September 28, 2010, 9:00 am
Having the door wide open is one way to describe the concept of opportunity to commit fraud – there is nothing stopping you from getting your hands on the money and getting it out of the organization.
How does a person realize there is opportunity to do something wrong? Read the rest of this entry »
September 28, 2010, 8:36 am
(See this post for update - legislation repealed!)
Reporting requirements for 1099s will soon expand dramatically. From the Journal of Accountancy: “(b)eginning Jan. 1, 2012, virtually all payments by a trade or business aggregating $600 or more to any single vendor during any calendar year will have to be reported at the end of each calendar year to the vendor and to the IRS on Form 1099. Vendors include almost anyone a trade or business pays in the course of doing business, other than its employees whose compensation is already reported on Forms W-2.” – the full article is available online. Read the rest of this entry »
September 27, 2010, 7:17 am
The accounting rule makers (that would be the FASB) have proposed massive changes to lease accounting. Essentially, all leases with a term over 12 months will be recorded as an asset with an offsetting liability for the lease payments.
This is a casual summary (well, as casual as I can get when discussing accounting). A separate post at my other blog, www.attestationupdate.com goes into more technical details.
A very rough analogy is that all leases in the future will be treated in somewhat the same way as a capital lease is handled today. Read the rest of this entry »
September 26, 2010, 1:43 pm
Opportunity is the first side of the fraud triangle we will discuss. This is when there is a situation that would allow a person to do something wrong. These are the weaknesses and procedures to correct them that we usually talk about. Places where someone could get their hands on money and get it out the door. Read the rest of this entry »
September 25, 2010, 9:21 pm
This will be the first in a series of on what accountants call the fraud triangle.
Just a few comments before we begin. These posts will be written in a more casual style that you would usually see from an accountant. They will definitely be more casual than you have seen in my published resources, which you can find here. Read the rest of this entry »
September 23, 2010, 8:56 am
Cross-Cultural Partnerships – Mary T. Lederleitner – ISBN 978-0-8308-3747-2
From the back cover: “Nothing derails global partnerships more quickly than cultural misunderstandings about finances. North Americans don’t understand culture expectations of patronage, and Western money often comes with subtle strings attached. So local mission work is hampered by perceived paternalism, and donors are frustrated with lack of results or accountability. How do we build financial partnerships for effective mission without fostering neo-colonialism? Read the rest of this entry »
September 22, 2010, 2:19 pm
Following is from an IRS press release on September 22: “A few years ago, Congress passed a law requiring all tax-exempt organizations, even the smallest ones, to file an annual return with the Internal Revenue Service. Any organization that does not file for three consecutive years automatically loses its federal tax exemption. Churches and some church-related organizations are among the few exceptions.
“The first three-year deadline for filing those returns was May 17, 2010. While thousands of organizations did file, a significant number did not. Read the rest of this entry »
September 21, 2010, 8:14 am
September 20, 2010, 8:39 pm
Fair value disclosures will increase for December 2010 financial statements. Accounting Standards Update 2010-06, Fair Value Measurements and Disclosures (Topic 820) will require a few new items. The two main items I see for small and medium-sized NPOs are first, disclosing transfers in & out of Level 1 & 2, and second, disaggregation of fair value disclosures. Read the rest of this entry »
September 20, 2010, 6:01 pm
The people who make the official call for the start and end point of recessions, which is the National Bureau of Economic Research, announced on September 20 that the recession officially hit bottom in June 2009. We need to look at what that actually means. The bottom point of the economic cycle is considered the end of a recession. The Bureau calculated the low point, or the trough, was in June last year. Since then the economy has been recovering, although slowly. Read the rest of this entry »
September 16, 2010, 8:23 am
If you are so interested, lots of economic data is available from the federal government on-line. Two items of interest to me are unemployment data and GDP changes. Those are fairly major pieces of the economic picture.
Unemployment data: Alternative measures of labor utilization – table A-15 from the Bureau of Labor Statistics
Of particular interest are U-3 and U-6. The most quoted information is the U-3 measure, which is a calculation of unemployed people as percent of the civilian labor force. This is the official number you hear about. The broader data is the U-6 measure. That is based on the total number unemployed plus people only able to work part-time, plus people who want to work but have dropped out of the market. Or at least that is my casual interpretation of the data.
Changes in GDP: Percent change from preceding period in real Gross Domestic Product – table 1.1.1 from the Bureau of Economic Analysis.
There are several frequently requested tables from the BEA.