2014 ISU Annual Report by Idaho State University

2014 Annual Report

IDAHO STATE UNIVERSITY

Idaho State University conferred 2,476 degrees and certificates in May.

2014 FINANCIAL REPORT

Table of Contents 6

Career Path Internship program offers support to community

Drones help study crop threats in Southeast Idaho

Idaho State community helps one another through Benny’s Pantry

Bengal Pharmacy opens in Arco

Students solve real-world business problems through Bengal Solutions

Researchers study sleep problems in youth

Fulbright scholar drives 15,000 miles home

TriO program: 50 years of helping students succeed

Whorl Tooth Shark Exhibit delights thousands

Researchers study World War I on its centennial

Institute of Rural Health: Providing health care to communities statewide

Report of Independent Auditors

Message from the Vice President for Finance and Administration

Summary Statement of Net Position

Summary Statement of Revenues, Expenses and Changes in Net Position

Summary Statement of Cash Flows

Foundation Statement of Financial Position

Foundation Statement of Activities 2014

Foundation Statement of Activities 2013

Notes to the Summary Financial Statements

On the cover The ISU volleyball team captures the Big Sky title. Idaho State University breaks ground on the new Treasure Valley Anatomy and Physiology Lab. More than 4,000 people attended the annual “Celebrate Idaho State” CommUniversity event highlighting ISU’s programs, including the performing arts. Researchers study the interactions between babies and caregivers in the new ISU Infant Vocal Development Laboratory. In 2014, Idaho State University received a production license from the Nuclear Regulatory Commission to produce medical isotopes.

Idaho State University is committed to excellence, and dedicated to its four core themes: Learning and Discovery, Access and Opportunity, Leadership in the Health Sciences and Community Engagement and Impact.

921 S. 8th Avenue Pocatello, Idaho 83209 isu.edu Produced by the Office of Marketing and Communications

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Message from the President I’ve always maintained Idaho State University attracts a special kind of student and Abbie Steinbrueck is proof. Abbie is working on her master’s degree in physician assistant studies at ISUMeridian. A Steamboat Springs, Colorado resident, she chose our program because of its outstanding faculty, focus on rural medicine and commitment to service-learning. “I discover new opportunities at ISU every day. I love being able to apply what I’m learning in the classroom to the real world,” she told me. As Idaho’s health care University, ISU is committed to serving the citizens of the Gem State and preparing future leaders for tomorrow’s challenges. We provide

critical access to health care across the state, including our 15 medical clinics, which provided more than 50,000 patient visits last year alone.

Our commitment to education includes the creation of new knowledge through ongoing research and economic development. In the past year, ISU has

With the generous support

“Our Bengals are changing the world every day.” – PRESIDENT ARTHUR VAILAS

secured millions of dollars for research ranging from medical isotopes, to traumatic brain injuries, to wildfire management. A Carnegie research high university, Idaho State is at the forefront of research and innovation.

of the state legislature and private donors, construction is under way on the L.S. and Aline Skaggs Treasure Valley Anatomy and Physiology Laboratories in Meridian. The $4 million facility, the first of its kind in Idaho, will provide new opportunities for health-science education and medical research.

2014 FINANCIAL REPORT

Despite challenging economic times, our enrollment remains strong. Our first-time

undergraduate population increased nearly 19 percent this past year. We are also experiencing strategic growth in key areas such as the Early College program, which has seen steady growth over the last five years. Last year, more than 2,100 students took part in this program. As you’ll read in this Annual Report, our Bengals are changing the world every day. From volunteering to clean up the Portneuf River, to introducing children to the magic of the theatre in the nationally acclaimed Stephens Performing Arts Center, to developing data analysis tools for future research, ISU’s impact reaches far beyond Southeast Idaho. Go Bengals!

Arthur C. Vailas, Ph.D. President

Elementary education major Emilee Schepzle teaches reading to students in Mrs. Schatz’s kindergarten/first grade class at Greenacres Elementary. The experience has made Schepzle more confident in the classroom.

Career Path Internship Program Provides Teaching Support for Local Schools W

“There was one moment when they all got it. It reminded me why I wanted to be a teacher in the first place.”

hen junior elementary education major Emilee Schepzle first stepped into the classroom as a tutor three semesters ago, she was a bit nervous. Today, however, she walks in with confidence, and it has made a difference in the lives and learning of the students she works with at Greenacres Elementary School in Pocatello. Schepzle works at the school through ISU’s Career Path Internship (CPI)

Schepzle is one of 30 tutors who are placed in more than 20 elementary and secondary schools and after-school programs in Pocatello, Idaho Falls, Twin Falls and Fort Hall through the CPI program. Together, the tutors offered public school districts more than 4,800 hours of assistance in the classroom during the 2013-2014 academic year,

program, and tutors students in small groups in math and reading. The experience has been rewarding as well as educational, she said. “I remember once, we were working really hard on some math problems, and they didn’t understand,” she said.

and the program has grown during the 2014-2015 year. With as many as 30 students in each classroom, the number of children helped is tremendous, coordinator and assistant lecturer Emma Wood said. In end-of-theyear surveys, teachers praised the program as a way to provide a vital extra set of hands in the classroom, and as a way to help the CPI students learn what a classroom is like before they are given one of their own. “The exposure to the classroom is huge,” Wood said. “It gives them an opportunity, in a sheltered way, to explore opportunities in the classroom before they are put in a classroom on their own.” Although most CPI tutors are education majors, Wood said that many, especially

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those tutoring in secondary schools, are from other disciplines. These tutors can serve as content experts for the students they tutor, and in turn, can learn the joys that come from teaching others. For these tutors, Wood said, the program can serve as a teacher recruitment tool. She hopes that with the experience, tutors in majors such as math will consider teaching, helping alleviate a nationwide teacher shortage.

“It gives them a chance to get into a school environment, and have that exposure to teaching,” she said.

For Schepzle, the classroom experience has been priceless. When she begins her student teaching internship next

“There was one moment when they all got it. It reminded me why I wanted to be a teacher in the first place.” – EMILEE SCHEPZLE JUNIOR, ELEMENTARY EDUCATION

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year, she will already have valuable experience planning lessons, dealing with classroom behavior issues, and working with students of all abilities. “Now I know how to handle certain situations I didn’t know how to handle before,” she said. “Now I can walk into a classroom and feel comfortable. I can just walk in and be ready to work.” Emily Frandsen

Dr. Donna Delparte and graduate student Mike Griffel in the field. Delparte is collecting data that will help farmers address threats to potato crops.

Drones Provide New View of Agriculture Research

“We are working with farmers closely and going through all of the data and the many samples from the field we collected this summer,” said Dr. Donna Delparte, ISU geosciences assistant research professor who is the project director for the $150,000 seed grant, titled “Addressing threats to potato crops using precision agriculture” from the U.S. Department of Agriculture.

daho State University researchers are analyzing the data they collected from unmanned aircraft systems (UAS) this summer to help create new methods of addressing agricultural crop threats in potato fields in Southeast Idaho.

“We want to make sure we are asking the right questions and addressing their concerns,” she added. “Each stage of the growing season has critical points and the UASs can help us document what is happening at those critical stages. If we can identify sick plants early, the growers can address problems early in the growing season.” The advantage of using UAS is the capability to scan large areas of potato fields to identify the impacts of crop pests and nutrient deficiencies. “Our new approach to protect important food crops such as potatoes is using sophisticated sensors on UAS flights to gather information that allows us to determine

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the health of crops,” Delparte said. “Remote sensing technologies offer the potential to protect U.S. food security by providing rapid assessments of crop health over large areas.” An unexpected benefit of this summer’s UAS assessments was documenting the crop deterioration caused by the record rainfalls that occurred in Bingham County in August that destroyed some farmers’ crops. Crop damage was so severe that Bingham County was declared a Primary National Disaster Area by the U.S. Department of Agriculture. “We still have some data analysis to complete, but I think we can really show the deterioration of crops in Bingham County,” Delparte

said.

Driscoll Brothers, Wada Farms, Walters Produce NG Nickell Farms. J.R. Simplot Company is contributing precision agriculture equipment for on the ground surveys to compare to the aerial mapping scans.

