Virginia Community College System: Annual Report on the Financial Statements (November 4, 2025)
Summary
A transmittal letter dated November 4, 2025 from William M. Johnson, Vice Chancellor for Finance and Capital Resources, submitting reports of the Virginia Community College System, including the financial report for the year ended June 30, 2025 (unaudited) and a 2025 Workforce Annual Report. The financial report lists the State Board members and a table of contents covering management's discussion and analysis, consolidated financial statements, notes, and individual college financial statements. Its financial highlights state that total net position increased by 10.3%, an overall increase of $159.1 million, and that full-time equivalent student enrollment increased from 89,338 to 93,408. The attachments end with the VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Virginia Community College System: Annual Report on the Financial Statements (November 4, 2025).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-rd763-6ac3c02389/
, SHA-256 9ba5a9b1e94652d26be42eea9375f76908a1e1125ddcba65fb499d437a92a75d.Full text
November 4, 2025
Division of Legislative Automated Services (DLAS)
Old City Hall, Suite 210
101 East Broad Street
Richmond, VA 23219
Attention: Legislative Documents and Reports Processing
As required by Code of Code of Virginia - § 23.1-2908 (B.4.), we respectively submit on
behalf of Dr. David Doré, Chancellor of the Virginia Community College System, the annual report
on the financial statements of the Virginia Community System for the fiscal year ending June 30,
2025. This report was submitted to the Department of Accounts on October 15,2025. The status
of VCCS ongoing capital projects for fiscal year ending June 30,2025. This report was submitted
to Department of General Services on August 11,2025. These reports were submitted to the
respective state entities required by the Code of VA prior to November 1,2025.
Also attached is the “2025 Workforce Annual Report” in accordance with Item 203.D.2. of
the 2025 Appropriations Act. This report was submitted to the staff of House Appropriations and
Senate Finance and Appropriations committees and the Department of Planning and Budget on
November 4, 2024.
If you have questions regarding these reports, please contact me at (804) 819-4912 or
wjohnson@vccs.edu.
Sincerely,
William M. Johnson
Vice Chancellor for Finance and Capital Resources
Attachment
(Electronic Submission Only)
VIRGINIA COMMUNITY
COLLEGE SYSTEM
FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
(UNAUDITED)
Prepared by:
Office of Fiscal Services
Virginia Community College System
300 Arboretum Place, Suite 200
Richmond, Virginia 23236
VCCS Financial Report 2024-2025
STATE BOARD MEMBERS
Michael Wooten, Chair
Mark Hourigan, Vice Chair
David Elmore Jeremy Satterfield
Sasha Gong Christy Thompson
Jeffrey Haley Terri Thompson
Wiley “Bif” Johnson Brett Vassey
Bruce Meyer Joan Wodiska
Anthony “Tony” Miller Michael Zajur
Alethea “AJ” Robinson
CHANCELLOR
David Dore’
Secretary, State Board
OFFICER REPORTING
Gregory T. Lehman
Controller
VCCS Financial Report 2024-2025
TABLE OF CONTENTS
Management’s Discussion and Analysis 1
Consolidated Financial Statements 12
Notes to the Financial Statements 18
Required Supplementary Information 101
Individual College Financial Statements:
Blue Ridge Community College 116
Central Virginia Community College 121
Mountain Gateway Community College 126
Danville Virginia Community College 131
Eastern Shore Community College 136
Germanna Community College 141
J. Sargeant Reynolds Community College 146
Brightpoint Community College 151
Laurel Ridge Community College 156
Mountain Empire Community College 161
New River Community College 166
Northern Virginia Community College 171
Patrick & Henry Community College 176
Paul D. Camp Community College 181
Piedmont Virginia Community College 186
Rappahannock Community College 191
Southside Virginia Community College 196
Southwest Virginia Community College 201
Virginia Peninsula Community College 206
Tidewater Community College 211
Virginia Highlands Community College 216
Virginia Western Community College 221
Wytheville Community College 226
System Office ____ 231
Shared Services Center _236
VIRGINIA COMMUNITY COLLEGE SYSTEM
Management’s Discussion and Analysis
(Unaudited)
In 1965, the Virginia General Assembly established the Virginia Community College System (VCCS) as an
institution of higher education. The System includes the State Board for Community Colleges, a System
Office located in Richmond, a Shared Services Center located in Daleville and twenty-three community
colleges located on forty campuses throughout the Commonwealth. The VCCS’ mission is to provide
everyone the opportunity to obtain an education and develop the right skills to enhance lives and strengthen
communities.
The following discussion and analysis provide an overview of the financial position and activities of the
VCCS for the year ended June 30, 2025. Management has prepared this discussion, which should be read
in conjunction with the financial statements and footnotes.
The community college foundations are included in the accompanying financial statements as a discrete
component unit in a separate column. The following discussion and analysis do not include the financial
condition and activities of the foundations.
Financial Highlights
The significant financial highlights for the VCCS in fiscal year 2025 were:
• Total net position increased by 10.3% as a result of both increases and decreases in several
operating and nonoperating revenue and expense categories. The results of operations for fiscal
year 2025 reflected an overall increase in net position of $159.1 million.
• Total operating revenues decreased 2.1%. Student tuition and fees, net of scholarship discounts
and allowances, represented 61.4% of total operating revenues which is slightly higher than
prior years.
• The State Board for Community Colleges, in May 2024, approved increasing tuition rates by
$4.79 per credit hour (in-state) and $16.79 per credit hour (out-of-state) effective with the Fall
2024 semester. Two of the eight colleges with tuition differentials had changes to those rates.
The capital fee for out-of-state students also rose by $2.50 per credit hour.
• From fiscal year 2024 to 2025, full-time equivalent student (FTES) enrollment increased 3.9%
from 89,338 to 93,408 FTEs. The enrollment and tuition rate increases combined resulted in an
overall rise in gross tuition collections of approximately $24.1 million in fiscal year 2025. (One
FTE represents thirty credit hours of classes taken by a student over an academic year and is
calculated on an annual basis by taking the total credit hours taught divided by 30.)
• Total state appropriations revenue (non-capital) increased by $85.1 million to $783.7 million as
a result of an increase in the State Appropriation Act, including additional operating funds and
continuing support for salary increases and Affordable Access funds. State capital
appropriations revenue decreased by $10.8 million. This is attributed to decreased construction
activity at Northern Virginia Community College and Piedmont Virginia Community College.
• Total operating expenses increased by 3.5% primarily as a result of employee compensation
increases. Employee compensation represented 57.4% of the total operating costs, which is
slightly higher than prior years.
1
Financial Statements
The three financial statements presented are the Statement of Net Position, the Statement of Revenues,
Expenses and Changes in Net Position, and the Statement of Cash Flows.
Statement of Net Position
The Statement of Net Position presents assets, deferred outflows of resources, liabilities, deferred inflows
of resources and the net position of the VCCS as of June 30, 2025. Net position is the residual amount
equal to assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net
position is presented in three categories; Net investment in capital assets, consists of capital assets, net of
accumulated depreciation and reduced by outstanding balances of any borrowings that are attributable to
the acquisition, construction, or improvement of those assets. Restricted net position consists of restricted
assets reduced by liabilities related to those assets. Restricted net position is classified as either
nonexpendable or expendable. Nonexpendable balances consist of loan funds and permanent
endowments (available for investment purposes only). Expendable balances are available for expenditure
by the VCCS but must be used for purposes determined by external entities. Unrestricted net position
balances are not subject to externally imposed restrictions and may be internally designated for specific
purposes by management of the VCCS.
A summarized Statement of Net Position is as follows:
Summary of the Statement of
Net Position, as of June 30:
(in thousands) Increase (Decrease)
2025 2024 Amount Percentage
Assets
Current assets $ 652,105 $ 566,057 $ 86,047 15.20%
Capital assets, net 1,522,468 1,464,699 57,769 3.94%
Other non-current assets 119,558 127,634 (8,076) (6.33%)
Total Assets 2,294,131 2,158,390 135,741 6.29%
Deferred Outflows of Resources 137,458 124,451 13,007 10.45%
Total Assets and Deferred Outflows of
Resources 2,431,589 2,282,840 148,747 6.52%
Liabilities
Current liabilities 232,576 225,989 6,587 2.91%
Non-current liabilities 559,627 562,808 (3,181) (.57%)
Total Liabilities 792,202 788,797 3,406 0.43%
Deferred Inflows of Resources 94,139 93,719 419 0.45%
Total Liabilities and Deferred Inflows of
Resources 886,341 882,516 3,825 0.43%
Net Position
Net investment in capital assets 1,398,014 1,351,882 46,132 3.41%
Restricted-nonexpendable 113 115 (2) (1.71%)
Restricted-expendable 234,349 191,890 42,460 22.13%
Unrestricted (87,229) (143,565) 56,334 (39.24%)
Total Net Position $ 1,545,247 $ 1,400,323 $ 144,924 10.35%
2
Current Assets
Current assets consist of $521.7 million in cash, cash equivalents, and short-term investments, $28.0 million
in accounts, notes, and interest receivable, $60.8 in state appropriation available, $10.7 million in amounts
due from the commonwealth, $29.3 million in prepaid expenses, and $1.5 million in inventories. The $86.0
million increase in current assets was primarily attributable to an increase of $52.0 million in cash, cash
equivalents, and short-term investments and an increase in appropriation available for capital projects of
$19.0 million.
Current assets cover current liabilities 2.80 times, an indicator of sound liquidity and the ability to weather
short-term demands on working capital. Current assets also cover over 4.08 months of total operating
expenses, excluding depreciation. Both ratios remained consistent with prior years. For fiscal year 2025,
one month of operating expenses (excluding depreciation) equaled $110.9 million.
Capital Assets, Net of Accumulated Depreciation
The overall increase of $57.8 million in net capital assets was due to an increase in various capital
construction costs still in progress, purchases of equipment, and the continued implementation of
Governmental Accounting Standards Board (GASB) Statements 87 and 96, which require governmental
agencies to capitalize all leases and subscription-based technology arrangements (SBITA’s. There were
other small decreases as a result of normal yearly depreciation.
The following tables compares fiscal year 2025 to fiscal year 2024 capital asset balances by category:
Summary of Capital Assets, net
(in thousands)
Increase (Decrease)
2025 2024 Amount Percentage
Land $ 72,633 $ 72,468 $ 165 0.23%
Construction in progress 119,351 98,242 21,109 21.49%
Land improvements 33,730 36,439 (2,709) (7.43%)
Infrastructure 37,471 34,058 3,413 10.02%
Building 1,078,965 1,082,564 (3,599) (.33%)
Equipment and historical treasures 111,845 91,096 20,749 22.78%
Intangibles 1,469 1,384 85 6.14%
Library books 2,197 2,484 (287) (11.55%)
TOTAL $ 1,457,661 $ 1,418,735 $ 38,926 2.74%
Summary of leased assets, net of amortization
(in thousands) Increase (Decrease)
2025 2024 Amount Percentage
Land $ 43 $ 43 $ - 0.00%
Building 50,749 27,198 23,551 86.59%
Equipment and historical treasures 452 437 15 3.43%
TOTAL $ 51,244 $ 27,678 $ 23,566 85.14%
Summary of Right to Use assets, net of amortization
(in thousands) Increase (Decrease)
2025 2024 Amount Percentage
Subscription Asset $ 13,563 $ 18,286 $ (4,723) (25.83%)
TOTAL $ 13,563 $ 18,286 $ (4,723) (25.83%)
3
Other Non-Current Assets
The balance in appropriation available consists of General and Central Capital Planning funds for capital
projects. The increase in other non-current assets is due to increases in appropriation available and long-
term investments.
Deferred Outflows of Resources
Deferred outflows of resources category reports consumption of resources applicable to a future reporting
period. The balances reported for fiscal years 2025 and 2024 include amounts for certain pension and
OPEB changes and will be recognized as pension and OPEB expenses in future fiscal years. The changes
in pension and OPEB from year-to-year are primarily due to actuarial calculations related to the plans,
including the impact of investment performance on the plan assets. In addition, the balances for both fiscal
years include deferred losses on defeasance of debt related to refinancing of certain pooled bond issuances
and will be recognized as expense in future fiscal years.
Current Liabilities
Current liabilities consist of accounts and retainage payable of $55.6 million, accrued payroll expense of
$64.9 million, unearned revenues of $53.8 million, long-term obligations (current portion) of $44.3 million,
and deposits totaling $11.5 million.
Current liabilities slightly increased by $6.6 million in fiscal year 2025 primarily due to the increase in
accounts and retainage payable of $2.4 million. The current portion for long-term liabilities increased by
$1.7 million, and accrued payroll and unearned revenues increased by $1.6 million and $1.0 million
respectively.
Non-Current Liabilities
Non-Current liabilities consist of a net pension obligation of $352.8 million, the OPEB obligation of $78.3
million, leases of $53.7 million, pooled bonds of $50.1 million, accrued leave of $22.4 million, and federal
loan program amounts due of $855 thousand. The overall net decrease of $3.2 million in non-current
liabilities was primarily due to decreases for pension and OPEB obligations of $26.9 million and pooled
bond decreases of $8.2 million offset by increases for leases of $20.8 million and increases to accrued
leave of $10.4 million due to the implementation of Governmental Accounting Standards Board (GASB)
Statement 101 for Compensated Absences.
Deferred Inflows of Resources
The financial statement deferred inflows of resources category is used to report acquisition of resources
applicable to a future reporting period. The balance reported for fiscal years 2025 and 2024 include amounts
related to pension and OPEB that will impact pension and OPEB expenses in future fiscal years and
deferred gains on debt refunding related to refinancing of certain pooled bond issuances. The changes in
pension and OPEB from year-to-year are primarily due to actuarial calculations related to the plans,
including the impact of investment performance on the plan assets
Net Position
The increase in net investment in capital assets of $46.1 million is explained by changes in capital assets,
net of accumulated depreciation and in capital asset-related debt. The increase of $56.3 million in the
unrestricted net position category is the result of several factors. The fluctuation of the VCCS’ proportionate
share of the Commonwealth’s overall OPEB liability and VCCS’ proportionate share of the overall VRS
pension liability. Both liabilities (short and long-term portions) had a combined decrease of $26.5 million.
This, along with other increases in other liability categories makes up the total change. The balance in total
net position is a residual amount equal to the sum of total assets and deferred outflows of resources less
4
the sum of total liabilities and deferred inflows of resources and is considered one measure of the current
financial condition of an organization.
Statement of Revenues, Expenses and Changes in Net Position
The purpose of the Statement of Revenues, Expenses and Changes in Net Position is to present operating
and non-operating revenues received by the institution, operating and non-operating expenses incurred
and any other revenues, expenses, gains, and losses. Changes in net position as presented on the
Statement of Net Position are based on the activity presented in the Statement of Revenues, Expenses
and Changes in Net Position.
A summarized statement of revenues, expenses and changes in net position follows:
Summary of the Statement of Revenues,
Expenses and Changes in Net Position
For the year ended June 30:
(in thousands)
Increase (Decrease)
2025 2024 Amount Percentage
Operating revenue $ 445,613 $ 455,213 $ (9,599) (2.11%)
Operating expenses 1,417,902 1,370,456 47,446 3.46%
Operating loss (972,289) (915,243) (57,044) 6.23%
Non-operating revenues and expenses 1,041,058 963,795 77,263 8.02%
Income (loss) before other revenues,
expenses, gains or losses 68,770 48,552 20,219 41.64%
Other revenues 90,334 91,969 (1,636) (1.78%)
Increase in net position 159,103 140,520 18,583 13.22%
Net position, beginning of year (as
restated) 1,386,144 1,259,803 126,341 10.03%
Net position, end of year $ 1,545,247 $ 1,400,323 $ 144,924 10.35%
5
The following table is a more detailed representation and comparison of amounts included in operating,
non-operating, and other (capital) revenues during the periods ended June 30, 2025, and 2024:
Summary Statement of Revenues
for the year ended June 30:
(in thousands)
Increase (Decrease)
2025 2024 Amount Percentage
Operating revenues
Student tuition and fees, net $ 273,718 $ 247,157 $ 26,561 10.75%
Grants and contracts 128,342 146,299 (17,958) (12.27%)
Auxiliary enterprises, net 21,434 21,784 (352) (1.62%)
Other operating revenue* 22,119 39,972 (17,853) (44.66%)
Total Operating Revenues 445,612 455,212 (9,599) (2.11%)
Non-operating activity
State operating appropriations 783,659 698,606 85,053 12.17%
Local operating appropriations 2,739 2,898 (159) (5.50%)
Grants and gifts 247,648 250,544 (2,896) (1.16%)
Investment income(loss) 9,468 8,279 1,189 14.36%
Interest expense (5,005) (2,926) (2,078) (71.02%)
Other 2,549 6,394 (3,845) (60.13%)
Total net non-operating revenue 1,041,058 963,794 77,264 (8.02%)
Other revenues (capital)
Capital appropriations-state 67,907 78,708 (10,801) (13.72%)
Capital appropriations-local 3,137 2,568 568 22.10%
Capital gifts and grants 19,290 10,692 8,598 (80.41%)
Total other revenues (capital) 90,334 91,967 (1,634) (1.78%)
Total revenues $ 1,577,004 $ 1,510,973 $ 66,031 4.37%
* Includes sales/services of education department and miscellaneous other revenues
Operating Revenues
Total operating revenues decreased by 2.1% compared to the prior year. Gross student tuition and fee
revenues (before scholarship discounts and allowances) increased by $53.7 million. Net tuition and fees
revenue increased by $26.6 million (10.8%). Tuition and fee rates increased by $4.79 per credit hour
contributing to this net tuition revenue increase. Other operating revenue sources fluctuated up slightly
contributing to the overall increase of $33.4 million in operating revenues.
Non-operating and Other Revenues
Total net non-operating revenue increased by $75.6 million. State appropriation revenues increased by
$85.1 million, however this was offset by the decrease in grants and other non-operating revenues of $2.9
million and $3.8 million respectively. A graphic presentation of fiscal year 2025 revenues by source (per the
Statement of Revenues, Expenses and Changes in Net Position) is below.
6
7
The following table is a detailed breakdown of operating expenses by function and a comparison of changes
by category for the periods ended June 30, 2025, and 2024:
Summary Statement of Expenses by Function
for the year ended June 30:
(in thousands)
Increase (Decrease)
2025 2024 Amount Percentage
Operating expenses:
Instruction $ 530,271 $ 482,744 $ 47,527 9.85%
Public service 23,571 68,655 (45,084) (65.67%)
Academic support 133,899 119,420 14,479 12.12%
Student services 128,441 122,062 6,379 5.23%
Institutional support 221,438 237,015 (15,578) (6.57%)
Operation and maintenance 181,075 177,970 3,105 1.74%
Scholarships and fellowships 181,666 149,264 32,402 21.71%
Auxiliary enterprises 17,528 13,311 4,218 31.69%
Other expenses 15 14 1 4.45%
Total operating expenses $ 1,417,902 $ 1,370,456 $ 47,446 3.46%
Operating Expenses
Operating expenses totaled approximately $1.4 billion for fiscal year 2025, an increase of $47.4 million.
The natural expense category, compensation and benefits, comprised $813.7 million of total VCCS
operating expenses representing a 6.9% increase over fiscal year 2024. Scholarship expenses increased
$51.2 million, and supplies, services and other expenses decreased by $70.0 million, due primarily to the
transfer of appropriation and positions for the Workforce Investment and Opportunity Act (WIOA) to the new
Department of Workforce Development and Advancement, pursuant to Chapters 624 and 625, 2023 Acts
of Assembly.
8
A graphic presentation of fiscal year 2025 operating expenses by function (per the Statement of
Revenues, Expenses and Changes in Net Position) is below.
9
Statement of Cash Flows
The Statement of Cash Flows provides additional information about the financial results of the VCCS by
reporting the major sources and uses of cash.
Summary Statement of Cash Flows
for the year ended June 30:
(in thousands)
2025 2024 $ Change % Change
Cash received from operations $515,429 $539,163 (23,734) (4.40%)
Cash used in operations 1,452,437 1,407,579 44,858 3.19%
Net cash used in operations ($937,008) ($868,416) (68,592) 7.90%
Net cash provided by non-capital financing
activities $1,036,165 $960,551 75,614 7.87%
Net cash used in capital and related
financing activities (58,061) (48,808) (9,253) 18.96%
Net cash provided by (used in) investing
activities 6,566 5,147 1,419 27.55%
Net increase (decrease) in cash and cash
equivalents $47,662 $48,474 (812) (1.67%)
Cash and cash equivalents, beginning of
year $447,008 $398,534
Cash and cash equivalents, end of year $494,670 $447,008
The primary sources of cash for the VCCS included tuition and fees of $274.9 million, operating grants and
contracts of $126.5 million, and auxiliary revenues of $21.5 million. The primary uses of operating cash
included employee salaries, wages, fringe benefits and pension benefits of $852.2 million, operating
expenses (payments to suppliers/others and utilities) of $333.2 million and scholarships of $197.0 million.
Net cash used in operations is significantly greater than the cash received from operations on this statement
due to the required presentation of state appropriation and grants/gifts as cash flows from non-capital
financing activities. Net cash provided by non-capital financing activities increased $75.6 million due to an
increase of $85.0 million in state and local appropriations, a decrease of $2.90 million in grants and gifts,
and a decrease of $3.8 million in other non-operating revenue. Net cash flows from capital and related
financing activities decreased $9.3 million due to a decrease of $10.8 million in state and local capital
appropriations, an increase of $8.6 million in capital grants and gifts, and an increase of $70.6 million for
capital asset purchases. Net cash provided by (used in) investing activities increased $21.09 million as
investment purchases were $7.3 million lower, sale of investments was $6.9 million lower, and investment
income was $1.0 million higher in fiscal year 2025. The overall increase in cash and cash equivalents was
$47.7 million at the end of fiscal year 2025
10
.
Economic Outlook
The State Board for Community Colleges has noted its intention to keep VCCS tuition and mandatory fees
at less than half the rates of public four-year institutions in Virginia. The VCCS’ rate in fiscal year 2026 will
be 31.8% of the average of the four-year institutions for total tuition and mandatory fees.
Effective with the fall 2025 session, the State Board for Community Colleges elected to increase tuition
rates by $4.90 per credit hour for all students, as well as to increase the capital fee by $2.50 per credit hour
for out-of-state students. Within the VCCS, eight colleges have tuition differential rates ranging from $1.00
per credit hour to $29.78 per credit hour. Only one of the eight colleges increased their tuition differential,
and that was by $0.10 per credit hour.
Chapter 725, 2025 Reconvened Session of the Virginia Acts of Assembly, authorized the funding to create
a Workforce Trades and Innovation Center at Paul D. Camp Community College. This chapter also
authorized funding to create an Aviation Maintenance Technician Facility at Danville Community College.
In addition, this chapter approved the equipment funds for the replacement of the French Slaughter Building
on the Locust Grove campus of Germanna Community College.
The VCCS capitalized construction expenses totaling $56.4 million during fiscal year 2025. These costs
primarily included projects that were still in the construction phase as of June 30, 2025, but also included a
few projects that were complete as of June 30, 2025. Construction costs for projects completed during fiscal
year 2025 totaled $35.4 million.
The VCCS has approved contractual commitments for capital projects totaling $308 million prior to June
30, 2025. Expenses processed against these commitments as of June 30, 2025, totaled $144 million,
leaving an unpaid commitment balance of $164 million as of June 30, 2025.
11
CONSOLIDATED
FINANCIAL
STATEMENTS
12
Virginia Community College System
Consolidated
Statement of Net Position
As of June 30, 2025
Component
Units
VCCS Foundations
Assets
Current Assets
Cash and cash equivalents (Note 2) 486,518,894 37,980,809
Appropriation available 60,786,721 -
Short term investments (Note 2) 35,150,976 31,820,060
Accounts receivable, net (Note 3) 27,295,119 3,528,954
Pledges receivable (Note 3) 5,023,295
Due from commonwealth (Note 4) 10,764,757 -
Interest receivable 285,799 119,020
Prepaid expenses 29,371,346 774,819
Inventories 1,475,425 -
Notes receivable, net (Note 3) 455,770 265,694
Total Current Assets 652,104,807 79,512,651
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 8,311,561 -
Prepaid expenses 852,285 -
Endowment cash and cash equivalents (Note 2) 17,606 8,316,304
Appropriation available 32,235,860 -
Endowment investments (Note 2) 281,022,980
Other long-term investments (Note 2) 51,113,508 123,985,340
Accounts receivable, net (Note 3) 346,642 638,408
Investments in real estate (Note 2) 1,051,105
Pledges receivable (Note 3) 4,071,442
Due from commonwealth (Note 4) 2,853,747 -
Notes receivable, net (Note 3) 25,152 -
Post employment benefit assets (Note 18) 23,801,888 -
Non-depreciable capital assets, net (Note 5) 191,975,330 29,819,150
Depreciable capital assets, net (Note 5) 1,330,492,579 66,931,982
Total Noncurrent Assets 1,642,026,158 515,836,711
Total Assets 2,294,130,965 595,349,362
Deferred Outflows of Resources (Note 8) 137,457,795 -
Total Assets and Deferred Outflows of Resources 2,431,588,760 595,349,362
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 55,618,116 5,616,390
Accrued payroll expense 64,885,912 153,523
Unearned revenue 53,847,061 614,554
Long-term liabilities-current portion (Note 9) 44,388,490 1,448,186
Securities lending obligation 178,366 -
Post employment benefit obligations (Note 9) 2,189,593 -
Deposits 11,467,999 211,738
Total Current Liabilities 232,575,537 8,044,391
13
Virginia Community College System
Consolidated
Statement of Net Position
As of June 30, 2025
Component
Units
VCCS Foundations
Noncurrent Liabilities
Unearned revenue 1,494,955 217,500
Long-term liabilities (Note 9) 126,161,547 43,940,397
Due to federal government (Note 9) 855,387 -
Pension and post employment benefit obligations (Note 9) 431,115,017 -
Total Noncurrent Liabilities 559,626,906 44,157,897
Total Liabilities 792,202,443 52,202,288
Deferred Inflows of Resources (Note 8) 94,139,020
Total Liabilities and Deferred Inflows of Resources 886,341,463 52,202,288
Net Position
Net investment in capital assets 1,398,014,452 43,532,896
Restricted for:
Nonexpendable 113,045 179,662,301
Expendable 234,349,087 179,798,281
Unrestricted (87,229,287) 140,153,596
Total Net Position 1,545,247,297 543,147,074
The accompanying Notes to the Financial Statements are an integral part of this statement.
14
Virginia Community College System
Consolidated
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Units
Revenues VCCS Foundations
Operating Revenue
Tuition and fees (net of scholarship allowance of $234,043,775 ) 273,718,195
Federal grants and contracts 67,746,099 4,559,869
State and local grants 47,336,850 4,108,626
Nongovernmental grants 13,259,257 4,155,969
Sales/services of education department 597,445
Auxiliary enterprises (net of scholarship allowance of $1,214,284 ) 21,433,543
Gifts and contributions 25,188,408
Other operating revenues 21,521,698 22,101,878
Total Operating Revenue 445,613,087 60,114,750
Expenses
Operating Expenses
Instruction 530,271,121 1,410,465
Public service 23,572,154 1,624,184
Academic support 133,898,779 22,294,284
Student services 128,441,068 297,401
Institutional support 221,437,602 20,914,172
Operation and maintenance 181,074,673 1,594,723
Scholarships and fellowships 181,665,563 13,807,818
Auxiliary enterprises 17,527,883 495,501
Fundraising 3,035,989
Other expenses 12,849 1,897,099
Total Operating Expenses (Note 12) 1,417,901,692 67,371,636
Operating Income (Loss) (972,288,605) (7,256,886)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 783,658,614
Local appropriations 2,738,851
Grants and gifts 247,648,365
Investment income 9,467,731 45,392,358
Interest on capital asset related debt (5,004,530)
Other nonoperating revenue (expense) 2,549,330
Net Nonoperating Revenue 1,041,058,361 45,392,358
Income before other revenues, expenses
gains (losses) 68,769,756 38,135,472
Capital appropriations-state (Note 20) 67,907,092
Capital appropriations-local 3,136,781
Capital gifts, grants and contracts 19,289,865 1,067
Additions to permanent and term endowments 13,112,083
Increase (Decrease) in Net Position 159,103,494 51,248,622
Net Position
Net Position beginning of year (Note 1-V) 1,386,143,803 491,898,452
Net Position end of year 1,545,247,297 543,147,074
The accompanying Notes to the Financial Statements are an integral part of this statement.
15
Virginia Community College System
Consolidated
Statement of Cash Flows
For the Year Ended June 30, 2025
Cash flows from operating activities:
Tuition and fees 274,912,941
Grants and contracts 126,503,316
Payments to suppliers and others (310,076,206)
Payments for employee wages (635,346,963)
Payments for employee fringes and pension benefits (216,864,988)
Payment for scholarships (197,013,174)
Payments for utilities (23,120,305)
Sales and services of education department 597,445
Auxiliary 21,538,445
Custodial receipts 20,569,185
Custodial disbursements (19,546,983)
PLUS, Stafford and Direct Lending loan receipts 49,575,152
PLUS, Stafford and Direct Lending loan disbursements (50,468,318)
Loans issued to students 159,029
Loans collected from students 174,763
Other 21,398,524
Net cash used by operating activities (937,008,137)
Cash flows from non-capital financing activities:
State appropriations 783,658,614
Local appropriations 2,738,851
Grants and gifts 246,339,760
Other non-operating revenue(expense) 3,427,920
Net cash provided (used) by non-capital financing activities 1,036,165,145
Cash flows from capital and related financing activities:
Capital appropriations-state 26,628,428
Capital appropriations-local 3,136,781
Capital grants and gifts 17,724,715
Purchase capital assets (70,622,380)
Proceeds from sale of capital assets 456,881
Debt interest payments (7,424,984)
Debt principal payments (27,960,254)
Net cash provided (used) by capital financing activities (58,060,813)
Cash flows from investing activities:
Purchases of investments (22,398,144)
Sale of investments 21,555,153
Investment income 7,408,515
Net cash provided (used) by investing activities 6,565,524
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 47,661,719
Cash and cash equivalents, beginning of year 447,007,976
Cash and cash equivalents, End of Year 494,669,695
16
Virginia Community College System Page 17
Consolidated
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (973,681,039)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 86,306,450
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and accounts receivable, net (1,012,669)
Prepaid expenses and other (11,504,182)
Post employment benefits asset (1,986,330)
Accrued compensation and leave 2,557,276
Accounts payable and other 38,698
Unearned revenue 1,943,894
Deposits pending distribution (620,567)
Custodial receipts(disbursements) 1,016,128
Stafford and Direct Loan receipts(disbursements) (893,166)
Pension liability (18,321,931)
Post employment benefits liability (8,231,776)
Deferred inflows of resources related to pensions and post employment benefits 600,766
Deferred outlflows of resources related to pensions and post employment benefits (13,219,689)
Net cash used in operating activities (937,008,137)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 494,848,061
Less: Securities Lending Cash Equivalents 178,366
Cash and cash equivalents end of year 494,669,695
Noncash transactions
Donated capital assets 1,565,150
VRS Special Revenue Allocation 2,631,243
Amortization of bond premium 388,193
Unrealized gain/loss on investments 1,923,092
Amortization of deferral on debt defeasance (212,500)
Capital assets acquired through the assumption of a liability 39,265,926
Retainage payable 5,037,152
The accompanying Notes to the Financial Statements are an integral part of this statement.
17
NOTES TO THE
FINANCIAL
STATEMENTS
18
VIRGINIA COMMUNITY COLLEGE SYSTEM
NOTES TO FINANCIAL STATEMENTS
As of June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Virginia Community College System (VCCS) was established as an institution of higher
education in 1965. The System includes the State Board for Community Colleges, a System
Office located in Richmond, a Shared Service Center and twenty-three community colleges
located on forty campuses throughout the Commonwealth.
The Shared Service Center (SSC) was established to process administrative transactions.
Located in Daleville, Virginia, the SSC supports the VCCS mission by providing customer
service and administrative services to the 23 community colleges and System Office. These
services include administrative functions in the areas of human resources, fiscal services,
payroll, and procurement. The costs associated with the SSC are allocated to the 23
community colleges and System Office.
The State Board for Community Colleges is the governing body and is charged with the
responsibility to establish, control, and administer a statewide system of publicly supported
comprehensive community colleges. The System therefore functions as a statewide
institution of higher learning.
The accompanying financial statements include all of the individual community colleges and
the System Office under the control of the State Board for Community Colleges.
The System is a discrete component unit of the Commonwealth of Virginia and is included in
the general-purpose financial statements of the Commonwealth. A separate report is
prepared for the Commonwealth of Virginia that includes all agencies, boards, commissions,
and authorities over which the Commonwealth exercises or has the ability to exercise
oversight authority.
B. Community College Foundations
The community college foundations are legally separate, tax-exempt organizations formed to
promote the achievements and further the aims and purposes of the colleges. The
foundations accomplish their purposes through fundraising and funds management efforts
that benefit the colleges and their programs. Although the colleges do not control the timing
or amount of receipts from the foundations, the majority of resources or income thereon that
the foundations hold and invest is restricted to the activities of the colleges by the donors.
Because these restricted resources held by the foundations can only be used by, or for the
benefit of the colleges, the foundations are considered discrete component units.
During the year ended June 30, 2025, the foundations distributed $25,321,314 to the
colleges for both restricted and unrestricted purposes. Complete financial statements for the
foundations can be obtained by writing the VCCS Office of Fiscal Services, 300 Arboretum
Place, Suite 200, Richmond, VA 23236.
C. Financial Statement Descriptions
19
The three financial statements presented are the Statement of Net Position, the Statement of
Revenues, Expenses and Changes in Net Position, and the Statement of Cash Flows.
The Statement of Net Position presents the assets, deferred outflows of resources, liabilities,
and deferred inflows of resources of the VCCS at the end of the fiscal year and also provides
the amount of net position and the availability for expenditure. The Statement of Revenues,
Expenses, and Changes in Net Position presents operating and non-operating revenues
received by the institution, operating and non-operating expenses incurred and any other
revenues, expenses, gains and losses. The Statement of Cash Flows provides additional
information about the financial results of the VCCS by reporting the major sources and uses
of cash.
D. Basis of Accounting
For financial reporting purposes, the VCCS is considered a special purpose government
engaged in only business-type activities. Business-type activities are those that are financed
in whole or in part by fees charged to external parties for goods and services. Accordingly,
the financial statements have been presented using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. All material internal transactions have been eliminated.
Revenues and expenses of the summer academic term occur within two fiscal years,
because the term extends from May through August and the fiscal year ends on June 30.
Expenses and an equal amount of revenue have been reported in the current period for the
portion of the summer academic term from May 16 through June 30, 2025.
The community college foundations are private, nonprofit organizations that report under
FASB standards. As such, certain revenue recognition criteria and presentation features are
different from GASB. Where necessary, reclassifications have been made to convert FASB
presentation to GASB presentation requirements.
The financial statements for the community college foundations are for the year ending June
30, 2025 except for Dabney S. Lancaster (Educational Foundation), Eastern Shore,
Germanna, Laurel Ridge, Mountain Empire, New River, Piedmont, Tidewater (Educational
and Real Estate Foundations), Virginia Western, and Wytheville (Educational, Scholarship
and Real Estate Foundations) which are as of December 31, 2024.
E. Lease Receivable
The System determines if an arrangement contains a long-term lease at the inception of a
contract and the lease classification is determined at the commencement date. Short-term
leases with an initial term of 12 months or less, including all renewal options, are not
recorded on the Statement of Net Position and are recognized as inflows of resources in the
period to which the payments relate. Long-term leases are recognized and the lease term
includes renewal options that are reasonably certain of being exercised. The System’s lease
receivable is measured at the present value of lease payments expected to be received
during the lease term. Under some lease agreements, the System may receive variable
payments based on future performance by the lessee. These variable payments are not
included in the measurement of the lease receivable and are recognized as inflows of
resources in the period to which those payments relate. Any component of the variable
payments that are fixed in substance is included in the measurement of the lease receivable.
The System uses its incremental borrowing rate to discount the lease payments. The
incremental borrowing rate is based on the Department of Accounts estimated rate of interest
for borrowing over a similar term as the lease term.
20
A deferred inflow of resources is recorded at the commencement of a lease in an amount
equal to the initial recording of the lease receivable. The deferred inflow of resources is
amortized on a straight-line basis over the term of the lease.
F. Installment Payment Receivable
Northern Virginia Community College (Northern Virginia) has a PPP arrangement whereby
the Northern Virginia (the transferor), contracted with a vendor (the operator), to provide
dining services by conveying control of the right to operate the dining areas on multiple
campuses. Initial term of the arrangement was one year with four renewal options, which
were exercised, and includes provisions for Northern Virginia to receive monthly variable
payments based on gross sales. These variable payments are not included in the
measurement of the Installment payment receivable and are recognized as revenue in the
period to which those payments relate. Northern Virginia did not receive any variable
payments in fiscal year 2025.
G. Prepaid Assets
Prepaid assets for rent, insurance, and similar items are recognized when purchased and
expensed when used.
H. Inventories
Inventories are stated at cost (primarily first-in, first-out method) and consist mainly of goods
purchased for resale and expendable supplies.
I. Cash Equivalents and Investments
Cash equivalents maintained by the VCCS are investments with original maturities of less
than three months. Investments in money market accounts and in Commonwealth
sponsored investment pools are reported at amortized cost. All other investments are
reported at fair market value, in accordance with GASB Statement 31, Accounting and
Financial Reporting for Certain Investments and for External Investment Pools, as amended
by GASB Statement 72, Fair Value Measurement and Application. GASB Statement 72
provides guidance for determining fair value measurements using the level of fair value
hierarchy and valuation techniques.
J. Capital Assets
Plant assets consisting of land, buildings, infrastructure, equipment, library books, intangible
assets, and construction in progress are stated at appraised historical cost or actual cost
where determinable. Intangible assets include computer software and right-to-use lease
assets. Improvements to buildings, infrastructure and land that significantly increase the
usefulness, efficiency or life of the asset are capitalized. Routine maintenance and repairs
are charged to operations when incurred. Donated assets are recorded at acquisition value
at the date of donation. The capital asset values presented in these financial statements are
extracted from the financial data maintained by the System’s Administrative Information
System (AIS). Expenses for equipment are capitalized when the unit acquisition cost is
$5,000 or greater and the estimated useful life is one year or more. Occupancy permits are
used to determine when to reclassify buildings from construction-in-progress.
Right-to-use lease assets represent the System’s right to use an underlying asset for a lease
term, and are initially measured as the sum of the following:
21
• Amount of the initial measurement of the related lease liability
• Lease payments made prior to the commencement of the lease term, less any lease
incentives
• Initial direct costs that are ancillary charges necessary to place the lease asset into
service
“Right-to-use subscription-based information technology arrangement (SBITA) assets
represent the System’s right to use an underlying asset for an arranged term, and are initially
measured as the sum of the Amount of the initial measurement of the related SBITA liability,
SBITA payments made prior to the commencement of the SBITA term, less any SBItA
incentives, and Initial direct costs that are ancillary charges necessary to place the SBITA
asset into service. Right-to-use SBITA assets are amortized on a straightline basis over the
shorter of the SBITA term or the useful life of the underlying asset.”
Depreciation is calculated using the straight-line method over the estimated useful lives of
the assets, generally 50 years for buildings, 20 to 25 years for infrastructure and land
improvements, 3 to 25 years for equipment, 10 years for library books, 20 years for patents,
trademarks, and copyrights, and 5 to 10 years for intangible assets - computer software.
Right-to use lease assets are amortized on a straight-line basis over the shorter of the lease
term or the useful life of the underlying asset, generally 7 years for buildings, 5 years for
equipment, and 2 to 6 years for subscriptions. Amortization is allocated to the functional
expense categories. Amortization expense is combined with depreciation expense in the
Statement of Revenues, Expenses, and Changes in Net Position.
K. Unearned Revenues
Unearned revenue represents revenues collected but not earned as of June 30. This
consists primarily of revenue for student tuition and certain auxiliary activities accrued in
advance of the semester, and advance payments on grants and contracts.
L. Accrued Compensated Absences
The amount of leave earned but not taken by all classified employees,
administrative/professional faculty, teaching faculty, and presidents is recorded as a liability
on the balance sheet. The amount reflects, as of June 30, all unused annual leave,
compensatory leave, and the amount payable upon termination under the Commonwealth of
Virginia's sick leave pay out policy. Also included in the liability is the System’s share of the
FICA taxes on leave balances for which employees will be compensated.
M. Lease Liability
The System determines if an arrangement contains a long-term lease at the inception of a
contract. The lease classification is determined at the commencement date, the date the
System has the right to control the property. The lease term includes renewal options that
are reasonably certain of being exercised. Short-term leases with an initial term of 12 months
or less, including all renewal options, are not recorded on the Statement of Net Position and
are recognized as outflows of resources in the period to which the payments relate. Lease
liabilities are measured at the present value of payments expected to be made during the
lease term. Measurement of the lease liability includes the following if required by a lease:
• Fixed payments
• Variable payments that are fixed in substance
• Amounts that are reasonably certain of being required to be paid under residual value
guarantees
22
• The exercise price of a purchase option if it is reasonably certain that the System will
exercise that option
• Payments for penalties for terminating the lease
• Any lease incentives
• Any other payments that are reasonably certain of being required based on an
assessment of all relevant factors
Variable payments are not included in the measurement of the lease liability and are
recognized as outflows of resources in the period to which those payments relate. Any
component of the variable payments that are fixed in substance is included in the
measurement of the lease liability.
For real estate leases, the present value of payments expected to be made during the lease
term is calculated using the discount rate implicit in the lease agreement and if unavailable,
the System will obtain the lessor’s internal borrowing rate and if unavailable, then the System
will use the Department of Accounts incremental rate. For equipment leases, the present
value of payments expected to be made during the lease term is calculated using the
discount rate implicit in the lease agreement and if unavailable, The System will use the
Department of Accounts incremental rate at the beginning of the lease term.
N. Deposits
Deposits represent funds held by the VCCS on behalf of others as a result of custodial
relationships with various groups and organizations. Custodial funds are expected to be
expended within 3 months.
O. Pensions
The Virginia Retirement System (VRS) State Employee Retirement Plan and the Virginia Law
Officers’ System (VaLORS) Retirement Plan are single employer pension plans that are
treated like cost-sharing plans. For purposes of measuring the net pension liability,
deferred outflows of resources and deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of the VRS State Employee
Retirement Plan and the VaLORS Retirement Plan; and the additions to/deductions from
the VRS State Employee Retirement Plan’s and the VaLORS Retirement Plan’s net
fiduciary position have been determined on the same basis as they were reported by
VRS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit terms. Investments
held by VRS are reported at fair value.
P. Post-Employment Benefits
Plans administered by the VRS
State Employee Health Insurance Credit Program
The Virginia Retirement System (VRS) State Employee Health Insurance Credit Program is a
single employer plan that is presented as a multiple-employer, cost-sharing plan. The State
Employee Health Insurance Credit Program was established pursuant to §51.1-1400 et seq.
of the Code of Virginia, as amended, and which provides the authority under which benefit
terms are established or may be amended. The State Employee Health Insurance Credit
Program is a defined benefit plan that provides a credit toward the cost of health insurance
coverage for retired state employees.
Group Life Insurance Program
23
The Virginia Retirement System (VRS) Group Life Insurance Program is a multiple employer,
cost-sharing plan. It provides coverage to state employees, teachers, and employees of
participating political subdivisions. The Group Life Insurance Program was established
pursuant to §51.1-500 et seq. of the Code of Virginia, as amended, and which provides the
authority under which benefit terms are established or may be amended. The Group Life
Insurance Program is a defined benefit plan that provides a basic group life insurance benefit
for employees of participating employers.
Line of Duty Act Program
The Virginia Retirement System (VRS) Line of Duty Act Program (LODA) is a multiple-
employer, cost-sharing plan. The Line of Duty Act Program was established pursuant to
§9.1-400 et seq. of the Code of Virginia, as amended, and which provides the authority under
which benefit terms are established or may be amended. The Line of Duty Act Program
provides death and health insurance benefits to eligible state employees and local
government employees, including volunteers, who die or become disabled as a result of the
performance of their duties as a public safety officer. In addition, health insurance benefits
are provided to eligible survivors and family members.
Virginia Sickness and Disability Program
The Virginia Retirement System (VRS) Disability Insurance Program (Virginia Sickness and
Disability Program) is a single employer plan that is presented as a multiple-employer, cost-
sharing plan. The Disability Insurance Program was established pursuant to §51.1-1100 et
seq. of the Code of Virginia, as amended, and which provides the authority under which
benefit terms are established or may be amended. The Disability Insurance Program is a
managed care program that provides sick, family and personal leave and short-term and
long-term disability benefits for State Police Officers, state employees, and VaLORS
employees.
For purposes of measuring the net OPEB liability (asset), deferred outflows of resources and
deferred inflows of resources related to OPEB plans, and OPEB expense, information about
the fiduciary net position of the Virginia Retirement System’s (VRS) administered OPEB
Plans and the additions to/deductions from the OPEB Plan’s net fiduciary position have been
determined on the same basis as they were reported by VRS. In addition, benefit payments
are recognized when due and payable in accordance with the benefit terms. Investments
held by VRS are reported at fair value.
Plan administered by the Department of Human Resource Management
Pre-Medicare Retiree Healthcare Plan
Pre-Medicare Retiree Healthcare is a single-employer defined benefit OPEB plan that is
treated like a cost-sharing plan for financial reporting purposes. This program was
established by Title 2.2, Chapter 28 of the Code of Virginia for retirees who are not yet
eligible to participate in Medicare. It is the same health insurance program offered to active
employees and managed by the Virginia Department of Human Resource Management.
After retirement, VCCS no longer subsidizes the retiree’s premium; however, since both
active employees and retirees are included in the same pool for purposes of determining
health insurance rates, retiree rates are effectively lower than what might otherwise be
available outside of this benefit.
