2013-05-09 nonprofit financial management & accounting systems
DESCRIPTION
Raffa understands the challenges that Nonprofits, NGO's, and Associations face when it comes to providing grant tracking to funders and managers, managing multiple locations, and generating critical government financial reports. Sucessful management of a Nonprofit organization requires providing high-quality service, but at the same time, careful administration of expenses and improving processes are ongoing requirements. Spend more time securing grants and performing effective financial management with the right accounting system in place.TRANSCRIPT
Thrive. Grow. Achieve.
NonProfit Financial Management & Accounting
Systems Seminar
Seth Zarny – Partner Buu-Linh Tran – Senior Manager Troy Minor – Senior Consultant Jeremy Taro – Business Development
Date: May 9, 2013
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)
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CHALLENGES - GRANTS
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
Page 3
CHALLENGES – FIELD OFFICE
PEOPLE (PRIORITIES/CULTURE/AUTHORITIES)
TECHNICAL CHALLENGES
DIFFERENT PROCESSES
MULTICURRENCY
DIFFERENT 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
Page 4
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
Page 5
TRACKING NON-FINANCIAL DATA
INTACCT PROJECT ACCOUNTING/ USER DEFINED FIELDS
MICROSOFT DYNAMICS GP GRANTS MANAGEMENT/EXTENDER
MICROSOFT DYNAMICS SL – PROJECT/GRANTS – ALLOCATIONS, MODIFIER
SHAREPOINT
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
DYNAMICS SL
• Project Accounting Series • Cost Allocations • Project, Tasks, Account Category • Indirect & Direct Rates, Provisional/Actual
Page 7
SOLUTION – TRACK FINANCIAL DATA IN MS DYNAMICS GP, SL, & INTACCT
Features Chart of Account
Analytical Accounting
SL/Olympic Intacct
1.Track grant transactions X X X X
2. Track grant budgets for fiscal and grant period
X X X X
3. Prevent or provide warning when expenditure exceed grant revenue
X X (SL)
4. Track employee time against grant
X X (Only w/ Project)
5. Track employee expense against grant (web-based application)
X X (only w/ Project)
6. Bill against the grant X X X X (only w/ Project)
7. Management Reporter (FRx)/ Financial Reports by Project
X X X
8. Smartlist X X X
9. SSRS/ Custom report X X X X
10. Cost Allocations Moderate Moderate Extensive 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/ Dynamics SL
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 SUGGESTIONS
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)
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 GP & SL – Leverages document management system integration Intacct - Document imaging is part of core product
Page 10
FEDERAL REPORTING REQUIREMENTS
LEVERAGE MANAGEMENT REPORTER (MR) OR SQL REPORTING SERVICES (SSRS)
FORM 990
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA)
FASB 117
Page 11
FORM 990
Page 12
Page 13
FORM 990 – MANAGEMENT REPORTER
SEFA
Page 14
Page 15
SEFA – MANAGEMENT REPORTER
FASB 117
Page 16
NONPROFITS USING INTACCT
Page 17
NONPROFITS USING MICROSOFT DYNAMICS GP & SL
Page 18
GRANTS MANAGEMENT
DEMO INTACCT
• Dimension • Project
MICROSOFT DYNAMICS GP
• Grants Management • Analytical Accounting • Olympic
Page 19
Q & A
Page 20
Page 21
THANK YOU!
Seth Zarny Direct: 301-279-6500 E-mail: [email protected] Buu-Linh Tran Direct: 301-279-6511 E-mail: [email protected] Troy Minor Direct: 301-279-6507 E-mail: [email protected] Jeremy Taro Direct: 301-279-6504 E-mail: [email protected]