Category

MIP Fund Accounting

Could Your Data Be at Risk?

By | Abila, Accounting, Audit, CPA, Data, Grant Management, HR, MIP Fund Accounting, Nonprofit | No Comments

Could your nonprofit associations’ data be at risk? Even with good security, you may still find yourself in the unpleasant position of ransoming your data from an unscrupulous hacker.

New viruses such as the notorious “FBI” virus do not hijack your computer for their own nefarious purposes. Some viruses lock your computer down so that you cannot access any of its information. Instead, once you pay a fee – like a random in a kidnapping – the hijackers ‘release’ your computer.

If you think this can’t happen to you, think again. What used to be a threat to major targets such as large corporations or government organization is now a threat to anyone at any time. In fact, smaller nonprofits may be targeted more frequently than larger ones because small organizations do not have the means to fight back when they’re the victim of crime. Criminals such as data hijackers look for easy targets or organizations that do not have the financial resources to fight back. Any organization is at risk.

What Is Data Hijacking?

The best prevention against data hijacking is awareness. It’s important to understand what data hijacking looks like and how to prevent it from occurring.

Data hijacking occurs when a computer program called ‘malware’ enters your system. Malware means malicious software. A specific type of malware called “ransomware” enters your system through an infected email or computer virus. Most often, users inadvertently click an email link or download software containing the malicious program.

Ransomware installs on the end users’ computer and encrypts the data on the target computer so that it can no longer be read. The encryption is so sophisticated that only the operator of the program has the key that unlocks it. Hijackers demand payment for the data ‘key’ that un-encrypts or unlocks the data.

How Ransomware Gets Past Security

There are many ways in which data hijackers bypass your organization’s secure to target your computers. One common way is to clone an executive or CEO’s email address or LinkedIn profile. They then use the fake profile to send an email with a link to people in your company. They often target top executives but anyone can be targeted.

Once the link is clicked, it downloads the ransomware and locks the target computer. A message appears on the computer screen demanding payment to release the computer. Hijackers often request payment in bitcoin, an untraceable digital currency that’s easy to convert into cash.

Even after paying the ransom fee, there’s no guarantee your computer will be released. In some cases, the hijackers themselves are unable to decrypt the computers after payment is made to them. In other cases, the hijackers simply disappear with your money – and your data is lost forever.

Preventing Data Hijacking

The best way to combat data hijacking is through prevention. The following steps should be undertaken to protect against lost data from data hijacking:

1. Be vigilant when screening your emails. Do not click on links within emails unless your are absolutely certain it’s from a known sender. The same goes for attachments which can also harbor viruses and malware.

2. Keep your computer programs updated at all times. Patches and updates protect against various forms of malware, including ransomware.

3. Backup your data frequently. Store it on the cloud as well as in storage devices NOT connected to computers or the internet.

4. Use firewalls to segment company data. This way if part of your network is affected by ransomware, you may not lose all of it if some is protected behind a firewall.

5. Block pop ups and disable macros in key programs, which are often used to distribute malware.

If you suspect that your company’s cybersecurity has been breached and ransomware or malware has been launched, disconnect your computer from the internet as soon as possible. That may prevent the malware from downloading entirely or from infecting others.

Next, contact Welter Consulting. We can help you with both the immediate problem and creating a long-term strategy to protect against viruses, malware, and ransomware.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services to help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Blog #4

New Standards Mean Changes to Disclosures and Financial Statements

By | Abila, Accounting, Audit, CPA, FASB, Grant Management, MIP Fund Accounting, Nonprofit | No Comments

In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14. This document, entitled, “Presentation of Financial Statements for Not-for-Profit Entities” changed how information is presented in financial statements. The goal was to make information clear and easily understandable for the average person reading a nonprofit’s financial statements.

Areas that the new standards address include:

* Net asset restrictions: The previous categorization of net asset classifications confused many people, especially the term “unrestricted.” The new net asset restrictions bring the categories down from three to two to provide clarity.

