Author Archives:
Erin Carter

The financial reporting landscape for nonprofit organizations continues to change as standard setting organizations refine and enhance financial reporting requirements to increase transparency. The implementation of Accounting Standards Update (ASU) 2016-04, Not-for-Profit Entities, Presentation of Financial Statements for Not-for-Profit Entities, has ushered in several changes that nonprofits need to follow in the reporting process. One of the key changes made was the new requirement to make liquidity disclosures. Essentially, organizations are now required to provide financial statement readers with disclosures about liquidity including liquidity risk, restrictions and overall availability of assets.

Companies that offer a retirement plan including defined benefit and contribution plans may be required by the Employment Retirement Income Security Act (ERISA) to perform an annual audit of the plan. While small plans are exempt from this requirement, generally speaking, plans with over 120 total participants throughout the year are required to have an audit completed.

In February of 2016, the Financial Accounting Standards Board (FASB) released new standards to help businesses account for their leases. These standards, which were unveiled in Accounting Standards Update No. 2016-02, Leases, Topic 842 (ASU 2016-02), should be followed by any company that adheres to Generally Accepted Accounting Principles (GAAP). Interestingly, these new standards almost exclusively affect lessees; lessors have very little to worry about. The implementation deadline for these new standards is drawing near.

The potential for fraud exists in every company regardless of location and industry served. The unfortunate reality is some people will engage in behavior that takes money from the company and attempt to do so over an extended period.

Fraud is an unpleasant reality of doing business, one every company, regardless of location, industry served and revenue size, faces. The threat that dishonest employees, vendors and others pose to the financial vitality of a company cannot be overstated

In May of 2014, a new set of revenue recognition standards were released by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). These two bodies worked together to publish codified guidelines for how companies should report the revenues they earn from contracts with customers.

The first time a benefit plan (401k, 403b, pension, etc.) is required to have a benefit plan audit can be challenging and stressful. Generally speaking, once the plan has over 120 eligible participants at the beginning of the plan year, the IRS and Department of Labor (DOL) require that a plan audit is completed by an independent accounting firm.

Managing a company’s 401(k) or other retirement plan audit can be a challenging task. Ask anyone who is responsible for working with the audit firm and they will tell you it can be time consuming to meet the multiple and ongoing requests made throughout the process.

Many companies offer a retirement savings program as a benefit for existing employees and as an incentive to prospective employees. While these plans have become the standard for most companies, 401(k), 403(b) and pension plans can be difficult to manage.

Offering an employee benefit plan (EBP) is a wonderful benefit for employees, but it comes with some responsibility. For plan sponsors that have at least 100 employees eligible to participate (whether all participate or not), an audit must be performed annually by an independent CPA firm.