Questions and Answers of Accounting For Governmental And Nonprofit Entities

Group dynamics affect the culture of the board. What do you think are the key elements to take into account when a new member arrives?
How would lack of trust between the board and the chief executive manifest itself ? What would be the consequences for the organization?
What does it look like when a board engages in groupthink? What are the pitfalls of such behavior? What are some techniques for overcoming groupthink?
Discuss the impact of a charismatic founder on the board culture and processes.
Why is it difficult for many nonprofits to measure and evaluate their impact?Can you think of any nontraditional ways of assessing the effectiveness of an organization?
List some qualities of a productive board meeting.
How often do you think boards should evaluate their own performance?Why?
Peer evaluations are a controversial and sensitive issue on many boards. What is your opinion about them and why?
Discuss the pros and cons of a 360 - degree evaluation of the chief executive ’ s performance.
What would you include in a dashboard report for a university, a museum? For a land trust? For a professional association?
List specific bylaws clauses that are bound to change as the organization evolves. How might these issues be handled in a start - up board and then in a more mature board?
How do you draw the line between what is too detailed for the bylaws and what processes should be explained in that document? Why is this an issue?
If the bylaws give the members specifi c rights to infl uence how the board functions, why should a bylaws clause also give the members the right to approve amendments to the document?
What types of financial policies should the board regulate and what types belong to the staff ?
What differences distinguish succession planning, chief executive transition, and emergency planning?
How should the leaving chief executive be involved in the succession planning and transition process?
Discuss the benefi ts of hiring an outside interim chief executive. What are the pros and cons of a board member acting as the interim chief executive?
Think of good questions to ask the fi nalists for the chief executive position.
Discuss the validity of the “ give, get, or get off ” statement.
Few board members were born with natural fundraising skills. What are the most effective ways to involve every board member in fundraising?
Discuss the potential fundraising effectiveness of a board with or without a development committee.
Why do capital campaigns start with a lengthy silent period? What is the board ’ s role in a successful capital campaign?
Draft elevator speeches for Greenpeace, Planned Parenthood, March of Dimes, and the American Institute of Certifi ed Public Accountants (AICPA).
Why do most strategic planning processes start with examining the mission?
How are the mission and vision linked to each other?Choose an organization you know well and list the issues to which you should pay attention as you analyze its external and internal contexts.
What is the difference between a board that is a strategically thinking board and a board that diligently goes through strategic planning every three to fi ve years? Or is there necessarily a
Can you think of other methods of planning besides the traditional method mainly described in this book? When would an organization choose a different approach?
When we say that board members should act as the organization ’ s ambassadors, how do you think they could best fulfill this role?
Do you think a board member is always a board member, whether in the boardroom or carrying on private activities? Why or why not?
If the media contacts a board member in reference to the organization, what should her response be?
Do you think that private foundations should encourage and be allowed to fund lobbying activities? Why or why not?
List ways that a charity could cut costs when involved in lobbying.
Public charities are strictly prohibited from engaging in political campaigns for or against a candidate. Why do you think this is the case?
How should a board react to an unsolicited request from an individual who wants to serve on the board?
Is it a good idea for a board to use application forms as a recruitment method?
Discuss how boards could best achieve diversity of thought. How does this relate to diversity of the composition of the board?
Should family members serve on the same board?
Give examples of how a board member can increase the organization ’ s social, intellectual, and fi nancial capacity.
How do you convince a new member to go through orientation if he has already served on numerous boards and feels he understands what board service is all about?
Veering off the mission is one of the key challenges in the boardroom. Why is mission focus so essential to an organization?
List specific examples of a board not meeting the duties of care, loyalty, and obedience.
Corporate board members are compensated for their service. Why do nonprofits generally see board service as a volunteer commitment?
Should every board have directors ’ and officers ’ insurance? Why or why not?
Discuss differences between private inurement and private benefit. Why do nonprofit organizations need to differentiate between these two concepts?
How do you define “ fiduciary duty ” ?
What level of financial acumen is adequate for a board member? Why?
Discuss effective ways to increase the board ’ s capacity to deal with complicated financial issues.
What questions should the board ask when determining adequate operational reserves for the organization?
When does it make sense for an organization to consider forming an endowment?How would an endowment influence the need for fundraising?
Draft an internal controls fl ow chart for a humane society with four staff members and seven board members. Which aspects of handling of cash, accounting, budgeting, fi nancial statements, and fi
When should an organization consider conducting independent audits?
Define the differences between the respective authorities, responsibilities, and liabilities of an individual board member and those of the full board.
What are some ideal ways for the board and staff to communicate with each other?
What is meant by “ board - driven ” and “ CEO - driven ” organizations? What might be the distinctive characteristics of each?
What might cause board members to micromanage?
When a board member leaves the board, when is it desirable or wise to keep this person involved with the organization? How could this be accomplished?
How should a board define its optimal size? What issues influence this choice?
When should a board consider forming a governance, development, audit, membership, and compensation committee? Or should any of these be task forces?
What might be the challenges of a board member serving on an organizational committee?
What can happen when an executive committee has too much power and autonomy?
What are some potential roles for advisory councils? How can organizations use these groups effectively?
