Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

Statement of Net Position The Statement of Net Position (SNP) presents the university’s assets, liabilities, and net position as of the end of the fiscal year. The purpose of this statement is to present a snapshot of the university’s financial position to readers of the financial statements. The data presented aids readers in determining the assets available to continue operations of the university. It also allows readers to see what the university owes to vendors, investors, and lending institutions. Finally, the SNP provides a picture of the university’s net position and the restrictions for expenditure of the components of net position. Sustained increases in net position over time are one indicator of the financial health of the organization. The university’s net position is classified as follows: Net investment in capital assets – Net investment in capital assets represents the university’s total investment in capital assets, net of accumulated depreci ation, amortization, and outstanding debt obligations related to those capital assets. Debt incurred, but not yet expended for capital assets, is not included as a component of net investment in capital assets. Restricted component of net position, nonexpendable – The nonexpendable cat egory of the restricted component of net position consists of endowment and similar type funds where donors or other outside sources have stipulated, as a condition of the gift instrument, the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income to be expended or added to principal. The university’s nonexpendable endowments of $15.2 million are included in its column on the SNP. Restricted component of net position, expendable – The expendable category of the restricted component of net position includes resources the university is legally or contractually obligated to expend, with restrictions imposed by external third parties. This category partially consists of quasi-endowments totaling $60.1 million. The investment of quasi-endowments is managed by VTF. Unrestricted component of net position – The unrestricted component of net position represents resources used for transactions relating to academic departments and general operations of the university and may be used at the discretion of the university’s board of visitors to meet current expenses for any lawful purpose in support of the university’s primary missions of instruction, research, and outreach. These resources are derived from student tuition and fees, state appropriations, recoveries of facilities and administrative (indirect) costs, and sales and services of auxiliary enterprises and educational depart ments. The auxiliary enterprises are self-supporting entities that provide

services for students, faculty, and staff. Examples of the university’s auxiliaries are intercollegiate athletics and student residential and dining programs. Total university assets increased by $412.9 million or 9.1% during the fiscal year 2025, bringing the total to $4,925.6 million at year-end. Current assets increased by $41.2 million. The growth is the result of increases in accounts and contributions receivable of $27.9 million largely in grants and contracts and auxiliary and other operating activities, an increase in the amount due from Commonwealth of Virginia of $7.7 million for appropriations related to the School of Medicine, a rise of $7.7 million in prepaid expenses, and an increase of $1.3 million in inventories. These upturns were offset by a slight decline in cash and cash equivalents of $3.4 million. Noncurrent assets grew by $371.7 million. Depreciable capital assets, net, increased by $373.1 million reflecting the capitalization of completed university research, instructional, and auxiliary facilities discussed in detail in the following section, Capital Asset and Debt Administration . Noncurrent cash and cash equivalents grew by $62.7 million. Due from the Commonwealth of Virginia grew by $210.3 million due to an increase in appropriations receivable for capital projects. Long-term investments rose $56.9 million while nondepreciable capital assets declined by $324.3 million due to the completion and capitalization of the Academic Building One in Alexandria, Virginia, as well as several smaller capital and renovation projects on the university’s main campus. Total university liabilities declined by $62.3 million or 3.9% during fiscal year 2025. The current liabilities category increased by $12.0 million. The change in current liabilities was largely due to an increase of $9.5 million in compensated absences, attributable to a change in university leave programs during fiscal year 2024 that increased the amount earned annually for certain employee categories as well as added additional holiday time for administra tive and professional faculty. There was also a rise of $4.6 million in funds held in custody for others with smaller increases in the current portion of long-term debt, unearned revenue, and other postemployment benefits. Noncurrent liabilities fell by $74.3 million. The largest decreases in this area were for long-term debt of $42.4 million, due to normal debt payments, and a long-term lease payable decrease of $18.9 million, due to the normal lease payments, as well as decreases in the actuarially determined pension liability ($10.3 million) and other postemployment benefits ($11.5 million). These declines were offset by increases in the following areas: accrued compensated absences of $ 4.7 million, subscription-based IT arrangements liabilities of $2.5 million, and other liabilities of $1.7 million.

Summary of Assets, Liabilities, and Net Position

Assets, Liabilities, and Net Position For the years ended June 30, 2025 and 2024 (all dollars in millions) 2025

2025

2024

5,000

2024

Change

Amount Percent

(restated)

4,000

Current assets Capital assets, net*

$

500.2 $

459.0 $ 41.2

9.0 % 1.7 % 27.7 % 9.1 %

2,936.6 1,488.8 4,925.6

2,887.9 1,165.8 4,512.7

48.7 323.0 412.9

Other assets

3,000

Total assets

Deferred outflow of resources

132.7

118.5

14.2

12.0 %

2,000

Current liabilities Noncurrent liabilities

391.9 1,129.6 1,521.5

379.9 1,203.9 1,583.8

12.0

3.2 %

(74.3) (6.2)% (62.3) (3.9)%

Total liabilities

1,000

Deferred inflow of resources

78.9

79.6

(0.7) (0.9)%

Invested in capital assets, net

2,210.7 659.4 587.8

2,112.0 443.8 412.0

98.7 215.6 175.8

4.7 % 48.6 % 42.7 % 16.5 %

Restricted Unrestricted

Liabilities, Deferred Inflows and Net Position

Assets and

Liabilities, Deferred Inflows and Net Position

Assets and

Deferred Outflows

Deferred Outflows

$ 3,457.9 $ 2,967.8 $ 490.1

Total net position

* includes long-term leases and SBITAs

12