Accounting for NPOs # 1 (NOT FOR PROFIT ORGANIZATION)

8/12/2019 Accounting for NPOs # 1 (NOT FOR PROFIT ORGANIZATION)

1/25

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-prot organization?

A not-for-prot 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 !ra ,r!+" !$ "artners !r sare!)#ers A n!t-$!r-"r!&t !r,ani.ati!n stri*es !n)yt! !%tain re*en+e s+/'ient t! '!*er its e"enses T+s te '!n'e"t !$in'!me is n!t meanin,$+) N!t-$!r-"r!&t !r,ani.ati!ns '!nstit+te a si,ni&'antse,ment !$ !+r s!'iety S!me eam")es are:

1 !)+ntary ea)t an# (e)$are !r,ani.ati!ns:2 S'!!)s '!))e,es an# +ni*ersities3 !s"ita)s4 C!!"erati*es5 a%!r +ni!ns 6er$!rmin, arts !r,ani.ati!ns7 !+n#ati!ns8 Re)i,i!+s !r,ani.ati!ns9 C!+ntry ')+%s10 6r!$essi!na) ass!'iati!ns

FINANCIAL REPORT FOR NOT !FOR- PROFIT ORGANIZATION

P"rpos# of Finan$ia% tat#ntsTe "rimary "+r"!se !$ &nan'ia) statements is t! "r!*i#e re)e*antin$!rmati!n t! meet te '!mm!n interests !$ #!n!rs mem%ers 're#it!rs an#!ters (! "r!*i#e res!+r'es t! n!t-$!r-"r!&t !r,ani.ati!ns T!se eterna)+sers !$ &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#

% !( mana,ers #is'ar,e teir ste(ar#si" res"!nsi%i)ities an# !teras"e'ts !$ teir "er$!rman'e

M!re s"e'i&'a))y te "+r"!se !$ &nan'ia) statements in')+#in,a''!m"anyin, n!tes is t! "r!*i#e in$!rmati!n a%!+t:

a Te am!+nt an# nat+re !$ an !r,ani.ati!ns assets )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#


2/25



# !( an !r,ani.ati!n !%tains an# s"en#s 'as 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$!rmati!n a%!+t te )i?+i#ity&nan'ia) =ei%i)ity an# interre)ati!nsi" !$ an !r,ani.ati!ns asset an#)ia%i)ities in !r#er t! )et te eterna) +sers !$ s+' %e a%)e t! assesste !r,ani.ati!ns a%i)ity t! '!ntin+e "r!*i#in, te ser*i'es te!r,ani.ati!ns )i?+i#ity &nan'ia) =ei%i)ity a%i)ity t! meet !%)i,ati!ns an#nee#s $!r eterna) &nan'in,

A statement !$ &nan'ia) "!siti!n sa)) $!'+s !n te !r,ani.ati!n as a (!)ean# sa)) re"!rt te am!+nts !$ its t!ta) assets )ia%i)ities an# net assets

A statement !$ &nan'ia) "!siti!n in')+#in, a''!m"anyin, n!tes t! &nan'ia)statements "r!*i#es re)e*ant in$!rmati!n a%!+t )i?+i#ity &nan'ia)=ei%i)ity an# te interre)ati!nsi" !$ an !r,ani.ati!n@s assets an# )ia%i)itiesTat in$!rmati!n ,enera))y is "r!*i#e# %y a,,re,atin, assets an# )ia%i)itiestat "!ssess simi)ar 'ara'teristi's int! reas!na%)y !m!,ene!+s ,r!+"s!r eam")e entities ,enera))y re"!rt in#i*i#+a) items !$ assets in!m!,ene!+s ,r!+"s s+' as 'as an# 'as e?+i*a)ents a''!+nts an#n!tes re'ei*a%)e $r!m "atients st+#ents mem%ers an# !ter re'i"ients !$ser*i'es in*ent!ries !$ materia)s an# s+"")ies #e"!sits an# "re"ayments $!rrent ins+ran'e an# !ter ser*i'es mar


