FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022

($3.8 million), federal student loan program contributions refundable ($2.1 million) and other liabilities ($1.6 million) The increase in total assets along with the decrease in total liabilities is reflected in the year-over-year growth of the university’s net position of $308.8 million (17.0%). Net position in the category of net investment in capital assets increased by $183.1 million, reflecting the university’s contin ued investment in new facilities and equipment supporting the university’s mission. Unrestricted net position rose by $118.3 million (281.0%) due to the effect of the OPEB and VRS Pension net liability decreases as well as the prudent management of fiscal resources.

growth of $17.9 million in accounts payable, largely due to payables related to capital construction and auxiliary enterprises. Unearned revenue grew by $14.4 million predominantly in the grants and contracts area. Accrued compensated absences rose slightly ($1.9 million) as did the current portion of long-term debt and leases payable ($1.3 million), while funds held in custody for others decreased by $1.1 million. Noncurrent liabilities declined by $304.7 million. The largest decreases were in the actuarially determined pension liability ($234.4 million), OPEB liability ($31.2 mil lion), and the liabilities related to debt and long-term leases ($31.6 million). Additionally there were smaller decreases in accrued compensated absences

Summary of Capital Project Funding

Funding for Authorized Current and Future Capital Projects As of June 30, 2022 (all dollars in millions)

University Debt Issued During Fiscal Year 2022

University Debt To

Cash Basis

State

Other

Be Issued After June 30, 2022

Total

Project-To-Date

Funds (2)

Funding

Expenses

Funds (1)

Current education and general Current auxiliary enterprise

$

417.9 $

51.9 $

- $

229.3 $

699.1 $

213.4

-

19.1 71.0 23.0 31.0 8.0

- - - - -

40.0

59.1

30.4

Total current

417.9

269.3

758.2

243.8

Future education and general Future auxiliary enterprise

3.1

11.0 47.0 58.0

22.1 70.0 92.1

2.8 5.6 8.4

-

Total future

3.1

$

421.0 $

102.0 $

- $

327.3 $

850.3 $

252.2

Total authorized

(1) Includes the general fund, capital appropriations, and the general obligation bonds of the Commonwealth of Virginia. (2) Includes private gifts, auxiliary surpluses, student fees, and other customer revenues.

construction contractors. Proceeds from the sale of commercial paper were used to provide temporary funding for some projects under construction. The majority of the temporary financing will be replaced with the issuance of long-term bonds and notes. Total liabilities related to debt and long-term leases experienced a net decrease of $30.3 million during fiscal year 2022. This decrease was due to the principle repayment of bonds and notes payable, and long-term leases. See Notes 12, 13 and 15 of the Notes to Financial Statements for more details. The educational and general (E&G) portion of the university’s capital outlay program includes nine projects currently under construction. These projects include construction of an academic building for the Innovation Campus in Alexandria ($302.1 million), construction of a new undergrad uate science lab building ($90.4 million), construction of Hitt Hall ($85.0 million), construction of a data and decision sciences building ($79.0 million), construction of a corps leadership and military science building ($52.0 million), and the first of two phases to renew existing livestock and poultry facilities ($25.3 million). In addition to the capital projects underway, there were several new construction and renovation projects approved for instructional and research facilities. The new capital projects include the planning phases for the new Mitchell Hall to replace Randolph Hall ($11.0 million) and construction of a new building for the Pamplin College of Business ($8.0 million). The Commonwealth of Virginia will provide partial funding for several of these E&G projects. In addition to funding received from the commonwealth, the projects may also be funded from a combination of private gifts, student fees, other customer revenues, and debt financing. The auxiliary enterprises portion of the university’s capital outlay program represents two projects currently under construction. These projects include the construction of a new residence hall in the upper quad area of campus ($42.0 million) and refurbishment of the first floor of Dietrick Hall ($9.1 million). Future capital projects include improvements to facilities

Capital Asset and Debt Administration One of the critical factors in ensuring the quality of the university’s academic, research, and residential life functions is the development and renewal of its capital assets. The university continues to maintain and up grade current structures, as well as pursue opportunities for additional fa cilities. Investment in new structures and the upgrade of current structures serve to enrich high-quality instructional programs, residential lifestyles, and research activities. Note 7 of the Notes to Financial Statements describes the university’s signifi cant investment in depreciable capital assets, with gross additions of $283.7 million during fiscal year 2022. Major projects included the completion of a new residence hall in the Creativity and Innovation District ($99.4 million) and the renovation and expansion of Holden Hall ($66.4 million). Ongoing investments in instructional, research, and computer equipment totaled $56.2 million. Depreciation and amortization expense related to capital assets was $135.8 million with net retirement of depreciable assets of $3.4 million. The net increase in depreciable capital assets for this period was $144.6 million. The net increase in nondepreciable capital assets ($22.6 million) was primarily due to more construction in progress expenses during the current year for major building projects to be com pleted after fiscal year 2022. The major projects remaining in the con struction-in-progress category include construction of the new Innovation Campus in Alexandria ($65.7 million), construction of a new data and de cision sciences building ($53.3 million), upgrades to the university’s chilled water infrastructure ($39.8 million), construction of a new corps leader ship and military science building ($25.4 million), the first of two phases to renew existing livestock and poultry facilities ($18.4 million), and other ongoing capital improvements and renovations throughout the university ($97.3 million). In addition, $9.2 million was withheld as retainage payable on major projects under construction. This retainage amount will be moved to the building asset category once final payments are made to the

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Management's Discussion and Analysis