The Accounting Errors of Public Charities: Characteristics, Predictors, and Consequences

2012 ◽  
Author(s):  
Jeffrey J. Burks
Keyword(s):  
Public Charities ◽  
Accounting Errors

Accounting Errors in Nonprofit Organizations

2015 ◽  
Vol 29 (2) ◽  
pp. 341-361 ◽  
Author(s):  
Jeffrey J. Burks
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Internal Control ◽  
Error Rate ◽  
Positive Association ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Reports ◽  
Public Charities ◽  
Accounting Errors

SYNOPSIS This study examines the accounting errors committed by public charities as revealed by searching for disclosures of their corrections in auditor reports, financial statements, and footnotes. A sample of 5,511 audited financial statements, predominantly from the years 2006 to 2010, was obtained from GuideStar, a data provider for nonprofits. Public charities report errors at a rate that is 60 percent higher than that of publicly traded corporations, and almost twice as high as that of similar-sized corporations. The errors are commonly errors of omission (i.e., failing to recognize items). The error rate has a strong positive association with internal control deficiencies and a strong negative association with Big 4 and second-tier auditors. Regressions are unable to detect a significant association between the error rate and organization size, type, or portion of the budget devoted to administrative activities. The error corrections often have low visibility in the financial reports issued by public charities; although they are reported in the footnotes of the audited financial statements, they often are not mentioned in auditor reports and in IRS Form 990s. The study improves our understanding of the accounting challenges faced by nonprofits, and may enhance nonprofit financial reporting by helping nonprofit managers and auditors understand the common circumstances and types of errors, and thus what activities to monitor more closely. The study also contributes to the academic literature by comparing the errors of nonprofits to those of corporations, by examining the outcomes of audits conducted by large as well as small auditors, and by advancing our understanding of discrepancies between audited and unaudited financial reports. Data Availability: Data are available from sources identified in the paper.

scholarly journals Pengaruh Sistem Pengendalian Intern Pemerintah dan Moralitas Individu pada Kesalahan Akuntansi

2018 ◽  
pp. 1170
Author(s):  
I Gusti Agung Gde Dennyningrat ◽  
I D.G. Dharma Suputra
Keyword(s):  
Control System ◽  
Internal Control ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Internal Control System ◽  
Negative Effect ◽  
The Government ◽  
Questionnaire Method ◽  
Accounting Errors

Accounting mistakes are a mistake in financial facts. In order for an agency or company does not occur accounting errors, agencies or companies need to consider the factors that affect accounting errors. The purpose of this study is to provide empirical evidence of the effect of Government Internal Control System and individual morality on accounting errors. This research was conducted at Local Government of Badung Regency. Population in this research is all financial officer at Badung Regency Government. The number of samples taken as many as 35 employees, with purposive sampling technique. The data were collected by questionnaire method. Data analysis technique used is multiple linear regression analysis. Based on the results of the analysis, it is known that the Government Internal Control System and individual morality have a negative effect on accounting errors in Badung District Government.

ARNOVA's Symposium on Public Policy for Nonprofits

2011 ◽  
Vol 2 (1) ◽  
Author(s):  
Thomas Jeavons
Keyword(s):  
Public Policy ◽  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
Federal State ◽  
Voluntary Organizations ◽  
Public Charities ◽  
State And Local ◽  
The Impact ◽  
Local Levels

There are serious gaps in our knowledge and understanding of how public policy at the federal, state, and local levels affects the work of a wide array of nonprofit organizations. On October 4th and 5th, 2010, the Association for Research on Nonprofit Organizations and Voluntary Organizations (ARNOVA), with the support and encouragement of the Bill and Melinda Gates, Kresge and C.S. Mott foundations, convened a group of thirty nonprofit scholars and leaders to explore what we know about the impact of public policy on the nonprofit sector. The conference focused on how public policy helps or harms the ability of nonprofit organizations, particularly but not exclusively public charities, to fulfill their missions.

