npo final ppt

7/25/2019 Npo Final Ppt

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AccountingNot for P

Organiz


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Not-for-Prot Organization

Not-for-prot organization is an entitprimary sources of revenue is madcontribution from the private dierentiating it from those who are sby market transactions or gov

resources


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Not-for-prot Organization Commercial Organi

!as signicant contributions from

resource providers who do not

e"pect to get anything in return

!as signicant contribu

investors who e"pects

their investments

!as an operating purpose Operates primari#y for

prot

!as no owners !as owners, evide

ownership $stocks%shares&

!as stakeho#ders !as shareho#ders%stock


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'he stakeho#ders of a NPO consists of i

members%beneciaries, its governing boar

its management%sta, donors, th

government, vo#unteers, and the gener

pub#ic whose e"pectations are geare

towards socia# and economic purposes #ik

services, (O), socia# *ustice, attainment the purposes of funds, contribution to th

deve#opment of specic concerns, an

contribution to the deve#opment of societ

in genera#


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NPO +overnance and

Accountabi#ity$Princip#es&

A)(N..A//O0N'A1)2)'

3'(AN.PA

3


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0.(.

4'(NA2

)N'(NA2


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External Users Information Need

a. Donors/Grantors/Fnding

agencies

- 5egree of attainm

deve#opment ob*ectives a

in nancia# statements and

- 5egree of comp#iance w

amount and manner of us- 5egree of comp#ian

prescribed nancia# acco

reporting system and proc

a. Creditors !"an#s/Financing

Instittions

- )nformation on abi#ity to p

so#vency, #i6uidity, and

we## as status of their secu

a. Go$ernment %gencies - /omp#iance with #aws,

regu#ations, payment or

any& and reportoria# re6uir

a. General &'lic - ect of activities of NP

community and society in


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Internal Users Information Ne

a. (em'ers - )nformation on

donations, grants, a

from fund raising ac

used

- Other information ne

manageria# remunera

assets, managemen

etca. (anagement )eam - 1oard of directors%

po#icy-making, strate

making, and fu

trusteeship%stewardsh- "ecutive 5irector fo

decision-making

- Program%pro*ect ma

pro*ect%program re#a

making


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*estricted andUnrestricted

+pport


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+enera##y, restricted and unrestricted contributiomeasured at fair $ale

(ecognized as revenues or gains in the period threceived

(ecognized as assets, decrease in #iabi#ities, or edepending on the form of the benets received


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5onors can sometimes te## the organization how it the contributed property,

which means that the NP must account for t,ree

categories of net assets

unrestricted net assets

temporari#y restricted net assets

0 permanent#y restricted net assets


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438, a ctitious NP entity invo#ved in cancer receives 9:;;,;;; in unrestricted cash from we## as 9

/ash :


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Donor-imposed restrictiondistinguished from

donor-imposed condition

5onor-imposed restriction #imits the use odonated assets

5onor-imposed condition creates a barriemust be overcome before assets transferpromised become contributions received


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Gifts of &ropert12 &lant and E3ipme

ay be restricted or unrestricted depending on thorganization?s accounting po#icy or the donor?s re

)f the contributed PP are restricted by the donorfor a certain period of time, the assets are reportrestricted support

5epreciation is recorded as an e"pense in unrestassets and rec#assied for the amount of the depfrom restricted to unrestricted net assets


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Gifts of &ropert12 &lant and E3ipme

'he accounting po#icy must be disc#osed in the note

nancia# statements

A 'he organization may adopt an accouthat imp#ies time restriction that e"pires over tdonated asset

1 )f no po#icy imp#ying a time restriction e"isare no donor-imposed restrictions, the donation aunrestricted support


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ndowment und

An endowment fund is simi#ar tonone"pendab#e trust fund of a governentity

A permanent endowment fund is one the principa# must be maintained indein revenue producing investments


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Accrua# 1asis of accounting

A## not for prot organizations accounting foand e"penses using the accrua# basis of acc

(evenues are reported when earned and e"are reported when materia#s or services are


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Accrua# basis of accounting

'he primary emphasis in reporting on NPO?sgenera##y on disc#osing the sources

)t a#so re6uires not-for-prot organization th+AAP basic nancia# statements recognizedepreciation e"pense in #ong #ived assets


