Escolar Documentos
Profissional Documentos
Cultura Documentos
Non-Profit Organizations
Table of Contents
Page
Part 1 1 hour (1 2 PM) Basic Accounting - Optional
1.
Cash Accounting and the Bank Reconciliation
2.
Accrual Accounting Payables and Receivables
3.
Capital Assets and Inventory
4.
Accounting for Revenues an Overview
5.
Simply Accounting and Quickbooks Demonstration
6.
Working Papers and Adjusting Entries
3
4
13
15
17
18
Part 2
7.
8.
9.
10.
11.
12.
32
37
46
38
53
62
Part 3
13.
14.
15.
16.
17.
18.
19.
63
67
69
75
80
84
90
Date
Item
Bank
Debit
Credit
Transfer
to/from
Chequing
Control
total
1000.00
1000.00
200.00
200
0.00
200.00
200.00
0.00
800.00
800.00
Description
Balance Forward
Transfer (from savings)
Donations
Cheque 1
toy purchase
Cheque 2
toy purchase
Cheque 3
delivery
Cheque 4
photocopies
Donations
Bank
Debit
Bank
Credit
Credit
Debit
Cr
Dr
500.00
200.00
1000.00
Bank statement
Disbursements
Donations
Cr
Office
Dr
Toy
Purchases
Dr
Delivery
Dr
200.00
1000.00
650.00
345.00
122.00
65.00
650.00
345.00
122.00
65.00
500.00
500.00
1182.00 2200.00
200.00 1500.00
1018.00
outstanding cheques
cheque 2
Receipts
Transfer
from
Savings
Cr
345.00
1363.00
65.00
995.00
122.00
Control
total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Toy Club
Statement of Financial Position
Cash Basis
January 31
Assets
Cash - Chequing
Cash - Savings
$ 1,018.00
800.00
$ 1,818.00
Net Assets
Unrestricted net assets
1,818.00
$ 1,818.00
Toy Club
Statement of Operations
Cash Basis
Month Ending
January 31
Receipts
Donations
$ 1,500.00
Disbursements
Office
Toy purchases
65.00
995.00
Delivery
122.00
1,182.00
Increase in Cash
318.00
1,500.00
$ 1,818.00
Toy Club
General Ledger
Date
01-Jan-05
01-Jan-06
10-Jan-05
11-Jan-05
11-Jan-05
17-Jan-05
28-Jan-05
30-Jan-05
31-Jan-05
31-Jan-05
31-Jan-05
31-Jan-05
Assets
Item
Description
Savings
Balance Forward
1000.00
Transfer (from savings)
-200.00
Donations
Cheque 1
toy purchase
Cheque 2
toy purchase
Cheque 3
delivery
Cheque 4
photocopies
Donations
Payables
delivery
Receivables
promised donation
Inventory
distributions
Deferred Cont
recognize rev
Totals
800.00
Contributions Toy
Chequing Receivable
Inventory
500.00
200.00
1000.00
-650.00
-345.00
-122.00
-65.00
500.00
1018.00
outstanding cheques
cheque 2
Bank statement
345.00
800.00
1363.00
Liabilities
Deferred
Net Assets
Accounts
Payable
Contributions
Boys
Girls
Toys
Toys
Revenues
Unrestricted
Net Assets Donations
Expenses
Office
Toy
Distributions Delivery
Control
total
-1500.00
-600.00
-400.00
650.00
345.00
122.00
65.00
-500.00
0.00
995.00
0.00
-600.00
-400.00
-1500.00
-500.00
65.00
0.00
122.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Toy Club
General Ledger
Date
01-Jan-05
01-Jan-06
10-Jan-05
11-Jan-05
11-Jan-05
17-Jan-05
28-Jan-05
30-Jan-05
31-Jan-05
31-Jan-05
31-Jan-05
31-Jan-05
Assets
Item
Description
Savings
Balance Forward
1000.00
Transfer (from savings)
-200.00
Donations
Cheque 1
toy purchase
Cheque 2
toy purchase
Cheque 3
delivery
Cheque 4
photocopies
Donations
Payables
delivery
Receivables
promised donation
Inventory
distributions
Deferred Cont
recognize rev
Totals
800.00
Contributions Toy
Chequing Receivable
Inventory
500.00
200.00
1000.00
-650.00
-345.00
-122.00
-65.00
500.00
Bank statement
Net Assets
Accounts
Payable
Contributions
Boys
Girls
Toys
Toys
Unrestricted
Net Assets Donations
Revenues
Expenses
Office
Toy
Distributions Delivery
-600.00
-400.00
650.00
345.00
122.00
65.00
-500.00
145.00
-300.00
-400.00
1018.00
1363.00
Control
total
-1500.00
300.00
345.00
800.00
Deferred
-145.00
outstanding cheques
cheque 2
Liabilities
300.00
595.00
400.00
-145.00
100.00
300.00
-500.00
-100.00
-400.00
-1500.00
-1200.00
65.00
400.00
267.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Toy Club
Statement of Financial Position
January 31
Assets
Cash
$ 1,818.00
Contributions Receivable
300.00
Inventory
595.00
$ 2,713.00
Liabilities
Accounts Payable
145.00
Deferred Contributions
Toy donations
600.00
Net Assets
Unrestricted net assets
1,968.00
$ 2,713.00
Toy Club
Statement of Operations
Month Ending
January 31
Revenues
Donations
1,200.00
Expenses
Office
65.00
Toy Distributions
400.00
Delivery
267.00
732.00
468.00
1,500.00
$
1,968.00
13
Capital Assets
Current policy is to capitalize or
gross revenues > $500,000?
