Chapter 13 - Accounting for Not-for-Profit Organizations

CHAPTER 13:

ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS

OUTLINE

Number %ues!&'(s: 13-1 13-2 13-3 13-4 13-) 13-+ 13-13-. 13-/ 13-10 Cases: 13-1 13-2 13-3 Characteristics of the not-for-profit sector Operating statements of not-for-profits !e"uired financia# statements$ reporting issues C#assification of net assets$ (oard designated and temporari#y restricted net assets *tatement of functiona# e&penses Conditiona# and unconditiona# p#edges Program ser'ices and supporting ser'ices ,onated ser'ices *pecia# e'ents 1und-raising foundations and 'ariance po er

Type/Tas Identify Compare %&p#ain %&p#ain and distinguish %&p#ain ,istinguish ,istinguish %&p#ain %&p#ain %&p#ain

S!a!us "re: 1#/e$ 14-1, same Ne 14-3, re'ised 14-4, same 14-), same Ne 14--, same 14-., same Ne Ne

2emporari#y restricted net assets 2erms of gifts 3 restricted 's4 unrestricted Not-for-profit or go'ernment entity

Ana#yze and report !ecommend Ana#yze and e&p#ain

14-1, re'ised 14-2, same 1-4, re'ised

E)er*&ses/Pr'b+ems: 13-1 5arious 13-2 C#assification of re'enue7support and e&penses 13-3 ,onated ser'ices 13-4 8oint costs ith a fund-raising appea# 13-) Identify departures from 9AAP 13-+ *tatement of acti'ities 13-!ecording re'enue and e&pense transactions 13-. !ecording and reporting transactions 13-/ !ecording and reporting transactions 13-10 Prepare a## four financia# statements

6u#tip#e choice 6atching %'a#uate, compute %&p#ain %'a#uate and discuss %'a#uate 8ourna# entries 8ourna#ize, report 8ourna#ize, report Prepare statements

14-1, re'ised 14-2, re'ised 14-3, re'ised 14-4, same 14-), same 14-+, same Ne Ne Ne 14-., same

13-1

Chapter 13 - Accounting for Not-for-Profit Organizations

CHAPTER 13:
Ans ers to :uestions

ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS

13-14 As discussed in the chapter, nongo'ernmenta# not-for-profit organizations differ from those in the pu(#ic ;go'ernmenta#< sector (ecause they do not ha'e the po er to ta& citizens or issue ta&-e&empt de(t, are not contro##ed (y or financia##y accounta(#e to a go'ernment, and do not ha'e popu#ar e#ection of mem(ers of their go'erning (oard or appointment of (oard mem(ers (y a go'ernment4 =oth types of organizations may depend on contri(utions and charges for ser'ices for financing their operations4 2his is particu#ar#y true for nongo'ernmenta# not-for-profit organizations4 A not-for-profit organization ;N1P< is different than a (usiness in the for-profit sector (ecause it has no o ners ho e&pect a return on their in'estment4 In addition, an N1P operates for purposes other than pro'iding goods and ser'ices at a profit4 %&amp#es> Not-for-profit sector 3 9ir# *couts of America Pu(#ic ;go'ernmenta#< sector 3 Co#orado *tate ?ni'ersity Pri'ate, (usiness sector 3 6icrosoft, Inc4 13-24 @hi#e the operating statements for nongo'ernmenta# N1Ps and go'ernmenta# N1Ps reporting as (usiness-type entities report su(stantia##y the same information, the form in hich the information is presented has some differences4 1or e&amp#e> N'(,'-er(me(!a+ N'!-.'r-pr'.&!s 9enera##y tit#es the statement the statement of acti'ities Considera(#e f#e&i(i#ity in formatting the statement !eports changes in the three net asset categories for the reporting period Identifies e&penses as program and support ;either on the face of the financia# statement or in the notes< G'-er(me(!a+ N'!-.'r-pr'.&!s 2it#es the statement the statement of re'enues, e&penses, and changes in net position 6ust pro'ide a format that identifies operating and nonoperating acti'ities !eports the changes in tota# net position for the reporting period No simi#ar re"uirement

13-34 1A*= ASC /).-20)-4) re"uires a## nongo'ernmenta# not-for-profit organizations to present a statement of financia# position ;or (a#ance sheet<, a statement of acti'ities, and a statement of cash f#o s for the entity as a ho#e4 In addition to these three statements, 'o#untary hea#th and e#fare organizations must a#so present a statement of functiona# e&penses4

13-2

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, Ans ers ;ContAd<

13-44 1A*= ASC /).-20)-4) re"uires not-for-profit organizations to separate net assets into the three c#assifications of unrestricted, temporari#y restricted, and permanent#y restricted4 ?nrestricted are contri(utions recei'ed ithout restrictions on their use (y donors4 2emporari#y restricted net assets are contri(utions or unconditiona# promises to gi'e for hich the donor has imposed restrictions as to the period of use or purpose for hich the resources can (e used4 @hen temporary restrictions ha'e (een met, temporari#y restricted net assets are decreased and unrestricted net assets are increased (y reporting the amount as a re#ease of restriction in the statement of acti'ities4 Permanent#y restricted net assets are contri(utions or unconditiona# promises to gi'e for hich the donor re"uires that the principa# amount of the gift (e conser'ed, (ut the use of earnings is unrestricted un#ess the donor specifies that the earnings (e used for a specific purpose4 Board designated net assets is a su(set of unrestricted net assets4 ,o##ars are mo'ed from the unrestricted net asset category to (oard designated net assets hen the (oard taBes action4 Action to set aside a portion of net assets for a future purpose is usua##y ref#ected in the minutes to a (oard meeting4 %&amp#es might inc#ude repair of (ui#dings or e&pansion of programs4 As easi#y as a (oard can designate a specia# purpose for unrestricted net assets, it can CundesignateD those net assets, so (oard designated net assets are sti## c#assified as unrestricted net assets4 1or an asset to (e considered temporari#y restricted the restriction must (e imposed (y a donor4 13-)4 A statement of functiona# e&penses pro'ides an ana#ysis of the costs associated ith each of the program ser'ices and supporting ser'ices4 It a##o s the ratio of program e&penses to tota# e&penses and support e&penses to tota# e&penses to (e computed and compared to other entities4 In addition, the statement of functiona# e&penses sho s the natura#, #ineitem or o(Eect of e&pense$ such as, sa#aries, supp#ies, rent or occupancy costs, and depreciation4 I##ustration 13-) in the te&t pro'ides a statement of functiona# e&penses that i##ustrates the re#ationship (et een functiona# e&penses and natura# c#assifications of e&penses4 A statement of acti'ity inc#udes (oth re'enues and e&penses, ith e&penses usua##y presented (y functiona# category4 *o the tota# of each co#umn in the statement of functiona# e&penses shou#d appear on the statement of acti'ities in the e&pense section4 1A*= re"uires that program and support e&penses (e reported on the statement of acti'ities or in the notes to the financia# statements4 13-+4 An unconditiona# p#edge re"uires the passage of time or performance on the part of the not-for-profit entity4 As a resu#t, unconditiona# p#edges are genera##y recognized in the year the p#edge is made4 A conditiona# p#edge, ho e'er, depends on the occurrence of a future and uncertain e'ent4 *ince it is unBno n hether the conditions imposed on the p#edge i## (e met, a conditiona# p#edge is not recognized at the time the p#edge is made, (ut it is disc#osed4 2he conditiona# p#edge i## (e recognized hen su(stantia##y a## of the conditions imposed (y the donor are met4 13--4 %&penses in a not-for-profit organization are di'ided into functiona# categories> ;1< program ser'ices, and ;2< supporting ser'ices e&penses4 Program service expenses are
13-3

