Tax Deductions for the Self-Employed
If you are a sole proprietor or receive a 1099 for contract work then you will want to consider tax deductions attributable to the income earned in the profit motivated activity. To be deductible the business expense must be reasonable and ordinary. Expenses that are common to the industry and appropriate for the activity. Common […]
Should I be paying estimated taxes
Estimated tax is the way you pay the IRS and the State income tax on the income you earn throughout the tax year. It is the amount of tax you are responsible for paying. It is important to pay the estimated tax evenly throughout the year rather than waiting to April 15 in order to […]
FQHC 330 Grant Management
HRSA is the largest funding source for most federally qualified heath centers and rural health centers. Since COVID funding has substantially increased the reporting requirements it is a good time to review some basic FQHC 330 grant management requirements. For proper FQHC 330 grant management, the health center’s financial management system is required to account […]
Nonprofit Operating Reserves
The operating reserve is cash to be used in the organization. It is part of an overall cash flow plan. Reserves can be for a specific purpose; such as, fixed asset purchase or program expansion. General operating reserves are for use in the day to day operations to bridge budget shortfalls. Expert advice is to […]
How much does a nonprofit audit cost?
Audits are expensive. They are the highest level of assurance; therefore, require the most work. The fee quoted will depend on several factors: How many different sources of funding does the organization have? 1. Multiple grants 2. Program revenue 3. Fundraising activities • How complicated is the balance sheet? 1. Number of mortgages or loans […]
Nonprofit Statement of Functional Expenses Allocation Methods
If you are a nonprofit organization in North Carolina you may be required to prepare a statement of functional expenses. The statement of functional expenses is not required for every non-profit organization; however, it is commonly included in the financial statements. Only voluntary health and welfare organizations are required to include a statement of functional […]
Accounting for Non-Cash Contributions
Contributions can be made to a nonprofit in either cash or property. Non-cash contributions can be tangible or intangible. Tangible property could be vehicle donations, household items, land and buildings, etc. Intangible property could be stocks, bonds, copyrights, leased space, etc. Like cash, these items are recorded as contribution revenue when received. The amount and […]
Volunteers and Financial Reporting Requirements
Volunteers are an integral part of many nonprofit organizations. Some organizations depend on their very survival by incorporating volunteers. Since volunteers are non-paid staff, does your organization consider including in the financial statements the value of their contribution? As a nonprofit auditor, I have guidance to follow on recording the value of services performed by […]
Audit Preparation: Preparing the Schedule of Expenditures of Federal Awards (SEFA)
All nonprofit organizations that expend $750,000 and more are required to have a single audit under the Uniform Guidance One of the required statements included as part of a single audit is the Schedule of Expenditures of Federal Awards (SEFA). The SEFA is a required as part of the supplemental data presented with the A-133 […]
Subrecipient Responsibilities for Grant Revenue pass-through
A subrecipient is an organization that receives federal awards from a pass-through entity rather than directly from the federal grantor to carry out a program. An organization may receive grant funds directly from one or more federal agencies and at the same time receive funds indirectly as a subrecipient. The subrecipient is responsible for managing […]
