Category

Accounting

Jan 23
0

How Severe Weather Relates to Fraud

By | Accounting, Fraud, Nonprofit | No Comments

Severe weather alerts are loud, obnoxious and clearly intended to get our attention. They come in the form of ear-piercing beeps on the TV screen interrupting regular programming to display radars and “watch” and “warning” areas where people need to remain alert. Or, even scarier, they’re blaring beeps on the radio that overtake the station telling us to take shelter. These alerts serve a purpose, and for years they triggered my wildest fear.

Suppose as a child you hated “bad” weather; didn’t like dark clouds, heavy winds, or the clap of thunder, and hid under your covers until the storms passed. As an adult,, when you  had lived through enough crazy weather, you realized you could listen to warnings and take action to keep yourself and others safe in the event of an approaching severe storm.

How helpful would it be to have these types of alerts for the real life “bad” – might I say “severe” – things that happen in our workplaces? For example, the perfect storm for fraud (pretty much the worst of the “bad” things that can happen) may very possibly be brewing right this minute in our workplaces. Just imagine if a jarring bell sounded when there was some warning sign that a volunteer was feeling mounting financial pressures at home, or a fictitious vendor was making her way through your financial system, or a hacker was perusing your donor data.

We don’t have these audible warnings. Instead we, as employees, managers, and board members, often find out too late, when the money or information is already gone, or when we’re left trying to make sense of how someone we trusted perpetrated fraud.

The “ASAP” Call

As a consultant, I oftentimes get calls from board members who says they need help ASAP,:i.e.,, “We found out something unbelievably bad happened, here’s what we’ve done so far,, so, now, what should we do?”

These calls are hard to receive, and even harder to make for those dedicated employees serving mission-driven nonprofit organizations. The management team or board members are giving their time, talent, and treasures to organizations with a mission, about which they’re passionate. They have trust in their co-workers and vendors and don’t want to believe, or even plan for, bad things happening. And, fraud – an intentional diversion of funds from the mission, perpetrated by someone inside or outside the organization – is oftentimes the furthest thing from their mind. So, when fraud strikes, panic often ensues.

How to Prepare

The only way to respond efficiently  to something unexpected is to institute prevention measures to avoid these pitfalls and be prepared with a plan of action, which you formulated in advance, rather than reacting emotionally to an emergency situation. I’ve narrowed down the top three things I think we can learn from those weather alerts when it comes to fraud preparedness:

  • Fraud Awareness is key. Just like meteorologists look at models, forecasts, and radars, nonprofit management and board members should always have their radars up and remain alert. It is essential to understand the pressures, incentives, and opportunities real-life humans face that might lead them to do things you’d never think they could do. And, you can’t raise awareness without open lines of communication.
  • Fraud is not a forbidden four letter word. What I mean here, is talk about fraud. Use the word in meetings, talk about how it’s showing up in the news, and how others are dealing with it. Make it part of your organization’s dialogue. We might not want to talk about hurricanes, tornadoes, or flash floods, but they are real and by talking about fraud and how to prepare and plan for survival, everyone knows the organization is on the alert for fraud, the fear of talking about fraud is reduced and the power of a well-laid plan takes over.
  • Create and practice a fraud drill. If we know and practice tornado drills, why wouldn’t we have a plan in place that we practiced in the event of fraud? Crisis management, including disaster recovery, should encompass who, what, when, where, and how to deal with this situation. Create a plan, share your plan, and even practice it to create comfort in the process and find ways to improve it.

We all will continue to wish for blue skies and sunny days, just like we hope that fraud doesn’t hit us and our organization. But, the reality is that none of us have that control. So, instead, I strongly encourage you to act by raising your own awareness, opening dialogue, and creating and practicing what you’d do if fraud ever struck your organization.

At Welter Consulting we are committed to finding you the most affordable technology, the most powerful solution, and providing expert support. Welter Consulting partners with each nonprofit and is committed to providing solutions that preserve time and resources, by leveraging technology and superior reporting that allows organizations to focus on impacting their communities. We e passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others. Please give us a call at (206) 605-3113.

 

Jan 16
0

Getting Your Staff Ready for the Annual Audit

By | Accounting, Audit, CPA, Nonprofit | No Comments

As the manager of a nonprofit organization, you’re probably all-too familiar with the paperwork aspect of the annual nonprofit audit. Documents must be managed, maintained, and updated, and everything prepared for the auditors.

