Virginia Military Institute report on audit for the year ended June 30, 2007
52
pages
English
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
52
pages
English
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
Publié par
Langue
English
VIRGINIA MILITARY INSTITUTEREPORT ON AUDITFOR THE YEAR ENDEDJUNE 30, 2007 AUDIT SUMMARY Our audit of Virginia Military Institute for the year ended June 30, 2007, found: • the financial statements are presented fairly, in accordance with generally accepted accounting principles; • internal control matters that we consider to be significant deficiencies; however we do not consider these matters to be material weaknesses; and • an instance of noncompliance required to be reported under Government Auditing Standards. -T A B L E O F C O N T E N T S- Pages AUDIT SUMMARY INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 2-9 FINANCIAL STATEMENTS: 10 Staemnt ofNet Aset 1-2 Combined Statement of Financial Position – Component Units 13 Statement of Revenues, Expenses, and Changes in Net Assets 14 Combined Statement of Activities – Component Units 15 Staemnt ofCash Flow 16-7 Notes to Financial Statements 18-42 INDEPENDENT AUDITOR’S REPORT 43-45Report on Financial Statements 43-44 Report on Internal Control over Financial Reporting and on Compliance and Other Matters 44-45 INSTITUTE RESPONSE 46-47 OFFICIALS 48 INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS ...
Voir
Publié par
Langue
English
VIRGINIA MILITARY INSTITUTE
REPORT ON AUDIT
FOR THE YEAR ENDED
JUNE 30, 2007
AUDIT SUMMARY Our audit of Virginia Military Institute for the year ended June 30, 2007, found:
• • •
the financial statements are presented fairly, in accordance with generally accepted accounting principles;
internal control matters that we consider to be significant deficiencies; however we do not consider these matters to be material weaknesses; and
an instance of noncompliance required to be reported under Government Auditing Standards.
-T A B L E O F C O N T E N T S- AUDIT SUMMARY INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL STATEMENTS: Statement of Net Assets Combined Statement of Financial Position Component Units Statement of Revenues, Expenses, and Changes in Net Assets Combined Statement of Activities Component Units Statement of Cash Flow Notes to Financial Statements INDEPENDENT AUDITOR’S REPORT Report on Financial Statements Report on Internal Control over Financial Reporting and on Compliance and Other Matters INSTITUTE RESPONSE INSTITUTE OFFICIALS
Pages 1
2-9
10 11 12 - 13 14 15 16-17 18-42
43-45 43-44 44-45
46-47
48
INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS Improve Logical Access Policies and Procedures The Institute does not consistently remove user accounts on sensitive and mission critical systems upon employee termination. The Institution implemented semi-annual user account reviews in response to our audit of the Institution’s access controls in 2005. However, the Institute’s user account removal policy and process lacks certain industry best practices, such as indicating a specific number of days after an employee has separated from the Institute for the employee’s department to submit an account deletion request to the IT department. We recommend that the Institute improve its logical access policies and procedures to require a certain time period for notifying IT of terminations, require immediate user account termination notification when the Institute does not give the employee advance notice of separation, and to train the Institute’s supervisors in their responsibilities through the Institute’s Security Awareness Program. Properly Complete Employment Eligibility Verification Forms Institute personnel are not properly completing Employment Eligibility Verification forms (I-9) in accordance with guidance issued by the US Citizenship and Immigration Services of the US Department of Homeland Security in its Handbook for Employers. We checked the employment records of ten employees and while all employees were eligible for employment, we found the following. a. Two completed correctly, b. Five had Section 2 (Employer Review and Verification) improperly completed, c. or within three business days of theFour did not have the employer’s review and signature before employment start date, and d. Five did not have the employee’s signature before or on the employment start date. We recommend that management develop a training program for all applicable employees on the requirements of completing the I-9 form. Management should also implement a process for monitoring accuracy in the I-9 process. The federal government has stepped up its enforcement efforts related to hiring illegal immigrants, which makes having a good I-9 process in place more important than ever before. Weaknesses in the I-9 process could result in fines and penalties against the Institution.
