Presentation on theme: "Voluntary Health & Welfare Organizations (VHWO’s) Examples: YMCA United Way American Heart Association Most organizations are Non-Gov’t, but may receive."— Presentation transcript:
Voluntary Health & Welfare Organizations (VHWO’s) Examples: YMCA United Way American Heart Association Most organizations are Non-Gov’t, but may receive some government support.
Accounting Authority GASBFASB Government Supported Non-Government Supported (Most)
FAS #116 Impact Major – since contributions are major sources of revenue. FAS #117 Impact Major – since most VHWO’s prepared financial statements on a disaggregated (layered) basis.
Financial Statements Statement of Financial Position (Net Assets as to Restriction Category) Statement of Activities Statement of Cash Flows Statement of Functional Expenses
VHWO Accounting Notes of Importance… Revenues –Full Accrual Basis –Gross Amounts –Conditional & Unconditional –Categories of Restrictions –PV for Multiyear Contributions
Expenses –Full Accrual Basis –Reported Only in Unrestricted Net Asset Class –Involves Reclassification of Use of Temporarily Restricted Assets –Reported by Function & Natural Classification VHWO Accounting Notes of Importance…
Governmental, Nongovernmental NPO’s, and Commercial Healthcare entities are similar. –Business type activities (substantial % of revenue is for services provided) –AICPA instrumental in developing standards for all types –Therefore FASB & GASB have accepted AICPA Audit Guide as category B GAAP –FASB and GASB requirements are supplemented by AICPA Guide Healthcare Accounting
Financial Statements-NG Statement of Operations Statement of Changes in Net Assets Statement of Financial Position Statement of Cash Flows
Governmental Hospitals Required to follow GASB #34 (Category A) and AICPA Health Care Guide (Category B) GAAP Reporting as— –Special Purpose Government (Chapter 9) S of R, E, & Changes in NA may be two statements as illustrated in Chapter 12 –Enterprise Fund (Illustrations 6-1, 6-2, 6-3)