There’s a second part of managing the audit process that’s equally as important: managing the people who are part of the audit. To help you with this aspect of auditing, we’ve put together the following tips.

Schedules

  • Make sure you schedule the audit well in advance of any deadlines. Be sure to set aside enough time for your staff so that they can be available to assist the auditors in any way necessary.
  • Contact the auditing firm and confirm that the dates for the audit are available. Auditors’ schedules may be booked months in advance. Be sure to confirm again the week prior to the scheduled audit to ensure nothing has slipped through the cracks.
  • When scheduling your audit, offer three days and times that work for all. Allow the auditors to choose the one that works best for them.
  • Clear calendars to make sure no offsite or other meetings will interfere with the audit schedule.

Logistics

  • Provide a clean, private, well-lit workspace for the auditors to use while they are at your company.
  • Create the necessary computer and WIFI access in advance so it is ready for the auditors immediately.
  • Ensure that a telephone line is also available for the auditors.
  • If parking spaces are reserved at your building, make sure you take the necessary steps to secure parking spots for the auditors.
  • Provide them with directions on how to get to your building.

Communications

  • Inform the internal staff that an audit is taking place. Reassure them that it is both a necessary and beneficial aspect of nonprofit management – it’s not like a personal IRS audit, but more of a consultation to ensure that your nonprofit is operating correctly.
  • Make sure that staff understands they can’t use conference rooms or other workspaces that the auditors are using during the week.
  • Ask staff not to interrupt the auditors while they are working.

Following Up on the Audit

Once the audit is over, it will take your firm several weeks to prepare the materials and provide them to you. Take time to review them and discuss the findings with the auditors. The final report can then be presented to your Board of Directors.

As a final step, share the audit with your entire team. Although not required as part of a nonprofit audit, the more information that you can share with your staff, the better they will understand what’s going on within the organization as a whole. They’ll feel invested in the outcomes and better informed about the financial aspects of the organization. The more information they have, the better they can do their jobs.

Preparing for an audit can be stressful, but if you’re organized and take the appropriate steps, you can ensure that the entire audit process from start to finish goes smoothly. Both your auditors and your Board will thank you for the extra effort made to ensure a streamlined process.

Welter Consulting offers auditing as one of our core services for nonprofits. Our experience encompasses audits, consulting, software selection and more for the nonprofit industry. Please contact Welter Consulting at 206-605-3113 for an appointment.

Dec 23
0

How to Prove Abila MIP Fund Accounting is “Budget Worthy”

By | Abila, Accounting, MIP Fund Accounting, Nonprofit | No Comments

How to Prove Abila MIP Fund Accounting is “Budget Worthy”

Would you love to implement MIP Fund Accounting for your agency but you are concerned with getting a buy-in from executive leadership, your IT department and the board? These tips from The Center for Association Leadership can help you pitch and sell your nonprofit tech budget with minimal pain.

MIP Fund Accounting tends to be easier to advocate for than other types of software due to its’ efficiency and productivity. Of course, you’ll have to explain the needs to your board and others for funding, but let Abila and Welter Consulting help make the case to purchase MIP fund accounting by taking these two easy steps.

Step 1: Link It to Member Needs

The better you can build a case linking your technology purchase to member needs, the more likely you are to get the green light and the budget. The directors and supervisors at your organization are tasked with keeping members’ needs in mind at all times. That includes clients and constituents, or the people you serve. When you build a case linking technology budgets to solving problems for members and constituents, the directors will be more likely to approve it.

MIP Fund Accounting provides your organization with greater transparency and better accuracy when tracking expenses. Detailed reporting on every aspect of your organization’s finances will fulfill your members’ needs for accurate, timely information on how their funds are being managed and used to fulfill the organization’s mission.

Step 2: Set Mission-Critical Metrics

From the start of your tech budget request, communicate the specific metrics by which you will measure success. Specific metrics provide an objective benchmark by which to assess how well the new purchase has helped you achieve your goals. Whether it’s reducing costs by 5 percent or maximizing investments, you can show how your MIP fund accounting purchase will help achieve specific goals.

