Essentials of Accounting for Governmental and Not-for-Profit Organizations 10th Edition by Paul Copley, John Engstrom

Exercise 1

Obtain an annual report from a public college or university and answer the following questions:
a. Does the institution report as a special-purpose entity engaged in (1) governmental- and business-type activities or (2) business-type activities only Are the financial statements appropriate, based on the choice made by the institution (The remaining questions assume the institution reports as a special-purpose entity engaged only in business-type activities.)
b. Does the institution report a Statement of Net Assets Are net assets separated between (1) invested in capital assets, net of related debt, (2) restricted, and (3) unrestricted List the major restrictions. Is the statement reported in a classified format Does the institution report component units What are they Note the balance of unrestricted net assets. Is the number negative Look at the number shown for compensated absences. Would that change your opinion of the financial status of the institution
c. Does the institution report a Statement of Revenues, Expenses, and Changes in Net Assets If so, is a measure of operations (such as operating income) reported Are scholarships and fellowships, for which no service is provided, deducted from student tuition and fees Is the state appropriation for operations shown as a nonoperating revenue Are operating expenses reported by object classification or by function Are capital appropriations, capital gifts and grants, additions to permanent endowments, and any special or extraordinary items shown after non-operating revenues (expenses) Does the statement reconcile to the ending net assets figure
d. Does the institution report a Statement of Cash Flows Is the direct method used, as required by GASB Are the four categories required by GASB shown If not, which is not shown Are interest receipts shown as cash provided by investing activities and interest payments shown as cash used for financing activities Are capital assets acquired shown as cash used for financing activities Is a reconciliation schedule prepared, reconciling operating income to cash provided (used) for operations Is the state appropriation for operations shown as cash provided by financing activities