Nonprofit Management – Forming An Audit Committee – Why, When And Who
Posted by admin in Audit Financial on September 4, 2011
Financial audits can be a considerable expense for a charitable organization and boards need to consider this process well in advance of when they will need to have their financial records audited. Most nonprofit boards have finance committees, but how do they know when they need an audit committee? The easy way to answer this question is to check State regulations to determine whether or not the nonprofit is required to have an independent audit. If the answer is yes, then I strongly advise the organization to consider forming an audit committee. Among other responsibilities, the audit committee is the link between the nonprofit board and the independent auditor.
What are State thresholds for having an independent audit? Unfortunately there are no consistent requirements. New York for example, requires nonprofits to have an independent audit when annual revenue exceeds $150,000. California, on the other hand, requires an independent audit when annual gross revenue exceeds $2 million. That’s a big difference and something that regulators need to agree and standardize.
Financial Accountability For Grant Seeking Ministries – What it is and Why You Need It
Posted by admin in Audit Financial on September 4, 2011
As solicitors of public funds that are supposed to be used to accomplish great things in the community and the world, nonprofits must show they use donated funds for the purposes intended. They also need to show the sources of their funding and what portion goes directly to their mission versus toward administrative or fundraising expenses. Financial audits are one solid way to reassure the public and funding sources that you are financially accountable and responsible.
Nonprofits are not legally bound to conduct audits. But in the interests of transparency and accountability and your ministry’s long-term benefit, your bylaws should mandate them on an annual basis. The Evangelical Council on Financial Accountability (ECFA) requires its members to submit to an annual audit by an independent auditing firm, one that follows generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAPP).
MFC Global Investment Management
Posted by admin in Audit Financial on September 4, 2011
The world of wealth building and wealth management is a puzzle made up of many pieces where each pieces requires the other pieces in order for them to have meaning. First there is the investor. Who is this person? It might be the employees of the growth companies that created the jobs or it might be their employers. Whatever market they all exist in and whatever products or services they work in they still must have a strategy for growth. All grow begins in an incubator environment. Then as they expand jobs are created and finally profit is made. This profit of course will eventually need to be invested. That is where asset management comes in.
One of the larger asset management companies is MFC Global Investment Management®. MFC Global Investment Management®. is the asset management division of Manulife Financial. MFC Global Investment Management’s diversified group of companies.
Choosing an Auditor
Posted by admin in Audit Financial on September 4, 2011
There are a several factors that should be considered when choosing an auditor. I have grouped these under three broad headings: Capability, Strategy and Cost.
Capability
Size of audit firm: Larger audit firms are often able to offer greater depth of experience and a larger pool of resources to draw upon, but that may come at a higher price than a smaller firm.
Related experience: you will likely want to know that the audit firm has experience working with clients in your sector. For example, if you are a not-for-profit organization then you may want to ensure that the assigned audit team has conducted audits of NPO clients that are similar to you.