1
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
Overview Virginia Military Institute (VMI) is pleased to present its financial statements for the fiscal year ended June 30, 2007, along with the financial statements of its affiliates as required under Governmental Accounting Standards Board Statement 39. This management discussion and analysis is designed to help readers understand the accompanying financial statements and to provide an objective, easily readable analysis of the Institute’s financial activities based on currently known facts, decisions and conditions. This discussion focuses primarily on VMI’s fiscal year 2007 and includes highly summarized data that should be read in conjunction with the accompanying financial statements and notes to the financial statements. VMI’s financial statements are prepared in accordance with Governmental Accounting Standards Board (GASB) standards and include three basic statements: the Statement of Net Assets; the Statement of Revenues, Expenses, and Changes in Net Assets; and the Statement of Cash Flows. The affiliates’ financial statements are prepared in accordance with Financial Accounting Standards Board (FASB) standards and include the Statement of Financial Condition and the Statement of Activities. The following analysis discusses elements from VMI’s statements and provides an overview of the Institute’s activities. It also includes a separate section that addresses the financial statements of VMI’s affiliates. Financial Highlights The financial position of the Institute continues to get stronger, with assets of $252.7 million and liabilities of $29.9 million at June 30, 2007, compared to assets of $157.4 million and liabilities of $30.5 million at June 30, 2006. Net assets, which represent the residual interest in the Institute’s assets after liabilities are deducted, increased $96.0 million in the 2007 fiscal year, to $222.9 million at June 30, 2007. Net assets increased by $29.1 million during the 2006 fiscal year. This $66.9 million improvement is largely attributable to state appropriations and private contributions received specifically for capital construction. The increases in restrictedexpendable net assets an d the investment in capital assets, net of related debt accounts for nearly all of the increase in net assets. Of the $96 million increase in net assets, $50.1 million can be attributed to restrictedexpendable while $46 million is attributable to the investment in capital assets. This is the result of VMI’s on-going capital improvement plan that includes the complete renovation of Nichols Engineering Hall, Cocke Hall Annex, Jackson Memorial Hall, Crozet Hall, emergency repairs to Barracks, the Football and Baseball Stadiums, Mallory Hall, Kilbourne Hall, storm water drainage improvements, an expansion to Barracks and a new Leadership and Ethics Center. During the 2007 fiscal year, VMI commenced the construction of the Leadership and Ethics Center ($21 million) and continued the Expansion and Renovation of Barracks project ($60.8 million). The renovations of Crozet Hall ($15.3 million), Nichols Engineering Hall ($17.8 million), Jackson Memorial Hall ($3.9 million), the storm water drainage improvements ($1.3 million), renovation of Mallory Hall ($12.9 million), and the renovation and expansion of Athletic facilities ($20.5 million), were all completed during the 2007 fiscal year. The renovation and expansion of Kilbourne Hall ($27.5 million) is still ongoing while the North Institute Hill Parking ($2 million) will be completed early in the 2008 fiscal year. Operating revenues increased by $1.5 million over the preceding year or 6.1 percent, to $26.3 million, and net non-operating revenues increased by $2.2 million or 7.8 percent, to $30.8 million. Operating expenses increased by $2.7 million or 4.7 percent, to $59.4 million. Other revenues increased by $65.8 million or 202.5 percent in the 2007 fiscal year to $98.3 million from $32.5 million during the 2006 fiscal year. The largest portion of this increase in other revenues is attributable to a $44.8 million increase in state
2
appropriations for capital projects while an additional $21.2 million can be attributed to an increase in private gifts and grants for capital projects. Statement of Net Assets The Statement of Net Assets presents the financial position of the Institute at the end of the fiscal year and includes all assets and liabilities of the Institute. The difference between total assets and total liabilities net assetsis one indicator of the current financial cond ition of the Institute, while the change in net assets is an indicator of whether the overall financial condition has improved or worsened during the year. Readers of the Statement of Net Assets should be able to determine the assets available to continue the Institute’s operations. They should also be able to determine how much the Institute owes vendors, creditors, and others. Net Assets are divided into three major categories. The first category, “Invested in capital assets, net of related debt, provides the Institute’s equity in property, plant, and equipment. The next category is “Restricted net assets which comprise two subcategories, expendable and nonexpendable. Expendable restricted resources are available for expenditure by the Institute in