ACC 322 Final Project Two: Nonprofit Accounting Guidelines and Rubric
Overview
The second final project for this course is the creation of an accounting workbook and accompanying memo to management.
Unlike traditional businesses, the purpose of nonprofit organizations is to provide services to society. The lack of profit motive and the focus on providing services
creates the need for a different kind of accounting and accountability. Revenue sources are different, with nonprofits relying on donations and fees for services.
Resources are also accounted for differently because of restrictions often placed on donations. It is the responsibility of the nonprofit accountant to provide
accountability for these funds through financial reports.
By working through this project, you will understand how revenues and expenses are accounted for in nonprofits. Using this information can also help you
analyze the financial position of the organization. This analysis can be used to assess financial strengths and weaknesses.
It is important to note that some types of organizationsuniversities and healthcare organizations, for examplecan be for-profit, nonprofit, or government
operated. As an accountant, you need to understand how the statements for these organizations would be different under different models.
In the accounting workbook and memo, you will use course-provided information to (1) analyze transactions for a nonprofit in accordance with industry
standards; (2) create and use financial statements to assist in the analysis of the organization’s financial position; and (3) communicate the results of operations
to management.
In this assignment, you will demonstrate your mastery of the following course outcomes: Prepare journal entries, financial statements, and supporting documentation that impact reporting for nonprofit and governmental entities using
appropriate accounting standards
Evaluate governmental and nonprofit accounting statements in determining the fiscal position of various entities using appropriate tools of the discipline
Select accounting methods appropriate to the differentiated needs of governmental and nonprofit organizations
Determine appropriate strategies for effectively communicating the differences between private sector, governmental, and nonprofit reporting to
stakeholders Prompt
You are the accountant for a nonprofit organization. Your job requires that you prepare journal entries, post to ledgers, and prepare financial statements. Using
the Final Project Two Case Study document and Final Project Two Student Workbook spreadsheet provided, you will prepare an accounting workbook, which
includes supporting journals. The supporting journals will be used in preparation of the financial statements. Finally, you will prepare a three- to five-page memo
explaining the reports to management. In your memo, you will also discuss how the statements would be different if your organization was private for-profit or
government operated. Specifically, the following critical elements must be addressed:
I. Prepare an accounting workbook with supporting journals.
a) Analyze all transactions in the Final Project Two Case Study document and Final Project Two Student Workbook spreadsheet to determine
proper handling.
b) Record all journal entries.
c) Use journal entries to prepare financial statements.
II. Prepare a memo to management
a) Analyze the results of operations, including what the results tell the readers about the organization.
b) Explain what the statements tell about the strengths and weaknesses of the organization’s financial position.
c) Discuss how the accounting and statements would be different if the organization was for-profit.
d) Discuss how the accounting and statements would be different if the organization was government-operated. If you would like a refresher course on using various features of Excel, sign in to Atomic Learning (see the link in the Assignment Guidelines and Rubrics folder)
and type “Excel” in the search box. This will provide you with options to select the specific level of training that you need (i.e., intro, intermediate, or advanced)
and the specific version of Excel that you have (i.e., 2011, 2013, etc.). The trainings are broken down into small, meaningful chunks. Therefore, you should be able
to find specific topics at each level that will meet your needs. Final Project Two Rubric
Guidelines for Submission: You will submit your completed Final Project Two Student Workbook, and include the required entries, statements, and schedules
using the appropriate Excel worksheet. Your memo to management must be 3–5 pages in length (plus a cover page and references) and must be written in APA
format. Use double spacing, 12-point Times New Roman font, and one-inch margins.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Workbook:
Transaction Analysis Exemplary (100%)
Accurately analyzes and records
all transactions Workbook: Journal
Entry Records Records all journal entries
accurately Proficient (85%) Workbook: Financial
Statements Prepares financial statements
correctly Report: Results of
Operations Meets “Proficient” criteria and
uses concrete examples to
substantiate claims Analyzes the results of
operations and describes what
the results demonstrate about
the organization Report:
Organization’s
Financial Position Meets “Proficient” criteria and
uses concrete examples to
substantiate claims Identifies the organization’s
financial strengths and
weaknesses, focusing on
specific financial information Report: For-Profit
Changes in
Operations Meets “Proficient” criteria and
explains why these differences
are necessary Explains how the accounting
and statements would be
different if the organization was
for-profit Needs Improvement (55%)
Analyzes and records all
transactions but transactions
contain inaccuracies Not Evident (0%)
Does not record transactions Value
13 Records all journal entries but
journal entries contain
inaccuracies
Prepares financial statements
with inaccuracies Does not record journal entries 13 Does not prepare financial
statements 13 Analyzes the results of
operations and/or describes
what the results demonstrate
about the organization but
submission is not clear or
contains inaccuracies
Identifies the organization’s
financial strengths and
weaknesses but information is
not clear, too general, or
contains inaccuracies
Discusses how the accounting
and statements would be
different if the organization was
for-profit but explanation is not
clear or lacks details Does not analyze the results of
operations 13 Does not identify the
organization’s strengths and
weaknesses 13 Does not discuss how
accounting statements would
be different if the organization
was for-profit 13 Report: GovernmentOperated Changes in
Operations Meets “Proficient” criteria and
explains why these differences
are necessary Explains how the accounting
and statements would be
different if the organization was
government-operated Articulation of
Response Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization Discusses how the accounting
and statements would be
different if the organization was
government-operated but
explanation is not clear or lacks
details
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas Does not discuss how
accounting statements would
be different if the organization
was government-operated 12 Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas 10 Earned Total 100%