GEORGE JOHNSON & COMPANY
Dear Clients and Friends,
Many nonprofit organizations receive grants and contracts from federal, state and local governments and other funding sources such as foundations. The most recent BDO Nonprofit Benchmarking Survey reveals that 45 percent of organizations say the time and effort required to deal with regulatory and legislative changes pose a moderate- or high-level challenge.
Key financial players such as CFOs and Controllers are facing a fast-approaching deadline to implement new revenue recognition requirements (Topic 606). The revenue standard aims to improve accounting for contracts with customers, but it also introduces a layer of complexity and challenge to nonprofits of every size. Contributions, defined as an unconditional transfer of cash or assets in a voluntary non-reciprocal transfer, are scoped out of revenue recognition. Exchange transactions-a reciprocal transaction in which two parties exchange something of commensurate value-are within the scope and need to be accounted for following the new revenue recognition requirements.
We’ve got that… don’t we?
Guide to Implementing a Holistic Privacy Program
Earlier this year companies like Facebook have come under fire for privacy violations while Congress is looking for ways to protect the privacy of American citizens. These movements are just the beginning of widespread change that we expect for privacy laws over the next several years.
Incorporate all your state audit committee requirements into the charter
Minutes of meetings
The authority to independently consult with and retain outside legal counsel
Join us in congratulating Michael Nicholas and Gloria Zhao on their tenure with GJC!
We are happy to share that our Quality Control Principal, Michael Nicholas is celebrating 32 years of service with George Johnson & Company. He joined GJC in 1986 and has been a Principal since 1994. Aside from being responsible for managing all facets of audits, reviews, other attestation engagements, and tax return preparation services for our clients, Mike also maintains our quality control standards. We are fortunate to have him on our team!
Luanne MacNichol – Director, Employee Benefit Plan Audit Practice, BDO USA LLP
Kim Flett – Compensation & Benefits Services Managing Director, BDO USA LLP
Lee Klumpp – National Assurance Partner, Nonprofit & Government Industries, BDO USA LLP
The Nonprofit Organizations & Foundations Seminar was later held on May 22nd. Our keynote speaker was the highly accredited Lee Klumpp, National Assurance Partner – Nonprofit & Government for BDO, out of the Washington, D.C. office. Lee discussed the latest trends and topics including tax reform and current accounting developments affecting the nonprofit industry.
With various changes occurring in the industry, we modified the format of the seminar by supplementing with two additional guest speakers. Following Lee’s presentation, Attorney Jeremy Cnudde, from KempKlein, spoke about Mergers & Acquisitions and Creating Value for Nonprofits. John Caldwell, Investment Specialist and Executive Director of J.P. Morgan Private Bank, discussed Key Principles of Effective Governance & Investment Management and Investment Policy Statements for the Current Environment.
Jeremy Cnudde – Attorney/Shareholder, KempKlein Law Firm
Based on the seminar feedback, we are pleased to announce that the attendees were overall satisfied with the new format! Stay tuned for future seminars!