No meeting for December, 2007

Because the 4th Tuesday of December will fall on Christmas day, the nfpFMA programming committee has made the wise decision to cancel the December meeting!
Have a great holiday season and we'll see you at the next meeting, January 22, 2008.

Allocations Part I - Identify Direct Costs First

Allan Larson of Larson Allen facilitated an informative discussion about allocations Tuesday. One suggestion he gave was for those of us grappling with allocations to work in sequential steps, and begin by identifying direct from indirect costs. Code direct costs to the appropriate function instead of coding all administrative costs (direct or indirect) to allocation accounts. Allan pointed out that we'll save ourselves much aggravation if we take time during the invoice coding process to identify admin costs that can be directly coded to a function.

Allocations Part I - Topic for November 27, 2007

Join us on November 27, 2007 for the first of two meetings tackling the topic of allocations. Allan Larson of Larson Allen will lead a two-part discussion about allocations. Some of the points he will cover will include determining ways to allocate, deciding which accounts to allocate, the importance of a high operating efficiency percentage, direct donor benefit costs from special events, and the lack of nfp institutional standards for allocating. Also, Allan will discuss the relationship between his name and that of his firm. See you on the 27th!

403(b) Plans and You - Revocation of revenue ruling 90-24

On October 23, Dan McGee of Tax Deferred Services led a lively discussion about the changes taking place in 403(b) plans because of the revocation of revenue ruling 90-24. The revocation will require that all transfers be made to financial institutions with which the sponsor has set up "sharing agreements." Transfers to financial institutions with which sharing agreements have not been established will trigger early redemption penalties and taxes.

Dan recommends a four-step process to prepare for the 90-24 revocation:
1. Notify employees
2. Request sharing agreements from financial institutions
3. Alter the salary reduction agreement to state information about sharing agreements
4. Update your plan document

2007-2008 Annual Dues...Are Due!!

Please maintain your membership with the nfpFMA by paying the $40 annual dues. Your dues payment will cover the cost of food and rent for meetings from September, 2007 through June, 2008. Please print out the dues invoice we sent in the October meeting email notice and mail your dues to our Treasurer, Steve Kassing, or give your payment to Steve at the next meeting.

403(b) Plans and You - Topic for October 23, 2007

Dan McGee, of Tax Deferred Services, will be the guest speaker at the next nfpFMA meeting, Tuesday, October 23, 2007. Get ready to hear valuable information about changes to 403(b) regulations and how we as not-for-profit financial managers can cope. See you there!

Latest Audit Developments - Risk Assessment Standards

Rick Aselage also pointed out that not-for-profits will want to note the new risk assessment standards that SAS 112 implements. Risk is assessed on entity level internal controls and business process level internal controls.

Entity level controls include financial reporting, IT environment, and management override practices as well as intangibles such as the "tone at the top." Business process level controls include activities such as bank reconcilations and purchase order approvals.

The key point to the new risk assessment is that "inquiry alone is not sufficient to evaluate internal control design...transaction or system walkthroughs need to be documented as evidence of internal control existence and design." Rick advises that we evaluate internal controls and address any concerns before our next audits.

Latest Audit Developments - SAS 112

On Tuesday, September 25, 2007, Rick Aselage, Partner in RubinBrown's Assurance Services Department, spoke to nfpFMA members about the ways SAS 112 will affect our forthcoming audits.

SAS 112, "Communicating Internal Control Related Matters Identified in an Audit," focuses on the potential for, not the existence of, an actual misstatement. It breaks internal control deficiences down into three categories: Control deficiency, Significant deficiency, and Material weakness.

The impact of SAS 112 on our audits will be twofold:
1. We can expect that auditors will identify and report more internal control deficiencies.
2. We can expect more questions from auditors regarding internal controls and we will be responsible for addressing "how a control deficiency is not a significant deficiency or material weakness."

Latest Audit Developments - Topic for September 25, 2007

Please join us at our next meeting, Tuesday, September 25, when Judy Murphy, lead partner in Rubin Brown's non profit industry group will present "Latest Audit Developments." You are guaranteed to hear valuable information that will help you prepare and complete your next audit successfully!

Welcome to the St. Louis not-for-profit Financial Management Blog!

This blog is administered by members of the St. Louis Not-for-Profit Financial Management Association. We hope to gather here to exchange best practices in the field of not-for-profit finance, accounting, and management, and comment on the latest NFP news of the day.

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