Every day we hear questions and concerns from people in the nonprofit community about financial reporting. Some common questions are: Do all nonprofits need to have an independent audit performed on their financial statements? Are there any more affordable methods of evaluating a nonprofits’ financial position, rather than an independent audit? Is there any reason Read More…

The primary defense against fraud is a robust series of internal controls. Internal controls can be defined as a series of activities whereby employees in the normal course of their duties identify errors or irregularities that may occur. As a practical matter internal control procedures add a level of bureaucracy to the activities of an Read More…

Maintaining strong internal controls over an organization’s cash and bank accounts is critical. A key control in this area is to segregate the duties of the accounting staff. Unfortunately, in today’s economic environment nonprofit organizations often find themselves understaffed in many key areas. One particular area that is often lacking in manpower is the accounting Read More…

Every day we hear questions, comments and misconceptions from people in the nonprofit community about their Form 990s, especially in light of the recent IRS news. Some common concerns are: Do all nonprofits need to file a Form 990? What is the filing deadline? Is the Form 990 an income tax return? Do all nonprofits Read More…

Operating a business without a valid buy-sell agreement is like driving a car without insurance. Buy-sell agreements provide much-needed protection when an owner involuntarily leaves – or voluntarily wants out of the business. A comprehensive agreement not only defines the term “value,” but it also incorporates buyout terms and includes provisions for various buy/sell scenarios Read More…

  One officer of a Company said, “If I had known he needed money, I would have loaned it to him”. Another asked, “How could this happen”? And yet another exclaimed, “We are ruined! We can’t make payroll!” All of these are reactions to the discovery of fraud in their Company. Hindsight will eventually bring Read More…

Attorneys and their clients sometimes ask professional valuators to provide preliminary estimates, called “calculations”, rather than full-fledged business appraisals, formerly known as a conclusion of value. While such requests might save money up front, a recent Iowa case, In re Marriage of Hagar, illustrates why calculations are not a substitute for valuations. Dry cleaners divorce Read More…

On July 31, 2013 you can expect the first of several fees that are enacted by the Affordable Care Act on self-insured group health plans and/or issuers of insured health policies providing accident and health coverage. The Affordable Care Act establishes the creation of the Patient-Centered Outcomes Research Institute to assist patients, clinicians, purchasers and Read More…