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Goodbye SAS 112, hello SAS 115 — Don’t over-rely on your auditors for financial statement prep
 Applying AICPA Statement on Auditing Standards No. 115, Communicating Internal Control Related Matters Identified in an Audit (SAS 115), will be required during the next fiscal year audit (for periods ending on or after Dec. 15, 2009). This new standard supersedes SAS 112 of the same title. As with SAS 112, understanding what constitutes “control deficiencies,” “significant deficiencies” and “material weaknesses” is key to applying the standard. This article shows how to spot control deficiencies, determine their severity, and book adjustments for them. A sidebar explains what constitutes a material adjustment.
Outsourcing bookkeeping
 The economic downturn has many nonprofits strapped for cash and outsourcing routine functions to cut costs. Bookkeeping is one of them. And while outsourcing this task has many benefits — such as saving time, labor and resources — it also has a few drawbacks. But setting clear expectations and strong lines of communication from the start can usually ward off potential problems.
Get in shape — How to form — or improve — an audit committee
 Some states require not-for-profits with a certain level of annual revenue to have an audit committee in place. Others strongly encourage it. But, even without regulatory prodding, forming an audit committee allows nonprofits an opportunity to get financial experts involved who have knowledge of the audit process. But it’s important to adopt best practices, and make sure that participants are independent and have the right financial backgrounds.
News for Nonprofits
 This issue’s “News for Nonprofits” looks at Web sites that are useful for recruiting personnel; a survey addressing donor contribution trends; and new, lower IRS mileage rates for employees who use their vehicles for work.
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. ©2010 NPAam10
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