Issues of Reporting, Disclosure, and Financial Analysis
Not-for-Profit Organizations
Colleges and Universities
100
Which basis of accounting is used for proprietary funds?
What is full accrual
100
Which basis of accounting is used for fiduciary funds?
What is full accrual
100
What are the elements of a CAFR?
What is the intro, financial, and statistical sections
100
Which accounting standards do nonprofits follow?
What is FASB
100
What standards do public universities and community colleges follow?
What is GASB
200
Proprietary funds include which two fund types?
What is enterprise and internal service funds
200
What are the net asset categories for nonprofits?
What is unrestricted, temp restricted, and permanently restriced
200
A document that explains financial information, it is not audited but is reviewed and compared to the financial statements.
What is the management discussion & analysis
200
What are the three categories of net assets?
What is Unrestricted, temporarily restricted net assets, and permanently restricted net assets
200
How are tuition and scholarships accounted for?
Tuition revenue is reported net of tuition discounts and scholarships
300
In the statement of cash flows, what are the classifications used for cash flows?
What is operating, noncapital financing, capital and related financing, and investing
300
Where is an unfunded pension liability recorded on the financial statements?
What is government-wide financial statements
300
This document gives budget to actual comparisons for general fund and major special revenue funds and info about the infrastructure condition.
What is required supplementary information
300
Cash from operating, financing, and investing are three categories in this Financial statement.
What is the statement of cash flows
300
How are grants accounted for under FASB 116?
Grants are a form of contribution. If they are reimbursement grants, revenue is recognized as expenses are incurred (temp restricted)
400
Which fund type is included with the governmental activities on the government-wide financial statements?
What is the internal service fund
400
How do agency funds show on the financial statements?
What is fiduciary fund - there is not a fund balance but rather the assets less liabilities is shown as amount due to the organization
400
Are combining statements required?
No they are optional. Many organizations choose to include this information for a variety of reasons
400
Which of the three net asset categories can have expenses?
Only restricted can have expenses
400
What guidance can private nonprofit colleges/universities use if FASB is not specific about an issue?
What is ACIPA (now the regular guide for not-for-profit organizations is used instead) and NACUBO
500
What are the basic financial statements for proprietary funds?
What is statement of net position, statement of revenues, expenses and changes in that position, statements of cash flows
500
What is the difference between a defined contribution and defined benefit pension plan?
What is defined contribution - employees and employers contribute to plan, benefits received depend on the performance of the investments
What is defined benefit - the employer specifies the pension benefits the employee will receive when they retire
500
When should a component unit be presented as blended?
Blended is appropriate when,
1. governing body is substantively the same as primary government
2. component unit provides services solely to the primary government
3. Debt is expected to be repaid entirely or almost entirely by primary government
500
How are investment gains and losses accounted for?
Investments should be recorded at fair market value and recognize the changes in fair value as they occur. Interest, dividends, and gains and losses from investments are reported as increases and decreases in unrestricted net assets (unless their use in temporary or permanent restricted by explicit donor stipulation)
500
When should fund raising foundations be included as component units in public college or university financial statements?
They should be reported as component units if:
1. The main beneficiary is the primary government
2. Primary government is entitled to, has access to majority of component units economic resources
3. Component units resources are significant to the primary government