Annual Report 2022


TABLE OF CONTENTS NSU Highlights Financials i

Many words can be used to describe a university, but two come to mind for Nova Southeastern University: resilient and innovative. NSU has weathered the challenges of the past few years and emerged stronger and more determined in many areas, such as health care. One measure of NSU’s strength is its ability to grow and sustain the number of incoming undergraduate students at a time when many universities are experiencing significant declines. ii

iii THE PATH TO 2025 Despite the challenges brought on by a global pandemic, NSU remained committed to advancing its strategic priorities. The goal of joining the top lists of prestigious institutions has been foundational to the university since day one, and this is further reflected in Vision 2025 and the pursuit of being recognized as a preeminent, doctoralresearch university by 2025. With our core values as our keystone, NSU is focusing on areas of preeminence in research and academics. As such, we have expanded our cumulative goals to raising $500 million in philanthropic gift commitments and $500 million in grants/ contracts awarded since fiscal year 2009, representing a combined billion-dollar 2025 cumulative external funding campaign. NSU has already demonstrated its leadership and preeminence in many areas, including medical research, early childhood development, and marine research and ocean conservation. NSU’s Vision 2025 Strategic Plan drives all the ways that NSU continues to innovate and set a standard of excellence for others to follow.

HEALTH CARE NSU’s mission is to make a meaningful and positive impact to build a healthier world. The university has identified multiple areas of impact where it can address urgent needs. One area is health care, where NSU is committed to educating the next generation of professionals who will serve in communities around the world to improve their physical and mental well-being. In 2022, the NSU Dr. Kiran C. Patel College of Allopathic Medicine achieved a milestone in this endeavor—the graduation of its first-ever class in its M.D. program. Additionally, multiple NSU health care programs, including M.D. and Clinical Psychology, have 100% placement rates for residencies and internships. iv

NSU researchers made great advancements in a wide variety of fields, including one study of the genome of women in Botswana, which found three genes that could potentially be used in novel therapies to treat HIV/AIDS. In another project, NSU researchers studied the genome of leopards and found that African leopards should be classified as a single subspecies distinct from Asian leopards. This research is important because it will aid in conservation management of leopards, which are classified as highly vulnerable. Additionally, in spring 2022, the NSU Neuroscience Institute was created, which will expand the university’s educational and research footprint by studying neurological conditions such as Lou Gehrig’s disease (ALS), Alzheimer’s disease, epilepsy, and seizures. Many of the university’s academic programs continue to earn high recognition. Most recently, in this past fiscal year, the Clinical Mental Health Counseling concentration at NSU’s College of Psychology received its initial, eight-year accreditation from the Council for the Accreditation of Counseling and Related Educational Programs. This latest accreditation is the culmination of years of work and is a testament to the program’s quality. RESEARCH AND EDUCATION Photography: Ekaterina Blidchenko v

INNOVATION AND ECONOMIC DEVELOPMENT NSU’s impact on economic and business development in Florida continues to expand, and a key element for that growth is the Alan B. Levan | NSU Broward Center of Innovation, which opened in fiscal 2022. The cuttingedge Levan Center of Innovation occupies 54,000 square feet at the Fort Lauderdale/Davie Campus and is helping entrepreneurs grow innovative startups into businesses that support our economy locally, nationally, and globally. The Levan Center of Innovation is also home to a military-grade cybersecurity range and partners with the NSU College of Computing and Engineering. NSU has been designated by the National Security Agency as a National Center of Academic Excellence in Cybersecurity. The Levan Center’s mission will be bolstered by a $742,000, three-year grant awarded to NSU as part of the U.S. Economic Development Administration’s “Build to Scale” program that is designed to accelerate technology entrepreneurship. vi

DIVERSITY, EQUITY, INCLUSION, AND BELONGING The university is dedicated to fostering belonging, diversity, equity, inclusion, and teamwork in our shared communities, here at home and around the world. To that end, the university established the student-focused Diversity, Equity, Inclusion, and Belonging Office, as well as the Belonging, Equity, Diversity, and Inclusion Advisory Council that represents all NSU colleges and administrative units. Together, these two leadership groups, and the wider Shark community, are dedicated to giving everyone at NSU a voice to facilitate positive change. As one of NSU’s eight core values, NSU’s 15 academic units celebrate diversity and incorporate it into education, research, and training. vii

OCEAN AND MARINE LIFE CONSERVATION For NSU, making a positive impact on the world includes sustaining the oceans and marine life, and the natural world around us. Over the past decade, researchers at the Halmos College of Arts and Sciences’ Oceanographic Campus have been growing coral in a nursery to preserve genetic diversity and create more coral beds in our oceans. After two years, the Stony Coral Tissue Loss Disease (SCTLD) rescue project (also known as the “Noah’s Ark” project) has saved 980 corals from risk of infection from stony coral tissue loss disease in the Florida Keys, which has resulted in large coral die-offs across Florida and the Caribbean. The university’s dedication to marine life is also evident in the partnership between the Broward County Sea Turtle Conservation Program and NSU. With the help of volunteer community organizations, participants monitor 24 miles of beaches in Broward County to study and protect sea turtle nests and ensure that sea turtles aren’t threatened by predators or human interference. viii