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, Ans ers, 13-- ;ContAd<

those that re#ate to the programs the N1P offers to the pu(#ic$ for e&amp#e, the Community 1ami#y *er'ice Agency ;see I##ustration 13--< reports adoption, counse#ing, foster home care, and specia# outreach proEect as its programs4 Supporting services expenses are those that are necessary to maBe program ser'ices possi(#e4 2hese e&penses are typica##y c#assified into management and genera# e&penses and fund-raising e&penses4 2he time that an e&ecuti'e director spends in o'era## administration of the organization, ith the (oard of directors, in (udgeting and strategic p#anning meetings, and o'ersight of accounting and financia# reporting is considered genera# and administrati'e, and, conse"uent#y, is c#assified as support e&penses4 Fo e'er, many e&ecuti'e directors i## a#so spend considera(#e time in fund-raising, and, particu#ar#y in sma##er N1Ps, on de#i'ering the programs4 It is proper, then, to a##ocate a portion of the e&ecuti'e directorAs sa#ary and fringe (enefits to the functiona# categories of fund-raising e&penses and program e&penses, using an appropriate a##ocation method4 1unctiona# reporting of e&penses in this manner is important since o'ersight (odies and donors p#ace importance on the ratio of program ser'ices e&penses to tota# e&penses4 In other ords, they asB, C1or e'ery do##ar the organization spends, ho many cents go to the organizationAs programs, rather than to management and genera# and fund-raisingGD 13-.4 2o (e recorded as contri(ution re'enue and either an e&pense or asset, a donated ser'ice must ;1< create or enhance nonfinancia# assets or ;2< re"uire specia#ized sBi##s, that are pro'ided (y indi'idua#s possessing those sBi##s, and typica##y ou#d ha'e to (e purchased if not pro'ided (y donation4 A good e&amp#e of a donated ser'ice that meets the first criteria ou#d (e an e#ectrician contri(uting ser'ices for the ne ing of a not-for-profit e#ementary schoo#4 An e&amp#e of the second criteria ou#d (e medica# doctors and nurses ho contri(ute their time to pro'ide medica# ser'ices that are centra# to an organizationAs mission4 13-/4 1A*= standards pro'ide an option for reporting co##ections hich inc#ude historica# treasures and orBs of art4 Assuming the museum has met the criteria for recognizing its porce#ain co##ection as an asset, the museum has the option of recognizing the co##ection or reporting the co##ection in the notes4 2herefore, it is possi(#e the reason the co##ection is not recognized is (ecause the museum has simp#y opted not to recognize the co##ection4 It is a#so possi(#e the museum has not met the criteria for the definition of a co##ection as an asset4 2o meet the definition of a co##ection under 1A*= ASC /).-3+0-20 the museum must> 14 Fo#d the co##ection for pu(#ic e&hi(ition, education, or research in furtherance of pu(#ic ser'ice rather than financia# gain4 24 Protect, Beep unencum(ered, care for, and preser'e the co##ection4

13-4

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, Ans ers, 13-/ ;ContAd<

34 *u(Eect the co##ection to an organizationa# po#icy that re"uires the proceeds of items that are so#d from the co##ection to (e used to ac"uire other items for the co##ection4 13-104 *imi#ar to rea#ized gains and #osses, unrea#ized gains and #osses are reported (y N1P entities on the statement of acti'ities4 ?nrea#ized gains and #osses i## (e reported as unrestricted net assets on the statement of acti'ities, un#ess their use is restricted (y the donor or #a 4 2his differs from reporting (y for-profit entities, here unrea#ized gains and #osses are reported as other comprehensi'e income un#ess the gains7#osses re#ate to trading securities4 9enera##y, for-profit entities report other comprehensi'e income in the statement of stocBho#dersA e"uity4 *o#utions to Cases 13414 a. An e&amp#e of an e'a#uation memo ou#d (e as fo##o s4 ,ate> 2o> Chair, =ayto n Area ?nited @ay A##ocation Pane# 1rom> HIour NameJ, 1inancia# Ad'isor !e> Ana#ysis of =ayto n !eha(i#itati'e Camp for ,isa(#ed Chi#drenAs financia# condition and recommendations for 1I 201) funding As you and the mem(ers of the pane# may reca##, e ere "uite concerned during the e'a#uation of this organization for 1I 2014 funding that their financia# reser'es ere precarious#y #o 4 At that time, I raised the issue a(out the organizationAs a(i#ity to continue to sustain its program at the (udgeted #e'e# and recommended that its (udget re"uest from the ?nited @ay (e cut in ha#f unti# such time its financia# management impro'ed4 I a#so noted that the campAs 1I 2013 statement of acti'ities sho ed that on#y )- percent of its tota# e&penses ere incurred for program ser'ices4 2he fu## pane# su(se"uent#y decided to send the organization a message a(out our concerns and reduced the agencyAs (udget re"uest (y K),000 to K2),000, the amount the ?nited @ay =oard u#timate#y appro'ed4 ,uring #ast yearAs meeting, the campAs director and chairman of its (oard promised to taBe immediate action to impro'e the campAs financia# condition, inc#uding such actions as more fund-raising acti'ity and, if necessary, cutting support staff at the camp4 @hen I first #ooBed at the 1I 201) (udget re"uest and 1I 2014 financia# statements for the =ayto n !eha(i#itati'e Camp, I as 'ery surprised and p#eased (y the e'ident impro'ement the organization had made since #ast year in its financia# situation4 After c#oser inspection, ho e'er, I noted a suspicious reduction of K31,/34 in the amount of the in'estments the camp has (een carrying for se'era# years that are restricted for (ui#ding e&pansion, together ith an e&act amount of decrease in temporari#y restricted net assets4 @hat rea##y got my attention as that there as no increase in the (a#ance of the (ui#dings account ;the on#y change in that account as
13-)

