Valley of the Sun Team Paper

2125 WordsJul 20, 20139 Pages
Financial Review: Valley of the Sun United Way Oprah Alexander, Michael Bellamy, Michelle Harrell, Patty Riddle, Latoya Stinson, & Marinda Thomas BSHS/373 June 30, 2013 Dr. Jason Rhoades Financial Review Analysis Financial statements are vital for organizations to predict future profitability. Financial analysis is the evaluation of data to assist in investment and making financial decisions. Throughout this paper team “B” will cover different aspects from the Valley of the Sun United Way’s financial statements. In their financial statements we will review internal and external factors that may have affected them over the course of the fiscal year. We will also review any major increases or decreases they have experienced and…show more content…
For 2012 Valley of the Sun United Way had 2.4 and in 2011 2.6 which means there was a decrease but all in all it was higher than the required ratio which worked in their favor. Revenue/expense ratio is utilized to determine if an organization is breaking even or are in the surplus or in the deficit. According to the 2012 statement Sun Valley United Way revenue/expense ratio was 1.0 meaning it was equal and in 2011 it was 1.1. According to Martin (2001), “If we follow the advice of Hertzlinger and Rittenhouse, the revenue/expense ratio should be greater than 1.0 in order for a human service agency to develop a contingency fund. While no exact cutoff point exists, the revenue/expense ratio should not be inordinately high.” Fundraising/Expense Ratio for Valley of the Sun United Way was in compliance with what is expected of an organization. The expense did not over exceed either year to where it would have to be questioned if they were putting more money into fundraising then they were their programs. In 2012 and 2011 Valley of the Sun United Way ratio was at 0.1 which is way below .15 which would be on the lines for concern. SWOT Analysis of the Valley of the Sun United Way In looking at the financial
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