ACC460 -Government and Non-Profit Accounting
WEEK 1
Individual Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper
Prepare a 350- to 700-word paper comparing and contrasting GASB and FASB accounting.
Explain the objectives of the two standards boards and how they are similar and different.
Describe how the modified accrual basis of accounting differs from full accrual accounting.
Format your paper consistent with APA guidelines.
Week 1 – Discussion Questions
DQ 1 Log into http://www.charitynavigator.org/. Choose a good charity and a bad charity and explain why you feel they should labeled good or bad.
DQ 2 What is fund accounting? How does it compare to proprietary accounting? Why is fund accounting necessary? What are the major fund types?
DQ 3 What are some examples of government and not-for-profit organizations? How do businesses measure success? How do government organizations measure success?
DQ 4 What is the purpose of CAFR? What are the components of CAFR? Why is the Federal Government not subject to GASB 34? How do government-wide financial statements add information not available in fund financial statements?
WEEK 2
Individual Ch. 1, 2, & 3 Textbook Exercises
Resources: Ch. 1, 2, & 3 of Government and Not-for-Profit Accounting
Prepare written answers to the following assignments from Government and Not-for-Profit Accounting:
Ch. 1: Exercise 1-1, Questions 1, 3, 4, 5, 7, & 8
Ch. 2: Question for Review and Discussion 12. In addition to answering question 12, provide a response in 150-350 words differentiating between a budget and a Comprehensive Annual Financial Report (CAFR).
Ch. 3: Exercise 3-2, Questions 1, 2, 3, 6, 8, & 9
Learning Team CAFR Budget Analysis
Resources: Each team members CAFR list from Week One
Select one team members CAFR to be the basis for this and subsequent Learning Team assignments, using the CAFRs chosen for the CAFR list activity in Week One.
Locate and review a copy of the budget accompanying your selected CAFR.
Prepare a 700- to 1,050-word overview of the government that filed your selected CAFR.
Include the following information in your overview:
Population
Governmental structure
Size of budget and its interrelationship with the CAFR
Major industries located in the entity
Other pertinent demographic information
Format your paper consistent with APA guidelines.
Week 2 – Discussion Questions
DQ 1 What is meant by an in-substance defeasance, and how can a government use it to lower its interest costs? How must it recognize a gain or loss on defeasance if it accounts for the debt in a proprietary fund?How do the GASB standards pertaining to in-substance defeasances differ from those of the FASB?
DQ 2 What is an encumbrance? How does an encumbrance affect expenses and expenditures? What is the impact of encumbrance accounting on a governmental budget? Explain.
DQ3What are the basic principles of fund accounting? When do governmental entities recognize revenue? Why is timing important in recognizing revenue?
DQ4What is the purpose of the capital projects fund? What is the purpose of the debt service fund? What is inter-period equity? How does inter-period equity affect capital project and debt services funds?
Week 3
Individual Ch. 2, 4, 5, & 6 Textbook Exercises
Resources: Ch. 2, 4, 5, & 6 of Government and Not-for-Profit Accounting
Prepare written answers to the following assignments from Government and Not-for-Profit Accounting:
Ch. 2: Exercise 2-1, Questions 1 through 10
Ch. 4: Exercise 4-1, Questions 1 through 10, and Exercise 4-7, Question 1 & 2
Ch. 5: Questions for Review and Discussion 1 & 2
In your answers to the Ch. 5 questions, address how encumbrances affect the expenses and expenditures.
Ch. 6: Questions for Review and Discussion 1 & 6
Learning Team Ch. 4 & 6 Textbook Problems
Resources: Ch. 4 & 6 of Government and Not-for-Profit Accounting
Prepare written answers to the following problems from Government and Not-for-Profit Accounting:
Ch. 4: Problem 4-16 The distinction between exchange and nonexchange revenues is not always obvious.
Ch. 6: Continuing Problems 14, found at the beginning of the Problems section at the end of the chapter. For this assignment, use the CAFR your team selected in Week Two.
Week 3 – Discussion Questions
DQ1 What is the revenue recognition criteria used in government entities? What are some examples of government sources of revenue? How are these sources accounted for?
