FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022

providing student wellness services ($70.0 million). Since auxiliaries are required to be self-supporting, no state general funds or capital appropri ations are provided for these projects. These projects will be funded by a combination of private gifts, student fees, other customer revenues, and debt financing. Virginia Tech had a total authorization of $850.3 million in capital building projects as of June 30, 2022, requiring approximately $327.3 million in additional debt financing. Capital projects in progress carried commitments to construction contractors, architects, and engineers totaling $398.5 million at June 30, 2022. These obligations are for future effort and as such have not been accrued as expenses or liabilities on the university’s financial statements. The majority of the financial commit ment is attributed to the construction of an academic building for the Innovation Campus in Alexandria ($196.6 million), construction of a new undergraduate science laboratory building ($67.1 million), construction

of Hitt Hall ($58.0 million), construction of a new upper quad residence hall ($19.3 million), construction of a corps leadership and military science building ($17.4 million), construction of Mitchell Hall to replace Randolph Hall ($14.9 million), and the construction of a data and decision sciences building ($13.6 million). These commitments represent only a portion of the university’s capital projects currently under construction or authorized by the commonwealth. The university’s bond and commercial paper ratings shown in the table below reflect strong student demand, balanced operating performance, and adequate reserves to address unforeseen expenses. Commercial Bonds Paper Moody’s Investors Service Inc. Aa1 P-1 S&P Global Ratings AA A-1+

Eggleston Hall as seen from Squires Student Center. Photo by Luke Hayes for Virginia Tech.

Summary of Revenues, Expenses, and Changes in Net Posi�on

Revenues, Expenses, and Changes in Net Position For the years ending June 30, 2022 and 2021 (all dollars in millions)

2022

2021

Change

Amount

Percent

(restated)

Operating revenues Operating expenses

$

1,311.6 $

1,162.3 $

149.3 129.2

12.8 % 8.6 % (5.8)% (15.8)% (36.0)% 53.3 %

1,638.7

1,509.5

Operating loss

(327.1)

(347.2)

20.1

Non-operating revenues and expenses

436.2 109.1 199.7 308.8

517.8 170.6 130.3 300.9

(81.6) (61.5)

Income before other revenues, expenses, gains, or losses

Other revenues, expenses, gains or losses

69.4

Increase in net position

7.9

2.6 %

Net position - beginning of year

1,815.1

1,514.2

300.9 308.8

19.9 % 17.0 %

$

2,123.9 $

1,815.1 $

Net position - end of year

10

Management's Discussion and Analysis