2015-02-12 Best in Class Nonprofit Accounting Systems
1. Thrive. Grow. Achieve.
NonProfit Financial
Management & Accounting
Systems Seminar
Seth Zarny – Partner
Buu-Linh Tran – Senior Manager
Jeremy Taro – Business Development
February 12, 2015
2. Page 2
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)
3. Page 3
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
4. Page 4
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
5. Page 5
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
6. Page 6
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
7. Page 7
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
8. Page 8
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
9. Page 9
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
10. Page 10
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
11. Page 11
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
12. Page 12
FEDERAL REPORTING REQUIREMENTS
Leverage Management Reporter (MR) or SQL Reporting Services
(SSRS)
Form 990
Schedule of Expenditures of Federal Awards (SEFA)
FASB 117