
                         SELP - State Energy Loan Program. A low interest loan program for projects that save energy,
                               administered through the State of Oregon Office of Energy.

                    (1) Environmental Computing Center; Hazardous Waste Facility; Cordley Hall Remodel; Food Innovation Ctr.
                    (2) OSU's debt liability is recalculated and adjusted annually by the OUS Controller's Division.
                        Accordingly, this report does not reflect any additional debt incurred since July 1, 2005.



                                                            Unaudited - For Management Purposes Only

                                                                                   94
Financial Reports for Executive Team
Financial Results for the Six Months Ending June 30, 2005
Education and General Funds 001000-019999
Statewide Funds 030000-039999
Designated Operations 050000-059999
Service Centers 090000-099999
Auxiliary Funds 100000-199999


DEFINITIONS

Educational and General Funds

The Ed and General funds group (fund range 001000 – 019999) includes the
following funds:

      General Operations                 001000
      Repair and Remodeling              004000
      Cost Sharing                       005000
      Endowment Match                    008000
      Summer Session (Credit)            010000
      Continuing Ed (Credit)             016000


General Operations: Fund in which transactions related to instructional activity is
recorded. In addition, it includes records of research activities funded by
unrestricted resources such as state appropriations and student enrollment fees.

Repair and Remodeling: Records of transactions related to non-capitalized
repairs & remodeling projects funded by state appropriations.

Cost sharing: Records of transactions related to the university’s contribution
toward sponsored projects.

Endowment Match: Records of transactions for matching funds if required by an
endowment agreement.

Summer Session: Records of transactions for summer term credit courses.

Continuing Education: Records of transactions related to continuing education
credit classes.




                                         95
Statewide Operations

The Statewide group (fund range 030000 – 039999) includes the following funds:

Agricultural Experiment Stations 030000
Extension Service                034000
Forest Research Laboratory       037000


Agricultural Experiment Stations: This fund group records General Fund
Operations, State Appropriations, Federal Appropriations, Experiment Station
repair and remodeling, and Ag. Experiment Station Cost Sharing.

Extension Service: This fund group records General Fund Operations, State
Appropriations, Federal Appropriations, County Funding, and Extension Service
Cost Sharing.

Forest Research Laboratory: This fund group records General Fund Operations,
Harvest Tax revenue, McIntire-Stennis funds, and FRL Cost Sharing



Auxiliary Operations

The Auxiliary Fund group (fund range 100000 – 199999) includes the following:

Housing:                      101000-103001, 103005, 104001, and 110401-
                            110403
Student Centers & Activities: 110110-110200, 110998, 191601,199999
Athletics:                    120001-120009
Student Health Services:      130001-130002
Parking:                      140001
IS WIN Network:               191231-191232
Misc. Auxiliaries:            103002-103004, 133301, 110101, 150001-191221,
                              192101-194751

Included in Auxiliary funds are their associated Building and Equipment
Reserves, and to the extent allowable (excluding Student Centers & Activities),
associated Plant Funds for current and ongoing Capital projects.

Auxiliaries are considered self-sustaining operations, that is they are expected to
generate revenue from the services that they provide that is sufficient to cover
the expenses incurred to deliver their services. Auxiliaries are organizations that
primarily serve OSU students, faculty and staff.




                                        96
Housing: This fund group records transactions related to Student Housing and
Residences, Housing Dining Services, Cooperative Housing, Family Housing and
Conference Housing Services.

Student Centers &Activities: This Fund group records transactions related to the
Memorial Union, Educational Activities, Recreational Sports, Incidental Fees
Clearing Fund, proceeds from the prior year’s Student Health Insurance Rebate,
Educational Activities Funded International Student Loans, Deposits (to be used
at retail food locations), ASOSU Child Care (funded from a student referendum
for future facility and programs) and MU Mail Boxes.

Athletics: This Fund group records transactions for the non-appropriations
revenues and expenses related the Intercollegiate Athletics.

Student Health Services: This fund group records transactions for Student
Health Services, and Counseling and Psychological Health Services.

Parking: This fund records transactions for Parking Services.