ISU’s public partners on this project are researchers from Boise State University, the University of Idaho and the Idaho National Laboratory. Private partners include Empire Aerospace, Advanced Aviation Solutions (ADAVSO), Robert Blair, Blair Farms, Driscoll Farms,

Using the UAS for analyzing crops also has the potential to examine how climate change may affect crop

“Remote sensing technologies offer the potential to protect U.S. food security by providing rapid assessments of crop health over large areas.” – DR. DONNA DELPARTE

production as crop threats expand their range and capacity for long-term impacts into new areas. Once remote sensing techniques using UAS are developed, like the ones being developed for potatoes, they are transferable to similar crops and environments, and can be used throughout the world. One of the primary goals of the research project is to ensure grower involvement in every step of the research. Delparte’s agricultural UAS work has attracted publicity, being featured in a variety of Idaho newspapers and mentioned in USA Today. Delparte was also featured this August in the premier edition of RotorDrone Magazine, along with Dolph Lundgren and Wesley Snipes. Andrew Taylor

2014 FINANCIAL REPORT

Since January, more than 4,700 pounds of food have been distributed to students, staff and faculty members in need, thanks to Benny’s Pantry. ISU student organizations have offered their support by sponsoring numerous food drives.

Benny’s Pantry Helps Rally Idaho State University and Community

Brooks, a senior dietetics student and student manager of the pantry, said that businesses in the community are constantly finding ways to help. She said Idaho State University Credit Union regularly donates by raffling off items and holding food drives. Organizations on campus have also stepped in to help Benny’s Pantry by holding food drives or donating items that help keep the pantry up to food standard codes.

enny Brooks knew she was making a difference at Idaho State University when several families told her that Benny’s Pantry had helped them cut expenses as they were getting themselves and their children ready for a new school year. Benny’s Pantry was established on ISU’s campus in January 2014 and has since distributed more than 4,700 pounds of

food to students, staff and faculty members in need. More than 6,200 pounds of food has been received through donations from the community.

“The support from the community has been amazing,” said Brooks. In just one year, Benny’s Pantry has been successful in more than one way. Brooke Barber, director of orientation, leadership and service, said Benny’s Pantry has been successful by first making the campus aware of the need and second, creating a strong volunteer base. “We are removing a stumbling block for student success,” said Barber. “We have made students and faculty members aware of a need, and it will no longer be a stumbling block.” Benny’s Pantry thrives on volunteers who help the pantry with tasks like inventory, shelf organizing and sorting through food. Brooks said volunteers also

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help with their enthusiasm about the pantry and passing the word on to their friends. “Volunteers are essential to Benny’s Pantry,” said Brooks. “They are all people who care about helping the campus. They want to make a difference at ISU and are willing to give their time to see that happen.” Brooks has also noticed a change in the volunteers who donate their time to the pantry. “Volunteers become more aware that people need this kind of service on campus,” she said. “I notice the volunteers change from the exposure to people who are different from them. It engenders itself to empathy and compassion.” Dr. Laura Vailas, registered dietitian, ISU’s first lady and

member of Benny’s Pantry Advisory Board, wanted to start Benny’s Pantry after hearing stories of students who were having to choose between purchasing educational expenses and food.

good knowing that we are providing these services at our University.” Benny’s Pantry is looking forward to 2015 and the support that will continue to be received from ISU and the community. Benny’s Pantry is also looking to collaborate

“The last think we want is for a student to stop attending school because they can’t afford to buy food and go to school at the same time,” Vailas said. Benny’s Pantry is the first campus food bank in Idaho, and one of about 100 university food banks in the country. “I feel great about being a part of that greater picture of college campuses addressing student hunger,” said Brooks. “It feels

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with the Idaho Falls’ Bennion Student Union Building and the Idaho Foodbank to help minimize student hunger in Southeast Idaho. Melissa Lee, ’14

Bengal Pharmacy Opens in Arco

“This is how small hospitals will survive,” Huerta said.

“We would have to go 90 miles each way,” she said.

In rural communities, it can be difficult to keep small hospitals operating, Huerta says, but he has worked to keep Lost Rivers Medical Center thriving with new partnerships. His hospital now houses an optometrist office, and also offers cardiology services.

Making sure people like Landon receive quality health care is what drives Brad Huerta, ’97, CEO of Lost Rivers Medical Center, a 14bed critical access hospital that serves a geographic area the size of Rhode Island.

One of the most gamechanging opportunities, he says, has been telehealth. Using state-of-the-art communication equipment, Lost Rivers Medical Center is able to offer mental health care, stroke diagnosis and,

n winter, the wind and snow blowing across the desolate highway between Mackay and Idaho Falls can sometimes make even the most seasoned truck driver clutch the wheel a bit tighter. Without a nearby pharmacy, however, Theresa Landon, who moved to the Mackay area as a newlywed more than 50 years ago, driving through dangerous ice and snow would be a weekly necessity for her prescriptions.

through a partnership with Idaho State University, a fullservice pharmacy.

Bengal Pharmacy at Lost Rivers opened this summer, and immediately made a difference for both the hospital and the community, Huerta said. Critical care hospitals are required to have a pharmacy, he said, and when the community’s only pharmacist, Steve Streeper, announced his retirement, the hospital faced the possibility of skyrocketing medication costs. Having a pharmacy for local residents is essential, he said, for both the hospital and the community. “You just can’t have a hospital without a pharmacy,” he said. “It’s like having a car with no tires.”

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In 2014, Bengal Pharmacy LLC, owned by the Idaho State University Foundation, began working with the Lost Rivers Medical Center to develop a plan for continued access to medications. Nationally, since 2006, nearly 300 rural communities, including four in Idaho, have lost their only pharmacy. In a short few months, the pharmacy has already brought thousands of dollars in revenue to the hospital. It has not only ensured continued health care to a community, it has helped to ensure that Lost Rivers Medical Center, the largest employer in Custer and Butte counties, can continue to thrive. “(The partnership) shows ISU cares about communities,” Huerta said. “What they’ve done isn’t just saving a hospital. What they’ve

done is saved an entire community.”

the pharmacist via video. Along with offering critical care to local residents, the pharmacy has given the College of Pharmacy a chance to enhance research opportunities and implement a rural pharmacy residency program, says Dr. Paul Cady,

Bengal Pharmacy is manned by a pharmaceutical technologist and ISU pharmacy residents, with constant video supervision by a licensed pharmacist located at the Bengal

“Having a pharmacy for local residents is essential, for both the hospital and the community.” – BRAD HUERTA, ’97 CEO, LOST RIVERS MEDICAL CENTER

dean of the ISU College of Pharmacy.

Pharmacy on the ISU campus in Pocatello. Clients receive medication prepared under the supervision of a licensed pharmacist, and can receive a private consultation with

2014 FINANCIAL REPORT

“It’s an innovative and costeffective approach, offering critical pharmaceutical care to the community,” he said.

Bengal Pharmacy at Lost Rivers, Idaho’s first full-service telepharmacy, opened to the public in June 2014. The pharmacy gives students handson experience, and community members a chance to receive needed medication in their hometown.

And, for Streeper, a 1979 ISU Pharmacy graduate himself, Bengal Pharmacy has helped him retire with peace of mind, knowing that the community he has grown to love, and the patients he knows by name, will have access to the care they need. “I love the community,” he said. Emily Frandsen

Got a business challenge? Call Bengal Solutions.

hen Bear Lake County leaders wanted to know how a proposed phosphate mine near Paris would affect the region, they turned to Idaho State University’s Bengal Solutions for help.

mine just west of Paris. The company is currently seeking state permits for the Paris Hills Phosphate Project and searching for a buyer for the ore. The mine has the potential to employ up to 350 people, said Ray.

“We wanted them to flesh out information for local businesses … to help them understand the impact of the mine on the community,” said Kathy Ray, the executive director of the 4-County Alliance of Southeastern Idaho (4-CASI). The public agency promotes economic

4-CASI wanted to know the impact on community infrastructure, local businesses and the potential for indirect job growth. Leaders wanted to avoid the stumbling blocks of other boom towns. Would there be enough grocery stores to handle the influx of shoppers, enough

development and job growth in Bear Lake, Caribou, Oneida and Franklin counties. Ray and her team contracted with Bengal Solutions in 2013 after the Canadian company, Stonegate Agricom Ltd., began exploring the possibility of constructing an underground phosphate

classroom space to handle new students? Were local businesses equipped to support the mining industry?

