Financial Reporting Review Of A Not-For-Profit Organization

Guide for Week 9 Assignment 2

Points: 120

Criteria

What this is asking you to provide:

1. Analyze the selected not-for-profit’s financial statements to determine if the statements conform to Financial Accounting Standards Board (FASB) guidance in Statement No. 117, “Financial Statements of Not-for-Profit Organizations” (FASB ASC 958-205-45). Explain the selected organization’s use of the three fund categories. Recommend at least two areas of potential interest to the stakeholder concerning the status of revenue and expenses.

Weight: 25%

1) In order to analyze the financial statements of your selected not-for-profit to see if they conform to FASB Statement No. 117 or ASU 2016-14, you have to state what FASB Statement No. 117 and ASU 2016-14 requires of a not-for-profit in their financial statements. Next, identify in your chosen not-for-profit these elements. Be specific.

2) Explain the three fund categories that your chosen not-for-profit uses. What are they? What information are they used to provide the financial statement reader?

3) Pick two areas of the revenues and expenses from the financial statements of your chosen not-for-profit and state why a stakeholder might be interested in these.

2. Analyze the organization’s statement of cash flows. Explain the format that the organization utilizes, including any unique areas of emphasis that differ from the GAAP accounting format. Weight: 20%

1) State the format (method used to prepare) the Statement of Cash Flows.

2) Explain what is the statement covers . Be specific as to the sources and uses of cash.

3) Point out areas where the Statement of Cash Flows for your not-for-profit differs from GAAP .

3. Compare the organization’s reporting of pledges and contributions with its reporting of exchange transactions. Discuss the funds that are utilized.

Weight: 20%

1) State how your chosen organization reports pledges and contributions.

2) State how your chosen organization reports exchange transactions.

3) What is different between the two ? Be sure to include in the discussion the funds utilized for both.

4. Assess the fiscal condition of the selected organization utilizing and interpreting financial indicators, using financial ratios that are widely accepted as being indicative of fiscal health. This assessment should also be expanded to include fund-raising analysis, program review, contributions, and grant analysis and revenue analysis.

Weight: 25%

1) A list of financial ratios that are widely accepted is located on pages 561-562 of your textbook. These should be presented for your chosen not-for-profit organization. If the financial statements do not present them in a statistical section, you need to compute them for your paper .

2) Be sure to state what each is telling you about the fiscal condition of your chosen not-for-profit.

3) Page 562 contains the other four ratios that you are required to present for your chosen not-for-profit. (fund-raising, program review, contributions, and grant analysis). After you present the ratio, state what that ratio tells you about your chosen not for profit.

5. Clarity, writing mechanics, and formatting requirements.

Weight: 10%

1) Proof-read your work.

2) Run the paper through Grammarly.

3) Be sure to include your references and citations .