TCNJ

9 FY 21 ANNUAL FINANCIAL REPORT Expenses The college has consistently demonstrated its commitment to preserving the quality of its academic programs despite the challenging state funding environment by continuing to allocate a significant portion of its operating expenses to direct student support (instruction, research, academic support, and student services) and to college-funded scholarships which are reported as a reduction of student revenues in the audited financial statements. Nonoperating expenses are those not incurred by the college's core mission and include such activities as interest on debt and transactions with institutionally affiliated organizations. Operating Expenses In fiscal year 2021, total operating expenses were $228.9 million, representing an overall net decrease of $6.7 million over the previous fiscal year. e College's operating expenses decreased by $23.5 million due to salary and fringe savings from furloughs and vacancies, reductions in discretionary spending and in auxiliary activities. ese decreases were offset by a $16.8 million increase in net pension expense for the College's proportionate share under GASB 68. Instruction and Research e combination of instruction and research represent the college's largest operating expense allocation. In fiscal year 2021, the net increase of $2.7 million resulted from the $8.2 million in pension expense allocation which was offset by salary and fringe savings from furloughs plus non-salary expense reductions in these categories. Institutional Support In fiscal year 2021, institutional support increased by $2.7 million, primarily due to the allocation of pension expense of $2.4 million coupled with the fact that the administrative overhead recovery from the auxiliary operations totaling $3.8 million were suspended. e net increase was offset by salary and fringe benefits savings from furloughs plus non-salary expense reductions made during the fiscal year.

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