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Thrive. Grow. Achieve.
NonProfit Financial Management & Accounting
Systems Seminar
Seth Zarny – PartnerBuu-Linh Tran – Senior ManagerJeremy Taro – Business Development
October 1, 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)
Page 2
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
Page 6
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
Page 8
PROS AND CONS
Solutions Pros Cons
Chart of Account
Easy to maintain (Accounting dept control over COA)No sub-ledger to manageEasy to create report using MRCan slice and dice segment for reportingWork with MR/ existing report writer
Long COANot accommodate multiple year (grant yr vs. fiscal yr)Maintain old accounts foreverData entryUnable to handle complex grant requirement (time entry, complex allocation, etc.)
Analytical Accounting
Shorten COA Prevent charging expenditure in excess of revenueWork with MR/ existing report writer
Maintain sub-ledger / resourceSeparate screen for data entryRequire reconciliationAdditional trainingAdditional configuration/setup
Olympic Project Accounting/Dynamics SL
Shorten COA Track employee time and expense against grantAllows for sophisticated allocationAllows for sophisticated billingSophisticated Costing – Direct/Indirect Rates
Maintain sub-ledger / resourceSeparate screen for data entryAdditional trainingAdditional configuration/setupHas separate reporting function
Intacct Project Accounting
Shorten COA Track employee time and expense against grant
Maintain sub-ledger / resourceRequire reconciliationAdditional trainingAdditional configuration/setup
Page 9
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
Page 19
QUESTIONS
Page 20
Page 21
THANK YOU!
Seth ZarnyDirect: 301-279-6500E-mail: [email protected]
Buu-Linh TranDirect: 301-279-6511E-mail: [email protected]
Jeremy TaroDirect: 301-279-6504E-mail: [email protected]
