Financial Statements for Non Profit Organizations is necessary in order to comply with the requirements for operating funds for the benefit of non-profit organizations. Generally, these forms are required by the state where the organization is located. These statements also include financial information about the organization such as assets, income, expenses, assets owned, and liabilities. Some of the examples below include:
State of the Nonprofit Sector – Present Day Balance Sheet – Financial Statements for Non Profit Organizations Look at the records kept for each year when the funds were raised or spent. To determine the amount of money raised and spent from each donor, it is necessary to have the amount donated on each accounting statement. Make a tabulation of how much was raised or spent for that fiscal year and compare it to the actual amount raised or spent. Look for discrepancies and make corrections to help you accurately calculate a precise yearly balance sheet.
Organization Debts and Loan Information – This information will give a better understanding of the finances need by the organization. If any of the operating funds had been received and used, this can be reported as a positive expense, or as a negative expense, if any of the funds were returned due to surplus or deficiency. Review the cash receipts and cash disbursements to see if there are any expenses that were not supported by the funds received from donors.
Expenditures For Professional Services – Look for all professional services that were rendered by the organization that are being billed for on each Financial Statement for Non Profit Organizations. This includes personal services, supplies, food, software, and even printing materials. Look for if these are being billed as an expense or a charitable contribution. Also check the records to see if the personnel who rendered the service were paid for the service.
Excess for Carrying Insurance- The amount that can be financed for the vehicle is different than the excess or profit. Make sure you consider the insurance premium, which can take the place of the profit on the budget statement, as this is also considered a cost of operation.
Commercial Vehicles – Also look at the expenses related to the commercial vehicles, as this is not part of the business. Check if the excess expenses are documented as a loss and if this is the case, make sure it is reported on the annual statement of operations. Make sure the expenses are itemized for easy perusal.
Foundation Grants – The U.S. Government distributes many types of grants to Nonprofit organizations each year. Make sure the grants listed are verified by the Nonprofit Sector. Look at the overall report to see if all grantees are on the Annual Report and make sure the records are up to date and correct.
This list is just a few examples of what must be included on your Financial Statements for Non Profit Organizations. Make sure you understand all of the information in the statement and that it all conforms to Federal and State requirements.