ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st

Semester AY 2014-2015
ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATION
What is a not-for-proft organization?

A not-for-proft organization is an entity tat is !"erate# $!r te %ene&t !$
s!'iety as a (!)e rater tan $!r te %ene&t !$ an in#i*i#+a) "r!"riet!r !r
a ,r!+" !$ "artners !r sare!)#ers- A n!t-$!r-"r!&t !r,ani.ati!n stri*es !n)y
t! !%tain re*en+e s+/'ient t! '!*er its e0"enses- T+s1 te '!n'e"t !$
in'!me is n!t meanin,$+)- N!t-$!r-"r!&t !r,ani.ati!ns '!nstit+te a si,ni&'ant
se,ment !$ !+r s!'iety- S!me e0am")es are:
1- 2!)+ntary ea)t an# (e)$are !r,ani.ati!ns:
2- S'!!)s1 '!))e,es an# +ni*ersities
3- 3!s"ita)s
4- C!!"erati*es
5- 4a%!r +ni!ns
5- 6er$!rmin, arts !r,ani.ati!ns
7- 7!+n#ati!ns
8- Re)i,i!+s !r,ani.ati!ns
9- C!+ntry ')+%s
10- 6r!$essi!na) ass!'iati!ns
FINANCIAL REPORT FOR NOT !FOR- PROFIT ORGANIZATION
P"rpos# of Finan$ia% tat#&#nts
Te "rimary "+r"!se !$ &nan'ia) statements is t! "r!*i#e re)e*ant
in$!rmati!n t! meet te '!mm!n interests !$ #!n!rs1 mem%ers1 're#it!rs an#
!ters (! "r!*i#e res!+r'es t! n!t-$!r-"r!&t !r,ani.ati!ns- T!se e0terna)
+sers !$ &nan'ia) statements a*e '!mm!n interests in assessin,:
a- Te ser*i'es an !r,ani.ati!n "r!*i#es an# its a%i)ity t! '!ntin+e t!
"r!*i#e t!se ser*i'es an#
%- 3!( mana,ers #is'ar,e teir ste(ar#si" res"!nsi%i)ities an# !ter
as"e'ts !$ teir "er$!rman'e-
M!re s"e'i&'a))y1 te "+r"!se !$ &nan'ia) statements1 in')+#in,
a''!m"anyin, n!tes1 is t! "r!*i#e in$!rmati!n a%!+t:

a- Te am!+nt an# nat+re !$ an !r,ani.ati!n:s assets1 )ia%i)ities an#
net assets
%- Te e;e'ts !$ transa'ti!ns an# !ter e*ents an# 'ir'+mstan'es tat
'an,e te am!+nt an# nat+re !$ net assets
'- Te am!+nt an# <in#s !$ in=!(s an# !+t=!(s !$ e'!n!mi' res!+r'es
#+rin, a "eri!# an# te re)ati!n %et(een in=!( an# !+t=!(
>+ne 211 2014 6a,e 1
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
#- 3!( an !r,ani.ati!n !%tains an# s"en#s 'as1 its %!rr!(in, an#
re"ayment !$ %!rr!(in, an# !ter $a't!rs tat may a;e'ts its
)i?+i#ity
e- Te ser*i'e e;!rts !$ an !r,ani.ati!n
'( TATE)ENT OF FINANCIAL POITION
Tis statement "r!*i#es re)e*ant in$!rmati!n a%!+t te )i?+i#ity1
&nan'ia) =e0i%i)ity an# interre)ati!nsi" !$ an !r,ani.ati!n:s asset an#
)ia%i)ities in !r#er t! )et te e0terna) +sers !$ s+' %e a%)e t! assess
te !r,ani.ati!n:s a%i)ity t! '!ntin+e "r!*i#in, te ser*i'es1 te
!r,ani.ati!ns )i?+i#ity1 &nan'ia) =e0i%i)ity1 a%i)ity t! meet !%)i,ati!ns1 an#
nee#s $!r e0terna) &nan'in,-
A statement !$ &nan'ia) "!siti!n sa)) $!'+s !n te !r,ani.ati!n as a (!)e
an# sa)) re"!rt te am!+nts !$ its t!ta) assets1 )ia%i)ities1 an# net assets-
A statement !$ &nan'ia) "!siti!n1 in')+#in, a''!m"anyin, n!tes t! &nan'ia)
statements1 "r!*i#es re)e*ant in$!rmati!n a%!+t )i?+i#ity1 &nan'ia)
=e0i%i)ity1 an# te interre)ati!nsi" !$ an !r,ani.ati!n@s assets an# )ia%i)ities-
Tat in$!rmati!n ,enera))y is "r!*i#e# %y a,,re,atin, assets an# )ia%i)ities
tat "!ssess simi)ar 'ara'teristi's int! reas!na%)y !m!,ene!+s ,r!+"s-
7!r e0am")e1 entities ,enera))y re"!rt in#i*i#+a) items !$ assets in
!m!,ene!+s ,r!+"s1 s+' as 'as an# 'as e?+i*a)entsA a''!+nts an#
n!tes re'ei*a%)e $r!m "atients1 st+#ents1 mem%ers1 an# !ter re'i"ients !$
ser*i'esA in*ent!ries !$ materia)s an# s+"")iesA #e"!sits an# "re"ayments $!r
rent1 ins+ran'e1 an# !ter ser*i'esA mar<eta%)e se'+rities an# !ter
in*estment assets e)# $!r )!n,-term "+r"!sesA an# )an#1 %+i)#in,s1
e?+i"ment1 an# !ter )!n,-)i*e# assets +se# t! "r!*i#e ,!!#s an# ser*i'es-
Cas !r !ter assets re'ei*e# (it a *onor-i&pos#* r#stri$tion tat )imits
teir +se t! )!n,-term "+r"!ses s!+)# n!t %e ')assi&e# (it 'as !r !ter
assets tat are +nrestri'te# an# a*ai)a%)e $!r '+rrent +se-
A statement !$ &nan'ia) "!siti!n "r!*i#e# %y a n!t-$!r-"r!&t !r,ani.ati!n
sa)) re"!rt te
am!+nts $!r ea' !$ tree ')asses !$ net assetsBp#r&an#nt%+ r#stri$t#*
n#t ass#ts,
t#&porari%+ r#stri$t#* n#t ass#ts1 an# "nr#stri$t#* n#t ass#tsB%ase#
!n te e0isten'e !r a%sen'e !$ #!n!r-im"!se# restri'ti!ns-
In$!rmati!n a%!+t te nat+re an# am!+nts !$ #i;erent ty"es !$ "ermanent
restri'ti!ns !r tem"!rary restri'ti!ns sa)) %e "r!*i#e# eiter %y re"!rtin,
teir am!+nts !n te $a'e !$ te statement !r %y in')+#in, re)e*ant #etai)s in
>+ne 211 2014 6a,e 2
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
n!tes t! &nan'ia) statements- Se"arate )ine items may%e re"!rte# (itin
"ermanent restri'ti!ns $!r !)#in, !$ :
a- assets1 s+' as )an# !r (!r<s !$ art1 #!nate# (it sti"+)ati!ns tat tey %e
+se# $!r a s"e'i&e# "+r"!se1 %e "reser*e# an# n!t %e s!)# !rA
%- assets #!nate# (it sti"+)ati!ns tat tey %e in*este# t! "r!*i#e
"ermanent s!+r'e !$ in'!me s+' as ,i$ts tat 'reate "ermanent en#!(ment
$+n#s-
Se"arate )ine items may %e re"!rte# (itin tem"!rari)y restri'te# net assets
!r in n!tes t! &nan'ia) statements t! #istin,+is %et(een tem"!rary
restri'ti!ns $!r:
a- s+""!rt !$ "arti'+)ar !"eratin, a'ti*ities1
%- in*estment $!r a s"e'i&e# terms1
'- +se in s"e'i&e# $+t+re "eri!#1 !r
#- a'?+isiti!n !$ )!n,-)i*e# assets-
C!n!rs@ tem"!rary restri'ti!ns may re?+ire tat res!+r'es %e +se# in a
)ater "eri!# !r a$ter a s"e'i&e# #ate Dtime restri'ti!nsE1 !r tat res!+r'es %e
+se# $!r a s"e'i&e# "+r"!se D"+r"!se restri'ti!nsE1 !r %!t- 7!r e0am")e1
,i$ts !$ 'as an# !ter assets (it sti"+)ati!ns tat tey %e in*este# t!
"r!*i#e a s!+r'e !$ in'!me $!r a s"e'i&e# term an# tat te in'!me %e +se#
$!r a s"e'i&e# "+r"!se are %!t time an# "+r"!se restri'te#- T!se ,i$ts
!$ten are 'a))e# term endowments-
Unrestri'te# net assets ,enera))y res+)t $r!m re*en+es $r!m "r!*i#in,
ser*i'es1 "r!#+'in, an# #e)i*erin, ,!!#s1 re'ei*in, +nrestri'te#
'!ntri%+ti!ns1 an# re'ei*in, #i*i#en#s !r interest $r!m in*estin, in in'!me-
"r!#+'in, assets1 )ess e0"enses in'+rre# in "r!*i#in, ser*i'es1 "r!#+'in,
an# #e)i*erin, ,!!#s1 raisin, '!ntri%+ti!ns1 an# "er$!rmin, a#ministrati*e
$+n'ti!ns-
Te !n)y )imits !n te +se !$ +nrestri'te# net assets are te %r!a# )imits
res+)tin, $r!m te nat+re !$ te !r,ani.ati!n1 te en*ir!nment in (i' it
!"erates1 an# te "+r"!ses s"e'i&e# in its arti')es !$ in'!r"!rati!n !r %y)a(s
an# )imits res+)tin, $r!m '!ntra't+a) a,reements (it s+"")iers1 're#it!rs1
an# !ters entere# int! %y te !r,ani.ati!n in te '!+rse !$ its %+siness-
In$!rmati!n a%!+t t!se '!ntra't+a) )imits tat are si,ni&'ant1 in')+#in, te
e0isten'e !$ )!an '!*enants1 ,enera))y is "r!*i#e# in n!tes t! &nan'ia)
statements- Simi)ar)y1 in$!rmati!n a%!+t se)$-im"!se# )imits tat may %e
+se$+)1 in')+#in, in$!rmati!n a%!+t *!)+ntary res!)+ti!ns %y te ,!*ernin,
%!ar# !$ an !r,ani.ati!n t! #esi,nate a "!rti!n !$ its +nrestri'te# net assets
t! $+n'ti!n as an en#!(ment Ds!metimes 'a))e# a board-designated
>+ne 211 2014 6a,e 3
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
endowmentE1 may %e "r!*i#e# in n!tes t! !r !n te $a'e !$ &nan'ia)
statements-
-( TATE)ENT OF ACTI.ITIE
Tis statement s!(s te re*en+es1 ,ains1 e0"enses an# )!sses - Te
"rimary "+r"!se !$ tis statement is t! "r!*i#e re)e*ant in$!rmati!n a%!+t :
a- te e;e'ts !$ transa'ti!ns an# !ter e*ents an# 'ir'+mstan'es tat
'an,e te am!+nt an# nat+re !$ net asset1
%- te re)ati!nsi"s !$ t!se transa'ti!ns an# !ter e*ents
an# 'ir'+mstan'es t! ea' !ter1 '- !( te !r,ani.ati!n:s res!+r'es are
+se# in "r!*i#in, *ari!+s "r!,rams !r ser*i'es-

