ERIC Number: ED114001
Record Type: RIE
Publication Date: 1975-Jun
Reference Count: 0
Analysis and Interpretation of Financial Data.
Robinson, Daniel D.
NACUBO Professional File, v7 n3 Jun 1975
Understanding the financial reports of colleges and universities has long been a problem because of the lack of comparability of the data presented. Recently, there has been a move to agree on uniform standards for financial accounting and reporting for the field of higher education. In addition to comparable data, the efforts to make financial reports more understandable require the use of other kinds of statistical data which, when related to financial data, make interpretation, analysis, and understanding of financial data easier to achieve. It must, at all times, be remembered that an educational institution does not have the same characteristics as a business enterprise. Financial statements must be written in language understandable to the lay person, and must take into account that the institutions employ three major resources: money, people, and facilities. These resources have meaning in relation to the primary functions of the institution: instruction, research, and public service. Finally, financial data should be reported in absolute and relative terms, i.e., a year-end balance sheet with the totals of revenues and expenditures; and a comparison with a standard, norm, guideline, forecast, prior year, or other point of reference. The use of relationships in analysis and interpretation of the data enables the reader to judge the relative financial health of the institution. (JMF)
Descriptors: Accounting, Administration, Annual Reports, Educational Finance, Evaluation Methods, Financial Policy, Higher Education, School Accounting
National Association of College and University Business Officers, One Dupont Circle, Washington, D.C. 20036
Publication Type: Journal Articles
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.