This year, the Club Management Association of America (CMAA) in conjunction with HFTP hired a project manager and gathered a committee to update the seventh edition of the Uniform System of Financial Reporting for Clubs (USFRC). After a productive summer, gathering feedback from HFTP members at the Club Forum 2018 and additional committee input, the two organizations decided to delay the eighth edition due to pending changes in three key accounting standards and their potential impact on private clubs.
The three accounting standards involve revenue recognition which may impact how a club reports initiation fees, financial statement presentation of not-for-profit entities, and the lease standard. These are major changes which will impact the presentation of a club’s audited financial statements. The two organizations have decided to be cautious, as public accounting firms warn that the changes are expected to potentially create confusion as they relate to private clubs. The project has therefore been delayed until after the changes have taken effect (January 1, 2019 and January 1, 2020) and subsequent discussions and fallout from the changes have been reconciled.
The seventh edition of the USFRC was published in 2012, with minor updates in 2014. In the absence of the planned 2019 update, the two organizations pledge to provide continuing education to their members on the changing accounting standards. The two organizations plan to reconvene regarding the eighth edition in the fall of 2019.