Non-profit Financial Management College of Public and Community Service University of Massachusetts at Boston ©2010 William Holmes 1

GAAP—Generally Accepted Accounting Principles; IFRS, International Financial Reporting Standards; IASB, International Accounting Standards Board US GAAP—FASB, Financial Accounting and Standards Board (general); GASB, Governmental Accounting Standards Board (state and local government); FASAB, Federal Accounting Standards Advisory Board 2

 Budgets  Profit-Loss Statement— Income Statement, Activity Statement  Balance Sheet—Statement of Financial Position  Cash Flow Statement 3

 Spending plan for specified period  Broken down by functional categories  Consider direct and indirect expenses  Uses cost or accrual accounting 4

 Compares income versus expenses  Compares for a period of time  Includes functional categories of income and expense  Indicates financial health of organization 5

 Summarizes status of organization at a point in time  Compares assets with liabilities  Accounts for how assets are balanced with liabilities  Identifies issues regarding assets or liabilities 6

 Describes handling of income and expenses  Determines net result of cash flow  Identifies issues in cash management  Identifies potential future financial problems 7