Article Archives: Candi Avery

Posted by: Candi Avery

Not-for-profits may all have different missions, but a commitment to transparent and accurate financial reporting is something they all should have in common. Audit committees play a key role in providing governance and oversight of the financial reporting process. Here are some common considerations for building a strong and effective audit committee.

Can We Combine the Audit Committee with the Finance Committee?

Combining the audit and finance committees may seem like a practical and efficient use of both staff and volunteer resources and time, and it can be hard enough just filling the finance committee. However, it’s important to distinguish the different purposes these committees serve.

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Posted by: Candi Avery

Initially enacted in 1938, the Fair Labor Standards Act (FLSA) requires employers to provide their employees with a minimum wage and overtime pay. Unless certain exemptions are met, employees are eligible for overtime pay for any hour worked over 40 in a workweek. The overtime pay rate must not be less than one and one-half times the employee’s regular working rate. Under the FLSA, an employee qualifies as exempt from the payment of overtime if they meet a “minimum salary threshold” test and perform certain specified executive, administrative, or professional duties.

On September 24, 2019, the Department of Labor (DOL) announced its final rules updating the salary threshold for the “white collar” exemptions.

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Posted by: Candi Avery

The ultimate goal of providing an organization’s board with financial reports is to help them understand where the organization is and where it needs to go. Unfortunately, it is a common struggle when reporting to strike the right balance between providing meaningful, comprehensive information and being engaging to your readers. Below are some tips on how to accomplish both when presenting essential financial information to the board.

Provide Training

Every board member needs to understand an organization’s financial information to make informed decisions. However, board members bring different skills and talents to the table, and not all are going to know how to read and use not-for-profit financial statements and reports.

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Posted by: Candi Avery

In August 2017, the Financial Accounting Standards Board (FASB) issued an exposure draft, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The draft is intended to provide a more robust framework for determining the proper accounting treatment of grants and contracts.

Why is the Guidance Necessary?

Under existing guidance, there has been a lack of consistency among not-for-profits in accounting for grants and contracts, particularly those from government agencies and private foundations.

The proposed Accounting Standard Update (ASU) provides clarifications to help organizations evaluate if a transaction should be accounted for as a contribution,

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Posted by: Candi Avery

Candi Avery, CPA, CGMA

Up until now, there has not been guidance related to going concern analysis and financial statement disclosure requirements in U.S. GAAP. Existing guidance has been embedded in the auditing standards, which have always required that auditors, not management, evaluate an organization’s ability to continue as a going concern for a reasonable period of time.

To help provide clarity around the issue, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.

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Posted by: Candi Avery

By Candi Avery, CPA, CGMA

Originally enacted in 1938, the Fair Labor Standards Act (FLSA) requires employees to be paid a minimum wage and overtime pay at a rate of not less than one and one-half times the employee’s regular rate for hours worked over 40 in a workweek, unless certain exemptions are met.

Under the FLSA, for an employee to qualify as exempt from the payment of overtime they must meet a “minimum salary threshold” test and perform certain specified executive, administrative or professional duties. In July 2015, The U.S. Department of Labor (DOL) issued proposed changes to the overtime exemption rules that are estimated to entitle an additional 4.6 million workers to overtime protection under the FLSA.

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Posted by: Candi Avery

By Candi Avery, CPA, CGMA

The City of Seattle will soon have the highest minimum wage in the nation. In June 2014, the Seattle City Council signed into law an ordinance that increases the minimum wage for employees working in the City of Seattle to $15 an hour over the next 3 to 7 years, dependent upon the size of the business.

The law becomes effective April 1, 2015, and employers should prepare now for proper implementation. The following are some key provisions of the law and considerations that will help your organization prepare.

Who Does It Apply To?  » Read more

Posted by: Candi Avery

By Candi Avery, CPA, CGMA

Charities rely on the generosity of donors to make programs happen, and contributions are often the lifeblood of the organization. Organizations that build responsible fundraising practices are more likely to succeed than those that do not. The following are practical guidelines, policies, and practices that charities soliciting funds should review and address:

1. Abide by the Code of Ethics and Donor Bill of Rights

Without public trust and confidence, fundraising would not be able to exist. Ethical, responsible fundraising practices should be openly talked about and frequently communicated within each organization. The Association of Fundraising Professionals (AFP) has developed the Code of Ethics,

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