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3.10.2

Financial Resources: Submission of financial statements
The institution provides financial profile information on an annual basis and other measures of financial health as requested by the Commission. All information is presented accurately and appropriately and represents the total operation of the institution.

Judgment
  Compliant      Non-Compliant      Not Applicable

Narrative

Internal financial statements are prepared quarterly. Official financial statements are prepared annually and audited by KPMG, a major international accounting firm. Financial audit reports of Morehouse College are presented to the Audit Committee, the Finance Committee, as well as the full Morehouse College Board of Trustees. Financial profile information and other measures of financial health are provided as requested by the Commission.

The College’s financial statements are prepared according to guidelines set by the Financial Accounting Standards Board, (FASB 116 & 117), the National Association of College and University Business Officers, (NACUBO), and the American Institute of Certified Public Accountants (AICPA). The staff of Morehouse College summarizes and prepares comparative analyses of the financial reports of the College for presentation to the Board of Trustees.

Internally, the president, his senior staff, and the financial staff of the College periodically review selected financial data throughout the year. Morehouse College utilizes the Sungard (SCT) Banner administrative software to process transactions, compile and report financial information. This is one of the most comprehensive, and commonly used, administrative systems in higher education operations. This system enables Morehouse to capture detailed, extensive transactional and operational data and to provide financial statements and related documents that accurately and appropriately represent the total operations of the institution.

The accuracy and completeness of financial information and the integrity of the system used to maintain and present the College’s financial data is validated by the unqualified audit opinions provided by KPMG, our independent auditor.

KPMG also prepares a report that provides a comprehensive list of financial ratios that enables the College to assess its financial health using multiple measures. Please refer to Comprehensive Standard 3.10.1 for more discussion of the ratio analysis.

The College also uses the Composite Financial Index (CFI) as a comprehensive measure of its financial health. A score of three (3.0) is considered a threshold for institutional financial health. Please refer to Core Requirement 2.11 for an in-depth discussion of Morehouse’s composite score under the CFI methodology.

 

 
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