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Voluntary Health & Welfare Organizations (VHWO’s)  Examples: YMCA United Way American Heart Association  Most organizations are Non-Gov’t, but may receive.

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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:

1 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.

2 Accounting Authority GASBFASB Government Supported Non-Government Supported (Most)

3 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.

4 Sources of Accounting Authority:  AICPA Audit Guide –Audits of VHWO’s (1974)  Audit & Accounting Guide –NPO’s (1996)  SFAS #116  SFAS #117  SFAS #124, 133, and 135

5 Financial Statements  Statement of Financial Position (Net Assets as to Restriction Category)  Statement of Activities  Statement of Cash Flows  Statement of Functional Expenses

6 VHWO Accounting Notes of Importance…  Revenues –Full Accrual Basis –Gross Amounts –Conditional & Unconditional –Categories of Restrictions –PV for Multiyear Contributions

7  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…

8 Healthcare Accounting  Types of Organizations –Nongovernmental NFP –Governmental –Commercial (For-Profit)  Financial Accounting Standards –Category A: FASB & GASB Hierarchy –Category B: AICPA Healthcare Guide (1997)

9  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

10 Financial Statements-NG  Statement of Operations  Statement of Changes in Net Assets  Statement of Financial Position  Statement of Cash Flows

11 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)


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