Q. Classification of Revenues and Expenses
The VCCS has classified its revenues as either operating or nonoperating revenues
according to the following criteria:
24
Operating revenues include activities that have the characteristics of exchange transactions,
such as tuition and fees, sales and services of auxiliary enterprises, most federal, state and
local grants and contracts, and interest on student loans.
Nonoperating revenues include activities that have the characteristics of non-exchange
transactions, such as gifts and contributions, state appropriations and investment income.
Nonoperating expenses include interest on debt related to the purchase of capital assets and
losses on disposal of capital equipment. All other expenses are classified as operating
expenses.
R. Public-Private Partnership and Public-Public Partnerships (PPP and APA Agreements)
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public
Partnerships (PPPs) and Availability Payment Arrangements (APAs). The objective of this
Statement is to better meet the information needs of financial statement users by improving
the comparability of financial statements among governments that enter into PPPs and APAs
and by enhancing the understandability, reliability, relevance, and consistency of information
about PPPs and APAs. The System implemented GASB 94 on July 1, 2022. The colleges
regularly enter into agreements with private and public entities to operate bookstore services.
The colleges provide space and operational support in return for commissions based on
graduated sales level.
S. Scholarship Discounts and Allowances
Student tuition and fees revenues, and certain other revenues from students, are reported
net of scholarship discounts and allowances in the Statement of Revenues, Expenses, and
Changes in Net Position. Scholarship discounts and allowances are the difference between
the stated charge for goods and services provided by the VCCS, and the amount that is paid
by students and/or third parties making payments on the student’s behalf. Certain
governmental grants and other federal, state or nongovernmental programs are recorded as
either operating or nonoperating revenues in the financial statements. To the extent that
such revenues are used to satisfy tuition and fees and other student charges, the VCCS has
recorded a scholarship discount and allowance.
T. Deferred Inflows and Outflows of Resources
Deferred outflows of resources are defined as the consumption of net assets applicable to a
future reporting period. The deferred outflows of resources have a positive effect on net
position similar to assets.
Deferred inflows of resources are defined as the acquisition of net assets applicable to a
future reporting period. The deferred inflows of resources have a negative effect on net
position similar to liabilities.
U. Net Position
Net position balances are classified as follows:
Net investment in capital assets: Consists of capital assets, net of accumulated depreciation
reduced by outstanding debt attributable to the acquisition, construction or improvement of
those assets.
25
Restricted-nonexpendable: Restricted nonexpendable balances consist of endowment funds
in which donors have stipulated, as a condition of the gifts that the principal is to remain
inviolate in perpetuity.
Restricted-expendable: Restricted expendable balances include resources in which the
VCCS is legally or contractually obligated to spend in accordance with restrictions imposed
by external third parties.
Unrestricted: Unrestricted balances represent resources that may be used at the discretion of
the governing board for any lawful purpose.
When an expense is incurred that can be paid from either restricted or unrestricted
resources, it is the policy of the VCCS to first apply the expense towards restricted resources
and then towards unrestricted resources.
V. Restatements
Statement of Revenue, Expenses, and Changes in Net Position:
Net Position as of June 30, 2024 – previously reported $1,399,566,128
System Office GASB 96 SBITA Addition ($1,672,069)
Virginia Western GASB 87Lease Correction (332.111)
Danville Community College Bulk Purchases 680,685
Change in accounting principle (GASB 101) __ (12,098,830)
Net Position as of July 1, 2024 – as restated $1,386,143,803
W. New Accounting Pronouncements
In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of
this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That
objective is achieved by aligning the recognition and measurement guidance under a unified
model and by amending certain previously required disclosures.
2. CASH AND INVESTMENTS
Cash and Cash Equivalents
Cash equivalents maintained by the VCCS are investments with original maturities of less than three
months.
Pursuant to Section 2.2-1800, et seq., Code of Virginia, all state funds of the VCCS are maintained
by the Treasurer of Virginia who is responsible for the collection, disbursement, custody, and
investment of state funds.
Deposits
Local cash deposits with banks and savings institutions not with the Treasurer of Virginia are covered
by federal depository insurance or collateralized in accordance with the Virginia Security of Public
Deposits Act, Section 2.2-4400 et seq., Code of Virginia. Deposits covered by the Virginia Security
of Public Deposits Act totaled $49,963,143 at June 30, 2025.
26
Investments
Certain deposits and investments are held by the VCCS. Such investments are reported separately
from cash and cash equivalents. Investments represent securities with original maturities of more
than three months and for which management intends to hold the securities to maturity.
Investments in money market accounts, non-negotiable certificates of deposit, and the Virginia State
Non-Arbitrage Program (SNAP) are reported at amortized cost. SNAP offers a professionally-
managed money market mutual fund, which provides a temporary pooled investment vehicle for
proceeds pending expenditure, and with record keeping, depository and arbitrage rebate
calculations. This program complies with all standards of GASB Statement 79. SNAP investments
are reported using the net asset value (NAV) per share, which is calculated on an amortized cost
basis that provides an NAV that approximates fair value. VCCS did not have any SNAP investments
at fiscal year end 2025. All other investments are reported at fair market value, in accordance with
GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External
Investment Pools, as amended by GASB Statement 72, Fair Value Measurement and Application.
GASB Statement 72 provides guidance for determining fair value measurements using the level of
fair value hierarchy and valuation techniques.
At June 30, 2025, the System had investments of $88,852,222 in the Local Government Investment
Pool (LGIP). The LGIP is an externally managed investment pool that is not registered with the
Securities and Exchange Commission. Pursuant ot the Code of Virginia, the Treasury Board of the
Commonwealth sponsors the LGIP. The LGIP values portfolio securities by the amortized cost
method and the maturity is less than one year. The System classified LGIP as cash and cash
equivalents.
At June 30, 2025, the System had investments of $3,998,065 in the Local Government Investment
Pool - Extended Maturity (LGIP-EM), which is an externally managed investment pool that is not
registered with the Securities and Exchange Commission. Pursuant to the Code of Virginia, the
Treasury Board of the Commonwealth sponsors the LGIP-EM. The LGIP-EM portfilio reports its
investments at fair value. The System classified LGIP-EM as short-term investments.
Investments of the member colleges of the VCCS are limited to those allowed under Chapter 45,
Investments of Public Funds Act, Sections 2.2-4500, 2.2-4501, 2.2-4509 and 2.2-4510 of the Code of
Virginia. Commonwealth of Virginia law limits investments in stocks, bonds, notes, and other
evidences of indebtedness of the Commonwealth and those unconditionally guaranteed as to the
payment of principal and interest by the Commonwealth. Investments in United States agencies all
carry the explicit guarantee of the United States government. Additionally, Virginia’s community
colleges may participate in the Local Government Investment Pool as authorized by Chapter 46 of
the Code of Virginia and managed by the Commonwealth of Virginia Treasury Board. Authorized
investments in the Local Government Investment Pool are limited to those set forth for local officials
in Chapter 45, Sections 2.2-4500 of the Code of Virginia.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The custodial credit risk for investments is
the risk that, in the event of failure of the counterparty to a transaction, a government will not be able
to recover the value of investment or collateral securities that are in the possession of an outside
party. VCCS has no investments or deposits exposed to custodial credit risk for 2025.
27
Interest Rate Risk
Disclosure of the maturities of investments is required when the fair market value is adversely
affected by changes in interest rates. Investments subject to interest rate risk are outlined in the
accompanying chart.
Credit Risk
Disclosure of the credit quality rating is required for investments exposed to the risk that an issuer or
other counterparty will not fulfill its obligations. Investments subject to credit rate risk are outlined in
the accompanying chart.
Concentration of Credit Risk
Disclosure of any one issuer is required when it represents 5 percent or more of total investments.
VCCS does not have such concentration of credit risk for 2025.
Foreign Currency Risk
Disclosure is required for investments exposed to changes in exchange rates that will adversely
affect the fair value of an investment or a deposit. VCCS has no investments or deposits subject to
Foreign Currency Risk for 2025.
Summary of VCCS Cash and Cash Equivalents
Cash and Cash Equivalents:
Local Cash and Cash Equivalents $ 153,325,481
Treasurer of Virginia 333,015,047
Treasurer of Virginia (Securities Lending) 178,366
Subtotal $ 486,518,894
Restricted Cash and Cash Equivalents:
Local Cash and Cash Equivalents $8,668,542
Treasurer of Virginia (Unreimbursed Bond Payments) (356,981)
Endowment Cash and Cash Equivalents 17,606
Subtotal $8,329,167
Total Cash and Cash Equivalents $494,848,031
Cash Equivalents Value Credit Rating
Local Government Investment Pool $88,852,222 AAA
Repurchase Agreements 2,725,879 Not Rated
Mutual and Money Market Funds 12,825,109 Not Rated
Total $104,403,210
28
S&P
Investment Credit Less than 1- 5 6 -10
Type Rating 1 year Years Years 6/30/2025
LGIP EM AAA $ 3,998,065 $ - $ - $ 3,998,065
Agency Mortgage
AA+ 1,975,526 6,233,499 - 8,209,025
Backed Securities
Corporate Bonds AA+ - 1,003,530 - 1,003,530
Corporate Bonds AA 1,363,348 1,011,072 - 2,374,420
Corporate Bonds AA- 195,287 3,320,787 - 3,516,074
Corporate Bonds A+ 1,388,592 5,403,051 - 6,791,643
Corporate Bonds A 2,632,991 2,349,617 - 4,982,608
Corporate Bonds A- - 1,479,750 - 1,479,750
Corporate Bonds BBB+ - 983,319 1,013,818 1,997,137
Negotiable CDs Not Rated 2,565,333 11,803,070 - 14,368,403
Mutual Funds Not Rated 1,358,443 - - 1,358,443
U.S. Treasury and
N/A 16,101,106 16,511,996 - 32,613,102
Agency Securities
Non-Negotiable CDs Not Rated 3,572,284 3,572,284
Total $ 35,150,975 $50,099,691 $ 1,013,818 $ 86,264,484
Fair Value Measurement
The following disclosures are made in accordance with GASB Statement 72 Fair Value Measurement
and Application. This standard sets forth the framework for measuring fair value and provides a fair
value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The
three levels of fair value hierarchy under GASB 72 are described as follows:
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a
government can access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an
asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
Fair Value Measurement Using: Quoted Prices Significant Significant
In Active Other Other
Markets for Observable Unobservable
Identical Assets Inputs Inputs
Level 1 Level 2 Level 3
Asset Backed Securities - $ 8,209,025 -
Corporate Bonds - 22,145,162 -
Negotiable Certificates of Deposit - 14,368,403 -
Mutual and Money Market Funds $12,825,109 1,358,443 -
U.S. Treasury and Agency Securities 32,613,102 - -
Repurchase Agreements - 2,725,879 -
Total Investments measured at Fair Value $45,438,211 $48,806,912 -
29
Investments measured at NAV are as follows:
Balance at Unfunded Redemption Redemption
6/30/2025 Commitment Frequency Notice Period
LGIP-EM $3,998,065 N/A Weekly 5 days
Community College Foundations
The Foundations had the following cash, cash equivalents and investments as of June 30, 2025:
Cash and cash equivalents $ 46,297,113
Investments:
Stocks $ 157,975,203
Mutual & Money Market Funds 131,623,216
Corporate bonds 39,794,936
Mortgage-Backed Securities 26,811,500
Investments in Real Estate 1,222,605
UVA Investment Management Company 18,135,763
US Government Securities 12,760,424
Fixed Income Funds 14,391,993
Asset Backed Securities 7,277,738
Municipal Securities 8,332,554
Investments in Limited Partnerships 3,337,507
Certificates of Deposit 8,616,332
Cash Surrender Value Life Insurance 606,755
Alternative Investments 6,546,697
Other 446,262
Total investments $437,879,485
Some VCCS foundations had balances in bank and savings institutions that exceeded federally-
insured limits. However, the foundations do not believe this poses any significant credit risk.
3. RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS
The following receivables included an allowance for doubtful accounts at June 30, 2025:
Gross accounts receivable:
Tuition and fees $22,568,514
Auxiliary enterprises 626,194
Federal, state, local and nongovernmental
grants, gifts, contracts 4,598,015
Lease* 388,523
Other activities 969,253
Total gross accounts receivable $29,150,499
Less: Allowance for doubtful accounts (1,508,738)
Net accounts receivable $27,641,761
Gross Loans and notes receivable $ 498,782
Less: Allowance for doubtful accounts (17,860)
Net loans and notes receivable $ 480,922
30
*The System leases out cell tower space, Initial terms are typically 5 to 10 years and may contain
rent escalation clauses, revenue share, and renewal options ranging from 1 to 10-year intervals.
Discount rates on all current leases are 3.25%.
The lease and interest receivable for fiscal years subsequent to June 30, 2025, are as follows:
Year Lease Receivable Interest Receivable Total
2026 $ 137,750 $ 10,412 $ 148,162
2027 136,844 6,899 143,743
2028 96,025 3,170 99,195
2029 17,904 440 18,344
2030 -
2031-2035 - - -
Total $ 388,523 $ 20,921 $ 409,444
Receivables not expected to be collected within one year are $371,794 in accounts, notes, and loans
receivable.
Community College Foundations
The foundations have the following receivables as of June 30, 2025:
Gross accounts receivable $4,167,362
Less: Allowance for doubtful accounts -
Net accounts receivable $4,167,362
Pledges receivable:
Due in one year $4,693,864
Due in 1-5 years 3,926,271
Due in more than 5 years 939,046
Less: Allowance for doubtful accounts (134,471)
Present value discount (329,973)
Net pledges receivable
$9,094,737
Gross loans, notes and interest receivable $384,714
Less: Allowance for doubtful accounts -
Net loans and notes receivable $384,714
All accounts and notes receivable are expected to be collected within one year.
4. COMMONWEALTH EQUIPMENT AND CAPITAL PROJECT REIMBURSEMENT PROGRAMS
The Commonwealth has established several programs to provide state-supported institutions of
higher education with bond proceeds for financing the acquisition and replacement of instructional
equipment and facilities During fiscal year 2025, funding has been provided to the VCCS from three
programs: general obligation bonds 9(b), 21st Century, and Equipment Trust Fund managed by the
Virginia College Building Authority (VCBA). The VCBA issues bonds and uses the proceeds to
31
reimburse the VCCS and other institutions of higher education for expenses incurred in the
acquisition of equipment and facilities.
The line items, Due from Commonwealth, Current and Noncurrent, on the Statement of Net Position,
for the year ended June 30, 2025, represent pending reimbursements from the following programs:
Due from Commonwealth, Current
VCBA Equipment Trust Fund program $7,740,543
st
VCBA 21 Century program 2,504,465
General Obligation Bond program 0
Other 519,749
Total Due from Commonwealth, Current $10,764,757
Due from Commonwealth, Noncurrent
VCBA 21st Century program
$2,853,747
Total Due from Commonwealth, Noncurrent $2,853,747
5. CAPITAL ASSETS
Changes in capital assets for the year ended June 30, 2025 are as follows:
32
Beginning Ending
Balance Increases Decreases Balance
Nondepreciable capital assets:
Land/Land Improvements $ 72,468,431 $ 164,773 $ - $ 72,633,204
Inexhaustible Works of Art 148,174 - - 148,174
Construction in Progress 98,241,633 58,204,262 (37,095,018) 119,350,877
Total capital assets not being depreciated $ 170,858,238 $ 58,369,035 $ (37,095,018) $ 192,132,255
Depreciable capital assets:
Buildings $ 1,699,649,908 $ 32,109,685 $ - $ 1,731,759,593
Infrastructure 92,383,793 7,108,171 (155,920) 99,336,044
Equipment 286,891,046 46,428,792 (12,524,244) 320,795,594
Land Improvements 117,892,081 1,835,517 (652,187) 119,075,411
Library Books 37,291,708 676,249 (2,620,653) 35,347,304
Intangible 15,705,659 86,723 - 15,792,382
Right to use intangible assets (GASB 87)
Land Improvements 73,491 - - 73,491
Buildings 52,694,788 38,000,208 (9,945,263) 80,749,733
Equipment 1,075,446 445,621 (335,886) 1,185,181
Right to use intangible assets (GASB 96) 28,475,969 1,024,927 (702,646) 28,798,250
Total other capital asets $ 2,332,133,889 $ 127,715,893 $ (26,936,799) $ 2,432,912,983
Less accumulated depreciation for
Buildings $ (617,085,204) $ (35,708,543) - $ (652,793,747)
Infrastructure (58,325,898) (3,574,764) 35,467 (61,865,195)
Equipment (195,943,679) (24,311,022) 11,155,559 (209,099,142)
Land Improvements (81,453,223) (3,891,907) - (85,345,130)
Library Books (34,807,293) (936,483) 2,593,195 (33,150,581)
Intangible (14,322,076) (968) - (14,323,044)
Right to use intangible assets (GASB 87) - -
Land Improvements (30,943) - - (30,943)
Buildings (25,496,462) (13,145,051) 8,640,341 (30,001,172)
Equipment (638,431) (274,729) 180,363 (732,797)
Right to use intangible assets (GASB 96) (10,190,329) (5,491,411) 446,162 (15,235,578)
Total accumulated depreciation $ (1,038,293,538) $ (87,334,878) $ 23,051,087 $ (1,102,577,329)
Other capital assets, net $ 1,293,840,351 $ 40,381,015 $ (3,885,712) $ 1,330,335,654
Total capital assets, net $ 1,464,698,589 $ 98,750,050 $ (40,980,730) $ 1,522,467,909
Community College Foundations
The foundations had the following capital assets as of June 30, 2025:
Non-depreciable capital assets:
Land $14,214,002
Construction in Process 15,524,171
Works of art 80,977
Total nondepreciable capital assets $29,819,150
33
Depreciable capital assets:
Buildings $61,048,341
Equipment 3,475,848
Site improvement/Infrastructure 7,589,254
Intangible assets 8,570,795
Total depreciable capital assets $80,684,238
Less: Accumulated depreciation (13,752,256)
Depreciable capital assets, net $66,931,982
Total capital assets, net $96,751,132
6. ACCOUNTS AND RETAINAGE PAYABLE
Accounts and retainage payable consisted of the following as of June 30, 2025:
VCCS Foundations
Vendors payable $48,637,978 $5,616,390
Students payable 1,926,684 -
Retainage payable 5,037,152 -
Taxes payable 16,302 -
Total $55,618,116 $5,616,390
7. COMMITMENTS
At June 30, 2025, the VCCS was committed to contracts totaling $308,049,322 of which
$164,017,846 was unexpended. The System held $5,037,152 as retainage payable on construction
and architectural/engineering contracts for work performed. The retainage payable will be remitted to
the various contractors upon satisfactory completion of the construction projects.
8. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
The composition of deferred outflows of resources on June 30, 2025, is summarized as follows:
Deferred Loss on Debt Defeasance $ 907,323
Pension 112,525,964
Post Employment Benefit 24,024,508
Total Deferred Outflows of Resources $137,457,795
The composition of deferred inflows of resources on June 30, 2025, is summarized as follows:
Deferred Gain on Debt Refunding $ 349,400
Leases 409,384
Pension 61,795,295
Post Employment Benefit 31,584,941
Total Deferred Inflows of Resources $94,139,020
9. LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2025 is as follows:
34
Amounts Due
Beginning Ending Within One
Debt: Balance Additions Reductions Balance Year
Leases (GASB 87) $ 28,849,999 $ 38,645,188 $ (13,712,226) $ 53,782,961 $ 7,581,203
Leases (GASB 96) 17,808,792 620,739 (5,581,224) 12,848,307 5,388,114
Notes Payable:
Installment purchases 237,340 - (108,586) 128,754 112,912
Pooled bonds 66,100,166 - (8,258,193) 57,841,973 7,740,000
Total bonds, notes and capital leases $ 112,996,297 $ 39,265,927 $ (27,660,229) $ 124,601,995 $ 20,822,229
Other liabilities:
Compensated absences $ 44,964,609 $ 983,433 $ - $ 45,948,042 $ 23,566,263
Pension obligations 371,098,915 - (18,321,931) 352,776,984 -
Postemployment benefits 88,759,402 141,708 (8,373,484) 80,527,626 2,189,593
Federal loan program contributions 1,069,483 - (214,096) 855,387 -
Total other liabilities $ 505,892,409 $ 1,125,141 $ (26,909,511) $ 480,108,039 $ 25,755,856
Total long-term liabilities $ 618,888,706 $ 40,391,068 $ (54,569,740) $ 604,710,034 $ 46,578,085
In prior fiscal years, a portion of the VCBA Pooled Bonds, of which the VCCS has a share, has been
defeased. Details relating to the current and prior years’ defeasances are reported in the Commonwealth’s
Annual Comprehensive Financial Report.
Community College Foundations
The foundations had the following long-term liabilities as of June 30, 2025:
Notes payable $35,558,228
Trust & Annuity Obligations 51,406
Lease Obligations 9,778,949
Total long-term liabilities 45,388,583
Less current portion 1,448,188
Total long-term liabilities $43,940,395
10. NOTES PAYABLE
Notes payable represent agreements with the Virginia College Building Authority (VCBA) to finance
the following projects:
Student Center for Tidewater Community College Norfolk Campus - The remaining balance is to be
repaid in annual installments ranging from $860,000 to $1,095,000 with coupon rates ranging from
1.33% to 5.00% payable semiannually. The final installment of $870,000 is due September 1, 2030.
The outstanding balance at June 30, 2025, is $6,117,077.
Workforce Training and Technology Center for J. Sargeant Reynolds Community College - The
remaining balance is to be repaid in annual installments ranging from $60,000 to $70,000 with
coupon rates ranging from 3.00% to 5.00% payable semiannually. The final installment of $70,000 is
35
due September 1, 2029. The outstanding balance at June 30, 2025, is $352,135.
Student Center for Tidewater Community College Virginia Beach Campus – The remaining balance
is to be repaid in annual installments ranging from $490,000 to $585,000 with coupon rates ranging
from 5.00% to 5.50% payable semiannually. The final installment of $585,000 is due September 1,
2030. The outstanding balance at June 30, 2025, is $3,808,570.
Student Center for Tidewater Community College Chesapeake Campus – The remaining balance is
to be repaid in annual installments ranging from $345,000 to $415,000 with coupon rates ranging
from 5.00% to 5.50% payable semiannually. The final installment of $415,000 is due September 1,
2030. The outstanding balance at June 30, 2025, is $2,693,632.
Student Center for Tidewater Community College Chesapeake Campus (17625); Student center for
Virginia Campus (17067) - The remaining balance is to be repaid in annual installments ranging from
$1,455,000 to $1,715,000 with coupon rates ranging from 1.53% to 5.00% payable semiannually.
The final installment for the Virginia Beach Student Center of $805,000 is due on September 1, 2031.
The final installment for the Chesapeake Student Center of $560,000 is due September 1, 2031, for
17787. The outstanding balance at June 30, 2025, is $10,479,279.
Student Center for Blue Ridge Community College Weyers Cave Campus - The remaining balance is
to be repaid in annual installments ranging from $550,000 to $660,000 with coupon rates ranging
from 5.00% to 5.50% payable semiannually. The final installment of $660,000 is due September 1,
2030. The outstanding balance at June 30, 2025, is $3,730,719.
Student Center for Tidewater Community College Portsmouth Campus - The remaining balance is to
be repaid in annual installments ranging from $890,000 to $1,065,000 with coupon rates ranging
from 5.00% to 5.50% payable semiannually. The final installment of $ 1,065,000 is due September 1,
2030. The outstanding balance at June 30, 2025, is $6,035,561.
Student Center for Virginia Western Community College - The remaining balance is to be repaid in
annual installments ranging from $440,000 to $470,000 with coupon rates ranging from 0.61% to
1.71% payable semiannually. The final installment of $470,000 is due September 1, 2031. The
outstanding balance at June 30, 2025, is $3,150,000.
Parking garage for Germanna Community College - The remaining balance is to be repaid in annual
installments ranging from $380,000 to $405,000 with coupon rates ranging from 0.61% to 1.71%
payable semiannually. The final installment of $405,000 is due September 1, 2031. The outstanding
balance at June 30, 2025, is $2,735,000.
Parking garage for Brightpoint Community College (now Brightpoint Community College) Midlothian
Campus - The remaining balance is to be repaid in annual installments ranging from $400,000 to
$440,000 with coupon rates ranging from 0.48% to 1.81% payable semiannually. The final
installment of $440,000 is due September 1, 2032. The outstanding balance at June 30, 2025, is
$3,335,000.
Parking garage for Tidewater Community College Chesapeake Campus - The remaining balance is
to be repaid in annual installments ranging from $1,490,000 to $1,625,000 with coupon rates ranging
from 0.61% to 1.81% payable semiannually. The final installment of $1,625,000 is due September 1,
2032. The outstanding balance at June 30, 2025, is $12,370,000.
Parking garage for Blue Ridge Community College Weyers Cave Campus - The remaining balance is
to be repaid in annual installments ranging from $285,000 to $325,000 with coupon rates ranging
from 0.61% to 2.01% payable semiannually. The final installment of $325,000 is due September 1,
2034. The outstanding balance at June 30, 2025, is $3,035,000.
36
The Virginia Community College System’s general revenues, not otherwise obligated, secure these
notes.
Scheduled maturities of notes payable are as follows:
Total
Year Ending June 30 Principal Interest Payments
2026 $ 7,740,000 $ 1,603,277 $ 9,343,277
2027 7,935,000 1,365,816 9,300,816
2028 8,130,000 1,103,672 9,233,672
2029 8,395,000 809,577 9,204,577
2030 8,385,000 509,418 8,894,418
2031-2035 15,700,000 391,888 16,091,888
Sub Totals $ 56,285,000 $ 5,783,648 $ 62,068,648
Plus Bond Premium 1,556,973 - 1,556,973
Totals $ 57,841,973 $ 5,783,648 $ 63,625,621
11. LEASE COMMITMENTS, SUBSCRIPTION-BASED INFORMATION TECHNOLOGY
AGREEMENTS, AND INSTALLMENT PURCHASES
The System leases certain office space, academic space, laboratory space, and equipment. Initial
terms are typically 3 to 15 years and may contain rent escalation clauses and renewal options
ranging from 1 to 10-year intervals. Discount rates ranging from 1.7% to 5.5% were used.
The future minimum lease obligations for fiscal years subsequent to June 30, 2025, are as follows:
GASB 87
Year Liability Reduction Interest Total
2026 $ 7,581,203 $ 2,805,412 $ 10,386,615
2027 7,045,907 2,511,495 9,557,402
2028 6,474,588 2,214,888 8,689,476
2029 4,918,758 1,954,717 6,873,475
2030 4,818,194 1,731,520 6,549,714
2031+ 22,944,311 12,222,676 35,166,987
Total $ 53,782,961 $ 23,440,708 $ 77,223,669
Future obligations under Subscription-Based Information Technology Agreements for fiscal years
subsequent to June 30, 2025, are as follows:
37
GASB 96
Year Liability Reduction Interest Total
2026 $ 5,388,114 $ 742,467 $ 6,130,581
2027 3,111,346 422,107 3,533,453
2028 2,177,386 251,349 2,428,735
2029 2,164,427 125,379 2,289,806
2030 7,034 580 7,614
Total $ 12,848,307 $ 1,541,882 $ 14,390,189
A summary of future obligations under lease agreements as of June 30, 2025, follows:
Year Ending Installment Purchase Short Term Lease Short Term Lease
June 30 Obligations Obligations(GASB87) Obligations(GASB96)
2026 117,768 $ 469,414 $ 420,477
2027 8,189 246,787 652
2028 8,189 149,088 311
2029 - 108,519 0
2030+ - 57,309 2,801
Total obligation and gross
minimum lease payments $ 134,146 $ 1,031,117 $ 424,241
Less: Interest (5,392) - -
Present value of minimum lease
payments $ 128,754 $ 1,031,117 $ 424,241
The System is committed under various lease and installment purchase agreements. The cost of
assets capitalized under installment purchase agreements totals $2,487,507. Rent expenses under
short-term lease agreements amounted to $469,414 for the year. Subscription-Based Information
Technology Agreement expenses amounted to $420,477 for the year.
12. OPERATING EXPENSES BY NATURAL AND FUNCTIONAL CLASSIFICATIONS
VCCS operating expenses for the year ended June 30, 2025 were as follows:
38
Natural Classification
Supplies
Functional Salaries & Depreciation & Services
Classification Benefits Utilities Scholarships Amortization & Other Total
Instruction $ 387,804,675 $ 358,009 $ 15,127,471 $ 66,992,443 $ 59,988,523 $ 530,271,121
Public Service 13,554,822 1,197 279,336 365,539 9,371,260 23,572,154
Academic Support 92,243,432 233,574 555,345 5,562,023 35,304,405 133,898,779
Student Services 110,637,978 407 780,080 2,998,773 14,023,830 128,441,068
Institional Support 154,932,467 530,335 395,950 737,032 64,841,818 221,437,602
Operation & Maintenance 48,322,122 21,302,298 - 6,198,974 105,251,279 181,074,673
Scholarships and Fellowships 123,174 - 179,555,924 - 1,986,465 181,665,563
Auxiliary Enterprises 6,082,594 684,862 31,040 3,451,666 7,277,721 17,527,883
Other Expenses - - - - 12,849 12,849
Total Expenses $ 813,701,264 $ 23,110,682 $ 196,725,146 $ 86,306,450 $ 298,058,150 $ 1,417,901,692
13. STATE APPROPRIATIONS
All Commonwealth unrestricted revenues must be appropriated by the Legislature and are provided
on an annual basis. Unspent balances of these appropriations at the close of the fiscal year revert to
the Commonwealth's General Fund. These reverted funds are eligible for re-appropriation in fiscal
year 2024-25 provided that the VCCS meets financial and administrative standards outlined in the
Code of Virginia.
During the year ended June 30, 2025, the Virginia Community College System received the following
general fund appropriations in accordance with the 2024 – 2025 amended budget Chapter 2,
approved May 13, 2024.
39
Subtractions:
Net Central Accounts Distributions 12,325,330
Carryover (reappropriate) FY24 year end balances 109,206,967
VMSDP waivers 1,297,900
Transfer from SCHEV - VIVA Open Course Grants 71,160
Transfer from SCHEV - FY24 VIVA ILL Allocation 23,691
Tech Talent Investment Program funding 1,272,643
VMSDP waiver payout from SCHEV 3,163,200
Equipment Trust Fund lease payment (NGF) (633,657)
Capital Fee transfers (3,301,665)
Chapter 725 changes in FY2025 operating dollar appropriations 10,003,100
E&G interest earning and credit card rebates 7,025,312
FY2025 employee bonus payment distribution 4,475,654
Transfer of G3 dollars to match a grant from US Dept of Energy - 201 D.8.B 500,000
Reversion (66,725,417)
Philpott manufacturing (1,752,812)
Adjusted Unrestricted Appropriations $ 660,579,932
Other restricted appropriations were $123,078,682 for a total of $783,658,614
14. EQUIPMENT TRUST FUND
The System participates in the Higher Education Equipment Trust Fund (HEETF) of the Virginia
College Building Authority (VCBA). The HEETF provides funds to public colleges and universities for
equipment acquisitions using proceeds from revenue bonds issued for this purpose.
15. DONOR-RESTRICTED ENDOWMENTS
VCCS has two donor-restricted endowments. The net appreciation on investments of donor-restricted
endowments that is available for expenditure by the governing board did not change for the year
ended June 30, 2025. These amounts are reported as restricted expendable net position. Total-
return policy is followed for authorizing and spending investment income.
16. CONTINGENCIES ON GRANTS
The VCCS receives assistance from non-state grantor agencies in the form of grants. Entitlement to
these resources is generally conditional upon compliance with the terms and conditions of grant
agreements. Substantially all grants are subject to financial and compliance audits by the grantors.
All disallowances as a result of these audits become a liability of the VCCS. As of June 30, 2025, the
VCCS estimates that no material liabilities will result from such audits.
17. RETIREMENT PLANS
Virginia Retirement System – General Information about the Pension Plans
40
Plan Description
All full-time, salaried permanent employees of state agencies are automatically covered by the
VRS State Employee Retirement Plan or the VaLORS Retirement Plan upon employment. These
plans are administered by the Virginia Retirement System (the System) along with plans for other
employer groups in the Commonwealth of Virginia. Members earn one month of service credit for
each month they are employed and for which they and their employer pay contributions to VRS.
Members are eligible to purchase prior service, based on specific criteria as defined in the Code
of Virginia, as amended. Eligible prior service that may be purchased includes prior public
service, active military service, certain periods of leave, and previously refunded service.
The System administers three different benefit structures for covered employees in the VRS
State Employee Retirement Plan – Plan 1, Plan 2, and Hybrid; and two different benefit structures
for covered employees in the VaLORS Retirement Plan – Plan 1 and Plan 2. Each of these
benefit structures has different eligibility criteria. The specific information for each plan and the
eligibility for covered groups within each plan are set out in the table below:
41
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
About Plan 1 About Plan 2 About the Hybrid Retirement Plan
Plan 1 is a defined benefit plan. The Same as Plan 1. The Hybrid Retirement Plan
retirement benefit is based on a combines the features of a defined
member’s age, service credit and benefit plan and a defined
average final compensation at contribution plan.
retirement using a formula.
• The defined benefit is based on
a member’s age, service credit
and average final compensation
at retirement using a formula.
• The benefit from the defined
contribution component of the
plan depends on the member
and employer contributions
made to the plan and the
investment performance of
those contributions.
• In addition to the monthly
benefit payment payable from
the defined benefit plan at
retirement, a member may start
receiving distributions from the
balance in the defined
contribution account, reflecting
the contributions, investment
gains or losses, and any
required fees.
42
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Eligible Members
Eligible Members Eligible Members
Employees are in Plan 2 if their
Employees are in Plan 1 if their Employees are in the Hybrid
membership date is from July 1,
membership date is before July 1, Retirement Plan if their membership
2010, to December 31, 2013, and
2010, they were vested as of date is on or after January 1, 2014.
they have not taken a refund, or
January 1, 2013, and they have not This includes:
their membership date is prior to
taken a refund. • Full-time permanent, salaried
July 1, 2010, and they were not
vested as of January 1, 2013. state employees.*
Hybrid Opt-In Election • Members in Plan 1 or Plan 2 who
VRS Plan 1 members were allowed elected to opt into the plan during
Hybrid Opt-In Election
to make an irrevocable decision to the election window held January
Same as Plan 1.
opt into the Hybrid Retirement Plan 1-April 30, 2014; the plan’s
during a special election window effective date for opt-in members
held January 1 through April 30, was July 1, 2014
2014.
*Non-Eligible Members
The Hybrid Retirement Plan’s Some employees are not eligible to
effective date for eligible Plan 1 participate in the Hybrid Retirement
members who opted in was July 1, Plan. They include:
2014. Members of the Virginia Law
Officers’ Retirement System
If eligible deferred members (VaLORS)
returned to work during the election
window, they were also eligible to Those employees eligible for an
opt into the Hybrid Retirement Plan. optional retirement plan (ORP) must
elect the ORP plan or the Hybrid
Retirement Plan. If these members
have prior service under Plan 1 or
Plan 2, they are not eligible to elect
the Hybrid Retirement Plan and
must select Plan 1 or Plan 2 (as
applicable) or ORP.
43
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Retirement Contributions Retirement Contributions Retirement Contributions
State employees, excluding state Same as Plan 1. A member’s retirement benefit is
elected officials, and optional funded through mandatory and
retirement plan participants, voluntary contributions made by the
contribute 5% of their compensation member and the employer to both
each month to their member the defined benefit and the defined
contribution account through a contribution components of the plan.
pretax salary reduction. Member Mandatory contributions are based
contributions are tax-deferred until on a percentage of the employee’s
they are withdrawn as part of a creditable compensation and are
retirement benefit or as a refund. required from both the member and
The employer makes a separate the employer. Additionally,
actuarially determined contribution members may choose to make
to VRS for all covered employees. voluntary contributions to the
VRS invests both member and defined contribution component of
employer contributions to provide the plan, and the employer is
funding for the future benefit required to match those voluntary
payments. contributions according to specified
percentages.
Service Credit Service Credit Service Credit
Service credit includes active Same as Plan 1. Defined Benefit Component:
service. Members earn service Under the defined benefit
credit for each month they are component of the plan, service
employed in a covered position. It credit includes active service.
also may include credit for prior Members earn service credit for
service the member has purchased each month they are employed in a
or additional service credit the covered position. It also may include
member was granted. A member’s credit for prior service the member
total service credit is one of the has purchased or additional service
factors used to determine their credit the member was granted. A
eligibility for retirement and to member’s total service credit is one
calculate their retirement benefit. It of the factors used to determine
also may count toward eligibility for their eligibility for retirement and to
the health insurance credit in calculate their retirement benefit. It
retirement, if the employer offers the also may count toward eligibility for
health insurance credit. the health insurance credit in
retirement, if the employer offers the
health insurance credit.
Defined Contributions Component:
Under the defined contribution
component, service credit is used to
determine vesting for the employer
contribution portion of the plan.
44
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Vesting Vesting Vesting
Vesting is the minimum length of Same as Plan 1. Defined Benefit Component:
service a member needs to qualify Defined benefit vesting is the
for a future retirement benefit. minimum length of service a
Members become vested when they member needs to qualify for a future
have at least five years (60 months) retirement benefit. Members are
of service credit. Vesting means vested under the defined benefit
members are eligible to qualify for component of the Hybrid Retirement
retirement if they meet the age and Plan when they reach five years (60
service requirements for their plan. months) of service credit. Plan 1 or
Members also must be vested to Plan 2 members with at least five
receive a full refund of their member years (60 months) of service credit
contribution account balance if they who opted into the Hybrid
leave employment and request a Retirement Plan remain vested in
refund. the defined benefit component.
Members are always 100% vested Defined Contributions Component:
in the contributions that they make. Defined contribution vesting refers
to the minimum length of service a
member needs to be eligible to
withdraw the employer contributions
from the defined contribution
component of the plan.
Members are always 100% vested
in the contributions that they make.
Upon retirement or leaving covered
employment, a member is eligible to
withdraw a percentage of employer
contributions to the defined
contribution component of the plan,
based on service.
• After two years, a member
is 50% vested and may
withdraw 50% of employer
contributions.
• After three years, a member
is 75% vested and may
withdraw 75% of employer
contributions.
• After four or more years, a
member is 100% vested
and may withdraw 100% of
employer contributions.
Distributions not required, except as
governed by law.
45
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Calculating the Benefit Calculating the Benefit Calculating the Benefit
The basic benefit is determined See definition under Plan 1. Defined Benefit Component:
using the average final See definition under Plan 1
compensation, service credit and
plan multiplier. An early retirement Defined Contribution Component:
reduction is applied to this amount if The benefit is based on
the member is retiring with a contributions made by the member
reduced benefit. In cases where the and any matching contributions
member has elected an optional
form of retirement payment, an made by the employer, plus net
option factor specific to the option investment earnings on those
chosen is then applied. contributions.
Average Final Compensation Average Final Compensation Average Final Compensation
A member’s average final A member’s average final Same as Plan 2. It is used in the
compensation is the average of the compensation is the average of their retirement formula for the defined
36 consecutive months of highest 60 consecutive months of highest benefit component of the plan.
compensation as a covered
compensation as a covered employee.
employee.
Service Retirement Multiplier Service Retirement Multiplier Service Retirement Multiplier
VRS: The retirement multiplier is a VRS: Same as Plan 1 for service Defined Benefit Component:
factor used in the formula to earned, purchased or granted prior VRS: The retirement multiplier for
determine a final retirement benefit. to January 1, 2013. For non- the defined benefit component is
The retirement multiplier for non- hazardous duty members, the 1.00%.
hazardous duty members is 1.70%. retirement multiplier is 1.65% for For members who opted into the
service credit earned, purchased or Hybrid Retirement Plan from Plan 1
granted on or after January 1, 2013. or Plan 2, the applicable multipliers
for those plans will be used to
calculate the retirement benefit for
service credited in those plans.
VaLORS: The retirement multiplier VaLORS: The retirement multiplier VaLORS: Not applicable.
for VaLORS employees is 1.70% or for VaLORS employees is 2.00%
2.00%. applied to hazardous duty service Defined Contribution Component:
and 1.70% applied to non- Not applicable.
hazardous duty service and no
supplement.
46
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Normal Retirement Age Normal Retirement Age Normal Retirement Age
VRS: Age 65. VRS: Normal Social Security Defined Benefit Component:
retirement age. VRS: Same as Plan 2.
VaLORS: Age 60. VaLORS: Same as Plan 1. VaLORS: Not applicable.
Defined Contribution Component:
Members are eligible to receive
distributions upon leaving
employment, subject to restrictions.
Earliest Unreduced Retirement Earliest Unreduced Retirement Earliest Unreduced Retirement
Eligibility Eligibility Eligibility
VRS: Age 65 with at least five VRS: Normal Social Security Defined Benefit Component:
years (60 months) of service credit retirement age with at least five VRS: Same as Plan 2.
or at age 50 with at least 30 years of years (60 months) of service credit
service credit. or when their age and service equal
90. VaLORS: Not applicable.
VaLORS: Age 60 with at least five
years of service credit or age 50 VaLORS: Same as Plan 1. Defined Contribution Component:
with at least 25 years of service Members are eligible to receive
credit. distributions upon leaving
employment, subject to restrictions.
Earliest Reduced Retirement Earliest Reduced Retirement Earliest Reduced Retirement
Eligibility Eligibility Eligibility
VRS: Age 55 with at least five VRS: Age 60 with at least five Defined Benefit Component:
years (60 months) of service credit years (60 months) of service credit. VRS: Same as Plan 2.
or age 50 with at least 10 years of
service credit.
VaLORS: Same as Plan 1. VaLORS: Not applicable.
VaLORS: Age 50 with at least five
years of service credit. Defined Contribution Component:
Members are eligible to receive
distributions upon leaving
employment, subject to restrictions.
47
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
Cost-of-Living Adjustment Cost-of-Living Adjustment Cost-of-Living Adjustment
(COLA) in Retirement (COLA) in Retirement (COLA) in Retirement
The Cost-of-Living Adjustment The Cost-of-Living Adjustment Defined Benefit Component:
(COLA) matches the first 3% (COLA) matches the first 2% Same as Plan 2.
increase in the Consumer Price increase in the CPI-U and half of
Index for all Urban Consumers any additional increase (up to 2%), Defined Contribution Component:
(CPI-U) and half of any additional for a maximum COLA of 3%. Not applicable.
increase (up to 4%) up to a
maximum COLA of 5%.
Eligibility: Eligibility: Eligibility:
For members who retire with an Same as Plan 1. Same as Plan 1 and Plan 2.
unreduced benefit or with a reduced
benefit with at least 20 years of
service credit, the COLA will go into
effect on July 1 after one full
calendar year from the retirement
date.
For members who retire with a
reduced benefit and who have less
than 20 years of service credit, the
COLA will go into effect on July 1
after one calendar year following the
unreduced retirement eligibility date.
Exceptions to COLA Effective
Dates:
The COLA is effective July 1
following one full calendar year
(January 1 to December 31) under Exceptions to COLA Effective Exceptions to COLA Effective
any of the following circumstances: Dates: Dates:
• The member is within five years of Same as Plan 1. Same as Plan 1 and Plan 2.
qualifying for an unreduced
retirement benefit as of January 1,
2013.
• The member retires on disability.
• The member retires directly from
short-term or long-term disability.
• The member Is involuntarily
separated from employment for
causes other than job
performance or misconduct and is
eligible to retire under the
Workforce Transition Act or the
Transitional Benefits Program.
• The member dies in service and
the member’s survivor or
beneficiary is eligible for a monthly
death-in-service benefit.
The COLA will go into effect on July
1 following one full calendar year
(January 1 to December 31) from
the date the monthly benefit begins. 48
RETIREMENT PLAN PROVISIONS BY PLAN STRUCTURE
PLAN 1 PLAN 2 HYBRID RETIREMENT PLAN
Disability Coverage Disability Coverage Disability Coverage
For members who are eligible to be For members who are eligible to be State employees (including Plan 1
considered for disability retirement considered for disability retirement and Plan 2 opt-ins) participating in
and retire on disability, the and retire on disability, the the Hybrid Retirement Plan are
retirement multiplier is 1.70% on all retirement multiplier is 1.65% on all covered under the Virginia Sickness
service, regardless of when it was service, regardless of when it was and Disability Program (VSDP), and
earned, purchased or granted. earned, purchased or granted. are not eligible for disability
retirement.
Most state employees are covered Most state employees are covered
under the Virginia Sickness and under the Virginia Sickness and Hybrid members (including Plan 1
Disability Program (VSDP), and are Disability Program (VSDP), and are and Plan 2 opt-ins) covered under
not eligible for disability retirement. not eligible for disability retirement. VSDP are subject to a one-year
VSDP members are subject to a VSDP members are subject to a waiting period before becoming
one-year waiting period before one-year waiting period before eligible for non-work-related
becoming eligible for non-work- becoming eligible for non-work disability benefits.
related disability benefits.
related disability benefits.
Purchase of Prior Service Purchase of Prior Service Purchase of Prior Service
Members may be eligible to Same as Plan 1. Defined Benefit Component:
purchase service from previous Same as Plan 1, with the following
public employment, active duty exception:
military service, an eligible period of Hybrid Retirement Plan members
leave or VRS refunded service as are ineligible for ported service.
service credit in their plan. Prior
service credit counts toward vesting, Defined Contribution Component:
eligibility for retirement and the Not applicable.
health insurance credit. Only active
members are eligible to purchase
prior service. Members also may be
eligible to purchase periods of leave
without pay.