NO
YES
Set Policy
Expense:
Capitalize:
1. Provide note
1. Determine
disclosure
threshold
(description, age,
2. Set classes
useful life, amount
(furniture, building,
expensed in period)
computer
equipment, land)
-Non-depreciable
-Depreciable
3. Determine useful
life for each class
and amortize.
14
15
Assets
Current assets:
Cash and short-term investments
Receivables and prepaid expenses
Grain inventory
Land
Capital assets
$ 17,288,142
3,372,62
224,275
$ 20,885,039
127,040
107,752
$ 21,119,831
$ 1,563,139
60,498
10,632,051
8,864,143
$ 21,119,831
2002
$ 4,878,859
$ 3,207,139
3,270,1est 0. Tw09363,20$
17
6.
18
Lead Schedule
Cash
Bank 1
Bank 2
Bank 3
Total Cash
$150.00
$200.00
$100.00
$450.00
19
Bank Reconciliation
Any Not-for-profit
December 31
$200
Add/Subtract
Outstanding cheques
$ 50
Outstanding deposits
$0
Outstanding transfers
$0
$?
$150
20
Investments
Any Not-for-profit
December 31, 2002
Investment
GIC #1
GIC #2
Total
Amount
$ 511.25
$1,014.99
$1,526.24
Interest Accrual
Investment 1
21
Accounts Receivable
Any Not-for-profit
December 31
Name
GST
Receivable
John Doe
Total
Current
100
100
30-60
30
30
60-90
> 90
Total
100
30
130
Contributions Receivable
Any Not-for-profit
December 31
Name
Amount
When
Pledged
Nancy Roo
100
November 5
Kent Talkman
50
December 1
Total
150
Description
Purchase of new
theater supplies
Purchase of new
theater supplies
22
Prepaid Expenses
Expenses paid for in advance are prepaid expenses, and recorded as assets
Examples: prepaid insurance, and rent
Insure prepaids set up in the previous fiscal year are expensed if appropriate
List of all prepaid and supporting calculations
Prepaid Expenses
Any Not-for-profit
December 31
Prepaid
Amount
Insurance
200
Rent
Total
2000
2200
Calculation
$2400 X 1/12 months (Feb 1 Jan
31) record Jan insurance as prepaid
Last months rent, January rent
October 1 entry:
DR rent expense
DR prepaid rent
CR cash
December 31 entry:
DR prepaid rent 1000
CR cash
1000
1000
1000
2000
23
Capital Assets
Capital assets provide a service or benefit that is used up over an extended
period of time
Recommend that you keep a record or list of capital assets even when such
assets are expensed
A listing should include: whether the asset was donated or purchased,
description, amortization rate, date put into service, and cost/fair value
24
Donated /
Purchased
Description
Date put in
Service
Amort Opening
Rate Cost
1/5
1/5
1/3
Computers
01-Jan-01
Total Office Equipment
200
200
300
300
375
Opening Amort
Amort
375
200
575
0
40
40
75
40
115
75
80
155
300
120
420
300
300
100
100
100
100
200
200
100
100
Policy is to take full year's amortization in the year of acquisition and none in the year of disposal.
25
Restricted Contributions
It is important to account for the use of contributions that have been restricted
as contributions are governed by trust law
Restricted contributions need to be accounted for throughout the year to
ensure conditions are met by the organization. This should be documented.
Similarly, the ending balances of unspent and unamortized contributions
should be supported by letters from donors and other supporting
documentation
26
Deferred Contributions
For Youth Work
For Youth Worker's Salaries
3000
500
3500
5000
2000
7000
Description
Opening
Ending Deferred
Deferred
Capital
Capital
Contributions Additions Disposals Contributions
Office desks
01-Jan-02
Total Office Furniture
1/5
0
375
375
Ending
Unamortized
Deferred
Capital
Ending Amort Contributions
Opening
Amort
Amort
375
375
0
0
75
75
75
75
300
300
Capital Assets
Donated /
Purchased
Description
Opening
Cost
1/5
1/5
1/3
Computers
01-Jan-01
Total Office Equipment
300
300
Net Book
Ending Amort Value
375
375
200
0
40
75
40
75
80
300
120
375
575
40
115
155
420
300
300
100
100
100
100
200
200
100
100
200
200
Opening
Amort
Amort
Policy is to take full year's amortization in the year of acquisition and none in the year of disposal.
27
You did not receive the bill till January 15th. The bill is dated January 7th. Do
I accrue this bill if my year-end is December 31?
2. You ordered some office supplies on December 15th. The goods were on
back order. You received them on January 10th with the bill. Do I accrue this
bill?
28
Accounts Payable
Any Not-for-profit
December 31
Name
Jills Printing
Jacks Maintenance
Total
Amount
150
50
200
Gas
Payroll
Total
Amount
50
100
150
29
Loans
Current amounts (payable within one year) and long-term amounts (payable for
all periods over one year) must be broken out separately.
Example
The fiscal year end is December 31. You received a $5,000 loan on
January 1, to be repaid annually over five years with an interest rate of
5%.
At the year end you would need to ensure any amount repayable within a
year is reclassified to the current liabilities.
At the year end, you will need to make the following entry to record the
current portion of the loan repayable:
DR Long Term Debt
1000
CR Current Portion of Long Term Debt
1000
And you will need to accrue the interest payable on the loan:
DR Interest Expense
250
CR Current Portion of Long-Term Debt
250
$1250
Long-term Debt
$4000
30
31
32
33
The GST
Register for the GST?
