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Published by hlat, 2021-04-22 12:11:37

Budget Meeting Report - May 3, 2021

Budget Meeting Report - May 3, 2021

Keywords: Budget Meeting Report

Virginia Tech Services, Inc.
Dave Wilson

Executive Director

Budget Review
Monday, May 3, 2021

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8 Follett Guarantee Negotiations

Financial Summary for the
Twelve Months Ending June 30, 2021

Actual Actual Actual Actual Actual
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

Ordinary Income/Expense 15,299 23,636 30,637 39,417 26,278
Expense: 2,901 2,928 3,808 4,890 3,260
500-001 · Personnel Expenses 1,721 1,727 2,316 2,917 1,944
500-000 · Salaried & Classified Expense
510-000 · Retirement Contributions - - - - -
520-000 · FICA Expense 147 147 670 145 153
530-000 · State Unempl. Insurance Expense 116 116 722 116 116
540-000 · Life Insurance Expense (1,716) 3,411 4,864 3,665 4,264
550-000 · Disability Insurance Expense - - - - -
560-000 · Health Insurance Expense - - - - -
570-000 · Workman's Compensation
580-000 · Leave Balance Expense 18,468 31,965 43,017 51,150 36,015

Total 500-001 · Personnel Expenses

600-001 · Other Expenses
600-000 · Utilities Expense
610-000 · Repairs & Maintenance Expense 5,364 5,764 6,521 4,439 7,154
620-000 · Depreciation Expense 6,693 10,533 3,621 4,823 2,528
630-000 · Vehicle Expense 15,521 15,521 15,430 15,377 15,377
640-000 · Rent Expense
650-000 · Telephone Expense 123 - - - -
660-000 · Insurance Expense 74,038 74,038 74,038 73,104 74,133
670-000 · Taxes & Licenses 5,225 5,226 5,228 23,067 (11,059)
680-000 · Supplies Expense 37,560
690-000 · Dues & Subscriptions - - - -
700-000 · Advertising Expense 145 - - 939 -
720-000 · Education 338 98 171 69 432
740-000 · Cash Long/ Short 2,529 69 69 191 1,061
750-000 · Credit Card Discount Fee - - - - -
760-000 · Miscellaneous Expense - - - - -
- - - - -
760-970 · Wells Fargo Service Fee - - - - -
· Coupon 7,065 5,438 867 366 272
305 445 454 462 441
780-000 · Travel & Entertainment Expense - - - - -
782-000 · Corp Food & Entertainment - - - - -
- - - - -
· Freight In - - - - -
· Freight Out - - - - -
810-000 · Royalty - - - - -
810-000 · Postage Expense - 63 - 110
820-000 · Professional Fees Expense 2,003 35,753 23,728 8
830-000 · Interest - - - 10,804 3
840-000 · Late Payment - - - -
- - 754 - -
850-000 · Hokie Stone Expense - 1,269
156,909 152,948 130,881 59
Total 600-001 · Other Expenses 91,721
175,377 184,913 173,898 133,708
Total Expense 127,736
(175,377) (184,913) (173,898) 184,858
Net Ordinary Income (127,736)
(184,858)

Other Income/Expense 3,215 3,357 13,508 13,100 10,618
Other Income 5,833 5,833 5,833 5,833 5,833
950-920 Other Income - Soft Drink Vending 112,863 31,667
950-921 Other Income - Snack Vending Canteen 1,482 - - - (152)
950-922 Other Income - Laundry Vending (126) (137) (106)
950-923 Other Income - CRC Vending Kwik Kafe - 800 400 - 400
950-951 Other Income - ATM Space 300 1,478 621 - 24
950-953 Other Income - Miscellaneous - - - 950 -
950-954 Other Income - Hokie Stone - - - - -
950-955 Other Income - Bad Debt Recovery - - - - -
960-000 Interest Income - Checking Acct. 10,693 6,178 3,337 1,613 (42)
961-000 Interest Income - Investments 170,886 345,346 101,229 86,749 80,081
970-000 Commissions - Follett - 183 21,865 - 12,554
972-000 Other Income - Reimbursements 8,333 8,333 8,333 8,333 8,333
974-000 Execution Payment - Follett
313,605 371,382 154,989 116,472 149,317
Total Other Income
138,228 186,469 (18,909) (68,386) 21,581
Net Income

