The New England Not-For-Profit Accounting Advisor

One needs only to look at the changes in the AICPA’s not-for-profit audit committee toolkit to understand the evolving responsibilities of the audit committee. The AICPA had previously recommended that not-for-profit audit committees monitor the financial reporting process and external auditors, perform internal audit functions and meet legal and/or regulatory requirements. The AICPA toolkit for 2015, the third edition, recommends roles and responsibilities beyond just hiring and communicating with the outside auditor. It suggests not-for-profit audit committees assess their internal audit function’s qualifications (if there is one), independence and performance and assist with their organization’s risk management and governance functions. The toolkit comes with Microsoft Word files of all the tools so you can modify and customize to fit your committee’s needs.

Data breaches affect all organizations, from small not-for-profit organizations to large commercial retailers. Hackers do not discriminate. Should your organization fall victim to a cyber attack, the results could be devastating. The average cost of a data breach in 2014 was $3.5 million. Furthermore, threats to cybersecurity appear to be increasing both in quantity and in severity. Data breaches doubled from 2012 to 2013 and from 2013 to 2014, the average cost of data breaches went up by more than 15 percent.

The digital age created a new standard for your operations. Not-for-profit organizations no longer need brick-and-mortar locations to deliver services, and employees do not need to be physically present in your building in order to work for your organization. Online gift shops and bookstores may also necessitate tax filings in multiple states.