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, Case 13-1 ;ContAd<

a decrease for depreciation of K-,240<4 It (ecame apparent that the camp had remo'ed money from restricted in'estments and used the money to (o#ster its unrestricted financia# reser'es4 @hen I noted the apparent funds transfer, I contacted the campAs director ho informed me that the origina# donor, ho had contri(uted K100,000 se'era# years ago for future (ui#ding e&pansion, as no #onger #i'ing4 1urther, after an e&hausti'e search she as una(#e to #ocate a ritten agreement regarding the contri(ution4 ?pon reporting these facts to the (oard of directors, a reso#ution as passed authorizing the use of K3-,)00 of in'estments for unrestricted purposes in 1I 20144 *he stated that additiona# transfers cou#d occur in future years, if the need arises4 *o that you and the other mem(ers of the pane# can see the impact this K3-,)00 transfer has on the campAs financia# position, I ha'e ca#cu#ated the fo##o ing Bey measures (oth inc#uding and e&c#uding the K3-,)00 amount4 Norma##y, a current ratio o'er 240 and "uicB ratio o'er 140 are considered reasona(#e4 2hree months or more of financia# reser'es ou#d (e considered reasona(#e4 As you can see, the campAs financia# impro'ement ithout the K3-,)00 is minima#4 In short, the organization ou#d sti## (e financia##y distressed ithout the "uestiona(#e K3-,)00 transfer4 1I 2014 K3-,)00 Inc#uded K3-,)00 %&c#uded Current !atio> ;current assets7 current #ia(i#ities< :uicB !atio> ;;current assets 3 prepaid assets<7 current #ia(i#ities< ,ays of e&penses co'ered (y financia# reser'es ;;;current assets 3 current #ia(i#ities< 7 tota# e&penses< M 3+) days in a year< K.1,0./ 7 K2/,141 L 24-. K+),)30 7 K2/,141 L 242) K43,)./ 7 K2/,141 L 14)0 K2.,030 7 K2/,141 L 4/+ 1I 2013 K4+,3+. 7 K40,-.+ L 1414 K2.,+20 7 K40,-.+ L 4-0

;;K.1,0./ - K2/,141< 7 K23.,/32< M 3+) L -/44 days

;;K43,)./ - K2/,141< 7 K23.,/32< M 3+) L 2241 days

12 days, pro'ided in case4

13-+

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, Case 13-1 ;ContAd<

=ased on the facts as I Bno them and the foregoing ana#ysis, I recommend that the ?nited @ay ha'e an attorney ith e&perience in such matters #ooB at the situation concerning use of donor-restricted resources for unrestricted operating purposes4 !espectfu##y su(mitted, HIour signatureJ b. 2he ans er to part ( i## depend on the indi'idua# students4 *tudents shou#d (e concerned ith funding gi'en the campAs use of donor-restricted funds4 *tudents might raise concerns a(out ethics and Cearnings management4D 2he fo##o ing is pro'ided for use in discussion4 It appears that the director and (oard of the =ayto n !eha(i#itati'e Camp may ha'e 'io#ated their fiduciary duty (y using donor-restricted resources for unrestricted operating purposes4 @hy the campAs independent auditor did not address this issue in its report is puzz#ing4 An independent attorney ith e&perience in this area shou#d (e engaged to in'estigate this situation4 If a su(se"uent in'estigation determines that the director and (oard of directors acted in an i##ega# manner, #ega# charges cou#d (e fi#ed against them4 In addition, the heirs of the origina# donor might consider (ringing ci'i# charges against the agency to force reinstatement of the restricted resources4 1ina##y, depending on state regu#atory ru#es and po#icies, the state cou#d re'oBe the organizationAs charter and force it to #i"uidate4 One possi(#e so#ution ou#d (e for the camp to seeB remedy from the courts, perhaps using the argument that they no #onger intend to e&pand the (ui#ding ;a#though there is no indication that such a po#icy decision has (een made<4 c. Again this i## depend on the studentsA reaction to the acti'ities undertaBen (y the camp ith regard to the use of funds ith donor imposed restrictions4 C#ear#y, performance has the appearance of impro'ing as a resu#t of the use of the restricted assets4 13-24 a4 2he *he#ter Association has unrestricted net assets e"ua# to #ast yearAs operating (udget, so any unrestricted contri(ution made (y the potentia# donor i## cause ne&t yearAs ?nited @ay a##ocation to (e reduced4 In effect, he ou#d maBe a gift to the ?nited @ay and not to the *he#ter Association4 2he donor shou#d (e encouraged to maBe a restricted contri(ution so that the association i## ha'e use of the money4 Fis restriction can re#ate to the year in hich the gift is spent or to the purposes for hich it is spent4 b4 2he association may (e re"uired (y its (oard or (y-#a s to ha'e an independent audit (y a CPA4 If so, the donor can re'ie a statement of financia# position, statement of acti'ities, statement of cash f#o s, and statement of functiona# e&penses4 2he state may re"uire audited financia# statements to (e fi#ed ith the appropriate state agency4 As a ta&-e&empt entity, this association is a#so re"uired to send a 1orm //0
13--

