The latest view on not-for-profit accounting issues

Auditor General Fraud Alert – Billing Schemes

The Office of the Auditor General for the State of Arizona recently issued a fraud alert regarding common billing schemes. The Alert cites a 2010 study done by the Association of Certified Fraud Examiners that indicated most misappropriation schemes involve the theft of cash receipts or involve fraudulent disbursements of cash. The study also indicated …

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Are You Using Social Media To Achieve Your Marketing Goals? Part II

Now you have your marketing plan in place and some do’s and don’ts you are ready to get your accounts set up based on your target audience.  If you have defined LinkedIn, Twitter, Facebook and blogging as good social media tools for your organization read on to learn about some great resources for you to …

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Are You Using Social Media To Achieve Your Marketing Goals? Part I

I recently gave a presentation at our monthly lunch ‘n learns about using social media in not-for-profit organizations.  If you are not using social media I strongly encourage you to look into it.  Social media is very affordable (as it is mostly free), easy way to connect with your supporters, great way to maintain relationships …

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A Look into the Importance of Budgets for Governments and Not-for-Profits

Government and not-for-profit budgets are far more important than those for businesses because they are expressions of public policy and often carry the authority of law, preventing public officials from spending outside their budgetary authority.  The increased importance of budgets is reflected in government financial reports by a required report comparing budgeted and actual amounts.  …

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Not-for-Profit Automobiles

Completion of year end payroll tax returns, including preparation of Forms W-2, is just around the corner.  The taxability of employer provided automobiles must be taken into consideration when computing taxable wages of an employee. Not-for-profit Organizations often have a vehicle available for employees or have vehicles that are normally used for charitable activities.  The …

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Is Your Club or Association a Tax Exempt Entity? Part II

In my last blog post, I talked about a threshold level for the requirement to file Form 1023, (Application for Recognition of Exemption under Section 501(c)(3)).  Here is some additional information about small social clubs and filing requirements. As you may recall from some of our previous blogs, the Form 990-N became a filing requirement …

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Independent Contractors – Who Should Be Reported on Form 990?

Part 7, Section B of the Form 990 asks you to list the organization’s five highest compensated independent contractors.  It sounds simple enough, but here are some questions that might come up: What do they mean exactly by independent contractors? Independent contractors provide SERVICES, not merchandise or goods. Would this only include those that the …

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Violations of Loan Covenants – What Does this Mean for my Audit?

It these tough economic times, it is much more common for not-for-profit organizations to have loan covenant violations.  When a loan covenant is not met (for example, a requirement to maintain a maximum debt to tangible net worth ratio), the consequences can be very negative to the entity’s financial statements.  Remember that violating a covenant …

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Classifying Expenses – Is it Program or Supporting Services

Not-for-profit organizations are required to report financial information about the functional classifications of expenses, such as major program services and supporting services. There is often confusion surrounding when to classify an expense as program related versus supporting services (which is usually management & general or fundraising).  Program services are activities that result in goods or …

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Importance of an Audit Committee

It is a known fact that audit committees are an essential component in corporate governance.  The public has been increasingly focused on oversight and governance issues since the Enron scandal.  However these issues aren’t just for the “for-profit” industry.  It is becoming more and more of an issue for the not-for-profit world.  Since the re-vamp …

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