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Excerpt from AAG-NFP 12.11
Expenses that are directly related to specific gross revenues may be displayed sequentially with [the related] revenues. For example, gross revenues from special events less the direct costs related to those events, followed by a subtotal, may be reported in a statement of activities.
Expenses by natural classification
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Expenses by functional classification
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|||||
Expenses:
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Expenses:
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|||||
Salaries and benefits
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$ 15,115
|
Program A
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$ 13,296
|
|||
Grants to other organizations
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4,750
|
Program B
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8,649
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|||
Supplies and travel
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3,155
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Program C
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5,837
|
|||
Services and professional fees
|
2,840
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Management and general
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2,038
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|||
Office and occupancy
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2,528
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Fundraising
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2,150
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Depreciation
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3,200
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|||||
Interest
|
382
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|||||
Total expenses
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$ 31,970
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Total expenses
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$ 31,970
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To help donors, creditors, and others in assessing an NFP's service efforts, including the costs of its services and how it uses resources, a statement of activities or notes to financial statements shall provide information about expenses reported by their functional classification such as major classes of program services and supporting activities.
Excerpt from ASC 958-720-50-1
Excerpt from ASC 958-720-45-2A
Certain costs benefit more than one function and, therefore, shall be allocated. For example, information technology generally can be identified as benefitting various functions, such as management and general (for example, accounting and financial reporting and human resources), fundraising, and program delivery. Therefore, information technology costs generally would be allocated among the functions receiving direct benefit.
Excerpt from ASC 958-720-45-2A
Activities that represent direct conduct or direct supervision of program or other supporting activities require allocation from management and general activities.
Excerpt from ASC 958-720-45-15
The relationship between functional classification and natural classification for all expenses shall be presented in an analysis that disaggregates functional expense classifications, such as major classes of program services and supporting activities, by their natural expense classifications, such as salaries, rent, electricity, interest expense, supplies, depreciation, awards and grants to others, and professional fees.
Program activities
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Supporting activities
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||||||||
A
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B
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C
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Subtotal
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Manage-ment and general
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Fund-raising
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Subtotal
|
Total expenses
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||
Expenses and losses:
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|||||||||
Salaries and benefits
|
$ 7,400
|
$3,900
|
$1,725
|
$13,025
|
$1,130
|
$960
|
$2,090
|
$ 15,115
|
|
Grants to other organizations
|
2,075
|
750
|
1,925
|
4,750
|
4,750
|
||||
Supplies and travel
|
890
|
1,013
|
499
|
2,402
|
213
|
540
|
753
|
3,155
|
|
Services and professional fees
|
160
|
1,490
|
600
|
2,250
|
200
|
390
|
590
|
2,840
|
|
Office and occupancy
|
1,160
|
600
|
450
|
2,210
|
218
|
100
|
318
|
2,528
|
|
Depreciation
|
1,440
|
800
|
570
|
2,810
|
250
|
140
|
390
|
3,200
|
|
Interest
|
171
|
96
|
68
|
335
|
27
|
20
|
47
|
382
|
|
Total expenses (Note F)
|
$13,296
|
$8,649
|
$5,837
|
$27,782
|
$2,038
|
$2,150
|
$4,188
|
$ 31,970
|
Expenses:
|
|
Program:
|
|
Salaries and benefits
|
$3,900
|
Supplies
|
1,013
|
Services and professional fees
|
1,490
|
Office and occupancy
|
600
|
Depreciation
|
800
|
Total program
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7,803
|
Management and general:
|
|
Salaries and benefits
|
1,130
|
Supplies
|
213
|
Services and professional fees
|
200
|
Office and occupancy
|
218
|
Depreciation
|
250
|
Total supporting
|
2,011
|
Total expenses
|
$ 9,814
|
Included in analysis
|
Excluded from analysis
|
|
---|---|---|
Salaries included in cost of goods sold on face of statement
|
● |
|
Facility rental costs of special events reported as direct benefits to donors on face of statement
|
● |
|
Any other expenses shown apart from functional expenses on the face of a statement that displays expenses by functional classifications
|
● |
|
Non-service component of net periodic benefit cost
|
● |
|
Expenses shown as nonoperating activity
|
● |
|
Losses (in general)
|
● |
|
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