- if taxable sales are > $50,000 in
four consecutive quarters
- charities only need to register if
taxable sales exceed $50,000 and
gross revenues exceed $250,000
- you may register if input tax
credits on commercial activities
are desired
35
36
37
9. Internal Controls
Control Environment
- effective control starts with managements attitude to controls
- this begins at the Board level
- does the Board understanding the risks relating to fraud and
error, and the controls that mitigate those risks?
- The CICAs audit standards suggest that the Board should
understand managements process for identifying and
responding to the risks of fraud and error
- A finance and audit committee should be considered, to ensure
sufficient attention is given to financial matters and to fiduciary
responsibilities of a financial nature; this also allows the Board
to focus its efforts more efficiently
- The Board should review financial results including budget
versus actual results
38
segregation of duties
reconciliations within and outside the
accounting system
approval of transactions
39
Control Systems
Donation Example
$ Mail
Person A & B
Person C
Person D
ensures the total bank
deposit agrees to the
listing
Expense example
Person A
Person B
Person C
Enters transactions to
general ledger
Reviews coding in FS
40
41
42
43
Donations
Donations can be the highest risk as these amounts cannot be reconciled to revenue
generating activities. It is therefore necessary to have strong controls to ensure these
amounts are completely recorded.
In all cases, where possible, segregate of incompatible tasks: for example canvassing,
receipt of revenues within the organization, bookkeeping, bank deposits
Donations received through the mail
- Mail opened by two people
- Immediate endorsement of cheques for deposit only
- Preparation of a list of the amounts received, signed by preparer
- Forward a copy of the list to the person preparing the deposit slip, and to the
person in charge of bookkeeping
- Segregation of incompatible tasks: opening mail, bookkeeping, bank deposits
Donations received through door-to-door or direct solicitations
- Door-to-door solicitation or collection by two-person teams
- Use of pre-numbered envelopes to collect donations, which are sealed on the spot
when the donation is received; the envelopes may then be forwarded to the
organization with a list of donations received
44
45
46
Canada Customs
and Revenue Agency
200
T2 SHORT RETURN
(2001 and later taxation years)
Code 0101
055
This form serves as a federal and provincial or territorial corporation income tax return, unless the corporation is
located in Quebec, Ontario, or Alberta. If the corporation is located in one of these provinces, you have to file
a separate provincial corporate return.
Parts, sections, subsections, and paragraphs mentioned on this return refer to the Income Tax Act. This return may
contain changes that had not yet become law at the time of printing. If you need more information about items on the
return, including proposed legislation, see the corresponding items in the 2001 T2 Corporation Income Tax Guide.
Send one completed copy of this return, including schedules, and the General Index of Financial Information (GIFI) to your
tax services office or to the tax centre that serves the corporation. You have to file the return within six months after the end
of the corporations taxation year. See items 1 to 5 in the guide for more information on when and how to file T2 returns.
Identification
Business Number (BN) (item 11) . . . . .
Corporations name (item 12)
002
Has the corporation changed its name
since the last time we were notified? . . . .
Address of head office (item 13)
Has the address changed since the
last time we were notified? . . . . . . . . . . .
001
003
1 Yes
2 No
010
1 Yes
2 No
City
MM
DD
YYYY
063
065
016
Country (other than Canada)
1 Yes
018
YYYY
Mailing address (if different from head office address) (item 14)
Has the address changed since the last time we were notified?
020 1 Yes
2 No
c/o
MM
DD
2 No
MM
1 Yes
2 No
070
1 Yes
2 No
071
1 Yes
2 No
DD
022
023
City
025
026
Postal code/ZIP code
028
City
035
036
Postal code/ZIP code
038
040 Type of corporation at the end of the taxation year (item 16)
Canadian-controlled
5
private corporation (CCPC)
072
1 Yes
2 No
076
1 Yes
2 No
078
1 Yes
2 No
032
061
YYYY
012
021
2 No
Taxation year-end
060
017
1 Yes
011
015
004
Other corporation
(please specify, below)
Provincial or territorial
jurisdiction (item 131) . . . . . . . . . . . . . . . . 750
840
085 If the corporation is exempt from tax under section 149 tick one of Tax instalments paid (item 158) . . . . . . . .
the following boxes: (item 25)
894 If there are excess payments in this years instalment account,
An agricultural organization, a board of trade or a chamber of commerce; or,
please indicate whether they should be: (item 159)
1
a non-profit club, society or association
2
Refunded,
1
Non-profit corporations for scientific research and experimental development
3
Transferred to next years account, or
2
Certain farmers and fishermens insurers
4
091
092
093
094
095
096
097
T2 Short E (02)
Page 1 of 2
Canada Customs
and Revenue Agency
Name of corporation
Taxation year-end
Business Number
Year
Month
Day
Liabilities
Current
Current
Cash and deposits . . . . . . . . . . . . . . . . . . . . . . . .
1000
Bank overdraft . . . . . . . . . . . . . . . . . . . . .
2600
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . .
1060
2620
1061
2630
1073
Taxes payable. . . . . . . . . . . . . . . . . . . . . .
2680
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1120
2700
1180
Due to shareholder(s)/director(s). . . . . . . .
2780
1240
2860
1300
2920
1400
2960
1480
3139
1599
Long term
Capital
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3140
1600
Deferred income . . . . . . . . . . . . . . . . . . .
3220
Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . .
1620
3240
1621
) Due to shareholder(s)/director(s). . . . . . . .