ARTS AND CULTURE NSU has a long history of cultivating the arts community, with the goal of enriching cultural life and ensuring everyone has access to expand their horizon. The NSU Art Museum Fort Lauderdale—with its robust, diverse collection and visiting exhibitions— continues to be a premier destination for art and educational programs encompassing all facets of civilization’s visual history. Its exhibits contribute to discussions that address identity, inequalities, and injustices; encourage empathy and compassion; and inspire wonder. In 2022, the museum appointed its first LGBTQ+ ambassador as part of its commitment to being an arts and culture destination for everyone. Since 2018, the museum has organized the annual “A Sense of Pride’’ initiative to respond to issues affecting the LGBTQ+ community and provide free workshops and programming that foster inclusion, acceptance, and understanding. Together with the Alvin Sherman Library, Research, and Information Technology Center’s LGBTQ+ speaker/event series in 2022, the NSU community is making a difference in many people’s lives. x

NSU UNIVERSITY SCHOOL NSU University School (USchool) nurtures its students through innovation in education. USchool students benefit from the resources of the university and participation in experiences that will prepare them for the real world. Earlier this year, USchool created its inaugural cohort of Business Fellows in a partnership with NSU’s H. Wayne Huizenga College of Business and Entrepreneurship. A dozen Upper School students worked with college faculty members and students to learn about fields such as accounting, marketing, real estate, and sports management. The USchool’s Ecossentials team won the Company of the Year award (as well as six other awards) at the Junior Achievement (JA) of South Florida Spark Tank Finale. The team also won the FedEx Global Possibilities Award at the JA National Student Leadership Summit 2022. xi

ATHLETICS NSU champions the drive to excellence, leadership, and teamwork—along with personal well-being—through collegiate athletics, recreational sports, and fitness programs. This last year, the NSUmen’s basketball team celebrated an undefeated season in the Sunshine State Conference and reached the NCAA Division II Championship Tournament’s Elite Eight, out of 64 teams competing. Similarly, the women’s tennis team closed out a 25-4 season at the Final Four of the NCAA championships. The women’s volleyball team also reached the NCAA championships for the first time since 2009. Additionally, two members of NSU’s swim teams competed at the 2021 Tokyo Olympics, representing Senegal and El Salvador. xii

The future is brimming with possibilities as NSU’s Sharks swim toward recognition as a preeminent university. One measure of the university’s rise is our position in U.S. News & World Report’s 2022 Best Colleges rankings. NSU is ranked at 213 in the nation, which represents an incredible 33-spot jump in just two years. NSU is also ranked on the Forbes America’s Top Colleges list, as well as the WSJ/THE College Rankings. The world is taking note of NSU’s achievements and our commitment to creating a healthier world. APPOINTMENTS The university appointed college and research leadership during the fiscal year: Holly Lynn Baumgartner, Ph.D. Dean of the Halmos College Linda S. Rouse, O.D., M.B.A., FAAO Dean of the College of Optometry** Andrea Nevins, Ph.D., M.F.A. Dean of the Farquhar Honors College* Ken Dawson-Scully, Ph.D. Associate Provost and Senior Vice President for Research and Economic Development *Former Interim Dean of the Halmos College. **Former Interim Dean and Assistant Dean of the College of Optometry. xiii

MISSION STATEMENT The mission of NSU—a selective, doctoral-research university— is to deliver innovative academic programs in a dynamic, lifelong learning and research environment fostering integrity, academic excellence, leadership, and community service through engaged students, faculty, and staff. VISION 2025 STATEMENT By 2025, NSU will be recognized as a preeminent, professional-dominant, doctoral-research university that provides competitive career advantages to its students and produces alumni who serve and lead with integrity. CORE VALUES Integrity Academic Excellence Community Diversity Innovation Opportunity Research/Scholarship Student Centered

CONSOLIDATED FINANCIAL STATEMENTS 2022 Table of Contents Management’s Discussion and Analysis (unaudited) . . . . . . . . . . . . . . 1 Audited Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . 9 Management’s Responsibility for Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Report of Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . 13 Consolidated Statements of Activities . . . . . . . . . . . . . . . . . . . . . . . . 14 Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . 15 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . 16 Supplementary Information Financial Responsibility Supplemental Schedule . . . . . . . . . . . . . 49 Notes to Financial Responsibility Supplemental Schedule . . . . . 50

