TCNJ

12 Our FINANCIALS THE COLLEGE HAS a long tradition of prudent fiscal management and resource allocation enabling it to continue to strengthen its financial position while responding to challenges and opportunities. TCNJ's leadership emphasizes long-term financial sustainability in its operational decisions and regularly generates an operating surplus to fund strategic initiatives and build reserve levels. The College of New Jersey and its Foundation are financially strong, with total net assets of $372.5 million and stable long-term bond ratings as of the close of last fiscal year on June 30, 2012. Increased Net Assets The improved financial position is reflected in the increase to net assets. During fiscal years 2012 and 2011, net assets increased by $10 million, or 3 percent, and $13 million, or 4 percent, respectively. In both fiscal years, the increases were directly related to positive operating performance, investments in plant, and the growth of our endowment portfolio. Endowment Growth Our Foundation's assets have steadily grown over the past six years, as a result of generous gifts from alumni, parents, and friends, coupled with investment appre- ciation. The endowment, which consists primarily of cash and investments, totaled $24.7 million as of June 30, 2012. State Support TCNJ has seen a continued decline in its base state appropriation, although total state appropriations (which include fringe benefits paid by the state) have been relatively flat due to the rising cost of healthcare and other fringe benefits. With the State continuing to face fiscal pressures, we believe it is unlikely that this historical pattern will change and thus believe that it is also unlikely that state support will keep pace with the College's needs. Historically, there has been a direct relationship between the reduction of state support and the College's ability to control tuition and fees increases, as reduced growth in state appropriations generally necessitates increased tuition and fee levels. Our strategic planning initiatives are addressing this challenge as we work to minimize tuition and fee increases. Positive Outlook We are overcoming the challenge of limited state support and increased demand for financial aid by implementing thoughtful cost-containment initiatives, expanding fundraising activities, diversifying revenues, upgrading facilities, enhancing entrepreneurial activity, and pursuing organizational efficiencies. Our commitment to preserving the quality of our academic programs remains unwavering, demonstrated by our contin- ued investment in areas of direct student support, including instruction, research, student services, academic support, and scholarships. We are confident about our positive financial position moving forward, thanks to our steadily increasing enrollment applications, our ability to attract and retain high-achieving students, and our consistently strong operating performance.

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