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Accrua# of grants and donation

NPO?s record a donor?s unconditiona# commcontribute as revenue provided that the conis rea#ized and enforceab#e


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Accrua# of e"penses

.ome e"penses are recognized when they aBmatchedC to the revenue which they gener

.ome e"penses are recognized at the sca# accounting period in which they are used byorganization

.ome e"penses are the resu#t of a systemata##ocation of the costs to the accounting per


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Accrua# basis in #i6uidation of cadvances

Dhen the accrua# is used it is paramount th#i6uidation shou#d prompt or immediate#y aactivity

2i6uidation submitted very #ate defeats the the accrua# basis as mentioned above


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/#assications of net assets

'he nancia# statements reporting re6uirembased on the division of the net assets into tc#assications>

0nrestricted Net Assets'emporari#y (estricted Net Assets

Permanent#y (estricted Net Assets


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Accounting for revenues, gainscontributions

/ontribution is dened as unconditiona# trancash or other assets to an entity or a sett#emcance##ation of its #iabi#ities in a vo#untary, noreciproca# transfer by other entity other than

'he transfer invo#ves cash and other assets

asses inc#ude bui#ding, securities, used of facservices, and unconditiona# promise to give

'he items are recorded at fair va#ue at the ddonation


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"ception to the genera# recognition provision are for contribution

+er$ices- donated ser$ices are recognize onl1 if>

/reate or enhance non-nancia# assets

(e6uires specia#ized ski##s, provided by individua# possessi

abi#ities, and typica##y wou#d have to be purchased if not prdonation

4or#s of %rt- donated of 5or# of art2 ,istorical treasreto 'e recognized as contri'tion if t,e donated items arcollection t,at are6

!e#d for pub#ic e"hibition, education, or research rather tha

gain

Protected and preserved

.ub*ect to an organizations po#icy that re6uires the proceeof co##ection items to be used to ac6uire other items for co


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A pledgeis a written or ora# agreement to contribute caor other assets to another entity

P#edges may be conditiona# or unconditiona#

A conditional pledge depends on the occurrence of aspecied future and uncertain event to bind the promisor

An nconditional pledge depends on#y on the passageof time or demand by the promise for performance


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A##owance for doubtfu# contribution shou#d be estab#ishedon historica# e"perience and other factors to cover uncerconcerning co##ectivity

/ontribution (eceivab#e 444

(evenue- unrestricted contribution 444

Provision from unco##ectib#e contribution 444

A##owance for 0nco##ectib#e /ontributions 444


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Go$ernment Grantsthat re6uire performance by the norganization wi## be accounted for as refundab#e deposits

unti# earned 0nrestricted revenue wi## be earned when eare made in con*unction with the grant

+rant received from nationa# government

/ash 444

+overnment +rants (efundab#e 444


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%cconting for Expenses


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NPOs conducts activities that combine program and fund raising wherein costs are reported entire#y as a functiona# program e"pense a#one e"cept>

- /ost of a## materia#s and activities that inc#ude a fund raising appea# shou#d be reported as fund raising cost un#ess a bona de program or management function

- /riteria of purpose, audience, and content must be met in order to conc#ude that a bona de program or management and genera# function has been conducted in con*unction with the appea# of funds

- )f a bona de program or management function has been conducted, the *oint costs shou#d be a##ocated using e6uitab#e a##ocation base

- /ertain information must be disc#osed if *oint costs are a##ocated


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Financial *eports

and Disclosres


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%. "alance +,eet or +tatement of Financial &osition

778"

%++E)+

CU**EN) %++E)+

Cas, and cas, e3i$alents 8888

*ecei$a'le2 net 8888

In$entories 8888

O9ce +pplies 8888

&repaid expenses 8888

)otal Crrent %ssets 8888

NON-CU**EN) %++E)+

In$estments 8888

&ropert1 and e3ipment2 net 8888

Ot,er non- crrent assets 8888

)otal Non-Crrent %ssets 8888

)O)%: %++E)+ 8888


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Option :> )n the .tatement of Activities

%fter Net Excess !Decit;

Net Excess !Decit; for t,e period

%dd6 Net Excess "eginning

Net Excess Ending !for5arded to t,e statement of nancial po


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:;;41 (estricted :;;4A (

0nrestri

cted

'empora

ri#y

Permane

nt#y

0nrestric

ted

'em

i#y4PN..

