mayo a-133 facr rpts/2014...mayo clinic consolidated statements of cash flows years ended december...

Mayo Clinic Financial and Compliance Report December 31, 2014

Contents Independent Auditor’s Report on the Financial Statements 1-2 Financial Statements

Consolidated statements of financial position 3

Consolidated statements of activities 4

Consolidated statements of cash flows 5

Notes to consolidated financial statements 6-41 Supplemental Information

Mayo Clinic Florida:

Statements of financial position 42

Statements of activities 43

Schedule of expenditures of federal awards 44-71

Schedule of expenditures of Florida state financial assistance 72

Notes to schedules of expenditures of federal awards and Florida state financial assistance 73 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 74-75

Independent Auditor’s Report on Compliance for Each Major Federal Program and State

Project and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and Chapter 10.650, Rules of the Auditor General of the State of Florida 76-77

Schedule of Findings and Questioned Costs 78-80 Summary Schedule of Prior Audit Findings 81

1

Independent Auditor’s Report on the Financial Statements Board of Trustees Mayo Clinic Rochester, Minnesota Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Mayo Clinic and its subsidiaries (the Clinic), which comprise the consolidated statements of financial position as of December 31,2014 and 2013; the related consolidated statements of activities and cash flows for the years then ended; and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Mayo Clinic and its subsidiaries as of December 31, 2014 and 2013, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

2

Other Matters Supplemental Information Our audits were conducted for the purpose of forming an opinion on the 2014 and 2013 consolidated financial statements as a whole. The accompanying supplemental statements of financial position and activities for Mayo Clinic Florida are presented for purposes of additional analysis and are not a required part of the 2014 and 2013 consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements, or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole. The accompanying supplemental cash basis schedules of expenditures of federal awards and Florida state financial assistance and notes to the schedules of expenditures of federal awards and Florida state financial assistance, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.650, Rules of the Auditor General of the State of Florida, are presented for the purposes of additional analysis and are not a required part of the 2014 consolidated financial statements. The schedules provide relevant information that is not provided by the consolidated financial statements and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America or a complete presentation in accordance with the cash basis of accounting. Under the cash basis, expenditures are recognized when paid rather than when the obligation is incurred. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements, or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the cash basis schedules referred to above are fairly stated in relation to the consolidated financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our reports dated March 2, 2015, and February 26, 2014, on our consideration of the Clinic’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clinic’s internal control over financial reporting and compliance.

Minneapolis, Minnesota March 2, 2015

3

Mayo Clinic

Consolidated Statements of Financial PositionDecember 31, 2014 and 2013 (In Millions)

Assets 2014 2013Current Assets

Cash and cash equivalents 54.5$ 47.2$ Accounts receivable for medical services, less allowances for

uncollectible accounts of $514.1 in 2014 and $441.9 in 2013 (Note 2) 1,495.2 1,414.4Securities lending collateral (Note 5) 85.2 78.7Other receivables (Notes 10 and 15) 242.3 252.4Other current assets (Note 15) 160.7 146.3

Total current assets 2,037.9 1,939.0

Investments (Note 4) 7,178.7 6,304.1

Investments Under Securities Lending Agreement (Note 5) 90.8 78.9

Other Long-Term Assets (Notes 10, 13 and 15) 649.1 907.7

Property, Plant and Equipment, net (Note 6) 4,056.8 3,978.2 Total assets 14,013.3$ 13,207.9$

Liabilities and Net Assets

Current LiabilitiesAccounts payable 411.2$ 400.4$ Accrued payroll 555.2 511.9 Accrued employee benefits 127.6 128.7 Deferred revenue 42.8 44.1 Long-term variable-rate debt (Note 8) 360.0 240.0 Securities lending payable (Note 5) 85.2 78.7 Other current liabilities (Notes 13, 14 and 15) 321.3 284.0

Total current liabilities 1,903.3 1,687.8

Long-Term Debt (Note 8) 2,450.3 2,321.2

Accrued Pension and Postretirement Benefits, net of current (Note 13) 1,611.1 739.9

Other Long-Term Liabilities (Notes 9, 14 and 15) 857.1 805.5 Total liabilities 6,821.8 5,554.4

Net Assets (Notes 10 and 11)Unrestricted 4,761.4 5,414.6 Temporarily restricted 1,322.6 1,250.0 Permanently restricted 1,107.5 988.9

Total net assets 7,191.5 7,653.5 Total liabilities and net assets 14,013.3$ 13,207.9$

See Notes to Consolidated Financial Statements.

4

Mayo Clinic

Consolidated Statements of ActivitiesYears Ended December 31, 2014 and 2013 (In Millions)

Temporarily Permanently Temporarily Permanently

Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Total

Revenue, gains and other support:Net medical service revenue (Note 2) 8,165.0$ -$ -$ 8,165.0$ 7,902.1$ -$ -$ 7,902.1$ Grants and contracts 375.2 - - 375.2 371.5 - - 371.5 Investment return allocated to current activities (Note 4) 156.3 16.6 - 172.9 149.2 20.7 - 169.9 Contributions available for current activities 36.4 142.7 - 179.1 49.2 182.3 - 231.5 Premium revenue 131.7 - - 131.7 115.3 - - 115.3 Other (Notes 3 and 16) 736.7 - - 736.7 630.5 - - 630.5 Net assets released from restrictions (Note 10) 179.8 (179.8) - - 166.1 (166.1) - -

Total revenue, gains and other support 9,781.1 (20.5) - 9,760.6 9,383.9 36.9 - 9,420.8

Expenses (Note 12):Salaries and benefits 5,871.5 - - 5,871.5 5,930.2 - - 5,930.2 Supplies and services 2,289.4 - - 2,289.4 2,138.8 - - 2,138.8 Facilities 669.1 - - 669.1 649.6 - - 649.6 Finance and investment 96.3 - - 96.3 90.1 - - 90.1

Total expenses 8,926.3 - - 8,926.3 8,808.7 - - 8,808.7

Income (loss) from current activities 854.8 (20.5) - 834.3 575.2 36.9 - 612.1

Noncurrent and other items:Contributions not available for current activities, net (11.2) 4.8 103.9 97.5 (15.4) 25.6 142.4 152.6 Unallocated investment return, net (Note 4) 133.8 95.9 - 229.7 258.9 174.2 - 433.1 Income tax expense (Note 7) (32.2) - - (32.2) (22.1) - - (22.1) Reclassifications and other (8.5) (7.6) 14.7 (1.4) 9.2 - - 9.2

Total noncurrent and other items 81.9 93.1 118.6 293.6 230.6 199.8 142.4 572.8

Increase in net assets before otherchanges in net assets 936.7 72.6 118.6 1,127.9 805.8 236.7 142.4 1,184.9

Pension and other postretirement benefit adjustments (Note 13) (1,589.9) - - (1,589.9) 1,782.3 - - 1,782.3

Increase (decrease) in net assets (653.2) 72.6 118.6 (462.0) 2,588.1 236.7 142.4 2,967.2

Net assets at beginning of year 5,414.6 1,250.0 988.9 7,653.5 2,826.5 1,013.3 846.5 4,686.3 Net assets at end of year 4,761.4$ 1,322.6$ 1,107.5$ 7,191.5$ 5,414.6$ 1,250.0$ 988.9$ 7,653.5$


2014 2013

5

Mayo Clinic

Consolidated Statements of Cash FlowsYears Ended December 31, 2014 and 2013 (In Millions)

2014 2013Cash Flows From Current Activities

Increase (decrease) in net assets (462.0)$ 2,967.2$ Adjustments to reconcile changes in net assets to net cash provided

by current activities:Depreciation and amortization 437.2 423.2 Provision for uncollectible accounts 207.6 195.1 Net realized and unrealized gain on investments (285.7) (508.2) Restricted gifts, bequests and other (103.9) (142.4) Net change in accounts receivable and other current assets

and liabilities (203.5) (158.3) Pension and other postretirement benefits adjustments 1,215.5 (1,822.8) Net change in other long-term assets and liabilities (7.7) (21.5)

Net cash provided by current activities 797.5 932.3

Cash Flows From Investing ActivitiesPurchase of property, plant and equipment (515.8) (627.8) Purchases of investments (901.5) (1,270.3) Sales and maturities of investments 300.7 656.2

Net cash used in investing activities (1,116.6) (1,241.9)

Cash Flows From Financing ActivitiesRestricted gifts, bequests and other 77.3 80.2 Borrowings on long-term debt 300.0 300.0 Payment of long-term debt (50.9) (83.0)

Net cash provided by financing activities 326.4 297.2

Net increase (decrease) in cash and cash equivalents 7.3 (12.4)

Cash and Cash Equivalents at Beginning of Year 47.2 59.6 Cash and Cash Equivalents at End of Year 54.5$ 47.2$


Mayo Clinic Notes to Consolidated Financial Statements (In Millions)

6

Note 1. Organization and Summary of Significant Accounting Policies

Organization: Mayo Clinic (Clinic) and its Arizona, Florida, Georgia, Iowa, Minnesota and Wisconsin affiliates provide comprehensive medical care and education in clinical medicine and medical sciences and conduct extensive programs in medical research. The Clinic and its affiliates also provide hospital and outpatient services, and at each major location, the clinical practice is closely integrated with advanced education and research programs. The Clinic and most of its subsidiaries have been determined to qualify as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (Code) and as a public charity under Section 509(a)(2) of the Code. Basis of presentation: Included in the Clinic’s consolidated financial statements are all of its wholly owned or wholly controlled subsidiaries. All significant intercompany transactions have been eliminated in consolidation. In addition, these statements follow generally accepted accounting principles applicable to the not-for-profit industry as described in the Financial Accounting Standards Board’s FASB Accounting Standards Codification (ASC) Topic 958. New accounting pronouncement: In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which converged and replaced existing revenue recognition guidance, including industry-specific guidance. This ASU requires revenue to be recognized in an amount that reflects the consideration the entity expects to be entitled in an exchange of goods or services. The update is effective during interim and annual periods beginning on or after January 1, 2017, for the Clinic. Early application is not permitted. The ASU allows for full or modified retrospective adoption. Under the full retrospective application, an entity will apply the standard to each prior reporting period presented. Under the modified retrospective application, an entity recognizes the cumulative effect of initially applying the new standard as an adjustment to the opening balance of net assets at the date of initial application. Revenue in periods presented before that date will continue to be reported under guidance in effect before the change. The Clinic is evaluating this new guidance and has not yet determined which approach it will adopt to apply the amendments or the impact that the adoption of this update will have on its consolidated financial statements. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents: Cash and cash equivalents include currency on hand, demand deposits with banks or other financial institutions, and short-term investments with maturities of three months or less from the date of purchase, which are not managed by the Clinic’s investment managers. Accounts receivable for medical services: Accounts receivable for medical services are stated at estimated net realizable value. The Clinic estimates the allowances for uncollectible accounts based on historic write-offs and the aging of the accounts. Accounts are written off when collection efforts have been exhausted. Inventories: Inventories, consisting primarily of medical supplies and pharmaceuticals, are stated at the lower of cost or market, determined using the first-in, first-out method.


7

Note 1. Organization and Summary of Significant Accounting Policies (Continued)

Investments: Investments in equity and debt securities, including alternative investments, are recorded at fair value (Note 4). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Realized gains and losses are calculated based on the average cost method. Investment income or loss (including realized and unrealized gains and losses on investments, interest and dividends) are included in the consolidated statements of activities. The investments in alternative investments may individually expose the Clinic to securities lending, short sales, and trading in futures and forward contract options and other derivative products. The Clinic’s risk is generally limited to the investment’s carrying value. It is the Clinic’s intent to maintain a long-term investment portfolio to support research, education and other activities. Accordingly, the total investment return is reported in the consolidated statements of activities in two categories. The investment return allocated to current activities is determined by a formula, which involves allocating five percent of a three-year moving average of investments related to endowments and additionally entails the matching of financing costs for the assets required for operations. Management believes this return is approximately equal to the real return that the Clinic expects to earn on its investments over the long term. The unallocated investment return, included in noncurrent and other items in the consolidated statements of activities, represents the difference between the total investment return and the amount allocated to current activities. Property, plant and equipment: Property, plant and equipment are carried at cost if purchased or at fair value on the date received through affiliation or donation, less accumulated depreciation. Plant and equipment are depreciated over estimated useful lives ranging from three to fifty years using the straight-line method. Depreciation expense is reflected in facilities expense and was $437.2 and $423.2 in 2014 and 2013, respectively, and includes amortization of assets recorded under capital leases. Costs associated with the development and installation of internal-use software are accounted for in accordance with the Intangibles—Goodwill and Other, Internal Use Software subtopic of the FASB ASC. Accordingly, internal-use software costs are expensed or capitalized according to the provisions of the accounting standard. Deferred compensation: The Clinic offers eligible employees a nonqualified, tax-deferred compensation retirement plan. Employees defer compensation into the plan on a pretax basis. For the most part, the plan operates similar to a defined contribution plan. Asset retirement obligations: The Clinic accounts for the estimated cost of legal obligations associated with long-lived asset retirements in accordance with the Asset Retirement and Environmental Obligations topic of the FASB ASC. The asset retirement liability, recorded in other long-term liabilities, is accreted to the present value of the estimated future costs of these obligations at the end of each period. Net assets: Resources are classified for reporting purposes into three net asset categories (unrestricted, temporarily restricted and permanently restricted) according to the absence or existence of donor-imposed restrictions. Temporarily restricted net assets are those assets, including contributions and accumulated investment returns, whose use has been limited by donors to specific purposes or time periods. Permanently restricted net assets are those for which donors require the principal of the gifts to be maintained in perpetuity and provide a permanent source of income. Reclassifications of net assets are primarily the result of donor redesignations.


8


Net medical service revenue: Net medical service revenue is recognized when services are provided. The Clinic has agreements with third-party payors that provide for payments to the Clinic at amounts different from its established rates. Payment arrangements include prospectively determined rates per discharge, reimbursed costs, discounted charges, and per diem rates. Net medical service revenue is reported at the estimated net amounts due from patients and third-party payors for services rendered. For patients that do not qualify for charity care, the Clinic recognizes revenue on the basis of its standard rates for services provided less an allowance for uncollectible accounts (or on the basis of discounted rates, if negotiated or provided by policy). Based on historical experience, a portion of the Clinic’s patients will be unable or unwilling to pay for the services provided. Thus, the Clinic records a provision for uncollectible accounts related to patients in the period the services are provided. Grants and contracts: Reciprocal grants and contracts revenue is recognized when the expenses have been incurred for the purpose specified by the grantor or in accordance with the terms of the agreement. Payments received in advance are reported as deferred revenue. Grant and contract amounts due to the Clinic are included in other receivables. Premium revenue: Premium revenue represents capitated health premiums received by a managed care subsidiary from third parties and is recognized as revenue in the period in which enrollees are entitled to health care services. Charity and uncompensated care: The Clinic provides health care services to patients who meet certain criteria under its Charity Care Policy without charge or at amounts less than established rates. Since the Clinic does not pursue collection of these amounts, they are not reported as revenue. The estimated cost of providing these services was $75.9 and $84.4 in 2014 and 2013, respectively, calculated by multiplying the ratio of cost to gross charges for the Clinic by the gross uncompensated charges associated with providing care to charity patients. In addition to the charges related to the direct patient care provided under the Clinic’s Charity Care Policy, the Clinic has programs offered to benefit the broader community and other governmental reimbursement programs. The Clinic also participates in various state Medicaid programs for indigent patients. The estimated unreimbursable cost of providing services related to Medicaid programs totaled $385.4 and $353.2 in 2014 and 2013, respectively. Contributions: The Clinic classifies unrestricted contributions and temporarily restricted contributions that are available for current activities as revenue, based on the lack of specific donor restriction or the presence of donor restrictions and the ability of the Clinic to meet those restrictions within the fiscal year. Permanently restricted contributions and temporarily restricted contributions that are not available for current activities are classified in noncurrent and other items in the consolidated statements of activities. Development expenses of $37.1 and $36.8 are allocated between current ($25.2 and $21.4) and noncurrent ($11.9 and $15.4) activities in 2014 and 2013, respectively. The current portion is recorded in expenses, and the noncurrent portion is netted against unrestricted contributions not available for current activities in the consolidated statements of activities. Unconditional promises to give and contributions are reported at fair value at the time of the gift. An allowance for uncollectible pledges receivable is estimated based on a combination of historical experience and specific identification. Conditional promises to give are recognized at fair value when the conditions on which they depend are substantially met or the probability that the condition will not be met is remote. The Clinic does not imply a time restriction that expires over the useful life for gifts of long-lived assets. The Clinic periodically receives works of art from various benefactors. These items are unique in nature and are held on display for the benefit and enjoyment of the Clinic’s patients. It is the Clinic’s policy to neither capitalize contributed works of art nor record the related contribution revenue.


9


Income from current activities: The Clinic’s policy is to include in income from current activities all net medical service and other revenue, grants and contracts, investment return allocated to current activities, contributions available for current activities, premium revenue, net assets released from restrictions, and substantially all expenses. Contributions not available for current activities, unallocated investment return, and those items not expected to recur on a regular basis are included in noncurrent and other items in the consolidated statements of activities. Subsequent events: The Clinic evaluated events and transactions occurring subsequent to December 31, 2014, through March 2, 2015, the date of issuance of the consolidated financial statements. During this period, there were no subsequent events requiring recognition in the consolidated financial statements. Additionally, there were no unrecognized events requiring disclosure, except the Clinic has an initiative with a major health care software company to consolidate onto a single, integrated, patient-centered electronic medical record and revenue cycle management platform. The project is highly complex and integral to operations. Operating and capital expenditures are estimated to exceed $1 billion with a project timeline of approximately five years for implementation at all Clinic locations. Successful installation will enhance the Clinic’s ability to further standardize patient care and administrative activities that will improve outcomes and experiences for all patients.

Note 2. Net Medical Service Revenue, Contractual Arrangements With Third-Party Payors, and Allowance for Doubtful Accounts

The Clinic provides care to patients under the Medicare program and contractual arrangements with other third-party payors. The Medicare program pays for inpatient and most outpatient services at predetermined rates. Certain hospital services are reimbursed based on allowable costs as reported in cost reports, which are subject to retroactive audit and adjustment. Adjustments arising from reimbursement arrangements with third-party payors are accrued on an estimated basis in the period in which the services are rendered. Estimates for recognized cost report settlements can differ from actual reimbursement based on the results of subsequent reviews and cost report audits. The impact to net medical service revenue of such items was not significant in 2014 and 2013. Future changes in the Medicare program and reduction of funding levels could have an adverse effect on the Clinic. Net medical service revenue under the Medicare program represented approximately 25 percent of total net medical service revenue for 2014 and 2013. At December 31, 2014 and 2013, approximately 16 percent and 17 percent, respectively, of accounts receivable for medical services was due from the Medicare program.