Economic Driver

Founded in 2009, Bengal Solutions is housed in the ISU College of Business. A tool to fuel Idaho’s economy, Bengal Solutions draws on the talents of top-notch MBA and Master of Accountancy students who lend their business expertise to private companies, governments, corporations and nonprofit agencies. “It’s a wonderful collaboration that allows students to get great handson learning and real-world experience and allows businesses the opportunity to get solid business and consulting advice,” said Bengal Solutions Director Kolton Woodbury.

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In the last five years, Bengal Solutions has conducted market research and created business plans, surveys and economic impact reports for close to 100 clients. Fees range from $3,000 to $4,500, a fraction of what comparable studies in the private sector would cost. The money goes back into the program in the form of tuition scholarships and graduate assistantships, Woodbury said.

Here are some of the highlights.

For the Paris Hills Phosphate Project, graduate students prepared an economic impact study, using research models and rigorously analyzing resources in the region. They determined Bear Lake County communities from Montpelier to Bloomington would see a significant boost to local business once the mine was in full production.

• Each year, they’d spend as much as $1.45 million at local grocery stores, creating eight to 10 new jobs. They’d spend another $2 million on transportation costs, which includes household vehicle purchases, fuel and maintenance costs and car insurance.

• Local elementary, middle and high schools could comfortably handle the influx of new students.

• Miners and their families would spend close to half a million dollars a year at restaurants—enough revenue to support a new fast-food chain or two family-owned eateries in the area.

“The report was a good eye opener for the businesses in Montpelier because there was a lot of speculation. You know… ‘was the mine going to be a huge impact or no impact at all?’ This gave them a realistic picture of how they could plan for expansion,” said Ray.

• They’d spend money on medical services, boosting local health care revenues by as much as 12 percent.

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Take it to the Bank Also important was the fact that the economic impact report could serve as a document local businesses could take to lenders when applying for loans to expand their businesses. MBA student Will Anderson was one of six students who worked on the Paris Hills Phosphate Project.

Bengal Solutions gives students the hands-on opportunity to solve realworld business problems.

“I would say Bengal Solutions has been the best part of the graduate program because it’s taking the things you are learning in the classroom and applying them to actual business scenarios where real money is being spent and decisions matter,” said Anderson. As for Ray, she appreciated the “fresh look” Bengal Solutions gave her group. “It was an inexpensive way to get a high-quality report. I’m sure we will be using them again,” she said. Chris Gabettas

Dr. Maria Wong is studying possible links between sleep disturbance in youths and later substance abuse.

Sleep Problems in Youths Linked to Substance Abuse Later

in the ISU Department of Psychology. Wong is in the second year of a five-year, $1.6 million study funded by the National Institutes of Health.

daho State University’s Maria Wong, working with the Portneuf Medical Center Sleep Clinic in Pocatello, is trying to get a more objective measure of the quality of sleep of 8- to 12-year olds to confirm if there is a link between sleep disturbances in youths and later impulse control, depression and substance use. “We want to understand whether sleep problems affect teenagers’ mood, school work and whether they

This link was established in earlier studies that relied on parents reporting whether their children slept well or complained of being tired all the time. When parents reported children didn’t sleep well, there was a higher probability of early use of tobacco, alcohol and other drugs and other high-risk

experiment with tobacco, alcohol or other drugs,” said Wong, professor and director of experimental training

behaviors such as having suicidal thoughts later on in life. “The criticism of these studies is that they don’t have an objective report of sleep,” said Wong, “Now we are trying to obtain objective sleep measures such as EEG and records of movement at wake and sleep times.” Wong is in the process of recruiting 200 study participants in the region and will examine the sleep patterns and habits of rural children through multiple measures of sleep, including self-report by participants, parental ratings and direct observation in clinical settings. Part of the assessment includes spending two nights at the PMC Sleep Clinic. “They take part in interviews and cognitive tests, wear an activity watch and have an

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as mood change, impulse control and substance use among study participants.

“We believe the results of this type of research will have implications for both intervention and prevention programs for adolescent substance abuse.”

Wong leads a team of five collaborators including Dr. Shannon Lynch, Idaho State University, Drs. Kirk Brower, Deirdre Conroy, and Robert Zucker from the University of Michigan, and Dr. Tim Roehrs at the Henry Ford Hospital in Detroit. There are also eight graduate and undergraduate students working as research assistants on the project.

– DR. MARIA WONG EEG (electroencephalogram) test done at the sleep clinic that measures their brain activity during sleep,” said Wong. Researchers believe that sleep problems can affect adolescents’ problem-solving and planning abilities, and can influence mood and their decisions on what activities to engage in. “We believe the results of this type of research will

have implications for both intervention and prevention programs for adolescent substance abuse,” Wong said. “But first we need to understand the basic processes.”

Wong received her grant from the NIH’s National Institute on Alcohol Abuse & Alcoholism and

The researchers will also try to understand how gender, physical development, and perceived stress may change the relationship between sleep problems and subsequent behavior, such

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National Institute of General Medical Sciences. She also received a previous grant from the National Institute on Alcohol Abuse & Alcoholism on a project examining the relationship between sleep and health. Andrew Taylor

A Fulbright’s Long Journey Home

mile drive home with his wife Cana, daughter Dylan, 14, and son Wells, 12.

eing chased by monkeys, sleeping in abandoned rodeo rings, visiting world-renowned national parks and replacing an automobile transmission three times all proved to be part of a Fulbright scholar experience for one Idaho State University professor. ISU faculty and students have received a record number of Fulbright scholar awards over the past few years, including four this academic year and two during the previous academic year.

fixed it up over a matter of months,” Crosby said.

Crosby spent AugustDecember 2013 serving his Fulbright at the Universidad de Concepción in Concepción, Chile where he developed new curriculum on hillslope hazards, studied cycles in river water quality, and then served as a visiting professor on sabbatical through April 2014.

All have incredible stories to tell about their experiences, but their stories would have a hard time topping the one by Dr. Benjamin Crosby, an ISU associate professor of geosciences, who served as a Fulbright scholar in Chile, and then embarked on a 15,000-

“Instead of flying home, we decided it would be way more fun to buy a car and drive back, so we bought a 1985 Volkswagen camper van and

Crosby chronicled his family’s adventures in a blog, jokersinjubilee.blogspot. com. He also worked during his drive home, continuing to write manuscripts, interacting with students and submitting grant proposals from his mobile office. While he was on the road, a study he worked on about 2.7-million-year-old organic soil found two miles under the Greenland Ice Sheet was published in the journal Science and received widespread international publicity, including being ridiculed (lovingly) by Jimmy Fallon on the Tonight Show. During the sojourn, his family lived out of the camper van, taking four months to drive home on a journey most others devote nine months or longer to compete.

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“We didn’t drive every day, all day. We drove slow and avoided night driving on poor roads. We stopped at must-see places like Machu Picchu or Lake Titicaca, and enjoyed all the little adventures along the way whether eating street food in front of cathedrals or getting caught in a celebratory traffic jam after a Colombian World Cup victory,” Crosby said. Positive highlights were many, but a few stood out, such as a morning the Crosby family spent at Torres del Paine, a UNESCO biosphere reserve located near the tip of South America in the Chilean Patagonia region. The family had parked at an abandoned turnout and watched a sunrise “right in front of these beautiful granite spires” while sipping fresh-brewed coffee as glaciers tumbled off the sides of mountains behind turquoise-blue lakes.

“While I was busy taking photos, my son picked up a rock and said ‘look Dad, it’s home’ and it was a little rock perfectly shaped like Idaho,” Crosby said.

Park on Costa Rica’s Osa Peninsula, accessing it via a rough, jungle road which was hours off the nearest paved road. After an “amazing fullday hike along the coast and into the jungle where we were chased by monkeys, saw all kinds of snakes and alligator tracks” Crosby started driving back toward the highway, and the van got a flat tire.

It wasn’t until they reached Central America that Crosby experienced his low point for the trip. The family shipped their van by sea between Columbia and Panama because no road connects North and South America. They sailed the same route via the primitive coral paradise of the San Blas Islands. In Panama, the Crosbys experienced the intensity of the Panamanian jungle.

