Financial Statements: The Valley Of The Sun United Way

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Analysis of Financial Statements Arthur Westbrook, Lindsey Collins, Shannon Sherwood, Wendy Lacey-Mckane, Wileysha Foster BSHS 373 February 24, 2013 Mary Pat Caskey Within a nonprofit organization there are many finances that must be accounted for. To do this they will keep different statements that cover each division of the organization that they may have. The Valley of the Sun United way has four different statements that they break down there dividends in. They have a statement for cash flow, functional expenses, activities, and there overall financial position. With the statements available for all to see answering some questions to better understand them will be helpful for…show more content…
57). To figure out the contribution ratio one must divide the largest revenue source by the total revenues (Martin, 2001, p. 57). Valley of the Sun United Way’s largest funding source is from grants totaling 30,903,947 and the total revenue in 2012 was 63,588,104 (Ernst & Young, 2012, p. 4). The ratio is calculated at .48 which is still on the safe side. An agency should not be .5 or higher because then they would be too dependent on one source (Martin, 2001, p.…show more content…
SWOT stands for strengths, weaknesses, opportunities, and threats. When making the SWOT analysis it is important to consider both internal and external factors. Strengths A great strength for Valley of the Sun United Way (VSUW) is their deep roots in the community. This organization has been serving Maricopa County since 1925 (Valley of the Sun United Way, 2013). Another immense strength for VSUW is the high percentage of revenue that is invested in programs to help the community. According to VSUW (2013) “less than 10 percent [of revenue] is spent on administrative costs with 90 percent invested in local programs and initiatives” to help those in need in the community. Weaknesses In preparing financial statements often times management has to make estimates on the numbers (Valley of the Sun United Way, 2013). This is a weakness because the “actual results could differ from the estimates” (Valley of the Sun United Way, 2013). Another weakness is that this non-profit “invests excess cash in investment grade marketable solutions” (Valley of the Sun United Way, 2013). With this type of investments there are risks involved. The risks and changes could also affect the numbers on the financial

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