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Hello I did a research paper and I want help in doing the conclusion aspect. Attached is my write up and i want the conclusion to be base on my write up. will be great full for any help


Running head: GOVERNMENTAL AND NONPROFIT UNIVERSITIES Government and Nonprofit Universities:

 

A Short History 1 GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

2 Introduction

 

From the start of the Greek Empire, with famous scholars like Plato, Aristotle, and Socrates, until

 

current day higher education has played a role in civilization. Today, higher education takes on the form

 

of Post-Secondary education. Traditionally, only the wealthy were able to attend private Post-Secondary

 

schools, but following many reforms it has become increasingly accessible to people of all income levels.

 

An example of this can be seen with the creation of numerous community colleges throughout the US

 

[Eck16]. While European history runs deep with notable colleges that are over a few hundred years old

 

the United States (US) history is still fairly young for the most part. Nonetheless, as a nation, US higher

 

education has always been a part of our roots. In fact, the first college in the American Colonies began in

 

1636 [ASH06]. That is 159 years before we declared our independence from the British and became the

 

great nation we are today.

 

Over time universities have expanded both publicly and privately. Today there are thousands of

 

post-secondary educational systems in the United States alone. Even though public and private

 

universities are similar in providing further educational studies to their students, both have their

 

differences based on their: accreditation, population demographics, growth, finances and of course their

 

governmental relationship. As presented below, while both public and private universities do share the

 

same general mission, they are very different when it comes to their accounting framework based on

 

reporting and recognizing of revenue and expenditures. For instance, public universities follow the

 

financial reporting that is similar to the government entities. While private universities follow the

 

financial reporting that is similar to other not-for-profit organizations.

 

Some of the differences might not seem like a big deal. It does pose challenges to both private

 

and public universities. For instance, in recent years for-profit universities are getting tightly regulated by

 

the US Government due to the grants and financial assistance provided to the students that attend these

 

universities. The other potential challenges will be discussed. GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

3 History

 

In the last couple of centuries, the growth of public and private universities has grown

 

exponentially since the Colonial Era in the United States. Public universities have evolved into one of the

 

most significant social institutions of contemporary society. Our country?s public colleges and

 

universities have democratized higher education, extending the opportunities for a college education to all

 

citizens and research to serve the diverse needs of society, and engaging with local communities and

 

regions to provide the knowledge and services critical to economic prosperity, public health, and national

 

security.

 

Throughout the latter half of the twentieth century public and non-profit higher education

 

flourished, sustained by strong social policies, public funding, and economical donations from

 

investments in non-profit aimed at providing educational access and opportunity to a growing population.

 

The higher education system has been molded and influenced by a variety of historical forces. During the mid-1990s public educational institutions in many states faced increasing stringent state legislatures

 

that minimized the budgets of higher education institutes. Historically what role has the government has

 

in maintaining the higher education system? The federal government has long provided substantial

 

funding for higher education spending that has surpassing state spending as the main source of public

 

funding in higher education.

 

The role of state governments in maintaining public colleges and universities dates back to the

 

nation?s inception. Colleges and universities can be divided in broad categories of public and private nonprofit. The public institutions range from community colleges to large research institutions while nonprofit institutions that typically receive a portion of funding from state and local governments. Private

 

non-profit institutions include selective ivy leagues and are given tax-preferred status. When choosing a

 

college/university in the United States it?s so important to understand all of the options: such as public or

 

private vs. location, costs, and program of study. GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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Most public universities are different from other government institutions based on how they are

 

funded. Most do not budget by fund. Universities are to use the Financial Accounting Standards Board?s

 

(FASB?s) categories of restrictiveness for external reporting; however, they can use the American Institute

 

of CPAs model funds structure for internal accounting and reporting only [Gra16]. Public universities are

 

also likely to have an auxiliary enterprise such as bookstores and dormitories that are engaged in a

 

business type activity. Due to these and some other activities public universities have a choice of

 

reporting as special-purpose entities engaged only in business-type activities, as special-purpose entities

 

engaged in governmental activities, or in both (Granof et al, p. 590). Both private and public universities

 

are also required to show their tuition revenues net of discounts and net of estimated uncollectible

 

amounts. Instead of writing off uncollectable amounts as bad debt expense, they have to adjust their

 

revenue by reducing the estimated uncollectible amount (Granof et al, p. 598).