Programs%Pro*ecte"p

4444 - - 4444

+en F adm "pense 4444 - - 4444

und raising

e"penses

4444 - - 4444

Other e"penses 4444 - - 4444

'ota# "penditures 4444 - - 4444

"cess of support Fincome overe"penditures

4444 - - 4444


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(estricted Net Assets are those whose use is #imited by eitherestriction or a purpose restriction

A time restriction re6uires that the resources be used duringperiod of time .ometimes time restriction species that thecannot be used unti# after a specic point of time

A purpose restriction, as its name suggests, re6uires that resused for a specic purpose, such as a specic program% pro*eorganization


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1 Notes to inancia# .tatement and supporting .chedu#e

Nature and purpose of the organization, inc#domici#e and #ega# form of the organization

5escription of funds% pro*ects% services

Number of members of the governing boardgenera# assemb#y%membership and emp#oye

changes during the reporting period

1asis of preparation of the nancia# statements


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1asis of preparation of the nancia# statements

Accounting po#icies to be disc#osed wi## assist users in underway in which transactions and events are reEected in the nstatements

a*ority of the resource providers

(ecipients of materia# donations given, if any


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"p#anation to signicant impairment of assets

/ontingencies, commitments, and other nancia# disc#osure

2ien on assets and other restrictions

Other


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/ash #ow .tatement

/ h # .t t t


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/ash #ow .tatement

'he .tatement of cash Eow provides a sumavai#ab#e cash and its use during the accoperiod

/ash #ows are c#assied into>

Operating Activities

)nvesting Activities

inancing Activities

.tatement of cash Eows can be presented


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.tatement of cash Eows can be presentedone of two methods>

5irect ethod

'he 5irect method actua# receipt and disbursement for each item of c

outEows

)ndirect ethod

'he indirect method begins with the resu#t of operating activities repo

statement of activities then ad*ust his amount to convert it to a cashreceipts%disbursement basis


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Operating Activities- reEect a## cash transactions tnot c#assied as either investing or nancing activ

Cash inows from operating activities includes:

+rant

/ontributions $other than #ong term restricted contribut

(eceipts from the sa#e of goods and services

Cash outows for operating activities includes:

5isbursement made for program%pro*ect activities

5isbursement to emp#oyees, vendor and contractors

Payment of ta"es, if any

+rants made by the organization to other organization,


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Accounting for


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Accounting forGo#untary !ea#th andDe#fare Organization

*e$ene +orces>/ontributions from donors who do not direct#y bene

organization?s programs

&rograms6

!ea#th F De#fare

/ommunity .ervice $care for e#der#y, programs for inprograms for handicapped, environmenta# protection

Accounting Princip#es and Proce


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Accounting Princip#es and Proce

)nEow of(esource

s

Pub#ic.upport

(evenue


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Contribution


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&'lic +pport

.pecia# ven.upport

2egacies an1e6uests

(eceived froederated aNon ederat

/ampaign


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/ t ib ti


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/ontributions

/onditions )f received without prior commitment to give>

CREDIT - %CCOUN) CON)*I"U)ION+

P#edges>

*ecognized in t,e period pledges are rec

*ecorded at G*O++ amont

DE"I) < CON)*I"U)ION+ *ECEI=%":E

C*EDI) < CON)*I"U)ION *E=ENUE

Establish provision(expense) and allowanestimated uncollectible pledges based oncollection experience

/ t ib ti


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/ontributions

/onditions

)f donor imposed restriction e"pires $time%fu###m *ecognized in t,e period restriction expires

*eclassication entr1 to increase nrestricteddecrease restricted assets

/onditiona# gift or promise to gi$e is not contri'tion ntil met Disclosed in t,e notes

/ t ib ti


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.ecurity and other property received *ecorded at fair $ale at t,e time of receipt

5onated materia#s to be used in providing serviprocessed for subse6uent sa#es

DE"I) < IN=EN)O*>C*EDI) < UN*E+)*IC)ED CON)*I"U)ION+

/ontributions

/onditions

/ontributions


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+rant to use bui#ding faci#ities *ecorded at fair $ale !amont normall1 c,arg

rent;

