ACCT 505
Governmental and Nonprofit Accounting
Fall 2013 – Section 001
T-TH 1:15PM – 2:30PM
(Room 363)
Instructor:
Janice H. Fergusson, CPA, MACC
Office:
BA 330
Office Hours:
Monday and Wednesday 10:00 – 11:00AM and 2:00 – 3:00PM
Tuesday and Thursday 10:00 – 11:00AM
Other times by appointment
Office Phone:
(803) 777-4903
E-Mail Address:
fergusson@moore.sc.edu
Prerequisites:
ACCT 405 – Financial Accounting II
Required
Textbook:
Governmental and Nonprofit Accounting Theory and Practice,
10th Edition, Freeman/ Shoulders/Allison/Patton/Smith
Prentice Hall, ISBN-13: #978-0-13-275126-1.
Other
Materials:
Other course materials will be made available on Blackboard.
Course Objective:
The objective of this course is to develop an understanding of GAAP and financial
reporting standards for state and local governments and nonprofit organizations. This
course will include government accounting, budget preparation and control, fund
accounting, debt and fixed asset accounting, financial and compliance reporting, and
various other accounting concepts applicable to governmental and nonprofit accounting.
Learning Outcomes:
Upon successful completion of this course, students should be able to:
 identify the key distinguishing characteristics, concepts, and objectives of
government and nonprofit (G&NP) accounting and financial reporting.
 identify the specific types of funds in each fund category, the measurement focus and
basis of accounting used for each category of funds, the different uses of each fund
type in each category, and the financial statements required for funds of each
category.
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analyze and record the effects of transactions and events in the governmental,
proprietary, and fiduciary fund categories and in the General Capital Assets and
General Long-Term Liabilities nonfund accounts.
understand basic budgetary accounting and reporting practices and requirements.
understand the format and content of both fund financial statements and governmentwide financial statements.
prepare the adjustments needed to derive government-wide financial statements from
fund financial statement data and prepare required reconciliations.
explain the nature and contents of a Comprehensive Annual Financial Report.
understand the accounting and financial reporting requirements for nongovernment
not-for-profit organizations.
understand the accounting and financial reporting requirements for government
colleges and universities, and the key differences between accounting and reporting
for government and nongovernment not-for-profit colleges and universities.
understand the accounting and financial reporting requirements for government
hospitals, and the key differences between accounting and reporting for government
and nongovernment not-for-profit hospitals.
explain the basic aspects of an audit of government and not-for-profit organization
financial statements under GAAS and GAGAS.
understand single audit – its purpose, when it is required, and its key components.
Attendance Policy:
You are expected to attend every class. You are also expected to arrive for class on time
and stay for the entire class period. If you must miss class, you are responsible for all
assigned material plus everything covered in class.
Class Preparation:
You are expected to read and study the assigned material before the class meeting for
which the material is scheduled. A condensed version of the lecture slides for each
chapter will be posted on Blackboard.
Performance Evaluation:
Grades for this course will be based on the number of points you earn from the following
requirements:
Undergraduate Credit:
Exam 1
225 points
Exam 2
225 points
Exam 3
225 points
Final Exam
225 points
Quizzes
100 points
1,000 points
Graduate Credit:
Exam 1
225 points
Exam 2
225 points
Exam 3
225 points
Final Exam
225 points
Quizzes
100 points
Graduate Project
150 points
1,150 points
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Letter grades will be assigned based on the percentage of total points earned as follows:
A
90 -100%
B+
87 - 89.9%
B
80 - 86.9%
C+
77 - 79.9%
C
70 - 76.9%
D
60 - 69.9%
F
Below 60%
Exams will be a combination of multiple-choice questions and short problems. The
problems may require journal entries, financial statement preparation, computations, or
written explanations.
No late makeup exams will be given and a missed exam will generally result in a grade of
zero. In the case of unforeseen emergencies, an average of the other three exam grades
will be used as the grade for the missed exam. This exception is at the discretion of the
instructor (not the student) and will be granted only in the case of sincere emergencies,
not for convenience. Appropriate documentation will be required to support
emergencies.
Calculators are permitted provided they are silent calculators with single-line display.
Programmable or graphing calculators, cell phones, and other electronic devices are not
allowed to be used on a quiz or exam under any circumstances. If your calculator does
not meet the above standards, you will not be allowed to use it and a substitute calculator
may not be available. I will not have extra calculators for quizzes, so you should invest in
a simple four-function calculator and bring it to each class if you want to make sure that
you have a calculator on quiz days.
