3-HVCC Long Form.pdf

HUDSON VALLEY COMMUNITY COLLEGE

AUDITED FINANCIAL STATEMENTS AND

REPORTS REQUIRED UNDER

UNIFORM GUIDANCE

August 31, 2025 and 2024

TABLE OF CONTENTS

Page

Independent Auditor's Report 1-2

Management’s Discussion and Analysis 3-10

Financial Statements Statement of Net Position 11-12 Statement of Revenues, Expenses and Changes in Net Position 13-14 Statement of Cash Flows 15-16 Notes to Financial Statements 17-41

Required Supplementary Information Schedule of the College’s Proportionate Share of the Net Pension Asset

– New York State Teachers’ Retirement System 42 Schedule of College Contributions

– New York State Teachers’ Retirement System 43 Schedule of the College’s Proportionate Share of the Net Pension Liability

– New York State and Local Employees’ Retirement System 44 Schedule of College Contributions

– New York State and Local Employees’ Retirement System 45 Schedule of Changes in the College’s Total OPEB Liability 46 Notes to Required Supplemental Information 47

Other Information Schedule of Revenues, Expenses, and Other Changes by Fund and Reconciliation to Audited Financial Statements (Excluding Discretely Presented Component Units) 48 Schedule of State Operating Aid 49 Reconciliation of Revenues, Expenses, and Fund Balance as Reflected in the Annual Report to the Audited Financial Statements 50 Schedule of State-Aidable FTE Tuition Reconciliation 51

Supplementary Information Schedule of Expenditures of Federal Awards 52 Notes to Schedule of Expenditures of Federal Awards 53

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 54-55

Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance 56-58

Schedule of Findings and Questioned Costs 59-62

An independent member of UHY International

INDEPENDENT AUDITOR'S REPORT

To the Board of Trustees Hudson Valley Community College

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of Hudson Valley Community College (the College), a component unit of Rensselaer County, New York, and its discretely presented component units, as of and for the years ended August 31, 2025 and 2024, and the related notes to the financial statements which collectively comprise the College’s basic financial statements as listed in the accompanying table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Hudson Valley Community College and its discretely presented component units as of August 31, 2025 and 2024, and the respective changes in financial position and cash flows thereof for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the College and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of the Hudson Valley Community College Foundation and Faculty Student Association were not audited in accordance with Government Auditing Standards.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the College’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, no such opinion is expressed.

An independent member of UHY International

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the College’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 10 and other required supplementary information on pages 42 through 47 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the College’s basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual report. The other information comprises the Other Information section on pages 48 to 51 but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 29, 2026, on our consideration the College’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the College’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering College’s internal control over financial reporting and compliance.

Albany, New York May 29, 2026

MANAGEMENT’S DISCUSSION AND ANALYSIS

Introduction

The following management discussion and analysis (MD&A) provides a comprehensive overview of Hudson Valley Community College’s (the College) financial position as of August 31, 2025 and 2024, and the changes in its financial position for the years then ended. Management has prepared this MD&A which should be read in conjunction with the audited financial statements and related footnotes of the College which directly follow the MD&A.

For financial reporting purposes the College consists of the College and its component units, the Capital District Educational Opportunity Center (EOC), the Faculty Student Association (FSA) of Hudson Valley Community College, and the Hudson Valley Community College Foundation (the Foundation). For financial reporting purposes the EOC is considered a part of the College’s primary institution. Readers should refer to the individual financial statements of the other component units for further information on them.

The financial statements of the College have been prepared in accordance with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB). The College complies with GASB pronouncements, which establish accounting and financial reporting standards for public colleges and universities. The objective of these standards is to enhance the understandability and usefulness of the external financial reports issued by public colleges and universities.

Overview of Financial Statements

The financial statement presentation consists of a Statement of Net Position; a Statement of Revenues, Expenses, and Changes in Net Position; a Statement of Cash Flows, and accompanying notes. These statements provide information on the financial position, the financial activities and changes in financial position of the College during the year. A summary of these statements follows:

The Statements of Net Position present information on all of the College’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the net amount reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the College is improving.

The Statements of Revenues, Expenses, and Changes in Net Position present the changes in financial position for the fiscal years. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement include items that will result in cash received or disbursed in future fiscal periods (e.g., the receipt of amounts due from students and others for services rendered, or the payment for accrued compensated absences).

The Statements of Cash Flows provides information on the major sources and uses of cash during the years. The cash flow statement portrays net cash provided by or used for operating, investing, capital, and noncapital financing activities.

Statement of Net Position

The following Condensed Schedule of Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position depict changes in the key components of financial position for 2025 and 2024. During the year ended August 31, 2025, total assets decreased $0.5 million and total liabilities decreased $4.4 million.