*ecognized as nrestricted2 temporaril1 restrpermanentl1 restricted

5onated services DE"I) < +%:%*> E8&EN+E

C*EDI) < CON)*I"U)ION

/ontributions

/onditions

/ontributio


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&'lic +pport

Special EvenSupport

2egacies an1e6uests


/ampaign

.pecia# vents .upport


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.pecia# fund raising events in which the participant has topportunity to receive something of va#ue in e"change focontribution

raHes, bingo games, fund raising concerts



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(GN0 (O GN'

C*EDI) < +&ECI%: E=EN)+ +U&&O*) FUND

5)(/' /O.' O GN' $e"c#uding promotiona# cost&

DE"I) < CO+) OF +&ECI%: E=EN)+

ON +O)N+ A/')G)'3 % AIO( A/')G)'3

*ECO*D G*O++ *E=ENUE DI*EC)+ CO+)+ %*E FUND *%I+ING E8&EN+E+

If peripheral or incidental the ma be disclosed as

Promotiona# costs are charged fund raising e"pense

/onditions

p pp

/ontributio


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&'lic +pport

.pecia# ven.upport

Legacies anBequests


/ampaign

2egacies and 1e6uests Maor contributio


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.hown as separate item of pub#ic support under

and be6uests

Dhen reasonab#y certain as to amount to be rece

C*EDI)< :egacies and "e3ests

/onditions


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(eceived from ederated and Non


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(eceived from ederated and Nonederated /ampaigns

0sua##y unrestricted

ederated /ampaign@ cooperative enterprise$ owcontrolled b% the non prot members$ whose purraising program and operating capital for each m

agenc% Non-ederated /ampaign @ amount raised b% indprofessional


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UN*E+)*IC)ED *E=UNUE+


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(E("E*+?I& DUE+*E=ENUE&*OG*%( +E*=ICE FEE++%:E+ OF &U":IC%)ION+

%ND +U&&:IE+

UN*E+)*IC)ED2 )E(&O*%*I:>*E+)*IC)ED O* &E*(%NEN):>


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*E+)*IC)ED O* &E*(%NEN):>*E+)*IC)ED

IN=E+)(EN) *E=ENUE+*E%:I@ED G%IN ONIN=E+)(EN))*%N+%C)ION+

NE) INC*E%+E!DEC*E%+E; IN C%**>ING=%:UE OF IN=E+)(EN)+


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&*OG*%( %ND+U&&O*)ING +E*=ICE+

CO+)

&*OG*%( +E*=ICE+


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*E+E%*C?&U":IC EDUC%)ION

&*OFE++ION%: EDUC%)IONCO((UNI)> +E*=ICE+

+U&&O*)ING +E*=ICE+

(%N%GE(EN) %ND GENE*%:%C)I=I)IE+FUND-*%I+ING


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'ypica# 'ransaction of Go#u!ea#th and De#fare Organiz

. # b#


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.amp#e prob#em

J A neighborhood organized a vo#untary hea#th a

Association ca##ed Action against /hi#d Abuse )n order to raassociation conduct a fund raising activities in Ianuary


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und raising e"penses J


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:A/AO co##ected P

/ash


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/ontribution receivab#e K; ;;;

'o record co##ection of contribution receivab#e

)n :;J: the fu## amount of ; ;;; was co##ected

/ash ; ;;;

A##owance for unco##ectib#e contribution : ;;;

/ontribution receivab#e ; ;;;

0nrestricted support-contribution : ;;;

'o record co##ection of receivab#e and recognized unrestricted dierence between the estimated and actua# a##owance for u

'emporary restricted net asset ; ;;;

0nrestricted net asset ; ;;;

'o rec#assify net assets for which imp#ied time restriction has b


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L A donor gives A/AO P J< ;;; that is restricted for p#apro*ect A/AO purchase materia#s and supp#ies for the con

the p#ayground pro*ect for P J: ;;; and paid

P L ;;; to workers for the construction of the p#aygro

ntries>

/ash J< ;;;


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'emporari#y restricted support- contribution J< ;;;

'o record donation for specic purpose

"penses J< ;;;