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 0 100 200 300 400 500 600 700 800 900 1,000 $ 1 , 100 $ $ $ $ $ $ $ $ $ $ $ FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 NET ASSETS Total Dollar Amount in Millions Without Donor Restrictions With Donor Restrictions Overview Despite historic conditions adversely impacting the financial markets during the last half of fiscal 2022, Nova Southeastern University (NSU, or the university) maintained its fiscal strength with sustained total net assets of over $1.0 billion. As demonstrated in the following chart, over the past decade, total net assets have grown by 83 percent, from $570.6 million as of June 30, 2012, to $1.0 billion as of June 30, 2022. Factors contributing to the sustained growth include the university’s diverse academic program offerings and student base, coupled with strong philanthropic support, as well as its ability to respond and adapt to the challenges and changes inherent in higher education. Operational Highlights During an unprecedented global pandemic, NSU remained steadfast in its commitment to advancing strategic priorities. During fiscal 2021, the university embarked on the next phase of its plan, striving toward preeminence with Vision 2025. During fiscal 2022, the updated business plan was published and goals were unveiled in the areas of students; philanthropic resources; scholarship and research; community service; and belonging, equity, diversity, and inclusion. NSU’s strategic emphasis drove operating results and noteworthy milestones during fiscal 2022, including n Sustained strong overall fall-term university enrollment of 20,898, with record-high total undergraduate enrollment of 6,637 n Continued expansion in academically high-demand and industry-relevant programs n Advancement of strategic capital plans and the opening of a new center focused on innovation n Enhanced ranking and reputation, emanating from academic quality recognition and research accomplishments ExpandingUndergraduate andHealth Professions Programs In fall 2021, NSU welcomed 1,672 first-time-in-college freshmen, near its record of 1,689 in fall 2020. For the fifth year in a row, NSU’s overall undergraduate enrollment increased, growing 55 percent from fall 2016 to fall 2021. The distinctive Dual Admissions Program, offering prospective undergraduate students a reserved spot in selective graduate/professional programs, continues to attract academically highly qualified students, 1

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 supporting strategic goals for enhanced student quality, experience, and outcomes. NSU is one of only four universities in the United States to offer both a D.O. and M.D. program, and the first and only university in the state of Florida to grant both degrees. In May 2022, the Dr. Kiran C. Patel College of Allopathic Medicine (KPCAM) celebrated the graduation of its first class of M.D. students, who were admitted in fall 2018. KPCAM’s inaugural graduating class of 46 joined the 231 D.O. graduates in fiscal 2022 from NSU’s Dr. Kiran C. Patel College of Osteopathic Medicine (KPCOM) in helping to alleviate the local and national physician shortage. Overall fall 2021 enrollment in KPCAM and KPCOM (undergraduate, graduate, and professional programs) totaled 2,634, increasing a combined 14 percent from the prior year (fall 2020) and 52 percent over a three-year period (from fall 2018 to fall 2021). KPCOM’s growth is largely attributable to its expansion at the Tampa Bay Regional Campus beginning fall 2019. During fiscal 2022 (fall 2021), the third class of 163 D.O. students was admitted in Tampa Bay to the program for a total Tampa Bay D.O. enrollment of 474. The College of Dental Medicine expanded its D.M.D. program to the Tampa Bay Regional Campus beginning May 2022, welcoming its first cohort of 38 international dental students. Approximately 19,000 square feet of the campus was outfitted to house a student clinic, simulation lab, and supporting offices and classrooms. Additionally, NSU expanded its Anesthesiology Assistant program at a new leased site in the Denver, Colorado area during fiscal 2022. New Facilities Supporting Strategic Initiatives In fiscal 2022, NSU developed a multiphased plan for strategic capital investments, beginning with a stateof-the-art interprofessional simulation complex for which construction is scheduled to commence in fall 2022. With progressive tools and immersive techniques in healthcare, the 107,000 square-foot complex is anticipated to play a major role in further advancing NSU’s health and medical education, research, and patient care. NSU opened the new Alan B. Levan | NSU Broward Center of Innovation (the Levan Center of Innovation) in fiscal 2022, showcasing NSU’s core value of innovation with a focus on technology and entrepreneurship. A continuation of a long-standing public-private partnership with NSU and Broward County, the stateof-the-art, 54,000-square-foot center occupies the top floor of the Alvin Sherman Library, Research, and Information Technology Center and is one of the largest of its kind in the nation. Enhancing Quality and Advancing Research In the U.S. News & World Report 2022 college rankings, NSU stands at 213, in the National Universities list, climbing 33 spots over two years. Additionally, NSU ranked 59 in Top Performers on Social Mobility, compared to 165 two years ago. Also noteworthy, NSU tied for 21 on the Diversity Index among nationally ranked institutions. In terms of significant academic program recognitions during fiscal 2022, the graduate mental health counseling program in the College of Psychology received its first-ever, eight-year accreditation from the Council for Accreditation of Counseling and Related Educational Programs, a specialized accrediting body for graduate counseling programs in the United States. NSU also advanced research initiatives in fiscal 2022, with ongoing studies addressing topics of national significance, as well as various new, multi-year grant awards. Of note, the College of Dental Medicine received a $2.4 million award from the National Institutes of Health related to a specific study on periodontal disease. NSU received a $3.5 million award from Florida Department of Health to support provision of, and improved access to, health care services for uninsured veterans and their families. KPCOM received a $1 million award for a specific study related to Gulf War Illness, in support of improved therapies for affected individuals, in addition to a continuing $3.9 million award to provide tobacco cessation and training services in support of public health. The Halmos College of Arts and Sciences received a $1.2 million award focused on improved understanding of the physical oceanographic environment and wave behavior. 2

