2012 nonprofit audit update

7/31/2019 2012 Nonprofit Audit Update

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January 13, 2012

A Look Back and Forward in the World

of Nonprofit Accounting

Jeffrey A. Stefan, CPA

Partner

(202) 419-5104

[email protected]


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Looking Back

Jimmy Carter was the first presidentborn in a hospital.

In 1918 a flu epidemic killed 548,000people in the U.S.

Gallaudet University began the

tradition of the football huddle in the1890s, in order to conceal their signed

plays from the opposing team.

Copyright 2012 Tate & Tryon CPAs and ConsultantsJanuary 13, 2012


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Looking Back at FASB

Created in 1973

117 standards in first 20 years (thru 1993)

6 new standards in the next 10 years

45 new standards (Jan 2005 June 2009)

January 13, 2012 Copyright 2012 Tate & Tryon CPAs and Consultants


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2011 Highlights

Supplementary and Other InformationRelated to Financial Statements

Service Organizations

Exposure Draft on Going Concern

Testing Goodwill for Impairment

Private Company GAAP



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IFRS

FASB and IASB signed a MoU in 2002

2006 MoU identified 11 convergence topics

Currently 4 priority projects

- Leasing is most relevant to NFPs

Accounting for Leases

- Initial exposure draft August 2010

- Decision to re-expose July 2011

- Effective date not likely prior to 2014



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IFRS - continued

Current status

- SEC statement / vote

- FASB chimes in



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FASB / NAC

Active Projects

- Nothing other than Leases affecting NFPs

- Mostly closing down the four IFRS projects

Long-term Research Project

- Consolidation

New Agenda Item- Not-for-Profit Financial Reporting



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NFP Reporting Key Recommendations

Revisiting current net asset classification, andhow they may be relabeled or redefined

Improving the statement of activities and cash

flows to more clearly communicate financialperformance

Creating a framework for a Management

Discussion and Analysis section of the financialstatements

Streamlining current NFP specific disclosurerequirements to improve relevance and clarity



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Speaker Biography

Jeffrey Stefan, CPA, is the partner in charge of Tate &Tryons auditing practice and has more than 25 years ofexperience serving the nonprofit sector. In addition to hisextensive audit and tax experience, he has providedconsulting services to organizations such as The World Bank,Public Company Accounting Oversight Board, and ASAE &The Center for Association Leadership in a variety of areas,

including grant compliance, merger due diligence, andinternal controls. He has also been called upon to consult on

a variety of complex issues such as fair value accounting (FAS 157), accounting foralternative investments (FAS 133), split interest agreements, endowmentaccounting (UPMIFA / FSP 117-1), single member limited liability corporations,uncertain tax positions (FIN 48), and interest rate swap agreements. Mr. Stefan has

presented and authored articles on many recent accounting and auditing issuesincluding : FASB Staff Position (FSP) FAS 117-1, Endowments of Not-for-ProfitOrganizations, Educating Your Board About Audits, Understanding Statement ofAuditing Standards (SAS) 103, Audit Documentation, SAS112, CommunicatingInternal Control Matters Identified in an Audit, and A Summary of the new AuditRisk Standards. Jeff is a member of the American Institute of CPAs (AICPA), theGreater Washington Society of CPAs (GWSCPA), and ASAE.


2012 nonprofit audit update

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