FY22 financial report print.indd

November 11, 2022 November 11, 2022

The Honorable Glenn Youngkin Governor of Virginia The Honorable Glenn Youngkin, Governor of Virginia Joint Legislative Audit and Review Commission Board of Visitors, Virginia Polytechnic Institute and State University

INDEPENDENT AUDITOR’S REPORT

Joint Legislative Audit and Review Commission Rep rt on the Audit of the Financial Statements Opinions

www.apa.virginia.gov | (804) 225-3350 | reports@apa.virginia.gov Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an udit conducted in accordance with GAAS and Government Auditing Standards will always detect a material mis statement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may Board of Visitors Virginia Polytechnic Institute and State University We have audited the financial statements of the business-type activities and discretely presented component unit of Virginia Polytechnic Institute and State University (Virginia Tech), a component unit of the Commonwealth of Virginia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the University’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of a othe auditor, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and discretely presented component unit of Virginia Tech as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the discretely presented component unit of the University, which is discussed in Notes 1 and 26. Those financial statements were audited by another auditor whose report thereon have been furnished to us, and our opinions, insofar as it relates to the amounts included for the component unit of the University, is based solely on the report of the other auditor. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the University and to meet our other ethical responsibilities, in accordance with the relevant ethical require ments relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial stateme ts of the component unit of t e University that were audited by a othe auditor upon whos report we are relying were audited in accordance with auditing standards generally accepted in the United States of America, but not in accordance with Government Auditing Standards. Emphasis of Matter Change in Accounting Principle As discussed in Notes 1 and 15 of the accompanying financial statements, in fiscal year 2022 Virginia Tech implemented Governmental Accounting Standards Board Statement (GASB) No. 87 Leases, related to accounting and financial reporting for lease liabilities and right-to-use lease assets. Our opin ions are not modified with respect to this matter. Other Matters R port on Summarized C parative Information We have previously audited the University’s 2021 financial stateme ts and we expressed n unmodified audit opinion n the resp ctive financial statements in our report dated November 5, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2021, is consistent, in all material respects, with the audited financial statements from which it has been derived, except where revised due to the implementation of GASB Statement No. 87 Leases, as discussed in Note 1. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepte in the United States f America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair pre sentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the University’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements INDEPENDENT AUDITOR’S REPORT Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the business-type activities and discretely presented component unit of Virginia Polytechnic Institute and State University (Virginia Tech), a component unit of the Commonwealth of Virginia, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the U niversity’s b asic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of another auditor, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and discretely presented component unit of Virginia Tech as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the discretely presented component unit of the University, which is discussed in Notes 1 and 26. Those financial statements were audited by another auditor whose report thereon have been furnished to us, and our opinions, insofar as it relates to the amounts included for the component unit of the University, is based solely on the report of the other auditor.

www.apa.virginia.gov | (804) 225-3350 | reports@apa.virginia.gov