Annual 2020 Financial Report
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ANNUAL2020 Financial Report UNIVERSITY OF VERMONT & STATE AGRICULTURAL COLLEGE (a component unit of the State of Vermont) UNIVERSITY OF VERMONT & STATE AGRICULTURAL COLLEGE (a component unit of the State of Vermont) ANNUAL FINANCIAL REPORT 2020 Board of Trustees Ron E. Lumbra, Chair, Rye, NY (March 2022) Cynthia Barnhart, Vice Chair, South Stafford, VT (March 2026) Curt McCormack, Secretary, Burlington, VT (March 2021) Briar L. Alpert, Charlotte, VT (March 2022) Jodi H. Goldstein, Weston, MA (March 2024) David B. Aronoff, Newton, MA (March 2022) David J. Gringeri, West Haven, VT (March 2021) John L. Bartholomew, Hartland, VT (March 2023) Donald H. McCree, Rye, NY (March 2026) Otto G. Berkes, Bedford Hill, NY (March 2024) Carol B. Ode, Burlington, VT (March 2025) Robert P. Brennan, Jr., Pleasantville, NY (March 2024) Ed Pagano, Washington, D.C. (March 2021) Kevin Christie, White River Junction, VT (March 2025) Shapleigh Smith, Jr., Morrisville, VT (March 2023) Frank J. Cioffi, South Burlington, VT (March 2023) Berke Tinaz, Shelburne, VT (March 2022) John M. Dineen, Chestnut Hill, MA (March 2026) Tristan D. Toleno, Brattleboro, VT (March 2021) Johannah L. Donovan, Burlington, VT (March 2023) Samuel R. Young, West Glover, VT (March 2025) Carolyn K. Dwyer, Burlington, VT (March 2025) Suresh V. Garimella, President, ex officio Phil Scott, Governor, ex officio Administration Suresh V. Garimella ...................................................................................................................................................................................................................................................President Patricia Prelock .................................................................................................................................................................................................Provost and Senior Vice President Sharon Reich Paulsen ................................................Vice President for Legal Affairs and General Counsel, and Chief of Staff to the President Richard H. Cate............................................................................................................................Vice President for Finance and Administration, and Treasurer Vacant...................................................................................................................................................................................................Vice Provost for Enrollment Management Gary L. Derr ..............................................................................................................................................Vice President for Executive Operations and Public Safety Annie Stevens ..........................................................................................................................................................................................................Vice Provost for Student Affairs Wanda R. Heading-Grant ...................................................................................................................................Vice President for Diversity, Equity and Inclusion Kirk Dombrowski ...........................................................................................................................................................................................................Vice President for Research T. Simeon Ananou ............................................................................................................................................................................................................Chief Information Officer Nicci Brown ..............................................................................................................................................................................................................Chief Communications Officer Cynthia J. Forehand .............................................................................................................................................................................................................Dean, Graduate College Nancy Mathews .......................................................................................................Dean, The Rubenstein School of Environment and Natural Resources Sanjay Sharma ...................................................................................................................................................................................Dean, The Grossman School of Business Richard L. Page ..............................................................................................................................................................Dean, Robert Larner, M.D. College of Medicine Linda Schadler ........................................................................................................................................Dean, College of Engineering and Mathematical Sciences Leslie Parise ..........................................................................................................................................................................Dean, College of Agriculture and Life Sciences William Falls ....................................................................................................................................................................................................Dean, College of Arts and Sciences David A. Nestor ........................................................................................................................................................................................................................................Dean of Students Scott Thomas ...................................................................................................................................................Interim Dean, College of Nursing and Health Sciences Bryn Geffert...........................................................................................................................................................................................................................Dean, University Libraries Scott Thomas .....................................................................................................................................................................Dean, College of Education and Social Services David Jenemann ..........................................................................................................................................................................................................................Dean, Honors College Cynthia L. Belliveau ................................................................................................................................................................Dean, Continuing and Distance Education Photography by Sally McCay • Design by Direct Design, Inc. ANNUAL FINANCIAL REPORT 2020 Table of Contents 1 .....................Letter from the President 2.....................Management’s Responsibility for the Financial Report 3.....................Independent Auditor’s Report 5.....................Management’s Discussion and Analysis 13 ....................Statements of Net Position 14....................Statements of Revenues, Expenses and Changes in Net Position 15 ....................Statements of Cash Flows 16....................Notes to Financial Statements 34 ...................Required Supplementary Information - Postemployment Benefits 4 UNIVERSITYUNIVERSITY OF OF VERMONT VERMONT & &STATE STATE AGRICULTURAL AGRICULTURAL COLLEGE COLLEGE (a component(a component unit unit of ofthe the State State of Vermont)of Vermont) ANNUAL FINANCIAL REPORT 2020 Letterf rom the President Members of the Board of Trustees, I attach the Annual Financial Report for the Fiscal Year ended June 30, 2020. In spite of the challenges presented by the effects of COVID-19, the state of UVM’s finances is sound. These financial statements reflect an increase of $24 million in the University’s net position, primarily due to an increase in the value of the endowment due to the ever-changing financial markets. It is important to note that, since the inception of the Foundation, new endowment gifts have been reflected in the financial records of the UVM Foundation rather than the University. This limits the growth of the University’s endowment, but all of the gifts to the Foundation flow to the benefit of UVM students and the University. As of June 30, 2020, the market value of the entire combined endowment (UVM and Foundation) was $562 million. The University of Vermont remains focused on student affordability and financial access, quality enhancements, strategic alignment of priorities, a focus on distinctive research strengths, engagement with the state and our communities, and resource and revenue growth. This will ensure an even more financially healthy University, which will enable us to continue to improve the positive student experience at UVM, as well as the positive and substantial contributions UVM makes to the state, the region, and the country. Best wishes, Suresh Garimella UNIVERSITY OF VERMONT & STATE AGRICULTURAL COLLEGE 1 (a component unit of the State of Vermont) ANNUAL FINANCIAL REPORT 2020 Management’s Responsibility for the Financial Report The accompanying financial statements of the University of Vermont and State Agricultural College for the year ended June 30, 2020 are official documents prepared in accordance with U.S. generally accepted