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After studying Chapter 13, you should be able to:

• -Describe the unique characteristics of audits of governmental and not-for-profit entities.
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• -Describe the major requirements of the Single Audit Act.
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• -Describe the process of applying for tax-exempt status and the reporting requirements of the Form 990.
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• -Identify when a not-for-profit organization is subject to the unrelated business income tax and describe how the tax is determined.
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• -Identify financial ratios commonly used to evaluate governmental and not-for-profit entities and describe how they are calculated and interpreted.
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• -Identify the elements of service efforts and accomplishments reporting and explain why governments and not-for-profits report nonfinancial performance measures.