Te in$!rmati!n in tis statement +se# (it re)ate# #is')!s+res an#
in$!rmati!n in !ter &nan'ia) statements1 e)"s #!n!rs1 're#it!rs an# !ters
t!
a- e*a)+ate te !r,ani.ati!ns "er$!rman'e #+rin, a "eri!#1
%- assess an !r,ani.ati!n:s ser*i'e e;!rts an# its a%i)ity t! '!ntin+e "r!*i#e
ser*i'es1 an#
'- assess !( an !r,ani.ati!n:s mana,ers a*e #is'ar,e# teir ste(ar#si"
res"!nsi%i)ities an# !ter as"e'ts !$ teir "er$!rman'e-
Tis statement +se te #es'ri"ti*e term - 'an,e in net assets !r 'an,e
ine?+ity !$ te entity as a (!)e-
/( TATE)ENT OF CA0 FLOW
Tis statement "r!*i#es re)e*ant in$!rmati!n a%!+t te 'as re'ei"ts an#
'as "ayments !$ an !r,ani.ati!n #+rin, a "eri!#- A)t!+, tis statement
may %e +sin, eiter !$ te t(! met!#s1 #ire't an# in#ire't-
PROFEIONAL ORGANIZATION
Tere are m!re tan 40 "r!$essi!na) !r,ani.ati!ns a''re#ite# %y te
6r!$essi!na) Re,+)ati!n C!mmissi!n- Tese ass!'iati!ns !r instit+ti!ns a*e
teir ea# !/'es in Metr! Mani)a1 %+t teir 'a"ters are $!+n# a)) !*er te
'!+ntry- Teir !"erati!ns are ,enera))y &nan'e# %y mem%ersi" #+es
tat are "ai# ann+a))y- Sarin, !$ tese mem%ersi" $ees am!n, te
#i;erent 'a"ters1 re,i!na) '!+n'i)s an# ea# !/'e are "r!*i#e# $!r in teir
%y-)a(s- Fi,,er !r,ani.ati!ns a*e esta%)ise# re,i!na) '!+n'i)s (i'
!*ersee te 'a"ters- Ga' !r,ani.ati!n as its !(n missi!n an# *isi!n an#
its a'ti*ities sa)) %e t!(ar#s te attainment !$ tese ,!a)s- Teir !"erati!ns
are 'ara'teri.e# %y a*in, a %!ar# !$ #ire't!rs esta%)isin, te "!)i'ies an#
,+i#e)ines %ase# in te %y-)a(s (is are im")emente# %y means !$ a set
>+ne 211 2014 6a,e 4
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
!$ !/'ers e)e'te# $r!m am!n, te mem%ers !$ te %!ar#- G*ery year
e)e'ti!ns are '!n#+'te# nati!n(i#e- 2ari!+s '!mmittees are 'reate# (it
a 'airman an# mem%ers (! ,i*e teir time an# e;!rt *!)+ntari)y
t! a'ie*e te !%He'ti*es !$ te !r,ani.ati!ns- 7+)) a''r+a) %asis is +se#
(ene*er "ra'ti'a%)e1 #e"re'iati!n is "r!*i#e# %+t is n!t '!nsi#ere# in
#eterminin, te e0'ess !$ re'ei"ts !*er #is%+rsements- T(! <in#s !$ net
assets are '!mm!n)y a''!+nte# $!r1 "nr#stri$t#* !r g#n#ra% an#
r#stri$t#* !r sp#$ia%
net assets- Te s"rea#seet is +se# t! s+mmari.e #ai)y transa'ti!ns in tese
t(! ty"es !$ assets- An +"#ate# )ist !$ mem%ers is a re?+irement $!r te s+re
a''!+ntin, !$ ann+a) #+es in arrears t! s+""!rt te re'ei*a%)e a''!+nts-
C!))e'ti!ns are n!rma))y #!ne %y te 'a"ters an# m!nt)y re"!rts are
"re"are# t! a''!+nt $!r te remittan'es #+e t! te ea# !/'e an# te
re,i!na) '!+n'i)s- Restri'te# net asset are 'reate# e*ery time '!))e'ti!ns
(!+)# in')+#e re'ei"ts $!r s+%s'ri"ti!n t! te "eri!#i' H!+rna) !r $!r te
a##iti!ns !r %etterment !$ te %+i)#in,-
E1UCATIONAL INTITUTION
Te a'ti*ities !$ an e#+'ati!na) instit+ti!n may %e ')assi&e# as :
a- Instr+'ti!na) - in')+#e %!t resi#ent an# e0tensi!n instr+'ti!n1 "+%)i'
ser*i'e1 !r,ani.e# resear'e# an# te !"erati!n !$ )i%raries-
%- A#ministrati*e - a+0i)iary in')+#e sta/n, an# "r!m!ti!n1 re,istrati!n an#
enr!))ment1 !"erati!n !$ te %+siness !/'e1 an# !"erati!n an# maintenan'e
!$ te e#+'ati!na) ")ant
'- A+0i)iary ser*i'es in')+#e te !"erati!n !$ te resi#en'e a))s1 #inin,
r!!ms1 '!))e,e +ni!ns an# %!!<st!res1 ea)t 'enters1 an# at)eti' an#
'+)t+ra) "r!,rams-
Re*en+es in s+""!rt !$ tese #i;erent a'ti*ities are "r!*i#e# %y s+' *arie#
s!+r'es as '!ntri%+ti!ns1 ,!*ernment a""r!"riati!ns1 st+#ent $ees1
en#!(ment in'!me1 an# re*en+es $r!m te sa)e !$ ,!!#s an# ser*i'es-
Tere are si0 maH!r $+n# ,r!+"in,s $!r e#+'ati!na) instit+ti!ns1 name)y:
1- C+rrent $+n#s
2- 4!an $+n#s
3- Gn#!(ment an# !ter n!ne0"en#a%)e $+n#s
4- Ann+ity $+n#s
5- 6)ant $+n#s1 #i*i#e# int! +ne0"en#e# ")ant $+n#s1 retirement !$
in#e%te#ness $+n#s an# an in*estment in ")ant se'ti!n
5- A,en'y $+n#
E2p%ain th# a$$o"nting for not-for-proft organizations(
A''!+ntin, $!r n!t-$!r-"r!&t !r,ani.ati!ns is essentia))y 3f"n*
a$$o"nting4- Tis means tat te interna) a''!+ntin, $!r many n!t-$!r-
>+ne 211 2014 6a,e 5
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
"r!&t !r,ani.ati!ns is te $+n# (i' is an a''!+ntin, entity (it a se)$-
%a)an'in, set !$ a''!+nts re'!r#in, 'as an# !ter &nan'ia) res!+r'es
t!,eter (it re)ate# )ia%i)ities an# 'an,es terein- A''!+ntin, is %ase# !n
FA5 FA ''6, FA ''7, FA '-8 an* AICPA A"*it an* A$$o"nting
G"i*# for h#a%th $ar# organizations(
7+n#s '!mm!n)y +se# %y n!t-$!r-"r!&t !r,ani.ati!ns in')+#e te $!))!(in,:
1-Unrestri'te# $+n# 2- Restri'te# $+n# 3- Gn#!(ment $+n#s 4-
A,en'y $+n#
5- Ann+ity $+n# an# )i$e in'!me $+n# 5- 4!an $+n# 7-
6)ant $+n#
Unr#stri$t#* F"n*9 G#n#ra% F"n*9 C"rr#nt F"n*
Tis is a)s! <n!(n as te ,enera) $+n# (i' in')+#es a)) te assets !$ a n!t-
$!r-"r!&t !r,ani.ati!n tat are a*ai)a%)e $!r +se as a"thoriz#* :+ th#
go;#rning :oar*
an# are n!t restri'te# $!r s"e'i&' "+r"!ses- Te re*en+e an#
,ains !$ +nrestri'te# $+n#s are #eri*e# $r!m a n+m%er !$ s!+r'es- It is +se#
in $+n# a''!+ntin,-
R#stri$t#* F"n*9 R#stri$t#* C"rr#nt F"n*9 G#n#ra% F"n*
Tese are te re'ei"ts !$ res!+r'es tat are t! %e +se# in s"e'ia) a'ti*ities
s+' as "+%)i'ati!n !$ a "eri!#i' H!+rna) !r '!nstr+'ti!n !$ a %+i)#in, $!r te
+nit-
A$$o"nting for $ash $ontri:"tions or *onations
Cas '!ntri%+ti!ns !r #!nati!ns are re"!rte# as r#;#n"# in th# +#ar
r#$#i;#*
e*en t!+, tere are #!n!r-im"!se# +ses !r time restri'ti!ns !n te
#!nati!n-
Te entry $!r te 'as '!ntri%+ti!n !r #!nati!n is:
Cas 000
C!ntri%+ti!ns re*en+e 000
I$ te #!n!r im"!ses +se !r time restri'ti!n1 te 'as '!ntri%+ti!n !r
#!nati!n is re"!rte# as Item"!rary restri'te# re*en+eJ !n te statement !$
a'ti*ities-
A$$o"nting for 3$ontri:"t#* &at#ria%s4 < re'!r#e# at fair ;a%"#
i-e- i$ a !s"ita) re'ei*es $ree #r+,s !r a +ni*ersity re'ei*es $ree !"eratin,
s+"")ies1 te entry is
In*ent!ry 000
C!ntri%+ti!ns re*en+e 000
>+ne 211 2014 6a,e 5
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
A$$o"nting for 3$ontri:"t#* s#r;i$#s4 < C!ntri%+te# ser*i'es are
re'!,ni.e# in te statement !$ a'ti*ities i$ #ith#r !$ te $!))!(in, '!n#iti!ns
is met:
a- Te ser*i'es 'reate !r enan'e a n!n &nan'ia) asset-
%- Te ser*i'es re?+ire s"e'ia)i.e# s<i))s1 are "r!*i#e# %y in#i*i#+a)s
"!ssessin, t!se s<i))s an# (!+)# ty"i'a))y nee# t! %e "+r'ase i$ n!t
"r!*i#e# %y #!nati!ns-
C!ntri%+te# ser*i'es ren#ere# %y s<i))e# in#i*i#+a)s are re'!,ni.e# at
te ,!in, rate $!r '!m"ara%)e em")!yees !r '!ntra't!rs !$ te entity
)ess any mea)s !r !ter )i*in, '!sts a%s!r%e# %y te n!n"r!&t
!r,ani.ati!n-
T! in'rease e0"ense an# in'rease +nrestri'te# re*en+e1 '!ntri%+te#
ser*i'es is re'!r#e# as $!))!(s:
Sa)aries e0"ense 000
C!ntri%+ti!ns re*en+e 000
A$$o"nting for Contri:"t#* fa$i%iti#s < C!ntri%+te# $a'i)ities are
re'!,ni.e# at fair ;a%"# eiter t! an asset !r e0"ense a''!+nt-
7!r e0am")e1 i$ a "ni;#rsit+ re'ei*es a ne( %+i)#in, $r!m a ,ener!+s
%ene$a't!r t! %e +se# as !ne !$ its '!))e,es1 te entry is:
F+i)#in, 000
C!ntri%+ti!ns re*en+e 000
An!ter e0am")e1 a %+i)#in, is +se# %y a +ni*ersity !n a renta) %asis-
3!(e*er1 te !(ner (ai*es renta) "ayment- Tis is re'!r#e# at te $air *a)+e
!$ te renta) as $!))!(s:
Renta) e0"ense 000
C!ntri%+ti!ns re*en+e 000
C%assif$ations of E2p#ns# of a Not-for-proft Organization

