Expense Misreporting in Nonprofit Organizations

2006 ◽  
Vol 81 (2) ◽  
pp. 399-420 ◽  
Author(s):  
Ranjani Krishnan ◽  
Michelle H. Yetman ◽  
Robert J. Yetman
Keyword(s):  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Large Body ◽  
Positive Association ◽  
Financial Statements ◽  
Managerial Incentives ◽  
Managerial Compensation ◽  
Anecdotal Evidence ◽  
Financial Reports

We examine whether nonprofit organizations understate fundraising expenses in their publicly available financial statements. A large body of anecdotal evidence notes that an inexplicable number of nonprofits report zero fundraising expenses. We provide empirical evidence that the zero fundraising expense phenomenon is at least partly due to inappropriate reporting. We then examine to what extent these misreported expenses are the result of managerial incentives. Prior research finds an association between reported expenses and managerial compensation as well as the level of donations received. Using these findings we construct two incentive variables and find a positive association between misreporting behavior and managerial incentives. Our results also suggest that the use of an outside accountant reduces the probability that a nonprofit will misreport expenses, consistent with the use of an outside paid accountant increasing the reliability and usefulness of nonprofit financial reports. Finally, we find that SOP 98-2 reduced the probability that a nonprofit will misreport fundraising expenses.

Accounting Errors in Nonprofit Organizations

2015 ◽  
Vol 29 (2) ◽  
pp. 341-361 ◽  
Author(s):  
Jeffrey J. Burks
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Internal Control ◽  
Error Rate ◽  
Positive Association ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Reports ◽  
Public Charities ◽  
Accounting Errors

SYNOPSIS This study examines the accounting errors committed by public charities as revealed by searching for disclosures of their corrections in auditor reports, financial statements, and footnotes. A sample of 5,511 audited financial statements, predominantly from the years 2006 to 2010, was obtained from GuideStar, a data provider for nonprofits. Public charities report errors at a rate that is 60 percent higher than that of publicly traded corporations, and almost twice as high as that of similar-sized corporations. The errors are commonly errors of omission (i.e., failing to recognize items). The error rate has a strong positive association with internal control deficiencies and a strong negative association with Big 4 and second-tier auditors. Regressions are unable to detect a significant association between the error rate and organization size, type, or portion of the budget devoted to administrative activities. The error corrections often have low visibility in the financial reports issued by public charities; although they are reported in the footnotes of the audited financial statements, they often are not mentioned in auditor reports and in IRS Form 990s. The study improves our understanding of the accounting challenges faced by nonprofits, and may enhance nonprofit financial reporting by helping nonprofit managers and auditors understand the common circumstances and types of errors, and thus what activities to monitor more closely. The study also contributes to the academic literature by comparing the errors of nonprofits to those of corporations, by examining the outcomes of audits conducted by large as well as small auditors, and by advancing our understanding of discrepancies between audited and unaudited financial reports. Data Availability: Data are available from sources identified in the paper.

scholarly journals Analisis Pengaruh Sikap, Norma Subjektif dan Kontrol Perilaku Terhadap Minat Pelaku UMKM Untuk Menyusun Laporan Keuangan : Sebuah Bukti Empiris Dari UMKM di Kota Ambon

2020 ◽  
Vol 12 (1) ◽  
pp. 47-57
Author(s):  
Grace Persulessy ◽  
Pieter Leunupun ◽  
Marthen Jacob Leunupun
Keyword(s):  
Regression Analysis ◽  
Empirical Evidence ◽  
Behavioral Control ◽  
Financial Statements ◽  
Subjective Norms ◽  
Financial Reports

The purpose of this research is to determine the effect of attitudes, subjective norms, and behavioral control on interest in compiling financial reports on micro, small and medium (UMKM) actors. This research uses regression analysis with a sample of 186 UMKM actors. The results of the study found that attitudes, subjective norms and behavioral control had a positive and significant effect on the interest in preparing financial statements for UMKM players in Ambon city. The results of this study contribute to providing empirical evidence about factors that can influence interest in preparing financial statements.

scholarly journals PENERAPAN PSAK NOMOR 45 TENTANG PELAPORAN KEUANGAN ORGANISASI NIRLABA PADA SMK NEGERI 1 MANADO

2019 ◽  
Vol 14 (3) ◽  
Author(s):  
Mario Rantung ◽  
Harijanto Sabijono ◽  
Victorina Z. Tirayoh
Keyword(s):  
Quantitative Analysis ◽  
Qualitative Analysis ◽  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Research Method ◽  
Financial Statements ◽  
Financial Reports ◽  
School Activities ◽  
The World ◽  
Education Today