3260
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3300
1680
1681
1740
3450
1741
3470
1787
3499
*Total liabilities . . . . . . . . . . . . . . . . . . .
(Add 3139, 3450, and 3470)
1788
1900
1901
2008
2009
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . .
2010
2011
Resource rights . . . . . . . . . . . . . . . . . . . . . . . . . . .
2070
2071
2178
2179
3320
Shareholder equity
3500
Common shares . . . . . . . . . . . . . . . . . . .
Preferred shares . . . . . . . . . . . . . . . . . . .
3520
3540
3600
3620
3640
3660
...................
3680
Dividends declared . . . . . . . . . . . . . . . . . .
3700
Long term
Due from shareholder(s)/director(s) . . . . . . . . . . .
Investment in joint venture(s)/partnership(s) . . . . .
2180
3740
2200
Interfund transfer . . . . . . . . . . . . . . . . . . .
3745
........
2240
3849
2300
2360
2420
2589
2590
*Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(add 1599, 2008, 2009, 2178, 2179,
2599
Page 1
Canada Customs
and Revenue Agency
Section A Identification
Fiscal period
Year
Month
From
Day
Year
Month
Day
Business Number
(BN), if any
to
Name of organization
Trust
(T3) number, if any
Mailing address
City
Type of organization
(see the related guide)
Province
Postal code
100
102
103
Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
105
Other receipts
(please specify)
106
107
101
104
Section C Statement of assets and liabilities at the end of the fiscal period
Assets
Method used to record assets
Cash and short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts receivable from members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108
109
110
111
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets
(please specify)
113
114
116
112
115
Liabilities
Amounts owing to members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts owing to all others
(please specify)
117
119
T1044 E (02)
118
2 No
Canada Customs
and Revenue Agency
Section A Identification
z
To complete this form, you will need the guide called Completing the Registered
Charity Information Return, T4033A.
The Privacy Act protects personal information given on this form, which is kept in a
personal information bank.
Except for yes/no questions, if a question does not apply to your charity, please leave
it blank.
Month
Day
2. BN/registration
number
A1 Has the charity made any changes to its governing documents during the fiscal period (e.g., letters patent, articles of
incorporation, constitution, trust, or by-laws)? (If yes, see the guide.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1500
Yes
No
Yes
No
A2 Was the charity an internal division regulated by the governing documents of another charity (i.e., it had no governing
documents establishing its independent existence)? If yes, what is the name and BN/registration number of the other charity? . . . . 1510
Name
A3 Was the charity linked in a subordinate way to a provincial, national, or international organization? If yes, what is the name of
this organization and its BN/registration number (if applicable)?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1540
Name
Yes
No
A4 Has the charity wound-up, dissolved, or terminated operations? (If yes, see the guide.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1570
A5 Has the charity amalgamated, merged, or consolidated with another organization? (If yes, see the guide.) . . . . . . . . . . . . . . . . . . . 1580
Yes
Yes
No
No
New programs
C3 For programs carried on in Canada, check the appropriate box to show where the programs were carried on.
2000
T3010A E (05)
2010
Provincially or territorially
2020
C4 Did the charity carry on programs, directly or indirectly, outside Canada? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2100
If yes, were any carried out:
z by employees or volunteers of the charity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2110
z
z
z
Yes
No
Yes
No
Yes
No
Yes
Yes
No
No
C5 For programs the charity managed directly, outside of Canada, list the countries or regions where programs were carried on. Do not include countries or
regions where programs were managed by a qualified donee.
C6 Did the charity issue scholarships, bursaries, awards, prizes, or honoraria to an individual during the fiscal period? . . . . . . . . . . . . . 2300
Yes
No
Yes
No
C7 A charity may pursue political activities that are non-partisan, related to its charitable purposes, and limited in extent. During the
fiscal period, did the charity carry out political activities or provide assistance to another organization to carry out political
activities? (See the guide for information on political activities.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2400
C8 If the charity carried on fundraising activities, check all fundraising methods that it used during the fiscal period.
2500
Advertisements/posters/flyers/radio or TV commercials
2560
Fundraising dinners/galas/concerts
2620
Telephone solicitations
2510
Auctions
2570
2630
Tournaments/sporting events
2520
Bingo/casino nights
Collection plates/boxes
Mail campaigns
Planned-giving programs
2640
2530
2580
2590
2540
Door-to-door solicitation
2600
2550
Draws/lotteries
2610
Targeted contacts
Walk-a-thons/bike-a-thons (etc.)
2650
Other
2660 Specify:
C9 Did the charity use incentive-based compensation (e.g., bonuses, commissions, finder's fees, honoraria) for fundraisers? . . . . . . . 2700
If yes, were these incentives paid to:
z contracted fundraisers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2710
Yes
No
Yes
No
Yes
No
C10 Did the charity charge fees for, or otherwise receive regular revenue from goods, services, or the use of the charity's assets? . . . 2800
Yes
No
Artwork/wine/jewellery
3040
Cultural property
3080
3010
Building materials
3050
Ecological property
3090
Privately-held securities
3020
Clothing/furniture/food
Vehicles
3100
3030
3060
3070
Other
3110 Specify:
Section D Compensation
Note: Compensation includes all forms of remuneration (e.g., salaries, fees, and honoraria) and benefits (e.g., personal use of a car or office space).
D1 On average, how many permanent, full-time, compensated positions did the charity have in the fiscal period? . . . . . . . . . . . . . . . . .