Condensed Statements of Net Position August 31, 2025 and 2024

(in millions) Primary Institution

2025 2024

Current Assets 74.4$ 74.4$ Noncurrent Assets:

Capital Assets, net 157.2 159.0 Other 4.4 3.1

Total Assets 236.0$ 236.5$

Deferred Outflows of Resources 10.7$ 13.7$

Current Liabilities 29.4 30.2 Noncurrent Liabilities 63.5 66.4

Total Liabilities 92.9$ 96.6$

Deferred Inflows of Resources 13.2$ 17.8$

Net Position Net Invested in Capital Assets 128.9 127.2 Restricted 0.3 0.5 Unrestricted 11.4 8.1

Total Net Position 140.6$ 135.8$

Assets

Current assets include cash, temporary investments, amounts owed to the College which are expected to be received within the ensuing year, and advance payments made by the College for goods and/or services which will be consumed during the following year. The majority of current assets are cash and cash equivalents.

Cash The College maintains three accounts, an operating account, a payroll account, and a controlled disbursement account at M & T Bank, the College’s primary financial institution.

Investments

During the year, excess college funds were invested in money market accounts and US Treasury bills. The Board of Trustees designates and approves all eligible depositories of College funds.

In fiscal years ended August 31, 2025 and 2024, the College’s investments and surplus funds generated approximately $2,172,000 and $2,350,000 in interest income, respectively.

The increase in interest income is attributable to an increase in overall interest rates.

Total cash, cash equivalents and short-term investments available as of August 31, 2025 and 2024 were approximately $54,460,000 and $59,500,000 respectively.

Noncurrent assets are amounts owed to the College, or advance payments for goods and/or services, not expected to be received by August 31, 2025. Noncurrent assets also include funds obtained through bonding of our capital projects which are being held by Rensselaer County and are expected to be expended after August 31, 2025.

Capital Assets

Capital Assets are the largest contributor to noncurrent assets, which include tangible capital assets, right-to-use lease assets, and subscription-based information technology arrangement (SBITA) assets, and are presented at their value net of depreciation and amortization. The overall value of net capital assets decreased by 1% over the year compared to the prior year. This change is the net impact of a $10.8 million decrease due to depreciation and amortization, partially offset by capital asset purchases.

This information is presented in more detail in Note 5 of the Financial Statements.

Deferred Outflows and Inflows of Resources

The College recognized deferred outflows of resources of $10.7 million and deferred inflows of resources of $13.1 million related to the New York State Teacher’s Retirement System (TRS) and New York State and Local Employees’ Retirement System (ERS) plans and Other Postemployment Benefit (OPEB) plans. In addition, net pension assets and deferred outflows of resources are not available for spending.

The College also recognized deferred inflows of resources related to lease receivables of $0.1 million (see Note 4 for more detail).

Liabilities

Current liabilities represent amounts owed for goods or services received or committed by the College as of August 31, 2025 which will be paid in fiscal year 2025; and payments that have been received by the College for services that will be rendered by the College by August 31, 2025. The largest portion of current liabilities is related to unearned student tuition revenues.

Noncurrent liabilities represent amounts owed for goods or services received or commitments by the College as of August 31, 2025 which will be paid after August 31, 2025. This includes amounts due for post retirements benefits of $8.4 million (see Note 13 for more detail), termination benefits for current employees in the amount of $13.9 million (see Note 12 for more detail), lease liabilities of $7.9 million and subscription liabilities of $0.1 million (see Note 9 for more detail).

Debt obligations incurred by the County and the State in financing the construction and acquisition of campus facilities and equipment are recognized in the accompanying financial statements.

Of the $17.7 million outstanding debt against the net capital assets as of August 31, 2025, debt payments of $1.4 million that are due within one year are classified as current liabilities, and the remaining $16.3 million is reported in the noncurrent liabilities section. Additional information regarding financing agreements related to capital assets can be found in Note 9.

Statement of Revenues, Expenses and Changes in Net Position

Operating results for the College for the years ended August 31 are as follows:

Condensed Schedule of Operating Results

Operating Revenue:

Student Tuition, net 37.7$ 37.8$ Grants and Contracts 5.5 6.0

Total Operating Revenue 43.2$ 43.8$

Less: Operating Expenses 129.2 119.7 Operating Loss (86.0)$ (75.9)$

Non-Operating Revenue (Expenses):

State Appropriations 21.9$ 21.9$ Local Appropriations 32.8 29.1 Grants 25.9 22.2 Interest Expense, Investment Income and Other 1.8 5.0

Total Non-Operating Revenue (Expenses) 82.4$ 78.2$

Capital Appropriations 8.4 8.1

Increase in Net Position 4.8$ 10.4$

Net Position, Beginning of the Year 135.8 125.4

Net Position, End of the Year 140.6$ 135.8$

Operating Revenues

Total operating revenue for year ended August 31, 2025 decreased approximately $0.6 million from the prior year. The decrease is due mainly to grants and contracts.

Student Tuition, Net – In accordance with GASB Statement No. 34, student tuition is reported net of scholarship allowances which were $17.3 million in 2025 and $13.9 million in 2024. The scholarship allowance is the amount of tuition paid by third parties and / or by financial aid.

