The statement of activities for the ECE Children's Learning Center for fiscal year 2017, prepared by a newly hired budget employee with no NFP experience, is presented on the following page.

Required
a. Because you are taking a not-for-profit course, a friend who sits on the board of the ECE has asked you to review its statement of activities. Your friend has a concern about the statement since it doesn't look quite the same as it did last year. Given that the ECE opted to hire someone without NFP experience, your friend has concerns that the statement may not be properly presented. Make a list of modifications or corrections that you believe should be made to the statement to ensure it is presented in conformance with GAAP.
b. Your friend indicates that the center is facing an upcoming audit. What concern would you have for the ECE regarding its audit, based on the financial statement it has prepared?

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ECE CHILDREN'S' LEARNING CENTER Statement of Activities For the Period Ended June 30, 2017 Temporarily Restricted Permanently Restricted Unrestricted Total Revenues: Admission fees Special events revenue Program fees Contributions Grants Investment income 732,000 125,000 554,450 792,320 50,000 955 2,254,725 732,000 125,000 704,450 1,632,090 50,000 214,163 3,457,703 150,000 300,000 539,770 112 539,882 213,096 Total revenues 663,096 Expenses Center for creativity Outdoor experiences Management & fund- 947,173 522,297 1,530,007 834,151 582,834 311,854 603,337 10,735 2,083,54.2 171,183 798,011 $ 969,194 603,337 10,735 2,978,230 479,473 3,332,023 $3,811,496 raising Depreciation Total expenses Decrease in net assets Beginning net assets Ending net assets 582,834 (42,952) 33,245 $ (9,707) 311,854 351,242 2,500,767 $2,852,009