Assurance

Understanding Your Retirement Plan Document and Fiduciary Duties

By |2020-01-16T15:20:09-06:00January 15th, 2020|Assurance, Compliance, Internal Control, Nonprofit, Retirement|

  As a retirement plan administrator or plan trustee, you are responsible for the management and successful operation of the retirement plan, in accordance with the plan document and the Employee Retirement Income Security Act (ERISA), on behalf of plan participants and beneficiaries. Therefore, in serving in these fiduciary roles, it is greatly important to [...]

How to Prepare for a Single Audit

By |2020-01-16T15:19:45-06:00January 15th, 2020|Assurance, Compliance, Internal Control, Nonprofit, Preparation|

  Does your organization receive federal funding? If the answer is yes, then you’ve probably heard of a “single audit.” A single audit is required when a non-federal entity expends $750,000 or more in federal awards during the fiscal year. If you are a recipient of federal funds and have exceeded this threshold, then you [...]

Developing Relevant Performance Metrics in Nonprofit Organizations

By |2020-01-28T12:17:32-06:00November 27th, 2019|Assurance, Board, Budget, Nonprofit, Records|

Nearly every nonprofit organization in existence can confidently state that their board of directors reviews and approves financial reports (generally the statement of financial position, statement of activities, and often a cash flow statement) at each meeting. However, many boards are missing out on a valuable opportunity in gathering important information to assist with [...]

Setting the Record Straight – Overhead Costs Are Essential for Sustainability and Growth

By |2019-12-09T13:08:31-06:00November 21st, 2019|Assurance, Budget, FASB, Nonprofit|

Being honest and transparent about overhead costs (i.e., Management & General, Fundraising, etc.) is vital in educating stakeholders on the cost of delivering services. Many people think of overhead as a negative part of doing business, thinking it is something to be minimized in order to maximize something (such as profits or other measurables). [...]

3 Alternative Engagements to an Audit

By |2019-12-09T13:12:09-06:00August 15th, 2019|Assurance, Board, Budget, Compliance, Nonprofit|

Last quarter, I discussed what an audit accomplishes and what it does not accomplish in my article titled “Do You Really Need An Audit?” In that article, I introduced the idea that an audit may not be right for every organization, especially if resources are tight, as audits can be costly. Below, I discuss [...]

Data Security: Is Your Organization Doing Enough?

By |2019-12-09T13:12:32-06:00August 14th, 2019|Assurance, Board, Fraud, Internal Control, IT, Nonprofit, Preparation, Tips|

The term data security broadly refers to defensive measures put into effect to prevent unauthorized admission into computers, databases, websites, and any other places data may be stored. Data security is typically applied to systems which protect personally identifiable information (PII). Examples of more sensitive PII include social security numbers, driver’s license numbers, full [...]

Have You Thought About a Liquidity Policy?

By |2019-12-09T13:20:10-06:00August 14th, 2019|Assurance, Board, Change, Compliance, Nonprofit|

New Accounting Standard Update (ASU) 2016-14 The Financial Accounting Standards Board (FASB) issues these new standards. This new standard affects nonprofit organizations in all industries (i.e. healthcare, affordable housing, social services, foundations, and education) and is effective for fiscal years beginning after December 15, 2017 (Calendar Year 2018 or Fiscal Year 2019). ASU 2016-14 [...]

Can I Use My Endowment As Collateral?

By |2019-12-09T13:23:50-06:00March 13th, 2019|Assurance, Board, Budget, Cash Flow, Gifts, Nonprofit|

Organizations looking to expand their programs sometimes need to obtain bank financing for large projects such as the acquisition of a building. Depending upon the financing received, collateral is often a necessary piece of closing the deal. For organizations with large endowments, the question may come up as to whether the organization may use [...]

Do You Really Need An Audit?

By |2019-12-09T13:24:12-06:00February 6th, 2019|Assurance, Board, Compliance, Internal Control, Nonprofit|

For those of you that go through an audit each year, you know how costly and time consuming they can be. You may have wondered, “Do I really need an audit? Is there something else that I can do to satisfy my financial reporting requirements?” To accurately answer those questions, you first need to [...]

Decoding the Nonprofit Financial Lingo: Statement of Financial Position

By |2019-12-09T13:23:13-06:00January 23rd, 2019|Accounting, Advisory, Assurance, Cash Flow, Nonprofit, Tips|

In each of our chosen fields and careers, there is often some industry-specific language that gets passed around. Nonprofits have their own sets of terminology that can be different and confusing. Whether you’re an accountant, board member, volunteer, or curious potential donor, getting to know the lingo used in non-profit accounting can be important [...]