Case StudyNEW ENGLAND TRUST

Question 1

• Identify which number belong to organization :• Boston Symphony Orchestra

• Brigham and Women’s Hospital

• Quincy City Hospital

• The Ford Foundation

• Family Service of Greater Boston

• Tufts Associated Health Maintenance Organization

• Harvard Community Health Plan, Inc. and Affiliates

• Museum of Fine Arts, Boston

• Massport Authority

• Oxfam America Inc.

• Boston Symphony Orchestra (BSO)• Ticket sales account for a large portion of total revenue• Operating costs are subsidized by endowment and other investment earnings,

foundation support, and annual public contributions• Brigham and Women’s Hospital (B&W)

• Fees it receives nearly break-even with its operating activities• High rate of bad debt• A certain portion of hospital services are delivered as “charitable care”• B&W owns all of its buildings and is currently rebuilding its labor and delivery

ward• Quincy City Hospital

• A large portion of fees go unpaid as charitable services and bad debt• Owns its buildings and most of its fixed equipment• Hospital’s assets have been funded largely by long-term Series A Bonds and

mortgage loans• The Ford Foundation

• Operating income strictly from the interest and dividends from its investments• Capital appreciation of its investments is classified as an additional source of non

operating income• Each year ford grants millions of dollars to support all kinds of organizations

around the world

• Family Service of Greater Boston• Last year, 35% of total funding support represented by government contracts• Nearly the same amount of revenues generated from client fees, which may take

considerable time to collect• With large operating expense, relies heavily on outside support and returns

generated by its investments• This past year allocated significantly more to current operations than actual

return from investments• Tufts Associated Health Maintenance Organization (TAHMO)

• TAHMO arranges for the delivery of comprehensive health care services, on prepaid basis

• To cover costs, TAHMO must at least break even from its operating activities• Most of its asset base is financial, and a large portion of its liabilities are

unearned revenues• Harvard Community Health Plan, Inc. and Affiliates (HCHP)

• Provide comprehensive medical services through their own health care professional and contracts with established multi-specialty medical groups

• HCHP relies entirely on operating revenues both to cover its costs and to reinvest• HCHP owns and rents its own buildings, equipment, supplies, and inventories as

necessary• Small account receivable• Relatively high account payable

• Museum of Fine Arts (MFA)• Exhibition for members and paying customers• Retail merchandise is stocked and sold to the public• Investments and an endowment from which interest and dividends are

transferred to the current fund• Both annual and capital gains from investments constitute additional sources of

income• The cost of works of art are not capitalized, but directly charged to the funds

available for such purposes• MassPort Authority

• Owns and operates large-scale air, land, and sea transportation facilities• Large asset base relative to operating revenues and expenses• Annual surpluses from operations are an important part of financing expansionary

projects• Oxfam America, Inc.

• Receives nearly all of its financial support from public contributions, classified as non operating sources of funding

• Operating revenues consist primarily of its ROI• Program reimbursements accounting for only 1 percent of total sources of

funding• No liabilities other than accounts payable and deferred revenues due to its

reliance on fund raising activity

1 2 3 4 5 6 7 8 9 10Assets

Cash & Equivalents 21,003 1,323 4,232 962 185 138,213 5,737 1,388 6,114 Accounts Receivable 1,790 13,696 50,715 2,721 954 17,292 1,466 2,193 8,318 Investments 31,777 151,896 61,034 6,158,191 2,431 38,677 159,212 1,154 61,223 Inventories 3,900 6,300 6,811 92 816 Other Current Assets 3,211 19,705 119,764 70,922 104 18,307 1,258 30 2,047 412 Total Current Assets 57,781 186,620 239,645 6,232,796 3,674 218,789 168,747 7,013 66,851 15,660 Plant & Equipment 2,541 559,416 274,213 20,210 1,267 175,084 78,779 949 17,321 12,039 All Other Assets 1,068 170,315 40,833 7,694 757 7,930 35,702 Total Assets 61,390 746,036 684,173 6,253,006 4,941 434,706 255,220 8,719 92,102 63,401

Liabilities and Fund BalanceCurrent Liabilities 43,801 44,817 132,817 193,679 981 182,472 8,707 2,986 8,127 16,118 Long-Term Liabilities 288,815 347,091 344 180,760 42,241 10,068 35,451 Total Fund Balance 17,589 412,404 204,895 6,059,327 3,616 71,474 204,272 5,733 73,907 11,832 Total Liability and Fund 61,390 746,036 684,803 6,253,006 4,941 434,706 255,220 8,719 92,102 63,401