Actual Actual Actual Projected Projected Projected Projected Actual/Projected
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 July '20 - June '21

26,809 26,278 26,278 26,278 39,417 26,278 27,174 333,779
3,260 3,260 3,260 3,260 4,890 3,260 3,366 42,343
1,995 1,957 1,997 1,957 3,015 2,010 2,079 25,635

- 26 10 70 6 4 4 120
153 153 153 152 142 95 98 2,208
116 116 116 116 271 181 187 2,289
4,932 3,547 4,078 3,547 4,778 3,185 3,185 41,740
- - - - 67 44 44
- - - - 104 69 69 155
242
37,265 35,337 35,892 35,380 52,690 35,126 36,206
448,511
6,301 6,590 8,608 6,688 3,350 4,338 4,279
3,942 2,005 8,736 3,353 5,349 5,349 5,349 69,396
15,377 15,377 15,377 15,377 15,362 15,338 15,338 62,281
184,772
720 20 253 - 308 308 308 2,040
74,133 74,133 73,452 69,273 73,808 73,808 73,808 881,765
) 5,687 5,679 3,179 4,178 4,177 4,500 4,500 59,587
37,560
- - - - - - - 3,369
- 839 - - 482 482 482 3,245
366 225 194 449 449 449 5,749
121 249 36 5 345 345 345
- - - 389 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
194 831 322 - 1,000 1,000 1,000 18,911
432 268 288 556 300 300 300 4,286
- - - 291 - - - -
- 12 - - - - - 12
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 51 51 51 412
2 6 70 7,306 7,306 7,306 103,935
3 378 4,034 5,311 - - - -
- - - - - - -
- - - - - - - 8,977
826 4,590 - 1,050
429 1,446,297

108,102 111,198 114,914 106,541 112,287 113,574 113,515 1,894,808

145,367 146,535 150,806 141,921 164,977 148,700 149,721 (1,894,808)

) (145,367) (146,535) (150,806) (141,921) (164,977) (148,700) (149,721)

7,086 8,981 10,791 14,420 11,000 9,000 225,000 330,076
5,833 5,833 69,996
5,833 5,833 5,833 5,833 5,833 31,666 31,666 366,196
-
31,667 31,667 31,667 31,667 31,666 - 5,200 346
400 500 9,600
) (152) (146) (169) (148) - 500 - 5,064
- - 2,340
400 400 400 800 400 - -
- 3,000 -
- - 1,141 - 500 3,000 64,491 -
93,864 5,837 35,271
- - - 1,390 - 5,837 8,333 1,341,223
8,333 74,326
----- 349,860 99,996
158,433
----- 200,139 2,334,434
9,733
) 3,673 3,529 1,506 (4,216) 3,000 439,626

