Audits, External Reporting & Disclosure

Accounting for Uncertain Tax Positions: A Requirement for Nonprofit Financial Statements

FIN 48, Accounting for Uncertain Tax Positions (now codified as ASC 740-10) was made a requirement for any entity with financial statements prepared in accordance with generally accepted acc

Activities Allowed or Unallowed

The specific requirements for activities allowed or unallowed are unique to each Federal program and are found in the laws, regulations, and the provisions of contract or grant agreements pertainin

Allowable Costs/Cost Principles

These principles describe the cost accounting requirements associated with federal awards.

Audit vs Review vs Compilation

A nonprofit organization can engage a Certified Public Accountant (CPA) to prepare its financial statements.  There are three levels of financial statement services offered by CPAs: Audits, Re

Audits, External Reporting & Disclosure

In this section we will cover:

Best Practice: Federal Grant Compliance Program

A "best practice" is the most effective way to achieve the desired outcome applicable to most organizations.  Our goal is to develop a compliance program for federal grants applicable to nonpr

Cash Management

When entities are funded on a reimbursement basis, program costs must be paid for by entity funds before reimbursement is requested from the Federal Government.

Common Disclosures

Some of the most common disclosures are:

Compliance Audits for Federal Awards

The Office of Management and Budget (OMB) issued a compliance supplement to its Circular A-133i.

Confirmations

The auditor will ask you to write confirmation letters to your banks, funders, lenders, and attorneys to confirm the amounts reflected in your records.  Confirmation letters are printed on you

Davis–Bacon Act

The Davis-Bacon Act requires that wages for "laborers and mechanics" employed by contractors (including subcontractors) of federally-funded construction in excess of $2,000 be paid in accordance wi

Eligibility

Eligibility specifies the criteria for determining the individuals, groups of individuals, or subrecipients that can participate in the program and the amounts of assistance for which they qualify.

Equipment and Real Property Management

Equipment and real property management provides standards for the use and disposition of equipment and real property purchased with federal funds.

FAS 116

What is FASB 116?

Statement of Financial Account Standards 116 (FASB116) is the primary guidance relating to the recording of contribution revenue by not-for-profit organizations (NFPs).

FAS 117

What is FASB 117?

Statement of Financial Accounting Standard 117 “Financial Statements of Not-for-Profit Organizations” (FASB117) is the primary guidance relating to the financial statement

Interepreting an Audit

After the audit is completed, the auditor will issue the organization an audit report. The audit report is addressed to the board of directors. The report includes:
 

Introduction to OMB Circular A-133

The A-133 compliance supplementi describes 14 types of compliance requirements and related audit objectives and procedures to be considered in performing audits subject

Key Disclosures

A key component of all audited and reviewed financial statements are the footnotes. It is in the footnotes that key transactions are explained and other important information is disclosed.

Matching, Level of Effort, and Earmarking

Matching, level of effort, and earmarking are the:

New Auditing Requirements for 403(b) Plans with Fiscal Years Beginning On or After January 1, 2009

Earlier this year, the U.S. Department of Labor (DOL) released new regulations regarding audit requirements for 403(b) plans.

New Standards for Audits of Organizations Using Outsourcing

Many nonprofit organizations utilize a third-party service provider to assist them with various administrative functions, including accounting and bookkeeping, assistance with conference registration,

OMB Circular A-110

What is OMB Circular A-110?

OMB Circular A-110 ("A-110") is officially named "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals,

OMB Circular A-122

What is OMB Circular A-122?

OMB Circular A-122 ("A-122") is officially named "Cost Principles for Non-Profit Organizations".

OMB Circular A-133-Reporting

Reporting requires the use of standard reporting forms authorized by the OMB or the awarding agency and establishes due dates for report submission.

Organizational Documents

Other Information

Pages

Subscribe to Audits, External Reporting & Disclosure