Contributions
The contribution requirement for active employees is governed by § 51.1-145 of the Code of
Virginia, as amended, but may be impacted as a result of funding provided to state agencies by
the Virginia General Assembly. Employees are required to contribute 5.00% of their
compensation toward their retirement. Each state agency’s contractually required employer
contribution rate for the fiscal year ended June 30, 2025, was 12.52% of covered employee
compensation for employees in the VRS State Employee Retirement Plan. For employees in
the VaLORS Retirement Plan, the contribution rate was 24.60% of covered employee
compensation. These rates were the final approved General Assembly rates which were based
on actuarially determined rates from an actuarial valuation as of June 30, 2023. The actuarially
determined rates, when combined with employee contributions, were expected to finance the
costs of benefits earned by employees during the year, with an additional amount to finance
49
any unfunded accrued liability. Contributions from VCCS to the VRS State Employee
Retirement Plan were $50,693,653 and $51,053,582 for the years ended June 30, 2025, and
June 30, 2024, respectively. Contributions from the VCCS to the VaLORS Retirement Plan
were $1,821,481 and $1,714,724 for the years ended June 30, 2025 and June 30, 2024,
respectively.
The defined contributions component of the Hybrid plan includes member and employer
mandatory and voluntary contributions. The Hybrid plan member must contribute a mandatory
rate of 1% of their covered payroll. The employer must also contribute a mandatory rate of 1%
of this covered payroll, which totaled $1,831,235 for the year ended June 30, 2025. Hybrid
plan members may also elect to contribute an additional voluntary rate of up to 4% of their
covered payroll; which would require the employer a mandatory additional contribution rate of
up to 2.5%. This additional employer mandatory contribution totaled $2,564,049 for the year
ended June 30, 2025. The total Hybrid plan participant covered payroll totaled $197,009,245 for
the year ended June 30, 2025.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2025, the VCCS reported a liability of $342,633,749 for its proportionate share of
the VRS State Employee Retirement Plan Net Pension Liability and a liability of $10,143,235
for its proportionate share of the VaLORS Retirement Plan Net Pension Liability. The Net
Pension Liability was measured as of June 30, 2024, and the total pension liability used to
calculate the Net Pension Liability was determined by an actuarial valuation performed as of
June 30, 2023, and rolled forward to the measurement date of June 30, 2024. The VCCS’s
proportion of the Net Pension Liability was based on the VCCS’s actuarially determined
employer contributions to the pension plans for the year ended June 30, 2024, relative to the
total of the actuarially determined employer contributions for all participating employers. At
June 30, 2024, the VCCS’ proportion of the VRS State Employee Retirement Plan was 6.96%
as compared to 7.14% at June 30, 2023. At June 30, 2024, the VCCS’ proportion of the
VaLORS Retirement Plan was 1.52% as compared to 1.52% at June 30, 2023.
For the year ended June 30, 2025, the VCCS recognized pension expense of $30,497,867 for
the VRS State Employee Retirement Plan and $1,412,326 for the VaLORS Retirement Plan.
Since there was a change in proportionate share between June 30, 2023, and June 30, 2024,
a portion of the pension expense was related to deferred amounts from changes in proportion
and differences between employer contributions and the proportionate share of employer
contributions. Beginning with the June 30, 2022 measurement date, the difference between
expected and actual contributions is included with the pension expense calculation.
At June 30, 2025, the VCCS reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
50
VRS State Employer Retirement Plan Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 56,203,013 $ 1,889,417
Net difference between projected and actual
earnings on pension plan investments - 44,122,993
Change in assumptions - -
Changes in proportion and differences between
Employer contributions and proportionate share
of contributions 3,078,639 13,933,460
Employer contributions subsequent to the
measurement date 50,693,653 -
Total $ 109,975,305 $ 59,945,870
VaLORS Retirement Plan Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 588,975 $ -
Net difference between projected and actual
earnings on pension plan investments - 792,168
Change in assumptions - -
Changes in proportion and differences between
Employer contributions and proportionate share
of contributions 140,204 142,677
Employer contributions subsequent to the
measurement date 1,821,481 -
Total $ 2,550,660 $ 934,845
$52,515,134 reported as deferred outflows of resources related to pensions resulting from the
VCCS’s contributions subsequent to the measurement date will be recognized as a reduction of
the Net Pension Liability in the fiscal year ending June 30, 2026. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense in future reporting periods as follows:
Year ended June 30
VRS Retirement Plan VaLORS Retirement Plan
FY 2026 $ (16,952,035) $ (110,950)
FY 2027 29,749,697 230,987
FY 2028 (4,825,853) (155,184)
FY 2029 (9,550,606) (170,518)
FY 2030 - -
51
Actuarial Assumptions
The total pension liability for the VRS State Employee Retirement Plan was based on an
actuarial valuation as of June 30, 2023, using the Entry Age Normal actuarial cost method and
the following assumptions, applied to all periods included in the measurement and rolled forward
to the measurement date of June 30, 2024.
Inflation 2.50%
Salary increases, including Inflation 3.50% – 5.35%
Investment rate of return 6.75%, net of pension plan investment expenses,
including inflation
Mortality rates – VRS State Employees
Pre-retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally;females set forward 2 years
Post-retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
females
Post-disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For future
healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement
age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
The total pension liability for the VaLORS Retirement Plan was based on an actuarial valuation
as of June 30, 2023, using the Entry Age Normal actuarial cost method and the following
assumptions, applied to all periods included in the measurement and rolled forward to the
measurement date of June 30, 2024.
52
Inflation 2.50%
Salary increases, including Inflation 3.50% – 5.35%
Investment rate of return 6.75%, net of pension plan investment expenses,
including inflation
Mortality rates – VaLORS Employees
Pre-retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years
Post-retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
The actuarial assumptions used in the June 30, 2022, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020 except the
change in the discount rate, which was based on VRS Board action effective as of July 1, 2021.
Changes to the actuarial assumptions as a result of the experience study and VRS Board action
are as follows:
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables.
retirement healthy, and disabled) For future mortality improvements, replace load with
a modified Mortality Improvement Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at
age 62, and changed final retirement age from 65 to
70
Withdrawal Rates Adjusted rates to better fit experience at each year
age and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Net Pension Liability
The net pension liability (NPL) is calculated separately for each plan and represents that
particular plan’s total pension liability determined in accordance with GASB Statement No. 67,
less that plan’s fiduciary net position. As of June 30, 2024, NPL amounts for the VRS State
Employee Retirement Plan and the VaLORS Retirement Plan are as follows (amounts expressed
in thousands):
53
State
Employee VaLORS
Retirement Retirement
Plan Plan
Total Pension Liability $ 29,769,365 $ 2,743,541
Plan Fiduciary Net Position 24,843,784 2,076,732
Employers’ Net Pension Liability (Asset) $ 4,925,581 $ 666,809
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 83.45% 75.70%
The total pension liability is calculated by the System’s actuary, and each plan’s fiduciary net
position is reported in the System’s financial statements. The net pension liability is disclosed in
accordance with the requirements of GASB Statement No. 67 in the System’s notes to the
financial statements and required supplementary information.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a
log-normal distribution analysis in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension System investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. The target asset allocation and best
estimate of arithmetic real rates of return for each major asset class are summarized in the
following table:
Arithmetic Weighted Average
Long-Term Long-Term Long-Term
Target Asset Expected Rate Expected Rate of
Asset Class (Strategy) Allocation of Return Return*
Public Equity 32.00% 6.70% 2.14%
Fixed Income 16.00% 5.40% 0.86%
Credit Strategies 16.00% 8.10% 1.30%
Real Assets 15.00% 7.20% 1.08%
Private Equity 15.00% 8.70% 1.31%
PIP - Private Investment 1.00% 8.00% 0.08%
Diversifying Strategies 6.00% 5.80% 0.35%
Cash 2.00% 3.00% 0.06%
Leverage (3.00%) 3.50% (0.11%)
Total 100.00% 7.07%
*Expected arithmetic nominal return 7.07%
* The above allocation provides a one-year expected return of 7.07% (includes 2.50% inflation
assumption). However, one-year returns do not take into account the volatility present in each
of the asset classes. In setting the long-term expected return for the System, stochastic
projections are employed to model future returns under various economic conditions. These
results provide a range of returns over various time periods that ultimately provide a median
return of 7.10%, including expected inflation of 2.50%.
54
On June 15, 2023, the VRS Board elected a long-term rate of return of 6.75%, which was
roughly at the 45th percentile of expected long-term results of the VRS fund asset allocation at
that time, providing a median return of 7.14%, including expected inflation of 2.50%.
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that System member contributions will be
made per the VRS Statutes and the employer contributions will be made in accordance with
the VRS funding policy at rates equal to the difference between actuarially determined
contribution rates adopted by the VRS Board of Trustees and the member rate. Through the
fiscal year ending June 30, 2024, the rate contributed by the VCCS for the VRS State
Employee Retirement Plan and the VaLORS Retirement Plan will be subject to the portion of
the VRS Board-certified rates that are funded by the Virginia General Assembly, which was
102% of the actuarially determined contribution rate. From July 1, 2024, on, all agencies are
assumed to continue to contribute 100% of the actuarially determined contribution rates.
Based on those assumptions, the pension plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the VCCS’ Proportionate Share of the Net Pension Liability to Changes in
the Discount Rate
The following presents the VCCS’ proportionate share of the VRS State Employee Retirement
Plan net pension liability using the discount rate of 6.75%, as well as what the VCCS’
proportionate share of the net pension liability would be if it were calculated using a discount
rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than
the current rate:
1.00% Decrease Current Discount 1.00% Increase
(5.75%) Rate (6.75%) (7.75%)
VCCS' proportionate share
of the VRS State
$ 584,039,427 $ 342,633,749 $ 141,314,716
Employee Retirement Plan
Net Pension Liability
The following presents the VCCS’ proportionate share of the VaLORS Retirement Plan net
pension liability using the discount rate of 6.75%, as well as what the VCCS’ proportionate
share of the net pension liability would be if it were calculated using a discount rate that is one
percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:
1.00% Decrease Current Discount 1.00% Increase
(5.75%) Rate (6.75%) (7.75%)
VCCS' proportionate share
$ 15,595,918 $ 10,143,235 $ 5,727,172
of the VaLORS Retirement
Plan Net Pension Liability
55
Pension Plan Fiduciary Net Position
Detailed information about the VRS State Employee Retirement Plan’s Fiduciary Net Position or
the VaLORS Retirement Plan’s Fiduciary Net Position is available in the separately issued VRS
2024 Annual Report. A copy of the 2024 VRS Annual Report may be downloaded from the VRS
website at varetire.org/pdf/publications/2024-annual-report.pdf, or by writing to the System’s Chief
Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500.
Payables to the Pension Plan
The VCCS recognized $65,139,169 as Accrued Payroll Expenses as of June 30, 2025, which
represents hours worked before June 30 but paid after July 1. The portion payable to the VRS for
pension contributions is estimated at $2,281,112.
Optional Retirement Plans
All qualified salaried employees of the VCCS are required to participate in a retirement benefit
plan administered by the Virginia Retirement System (VRS) or in an Optional Retirement Plan
(ORP). Classified employees are eligible to participate in the VRS only, while faculty rank
employees are eligible to participate in either the VRS or the ORP.
Faculty rank employees can participate in a defined contribution plan administered by two
providers other than the VRS. These optional retirement plans are defined contribution plans
offered through TIAA and DCP. This is a defined contribution plan where the retirement benefits
received are based on the employer’s (10.4%) contributions, plus interest and dividends for those
employees who became a member prior to July 1, 2010. For those employees who became a
member on or after July 1, 2010, the employer’s contributions are 8.5% and the employee’s
contributions are 5.0%.
Individual contracts issued under the ORP plan provide for full and immediate vesting of the
VCCS contributions. Total pension costs under this plan were $7,322,463 and $7,123,238 for
years ended June 30, 2025, and 2024, respectively. Contributions to the ORP plan were
calculated using the base salary amount of $79,330,138 and $76,873,303 for fiscal years 2025
and 2024. The VCCS total payroll for fiscal years 2025 and 2024 was $625,350,747 and
$598,312,420 respectively.
Payables to the Optional Retirement Plan
The VCCS recognized $65,139,169 as Accrued Payroll Expenses as of June 30, 2025, which
represents hours worked before June 30 but paid after July 1 or after. The portion payable for
contributions to the optional retirement plans is estimated at $526,661.
Deferred Compensation Plan
Employees of the VCCS are employees of the Commonwealth of Virginia. State employees may
participate in the Commonwealth’s Deferred Compensation Plan. Participating employees can
contribute to the plan each pay period with the Commonwealth matching up to $20 per pay
period. The dollar amount match can change depending on the funding available in the
Commonwealth’s budget. The Deferred Compensation Plan is a qualified defined contribution
plan under Section 401(a) of the Internal Revenue Code. Employer contributions under the
Deferred Compensation Plan were approximately $1,465,685 for fiscal year 2025.
56
18. POST-EMPLOYMENT BENEFITS
Plans administered by VRS
General Information about the State Employee Health Insurance Credit Program
Plan Description
All full-time, salaried permanent employees of state agencies are automatically covered by the
VRS State Employee Health Insurance Credit Program. This plan is administered by the Virginia
Retirement System (the System), along with pension and other OPEB plans, for public employer
groups in the Commonwealth of Virginia. Members earn one month of service credit toward the
benefit for each month they are employed and for which their employer pays contributions to
VRS. The health insurance credit is a tax-free reimbursement in an amount set by the General
Assembly for each year of service credit against qualified health insurance premiums retirees pay
for single coverage, excluding any portion covering the spouse or dependents. The credit cannot
exceed the amount of the premiums and ends upon the retiree’s death.
General Information about the Group Life Insurance Program
Plan Description
All full-time, salaried permanent employees of the state agencies, teachers and employees of
participating political subdivisions are automatically covered by the VRS Group Life Insurance
Program upon employment. This plan is administered by the Virginia Retirement System (the
System), along with pensions and other OPEB plans, for public employer groups in the
Commonwealth of Virginia.
In addition to the Basic Group Life Insurance benefit, members are also eligible to elect additional
coverage for themselves as well as a spouse or dependent children through the Optional Group
Life Insurance Program. For members who elect the optional group life insurance coverage, the
insurer bills employers directly for the premiums. Employers deduct these premiums from
members’ paychecks and pay the premiums to the insurer. Since this is a separate and fully
insured program, it is not included as part of the Group Life Insurance Program OPEB.
General Information about the Line of Duty Act Program
Plan Description
All paid employees and volunteers in hazardous duty positions in Virginia localities and
hazardous duty employees who are covered under the Virginia Retirement System (VRS), the
State Police Officers’ Retirement System (SPORS), or the Virginia Law Officers’ Retirement
System (VaLORS) are automatically covered by the Line of Duty Act Program (LODA). As
required by statute, the Virginia Retirement System (the System) is responsible for managing the
assets of the program. Participating employers made contributions to the program beginning in
FY 2012. The employer contributions are determined by the System’s actuary using anticipated
program costs and the number of covered individuals associated with all participating employers.
General Information about the VRS Disability Insurance Program
Plan Description
All full-time and part-time permanent salaried state employees who are covered under the
Virginia Retirement System (VRS), the State Police Officers’ Retirement System (SPORS), or the
Virginia Law Officers’ Retirement System (VaLORS) hired on or after January 1, 1999, are
automatically covered by the Disability Insurance Program (VSDP) upon employment. The
Disability Insurance Program also covers state employees hired before January 1, 1999, who
elected to transfer to VSDP rather than retain their eligibility to be considered for disability
retirement. This plan is administered by the Virginia Retirement System (the System), along with
pensions and other OPEB plans, for public employer groups in the Commonwealth of Virginia.
The specific information for the VRS administered OPEB programs, including eligibility, coverage
and benefits is set out in the table below:
57
STATE EMPLOYEE HEALTH
INSURANCE CREDIT GROUP LIFE INSURANCE LINE OF DUTY ACT PROGRAM
VSDP PLAN PROVISIONS
PROGRAM (HIC) PLAN PROGRAM PLAN PROVISIONS (LODA) PLAN PROVISIONS
PROVISIONS
Eligible Employees Eligible Employees Eligible Employees Eligible Employees
The State Employee Retiree The Group Life Insurance The eligible employees of the LODA The Virginia Sickness and
Health Insurance Credit Program Program was established July 1, Program include paid employees Disability Program (VSDP), also
was established January 1, 1990, 1960, for state employees, and volunteers in hazardous duty known as the Disability Insurance
for retired state employees teachers and employees of positions in Virginia localities as well Trust Fund was established
covered under VRS, SPORS, political subdivisions that elect as hazardous duty employees who January 1, 1999, to provide
VaLORS and JRS who retire with the program, including the are covered under VRS, SPORS, or short-term and long-term
at least 15 years of service credit. following employers that do not VaLORS. disability benefits for non-work-
participate in VRS for retirement: related and work-related
Eligible employees are enrolled • City of Richmond disabilities.
automatically upon employment. • City of Portsmouth
They include: • City of Roanoke Eligible employees are enrolled
• Full-time and part-time • City of Norfolk automatically upon employment.
permanent salaried state • Roanoke City School Board They include:
employees covered under • Full-time and part-time
VRS, SPORS, VaLORS and Basic group life insurance permanent salaried state
JRS. coverage is automatic upon employees covered under
employment. Coverage ends for VRS, SPORS and VaLORS
employees who leave their (members new to VaLORS
position before retirement following its creation on
eligibility or who take a refund of October 1, 1999, have been
their accumulated retirement enrolled since the inception of
member contributions and VSDP).
accrued interest. • State employees hired before
January 1, 1999, who elected
to transfer to VSDP rather than
retain their eligibility to be
considered for VRS disability
retirement.
Public college and university
faculty members who elect the
VRS defined benefit plan. They
may participate in VSDP or their
institution’s disability program, if
offered. If the institution does not
offer the program or the faculty
member does not make an
election, he or she is enrolled in
VSDP.
58
STATE EMPLOYEE HEALTH
INSURANCE CREDIT GROUP LIFE INSURANCE LINE OF DUTY ACT PROGRAM
VSDP PLAN PROVISIONS
PROGRAM (HIC) PLAN PROGRAM PLAN PROVISIONS (LODA) PLAN PROVISIONS
PROVISIONS
Benefit Amounts Benefit Amounts Benefit Amounts Benefit Amounts
The State Employee Retiree The benefits payable under the LODA provides death and health The Virginia Sickness and
Health Insurance Credit Program Group Life Insurance Program insurance benefits for eligible Disability Program (VSDP)
provides the following benefits for have several components. individuals: provides the following benefits for
eligible employees: • Natural Death Benefit – The • Death: The LODA program death eligible employees:
• At Retirement – For State natural death benefit is equal
benefit is a one-time payment • Leave: Sick, family and
employees, the monthly to the employee’s covered personal leave. Eligible leave
made to the beneficiary or
benefit is $4.25 per year of compensation rounded to the benefits are paid by the
beneficiaries of a covered
service per month with no cap next highest thousand and employer.
individual. Amounts vary as
on the benefit amount. then doubled.
follows: • Short-Term Disability: The
• Disability Retirement – For • Accidental Death Benefit – o $100,000 when a death
State employees, other than The accidental death benefit program provides a short-term
occurs as the direct or disability benefit beginning
state police officers, who is double the natural death proximate result of performing
retire on disability or go on benefit. after a seven-calendar-day
duty as of January 1, 2006, or waiting period from the first
long-term disability under the • Other Benefit Provisions – In after.
Virginia Sickness and addition to the basic natural day of disability. The benefit
o $25,000 when the cause of provides income replacement
Disability Program (VSDP), and accidental death benefits, death is attributed to one of
the monthly benefit is the program provides beginning at 100% of the
the applicable presumptions employee’s pre-disability
$120.00 or $4.25 per year of additional benefits provided and occurred earlier than five
service, whichever is higher. under specific circumstances. income, reducing to 80% and
years after the retirement then 60% based on the period
These include: date.The benefit will be
For State police officer o Accidental of the disability and the length
$75,000 for approved of service of the employee.
employees with a non-work- dismemberment benefit presumptive deaths occurring
related disability who retire on o Seatbelt benefit Short-term disability benefits
on or after January 1, 2025 are paid by the employer.
disability or go on long-term o Repatriation benefit o An additional $20,000 benefit
disability under the Virginia o Felonious assault benefit • Long-Term Disability (LTD):
is payable when certain
Sickness and Disability o Accelerated death benefit members of the National The program provides a long-
Program (VSDP) the monthly option Guard and U.S. military term disability benefit
benefit is $120.00 or $4.25 beginning after 125 workdays
reserves are killed in action in
per year of service, whichever any armed conflict on or after of short-term disability and
is higher. October 7, 2001. continuing until the employee
reaches his or her normal
For State police officers with • Health Insurance: The LODA retirement age. The benefit
a work-related disability, there program provides health provides income replacement
is no benefit provided under insurance benefits. of 60% of the employee’s pre-
the State Employee Retiree • The health insurance disability income. If an
Health Insurance Credit benefits are managed employee becomes disabled
Program if the premiums are through the Virginia within five years of his or her
being paid under the Virginia Department of Human normal retirement age, the
Line of Duty Act. However, Resource Management employee will receive up to
they may receive the credit (DHRM). The health five years of VSDP benefits,
for premiums paid for other benefits are modeled after provided he or she remains
qualified health plans. the State Employee Health medically eligible. Long-term
Benefits Program plans disability benefits are paid for
and provide consistent, by the Virginia Disability
premium-free continued Insurance Program (VSDP)
health plan coverage for OPEB Plan.
LODA-eligible disabled • Income Replacement
individuals, survivors and Adjustment: The program
family members.
provides for an income
replacement adjustment to
80% for catastrophic
conditions.
• VSDP Long-Term Care Plan:
The program also includes a
self-funded long-term care
plan that assists with the cost
of covered long-term care
services.
59
STATE EMPLOYEE HEALTH
INSURANCE CREDIT GROUP LIFE INSURANCE LINE OF DUTY ACT PROGRAM
VSDP PLAN PROVISIONS
PROGRAM (HIC) PLAN PROGRAM PLAN PROVISIONS (LODA) PLAN PROVISIONS
PROVISIONS
Plan Notes: Plan Notes:
• The monthly Health • Employees hired or rehired on
Insurance Credit benefit or after July 1, 2009, must
cannot exceed the satisfy eligibility periods before
individual’s premium amount. becoming eligible for non-
• Employees who retire after work-related short-term
being on long-term disability disability benefits and certain
under VSDP must have at income-replacement levels.
least 15 years of service • A state employee who is
credit to qualify for the Health approved for VSDP benefits on
Insurance Credit as a retiree. or after the date that is five
years prior to his or her normal
retirement date is eligible for
up five years of VSDP
benefits.
• Employees on work-related
short-term disability receiving
only a workers’ compensation
payment may be eligible to
purchase service credit for this
period if retirement
contributions are not being
withheld from the workers’
compensation payment. The
rate will be based on 5.00% of
the employee’s compensation.
Cost-of-Living Adjustment
Reduction in Benefit Amounts (COLA)
The benefit amounts provided to • During periods an employee
members covered under the receives long-term disability
Group Life Insurance Program benefits, the LTD benefit may
are subject to a reduction factor. be increased annually by an
The benefit amount reduces by amount recommended by the
25% on January 1 following one actuary and approved by the
calendar year of separation. The Board.
benefit amount reduces by an o Plan 1 employees vested as
additional 25% on each of 1/1/2013 – 100% of the
subsequent January 1 until it VRS Plan 1 COLA (The first
reaches its original value. 3% increase in the
Consumer Price Index for all
Minimum Benefit Amount and Urban Consumers (CPI-U)
Cost-of-Living Adjustment and half of any additional
(COLA) increase (up to 4%) up to a
maximum COLA of 5%).
For covered members with at o Plan 1 employee non-vested
least 30 years of service credit, as of 1/1/2013, Plan 2 and
there is a minimum benefit Hybrid Plan employees –
100% of the VRS Plan 2
payable under the Group Life
and Hybrid COLA (The first
Insurance Program. The 2% increase in the
minimum benefit was set at Consumer Price Index for all
Urban Consumers (CPI-U)
$8,000 by statute in 2015. This
and half of any additional
will be increased annually based increase (up to 2%) up to a
on the VRS Plan 2 cost-of-living maximum COLA of 3%).
60
STATE EMPLOYEE HEALTH
INSURANCE CREDIT GROUP LIFE INSURANCE LINE OF DUTY ACT PROGRAM
VSDP PLAN PROVISIONS
PROGRAM (HIC) PLAN PROGRAM PLAN PROVISIONS (LODA) PLAN PROVISIONS
PROVISIONS
adjustment calculation. The • For participating full-time
minimum benefit adjusted for the employees taking service
COLA was $9,532 as of June 30, retirement, the creditable
compensation may be
2025.
increased annually by an
amount recommended by the
actuary and approved by the
Board, from the date of the
commencement of the
disability to the date of
retirement.
o 100% of the increase in the
pay over the previous plan
year for continuing VSDP
members in the State,
SPORS and VaLORS
Plans, with a maximum
COLA of 4.00%.
• For participating full-time
employees receiving
supplemental (work-related)
disability benefits, the
creditable compensation may
be increased annually by an
amount recommended by the
actuary and approved by the
Board, from the date of the
commencement of the
disability to the date of
retirement.
o 100% of the increase
in the pay over the
previous plan year for
continuing VSDP
members in the State,
SPORS and VaLORS
Plans, with a maximum
COLA of 4.00%.
Contributions
The contribution requirement for active employees in the VRS State Employee Health Insurance
Credit Program is governed by §51.1-1400(D) of the Code of Virginia, as amended, but may be
impacted as a result of funding provided to state agencies by the Virginia General Assembly.
Each state agency’s contractually required employer contribution rate for the year ended June 30,
2025, was 1.12% of covered employee compensation for employees in the VRS State Employee
Health Insurance Credit Program. This rate was the approved General Assembly which was
based on an actuarially determined rate from an actuarial valuation as of June 30, 2023. The
actuarially determined rate was expected to finance the costs of benefits earned by employees
during the year, with an additional amount to finance any unfunded accrued liability. Contributions
from the VCCS to the VRS State Employee Health Insurance Credit Program were $5,457,032
and $5,115,661 for the years ended June 30, 2025 and June 30, 2024, respectively.
In June 2024, the Commonwealth made a special contribution of approximately $52.8 million
which was applied to the Health Insurance Credit Plan for state employees. This special payment
was authorized by Chapter 2 of the Acts of Assembly of 2022, Special Session I, as amended by
Chapter 1, 2024 Acts of Assembly, Special Session 1, and is classified as a special employer
61
contribution. Our proportionate share is reflected in “Other nonoperating revenue (expense)” of
our financial statements.
The contribution requirements for the Group Life Insurance Program are governed by §51.1-506
and § 51.1-508 of the Code of Virginia, as amended, but may be impacted as a result of funding
provided to state agencies and school divisions by the Virginia General Assembly. The total rate
for the Group Life Insurance Program was 1.18% of covered employee compensation. This was
allocated into an employee and an employer component using a 60/40 split. The employee
component was 0.71% (1.18% X 60%) and the employer component was 0.47% (1.18% X 40%).
Employers may elect to pay all or part of the employee contribution, however the employer must
pay all of the employer contribution. Each employer’s contractually required employer contribution
rate for the year ended June 30, 2025, was 0.47% of covered employee compensation. This rate
was the final approved General Assembly rate which was based on an actuarially determined rate
from an actuarial valuation as of June 30, 2023. The actuarially determined rate, when combined
with employee contributions, was expected to finance the costs of benefits payable during the
year, with an additional amount to finance any unfunded accrued liability. Contributions to the
Group Life Insurance Program from the VCCS were $2,253,638 and $2,410,438 for the years
ended June 30, 2025, and June 30, 2024, respectively.
The contribution requirements for the LODA Program are governed by §9.1-400.1 of the Code of
Virginia, as amended, but may be impacted as a result of funding provided to state agencies by
the Virginia General Assembly. Each employer’s contractually required employer contribution
rate for the LODA Program for the year ended June 30, 2025, was $1,015.00 per covered full-
time-equivalent employee. This rate was based on an actuarially determined rate from an
actuarial valuation as of June 30, 2024, and represents the pay-as-you-go funding rate and not
the full actuarial cost of the benefits under the program. The actuarially determined pay-as-you-
go rate was expected to finance the costs and related expenses of benefits payable during the
year. Contributions to the LODA Program from the VCCS were $96,394 and $87,238 for the
years ended June 30, 2025 and June 30, 2024, respectively.
The contribution requirements for the Disability Insurance Program (VSDP) are governed by
§51.1-1140 of the Code of Virginia, as amended, but may be impacted as a result of funding
provided to state agencies by the Virginia General Assembly. Each employer’s contractually
required employer contribution rate for the Disability Insurance Program (VSDP) for the year
ended June 30, 2025, was 0.50% of covered employee compensation. This rate was General
Assembly approved rate which was based on an actuarially determined rate from an actuarial
valuation as of June 30, 2023. The actuarially determined rate was expected to finance the costs
of benefits payable during the year, with an adjustment to amortize the accrued OPEB assets.
Contributions to the Disability Insurance Program (VSDP) from the VCCS were $2,020,582 and
$2,297,752 for the years ended June 30, 2025 and June 30, 2024, respectively.
State Employee Health Insurance Credit Program OPEB Liabilities, State Employee Health
Insurance Credit Program OPEB Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to State Employee Health Insurance Credit Program
OPEB
At June 30, 2025, the VCCS reported a liability of $35,345,060 for its proportionate share of the
VRS State Employee Health Insurance Credit Program Net OPEB Liability. The Net VRS State
Employee Health Insurance Credit Program OPEB Liability was measured as of June 30, 2024
and the total VRS State Employee Health Insurance Credit Program OPEB Liability used to
calculate the Net VRS State Employee Health Insurance Credit Program OPEB Liability was
determined by an actuarial valuation performed as of June 30, 2023, and rolled forward to the
measurement date of June 30, 2024. The VCCS’ proportion of the Net VRS State Employee
Health Insurance Credit Program OPEB Liability was based on the VCCS’ actuarially determined
employer contributions to the VRS State Employee Health Insurance Credit Program OPEB plan
62
for the year ended June 30, 2024, relative to the total of the actuarially determined employer
contributions for all participating state employers. At June 30, 2024 the VCCS’ proportion of the
VRS State Employee Health Insurance Credit Program was 4.98% as compared to 5.14% at
June 30, 2023.
For the year ended June 30, 2025, the VCCS recognized VRS State Employee Health Insurance
Credit Program OPEB expense of $1,611,612. Since there was a change in proportionate share
between measurement dates, a portion of the VRS State Employee Health Insurance Credit
Program Net OPEB expense was related to deferred amounts from changes in proportionate
share and differences between actual and expected contributions.
GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to the Group Life Insurance Program OPEB
At June 30, 2025, the VCCS reported a liability of $19,701,044 for its proportionate share of the
Net GLI OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2024, and the
total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an
actuarial valuation performed as of June 30, 2023, and rolled forward to the measurement date
of June 30, 2024. The VCCS’ proportion of the Net GLI OPEB Liability was based on the VCCS’
actuarially determined employer contributions to the Group Life Insurance Program for the year
ended June 30, 2024, relative to the total of the actuarially determined employer contributions for
all participating employers. At June 30, 2024, the VCCS proportion was 1.77% as compared to
1.79% at June 30, 2023.
For the year ended June 30, 2025, the VCCS recognized GLI OPEB expense of ($296,184).
Since there was a change in proportionate share between measurement dates, a portion of the
GLI OPEB expense was related to deferred amounts from changes in proportion.
Line of Duty Act Program (LODA) OPEB Liabilities, LODA OPEB Expense, and Deferred
Outflows of Resources and Deferred Inflows of Resources Related to LODA OPEB
At June 30, 2025, the VCCS reported a liability of $2,275,297 for its proportionate share of the
Net LODA OPEB Liability. The Net LODA OPEB Liability was measured as of June 30, 2024,
and the total LODA OPEB Liability used to calculate the Net LODA OPEB Liability was
determined by an actuarial valuation performed as of June 30, 2023, and rolled forward to the
measurement date of June 30, 2024. The VCCS’ proportion of the Net LODA OPEB Liability
was based on the VCCS’ actuarially determined pay-as-you-go employer contributions to the
LODA OPEB plan for the year ended June 30, 2024, relative to the total of the actuarially
determined pay-as-you-go employer contributions for all participating employers. At June 30,
2024, the VCCS’ proportion was 0.58% as compared 0.50% at June 30, 2023.
For the year ended June 30, 2025, the VCCS recognized LODA OPEB expense of $315,306.
Since there was a change in proportionate share between measurement dates, a portion of the
LODA OPEB expense was related to deferred amounts from changes in proportion.
Disability Insurance Program (VSDP) OPEB Liabilities (Assets), VSDP OPEB Expense, and
Deferred Outflows of Resources and Deferred Inflows of Resources Related to VSDP
OPEB
At June 30, 2025, the VCCS reported a liability (asset) of ($23,801,888) for its proportionate
share of the Net VSDP OPEB Liability (Asset). The Net VSDP OPEB Liability (Asset) was
measured as of June 30, 2024, and the total VSDP OPEB liability used to calculate the Net
VSDP OPEB Liability (Asset) was determined by an actuarial valuation as of June 30, 2023, and
rolled forward to the measurement date of June 30, 2024. The VCCS’ proportion of the Net
VSDP OPEB Liability (Asset) was based on the VCCS’ actuarially determined employer
contributions to the VSDP OPEB plan for the year ended June 30, 2024, relative to the total of
63
the actuarially determined employer contributions for all participating employers. At June 30,
2024, the VCCS’ proportion was 6.73% as compared to 6.91% at June 30, 2023.
For the year ended June 30, 2025, the VCCS recognized VSDP OPEB expense of $819,354.
Since there was a change in proportionate share between measurement dates, a portion of the
VSDP OPEB expense was related to deferred amounts from changes in proportion.
At June 30, 2025, the VCCS reported deferred outflows of resources and deferred inflows of
resources related to the VRS OPEB plans from the following sources:
VRS Health Insurance Credit Program Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ - $ 2,795,387
Net difference between projected and actual
earnings on State HIC OPEB program
investments - 119,635
Change in assumptions 569,383 -
Changes in proportionate share and differences
between actual and expected contributions 874,186 3,560,004
Employer contributions subsequent to the
measurement date 5,457,032 -
Total $ 6,900,601 $ 6,475,026
VRS Group Life Insurance Program Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 3,050,529 $ 481,232
Net difference between projected and actual
earnings on GLI OPEB program investments - 1,660,593
Change in assumptions 112,297 976,345
Changes in proportionate share 569,986 1,892,192
Employer contributions subsequent to the
measurement date 2,253,638 -
Total $ 5,986,450 $ 5,010,362
64
VRS Line of Duty Act Program Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 79,167 $ 555,785
Net difference between projected and actual
earnings on LODA OPEB program investments - 7,523
Change in assumptions 419,429 458,257
Changes in proportionate share 820,810 626,834
Employer contributions subsequent to the
measurement date 96,394 -
Total $ 1,415,800 $ 1,648,399
VRS Virginia Sickness and Disability Plan Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 1,064,238 $ 2,618,182
Net difference between projected and actual
earnings on VSDP OPEB program investments - 1,135,007
Change in assumptions 31,239 77,252
Changes in proportionate share 1,669,213 510,549
Employer contributions subsequent to the
measurement date 2,020,582 -
Total $ 4,785,272 $ 4,340,990
$5,457,032 reported as deferred outflows of resources related to the State Employee HIC OPEB
resulting from VCCS’ contributions subsequent to the measurement date will be recognized as a
reduction of the Net State Employee HIC OPEB Liability in the Fiscal Year ending June 30, 2026.
$2,253,638 reported as deferred outflows of resources related to the GLI OPEB resulting from
VCCS’ contributions subsequent to the measurement date will be recognized as a reduction of
the Net GLI OPEB Liability in the Fiscal Year ending June 30, 2026.
$96,394 reported as deferred outflows of resources related to the LODA OPEB resulting from
VCCS’ contributions subsequent to the measurement date will be recognized as a reduction of
the Net LODA OPEB Liability in the Fiscal Year ending June 30, 2026.
65
$2,020,582 reported as deferred outflows of resources related to the VSDP OPEB resulting from
VCCS’ contributions subsequent to the measurement date will be recognized as a reduction of
the Net VSDP OPEB Liability in the Fiscal Year ending June 30, 2026.
Other amounts reported as deferred outflows of resources and deferred inflows of resources to
the VRS administered OPEB programs will be recognized in OPEB expense in future reporting
periods as follows:
Year ended June 30
HIC GLI LODA VSDP
FY 2026 (1,796,329) (1,388,292) (11,875) (1,200,311)
FY 2027 (1,227,170) 3,272 (9,825) (44,869)
FY 2028 (1,113,126) (143,948) (17,299) (221,159)
FY 2029 (679,786) 48,460 (32,773) (132,582)
FY 2030 (215,046) 259,737 (83,331) 91,670
Thereafter - - (173,980) (69,058)
HIC Actuarial Assumptions
The total State Employee HIC OPEB Liability for the VRS State Employee Health Insurance
Credit Program was based on an actuarial valuation as of June 30, 2023, using the Entry Age
Normal actuarial cost method and the following assumptions, applied to all periods included in
the measurement and rolled forward to the measurement date of June 30, 2024.
Inflation 2.50%
Salary increases, including inflation -
General state employees 3.50% – 5.35%
SPORS employees 3.50% – 4.75%
VaLORS employees 3.50% – 4.75%
JRS employees 4.00%
Investment rate of return 6.75% net of plan investment expenses, including
Inflation
Mortality rates – General State Employees
Pre-retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; females set forward 2 years
Post-retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
females
Post-disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females.
Mortality Improvement:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020 rates
66
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – SPORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
67
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Increased rates for ages 55 to 61, 63, and 64 with 26 or
more years of service; changed final retirement age from
65 to 70
Withdrawal Rates Decreased rate for 0 years of service and increased rates
for 1 to 6 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – VaLORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June Update to PUB2010 public sector mortality tables. For
30, 2023, valuation were based on the future mortality improvements, replace load with a
results of an actuarial experience study for modified Mortality Improvement Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at age
62, and changed final retirement age from 65 to 70
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
68
Mortality rates – JRS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post- Review separately from State employees because exhibit
retirement healthy, and disabled) fewer deaths. Update to PUB2010 public sector mortality
tables. For future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Decreased rates for ages 60-66 and 70-72
Withdrawal Rates No change
Disability Rates No change
Salary Scale Reduce increases across all ages by 0.50%
Discount Rate No change
GLI Actuarial Assumptions
The total GLI OPEB Liability was based on an actuarial valuation as of June 30, 2023, using the
Entry Age Normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2024.
Inflation 2.50%
Salary increases, including inflation -
General state employees 3.50% – 5.35%
Teachers 3.50% – 5.95%
SPORS employees 3.50% – 4.75%
VaLORS employees 3.50% – 4.75%
JRS employees 4.00%
Locality – General employees 3.50% – 5.35%
Locality – Hazardous Duty employees 3.50% – 4.75%
Investment rate of return 6.75% net of investment expenses, including
Inflation
69
Mortality rates – General State Employees
Pre-Retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; females set forward 2
years
Post-Retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
females
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
70
Mortality rates – Teachers
Pre-Retirement:
Pub-2010 Amount Weighted Teachers Employee Rates projected generationally; 110% of rates for males
Post-Retirement:
Pub-2010 Amount Weighted Teachers Healthy Retiree Rates projected generationally; males set forward 1
year; 105% of rates for females
Post-Disablement:
Pub-2010 Amount Weighted Teachers Disabled Rates projected generationally; 110% of rates for males
and females
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Teachers Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
Mortality rates – SPORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
71
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the
change in the discount rate, which was based on VRS Board action effective as of July 1, 2021.
Changes to the actuarial assumptions as a result of the experience study and VRS Board action
are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Increased rates for ages 55 to 61, 63, and 64 with 26 or
more years of service; changed final retirement age from
65 to 70
Withdrawal Rates Decreased rate for 0 years of service and increased rates
for 1 to 6 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – VaLORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
72
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at age
62, and changed final retirement age from 65 to 70
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – JRS Employees
Pre-Retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; males set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 95% of rates for
males and females set back 2 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Review separately from State employees because exhibit
healthy, and disabled) fewer deaths. Update to PUB2010 public sector mortality
tables. For future mortality improvements, replace load
with a modified Mortality Improvement Scale MP-2020
Retirement Rates Decreased rates for ages 60-66 and 70-72
Withdrawal Rates No change
Disability Rates No change
Salary Scale Reduce increases across all ages by 0.50%
Discount Rate No change
73
Mortality rates – Largest 10 Locality Employers - General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; males set forward 2 years;
105% of rates for females set forward 3 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 95% of rates for males
set forward 2 years; 95% of rates for females set forward 1 year.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110% of rates for males set
forward 3 years; 110% of rates for females set forward 2 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2022, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020, except the
change in the discount rate, which was based on VRS Board action effective as of July 1, 2021.
Changes to the actuarial assumptions as a result of the experience study and VRS Board action
are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
74
Mortality rates – Non-Largest 10 Locality Employers - General Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; males set forward 2 years;
105% of rates for females set forward 3 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 95% of rates for males
set forward 2 years; 95% of rates for females set forward 1 year.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 110% of rates for males set
forward 3 years; 110% of rates for females set forward 2 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
75
Mortality rates – Largest 10 Locality Employers – Hazardous Duty Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age
and service to rates based on service only to benefit
experience and to be more consistent with Locals Top 10
Ha ardo s D t
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
76
Mortality rates – Non-Largest 10 Locality Employers – Hazardous Duty Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and
service to rates based on service only to better fit
experience and to be more consistent with Locals Top 10
Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
LODA Actuarial Assumptions
The total LODA OPEB liability was based on an actuarial valuation as of June 30, 2023, using
the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2024.
Inflation 2.50%
Salary increases, including Inflation –
General state employees N/A
SPORS employees N/A
VaLORS employees N/A
Locality employees N/A
77
Medical cost trend rates assumption –
Under age 65 7.25% – 4.25%
Ages 65 and older 6.50% – 4.25%
Year of ultimate trend rate
Under age 65 Fiscal year ended 2034
Ages 65 and older Fiscal year ended 2034
Investment rate of return 3.97%, including inflation*
* Since LODA is funded on a current-disbursement basis, the assumed annual rate of
return of 3.97% was used since it approximates the risk-free rate of return.
Mortality rates – General State Employees
Pre-Retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally;females set forward 2
years.
Post-Retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
females.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
78
Mortality rates – SPORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Increased rates for ages 55 to 61, 63, and 64 with 26 or
more years of service and changed final retirement age
from 65 to 70
Withdrawal Rates Decreased rate for 0 years of service and increased
rates for 1 to 6 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
79
Mortality rates – VaLORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at
age 62, and changed final retirement age from 65 to 70
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
80
Mortality rates – Largest 10 Locality Employers With Public Safety Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement age from 65 to 70
Withdrawal Rates Decreased rates
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Mortality rates – Non-Largest 10 Locality Employers With Public Safety Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years.
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years.
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years.
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years.
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates.
81
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study are as follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final
retirement age from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age
and service to rates based on service only to better fit
experience and to be more consistent with Locals Top
10 H d D t
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
VSDP Actuarial Assumptions
The total VSDP OPEB liability was based on an actuarial valuation as of June 30, 2023, using
the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2023.
Inflation 2.50%
Salary increases, including Inflation –
General state employees 3.50% – 5.35%
SPORS employees 3.50% – 4.75%
VaLORS employees 3.50% – 4.75%
Investment rate of return 6.75% net of investment expenses, including
Inflation
Mortality rates – General State Employees
Pre-Retirement:
Pub-2010 Amount Weighted General Employee Rates projected generationally; females set forward 2
years
Post-Retirement:
Pub-2010 Amount Weighted General Healthy Retiree Rates projected generationally; 110% of rates for
females
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; males and females set
forward 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted General Contingent Annuitant Rates projected generationally; 110% of rates
for males and females
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
82
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables. For
healthy, and disabled) future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set
separate rates based on experience for Plan 2/Hybrid;
changed final retirement age from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each year age
and service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – SPORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
83
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Increased rates for ages 55 to 61, 63, and 64 with 26 or
more years of service and changed final retirement age
f 65 t 70
Withdrawal Rates Decreased rate for 0 years of service and increased rates
for 1 to 6 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Mortality rates – VaLORS Employees
Pre-Retirement:
Pub-2010 Amount Weighted Safety Employee Rates projected generationally; 95% of rates for males;
105% of rates for females set forward 2 years
Post-Retirement:
Pub-2010 Amount Weighted Safety Healthy Retiree Rates projected generationally; 110% of rates for
males; 105% of rates for females set forward 3 years
Post-Disablement:
Pub-2010 Amount Weighted General Disabled Rates projected generationally; 95% of rates for males set
back 3 years; 90% of rates for females set back 3 years
Beneficiaries and Survivors:
Pub-2010 Amount Weighted Safety Contingent Annuitant Rates projected generationally; 110% of rates for
males and females set forward 2 years
Mortality Improvement Scale:
Rates projected generationally with Modified MP-2020 Improvement Scale that is 75% of the MP-2020
rates
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an
actuarial experience study for the period from July 1, 2016, through June 30, 2020. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as
follows:
84
Mortality Rates (Pre-retirement, post-retirement Update to PUB2010 public sector mortality tables.
healthy, and disabled) Increased disability life expectancy. For future mortality
improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at age
62, and changed final retirement age from 65 to 70
Withdrawal Rates Adjusted rates to better fit experience at each age and
service decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Net OPEB Liability (Asset)
The net OPEB liability (asset) represents the program’s total OPEB liability determined in
accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the
measurement date of June 30, 2024, Net OPEB liability (asset) amounts for VRS administered
programs are as follows (amounts expressed in thousands):
HIC GLI LODA VSDP
Total OPEB Liability $ 1,094,073 $ 4,196,055 $ 398,395 $ 339,007
Plan Fiduciary Net Position 384,820 3,080,133 4,841 692,870
Net OPEB Liability (Asset) $ 709,253 $ 1,115,922 $ 393,554 $ (353,863)
Plan Fiduciary Net Position as a
Percentage of the Total OPEB Liability 35.17% 73.41% 1.22% 204.38%
The total OPEB liability is calculated by the System’s actuary, and each plan’s fiduciary net
position is reported in the System’s financial statements. The net OPEB liability is disclosed in
accordance with the requirements of GASB Statement No. 74 in the System’s notes to the
financial statements and required supplementary information.