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, Case 13-2 ;ContAd<

to the I!* each year ;see Chapter 14 for more information on regu#atory, ta&ation and performance issues<4 1rom this information the donor i## (e a(#e to see the amount of contri(utions restricted, hich ou#d inc#ude his contri(ution and any other restricted contri(utions4 Fe can a#so see the amount of resources e&pended for program purposes, and the amount of restricted contri(utions ;net assets re#eased from restrictions< re#eased for those purposes4 2he financia# audit produces an opinion as to hether the financia# statements present the financia# position fair#y in conformity ith 9AAP, (ut does not address efficiency and effecti'eness4 As such, it pro'ides no he#p in assessing hether the agency as efficient and effecti'e in using the donorAs gift4 2he (oard ou#d ha'e to contract ith a consu#tant or CPA firm for a performance audit to get this information4 13-34 Issue: Is the Nati'e American Feritage Center and 6useum a go'ernmenta# not-forprofit entity or nongo'ernmenta# not-for-profit entityG 2his is an essentia# determination (ecause if the museum is go'ernmenta# the auditor i## need to e&amine hether the museumAs financia# statements are in conformity ith 9A*= standards4 If it is nongo'ernmenta#, its financia# statements must conform to 1A*= standards4 Analysis: 2here is no e'idence to suggest that the Feritage Center and 6useum is a go'ernment per se, that is, a Cpu(#ic corporation or (ody corporate and po#itic4D 2hus, it is necessary to app#y the three AICPA criteria #isted in the te&t to determine hether the organization is go'ernmenta# in character4 On#y t o of the go'erning (oard are appointed or appro'ed (y any one go'ernmenta# entity ;6ound City Counci#<, thus, criterion a is not met4 2here is no e'idence that a go'ernment has any po er to disso#'e the museum if it ished to do so according to the origina# charter4 Additiona##y, the net assets of the museum are a##ocated among entities$ they do not re'ert to a go'ernment4 2hus, it does not appear criterion b is met4 It doesnAt appear that the museum has the po er to enact or enforce a ta& #e'y ;criterion c<4 On#y one of the three criteria needs to (e met for the museum to (e considered go'ernmenta# in character4 It does not appear, (ased on the information pro'ided, that any of the criteria ha'e (een met4 Carefu# app#ication of the AICPA criteria to the fact situation in this case, #eads one to reach the conc#usion that the organization is nongo'ernmenta# in character and therefore shou#d conform to 1A*= financia# reporting standards if it e&pects to recei'e an un"ua#ified ;c#ean< audit opinion4 *o#utions to %&ercises and Pro(#ems 13-14 14 2. 34 44 )4 b. d4 c4 a. c4 +4 d4 -4 d4 .. b4 /4 c4 104 a.

13-.

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions ;ContAd<

13-2. 1. 2. 3. a, f (g if the gift shop is not related to the museums program) g b, f 5. 6. 7. h d b (assuming the computers are capitalized, if not also include f) a, c

. 13-3.

!.

1. " 5. 2. # 6. 3. " 7. . " !.

# # " #

13- . 1. $ased on the information pro%ided, it appears that the purpose, audience, and content criteria are met for this acti%it& to 'e considered a 'ona fide acti%it&. (he )oint costs should 'e allocated 'et*een the functional program e+penses and support e+penses, including fund-raising. (he purpose of the door-to-door campaign is to help accomplish the entit&s mission,to increase rec&cling. (he audience is targeted 'ecause it is not rec&cling much, rather

13-/

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-4 ;ContAd<

than 'ecause it has a high li-elihood of contri'uting to the organization. (he content of the campaign is to moti%ate the audience to action, specificall& to get the audience to rec&cle more. 2. (he purpose and content criteria appear to 'e met. ho*e%er, the audience criteria are not met. (he audience is targeted 'ased on the li-elihood it *ill pa& the high price of admission and conse/uentl& ma-e a charita'le contri'ution. 0n this case, all the costs of the acti%it& should 'e reported as fund-raising costs. 3. (his acti%it& fails all three criteria to 'e considered a 'ona fide acti%it& under 123$ ASC 45!-725- 5. (he purpose of the solicitation campaign is primaril& to raise contri'utions (there is no call to action), not to promote the mission of the organization. (he targeted audience is one that is middle-class and li-el& to contri'ute. in fact, their children *ould most li-el& not /ualif& to attend the camp. (he content of the campaign does not moti%ate people to action. 3impl& as-ing people to read an informational pamphlet is not calling them to act in a *a& that ad%ances the mission of the organization. 13-5. a. 2s the independent auditor, it *ould appear &ou *ould not 'e a'le to issue an un/ualified opinion on these financial statements. (he statements appear to 'e more appropriate for a 'usiness organization than for a not-for-profit organization. (*o ma)or departures from 6227 are apparent8

13-10

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-) ;ContAd<

1. "et assets are not classified on the 'alance sheet into the three re/uired categories of unrestricted, temporaril& restricted, and permanentl& restricted, as applica'le, nor does the statement of acti%ities sho* changes in those categories of net assets. 2. 9+penses are reported as natural rather than the re/uired functional classification. "ote that it is possi'le the 'alance sheet and statement of acti%ities are in conformit& *ith 6227 if unrestricted and restricted net assets, and e+penses '& functional classification are disclosed in the notes to the financial statements. (here is no indication, ho*e%er, that such disclosures e+ist in this case. $esides these non-6227 issues *ith the t*o statements pro%ided, there is no indication that the t*o other re/uired financial statements ha%e 'een prepared ,a statement of cash flo*s and a statement of functional e+penses. 0n addition, although not re/uired '& 6227, it *ould 'e helpful if assets and lia'ilities on the 'alance sheet *ere classified as current and noncurrent. 7resenting a 'alance sheet rather than a statement of financial position is permissi'le under 123$ standards. b. #ou should inform the organizations director and:or 'oard of directors that the financial statements are not fairl& presented in conformit& *ith 6227 and that &ou *ill ha%e to issue an ad%erse opinion unless the statements are re%ised to conform to 123$ standards (ASC 45!-255- 5) and an& 123$ pronouncements that ma& appl&. 0f the organization insists on an un/ualified opinion, 'ut is not *illing to compl& *ith 123$ guidance, &ou should not accept the engagement.

