Considering A Job At An Institution

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When considering a job at an institution, it is important to review their financial statements and make educated deductions regarding the financial health of the organization. The Statement of Revenues and Expenses that the County Museum of Wonder (CMW) has shared does leave many questions unanswered, especially considering that there only two years shown on this document; consequently, we are limited as to what speculations may be reasonably asserted regarding long-term trends. Despite these limitations, there is a wealth of important information that can be teased out from this statement that provides an informative snapshot of the CMW’s financial health. In the CMW’s favor, there are a number of significant trends that are indicative…show more content…
A reduced reliance on grants is a prudent financial step considering the staff hours required to procure grants and the grant-specific limitations on how institutes can utilize the funds. In the current year, earned revenue constitutes 29.9% of total revenue, which is in line with national averages for earned revenue in private nonprofit museums in the United States. While this is a radical drop from last year’s earned income, a closer look at the sources of the prior year’s earned income sheds some light on the reason for this change. A large number of investments were sold in the prior year, most likely to offset what would have been an even larger deficit; continued sales of investments is not a sustainable earned income strategy, but rather a bailout strategy employed in response to some sort of financial crisis that affected the CMW in the prior year. In the current year we see a modest uptick in program revenue (15.2%), a significant uptick in admissions revenue (197.9%), and radical growth in special events revenue (862.6%).
As we turn to the expenditure page of the statement we find more promising trends. Support expenses have been reduced by 32.4% and program expenses reduced by 33.9%, for a total expenditure reduction of 33.2%. Administration costs saw a significant reduction of 44% from the prior year. In the prior year administration constituted 24.7% of total expenditures and in the current year administration costs are down to 20.6%.
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