2011 Tax Law Changes - Topic for December 7, 2010

If you are concerned about the impact 2011 tax law changes will have on your nfp, then make plans to join us Tuesday, December 7, 2010 when John Ritts, Tax Partner at RubinBrown, who specializes in nfp's, will take nfpFMA members through 2011 tax law changes affecting nfp's and how nfp's can prepare for them.

Controlling Audit Costs - Sieze Control!

On Tuesday, October 26, 2010, Jeremy Vinson of Anders, Minkler & Diehl, LLP provided insights for how nfp's can control audit costs. The basic take-away is for the nfp to take control of audit matters up- front, so that there are as few billing overrun hours as possible. Vinson's suggestions include:

• contracting with an audit firm for 3-5 years but re-evaluating the firm regularly
• negotiating audit fees by choosing an off-season time for the audit
• questioning unexpected costs
• attempting to resolve as many issues prior to the audit as possible
• completing confirmations and schedules prior to audit field work dates (asking for templates if needed)
• posting audit adjustments in a timely manner.

As with most aspects of vendor relations, continuous communication is key and will reap dividends.

Controlling Audit Costs - Topic for October 26, 2010

Audits already are anxiety-ridden enough. And breaking the bank to pay for them adds insult to injury. If you would like to learn ways to limit the cost of your nfp's annual audit, then make plans to attend our next meeting, October 26, 2010, when representatives from Anders, Minkler and Diehl will present best practices for controlling audit costs.

Managing Risk & Risk Management - Run for Cover(age)

On Tuesday, September 28, 2010, Michael Everding, of AHM Financial Group LLC, outlined many scenarios which exposed insurance coverage gaps. From fundraising events to simple car trips to the bank, nfp's are exposed to a variety of liabilities that need insurance coverage. Everding recommends updating insurance brokers with any changes to business operations. Also, Everding recommends adding riders to general liability policies rather than purchasing separate stand-alone policies to keep costs in check.

Managing Risk & Risk Management - Topic for September 28, 2010

Join us Tuesday, September 28, 2010 as we kick off the new program year with a session guaranteed to provide you with all you will need to know to pass Insurance 101. Michael Everding, Sr. Account Executive with AHM Financial Group LLC will present scenarios that create financial risk and strategies we can adopt to minimize it.

Please remember to bring your 2010-2011 dues to the meeting if you plan to order lunches for the year's meetings. Otherwise, you'll be taking a risk you may regret!!!

2010-2011 Dues - Are Due!!

All nfpFMA renewing members (and any new members joining at the September meeting) who plan to place lunch orders will be assessed annual dues of $70 for the 2010-2011 program year. Please make plans to bring your payment to the September meeting, Tuesday, September 28, 2010.

Thanks!!!

LEAN Accounting and Budgeting - Plan for it!

Today, Rick Feldt and Mike Lewis took the nfpFMA membership through the concept of LEAN accounting as it applies to budgeting. Most of the general public associates LEAN business practices with cost-cutting and layoffs. However, the best way to practice LEAN is to use it to change and streamline institutional practices. For the not-for-profit world, there are few institutional practices as entrenched as budgeting. To start budgeting LEAN, follow these Do's and Don'ts:

Don't

• Forecast to the wall (most budgets provide fewer and fewer projections as the end budget date draws near)
• Confuse forecasts with targets (be realistic with forecasts, optimistic with targets)
• Insist on forecast accuracy in an unpredictable world (forecasts are a best guess at most)
• Rely on Excel spreadsheets (instead, try to find a way to budget/forecast in the accounting software)
• Engage in excessive detail

Do

• Use a rolling 12 month forecast (update every quarter)
• Focus on critical drivers (rather than excessive detail)
• Use different time horizons for different decisions
• Match forecast with ability to see
• Move to advance planning (such as scenario planning)

LEAN budgeting involves changing from a static budget to a dynamic one, and in doing so, shortens the amount of time and resources spent on budgeting.

A good resource for LEAN accounting is, "Real Numbers: Management Accounting in a Lean Organization," by Jean E. Cunningham, Orest J. Fiume, and Emily Adams.