10

Note 2. Net Medical Service Revenue, Contractual Arrangements With Third-Party Payors, and Allowance for Doubtful Accounts (Continued)

As a service to the patient, the Clinic bills third-party payors directly and bills the patient when the patient’s liability is determined. Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the collectibility of accounts receivable, the Clinic analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts. For receivables associated with services provided to patients who have third-party coverage, the Clinic analyzes contractually due amounts and provides contractual allowances based on these amounts. Additionally, an allowance for doubtful accounts and a provision for uncollectible accounts is provided for expected uncollectible deductibles and copayments on accounts for which the patient is responsible. For receivables associated with self-pay patients, the Clinic records a significant provision for uncollectible accounts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates (or the discounted rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. The Clinic’s allowance for doubtful accounts was 25.6 percent and 23.8 percent of accounts receivable at December 31, 2014 and 2013, respectively. In addition, the Clinic’s write-offs were $132.6 and $139.9 for the years ended December 31, 2014 and 2013, respectively. The Clinic has not significantly changed its charity care policies in 2014. Net medical service revenue for the years ended December 31 consisted of the following:

2014 2013Medical service revenue (net of contractual allowances and

discounts) 8,369.8$ 8,094.2$ Provision for uncollectible accounts (204.8) (192.1) Net medical service revenue 8,165.0$ 7,902.1$ The Clinic recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered. Medical service revenue, net of contractual allowances and discounts (but before the provision for uncollectible accounts), recognized in the years ended December 31 from these major payor sources, is as follows:

2014 2013

Third-party payors 7,968.7$ 7,676.1$ Self-pay 401.1 418.1 Total all payors 8,369.8$ 8,094.2$


11

Note 3. Incentive Revenue

The Health Information Technology for Economic and Clinic Health (HITECH) portion of the American Recovery and Reinvestment Act of 2009 included $27.0 billion in incentives through Medicare and Medicaid reimbursement systems to foster electronic health record (EHR) adoption. In order to be eligible for EHR incentive funding, eligible hospitals and professionals must use a certified EHR, report quality measures, and achieve “meaningful use,” as defined by HITECH. The Clinic is entitled to receive Medicare and Medicaid incentive payments for the adoption of certified EHR technology for its eligible hospitals and employed physicians, as the Clinic believes it has satisfied the statutory and regulatory requirements. The Clinic applies the gain contingency model for recognizing incentive revenue. As a result, incentives earned totaled $36.4 and $54.7 for the years ended December 31, 2014 and 2013, respectively, and are included in other revenue. Income from incentive payments is subject to retrospective adjustments as the incentive payments are calculated using Medicare cost report data that is subject to audit. Additionally, the Clinic’s compliance with the meaningful use criteria is subject to audit by the federal government.

Note 4. Fair Value Measurements, Investments and Other Financial Instruments

The Clinic holds certain financial instruments that are required to be measured at fair value on a recurring basis. The valuation techniques used to measure fair value under the Fair Value Measurements and Disclosures topic of the FASB ASC are based upon observable and unobservable inputs. The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or

liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active

markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the same term of the financial instrument.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value

measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Clinic’s policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers in 2014 or 2013.


12

Note 4. Fair Value Measurements, Investments and Other Financial Instruments (Continued)

The following tables present the financial instruments carried at fair value as of December 31, 2014 and 2013, by caption on the consolidated statements of financial position categorized by the valuation hierarchy defined above:

TotalLevel 1 Level 2 Level 3 Fair Value

Assets:Securities lending collateral 85.2$ -$ -$ 85.2$

Investments: Cash equivalents 1,145.0 - - 1,145.0 Fixed-income securities:

U.S. government - 108.6 - 108.6 U.S. government agencies - 225.2 - 225.2 U.S. corporate - 319.0 20.3 339.3 Foreign - 89.9 - 89.9

Common and preferred stocks: U.S. 410.7 - - 410.7 Foreign 390.8 - - 390.8

Funds: Fixed-income 348.8 - - 348.8 Equities 398.1 110.9 - 509.0

Alternative investments: Absolute return and hedge funds - - 2,239.5 2,239.5 Private equity, real estate and natural

resources funds - - 1,458.2 1,458.2 Other investments 4.5 - - 4.5

Less securities under lending agreement (90.8) - - (90.8) Total investments 2,607.1 853.6 3,718.0 7,178.7

Investments under securities lendingagreement 90.8 - - 90.8

Other long-term assets:Trust receivables 94.8 34.6 55.5 184.9 Technology-based ventures - - 29.8 29.8

Total other long-term assets 94.8 34.6 85.3 214.7 Total assets at fair value 2,877.9$ 888.2$ 3,803.3$ 7,569.4$

Liabilities:Securities lending payable 85.2$ -$ -$ 85.2$

Total liabilities at fair value 85.2$ -$ -$ 85.2$

December 31, 2014


13


TotalLevel 1 Level 2 Level 3 Fair Value

Assets:Securities lending collateral 78.7$ -$ -$ 78.7$

Investments: Cash equivalents 1,012.8 - - 1,012.8 Fixed-income securities:

U.S. government - 73.7 - 73.7 U.S. government agencies - 358.0 - 358.0 U.S. corporate - 139.2 26.6 165.8 Foreign - 69.6 - 69.6

Common and preferred stocks: U.S. 381.6 - - 381.6 Foreign 294.5 - - 294.5

Funds: Fixed-income 335.4 - - 335.4 Equities 406.2 116.0 - 522.2

Alternative investments: Absolute return and hedge funds - - 2,043.9 2,043.9 Private equity, real estate and natural

resources funds - - 1,125.0 1,125.0 Other investments 0.5 - - 0.5

Less securities under lending agreement (78.9) - - (78.9) Total investments 2,352.1 756.5 3,195.5 6,304.1

Investments under securities lendingagreement 78.9 - - 78.9

Other long-term assets:Trust receivables 93.4 32.9 53.9 180.2 Technology-based ventures - - 19.6 19.6

Total other long-term assets 93.4 32.9 73.5 199.8 Total assets at fair value 2,603.1$ 789.4$ 3,269.0$ 6,661.5$

Liabilities:Securities lending payable 78.7$ -$ -$ 78.7$

Total liabilities at fair value 78.7$ -$ -$ 78.7$

December 31, 2013


14


Following is a description of the Clinic’s valuation methodologies for assets and liabilities measured at fair value. Fair value for Level 1 is based upon quoted market prices. Fair value for Level 2 is based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Inputs are obtained from various sources, including market participants, dealers and brokers. Level 3, which primarily consists of alternative investments (principally limited partnership interests in absolute return, hedge, private equity, real estate and natural resources funds), represents the Clinic’s ownership interest in the net asset value (NAV) of the respective partnership obtained from fund manager statements and historical audited financial statements. Investments held by the partnerships consist of marketable securities as well as securities that do not have readily determinable fair values. The fair values of the securities held by partnerships that do not have readily determinable fair values are determined by the general partner and are based on historical cost, appraisals, or other estimates that require varying degrees of judgment. If no public market exists for the investment securities, the fair value is determined by the general partner, taking into consideration, among other things, the cost of the securities, prices of recent significant placements of securities of the same issuer, and subsequent developments concerning the companies to which the securities relate. Alternative investments are redeemable with the investee fund at NAV under the original terms of the subscription agreement. Due to the nature of these investments, changes in market conditions and the overall economic environment may significantly impact the NAV of the funds and, therefore, the value of the Clinic’s interest. It is therefore reasonably possible that, if the Clinic were to sell all or a portion of its alternative investments, the transaction value could be significantly different than the fair value reported as of December 31. The trusts receivable are recorded at fair value based on the underlying value of the assets in the trust or discounted cash flow of the expected payment streams. The trusts reported as Level 3 are primarily perpetual trusts managed by third parties invested in stocks, mutual funds and fixed-income securities that are traded in active markets with observable inputs, which would result in Level 1 and 2 hierarchal reporting. However, since the Clinic will never receive the trust assets, these perpetual trusts are reported as Level 3. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Clinic believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.


15


The following tables are a rollforward of the consolidated statement of financial position amounts for financial instruments classified by the Clinic within Level 3 of the valuation hierarchy defined above:

Absolute Private Return Equity

Investments Investments Other Total

Fair value December 31, 2012 1,577.0 $ 986.1 $ 81.1 $ 2,644.2 $ Realized gain (loss) (438.1) 53.5 (20.6) (405.2) Unrealized gain 777.4 33.2 4.3 814.9 Purchases 352.1 256.4 35.3 643.8 Issuances and settlements (224.5) (204.2) - (428.7) Fair value December 31, 2013 2,043.9 1,125.0 100.1 3,269.0 Realized gain 20.3 63.0 2.1 85.4 Unrealized gain 100.0 95.0 10.3 205.3 Purchases 126.7 394.4 8.0 529.1 Issuances and settlements (51.4) (219.2) (14.9) (285.5) Fair value December 31, 2014 2,239.5 $ 1,458.2 $ 105.6 $ 3,803.3 $ The following information pertains to those alternative investments recorded at net asset value in accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC. At December 31, 2014, alternative investments recorded at NAV consisted of the following:

Redemption RedemptionFair Unfunded Frequency (If Notice

Value Commitment Currently Eligible) Period

Absolute return/hedge funds (a) 2,239.5$ -$ Monthly to annually 30–90 daysPrivate partnerships (b) 1,458.2 913.1

3,697.7$ 913.1$ At December 31, 2013, alternative investments recorded at NAV consisted of the following:




3,168.9$ 819.0$


16


(a) This category includes investments in absolute return/hedge funds, which are actively managed commingled investment vehicles that derive the majority of their returns from factors other than the directional flow of the markets in which they invest. Representative strategies include high-yield credit, distressed debt, merger arbitrage, relative value, and long-short equity strategies. The fair values of the investments in this category have been estimated using the net asset value per share of the investments. Investments in this category generally carry “lockup” restrictions that do not allow investors to seek redemption in the first year after acquisition. Following the initial lockup period, liquidity is generally available monthly, quarterly or annually following a redemption request. Over 90 percent of the investments in this category have at least annual liquidity.

(b) This category includes limited partnership interests in closed-end funds that focus on venture capital,

private equity, real estate and resource-related strategies. The fair values of the investments in this category have been estimated using the net asset value of the Clinic’s ownership interest in partners’ capital. Distributions from each fund will be received as the underlying investments of the funds are liquidated. It is estimated that the underlying assets of most funds will generally be liquidated over a seven- to 10-year period.

From time to time, the Clinic invests directly in certain derivative contracts that do not qualify for hedge accounting and are recorded at fair value in investments. Changes in fair value are reported as a component of net unrealized gains in the investment returns. These contracts are used in the Clinic’s investment management program to minimize certain investment risks. At December 31, 2014 and 2013, the Clinic did not hold any significant derivative contracts. The carrying values of cash, cash equivalents, short-term investments, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair values due to the short-term nature of these financial instruments. The estimated fair value of long-term debt (Note 8), based on quoted market prices for the same or similar issues (Level 2), was approximately $126.7 more than its carrying value at December 31, 2014, and $86.4 less than its carrying value at December 31, 2013. The Clinic uses various external investment managers to diversify the investments in alternative assets. The largest allocation to any alternative investment strategy manager as of December 31, 2014 and 2013, is $275.8 (7.3 percent) and $278.8 (8.8 percent), respectively. The Clinic is required to maintain funds held by trustees under bond indentures and other arrangements. The trustee-held investments, which primarily consist of mutual funds, were $482.3 and $354.2, respectively, at December 31, 2014 and 2013, which includes segregated investments for deferred compensation plans of $402.5 and $349.3 at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, cash and mutual funds included segregated investments owned by Mayo Foundation for Medical Education and Research, a wholly owned subsidiary of Mayo Clinic, for gift annuity reserves of $102.9 and $104.2, respectively. The Clinic has internally designated investment balances of $1,764.9 and $1,441.2 at December 31, 2014 and 2013, respectively, for research, education, and capital replacement and expansion.


17


Investment return consisted of the following for the years ended December 31:

2014 2013

Dividends and interest 116.9$ 94.8$ Net realized gains 166.4 172.1 Net change in unrealized gains 119.3 336.1

402.6$ 603.0$ Investment return (Note 1) is reported in the consolidated statements of activities as follows for the years ended December 31:

2014 2013

Investment return allocated to current activities 172.9$ 169.9$ Unallocated investment return, net 229.7 433.1

402.6$ 603.0$

Note 5. Securities Lending

The Clinic has an arrangement with its investment custodian to lend Clinic securities to approved brokers in exchange for a fee. Among other provisions that limit the Clinic’s risk, the securities lending agreement specifies that the custodian is responsible for lending securities and obtaining adequate collateral from the borrower. Collateral is limited to cash, government securities, and irrevocable letters of credit. Investments are loaned to various brokers and are returnable on demand. In exchange, the Clinic receives collateral. The cash collateral is shown as both an asset and a liability on the consolidated statements of financial position. At December 31, 2014 and 2013, the aggregate market value of securities on loan under securities lending agreements totaled $90.8 and $78.9, respectively, and the total value of the collateral supporting the securities is $93.7 and $80.7, respectively, which represents 103 percent and 102 percent of the value of the securities on loan at December 31, 2014 and 2013, respectively. The cash portion of the collateral supporting the securities as of December 31, 2014 and 2013, is $85.2 and $78.7, respectively. Noncash collateral provided to the Clinic is not recorded in the consolidated statements of financial position, as the collateral may not be sold or re-pledged. The Clinic’s claim on such collateral is limited to the market value of loaned securities. In the event of nonperformance by the other parties to the securities lending agreements, the Clinic could be exposed to some loss.


18

Note 6. Property, Plant and Equipment, Net

Property, plant and equipment, net at December 31 consisted of the following:

2014 2013

Land 268.9$ 256.6$ Buildings and improvements 4,953.4 4,659.8 Furniture and equipment 3,080.7 2,931.2

8,303.0 7,847.6

Accumulated depreciation (4,659.1) (4,342.8) 3,643.9 3,504.8

Construction in progress 412.9 473.4 4,056.8$ 3,978.2$

The above costs and accumulated depreciation include costs for capitalized software, including costs capitalized in accordance with the Intangibles—Goodwill and Other, Internal-Use Software subtopic of the FASB ASC Topic 350. The total cost for capitalized software was $507.7 and $474.3, and the total accumulated amortization was $417.4 and $369.4 at December 31, 2014 and 2013, respectively. Amortization expense for capitalized software was $48.0 and $49.8 for 2014 and 2013, respectively. The Hospital Authority of Ware County, Georgia (Authority), owns the property, plant and equipment of the Clinic’s affiliate located in Waycross, Georgia, which it leases to the affiliate. The lease agreement also includes any assets acquired by the Authority and any debt issued or refinanced by the Authority for the benefit of the affiliate. The lease is for a term of 40 years in return for paying the currently maturing installments of principal and interest on any revenue anticipation certificates issued for the benefit of the affiliate by the Authority. The net book value of these assets at December 31, 2014 and 2013, was $64.2 and $60.0, respectively. Currently, there is no debt upon which the Clinic is obligated.

Note 7. Income Taxes

Most of the income received by the Clinic and its subsidiaries is exempt from taxation under Section 501(a) of the Internal Revenue Code. Some of its subsidiaries are taxable entities, and some of the income received by otherwise exempt entities is subject to taxation as unrelated business income (UBI). The Clinic or its subsidiaries file income tax returns in the U.S. federal, various state, and foreign jurisdictions. The statutes of limitations for tax years 2011 through 2013 remain open in the major U.S. taxing jurisdictions in which the Clinic and subsidiaries are subject to taxation. In addition, for all tax years prior to 2011 generating or utilizing a net operating loss (NOL), tax authorities can adjust the amount of NOL carryforward to subsequent years. The Internal Revenue Service (IRS) performed an examination of the tax and information returns of the Clinic and two subsidiaries for 2005 and 2006. As a result of the audit by the IRS, one remaining entity has extended the statutes of limitations for tax years 2005 through 2009 until June 30, 2015. The IRS began a limited-scope audit of one entity for tax year 2011 and has extended the statutes of limitations until December 31, 2015, for that entity for 2010–2011. As of December 31, 2014, the IRS proposed a $10.6 tax and interest assessment for 2005–2009 that the Clinic paid. The Clinic anticipates filing and ultimately receiving a claim for refund for these amounts, and litigating any denial of such claims, which management has taken into consideration during its determination of unrecognized tax benefits.


19

Note 7. Income Taxes (Continued)

The Clinic’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The components of tax expense are as follows:

December 312014 2013

Current—federal 25.9$ 19.2$ Current—state 2.0 3.1

27.9 22.3

Deferred—federal 4.0 15.9 Deferred—state 0.9 (1.9) Change in valuation allowance (0.6) (14.2)

4.3 (0.2) Total 32.2$ 22.1$ Cash payments for income taxes were $47.0 and $19.6 for the years ended December 31, 2014 and 2013, respectively. The Clinic records deferred income taxes due to temporary differences between financial reporting and tax reporting for certain assets and liabilities of its taxable activities. Following is a summary of the components of deferred taxes as of December 31:

2014 2013

Deferred compensation 20.9$ 20.6$ Pension 16.2 6.0 Postretirement benefits 2.9 4.1 Other 4.9 4.8 Total deferred tax asset 44.9 35.5

Deferred tax liability (3.8) - Valuation allowance, net of effects from affiliation (0.8) (1.4) Net deferred tax asset 40.3$ 34.1$

Current 2.6$ 2.4$ Noncurrent 37.7 31.7

40.3$ 34.1$ As of December 31, 2014, the Clinic had no federal net operating losses.


20

Note 8. Financing

Long-term debt at December 31 consisted of the following:

2014 2013City of Rochester, Minnesota Revenue Bonds issued in various

series, subject to variable interest rates to a maximum rate of 15.00% (the average rate was 0.07% in 2014 and 0.11% in 2013),principal due in varying amounts from 2019 through 2052 810.0$ 690.0$

City of Rochester, Minnesota Revenue Bonds issued in various series with fixed rates of interest ranging from 4.00% to 5.00%, principal due in varying amounts from 2028 through 2041 690.0 690.0

Industrial Development Authority of the City of Phoenix, Arizonaissued in various series, subject to variable interest rates toa maximum rate of 10.00% (the average rate was 0.04% in 2014), principal due in varying amounts from 2048 through 2052 180.0 -

Industrial Development Authority of the County of Maricopa HospitalRevenue Bonds issued in various series, interest rate at 5.00%,principal due in varying amounts from 2031 through 2036 50.0 50.0

Jacksonville Economic Development Commission Health Care Facilities Revenue Bonds issued in various series, interest rateat 5.00%, principal due in varying amounts from 2031 to 2036 125.0 125.0

Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 2008, issued in various series, with fixed interest rates ranging from 4.00% to 5.75%, principal due in varying amounts through 2030 77.7 81.0

Mayo Clinic Taxable Bonds issued with fixed interest ranging from 3.774% to 4.0%, principal due in varying amounts from2039 to 2047 600.0 600.0

Fixed-rate notes, payable to banks, interest rate at 2.01%, principal due in varying amounts through 2016 90.0 135.0

Fixed-rate notes, payable to an insurance company, interest rate at4.71%, principal due in equal amounts from 2042 through 2046 215.0 215.0

Other notes payable 17.2 19.3 Unamortized discounts and premiums, net 5.1 5.4

2,860.0 2,610.7

Long-term variable-rate debt classified as current (360.0) (240.0) Current maturities included in other current liabilities (49.7) (49.5)

2,450.3$ 2,321.2$ The Clinic’s outstanding revenue bond issues are limited obligations of various issuing authorities payable solely by the Clinic pursuant to loan agreements between the borrowing entities and the issuing authorities. Under various financing agreements, the Clinic must meet certain operating and financial performance covenants.


