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Grant Management & Compliance

Posted by Lesley L. Price, CPA on Aug 17, 2023

Charging Personnel Costs to Federal Awards

Salary costs represent the bulk of dollars from federal grants and often pose compliance risks and challenges to new and experienced recipients alike. One question we are often asked by clients is, "how can we maintain compliance with federal regulations regarding accurately supporting and recording personnel costs when not all of our employees complete and submit timesheets?"

In this article, we will discuss the federal requirements for charging personnel costs to awards, alternatives to timesheet processes, and common challenges and pitfalls to avoid when charging labor costs to federal grants.

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Demystifying Nonprofit Cost Allocations

Posted by Lesley L. Price, CPA on Jul 21, 2023

When asked what is at the top of their finance department’s “to-do” list, many nonprofits name the need for an updated cost allocation plan. An effective cost allocation strategy is essential to organizations’ understanding of how their resources are being deployed. It is also integral to performing cost analyses, such as evaluating funding requirements and comparing actual versus budgeted costs.

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Gifts in Kind: New Reporting Requirements for Nonprofits

Posted by Lesley L. Price, CPA on Oct 08, 2020

On September 17, the Financial Accounting Standards Board (FASB) issued an accounting rule that will provide more detailed information about noncash contributions charities and other not-for-profit organizations receive known as “gifts in kind.” Here are the details.

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President Signs Protecting Nonprofits From Catastrophic Cash Flow Strain Act Into Law.

Posted by Lesley L. Price, CPA on Oct 05, 2020

August 3, 2020, President Trump signed the legislation to assist nonprofits and government entities into law.

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Coronavirus Strikes Nonprofits in More Ways Than One

Posted by Lesley L. Price, CPA on Mar 20, 2020

Now present on every continent except Antarctica, COVID-19 has infected more than 125,000 people and is responsible for more than 4,600 deaths. With the number of cases in the U.S. continuing to climb, individuals and companies alike are taking steps to prepare for a pandemic. From a shortage of masks and hand sanitizer to CDC-imposed travel restrictions and the cancellation of conferences and other large events across the globe, this public health emergency is rapidly evolving and all sectors are having to navigate its impact and uncertainty around what the future holds.

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Nonprofits: Are You Ready For the New Contribution Guidance?

Posted by Lesley L. Price, CPA on Jan 07, 2020

When the Financial Accounting Standards Board (FASB) updated its rules for recognizing revenue from contracts in 2014, it only added to the confusion that nonprofits already had about accounting for grants and similar contracts.

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Is Your Not-for-Profit Financially Fit?

Posted by Don G. Chastain, CPA on May 24, 2018

Being financially fit and stable is critical to any business, including a not-for-profit (NFP). If an NFP has a weak financial position, it may not be able to sustain its operations. While the perception by many in today’s society is that most NFPs are generally financially healthy, this is not always the case. For example, a recently published report noted that 41 percent of charities do not expect to make a profit over the next three years. An NFP’s liquidity is an important story to convey to the users of its financial statements.
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IRS Focused on Charitable Donation Substantiation Compliance

Posted by Allison Moore on Aug 14, 2017

Recent Tax Court cases have demonstrated the Internal Revenue Service’s (IRS) increase in strict compliance with the substantiation requirements for charitable donations. For example, a $64.5 million charitable contribution was recently disallowed because there was no written acknowledgment from the recipient at the time the return was filed.

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FASB Issues ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities

Posted by Allison Moore on Oct 19, 2016

The Financial Accounting Standards Board (FASB) released the Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities on Aug. 18, and you can read the full ASU here.

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New Tax Act Has Much for Nonprofits

Posted by Allison Moore on May 11, 2016

The Protecting Americans From Tax Hikes Act of 2015 (the Act), which was signed by the president on Dec. 18, 2015, contains many provisions that directly affect tax‑exempt organizations. Many recent tax provisions have been so-called “extenders,” which required passage of legislation annually in order for them to continue to remain in effect. These were typically passed at year-end for the applicable year, making planning for such provisions impossible. Now, the year-end panic is over, as the Act makes many of these provisions permanent.
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