Non-Profit Financial Reporting Review

Non-Profit Financial Reporting Review Author Name Institution Affiliation The not-for-profit organization I have chosen for my project is the Arkansas Nonprofit Alliance. I spent several days reviewing the financial and audit reports of this organization for the year 2014. Both the annual and financial statements are available on the official website (). I have found that the statement of Arkansas Nonprofit Alliance’s financial position conforms to the standards of FASB, as it shows the net assets, current assets, and liabilities of the organization. Furthermore, it reveals specific details at which the financial state of this organization was at the right point or was changed. Not only this but also the statement of different activities conforms to the standards of FASB as it reveals the revenues, expenses and possible changes made in the assets of Arkansas Nonprofit Alliance. The changes in net assets can also be found (FASB, 1993). The cash flow statement of this organization for the year of 2014 conforms to the guidance of FASB because it reveals the amount of cash used in different investments like reinvestments of the interest earned on the deposit certificate, and there is information on how the fixed assets were acquired. The operating costs of this organization seem to be following the stipulation of FASB because these reveal the items that are not included in investing and financing activities. The unrestricted asset is the assets that accompany no restrictions, meaning they can be used by an organization without any need to adhere to certain rules and regulations imposed by the donor (Commttee, 2013). In the case of the Arkansas Nonprofit Alliance, the temporarily restricted assets reveal an unspent contribution of the donor. As far as the permanently restricted assets are concerned, I could not find them. This means the contribution of this non-profit organization is supposed to hold in perpetuity. The cash flow statement of the Arkansas Nonprofit Alliance consists of details of certain investing activities and operative activities. A cash flow statement is meant to reveal how a company or organization manages the flow of cash during a specific time. For the year 2014, the cash inflow of Arkansas Nonprofit Alliance’s operating activities reveals a tremendous increase in the flow of cash compared to 2013. It is good for the organization, as this enables the Arkansas Nonprofit Alliance to meet its funding requirements and to contribute to long-term and short-term projects while facing liquidity issues of the future without any major issue. On the other hand, the cash outflow of this non-profit organization has been improved via certain investing activities. However, some amount was used and this kept the organization from fulfilling the actual requirements of shareholders. In addition, the Arkansas Nonprofit Alliance was not able to meet all of its expenses, and thus, the smooth running became really difficult. It should be noticed that the Arkansas Nonprofi...