GASB Proposed Revisions Memo
September 25, 2001
RE: Governmental Accounting Standards Board (GASB)
We are writing to bring to your attention a proposed revision to the accounting standards for governmental entities, including public colleges and universities, that would affect the reporting of financial data of affiliated foundations, associations, and other nonprofit organizations in the institution’s annual financial statement. For some colleges and universities, there may be broad policy and political implications to this proposed change, so we urge you to review the proposal and consider its impact on your institution.
The Governmental Accounting Standards Board (GASB) is a private entity, under the auspices of the Financial Accounting Foundation, that establishes standards of financial accounting and reporting for governmental entities. GASB issued an exposure draft on affiliated organizations on July 31 that will affect those public colleges and universities that rely on separate foundations to handle such activities as fund raising, athletic support, and research on behalf of the institution. The exposure draft is intended to provide additional guidance on determining whether an affiliated organization is a
component unit of a financial reporting entity. Financial information for component units must be discretely displayed in a separate column in an institution’s financial statements.
The exposure draft is available online at www.gasb.org/exp/rev_ed_ao.pdf. Comments will be accepted until October 31. In addition, public hearings are scheduled for October 29 in Phoenix and November 2 in New York.
The National Association of College and University Business Officers (NACUBO) is working with its Accounting Principles Council and chief financial officers of public colleges and universities to prepare a response to GASB. A survey has been posted to NACUBO’s Web site at www.nacubo.org to collect information about affiliated organizations and solicit input from members. The survey deadline is September 28.
NACUBO plans to post draft comments on the Web by the end of September. The enclosed one-page summary of the exposure draft also provides insight into the position that NACUBO is likely to take.
RE: Governmental Accounting Standards Board
September 25, 2001
We encourage you to review the exposure draft, discuss its implications for your institution with appropriate staff, and provide feedback to NACUBO. Please refer questions to Pauline Roberts at NACUBO at 202-861-2542 or Pauline.Roberts@nacubo.org. Sincerely,
On behalf of:
American Association of Community Colleges
American Association of State Colleges and Universities
American Council on Education
Association of American Universities
Association of Community College Trustees
Association of Governing Boards of Universities and Colleges
Council for Advancement and Support of Education
Hispanic Association of Colleges and Universities
National Association for Equal Opportunity in Higher Education
National Association of College and University Business Officers
National Association of State Universities and Land-Grant Colleges
- NACUBO Responds to White House College Affordability Plans
- Recommendations for Completing Form 1098-T
- Preliminary Results Show that College and University Endowments Returned 11.7 Percent in FY13
- 2014 Intermediate Accounting and Reporting - Winter
January 27-28, 2014
- 2014 Endowment and Debt Management Forum
February 5-7, 2014
- 2014 Facilities and Administrative Rates - Long Form
March 3-5, 2014
- WEBCAST: How Behavioral Changes Helped Cut Energy Usage in Half
Wednesday, December 18, 2013 1:00 PM ET
- ON-DEMAND: Developing a Market-Informed Approach to Tuition Pricing
- ON-DEMAND: Responsibility Center Management: The Process Necessary to Complete a Successful Implementation
- ON-DEMAND: OD: Responsibility Center Management: How Innovations Have Changed the Nature of RCM
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis