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
New requirements will affect private college and university entities in 2020. All entities will be required this year to include in their financial statements additional supplemental information that will allow the United States Department of Education (DOE) to link the support for the various elements that go into the so-called “Composite Score,” which is used to establish the financial health of private colleges and universities. We expect most organizations to include this information in the Uniform Grant Guidance version of their reports as an additional supplemental schedule. It is expected there will be some impact on the level of detail in the footnotes of the basic financial statements to ensure that every element can be tied directly to the financial statements.
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Topics:
reporting requirements,
not-for-profit,
NFP,
Department of Education,
Uniform Grant Guidance,
DOE,
Financial Statement,
COVID-19,
NACUBO,
higher education,
private university
Changes are on the way for how not-for-profit organizations classify net assets and report their statement of activities, cash flows and liquidity. The updates come as part of the Financial Accounting Standards Board (FASB)’s exposure draft of the proposed accounting standards update, Presentation of Financial Statements of Not-for-Profit Entities. Provisions outlined in the update reflect recommendations from the FASB’s Not-for-Profit Advisory Committee (NAC) as well as feedback from stakeholders. Stakeholders identified the following areas for change because of either diversity of practice under current U.S. generally accepted accounting principles (GAAP) or because of the complexity involved in the current reporting requirements.
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Topics:
reporting requirements,
FASB
