DI
Comment to FG
Based on the recipients of information the criteria for accounting principles and financial statements vary. A government agency is required to report its activities to the government, while a non-profit organization is required to report to its members, donors and funding agencies. In the US, GAAP governs all non-profit organizations and government agencies. The government meets the GASB requirements in this context and non-profit organizations obey the FASB provisions.
The budget is a very important element under the GASB requirements for government entities. In 1999 the GASB issued a statement allowing these institutions to present a comparative financial statement showing the entity's performance in relation to the approved budgets. "GASB Statement No. 34 will henceforth allow governments to choose to present mandated budgetary comparisons either as part of the basic audited financial statements." (Government Finance Officers Association, 2000)
For its part, the budget of a non-profit organization is based on a activities plan for which donors and members make their contributions. However, the dilemma for nonprofit organizations' budgets is that donors have the right to allocate their funds according to their interests. According to (Klotz, 2020) "… it's all about being clear what you are asking for and being clear what the donor intends." I think this is an important feature that contrasts a budget of a non-profit entity versus a budget of government entity. The latter has the funds in advance and a board that theoretically represents the taxpayers approves this budget.
References:
Comment to SJ
In order for a government to function "Congress must create and pass numerous funding bills each fiscal year to keep the federal government open." (USA GOV, Budget of the US Government, 2010). Governmental budgets that are passed each fiscal year begin October 1st and end on the last day of September before starting the new fiscal year. The government makes money by collecting taxes and burrowing capital in return for saving bonds. When the government burrows they must pay the interest on the debt which is normally less then 10% of the budget. Majority of the budget goes towards "Funding for Social Security, Medicare, veterans benefits, and other spending required by law. This is called mandatory spending and typically uses over half of all funding." (USA GOV, Budget of the US Government, 2010). When creating the budget plan for the government it is very important to consider the mandatory spending and the discretionary spending which is a third of the budget. If the bill created by senate and house is not signed by the president to make it a law then national parks may shut down, taxpayers will not receive a tax refund, and grants will be suspended.
Not for profit business budgets are created completely different from governmental budgets. For example, the staff in the not for profit organization is responsible for creating the ...
Web & Social Media Analytics Previous Year Question Paper.pdf
DI Comment to FGBased on the recipients of information the cri.docx
1. DI
Comment to FG
Based on the recipients of information the criteria for
accounting principles and financial statements vary. A
government agency is required to report its activities to the
government, while a non-profit organization is required to
report to its members, donors and funding agencies. In the US,
GAAP governs all non-profit organizations and government
agencies. The government meets the GASB requirements in this
context and non-profit organizations obey the FASB provisions.
The budget is a very important element under the GASB
requirements for government entities. In 1999 the GASB issued
a statement allowing these institutions to present a comparative
financial statement showing the entity's performance in relation
to the approved budgets. "GASB Statement No. 34 will
henceforth allow governments to choose to present mandated
budgetary comparisons either as part of the basic audited
financial statements." (Government Finance Officers
Association, 2000)
For its part, the budget of a non-profit organization is based on
a activities plan for which donors and members make their
contributions. However, the dilemma for nonprofit
organizations' budgets is that donors have the right to allocate
their funds according to their interests. According to (Klotz,
2020) "… it's all about being clear what you are asking for and
being clear what the donor intends." I think this is an important
feature that contrasts a budget of a non-profit entity versus a
budget of government entity. The latter has the funds in advance
and a board that theoretically represents the taxpayers approves
this budget.
