Ringkasan Akuntansi Sektor Publik

Nama :

Anton Wijaya

Natalia Susanto

34120077

31120078

Kelas : H
Dosen : Bambang Sugiarto
Classification of Organizations :
1. Voluntary Health and Welfare Organizations is organizations which formed to
provide various kinds or health, welfare, and community services financed
primarily by voluntary contributions from the public (for no fee or low fee) to
various segments of society.
VHWOs are tax exempt, organized for the public benefit, supported
largely by public contributions, and operated on a not for profit basis
The features that distinguish VHOWs (from ONPOs) are :
i. Their purpose : to meet a community health, welfare, or other social
service need
ii. Their voluntary nature : no fee is charged, or only a very small fee in
proportion to the service provided is charged
iii. Their relationship to response provides : providers of resources are
not the primary reciptent of services of benefits of a VHWO
Some ONPOs may provide services similar to those provided by
certain VHWOs but ONPOs more often finance the services with user
charges or membership fee charges to the primary recipients of the
services
2. Other Not for Profit Organizations : organizations that operate essentially as
business enterprises for the direct economics benefit which do not include :
hospital, colleges, universities and voluntary health and welfare organizations
The term ONPOs is used for the following types of organizations and
other truly not for profit organizations :
i. Cemetery
organizations
ii. Civic organizations

iii. Franternal
organizations
iv. Libraries
v. Museums
vi. Etc.

vii. Classes of Net Assets

viii. The accounting equations is Assets = Liabilities + Net Assets,
Net Assets (Assets less liabilities) be reported in three classes,
these are :

Unrestricted net assets : the portion of net assets not temporarily of

permanently restricted
Temporarily restricted net assets : the portion of net assets whose use is
limited by donor-imposed restrictions on the timing and purpose of use of the
donated resources
Permanently restricted net assets : the portion of net assets whose use is
limited by donor-imposed restrictions that are permanent in nature, the
restrictions cant be fulfilled by either passage of time or by actions of the
organization
ix. Non-GAAP accounting and reporting requirements
x. Non for profit organizations have numerous ongoing needs for
accounting and reporting information other than for annual
financial reporting on a GAAP basis. Ex : non for profit
organizations are required by the Internal Revenue Service to file
Form 990, Return of Organizations Exempt from Income Tax.
Donors and grantors sometimes require special reports from
organization demonstrating thah restricted grants and
constributions have been used in accordance with contributions
or grant programs or agreements as well as with any other laws
or regulations pertinent to the contribution or grant.
xi. Some ONPOs may use fund accounting because :

1. They have material amounts of property, plant, and equipment, or

2. Capital additions are budgeted, but depreciation is not budgeted
xii. Basis of Accounting
xiii. Both VHWOs and ONPOs are required to report their financial
statements on the economic resources measurement focus and
the accrual basis of accounting, that is accounting for revenues
and expenses.
xiv. SFAS 117 Financial Statements
xv. The Financial Statements required by SFAS No. 117 for
nongovernment ONPOs are the :
1. Statement of Financial Positions
2. Statement of Activities
3. Statement of Cash Flow
xvi. SFAS No. 117 does not prescribe a specific balance sheet format,
nor does it require or prohibit reporting an organizations data
disaggregated by funds or classes of net assets. It requires

aggregated totals of assets, liabilities, and net assets to be

reported.
xvii. Investment :
cost.

