office of the senior associate vice president for finance financial statement presentation:...
TRANSCRIPT
Office of the Senior Associate Vice President
for Finance
Financial Statement Presentation:Functional Expenses
Finance Directors Meeting
May 18, 2010
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 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
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 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
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 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:
(in thousands) 2009 2008 Instruction and academic support $475,675 $445,224 Research and research support 148,073 159,559 Auxiliary enterprises 84,944 80,170 Student services 81,324 76,749 Institutional support 102,799 85,302 Independent operations 42,783 40,281 Student aid 17,748 15,983 Total $953,346 $903,268
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 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
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 6
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 7
Commonly Used Functions
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.
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 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
Office of the Senior Associate Vice President
for Finance
Proprietary and Confidential Page 9
Questions???
Contact Information:Sharon Heinle
Assistant Comptroller6-1087