Fixing the flat was an ordeal in itself – broken jack, seized lugs – but after hours spent changing it, the family drove no more than another quarter mile before the transmission began to fail. Rather than chancing it, Crosby took a chance and returned to the closest village to see if he could find someone to fix the vehicle. He did find a good mechanics shop, but Crosby ended up spending three weeks in the village getting his van working, while his

“It was our first experience camping alone in the jungle with thousands of insects and monkeys screeching and hollering all around us,” Crosby said. Continuing north, the family visited Corcovado National

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family went on to other parts of Costa Rica, traveling with a Czech couple the family had met. It took two weeks to get the transmission fixed the first time, but it burned up again about three miles from the village so Crosby ordered a complete refurbished transmission that was installed within a week. Fixing the transmission put the trip behind schedule requiring the family to drive about 700 miles a day through the remainder of Central America. “I never dreamed I would do anything like this,” Crosby said. “It didn’t even make the bucket-list because it was so unlikely and far-fetched.” Andrew Taylor

Freshman Austin Richards credits the Upward Bound program for helping him be successful in his first year of college.

ISU’s TRiO Program Has Provided 50 Years of Student Support

funded program specifically serves high school students from low-income families, and students from families in which neither parent holds a bachelor’s degree.

o say that freshman Austin Richards’ parents are proud of the work he is doing at Idaho State University is an understatement. “I get a text from my parents every day telling me how proud they are,” Richards, a first-generation college student and nuclear engineering major said. Richards knew he wanted a career in the sciences after an engineer from the Idaho National Laboratory spoke to his middle school class,

In its 50 years at Idaho State University, the TRiO Upward Bound program has provided more than 6,500 students with a support system to help them succeed in a college environment. Through the program, high school students who are potential first-generation college students receive tutoring, field trips and college

but it was a visit from an Idaho State University TRiO Upward Bound Math Science advisor that sealed the deal. Through the TRiO Upward Bound Math Science program, first-generation college students like Richards can get the assistance they need to succeed in a college environment. The federally

preparatory classes. Each summer, they receive a true college experience when they stay on the ISU campus for seven weeks, taking classes and participating in campus activities. Classes offered include dual enrollment courses, so students can get a head-start on their college careers. The program has seen tremendous success. In 2013, 100 percent of Upward Bound Math Science students and 56 percent of Upward Bound seniors were enrolled in postsecondary education. All students enrolled in the programs passed Idaho’s educational standards, and 100 percent of students in the Upward Bound Math Science program and 84 percent of students in the Upward Bound program graduated with dual enrollment courses completed.

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The TRiO programs were the first national college access and retention programs to address social and cultural barriers to education in America. In 1965, the TRiO Upward Bound programs were launched across the United States. Idaho State University was one of the originally funded programs, making it one of the oldest TRiO Upward Bound programs in the nation. The ISU Upward Bound/ Upward Bound Math Science grants serve 12 high schools in southeastern Idaho: American Falls, Aberdeen, Pocatello, Century, Highland, Sho-Ban, Snake River, Blackfoot, Firth, Shelley, Bonneville and Idaho Falls. “The TRiO programs at Idaho State University, across Idaho and across the country cater

“I get a text from my parents every day telling me how proud they are.” – AUSTIN RICHARDS FRESHMAN, NUCLEAR ENGINEERING

to the services needed in each community they serve,” said Sari Byerly, Upward Bound director.

internship in a laboratory while still in high school, which solidified his decision to study nuclear engineering. He appreciates the fact that he came to campus with a support system already in place.

Richards says he has benefited from the program’s scholarship advice and free tutoring programs. He received help with ACT preparation, and has continued to receive support during his first year in college. Richards also was able to do a summer

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“There is a sign in our TRiO office that a student made years ago, even before my time at ISU,” Byerly said. “It says ‘TRiO touches a few, but reaches many.’ There is nothing more accurate.” Emily Frandsen and Aaron Kirkham, ’15

Whorl-Tooth Shark Exhibit Hits the Road

worked with a team of fellow scientists to unlock the secrets of Helocoprion fossils found in Idaho’s many phosphorus mines.

he spiral-jawed sharks exhibit that made Idahoans drop their jaws has now begun its journey to give residents of other states that same feeling of awe that comes from getting a glimpse at one of the bizarre creatures that once existed on Earth. The “Whorl Tooth Sharks of Idaho” exhibit that was featured last year at Idaho State University’s Idaho Museum of Natural History has begun traveling the country, starting with Tacoma, Washington.

The fossils, spiral patterns resembling the fossilized Nautilus shell only with teeth, had puzzled scientists for decades. There were numerous theories as to where on the animal the whorl belonged and how it was oriented, some placing it on the upper jaw, some on the lower jaw, some on the tongue. There were even those who thought the spiral belonged on the tail.

Washingtonians have now been able to have the experience of seeing the species Helicoprion in its anatomically correct form for the very first time. Dr. Leif Tapanila, an associate professor and chair of the ISU Department of Geosciences,

Due to Tapanila’s research, involving high-resolution CT scans of the fossil, the mystery has finally been solved. Working with Ray Troll, an artist who has been obsessed with the creature for years, Tapanila has been able to figuratively bring the creature to life by giving us the very first accurate images of Helicoprion. The exhibit’s name has changed slightly, from “The Whorl Tooth Sharks of Idaho” to “Buzz-Saw Sharks from Long Ago,” but the exhibit itself remains much the same. Fossils are displayed and Ray Troll’s art lines the walls, as does a life-sized sculpture made by Gary Staab, a sculptor friend of Troll’s. “It’s as much an art exhibit as it is a science exhibit,” said Tapanila, “It’s a great thing when science and art

IDAHO STATE UNIVERSITY

help each other like this.” He then went on to describe the process of working with Troll. For the purpose of his drawings, Troll would ask Tapanila a very specific question about how the shark would look, and this would spur them to do even more research to find an answer. The exhibit was featured at the Point Defiance Zoo and Aquarium in Tacoma, which gets about a quarter of a million visitors every year. It was a part of their “Sharkmania!” show, which ran from August through December. Tapanila hopes that the exhibit will travel the U.S. and bring attention to scientific research being done at ISU. “A lot of people are doing really good stuff around this University and we really want as many people as possible to see this exhibit

and get greater visibility for Idaho State University research,” Tapanila says, “It can be a really cool thing when research and publicity mesh like this.”

ask me ‘Why haven’t I heard of it before?’ to which I reply, ‘Well you’re seeing it now!’” The likely reason why most people have never heard of it is the lack of a fixed explanation of where the

Tapanila says that reactions

“It’s a great thing when science and art help each other like this.” – DR. LEIF TAPANILA to the exhibit were great in Tacoma. He visited it to do some guided tours, and says that people, especially kids, love seeing the fossils and the artwork.

spiral-tooth fossil fits on the animal. Now that Tapanila and his team have solved that riddle, the animal can be appreciated in full. Tapanila predicts that now that people know what Helicoprion really looks like, the media opportunities for it will grow. “We got Shark

“The number one thing that people say to me is ‘Is this real?’” Tapanila said. “Then when I explain that it is, they

2014 FINANCIAL REPORT

Week in Canada this year, and hopefully we will make it to Shark Week in the U.S. next year.” Tapanila is hopeful that the Discovery Channel will consider airing a program on Helicoprion for Shark Week. “I wish that they wouldn’t air things like the Megaladon program. I don’t see why they need to make things up when there is so much cool stuff out there that’s real—like our Helicoprion.” It is evident from the excitement in his voice that working on this project has been a great experience for Tapanila. “Personally, this is the reason why I got into this field and why it’s so encouraging to stay in it. This is the future of paleontology, I think.” Thomas Attebery, ’16

New Insight 100 Years After World War I Began

daho State University history professor Dr. Erika Kuhlman is hoping her research of women in World War I will help people look at the Great War differently during its centennial anniversary. “In looking at women in World War I, it is broadening people’s understanding of war,” said Kuhlman who has authored four books about women and World War I. “It is also encouraging people to look at sides of war that

most people don’t think about.” Kuhlman recalls her favorite story of women and World War I and how Jeannette Rankin was the first woman elected to the U.S. Congress. Rankin was from Montana, and was the first woman elected after suffrage was won in that state. She said people were skeptical of whether or not Rankin could handle being in the man’s world of government. Stories have been told that Congressman Fiorello La Guardia was asked if Rankin was crying

when she voted against the war, and he replied that he could not say because he could not see through his own tears. Kuhlman has studied women and their views on the U.S. entry into World War I. She said women had two different views about the war. Many women did not want to see the fruits of their labor hurt or killed. Other women thought it was their duty to be equal to men. They proved their equality by being nurses, driving ambulances or knitting socks for soldiers. “These women thought that if they could get politicians to see that women didn’t want their children to be killed in war that they would think twice about sending their husbands to battle,” said Kuhlman. Dr. Justin Dolan Stover, assistant professor of history, has researched World War I and how people are remembering the war during

IDAHO STATE UNIVERSITY

Drs. Erika Kuhlman and Justin Stover use historical documents in their World War I research.

its 100th anniversary. His research focuses on modern Ireland and how World War I was instrumental to Irish history. He also examines nationalism, violence and trauma as it relates to Ireland and World War I. Stover said that reflecting on the war 100 years later helps society to make broader connections between current political and territorial issues in the Middle East, Central Europe and places in Africa. He also observes that people around the world are honoring the war in traditional ways, such as attending battlefields, monuments and public commemorations, while also coming to recognize it in non-traditional ways including film, websites and social media, including Twitter.