59,657 128,623 49,317 60,018 100,962

11,407 5,979 4,827 - 5,837

8,333 8,333 8,333 8,333 8,333

127,904 193,199 113,646 118,097 167,531

(17,463) 46,664 (37,160) (23,824) 2,554

Financial Summary Comparison
Fiscal Year 2020-2021 Projected

vs
Fiscal Year 2019-2020 Actual

Projected Actual Comparison
July '20 - June '21 July '19 - June '20
(192,100)
Ordinary Income/Expense 333,779 525,879 (22,922)
Expense: 42,343 65,265 (17,031)
500-001 · Personnel Expenses 25,635 42,666
500-000 · Salaried & Classified Expense 29
510-000 · Retirement Contributions 120 91 418
520-000 · FICA Expense 2,208 1,790 121
530-000 · State Unempl. Insurance Expense 2,289 2,168 (133,194)
540-000 · Life Insurance Expense 41,740 174,934 155
550-000 · Disability Insurance Expense 10,037
560-000 · Health Insurance Expense 155 -
570-000 · Workman's Compensation 242 (9,795) (354,487)
580-000 · Leave Balance Expense
448,511 802,998 (43,122)
Total 500-001 · Personnel Expenses 2,620
69,396 112,518 1,356
600-001 · Other Expenses 62,281 59,661 (596)
600-000 · Utilities Expense 184,772 183,416 8,244
610-000 · Repairs & Maintenance Expense 2,040 2,636 (9,973)
620-000 · Depreciation Expense 881,765 873,521 (2,084)
630-000 · Vehicle Expense 59,587 69,560
640-000 · Rent Expense 37,560 39,644 (48,384)
650-000 · Telephone Expense 3,369 51,753 (2,422)
660-000 · Insurance Expense 3,245 5,667 1,867
670-000 · Taxes & Licenses 5,749 3,882 (2,447)
680-000 · Supplies Expense 2,447
690-000 · Dues & Subscriptions - 0
700-000 · Advertising Expense - - 0
720-000 · Education - - (506)
740-000 · Cash Long/ Short - 506 (124,836)
750-000 · Credit Card Discount Fee 18,911 143,747 (1,335)
760-000 · Miscellaneous Expense 4,286 5,621 0
- - (819)
760-970 · Wells Fargo Service Fee 12 831 (1,550)
· Coupon - 1,550 0
- - 0
780-000 · Travel & Entertainment Expense - - 0
782-000 · Corp Food & Entertainment - - (76)
412 488 26,260
· Freight In 103,935 77,675 0
· Freight Out - - 0
810-000 · Royalty - - 8,977
810-000 · Postage Expense 8,977 -
820-000 · Professional Fees Expense (188,826)
830-000 · Interest 1,446,297 1,635,123
840-000 · Late Payment (543,313)
1,894,808 2,438,121
850-000 · Hokie Stone Expense 543,313
(1,894,808) (2,438,121)
Total 600-001 · Other Expenses (192,718)
(32,854)
Total Expense
(4)
Net Ordinary Income (638)
(5,200)
Other Income/Expense 330,076 522,794 (42,292)
Other Income 69,996 102,850 1,581
950-920 Other Income - Soft Drink Vending 366,196 366,200 (3,660)
950-921 Other Income - Snack Vending Canteen (668)
950-922 Other Income - Laundry Vending 346 984 (94,349)
950-923 Other Income - CRC Vending Kwik Kafe 9,600 14,800 (1,479,907)
950-951 Other Income - ATM Space 5,064 47,356 13,011
950-953 Other Income - Miscellaneous 2,340
950-954 Other Income - Hokie Stone 759 0
950-955 Other Income - Bad Debt Recovery - 3,660
960-000 Interest Income - Checking Acct. - (1,837,698)
961-000 Interest Income - Investments 35,271 668
970-000 Commissions - Follett 1,341,223 129,620 (1,294,385)
972-000 Other Income - Reimbursements 74,326 2,821,130
974-000 Execution Payment - Follett 99,996 61,315
99,996
Total Other Income 2,334,434
4,172,132
Net Income 439,626
1,734,011

Financial Comparison
Fiscal Year 2020-2021 vs Fiscal Year 2019-2020

Significant Variance Explanations

500-000 Salaried & Classified Expense Projected Actual Comparison
· Retirement of Previous Executive Director & Assistant Director. July '20 - June '21 July '19 - June '20 (192,100)
· Reduction in staff size to four (4) positions starting July 2020.
333,779 525,879
510-000 Retirement Contributions
· Retirement of Previous Executive Director & Assistant Director. 42,343 65,265 (22,922)
· Reduction in staff size to four (4) positions starting July 2020.
25,635 42,666 (17,031)
520-000 FICA Expense
· Retirement of Previous Executive Director & Assistant Director. 41,740 174,934 (133,194)
· Reduction in staff size to four (4) positions starting July 2020.
69,396 112,518 (43,122)
560-000 Health Insurance Expense 59,587 69,560 (9,973)
· Yearly Brown Edwards entry to adjust prepaid insurance to the correct balance at 6/30/2020. 3,369 51,753 (48,384)
The size of the adjustment for this time period is larger than usual due to the transition of 18,911
Virginia Tech Services, Inc. from a large number of employees down to our current level. 103,935 143,747 (124,836)
330,076
600-000 Utilities Expense 77,675 26,260
· Reduction in usage due to shortened or limited hours of retail operations.
522,794 (192,718)
650-000 Telephone Expense
· After transition, services were cancelled and/or switched to Follett (examples: Fax and Data Plans). 69,996 102,850 (32,854)
9,600 14,800 (5,200)
670-000 Taxes & Licenses 5,064 47,356 (42,292)
· A one-time payment in FY '20 to the IRS for pre-transition late filing of 2017 W-2s that occurred 35,271 129,620 (94,349)
in 2018. 1,341,223 2,821,130 (1,479,907)

760-000 Miscellaneous Expense
· Primarily a one-time expense for a program to provide payroll assistance to Follett for
Virginia Tech Services, Inc. Legacy Employees to prevent furloughs during COVID shutdown.

