Ethan Freedman
February 17, 2026
Prof. Monica Foote
SOCWT7125: Financial Management
- What is their Fiscal Year?
a. The Henry Street Settlement fiscal year as noted in the documents runs from July 1, 2022 through to June 30, 2023. This can be found in the statement headers across all the financial statements and consistently noted in the statement of financial position, statement of activities, and statement of cash flows that are all labeled as year end June 30, 2023, which would mean the fiscal year begins on July 1st of the year.
i. July 1, 2022 - June 30, 2023
- Is their financial position in 2023 stronger or weaker than 2022? Why do you say that?
a. The financial position in the fiscal year of 2023 is weaker than the financial position of the fiscal year of 2022. This is noticeable in the total net assets highlighted in the statement of financial position, as the total net assets decline from $62.39 million (2022) to $60.85 million (2023). The statement of activities further highlighted by the organization's $1.54 million decrease in net assets in the year of 2023, compared to an increase in 2022 that was seemingly largely driven by one time PPP loan forgiveness, not ongoing operations.
- What are the big changes to their balance sheet in 2023?
a. The biggest changes to the balance sheet that I notice in their statement of financial position, as well as some stuff from the financial statements are a couple things:
i. The first thing I noticed in the Statement of financial position is that there is a significant decline in cash from $2.49M in 2022 to $94,788 in 2023.
ii. I also noticed in the statement of financial position that there is an outstanding line of credit that increased from $3.25 million to 3.75 million.
iii. Another thing I noticed in the statement of financial position is that the net assets without donor restrictions declined from $22.69M to $21.41M.
iv. Also on the statement of financial position and the notes on the net assets is evidence that approximately 65% of net assets remain donor restricted, including $23.3M permanently restricted endowment funds. We know that high restrictions in assets limit the financial flexibility of an organization, even if the total assets are high because they cannot spend at their will.
v. The last thing I notice in the statement of financial position is property and equipment increased by approximately $435,000, from 22.95M in 2022 to $23.38M in 2023.
- Where do they get the majority of their revenue?
a. Henry Street Receives the majority of its revenue from grants and fees from contracting agencies. In the statement of activities it shows $34.38 million in grants and fees from contracting agencies, making it its single largest item of revenue.
- What is their largest program? Why do you say it is the largest?
a. I argue that health and wellness is Henry Street's largest program as the statement of functional expenses shows health and wellness incurred $15.09 million in program service expenses which is the highest amount among all program categories. I say argue because program size can be determined by program expenses.
- What is their total fringe rate in 2022? What about 2023?
a. Fiscal year 2022:
i. Payroll taxes and benefits = $6.43M
ii. Salaries = $23.23M
iii. Fringe rate for the fiscal year of 2022 = ($6.43M / $23.23M) x 100 = 25.5%
b. Fiscal year 2023:
i. Payroll taxes and benefits = $6.81M
ii. Salaries = $28.29M
iii. Fringe rate for the fiscal year of 2023 = ($6.81M / $28.29M) x 100 = 24.1%
- What stands out to you on expenses that you’d want more information on?
a. There are a few things about the expenses that I would be curious to know more. The management and general expenses in the statement of functional expenses and the statement of activities totaled around $6.67 million in 2022 and $7.28 million in 2023, representing a large portion of the share of total expenses for Henry Street. Higher management costs are not always a problem when dealing with large orgs like Henry Street, but I wonder if this is due to changes in programming or overhead. Management and costs are often fixed, too.
b. I am also interested in the increase of interest expenses from $292,613 in 2022 to $695,909 in 2023, which is about $403,000 more. This means that Henry Street could have borrowed money, but I would like to know more about why this increase is almost double.
c. I am also curious about in-kind expenses as $2.50 million in nonfinancial assets in 2022 and the decrease of around $280,000 to $2.22 million in 2023. This is only a slight decrease, but it was still highlights that a large portion of non cash support was needed for 2023.
- They made a lot more revenue in 2023 but have less cash than they started the year with. Why? What had a big impact on this?
a. Although reported revenue increased in 2023, the statement of activities shows a higher total revenue, while the statement of cash flows shows a negative operating cash flow of $693,036. Cash flow was negative between 2022 and 2023, and much of the revenue for Henry Street was non cash or restricted assets. Cash seems to be constrained by increases in receivables, possible delays on government reimbursements, capital expenditures, and reliance on in kind and restricted revenue that does not generate cash for the organization.
- Are they balance sheet solvent?
a. YES, Henry Street is balance sheet solvent as their statement of financial position shows total assets of $80.1 million exceeding the total liabilities of $17.7 million, and resulting in a positive net assets of $60.85 million.
- Are they cash flow solvent?
a. Henry Street is cash flow solvent, but they are strained when it comes to the liquid assets that they have. The statement of cash flows shows a very low year end cash balance, and the liquidity note indicates that they have access to $7 million in credit and $9.36 million in board designated reserve funds, which show that they are rather short term solvent, but may struggle with cash flow long term.