2-Day Workshop Series Presented by Kim Klein

2-Day Workshop Series Presented by Kim Klein

The Nonprofit Association of Oregon is partnering with Bank of the Cascades and Emerald Valley Development Professionals to bring you a two-day workshop series presented by internationally known speaker and author, Kim Klein! We encourage you to come for the complete 2-day series at a discounted rate. Individual sessions are also available.  Day 1 is on Building Effective Fundraising Teams and Day 2 will cover How to Raise $50,000 in Six Weeks....
5 Key Things to Know about the New Revenue Recognition Standard

5 Key Things to Know about the New Revenue Recognition Standard

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. This standard will impact all entities that have contracts with customers, including not-for-profits. Many not-for-profit organizations are unsure how this new standard will impact them. Those concerns include which revenue sources the standard applies to, how to apply the standard, and when the standard will take effect. Below are five key things to know about the new Revenue Recognition Standard. 1. Converges with International Accounting Standards – The new standard is the result of a convergence with FASB and the International Accounting Standards Board (IASB) and took the two standard setting bodies over ten years to complete. The end result is the removal of numerous inconsistencies between the FASB and IASB revenue recognition standards. 2. Principle-Based Focus – One of the biggest changes is the move from rules-based accounting to a principle-based focus. Currently, there are over 200 industry-specific revenue recognition standards in the United States. Most of those rules-based standards will be gone once this new standard comes into effect. The core principle of the new standard focuses on the contract between the organization and its customers for the provision of goods or services, and more specifically, the rights and obligations between the two parties. 3. Follows a 5-Step Recognition Process – The new standard provides a 5-step process to recognize revenue. This includes (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and...
So You Have an Internal Control Letter. Now What?

So You Have an Internal Control Letter. Now What?

If you are part of organization that is audited or have been involved in audits with a prior organization, you understand that audits can cause a significant amount of stress and anxiety. This is especially true when there are audit adjustments or other deficiencies identified and an internal control letter is issued to the governing board. It’s no surprise that these letters can cause some strain on the relationship between the client and the auditor. First, what is the purpose of the letter? Auditors are required by professional standards to report, in writing, internal control matters that they believe should be brought to the attention of those charged with governance (the board). Generally, if your auditor is going to put an internal control matter in a letter, they have assessed that the matter was the result of a deficiency in internal controls. This is an important part of that audit that the profession does not take likely. Auditors spend a lot of time assessing how material audit adjustments and immaterial adjustments that have the potential to be material will be communicated in the internal control letter. Even if no adjustments are identified during the audit, a letter could be issued in the event that there is a significant recommendation the auditors would like to make, which may include enhancing internal controls, additional training for employees, system improvements or even governance recommendations. As noted above, internal control letters are usually the result of a deficiency in internal controls discovered during the audit, mostly commonly from a material audit adjustment. These letters include required language regarding the severity of the deficiency....