BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Accounting

Date & Time
  • event Date

    Thursday, August 20, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$197.00
CPE
ALL

This course will provide nonprofit finance professionals and their advisers with a review of current trends related to statements of functional expenses (SFEs) and best practices for creating an accurate account of functional expenses.

Faculty

Alyssa Hill
Partner
Carr, Riggs & Ingram, LLC

Ms. Hill has more than 20 years of public accounting experience with an emphasis in nonprofit and governmental entities. Her experience includes health and welfare organizations, foundations, institutions of higher education, and special-purpose districts. Ms. Hill also has extensive experience with organizations that receive federal and state funding and are subject to single audit. In addition to her expertise in the nonprofit sector, she has numerous years of experience in providing accounting and audit services to all types of companies including manufacturing and distribution companies. Ms. Hill an instructor for the Non-Profit Finance Certificate Program offered through Rice University’s Center for Philanthropy and Non-Profit Leadership.

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Alexander K. Buchholz
Partner
PKF O'Connor Davies, LLP

Mr. Buchholz has more than 15 years of experience in public accounting, including with a “Big Four” accounting firm. He is responsible for the development of the audit approach, supervision of staff as well as the establishment and maintenance of the engagement budget. Additionally, he is responsible for managing the audit so that it is performed on a timely basis with as little intrusion to client operations as possible. Mr. Buchholz’ expertise is in single audits and internal control/compliance audits. His industry experience is in healthcare and not-for-profit entities. He is also an adjunct professor at Brooklyn College of the City University of New York in the Department of Accounting where he teaches undergraduate and graduate courses in accounting and auditing. He also teaches at the School of Professional Studies and Lehman College of the City University of New York.

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Description

Donors, government regulators, watchdog agencies, and other parties pay close attention to the cost ratios and expense trends unveiled in a nonprofit's SFE. The preparation of an accurate SFE under the applicable standards is vital for nonprofits and advisers.

A well designed SFE demonstrates the effectiveness of a nonprofit's controls over its administration and fundraising costs. It divides total expenses into the program, management and general catagories, fundraising categories, and also into functional and natural categories. The statement must meet the terms of FASB (ASU) 2016-14.

Correctly preparing an SFE is quite challenging, especially when it comes to determining functional classifications and appropriate allocation methods. At the same time, conclusions drawn by readers of this statement can impact charitable solicitations for better or worse.

Listen as our panel of experienced advisors explains the critical data, rules, and best practices for correctly preparing an SFE for a nonprofit organization.

Outline

  1. Standards governing the preparation of an SFE
    • FASB ASU 2016-14
    • GAAP
    • Other standards
  2. Categorization of a nonprofit's expenses
    • Determining functional categories
    • Program expenses
    • Management and general expenses
    • Fundraising expenses
  3. Best practices with SFEs
  4. How outside parties use SFEs
    • What is the IRS watching
    • What donors are watching
  5. Common errors in functional reporting

Benefits

The panel will cover topics like these and other vital issues:

  • Categorizing a nonprofit's expenses
  • Avoiding common errors in functional reporting
  • Making defensible decisions on allocating joint costs
  • Analyzing what the SFE says about the nonprofit's expense efficiency
  • Understanding accounting standards that govern the preparation of an SFE

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify methods of allocating expenses
  • Ascertain the difference between functional and natural categories
  • Determine required disclosures related to the SFE
  • Decide how to separate program and supporting services

  • Field of Study: Accounting
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of cost allocation principles; familiarity with government standards for nonprofit organizations receiving federal grant monies

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.