21

Note 8. Financing (Continued)

At December 31, 2014, the $990.0 of variable-rate bonds consist of variable-rate demand revenue bonds. In conjunction with the issuance of the variable-rate demand revenue bonds, the Clinic has entered into various bank standby purchase and credit agreements in the amount of $630.0 that expire at various dates commencing January 2016. Under the terms of these agreements, the bank will make liquidity loans to the Clinic in the amount necessary to purchase a portion of the variable-rate demand revenue bonds if not remarketed. The liquidity loans would be payable over a three- to five-year period, with the first payment due after December 31, 2015. The Clinic has provided self-liquidity for the remaining $360.0 of variable-rate demand revenue bonds, which have been classified as current in the accompanying consolidated statements of financial position. In May 2014, the Clinic issued tax-exempt, variable-rate demand revenue bonds in the aggregate principal amount of $300.0 (Industrial Development Authority of the City of Phoenix, Arizona for $180.0 and City of Rochester, Minnesota Revenue Bonds for $120.0), due November 15, 2052. The bonds are redeemable prior to maturity at par. The bond proceeds will be used for the construction of proton beam radiation therapy centers located in Rochester, Minnesota, and Phoenix, Arizona, and other capital projects involving renovations or acquisition of capital equipment and construction. All fixed-rate interest revenue bonds are callable from 2015 to 2046 at the option of the Clinic, at a redemption price of 100 percent of the principal amount or at a price based on U.S. Treasury rates at the time of redemption. The following are scheduled maturities of long-term debt for each of the next five years, assuming the variable-rate demand revenue bonds are remarketed and the standby purchase agreements renewed. As described above, if such bonds are not remarketed, $360.0 may be due in 2015 and $630.0 may be due in years from 2016 to 2020. Years Ending December 31,

2015 49.7$ 2016 49.0 2017 4.1 2018 4.4 2019 6.3 Interest payments on long-term debt, net of amounts capitalized for 2014 and 2013, totaled $80.7 and $79.8, respectively. The amount of interest capitalized, net of related interest income, was $5.4 and $10.1 during 2014 and 2013, respectively. Interest expense totaled $80.4 and $80.2 for 2014 and 2013, respectively. At December 31, 2014 and 2013, the Clinic had unsecured lines of credit available with banks totaling $325.0, with varying renewable terms and interest up to 0.25 percent over various published rates. There were no amounts drawn at December 31, 2014 and 2013.


22

Note 9. Lease Commitments

Certain leases are classified as capital leases. The leased assets are included as part of property, plant and equipment (Note 6), and the capital lease obligations of $27.8 and $28.2 as of December 31, 2014 and 2013, respectively, are recorded in other current and long-term liabilities. Other leases are classified as operating and are not capitalized. The payments on such leases are recorded as expense. Details of the capitalized lease assets, excluding the Waycross, Georgia, lease, are as follows at December 31:

2014 2013

Buildings and equipment 34.3$ 35.1$ Furniture and equipment 4.0 3.9

38.3 39.0

Accumulated depreciation (9.5) (7.7) 28.8$ 31.3$

Rental expense incurred for operating leases was $26.9 and $27.4 for the years ended December 31, 2014 and 2013, respectively. At December 31, 2014, the estimated future minimum lease payments under noncancellable operating leases and capital leases, excluding the Waycross, Georgia, lease, were as follows: Years Ending December 31, Operating Capital

2015 22.8$ 3.2$ 2016 18.9 2.6 2017 15.5 2.5 2018 11.6 2.2 2019 7.2 1.7 Thereafter 34.8 22.2 Minimum lease payments 110.8$ 34.4

Less amount representing interest (6.6) Net minimum lease payments under capital leases 27.8$


23

Note 10. Contributions and Restricted Expenditures

The Clinic receives unrestricted, temporarily restricted, and permanently restricted contributions in support of research, education and clinical activities. Temporarily restricted net assets were available for the following at December 31:

2014 2013

Research 554.1$ 508.2$ Education 274.5 258.2 Buildings and equipment 23.6 21.9 Charity care 50.8 45.7 Clinical 91.5 83.6 Other 36.5 33.2 Pledges and trusts 291.6 299.2

1,322.6$ 1,250.0$ Permanently restricted net assets at December 31 are summarized below, the income from which is expendable to support the following:

2014 2013

Research 620.1$ 541.9$ Education 187.7 168.6 Charity care 11.8 9.8 Clinical 51.5 43.3 Other 17.5 33.0 Pledges and trusts 218.9 192.3

1,107.5$ 988.9$ Net assets were released from donor restrictions as expenditures were made, which satisfied the following restricted purposes for the years ended December 31:

2014 2013

Research 123.9$ 113.1$ Education 20.8 20.8 Buildings and equipment 11.6 16.9 Other 23.5 15.3

179.8$ 166.1$


24

Note 10. Contributions and Restricted Expenditures (Continued)

At December 31, outstanding pledges from various corporations, foundations and individuals, included in other receivables and other long-term assets, were as follows:

2014 2013Pledges due:

In less than one year 106.7$ 108.3$ In one to five years 218.7 198.0 In more than five years 26.3 22.4

351.7 328.7

Allowance for uncollectible pledges and discounts (15.8) (14.3) 335.9$ 314.4$

Estimated cash flows from pledge receivables due after one year are discounted using a risk-adjusted rate, ranging from 0.92 percent to 6.52 percent, that is commensurate with the pledges’ due dates and established in the year the pledge is received. The Clinic has received interests in various split-interest, perpetual, and charitable remainder trusts from donors, which are included in other long-term assets. The trusts, which are recorded at fair value based on the underlying value of the assets in the trust or discounted cash flow of the expected payment streams, were $184.9 and $180.2 at December 31, 2014 and 2013, respectively.

Note 11. Endowment

The Clinic’s endowment consists of approximately 1,500 individual funds established for a variety of purposes. The endowment includes both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments (board-designated funds). Net assets associated with endowment funds, including funds designated by the Board of Trustees to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Board of Trustees retains the right to re-designate board-designated funds. The Board of Trustees of the Clinic has interpreted the Minnesota State Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Clinic classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the organization in a manner consistent with the standard of prudence prescribed by SPMIFA.


25

Note 11. Endowment (Continued)

In accordance with SPMIFA, the Clinic considers the following factors in making a determination to appropriate or accumulate donor-restricted funds: 1. The duration and preservation of the fund 2. The purposes of the Clinic and the donor-restricted endowment fund 3. General economic conditions 4. The possible effect of inflation and deflation 5. The expected total return from income and the appreciation of investments 6. Other resources of the Clinic 7. The investment policies of the Clinic The Clinic has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Clinic must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the Board of Trustees, the endowment assets are invested in a manner that is intended to produce a real return, net of inflation and investment management costs, of at least five percent over the long term. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the Clinic relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Clinic targets a diversified asset allocation that places a greater emphasis on equity-based and alternative investments to achieve its long-term objective within prudent risk constraints. The Clinic has a policy of appropriating for distribution each year five percent of its endowment fund’s moving average fair value over the prior 36 months as of September 30 of the preceding fiscal year in which the distribution is planned. In establishing this policy, the Clinic considered the long-term expected return on its endowment. Accordingly, over the long term, the Clinic expects the current spending policy to allow its endowment to grow at an average of the long-term rate of inflation. This is consistent with the Clinic’s objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specific term as well as to provide additional real growth through new gifts and investment return. At December 31, 2014, the endowment net asset composition by type of fund consisted of the following:

Temporarily PermanentlyUnrestricted Restricted Restricted Total

Donor-restricted funds -$ 677.2$ 1,107.5$ 1,784.7$ Board-designated funds 1,499.8 - - 1,499.8 Total funds 1,499.8$ 677.2$ 1,107.5$ 3,284.5$


26


Changes in endowment net assets for the fiscal year ended December 31, 2014, consisted of the following:


Endowment net assets, beginning of year 1,156.3$ 625.3$ 988.9$ 2,770.5$

Investment return:Investment income 21.4 23.5 - 44.9 Net appreciation (realized and unrealized) 76.2 85.1 - 161.3

Total investment return 97.6 108.6 - 206.2

Contributions - - 103.9 103.9

Appropriation of endowment assets forexpenditure (56.3) (56.7) - (113.0)

Other changes:Transfers to create board-designated

endowment funds 309.2 - - 309.2 Reclassifications (7.0) - 14.7 7.7

Endowment net assets, end of year 1,499.8$ 677.2$ 1,107.5$ 3,284.5$ At December 31, 2013, the endowment net asset composition by type of fund consisted of the following:


Donor-restricted funds -$ 625.3$ 988.9$ 1,614.2$ Board-designated funds 1,156.3 - - 1,156.3 Total funds 1,156.3$ 625.3$ 988.9$ 2,770.5$


27


Changes in endowment net assets for the fiscal year ended December 31, 2013, consisted of the following:


Endowment net assets, beginning of year 958.3$ 479.8$ 846.5$ 2,284.6$

Investment return:Investment income 15.0 18.4 - 33.4 Net appreciation (realized and unrealized) 143.6 177.3 - 320.9

Total investment return 158.6 195.7 - 354.3

Contributions - - 142.4 142.4

Appropriation of endowment assets forexpenditure (41.6) (50.2) - (91.8)

Other changes:Transfers to create board-designated

endowment funds 81.0 - - 81.0 Endowment net assets, end of year 1,156.3$ 625.3$ 988.9$ 2,770.5$

Note 12. Functional Expenses

The expenses reported in the consolidated statements of activities supported the following:

2014 2013

Patient care 6,849.6$ 6,818.8$ Lab and technology ventures 833.9 754.0 Research 642.3 645.5 Graduate and other education 274.0 266.1 General and administrative 142.0 139.9 Development expenses 25.2 21.4 Other activities 159.3 163.0

8,926.3$ 8,808.7$


28

Note 13. Employee Benefit Programs

The Clinic serves as plan sponsor for several defined benefit pension funds and other postretirement benefits. Included in other changes in unrestricted net assets at December 31, 2014 and 2013, are the following amounts, respectively, that have not yet been recognized in net periodic cost: unrecognized actuarial losses of $2,924.0 and $1,457.4 and unrecognized prior service benefit of $733.0 and $866.8. Actuarial losses are amortized as a component of net periodic pension cost, only if the losses exceed ten percent of the greater of the projected benefit obligation or the fair value of plan assets. Unrecognized prior service benefits are amortized on a straight-line basis over the estimated life of plan participants. The unrecognized actuarial losses and prior service benefit included in net assets are expected to be recognized in net periodic pension cost during the year ending December 31, 2015, in the amount of $161.1 and $114.6, respectively. Changes in plan assets and benefit obligations recognized in unrestricted net assets during 2014 and 2013 included the following:

2014 2013

Current-year actuarial gain (loss) (1,541.0)$ 1,405.8$ Amortization of actuarial loss 84.9 174.4 Current-year prior service cost (14.7) 287.1 Amortization of prior service credit (119.1) (85.0) Pension and other postretirement benefit adjustments (1,589.9)$ 1,782.3$


29

Note 13. Employee Benefit Programs (Continued)

Pension plans: Obligations and funded status: Following is a summary of the changes in the benefit obligation and plan assets, the resulting funded status of the qualified and nonqualified pension plans, and accumulated benefit obligation as of and for the years ended December 31:

Qualified Nonqualified Qualified NonqualifiedChange in projected benefit obligation:

Benefit obligation, beginning of year 5,839.6$ 2.4$ 6,527.9$ 2.6$ Service cost 220.1 - 258.1 0.1 Interest cost 295.3 0.1 273.5 0.1 Actuarial loss (gain) 1,460.9 0.3 (883.8) (0.1) Benefits paid (462.5) (0.3) (336.1) (0.3)

Estimated benefit obligation at end of year 7,353.4$ 2.5$ 5,839.6$ 2.4$

Change in plan assets:Fair value of plan assets, beginning of year 6,181.3$ -$ 5,486.3$ -$

Actual return on plan assets 427.2 - 770.9 - Employer contributions 410.0 0.3 260.2 0.3 Benefits paid (462.5) (0.3) (336.1) (0.3)

Fair value of plan assets at end of year 6,556.0$ -$ 6,181.3$ -$

2014 2013

Funded status of the plan (797.4)$ (2.5)$ 341.7$ (2.4)$

Accumulated benefit obligation 7,288.6$ 2.5$ 5,677.1$ 2.4$ Amounts recognized in the consolidated statements of financial position consist of the following at December 31:

Qualified Nonqualified Qualified Nonqualified

Noncurrent asset -$ -$ 344.3$ -$ Current liabilities - (0.3) - (0.3) Noncurrent liabilities (797.4) (2.2) (2.6) (2.1) Net amount recognized (797.4)$ (2.5)$ 341.7$ (2.4)$

2014 2013


30


Components of net periodic benefit cost are as follows at December 31:

Qualified Nonqualified Qualified Nonqualified

Service cost 220.1$ -$ 258.1$ 0.1$ Interest cost 295.3 0.1 273.5 0.1 Expected return on plan assets (465.9) - (427.6) - Amortization of unrecognized:

Prior service benefit (60.3) - (60.3) - Net actuarial loss 82.0 0.1 162.5 -

Net periodic benefit cost 71.2$ 0.2$ 206.2$ 0.2$

2014 2013

Plan assets: The largest of the pension funds is the Mayo Clinic Master Retirement Trust Plan, which holds $6,447.4 of the $6,556.0 in combined plan assets at December 31, 2014. The investment policies described below apply to the Mayo Clinic Master Retirement Trust Plan (the Plan). The Plan employs a global, multi-asset approach in managing its retirement plan assets. This approach is designed to maximize risk-adjusted returns over a long-term investment horizon, consistent with the nature of the pension liabilities being funded. The plan asset portfolio’s target allocation for total return investment strategies, which include public equities, private equities, absolute return, and real assets, is 80.0 percent. The portfolio’s target fixed-income exposure is 20.0 percent. The fixed-income exposure may include the use of long-term interest rate swap contracts structured to increase the portfolio’s interest rate sensitivity and thereby provide a hedge of the plan liabilities resulting from falling long-term interest rates. Investments in private equities, real assets, and absolute return strategies are held to improve diversification and thereby enhance long-term, risk-adjusted returns. However, recognizing that these investments are not as liquid as publicly traded stocks and bonds, portfolio investment policies limit overall exposure to these assets. The portfolio’s allocation to private equities and real assets is limited to a maximum of 25.0 percent (with a target allocation of 20.0 percent), and exposure to absolute return strategies is limited to a maximum of 35.0 percent (with a target of 27.5 percent). The Clinic reviews performance, asset allocation, and risk management reports for plan asset portfolios on a monthly basis.


31


The fair values of the Plan’s assets at December 31, 2014, by asset category are as follows:

Quoted Pricesin Active Significant Significant

Markets for Observable UnobservableIdentical Assets Inputs Inputs

Assets (Level 1) (Level 2) (Level 3) Total

Cash and cash equivalents 240.6$ 9.9$ -$ 250.5$ Fixed-income securities:

U.S. government - 136.3 - 136.3 U.S. government agencies 23.2 111.4 - 134.6 U.S. corporate - 244.3 - 244.3 Foreign - 55.0 - 55.0

Common and preferred stocks:U.S. 478.2 0.2 26.1 504.5 Foreign 407.8 - - 407.8

Funds:Fixed-income 170.4 - - 170.4 Equities 144.7 190.0 - 334.7

Alternative investments:Absolute return and hedge funds - - 2,670.8 2,670.8 Private equity, real estate and

natural resources funds - - 1,538.5 1,538.5 Other investments - - - -

Total investments 1,464.9$ 747.1$ 4,235.4$ 6,447.4$


32


The fair values of the Plan’s assets at December 31, 2013, by asset category are as follows:

Quoted Pricesin Active Significant Significant

Markets for Observable UnobservableIdentical Assets Inputs Inputs

Assets (Level 1) (Level 2) (Level 3) Total

Cash and cash equivalents 232.2$ 23.1$ -$ 255.3$ Fixed-income securities:

U.S. government - 113.3 - 113.3 U.S. government agencies 14.3 133.6 1.9 149.8 U.S. corporate 3.0 274.8 3.3 281.1 Foreign 4.0 32.7 27.7 64.4

Common and preferred stocks:U.S. 513.1 0.2 37.6 550.9 Foreign 408.6 - - 408.6

Funds:Fixed-income 211.8 - - 211.8 Equities 135.6 198.8 - 334.4

Alternative investments:Absolute return and hedge funds - - 2,378.8 2,378.8 Private equity, real estate and

natural resources funds - - 1,324.2 1,324.2 Total investments 1,522.6$ 776.5$ 3,773.5$ 6,072.6$ The following tables are a rollforward of the pension plan assets classified by the Plan within Level 3 of the valuation hierarchy:



Fair value January 1, 2014 2,378.8 $ 1,324.2 $ 70.5 $ 3,773.5 $ Actual return on plan assets held 76.3 69.6 - 145.9 Actual return on plan assets sold

during the year 93.8 75.0 3.0 171.8 Purchases 325.1 239.0 6.5 570.6 Issuances and settlements (203.2) (169.3) (53.9) (426.4)

Fair value December 31, 2014 2,670.8 $ 1,538.5 $ 26.1 $ 4,235.4 $


33




Fair value January 1, 2013 2,097.1 $ 1,121.1 $ 17.6 $ 3,235.8 $ Actual return on plan assets held 171.1 116.4 14.9 302.4 Actual return on plan assets sold

during the year 77.3 52.3 1.0 130.6 Purchases 190.7 299.4 50.9 541.0 Issuances and settlements (157.4) (265.0) (13.9) (436.3)

Fair value December 31, 2013 2,378.8 $ 1,324.2 $ 70.5 $ 3,773.5 $ Following is a description of the Plan’s valuation methodologies for assets and liabilities measured at fair value. Fair value for Level 1 is based upon quoted market prices. Fair value for Level 2 is based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Inputs are obtained from various sources, including market participants, dealers and brokers. Level 3, which primarily consists of alternative investments (principally limited partnership interests in absolute return, hedge, private equity, real estate and natural resources funds), represents the Plan’s ownership interest in the net asset value (NAV) of the respective partnership obtained from fund manager statements and audited financial statements. Investments held by the partnerships consist of marketable securities as well as securities that do not have readily determinable fair values. The fair values of the securities held by partnerships that do not have readily determinable fair values are determined by the general partner and are based on historical cost, appraisals, or other estimates that require varying degrees of judgment. If no public market exists for the investment securities, the fair value is determined by the general partner, taking into consideration, among other things, the cost of the securities, prices of recent significant placements of securities of the same issuer, and subsequent developments concerning the companies to which the securities relate. Alternative investments are redeemable with the investee fund at NAV under the original terms of the subscription agreement. Due to the nature of these investments, changes in market conditions and the overall economic environment may significantly impact the NAV of the funds and, therefore, the value of the Plan’s interest. It is therefore reasonably possible that, if the Plan were to sell all or a portion of its alternative investments, the transaction value could be significantly different than the fair value reported as of December 31. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The following information pertains to those alternative investments recorded at net asset value in accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC.


