ACC 821 Lecture Notes - Lecture 12: Deferral, Accrual, Fund Accounting
19 Apr 2016
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Document Summary
What are users" needs: cra- must meet certain criteria in order to maintain charitable and nfp status, donors, advocates, clients- source and use of funds, assess governance structure, otherwise must pay taxes assess meet its objective. Where is management bias: use of funds- according to various restrictions, laws, etc (do not want to lose status, source of funding, reputation, present well- managed organization, source of funds- donations (overstate in-kind?) What does an audit add: credibility of f/s, review of internal controls. What are key sources of revenue: donation, grants, gifts and bequests, service fees, investment income. What are key expenses: direct program costs, fundraising costs, administration costs, capital expenditures and maintenance. Risk assessment: engagement any special uses of f/s, concern about users, risk of f/s misstatement. Strategy cost cutting, expanding alternative programs, investment strategies, fundraising strategies. Accounting issues: donated materials and services, contributions, fund accounting. Separate group accounts; is used to record all transactions: deferral method.
