Category: Audit & Assurance

An Audit Committee Offers Substantial Value Beyond the Audit

By: Laura Malcom, CPA | Audit Manager Most nonprofit organizations today are led by a volunteer board of directors responsible for helping the group achieve its mission while providing sound governance and financial management1. In keeping with their fiduciary duty to provide effective financial oversight, many boards appoint an audit committee if not already required…

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UG Compliance Requires Awardees Address Key Sub-Recipient Risk Areas

By: Tom Netznik, CPA | Nonprofit Audit Manager Whether your organization has historically provided sub-awards to domestic or international nonprofit organizations or is new to these types of transactions, there are important steps you should take to not only ensure compliance with federal regulations, but also protect your organization from possible loss due to unallowable…

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Best Practices for Nonprofits Implementing ASU 2016-14

By: Alison Albrecht, CPA | Nonprofit Audit Supervisor The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, to enhance the presentation of financial statements and provide more meaningful information to the readers of the financial statements. One of the changes included in the ASU 2016-14…

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Identifying Contributions vs. Exchange Transactions Clarified with ASU 2018-08 (Topic 958)

By: Lindsay Dean, CPA | Nonprofit Audit Senior Manager In June 2018, FASB issued Accounting Standards Update (ASU) 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. Nonprofit organizations with fiscal years that begin after December 15, 2018 and make or receive contributions should be prepared to…

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Why is Preparation of a Complete and Accurate SEFA so Imperative?

By: Laura Malcom, CPA | Audit Manager The schedule of expenditures of federal awards (SEFA) is the “meat” of any Uniform Guidance audit. Often it is one of the first pieces of information that a CPA firm will request when designing and planning the audit. The total expenditures reported in the SEFA is the determination…

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Preparing for an Audit Made Easier with Financial Compilations and Reviews

By: Steven Lyons, CPA | Outsourced Accounting and Advisory Services Manager In addition to providing a more cost-effective alternative to a financial statement audit, compilations and reviews offer businesses and nonprofit organizations a number of important advantages. Perhaps most important, compilations and reviews help your organization prepare for a future financial audit because they include…

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Achieving Proper Segregation of Duties with Limited Nonprofit Resources

By: Alejandra Jensen, CPA, CFE | Nonprofit Audit Manager Although they recognize the importance of maintaining proper segregation of duties (SOD) as a risk management best practice, many nonprofits still struggle because of limited staff, scarce resources and tight budgets. These organizations are under pressure to cut costs, increase revenue, and identify additional funding streams…

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Anticipating Going Concern Issues Can Save Nonprofits Valuable Time and Effort

By: Omid Mohebbi, CPA | Audit Supervisor Introduction Auditors occasionally come across going concern issues in the course of performing their audit procedures. These issues essentially refer to the ability or inability, as the case may be, of the audited entity to continue operations beyond a certain timeframe, which the standards refer to as “a reasonable…

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Unrestricted Net Assets and Key Financial Ratios Help Nonprofits Focus on their Financial Health

By: Michael Shaffer | Nonprofit Audit Manager In my 18 years as an auditor of nonprofit organizations, I have sat in a large number of offices for meetings with my clients. I always enjoy seeing how folks have their offices decorated, but one office stands out to me more than others over the years. This…

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Fast-Track Your Compliance with the New UG Procurement Standard

The two-year deferral period for implementation of the procurement standards under Uniform Guidance (UG) is officially over.  As of midnight on January 1, 2017, organizations receiving federal funds with a calendar year-end of December 31 MUST implement policies and procedures to ensure compliance with the standards effective immediately. Is your organization behind or struggling with…

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