1- Progra& s#r;i$#s

Ktese are te !r,ani.ati!ns a'ti*ities tat res+)t in te #istri%+ti!n !$ ,!!#s
an# ser*i'est! %ene&'iaries1 '+st!mers !r mem%ers that f"%f%% th#
p"rpos#s or &ission of th# organization(
-( "pporting #r;i$#s
Ktese are !ter e0"enses tat in')+#e a)) a'ti*ities !$ te !r,ani.ati!n
oth#r than "r!,ram ser*i'es1 i-e- mana,ement an# ,enera) e0"enses1 $+n#
>+ne 211 2014 6a,e 7
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
raisin, an# mem%ersi" #e*e)!"ment a'ti*ities- A%% #2p#ns# !$ a n!n
"r!&t !r,ani.ati!n is re"!rte# as "nr#stri$t#* in te statement !$
a'ti*ities- Tis means tat #2p#ns#s ar# *#*"$t#* on%+ fro&
"nr#stri$t#* r#;#n"#(

What is a r#stri$t#* f"n*?
Tis is +se# t! a''!+nt $!r assets a*ai)a%)e $!r $"rr#nt "s# %+t e0"an#a%)e
!n)y
as a"thoriz#* :+ th# *onor !$ te assets- Te #!n!r may im"!se eiter
I+seJ restri'ti!n !r Itime restri'ti!nJ !r %!t- Assets !$ te restri'te# $+n#
are not *#ri;#* fro& th# op#rations of th# nonproft organization(

E2p%ain #n*o=&#nt of f"n*(

A I"ermanent en#!(ment $+n#J is !ne $!r (i' te "rin'i"a) m+st %e
maintaine#
In*#fnit#%+ in re*en+e "r!#+'in, in*estment- On)y te re*en+e $r!m te
in*estments may %e e0"en#e#- A "ermanent en#!(ment $+n# is a)s! <n!(n
as Ire,+)ar en#!(mentJ- A "ermanent en#!(ment $+n# !r I"ermanent)y
restri'te#J %+t te re*en+e $r!m te $+n# is Item"!rari)y restri'te#J-

