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• Suesan R. Patton


  UHY LLP
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• Library of Congress Cataloging-in-Publication Data
• ISBN-13: 978-0-13-277601-1
• ISBN-10: 0-13-277601-4
• 1. Fund accounting. 2. Finance, Public—Accounting. 3. Nonprofit organizations—Accounting.
• I. Patton, Terry K. II. Patton, Suesan R. III. Introduction to governmental and not-for-profit accounting. IV. Title.
• HF5681.F84R39 2013
• 10 9 8 7 6 5 4 3 2 1
• Governmental and not-for-profit organizations represent a significant portion of our total economic activity
• Government consumption expenditures account for more than 20 percent of gross domestic product, some $2.9 trillion of the $14.1 trillion of gross domestic product in 2009
• When payments to individuals are included, total state and local government current expenditures were more than $2.0 trillion, and total federal government outlays were nearly $3.0 trillion in 2008
• The total expenses of Internal Revenue Code 501(c)(3) organizations (religious, educational, charitable, scientific, and literary entities) were $1.3 trillion in 2007
• Why is governmental and not-for-profit accounting covered separately


  These entities have distinguishing characteristics that require specialized accounting and financial reporting
• Learning Objectives


  • Understand the distinguishing characteristics of governmental and not-for-profit organizations
  • Understand their operating environment
  • Understand the needs of users of their accounting information
  • Understand the objectives of their financial reporting
  • Understand the distinctive characteristics of their accounting and financial reporting
  • Understand the jurisdiction of their accounting standards-setting bodies
• Government, and not-for-profit organizations—represent a significant portion of our total economic activity
• Governmental and not-for-profit accounting


  Covered separately from business enterprise accounting
• Many aspects of governmental accounting and most aspects of not-for-profit accounting are no different from those of business enterprise accounting
• Governments


  Financed primarily by taxes
• Not-for-profit entities

  Receive significant amounts of contributions
• Governmental and not-for-profit entities


  • Operate in an environment different from that of business enterprises
  • Users of their accounting data have somewhat different information needs
• Legally adopted budget


  Plays a particularly significant role in governmental financial activities