Any Accountants here?

[rafzuh]

Hi all,

I'm a 'soon-to-be' designated accountant, but I had a question for ya'll in regards to an issue I'm having at work.

I'm auditing an organization which happens to be not for profit. But while discussing with some of the employees, I'm hearing more of the company expensing some of their volunteer services (approx. $50,000 worth - Total labour cost however is 5 times that, so this volunteer services is a small portion).

Expensing volunteer services - is that allowed under GAAP? Is it only not allowed when the fair value of those services can not be determined?

Thanks.

Rafi

 

[big dogie]

Call CRA and ask them...lol..... I called and asked their 'difficult question line' and asked a difficilt question.... their response was deal with it as you think it should be then we will audit you and probably tell you you are wrong....my call was on 'cost base'... so how am I supposed to tax plan with that answer....sheesh

b d

 

[Mr. Lucky]

That would be Cycleguy007 but he's on a long vacation

 

[dragnbiz]

Why not ask your senior or manager ? That's what they are there for.

 

[Cassini]

Expenses are expenses. They have to be filed somewhere. Expenses related to volunteers are not capital. If volunteer expenses are a small portion of the total payroll, it would make sense to include them there, because they are employment related expenses.

If however, the company is deducting a salary for the volunteer, then not paying the volunteer, that is not good. I would say that you should talk to someone in your professional organization. On the surface, it looks like a payroll scam, where the senior management are artificially reducing their total income tax payable by creating bogus employees. Handle this situation with discretion, otherwise you may find your accounting career very short.

FYI: Posting private accounting questions on an escort review board will not endear you with your professional organization either.

 

[Thousand]

Just go with that Objectivity Principle in GAAP.

 

[freestuff]

FYI: Posting private accounting questions on an escort review board will not endear you with your professional organization either.

Obviously, OP is not going to tell anyone about this.

 

[RAWD]

Relax, this is on a no-names basis.

First, does this NPO issue receipts for donations in-kind (i.e., non cash)?

Are there valuation issues with the donations? (e.g., is it artwork of dubious value that has been generously "appraised"?)

Has the NPO received a lot of $$$ that were receipted?

Do you see where I'm going with this?

Boosting expenses is a classic cover-up for NPOs with a donation problems. They need to prove enough qualified expenditures to keep their registration.

Document the sh!t out of this.

If the manager or partner do not respond appropriately, run it up the chain, to your national standards group, if necessary.

You have to look out for yourself.