I work at non profit that collects membership dues as deferred revenue. Deferred revenues become assets on the first day of new fiscal year on July 1. Membership dues payments from members come in beginning in around March, continuing to around August. Late fee are added for those who pay late. Member Services have few sections that serve different interests of members. National Conference is hosting biannually. National Conference gets revenues from registrations, not membership dues.
Currently, I am in fiscal year 2013. Fiscal year 2014 begins on July 1, 2013. National Conference date is in August 2013. I received check requests for paying conference organizers to plan national conference. They visited the conference site. I had to record travel, per diem, and hotel expenses. I coded them as current expenses to match membership dues revenues. Those expenses are used up. My colleague and my boss reviewed my codes. My colleague sometimes changed my conference planning expenses codes to prepaid expense code! She is inconsistent. She kept per diem expenses as current expense and changed travel and hotel expenses to prepaid expenses. She always looked at amounts of conference planning costs to determine whether it is current expense or not. My boss wants all of conference planning expenses and conference hosting expenses to match all of conference registration revenues in FY14. I told my boss that prepaid expense account is paradoxical code because it is mixed of used up expenses and unused expenses. in one pool. Prepaid expense account is supposed to have unused expenses only. I told boss that conference planning expenses can be matched to membership dues revenues.
GAAP says to record expense when benefits are received. GAAP also says to match revenues with expenses. I separate conference costs into conference planning costs and conference hosting costs. Who is right? me? my colleague? my boss? I think annual budget needs to be changed. Add conference planning costs in budget to match membership dues revenues.
I work at that non profit organization for 9 months. I suspect that independent auditors are not aware of unused expenses and used expenses in prepaid expenses code. The non profit organization gave poor information to independent auditors. It is difficult for independent auditors to do their work at the non profit organization.
Thanks
Currently, I am in fiscal year 2013. Fiscal year 2014 begins on July 1, 2013. National Conference date is in August 2013. I received check requests for paying conference organizers to plan national conference. They visited the conference site. I had to record travel, per diem, and hotel expenses. I coded them as current expenses to match membership dues revenues. Those expenses are used up. My colleague and my boss reviewed my codes. My colleague sometimes changed my conference planning expenses codes to prepaid expense code! She is inconsistent. She kept per diem expenses as current expense and changed travel and hotel expenses to prepaid expenses. She always looked at amounts of conference planning costs to determine whether it is current expense or not. My boss wants all of conference planning expenses and conference hosting expenses to match all of conference registration revenues in FY14. I told my boss that prepaid expense account is paradoxical code because it is mixed of used up expenses and unused expenses. in one pool. Prepaid expense account is supposed to have unused expenses only. I told boss that conference planning expenses can be matched to membership dues revenues.
GAAP says to record expense when benefits are received. GAAP also says to match revenues with expenses. I separate conference costs into conference planning costs and conference hosting costs. Who is right? me? my colleague? my boss? I think annual budget needs to be changed. Add conference planning costs in budget to match membership dues revenues.
I work at that non profit organization for 9 months. I suspect that independent auditors are not aware of unused expenses and used expenses in prepaid expenses code. The non profit organization gave poor information to independent auditors. It is difficult for independent auditors to do their work at the non profit organization.
Thanks