Long-Term Expected Rate of Return for the HIC, GLI, & VSDP OPEB programs
The long-term expected rate of return on the VRS System investments was determined using a
log-normal distribution analysis in which best-estimate ranges of expected future real rates of
return (expected returns, net of VRS System investment expense and inflation) are developed
for each major asset class. These ranges are combined to produce the long-term expected rate
of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target asset allocation and best estimate of
arithmetic real rates of return for each major asset class are summarized in the following table:
85
Arithmetic Weighted Average
Long-Term Long-Term Long-Term
Target Asset Expected Rate Expected Rate of
Asset Class (Strategy) Allocation of Return Return*
Public Equity 32.00% 6.70% 2.14%
Fixed Income 16.00% 5.40% 0.86%
Credit Strategies 16.00% 8.10% 1.30%
Real Assets 15.00% 7.20% 1.08%
Private Equity 15.00% 8.70% 1.31%
PIP - Private Investment 1.00% 8.00% 0.08%
Diversifying Strategies 6.00% 5.80% 0.35%
Cash 2.00% 3.00% 0.06%
Leverage (3.00%) 3.50% (0.11%)
Total 100.00% 7.07%
*Expected arithmetic nominal return 7.07%
* The above allocation provides a one-year return of 7.07%, includes a 2,.50% inflation
assumption). However, one-year returns do not take into account the volatility present in each of
the asset classes. In setting the long-term expected return for the System, stochastic projections
are employed to model future returns under various economic conditions. These results provide a
range of returns over various time periods that ultimately provide a median return of 7.10%,
including expected inflation of 2.50%.
On June 15, 2023, the VRS Board elected a long-term rate of return of 6.75%, which was roughly
at the 45th percentile of expected long-term results of the VRS fund asset allocation at that time,
providing a median return of 7.14%, including expected inflation of 2.50%.
Long-Term Expected Rate of Return for the LODA OPEB Program
The long-term expected rate of return on LODA OPEB Program’s investments was set at 3.97%
for this valuation. Since LODA is funded on a current-disbursement basis, it is not able to use the
VRS Pooled Investments’ 6.75% assumption. Instead, the assumed annual rate of return of
3.97% was used since it approximates the risk-free rate of return. This Single Equivalent Interest
Rate (SEIR) is the applicable municipal bond index rate based on the Fidelity Fixed Income
General Obligation 20-year Municipal Bond Index as of the measurement date of June 30, 2024.
Discount Rate
The discount rate used to measure the total State Employee HIC OPEB was 6.75%. The
projection of cash flows used to determine the discount rate assumed that employer
contributions will be made in accordance with the VRS funding policy at rates equal to the
actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the
fiscal year ending June 30, 2024, the rate contributed by the VCCS for the VRS State Employee
Health Insurance Credit Program will be subject to the portion of the VRS Board-certified rates
that are funded by the Virginia General Assembly which was 108% of the actuarially determined
contribution rate. From July 1, 2024 on, all agencies are assumed to continue to contribute 100%
of the actuarially determined contribution rates. Based on those assumptions, the State
Employee HIC OPEB plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current active and inactive employees. Therefore, the long-
term expected rate of return was applied to all periods of projected benefit payments to
determine the total State Employee HIC OPEB liability.
86
The discount rate used to measure the total GLI OPEB Liability was 6.75%. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made
per the VRS guidance and the employer contributions will be made in accordance with the VRS
funding policy and at rates equal to the actuarially determined contribution rates adopted by the
VRS Board of Trustees. Through the fiscal year ending June 30, 2024, the rate contributed by the
entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are
funded by the Virginia General Assembly which was 113% of the actuarially determined
contribution rate. From July 1, 2024 on, employers are assumed to continue to contribute 100%
of the actuarially determined contribution rates. Based on those assumptions, the GLI OPEB’s
fiduciary net position was projected to be available to make all projected future benefit payments
of eligible employees. Therefore the long-term expected rate of return was applied to all periods
of projected benefit payments to determine the total GLI OPEB Liability.
The discount rate used to measure the total LODA OPEB liability was 3.97%. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made
per the VRS Statutes and that they will be made in accordance with the VRS funding policy and
at rates equal to the actuarially determined contribution rates adopted by the VRS Board of
Trustees. Through the fiscal year ending June 30, 2024, the rate contributed by participating
employers to the LODA OPEB Program will be subject to the portion of the VRS Board-certified
rates that are funded by the Virginia General Assembly.
The discount rate used to measure the total VSDP OPEB liability was 6.75%. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be
made per the VRS Statutes and that they will be made in accordance with the VRS funding
policy and at rates equal to the actuarially determined contribution rates adopted by the VRS
Board of Trustees. Through the fiscal year ending June 30, 2024, the rate contributed by
participating employers to the VSDP OPEB Program will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly which was 109% of the
actuarially determined contribution rate. From July 1, 2024, on, participating employers are
assumed to continue to contribute 100% of the actuarially determined contribution rates. Based
on those assumptions, the VSDP OPEB Program’s fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return was applied to all periods of projected benefit
payments to determine the total VSDP OPEB liability.
Sensitivity of the VCCS’ Proportionate Share of the Net OPEB Liability (Asset) to Changes
in the Discount Rate
The following presents the VCCS’ proportionate share of the VRS State Employee Health
Insurance Credit Program net HIC OPEB liability using the discount rate of 6.75%, as well as
what the VCCS’ proportionate share of the net HIC OPEB liability would be if it were calculated
using a discount rate that is one percentage point lower (5.75%) or one percentage point higher
(7.75%) than the current rate (amounts expressed in thousands):
1.00% Decrease Current Discount 1.00% Increase
(5.75%) Rate (6.75%) (7.75%)
VCCS' proportionate share
of the VRS State
$ 40,517,211 $ 35,345,060 $ 30,905,563
Employee HIC OPEB Plan
Net OPEB Liability
The following presents the VCCS’ proportionate share of the net GLI OPEB liability using the
discount rate of 6.75%, as well as what the VCCS’ proportionate share of the net GLI OPEB
87
Liability would be if it were calculated using a discount rate that is one percentage point lower
(5.75%) or one percentage point higher (7.75%) than the current rate (amounts expressed in
thousands):
1.00% Decrease Current Discount 1.00% Increase
(5.75%) Rate (6.75%) (7.75%)
VCCS' proportionate share
$ 30,637,686 $ 19,701,044 $ 10,865,679
of the Group Life Insurance
Plan Net OPEB Liability
The following presents the VCCS’ proportionate share of the net LODA OPEB liability using the
discount rate of 3.97%, as well as what the VCCS’ proportionate share of the net LODA OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower
2.97% or one percentage point higher 4.97% than the current rate (amounts expressed in
thousands):
1.00% Decrease Current Discount 1.00% Increase
2.97% Rate 3.97% 4.97%
VCCS' proportionate share
of the total LODA Net $ 2,522,346 $ 2,275,297 $ 2,062,865
OPEB Liability
The following presents the VCCS’ proportionate share of the net VSDP OPEB liability (asset)
using the discount rate of 6.75%, as well as what the VCCS’ proportionate share of the net
VSDP OPEB liability (asset) would be if it were calculated using a discount rate that is one
percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate
(amounts expressed in thousands):
1.00% Decrease Current Discount 1.00% Increase
(5.75%) Rate (6.75%) (7.75%)
VCCS' proportionate share
of the VSDP Net OPEB $ (22,166,779) $ (23,801,888) $ (25,249,968)
Liability (Asset)
Sensitivity of Covered Employer’s Proportionate Share of the net LODA OPEB Liability to
Changes in the Health Care Trend Rate
Because the Line of Duty Act Program (LODA) contains provisions for the payment of health
insurance premiums, the liabilities are also impacted by the health care trend rates. The
following presents the VCCS’ proportionate share of the net LODA OPEB liability using health
care trend rate of 7.25% decreasing to 4.25%, as well as what the VCCS’ proportionate share of
the net LODA OPEB liability would be if it were calculated using a health care trend rate that is
one percentage point lower (6.25% decreasing to 3.25%) or one percentage point higher (8.25%
decreasing to 5.25%) than the current rate:
88
1.00% Decrease
(6.25% Current Trend Rate 1.00% Increase
decreasing to (7.25% decreasing to (8.25% decreasing
3.25%) 4.25%) to 5.25%)
VCCS' proportionate share
of the LODA Net OPEB $ 1,938,252 $ 2,275,297 $ 2,688,859
Liability (Asset)
VRS OPEB Programs Fiduciary Net Position
Detailed information about the VRS OPEB Programs Fiduciary Net Position is available in the
separately issued VRS 2024 Annual Report. A copy of the 2024 VRS Annual Comprehensive
Financial Report (Annual Report). A copy of the 2024 VRS Annual Report may be downloaded
from the VRS website at, https://www.varetire.org/pdf/publications/2024-annual-report.pdf or by
writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Payables to the State Employee Health Insurance Credit Program OPEB Plan
The VCCS recognized $65,139,169 as Accrued Payroll Expenses as of June 30, 2025, which
represents hours worked before June 30 but paid after July 1. The portion payable for
contributions to the Health Insurance Credit Program is estimated at $214,394.
Payables to the VRS Group Life Insurance OPEB Plan
The VCCS recognized $65,139,169 as Accrued Payroll Expenses as of June 30, 2025, which
represents hours worked before June 30 but paid after July 1. The portion payable for
contributions to the Group Life Insurance Plan is estimated at $226,834.
Payables to the Disability Insurance Program (VSDP) OPEB Plan
The VCCS recognized $65,139,169 as Accrued Payroll Expenses as of June 30, 2025, which
represents hours worked before June 30 but paid after July 1. The portion payable for
contributions to the Disability Insurance Plan is estimated at $86,951.
Plans administered by the DHRM
Pre-Medicare Retiree Healthcare
The Commonwealth provides a healthcare plan established by Title 2.2, Chapter 28 of the Code
of Virginia for retirees who are not yet eligible to participate in Medicare.
Following are eligibility requirements for Virginia Retirement System retirees:
• You are a retiring state employee who is eligible for a monthly retirement benefit from
the Virginia Retirement System (VRS), and
• You start receiving (do not defer) your retirement benefit immediately upon retirement*,
and
• Your last employer before retirement was the Commonwealth of Virginia, and
• You were eligible for (even if you were not enrolled in) coverage as an active employee
in the State Health Benefits Program until your retirement date (not including Extended
Coverage/COBRA), and
• You enroll no later than 31 days from your retirement date.
*For VRS retirees, this means that your employing agency reported a retirement contribution or
leave without pay status for retirement in the month immediately prior to your retirement date.
Some faculty members may also be eligible if they are paid on an alternate pay cycle but
maintain eligibility for active coverage until their retirement date.
89
Effective January 1, 2017**, following are eligibility requirements for Optional Retirement Plan
retirees:
• You are a terminating state employee who participates in one of the qualified Optional
Retirement Plans, and
• Your last employer before termination was the Commonwealth of Virginia, and
• You were eligible for (even if you were not enrolled in) coverage in the State Employee
Health Benefits Program for active employees at the time of your termination, and
• You meet the age and service requirements for an immediate retirement benefit under
the non-ORP Virginia Retirement System plan that you would have been eligible for on
your date of hire had you not elected the ORP, and
• You enroll in the State Retiree Health Benefits Program no later than 31 days from the
date you lose coverage (or lose eligibility for coverage) in the State Health Benefits
Program for active employees due to your termination of employment.
**This change applies to ORP terminations effective January 1, 2017, or later. Eligibility for those
who terminated employment prior to January 1 should be determined based on the policy in
place at the time of their termination.
The employer does not pay a portion of the retirees’ healthcare premium; however, since
both active employees and retirees are included in the same pool for purposes of determining
health insurance rates, this generally results in a higher rate for active employees. Therefore, the
employer effectively subsidizes the costs of the participating retirees’ healthcare through
payment of the employer’s portion of the premiums for active employees.
This fund is reported as part of the Commonwealth’s Healthcare Internal Service Fund. Benefit
payments are recognized when due and payable in accordance with the benefit terms. Pre-
Medicare Retiree Healthcare is a single-employer defined benefit OPEB plan that is treated
like a cost-sharing plan for financial reporting purposes, and is administered by the
Department of Human Resource Management. There were approximately 3,235 retirees and
96,895 active employees in the program as of June 30, 2024. There are no inactive employees
entitled to future benefits who are not currently receiving benefits. There are no assets
accumulated in a trust to pay benefits.
Pre-Medicare Retiree Healthcare OPEB Liabilities, OPEB Expense, and Deferred Outflow of
Resources and Deferred Inflows of Resources
At June 30, 2025, the VCCS reported a liability of $23,206,225 for its proportionate share of the
collective total Pre-Medicare Retiree Healthcare OPEB liability of $356.5 million. The Pre-
Medicare Retiree Healthcare OPEB liability was measured as of June 30, 2024 and was
determined by an actuarial valuation as of June 30, 2024. The VCCS’ proportion of the Pre-
Medicare Retiree Healthcare OPEB liability was based on each employer’s c a l c u l a t e d
healthcare premium contributions as a percentage of the total employer’s calculated healthcare
premium contributions for all participating employers. On June 30, 2024, the VCCS’ proportion
was 6.51% as compared to 6.55% at June 30, 2023. For the year ended June 30, 2025, the
VCCS recognized Pre-Medicare Retiree Healthcare OPEB expense of $(7,793,123).
At June 30, 2025, the VCCS reported deferred outflows or resources and deferred inflows of
resources related to Pre-Medicare Retiree Healthcare from the following sources:
90
Pre-Medicare Retiree Healthcare Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between actual and expected
experience $ 465,203 $ 2,793,758
Change in assumptions 455,034 8,166,299
Changes in proportionate share 1,944,715 3,150,107
Sub Total 2,864,952 14,110,164
Amounts associated with transactions
subsequent to the measurement date - -
Total $ 2,864,952 $ 14,110,164
Deferred outflows of resources related to the Pre-Medicare Retiree Healthcare OPEB
resulting from amounts associated with transactions subsequent to the measurement date were
$0. These amounts will be recognized as a reduction of the total OPEB Liability in the fiscal
year ending June 30, 2026. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to the Pre-Medicare Retiree Healthcare OPEB will be
recognized in the Pre-Medicare Retiree Healthcare OPEB expense as follows:
Year ended June 30
FY 2026 $ 5,818,107
FY 2027 $ (3,452,153)
FY 2028 $ (1,665,341)
FY 2029 $ (233,636)
FY 2030 $ (65,840)
Thereafter -
Actuarial Assumptions and Methods
The total Pre-Medicare Retiree Healthcare OPEB liability was based on an actuarial valuation with
a valuation date of June 30, 2024 (one year prior to the end of the fiscal year). The
Department of Human Resource Management selected the economic, demographic and
healthcare claim cost assumptions. The actuary provided guidance with respect to these
assumptions. Initial healthcare costs trend rates used were 7.50 percent for medical and
pharmacy and 4.00 percent for dental. The ultimate trend rates used were 4.50 percent for
medical and pharmacy and 4.00 percent for dental.
Valuation Date Actuarially determined contribution rates are calculated as
of June 30, one year prior to the end of the fiscal year in
which contributions are reported.
Measurement Date June 30, 2024 (one year prior to the end of the fiscal year)
Actuarial Cost Method Entry Age Normal
Amortization Method Level dollar, Closed
Effective Amortization Period 5.80 years
Discount Rate 3.93%
91
Projected Salary Increases 5.35% to 3.50% based on years of service from 1 year to 20
years or more
Medical Trend Under 65 Medical & Rx: 7.50% to 4.50% Dental: 4.00%
Year of Ultimate Trend 2034
Mortality Mortality rates vary by participant status and gender
Pre-Retirement: Pub-2010 Benefits Weighted General Employee Rates
projected generationally with a Modified MP-2021
Improvement Scale; females set forward 2 years
Post-Retirement Pub-2010 Benefits Weighted General Healthy Retiree Rates
projected generationally with a modified MP-2021
Improvement Scale; 110% of rates for females
Post-Disablement: Pub-2010 Benefits Weighted General Disabled Rates
projected generationally with a Modified MP-2021
Improvement Scale; males and females set forward 3 years
Beneficiaries and Survivors: Pub-2010 Benefits Weighted General Contingent Annuitant
Rates projected generationally with a Modified MP-2021
Improvement Scale; 110% of rates for males and females
The discount rate was based on the Bond Buyers GO 20 Municipal Bond Index as of the
measurement date which is June 30, 2024.
Changes of Assumptions:
There were not any changes in assumptions since June 30, 2022, measurement date. The
following remained constant since the prior measurement date:
• Spousal Coverage – rate remained at 20 percent
• Retiree participation – rate remained at 35 percent
Retiree participation was based on a blend of recent experience and the prior year assumptions.
The trend rates were updated based on economic conditions as of June 30, 2024. Additionally,
the discount rate was increased from 3.65 percent to 3.93 percent based on the Bond Buyers
GO 20 Municipal Bond Index as of June 30, 2024.
There was no plan changes in the valuation since the prior year.
Sensitivity of the VCCS’ Proportionate Share of the OPEB Liability to Changes in the
Discount Rate
The following presents the VCCS’ proportionate share of the Pre-Medicare Retiree Healthcare
OPEB liability using the discount rate of 3.93 percent, as well as what the VCCS’
proportionate share of the Pre-Medicare Retiree Healthcare OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower (2.93 percent) or one
percentage point higher (4.93 percent) than the current rate:
92
1% Decrease 1% Increase
(2.93%) Current Rate (3.93%) (4.93%)
OPEB Liability $ 24,618,617 $ 23,206,225 $ 21,867,347
Sensitivity of the VCCS’ Proportionate Share of the OPEB Liability to Changes in the
Healthcare Cost Trend Rates
The following presents the VCCS’ proportionate share of the Pre-Medicare Retiree Healthcare
OPEB liability using healthcare cost trend rate of 7.50 percent decreasing to 4.50 percent,
as well as what the VCCS’ proportionate share of the Pre-Medicare Retiree Healthcare OPEB
liability would be if it were calculated using a healthcare cost trend rate that is one percentage
point lower (6.50 percent decreasing to 3.50 percent) or one percentage point higher (8.50
percent decreasing to 5.50 percent) than the current rate:
1% Decrease
(6.50% Trend Rate 1% Increase
decreasing to (7.50% decreasing to (8.50% decreasing
3.50%) 4.50%) to 5.50%)
OPEB Liability $ 21,091,110 $ 23,206,225 $ 25,659,737
19. RISK MANAGEMENT
The System is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; non-performance of duty; injuries to employees; and
natural disasters. The System participates in insurance plans maintained by the Commonwealth
of Virginia. The state employee health care and worker’s compensation plan are administered by
the Department of Human Resource Management, and the risk management insurance plans are
administered by the Department of Treasury, Division of Risk Management. Risk management
insurance includes property, general liability, medical malpractice, faithful performance of duty
bonds, automobile, and air and watercraft plans. The System pays premiums to each of these
Departments for its insurance coverage. Information relating to the Commonwealth’s insurance
plans is available at the statewide level in the Commonwealth of Virginia’s Comprehensive
Annual Financial Report.
A Faithful Performance Duty Bond administered by the Commonwealth of Virginia’s Department
of Treasury, Division of Risk Management, covers the employees of the VCCS. The Faithful
Performance Duty Bond provides coverage with liability limits of $500,000 for each occurrence.
20. CAPITAL APPROPRIATIONS-STATE
Capital appropriations-state is comprised of the following:
Virginia College Building Authority appropriation revenue $23,884,480
General Fund appropriation revenue 44,010,665
Capital contributions from Treasury 11,947
Total $67,907,092
93
21. COMPONENT UNIT FINANCIAL INFORMATION
Below is a summary of the foundations.
VCCS has five major component units—Virginia Western Community College Educational
Foundation, Southwest Virginia Community College Educational Foundation, Mountain Empire
Community College Educational Foundation, Northern Virginia Community College Educational
Foundation and New River Community College Educational Foundation. Additionally, the System
has twenty-five non-major component units—Blue Ridge Community College Educational
Foundation, Central Virginia Community College Educational Foundation, Dabney S. Lancaster
Community College Educational Foundation, Dabney S. Lancaster Community College Real
Estate Foundation, Danville Community College Educational Foundation, Eastern Shore
Community College Foundation, Germanna Community College Educational Foundation, J.
Sargeant Reynolds Community College Educational and Real Estate Foundation, John Tyler
Community College Foundation, John Tyler Community College Real Estate Foundation, Laurel
Ridge Community College Educational Foundation, New River Community College Educational
Foundation, Patrick Henry Community College Real Estate Foundation, Paul D. Camp
Community College Foundation, Paul D. Camp Community College Real Estate Foundation,
Rappahannock Community College Educational Foundation, Southside Virginia Community
College Foundation, Thomas Nelson Community College Educational Foundation, Tidewater
Community College Educational Foundation, Tidewater Community College Real Estate
Foundation, Virginia Highlands Community College Educational Foundation, Wytheville
Community College Educational Foundation, Wytheville Community College Scholarship
Foundation, Wytheville Community College Real Estate Foundation and the Virginia Foundation
for Community College Education. These organizations are separately incorporated entities and
other auditors examine the related financial statements.
For fiscal year 2025, Virginia Western Community College Educational Foundation, Southwest
Virginia Community College Educational Foundation, Mountain Empire Community College
Educational Foundation, Northern Virginia Community College Educational Foundation and New
River Community College Educational Foundation were considered major component units as a
result of their ending net position.
94
Virginia Community College System Foundations
Statement of Net Position
As of June 30, 2025*
Southwest
Virginia Western Virginia Mountain Empire Northern Virginia New River
Community Community Community Community Community
College College College College College Combined Non-
Educational Educational Educational Educational Educational Major Component Total Component
Foundation Foundation Foundation Foundation Foundation Units Units
ASSETS
Cash and cash equivalents $ 31,325 $ 169,053 $ 311,311 $ 862,975 $ 364,557 $ 36,241,588 $ 37,980,809
Short term investments - 18,383,963 - 2,661,526 - 10,774,571 31,820,060
Accounts receivable, net - 406 8,279 - - 3,520,269 3,528,954
Pledges receivable 663,595 69,846 - 140,000 - 4,149,854 5,023,295
Interest receivable 30,149 - - - - 88,871 119,020
Prepaid expenses 45,948 28,913 15,399 - - 684,559 774,819
Notes receivable, net - - - - 50,694 215,000 265,694
Total current assets 771,017 18,652,181 334,989 3,664,501 415,251 55,674,712 79,512,651
Noncurrent assets:
Endowment cash and cash equivalen 953,989 33,600 87,093 - 2,139,045 5,102,577 8,316,304
Endowment investments 31,197,348 4,899,789 36,382,250 15,082,867 25,708,609 167,752,117 281,022,980
Other long-term investments 6,811,889 11,042,549 2,939,845 18,873,164 4,918,581 79,399,312 123,985,340
Accounts receivable, net - - 600,145 - - 38,263 638,408
Investments in real estate - - - - - 1,051,105 1,051,105
Pledges receivable 1,020,887 101,225 - 397,362 - 2,551,968 4,071,442
Non-depreciable capital assets, net - 366,160 35,500 - - 29,417,490 29,819,150
Depreciable capital assets, net - 7,752,795 - - 48,657 59,130,530 66,931,982
Total noncurrent assets 39,984,113 24,196,118 40,044,833 34,353,393 32,814,892 344,443,362 515,836,711
Total assets 40,755,130 42,848,299 40,379,822 38,017,894 33,230,143 400,118,074 595,349,362
LIABILITIES
Accounts and retainage payable 183,086 35,510 381,887 240,919 1,256 4,773,732 5,616,390
Accrued payroll expense - - - 15,274 - 138,249 153,523
Unearned revenue - - - - - 614,554 614,554
Long-term liabilities-current portion - 95,480 - - - 1,352,706 1,448,186
Deposits - 26,137 - - - 185,601 211,738
Total current liabilities 183,086 157,127 381,887 256,193 1,256 7,064,842 8,044,391
Noncurrent liabilities:
95
Southwest
Virginia Western Virginia Mountain Empire Northern Virginia New River
Community Community Community Community Community
College College College College College Combined Non-
Educational Educational Educational Educational Educational Major Component Total Component
Foundation Foundation Foundation Foundation Foundation Units Units
Unearned revenue - - - - - 217,500 217,500
Long-term liabilities - 3,248,647 599,381 - - 40,092,369 43,940,397
Total noncurrent liabilities - 3,248,647 599,381 - - 40,309,869 44,157,897
Total liabilities 183,086 3,405,774 981,268 256,193 1,256 47,374,711 52,202,288
NET POSITION
Net investment in capital
assets - 4,790,126 - - 48,657 38,694,113 43,532,896
Restricted for:
Nonexpendable 14,442,580 3,174,573 13,088,106 9,620,023 15,389,434 123,947,585 179,662,301
Expendable 21,218,752 10,901,464 17,936,603 11,083,055 3,630,963 115,027,444 179,798,281
Unrestricted 4,910,712 20,576,362 8,373,845 17,058,623 14,159,833 75,074,221 140,153,596
Total Net Position $ 40,572,044 $ 39,442,525 $ 39,398,554 $ 37,761,701 $ 33,228,887 $ 352,743,363 $ 543,147,074
* Refer to Footnote 1D
96
Virginia Community College System Foundations
Statement of Revenues, Expenses, and Changes in Net Position
As of June 30, 2025*
Southwest
Virginia Western Virginia Mountain Empire Northern Virginia
Community Community Community Community New River Combined Non-
College College College College Community College Major Total
Educational Educational Educational Educational Educational Component Component
Foundation Foundation Foundation Foundation Foundation Units Units
REVENUES
Grants $ - $ 85,185 $ 719,922 $ - $ - $ 12,019,357 $ 12,824,464
Gifts and contributions 1,365,245 577,700 95,160 2,249,899 1,114,911 19,785,493 25,188,408
Other operating revenues 3,831,962 531,065 194,171 998,384 264,070 16,282,226 22,101,878
Total operating revenues 5,197,207 1,193,950 1,009,253 3,248,283 1,378,981 48,087,076 60,114,750
EXPENSES
Instruction - - - - - 1,410,465 1,410,465
Public service - - - - - 1,624,184 1,624,184
Academic support - - 1,241,721 6,796,632 - 14,255,931 22,294,284
Student services - - - - - 297,401 297,401
Institutional support 896,095 2,443,440 396,632 223,925 113,642 16,840,438 20,914,172
Operation and maintenance - 724,678 - - - 870,045 1,594,723
Scholarships and fellowships 1,610,357 370,969 101,103 505,750 1,770,989 9,448,650 13,807,818
Auxiliary enterprises - - - - - 495,501 495,501
Fundraising 183,060 21,473 94,415 100,144 66,300 2,570,597 3,035,989
Other expenses - 137,438 - - - 1,759,661 1,897,099
Total operating expenses 2,689,512 3,697,998 1,833,871 7,626,451 1,950,931 49,572,873 67,371,636
Operating income (loss) 2,507,695 (2,504,048) (824,618) (4,378,168) (571,950) (1,485,796) (7,256,885)
Nonoperating revenues (expenses):
Investment Income (loss) 4,505,696 3,620,129 4,401,143 3,408,993 3,214,133 26,242,263 45,392,357
Other nonoperating revenues
(expenses) - - - - - - -
Net nonoperating revenue 4,505,696 3,620,129 4,401,143 3,408,993 3,214,133 26,242,263 45,392,357
Income before other revenues,
expenses gains and losses 7,013,391 1,116,081 3,576,525 (969,175) 2,642,183 24,756,466 38,135,471
97
Southwest
Virginia Western Virginia Mountain Empire Northern Virginia
Community Community Community Community New River Combined Non-
College College College College Community College Major Total
Educational Educational Educational Educational Educational Component Component
Foundation Foundation Foundation Foundation Foundation Units Units
Capital gifts, grants and contracts - - - - - 1,067 1,067
Additions to permanent and term
endowments 2,320,760 60,782 379,346 279,789 1,834,312 8,237,094 13,112,083
Increase (decrease) in net position 9,334,151 1,176,863 3,955,871 (689,386) 4,476,495 32,994,627 51,248,621
Net Position - beginning of year 31,237,893 38,265,662 35,442,683 38,451,087 28,752,392 319,748,735 491,898,452
Net Position - end of year $ 40,572,044 $ 39,442,525 $ 39,398,554 $ 37,761,701 $ 33,228,887 $ 352,743,363 $ 543,147,074
*Refer to Footnote 1D
98
22. LITIGATION
A few community colleges have been named as defendants in lawsuits. The outcome of
these lawsuits cannot be determined at this time. However, management is of the opinion
that any ultimate liability to which the colleges may be exposed will not have a material
effect upon the Virginia Community College System’s financial position.
23. AMERICAN RESCUE PLAN ACT OF 2021 (ARPA) CORONAVIRUS RELIEF AND
RESPONSE SUPPLEMENTAL ACT (CRRSAA) OF 2020, and CORONAVIRUS AID,
RELIEF, AND ECONOMIC SECURITY ACT OF 2020
During the fiscal year, eleven community colleges were awarded American Rescue Plan
Act of 2021 (ARPA) reimbursement grants from the Virginia Department of Criminal
Justice Services totaling $306,010. Germanna Community College received a separate
ARPA reimbursement grant of $100,000 from the Virginia Department of Education. The
total amount of these sub-recipient awards was $406,010, which is not considered
significant to the overall financial position.
In the previous fiscal year, , Chapter 1, 2023 Acts of Assembly, Special Session I
designated funding to the VCCS from the American Rescue Plan Act of 2021 (ARPA),
State and Local Recovery Fund (SLRF) in the amount of $2.8 million for the development
of a Commercial Driver's License (CDL) Training Program and Driving Range at Blue
Ridge Community College to support workforce education and training for Virginia
citizens.
In prior years, Chapter 1, 2021 Acts of Assembly, Special Session II designated funding
to the VCCS from the American Rescue Plan Act of 2021 (ARPA), State and Local
Recovery Fund (SLRF) in the amount of $40.0 million for two capital projects at Northern
Virginia Community College (NVCC) including $15.0 million designated for construction
of a new building that would allow NVCC to expand its trades programs in carpentry,
electrical, computer integration in trades, advanced automotive, and backup power
systems and $25.0 million designated for construction of a building that would allow
NVCC to expand its nursing, phlebotomy, occupational therapy assistant, and physical
therapist assistant programs. In addition, the budget allotted to the VCCS sub-award of
$20.0 million from funding awarded to the State Council of Higher Education for Virginia.
ARPA funded capital project and financial aid spending commenced in FY2023 with a
December 30,2023 spend deadline.
In prior years, the Virginia Department of Education (VDOE) awarded an additional $6.7
million in Governor’s Education Emergency Relief (GEER) financial-aid funding, referred
to as GEERII, from the Coronavirus Relief and Response Supplemental Act (CRRSAA)
of 2020. Financial-aid disbursements from GEERII funding commenced in fiscal year
2023 and l concluded in FY2024.
In prior years, the U.S. Department of Education awarded $164.1 million to Virginia’s
community colleges from the Coronavirus Relief and Response Supplemental Act
(CRRSAA) of 2020 as supplemental Higher Education Emergency Relief Funds
(HEERFII). Community colleges also received $293.1million in additional Higher
Education Emergency Relief Funds (HEERFIII) from the 2021 American Rescue Plan Act
(ARPA). The authorized uses for both CRRSAA and ARPA funds included direct
emergency grants to students for pandemic related cost impacts, and institutional costs
associated with responding to the pandemic, including revenue loss.
In prior years, VCCS colleges also received $38.1 million Coronavirus Aid, Relief, and
Economic Security Act (CARES) Coronavirus Relief Funds (CRF) from state CARES Act
allocations from the Governor for targeted pandemic related spending this fiscal year. In
99
FY2022 the VCCS reverted $19.7 million in CRF not spent by the December 31, 2021,
deadline.
100
REQUIRED
SUPPLEMENTARY
INFORMATION
101
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer's Share of Net Pension Liability
VRS State Employee Retirement Plan
*For the Years Ended June 30
VCCS' VCCS's VCCS' Proportionate Share of Plan Fiduciary Net
Proportion of the Proportionate Share the Net Pension Liability Position as a
Net Pension of the Net Pension VCCS' Covered (Asset) as a Percentage of its Percentage of the
Liability (Asset) Liability (Asset) Payroll Covered Payroll Total Pension Liability
2025 6.95% $ 342,633,749 $ 386,080,368 88.75% 83.45%
2024 7.14% $ 361,249,494 $ 335,014,793 107.83% 82.19%
2023 7.33% $ 332,510,974 $ 337,638,468 98.48% 83.26%
2022 7.35% $ 266,500,181 $ 319,448,276 83.43% 86.44%
2021 7.43% $ 537,958,214 $ 326,302,811 164.86% 72.15%
2020 7.66% $ 484,192,628 $ 318,144,635 152.19% 75.13%
2019 7.84% $ 424,652,000 $ 322,386,829 131.72% 77.39%
2018 8.19% $ 477,103,000 $ 326,278,349 146.23% 75.33%
2017 8.48% $ 559,144,000 $ 328,281,989 170.32% 71.29%
2016 8.48% $ 518,887,000 $ 326,582,151 158.88% 72.81%
*The amounts presented have a measurement date of the previous fiscal year-end.
Schedule of Employer's Share of Net Pension Liability
VaLORS Retirement Plan
*For the Years Ended June 30
VCCS' VCCS's VCCS' Proportionate Share of Plan Fiduciary Net
Proportion of the Proportionate Share the Net Pension Liability Position as a
Net Pension of the Net Pension VCCS' Covered (Asset) as a Percentage of its Percentage of the
Liability (Asset) Liability (Asset) Payroll Covered Payroll Total Pension Liability
2025 1.52% $ 10,143,235 $ 6,054,658 167.53% 75.70%
2024 1.66% $ 9,849,421 $ 5,620,186 175.25% 74.91%
2023 1.52% $ 10,514,520 $ 5,626,938 186.86% 74.41%
2022 1.45% $ 7,587,693 $ 5,070,967 149.63% 78.18%
2021 1.49% $ 11,661,463 $ 5,518,364 211.32% 65.74%
2020 1.52% $ 10,574,723 $ 5,332,773 198.30% 68.31%
2019 1.55% $ 9,642,000 $ 5,346,521 180.34% 69.56%
2018 1.55% $ 10,192,000 $ 5,349,651 190.52% 67.22%
2017 1.50% $ 11,618,000 $ 5,187,256 223.97% 61.01%
2016 1.38% $ 9,786,000 $ 4,662,097 209.91% 62.64%
*The amounts presented have a measurement date of the previous fiscal year-end.
102
Schedule of Employer Contributions
VRS State Employee Retirement Plan
For the Years Ended June 30, 2016 through 2025
Contributions
in Relation to
Contractually Contractually Contribution
Required Required Deficiency Employer's Contributions as a % of
Date Contribution Contribution (Excess) Covered Payroll Covered Payroll
2025 $ 51,235,084 $ 51,235,084 - $ 409,225,909 12.52%
2024 $ 55,827,221 $ 55,827,221 - $ 386,080,368 14.46%
2023 $ 51,696,777 $ 51,696,777 - $ 357,515,749 14.46%
2022 $ 48,822,522 $ 48,822,522 - $ 337,638,468 14.46%
2021 $ 46,192,220 $ 46,192,220 - $ 319,448,276 14.46%
2020 $ 44,116,141 $ 44,116,141 - $ 326,302,811 13.52%
2019 $ 41,787,000 $ 41,787,000 - $ 318,144,635 13.13%
2018 $ 43,489,983 $ 43,489,983 - $ 322,386,829 13.49%
2017 $ 44,014,949 $ 44,014,949 - $ 326,278,349 13.49%
2016 $ 46,152,519 $ 46,152,519 - $ 328,281,989 14.06%
Schedule of Employer Contributions
VaLORS Employee Retirement Plan
For the Years Ended June 30, 2016 through 2025
Contributions
in Relation to
Contractually Contractually Contribution
Required Required Deficiency Employer's Contributions as a % of
Date Contribution Contribution (Excess) Covered Payroll Covered Payroll
2025 $ 1,521,443 $ 1,521,443 - $ 6,184,727 24.60%
2024 $ 1,489,447 $ 1,489,447 - $ 6,054,658 24.60%
2023 $ 1,382,565 $ 1,382,565 - $ 5,620,186 24.60%
2022 $ 1,232,299 $ 1,232,299 - $ 5,626,938 21.90%
2021 $ 1,110,540 $ 1,110,540 - $ 5,070,967 21.90%
2020 $ 1,192,521 $ 1,192,521 - $ 5,518,364 21.61%
2019 $ 1,145,000 $ 1,145,000 - $ 5,332,773 21.47%
2018 $ 1,125,443 $ 1,125,443 - $ 5,346,521 21.05%
2017 $ 1,126,102 $ 1,126,102 - $ 5,349,651 21.05%
2016 $ 977,198 $ 977,198 - $ 5,187,256 18.84%
103
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since the
prior actuarial valuation.
Changes of assumptions – The actuarial assumptions used in the June 30, 2023 valuation were based on the results of
an actuarial experience study for the period from July 1, 2016 through June 30, 2020, Changes to the actuarial
assumptions are as follows:
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. For future
retirement healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Adjusted rates to better fit experience for Plan 1; set separate
Retirement Rates rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Adjusted rates to better fit experience at each year age and
Withdrawal Rates
service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
The actuarial assumptions used in the June 30, 2023, valuation were based on the results of an actuarial experience
study for the period from July 1, 2016, through June 30, 2020. Changes to the actuarial assumptions as a result of the
experience study and the VRS Board action are as follows:
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. For future
retirement healthy, and disabled) mortality improvements, replace load with a modified Mortality
Improvement Scale MP-2020
Increased rates at some younger ages, decreased at age 62,
Retirement Rates
and changed final retirement age from 65 to 70
Adjusted rates to better fit experience at each year age and
Withdrawal Rates
service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
104
Schedule of Employer's Share of Net OPEB Liability
Health Insurance Credit Program (HIC)
*For the Years Ended June 30
Plan Fiduciary Net
VCCS' VCCS's VCCS' Proportionate Share of Position as a
Proportion of the Proportionate Share the Net HIC OPEB Liability Percentage of the
Net HIC OPEB of the Net HIC VCCS' Covered (Asset) as a Percentage of its Total HIC OPEB
Liability (Asset) OPEB Liability Payroll Covered Payroll Liability
2025 4.98% $ 35,345,060 $ 452,156,115 7.82% 35.17%
2024 5.14% $ 42,196,417 $ 421,321,102 10.02% 25.46%
2023 5.30% $ 43,403,952 $ 401,475,699 10.81% 21.52%
2022 5.30% $ 44,762,175 $ 381,943,222 11.72% 19.75%
2021 5.44% $ 49,901,710 $ 391,633,015 12.74% 12.02%
2020 5.60% $ 51,728,631 $ 381,875,067 13.55% 10.56%
2019 5.78% $ 52,749,000 $ 389,321,850 13.55% 9.51%
2018 6.10% $ 55,585,000 $ 394,447,967 14.09% 8.03%
*The amounts presented have a measurement date of the previous fiscal year-end.
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
Schedule of Employer Contributions
Health Insurance Credit Program
For the Years Ended June 30, 2018 through 2025
Contributions
For the in Relation to
Year Contractually Contractually Contribution
Ended Required Required Deficiency Employer's Contributions as a % of
June 30 Contribution Contribution (Excess) Covered Payroll Covered Payroll
2025 $ 5,344,150 $ 5,344,150 $ 477,156,319 1.12%
2024 $ 5,064,147 $ 5,064,147 - $ 452,156,115 1.12%
2023 $ 4,718,794 $ 4,718,794 - $ 421,321,102 1.12%
2022 $ 4,496,529 $ 4,496,529 - $ 401,475,699 1.12%
2021 $ 4,277,766 $ 4,277,766 - $ 381,943,222 1.12%
2020 $ 4,582,106 $ 4,582,106 - $ 391,633,015 1.17%
2019 $ 4,468,478 $ 4,468,478 - $ 381,875,067 1.17%
2018 $ 4,593,998 $ 4,593,998 - $ 389,321,850 1.18%
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
105
Schedule of Employer's Share of Net OPEB Liability
Group Life Insurance OPEB Plan (GLI)
*For the Years Ended June 30
Plan Fiduciary Net
VCCS' VCCS's VCCS' Proportionate Share of Position as a
Proportion of the Proportionate Share the Net GLI OPEB Liability Percentage of the
Net GLI OPEB of the Net GLI VCCS' Covered (Asset) as a Percentage of its Total GLI OPEB
Liability (Asset) Liability (Asset) Payroll Covered Payroll Liability
2025 1.77% $ 19,701,044 $ 453,308,148 4.35% 73.41%
2024 1.85% $ 21,479,943 $ 419,770,154 5.12% 69.30%
2023 1.79% $ 22,239,660 $ 401,769,550 5.54% 67.21%
2022 1.86% $ 21,614,468 $ 383,290,595 5.64% 67.45%
2021 1.91% $ 31,946,869 $ 393,971,211 8.11% 52.64%
2020 1.96% $ 31,846,900 $ 383,653,769 8.30% 52.00%
2019 2.06% $ 31,274,000 $ 391,539,930 7.99% 51.22%
2018 2.14% $ 32,268,000 $ 395,579,732 8.16% 48.86%
*The amounts presented have a measurement date of the previous fiscal year-end.
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
Schedule of Employer Contributions
Group Life Insurance OPEB Plan
For the Years Ended June 30, 2018 through 2025
Contributions
For the in Relation to
Year Contractually Contractually Contribution
Ended Required Required Deficiency Employer's Contributions as a % of
June 30 Contribution Contribution (Excess) Covered Payroll Covered Payroll
2025 $ 2,245,371 $ 2,245,371 - $ 477,738,769 0.47%
2024 $ 2,447,867 $ 2,447,867 - $ 453,308,148 0.54%
2023 $ 2,278,187 $ 2,278,187 - $ 419,770,154 0.54%
2022 $ 2,169,557 $ 2,169,557 - $ 401,769,550 0.54%
2021 $ 2,069,768 $ 2,069,768 - $ 383,290,595 0.54%
2020 $ 2,048,652 $ 2,048,652 - $ 393,971,211 0.52%
2019 $ 1,995,018 $ 1,995,018 - $ 383,653,769 0.52%
2018 $ 2,036,008 $ 2,036,008 - $ 391,539,930 0.52%
106
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
Schedule of Employer's Share of Net OPEB Liability
Line of Duty Act Program (LODA)
*For the Measurement Dates of June 30, 2018 through 2025
VCCS' Proportion VCCS' Proportionate Share of Plan Fiduciary Net
of the Net LODA VCCS's Proportionate the Net LODA OPEB Liability Position as a
OPEB Liability Share of the Net VCCS' Covered (Asset) as a Percentage of its Percentage of the Total
(Asset) LODA Liability (Asset) Payroll Covered Payroll LODA OPEB Liability
2025 0.58% $ 2,275,297 $ 6,430,371 35.38% 1.22%
2024 0.50% $ 2,018,526 $ 6,189,737 32.61% 1.31%
2023 0.50% $ 1,906,055 $ 6,348,538 30.02% 1.87%
2022 0.50% $ 2,228,641 $ 5,906,588 37.73% 1.68%
2021 0.60% $ 2,523,073 $ 6,171,841 40.88% 1.02%
2020 0.52% $ 1,849,043 $ 5,697,818 32.45% 0.79%
2019 0.53% $ 1,670,000 $ 5,346,521 31.24% 0.60%
2018 0.55% $ 1,449,000 $ 5,349,651 27.09% 1.30%
*The amounts presented have a measurement date of the previous fiscal year-end.
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
The contributions for the Line of Duty Act Program are based on the number of the participants in the program using a per
capita-based contribution versus a payroll-based contribution. Therefore, covered-employee payroll is the relevant
measurement, which is the total of the employees in the OBEP plan.
107
Schedule of Employer Contributions
Line of Duty Act Program (LODA)
For the Years Ended June 30, 2018 through 2025
Contributions
For the in Relation to
Year Contractually Contractually Contribution Contributions as a % of
Ended Required Required Deficiency Covered- Covered-Employee
June 30 Contribution Contribution (Excess) Employee Payroll Payroll*
2025 $ 96,394 $ 96,394 - $ 7,078,420 1.36%
2024 $ 87,238 $ 87,238 - $ 6,430,371 1.36%
2023 $ 64,093 $ 64,093 - $ 5,620,186 1.14%
2022 $ 69,365 $ 69,365 - $ 6,348,538 1.09%
2021 $ 69,579 $ 69,579 - $ 5,906,588 1.18%
2020 $ 81,869 $ 81,869 - $ 6,171,841 1.33%
2019 $ 69,165 $ 69,165 - $ 5,697,818 1.21%
2018 $ 68,000 $ 68,000 - $ 5,346,521 1.27%
*The contributions for the Line of Duty Act Program are based on the number of participants in the program using a per
capita-based contribution versus a payroll-based contribution. Therefore, covered-employee payroll is the relevant
measurement, which is the total payroll of the employees in the OPEB plan.