IS WIN Network: These funds include IS WIN Network and IS WIN Program.
Both programs are state-wide resources for university-based broadcasting
activities.

Misc. Auxiliaries: This fund group includes: Forestry and Ag. Experiment Station
Dwelling Rentals, Hatfield Marine Science Center Housing, Child Care Center,
Bookstores at Hatfield Marine Science Center and Cascades Campus, LaSells
Stewart Center, Registrar Copy Services, Library Document Services, Health and
Human Performance Locker Room Service, Faculty/Staff Fitness Programs,
Geology Summer Camp, Physics Equipment Deposits, and Student Health
Center (Pharmacy).



Service Center Operations

The Service Center fund group (090000 – 090000) includes the following

Telecom:                       090004
Inter-Institutional Network:   090015, 090016
ETS Network:                   090017
Desktop Services:              090018
Printing and Mailing:          090374
Motor Pool:                    090372
Surplus Property:              090373
Misc. Service Centers:         090008, 090009, 090012, 090221, 090235, 090254,
                               090259, 090378



                                          97
Included in the Service Center funds are their associated Equipment Reserve
Funds.

Service Centers are a financially self-sustaining internal entity existing primarily
to provide services to others within the university. They are considered self-
sustaining operations, in that they are expected to generate revenue from the
services that they provide to cover the expenses incurred to deliver their
services. Currently, OSU operates 16 service centers such as Motor Pool,
Printing & Mailing, Telecom, and Inter-Institutional Network.

Telecom: This fund records transactions related to telecommunications expenses
incurred by OSU operations as well as telecommunication services provided to
other OUS campuses. Services provided include establishment of
telecommunications lines and connections, as well as long distance service.

Inter-Institutional Network: These funds record transactions related to off campus
network support services provided to the Capital Center and the OUS 5th site
schools. Services provided included network support and enterprise system
support.

ETS Network: This fund records transactions related to off campus network
support services provided to the OUS 5th site schools and the Chancellor’s office.
Services provided include network support and enterprise system support.

Desktop Services: This fund records transactions related to Desktop support
services provided to areas of the campus. Services provided are network and
computer support services.

Printing and Mailing: This fund records financial transactions related to printing
and mailing services provided primarily to OSU departments as well as
customers outside of OSU.

Motor Pool: This fund records financial transactions related to vehicle rental
service provided primarily to OSU personnel.

Surplus Property: This fund records financial transactions related to the collection
and sale of OSU and other state agency property deemed to be ready for
salvage.

Miscellaneous service centers: These funds include the following operations:
Campus ID System, Survey Research Center, Animal Isolation Lab, Lab Animal
Services, Chemistry Stores, NDSL Skip Trace, Forestry Photogrammetry and
Quantitative Science LAN, Statistical Services, and Inter Institutional Telecomm
Network.




                                          98
Designated Operations

The Designated Operations fund group (050000 – 059999) are self-sustaining
operations. This fund group also is sometime referred to as public service
activities. It is for self-sustaining operations providing non-credit classes,
conferences, workshops, seminars, testing, consulting, and special interest
publications to the public


Financial Statements – Line Items

Balance Sheet

This financial statement gives a picture, as of a point in time, of the balances in
asset, liability and fund balance accounts. This is a statement of the financial
position on June 30, 2004.


Assets

Cash: The total cash and cash equivalents available for the fund groups.

Restricted Cash: The total cash available in Building Repair Reserve Fund,
Non Capitalized Repair project funds, and Equipment Replacement Reserve
Funds. These funds while available for current year obligations are restricted for
Building Repairs and Equipment Replacements.

Accounts Receivable: Total amount due to OSU from external sources. This
balance includes billings as of the date of the balance sheet. For the Ed &
General fund group, this balance is comprised primarily of receivables from
current and former students who have chosen to carry debt via OSU’s student
revolving account. An individual student’s debt cannot exceed $2,200 without
having registration sanctions imposed.

For other fund groups, the receivable balance represents amounts billed to both
internal and external customers and recorded as revenue on the Statement of
Revenues and Expenses.

