The American Institute of Certified Public Accountants (AICPA) held its annual Not-For-Profit Industry Conference on June 17-29, 2016. With more than 2,000 participants from around the country, this conference is widely viewed as the most important educational conference of the year for professionals who help address the accounting, audit, tax and operational issues facing not-for-profit organizations.Read More
The New England Not-For-Profit Accounting Advisor
The Advisory Committee on Tax-Exempt and Government Entities (ACT) recently held its 15th annual public meeting with the Commissioner and other top IRS officials. The ACT comprises national experts representing each of the five major jurisdictions of the TE/GE division: employee plans, exempt organizations, federal, state and local governments, Indian tribal governments and tax-exempt bonds.
Growing programs, expanding service offerings or making substantial repairs to existing facilities make construction projects an inevitable part of the not-for-profit operating environment. Although a necessary part of operating, not-for-profits should approach each construction arrangement cautiously. Undertaking large projects comes with a fair amount of risk. Failing to adequately understand where your organization may be at risk can lead to overspending and, in certain cases, legal disputes. For not-for-profit organizations, maintaining project costs is essential. Knowing the five major risk areas in construction contracts can help you manage your ongoing or upcoming projects to ensure you are not overpaying.Read More
Boards of directors, revenue generation, and community interfacing make not-for-profit management unique. Not-for-profit Chief Executive Officers (CEOs) and Executive Directors must balance mission objectives with an ever-more challenging economic reality while serving as the face of the organization to potential donors and the population the organization serves.
The concept of a fiduciary often arises in discussions about financial advisors, attorneys, estate executors and scenarios that involve professionals handling financial assets or affairs on behalf of an individual or organization. These professionals are trusted to act in the best interest of the individual or organization. In many situations, such as with fiduciaries of retirement plans, this also means that professional should be taking steps to ensure that applicable regulations are being followed or the fiduciary could be held liable for compliance issues.
By Steve Dunavant, Managing Director at CBIZ, Inc. and Jim Lang, Managing Partner at Baynard, McLeod and Lang, P.A.
Not-for-profit organizations that are looking to expand or build programs to support underserved communities may be missing a significant benefit -the New Markets Tax Credit (NMTC).
Designed to stimulate growth and economic development in low-income communities, the NMTC Program provides federal tax credits to encourage capital investment for projects and businesses into these underserved areas. For not-for-profit organizations working in these communities and wishing to expand their mission, the NMTC Program may be useful in leveraging and subsidizing fundraising efforts. The NMTC program often results in 20 to 25 percent net benefit that could be used for an organization’s capital improvements, operating capital or other costs.Read More
The Department of Labor (DOL) recently finalized rules that will have a significant effect on which employees are due overtime for working more than 40 hours in a workweek. Most not-for-profit organizations must comply with the changes by December 1, 2016.
Adapted with permission of The CPA Journal, Copyright © 2016, April, 2016.
Over the last several years, audit committees have fine-tuned their oversight relative to internal controls and financial reporting, but as this process has matured, many committees are asking broader questions about risk and risk oversight. In fact, audit committees are increasingly charged with understanding overall risks, assessing which risks are the most important, and making sure that the existing management and governance structures are designed to mitigate, manage, and oversee these risks. This evolution corresponds to changes in the not-for-profit risk environment as a whole.Read More
Regulatory reform rarely happens in sweeping changes. Most of the time regulatory updates are incremental, which makes monitoring the little notices from Congress or the IRS important for organizations of all sizes. Taken together, the little things can have a significant impact on your organization’s operations.
The Uniform Grant Guidance (2 CFR 200), released in December 2013, replaced several Office of Management and Budget (OMB) administrative, cost and audit circulars, and as a result, it changed the way many not-for-profit organizations and universities administered their grants.
New awards and funding increments to existing awards to which the federal agency modified the terms and conditions received after December 26, 2014, must follow the administrative requirements and cost principles under Uniform Grant Guidance (UGG). The new Single Audit requirements are effective for fiscal years beginning after December 26, 2014. For most not-for-profit organizations, that means the first time they will be subject to the new Single Audit requirements will be for their upcoming June 30, 2016 year-end.Read More