R. F. Wagner Graduate School of Public Service, New York University
P11.4138 – Financial Accounting in Government, Not-for-Profit and
Health Care Organizations
Course Syllabus – Fall, 2009 (M. Ives)
Course Overview and Objectives: This course will provide you with basic skills in
financial accounting and reporting for government, not-for-profit, and health care
organizations. The objectives of the course are to gain an understanding of:
a. The special accounting procedures for each type of entity, including:
- How they account for and report certain transactions, such as contributions (notfor-profits), patient care revenues (health care); and property tax revenues (government);
- How certain accounting measurements in government differ from measurements
in business, not-for-profit, and health care entities; and
- How governments use fund accounting and incorporate budgetary accounting
into their accounting systems.
b. The major elements of the operating statements and financial position statements
prepared by these three types of entities.
Prerequisite: P11.4130 – Financial Accounting (which you may take simultaneously
with this course) or an equivalent basic accounting course. See me immediately if you do
not meet this requirement.
Instructor: Martin Ives. I am available for consultation on any matter related to this
course in the adjunct offices at Puck Mondays and Wednesdays between about 3:50 and
4:30 p.m. You can also reach me at (914) 271-9041.
Logistics: We meet every Monday from 4:55 p.m. to 6:35 p.m. from September 14
through October 26. The final exam is on November 2.
Text: Introduction to Governmental and Not-for-Profit Accounting (6th Edition), by Ives,
Johnson, Razek and Hosch, published by Prentice-Hall (referred to in syllabus as IJRH).
Also, my Study notes for governmental accounting.
Grading: Based on a mid-term exam and a final exam, each of which will count about 50
points toward the final grade.
Class Conduct: We cover a lot of material in a short time period, so you need to do the
reading and the assigned problems and try to attend every class. I will not collect your
solutions to the assigned problems (except when the assignment is the take-home part of
the mid-term or the final), but be prepared to discuss the assigned problems because I will
go over them in class. If you are unable to attend a class, do the homework and see me or
call me if you don’t understand something. Bring the textbook and the handouts to class.
Class Topics and Homework Assignments
1. September 14
General Concepts: Brief refresher on basic accounting. Discussion of concepts unique
to not-for-profit, health care, and governmental entities – use of funds (all three);
reporting by net asset class (not-for-profits); modified accrual accounting (government).
Not-for-Profit Accounting and Financial Reporting: Accounting by three net asset
classifications; commence accounting for contributions
Reading: IJRH Chapter 1; Chapter 12, pp. 453-456 and 462-463
(Note: If you need a detailed refresher on basic accounting, read IJRH Chapter 15
and make journal entries for the transactions listed in problems P15-6 and P15-7.)
Problem: E12-1
2. September 21
Not-for-Profit Accounting and Financial Reporting (continued): Accounting for
contributions (pledges, contributions with restrictions, contributions with conditions,
contributions of services and goods); Reporting of expenses; Making reclassifications
from restricted to unrestricted net assets; Reporting investments at fair value; Content of
not-for-profit financial statements.
Reading: IJRH Chapter 12
Problems: E12-3; E12-6; E12-7; P12-7; E12-10
3. September 28
Health Care Accounting and Financial Reporting: Unique aspects of health care
accounting and financial reporting (emphasis on hospitals). Accounting for net patient
service revenues and patient accounts receivable; Accounting for malpractice claims;
Funds used by health care entities; Content of hospital financial reports; Meaning of the
performance measure used in the financial reporting model.
Reading: IJRH Chapter 13
Problems: E13-2 and E13-3 (do simultaneously); E13-10; P13-6; E13-7; P13-2 (page
541); P13-2 (page 543)
4. October 5
Health Care Accounting and Financial Reporting: Complete the discussion.
Mid-term Exam, Covering Not-for-Profit and Health Care Accounting
Governmental Accounting – Use of Funds; Measurement Focus and Basis of
Accounting in the Funds: After the exam, we will start the discussion of governmental
accounting and financial reporting. We will cover the types of funds used in government
accounting and the measurement focus and basis of accounting in the funds.
Reading: IJRH Chapter 2; “Study Notes and Key Journal Entries,” par. 1
Problems: P2-2 (requirements 1 and 2, but not 3); E2-4; P2-11
5. October 12
Governmental Accounting – Budgetary Accounting and Financial Accounting in
Governmental Type Funds: General fund and special revenue funds. Budgetary
accounting - incorporation of the budget into the accounts; encumbrance accounting.
Accounting for revenues and expenditures in the general and special revenue funds.
Reading: IJRH Chapter 3 (skim pages 56-79; read pages 79-89); IJRH Chapter 4;
IJRH Chapter 5 (pages 137-149; 158-161); “Study Notes and Key Journal Entries,” par. 2
Problems: P4-10 in Chapter 4; Also, Summary Problem 2 starting at page 372 in
Chapter 9 – Do Parts A; B.(1); B(2); and C.
6. October 19
Accounting in Governmental, Proprietary and Fiduciary-Type Funds: Accounting
in the governmental-type funds (capital projects and debt service); effect of using the
current financial resources measurement focus and modified accrual accounting;
accounting for capital asset acquisition. Interfund transfers and other interfund
transactions. Accounting in proprietary-type and fiduciary-type funds.
Reading: IJRH Chapter 5, pages 152-155; Chapter 6, pages 196-202 and 210-215;
Chapter 7, pages 242-250 and 253-260; Chapter 8, pages 280-294; “Study Notes and Key
Journal Entries,” par. 3
Problems: P5-9 (transactions 1, 2, and 4) in Chapter 5; Also, Summary Problem 2
starting at page 372 in Chapter 9 – Do Parts D and E on pages 374-375.
7. October 26
Governmental Financial Reporting: The governmental financial reporting model; the
financial reporting entity; content of the financial report, including the notes; content of
Management’s Discussion and Analysis; fund-level financial statements; conversion of
fund-level statements to government-wide statements.
Reading: IJRH Chapters 9 and 10 (read for basic understanding of the concepts);
“Study Notes and Key Journal Entries,” par. 4
Problems: In Chapter 9, do C9-1, P9-1 (except items 7, 8, and 9) and P9-3; in Chapter
10, do E10-3. Review the handout solution to Summary Problem 2 in Chapter 10.
November 2
Final Exam The final exam will run about 1 hour and will be given in a place to be
named at some time between 2:45 and 5:30. If you cannot take exam at that time, please
see me to make arrangements.