Kuhlman is studying German war veterans who traveled to America, and their motivation for coming to the country that was against them in the war. Kuhlman’s

“There is quite a bit going on for historians and the general public in Europe so far,” said Stover. “The public has really enjoyed this attention toward the Great War historians have

“From 2014 to 2018 will be very important years to teach, to learn, and to reflect on World War I.” – DR. JUSTIN DOLAN STOVER used the commemorations to reinvent their old research.”

grandfather was one of these men.

Stover expects more U.S. commemorations around 2017, the centenary of the U.S. entry in World War I.

Kuhlman’s books are titled: “Of Little Comfort: War Widows, Fallen Soldiers, and the Remaking of the Nation after the Great War,” “A to Z of Women in World History,” “Reconstructing Patriarchy

Kuhlman and Stover are still working on projects that relate to World War I.

2014 FINANCIAL REPORT

after the Great War: Women, Gender, and Postwar Reconciliation between Nations,” and “Petticoats and White Feather: Gender Conformity, Race, the Progressive Peace Movement, and the Debate Over War, 1895-1919.” Stover is planning an art gallery exhibition for 2015 that will showcase prints from a French magazine showing the 12 stages of war, as seen during World War I. He is also organizing a class that will focus directly on the war and its global impact 100 years later. “From 2014 to 2018 will be very important years to teach, to learn, and to reflect on World War I,” said Stover. “Overall, it’s a very exciting time to be a historian.” Melissa Lee, ’14

The Institute of Rural Health at Idaho State University provides action plans and resources for communities across the Gem State.

The Institute of Rural Health: Improving Lives Through Research and Service for 25 Years

action plans, tools and programs to make it possible for communities to connect to resources they once thought elusive.

magine living in a community where you’re isolated by mountains and desert, where there are too few community and health resources to serve you and travel to larger cities can take hours. That’s reality for thousands of people living in the Gem State. But thanks to Idaho State University’s Institute of Rural Health (IRH), underserved Idahoans are getting the health and community services they need.

“We are called the Institute of Rural Health, but a lot of what we do is ‘population’ health so our reach extends to everyone,” says Dr. Neill Piland, who’s been with the Institute for 13 years, nine as director.

The IRH celebrates its 25th anniversary this year— representing a quarter century of research, teaching and service. Since its creation in 1989, the IRH has brought $40 million in federal, state and private funding to ISU. With that money, IRH researchers have developed

IRH projects— such as telehealth, traumatic brain injury and suicide prevention—have earned national accolades while other initiatives have

strengthened local economies and made Idaho communities safer.

A Leader in TBI Research

On June 1, the Health Resources and Services Administration (HRSA) awarded the IRH a $1 million grant to continue its work with traumatic brain injury survivors and their families. Those dollars are already in use in the Treasure Valley, helping to screen adults for TBI and connecting them to the resources they need for treatment. “Idahoans are at a higher risk for brain injury accidents because of the rural nature of the state,” said the grant’s principal investigator Russell Spearman, a senior research associate in the IRH office at ISU-Meridian.

IDAHO STATE UNIVERSITY

Spearman notes that more than 32,000 Idahoans are living with a severe TBI caused by head trauma sustained in car crashes, military combat, sports and falls. Since 2000, HRSA has awarded the IRH more than $3.1 million in grants for TBI study and support. In 2006, the agency designated ISU the state’s lead agency for TBI research and services, citing the IRH’s success in developing a statewide TBI network.

Addressing Suicide and Mental Illness

The IRH has also taken a lead role in helping Idaho address youth suicide, erase the stigma of mental illness, and assist rural and tribal communities in the treatment of child traumatic stress.

According to the Suicide Prevention Network of Idaho, suicide is the second leading cause of death for Idaho teens and young adults. Through the Better Todays, Better Tomorrows initiative, the IRH and its partners have trained more than 10,000 parents, educators and health professionals to recognize the signs of mental illness and the importance of early intervention.

by the Substance Abuse and Mental Health Services Administration.

Economic Health

Some IRH initiatives improve health through service and economic development. That’s the story of AmeriCorps, a federally funded program housed in the IRH since 2000. AmeriCorps at ISU has provided more than 20,000 Idahoans with scholarships, education stipends, skills training and community service jobs, according to program director and senior grant project coordinator, Barbara Cunningham.

When mental health advocates were setting up a nationally certified suicide prevention hotline in Idaho, they turned to IRH experts for guidance. Dr. Beth Hudnall Stamm, a nationally renowned researcher and a former IRH director, oversaw many of the suicide prevention projects, including a $2.4 million child traumatic stress grant awarded to IRH

AmeriCorps participants earn a small paycheck by working for community nonprofits which they pump back into the economy.

Making Communities Safer In 2007, the IRH received a three-year $3.86 million grant to prepare communities to handle natural disasters, hazardous spills and bioterrorism attacks. The IRH—through the Idaho Bioterrorism Awareness and Preparedness Program— trained more than 7,500 health care workers in Idaho, using distance learning technology to reach hundreds of workers in remote areas and tucked away in busy hospitals. Piland says the IRH has served Idaho and the nation well for 25 years and he’s honored to be a part of it. “It’s been a privilege to work for an organization where you feel you are making a contribution to people’s lives,” he says. Chris Gabettas

2014 FINANCIAL REPORT

The $34 million L.E. and Thelma E. Stephens Performing Arts Center was recently ranked No. 4 on the list of “Most Amazing University Performing Arts Centers” by the national website bestvalueschools.com.

IDAHO STATE UNIVERSITY

2014 FINANCIAL REPORT

IDAHO STATE UNIVERSITY

Message from the Vice President It is with great pleasure that I can report that Idaho State University continues to improve its strategic financial position, while maximizing educational excellence and student success. The University has made concentrated efforts to strategically align expenditures and, as a result, has produced positive operating results. ISU continues to advance a culture of fiscal responsibility and effective financial management, which is essential for improving student opportunities and increasing access to a highquality education. Standard & Poor’s Ratings Services affirmed ISU’s ‘A’ outstanding debt ratings, citing a healthy overall financial profile and strong balance sheet with limited debt. Our year-end

financial results reflect an $18.2 million improvement in the University’s net position, despite continued financial pressures and limited growth prospects for the U.S. higher education sector. Key financial ratios evaluating the institution’s overall financial health are measuring significantly above industry benchmarks demonstrating the University’s ability to operate within available resources, manage its debt strategically, and position itself to invest in mission-critical initiatives. In recognition of our shared financial success this year, the University is reinvesting almost $7 million in a wide range of initiatives across the campuses to benefit faculty, staff and students.

increases and intends to continue to do so. Fiscal year 2014 had the lowest tuition and fee increase for ISU in 24 years. Additionally, the University proposed and received approval for a 3.5 percent tuition and fee increase for fiscal year 2015, the lowest increase in 26 years. ISU is and remains extremely competitive in tuition and fees, even after the increase, which is essential in enabling the University to balance its budget and continue to provide quality educational opportunities to students. In continued recognition of the dedicated work and contributions our University team members have made, the institution was again able to provide an average 2 percent merit-based compensation increase for faculty and staff. The

The University has been progressively decreasing the rate of tuition and fee

2014 FINANCIAL REPORT

University has also made special efforts to address areas of pay inequity and has increased the minimum entry level and hourly pay rates for hourly employees. These efforts will help enhance the institution’s ability to recruit and retain high performing faculty and staff while improving opportunities for employees in lower pay grades to earn a livable wage. This year has been one of great successes and we are excited to once again highlight the people and opportunities at Idaho State University. We all continue to work diligently toward maintaining and achieving strong performance in the coming year and further advancing the vision and mission of Idaho State University!

