Question

Switch gears and find the CAFR of a college or university.  Note: it may be hard to find one for private institutions.    
What funds does this institution use regularly and for what purposes?

Answer 1

GASB STATEMENT 34 IMPLEMENTATION ISSUES
Colleges and Universities Reporting

Issue:
To determine the most appropriate method of reporting for colleges and universities
from the alternatives available under GASB Statements 34 and 35.

Discussion of Alternatives:
The following 3 basic reporting models are available as alternatives for colleges and
universities reporting under GASB Statements 34 and 35. The financial reports follow
the guidance established in GASB Statement 34 for special-purpose governmental
entities in paragraphs

1. Reporting only Business-Type Activities (BTA) or Enterprise Fund Model:
This alternative would allow colleges and universities to present the financial statements
required for enterprise funds per GASB 34 paragraphs 91-105. The required financial
statements for BTA’s are Statement of Net Assets or Balance Sheet, Statement of
Revenues, Expenses and Changes in Fund Net Assets or Fund Equity, and Statement
of Cash Flows. These should be presented using the economic resources
measurement focus and the accrual basis of accounting. Using this model entails
preparation of Direct Method Cash Flow Statements, MD&A, RSI and capitalization of
capital assets and infrastructure and related depreciation.

2. Reporting both Governmental and Business-Type Activities:
This alternative would require observing all of the standards established by GASB 34,
These are the standards for Management
Discussion and Analysis (MD&A), entity-wide financial statements, fund financial
statements, notes to the financial statements, and Required Supplementary Information
(RSI) other than MD&A. This method would require both modified and full accrual basis
of accounting which would entail two sets of financial reports, much like the
requirements for the CAFR for the State of Louisiana.

3. Reporting only Governmental Activities:
This alternative would require following the guidance to report as special-purpose
governments engaged only in governmental activities. This alternative would also
require observing all of the standards established by GASB 34
Financial statements for governmental funds should be
presented using the current financial resources measurement focus and the modified
accrual basis of accounting, while the institutional-wide statements would require full
accrual basis of accounting.