Allowance for Doubtful Accounts: This is an estimate of what management
believes could be uncollectible portions of the accounts receivable (A/R) balance.
Thorough collection activity and the task of reviewing and analyzing A/R
accounts may impose a flux on the pattern of when write-offs occur. The
allowance for bad debt is a tool used by organizations to systematically “smooth”
the impact of having to write-off or forgive debt because the debt is no longer
collectible. The allowance is recorded as a reduction of the A/R asset and write-
offs are processed against the allowance.


                                         99
Oregon Sate University currently uses the balance sheet method for determining
the allowance for doubtful accounts. Annually, at year end, the experience of
write-offs in a particular fiscal year are reviewed in relation to the remaining
allowance balance, and an adjustment is recorded to bring the allowance
balance in line with the what is expected to be the bad debt experience for those
accounts remaining at year end. Currently, the percentage for the allowance is
13% of the year-end SIS receivables.

Beginning FY03, OSU’s analysis for determining an appropriate allowance has
included the segregation of SIS A/R balances into what is expected to be the SIS
A/R funds that will recognize significantly differing percentages of write-offs,
based on actual recovery rates. This segregation and tracking over subsequent
years will result in an allowance analysis and adjustment based on actual
experience within these funds. The goal is to migrate toward a more systematic
approach to identifying the percentage of uncollectible accounts within each A/R
fund, which will result in an increase or decrease of the annual adjustment.


Inventories: The value of expendable supplies purchased and issued by an
organized storeroom. The definition of an organized storeroom is a store for
property that will eventually be used outside of the department. OSU Ed and
General Funds have stores operations in Facilities Services as well as the
College of Veterinary Medicine. There are also stores operations in the Auxiliary
and Service Center Funds groups.

Prepaid Expenses and Deferred Charges: An asset is recorded if an expense
is paid early, before the service or product has been delivered. This can also be
defined as a deferred charge, in that the charges (expenses) are properly
charged to a future period. On the liability side, a similar accrual balance is
established when revenue is received and recorded prior to the revenue being
earned. This is termed Deferred Revenue.

Both of these balances are examples of requirements of accrual accounting, a
method of accounting that requires known expenses to be recorded if the product
or service has been delivered even if the expense has not been invoiced by the
vendor. Conversely, accrual accounting requires an asset and liability to be
recorded if the timing of the payment of expenses precedes the delivery of
service or product, and the timing of the receipt of revenue precedes our delivery
of service or product.


Due from Other Funds: This asset reflects a loan from one fund group to
another fund group. In the balance sheet for the auxiliary fund to which this loan
was made, a liability balance entitled Due to Other Funds is recorded.




                                        100
Bond Proceeds: This asset reflects amounts received for bond issuance
during the course of the current fiscal year. For this report, this value is
comprised of amounts residing in the Debt Service Fund as well as additional
amounts transferred in directly from OUS.

Fixed Assets: Fixed assets are capital assets that have a useful life in excess of
a fiscal year and cost more than $5,000. For this report, the assets recorded in
the operating funds of both auxiliary and service center funds are capital
equipment and buildings. Fixed Assets are comprised of Equipment, Library
Collections, Land, Buildings, Improvements Other Than Buildings, Infrastructure,
and Land Improvements (depreciable and non-depreciable).

Prior to fiscal year 2002 and the implementation of new GASB fixed asset
requirements, the original transaction that recorded a fixed asset purchase was a
debit to a Capital Outlay account and a credit to a cash account. The asset was
then placed on the fixed asset ledger in a combined plant fund, and the only
financial record of that asset subsequent to purchase was a related transfer of
cash to an equipment replacement reserve fund based on a one year’s use of the
value over the useful life of the asset.

With the implementation of GASB34/35, the building and equipment assets have
been recorded in the appropriate auxiliary and service center operating fund with
a value equal to the cost of acquisition.

Accumulated Depreciation: This is an account resulting from the
implementation of GASB 34/35 which requires that the asset values be reported
in financial statements net of accumulated depreciation. This account represents
the accumulated value of annual depreciation costs that have been incurred
since acquisition of the equipment. Each capital equipment asset is assigned a
useful life dependent upon its category. Depreciation is calculated as straight-
line cost per annum and effectively reduces the "book" value of the asset. Book
value, therefore, is equal to cost of acquisition less accumulated depreciation.



