Article Archives: 2021

In response to the COVID-19 pandemic, the United States government passed a series of funding initiatives, including the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the American Rescue Plan Act of 2021 (ARPA). These stimulus packages have directed a great deal of money toward not-for-profits to help ease the economic burden caused by the pandemic and to increase not-for-profits’ capacity to carry out their missions. As a result of these stimulus packages, many not-for-profits are either receiving their first federal funding dollars or exceeding the Single Audit threshold of $750,000 of expenditures in their fiscal year for the first time.

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On November 10, 2021, the FASB board voted unanimously to reject a request for a two-year extension to the effective date of the new lease accounting standard. Private companies and not-for-profit organization adoption requirements are now imminent and will not be subject to any further extensions.

Introduction:

In February 2016, Accounting Standards Update No. 2016-03, Leases (Topic 842) was issued with the intent to improve financial reporting for leasing transactions. After numerous extensions, the guidance will now be effective for fiscal years beginning after December 15, 2021 for private entities. Thus, for calendar year entities, the guidance will be effective January 1,

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Posted by: Rene Schaefer in Manufacturing.

The manufacturing industry makes up the backbone of the U.S. economy and, as such, there are many tax incentives aimed at helping manufacturers grow and thrive. Below, you’ll find 10 of these manufacturing tax incentives available to you in 2021:

Depreciation Expensing Under Section 179 and Bonus Depreciation

Manufacturers are allowed to expense up to $1.05 million in fixed asset additions under Section 179 if the total additions are less than $2.62 million each year. Section 179 expense is limited to taxable income and allows the taxpayer to select which assets to expense and how much. It’s important to note more states allow Section 179 than bonus depreciation.

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Posted by: Victoria Kitts

Originally published on 6/30/2021; updated to reflect changes in the OMB 2021 compliance supplement.

If your organization receives federal funding subject to the rules and regulations in the Uniform Guidance, make note of changes made in the fall of 2020 to the procurement standards.

Though these changes were made and became effective in November 2020, many not-for profit organizations are now receiving federal grants for the first time, highlighting the need to be aware of the procurement standards contained in the Uniform Guidance.

Overview

Procurement refers to the purchase of goods or services,

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Posted by: Pete Miller in SSPA Compliance.

Since the emergence of specialty service providers, data sharing between companies has grown at an exponential rate. As a result, specialty service providers are increasingly being asked to demonstrate their ability to protect confidential corporate data and private personal information as a condition of being hired.

Microsoft, who leverages specialty service providers extensively, has been a leader in driving compliance practices relative to security and privacy concerns with their Supplier Security and Privacy Assurance program (SSPA). According to their program guide, “SSPA is a partnership between Microsoft’s Procurement, Corporate External and Legal Affairs, and Corporate Security groups to ensure privacy and security principles are followed by its suppliers.”

Any supplier that processes Microsoft’s confidential information or the personal data of its employees and/or customers must comply with this program as a condition of being hired by Microsoft.

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After 12 years of dedicated work driven by a committee of the Washington State Bar Association, the Washington State Legislature passed the Washington Nonprofit Corporation Act in 2021. The Act (RCW Chapter 24.03A) takes effect on January 1, 2022 and contains many provisions of interest to nonprofit organizations. Below is a summary of these provisions.

Board of Directors and Officers

The Act provides rules for the board of directors and officers in a few key areas. For public charities, it establishes a minimum requirement of three board members. For all nonprofit corporations, board officers must include a president, secretary, and treasurer,

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This summer, many eligible live performing arts organization operators; live venue operators or promoters; theatrical producers; motion picture theater operators; talent representatives; and museum, zoo, and aquarium operators who met specific criteria received notification from the Small Business Association (SBA) that they would be receiving a Shuttered Venue Operators Grant (SVOG) award and potentially a supplemental grant as well. This article will cover the revenue recognition and federal compliance (Single Audit) requirements for these SVOG awards.

Determining Revenue Recognition for SVOG

Now that your entity has received the award, the next step is to determine the proper revenue recognition. The relevant guidance for this type of cost reimbursement federal award falls under U.S.

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If you were one of the fortunate few to receive a Restaurant Revitalization Fund (RRF) grant, here are the top five post-award things to do:

1. Plan Your Spending

The funds can be used on the following eligible expenses incurred between February 15, 2020 and March 11, 2023:

  1. Business payroll costs, including sick leave and costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums. Reminder – do not include compensation for employees earning over $100,000.

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Last May, Clark Nuber published an overview of Washington state’s capital gains tax that takes effect on January 1, 2022. Shortly after the act was signed into law by Governor Inslee, a lawsuit was filed by the Freedom Foundation, represented by Seattle law firm Lane Powell. The lawsuit alleges the new tax violates the Washington State Constitution, as well as the Commerce Clause of the U.S. Constitution, by taxing the sale of capital held out-of-state by Washington residents.

A second lawsuit was filed on May 20, 2021 by former Washington state Attorney General Rob McKenna (now with the law firm Orrick Harrington &

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Each year, the Office of Management and Budget (OMB) issues a 2 CFR Part 200, Appendix XI Compliance Supplement (Compliance Supplement). The Compliance Supplement provides a road map that auditors must follow when performing a Single Audit (established under the Single Audit Act of 1984), and it can be used as a tool by auditees to better understand the audit process and what the auditors will be testing.

With the large number of new Federal COVID-19 programs being authorized, and the amount of new Single Audits being undertaken this year because of them, the Compliance Supplement is as important as ever.

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