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 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