ACCT 420 Not-for-Profit Accounting Course GuideCourse Guide
This course presents the underlying framework and concepts of Governmental and Not-for-Profit Accounting in the context of how such accounting fits into the overall business environment of contemporary society. Governmental accounting is the basic means of recording and reporting financial information for State and Local governments. Additionally, students will learn the unique accounting and reporting requirements of not-for-profit organizations. Students will discover the uses and limitations of such financial statements and related information and apply analytical tools in making both business and financial decisions. Topics examined include those related to financial position, operating results, cash flows, and financial strength. Students will study the basic accounting systems and will be shown how the various accounting alternatives for recording financial transactions impact on the usefulness of the information provided for decision-making.
Assessable Course Objectives
The primary learning objectives for this course are students will demonstrate:
Syllabus Requirement for Life Long Learning
In order to support our students’ development into Life-Long Learners, students will be encouraged to join the appropriate professional organization. Each instructor should include in their syllabus a statement encouraging students to join the AICPA http://www.thiswaytocpa.com/aicpa-student-membership/ or the New York State Society of CPAs http://www.nysscpa.org/membership/app_form.htm
I. Financial Reporting: Governmental and Not-for-Profit Entities
A. Distinguish differences from for-profit entities
II. Principles of Accounting and Financial Reporting for State and Local Governments.
A. Explain the nature of the three major activity categories
III. Governmental Operating Statement Accounts; Budgetary Accounting
A. Explain how governmental activity operating revenues and expenses are classified and reported in the government-wide financial statements.
IV. Accounting for Governmental Operating Activities
A. Analyze typical operating transactions for governmental activities and prepare appropriate journal entries at both government-wide and fund levels
G. Complete the accounting cycle, including closing entries
V. Accounting for General Capital Assets and Capital Projects
A. Describe the nature and characteristics of general capital assets
1. Alternative treatement of project surpluses or deficits at completion
I. Explain the concepts and accounting procedures for special assessment Capital Projects
VI. Accounting for General Long-Term Liabilities and Debt Service
A. Explain what types of liabilities are classified as general long-term liabilities
1. the issuance and repayment general long-term liabilities
B. Prepare a schedule summarizing changes in general long-term liabilities
VII. Accounting for the Business-Type Activities of State and Local Governments
A. Distinguish between the purposes of internal service and enterprise funds
VIII. Accounting for Fiduciary Activities—Agency and Trust Funds
A. Explain the purpose of fiduciary funds and distinguish among agency funds and trust funds (private-purpose, investment, and pension)
1. A cash and investment pool(including an investment trust fund)
IX. Financial Reporting of State and Local Governments
A. Describe the financial reporting requirements of the GASB 34 reporting Model
X. Accounting for Not-for-Profit Organizations (NPOs)
A. Distinguish NPOs from entities in governmental and commercial sectors
1. Required financial statements
D. Describe optional fund accounting
XI. Accounting for Colleges and Universities
A. Distinguish between GAAP for public and private colleges and universities
1. Accounting for Assets, Liabilities, and Net Assets
D. Journalize transactions for private colleges and govt.
1. Performance measures
XII. Accounting for Health Care Organizations
A. Describe different organizational forms for health care service providers
1. Budgeting and costs
G. Explain financial and operational analysis of health care organizations
XIII. Auditing of Governmental and Not-for-Profit Organizations
A. Explain the essential characteristics of financial audits by independent CPAs
1. The objective(s) of financial audits
B. Explain what is meant by generally accepted government auditing standards
(GAGAS), the source of GAGAS, and why GAGAS are much broader than GAAS
C. Explain the types of audits performed under GAGAS, including
1. Financial audits
D. Explain the characteristics of a single audit, including:
1. The purpose
E. Describe the role of audit committee and implications of SOX.
Recommended Teaching Methodology
This course will be structured in such a way as to facilitate the use of different methods of instruction. Students are expected to take an active role in their learning experience and will be expected to have read the assigned material prior to class and to have prepared all written assignments. Classroom time will consist of one or all of the following: lecture, question and answer, group discussions and class exercises and problems. Work may be done individually or in small groups.
The readings will come from the required text. Lectures and discussions will enable the Professor and the students to expand on and clarify the material presented in the readings.
Recommended Assessment Measures
The assessment measures will be the projects assigned and the examinations given. Projects may include actually interviewing or visiting a business.
Use of Calculators/Electronic Devices
The Accounting Department policy regarding programmable calculators requires students in to bring a simple four-function calculator without memories to use on exams. This policy is in place in order to reduce the likelihood of cheating. All personal electronic devices (including cell phones) must be stored during class.
Statement of Expectations
This course is an elective major course. Students are expected to take an active role in their learning experience and will be expected to have read the assigned material prior to class and to have prepared any written assignments. Students should attend and actively participate in all classes.
Most of the learning will not take place in the classroom. Students should be informed that most learning occurs as they are doing the required work outside of class. This includes their reading, critically thinking, and applying the concepts to the real world on projects, problems and exercises. The amount that they learn and the level of skill that they develop will be directly proportional to the amount of effort they put forth in preparing for class.
The concept of academic integrity lies at the very heart of any college. This is particularly true of Siena with its strong Franciscan tradition and its dedication to fostering sound moral growth. In such an environment, academic dishonesty cannot be tolerated. Work that students submit for this course must be entirely done on their own. Although students are encouraged to study together, they are required to produce their own solutions to all work they submit (including, obviously, exams and projects). In any situation in which a student is unsure what constitutes academic dishonesty, it is the student’s responsibility to raise the question with his or her instructor. It is also the student’s responsibility to be familiar with the student guidelines on academic dishonesty, “ Academic Integrity and the Siena Student”
This course assumes successful completion of Intermediate Accounting and a working knowledge of micro computers, including WORD and EXCEL. Additionally students must be comfortable with mathematical tools necessary for business. Normally this knowledge would be obtained by completing QBUS 100 -Mathematics for Decision Making I. The student must be able to communicate effectively and be able to work in groups.
Institutional Mechanism for Providing Feedback for Continuous Quality Improvement
The Accounting department will annually review assessment results from the common questions on the final examination for this course and other assessment projects that might be undertaken. Specifically, assessment results of the learning outcome areas will be analyzed to determine the level of success in achieving these learning outcomes. Any deficiencies in achieving learning outcomes will be addressed and appropriate changes designed to improve the success in achieving these learning outcomes will be implemented.
There also will be a periodic review of the course curriculum to accommodate changes in accounting practice or classroom experience.