The Newly Expanded USFRC


USFRC - 475The Seventh Edition of the Uniform System of Financial Reporting for Clubs has been recently released by the Club Managers Association of America (CMAA) and Hospitality Financial & Technology Professors (HFTP).

This new edition includes sections covering basic financial statements for both country and city clubs and for the first time statements for Common Interest Realty Associations (CIRA) clubs. The Statements of Activities – Departmental Forms, 26 schedules identified by letters and nine updated and new appendices are included. The updated appendices cover CIRA clubs and accounting best practices.

Members of the revision committee include representatives from both CMAA and HFTP. Ian D.N. Fetigan, CCM, CAM, chaired the Club Managers Subcommittee, Wendy K. Zurstadt, CPA, CHAE, CAM, chaired the Controllers Subcommittee while Leonard J. Bartello, CPA, CHAE, CHTP, CAM, chaired the Consultants Subcommittee; all served as chairs of the same subcommittees during the prior revision. Additionally, 23 professionals served as members of these three subcommittees. 

Residential Golf

CIRA Clubs

Since many more CIRA clubs have been established since the sixth edition, financial statements including the Balance Sheet, the Statements of Revenues and Expenses, The Statements of Cash Flows, and the Departmental Form of the Statements of Revenues and Expenses are provided for CIRA clubs. In this edition, there is an appendix designated to explain the types of clubs represented. A schedule for reporting Common Area Maintenance, unique to CIRA clubs, is also included.

Departmental Schedules

Several department schedules have been added while titles of some have been revised to reflect current usage. A total of 26 schedules are included in this new publication and the line items of each schedule are clearly defined.

New schedules include marina, special-purpose funds, information technology, marketing and membership, security and common area maintenance. Departmental schedule titles that have been changed to reflect more current usage include: social events replacing entertainment, fitness/spa replacing health and fitness and housekeeping replacing house laundry. All schedules include additional line items that clubs will find useful for reporting their operating results. As in the past, no club should blindly follow the prescribed schedules but modify them to meet their informational needs.


The appendices of the Uniform System provide additional information and guidance to club executives. The Fifth edition of USFRC had five appendices covering 43 pages. The expense dictionary was added to the Sixth edition and other appendices were expanded so that 100 pages were devoted to appendices. The expansion continues with the Seventh edition of the USFRC as two additional appendices have been included. An appendix explaining CIRAs is new to this edition as well as accounting best practices. Other appendices have been updated. Additional ratios are provided in the ratio analysis and statistics appendix. The club taxation has been updated by the foremost club industry tax experts. The expense dictionary includes many additional terms. The revised reporting system is extensively illustrated providing users with greater guidance.


Accounting Best Practices

A dozen major topics are covered in this appendix of the seventh edition. The best practices range from safeguarding cash to labor considerations. Numerous suggestions are provided for the food and beverage department, purchasing and receiving and mitigating fraud.

A sample suggestion provided under the food and beverage department category follows:

Rebate programs are typically available to the food and beverage industry and should be sought out to save the hundreds of dollars a month available. These should be watched closely to ensure the rebate is issued to the Club and not the purchaser. 


Ray SchmidgallAs you can see, the Seventh Edition of Uniform System of Financial Reporting for Clubs (USFRC) provides club managers and club accounting professionals with the most up-to-date guidance for preparing and presenting financial statements and assessing the club’s financial position.

Raymond S. Schmidgall, Ph.D., CPA, is the Hilton Hotels Professor of Hospitality Financial Management at Michigan State University’s School of Hospitality Business. He is the school's accounting and financial management expert and serves on industry committees of the Hospitality Financial and Technology Professionals and American Hotel & Lodging Association. He is the committee coordinator for Uniform System of Financial Reporting for Clubs, Seventh edition that will be released later this fall. He conducts managerial accounting seminars for CMAA, HFTP and GCSAA. Professor Schmidgall is the co-author of Accounting for Club Operations and has written more than 160 articles on club and hospitality industry accounting, finance and management topics. Prior to teaching, Ray Schmidgall was the financial controller of the Educational Institute, American Hotel & Lodging Association and worked as an auditor with Ernst & Ernst.