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In September's edition of NFP Partners' newsletter we take a look at new FASB changes, recollect some key points discussed at the Abila MIP Fund Accounting™ live training and continue with the second article in our Accounting Best Practices of the month series. 
September 2016

What to Know About the FASB Change Affecting Financial Statements for Nonprofit Entities?


As you should be aware, there’s a new FASB (Financial Accounting Standards Board) standard that amends FASB 117 on the presentation of financial statements for nonprofit entities. Officially, it’s named ASU-2016-14; just “the ASU” will likely stick as the short-cut term. This has been several years in the making and is finally ready for voluntary early implementation, but mandatory for fiscal years starting after December 15, 2017.

Well, is this a big deal and what should the lead financial manager and the Board audit and finance committees for your organization be doing about it? I’d judge it as a medium-sized deal based on what will actually change. It’s definitely evolutionary, not revolutionary; although one wonders why the process took so long to deliver what is best termed a modest result. Follow this link to a summary article about the release. For a deeper dive into the original document, click here. Also, BDO has produced a 4-part video about the ASU that’s included in the Article of Interest section of this newsletter.

Given the lead time of a year or more there’s not much to do now, but to get educated and stay abreast as more details are communicated in the nonprofit financial arena and via your auditor. I encourage early adopters to comply in their fiscal year that ends before the mandatory compliance period. That will put them ahead of the game. 

To read the entire article, which discusses the major areas of and provides further insight on details surrounding the ASU, click here. It’s likely your auditing firm will provide additional information and guidance as the mandatory date grows closer. Take advantage of any outreach, seminars and webinars. We, at NFP Partners, may offer some organized guidance as well, stay tuned.

Best regards,
Lee Bengston, CPA                      
Founder

Replacing Old Habits 

It was a marathon end of the month for NFP Partners as we completed a basic and advanced training for Abila MIP Fund Accounting™ users. Luckily, technology cooperated and customers from across Colorado, Nebraska and Utah were introduced to features of MIP they had not used before. Others who tuned in were reminded of features they were taught back when they were a newbie but never used them.

Those in the training heard me say, several times, I was a “creature of habit.” My definition of a “creature of habit” is doing something a particular way, regardless of its efficiency. The goal of the training was to help participants rethink the habits that might be inefficient and how they could be done better.

Participants, hopefully, learned some new, resourceful ways. Some tidbits discussed included:

  • Data Entry Defaults – What are they and how do you use them effectively?
  • Recurring Entries – Do they really work well as a “to do” list?
  • Accounts Payable – How do you recover from check printing errors?
  • Budgets and Budget Versions – How can you create different budgets to report on while separating and/or combining them?

To continue reading, and learn more about what was discussed at our basic and advanced training for Abila MIP Fund Accounting users, please click here. We enjoyed the two full days of training and look forward to offering sessions again that will help you rethink those old, bad habits.
 

Laura Jorstad,
Managing Principal

Accounting Best Practices of the Month - Round Two!

Last month our ‘Best Practices of the Month’ series featured an in-depth look at accounts payable and bill pay. If you missed it, feel free to look it over here. As we continue with our series, we’ll now take a look at cash receipts. This can be the most important control to have in your organization to ensure your assets are protected and in the hands of responsible employees.

Read through the following suggestions and see if your organization follows any of the recommended practices for the cash receipts transaction cycle. Are there any you are missing and need to implement with your team?

Segregation of Duties
  • When it comes to receiving cash, it’s best to have different employees doing the following:
    • Receiving the cash
    • Recording the cash payments
    • Depositing the cash
    • Reconciling the cash receipts to deposits and the general ledger
  • Sometimes in small organizations it’s not always possible to completely separate duties. In instances such as this, be creative by using other employees or the board treasurer to make sure everything is documented and properly reviewed.
To continue reading, click here. Stay tuned for next month when we look at another accounting cycle.
 

Stephanie Underwood,
Nonprofit Accounting and Finance Consultant

In This Issue

Colorado Nonprofit Association Fall Conference

Please join NFP Partners at the Annual CNA fall conference, held again at the Renaissance Denver Stapleton Hotel. We are not presenting an educational program as in previous years but will have a table in the Exhibit area. Stop by and chat with our consultants to get better acquainted, receive some free “stuff,” or drop off your business card to win a raffle prize. Of course we would love to talk to you about accounting technology and outsourced accounting services. Click here to get the full scoop and to register. We will be located outside the breakout room at table 35. We look forward to seeing you there!

 

 

MIP Virtual Forum for October

After last month’s break for the basic and advanced user training, the Virtual Forum is back on schedule, with its upcoming date being Wednesday, October 19 at 10 a.m. The scheduled topic this month is budgets. For the users who attended the Budget Management training session, this will be a continuation of the conversation. We will address budget versions, entering budgets, revising budgets and using your budgets in your reports. To register, please click here

 

New Client!

NFP Partners is proud to announce Montrose Recreation District has aligned with us as its Abila Partner of Record. The Montrose Recreation District’s purpose is to provide, manage, and maintain quality recreational facilities, programs, and services to their district residents, which will enhance the learning, leisure, and recreation opportunities that promote a healthy community. Welcome, Montrose Recreation District!

 


Articles of Interest

We have discovered, and continue to explore, new sources of useful information for nonprofit executives and managers. Now, with our new website, we have archived the cumulative articles in a single blog post. Feel free to access the list of articles by clicking here. This month's added articles of interest are as follows: 

New Deferred Compensation Regulations: What Nonprofits Need to Know

VIDEO SERIES: Lee Klumpp on the New FASB Nonprofit Accounting Standards Update – and What It Means for Your Organization
 
   

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