![Page 1: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/1.jpg)
Chapter 13
Chapter 13 Granof & Khumawala 5e 1
![Page 2: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/2.jpg)
2
Institution
Endow ment value as of June 30,
2007 (in billions of dollars)
Investment return, year ending June
30, 2007Spending rate for 2007 f iscal year
Harvard U. $34.90 23.00% 4.60%
Yale U. $22.50 28.00% 3.80%
Stanford U. $17.20 23.00% 4.40%
Princeton U. $15.80 24.70% 4.60%
U. of Texas $14.40 18.20% 4.40%Massachusetts Insti tute of Technology $10.00 22.10% 4.30%
Columbia U. $7.20 23.10% *
U. of Michigan $7.10 25.60% 3.80%
U. of Ca l i fornia $6.70 20.10% 4.20%Texas A&M U. System Foundations $6.60 18.90% 4.40%
These were the largest endowments at June 30, 2008
Chapter 13 Granof & Khumawala 5e
![Page 3: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/3.jpg)
Source: 2008 NACUBO–Commonfund Endowment Study Follow-up Survey, January 2009.
Chapter 13 Granof & Khumawala 5e 3
![Page 4: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/4.jpg)
Chapter 13 Granof & Khumawala 5e 4
Institution
Endowment value as of
June 30, 2007 (in millions of
dollars)
Endowment value as of
June 30, 2008 (in millions of
dollars)Pct Change in Endowment
Harvard U. $ 34,635 $ 36,556 5.5%Yale U. $ 22,530 $ 22,869 1.5%Stanford U. $ 17,165 $ 17,200 0.2%Princeton U. $ 15,787 $ 16,349 3.6%U. of Texas $ 15,614 $ 16,111 3.2%MIT $ 9,980 $ 10,069 0.9%Columbia U. $ 7,150 $ 7,147 0.0%U. of Michigan $ 7,090 $ 7,572 6.8%U. of California $ 6,439 $ 6,217 -3.4%Texas A&M System $ 6,590 $ 6,659 1.0%University of Houston 654$ $ 674 3.2%University of Idaho $ 189 $ 176 -6.6%
![Page 5: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/5.jpg)
5
Endowment Assets (as of June 30,2008)FY 2008
(NES)
Ju1y 1 to Nov. 30
Follow-upGreater Than $1 Billion 0.6% -20.5%> $500 Million to ≤ $1 Billion -1.9% -22.2%> $100 Million to ≤ $500 Million -2.9% -23.5%> $50 Million to ≤ $100 Million -3.2% -22.1%> $25 Million to ≤ $50 Million -4.3% -23.1%Less Than or Equal to $25 Million -4.3% -21.4%All Public Institutions -4.3% -21.3%All Independent Institutions -2.8% -22.5%Full Sample -3.0% -22.5%Chapter 13 Granof & Khumawala 5e
![Page 6: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/6.jpg)
Most are state, with 12 federal and a few hundred local Example: University of Idaho, Washington State University
Proprietary (for profit) – about 1,000 Not-for-profit – about 1,600
Example: Brigham Young University, University of Portland, University of Puget Sound, Pacific Lutheran University
Chapter 13 Granof & Khumawala 5e 6
![Page 7: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/7.jpg)
Chapter 13 Granof & Khumawala 5e 7
Year 2007-08
4,3522,6751,6771,685
6531,0322,6672,022
645Total 1,624
4-year 1,5322-year 92
Total 1,0434-year 4902-year 553
2-year
PublicTotal
4-year2-year
For-profit
Not-for-profit
2-year, total
US Colleges & Universities
Private
Total4-year, total
All institutionsTotal
4-year
![Page 8: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/8.jpg)
However, some institutions (e.g. community colleges) use the full GASB government model with the dual perspective.
