FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022

underrepresented minority or underserved populations; a 22.6 percent increase from fall 2017. The university also enrolled 1,539 first generation college students. At the graduate level, Virginia Tech saw growth of over 500 students compared to the prior year, resulting in total graduate enroll ment of 6,846. Achievement of the university’s enrollment goals provides a stable and growing source of revenue, allowing the university to realize goals outlined in its Advancing Beyond Boundaries strategic plan. In order to enhance its competitiveness with both in-state and out-of-state peer institutions, Virginia Tech continues to allocate critical resources to the university’s strategic objectives through a rigorous budget process. New initiatives are thoroughly evaluated to ensure their alignment with the university’s mission and fiscal officers are required to annually identify cost-savings strategies. Moreover, internal benchmarking continues to demonstrate that the university remains an administratively lean organi zation. The cultivation of cost-conscious culture which values streamlined business processes and the effective and scalable delivery of services has enabled the university to outperform peer institutions across a variety of administrative cost and efficiency metrics. Systematic measures to control the total cost of education provide a solid fiscal foundation for achieving the university’s historical commitment to value, access, and affordability. To manage its exposure to risk, the university’s investment policy— es tablished by the board of visitors and monitored by the board’s Finance and Resource Management Committee — requires that its public funds

be invested in accordance with the Investment of Public Funds Act (Section 2.2-4500 through 2.2-4516, et seq., Code of Virginia ). The university has limited its investment in securities outside the scope of the Investment in Public Funds Act to restricted gift funds, local funds, and nongeneral fund reserves and balances designated by management as quasi-endowments. These funds are invested in the foundation’s consolidated endowment fund and managed in accordance with the provisions of the Uniform Prudent Management of Institutional Funds Act (Section 64.2-1100, et seq., Code of Virginia ). At the end of the fiscal year, the value of the university’s quasi-endowments invested in the foundation totaled $513.6 million, an increase of $12.8 million over the preceding year. As the COVID-19 pandemic and its negative spillovers recede, emerging risks, including upward pressures on prices, accompanying interest rate hikes, and geo-political uncertainty are projected to subdue economic growth in the near term. With robust student demand, record-breaking philanthropy, growing endowments, a diversified portfolio of research funding, and increased assets underpinning the university’s strong financial position, Virginia Tech remains resilient and well-positioned to effectively respond to a changing environment. Moreover, the university’s quality debt ratings from Moody’s Investors Service Inc. (Aa1) and S&P Global Ratings (AA) enable the university to obtain funding for capital projects with advantageous terms. With its thriving and engaged community of students, faculty, and staff, Virginia Tech’s future remains bright.

Doctoral degree recipients receive their hoods during the May 2022 commencement ceremony.. Photo by Luke Hayes for Virginia Tech.

Virginia Governor Glenn Youngkin delivers the May 2022 commencement address. Photo by Christina Franusich for Virginia Tech.

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Management's Discussion and Analysis