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 Financial Performance Total revenues were $674.1 million in fiscal 2022, down 11.1 percent from $758.4 million in the prior year. The decrease was directly attributable to investment market conditions resulting in $78.5 million of unrealized investment losses in fiscal 2022, compared to $37.1 million of unrealized investment gains in fiscal 2021. Excluding net realized and unrealized investment gains and losses, total revenues increased $30.1 million or 4.2 percent to $747.5 million in fiscal 2022 from $717.4 million in fiscal 2021. Total expenses increased by 8.5 percent to $686.0 million in fiscal 2022 from $632.1 million in fiscal 2021. Total net assets decreased by $11.9 million, or 1.1 percent. FY 2022 COMPOSITION OF REVENUES (EXCLUDING INVESTMENT GAINS AND LOSSES) Interest and Dividends—2.0% Net Tuition and Fees—78.2% Contributions and Private Grants—2.5% Government Grants and Contracts—7.5% Auxiliary Operations—6.7% Other Revenues—3.1% Regional Campuses and Other Locations, 17% Fully Online, 28% Fort Lauderdale/ Davie Campus, 55% APPROXIMATE FALL 2021 ENROLLMENT COMPOSITION Revenues Net Tuition and Fees Total tuition and fees (reported net of scholarships and discounts) approximated $584.3 million, increasing $18.9 million or 3.3 percent from the prior year. Diversification Within Tuition Revenue NSU’s academic programs are as diverse as its student body; accordingly, there are several components of enrollment and resulting tuition revenue. n 15 different colleges and schools n over 150 academic degree programs with varying tuition rates n 68 percent graduate and first-professional students; 32 percent undergraduate students Furthermore, the following depicts the fall 2021 enrollment composition by modality, which remained unchanged from fall of the prior year: Enrollment In fiscal 2022 (fall 2021), overall enrollment remained consistent with a total of 20,898 students compared to 20,888 the previous fall. The Health Professions Division (HPD), which houses seven colleges, comprised approximately 52 percent of the university’s total net tuition and fee revenue and 44 percent of its total fall enrollment in fiscal 2022. Total fall HPD enrollment increased approximately 3 percent compared to the previous fall, and 11 percent over the past five years (from fall 2016 to fall 2021). As part of the university’s strategic initiatives, it continues to invest in high-demand and industry-relevant programs with growth potential, such as expansion within the HPD professional programs as previously described. Realizing the anticipated benefits of heightened admission standards and other strategic initiatives that were implemented, the undergraduate population has steadily increased over the last five years. This increase, coupled with increasing professional enrollments in the HPD, have helped to offset graduate enrollment declines, which have been largely contained to two colleges and are reflective of changes in the economy and educational demands in certain areas. In these areas, the university has implemented specific strategies to right-size resources and program offerings. Strategic action steps have also been taken in recruitment, admission, retention, and marketing efforts through enhanced communication plans, increased personal outreach to students, and increased faculty engagement in recruitment efforts. 3

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 NSU continues to leverage and support its strengths in graduate and professional education while growing the undergraduate population. The university’s unique Dual Admissions Program provides highly motivated undergraduate students with the opportunity to reserve a seat in one of NSU’s graduate or professional colleges while earning their bachelor’s degree. Other examples include the Abraham S. Fischler College of Education’s Fischler Academy, an elite teacher preparation program launched in fall 2018, and the H. Wayne Huizenga College of Business and Entrepreneurship’s Huizenga Business Innovation Academy launched in fall 2019. These academy programs allow first-time-in-college students to earn both their bachelor’s and master’s degrees in just four years. Upon successful completion of the Business Innovation Academy program, students have an opportunity to receive a monetary award toward their own business startup. NSU’s brand campaign, the NSU Edge, highlights the university’s strengths, and shows how these strengths provide its students with a competitive advantage in their career, life, and community. This promise is demonstrated in numerous ways across the university, from immersive learning experiences to faculty mentoring to community outreach. For example, undergraduate students receive a dedicated, personal career coach to guide them through their time at college; dual-admission programs give students a faster track to graduate and professional schools; and graduate and professional students have opportunities to connect with leading faculty members who have professional experience outside the classroom. Contributions and Private Grants Contributions and private grants revenue was $18.5 million in fiscal 2022 compared to $38.3 million in fiscal 2021, primarily due to a significant gift commitment recognized in fiscal 2021 in connection with the international dental program expansion at the Tampa Bay Regional Campus as previously described. Government Grants and Contracts Government grants and contracts revenue approximated $55.9 million in fiscal 2022, increasing 30.8 percent, or $13.2 million, from $42.7 million in fiscal 2021, mainly attributable to an increase in revenues recognized from Higher Education Emergency Relief Fund (HEERF) allocations. Auxiliary Operations Auxiliary operations revenue totaled $50.2 million and $40.7 million in fiscal 2022 and 2021, respectively, representing a $9.6 million or 23.5 percent increase. The growth was driven by increased campus housing and meal plan revenues resulting from more students residing on campus in fiscal 2022 compared to fiscal 2021 during the height of the COVID-19 pandemic. Other Revenues Other revenues increased $4.7 million in fiscal 2022 to $23.1 million from $18.4 million in fiscal 2021, related to various areas, including certain claim-related reimbursements received, along with improvements in revenue associated with NSU’s Grande Oaks Golf Club and the university’s interest in a limited partnership. 4

