Montana State University

The university’s net position increased by approximately $51.2 million from fiscal year 2023 to 2024, driven primarily by a $33 million rise in operating revenues, including tuition, fees, and federal grants and contracts. Tuition and fees continue to increase due to enrollment growth. Additionally, a $44.3 million increase in capital assets further strengthened the university’s financial standing. The university has several construction projects in progress, including athletic facilities, academic buildings, the student wellness center, parking improvements, and other capital investments at many of the university’s campuses and agencies. However, operating expenses also grew by approximately $54.6 million during the same period.

Auditor's Opinion: Unmodified

Our audit efforts focused on the university’s tuition and fees, federal grant and contract revenues, scholarships and fellowships, operating expenses, capital assets, and bonds payable. We reviewed MSU’s implementation of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. We also performed audit procedures for the presentation and disclosure of financial statements and note disclosures. We performed work necessary under the audit standards to rely on the audits completed by other organizations over the component units.

The university’s research expenditures have increased over the last five years. This growth is related to various factors, including the use of partnerships to engage in a higher volume of large contracts with national security agencies. MSU’s Research Development Office opened in fiscal year 2022. The office assists faculty with achieving success on their proposals, submitting proposals more frequently, and focusing on proposals with larger award amounts. The university also has an Office of Sponsored Programs, which ensures compliance with grant requirements. The following graph illustrates the growth in research expenditures and revenues over the last five years.

For information on the growth trend in enrollment between 2022 and 2024, refer to the Annual Full Time Equivalent Students table.