Schedule of Employer's Share of Net OPEB Liability (Asset)
Virginia Sickness and Disability Program (VSDP)
*For the Years Ended June 30
VCCS' Plan Fiduciary Net
Proportion of the VCCS's VCCS' Proportionate Share of Position as a
Net VSDP Proportionate Share the Net VSDP OPEB Liability Percentage of the
OPEB Liability of the Net VSDP VCCS' Covered (Asset) as a Percentage of its Total VSDP OPEB
(Asset) Liability (Asset) Payroll Covered Payroll Liability
2025 (6.73%) $ (23,801,888) $ 380,116,634 (6.26%) 204.38%
2024 (6.91%) $ (21,815,558) $ 349,925,466 (6.23%) 199.05%
2023 (7.14%) $ (21,073,711) $ 328,639,106 (6.41%) 195.90%
2022 (7.15%) $ (24,632,752) $ 308,845,113 (7.98%) 229.01%
2021 (7.25%) $ (15,996,216) $ 314,095,047 (5.09%) 181.88%
2020 (7.52%) $ (14,744,584) $ 304,193,586 (4.85%) 167.18%
2019 (7.74%) $ (17,433,000) $ 305,233,995 (5.71%) 194.74%
2018 (8.11%) $ (16,659,000) $ 306,049,960 (5.44%) 186.63%
*The amounts presented have a measurement date of the previous fiscal year-end.
108
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
Schedule of Employer Contributions
Virginia Sickness and Disability Program (VSDP)
For the Years Ended June 30, 2018 through 2025
Contributions
For the in Relation to
Year Contractually Contractually Contribution
Ended Required Required Deficiency Employer's Contributions as a % of
June 30 Contribution Contribution (Excess) Covered Payroll Covered Payroll
2025 $ 2,022,439 $ 2,022,439 - $ 404,488,869 0.50%
2024 $ 2,318,714 $ 2,318,714 - $ 380,116,634 0.61%
2023 $ 2,134,545 $ 2,134,545 - $ 349,925,466 0.61%
2022 $ 2,004,701 $ 2,004,701 - $ 328,639,106 0.61%
2021 $ 1,883,956 $ 1,883,956 - $ 308,845,113 0.61%
2020 $ 1,947,391 $ 1,947,391 - $ 314,095,047 0.62%
2019 $ 1,885,999 $ 1,885,999 - $ 304,193,586 0.62%
2018 $ 2,014,544 $ 2,014,544 - $ 305,233,995 0.66%
Schedule is intended to show information for 10 years. Since 2025 is the eighth year for this presentation, there are only
eight years available. However, additional years will be included as they become available.
Notes to Required Supplementary Information
Plans Administered by VRS
Health Insurance Credit Program (HIC)
Group Life Insurance Program (GLI)
Line of Duty Act (LODA)
Disability Insurance Program (VSDP)
For the Year Ended June 30, 2025
Changes of benefit terms – There have been no actuarially material changes to the System benefit provisions since
the prior actuarial valuation.
Changes of assumptions – The actuarial assumptions used in the June 30, 2023 valuation were based on the
results of an actuarial experience study for the period from July 1, 2016 through June 30, 2020. Changes to the
actuarial assumptions as a result of the experience study and VRS Board action are as follows:
General State Employees (HIC, GLI, LODA, VSDP)
109
Update to PUB2010 public sector mortality tables. For future
Mortality Rates (Pre-retirement, post-
mortality improvements, replace load with a modified Mortality
retirement healthy, and disabled)
Improvement Scale MP-2020
Adjusted rates to better fit experience for Plan 1; set separate
Retirement Rates rates based on experience for Plan 2/Hybrid; changed final
retirement age from 75 to 80 for all
Adjusted rates to better fit experience at each year age and
Withdrawal Rates
service through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Teachers (GLI)
Mortality Rates (Pre-retirement, Update to PUB2010 public sector mortality tables. For future mortality
post-retirement healthy, and improvements, replace load with a modified Mortality Improvement Scale
disabled) MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates
based on experience for Plan 2/Hybrid; changed final retirement age
from 75 to 80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service
decrement through 9 years of service
Disability Rates No change
Salary Scale No change
Discount Rate No change
SPORS Employees (HIC, GLI, LODA, VSDP)
Mortality Rates (Pre-retirement, Update to PUB2010 public sector mortality tables. For future mortality
post-retirement healthy, and improvements, replace load with a modified Mortality Improvement Scale
disabled) MP-2020
Retirement Rates Increased rates for ages 55 to 61, 63, and 64 with 26 or more years of
service; changed final retirement age from 65 to 70
Withdrawal Rates Decreased rate for 0 years of service and increased rates for 1 to 6
years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
VaLORS Employees (HIC, GLI, LODA, VSDP)
110
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. For future mortality
retirement healthy, and disabled) improvements, replace load with a modified Mortality Improvement
Scale MP-2020
Retirement Rates Increased rates at some younger ages, decreased at age 62, and
changed final retirement age from 65 to 70
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
JRS Employees (HIC, GLI)
Mortality Rates (Pre-retirement, Review separately from State employees because exhibit fewer deaths.
post-retirement healthy, and Update to PUB2010 public sector mortality tables. For future mortality
disabled) improvements, replace load with a modified
Mortality Improvement Scale MP-2020
Retirement Rates Decreased rates for ages 60-66 and 70-72
Withdrawal Rates No change
Disability Rates No change
Salary Scale Reduce increases across all ages by 0.50%
Discount Rate No change
Largest 10 Locality Employers - General Employees (GLI)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. For future mortality
retirement healthy, and disabled) improvements, replace load with a modified Mortality Improvement Scale
MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based
on experience for Plan 2/Hybrid; changed final retirement age from 75 to
80 for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement
through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
111
Non-Largest 10 Locality Employers - General Employees (GLI)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. For future mortality
retirement healthy, and disabled) improvements, replace load with a modified Mortality Improvement Scale
MP-2020
Retirement Rates Adjusted rates to better fit experience for Plan 1; set separate rates based
on experience for Plan 2/Hybrid; changed final retirement age from 75 to 80
for all
Withdrawal Rates Adjusted rates to better fit experience at each age and service decrement
through 9 years of service
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Largest 10 Locality Employers – Hazardous Duty Employees (GLI)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. Increased disability life
retirement healthy, and disabled) expectancy. For future mortality improvements, replace load with a modified
Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age
from 65 to 70
Withdrawal Rates Decreased rates
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
Non-Largest 10 Locality Employers – Hazardous Duty Employees (GLI)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. Increased disability life
retirement healthy, and disabled) expectancy. For future mortality improvements, replace load with a modified
Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age from
65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to rates
based on service only to better fit experience and to be more consistent with
Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Discount Rate No change
112
Employees in the Largest 10 Locality Employers With Public Safety Employees (LODA)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. Increased disability life
retirement healthy, and disabled) expectancy. For future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age
from 65 to 70
Withdrawal Rates Decreased rates
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Employees in the Non-Largest 10 Locality Employers With Public Safety Employees (LODA)
Mortality Rates (Pre-retirement, post- Update to PUB2010 public sector mortality tables. Increased disability life
retirement healthy, and disabled) expectancy. For future mortality improvements, replace load with a
modified Mortality Improvement Scale MP-2020
Retirement Rates Adjusted rates to better fit experience and changed final retirement age
from 65 to 70
Withdrawal Rates Decreased rates and changed from rates based on age and service to
rates based on service only to better fit experience and to be more
consistent with Locals Top 10 Hazardous Duty
Disability Rates No change
Salary Scale No change
Line of Duty Disability No change
Required Supplementary Information
Commonwealth of Virginia State Health Plans
Program for Pre-Medicare Retirees
For the Fiscal Year Ended June 30, 2025
113
Schedule of Employer's Share of Total OPEB Liability
Pre-Medicare Retiree Program
*For the Years Ended June 30
VCCS' VCCS's VCCS' Proportionate Share of
Proportion of the Proportionate Share the Net VSDP OPEB Liability
collective total of the collective total VCCS' Covered (Asset) as a Percentage of its
OPEB Liability OPEB Liability Payroll Covered Payroll
2025 6.51% $ 23,206,225 $ 417,100,274 5.56%
2024 6.55% $ 23,064,516 $ 374,091,462 6.17%
2023 6.62% $ 24,066,524 $ 362,456,806 6.64%
2022 6.56% $ 29,447,302 $ 345,959,338 8.51%
2021 6.65% $ 37,813,303 $ 363,562,657 10.40%
2020 6.77% $ 45,992,947 $ 348,687,142 13.19%
2019 6.91% $ 69,451,303 $ 356,495,630 19.48%
2018 7.14% $ 92,753,806 $ 326,278,349 28.43%
*The amounts presented have a measurement date of the previous fiscal year-end.
Schedule is intended to show information for 10 years. Since 2018 was the first year for this presentation, only eight years
of data are available. However, additional years will be added as they become available.
*The amounts presented have a measurement date of the previous fiscal year end.
Notes to Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
There are no assets accumulated in a trust to pay related benefits.
Changes of benefit terms – There have been no changes to the benefit provisions since the prior actuarial valuation.
Changes of assumptions – There were not any changes in assumptions since the June 30, 2022, measurement date.
The following remained constant since the prior year measurement date:
• Spousal Coverage – rate remained at 20 percent
• Retiree Participation – rate remained at 35 percent
Retiree participation was based on a blend of recent experience and the prior year assumptions.
The trend rates were updated based on economic conditions as of June 30, 2024. Additionally, the discount rate was
increased from 3.65 percent to 3.93 percent based on the Bond Buyers GO 20 Municipal Bond Index as of June 30, 2024.
114
INDIVIDUAL
COLLEGE
FINANCIAL
STATEMENTS
115
Virginia Community College System
Blue Ridge Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Blue Ridge
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 13,520,801 211,236
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 181,087
Pledges receivable (Note 3) 45,611
Due from commonwealth (Note 4) 323,393
Due from system office 343,274
Interest receivable 57,112
Prepaid expenses 157,064 6,677
Inventories 15,856
Notes receivable, net (Note 3)
Total Current Assets 14,598,587 263,524
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 3,129,063
Prepaid expenses 1,111
Endowment cash and cash equivalents (Note 2) 13,491
Appropriation available
Endowment investments (Note 2) 14,335,712
Other long-term investments (Note 2) 6,609,995
Accounts receivable, net (Note 3)
Investments in real estate (Note 2) 392,205
Pledges receivable (Note 3) 159,638
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 703,339
Non-depreciable capital assets, net (Note 5) 1,441,382 3,600
Depreciable capital assets, net (Note 5) 61,623,783
Total Noncurrent Assets 66,898,678 21,514,641
Total Assets 81,497,265 21,778,165
Deferred Outflows of Resources (Note 8) 4,077,073
Total Assets and Deferred Outflows of Resources 85,574,338 21,778,165
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,034,239 558
Accrued payroll expense 2,272,668
Unearned revenue 1,119,792
Long-term liabilities-current portion (Note 9) 1,518,685 15,540
Securities lending obligation 68
Post employment benefit obligations (Note 9) 74,272
Due to system's office
Deposits 143,631
Total Current Liabilities 6,163,355 16,098
116
Virginia Community College System
Blue Ridge Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Blue Ridge
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Account payable for noncurrent assets
Long-term liabilities (Note 9) 6,694,511 33,209
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 12,295,544
Total Noncurrent Liabilities 18,990,055 33,209
Total Liabilities 25,153,410 49,307
Deferred Inflows of Resources (Note 8) 2,359,593
Total Liabilities and Deferred Inflows of Resources 27,513,003 49,307
Net Position
Net investment in capital assets 56,066,982 3,600
Restricted for:
Nonexpendable 9,137,724
Expendable 6,294,868 5,499,927
Unrestricted (4,300,515) 7,087,607
Total Net Position 58,061,335 21,728,858
The accompanying Notes to the Financial Statements are an integral part of this statement.
117
Virginia Community College System
Blue Ridge Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Blue Ridge
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $6,447,341) 5,845,632
Federal grants and contracts 467,369
State and local grants 2,049,598
Nongovernmental grants 1,056,534
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $20,631) 1,453,475
Gifts and contributions 926,346
Endowment income 1,235,030
Other operating revenues 400,243 794,847
Total Operating Revenue 11,272,851 2,956,223
Expenses
Operating Expenses
Instruction 15,459,278 670,075
Public service 54,486 26,090
Academic support 1,868,089 60,746
Student services 3,038,173
Institutional support 6,408,456 268,302
Operation and maintenance 5,433,553
Scholarships and fellowships 5,967,353 895,386
Auxiliary enterprises 426,379
Fundraising 68,349
Other expenses
Total Operating Expenses (Note 12) 38,655,767 1,988,948
Operating Income (Loss) (27,382,916) 967,275
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 18,524,160
Local appropriations 26,000
Grants and gifts 7,230,989
Investment income 451,347 582,017
Interest on capital asset related debt (268,692)
Other nonoperating revenue (expense) 418,857
Net Nonoperating Revenue 26,382,661 582,017
Income before other revenues, expenses
gains (losses) (1,000,255) 1,549,292
Capital appropriations-state (Note 20)
Capital appropriations-local 300,001
Capital gifts, grants and contracts 128,399
Additions to permanent and term endowments 582,065
Increase (Decrease) in Net Position (571,855) 2,131,357
Net Position
Net Position beginning of year (Note 1-V) 58,633,190 19,597,501
Net Position end of year 58,061,335 21,728,858
The accompanying Notes to the Financial Statements are an integral part of this statement.
118
Virginia Community College System
Blue Ridge Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 6,074,832
Grants and contracts 3,363,137
Payments to suppliers and others (6,584,415)
Payments for employee wages (16,540,655)
Payments for employee fringes and pension benefits (6,514,252)
Payment for scholarships (6,019,138)
Payments for utilities (781,521)
Sales and services of education department
Auxiliary 1,453,475
Custodial receipts 6,980,475
Custodial disbursements (6,950,499)
PLUS, Stafford and Direct Lending loan receipts 921,254
PLUS, Stafford and Direct Lending loan disbursements (921,254)
Loans issued to students
Loans collected from students
Other 400,243
Net cash used by operating activities (25,118,318)
Cash flows from non-capital financing activities:
State appropriations 18,524,160
Local appropriations 26,000
Grants and gifts 7,280,266
Borrowings
Loan repayments
Other non-operating revenue(expense) 406,277
Net cash provided (used) by non-capital financing activities 26,236,703
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local 300,001
Capital grants and gifts 117,434
Purchase capital assets (395,230)
Proceeds from sale of capital assets 8,379
Debt interest payments (304,784)
Debt principal payments (986,636)
Net cash provided (used) by capital financing activities (1,260,836)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 458,885
Net cash provided (used) by investing activities 458,885
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 316,434
Cash and cash equivalents, beginning of year 16,333,362
Cash and cash equivalents, End of Year 16,649,796
119
Virginia Community College System
Blue Ridge Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (27,382,916)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 2,519,931
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 7,100
Prepaid expenses and other 15,380
Post employment benefits asset (53,103)
Accrued compensation and leave (217,280)
Accounts payable and other 572,782
Unearned revenue 8,602
Deposits pending distribution
Custodial receipts(disbursements) 29,976
Stafford and Direct Loan receipts(disbursements)
Pension liability (534,976)
Post employment benefits liability (261,707)
Deferred inflows of resources related to pensions and post employment benefits 225,158
Deferred outlflows of resources related to pensions and post employment benefits (47,265)
Net cash used in operating activities (25,118,318)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 16,649,864
Less: Securities Lending Cash Equivalents 68
Cash and cash equivalents end of year 16,649,796
Noncash transactions
Donated capital assets 10,965
VRS Special Revenue Allocation 74,812
Amortization of bond premium 29,563
Amortization of deferral on debt defeasance (5,200)
Capital assets acquired through the assumption of a liability 396,763
Retainage payable 27,136
The accompanying Notes to the Financial Statements are an integral part of this statement.
120
Virginia Community College System
Central Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Central
Virginia
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 8,598,949 536,380
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 302,773 317,005
Pledges receivable (Note 3)
Due from commonwealth (Note 4) 702,991
Due from system office 332,172
Interest receivable
Prepaid expenses 413,865
Inventories 45,252
Notes receivable, net (Note 3)
Total Current Assets 10,396,002 853,385
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 186,420
Appropriation available
Endowment investments (Note 2) 2,712,388
Other long-term investments (Note 2) 3,204,801
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 593,571
Non-depreciable capital assets, net (Note 5) 1,997,314
Depreciable capital assets, net (Note 5) 14,734,746
Total Noncurrent Assets 17,325,631 6,103,609
Total Assets 27,721,633 6,956,994
Deferred Outflows of Resources (Note 8) 3,618,920
Total Assets and Deferred Outflows of Resources 31,340,553 6,956,994
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 559,976 519
Accrued payroll expense 1,019,438
Unearned revenue 984,831
Long-term liabilities-current portion (Note 9) 811,577
Securities lending obligation 21
Post employment benefit obligations (Note 9) 64,973
Due to system's office
Deposits 388,527
Total Current Liabilities 3,829,343 519
121
Virginia Community College System
Central Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Central
Virginia
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue 325,191
Account payable for noncurrent assets
Long-term liabilities (Note 9) 814,364
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 11,040,118
Total Noncurrent Liabilities 12,179,673
Total Liabilities 16,009,016 519
Deferred Inflows of Resources (Note 8) 2,404,232
Total Liabilities and Deferred Inflows of Resources 18,413,248 519
Net Position
Net investment in capital assets 16,098,104
Restricted for:
Nonexpendable 1,177,273
Expendable 999,911 3,982,699
Unrestricted (4,170,710) 1,796,503
Total Net Position 12,927,305 6,956,475
The accompanying Notes to the Financial Statements are an integral part of this statement.
122
Virginia Community College System
Central Virginia Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Central
Virginia
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,555,361) 9,195,429
Federal grants and contracts 936,422
State and local grants 2,073,174
Nongovernmental grants
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $17,514) 176,836
Gifts and contributions 1,489,085
Endowment income 294,796
Other operating revenues 179,106 202,807
Total Operating Revenue 12,560,967 1,986,688
Expenses
Operating Expenses
Instruction 15,036,038
Public service 174,074
Academic support 2,788,074
Student services 3,362,869
Institutional support 3,472,241 1,224,509
Operation and maintenance 5,621,169
Scholarships and fellowships 6,923,610 374,033
Auxiliary enterprises 75,552
Fundraising 24,332
Other expenses
Total Operating Expenses (Note 12) 37,453,627 1,622,874
Operating Income (Loss) (24,892,660) 363,814
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 18,272,195
Local appropriations 6,350
Grants and gifts 7,471,428
Investment income 31,918 348,384
Interest on capital asset related debt (59,953)
Other nonoperating revenue (expense) 636,879
Net Nonoperating Revenue 26,358,817 348,384
Income before other revenues, expenses
gains (losses) 1,466,157 712,198
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 756,290
Additions to permanent and term endowments 52,356
Increase (Decrease) in Net Position 2,222,447 764,554
Net Position
Net Position beginning of year (Note 1-V) 10,704,858 6,191,921
Net Position end of year 12,927,305 6,956,475
The accompanying Notes to the Financial Statements are an integral part of this statement.
123
Virginia Community College System
Central Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 9,280,910
Grants and contracts 3,037,368
Payments to suppliers and others (6,995,527)
Payments for employee wages (16,440,080)
Payments for employee fringes and pension benefits (5,609,215)
Payment for scholarships (7,138,018)
Payments for utilities (627,644)
Sales and services of education department
Auxiliary 175,854
Custodial receipts 126,587
Custodial disbursements (104,654)
PLUS, Stafford and Direct Lending loan receipts 945,163
PLUS, Stafford and Direct Lending loan disbursements (943,037)
Loans issued to students
Loans collected from students
Other 179,106
Net cash used by operating activities (24,113,187)
Cash flows from non-capital financing activities:
State appropriations 18,272,195
Local appropriations 6,350
Grants and gifts 7,383,169
Borrowings
Loan repayments
Other non-operating revenue(expense) 299,253
Net cash provided (used) by non-capital financing activities 25,960,967
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 292,642
Purchase capital assets (779,244)
Proceeds from sale of capital assets 21,312
Debt interest payments (62,100)
Debt principal payments (275,032)
Net cash provided (used) by capital financing activities (802,422)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 31,917
Net cash provided (used) by investing activities 31,917
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 1,077,275
Cash and cash equivalents, beginning of year 7,521,653
Cash and cash equivalents, End of Year 8,598,928
124
Virginia Community College System
Central Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (24,892,660)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,499,637
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (169,271)
Prepaid expenses and other (23,984)
Post employment benefits asset (31,182)
Accrued compensation and leave (4,879)
Accounts payable and other (109,135)
Unearned revenue 280,190
Deposits pending distribution
Custodial receipts(disbursements) 15,239
Stafford and Direct Loan receipts(disbursements) 2,126
Pension liability (818,519)
Post employment benefits liability (235,532)
Deferred inflows of resources related to pensions and post employment benefits 459,609
Deferred outlflows of resources related to pensions and post employment benefits (84,826)
Net cash used in operating activities (24,113,187)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 8,598,949
Less: Securities Lending Cash Equivalents 21
Cash and cash equivalents end of year 8,598,928
Noncash transactions
Donated capital assets 463,648
VRS Special Revenue Allocation 62,785
Capital assets acquired through the assumption of a liability 459,547
Retainage payable 63,644
The accompanying Notes to the Financial Statements are an integral part of this statement.
125
Virginia Community College System
Mountain Gateway Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Mountain Mountain
Gateway Gateway
Community Community
College College Real
Community Educational Estate
College Foundation Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 3,825,146 753,561 655,047
Appropriation available
Short term investments (Note 2) 701,437 75,600
Accounts receivable, net (Note 3) 458,319 - 278,858
Pledges receivable (Note 3) 38,000 2,000
Due from commonwealth (Note 4) - -
Due from system office 67,195 - -
Interest receivable 17,192 -
Prepaid expenses 130,464 - -
Inventories 31,619 - -
Notes receivable, net (Note 3) - -
Total Current Assets 4,512,743 1,510,190 1,011,505
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses 1,108
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 8,132,589
Other long-term investments (Note 2) 306,606 4,496
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 38,000 4,000
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 246,218
Non-depreciable capital assets, net (Note 5) 582,168 190,215
Depreciable capital assets, net (Note 5) 11,054,262 6,245,171
Total Noncurrent Assets 11,883,756 8,477,195 6,443,882
Total Assets 16,396,499 9,987,385 7,455,387
Deferred Outflows of Resources (Note 8) 1,449,991
Total Assets and Deferred Outflows of Resources 17,846,490 9,987,385 7,455,387
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 318,655 4,039 270,744
Accrued payroll expense 484,357
Unearned revenue 77,444
Long-term liabilities-current portion (Note 9) 328,829 6,734
Securities lending obligation 8
Post employment benefit obligations (Note 9) 25,410
Due to system's office
Deposits 60,200 83,050
Total Current Liabilities 1,294,903 4,039 360,528
126
Virginia Community College System
Mountain Gateway Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Mountain Mountain
Gateway Gateway
Community Community
College College Real
Community Educational Estate
College Foundation Foundation
Noncurrent Liabilities
Unearned revenue
Account payable for noncurrent assets
Long-term liabilities (Note 9) 454,289 483,752
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 4,389,741
Total Noncurrent Liabilities 4,844,030 483,752
Total Liabilities 6,138,933 4,039 844,280
Deferred Inflows of Resources (Note 8) 806,972
Total Liabilities and Deferred Inflows of Resources 6,945,905 4,039 844,280
Net Position
Net investment in capital assets 11,368,471 5,944,900
Restricted for:
Nonexpendable 4,354,095
Expendable 1,013,120 4,215,780 69,845
Unrestricted (1,481,006) 1,413,471 596,362
Total Net Position 10,900,585 9,983,346 6,611,107
The accompanying Notes to the Financial Statements are an integral part of this statement.
127
Virginia Community College System
Mountain Gateway Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Component
Unit Unit
Mountain Mountain
Gateway Gateway
Community Community
College College Real
Community Educational Estate
Revenues College Foundation Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $1,262,202) 1,653,538
Federal grants and contracts 1,182,344 2,159,880
State and local grants 1,871,685 650,000
Nongovernmental grants 372,725 395,000
Sales/services of education department 2,224
Auxiliary enterprises (net of scholarship allowance of $4,015) 19,353
Gifts and contributions 181,368 70,606
Endowment income 776,290
Other operating revenues 267,980 161,674 1,110,289
Total Operating Revenue 5,369,849 1,119,332 4,385,775
Expenses
Operating Expenses
Instruction 5,809,330
Public service
Academic support 1,920,580 334,424 309,133
Student services 1,670,209
Institutional support 2,380,403 79,875 12,893
Operation and maintenance 1,697,953 21,173
Scholarships and fellowships 1,757,776 146,470
Auxiliary enterprises
Fundraising 51,280 9,880
Other expenses 32,475
Total Operating Expenses (Note 12) 15,236,251 612,049 385,554
Operating Income (Loss) (9,866,402) 507,283 4,000,221
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 7,236,970
Local appropriations 111,689
Grants and gifts 1,577,390
Investment income 32,196 62,309 8,169
Interest on capital asset related debt (6,428)
Other nonoperating revenue (expense) 403,056
Net Nonoperating Revenue 9,354,873 62,309 8,169
Income before other revenues, expenses
gains (losses) (511,529) 569,592 4,008,390
Capital appropriations-state (Note 20)
Capital appropriations-local 17,000
Capital gifts, grants and contracts 938,271
Additions to permanent and term endowments 111,900
Increase (Decrease) in Net Position 443,742 681,492 4,008,390
Net Position
Net Position beginning of year (Note 1-V) 10,456,843 9,301,854 2,602,717
Net Position end of year 10,900,585 9,983,346 6,611,107
The accompanying Notes to the Financial Statements are an integral part of this statement.
128
Virginia Community College System
Mountain Gateway Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 1,613,210
Grants and contracts 3,531,206
Payments to suppliers and others (3,981,019)
Payments for employee wages (5,971,203)
Payments for employee fringes and pension benefits (2,350,338)
Payment for scholarships (1,757,804)
Payments for utilities (318,585)
Sales and services of education department 2,224
Auxiliary 19,353
Custodial receipts 267,573
Custodial disbursements (322,488)
PLUS, Stafford and Direct Lending loan receipts 195,348
PLUS, Stafford and Direct Lending loan disbursements (195,348)
Loans issued to students
Loans collected from students
Other 267,945
Net cash used by operating activities (8,999,926)
Cash flows from non-capital financing activities:
State appropriations 7,236,970
Local appropriations 111,689
Grants and gifts 1,819,458
Borrowings
Loan repayments
Other non-operating revenue(expense) 507,034
Net cash provided (used) by non-capital financing activities 9,675,151
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local 17,000
Capital grants and gifts 771,910
Purchase capital assets (1,320,777)
Proceeds from sale of capital assets 2,358
Debt interest payments (881)
Debt principal payments (294,919)
Net cash provided (used) by capital financing activities (825,309)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 32,195
Net cash provided (used) by investing activities 32,195
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (117,889)
Cash and cash equivalents, beginning of year 3,943,027
Cash and cash equivalents, End of Year 3,825,138
129
Virginia Community College System
Mountain Gateway Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (9,866,402)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 997,488
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (13,355)
Prepaid expenses and other 78,426
Post employment benefits asset (36,159)
Accrued compensation and leave 115,775
Accounts payable and other (31,800)
Unearned revenue 77,444
Deposits pending distribution
Custodial receipts(disbursements) (54,915)
Stafford and Direct Loan receipts(disbursements)
Pension liability (55,808)
Post employment benefits liability (56,114)
Deferred inflows of resources related to pensions and post employment benefits (8,312)
Deferred outlflows of resources related to pensions and post employment benefits (146,194)
Net cash used in operating activities (8,999,926)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 3,825,146
Less: Securities Lending Cash Equivalents 8
Cash and cash equivalents end of year 3,825,138
Noncash transactions
Donated capital assets 166,361
VRS Special Revenue Allocation 25,138
Capital assets acquired through the assumption of a liability 353,056
Retainage payable 12,130
The accompanying Notes to the Financial Statements are an integral part of this statement.
130
Virginia Community College System
Danville Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Danville
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 9,777,927 1,258,537
Appropriation available 1,364
Short term investments (Note 2) 666,142
Accounts receivable, net (Note 3) 3,376,540 738,682
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from system office 53,589
Interest receivable 71,679
Prepaid expenses 229,149
Inventories 306,177
Notes receivable, net (Note 3)
Total Current Assets 14,410,888 2,068,898
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 747,111
Appropriation available 2,500,000
Endowment investments (Note 2) 17,842,453
Other long-term investments (Note 2) 184,886
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 453,759
Non-depreciable capital assets, net (Note 5) 944,152
Depreciable capital assets, net (Note 5) 24,953,831 4,184
Total Noncurrent Assets 28,851,742 18,778,634
Total Assets 43,262,630 20,847,532
Deferred Outflows of Resources (Note 8) 2,662,534
Total Assets and Deferred Outflows of Resources 45,925,164 20,847,532
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 478,449 18,926
Accrued payroll expense 1,873,808
Unearned revenue 663,459
Long-term liabilities-current portion (Note 9) 413,033
Securities lending obligation 7,635
Post employment benefit obligations (Note 9) 41,427
Due to system's office
Deposits 518,301
Total Current Liabilities 3,996,112 18,926
131
Virginia Community College System
Danville Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Danville
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Account payable for noncurrent assets
Long-term liabilities (Note 9) 296,836
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 8,279,194
Total Noncurrent Liabilities 8,576,030
Total Liabilities 12,572,142 18,926
Deferred Inflows of Resources (Note 8) 1,826,940
Total Liabilities and Deferred Inflows of Resources 14,399,082 18,926
Net Position
Net investment in capital assets 25,897,983 4,184
Restricted for:
Nonexpendable 10,615,021
Expendable 5,937,881 4,995,330
Unrestricted (309,782) 5,214,071
Total Net Position 31,526,082 20,828,606
The accompanying Notes to the Financial Statements are an integral part of this statement.
132
Virginia Community College System
Danville Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Danville
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $4,353,941) 2,354,204
Federal grants and contracts 1,454,564
State and local grants 933,643
Nongovernmental grants 31,423 289,043
Sales/services of education department 135
Auxiliary enterprises (net of scholarship allowance of $481,185) 220,320
Gifts and contributions 19,519
Endowment income 1,785,650
Other operating revenues 343,295 240,684
Total Operating Revenue 5,337,584 2,334,896
Expenses
Operating Expenses
Instruction 10,183,295
Public service 493,896
Academic support 1,587,560
Student services 2,177,191
Institutional support 5,308,990 548,280
Operation and maintenance 2,922,836
Scholarships and fellowships 3,678,390 225,693
Auxiliary enterprises 885,978
Fundraising 320,899
Other expenses
Total Operating Expenses (Note 12) 27,238,136 1,094,872
Operating Income (Loss) (21,900,552) 1,240,024
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 16,047,915
Local appropriations 27,000
Grants and gifts 5,676,562
Investment income 49,595
Interest on capital asset related debt (1,135)
Other nonoperating revenue (expense) 286,893
Net Nonoperating Revenue 22,086,830
Income before other revenues, expenses
gains (losses) 186,278 1,240,024
Capital appropriations-state (Note 20) 2,500,000
Capital appropriations-local
Capital gifts, grants and contracts 92,102
Additions to permanent and term endowments 283,693
Increase (Decrease) in Net Position 2,778,380 1,523,717
Net Position
Net Position beginning of year (Note 1-V) 28,747,702 19,304,889
Net Position end of year 31,526,082 20,828,606
The accompanying Notes to the Financial Statements are an integral part of this statement.
133
Virginia Community College System
Danville Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 1,875,021
Grants and contracts 2,470,764
Payments to suppliers and others (6,412,278)
Payments for employee wages (11,310,705)
Payments for employee fringes and pension benefits (4,080,392)
Payment for scholarships (3,665,897)
Payments for utilities (789,278)
Sales and services of education department 135
Auxiliary 220,297
Custodial receipts 338,838
Custodial disbursements (315,246)
PLUS, Stafford and Direct Lending loan receipts 612,494
PLUS, Stafford and Direct Lending loan disbursements (621,029)
Other 343,295
Net cash used by operating activities (21,333,981)
Cash flows from non-capital financing activities:
State appropriations 16,047,915
Local appropriations 27,000
Grants and gifts 5,676,562
Other non-operating revenue(expense) 323,623
Net cash provided (used) by non-capital financing activities 22,075,100
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 92,102
Purchase capital assets (121,107)
Proceeds from sale of capital assets
Debt interest payments (79)
Debt principal payments (15,132)
Net cash provided (used) by capital financing activities (44,216)
Cash flows from investing activities:
Sale of investments 24,994
Investment income 34,972
Net cash provided (used) by investing activities 59,966
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 756,869
Cash and cash equivalents, beginning of year 9,013,423
Cash and cash equivalents, End of Year 9,770,292
134
Virginia Community College System
Danville Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (21,900,552)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,593,598
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (337,537)
Prepaid expenses and other (67,692)
Post employment benefits asset (32,377)
Accrued compensation and leave 49,246
Accounts payable and other (5,089)
Unearned revenue (93,263)
Custodial receipts(disbursements) 23,592
Stafford and Direct Loan receipts(disbursements) (8,535)
Pension liability (515,325)
Post employment benefits liability (187,490)
Deferred inflows of resources related to pensions and post employment benefits 130,711
Deferred outlflows of resources related to pensions and post employment benefits 15,368
Net cash used in operating activities (21,333,981)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 9,777,927
Less: Securities Lending Cash Equivalents 7,635
Cash and cash equivalents end of year 9,770,292
Noncash transactions
VRS Special Revenue Allocation 47,721
Unrealized gain/loss on investments 14,417
Capital assets acquired through the assumption of a liability -
Retainage payable 11,306
The accompanying Notes to the Financial Statements are an integral part of this statement.
135
Virginia Community College System
Eastern Shore Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Eastern Shore
Community
Community College
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 1,712,608 208,009
Appropriation available
Short term investments (Note 2) 1,061,902
Accounts receivable, net (Note 3) 1,194,526
Pledges receivable (Note 3) 13,950
Due from commonwealth (Note 4)
Due from system office
Interest receivable
Prepaid expenses 16,630
Inventories 16,000
Notes receivable, net (Note 3)
Total Current Assets 2,939,764 1,283,861
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 215,316
Appropriation available
Endowment investments (Note 2) 1,489,784
Other long-term investments (Note 2) 2,690,745
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 18,966
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 172,048
Non-depreciable capital assets, net (Note 5) 1,204,413
Depreciable capital assets, net (Note 5) 20,224,088
Total Noncurrent Assets 21,600,549 4,414,811
Total Assets 24,540,313 5,698,672
Deferred Outflows of Resources (Note 8) 1,110,478
Total Assets and Deferred Outflows of Resources 25,650,791 5,698,672
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 276,533 55,684
Accrued payroll expense 527,907
Unearned revenue 19,880
Long-term liabilities-current portion (Note 9) 214,782
Securities lending obligation 2
Post employment benefit obligations (Note 9) 17,820
Due to system's office
Deposits 206,998
Total Current Liabilities 1,263,922 55,684
136
Virginia Community College System
Eastern Shore Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Eastern Shore
Community
Community College
College Foundation
Noncurrent Liabilities
Unearned revenue
Account payable for noncurrent assets
Long-term liabilities (Note 9) 205,775
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 3,084,011
Total Noncurrent Liabilities 3,289,786
Total Liabilities 4,553,708 55,684
Deferred Inflows of Resources (Note 8) 613,188
Total Liabilities and Deferred Inflows of Resources 5,166,896 55,684
Net Position
Net investment in capital assets 21,321,560
Restricted for:
Nonexpendable 1,705,100
Expendable 692,908 2,815,623
Unrestricted (1,530,573) 1,122,265
Total Net Position 20,483,895 5,642,988
The accompanying Notes to the Financial Statements are an integral part of this statement.
137
Virginia Community College System
Eastern Shore Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Eastern Shore
Community
Community College
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $2,859,401) 515,467
Federal grants and contracts 871,530
State and local grants 1,040,700
Nongovernmental grants 8,867
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $9,149) 52,883
Gifts and contributions 607,895
Endowment income 169,592
Other operating revenues 4,769 82,527
Total Operating Revenue 2,494,216 860,014
Expenses
Operating Expenses
Instruction 5,061,298
Public service 84,107
Academic support 341,446 248,733
Student services 1,152,534
Institutional support 2,312,137 164,392
Operation and maintenance 650,033
Scholarships and fellowships 1,242,446 313,734
Auxiliary enterprises 7,639
Fundraising 32,472
Other expenses
Total Operating Expenses (Note 12) 10,851,640 759,331
Operating Income (Loss) (8,357,424) 100,683
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 6,265,397
Local appropriations 59,406
Grants and gifts 2,103,493
Investment income 14,753 409,827
Interest on capital asset related debt (1,427)
Other nonoperating revenue (expense) (50,326)
Net Nonoperating Revenue 8,391,296 409,827
Income before other revenues, expenses
gains (losses) 33,872 510,510
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 252,881
Additions to permanent and term endowments
Increase (Decrease) in Net Position 286,753 510,510
Net Position
Net Position beginning of year (Note 1-V) 20,197,142 5,132,478
Net Position end of year 20,483,895 5,642,988
The accompanying Notes to the Financial Statements are an integral part of this statement.
138
Virginia Community College System
Eastern Shore Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 742,504
Grants and contracts 1,912,230
Payments to suppliers and others (2,882,441)
Payments for employee wages (4,428,828)
Payments for employee fringes and pension benefits (1,749,923)
Payment for scholarships (1,240,384)
Payments for utilities (167,991)
Sales and services of education department
Auxiliary 52,883
Custodial receipts 83,870
Custodial disbursements (61,448)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 4,769
Net cash used by operating activities (7,734,759)
Cash flows from non-capital financing activities:
State appropriations 6,265,397
Local appropriations 59,406
Grants and gifts 2,103,493
Borrowings
Loan repayments
Other non-operating revenue(expense) (50,326)
Net cash provided (used) by non-capital financing activities 8,377,970
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 247,793
Purchase capital assets (517,252)
Proceeds from sale of capital assets
Debt interest payments (1,845)
Debt principal payments (95,502)
Net cash provided (used) by capital financing activities (366,806)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 14,753
Net cash provided (used) by investing activities 14,753
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 291,158
Cash and cash equivalents, beginning of year 1,421,448
Cash and cash equivalents, End of Year 1,712,606
139
Virginia Community College System
Eastern Shore Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (8,357,424)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 814,139
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 220,886
Prepaid expenses and other 10,715
Post employment benefits asset (29,271)
Accrued compensation and leave 116,715
Accounts payable and other (307,270)
Unearned revenue (2,716)
Deposits pending distribution
Custodial receipts(disbursements) 22,422
Stafford and Direct Loan receipts(disbursements)
Pension liability 32,869
Post employment benefits liability (57,745)
Deferred inflows of resources related to pensions and post employment benefits (39,692)
Deferred outlflows of resources related to pensions and post employment benefits (158,387)
Net cash used in operating activities (7,734,759)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 1,712,608
Less: Securities Lending Cash Equivalents 2
Cash and cash equivalents end of year 1,712,606
Noncash transactions
Donated capital assets 5,088
VRS Special Revenue Allocation 18,089
Capital assets acquired through the assumption of a liability 189,703
The accompanying Notes to the Financial Statements are an integral part of this statement.
140
Virginia Community College System
Germanna Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Germanna
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 16,328,078 1,157,204
Appropriation available
Short term investments (Note 2) 1,447,610
Accounts receivable, net (Note 3) 1,392,112 164,247
Pledges receivable (Note 3) 620,000
Due from commonwealth (Note 4) 479,645
Due from system office 182,822
Interest receivable
Prepaid expenses 433,686
Inventories 8,129
Notes receivable, net (Note 3)
Total Current Assets 20,272,082 1,941,451
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 3,840,236
Prepaid expenses 32,780
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 5,330,595
Other long-term investments (Note 2) 373,074 8,040,698
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 99,369
Due from commonwealth (Note 4) 56,988
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 1,223,023
Non-depreciable capital assets, net (Note 5) 5,720,483 13,329,815
Depreciable capital assets, net (Note 5) 56,714,905 6,925,889
Total Noncurrent Assets 67,961,489 33,726,366
Total Assets 88,233,571 35,667,817
Deferred Outflows of Resources (Note 8) 8,058,655
Total Assets and Deferred Outflows of Resources 96,292,226 35,667,817
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,655,368 132,961
Accrued payroll expense 4,005,019
Unearned revenue 3,870,690
Long-term liabilities-current portion (Note 9) 2,085,612 317,394
Securities lending obligation 4,751
Post employment benefit obligations (Note 9) 93,829
Due to system's office
Deposits 106,878
Total Current Liabilities 11,822,147 450,355
141
Virginia Community College System
Germanna Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Germanna
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue 137,566
Long-term liabilities (Note 9) 17,896,450 11,459,002
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 20,698,752
Total Noncurrent Liabilities 38,732,768 11,459,002
Total Liabilities 50,554,915 11,909,357
Deferred Inflows of Resources (Note 8) 3,493,706
Total Liabilities and Deferred Inflows of Resources 54,048,621 11,909,357
Net Position
Net investment in capital assets 44,574,523
Restricted for:
Nonexpendable 3,960,227
Expendable 6,034,695 10,973,350
Unrestricted (8,365,613) 8,824,883
Total Net Position 42,243,605 23,758,460
The accompanying Notes to the Financial Statements are an integral part of this statement.
142
Virginia Community College System
Germanna Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Germanna
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $15,113,088) 13,607,958
Federal grants and contracts 2,591,919
State and local grants 4,597,234
Nongovernmental grants 778,158
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $48,330) 1,096,862
Gifts and contributions 1,328,154
Endowment income 410,962
Other operating revenues 418,936 5,043,732
Total Operating Revenue 23,091,067 6,782,848
Expenses
Operating Expenses
Instruction 29,932,761
Public service 179,205
Academic support 10,293,225 139,665
Student services 9,039,725
Institutional support 10,860,025 1,685,949
Operation and maintenance 5,677,515
Scholarships and fellowships 8,245,949 1,107,057
Auxiliary enterprises 93,488
Fundraising 277,759
Other expenses
Total Operating Expenses (Note 12) 74,321,893 3,210,430
Operating Income (Loss) (51,230,826) 3,572,418
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 36,574,347
Local appropriations 253,618
Grants and gifts 14,045,063
Investment income 264,971 704,125
Interest on capital asset related debt (709,479)
Other nonoperating revenue (expense) 63,808
Net Nonoperating Revenue 50,492,328 704,125
Income before other revenues, expenses
gains (losses) (738,498) 4,276,543
Capital appropriations-state (Note 20) 657,786
Capital appropriations-local 288,069
Capital gifts, grants and contracts 769,261
Additions to permanent and term endowments 185,625
Increase (Decrease) in Net Position 976,618 4,462,168
Net Position
Net Position beginning of year (Note 1-V) 41,266,987 19,296,292
Net Position end of year 42,243,605 23,758,460
The accompanying Notes to the Financial Statements are an integral part of this statement.
143
Virginia Community College System
Germanna Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 13,610,480
Grants and contracts 7,808,819
Payments to suppliers and others (13,619,185)
Payments for employee wages (35,934,465)
Payments for employee fringes and pension benefits (11,314,598)
Payment for scholarships (8,276,152)
Payments for utilities (785,898)
Sales and services of education department
Auxiliary 1,096,862
Custodial receipts 302,284
Custodial disbursements (278,687)
PLUS, Stafford and Direct Lending loan receipts 2,047,510
PLUS, Stafford and Direct Lending loan disbursements (2,047,510)
Loans issued to students
Loans collected from students
Other 402,405
Net cash used by operating activities (46,988,135)
Cash flows from non-capital financing activities:
State appropriations 36,574,347
Local appropriations 253,618
Grants and gifts 13,568,688
Borrowings
Loan repayments
Other non-operating revenue(expense) (107,641)
Net cash provided (used) by non-capital financing activities 50,289,012
Cash flows from capital and related financing activities:
Capital appropriations-state 2,577,112
Capital appropriations-local 288,069
Capital grants and gifts 597,492
Purchase capital assets (3,988,276)
Proceeds from sale of capital assets 8,340
Debt interest payments (1,282,396)
Debt principal payments (1,154,932)
Net cash provided (used) by capital financing activities (2,954,591)
Cash flows from investing activities:
Purchases of investments (964,738)
Sale of investments 860,371
Investment income 254,332
Net cash provided (used) by investing activities 149,965
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 496,251
Cash and cash equivalents, beginning of year 19,667,312
Cash and cash equivalents, End of Year 20,163,563
144
Virginia Community College System
Germanna Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (51,230,826)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 3,177,660
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (167,220)
Prepaid expenses and other 63,870
Post employment benefits asset (136,750)
Accrued compensation and leave 875,120
Accounts payable and other 828,978
Unearned revenue 132,298
Deposits pending distribution 211
Custodial receipts(disbursements) 23,597
Stafford and Direct Loan receipts(disbursements)
Pension liability (219,210)
Post employment benefits liability (251,815)
Deferred inflows of resources related to pensions and post employment benefits 283,918
Deferred outlflows of resources related to pensions and post employment benefits (367,966)
Net cash used in operating activities (46,988,135)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 20,168,314
Less: Securities Lending Cash Equivalents 4,751
Cash and cash equivalents end of year 20,163,563
Noncash transactions
Donated capital assets 171,769
VRS Special Revenue Allocation 128,811
Unrealized gain/loss on investments 9,935
Capital assets acquired through the assumption of a liability 14,787,221
Retainage payable 16,942
The accompanying Notes to the Financial Statements are an integral part of this statement.