References:
Comment to SJ
In order for a government to function "Congress must create and
pass numerous funding bills each fiscal year to keep the federal
2. government open." (USA GOV, Budget of the US Government,
2010). Governmental budgets that are passed each fiscal
year begin October 1st and end on the last day of September
before starting the new fiscal year. The government makes
money by collecting taxes and burrowing capital in return for
saving bonds. When the government burrows they must pay the
interest on the debt which is normally less then 10% of the
budget. Majority of the budget goes towards "Funding for
Social Security, Medicare, veterans benefits, and other spending
required by law. This is called mandatory spending and
typically uses over half of all funding." (USA GOV, Budget of
the US Government, 2010). When creating the budget plan for
the government it is very important to consider the mandatory
spending and the discretionary spending which is a third of the
budget. If the bill created by senate and house is not signed by
the president to make it a law then national parks may shut
down, taxpayers will not receive a tax refund, and grants will be
suspended.
Not for profit business budgets are created completely different
from governmental budgets. For example, the staff in the not for
profit organization is responsible for creating the budget. After
a draft is prepared, executive committees and finance
committees "often review the proposed budget and the full
board usually adopts the budget at a full board meeting." (
National Council of Nonprofits, Budgeting For Nonprofits). Not
for profit budgets are not in written in stone, the budget is like
an Accounting Standard Code. For example the budget is there
to provide guidance to organizations financial decisions just
like Accounting Standard Codes. The reason for not
writting budgets in stone is because operational activity may not
not perform how the budget plan predicted. Therefore
adjustments are made when evaluating the
organization's financial stand point same way Accounting
Standard updates provide updates to its guidelines. The National
Council of Nonprofits state "A budget is a guide that can help a
nonprofit plan for the future as well as assess its current
3. financial health. It is quite common to periodically review the
budget as well as compare it to the actual cash flow and
expenses, to determine whether they are playing out as expected
during the course of the year. It may be necessary to amend the
budget during the year." (National Council of Nonprofits,
Budgeting For Nonprofits).
D2
Comment to FG
The Statement 92. Omnibus 2020, in which I will develop my
research, states some requirements for institutions within scope
of GASB provisions. The specific topics addresses in this
statement are followings: “leases, intra-entity transfers of
assets, postemployment benefits, government acquisitions, risk
financing and insurance-related activities of public entity risk
pools, fair value measurements, and derivative instruments.”
(GASB, 2020) In this sense, there are several prior statements
that are being amended.
For example, in the Statement 48 as amended, the intra-
entity transfer of assets between a governmental employer and
benefit pension plan within the same financial reporting entity
have to adjust any difference between the amount paid by the
pension plan and the amount transferred as per books. These
differences should be reported as employer contribution to
pension plan.
According to provisions of Statement 69, in acquisitions
carry out by a governmental entity, it has to measure the
liabilities and assets (if any) related to acquired entity’s asset
retirement obligations, using the accounting and financial
requirements of Statement 83 (if applicable), which rules the
standards of accounting and reporting for certain Asset
Retirement Obligations (ARO). An ARO is defined by (GASB,
2016) as “a legally enforceable liability associated with the
retirement of a tangible capital asset (that is, the tangible
capital asset is permanently removed from service).”
Comment to SJ
4. My topic is on the amendments pertaining to Internal Revenue
Code 457. The approval of these amendments may be delayed
due to the virus that is spreading. Comments on this matter was
to be submitted by April 10th and "Board has not scheduled a
public hearing on these issues addressed in this Exposure
Draft." ( GASB, Internal Revenue Code 457, 2020). The
purpose behind the revisions to Internal Revenue Code 457 is
to "increase consistency and comparability related to the
reporting of fiduciary component units... to mitigate costs
associated with reporting certain defined contribution pension
plans... to enhance the relevance, consistency, and
comparability of accounting and financial reporting for Internal
Revenue Code Section 457 deferred compensation plans
(Section 457 plans) that meet the definition of a pension plan."
(GASB, Internal Revenue Code 457, 2020). The anticipated
effective date for the exposure draft is June 15, 2021. The
changes in this proposed statement would improve the
usefulness and relevancy of the information provided to users .
Also determine if the governing board needs to play a bigger
role in determining component and pension plans due accuracy
of financial reporting