3The following two financial statements a statement
Exercise 5.3
The following two financial statements—a statement of activities (profit and loss
summary) and a statement of financial position (balance sheet)—are for the Council
on Social Work Education for fiscal year 1998. (See Tables 5.3 and 5.4.) Review
these two financial statements and compute the following ratios: current ratio,
long-term solvency ratio, contribution ratio, programs/expense ratio, and revenue/
expense ratio.
Comment on each of these ratios. Do the ratios appear high or low? Are the
ratios in keeping with the standards discussed in this chapter? Overall, how would
you describe the financial condition of the Council on Social Work Education? Why
can’t a management and general/expense ratio and fund-raising/expense ratio be
computed?
TABLE 5.3 Council on Social Work Education
Statement of Activities
Year Ended June 30, 1998
Revenue
Membership fees and dues
Contributions and grants
Annual program meeting
Accreditation fees and services
Publication sales
Investment income
Advertising
Other
Total revenue
Expense
Program services:
Accreditation
Annual program meeting
Minority Fellowship
Program—research
Minority Fellowship
Program—clinical
Publications
Social work education and
public human services
Annie E. Casey program
Managed care
Supporting services:
Membership services
Administration
Total expenses
Change in Net Assets
Net assets, beginning of year
Net Assets, End of Year
Unrestricted
$1,613,192
887,385
535,907
316,505
73,491
159,653
26,587
35,765
$3,648,485
$1,236,060
446,313
447,385
207,065
348,028
—
80,439
23,602
$2,788,892
$ 265,507
319,997
585,504
3,374,396
$ 274,089
1,063,898
$1,337,987
Total
$1,613,192
903,871
535,907
316,505
73,491
159,653
26,587
35,765
$3,664,971
$1,236,060
446,313
447,385
207,065
348,028
—
80,439
23,602
$2,788,892
$ 265,507
319,997
585,504
3,374,396
$ 290,575
1,110,128
$1,400,703
Reprinted from the Social Work Education Reporter, Vol. 47, No. 1 (Winter, 1999):23, with permission from
the Council on Social Work Education.
Temporarily
Restricted
$16,486
$16,486
TABLE 5.4 Council on Social Work Education
Statement of Financial Position
June 30, 1998
Assets
Current Assets
Cash and cash equivalents
Marketable securities,
at market value
Accounts receivable, net
of allowance for doubtful
accounts of $38,414
Grants receivable
Due from (to) other funds
Inventory
Prepaid expenses
Total current assets
Furniture and Equipment,
at cost
Less accumulated depreciation
Total assets
Liabilities and
Net Assets
Current Liabilities
Accounts payable and
accrued expenses
Accrued vacation
Due to IASSW
Current maturities
of notes payable
Deferred rent, current portion
Deferred fees and dues
Total current liabilities
Deferred rent, less
current portion
Net Assets
Unrestricted:
Operating
Plant
Board designated
Temporarily restricted
Unrestricted
$ 611,506
1,370,238
160,133
129,982
(62,716)
20,007
19,709
$2,248,859
471,624
(342,535)
129,089
$2,377,948
$ 136,873
82,214
61,285
9,860
109,891
583,322
$ 983,445
$ 56,516
$1,184,776
129,089
24,122
—
$2,377,948
Temporarily
Restricted
$62,716
$62,716
—
$62,716
62,716
$62,716
Total
$ 611,506
1,370,238
160,133
129,982
—
20,007
19,709
$2,311,575
471,624
(342,535)
129,089
$2,440,664
$ 136,873
82,214
61,285
9,860
109,891
583,322
$ 983,445
$ 56,516
$1,184,776
129,089
24,122
62,716
$2,440,664
