FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022

Summary of Cash Flows

Summary of Cash Flows For the years ended June 30, 2022 and 2021

2022

2021

Change

Amount

Percent

(all dollars in millions)

(restated)

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

$

(256.8) $

(213.3) $

(43.5)

(20.4)%

483.2

446.1

37.1

8.3 %

Net cash used by capital and related financing activities

(113.8) (92.3)

(95.3) (37.2)

(18.5) (55.1) (80.0)

(19.4)% (148.1)%

Net cash used by investing activities

Net increase (decrease) in cash and cash equivalents

20.3

100.3 200.7

79.8 % 50.0 % 6.7 %

Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year

301.0

100.3

$

321.3 $

301.0 $

20.3

2021 (restated)

2022

2022

4,000

4,000

Sources

3,500

3,500

Uses

3,000

3,000

2,500

2,500

2,000

2,000

1,500

1,500

1,000

1,000

500

500

Sources

Uses

Sources

Uses

Operating activities

Noncapital activities

Capital and related financing activities

Investing activities

The graphs above demonstrate the relationship between sources and uses of cash. The graph on the left shows activity for fiscal year 2022 only, grouped by related sources and uses of cash, while the graph on the right displays that same activity for fiscal years 2022 and 2021 in a stacked format.

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 necessary 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 general 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 amortiza tion), as well as gifts to endowments, are included in cash flows from capi tal 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 2022 to net cash used by operating activities.

Net cash used by operating activities was $256.8 million, a $43.5 million increase from the prior year. Total cash inflows for operating activities increased by $151.2 million with the largest inflow increases in auxilia ry enterprise charges ($77.5 million) and inflows from tuition and fees ($35.8 million). Total cash outflows grew by $194.7 million with the major increases in uses of cash being payments to employees and fringe benefits ($101.5 million) and operating expenses ($79.4 million) as the university returned to normal operations after the COVID-19 pandemic. Operating activity uses of cash significantly exceeded operating activity sources of cash due to classification of state appropriations ($326.4 million) and gifts ($78.4 million) as noncapital financial activities. Net cash flows from noncapital financing activities increased by $37.1 mil lion. This increase is due to a rise in state appropriations of $14.6 million and COVID-19 relief funds of $11.4 million to provide resources to the university to assist with the effects of the pandemic on the institution and to provide emergency hardship support to students due the disruption of on-campus operations. Also, gifts drawn fromVTF grew by $9.4 million. Cash used by capital financing activities increased by $18.5 million. Pro ceeds from the issuance of capital debt decreased by $92.5 million due to no new debt being issued in the current year. Cash from proceeds of short term financing increased by $57.8 million due to the issuance of additional commercial paper to temporarily fund capital projects. Cash inflows from gifts for capital assets increased by $38.7 million as a result of more projects being funded by VCBA 21st funding and funding from the VTF. Net cash used by investing activities increased $55.1 million as activity for the investment areas slowed due to downturns in the markets compared to the previous year.

13

Management's Discussion and Analysis