The following Condensed Schedule of Student Tuition, Net shows the components of net tuition for the years ended August 31:

Condensed Schedule of Student Tuition, Net

2025 2024 Change

Gross Student Tuition 55.0$ 51.7$ 3.3$ Scholarships Allowances 17.3 13.9 3.4

Student tuition, net 37.7$ 37.8$ (0.1)$

Full time equivalent (FTE) enrollments for the three year period 2023 through 2025 are shown in the following schedule:

Enrollment: 2025 2024 2023

Credit Course Enrollment 7,440.8 7,045.9 6,563.5 Non-Credit State Aid Eligible Course Enrollment 26.7 23.9 29.7

Total FTE 7,467.5 7,069.8 6,593.2

Gross Student Tuition increased this year due primarily to increased enrollment.

Operating Expenses

Total operating expenses for year ended August 31, 2025 increased $9.5 million from the prior year. Of the total $129.2 million of operating expenses for 2025, $68.7 million was expended for direct services to students. This data is depicted below in millions of dollars:

Function 2025 2024 Change

Instruction 50.2$ 46.1$ 4.1$ Academic Support 4.4 4.1 0.3 Library 1.1 1.0 0.1 Student Services 7.5 6.8 0.7 Student Aid 5.5 5.8 (0.3)

Direct Services to Students 68.7$ 63.8$ 4.9$ Indirect Services to Students 60.5 55.9 4.6

Total Operating Expenses 129.2$ 119.7$ 9.5$

Direct Services to Students

Instruction – This function includes costs that are directly related to the teaching faculty. This function represents the majority of direct services to students.

Academic Support – Costs incurred in direct support of instruction comprised this expense function. Examples of these costs include, but are not limited to, the academic dean’s offices, learning assistance center and instructional technology.

Library – Costs in this function include books, periodicals, personnel and other contractual expenses required to operate the College library.

Student Services – This function encompasses the funds expended for areas such as admissions, registrar, health services and other offices and/or activities that contribute to the student’s development outside the context of formal instructional settings.

Student Aid – This function reflects financial aid monies refunded to students to meet their non-tuition educational expenses. Student aid decreased $0.3 million from 2024 to 2025.

Indirect Services to Students

Costs incurred in general support of the educational activities of the College are included in this category. Examples of indirect costs include the operation and maintenance of the College’s physical plant, depreciation, and administrative departments, such as Human Resources, Public Safety and all finance and executive offices that serve the entire campus community.

Amounts included as indirect services for the years ended August 31, 2025 and 2024 are shown in the following schedule:

2025 2024 Change

Operation and Maintenance of Plant 17.1$ 15.1$ 2.0$ Institutional Support 19.7 17.7 2.0 Administration 10.5 10.6 (0.1) Amortization 2.4 2.4 - Depreciation 10.8 10.1 0.7

Total Indirect Services to Students 60.5$ 55.9$ 4.6$

Nonoperating Revenues (Expenses)

State and Local Aid and Appropriations – Amounts represent operating aid provided by the State of New York, Rensselaer County (sponsor contribution), and county chargeback revenues. State aid is determined by enrollment computations related to a weighted average of the previous three years, while the sponsor contribution is an amount appropriated by county government.

County chargeback revenues are based on rate computations and enrollment.

Federal Grants and Contracts – Federal appropriations for student aid comprise this revenue category.

State and Local Grants and Contracts – The funds included in this category represent aid to students. New York State Tuition Assistance Program (TAP) funds are included as a State grant as well as Excelsior scholarship funds.

Interest Expense – This amount represents interest expense on debt and leases.

Other Nonoperating Revenues – Amounts include miscellaneous income, indirect cost recovery, sale of service revenues, and facility rental income.

Net Position

Net Position is the difference between all of the College’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net Position as of August 31, 2025 and 2024 totaled $140.6 million and $135.8 million, respectively.

Net Position Net invested in capital assets 128.9$ 127.2$ Restricted for:

Capital projects and debt service 0.3 0.5 Unrestricted 11.4 8.1

Total Net Position 140.6$ 135.8$

Statement of Cash Flows

Highlights of the major sources and uses of cash by the College during the fiscal year are detailed here.

Incoming

The three largest sources of incoming funds to the college are tuition and fee payments, state aid appropriations and county aid appropriations.

Tuition and fees – This figure is reported net of grants and scholarships. It increased from $39.1 million in 2024 to $41.2 million in 2025. The increase is primarily due to increased enrollment.

State aid – Remained constant at $21.9 million in 2024 and $21.9 million in 2025.

County/local aid – County aid was $29.0 million in 2024 and $32.3 million in 2025. The increase is related to an increase of chargebacks

Outgoing

The largest sources of outgoing funds from the college are related to employees, vendors and capital projects.

Payments to employees – primarily composed of salary payments, this amount increased by

$0.3 million dollars from 2024 to 2025.

