Financial Technologies & Management- E-Newsletter for August, 2021
Upcoming Live Webinars
We hope you find our monthly E-Newsletter useful for your nonprofit organization. We are pleased to provide you with access to our knowledge articles and live webinars!! We hope you find our changes helpful and useful for your organization and appreciate your feedback and support.
We know everyone is suffering from webinar fatigue from last year, but we feel it important to continue these webinars into 2021. We also plan to start making more recorded webinars available to you as well. We would encourage you to review our video resources from past nonprofit forums, mip user group meeting, and financial management training. Please click here to access our video resource library for recorded live webinars.
These live webinars will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, Finance Staff, and other Nonprofit Staff.
Our upcoming live webinars for financial management training are broken into the following areas. Please feel free to click on any of these areas to learn more and register for these upcoming financial management training.
- Financial Management Training-Topics include Overlooked Benefits of Outsourcing Nonprofit Accounting or Why your Nonprofit should be using Nonprofit Accounting Software?
- Nonprofit Forum and MIP User Group-We have placed these on hold for 2021 so we can take this time and reach out directly to you. However, our previous nonprofit forum and mip user group webinar are accessible from our video resources page.
- MIP Fund Accounting-General Ledger, Accounts Payable, Accounts Receivable, Reporting, Financial Statements, and Drillpoint-Each webinar is 2 hours.
- Nonprofit Finance Certificate-Effective Financial Management and Leadership-first day is focused on bookkeeping and accounting; and second day is focus on controller, CFO, and leadership roles.
- NFP CFO & Peer Group-FTM and Indiana CPA Society have partnered to facilitate this live event. The peer group determines those topics so please provide your feedback.
Please contact us if you have any questions or feedback about our upcoming live webinars.
Don't Let Internal Controls Slip at your Nonprofit Organization!!
Nonprofit organizations are more vulnerable than ever to fraud or errors in the organization’s financial statements. With employees, management, and board members focused on helping people in the communities the nonprofit serves, time and attention to key financial internal controls has more than likely been refocused to the organization’s mission and purpose.
However, these are times when internal controls are more important than ever to have in place and operating effectively. Fraudsters, scammers, and even an organization’s trusted employees—yes, it’s hard to imagine, but it happens!—are looking to take advantage of distracted organizations.
Here are a few key internal controls your nonprofit should have in place:
- Vendor approval controls
- Segregation of duties for cash receipts
- Expense and payment approval
- Payroll review and approval
- Bank Reconciliation Review
- Financial Report Review by board
- Information Technology Access/Cybersecurity education
- Executive Director expense review
The full article will discuss the most important internal controls.
Contact us to help you review and improve your internal controls to perform your fiduciary role correctly.
SBA streamlines forgiveness for smaller PPP loans of $150,000 or less
The Small Business Administration (SBA) has released new guidance intended to expedite the forgiveness process for certain borrowers under the Paycheck Protection Program (PPP). The simplified process generally is available for loans of $150,000 or less, which the SBA reports account for 93% of outstanding PPP loans.
The guidance comes at a time when many borrowers are nearing a critical deadline regarding their applications for forgiveness.
PPP loans generally are 100% forgivable if the borrower allocates at least 60% of the funds to payroll and eligible nonpayroll costs. However, if a borrower fails to apply for forgiveness within 10 months after the last day of the “covered period,” its PPP loan payments will no longer be deferred. Such loans will become standard loans, and borrowers will be
responsible for repaying the full amount plus 1% interest before the maturity date — unless the loan is subsequently forgiven. The 10-month period soon will expire for many so-called “first-draw” borrowers.
The SBA is providing a direct borrower forgiveness process for lenders that choose to opt in. At the time the guidance was released, more than 600 banks had opted in, enabling more than 2.17 million borrowers to apply through a new online portal scheduled to launch on August 4, 2021.
Contact us to help you obtain full loan forgiveness.
Public Support Test: 33.3% is the Magic Number and Here's Why
Whether your public charity is in the early years of formation or has operated for decades, there is one particular mathematical calculation that should always remain at the forefront of your decision making — the public support test. It is a small but mighty calculation that is vital to maintaining status as a public charity. On the Form 990, Schedule A is used to provide detail about sources of support, types of support and, ultimately, to calculate the public support percentage.
According to the IRS, there are two methods in which a non-profit may qualify as a publicly supported charity:
- Under IRC Section 509(a)(1): The organization is primarily supported by contributions from governmental units, publicly supported organizations, and/or the general public.
- Under IRC Section 509(a)(2): The organization receives no more than one-third of its support from gross investment income and more than one-third of its support from contributions, membership fees, and gross receipts from activities related to its exempt function.
The 509(a)(1) Public Support Test
Organizations claiming public charity status under this section must receive at least 33.3% of its support from the public, or from governmental units over a 5-year period — the current year plus the prior four years. At a high level, public support/total support = public support %.
The full article will show the calculation in detail.
MIP Fund Accounting-Free Assessments
Contact FTM to schedule your free assessments.
Financial Technologies & Management has served as your local trusted software advisor for the last 22 years. As a way of saying thank you for letting us provide you nonprofit accounting solutions, we wanted to offer you a free software assessment to help you make the following decisions.
- Module assessment and review-We will review your utilization of your MIP modules to help you determine how well your modules are utilized and help your determine any under utilized features and areas for improvement.
- Cloud assessment-We will be honest with you and let you if you would benefit from converting your on-premise license to the two MIP Cloud options.
- Training assessment. We will review your current team and let you know where you would benefit from our training and implementation services.
- Accounting department assessment. Our firm uses MIP on a daily basis so we can help you determine how MIP can help you meet your daily needs for accounting software. We will focus our assessment on your bookkeeping, accounting, controller, and CFO uses of the MIP software with recommendations for improvement.
The full article provides helpful links to our MIP monthly articles along with our contact information. We look forward to hearing from you.