A term Ien#!(ment $+n#J is !ne $!r (i' te "rin'i"a) may %e e0"en#e#
a$ter te "assa,e !$ 'ertain "eri!# !r te !''+rren'e !$ an e*ent s"e'i&e# %y
te #!n!r- Te term is Item"!rari)y restri'te#J-

A I?+asi - en#!(ment $+n#J is a $+n# esta%)ise# %y te go;#rning :oar*
!$ te n!n"r!&t !r,ani.ati!n- At te !"ti!n !$ te %!ar#1 te "rin'i"a)
may )ater %e e0"en#e#- A''!r#in,)y1 a ?+asi-en#!(ment $+n# is in')+#e#
!n I+nrestri'te# net assetsJ %e'a+se tis is esta%)ise# +sin, +nrestri'te#
net assets-
Ag#n$+ F"n*
Use# t! a''!+nt $!r assets e)# %y te n!n"r!&t !r,ani.ati!n as $"sto*ian(

G0am")e: A "ni;#rsit+ may a't as '+st!#ian !$ 'as !$ a st+#ent
!r,ani.ati!n- Te +ni*ersity #is%+rses 'as as #ire'te# %y te !/'ers !$ te
st+#ent !r,ani.ati!n-
Un#istri%+te# 'as !$ te st+#ent !r,ani.ati!ns is re"!rte# as %ia:i%it+ !$
te +ni*ersity@s a,en'y $+n# %e'a+se te +ni*ersity as n! e?+ity in te
$+n#-
Ann"it+ F"n*
>+ne 211 2014 6a,e 8
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
Gsta%)ise# (en assets are '!ntri%+te# t! te n!n"r!&t !r,ani.ati!n (it
te sti"+)ati!n tat te !r,ani.ati!n sa)) "ay s"e'i&e# f2#* a&o"nt t! a
#esi,nate# %ene&'iary "eri!#i'a))y #+rin, a s"e'i&e# "eri!# !$ time-

At te en# !$ te s"e'i&e# "eri!# $!r te s"e'i&e# "ayments1 te
+ne0"en#e# assets !$ te ann+ity $+n#are trans$erre# t! te +nrestri'te#
$+n#1 restri'te# $+n# !r en#!(ment $+n# as
instr"$t#*
P#r&an#nt%+ r#stri$t#* n#t ass#ts
I"ermanent)y en#!(ment $+n#J

Un$on*itiona% Pro&is#s Tr#at&#nt
Re"!rte# in th# p#rio* p%#*g#s ar# &a*# n!t in te "eri!# !$ 'as
'!))e'ti!n-

C!ntri%+ti!n (i)) n!t %e re'ei*e# +nti) ne0t year1 te '!ntri%+ti!n (i)) %e
re"!rte# as in'rease in t#&porari%+ r#stri$t#* n#t ass#ts for th#
$"rr#nt +#ar %e'a+se !$ time restri'ti!n-
C!n#iti!na) "r!mise t! ,i*e is '!nsi#ere# "n$on*itiona% i$ te "!ssi%i)ity
tat te '!n#iti!n (i)) n!t %e met is rem!te- Tr#at&#nt of R#
$%assif$ations of N#t ass#ts
G0am")e: In "ri!r year1 a %ene$a't!r ma#e a '!ntri%+ti!n t! a "ri*ate
n!n"r!&t +ni*ersity (it te sti"+)ati!n tat te #!nati!n %e +se# $!r
$a'+)ty tra*e) #+rin, te '+rrent year-

Tis '!ntri%+ti!n is re"!rte# +n#er tem"!rari)y restri'te# net assets in te
"ri!r year-

Len te '!ntri%+ti!n is +se# $!r $a'+)ty tra*e) in te '+rrent year1 it is
re"!rte# as Ire')assi&'ati!nJ in te '+rrent year@s statement !$ a'ti*ities- Re-
')assi&'ati!ns are re"!rte# in te statement !$ a'ti*ities as Inet assets
re)ease# $r!m restri'ti!nsJ-

Tis re')assi&'ati!n is re"!rte# in te '+rrent year as ne,ati*e am!+nt $!r
tem"!rari)y restri'te# net assets an# "!siti*e am!+nt $!r restri'te# net
assets-
Te tra*e) e0"ense is re"!rte# in te '+rrent year@s statement !$ a'ti*ities
as #e#+'ti!n $r!m +nrestri'te# net assets- A)) e0"enses are #e'rease in
+nrestri'te# net assets-
Te +se !$ te '!ntri%+ti!n $!r $a'+)ty tra*e) as n! e;e't !n +nrestri'te# net
assets at te '+rrent year en#%e'a+se te e;e't is !;settin,1 meanin,1
in'rease in +nrestri'te# net assets +"!n re')assi&'ati!n $r!m Item"!rari)y
>+ne 211 2014 6a,e 9
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
restri'te# t! +nrestri'te#J an# #e'rease in +nrestri'te# net assets (en te
'!ntri%+ti!n is +se# !r e0"en#e#-
LOAN FUN1
C!nsist !$ res!+r'es tat are a*ai)a%)e $!r )!ans t! st+#ents-
Ori,inate $r!m ,i$ts1 tey may %e %+i)t +" !*er a "eri!# !$ years $r!m
st+#ent $ees $!r s+' "+r"!se !r $!r trans$ers $r!m en#!(ment $+n# (!se
in'!me is a*ai)a%)e $!r s+' "+r"!se-
Can %e ma#e (it !r (it!+t interest #e"en#in, +"!n te '!n#iti!ns
esta%)ise# %y t!se "r!*i#in, )!an te )!an $+n#-
N!ne0"en#a%)e +n'!))e'ti%)e )!ans1 $+n# a#ministrati*e e0"enses1 an#
)!sses !n te sa)e !$ $+n# in*estments1 an# as a res+)t !$ 're#its arisin, $r!m
interest !n )!ans1 in'!me $r!m $+n# in*estments 1 an# ,ains !n sa)e !$ $+n
in*estment-
T ransa'ti!ns re)ate# t! )!an !$ +ni*ersities:
1- Re'ei"t !$ 'as ,i$t t! %e +se# $!r )!ans t! st+#ents1 6501000-
Cas 501000
4!an $+n# net assets 501000
2- 6+r'ase !$ se'+rities $!r 6251000 (i' in')+#es a''r+e# interest !$ 6500-
-
In*estment 251000
A''r+e# interest 500
Cas 251500
3-4!ans t! st+#ents1 6201000-
N!tes re'ei*a%)e 201000
Cas 201000
4- C!))e'ti!ns !$ interest !n in*estments1 611500
-
Cas 11500
A''r+e# interest 500
4!an $+n# net assets 900
8( C!))e'ti!n !$ )!ans (it interest !$ 61501 671550-
Cas 71550
N!tes Re'ei*a%)e 71500
4!an $+n# net assets 150
>+ne 211 2014 6a,e 10
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
>( Un'!))e'ti%)e )!ans (ritten !;1 6300-
4!an $+n# net assets 300
N!tes Re'ei*a%)e 300
EN1OW)ENT AN1 OT0ER NONE?PEN1A5LE FUN1
7!rme# (en 'as !r !ter "r!"erties are trans$erre# t! te instit+ti!n
"r!*i#e# tat !n)y in'!me "r!#+'e# %y s+' res!+r'es 'an %e +se# $!r te
%ene&t !$ te instit+ti!n-
Unrestri'te# en#!(ment is +n#e"en#a%)eA a)t!+, it may 'an,e as a
res+)t !$ te sa)e !$ restri'ti!ns are ")a'e# !n te +se !$ $+n# in'!me %y te
instit+ti!n- In'!me %e'!mes a*ai)a%)e t! te +nrestri'te# '+rrent $+n#-
Restri'te# en#!(ment is (en te +se !$ te $+n# in'!me is )imite# t!
'ertain !%He'ti*es- In'!me is trans$erre# t! te a""r!"riate restri'te# '+rrent
$+n# !r t! te ")ant $+n#-
Gn#!(ments are 'reate# %y trans$er !$ assets #ire't)y t! te instit+ti!n-
7+n#s tem"!rari)y $+n'ti!nin, as an en#!(ment are res!+r'es n!t
'+rrent)y re?+ire# %y +nrestri'te# '+rrent $+n# may %e trans$erre# !+t !$ tis
$+n# t! %e a#ministere# as an en#!(ment +nti) te res!+r'es are re?+ire#
$!r a)ternati*e +se-
In maintainin, a sin,)e set !$ %!!<s $!r te en#!(ment $+n# ,r!+"1
in*estments an# !ter "r!"erty items s!+)# %e i#enti&e# (it s"e'i&'
en#!(ments1 an# se"arate en#!(ment $+n# %a)an'es s!+)# %e re"!rte# $!r
ea' en#!(ment-
Garnin,s #!n:t nee# t! %e re=e'te# !n te %!!<s $!r te en#!(ment $+n#s
tat may %e entere# #ire't)y !n te %!!<s !$ te $+n#s re'ei*in, te
earnin,s-
Transa$tions r#%at#* to #n*o=&#nt f"n*@
1- Re'ei"t !$ 'as $r!m #!n!r in esta%)isment !$ Gn#!(ment 7+n# A1
6110001000- N! restri'ti!ns are ma#e as t! +se !$ en#!(ment in'!me-
Cas
Gn#!(ment 7+n# A
%a)an'e
110001000
110001000
2- Re'ei"t !$ se'+rities $r!m 2 #!n!rs in esta%)isment !$ Gn#!(ment 7+n#s
F an# C- Gn#!(ment 7+n# F-101000 sares !$ M C!- !r#inary sares1 *a)+e !n
#ate !$ trans$er is 67151000- Gn#!(ment 7+n# C-21500 sares !$ Y C!-
"re$eren'e sares1 *a)+e !n #ate !$ trans$er 62451000- N! restri'ti!ns are
ma#e as t! +se !$ en#!(ment in'!me-
>+ne 211 2014 6a,e 11
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
In*estments-!r#inary sares
In*estments-"re$eren'e
sares
Gn#!(ment 7+n# F
%a)an'e
Gn#!(ment 7+n# C
%a)an'e
7151000
2451000
7151000
2451000
3- 6!!)in, !$ Gn#!(ment 7+n#s A1 F1 C- Gn#!(ment $+n# %a)an'es (ere
restate# in terms !$ mar<et *a)+es !$ se'+rities as #ate !$ "!!)in, as $!))!(s:
Or#inary sares mar<et *a)+e1 67501000 an# 6re$eren'e sares mar<et
*a)+e-62501000-
6!!)e# Cas
6!!)e# in*estments- !r#inary
sares
6!!)e# in*estments- "re$eren'e
sares
Cas
In*estments-!r#inary sares
In*estments-"re$eren'e
sares
Gn#!(ment 7+n# F %a)an'e
Gn#!(ment 7+n# C %a)an'e
11000100
0

7501000

2501000
110001000
7151000
2451000
351000
51000
4- 6+r'ases !$ 69001000 !$ N C!- %!n#s at a "ri'e !$ 105-
6!!)e# in*estments- %!n#s
6!!)e# in*estments- +nam!rti.e#
%!n# "remi+m
6!!)e# Cas
9001000
451000
9451000
5- C!))e'ti!n !$ interest an# #i*i#en#s !n "!!)e# in*estments1 61071500-
6!!)e# Cas
Un#istri%+te# "!!)e#
in'!me
1071500
1071500
5- 6remi+m am!rti.ati!n !n "!!)e# in*estments1 621250-
Un#istri%+te# "!!)e# in'!me
6!!)e# in*estments- +nam!rti.e# %!n#
"remi+m
21500
21500
7- Cistri%+ti!n !$ in'!me !n "!!)e# en#!(ments t! +nrestri'te# an#
restri'te# '+rrent $+n#s: Gn#!(ment 7+n# A: 110001000O210001000 0 1051000
!r 6521500- Gn#!(ment 7+n# F: 7501000O210001000 0 1051000 !r 6301375-
Gn#!(ment 7+n# C: 2501000O210001000 0 1051000 !r 6131125-
Un#istri%+te# "!!)e# in'!me 1051000
>+ne 211 2014 6a,e 12
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
6!!)e# Cas 1051000
8- Sa)e !$ Y C!- "re$eren'e sares $!r 62501000-
6!!)e# Cas
6!!)e# in*estments- "re$eren'e
sares
Gains an# )!sses !n "!!)e#
in*estments
2501000
2501000
101000
9- Re'ei"t !$ ,i$t !$ "r!"erties t! %e +se# as a #!rmit!ry- Net in'!me a$ter
re'!,ni.in, an ann+a) 'ar,e $!r #e"re'iati!n !$ 6101000 is t! %e +se# $!r
'ertain restri'te# "+r"!ses- A""raise# *a)+es !$ "r!"erties !n te #ate !$
,i$t: 4an#- 612510001 F+i)#in,s- 61751000-
4an#
F+i)#in,s
Gn#!(ment 7+n# C
%a)an'e
1251000
1751000
3001000
10- Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $+n# t! %e +se# as an
en#!(ment $+n# +nti) a)ternati*e +se is a+t!ri.e#1 6501000-
Cas
6rin'i"a) tem"!rari)y $+n'ti!nin, as Gn#!(ment 7+n#
G %a)an'e
501000
501000
11- T! re'!,ni.e res!+r'es !$ 64001000 e)# %y tr+stee as an en#!(ment- N!
restri'ti!ns are ma#e as t! +se !$ en#!(ment in'!me-
7+n# e)# %y tr+stee
Gn#!(ment 7+n# 7
%a)an'e
4001000
4001000
12- Am!+nt re'ei*a%)e $r!m restri'te# '+rrent $+n# re"resentin, re'!*ery !$
#e"re'iati!n !n en#!(ment "r!"erties D#!rmit!ryE1 6101000-
C+e $r!m restri'te# '+rrent $+n#
A''+m+)ate# #e"re'iati!n-
%+i)#in,s
101000
101000
PPPPRe*en+es an# e0"enses re)atin, t! !"erati!ns !$ te "r!"erties are
re"!rte# in te restri'te# '+rrent $+n#s-
PLANT FUN1
Thr## gro"ps@
1- Res!+r'es tat are e)# $!r ")ant e0"ansi!n an# re")a'ement
2- Res!+r'es tat are e)# $!r retirement !$ )!n,-term #e%t in'+rre# in te
a'?+isiti!n !$ te ")ant
>+ne 211 2014 6a,e 13
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
3- Te s"e'i&' "ysi'a) res!+r'es '!m"risin, te ")ant-
Tree %a)an'in, ,r!+"s !$ a''!+nts $!r ")ant res!+r'es:
'( Un#2p#n*#* p%ant f"n*s- '!nsist !$ 'as1 se'+rities1 re'ei*a%)es an#
!ter assets tat are +se# $!r te a'?+isiti!n !$ ne( ")ant !r re")a'ement !$
e0istin, ")ant- Te #i;eren'e %et(een te assets an# )ia%i)ities- Tis %a)an'e
is '!mm!n)y #i*i#e# int! D1E te "!rti!n t! %e a"")ie# t! ")ant a##iti!ns an#
D2E te "!rti!n t! %e a"")ie# t! rene(a)s an# re")a'ements-
-( R#tir#&#nt of in*#:t#*n#ss f"n*s- '!nsist !$ 'as1 se'+rities1 an#
!ter assets tat are t! %e +se# $!r te retirement !$ ")ant in#e%te#ness-
7+n# a''!+nts are %a)an'e# %y a sin,)e $+n# %a)an'e re"!rtin, t!ta)
res!+r'es a*ai)a%)e $!r retirement !$ in#e%te#ness-
/( In;#st#* in p%ant- '!nsist !$ te in#i*i#+a) "r!"erty items tat '!m"!se
te e#+'ati!na) ")ant- Carries any )!n,-term in#e%te#ness re)atin, t! ")ant
a'?+isiti!ns- Te #i;eren'e %et(een ")ant assets an# re)ate# )ia%i)ities- Tis
%a)an'e is '!mm!n)y #i*i#e# t! s!( te #i;erent s!+r'es !$ ")ant &nan'in,-
,i$ts1 '+rrent $+n#s1 an# en#!(ment $+n#s-
Transa$tions r#%at#* to th# Unr#stri$t#* P%ant F"n*s of a
Uni;#rsit+@
1- Re'ei"t !$ 'as ,i$t t! %e +se# $!r ")ant a'?+isiti!ns1 61001000-
Cas
Une0"en#e# ")ant $+n#s %a)an'e- ")ant
a##iti!n
100100
0 1001000
2- 6ayment !$ a##iti!ns t! %+i)#in,s1 6851000-
Une0"en#e# ")ant $+n#s %a)an'e- ")ant
a##iti!n
Cas
8510
00 851000
3- Iss+e !$ %!n#s t! raise $+n#s $!r '!nstr+'ti!n !$ %+i)#in,s1 a6115001000-
Cas
Une0"en#e# ")ant $+n#s %a)an'e- ")ant
a##iti!ns
1150010
00 115001000
4- C!m")eti!n !$ %+i)#in,s at '!ntra't "ri'e !$ 115001000-
Une0"en#e# ")ant $+n#s %a)an'e- ")ant
a##iti!ns
115001000
C!ntra'ts "aya%)e 115001000
>+ne 211 2014 6a,e 14
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
5- 6ayment !$ '!ntra't1 115001000-
C!ntra'ts "aya%)e
Cas
115001000
115001000
5- Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $+n# ")ant rene(a)s an#
re")a'ements in s+%se?+ent "eri!#s1 6301000-
Cas
Une0"en#e# ")ant $+n#s %a)an'e- rene(a)s
an# re")a'ements
3010
00 301000
7- 6+r'ase !$ se'+rities1 6301000-
In*estments
Cas
301000
301000
8- C!))e'ti!n !$ interest !n in*estments1 6750-
Cas
Une0"en#e# ")ant $+n#s %a)an'e- ")ant
a##iti!ns
750
750
Transa$tions r#%at#* to th# R#tir#&#nt on In*#:t#*n#ss P%ant F"n*s
of a Uni;#rsit+@
1- Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $!r "ayment !$ m!rt,a,e
insta))ment #+e1 6251000-
Cas
Retirement !$ in#e%te#ness $+n#s
%a)an'e
2510
00 251000
2- 6ayment !$ m!rt,a,e insta))ment #+e1 6251000
Retirement !$ in#e%te#ness $+n#s
%a)an'e
Cas
25100
0
251000
3- Re'ei"t !$ 'as ,i$t t! %e +se# $!r "ayment !$ insta))ments #+e !n
m!rt,a,e in 20C-20G1 6751000-
Cas
Retirement !$ in#e%te#ness $+n#s
%a)an'e
751000
751000
Transa$tions r#%at#* to that In;#st&#nt In P%ant F"n*s of a
Uni;#rsit+@
>+ne 211 2014 6a,e 15
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
1- Re'ei"t !$ ,i$t !$ )an#1 %+i)#in,s1 an# e?+i"ment $!r e#+'ati!na) an#
,enera) "+r"!ses *a)+e# at 6410001000A "r!"erties are s+%He't t!
m!rt,a,e $!r 6110001000-
4an#
Im"r!*ements !ter tan
%+i)#in,s
F+i)#in,s
G?+i"ment
M!rt,a,e "aya%)e
In*estment in ")ant- $r!m
,i$ts
8501000
1501000
215001000
5001000
110001000
310001000
2- A##iti!n t! %+i)#in,s &nan'e# %y ,i$ts re"!rte# in
+ne0"e'te# ")ant $+n#s1 6851000- F+i)#in,s
In*estment in ")ant- $r!m ,i$ts
851000
851000
3- Iss+e !$ %!n#s t! %e +se# $!r '!nstr+'ti!n !$
%+i)#in,s1 6115001000 F+i)#in,s t! %e a'?+ire#
F!n#s "aya%)e
115001000
1150010
00
4-C!m")eti!n !$ %+i)#in,s &nan'e# %y %!n#
iss+e
F+i)#in,s
F+i)#in,s t! %e a'?+ire#
1150010
00 11500100
0
5- 6ayment %y retirement !$ in#e%te#ness $+n#s !$ '+rrent insta))ment #+e
!n m!rt,a,e1 6251000
M!rt,a,e "aya%)e
In*estment in ")ant- $r!m
'+rrent $+n#s
251000
251000
5- A'?+isiti!n %y ,enera) '+rrent $+n# !$ e?+i"ment1 6151000
G?+i"ment
In*estment in ")ant- $r!m '+rrent
$+n#s
1510
00 151000
7- A'?+isiti!n %y en#!(ment $+n# !$ a #!rmit!ry *a)+e# at 63001000
4an#
F+i)#in,s
In*estment in ")ant- $r!m
en#!(ments
1251000
1751000
3001000
>+ne 211 2014 6a,e 15
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
8- T! re'!r# #e"re'iati!n !n %+i)#in,s re"resente# %y en#!(ment1 6101000
In*estment in ")ant-
en#!(ments
A''+m+)ate# #e"re'iati!n
101000
101000
9- Retirement !$ e?+i"ment 'arrie# at 651000
In*estment in ")ant- $r!m
,i$ts
G?+i"ment