Payments to suppliers and vendors – increased by $0.2 million from 2024 to 2025. Primarily due to increased spending in grant related expenditures.

Capital financing activities – $7.6 million was used in 2025 while in 2024 $7.1 million was used.

Economic Factors That Will Affect the Future

The College has experienced encouraging enrollment growth following the impacts of COVID-19. Since Fall 2021, headcount has increased from 8,812 to 10,490, exceeding pre-pandemic levels from Fall 2019. This upward trend reflects the strength of the College’s programs and its ability to respond to changing student needs. At the same time, broader macroeconomic conditions continue to shape higher education enrollment patterns and the College’s financial outlook. A strong labor market could lead prospective students to enter or remain in the workforce rather than pursue postsecondary education.

Additionally, persistent inflation—including rising costs for housing, food, transportation, and other essentials—has reduced discretionary income available for education, particularly among the populations most likely to attend community colleges. However, SUNY and New York State continue to make investments to provide pathways to an affordable education.

Economic factors do place pressure on institutional expenses. Salary and benefits, along with an increase cost for goods and services—including growing demand for student support services such as mental health resources—contribute to increases in College operating costs. Declining birth rates may reduce the number of high school graduates over time, while New York State’s projected population decline may shrink the College’s traditional recruitment base. Despite these headwinds, the College is well positioned relative to its peers. The College offers a diverse portfolio of programs, particularly in high-demand STEM and skilled trades fields such as automotive technology, HVAC, and electrical programs. These areas align closely with regional workforce needs and continue to offer strong career outcomes, positioning the College to attract students seeking practical, career-oriented education and workforce advancement.

Technological Advancements

Online Education: The rise of online and hybrid learning continues to reshape higher education. The College is well positioned in this evolving landscape. The College offers a broad portfolio of online degree and certificate programs across disciplines such as business, criminal justice, health sciences, information technology, education, and liberal arts. Many of these programs can be completed fully online with appropriate planning, providing students the ability to learn “anytime, anywhere” while maintaining the same instructional quality as in-person courses. This positions the College competitively as demand for remote and flexible learning continues to grow across the community college sector.

Impact of Artificial Intelligence (AI): AI and other technological innovations are transforming the higher education landscape. The College continues to explore these emerging technologies to remain competitive and responsive to evolving student expectations. The thoughtful adoption of AI and related technologies can support innovation in program delivery, improve institutional efficiency, and help position the College as a forward-looking institution that attracts both traditional and non-traditional students.

See notes to financial statements.

STATEMENT OF NET POSITION

Total

FSA Foundation Reporting

College (May 31, 2025) (June 30, 2025) Entity

ASSETS

CURRENT ASSETS

Cash, cash equivalents and short-term investments 54,460,439$ 9,228,207$ 5,116,485$ 68,805,131$

Accounts receivable, net of allowance of $7,741,747 18,033,616 1,894,980 754,560 20,683,156

Lease receivable 44,941 - - 44,941

Inventories - 321,519 - 321,519

Prepaid expenses and other assets 1,241,192 - 10,834 1,252,026

Investments - 4,747,000 - 4,747,000

Deposits with bond trustees 657,574 - - 657,574

Total current assets 74,437,762 16,191,706 5,881,879 96,511,347

NONCURRENT ASSETS

Investments - - 8,970,644 8,970,644

Lease receivable 39,457 - - 39,457

Deposits with bond trustees 155,167 - - 155,167

Other assets 818,008 - 1,707,235 2,525,243

Net pension asset 3,436,837 - - 3,436,837

Capital assets, net 157,186,175 5,453,333 756,037 163,395,545

Total noncurrent assets 161,635,644 5,453,333 11,433,916 178,522,893

Total assets 236,073,406$ 21,645,039$ 17,315,795$ 275,034,240$

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows related to net pension liability 8,500,521$ -$ -$ 8,500,521$

Deferred outflows related to other post employment benefit obligation 2,156,327 - - 2,156,327

Total deferred outflows of resources 10,656,848$ -$ -$ 10,656,848$

LIABILITIES

CURRENT LIABILITIES

Accounts payable 3,357,922$ 964,313$ 9,990$ 4,332,225$

Accrued expenses 5,985,513 533,879 299,670 6,819,062

Unearned student tuition, fees and other revenue 16,343,046 1,831,750 68,800 18,243,596

Financing agreements 1,423,172 534,135 20,652 1,977,959

Lease liabilities 2,197,920 - - 2,197,920

Subscription liabilities 109,945 - - 109,945

Total current liabilities 29,417,518 3,864,077 399,112 33,680,707

NONCURRENT LIABILITIES

Accrued expenses 4,452,581 - 657,728 5,110,309

Termination benefits for current employees 13,910,759 792,585 - 14,703,344

Financing agreements 16,255,625 2,952,758 405,661 19,614,044

Lease liabilities 7,905,791 - - 7,905,791

Subscription liabilities 80,234 - - 80,234

Net pension liability 12,405,981 - - 12,405,981

Other postemployment benefit obligation 8,490,328 - - 8,490,328

Total noncurrent liabilities 63,501,299 3,745,343 1,063,389 68,310,031

Total liabilities 92,918,817$ 7,609,420$ 1,462,501$ 101,990,738$

DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to net pension liability 4,510,213$ -$ -$ 4,510,213$

