Many nonprofit organizations that receive grants from the federal government require a single audit for assurance that the organization is in compliance with the Uniform Guidance requirements. Quite often these audits result in one or more findings that the organization must address. Of the 12 compliance requirements, there are four under which most audit findings fall. These frequent trouble spots are allowable costs; procurement, suspension and debarment; reporting, and sub-recipient monitoring. This article is the first in a 4-part series that will focus on these common findings; here we will address allowable costs.
For business owners, occupational fraud can be one of the most dangerous threats to a company’s success. According to the Association of Certified Fraud Examiners, the median loss in a business fraud case is about $130,000, and this number is even higher for small businesses. However, don’t let the statistics scare you. Using the following preventive and detective internal controls, any business owner can take action to keep fraud at bay.
With the Accounting Standards Update issued by the Financial Accounting Standards Board (FASB) in 2016 came a host of new financial reporting requirements and changes that impact nonprofit organizations. ASU 2016-14, as the update is officially titled, makes a wide variety of changes to financial statements and requires additional disclosures regarding functional expense reporting; net assets and endowments; and liquidity and availability of assets.
Nonprofit leaders must prepare for change as they approach their annual accounting and fulfill their disclosure responsibilities. In August of 2016 the Financial Standards Accounting Board (FASB) released Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit (NFP) Entities.
In August of 2016, the Financial Accounting Standards Board (FASB) released a broad update of accounting standards that will change the way nonprofit organizations report and present their financial data. Formally titled Accounting Standards Update 2016-14, Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14), the update addresses multiple aspects of financial reporting. Not-for-profits (NFPs) will make the most significant reporting changes in the areas of functional expenses; treatment of net assets and endowments; liquidity and availability of resources; and intermediate measures of operations.
Nonprofit organizations receive funding from various sources, but it can be difficult to determine how to account for these funds. When should revenue be recognized? This depends on whether funds come from contributions or exchange transactions.
There are many reasons that can prompt an organization to transition their accounting software and/or their AMS. Limitations of the current system, the need for other tools or manual activities in order to process financial data and activity, growing business operations, or the use of advanced features are just a few reasons of why an organization would consider a transition. Whatever the reason may be, be aware that any change to a new accounting software system is a huge undertaking and requires a tremendous amount of time and money. Below are some helpful steps to assist with an efficient and successful transition. Read More »