Australian Accounting Standards for Non Profits

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GSN486Accounting issues for philanthropic and
nonprofit organisations
Course Co-ordinator Dawn Butler Contact
info d3.butler_at_qut.edu.au 3864
9298 Lecturers Ted Flack and Pat Hoiberg

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Accounting for NPOs

• Nonprofit organisations (NPOs) have unique
  accounting issues and transactions.
• But there are inadequate accounting standards to
  deal with these transactions. Because of the lack
  of accounting standards, NPO financial reporting
  contains many inconsistencies and
  incompatibilities.
• NPO financial reports, therefore, are evaluated
  within the framework of existing accounting
  standards, which are written for profit (or govt)
  organisations and which do not accurately
  reflect NPO activities and achievements.

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Approach in course

• Dont worry! Many accounting courses start with
  debits and credits!
• This course doesnt do that. It goes in at a
  much higher level, and concentrates on financial
  reports of NPOs.
• By the end of the course, youll have expertise
  in reading and interpreting annual financial
  reports. Youll be able to assess the financial
  position and financial performance of any NPO.

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Whats special about accounting for NPOs?

• Some of the specific problems that are faced by
  NPOs include
• fund accounting
• accounting for government grants
• accounting for donations, donations in kind and
  donated assets
• accounting for pledges
• accounting for volunteer time and
• depreciation (of donated assets).

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Queensland NPO Chart of Accounts
Over the past two years, QUT/CPNS has made a
special contribution to NPO accounting in
Australia. So we can claim a special
expertise. We have developed a Chart of Accounts
for small and medium sized NPOs. This work was
done in collaboration with Queensland Treasury,
five major government departments, and a number
of NPO accounting practitioners.
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Queensland NPO Chart of Accounts

• The Chart of Accounts has been specially
  developed for NPOs who receive government funding
  to perform social services.
• Each government department has its own
  requirements, and its own categories to be
  reported on.
• Some NPOs have multiple accountabilities. There
  is at least one NPO which has to report on 37
  grants from different government departments.
  They complain that they spend their time
  reporting rather than providing services!
• .

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Queensland NPO Chart of Accounts

• Whats in the Chart of Accounts ?
• It simplifies and standardises categories for
  financial records,
• It includes a data dictionary,
• It provides references to Accounting Standards
  where relevant,
• It allows for the latest legislation and
  regulations.
• The Chart will simplify the process of acquitting
  government grants, and will also improve the
  accountability of NPOs.
• It has been welcomed by both government
  departments and the nonprofit sector.

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GSN486 outcomes

• By the end of the GSN486 course, youll be able
  to judge the value of Queensland NPO Chart of
  Accounts.
• Youll know more about problems and suggested
  solutions for the accounting treatment of
  financial activities of NPOs.
• This will enhance your contribution to your own
  organisation in planning, decision making, and
  importantly being accountable.