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FINANCIAL STATEMENTS
Presented By: David Boling
Associate Comptroller for Financial Reporting and Analysis
25 July 2007
Why Produce Financial Statements?
To provide financial information to the University’s constituencies, which include the State (taxpayers), donors, and grantors
To provide management information to University leaders so that they can make decisions
Transactions
Every transaction processed in every module ultimately ends up on one or more lines in the financial statements
So choosing the right “code” is important (Expenditure type or object code, fund source, etc.)
Transaction FlowTransaction Flow
PTAEO – COADetail Summary
INSTITUTIONAL
REPORTS
Exp
endi
ture
Bud
get
Revenue
Budget
GrantsAccounting
Internal ServiceProviders (isp)
Deposits
(cash, checks, credit cards)
Accounts Receivable
General
Ledger
PTAEO detail is summarized
Cash Basis versus Accrual
Financial statements must be prepared on the accrual basis of accounting
What’s the difference?....TIMING, meaning which fiscal year should a transaction be reported in? If activity occurred before June 30th, but was paid for after June 30th, then it is (accrued) as June 30th activity
Examples of Accruals: Accounts Payable and “Lag Pay(roll)”
Adjusting Periods
ADJ1 (13th period): Used to update GL for activity that occurred BEFORE June 30th, but for which information was received AFTER June 30th (Ex: Deposits, interest paid)
ADJ2 (14th period): Used to update GL for accrual transactions
GASB Reporting Model
Governmental Accounting Standards Board (GASB) sets accounting and financial reporting rules for governments, including public higher education institutions
FASB sets standards for private higher education institutions
GASB changed its financial statements model to be more like the FASB model, beginning in FY02
Who’s Included in UVa’s Financial Statements?
Academic Division Medical Center (hospital) UVa College at Wise
But NOT the University’s Foundations (more on them later)
Timeframe for Financial Statements
June 30: Fiscal year ends July to August: Accruals, allocations, and other
adjustments generated, and put into ADJ1 and ADJ2 GL periods
Mid Aug to mid Sept: Draft financial statements produced and analyzed
Early Sept: Med Center and foundations submit their financial statements
Sept 27, 2007: Financial Statements completed and submitted to the State
UVA’s Financial Statements
1. Statement of Net Assets (Balance Sheet)
2. Statement of Revenues, Expenses, and Changes in Net Assets (SRECNA)
3. Cash Flow Statement