ACC-322 at Southern New Hampshire University is Governmental and Non-Profit Accounting.
As the title shows, it covers two sectors that do not exist to earn profit for owners: state and local governments, and not-for-profit organizations such as charities, hospitals and universities.
Both answer to different readers from a business (taxpayers, donors, grantors, oversight bodies), and both follow reporting rules designed around accountability for resources rather than profit.
Students who have just finished intermediate accounting often find this course disorienting. Governments use separate funds, a different basis of accounting for some of them, and budgetary entries that are recorded in the books.
Not-for-profits classify net assets by donor restriction. The logic is consistent once you see the purpose behind it, but the vocabulary is new.
Course at a Glance
| Item | Details |
|---|---|
| University | Southern New Hampshire University (SNHU) |
| Course code | ACC-322 |
| Level | Undergraduate, upper level |
| Subject area | Governmental and not-for-profit accounting |
| Standard setters | GASB (state and local governments); FASB (private not-for-profits) |
| Typical work | Fund journal entries, workbook projects, statements and reports to stakeholders |
Check SNHU's catalog for the current description and prerequisites for your catalog year.
What ACC-322 Covers
| Topic | What it involves |
|---|---|
| Fund structure | Governmental, proprietary and fiduciary fund categories |
| Basis of accounting | Modified accrual for governmental funds; accrual for proprietary funds |
| Budgetary accounting | Recording budgets, encumbrances and appropriations |
| Government-wide statements | Statement of net position and statement of activities |
| Capital assets and long-term debt | How they are reported at fund and government-wide level |
| Not-for-profit reporting | Net assets with and without donor restrictions; contributions |
Key Concepts Explained
Modified Accrual Basis
Governmental funds focus on current financial resources. Revenues are recognized when measurable and available to pay current-period liabilities; most expenditures are recognized when the liability is incurred.
Example: A city's general fund buys a $40,000 vehicle. Under modified accrual, the fund records a $40,000 expenditure, not an asset. At the government-wide level (full accrual), the vehicle is reported as a capital asset and depreciated.
Encumbrances
When a government places an order, it may record an encumbrance to set aside part of its appropriation, so managers can see how much budget remains.
Example: A department orders supplies estimated at $5,000 and records an encumbrance of $5,000. When the invoice arrives for $4,900, it reverses the encumbrance and records an expenditure of $4,900, freeing $100 of the appropriation.
Donor Restrictions
Private not-for-profits report net assets with donor restrictions and without donor restrictions. When a restriction is met, the amount is reclassified ("released") to net assets without donor restrictions.
Typical Assignments and How to Approach Them
| Assignment type | What it tests | How to approach it |
|---|---|---|
| Fund journal entries | Choosing the fund and basis | Name the fund first, then the basis, then the entry |
| Workbook projects | Building fund and entity statements | Keep a separate tab per fund and reconcile to the totals |
| Reports to stakeholders | Explaining public sector results | Write for taxpayers or managers, not accountants |
| Concept questions | Understanding GASB and FASB differences | Compare the two frameworks in a short table |
Linking Fund Statements to Government-Wide Statements
Governments present two views: fund statements on the modified accrual basis for governmental funds, and government-wide statements on the full accrual basis. Because the bases differ, a reconciliation explains how fund balance becomes net position.
Typical reconciling items include capital assets (expensed in funds, capitalized government-wide), long-term debt (not a fund liability, but a government-wide one) and revenues that were not available in the current period.
Assignments that ask you to prepare or explain this reconciliation are testing whether you understand why the two bases exist. A short list of reconciling items with amounts and one-line reasons is often the clearest way to present it.
When the scenario asks for a report to taxpayers or council members, translate the reconciliation into plain terms: what the government owns and owes overall, and whether this year's resources covered this year's services. Readers outside accounting care about those answers far more than the mechanics of the two bases.
Where Students Get Stuck
- Thinking like a business. Governmental funds record expenditures, not expenses, for capital purchases.
- Choosing the fund. Read the scenario for the purpose of the resources.
- Budgetary entries. Remember to close or reverse encumbrances correctly.
- Mixing frameworks. GASB applies to governments; FASB to private not-for-profits.
Study Tips for ACC-322
- Make a one-page map of fund types with examples of each.
- Practice the same transaction at fund and government-wide level.
- Read the annual report of a local government to see real fund statements.
- Keep a glossary: appropriation, encumbrance, fund balance, net position.
How We Help with ACC-322
Send the instructions, case data, templates and rubric. A tutor experienced in public sector accounting prepares a worked model, explains fund choices and bases, or reviews your workbook. For wider support, see our accounting assignment help guide.
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Frequently Asked Questions
The Governmental Accounting Standards Board (GASB) sets standards for US state and local governments. Private not-for-profits follow FASB standards.
A self-balancing set of accounts used to track resources set aside for a particular purpose.
Governmental funds focus on whether current resources cover current spending, which suits budget accountability.
A commitment of budget for an order not yet fulfilled, recorded so managers know how much appropriation remains.
ACC-322 covers both governments and not-for-profits; ACC-325, by its title, focuses on not-for-profit organizations.
Yes. We prepare models or review your workbook and explain each entry.