1. Government and Non-Profit Accounting

2. WEEK FIVE
Accounting for Not-for-Profit Colleges, Universities, and Health Care Organizations

3. Learning Objectives After Week 5, you should be able to:
Describe financial reporting for public and private colleges and universities.
Journalize transactions and prepare the basic financial statements for public and private colleges and universities.
Describe financial reporting for not-for-profit and governmental health care organizations.
Journalize transactions and prepare the basic financial statements for not-for-profit and governmental health care organizations.

4. Overview of Public Colleges and Universities
Two types
Public
GASB Reporting Standards
Main sources of revenues are state appropriations and grants
Private
FASB Reporting Standards
Main sources of revenues are student tuition, investments and fees.

5. For Public Colleges and Universities
Reporting as a special purpose government engaged in business-type activities only under GASB Statement Nos. 34 and 35 .
Statement of Net Position, classifying net assets into:
Unrestricted
Restricted
Net Investment in Capital Assets (net of related debt)
Statement of Revenues, Expenses, and Changes in Net Position
Statement of Cash Flows

6. For Private Colleges and Universities
Reporting under SFAS Nos. 116 and 117
Statement of Financial Position classifying net assets into:
unrestricted
temporarily restricted
permanently restricted
Statement of Activities
Statement of Cash Flows

7. Health Care Organizations
For Profit: Investor-Owned
Not-for-Profit:
Business-Oriented Organizations
Governmental Health Care Organizations
FASB is the sole authoritative source of GAAP for nongovernmental Not-for-Profit and for-profit health care entities.
GASB is the authoritative source of GAAP for entities engaged in either governmental or business-type activities or both.

8. Financial Statements for Health Care Providers
FASB
A balance sheet or statement of financial position
A statement of operations
A statement of cash flows
A statement of changes in net assets
GASB
A statement of net position
A statement of revenues, expenses, and changes in net position

9. Questions?