51000 51000
E2#r$is#@ Pr#par# th# tat#&#nt of Finan$ia% Position of th# P%ant
F"n*s
7( Ag#n$+
- G#+'ati!na) instit+ti!n a'ts as an a,ent !r tr+stee1 !)#in, 'ertain assets !n
%ea)$ !$ !ters-
- (en a,en'y !"erati!ns are:
- sim")e an# )imite# #+rati!nQ%!t asset a''!+nts an# a''!+nts e0"ressin,
te instit+ti!n:s a''!+nta%i)ity t! !ters may %e 'arrie# in te ,enera) !r
'+rrent $+n#-
- in*!)*e# an# '!ntin+in,Qan a,en'y $+n# may %e re'!,ni.e# an# s"e'ia)
a,en'y %!!<s esta%)ise# $!r te "r!"erties s+%He't t! a,en'y '!ntr!)
- a,en'y $+n#s may %e esta%)ise# $!r "ensi!n an# retirement res!+r'es1
s"e'ia) !r,ani.ati!n res!+r'es1 st+#ent #e"!sits1 an# ta0 (it!)#in,
am!+nts-
- a''!+ntin, $!r te a,en'y is te same as it (!+)# %e $!r a "ri*ate %+siness-
0OPITAL
AF"n$tions@
- 6r!*i#e $!r re'e"ti!n1 'are an# me#i'a) an# s+r,i'a) treatment !$ te si'< !r
inH+re#
- r!!ms are "r!*i#e# an# $!!#s are s+"")ie#
- maH!r a'ti*ities 'enter a%!+t in"atients1 %+t $re?+ent)y ren#er !+t"atient
'are an# emer,en'y ser*i'es
- 'arry !n s"e'ia) a'ti*ities s+' as resear' an# n+rses trainin,
- !"erate n+m%er !$ a+0i)iary enter"rises s+' as "arma'ies $!r !+t"atients
an# 'a$eterias $!r sta; mem%ers an# *isit!rs
- its !"erati!ns 'a)) $!r im"!rtant a#ministrati*e a'ti*ities )i<e:
!s"ita) sta/n,
re,istrati!n !$ "atients
!"erati!n !$ te "ysi'a) ")ant
$!!#
)a+n#ry an# !+se<ee"in, mana,ement an# %+#,etin,
>+ne 211 2014 6a,e 17
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
a''!+ntin,
%i))in, an# '!))e'tin,
Te maH!r s!+r'e !$ !s"ita) s+""!rt is n!rma))y 'ar,es tat tat are
ma#e t! "atients $!r ser*i'es- 3!(e*er1 s+' 'ar,es $re?+ent)y $ai) t! '!*er
te $+)) '!st !$ !s"ita) !"erati!ns1 an# si,ni&'ant s+ms m+st %e s!+,t $r!m
'!ntri%+ti!ns an# ,rants $r!m "ri*ate1 "+%)i' an# 'arita%)e s!+r'es-
F"n*s for 0ospita%
- A''!+ntin, $!r !s"ita)s are simi)ar t! e#+'ati!na) instit+ti!ns tat a'?+ires
a re*en+es tat m+st %e a"")ie# t! s"e'i&' !%He'ti*es-
- Tere:s a)s! 'ertain a''!+ntin, #i;eren'es tat s!+)# %e "!inte# !+t
- 3!s"ita) ,enera))y #!es n!t re?+ire *ariety !$ $+n#s re?+ire# %y te
e#+'ati!na) instit+ti!n- Ci;eren'es !$ te t(! +nits are $!+n# t! teir
!"eratin, s+mmaries-
What ar# th# *iB#r#nt f"n*s &aintain#* :+ a hospita%?
Ci;eren'e %et(een G#+'ati!n Instit+ti!n an# 3!s"ita)s
E*"$ationa% Instit"tion
re*en+es (ere '!m"are# (it e0"en#it+res
a Im!#i&e# a''r+a) %asisJ (as em")!ye# an# #e"re'iati!n !$ te
e#+'ati!na) ")ant (as ,enera))y i,n!re#-
0ospita%s
ana)ysis an# a s+mmary !$ !"erati!ns tat '!mes ')!ser t! tat !$
"ri*ate %+siness is n!rma))y (arrante#
se)) s"e'i&' ser*i'es
e0"e'tati!n %y "atients1 ,r!+" "+r'asers !$ ins+ran'e "r!te'ti!n1 an#
ins+ran'e '!m"anies se))in, !s"ita) "r!te'ti!n tat 'ar,es $!r ser*i'es (i))
%ear a ')!se re)ati!nsi" t! te '!sts !$ tese ser*i'es-
a)t!+, '!ntri%+ti!ns may %e a*ai)a%)e s+,,est tat !s"ita) re*en+es
s!+)# %e set at )e*e)s tat (i)) "r!*i#e $!r te +)timate re")a'ements !$
"r!"erties
tese $a't!rs s+,,est tat re*en+es1 %e '!m"are# (it e0"enses1 tat a
I$+)) a''r+a) %asisJ %e em")!ye#1 an# tat #e"re'iati!n !$ !s"ita) "r!"erties
%e re'!,ni.e# in arri*in, at t!ta) !"eratin, '!sts-
Fo"r )aCor F"n* Gro"pings of 0ospita%
A( GENERAL OR CURRENT FUN1
s+mmari.e# te '+rrent res!+r'es tat are t! %e +se# in meetin, te
!%)i,ati!ns arisin, $r!m ,enera) !"erati!ns
res!+r'es tat 'an %e a"")ie# (it!+t restri'ti!n are re"!rte# ere
>+ne 211 2014 6a,e 18
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
G0"en#it+res $!r (i' s"e'i&' $+n#s a*e n!t %een "r!*i#e# are
&nan'e# $r!m tese res!+r'es-
Tis is te same in nat+re an# $+n'ti!n as te ,enera) !r '+rrent $+n# !$
te e#+'ati!na) instit+ti!n-
PT! i))+strate te a''!+ntin, $!r te ,enera) $+n# transa'ti!ns a;e'tin, te
,enera) $+n# !$
NPO 0ospita% an* #ntri#s to r#$or* th#s# transa$tions ar# %ist#*
:#%o=(
1- Car,es $!r ser*i'es t! "atients $!r year en#e# Ce'em%er 31120121 65801
000 !$ (i' 6451000 is sti)) #+e: a#H+stments an# a))!(an'es !$ 650000
a"")y t! 'ar,es-
Cas 64751000
A''!+nts Re'ei*a%)e 451000
7ree ser*i'e an# a#H+stment-'!ntra't+a)
"atients
401000
7ree ser*i'e an# a#H+stment-,enera) "atients 151500
C!+rtesy an# mis'e))ane!+s a))!(an'es 31 500
Garnin,s $r!m r!+tine ser*i'es-
in"atients

