History of financial reporting models for American colleges and universities: 1910 to the present

              The Accounting Historians Journal
Vol. 20, No. 2
December 1993
1993 Vangermeersch Manuscript Award
Ken W. Brown
SOUTHWEST MISSOURI STATE UNIVERSITY
HISTORY OF FINANCIAL REPORTING
MODELS FOR AMERICAN
COLLEGES AND UNIVERSITIES:
1910 TO THE PRESENT
Abstract: This paper contrasts current and proposed higher-education
financial reporting models with financial reporting models developed
earlier in this century. The historical review in this paper has current
value since the FASB and the GASB are considering major changes in
the way that private and public colleges and universities report finan­cial
information. The results of the historical review reveal that,
through the years, report modelers varied in their concern for user
needs and report uniformity. Interestingly, the first higher-education
reporting model developed in 1910 and the proposed model devel­oped
in 1992 by the FASB both focused on user needs while the
primary objective for the reporting model currently in use and most
other intervening models was only uniformity.
This paper provides a historical review of financial report­ing
models suggested for use by colleges and universities. Illus­trations
are included of the prescribed financial report forms
suggested by major higher-education accounting publications
published between 1910 and the present. To provide a context
for the historical review, descriptions are provided of the
present model published by the National Association of College
and University Business Officers (NACUBO) and the future
model published by the Financial Accounting Standard Board
(FASB). Next, reviews are provided of the reporting models pub­lished
by (1) the Carnegie Foundation in 1910, (2) the General
Education Board in 1922, (3) Lloyd Morey in 1930, (4) the
American Council on Education (ACE) in the periods 1930-35
and 1952-68, and (5) NACUBO in 1974. During this period,
post-secondary education assumed a more important role in
American society, and in higher-education financial reporting
accordingly.