Along with the development of the world of education today, the Indonesian government is very serious in responding to the development of education to produce quality schools, this is also with considerable school activities. Things that must be accounted for and delivered through financial statements.This study aims to describe the presentation of financial reports on Nonprofit Organizations and to find out how to implement the application of PSAK number 45 concerning the Presentation of Financial Statements of SMK Negeri 1 Manado. The data research method used is qualitative analysis with qualitative analysis and quantitative analysis. Qualitative analysis to find out the comparative object of research is financial reporting at SMK Negeri 1 Manado with PSAK No. 45 and also with the preparation of budget and budget. Economic analysis to find out the values that arise from the financial statements of SMK Negeri 1 Manado The results of the analysis show that the preparation of financial statements at SMK Negeri 1 Manado has not been used to make financial statements, financial statements, and financial statements that are in accordance with the financial format contained in PSAK No. 45.

scholarly journals Penyusunan Neraca Dan Laporan Arus Kas Di Yayasan Masjid Al Fatah Comal Pemalang Sesuai PSAK No.45

2019 ◽  
Vol 16 (1) ◽  
Author(s):  
Jilma Dwi Ayu Ningtyas ◽  
Nor Rahayu
Keyword(s):  
Nonprofit Organizations ◽  
Cash Flow ◽  
Descriptive Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Reports ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Public Areas ◽  
Cash Flow Statement

ABSTRACT Public sector accounting used by public institutions as a means of accountability to the public. Institutional public areas include government non-profit organizations and non-governmental non-governmental organizations. exp (foundations, non-governmental organizations, religious organizations, political organizations, etc.)The mosque is one of the nonprofit organizations in the religious field, in accordance with PSAK 45 on Nonprofit Organizations, that nonprofit organizations should also and are entitled to make financial reports and report to users of financial statements (Andarsari, 2016). The purpose of this study is to prepare a statement of financial position and cash flow statement in accordance with PSAK No. 45 at Masjid Al Fatah Comal Pemalang Foundation. The research object is Al Fatah mosque foundation which is located in Purwosari Village RT 02 RW 08 District Comal, Regency Pemalang. The research method used is observation, interview and documentation with descriptive analysis. The output of this research is in the form of financial report of Masjid Al Fatah Comal Pemalang Foundation in accordance with PSAK No. 45 and shows the balance sheet position in balance state amounting to Rp 1,362,568,000, - and the cash flow statement shows the remaining unused cash of Rp 11,133,000. The researcher's suggestion in the preparation of financial statements needs to be followed up, because the financial information can be known in detail and to know the development of the mosque's foundation every year. and should use cash basis method to make it easier.Keywords                    : Financial Statements, Nonprofit Organizations, PSAK No.45Correspondence to      : [email protected] , [email protected] ABSTRAK             Akuntansi sektor publik adalah akuntansi yang dipakai oleh lembaga-lembaga publik sebagai alat pertanggung jawaban kepada publik. Secara kelembagaan wilayah publik antara lain meliputi organisasi nirlaba pemerintahan dan organisasi nirlaba non-pemerintahan meliputi organisasi sukarelawan, rumah sakit, sekolah tinggi dan universitas, serta organisasi-organisasi non pemerintahan lainnya (yayasan,lembaga swadaya masyarakat, organisasi keagamaan, organisasi politik, dan lain sebagainya). Masjid merupakan salah satu organisasi nirlaba dalam bidang keagamaan, sesuai dengan Pernyataan Standar Akuntansi Keuangan (PSAK) 45 tahun 2015 tentang Organisasi nirlaba, bahwa organisasi nirlaba juga harus dan berhak untuk membuat laporan keuangan dan melaporkan kepada para pemakai laporan keuangan (Andarsari,2016).  Tujuan dari penelitian ini adalah untuk menyusun laporan posisi keuangan dan laporan arus kas yang sesuai dengan PSAK No. 45 di Yayasan Masjid Al Fatah Comal Pemalang. Obyek penelitian adalah yayasan masjid Al Fatah yang beralamat di Desa Purwosari RT 02 RW 08 Kecamatan Comal, Kabupaten Pemalang. Metode penelitian yang digunakan adalah observasi, wawancara dan dokumentasi dengan analisis deskriptifHasil output penelitian ini berupa laporan keuangan Yayasan Masjid Al Fatah Comal Pemalang yang sesuai dengan PSAK No. 45 dan menunjukan laporan posisi keuangan (neraca) dalam keadaan balance yaitu sebesar Rp 1.362.568.000,- dan pada laporan arus kas menunjukan sisa kas yang belum digunakan sebesar Rp 11.133.000,-. Saran peneliti dalam hal penyusunan laporan keuangan perlu ditindaklanjuti, karena agar informasi keuangan dapat diketahui secara detil serta  untuk mengetahui perkembangan yayasan masjid setiap tahunnya. dan sebaiknya menggunakan metode basis kas (cash basic) agar memudahkan.Kata kunci      : Laporan Keuangan ,Organisasi Nirlaba, PSAK No.45Korspondensi  : [email protected] , [email protected]