accordance with stipulation of donors and/or other entities that have placed time or purpose restrictions on the use of the assets. Nonexpendable restricted resources typically represent the corpus of endowments and are available only for investment purposes. The final category is “Unrestricted net assets which are available for any lawful purpose of the Institute. Statement of Net Assets June 30, 2006 June 30, 2007 Variance (Restated) Assets: Current assets $ 15,957,175 $ 16,810,761 $ (853,586) (5.1)% Capital assets, net 150,175,297 110,219,165 39,956,132 36.3% Other non-current assets 86,616,185 30,324,142 56,292,043 185.6% Total assets 252,748,657 157,354,068 95,394,589 60.6% Liabilities: Current liabilities 11,179,418 10,607,492 571,926 5.4% Non-current liabilities 18,712,152 19,855,538 (1,143,386) (5.8)% Total liabilities 29,891,570 30,463,030 (571,460) (1.9)% Net Assets: Invested in capital assets, net of related debt 134,273,630 88,242,815 46,030,815 52.2% Restricted - expendable 75,974,556 25,853,033 50,121,523 193.9% Restricted - nonexpendable 4,267,843 4,267,460 383 0.0% Unrestricted 8,341,058 8,527,730 (186,672) (2.2)% Total net assets $222,857,087 $126,891,038 $95,966,049 75.6% VMI’s current assets decreased by $.9 million, or 5.1 percent. Because of reporting guideline changes from the Treasury Department, amounts due from the Commonwealth for General Obligation Bond (GOB) funded projects as well as projects funded through the Virginia College Building Authority (VCBA) were restated for the 2006 fiscal year, requiring the Institute to reflect an additional $3.1 million due from the Commonwealth for the Nichols Hall, Kilbourne Hall and Mallory Hall projects as of June 30, 2006, for expenses incurred during 2006 and reimbursed in fiscal year 2007. At the end of the 2007 fiscal year, only
3
$.1 million was due from the Commonwealth for these GOB and VCBA funded projects. This decrease is partially offset by an increase in cash and cash equivalents attributed to the return of endowment proceeds earmarked for capital projects. The Leadership and Ethics Center is funded with bond proceeds as well as endowment proceeds. Because the bond proceeds must be used within a given time frame, the endowment proceeds were returned to current assets until the bond proceeds are depleted. Additionally, inventories increased during the 2007 fiscal year as a result of the U.S. Army’s uniform conversion from Battle Dress Uniforms (BDU’s) to Army Combat Uniforms (ACU’s). Capital assets, net of depreciation, increased by $40 million to $150.2 million as the result of the completion of several large capital projects. In addition to amounts previously capitalized as construction in progress, the following increases were recorded: $9.3 million Nichols Hall, $7.6 million Crozet Hall, $.4 million Foster Stadium, $6.9 million Gray-Minor Baseball Stadium, $4.2 million storm water drainage, $2.4 million Cocke Hall Annex, $2.5 million Jackson Memorial Hall, and $5.2 million Hinty Hall. Other noncurrent assets increased by $56.3 million to $86.6 million as a result of general fund support received from the Commonwealth for the expansion and renovation of Barracks and the renovation of Mallory Hall. Current liabilities increased slightly, $.6 million, over the previous year to $11.2 million. Salaries and benefits payable as of the end of the 2007 fiscal year increased by $1.8 million as a result of the last payroll of the fiscal year being paid in July. Because of the 2006 budget impasse, the Governor directed the final payroll of fiscal year 2006 to be paid in June rather than accrued and paid in the following fiscal year. This increase was partially offset by a decrease in accounts payable of $1.1 million as a result of the completion of several capital projects. Noncurrent liabilities decreased $1.1 million to $18.7 million as a result of less retainage held for capital projects and the payment of principal amounts due for notes and bonds payable. Net assets totaled $222.9 million at year end. This represented an increase of $96 million over the previous year, due largely to the increase of capital assets as a result of construction, and the additional general fund support received from the Commonwealth for other capital projects. Statement of Revenues, Expenses, and Changes in Net Assets Changes in the total net assets as presented on the Statement of Net Assets are based on the activity presented in the Statement of Revenues, Expenses, and Changes in Net Assets. The purpose of this statement is to present the Institute’s operating and non-operating revenues recognized and expenses paid and any other revenues, expenses, gains, and losses received or incurred by the Institute. Operating revenues are generally recognized when goods and services are provided to cadets and other constituencies of the Institute. Operating expenses are the cost incurred to acquire or produce the goods and services provided and to carry out the Institute’s programs and activities. Non-operating revenues generally represent income and support for which goods and services are generally not provided. For example, it includes State appropriations for VMI’s Educational and General and Unique Military Activities Programs for which goods and services are not directly provided to the State by VMI.
