Statement of Functional Expenses: Not-for-Profit Financial Reporting
The Statement of Functional Expenses is a critical element of not-for-profit financial reporting. This course explains how to prepare and present the SFE in accordance with GAAP, including expense classification, allocation methods, and reporting considerations.
CPE Credit
1.5 Hours
DELIVERY METHOD
Self-Study (On Demand)
LEVEL
Intermediate, Yellow Book
PREREQUISITES
None
PRICING
$119.50 per year
Course Description
The Statement of Functional Expenses (SFE) requires a nuanced understanding of how not-for-profit organizations classify and report expenses across functional categories. This course explores how to prepare the SFE in accordance with GAAP, using practical examples and case-based scenarios to reinforce key concepts.
Participants will learn how to evaluate presentation options based on the complexity of the reporting entity and determine how specific transactions impact the SFE. The course emphasizes accurate expense allocation, appropriate financial statement presentation, and compliance with applicable accounting standards.
What You’ll Learn
By the end of this course, you will be able to:
- Determine how to prepare a Statement of Functional Expenses (SFE) in accordance with GAAP
- Identify appropriate presentation options based on the complexity of the entity
- Analyze how specific transactions affect the SFE and expense classification
- Understand key considerations in expense allocation and reporting
- Apply best practices for accurate and compliant SFE preparation
Who This Course Is For
This course is designed for:
- CPAs and accounting professionals working with not-for-profit organizations
- Financial reporting professionals preparing nonprofit financial statements
- Auditors and consultants involved in NFP financial reporting and compliance
- Professionals seeking to strengthen knowledge of functional expense reporting
Key Topics Covered
- Statement of Functional Expenses (SFE) overview
- GAAP requirements for nonprofit expense reporting
- Functional expense classification (program, management, fundraising)
- Presentation options for the SFE
- Impact of transactions on functional expense reporting
- Expense allocation considerations and methodologies
Why This Course Matters
The Statement of Functional Expenses provides transparency into how not-for-profit organizations use their resources, making it essential for stakeholders, including donors, regulators, and financial statement users. Proper preparation of the SFE ensures compliance with GAAP and enhances the credibility of financial reporting.
This course helps professionals develop the skills needed to accurately prepare and analyze the SFE, improving both reporting quality and decision-making. For additional guidance, refer to the AICPA Not-for-Profit Financial Reporting resources.
Explore additional Accounting CPE courses to build your expertise in nonprofit financial reporting.
Pricing & Access
$119.50 per year — Unlimited CPE Access
When you enroll, you receive full access to all courses in our catalog for one full year, including this course and every other available offering.
Unlike many CPE providers, we do not charge by the credit hour and we do not impose course expiration dates. Once you’re enrolled:
- All courses are included — no per-course or per-credit fees
- Your access lasts for a full year from your enrollment date
- Your completed course certificates remain available in your portal
- You can complete courses at your own pace, on your own schedule
This single annual enrollment gives you the flexibility to earn CPE hours when you need them — without worrying about expiring credits or additional costs.
Frequently Asked Questions
Is this course NASBA-compliant?
Yes. This course meets NASBA CPE requirements.
How is the course delivered?
On-demand, self-study format with quizzes for knowledge checks.
Can I complete this course at my own pace?
Yes. You may start, stop, and resume the course as needed.
