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)

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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

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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

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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

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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

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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 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

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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

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FEDERAL REPORTING REQUIREMENTS

LEVERAGE MANAGEMENT REPORTER (MR) OR SQL REPORTING SERVICES (SSRS)

FORM 990

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA)

FASB 117

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FORM 990

Page 12

Page 13

FORM 990 – MANAGEMENT REPORTER

SEFA

Page 14

Page 15

SEFA – MANAGEMENT REPORTER

FASB 117

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NONPROFITS USING INTACCT

Page 17

NONPROFITS USING MICROSOFT DYNAMICS GP & SL

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GRANTS MANAGEMENT

DEMO INTACCT

• Dimension• Project

MICROSOFT DYNAMICS GP

• Grants Management• Analytical Accounting

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QUESTIONS

Page 20

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THANK YOU!

Seth ZarnyDirect: 301-279-6500E-mail: szarny@raffa.com

Buu-Linh TranDirect: 301-279-6511E-mail: btran@raffa.com

Jeremy TaroDirect: 301-279-6504E-mail: jtaro@raffa.com