820-000 Professional Fees Expense
· Audit expense increase due to increased scope as a result of the transition of
Virginia Tech Services, Inc.'s organizational model.

950-920 Other Income - Soft Drink Vending
· Decline in vending sales due to COVID-19 impacts.
· Current renegotiation of Coke Contract with both the University and Virginia Tech Services, Inc.
This impacts payments of Sponsorship Fees, Annual Incentive Fee, and Minimum Guarantee.
Resolution is not expected until May 31, 2021 at the earliest.

950-921 Other Income - Snack Vending Canteen
· Decline in vending sales due to COVID-19 impacts.

950-951 Other Income - ATM Space
· Freedom First Federal Credit Union declined to renew their lease.

950-953 Other Income - Miscellaneous
· Credits from closing pre-transition vendor accounts.

961-000 Interest Income - Investments
· Performance of the investment markets.

970-000 Commissions - Follett
· Impact of COVID-19 on retail operations.
· Lack of a Minimum Guarantee for Fiscal Year 2020-2021.

Projected Budget for the Twelve Months
Ending June 30, 2022

Projected Projected Projected Projected Projected
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21

Ordinary Income/Expense 27,592 27,592 27,592 41,387 27,592
Expense: 3,415 3,415 3,415 5,122 3,415
500-001 · Personnel Expenses 2,111 2,111 2,111 3,166 2,111
500-000 · Salaried & Classified Expense
510-000 · Retirement Contributions 8 8 8 12 8
520-000 · FICA Expense 83 83 83 124 83
530-000 · State Unempl. Insurance Expense 72 72 72 108 72
540-000 · Life Insurance Expense 40 40 40 61 40
550-000 · Long-Term Disability Insurance Expense 3,343 3,343 3,343 5,014 3,343
· Short-Term Disability Insurance Expense 51 51 51 76 51
560-000 · Health Insurance Expense 69 69 69 104 69
570-000 · Workman's Compensation
580-000 · Leave Balance Expense 36,784 36,784 36,784 55,174 36,784

Total 500-001 · Personnel Expenses

600-001 · Other Expenses
600-000 · Utilities Expense
610-000 · Repairs & Maintenance Expense 5,364 5,764 6,521 4,439 7,154
620-000 · Depreciation Expense 6,693 10,533 3,621 4,823 2,528
630-000 · Vehicle Expense 16,484 16,484 16,364 16,364 16,364
640-000 · Rent Expense
650-000 · Telephone Expense 123 - - - -
660-000 · Insurance Expense 73,808 73,808 73,808 73,808 73,808
670-000 · Taxes & Licenses 4,500 4,500 4,500 4,500 4,500
680-000 · Supplies Expense 37,560
690-000 · Dues & Subscriptions - - - -
700-000 · Advertising Expense 145 - - 939 -
720-000 · Education 338 98 171 69 432
740-000 · Cash Long/ Short 2,529 69 69 191 1,061
750-000 · Credit Card Discount Fee - - - - -
760-000 · Miscellaneous Expense - - - - -
- - - - -
760-970 · Wells Fargo Service Fee - - - - -
· Coupon 1,000 1,000 867 366 272
305 445 454 462 441
780-000 · Travel & Entertainment Expense - - - - -
782-000 · Corp Food & Entertainment - - - - -
- - - - -
· Freight In - - - - -
· Freight Out - - - - -
810-000 · Royalty - - - - -
810-000 · Postage Expense - 63 - 110
820-000 · Professional Fees Expense 2,003 35,753 23,728 8
830-000 · Interest - - - 10,804 3
840-000 · Late Payment - - - -
- - 754 - -
850-000 · Hokie Stone Expense - 1,269
150,852 148,517 130,857 59
Total 600-001 · Other Expenses 107,942
187,636 185,301 167,642 116,832
Total Expense 144,726
(187,636) (185,301) (167,642) 172,006
Net Ordinary Income (144,726)
(172,006)

