Common Financial Reporting Deficiencies (Part 1)
EisnerAmper’s Phil Bergamo, Senior Manager, and Jessica Dima, Senior, recently presented a webinar titled “Common Financial Reporting Deficiencies for Not-for-Profit Organizations.” The objective was to identify common reporting deficiencies noted in the financial statements of not-for-profits and identify resources to help attendees stay up-to-date on accounting guidance and applications.
Some common errors identified in the Statement of Financial Position were as follows:
|Common Error||Proper Reporting|
|Restricted cash reported as unrestricted/available for current use.||Amounts that should be segregated as restricted cash:
|Recognition of conditional promise to give where the condition has not yet been met.||Conditional promises should only be recognized when the conditions of the promise to give have been satisfied.|
|Unrestricted, but board-designated amounts are reported as temporarily or permanently restricted.||All board designated amounts should be reported as unrestricted, even if functioning as a board designated endowment.|
The webinar also provided a number of resources to help not-for-profit auditors and accountants stay informed on accounting pronouncements and applications affecting not-for-profit accounting. A short list of the resources shared includes: