TCNJ

e College of New Jersey ANNUAL REPORT 2017–2018 e college's long tradition of prudent management, cost containment, conservative budgeting, and sensible investment strategies has allowed it to continue to strengthen its financial position through positive operating results and to weather unforeseen fiscal challenges. Moody's Investors Service September 27, 2018, credit rating report cites TCNJ's "Healthy operating performance from conservative budgeting and prudent fiscal management resulting in average operating cash flow margin of 20%." Rating agencies continue to highlight the college's very good financial reserves and liquidity as strengths that position TCNJ well to continue providing excellence in educational programs to our students and service to the state, and to achieve its strategic goal of long-term financial sustainability. ASSETS AND LIABILITIES* The assets of the college totaled $869 million (net of accumulated depreciation of $310 million) as of June 30, 2018. This balance reflects a net decrease of $9.2 million, or 1.0 percent, compared to June 30, 2017. The decrease resulted primarily from an $11 million reduction in deposits held by bond trustees for debt service payments offset by the investment portfolio strong performance. The investment portfolio generated over $5.1 million, or 5.90 percent, in fiscal year 2018, compared to $5.3 million, or 6.8 percent, the previous fiscal year. Deferred outflows decreased by $12.8 million, or 16.6 percent, primarily due to a $10.9 million decrease in the Government Accounting Standards Board (GASB) 68 pension amounts allocated to the college. Total liabilities decreased by $38.4 million, totaling $610 million as of June 30, 2018, primarily due to $11.6 million of payments of principal on long-term debt and a $20.6 million decrease in the college's allocation of the State of New Jersey pension liabilities under GASB 68. NET POSITION* The college's net position before the GASB 68 non-cash adjustment to the financial statements in fiscal year 2018 increased $6.9 million, but due to the recording of $13.1 million pension expense under GASB 68, the reported net position showed a decrease of $6.0 million, or 2.0 percent, totaling $300 million as of June 30, 2018. The change in net position is a measure of whether the overall financial condition has improved or worsened during the year. The consistent increase in net position (excluding the non-cash GASB 68 adjustment) is a key indicator that the college's financial health continues to improve, reflecting sound and careful fiscal management across the institution. e college may be required to include the impact of GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other an Pensions in its fiscal year 2018 audited financial statements based on a decision from the State of New Jersey. However, as of the date of this annual report, the state has not communicated its determination to TCNJ; therefore, the financial information presented herein is unaudited. OUR FINANCIALS Direct student support Operation and maintenance of plant Institutional support Auxiliary activities Depreciation and impairment loss Public service and other FY18 TOTAL EXPENSES $238 MILLION 51% 12% 10% 9% 15% 3% Gross tuition and fees NJ state appropriations Gross auxiliary activities Government grants and contracts Investment income Capital grants and gifts Other FY18 TOTAL REVENUE $277 MILLION 20% 7% 20% 2% 3% 46% 2%

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