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Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions ;ContAd<

13-6. a. "o. (he presented statement is not in proper form for a statement of acti%ities. 2 statement of acti%ities should sho* changes in unrestricted, temporaril& restricted, and permanentl& restricted net assets. 2dditionall&, the statement should either displa& the e+penses '& function or note that e+penses '& function are disclosed in the notes to the financial statements. b. 3ome /uestions for the controller8 1. ;ere there no fund-raising e+penses related to the solicitation of <111, 55 in contri'utions= 2. ;ere the contri'utions of <55,555 for the 2'stract 9+hi'it temporaril& restricted '& the donor, such that the < ,555 e+cess of re%enues o%er e+penses *ill ha%e to 'e returned or spent on the program= 3. 3hould the <5,555 of e/uipment for the 7u'lic 9+hi'its program 'e capitalized and depreciated= ;hat is the capitalization polic& of the organization= c. (he directors should appl& for grants or solicit contri'utions of at least < 6,555, the total cost of operating a similar program. (oo often not-forprofit organizations re/uest onl& the direct or %aria'le costs of a program and do not as- for indirect cost reco%er&. "ote, ho*e%er, that if the contri'utions or grants are temporaril& restricted for this purpose, then an& e+cess funds *ould 'e e+pected to 'e returned if not spent on the program. d. 2 donor should re/uest a full set of audited financial statements. 2 statement of financial position and statement of cash flo*s *ill pro%ide additional information a'out the sol%enc& of the organization and managerial a'ilit& of the directors and managers of the organization. 0n addition, the notes to the financial statements pro%ide %alua'le
13-12

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-+ ;ContAd<

information that descri'es man& of the elements of the financial statements, such as contingent lia'ilities, in%estments, and %olunteer ser%ices and in-ind contri'utions.

13-7.

(>9 3>2""?" @?AAB"0(# C0(@>9" 69"9D2E F?BD"2E @23> @?"(D0$B(0?"3,B"D93(D0@(9G @?"(D0$B(0?"3,(9A7?D2D0E# D93(D0@(9G Ge'its 2!,555 @redits 25,555 3,555 155 155

1.

2.

7D?6D2A 9H79"393 @?"(D0$B(0?"3,B"D93(D0@(9G

3.

"? (D2"32@(0?" 03 D9@?DG9G I A92E 39DJ0@9 2"G 7D972D2(0?" G?93 "?( D9KB0D9 2 379@02E0L9G 3C0EE

@23> 5,555 @?"(D0$B(0?"3,(9A7?D2D0E# D93(D0@(9G 5,555 ,155 ,155

5.

7D?6D2A 9H79"393 @23> "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G

3,555 3,555

13-13

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, ;ContAd<

13-!. a. 1. D9"( 9H79"39

3?EJ9 69"9D2E F?BD"2E Ge'its 1 ,555 @redits 1 ,555

@?"(D0$B(0?"3,B"D93(D0@(9G 2. @23> 16 ,555 @?"(D0$B(0?"3,B"D93(D0@(9G @?"(D0$B(0?"3,(9A7?D2D0E# D93(D0@(9G 3. 32E2D093 M ;2693 9H79"39 @23> 32E2D093 M ;2693 72#2$E9 . @?"(D0$B(0?"3 D9@90J2$E9 @?"(D0$B(0?"3,(9A7?D2D0E# D93(D0@(9G G03@?B"( ?" @?"(D0$B(0?"3 D9@90J2$E9 5. 9KB07A9"( M 1BD"0(BD9 @23> @?"(D0$B(0?"3,B"D93(D0@(9G 12,655 155,555 111,555

11 ,555 55,555

45,555 16,555

43, 55 6,655

5,555 7,655

13-14

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

3?EJ9 69"9D2E F?BD"2E Ge'its 6. (9E97>?"9 9H79"39 7D0"(0"6 M 7?3(269 9H79"39 3B77E093 9H79"39 @23> 2@@?B"(3 72#2$E9 5,255 12,555 2,155 15,755 3,655 @redits

7. "? (D2"32@(0?" 03 D9@?DG9G I "? 379@02E0L9G 3C0EE 03 D9KB0D9G. !. G97D9@02(0?" 9H79"39 2EE?;2"@9 1?D G97D9@02(0?",9KB07A9"( M 1BD"0(BD9 1,765 (9/uipment8 <5,555:5 &earsN<1,555. 1urniture8 <7,655:15 &earsN<765) 1,765

4. 7B$E0@ >92E(> 9GB@2(0?" 7D?6D2A @?AAB"0(# 39DJ0@9 7D?6D2A A2"269A9"( M 69"9D2E 1B"G-D2030"6 32E2D093 M ;2693 9H79"39 D9"( 9H79"39 (9E97>?"9 9H79"39 7D0"(0"6 M 7?3(269 9H79"39 3B77E093 9H79"39 G97D9@02(0?" 9H79"39

7,615 5,312 2!,421 24,212 111,555 1 ,555 5,255 12,555 2,155 1,765

13-1)

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd< 2EE?@2(0?" ?1 "2(BD2E 9H79"393 (? 1B"@(0?"3 7u'lic >ealth 9ducation <3!,!55 3,555 1,355 3,555 525 5 < 7,615 @ommunit& 3er%ice <33,355 2,!55 1,5 5 2, 55 25 352 < 5,312 Aanagement M 6eneral <16,655 ,455 1,!25 ,255 735 616 <2!,421 1und-raising <22,255 2,!55 1,5 5 2, 55 25 352 <24,212 (otal <111,555 1 ,555 5,255 12,555 2,155 1,765 <1 6,565

3alar& M ;ages 9+pense Dent 9+pense (elephone 9+pense 7rinting M 7ostage 9+pense 3upplies 9+pense Gepreciation 9+pense (otal

3?EJ9 69"9D2E F?BD"2E Ge'its 15. "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G 11. @?"(D0$B(0?"3,B"D93(D0@(9G (trans. 1, 2 and 5) B"D93(D0@(9G "9( 2339(3 7B$E0@ >92E(> 9GB@2(0?" @?AAB"0(# 39DJ0@9 A2"269A9"( M 69"9D2E 1B"G-D2030"6 15, 65 7,615 5,312 2!,421 24,212 135,655 55,555 55,555 @redits

@?"(D0$B(0?"3,(9A7?D2D0E# D93(D0@(9G (trans. 2 and ) (9A7?D2D0E# D93(D0@(9G "9( 2339(3

1 3, 55 1 3, 55

13-1+

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

3?EJ9 69"9D2E F?BD"2E (9A7?D2D0E# D93(D0@(9G "9( 2339(3 "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G B"D93(D0@(9G "9( 2339(3 55,555 55,555 55,555 Ge'its 55,555 @redits

13-1-

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

b.

