#1We'll get you there. CPAs | CONSULTANTS | WEALTH ADVISORS West Virginia University Audit Presentation Year Ended June 30, 2023 Don Loberg, Principal Chris Knopik, Principal Daniel Persaud, Principal ©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 1#2Overview ©2023 CliftonLarsonAllen LLP Audit Results State of Higher Education 2#3West Virginia University Audit Results Summary Opinion • Unmodified Opinion - highest level of assurance Adjustments and Results ©2023 CliftonLarsonAllen LLP • No material audit adjustments 3#4Research Corporation Audit Results Summary Opinion Unmodified Opinion - highest level of assurance Unmodified Opinion – compliance with Uniform Guidance Adjustments No material audit adjustments and Results No Findings relating to compliance issues causing material financial impact ©2023 CliftonLarsonAllen LLP 4#5Internal Control Reporting- Definitions and Results West Virginia University Research Corporation No material weaknesses No material weaknesses No significant deficiencies No significant deficiencies Material Weaknesses - deficiencies in internal control such that there is a reasonable possibility that a material misstatement would not be prevented or detected and corrected on a timely basis. Significant Deficiencies - deficiencies in internal control that are less severe than material weaknesses, yet important enough to merit attention by those charged with governance. ©2023 CliftonLarsonAllen LLP 5#6We'll get you there. CPAs | CONSULTANTS | WEALTH ADVISORS State of Higher Education West Virginia University ©2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 6#7Current Financial Influences in Higher Education B Enrollment pressures SA $ HEERF Hangover ©2023 CliftonLarsonAllen LLP Turnover and COP employee retention Increasing costs - student experience Negative perception of higher education Financial Sustainability 7#8The Financial Story © 2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 8#9Revenue Sources in Public Higher Ed ©2023 CliftonLarsonAllen LLP Auxiliary Net Tuition Revenue Grants and Contracts State Appropriations 9#10Trends: Net Tuition & Auxiliary Revenue Sources 800,000,000 Student Revenue Sources 600,000,000 553,386,000 564,475,000 554,636,000 542,092,000 400,000,000 200,000,000 496,387,000 542,188,000 530,685,000 2017 2018 2019 2020 2021 2022 2023 ©2023 CliftonLarsonAllen LLP 10 10#11Trends: WVU % Tuition Increases and Inflation % 9.00% 8.00% 7.00% 5.71% 6.00% 4.91% 4.83% 5.00% 4.00% 8.20% 6.30% 2.75% 2.50% 1.89% 1.60% 3.00% 2.50% 2.10% 2.00% 1.30% 1.00% 1.40% 0.00% 0.00% 2017 2018 2019 2020 2021 2022 2023 Undergrad Increases Inflation ©2023 CliftonLarsonAllen LLP *InflationSource: BLS.gov 11#12Trend: WVU % Increase and U.S. Food Price Increases 12.00% 10.00% 8.00% 5.71% 6.00% 4.83% 4.91% 4.00% 3.90% 1.60% 1.60% 1.80% 2.00% 1.40% 6.30% 0.00% 10.40% 3.70% 1.89% 2.75% 0.00% 2017 2018 2019 2020 2021 2022 2023 Food Increases Undergrad Increases ©2023 CliftonLarsonAllen LLP 12 12#13Trends: Operating Bottom Line Operating Bottom Line 2018 2019 2020 (50,000,000) (100,000,000) (150,000,000) (200,000,000) (244,889,000) (250,000,000) (300,000,000) (350,000,000) (400,000,000) O2023 CliftonLarsonAllen LLP 2021 2022 2023 (309,528,000) (314,849,000) (265,550,000) (315,871,000) (357,948,000) 13#14Trends: Total Bottom Line 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 8,383,000 41,100,000 6,447,000 127,797,000 45,694,000 672,000 (7,414,000) (20,000,000) 2017 2018 2019 2020 2021 2022 2023 ©2023 CliftonLarsonAllen LLP 14#15High School Graduation Projections 3.93M 4.0M 3.5M Strong production of high school graduates 3.50M for two decades 3.0M 2.69M 2.5M 2.46M 2.0M 1.5M 1.0M 0.5M 0.0M 3.77M Graduation rate increases mitigate contracting youth population Birth declines still predict long- 3.52M term graduate declines 1992 1997 2002 2007 2012 Graduating Class 2017 2022 2027 2032 2037 Class of 2020 to 2025 (projected: increase) Class of 1988 to 2019 (reported) Class of 2026 to 2037 (projected: decrease) Source: Western Interstate Commission for Higher Education, Knocking at the College Door, 10th edition, 2020. See Technical Appendix for detailed sources of data through the Class of 2019; WICHE projections, Class of 2020 through 2037. ©2023 CliftonLarsonAllen LLP 15#16There are opportunities! © 2023 CliftonLarsonAllen LLP. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 16#17Opportunities based on Environment Transfer of Wealth The Culling of institutions ©2023 CliftonLarsonAllen LLP Acceptance and investing in online classes 曲 Acquisitions and mergers Greater collaboration within the system 17#18Questions? TEAM SUCCESS ©2023 CliftonLarsonAllen LLP 18#19• . Governance Communication Letter Overall Provides an update on the audit since the planning meeting Subscription Arrangement implemented No changes in scope of audit Estimates • Depreciable lives . . • • Allowance for doubtful accounts Compensated absences Scholarship allowance Other postemployment benefits liability • Unearned revenue •Fair value of Investments Difficulties • No difficulties encountered • No disagreements encountered No other findings to report Other • No material adjustments recorded • No passed adjustments • Audit reports have been issued ©2023 CliftonLarsonAllen LLP • Net pension items . Functional Expenses (Innovation Corporation) • We are comfortable with management's estimate 19#20$ The information herein has been provided by CliftonLarsonAllen LLP for general information purposes only. 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