Purpose: To provide an overview of the fundamentals for basic fund accounting and the financial reporting structure within the context of higher education accounting, Generally Accepted Accounting Principles (GAAP) and the standards to which the university is audited.
This will help users understand how the Finance System, general ledger and chart of accounts are set up to meet these requirements. Since basic fund accounting is driven by the need to classify resources, this chapter also covers revenue accounting.
Pertinent Guidelines &听Regulations
GAAP &听GASB
Generally accepted accounting principles (GAAP) is a technical accounting term that encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. These conventions, rules and procedures provide a standard by which financial presentation can be measured.
In the United States, two private-sector entities set the accounting standards for businesses:听the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). FASB standards apply to most corporations, for-profit entities and some non-profit entities, such as private universities. Public universities and other state and local governments are subject to GASB accounting and financial reporting standards.
Higher Education Financial Reporting GAAP
Colleges and universities are required to follow GASB , The Financial Reporting Entity: Omnibus, unless otherwise specified. This statement supersedes Statement No. 34 and 35, which had been in effect since November 2002. In November 2010, GASB issued Statement No. 61 to improve financial reporting for a governmental financial reporting entity. Prior statements were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those statements. Provisions of the statement are effective for financial statements for periods beginning after June 15, 2012.
CU鈥檚 Financial Statements in Action
For examples of CU鈥檚 financial statements, and how we record revenues and expenses discussed in this chapter, refer to the Office of University Controller鈥檚 website on .
听
Proper fund accounting can be very complex. Yet, it forms the basis for how we measure our success, communicate our financial health to interested parties, and ensure proper stewardship of the resources we have been given. At 香港六合彩, we take this responsibility very seriously. For more information about any topics in this chapter, reach out to the听Campus Controller鈥檚 Office.