When auditing an organization, what we often find is that clients are not tracking their restricted net assets. Or if they are tracking it, it is not correct. Some common errors we find include: Board designated amounts are classified as restricted – Board designated amounts, including board designated endowments, should be categorized as unrestricted as …
Here are twelve points on how to avoid endowment confusion. These points are in no particular order. (1) UPMIFA is a uniform law. Each state has adopted their own version of this law (except for Pennsylvania). See upmifa.org for more information. (2) If a permanent endowment goes underwater, the negative amount in unrestricted net assets is considered …
The Governmental Accounting Standards Board has recently issued two GASB Statements that will affect the way a governmental entity presents its financial statements going forward. Those GASB statements are GASBS 63 and GASBS 65. We have broken this blog into two blogs. Part I will discuss the ramifications of GASBS 63 and Part II will …