Presenting Your Case

Presenting your case for new technology purchases to members, the board of directors, or C-level executives can be challenging. Each stakeholder has different information needs; everyone looks at the ideas and information through the lens of their own self-interest. Executives want to be sure the purchase will help the organization grow. The board may wish to limit costs. Fellow members and coworkers may simply want to know what this new technology purchase will do for them.

To present your case, gather all your background data and facts and distill them into the simplest ideas possible. Don’t overwhelm your ideas with tons of facts, but present the most important items first, then build a supporting case. People’s attention spans are short, and you’ve only got seconds to get them on board.

Practicing your pitch beforehand often helps. If you’re on a team evaluating the purchase together, then ask team members to listen to your pitch and offer suggestions. The right MIP fund accounting software can make accounting tasks easier. It can also make your organization’s funds transparent and easy to understand for all. By approaching the request for funds in a logical fashion and using these steps, you stand a better chance of successfully acquiring the budget for your purchase.

Abila MIP Fund Accounting from Welter Consulting Welter Consulting offers Abila MIP Fund Accounting software to help nonprofits manage their accounting needs. Abila MIP Fund Accounting enables you to report and track the most important information for your board, your supervisors, and others eager to see how your nonprofit’s resources are being used. MIP fund accounting software is perfect for many nonprofits. At Welter Consulting we are committed to finding you the most affordable technology, the most powerful solution, and providing expert support. We are dedicated to assist you in achieving your mission by leveraging technology and superior reporting. We are passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others. Please give us a call at (206) 605-3113 or by visiting our website at Welter-consulting.com to see a complete listing of upcoming training and webinars, including the free NonProfit Enrichment Series, hosted by Welter Consulting, LLC or by clicking on the following link: NonProfit Enrichment Series Webinars.

Dec 12
0

New Methods to Obtain Professional Education Credits for CPAs

By | Accounting, Nonprofit | No Comments

CPAs now have two new ways in which they can obtain Continuing Professional Education (CPE) credits. The AICPA and the National Association of State Board of Accountancy recently changed the standards for CPE providers as well as NASBA’s Field of Study document. These new opportunities to earn continuing education credits seek to open more opportunities for CPAs to earn valuable continuing education credits so that they can better serve the organizations they work with.

Computer and Live Events: Blended and Nano Learning

The two new methods now accepted are blended learning and nano learning.

* Blended learning includes a combination of learning methods such as seat-based (classroom) sessions, self-study, and video lessons on demand.

* Nano learning consists of short 10-minute modules, usually focused on a specific task. This type of learning is often used to help CPAs acquire specific skills rather than master overarching concepts.

Not all states accept these methods, so you must check with your local branch of the AICPA and the NASBA to find out if your state accepts nano and blended learning.

Additional changes are also being made to the Fields of Study document. These changes update categories and descriptions so that they are both current and relevant. The biggest change occurs in the Specialized Knowledge field of study, which now separates computer science application and information technology into its own categories. Specialized knowledge topics can now be specific to industries or categories.

Continuing Education and the Nonprofit Sector

Nonprofit financial managers need excellent quantitative as well as qualitative skills to best serve their constituents. These skills including exceptional accounting and financial management, as well as good communication skills.

Specialized skills that nonprofit accountants may also need include:

* Presentation and public speaking skills: Nonprofit CPAs may be called upon to address board meetings, and conferences. These are valuable opportunities to educate the public as well as members and donors.

* Interpersonal communications: Communications inside your office as well as throughout your organization are essential to good management. Persuasion and articulation of thoughts, ideas and concepts is essential for department leadership.

* Social media skills: Social media may seem like an esoteric area for accountants, but even accountants and financial leaders use tools such as texting to reach colleagues with quick messages. Learning the proper methods of communicating via social media is now an essential skill for CPAs.

* Data visualization: Data visualization helps non-accountants understand the nuances of the materials you are presenting. Understanding how to share information via charts, graphs and other methods can help both colleagues and the public understand the nonprofit’s financials easily.

Online learning and the new blended and nano learning methods may provide you with opportunities to build these skills and more. Professional development is essential for CPAs.

Welter Consulting

Welter Consulting helps nonprofit organizations bridge the gap between people and technology. Software support, implementation and training, as well as audit support, are our main areas of service. If you would like assistance with your nonprofit accounting needs, please call us at 206-605-3113.