New Developments in Finance for Nonprofits: National Alliance for Hispanic Health
The session covers fraud reporting standards, tax updates, OMB Circular A-133 updates, fraud awareness policy, conflict of interest policy, whistleblower policy, and international financial reporting standards. It features experienced professionals from Gelman, Rosenberg & Freedman CPAs discussing critical financial aspects for nonprofits, including audit risk, compliance with regulations, and involvement in nonprofit boards and organizations.
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Presentation Transcript
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Trevor Williams, CPA Senior Manager, Nonprofit Audit Jeffrey Freedman, CFE Supervisor, Nonprofit Audit October 4, 2011
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Trevor Williams, CPA Senior Audit Manager, Gelman, Rosenberg & Freedman CPAs 20 years of experience in audit, compliance and regulations Specializes in nonprofit audits, reviews and compilations Recipients of federal financial assistance programs In accordance with OMB Circular A-133 Focuses on the assessment and response to audit risk Nonprofit Involvement: Board member, MD/DC/VA Chapter of Lupus Foundation of America Former Treasurer, Mentors Inc. Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 2
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Jeffrey Freedman, CFE Supervisor, Gelman, Rosenberg & Freedman CPAs 14 years of experience in auditing, consulting and accounting Specializes in nonprofit audits OMB Circulars A-110, A-122 and A-133 audits Field office audits Fraud concerns Nonprofit Involvement: President of the Hebrew Day Institute Board member, Jewish Federation of Greater Washington Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 3
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Agenda Fraud Reporting standards Tax updates OMB Circular A-133 updates Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 4
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Fraud Fraud awareness policy Conflict of interest policy Whistleblower policy Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 5
New Developments in Finance for Nonprofits National Alliance for Hispanic Health International Financial Reporting Standards Background Implementation Effect for nonprofit organizations Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 6
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Lease Accounting Current Standards Have an option between capital lease and operating lease Balance sheet and income statement Proposed Standards Record all leases on the balance sheet Exceptions - short term leases Less than 12 months Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 7
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Who Is Interested in Your 990? IRS Charity evaluators State attorneys general Potential funders Competitors/detractors/media Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 8
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Changes to IRS Form 990 2010 is third year with the new form The IRS changes are primarily clarifications in instructions with a few modifications to the form itself Handout has highlights of changes Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 9
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Functional Expense Statement How and where you spend your money! During the audit and sometimes during the 990 preparation, too little attention is paid to the functional expense statement Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 10
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Functional Expense Statement (cont) Form 990 presentation is often very different from the financial statement presentation Functional Classification vs. Natural Classification Detailed reporting of some natural classifications required on Form 990 Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 11
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Functional Expense Statement (cont) Breakdown between program, management and general (M&G) and fundraising gets a lot of scrutiny from other stakeholders Charity evaluators take these percentages into account in rating your organization Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 12
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Governmental Accounting (A-133) Updates Revised independence rules Bookkeeping and preparing accounting records Preparing financial statements Internal audit services Internal control monitoring and assessments Information technology systems services Valuation services Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 13
New Developments in Finance for Nonprofits National Alliance for Hispanic Health GAO Indirect Cost Rate Study 2010 Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 14
New Developments in Finance for Nonprofits National Alliance for Hispanic Health Don t Forget! Annual Conflict of Interest policy for board and staff Financial accounting policies and procedures (to include procurement for federally funded programs) Document Retention Policy (to include electronic documentation such as email) Trevor Williams, CPA and Jeffrey Freedman, CFE Gelman, Rosenberg & Freedman CPAs 15
4550 Montgomery Avenue, Suite 650N Bethesda, MD 20814 Questions & Answers Trevor Williams, CPA Senior Manager, Nonprofit Audit twilliams@grfcpa.com twilliams@grfcpa.com Jeffrey Freedman, CFE Supervisor, Nonprofit Audit jfreedman@grfcpa.com jfreedman@grfcpa.com Phone: (301) 951 9090 Website: www.grfcpa.com www.grfcpa.com