1) Only in business-type activities 2) Only in governmental activities 3) In both
Chapter 13 Granof & Khumawala 5e 8
![Page 9: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/9.jpg)
Chapter 13 Granof & Khumawala 5e 9
• Used for:
• Internal Purposes ONLY
• The fund structure prescribed by the AICPA 1973 Audit and Accounting Guide for Colleges and Universities (no longer authoritative for external financial reporting purposes):
• Current funds (unrestricted and restricted)• Loan funds• Endowment and similar funds• Annuity and life income funds• Plant funds (4 sub-funds)• Agency funds
Fund Accounting
![Page 10: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/10.jpg)
GASB 35 (which says to follow GASB 34 but provides examples for C&Us)
AICPA AAG State and Local Governments
FASB standards, now codified as ASC 958
FARM (industry guidance maintained by NACUBO)
Chapter 13 Granof & Khumawala 5e 10
![Page 11: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/11.jpg)
PDF files:University of Idaho (GASB)
University of Puget Sound (FASB)
Chapter 13 Granof & Khumawala 5e 11
![Page 12: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/12.jpg)
Chapter 13 Granof & Khumawala 5e 12
Reporting as a special purpose government engaged in business-type activities only under GASB Statement Nos. 34 and 35 .
Statement of Net Assets, classifying net assets into:
-Unrestricted-Restricted (Expendable or Nonexpendable)-Invested in Capital Assets, net of related debt
Statement of Revenues, Expenses, and Changes in Net Assets
Statement of Cash Flows
For Public C&Us
![Page 13: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/13.jpg)
Chapter 13 Granof & Khumawala 5e 13
Reporting under SFAS Nos. 116 and 117
Statement of Financial Position classifying net assets into:
-unrestricted -temporarily restricted-permanently restricted
Statement of Activities
Statement of Cash Flows
Example: Rice University
For Private C&Us
![Page 14: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/14.jpg)
14
GASB does not allow designations to be presented on face of FS
So, the most obvious difference on BS is the NA section
Chapter 13 Granof & Khumawala 5e
![Page 15: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/15.jpg)
15
This is a classified balance sheet (stmt of net assets) but this display is not mandatory under GASB
Chapter 13 Granof & Khumawala 5e
![Page 16: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/16.jpg)
Chapter 13 Granof & Khumawala 5e 17
Private nonprofit universities don’t need a separate nonprofit to hold the endowments so there is generally just one set of financial statements.
![Page 17: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/17.jpg)
18
Under FASB, classification of current and noncurrent is optional (can use order of liquidity or information in notes)Chapter 13 Granof & Khumawala 5e
![Page 18: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/18.jpg)
Chapter 13 Granof & Khumawala 5e 20
Both governmental and private universities classify revenues by SOURCE.
Common categories of revenue include: -Tuition and fees -Federal, state, and local appropriations-Private gifts-Grants and contracts-Endowment income-Sales and services of educational activities-Sales and services of auxiliary activities-Gain/loss on sales of investments
Revenue Classifications
![Page 19: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/19.jpg)
Chapter 13 Granof & Khumawala 5e 21
Both governmental and private universities classify expenses by FUNCTION. (see next slide)
Recognized on the accrual basis.
May be also classified by (i.e. matrix form):
-program functions
-organizational units
-projects
-object classes.
Current Operating Expenses
![Page 20: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/20.jpg)
Chapter 13 Granof & Khumawala 5e 22
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships and fellowships
Functional Classification of Expenses
![Page 21: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/21.jpg)
Chapter 13 Granof & Khumawala 5e 23
Unlike GASB, FASB does not define “operating” but many nonprofits present a subtotal
![Page 22: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/22.jpg)
Chapter 13 Granof & Khumawala 5e 24
![Page 23: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/23.jpg)
25
Under GASB there is almost always an operating LOSS
Chapter 13 Granof & Khumawala 5e
![Page 24: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/24.jpg)
Chapter 13 Granof & Khumawala 5e 26
![Page 25: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/25.jpg)
Chapter 13 Granof & Khumawala 5e 27
![Page 26: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/26.jpg)
Chapter 13 Granof & Khumawala 5e 28
Direct Method!
![Page 27: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/27.jpg)
Chapter 13 Granof & Khumawala 5e 29
Under GASB, there are 4 sections on the SCF and the university MUST use the direct method
![Page 28: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/28.jpg)
Chapter 13 Granof & Khumawala 5e 30
UPS uses the indirect method for the SCF
![Page 29: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/29.jpg)
Chapter 13 Granof & Khumawala 5e 31
Isn’t this much better?
