2 Statements included in Government-Wide Financial Statements
- Statement of Net Position
2. Statement of Activities
3 Components of Net Position
- Net investment in capital assets
- Restricted
- Unrestricted
Program Revenue Category Types : Government-Wide Financial Statements
- Charges for Services
- Operating Grants & Contributions
- Capital Grants & Contributions
Major Fund Rules
- All assets/liabilities, revs/expense at least 10% of corresponding element total for all funds of its category type.
and
- Element that met standard #1 is at least 5% of corresponding element total for all government & enterprise funds
Major Fund Info
- General fund always considered a major fund
* Only proprietary funds used in determination of major and nonmajor funds are the enterprise funds
Statement of Cash Flows: Notable Differences
- Direct method required
- Reconciliation of operating income to net cash provided by operations required
- Additional category
- Interest income/cash receipts reported as “investing activities” (not operating)
- Capital asset purchases reported as “financing activities” not operating activities
Statement of Revenues, Expenditures, Changes in Fund Balance Reconciliation
G.O.E.S.
B.A.R.E.
G. - GRSPP- net change in fund balance
O.- (other financing sources) associated with new debt or capital leases
E.- + Expenditure- capital outlay (net of depreciation & principal on debt service pymts)
S.- + Service (internal) fund net income
B.- Basis of accounting
A.- Additional accrued
R.- Revenues
E.- Expenses
3 Sections of Comprehensive Annual Report (CAFR)
Not a GAAP requirement, GFOA designed presentation:
- Intro section
- Basic F/S and Required Supplementary Information
- Statistical Section
Government Wide F/S Classify Net Assets as….
- Net investment in capital assets
- Restricted
- Unrestricted
Required Financial Statements of NFP
- Statement of financial position - B/S
- Statement of activities - I/S & R/E
- Statement of cash flows
- Statement of functional expenses - req for VHW orgs
Functional Classification of Expenses in NFP
- Program support expenses - directly related to the organization’s program
- Fund-raising expenses
- Management & general costs
Criteria to recognize donated services as contribution revenue & expenses for NFP
- They create or enhance a non-financial asset (land building, inventory)
- They require specialized skills that the provider possesses and would otherwise have been purchased by the org. (attorney, accountant, doctor).
Requirements to not recognize donated collection items as contribution revenue in NFP
- All must be met, consistent treatment as well*
1. Item is part of collection and not for investment or financial gain
2. Collection cared for, preserved, protected by org
3. Organization has policy that requires any proceeds from sale of donated items to be reinvested in other collection items.
General principles on recipient accounting :NFP
Without variance power: no authority to redirect assets
Dr. Asset
Cr. Liability - to beneficiary
With variance power: authority to redirect assets
Dr. Asset
Cr. Contribution revenue
Other revenues for Health Care Organizations
- donated medical supplies
- donated labor (similar reqs as NFP)
- revenues from educational programs
- cafeteria, parking, gift shop
- gifts, grants
Computation of patient service revenue:
Gross Patient Service Revenue
= Patient Service Revenue
Voluntary Health & Welfare Organizations: Statement of Functional Expenses
Mandatory:
Detailed schedule of expenses, divided into functional areas, such as program services and support services.
Cash Flows for Non-Governmental Not for Profit
Statement of cash flows format same as for-profit
Reconcile funds balance of governmental funds to net position of governmental activities (balance sheets)
G.A.L.S. B.A.R.E.
G. GRSPP - fund balance
A.+ assets (non-current) of gov activities net of accum dep)
L. not recorded on fund financial statements
S. + Service (internal) fund net position
B.- Basis of accounting
A.- Accrued
R.- Revenues
E.- Expenses
- Do not include fiduciary fund net assets or prop fund net assets
