acc533 university of trent

This case illustrates financial management and control issues in a not-for-profit setting. It focuses on the systems that can be employed for control and motivational purposes and the managerial environment needed for serious control efforts to take place.

Learning objective: To understand how control systems and financial analysis support the objectives of the organization.

After reading the case, prepare a 2-4 page written response to answer the following questions:

  1. Analyze the financial position of the University of Trent using the data in Exhibit 1A and 1B.
    1. Comparison of 19X5 to 19X6
    2. Common-size balance sheets for the two years
    3. Trend analysis for Revenues and Expenses 19X2 to 19X6
    4. Common-size trend analysis for Revenues and Expenses 19X2 to 19X6
    5. Ratios
  2. Evaluate Chip’s performance in terms of the technical quality of the changes he made and the methods he used to implement them.
  3. Do you think Chip’s overall performance is helpful to the University of Trent? Why? If you think his performance is less than perfect, specify how he should change it.
  4. Are the University of Trent’s goals consistent with the financial resources it needs to finance them? Explain.
  5. Is the University of Trent maintaining intergenerational equity? Explain.
    1. Is there an appropriate match between the sources of resources and the uses to which they are put? Explain.
    2. Are present resources sustainable? Explain.

Note: Be sure that you specifically answer the questions in your response.

 
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