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