Financial and Accounting Guide for Not-for-Profit Organizations

INDICE: About the Authors xv CHAPTER 1 Responsibilities for Fiscal Management 1 1.4 Safeguarding Financial Assets and Providing Effective Internal Controls 1 1.5 Complying with Federal and State Reporting and Regulatory Requirements 1 1.7 Ten Key Points to Consider in Not–for–Profit Fiscal Management 2 (b) Financial Reporting 2 (iii) Audited Financial Reports Are Prepared by Management 2 (c) Budgeting and Resources 2 (vii) A Not–for–Profit Organization May Be Required to Consolidate Reporting with Related Organizations 2 PART I KEY FINANCIAL CONCEPTS 3 CHAPTER 2 Accounting Distinctions between Not–for–Profit and Commercial Organizations 5 2.2 Principal Areas of Accounting Differences 5 (a) Cash versus Accrual Accounting 5 (d) Treatment of Fixed Assets 5 (g) Net Assets (New) 6 CHAPTER 3 Cash– versus Accrual–Basis Accounting 7 3.1 Cash and Accrual Statements Illustrated 7 CHAPTER 4 Fund Accounting and Internal Financial Reporting 9 4.1 Fund Accounting Defined 9 (a) Current Unrestricted Fund 9 (i) Board–Designated Funds 9 (c) Restricted Endowment Fund 9 4.4 Typical “Fund” Financial Statements 9 4.5 Transfers between Funds 10 CHAPTER 7 Affiliated Organizations, Pass–Through Transactions, and Mergers 11 7.1 Types of Relationships Often Found 11 (a) The Fundraising Affiliate of a Parent Organization 11 7.2 Definition of the Reporting Entity 11 (a) Pass–Through Gifts and Assets Held for the Benefit of Another Organization 12 (b) Combined Financial Statements 12 (i) Reporting of Related Entities by Not–for–Profit Organizations 12 (ii) Omnibus Changes to Consolidation and Equity Method Guidance for Not–for–Profit Organizations 13 (iii) Consolidation of Variable Interest Entities 13 7.3 Mergers of Not–for–Profit Organizations 14 (b) Not–for–Profit Entities: Mergers and Acquisitions 14 CHAPTER 8 Contributions, Pledges, and Noncash Contributions 15 8.1 Expendable Current Support 15 (a) Unrestricted Contributions 15 (iii) Presentation in the Statement of Activities 15 (b) Temporarily Restricted Contributions 16 (ii) Distinguishing Grants from Gifts 16 8.2 Gifts–in–Kind 16 (a) Fixed Assets (Land, Buildings, and Equipment) and Supplies 16 (b) Museum Collections 16 (ii) Basis on Which to Value Services 16 (e) Use of Facilities 16 (f) Services Provided by Other Organizations 17 8.3 Support Not Currently Expendable 17 (a) Endowment Gifts 17 (b) Pledges (Promises to Give) 17 (iii) Recording at Fair Value 17 (iv) Allowance for Uncollectible Pledges 17 (c) Bequests 17 (d) Split–Interest Gifts 18 (ii) Accounting for Split–Interest Gifts 18 CHAPTER 9 Accounting Issues Relating to Fundraising 19 9.1 Accounting for Gifts 19 (a) Pledges 19 (b) Revenue and Restricted Gifts 19 (e) Pass–Through Gifts 20 PART II FINANCIAL STATEMENT PRESENTATION 21 CHAPTER 10 Cash–Basis Financial Statements 23 10.1 Simple Cash–Basis Statement 23 (a) Characteristics 23 (b) Budget Comparison 23 10.2 Simple Statement with Last Year’s Figures and Budget 23 10.3 Combined Cash–Basis Income Statement and Balance Sheet 24 (a) Characteristics 24 10.5 Statement of Income with Certain Cash Transactions Omitted 24 (a) Characteristics 24 10.6 Modified Cash–Basis Statements 24 CHAPTER 11 Accrual–Basis Financial Statements 25 11.1 Simple Accrual–Basis Statements 25 (a) Income 25 (c) Net Assets 25 11.2 Accrual–Basis Statements—Fundraising Organization 26 (c) Income Statement Format 26 11.3 Accrual–Basis Statements—International Organization 26 CHAPTER 12 Multiclass Financial Statement 27 12.2 Preparation of Statement of Cash Flows 27 (a) Explanation of Cash Flow Statement Worksheets 27 (b) Explanation of “Reconciliation” Worksheet 27 12.3 “Class” Financial Statements Explained 27 (d) Statement of Activities 27 12.4 Columnar Format Presentation 28 (b) Reclassification and Net Assets Section 28 12.5 A Complicated Set of Class Financial Statements 28 (a) Overall Impression of Complexity 28 PART III ACCOUNTING AND REPORTING GUIDELINES 29 CHAPTER 13 Voluntary Health and Welfare Entities 31 13.1 Accounting Principles 