3?EJ9 3(2(9A9"( ?1 2@(0J0(093 1?D (>9 #92D 9"G9G G9@9A$9D 31, 251 B"D93(D0@(9G (9A7?D2D0E# D93(D0@(9G (?(2E

D9J9"B9 M ?(>9D 3B77?D(8 @?"(D0$B(0?"3 "9( 2339(3 D9E9239G 1D?A D93(D0@(0?" 32(0312@(0?" ?1 7BD7?39 (?(2E D9J9"B9 M ?(>9D 3B77?D( 9H79"3938 7B$E0@ >92E(> 9GB@2(0?" @?AAB"0(# 39DJ0@93 A2"269A9"( M 69"9D2E 1B"G-D2030"6 (?(2E 9H79"393 0"@D9239 0" "9( 2339(3 $960""0"6 "9( 2339(3 9"G0"6 "9( 2339(3 2!,421 24,212 1 6,565 34,5 5 5 < 34,5 5 OOOOOOO OOOOOOO 43, 55 5 < 43, 55 7,615 5,312 7,615 5,312 2!,421 24,212 1 6,565 132,4 5 5 <132,4 5 55,555 1!5,655 (55,555) 43, 55 OOOOOOO 274,555 <135,655 <1 3, 55 <274,555

13-1.

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

c.

3?EJ9 3(2(9A9"( ?1 10"2"@02E 7?30(0?" G9@9A$9D 31, 251

2339(38 @23> @?"(D0$B(0?"3 D9@90J2$E9 (less discount on contri'utions recei%a'le of <6,655) 9KB07A9"( M 1BD"0(BD9 (less allo*ance for accumulated depreciation of <1,765) (?(2E 2339(3 E02$0E0(0938 2@@?B"(3 72#2$E9 32E2D093 72#2$E9 (?(2E E02$0E0(093 "9( 2339(38 B"D93(D0@(9G (9A7?D2D0E# D93(D0@(9G (?(2E "9( 2339(3 (?(2E E02$0E0(093 2"G "9( 2339(3 34,5 5 43, 55 132,4 5 <152,5 5 < 3,655 16,555 14,655 15,! 5 <152,5 5 43, 55 < !,355

13-1/

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

d.

3?EJ9 3(2(9A9"( ?1 @23> 1E?;3 1?D (>9 #92D 9"G9G G9@9A$9D 31, 251

@23> 1E?;3 1D?A ?79D2(0"6 2@(0J0(0938 @23> D9@90J9G 1D?A @?"(D0$B(0?"3 @23> 720G (? 9A7E?#993 @23> 720G (? 3B77E09D3 "9( @23> 7D?J0G9G $# ?79D2(0"6 2@(0J0(093 @23> 1E?;3 1D?A 0"J93(0"6 2@(0J0(0938 7BD@>239 ?1 9KB07A9"( "9( 0"@D9239 0" @23> $960""0"6 @23> 9"G0"6 @23> D9@?"@0E02(0?" ?1 @>2"693 0" "9( 2339(3 (? "9( @23> 7D?J0G9G $# ?79D2(0"6 2@(0J0(0938 @>2"69 0" "9( 2339(3 2GFB3(A9"(3 (? D9@?"@0E9 @>2"693 0" "9( 2339(3 (? "9( @23> 7D?J0G9G $# ?79D2(0"6 2@(0J0(0938 G97D9@02(0?" 0"@D9239 0" "9( @?"(D0$B(0?"3 D9@90J2$E9 0"@D9239 0" 2@@?B"(3 72#2$E9 0"@D9239 0" 32E2D093 M ;2693 72#2$E9 601( ?1 1BD"0(BD9 @23> 7D?J0G9G $# ?79D2(0"6 2@(0J0(093 1,765 (43, 55) 3,655 16,555 (7,655) < 53,355 <132,4 5 (5,555) !,355 5 < !,355 <16 ,555 (45,555) (15,755) 53,355

13-20

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-. ;ContAd<

e.

3?EJ9 3(2(9A9"( ?1 1B"@(0?"2E 9H79"393 1?D (>9 #92D 9"G9G G9@9A$9D 31, 251
7D?6D2A 39DJ0@93 7u'lic >ealth 9ducation @ommunit& 3er%ice < 33,355 2,!55 1,5 5 2, 55 25 352 5,312 3B77?D( 39DJ0@93 Aanagemen t M 6eneral < 16,655 ,455 1,!25 ,255 735 616 2!,421 < 1undraising 22,255 2,!55 1,5 5 2, 55 25 352 24,212

(?(2E <111,555 1 ,555 5,255 12,555 2,155 1,765 <1 6,565

32E2D# M ;2693 9H79"39 D9"( 9H79"39 (9E97>?"9 9H79"39 7D0"(0"6 M 7?3(269 9H79"39 3B77E093 9H79"39 G97D9@02(0?" 9H79"39 (?(2E < < 3!,!55 3,555 1,355 3,555 525 5 7,615

<

<

<

13-4. a. 1or the %olunteers time to 'e recorded as a contri'ution and related e+pense the acti%ities performed '& the %olunteers *ould (1) re/uire specialized s-ill, (2) 'e pro%ided '& someone *ith the specialized s-ill, and (3) *ould generall& 'e purchased '& the 2rt Eeague if not contri'uted. (he pro'lem indicates that the %olunteers are greeting %isitors, handling securit&, and the sales of art *or-. 0t *ould not appear that an& of these acti%ities *ould re/uire a specialized s-ill, *hich *ould 'e the 'asis for the auditors recommendation not to record the %olunteer ser%ices.

13-21

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-/ ;ContAd<

b. 1. @23>

2D( E926B9 69"9D2E F?BD"2E Ge'its 65,735 @redits 25,!61 ,655 16,2!5 6,47 2, 52 4,65!

@?"(D0$B(0?"3,B"D93(D0@(9G 6D2"(3 D9@90J2$E9 A9A$9D3>07 GB93 (B0(0?" M 1993 @?AA0330?" D9J9"B9 72#2$E9 (? 2D(03(3

2.