During exams, all personal belongings except for writing utensils and a calculator must
be securely stored. I reserve the right to confiscate anything that is not secured in a
closed bag during the exam, including cell phones and other electronic devices which
must be powered off during exams.
Students with Disabilities:
If you have a documented disability for which you need special testing arrangements,
please contact the Office of Student Disability Services, Phone 777-6142, TDD 7776744, email sasds@mailbox.sc.edu, or visit their office located in LeConte College,
Room 112A.
USC Honor Code:
It is the responsibility of every student at the University of South Carolina Columbia to
adhere steadfastly to truthfulness and to avoid dishonesty, fraud, or deceit of any type in
connection with any academic program. Any student who violates this Honor Code or
who knowingly assists another to violate this Honor Code shall be subject to discipline.
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This Honor Code is intended to prohibit all forms of academic dishonesty and should be
interpreted broadly to carry out that purpose. The following examples illustrate conduct
that violates this Honor Code, but this list is not intended to be an exhaustive compilation
of conduct prohibited by the Honor Code:
1. Giving or receiving unauthorized assistance, or attempting to give or receive such
assistance, in connection with the performance of any academic work.
2. Unauthorized use of materials or information of any type or the unauthorized use of
any electronic or mechanical device in connection with the completion of any
academic work.
3. Access to the contents of any test or examination or the purchase, sale, or theft of any
test or examination prior to its administration.
4. Use of another person’s work or ideas without proper acknowledgment of source.
5. Intentional misrepresentation by word or action of any situation of fact, or intentional
omission of material fact, so as to mislead any person in connection with any
academic work (including, without limitation, the scheduling, completion,
performance, or submission of any such work).
6. Offering or giving any favor or thing of value for the purpose of influencing
improperly a grade or other evaluation of a student in an academic program.
7. Conduct intended to interfere with an instructor’s ability to evaluate accurately a
student’s competency or performance in an academic program.
Whenever a student is uncertain as to whether conduct would violate this Honor
Code, it is the responsibility of the student to seek clarification from the appropriate
faculty member or instructor of record prior to engaging in such conduct.
Suspected violations of the honor code will be reported to the Office of Academic
Integrity. Violations of the honor code will result in disciplinary measures.
General Comments:
My expectation is that you will work hard and gain an understanding, as well as an
appreciation for, governmental and nonprofit accounting. If you work hard you may
even have some fun in this class.
What do I mean by working hard – a minimum of 3-4 hours preparing outside of class for
each chapter covered in this course. It is extremely important that you keep up in this
class. If you fall behind, it is very difficult to catch up! So plan now to work hard.
The course is challenging! Contrary to what you may have heard, governmental and
nonprofit accounting is not a “whole new ball game.” However, it is a game played by
slightly different rules that you will be required to learn.
There are no additional opportunities for extra credit in this class! Any “extra credit” is
already built into the grading computation, so don’t come asking for extra credit at the
end of the semester when you haven’t earned the grade that you want. Begin working
hard now for the grade that you want!