Deferred inflows related to other post employment benefit obligation 8,579,363 - - 8,579,363

Deferred inflows related to lease receivable 77,713 - - 77,713

Total deferred inflows of resources 13,167,289$ -$ -$ 13,167,289$

NET POSITION

Net invested in capital assets 128,884,447$ 1,815,550$ -$ 130,699,997$

Restricted for:

Scholarships and fellowships - - 15,615,975 15,615,975

Capital projects and debt service 346,523 - - 346,523

Unrestricted 11,413,178 12,220,069 237,319 23,870,566

Total net position 140,644,148$ 14,035,619$ 15,853,294$ 170,533,061$

August 31, 2025

Component Units

HUDSON VALLEY COMMUNITY COLLEGE

STATEMENT OF NET POSITION

Total

FSA Foundation Reporting

College (May 31, 2024) (June 30, 2024) Entity

ASSETS

CURRENT ASSETS

Cash, cash equivalents and short-term investments 59,535,116$ 8,506,782$ 2,578,903$ 70,620,801$

Accounts receivable, net of allowance of $7,235,342 13,100,725 2,105,490 1,207,710 16,413,925

Lease receivable 42,453 - - 42,453

Inventories - 427,695 - 427,695

Prepaid expenses 1,130,586 - 7,108 1,137,694

Investments - 4,136,000 - 4,136,000

Deposits with bond trustees 638,357 - - 638,357

Total current assets 74,447,237 15,175,967 3,793,721 93,416,925

NONCURRENT ASSETS

Investments - - 7,673,874 7,673,874

Lease receivable 84,398 - - 84,398

Prepaid expenses 15,889 - - 15,889

Deposits with bond trustees 348,010 - - 348,010

Other assets 958,677 - 2,400,848 3,359,525

Net pension asset 1,660,099 - - 1,660,099

Capital assets, net 158,998,991 6,028,423 783,922 165,811,336

Total noncurrent assets 162,066,064 6,028,423 10,858,644 178,953,131

Total assets 236,513,301$ 21,204,390$ 14,652,365$ 272,370,056$

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows related to net pension liability 10,328,848$ -$ -$ 10,328,848$

Deferred outflows related to other post employment benefit obligation 3,380,844 - - 3,380,844

Total deferred outflows of resources 13,709,692$ -$ -$ 13,709,692$

LIABILITIES

CURRENT LIABILITIES

Accounts payable 4,376,973$ 701,649$ 13,009$ 5,091,631$

Accrued expenses 5,458,435 460,088 50,341 5,968,864

Unearned student tuition, fees and other revenue 15,990,336 1,566,286 51,520 17,608,142

Financing agreements 2,090,904 519,727 19,792 2,630,423

Lease liabilities 2,101,241 - - 2,101,241

Subscription liabilities 175,984 - - 175,984

Total current liabilities 30,193,873 3,247,750 134,662 33,576,285

NONCURRENT LIABILITIES

Accrued expenses 4,070,669 - - 4,070,669

Termination benefits for current employees 13,299,897 792,113 - 14,092,010

Financing agreements 17,617,800 3,486,894 423,178 21,527,872

Lease liabilities 10,103,711 - - 10,103,711

Subscription liabilities 190,179 - - 190,179

Net pension liability 9,526,040 - - 9,526,040

Other postemployment benefit obligation 11,635,000 - - 11,635,000

Total noncurrent liabilities 66,443,296 4,279,007 423,178 71,145,481

Total liabilities 96,637,169$ 7,526,757$ 557,840$ 104,721,766$

DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to net pension liability 8,164,046$ -$ -$ 8,164,046$

Deferred inflows related to other post employment benefit obligation 9,478,721 - - 9,478,721

Deferred inflows related to lease receivable 120,102 - - 120,102

Total deferred inflows of resources 17,762,869$ -$ -$ 17,762,869$

NET POSITION

Net invested in capital assets 127,229,370$ 1,845,817$ -$ 129,075,187$

Restricted for: -

Scholarships and fellowships - - 13,243,274 13,243,274

Capital projects and debt service 528,870 - - 528,870

Unrestricted 8,064,715 11,831,816 851,251 20,747,782

Total net position 135,822,955$ 13,677,633$ 14,094,525$ 163,595,113$

August 31, 2024

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

FSA Foundation Total

(Year ended (Year ended Reporting

College (May 31, 2025) (June 30, 2025) Entity

REVENUES

Operating revenues

Student tuition and fees (net of scholarship allowances of $17,302,590) 37,734,204$ 2,944,941$ -$ 40,679,145$