3600
D2 For the five highest compensated positions indicate the number of positions in each of the following annual compensation categories. Include only
those positions that are permanent, full-time positions.
3700
$1 $39,999
3710
$40,000 $79,999
3720
$80,000 $119,999
3730
D3 On average, how many part-time or part-year employees did the charity employ in the fiscal period? . . . . . . . . . . . . . . . . . . . . . . . .
3800
D4 What was the total expenditure on compensation for part-time or part-year employees in the fiscal period? . . . . . . . . . . . . . . . . . . .
3850 $
D5 Did the charity compensate any of its directors/trustees or like officials, during the fiscal period? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3900
.00
Yes
No
Yes
No
D6 Except for compensation, did the charity, directly or indirectly, transfer any part of its income or assets to individuals or
organizations not at arm's length to the charity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3950
.00
.00
Liabilities
Accounts payable and accrued liabilities . . . . . 4300
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . 4310
.00
4320
.00
.00
.00
4100
.00
.00
.00
5400
.00
5450
5460
5470
$
$
$
.00
5500
$
$
the amount deemed to be a tax-receipted gift for the fiscal period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5520 $
.00
5510
.00
.00
.00
the amount accumulated for the fiscal period, including income earned for the fiscal period on previously accumulated funds . .
the amount disbursed for the fiscal period for the specified purpose we have granted permission for . . . . . . . . . . . . . . . . . . . .
.00
F4 Of the tax-receipted gifts received by the charity for the fiscal period, enter:
z the total eligible amount of tax-receipted non-cash gifts (gifts in kind) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5600
.00
5610
.00
$
$
z the total eligible amount of tax-receipted enduring property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5640 $
F5 Enter the amount, if any, of enduring property spent in the fiscal period. (See the guide.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5710 $
z
F6 Enter the capital gains from the disposition of enduring property in the fiscal period. (See the guide.) . . . . . . . . . . . . . . . . . . . . . .
5720
F7 Is the charity claiming an amount that is less than the maximum capital gains reduction? (See the guide.)
.00
.00
.00
.................
5730
..............................................
5740
.00
F8 If the charity is taking a special reduction, which we have approved, to its disbursement quota, enter the special reduction
amount for the fiscal period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5750
.00
F9 Did the charity acquire a non-qualifying security or allow a donor to use any of the charity's property under the circumstances
described in the guide during the fiscal period? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5800
If yes, enter the amount from line 11 of form T1259. (See the guide.)
Yes
Yes
No
No
F10 Indicate the average value of property not used for charitable activities or administration during:
z
5900
5910
$
$
.00
.00
6000
Yes
No
6100
Yes
No
6150
Yes
No
G2 Did the foundation incur debts at any time during the fiscal period other than for current operating expenses, in purchasing or
Section H Certification
H1 To be completed by a director/trustee or like official of the charity. It is a serious offence under the Income Tax Act to provide false or deceptive
information.
I certify that the information given on this form, the basic information sheet, and any attachments is, to the best of my knowledge, correct, complete, and
current.
Name (please print)
Position in charity
Signature
Date signed
Physical location (address) of the charity (Do not use rural route or post office box numbers.)
Fax number (
Postal code:
)
0001
Charity BN/ Registration #
Donated by ______________________
First name, initial, last name
Address
______________________
______________________
______________________
______________
For information on all registered charities in Canada under the Income Tax Act please contact:
Canada Revenue Agency www.cra.gc.ca/charities
0001
Charity BN/ Registration #
Donated by ______________________
First name, initial, last name
Address
_______________________
_______________________
_______________________
For information on all registered charities in Canada under the Income Tax Act please contact:
Canada Revenue Agency www.cra.gc.ca/charities
0001
Charity BN/ Registration #
Donated by ______________________
First name, initial, last name
Address
Value of advantage______________________________________B
(cash/ fair market value of property or services)
_______________________
_______________________
_______________________
For information on all registered charities in Canada under the Income Tax Act please contact:
Canada Revenue Agency www.cra.gc.ca/charities
Address of appraiser
Address of appraiser if property appraised.
It is recommended that property be appraised if the value is over $1,000.
However there is no legal requirement to have property appraised. If the property
has been appraised, the name and address of the appraiser must be provided. If
the property has not been appraised, the charity must be able to substantiate the
value of the property.
Donated by
Name of the donor including, in the case of an individual, the donors first name
and initial.
Address
Address of the donor.
Date receipt issued
The day on which the receipt was issued.
Location receipt issued
Place or location receipt was issued.
Authorized signature
The signature of an individual who has been authorized by the charity to
acknowledge donations.
Canada Revenue Agency www.cra.gc.ca/charities
A listing of all registered charities under the Income Tax Act.
there are a number of filings that are potential including filings under the
Charitable Fund Raising Act, and various reports for Arts organizations etc.
52
Dont faith budget, be realistic since some areas of your service may
suffer
Consider previous results in forming expectations
Budget on the same basis as your financial reporting
- A supplemental cash flow budget can account for the non-cash
items such as capital, and deferred contributions
Budgeting should be timely
May want to consider a supplemental revision process
Consider a 3 to 5 year plan
- Which would account for the use of a built up surplus/deficit,
capital expansions, large one time programs that do not occur
annually
Budget to ending surplus and not net income
- Once youve established the appropriate ending surplus as
determined through the long range plan.
