Show navigation

Available in:

OnDemand Webinar

Create Effective Statements of Functional Expenses

Learn best practices for correctly preparing an effective statement of functional expenses.

Most nonprofit organizations are required to present expenses in the statement of functional expenses for reporting purposes. This includes the functional allocation of expenses between program, administrative and fundraising. On the surface this appears to be a relatively simple requirement, but proves to be a challenge faced by the industry. Understanding the GAAP and IRS Form 990 requirements, the current focus of standardsetters, challenges faced within the industry as well as the allocation methodologies available and best practices covered within this topic is an important first step in creating effective statements of functional expenses for all organizations.

Runtime: 88 minutes
Purchase Options

More Program Information

Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Current Focus on Statement of Functional Expenses

  • Update on Nonprofit Myth Initiative
  • Historical Data on Inaccurate Reporting by NFPs
  • Comparison of Two National NFPs
  • Statement of Functional Expenses as an Efficiency Measure

Industry Issues

  • Inconsistency in Reporting Among NFPs
    • Donor Focus on Overhead Rates
    • SFE as a Measure of Efficiency
    • Resource Issue
  • Common Errors
    • No Allocation of Expenses
    • Inconsistent Reporting Between Form 990 and Audited Financials
    • Contribution Revenue but No Fundraising Costs
    • Incorrect Reporting of InKind Donations
    • Allocation of Costs Annually With Standard Annual Allocation Policy
    • Fixed Percentages for Cost Allocation Rather Than Using Actual Percentages
  • Resources - Challenges
    • Finance and Accounting Challenges
    • Underlying Recordkeeping Challenges of Implementing Change
  • Fundraising for Unrestricted - Administrative Costs vs. Program

Professional Standards

  • GAAP Definitions
    • Program Services
    • G&A Expenses
    • Fundraising Costs
  • IRS Form 990 Definitions

Allocation Methodologies

  • Allocation of Costs
    • Direct; Indirect
  • Allocation Bases Commonly Used
    • Salaries; Square Footage; Headcount
  • Organizational Allocation Policies
  • Joint Costs SOP 98-2

Best Practices

  • Determination of Program Categories
  • Direct vs. Indirect Costs
  • Cost Allocation Policies and Procedures
  • Annual Review of Cost Centers - Consideration for Changes in Funding or Organizational Restructuring
  • Big Picture on Efficiency
  • Governance Aspects for Management and Board Members
Purchase Options

More Program Information

Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Webinar

This course was last revised on June 23, 2016.

Call 1-866-352-9540 for further credit information.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Purchase Options

More Program Information

Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Catherine Bendall, CPA, CGMA, PSA

Catherine Bendall, CPA, CGMA, PSA

WithumSmith+Brown

  • Partner with WithumSmith+Brown
  • More than 25 years of experience in highly complex not-for-profit and governmental audits of many types
  • Involved in audits at agencies funded by federal, state and local sources
  • Performs a number of financial audits and compliance audits, single audits, under OMB regulations
  • Familiar with the operations, accounting and reporting of not-for-profit organizations, and is also familiar with the fiscal policies and procedures surrounding those types of transactions
  • Member of the firm’s Not-for-Profit & Educations Services niche
  • Member of the American Institute of Certified Public Accountants (AICPA) and the New Jersey Society of Certified Public Accountants (NJSCPA)
  • B.S. degree in business economics, Cook College, Rutgers University
Purchase Options

More Program Information

Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

All of your training, right here at Lorman.

Pay once and get a full year of unlimited training in any format, any time!

  • Live Webinars
  • OnDemand Webinars
  • MP3 Downloads
  • Course Manuals
  • Audio Recordings*
  • Executive Reports
  • White Papers and Articles
  • Sponsored Live Webinars

Additional benefits include:

  • State Specific Credit Tracker
  • Members Only Newsletter
  • All-Access Pass Course Concierge

* For audio recordings you only pay shipping

Questions? Call 877-296-2169 to speak with a real person.

Sign Up Today
With This Course

Access to all training products for one year
$699/year

Unlimited Lorman Training

With the All-Access Pass there is no guessing what you will need for your yearly training budget. $699 will cover all of your training needs for an entire year!

Easy Registrations

Once you purchase your All-Access Pass you will never be any further than one-click away from attending any Lorman training course.

Invest in Yourself

You haven't gotten to where you are professionally by luck alone; it's taken a lot of hard work and training. Invest in yourself with the All-Access Pass.

Product ID: 397792
Published 2016
Purchase Options

Available in Multiple Formats

Purchase this course and learn on your schedule!