2. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
2Slide /
GROUND
RULES
Attendees are in listen-onlymode
This webinar is being recorded for
future on-demand playback
Your participation represents
acknowledgement that we are
recording
Tweet questions & comments to
@WelchLLP
PD credits will onlybe awarded to
those who watch the webinar live
7. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
7Slide /
• Current assets – cash/convertableto cash
within 12 months
• In order ofliquidity
• Investments – at cost or fair value
• A/R– Earned and legally owed to NPO
• Prepaids – futureexpenses already paid for
• Capital assets – historical cost amortized
over useful life
STATEMENT
OF FINANCIAL
POSITION
ASSETS
2017 2016
Current Assets
Cash 25,000 130,000
Investments 100,000 -
Accounts Receivable 14,000 5,000
Prepaid Expenses 2,500 2,300
141,500 137,300
Long-Term Assets
Capital Assets 49,000 27,000
$190,500 $164,300
8. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
8Slide /
• Current liabilities – obligations duewithin
12 months
• Accounts payable– dueto vendors,
employees,etc.
• Government remittances – Sales taxes,
payroll taxes,etc.
• Deferred revenue– incomethat is received
beforeearned
• Loan payable– current and longterm
portion
STATEMENT
OF FINANCIAL
POSITION
LIABILITIES
2017 2016
Current Liabilities
Accounts Payable 12,000 10,000
Government Remittances
Payable
1,500 1,200
Deferred Revenue 10,000 11,000
Current Portion ofLoan 5,000 -
28,500 22,200
Long-Term Liabilities
Loan Payable 19,000 -
$47,500 $22,200
9. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
9Slide /
• Availablefor futureuse
• Changein total balance– surplus/loss for
theyear
• Unrestricted – Can be spent with no
limitations
• Invested in Capital Assets – “equity”tied up
in capital assets,not liquid
• Internally restricted – Reserveset up by the
board for a specific purpose
STATEMENT
OF FINANCIAL
POSITION
NET ASSETS
2017 2016
Unrestricted Net Assets 68,000 65,100
Investment in Capital Assets 25,000 27,000
Internally Restricted -
Scholarships
50,000 50,000
$143,000 $142,100
10. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
10Slide /
• Summarizes revenueand expenses over a
period of time
• Revenue– all income earned in period,
includingnot yet received
• Expenses – all expenditures incurred in
period, includingnot yet paid
• Net revenue– surplus for period
STATEMENT
OF
OPERATIONS
2017 2016
Revenue
Conference 450,000 773,000
Grants 150,000 60,000
Membership Fees 65,000 64,000
Investment Income 100 -
665,100 897,000
Expenses
Salaries & Benefits 174,650 172,000
Interest 350 -
Conference 425,000 558,500
Rent 60,000 60,000
Amortization 3,000 2,000
Office Supplies 1,200 1,500
664,200 794,000
Net Revenue $900 $103,000
11. NPO GOVERNANCEBOOTCAMP
FINANCIAL REPORTINGBASICS
11Slide /
• Wheredid cash comefrom?
• Wheredid it go?
• Reconciles net revenueto changein cash
STATEMENT
OF cash
flow
2017 2016
Cash Provided by (Used in)
OPERATINGACTIVITIES
Net Revenue 900 103,000
Amortization 3,000 2,000
3,900 105,000
Change in level of:
Accounts Receivable (9,000) (1,000)
Prepaid Expenses (200) -
Accounts Payable 2,000 3,000
Gov Remittances Payable 300 200
Deferred Revenue (1,000) (6,450)
(4,000) 100,750
INVESTING ACTIVITIES
Purchaseof Captial Assets (25,000) (750)
Acquisition ofinvestments (100,000) -
(125,000) (750)
Continued on right side
2017 2016
FINANCIAL ACTIVITIES
Loan Advances,Net of
Repayments
24,000 -
24,000 -
INCREASE (DECREASE) IN
CASH
(105,000) 100,000
CASH at beginningofyear 130,000 30,000
CASH, at end of year $25,000 $130,000