53
Year End
54
Actual
Revenues
80
85
Expenses
100
100
-20
-15
20
20
15
15
15
20
55
56
57
Camrose Church
Goals
1) Increase the Quality of Worship
2) Share the Message of Christ
3) Brotherly Love
4) Care for the Lonely
5) Heal the Sick
6) Instruct the Church
58
Camrose Church
Goal 1
Increase the Quality of Worship
Strategies
Encourage the Church to spend more time in prayer for
the worship team and the worship.
Encourage the worship team to pray prior to the service.
Sing songs that express devotion to God.
Find a worship leader with a gift of leading people into
worship of God.
Find out what other churches do successfully in
worship.
59
Camrose Church
Goal 1
Increase the Quality of Worship
Performance Measures
1.
2.
60
Goal 1
Improve the Quality of Worship
Performance Measure
Survey Congregation:
- Target: 80% believe there is an improvement in the quality of
worship over the past year
Results:
- A survey was conducted in February of 2003. 86% per cent of
those surveyed believed there was an increase in the quality of
worship.
61
62
the double entry accounting system was invented by Fra Luca Pacioli in 1494
basically it consists of a balance sheet where debits are the things you own and the
offsetting credits show how those assets are spoken for
to decrease a debit balance we make a credit entry and vice versa
an asset is something with a future benefit
the benefit of an asset can be received over time as in the case of a capital asset
in an NPO, the balance sheet shows the total assets on hand and the availability of
those assets for future services ( a profit organization would show the availability of
assets for distribution to shareholders retained earnings as opposed to net assets)
at the highest level, NPO accounting is simple, we simply show the assets available
for future services and the change in the assets available for future services, the
change is explained in the statement of operations
revenues are an increase in the assets available for future services, and expenses are
decreases in the assets available for future services
expenses are debits because they reduce the balance available for future services
the most confusing area in NPO accounting is the treatment of temporarily restricted
contributions.
Many accountants see temporarily restricted contributions as analogous to unearned
revenues and do not wish to recognize these revenues in the statement of operations
until the related expenses are incurred. This is the predominant view in Canada. The
primary method of accounting in Canada is the deferral method of accounting for
contributions which presents temporarily restricted donations just outside net
assets. No recognition of these revenues is made in the statement of operations until
the related expenses are incurred. Even where the restrictions have been fulfilled,
these contributions continue to be deferred until the related expenses are incurred.
Other accountants believe that since restricted donations represent an increase in the
assets available for future services they should be recognized as revenue immediately.
This is the predominant view in the US. However, the US model, while recognizing
temporarily restricted contributions immediately, still attempts to show some
matching of restricted revenues with related expenses in the statement of operations
by including and reversing these (this can be horrendously complicated to the reader
of the statements).
63
BEGINNING of YEAR
DR
CR
ASSETS
AVAILABILITY OF ASSETS
FOR FUTURE SERVICES
CASH
PAYABLES AND
DEBT
RECEIVABLES
INVENTORY
Assets available
for future services
NET ASSETS
$70 thousand
CAPITAL
ASSETS
64
DR
CR
ASSETS
AVAILABILITY OF ASSETS
FOR FUTURE SERVICES
CASH
for
PAYABLES AND
DEBT
CR
$70K
RECEIVABLES
Revenues
- Economic events
resulting in
increases in
available assets
INVENTORY
NET ASSETS
Assets available
for future services
CAPITAL
ASSETS
$350K
contributions of
$70
thousand
cash,
capital assets,
promises of cash
Expenses
- Economic events
resulting in
decreases in
available assets
DRs
-270K
$150K
65
DR
CR
ASSETS
AVAILABILITY OF ASSETS
FOR FUTURE SERVICES
CASH
PAYABLES AND
DEBT
CR
DEFERRED
CONTRIBUTIONS
RECEIVABLES
$70K
Revenues
- Economic events
resulting in
increases in
available assets
INVENTORY
NET ASSETS
CAPITAL
ASSETS
END of YEAR
Assets available
for future services
(except as above)
$300K
contributions of
cash, capital assets,
promises of cash
Expenses
- Economic events
resulting in
decreases in
available assets
DRs
-270K
$100K
66
Controlled Organizations
- The first fundamental principle of accounting is that an accounting should
be made for the activities under the control of a person or group of
persons, which is normally a board of directors
- Concept can be quite significant in the for-profit sector
- Definition of control is similar in the not-for-profit sector
- the ability to determine strategic operating, investing and financing
activities
- presumed to exist where the organization can appoint the
majority of the board
- control may also be deemed to exist if
- changes to bylaws or charter require consent,
- significant economic interest exists
- or the purposes of the organizations are integrated
- consolidation or note disclosure is required
Significantly Influenced Organizations
- the ability to influence strategic operating, investing and financing
activities
- proportionate consolidation of for profit entities
- otherwise note disclosure of relationship and organizations
purpose, community of service, tax status and any economic
interest
Economic Interest
- another organization holds resources to generate revenue or
services, or if there is an obligation to fund the liabilities of
another organization
- note disclosure
Funds held in trust
- the accounting rules are not clearly defined
- generally an asset only belongs to an organization if it can control
it
- note disclosure may be the most appropriate
67
Control
The ability to control the financial decisions
of another organization