34


At December 31, 2014, alternative investments recorded at net asset value consisted of the following:




4,209.3$ 921.1$ At December 31, 2013, alternative investments recorded at net asset value consisted of the following:




3,703.0$ 889.0$ (a) This category includes investments in absolute return/hedge funds, which are actively managed

commingled investment vehicles that derive the majority of their returns from factors other than the directional flow of the markets in which they invest. Representative strategies include high-yield credit, distressed debt, merger arbitrage, relative value, and long-short equity strategies. The fair values of the investments in this category have been estimated using the net asset value per share of the investments. Investments in this category generally carry “lockup” restrictions that do not allow investors to seek redemption in the first year after acquisition. Following the initial lockup period, liquidity is generally available monthly, quarterly or annually following a redemption request. Over 90 percent of the investments in this category have at least annual liquidity.

(b) This category includes limited partnership interests in closed-end funds that focus on venture capital,

private equity, real estate and resource-related strategies. The fair values of the investments in this category have been estimated using the net asset value of the Plan’s ownership interest in partners’ capital. These investments cannot be redeemed with the funds. Distributions from each fund will be received as the underlying investments of the funds are liquidated. It is estimated that the underlying assets of most funds will generally be liquidated over a seven- to ten-year period.

No plan assets are expected to be returned to the employer during 2015.


35


Other postretirement benefits: In 2013, the Clinic amended the Retiree Medical Plan stating eligible employees who retire on or after January 1, 2015, will not participate in the Clinic self-insured group retiree medical benefits. Instead, the Clinic will provide an employer subsidy through contributions to a Health Reimbursement Account (HRA) that the participant can use to purchase individual medical and/or prescription drug coverage. The effects of this plan amendment were reflected in the December 31, 2013, benefit obligation. Obligations and funded status: A summary of the changes in the benefit obligation and plan assets and the resulting funded status of the other postretirement plans is as follows as of and for the years ended December 31:

2014 2013Change in projected benefit obligation:

Benefit obligation at beginning of year 768.0$ 1,204.6$ Service cost 11.4 31.4 Interest cost 38.5 50.8 Plan participants’ contributions 14.4 11.2 Plan change 14.7 (289.8) Medicare subsidy 2.5 2.4 Actuarial loss 51.6 (191.8) Benefits paid (57.9) (50.8)

Estimated benefit obligation at end of year 843.2$ 768.0$

Change in plan assets:Fair value of plan assets at beginning of year -$ -$

Employer contributions 41.0 37.2 Plan participants’ contributions 14.4 11.2 Medicare subsidy 2.5 2.4 Benefits paid (57.9) (50.8)

Fair value of plan assets at end of year -$ -$

Funded status of the plan (843.2)$ (768.0)$ Amounts recognized in the consolidated statements of financial position for postretirement benefits consist of the following at December 31:

2014 2013

Current liabilities (31.7)$ (32.8)$ Noncurrent liabilities (811.5) (735.2) Net amount recognized (843.2)$ (768.0)$


36


Components of net periodic benefit cost for other postretirement benefits are as follows for the years ended December 31:

2014 2013

Service cost 11.4$ 31.4$ Interest cost 38.5 50.8 Amortization of:

Unrecognized prior service benefit (58.8) (24.7) Unrecognized net actuarial loss 2.8 11.9

Net periodic benefit cost for other postretirement benefits (6.1)$ 69.4$ The Clinic has concluded that the prescription drug benefits under its defined benefit postretirement plan are actuarially equivalent to Medicare Part D under the Medicare Modernization Act (the Act) and that the Clinic will receive the subsidy available under the Act. The following reflects the expected future Medicare Part D subsidy receipts: Years Ending December 31,

2015 4.0$ 2016 4.3 2017 4.5 2018 4.7 2019 4.9 2020–2024 26.5 A one-percentage-point change in the assumed health care cost trend rate would have the following effects:

One-Percentage- One-Percentage-Point Increase Point Decrease

Effect on total service and interest cost components in 2014 1.4$ (1.2)$ Effect on postretirement benefit obligation at December 31, 2014 34.6 (29.1) Pension and postretirement benefits: Assumptions: Weighted-average assumptions used to determine pension and postretirement benefit obligations at the measurement date are as follows:

2014 2013 2014 2013

Discount rate 4.28% 5.17% 4.20% 5.13%Rate of compensation increase 3.44% 3.52% N/A N/A

Pension Benefits Postretirement Benefits


37


Weighted-average assumptions used to determine net periodic pension and postretirement benefit cost are as follows:

2014 2013 2014 2013

Discount rate 5.17% 4.27% 5.13% 4.27%Expected long-term return on plan assets 8.00% 8.00% N/A N/ARate of compensation increase 3.52% 3.53% N/A N/A

Pension Benefits Postretirement Benefits

The Clinic utilizes a building block approach in determining the expected long-term rate of return for its plan assets. First, historical data on individual asset class returns are studied. Next, the historical correlation among and between asset class returns is studied under both normal conditions and in times of market turbulence. Then, various mixes of asset classes are considered under multiple long-term investment scenarios. Finally, after considering liquidity concerns related to the use of certain alternative asset classes, the plan sponsor selects the portfolio blend that it believes will produce the highest expected long-term return on a risk-adjusted basis. In October 2014, the Society of Actuaries issued a new base mortality table (RP-2014) and new mortality improvement scale (MP-2014). The Clinic has adopted the RP-2014 mortality table, which is consistent with the Clinic’s observed mortality experience. The Clinic adopted a modified version of the improvement scale, with the following modifications: Reduced the short-term improvement rates to reflect recent slowdown in rates observed from broad

population databases, Converged from short-term improvement rates to long-term improvement rates by 2020, to reflect

recent reduction in observed improvement rates and proximity to ultimate rate, Used long-term improvement rate of 0.75 percent, consistent with Social Security Administration’s

historical data, long-term estimates, and consideration of contributing factors impacting future mortality improvement, and

Reduced long-term improvement rate from 0.75 percent at age 85 to 0 percent at age 95 to reflect

lack of expected improvement at advanced ages. Cash flows: Contributions: The Clinic expects to contribute $552.8 to its pension plans in 2015.


38


Estimated future benefit payments: The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

PostretirementYears Ending December 31, Qualified Nonqualified Benefits

2015 335.4$ 0.3$ 28.3$ 2016 352.5 0.3 29.1 2017 383.2 0.2 30.5 2018 415.3 0.2 32.8 2019 425.8 0.2 35.1 2020–2024 2,381.6 0.9 206.5

Pension Benefits

In addition to the defined benefit plans, the Clinic sponsors various defined contribution benefit plans. Expense recognized by the Clinic for those plans was $44.3 and $42.3 for 2014 and 2013, respectively.

Note 14. General and Professional Liability Insurance

The Clinic insures substantially all general and professional liability risks through a combination of a wholly owned captive insurance company and self-insurance. The insurance program combines various levels of self-insured retention with excess commercial insurance coverage. Actuarial consultants have been retained to assist in the estimation of outstanding general and professional liability loss. The Clinic’s general and professional liability as reported in the accompanying consolidated statements of financial position was $102.7 and $112.6 at December 31, 2014 and 2013, respectively. Provisions for the general and professional liability risks are based on an actuarial estimate of losses using the Clinic’s actual loss data adjusted for industry trends and current conditions and considering an evaluation of claims by the Clinic’s legal counsel. The provision includes estimates of ultimate costs for both reported claims and claims incurred but not reported. Activity in the liability is summarized as follows for the years ended December 31:

2014 2013

Balance, beginning of year 112.6$ 122.7$

Incurred related to captive insurance company liability:Current year 23.1 25.3 Prior years (16.2) (14.1)

Total incurred 6.9 11.2

Paid related to captive insurance company liability:Current year (0.4) - Prior years (14.6) (14.8)

Total paid (15.0) (14.8)

Net change in self-insurance liability (1.8) (6.5) Balance, end of year 102.7$ 112.6$


39

Note 15. Other Receivables, Other Current and Long-Term Assets, and Other Current and Long-Term Liabilities

At December 31, other receivables consisted of the following:

2014 2013

Pledges receivable 106.7$ 108.3$ Grants receivable 48.3 51.1 Other 87.3 93.0

242.3$ 252.4$ At December 31, other current assets consisted of the following:

2014 2013

Inventories 114.1$ 100.3$ Prepaid expenses 44.0 43.6 Current portion of deferred tax asset 2.6 2.4

160.7$ 146.3$ At December 31, other long-term assets consisted of the following:

2014 2013

Pledges receivable 229.2$ 206.1$ Trust receivables 184.9 180.2 Oil and gas interests 51.4 24.8 Long-term portion of deferred tax asset 37.7 31.7 Technology-based ventures 29.8 19.6 Noncurrent pension asset - 344.3 Other 116.1 101.0

649.1$ 907.7$ At December 31, other current liabilities consisted of the following:

2014 2013

Current maturities of long-term debt 49.7$ 49.5$ Current pension and postretirement benefit 32.0 33.1 Other taxes 31.6 29.2 Short-term disability 27.9 19.4 Current portion of professional and general liability 26.1 26.3 Real estate tax accrual 23.7 20.0 Current portion of long-term disability 19.6 20.4 Current portion of workers’ compensation liability 13.9 14.2 Other 96.8 71.9

321.3$ 284.0$


40

Note 15. Other Receivables, Other Current and Long-Term Assets, and Other Current and Long-Term Liabilities (Continued)

At December 31, other long-term liabilities consisted of the following:

2014 2013

Deferred compensation 399.9$ 348.6$ Long-term disability 110.6 104.0 Professional and general liability 76.6 86.3 Gift annuities 46.4 47.2 Trust obligations 45.0 41.2 Retirement community obligations 36.3 35.7 Workers’ compensation liability 26.8 24.8 Lease agreement liability 26.4 26.9 Asset retirement obligation 22.2 23.2 Contract deposit 22.0 22.0 Other 44.9 45.6

857.1$ 805.5$

Note 16. Other Revenue

For the years ended December 31, other revenue consisted of the following:

2014 2013

Retail pharmacy sales 251.4$ 164.2$ Technology commercialization, health information, and medical

products 66.8 60.2 Royalties 52.0 38.4 Graduate medical and other education revenue 41.3 66.4 Cafeteria revenue 37.5 38.0 Incentive revenue 36.4 54.7 Oil- and gas-producing activities 23.8 0.7 Retail stores 20.0 24.8 Third-party administrative revenue 16.2 13.7 Other 191.3 169.4

736.7$ 630.5$

Note 17. Commitments and Contingencies

The Clinic has various construction projects in progress related to patient care, research, and educational facilities. The estimated costs committed to complete the various projects at December 31, 2014, approximated $437.9, all of which is expected to be expended over the next three to four years.


41

Note 17. Commitments and Contingencies (Continued)

One of the Clinic’s affiliation agreements limits the involvement of a third party in operations of a consolidated affiliate. A process exists to resolve disputes; however, in the event of an irreconcilable dispute between the parties, the agreement further provides for a one-time payment of approximately $86.7 by the consolidated affiliate to release the third party from the affiliation. Such payment would be subordinate to other debtors of the consolidated affiliated entity. No amount has been accrued in the consolidated financial statements for this contingency. While the Clinic is self-insured for a substantial portion of its general and workers’ compensation liabilities, the Clinic maintains commercial insurance coverage against catastrophic loss. Additionally, the Clinic maintains a self-insurance program for its long-term disability coverage. The provision for estimated self-insured claims includes estimates of the ultimate costs for both reported claims and claims incurred but not reported. Laws and regulations concerning government programs, including Medicare, Medicaid and various research grant programs, are complex and subject to varying interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term. As a result of nationwide investigations by governmental agencies, various health care organizations have received requests for information and notices regarding alleged noncompliance with those laws and regulations, which, in some instances, have resulted in organizations entering into significant settlement agreements. Compliance with such laws and regulations may also be subject to future government review and interpretation as well as significant regulatory action, including fines, penalties, and potential exclusion from the related programs. The Clinic expects that the level of review and audit to which it is subject will increase. There can be no assurance that regulatory authorities will not challenge the Clinic’s compliance with these laws and regulations, and it is not possible to determine the impact (if any) such claims or penalties would have upon the Clinic. The Clinic is a defendant in various lawsuits arising in the ordinary course of business and records an estimated liability for probable claims. Although the outcome of these lawsuits cannot be predicted with certainty, management believes the ultimate disposition of such matters will not have a material effect on the Clinic’s consolidated financial position or statement of activities.

Supplemental Information

42

Mayo Clinic

Mayo Clinic FloridaStatements of Financial PositionDecember 31, 2014 and 2013 (In Millions)

Assets 2014 2013Current Assets

Accounts receivable for medical services, less allowances foruncollectible accounts of $34.9 in 2014 and $35.1 in 2013 98.3$ 100.9$

Inventories and other current assets 10.1 7.7 Due from affiliates 207.7 139.0

Total current assets 316.1 247.6

Property, Plant and Equipment, net, and other long-term assets 246.4 251.2 Total assets 562.5$ 498.8$

Liabilities and Net Assets

Current LiabilitiesAccrued expenses 19.4$ 21.1$ Due to affiliates 40.1 47.4

Total current liabilities 59.5 68.5

Long-Term Debt 126.8 126.9

Other Long-Term Liabilities 2.8 3.2 Total liabilities 189.1 198.6

Net Assets Unrestricted 373.2 300.0 Temporarily restricted 0.1 0.1 Permanently restricted 0.1 0.1

Total net assets 373.4 300.2 Total liabilities and net assets 562.5$ 498.8$

43

Mayo Clinic

Mayo Clinic FloridaStatements of ActivitiesYears Ended December 31, 2014 and 2013 (In Millions)

Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Total

Revenue, gains and other support:Net medical service revenue 435.0$ -$ -$ 435.0$ 432.9$ -$ -$ 432.9$ Other 10.4 - - 10.4 10.9 - - 10.9 Net assets released from restrictions - - - - - - - -

Total revenue, gains and other support 445.4 - - 445.4 443.8 - - 443.8

Expenses:Salaries and benefits 102.2 - - 102.2 106.8 - - 106.8 Supplies and services 234.8 - - 234.8 228.7 - - 228.7 Facilities 29.3 - - 29.3 27.0 - - 27.0 Finance and investment 5.9 - - 5.9 5.1 - - 5.1

Total expenses 372.2 - - 372.2 367.6 - - 367.6

Income from current activities 73.2 - - 73.2 76.2 - - 76.2

Inter-affiliate transfers - - - - - - - - Increase in net assets 73.2 - - 73.2 76.2 - - 76.2

Net assets at beginning of year 300.0 0.1 0.1 300.2 223.8 0.1 0.1 224.0 Net assets at end of year 373.2$ 0.1$ 0.1$ 373.4$ 300.0$ 0.1$ 0.1$ 300.2$

2014 2013

Mayo Clinic

Schedule of Expenditures of Federal AwardsYear Ended December 31, 2014

CFDA Federal/Pass-Through Pass-ThroughSponsor/CFDA Description/Project Description Number Award Number Expenditures to SubrecipientsResearch and development cluster:

Department of Defense:Direct awards:

National Security Agency:Contract 12.RDC N66001-12-D-0088 2,004,457 $ -$

U.S. Air Force:Contract 12.RDC FA8650-12-C-6281 11,114 6,990

U.S. Army Medical Research and Medical Command:Military Medical Research and Development (12.420):

Military Medical Research and Development 12.420 W81XWH-10-1-0341 203,960 - Military Medical Research and Development 12.420 W81XWH-11-2-0261 1,572 - Military Medical Research and Development 12.420 W81XWH-13-1-0324 115,851 - Military Medical Research and Development 12.420 W81XWH-14-1-0291 81,028 37,258 Military Medical Research and Development 12.420 W81XWH-14-1-0486 18,365 - Military Medical Research and Development 12.420 W81XWH-10-2-0110 274,468 - Military Medical Research and Development 12.420 W81XWH-13-1-0098 316,777 - Military Medical Research and Development 12.420 W81XWH-13-1-0119 225,021 - Military Medical Research and Development 12.420 W81XWH-13-1-0485 118,112 - Military Medical Research and Development 12.420 W81XWH-13-2-0038 391,729 - Military Medical Research and Development 12.420 W81XWH-11-1-0744 128,447 - Military Medical Research and Development 12.420 W81XWH-11-2-0058 561,382 392,093 Contract 12.RDC HR0011-14-C-0037 230,818 - Contract 12.RDC SPPDG-13-D-0123 2,791,082 - Contract 12.RDC SPPDG-08-C-1029 46,749 - Contract 12.RDC SPPDG-10-D-0043 3,232,049 311,002

U.S. Army Medical Research and Material Command:Basic Scientific Research (12.431):

Basic Scientific Research 12.431 W911NF-09-1-0095 11,272 - Department of the Navy, Office of the Chief of Naval Research:

Basic and Applied Scientific Research (12.300):Basic and Applied Scientific Research 12.300 N00014-14-1-0564 13,219 - Subtotal direct awards 10,777,472 747,343

Pass-through awards:

Arizona State University:Military Medical Research and Development 12.420 W81XWH-12-1-0583 3,681 -

Northern California Institute for Research and Education:Military Medical Research and Development 12.420 W81XWH-13-1-0259 41,579 -

Eastern Virginia Medical School:Military Medical Research and Development 12.420 W81XWH-10-1-0419 759 -

General Dynamics Information Technology:Contract 12.RDC W911QY-09-D-0044 271,851 -

Henry Ford Health System:Military Medical Research and Development 12.420 W81XWH-12-1-0270 7,523 -