State grants and contracts 5,159,048 - - 5,159,048

Nongovernmental grants and contracts 334,580 - - 334,580

Bookstore - 2,574,465 - 2,574,465

Foodservice and other - 173,335 - 173,335

Day care - 683,339 - 683,339

Other operating revenues - 648,622 216,265 864,887

Total operating revenues 43,227,832 7,024,702 216,265 50,468,799

EXPENSES

Operating expenses

Instruction 50,249,314 - - 50,249,314

Academic support 4,414,820 - 1,160,649 5,575,469

Libraries 1,092,560 - - 1,092,560

Student services 7,462,320 - - 7,462,320

Institutional support 19,804,128 - - 19,804,128

Administration 10,522,430 418,615 396,479 11,337,524

Operation and maintenance of plant 17,094,126 - - 17,094,126

Student bookstore - 2,432,605 - 2,432,605

Child care - 1,020,890 - 1,020,890

Food service - 29,028 - 29,028

Athletics - 1,667,418 - 1,667,418

Student Senate - 797,358 - 797,358

Club Activities - 99,489 - 99,489

Cultural Affairs - 128,658 - 128,658

Student aid 5,467,606 - 697,126 6,164,732

Fundraising and alumni relations - - 505,162 505,162

Graduation - 189,701 - 189,701

Amortization 2,362,158 - - 2,362,158

Depreciation 10,775,934 620,403 - 11,396,337

Total operating expenses 129,245,396 7,404,165 2,759,416 139,408,977

Operating loss (86,017,564) (379,463) (2,543,151) (88,940,178)

NONOPERATING REVENUES (EXPENSES)

State aid 21,896,053 - - 21,896,053

County / local aid 32,754,445 - - 32,754,445

Federal grants and contracts 18,810,797 - - 18,810,797

State grants and contracts 7,094,755 300,125 - 7,394,880

Gifts - - 3,263,735 3,263,735

Investment income, net 2,171,931 489,428 1,038,185 3,699,544

Interest expense on debt and leases (1,056,846) (103,233) - (1,160,079)

Loss on disposal of assets (238,045) - - (238,045)

Other nonoperating revenues 991,422 51,129 - 1,042,551

Net nonoperating revenues 82,424,512 737,449 4,301,920 87,463,881

(Loss) income before capital appropriations (3,593,052) 357,986 1,758,769 (1,476,297)

Capital appropriations 8,414,245 - - 8,414,245

Increase in net position 4,821,193 357,986 1,758,769 6,937,948

NET POSITION

Net position, beginning of year 135,822,955 13,677,633 14,094,525 163,595,113

Net position, end of year 140,644,148$ 14,035,619$ 15,853,294$ 170,533,061$

For the year ended August 31, 2025

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

College May 31, 2024) June 30, 2024) Entity

REVENUES

Operating revenues

Student tuition and fees (net of scholarship allowances of $13,932,784) 37,824,569$ 2,263,699$ -$ 40,088,268$

State grants and contracts 5,426,042 - - 5,426,042

Nongovernmental grants and contracts 585,737 - - 585,737

Bookstore - 2,366,016 - 2,366,016

Foodservice and other - 187,821 - 187,821

Day care - 601,624 - 601,624

Other operating revenues - 652,211 218,149 870,360

Total operating revenues 43,836,348 6,071,371 218,149 50,125,868

EXPENSES

Operating expenses

Instruction 46,093,589 - - 46,093,589

Academic support 4,167,791 - 144,469 4,312,260

Libraries 1,004,510 - - 1,004,510

Student services 6,775,106 - - 6,775,106

Institutional support 17,783,709 - - 17,783,709

Administration 10,588,403 343,817 305,602 11,237,822

Operation and maintenance of plant 15,081,783 - - 15,081,783

Student bookstore - 2,190,642 - 2,190,642

Child care - 910,415 - 910,415

Food service - 24,369 - 24,369

Athletics - 1,075,564 - 1,075,564

Student Senate - 713,056 - 713,056

Club Activities - 94,566 - 94,566

Cultural Affairs - 155,595 - 155,595

Student aid 5,765,779 - 658,516 6,424,295

Fundraising and alumni relations - - 466,023 466,023

Graduation - 176,593 - 176,593

Amortization 2,386,631 - - 2,386,631

Depreciation 10,101,946 614,467 - 10,716,413

Total operating expenses 119,749,247 6,299,084 1,574,610 127,622,941

Operating loss (75,912,899) (227,713) (1,356,461) (77,497,073)

NONOPERATING REVENUES (EXPENSES)

State aid 21,850,512 - - 21,850,512

County / local aid 29,067,741 - - 29,067,741

Federal grants and contracts 15,444,976 - - 15,444,976

State grants and contracts 6,776,180 338,245 - 7,114,425

Gifts - - 3,738,949 3,738,949

Investment income, net 2,349,981 409,165 953,929 3,713,075

Interest expense on debt and leases (1,189,390) (117,586) - (1,306,976)