/ash J< ;;;

'o record cost of construction of p#ayground pro*ect

'emporari#y restricted net assets J< ;;;

0nrestricted net asset J< ;;;

'o rec#assify net assets restricted for the p#ayground for which the restriction has been met


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5uring the year amitz construction corp donated a usA/AO 'he fair va#ue of the van is P JQ; ;;; and it has

remaining usefu# #ife 'he van wi## be used for their commuprogram A/AO has po#icy of imp#ying a time restriction o

PP

ntries>


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6uipment JQ; ;;;

(estricted-support JQ; ;;;

'o record receipt of donated van

5epreciation e"pense @ community service LK ;;;

Accumu#ated depreciation - e6uipmentLK;;;

'o record depreciation

(estricted net assets LK ;;;

0nrestricted net assets LK ;;;

'o record rec#assication of net assets for which restricsatised


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%CCOUN)ING FO* NO)-FO*-&*OFI) CO::EGUNI=E*+I)IE+ %ND ?E%:)? C%*E O*G%NI@

CO::EGE+ %ND UNI=E*+I)IE+


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'he usua# ob*ective of co##ege or universprovide educationa# services inc#uding teach

research 'hey may be pub#ic, prot-oriented, annonprot institutions )t provides their servicebases of socia# desirabi#ity and nance them, apart, without reference to those receiving the be


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:. :O%N FUND+ @ are used to account for resources that aavai#ab#e for making #oans to students, facu#ty and sta


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L ENDO4(EN) %ND +I(I:%* FUND+ @ are used to acc

resources where the outside donor has specied that theis to remain intact in perpetuity 'he principa# is investedincome from which may be e"pended or added to the pri

a. )E*( ENDO4(EN) FUND+ @ are simi#ar to endofunds, e"cept that after a specied period of time has pacondition has been fu###ed, the governing body may e"ppart of the principa# as #ong as in accordance with the prothe endowment

'. AU%+I < ENDO4(EN) FUND+ @ function as endow


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but consist of resources that are set aside by the goverrather than by an outside donor

. %NNUI)> %ND :IFE INCO(E FUND+ @ annuity funds account for resources given to co##ege or universityprovision that specied peso amounts wi## be paid to individua#s over a specied period of time

2ife income funds are used to account for resources thato the institution with the provision that the income earassets wi## be paid to a designated individua# over #ifetime


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0sed to account resources he#d by co##ege or univers

custodian for student, facu#ty, and sta

K P#ant fund


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P#ant funds, in genera#, are funds used forconstruction, renovation, and ac6uisition of Assets

'3P. O P2AN' 0N5


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0ne"pended p#ant fund- used to account for the ac6construction of property, p#ant and e6uipment

(enewa# and rep#acement p#ant fund- used to accounresources that are set aside for the renewa# or rep#acthe e"isting property, p#ant and e6uipment

'3P. O P2AN' 0N5


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(etirement of indebtedness p#ant fund- usedaccount for resources set aside for debt servdebt retirements re#ated to property, p#ant ae6uipment

)nvestment in p#ant fund- used to account foproperty, p#ant and e6uipment and #iabi#itiesre#ated to amount e"pended for p#ant assets

Iourna# entries

A t k ith f i # f PR; ;;; i i d f t t t


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A stock with a fair va#ue of PR;,;;; is received from an art patron to

art ga##ery addition

)nvestments R;,;;;

(evenue-'emporari#y (estricted

/ontributions R;,;;;

1ooks appraised at PL;,;;; is donated to the 0niversity 'he 0niver

po#icy of recording contributed co##ection

2ibrary 1ooks L;,;;;

(evenue- 0nrestricted /ontributions L;,;;;

Iourna# entries

A PQ;; ;;; b d i #d t f # t th t ti


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An PQ;;,;;; bond is so#d at face va#ue to nance the construction o

bui#ding

/ash Q;;,;;;

1onds Payab#e Q;;,;;;

arnings received on investments are restricted for

/ash


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/onstruction in Progress :;;,;;;

/ontracts Payab#e :;;,;;;

/onstruction of schoo# bui#ding is comp#eted at an additiona# cost ofis paid in fu##

/onstruction in Progress K;,;;;

