Annual Report 2022

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