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Financial statements reflect
an organization’s actual financial performance. Financial reporting
is not an end in itself. It is intended to provide information that
is useful in making business and economic decisions.
Budgets, which were
discussed in Topics 1 and 2 of the Nellie Mae Education Foundation’s
on-line Financial Management Technical Assistance, are estimates of
revenue and expenditures and are used primarily as internal planning
tools. Financial statements, on the other hand, display funds received and
expensed, can be audited and are used by internal management and external
evaluators to determine the organization’s financial health.
Key financial statements
for every non-profit are:
o Statement of
Financial Position (or Balance Sheet)
o Statements of
Activities and Changes in Net Assets
This topic, will
present these financial statements for the fictional Kids for the Future
non-profit organization and discuss the key ideas behind them. Kids for
the Future (KFF) is a comprehensive youth services program whose budgeting
strategies were used for a model in Topic 2.
To view Kids for the
Future’s Statement of Financial Position, click here.
KFF Statement of Financial
Position
To view Kids for the
Future’s Statement of Activities and Changes in Net Assets, click here.
KFF Statement of Activities
and Changes in Net Assets
To review key ideas about
developing these financial statements, click here.
Developing Financial
Statements
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