FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022

Systems Ltd. in the development of a new 5G and NextG test bed at the Virginia Tech Research Center in Arlington. • Development of Virginia Tech’s Innovation Campus in Alexan dria accelerated as construction began in September on the Ac ademic 1 Building. Slated for completion in 2024, the Academic 1 Building will provide instruction, research, office, and sup port spaces for the graduate programs in Computer Science and Computer Engineering. As a critical element of the state’s Tech Talent Investment Program, the Innovation Campus will be a collaborative hub of project-based learning, bringing together public and private sector partners to develop frontier technol ogies and accelerate growth of the commonwealth’s science and technology ecosystem. The university also implemented a multi-faceted strategy to bolster enrollment and degree pro duction in Tech Talent programs, including an initiative with Boeing to establish a workforce development center to guide military veterans into careers in technology related fields. • Expansion of the bio-sciences research ecosystem in the Roa

The university’s portfolio of active capital projects has a combined total budget of $1.2 billion for FY22 with over $507 million of cu mulative expenditures on 27 capital projects. Major capital projects underway during the fiscal year included i) a new residence hall to house approximately 300 students; ii) a new, donor funded home for the Corps of Cadets and Reserve Officers’ Training Corp (ROTC) programs; iii) improvements to a campus dining facility and spirit plaza; iv) the design of a new business building; v) a new academic building that will house a cutting-edge data and decision sciences program; and vi) a newmulti-program facility that will support dou bling the enrollment of the building construction program, increas ing dining capacity, and increasing modern instruction space. These projects are critical to support the transdisciplinary teaching and re search programs to advance the strategic mission of the university. The university reported a debt ratio of 3.46 percent for FY22 with a long long-term debt liability of $549 million. The university’s for ward-looking capital outlay planning and debt allocation planning processes ensure capacity will be available for high priority projects

in the future while complying with the university’s performance measures of maintaining the debt program within six percent debt ratio and maintaining a credit rating of AA- or better. The university currently maintains credit ratings of Aa1 from Moody’s Investors Service Inc., and AA from S&P Invest ment Services. The university contin ues to strive to deliberately manage re sources and maintain an effective debt ratio and credit rating while supporting the continued growth of the universi ty’s capital program to achieve long term goals and aspirations.

noke-Blacksburg region contin ued with the October opening of the Fralin Biomedical Research Institute expansion at Virginia Tech Carilion. The expansion will enable the institute to double its workforce by 2027 and provide a catalyst for additional bio- and life-science spinoff company cre ation. In addition, the Virginia Tech Carilion School of Medicine increased the number of students for each class from 42 to 49 amidst growing demand for its collabo

“While maintaining financial stability in an unpredictable environment remained an overriding priority, Virginia Tech, in partnership with the commonwealth, also continued to expand opportunities for learning, research, and discovery.”

rative, research-based learning, and clinical experiences. This emerging core of bioscience research and discovery will posi tion the region to leverage the advantages of agglomeration and further attract human capital. Each of these critical research initiatives contribute to the com monwealth’s ongoing transition to an innovation-driven economy and boost its overall competitiveness. Virginia Tech is ranked in the top 50 U.S. research universities according to the most recent annual National Science Foundation research expenditures report. Virginia Tech reported more than $542 million in research expen ditures in fiscal year 2021 (the most recent data available). The uni versity has also been deliberate in assisting Virginia Tech research ers identify opportunities for the commercialization of intellectual property. Working with Link+License+Launch, Virginia Tech In tellectual Properties initiated a third round of funding and support services for promising projects with the potential for broad societal and economic impact. During FY22, the university updated its six-year Capital Outlay Plan for the 2022 – 2028 period, which was subsequently approved by the VT Board of Visitors for submission in the state’s capital out lay budget program. The forward-looking plan includes 20 projects that total $1.18 billion with a balanced approach to new construc tion and renovations to address the university’s strategic plans. The 2022 General Assembly session resulted in Virginia Tech capturing $223.4 million in general fund support to construct a state-of-the art engineering building (Mitchell Hall) that is expected to open by fall 2027 as well as supplemental funding of $7.3 million to ensure accessible pathway service in the North Academic District.

Guided by its culture of continuous improvement, the university of ficially launched an IT Transformation initiative in February 2022 to improve alignment of core IT organizations, processes, and services, mitigate cybersecurity related vulnerabilities, and further foster innovation and efficiency across the university. The multi-year IT Transformation initiative will leverage existing relationships with academic, administrative, and research units to meet the evolving and strategic needs of their diverse stakeholders. This collaborative approach will position the university not only to reduce complexity and inefficiency in critical IT services, but also to enhance data-driv en decision-making and improve the user experience for students, faculty. More generally, the university continues to make progress in meet ing the metrics identified in its Advancing Beyond Boundaries strate gic plan. Virginia Tech’s resilient spirit and Ut Prosim (That I May Serve) motto, bolstered by its strong financial position, continue to propel the university towards achievement of its tripartite mission of discovery, learning, and engagement.

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