Course Outline of Record

Item	Value
Curriculum Committee Approval Date	03/11/2020
Top Code	050200 - Accounting
Units	3 Total Units
Hours	54 Total Hours (Lecture Hours 54)
Total Outside of Class Hours	0
Course Credit Status	Credit: Degree Applicable (D)
Material Fee	No
Basic Skills	Not Basic Skills (N)
Repeatable	No
Grading Policy	Standard Letter (S),  Pass/No Pass (B)

Course Description

A course utilizing the theory and fundamentals of accounting for and the administration of not-for-profit organizations and governmental entities. Application of accounting principles for both not-for-profit organizations and government entities. Preparation and analysis of various financial statements and introduction to the required not-for-profit federal, state and local tax filings. PREREQUISITE: ACCT A100, ACCT A101, or ACCT A101H. Transfer Credit: CSU.

Course Level Student Learning Outcome(s)

1. Demonstrate knowledge of appropriate fund accounting for the general business transactions of a not for profit entity.
2. Recognize the organizational structure and legal existence of not for profit organizations.

Course Objectives

• 1. Differentiate Fund accounting from Generally Accepted Accounting Principles and determine the appropriate use of Fund Accounting.
• 2. Recognize the organizational structure and legal existence of non for profit organizations and how they differ from government organizations.
• 3. Prepare and analyze basic reports of financial position for not for profit organizations.
• 4. Describe and perform accounting functions for a not for profit entity.
• 5. Discuss and complete the process of being legally designated as and maintaining the distinction, a not for profit entity with Federal, State and Sales tax exempt status.
• 6. Identify basic federal state and sales tax filing requirements.
• 7. Recognize and discuss the various types of not for profit entities.
• 8. Understand the concepts of Fiduciary and Fiscal responsibility and ethical behavior.

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Lecture Content

1. Introduction to Not-for-Profit entities                    Definition Purpose and Organizational Structure        Corporation or not                Board of Directors - Differences from For-Profit organizations                GAAP for Not-for-Profits        Fund vs. Governmental Accounting                Public Support vs. Private Support        Types of Not-for-Profits        Charities        Churches        School Boards                Governments                Private Foundations        Trade Associations        Hospitals and other Healthcare Organizations2. Tax and Regulatory Considerations        Internal Revenue Service                        Basis of Exemption                        Filing Requirements                                Unrelated Business Income      ;   State and Local Regulations        Employment Taxes3. Financial Statements, the Reporting Entity, and General F.inancial Reporting Matters        Financial Statements                        Statement of Financial Position        Statement of Activities        Statement of Cash Flows        Statement of Functional Expenses            Restrictions, Designations and other Limitations on Liquidity            Reporting related entities            Use of fair value measures4. Revenue/Resources            Revenues vs. gains            Recognition, Measurement, and Display of Revenue            Contributions/Exchange Transactions, including services and gifts in kind            Fundraising            Membership Dues            Grants, Awards, and scholarships            Naming Opportunities            Donations, Donor Imposed Restrictions5. Expenses, Gains and Losses  nb          Program Services, Management and General, Membership Development            Fundraising costs, sale of goods or services and special events            Financial Aid and other reductions in amounts charged            Contributions made to others            Contributed use of facilities            Gains and Losses6. Fiscal Responsibility            Sarbanes Oxley            Ethics            Fiduciary responsibility            Governance            Board Duties and Responsibilities            Use of Restricted Assets            Compensation7. Assets and Liabilities            Investments, Donor Restricted or not            Endowments            Promises to give unconditional vs conditional            Intention to give            Contributions Receivable            Inventory, Prepaid expenses and Deposits            Property Plant and Equipment and Depreciation            Debt and other liabilities8. Unrelated Business Income            Definition            Tests to determine if activity is actually UBI9. Fundraising            Gaming and Raffle regulations in CA            Professional Fundraising contracts            Solicitation rules            Gaming10. Sales and Use, Employment, and Property Tax            No Blanket exemption, specific exemptions only            Sales vs Use tax            Activities of  Non-Profits, taxable vs non-taxable            Sellers permit            Filing requirements            Unemployment Insurance            Registering with Attorney General in California            Property Tax Exemptions in CA11. Applying for no nprofit status            Umbrella exemption            Types of 501c            State not automatic12. Governments Schools School Boards            Difference in accounting structure            Mission statement and purposes13. Private Foundations            Legal designation            Difference from 501c314. Private organizations            Legal designations            PTA/PTO, Booster Clubs

Method(s) of Instruction

• Lecture (02)
• DE Live Online Lecture (02S)
• DE Online Lecture (02X)

Instructional Techniques

A. Lecture including PowerPoint slides, handouts, text reading, problems and appllication of concepts. B. Individual and group problem-solving activities C. Guest Lecturers D. Internet assignments

Reading Assignments

Materials from State and Federal regulartory agencies. Materials from text and class resources.

Writing Assignments

1. Analysis of accounting data 2. Preparation and Interpretation of financial reports 3. Case problems in not for profit accounting

Out-of-class Assignments

Analysis of various accounting data Preparation and interpretation of financial and regulatory reports Case problems in not for profit accounting

Demonstration of Critical Thinking

A. Exams on course content testing recall, comprehension, analysis and problem solving skills B. Computing assignments manually, written assignments, group activities involving selected topics appropriate to subject matter. C. Midterm and final examination

Required Writing, Problem Solving, Skills Demonstration

A. Analysis of accounting data B. Interpretation of financial reports C. Case problems in accounting

Eligible Disciplines

Accounting: Masters degree in accountancy or business administration with accounting concentration OR bachelors degree in business with accounting emphasis or business administration with accounting emphasis or economics with an accounting emphasis AND masters degree in business, business administration, business education, economics, taxation, or finance OR the equivalent. Masters degree required. (NOTE: A bachelors degree in accountancy or business administration with accounting concentration, with a CPA license is an alternative qualification for this discipline)

Textbooks Resources

1. Required America Institute of Certified Public Accountants. Audit Accounting Guide Not-for-Porift Entities, March 2014 ed. New York: AICPA, 2014 2. Required Warren Ruppel. Not for Profit Accounting Made Easy, Most recent ed. Wiley, 2007 Rationale: Option for most up to date information 3. Required Murray Dropkin, James Halpin. Bookkeeping for Nonprofits: A Step-by-Step Guide to Nonprofit Accounting, ed. Wiley, 2005 Rationale: Additional Option

Other Resources

1. California Attorney Generals Guide for Charities 2. California State Board of Equalization, Publication 18, Nonprofit organizations 3. Various Internal Revenue Service publications, forms, and Expempt Organization newsletters. 4. Financial Accounting Standards Board website, FASB.org