FY22 financial report print.indd
Virginia Tech Financial Report 2021-2022
2. Related Parties In addition to the component unit discussed in Note 1, Virginia Tech also has related parties that were not considered significant. These financial statements do not include the assets, liabilities, and net position of the related parties that support university programs. The related parties of the university are: Virginia Tech Services Inc., Virginia Tech Alumni Association, Virginia Tech Athletic Fund Inc., Virginia Tech Intellectual Properties Inc., Virginia Tech Corps of Cadets Alumni Inc., Virginia Tech Applied Research Corporation, Virginia Tech Innovations Corporation, Virginia Tech India Research and Education Forum, and any of the subsid iaries of these corporations. The organizations are related to the university by affiliation agreements. These agreements require an annual audit to be performed by independent auditors. Affiliated organizations that hold no financial assets and certify all financial activities or transactions through the Virginia Tech Foundation Inc. may be exempt from the independent audit requirement. Exemption requirements are met by Virginia Tech Alumni Association, Virginia Tech Athletic Fund Inc., and Virginia Tech Corp of Cadets Alumni Inc. They are therefore not required to have an annual audit. Virginia Tech Services Inc., Virginia Tech Intellectual Properties Inc., Virginia Tech Applied Research Corporation, Virginia Tech Innovations Corporation, and Virginia Tech India Research and Education Forum are required to have an annual audit. Auditors have examined the financial records of these organizations and a copy of their audit reports have been or will be provided to the university. The university presents its financial information on a comparative basis. The basic financial statements include certain prior-year summarized comparative information in total, but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, the prior year information should be read in conjunction with the university’s financial statements for the year ended June 30, 2021, from which the summarized information was derived. Prior reports can be found at www.controller.vt.edu/resources/financialreporting.html. cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Comparative Data
Scholarship Allowance Student tuition and fees, certain auxiliary revenues, and student financial assistance expenses are reported net of scholarship allowance in the State ment of Revenues, Expenses, and Changes in Net Position . Scholarship allow ance is the difference between the stated charge for goods and services pro vided by the university and the amount paid by students and third parties making payments on the students’ behalf. For the fiscal year ended June 30, 2022, the scholarship allowance for student tuition and fee revenue and auxiliary enterprise revenue totaled $147,361,000 and $30,954,000, respec tively. Scholarship allowance to students is reported using the alternative method as prescribed by the National Association of College and Univer sity Business Officers (NACUBO). The alternative method is an algorithm that computes scholarship allowance on a university-wide basis rather than on an individual student basis. Implementation of GASB Statement 87 and Statement 89 In June 2017, GASB issued Statement 87, Leases . The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by gov ernments. The statement requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the agreement. Under this statement a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The university adopted Statement 87 in fiscal year 2022 with an implemen tation of July 1, 2020 and fiscal year ending June 30, 2021 has been restated. The restatement is as follows (all dollars in thousands): Net Position July 1, 2020 $ 1,814,124 Accounts Receivable 1,018 Long Term Lease right to use asset, net 129,727 Depreciable Capital Assets, net (57,722) Non Depreciable Capital Assets (2,609) Accrued Interest Payable (570) Long Term Lease Payable (128,921) Long Term Debt Payable 61,027 Deferred Inflow (1,005) Adjusted Net Position June 30, 2021 $ 1,815,069 In June 2018, GASB issued Statement 89, Accounting for Interest Cost Before the End of a Construction Period . This statement requires that the interest
The 2022 Virginia Tech Corps of Cadets Graduation and Joint Commissioning Ceremony in Burruss Auditorium. Photo by Christina Franusich for Virginia Tech.
Notes to Financial Statements
Made with FlippingBook flipbook maker