Reviews

Compilations

Internal Controls Assessments

IRS Form 990 Preparation and Review

Other Services

Audits

Audits provide the highest degree of assurance. The CPA expresses an opinion on the fairness of the financial statements’ presentation based on an examination of underlying evidence. Before issuing the report, the CPA performs a variety of audit procedures to gain confidence in the stated amounts. For example, in auditing the cash balance, the CPA will communicate directly with the bank to verify that the bank balance shown on a client’s bank reconciliation agrees with the bank’s own records.

Next Steps

What type of engagement should your organization consider? The answer depends on a number of factors such as your current financial resources, your plans for future growth, and your board’s comfort level with internally-prepared information. BearmanCPA will help you explore next steps in the assurance process. Please use our contact form or call us at 910.508.0630.

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Reviews

A review provides a significantly lower degree of assurance than an audit. The CPA performs analytical procedures to gain confidence in the financial statements. For example, a review of membership dues revenue might include recomputing the amount by multiplying the published membership rate by the total number of members on record. In addition, the CPA will spend time with management to discuss the results of the analytical procedures and inquire about any unusual items. In a review, the CPA will not express an opinion on the financial statements. Instead, the CPA will provide negative assurance, by stating that he or she is not aware of any modifications needed to conform the financial statements with generally accepted accounting principles.

Next Steps

What type of engagement should your organization consider? The answer depends on a number of factors such as your current financial resources, your plans for future growth, and your board’s comfort level with internally-prepared information. BearmanCPA will help you explore next steps in the assurance process. Please use our contact form or call us at 910.508.0630.

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Compilations

Compilations provide no assurance regarding the fairness of the financial statement presentation. Nevertheless, a compilation engagement allows the nonprofit to benefit from the CPA’s experience in accumulating data and presenting it in a standard, well-accepted format.

Next Steps

What type of engagement should your organization consider? The answer depends on a number of factors such as your current financial resources, your plans for future growth, and your board’s comfort level with internally-prepared information. BearmanCPA will help you explore next steps in the assurance process. Please use our contact form or call us at 910.508.0630.

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Internal Controls Assessments

On May 26, 2006, the American Institute of Certified Public Accountants (AICPA) issued Statement on Auditing Standards (SAS) No. 112, Communicating Internal Control Related Matters Identified in an Audit. The new standard, effective for most organizations in fiscal year 2006-07, guides auditors to communicate internal control matters to those charged with governance.

A New Audience for Internal Control Findings

In the past, auditors have tended to communicate their findings via management letter comments that may not have traveled much further than the CFO’s desk. The new auditing standard changes this. In particular, it requires the auditor to communicate, in writing, to management and those charged with governance, any significant deficiencies and material weaknesses in internal controls identified in an audit. This means the president, the board of directors, the CFO and senior management jointly shoulder the responsibility for ensuring the existence of effective internal controls.

An Opportunity to Educate

It is our belief that financial managers need to educate board members and colleagues about internal controls. PricewaterhouseCoopers, in its publication, Internal Controls: A Key to Accountability, characterizes internal controls in various stages of maturity from unreliable to optimized. The publication goes on to suggest that many organizations’ controls “can be characterized as having an informal maturity status.” How mature are your organization’s internal controls?

Next Steps

Partner with BearmanCPA and let us take the worry out of the internal controls assessment experience. Contact us for more details about an internal controls assessment at 910.508.0630 or use our contact form to send us an e-mail.

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IRS Form 990 Preparation and Review

While there is general agreement that the IRS Form 990 is not the right vehicle for drawing conclusions about an organization’s effectiveness, it is nevertheless widely used for this purpose. We assist in Form 990 preparation in order to ensure compliance with the law and a fair presentation of an organization’s activities.

How well does your Form 990 represent your organization? It is widely used by groups such as Charity Navigator and Guidestar to rate organizations’ effectiveness.

BearmanCPA will provide an independent review of your latest Form 990 and compare your presentation to those of your peers. We pay careful attention to the allocation of expenses between program, fundraising, and administration on Form 990. Charity watchdog groups are quick to use these ratios as a means of evaluating your effectiveness.

The foundation for good reporting is, of course, a good financial accounting system. For many nonprofit administrators, there are few tasks as daunting as choosing new accounting software. Prohibitive costs, paucity of choice and lack of sophisticated, web-based reporting can be demoralizing. BearmanCPA will partner with you to find creative solutions to your financial reporting challenges and ensure that Form 990 represents your organization appropriately.

Next Steps

We will be happy to assess your current Form 990 presentation to determine if it is in compliance with IRS mandates and that it reflects your program services accurately.  We can also recommend alternatives for your future reporting needs. Contact us for more details about your form 990 presentation at 910.508.0630 or use our contact form to send us an e-mail.

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Other Services

We are committed to serving all shapes and sizes of nonprofit organizations - and that includes start-up enterprises. We can assist you in a variety of ways including communicating with the IRS about your exempt status, helping you find better ways to use your financial software like Quickbooks® and Paychex®. We can also help fill expertise gaps that you have identified in your administration.

If you are like many nonprofit executives, you fight a constant resource allocation battle: investing in your programs versus investing in your administrative support structure. For example, you may decide not to hire a full-time CFO or add accounting personnel because doing so would take away valuable program dollars. BearmanCPA can fill this expertise gap for you. By partnering with us on a contract basis, you can tap into a level of skill and experience that will make your financial team stronger and give you peace of mind. For an agreed-upon number of hours per month, we work with your staff to improve the quality, timeliness, and usability of the financial information generated by your accounting system. Using trend and ratio analysis, we formulate a five-year financial model that will help you analyze your options as you chart your organization’s future.

No matter how you choose to staff the CFO function – whether through a traditional employee or non-traditional outsourced arrangement – you must also support that function through an outstanding accounting operation.

Consider using BearmanCPA to help you with your accounting transactions. We are experienced in all aspects of the accounting function – including general ledger, accounts receivable, accounts payable and payroll.

Next Steps

At BearmanCPA, we are committed to helping you improve the long-term financial health of your organization.  Contact us for more details about our accounting services at 910.508.0630 or use our contact form to send us an e-mail.

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