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 Expenses Expenses totaled $686.0 million in fiscal 2022 compared to $632.1 million in fiscal 2021, representing an increase of $54.0 million, or 8.5 percent, attributable to a variety of factors. In fiscal 2021, salary savings and lower spending in certain areas (such as travel, events, and specific services) were related to circumstances and uncertainties surrounding the COVID-19 pandemic. As conditions changed and impacted areas resumed more normalized activities, expenses naturally increased. Salaries and wages included new positions in certain programs and merit increases; supplies and services grew broadly across all categories; space and occupancy was led by new operating leases, repairs and maintenance, cleaning and utility expenses; and other expenses captured increased student emergency grants supported by HEERF allocations and rising insurance costs and travel. These collective increases were partially offset by a decrease in depreciation expense due to a change in the accounting estimate associated with equipment salvage values that occurred in fiscal 2021. Financial Position The university has total assets of $2.0 billion, total liabilities of $912.2 million, and resulting net assets of $1.0 billion. Total assets increased $137.5 million or 7.6 percent from the prior year driven by a $158.5 million increase in total cash and investments, a $9.1 million increase in rightof-use assets associated with operating leases, partially offset by a $22.4 million decrease in net land, buildings and equipment attributable to depreciation expense exceeding annual capital expenditures. The university continues to strengthen its financial resources with sustained growth in total cash and investments. At $837.5 million at June 30, 2022, the total has more than doubled over the last five years. Net proceeds received from the Series 2022 bonds issued in March 2022 of $148.6 million (as further described in the following debt section) comprise most of the $158.5 million increase from the prior year total of $679.0 million. Apart from approximately $12.9 million received in fiscal 2020, unspent bond proceeds in historical periods were held by trustees whereas the university directly received the Series 2022 bond proceeds, which are anticipated to be utilized for future capital projects. Excluding net bond proceeds, and despite unrealized investment market losses, total cash and investments increased by $9.9 million or 1.5 percent over the prior year and $322.0 million or 91.0 percent over the past five years. TOTAL CASH AND INVESTMENTS[ ] $838 $416 $354 $447 $530 $679 (in millions) 0 400 600 800 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 [1]Includes endowment and other restricted funds; excludes Foundation assets. Includes net bond proceeds from issuances occurring during FY 2020 of $12.9 million and FY 2022 of $148.6 million. 1,000 $ $ $ 200 $ $ $ FY 2022 COMPOSITION OF EXPENSES Salaries and Wages—44.3% Depreciation—7.0% Employee Benefits—10.9% Interest—2.9% Supplies and Services—16.3% Other—8.9% Space and Occupancy—9.7% 5

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 Investment performance of the university’s pooled endowment fund was monitored by Crewcial Partners through June 30, 2021, and Prime Buchholz beginning July 1, 2021. The fund experienced a decrease of 16.9 percent in fiscal 2022, compared to a return of approximately 34 percent in the prior year, based on changes in market conditions. The composite asset mix for the $157.2 million endowment fund as of June 30, 2022, was as follows: 0 50 100 150 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2022 200 $ $ $ $ $ POOLED ENDOWMENT GROWTH $105 $157 $115 $128 $132 $185 (in millions) Equities—31.1% Fixed Income Securities—20.8% International Equities—26.1% Alternative Assets—18.8% Cash—3.2% POOLED ENDOWMENT COMPOSITE ASSET MIX FY 2022 Endowment The university’s endowment is a collection of gift funds and reserves that are set aside and invested primarily for scholarships. The solid investment strategy to preserve real purchasing power, and the university’s goal to maximize long-term total return and predictability of payout allocations, combined with donor’s philanthropic contributions to support the future of NSU students, has resulted in sustained growth for the endowment over time. At June 30, 2022, endowment net assets (including endowment-related pledges receivable) totaled $200.8 million, representing 19.3 percent of the university’s total net assets. The following chart shows the market value of the university’s pooled endowment fund has increased 50.1 percent in the past five years, from approximately $105 million as of June 30, 2017, to approximately $157 million as of June 30, 2022. The long-term investment strategy, supported by a diversified asset mix, is designed to weather periodic market fluctuations as experienced during fiscal 2022. There was $0.8 million of receipts in transit to the pooled fund as of June 30, 2022. In addition, there was $3.6 million separately invested (pursuant to terms associated with an endowment grant program) as of June 30, 2022, that experienced a decrease of 4.4 percent in fiscal 2022. Endowment-related pledge receivables outstanding as of June 30, 2022 and 2021, were $39.2 million and $37.8 million, respectively. 6

