Carrie Minnich earlier this month published a blog post about fraud in nonprofits. She points out that organizations can be targets of fraud due to limited staff and tight budgets. We often believe that it won’t happen to us; however, there have been 2,410 cases (foreign and domestic) in a 22 month period according to the Association of Certified Fraud Examiners. Carrie sites the Association of Certified Fraud Examiners report which noted that on average a nonprofit loses 5% revenue in any given year from fraud. One key step to reduce fraud risks is to have strong internal financial controls, said Carrie.
Carrie Minnich, CPA recently posted about endowments for Mission Minded, Dulin, Ward & DeWald, Inc.’s nonprofit blog.
In her post, she defines two different types of endowments. The first is donor restricted. This type of endowment is “a contribution to the organization in which the donor stipulates that the contribution be invested for a specified time or in perpetuity.” The second is a board designated or quasi-endowment. For this type, “money is being set aside for future use as opposed to supporting current activities” and is unrestricted. Carrie’s tip is no matter which type of endowment fund your organization has, be sure to have a policy regarding how the money is managed.
Carrie Minnich, CPA recently posted about in-kind contributions for Mission Minded, Dulin, Ward & DeWald, Inc.’s nonprofit blog.
Bottom line – record on your financials the fair market value for most gifts, fund raising items, facilities, and services. Carrie goes into details on her blog with some of the exceptions to the rules. She also notes that it is important to record all contributions, even if not required for reporting on financials.
Are you up to date on your business entity reports with the state of Indiana? Carrie Minnich in a blog post from August 2016 addresses how an organization can be reinstated if the reports have not been filed. The problem with not filing is that the organization will be administratively dissolved and may not conduct business.
Below are the steps Carrie mentions that are required to be reinstated.
1. “Complete Form AD-19, Affidavit for Reinstatement of Domestic Corporation and Form ROC-1, Correct/Change of Responsible Officer Information to obtain a Certificate of Clearance from the Indiana Department of Revenue.”
2. “The Certificate of Clearance will be mailed to you by the Indiana Department of Revenue in approximately 4 weeks.”
3. “Complete Form 4160, Application of Reinstatement. You must have a Certificate of Clearance from the Indiana Department of Revenue before the Application for Reinstatement can be filed. There is a $30 reinstatement fee required with this form.”
4. “Complete Form 48725, Indiana Business Entity Report and pay the required filing fees for all years owed. It is not necessary to complete a separate form for each filing year owed; however, you must pay the filing fee for each year and complete the most current form.”
5. “Mail the Certificate of Clearance, Application for Reinstatement and Business Entity Report, along with the required fees noted in 3 and 4 above to the Indiana Secretary of State. All four of these must be mailed together.”
Do you accept credit card payments at your nonprofit? If you do, then this blog post is for you.
Carrie Minnich in her July 27, 201 post on DWD’s Mission Minded Blog addresses Payment Card Industry Data Security Standards (PCI DSS). She explains that there are a number of requirements and most importantly is to protect the cardholder’s data. This data should not be stored unless it is required for business needs. Information that is stored needs to be restricted and only accessible with a password or encryption.
To read the requirements, what can be stored, and what data cannot be stored, read Carrie’s full blog post here.
Carrie Minnich begins her latest post from the DWD Mission Minded blog with the question – want to make your auditor happy? Of course I said yes with the utmost enthusiasm! And so I read on.
She got me with an emotional hook by commenting that most people don’t look forward to their annual audit. I remember my first – it was with the Department of Education at a university. It was a busy week working with the auditors and all ended well. We had many things prepared (one of Carrie’s tips in her blog post) and that greatly helped us all be successful.
There are seven other tips that Carrie points out that would “make your auditor happy.” To read her list, check out the Mission Minded blog here.
This week Carrie Minnich posted about a proposed change for the Statement of Cash Flows from the Financial Accounting Standards Board. For those of you who are unfamiliar with a cash flow statement, it is a report with the cash generated and expended for a designated time period. The new change would require subtotals to include restricted cash. Currently, the standard practice is to include cash and cash equivalents. The decision for the proposed change will be made after June 27, 2016.