Assignment 2: Non-for-Profit Financial Reporting Review Finance Essay

Non-for-profit financial reporting review Palm Beach County Food Bank (FL)
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The non for-profit organizations (NFPs), are diverse and FASB) guidance in Statement No. 117 recognize this by allowing flexibility when reporting to the public as there are some wholly dependent on government grants, fees to goods and services and private philanthropy
Palm Beach County Food Bank (FL prepared the financial statements in accordance to Statement No. 117 requires that the entities provided statement of financial position, a statement of activities, and statement of cash flows, which were prepared together with statement of functional expenses in the audited financial statements for the year ended June 30, 2017 (Larkin, DiTommaso & Ruppel, 2017). ASC 958-205-05-5 (FAS-117) requires accompanying notes to financial statements and the first item is Business and Summary of Significant Accounting Policies (Larkin, DiTommaso & Ruppel, 2017).
The governmental funds, proprietary funds, and fiduciary funds are the three fund categories when preparing and reporting the financial matters of the not-for-profit organizations. The government funds are the Balance Sheet, Statement of Revenue, Expenditures, and Changes in Fund Balances. Under the Statement of Revenue the sources of revenue were Federated campaigns $225,456, Fundraising events $133,125, Government grants (contributions) $555,295 All other contributions, gifts, grants $8,989,504, while the total revenue was $9,967,204 (Palm Beach unitedway.org, 2017).
The total functional expenses were $10,158,218 with the largest share of the expenses being Grants and other assistance to domestic organizations and domestic governments at $7,682,878. the net assets beginning of year in 2017 and 2016 were $2,494,193 and $ 2,016,080 while the $23,03,179 and $2,494,193 Under the Proprietary Funds there are Statement of Net Assets, the Statement of Revenue, Expenses, and Changes in Fund Net Assets and Statement of Cash Flows (Palm Beach Unitedway, 2018).
In the direct method of cash flow statements, the cash receipts and payments from the operating activities are reported while in the indirect method, there is reconciliation from the change in net income to cash from operations. Palm Beach County Food Bank is using the direct method of presenting operating cash flows with cash received from Governmental support and Private gifts and grants, while cash is paid to vendors and employees where the payments are $2,386,439 and $ 2,086,726 in 2017 and 2016 (Palm Beach unitedway, 2018). The not-for-profit organizations are longer required to undertake indirect reconciliation when using the direct method
Cash flows from operating activities:20172016 Cash received from: Governmental support$555,295 $515,498  Private gifts and grants$1,724,281 $1,925,940  Cash paid to vendors and employees ($2,386,439)($2,086,726) Other income2,2482,784 Interest expense paid($3,615)Net cash provided by (used in) operating activities ($108,230)$357,496 
In the disclosure of grants and contributions receivable as part of the assets, were $6,730 and $15,907 in 2017 and 2016, and this were reported in the assets...