The Henry M Jackson Foundation:Contract 12.RDC HU0001-11-1-0004 1,999 -

Institute of Neurodegenerative Disorders:Military Medical Research and Development 12.420 W81XWH-06-1-0678 51 -

Northern California Institute for Research and Education:Military Medical Research and Development 12.420 W81XWH-12-2-0012 131,842 -

Oklahoma State University:Basic Scientific Research 12.351 HDTRA1-13-0042 247,260 -

The Parkinson’s Institute:Military Medical Research and Development 12.420 W81XWH-11-1-0310 5,953 -

Renaissance Sciences Corporation:Military Medical Research and Development 12.420 N00014-14-1-0351 16,138 -

Rutgers University:Military Medical Research and Development 12.420 W81XWH-08-2-0034 210,516 -

University of Cincinnati:Military Medical Research and Development 12.420 W81XWH-10-1-0885 3,502 -

44

Mayo Clinic

Schedule of Expenditures of Federal Awards (Continued)Year Ended December 31, 2014

CFDA Federal/Pass-Through Pass-ThroughSponsor/CFDA Description/Project Description Number Award Number Expenditures to SubrecipientsResearch and development cluster (continued):

Department of Defense (continued):Pass-through awards (continued):

University of Delaware:Military Medical Research and Development 12.420 W81XWH-11-3-0222 86,748 -

University of Pennsylvania:Research and Technology Development 12.910 N66001-14-2-4-31 83,789 -

University of Tennessee:Military Medical Research and Development 12.420 W81XWH-14-1-0367 5,220 -

Vivonics, Inc.:Contract 12.RDC N00014-13-C-0360 41,853 - Contract 12.RDC W81XWH-14-C-0009 10,001 -

Wake Forest:Military Medical Research and Development 12.420 W81XWH-14-2-0003 254,204 -

Wyle:Contract 12.RDC FA8650-12-D-6280 408,194 15,005

Subtotal pass-through awards 1,832,663 15,005 Total Department of Defense 12,610,135 762,348

Department of Education:Direct awards:

Office of Special Education and Rehabilitative Services:National Institute on Disability and Rehabilitation Research

(84.133):National Institute on Disability and Rehabilitation Research 84.133 H133A120026 419,405 3,668 Subtotal direct awards 419,405 3,668


Advanced Medical Electronics Corporation:National Institute on Disability and Rehabilitation Research 84.133 H133S130047 11,191 -

Subtotal pass-through awards 11,191 - Total Department of Education 430,596 3,668

Department of Energy:Direct awards:

Office of Science Financial Assistance Program (81.049):Office of Science Financial Assistance Program 81.049 DE-SC0008947 274,418 113,474

Subtotal direct awards 274,418 113,474


University of California—Berkeley:Contract 81.RDC DE-AC02-05CH11231 127 -

Northeastern University:Contract 81.RDC DE-SC0005251 9,684 -

Subtotal pass-through awards 9,811 - Total Department of Energy 284,229 113,474

Department of Health and Human Services:Direct awards:

Agency for Healthcare Research and Quality:Research on Healthcare Costs, Quality and Outcomes (93.226):

Research on Healthcare Costs, Quality and Outcomes 93.226 HS22008 320,091 94,303 Research on Healthcare Costs, Quality and Outcomes 93.226 HS22126 94,728 33,344 Research on Healthcare Costs, Quality and Outcomes 93.226 HS22799 30,610 - Research on Healthcare Costs, Quality and Outcomes 93.226 HS18339 96,898 9,395 Research on Healthcare Costs, Quality and Outcomes 93.226 HS22911 19,782 - Research on Healthcare Costs, Quality and Outcomes 93.226 HS22923 29,081 - Research on Healthcare Costs, Quality and Outcomes 93.226 HS23077 104,488 -

45

Mayo Clinic



Department of Health and Human Services (continued):Direct awards (continued):

Centers for Disease Control and Prevention:Global AIDS (93.067):

Global AIDS 93.067 GH00221 104,936 - Tuberculosis Demonstration, Research, Public and

Professional Education (93.947):Tuberculosis Demonstration, Research, Public and

Professional Education 93.947 PS04096 1,090,655 - Centers for Medicare & Medicaid Services:

Health Care Innovation Awards (93.610):Health Care Innovation Awards 93.610 1C1CMS330964 7,988,297 2,651,715

Food and Drug Administration:Food and Drug Administration-Research (93.103):

Food and Drug Administration-Research 93.103 FD003938 130,911 - Food and Drug Administration-Research 93.103 FD04781 11,716 - Food and Drug Administration-Research 93.103 FD04789 45,742 -

National Institutes of Health:Environmental Health (93.113):

Environmental Health 93.113 ES20715 296,915 - Environmental Health 93.113 ES24871 47,188 -

Oral Diseases and Disorders Research (93.121):Oral Diseases and Disorders Research 93.121 DE14036 457,424 41,821 Oral Diseases and Disorders Research 93.121 DE20194 424,588 -

Human Genome Research (93.172):Human Genome Research 93.172 HG06379 1,202,827 - Human Genome Research 93.172 HG06431 325,427 - Human Genome Research 93.172 HG05137 152,077 -

Research Related to Deafness and Communication Disorders(93.173):Research Related to Deafness and Communication Disorders 93.173 DC10367 300,042 - Research Related to Deafness and Communication Disorders 93.173 DC12519 378,876 -

Research and Training in Complementary and Alternative Medicine (93.213):Research and Training in Complementary and Alternative

Medicine 93.213 AT06515 945,412 526,403 National Center on Sleep Disorders Research (93.233):

National Center on Sleep Disorders Research 93.233 HL96750 503,984 - National Center on Sleep Disorders Research 93.233 HL114024 590,597 - National Center on Sleep Disorders Research 93.233 HL65176 236,997 -

Mental Health Research Grants (93.242):Mental Health Research Grants 93.242 MH79261 166,862 18,496 Mental Health Research Grants 93.242 MH86130 6,024 - Mental Health Research Grants 93.242 MH100468 128,528 - Mental Health Research Grants 93.242 MH87747 19,212 - Mental Health Research Grants 93.242 MH100266 141,513 - Mental Health Research Grants 93.242 MH102244 88,003 - Mental Health Research Grants 93.242 MH103632 26,072 - Mental Health Research Grants 93.242 MH90115 259,326 - Mental Health Research Grants 93.242 MH93522 605,985 45,391

Alcohol Research Programs (93.273):Alcohol Research Programs 93.273 AA18779 192,099 -

Alcohol Research Programs 93.273 AA19976 563,826 201,944

Alcohol Research Programs 93.273 AA21171 378,638 -

Alcohol Research Programs 93.273 AA21788 484,158 -

46

Mayo Clinic




National Institutes of Health (continued):

Drug Abuse and Addiction Research Programs (93.279):Drug Abuse and Addiction Research Programs 93.279 DA31340 793,090 357,159 Drug Abuse and Addiction Research Programs 93.279 DA23979 22,950 - Drug Abuse and Addiction Research Programs 93.279 DA35546 39,154 - Drug Abuse and Addiction Research Programs 93.279 DA34475 35,507 -

Discovery and Applied Research for Technological Innovationsto Improve Human Health (93.286):Discovery and Applied Research for Technological

Innovations to Improve Human Health 93.286 EB00306 683,453 - Discovery and Applied Research for Technological


Innovations to Improve Human Health 93.286 EB17185 909,434 27,231 Discovery and Applied Research for Technological





Innovations to Improve Human Health 93.286 EB02167 835,518 199,267 Discovery and Applied Research for Technological


Innovations to Improve Human Health 93.286 EB17095 482,350 97,808 Minority Health and Health Disparities Research (93.307):

Minority Health and Health Disparities Research 93.307 MD08934 19,109 - Trans-NIH Research Support (93.310):

Trans-NIH Research Support 93.310 OD07015 329,546 - Trans-NIH Research Support 93.310 DK100469 1,586,696 - Trans-NIH Research Support 93.310 HG06379 79,768 - Trans-NIH Research Support 93.310 TR000954 707,716 - Trans-NIH Research Support 93.310 CA195764 294 - Trans-NIH Research Support 93.310 EB20381 15,565 2,997 Trans-NIH Research Support 93.310 TR00884 397,323 4,887

National Center for Advancing Translational Sciences (93.350):National Center for Advancing Translational Sciences 93.350 TR00135 8,729,418 5,432 National Center for Advancing Translational Sciences 93.350 TR00136 1,999,793 - National Center for Advancing Translational Sciences 93.350 TR00137 471,743 - National Center for Advancing Translational Sciences 93.350 TR000954 61,119 -

Nursing Research (93.361):Nursing Research 93.361 NR12984 156,310 26,225 Nursing Research 93.361 NR14253 157,812 -

National Center for Research Resources (93.389):National Center for Research Resources 93.389 RR24150 734 -

Cancer Cause and Prevention Research (93.393):Cancer Cause and Prevention Research 93.393 CA138417 33,512 -

Cancer Cause and Prevention Research 93.393 CA140290 263,098 -


Cancer Cause and Prevention Research 93.393 CA154517 495,307 334,787





47

Mayo Clinic




National Institutes of Health (continued):

Cancer Cause and Prevention Research (93.393) (continued):Cancer Cause and Prevention Research 93.393 CA175462 96,625 -














Cancer Cause and Prevention Research 93.393 CA154300 1,053,120 688,801





Cancer Cause and Prevention Research 93.393 CA77839 2,124,784 1,391,378

Cancer Cause and Prevention Research 93.393 CA152433 332 35,949











Cancer Cause and Prevention Research 93.393 CA132718 82,265 (4,445)



Cancer Cause and Prevention Research 93.393 CA168709 349,121 - Cancer Detection and Diagnosis Research (93.394):

Cancer Detection and Diagnosis Research 93.394 CA148994 485,623 - Cancer Detection and Diagnosis Research 93.394 CA152045 662,563 379,785 Cancer Detection and Diagnosis Research 93.394 CA168575 448,479 38,780 Cancer Detection and Diagnosis Research 93.394 CA169709 219,319 - Cancer Detection and Diagnosis Research 93.394 CA176422 190,970 - Cancer Detection and Diagnosis Research 93.394 CA177734 355,384 - Cancer Detection and Diagnosis Research 93.394 CA178200 243,262 - Cancer Detection and Diagnosis Research 93.394 CA83724 40,507 5,044 Cancer Detection and Diagnosis Research 93.394 CA134345 178,527 - Cancer Detection and Diagnosis Research 93.394 CA134466 330,182 86,521 Cancer Detection and Diagnosis Research 93.394 CA127235 17,843 - Cancer Detection and Diagnosis Research 93.394 CA174723 239,168 65,518 Cancer Detection and Diagnosis Research 93.394 CA177333 57,488 - Cancer Detection and Diagnosis Research 93.394 CA180940 29,576 - Cancer Detection and Diagnosis Research 93.394 CA183968 358,306 - Cancer Detection and Diagnosis Research 93.394 CA187112 18,022 - Cancer Detection and Diagnosis Research 93.394 CA187462 36,214 - Cancer Detection and Diagnosis Research 93.394 CA160045 541,438 - Cancer Detection and Diagnosis Research 93.394 CA164204 116,231 -

48

Mayo Clinic




National Institutes of Health (continued):Cancer Detection and Diagnosis Research (93.394) (continued):

Cancer Detection and Diagnosis Research 93.394 CA164232 27,620 - Cancer Detection and Diagnosis Research 93.394 CA167326 115,713 29,284 Cancer Detection and Diagnosis Research 93.394 CA168762 407,135 - Cancer Detection and Diagnosis Research 93.394 CA170062 309,736 - Cancer Detection and Diagnosis Research 93.394 CA170357 686,977 -

Cancer Treatment Research (93.395):Cancer Treatment Research 93.395 CA114336 253,188 - Cancer Treatment Research 93.395 CA154348 127,222 - Cancer Treatment Research 93.395 CA155295 356,784 - Cancer Treatment Research 93.395 CA174779 193,777 - Cancer Treatment Research 93.395 CA175386 189,339 - Cancer Treatment Research 93.395 CA175795 101,930 - Cancer Treatment Research 93.395 CA179157 107,679 1,519 Cancer Treatment Research 93.395 CA180790 276,525 - Cancer Treatment Research 93.395 CA180821 17,558 - Cancer Treatment Research 93.395 CA180882 5,508,244 2,752,956 Cancer Treatment Research 93.395 CA180997 5,101 - Cancer Treatment Research 93.395 CA185072 21,105 - Cancer Treatment Research 93.395 CA186686 460,867 - Cancer Treatment Research 93.395 CA186976 4,739 - Cancer Treatment Research 93.395 CA189823 1,044,463 18,192 Cancer Treatment Research 93.395 CA190045 94,185 - Cancer Treatment Research 93.395 CA191028 14,975 - Cancer Treatment Research 93.395 CA33601 4,044,550 3,951,314 Cancer Treatment Research 93.395 CA125750 2,788 - Cancer Treatment Research 93.395 CA135011 4,867 - Cancer Treatment Research 93.395 CA13650 11,080 63 Cancer Treatment Research 93.395 CA129193 219,909 - Cancer Treatment Research 93.395 CA130878 133,172 - Cancer Treatment Research 93.395 CA116623 301,936 - Cancer Treatment Research 93.395 CA136945 268,936 - Cancer Treatment Research 93.395 CA139389 67,233 - Cancer Treatment Research 93.395 CA167511 414,079 - Cancer Treatment Research 93.395 CA177686 341,088 - Cancer Treatment Research 93.395 CA178979 259,740 - Cancer Treatment Research 93.395 CA136494 6,068 - Cancer Treatment Research 93.395 CA114740 554,059 - Cancer Treatment Research 93.395 CA25224 2,955,372 112,220 Cancer Treatment Research 93.395 CA136547 96,929 - Cancer Treatment Research 93.395 CA141121 122,402 - Cancer Treatment Research 93.395 CA138461 167,509 - Cancer Treatment Research 93.395 CA132780 227,611 - Cancer Treatment Research 93.395 CA69912 147,375 - Cancer Treatment Research 93.395 CA129949 2,854 - Cancer Treatment Research 93.395 CA107476 232,021 - Cancer Treatment Research 93.395 CA136665 342,051 - Cancer Treatment Research 93.395 CA133996 110,233 - Cancer Treatment Research 93.395 CA107082 187,298 - Cancer Treatment Research 93.395 CA133049 364,110 88,374 Cancer Treatment Research 93.395 CA150190 430,185 203,129 Cancer Treatment Research 93.395 CA148747 273,322 - Cancer Treatment Research 93.395 CA124614 187,570 - Cancer Treatment Research 93.395 CA134514 304,715 - Cancer Treatment Research 93.395 CA153000 254,190 - Cancer Treatment Research 93.395 CA163293 292,069 28,498

49

Mayo Clinic




National Institutes of Health (continued):Cancer Treatment Research (93.395) (continued):

Cancer Treatment Research 93.395 CA163803 710,383 31,313 Cancer Treatment Research 93.395 CA166741 315,121 18,537 Cancer Treatment Research 93.395 CA168719 398,444 -

Cancer Biology Research (93.396):Cancer Biology Research 93.396 CA148940 328,697 - Cancer Biology Research 93.396 CA151351 390,493 - Cancer Biology Research 93.396 CA154387 253,133 - Cancer Biology Research 93.396 CA166347 336,682 71,597 Cancer Biology Research 93.396 CA166635 124,488 - Cancer Biology Research 93.396 CA168983 195,949 - Cancer Biology Research 93.396 CA170006 310,076 - Cancer Biology Research 93.396 CA177865 199,171 - Cancer Biology Research 93.396 CA132734 3 - Cancer Biology Research 93.396 CA96985 444,735 - Cancer Biology Research 93.396 CA160069 944 - Cancer Biology Research 93.396 CA164241 572,947 - Cancer Biology Research 93.396 CA104125 94,313 - Cancer Biology Research 93.396 CA64389 412,302 - Cancer Biology Research 93.396 CA136526 73,222 - Cancer Biology Research 93.396 CA116201 2,269,989 194,979 Cancer Biology Research 93.396 CA160436 119,756 - Cancer Biology Research 93.396 CA178627 46,059 - Cancer Biology Research 93.396 CA184320 24,697 - Cancer Biology Research 93.396 CA184502 406,177 - Cancer Biology Research 93.396 CA184817 171,686 - Cancer Biology Research 93.396 CA149039 309,460 - Cancer Biology Research 93.396 CA140182 186,779 - Cancer Biology Research 93.396 CA129344 69,343 - Cancer Biology Research 93.396 CA78383 146,682 - Cancer Biology Research 93.396 CA130908 191,159 - Cancer Biology Research 93.396 CA159222 232,515 - Cancer Biology Research 93.396 CA165076 456,383 -

Cancer Centers Support Grants (93.397):Cancer Centers Support Grants 93.397 CA15083 5,295,481 1,153 Cancer Centers Support Grants 93.397 CA136393 1,471,933 130,622 Cancer Centers Support Grants 93.397 CA102701 1,916,657 - Cancer Research Manpower 93.397 CA108961 2,177,275 - Cancer Centers Support Grants 93.397 CA153605 1,093,766 493,633

Cancer Research Manpower (93.398):Cancer Research Manpower 93.398 CA92049 24,963 - Cancer Research Manpower 93.398 CA90628 1,114,181 - Cancer Research Manpower 93.398 CA133183 149,350 - Cancer Research Manpower 93.398 CA163054 12,940 - Cancer Research Manpower 93.398 CA168984 127,133 - Cancer Research Manpower 93.398 CA178189 139,364 - Cancer Research Manpower 93.398 CA180299 38,211 - Cancer Research Manpower 93.398 CA180698 39,102 - Cancer Research Manpower 93.398 CA131099 69,245 - Cancer Research Manpower 93.398 CA160345 154,393 - Cancer Research Manpower 93.398 CA142885 66,049 - Cancer Research Manpower 93.398 CA148073 226,743 - Cancer Research Manpower 93.398 CA159391 166,838 - Cancer Research Manpower 93.398 CA168117 21,714 - Cancer Research Manpower 93.398 CA169443 149,548 - Cancer Research Manpower 93.398 CA183507 31,124 -

50

Mayo Clinic




National Institutes of Health (continued):Cancer Research Manpower (93.398) (continued):

Cancer Research Manpower 93.398 CA187035 12,103 - Cancer Research Manpower 93.398 CA189339 12,173 -

Cancer Control (93.399):Cancer Control 93.399 CA149950 862,996 337,059 Cancer Control 93.399 CA37404 2,114,775 215,036 Cancer Control 93.399 CA113681 344,064 -

