Photo: Jenny Gignoux, Ghana

Financial Statement Review

Mr. Stuart Mackenzie Director of Financial Reporting University of British Columbia 3

Objectives Why financial statements important? Review UBC’s statements Difference between profit and cash Profit and loss key measures Importance of budgets Balance Sheet key measures 4

University of British Columbia Established ,000 students over two campuses Top 40 in world rankings Major research programs ($500 million) Faculties – Medicine, Science, Arts, Commerce 5

UBC’s financial statements 6

UBC financial statements Statement of Operations –Revenue sources –Expenses –Surplus before capex Statement of Financial Position –Cash (see cash flow) –Investments –Endowments –Deferred contributions Statement of Cash Flow Notes to financial statements 7

Cash or profit? 8

Profit & Loss Statement Revenue –Key business driver –Source of growth –Identify lines of business –Volume/price Expenses –Variable (cost of sales, margins) –Fixed (overhead) Interest Taxes 9

Budgets 10

Balance Sheet Cash –Cash flow statement Working capital –Short-term liquidity (12 months) Other assets and other liabilities –What are they? 11

Conclusion Cash is king! Revenue is business driver Cost structure (variable/fixed) Budgets (targets improve performance) If it doesn’t make sense, ask. 12

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