1. Learning Team Assignment: Analysis of Financial Statements
· Resource: Valley of the Sun United Way Web site located at http://www.vsuw.org/
· Complete the following using the two years of audited financial statements for the Valley of the Sun United Way:
1) Where do you see major increases or decreases in line items?
2) What internal or external factors might have caused those changes in the line items over the course of the year?
3) What is your hypothesis for the changes? Consider both macro and micro possible causes.
4) Acting as a financial analyst, what questions would you ask Valley of the Sun United Way’s CFO regarding the changes in the organization’s financial statements over the years? Why is it important that you ask financial questions of the organization?
5) Use at least four financial ratios as performance measures of the organization. Refer to Ch. 5 of Financial Management for Human Service Administrators.
6) Provide a SWOT analysis to complete your financial analysis. Identify the strengths, weaknesses, opportunities, and threats to the organization and justify your analysis.
The Valley of the Sun United Way is a nonprofit funder of health and human services for Maricopa County, Arizona. The organization has helped to address community needs for 85 years. Through building partnerships with local individuals, businesses, and other nonprofit agencies to help in several critical areas of community need such as, an end to hunger, an end to homelessness, improving financial stability for families, and ensuring child and youth educational success. For a nonprofit organization like the Valley of the Sun United Way, analysis of financial statements can help to ensure that the mission and goals of the organization are working. The subjects discussed in this paper will include increases and decreases in line items, internal, and external factors that can cause these changes, a hypothesis for these changes, questions that may be asked regarding the financial statements, performance measures, and a SWOT analysis.
Analysis of Financial Statements Paper
In reviewing the Valley of the Sun United Way Statements of Financial Position it was found to have several increases and decreases in comparing the fiscal years of 2010 and 2011. There may be various reasons regarding why the organization increases were clearly projected during the fiscal year of 2011 verses the fiscal year of 2010. The economy and resources may have had a detrimental effect on the financial status of the organization. The organization has to take into account for the potential loss of state funding, grant renewals, and uncollectible pledges and donations.
Line item assets were lower in 2011 from