 

Both governmental and non-governmental universities have the same practices of classifying

 

revenue by sources such as tuition and fees, endowment, revenues from auxiliary enterprises or through

 

government appropriations. Both types of universities also classify expenses by function such as

 

academic support, student services and institutional support (Granof et al, p. 596). The National

 

Association of College and University Business officers (NACUBO) defines scholarship allowances as

 

the difference between the stated tuition charges and the actual amount paid by students. If the difference

 

is due to employee reduction the balance should be charged as a compensation expense. The same applies

 

for those differences due to graduate assistantship expenses as well as work-study programs. On the other

 

hand, if the reduction is not due to service related to the university, such as athletic scholarship, the

 

balance should be offset by a reduction in revenue (Granof et al, p. 599).

 

While most colleges and universities are clearly either public or private. Some, however, face an

 

accounting and reporting identity crisis. Private not-for-profit colleges and universities are subject to the

 

same FASB standards as are other not-for-profit entities. As pointed out in the previous section, most

 

government colleges and universities exercise the GASB Statement No. 34 option that permits them to GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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account for their activities in enterprise funds. Therefore, inasmuch as both government and not-for-profit

 

colleges and universities account for their activities on a full accrual basis, the differences are likely to be

 

less pronounced as they were when they used different models.

 

Colleges and universities are unique institutions that differ from other governments in how they

 

are funded and managed. For example, although colleges and universities have both restricted funds and

 

auxiliary enterprises, most do not budget by fund. (Granof et al, p. 589). More state legislatures are

 

seeking and holding public colleges to higher standards by implementing accountability regulations that

 

tie some funding to the performance of the institution. Nonprofit (Public) Universities in the US

 

Nonprofit colleges and universities sometimes receive unfavorable criticism from individuals and

 

groups who believe public universities/colleges are not as thorough or prestigious as their private

 

university and college counterparts. In any case, state universities and colleges offer numerous focal

 

points that may not be accessible at private universities and colleges. Private colleges tend to be smaller

 

and oriented towards specific degrees within a specific subject area while public colleges offer a variety

 

of degrees within numerous subject areas. This typically means public colleges have much larger

 

campuses and many more students. Public colleges are also likely to receive government funding.

 

Public institutions are regularly led by administrators, personnel and staff. These leaders are

 

frequently under the heading of a Board of Trustees. Public institutions usually offer low educational

 

costs to in-state and out-of-state students. The institutions are philanthropic organizations that

 

traditionally received a vast majority of their subsidizing from state government. According to one study,

 

public colleges ?received an average of 21 percent of their funding from state funds and 16 percent of

 

their funding from the federal government? [Woo15]. They also depend on educational costs they receive

 

for tuition and fees as well as grants, donations, and endowments. As of late as states have cut their

 

instruction spending plans to fix their budgets. GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

6

 

Accreditation is a way of certifying that a school or program meets a required academic standard.

 

It is very important to know that a college or university is accredited. Here, most public universities are

 

regionally accredited. This means that the institution has maintained, and will maintain, the standards

 

requisite for its graduates to gain admission to other reputable institutions of higher learning or to achieve

 

credentials for professional practice. Regional accreditation agencies are recognized by the US

 

Department of Education to accredit degree granting colleges and universities and the goal of

 

accreditation is to ensure that education provided by institutions of higher education meets acceptable

 

levels of quality. If you attend a college or university that is not accredited, you will likely be unable to

 

transfer your credits to an accredited college or university.

 

The number of degrees is another thing to consider when looking at public universities. Unlike

 

private universities, public universities and colleges can be huge. Academic programs range from

 

traditional liberal arts to highly specialized technical fields which may focus on engineering and computer

 

science. In general, public universities tend to offer a wider range of courses, degree programs and

 

activities than private colleges. They are generally less expensive to attend as well.