in ONPOs accounting are recorded initially at

xviii. Pledge : Organizartions should recognize pledges receivable in

the accounts if the pledges are unconditional promises to give.
xix. Fixed Assets : Fixed (capital) assets of all NPOs are recorded at
cost of if donated at fair market value at donation
xx. Collections : Some NPOs have assets that qualify as collections.
Collections are defined in SFAS No. 116 as : Works of art,
historical treasures, or similar assets that are held for public
exhibition, education, or research in furtherance of public
service rather than financial gain, proctected, and cared
xxi. NPO must capitalize works of art, historical treasures, and
similar assets that do not meet the criteria to a collection. For
collections, three accounting options are permitted :
1. Not capitalizing any collections
2. Capitalizing collections acqruired after adoptions of SFAS No. 116 but not
those acquired prior to that date.
3. Capitalizing all collections regardless of when acquired
xxii.
xxiii. Trusts and Similar Agreements
xxiv. Revocable trusts and similar agreements are treated as
conditional promises to give. Irrevocable perpetual trusts
established for the sole benefit of a non-for-profit organizations
increase permanently restricted net assets. Revenue and gains
are reported by source. Expenses classified between program
services and supporting services, are reported by function.
xxv. Increase (decrease) in unrestricted net assets regardless of
the format or intermediate operating measures that are used. All
expenses are reported as changes in unrestricted net assets
xxvi. Revenues and Expenses Reported at Gross Amounts
xxvii. Revenues and expenses of NPOs must be reported at gross
(rather than net) amounts. Gains and losses may be reported
net of related amounts. Revenues and expenses result from
transactions that are part of an organizations ongoing major or
central activities

xxviii. Contributions
xxix. Contributions are a significant revenue source for most NPOs,
contribution as follow : an unconditional transfer of cash or
other assets to an entity or a settlement or cancellation of its
liabilities in a voluntary non reciprocal transfer by another entiry
acting other than as owner.
xxx. Four key features that distinguish contributions from other
transactions such as exchange transactions and agency
transactions are that contributions are :

Unconditional
Nonreciproclal

Voluntary
Not an ownership investment

Pledges, Membership Dues, and Other Fees

Conditional pledges and conditional transfers of assets are

recognized as contributions revenue when the conditions are met.
Unconditional pledges due in future years, even if not restricted as
to use, are reported as restricted support unless the donor specifies
that the contributions are intended to support the current year

Membership dues that are exchange transactions are recognized as

revenue over the period(s) that the benefits are provided. Dues that
are contributions should be recognized as revenue when received

Special Fund - Raising Events

NPOs often hold special fund-raising events such as dinners bazaars,

telethons, and concerts to generate contributions. Revenues from these
events should be reported at the gross amount unless the event is
incidental or peripheral. If the special event is incidental or peripheral.
Gains. Not revenues. Should be reported. Gains from special fund-raising
events may be reported either gross or net of direct costs of holding
event.

Direct costs of holding special fund-raising events that are reported gross
may be reported as an expense deduction from the revenues-just as cost
of goods sold is deducted from sales.

Investment income and gain/loss

Investment income reported and gains and loses recognized on

investment transactions are determined partly by the investment
valuation method(s) used.

Donated materials, facilities, and services

The fair market value of significant amounts of materials donated to NPOs

should be reported as contributions when the materials are received.

Donated services should also be reported both as contributions and as

assets or expenses if the services create or enhance non-financial assets.
Donated services are also recognized if they :

Require apecialized skills

Are provided by individuals with those skills and
Would typcally have to be purchased if they were not donated to the
organization.

Net assets released from restrictions

Perhaps the most unique reporting feature of non-goverment, NPOs is the

reporting of "net assets released from restrictions." Net assets released
from restrictions is reported when the NPO meets donor restrictions or
resource use. This item is presented both as an addition to unrestricted
net assets and as deduction from temporarily restricted net assets.

Recall from the discussion on contributions that some temporary

restriction are met in the same period that temporarily restricted
contributions or investment earnings are recognized as revenues.

Expenses

Expenses of non-goverment NPOs are always reported as changes in

unrestricted net assets. The expenses should be categorized appropriately
between (1) program service expenses and (2) supporting services
expenses.

Program services program services expenses are those that relate directly
to the primary missions of the organization. Such expenses should be
classified by functions, using terms that best convey the primary thrust of
the programs of the organization.

Supporting services supporting services expenses do not relate directly to

the primary missions of the organization, including management and
general, fund-raising, and othe costs not associated directly with
rendering program services.

Management and general costs. Are not identifable with a specific

program or fund-raising activity but relate to the organization's existence
and effectiveness.

Fund-raising and other supporting services. Are incurred to induce

contributions of money, securities, real estate or other properties,
materials. Or time to the organization.

