Management’s Discussion and Analysis June 30, 2024 and 2023 Contributions and Private Grants Contributions and private grants revenue increased $5.1 million to $36.4 million in fiscal 2024 compared to $31.3 million in fiscal 2023, thanks to the continued support from NSU’s donor community, including the significant gift commitment previously described. Government Grants and Contracts Government grants and contracts revenue was $49.0 million in fiscal 2024 compared to $36.5 million in fiscal 2023, with the $12.5 million increase attributable to an array of sponsored research activity, as well as other awards, such as for expanding access to healthcare services for veterans and their families. Auxiliary Operations Auxiliary operations revenue totaled $61.2 million in fiscal 2024, increasing $4.2 million or 7.4 percent from fiscal 2023 driven by growth in campus housing and clinical revenues. Other Revenues Other revenues were $30.9 million in fiscal 2024 compared to $37.4 million in fiscal 2023, with the decrease largely attributable to a gain on the sale of property recognized by an equity-method investee in fiscal 2023, partly offset by the net effect of certain claim-related proceeds that were recognized in both periods. Expenses Expenses totaled $796.8 million in fiscal 2024 compared to $749.8 million in fiscal 2023, representing an overall increase of $47.0 million, or 6.3 percent. Salaries and wages, along with employee benefits, increased a collective $25.4 million, primarily from merit and other salary adjustments coupled with new positions in certain programs. Supplies and services grew by $12.6 million across various areas as respective revenues increased. Space and occupancy rose $5.8 million from increased rent expense and repair and maintenance costs. Capitalized interest increased, causing a reduction in interest expense, as a result of higher capital project expenditures during fiscal 2024. Other expenses were up $5.2 million from increases in marketing and miscellaneous categories. Financial Position The university has total assets of $2.1 billion, total liabilities of $877.8 million and resulting net assets of $1.2 billion as of June 30, 2024. Total assets increased $100.0 million or 5.0 percent from the prior year, with the majority of the increase derived from a $73.4 million or 8.2 percent increase in total cash and investments. The remaining increase in assets is attributable to increases in (i) prepaid expenses and other current assets of $8.5 million associated with a reclassification of properties held for sale of $8.2 million from land, buildings, and equipment, net; (ii) land, buildings, and equipment, net, of $8.0 million, representing additions net of disposals, depreciation, and the aforementioned reclassification; and (iii) right-of-use assets associated with operating leases of $10.2 million. The university has continued to strengthen its financial resources with sustained growth in total cash and investments. At $967.4 million at June 30, 2024, the total has more than doubled over the last five years as reflected in the chart on the adjacent page. Contributing to the increase are net proceeds received from bond issuances in fiscal 2020 ($12.9 million) and fiscal 2022 ($148.6 million). Unspent bond proceeds are anticipated to be utilized for future capital projects spanning multiple years. Salaries, wages, and employee benefits 55% Supplies and services 18% Space and occupancy 10% Other 8% Interest 3% Depreciation and amortization 6% $797 million FY 2024 COMPOSITION OF EXPENSES 5
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