Internal Controls for Your Form 990: What to Know Christa Divis, - - PowerPoint PPT Presentation
Internal Controls for Your Form 990: What to Know Christa Divis, CPA, MBA, CGMA VP of Finance and Chief Financial Officer Coastal Community Foundation Agenda 1. Introductions 2. Internal Controls 3. Form 990 Overview 4. Putting It Together!
Christa Divis, CPA, MBA, CGMA VP of Finance and Chief Financial Officer Coastal Community Foundation
someone else to part with something of value
D: Administrative Assistant Monitoring Process B: Bookkeeper A: Executive Director or senior‐level manager C: Treasurer Cash Receipt Process Bank Reconciliation Process
D C B A
Checks/Cash Opens& Sorts Mail
in‐house Creates Check Log and copies Checks Receives log & check copies Enter into Accounting System, match to receipt Creates Deposit ticket Receives deposit ticket & checks Deposits funds, receives receipt Reconciles Accounting System, deposit tickets & bank statement Bank statement Reviews bank statement, makesa copy Copy of statement received Reviews bank reconciliation Randomly requests copiesof deposits and completed bank reconciliations to review
Who uses the data?
What is expected?
Why do we care?
Page Form Section Key Points 1 Part I Snapshot; Volunteers; Tax year 2 Part III Major programs: Look for good detail 3 ‐ 4 Part IV Are schedules attached for "Yes" answers? 5 ‐ 6 Part V & VI Board member independence. Significant asset diversion? Are all policies "Yes" that can be? 7 ‐ 8 Part VII Different from the rest of form; Is Exec. Director listed? Key employees > $150k; Top 5 Highly Comped > $100k Independent contractors > $100k 9 Part VIII Line 1 vs line 2; Related vs Unrelated vs Excluded Fundraising events; Advertising 10 Part IX Are fundraising expenses listed? Is Management reasonable? Expense percentages 11 Part X Related party receivables/payables Temporarily restricted net assets 12 Part XII Professional review; Accounting basis
Form Section Key Points Schedule A Public charity test. Is the public support okay? Schedule B Major contributors. Not public! Include pledges and non‐cash Schedule C Political prohited for c (3); Lobbying limited for c (3) Schedule D Dumping ground: Donor advised funds, easements, endowments, audit reconciliation Schedule E
Schedule F Foreign over $10k. If Grants: Part II or Part III. Consider Form 926. Schedule G The 3 G's of Schedule G: Go‐Getters, Good Times and Gambling Schedule I What's a grant? Report if total greater than 5k Schedule J Executive Compensation. Creates rebuttable presumption. Be care of Questions 5 ‐ 6 Schedule K Tax Exempt Bonds Schedule L Interested Persons & Reportable Transactions: Excess benefits, loans, grants & business transactions Schedule M Non‐Cash Goods, including stock > $25k. Schedule R Related groups. Know what activity is reportable by section. Schedule O Overflow: The words to go with the brief spaces in the form. 990‐T The tax form. Reports Unrelated Business Income (UBI)
http://info.knowledgeleader.com/bid/161685/what-are-the-five-components-of-the-coso-framework
http://www.acfe.com/rttn2016/docs/2016-report-to-the-nations.pdf
http://www.blueavocado.org/content/five-internal-controls-very-small-nonprofit
https://www.irs.gov/charities-non-profits/common-errors-made-by-exempt-organizations-filing-tips-for- form-990-pf