James A. Fletcher, M.B.A. Vice President for Finance and Administration

Summary Statement of

Net Position

ASSETS CURRENT ASSETS Cash, cash equivalents, and cash with Treasurer Investments Student loans receivable Accounts receivable and unbilled charges, net Due from state agencies Other current assets TOTAL CURRENT ASSETS

2014 2013 Year Ended June 30 $104,100,984 20,058,469 301,896 13,695,988 3,055,426 1,538,822 $142,751,585

$97,037,245 5,003,471 279,410 10,723,257 5,940,884 1,161,234 $120,145,501

NONCURRENT ASSETS Student loans receivable, net Assets held in trust Prepaid bond insurance costs Property, plant, and equipment, net Other long-term assets TOTAL NONCURRENT ASSETS

1,207,550 287,420 92,684 179,018,262 24,000 180,629,916

1,288,709 280,727 99,951 185,999,743 62,000 187,731,130

TOTAL ASSETS

323,381,501

307,876,631

566,757

629,729

LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities Due to state agencies Accrued salaries and benefits payable Compensated absences payable Deposits and funds held in custody for others Unearned revenues Current portion of long-term obligations TOTAL CURRENT LIABILITIES

4,257,844 371,902 10,807,184 4,911,522 1,130,973 6,366,127 5,538,204 33,383,756

3,428,744 803,089 10,315,434 4,782,004 1,033,636 5,574,545 5,570,573 31,508,025

NONCURRENT LIABILITIES Other post-employment benefits payable Notes and bonds payable TOTAL NONCURRENT LIABILITIES

7,423,000 51,627,041 59,050,041

6,742,000 56,972,764 63,714,764

TOTAL LIABILITIES

92,433,797

95,222,789

29,795

34,760

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOW OF RESOURCES NET POSITION Invested in capital assets Restricted, expendable Unrestricted

123,062,611 5,267,523 103,154,532

TOTAL NET POSITION

$231,484,666

124,561,381 4,581,880 84,105,550 $213,248,811

45%

53%

Net Position, $231.5M Invested in capital assets 53% • Unrestricted 45% • Restricted, expendable 2% The information in the Summary Statement of Net Position is derived from Idaho State University’s June 30, 2014 audited financial statements. The audited financial statements and related notes can be viewed online at isu.edu/finserv/account/ISUSingleAudit2014&SEFA.pdf

IDAHO STATE UNIVERSITY

Summary Statement of

Revenues, Expenses and Changes in Net Position OPERATING REVENUES Student tuition and fees, net Federal grants and contracts State and local grants and contracts Private grants and contracts Sales and services of educational activities Sales and services of auxiliary enterprises Other TOTAL OPERATING REVENUES

2014 2013 Year Ended June 30 $80,067,373 8,267,766 10,964,430 7,409,810 6,757,178 13,507,916 3,560,921 $130,535,394

$73,937,311 9,416,032 11,693,989 9,912,398 6,933,778 13,737,710 3,404,559 $129,035,777

OPERATING EXPENSES Personnel costs Services Supplies Insurance, utilities and rent Scholarships and fellowships Depreciation Miscellaneous TOTAL OPERATING EXPENSES

143,971,434 24,862,319 11,891,858 7,466,242 14,302,237 12,781,070 4,684,948 219,960,108

141,146,294 27,050,947 12,773,653 7,375,222 16,851,589 12,914,220 5,177,497 223,289,422

OPERATING LOSS

(89,424,714)

(94,253,645)

NONOPERATING REVENUES (EXPENSES) State appropriations - general education Other state appropriations Title IV grants Gifts Net investment income Amortization of bond insurance costs Bond issuance costs Interest on capital asset related debt net of capitalized NET NONOPERATING REVENUES

65,261,000 17,157,526 21,120,080 5,994,344 107,819 (7,267) - (2,068,697) 107,564,805

62,631,800 16,832,047 24,104,048 5,484,315 60,485 (9,539) (931,975) (2,354,492) 105,816,689

INCOME BEFORE OTHER REVENUES AND EXPENSES

18,140,091

11,563,044

OTHER REVENUES AND EXPENSES Capital gifts and grants Gain or (loss) on disposal of fixed assets Net other revenues and expenses INCREASE IN NET POSITION

- 95,764 95,764 18,235,855

20,699 (329,069) (308,370) 11,254,674

213,248,811

201,994,137

$231,484,666

$213,248,811

NET POSITION, beginning of year NET POSITION, end of year

1.6%

2.5%

2.8%

5.6%

8.8%

11.1%

34.3%

33.3%

Operating and Nonoperating Revenues, $240.3M Tuition and fees 33.3% • State appropriations and DPW 34.3% • Grants and contracts 11.1% • Title IV grants 8.8% • Auxiliary enterprises 5.6% • Sales and services of educational activities 2.8% • Gifts and capital grants 2.5% • Other 1.6%

Personnel costs 64.9% • Services 11.2% • Scholarships and fellowships 6.4% • Depreciation 5.8% • Supplies 5.4% • Insurance, utilities and rent 3.3% • Other expenses 3.0% The information in the Summary Statement of Revenues, Expenses and Changes in Net Position is derived from Idaho State University’s June 30, 2014 audited financial statements. The audited financial statements and related notes can be viewed online at isu.edu/finserv/account/ISUSingleAudit2014&SEFA.pdf

2014 FINANCIAL REPORT

3.0%

3.3%

5.4%

5.8%

6.4%

11.2%

64.9%

Operating and Nonoperating Expenses, $221.9M

Summary Statement of

Cash Flows

CASH FLOWS FROM OPERATING ACTIVITIES Student fees Grants and contracts Sales and services of educational activities Sales and services from auxiliary enterprises Other operating revenue Collection of loans to students Payments to and on behalf of employees Payments to suppliers Payments for scholarships and fellowships Loans issued to students NET CASH USED BY OPERATING ACTIVITIES

2014 2013 Year Ended June 30 $69,376,114 28,326,490 6,484,515 13,450,332 3,483,125 391,851 (139,064,154) (44,139,597) (7,045,016) (327,196) $(69,063,536)

$64,882,664 31,362,290 5,851,796 13,659,952 3,337,962 399,581 (137,160,026) (51,480,899) (9,965,207) (302,790) $(79,414,677)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State appropriations Gifts Title IV grants Agency account net of receipts and payments Direct lending net of receipts and payments NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES

80,988,258 5,218,221 20,923,272 (1,860,461) (552,058) 104,717,232

76,948,534 4,870,217 24,148,376 162,847 (21,355) 106,108,619

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Purchases Proceeds from sale of assets Proceeds from advance funding of debt Cost of issuance for advance refunding bonds Principal paid on capital debt Interest paid on capital debt NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES

(6,391,145) 134,715 - - (4,965,639) (2,423,142) (13,645,211)

(7,646,005) 273,657 (266,800) (5,050,567) (2,487,762) (15,177,477)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sales and maturities of investments Investment income NET CASH USED BY INVESTING ACTIVITIES

(21,630,792) 6,630,792 55,254 (14,944,746)

(5,000,000) 54,010 (4,945,990)

NET INCREASE IN CASH AND CASH EQUIVALENTS

7,063,739

6,570,475

CASH AND CASH EQUIVALENTS, beginning of year CASH AND CASH EQUIVALENTS, end of year

97,037,245 $104,100,984

90,466,770 $97,037,245

The information in the Summary Statement of Cash Flows is derived from Idaho State Universityâ&#x20AC;&#x2122;s June 30, 2014 audited financial statements. The audited financial statements and related notes can be viewed online at isu.edu/finserv/account/ISUSingleAudit2014&SEFA.pdf