145
Virginia Community College System
J. Sargeant Reynolds Community College
Statement of Net Position
As of June 30, 2025
Component
Units
J. Sargeant
Reynolds
Community
College
Educational and
Community Real Estate
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 25,603,842 1,574,150
Appropriation available
Short term investments (Note 2) 713,345
Accounts receivable, net (Note 3) 454,620 3,857
Pledges receivable (Note 3) 788,180
Due from commonwealth (Note 4)
Due from system office
Interest receivable 4,261
Prepaid expenses 829,611 604,211
Inventories
Notes receivable, net (Note 3)
Total Current Assets 26,892,334 3,683,743
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 1,326,377
Prepaid expenses 43,059
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 17,623,217
Other long-term investments (Note 2) 3,692,305
Accounts receivable, net (Note 3) 55,475
Investments in real estate (Note 2)
Pledges receivable (Note 3) 935,046
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 1,299,705
Non-depreciable capital assets, net (Note 5) 3,944,737 105,999
Depreciable capital assets, net (Note 5) 66,969,869 12,139,383
Total Noncurrent Assets 73,639,222 34,495,950
Total Assets 100,531,556 38,179,693
Deferred Outflows of Resources (Note 8) 7,267,316
Total Assets and Deferred Outflows of Resources 107,798,872 38,179,693
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 2,584,277 456,130
Accrued payroll expense 3,319,086
Unearned revenue 2,289,680
Long-term liabilities-current portion (Note 9) 1,438,225 414,908
Securities lending obligation 52,641
Post employment benefit obligations (Note 9) 122,264
Due to system's office
Deposits 533,015
Total Current Liabilities 10,339,188 871,038
146
Virginia Community College System
J. Sargeant Reynolds Community College
Statement of Net Position
As of June 30, 2025
Component
Units
J. Sargeant
Reynolds
Community
College
Educational and
Community Real Estate
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 1,438,043 8,756,430
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 23,864,194
Total Noncurrent Liabilities 25,302,237 8,756,430
Total Liabilities 35,641,425 9,627,468
Deferred Inflows of Resources (Note 8) 6,161,887
Total Liabilities and Deferred Inflows of Resources 41,803,312 9,627,468
Net Position
Net investment in capital assets 70,397,969 3,643,297
Restricted for:
Nonexpendable 11,750,277
Expendable 2,896,015 9,784,489
Unrestricted (7,298,424) 3,374,162
Total Net Position 65,995,560 28,552,225
The accompanying Notes to the Financial Statements are an integral part of this statement.
147
Virginia Community College System
J. Sargeant Reynolds Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Units
J. Sargeant
Reynolds
Community
College
Educational and
Community Real Estate
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $11,942,219) 20,741,590
Federal grants and contracts 2,020,982
State and local grants 750
Nongovernmental grants 1,265,545
Sales/services of education department 19,973
Auxiliary enterprises (net of scholarship allowance of $38,153) 1,060,877
Gifts and contributions 2,762,999
Endowment income 2,203,579
Other operating revenues 532,206 252,989
Total Operating Revenue 25,641,923 5,219,567
Expenses
Operating Expenses
Instruction 31,635,172
Public service 1,523,576
Academic support 4,523,512 1,217,623
Student services 5,860,549
Institutional support 9,474,985 518,353
Operation and maintenance 8,786,859 120,000
Scholarships and fellowships 11,345,551 1,062,763
Auxiliary enterprises 744,229
Fundraising 30,372
Other expenses 1,667
Total Operating Expenses (Note 12) 73,894,433 2,950,778
Operating Income (Loss) (48,252,510) 2,268,789
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 32,964,519
Local appropriations 367,200
Grants and gifts 16,276,334
Investment income 461,461 16,901
Interest on capital asset related debt (26,262)
Other nonoperating revenue (expense) (64,995)
Net Nonoperating Revenue 49,978,257 16,901
Income before other revenues, expenses
gains (losses) 1,725,747 2,285,690
Capital appropriations-state (Note 20)
Capital appropriations-local 1,895,215
Capital gifts, grants and contracts 836
Additions to permanent and term endowments 193,027
Increase (Decrease) in Net Position 3,621,798 2,478,717
Net Position
Net Position beginning of year (Note 1-V) 62,373,762 26,073,508
Net Position end of year 65,995,560 28,552,225
The accompanying Notes to the Financial Statements are an integral part of this statement.
148
Virginia Community College System
J. Sargeant Reynolds Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 20,357,016
Grants and contracts 3,157,083
Payments to suppliers and others (13,830,175)
Payments for employee wages (33,590,260)
Payments for employee fringes and pension benefits (11,133,916)
Payment for scholarships (11,286,780)
Payments for utilities (1,658,287)
Sales and services of education department 19,973
Auxiliary 1,060,877
Custodial receipts 675,243
Custodial disbursements (561,743)
PLUS, Stafford and Direct Lending loan receipts 2,859,484
PLUS, Stafford and Direct Lending loan disbursements (2,745,767)
Loans issued to students
Loans collected from students
Other 552,553
Net cash used by operating activities (46,124,699)
Cash flows from non-capital financing activities:
State appropriations 32,964,519
Local appropriations 367,200
Grants and gifts 16,323,156
Borrowings
Loan repayments
Other non-operating revenue(expense) 349,656
Net cash provided (used) by non-capital financing activities 50,004,531
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local 1,895,215
Capital grants and gifts
Purchase capital assets (1,236,772)
Proceeds from sale of capital assets 1,169
Debt interest payments (13,323)
Debt principal payments (673,635)
Net cash provided (used) by capital financing activities (27,346)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 439,014
Net cash provided (used) by investing activities 439,014
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 4,291,500
Cash and cash equivalents, beginning of year 22,586,078
Cash and cash equivalents, End of Year 26,877,578
149
Virginia Community College System
J. Sargeant Reynolds Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (48,252,510)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 4,225,552
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 426,041
Prepaid expenses and other (238,594)
Post employment benefits asset (97,694)
Accrued compensation and leave 351,132
Accounts payable and other 905,288
Unearned revenue (885,922)
Deposits pending distribution
Custodial receipts(disbursements) 113,500
Stafford and Direct Loan receipts(disbursements) 113,717
Pension liability (1,470,202)
Post employment benefits liability (352,457)
Deferred inflows of resources related to pensions and post employment benefits (21,701)
Deferred outlflows of resources related to pensions and post employment benefits (940,849)
Net cash used in operating activities (46,124,699)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 26,930,219
Less: Securities Lending Cash Equivalents 52,641
Cash and cash equivalents end of year 26,877,578
Noncash transactions
Donated capital assets 836
VRS Special Revenue Allocation 135,226
Amortization of bond premium 8,912
Amortization of deferral on debt defeasance (4,100)
The accompanying Notes to the Financial Statements are an integral part of this statement.
150
Virginia Community College System
Brightpoint Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Brightpoint Brightpoint
Community Community
College College
Community Educational Real Estate
College Foundation Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 11,651,241 1,376,526 123,618
Appropriation available
Short term investments (Note 2) 4,523,619
Accounts receivable, net (Note 3) 2,092,052
Pledges receivable (Note 3) 894,821
Due from commonwealth (Note 4)
Due from system office 37,086
Interest receivable
Prepaid expenses 257,183
Inventories 5,384
Notes receivable, net (Note 3)
Total Current Assets 18,566,565 2,271,347 123,618
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 314,573
Appropriation available
Endowment investments (Note 2) 5,322,109
Other long-term investments (Note 2) 3,548,074
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 1,065,660
Non-depreciable capital assets, net (Note 5) 10,109,308
Depreciable capital assets, net (Note 5) 85,840,318
Total Noncurrent Assets 97,015,286 9,184,756
Total Assets 115,581,851 11,456,103 123,618
Deferred Outflows of Resources (Note 8) 5,764,478
Total Assets and Deferred Outflows of Resources 121,346,329 11,456,103 123,618
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 690,820 192,277
Accrued payroll expense 2,451,860
Unearned revenue 890,980
Long-term liabilities-current portion (Note 9) 1,457,676
Securities lending obligation 29
Post employment benefit obligations (Note 9) 102,790
Due to system's office
Deposits 2,177,084
Total Current Liabilities 7,771,239 192,277
151
Virginia Community College System
Brightpoint Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Brightpoint Brightpoint
Community Community
College College
Community Educational Real Estate
College Foundation Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 3,914,797
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 18,755,358
Total Noncurrent Liabilities 22,670,155
Total Liabilities 30,441,394 192,277
Deferred Inflows of Resources (Note 8) 3,290,961
Total Liabilities and Deferred Inflows of Resources 33,732,355 192,277
Net Position
Net investment in capital assets 92,560,926
Restricted for:
Nonexpendable 2,980,381
Expendable 3,187,497 5,889,802
Unrestricted (8,134,449) 2,393,643 123,618
Total Net Position 87,613,974 11,263,826 123,618
The accompanying Notes to the Financial Statements are an integral part of this statement.
152
Virginia Community College System
Brightpoint Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Unit
Brightpoint Brightpoint
Community Community
College College
Community Educational Real Estate
Revenues College Foundation Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $12,293,367) 7,612,328
Federal grants and contracts 1,687,043
State and local grants 3,823,552
Nongovernmental grants 225,478
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $39,344) 449,967
Gifts and contributions 488,851
Endowment income 887,481
Other operating revenues 514,510 634,138 5,000
Total Operating Revenue 14,312,878 2,010,470 5,000
Expenses
Operating Expenses
Instruction 23,180,680
Public service 1,119,753
Academic support 4,467,832 417,183
Student services 7,478,423
Institutional support 8,508,443 624,138 3,203
Operation and maintenance 8,554,908
Scholarships and fellowships 8,971,665 407,995
Auxiliary enterprises 295,778
Fundraising 165,014
Other expenses
Total Operating Expenses (Note 12) 62,577,482 1,614,330 3,203
Operating Income (Loss) (48,264,604) 396,140 1,797
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 35,696,374
Local appropriations 95,033
Grants and gifts 11,248,931
Investment income 5,932 614
Interest on capital asset related debt (32,953)
Other nonoperating revenue (expense) 464,158
Net Nonoperating Revenue 47,477,475 614
Income before other revenues, expenses
gains (losses) (787,129) 396,140 2,411
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 1,339,472
Additions to permanent and term endowments 26,450
Increase (Decrease) in Net Position 552,343 422,590 2,411
Net Position
Net Position beginning of year (Note 1-V) 87,061,631 10,841,236 121,207
Net Position end of year 87,613,974 11,263,826 123,618
The accompanying Notes to the Financial Statements are an integral part of this statement.
153
Virginia Community College System
Brightpoint Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 4,693,610
Grants and contracts 6,206,786
Payments to suppliers and others (9,216,583)
Payments for employee wages (30,478,219)
Payments for employee fringes and pension benefits (10,347,077)
Payment for scholarships (9,009,745)
Payments for utilities (927,444)
Sales and services of education department
Auxiliary 449,286
Custodial receipts 2,521
Custodial disbursements (9,931)
PLUS, Stafford and Direct Lending loan receipts 2,283,021
PLUS, Stafford and Direct Lending loan disbursements (2,067,919)
Loans issued to students
Loans collected from students
Other 514,510
Net cash used by operating activities (47,907,184)
Cash flows from non-capital financing activities:
State appropriations 35,696,374
Local appropriations 95,033
Grants and gifts 12,251,545
Borrowings
Loan repayments
Other non-operating revenue(expense) 527,425
Net cash provided (used) by non-capital financing activities 48,570,377
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 1,339,200
Purchase capital assets (1,382,110)
Proceeds from sale of capital assets 6,580
Debt interest payments (46,522)
Debt principal payments (400,000)
Net cash provided (used) by capital financing activities (482,852)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income (204,927)
Net cash provided (used) by investing activities (204,927)
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (24,586)
Cash and cash equivalents, beginning of year 11,675,798
Cash and cash equivalents, End of Year 11,651,212
154
Virginia Community College System
Brightpoint Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (48,264,604)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 3,650,163
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (308,167)
Prepaid expenses and other 67,858
Post employment benefits asset (103,337)
Accrued compensation and leave 346,582
Accounts payable and other (59,160)
Unearned revenue (1,676,370)
Deposits pending distribution (464,149)
Custodial receipts(disbursements) (7,410)
Stafford and Direct Loan receipts(disbursements) 215,102
Pension liability (501,272)
Post employment benefits liability (340,905)
Deferred inflows of resources related to pensions and post employment benefits 121,130
Deferred outlflows of resources related to pensions and post employment benefits (582,645)
Net cash used in operating activities (47,907,184)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 11,651,241
Less: Securities Lending Cash Equivalents 29
Cash and cash equivalents end of year 11,651,212
Noncash transactions
Donated capital assets 272
VRS Special Revenue Allocation 116,772
Retainage payable 30,531
The accompanying Notes to the Financial Statements are an integral part of this statement.
155
Virginia Community College System
Laurel Ridge Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Laurel Ridge
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 20,231,492 3,268,627
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 373,792
Pledges receivable (Note 3) 64,396
Due from commonwealth (Note 4) 773,875
Due from system office 23,127
Interest receivable
Prepaid expenses 163,835
Inventories 24,000
Notes receivable, net (Note 3) 215,000
Total Current Assets 21,590,121 3,548,023
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 313,482
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 14,611
Appropriation available
Endowment investments (Note 2) 10,431,557
Other long-term investments (Note 2) 4,438,856
Accounts receivable, net (Note 3) 95,869
Investments in real estate (Note 2)
Pledges receivable (Note 3) 33,490
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 837,914
Non-depreciable capital assets, net (Note 5) 2,201,318 4,011,150
Depreciable capital assets, net (Note 5) 66,892,684 14,914,431
Total Noncurrent Assets 70,341,267 33,844,095
Total Assets 91,931,388 37,392,118
Deferred Outflows of Resources (Note 8) 4,970,384
Total Assets and Deferred Outflows of Resources 96,901,772 37,392,118
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 630,254 202,527
Accrued payroll expense 2,323,210
Unearned revenue 1,014,000
Long-term liabilities-current portion (Note 9) 1,389,184 272,381
Securities lending obligation 50,352
Post employment benefit obligations (Note 9) 97,406
Due to system's office
Deposits 464,648
Total Current Liabilities 5,969,054 474,908
156
Virginia Community College System
Laurel Ridge Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Laurel Ridge
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue 217,500
Account payable for noncurrent assets
Long-term liabilities (Note 9) 5,611,379 8,917,052
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 15,148,166
Total Noncurrent Liabilities 20,759,545 9,134,552
Total Liabilities 26,728,599 9,609,460
Deferred Inflows of Resources (Note 8) 2,940,862
Total Liabilities and Deferred Inflows of Resources 29,669,461 9,609,460
Net Position
Net investment in capital assets 63,739,678 9,736,148
Restricted for:
Nonexpendable 10,446,168
Expendable 3,303,693 3,166,955
Unrestricted 188,940 4,433,387
Total Net Position 67,232,311 27,782,658
The accompanying Notes to the Financial Statements are an integral part of this statement.
157
Virginia Community College System
Laurel Ridge Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Laurel Ridge
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,241,697) 14,344,282
Federal grants and contracts 1,410,430
State and local grants 4,460,571
Nongovernmental grants 155,057
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $16,814) 417,344
Gifts and contributions 1,299,337
Endowment income 926,607
Other operating revenues 174,277 2,008,717
Total Operating Revenue 20,961,961 4,234,661
Expenses
Operating Expenses
Instruction 21,070,254
Public service 622,798
Academic support 3,604,957
Student services 4,563,804
Institutional support 9,159,792 1,758,525
Operation and maintenance 4,437,676
Scholarships and fellowships 7,783,393 460,076
Auxiliary enterprises 89,632
Fundraising 162,820
Other expenses 521,624
Total Operating Expenses (Note 12) 51,332,306 2,903,045
Operating Income (Loss) (30,370,345) 1,331,616
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 24,133,508
Local appropriations 335,461
Grants and gifts 7,346,074
Investment income 82,805 199,606
Interest on capital asset related debt (196,131)
Other nonoperating revenue (expense) (1,952,113)
Net Nonoperating Revenue 29,749,604 199,606
Income before other revenues, expenses
gains (losses) (620,741) 1,531,222
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 399,884
Additions to permanent and term endowments
Increase (Decrease) in Net Position (220,857) 1,531,222
Net Position
Net Position beginning of year (Note 1-V) 67,453,168 26,251,436
Net Position end of year 67,232,311 27,782,658
The accompanying Notes to the Financial Statements are an integral part of this statement.
158
Virginia Community College System
Laurel Ridge Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 14,296,515
Grants and contracts 6,035,308
Payments to suppliers and others (8,462,519)
Payments for employee wages (23,593,503)
Payments for employee fringes and pension benefits (8,378,284)
Payment for scholarships (7,810,749)
Payments for utilities (962,953)
Sales and services of education department
Auxiliary 417,344
Custodial receipts 544,218
Custodial disbursements (637,140)
PLUS, Stafford and Direct Lending loan receipts 929,398
PLUS, Stafford and Direct Lending loan disbursements (936,549)
Loans issued to students
Loans collected from students
Other 188,211
Net cash used by operating activities (28,370,703)
Cash flows from non-capital financing activities:
State appropriations 24,133,508
Local appropriations 335,461
Grants and gifts 7,658,111
Borrowings
Loan repayments
Other non-operating revenue(expense) (1,252,607)
Net cash provided (used) by non-capital financing activities 30,874,473
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 398,236
Purchase capital assets (949,187)
Proceeds from sale of capital assets 24,809
Debt interest payments (337,317)
Debt principal payments (333,869)
Net cash provided (used) by capital financing activities (1,197,328)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 80,942
Net cash provided (used) by investing activities 80,942
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 1,387,384
Cash and cash equivalents, beginning of year 19,107,238
Cash and cash equivalents, End of Year 20,494,622
159
Virginia Community College System
Laurel Ridge Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (30,370,345)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 3,040,040
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 129,121
Prepaid expenses and other 324,806
Post employment benefits asset (86,060)
Accrued compensation and leave 186,057
Accounts payable and other (87,109)
Unearned revenue (232,873)
Deposits pending distribution
Custodial receipts(disbursements) (92,922)
Stafford and Direct Loan receipts(disbursements) (7,151)
Pension liability (204,482)
Post employment benefits liability (94,511)
Deferred inflows of resources related to pensions and post employment benefits (74,953)
Deferred outlflows of resources related to pensions and post employment benefits (800,321)
Net cash used in operating activities (28,370,703)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 20,544,974
Less: Securities Lending Cash Equivalents 50,352
Cash and cash equivalents end of year 20,494,622
Noncash transactions
Donated capital assets 1,648
VRS Special Revenue Allocation 91,048
Capital assets acquired through the assumption of a liability 4,599,784
The accompanying Notes to the Financial Statements are an integral part of this statement.
160
Virginia Community College System
Mountain Empire Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Mountain
Empire
Community
Community College
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 6,979,008 311,311
Appropriation available
Short term investments (Note 2) 750,000
Accounts receivable, net (Note 3) 743,446 8,279
Pledges receivable (Note 3)
Due from commonwealth (Note 4) 84,060
Due from system office 680,556
Interest receivable
Prepaid expenses 15,399
Inventories 418,460
Notes receivable, net (Note 3)
Total Current Assets 9,655,530 334,989
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 87,093
Appropriation available
Endowment investments (Note 2) 36,382,250
Other long-term investments (Note 2) 2,939,845
Accounts receivable, net (Note 3) 600,145
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 425,450
Non-depreciable capital assets, net (Note 5) 3,716,937 35,500
Depreciable capital assets, net (Note 5) 15,377,555
Total Noncurrent Assets 19,519,942 40,044,833
Total Assets 29,175,472 40,379,822
Deferred Outflows of Resources (Note 8) 2,773,794
Total Assets and Deferred Outflows of Resources 31,949,266 40,379,822
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 907,071 381,887
Accrued payroll expense 1,529,541
Unearned revenue 5,000
Long-term liabilities-current portion (Note 9) 499,662
Securities lending obligation 1,054
Post employment benefit obligations (Note 9) 54,724
Due to system's office
Deposits 477,152
Total Current Liabilities 3,474,204 381,887
161
Virginia Community College System
Mountain Empire Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Mountain
Empire
Community
Community College
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 483,374 599,381
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 8,808,439
Total Noncurrent Liabilities 9,291,813 599,381
Total Liabilities 12,766,017 981,268
Deferred Inflows of Resources (Note 8) 1,792,545
Total Liabilities and Deferred Inflows of Resources 14,558,562 981,268
Net Position
Net investment in capital assets 19,055,263
Restricted for:
Nonexpendable 13,088,106
Expendable 3,279,648 17,936,603
Unrestricted (4,944,207) 8,373,845
Total Net Position 17,390,704 39,398,554
The accompanying Notes to the Financial Statements are an integral part of this statement.
162
Virginia Community College System
Mountain Empire Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Mountain
Empire
Community
Community College
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $3,526,922) 2,981,024
Federal grants and contracts 2,236,713
State and local grants 1,195,622 238,113
Nongovernmental grants 252,004 481,809
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $11,259) 236,540
Gifts and contributions 95,160
Endowment income 3,881,506
Other operating revenues 100,553 194,171
Total Operating Revenue 7,002,456 4,890,759
Expenses
Operating Expenses
Instruction 10,818,249
Public service 407,163
Academic support 2,731,988 1,241,721
Student services 1,748,508
Institutional support 2,849,637 396,632
Operation and maintenance 2,382,782
Scholarships and fellowships 5,057,786 101,103
Auxiliary enterprises 137,887
Fundraising 94,415
Other expenses
Total Operating Expenses (Note 12) 26,134,000 1,833,871
Operating Income (Loss) (19,131,544) 3,056,888
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 14,301,307
Local appropriations 114,303
Grants and gifts 6,296,534
Investment income 33,475 519,637
Interest on capital asset related debt (2,591)
Other nonoperating revenue (expense) 2,360,479
Net Nonoperating Revenue 23,103,507 519,637
Income before other revenues, expenses
gains (losses) 3,971,963 3,576,525
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 310,695
Additions to permanent and term endowments 379,346
Increase (Decrease) in Net Position 4,282,658 3,955,871
Net Position
Net Position beginning of year (Note 1-V) 13,108,046 35,442,683
Net Position end of year 17,390,704 39,398,554
The accompanying Notes to the Financial Statements are an integral part of this statement.
163
Virginia Community College System
Mountain Empire Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 2,788,738
Grants and contracts 3,400,031
Payments to suppliers and others (5,680,762)
Payments for employee wages (11,184,278)
Payments for employee fringes and pension benefits (4,457,508)
Payment for scholarships (4,003,157)
Payments for utilities (569,474)
Sales and services of education department
Auxiliary 345,499
Custodial receipts 647,472
Custodial disbursements (328,238)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 100,553
Net cash used by operating activities (18,941,124)
Cash flows from non-capital financing activities:
State appropriations 14,301,307
Local appropriations 114,303
Grants and gifts 6,292,968
Borrowings
Loan repayments
Other non-operating revenue(expense) 1,869,417
Net cash provided (used) by non-capital financing activities 22,577,995
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 310,695
Purchase capital assets (2,070,302)
Proceeds from sale of capital assets 17,519
Debt interest payments (1,772)
Debt principal payments (41,276)
Net cash provided (used) by capital financing activities (1,785,136)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 33,392
Net cash provided (used) by investing activities 33,392
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 1,885,127
Cash and cash equivalents, beginning of year 5,092,827
Cash and cash equivalents, End of Year 6,977,954
164
Virginia Community College System
Mountain Empire Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (19,131,544)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,159,889
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (247,599)
Prepaid expenses and other
Post employment benefits asset (35,815)
Accrued compensation and leave (101,751)
Accounts payable and other (150,802)
Unearned revenue (153,422)
Deposits pending distribution 32,924
Custodial receipts(disbursements) 319,234
Stafford and Direct Loan receipts(disbursements)
Pension liability (488,191)
Post employment benefits liability (155,783)
Deferred inflows of resources related to pensions and post employment benefits 244,014
Deferred outlflows of resources related to pensions and post employment benefits (232,278)
Net cash used in operating activities (18,941,124)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 6,979,008
Less: Securities Lending Cash Equivalents 1,054
Cash and cash equivalents end of year 6,977,954
Noncash transactions
VRS Special Revenue Allocation 49,072
Retainage payable 118,072
The accompanying Notes to the Financial Statements are an integral part of this statement.
165
Virginia Community College System
New River Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
New River
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 16,810,249 364,557
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 147,326
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from system office 27,050
Interest receivable
Prepaid expenses 1,025,689
Inventories 11,121
Notes receivable, net (Note 3) 50,694
Total Current Assets 18,021,435 415,251
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 2,139,045
Appropriation available
Endowment investments (Note 2) 25,708,609
Other long-term investments (Note 2) 4,918,581
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 450,964
Non-depreciable capital assets, net (Note 5) 822,066
Depreciable capital assets, net (Note 5) 16,015,098 48,657
Total Noncurrent Assets 17,288,128 32,814,892
Total Assets 35,309,563 33,230,143
Deferred Outflows of Resources (Note 8) 2,706,638
Total Assets and Deferred Outflows of Resources 38,016,201 33,230,143
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,468,201 1,256
Accrued payroll expense 985,358
Unearned revenue 973,668
Long-term liabilities-current portion (Note 9) 651,782
Securities lending obligation 88
Post employment benefit obligations (Note 9) 47,989
Due to system's office
Deposits 17,867
Total Current Liabilities 4,144,953 1,256
166
Virginia Community College System
New River Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
New River
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 2,763,356
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 8,898,092
Total Noncurrent Liabilities 11,661,448
Total Liabilities 15,806,401 1,256
Deferred Inflows of Resources (Note 8) 1,944,385
Total Liabilities and Deferred Inflows of Resources 17,750,786 1,256
Net Position
Net investment in capital assets 14,388,849 48,657
Restricted for:
Nonexpendable 15,389,434
Expendable 2,962,313 3,630,963
Unrestricted 2,914,253 14,159,833
Total Net Position 20,265,415 33,228,887
The accompanying Notes to the Financial Statements are an integral part of this statement.
167
Virginia Community College System
New River Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
New River
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,539,187) 8,294,930
Federal grants and contracts 577,387
State and local grants 424,440
Nongovernmental grants 51,842
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $17,712) 118,196
Gifts and contributions 1,114,911
Endowment income 3,518,513
Other operating revenues 63,815 264,070
Total Operating Revenue 9,530,610 4,897,494
Expenses
Operating Expenses
Instruction 15,760,475
Public service 95,438
Academic support 3,241,986
Student services 1,817,182
Institutional support 4,977,153 113,642
Operation and maintenance 4,770,753
Scholarships and fellowships 3,644,861 1,770,989
Auxiliary enterprises 36,576
Fundraising 66,300
Other expenses
Total Operating Expenses (Note 12) 34,344,424 1,950,931
Operating Income (Loss) (24,813,814) 2,946,563
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 20,361,043
Local appropriations 95,083
Grants and gifts 5,462,723
Investment income 369,535 (304,380)
Interest on capital asset related debt (222,353)
Other nonoperating revenue (expense) (166,138)
Net Nonoperating Revenue 25,899,893 (304,380)
Income before other revenues, expenses
gains (losses) 1,086,079 2,642,183
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 533,357
Additions to permanent and term endowments 1,834,312
Increase (Decrease) in Net Position 1,619,436 4,476,495
Net Position
Net Position beginning of year (Note 1-V) 18,645,979 28,752,392
Net Position end of year 20,265,415 33,228,887
The accompanying Notes to the Financial Statements are an integral part of this statement.
168
Virginia Community College System
New River Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 8,018,535
Grants and contracts 1,053,669
Payments to suppliers and others (5,717,691)
Payments for employee wages (17,367,423)
Payments for employee fringes and pension benefits (4,769,949)
Payment for scholarships (3,661,122)
Payments for utilities (844,456)
Sales and services of education department
Auxiliary 118,196
Custodial receipts 3,888
Custodial disbursements (81,863)
PLUS, Stafford and Direct Lending loan receipts 823,493
PLUS, Stafford and Direct Lending loan disbursements (823,493)
Loans issued to students
Loans collected from students
Other 63,815
Net cash used by operating activities (23,184,401)
Cash flows from non-capital financing activities:
State appropriations 20,361,043
Local appropriations 95,083
Grants and gifts 5,952,805
Borrowings
Loan repayments
Other non-operating revenue(expense) (187,318)
Net cash provided (used) by non-capital financing activities 26,221,613
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 532,982
Purchase capital assets (2,126,392)
Proceeds from sale of capital assets
Debt interest payments (404,357)
Debt principal payments (554,024)
Net cash provided (used) by capital financing activities (2,551,791)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 369,531
Net cash provided (used) by investing activities 369,531
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 854,952
Cash and cash equivalents, beginning of year 15,955,209
Cash and cash equivalents, End of Year 16,810,161
169
Virginia Community College System
New River Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (24,813,814)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 2,272,074
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (73,613)
Prepaid expenses and other 331,141
Post employment benefits asset (33,152)
Accrued compensation and leave 114,003
Accounts payable and other 60,532
Unearned revenue (258,881)
Deposits pending distribution 39,191
Custodial receipts(disbursements) (77,975)
Stafford and Direct Loan receipts(disbursements)
Pension liability (575,757)
Post employment benefits liability (193,981)
Deferred inflows of resources related to pensions and post employment benefits 206,173
Deferred outlflows of resources related to pensions and post employment benefits (180,342)
Net cash used in operating activities (23,184,401)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 16,810,249
Less: Securities Lending Cash Equivalents 88
Cash and cash equivalents end of year 16,810,161
Noncash transactions
Donated capital assets 375
VRS Special Revenue Allocation 52,562
Capital assets acquired through the assumption of a liability 2,617,512
The accompanying Notes to the Financial Statements are an integral part of this statement.
170
Virginia Community College System
Northern Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Northern
Virginia
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 148,325,043 862,975
Appropriation available
Short term investments (Note 2) 9,101,025 2,661,526
Accounts receivable, net (Note 3) 1,938,334
Pledges receivable (Note 3) 140,000
Due from commonwealth (Note 4) 2,934,503
Due from system office 1,462,246
Interest receivable 16,660
Prepaid expenses 16,936,192
Inventories
Notes receivable, net (Note 3) 451,679
Total Current Assets 181,165,682 3,664,501
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) (104,534)
Prepaid expenses 103,804
Endowment cash and cash equivalents (Note 2)
Appropriation available 12,733,277
Endowment investments (Note 2) 15,082,867
Other long-term investments (Note 2) 28,439,680 18,873,164
Accounts receivable, net (Note 3) 195,298
Investments in real estate (Note 2)
Pledges receivable (Note 3) 397,362
Due from commonwealth (Note 4) 2,165,376
Notes receivable, net (Note 3) 25,152
Post employment benefit assets (Note 18) 6,488,194
Non-depreciable capital assets, net (Note 5) 103,138,850
Depreciable capital assets, net (Note 5) 338,578,597
Total Noncurrent Assets 491,763,694 34,353,393
Total Assets 672,929,376 38,017,894
Deferred Outflows of Resources (Note 8) 35,523,710
Total Assets and Deferred Outflows of Resources 708,453,086 38,017,894
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 20,360,731 240,919
Accrued payroll expense 18,990,252 15,274
Unearned revenue 28,043,974
Long-term liabilities-current portion (Note 9) 9,677,373
Securities lending obligation 1,939
Post employment benefit obligations (Note 9) 521,816
Due to system's office
Deposits (1,046,554)
Total Current Liabilities 76,549,531 256,193
171
Northern Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Northern
Virginia
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue 927,142
Long-term liabilities (Note 9) 16,295,355
Due to federal government (Note 9) 855,387
Pension and post employment benefit obligations (Note 9) 117,776,233
Total Noncurrent Liabilities 135,854,117
Total Liabilities 212,403,648 256,193
Deferred Inflows of Resources (Note 8) 25,938,301
Total Liabilities and Deferred Inflows of Resources 238,341,949 256,193
Net Position
Net investment in capital assets 427,637,128
Restricted for:
Nonexpendable 113,626 9,620,023
Expendable 58,675,635 11,083,055
Unrestricted (16,315,252) 17,058,623
Total Net Position 470,111,137 37,761,701
The accompanying Notes to the Financial Statements are an integral part of this statement.
172
Virginia Community College System
Northern Virginia Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Northern
Virginia
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $74,883,014) 115,185,792
Federal grants and contracts 15,124,923
State and local grants 2,500,494
Nongovernmental grants 5,679,906
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $239,415) 5,240,783
Gifts and contributions 2,249,899
Endowment income 1,544,517
Other operating revenues 8,417,301 998,384
Total Operating Revenue 152,149,199 4,792,800
Expenses
Operating Expenses
Instruction 153,141,041
Public service 1,818,927
Academic support 32,200,584 6,796,632
Student services 34,756,693
Institutional support 60,270,918 223,925
Operation and maintenance 71,013,478
Scholarships and fellowships 48,534,908 505,750
Auxiliary enterprises 7,184,900
Fundraising 100,144
Other expenses 12,849
Total Operating Expenses (Note 12) 408,934,298 7,626,451
Operating Income (Loss) (256,785,099) (2,833,651)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 236,984,977
Local appropriations 250,000
Grants and gifts 72,929,565
Investment income 4,119,128 1,864,476
Interest on capital asset related debt (506,350)
Other nonoperating revenue (expense) (22,495,150)
Net Nonoperating Revenue 291,282,170 1,864,476
Income before other revenues, expenses
gains (losses) 34,497,071 (969,175)
Capital appropriations-state (Note 20) 19,585,862
Capital appropriations-local
Capital gifts, grants and contracts 6,257,924
Additions to permanent and term endowments 279,789
Increase (Decrease) in Net Position 60,340,857 (689,386)
Net Position
Net Position beginning of year (Note 1-V) 409,770,280 38,451,087
Net Position end of year 470,111,137 37,761,701
The accompanying Notes to the Financial Statements are an integral part of this statement.
173
Virginia Community College System
Northern Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 123,404,355
Grants and contracts 22,828,101
Payments to suppliers and others (115,140,151)
Payments for employee wages (177,942,988)
Payments for employee fringes and pension benefits (57,517,911)
Payment for scholarships (62,182,284)
Payments for utilities (4,029,175)
Sales and services of education department
Auxiliary 5,240,783
Custodial receipts 2,852,895
Custodial disbursements (2,844,001)
PLUS, Stafford and Direct Lending loan receipts 23,967,907
PLUS, Stafford and Direct Lending loan disbursements (25,628,575)
Loans issued to students 159,029
Loans collected from students 173,009
Other 8,278,197
Net cash used by operating activities (258,380,809)
Cash flows from non-capital financing activities:
State appropriations 236,984,977
Local appropriations 250,000
Grants and gifts 70,497,165
Borrowings
Loan repayments
Other non-operating revenue(expense) (23,874,918)
Net cash provided (used) by non-capital financing activities 283,857,224
Cash flows from capital and related financing activities:
Capital appropriations-state 12,898,238
Capital appropriations-local
Capital grants and gifts 6,204,368
Purchase capital assets (42,115,097)
Proceeds from sale of capital assets 251,023
Debt interest payments (364,622)
Debt principal payments (3,501,156)
Net cash provided (used) by capital financing activities (26,627,246)
Cash flows from investing activities:
Purchases of investments (6,190,366)
Sale of investments 7,041,748
Investment income 2,880,354
Net cash provided (used) by investing activities 3,731,736
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 2,580,905
Cash and cash equivalents, beginning of year 145,637,665
Cash and cash equivalents, End of Year 148,218,570
174
Virginia Community College System
Northern Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (256,785,099)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 20,302,569
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 2,012,511
Prepaid expenses and other (12,465,595)
Post employment benefits asset (466,039)
Accrued compensation and leave 812,363
Accounts payable and other (3,222,274)
Unearned revenue 5,531,613
Deposits pending distribution
Custodial receipts(disbursements) 8,894
Stafford and Direct Loan receipts(disbursements) (1,660,668)
Pension liability (5,928,090)
Post employment benefits liability (2,698,714)
Deferred inflows of resources related to pensions and post employment benefits 596,293
Deferred outlflows of resources related to pensions and post employment benefits (4,418,573)
Net cash used in operating activities (258,380,809)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 148,220,509
Less: Securities Lending Cash Equivalents 1,939
Cash and cash equivalents end of year 148,218,570
Noncash transactions
Donated capital assets 53,556
VRS Special Revenue Allocation 760,779
Unrealized gain/loss on investments 1,125,212
Retainage payable 2,954,509
The accompanying Notes to the Financial Statements are an integral part of this statement.
175
Virginia Community College System
Patrick & Henry Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Patrick & Henry
Community
Community College
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 3,646,939 894,026
Appropriation available
Short term investments (Note 2) 1,080,719 573,000
Accounts receivable, net (Note 3) 1,422,775
Pledges receivable (Note 3)
Due from commonwealth (Note 4) 149,195
Due from system office 57,513
Interest receivable
Prepaid expenses
Inventories 6,500
Notes receivable, net (Note 3) 4,091
Total Current Assets 6,367,732 1,467,026
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 93,190
Appropriation available
Endowment investments (Note 2) 11,386,408
Other long-term investments (Note 2) 10,873,192
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 761,090
Non-depreciable capital assets, net (Note 5) 917,926 111,906
Depreciable capital assets, net (Note 5) 25,772,716 638,221
Total Noncurrent Assets 27,451,732 23,102,917
Total Assets 33,819,464 24,569,943
Deferred Outflows of Resources (Note 8) 4,106,330
Total Assets and Deferred Outflows of Resources 37,925,794 24,569,943
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 689,602 2,181
Accrued payroll expense 1,209,973
Unearned revenue 299,955 225,885
Long-term liabilities-current portion (Note 9) 602,577
Securities lending obligation 12
Post employment benefit obligations (Note 9) 72,091
Due to system's office
Deposits 102,849
Total Current Liabilities 2,977,059 228,066
176
Virginia Community College System
Patrick & Henry Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Patrick & Henry
Community
Community College
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 595,314
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 13,178,308
Total Noncurrent Liabilities 13,773,622
Total Liabilities 16,750,681 228,066
Deferred Inflows of Resources (Note 8) 2,355,480
Total Liabilities and Deferred Inflows of Resources 19,106,161 228,066
Net Position
Net investment in capital assets 26,651,730 750,127
Restricted for:
Nonexpendable 7,544,211
Expendable 1,104,811 4,339,805
Unrestricted (8,936,908) 11,707,734
Total Net Position 18,819,633 24,341,877
The accompanying Notes to the Financial Statements are an integral part of this statement.
177
Virginia Community College System
Patrick & Henry Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Patrick Henry
Community
Community College
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,556,843) 2,714,981
Federal grants and contracts 3,333,159
State and local grants 1,702,002
Nongovernmental grants 416,531 747,194
Sales/services of education department 4,766
Auxiliary enterprises (net of scholarship allowance of $17,773) 259,692
Gifts and contributions 1,008,459
Endowment income 2,711,558
Other operating revenues 182,442 164,726
Total Operating Revenue 8,613,573 4,631,937
Expenses
Operating Expenses
Instruction 8,752,099 64,464
Public service 3,494,708 4,580
Academic support 2,564,125 855,248
Student services 3,377,974 16,866
Institutional support 3,437,507 125,561
Operation and maintenance 1,998,530 107,102
Scholarships and fellowships 3,060,976 979,117
Auxiliary enterprises 249,391 495,501
Fundraising 27,026
Other expenses 143,444
Total Operating Expenses (Note 12) 26,935,310 2,818,909
Operating Income (Loss) (18,321,737) 1,813,028
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 13,961,886
Local appropriations 74,249
Grants and gifts 4,509,340
Investment income 132,074 20,521
Interest on capital asset related debt (1,931)
Other nonoperating revenue (expense) (2,446)
Net Nonoperating Revenue 18,673,172 20,521
Income before other revenues, expenses
gains (losses) 351,435 1,833,549
Capital appropriations-state (Note 20) 11,947
Capital appropriations-local
Capital gifts, grants and contracts 516,541
Additions to permanent and term endowments 31,343
Increase (Decrease) in Net Position 879,923 1,864,892
Net Position
Net Position beginning of year (Note 1-V) 17,939,710 22,476,985
Net Position end of year 18,819,633 24,341,877
The accompanying Notes to the Financial Statements are an integral part of this statement.
178
Virginia Community College System
Patrick & Henry Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 2,562,225
Grants and contracts 5,523,202
Payments to suppliers and others (4,417,152)
Payments for employee wages (13,115,577)
Payments for employee fringes and pension benefits (5,232,950)
Payment for scholarships (3,033,172)
Payments for utilities (544,114)
Sales and services of education department 4,766
Auxiliary 262,364
Custodial receipts 214,902
Custodial disbursements (115,533)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students 1,067
Other 177,267
Net cash used by operating activities (17,712,705)
Cash flows from non-capital financing activities:
State appropriations 13,961,886
Local appropriations 74,249
Grants and gifts 4,484,174
Borrowings
Loan repayments
Other non-operating revenue(expense) (65,229)
Net cash provided (used) by non-capital financing activities 18,455,080
Cash flows from capital and related financing activities:
Capital appropriations-state 114,015
Capital appropriations-local
Capital grants and gifts 358,133
Purchase capital assets (700,724)
Proceeds from sale of capital assets 5,270
Debt interest payments (728)
Debt principal payments (37,669)
Net cash provided (used) by capital financing activities (261,703)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 74
Net cash provided (used) by investing activities 74
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 480,746
Cash and cash equivalents, beginning of year 3,166,181
Cash and cash equivalents, End of Year 3,646,927
179
Virginia Community College System
Patrick & Henry Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (18,321,737)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,459,320
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 11,984
Prepaid expenses and other
Post employment benefits asset (82,205)
Accrued compensation and leave (6,676)
Accounts payable and other 106,719
Unearned revenue (94,666)
Deposits pending distribution
Custodial receipts(disbursements) 99,369
Stafford and Direct Loan receipts(disbursements)
Pension liability (203,294)
Post employment benefits liability (172,555)
Deferred inflows of resources related to pensions and post employment benefits (71,561)
Deferred outlflows of resources related to pensions and post employment benefits (437,403)
Net cash used in operating activities (17,712,705)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 3,646,939
Less: Securities Lending Cash Equivalents 12
Cash and cash equivalents end of year 3,646,927
Noncash transactions
Donated capital assets 158,408
VRS Special Revenue Allocation 75,256
Unrealized gain/loss on investments 132,000
The accompanying Notes to the Financial Statements are an integral part of this statement.
180
Virginia Community College System
Paul D. Camp Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Paul D. Camp
Paul D. Camp Community
Community College Real
Community College Estate
College Foundation Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 5,268,157 290,330 2,879,272
Appropriation available
Short term investments (Note 2) 911,020
Accounts receivable, net (Note 3) 944,165 2,325 24,564
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from system office 87,241
Interest receivable
Prepaid expenses 52,104
Inventories 13,500
Notes receivable, net (Note 3)
Total Current Assets 6,365,167 1,203,675 2,903,836
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) (2,016)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 17,606
Appropriation available 750,000
Endowment investments (Note 2) 772,932
Other long-term investments (Note 2)
Accounts receivable, net (Note 3) 38,263
Investments in real estate (Note 2)
Pledges receivable (Note 3) 4,650
Due from commonwealth (Note 4) 81,202
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 247,528
Non-depreciable capital assets, net (Note 5) 594,274 2,500 1,463,939
Depreciable capital assets, net (Note 5) 7,242,640 1,916 3,197,134
Total Noncurrent Assets 8,931,234 781,998 4,699,336
Total Assets 15,296,401 1,985,673 7,603,172
Deferred Outflows of Resources (Note 8) 1,266,280
Total Assets and Deferred Outflows of Resources 16,562,681 1,985,673 7,603,172
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 511,929 90
Accrued payroll expense 424,051
Unearned revenue 422,056 6,350 48,509
Long-term liabilities-current portion (Note 9) 262,513
Securities lending obligation 246
Post employment benefit obligations (Note 9) 21,456
Due to system's office
Deposits 1,536,867
Total Current Liabilities 3,179,118 6,350 48,599
181
Virginia Community College System
Paul D. Camp Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Paul D. Camp
Paul D. Camp Community
Community College Real
Community College Estate
College Foundation Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 187,544
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 4,286,407
Total Noncurrent Liabilities 4,473,951
Total Liabilities 7,653,069 6,350 48,599
Deferred Inflows of Resources (Note 8) 848,522
Total Liabilities and Deferred Inflows of Resources 8,501,591 6,350 48,599
Net Position
Net investment in capital assets 7,813,411 4,416 4,661,073
Restricted for:
Nonexpendable 315,565
Expendable 2,385,055 1,527,060 2,049,830
Unrestricted (2,137,376) 132,282 843,670
Total Net Position 8,061,090 1,979,323 7,554,573
The accompanying Notes to the Financial Statements are an integral part of this statement.
182
Virginia Community College System
Paul D. Camp Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Unit
Paul D. Camp
Paul D. Camp Community
Community College Real
Community College Estate
Revenues College Foundation Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $3,530,775) 2,221,593
Federal grants and contracts 1,364,530
State and local grants 2,700,347
Nongovernmental grants 361,651 252,000 478,500
Sales/services of education department 2,276
Auxiliary enterprises (net of scholarship allowance of $11,290) 17,622
Gifts and contributions 220,078
Endowment income 76,747
Other operating revenues 148,426 174,513 582,605
Total Operating Revenue 6,816,445 723,338 1,061,105
Expenses
Operating Expenses
Instruction 7,029,258
Public service 117,090 43,628
Academic support 1,456,446 124,498 28,006
Student services 2,522,760
Institutional support 2,880,785 320,744 191,152
Operation and maintenance 3,557,296
Scholarships and fellowships 1,598,503 199,311
Auxiliary enterprises 10,218
Fundraising 6,650
Other expenses
Total Operating Expenses (Note 12) 19,172,356 694,831 219,158
Operating Income (Loss) (12,355,911) 28,507 841,947
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 8,880,532
Local appropriations 92,348
Grants and gifts 1,711,444
Investment income 10,003 93,198 134,311
Interest on capital asset related debt (696)
Other nonoperating revenue (expense) 300,700
Net Nonoperating Revenue 10,994,331 93,198 134,311
Income before other revenues, expenses
gains (losses) (1,361,580) 121,705 976,258
Capital appropriations-state (Note 20) 2,209,663
Capital appropriations-local
Capital gifts, grants and contracts 15,804
Additions to permanent and term endowments
Increase (Decrease) in Net Position 863,887 121,705 976,258
Net Position
Net Position beginning of year (Note 1-V) 7,197,203 1,857,618 6,578,315
Net Position end of year 8,061,090 1,979,323 7,554,573
The accompanying Notes to the Financial Statements are an integral part of this statement.