Why would a founder decide to form a membership organization rather than choosing a self - perpetuating board? When might this structure be essential?When might it be an unnecessary challenge?
Discuss the ways in which a federated system can be formed. What are the key roles of the national board and the chapter boards? How do the national staff and the chapter staff best relate to this
A constructive partnership between the chair and the chief executive is vital to every nonprofit. Why is this true — or does it always matter?
For the most part, chairs change regularly, but the chief executive stays in place for a longer period of time. How can this situation affect the dynamics of the two positions?
If the chief executive insists on a vote on the board, what questions should the board ask before making the decision?
Describe how nonprofits intersect with your daily life.
What circumstances might influence the growth or shrinkage of the nonprofit sector?
Define public trust , and discuss why it should be important for a tax - exempt organization.
Discuss what a productive collaboration between a nonprofit, a for - profit, and the public sector might look like.
If you wanted to establish a homeless shelter in your community, what are the decisions and choices you would have to make along the way?
List the different ways nonprofit tax - exempt organizations can or should self - regulate.
What might be the differences between a nonprofit ’ s initial board and the board that has been in place for twenty years?
How would you defi ne the difference between a responsible board and an exceptional board?
Formulate some hypothetical examples of organizations in each stage of the life cycle.
If the city in the previous question decides to keep the property for its own use, what amount of expenditures and revenues should be recognized?a. $0b. $39,000c. $50,000d. None of the above.Data
Refer to the previous question. What amount of tax revenues should be recorded in the Revenues Subsidiary Ledger for the transaction?a. $744,310.b. $759,500.c. $775,000.d. None of the
Expenditures of $200,000 were made during the year on the fire station in the previous question. This transaction requires accounting recognition in thea. General Fund. b. Capital Projects Fund. c.
Which of the following bodies play significant roles in establishing GAAP for government health care providers?a. GASBb. FASBc. AICPAd. All of the above.e. Items a and b only.f. Items a and c only.
Government hospitals are reported similar toa. enterprise activities.b. governmental funds.c. governmental not-for-profits.d. All of the above.e. None of the above.
The primary differences between hospital accounting and business accounting includea. certain revenue recognition practices.b. the types of equity accounts used in reporting.c. the way in which
A gift to a government hospital that is restricted by the donor to use for a specific program should be credited directly toa. restricted net assets.b. deferred revenue.c. revenue.d. unrestricted net
Donated medicines that normally would be purchased by a government hospital should be recorded at fair market value and should be credited directly toa. other operating revenue.b. nonoperating
Although their use is optional, the types of restricted funds often used in hospital financial accounting includea. specific purpose funds.b. endowment funds.c. plant replacement and expansion
Which of the following statements concerning the accounting and financial reporting practices for revenue in government hospitals is false?a. Only the amount of patient service charges that one has a
Which of the following statements best describes the accounting and financial reporting for the donation of professional services?a. The reporting of contributed services by a government hospital is
Which of the following classifications of equity would not be reported on a governmental hospital's balance sheet?a. Invested in capital assets, net of related debtb. Fund balancec. Restricted net
On July 1, 20X5, Lilydale Hospital's board of trustees designated $\$ 200,000$ for expansion of outpatient facilities. The $\$ 200,000$ is expected to be expended in the fiscal year ending June
During the year ended December 31, 20X5, Melford Hospital received the following donations stated at their respective fair values:Employee services from members of a religious group ... \$ 100,000
Glenmore County Hospital's property, plant, and equipment (net of accumulated depreciation) consists of the following:Land $\$ 500,000$Buildings $10,000,000$Equipment (purchased from restricted
Which of the following would normally be included in other operating revenues of a government hospital?a. Unrestricted interest income from an endowment.b. An unrestricted gift.c. Donated services.d.
For the year ended December 31, 20X5, how much should Abbey report as patient service revenue in its Statement of Revenues, Expenses, and Changes in Net Assets?a. $\$ 6,000,000$b. \(\$
For the year ended December 31, 20X5, Abbey should report the donation of bandages asa. a $\$ 1,000$ reduction in operating expenses.b. nonoperating gain of $\$ 1,000$.c. other operating revenue
A government hospital is required to present all of the following financial statements excepta. a Statement of Net Assets.b. a Statement of Cash Flows.c. a Budgetary Operating Statement.d. a
GAAP for nongovernment not-for-profit hospitals are primarily established by thea. GASB.b. FASB.c. AICPA.d. None of the above.
Equity classifications for nongovernment not-for-profit hospitals include all of the following excepta. invested in capital assets, net of related debt.b. unrestricted net assets.c. permanently
Which of the following statements about a nongovernment not-for-profit hospital Statement of Cash Flows is false?a. A nongovernment not-for-profit hospital Statement of Cash Flows classifies the
A government hospital has the following assets, among others:1. Investments of $\$ 2$ million from a donation made specifically for the purpose of defraying part of the cost of enlarging the
A government hospital received two gifts in 20X5. The first gift, for $\$ 3,000,000$, was restricted to a specific operating purpose. Costs incurred during the year that qualified for use of the
Formal notification that Congress has enacted an appropriation for an agency requires recognition by the agency ina. budgetary accounts only.b. proprietary accounts only.c. both budgetary and

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