These increases were largely due to additional federal funds supported expenditures related to COVID-19. The large expenditures in the primary areas of instruction, research, and student services, in conjunction with minimal increases to fixed cost areas, confirms the University resource allocations are clearly aligned with the University's strategic priorities to support academic and student excellence.
The net loss from operations for the year amounted to ($31.2) million. Nonoperating revenues, net of expenses, amounted to $36 million, resulting in an increase of net position of $4.8 million for the year. Nonoperating revenues include state appropriations of $25.9 million and nonoperating federal grants and contracts of $5.4 million.
Kentucky State University is a component unit of the Commonwealth of Kentucky.
The Statement of Cash Flows presents information related to the University's cash inflows and outflows summarized by operating activities, noncapital financing activities, capital financing activities and investing activities. The primary purpose of the Statement of Cash Flows is to provide information about the cash receipts and cash payments made by the University during the year, to allow financial statement readers to assess the University's ability to generate future net cash flows, its ability to meet obligations as they become due and its possible need for external financing.
Condensed Statement of Cash Flows
| 2021 | 2020 | |
| Cash (used) provided by: | ||
| Operating activities | $ (31,847,180) | $ (22,787,888) |
| Non-capital financing activities | 33,441,957 | 31,301,874 |
| Capital and related financing activities | (3,656,280) | (9,309,928) |
| Investing activities | 671,159 | 1,032,291 |
| Cash and cash equivalents, beginning year | 3,145,854 | 2,909,505 |
| Cash and cash equivalents, end of year | $ 1,755,510 | $ 3,145,854 |
Major sources of cash received from operating activities are student tuition and fees of $14.8 million and grants and contracts of $23 million. Major uses of cash for operating activities were payments to employees for salaries and benefits of $44.9 million and to vendors and contractors of $23.2 million.
Noncapital financing activities included state appropriations from the Commonwealth of Kentucky of $25.9 million.
Capital and related financing activities include purchases and payments of $3.7 million expended for construction and acquisition of capital assets and for principal and interest payments on the retirement of the University's bonds and other capital related debt.
State appropriations represent approximately 30.6% of all operating and nonoperating revenues. The level of state support is a key factor influencing the University's overall financial condition. State appropriation is unrestricted to revenue and is included as nonoperating revenue. State appropriations are used to support payroll and benefits for University employees.
11.