Other Income/Expense 3,536 3,692 14,859 14,411 11,680
Other Income 6,416 6,416 6,416 6,416 6,416
950-920 Other Income - Soft Drink Vending 112,863 31,667 31,667 31,666 31,667
950-921 Other Income - Snack Vending Canteen 1,482 (126) (137) (106) (152)
950-922 Other Income - Laundry Vending
950-923 Other Income - CRC Vending Kwik Kafe - 800 400 - 400
950-951 Other Income - ATM Space 300 1,478 621 - 24
950-953 Other Income - Miscellaneous - - 950 -
950-954 Other Income - Hokie Stone - - - - -
950-955 Other Income - Bad Debt Recovery - - - - -
960-000 Interest Income - Checking Acct. 10,693 - 3,337 1,613 (42)
961-000 Interest Income - Investments 205,063 6,178 121,475 104,099 96,097
970-000 Commissions - Follett - 414,415 21,865 - 12,554
972-000 Other Income - Reimbursements 8,333 183 8,333 8,333 8,333
974-000 Execution Payment - Follett 8,333
348,687 208,836 167,382 166,978
Total Other Income 473,037
161,051 41,194 (4,625) 22,252
Net Income 287,736

Projected Projected Projected Projected Projected Projected Projected Projected
Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 July '21 - June '22

27,592 27,592 27,592 27,592 41,387 27,592 27,592 358,694
3,415 3,415 3,415 3,415 5,122 3,415 3,415 44,394
2,111 2,111 2,111 2,111 3,166 2,111 2,111 27,442

8 8 8 8 12 8 8 104
83 83 83 83 124 83 83 1,078
72 72 72 72 108 72 72
40 40 40 40 61 40 40 936
3,343 3,343 3,343 3,343 5,014 3,343 3,343 522
51 51 51 51 76 51 51 43,458
69 69 69 69 104 69 69 662
898
36,784 36,784 36,784 36,784 55,174 36,784 36,784
478,188
6,301 6,590 8,608 6,688 3,350 4,338 4,279
3,942 2,005 8,736 3,353 5,349 5,349 5,349 69,396
15,943 15,943 15,903 15,903 15,903 15,903 15,373 62,281
192,935
720 20 253 - 308 308 308 2,040
73,808 73,808 73,808 73,808 73,808 73,808 73,808 885,696
4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000
37,560
- - - - - - - 3,369
- 839 - - 482 482 482 3,245
366 225 194 449 449 449 5,749
121 249 36 5 345 345 345
- - - 389 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - -
194 831 322 - 1,000 1,000 1,000 8,408
432 268 288 556 300 300 300 4,286
- - - 291 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 51 51 51 412
2 6 70 7,306 7,306 7,306 103,935
3 378 4,034 5,311 - - - -
- - - - - - -
- - - - - - - 8,977
826 4,590 - 1,050
429 1,442,289

107,156 110,248 117,117 111,924 113,151 114,139 113,550 1,920,477

143,940 147,032 153,901 148,708 168,325 150,923 150,334 (1,920,477)

) (143,940) (147,032) (153,901) (148,708) (168,325) (150,923) (150,334)

7,795 9,879 11,870 15,862 12,100 9,900 225,000 340,583
6,416 6,416 76,996
6,416 6,416 6,416 6,416 6,416 31,666 31,666 461,196
-
31,667 31,667 31,667 31,667 31,666 - 5,200 346
400 500 9,600
) (152) (146) (169) (148) - 500 - 5,064
- - 2,340
400 400 400 800 400 - -
- 3,000 -
- - 1,141 - 500 3,000 -
112,637 467,922 35,271
- - - 1,390 - 5,837 5,837 2,000,000
8,333 8,333 80,163
----- 99,996
178,689 753,875
----- 3,111,555
27,766 603,540
) 3,673 3,529 1,506 (4,216) 3,000 1,191,078