3/25



n!tes t! &nan'ia) statements Se"arate )ine items may%e re"!rte# (itin"ermanent restri'ti!ns $!r !)#in, !$ :

a assets s+' as )an# !r (!r


4/25



endowmentE 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+es ,ains e"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 asset% te re)ati!nsi"s !$ t!se transa'ti!ns an# !ter e*entsan# 'ir'+mstan'es t! ea' !ter ' !( te !r,ani.ati!ns res!+r'es are+se# in "r!*i#in, *ari!+s "r!,rams !r ser*i'esTe in$!rmati!n in tis statement +se# (it re)ate# #is')!s+res an#in$!rmati!n in !ter &nan'ia) statements e)"s #!n!rs 're#it!rs an# !terst!

a e*a)+ate te !r,ani.ati!ns "er$!rman'e #+rin, a "eri!#% assess an !r,ani.ati!ns ser*i'e e;!rts an# its a%i)ity t! '!ntin+e "r!*i#eser*i'es an#' assess !( an !r,ani.ati!ns mana,ers a*e #is'ar,e# teir ste(ar#si"res"!nsi%i)ities an# !ter as"e'ts !$ teir "er$!rman'e

Tis statement +se te #es'ri"ti*e term - 'an,e in net assets !r 'an,eine?+ity !$ te entity as a (!)e

/( TATE)ENT OF CA0 FLOWTis 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 statementmay %e +sin, eiter !$ te t(! met!#s #ire't an# in#ire't

PROFEIONAL ORGANIZATIONTere 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*eteir ea# !/'es in Metr! Mani)a %+t teir 'a"ters are $!+n# a)) !*er te

'!+ntry Teir !"erati!ns are ,enera))y &nan'e# %y mem%ersi" #+estat are "ai# ann+a))y Sarin, !$ tese mem%ersi" $ees am!n, te#i;erent 'a"ters re,i!na) '!+n'i)s an# ea# !/'e are "r!*i#e# $!r in teir%y-)a(s Fi,,er !r,ani.ati!ns a*e esta%)ise# re,i!na) '!+n'i)s (i'!*ersee te 'a"ters a' !r,ani.ati!n as its !(n missi!n an# *isi!n an#its a'ti*ities sa)) %e t!(ar#s te attainment !$ tese ,!a)s Teir !"erati!nsare '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 21 2014 6a,e 4


5/25



!$ !/'ers e)e'te# $r!m am!n, te mem%ers !$ te %!ar# *ery yeare)e'ti!ns are '!n#+'te# nati!n(i#e ari!+s '!mmittees are 'reate# (ita 'airman an# mem%ers (! ,i*e teir time an# e;!rt *!)+ntari)yt! a'ie*e te !%He'ti*es !$ te !r,ani.ati!ns +)) a''r+a) %asis is +se#

(ene*er "ra'ti'a%)e #e"re'iati!n is "r!*i#e# %+t is n!t '!nsi#ere# in#eterminin, te e'ess !$ re'ei"ts !*er #is%+rsements T(!


6/25



"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'est!,eter (it re)ate# )ia%i)ities an# 'an,es terein A''!+ntin, is %ase# !nFA5 FA ''6, FA ''7, FA '8 an* AICPA A"*it an* A$$o"nting

G"i*# for h#a%th $ar# organizations(

+n#s '!mm!n)y +se# %y n!t-$!r-"r!&t !r,ani.ati!ns in')+#e te $!))!(in,:1Unrestri'te# $+n# 2 Restri'te# $+n# 3 n#!(ment $+n#s 4A,en'y $+n#5 Ann+ity $+n# an# )i$e in'!me $+n# !an $+n# 76)ant $+n#

Unr#stri$t#* F"n*9 G#n#ra% F"n*9 C"rr#nt F"n*Tis is a)s!