Current Liabilities

Accounts Payable: This balance records the balance of amounts invoiced by
vendors for services or products delivered to OSU. For any organization, this
balance changes everyday dependent upon the frequency of vendor payments,
and the timing of vendor invoicing. At OSU, an average of $2.2 million is paid to
vendors on a monthly basis.

Salaries and Wages Payable: At the end of a month, the date of all balance
sheets that are produced at OSU, the payroll for that month has been paid and
distributed. This balance represents salaries and benefits earned by employees,



                                       101
but not yet paid and distributed. 80% of this balance is the result of OSU’s
twelve-month payroll distribution plan for academic employees on 9-month
appointments who choose to spread their salary over a 12-month period.

The remaining portion of Salaries and Wages payable is attributed to Accrued
Shore Leave. Shore Leave accrues for Ship Operations' employees who are
serving aboard a ship at sea and during cruises when the ship is out of homeport
for 1 day or more.

Liability for Compensated Absences: This balance is the value of vacation
time earned, but not taken as of the prior year fiscal year end by OSU
employees. Many OSU employees’ compensation is charged to several different
funds due to their involvement in research, public service via the Statewide
programs, specialized service centers, and many other activities that are
recorded in funds other than the Ed and General funds.

Dependent upon employee classification, OSU policy allows employees to
accrue up to 240 hours or 6 weeks of vacation time. The value of this time plus
the related cost of benefits recorded as of the prior year fiscal year end is equal
to the balance of this liability.

Capital Leases Payable: A capital lease is defined as a lease that meets one or
more of the following criteria and means the lease is classified as a purchase by
the lessee: the lease term is greater than 75% of the property's estimated
economic life; the lease contains an option to purchase the property for less than
fair market value; ownership of the property is transferred to the lessee at the
end of the lease term; or the present value of the lease payments exceeds 90%
of the fair market value of the property.


XI-F Short Term Bonds Payable: Represents the amount of debt due on XI-F
Bonds in the current year. Bonds Payable in the Non Current Liabilities records
the future amount due beyond the current fiscal year.

Deposits: The deposits recorded in the Ed and General Funds balance are
primarily key deposits for faculty and staff. Deposits for the Student Centers &
Activities fund group include ID Card debit card program.

Deferred Revenue: Represents the amount of revenue that is recorded prior to
the revenue being earned.

Non-Current Liabilities

XI-F Long Term Bonds Payable: Represent the amount of long term debt owed
directly by or allocated to OSU to settle debts arising through the retirement of
bond issuances. Short Term Bonds Payable are the amounts due in the next



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year and Long Term Bonds Payable records the future amounts due beyond the
next 12 months.

Fund Balance: This is defined as the excess of assets over liabilities and
reserves.

Working Capital: Working capital is defined as the financial resources available
to finance the day-to-day operations of an organization. It is a good index of
financial stability. Working capital is calculated by subtracting total current
liabilities from total current assets. Current assets are cash and other assets
expected to be converted into cash, sold, or consumed either in one year or in
the operating cycle, which ever is longer. Current liabilities are the obligations
expected to be liquidated either in one year, or in the operating cycle, whichever
is longer.


Statement of Revenues, Expenses and Other Changes

This financial statement gives a picture, over the stated period of time, of the
revenues, expenses and resulting changes in fund balance. This is also often
referred to as the income statement or profit and loss statement.

Revenue

Enrollment Fees: This revenue includes student tuition, mandatory fees, and
course specific fees. The student incidental fees and health service fees are
recorded in the Auxiliary Funds. These fees are recorded directly into the
Student Incidental Fees Clearing fund and the Student Health Service fund.

Actual fees recorded for the period include those fees billed to date for the fiscal
year.

Fee Remissions: This reduction in revenue is defined as a discount to a
student’s fees via an offset by funds from some other source. Examples of other
sources for remissions are OSU and system-wide scholarships as well as special
programs in International Education.