Loss on disposal of assets - - - -

Other nonoperating revenues 3,936,383 13,892 - 3,950,275

Net nonoperating revenues 78,236,383 643,716 4,692,878 83,572,977

(Loss) income before capital appropriations 2,323,484 416,003 3,336,417 6,075,904

Capital appropriations 8,143,954 - - 8,143,954

Increase in net position 10,467,438 416,003 3,336,417 14,219,858

NET POSITION

Net position, beginning of year 125,355,517 13,261,630 10,758,108 149,375,255

Net position, end of year 135,822,955$ 13,677,633$ 14,094,525$ 163,595,113$

For the year ended August 31, 2024

STATEMENT OF CASH FLOWS

College May 31, 2025) June 30, 2025) Entity

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and fees 38,237,207$ 2,944,941$ -$ 41,182,148$ Grants and contracts 1,347,493 - - 1,347,493 Payments to suppliers and vendors (39,043,120) (4,223,620) (551,261) (43,818,001) Payments to employees (57,020,597) (1,586,629) (365,569) (58,972,795) Payments for benefits (18,567,155) (530,410) (196,845) (19,294,410) Payments for student aid and academic support (5,467,606) - (697,126) (6,164,732) Bookstore - 2,784,975 - 2,784,975 Foodservice - 106,270 - 106,270 Day care - 683,339 - 683,339 Other operating receipts - 981,151 216,265 1,197,416

Net cash (used in) provided by operating activities (80,513,778) 1,160,017 (1,594,536) (80,948,297)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State aid 21,896,053 - - 21,896,053 County/local aid 32,267,618 - - 32,267,618 Gifts - - 4,410,498 4,410,498 Grants and contracts 25,905,552 300,125 - 26,205,677 Other non-operating receipts 991,487 540,557 - 1,532,044

Net cash provided by noncapital financing activities 81,060,710 840,682 4,410,498 86,311,890

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

Capital appropriations 8,414,245 - - 8,414,245 Purchase of capital assets (11,563,322) (45,313) - (11,608,635) Principal paid on debt and leases (4,368,128) (519,728) (19,793) (4,907,649) Interest paid on debt and leases (1,056,846) (103,233) - (1,160,079) Proceeds from capital debt 60,996 - - 60,996 Deposits with bond trustees 719,313 - - 719,313

Net cash used in capital financing activities (7,793,742) (668,274) (19,793) (8,481,809)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sales and maturities of investments - - 4,381,349 4,381,349 Interest on investments 2,172,133 - 333,854 2,505,987 Purchase of investments - (611,000) (4,973,790) (5,584,790) Principal payments received on note receivable - - - -

Net cash provided by investing activities 2,172,133 (611,000) (258,587) 1,302,546

Net increase in cash, cash equivalents and short-term investments (5,074,677) 721,425 2,537,582 (1,815,670)

Cash, cash equivalents and short-term investments, beginning of year 59,535,116 8,506,782 2,578,903 70,620,801

Cash, cash equivalents and short-term investments, end of year 54,460,439$ 9,228,207$ 5,116,485$ 68,805,131$

Reconciliation of operating loss to net cash (used in) provided by operating activities:

Operating loss (86,017,564)$ (379,463)$ (2,543,151)$ (88,940,178)$ Adjustments to reconcile operating loss used in operating activities:

Depreciation 10,775,934 620,403 31,021 11,427,358 Amortization 2,362,158 - - 2,362,158 Changes in assets and liabilities:

Accounts receivable, net (4,446,266) 210,510 - (4,235,756) Inventories - 106,176 - 106,176 Prepaid expenses 45,952 - (3,726) 42,226 Accounts payable (1,564,738) 262,664 (3,019) (1,305,093) Accrued expenses 908,990 73,791 907,059 1,889,840 Termination benefits for current employees 610,862 (41,134) - 569,728 Other postemployment benefit obligation (2,819,513) 41,606 - (2,777,907) Net pension related accounts (722,303) - - (722,303) Deferred revenue 352,710 265,464 17,280 635,454

Net cash (used in) provided by operating activities (80,513,778)$ 1,160,017$ (1,594,536)$ (80,948,297)$

For the year ended August 31, 2025

STATEMENT OF CASH FLOWS

College May 31, 2024) June 30, 2024) Entity

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and fees 36,815,320$ 2,263,699$ -$ 39,079,019$ Grants and contracts 4,016,868 - - 4,016,868 Payments to suppliers and vendors (34,040,855) (3,726,914) (351,080) (38,118,849) Payments to employees (52,591,798) (1,423,908) (336,547) (54,352,253) Payments for benefits (19,063,426) (579,659) (181,218) (19,824,303) Payments for student aid and academic support (5,765,779) - (658,516) (6,424,295) Bookstore - 2,464,078 - 2,464,078 Foodservice - 295,490 - 295,490 Day care - 601,624 - 601,624 Other operating receipts - 773,144 218,149 991,293

