Internal and external stakeholders (i.e. suppliers, creditors, state and federal agencies) use financial statements to analyze financial position of the entity and depend on it make informed decisions. Financial condition and performance of the university will be official reported through these reports, concluded all actual transactions booked by departments feed into the external financial statements.

Usually, there are three main statements of most universities are the Balance Sheet, Income Statement, and Cash

Flow Statement. However, according to the GASB-mandated, most U.S. universities include the Management Discussion and Analysis, contained in the financial statements in narrative form, with simple illustrations and financial information not contained in the financial statements, while also highlights various note-worthy elements of the financial reports in the context of the university’s mission and goals.

• Balance Sheet or Statement of Net Position

The statement reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position as of the end of the fiscal year, with comparative information for the prior fiscal year. Overall, it presents the university’s financial position.

• Income Statement or Statement of Revenues, Expenses, and Changes in Net Position

This report shows the university’s revenue streams, along with expenses supported by that revenue, along with with comparative information of the net position for the prior fiscal year.

• Cash Flow Statement

The reports depicts information about cash inflows and outflows during the fiscal year, compare with the prior year, includes reports the major sources and uses of cash.

Holyfield, T. (n.d.). Procurement Toolkit. Procurement toolkit. Retrieved May 2, 2023, from http://workday.preview.yale.edu/APToolkit/#/

Indiana University. (n.d.). Annual Financial Report 2021-2022. Retrieved May 2, 2023, from https://evpfa.iu.edu/doc/reports/fy2022.pdf

Office of the University Controller. (n.d.). Financial Statements. Retrieved May 2, 2023, from https://controller.iu.edu/compliance/fiscal-officer/accounting-standards/financial-statements

Smith, D. O. (2019). University finances: Accounting and budgeting principles for higher education. Johns Hopkins University Press. Created from iub-ebooks on 2023-02-10

USAID. (n.d.). PHER Vietnam - M5 Finance. PHER VIETNAM - M5 Finance. Retrieved May 2, 2023, from https://www.phervietnam.org/run-a-university/m5-finance