4
Statement of Revenues, Expenses, and Changes in Net Assets June 30, 2006 (Restated) Variance June 30, 2007 Operating revenues: Tuition and fees $ 12,031,383 $ 11,188,980 $ 842,403 7.5% Grants and contracts 947,051 1,211,097 (264,046) (21.8)% Auxiliary enterprises 10,653,102 9,686,439 966,663 10.0% Unique military activities 1,482,892 1,399,448 83,444 6.0% Other sources 1,150,297 1,257,202 (106,905) (8.5)% Total operating revenues 26,264,725 24,743,166 1,521,559 6.1% Operating expenses: Educational and general 37,812,377 37,047,094 765,283 2.1% Auxiliary enterprises 16,757,487 14,975,541 1,781,946 11.9% Unique military activity 4,840,824 4,747,963 92,861 2.0% Loan cancellations and write-offs 17,245 - 17,245 - Total expenses 59,427,933 56,770,598 2,657,335 4.7% Operating loss (33,163,208) (32,027,432) (1,135,776) 3.5% Non-operating revenues (expenses): State appropriations 13,565,769 12,971,013 594,756 4.6% Gifts and contributions 14,862,389 13,629,188 1,233,201 9.0% Investments 3,556,303 2,037,749 1,518,554 74.5% Other (1,201,408) (73,233) (1,128,175) (1540.5)% Net non-operating revenues 30,783,053 28,564,717 2,218,336 7.8% Income (loss) before other revenues (2,380,155) (3,462,715) 1,082,560 (31.3)% Other revenues 98,346,204 32,513,984 65,832,220 202.5% Increase (decrease) in net assets 95,966,049 29,051,269 66,914,780 230.3% Net assets - beginning of year 126,891,038 97,839,769 29,051,269 29.7% Net assets - end of year $222,857,087 $126,891,038 $95,966,049 75.6% Operating revenues totaled $26.3 million, an increase of $1.5 million or 6.1 percent. A 7.5 percent increase in total tuition and fee revenue ($.8 million) and a 10 percent increase in auxiliary enterprise revenue ($1 million) can be attributed to tuition and fee increases of 7.5 percent for in-state cadets (56.2 percent of the Corps) and 5.9 percent for out-of-state cadets (43.8 percent of the Corps). Operating expenses increased by $2.7 million, or 4.7 percent, to $59.4 million. Educational and general program expenses increased by $.8 million, or 2.1 percent. Auxiliary enterprise expenses increased $1.8 million, or 11.9 percent, largely attributable to an increase in depreciation expense for new auxiliary facilities, Crozet Hall, Foster Stadium and Gray-Minor Baseball Stadium ($510,000), a rate increase from VMI’s food service vendor, Aramark ($300,000), and an increase in personal service costs for Athletics due to the creation of a Chief of Staff for Athletics position and a contract payoff for the previous football coach ($370,000). 5
Non-operating revenues total $30.8 million, an increase of $2.2 million, or 7.8 percent. Gifts and contributions increased $1.2 million as a result of additional support received from the Alumni Agencies for unrestricted and restricted funds. Investment income increased by $1.5 million to $3.6 million, mostly attributable to realized gains on investments. Other revenues within the non-operating revenue category decreased by $1.1 million as a result of a loss on the disposal of plant assets due primarily to the demolition of Lejeune Hall, the residence at 208 Maiden lane, and the outdoor track. These facilities were demolished to make way for other structures and improvements. Other revenues total $98.3 million, an increase of $65.8 million, or 202.5 percent. Private funds from the VMI Foundation for capital projects increased by $21.2 million while State support for capital projects increased by $44.8 million. Statement of Cash Flows This statement presents detailed information about the Institute’s cash activity during the year. It is divided into five parts: operating activities, noncapital financing activities, investing activities, capital and related financing activities, and reconciliation of the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses, and Changes in Net Assets. Statement of Cash Flows June 30, 2006 Variance (Restated)June 30, 2007 Net cash used by operating activities $(27,216,018) $(29,749,367) $ 2,533,349 8.5% Net cash provided by non-capital financing activities 28,458,918 26,821,243 1,637,675 6.1% Net cash provided by capital and related financing activities 54,887,201 (1,370,669) 56,257,870 >100% Net cash provided by investing activities 1,488,158 1,411,023 77,135 5.5% Net increase (decrease) in cash 57,618,259 (2,887,770) 60,506,029 >100% Cash - beginning of year 15,858,844 18,746,614 (2,887,770) (15.4)% Cash - end of year $ 73,477,103 $ 15,858,844 $57,618,259 363.3% Cash provided and/or (used) by operating activities will always result in a net use for the Institute because all state