ASSETS AND LIABILITIES FY 2022 COMPOSITION * Includes finance and operating leases (beginning FY 2021 upon adoption of new accounting standard) $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Cash and Investments Plant Assets, Net Lease Assets* All Other Assets Debt Lease Liabilities* All Other Liabilities TOTAL LIABILITIES TOTAL ASSETS 43% 45% 5% 7% 67% 11% 22% LIABILITIES ASSETS (inmillions) Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 Capital Projects The university invested $26.5 million in capital projects during fiscal 2022, with gross land, building, and equipment before accumulated depreciation maintained at $1.5 billion. During fiscal 2022, the university completed construction of the Levan Center of Innovation, as well as leasehold improvements to the Tampa Bay Regional Campus supporting the College of Dental Medicine’s D.M.D. program expansion, both of which were previously described and opened during fiscal 2022, along with several smaller capital projects. Debt and Other Liabilities Total liabilities increased $149.4 million or 19.6 percent to $912.2 million as of June 30, 2022 from $762.8 million as of June 30, 2021. In March 2022, the university issued $150.0 million Series 2022 taxable bonds, the net proceeds of which will be utilized for general corporate purposes, including future capital projects pursuant to a multiphased plan as previously mentioned. Total debt at par value increased by $136.5 million or 30.4 percent to $585.1 million as of June 30, 2022 from $448.6 million as of June 30, 2021, based on new debt added of $150.0 million less principal payments made during the fiscal year of $13.5 million. The university’s debt portfolio is comprised of all fixed rate bonds, with no variable-rate debt outstanding. Over the past five years (fiscal 2017 to fiscal 2022), the total par value of debt has grown by 54.7 percent, which is modest as compared to the growth in total cash and investments, excluding unspent bond proceeds, of 91.0 percent, as previously stated. Also contributing to the increase in total liabilities year over year was an $8.6 million or 9.9 percent increase in operating lease liabilities, which total $95.5 million as of June 30, 2022. 7

Ma n a g eme n t ’ s D i s c u s s i o n a n d A n a l y s i s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 Fiscal Year 2018 2019 2020 2021 2022 Fall Enrollment Undergraduate 4,497 4,904 5,666 6,314 6,637 Graduate 12,577 11,868 11,054 10,548 10,073 Professional 3,719 3,663 3,856 4,026 4,188 Total Enrollment 20,793 20,435 20,576 20,888 20,898 Total Full-Time Equivalent 17,210 17,101 17,431 17,973 18,057 Freshman Admissions Applications 7,779 8,946 11,058 11,324 11,749 Acceptances 4,525 7,026 8,857 10,470 10,868 Enrollments 987 1,248 1,526 1,689 1,672 Undergraduate Tuition $ 28,980 $ 29,940 $ 31,150 $ 32,370 $ 33,510 Financial (in thousands) Total Assets $ 1,445,870 $ 1,549,998 $ 1,604,464 $ 1,816,842 $ 1,954,327 Total Liabilities $ 589,309 $ 658,238 $ 676,705 $ 762,756 $ 912,175 Total Net Assets $ 856,561 $ 891,760 $ 927,759 $ 1,054,086 $ 1,042,152 Total Revenues $ 702,311 $ 660,697 $ 691,006 $ 758,403 $ 674,106 Total Expenses $ 611,640 $ 625,498 $ 655,007 $ 632,076 $ 686,040 Endowment Net Assets $ 161,145 $ 170,727 $ 174,151 $ 226,994 $ 200,766 Plant Assets, Net $ 881,725 $ 944,258 $ 939,450 $ 916,240 $ 893,841 Financial and Statistical Highlights 8

Audited Consolidated Financial Statements

Ma n a g eme n t ’ s R e s p o n s i b i l i t y f o r Co n s o l i d a t e d F i n a n c i a l S t a t eme n t s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 George L. Hanbury II, Ph.D. University President and Chief Executive Officer Harry K. Moon, M.D. Executive Vice President and Chief Operating Officer Alyson K. Silva, M.AC., CPA Vice President for Finance and Chief Financial Officer Nova Southeastern University management is responsible for preparing the consolidated financial statements and related notes as well as for their integrity and objectivity. The consolidated financial statements, which include estimated amounts based on judgments, have been prepared in accordance with accounting principles generally accepted in the United States of America. The university maintains a system of internal controls that it believes provides reasonable assurance that transactions are executed in accordance with management’s authorization and are properly recorded, that assets are safeguarded, and that accountability for assets is maintained. As part of the annual consolidated financial statement audit, independent auditors review certain aspects of this system of controls, but do not provide any assurance thereon. They do provide recommendations for improvement where appropriate. The independent auditors have unrestricted access to the Audit and Compliance Committee (the committee) of the Board of Trustees, and to the Board of Trustees. The independent auditors meet with the committee at least annually to review internal accounting control, auditing, and financial reporting matters. 10

