Preparing financial statements and communicating key financial information is a necessary accounting function. Statements are management tools used in making decisions, in monitoring the success of financial objectives and as a standard method for providing information to interested parties external to the organization. These statements may be audited or unaudited depending on the requirements or usage by outside creditors, the governing body or internal management. The financial statements may reflect year-to-year historical comparisons or the current year's budget to actual comparisons.
The statement of revenues, expenses, and changes in net position (income statement) presented according to program revenue and cost centers reflects the financial activities of a period. Another view of financial activities is through a detail of each cost center by line items. A statement of net position (balance sheet) presenting assets, liabilities and net assets provides a financial picture of an organization as of a particular date.
In designing and distributing statements and reports some items to consider are:
The University prepares accurate monthly financial reports in accordance with GAAP and distributes them promptly to management. These statements will summarize all expenditures and receipts for the period covered and compare them to the approved budget.
The Finance Committee of the Board meets quarterly to review financial reports and monitor the fiscal operations of the University. The Finance Committee includes the most current financial reports in its report at each Board Meeting.
Responsible position(s):
Required documents and access:
Frequency and timing:
Steps: