The 2012 financial report is a big story.

[BORZAK]

Two words. Al Davis!

 

[Orangepace]

Again, it depends on how they manage their accounting - Is it cash basis (realized) or accrual basis (recognized). I'm assuming that it's accrual basis and the $19M represents incurred expenses, whether they've been paid or not.

I believe that due to the size of the organization and their stakeholders, they likely wouldn't be able to get away with cash basis. So I'm going forward on the premise that this is accrual basis.

That said, I have some experience with accrual basis for NPO's, which is very different from gov't/yellow book accounting. The future Meadowlands funds would not be presented at all until they come to fruition, unless of course money was received. So, there would be no deferred/unearned revenue on the books unless of course they actually received money, which we agreed is highly unlikely. You would not gross up the balance sheet in this circumstance. There would obviously also be no income statement impact..

Just wanted to clarify.

 

[Orangepace]

I believe that due to the size of the organization and their stakeholders, they likely wouldn't be able to get away with cash basis. So I'm going forward on the premise that this is accrual basis.

That said, I have some experience with accrual basis for NPO's, which is very different from gov't/yellow book accounting. The future Meadowlands funds would not be presented at all until they come to fruition, unless of course money was received. So, there would be no deferred/unearned revenue on the books unless of course they actually received money, which we agreed is highly unlikely. You would not gross up the balance sheet in this circumstance. There would obviously also be no income statement impact..

Just wanted to clarify.

Btw.. I confirmed this with a friend who used to work on the audit team that served SU in the past.

Another interesting note... the University, though an IPO, is private and doesn't have the same reporting rules necessarily as a public university which accepts a great deal of government funding.

 

[Orangepace]

Two words. Al Davis!

Gosh, I only hope he finally sent us some $$$.

 

[texascpa]

I believe that due to the size of the organization and their stakeholders, they likely wouldn't be able to get away with cash basis. So I'm going forward on the premise that this is accrual basis.

That said, I have some experience with accrual basis for NPO's, which is very different from gov't/yellow book accounting. The future Meadowlands funds would not be presented at all until they come to fruition, unless of course money was received. So, there would be no deferred/unearned revenue on the books unless of course they actually received money, which we agreed is highly unlikely. You would not gross up the balance sheet in this circumstance. There would obviously also be no income statement impact..

Just wanted to clarify.

Sounds good. NPO accounting is kind of tricky and generally doesn't make a lot of sense.

 

[Orangepace]

Sounds good. NPO accounting is kind of tricky and generally doesn't make a lot of sense.

Agreed... there's a reason you and I are with for-profit entities.. Always felt like even working on an NPO audit you had to have some sense of giving back... I have nothing that I feel strongly enough about that I would commit myself to that.