Presumed to be present if there is the ability
to appoint the majority of board members of
another organization
Other Indicators of Control
Significant Economic Interest
Ability to Change Bylaws
Common and Complimentary Objectives
68
Once youve established what you are accounting for, the next step is to
decide how you want to account your activities
Unlike for-profit accounting which allows only one method of accounting,
there are a number of choices
Perhaps the most common set of NPO financial statements presents a single
column balance sheet and a single column statement of operations
- Example: Canadian Foodgrains Bank
The alternative is Fund Accounting
69
Assets
Current assets:
Cash and short-term investments
Receivables and prepaid expenses
Grain inventory
Land
Capital assets
$ 17,288,142
3,372,62
224,275
$ 20,885,039
127,040
107,752
$ 21,119,831
$ 1,563,139
60,498
10,632,051
8,864,143
$ 21,119,831
2002
$ 4,878,859
$ 3,207,139
3,270,1est 0. Tw09363,20$
Financial Statements of
Dalhousie Medical Research Foundation
Statement of Operations and Changes in Fund Balances
Year Ended March 31, 2003
General
Fund
Revenue
Investment
income (Note 4)
$ 398,599
Donations
1,319,066
Write-down of investments (465,879)
1,251,786
Expenses
Research activities:
Equipment grants
226,097
Less: recovery of grants
(4,701)
Associateships
96,091
Fall River health forum
(Note 5)
Fellowships
Studentships
Prizes and awards
3,000
Research
Grants
492,750
Laboratory renovations
850,000
Travel and other (Note 5)
1,663,237
Administrative and
support cost
555,884
2,219,121
Excess of revenue over expenses
(expenses over revenue)
(967,335)
Endowment
Fund
723,346 $ (234,518)
516,491
311,122
(267,953)
(333,344)
971,884
(256,740)
2002
Total
Total
887,427
2,146,679
(1,067,176)
1,966,930
$ 2,484,306
3,319,033
(373,186)
5,430,153
226,097
(4,701)
96,091
-
159,850
(8,800)
87,458
104,076
59,442
45,782
84,175
59,442
45,782
87,175
151,826
56,851
78,994
340,690
530,089
833,440
850,000
2,193,326
154,957
500,000
10,467
1,295,679
530,089
555,884
2,749,210
418,858
1,714,538
441,795
(256,740)
(782,280)
3,715,616
1,441,489
1,887,900
37,244,645
40,574,034
36,858,418
(152,772)
82,436
(235,208)
$ 2,412,131 $ 36,752,697
$ 39,791,754
$ 40,574,034
626,926
34
Restricted
Fund
2003
General
Fund
Assets
Current
Cash and cash equivalents $
30,688
Prepaid expenses
3,300
Receivables
Accrued investment income
3,716
Commodity tax receivable`
64,125
Foreign taxes recoverable
545
Due from Dalhousie University 95,837
198,211
Investments (Note 3)
Interfund
Restricted
Fund
641,926
- $
-
2002
Total
Total
30,688
3,300
119,060
-
232,119
55,603
287,722
235,835
64,125
95,837
95,837
485,933
247,583
28,340
61,784
61,784
456,767
2,387,523
(198,118)
36,377,768
374,933
39,385,821
-
40,210,331
-
$ 2,477,127 $36,752,701
$ 39,871,754
$ 40,667,098
620,530
(176,815)
$
Endowment
Fund
2003
Fund Balances
15,000
626,926
$
641,926
65,000 $
2,412,131
80,000
93,064
36,752,697
39,791,754
40,574,034
$ 2,477,131 $36,752,697
$ 39,871,754
$ 40,667,098
Director
Director
Here we present a trial balance for a fictitious organization. We have bolded the accounts
for the capital fund, the rest of the accounts are the operating fund.
Trial Balance - all accounts
dr
Bank - operating account
Bank - capital account
Contributions receivable
Flower Pin inventory
Capital assets
Accumulated ammortization
Accounts payable
Bank loan - current portion
Bank loan - long term
Deferred capital contributions
Deferred contributions
Net assets
Flower Pin sales
Flower Pin cost of sales
Capital contributions recognized
Unrestricted contributions
Spring fling contributions recognized
Administration costs
Amortization
Interest expense
Spring fling expenses
cr
350
150
100
300
2000
800
100
130
500
400
200
450
450
150
50
100
500
65
100
65
400
3680
3680
Below we separate out the operating fund accounts, note that we need to restate the
opening net asset balance, pulling out the opening balance for the operating fund, in order
to balance the accounts.
Operating Fund
dr
Bank - operating account
Contributions receivable
Flower Pin inventory
Accounts payable
Deferred
contributions
Operating Fund - opening balance
Flower Pin sales
Flower Pin cost of sales
Unrestricted contributions
Spring fling contributions recognized
Administration costs
Spring fling expenses
cr
350
100
300
100
200
15
450
150
100
500
65
400
1365
1365
73
Below we present the capital fund accounts, with the opening balance of the capital fund.
See the opening balance of the two funds equals the opening net assets we presented
earlier, under the deferral method.
Capital Fund
dr
Bank - capital account
Capital assets
Accumulated ammortization
Bank loan - current portion
Bank loan - long term
Deferred capital contributions
Capital Fund - opening balance
Capital contributions recognized
Amortization
Interest expense
cr
150
2000
800
130
500
400
435
50
100
65
2315
2315
15
435
450
74
75
Capital Assets
- are amortized but may be expensed when
purchased if total revenues are less than $500,000
- cannot revert to this policy one assets have been
capitalized
- amortization should be straight-line over the
expected life of the asset
- can use a threshold
Collections
- collections of rare, preserved and protected items
such as works of art and historic treasures do not
need to be capitalized if there is a policy to maintain
the collection
Capital Leases
- the asset cost and liability needs to be recognized in
the period of the inception of the lease if:
- the present value of minimum lease payments
is at least 90% of fair value
- the lease period is at least 75% of the
economic life
- there is a bargain purchase option
- title to the asset transfers
Inventory
- the exception for capital assets does not apply to
inventory
- inventory of consumable items and items held for
resale should be recorded if material
76
Expense Presentation
Level of detail can be an issue in NPOs, depending on who the users are
Expenses can be reported by object, function, or program: but preferably not a
mix of these methods.