Government Appropriations: Revenue appropriated by the State legislature.
For the Ed and General funds this year, this revenue is allocated by OUS to OSU
on the basis of the RAM Model. OUS personnel control the timing of the
distribution of this revenue. The OUS distribution schedule is published by the
Chancellor’s Office. In fiscal year 2002, the schedule was published several
times due to the vagaries of the legislative response to the State revenue
shortfall. We expect a similar publication schedule for fiscal year 2003.




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For the Statewide funds, this revenue is appropriated and allocated by the State
legislature. In addition, all Statewide funds received appropriations from the
Federal government, and, for Extension, from County governments. All
government sources of revenue are recorded in this balance.

Gifts, Grants, and Contracts: The Education and General fund group along
with the Statewides fund group include only a small portion of this revenue
category for OSU as a whole. The vast majority of the revenue in the Gifts,
Grants, and Contracts category consists of research grants and contracts which
are recorded in restricted funds, and not reported in this report. This revenue for
the Ed and General and the Statewides fund groups consist primarily of indirect
cost recoveries received to date. Portions of these recoveries are distributed to
Statewide operations for indirect costs associated with their grants and contracts.
The distribution of indirect cost recoveries to the Statewide operations is done
annually. In the Auxiliary fund group, this category of revenue consists primarily
of gifts to Athletics via the OSU Foundation.

Interest Income: Interest income to date recorded for Accounts Receivable
balances outstanding for more than 30 days. For the Ed and General fund
group, interest accrues at a rate of 1% per month or 12% annually on student
account receivable balances. For the Auxiliary fund group, balances in
equipment and building reserve funds accrue interest at the current rate for the
State treasury.

Sales and Services: For the Ed and General fund group, this revenue includes
external sources of revenue. Examples for this fund group include payments for
services provided by the College of Veterinary Medicine, lease income on OSU
buildings leased to outside organizations, and external reimbursements of OSU
expenditures.

For the Auxiliary funds, this is a major category of revenue. Examples for
revenue recorded in this category include sales of housing and dining services,
Barometer advertising sales, rental and lease income for the Memorial Union,
ticket sales for Athletics events, charges for health care services provided not
covered by the mandatory student health service fee, and parking permit sales.

For the Service Centers fund group, this category includes fees collected for
services provided to OSU and other OUS universities, and fees collected from
other State agencies.

Other Revenue: Income for the period that does not fit easily into any of the
other categories. In general this balance should not be material. An example of
income that would fall into this category is a non-grant-based reimbursement
from an outside agency.




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Expenses

Total Salaries and OPE: All compensation costs, including OSU paid benefits,
for the period, are included in this balance.

Service and Supplies: This category includes the majority of expense types that
could be considered discretionary, in that unit managers have the ability to
control many of the costs recorded in this expense category. Costs associated
with activities such as travel, conference attendance, office supplies, and outside
services such as advertising, and telecommunications costs are recorded in this
balance.

Capital Outlay: Expenses related to the purchase of capital equipment, library
purchases, and equipment under construction.

Student Aid: Expenses incurred during the period for institutional scholarship
commitments made to students at the beginning of the academic year.

Gain/Loss on Disposal of Fixed Assets: This expense category represents the
difference between actual cash received on the sale of a fixed asset and its net
book value (acquisition cost less accumulated depreciation expense) for an asset
that is disposed of prior to being fully depreciated and for which the cash
received is less than the book value of the assets sold. If a gain is recognized,
the gain is recorded as income.

Total Transfers: Defined as movement of funds between fund groups; these
include both transfers in and transfers out. An example of a transfer out would
be a transfer of funds from an operating fund to the operation’s debt retirement
fund.

Net Increase (Decrease) in Fund Balance: The sum of revenue less expenses
plus the total net transfers. If this balance is positive, it represents a gain in fund
balance for the period of the financial statement and a negative balance
represents a loss in fund balance for the period of the financial statement.

