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Preparing Nonprofit Financial Statements: Avoiding Common Errors

Classifying Restricted Assets, Categorizing Functional Expenses, Reporting Unique Disclosures

Recording of a 110-minute CPE video webinar with Q&A

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Conducted on Tuesday, March 28, 2023

Recorded event now available

or call 1-800-926-7926

This webinar will discuss preparing financial statements for nonprofit organizations. This discussion will cover the unique aspects of these reports, identify common reporting missteps, and provide advice for efficiently assimilating these statements for auditors and accountants of these organizations.

Description

Nonprofit organizations have distinctive reporting requirements. The titles, disclosures, and financial statements are unique to these organizations. The Statement of Financial Position reports not only net assets but must disclose whether the assets are with or without donor restriction, and to the extent with donor restriction, whether these restrictions are permanent or temporary. Most often, these determinations are not readily apparent. Further, the Statement of Activities, similar to an Income Statement, reports revenues, expenses, and changes in assets. However, nonprofit organizations must report this information separately for each activity and report revenue as with or without donor restriction.

On top of increased financial statement reporting requirements, these nonprofit organizations must include additional disclosures in their financial statements. Accounting Standards Update (“ASU”) 2020-07 requires disclosure of nonfinancial contributions, better known as in-kind contributions, and the nonprofit's accounting policies for contributions. These additional reporting requirements can burden organizations operating for charitable purposes and auditors and accountants required to comply with these voluminous guidelines. Accountants working with nonprofit organizations must understand reporting requirements and the role and responsibilities of the auditors, management, and the board of directors in accumulating and divulging this information.

Listen as our panel of nonprofit experts reviews the unique components of nonprofit financial reporting for auditors, accountants, and managing members of these organizations.

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Outline

  1. Overview: nonprofit financial reporting
  2. Preparing financial statements
    1. Statement of Financial Position
    2. Statement of Activities
    3. Statement of Functional Expenses
    4. Statement of Cash Flows
  3. FASB prescribed formats
  4. Disclosures
  5. Use of financial statements
    1. Board's roll and responsibility of management
    2. Auditors' reports and responsibility

Benefits

The panel will cover these and other critical issues:

  • Types of auditors’ reports issued by nonprofit organizations
  • Footnotes required for nonprofit organizations
  • Identifying and avoiding common financial statement reporting errors made by nonprofit organizations
  • Complying with unique financial reporting requirements for nonprofits
  • The role and responsibilities of the board of directors and management of nonprofit organizations

Faculty

Greear, Tamara
Tamara Greear, CPA, MSA
Partner
Rodefer Moss & Co.

Ms. Greear serves as a Partner at the firm’s Norton, Virginia office. She is registered and licensed to practice...  |  Read More

Guerra, Amy
Amy Guerra, CPA
Professional Practice Director - Nonprofit and Healthcare Industries
BDO USA

Ms. Guerra has more than 15 years of providing assurance services to nonprofit and healthcare entities. She has...  |  Read More

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