Not-for-profit organizations that receive federal funds are subject to the requirements of the Uniform Grant Guidance (UGG), and the Subpart F Single Audit. For several reasons, from the introduction of new federal COVID-19 relief programs to the disruption that accompanied mass shelter-in-place orders, the COVID-19 pandemic is changing what the single audit may look like in 2020 and for your organization’s fiscal year. The following provides a brief recap of what to expect for your single audit in 2020.
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Topics:
reporting requirements,
not-for-profit,
compliance,
OMB,
NFP,
single audit,
Uniform Grant Guidance,
COVID-19,
CARES Act,
Office of Management and Budget,
UGG,
GAQC
Federal aid swiftly followed the disruption caused by the COVID-19 pandemic, with new programs coming from the Coronavirus Aid, Relief and Economic Security (CARES) Act and additional funding to existing programs. For-profit and not-for-profit organizations of all types received support in the form of grants and may now find themselves with new reporting requirements. For-profit organizations that received coronavirus relief funds may even be facing their first Single Audit under the Office of Management and Budget (OMB)’s Uniform Grant Guidance (UGG).
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Topics:
not-for-profit,
compliance,
OMB,
NFP,
single audit,
Uniform Grant Guidance,
COVID-19,
PPP,
extension,
payment protection plan,
Office of Management and Budget,
Coronavirus Relief Fund,
Education Stabilization Fund,
UGG
Thanks to a recent memo from the Office of Management and Budget (OMB), some organizations subject to the Uniform Grant Guidance will no longer be provided an extension to file their Single Audit with the Federal Audit Clearinghouse. Memo M-20-26, Extension of Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations eliminates a previous six-month extension that had been granted to organizations with fiscal year ends falling between Dec. 31, 2019, through June 30, 2020. Those Single Audits would be due within the normal due date under the Uniform Grant Guidance, nine months after the fiscal year end.
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Topics:
not-for-profit,
compliance,
OMB,
NFP,
single audit,
Uniform Grant Guidance,
COVID-19,
PPP,
extension,
payment protection plan,
Office of Management and Budget,
Appendix XI
Every organization evolves. Boards turnover, communities change and reporting requirements receive updates. Not-for-profit organizations need to make continuous adjustments at every level of their operations in order to keep pace with shifting responsibilities.
Approaching updates with a “housekeeping” frame of mind may help your organization make the minor adjustments it needs to meet any new requirements. Periodic reviews of financial statement reporting processes, bylaws, board policies and mission statements help identify discrepancies between what the organization says it’s doing on paper and what activities it puts into practice.
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Topics:
not-for-profit,
compliance,
NFP,
Governance,
Misson Statements
The tax-exempt bond area is closely overseen and regulated by the IRS tax-exempt bond (TEB) division. In 2016, TEB has been allocating half of its resources to examination casework. Included in the examination casework category are referrals and claims, TEB’s market segmentation program and the division’s compliance check/soft letter program. Given the importance of tax-exempt bond financing to your organization, the complexity of maintaining post-issuance qualification of your bonds, and the IRS’s oversight of this area, your organization should understand the requirements for post-issuance compliance and monitor the use of bond-financed facilities to ensure continuing compliance. The penalties for noncompliance could be costly.
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Topics:
tax-exempt,
compliance,
tax compliance,
501(c)(3),
tax exempt bonds,
bonds,
Post-issuance compliance
A number of day-to-day operations present compliance risks for not-for-profit organizations. Organizations need to be aware of the regulations surrounding activities such as soliciting contributions and classifying contractors in order to avoid penalties. Failing to address and mitigate these areas of risk could lead to the loss of an organization’s tax-exempt status.
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Topics:
not-for-profit,
compliance