Operating StatementOperating Revenues 230,491 176,378 527,444 303,394 5,141 828,667 49,761 467 25,235 44,342 Expenses 224,514 157,180 522,604 333,772 8,273 813,085 61,653 12,740 31,546 44,194 Operating Income 5,977 19,198 4,840 (30,378) (3,132) 15,582 (11,892) (12,273) (6,311) 148 Non-Operating Gain (Loss) 3,057 12,694 884,570 2,695 13,476 13,340 6,839 652 Net Income 5,977 22,255 17,534 854,192 (437) 15,582 1,584 1,067 528 800

Profitability RatiosOperating Profit Margin 0.03 0.11 0.01 -0.10 -0.61 0.02 -0.24 -26.28 -0.25 0.00Net Profit Margin 0.03 0.13 0.03 2.82 -0.09 0.02 0.03 2.28 0.02 0.02ROA 0.10 0.03 0.03 0.14 -0.09 0.04 0.01 0.12 0.01 0.01ROE 0.34 0.05 0.09 0.14 -0.12 0.22 0.01 0.19 0.01 0.07

Activity RatiosAverage Collections 2.83 28.34 35.10 3.27 67.73 7.62 10.75 0.00 31.72 68.47Asset Turnover 3.75 0.24 0.77 0.05 1.04 1.91 0.19 0.05 0.27 0.70

Liquidity RatiosCurrent Ratio 1.32 4.16 1.81 32.18 3.75 1.20 19.38 2.35 8.23 0.97Quick Ratio 1.32 4.16 1.78 32.18 3.75 1.16 18.60 2.32 8.23 0.92

Leverage RatiosDebt Ratio 0.71 0.45 0.70 0.03 0.27 0.84 0.20 0.34 0.20 0.81Debt-Equity 0.00 0.70 1.69 0.00 0.10 2.53 0.21 0.00 0.14 3.00

Balance Sheet

• Boston Symphony Orchestra (BSO) [8]• No A/R Collection• Lots of asset are highly depreciated (949)• Operating costs are subsidized by endowment and other investment earnings,

foundation support, and annual public contributions• Brigham and Women’s Hospital (B&W) [5]

• Fees it receives nearly break-even with its operating activities• High rate of bad debt• A certain portion of hospital services are delivered as “charitable care”• B&W owns all of its buildings and is currently rebuilding its labor and delivery

ward• Quincy City Hospital [10]

• Average Collection 68.47 • Owns its buildings and most of its fixed equipment• Bonds 35,451

• The Ford Foundation [4]• Operating income strictly from the interest and dividends from its investments

(6,158,191)• Capital appreciation of its investments is classified as an additional source of non

operating income (884,570)• Each year ford grants millions of dollars to support all kinds of organizations

around the world

• Family Service of Greater Boston[3]• Last year, 35% of total funding support represented by government contracts• Nearly the same amount of revenues generated from client fees, which may take

considerable time to collect• With large operating expense, relies heavily on outside support and returns

generated by its investments• This past year allocated significantly more to current operations than actual

return from investments• Tufts Associated Health Maintenance Organization (TAHMO) [9]

• TAHMO arranges for the delivery of comprehensive health care services, on prepaid basis

• To cover costs, TAHMO must at least break even from its operating activities• Most of its asset base is financial, and a large portion of its liabilities are

unearned revenues• Harvard Community Health Plan, Inc. and Affiliates (HCHP) [1]

• Provide comprehensive medical services through their own health care professional and contracts with established multi-specialty medical groups

• HCHP relies entirely on operating revenues both to cover its costs and to reinvest• HCHP owns and rents its own buildings, equipment, supplies, and inventories as

necessary• Small account receivable• Relatively high account payable

• Museum of Fine Arts (MFA) [6]• Exhibition for members and paying customers• Retail merchandise is stocked and sold to the public• Investments and an endowment from which interest and dividends are

transferred to the current fund• Both annual and capital gains from investments constitute additional sources of

income• The cost of works of art are not capitalized, but directly charged to the funds

available for such purposes• MassPort Authority [2]

• Owns and operates large-scale air, land, and sea transportation facilities• Large asset base relative to operating revenues and expenses• Annual surpluses from operations are an important part of financing expansionary

projects• Oxfam America, Inc.[7]

• Receives nearly all of its financial support from public contributions, classified as non operating sources of funding

• Operating revenues consist primarily of its ROI• Program reimbursements accounting for only 1 percent of total sources of

funding• No liabilities other than accounts payable and deferred revenues due to its

reliance on fund raising activity

Q.2 : What other criteria related

Other Criteria Criteria on how one organization could achieve their goals without

being disrupt the balance of its financial stability

Criteria of Independability of those organization to gain their own fund

Criteria the continuity of those organization to serve its purposes towards communities