71,588 154,347 59,180 72,022 121,154

11,407 5,979 4,827 5,837 5,837

8,333 8,333 8,333 8,333 8,333

141,127 220,404 125,172 137,963 189,407

(2,813) 73,371 (28,730) (10,745) 21,081

Projected Budget Comparison
Fiscal Year 2021-2022 Budget

vs
Fiscal Year 2020-2021 Projected

Budget Projected Comparison
July '21 - June '22 July '20 - June '21
24,915
Ordinary Income/Expense 358,694 333,779 2,051
Expense: 44,394 42,343 1,807
500-001 · Personnel Expenses 27,442 25,635
500-000 · Salaried & Classified Expense (16)
510-000 · Retirement Contributions 104 120 (1,130)
520-000 · FICA Expense 1,078 2,208 (1,353)
530-000 · State Unempl. Insurance Expense 2,289
540-000 · Life Insurance Expense 936 522
550-000 · Long-Term Disability Insurance Expense 522 - 1,718
· Short-Term Disability Insurance Expense 43,458 41,740
560-000 · Health Insurance Expense 662 507
570-000 · Workman's Compensation 898 155 656
580-000 · Leave Balance Expense 242
478,188 29,677
Total 500-001 · Personnel Expenses 448,511
69,396 0
600-001 · Other Expenses 62,281 69,396 0
600-000 · Utilities Expense 192,935 62,281 8,163
610-000 · Repairs & Maintenance Expense 2,040 184,772 0
620-000 · Depreciation Expense 885,696 2,040 3,931
630-000 · Vehicle Expense 54,000 881,765 (5,587)
640-000 · Rent Expense 37,560 59,587 0
650-000 · Telephone Expense 3,369 37,560 0
660-000 · Insurance Expense 3,245 3,369 0
670-000 · Taxes & Licenses 5,749 3,245 0
680-000 · Supplies Expense 5,749 0
690-000 · Dues & Subscriptions - 0
700-000 · Advertising Expense - - 0
720-000 · Education - - 0
740-000 · Cash Long/ Short - - (10,503)
750-000 · Credit Card Discount Fee 8,408 - 0
760-000 · Miscellaneous Expense 4,286 18,911 0
- 4,286 (12)
760-970 · Wells Fargo Service Fee - - 0
· Coupon - 12 0
- - 0
780-000 · Travel & Entertainment Expense - - 0
782-000 · Corp Food & Entertainment - - 0
412 - 0
· Freight In 103,935 412 0
· Freight Out - 103,935 0
810-000 · Royalty - - 0
810-000 · Postage Expense 8,977 -
820-000 · Professional Fees Expense 8,977 (4,008)
830-000 · Interest 1,442,289
840-000 · Late Payment 1,446,297 25,669
1,920,477
850-000 · Hokie Stone Expense 1,894,808 (25,669)
(1,920,477)
Total 600-001 · Other Expenses (1,894,808) 10,507
7,000
Total Expense 95,000

Net Ordinary Income 0
0
Other Income/Expense 340,583 330,076 0
Other Income 76,996 69,996 0
950-920 Other Income - Soft Drink Vending 461,196 366,196 0
950-921 Other Income - Snack Vending Canteen 0
950-922 Other Income - Laundry Vending 346 346 0
950-923 Other Income - CRC Vending Kwik Kafe 9,600 9,600 658,777
950-951 Other Income - ATM Space 5,064 5,064 5,837
950-953 Other Income - Miscellaneous 2,340 2,340 0
950-954 Other Income - Hokie Stone
950-955 Other Income - Bad Debt Recovery - - 777,121
960-000 Interest Income - Checking Acct. - -
961-000 Interest Income - Investments 35,271 35,271 751,452
970-000 Commissions - Follett 2,000,000 1,341,223
972-000 Other Income - Reimbursements 80,163 74,326
974-000 Execution Payment - Follett 99,996 99,996

Total Other Income 3,111,555 2,334,434

Net Income 1,191,078 439,626

Financial Comparison
Fiscal Year 2021-2022 vs Fiscal Year 2020-2021

Significant Variance Explanations

500-000 Salaried & Classified Expense Budget Projected Comparison
· Employee Pay Raises. July '21 - June '22 July '20 - June '21 24,915

358,694 333,779

540-000 Life Insurance Expense 1,078 2,208 (1,130)
· New Administrator with lower rates.

560-000 Health Insurance Expense 43,458 41,740 1,718
· Increased Health Insurance Premiums.

620-000 Depreciation Expense 192,935 184,772 8,163
· Projected increase due to University Bookstore Roof Replacement Project.

