Not-For-Profit Organizations
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Transcript Not-For-Profit Organizations
Not-For-Profit Organizations
Governmental
State and Local
Government
City of Martin
County of Weakley
State of Tennessee
Special School Districts
Madison County Hospital
Federal Government
U.S. Government and its
agencies
Non-Governmental
United Way
American Red Cross
Bethel College
Vanderbilt University
Methodist Healthcare
Habitat for Humanity
Definition of a Government
Popular election or appointment by
popular elected officials
Potential for unilateral dissolution by
government
Power to tax
Power of Issuance of tax exempt debt
directly
Financial Reporting-NFPs
Governmental
State and Local
Objectives
GAAP Hierarchy (pp. 4-5)
GASB is King (Queen)
Federal
Objectives
GAAP Hierarchy (pp. 4-5)
FASAB is King (Queen)
Non-Governmental
Objectives (p. 6)
GAAP Hierarchy (pp. 4-5)
FASB is King (Queen)
Recent FASB Activity
Little until middle 1990s
SFAS 116, 117, 118, 121
changed this inactivity
State and Local Government
Financial Reporting
User considerations are much more diverse
Investors and creditors
Legislative and oversight officials
Political and social decisions as well as economic
Measurement Focus
Economic resources
Flow of current financial resources
State and Local Government
Basis of Accounting
Accrual
Modified Accrual
Method of Reporting
Comprehensive Annual Financial Report
Sections of CAFR
Introductory
Financial
Statistical
Exchange and Non-exchange
Transactions
Exchange
Each party receives and gives up equal
values
City cleans up privately owned property
and bills the owner for the service
Non-Exchange
One party does not receive proportionate
value for value given up
Property tax revenue
Financial Statements
Government-Wide
Accrual basis of accounting
Economic resources measurement focus
Statement of Net Assets
Statement of Activities
Fund: A fiscal and accounting entity
Modified accrual basis of accounting
Flow of current financial resources
measurement focus
Each fund is a self-balancing set of accounts
Fund Financial Statements
Governmental Funds
Balance Sheet
Statement of Revenue, Expenditures, and
Changes in Fund Balances
Proprietary Funds
Statement of Net Assets
Statement of Revenue, Expenses, and Changes
in Fund Net Assets
Statement of Cash Flows
Fund Financial Statements
Fiduciary Funds
Statement of Fiduciary Net Assets
Statement of Changes in Net Fiduciary Assets
Special Considerations
Differences in measurement focus and basis of
accounting between Government-Wide and
Fund Financial Statements require reconciliation
schedules
Fiduciary Fund Statements are not included in
the Government-Wide financial statements
Types of Governmental Funds
Governmental
General
Special Revenue
Capital Projects
Debt Service
Permanent
Proprietary Funds
Enterprise
Internal Service
Fiduciary Funds
Agency
Pension Trust
Investment Trust
Private-Purpose
Trust
Governmental Funds and Budgeting
Required for governmental type funds
Optional for proprietary type funds
Adopted by the legislative body
Entered into the accounting records in
reverse debit/credit approach
A part of appropriate financial statements
and/or schedules
Accounting for Capital Assets
and Infrastructure
Long-lived assets
All (except collections of works of art and
historical treasures) must be capitalized and
depreciated on government-wide and
proprietary fund financial statements
Capital assets and related depreciation
expense do not appear on governmental
type fund financial statements
More elaborate discussion in next chapter
Long-Term Debt
Payable more than one year from Statement
of Net Assets Date
All entity long-term debt must be reported
on the Statement of Net Assets (GW)
Governmental type funds do not report
long-term debt on financial statements
(Flow of current financial resources
measurement focus)