Mind the GAAP: NFP Edition ON DEMAND

Overview

Phil Marciano, partner at Citrin Cooperman, outlines the most frequent financial statement pitfalls he encounters while reviewing not-for-profit organizations. He highlights improper classification of assets and lease items, mishandling of conditional versus unconditional contributions, board-designated versus donor-restricted net assets, errors in functional expense and cash-flow presentations, and overlooked non-cash gifts. Marciano stresses robust internal controls, staff training, and vigilant board oversight to avoid these GAAP violations.

Highlights

The most frequent financial statement pitfalls encountered while reviewing not-for-profit organizations.

Prerequisites

None.

Designed For

CPAs and accountants.

Objectives

Identify the relevant FASB Codification topics that govern not-for-profit reporting and the situations in which industry specific guidance overrides general GAAP. Distinguish conditional from unconditional contributions and indicate the correct balance sheet and revenue recognition treatment for each funding type. Recall the required presentation formats for the statement of activities, cash flow statement, and statement of functional expenses, and recognize the misclassifications that most often appear in practice. Select the proper classifications for cash equivalents, leases, board designated versus donor restricted net assets, and non-cash gifts, and estimate the internal control actions needed to prevent related reporting deficiencies.

Preparation

None.

Notice

None.