Download Week 1 DQ`s DQ1: Log into http://www.charitynavigator.org/. Choose

Week 1 DQ’s
DQ1: Log into http://www.charitynavigator.org/. Choose a good charity and a bad
charity and explain why you feel they should labeled good or bad.
The excellent charitable organization I selected was Doctors without Borders, USA. This
charitable organization has a total rating of 60.12. This score develops from a combined
fiscal score of 57.91 and accountability & transparency of 63.00.
This charitable organization has an income growth of 5.8%, Administrative expenditure
of 1.5% and fundraiser expenditures of 13.0%. This indicates me that the charitable
organization is expending more funds on assisting people compared to on business
expenditures. This charitable organization did indicate a shortfall for the year however
the graph does indicate that on a typical basis the earnings beat the expenditure and
the program expenditure are more compared to administrative expenditures.
The bad charitable organization I selected was Charocot-Marie-Tooth association. This
charitable organization has a total rating of 33.98. The fiscal rating was 19.23 and
accountability was 66.00. It appears the program and administration expenditures are
near in the percentage of 43.9 and 36.0 respectively. The point which actually amazed
me was there was a negative main income and program expenditure row. To offer
charitable organization support a charitable organization should have income.
DQ2: What is fund accounting? How does it compare to proprietary accounting?
Why is fund accounting necessary? What are the major fund types?
Finance accounting is the sort of accounting governing bodies and not-for-profit
companies use to control that earnings are utilized just for what they are allocated for.
The main difference between propriety company accounting and finance accounting
begins with the owners’ equity. There isn't a proprietor’s equity in finance accounting
rather it's known as finance balance. With private accounting on fiscal reports the list of
assets is documented collectively, for example cash is lumped collectively and the
company splits it as its need to pay bills and expand.
With finance accounting the cash is divided into various finance accounts. All of these
accounts can just utilize the funds allotted to them. Finance accounting is essential
since the government and not-for-profit companies are set up to serve the general
public. Hence, specified regulation and legislation deems what they do. With
contributions provided for specified uses the finance accounting offers a spot for this
and the principles for each. With private business there aren't any rules which require
the splitting of the money.
Government measures achievement by the capability to meet expenses by earning
revenues and meeting the requirements of the general public.
DQ3: What are some examples of government and not-for-profit organizations?
How do proprietary businesses measure achievement? How do government
organizations measure success?
Government organization and not-for-profit companies are similar but different.
Government organizations for instance are the local department which maintains local
roadways and plows snow form roads. The local offices where we purchase our license
plates or property taxes. My community hall is a government organization which
maintains the community council and water and sewage division.
A not-for-profit organization is more like a college which is not section of the state
government. The Salvation Army and United Way are section of the non-for-profit
companies.
A private company is a company that must make money. This profit is powered by
buyer demand. The rating of achievement for this kind of business would be to earn
more income compared to expenses, and to not just fulfill buyer requirements but to
continue to get more buyers and increase income to meet the owner’s goal of the
company. Proprietors basically are in business to earn money for them doing something
they like or wish to succeed in.
A government agency measures achievement if the earnings meet the expenses. The
requirement to provide a service to the general public normally needs expenditure but
also is the inspiration of the government organization. Often the service is more the
meeting demand however providing a way of safety for example the police department.
DQ4: What is the purpose of CAFR? What are the components of CAFR? Why is
the Federal Government not subject to GASB 34? How do government-wide
financial statements add information not available in fund financial statements?
The Comprehensive Annual Financial Report (CAFR) includes all the accounting info for
government and not-for-profit company. The aim is to let various different kinds of users
to access info in the report. Since not all users will desire the same info a CAFR is
essential to indicate more compared to only the balance sheet return & expenditures,
and cash flow.
The CAFR consists of 3 parts,
Introduction part, this part informs users who the officers are and the way the
government is structured. It also describes fiscal and economical conditions which
influence the way the government operates.
Fiscal part has 5 parts there are the current starting and finishing fiscal position, the
main fiscal reports and notes influencing these types of reports and any needed
additional info followed by the merging and individual funds.
One purpose the government doesn't have to follow the GASB 34 is it is set for state
government and regional governing bodies only. These companies must set up a
budget and abide by it however the federal government has the authority to modify its
spending budget by vote or take loans to pay for a debt contrary to state government
and local government.
The government-wide fiscal reports are different than fund fiscal reports since it has a
condensed view by placing fund into main or non-major funds. It has 2 requirements a
report of net assets and a report of actions. This is the area which addresses the key
functions not all of the breakdowns which go into the operations.