The difference between cost and market value of endowment investments is significant for many colleges and universities. These investments should always be reported at market value to provide relevant, comparable, consistent, and understandable financial information. Nonmanagement users of institutional financial statements prefer market rather…

Explains to college/university business officers how to comply with Governmental Accounting Standards Board Statements Nos. 34, 35, and 9, which require the direct method of presenting cash flows from operating activities and reconciliation of operating cash flows to operating income by fiscal year 2001. Institutions are urged to begin immediately…

It is argued that colleges and universities can use direct allocation costing to provide quantitative information needed for decision making. This method of analysis requires institutions to modify traditional ideas of costing, looking to the private sector for examples of accurate costing techniques. (MSE)

Two accounting strategies for classifying college or university endowment losses are compared: reduction of permanently restricted net assets and reduction of unrestricted net assets. The approaches differ in their effects on classification of net assets only when capital losses on endowment investments bring the fund below the level required in…

A discussion of the Financial Accounting Standards Board's new accounting standard No. 117, which concerns colleges and universities as nonprofit organizations, looks at new provisions and reporting requirements. Methods for producing the required cash flow statement are outlined, and the use of cash flow ratios is examined. (MSE)

Summarizes highlights of the Government Accounting Standards Board's proposed standard for college and university accounting, known as GASB 35. Topics addressed include enterprise fund financial statements, reporting of state appropriations, segment reporting, effective dates, and infrastructure assets. (MSE)

It is argued that recent changes in accounting standards only change the way in which institutions of higher education report finances, not necessarily the way transactions are accounted for. While fund accounting may no longer be an appropriate term for the accounting approach used, it represents appropriate concepts of stewardship and…

Planning for and implementing the Financial Accounting and Standards Board's Statement of Financial Accounting Standards for nonpension retirement benefits gives colleges and universities an opportunity to assess and revise their retiree health benefit plans. However, assessment of the current plan, objectives of changes, projected impact, and…

An effort to enhance quality and efficiency at the University of Florida was designed to produce quick results without involving many employees and focused on the accounts payable department. Flowcharting identified inefficiencies and pinpointed opportunities for improvement in labor-intensive processes, mailings, check registers, reports,…

Modifications to current methods of calculating and reporting financial ratios are outlined for college managers. The modified ratios, felt to be more realistic, are illustrated with applications in three areas: (1) student revenues; (2) endowment and other investment income; and (3) public and private gifts, grants, and contracts revenue. (MSE)

The need for information controls for college records management programs and the elements of program organization, planning, and management are discussed. Conditions at institutions that indicate a flaw in information control are identified, along with the benefits of a sound records management program. The management of an information and…

Information on three categories of deferred gifts, deferred gift valuation, and reporting on deferred gifts are presented, based on the NACUBO publication entitled "Management Reporting Standards for Educational Institutions: Fund Raising and Related Activities." In addition, a summary is presented of the results of a 1982 informal…

It is argued that colleges and universities have created extremely complex and convoluted accounting/reporting systems using fund accounting. Recent changes in accounting standards should be seen as an opportunity to streamline many of the processes that have been designed to support funds, allowing introduction of other approaches. (MSE)

Issues that colleges and universities must address in implementing the Financial Accounting Standards Board's Statements of Financial Accounting Standards 116 (concerning contributions received and made) and 117 (for nonprofit organizations) are outlined. The overall objective is to present a financial statement in a format that tells the…

The first two stages of the financial audit required by federal Circular A-133, for nonprofit institutions receiving $100,000 or more in federal funding and cost-type contracts, as implemented by the University of Southern California, are described. Audit observations, issues emerging from the experience, and recommendations for other colleges and…