Overcoming Confusion Regarding FAR Cost Principles
By Paul Calabrese, Principal It may surprise you, but even government agencies get confused when it comes to which cost principles apply to a commercial government contractor (GovCon) versus a nonprofit organization. Typically, GovCons obtain federal procurement contracts while nonprofits receive financial assistance awards as grants or cooperative agreements. So, what happens when the agency…
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…
Internal Audit is a Critical Investment for Nonprofit Organizations
By Mark Tessar, CPA, CIA | Nonprofit Audit Supervisor By their nature, tax-exempt entities are under extraordinary scrutiny. With the IRS, external auditors, donors, watchdogs and stakeholders all analyzing their finances, nonprofit organizations must implement effective internal controls that decrease the likelihood of fraud, accounting mistakes or other inappropriate accounting practices that could impact the…
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…
Manage International NGO Risk Effectively with an External Field Office Audit
By: Max Manley, CPA | Nonprofit Audit Manager International NGOs (INGOs) working overseas in the development and humanitarian response sectors face a unique set of challenges and risks from both an accounting and operational standpoint. Whether your role resides at headquarters (HQ) or in a field office, as an INGO leader your responsibilities include managing…