Costs of joint activities must be reported as fund-raising expenses unless

the activity meets three conditions related to the purpose of the activity,
the audience to whom the activity is addresed, and actions that the
audience is asked to take. These conditions are :

At least one purpose of the joint activity must be to accomplish some program
function that is part of the NPOs mission or to fulfill management and general
responsibilities of the organization.

The audience for the activity must not be selected based on the ability or the
likelihood to make contributions.
The activity must motivate the audience to take specific actions that support
program goals or that fulfill a management and general responsibility.

When all three conditions are met, the cots of joint activities that are
identifiable with specific program or management and general functions
are allocated to those functions so that each is reflected appropriately in
the organization's operating statement.

SFAS no. 117 also requires non-goverment NPOs to present a statement of

cash flows-in accordance with the with the requirements of SFAS no.9.
"Statement of cash flows." The most unique items reflected In this
statement compared to a typical business cash flow statement, are the
following :

Reporting of contributions and investment earnings that are restricted for

capital asset-related, endowment, or other long-term purposes as financing
activities.
Reporting of changes in the amount of cash restricted for long-term purposes
as investing activitiers.
Reconciliation of the total changes in net assets from the statement of
activities to the non cash flows from operating activities.

VHWOs are required to present a statement of functional expenses. This

statement presents a detailed analysis of the expenses section of the
statement of activities by object class or type of expense. Note that the
headings correspond to the "program services" and "supporting services"
expense categories of the statement of activities. The detailed statement
of functional expenses is optional for other non-goverment NPOs.

Non-goverment VHWO and ONPO accounting and reporting illustration

transactions and entries of the illustrative entity are presented in this
section. The entries illustrate most of the principles discussed thus far.
Support result from non-reciprocal transactions it is essentially a synonym
for contributions.

Balance sheet

Two matters are worthy of special attention. First, financial resources

restricted for long-term purposes are not reported as cash and cash
equivalents. They should be reported as non-current assets if a classified
balance sheet is presented. Therefore for example, the beggining and
ending cash balances reported are the sums of the unrestricted cash and
the cash restricted for specific current purposes-education and research.

The financial resources restricted for plant purposes in the trial balanced
are reported as "assets restricted for plant purpose." In the balance sheet.
Likewise, the financial resources restricted for endowment in the trial
balance are reported as " assets restricted for endowment" in balnce
sheet.

Operating statement

The amount reported for contributions under "changes in unrestricted net

assets" is the sum of the balances of the unrestricted support accounts for
contributions, donated materials, donated facilities, and donated service.
Note also :

Special events are reported as revenues, with direct costs of the event
deducted immediately alternatively, the direct costs could have been reported
under expenses.
All expenses are reported as changes in unrestricted net assets.
Program services and supporting services expenses are reported by function.
"Net assets released from restrictions" are reported as an increase in
unrestricted net assets and as a corresponding decrease in temporarily
restricted net assets. The net effect is zero on changes in (total) net assets.

The statement of activities of the american red cross in the "16-1 in

practice" graphic presents this statement in a columnar format, which is
an equally acceptable alternative to the "pancake" format used. Three
noteworthy benefits of this format are that it:

presents the total amount of revenue from each revenue source in addition to
the detail by category of net assets changed.
emphasizes that expenses are reported as changes in unrestricted net assetsnot as changes in temporarily restricted or permanently restricted net assets.
highlights the offsetting relationship between (1) the increase in unrestricted
net assets and (2) the decrease in temporarily restricted net assets for net
assets released from restrictions.

Statement of cash flows

Statement of cash flows, is quite similar to a busiess cash flow statement.

Note the key modifications as you review the statement :

contributions and earnings that are restricted for plant or endowment purposes
are classified as financing activities.
the decrease in cash restricted for long-term purposes is classified as an
investing activity.
operating cash flows are reconciled with the change in net assets instead of
with net income.

Statement of functional expenses

The statement of functional expenses is a basic, required financial

statement of VHWOs. This statement presents the expenses incurred for
each program or functioin in detail by object class. Again, this statement
is optional for ONPOs.

Concluding comments

VHWOs and ONPOs encompass a myriad of diverse types of NPOs. Nongoverment VHWOs and ONPOs. Goverment VHWOs and ONPOs are
required to apply the same reporting principles and pactices as all other
goverment entities.