/ontracts Payab#e :;;,;;; /ash Q;,;;;

1ui#ding Q;,;;;

/onstruction in Progress Q;,;;;

Iourna# entries 'he cost of constructing an art ga##ery tota#s P:


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1ui#ding :


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1ui#ding repairs of P


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Iourna# entries

/#osing entries are prepared for the unrestricted net assets


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/#osing entries are prepared for the unrestricted net assets

(ec#assication-)n-0nrestricted .atisfaction of P#antAc6uisition (estriction :


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/#osing entries are prepared for the temporari#y (estricted net asset

'emporari#y (estricted Net Assets J:;,;;;(evenue-'emporari#y (estricted

/ontributions R;,;;;

(evenue-'emporari#y (estricted Other )nvestment

)ncome


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@ it inc#udes tuition and fees, unrestricted gifts, gwe## as unrestricted income earned from unr

resources )t a#so inc#udes unrestricted income ea

endowment and simi#ar funds, but it does not incapita# gains of endowment funds /apita# g#osses from endowment fund investments typi

accounted for in those funds

+%(&:E BOU*N%: EN)*IE+ FO* )?E UN*E+)*IC)ED CU**EN) F


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+%(&:E BOU*N%: EN)*IE+ FO* )?E UN*E+)*IC)ED CU**EN


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+%(&:E BOU*N%: EN)*IE+ FO* )?E UN*E+)*IC)ED CU**ENFUND


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+%(&:E BOU*N%: EN)*IE+ FO* )?E UN*E+)*IC)ED CU**EN


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*e$ene of *estricted Crrent FndGrop


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)t is recognized to the e"tent that such funds are

e"pended during the period for the specied pur

- 'he timing of revenue recognition coincided withremova# of donor restrictions 'hus the revenue of

restricted funds for the period is e6ua# to current refund e"penditures for the period

+%(&:E BOU*N%: EN)*IE+

J A donor-restricted cash contribution received to assist in #ibroperations, P;,;;;


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/ash ;;;;

(evenue-'emporari#y(estricted /ontributions ;;;;

: ndowment income PQ;,;;; is restricted to student aid activ

/ash Q;;;;

(evenue-'emporari#y (estricted

ndowment )ncome Q;;;;

L Of the e"penses, a## but P;;; are paid> or #ibrary- PKor student aid- PK,;;;

"penses-Academic support K;;;

"penses .tudent aid K;;;


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"penses-.tudent aid K;;;

/ash KR;;

Accounts Payab#e ;;;

'emporari#y (estricted (evenue PL,;;; are rec#assiedunrestricted when donor specications are met

(ec#assication Out-'emp (estricted-

.atisfaction of program restriction L;;;

(ec#assication )n-0nrestricted

.atisfaction of ro ram restriction L;;;


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+overnment +rants (efundab#e J;;;;;

K "penses for research pro*ect tota#ed P


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+rants and /ontracts


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(evenue-'emp (estricted contributions ;;;;

(evenue-ndowment )ncome Q;;;

(ec#assication Out-'emp (estricted

.atisfaction of program restriction

'emporari#y (estricted Net assets


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!ospita#s and Other !ea#th organization


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Organized as> Not for Prot ntities

+overnment ntities

Private 1usiness nterprise

!ospita#s and Other !ea#th /arorganization


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Provider>

/#inics

!ospita#s

+overnment Owned hea#th care ntities

Nursing !omes that Provide !ea#th /are



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*e$ene and Gains @ (evenue is reported in the perio

services are rendered

Operating revenues consist ofpatient service revenupremium fees revenue and other operating reven



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Patient .ervice (evenue @ inc#ude room and board, nurs

and other professiona# services5eductions from revenue>

a& /ourtesy a##owances @ discount for doctors and em

b& /ontractua# ad*ustment @ discount arranged with Lr

payors that fre6uent#y have agreement to reimburs

than estab#ish rates

S/harity /are @ service provided of charge to 6ua#ify unhospita#?s charity care po#icy



