I. General Information

1. Course Title:
Accounting for Governmental and Not-for-Profit Entities

2. Course Prefix & Number:
ACCT 2137

3. Course Credits and Contact Hours:

Credits: 3

Lecture Hours: 2

Lab Hours: 2

4. Course Description:

This course focuses on the application of generally accepted accounting principles to state and local governmental units, health care organizations, and other not-for-profit entities. Topics covered include the governmental fund accounting cycle, budget considerations, financial statement preparation and analysis, and special accounting considerations for health care and other not-for-profit organizations.

5. Placement Tests Required:

Accuplacer (specify test):

No placement tests required

Score:

6. Prerequisite Courses:

7. Other Prerequisites
Accounting Principles II (ACCT 2012)

8. Prerequisite (Entry) Skills:
Application of basic foundational knowledge of generally accepted accounting principles.

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

1. Course Equivalency - similar course from other regional institutions:

M State, ACCT 2630 Fund/Nonprofit Accounting, 3 credits
Bemidji State University, ACCT 3300 Government Accounting, 3 credits
MN West Community & Technical College, ACCT 2120 Fund/Nonprofit Accounting, 3 credits

III. Course Purpose

1. Program-Applicable Courses – This course is required for the following program(s):

Accounting, AAS Degree

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Analyze and follow a sequence of operations	Follow a detailed set of instructions to complete a comprehensive computerized practice set.
Apply abstract ideas to concrete situations	Analyze an actual city, county, or state's comprehensive annual financial report and answer questions about it.
Utilize appropriate technology	Complete a comprehensive computerized practice set utilizing state-of-the-art software.

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• Compare and contrast the objectives of governmental, not-for-profit, and for-profit accounting and financial reporting.
• Identify sources of financial reporting standards for non-business entities. 
• Define budgeting and explain how the budgetary process provides a detailed plan for achieving the entity's objectives.
• Identify the major fund categories used in governmental accounting and the fund types within each major fund category.
• Record various fund activities.
• Discuss accounting and financial reporting for special-purpose entities, including public colleges and universities.
• Discuss accounting and financial reporting for not-for-profit organizations, including private colleges and universities.
• Discuss accounting and financial reporting for health care providers, both not-for-profit and for-profit entities.
• Prepare basic financial reports for governmental and not-for-profit entities.
• Describe audit requirements and standards for governmental and not-for-profit organizations.

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities
• Characteristics of Governmental and Not-for-Profit Entities
• Objectives of Financial Reporting for Non-business Entities
• Sources of Financial Reporting Standards
• Expanding Scope of Accountability Reporting
2. Overview of Financial Reporting for State and Local Governments
• The Governmental Reporting Entity
• Fund Accounting Overview
• Overview of the Comprehensive Annual Financial Report
3. Modified Accrual Accounting: The Role of Fund Balances and Budgetary Authority
• Review of Accounts
• Expenditure Cycle
• Budgetary Accounting
4. Accounting for the General and Special Revenue Funds
• Inter-fund Transactions
• Review Illustrative Journal Entries, Closing Entries, and Year-End Financial Statements
5. Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent
• Accounting for General Capital Assets
• Capital Projects Funds
• General Long-term Liabilities
• Debt Service Funds
• Permanent Funds
• Financial Reporting for Governmental Funds
6. Proprietary Funds
• Internal Service Funds
• Enterprise Funds
• Proprietary Fund Financial Statements
7. Fiduciary (Trust) Funds
• Agency Funds
• Trust Funds
• Investment Pools
• Pension Trust Funds
8. Financial Reporting of State and Local Governments
• Governmental Financial Reports
• Preparation of Basic Financial Statements
• Converting Accounting Information from the Modified Accrual to the Accrual Basis of Accounting
9. Accounting for Special-Purpose Entities, Including Public Colleges and Universities
• Reporting Standards
• Reporting and Accounting Issues
• Illustrative Entries and Financial Statements
10. Accounting for Private Not-for-Profit Organizations
• Types of Organizations
• Not-for-Profit Accounting and Financial Reporting
• Illustrative Entries and Financial Statements
11. Accounting for Private Colleges and Universities
• Overview of Private College and University Accounting
• Illustrative Transactions and Financial Statements
• Other Accounting Issues
12. Accounting for Hospitals and Other Health Care Providers
• Reporting and Accounting Requirements and Issues
• Illustrative Transactions and Financial Statements for Private Not-for-Profit Health Care Entities
• Financial Reporting for Governmental Health Care Entities
• Financial Reporting for Commercial Health Care Entities
13. Auditing of Governmental and Not-for-Profit Organizations
• Financial Audits by Independent CPAs
• Government Auditing Standards
• The Single Audit
14. Tax-Exempt Organizations
• Applying for Tax-Exempt Status
• Filing Requirements
• Unrelated Business Income Tax
15. Performance Evaluation
• Analysis of Governmental and Not-for-Profit Financial Statements
• Service Efforts and Accomplishments Reporting

2. Laboratory/Studio Sessions

Students practice "real world" governmental accounting using a state-of-the-art computerized fund accounting & reporting program. During this comprehensive project, students will

• form a new government entity from scratch
• journalize and post summary transactions, and
• prepare complete sets of both fund and government-wide financial statements.

Lab assignments correspond to lecture learning objectives.