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Financial Statement Presentation: Functional Expenses PowerPoint Presentation
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Financial Statement Presentation: Functional Expenses

Financial Statement Presentation: Functional Expenses

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Financial Statement Presentation: Functional Expenses

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  1. Financial Statement Presentation:Functional Expenses Finance Directors Meeting May 18, 2010

  2. Functional Expenses Defined • Categorization of expenses based on purpose for which expense is incurred (e.g., Instruction, Student Aid) rather than the type of expense (e.g., Salary, Supplies) • FASB/AICPA require only broad categories of “Program” and “Supporting Services” • Program - the activities that result in goods and services being distributed to beneficiaries, customers, or members that fulfill the purposes or mission for which the organization exists • Supporting Services - all activities of a not-for-profit organization other than program services Proprietary and Confidential

  3. Why is this important? • Functional expenses reported in variety of places: • Financial Statement Footnotes (GAAP requirement) • IPEDS • Form 990 • Ad hoc surveys • Interested stakeholders • Board/Management • Donors • Faculty • Students • Regulators Proprietary and Confidential

  4. GW’s Financial Statement Presentation Note 13 – Program and Supporting Activities Expense The Consolidated Statements of Activities include the following program and supporting activity expenses for the years ended June 30, 2009 and 2008, respectively: Proprietary and Confidential

  5. How we identify functional categories • The EAS account string: UN..617002.C100001.G.ADM.FB.000000.000000 http://financeoffice.gwu.edu/comptroller/fss/docs/NaturalAccounts.pdf • EAS provides initial grouping of expenditures in designated ‘buckets’ • Some groups are combined or allocated for reporting • Analytical review for consistency and reasonableness Proprietary and Confidential

  6. Proprietary and Confidential

  7. ACS – Academic Support ADM – Institutional Support (aka “Admin”) AUX – Auxiliary Enterprises INP – Investment Properties (Independent Operations) INS – Instructional & Department Research SP# – Sponsored Projects (direct expenses) SPA – Sponsored Project Administration STS – Student Services STA – Student Aid Allocated Functions: MOP – Maintenance/Operation of Plant CAP – Capital Expenditures DSV – Debt Service TEC – Technology Allocated Functions require rational and consistent basis for spreading expenses across the reported program and supporting services. Commonly Used Functions Proprietary and Confidential

  8. Where do you come in? • Requesting new orgs • Consider ‘primary’ functional activity • Segregating new/significant activities • Academic Advising • GWorld 2.0 initiative • Unified Web Presence • Sustainability • Identifying shifting focus in existing orgs • Both C and R funds Proprietary and Confidential

  9. Questions??? Contact Information:Sharon HeinleAssistant Comptroller6-1087sheinle@gwu.edu Proprietary and Confidential