Common Financial Reporting Deficiencies (Part 1)
- Published
- Feb 9, 2016
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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:
- AICPA’s Not-for-Profit Section
- Action Alert Emails from the Financial Accounting Standards Board
- FASB’s Twitter feed
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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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