7/25



A$$o"nting for 3$ontri:"t#* s#r;i$#s4 < C!ntri%+te# ser*i'es arere'!,ni.e# in te statement !$ a'ti*ities i$ #ith#r !$ te $!))!(in, '!n#iti!nsis 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


8/25



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 $"rr#nt "s# %+t e"an#a%)e!n)yas a"thoriz#* :+ th# *onor !$ te assets Te #!n!r may im"!se eiter+seJ restri'ti!n !r time restri'ti!nJ !r %!t Assets !$ te restri'te# $+n#are not *#ri;#* fro& th# op#rations of th# nonprot organization(E2p%ain #n*o=nt of f"n*(A "ermanent en#!(ment $+n#J is !ne $!r (i' te "rin'i"a) m+st %emaintaine#In*#nit#%+ in re*en+e "r!#+'in, in*estment On)y te re*en+e $r!m tein*estments may %e e"en#e# A "ermanent en#!(ment $+n# is a)s!


9/25



sta%)ise# (en assets are '!ntri%+te# t! te n!n"r!&t !r,ani.ati!n (itte sti"+)ati!n tat te !r,ani.ati!n sa)) "ay s"e'i&e# 2#* 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!# $!r te s"e'i&e# "ayments te+ne"en#e# assets !$ te ann+ity $+n#are trans$erre# t! te +nrestri'te#$+n# restri'te# $+n# !r en#!(ment $+n# asinstr"$t#*

P#r&an#nt%+ r#stri$t#* n#t ass#ts"ermanent)y en#!(ment $+n#JUn$on*itiona% Pro&is#s Tr#atnt Re"!rte# in th# p#rio* p%#*g#s ar# &a*# n!t in te "eri!# !$ 'as'!))e'ti!nC!ntri%+ti!n (i)) n!t %e re'ei*e# +nti) net year te '!ntri%+ti!n (i)) %ere"!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)itytat te '!n#iti!n (i)) n!t %e met is rem!te Tr#atnt of R#$%assi$ations of N#t ass#tsam")e: In "ri!r year a %ene$a't!r ma#e a '!ntri%+ti!n t! a "ri*aten!n"r!&t +ni*ersity (it te sti"+)ati!n tat te #!nati!n %e +se# $!r$a'+)ty tra*e) #+rin, te '+rrent yearTis '!ntri%+ti!n is re"!rte# +n#er tem"!rari)y restri'te# net assets in te"ri!r yearLen te '!ntri%+ti!n is +se# $!r $a'+)ty tra*e) in te '+rrent year it isre"!rte# as re')assi&'ati!nJ in te '+rrent year@s statement !$ a'ti*ities Re-')assi&'ati!ns are re"!rte# in te statement !$ a'ti*ities as net assetsre)ease# $r!m restri'ti!nsJTis 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 $!r restri'te# netassetsTe tra*e) e"ense is re"!rte# in te '+rrent year@s statement !$ a'ti*itiesas #e#+'ti!n $r!m +nrestri'te# net assets A)) e"enses are #e'rease in+nrestri'te# net assetsTe +se !$ te '!ntri%+ti!n $!r $a'+)ty tra*e) as n! e;e't !n +nrestri'te# netassets at te '+rrent year en#%e'a+se te e;e't is !;settin, meanin,in'rease in +nrestri'te# net assets +"!n re')assi&'ati!n $r!m tem"!rari)y

>+ne 21 2014 6a,e 9


10/25



restri'te# t! +nrestri'te#J an# #e'rease in +nrestri'te# net assets (en te'!ntri%+ti!n is +se# !r e"en#e#

LOAN FUN1 C!nsist !$ res!+r'es tat are a*ai)a%)e $!r )!ans t! st+#ents

Ori,inate $r!m ,i$ts tey may %e %+i)t +" !*er a "eri!# !$ years $r!mst+#ent $ees $!r s+' "+r"!se !r $!r trans$ers $r!m en#!(ment $+n# (!sein'!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!nsesta%)ise# %y t!se "r!*i#in, )!an te )!an $+n#

N!ne"en#a%)e +n'!))e'ti%)e )!ans $+n# a#ministrati*e e"enses an#)!sses !n te sa)e !$ $+n# in*estments an# as a res+)t !$ 're#its arisin, $r!minterest !n )!ans in'!me $r!m $+n# in*estments an# ,ains !n sa)e !$ $+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+#ents 650000Cas 50000

