Audit 341848

Title: Basis of Presentation Accounting Policies: Included in Form De Minimis Rate Used: N Rate Explanation: The University System has a negotiated approved IDC rate agreement with the the Cognizant Agency Office of Naval Research (ONR) The financial statements include the accounts of all agencies of Oklahoma State University (the “General University”) and the accounts of the Oklahoma State University Innovation Foundation (“OSUIF”), collectively referred to as the “University.” The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes all Federal awards and other Federal assistance of the University, including Federal awards of the General University and OSUIF, for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended and does not present the financial position, changes in net position or cash flows of the University. For purposes of the Schedule, Federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the Federal government, Federal appropriations to land grant universities and all subawards to the University by nonfederal organizations pursuant to Federal grants, contracts, and similar agreements. As described in the Uniform Guidance document, the federal awards have been classified into two categories: Type A programs and Type B programs. Type A programs are defined by Uniform Guidance as Federal programs with Federal awards expended during the audit period exceeding 0.3%of total Federal awards expended or $3,000,000 if total federal awards expended is greater than $100,000,000 but less than or equal to $1 billion. Type B programs are all other Federal programs. For the year ended June 30, 2023, the dollar threshold used to distinguish between Type A Federal programs and Type B Federal programs was $3,000,000. Type A programs include the following: A. Research and Development Includes Federal appropriations to the Agricultural Experiment Station and awards for research and development work under grants and contracts with agencies and divisions of the Federal government. B. Student Financial Assistance Cluster Includes certain awards to provide financial assistance to students, primarily under the Federal Pell Grant, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant programs of the Department of Education. The University receives awards to make loans to eligible students under certain Federal student loan programs, and federally guaranteed loans are issued to students at the University by various financial institutions. These loans are considered student financial aid; however, only expenses related to the administration and collection of these loans are included in Federal award expenditures. C. Other Type A Programs Basis of Presentation – Continued Assistance Listing Number (formerly Catalog of Federal Domestic Assistance): The University has obtained ALN numbers to ensure that all Federal programs have been identified in the Schedule. ALN numbers for applicable programs have been appropriately listed by those programs. Federal Pass-through Funds: The University passes through certain Funds to subgrantee organizations. Expenditures incurred by the subgrantees and reimbursed by the University are included in the Schedule. The University is also the subrecipient of Federal funds that are reported as expenditures and included in the Schedule. The Detailed Schedule of Federal Awards denotes funding sources for pass-through funds. Federal awards other than those indicated as pass-through are denoted as Federal direct funds.

Title: Summary of Significant Accounting Policies Accounting Policies: Included in Form De Minimis Rate Used: N Rate Explanation: The University System has a negotiated approved IDC rate agreement with the the Cognizant Agency Office of Naval Research (ONR) For purposes of the Schedule, expenditures for Federal award programs are recognized on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in either A-21, Cost Principles for Educational Institutions or the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Oklahoma State University has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance. Moreover, expenditures include a portion of costs associated with general University activities, which are allocated to federal awards under negotiated formulas, referred to as Facilities and Administrative Costs (F&A) or Indirect Costs (IDC). The University uses an F&A rate that has been negotiated with the Office of Naval Research (ONR) in accordance with 2 CFR Part 200. Restricted grants and contracts and other agreements are recognized when funds are expended in accordance with grant provisions.

Title: Federal Student Loan Programs Accounting Policies: Included in Form De Minimis Rate Used: N Rate Explanation: The University System has a negotiated approved IDC rate agreement with the the Cognizant Agency Office of Naval Research (ONR) A. Federal Perkins Loan Program and Health Professional Student Loan Program The Federal Perkins Loan Program (“Perkins”) and the Health Professional Student Loan Program (“HPSL”) are administered directly by the University, and balances and transactions relating to these programs are included in the University’s general purpose financial statements. The balances of loans outstanding at June 30, 2024, and funds advanced by the University to eligible students during the year ended June 30, 2025, under Federal student loan programs are summarized as follows: See the Notes to the SEFA for chart/table B. William D. Ford Federal Direct Loan Program Under the William D. Ford Federal Direct Loan (“Direct Loan”) Program, formerly known as the Federal Direct Student Loan Program, the Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly through the University rather than through private lenders. The Stillwater campus began participation in the Direct Loan Program July 1, 1995. As a university qualified to originate loans, the University is responsible for managing the complete loan process, including funds management. The University is not responsible for the collection of these loans.

Title: Student Financial Aid Institutional and Program Eligibility Metrics Accounting Policies: Included in Form De Minimis Rate Used: N Rate Explanation: The University System has a negotiated approved IDC rate agreement with the the Cognizant Agency Office of Naval Research (ONR) The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23: • Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) • Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) Placement rates for short-term programs under 34 CFR 668.8(e)(2)