Presentation by object and function is required by government organizations.
In the United States, FASB No. 117 requires the functional classification of
expenses, and for certain non-profits, voluntary health and welfare organizations,
it requires the additional disclosure of the natural classification of expenses. For
other organizations, FASB only suggests this as desirable disclosure. The natural
classification of expenses shows expenses by the nature of the expense, for
example salaries, professional fees, interest and so on. This disclosure would
typically be presented in a supporting schedule that reconciles to the expenses
reported in the statement of operations.
77
Statement of Operations
For the year ended March 31, 2001
(in thousands)
2001
Actual
$ 4,048,000
135,000
1,086
4,184,086
$ 10,585,955
255,968
3,562
10,845,485
$ 4,681,284
133,599
8,200
4,139
4,827,222
2,631
65,761
16,879
1,843
87,114
2,965
61,118
16,879
1,899
82,861
2,553
61,040
15,338
1,307
80,238
35
35
185
(29)
156
(70)
30
(40)
87,149
83,017
80,198
$ 4,096,937
$ 10,762,468
$ 4,747,024
Valuation Adjustments
Total expenses
The accompanying notes and schedules are part of these financial statements.
Statement of Operations
Budget
2000
Actual
81
Budget
2001
Actual
2000
Actual
$ 33,706
$ 32,143
$31,743
25,925
21,027
19,560
Grants
23,494
26,365
25,088
71
64
77
4,558
3,846
4,388
87,754
83,445
80,856
Voted:
Schedule 3
S c h e d u l e o f E x p e n s e D i re c t l y I n c u r re d
91
Less: Recovery from support service arrangements
with related parties
Total Voted Expenses
(640)
(584)
(618)
$ 87,114
$ 82,861
$ 80,238
The Department provides financial services to Alberta Environment and Alberta Agriculture Food and Rural
Development. Costs incurred for these services are recovered from Alberta Environment.
80
An organization may chose to set up as restricted funds at any time for any
purpose.
81
Someone makes a $20,000 contribution to pay the insurance invoice for one
years insurance Sept 30 to Sept 30.
1) On receipt of the donation
Dr
Cr
2) On purchase of the insurance
Dr
Cr
2) When the current years expense is recognized
Dr
Cr
Dr
Cr
82
83
18. The Statement of Changes in Net Assets and the Statement of Cash Flows
The Statement of Changes in Net Assets:
Accounting for Internally Restricted Amounts, and Changes in the
Investment in Capital Assets.
-
We account for the changes in the net asset balance on the statement of
changes in net assets
- Athabasca University example
84
20
thousands
20
40
Capital
Assets
40
Assets
Liabilities
20
Net
Assets or
Fund
Balances
on the
Restricted
Fund
Method
Deferred
Contributions or
Externally restricted
fund balances
unrestricted
internally
restricted
60
invested
in capital
assets
Net Assets on
the Deferral
Method
85
Page 1 of 1
Current Liabilities
Accounts payable and accruals
$1,834
$1,693
4,455
3,755
7,682
6,995
957
1,639
398
47
429
15,373
14,511
153
200
13,878
13,038
1,261
30,665
27,749
9,471
8,472
1,089
1,089
4,735
5,763
1,274
15,295
16,598
Unrestricted
$45,960 $44,347
http://www.athabascau.ca/report2002/financ.htm
11/11/2004
Page 1 of 1
2002
2001
Investment
in Capital
Internally
Assets Endowments Restricted Unrestricted
Balance, beginning of year
Total
Total
$8,472
$1,089
$5,763
(1,478) (1,478)
2,345
(2,345)
Repayment of obligations
under capital lease
429
(429)
175
175
Less amortization
of internally
funded assets
(1,950)
1,950
Interfund transfers
(1,028)
1,028
$9,471
$1,089
$4,735
Excess of expenses
over revenue
Investment in capital
assets
http://www.athabascau.ca/report2002/assets_print.htm
$ - $15,295 $16,598
11/11/2004
Page 1 of 1
SpringTime
Statement of Cash Flows
For the Year Ending December 31, 2000
2000
1999
800
700
200
500
(500)
(550)
(60)
(70)
440
580
10,200
(10,200)
100
Contribution of desk
200
(200)
(100)
(100)
(100)
440
480
500
20
http://www.cassfraser.ca/html/gaap/direct_method.html
940
500
11/11/2004
458,003 $
2003
705,204
124,410
(10,305)
94,081
5,108
572,108
804,393
(32,998)
(7,264)
35,716
(14,622)
477
(33,206)
567,562
757,042
(227,461)
21,000
(67,728)
595
(206,461)
(67,133)
361,101
689,909
2,006,164
1,316,255
2,367,265 $
2,006,164
1,168,450 $
1,198,815
806,455
1,199,709
2,367,265 $
2,006,164
90
The Options
Pros and Cons
Restricted Fund Method
Pros
Cons
Deferral Method
Pros
Cons
91
The Options
Pros and Cons
Capitalizing Assets
Organizations with Gross Revenues < $500,000
Pros
Cons
Cons
Requires valuations to be made.
This may be time consuming and
possibly impractical.
Disclosure of amounts subject to
significant uncertainty is appropriate
only in the notes
92