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TCNJ Annual Financial Report - FY21

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5 FY 21 ANNUAL FINANCIAL REPORT Financial Performance Overview The college's total assets of $794 million (net of accumulated depreciation of $384 million), decreased by $6.1 million or 0.8% as of June 30, 2021, primarily due to the depreciation of capital assets. Working capital, which is current assets less current liabilities, was approximately $96 million, an increase of $40 million from the previous year. is change was primarily due to the increase in cash and investments, coupled with the reductions in accounts payable, accrued expenses, and the current portion of bonds payable. Working capital is a key financial metric used to measure the college's liquidity for operations. It measures the institution's ability to satisfy its current obligations as they come due. With current assets at over 4.0 times above current liabilities, the college had adequate liquidity to satisfy its current obligations. Deferred outflows of resources consist of deferred amounts from debt refunding and pensions. In fiscal year 2021, the debt refunding amounts had a net decrease of $22 million primarily due to the recognition of deferred outflows from bond refinancing activities, while the deferred outflows relating to pensions increased by $67 million due to the recording of the changes in the allocated pension liability as required by GASB 68. Total liabilities had a net increase of $78.5 million, totaling $606.2 million as of June 30, 2021. Current liabilities decreased by $27.4 million due to the debt restructuring activities, while noncurrent liabilities had an increase of $105.8 million, primarily due to a $65.6 million increase of the net pension liability under GASB 68 and $42.5 million increase in bonds payable and other long-term obligations from the series 2020D debt restructuring.

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