On the Threshold of Compliance Public Charities and the Public Support Test

2021 ◽  
Author(s):  
Ashley Newton
Keyword(s):  
Financial Support ◽  
Public Support ◽  
Large Sample ◽  
The Public ◽  
Public Charities ◽  
Support Threshold

This study investigates how public charities respond to the public support test – an IRS requirement that at least one-third of a public charity’s financial support is derived from public sources.  Using a large sample of 836,920 charity-year observations during 2009-2018, I find that a disproportionately large number of charities exceed the 33⅓% public support threshold by a small margin.  This result holds only for public charities actually subject to the test (six years of age or older) and not young charities that automatically retain public charity status.  Further, I find that charities that unexpectedly just meet public support test are more likely to understate fundraising expenses.  This evidence implies that the public support levels of charities that just surpass the 33⅓% threshold are likely misrepresented.  Overall, my findings provide new insights into a vitally important regulatory threshold that has been largely neglected in existing research.

scholarly journals Trial by Jury, as to the Existence of Insanity, in Illinois, and the use of Chloral, Restraint, and Assault in an American Asylum

1879 ◽  
Vol 25 (109) ◽  
pp. 141-142
Keyword(s):  
The State ◽  
Special Report ◽  
Public Charities

We have received a copy of a special report of the Board of State Commissioners of Public Charities of the State of Illinois, regarding the death of a Col. Hull, in the Asylum, at Elgin. In that State a trial by jury seems to be necessary to send a man to an asylum, however insane he may be; but the problem of doing this with safety, expedition, and without even the knowledge of the patient who is being tried, has been cleverly solved by the Americans.

When Religion Is Paid to Be Silent

Worldview ◽  
1973 ◽  
Vol 16 (4) ◽  
pp. 32-37
Author(s):  
Dean M. Kelley
Keyword(s):  
Income Tax ◽  
Symphony Orchestras ◽  
Circuit Court ◽  
Internal Revenue ◽  
Court Of Appeals ◽  
Public Charities ◽  
Federal Income Tax

On December 18, 1972, the Tenth U.S. Circuit Court of Appeals in Denver handed down a decision which may be momentous not only for churches but for all organizations (hospitals, colleges, symphony orchestras, museums and other "public charities") exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. The court took away a religious organization's tax exemption because it had engaged injpolitical activity, yet the decision has gone almost unnoticed in the great metropolitan newspapers of the East.

scholarly journals Balance sheet insolvency and contribution revenue in public charities

2020 ◽  
Vol 186 ◽  
pp. 104177
Author(s):  
Tatiana Homonoff ◽  
Thomas Luke Spreen ◽  
Travis St. Clair
Keyword(s):  
Balance Sheet ◽  
Public Charities

Fundraising in Human Service Nonprofits

2013 ◽  
Author(s):  
Kirsten A. Grønbjerg
Keyword(s):  
At Risk ◽  
Human Service ◽  
Driving Force ◽  
Government Funding ◽  
Charitable Contributions ◽  
United Way ◽  
Private Foundations ◽  
Public Charities ◽  
Tax Exempt ◽  
Corporate Contributions

Of the 1.6 million tax-exempt organizations registered with the IRS in August 2016, about one fourth are human service nonprofits, including about 290,000 charities with about $230 billion in total combined revenues. In 2016, human service public charities (excluding private foundations) received an estimated $47 billion in charitable contributions. This represents 12% of all charitable contributions, according to the Giving USA Foundation, and is about 21% of the combined revenues reported by the more than a quarter million registered human service public charities. While government funding is a major driving force for human service charities, philanthropic funding clearly is important as well. Securing such funding requires solid understanding of the fundraising process and dedicated time and effort, however. Moreover, competition for donations (and fundraising expertise) appear to be growing across the board, with donations from individuals, United Way, and corporate contributions most at risk for human service charities.

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