!an $+n# net assets 50000

2 6+r'ase !$ se'+rities $!r 625000 (i' in')+#es a''r+e# interest !$ 600In*estment 25000

A''r+e# interest 00 Cas 25003!ans t! st+#ents 620000N!tes re'ei*a%)e 20000

Cas 20000

4 C!))e'ti!ns !$ interest !n in*estments 61500Cas 1500

A''r+e# interest 00 !an $+n# net assets 900

8( C!))e'ti!n !$ )!ans (it interest !$ 6150 6750

Cas 750

N!tes Re'ei*a%)e 7500 !an $+n# net assets 150

>+ne 21 2014 6a,e 10


11/25



>( Un'!))e'ti%)e )!ans (ritten !; 6300

!an $+n# net assets 300

N!tes Re'ei*a%)e 300

EN1OW)ENT AN1 OT0ER NONEPEN1A5LE FUN1

!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%)e a)t!+, it may 'an,e as ares+)t !$ te sa)e !$ restri'ti!ns are ")a'e# !n te +se !$ $+n# in'!me %y teinstit+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#

n#!(ments are 'reate# %y trans$er !$ assets #ire't)y t! te instit+ti!n

+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 !$ %!!


12/25



In*estments-!r#inary saresIn*estments-"re$eren'esares

n#!(ment +n# F

%a)an'en#!(ment +n# C

%a)an'e

715000245000

715000245000

3 6!!)in, !$ n#!(ment +n#s A F C n#!(ment $+n# %a)an'es (ererestate# in terms !$ mar


13/25



6!!)e# Cas 105000

8 Sa)e !$ Y C! "re$eren'e sares $!r 6200006!!)e# Cas

6!!)e# in*estments- "re$eren'esaresGains an# )!sses !n "!!)e#in*estments

20000

25000010000

9 Re'ei"t !$ ,i$t !$ "r!"erties t! %e +se# as a #!rmit!ry Net in'!me a$terre'!,ni.in, an ann+a) 'ar,e $!r #e"re'iati!n !$ 610000 is t! %e +se# $!r'ertain restri'te# "+r"!ses A""raise# *a)+es !$ "r!"erties !n te #ate !$,i$t: an#- 6125000 F+i)#in,s- 6175000an#F+i)#in,s

n#!(ment +n# %a)an'e

125000175000

300000

10 Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $+n# t! %e +se# as anen#!(ment $+n# +nti) a)ternati*e +se is a+t!ri.e# 650000Cas6rin'i"a) tem"!rari)y $+n'ti!nin, as n#!(ment +n# %a)an'e

5000050000

11 T! re'!,ni.e res!+r'es !$ 6400000 e)# %y tr+stee as an en#!(ment N!restri'ti!ns are ma#e as t! +se !$ en#!(ment in'!me+n# e)# %y tr+stee

n#!(ment +n# %a)an'e

400000400000

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!ryE 610000+e $r!m restri'te# '+rrent $+n#A''+m+)ate# #e"re'iati!n-%+i)#in,s

1000010000

PPPPRe*en+es an# e"enses re)atin, t! !"erati!ns !$ te "r!"erties arere"!rte# in te restri'te# '+rrent $+n#s

PLANT FUN1Thr## gro"ps@1 Res!+r'es tat are e)# $!r ")ant e"ansi!n an# re")a'ement

2 Res!+r'es tat are e)# $!r retirement !$ )!n,-term #e%t in'+rre# in tea'?+isiti!n !$ te ")ant

>+ne 21 2014 6a,e 13


14/25



3 Te s"e'i&' "ysi'a) res!+r'es '!m"risin, te ")ant

Tree %a)an'in, ,r!+"s !$ a''!+nts $!r ")ant res!+r'es:'( Un#2p#n*#* p%ant f"n*s- '!nsist !$ 'as se'+rities re'ei*a%)es an#!ter assets tat are +se# $!r te a'?+isiti!n !$ ne( ")ant !r re")a'ement !$eistin, ")ant Te #i;eren'e %et(een te assets an# )ia%i)ities Tis %a)an'eis '!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 !$ 'as se'+rities an#!ter assets tat are t! %e +se# $!r te retirement !$ ")ant in#e%te#ness+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"!sete e#+'ati!na) ")ant Carries any )!n,-term in#e%te#ness re)atin, t! ")anta'?+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$ts '+rrent $+n#s an# en#!(ment $+n#s

