You are a member of the executive of the students’ union at your university. As one of the few executive members with some knowledge of financial accounting, you have been tasked with responding to a request from the office of the university’s vice-president of finance. She has asked the student union to provide its thoughts on the university’s move to present the expenses on its statement of operation (statement of income) by function rather than by nature. The VP is proposing two functions: (1) instruction/student support and (2) ancillary.
a. What concerns might the student union have with this proposal?
b. What recommendation(s) would you suggest the student union make in relation to the proposal?