 

With a large student population comes a large student activities list. Smaller colleges usually offer

 

less than 50 student organizations. However, large public universities can easily have hundreds of

 

established student organizations, ranging from general interests to very specific focuses. Most students at

 

public institutions will not need to spend the time starting their own organizations because they will be

 

able to find anything they are looking for at a public university.

 

Many of the public institutions have name recognition in their area, and many are known

 

nationally. Numerous companies come to public universities/colleges seeking future interns and

 

employees for their companies or organizations. Students can meet these employers on campus at career

 

fairs, in career centers, or even through introductions from their professors. GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

7 Problems facing Nonprofit and Government Universities

 

Since the early 2000's, universities and colleges in the United States have been having a difficulty

 

earning and growing their revenue base to keep up with rising costs. The primary reasons for the lack of

 

revenue is a decline in enrollment and a decline in funding from the states [Sel13]. As State governments

 

continue struggling to balance their budgets, their allocation to their public universities has continued

 

sliding down. As pointed out by the American Association of State Colleges and Universities (2012) the

 

year 2011 turning point in which the major funding source for American public universities shifted from

 

the states backed by taxpayers to tuition payment of students and parents. Reasons for the decline in

 

enrollment include an improving economy, in which the unemployed are going back to work instead of

 

utilizing education in order to obtain a job, and a cost-value analysis that questions the investment in a

 

degree at today's prices. States are reducing appropriations to public colleges and universities due to tax

 

revenue decreases and the decision to create budget cuts instead of reducing spending and increasing

 

revenues [Mit16]. To compensate for this loss in revenue, educational institutions have acquired large

 

amounts of debt.

 

The magnitude of the impact regarding funding also differs depending on the type of university.

 

Research public universities are believed to be the hardest hit which would have an adverse impact on the

 

overall research outcome for the country. According to Peter Gwynne, a contributing editor at the

 

industrial research management institute, noted that public universities educate 85% of the undergraduate

 

students and 70 % of the graduate students enrolled in all research universities in the US [Gwy10]. The

 

research also indicated that 62% of all federally financed research is performed by public universities.

 

A number of groups are working to find a way to address these funding issues that public

 

universities face. Some suggest an improved public-private partnership while others suggest aligning the

 

public universities objectives with those of the state. One of these efforts built on performance based

 

funding was led by the Lumina Foundation for Education. The foundation focuses more on finding new GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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ways of servicing more students and producing quality education within the existing budgetary

 

constraints [Har11]. Colleges have also taken on the issuance of bonds and taking out loans.

 

According to (Seligo, 2013), colleges and universities have nearly doubled "the amount of debt

 

they've taken on in the last decade to fix aging campuses, keep up with competitors and lure students with

 

lavish amenities". Bonds issued by many colleges and universities have poor ratings. Moody's Investors

 

Service (2015) just recently increased their outlook for the U.S. higher education sector from negative to

 

stable, citing continuing fiscal challenges such as keeping expenses low and being able to invest

 

adequately. Many colleges and universities have closed, merged with other educational institutions, or

 

transitioned to a for-profit platform or have been bought by a for-profit school [Sel13]. Good investment

 

returns are a large part of Moody's upgrade in ratings, due to an upswing in the economy. Modest growth

 

of 3% in revenues and increases in reserves and endowments also contributed to the upgrade.

 

Earlier this month, NACUBO members had a discussion on Capitol Hill regarding Federal

 

policies that impact higher institutions as well as their students and families. Some of the discussions

 

were about how institutions are affected by recent government less appropriations and its impacted on

 

higher institution. Cost drivers in the sector were also raised (NACUBO, 2016). During these discussions,

 

NACUBO noted that there seems to be a tendency of law makers towards making an effort to work on tax

 

reform and reauthorization of higher education act (HEA) in the near future[Nat16]. According to

 

NACUBO (2016), there are ?efforts to reauthorize HEA will focus on making college more affordable,

 

providing students with better information about college costs and student aid, and increasing

 

instructional accountability for student access and success.?

 

FASB recently has issued a new standard for not-for-profit financial reporting: Topic 958. Topic

 

958 is applicable to colleges and universities for FY19. Early adoption of the standard is also allowed.

