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PBMares

Recent Posts by PBMares:

Need-to-Know for 2017: Nonprofit Liquidity Information


It is hard to believe we've closed the door on 2016.
With the commotion of holidays and end-of-year requirements, some—particularly smaller nonprofits—may have forgotten about the latest Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities (Topic 958), issued August 18, 2016, by the Financial Accounting Standards Board (FASB). Several changes to nonprofit financial reporting include:

  1. Improvements to the presentation and disclosures for net assets classes from the previous three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) to two classes (without donor restrictions and with donor restrictions).
  2. Allowing free choice between the direct method and indirect method in presenting cash flows.
  3. Providing better information about functional expenses and disclosures about how expenses are allocated to management and general.
  4. Augmenting disclosures on underwater endowment funds.
  5. Unifying the reporting of investment returns.
  6. Enhancements to information provided about the liquidity and availability of financial resources.

It’s Time to Get Ready for the Changes to the Overtime Pay Rules


On May 18, 2016, the Department of Labor (DOL) announced final regulations
governing the salary level required for the white-collar exemption from the minimum wage and overtime protections of the Fair Labor Standards Act (FLSA).  Effective December 1, 2016, the threshold at which workers are exempt from overtime rules of FLSA will increase from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). 


How Not-for-Profits Can Make Pledge Forms More Transparent

Donations and contributions are the lifeblood for many not-for-profit organizations. Without the generosity of donors, these organizations would cease to exist. For this reason, keeping accurate records for auditing and reporting requirements is extremely important, as well as for internal tracking and monitoring by management. Ultimately, donors should know that their funds are being spent according to their wishes and auditors should be able to verify this.


Cyber Security for Not-for-profits

When you think of cyber security and data breeches, large government, financial, and retail entities typically come to mind. Since we tend to only hear of breaches with big-named, for-profit entities, many in the not-for-profit space tune it out, thinking these are problems only businesses experience. The reality is that data breaches can occur with any organization. Analysis of data breaches continues to highlight that more and more not-for-profits are being targeted.


Nonprofit Financial Statements: Change is Coming

This March, the Financial Accounting Standards Board (FASB) – the organization that establishes financial accounting and reporting standards – will release a first draft of the new financial reporting changes for non-profit organizations. The good news: everyone in the non-profit space can have a voice in accepting or rejecting the changes. It is highly recommended that all non-profits and financial statement users share their opinion with FASB – good, bad, or otherwise – since it will impact reporting requirements.


Ready or not, here comes the new single audit

It is hard to believe we are approaching the end of another year. With the commotion of holidays and end-of-year requirements, some – particularly smaller non-profits – may have forgotten about the latest update from the Office of Management and Budget (OMB), which has new requirements for those who receive federal awards.


Keep Financial Statements Simple

While it’s challenging to stay current with constantly changing compliance requirements for non-profits, and the increasingly complex accounting standards, the reporting requirements are slightly relaxed compared to other entities. The Financial Accounting Standards Board (FASB) has an Accounting Standards Codification (ASC) with requirements specific to non-profit financial statement presentation (ASC 958-205).


A Nonprofit Board’s Fiduciary Responsibility

Both the recession and wide-ranging scandals over the past few years have changed the perceptions of duties required of boards of directors in all industries - including nonprofits. Additionally, the Internal Revenue Service (IRS), through its revisions to Form 990, requires reporting by nonprofits on a range of governance issues that go far beyond financial reporting, including board member “fiduciary duty.” What is fiduciary responsibility and what does it mean to the board of a nonprofit?


Can You Prove You Are Making A Difference?