comparison of public and private universities following are the operating statements 643378

Comparison of Public and Private Universities. Following are the operating statements for a public and private university. The operating statements have been adapted from the annual reports of a public and a private university. As would be expected, the reports are somewhat different. Boca Bay State College has an enrollment of 28,980 students and Von College has an enrollment of 20,100 students.

VON COLLEGE Statement of Activities for Year Ended June 30, 2011 (amounts in thousands)
	Unrestricted		Temporarily Restricted		Permanently Restricted	Totals
Revenues
Tuition and fees		$494,729	—		—	$ 494,729
Less: Scholarships		(173,659)	—		—	(173,659)
Net tuition and fees		321,070	—		—	321,070
Contributions		28,121	$17,443		$ 45,135	90,699
Grants and contracts		66,730	—		—	66,730
Investment revenue		21,361	112		403	21,876
Net realized and unrealized gains on investments		83,655	—		168	83,823
Auxiliary enterprises		141,910	—		—	141,910
Other		16	—		—	16
Net assets released from restrictions		14,508	(14,508)		—	—
Total revenues		677,371	3,047		45,706	726,124
Expenses
Instruction		265,946	—		—	265,946
Sponsored research		48,331	—		—	48,331
Academic support		77,969	—		—	77,969
Student services		40,541	—		—	40,541
Institutional support		67,475	—		—	67,475
Auxiliary enterprises		144,013	—		—	144,013
Total expenses		644,275	—		—	644,275
Change in net assets before cumulative effect of change in accounting principle		33,096	3,047		45,706	81,849
Cumulative effect of change in accounting principle		(24,083)	—		—	(24,083) 57,766
Change in net assets		9,013	3,047		45,706
Net assets at beginning of year		845,610	35,936		358,121	1,239,667
Net assets at end of year		$854,623	$38,983		$403,827	$1,297,433
BOCA BAY STATE COLLEGE Statement of Revenues, Expenses, and Changes in Net Assets for the Year Ended September 30, 2011 (amounts in thousands)
Operating Revenues
Tuition and fees (net of scholarship allowances of $36,632)				$ 160,978
Federal grants and contracts				78,826
State grants and contracts				67,742
Auxiliary enterprises				83,482
Other operating revenues				14,596
Total operating revenues				405,624
Operating Expenses
Compensation and benefits				380,516
Scholarships and fellowships				13,812
Supplies and services				175,326
Depreciation				32,306

Total operating expenses				601,960
Operating loss				(196,336)
Nonoperating Revenues (Expenses)
State appropriations				247,895
Gifts				26,591
Net investment income				44,912
Interest expense				(10,167)
Nonoperating revenues				309,231
Income before other changes in net assets				112,895
Other Changes in Net Assets
Capital appropriations				104
Capital grants				19,051
Additions to permanent endowments				237
Change in net assets				132,287
Net assets—beginning of year				856,857
Net assets—end of year				$ 989,144

Required

a. List some of the differences you observe in the formats of the two operating statements.

b. What portion of the total revenues of Boca Bay State College comes from tuition and fees? From state appropriations? From gifts and contributions? How do those amounts compare to those for Von College?

c. What portion of all of Boca Bay State College’s gifts, grants, and contracts is in the form of endowments? How does that amount compare to the portion of gifts, grants, and contracts in the form of endowments at Von College? Can you tell how much each college earns on its endowments?

d. Which college’s financial operating performance for the year appears to be better? Explain your answer.

comparison of public and private universities following are the operating statements 643378

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