Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
47 Cards in this Set
- Front
- Back
|
Economic conditions impact: |
resources and costs |
|
|
Examples of political factors impacting universities |
mandates and regulations legislative interest in various issues prioritization of limited gov resources |
|
|
excise tax |
cigarettes, alcohol, firearms |
|
|
when unemployment increases, what decreases? |
indiv income payroll corporate income |
|
|
entitlement spending (mandatory spending) |
social security medicaid medicare |
|
|
what % of fed budget is discretionary (what higher ed is fighting for) |
10% |
|
|
interest on natl debt |
15% |
|
|
where does most of Colorado general fund revenue come from |
indiv income sales |
|
|
price vs cost of college |
price= The amount students and their families pay for education cost = The amount institutions spend to provide education to students |
|
|
example of mandate or regulation that can impact univ |
ADA compliance, mission as research institution |
|
|
Why does it cost so much? |
Personnel- benefits Facilities regulatory costs H&S, grant compliance, CORA technology goods and services |
|
|
public university funding model- main funding sources |
grants/contracts tuition state support |
|
|
private university funding model- main funding sources |
endowments research support tuition |
|
|
fund accounting advantages and disadvantages |
adv: improved control/oversight increased efficiency in financial reporting dis adv: transactional complexity |
|
|
fund accounting |
A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purposes of carrying on specific activities or attaining certain objectives in accordance with special regulations or limitations. |
|
|
Fund groups |
unrestricted auxillary restricted plant endowment |
|
|
E&G funds are usually what type |
unrestricted |
|
|
examples of restricted funds |
grants contracts gifts |
|
|
plant funds |
new buildings, remodel projects (not gen operating costs), accounting for debt we use to pay for buildings |
|
|
endowment FUNDS |
donor money invested in markets |
|
|
GAAP |
Generally Accepted Accounting Principles -standardized accounting practices |
|
|
which form of GAAP do each private and public institutions use? |
Private: FASB Public: GASB (gov accounting standards board) |
|
|
common fiscal year dates |
july1- june30 oct1-sept30 |
|
|
Accrual Basis |
revenue is counted when its earned, not when its in the door (tuition revenue until student has been educated) expenses calculated when the event has been incurred, not when cash has been paid out (ex. if buy furniture, wont count until has been delivered) |
|
|
Balance sheet |
a statement of the financial position of an entity as of a certain point in time |
|
|
what do public vs private institutions call balance sheets |
statement of net assets (pub) statement of fin position (priv) |
|
|
what are the components of a balance sheet |
assets liabilities equity (fund balance. net assets) |
|
|
balance sheet equation |
assets= liabilities + equity what you have = what you owe +what you own (price of house minus mortgage) |
|
|
income statement |
measures the results of operations of an entity over a period of time. tells you how you did from one balance sheet to another |
|
|
public vs private names for income statement |
statement of revenue, expenses, and change in net assets (pub) statement of activities (private) |
|
|
income statement equation |
revenues - expenses = net income |
|
|
pendulum of regulation |
bad stuff happens, gov clamps down, time goes by, people forget and complain about regulations, pendulum swings other way and regualtions lifted |
|
|
SOX practices |
Sarbanes-Oxley Act- leaders are responsible for finances, whether they know about shenanigans or not. Practices serve as internal controls |
|
|
who is ultimately responsible for internal controls |
management |
|
|
components of an internal control system |
1. control environment 2.risk assessment 3. control activities 4. information and communication 5. monitoring |
|
|
example of control environment |
tone at the top, foundation for all others |
|
|
example of risk assessment |
identification/ analysis of relevant risks |
|
|
example of control activities |
policies and procedures (authorization, employee hiring, documentation) |
|
|
what 3 things should be handled by 3 different people in cash handling |
authorization, recordkeeping, custody |
|
|
example of monitoring |
assess quality of systems performance over time (controls may lose effectiveness) |
|
|
limitations of internal control |
judgement is invovled control brakdowns occur management override cost v benfit |
|
|
a budget is a financial representation of _________ |
the strategic plan |
|
|
budgets serve as quasi _____ between management and operating units |
contracts |
|
|
pro forma |
A financial representation of an institution’s projected or estimated financial position at a future poin tin time. |
|
|
estimated budget in a year equation |
current financial position + budgeted (projected) activity = where you think youll be in a year |
|
|
a budget is an indicator of risk ____ |
tolerance (the way you budget indicates how much risk your institution is willing to take) |
|
|
common types of budgets |
operating (3&G) auxiliary capital (building/infrastructure) special purpose (gifts/grants/research projects) |