IDAHO STATE UNIVERSITY

Summary Statement of

Financial Position Idaho State University Foundation ASSETS Cash and cash equivalents Cash held pursuant to bond requirements Promises to give, net Life insurance cash surrender value Inventory Miscellaneous receivables Capitalized bond issuance costs, net Property, Plant and Equipment Goodwill Donated land held for sale Investments TOTAL ASSETS

2014 2013 Year Ended June 30 $1,378,935$ 501,940 4,929,525 74,714 176,634 97,514 106,744 143,728 199,241 2,149,902 51,180,307 $60,939,184

$716,215$ 568,684 4,320,795 60,616 985 125,833 1,434,502 44,586,428 $51,814,058

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable Scholarships and other payables to Idaho State University Obligations to beneficiaries under split-interest agreements Funds held in custody for others Long-term debt TOTAL LIABILITIES

164,597 376,383 792,775 29,283 5,973,322 7,336,360

35,681 221,782 744,490 53,329 5,800,000 6,855,282

NET ASSETS Unrestricted Temporarily restricted Permanently restricted TOTAL NET ASSETS

(3,081,801) 21,333,988 35,350,637 53,602,824

(4,352,789) 16,712,393 32,599,172 44,958,776

TOTAL LIABILITIES AND NET ASSETS

$60,939,184

$51,814,058

2014 FINANCIAL REPORT

Summary Statement of

Activities Idaho State University Foundation Year Ended June 30, 2014 REVENUES Contributions and gifts Contributed services Interest and dividends Net realized/unrealized gain on investments Fees, charges, and miscellaneous Pharmacy charges Less cost of goods sold Net pharmacy charges

Unrestricted

Temp. Restricted

Perm. Restricted

Total

$1,493,455 $3,382,929 $2,692,384 $7,568,768 722,470 - - 722,470 152,207 349,038 - 501,245 601,474 5,693,227 - 6,294,701 834,409 15,690 - 850,099 371,883 - - 371,883 (278,954) - - (278,954) 92,929 - - 92,929

Net change in value of split-interest agreements and life insurance - 130,264 (42,151) 88,113 Donor designated transfers (147,515) 46,283 101,232 Net assets released from program restrictions 4,995,836 (4,995,836) - TOTAL REVENUES $8,745,265 $4,621,595 $2,751,465 $16,118,325 EXPENSES Program support to Idaho State University Donations/transfers Scholarships Athletic Department support Support services Management and general Fundraising Pharmacy expenses TOTAL EXPENSES CHANGE IN NET ASSETS NET ASSETS, beginning of year NET ASSETS, end of year

1,137,079 - - 1,137,079 1,388,217 - - 1,388,217 1,039,725 - - 1,039,725 1,658,316 - - 1,658,316 426,940 - - 426,940 1,663,687 - - 1,663,687 160,313 - - 160,313 7,474,277 - - 7,474,277 1,270,988

4,621,595

2,751,465

8,644,048

(4,352,789) $(3,081,801)

16,712,393 $21,333,988

32,599,172 $35,350,637

44,958,776 $53,602,824

IDAHO STATE UNIVERSITY

Summary Statement of

Activities Idaho State University Foundation Year Ended June 30,2013 Unrestricted REVENUES Contributions and gifts $1,416,376 Contributed services 747,202 Interest and dividends 286,928 Net realized/unrealized gain on investments 262,905 Fees, charges, and miscellaneous 683,706 Net change in value of split-interest agreements and life insurance - Donor designated transfers - Net assets released from program restrictions 4,577,300 TOTAL REVENUES $7,974,417 EXPENSES Program support to Idaho State University Donations/transfers Scholarships Athletic Department support Support services Management and general Fundraising TOTAL EXPENSES CHANGE IN NET ASSETS NET ASSETS, beginning of year NET ASSETS, end of year

Temp. Restricted

Perm. Restricted

Total

$1,846,446 - 270,648 3,164,453 18,342 (13,661) (37,189) (4,577,300) $671,739

$825,405 - - - - 37,013 37,189 - $899,607

$4,088,227 747,202 557,576 3,427,358 702,048 23,352 $9,545,763

1,752,259 1,037,184 388,971 1,960,396

- - - -

1,752,259 1,037,184 388,971 1,960,396

387,427 1,498,939 7,025,176

- - -

387,427 1,498,939 7,025,176

949,241

671,739

899,607

2,520,587

(5,302,030) $(4,352,789)

16,040,654 $16,712,393

31,699,565 $32,599,172

42,438,189 $44,958,776

2014 FINANCIAL REPORT

Notes to the

Summary Financial Statements USE OF THE SUMMARY FINANCIAL STATEMENTS

The summary financial statements consist of the following three statements: Summary Statement of Net Position, Summary Statement of Revenues, Expenses and Changes in Net Position, and Summary Statement of Cash Flows. The summary financial statements were derived from the University’s audited financial statements for the fiscal years ended June 30, 2014 and 2013. The summary financial statements aggregate certain line items contained within some audited financial classifications to provide a more summarized presentation and do not include various notes required by generally accepted accounting principles. The University’s and its component unit’s financial statements and related notes, which are presented in conformity with generally accepted accounting principles, may be viewed at isu.edu/finserv/account/ ISUSingleAudit2014&SEFA.pdf.

ORGANIZATION

Idaho State University (the University) is part of the public system of higher education in the State of Idaho (the State). The system is considered part of the State of Idaho financial reporting entity. The State Board of Education (SBOE), appointed by the Governor and affirmed by the legislature, directs the system. The University is headquartered in Pocatello, Idaho with satellite campuses in Idaho Falls, Twin Falls, and Meridian, Idaho.

SUMMARY STATEMENT OF NET POSITION

summary accounting policies and practices are described below to enhance the usefulness of the summary financial statements to the reader.

Reflects the financial position of the University at the end of the fiscal year. The difference between assets plus deferred outflows and liabilities plus deferred inflows represent net position. Changes in net position occur over time and are one indicator of the financial condition of the University.

BASIS OF ACCOUNTING

For financial reporting purposes, the University is considered a special-purpose government engaged only in business-type activities. Accordingly, the University’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred.

SUMMARY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Presents the revenues earned and expenses incurred during the year on an accrual basis, categorized as operating and nonoperating.

CASH EQUIVALENTS

The University considers all liquid investments with a remaining maturity of three months or less at the date of acquisition and all nonnegotiable certificates of deposit to be cash equivalents.

SUMMARY STATEMENT OF CASH FLOWS

Provides information about the University’s inflows and outflows of cash for the year. This statement aids in assessing the University’s ability to meet obligations and commitments as they become due, its ability to generate future cash flows, and its needs for external financing.

CASH WITH TREASURER

Amounts that are required to be remitted to the State of Idaho as a result of the student fee collection process and, once remitted, these balances are under the control of the State Treasurer. Interest accruing on the balance is maintained in a separate fund and must be appropriated by the legislature before any expenditure can occur.

SUMMARY OF ACCOUNTING POLICIES AND PRACTICES

The summary of accounting policies and practices were derived from the University’s audited financial statements for the fiscal years ended June 30, 2014 and 2013. Significant

INVESTMENTS

The University accounts for its investment at fair value in accordance with GASB

Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools . Investment Income is recorded on the accrual basis. Changes in unrealized gains and losses on the carrying value of investments are reported as a component of net investment income in the Statement of Revenues, Expenses and Changes in Net Position.

STUDENT LOANS RECEIVABLE

Loans receivable from students bear interest at rates ranging from 3.00% to 7.00% and are generally payable to the University in installments over a 5 to 10 year period, commencing 6 or 9 months after the date of separation from the University.

ACCOUNTS RECEIVABLE

Accounts receivable consist of fees charged to students as well as auxiliary enterprise services provided to students, faculty and staff, the majority of each residing in the State of Idaho. Accounts receivable also include amounts due from the federal government, state and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the University’s grants and contracts. Accounts receivable are recorded net of estimated uncollectible amounts.

INVENTORIES

Inventories, consisting primarily of items held by University Stores, are valued at the lower of first-in, first-out (“FIFO”) cost or market.

IDAHO STATE UNIVERSITY

PROPERTY, PLANT AND EQUIPMENT

COMPENSATED ABSENCES

Capital assets are stated at cost when purchased or constructed, or if acquired by gift, at the estimated fair value at date of the gift. The University’s capitalization policy includes all items with a unit cost of $5,000 or more, and an estimated useful life of greater than one year. Renovations to buildings and land improvements that significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the period in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The University houses collections at the Idaho Museum of Natural History that it does not capitalize. The University charges these collections to operations at the time of purchase, in accordance with generally accepted accounting principles.

