For more than 60 years, Accounting for Governmental & Nonprofit Entities has been the leader in the market. It is a comprehensive governmental and not-for-profit accounting text written for students who will be auditing and working in public and not-for- profit sector entities. The current author team brings to this edition their extensive experience teaching government and not-for-profit courses as well as insights gained from their professional experience, scholarly writing, and professional activities. The result is a relevant and accurate text that includes the most effective instructional tools.

• Dr. Patton regularly speaks to accounting professionals on state and local governmental accounting topics.
• This text allows an instructor
  to tailor the course to meet his or her course objectives.
• Like all accounting programs, there are certain guidelines and principles an organization and entity must follow.
• Governments treat our money in a distinctive way—they’re not trying to make a profit.
• The CAFR can include overall financial data as well as information on specific funds and reports the results of the period in question, often the financial year.

This problem includes
assignments for four governmental funds
and an enterprise fund. Assignments incorporate what
students have learned in Chapters
3, 4, 5, 6, 7, 9 and 10 into one problem—going from budgetary accounting to the preparation
of governmental fund, enterprise fund, and government-wide financial statements. Although most of this text (Chapters 2 through 10) is devoted to state and local
government accounting, we provide extensive coverage
of the unique aspects of accounting and financial reporting
for the federal
government and nonprofit
entities. In Chapter 12 (federal
government), we cite specific references
to the government’s Standard
General Ledger.

ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ENTITIES

Governments use modified accrual accounting for their statements and include reconciliations explaining how they made the switch from cash-basis accounting (typically used throughout the year) to the modified accrual basis they report in. She received a Bachelor of Arts degree in English Literature with a Concentration in Accounting from the University of Cincinnati. For several years, she was the principal author of two PPC Thomson practitioner guides on governmental accounting and financial reporting—Preparing Governmental Financial Statements under GASBS No. 34 and Governmental Financial Statement Illustrations and Trends. Governmental accounting is generally taught after students
have learned the theory of accrual accounting and the journal entries
needed to record
accrual-related transactions and events. Because
of this, some students have difficulty grasping both the concepts underlying the modified accrual
basis/current financial resources measurement focus
used in governmental-type funds and the accounting and financial reporting
implications. Therefore, Chapter 2 and Chapter 4 introduce the topic,
and Chapter 5 reinforces and expands upon the earlier discussion.

• Every chapter opens with a grid that identifies each learning objective
  for the chapter, the related pages, eLecture
  and Guided Example videos, and end-of-chapter assignments.
• Don’t forget, though, that a surplus is not a profit, nor is a deficit a loss—governments aren’t in the business of hoarding money (nor are they “in business” at all, as it were).
• We make accessibility and adhering to WCAG AA guidelines a part of our day-to-day development efforts and product roadmaps.
• Furthermore, the Internet is just a new medium for conducting business across the globe.
• Make data-driven decisions to drive reader engagement, subscriptions, and campaigns.
• With the amount of money we pay in taxes each year, it is madness to not look at a governmental financial statement just as you would for any other substantial investment.

Like all accounting programs, there are certain guidelines and principles an organization and entity must follow. Both nonprofits and government agencies must follow GAAP, the Generally Accepted Accounting Principles. GAAP’s main objective is to ensure that financial information is reported on effectively and efficiently. This is done through the GAAP’s set of principles, standards, and procedures that aim to help to standardize accounting across the industry and regardless of for-profit, NPO, or government status. Government and nonprofit accounting are often lumped together as they both use fund accounting principles.

Learning Solutions

We typically see this occur with individuals who have moved recently or individuals using a school address instead of a home address. This text allows an instructor
to tailor the course to meet his or her course objectives. An instructor has
flexibility in choosing
both the topics that are covered and the amount of time devoted to a particular topic. We make accessibility and adhering to WCAG AA guidelines a part of our day-to-day development efforts and product roadmaps. Reduce course material costs for your students while still providing full access to everything they need to be successful.

Using real data from the Federal
Audit Clearinghouse, students explore these issues in Excel using
descriptive statistics and trending techniques. After your review of a NBO’s financial statements, it is essential to determine whether you feel that the organization is treating your money prudently. If you find a nonprofit organization governmental accounting with exorbitant operating expenses, don’t give it your money. In the case of government, hold your politicians and governmental employees responsible for their actions. Keeping an accounting text up-to-date can be challenging because accounting
standards-setters are invariably working on new standards while the text is being written.

Students

Financial statements, governmental or nonprofit, can typically be found on the organization’s website or by calling and requesting a copy. He has published articles in the Accounting Review, Accounting Horizons, the Journal of Accounting and Public Policy, and the Journal of Public Budgeting, Accounting, and Financial Management, among others. Dr. Patton regularly speaks to accounting professionals on state and local governmental accounting topics. Spreading awareness is the only way to make an impact in any large measure, so share what you know about these financial statements with others.