Posts Tagged ‘lila casper’

Financial Reporting for Not-for-Profit Entities — A NEW STANDARD!

By Lila Casper, CPA
Senior, Audit & Assurance Services
lcasper@sponselcpagroup.com

ASU 2016-14 is a new Financial Reporting Standard affecting not-for-profit (“NFP”) entities, which is effective for fiscal years beginning after December 15, 2017. In the year of implementation, all prescribed provisions must be applied. Some of the primary changes in NFP financial reporting pertain to net asset presentation, a required liquidity and availability of resources disclosure, and expense reporting.

On the Statement of Financial Position, the minimum required presentation includes presenting net assets under the following two classifications: without donor restrictions and with donor restrictions. An allowable alternative presentation includes additional categories of net asset classifications, which are considered subsets of without donor restrictions and with donor restrictions, and they can include the following: undesignated, operating reserve, board-designated (for specific purpose), time restricted for future periods, purpose restricted, and endowment fund. NFP entities are also required to disclose the timing and nature of restrictions, the composition of net assets with donor restrictions, an analysis by time, purpose, and perpetual restrictions, and board designations.

Board-Designated Net Assets are defined as net assets without donor restrictions subject to self-imposed limits by action of the governing board. NFP entities are required to disclose the nature and amounts of board designations. Amounts may be earmarked for future programs, investment, contingencies, purchase or construction of fixed assets, or other uses. Organizations will need to review their existing policies regarding board designations.

In addition, NFP entities are required to provide qualitative information (in the footnotes to the Financial Statements) on how they manage their liquid available resources as well as their liquidity risk and quantitative information that communicates the availability of their financial assets at the Statement of Financial Position date to meet cash needs for general expenditures within one year. Also note that the availability of a financial asset may be affected by its nature, external limits imposed by donors, laws, and contracts or internal limits imposed by governing board decisions.

The schedule of functional expenses will no longer be an optional supplemental schedule. It is now a required part of the basic financial statements. The new standard also expanded on guidance for allocations of Management and General Expenses.

Sponsel CPA Group has expertise in not-for-profit financial reporting and can go over the new rules with you to find the best options for your organization. If you have any questions please contact Lila Casper at (317) 613-7860 or email lcapser@sponselcpagroup.com.

Are You Ready for Your Next Crisis?

By Lila Casper, CPA
Senior, Audit & Assurance Services
lcasper@sponselcpagroup.com 

As business slows down a bit this summer, now is an opportune time to focus on non-financial issues. Chief among them should be crisis management.

Even when business is booming, it’s important to prepare for the unexpected. As the old saying goes, “If you fail to plan, you plan to fail.”

Every company out there — big or small — should have a Disaster Recovery Plan in place with clear procedures to mitigate major disruptions to their business.

Examples of possible crises to consider include:

  • Natural or man-made disasters that damage or completely destroy the business building and its contents (including business records)
  • Cyber attack
  • Failure of IT technology and inadequate backup of stored data
  • Product recall
  • Employee misconduct
  • Loss of a key employee

During your down time this summer, you should collaborate with your staff in determining the risks you face and developing standard protocols to ensure that your business bounces back from these obstacles. You should not hesitate to bring in an outside risk management consultant. They will see the risks you miss on a day-to-day basis, and they can also share the horrible war stories of companies that incurred a loss and didn’t have a contingency plan to protect them. You should also conduct a review of your insurance coverage to minimize the financial loss exposure. The losses may be great but the physical and mental toll they take on the business owner and managers are much worse!

Here are some of the first steps you should take in the planning process:

  • Determine worst-case scenarios.
  • Calculate the likelihood of particular crises occurring. (This will help you prioritize and determine high and low-probability crises.)
  • Identify what is essential to day-to-day business operations and put systems in place that allow the company to continue running smoothly — such as a backup server for crucial data.
  • Compile contact information for those you would have to notify in the event of an emergency situation.
  • Assign crisis roles to particular departments or individual employees. (For example, you’ll need a spokesperson to gauge media interest and issue press statements in certain crisis situations that would likely garner attention from the public.)
  • Be ready for the worst. Having multiple backup plans is prudent.
  • Your plan should project how quickly you can be up and running, allowing you to recover from various disasters that could harm your livelihood.

In the business world, you should always hope for the best and prepare for the worst. It’s better to be safe than sorry. So, take some time this summer to make sure your business is as sturdy and resilient as it can possibly be.

If we can assist you with achieving success in your business or personal affairs, please contact Lila Casper at (317) 613-7840 or email lcasper@sponselcpagroup.com.

Employee Spotlight — Lila Casper

Lila CasperLila Casper joined Sponsel CPA Group one year ago after already having experience in public accounting. As a Staff Accountant in the Audit & Assurance Services department, her duties include conducting audits, reviews, compilations and agreed-upon procedures for clients across a broad spectrum of industries including construction, distribution, manufacturing, service and not-for-profit.

She is a CPA and a member of the Indiana CPA Society (INCPAS), as well as a member of the Fun Committee at Sponsel CPA Group. Lila earned her bachelor’s degree in business administration and master of accountancy degree from the University of Texas at San Antonio.

In her spare time, Lila volunteers with Second Helpings, serving on their Audit Committee, and is a member of the INCPAS Emerging Leaders Alliance. She loves spending time with her nieces and nephew, and rooting for the sports teams from towns where she’s previously lived: the Carolina Panthers, San Antonio Spurs and L.A. Dodgers. Lila also enjoys drawing, painting and putting together puzzles and Legos.

Board appointments for Sponsel team members

Jennifer McNettJosie DillonLila CasperSponsel CPA Group has always made civic involvement a cornerstone of our company culture. Many of our team members serve in a voluntary capacity with local nonprofit groups. We are pleased to recognize three new board appointments of our staff:

  • Lila Casper was appointed to  the Audit Committee for Second Helpings, which repurposes unused food for the hungry.
  • Josie Dillon was recently elected as Treasurer of the Center Grove Education Foundation, on whose board she also sits.
  • Jennifer McNett was elected Treasurer by her fellow board members of Dress for Success, which provides professional attire for those in need.

Thanks to all three for their service to the community!

Casper Named to Emerging Leaders Alliance

Lila CasperKudos to Lila Casper, a Staff accountant in Audit & Assurance Services, on being appointed to the Emerging Leaders Alliance within the Indiana CPA Society. Her term will start later this month. Aimed at up-and-coming leaders, ELA members serve as advocates for the CPA profession, as effective communicators to peers and as active volunteers in Society outreach.

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