Rose-Paul web high-resPartners Rose Doherty, CPA, and Paul Doetsch, CPA, CMA, attended the AICPA Not-For-Profit Industry Conference June 11-13, 2014 in Washington, DC. Nonprofit CPAs from around the country were in attendance to get the latest news and updates from industry experts and thought leaders.

Of interest at this year’s conference was the impending new FASB proposal, which will likely come out as an exposure draft to be released in the fall. It will probably include a reclassification of net assets.

The current environment of donor accountability was also discussed. Donors want more information on the NFPs that they support.

Fraud prevention was front and center again this year as various fraud cases were studied in-depth to identify tools and processes to assist in fraud mitigation and timely detection if fraud occurs.

New changes are coming for those who receive federal funding. The Office of Management and Budget (OMB) issued new grant guidance on December 26, 2013. This new guidance eliminates duplicative and conflicting information and is entitled Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Guidance highlights include:

  • All OMB guidance such as A-102, A-89, A-87, A-133, A-50, A-110, A-21, and A-122 have been streamlined and codified in 2 CFR (Code of Federal Regulations) 200. Not-for-profit entities will need to implement the new administrative requirements and cost principles for all new federal awards made after December 26, 2014. These requirements will apply for any additional funding to existing awards (referred to as funding increments) made after that date.
  • The requirements are effective for fiscal years beginning on or after December 26, 2014. This translates into entities with fiscal year ending dates of December 31, 2015 and beyond being subject to the new requirements. No early implementation is permitted.

Other interesting topics included:

  • GAAP Update
  • Cloud-Based Dashboard Reporting
  • Balancing Brevity, Understandability, and Completeness of Financial Statements
  • Determining the Appropriate Level of Reserves for Your Organization
  • IRS Update
  • Misstatements and Restatements

Let us know if you have any questions or would like further information on any of the topics mentioned above.