Colleges and Universities by alicejenny


									ACCY 161 – Fall 2008Class Notes – Accounting Colleges and Universities – Chapter 16
 I.     Class Notes
             1.       Exam #3 next Tuesday
             2.       Project questions
 II.    Healthcare Review – Accounting for Contractual Allowances
        A. Accounts – just get the concept, account title not too important
             1.       Gross patient revenue
             2.       Contractual discounts – contra-revenue account
             3.       Together they sum to net patient revenue
             4.       Gross patient accounts receivable
             5.       Allowance for contractual discounts – contra-asset account.
             6.       #5 is not the same as the allowance for doubtful accounts
             7.       Together they (# 4 less #5) sum to net patient receivables
        B. Accounting – no entries on the exam
       Gross Patient Revenue                     Contractual Discounts                        Cash

                       1,000    #1                #2      200                          #3   900

                                               Allowance for contractual
            Gross Patient A/R                         discounts                     PIP – Provisional Payments

       #1     1,000                                             200 #2                            900    #3

 III. Accounting for Colleges and Universities
        A. Publicly owned colleges and universities
             1. GASB 35 requires compliance with GASB-34 like reporting
             2. Accountability
             3. Dual tracking - Why?
        B. Privately owned colleges and universities
             1. Accounting standards set by the FASB
             2. More of a stand-alone model as opposed to the combined model with GASB 34
             3. Not-for-profit accounting – visibility, not accountability

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ACCY 161 – Fall 2008Class Notes – Accounting Colleges and Universities – Chapter 16
      C. Special issues for all colleges and universities
        1. Federal reimbursements – allowable costs and cost allocations
             Examples: University of California is ~ 1/3 funded by the federal government
                           Overhead cost pool at Stanford University
        2. Valuation and reporting of “collections” like for the library can be in the notes, not on the
        3. Endowment accounting (like fiduciary fund accounting):
             a.        Fair value accounting
             b.        Restrictions
        4. Net assets and restricted assets – disclosure items
        5. Expense categories (classifications)
               a.      Instructional
               b.      Research
               c.      Support – student and academic
               d.      Support – institutional
      D. Performance measures
        1.        Gradation rates
        2.        Cost per various types of units such as:
             a.        Per instructional staff
             b.        Per full-time equivalent (FTE) student
             c.        Administrative cost per FTE faculty
      E. Financial reporting – see attached CSU statements
        1.          External
             a.        Operating expenses
             b.        Non-operating revenues and expenses
        2.          Internal – probably more important – see separate handout
             a.        Term used is
                      research” -

             b.        Example:
                      Composition of

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