63201000
Garnin,s $r!m r!+tine ser*i'es-
!+t"atients

501000
Garnin,s $r!m s"e'ia) ser*i'es
2101000
-( Oth#r hospita% r#;#n"#s, P8-DDDD of =hi$h P'DDDD is sti%% *"# fro&
t#&porar+ f"n* in r#i&:"rs#&#nt of r#s#ar$h #2p#ns#s
Cas 6410000
C+e $r!m tem"!rary $+n# 10000
Genera) '!ntri%+ti!n1 #!nati!ns1 )e,a'ies an#
%e?+ests
6180000
Grants $r!m '!mm+nity 'ests1 $!+n#ati!ns
122000
C!nate# ser*i'es an# '!mm!#ities
101000
In'!me trans$ers $r!m tem"!rary $+n#s
571500
Mis'e))ane!+s re*en+es
501000
/( Co%%#$tions of int#r#st an* *i;i*#n*s on #n*o=&#nt f"n*s s#$"riti#s,
PE>DDD of =hi$h P>DDD is *"# fro& #n*o=&#nt f"n* F'
r#pr#s#nting :on* pr#&i"& a&ortization(
>+ne 211 2014 6a,e 19
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
Cas 6 851000
C+e $r!m Gn#!(ment 7+n# R 1 51000
In'!me $r!m In*estments 801000
4- E2p#n*it"r#s for hospita% s"pp%i#s, P-DDDDD of =hi$h P-> has not :##n
pai*(
In*ent!ry s+"")ies 62001 000
Cas 61751
000
2!+'ers "aya%)e
251000
>( 0ospita% s"pp%i#s $harg#* p"t, P'7D,DDD
A#ministrati*e an# ,enera) 6 51000
3!+se!)# an# "r!"erty 101000
6r!$essi!na) 'are !$ "atients 151000
Cietary 1201000
O+t"atient an# emer,en'y 51000
Oter e0"enses 151000
In*ent!ry !$ s+"")ies 61701000
6( Pa+&#nt of hospita% sa%ari#s an* =ag#s, P8GD,DDD
A#ministrati*e an# ,enera) 6851000
3!+se!)# an# "r!"erty 451000
6r!$essi!na) 'are !$ "atients 2201000
Cietery 501000
O+t"atient an# emer,en'y 301000
Oter e0"enses 501000
Cas 64901000
7( Pa+&#nt of hospita% #2p#ns#s oth#r than sa%ari#s an* =ag#s
A#ministrati*e an# ,enera) 6201000
3!+se!)# an# "r!"erty 101000
6r!$essi!na) 'are !$ "atients 251000
Cietery 71500
O+t"atient an# emer,en'y 21500
Oter e0"enses 101000
Cas 6751000
E( Pa+&#nts of int#r#st on &ortgag#, P6D,DDD an* of insta%%&#nt *"# on
&ortgag# $arri#* as %ia:i%it+ in th# p%ant f"n*s, P>D,DDD(
Interest e0"ense 6501000
Genera) $+n# %a)an'e 501000
Cas
61101000
9- A#H+stments re?+ire# !n Ce'em%er 31120FA
a))!(an'e $!r +n'!))e'ti%)e a''!+nts1 62500
>+ne 211 2014 6a,e 20
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
a''r+e# sa)aries an# (a,es1 65000
'ar,es $!r #e"re'iati!n !n "r!"erties 'arrie# as assets %y ")ant $+n#s1 685000
t! re'!,ni.e am!+nt t! %e "ai# t! ")ant $+n#s e?+a) t! #e"re'iati!n !n
"r!"erties-
PTe trans$er !$ 'as t! ")ant $+n#s t! &nan'e te +)timate re")a'ement !$
"r!"erties is re'!r#e# %y a #e%it t! ,enera) $+n# %a)an'e an# a 're#it t! 'as- In te
e0am")e1 re'!,niti!n !$ reim%+rsement #+e t! ")ant $+n#s is re"!rte# %y a 're#it t!
a "aya%)e1 te "aya%)e (!+)# %e ')!se# (en te 'as is trans$erre#-
'D( To $%os# g#n#ra% op#rating r#;#n"# an* #2p#ns#s a$$o"nts at th# #n*
of th# p#rio*
>+ne 211 2014 6a,e 21
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
''( To $%os# oth#r r#;#n"# an* #2p#ns#s a$$o"nts at th# #n* of th# p#rio*(
HPr#par# th# $%osing #ntr+I
PIn '!nsi#erin, te "resentati!n !$ !s"ita) re*en+es $!r statement "+r"!ses1 te
$!))!(in, ')assi&'ati!ns are +se#A
,r!ss re*en+es $r!m "atients
#e#+'ti!ns $r!m re*en+es an#
re*en+e s!+r'es
PIn '!nsi#erin, !"eratin, e0"enses1 it re'!,ni.es te $!))!(in, ')assi&'ati!nsA
a#ministrati*e an# ,enera)
#ietary
!+se!)# an# "r!"erty
"r!$essi!na) 'are !$ "atients
!+t"atient an# emer,en'y
!ter e0"enses
5( TE)PORARJ FUN1
C!m"!se# !$ '+rrent res!+r'es tat1 (i)e a*ai)a%)e $!r '+rrent "+r"!ses1 are s+%He't t!
'ertain )imitati!ns in teir +se
7!r e0am")e1 res!+r'es $r!m ,i$ts !n ,rants an# in'!me $r!m en#!(ment $+n#s tat 'an
%e s"ent !n)y $!r s"e'i&e# "+r"!ses1 s+' as resear'1 a me#i'a) )i%rary1 !r n+rses trainin,1
(!+)# %e re"!rte# as tem"!rary $+n#s
Tem"!rary $+n#s are i#enti'a) in nat+re an# $+n'ti!ns t! te restri'te# '+rrent $+n#s !$
te e#+'ati!na) instit+ti!n-
T#&porar+ f"n* transa$tions of NPO 0ospita% an* th# #ntri#s to s"&&ariz# th#s#
ar# %ist#* :#%o=@
>+ne 211 2014 6a,e 22
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
1- Re'ei"t !$ 'as ,i$t t! %e +se# $!r me#i'a) resear'1 610000
Cas 61001000
Tem"!rary $+n# A %a)an'e 61001000
2- 6+r'ase !$ se'+rities1 685000
Tem"!rary in*estment -$+n# A 6851000
Cas 685000
3- Re'ei"ts !$ 'as ,i$ts t! %e +se# $!r %!!<s an# H!+rna)s $!r !s"ita)
"atients1 610000
Cas 6101000
Tem"!rary $+n# %a)an'e 6101000
4- Sa)e !$ se'+rities1 %!!< *a)+e1 6250001 $!r 6231500
Cas 6231500
Tem"!rary $+n# A %a)an'e 151 000
Tem"!rary in*estment -$+n# A 6251000
5- C!))e'ti!ns !$ interest an# #i*i#en#s
Cas 651000
Tem"!rary $+n# A %a)an'e 65000
5- G0"en#it+res #+rin, year %y ,enera) $+n# $!r resear' 'ar,ea%)e t!
tem"!rary $+n# A1 650000A 'as trans$erre# t! ,enera) $+n#1 6401000
Tem"!rary in*estment
-$+n# A
6501000
Cas 6401000
C+e t! ,enera)
$+n#
101000
7- 6ayment !$ ,enera) $+n# $!r %!!<s an# H!+rna)s 'ar,ea%)e t! tem"!rary $+n#
F %a)an'e1 67500-
Tem"!rary $+n# A %a)an'e 671500
Cas 671500
8- A#H+stments re?+ire# !n Ce'em%er 3112012A a''r+e# interest !n
se'+rities1 6250 A''r+e# interest in tem"!rary $+n#
6250
Tem"!rary $+n# A %a)an'e 6250
C( EN1OW)ENT FUN1
re"resent res!+r'es tat a*e %een trans$erre# +n#er '!n#iti!ns tat )imit e0"en#it+res
t! te in'!me tat is "r!#+'e# %y s+' res!+r'es-
Assets may %e trans$erre# #ire't)y t! te !s"ita)1 !r tey may %e trans$erre# t! a
tr+stee (! a#ministers tem $!r te %ene&t !$ te instit+ti!n
May a)s! %e 'reate# %y te a'ti!n !$ te ,!*ernin, %!ar# !$ te !s"ita)-
Terms !$ it may ")a'e n! restri'ti!ns !n te +se !$ te en#!(ment in'!me1 !r tey may
s"e'i$y a "arti'+)ar "+r"!se $!r (i' te in'!me is t! %e +se#-
In te a%sen'e !$ restri'ti!ns1 its in'!me %e'!mes a*ai)a%)e t! te ,enera) $+n#A (en
tere are restri'ti!nsA in'!me is in a tem"!rary $+n#-
Gn#!(ment $+n# transa'ti!ns !$ N6O 3!s"ita) an# te entries t! s+mmari.e tese are
)iste# %e)!(-
>+ne 211 2014 6a,e 23
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
1- R#$#ipt of :on*s in #sta:%ish&#nt of En*o=&#nt f"n* F' as fo%%o=s@ Co(
:on*s Fa$# ;a%"#, P>DDDDD, &arK#t ;a%"# on *at# of transf#r,
P87D,DDD(
In*estments in %!n#s at $air *a)+eDGn#!(ment $+n# R1E 6110001000
In*estments-+nam!rti.e# %!n# "remi+mDGn#!(ment $+n# R1E 501000
In*estments-+nam!rti.e# %!n# #is'!+nt DGn#!(ment $+n#
R1E