Heart and Vascular Diseases Research (93.837):Heart and Vascular Diseases Research 93.837 HL106993 28,211 - Heart and Vascular Diseases Research 93.837 HL107304 438,947 - Heart and Vascular Diseases Research 93.837 HL84155 88,297 - Heart and Vascular Diseases Research 93.837 HL85744 285,997 - Heart and Vascular Diseases Research 93.837 HL111121 456,820 - Heart and Vascular Diseases Research 93.837 HL113371 285,660 26,197 Heart and Vascular Diseases Research 93.837 HL113796 162,234 - Heart and Vascular Diseases Research 93.837 HL116643 125,906 - Heart and Vascular Diseases Research 93.837 HL117359 253,957 - Heart and Vascular Diseases Research 93.837 HL85631 638,610 456,351 Heart and Vascular Diseases Research 93.837 HL76611 2,456,837 10,283 Heart and Vascular Diseases Research 93.837 HL89645 210,035 - Heart and Vascular Diseases Research 93.837 HL89709 726,117 238,344 Heart and Vascular Diseases Research 93.837 HL77131 186,067 - Heart and Vascular Diseases Research 93.837 HL70567 355,108 - Heart and Vascular Diseases Research 93.837 HL67933 316,440 - Heart and Vascular Diseases Research 93.837 HL81753 355,118 - Heart and Vascular Diseases Research 93.837 HL95572 183,918 - Heart and Vascular Diseases Research 93.837 HL36634 475,793 - Heart and Vascular Diseases Research 93.837 HL70620 268,322 - Heart and Vascular Diseases Research 93.837 HL92954 96,930 - Heart and Vascular Diseases Research 93.837 HL71225 342,255 - Heart and Vascular Diseases Research 93.837 HL83797 29,344 - Heart and Vascular Diseases Research 93.837 HL91867 8,492 - Heart and Vascular Diseases Research 93.837 HL98077 851,061 334,728 Heart and Vascular Diseases Research 93.837 HL94680 339,034 153,840 Heart and Vascular Diseases Research 93.837 HL07111 272,551 - Heart and Vascular Diseases Research 93.837 HL83947 482,337 - Heart and Vascular Diseases Research 93.837 HL116952 135,693 - Heart and Vascular Diseases Research 93.837 HL118154 97,504 - Heart and Vascular Diseases Research 93.837 HL119337 236,587 14,402 Heart and Vascular Diseases Research 93.837 HL120570 37,525 - Heart and Vascular Diseases Research 93.837 HL120859 135,494 - Heart and Vascular Diseases Research 93.837 HL120957 468,043 - Heart and Vascular Diseases Research 93.837 HL121079 19,503 - Heart and Vascular Diseases Research 93.837 HL121561 232,815 - Heart and Vascular Diseases Research 93.837 HL123160 2,393 - Heart and Vascular Diseases Research 93.837 HL71478 195,017 - Heart and Vascular Diseases Research 93.837 HL98502 369,532 - Heart and Vascular Diseases Research 93.837 HL85208 227,226 - Heart and Vascular Diseases Research 93.837 HL66216 997,894 - Heart and Vascular Diseases Research 93.837 HL98967 634,927 - Heart and Vascular Diseases Research 93.837 HL74871 14,189 - Heart and Vascular Diseases Research 93.837 HL74180 329,619 - Heart and Vascular Diseases Research 93.837 HL105418 327,969 - Heart and Vascular Diseases Research 93.837 HL110262 484,884 - Heart and Vascular Diseases Research 93.837 HL111062 518,520 - Heart and Vascular Diseases Research 93.837 HL111407 319,119 26,739

51

Mayo Clinic




National Institutes of Health (continued):Heart and Vascular Diseases Research (93.837) (continued):

Heart and Vascular Diseases Research 93.837 HL112855 104,793 - Heart and Vascular Diseases Research 93.837 HL114676 640,278 - Heart and Vascular Diseases Research 93.837 HL115144 495,585 - Heart and Vascular Diseases Research 93.837 HL83231 341,745 - Heart and Vascular Diseases Research 93.837 HL92621 53,495 -

Lung Diseases Research (93.838):Lung Diseases Research 93.838 HL108712 1,904,169 1,448,252 Lung Diseases Research 93.838 HL110539 447,803 252,025 Lung Diseases Research 93.838 HL74309 24,412 - Lung Diseases Research 93.838 HL65228 417,324 - Lung Diseases Research 93.838 AI69544 112,063 70,115 Lung Diseases Research 93.838 HL117823 531,929 - Lung Diseases Research 93.838 HL123075 25,651 - Lung Diseases Research 93.838 HL124959 936 - Lung Diseases Research 93.838 HL125205 3,413 - Lung Diseases Research 93.838 HL88029 320,958 - Lung Diseases Research 93.838 HL62150 647,653 - Lung Diseases Research 93.838 HL112849 134,052 - Lung Diseases Research 93.838 HL90595 90,733 - Lung Diseases Research 93.838 HL105355 253,984 - Lung Diseases Research 93.838 HL56470 490,977 95,381

Blood Diseases and Resources Research (93.839):Blood Diseases and Resources Research 93.839 HL90639 370 - Blood Diseases and Resources Research 93.839 HL112677 121,829 - Blood Diseases and Resources Research 93.839 HL109109 425,179 17,919 Blood Diseases and Resources Research 93.839 HL114343 372,106 - Blood Diseases and Resources Research 93.839 HL121232 10,653 - Blood Diseases and Resources Research 93.839 HL96108 37,310 -

Arthritis, Musculoskeletal and Skin Diseases Research (93.846):Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR57745 261,051 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR27065 606,968 21,376 Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR44391 184,729 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR46849 713,078 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR30752 217,986 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR60861 335,714 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR64151 38,330 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR64679 48,538 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR56212 163,177 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR56647 128,722 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR56950 306,852 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR59138 111,157 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR50243 39,658 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR62613 74,649 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR65397 38,819 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR65550 38,502 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR65753 13,029 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR66342 12,892 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR68103 34,505 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR57781 203,047 144,668 Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR57815 160,791 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR49277 229,434 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR49069 496,153 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR53917 815 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR61567 706,509 299,838 Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR63596 31,156 -

52

Mayo Clinic




National Institutes of Health (continued):Diabetes, Endocrinology and Metabolism Research (93.847):

Diabetes, Digestive, and Kidney Diseases ExtramuralResearch 93.847 DK69370 243,634 -

Diabetes, Digestive, and Kidney Diseases ExtramuralResearch 93.847 DK79856 549,645 378,817

























Diabetes, Digestive, and Kidney Diseases ExtramuralResearch 93.847 DK83908 1,266,399 390,821

53

Mayo Clinic




National Institutes of Health (continued):Diabetes, Endocrinology and Metabolism Research (93.847)

(continued):Diabetes, Digestive, and Kidney Diseases Extramural

Research 93.847 DK84009 368,541 - Diabetes, Digestive, and Kidney Diseases Extramural


Research 93.847 DK100227 1,185,717 80,926 Diabetes, Digestive, and Kidney Diseases Extramural







Research 93.847 DK41973 642,190 78,748 Diabetes, Digestive, and Kidney Diseases Extramural



Research 93.847 DK84567 1,258,092 15,295 Diabetes, Digestive, and Kidney Diseases Extramural


Research 93.847 DK90728 1,377,332 - Diabetes, Digestive, and Kidney Diseases Extramural












Research 93.847 DK47060 128,343 -

54

Mayo Clinic




National Institutes of Health (continued):Diabetes, Endocrinology and Metabolism Research (93.847)

(continued):Diabetes, Digestive, and Kidney Diseases Extramural










Research 93.847 DK97178 166,426 - Digestive Diseases and Nutrition Research (93.848):

Digestive Diseases and Nutrition Research 93.848 DK24031 234,677 - Digestive Diseases and Nutrition Research 93.848 DK44650 295,198 - Digestive Diseases and Nutrition Research 93.848 DK40484 355,790 - Digestive Diseases and Nutrition Research 93.848 DK17238 25,243 - Digestive Diseases and Nutrition Research 93.848 DK80670 315,004 66,594 Digestive Diseases and Nutrition Research 93.848 DK58185 369,901 - Digestive Diseases and Nutrition Research 93.848 DK59427 375,091 - Digestive Diseases and Nutrition Research 93.848 DK52766 372,655 - Digestive Diseases and Nutrition Research 93.848 DK59615 265,857 - Digestive Diseases and Nutrition Research 93.848 DK63947 393,350 - Digestive Diseases and Nutrition Research 93.848 DK68055 1,266,601 - Digestive Diseases and Nutrition Research 93.848 DK67071 212,396 -

Kidney Diseases, Urology and Hematology Research (93.849):Kidney Diseases, Urology and Hematology Research 93.849 DK73608 432,562 - Kidney Diseases, Urology and Hematology Research 93.849 DK77950 24,456 12,925 Kidney Diseases, Urology and Hematology Research 93.849 DK70124 320,288 - Kidney Diseases, Urology and Hematology Research 93.849 DK56957 328,894 85,949 Kidney Diseases, Urology and Hematology Research 93.849 DK59597 292,291 -

Extramural Research Programs in the Neurosciences andNeurological Disorders (93.853):Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS70872 270,233 30,553 Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS73557 41,740 - Extramural Research Programs in the Neurosciences and




Neurological Disorders 93.853 NS77555 249,256 -

55

Mayo Clinic




National Institutes of Health (continued):Extramural Research Programs in the Neurosciences and

Neurological Disorders (93.853) (continued):Extramural Research Programs in the Neurosciences and























Neurological Disorders 93.853 NS72187 1,500,369 - Extramural Research Programs in the Neurosciences and





56

Mayo Clinic




National Institutes of Health (continued):Extramural Research Programs in the Neurosciences and

Neurological Disorders (93.853) (continued):Extramural Research Programs in the Neurosciences and
















Neurological Disorders 93.853 NS80882 334,785 - Allergy, Immunology and Transplantation Research (93.855):

Allergy, Immunology and Transplantation Research 93.855 AI89859 6,646,386 4,968,859 Allergy, Immunology and Transplantation Research 93.855 AI08971 400,604 - Allergy, Immunology and Transplantation Research 93.855 AI91594 391,229 22,880 Allergy, Immunology and Transplantation Research 93.855 AI96326 534,387 51,910 Allergy, Immunology and Transplantation Research 93.855 AI71106 467,219 81,222 Allergy, Immunology and Transplantation Research 93.855 AI81739 8,486 - Allergy, Immunology and Transplantation Research 93.855 AI68741 367,752 - Allergy, Immunology and Transplantation Research 93.855 AI48793 500,262 - Allergy, Immunology and Transplantation Research 93.855 AI33144 528,285 - Allergy, Immunology and Transplantation Research 93.855 AI63476 337,377 - Allergy, Immunology and Transplantation Research 93.855 AI89714 293,727 - Allergy, Immunology and Transplantation Research 93.855 AI77344 30,220 - Allergy, Immunology and Transplantation Research 93.855 AI34486 51,005 - Allergy, Immunology and Transplantation Research 93.855 AI100911 524,977 - Allergy, Immunology and Transplantation Research 93.855 AI102959 330,775 7,234 Allergy, Immunology and Transplantation Research 93.855 AI104065 186,923 - Allergy, Immunology and Transplantation Research 93.855 AI105233 215,107 - Allergy, Immunology and Transplantation Research 93.855 AI83790 64,625 - Allergy, Immunology and Transplantation Research 93.855 AI97337 250,014 - Allergy, Immunology and Transplantation Research 93.855 AI110173 356,467 - Allergy, Immunology and Transplantation Research 93.855 AI112538 77,479 -

57

Mayo Clinic




National Institutes of Health (continued):Allergy, Immunology and Transplantation Research (93.855)

(continued):Allergy, Immunology and Transplantation Research 93.855 AI95239 66,233 - Allergy, Immunology and Transplantation Research 93.855 AI07425 192,456 - Allergy, Immunology and Transplantation Research 93.855 AI65474 199,682 - Allergy, Immunology and Transplantation Research 93.855 AI83279 426,385 - Allergy, Immunology and Transplantation Research 93.855 AI75262 80,500 - Allergy, Immunology and Transplantation Research 93.855 AI89846 237,643 - Allergy, Immunology and Transplantation Research 93.855 AI66310 902,545 - Allergy, Immunology and Transplantation Research 93.855 AI07047 131,441 - Allergy, Immunology and Transplantation Research 93.855 AI100797 224,932 - Allergy, Immunology and Transplantation Research 93.855 AI101172 117,729 4,990 Allergy, Immunology and Transplantation Research 93.855 AI101277 152,568 - Allergy, Immunology and Transplantation Research 93.855 AI96967 297,328 34,035 Allergy, Immunology and Transplantation Research 93.855 AI97187 478,838 - Allergy, Immunology and Transplantation Research 93.855 AI97241 302,471 32,565

Biomedical Research and Research Training (93.859):Biomedical Research and Research Training 93.859 GM86435 169,372 - Biomedical Research and Research Training 93.859 GM59763 298,117 - Biomedical Research and Research Training 93.859 GM75965 511,136 136,999 Biomedical Research and Research Training 93.859 GM72719 256,213 - Biomedical Research and Research Training 93.859 GM81838 307,900 - Biomedical Research and Research Training 93.859 GM28157 426,411 150,785 Biomedical Research and Research Training 93.859 GM102282 639,175 393,416 Biomedical Research and Research Training 93.859 GM103841 308,275 32,822 Biomedical Research and Research Training 93.859 GM105688 769,553 371,947 Biomedical Research and Research Training 93.859 GM106693 34,085 - Biomedical Research and Research Training 93.859 GM71514 214,484 - Biomedical Research and Research Training 93.859 GM73024 143,336 - Biomedical Research and Research Training 93.859 GM65841 236,428 - Biomedical Research and Research Training 93.859 GM93133 169,287 - Biomedical Research and Research Training 93.859 GM61388 2,764,384 791,557 Biomedical Research and Research Training 93.859 GM75148 287,671 - Biomedical Research and Research Training 93.859 GM72474 142,841 - Biomedical Research and Research Training 93.859 GM65450 346,616 - Biomedical Research and Research Training 93.859 GM63904 575,030 229,407 Biomedical Research and Research Training 93.859 GM55816 284,259 - Biomedical Research and Research Training 93.859 GM54200 257,332 - Biomedical Research and Research Training 93.859 GM08685 276,551 - Biomedical Research and Research Training 93.859 GM55252 340,027 - Biomedical Research and Research Training 93.859 GM99722 523,134 -

Child Health and Human Development Extramural Research(93.865):Child Health and Human Development Extramural Research 93.865 HD42569 823,012 - Child Health and Human Development Extramural Research 93.865 HD60503 523,132 107,519 Child Health and Human Development Extramural Research 93.865 HD65987 401,575 - Child Health and Human Development Extramural Research 93.865 HD07447 105,072 - Child Health and Human Development Extramural Research 93.865 HD31476 581,298 282,445 Child Health and Human Development Extramural Research 93.865 HD71907 437,990 -

Aging Research (93.866):Aging Research 93.866 AG32991 367,246 - Aging Research 93.866 AG37526 589,675 492,810 Aging Research 93.866 AG37573 225,095 - Aging Research 93.866 AG45390 41,212 - Aging Research 93.866 AG40042 379,655 - Aging Research 93.866 AG19695 420,469 -

58

Mayo Clinic




National Institutes of Health (continued):Aging Research (93.866) (continued):

Aging Research 93.866 AG29362 630,511 - Aging Research 93.866 AG31763 322,813 - Aging Research 93.866 AG06786 1,756,337 - Aging Research 93.866 AG27924 270,340 - Aging Research 93.866 AG35355 297,629 - Aging Research 93.866 AG44075 37,298 - Aging Research 93.866 AG44396 238,009 - Aging Research 93.866 AG44615 447,883 - Aging Research 93.866 AG45228 219,415 - Aging Research 93.866 AG46061 36,967 - Aging Research 93.866 AG46205 374,955 - Aging Research 93.866 AG28141 275,706 - Aging Research 93.866 AG13925 74,521 - Aging Research 93.866 AG26251 237,810 - Aging Research 93.866 AG16574 1,798,165 40,000 Aging Research 93.866 AG09531 866,391 - Aging Research 93.866 AG20686 280,271 - Aging Research 93.866 AG15709 224,967 - Aging Research 93.866 AG04875 719,322 - Aging Research 93.866 AG18023 202,882 - Aging Research 93.866 AG11378 530,317 - Aging Research 93.866 AG34676 840,312 27,565 Aging Research 93.866 AG31750 326,063 - Aging Research 93.866 AG26094 418,485 - Aging Research 93.866 AG37491 298,871 - Aging Research 93.866 AG32679 14,180 - Aging Research 93.866 AG41122 1,844,502 729,730 Aging Research 93.866 AG41676 672,208 - Aging Research 93.866 AG41851 845,087 - Aging Research 93.866 AG44170 1,079,577 -

Vision Research (93.867):Vision Research 93.867 EY13160 378,929 - Vision Research 93.867 EY13847 309,015 - Vision Research 93.867 EY21153 325,174 - Vision Research 93.867 EY24333 173,094 102,772 Vision Research 93.867 EY18810 542,985 - Vision Research 93.867 EY21727 338,526 -

Medical Library Assistance (93.879):Medical Library Assistance 93.879 LM11575 87,519 - Medical Library Assistance 93.879 LM11934 11,217 -

International Research and Research Training (93.989):Contract 93.RDC CM01018 259,691 149,487 Contract 93.RDC CM17104 1,029 - Contract 93.RDC CM52206 48,444 - Contract 93.RDC CN35000 633,735 232,351 Contract 93.RDC 200-2013-M-56544 11,861 - Contract 93.RDC HHS-N-261-2012-00042 1,042,578 215,494 Contract 93.RDC HHS-N-261-2012-00398 130,339 - Contract 93.RDC HHS-N-261-2013-00038 41,651 - Contract 93.RDC HHS-N-272-2010-00025 569,668 - Contract 93.RDC HHS-N-268-2005-36176 4,387 - Contract 93.RDC HHS-N-268-2011-00022 325,938 - Contract 93.RDC HHS-N-272-2010-00005 354,375 36,635 Contract 93.RDC HHS-N-261-2011-00099C 71,384 - Contract 93.RDC HR46161 272,738 -

59

Mayo Clinic




National Institutes of Health (continued):ARRA—Strategic Health IT Advanced Research Projects

(SHARP) (93.728):SHARP 93.728 90TR0002Z 174,898 208,688 Subtotal direct awards 231,791,970 34,313,241


Accenture Federal Services, LLC:Contract 93.RDC HHS-P-233-2009-5638WC 29,181 -

Advanced Medical Electronics Corporation:Mental Health Research Grants 93.242 MH103301 8,559 - Child Health and Human Development Extramural Research 93.865 HD70828 1,415 -

Albert Einstein College of Medicine of Yeshiva University:Cardiovascular Diseases Research 93.837 HL125119 2,844 - Aging Research 93.866 AG03949 263,095 30,523