121/174

Premium fees $Aka subscriber fees or capitation fee& @ r

agreement under which a hospita# provides any necessservice $perhaps from contractua##y estab#ished #ist of s

a specic fees

Other Operating (evenues @ this are revenue from serv

provided to patients other than for hea#th care revenueand service provided to non patients $eg (enta#s of ho

space, proceeds from cafeteria&

/#assication of Operating "p

Operating e"penses of hospita#s are reported on an accd ## i # d


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and norma##y inc#ude>

unctiona# categories for nursing services $medica# aintensive care, nurseries, operating rooms&

Other professiona# services $#aboratories, radio#ogy&

+enera# services $housekeeping, maintenance&

isca# .ervices $accounting, cashier&

Administrative services $personne#, purchasing&

Provision for depreciation and for bad debts

a#practice insurance "pense, if not a#ready a##ocat


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1ad 5ebts vs /harity /are

edica# a#practice /#aims


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edica# a#practice - is professiona# neg#igenceby act by a hea#th care providerin which the treatment provid

be#ow the accepted standard of practice in the medica#

and causes in*uryor death to the patient, with most casinvo#ving medica# error

http://en.wikipedia.org/wiki/Professional_negligencehttp://en.wikipedia.org/wiki/Health_care_providerhttp://en.wikipedia.org/wiki/Health_care_providerhttp://en.wikipedia.org/wiki/Injuryhttp://en.wikipedia.org/wiki/Patienthttp://en.wikipedia.org/wiki/Medical_errorhttp://en.wikipedia.org/wiki/Medical_errorhttp://en.wikipedia.org/wiki/Patienthttp://en.wikipedia.org/wiki/Injuryhttp://en.wikipedia.org/wiki/Health_care_providerhttp://en.wikipedia.org/wiki/Health_care_providerhttp://en.wikipedia.org/wiki/Professional_negligence


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ntries>

(edical (alpractice Costs """Cas, """

$record payment of insurance premium&

(edical (alpractice Costs """

Est. %ddtnl (alpractice :ia'. 4""

$amount estimated c#aim costs for the period not cthe insurance arrangement&



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(edical (alpractice Costs """

Est. (alpractice :ia' """$to record the estimated c#aims costs and #iabi#ity&

Cas,-:imited in Use nder

(alpractice Fnding arrangements """

Cas, """$to record contribution to trustee&


127/174


128/174


129/174


130/174


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+tatement of Financial &osition

)t presents the nancia# position of the organization at a certain d


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)t presents the nancia# position of the organization at a certain dba#ance sheet date& )t is a too# to eva#uate the resource contro##ed

#i6uidity and stabi#ity of the organization?s nancia# standin


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134/174


135/174

+tatement of Cas, Flo5

'he statement of cash Eow a#so ca##ed B.tatement


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'he statement of cash Eow, a#so ca##ed .tatementand PaymentsC provides a summary of avai#ab#e cas

during the accounting period )t a#so shows the informethods of nancing activities and use and inves

resources during the period


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)##ustrative entries

J +ross charges to patients are for> 5ai#y patient servic


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J +ross charges to patients are for> 5ai#y patient servicPL,:;;,;;;T Other nursing services P

Accounts receivab#e


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: stimates are made for> /ontractua# ad*ustments PLQ0nco##ectib#es P::,;;;

I>

Provision for bad debts ::,;;;

/ontractua# Ad*ustment LQ;,;;;

A##owance for unco##ectib#e receivab#e

And third party contractua# ad*ustment ;:,;;;


L An ana#ysis of A( shows> /ash co##ected PL Q;; ;;;T


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L An ana#ysis of A( shows> /ash co##ected PL,Q;;,;;;T ad*ustment with third party payors P:;;,;;;

I>

/ash L,Q;;,;;;

A##owance for unco##ectib#e receivab#e

And third party contractua# ad*ustment :R;,;;;

Accounts receivab#e ,;R;,;;;


'he hospita# determined that P:;;,;;; of the service


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'he hospita# determined that P:;;,;;; of the servicepatient who met hospita# criteria for charity care

I>

/harity services :;;,;;;

Accounts receivab#e :;;,;;;



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)nventories ;;,;;;

/ash KR;,;;;

Accounts Payab#e J;,;;;


K 5rug and supp#ies costing P:;,;;; are re6uisitioned


143/174

g pp g , 6

I>

5rugs and supp#ies e"pense :;,;;;

