Obtain an annual report from a public college or university and answer the following questions:
a. Does the institution report as a special-purpose entity engaged in (1) governmental- and business-type activities or (2) business-type activities only? Are the financial statements appropriate, based on the choice made by the institution? (The remaining questions assume the institution reports as a special-purpose entity engaged only in business-type activities.)
b. Does the institution report a Statement of Net Position? Is the statement in a classified format? What are the categories of Net Position reported on the Statement? List the major restrictions appearing in restricted portion of Net Position. Is Unrestricted Net Position a positive or negative amount?
c. Does the institution report a Statement of Revenues, Expenses and Changes in Net Position? If so, is a measure of operations (such as operating income) reported? Are scholarships and fellowships, for which no service is provided, deducted from student tuition and fees? Is the state appropriation for operations shown as a non operating revenue? Are capi-tal appropriations, capital gifts and grants, additions to permanent endowments, and any special or extraordinary items shown after non operating revenues (expenses)?
d. Does the institution report a Statement of Cash Flows? Is the direct method used, as required by GASB? Are the four categories required by GASB shown? If not, which is not shown? Are interest receipts shown as cash provided by investing activities and interest payments shown as cash used for financing activities? Is a reconciliation schedule prepared, reconciling operating income to cash provided (used) for operations? Is the state appropriation for operations shown as cash provided by financing activities?