In February 2016, the Financial Accounting Standards Board (“FASB”) issued its highly anticipated leasing standard (Topic 842) in Accounting Standards Update (“ASU”) 2016-02. Private companies and not-for-profit organizations must adopt the new lease accounting standard for fiscal years beginning after December 15, 2021. Don’t miss: The end of LIBOR interest rates The purpose for this …
The SEFA (Schedule of Expenditures of Federal Awards) is a supplemental schedule to financial statements. Under the Uniform Guidance (2 CFR 200), a non-federal entity that expends $750,000 or more in federal awards during the entity’s year is required to have a Single Audit conducted. The SEFA is the primary basis auditors use to determine …
Form 1099 is the miscellaneous income tax form used to prepare and file income information that is separate from wages, salaries or tips. For nonprofits, you must issue this form when you contract individual workers and vendors to complete work for the organization. Form W-2G, Certain Gambling Winnings, is issued to report gambling winnings and …
Proper internal controls are essential for all organizations but can be very difficult for small nonprofits to accomplish due to size of the staff. It is critical that segregation of duties is implemented throughout the financial policies. Don’t miss: Is your nonprofit going through a name change? Four key controls (not all-inclusive) that should be …
From time to time, a non-profit organization may change their name to better reflect their mission. If your organization is going through a name change, here are the steps needed to report it to the IRS. Don’t miss: Nonprofit board governance best practices Report the name change on the next annual tax return (Form 990 …
Every year the Office of Management and Budget (OMB) releases one Compliance Supplement which is typically used by auditors to perform single audits. But for 2020, there were two. On Dec. 22, 2020, the OMB released the Addendum to the 2020 Compliance Supplement, which is effective for audits of fiscal years ending June 30, 2020, …
On May 29, I wrote an article on this topic, which was before official guidance had come out from the FASB. You may think the accounting for PPP funding would be straight forward, but unfortunately, it is not. Here are some questions a nonprofit organization should be asking. What options does a nonprofit organization have …
FASB has issued a proposed Accounting Standards Update intended to increase transparency regarding such contributed nonfinancial assets like gifts-in-kind. As many nonprofit organizations rely on these contributions to carry out their programs and related activities – the following is a brief overview of the changes, and how they may apply to your organization. ASU – …
This disclosure is easy to overlook but it’s important for proper financial reporting. A related party footnote disclosure is needed when transactions are recorded in the financials between the preparer and related parties. Understanding whom and what is considered a related party will help alleviate missed opportunities in disclosing related party transactions. Per ASC 850 …
The Arizona State Board for Charter Schools recently released the USFR Compliance Questionnaire for the fiscal year ended June 30, 2012. Although there were not many changes to the questionnaire from the previous year, there is one notable question that was added to the attendance section that related to the residency requirements that schools are …