The coronavirus pandemic has drastically altered your industry’s operations with remote learning requirements, drops in funding, shifting event schedules and more. While CARES Act aid can assist with resulting changes in your operations, the funds have also created more complexity in the financial reporting process. As a result, the Governmental Accounting Standards Board released GASB Technical Bulletin 2020-1 to help entities following governmental accounting standards better understand the various reporting requirements.
GASBTB 2020-1 compiles six of the most commonly asked questions from the public sector regarding the Higher Education Emergency Relief Fund (HEERF), Provider Relief Fund (PRF), Paycheck Protection Program (PPP) and other initiatives. Upon its release last fall, it became effective immediately.
The bulletin covers several areas of concern, including:
- Whether resources provided through the CARES Act to business-type activities should generally be reported as nonoperating revenues
- Whether resources received from the Coronavirus Relief Fund are subject to eligibility requirements or purpose restrictions
- Whether PPP loan funds should be reported as a liability in financial statements if legal forgiveness has not yet been granted
- Whether to report resources incurred in response to actions taken to slow the virus as “extraordinary items” or “special items”
Click here to read the complete guidance. While GASBTB-2020-1 addresses many common concerns, we also suggest you consult James Moore’s higher education CPAs for assistance. We’re following this and other guidance as it emerges to help you stay in compliance regarding financial reporting.
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