In comparing the names of Revenue types between AU and ASU, what is similar and what is different between the names of different Revenue types and what does this tell you about the type of institution?

For this assignment, you will read 2022 budget summaries from two different universities and answer a set of questions below about how the budgets are the same and how they differ. After reading the budget summaries from American University (AU) and Arizona State University (ASU) (located in the Budget Case Study #1 Instructions folder in Week 7), answer the questions below. Budget Comparison Questions Revenues: [note: for AU, use Revenue and Expenditures (net) on page 6; ASU is only reported in net]

1. In comparing the names of Revenue types between AU and ASU, what is similar and what is different between the names of different Revenue types and what does this tell you about the type of institution?

2. Which school made more revenue on Auxiliary revenue in 2022 and by how much?

3. Which school had the biggest decrease in a revenue category from 2021-22 and what was it?

4. Which school had the biggest increase in a revenue category from 2021-22 and what was it?

5. What is Endowment Income and where does it come from?

6. What is the difference between Unrestricted Gift Income and Restricted Gift Income? Expenses:

7. In comparing the names of Expense types between AU and ASU, what is similar and what is different between the names of different Expense types and what does this tell you about the type of institution?

8. For 2022, as a percentage of full-time salaries, which school spent less on benefits and by how much?

9. For 2022, after salaries, what is the next largest expense for each school?

10. Both AU and ASU had income from radio stations; for 2022, who made more and by how much?

11. For 2022, how much did each school spend on Library Acquisitions/Support?

12. How can Financial Aid be both a revenue and expense?

Summary:

13. What insights did you gain from analyzing the two budgets?

14. Is one university in a better position financially than the other; if yes, explain why.

15. After reviewing these budgets, list three questions you have about budgets.

This assignment is worth 200 points.

7 Budget Case Study #1 Assignment Submission link.

References

https://www.azregents.edu/sites/default/files/reports/budget-asu-fy-2022.pdf https://www.american.edu/finance/budget/upload/budget-report-fy2022.pdf

Sample Solution

1. In comparing the names of Revenue types between AU and ASU, what is similar and what is different between the names of different Revenue types and what does this tell you about the type of institution?

Similar: Both universities report Tuition and Fees and State Appropriations as their two largest sources of revenue.

Different: AU reports a higher percentage of its revenue from Tuition and Fees (77%) compared to ASU (34%). AU also reports revenue from Endowment Income, while ASU does not. ASU reports revenue from Sales and Services of Auxiliary Enterprises, while AU reports revenue from Auxiliary Enterprises and Investment Income.

This suggests that AU is a private institution that relies heavily on tuition revenue and has a significant endowment, while ASU is a public institution that relies on state funding and revenue from auxiliary services such as housing, dining, and parking.

2. Which school made more revenue on Auxiliary revenue in 2022 and by how much?

ASU made more revenue on Auxiliary revenue in 2022, reporting $464 million compared to AU’s $76 million.

3. Which school had the biggest decrease in a revenue category from 2021-22 and what was it?

AU had the biggest decrease in Endowment Income, reporting a decrease of $28 million from 2021 to 2022.

4. Which school had the biggest increase in a revenue category from 2021-22 and what was it?

ASU had the biggest increase in Sales and Services of Auxiliary Enterprises, reporting an increase of $32 million from 2021 to 2022.

5. What is Endowment Income and where does it come from?

Endowment Income is income generated from an institution’s invested endowment funds, which typically come from donations, bequests, or other gifts.

6. What is the difference between Unrestricted Gift Income and Restricted Gift Income?

Unrestricted Gift Income can be used for any purpose at the institution’s discretion, while Restricted Gift Income is restricted for use in a specific area or project as specified by the donor.

7. In comparing the names of Expense types between AU and ASU, what is similar and what is different between the names of different Expense types and what does this tell you about the type of institution?

Similar: Both universities report similar expense categories such as Salaries and Wages, Employee Benefits, Supplies and Services, and Utilities.

Different: AU reports expenses for Scholarships and Fellowships, while ASU reports expenses for Scholarships and Student Aid. AU also reports expenses for Athletics, while ASU reports expenses for Intercollegiate Athletics.

This suggests that AU places a greater emphasis on supporting academic achievement through scholarships and has a stronger athletic program, while ASU places a greater emphasis on providing financial aid to students.

8. For 2022, as a percentage of full-time salaries, which school spent less on benefits and by how much?

ASU spent less on benefits as a percentage of full-time salaries, reporting …..NEED A COMPREHENSIVE ANSWER? POST YOUR ORDER