Net cash (used in) provided by operating activities (70,629,670) 667,554 (1,309,212) (71,271,328)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State aid 21,850,512 - - 21,850,512 County/local aid 28,988,174 - - 28,988,174 Gifts - - 2,266,876 2,266,876 Grants and contracts 22,221,156 338,245 - 22,559,401 Other non-operating receipts 3,934,095 423,057 - 4,357,152

Net cash provided by noncapital financing activities 76,993,937 761,302 2,266,876 80,022,115

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

Capital appropriations 8,143,954 - - 8,143,954 Purchase of capital assets (10,523,663) (48,184) (3,363) (10,575,210) Principal paid on debt and leases (4,169,678) (505,376) (128,855) (4,803,909) Interest paid on debt and leases (1,189,390) (117,586) - (1,306,976) Proceeds from capital debt 30,105 - - 30,105 Deposits with bond trustees 565,560 - - 565,560

Net cash used in capital financing activities (7,143,112) (671,146) (132,218) (7,946,476)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sales and maturities of investments - 1,769,000 1,482,135 3,251,135 Interest on investments 2,350,172 - 229,515 2,579,687 Purchase of investments - (1,420,000) (1,331,279) (2,751,279) Principal payments received on note receivable - - - -

Net cash provided by investing activities 2,350,172 349,000 380,371 3,079,543

Net increase in cash, cash equivalents and short-term investments 1,571,327 1,106,710 1,205,817 3,883,854

Cash, cash equivalents and short-term investments, beginning of year 57,963,789 7,400,072 1,373,086 66,736,947

Cash, cash equivalents and short-term investments, end of year 59,535,116$ 8,506,782$ 2,578,903$ 70,620,801$

Reconciliation of operating loss to net cash used in operating activities:

Operating loss (75,912,899)$ (227,713)$ (1,356,461)$ (77,497,073)$ Adjustments to reconcile operating loss used in operating activities:

Depreciation 10,101,946 614,467 31,010 10,747,423 Amortization 2,386,631 - - 2,386,631 Changes in assets and liabilities: -

Accounts receivable, net (2,337,585) 98,062 - (2,239,523) Inventories - 46,274 - 46,274 Prepaid expenses (863,704) - 5,561 (858,143) Accounts payable (3,155,970) 69,397 3,301 (3,083,272) Accrued expenses (480,931) (50,373) 18,940 (512,364) Termination benefits for current employees (2,368,589) (39,895) - (2,408,484) Other postemployment benefit obligation (2,020,131) (71,267) - (2,091,398) Net pension related accounts 1,308,366 - - 1,308,366 Deferred revenue 2,713,196 228,602 (11,563) 2,930,235

Net cash (used in) provided by operating activities (70,629,670)$ 667,554$ (1,309,212)$ (71,271,328)$

For the year ended August 31, 2024

NOTES TO FINANCIAL STATEMENTS

AUGUST 31, 2025 AND 2024

NOTE 1 — ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

A. The Financial Reporting Entity

Hudson Valley Community College (the College or Primary Institution), a component unit of Rensselaer County, New York, was established under Article 126 of the Education Act of the State of New York under the sponsorship of Rensselaer County and is operated by a Board of Trustees under Paragraph (C) of Subdivision 6 of Section 6304 of the Education Act of the State of New York.

Title to real property is vested in Rensselaer County (the County) in trust for the use of the College.

The financial statements include the financial position and the changes in financial position and cash flows of the Capital District Educational Opportunity Center (EOC), a division of Hudson Valley Community College that offers tuition-free academic and workforce development opportunities to disadvantaged and educationally under-prepared New York State residents 16 years and older, and TEC- Smart Facility Corporation (the Corporation), a Type C not-for-profit corporation, under Section 201 of the Not-For-Profit Corporation Law established to develop and equip an educational and training facility located on the Saratoga Technology and Energy Park campus.

B. Component Units Disclosure

The financial data of the College's component units are reported in separate columns to emphasize that they are legally separate from the College and include:

1. Faculty Student Association (FSA or the Association)

The FSA is a not-for-profit corporation organized under the Not-for Profit Corporation Laws of the State of New York. The FSA's year end is May 31.

The general purpose of the Association is to establish, operate, manage, promote and cultivate educational activities and relationships incidental thereto by, between and among the students and faculty of the College, and to aid the students, faculty and the administration of the College in the furtherance of their education, studies and work in collaboration and coordination with the educational goals of the College.

2. The Hudson Valley Community College Foundation (the Foundation)

The Foundation is a tax exempt (under IRC Section 501(c)(3)) foundation established to receive and maintain funds to aid and advance the welfare, development, purposes and programs of Hudson Valley Community College and its students. The Foundation’s year end is June 30.

Copies of the component unit separate financial statements are available from the College’s finance department.

C. Basis of Presentation, Measurement Focus and Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles applicable to public colleges and universities.

The College financial statements apply all applicable Governmental Accounting Standards Board (GASB) pronouncements as well as applicable Financial Accounting Standards Board Statements and Interpretations, issued on or before November 30, 1989, unless those…