650-000 Telephone Expense 54,000 59,587 (5,587)
· VTSI performed an indepth review and was able to reduce the telephone expense.

760-000 Miscellaneous Expense 8,408 18,911 (10,503)
· The FY '21 one-time expense to provide Follett with payroll assistance, for Virginia Tech Services, Inc.
Legacy Employees to prevent furloughs during COVID shutdown, is not in effect this year.

950-920 Other Income - Soft Drink Vending 340,583 330,076 10,507
· Projecting an increase in vending sales.
· This amount could possibly change depending on the final result of ongoing Coke negotiations.

If we return to full payment of Sponsorship Fees it could add an additional $165,000.00.

950-921 Other Income - Snack Vending Canteen 76,996 69,996 7,000
· Projecting an increase in vending sales. 461,196 366,196 95,000
2,000,000 1,341,223 658,777
950-922 Other Income - Laundry Vending
· Based on the projection that dorms will be at full capacity and will be open for the entire year.

970-000 Commissions - Follett
· Negotiations with Follett, to determine the amount of the Minimum Guarantee, have concluded.

Uses of Virginia Tech Services, Inc.
Surplus Funds

Virginia Tech Foundation, Inc.
Uses of Virginia Tech Services Surplus Funds
For the Period 1977 through 12/31/20

Surplus Funds Received Amount Comments
41,376,117 Total funds distributed to VTF from VTS FY
Investment Income & Realized Gains
5,221,708 Volume II loans; Research Funding Advance
Interest on Loans/Advances
Total Income 2,695,530 An additional $1.7 million of VTS Surplus fun
Athletic Scholarship Support 49,293,356
Endowed scholarship fund established in 19
8,025,000 endowment continue to support merit schola
provide additional support to the Pamplin Sc
Distinguished University Scholars Endowmen 3,450,000 Funds were allocated to support the design
Design Competition 10,000 Funds were allocated to support the comput
Computing Center Equipment 64,853
Endowed fund estalished in 1986 to support
Squires Endowment 5,848,198 million of the funds were redirected to the S
South Rec Lighting 283,881 endowment earnings were reduced from $4
Cochrane Hall- Sports Field 80,000 This project was funded between FY88 and
Funds were allocated to this project in FY93
Roselle Endowment 10,000 Dave Roselle was the speaker for the 1988
Distinguished Speakers 352,716 established in his name.
The distinguished speakers series began in
Torgersen Hall (ACITC) 1,800,000
Creative Arts 710,720 This fund was established in FY90 for suppo
of ACITC, which was later named Torgersen
Creative Arts Endowment 4,000,000 spent on construction costs for Torgersen H
Expenses incurred in the planning stage of t
Student Services/Southgate Endowment 2,204,932
National Merit Scholarships 1,576,782 Endowment established in FY01 to support
Presidential Scholarships Squires Endowment. It should be noted tha
South Campus Master Plan 12,945 delayed and the fund was redirected for sup
Student Health & Fitness/Rec Facility 55,000
489,000 An endowed fund valued at $14.4 million wa
The endowment was primarily funded by Sq
War Memorial Gym 17,100 lease payments which subsequently fund th

CESA purchase and renovation 3,405,000 Merit scholarships paid directly from the VTS
Loan to VTS, Inc.--Computer Software 1,540,000
Performing Arts Center 2,800,000 Funds were allocated to support scholarship

Virginia Retirement System Short Term Loan 2,230 Funds were allocated for this program in FY

Creative Arts Endowment 5,024,166 This project was funded between FY91 and
Funding used to repair/replace equipment in
Arts & Science Group, LLC 298,800 $7700 was allocated for repair of the sauna.
State Corporation Commission 75 Funds were advanced to CESA in FY92 and
million balance of the ESC advance was cov
Blacksburg Partnership 97,500 During FY02 and FY03, $1,540,000 was loa
Funds transferred to support debt service of
University Relations Study 4,985
Visitor Center 446,870 Short Term loan for faculty or having been la
Virginia Tech Services Endowment 5,798,378 and severance policies.
Total Expense 48,409,130
Funds to be transferred into the Creative Ar
Cash Balance, 12/31/20 884,225 for conceptual design and fund raising mate

Funds transferred into the Study on Tuition
research on undergraduate tuition pricing.
Annual corporate registration fee for Virginia

