Financial activities are reported as either operating or nonoperating. GASB Statement No. 35 requires state appropriations, gifts, investment income and endowment income to be classified as nonoperating revenues. Accordingly, the University reports an operating loss prior to the addition of nonoperating revenues. The utilization of long-lived capital assets is reflected in the financial statements as depreciation, which amortizes the cost of an asset over its expected useful life. Tuition revenue is reduced by gift scholarships and institutional aid, and is reported net of scholarship allowances in the financial statements. A summarized comparison of the University's revenues, expenses and changes in net assets for the years ended June 30, 2010, 2009 and 2008 is as follows.
Condensed Statement of Revenues, Expenses and Changes in Net Assets
| 2010 | 2009 | 2008 | |
| OPERATING REVENUES | |||
| Student tuition and fees, net | $16,512,333 | $13,328,034 | $12,530,774 |
| Grants and contracts | 14,589,783 | 10,389,449 | 8,733,732 |
| Federal appropriations | 6,507,463 | 4,977,599 | 6,246,011 |
| Auxiliary enterprises | 6,745,546 | 6,356,430 | 5,616,851 |
| Other operating revenue | 1,006,390 | 909,262 | 1,170,030 |
| Total operating revenues | 45,361,515 | 35,960,774 | 34,297,398 |
| OPERATING EXPENSES | |||
| Educational and general | 61,873,552 | 57,103,977 | 54,424,317 |
| Auxiliary enterprises | 5,764,044 | 5,798,861 | 5,038,505 |
| Total operating expenses | 67,637,596 | 62,902,838 | 59,462,822 |
| OPERATING LOSS | (22,276,081) | (26,942,064) | (25,165,424) |
| NONOPERATING REVENUES (EXPENSES) | |||
| State appropriations | 24,630,377 | 26,435,199 | 27,525,700 |
| Federal grants and contracts | 6,556,989 | 4,300,478 | 3,917,011 |
| Gifts and grants | 613,057 | 548,970 | 721,085 |
| Investment income (loss) | 1,158,756 | (1,068,877) | 286,709 |
| Interest on capital asset – related debt | (483,085) | (535,089) | (474,807) |
| Other | (697,500) | (1,966,265) | (1,364,165) |
| Total non-operating revenues | 31,778,594 | 27,714,416 | 30,611,533 |
| Income before other revenues, expenses, gains (losses) | 9,502,513 | 772,352 | 5,446,109 |
| Endowment Gifts | - | - | 60,666 |
| Capital appropriations | 1,760,427 | - | 8,273,393 |
| Total net increase in net assets | 11,262,940 | 772,352 | 13,780,168 |
| Net assets, beginning of year | 94,133,288 | 93,360,936 | 79,580,768 |
| Net assets, end of year | $105,396,228 | $94,133,288 | $93,360,936 |
6.