Article Archives: Deby MacLeod

Posted by: Troy Rector · Deby MacLeod

The Office of Management and Budget (OMB) recently issued Frequently Asked Questions regarding the implementation of Section 889(b) of the National Defense Authorization Act (NDAA) of Fiscal Year 2019. If you’re part of a not-for profit organization, you may be asking yourself, “What is the Prohibition on Covered Telecommunications and Video Surveillance Services or Equipment covered in Section 889 of the NDAA, and what do we need to do?”

In this article, we will provide an overview of this provision, including how it differs between Federal contractors and Federal grant recipients, and steps your organization should be taking to ensure you comply.

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Posted by: Sarah Wine · Deby MacLeod

Many private foundations are already familiar with the tax assistance CPA firms can offer them. But the range of services available to private foundations extends far beyond just compiling the 990-PF. Some other ways a CPA firm can help your private foundation include:

Financial Statement Assurant Services

Have you ever wondered whether your private foundation should have an audit? Some organizations obtain a financial statement audit to comply with state requirements, while others incorporate a financial statement audit into their governance oversight. Before deciding on whether or not to obtain this service, it is helpful to understand exactly what assurances a financial statement audit provides,

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Posted by: Deby MacLeod

May 21 Update: The FASB has voted to officially delay the effective dates for the Leases (Topic 842) and Revenue from Contracts with Customers (Topic 606) standards. The Leases (Topic 842) standard is now effective for private companies and private not-for-profit (NFP) entities for fiscal years beginning after December 15, 2021. The standard is effective for public NFPs that have not yet issued financial statements (or made them available for issuance) for fiscal years beginning after December 15, 2019.

The Revenue from Contracts with Customers (Topic 606) standard has been delayed for franchisors that are not public business entities and all entities that have not yet issued financial statements (or made them available for issuance) for fiscal years beginning after December 15,

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Posted by: Deby MacLeod

When the new revenue recognition standard came out, Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), it specifically excluded contribution revenue and investment returns. It appeared there would be little effect on many not-for-profit organizations. However, ASU 2014-09 resulted in renewed focus on certain revenue streams of NFPs, particularly U.S. Federal funding. In response, the Financial Accounting Standards Board (FASB) issued updated guidance in June 2018, Accounting Standards Update No. 2018-08, Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. ASU 2018-08 reiterated existing U.S.

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As you’ve likely heard, ASU 2016-14, called Presentation of Financial Statements of Not-for-Profit Entities, was issued in August 2016 and is effective for fiscal years beginning after 12/15/17. The standard applies to all organizations, regardless of size. The ASU has changes in five key areas:

  • Net asset classification
  • Disclosures about liquidity and availability of financial assets
  • Reporting expenses by function and nature
  • Reporting investment returns, and
  • The statement of cash flows

There has been much written about the changes themselves from an accounting perspective.

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Posted by: Deby MacLeod

This article originally appeared in Journal of Accountancy. Reprinted by permission.

Before deciding whether your not-for-profit organization should accept cryptocurrency for gifts, you must understand what it is. A cryptocurrency, or virtual currency, is a digital medium of exchange that can be used for purchasing, selling, and storing value, but it is not backed by a sovereign government.

In that light, bitcoin, ether, syscoin, and litecoin are among the best-known cryptocurrencies, but there are more than 2,000 cryptocurrencies listed on Coinmarketcap.com, with varying degrees of popularity.

The U.S. Treasury currently classifies cryptocurrency as intangible property or a commodity.

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Posted by: Deby MacLeod

When the new revenue recognition standard came out, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), it specifically excluded contribution revenue and investment returns. Therefore, it appeared that unless the organization had significant earned revenue, the standard would have little effect on many not-for-profit organizations. However, a consequence of ASU 2014-09 was renewed focus on certain revenue streams of NFPs, which resulted in a second revenue recognition update.

Under current accounting principles generally accepted in the United States (U.S. GAAP), aspects of revenue recognition for NFPs are subjective. The updated guidance,

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Posted by: Deby MacLeod

By Deby MacLeod, CPA

omb graphic

By now we are familiar with the OMB Uniform Guidance for federal awards, but how much do we know about its effect on non-profits and other non-federal organizations from a practical sense, and what should we be doing now to prepare for its implementation? What should we have already done?

Background

Recall that on December 26, 2013, the Office of Management and Budget (OMB) issued its Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance, or UG) that combined eight OMB Circulars into one comprehensive,

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Posted by: Deby MacLeod

By Deby MacLeod, CPA

Not-for-Profit recipients of Federal awards have been awaiting sweeping changes from the Office of Management and Budget (OMB) for the past two years, and the OMB delivered. On December 26, 2013, the OMB issued its new uniform guidance that changes the landscape of the administrative requirements, cost principles and Federal compliance audits for Federal awards.call out box February 2014

The new guidance combines an expansive body of regulations currently found in eight OMB Circulars into one codified body, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200), also known as the “Super Circular” or “Omni-Circular.”

The Super Circular will be implemented by the end of 2014,

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Posted by: Deby MacLeod

By Deby MacLeod, CPA

Having a good working relationship and receiving great client service – these are consistently the two most important criteria we hear from organizations when they’re selecting an auditor, and we do our best to fill those criteria when conducting an engagement. An important aspect to keep in mind is balance – how the auditor, as an “independent third party,” develops a good working relationship and provides great client service while maintaining independence.

Audits are important for many reasons. They may be required by state regulation or grantors. They may be considered by rating organizations whose reports are widely available on the internet and used by many donors.

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