Description
Standards for Excellence 3.0
26 Financial Budgeting, Reporting and Monitoring Part 2: Financial Reporting 6
Introduction 6
26.1 Setting up an Accounting System 7
26.1.1 Selecting an accounting method and system 7
26.1.2 Cash vs. accrual accounting methods 7
26.2 Financial Statements 8
26.2.1 Statement of Functional Expenses 9
26.2.2 Statement of Financial Position 10
26.2.3 Statement of Activities 10
26.2.4 Statement of Cash Flows 10
26.2.5 Form 990 11
26.3 Accounting Standards for Nonprofits 11
26.3.1 Accounting standards on liquidity 12
26.3.2 Restricted vs. unrestricted funding under FASB 13
Selected Resources for Financial Budgeting, Reporting, and Monitoring: Financial Reporting 13
Attachments 14
Attachment 26A: Sample Board Review of Form 990 Policy 15
Attachment 26B: Form 990 Public Relations Checklist for 501(c)(3) Organizations 16
Attachment 26C: Effective Fiscal Management 23
Attachment 26D: Sample Section of Board Minutes Reflecting Review of Percentages Spent on Program, Administration & Fundraising 34
Attachment 26E: Independent Nonprofit Auditor Policy 35
Attachment 26F: Sample Request for Proposal Letter to send to Potential Auditor 36
Attachment 26G: Sample Financial Statements 37
