Submit a short, one-page memo that identifies the nonprofit or governmental organization you will be analyzing for your final project.

Include a brief one-paragraph summary of the organization you have chosen and describe its core mission and programs. Include another paragraph detailing the entities' annual operating expenses (for governmental entities, list both government-wide and general fund numbers), and one detailing its major sources of revenue. Lastly, write a paragraph about at least one comparison organization you intend to analyze and justify your choice; a comparison organization can work in the same industry, provides similar types of services, has a similarly sized budget, and locates in the same geographic area as the target organization.

When selecting an organization, you should confirm that you have access toat leastthe following financial documents for at least three consecutive, recent years.

• Financial reports
• Similar Financial reports for its comparison organization(s).

2. Memo and Spreadsheet

You will submit a two-page, typewritten memo that is single-spaced, along with a clean Excel spreadsheet that replicates the financial statements (balance sheet, activity statement, and cash flow statement) and shows your analysis. In addition to your critical thinking and use of financial tools discussed in class, part of this assignment is to communicate your findings clearly and concisely.

Ratio analysis will be the core of your analysis, accompanied by supporting evidence from the annual report, auditor's report, or any other substantive knowledge you have regarding the organization. Explain in the final memo at least five ratios that you think are the most useful for understanding the financial condition of the entity (although you are likely to explore many more ratios than that), making sure to address liquidity, solvency, sustainability/profitability, changes over time, and comparison to other organizations. After calculating the ratios, you must interpret them.

Remember to examine the notes to the financial statements, and if available, any narrative provided by your entity and the auditor's report. Keep in mind the purpose of a financial statement analysis is to evaluate whether the organization is accomplishing its mission, whether it is financially stable, and whether the results of its operations are acceptable.

Start with a very brief summary paragraph of your findings. Do not repeat the description of your chosen entity and its core mission that have already been covered in your first memo. The purpose and focus of this memo are to help decision-makers and the public understand the financial condition of the organization.

Thoroughly discuss each of the ratios that you deem important. Be sure to describe the ratios in your own words given your analysis, comparisons, and organizational research. Leave the construction of the ratio in the Excel worksheet and focus on the interpretation.

To avoid having too many numbers in the main text of the memo, you can (but are not required to) attach a one-page exhibit with a table/figure or two. The exhibit should be closely connected with the discussions in the memo, rather than a stand-alone summary table/figure.

Lastly, provide an overall opinion of the entity's financial health and support your opinion with a one-paragraph summary. Convince the audience that your evaluation is reasonable.

Answer rating: 100% (QA)

MEMORANDUM To Recipient From Your Name Date Date Subject Analysis of NonprofitGovernmental Organization and Comparison Organization Summary This memo ... View the full answer