)nventories :;,;;;


.a#aries and wages amounted to PL,;;;,;;; of whic


144/174

gis paid

I>

.a#aries, Dages and benets L,;;;,;;;

/ash :,R


145/174


146/174


J; 0nrestricted earnings from #ong term investment to


147/174

P

/ash


148/174

payab#e P:;;,;;;T )nterest PKK,;;;

I>

2oans payab#e Q;,;;;

Notes payab#e :;;,;;;

)nterest e"pense KK,;;;

/ash LK,;;;


J: A donor promised to give P


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four years

I>

/ontribution receivab#e JK


150/174


J 6uipment costing PJJ;,;;; was purchased for cas


151/174

I>

Property and e6uipment JJ;,;;;

/ash JJ;,;;;


J


152/174

I>

5epreciation e"pense ;;,;;;

Accumu#ated depreciation ;;,;;;


JK'he current portion of #ong term debt was rec#assie1onds Payab#e P


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1onds Payab#e P

1onds Payab#e


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PJ,;;;T Other professiona# medica# services PL,;;;

I>

Dages, .a#aries, and 1enets :;,;;;

Other Operating (evenues- 0nrestricted

/ontributions :;,;;


155/174


JR A ma#practice se#f-insurance trust at 15O is increasP:L ;;;


156/174

P:L,;;;

I>

/ash #imited in use under a#practice

unding Agreement :L;,;;;

/ash :L;,;;;


:; 'hird-party payor reimbursements of P:


157/174

aside for PP rep#acement

I>

/ash #imited in use by agreement with

'hird-party payors for PP :


158/174

of the student nursing unit

I>

/ash


159/174

restricted for cancer research

I>

/ash


160/174

secu es as a pu e e do e

I>

/ash


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I>

ndowment )nvestment


162/174

y p

I>

(ec#assication Out- 'emporari#y (estricted

-.atiscation of time restriction J


163/174

e6uipment

I>

/ash :;;,;;;

/ontributions (eceivab#eJ;;,;;;

Other Operating (evenues-

'emporari#y (estricted /ontributions L;;,;;;


: Operating room e6uipment were purchased 'he hoto re#ease the donor restriction over the usefu# #ife of th


164/174

I>

PP :;;,;;;

/ash :;;,;;;


:Q 'he rst year depreciation on the above operating ewas recorded


165/174

I>

5epreciation "pense ;,;;;

Accumu#ated 5epreciation ;,;;;


:R 'he e"piration of the donor restriction on P#ant Asset by rec#assifying from temporari#y restricted to unrestricte


166/174

I>

(ec#assication Out- 'emporari#y (estricted

-.atisfaction of P#ant Asset ;,;;;

(ec#assication )n-

0nrestricted .atisfaction of P#ant Asset ;,;;;


L; A P;;,;;; grant from a #oca# manufacturer to be upatient nutritiona# study 'he resu#t of the study wi## be


167/174

educate the pub#ic, not for the benet of the donor

I>

/ash ;;,;;;

Other Nonoperating (evenues-

'emporari#y (estricted contributions ;;,;


LJ "penses were incurred for the patient nutritiona# study as fo##ows> .a#aries5rugs and .upp#ies PJ;,;;;T Professiona# ee PJ

Dages .a#aries and 1enets :< ;;;


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Dages, .a#aries and 1enets :

Nursing .ervices J,,;;;

Other Professiona# .ervices J,:;,;;;


169/174

+enera# .ervices RR


170/174

(ec#assication )n- 0nrestricted satisfactionOf time restriction J


171/174

Of e6uipment ac6uisition restrictions ;,;;;(ec#assication )n- 0nrestricted satisfaction

Of time restriction J


172/174

NE4:IFE ?O+&I)%:+)%)E(EN) OF %C)I=I)IE+

For t,e 1ear ended Decem'er 02 70

*e$enes2 gains2 and ot,er spport6

'emporary Permanent#y

0nrestricted (estricted (estricted

Patient service revenue-net of ad* P :; ;;; P - P -


173/174

Patient service revenue net of ad* P,:;,;;; P P

Other operating (evenue :::,;;;


174/174

Administrative .ervices RJ,;;;

'ota# "penses and #osses

npo final ppt

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