Financial Statement Presentation By Not-For-Profit Organizations
ASNPO 4400
Financial Statement Presentation By Not-For-Profit Organizations
Definition
- Fund accounting
- Fund accounting is when a NPO establishes a fund, whereby each fund has a collection of assets, liabilities, net assets, revenues, and expenses that self-balance
- For example, a separate funds may be set up for different activities (i.e. fundraising, food bank, homeless shelter, etc.)
- Fund accounting is optional
Financial Statements
- A not-for-profit organization include the following financial statements
- a statement of financial position
- a statement of operations
- a statement of changes in net assets; and
- a statement of cash flows
Fund Accounting
- An NPO that uses fund accounting should provide a brief description of the purpose of each fund
- Financial statements that are reported using fund accounting may follow a multi-column format
- Example
Fund #1 Fund #2 Total Assets Liabilities Net Assets
- Interfund transfers should be presented in the statement of changes in net assets and disclose the amount and purpose of the Interfund transfers
- Inter-fund loans outstanding are disclosed