2015-02-12 best in class nonprofit accounting systems
TRANSCRIPT
Thrive. Grow. Achieve.
NonProfit Financial Management & Accounting Systems Seminar
Seth Zarny – Partner Buu-Linh Tran – Senior Manager Jeremy Taro – Business Development
February 12, 2015
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WHAT’S ON TAP
Introduction & Agenda Challenges (Grants Management) Grants Management solutions
Non-Financial Information Financial Information
FIELD OFFICE ACCOUNTING FEDERAL REPORTING DEMO (INTACCT & MICROSOFT DYNAMICS GP)
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LARGEST NON PROFIT NICHE FIRM • Serve thousands of nonprofit clients • 200+ nonprofit specialists on staff at all levels • Support over 200 Financial System Clients • Certified System Consultants, Certified Project
Management Professionals, Business Process Consultants
30 YEARS SERVING THE NON PROFIT COMMUNITY 17 PARTNERS, INCLUDING 10 WOMEN PARTNERS WOMEN-OWNED FIRM MULTI-CULTURAL WITH DIVERSITY AT ALL LEVELS BDO ALLIANCE USA INDEPENDENT MEMBER
Who We Are
Raffa is nationally recognized with access to all the resources of the largest international firms. Our mission is to advance the nonprofit sector and be a catalyst for positive, systemic change.
WIDE RANGE OF SERVICES • Technology Solutions
• ERP & Accounting Systems • Software Development • Managed IT Services
• Audit and Tax • Managed Accounting • HR Consulting • Business Advisory • Forensics and Litigation Support • Employee Benefit Plans • Search and Transition Services
NATIONALLY RECOGNIZED:
• Top 100 Largest Accounting Firms • Top 100 ERP VAR (Bob Scott & Accounting Today) • Top 100 and Fastest Growing Value Added Reseller
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GRANT CHALLENGES
Financial Reporting – maintaining grant reports/ donor reports Tracking grant dollars - maintaining large Chart of accounts Avoid over spending Grants – Tracking non financial information & managing grant
information
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CHALLENGES – FIELD OFFICE
People (Priorities/culture/authorities) Technical challenges Different Processes Multicurrency Disparate systems Locations Support/ Financial Reporting
Reporting to necessary stakeholders Board of directors, Donors, Executives, Program Managers,
Grants Managers, etc. Nonprofits must account for:
Funds, Grants, Projects, Programs, and More
Documentation
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CHALLENGES WITH FEDERAL REPORTING & COMPLIANCE
Identify tools to assist with federal reporting FAS 116 - Accounting for contributions FAS 117 - Financial statements for Nonprofit Organizations Segregation and auditing of uses and sources of funds 501(c)(3) charitable vs. non-exempt activities IRS Forms 990, etc
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TRACKING NON-FINANCIAL DATA
Intacct Project Accounting/ User Defined Fields Microsoft dynamics GP Grants Management & Extender Financial System(s)
Custom application/ Database
MS Excel / Word
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TRACKING FINANCIAL DATA
Intacct Dimensions Project Accounting Modules
Dynamics GP
Chart of account (COA) – Track grant activities through segment of COA Analytical Accounting (AA) – Dimensions Olympic – Use project to track grant transactions
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SOLUTION – TRACK FINANCIAL DATA IN DYNAMICS GP & INTACCT
Features Chart of Account Analytical Accounting
Intacct
1.Track grant transactions X X X
2. Track grant budgets for fiscal and grant period
X X X
3. Prevent or provide warning when expenditure exceed grant revenue
X
4. Track employee time against grant X (Only w/ Project)
5. Track employee expense against grant (web-based application)
X (only w/ Project)
6. Bill against the grant X X X (only w/ Project)
7. Management Reporter (FRx)/ Financial Reports by Project
X X X
8. Smartlist X X
9. SSRS/ Custom report X X X
10. Cost Allocations Moderate Moderate Moderate
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PROS AND CONS
Solutions Pros Cons
Chart of Account
Easy to maintain (Accounting dept control over COA) No sub-ledger to manage Easy to create report using MR Can slice and dice segment for reporting Work with MR/ existing report writer
Long COA Not accommodate multiple year (grant yr vs. fiscal yr) Maintain old accounts forever Data entry Unable to handle complex grant requirement (time entry, complex allocation, etc.)
Analytical Accounting
Shorten COA Prevent charging expenditure in excess of revenue Work with MR/ existing report writer
Maintain sub-ledger / resource Separate screen for data entry Require reconciliation Additional training Additional configuration/setup
Olympic Project Accounting
Shorten COA Track employee time and expense against grant Allows for sophisticated allocation Allows for sophisticated billing Sophisticated Costing – Direct/Indirect Rates
Maintain sub-ledger / resource Separate screen for data entry Additional training Additional configuration/setup Has separate reporting function
Intacct Project Accounting
Shorten COA Track employee time and expense against grant
Maintain sub-ledger / resource Require reconciliation Additional training Additional configuration/setup
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FIELD OFFICE ACCOUNTING
Challenges Suggestions
People • Establish and document field office accounting processes • Provide onsite training (processes/ system) • Provide training @ home office (annually) • Keep it simple (process/ accounting/ technology) - KISS
Technology • Excel • Remote access to GP & SL • Other system (QB) • Maintenance factor/ Lag time • User’s background • Leverage on GP & SL MC
Financial Report • Report in local currencies (MR, SSRS) • Easy access to reports
Documentation • Dynamics GP – Leverages 3rd party document management system integration • Intacct - Document imaging is part of core product
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FEDERAL REPORTING REQUIREMENTS
Leverage Management Reporter (MR) or SQL Reporting Services (SSRS)
Form 990
Schedule of Expenditures of Federal Awards (SEFA)
FASB 117
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FORM 990
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FORM 990 – MANAGEMENT REPORTER
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SEFA
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SEFA – MANAGEMENT REPORTER
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FASB 117
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NONPROFITS USING INTACCT
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NONPROFITS USING MICROSOFT DYNAMICS
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SOFTWARE PRESENTATION
Intacct Dimension Project
Microsoft Dynamics GP
Grants Management Analytical Accounting
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QUESTIONS
Helping Great Organizations Thrive
Seth Zarny Direct: 301-279-6500 E-mail: [email protected] Buu-Linh Tran Direct: 301-279-6511 E-mail: [email protected] Jeremy Taro Direct: 301-279-6504 E-mail: [email protected]
Thank you