appropriations and private gifts are treated as cash sources for noncapital or capital financing activities. Tuition and fees alone represents more than 91 percent of the cash sources for operating activities while all expenses for operating activities are reflected in this section of the Statement of Cash Flows. Net cash provided from noncapital financing activities consists largely of State and private fund support of operations. Nearly all of the $1.6 million increase over the previous fiscal year can be attributed to the budgeted increase in support received from the VMI Alumni Agencies. The $54.9 million of net cash provided by capital and related financing activities consists primarily of state appropriations, gifts and contributions from the VMI Foundation and proceeds from capital debt received for capital projects (Mallory Hall, Kilbourne Hall, Expansion of Barracks, improvements to Alumni Memorial Stadium and Patchin Fields, and the new Leadership and Ethics Center), less amounts expended for these projects and their related debt obligations. 6
The $1.5 million in net cash provided by investing activities primarily reflects spendable income from VMI’s endowment assets that support various programs and activities. Capital Asset and Debt Administration Fiscal year 2007 was the fifth year of VMI’s Vision 2039 capital projects program and is expected to continue for the remainder of this decade. During the year, planning and/or renovation and construction occurred on several academic facilities as well as other mission essential facilities: Nichols Engineering Hall ($17.8 million), Mallory Hall ($12.9 million), Kilbourne Hall ($20.9 million), Jackson Memorial Hall ($3.9 million), Cocke Hall Annex ($2.2 million), a new Leadership and Ethics Center ($21 million), and the renovation and expansion of Barracks ($60.8 million). The Nichols Engineering Hall and the Mallory Hall projects were funded from the State’s 2002 General Obligation Bonds (GOB) with some additional funding received from the State’s general fund. The main Nichols Engineering Hall building was completed in August 2005 and returned to service; the annexes were completed in July 2006. The Mallory Hall renovation project was completed in August 2007. The Kilbourne Hall project consists of three components: the construction of a new Physical Plant facility; the renovation and expansion of Kilbourne Hall and the renovation of the old Buildings and Grounds facility; and improvements to storm water lines along Main Street (this storm water project also included additional funding of $1.3 million from a separate storm water project). Construction on the new Physical Plant facility began in September 2005 and construction on the storm water project began in October 2005. The new Physical Plant facility was completed in September 2006 and the storm water project was completed in December 2006. The Kilbourne Hall renovation and old Buildings and Grounds facility renovation and expansion component started in October 2006 and are scheduled to be done in phases. The first phase, renovation of the old Buildings and Grounds facility and expansion of Kilbourne Hall, is scheduled to be completed in December 2007 and the second phase, renovation of Kilbourne Hall, is scheduled to be completed in July of 2008. The Kilbourne Hall project is funded predominantly by State general funds with some support from private funds received through the VMI Foundation. The Jackson Memorial Hall and Cocke Hall Annex projects were completed in July 2006. These two projects were financed under the Virginia College Building Authority (VCBA) “pooled bond program in 2002 with debt service being funded from cadet fees and private funds. Planning began in fiscal year 2005 for the Leadership and Ethics Center which began construction in October 2006 with completion scheduled for November 2008. This project is being financed by one of VMI’s alumni agencies and from a private gift to VMI; VMI will not incur any debt on this project. VMI also had two major auxiliary enterprise projects: the renovation and expansion of Crozet Hall ($14.6 million) and the renovation of the VMI football and baseball stadiums ($20 million). Crozet Hall is VMI’s sole dining facility (mess hall) and was completed in July 2006. A major component of this project was a new kitchen which was completed and placed in service in October 2005. This project was financed with State revenue bonds (9c debt) and debt service is being funded from VMI private funds. The stadiums project began construction in October 2005 and is scheduled to be completed in October 2007. This project is being financed by one of VMI’s alumni agencies; VMI will not incur any debt on this project. The 2005 General Assembly appropriated $1.9 million of State funds to begin planning the renovation and expansion of the VMI Barracks. During the 2006 fiscal year, the General Assembly appropriated $46.8 million to expand the Barracks as well as renovate the existing Barracks. During 2007, the General Assembly appropriated an additional $14 million for the Barracks project. This will provide