31 (a) Accrual Basis 31 13.2 Accounting for Contributions 31 (c) Donated Services 31 (e) Donated Securities 31 (g) Timing of Reporting of Gifts 33 (ii) Pledges 33 13.5 Accounting for Assets 33 (a) Carrying Value of Investments 33 13.7 Financial Statements 33 (a) Balance Sheet 33 (iii) Supporting Services 33 CHAPTER 14 Colleges and Universities 35 14.2 The Principal Financial Statements 35 (a) Balance Sheet 35 14.3 Accounting Principles 35 (f) Investment Income, Gains, or Losses on Investments 35 (h) Carrying Value of Investments 35 CHAPTER 15 The External Financial Statement Reporting Model for Organizations Reporting under GASB Standards 37 15.3 Generally Accepted Accounting Principles 38 15.4 External Financial Reporting Model 38 15.5 Basic Financial Statements 38 (a) Statement of Net Assets (Balance Sheet) 38 (b) Statement of Revenues, Expenses, and Changes in Net Assets 40 (c) Statement of Cash Flows 40 15.7 Assets, Liabilities, and Deferred Inflows/Outflows 41 (a) Investments 41 (b) Capital Assets 41 (ii) Works of Art and Historical Treasures 41 (c) Intangible Assets 41 (d) Derivatives 41 (f) Deferred Inflows and Outflows of Resources 42 15.8 Revenues and Expenses 42 (ii) Purpose Restrictions 42 (iii) Financial Statement Display 42 (c) Labor Costs and Employee Benefits 42 (ii) Pensions and Other Postemployment Benefits 42 (iii) Termination Benefits 43 (d) Government Combinations (New) 43 15.9 Other Reporting Matters 44 (b) Required Supplementary Information (RSI) 44 CHAPTER 16 Health Care Organizations 45 16.2 Accounting Guidance 45 (b) AICPA Audit Guide 45 (c) Securities and Exchange Commission (SEC) 46 (d) HFMA Principles and Practices Board 46 16.3 Financial Statements 46 (a) Financial Reporting Model 46 (b) Balance Sheet 46 (c) Statement of Operations 46 (i) Performance Indicator 46 (e) Statement of Cash Flows 46 16.4 Accounting Principles 46 (b) Revenue Recognition 46 (i) Fee–for–Service Transactions 46 (iv) CCRC Entrance Fees 47 (d) Settlements with Third–Party Payers 47 (g) Investments 47 (i) Equity Investments 47 (iii) Investment Pools Sponsored by Other Nonprofits 47 (i) Contributions 47 (ii) Contributions Received by Affiliated Fundraising Foundations 47 (j) Malpractice and Similar Contingencies 47 (k) Reporting Entity Considerations 47 (i) Consolidation of Other Not–for–Profit Entities 47 (ii) Special–Purpose Entities 48 (iv) Joint Operating Agreements 48 CHAPTER 17 Accounting Standards for Other Not–for–Profit Organizations 49 17.1 Accounting Principles 49 (a) Accrual Basis of Reporting 49 (g) Donated Facilities 50 (h) Membership and Subscription Income 50 (i) Life Membership and Initiation Fees 50 (j) Grants to Others 50 (k) Membership Development Costs 50 17.2 Financial Statements 50 (a) Statement of Cash Flows 50 17.3 Combined Financial Statements 50 CHAPTER 18 Special Accounting Issues for Specific Organizations 51 18.4 Libraries 51 CHAPTER 19 The Financial Accounting Standards Board and Future Trends in Not–for–Profit Accounting 53 19.1 Financial Accounting Standards Board 54 (a) Establishment of Accounting Rules 54 (b) Interaction with AcSEC (New) 54 (c) FASB’s Conceptual Framework (New) 55 (d) FASB Not–for–Profit Standards 55 (e) AICPA Projects 56 19.2 The FASB Accounting Standards CodificationTM (ASC) (New) 56 (a) Using the Codification (New) 56 Appendix 19–A New FASB Statements of Financial Accounting Standards That Affect Not–for–Profits (New) 57 PART IV CONTROLLING THE NOT–FOR–PROFIT ORGANIZATION 59 CHAPTER 20 The Importance of Budgeting 61 20.3 Timely Interim Statements 61 (b) Restaurant Operation 61 20.4 A Five–Year Master Plan 61 (a) Suggested Procedures 61 (iii) Plan for Income 61 CHAPTER 21 Small Organizations—Obtaining the Right Accountant 63 21.1 Level of Accounting Services Needed 63 (a) Secretary as Accountant 63 CHAPTER 22 Small Organizations—Providing Internal Control 65 22.3 Some Basic Controls 65 (b) Control over Disbursements 65 (c) Other Areas of Control 65 22.4 Fidelity Insurance 65 CHAPTER 23 Effective Internal Accounting Control for Not–for–Profit Organizations 67 23.1 