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Question for non-profit-income vs reimbursed expenses

  • 1.  Question for non-profit-income vs reimbursed expenses

    Posted 11-09-2018 07:13
    I have a non-profit client who is a state provider for disability services. They basically perform financial management duties along with employer duties of support workers who are recruited and hired by the disabled person.

    The non-profit pays the employees then get reimbursed for the costs via Medicaid. It’s dollar for dollar reimbursement. There is no markup or profit.

    The state pays a case management monthly fee to the non-profit for its fiscal management services. This is how the nonprofit makes its income.

    My question is: would the Medicaid reimbursement of support worker wages be recorded as income or reimbursed expenses? I have been looking at revenue recognition rules and haven’t found a definitive answer yet.


    Eileen Dunn
    Eileen Dunn, CPA PC
    150 Corporate Plaza
    Islandia, NY 11749