* Liquidity: It was difficult under the old standard for people to see liquidity and compare liquidity amounts among various nonprofits.

* Cash flow: Previously, indirect reporting was required, but reviewers found that indirect reporting methods confused many people.

* Expenses: Not all nonprofits reported expenses the same way.

The Changes: Nothing New to Track, Simpler Reporting

The changes required by FASB for nonprofit accounting do not ask for any new information to be recorded or tracked. Instead, it simplifies the method of reporting and recording, streamlining it so that it is more consistent among nonprofits. This enables donors, members, and the public an easier way to compare nonprofit organizations and understand their finances.

The biggest changes are the net asset classifications, disclosure, and expense designation

1. Net asset classification: As previously stated, net asset classifications are changing from three previous potential classifications to two. The two new categories are net assets with donor restrictions and net assets without donor restrictions. Details about the categories are disclosed in the footnotes. The footnotes are expected to provide detail on the funds themselves and how they are apportioned.

2. Liquidity disclosure: On the liquidity disclosure, the new rules require that qualitative details communicate how the nonprofit manages the liquid resources available to meet its cash flow needs within a one year period. Quantitative information must also be provided about the resources available within one year. Additional information is required on the nature and type of liquid assets and any external limitations placed on them by grantors, donors, local laws, etc. Board limits must also be specified.

3. Expenses: Expenses must now be disclosed by natural and functional categories. The methods used to allocate costs must also be described.

The changes recommended by FASB aren’t a surprise, but are long in coming. The continual push to improve communications around financials for nonprofit entities is a welcome one that adds a layer of transparency to the nonprofit world that donors have been seeking.

If you’d like assistance meeting the new FASB requirements, speak with Welter Consulting today. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

The “Round Robin” Technique Breaks the Ice – Every Time

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

We’ve all been in that certain meeting…the one where deafening silence reigns.

“Any questions?” the chairperson asks brightly only to be met be deafening silence.

No matter how long you’ve been leading meetings, chairing committees, or heading up boards, there comes a time when even the most energetic and influential meeting leaders fails to elicit a response. It’s no reflection on your or on your leadership skills. It may simply be that the participants do not have anything to add or someone is too shy to speak up. Your job as the meeting leader is to break the ice and ensure that everyone who wishes to do so has the opportunity to speak.

Why Don’t People Speak Up?

You pride yourself on being an open, responsive, collaborative leader. Yet time after time, you put forward a motion, solicit feedback, and are meat with a deafening silence. You can practically hear crickets chirping two miles away in the silence of the meeting room.

People are often reluctant to speak up when faced with a controversial issue. Sometimes, people feel unprepared to add to the discussion. They may also defer to authority, feeling that if the meeting leaders suggest something it is the right course of action to take.

To help people feel more comfortable during meetings and speak up, you can:

* Circulate the meeting agenda ahead of time so that everyone can prepare their thoughts before an issue is on the table for discussion or vote;

* Delay your own response as the meeting leader until you hear from others at the table. This avoids the ‘nodding head’ syndrome or people agreeing with you just because you’re leading the meeting. Let others speak first and voice their thoughts.

* Ask people to form small groups of three and discuss the issue in small groups first.

* Suggest that participants write questions on slips of paper, which are then passed to someone designated to read them aloud for discussion.

Each of these methods offers a way to encourage and facilitate dialogue rather than to accept silence as the norm. If all else fails, and none of these suggestions work or feel right for your meeting, try the Round Robin technique.

The Round Robin Technique

This technique is simple, and guarantees that people participate. It is called the ‘round robin’ technique and like the name suggests, moves the conversation around the table to ensure that everyone has a voice in the discussion.

To utilize this technique, bring forward the salient points that are under discussion. Pose the question, but do not answer it yourself if you are leading the meeting. You will speak last to encourage others to share their thoughts.