scholarly journals Analisis Rekonstruksi Penyusunan Laporan Keuangan Masjid (Studi Kasus pada Masjid Agung Baiturrahman Banyuwangi)

2019 ◽  
Vol 6 (1) ◽  
pp. 69
Author(s):  
Arif Hidayatullah ◽  
Agung Budi Sulistiyo ◽  
Nur Hisamuddin
Keyword(s):  
Information System ◽  
Nonprofit Organizations ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Reports ◽  
Non Profit ◽  
Financial Transactions

The mosque is one of the non-profit oriented organizations in the field of religion in carrying out its activities, by managing its resources and resources derived from the community voluntarily and sincerely in accordance with the Statement of Financial Accounting Standards (PSAK) 45 on Nonprofit Organizations, That non-profit organizations should also and are entitled to make financial reports and report to users of financial statements. Mosques must make accurate financial statements and provide information to users of these financial statements ie the donors of the mosque. To be able to make accurate mosque financial statements required the application of accounting. Accounting is an activity undertaken untu produce sautu information system in the form of financial statements. Thus, mosques require the role of accounting as a tool for the process of managing, recording, interpreting, and reporting financial transactions that always guided by PSAK 109 and PSAK 45 set by the Indonesian Institute of Accountants (IAI) which will ultimately produce more transparent financial statements and Accountable. Keywords: Financial Statement of Mosque, Mosque, Nonprofit Organization,, PSAK 109, PSAK 45.

scholarly journals Analisis Hubungan Biaya Pengembangan Dengan Laba Bersih di PT Industri Telekomunikasi Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 125-136
Author(s):  
Kosasih
Keyword(s):  
Empirical Evidence ◽  
Research Methods ◽  
Negative Relationship ◽  
Secondary Data ◽  
Financial Statements ◽  
Net Income ◽  
Financial Reports ◽  
Verification Method ◽  
Development Costs ◽  
Library Studies

The purpose of this research was to obtain the empirical evidence on the correlation of development costs on net income at PT Telekomunikasi Indonesia Indonesia. The research methods used in this research is descriptive and verification method with a quantitative approach. The data used are secondary data from financial statements from 2010-2016 obtained through annual financial reports, observation, internet browsing, library studies, and interviews. The results showed that there is correlation between development costs on net income at PT Telekomunikasi Indonesia Indonesia. The correlation between development costs and net income has a negative relationship. This means when rising development costs then net income down, otherwise when development costs down then net income rises, so the research hypothesis is accepted.

Pengaruh Jumlah Dewan Komisaris, Leverage, Profitabilitas, Intensitas Modal, Cash Flow, Dan Ukuran Perusahaan Terhadap Konservatisme (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017)

2019 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Siti Suharni ◽  
Arini Wildaniyati ◽  
Dea Andreana
Keyword(s):  
Cash Flow ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Company Size ◽  
Manufacturing Companies ◽  
Financial Reports

This study is aimed at examining the effects of the Number of Board of Commissioners, Leverage, Profitability, Capital Intensity, Cash Flow, and Company Size toward Conservatism in the manufacturing companies listed on the Indonesian Stock Exchange (IDX). The population used in this study is the yearly financial statements on firm of manufacturing listed at BEI period 2012-2017, using purposive sampling method. The type of data used is secondary data obtained from yerly financial reports published and downloaded through the official BEI website. Data analyzed with Descriptive statistics, test of classic assumption and exmination of hypothesis with multiple linier regression method. The result of hypothesis research shows variable Profitability and Cash Flow have a significant effect on the ability of Conservatism, while the Number of Board of Commissioners, Leverage, Capital Intensity, and Company Size has no effect on the ability of Conservatism.

