Financial Health of Lee College
May 23, 2011
Obtaining regular health checkups is vital to our survival; these checkups are necessary to monitor, maintain and improve our health. Did you know that it is equally important to perform periodic checkups on your company? Financial statements are a key component that allows us to track a company’s overall health and progress.
Being able to prepare some of the financial statements for Lee College as well as completing the required readings and assignments from our text book, Essentials of Accounting for Governmental and Not-for-Profit Organizations, gave me the opportunity to analyze the data as it was being put together. It allowed ...view middle of the document...
After completing the Statement of Activities, I was able to use the information from that statement to draft the second required statement, the Statement of Revenues, Expenses, and other Changes in Unrestricted Net Assets. Upon completing the Statement of Revenues, Expenses, and other changes in Unrestricted Net Assets, I was able to finish up the required statements and draft the Statement of Changes in Net Assets.
Once all statements were completed I was able to analyze the financial reports to find that Lee College appeared to be on the right track. Although the majority of the assets were tied up in permanently restricted accounts, Lee College was successfully able to cover the expenses of the college for the given period of time. Lee College did not appear to have an abundance of undistributed funds which shows their resources were being used wisely.
According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).
Throughout this class we were introduced to a number of financial statements, many of which I never knew existed. It was nice to see that the formatting...