The Government/Not-for-Profit CPA Report Summary Page Vol. 2005, No. 1 The Not-for-Profit Specialist Investment Gains and Losses: Traps for the Unwary For the past decade, FASB Statement 124 has required nonprofit organizations to report all debt investments and equity investments that have a readily determinable fair market value in the organization’s statement of financial position. Reed Risteen, an audit partner in the nonprofit services group of Blum Shapiro, reports how this guidance -- along with the Uniform Management of Institutional Funds Act -- provides a roadmap for nonprofit organizations, and their auditors, in avoiding traps for the unwary. Even More Scrutiny for Charities? As Congress moves closer to cracking down on abuses at charities, it is widely expected that many of the legislative proposals will come from the blue-ribbon Panel on the Nonprofit Sector, which recently issued its interim report. Prof. Michael Tucker analyzes the panel's proposed changes that are designed to improve governing procedures and financial disclosure. The Government Specialist Continuity Management: What You Need to Know Research indicates that organizations face crises on an average of every four to five years. These disasters can range from sabotage and terrorist activities to power grid and telephone failure, from computer viruses and corrupted data to asbestos and "sick" buildings. As a result, more enterprises than ever are asking Jim Brooks, senior vice president of Control Risks Group: "Are we effectively implementing -- and auditing -our continuity management program?" Dealing with Restricted Net Assets: What You Need to Do GASB's financial reporting model requires that the limitations on the use of net assets, imposed by enabling legislation, be reported as “restricted net assets.” But some governments, and their financial advisers, have had difficulty interpreting the requirement that those restrictions be “legally enforceable.” In this segment, we explain how new GASB Statement 46 will help determine when net assets have been restricted to a particular use.