FAR - NFP - Colleges & universities

Question 1

GAAP for Colleges & Universities

Answer 1

NFP

• Non-gov’t
• FASB

Public University

• Gov’t
• GASB

Question 2

Revenues

Answer 2

Tuition revenues recorded @ gross (less any tuition refunds) and reported net of uncollectible accts & scholarships allowances

Question 3

Expenses

Answer 3

Scholarship Allowances: awards to students cover tuition, pell grants, “reduction in charges” and don’t involve actual payment of resources

Scholarship Expense: involve actual expenditure of resources

Tuition waivers ( to employees) = expenses

Question 4

Grant Revenues

Gov’t Colleges/Universities

Answer 4

Government C&U:

Operating grants, including state appropriations, & non-capital gifts reported as NON-OPERATING revenues

• operating grants are contracts (grantor expects something in return)
• Capital grants/gifts reported after nonoperating revenues (expenses)

Question 5

Grant Revenues

Private Colleges/Universities

Answer 5

Operating Revenues (look for restrictions if any for proper net asset section)

Question 6

Auxiliary Enterprises

Answer 6

Provide goods/service not directly related to mission of colleges/universities

• residence halls
• food service
• bookstore
• parking

Auxiliary rev/exp are aggregated, reported as single line items in operating section

Question 7

Financials

Answer 7

NFP:

1) Balance Sheet
2) Statement of Activities
3) Statement of CFs

Public:

1) Statement of Net Position
2) Statement of Revenues, Expenses, & Changes in Net Position
3) Statement of CFs

Question 8

Equity

Answer 8

NFP:

1) Unrestricted N/A
2) Temp Rest. N/A
3) Perm. Rest. N/A

Public:

1) Net invest. in Capital
2) Restricted Net Position
3) Unrestricted Net Position

Question 9

Fund Types

Answer 9

1) Current Funds
2) Plant Funds
3) Trust/Agency Funds

Note: Financial Reporting = entity-wide

*fund-level reporting is NOT required

Question 10

Current Funds

Answer 10

• Unrestricted

- Restricted (externally restricted for current operating purposes)

Question 11

Plant Funds

Answer 11

1) unexpended plant funds (financial resources for acquisition of new assets)
2) plant funds for renewals/replacements (resources for renovations)
3) plant funds for retirement of indebtedness (resources for debt service)
4) Investment in plant (record fixed assets & long-term debt)

Question 12

Trust & Agency Funds

Answer 12

• Loan funds: loans for students, faculty, staff
• Endowment funds: permanent/term endowments from gifts
• Annuity & Life Income Funds

Question 13

Bequest revenues

Answer 13

disclosed and not recorded as revenue