Transa$tions r#%at#* to th# Unr#stri$t#* P%ant F"n*s of aUni;#rsit+@1 Re'ei"t !$ 'as ,i$t t! %e +se# $!r ")ant a'?+isiti!ns 6100000

CasUne"en#e# ")ant $+n#s %a)an'e- ")ant

a##iti!n

100000 100000

2 6ayment !$ a##iti!ns t! %+i)#in,s 685000Une"en#e# ")ant $+n#s %a)an'e- ")anta##iti!nCas

85000 85000

3 Iss+e !$ %!n#s t! raise $+n#s $!r '!nstr+'ti!n !$ %+i)#in,s a61500000Cas

Une"en#e# ")ant $+n#s %a)an'e- ")anta##iti!ns

15000

00 1500000

4 C!m")eti!n !$ %+i)#in,s at '!ntra't "ri'e !$ 1500000Une"en#e# ")ant $+n#s %a)an'e- ")anta##iti!ns

1500000

C!ntra'ts "aya%)e 1500000

>+ne 21 2014 6a,e 14


15/25



5 6ayment !$ '!ntra't 1500000C!ntra'ts "aya%)e

Cas1500000

1500000

Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $+n# ")ant rene(a)s an#re")a'ements in s+%se?+ent "eri!#s 630000Cas

Une"en#e# ")ant $+n#s %a)an'e- rene(a)san# re")a'ements

30000 30000

7 6+r'ase !$ se'+rities 630000In*estments

Cas30000

30000

8 C!))e'ti!n !$ interest !n in*estments 6750Cas

Une"en#e# ")ant $+n#s %a)an'e- ")anta##iti!ns

750750

Transa$tions r#%at#* to th# R#tir#nt on In*#:t#*n#ss P%ant F"n*sof a Uni;#rsit+@1 Re'ei"t !$ 'as $r!m +nrestri'te# '+rrent $!r "ayment !$ m!rt,a,einsta))ment #+e 625000Cas

Retirement !$ in#e%te#ness $+n#s%a)an'e

25000 25000

2 6ayment !$ m!rt,a,e insta))ment #+e 625000Retirement !$ in#e%te#ness $+n#s%a)an'e

Cas

25000

25000

3 Re'ei"t !$ 'as ,i$t t! %e +se# $!r "ayment !$ insta))ments #+e !n

m!rt,a,e in 20C-20 675000CasRetirement !$ in#e%te#ness $+n#s

%a)an'e

7500075000

Transa$tions r#%at#* to that In;#stnt In P%ant F"n*s of aUni;#rsit+@

>+ne 21 2014 6a,e 15


16/25



1Re'ei"t !$ ,i$t !$ )an# %+i)#in,s an# e?+i"ment $!r e#+'ati!na) an#,enera) "+r"!ses *a)+e# at 64000000 "r!"erties are s+%He't t!m!rt,a,e $!r 61000000

an#Im"r!*ements !ter tan%+i)#in,sF+i)#in,s?+i"ment

M!rt,a,e "aya%)eIn*estment in ")ant- $r!m

,i$ts

850000150000

2500000500000

10000003000000

2 A##iti!n t! %+i)#in,s &nan'e# %y ,i$ts re"!rte# in+ne"e'te# ")ant $+n#s 685000 F+i)#in,s

In*estment in ")ant- $r!m ,i$ts85000

85000

3 Iss+e !$ %!n#s t! %e +se# $!r '!nstr+'ti!n !$%+i)#in,s 61500000 F+i)#in,s t! %e a'?+ire#

F!n#s "aya%)e1500000

1500000

4C!m")eti!n !$ %+i)#in,s &nan'e# %y %!n#iss+e

F+i)#in,sF+i)#in,s t! %e a'?+ire#

1500000 150000

0

5 6ayment %y retirement !$ in#e%te#ness $+n#s !$ '+rrent insta))ment #+e!n m!rt,a,e 625000M!rt,a,e "aya%)e