Allina Health System:Cardiovascular Diseases Research 93.837 HL87394 15,866 -

American College of Cardiology:Research on Healthcare Costs, Quality and Outcomes 93.226 HS21969 36,500 -

American College of Radiology:Cancer Treatment Research 93.395 CA180820 1,886 -

American College of Radiology Imaging Network:Cancer Detection and Diagnosis Research 93.394 CA80098 40,919 -

Artann Laboratories:Digestive Diseases and Nutrition Research 93.848 DK68936 27,000 -

Arizona State University:Cancer Biology Research 93.396 CA174412 934 - Cancer Centers Support Grants 93.397 CA143862 22,205 - Diabetes, Digestive, and Kidney Diseases Extramural





Research 93.847 DK94062 165,478 - Aging Research 93.866 AG43760 11,945 - Contract 93.RDC HHS-O-100-2010-00008C 21,259 -

Association of Public Health Laboratories, Inc.:Laboratory Leadership, Workforce Training and Management

Development, Improving Public Health Laboratory Infrastructure 93.065 HM00803 675 - Atlantic Health Hospital Corporation:

Extramural Research Programs in the Neurosciences andNeurological Disorders 93.853 NS073512 65,219 -

Banner Health:Aging Research 93.866 AG31581 34,278 -

Benaroya Research Institute:Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK99718 6,862 -

Boitex, Inc.:Cancer Treatment Research 93.395 CA150310 110 -

Boston University Medical Campus:Environmental Health 93.113 ES20395 243,723 -

Brigham and Women’s Hospital:Human Genome Research 93.172 HG06834 162,007 - Cancer Treatment Research 93.395 CA180821 34,579 -

60

Mayo Clinic



Department of Health and Human Services (continued):Pass-through awards (continued):

Brigham and Women’s Hospital (continued):Lung Diseases Research 93.838 HL114839 80,779 - Cancer Treatment Research 93.395 CA37447 585,550 40,000 Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR55557 22,769 -

Butler Hospital:Mental Health Research Grants 93.242 MH76179 23,758 -

Case Western Reserve University:Cancer Treatment Research 93.395 CA150959 297,668 - Cancer Control 93.399 CA163060 19,147 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK101074 418 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK94157 124,214 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS38667 32,867 - Children’s Hospital Boston:

Medical Library Assistance 93.879 LM10090 59,665 - Children’s Hospital of Philadelphia:

Cancer Treatment Research 93.395 CA98543 14,682 - Cancer Biology Research 93.396 CA168452 2,138 -

Children’s Hospital Med Center (Cincinnati):Heart and Vascular Diseases Research 93.837 HL105333 59,534 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS76788 4,386 - City of Hope National Medical Center:

Cancer Cause and Prevention Research 93.393 CA140245 25,494 - Cleveland Clinic Foundation:

Contract 93.RDC HHS-N-268-2007-0018 7,252 - Columbia University:

Environmental Health 93.113 ES16348 9,164 - Cancer Centers Support Grants 93.397 CA163004 205,939 - Child Health and Human Development Extramural Research 93.865 HD67287 14,892 - Aging Research 93.866 AG41797 45,103 -

Dana-Farber Cancer Institute:Cancer Centers Support Grants 93.397 CA100707 796 -

Dartmouth College:Health Care Innovation Awards (HCIA) 93.610 CMS331029 382,371 -

Duke University:Cancer Treatment Research 93.395 CA076001 823,289 - Heart and Vascular Diseases Research 93.837 HL84904 376,006 - Heart and Vascular Diseases Research 93.837 HL105853 1,096 - Heart and Vascular Diseases Research 93.837 HL105448 32,958 - Heart and Vascular Diseases Research 93.837 HL84904 24,004 - Digestive Diseases and Nutrition Research 93.848 DK65176 5,502 - Allergy, Immunology and Transplantation Research 93.855 AI104681 94,786 - Allergy, Immunology and Transplantation Research 93.855 AI98620 20 - Allergy, Immunology and Transplantation Research 93.855 AI56363 13,028 - Contract 93.RDC HHS-N-275-2010-00003I 700 -

Dystonia Medical Research Foundation:Neurological Disorders 93.853 NS65701 17,552 -

ECOG-ACRIN Medical Research Foundation:Cancer Treatment Research 93.395 CA180820 4,990 -

EMMES Corporation:ARRA—Trans-NIH Recovery Act Research Support 93.701 NS62835Z 2,444 -

Emory University:Nursing Research 93.361 NR12419 126,468 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK56956 3,059 -

Florida State University:Aging Research 93.866 AG45703 31,382 -

61

Mayo Clinic




Fond Du Lac Reservation:Demonstration Projects for Indian Health 93.933 IHS300411 125,370 -

Fox Chase Cancer Center:Cancer Cause and Prevention Research 93.393 CA155347 135,719 -

Fred Hutchinson Cancer Research Center:Cancer Cause and Prevention Research 93.393 CA170122 15,387 - Cancer Cause and Prevention Research 93.393 CA176272 68,666 - Cancer Cause and Prevention Research 93.393 CA182940 124,263 - Allergy, Immunology and Transplantation Research 93.855 CA163438 16,309 -

Frontier Science and Technology Research Foundation:Cancer Detection and Diagnosis Research 93.394 CA114737 60,517 - Cancer Treatment Research 93.395 CA21115 400,996 -

Gamma Medica-Ideas, Inc.:Cancer Detection and Diagnosis Research 93.394 CA143716 48,565 -

General Electric Global Research Center:Discovery and Applied Research for Technological

Innovations to Improve Human Health 93.286 EB10065 301,779 - Georgia Regents University:

Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK76169 100,000 5,000 Great Lakes Hemophilia Foundation:

Maternal and Child Health Federal Consolidated Programs 93.110 MC00032 9,122 - Disabilities Prevention 93.184 DD00862 23,056 -

Gynecologic Oncology Group:Cancer Treatment Research 93.395 CA27469 27,380 5,150 Cancer Treatment Research 93.395 CA162139 10,480 -

H. Lee Moffit Cancer Center and Research Institute, Inc.:Cancer Cause and Prevention Research 93.393 CA148112 110,687 - Cancer Cause and Prevention Research 93.393 CA149429 43,000 -

Harvard College:Cancer Cause and Prevention Research 93.393 CA92824 50,618 - Lung Diseases Research 93.838 HL02373 84,361 -

ICF Macro, Inc.:Contract 93.RDC HHS-N-261-2012-0010I 70,474 -

Imanis Life Sciences:National Center for Advancing Translational Sciences 93.350 TR01191 851 -

Innovative Design Labs, Inc.:National Center for Advancing Translational Sciences 93.350 TR000574 2,408 -

Institute for Clinical Research:Allergy, Immunology and Transplantation Research 93.855 AI68641 96,143 -

Institute for Clinical Systems Improvement:Health Care Innovation Awards 93.610 1C1CMS331048 656,171 -

International Diabetes Center:Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK98246 142,007 -

Intermountain Health Care:Contract 93.RDC IHC #1 47,620 -

Jaeb Center for Health Research:Vision Research 93.867 EY11751 54,043 - Vision Research 93.867 EY14231 6,508 - Vision Research 93.867 EY20797 13,458 -

Johns Hopkins University:Food and Drug Administration Research 93.103 FD04859 32,340 - Mental Health Research Grants 93.242 MH75673 27,097 - Cancer Cause and Prevention Research 93.393 CA89600 1,537,405 706,083 Cancer Cause and Prevention Research 93.393 CA154823 63,045 - Cardiovascular Diseases Research 93.837 HL111938 44,980 - Extramural Research Programs in the Neurosciences and


62

Mayo Clinic




Johns Hopkins University (continued):Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK74008 236,576 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS62851 1,005 - Kaiser Foundation:

Cancer Cause and Prevention Research 93.393 CA171524 26,635 - Leidos Biomedical Research:

Contract 93.RDC HHS-N-261-2008-00001E 24,145 - Leland Stanford Junior University:

Human Genome Research 93.172 HG04028 43,913 - Macrosys LLC:

Contract 93.RDC MACROSYS MC01 2,258 - Massachusetts Eye & Ear Infirmary:

Vision Research 93.867 EY20928 88,827 - Vision Research 93.867 EY22305 51,594 -

Massachusetts General Hospital:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS52592 5,237 - McKing Consulting Corporation:

Contract 93.RDC 200-2011-40830 4,231 - Medical College of Wisconsin:

Cancer Detection and Diagnosis Research 93.394 CA82500 26,366 - Blood Diseases and Resources Research 93.839 HL69294 2,568 -

Minneapolis Medical Research Foundation:Aging Research 93.866 AG37551 102,322 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK66013 53,514 -

Minnesota Department of Health:National Bioterrorism Hospital Preparedness Program 93.889 MDH10327 447,605 -

Minnesota HealthSolutions Corporation:Lung Diseases Research 93.838 HL114162 30,378 -

Minnesota Veterans Research Institute:Lung Diseases Research 93.838 HL74416 32,801 -

Mount Sinai Medical Center of Florida:Heart and Vascular Diseases Research 93.837 HL102084 31,862 -

Mount Sinai School of Medicine at NYU:Cancer Treatment Research 93.395 CA108671 54,022 -

National Childhood Cancer Foundation:Cancer Treatment Research 93.395 CA97452 45,788 -

National Jewish Health:Allergy, Immunology and Transplantation Research 93.855 AI97073 3,359 -

National Marrow Donor Program:Blood Diseases and Resources Research 93.839 HL85707 11,276 - Blood Diseases and Resources Research 93.839 BMTCTN 35,100 -

Neurosigma, Inc:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS74576 74,738 - New England Research Institute:

Cardiovascular Diseases Research 93.837 HL105463 7,277 - Contract 93.RDC HC45207 2,748 -

New York School of Medicine:Cardiovascular Diseases Research 98.837 HL105907 44,602 -

NORC:Contract 93.RDC HHS-N-275-2012-00004 98,519 -

Northern California Institute Research and Education:Aging Research 93.866 AG24904 1,281,210 -

63

Mayo Clinic




Northwestern University:Research Related to Deafness and Communication Disorders 93.173 DC13115 95,301 - Blood Diseases and Resources Research 93.839 HL112792 140,828 - Allergy, Immunology and Transplantation Research 93.855 AI84146 300,099 -

NYU Langone Medical Center:ARRA—Recovery Act—Comparative Effectiveness Research—

AHRQ 93.715 HS19218Z 49,886 - Ohio State University:

Cancer Detection and Diagnosis Research 93.394 CA170096 14,399 - Lung Diseases Research 93.838 HL116826 44,363 -

Olmsted Medical Center:Research on Healthcare Costs, Quality and Outcomes 93.226 HS18431 6,446 -

Oregon Research Institute:Cancer Cause and Prevention Research 93.393 CA142952 15,056 -

Pennsylvania State University:Drug Abuse and Addiction Research Programs 93.279 DA36385 24,530 -

Radiation Monitoring Devices:Cardiovascular Diseases Research 93.837 HL106851 32,158 -

Radikal Therapeutics:Lung Diseases Research 93.838 HL118787 33,787 - Vision Research 93.867 EY24806 5,663 -

Radiological Society of North America:Contract 93.RDC HHS-N-268-2012-00078 185,025 - Contract 93.RDC HHS-N-268-2013-00071C 3,095 -

The Research Foundation of SUNY:Cancer Cause and Prevention Research 93.393 CA136754 123,880 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR66101 19,059 - Biomedical Research and Research Training 93.859 GM85092 6,593 - Aging Research 93.866 AG48388 7,464 -

Roswell Park Cancer Institute:Cancer Treatment Research 93.395 CA158318 159,008 -

Rush University:Alcohol Research Programs 93.273 AA23417 47,714 -

SAIC-Frederick:Contract 93.RDC 12XS301 4,821 - Contract 93.RDC 12XS396 50 - Contract 93.RDC 12YS549 1,120 - Contract 93.RDC 12XS460Z 102,281 9,505 Contract 93.RDC 13XS132 2,829 - Contract 93.RDC 13XS488 42,091 - Contract 93.RDC 13XS500 482,261 - Contract 93.RDC HHS-N-261-2008-00001 2,119 -

Sloan-Kettering:Cancer Detection and Diagnosis Research 93.394 CA160816 91,029 - Contract 93.RDC HHS-N-261-2010-00063 90,402 -

Social & Scientific Systems, Inc.:Contract 93.RDC ES55503 2,070 - Contract 93.RDC HHS-N-272-2009-00001 20,376 -

St. Joseph’s Hospital:Family Smoking Prevention and Tobacco Control Act

Regulatory Research 93.077 DA36059 52,192 - Stanford University:

Cancer Cause and Prevention Research 93.393 CA167551 387,978 - Medical Library Assistance 93.879 LM11369 79,937 -

Southern Illinois University:Aging Research 93.866 AG19899 46,774 - Aging Research 93.866 AG31736 18,990 -

64

Mayo Clinic




Sun Health Research Institute:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS72026 399,810 - Aging Research 93.866 AG19610 126,169 -

Texas Tech University:Aging Research 93.866 AG39389 16,645 -

Tufts Medical Center:Contract 93.RDC CP55508 77,052 -

University Health Network:Cancer Cause and Prevention Research 93.393 CA135101 96,674 -

University of Alabama:Cancer Cause and Prevention Research 93.393 CA154643 73,746 - Cancer Cause and Prevention Research 93.393 CA186646 2,964 - Aging Research 93.866 AG21927 40,317 -

University of Arizona:Family Smoking Prevention and Tobacco Control Act Regulatory

Research 93.077 DA37378 21,408 - Cancer Biology Research 93.396 CA149258 59,436 - Cancer Centers Support Grants 93.397 CA95060 1,410 - Contract 93.RDC CN35158 8,021 -

University of California—Los Angeles:Research Related to Deafness and Communication Disorders 93.173 DC13256 70,257 -

University of California—San Diego:Cancer Treatment Research 93.395 CA81534 183,674 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS44233 1,121,040 566,304 Aging Research 93.866 AG10483 783,918 - Aging Research 93.866 AG41845 22,700 -

University of California—San Francisco:Mental Health Research Grants 93.242 MH98062 18,445 - National Center for Advancing Translational Sciences 93.350 TR000143 27,177 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR60700 96,271 - Extramural Research Programs in the Neurosciences and



Neurological Disorders 93.853 NS65705 10,137 - Aging Research 93.866 AG32306 123,501 -

University of California—Santa Barbara:Diabetes, Endocrinology and Metabolism Research 93.847 DK94331 281,172 35,000

University of Cincinnati:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS86872 94,769 - University of Colorado:

Food and Drug Administration Research 93.103 FD004086 10,169 - Cancer Detection and Diagnosis Research 93.394 CA157715 23,038 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS63964 31,834 - University of Florida:

Biomedical Research and Research Training 93.859 GM74492 131,967 - Aging Research 93.866 AG46139 1,147,227 -

University of Illinois at Chicago:Aging Research 93.866 AG30128 190,641 -

University of Illinois at Urbana Champaign:Cancer Cause and Prevention Research 93.393 CA170857 67,432 - Cardiovascular Diseases Research 93.837 HL109192 28,622 -

65

Mayo Clinic




University of Iowa:Cancer Centers Support Grants 93.397 CA97274 1,529,183 - Contract 93.RDC PC35143 79,042 - Contract 93.RDC HHS-N-261-2010-00032 47,031 -

University of Kansas Medical Center:Diabetes, Endocrinology and Metabolism Research 93.847 DK56943 4,020 -

University of Maryland—Baltimore:Cardiovascular Diseases Research 93.837 HL105198 3,910 -

University of Maryland Biotechnology Institute:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS69208 81,895 - University of Massachusetts:

Extramural Research Programs in the Neurosciences andNeurological Disorders 93.853 NS088689 9,455 -

University of Medicine and Dentistry of New Jersey:Extramural Research Programs in the Neurosciences and

Neurological Disorders (93.853):Carotid Revascularization Endarterectomy vs. Stenting 93.853 NS38384 199,793 -

University of Michigan:Blood Diseases and Resources Research 93.839 BMTCNT 53,779 - Lung Diseases Research 93.838 HL105489 20,412 - Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR62066 7,924 - Diabetes, Endocrinology and Metabolism Research 93.847 DK20572 58,774 - Diabetes, Endocrinology and Metabolism Research 93.847 DK83912 178,706 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS79077 909 - Vision Research 93.867 EY22124 133,014 -

University of Minnesota:Drug Abuse and Addiction Research Programs 93.279 DA31659 301,718 - Cancer Cause and Prevention Research 93.393 CA141527 35,494 - Cancer Cause and Prevention Research 93.393 CA142714 51,408 - Cancer Cause and Prevention Research 93.393 CA92025 6,115 - Cancer Treatment Research 93.395 CA174861 6,417 - Cardiovascular Diseases Research 93.837 HL95603 86,410 - Lung Diseases Research 93.838 HL107612 333,802 - Diabetes, Endocrinology and Metabolism Research 93.847 DK98203 14,118 - Diabetes, Endocrinology and Metabolism Research 93.847 DK90364 16,137 - Diabetes, Endocrinology and Metabolism Research 93.847 DK50456 206,431 - Extramural Research Programs in the Neurosciences and




Neurological Disorders 93.853 NS77921 234,401 - Allergy, Immunology and Transplantation Research 93.855 AI58134 62,537 - Allergy, Immunology and Transplantation Research 93.855 AI70119 126,820 - Biomedical Research and Research Training 93.859 GM92993 125,316 - Child Health and Human Development Extramural Research 93.865 HD44763 6,040 - Aging Research 93.866 AG43392 66,884 - Contract 93.RDC HHSA 290 2077 10064I 11,503 -

University of Mississippi Medical Center:Heart and Vascular Diseases Research 93.837 HL96917 806,330 - Aging Research 93.866 AG45255 72,457 -

University of Nebraska:Alcohol Research Programs 93.273 AA20735 280,636 -

66

Mayo Clinic




University of Oklahoma Health Sciences Center:Maternal and Child Health Federal Consolidated Programs 93.110 MC21522 6,149 - Heart and Vascular Diseases Research 93.837 HL56267 10,195 -

University of Pennsylvania:Food and Drug Administration Research 93.103 FD003516 103 - Food and Drug Administration Research 93.103 FD003518 84,935 - Heart and Vascular Diseases Research 93.837 HL115041 11,381 - Heart and Vascular Diseases Research 93.837 HL116886 95,270 - Lung Diseases Research 93.838 HL113988 181,965 - Arthritis, Musculoskeletal and Skin Diseases Research (93.846):

Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR57319 111,216 - Arthritis, Musculoskeletal and Skin Diseases Research (93.846):

Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR64153 10,715 - Diabetes, Digestive, and Kidney Diseases Extramural

Research 93.847 DK60990 33,776 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS63930 407,557 - Vision Research 93.867 EY23530 94 -

