Chapter 14, Problem 4ATC

ATC 7-4 Writing Assignment Continuous budgeting

The Curious Accountant in this chapter discussed some of the budgeting issues facing the United States Olympic Committee (USOC). First, to get a basic understanding of the sources of revenues and expenses of the USOC, review its Form 990, which shows its revenues and expenditures as reported to the IRS, or its “Audited Financial Statements.” These may be accessed with the following link: www.teamusa.org/footer/finance/. You need to review only the information on the first page of the Form 990, but reviewing pages 9 and 10 of the form will provide additional insight as to the USOC’s revenues and expenses. If you use the audited financial statements, review the “Consolidated Statement of Activities.”

Required

Assume the OSOC had not previously used continuous budgeting but was considering implementing a continuous budgeting system. Also assume you had been asked to identify some of the challenges the USOC would face in implementing this system. Write a memorandum explaining the challenges you identify.