7
much needed repairs and upgrades to this historic building and allow VMI to grow the Corps to 1,500 cadets beginning in Fall 2010. The addition to Barracks is scheduled to be completed in July 2008 and the renovation is scheduled for completion in August 2009. In October 2006, the North Institute Hill Parking project ($2 million) got underway. This surface parking facility was funded from private sources and was completed in September 2007. In summary, VMI had approximately $115.6 million in capital projects in progress at the end of June 2007, Mallory Hall, Kilbourne Hall, Renovation and Expansion of Barracks, and the Leadership and Ethics Center. These projects are being funded mostly from State and private sources. VMI has incurred debt on only the Jackson Memorial Hall, Cocke Hall Annex, and Crozet Hall projects. The debt on these projects totals approximately $15.6 million and results in annual debt service payments of $1.3 million. VMI’s Board of Visitors adopted debt guidelines in August 2005 to help ensure sound management and control of debt. Affiliates’ Financial Statements VMI’s affiliates consist of the VMI Alumni Agencies (VMIAA) and the VMI Research Laboratories, Inc. (VMIRL). The VMIAA is comprised of four separate entities: the VMI Alumni Association, the VMI Foundation, Inc., the VMI Development Board, Inc., and the VMI Keydet Club, Inc. These entities share a common purpose of raising funds, investing funds, and performing other activities in support of VMI, and accordingly, present their financial statements on a combined basis. The VMIRL exists to administer grant and contract research, symposia, and other educational programs at VMI. Total net assets of the VMIAA and the VMIRL amounted to $348.7 million and $.3 million, respectively, as of June 30, 2007 as compared to $321 million and $.5 million as of June 30, 2006. VMIAA net assets consist of $51.1 million in unrestricted net assets and $297.6 million in temporarily and permanently restricted net assets. VMIAA revenues totaled $24.3 million for fiscal year 2007 and $23.7 million for fiscal year 2006. The amount the VMIAA remitted directly to or on behalf of VMI for fiscal year 2007 was $39.1 million compared to $24.5 million for fiscal year 2006, a 59.6 percent increase. This increase can be attributed to additional funds provided for capital improvements to the Football and Baseball Stadiums, the renovation of Kilbourne Hall, North Institute Hill Parking, and the Leadership and Ethics Center. Economic Outlook State appropriations provided 23.3 percent of VMI’s total revenue and support for operations in fiscal year 2007 and 24.3 percent in fiscal year 2006. State appropriations were increased approximately $1.6 million for fiscal year 2008 to cover the State’s share of cost increases related to salary and fringe benefit increases approved by the General Assembly, in-state student enrollment growth, and operating costs for new or renovated facilities coming on-line. This also included additional State funds for VMI’s Unique Military Activities (UMA) Program of $460,000. However, as a result of a subsequent $641 million shortfall in the State’s 2006-2008 Biennial Operating Budget, the Governor reduced State appropriations to agencies and institutions in October 2007 that apply to fiscal year 2008 and the upcoming 2008-2010 biennium. VMI’s reduction is approximately $902,000 and will require a reduction in discretionary spending and maximization of savings from employee vacancies and turnover. State appropriations for fiscal year 2008 are projected to provide approximately 25 percent of total revenue and support for operations. VMI’s Six-Year Institutional Plan was submitted to the State on September 28, 2007 (as required by the 2005 Restructured Higher Education Financial and Administrative Operations Act) and describes VMI’s needs for additional State funds for on-going operations and new initiatives through 2014. Many of the new initiatives are for accreditation and administrative mandates.
8