University of Pittsburgh:Arthritis, Musculoskeletal and Skin Diseases Research 93.846 AR61298 5,044 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK61451 1,216 - Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK93491 1,474 - Contract 93.RDC HHS-N-272-2011-00041 64,735 -

University of Rochester:Cancer Cause and Prevention Research 93.393 CA157823 9,574 -

University of South Alabama:Cancer Detection and Diagnosis Research 93.394 CA164940 17 -

University of Southern California:Cancer Cause and Prevention Research 93.393 CA172404 84,861 - Cancer Cause and Prevention Research 93.393 CA178535 168,117 -

University of Tennessee:Cancer Cause and Prevention Research 93.393 CA141567 82,592 - Cancer Cause and Prevention Research 93.393 DA36510 9,704 - Lung Diseases Research 93.838 HL123978 6,955 -

University of Texas:Cancer Cause and Prevention Research 93.393 CA155388 42,011 -

University of Texas Health Science Center:Cancer Biology Research 93.396 CA141307 6,946 - Heart and Vascular Diseases Research 93.837 HL87318 14,861 - Residency Training in the General Practice of Dentistry 93.897 LM11829 4,054 -

University of Texas M.D. Anderson Cancer Center:Cancer Cause and Prevention Research 93.393 CA149462 16,139 - Cancer Cause and Prevention Research 93.393 CA139020 38,283 - Cancer Centers Support Grants 93.397 CA98258 34,783 -

University of Texas Southwestern Medical Center:Cancer Detection and Diagnosis Research 93.394 CA86402 86,592 -

University of Utah:Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK91437 30,546 - Child Health and Human Development Extramural Research 93.865 HD47349 91,288 -

University of Vermont:Cardiovascular Diseases Research 93.837 HL120877 45,555 -

University of Virginia:Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS69498 57,467 - University of Washington:

Research and Training in Complementary and Alternative Medicine 93.213 AT07766 4,704 - Trans-NIH Research Support 93.310 AR66795 98,549 -

67

Mayo Clinic




University of Washington (continued):Cancer Treatment Research 93.395 CA136632 390,045 - Neurological Disorders 93.853 NS57567 21,895 - Contract 93.RDC HHS-N-272-2010-00024 31,481 -

University of Wisconsin:Research Related to Deafness and Communication Disorders 93.173 DC00496 21,635 - Heart and Vascular Diseases Research 93.837 HL94291 394,477 - Aging Research 93.866 AG16976 27,991 -

Vanderbilt University:Human Genome Research 93.172 HG06385 35,197 - Research on Healthcare Costs, Quality and Outcomes 93.226 HS20415 12,021 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS65736 121,160 - Biomedical Research and Research Training 93.859 GM103859 1,105 -

Wake Forest University Health Sciences:Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK83527 15,226 - Contract 93.RDC HHS-N-268-2009-00048C 548,871 -

Washington University in St. Louis:Blood Diseases and Resources Research 93.839 HL88476 7,130 - Extramural Research Programs in the Neurosciences and

Neurological Disorders 93.853 NS74969 170,648 - Aging Research 93.866 AG32438 198,456 - Aging Research 93.866 AG13956 3,113 - Aging Research 93.866 AG42791 338,282 - Contract 93.RDC HHS-N-261-2010-00061C 48,140 -

Westat:Contract 93.RDC HHS-N-261-2011-00102 4,214 -

XYKEN, LLC:Diabetes, Digestive, and Kidney Diseases Extramural Research 93.847 DK91964 7,913 -

Yale University:Mental Health Research Grants 93.242 MH103365 18,455 - Cardiovascular Diseases Research 93.837 HL105270 4,157 - Cardiovascular Diseases Research 93.837 HL115295 27,301 - Child Health and Human Development Extramural Research 93.865 HD76603 136,890 -

Subtotal pass-through awards 30,565,079 1,397,565 Total Department of Health and Human Services 262,357,049 35,710,806

National Aeronautics and Space Administration:Direct awards:

NASA Shared Services Center:NASA Grant 43.NNX08AQ20 NNX08AQ20G 51,304 -

Total National Aeronautics and Space Administration 51,304 -

National Science Foundation:Direct awards:

Engineering Grants (47.041):Engineering Grants 47.041 IIP-1439611 2,729 -

Computer and Information Science and Engineering (47.070):Computer and Information Science and Engineering 47.070 CCF1318347-01 81,383 - Computer and Information Science and Engineering 47.070 NSF4-#1 24,308 - Computer and Information Science and Engineering 47.070 NSF4-#2 43,749 - Computer and Information Science and Engineering 47.070 NSF4-#3 49,238 -

Subtotal direct awards 201,407 -

68

Mayo Clinic



National Science Foundation (continued):Pass-through awards:

Georgetown University:ARRA—Trans-NSF Recovery Act Research Support 47.082 DBI-0845523 268,318 -

Michigan Technological University:Engineering Grants 47.041 CBET-1350154 21,430 -

North Carolina State University:Engineering Grants 47.041 CMMI-0969885 13,095 -

University of California, Davis:Engineering Grants 47.041 CBET-1233617 20,560 -

Subtotal pass-through awards 323,403 - Total National Science Foundation 524,810 -

Office of Personnel Management:Direct awards:

Intergovernmental Personnel Act (IPA) Mobility Program 27.011 IPA #1 5,901 - Intergovernmental Personnel Act (IPA) Mobility Program 27.011 IPA #2 16,164 -

Total Office of Personnel Management 22,065 -

Total Research and Development Cluster 276,280,188 36,590,296

Student Financial Assistance Cluster:Department of Education:

Direct awards:

Office of Student Financial Assistance Programs:Federal Pell Grant Program (84.063):

Pell Grant Program 84.063 110,068 - Federal Direct Student Loans (84.268):

Federal Direct Student Loans 84.268 8,378,833 - Total Student Financial Assistance Cluster 8,488,901 -

Other programs:Department of Defense:

Direct awards:

Contract (12.RDC):Interpersonnel Agreement 12.RDC USAMRMC IPA 23,757 -

Total Department of Defense 23,757 -

Department of Health and Human Services:Direct awards:

Health Resources and Services Administration:National Health Service Corps Scholarship Program 93.288 21,760 -

Office of the Surgeon General:Military Health Professions Scholarships 93.Unknown 65,090 -

Subtotal direct awards 86,850 -


Administration for Children and Families:Centers for Medicare & Medicaid Services:

Medical Assistance Program (93.778):Georgia Board for Physician Workforce 93.778 349,565 -

Subtotal Medical Assistance Program (CFDA 93.778) 349,565 -

Office of Family Assistance:Temporary Assistance for Needy Families (93.558):

Adams County Health and Human Services 93.558Buffalo County Department of Health and Human Services 93.558 1,652 - Care Wisconsin 93.558 502 - Children’s Advocacy Centers of Georgia, Inc. 93.558 18,313 -

69

Mayo Clinic


CFDA Federal/Pass-Through Pass-ThroughSponsor/CFDA Description/Project Description Number Award Number Expenditures to SubrecipientsOther programs (continued):


Administration for Children and Families (continued):Office of Family Assistance (continued):

Temporary Assistance for Needy Families (93.558) (continued):Crawford County Department of Human Services 93.558 1,702 - Grant Unified Community Services 93.558 1,114 - Jackson County Department of Human Services 93.558 278 - Juneau County Department of Human Services 93.558 97 - La Crosse County Department of Human Services 93.558 32,602 - Lafayette County Department of Human Services 93.558 2,193 - Monroe County Department of Human Services 93.558 9,237 - Polk County Human Services Department 93.558 2,460 - Richland County Health and Human Services 93.558 1,796 - Sauk County Department of Human Services 93.558 755 - Trempealeau County Unified Board 93.558 4,949 - Vernon County Department of Human Services 93.558 9,559 -

Subtotal Temporary Assistance for Needy Families(CFDA 93.558) 87,209 -

Refugee and Entrant Assistance Voluntary Agency Programs(93.567):Monroe County Department of Human Services 93.567 6,967 -

Subtotal Refugee and Entrant Assistance Voluntary Agency Programs (CFDA 93.567) 6,967 -

Social Services Block Grant (93.667):Buffalo County Department of Health and Human Services 93.667 2,988 - Care Wisconsin 93.667 908 - Crawford County Department of Human Services 93.667 3,079 - Grant Unified Community Services 93.667 2,014 - Jackson County Department of Human Services 93.667 503 - Juneau County Department of Human Services 93.667 175 - La Crosse County Department of Human Services 93.667 58,977 - Lafayette County Department of Human Services 93.667 3,966 - Monroe County Department of Human Services 93.667 16,710 - Polk County Human Services Department 93.667 4,449 - Richland County Health and Human Services 93.667 3,248 - Sauk County Department of Human Services 93.667 1,366 - Trempealeau County Unified Board 93.667 8,952 - Vernon County Department of Human Services 93.667 17,292 -

Subtotal for Social Services Block Grant (93.667) 124,627 -

Block Grants for Community Mental Health Services (93.958):Trempealeau County Unified Board 93.958 128,464 -

Subtotal Block Grants for Community Mental HealthServices (CFDA 93.958) 128,464 -

Block Grants for Prevention and Treatment of SubstanceAbuse (93.959):Buffalo County Department of Health and Human Services 93.959 32,206 - Crawford County Department of Human Services 93.959 115,210 - La Crosse County Department of Human Services 93.959 56,514 - Trempealeau County Unified Board 93.959 5,032 - Vernon County Department of Human Services 93.959 14,835 -

Subtotal Block Grants for Prevention and Treatment of Substance Abuse (CFDA 93.959) 223,797 -

70

Mayo Clinic


CFDA Federal/Pass-Through Pass-ThroughSponsor/CFDA Description/Project Description Number Award Number Expenditures to SubrecipientsOther programs (continued):


Centers for Disease Control and Prevention:Hospital Preparedness Program (HPP) and Public Health

Emergency Preparedness (PHEP) Aligned CooperativeAgreements (93.074):State of Wisconsin 93.074 33,330 - Subtotal Hospital Preparedness Program (HPP) and

Public Health Emergency Preparedness (PHEP)Aligned Cooperative Agreements (93.074) 33,330 -

Preventive Health and Health Services Block Grant (93.991):Georgia Governor’s Office for Children and Families 93.991 19,206 - Subtotal Preventive Health and Health Services

Block Grant (93.991) 19,206 -

Health Resources and Services Administration:State Rural Hospital Flexibility Program (93.241):

Wisconsin Office of Rural Health 93.241 4,698 - Subtotal State Rural Hospital Flexibility

Program (CFDA 93.241) 4,698 -

Small Rural Hospital Improvement Grant Program (93.301):Wisconsin Office of Rural Health 93.301 32,713 - Subtotal Small Rural Hospital Improvement Grant

Program (CFDA 93.301) 32,713 -

National Bioterrorism Hospital Preparedness Program (93.889):Minnesota Department of Health 93.889 315,195 - Subtotal National Bioterrorism Hospital Preparedness

Program (CFDA 93.889) 315,195 -

Subtotal pass-through awards 1,325,771 - Total Department of Health and Human Services 1,412,621 -

Department of Commerce:Pass-through awards:

National Institute for Standards and Technology:Advanced Technology Program (11.612):

IDX Systems Corporation 11.612 217,146 100,000 Subtotal pass-through awards 217,146 100,000 Total Department of Commerce 217,146 100,000

Department of Justice:Pass-through awards:

Georgia Bureau of Investigation:Crime Victim Assistance 16.575 299,210 -

Children’s Advocacy Centers of Georgia, Inc.:Improving the Investigation and Prosecution of Child Abuse

and the Regional and Local Children’s Advocacy Centers 16.758 17,449 - Subtotal pass-through awards 316,659 - Total Department of Justice 316,659 -

Total other programs 1,970,183 100,000 Total federal expenditures 286,739,272 $ 36,690,296 $

See Notes to Schedules of Expenditures of Federal Awards and Florida State Financial Assistance.

71

Mayo Clinic

Schedule of Expenditures of Florida State Financial AssistanceYear Ended December 31, 2014

CSFA Contract/Grant/ Pass-Through

Sponsor/CSFA Description/Project Description Number Subaward Number Expenditures to Subrecipients

Department of Elder Affairs:

Direct projects:

Alzheimer Model Day Care, Memory Disorder Clinics, and

Alzheimer Special Projects 65.002 XZ208 7,084 $ -$


Alzheimer Special Projects 65.002 XZ308 103,703 -


Alzheimer Special Projects 65.002 XZ408 160,533 -

Subtotal direct projects 271,320 -

Pass-through projects:

Mount Sinai Medical Center of Florida, Inc.:

Alzheimer’s Disease Initiative Program 65.002 XZ207/XZ307 19,000 -

Alzheimer’s Disease Initiative Program 65.002 XZ207/XZ407 17,460 -

Subtotal pass-through projects 36,460 -

Total Department of Elder Affairs 307,780 -

Department of Health:

Direct projects:

Bankhead-Coley Cancer Research Program 64.078 2BN01 116,943 -

Bankhead-Coley Cancer Research Program 64.078 3BF01 27,709 -

Bankhead-Coley Cancer Research Program 64.078 4BB08 137,450 -

Bankhead-Coley Cancer Research Program 64.078 4BB13 59,942 -

Subtotal direct projects 342,044 -

Total Department of Health 342,044 -

Total State of Florida 649,824 $ -$

See Notes to Schedules of Expenditures of Federal Awards and Florida State Financial Assistance.

72

Mayo Clinic Notes to Schedules of Expenditures of Federal Awards and Florida State Financial Assistance

73

Note 1. Basis of Presentation

The accompanying schedules of expenditures of federal awards and Florida state financial assistance include the federal and Florida state grant activity of Mayo Clinic and its subsidiaries (the Clinic) under programs of the federal and Florida state governments for the year ended December 31, 2014. The information in these schedules is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.650, Rules of the Auditor General of the State of Florida. Because the schedules present only a selected portion of the operations of the Clinic, they are not intended to, and do not, present the financial position, changes in net assets, or cash flows of the Clinic. The federal schedule excludes the federal programs of Bloomer Lakeview, Inc. and Luther Lakeside Apartments, Inc., both affiliates of the Clinic. Each of these affiliates issued separate audit reports in accordance with OMB Circular A-133.

Note 2. Summary of Significant Accounting Policies

Expenditures reported in the schedules are reported on the cash basis of accounting. Under the cash basis, expenditures are recognized when paid rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts reported on the schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

74

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance With Government Auditing Standards Board of Trustees Mayo Clinic Rochester, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the consolidated financial statements of Mayo Clinic and its subsidiaries (the Clinic), which comprise the consolidated statement of financial position as of December 31, 2014; the related consolidated statements of activities and cash flows for the year then ended; and the related notes to the consolidated financial statements, and have issued our report thereon dated March 2, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the consolidated financial statements, we considered the Clinic’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clinic’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Clinic’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clinic’s consolidated financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

75

Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clinic’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Minneapolis, Minnesota March 2, 2015

76

Independent Auditor’s Report on Compliance for Each Major Federal Program and State Project and on Internal Control Over Compliance

in Accordance With OMB Circular A-133 and Chapter 10.650, Rules of the Auditor General of the State of Florida

Board of Trustees Mayo Clinic Rochester, Minnesota Report on Compliance for Each Major Federal Program and State Project We have audited Mayo Clinic and its subsidiaries’ (the Clinic) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the requirements described in the Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on each of the Clinic’s major federal programs and state projects for the year ended December 31, 2014. Our audit did not include the federal programs of Bloomer Lakeview, Inc. and Luther Lakeside Apartments, Inc., both affiliates of the Clinic. The Clinic’s major federal programs and state projects are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs and state projects. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Clinic’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.650, Rules of the Auditor General of the State of Florida. Those standards, OMB Circular A-133 and Chapter 10.650 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the Clinic’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the Clinic’s compliance. Opinion on Compliance for Each Major Federal Program and State Project In our opinion, the Clinic complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended December 31, 2014.

77

Report on Internal Control Over Compliance Management of the Clinic is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Clinic’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.650, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Clinic’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133 and Chapter 10.650. Accordingly, this report is not suitable for any other purpose.

Minneapolis, Minnesota April 27, 2015

Mayo Clinic Schedule of Findings and Questioned Costs Year Ended December 31, 2014

78

I. SUMMARY OF INDEPENDENT AUDITOR’S RESULTS

A. Financial Statements

1. Type of auditor’s report issued on the financial statements: Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? Yes X No Significant deficiency(ies) identified that are not

considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements

identified? Yes X No

B. Federal Awards and Florida State Financial Assistance

Federal Awards

1. Internal control over major programs:


considered to be material weaknesses? Yes X None reported

2. Type of auditor’s report issued on compliance for major programs: Unmodified

Any audit findings that are required to be reported in accordance with Section 510(a) of Circular A-133? Yes X No

3. Identification of major programs:

4. Dollar threshold used to distinguish between Type A and Type B programs: $3,000,000

5. Auditee qualified as a low-risk auditee under Section 530 of

OMB Circular A-133? X Yes No

(Continued)

CFDA Number Name of Federal Program Multiple Research and Development Cluster

Mayo Clinic Schedule of Findings and Questioned Costs (Continued) Year Ended December 31, 2014

79

Florida State Financial Assistance

1. Internal control over major projects:


considered to be material weaknesses? Yes X None reported

2. Type of auditor’s report issued on compliance for major projects: Unmodified

Any audit findings that are required to be reported in accordance with Chapter 10.650, Rules of the Auditor General of the State of Florida? Yes X No

3. Identification of major state projects:

4. Dollar threshold used to distinguish between Type A and Type B projects: $194,947

II. FINDINGS RELATING TO THE FINANCIAL STATEMENT AUDIT AS REQUIRED TO BE

REPORTED IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS

A. Internal Control Findings

None noted

B. Compliance Findings None noted

III. FINDINGS AND QUESTIONED COSTS RELATING TO FEDERAL AWARDS

A. Internal Control Findings None noted

B. Compliance Findings

None noted

(Continued)

State CFSA Number Name of State Project 64.078 65.002

Bankhead-Coley Cancer Research Program Alzheimer Model Day Care, Memory Disorder Clinics, and

Alzheimer Special Projects

Mayo Clinic Schedule of Findings and Questioned Costs (Continued) Year Ended December 31, 2014

80

IV. FINDINGS AND QUESTIONED COSTS RELATING TO FLORIDA STATE FINANCIAL ASSISTANCE

A. Internal Control Findings None noted

B. Compliance Findings None noted

V. MANAGEMENT LETTER

No items that relate to federal awards or Florida state financial assistance projects.

Mayo Clinic Summary Schedule of Prior Audit Findings Year Ended December 31, 2014

81

No prior audit findings.

mayo a-133 facr rpts/2014...mayo clinic consolidated statements of cash flows years ended december...

Documents