[Theodore]

Hi everyone! I am looking for a little bit of guidance
I started working for a non-profit not too long ago and I am having trouble with recognizing contribution revenue. We recently received a grant for 1/1/17 – 12/31/17, this overlaps with our fiscal year (i.e. 7/1/2016 – 6/30/2017 and 7/1/2017 – 6/30/2018). The grant is to be paid in four different payments and we are accrual basis. Since we have to perform services these are the advice I received

1. Record as payments come in
2. Record half of the grant amount by 6/30/2017 and the other half by 12/31/2017

I am assuming this is temporarily restricted since these funds are to be used for a specific program? Contribution revenue is kind of hard to understand

Please help

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[CPAIN2K17]

I think you would record them as you receive the payments as temporarily restricted, then move to unrestricted when the money is expended on the specific program.

[CPAIN2K17]

https://www.fasb.org/resources/ccurl/770/425/fas116.pdf

Try this.

[Anonymous]

Hi Rosy,
I work for NFP for a few years. If your grant award date is before or on 6/30/xxxx, it is recorded as grant income for that fiscal year and usually temporarily restricted. When meeting the restriction requirement in the following years (time restriction or purpose restriction), the grant fund is expended (unrestricted column in statement of activity/income statement) and the release from restriction is recorded.
If your grant award date is after 6/30/xxxx though you receive the notification before 6/30/xxxx, I would wait the new fiscal year then record the grant income on the awarded date. However, I will still put this awarded deferred grant info in footnote for audit purpose.

[Theodore]

Thank you all! I recorded it as a grant receivable and under Temporarily restricted and move the funds to unrestricted net assets as the grant gets satisfied with expenses regardless of when the payments come in. I believe this makes sense since we are accrual basis.

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Anonymous]

Yes, using grants receivable when recognizing the revenue because we use accrual.

[Author]

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