Thrive. Grow. Achieve.

NonProfit Financial Management & Accounting

Systems Seminar

Seth Zarny – Partner Buu-Linh Tran – Senior Manager Jeremy Taro – Business Development

Date: March 7, 2013

WHAT’S ON TAP

A. INTRODUCTION & AGENDA

B. CHALLENGES (GRANTS MANAGEMENT)

C. GRANTS MANAGEMENT SOLUTIONS

• Non-Financial Information

• Financial Information

D. FIELD OFFICE ACCOUNTING

E. FEDERAL REPORTING

F. DEMO (INTACCT & DYNAMICS GP)

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CHALLENGES - GRANTS

1. FINANCIAL REPORTING – MAINTAINING GRANT REPORTS/ DONOR REPORTS

2. TRACKING GRANT DOLLARS - MAINTAINING LARGE CHART OF ACCOUNTS

3. AVOID OVER SPENDING

4. GRANTS – TRACKING NON FINANCIAL INFORMATION & MANAGING GRANT INFORMATION

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CHALLENGES – FIELD OFFICE

1. PEOPLE (PRIORITIES/CULTURE/AUTHORITIES)

2. TECHNICAL CHALLENGES

3. DIFFERENT PROCESSES

4. MULTICURRENCY

5. DIFFERENT SYSTEMS

6. LOCATIONS

7. SUPPORT/ FINANCIAL REPORTING

REPORTING TO NECESSARY STAKEHOLDERS (BOARD OF DIRECTORS, DONORS, EXECUTIVES, PROGRAM MANAGERS, GRANTS MANAGERS, ETC.)

8. NONPROFITS MUST ACCOUNT FOR:

FUNDS, GRANTS, PROJECTS, PROGRAMS, AND MORE

9. 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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SOLUTION – TRACK NON-FINANCIAL DATA

1. INTACCT PROJECT ACCOUNTING/ USER DEFINED FIELDS

2. MICROSOFT DYNAMICS GP GRANTS MANAGEMENT/ EXTENDER

3. MICROSOFT DYNAMICS SL - PROJECT

4. SHAREPOINT

5. FINANCIAL SYSTEM(S)

6. CUSTOM APPLICATION/ DATABASE

7. MS EXCEL / WORD

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SOLUTIONS – TRACK 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 MODULES

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SOLUTION – TRACK FINANCIAL DATA IN MICROSOFT DYNAMICS GP

Features Chart of Account

Analytical Accounting

Olympic/ SL

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

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 Report by Project

X X X

8. Smartlist X X X

9. SSRS/ Custom report X X X X

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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 manage Easy to create report using MR Can slice and dice segment for reporting Work with MR/ existing report writer

Long COA Not accommodate multiple year (grant yr vs fiscal yr) Maintain old accounts forever Data entry Unable to handle complex grant requirement (time entry, complex allocation, etc.)

Analytical Accounting

Shorten COA Prevent charging expenditure in excess of revenue Work with MR/ existing report writer

Maintain sub-ledger / resource Separate screen for data entry Require reconciliation Additional training Additional configuration/setup

Olympic Project Accounting/ Dynamics SL

Shorten COA Track employee time and expense against grant Allow for sophisticated allocation Allow for sophisticated billing

Maintain sub-ledger / resource Separate screen for data entry Require reconciliation Additional training Additional configuration/setup Has separate reporting function

Intacct Project Accounting

Shorten COA Track employee time and expense against grant

Maintain sub-ledger / resource Require reconciliation Additional training Additional 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 Other system (QB) Maintenance factor/ Lag time User’s background Leverage on GP MC

Financial Report Report in local currencies (MR, SSRS) Easy access to reports

Documentation GP - Leverage on document management system integration Intacct - Document imaging is part of core product

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FEDERAL REPORTING REQUIREMENTS

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

2. FORM 990

3. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA)

4. FASB 117

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FORM 990

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FORM 990 – MANAGEMENT REPORTER

SEFA

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SEFA – MANAGEMENT REPORTER

FASB 117

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NONPROFITS USING INTACCT

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NONPROFITS USING MICROSOFT DYNAMICS GP

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GRANTS MANAGEMENT

DEMO 1. INTACCT

Dimension

Project

2. DYNAMICS GP

Grants Management

Analytical Accounting

Olympic

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Q&A

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THANK YOU!

Buu-Linh Tran Direct: 301-279-6511 E-mail: btran@raffa.com Seth Zarny Direct: 301-279-6500 E-mail: szarny@raffa.com Jeremy Taro Direct: 301-279-6504 E-mail: jtaro@raffa.com