Final - HECC Statement of Work and GBTs - 3 - 4 - 26 - BC

Sep 13, 2026

Uploaded by Aditya

A cover letter and corresponding Statement of Work define Deloitte Consulting LLP’s role in supporting Southern Oregon University and the Higher Education Coordinating Commission amid projected negative cash balance and immediate spending restrictions. The engagement targets a fact-based, decision-ready path to financial sustainability through Phase 1 efforts, including a strategic and financial assessment, development of long-term structural financial models, scenario testing, and program sustainability reviews to inform preserve, consolidate, restructure, or discontinue decisions.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages16

Reading Time6 min

AccessFree to download

Engagement Letter and Cover Letter

Project information and contract terms

Services scope: approach, scope, and responsibilities

Project timeline and deliverables

Deloitte Consulting LLP 1125 NW Couch St. Suite 600 Portland, OR 97209 March 4, 2026 Cover Letter Ben Cannon Executive Director Higher Education Coordinating Commission 3225 25th Street SE Salem, OR 97302 Re: Engagement Letter for Financial and Strategic Assessment at Southern Oregon University Dear Mr. Cannon, Deloitte understands that on February 3, 2026, Southern Oregon University (“SOU”) enacted immediate spending restrictions following a board meeting during which trustees discussed a forecasted negative cash balance by spring 2027 . Left unaddressed, cash insolvency means that SOU would be unable to meet its Tinancial obligations, including to employees, lenders, and vendors. The 2026 Legislature is expected to adopt a Special Purpose Appropriation that provides for the possibility of emergency Tiscal support to SOU. But before receiving this funding, SOU will be required to issue a report, by April 30, 2026, that describes how it will remain cash solvent for the remainder of the 2025-27 biennium and will achieve ongoing structural Tiscal stability through at least 2027-29. Failing to address SOU’s projected cash insolvency would result in a multi-million-dollar default on obligations to employees and others. This would have an enormous economic and educational impact on southern Oregon and the State of Oregon. Moreover, failing to quickly develop a turnaround plan is likely to trigger a sharp decline in public and student conTidence in the university, further destabilizing the university’s Tinances through enrollment loss for 2026-27. To support SOU and HECC, we have provided the following Statement of Work (“SOW”), representing Phase 1 of a potential two-phase process to assist SOU and HECC in its development and implementation of a transition plan for SOU. Deloitte looks forward to supporting this work for SOU. If you have any questions or would like to discuss this SOW further, please contact me at (802)-281-2979 or [mcluver@deloitte.com](mcluver@deloitte.com). Sincerely, Megan E. Cluver, Principal Deloitte Consulting LLP Informational Cover Page-Contract THIS PAGE IS NOT PART OF THE CONTRACT Agreement No. 25-178 | AGREEMENT INFORMATION | | | --- | --- | | Project Title: | Emergency Financial Consultant for SOU | | Effective Date: | Upon Execution | | Expiration Date: | May 31, 2026 | | Contract Amount: | Not to Exceed $500,000 | | Funding Source: | State Funds – PCA: / DCR: | | VENDOR INFORMATION | | | Vendor: | Deloitte Consulting LLP | | Address: | 1125 NW Couch St. Suite 600
Portland, OR 97209 | | Project Contact: | Megan Cluver | | Phone: | 802-281-2979 | | Email: | [mcluver@deloitte.com](mcluver@deloitte.com) | | Fiscal Contact: | Megan Cluver | | Phone: | 802-281-2979 | | Email: | [mcluver@deloitte.com](mcluver@deloitte.com) | | HECC INFORMATION | | | Contract Administrator: | Ben Cannon | | Phone: | 503-689-6548 | | Email: | [Ben.Cannon@hecc.oregon.gov](Ben.Cannon@hecc.oregon.gov) | | Procurement Contact: | Derek Dizney | | Phone: | 503-979-5912 | | Email: | [Derek.Dizney@hecc.oregon.gov](Derek.Dizney@hecc.oregon.gov) | March 4, 2026 Statement of Work Ben Cannon Executive Director Higher Education Coordinating Commission 3225 25th Street SE Salem, OR 97302 Re: Engagement Letter for Financial and Strategic Assessment at Southern Oregon University Mr. Cannon: I am pleased to conTirm that Deloitte Consulting LLP (“Deloitte1”,“us,” or “we”) will perform the consulting services set forth in this Engagement Letter (the “Services”) to assist Southern Oregon University (“SOU”,“University”, or “Client”) in connection with a suite of strategic services aimed at providing a pathway to Tinancial sustainability, if such a pathway exists. 1. Description of Approach, Scope, and Responsibilities A. Overview Deloitte will conduct a strategic and Tinancial assessment to help the Higher Education Coordinating Commission (“HECC”) and Southern Oregon Univ

FAQs

What situation and timeline trigger the engagement for Southern Oregon University?

Southern Oregon University faces immediate spending restrictions and a projected negative cash balance by spring 2027. A report is required by April 30, 2026 to maintain cash solvency through the 2025-27 biennium and achieve structural financial stability through at least 2027-29.

What is the purpose of the Statement of Work?

The Statement of Work provides Phase 1 support toward developing and implementing a transition plan for Southern Oregon University and HECC. It focuses on a strategic and financial assessment to establish a practical path to a balanced budget consistent with legislative direction.

What activities does Deloitte perform under the engagement?

Deloitte develops a long-term structural financial model with scenarios, key assumptions, and sensitivity analyses, and assesses SOU programs and functions for sustainability and mission alignment. The work supports identifying activities that may be preserved, consolidated, restructured, or discontinued, and compares operational models and feasibility.

Sep 13, 2026

Uploaded by Aditya