Net Asset Classification at The Pennsylvania State University
Kevin Mahood - The Pennsylvania State University
Katie Thornton – Plante Moran
This session will cover the process the Pennsylvania State University and Plante Moran went through related to an overall review and clarification project on the University’s $14.8 billion of Net Assets. The review identified several key challenges, including the application of FASB net asset classifications, the complexity associated with donor restrictions (or lack thereof), nuances with meeting restrictions, and the presence of outdated or missing documentation. These issues were compounded by having much of the documentation processed on a decentralized basis. To address these concerns effectively, a practical review approach was adopted, beginning with the most significant issues before progressing to more detailed areas, ensuring both clarity and manageability throughout the process. The institution also took steps to enhance processes and controls over new gifts to ensure classification documentation was maintained and approved by the appropriate University personnel.
Learning Objectives
- Define the FASB net asset classifications.
- Describe nuances for net assets with donor restrictions considerations.
- Conduct a review of their institution/foundation's net asset classifications.
CPE Available
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