1. Governmental and Non-For-Profit Accounting

2. Course objectives 1. To learn the objectives of accounting systems in governmental and NFP entities. 2. To learn the financial statements required and the presentation of governmental and NFP entities. 3. To learn the accounting cycle for governmental and NFP entities. 4.Be able to analyze the operations and financial statements of these entities.

3. Bases of Accounting Cash Basis - all reporting and recognition is simultaneous with cash inflows and outflows Modified Cash Basis - Cash basis for the fiscal year with the books open for a time after the end of the year. Modified Accrual Basis - Revenues recognized in period when available and measurable but no depreciation recognized. Costs recognized when resources are acquired and are called expenditures Full Accrual - matching of revenues and expenses when earned and incurred and depreciation recognized

4. Types of Entities City and State Governments

5. Standards set by GASB Self balance set of accounts Three reporting levels Combined governmental fund statements Combining statements show subsidiary information Government-wide statements - consolidated

6. CAFR Comprehensive Annual Financial Report currently includes: Introduction - Letter of Transmittal Financial Section Auditor’s Report MD & A Financial Statements Supplementary information Notes Combining Statements Statistical Section

7. Financial Statements Government-wide statements Statement of net assets Statement of Activities Fund Statements Governmental Funds Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance Proprietary Funds Balance Sheet Statement of Revenue, Expenses, and Changes in Net Assets Statement of Cash Flows Fiduciary Funds Statement of Net Assets Changes in Fiduciary Net Assets

8. NFP Entities Private Universities Public Universities Other Voluntary organizations

9. Non-Profits Unless excluded use FASB standards Full Accrual Use Net assets instead of equity Three funds Unrestricted Temporarily Restricted Permanently Restricted

10. Financial Statements Statement of Financial Position Statement of Activities Statement of Cash Flow Statement of Functional Expenses

11. Review EntityStandards Basis State, Local Gov’t GASBModified Acc. And Accrual NFP Health & WelfareFASBAccrual Private College FASBAccrual Public College GASBAccrual