In*estment in ")ant- $r!m'+rrent $+n#s

2500025000

A'?+isiti!n %y ,enera) '+rrent $+n# !$ e?+i"ment 615000?+i"ment

In*estment in ")ant- $r!m '+rrent

$+n#s

15000 15000

7 A'?+isiti!n %y en#!(ment $+n# !$ a #!rmit!ry *a)+e# at 6300000an#F+i)#in,s

In*estment in ")ant- $r!men#!(ments

125000175000

300000

>+ne 21 2014 6a,e 1


17/25



8 T! re'!r# #e"re'iati!n !n %+i)#in,s re"resente# %y en#!(ment 610000In*estment in ")ant-en#!(ments

A''+m+)ate# #e"re'iati!n

1000010000

9 Retirement !$ e?+i"ment 'arrie# at 65000In*estment in ")ant- $r!m,i$ts

?+i"ment5000 5000

E2#r$is#@ Pr#par# th# tat#nt of Finan$ia% Position of th# P%antF"n*s7( Ag#n$+

- #+'ati!na) instit+ti!n a'ts as an a,ent !r tr+stee !)#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 e"ressin,te instit+ti!ns 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 %!!


18/25



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 !(e*er s+' 'ar,es $re?+ent)y $ai) t! '!*erte $+)) '!st !$ !s"ita) !"erati!ns an# si,ni&'ant s+ms m+st %e s!+,t $r!m'!ntri%+ti!ns an# ,rants $r!m "ri*ate "+%)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'?+iresa re*en+es tat m+st %e a"")ie# t! s"e'i&' !%He'ti*es

- Teres a)s! 'ertain a''!+ntin, #i;eren'es tat s!+)# %e "!inte# !+t

- !s"ita) ,enera))y #!es n!t re?+ire *ariety !$ $+n#s re?+ire# %y tee#+'ati!na) instit+ti!n i;eren'es !$ te t(! +nits are $!+n# t! teir!"eratin, s+mmaries

What ar# th# *iB#r#nt f"n*s &aintain#* :+ a hospita%?

i;eren'e %et(een #+'ati!n Instit+ti!n an# !s"ita)sE*"$ationa% Instit"tionre*en+es (ere '!m"are# (it e"en#it+res

a m!#i&e# a''r+a) %asisJ (as em")!ye# an# #e"re'iati!n !$ tee#+'ati!na) ")ant (as ,enera))y i,n!re#

0ospita%sana)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

e"e'tati!n %y "atients ,r!+" "+r'asers !$ ins+ran'e "r!te'ti!n 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+ess!+)# %e set at )e*e)s tat (i)) "r!*i#e $!r te +)timate re")a'ements !$"r!"erties

tese $a't!rs s+,,est tat re*en+es %e '!m"are# (it e"enses tat a$+)) a''r+a) %asisJ %e em")!ye# an# tat #e"re'iati!n !$ !s"ita) "r!"erties%e re'!,ni.e# in arri*in, at t!ta) !"eratin, '!sts

Fo"r )aor F"n* Gro"pings of 0ospita%

A( GENERAL OR CURRENT FUN1s+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 21 2014 6a,e 18


19/25



"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 $!r year en#e# e'em%er 312012 6580000 !$ (i' 645000 is sti)) #+e: a#H+stments an# a))!(an'es !$ 60000a"")y t! 'ar,es

Cas 6475000A''!+nts Re'ei*a%)e 45000ree ser*i'e an# a#H+stment-'!ntra't+a)"atients

