1 / 10

Understanding Government Nonprofits: Financial Reporting and Budgeting Practices

This introduction to Government Nonprofits (GNPs) explores the unique characteristics and financial reporting frameworks of various GNPs, including cities, counties, and nonprofits. It covers the differences between GNPs and businesses—highlighting factors such as the absence of profit motives and the significance of budgets as legal financial documents. The text identifies main users of financial reports, including citizens, investors, and governing boards, while discussing accountability, compliance, and efficiency in financial reporting, as outlined by GASB and FASB standards.

chessa
Télécharger la présentation

Understanding Government Nonprofits: Financial Reporting and Budgeting Practices

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction Chapter 1: Getting to know you….

  2. Comparison of GNPs with Business • Different mission - no profit motive • Budget - legal document • most significant financial document • budgets drive accounting • Level of services - expenditures drive revenues • Need to assure interperiod equity

  3. What other Characteristics? • Many different types of GNPs • cities, towns, counties, school districts, special tax districts, states, townships, hospitals, universities • schools, hospitals, social service orgs., universities, civic orgs., cultural orgs., religious orgs., foundations, etc.) • Short-term focus of managers • Business-type activities

  4. What is a Government? • Indicators of governments: • power to tax • right to assess residents’ annual fees • power to issue tax-exempt debt • governing body either elected by the citizens or appointed by another government • another government can dissolve it or assume its assets

  5. Purposes of Financial Reporting • Assess financial condition • Compare actual results with the budget • Determine compliance with laws and regulations • Evaluate efficiency and effectiveness

  6. Uses of Financial Reports • Main users: • 3 main users identified by GASB: • citizens and taxpayers • investors and creditors • governing boards (legislators) • Other users • donors and grantors • regulatory and oversight agencies • employees and other constituents

  7. Objectives of Financial Reporting • GASB Objectives - for S&L governments • accountability (interperiod equity, budgetary and fiscal compliance, service efforts and accomplishments) • current standards - compliance reporting • dual model proposed • FASB Objectives - for not-for-profits • similar to GASB, but with less emphasis on budgetary compliance

  8. Who Establishes Standards? • GASB • FASB • AICPA Hierarchy - pg. 26 - 1989 agreement on GAAP • FASAB- for federal government (GAO, Treasury, OMB)

  9. Problem 1-6 • impact on budget? • impact on YE financial statements? • impact on economic well-being? • Impact: story or status?

  10. Problem 1-10: How to Account? 1. 2. 3. 4.

More Related