Management and the Board of Trustees of Nova Southeastern University, Inc. Report on the Audit of the Financial Statements Opinion We have audited the consolidated financial statements of Nova Southeastern University, Inc. (the “University”), which comprise the consolidated statement of financial position as of June 30, 2022, and the related consolidated statements of activities, and cash flows for the year then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the University at June 30, 2022, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the University, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the University’s ability to continue as a going concern for one year after the date that the financial statements are issued. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not absolute assurance, and therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we n Exercise professional judgment and maintain professional skepticism throughout the audit. n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. R e p o r t o f I n d e p e n d e n t Au d i t o r s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 11

n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control. Accordingly, no such opinion is expressed. n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the University’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Report on Summarized Comparative Information We have previously audited the University’s 2021 consolidated financial statements, and we expressed an unmodified audit opinion on those audited consolidated financial statements in our report dated September 24, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2021, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Financial Responsibility Supplemental Schedule as required by the U.S. Department of Education is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we also have issued our report dated September 29, 2022, on our consideration of the University’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the University’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University’s internal control over financial reporting and compliance. Boca Raton, Florida September 29, 2022 12

Co n s o l i d a t e d S t a t eme n t s o f F i n a n c i a l P o s i t i o n J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 ($ in thousands) ASSETS 2022 2021 Current Assets: Cash and cash equivalents $ 33,091 $ 51,484 Restricted cash 11,869 12,090 Investments 343,163 419,168 Tuition and other receivables, net 41,632 34,875 Pledges receivable, current portion, net 15,763 17,638 Prepaid expenses and other current assets 12,532 11,953 Total current assets 458,050 547,208 Pledges receivable, net 27,828 34,066 Bond deposits with trustees - 1,370 Foundation assets 7,085 8,842 Contributions receivable from remainder trusts 234 293 Scholarship funds held in trust by others 3,448 4,176 Designated investments 51,931 67,997 Restricted investments 94,848 107,662 Other investments 281,206 - Restricted cash and cash equivalents 21,422 20,615 Land, buildings, and equipment, net 893,841 916,240 Operating lease right-of-use assets 92,520 83,457 Other assets 21,914 24,916 Total assets $ 1,954,327 $ 1,816,842 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable and accrued liabilities $ 60,180 $ 62,743 Deferred revenue 74,116 67,551 Current portion of long-term debt 13,460 13,525 Operating lease liabilities, current 22,490 14,383 Other current liabilities 24,121 18,515 Total current liabilities 194,367 176,717 Long-term debt 596,031 462,986 Due to beneficiaries under remainder trusts and annuities 105 111 Accrued insurance cost 12,233 12,766 Deferred revenue 11,809 12,505 Operating lease liabilities 73,051 72,565 Other liabilities 24,579 25,106 Total liabilities 912,175 762,756 Net assets: Without donor restrictions $ 854,452 $ 837,843 With donor restrictions 187,700 216,243 Total net assets 1,042,152 1,054,086 Total liabilities and net assets $ 1,954,327 $ 1,816,842 See accompanying notes to consolidated financial statements. 13

Co n s o l i d a t e d S t a t eme n t s o f A c t i v i t i e s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 (with summarized financial information for the year ended June 30, 2021) ($ in thousands) Without Donor Restrictions With Donor Restrictions 2022 Total 2021 Total REVENUES AND RELEASES Net tuition and fees $ 584,260 $ - $ 584,260 $ 565,337 Contributions and private grants 2,128 16,394 18,522 38,265 Government grants and contracts - 55,902 55,902 42,727 Auxiliary operations 50,247 - 50,247 40,671 Interest and dividends 13,812 1,673 15,485 12,015 Net unrealized (loss) gain on investments (54,163) (24,324) (78,487) 37,060 Net realized gain on sale of investments 3,169 1,936 5,105 3,975 Other revenues 15,813 7,259 23,072 18,353 Net assets released from restrictions 87,383 (87,383) - - Total revenues and releases 702,649 (28,543) 674,106 758,403 EXPENSES Salaries and wages 303,963 - 303,963 290,250 Employee benefits 74,291 - 74,291 72,042 Supplies and services 111,913 - 111,913 88,971 Space and occupancy 66,810 - 66,810 56,289 Depreciation and amortization 48,231 - 48,231 58,392 Interest 19,475 - 19,475 17,557 Other 61,357 - 61,357 48,575 Total expenses 686,040 - 686,040 632,076 CHANGE IN NET ASSETS 16,609 (28,543) (11,934) 126,327 Net assets, beginning of year 837,843 216,243 1,054,086 927,759 NET ASSETS, END OF YEAR $ 854,452 $ 187,700 $ 1 ,042, 152 $ 1,054,086 See accompanying notes to consolidated financial statements. 14