40000

ree ser*i'e an# a#H+stment-,enera) "atients 1500C!+rtesy an# mis'e))ane!+s a))!(an'es 3 500

arnin,s $r!m r!+tine ser*i'es-in"atients 6320000

arnin,s $r!m r!+tine ser*i'es-

!+t"atients 50000arnin,s $r!m s"e'ia) ser*i'es210000

( Oth#r hospita% r#;#n"#s, P8DDDD 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+e $r!m tem"!rary $+n# 10000

Genera) '!ntri%+ti!n #!nati!ns )e,a'ies an#%e?+ests

6180000

Grants $r!m '!mm+nity 'ests $!+n#ati!ns 122000!nate# ser*i'es an# '!mm!#ities 10000

In'!me trans$ers $r!m tem"!rary $+n#s 57500

Mis'e))ane!+s re*en+es 50000

/( Co%%#$tions of int#r#st an* *i;i*#n*s on #n*o=nt f"n*s s#$"riti#s,P>DDD of =hi$h P>DDD is *"# fro& #n*o=nt f"n* 'r#pr#s#nting :on* pr#&i"& a&ortization(

>+ne 21 2014 6a,e 19


20/25



Cas 6 85000 +e $r!m n#!(ment +n# 1 5000

In'!me $r!m In*estments 80000

4 E2p#n*it"r#s for hospita% s"pp%i#s, PDDDDD of =hi$h P> has not :##npai*(In*ent!ry s+"")ies 6200 000

Cas 6175000

!+'ers "aya%)e25000

>( 0ospita% s"pp%i#s $harg#* p"t, P'7D,DDDA#ministrati*e an# ,enera) 6 5000!+se!)# an# "r!"erty 100006r!$essi!na) 'are !$ "atients 15000

ietary 120000O+t"atient an# emer,en'y 5000Oter e"enses 15000

In*ent!ry !$ s+"")ies 6170000

6( Pa+nt of hospita% sa%ari#s an* =ag#s, P8D,DDDA#ministrati*e an# ,enera) 685000!+se!)# an# "r!"erty 450006r!$essi!na) 'are !$ "atients 220000ietery 0000O+t"atient an# emer,en'y 30000Oter e"enses 50000

Cas 64900007( Pa+nt of hospita% #2p#ns#s oth#r than sa%ari#s an* =ag#s

A#ministrati*e an# ,enera) 620000!+se!)# an# "r!"erty 100006r!$essi!na) 'are !$ "atients 25000ietery 7500O+t"atient an# emer,en'y 2500Oter e"enses 10000

Cas 675000( 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 e"ense 60000

Genera) $+n# %a)an'e 50000Cas

6110000

9 A#H+stments re?+ire# !n e'em%er 3120Fa))!(an'e $!r +n'!))e'ti%)e a''!+nts 62500

>+ne 21 2014 6a,e 20


21/25



a''r+e# sa)aries an# (a,es 65000

'ar,es $!r #e"re'iati!n !n "r!"erties 'arrie# as assets %y ")ant $+n#s 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) $+n# %a)an'e an# a 're#it t! 'as In teeam")e re'!,niti!n !$ reim%+rsement #+e t! ")ant $+n#s is re"!rte# %y a 're#it t!a "aya%)e te "aya%)e (!+)# %e ')!se# (en te 'as is trans$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 21 2014 6a,e 21


22/25



''( 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+

PIn '!nsi#erin, te "resentati!n !$ !s"ita) re*en+es $!r statement "+r"!ses te$!))!(in, ')assi&'ati!ns are +se#,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, e"enses it re'!,ni.es te $!))!(in, ')assi&'ati!ns

a#ministrati*e an# ,enera)#ietary

!+se!)# an# "r!"erty

"r!$essi!na) 'are !$ "atients

!+t"atient an# emer,en'y

!ter e"enses

5( TE)PORARJ FUN1C!m"!se# !$ '+rrent res!+r'es tat (i)e a*ai)a%)e $!r '+rrent "+r"!ses are s+%He't t!'ertain )imitati!ns in teir +se

!r eam")e 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"!ses s+' as resear' a me#i'a) )i%rary !r n+rses trainin,(!+)# %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 21 2014 6a,e 22


