2016_SUNY_Optometry_PRR

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Management’s Discussion and Analysis (Unaudited)

Federal and State Nonoperating Grants Major scholarships and grants received include the State Tuition Assistance Program of $213 million and $197 million and the federal Pell Program of $290 million and $279 million during fiscal years 2015 and 2014, respectively. Other Nonoperating Revenues Other nonoperating revenues decreased $151 million and increased $144 million in 2015 and 2014, respectively. The decrease in 2015 was primarily due to a decrease in investment return and capital gifts and grants. The increase in 2014 was primarily due to increases in gifts, investment income and gains, and capital gifts and grants. 2013 Instruction $ 2,469,683 2,315,342 2,201,559 Research 728,789 765,033 817,282 Public service 302,311 305,970 303,248 Support services 2,616,099 2,534,416 2,426,112 Scholarships and fellowships 237,921 214,144 210,004 Hospitals and clinics 2,690,530 2,708,912 2,673,713 Auxiliary enterprises 621,548 585,908 585,962 Depreciation and amortization 552,555 506,557 469,760 Other nonoperating 462,625 415,926 386,873 Total expenses $ 10,682,061 10,352,208 10,074,513 Expense Overview Expenses (in thousands): 2015 2014

During the 2015 fiscal year, instruction expenses increased $154 million predominately from increases of $84 million in accrued postemployment benefit expenses and $46 million in personal service costs. Research expenses decreased $36 million and $52 million during fiscal years 2015 and 2014, respectively, primarily due to a decline in sponsored program activity. Support services, which include expenses for academic support, student services, institutional support, and operation and maintenance of plant, increased $82 million between fiscal years 2015 and 2014. This increase was mainly due to an increase in accrued postemployment benefit expenses of $63 million as well as an increase in personal service costs of $29 million. Support services increased $108 million between 2014 and 2013. In the State University’s financial statements, scholarships used to satisfy student tuition and fees (residence hall, food service, etc.) are reported as an allowance (offset) to the respective revenue classification up to the amount of the student charges. The amount reported as expense represents amounts provided to the student in excess of State University charges. Expenses at the State University’s hospitals and clinics decreased $18 million in 2015 and increased $35 million during 2014. The decrease during 2015 was mainly due to a decrease in expenses for LICH at UHB. Depreciation and amortization expense recognized in fiscal years 2015 and 2014 totaled $553 million and $507 million, respectively. Other nonoperating expenses were $463 million and $416 million for the years ended June 30, 2015 and 2014, respectively. The increase in nonoperating expenses during fiscal year 2015 was mainly due to an increase in interest expense on capital related debt and an increase in the Research Foundation post-retirement benefit accrual.

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2015 Expenses (in thousands)

Instruction $2,469,683

Support Services $2,616,099

Other Nonoperating $462,625

Public Service $302,311

Scholarships and Fellowships $237,921

Depreciation and Amortization $552,555

Auxiliary Enterprises $621,548

Hospitals and Clinics $2,690,530

Research $728,789