TCNJ

2 FY 21 ANNUAL FINANCIAL REPORT Introduction TCNJ's long tradition of prudent fiscal management, 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. For the fiscal year ending June 30, 2021, the college finished with an increase of $3.3 million in net position excluding the recognition of $17.7 million in net pension expense based on the external reporting requirements of GASB 68. e increase in net position is one indicator that the college's financial health continues to improve. e economic impacts associated with COVID-19 were significant, but the college's broad range of actions early during the pandemic served to strengthen the institution's financial position. To mitigate the adverse financial impacts, the college significantly reduced discretionary spending, instituted a hiring freeze, suspended travel by college personnel, and accepted approximately $21.9 million in federal emergency relief funds to partially offset institutional losses. With the approval of the Board of Trustees, management took proactive steps to strategically restructure over $180 million of the college's debt portfolio. is allowed the institution to capture significant cash flow savings of approximately $88 million over the next five fiscal years, while providing the flexibility to make strategic investments, reduce the near-term debt burden and build-up institutional reserves. Despite the negative financial impact, the college made pandemic-driven investments in health and safety (testing, physical facilities, telework), technology (classroom upgrades to support remote instruction), faculty training in virtual instruction, and graduate programs (marketing and new program initiatives), most with long- term benefit to the college. Cognizant of our responsibility to allocate resources strategically and keep the cost of education at TCNJ affordable, the college will continue to identify areas for focused review and actionable strategies that can be enacted to ensure the maintenance of its long-term financial health in a post-pandemic era. ese focused reviews will be coordinated with two major institutional initiatives, a new strategic planning framework and the enterprise risk management program.

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