183
Virginia Community College System
Paul D. Camp Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 1,667,780
Grants and contracts 4,466,886
Payments to suppliers and others (8,095,288)
Payments for employee wages (6,537,213)
Payments for employee fringes and pension benefits (2,140,954)
Payment for scholarships (1,603,783)
Payments for utilities (377,964)
Sales and services of education department 2,276
Auxiliary 17,622
Custodial receipts 16,514
Custodial disbursements (9,876)
PLUS, Stafford and Direct Lending loan receipts 437,529
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 148,426
Net cash used by operating activities (12,008,045)
Cash flows from non-capital financing activities:
State appropriations 8,880,532
Local appropriations 92,348
Grants and gifts 1,711,444
Borrowings
Loan repayments
Other non-operating revenue(expense) 295,488
Net cash provided (used) by non-capital financing activities 10,979,812
Cash flows from capital and related financing activities:
Capital appropriations-state 1,658,131
Capital appropriations-local
Capital grants and gifts 15,804
Purchase capital assets (150,632)
Proceeds from sale of capital assets 1,825
Debt interest payments (531)
Debt principal payments (7,493)
Net cash provided (used) by capital financing activities 1,517,104
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 9,947
Net cash provided (used) by investing activities 9,947
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 498,818
Cash and cash equivalents, beginning of year 4,784,683
Cash and cash equivalents, End of Year 5,283,501
184
Virginia Community College System
Paul D. Camp Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (12,355,911)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 688,282
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (384,079)
Prepaid expenses and other (9,888)
Post employment benefits asset (25,876)
Accrued compensation and leave 19,484
Accounts payable and other 57,135
Unearned revenue 120,369
Deposits pending distribution (240,796)
Custodial receipts(disbursements) 6,638
Stafford and Direct Loan receipts(disbursements) 437,529
Pension liability (88,234)
Post employment benefits liability (54,610)
Deferred inflows of resources related to pensions and post employment benefits (49,242)
Deferred outlflows of resources related to pensions and post employment benefits (128,846)
Net cash used in operating activities (12,008,045)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 5,283,747
Less: Securities Lending Cash Equivalents 246
Cash and cash equivalents end of year 5,283,501
Noncash transactions
VRS Special Revenue Allocation 24,636
Retainage payable 166,449
The accompanying Notes to the Financial Statements are an integral part of this statement.
185
Virginia Community College System
Piedmont Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Piedmont
Virginia
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 7,963,844 5,550,492
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 2,680,287 200
Pledges receivable (Note 3) 637,206
Due from commonwealth (Note 4) 44,771
Due from system office 232,073
Interest receivable
Prepaid expenses 7,876
Inventories 8,000
Notes receivable, net (Note 3)
Total Current Assets 10,936,851 6,187,898
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) (65,399)
Prepaid expenses
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 18,135,763
Other long-term investments (Note 2) 7,231,377
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 76,021
Due from commonwealth (Note 4) 154,151
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 661,265
Non-depreciable capital assets, net (Note 5) 3,076,933
Depreciable capital assets, net (Note 5) 47,677,459
Total Noncurrent Assets 51,504,409 25,443,161
Total Assets 62,441,260 31,631,059
Deferred Outflows of Resources (Note 8) 3,764,370
Total Assets and Deferred Outflows of Resources 66,205,630 31,631,059
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,346,758 40,477
Accrued payroll expense 2,509,103 138,249
Unearned revenue 1,102,312
Long-term liabilities-current portion (Note 9) 1,056,846
Securities lending obligation 10,683
Post employment benefit obligations (Note 9) 71,315
Due to system's office
Deposits (4,776)
Total Current Liabilities 6,092,241 178,726
186
Virginia Community College System
Piedmont Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Piedmont
Virginia
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 931,830
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 11,999,412
Total Noncurrent Liabilities 12,931,242
Total Liabilities 19,023,483 178,726
Deferred Inflows of Resources (Note 8) 2,599,896
Total Liabilities and Deferred Inflows of Resources 21,623,379 178,726
Net Position
Net investment in capital assets 50,055,603
Restricted for:
Nonexpendable (581) 27,904,179
Expendable 1,143,080 3,548,154
Unrestricted (6,615,851)
Total Net Position 44,582,251 31,452,333
The accompanying Notes to the Financial Statements are an integral part of this statement.
187
Virginia Community College System
Piedmont Virginia Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Piedmont
Virginia
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,127,545) 8,758,628
Federal grants and contracts 1,677,726
State and local grants 2,181,766
Nongovernmental grants 140,000
Sales/services of education department 530,796
Auxiliary enterprises (net of scholarship allowance of $16,260) 142,223
Gifts and contributions 730,010
Endowment income 1,617,976
Other operating revenues 1,168,725 29,946
Total Operating Revenue 14,599,864 2,377,932
Expenses
Operating Expenses
Instruction 16,200,535
Public service 731,023
Academic support 3,990,106 1,463,841
Student services 5,583,897
Institutional support 5,667,335 844,672
Operation and maintenance 4,602,484
Scholarships and fellowships 4,727,242 242,288
Auxiliary enterprises 113,060
Fundraising 169,779
Other expenses
Total Operating Expenses (Note 12) 41,615,682 2,720,580
Operating Income (Loss) (27,015,818) (342,648)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 22,272,758
Local appropriations 63,785
Grants and gifts 5,228,266
Investment income 68,491 441,509
Interest on capital asset related debt (19,782)
Other nonoperating revenue (expense) 927,459
Net Nonoperating Revenue 28,540,977 441,509
Income before other revenues, expenses
gains (losses) 1,525,159 98,861
Capital appropriations-state (Note 20) 2,397,779
Capital appropriations-local
Capital gifts, grants and contracts 786,315
Additions to permanent and term endowments 2,426,576
Increase (Decrease) in Net Position 4,709,253 2,525,437
Net Position
Net Position beginning of year (Note 1-V) 39,872,998 28,926,896
Net Position end of year 44,582,251 31,452,333
The accompanying Notes to the Financial Statements are an integral part of this statement.
188
Virginia Community College System
Piedmont Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 6,568,954
Grants and contracts 3,912,636
Payments to suppliers and others (10,177,186)
Payments for employee wages (19,596,560)
Payments for employee fringes and pension benefits (6,756,639)
Payment for scholarships (5,061,859)
Payments for utilities (388,368)
Sales and services of education department 530,796
Auxiliary 132,916
Custodial receipts 352,206
Custodial disbursements (418,910)
PLUS, Stafford and Direct Lending loan receipts 58,520
PLUS, Stafford and Direct Lending loan disbursements (59,571)
Loans issued to students
Loans collected from students 687
Other 1,168,066
Net cash used by operating activities (29,734,312)
Cash flows from non-capital financing activities:
State appropriations 22,272,758
Local appropriations 63,785
Grants and gifts 5,427,325
Borrowings
Loan repayments
Other non-operating revenue(expense) 898,689
Net cash provided (used) by non-capital financing activities 28,662,557
Cash flows from capital and related financing activities:
Capital appropriations-state 3,615,562
Capital appropriations-local
Capital grants and gifts 786,315
Purchase capital assets (3,158,967)
Proceeds from sale of capital assets (39,475)
Debt interest payments (19,753)
Debt principal payments (322,532)
Net cash provided (used) by capital financing activities 861,150
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 68,048
Net cash provided (used) by investing activities 68,048
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (142,557)
Cash and cash equivalents, beginning of year 8,030,319
Cash and cash equivalents, End of Year 7,887,762
189
Virginia Community College System
Piedmont Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (27,015,818)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,203,988
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (2,055,194)
Prepaid expenses and other (1,488)
Post employment benefits asset (66,309)
Accrued compensation and leave 107,658
Accounts payable and other (490,130)
Unearned revenue (211,015)
Deposits pending distribution (18,479)
Custodial receipts(disbursements) (66,704)
Stafford and Direct Loan receipts(disbursements) (1,051)
Pension liability (124,319)
Post employment benefits liability (181,808)
Deferred inflows of resources related to pensions and post employment benefits (274,717)
Deferred outlflows of resources related to pensions and post employment benefits (538,926)
Net cash used in operating activities (29,734,312)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 7,898,445
Less: Securities Lending Cash Equivalents 10,683
Cash and cash equivalents end of year 7,887,762
Noncash transactions
VRS Special Revenue Allocation 80,240
Capital assets acquired through the assumption of a liability 390,823
Retainage payable 385,442
The accompanying Notes to the Financial Statements are an integral part of this statement.
190
Virginia Community College System
Rappahannock Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Rappahannock
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 6,534,596 1,083,177
Appropriation available 68
Short term investments (Note 2) 1,145,392 3,494,598
Accounts receivable, net (Note 3) 281,056 20,539
Pledges receivable (Note 3) 318,213
Due from commonwealth (Note 4)
Due from system office 14,293
Interest receivable 28,361
Prepaid expenses 259,384 2,431
Inventories 76,000
Notes receivable, net (Note 3)
Total Current Assets 8,339,150 4,918,958
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses 123,635
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 19,407,614
Other long-term investments (Note 2)
Accounts receivable, net (Note 3)
Investments in real estate (Note 2) 100,000
Pledges receivable (Note 3) 349,346
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 456,236
Non-depreciable capital assets, net (Note 5) 340,734 663,357
Depreciable capital assets, net (Note 5) 8,811,936
Total Noncurrent Assets 9,732,541 20,520,317
Total Assets 18,071,691 25,439,275
Deferred Outflows of Resources (Note 8) 2,769,410
Total Assets and Deferred Outflows of Resources 20,841,101 25,439,275
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 453,056 238,340
Accrued payroll expense 1,436,072
Unearned revenue 433,726
Long-term liabilities-current portion (Note 9) 509,820
Securities lending obligation 645
Post employment benefit obligations (Note 9) 43,883
Due to system's office
Deposits 1,194,412
Total Current Liabilities 4,071,614 238,340
191
Virginia Community College System
Rappahannock Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Rappahannock
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 489,950
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 7,982,578
Total Noncurrent Liabilities 8,472,528
Total Liabilities 12,544,142 238,340
Deferred Inflows of Resources (Note 8) 1,606,449
Total Liabilities and Deferred Inflows of Resources 14,150,591 238,340
Net Position
Net investment in capital assets 9,152,670
Restricted for:
Nonexpendable 7,305,006
Expendable 2,207,803 16,653,861
Unrestricted (4,669,963) 1,242,068
Total Net Position 6,690,510 25,200,935
The accompanying Notes to the Financial Statements are an integral part of this statement.
192
Virginia Community College System
Rappahannock Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Unit
Rappahannock
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $3,849,666) 2,279,073
Federal grants and contracts 2,371,486
State and local grants 1,144,459
Nongovernmental grants 308,177
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $11,427) 128,475
Gifts and contributions 201,558
Endowment income 1,445,562
Other operating revenues 307,002 107,288
Total Operating Revenue 6,538,672 1,754,408
Expenses
Operating Expenses
Instruction 9,760,310
Public service 341,217
Academic support 2,749,430 580,717
Student services 3,397,234
Institutional support 4,811,686 130,844
Operation and maintenance 2,767,622
Scholarships and fellowships 2,773,631 799,978
Auxiliary enterprises 189,053
Fundraising 41,055
Other expenses
Total Operating Expenses (Note 12) 26,790,183 1,552,594
Operating Income (Loss) (20,251,511) 201,814
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 15,737,117
Local appropriations 108,926
Grants and gifts 4,522,299
Investment income 33,811 1,415,336
Interest on capital asset related debt (1,695)
Other nonoperating revenue (expense) (19,970)
Net Nonoperating Revenue 20,380,488 1,415,336
Income before other revenues, expenses
gains (losses) 128,977 1,617,150
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 513
Additions to permanent and term endowments 2,906,623
Increase (Decrease) in Net Position 129,490 4,523,773
Net Position
Net Position beginning of year (Note 1-V) 6,561,020 20,677,162
Net Position end of year 6,690,510 25,200,935
The accompanying Notes to the Financial Statements are an integral part of this statement.
193
Virginia Community College System
Rappahannock Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 3,221,910
Grants and contracts 3,824,122
Payments to suppliers and others (5,947,642)
Payments for employee wages (12,553,501)
Payments for employee fringes and pension benefits (4,592,856)
Payment for scholarships (2,920,470)
Payments for utilities (274,930)
Sales and services of education department
Auxiliary 128,475
Custodial receipts 1,378
Custodial disbursements (72)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 330,002
Net cash used by operating activities (18,783,584)
Cash flows from non-capital financing activities:
State appropriations 15,737,117
Local appropriations 108,926
Grants and gifts 4,522,299
Borrowings
Loan repayments
Other non-operating revenue(expense) (7,658)
Net cash provided (used) by non-capital financing activities 20,360,684
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts
Purchase capital assets (76,999)
Proceeds from sale of capital assets
Debt interest payments (3,390)
Debt principal payments (52,161)
Net cash provided (used) by capital financing activities (132,550)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income (2,440)
Net cash provided (used) by investing activities (2,440)
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 1,442,110
Cash and cash equivalents, beginning of year 5,091,841
Cash and cash equivalents, End of Year 6,533,951
194
Virginia Community College System
Rappahannock Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (20,251,511)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,290,889
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 526,269
Prepaid expenses and other (281,834)
Post employment benefits asset (49,290)
Accrued compensation and leave 360,946
Accounts payable and other (214,880)
Unearned revenue 373,666
Deposits pending distribution 65,902
Custodial receipts(disbursements) 1,306
Stafford and Direct Loan receipts(disbursements)
Pension liability (225,119)
Post employment benefits liability (88,318)
Deferred inflows of resources related to pensions and post employment benefits (69,305)
Deferred outlflows of resources related to pensions and post employment benefits (222,305)
Net cash used in operating activities (18,783,584)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 6,534,596
Less: Securities Lending Cash Equivalents 645
Cash and cash equivalents end of year 6,533,951
Noncash transactions
Donated capital assets 513
VRS Special Revenue Allocation 49,843
Unrealized gain/loss on investments 12,735
Retainage payable 822
The accompanying Notes to the Financial Statements are an integral part of this statement.
195
Virginia Community College System
Southside Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Southside
Virginia
Community
Community College
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 15,570,545 1,275,715
Appropriation available
Short term investments (Note 2) 2,528,753
Accounts receivable, net (Note 3) 2,001,695 1,195,384
Pledges receivable (Note 3)
Due from commonwealth (Note 4) 725,348
Due from system office 60,579
Interest receivable
Prepaid expenses 319,793
Inventories
Notes receivable, net (Note 3)
Total Current Assets 18,677,960 4,999,852
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses 28,260
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 5,168,811
Other long-term investments (Note 2) 236,898
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 540,987
Non-depreciable capital assets, net (Note 5) 612,536 165,530
Depreciable capital assets, net (Note 5) 27,893,307 1,062,105
Total Noncurrent Assets 29,075,090 6,633,344
Total Assets 47,753,050 11,633,196
Deferred Outflows of Resources (Note 8) 3,201,507
Total Assets and Deferred Outflows of Resources 50,954,557 11,633,196
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 341,922 1,604,528
Accrued payroll expense 1,636,667
Unearned revenue 886,519
Long-term liabilities-current portion (Note 9) 642,520
Securities lending obligation 6,287
Post employment benefit obligations (Note 9) 56,443
Due to system's office
Deposits 722,676
Total Current Liabilities 4,293,034 1,604,528
196
Virginia Community College System
Southside Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Southside
Virginia
Community
Community College
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 737,330
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 10,113,896
Total Noncurrent Liabilities 10,851,226
Total Liabilities 15,144,260 1,604,528
Deferred Inflows of Resources (Note 8) 1,933,357
Total Liabilities and Deferred Inflows of Resources 17,077,617 1,604,528
Net Position
Net investment in capital assets 28,414,189 1,227,635
Restricted for:
Nonexpendable 2,166,131
Expendable 2,594,271
Unrestricted 2,868,480 6,634,902
Total Net Position 33,876,940 10,028,668
The accompanying Notes to the Financial Statements are an integral part of this statement.
197
Virginia Community College System
Southside Virginia Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Southside
Virginia
Community
Community College
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $6,693,939) 3,322,806
Federal grants and contracts 2,712,924
State and local grants 2,457,237 986,593
Nongovernmental grants 27,975 239,335
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $21,404) 115,555
Gifts and contributions 987,300
Endowment income 556,874
Other operating revenues 599,543 256,373
Total Operating Revenue 9,236,040 3,026,475
Expenses
Operating Expenses
Instruction 12,920,824 572,446
Public service 64,248 6
Academic support 3,435,296 145,250
Student services 2,842,318
Institutional support 5,086,488 803,448
Operation and maintenance 2,563,074 60,220
Scholarships and fellowships 4,023,906 493,520
Auxiliary enterprises 28,660
Fundraising 49,768
Other expenses
Total Operating Expenses (Note 12) 30,964,814 2,124,658
Operating Income (Loss) (21,728,774) 901,817
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 19,143,271
Local appropriations 89,309
Grants and gifts 6,798,161
Investment income 14,935 1,943
Interest on capital asset related debt
Other nonoperating revenue (expense) (475,182)
Net Nonoperating Revenue 25,570,494 1,943
Income before other revenues, expenses
gains (losses) 3,841,720 903,760
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 1,140,114
Additions to permanent and term endowments
Increase (Decrease) in Net Position 4,981,834 903,760
Net Position
Net Position beginning of year (Note 1-V) 28,895,106 9,124,908
Net Position end of year 33,876,940 10,028,668
The accompanying Notes to the Financial Statements are an integral part of this statement.
198
Virginia Community College System
Southside Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 2,791,682
Grants and contracts 4,783,568
Payments to suppliers and others (6,199,660)
Payments for employee wages (14,284,289)
Payments for employee fringes and pension benefits (5,262,947)
Payment for scholarships (4,017,379)
Payments for utilities (422,851)
Sales and services of education department
Auxiliary 91,313
Custodial receipts 388,338
Custodial disbursements (101,773)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 599,543
Net cash used by operating activities (21,634,455)
Cash flows from non-capital financing activities:
State appropriations 19,143,271
Local appropriations 89,309
Grants and gifts 6,072,813
Borrowings
Loan repayments
Other non-operating revenue(expense) (489,371)
Net cash provided (used) by non-capital financing activities 24,816,022
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 856,114
Purchase capital assets (1,125,425)
Proceeds from sale of capital assets 26,343
Debt interest payments
Debt principal payments (35,886)
Net cash provided (used) by capital financing activities (278,854)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 14,718
Net cash provided (used) by investing activities 14,718
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 2,917,431
Cash and cash equivalents, beginning of year 12,646,827
Cash and cash equivalents, End of Year 15,564,258
199
Virginia Community College System
Southside Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (21,728,774)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,461,211
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (945,053)
Prepaid expenses and other (56,819)
Post employment benefits asset (70,739)
Accrued compensation and leave 365,669
Accounts payable and other (159,230)
Unearned revenue (35,536)
Deposits pending distribution
Custodial receipts(disbursements) 286,565
Stafford and Direct Loan receipts(disbursements)
Pension liability (77,057)
Post employment benefits liability (112,153)
Deferred inflows of resources related to pensions and post employment benefits (116,547)
Deferred outlflows of resources related to pensions and post employment benefits (445,992)
Net cash used in operating activities (21,634,455)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 15,570,545
Less: Securities Lending Cash Equivalents 6,287
Cash and cash equivalents end of year 15,564,258
Noncash transactions
Donated capital assets 284,000
VRS Special Revenue Allocation 58,254
Capital assets acquired through the assumption of a liability 127,540
The accompanying Notes to the Financial Statements are an integral part of this statement.
200
Virginia Community College System
Southwest Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Southwest
Virginia
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 5,653,016 169,053
Appropriation available 48
Short term investments (Note 2) 18,383,963
Accounts receivable, net (Note 3) 775,466 406
Pledges receivable (Note 3) 69,846
Due from commonwealth (Note 4)
Due from system office 86,807
Interest receivable
Prepaid expenses 64,565 28,913
Inventories 38,000
Notes receivable, net (Note 3)
Total Current Assets 6,617,902 18,652,181
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 33,600
Appropriation available 250,000
Endowment investments (Note 2) 4,899,789
Other long-term investments (Note 2) 11,042,549
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 101,225
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 498,877
Non-depreciable capital assets, net (Note 5) 817,735 366,160
Depreciable capital assets, net (Note 5) 24,003,108 7,752,795
Total Noncurrent Assets 25,569,720 24,196,118
Total Assets 32,187,622 42,848,299
Deferred Outflows of Resources (Note 8) 3,413,923
Total Assets and Deferred Outflows of Resources 35,601,545 42,848,299
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 347,632 35,510
Accrued payroll expense 1,655,242
Unearned revenue 1,005,830
Long-term liabilities-current portion (Note 9) 527,466 95,480
Securities lending obligation 486
Post employment benefit obligations (Note 9) 61,533
Due to system's office
Deposits 81,651 26,137
Total Current Liabilities 3,679,840 157,127
201
Virginia Community College System
Southwest Virginia Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Southwest
Virginia
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue 105,056
Long-term liabilities (Note 9) 6,096,626 3,248,647
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 9,932,437
Total Noncurrent Liabilities 16,134,119 3,248,647
Total Liabilities 19,813,959 3,405,774
Deferred Inflows of Resources (Note 8) 1,815,014
Total Liabilities and Deferred Inflows of Resources 21,628,973 3,405,774
Net Position
Net investment in capital assets 19,301,253 4,790,126
Restricted for:
Nonexpendable 3,174,573
Expendable 816,255 10,901,464
Unrestricted (6,144,936) 20,576,362
Total Net Position 13,972,572 39,442,525
The accompanying Notes to the Financial Statements are an integral part of this statement.
202
Virginia Community College System
Southwest Virginia Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Southwest
Virginia
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $6,818,148) 2,352,669
Federal grants and contracts 3,392,461
State and local grants 2,161,362 85,185
Nongovernmental grants 120,631
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $21,801) 1,447,543
Gifts and contributions 577,700
Endowment income 532,033
Other operating revenues 1,006,795 531,065
Total Operating Revenue 10,481,461 1,725,983
Expenses
Operating Expenses
Instruction 12,080,386
Public service 1,972,297
Academic support 2,692,459
Student services 4,481,029
Institutional support 3,893,009 2,443,440
Operation and maintenance 4,290,574 724,678
Scholarships and fellowships 5,584,478 370,969
Auxiliary enterprises 1,075,757
Fundraising 21,473
Other expenses 137,438
Total Operating Expenses (Note 12) 36,069,989 3,697,998
Operating Income (Loss) (25,588,528) (1,972,015)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 15,196,798
Local appropriations 238,023
Grants and gifts 6,842,110
Investment income 5,108 3,088,096
Interest on capital asset related debt (180,552)
Other nonoperating revenue (expense) (21,063)
Net Nonoperating Revenue 22,080,424 3,088,096
Income before other revenues, expenses
gains (losses) (3,508,104) 1,116,081
Capital appropriations-state (Note 20) 250,000
Capital appropriations-local
Capital gifts, grants and contracts 568,445
Additions to permanent and term endowments 60,782
Increase (Decrease) in Net Position (2,689,659) 1,176,863
Net Position
Net Position beginning of year (Note 1-V) 16,662,231 38,265,662
Net Position end of year 13,972,572 39,442,525
The accompanying Notes to the Financial Statements are an integral part of this statement.
203
Virginia Community College System
Southwest Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 2,728,388
Grants and contracts 5,789,840
Payments to suppliers and others (5,640,147)
Payments for employee wages (14,147,666)
Payments for employee fringes and pension benefits (5,223,310)
Payment for scholarships (5,854,936)
Payments for utilities (1,096,828)
Sales and services of education department
Auxiliary 1,447,543
Custodial receipts 17,087
Custodial disbursements (21,423)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 996,522
Net cash used by operating activities (21,004,930)
Cash flows from non-capital financing activities:
State appropriations 15,196,798
Local appropriations 238,023
Grants and gifts 6,859,971
Borrowings
Loan repayments
Other non-operating revenue(expense) 20,480
Net cash provided (used) by non-capital financing activities 22,315,272
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 460,426
Purchase capital assets (720,487)
Proceeds from sale of capital assets
Debt interest payments (349,331)
Debt principal payments (145,798)
Net cash provided (used) by capital financing activities (755,190)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 4,997
Net cash provided (used) by investing activities 4,997
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 560,149
Cash and cash equivalents, beginning of year 5,092,381
Cash and cash equivalents, End of Year 5,652,530
204
Virginia Community College System
Southwest Virginia Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (25,588,528)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 4,102,820
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 260,468
Prepaid expenses and other 145,809
Post employment benefits asset (58,890)
Accrued compensation and leave (17,648)
Accounts payable and other 137,750
Unearned revenue 220,364
Deposits pending distribution
Custodial receipts(disbursements) (4,336)
Stafford and Direct Loan receipts(disbursements)
Pension liability (90,481)
Post employment benefits liability (216,333)
Deferred inflows of resources related to pensions and post employment benefits 22,741
Deferred outlflows of resources related to pensions and post employment benefits 81,334
Net cash used in operating activities (21,004,930)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 5,653,016
Less: Securities Lending Cash Equivalents 486
Cash and cash equivalents end of year 5,652,530
Noncash transactions
Donated capital assets 108,019
VRS Special Revenue Allocation 59,337
Capital assets acquired through the assumption of a liability 5,435,007
The accompanying Notes to the Financial Statements are an integral part of this statement.
205
Virginia Community College System
Virginia Peninsula Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Virginia
Peninsula
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 26,928,987 3,463,851
Appropriation available 298
Short term investments (Note 2)
Accounts receivable, net (Note 3) 1,032,036
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from system office 1,444,787
Interest receivable
Prepaid expenses 166,184
Inventories 850
Notes receivable, net (Note 3)
Total Current Assets 29,573,142 3,463,851
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) (184,840)
Prepaid expenses 29,944
Endowment cash and cash equivalents (Note 2)
Appropriation available 12,893,270
Endowment investments (Note 2) 9,929,851
Other long-term investments (Note 2) 2,721,125
Accounts receivable, net (Note 3)
Investments in real estate (Note 2) 558,900
Pledges receivable (Note 3)
Due from commonwealth (Note 4) 396,030
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 850,086
Non-depreciable capital assets, net (Note 5) 27,537,618
Depreciable capital assets, net (Note 5) 41,817,825
Total Noncurrent Assets 83,339,933 13,209,876
Total Assets 112,913,075 16,673,727
Deferred Outflows of Resources (Note 8) 4,818,688
Total Assets and Deferred Outflows of Resources 117,731,763 16,673,727
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 5,997,203 57,220
Accrued payroll expense 1,756,497
Unearned revenue 1,982,144
Long-term liabilities-current portion (Note 9) 1,008,658 14,155
Securities lending obligation 15,286
Post employment benefit obligations (Note 9) 75,759
Due to system's office
Deposits 544,102
Total Current Liabilities 11,379,649 71,375
206
Virginia Community College System
Virginia Peninsula Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Virginia
Peninsula
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 895,915 99,020
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 15,661,550
Total Noncurrent Liabilities 16,557,465 99,020
Total Liabilities 27,937,114 170,395
Deferred Inflows of Resources (Note 8) 4,425,378
Total Liabilities and Deferred Inflows of Resources 32,362,492 170,395
Net Position
Net investment in capital assets 69,185,175
Restricted for:
Nonexpendable 3,954,783
Expendable 14,423,072 10,425,728
Unrestricted 1,761,024 2,122,821
Total Net Position 85,369,271 16,503,332
The accompanying Notes to the Financial Statements are an integral part of this statement.
207
Virginia Community College System
Virginia Peninsula Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Virginia
Peninsula
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $10,694,738) 9,562,863
Federal grants and contracts 2,250,002
State and local grants 2,416,572
Nongovernmental grants 151,670
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $33,728) 321,737
Gifts and contributions 143,286
Endowment income 1,374,840
Other operating revenues 1,676,199 420,014
Total Operating Revenue 16,227,373 2,089,810
Expenses
Operating Expenses
Instruction 18,839,764 40,930
Public service 1,318,769 1,151,982
Academic support 2,231,090 233,767
Student services 4,824,685
Institutional support 13,665,291 440,536
Operation and maintenance 7,741,248
Scholarships and fellowships 7,435,959 189,280
Auxiliary enterprises 137,055
Fundraising 140,542
Other expenses 4,265
Total Operating Expenses (Note 12) 56,193,861 2,201,302
Operating Income (Loss) (39,966,488) (111,492)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 32,360,969
Local appropriations 52,889
Grants and gifts 9,833,545
Investment income 395,937 312,259
Interest on capital asset related debt (8,709)
Other nonoperating revenue (expense) 3,646,478
Net Nonoperating Revenue 46,281,109 312,259
Income before other revenues, expenses
gains (losses) 6,314,621 200,767
Capital appropriations-state (Note 20) 533,845
Capital appropriations-local 636,496
Capital gifts, grants and contracts 836,388
Additions to permanent and term endowments
Increase (Decrease) in Net Position 8,321,350 200,767
Net Position
Net Position beginning of year (Note 1-V) 77,047,921 16,302,565
Net Position end of year 85,369,271 16,503,332
The accompanying Notes to the Financial Statements are an integral part of this statement.
208
Virginia Community College System
Virginia Peninsula Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 9,707,715
Grants and contracts 4,259,424
Payments to suppliers and others (14,501,942)
Payments for employee wages (24,286,363)
Payments for employee fringes and pension benefits (7,963,136)
Payment for scholarships (7,445,747)
Payments for utilities (1,203,894)
Sales and services of education department
Auxiliary 357,881
Custodial receipts 124,992
Custodial disbursements (19,978)
PLUS, Stafford and Direct Lending loan receipts 2,406,016
PLUS, Stafford and Direct Lending loan disbursements (2,394,486)
Loans issued to students
Loans collected from students
Other 1,530,236
Net cash used by operating activities (39,429,282)
Cash flows from non-capital financing activities:
State appropriations 32,360,969
Local appropriations 52,889
Grants and gifts 9,883,437
Borrowings
Loan repayments
Other non-operating revenue(expense) 2,960,650
Net cash provided (used) by non-capital financing activities 45,257,945
Cash flows from capital and related financing activities:
Capital appropriations-state 374,476
Capital appropriations-local 636,496
Capital grants and gifts 836,388
Purchase capital assets (9,482,673)
Proceeds from sale of capital assets 43,101
Debt interest payments 2,761
Debt principal payments (371,221)
Net cash provided (used) by capital financing activities (7,960,672)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 395,223
Net cash provided (used) by investing activities 395,223
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (1,736,786)
Cash and cash equivalents, beginning of year 28,465,647
Cash and cash equivalents, End of Year 26,728,861
209
Virginia Community College System
Virginia Peninsula Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (39,966,488)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 3,755,012
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (349,058)
Prepaid expenses and other 201,300
Post employment benefits asset (72,804)
Accrued compensation and leave 173,652
Accounts payable and other (577,883)
Unearned revenue (5,283)
Deposits pending distribution (20,430)
Custodial receipts(disbursements) 105,014
Stafford and Direct Loan receipts(disbursements) 11,530
Pension liability (339,463)
Post employment benefits liability (252,080)
Deferred inflows of resources related to pensions and post employment benefits (1,565,959)
Deferred outlflows of resources related to pensions and post employment benefits (526,342)
Net cash used in operating activities (39,429,282)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 26,744,147
Less: Securities Lending Cash Equivalents 15,286
Cash and cash equivalents end of year 26,728,861
Noncash transactions
VRS Special Revenue Allocation 97,025
Capital assets acquired through the assumption of a liability 109,673
Retainage payable 943,640
The accompanying Notes to the Financial Statements are an integral part of this statement.
210
Virginia Community College System
Tidewater Community College
Statement of Net Position
As of June 30, 2025
Component Units
Tidewater Tidewater
Community Community
College College Real
Community Educational Estate
College Foundation Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 34,721,232 2,335,587 788,907
Appropriation available
Short term investments (Note 2) 15,951,273
Accounts receivable, net (Note 3) 4,295,783 15,000
Pledges receivable (Note 3) 387,947
Due from commonwealth (Note 4) 911,676
Due from system office 297,575
Interest receivable 179,405
Prepaid expenses 764,608 41,763 29,477
Inventories 373,608
Notes receivable, net (Note 3)
Total Current Assets 57,495,160 2,765,297 833,384
Noncurrent Assets
Restricted cash and cash equivalents (Note 2) 59,192
Prepaid expenses 11,410
Endowment cash and cash equivalents (Note 2) 200,842
Appropriation available 3,109,313
Endowment investments (Note 2) 3,204,053
Other long-term investments (Note 2) 22,300,754 7,746,478 6,276,742
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 614,695
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 2,496,224
Non-depreciable capital assets, net (Note 5) 17,132,094 4,295,394
Depreciable capital assets, net (Note 5) 254,586,526 12,536,860
Total Noncurrent Assets 299,695,513 11,766,068 23,108,996
Total Assets 357,190,673 14,531,365 23,942,380
Deferred Outflows of Resources (Note 8) 14,700,538
Total Assets and Deferred Outflows of Resources 371,891,211 14,531,365 23,942,380
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 2,526,311 262,121 39,528
Accrued payroll expense 7,011,744
Unearned revenue 5,277,801 333,810
Long-term liabilities-current portion (Note 9) 8,805,267 570 294,287
Securities lending obligation 20,080
Post employment benefit obligations (Note 9) 231,371
Due to system's office
Deposits 578,055
Total Current Liabilities 24,450,629 262,691 667,625
211
Virginia Community College System
Tidewater Community College
Statement of Net Position
As of June 30, 2025
Component Units
Tidewater Tidewater
Community Community
College College Real
Community Educational Estate
College Foundation Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 41,048,707 2,087 9,260,839
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 45,864,063
Total Noncurrent Liabilities 86,912,770 2,087 9,260,839
Total Liabilities 111,363,399 264,778 9,928,464
Deferred Inflows of Resources (Note 8) 13,545,728
Total Liabilities and Deferred Inflows of Resources 124,909,127 264,778 9,928,464
Net Position
Net investment in capital assets 227,389,072 7,277,127
Restricted for:
Nonexpendable 3,404,895
Expendable 8,219,810 8,448,263
Unrestricted 11,373,202 2,413,429 6,736,789
Total Net Position 246,982,084 14,266,587 14,013,916
The accompanying Notes to the Financial Statements are an integral part of this statement.
212
Virginia Community College System
Tidewater Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Units
Tidewater Tidewater
Community Community
College College Real
Community Educational Estate
Revenues College Foundation Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $24,776,970) 27,001,764
Federal grants and contracts 5,281,941
State and local grants 2,807,841
Nongovernmental grants 368,270
Sales/services of education department 18,952
Auxiliary enterprises (net of scholarship allowance of $79,351) 7,666,042
Gifts and contributions 1,759,874
Endowment income
Other operating revenues 1,725,117 335,333 2,104,128
Total Operating Revenue 44,869,927 2,095,207 2,104,128
Expenses
Operating Expenses
Instruction 51,820,344 60,223
Public service 5,176,523
Academic support 9,249,913 79,817
Student services 14,768,059 280,535
Institutional support 23,566,540 1,315,000 748,684
Operation and maintenance 16,148,747 561,550
Scholarships and fellowships 25,309,634 380,742
Auxiliary enterprises 5,439,624
Fundraising 45,137
Other expenses 570
Total Operating Expenses (Note 12) 151,479,384 2,162,024 1,310,234
Operating Income (Loss) (106,609,457) (66,817) 793,894
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 78,670,321
Local appropriations 11,880
Grants and gifts 29,529,500
Investment income 2,292,095 1,264,675 645,473
Interest on capital asset related debt (1,506,046)
Other nonoperating revenue (expense) 1,541,586
Net Nonoperating Revenue 110,539,336 1,264,675 645,473
Income before other revenues, expenses
gains (losses) 3,929,879 1,197,859 1,439,367
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 862,080
Additions to permanent and term endowments 7,930
Increase (Decrease) in Net Position 4,791,959 1,205,789 1,439,367
Net Position
Net Position beginning of year (Note 1-V) 242,190,125 13,060,798 12,574,549
Net Position end of year 246,982,084 14,266,587 14,013,916
The accompanying Notes to the Financial Statements are an integral part of this statement.
213
Virginia Community College System
Tidewater Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 26,551,887
Grants and contracts 8,289,195
Payments to suppliers and others (25,007,525)
Payments for employee wages (70,500,275)
Payments for employee fringes and pension benefits (23,071,582)
Payment for scholarships (25,008,342)
Payments for utilities (3,969,573)
Sales and services of education department 18,952
Auxiliary 7,666,042
Custodial receipts 716,888
Custodial disbursements (699,564)
PLUS, Stafford and Direct Lending loan receipts 8,445,271
PLUS, Stafford and Direct Lending loan disbursements (8,434,664)
Loans issued to students
Loans collected from students
Other 1,725,117
Net cash used by operating activities (103,278,173)
Cash flows from non-capital financing activities:
State appropriations 78,670,321
Local appropriations 11,880
Grants and gifts 29,413,815
Borrowings
Loan repayments
Other non-operating revenue(expense) 1,420,634
Net cash provided (used) by non-capital financing activities 109,516,650
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 862,080
Purchase capital assets (6,859,958)
Proceeds from sale of capital assets 24,830
Debt interest payments (1,937,180)
Debt principal payments (7,671,444)
Net cash provided (used) by capital financing activities (15,581,672)
Cash flows from investing activities:
Purchases of investments (15,015,000)
Sale of investments 13,400,000
Investment income 1,916,914
Net cash provided (used) by investing activities 301,914
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (9,041,281)
Cash and cash equivalents, beginning of year 43,801,625
Cash and cash equivalents, End of Year 34,760,344
214
Virginia Community College System
Tidewater Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (106,609,457)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 12,257,812
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (329,083)
Prepaid expenses and other 412,427
Post employment benefits asset (36,702)
Accrued compensation and leave (1,245,279)
Accounts payable and other (495,096)
Unearned revenue (299,785)
Deposits pending distribution 2,413
Custodial receipts(disbursements) 17,324
Stafford and Direct Loan receipts(disbursements) 10,607
Pension liability (5,244,223)
Post employment benefits liability (1,476,062)
Deferred inflows of resources related to pensions and post employment benefits 1,065,983
Deferred outlflows of resources related to pensions and post employment benefits (1,309,052)
Net cash used in operating activities (103,278,173)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 34,780,424
Less: Securities Lending Cash Equivalents 20,080
Cash and cash equivalents end of year 34,760,344
Noncash transactions
VRS Special Revenue Allocation 274,095
Amortization of bond premium 349,718
Unrealized gain/loss on investments 396,270
Amortization of deferral on debt defeasance (203,200)
Capital assets acquired through the assumption of a liability 4,958,970
Retainage payable 165,412
The accompanying Notes to the Financial Statements are an integral part of this statement.
215
Virginia Community College System
Virginia Highlands Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Virginia
Highlands
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 6,621,980 2,154,378
Appropriation available 846
Short term investments (Note 2) 257,156
Accounts receivable, net (Note 3) 953,831 5,448
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from system office 826,672
Interest receivable
Prepaid expenses 83,917
Inventories
Notes receivable, net (Note 3)
Total Current Assets 8,744,402 2,159,826
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 1,569,906
Other long-term investments (Note 2)
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 381,430
Non-depreciable capital assets, net (Note 5) 1,480,306 4,646,994
Depreciable capital assets, net (Note 5) 7,038,085 20,131
Total Noncurrent Assets 8,899,821 6,237,031
Total Assets 17,644,223 8,396,857
Deferred Outflows of Resources (Note 8) 2,408,231
Total Assets and Deferred Outflows of Resources 20,052,454 8,396,857
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,201,337 59,568
Accrued payroll expense 1,361,270
Unearned revenue 320,351
Long-term liabilities-current portion (Note 9) 360,819
Securities lending obligation 6
Post employment benefit obligations (Note 9) 44,877
Due to system's office
Deposits 1,097,224
Total Current Liabilities 4,385,884 59,568
216
Virginia Community College System
Virginia Highlands Community College
Statement of Net Position
As of June 30, 2025
Component
Unit
Virginia
Highlands
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 298,399
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 7,047,035
Total Noncurrent Liabilities 7,345,434
Total Liabilities 11,731,318 59,568
Deferred Inflows of Resources (Note 8) 1,416,788
Total Liabilities and Deferred Inflows of Resources 13,148,106 59,568
Net Position
Net investment in capital assets 8,518,391 4,667,125
Restricted for:
Nonexpendable 1,569,906
Expendable 725,807 453,877
Unrestricted (2,339,850) 1,646,381
Total Net Position 6,904,348 8,337,289
The accompanying Notes to the Financial Statements are an integral part of this statement.
217
Virginia Community College System
Virginia Highlands Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Virginia
Highlands
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $2,749,942) 2,178,674
Federal grants and contracts 1,655,247
State and local grants 898,933 641,023
Nongovernmental grants
Sales/services of education department 3,200
Auxiliary enterprises (net of scholarship allowance of $8,815) 62,066
Gifts and contributions 377,576
Endowment income 147,981
Other operating revenues 464,194 98,256
Total Operating Revenue 5,262,314 1,264,836
Expenses
Operating Expenses
Instruction 7,978,068
Public service 701,765
Academic support 2,295,661 280,949
Student services 2,573,985
Institutional support 3,546,051 4,162,829
Operation and maintenance 2,108,615
Scholarships and fellowships 3,334,107
Auxiliary enterprises 58,716
Fundraising 44,080
Other expenses
Total Operating Expenses (Note 12) 22,596,968 4,487,858
Operating Income (Loss) (17,334,654) (3,223,022)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 14,540,999
Local appropriations 110,213
Grants and gifts 4,025,333
Investment income 21,653 1,646
Interest on capital asset related debt (201)
Other nonoperating revenue (expense) 832,701
Net Nonoperating Revenue 19,530,698 1,646
Income before other revenues, expenses
gains (losses) 2,196,044 (3,221,376)
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 140,465 1,067
Additions to permanent and term endowments
Increase (Decrease) in Net Position 2,336,509 (3,220,309)
Net Position
Net Position beginning of year (Note 1-V) 4,567,839 11,557,598
Net Position end of year 6,904,348 8,337,289
The accompanying Notes to the Financial Statements are an integral part of this statement.
218
Virginia Community College System
Virginia Highlands Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 1,739,955
Grants and contracts 2,129,537
Payments to suppliers and others (4,312,588)
Payments for employee wages (10,279,365)
Payments for employee fringes and pension benefits (3,875,673)
Payment for scholarships (4,086,866)
Payments for utilities (318,279)
Sales and services of education department 3,200
Auxiliary 62,066
Custodial receipts 646,521
Custodial disbursements (191,626)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 468,943
Net cash used by operating activities (18,014,175)
Cash flows from non-capital financing activities:
State appropriations 14,540,999
Local appropriations 110,213
Grants and gifts 4,219,214
Borrowings
Loan repayments
Other non-operating revenue(expense) 6,466
Net cash provided (used) by non-capital financing activities 18,876,892
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 21,724
Purchase capital assets (957,924)
Proceeds from sale of capital assets 22,988
Debt interest payments 210
Debt principal payments (7,299)
Net cash provided (used) by capital financing activities (920,301)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 8,173
Net cash provided (used) by investing activities 8,173
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents (49,411)
Cash and cash equivalents, beginning of year 6,671,385
Cash and cash equivalents, End of Year 6,621,974
219
Virginia Community College System
Virginia Highlands Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (17,334,654)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 582,495
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net (674,160)
Prepaid expenses and other 7,035
Post employment benefits asset (35,512)
Accrued compensation and leave 65,697
Accounts payable and other (404,728)
Unearned revenue (186,010)
Deposits pending distribution 846
Custodial receipts(disbursements) 454,895
Stafford and Direct Loan receipts(disbursements)
Pension liability (220,526)
Post employment benefits liability (56,319)
Deferred inflows of resources related to pensions and post employment benefits (70,759)
Deferred outlflows of resources related to pensions and post employment benefits (142,475)
Net cash used in operating activities (18,014,175)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 6,621,980
Less: Securities Lending Cash Equivalents 6
Cash and cash equivalents end of year 6,621,974
Noncash transactions
Donated capital assets 118,741
VRS Special Revenue Allocation 40,587
Unrealized gain/loss on investments 13,480
Retainage payable 53,874
The accompanying Notes to the Financial Statements are an integral part of this statement.
220
Virginia Community College System
Virginia Western Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Virginia Western
Community
College
Community Educational
College Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 20,967,355 31,325
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3) 157,494
Pledges receivable (Note 3) 663,595
Due from commonwealth (Note 4)
Due from system office 747,866
Interest receivable 30,149
Prepaid expenses 877,737 45,948
Inventories
Notes receivable, net (Note 3)
Total Current Assets 22,750,452 771,017
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2) 953,989
Appropriation available
Endowment investments (Note 2) 31,197,348
Other long-term investments (Note 2) 6,811,889
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 1,020,887
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 870,893
Non-depreciable capital assets, net (Note 5) 2,803,340
Depreciable capital assets, net (Note 5) 73,015,131
Total Noncurrent Assets 76,689,364 39,984,113
Total Assets 99,439,816 40,755,130
Deferred Outflows of Resources (Note 8) 5,204,840
Total Assets and Deferred Outflows of Resources 104,644,656 40,755,130
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 1,857,929 183,086
Accrued payroll expense 2,477,152
Unearned revenue 1,686,478
Long-term liabilities-current portion (Note 9) 1,742,325
Securities lending obligation 4,310
Post employment benefit obligations (Note 9) 91,564
Due to system's office
Deposits 210,632
Total Current Liabilities 8,070,390 183,086
221
Virginia Community College System
Virginia Western Community College
Statement of Net Position
As of June 30, 2025
Component Unit
Virginia Western
Community
College
Community Educational
College Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 7,730,399
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 16,606,081
Total Noncurrent Liabilities 24,336,480
Total Liabilities 32,406,870 183,086
Deferred Inflows of Resources (Note 8) 3,249,226
Total Liabilities and Deferred Inflows of Resources 35,656,096 183,086
Net Position
Net investment in capital assets 68,116,140
Restricted for:
Nonexpendable 14,442,580
Expendable 1,618,532 21,218,752
Unrestricted (746,112) 4,910,712
Total Net Position 68,988,560 40,572,044
The accompanying Notes to the Financial Statements are an integral part of this statement.