Timeliness of Tunisian Audit Reports: An Empirical Investigation based on Ownership and Partnership Visions

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Mondher Fakhfakh
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Qualitative Feature ◽  
Transmission Delays ◽  
Emerging Country ◽  
Audit Reports ◽  
Audit Information

Timeliness of audit reports is a qualitative feature that enhances the usefulness of audited financial statements. As an emerging country, Tunisia has modernized its accounting legislation to enhance the quality of financial reporting. This legislation encourages independent auditors to optimize the transmission delays of audit reports. The authorities assume that the satisfaction of stakeholders is secured by regulating disclosure of audit reports. Our research analyses the date of issue of Tunisian audit reports and timeliness of audit information for shareholders and all users of financial statements (stakeholders). This paper provides new empirical evidence about the timeliness of audit reports in Tunisia. It holds two dates that influence the needs of users of financial statements: the date of signature of the auditors and the date of publication of the audit reports in the financial bulletin. The same article discusses the variability of the timeliness of audit reports and the factors that explain the delay information.

Does Auditor Explanatory Language in Unqualified Audit Reports Indicate Increased Financial Misstatement Risk?

2014 ◽  
Vol 89 (6) ◽  
pp. 2115-2149 ◽  
Author(s):  
Keith Czerney ◽  
Jaime J. Schmidt ◽  
Anne M. Thompson
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Positive Association ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Accounting Principles ◽  
Client Relationship ◽  
Financial Misstatement ◽  
Audit Reports

ABSTRACT According to auditing standards, explanatory language added at the auditor's discretion to unqualified audit reports should not indicate increased financial misstatement risk. However, an auditor is unlikely to add language that would strain the auditor-client relationship absent concerns about the client's financial statements. Using a sample of 30,825 financial statements issued with unqualified audit opinions during 2000–2009, we find that financial statements with audit reports containing explanatory language are significantly more likely to be subsequently restated than financial statements without such language. We find that this positive association is driven by language that references the division of responsibility for performance of the audit, adoption of new accounting principles, and previous restatements. In addition, we find that (1) “emphasis of matter” language that discusses mergers, related-party transactions, and management's use of estimates predicts restatements related to these matters, and that (2) the financial statement accounts noted in the explanatory language typically correspond to the accounts subsequently restated. In sum, our results suggest that present-day audit reports communicate some information about financial reporting quality.

Indigenous reporting of a national housing corporation

2018 ◽  
Vol 36 (2) ◽  
pp. 221-233 ◽  
Author(s):  
Alistair Brown
Keyword(s):  
Papua New Guinea ◽  
Financial Reporting ◽  
Local Level ◽  
New Guinea ◽  
Financial Statements ◽  
Financial Reports ◽  
Content Type ◽  
Housing Corporation ◽  
Regulatory Instruments ◽  
National Housing

Purpose The purpose of this paper is to assess the level of reporting compliance achieved by the National Housing Corporation (NHC) of Papua New Guinea in terms of local indigenous reporting expectations. Design/methodology/approach Testing of a framework of indigenous accountability through indigenous enactments and regulations is conducted by textual analysis, which is informed by the theory of indigenous alternatives to assess the financial reporting compliance of the NHC of Papua New Guinea’s financial statements for years ending 2004-2013. Findings Documentary evidence of the state auditor reports of the NHC’s financial statements reveals that the corporation’s financial reports are not submitted for audit on a timely basis and receive disclaimed audit opinions. Despite the clear indigenous reporting expectations raised by local legislative and regulatory instruments, the NHC is unable or unwilling to provide an accurate account of their activities. Practical implications The lack of compliant reporting suggests that the planning, management and monitoring of the housing needs of residents of Papua New Guinea are compromised. There also appears merit in asking why parliament continues to fund the corporation given its difficulties in meeting local-level reporting expectations. Social implications The results have wider implications for the reporting ideologies of indigenous-run housing corporations operating in other developing countries. It might be fruitful to meet local reporting expectations before taking on the specialized reporting that accompanies introduced western-oriented policies on housing. Originality/value Accountability in relation to indigenous property management is constructed through a lens of reporting issues facing a developing country housing corporation.

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