Co n s o l i d a t e d S t a t eme n t s o f C a s h F l ows J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 ($ in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: 2022 2021 Change in net assets $ (11,934) $ 126,327 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation expense and amortization of finance lease right-of-use assets 48,231 58,392 Amortization of premiums and issuance costs related to bonds payable (2,106) (2,310) Noncash lease expense 17,082 14,200 Provision for doubtful accounts 2,868 4,471 Loss on disposal of equipment and buildings 717 349 Net realized gain on sale of securities (5,105) (3,975) Net unrealized loss (gain) on securities 78,487 (37,060) Contributions for investment and capital purchases (4,270) (27,704) Decrease (increase) in assets from prior year: Tuition and other receivables (10,005) (1,635) Pledges receivable 8,492 (9,161) Prepaid expenses and other current assets (579) 3,087 Foundation assets 1,757 (1,986) Contributions receivable from remainder trust and scholarship funds held in trust by others 59 (36) Other assets 3,002 (683) Increase (decrease) in liabilities from prior year: Accounts payable and accrued liabilities (3,167) 15,481 Accrued insurance costs and other current liabilities 5,059 (6,397) Deferred revenue 5,870 241 Operating lease liabilities (17,552) (10,643) Other liabilities 744 (2,328) Due to beneficiaries under remainder trusts and annuities (6) (19) Net cash provided by operating activities 117,644 118,611 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (25,945) (27,107) Sales and maturities of investments 251,122 346,002 Purchases of investments (500,101) (440,895) Net cash used in investing activities (274,924) (122,000) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 150,000 - Repayment of debt (13,525) (12,260) Decrease in bond deposits with trustees 1,374 3,401 Lease payments (1,257) (1,314) Financing costs (1,389) - Contributions for investment and capital purchases 4,270 27,704 Net cash provided by financing activities 139,473 17,531 Net (decrease) increase in cash, cash equivalents, and restricted cash (17,807) 14,142 Cash, cash equivalents, and restricted cash, beginning of year 84,189 70,047 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR $ 66,382 $ 84,189 Supplemental information: Interest paid, net of amounts capitalized $ 19,587 $ 17,816 Accrued capital expenditures $ 3,418 $ 2,814 See accompanying notes to consolidated financial statements. 15

No t e s t o Co n s o l i d a t e d F i n a n c i a l S t a t eme n t s J u n e 3 0 , 2 0 2 2 a n d 2 0 2 1 1. University Organization Nova Southeastern University, Inc. (NSU, or the university) is a not-for-profit, private institution and is exempt from federal income taxes on related income under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3). Founded in 1964, the university offers undergraduate degrees, graduate and firstprofessional degrees, and certificate programs to more than 20,000 full-time and part-time students in a wide range of fields, including the humanities, biological and environmental sciences, business, counseling, computer and information sciences, conflict resolution, education, family therapy, medicine, dentistry, various other health professions, law, marine science, performing and visual arts, psychology, and other social sciences. Courses are taught at 4 South Florida campuses; 8 regional campus locations, including Puerto Rico; and at sites in 6 states, as well as 3 foreign countries. NSU serves the residents of its community with health, psychology, and law centers; services for children with hearing impairments and autism; and programs for retired professionals. NSU University School offers innovative alternatives in primary and secondary education to children from preschool through grade 12. 2. Summary of Significant Accounting Policies Financial Statement Presentation The accompanying consolidated financial statements include the university and its wholly owned subsidiaries, NSU Guaranty Insurance Company, Ltd.; NSU Grande Oaks, LLC; NSU Park Plaza, LLC; NSU Health, LLC; and The Pointe Corporate Office Park Property Owners Association, Inc. The latter two legal entities have no financial activity to date. All significant intercompany balances and transactions have been eliminated in consolidation. NSU classifies its transactions and balances into two categories of net assets according to the absence or existence of donor-imposed restrictions: (1) net assets without donor restrictions and (2) net assets with donor restrictions. Net assets without donor restrictions include transactions and balances without donor-imposed stipulations and may be used to achieve any institutional purpose; however, the Board of Trustees may designate net assets without donor restrictions for a specific purpose. Net assets with donor restrictions include transactions and balances with donor-imposed stipulations that normally expire in time, or can be fulfilled by actions of the university. However, certain donor restrictions are perpetual as they neither expire over time, nor can be fulfilled by actions of the university, requiring the related net assets to be permanently retained. Such permanently retained net assets are included within the net assets with donor restrictions category. The consolidated financial statements include prior-year comparative information summarized in total, but not by net asset class. As this summarized information lacks sufficient detail for presentation in accordance with accounting principles generally accepted in the United States of America, the data should be read in conjunction with the prior year’s consolidated financial statements. Certain amounts contained in the accompanying fiscal 2021 consolidated financial statements have been reclassified to conform to the fiscal 2022 presentation. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires NSU to make estimates and assumptions about the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents Cash equivalents are investments with maturities of 90 days or less when purchased and are carried at cost, which approximates fair value. Restricted Cash Current restricted cash represents funds related to federal revolving student loan programs (see Note 10) and funds held on behalf of student clubs or organizations in which the university is serving in an agent capacity. 16