Management's Discussion and Analysis, continued

June 30, 2014

In the tables below, expenses have been categorized into designated or non-designated spending categories. The designated spending category includes funds expended by function from contracts and grants, land grant, auxiliary and depreciation. These funds must be expended for the purposes for which the funds were received or budgeted. This category also includes funds for student aid. All other spending is categorized as non-designated spending. Total spending for all functions in the non-designated category increased by approximately $3.5 million in 2014, primarily due to the increase in recognizing bad debt expense in the institutional support category.