The past two years have seen unprecedented federal funding flowing to not-for-profit entities (NFPs) for COVID-19 relief. The variety of forms this funding comes in has raised questions and challenges for NFPs and their auditors regarding accounting and financial reporting. This article discusses common federal funding programs used by NFPs and resources currently available to help with the associated accounting issues.
Paycheck Protection Program (PPP)
PPP funding is structured as a loan from a financial institution accompanied by a