 

The update is an effort to try to address the issues on the current reporting requirements for not-for-profit

 

entities. One of the major changes is replacing the three classes of net assets currently in use by two GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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classes; net assets with donor restrictions and net assets without donor restrictions. Also, this update

 

relieved the requirement of disclosing the indirect method reconciliation for those not-for-profit entities?

 

statement of cash flows prepared under direct method. Regarding investment returns, not-for-profits are

 

no longer required to disclose netted expenses when reporting investment return. Investment returns are to

 

be reported net of external and direct internal investment expenses (FASB, 2016). Concluding Thoughts GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

10 References American Association of State Colleges and Universities. (2012). Top 10 higher education state policy

 

issues for 2012. Retrieved from AASCU: http://www.aascu.org/policy/publications/policymatters/previous-years/

 

ASHE. (2006, February 1). From the beginning: development of for-profit higher education in the united

 

states. ASHE Higher Education Report, 31(5), pp. 13-24.

 

Brubacher, J. S., & Rudy, W. (1997). Higher education in transition: a history of american college and

 

universities. London: Transaction Publishers.

 

Duderstadt, J. J., & Womack, F. W. (2004). The future of the public university in america: beyond the

 

crossroads. Baltimore: Johns Hopkins University Press.

 

Eckel, P. D., & King, J. E. (2016). An overview of higher education in the united states: diversity, access,

 

and the role of the marketplace. Retrieved from ACENET: http://www.acenet.edu/newsroom/Documents/Overview-of-Higher-Education-in-the-United-States-Diversity-Access-and-theRole-of-the-Marketplace-2004.pdf

 

Financial Accounting Standards Board. (2016, August). Accounting standard update (ASU) No. 2016-14.

 

Retrieved from FASB: http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?

 

cid=1176168381847&acceptedDisclaimer=true

 

Granof, M. H., Khumawala, S. B., Calabrese, T. D., & Smith, D. L. (2016). Government and not-forprofit accounting (7th ed.). New York: Wiley. GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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Gwyne, P. (2010). Public universities face funding crisis. Research Technology Management, 53(5), pp. 45. Retrieved from http://ezproxy.umuc.edu/login?

 

url=http://search.proquest.com.ezproxy.umuc.edu/docview/751976825?accountid=14580

 

Harnis, T. L. (2011). Performance based funding: a re-emerging strategy in public higher education

 

financing. Retrieved from AASCU: http://www.aascu.org/policy/publications/policymatters/previous-years/

 

Mitchell, M., Leachman, M., & Masterson, K. (2016). Funding down, tuition up. Retrieved from Center

 

on Budget and Policy Priorities: http://www.cbpp.org/research/state-budget-and-tax/fundingdown-tuition-up

 

National Association of College and University Business Officers. (2016, October 3). NACUBO members

 

discuss college cost drivers on capitol hill. Retrieved from NACUBO:

 

http://www.nacubo.org/Initiatives/Legislation_and_Congressional_Relations/Legislative_Updates

 

/NACUBO_Members_Discuss_College_Cost_Drivers_on_Capitol_Hill.html

 

Seligo, J. J. (2013, April 13). Colleges struggling to stay afloat. Retrieved from The New York Times:

 

http://www.nytimes.com/2013/04/14/education/edlife/many-colleges-and-universities-facefinancial-problems.html?_r=0

 

Sharma, P., & Fitzgerald, S. I. (2015). Modest revenue growth supports table outlook for us higher

 

education in 2016. Retrieved from Moody's Investors Service:

 

https://www.moodys.com/research/Moodys-Modest-revenue-growth-supports-stable-outlook-forUS-higher--PR_340333

 

Woodhouse, K. (2015, June 12). Impact of pell surge: federal spending has overtaken state spending as

 

the main source of public funding in higher education. Retrieved from Inside Higher Ed: GOVERNMENTAL AND NONPROFIT UNIVERSITIES

 

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https://www.insidehighered.com/news/2015/06/12/study-us-higher-education-receives-morefederal-state-governments

 


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Hello I did a research paper and I want help in doing the conclusion aspect. Attached is my write.zip

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