1. Introduction
2. Responsibilities of the Board of Directors
   1. Tax-Exempt Status
   2. Donor Restrictions
   3. The Budget
   4. The Accounting Function
   5. Internal Accounting Controls
   6. Interim Financial Reports
   7. The Need for an Audit
   8. Selecting an Independent Accounting Firm
   9. Audit Findings
   10. Cash Management
3. Responsibilities of Management
1. System of Internal Control
2. The Annual Operating Budget
3. Chart of Accounts
4. Allocating Costs
5. The Accounting System
6. Documentation Procedures
7. Accounting Records and Financial Statements
8. Managing the Accounting Function and Report Deadlines
9. Staffing of the Accounting Function
10. Insurance
4. Accounting Functions
   1. Cash
   2. Investments
   3. Receivables
   4. Inventory
   5. Fixed Assets
   6. Other Assets
   7. Accounts Payable
   8. Payroll Liabilities
   9. Deferred Support
   10. Refundable Advances
   11. Debt
   12. Other Liabilities
   13. Net Assets and Fund Balance
   14. Financial, Tax, & Grant Reporting
5. References
   1. Tax Forms and Publications
   2. Board Accounting Responsibilities
   3. Accounting and Grant Reporting for Nonprofits
   4. Ordering Information
6. Exhibits
   1. Budget
      1. Annual Budget
      2. Operating Statement - Budget and Actual
   2. Financial Statements
      1. Statement of Financial Position (SFAS No. 117 format)
      2. Statement of Activities (SFAS No. 117 format)
      3. Statement of Cash Flows (SFAS No. 117 format)
      4. Schedule of Functional Expenses
      5. Notes to Financial Statements

This manual was prepared by Colbert Chapman, Karin Klusmann, and Patrick Lumpkins of the Housing Assistance Council (HAC). The work that provided the basis for this publication was supported by funding under Cooperative Agreements with the U.S. Department of Housing and Urban Development (HUD). Ndeye Jackson served as HUD's Government Technical Representative. The substance and funding of that work are dedicated to the public. HAC is solely responsible for the accuracy of the statements and interpretations contained in this publication and such interpretations do not necessarily reflect the views of the United States Government.

HAC, founded in 1971, is a nonprofit corporation which supports the development of rural low-income housing nationwide. HAC provides technical housing services, seed money loans from a revolving fund, housing program and policy assistance, research and demonstration projects, and training and information services.