Reference no: EM133148985

Assignment: Financial Reporting Review of a Not-for-Profit Organization

Overview

Not-for-Profit (NFP) organizations are different from governmental entities in that they lack the authority of law to generate revenues and have greater flexibility in administering their budgets. Select one NFP organization in an area of interest to you and review their financial statements and audit report. The NFP organization selected must have their financial statements and audit report publicly available on their website.Instructions

Determine if the NFP's statements conform to the FASB guidance, explaining how the selected NFP uses the required fund categories and recommending at least two areas of potential interest to stakeholders concerning the NFP's revenue and expense status.

Analyze the selected NFP's financial statements to determine if the statements conform to the Financial Accounting Standards Board (FASB) guidance from Not-for-Profits. (Note: You have to click "Accept" to see the guidance.)

As part of the analysis, explain how the selected NFP organization uses the required fund categories and recommend at least two areas of potential interest to stakeholders concerning the NFP's revenue and expense status.

Explain the format utilized to prepare the Statement of Cash Flows, pointing out at least two areas of emphasis that differ from GAAP accounting format.

The financial statements of NFP organizations include a Statement of Cash Flows.

Analyze this Statement of Cash Flows in order to explain the format utilized.

Point out any unique areas of emphasis that differ from GAAP accounting format.

Compare the organization's reporting of pledges and contributions to its reporting of exchange transactions, discussing at least three of the funds used.

NFP organizations report pledges and contributions in addition to reporting exchange transactions.

Assess the fiscal condition of the selected NFP organization, interpreting financial indicators specific to NFPs and financial ratios widely accepted as being indicative of fiscal health.