Slides for Class 5 and 6 H ADM 545 February 7th and 14th, 2002 The 4 key financial statements in an accounting entity’s financial history

Introduction to Financial Statements How the Omega Health Foundation (OHF) displays its Financial status and productivity to the general public

Synopsis of Chapter 5 on Financial Statements Organizational Structure Notes to combined statements for OHF Balance sheet Statement of Revenues and Expenses Statement of Cash Flows Statement of changes in Unrestricted Net Assets

OHF’s Organizational Structure Omega Institute of Psychiatry Omega Psychiatric and Psychological Associates Omega Medical Management Inc. Omega Psychiatric and Psychological Associates Omega Institute of Psychiatry

Notes to combined statements for OHF Basis for Presentation Summary of significant Accounting Policies Third party agreements Charity care, community expense, and Bad debt Property, Plant and Equipment and Accumulated Depreciation and amortization

Notes to combined statements for OHF (continued) Long-Term debt Funds held by trustees Retirement Programs Insurance coverage Restructuring costs

Balance sheet Assets Current Assets Property, plant and equipment Assets that have limited use Other Assets –Investments –Deferred financial costs –Intangible assets: goodwill Liabilities + Net Assets Current Liabilities Non-current Liabilities –Long term debt –Accrued retirement costs –Accrued insurance costs –Deferred third party payments + Unrestricted net assets

Statement of Revenues and Expenses Revenue –patient services revenue –other revenues –non-operating gains (losses) Operating Expenses –salaries and wages –fringe benefits –professional fees –supplies –interest on borrowed capital –bad debt expense –depreciation and amortization –restructuring costs

Statement of Cash Flows ( Sources of cash compared to Uses of Cash) (Cash coming into OHF minus cash going out) Cash flows from operating activities and gains and losses Cash flows from investing activities Cash flows from financing activities = Net (decrease) increase in cash and cash equivalents from beginning to end of year

Statement of changes in Unrestricted Net Assets Balance of Unrestricted Net Assets at the beginning of the fiscal year + Excess of revenues over expenses + Change in net realized gains and losses on other than trading securities + Decrease in unrecognized net periodic pension cost = Balance of Unrestricted Net Assets at the end of the fiscal year.