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Appendix A

Final Project Overview and Timeline

Final Project Overview

The final project for HSM 260 is a compilation of various financial aspects of a nonprofit organization.

Nonprofit Organization Profile
In 2000, XYZ Corporation was incorporated as a 501(c)3 nonprofit in the state of Texas. The organization’s mission is to provide psychiatric counseling services for residents of El Paso County. XYZ receives funding from the state government on an annual basis to provide services to those deemed to be medically indigent—that is, those residents who have an income less than 150% of the poverty level, based on federal poverty guidelines. Patients are required to pay a fee, which can be as low as $20.00 per visit, based on their income. XYZ employs a staff of four licensed professionals. As a result of the demand for the service and a clear need in the area, XYZ received additional funding in late 2003 to open a satellite office. • Review the financial statements for XYZ Corporation in Appendix D.

• Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, fund-raising/expense ratio, and revenue/expense ratio for the years 2003 and 2004.

• Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement on whether or not the organization’s financial picture has improved within the three-year period specified in Appendix D.

• Calculate the fixed costs, variable costs, and break-even point for the XYZ Corporation listed in Appendix D.

• Discuss the purpose, advantages, disadvantages, and type of feedback provided by a line item, performance, and program budget in a 350- to 700-word essay.

• Provide a 350- to 700-word response to the following: Identify

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