@23> 0"J93(A9"( 0"@?A9,B"D93(D0@(9G 0"J93(A9"( 0"@?A9,(9A7?D2D0E# D93(D0@(9G

1,455 6!6 1,264 5,255 3,125 1,455 1!,555 1!,555 6,455 3,5!5 1,315 6 5 51,613 225 47

3.

6D2"(3 D9@90J2$E9 @?"(D0$B(0?"3,B"D93(D0@(9G G919DD9G D9J9"B9

D9"( 9H79"39 @?"(D0$B(0?"3,B"D93(D0@(9G

5.

32E2D# 9H79"39 B(0E0(# 9H79"39 7?3(269 M 3B77E093 9H79"39 A03@9EE2"9?B3 9H79"39 @23> 7D9720G 9H79"393 2@@?B"(3 72#2$E9 M 2@@DB9G 9H79"393

(7repaid 9+penses. <1,565-<! 5N<225 decrease8 2ccounts

13-22

Chapter 13 - Accounting for Not-for-Profit Organizations

7a&a'le and 2ccrued 9+penses. <2,7 6-<2,6 4N<47 increase)

Ch4 13, *o#utions, 13-/ ;ContAd<

2D( E926B9 69"9D2E F?BD"2E Ge'its 6. @23> 3>?D(-(9DA 0"J93(A9"(3 9KB07A9"( @23> 7. @?AAB"0(# 2D( 9GB@2(0?" @23> "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G !. G97D9@02(0?" 9H79"39 2EE?;2"@9 1?D G97D9@02(0?",9KB07A9"( "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G 1,6 2 1,6 2 1,6 2 1,6 2 !25 !25 !25 !25 2,!35 2,!35 2,455 2,455 @redits

13-23

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-/ ;ContAd<

2D( E926B9 69"9D2E F?BD"2E Ge'its 4. 9H>0$0(0?" 7D?6D2A @?AAB"0(# 2D( 9GB@2(0?" 7D?6D2A A2"269A9"( M 69"9D2E 1B"G-D2030"6 D9"( 9H79"39 32E2D# 9H79"39 B(0E0(# 9H79"39 7?3(269 M 3B77E093 9H79"39 A03@9EE2"9?B3 9H79"39 G97D9@02(0?" 9H79"39 15. 72#2$E9 (? 2D(03(3 @23> 11. @?"(D0$B(0?"3,B"D93(D0@(9G (trans. 1, 3 and ) A9A$9D3>07 GB93 (B0(0?" M 1993 @?AA0330?" D9J9"B9 0"J93(A9"( 0"@?A9,B"D93(D0@(9G B"D93(D0@(9G "9( 2339(3 9H>0$0(0?" 7D?6D2A @?AAB"0(# 2D( 9GB@2(0?" (trans. 7 and 4) A2"269A9"( M 69"9D2E 1B"G-D2030"6 16,2!5 6,47 2, 52 6!6 ,564 21, 72 22,247 17,!43 15,735 1,4!1 4,65! 4,65! 21, 72 21, 72 17,!43 15,735 1!,555 6,455 3,5!5 1,315 6 5 1,6 2 @redits

0"J93(A9"( 0"@?A9,(9A7?D2D0E# D93(D0@(9G

1,264

13-24

Chapter 13 - Accounting for Not-for-Profit Organizations

(9A7?D2D0E# D93(D0@(9G "9( 2339(3

Ch4 13, *o#utions, 13-/ ;ContAd<

1,264

2D( E926B9 69"9D2E F?BD"2E (9A7?D2D0E# D93(D0@(9G "9( 2339(3 "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",(9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G,32(0312@(0?" ?1 7BD7?39 D93(D0@(0?",B"D93(D0@(9G B"D93(D0@(9G "9( 2339(3 2, 67 2, 67 2, 67 Ge'its 2, 67 @redits

13-2)

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-/ ;ContAd<

c.

2D( E926B9 3(2(9A9"( ?1 2@(0J0(093 1?D (>9 #92D 9"G9G FB"9 35, 251 (emporaril& 7ermanentl& Bnrestricted Destricted Destricted (otal

D9J9"B9 M ?(>9D 3B77?D(8 @?"(D0$B(0?"3 A9A$9D3>07 GB93 (B0(0?" M 1993 @?AA0330?" D9J9"B9 0"J93(A9"( 0"@?A9 "9( 2339(3 D9E9239G 1D?A D93(D0@(0?" 32(0312@(0?" ?1 7BD7?39 (?(2E D9J9"B9 M ?(>9D 3B77?D( 9H79"3938 9H>0$0(0?" 7D?6D2A @?AAB"0(# 2D( 9GB@2(0?" A2"269A9"( M 69"9D2E17,!43 1B"G-D2030"6 (?(2E 9H79"393 G9@D9239 0" "9( 2339(3 $960""0"6 "9( 2339(3 9"G0"6 "9( 2339(3 15,735 72,347 (1,652) 4,511 < 7, 54 OOOOOOO OOOOOOO (1,14!) 13,2 5 < 12,5 7 5,767 < 5,767 OOOOOOO OOOOOOO 21, 72 22,247 21, 72 22,247 17,!43 15,735 72,347 (2,!55) 2!,523 < 25,223 75,745 (1,14!) OOOOOOO 64,547 2, 67 (2, 67) OOOOOOO < 1,4!1 16,2!5 6,47 2, 52 6!6 < 1,264 < 1,4!1 16,2!5 6,47 2, 52 1,455

13-2+

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions, 13-/ ;ContAd<

d.

