Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

Statement of Cash Flows The Statement of Cash Flows presents detailed information about the cash activity of the university during the year. Cash flows from operating activities will always be different from the operating loss on the Statement of Revenues, Expenses, and Changes in Net Position (SRECNP). This difference occurs because the SRECNP is prepared on the accrual basis of accounting and includes noncash items, such as depreciation expenses, whereas the Statement of Cash Flows presents cash inflows and outflows without regard to accrual items. The Statement of Cash Flows should help readers assess the ability of an institution to generate sufficient cash flows to meet its obligations. The statement is divided into five sections. The first section, cash flows from operating activities, deals with operating cash flows and shows net cash used by operating activities of the university. The cash flows from noncapital financing activities section reflects cash received and disbursed for purposes other than operating, investing, and capital financing. GASB requires gen eral appropriations from the commonwealth and noncapital gifts be shown as cash flows from noncapital financing activities. Cash flows from capital and related financing activities presents cash used for the acquisition and construction of capital and related items. Plant funds and related long-term debt activities (except depreciation and amortization) are included in cash flows from capital financing activities. Cash flows from investing activities reflect the cash flows generated from investments which include purchases, proceeds, and interest. The last section reconciles the operating income or loss reflected on the Statement of Revenues, Expenses, and Changes in Net Position for fiscal year 2025 to net cash used by operating activities. Net cash used by operating activities was $357.1 million, a $76.6 million increase from the prior year. Total cash inflows from operating activities

increased by $57.3 million with the largest inflow increases from grants and contracts ($32.6 million), auxiliary enterprise charges ($26.8 million), and tuition and fees ($6.3 million). Total cash outflows grew by $133.8 million with the major increases in uses of cash being payments to employees and fringe benefits ($86.9 million) and operating expenses ($78.4 million) reflect ing the rising cost of providing a high-quality education to the student body. Operating activity uses of cash significantly exceeded operating activity sources of cash due to the classification of state appropriations ($455.8 million) and gifts ($118.2 million) as noncapital financial activities. Net cash flows provided by noncapital financing activities increased by $71.6 million. This increase was due to a rise in state appropriations of $52.6 million and an increase of $12.0 million in gifts drawn from the foundation. Cash inflows from federal student financial aid (Pell) also increased by $6.7 million as more funds were provided to students. There was also a slight increase in non-operating grants and contracts of $0.3 million. Cash used by capital financing activities decreased by $61.3 million. Pay ments for principal and interest related to capital debt grew by $4.7 million. Cash used for the acquisition and construction of capital assets decreased by $155.8 million and gifts for capital assets decreased by $85.8 million as the university finished construction on the academic building located in northern Virginia. These uses of cash were offset by increases in capital appropriations of $12.1 million and an increase in payments on short-term financing of $0.1 million. Additionally, the proceeds from the sale of capital assets declined by $16.1 million. Net cash provided by investing activities decreased by $5.4 million as the investment arena slowed as interest rates receded slightly.

Summary of Cash Flows

Summary of Cash Flows For the years ended June 30, 2025 and 2024 (all dollars in thousands)

2025

2024

Change

Amount

Percent

(restated)

Net cash used by operating activities Net cash provided by noncapital activities

$

(357.1) $

(280.5) $

(76.6 ) 71.6 61.3 (5.4) 50.9

27.3 % 13.3 % 21.2 % (12.9)% 620.7 % 2.3 % 16.2 %

608.1 (228.2)

536.5 (289.5)

Net cash provided (used) by capital and related financing activities Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of year

36.3 59.1 364.7 423.8

41.7

8.2

356.5 364.7

8.2 59.1

$

$

$

Cash and cash equivalents - end of year

2025

2025

2024

3,500 3,000 2,500 2,000 1,500 1,000 500

3,500 3,000 2,500 2,000 1,500 1,000 500

Sources Uses

Operating activities

Noncapital activities

Capital and related financing activities

Investing activities

Sources Uses Sources Uses

(The graphs above demonstrate the relationship between sources and uses of cash. The graph on the left shows activity for fiscal year 2025 only, grouped by related sources and uses of cash, while the graph on the right displays that same activity for fiscal years 2025 and 2024 in a stacked format.)

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