The Financial Accounting Standards Board (FASB) has issued a change in accounting practice for Not-for-Profit Organizations including Colleges and Universities (ASU 2016-14). This change is being made to address “execution of stewardship responsibilities” as well as disclosing the “availability of resources to meet cash needs for general expenditures and liquidity and financial flexibility”. We will implement it at the University on October 1, 2017. We have already created new account attributes for all Entity 04 accounts and they have been loaded into PRISM. There is nothing that you need to do in that regard.
The main provision of the new standard requires us to separate true donor restricted funds from non-donor restricted funds. The translation of this to practical terms is that we cannot comingle donor-restricted (DR) and non-donor restricted (UR) funds in one account any longer. Secondly, we will have additional coding for Entity 04 accounts that will aid all of us in identifying more information about the accounts. Please click the link below for the full text of changes and information.Read Full Text