ERMOND
Arledge Q&A
Changes in nonprofit reporting
(Editor's Note: Lindsey Williams ad-
dresses questions in this installment
of Arledge Q&A by the Edmond CPA
firm of Arledge & Associaties.)
Does my nonprofit organization
have to engage an independent audi-
$750,000, there is a requirement to
be audited in accordance with the
Uniform Guidance requirements.
Also, if you have significant funding
from a department of the State of
Oklahoma then you might also have
@ separate requirement in your grant
agreement to obtain an annual inde-
pendent audit and furnish that to
your organization's granting agency.
If none of the above applies to you,
then it’s ultimately up to your bylaws,
Board of Directors and
management to decide if your organi-
zation should have an annual inde-
pendent audit.
What are some of the financial re-
porting changes affecting nonprofits
in the next year?
In terms of financial statement
presentation, there have been quite a
few new accounting standards put
into place recently that might affect
your nonprofit organization. First,
you should be currently discussing
these changes with your auditor.
They can keep you informed on how
new accounting standards will be im-
pacting your organization's financial
statements and when the standards
need to be implemented. Second, if
you fall into the category of people
in the previous question who may
not currently have an auditor, there
are plenty of resources out there to
help you understand the new stan-
dards, but all the accounting stan-
dards updates can be found at
www fasb.org. The list of new stan-
dards might seem overwhelming, but
keep in mind not all of them will
apply to your organization.
Are there any changes that impact
broadly across the majority of non-
profit organizations?
One of the key stan-
dards updates (ASU) that we see af-
fecting virtually all of our
organizations is ASU 2016-14, Pres-
entation of Financial Statements of
Not-for-Profit Entities. This update
has been talked about in depth since
2016, but the implementation dates
weren't effective until recently. If
your fiscal year end is Dec. 31, you
need to apply this standard to your
2018 financial statements and if your
fiscal year end is any other date, this
standard applies to your 2019 finan-
cial statements. The key changes of
this ASU involve changes to net asset
dlassifications, functional expense re-
porting, liquidity disclosures and
other minor changes to the state-
ment of cash flows, underwater en-
dowments, and net investment return
presentation.
How can | learn more about
changes in nonprofit reporting and
other requirements?
Our firm hosts an annual Not-for-
Profit Accounting and Finance Semi-
nar that covers a wide range of topics
including audits, tax law changes and
updates. This year, sessions will also
cover employment law issues for non-
profits, donor relations matters and
online marketing. The seminar is
open to not-for-profit accounting and
finance professionals and agency ex-
ecutives as well as board members.
Up to six hours of CPE credit are
available.
When Is the seminar and how do I
The seminar is set for 9 a.m. June 4
at Francis Tuttle Technology Center's
Business Innovation Center, 2824 Pro-
gressive Drive in Edmond. The cost to
attend the seminar is $50 and lunch
will be provided. To register, visit jmac-
pas.com/seminars. For more informa-
tion, contact Lindsey Williams, CPA, at
lindsey@jmacpas.com or 405-348-
0615.
Lindsey Williams, CPA, is audit
manager at Arledge and Associates,
PC, an Edmond-based i
firm. Arledge and Associates, PC is a
recognized leader in the accounting
industry offering practical solutions in
the firm offers outsourced CFO, con-
troller and cloud-based accounting so-
lutions.
mation only and does not constitute
tax advice or any other professional
sult a professional tax advisor. This
article is not intended for and cannot
be used to avoid future penalties that
may be imposed by the internal Rev-
enue Service.