Public University Analysis (#2) - Essay Example

The current trend is that the organisations only have to report their contributions but the proposal will make their financials weaker since they have to show their share of liabilities. The effect of the proposed GASB will be an increase in the pension liability for public agencies. The income that the institution receives from its activities is an economic factor that affects the organisation’s future growth and success. The higher the income obtained by an entity from its operations, the higher the growth and success of that institution.

(The Times 100) The inflation rates being experienced in the economy affect the growth of the institution since inflation rates affects the price of commodities. When these rates are high it reduces the spending power of the institution since there is an increase in the prices of commodities. The recession, like the one in 2008, caused a slow rate in growth of an institution since the economy is experiencing a slump. The recession also limits the success that an organization might have due to it reporting reduced sales.

(The Times 100) Interest rates increase the borrowing costs of an institution and reduce the funds that an institution might try to get from borrowing due to the high costs of borrowing. (The Times 100) High borrowing costs also limit the growth of an institution since much of the capital is borrowed and therefore no in the control of the shareholders, which is not an ideal situation. Federal Pell grants are recorded under non-operating revenues (expenses) together with private gifts, state hospital fee grants, Build America Bonds federal interest subsidies and net investment income.

All these are accumulated to give the net non-operating revenues. Federal Pell grants are also included in the Schedule of Expenditures of Federal Awards as well as the