TABLE 9.4Financial Statement for a Small Nonprofit OrganizationfigureThe profit margin ratio is problematic because the nonprofit had a slight deficit this year. Questions that need to be answered include: Is this loss a one-time event or has this nonprofit been in this situation before? Is this nonprofit building intergenerational equity over time? What is the trend over five or ten years?Looking at the degree of diversity in revenues, the analyst can see that this nonprofit organization depends heavily on government contracts; in contrast, contributions are quite a small proportion of the revenues. Certainly, the nonprofit would benefit from a greater emphasis on contributions.It is possible to conclude that, although the nonprofit does not have immediate concerns about liquidity and solvency, this nonprofit organization needs to stabilize its profit margin and improve its sustainability of resources through revenue diversification. More could be learned through an in-depth examination of the sources and uses of revenue.TABLE 9.5Statement of Financial Position (Balance Sheet) for a Small Nonprofit Organization Current assets      Cash     $271,671Temporary cash investments     619,941Accounts receivable     45,918Pledges receivable     183,962Prepaid expenses     168,270    Total current assets     $1,289,762       Long-term assets      Investments     $2,033,200Land, buildings     1,612,164Other assets     30,751    Total long-term assets     $3,676,115           Total assets     $4,965,877Current liabilities      Accounts payable     $200,000Accrued expenses     48,695Total current liabilities     $248,695Long-term liabilities      Mortgage     $381,458       Total liabilities     $630,153       Net assets      Unrestricted     $2,509,727Temporarily restricted     825,997Permanently restricted     1,000,000    Total net assets     $4,335,724           Total liabilities and net assets     $4,965,877 TABLE 9.6Statement of Activities (Income Statement) for a Small Nonprofit Organization Revenue         Contributions     $565,032   Grants     1,182,215   Government contracts     1,459,639   Fees and membership dues     529,243   Interest and gains     86,637      Total revenue     $3,822,766       Expenses         Salaries     $2,187,465   Benefits     475,454      Total PS     $2,662,919Chen, G., G., Forsythe, W., D., Weikart, A., L., Williams, W., D. (06/2008). Budget Tools: Financial Methods in the Public Sector, 1st Edition. [Strayer University Bookshelf]. Retrieved from https://strayer.vitalsource.com/#/books/9781483304571/

TABLE 9.4Financial Statement for a Small Nonprofit OrganizationfigureThe profit margin ratio is problematic because the nonprofit had a slight deficit this year. Questions that need to be answered include: Is this loss a one-time event or has this nonprofit been in this situation before? Is this nonprofit building intergenerational equity over time? What is the trend over five or ten years?Looking at the degree of diversity in revenues, the analyst can see that this nonprofit organization depends heavily on government contracts; in contrast, contributions are quite a small proportion of the revenues. Certainly, the nonprofit would benefit from a greater emphasis on contributions.It is possible to conclude that, although the nonprofit does not have immediate concerns about liquidity and solvency, this nonprofit organization needs to stabilize its profit margin and improve its sustainability of resources through revenue diversification. More could be learned through an in-depth examination of the sources and uses of revenue.TABLE 9.5Statement of Financial Position (Balance Sheet) for a Small Nonprofit Organization Current assets      Cash     $271,671Temporary cash investments     619,941Accounts receivable     45,918Pledges receivable     183,962Prepaid expenses     168,270    Total current assets     $1,289,762       Long-term assets      Investments     $2,033,200Land, buildings     1,612,164Other assets     30,751    Total long-term assets     $3,676,115           Total assets     $4,965,877Current liabilities      Accounts payable     $200,000Accrued expenses     48,695Total current liabilities     $248,695Long-term liabilities      Mortgage     $381,458       Total liabilities     $630,153       Net assets      Unrestricted     $2,509,727Temporarily restricted     825,997Permanently restricted     1,000,000    Total net assets     $4,335,724           Total liabilities and net assets     $4,965,877 TABLE 9.6Statement of Activities (Income Statement) for a Small Nonprofit Organization Revenue         Contributions     $565,032   Grants     1,182,215   Government contracts     1,459,639   Fees and membership dues     529,243   Interest and gains     86,637      Total revenue     $3,822,766       Expenses         Salaries     $2,187,465   Benefits     475,454      Total PS     $2,662,919Chen, G., G., Forsythe, W., D., Weikart, A., L., Williams, W., D. (06/2008). Budget Tools: Financial Methods in the Public Sector, 1st Edition. [Strayer University Bookshelf]. Retrieved from https://strayer.vitalsource.com/#/books/9781483304571/

Scenario for Assignments 1-5

For Assignments 1-5, you are the new budgeting and finance administrator for your local government agency. Your first responsibility is to become familiar with the agency, the budget, programs, and capital projects. As the administrator, you will be responsible for analyzing, examining, proposing, and preparing the agency’s budget for the next five (5) years.

Note:Students cannot use New York City as a selected local government

Assignment 4:Implementing the Budget

Due Week 9 and worth 125 points

Refer the Scenario for Assignments 1–5. Prepare a variance report for the selected agency. Refer to Table 8.4 in Chapter 8 (page 133).

Write a three to four (3-4) page paper addressing the criteria below. (Note: Change the title of the report to reflect the selected agency’s name and the years to 2013-2014.)

1. Find the variances for both the revenue and expenditures sides and then discuss two to three (2-3) problematic areas for the agency. Provide the results of the variances in a table (Excel or Word).
2. Recommend two (2) policy actions for each problematic area discussed in criterion 1. Justify the recommendations.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Recommend appropriate policy actions based on the evaluation.
• Evaluate a budgeting system at any governmental level.
• Analyze the scope and sequence of budgeting in terms of sources of revenues, purpose of government expenditures, budget cycles, budget preparation, and debt administration.
• Analyze the requirements for implementing a budget.
• Develop various budget charts that represent segments of the budgeting process.

·   Write clearly and concisely about public budgeting and finance using proper writing mechanics.