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

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?

Similarities: Both universities have revenue types labeled as Tuition and Fees, Sales and Services of Educational Activities, and Investment Income.

Differences: AU has revenue types labeled as Grants and Contracts, Gifts and Endowments, and Other Revenue. ASU has revenue types labeled as State Appropriations, Local Appropriations, and Federal Appropriations.

This tells us that both universities have similar sources of revenue, such as tuition and investment income, but ASU receives funding from appropriations from different levels of government while AU receives grants and contracts. This could be due to differences in the size and mission of the universities, with ASU being a larger state university and AU being a smaller private university.

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

ASU made more revenue on Auxiliary revenue in 2022, with $159,824,000 compared to AU’s $45,524,520. ASU made $114,299,480 more in Auxiliary revenue than AU.

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

ASU had the biggest decrease in Investment Income from 2021-22, with a decrease of $60,013,000.

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

AU had the biggest increase in Grants and Contracts from 2021-22, with an increase of $26,041,476.

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

Endowment Income is income generated by the investment of an institution’s endowment fund. The endowment fund is typically made up of donations from individuals, corporations, and other entities, and the income is used to support the institution’s operations and programs.

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

Unrestricted Gift Income is income from donations that the institution can use for any purpose. Restricted Gift Income is income from donations that are designated for a specific purpose or program and cannot be used for other purposes.

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?

Similarities: Both universities have expense types labeled as Instruction, Research, Student Services, and Institutional Support.

Differences: AU has expense types labeled as Academic Support, Public Service, and Auxiliary Enterprises. ASU has expense types labeled as Academic Support Programs, Scholarships, and Operations and Maintenance of Plant.

This tells us that both universities have similar types of expenses, such as Instruction and Student Services, but there are differences in the way they categorize…NEED A COMPREHENSIVE ANSWER? POST YOUR ORDER