FY22 financial report print.indd

Virginia Tech Financial Report 2021-2022 Management’s Responsibility for Financial Reporting & Internal Controls

The information in this Annual Financial Report, including the accompanying basic financial state ments, notes, management’s discussion and analysis, and other information is the responsibility of Virginia Tech executive management. Responsibility for the accuracy of the financial information and fairness of its presentation, including all disclosures, rests with the management of the university. Management believes the information is accurate in all material respects and fairly presents the univer sity’s revenues, expenses, and changes in net position as well as its overall financial condition. This re port was prepared in accordance with generally accepted accounting principles for public colleges and universities in the United States of America as prescribed by the Governmental Accounting Standards Board. Management is responsible for the objectivity and integrity of all representations herein. The Annual Financial Report includes all disclosures necessary for the reader of this report to gain a broad understanding of the university’s operations for the year ended June 30, 2022. The administration is responsible for establishing and maintaining the university’s system of internal controls. Key elements of the university’s system of internal controls include: careful selection and training of administrative personnel; organizational structure that provides appropriate division of duties; thorough and continuous monitoring, control, and reporting of operating budgets versus actual operating results; well communicated written policies and procedures; annual self-assessments led by the Office of the University Controller; a growing management services segment; and an extensive internal audit function. Although there are inherent limitations to the effectiveness of any system of accounting controls, management believes that the university’s system provides reasonable, but not absolute, assurances that assets are safeguarded from unauthorized use or disposition, and accounting records are sufficiently reliable to permit preparation of financial statements and appropriate account ability for assets and liabilities. The Virginia Tech Board of Visitors has created two committees which review and monitor the university’s financial reporting and accounting practices. The Finance and Resource Management Committee meets with university financial officers and external independent auditors annually to review the Annual Financial Report, results of audit examinations, and quality of financial reporting. The Compliance, Audit, and Risk Committee periodically meets with internal auditors and university financial officers. These meetings include a review of the scope, quality, and results of the internal audit program, as well as a review of issues related to internal controls. The Auditor of Public Accounts (APA), the office of the Commonwealth of Virginia’s auditors, has ex amined these annual financial statements and the report thereon appears on the facing page. The APA examination includes a study and evaluation of the university’s system of internal controls, financial systems, policies, and procedures, resulting in the issuance of a management letter describing various issues considered worthy of management’s attention. The university has implemented policies and procedures for the adequate and timely resolution of such issues. No material weaknesses were found on internal control matters by the APA for the fiscal year ended June 30, 2022.

Christopher H. Kiwus Interim Senior Vice President and Chief Business Officer


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