Archive for July 2014
How to Account for Website Development – Part 1
Websites are a necessity for nonprofit organizations that want to compete for donor contributions in today’s social media based culture. In fact, websites are now considered the most basic form of providing a nonprofit’s mission and information to the public. Social media outlets such as Facebook, Twitter, and mobile applications (apps) are rapidly becoming the…
Read MoreAvoiding Management Letter Comments – Bank Reconciliations
Performing monthly bank reconciliations should be a standard practice for your organization. Occasionally, something goes wrong and a management letter comment is issued. Some of the most common comments relate to stale checks, incomplete outstanding check lists, deposits in transit that don’t clear in a timely manner and lack of approval of the reconciliation itself. Stale checks – Stale…
Read MoreCut-off issues and avoiding management letter comments
A common audit management letter comment given to organizations is due to cut-off issues. There are two types of cut-off issues, accounts payable/expenses and checks. Cut-off issues for accounts payable/expenses arise when an expense is booked in an incorrect period leaving the liability to be misstated. According to GAAP, expenses should be booked in the…
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