001.8 Financial Reporting Entity

FINANCIAL REPORTING: The PSU financial reporting entity is reported under the heading of University on the Basic Financial Statements. The PSU reporting entity also includes one university foundation which is reported as a discretely presented component unit in the PSU Financial Statements. Organizations that are not financially accountable to PSU, such as booster and alumni organizations, are not included in the reporting entity. PSU is also reported as one of the seven universities that make up OUS and is reported as part of the OUS Annual Financial Report. OUS is a part of the primary government of the State of Oregon (State) and is included as a proprietary (enterprise) fund in the Comprehensive Annual Financial Report issued by the State. These financial statements present only PSU, including the discretely presented component unit described above, and are not intended to present the financial position, changes in financial position, or, where applicable, the cash flows of the OUS as a whole in conformity with accounting principles generally accepted in the United States of America.

SENATE BILL 270: Senate Bill 270 was passed by the Oregon Legislature during fiscal year 2013 and established Portland State University as an independent public body legally separate from OUS as of July 1, 2014. PSU will not be included in the OUS financial reporting entity starting with the fiscal year 2015 financial report. PSU will be included as a component unit in the Comprehensive Annual Financial Report issued by the State starting with the fiscal year 2015 financial report.

ACCOUNTING RECORDS: PSU financial accounting records are maintained in accordance with U.S. generally accepted accounting principles as prescribed in applicable pronouncements of the Governmental Accounting Standards Board (GASB). The financial statement presentation required by GASB No. 35 provides a comprehensive, entity-wide perspective of PSU assets, deferred outflows of resources, liabilities, deferred inflow of resources, net position, revenues, expenses, changes in net position, and cash flows. In preparing the financial statements, significant interfund transactions and balances between university funds have been eliminated. Unless otherwise stated, dollars are presented in thousands. Financial statements of the university foundation are presented in accordance with generally accepted accounting principles prescribed by the Financial Accounting Standards Board (FASB).