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…
By Carlos Hurtado, CPA | Nonprofit Audit Supervisor In recent years, nonprofit organizations have drastically changed how they structure their relationship with related organizations. The relationship of an organization and its related entities is not only important to their operational, programmatic and financial goals; it may also significantly affect the audit of their financial statements….
With organizations now required to present a statement of functional expenses under ASU 2016-14 and their financial information becoming more readily available to both donors and the public, it is more important than ever to have your expenses clearly identified and allocated properly. Incorrect functional and/or indirect allocation can render perfectly legitimate and necessary expenses…
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…
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…
Documentation can be challenging. A final rule was published in December of 2009 that revised the FAR cost principle on Travel Costs (FAR 31.205-46). The revision replaced the language “lowest customary standard, coach, or equivalent airfare” with “lowest priced airfare available to the contractor.” There has been much discussion as to whether the revision places additional…