Turn to the person to your left and ask them to share their thoughts. Then, when that person is finished speaking, ask the next person in turn at the table to go, and continue until everyone has had a chance to speak. When the group has had a chance to speak, the meeting leader can speak, going last.

If someone really doesn’t want to speak, they can say “Pass” and pass their turn. At the end, go back to anyone who has said “pass” and invite them once more to say a few words. They can either decline or speak. Some people may need a few minutes to gather their thoughts, and will have plenty to say when their turn comes around again.

Adding a Stopwatch and Timed Feedback

The Round Robin technique ensures that everyone can be heard and that everyone has a say on a controversial issue. If you can, bring a stopwatch into the meeting and offer each person exactly 30 seconds (or less) to speak. Give them a ‘warning sign’ of a wave or another signal to let them know their 30 seconds is up. Adding a stopwatch and timed feedback ensures fairness for all and is especially useful in meetings where one or two people tend to dominate the discussion. For more information about the Round Robin technique, visit our friends at Jacobson & Jarvis PLC.

It can be challenging to get people to speak up during a meeting. Techniques such as Round Robin and Round Robin with stopwatch are excellent ways to make sure that all voices are heard at your next board meeting.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Prioritizing Accounting for Nonprofits

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

With new laws and regulations passing each day, establishing priorities in an ever-changing world of accounting for nonprofits can be difficult. Keeping track of these changes, implementing new ideas, and managing daily tasks can all seem overwhelming. Due to increasingly demanding workloads of nonprofit staff, it’s easy to feel frustrated if you do not establish your priorities.

Making mindful choices can help you feel more in control of your work. Setting daily, weekly, and monthly priorities for yourself and your team can make accounting for nonprofits much easier and less stressful.

Accounting for Nonprofits: Three Tips to Ease Your Stress

 

  1. Establish your purpose: What is your group’s purpose or mission? When you clearly identify your organization’s vision and mission, you will find it easier to prioritize the essentials. Once you know your mission, all other activities can be organized in order of priority to support your mission. If something doesn’t actively support the organization’s mission or vision, it can be placed lower on the task list.

 

  1. Diversify income streams: Avoid relying upon a sole source of funding. If anything happens to that source, you’ll end up scrambling to find new income, which adds to your stress level. Grants end; donors can take their money elsewhere .Diversification of your income stream is as important as diversifying your investments. Diversification spreads out the potential risk if one stream dries up.

 

  1. Measure results: Measure the results of your work. Use both quantifiable means and quantitative means, such as case studies and success stories. Run data reports from your accounting and fund systems so that you can monitor campaign successes and progress towards goals. Learn how to read and use data derived from your systems to better manage your accounting.

 

Ask Questions to Set Goals

 

There are many questions you can ask to help prioritize around your organization’s mission. Train your team to ask these questions before taking on another project.

  • Are we doing this because we’ve always done it? It’s easy to get into a rut and continue activities simply because it’s what you’ve always done. Examine the success of each endeavor and don’t be afraid to shift priorities if something no longer works.

 

  • Are we clinging to “pet” projects?Just because something is a favorite of the director or the board, doesn’t mean it’s a good idea. It may take time to guide them away from their ‘pet’ projects, but if the data shows they aren’t profitable or useful, nor do they support the mission of the organization, then it’s time to rethink them.

 

  • Does this serve allconstituents? Every activity undertaken by your nonprofit must serve its constituents and fulfill your charter. It’s easy to let good ideas pull you in different directions, but in the end, this does not serve your best interests, nor the interests of your constituents. Always ask who the activity will serve and choose those that serve your constituents the best.

 

Accounting for nonprofits doesn’t have to be stressful. With the right focus, you can create clarity of purpose and peace of mind.

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. It’s a great MIP fund accounting software 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. Click here to see a complete listing of upcoming training and webinars, including the Free NonProfit Enrichment Series.