TCNJ

24 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 credit rating report of September 27, 2018, cites TCNJ's "healthy operating performance from conservative budgeting and prudent fiscal management resulting in average operating cash flow margin of 20 percent." 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 $855 million (net of accumulated depreciation of $335 million) as of June 30, 2019. This balance reflects a net decrease of $13.5 million, or 1.6 percent from the previous fiscal year. The decrease resulted primarily from a $5 million reduction in deposits held by bond trustees for debt service payments, liquidation of $10.4 million in cash and investments to fund operations and offset by the investment portfolio's strong performance. The investment portfolio generated over $4.8 million, or 5.4 percent, in fiscal year 2019, compared to $5.1 million, or 5.9 percent, for fiscal year 2018. Deferred outflows decreased by $11.6 million, or 17 percent, primarily due to an $8.7 million reduction in the proportion of the allocated pension liability under the Government Accounting Standards Board (GASB 68) for the college. Total liabilities decreased by $31.6 million, totaling $579 million as of June 30, 2019, primarily due to $14.8 million of payments of principal on long-term debt and a $13.2 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, excluding the GASB 68 non-cash adjustment to the financial statements in fiscal year 2019 increased $7.9 million, or 2.2 percent, totaling $358 million as of June 30, 2019. 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 is a key indicator that the college's financial health continues to improve, reflecting sound and careful fiscal management across the institution. The college is required to include the amounts (expense with the offsetting revenue) relating to GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions in its fiscal year 2019 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 provided TCNJ with its allocation; therefore, the financial information presented herein is unaudited. OUR FINANCIALS Direct student support Operation and maintenance of plant Institutional support Auxiliary activities Depreciation and loss on disposal Interest expense 10% 5% 46% 11% 8% 14% 6% Public service and other Net tuition and fees Net auxiliary activities State appropriations and fringe benefits Government grants and contracts Capital grants and gifts Investment income Other revenues 5% 3% 3% 41% 20% 20% 8% FY19 TOTAL REVENUES $266 MILLION FY19 TOTAL EXPENSES $258 MILLION

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