Common Financial Reporting Deficiencies (Part 1)
- Feb 9, 2016
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:
|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:
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Brian C. Collins
Brian Collins is an Audit Senior Manager with over 15 years of public accounting experience. He performs outsourced accounting services, audit, review, compilation, and tax services for a wide range of clients in various industries, including not-for-profits.
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