DEFERRED OUTFLOWS OF RESOURCES

This represents resources derived from student fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions related to the educational and general operations of the University, and may be used at the discretion of the institution to meet current expenses for any lawful purpose and in accordance with SBOE policy.

Employee vacation pay that is earned but unused is accrued at year-end for financial statement purposes.

NONCURRENT LIABILITIES

Include the principal portions of revenue bonds payable, notes payable with contractual maturities greater than one year, and other postemployment benefits payable.

INCOME AND UNRELATED BUSINESS INCOME TAXES

DEFERRED INFLOWS OF RESOURCES

The University, as a political subdivision of the State of Idaho, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. The University is liable for tax on its unrelated business income. Defined by the Internal Revenue Code, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the performance by the organization of its exempt purpose or function. The University did not incur unrelated business income tax expense in the fiscal years ended June 30, 2014 or 2013.

Deferred inflows of resources are an acquisition of net assets that are applicable to future reporting periods. Similar to liabilities, they have a negative effect on net position.

NET POSITION

The University’s net position is categorized as follows:

Invested in Capital Assets

Deferred outflows of resources are a consumption of net assets by the University that are applicable to future reporting periods. Similar to assets, they have a positive effect on net position.

This represents the University’s total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.

UNEARNED REVENUES

Restricted, Expendable

Include amounts received for tuition and fees and certain auxiliary activities prior to the end of the fiscal year, but related to the subsequent accounting period. Unearned revenues also include amounts received from grant and contract sponsors that have not yet been earned.

Unrestricted

SCHOLARSHIP DISCOUNTS AND ALLOWANCES

Student fee revenues are reported net of scholarship discounts and allowances in the summary statement of revenues, expenses, and changes in net position. Scholarship discounts and allowances are the difference between the stated charge for goods and services provided by the University, and the amount paid by students or other third parties making payments on the students’ behalf.

This includes resources which the University is legally or contractually obligated to use in accordance with restrictions imposed by external third parties.

2014 FINANCIAL REPORT

USE OF ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, and revenues and expenses during the year. Actual results could differ from those estimates.

CONTINGENCIES AND LEGAL MATTERS The University is a defendant in litigation arising from the normal course of operations. Based on present knowledge, the University’s administration believes any ultimate liability in these matters will not materially affect the financial position of the University.

COMPONENT UNIT DISCLOSURE

The Foundation is discretely presented within the financial statements as a component unit. The Foundation has adopted a policy of preparing its financial statements based upon generally accepted accounting principles in accordance with standards issued by the Financial Accounting Standards Board.

Foundation Operations

The Foundation was established in March 1967 to provide support for the private fundraising efforts of the University and to manage privately donated funds. The Foundation is a not-for-profit corporation incorporated in accordance with the laws of the State of Idaho and managed by a volunteer Board of Directors. Under the Idaho State Board of Educationâ&#x20AC;&#x2122;s administrative rules, the Foundation must be independent of, and cannot be controlled by, the University. The Foundation has an affiliation with a corporation called Bengal Pharmacy, LLC (the Pharmacy) that was formed to serve students, staff and faculty being seen by the student health center and residency program, in addition to 340b patients of Health West in Southeast Idaho. During 2014 the Pharmacy established a tele-pharmacy in Arco, Idaho to expand operations to neighboring communities.

Principles of Consolidation

The consolidated financial statements include the accounts of the Foundation and the Pharmacy because the Foundation has both control and economic interest in the Pharmacy. All significant intercompany accounts and transactions have been eliminated in consolidation.

Basis of Accounting

The Foundation financial statements included in this report have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America, whereby revenue is recorded when earned and expenses are recorded when materials or services are received. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions.

Investments

Capitalized Bond Issuance Costs

Investments in equity and debt securities that have readily determinable fair values are recorded at quoted market prices. Investment securities without quoted market prices are valued at estimated fair value using appropriate valuation methods that consider the underlying assets and financial reports.

Capitalized bond issuance costs consist of legal costs, underwriting fees, printing and other costs incurred to obtain, secure and rate the multi-mode variable rate revenue bonds issued for the construction of the L.E. and Thelma Stephens Performing Arts Center on May 30, 2001. The issuance costs for the bonds have an original cost of $570,000 at May 30, 2001, and are amortized over the term of the bonds, using the effective interest rate method. Accumulated amortization of these bond costs at the end of June 30, 2014 and 2013 were $463,256 and $444,167, respectively.

Promises to Give

Unconditional promises to give are recognized as an asset and contribution revenue in the period the promise is received. Promises to give received after one year are discounted at rates commensurate with risks involved. Amortization of the discount is recorded as additional contribution revenue in accordance with donorimposed restrictions, if any.

Endowments

The Foundationâ&#x20AC;&#x2122;s endowment consists of approximately 500 individual funds established for a variety of purposes. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based upon the existence or absence of donorimposed restrictions.

Obligations under Split Interest Agreements

The Foundation administers such life income agreements as charitable remainder trusts where an income beneficiary is the lifetime recipient of income and the Foundation is the remainder beneficiary. Upon receipt of the gift, a liability is established for the estimated net present value of the lifetime recipientâ&#x20AC;&#x2122;s interest using applicable mortality tables and a discount rate commensurate with the risks involved. A contribution is recognized for the estimated remainder interest.

Fair Value of Assets and Liabilities

valuations occurring monthly to every six months, depending upon the investment type. Property held for sale and investments are valued based on property sold that had a similar use, size, and location as the property held by the Foundation. The value of pledges receivable is determined at the present value of expected future cash flows and is fair valued at the time of the gift. In subsequent years, the value is amortized over the life of the pledge.

Multi-Mode Variable Rate Revenue Bonds A Multi-Mode Variable Rate Revenue Bond was issued on May 30, 2001 in the amount of $22,170,000. The Bonds fully mature on May 1, 2021 and are secured by donations, pledges and other funds held under the Bond Indenture. Debt balance at June 30, 2014 and 2013 was $5,700,000 and $5,800,000, respectively. Interest payments are made monthly with a mandatory bond redemption of $100,000 due annually on May 1. Total interest expense and fees during 2014 and 2013 were $88,292 and $106,188, respectively.

The fair value option was chosen to measure pledges and annuities in order to mitigate volatility in reported changes in net assets. The fair value for mutual fund investments is determined based on quoted market prices. For fixed income investments, fair value is determined based on the value of the underlying investments. For co-mingled and pooled marketable investment funds, fair value is obtained by using the net asset value of the underlying investments. At this level, the underlying assets have a direct market reference price that is traceable. For hedge funds, fair value is determined with independent, third party

Fair Value Measurements

The Foundation has determined the fair value of certain assets and liabilities in accordance with the provisions of ASC 820- 10, Fair Value Measurements, which provides a framework for measuring fair value under generally accepted accounting principles.

IDAHO STATE UNIVERSITY

C.L. â&#x20AC;&#x153;Butchâ&#x20AC;? Otter Governor, State of Idaho

Idaho State Board of Education

Idaho State University Administration

Don Soltman President

Dr. Arthur C. Vailas University President

Emma Atchley Vice President

Dr. Laura Woodworth-Ney Provost and Vice President for Academic Affairs

Rod Lewis Secretary

James A. Fletcher Vice President for Finance and Administration

Debbie Critchfield Member

Dr. Howard Grimes Vice President for Research and Economic Development

Dr. Bill Goesling Member

Dr. Patricia Terrell Vice President for Student Affairs

Dr. David Hill Member

Jeff Tingey Director of Athletics

Richard Westerberg Member

Dr. Kent Tingey Vice President for University Advancement

Sherri Ybarra Superintendent of Public Instruction

Finance and Administration Brant Wright University Controller

2014 FINANCIAL REPORT

IDAHO STATE UNIVERSITY

The Idaho State Bengal football team finished with an 8-4 record, its best since 2003. The Bengals led the nation with an average of 348.1 passing yards per game. Coach Mike Kramer was named Big Sky Coach of the Year.

2014 FINANCIAL REPORT

Pocatello | Idaho Falls

Meridian | Twin Falls #IdahoState