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Participants explore the similarities and differences in not-for-profit and standard accrual accounting. They examine the issue of restricted and unrestricted assets and their respective impact on ratio and cash flow analysis. They assess the benefits of applying specific performance ratios and the Uniform Credit Analysis (UCA) cash flow statement in assessing not-for-profit risk. Finally, they review and identify critical considerations in projecting not-for-profit performance.
Participants explore the differences between standard accrual accounting, not-for-profit accounting, and fund accounting, including differences in terminology, format, and analytical content. They examine the fund accounting "income statement" and identify its similarities to a fully cash-based income statement as well as its differences from a standard accrual income statement. Further, Participants review the fund accounting "balance sheet" and identify its similarities and differences vis-a-vis a standard accrual balance sheet. In addition, they explore an analytical process for using both fund accounting and accrual accounting financial statement information in assessing governmental activities as well as specific business-type activities within the broader municipality.
Participants explore risk issues emerging from the comprehensive financial reports for the City of Calistoga, California and the City of Central Falls, Rhode Island. They focus on and assess a) trends and developments in revenue streams, expense categories, and bottom line "profits" and b) cash and near-cash flow statements for governmental and business-type activities. Participants identify the difficulties that confront analysts and lenders in assessing municipal activities reported on a fund accounting basis and business-type activities reported on an accrual accounting basis. Further, they examine the impact of GASB 68 implementation on reported operating results and balance sheet obligations.