The Challenge

A newly hired CEO wanted to begin with a clean slate, and wanted assurance that the organization had cost-effective internal controls, and that they were documented, communicated, and monitored. The organization had always received “clean” financial statement audits in the past, but the CEO was well aware that a clean audit does not necessarily mean that the internal controls were effective.

Approach

The organization decided to engage Tate & Tryon to perform an audit of its internal controls. Our approach took into consideration a changing internal control environment in which technology-based controls replace certain manual controls. More importantly, Tate & Tryon’s risk-based approach recognized that nonprofit organizations have controls at the senior management and board/committee level that may compensate for certain limitations in processes due to staffing limitations.

Results

Tate & Tryon’s unique understanding of nonprofits and their control environment facilitated a practical audit approach designed specifically to provide assurances on the organization’s internal controls while identifying risks and cost-efficiencies. A number of our recommendations resulted in improved internal controls that the organization was able to implement immediately at minimal cost. The organization now has a roadmap for continuous review and enhancement of the organization’s internal controls. The board—through the financial oversight committee—now has a clear understanding that one of its major responsibilities is the oversight of internal controls. Lastly, the audit process reinforced the organizational culture of accountability and transparency to the board and stakeholders.

INSIGHTS & RESOURCES

Tax-Exempt Organizations and 2017 Tax Reform

Posted on , updated on

Uncategorized11/23/2017

Dear Friends in the Tax-Exempt Community:
Below is a brief overview of the key tax reform proposals relating to tax-exempt organizations. As you know, Congress is currently putting together legislation to effect significant tax reform with a timeline of having it enacted this year. Although Congress is still negotiating, the following reform proposals may impact your […]

Royalty Income of Nonprofits is Being Targeted for Taxation!

Posted on , updated on

Uncategorized11/20/2017

The Senate Finance Committee’s version of the Tax Cuts and Jobs Act includes a number of items that would impact nonprofits.
Perhaps the most immediately significant is the provision that would call for taxing the revenue generated from royalties related to licensing a nonprofit’s name and/or logo. Royalty revenue has traditionally been exempt from income taxes. […]

How Could Federal Tax Reform Impact Nonprofits?

Posted on , updated on

Exempt Organization Tax11/17/2017

Uncategorized11/17/2017

By:  Doug Boedeker, CPA, Partner
It has been a challenge staying current on the twists and turns involved with the proposals for Federal Tax Reform. Many of the ideas within the tax reform package have a direct impact on nonprofit organizations.
Charitable deductions, executive compensation, employee fringe benefits, and intermediate sanctions are just some of the “hot […]

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