This paper explores two Canadian Not-Profit Organizations (NPOs). Here, the selected NPOs are the Alberta Health Service (AHS) and the Toronto District School Board (TDSB). These NPOs have both financial reporting requirements motive and nature of the NPO’s rules. The paper discusses their motive and nature of the operation, and the adherence to the present day accounting rules/ monetary reporting for NPOs. Moreover, the selected NPOs’ sources of cash, as properly as their use, is also explored accordingly.
Purpose and Nature
In summary, the foremost objective of the monetary reporting necessities of AHS in the regulations of the economic reporting is to deliver necessary facts to indispensable areas. The financial reporting helps in the provision of fundamental facts with the aim of offering good accountability. In nature, the financial reporting is essential for the accountability of the legislated and organization requirements, governance, as well as the achievements in relation to financial results and the health plan of the AHS. Naturally, the Alberta Health Service Board receives and approves the AHS financial report (Choi & Moon, 2017).
In the same way, the Toronto District School Board (TDSB) also has its main purpose and nature of the financial reporting requirements for the NPO’s rules. In this case, the primary purpose of the financial reporting requirements is to meet the common needs of the information of the financial information’s external users. The requirement of the financial reporting is to provide both the prior and current year information concerning the TDSB. In nature, such information revolves around the performance of the economy, as well as the obligations, economic resources, and the net assets (Oster & Toth, 2016). Just like the AHS, the TDSB also reviews and approves the financial reporting for the Toronto District School.
Practically, there is a requirement of the NPOs to prepare and report their financial statements according to the Canadian Accounting Standards. Normally, NPOs does not have a transferable interest of ownership. Exclusively, this entity operates purposely for educational, social, charitable and other similar activities.
Adherence to the Current Accounting Rules/ Financial Reporting for NPOs
These two organizations (AHS and TDSB) adhere to the current accounting rules/ financial reporting for NPOs. For the AHS, the financial statements for 2015/2016 are the management’s responsibilities (Choi & Moon, 2017). For this reason, the senior management is charged with the responsibility of viewing and approving such statements. According to the auditors, the AHS’ were prepared in accordance with the current accounting rules/ financial reporting for NPOs of Canada. Furthermore, the Alberta Health issued the financial directives. Estimates and judgment are included in the directives.
Accordingly, the management maintains the internal control and the financial management’s systems with the aim of discharging its responsibility for the financial reporting’s objectivity and integrity. Such internal control and financial management results in consideration of the benefits, costs, and other risks designed for the provision of assurance that is reasonable regarding the proper authorization of transactions. In this organization, the Alberta’s Auditor General meets with the committee for reviewing the matters of finance. Afterward, they give a recommendation of the financial statements to the AHS boards for the purposes and approval upon the auditor’s finalization. Here, all the statements are ensured to adhere to the to the current accounting rules/ financial reporting for NPOs.
Just like the AHS, the TDSB also provides financial statements in accordance with the current accounting rules/ financial reporting for NPOs of Canada. In the first place, the board of school has to submit a budget plan that is well balanced to the education ministry at the end of every year. The most important part of the process of the budget at the TDSB is the public consultation. It a requirement that these organizations post information that regards their financial outlook. In 2015/2016 financial year for example, externally audited statements were prepared and posted detailing the TDSB’s financial positions (Oster & Toth, 2016).
” The Main Purpose of Being”
AHS act as the single health authority for Alberta’s Canadian province. Its primary purpose of being is to deliver medical care on the ministry of health of the government of Alberta’s behalf. AHS use about 400 facilities throughout the province for the delivery of the medical care (Choi & Moon, 2017). Additionally, such care is delivered through clinics, hospitals, and other continuing facilities of care, health sites of communities, and mental health facilities, as it provides several services and programs. There are three broad goals articulated by the AHS. These goals include the quality, access, and sustainability for the expansion of the eight areas of focus. The primary areas of focus include the fitting of the future, the improvement of access, learning and improving facilities, as well as other twenty more strategic priorities.
Also, the TDSB was created for several reasons. Practically, its models are based on the provision of discretionary funds’ equitable distribution to schools. Furthermore, the organization aims at enhancing the local authority for the planning for the full year. Here, the schools have to be informed of the decretory funds that are available to them at the school year’s beginning. This organization also attempts to enable the school’s flexibility for spending discretionary funds with the aim of meeting the students’ needs. Another TDSB’s “main of purpose of being” is to provide a clear process for reporting of a school budget responsibilities that enhance the local accountability (Oster & Toth, 2016).
Sources of Cash and their Use
In 2015/ 2016 financial year, the AHS received the funding’s bulk of 14.3 billion dollars (Choi & Moon, 2017). This amount represents an increase of 175 million dollars in the year. Correspondingly, TDSB obtains a lot of funding for students from low-income backgrounds.
Some of the sources of cash include;
Car park charges
Primary care networks (PCNs). PCNs are very beneficial to the Alberta Health Services
Fee payments (TDSB)
Some of the use of the cash include:
Building the health infrastructure (AHS) – $ 900 million
Building of the school infrastructure (TDSB) – $ 700 million
Creation of a new clinical information system (AHS) – $ 400 million
Development of the future education and health projects (for both TDSB and AHS) – $ 250 million
Providing meals to students (TDSB) – $ 300 million
It has been revealed that each of the organizations has their unique purposes. For example, AHS’ main objective is to deliver vital information to crucial areas. Again, the TDSB also aims to meet the information’s common needs the financial information’s external users. The two organizations adhere to the current accounting rules/ financial reporting for NPOs. Some of the cash that the organizations get is put into productive use.
Choi, E., & Moon, H. (2017). Within-District School Lotteries, District Selection, and The Average Partial Effects of School Inputs. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.2943619
Oster, R., & Toth, E. (2016). Longitudinal Rates and Risk Factors for Adverse Birth Weight Among First Nations Pregnancies in Alberta. Journal of Obstetrics and Gynaecology Canada, 38(1), 29-34. http://dx.doi.org/10.1016/j.jogc.2015.10.011
Appendix 1: AHS (Alberta Health Service)
Appendix 2: TDSB (Toronto District School Board)