2D( E926B9 3(2(9A9"( ?1 10"2"@02E 7?30(0?" FB"9 35, 251

2339(38 @23> ($$, trans. 1, 2, 5, 6, 7, and 15) 3>?D(-(9DA 0"J93(9A9"(3 ($$ and trans. 1) 6D2"(3 D9@90J2$E9 ($$, trans. 1 and 3) 7D9720G 9H79"39 (trans. 5) 2339(3 D93(D0@(9G8 1?D 9"G?;A9"(8 0"J93(A9"(3 9KB07A9"( (less allo*ance for accumulated depreciation of < ,56!) (trans !) (?(2E 2339(3 E02$0E0(0938 2@@?B"(3 72#2$E9 M 2@@DB9G 9H79"393 (trans. 5) G919DD9G D9J9"B9 ($$, trans. 3) (?(2E E02$0E0(093 "9( 2339(38 B"D93(D0@(9G (9A7?D2D0E# D93(D0@(9G 79DA2"9"(E# D93(D0@(9G (?(2E "9( 2339(3 (?(2E E02$0E0(093 2"G "9( 2339(3 7, 54 12,5 7 5,767 25,223 < 32,664 < 2,7 6 ,755 7, 6 !,112 <32,664 5,767 < 3,714 4,211 5,525 ! 5

13-2-

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions ;ContAd<

13-15. a. FB"9 35, 251 2339(3 @23> 7E9G693 D9@90J2$E9 (< 1,555 less uncollecti'le pledges of < ,155) 0"J9"(?D# 36,455 2,!55 "9( 2339(38 B"D93(D0@(9G 1BD"0(BD9 2"G 9KB07A9"(, (<215,555 net of 2ccumulated Gepreciation of <165,555) 55,555 (?(2E "9( 2339(3 (?(2E E02$0E0(093 2"G (?(2E 2339(3 <34 ,255 "9( 2339(3 <34 ,255 3!5,6!5 (9A7?D2D0E# D93(D0@(9G 25 ,5!5 76,655 < 126,555 E02$0E0(093 2"G "9( 2339(3 2@@?B"(3 72#2$E9 < 13,525 @>0EGD9"3 @?B"39E0"6 @9"(9D 3(2(9A9"( ?1 10"2"@02E 7?30(0?"

0"J93(A9"(3 (at fair %alue) 17!,555

79DA2"9"(E# D93(D0@(9G 155,555

13-2.

Chapter 13 - Accounting for Not-for-Profit Organizations

C/0 131 S'+u!&'(s1 13-12 "C'(!34$

@>0EGD9"3 @?B"39E0"6 @9"(9D 3(2(9A9"( ?1 1B"@(0?"2E 9H79"393 #92D 9"G9G FB"9 35, 251 b.

7D?6D2A 39DJ0@93
@ounseling 3er%ices 3alaries 2nd 1ringes ?ccupanc& 2nd Btilit& 3upplies 7rinting 2nd 7u'lishing (elephone 2nd 7ostage Bnrealized Eoss Gepreciation (?(2E 9H79"393 7rofessional (raining @ommunit& 3er%ices (?(2E

3B77?D(0"6 39DJ0@93
Agmt M 6eneral 1undDaising (?(2E

2EE 39DJ0@93
(?(2E

<11 ,56 15,365 2,776 1,676 1, 55 5 ,255 <134,476

< 2,461 5,765 1,5 1 624 525 5 ,255 <55,116

<2!,6 1 3,! 5 64 14 355 5 ,255 <3!,1

<1!6,166 2 ,465 ,511 2,72 2,275 5 12,655 <233,236

<71,653 4,655 1,735 1,5 7 !75 2,555 ,255 <41,565

<2!,6 1 3,! 5 64 14 355 5 ,255 <3!,1

<155,2 13, 5 2, 24 1, 66 1,225 2,555 !, 55 <124,25

<2!6, 15 3!, 55 6,4 5 ,145 3,555 2,555 21,555 <362, 5

13-2/

Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions 13-10, ;ContAd<

c. @>0EGD9"3 @?B"39E0"6 @9"(9D 3(2(9A9"( ?1 2@(0J0(093 #92D 9"G9G FB"9 35, 251 Bnrestricted D9J9"B93, 620"3, M ?(>9D 3B77?D(8 @?"(D0$B(0?"3 0"J93(A9"( 0"@?A9 (9A7?D2D0E# D93(D0@(9G "9( 2339(3 D9E9239G 1D?A D93(D0@(0?"3 (?(2E D9J9"B93, 620"3 M ?(>9D 3B77?D( 9H79"393 2"G E?33938 7D?6D2A 39DJ0@938 @?B"39E0"6 39DJ0@93 7D?19330?"2E (D20"0"6 @?AAB"0(# 39DJ0@9 (?(2E 7D?6D2A 9H79"393 3B77?D( 9H79"3938 A6A( M 69"9D2E 1B"G-D2030"6 (?(2E 3B77?D( 9H79"393 (?(2E 9H79"393 M E?3393 @>2"69 0" "9( 2339(3 "9( 2339(3, FBE# 1, 2513 "9( 2339(3, FB"9 35, 251 (emporaril& Destricted 7ermanentl& Destricted (otal

<33!,!25 4,255

< !,155

<3!6,425 4,255

22,555 375,525

(22,555) 26,155

5 346,125

134,476 55,116 3!,1 233,236 41,565 3!,1 124,25 362, 5 7,5!5 146,555 <25 ,5!5

_ _____

_______

134,476 55,116 3!,1 233,236 41,565 3!,1

______ 5 26,155 55,555 <76,655

__ ____ 5 5 155,555 <155,555

124,25 362, 5 33,6!5 3 7,555 <3!5,6!5

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Chapter 13 - Accounting for Not-for-Profit Organizations

Ch4 13, *o#utions 13-10 ;ContAd<

d. @>0EGD9"3 @?B"39E0"6 @9"(9D 3(2(9A9"( ?1 @23> 1E?;3 #92D 9"G9G FB"9 35, 251 @23> 1E?;3 1D?A ?79D2(0"6 2@(0J0(0938 @23> D9@90J9G 1D?A @?"(D0$B(?D3 @23> D9@90J9G 23 0"J93(A9"( 0"@?A9 @23> 720G (? 9A7E?#993 @23> 720G 1?D ?79D2(0"6 9H79"393 "9( @23> 7D?J0G9G $# ?79D2(0"6 2@(0J0(093 @23> 1E?;3 1D?A 0"J93(0"6 2@(0J0(0938 7BD@>239 ?1 1BD"0(BD9 2"G 9KB07A9"( @23> 1E?;3 1D?A 10"2"@0"6 2@(0J0(0938 7D?@99G3 1D?A @?"(D0$B(0?"3 D93(D0@(9G 1?D8 0"J93(A9"( 0" @270(2E 2339(3 "9( 0"@D9239 0" @23> @23>, FBE# 1, 2513 @23>, FB"9 35, 251 !,155 (26,!1 ) 153,31 < 126,555 (22,555) < 315,!55 4,255 (2!6, 15) (!6,55 ) (52,41 )

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13-31