Beginning Fund Balance: The amount of the fund balance at the beginning of
the fiscal year, except for auxiliary operations. Auxiliary operations are reported
fully in compliance with GASB 34/35 reporting requirements. These
requirements include the reporting of plant funds, bond indebtedness, debt
service reserves, capital equipment and building reserves, as well as gift funds.
Capital improvement projects, recorded in plant funds, start and end at any time
of the year and therefore can affect the beginning fund balance at any point
throughout the year.




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Prior Period Adjustments: Specific Prior Period Adjustments are addressed on
a fund by fund basis within the presentation of the financials, as foot-noted.

NIP Change in Fixed Assets: The Net Investment in Plant, Change in fixed
Assets, this account records the values related to corrections, or changes in fixed
assets values. This also records the amounts related to transfers of fixed assets
between funds.


Fund Deduction to Reserves: With the implementation of GASB 34/35 current
year depreciation is recorded as an expense in the operating fund with an equal
amount being recorded as an increase in accumulated depreciation in the
balance sheet account. Fund Deduction to Reserves records the cash moved
from the operating fund to the associated Building Repair or Equipment Reserve
Fund. The recommendation of the OUS Controller is that the cash balance in the
equipment reserve equal the amount of accumulated depreciation recorded in
the operating fund.

Ending Fund Balance: The amount of the fund balance at the end of the
reporting period.


Statement of Cash Flows

This set of financial reports now includes a Statement of Cash Flows. The
primary purpose of the statement of cash flows is to provide relevant information
about the cash receipts and cash payments of the University and summarizes
transactions that affect the cash balance for a given period.

This information will help Management assess the University’s ability to generate
positive future net cash flows, its ability to meet obligations, its need for external
financing and to assess the reason for differences between net income and
associated cash receipts and payments. Also, this statement will help
Management assess the effect on the University’s financial position of both its
cash and non-cash investing and financing transactions during the period.




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These reports have been compiled from the following funds:

General Operations, fund range 001000 through 019999
Statewide Operations, fund range 030000 through 039999
Auxiliary Operations, fund range 100000 through 199999, plus applicable 8XXXXX Plant Funds
Service Centers, fund range 090000 through 099999, plus applicable 8XXXXX Plant Funds
Designated Operations 050000 through 059999

Balance Sheet items are defined by the following account code ranges:
Assets
       Cash: A0901 through A1107
       Restricted Cash: A0901 through A1107
       Accounts Receivable: A3000 through A3803
       Allowance for Doubtful Accounts: A3900 through A3906
       Inventories: A4000 through A4901
       Prepaid Expense and Deferred Charges: A5000 through A5901
       Due From Other Funds: A6000 through A7041
       Fixed Assets: A8000 through A8141
       Accumulated Depreciation: A8500 through A8641

Liabilities
          Accounts Payable: B0100 through B0901
          Salaries and Wages Payable: B1100 through B1902
          Compensated Absence Liability: B1990
          Bonds Payable: B3198 through B3899
          Deposits: B4001 through B4914
          Deferred Revenue: B5002 through B5901
          Due to Other Funds: B6001

Fund Balance
       Net Investment in Plant (NIP): D0020
       Fund Balance: D0010 and D0105 through D0150
       Fund Additions from other funds E0001
       Fund Additions from proprietary fund E0002
       NIP Change in Fixed Assets: E1001
       Fund Deductions from other Funds F0001
       Fund Deductions to Reserves F0002

Operating Statement items are defined by the following account code ranges:
Revenue
        Enrollment Fees: 01101 through 01799
        Fee Remissions: 01910 through 01999
        Government Appropriations: 02110 through 02520
        Gifts, Grants, and Contracts: 03110 through 04999
        Interest Income: 05120 through 05260
        Sales & Services: 06002 through 06998
        Other Revenue: 08001 through 09398

Expense
      Total Salaries and OPE: 10101 through 10953
      Service and Supplies: 20101 through 39937 and
                            60001 through 65199
                            79103 through 79398
                            80500 through 88242
      Capital Outlay: 40101 through 40699
      Student Aid: 51101 through 59101
      Transfers: 91001 through 92501

Originator:
        Balance Sheet, Operating Statement, and Cash Flow - Office of Business Affairs
        Budget to Actual Comparison – Office of Budgets

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