Overview: There are many types of governmental and nonprofit organizations, and they serve many different functions in our society. Governmental and nonprofit organizations are unlike traditional businesses in that they do not operate based on a profit motive; these organizations are motivated by public service, and often by a specific cause. Their revenue is obtained through taxes and fees from the citizens they serve, or by donations from outside benefactors. The financial reporting of these entities also differs from the traditional reporting of for-profit entities. There are some similarities, but there are many differences too, most notably in local and state governments. As a citizen of your local community, state, and country, you should understand how these organizations operate, account for financial transactions, and report the financial results of operations. As an accountant, you may one day find yourself employed by one of these types of organizations, or you may audit one of them. In either of these roles, it is very important for you to have an understanding of the unique financial accounting and reporting principles associated with these types of entities.

Southern New Hampshg University ACC 665 Milestone Two Guidelines and Rubric Overview: There are many types of governmental and nonprofit organizations, and they serve many different functions in our society. Governmental and nonprofit organizations are unlike traditional businesses in that they do not operate based on a profit motive; these organizations are motivated by public service, and often by a specific cause. Their revenue is obtained through taxes and fees from the citizens they serve, or by donations from outside benefactors. The financial reporting of these entities also differs from the traditional reporting of for-profit entities. There are some similarities, but there are many differences too, most notably in local and state governments. As a citizen of your local community, state, and country, you should understand how these organizations operate, account for financial transactions, and report the financial results of operations. As an accountant, you may one day find yourself employed by one of these types of organizations, or you may audit one of them. In either of these roles, it is very important for you to have an understanding of the unique financial accounting and reporting principles associated with these types of entities. In Milestone Two, you will complete sections | and II of Final Project I, the governmental and nonprofit accounting paper. You will describe the classifications and disclosures of capital assets, including the number and type of debt service funds associated with the governmental and nonprofit organizations you researched in Milestone One. You will also need to differentiate between the internal service funds and enterprise funds of your organizations. Prompt: In this assignment, you will continue to work through sections I and II of Final Project I, the governmental and nonprofit accounting paper. The numbering of the critical elements below corresponds with the numbering of critical elements in the Final Project I Guidelines and Rubric document. Specifically, the following critical elements must be addressed: I. Governmental Organization: In this section of your paper, you will select a local or state governmental organization and research its financial reports. E. Describe the classifications and disclosures of capital assets, including the number and type of debt service funds that the organization has. F. Differentiate between the internal service funds and enterprise funds of the governmental organization. II. Nonprofit Organization: In this section of your paper, you will select a nonprofit organization and research its financial reporting. E. Explain the funds that the nonprofit organization has, including their purpose and whether or not there are any restrictions to the funds. F. Identify the classifications and the amounts in each of the nonprofit's net assets, and explain the meaning of each classification. In this milestone submission, be sure to include at least four sources cited in APA formatting. Among these citations, you may include your textbook, a CAFR for the government agency you selected, the annual report of the nonprofit you selected, or any additional scholarly resources. Southern New Hampshire University Rubc Guidelines for Submission: Your paper should be 3-4 pages, double spaced, with one-inch margins, 12-point Times New Roman font, and formatting according to APA guidelines. Critical Elements Exemplary (100%) Procient (90%) Needs Improvement (70%) Not Evident (0%) Governmental Organization: Capital Assets and Debt Service sophisticated awareness of an Funds Governmental Organization: Service and Enterprise Funds Nonprofit Organization: Meets "Proficient" criteria, and Meets "Proficient" criteria, and Describes the classifications and description demonstrates a disclosures of capital assets, including the number and type of debt service funds that the organization has organization's capital assets and debt service funds Differentiates between internal service funds and enterprise funds Meets "Proficient" criteria, and differentiation demonstrates a nuanced understanding of fund allocation purposes Explains the funds that the organization has, including their purpose and whether or not there are any restrictions to the funds explanation demonstrates keen insight into the organization's funds Describes the classifications and Describes the classifications and disclosures of capital assets and disclosures of capital assets and debt service funds that the debt service funds that the organization has, but description organization has is cursory or contains inaccuracies Does not differentiate between internal service funds a nd enterprise funds Differentiates between internal service funds and enterprise funds, but differentiation is incomplete or contains inaccuracies Explains the funds that the organization has but does not include their purpose or a consideration of restrictions, or explanation is cursory or contains inaccuracies Does not explain the funds that the organization has Southern New Hampshg University Nonprofit Organization: Meets "Proficient" criteria, and Identifies the classifications and Identifies the classifications and Does not identify the classifications 22 Net Assets explanation makes cogent the amounts in each ofthe net ' and the amounts in each ofthe net connections between the net assets, explaining the meaning ' ' assets, and does not explain their assets and the classifications of each classification and contains inaccuracies, or meaning or discuss which funds discussing which funds would be explanation of meaning is lacking would be classified in each classified in each or cursory, or explanation does not include which funds would be classified in each Articulation of Submission is free of errors Submission has no major errors Submission has major errors Submission has critical errors Response related to citations, grammar, related to citations, grammar, related to citations, grammar, related to citations, gra mmar, spelling, syntax, and spelling, syntax, or organization spelling, syntax, or organization spelling, syntax, or organization that organization and is presented in that negatively impact readability prevent understanding of ideas a professional and easyto-read and articulation of main ideas format