EZ-AUDIT INSTRUCTIONS FOR INSTITUTIONS SUBJECT TO ASU 2016-14

In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. ASU 2016-14 reduced the number of classes of net assets from three to two; Net Assets Without Donor Restrictions, and Net Assets with Donor Restrictions. ASU 2016-14 also requires the presentation of expenses in both natural and functional classifications.
ASU 2016-14 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Department’s eZ-Audit system has not been updated to reflect these changes yet. Recently Federal Student Aid offered interim guidance for early implementers to ensure data is properly loaded into the financial statement templates.