GAAP at Ministries 0004-01 ZZall

GAAP at Ministries 0004-01 ZZall

                                                                          - - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                     TO: Interested Ministries                                                                                                                            FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                                                   FILE: 0004-01/all

                      RE: GAAP at Ministries                                                                                                                               Originated March 1999

    OK, what is "GAAP at Ministries" --- in most "gap" situations, something is missing? Well, in this case nothing is missing, but it is another one of our vocational acronyms that stands for:

     G)enerally A)ccepted A)ccounting P)rinciples, or GAAP.

     So without getting into a bunch of additional CPA vocational acronyms, let's just say that professional accountants must do things 'according to hoyle', or they have certain pronounced finance accounting rules and regulations as financial information is captured and displayed for applicable users. Some of the GAAPs we will examine here are generic and some pertain uniquely to Ministry, or Non Profit Organization, finances. By the way, some view the "P" in GAAP to also include "Practices", "Procedures" and/or "Policies."

            In our opinion, we believe such GAAP issues are divided into -

That which pertains to Non Year-End - Daily /Monthly ---- and is primarily for internal management reporting purposes, and

That which pertains primarily to Year End, or Periodic, or the emphasis is external reporting for the Ministry's public, etc.

            Accordingly, we have identified GAAP topics below per type of Ministry and placed them into these two categories. Please notice how we have used (X) footnotes to point you to applicable later information. Please go to 0127 to also see our views of having "Current' and "Dormant" sets of books -- especially as to "year end" matters.

Non Year End - Daily/Monthly (Internal Reporting Emphasis)

Mission

Camps &

Church

School

Agencies

Others

Accounts Receivable (c)

See Below

Yes

See Below

Yes

Inventory

Retail Goods (a)

See Below

See Below

See Below

Yes

SCRIP (b)

Yes

Yes

See Below

See Below

Vendors/Plastic Payable (c)

Yes

Yes

Yes

Yes

Other Liabilities

Prepaid Income

Yes

Yes

See Below

Yes

Agency Monies

Yes

Yes

See Below

Yes

Operational Issues

- - -- Accrual Basis of Accounting - - -:

(c) Or Income as Earned

Yes

Yes

Yes

Yes

(c) and Expenditures as Incurred

Yes

Yes

Yes

Yes

(d) Furniture & Equip (Click Here)

Yes

Yes

Yes

Yes

    SetASides fr Gen Fund (Click Here) Yes Yes Yes Yes

(b) No Deprecation Exp (Click Here) Yes Yes Yes Yes

(d) Debt Retirement

Yes

Yes

Yes

Yes

   "See Below" - not usually applicable for this Ministry

   (a) Ask us about monthly Cost of Goods Accounting

   (b) Click Here for more info on this topic

   (c) Click Here re Accrual basis of accounting

   (d) Transferred at least annually to FAssets/Liabilities

            Year End Only (External Reporting Emphasis)

Mission

Camps &

Church

School

Agencies

All Others

Prepaid Expenses

Insurance

Yes

Yes

Yes

Yes

Others

Yes

Yes

Yes

Yes

Inventory - Supplies

Yes

Yes

Yes

Yes

Update Investments to Fair Market Value (FMV) (2) Yes Yes Yes Yes

Fixed Asset Capitalization

Above

Above

Above

Above

Reduction of Debt

Above

Above

Above

Above

Depreciation Accounting (4)

Yes

Yes

Yes

Yes

Functional Expense Accounting

(1)

(1)

Yes

Yes

Pledge Accounting (1)

Yes

Maybe

Yes

Maybe

Released Restrictions --
Click here for more Info with an example Yes Yes Yes Yes

Net Assets (Fund Balances) as:

Unrestricted

Yes

Yes

Yes

Yes

Temp Restricted

Yes

Yes

Yes

Yes

Perm Restricted

Yes

Yes

Yes

Yes

"Above": Please also note "Daily/Monthly" comments above

(1) Discuss with your Ministry Savvy CPA; Also see 2040

"Maybe" above means not likely applicable

                    Some other link references to GAAP on this web site are listed below

Annual GAAP Church Financial Info
Church-Fixed Assets Acctg Issues
Current-Dormant Sets of Books
Fixed Asset and LB&E Issues l
GAAP and Budgets
GAAP compliance via QuickBooks
Overkill re GAAP at a Church
Pledge Accounting
QB Fund Accounting FAQ

     Link to the following excellent resource for details on Ministry/Not-for-Profit GAAP and related information:.

http://www.muridae.com/nporegulation/accounting.html#general_subject

   The bulk of this Publication originated in March 1999 and was . UPTD: May 02, 2008

HOME | ABOUT US   |    OUR PURPOSE   |   SITEMAP | COMPUTER FUND ACCTG | HELPS   | GLOSSARY

     (1) An Online Document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
       (2) WRIT formats include the perspective of Jim@bcidot.org via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and FAQ, response to Frequently Asked Questions