Budget funds to participate in start-up costs

Funds transferred into the Study on Tuition
to communications and recruitment
Funds to be transferred to Virginia Tech Vis

Funds to be used for programs and activitie

Y77 to FY20

es; Baseball Field, VTS Computer software loan, Virginia Retirement System Short Term Loan

nds was paid directly to VPI&SU in support of athletic scholarships between FY70 and FY82.
976 with an initial contribution of $300,000 from VTS to provide merit scholarships. Earnings from the
arships. Additionally, funds from this endowment have been used to establish the Arts Scholarships and
cholars program.
competition in FY83.
ting center in FY86.
t the debt service on the renovation and addition to the Squires Student Center. In FY01, all but $1.4
Student Services Endowment and the Creative Arts Endowment. Debt service payments from the
425k to $60k annually.

FY91. $192,776 was advanced for the baseball field, which was paid off in FY02.
3.
commencement. In lieu of payment, he requested that an endowed scholarship in mathematics be

n FY90.
ort of the Creative Arts Center. When the Arts Center was delayed, the funds were redirected for support
n Hall. The initial contribution of $1.8 million and ESC advance payments were eventually severed and
Hall.
the Creative Arts Center from FY90-FY95.
the future arts center. An additional $1 million was contributed to this fund from the appreciation in the
at the Creative Arts Center Endowment was initially established in FY90 with $1.8 million. This project was
pport of ACITC.
as established in FY01 to support debt service on the Student Services Building and Southgate Addition.
quires endowment appreciation. Construction was completed in FY03. Earnings will support university
he debt carried by VTF.
S General Fund.
ps in FY98.
Y95.
FY93.
n War Memorial in FY94. $9400 was allocated for equipment repair/replacement in the Hokie Gym and
.
d FY93. CESA's payments on the advance were added to the ACITC endowed fund. In FY00, the $2.5
vered by the ACITC endowment.
aned to VTS, Inc. The funds will be repaid over a period of 7 years at an interest rate of 5.09%.
f new Performing Arts Center
aid off and provide enhanced retirement benefits under the Commonwealth's Classified Employee layoff

rts Endowment with $85,000 placed in the income fund for immediate use; remaining funds are to be used
erials.
Pricing fund for services rendered to the Arts & Science Group, LLC in connection with their survey

a Tech Services, Inc.

s for new cooperative organization between the Town of Blacksburg and VA Tech.
Pricing to determine pricing options and broad-stroke aid policy, w/ attendant recommendations relations

sitor Center

es which benefit all students

Virginia Tech Services, Inc.
Surplus Funds Payment to
Virginia Tech Foundation, Inc.



Coca-Cola Negotiations

Virginia Tech Services, Inc.
Coca-Cola Sponsorship Fees, Annual Incentive Fee,

and Minimum Guarantee Negotiations
Budget Meeting Monday May 3, 2021

The University and Virginia Tech Services, Inc. are currently in active negotiations with
Coca-Cola concerning the impact of COVID on our contracts. This could impact the
payments that will be received from Coke in Fiscal Year 2021-2022.

Currently, the position being taken by the University and Virginia Tech Services, Inc. is
that for this time period we expect full payment of our Sponsorship Fees as well as our
Incentive Fee. Virginia Tech Services, Inc. Sponsorship Fees total $350,000.00 and our
Incentive Fee is $40,000.00. However, this is still a point of negotiation and we have
budgeted an amount of $225,000.00. If the negotiations resolve in our favor, the
projected budget for FY ‘22 could see an increase of $165,000.00.

Follett Guarantee Negotiations

Virginia Tech Services, Inc.
Follett Higher Education Group
Minimum Guarantee Negotiations
Budget Meeting Monday May 3, 2021

Virginia Tech Services, Inc. has completed negotiations with Follett Higher
Education Group concerning the impact of COVID-19 on our Minimum Guaranteed
Commission for Fiscal Year 2021-2022.

The Minimum Guaranteed Commission for Fiscal Year 2021-2022 will be
$2,000,000.00. This amount has been factored into our budget calculations.

Virginia Tech Services, Inc.
Office of the Executive Director
Volume Two Bookstore
801 University City Blvd.
Blacksburg, VA 24060

Budget Meeting Report
May 3, 2021


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