23/25



1 Re'ei"t !$ 'as ,i$t t! %e +se# $!r me#i'a) resear' 610000Cas 6100000

Tem"!rary $+n# A %a)an'e 61000002 6+r'ase !$ se'+rities 685000

Tem"!rary in*estment -$+n# A 685000 Cas 685000

3 Re'ei"ts !$ 'as ,i$ts t! %e +se# $!r %!!+ne 21 2014 6a,e 23


24/25



1 R#$#ipt of :on*s in #sta:%ishnt of En*o=nt f"n* ' as fo%%o=s@ Co( :on*s Fa$# ;a%"#, P>DDDDD, &arK#t ;a%"# on *at# of transf#r,P87D,DDD(

In*estments in %!n#s at $air *a)+eDn#!(ment $+n# 1E 61000000In*estments-+nam!rti.e# %!n# "remi+mDn#!(ment $+n# 1E 50000In*estments-+nam!rti.e# %!n# #is'!+nt Dn#!(ment $+n#

1E 630000n#!(ment $+n# 1 %a)an'e

1020000( R#$#ipt of $ash in #sta:%ishnt of En*o=nt f"n* ,

P>DDDD(En*o=nt in$o is to :# "s#* for sp#$i#* r#s#ar$hpro#$ts(

Cas 6250000n#!(ment $+n# 1

%a)an'e6250000

/( P"r$has# of 'DDD shar#s of Co(T pr#f#r#n$# shar#s, P8D,DDD(

In*estment in "re$eren'e saresDn#!(ment$+n# 2E

6240000

Cas6240000

8( Co%%#$tion of int#r#st :+ g#n#ra% or $"rr#nt f"n* that in$%"*#s P>DDDr#i&:"rsa:%# to En*o=nt f"n* ' for :on* pr#&i"& a&ortization(

+e $r!m ,enera) !r '+rrent $+n# 65000In*estments-+nam!rti.e# %!n#

"remi+mDn#!(ment $+n# 1E65000

>( a%# of Co( :on*s at fair ;a%"#, P>D,DDDCas 6250000In*estments-+nam!rti.e# %!n# #is'!+nt

Dn#!(ment $+n# 1E

15000

In*estments-at %!n#s at $air*a)+eDn#!(ment $+n# 1E

6250000

n#!(ment $+n# 1 %a)an'e 15000

1(PLANT FUN1T=o Gro"ps of P%ant R#so"r$#s1 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# !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!"erties '!nstr+'ti!n in "r!,ress !r

'+rrent "r!"erty a'?+isiti!ns s+' !%)i,ati!ns (!+)# %e re'!,ni.e# in te ")ant $+n#sF"n*s ar# :a%an$#* :+ t=o p%ant f"n* :a%an$#s@1 In*estment in ")ant 2 Reser*e $!r ")ant im"r!*ement an# e"ansi!n

Pr#par# th# #ntri#s of th# fo%%o=ing transa$tions for th# p%ant f"n* of 0ospita%@

1 A'?+isiti!n !$ )an# '!nstr+'ti!n !$ !s"ita) &nan'e# %y ,i$ts !$ 'as 61500000an# 'as raise# tr!+, a m!rt,a,e 61000000

>+ne 21 2014 6a,e 24


25/25



2 Re'ei"t !$ ,i$ts !$ 'as !$ 650000 an# se'+rities *a)+e# at 6100000 $!r ")antim"r!*ement an# re")a'ements

3 A'?+isiti!n !$ e?+i"ment 630000 m!rt,a,e 610000004 6ayment %y ,enera) $+n# !$ m!rt,a,e insta))ment 6500005 A#H+stments re?+ire# !n e'em%er 3120F:

aE a''r+e# in*estments !n in*estment61500%E #e"re'iati!n $!r ")ant assets $!r year685000'E am!+nt re'!*era%)e $r!m ,enera) $+n# e?+a) t! #e"re'iati!n !n ")antassets

>+ne 21 2014 6a,e 25

Documents

Accounting for NPOs # 1 (NOT FOR PROFIT ORGANIZATION)