The Change in Surplus and Other Funds ratio is the most general measure of the improvement or
deterioration in the society’s financial condition during the year.
The usual range includes all results greater than -10 percent and less than 50 percent. If the
Change in Surplus and Other Funds ratio equals or falls outside the usual range limit, further
analysis should be conducted to determine the reasons behind the decrease or increase in surplus
and other funds and to determine whether a trend is developing. Review the surplus and other
funds account on the Summary of Operations page of the annual financial statement. If the only
significant change in surplus and other funds resulted from operations (including realized capital
gains and losses), refer to the suggestions discussed under Ratio 2, Net Income to Total Income.