222
Virginia Community College System
Virginia Western Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Unit
Virginia Western
Community
College
Community Educational
Revenues College Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $10,082,637) 9,983,241
Federal grants and contracts 1,717,015
State and local grants 1,818,159
Nongovernmental grants 59,030
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $32,263) 622,299
Gifts and contributions 1,365,245
Endowment income 3,717,945
Other operating revenues 699,030 3,831,962
Total Operating Revenue 14,898,774 8,915,152
Expenses
Operating Expenses
Instruction 21,918,774
Public service 1,185,239
Academic support 6,666,085
Student services 4,438,145
Institutional support 6,381,231 896,095
Operation and maintenance 7,811,409
Scholarships and fellowships 7,225,339 1,610,357
Auxiliary enterprises 224,639
Fundraising 183,060
Other expenses
Total Operating Expenses (Note 12) 55,850,861 2,689,512
Operating Income (Loss) (40,952,087) 6,225,640
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 31,243,091
Local appropriations
Grants and gifts 10,198,180
Investment income 446,318 787,751
Interest on capital asset related debt (42,188)
Other nonoperating revenue (expense) 3,095,717
Net Nonoperating Revenue 44,941,118 787,751
Income before other revenues, expenses
gains (losses) 3,989,031 7,013,391
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 242,057
Additions to permanent and term endowments 2,320,760
Increase (Decrease) in Net Position 4,231,088 9,334,151
Net Position
Net Position beginning of year (Note 1-V) 64,757,472 31,237,893
Net Position end of year 68,988,560 40,572,044
The accompanying Notes to the Financial Statements are an integral part of this statement.
223
Virginia Community College System
Virginia Western Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 9,534,515
Grants and contracts 3,628,133
Payments to suppliers and others (9,305,371)
Payments for employee wages (24,877,860)
Payments for employee fringes and pension benefits (8,721,989)
Payment for scholarships (8,441,640)
Payments for utilities (1,601,810)
Sales and services of education department
Auxiliary 622,299
Custodial receipts 1,469,600
Custodial disbursements (1,470,021)
PLUS, Stafford and Direct Lending loan receipts 2,247,901
PLUS, Stafford and Direct Lending loan disbursements (2,254,273)
Loans issued to students
Loans collected from students
Other 699,030
Net cash used by operating activities (38,471,486)
Cash flows from non-capital financing activities:
State appropriations 31,243,091
Local appropriations
Grants and gifts 10,314,202
Borrowings
Loan repayments
Other non-operating revenue(expense) 2,420,798
Net cash provided (used) by non-capital financing activities 43,978,091
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 242,057
Purchase capital assets (1,471,444)
Proceeds from sale of capital assets 22,886
Debt interest payments (178,622)
Debt principal payments (3,761,035)
Net cash provided (used) by capital financing activities (5,146,158)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income 445,876
Net cash provided (used) by investing activities 445,876
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 806,323
Cash and cash equivalents, beginning of year 20,156,722
Cash and cash equivalents, End of Year 20,963,045
224
Virginia Community College System
Virginia Western Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (40,952,087)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 4,139,569
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 348,538
Prepaid expenses and other (132,389)
Post employment benefits asset (94,528)
Accrued compensation and leave 96,090
Accounts payable and other 266,281
Unearned revenue (743,771)
Deposits pending distribution (19,564)
Custodial receipts(disbursements) (421)
Stafford and Direct Loan receipts(disbursements) (6,372)
Pension liability (189,581)
Post employment benefits liability (254,719)
Deferred inflows of resources related to pensions and post employment benefits (99,653)
Deferred outlflows of resources related to pensions and post employment benefits (828,879)
Net cash used in operating activities (38,471,486)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 20,967,355
Less: Securities Lending Cash Equivalents 4,310
Cash and cash equivalents end of year 20,963,045
Noncash transactions
VRS Special Revenue Allocation 100,531
Capital assets acquired through the assumption of a liability 4,628,943
Retainage payable 87,243
The accompanying Notes to the Financial Statements are an integral part of this statement.
225
Virginia Community College System
Wytheville Community College
Statement of Net Position
As of June 30, 2025
Component Units
Wytheville Wytheville Wytheville
Community Community Community
College College College Real
Community Educational Scholarship Estate
College Foundation Foundation Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 12,854,647 814,938 7,469 225,161
Appropriation available
Short term investments (Note 2) 228,040 662,185 52,731
Accounts receivable, net (Note 3) 95,604 452,587 231,557
Pledges receivable (Note 3) 6,580
Due from commonwealth (Note 4) 611,086
Due from system office 5,397
Interest receivable
Prepaid expenses 563,919
Inventories 47,828
Notes receivable, net (Note 3)
Total Current Assets 14,406,521 1,936,290 60,200 456,718
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses 239,772
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2) 9,143,807 606,261
Other long-term investments (Note 2) 6,840,638 171,594
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 1,295
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 357,792
Non-depreciable capital assets, net (Note 5) 838,706 43,393 383,698
Depreciable capital assets, net (Note 5) 14,363,725 1,445,105
Total Noncurrent Assets 15,799,995 16,029,133 777,855 1,828,803
Total Assets 30,206,516 17,965,423 838,055 2,285,521
Deferred Outflows of Resources (Note 8) 2,404,663
Total Assets and Deferred Outflows of Resources 32,611,179 17,965,423 838,055 2,285,521
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 424,461 606,742 2,064
Accrued payroll expense 1,136,632
Unearned revenue 476,491
Long-term liabilities-current portion (Note 9) 725,786 16,737
Securities lending obligation 1,737
Post employment benefit obligations (Note 9) 38,451
Due to system's office
Deposits 314,448
Total Current Liabilities 3,118,006 606,742 18,801
226
Virginia Community College System
Wytheville Community College
Statement of Net Position
As of June 30, 2025
Component Units
Wytheville Wytheville Wytheville
Community Community Community
College College College Real
Community Educational Scholarship Estate
College Foundation Foundation Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 1,135,779 1,080,978
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 6,740,247
Total Noncurrent Liabilities 7,876,026 1,080,978
Total Liabilities 10,994,032 606,742 1,099,779
Deferred Inflows of Resources (Note 8) 1,358,566
Total Liabilities and Deferred Inflows of Resources 12,352,598 606,742 1,099,779
Net Position
Net investment in capital assets 14,065,470 43,393 731,088
Restricted for:
Nonexpendable 9,145,102 606,261
Expendable 1,642,100 7,850,497 231,527
Unrestricted 4,551,011 319,689 267 454,654
Total Net Position 20,258,581 17,358,681 838,055 1,185,742
The accompanying Notes to the Financial Statements are an integral part of this statement.
227
Virginia Community College System
Wytheville Community College
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component Units
Wytheville Wytheville Wytheville
Community Community Community
College College College Real
Community Educational Scholarship Estate
Revenues College Foundation Foundation Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $5,144,832) 1,009,729
Federal grants and contracts 1,930,886
State and local grants 1,653,287 282,712
Nongovernmental grants 1,121,418
Sales/services of education department 15,123
Auxiliary enterprises (net of scholarship allowance of $16,471) 106,853
Gifts and contributions 18,805 1,056,016
Endowment income 1,214,903 86,811
Other operating revenues 1,313,710 730,694 205,633
Total Operating Revenue 6,029,588 3,368,532 86,811 1,261,649
Expenses
Operating Expenses
Instruction 9,051,132 2,327
Public service 177,696 127,598
Academic support 2,435,344 799,594 79,911
Student services 2,346,997
Institutional support 4,158,960 161,286 125
Operation and maintenance 2,627,351
Scholarships and fellowships 3,438,100 1,111,207 60,000
Auxiliary enterprises 23,672
Fundraising 134,788
Other expenses 1,055,616
Total Operating Expenses (Note 12) 24,259,252 3,392,416 60,125 79,911
Operating Income (Loss) (18,229,664) (23,884) 26,686 1,181,738
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 17,847,975
Local appropriations 156,086
Grants and gifts 5,409,905
Investment income 130,190 384,331 10 4,005
Interest on capital asset related debt (107,721)
Other nonoperating revenue (expense) (4,149,776)
Net Nonoperating Revenue 19,286,659 384,331 10 4,005
Income before other revenues, expenses
gains (losses) 1,056,995 360,447 26,696 1,185,743
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts 516,506
Additions toypermanent
g ( and)term endowments 1,117,627 9,379
Increase (Decrease) in Net Position 1,573,501 1,478,074 36,075 1,185,743
Net Position
Net Position beginning of year (Note 1-V) 18,685,080 15,880,607 801,980
Net Position end of year 20,258,581 17,358,681 838,055 1,185,743
The accompanying Notes to the Financial Statements are an integral part of this statement.
228
Virginia Community College System
Wytheville Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Community
College
Cash flows from operating activities:
Tuition and fees 1,082,204
Grants and contracts 3,592,300
Payments to suppliers and others (5,822,112)
Payments for employee wages (10,221,137)
Payments for employee fringes and pension benefits (3,646,029)
Payment for scholarships (3,487,750)
Payments for utilities (380,962)
Sales and services of education department 15,123
Auxiliary 99,215
Custodial receipts 3,361,064
Custodial disbursements (3,423,179)
PLUS, Stafford and Direct Lending loan receipts 394,843
PLUS, Stafford and Direct Lending loan disbursements (394,843)
Loans issued to students
Loans collected from students
Other 1,446,246
Net cash used by operating activities (17,385,017)
Cash flows from non-capital financing activities:
State appropriations 17,847,975
Local appropriations 156,086
Grants and gifts 5,248,484
Borrowings
Loan repayments
Other non-operating revenue(expense) (4,162,333)
Net cash provided (used) by non-capital financing activities 19,090,212
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts 495,555
Purchase capital assets (995,046)
Proceeds from sale of capital assets 7,624
Debt interest payments (115,798)
Debt principal payments (471,453)
Net cash provided (used) by capital financing activities (1,079,118)
Cash flows from investing activities:
Purchases of investments (228,040)
Sale of investments 228,040
Investment income 121,625
Net cash provided (used) by investing activities 121,625
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 747,702
Cash and cash equivalents, beginning of year 12,105,208
Cash and cash equivalents, End of Year 12,852,910
229
Virginia Community College System
Wytheville Community College
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (18,229,664)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 1,650,338
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 131,161
Prepaid expenses and other (110,054)
Post employment benefits asset (40,556)
Accrued compensation and leave 110,576
Accounts payable and other (436,597)
Unearned revenue 78,861
Deposits pending distribution
Custodial receipts(disbursements) (61,495)
Stafford and Direct Loan receipts(disbursements)
Pension liability (66,725)
Post employment benefits liability (116,526)
Deferred inflows of resources related to pensions and post employment benefits (219,688)
Deferred outlflows of resources related to pensions and post employment benefits (74,648)
Net cash used in operating activities (17,385,017)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 12,854,647
Less: Securities Lending Cash Equivalents 1,737
Cash and cash equivalents end of year 12,852,910
Noncash transactions
Donated capital assets 20,951
VRS Special Revenue Allocation 37,578
Unrealized gain/loss on investments 8,185
Capital assets acquired through the assumption of a liability 92,806
The accompanying Notes to the Financial Statements are an integral part of this statement.
230
Virginia Community College System
System Office
Statement of Net Position
As of June 30, 2025
Component
Unit
Community
Colleges of VA
Educational
System Office Foundation
Assets
Current Assets
Cash and cash equivalents (Note 2) 56,284,608 3,355,390
Appropriation available 60,784,097
Short term investments (Note 2)
Accounts receivable, net (Note 3) 70,016
Pledges receivable (Note 3) 332,950
Due from commonwealth (Note 4) 3,024,214
Due from colleges
Interest receivable
Prepaid expenses 5,174,971
Inventories 5,000
Notes receivable, net (Note 3)
Total Current Assets 125,272,890 3,758,356
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses 237,402
Endowment cash and cash equivalents (Note 2) 3,317,023
Appropriation available
Endowment investments (Note 2) 5,206,307
Other long-term investments (Note 2) 4,579,806
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3) 217,452
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 1,331,093
Non-depreciable capital assets, net (Note 5)
Depreciable capital assets, net (Note 5) 18,477,800
Total Noncurrent Assets 20,046,295 13,320,588
Total Assets 145,319,185 17,078,944
Deferred Outflows of Resources (Note 8) 7,253,002
Total Assets and Deferred Outflows of Resources 152,572,187 17,078,944
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 8,799,534 526,508
Accrued payroll expense 1,890,068
Unearned revenue
Long-term liabilities-current portion (Note 9) 6,961,365
Securities lending obligation
Post employment benefit obligations (Note 9) 81,907
Due to colleges 7,069,920
Deposits 1,042,112 102,551
Total Current Liabilities 25,844,906 629,059
231
Virginia Community College System
System Office
Statement of Net Position
As of June 30, 2025
Component
Unit
Community
Colleges of VA
Educational
System Office Foundation
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 8,680,554
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 22,417,397
Total Noncurrent Liabilities 31,097,951
Total Liabilities 56,942,857 629,059
Deferred Inflows of Resources (Note 8) 4,306,524
Total Liabilities and Deferred Inflows of Resources 61,249,381 629,059
Net Position
Net investment in capital assets 5,958,046
Restricted for:
Nonexpendable 3,905,280
Expendable 101,801,765 8,105,042
Unrestricted (16,437,005) 4,439,563
Total Net Position 91,322,806 16,449,885
The accompanying Notes to the Financial Statements are an integral part of this statement.
232
Virginia Community College System
System Office
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Component
Unit
Community
Colleges of VA
System's Educational
Revenues Office Foundation
Operating Revenue
Tuition and fees (net of scholarship allowance of $0)
Federal grants and contracts 9,497,096 2,399,989
State and local grants 423,422 1,225,000
Nongovernmental grants 1,579,453
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $0)
Gifts and contributions 4,108,371
Endowment income 1,172,820
Other operating revenues 527,705 535,313
Total Operating Revenue 12,027,676 9,441,493
Expenses
Operating Expenses
Instruction 16,824,930
Public service 1,718,156 270,300
Academic support 24,562,991 6,856,826
Student services 618,125
Institutional support 7,942,474 707,138
Operation and maintenance 2,040,167
Scholarships and fellowships
Auxiliary enterprises
Fundraising 768,595
Other expenses
Total Operating Expenses (Note 12) 53,706,843 8,602,859
Operating Income (Loss) (41,679,167) 838,634
Nonoperating Revenues(Expenses)
State appropriations (Note 13) 46,726,004
Local appropriations
Grants and gifts 1,375,196
Investment income 95,036
Interest on capital asset related debt (1,063,861)
Other nonoperating revenue (expense) 5,064,601
Net Nonoperating Revenue 52,101,940 95,036
Income before other revenues, expenses
gains (losses) 10,422,773 933,670
Capital appropriations-state (Note 20) 39,760,210
Capital appropriations-local
Capital gifts, grants and contracts 1,885,265
Additions to permanent and term endowments 302,500
Increase (Decrease) in Net Position 52,068,248 1,236,170
Net Position
Net Position beginning of year (Note 1-V) 39,254,558 15,213,715
Net Position end of year 91,322,806 16,449,885
The accompanying Notes to the Financial Statements are an integral part of this statement.
233
Virginia Community College System
System Office
Statement of Cash Flows
For the Year Ended June 30, 2025
System Office
Cash flows from operating activities:
Tuition and fees
Grants and contracts 11,499,971
Payments to suppliers and others (11,040,104)
Payments for employee wages (23,363,533)
Payments for employee fringes and pension benefits (9,024,499)
Payment for scholarships
Payments for utilities
Sales and services of education department
Auxiliary
Custodial receipts 433,831
Custodial disbursements (579,090)
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 527,705
Net cash used by operating activities (31,545,719)
Cash flows from non-capital financing activities:
State appropriations 46,726,004
Local appropriations
Grants and gifts 1,375,196
Borrowings
Loan repayments
Other non-operating revenue(expense) 9,416,314
Net cash provided (used) by non-capital financing activities 57,517,514
Cash flows from capital and related financing activities:
Capital appropriations-state 5,390,894
Capital appropriations-local
Capital grants and gifts 1,885,265
Purchase capital assets 12,326,476
Proceeds from sale of capital assets
Debt interest payments (1,974,716)
Debt principal payments (6,346,412)
Net cash provided (used) by capital financing activities 11,281,507
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income
Net cash provided (used) by investing activities
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 37,253,302
Cash and cash equivalents, beginning of year 19,031,306
Cash and cash equivalents, End of Year 56,284,608
234
Virginia Community College System
System Office
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (43,071,601)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 7,870,323
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net 966,641
Prepaid expenses and other 530,072
Post employment benefits asset (172,862)
Accrued compensation and leave (198,713)
Accounts payable and other 3,765,576
Unearned revenue
Deposits pending distribution
Custodial receipts(disbursements) (145,259)
Stafford and Direct Loan receipts(disbursements)
Pension liability (60,078)
Post employment benefits liability (284,989)
Deferred inflows of resources related to pensions and post employment benefits (68,567)
Deferred outlflows of resources related to pensions and post employment benefits (676,262)
Net cash used in operating activities (31,545,719)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 56,284,608
Less: Securities Lending Cash Equivalents
Cash and cash equivalents end of year 56,284,608
Noncash transactions
VRS Special Revenue Allocation 133,917
The accompanying Notes to the Financial Statements are an integral part of this statement.
235
Virginia Community College System
Shared Services Center
Statement of Net Position
As of June 30, 2025
Shared
Services
Center
Assets
Current Assets
Cash and cash equivalents (Note 2) 138,604
Appropriation available
Short term investments (Note 2)
Accounts receivable, net (Note 3)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Due from colleges
Interest receivable
Prepaid expenses 442,920
Inventories 24,141
Notes receivable, net (Note 3)
Total Current Assets 605,665
Noncurrent Assets
Restricted cash and cash equivalents (Note 2)
Prepaid expenses
Endowment cash and cash equivalents (Note 2)
Appropriation available
Endowment investments (Note 2)
Other long-term investments (Note 2)
Accounts receivable, net (Note 3)
Investments in real estate (Note 2)
Pledges receivable (Note 3)
Due from commonwealth (Note 4)
Notes receivable, net (Note 3)
Post employment benefit assets (Note 18) 388,542
Non-depreciable capital assets, net (Note 5)
Depreciable capital assets, net (Note 5) 812,585
Total Noncurrent Assets 1,201,127
Total Assets 1,806,792
Deferred Outflows of Resources (Note 8) 2,162,042
Total Assets and Deferred Outflows of Resources 3,968,834
Liabilities
Current Liabilities
Accounts and retainage payable (Note 6) 155,868
Accrued payroll expense 598,937
Unearned revenue
Long-term liabilities-current portion (Note 9) 696,108
Securities lending obligation
Post employment benefit obligations (Note 9) 34,223
Due to colleges
Deposits
Total Current Liabilities 1,485,136
236
Virginia Community College System
Shared Services Center
Statement of Net Position
As of June 30, 2025
Shared
Services
Center
Noncurrent Liabilities
Unearned revenue
Long-term liabilities (Note 9) 464,671
Due to federal government (Note 9)
Pension and post employment benefit obligations (Note 9) 6,247,764
Total Noncurrent Liabilities 6,712,435
Total Liabilities 8,197,571
Deferred Inflows of Resources (Note 8) 1,104,520
Total Liabilities and Deferred Inflows of Resources 9,302,091
Net Position
Net investment in capital assets 285,866
Restricted for:
Nonexpendable
Expendable 388,542
Unrestricted (6,007,665)
Total Net Position (5,333,257)
The accompanying Notes to the Financial Statements are an integral
part of this statement.
237
Virginia Community College System
Shared Services Center
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended June 30, 2025
Shared
Services
Revenues Center
Operating Revenue
Tuition and fees (net of scholarship allowance of $0)
Federal grants and contracts
State and local grants
Nongovernmental grants
Sales/services of education department
Auxiliary enterprises (net of scholarship allowance of $0)
Gifts and contributions
Endowment income
Other operating revenues 285,819
Total Operating Revenue 285,819
Expenses
Operating Expenses
Instruction 6,826
Public service
Academic support
Student services
Institutional support 10,417,065
Operation and maintenance 868,041
Scholarships and fellowships
Auxiliary enterprises
Fundraising
Other expenses
Total Operating Expenses (Note 12) 11,291,932
Operating Income (Loss) (11,006,113)
Nonoperating Revenues(Expenses)
State appropriations (Note 13) (285,819)
Local appropriations
Grants and gifts
Investment income
Interest on capital asset related debt (37,394)
Other nonoperating revenue (expense) 11,903,117
Net Nonoperating Revenue 11,579,904
Income before other revenues, expenses
gains (losses) 573,791
Capital appropriations-state (Note 20)
Capital appropriations-local
Capital gifts, grants and contracts
Additions to permanent and term endowments
Increase (Decrease) in Net Position 573,791
Net Position
Net Position beginning of year (Note 1-V) (5,907,048)
Net Position end of year (5,333,257)
The accompanying Notes to the Financial Statements are an integral part of this
statement.
238
Virginia Community College System
Shared Services Center
Statement of Cash Flows
For the Year Ended June 30, 2025
Shared Services
Cash flows from operating activities:
Tuition and fees
Grants and contracts
Payments to suppliers and others (1,086,743)
Payments for employee wages (6,801,017)
Payments for employee fringes and pension benefits (3,129,061)
Payment for scholarships
Payments for utilities (78,026)
Sales and services of education department
Auxiliary
Custodial receipts
Custodial disbursements
PLUS, Stafford and Direct Lending loan receipts
PLUS, Stafford and Direct Lending loan disbursements
Loans issued to students
Loans collected from students
Other 285,819
Net cash used by operating activities (10,809,028)
Cash flows from non-capital financing activities:
State appropriations (285,819)
Local appropriations
Grants and gifts
Borrowings
Loan repayments
Other non-operating revenue(expense) 11,903,117
Net cash provided (used) by non-capital financing activities 11,617,298
Cash flows from capital and related financing activities:
Capital appropriations-state
Capital appropriations-local
Capital grants and gifts
Purchase capital assets (246,831)
Proceeds from sale of capital assets
Debt interest payments (27,908)
Debt principal payments (403,738)
Net cash provided (used) by capital financing activities (678,477)
Cash flows from investing activities:
Purchases of investments
Sale of investments
Investment income
Net cash provided (used) by investing activities
Net increase (decrease) in net position
Net increase (decrease) in cash and cash equivalents 129,793
Cash and cash equivalents, beginning of year 8,811
Cash and cash equivalents, End of Year 138,604
239
Virginia Community College System
Shared Services Center
Statement of Cash Flows
For the Year Ended June 30, 2025
Reconciliation of operating income (loss) to net cash used in operating activities:
Operating income (loss) (11,006,113)
Adjustment to reconcile operating income (loss) to net cash used in operating activities:
Depreciation expense 591,651
Changes in assets, deferred outflows, liabilities and deferred inflows:
Appropriation available and receivables, net
Prepaid expenses and other (304,684)
Post employment benefits asset (39,118)
Accrued compensation and leave 82,737
Accounts payable and other 88,840
Unearned revenue
Deposits pending distribution
Custodial receipts(disbursements)
Stafford and Direct Loan receipts(disbursements)
Pension liability (113,868)
Post employment benefits liability (78,550)
Deferred inflows of resources related to pensions and post employment benefits (4,308)
Deferred outlflows of resources related to pensions and post employment benefits (25,615)
Net cash used in operating activities (10,809,028)
Reconciliation of cash and cash equivalents:
Cash and cash equivalents per Statement of Net Position 138,604
Less: Securities Lending Cash Equivalents
Cash and cash equivalents end of year 138,604
Noncash transactions
VRS Special Revenue Allocation 37,129
Capital assets acquired through the assumption of a liability 118,578
The accompanying Notes to the Financial Statements are an integral part of this statement.
240
ESTIMATED
DESIGN CONSTRUCTION CONSTRUCTION
AGENCY PROJECT BIENNIUM (* FIRST- APPROPRIATION OBLIGATED DATE CO-2 PERCENT CONSTRUCTION PERCENT COMPLETION
CODE CODE AGENCY NAME APPROPRIATION OR PROJECT TITLE FUNDED) AMOUNT AMOUNT APPROVED COMPLETE CONTRACT COMPLETE DATE CABINET SECRETARY
260 17699 VIRGINIA COMMUNITY COLLEGE SYSTEM VCCS: ADA IMPROVEMENTS * 2008-2010 2,875,070 2,798,392 10/2008 100% 2,000,394 varies 12/2025 EDUCATION
VCCS - NON - GENERAL FUND CAPITAL OUTLAY BLANKET
260 17905 VIRGINIA COMMUNITY COLLEGE SYSTEM AUTHORIZATION * 2011 49,460,911 41,209,631 02/2025 varies varies varies varies EDUCATION
260 18087 VIRGINIA COMMUNITY COLLEGE SYSTEM NVCC - RENOVATE GODWIN BUILDING - ANNANDALE * 2013 2,373,000 2,373,000 01/2017 18% $0 0% 07/2027 EDUCATION
260 18162 VIRGINIA COMMUNITY COLLEGE SYSTEM NVCC - RENOVATE SEEFELDT BUILDING - WOODBRIDGE * 2016 71,593,286 64,495,569 01/2017 100% 50,423,819 100% 07/2025 EDUCATION
260 18163 VIRGINIA COMMUNITY COLLEGE SYSTEM NVCC - RENOVATE HOWSMAN BUILDING - MANASSAS * 2016 69,150,000 62,936,232 01/2017 100% 56,902,902 4% 03/2028 EDUCATION
JTCC - RENOVATE BIRD HALL AND RENOVATE/EXPAND NICHOLAS
260 18209 VIRGINIA COMMUNITY COLLEGE SYSTEM CENTER * 2016 35,493,000 35,058,346 11/2016 100% 28,255,282 100% 10/2024 EDUCATION
260 18279 VIRGINIA COMMUNITY COLLEGE SYSTEM VCCS - IMPROVE LIFE SAFETY AND SECURITY SYSTEMWIDE * 2016 7,463,720 5,464,436 01/2017 67% SEE TAB 55% 09/2026 EDUCATION
260 18280 VIRGINIA COMMUNITY COLLEGE SYSTEM VCCS - REPAIR OR REPLACE MAJOR MECHANICAL SYSTEMS * 2016 19,840,000 5,224,322 01/2017 94% SEE TAB 12% 01/2027 EDUCATION
260 18340 VIRGINIA COMMUNITY COLLEGE SYSTEM GCC - REPLACE FRENCH SLAUGHTER BUILDING *2016 3,853,842 3,806,358 02/2018 95% $0 0% 05/2028 EDUCATION
260 18341 VIRGINIA COMMUNITY COLLEGE SYSTEM TNCC - REPLACE DIGGS - MOORE - HARRISON COMPLEX *2016 48,491,250 4,251,312 10/2017 75% $0 0% 01/2028 EDUCATION
260 18342 VIRGINIA COMMUNITY COLLEGE SYSTEM PVCC - CONSTRUCTION ADVANCED TECHNOLOGY CENTER *2016 34,168,856 33,668,294 02/2018 100% $26,030,390 100% 08/2025 EDUCATION
260 18343 VIRGINIA COMMUNITY COLLEGE SYSTEM CVCC - RENOVATE AMHERST/CAMPBELL HALL *2016 1,293,086 1,293,086 02/2018 65% $0 0% 04/2028 EDUCATION
260 18483 VIRGINIA COMMUNITY COLLEGE SYSTEM VCCS: RE-ROOF AND HVAC-MULTIPLE BUILDINGS *2020-2022 16,000,000 $5,359,236.00 10/2021 91% SEE TAB 29% 06/2027 EDUCATION
PDCCC - REPLACE HVAC - ADMINISTRATION BUILDING - FRANKLIN
260 18501 VIRGINIA COMMUNITY COLLEGE SYSTEM CAMPUS *2020-2022 2,200,000 1,997,086 06/2021 100% $1,674,000 95% 08/2025 EDUCATION
260 18554 VIRGINIA COMMUNITY COLLEGE SYSTEM VCCS: TECH TALENT RENOVATIONS *2020-2022 2,500,000 1,266,084 03/2022 N/A N/A N/A 12/2024 EDUCATION
260 18572 VIRGINIA COMMUNITY COLLEGE SYSTEM NVCC - CONSTRUCTION OF TRADES BUILDING *2021 19,000,000 18,250,519 09/2021 100% $16,293,058 14% 11/2026 EDUCATION
260 18573 VIRGINIA COMMUNITY COLLEGE SYSTEM NVCC - EXPAND MEDICAL EDUCATION CAMPUS *2021 35,000,000 31,587,117 09/2021 100% $27,337,822 0% 03/2026 EDUCATION
VPCC - RECONSTRUCTION TEMPLIN HALL AUDITORIUM, HAMPTON
260 18656 VIRGINIA COMMUNITY COLLEGE SYSTEM CAMPUS *2022 28,323,000 18,450,574 05/2023 100% $16,958,322 95% 12/2025 EDUCATION
260 18721 VIRGINIA COMMUNITY COLLEGE SYSTEM IMPROVEMENTS: SYSTEMWIDE SMALL RENOVATIONS 2024** 24,000,000 1,299,290 10/2024 51% SEE TAB 0% 01/2027 EDUCATION
260 18687 VIRGINIA COMMUNITY COLLEGE SYSTEM SWVCC- REPLACE BUCHANAN & TAZEWELL HALLS 2024 250,000 186,497 02/2025 0% $0 0% 07/2030 EDUCATION
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
In accordance with Chapter 725, 2025 Acts of Assembly, the Virginia Community College System
(VCCS) offers the following in-depth summary of workforce development and noncredit
instruction during Fiscal Year 2025 (July 1, 2024-June 30, 2025).
I. Introduction
Virginia’s Community Colleges provide a variety of workforce and noncredit activities to
support employers, incumbent workers, and Virginia’s emerging workforce. These activities
include offering career pathway programs that assist individuals in transitioning to employment
after training is provided, open enrollment courses (offered to the general public) that allow
employees or potential employees to upgrade their skills quickly and at low cost, and
customized training, which provides the opportunity for employers to develop a course of study
for employees that meets specific training needs.
II. Workforce and Noncredit Instruction at Community Colleges
Workforce Credential Grants
Recognizing the importance of creating and sustaining a demand-driven supply of credentialed
workers for high-demand occupations in the Commonwealth, state lawmakers created a grant
program in 2016 to make specific workforce training programs much more affordable for
Virginians. The New Economy Workforce Credential Grant, which allocated $23.75 million for
Fiscal Year 2025, reduces the student cost of approved workforce credential training programs
by two-thirds, so that more people can access this type of training and the high-demand jobs
that stem from it. The grant program covers community college training in 12 high-demand
occupational fields that were identified by the Virginia Board of Workforce Development.
With the Workforce Credentials Grant, students are eligible for up to $4,000 in grant money to
help pay for the cost of credential training. Most programs take between six and twelve weeks
and are built so Virginians can get their education while they work. At Virginia’s Community
Colleges, students can gain the skills that they need quickly and affordably, while creating more
opportunities for their future.
Community colleges provide training that prepares individuals to earn an industry-recognized
credential or licensure. Programs focus on a wide variety of high-demand fields, such as
business and customer service, education, healthcare, information technology, logistics and
transportation, skilled trades and infrastructure, welding, and manufacturing. Courses include
training for certified nursing assistants, pharmacy technicians, and medical coding and billing
specialists; trades-related occupations, such as electricians, HVAC technicians, and welders;
advanced manufacturing, such as Manufacturing Technician 1; and information technology,
including cybersecurity and CompTIA certifications. During Fiscal Year 2025, Virginia’s
Community Colleges provided noncredit training that led to 14,646 high-demand industry
credentials.
1
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
Noncredit Open Enrollment and Customized Training
VCCS colleges design and offer training programs that meet the community and employer-
specific workforce needs through delivery of noncredit open enrollment and customized
training. During Fiscal Year 2025, colleges provided 29,562 individuals with noncredit workforce
training. This training included courses that provide new skills for high-demand occupations, as
well as skills upgrades, such as training in information technology, transportation, and project
management. Selection of courses is driven by the specific needs of local employers and the
short-term workforce needs of individual community members.
Employers are another key customer of community college workforce services, whether
through direct contracts or through partnerships with economic development and community
agencies that assist existing or potential employers. Last year, colleges served 731 employers in
Virginia through noncredit training.
Workforce coordinators at Virginia’s Community Colleges consist of administrative and
professional faculty, as well as classified staff. Each coordinator is evaluated annually using
established Virginia Community College System and Virginia Department of Human Resources
performance plans and procedures.
III. Institutes of Excellence
Institutes of Excellence, Fiscal Year 2025
During Fiscal Year 2025, Virginia’s community colleges received funding through the Institutes
of Excellence (IE) program and other grant initiatives to develop and enhance workforce
training programs that address high-demand, high-growth industry needs identified by today’s
employers. Each college focused on key industry sectors and created pathways leading to
education and training, credential attainment, employment, and credit for prior learning.
A total of $415,465 in IE funds was allocated to community colleges, primarily to support
equipment purchases that expand workforce training capacity.
• Southside Virginia Community College (SVCC) received $244,984 to expand its Power
Line Worker and Commercial Driver’s License (CDL) programs. The funds were used to
purchase an additional tractor and two trailers to meet growing student demand,
increasing the CDL program’s capacity by approximately 50 students per year.
• $104,037 in IE funds supported the Building Pathways to Infrastructure Jobs (BPI) Grant.
These funds were used to purchase equipment, materials, certifications, and licenses for
launching the Fiber Optic Splicing program at Germanna, Piedmont, and Laurel Ridge
Community Colleges. This investment provides each college with the capacity to serve
approximately 40 students per year and prepares participants for infrastructure-related
careers, particularly in the development of data centers across the Commonwealth. The
funds also supported professional development for workforce faculty and staff.
2
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
• The remaining $66,444 in IE funds were allocated to Laurel Ridge Community College to
establish its Power Line Worker program. The program launched in Fall 2025 with an
initial cohort of 15 students and a projected annual capacity of 60 students.
IV. Specialized Workforce Centers
Expanding Services through Specialized Workforce Centers
In addition to the Institutes of Excellence, individuals and employers were served by the four
specialty workforce centers located at Central Virginia, Danville, Paul D. Camp, and Virginia
Peninsula Community Colleges. These colleges improved and expanded training and developed
new programs through noncredit workforce-related instruction with emphasis on student
attainment of industry credentials. The allocation of state funds to these specialized workforce
centers requires a 25 percent match from each college. Matching funds were provided by local
and county governments, regional foundations, and federal grants, demonstrating the
investment that these groups have in the workforce services provided by the centers.
Workforce projects and services at each of these centers are described below.
Central Virginia Community College (CVCC) had more than 1,050 enrollments in FastForward
programs in Fiscal Year 2025. The following is a summary of noncredit workforce programs
impacted by this appropriation at CVCC:
• Skilled trades program enrollment in National Center for Construction Education and
Research (NCCER) CORE, Electrical Levels 1 - 4 programs, HVAC 1 - 4 programs, Plumbing
Levels 1 - 4 programs, and the Heavy Equipment Operator 1 program offered all levels of
NCCER certifications.
CVCC became a registered apprenticeship intermediary through the Department of
Workforce Development and Advancement. Several companies have become sponsors
under CVCC, and workforce programs continue to provide related technical instruction
(RTI) for other registered apprentices.
• Healthcare programs include Phlebotomy Technician and Certified Clinical Medical
Assistant (CCMA) offered with National Healthcareer Association (NHA) credentials.
Additionally, the partnership has continued with the local hospital system (Centra) to
offer Certified Nursing Assistant (CNA) with Virginia Board of Nursing credentials.
• Commercial Driver’s License (CDL) programs operated on campus for a third year during
FY 2025, resulting in 96 Class A credentialed students. CVCC worked with the third-party
vendor, Ancora, with a fleet of four trucks to meet program demand for both full-time
and part-time programs. A Commercial Driver’s License Class B program is also offered.
• Emergency Medical Technician (EMT), Advanced EMT (AEMT) and Paramedic programs
3
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
were also held and offered valuable credentials from the National Registry of
Emergency Medical Technicians (NREMT) and the Virginia Office of Emergency Medical
Services.
CVCC provided training to employees of Amherst County, Bedford County, Campbell County
and Lynchburg City governments. College representatives worked with local workforce and
economic development organizations to promote programs and customized training for
employers. Several companies toured programs and met with students to discuss employment
opportunities. The following employers enrolled students in FastForward programs to meet the
needs of related technical instruction (RTI) for registered apprenticeship:
• Southern Air
• A&L Electrical
• Moore’s Electric
• Anchor Electric
• Centra
• Georgia Pacific
• John Mettle Electric, LLC
• U.S. Pipe
Career exploration summer camps were held for local middle and high school level students.
CVCC continued to support both the transition program and customized classes for special
needs students related to training and career readiness.
Danville Community College (DCC) delivered comprehensive workforce noncredit training to
business and industry leaders across the region. The college trained 290 students across
multiple high-demand fields, representing a 12 percent increase in enrollment over the
previous year.
Training Programs and Enrollment:
• Commercial Driver's License Class A: 44 students
• CompTIA A+: 58 students
• CompTIA Network+: 45 students
• CompTIA Security+: 35 students
• HMCA Clinical Medical Assistant (NHA): 19 students
• Emergency Medical Technician (VOEMS): 19 students
• Advanced Emergency Medical Technician: 13 students
• Certified Nurse Aide (CNA): 12 students
• Industrial Maintenance Electrical and Instrumentation - Level 1: 12 students
• Industrial Maintenance Electrical and Instrumentation - Level 2: 8 students
• Medication Aide: 5 students
• Senior Professional in Human Resources: 4 students
4
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
• Electrical - Level 1: 3 students
• HVAC Tradesman License Renewal: 3 students
Employer Partnerships: DCC served numerous employers throughout the year through signed
apprenticeships, customized training programs, employer cohorts, and short-term training
opportunities. Partner organizations included VDOT, First Piedmont, City of Danville, EPL
America LLC (Essel Propack America LLC), Hitachi, Tyson Foods, Kickback Jacks, JTI, Rogers
Heating & Cooling, and KTL.
Strategic Collaborations: The college established strong partnerships with the City of Danville,
VDOT, First Piedmont, Virginia Works, Adult Education, and the Southern Virginia Higher
Education Center to expand workforce development reach and impact.
Apprenticeship Program: DCC became an intermediary for the state apprenticeship program,
working directly with local industries to implement apprenticeship opportunities within their
organizations. The college has signed apprenticeship agreements with KTL and Rogers Heating
& Cooling.
New Program Launch: In October, DCC launched its Diesel Technician Training program, which
provides students with five ASE Entry-Level certifications upon completion:
• Medium/Heavy Truck Brakes
• Medium/Heavy Truck Diesel Engines
• Medium/Heavy Truck Electrical/Electronic Systems
• Medium/Heavy Truck Inspection, Maintenance & Minor Repair
• Medium/Heavy Truck Suspension & Steering
Paul D. Camp Community College (CAMP) focused on the following noncredit training
programs leading to employment and employee development for Fiscal Year 2025. Camp
enrolled a total of 658 students in FastForward programs.
• The National Center for Construction Education and Research (NCCER) Core and
Industrial Maintenance/Electrical and Instrumentation (Levels 2-4) programs continue
to be offered in the fall and spring terms. In FY 2025, Camp collaborated with Day &
Zimmerman to create the Nuclear Workforce Training Program that consists of
prerequisite training to include NCCER Core. Students who successfully completed the
training earned the NCCER Core Industry credential and were evaluated to work with
Surry Nuclear Power for an outage assignment job offer. 24 students were trained in
NCCER Core with a 100 percent completion and credential rate.
• In FY 2025, the Marine Welder pre-hire program, in partnership with Virginia Ship Repair
Association and HII- Newport News Shipbuilding, located at the Suffolk Campus,
enrolled a total of 88 students with a 97 percent completion and 96 percent credential
rate.
5
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
• The Outside Machinist pre-hire program held at the Suffolk campus was offered in
partnership with the Virginia Ship Repair Association and HII- Newport News
Shipbuilding. In FY 2025, 48 students were served with 96 percent completion and
credential rates.
• The Fast-Track Healthcare program, which offers two program options that include
three certifications (Clinical Medical Assistant, Phlebotomy, and EKG Technician) or
(Patient Care Technician, Phlebotomy and EKG Technician), is a hybrid class with small
groups meeting in person for hands-on labs at the newly renovated Health Professions
building in Franklin. The Healthcare program enrolled a total of 165 students with a
completion rate of 87 percent.
• Blended credit and noncredit in-demand IT programs are offered for CompTIA A+,
Network+, and Security+. In FY 2024, Camp served 10 noncredit students in the
blended CompTIA A+ Network+, and Security+. with 6 completers.
• The Truck Driver Training program (Class A and Class B Commercial Driver’s License)
at the Suffolk campus offers 2 classes per month on weekdays and weekends. In FY
2025, 208 CDL A and 43 CDL B students were served, with 89 percent of CLD A and
93 percent of CDL B students successfully completing the class.
• Backflow Prevention Certification served 10 students with a 100 percent
completion rate.
• Heavy Equipment Operator Level 1 and Rigging and Signaling Person with NCCER
Core were offered in FY 2025 with 10 enrolled in the program and 80 percent
completion rates.
• Customized training is offered to local employers meeting their needs for Forklift
Operators, Logistics and Warehousing, Excel, and NCCER Core fundamentals.
These include the development of soft skills modules for employers and students.
Companies that contracted with Camp for customized trainings include Apex Case
Management, Day & Zimmerman, Deerfield Correctional Center, and ST Tissue.
Virginia Peninsula Community College (VPCC) is a founding member of the Community College
Workforce Cooperative (CCWC) along with Tidewater Community College and Paul D. Camp
Community College. The CCWC was designed to meet the large-scale workforce demands in
Hampton Roads with a primary focus in the shipbuilding and ship repair industries. Critical
partners include the Hampton Roads Workforce Council, the Virginia Ship Repair Association,
and Newport News Shipbuilding.
The Marine Trades Training Program (MTT), delivered by the partner colleges since 2017, has
6
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
enrolled over 4,000 participants and remains a cornerstone of the Regional Maritime Training
System, facilitated by the Hampton Roads Workforce Council. As part of the MTT program,
VPCC delivered Welding and Marine Electrical training to 223 students in FY 2025. VPCC also
delivered welding training aligned with American Welding Society (AWS) credentials to include
SMAW, FCAW, GMAW, GTAW, and Certified Welder. Enrollments in AWS courses totaled 392 in
FY 2025. VPCC’s AWS Accredited Testing Facility supports both student testing and industry
partners. The following is a summary of other noncredit workforce programs impacted by this
appropriation at VPCC:
• The building and construction trades - including Carpentry, Electrical, Facilities
Maintenance, and HVAC - remain high-demand programs and are delivered on the
Hampton Campus and at the Toano Trades Center.
• Allied health programs enrolled 409 students in FY 2025, representing nearly 30 percent
of VPCC’s total workforce enrollment. Programs included Clinical Medical Assistant
(CMA), Certified Medical Administrative Assistant (CMAA), EKG Technician, Phlebotomy
Technician, Nurse Aide Education (CNA), and Medical Coding and Billing. These
programs are available at VPCC’s Hampton campus, the Historical Triangle campus, and
the college’s Southeast Newport News Center.
• VPCC remained a valuable resource in providing Commercial Driver’s License training
and preparation. VPCC trained 145 students in FY 2025.
• VPCC hosted multiple community and industry engagement events throughout FY 2025
to benefit local employers, students, and residents. These included the Regional
Apprenticeship Summit (in partnership with the Hampton Roads Workforce Council),
Manufacturing Day (in partnership with Hampton City Schools), Manufacturing Days (in
partnership with Williamsburg-James City County Public Schools), a Celebrate
Healthcare event supporting displaced local workers in collaboration with regional
agencies and nonprofits, and a Healthcare Focus event featuring a keynote address by a
local healthcare provider CEO.
• VPCC continued to serve individuals and businesses with customized training options to
include a focus on leadership development, communication strategies, and career skill
development.
• VPCC continued support for the Virginia Career Works Center located in the Peninsula
Workforce Development Center (PWDC), representing a partnership among four other
state and local agencies sharing staff and facility costs and providing career search
services for jobseekers. VPCC contribution includes supporting a 0.5 position to support
Center operations. A local branch of the Small Business Development Center also
operates from the PWDC, providing engagement opportunities for both VPCC students
and faculty.
7
VCCS Fiscal Year 2025 Workforce Development and Noncredit Instruction Report
• VPCC partnered with the Newport News Economic Development Authority to construct
a new Newport News Trades Center scheduled to open in February 2026. The facility
will initially deliver Welding, Structural Fitting (a new program), and Marine Electrical in
support of the Maritime industry, with additional programs planned to support local
demand. The new facility will also house Electrical, Facilities Maintenance, HVAC, and
Plumbing in support of the Building and Construction industry
8
File and source
- File
- 2025-RD763.pdf
- Size
- 2,256,493 bytes
- SHA-256
- 9ba5a9b1e94652d26be42eea9375f76908a1e1125ddcba65fb499d437a92a75d
- Our copy
- 2025-RD763.pdf
- Original
- No public link identified.