![Page 30: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/30.jpg)
32
Under GASB, a management discussion and analysis (MD&A) section is mandatory. There is no equivalent requirement under FASB
Chapter 13 Granof & Khumawala 5e
![Page 31: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/31.jpg)
Chapter 13 Granof & Khumawala 5e 33
UPS actually has a section that is somewhat like MD&A but the majority of private colleges and universities do not
![Page 32: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/32.jpg)
Chapter 13 Granof & Khumawala 5e 34
An MD&A section is a good place to disclose “SEA” nonfinancial performance indicators like these from UPS
![Page 33: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/33.jpg)
GASB MD&AThe GASB MD&A instructions are very prescriptive with respect to the content and, among other items, require disclosure of the nature of expenses. Apparently, UI does it by way of a GRAPH:
Chapter 13 Granof & Khumawala 5e 35
![Page 34: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/34.jpg)
Chapter 13 Granof & Khumawala 5e 36
![Page 35: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/35.jpg)
37Chapter 13 Granof & Khumawala 5e
![Page 36: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/36.jpg)
Recording Tuition NETAccounting for Grants
Endowment Disclosures
Chapter 13 Granof & Khumawala 5e 38
![Page 37: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/37.jpg)
Chapter 13 Granof & Khumawala 5e 39
Scholarships
![Page 38: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/38.jpg)
Chapter 13 Granof & Khumawala 5e 40
Exchange Transactions
![Page 39: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/39.jpg)
Chapter 13 Granof & Khumawala 5e 41
![Page 40: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/40.jpg)
Chapter 13 Granof & Khumawala 5e 42
C&U that expend more than $500,000 of federal awards a year need a Single Audit.
Auditors will use government auditing standards (yellow book) and follow OMB Circular A-133 and AICPA SOP 98-3.
Auditors must be sure that the C&U has complied with the cost principles in OMB Circular A-21.
Auditing Issues in C&U
![Page 41: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/41.jpg)
Chapter 13 Granof & Khumawala 5e 43
C&U may have institutionally related foundations for fund-raising, alumni relations, or management of assets.
Related entities should either be disclosed in the Notes to the Financial Statements or reported as component entities, depending on the degree of control and economic interest.
The FASB and GASB both have projects on affiliated organizations and consolidations. FASB consolidation standard
was recently issued
Related Entities
![Page 42: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/42.jpg)
Chapter 13 Granof & Khumawala 5e 44
GASB Stmt. # 39 (2002) requires public universities* to report affiliated organizations as component units if these criteria are met:
The economic resources received or held are almost entirely for the direct benefit of the university,
The university is entitled to access those resources, The economic resources are significant to the university.
Discrete presentation is required, i.e., a separate column on the face of the financial statements.
*GASB # 39 is not exclusively for colleges and universities
GASB Stmt. # 39 Affiliated Organizations
![Page 43: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/43.jpg)
Chapter 13 Granof & Khumawala 5e 45
![Page 44: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/44.jpg)
Chapter 13 Granof & Khumawala 5e 46
![Page 45: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/45.jpg)
Chapter 13 Granof & Khumawala 5e 47
![Page 46: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/46.jpg)
Chapter 13 Granof & Khumawala 5e 48
![Page 47: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/47.jpg)
Chapter 13 Granof & Khumawala 5e 49
![Page 48: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/48.jpg)
Chapter 13 Granof & Khumawala 5e 50
![Page 49: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/49.jpg)
Chapter 13 Granof & Khumawala 5e 51
![Page 50: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/50.jpg)
Chapter 13 Granof & Khumawala 5e 52
![Page 51: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/51.jpg)
Chapter 13 Granof & Khumawala 5e 53
![Page 52: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/52.jpg)
Chapter 13 Granof & Khumawala 5e 54
However, this is not the practice recommended by NACUBO!
![Page 53: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/53.jpg)
Chapter 13 Granof & Khumawala 5e 55
![Page 54: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/54.jpg)
Chapter 13 Granof & Khumawala 5e 56
![Page 55: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/55.jpg)
Chapter 13 Granof & Khumawala 5e 57
![Page 56: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/56.jpg)
Chapter 13 Granof & Khumawala 5e 58
![Page 57: Chapter 13 · Chapter 13 Granof & Khumawala 5e ... and Accounting Guide for Colleges and Universities ... Related entities should either be disclosed in the](https://reader034.vdocuments.us/reader034/viewer/2022051802/5af3fddc7f8b9a95468d5856/html5/thumbnails/57.jpg)
Chapter 13 Granof & Khumawala 5e 59