Program Expenses

[Zulema Estabrooks]

Functionalexpenses are reported by their functional classification and recorded in a Statement of Functional Expenses. This method of expense reporting is most commonly used by nonprofit organizations.

Functional expenses are reported by their functional classification. All nonprofit organizations in the US are now required to report their expenses based on their functional classification and by the natural classification, as per Financial Accounting Standards Board guidelines.

What are functional expenses and what are natural expenses? You can think of it this way: functional expenses describe the purpose of an expense by its category, while natural classifications explain what the money was spent on.

Program expenses are any costs related to running the various programs and services offered by a nonprofit organization, as per its mission. For established nonprofits, program expenses often make up the majority of their overall costs.

The Statement Of Functional Expenses explains the costs incurred for each functional area of the organization. The functional classifications include: programs, management and general and fundraising.

The Statement Of Activities is similar to the Income Statement businesses issue. The Statement of Activities looks at the entire organization and reports on the revenues and expenses of the nonprofit during a specific reporting period.

A qualified tuition program (QTP), also referred to as a section 529 plan, is a program established and maintained by a state, or an agency or instrumentality of a state, that allows a contributor either to prepay a beneficiary's qualified higher education expenses at an eligible educational institution or to contribute to an account for paying those expenses. Eligible educational institutions can also establish and maintain QTPs but only to allow prepaying a beneficiary's qualified higher education expenses. Qualified higher education expenses generally include expenses required for the enrollment or attendance of the designated beneficiary at any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. In addition, for purposes of QTPs, qualified higher education expenses include tuition expenses in connection with a designated beneficiary's enrollment or attendance at an elementary or secondary public, private, or religious school, i.e., kindergarten through grade 12, up to a total amount of $10,000 per year from all of the designated beneficiary's QTPs. They also include expenses for fees, books, supplies, and equipment required for the participation in an apprenticeship program registered and certified with the Secretary of Labor and qualified education loan repayments in limited amounts.

QTP contributions on behalf of any beneficiary can't be more than the amount necessary to provide for the qualified higher education expenses of the beneficiary. Contact the program's trustee or administrator to determine the program's contribution limit. Contributions made to a QTP aren't deductible.

You should receive a Form 1099-Q, Payments from Qualified Education Programs (Under Sections 529 and 530) from each of the programs from which you received a QTP distribution. The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis or return of investment (box 3). Form 1099-Q should be made available to you by January 31, 2024.

For example, if the organization is a homeless shelter, program expenses might include costs for providing food, shelter, and counseling services. If the organization is a research institution, program expenses might include research staff salaries, lab supplies, and costs associated with conducting studies and publishing results.

Chamberlain assists students in developing plans for financing their education through a combination of financial-assistance programs (if eligible), family contributions, employer tuition reimbursement (when available) and Chamberlain payment plans.

AWI has been evaluated by Charity Navigator and has received the highest ratings. This independent evaluation is intended to assure the public that AWI is properly governed, that our programs are consistent with our statement of purpose, that our funding is sound, and the bulk of our annual expenses is devoted to our programs to protect animals. For further information on AWI, you may contact the aforenamed organization:

Per U.S. immigration regulations, all international students intending to study on F-1 or J-1 visa status are required to demonstrate proof of their ability to pay for their education and living expenses in the United States.

Before an I-20 or DS-2019 can be issued, USC requires a financial statement demonstrating proof of funding. If you are applying to a graduate program, it is not necessary to submit proof of financial support or passport copies to be considered for admission to USC. Documents can be submitted after an admission decision has been reached and you have committed to attend USC.

To determine your I-20/DS-2019 cost requirements, please find your program, by degree level, in the drop-down below. These amounts cover estimated, average program expenses and living expenses for one year, as determined by the USC Financial Aid Office.

Please Note: These numbers are for immigration purposes only. They should not be considered a bill of expense for your program. Your actual expenses may vary based on course load, living situation, special fees, lifestyle, etc.

PhD/Doctoral Applicants: Since USC provides funding to the majority of PhD candidates, PhD applicants do not need to submit a personal financial statement, unless the university has confirmed that no funding will be provided.

J-1 Students Only: Before the Office of Admission can issue a DS-2019, you must provide proof that the majority of your funding is sponsored by a government, university, or other major international organization. Personal funds may not be used unless you have dependent expenses not covered by your scholarship.

Graduate students: We will require financial documentation only if you are admitted to and choose to attend USC. Financial documents for graduate students are not required or accepted when you apply for admission. Please do not send any financial documents while your application is under consideration, as they will not be reviewed.

The Annual Security and Fire Safety Report includes Clery Act crime and fire statistics for the preceding three years for locations owned and or controlled by USC, the required policy disclosure statements and other important safety related information. A paper copy of the ASR is available on request made to Department of Public Safety Records by calling (213) 740-6000, by email to DPSRe...@dps.usc.edu or in person at DPS at 3667 South McClintock Avenue, Los Angeles, California 90089.

With the passage of the Fiscal Responsibility Act of 2023 and related rescission of program funds, no further payments will be made to providers under the Provider Relief Fund or the American Rescue Plan Rural Distribution, including no reconsideration payments. Likewise, no additional claims payments will be made under the Uninsured Program or Coverage Assistance Fund. Per the Terms and Conditions of each Program, all reporting and auditing requirements will continue without disruption.

An allowable expense under the Provider Relief Fund (PRF) must be used to prevent, prepare for, and respond to coronavirus. PRF recipients must follow their basis of accounting (e.g., cash, accrual, or modified accrual) to determine expenses. The cited expenses, as well as losses, must not have been reimbursed from other sources and other sources must not be obligated to reimburse them.

Recipients may use PRF payments for allowable expenses incurred prior to receipt of those payments (i.e., pre-award costs) so long as they are to prevent, prepare for, and respond to coronavirus. All recipients are subject to audit.

Recipients must support all expenses with adequate documentation and maintain documents to substantiate that these funds were used for health care-related expenses or lost revenues attributable to coronavirus. The burden of proof is on the recipient to maintain documentation that shows how expenses prevent, prepare for, and respond to coronavirus.

The Post-Payment Notice of Reporting Requirements (PDF - 137 KB) states that PRF payments can be used by any provider of health care, services, and support in a medical setting, at home, or in the community towards health care-related expenses attributable to coronavirus that another source has not reimbursed and is not obligated to reimburse, which may include General and Administrative (G&A) or health care-related operating expenses. Reference the Reporting and Auditing FAQ for additional details and guidance.

This list is intended to clarify the intent and provide examples of allowable expenses for the use of PRF General and Targeted Distribution payments. This is not an exhaustive list of allowable expenses, but will help to inform and support providers as they categorize expenses for reporting on use of funds. Review the Nursing Home Infection Control (NHIC) webpage for examples on using NHIC payments.

Skilled Nursing Facility and Nursing Home Infection Control Distribution, including Quality Incentive Payments (QIP) program, may be used for infection control expenses limited to those outlined in the Terms and Conditions as follows:

Healthcare providers who received PRF payments can be reimbursed for their time and resources related to COVID-19 prevention outreach, education and counseling. Communicating with patients about vaccines, social distancing, hand washing, and avoiding crowds are key in slowing the spread. These encounters may be in-person, virtual, or electronic.

If not directly associated with a scheduled patient encounter, provider services such as patient education, community outreach, expanding partnerships to support various priorities (e.g., identifying unvaccinated patients, expanding behavioral health services, etc.) may go unreimbursed by the PRF.

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