Introduction to Internal Accounting Control 67 (b) Internal Control—Integrated Framework Definition 67 (f) New Thresholds for Internal Control Weaknesses 67 (g) SAS 114 Communications 68 23.2 Elements of an Effective Internal Accounting Control System 68 (a) Control Environment 68 (d) Organization Structure and Management Controls 68 (g) Recordkeeping and Information Systems 68 (ii) Service Bureaus (j) Periodic Review of the Control System 68 23.3 Basic Internal Accounting Control System 68 (i) Compensation and Expenses 68 CHAPTER 24 Independent Audits 69 24.1 Functions and Limitations 69 (a) Auditor’s Opinion Explained 69 (ii) Responsibility for Statements and the Audit Thereof 69 (iv) Expanded Procedures 69 24.2 Benefits of an Independent Audit 69 (e) Open Communications between the Auditors and Those Charged with Governance 69 24.4 Public Accountants 70 24.5 Audit Committees 70 24.6 Conclusion 70 CHAPTER 25 Investments 71 25.1 Types of Investments 71 (a) Directly Owned Positions 71 (b) Indirectly Owned Positions through Net Asset Value Ownership 71 25.3 Key Considerations When Investing in Alternative Investment Funds 72 (a) Fiscal Year–Ends and Management’s Response 72 PART V PRINCIPAL FEDERAL TAX AND COMPLIANCE REQUIREMENTS 73 CHAPTER 26 E–Business for Not–for–Profit Organizations 75 26.1 Whether You Call It E–Business or Technology–Enabled Business, It Still Matters 75 26.2 Ask Yourself These Questions 76 26.7 How Are Not–for–Profit Organizations Using E–Business Today? 76 (b) Using Dot.coms 76 CHAPTER 27 Principal Tax Requirements 77 27.3 Tax Status of Charitable Organizations: Public Charity or Private Foundation 77 (b) Private Foundations 77 27.4 Other Concerns for Charities 78 (a) Unrelated Business Income 78 (iii) Advertising Income 78 (viii) Tax Rates on Unrelated Business Income 78 (d) Charitable Contributions 78 (v) Tax Consequences of Gifts of Securities to a Private Foundation 78 27.5 Private Foundations 78 (a) Excise Tax on Investment Income 78 (b) Distribution of Income 78 27.8 Recognition of Exemption and Annual Reporting to IRS 78 (a) Initial Recognition of Exemption 78 27.9 Federal Information and Tax Return Filing Requirements 79 (a) Overview of Annual Information Reporting and Failure to File Annual Return (Form 990, 990–EZ, 990–N, 990–PF) 79 (ii) Penalties for Failure to File Annual Return (Form 990, 990–EZ, 990–N, 990–PF) 79 (iii) Automatic Revocation of Tax–Exempt Status 79 27.12 Restrictions on Supporting Organizations 79 (c) Restrictions Applicable Only to Type III Supporting Organizations 79 27.14 IRS Audits and Compliance Programs (New) 79 CHAPTER 28 Audits of Federally Funded Programs 81 28.4 What to Expect from the Audit 81 (a) How Is It Different from a Financial Statement Audit? 81 28.6 Sweeping Changes Proposed (New) 82 (a) OMB 82 (b) Congress 82 28.7 Conclusion 83 PART VI SETTING UP AND KEEPING THE BOOKS 85 CHAPTER 29 Cash Basis Bookkeeping 87 29.2 Checkbook System 87 (d) Financial Statements 87 29.3 Cash–Basis System 87 (e) Trial Balance 87 (f) Closing the Books at the End of the Year 87 CHAPTER 30 Simplified Accrual–Basis Bookkeeping 89 30.1 Books and Records 89 30.3 Monthly Accrual Entries 89 (b) Reversal of Accrual 89 30.4 Payroll Taxes 89 (a) Illustrative Treatment 89 CHAPTER 33 Automating the Accounting Records 91 33.2 What to Automate 91 (b) Typical Accounting Software Modules for Not–for–Profit 91 (i) General Accounting Modules 91 33.3 Selecting the Right Software 91 (b) Steps to Selecting the Right Accounting Software 91 33.4 Implementing the New System 92 CHAPTER 34 Tax–Exempt Debt 93 34.3 The SEC’s Role and Authority 93 (b) Disclosure Requirements for Municipal Issuers 93 (i) SEC Rule 15C2–12 93 34.4 Proposed Municipal Market Reforms 93 APPENDIX B The Future of the Academic Medical Center (New) Strategies to Avoid a Margin Meltdown 95 APPENDIX E Perspectives in Higher Education 2012 (New) 123 Index 155

• ISBN: 978-1-118-36311-9
• Editorial: John Wiley & Sons
• Encuadernacion: Rústica
• Páginas: 176
• Fecha Publicación: 18/04/2013
• Nº Volúmenes: 1
• Idioma: Inglés