6301000
Gn#!(ment $+n# R1 %a)an'e
110201000
-( R#$#ipt of $ash in #sta:%ish&#nt of En*o=&#nt f"n* F -,
P->DDDD(En*o=&#nt in$o&# is to :# "s#* for sp#$if#* r#s#ar$h
proC#$ts(
Cas 62501000
Gn#!(ment $+n# R1
%a)an'e
62501000
/( P"r$has# of 'DDD shar#s of Co(T pr#f#r#n$# shar#s, P-8D,DDD(
In*estment in "re$eren'e saresDGn#!(ment
$+n# R2E
62401000
Cas
62401000
8( Co%%#$tion of int#r#st :+ g#n#ra% or $"rr#nt f"n* that in$%"*#s P>DDD
r#i&:"rsa:%# to En*o=&#nt f"n* F' for :on* pr#&i"& a&ortization(
C+e $r!m ,enera) !r '+rrent $+n# 65000
In*estments-+nam!rti.e# %!n#
"remi+mDGn#!(ment $+n# R1E
65000
>( a%# of Co( :on*s at fair ;a%"#, P->D,DDD
Cas 62501000
In*estments-+nam!rti.e# %!n# #is'!+nt
DGn#!(ment $+n# R1E
151000
In*estments-at %!n#s at $air
*a)+eDGn#!(ment $+n# R1E
62501000
Gn#!(ment $+n# R1 %a)an'e 151000
1(PLANT FUN1
T=o Gro"ps of P%ant R#so"r$#s
1- 6ysi'a) res!+r'es '!m"risin, te !s"ita) "r!"erties
2- Cas an# !ter assets tat is a*ai)a%)e $!r te im"r!*ement an# te re")a'ement !$ te
!s"ita) "r!"erties-
A)t!+, te t(! asset !$ ,r!+"s are re'!,ni.e#1 !s"ita)s (!+)# ne*erte)ess '!m%ine#
tese (itin a sin,)e ")ant $+n#s 'ate,!ry- Len tere are ')aims a,ainst ")ant $+n#
res!+r'es in '!nne'ti!n (it !ri,ina) &nan'in, !$ "r!"erties1 '!nstr+'ti!n in "r!,ress1 !r
'+rrent "r!"erty a'?+isiti!ns1 s+' !%)i,ati!ns (!+)# %e re'!,ni.e# in te ")ant $+n#s-
F"n*s ar# :a%an$#* :+ t=o p%ant f"n* :a%an$#s@
1- In*estment in ")ant 2- Reser*e $!r ")ant im"r!*ement an# e0"ansi!n
Pr#par# th# #ntri#s of th# fo%%o=ing transa$tions for th# p%ant f"n* of 0ospita%
LLL@
1- A'?+isiti!n !$ )an# '!nstr+'ti!n !$ !s"ita) &nan'e# %y ,i$ts !$ 'as1 61500000
an# 'as raise# tr!+, a m!rt,a,e1 6110001000-
>+ne 211 2014 6a,e 24
ACCOUNTING 403 Sat 7:00-10:00 RM 307 1st
Semester AY 2014-2015
2- Re'ei"t !$ ,i$ts !$ 'as !$ 6501000 an# se'+rities *a)+e# at 61001000 $!r ")ant
im"r!*ement an# re")a'ements
3- A'?+isiti!n !$ e?+i"ment1 6301000 m!rt,a,e1 6110001000-
4- 6ayment %y ,enera) $+n# !$ m!rt,a,e insta))ment1 6501000-
5- A#H+stments re?+ire# !n Ce'em%er 31120F:
aE a''r+e# in*estments !n in*estment161500A
%E #e"re'iati!n $!r ")ant assets $!r year1685000A
'E am!+nt re'!*era%)e $r!m ,enera) $+n# e?+a) t! #e"re'iati!n !n ")ant
assets-
>+ne 211 2014 6a,e 25