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Course Outline – Fall 2013
Date
Aug. 22 (TH)
Topic/Event
Homework Assignments
Course Introduction
Chapter 1 – Governmental and
Nonprofit Accounting:
Environment and Characteristics
Aug. 27 (T)
Chapter 1 – Governmental and
Nonprofit Accounting:
Environment and Characteristics
Exercise 1-1
Problem 1-2
Chapter 2 – State and Local
Government Accounting and Financial
Reporting Model: The Foundation
Aug. 28 (W)
Last Day to
Drop/Add Class
Aug. 29 (TH)
Chapter 2 – State and Local
Government Accounting and Financial
Reporting Model: The Foundation
Sept. 3 (T)
Chapter 3 – The General Fund and
Special Revenue Funds
Sept. 5 (TH)
Chapter 3 – The General Fund and
Special Revenue Funds
Exercises 2-1, 2-2, 2-4
Problem 2-1, 2-2
Exercise 3-1, 3-2, 3-3, 3-4
Problems 3-1, 3-2, 3-3, 3-4, 3-8
Chapter 4 – Budgeting, Budgetary
Accounting, and Budgetary Reporting
Sept. 10 (T)
Sept. 12 (TH)
Chapter 4 – Budgeting, Budgetary
Accounting, and Budgetary Reporting
Exam 1
(Chapters 1-4)
Exercises 4-1, 4-2
Problem 4-2, 4-4
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Date
Topic/Event
Homework Assignments
Sept. 17 (T)
Chapter 5 – Revenue Accounting –
Governmental Funds
Sept. 19 (TH)
Chapter 5 – Revenue Accounting –
Governmental Funds
Sept. 24 (T)
Chapter 6 – Expenditure Accounting –
Governmental Funds
Sept. 26 (TH)
Chapter 6 – Expenditure Accounting –
Governmental Funds
Exercises 6-2, 6-3, 6-4, 6-6
Problems 6-1, 6-2, 6-3, 6-5
Oct. 1 (T)
Chapter 7 – Capital Project Funds
Exercises 7-1, 7-2, 7-4
Problems 7-1, 7-2, 7-3,
7-4 requirement (a) (GL entries
only)
Oct. 3 (TH)
Chapter 8 – Debt Service Funds (Part I)
Exercise 8-2
Oct. 8 (T)
Exam 2
(Chapters 5-8)
Oct. 10(TH)
Chapter 8 – Debt Service Funds (Part 2)
Oct. 11 (F)
Last Day to Withdraw
with a “W”
Oct. 15 (T)
Oct. 17-18
(TH-F)
Chapter 9 – General Capital Assets;
General Long-Term Liabilities;
Permanent Funds
Fall Break –
No Classes
Exercises 5-1, 5-2, 5-5, 5-6, 5-7
Problems 5-1, 5-3, 5-4
Exercises 8-1, 8-4, 8-5, 8-6
Problems 8-1, 8-4
Exercises 9-1, 9-2
Problems 9-1, 9-3, 9-5
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Date
Topic/Event
Homework Assignments
Oct. 22 (T)
Chapter 10 – Enterprise Funds
Exercises 10-1, 10-2, 10-7
Problems 10-1, 10-4
requirement (a) only
Oct. 24 (TH)
Chapter 11 – Internal Service Funds
Exercises 11-1, 11-2, 11-3
Problem 11-3
Oct. 29 (T)
Chapter 12 – Trust and Agency
(Fiduciary) Funds
Exercises 12-1, 12-2, 12-3
Problem 12-2
Oct. 31 (TH)
Chapter 13 – Financial Reporting:
The Basic Financial Statements and
Required Supplementary Information
Nov. 5 (T)
Chapter 13 – Financial Reporting:
The Basic Financial Statements and
Required Supplementary Information
Nov. 7 (TH)
Exercises 13-1, 13-2, 13-3, 13-5
Problems 13-1, 13-2
Exam 3
(Chapters 8-13)
Nov. 12 (T)
Chapter 14 – Financial Reporting:
Deriving Government-Wide Financial
Statements and Required
Reconciliations
Exercises 14-1, 14-2, 14-4, 14-5,
14-6
Problem 14-1
Nov. 14 (TH)
Chapter 15 – Financial Reporting:
The Comprehensive Annual Financial
Report (CAFR) and the Financial
Reporting Entity
Exercises 15-1, 15-2
Problem 15-5
Nov. 19 (T)
Chapter 16 – Non-SLG Not-for-Profit
Organizations: SFAS 116 & 117
Approach
Exercises 16-1, 16-2,
Problems 16-1, 16-7
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Date
Topic/Event
Homework Assignments
Nov. 21 (TH)
Chapter 17 – Accounting for Colleges
and Universities
Exercise 17-1
Problems 17-1, 17-2, 17-6
Nov. 26 (T)
Chapter 18 – Accounting for Health
Care Organizations
Exercises 18-1, 18-2
Problems 18-1, 18-5, 18-7
Nov. 27-29
(W-F)
Thanksgiving Recess –
No Classes
Dec. 3 (T)
Chapter 20 – Auditing Governments
and Not-for-Profit Organizations
Dec. 5 (TH)
Chapter 20 – Auditing Governments
and Not-for-Profit Organizations,
continued
Exercises 20-1, 20-2
Problems 20-2, 20-3, 20-4
Review for Final Exam
Dec. 9 (M)
12:30PM
Final Exam
(Chapters 14-18 and 20)
Please Note: Your instructor reserves the right to adjust this schedule at any time. If you are
not in class on a day that a change may be made, it is YOUR responsibility to find out the
changes from a classmate.