DQ2 What is an interfund transfer? Why would government entity transfer money from one fund to another? How are interfund transfers reported on a financial report?
DQ 3 How can a government entity prepare government-wide statements using the fund statements? What is a governmental reporting entity?
DQ 4 You are the sole contributor to a philanthropic foundation. You must specify whether investment gains should be expendable or nonexpendable. Present key arguments in favor and against permitting the gains to be expendable.
Week 4
Individual Ch. 9 & 10 Textbook Exercises
Resources: Ch. 9 & 10 of Government and Not-for-Profit Accounting
Prepare written answers to the following assignments from Government and Not-for-Profit Accounting:
Ch. 9: Exercise 9-3, Part a
Ch. 10: Questions for Review and Discussion 1, 5, & 15
Learning Team Ch. 5 & 10 Textbook Problems
Resources: Ch. 5 & 10 of Government and Not-for-Profit Accounting
Prepare written answers to the following problems from Government and Not-for-Profit Accounting:
Ch. 5: Problem 5-11 Nonexchange expenditures are the mirror image of nonexchange revenues.
Ch. 10: Problem 10-7, Parts 1, 2, & 3 The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition.
Week 4 – Discussion Questions
DQ 1
1. What financial statements are required of not-for-profit organizations?
2. How are they different or comparable to those provided by organizations that operate for profit?
3. How does the retained earnings section of for-profit organizations differ from that of the net assets section of not-for-profits?
DQ 2
1. What are the three classifications of net assets established by FASB Statement 117?
2. How are these net assets affected by the existence or absence of donor-imposed restrictions?
3. How are releases of these net assets accomplished?
DQ 3
1. What constitutes a pledge or contribution?
2. When does a not-for-profit organization recognize pledge revenue and contribution revenue?
3. How do contributions differ from exchanges?
DQ 4
1. In what significant way do not-for-profits account for investments differently from businesses?
2. How are investments reflected in the statements of not-for-profits?
3. What are the disclosure requirements for not-for-profits as related to investments?
Week 5
Individual Ch. 12 Textbook Exercises
Resources: Ch. 12 of Government and Not-for-Profit Accounting
Prepare written answers to the following assignment from Government and Not-for-Profit Accounting:
Ch. 12: Questions for Review and Discussion 1 & 2
Individual SFAS 116 and 117 Executive Summary
Resources: Statements of Financial Accounting Standards (SFAS) 116 and 117; sample Executive Summary
Write a one-page Executive Summary assessing the requirements of SFAS 116 and 117 and its effect on the financial statements.
Refer to the sample Executive Summary located on the student website under the Assessment section of Week Five for instructions on how to format your assignment.
Format your paper consistent with APA guidelines.
Individual Accountability in Reporting Memo
Write a one-page, double-spaced memo to a nonfinancial audience explaining how increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and governmental entities.
Cite all of your sources
Learning Team Ch. 9 & 11 Textbook Problems
Resources: Ch. 9 & 11 of Government and Not-for-Profit Accounting
Prepare written answers to the following problems from Government and Not-for-Profit Accounting:
Ch. 9: Continuing Problems 16, found at the beginning of the Problems section at the end of the chapter. For this assignment, use the CAFR your team selected in Week Two.
Ch. 11: Continuing Problems 16, found at the beginning of the Problems section at the end of the chapter. For this assignment, use the CAFR your team selected in Week Two.
Week 5 – Discussion Questions
DQ 1 What is a performance audit? In what significant ways do performance audits differ from financial audits?
DQ 2 How do audits of governmental agencies differ from those of not-for-profit entities? How are these audits different from those of organizations that operate for profit? Who are the stakeholders for the various audits?
DQ 3 What is the Single Audit Act? How has this act influenced auditing of governmental agencies? What types of reports and opinions do the auditors provide?
DQ 4 How has the Sarbanes-Oxley Bill influenced reporting by governmental agencies and not-for-profit organizations?Does the Public Company Accounting Oversight Board have authority to establish auditing standards for not-for-profits?What specific steps might governmental agencies or not-for-profits take to comply with the requirements of the Sarbanes-Oxley Bill?