Nonprofit Auditing and Accounting Update (2008–2009 Edition)

OVERVIEW

Course Objectives

• Understand the implications of the latest proposed and final pronouncements by the FASB, the GAO, the OMB, and the AICPA.
• Apply the new requirements more effectively.
• Implement the latest technical practice advice.

Introduction

Covering all the latest auditing and accounting developments affecting nonprofit entities, this course will give you a complete understanding of changes in the nonprofit environment. In the video, W.A. Broadus, Jr., CPA, CGFM, interviews Peter B. Bell, CPA, CGFM; Allen L. Fetterman, CPA; Mary Foelster, CPA; James S. Remis, CPA; Ann Russo; and Christopher Stubbs, CPA.

Course Components

The complete video-based course consists of:

• A manual with six chapters, and eight appendixes.
• A video presentation in three segments.
• An examination for self-study credit.
• An exam answer form.
• A course evaluation form.

Course Organization

This course is organized as follows.

• Chapter 1, Federal Government Activities
• Chapter 2, AICPA Activities
• Chapter 3, Accounting and Reporting Issues for Not-for-Profit Organizations
• Chapter 4, Congressional and FASB Activities Directed Towards Not-for-Profits
• Chapter 5, Ethics Focus: Accounting and Auditing
• Chapter 6, Latest Developments
• Appendix A, 2004 Data Collection Form
• Appendix B, Government Auditing Standards 2003 Revision
• Appendix C, 2006 Compliance Supplement Excerpts
• Appendix D, PHA Notice
• Appendix E, GAO CPE Guidance
• Appendix F, Example Yellow Book and A-133 Audit Reports
• Appendix G, Organizations Issuing Government and Nonprofit-Related Publications
• Appendix K, Not-for-Profit Practice Aid

Chapter 1

Federal Government Activities

Learning Objectives

• Understand recent Federal Audit Clearinghouse activities for OMB Circular A-133 audits including developments related to the Data Collection Form.
• Review key OMB Circular A-133 audit quality issues.
• Review the status of the National Single Audit Sampling Project.
• Review some of the major revisions in the 2006 OMB Circular A-133 Compliance Supplement.
• Review some of the recent developments related to HUD engagements.
• Understand key areas covered in the 2005 Yellow Book CPE guidance.
• Review the 2006 Yellow Book revision project.
• Review the status of the AICPA Governmental Audit Quality Center and the AICPA Audit Guide Government Auditing Standards and Circular A-133 Audits.
• Understand the Federal Financial Assistance Management Improvement Act.

Introduction

This chapter will provide a wide range of updates on the areas listed above.

Federal Audit Clearinghouse Activities

The Single Audit Act Amendments of 1996 required that the Director of the Office of Management and Budget (OMB) designate a Federal clearinghouse to

• Receive copies of all reporting packages developed in accordance with the Act;
• Identify recipients that expend $500,000 or more in Federal awards or such other amount specified by the Director of OMB under section 7502 (a)(3) of the Act during the recipient’s fiscal year but did not undergo an audit in accordance with the Act; and
• Perform analyses to assist the Director of OMB in carrying out responsibilities under the Act.

In 1997 OMB established the Federal Audit Clearinghouse (FAC) within the Bureau of Census, Department of Commerce. The FAC serves as the central collection point, repository, and distribution center for OMB Circular A-133 audit reports.

The primary functions of the FAC are to:

• Receive the results and the audit report from the auditee;
• Archive copies of the results and audit report;
• Forward a copy of the audit report to each Federal awarding agency which has provided direct funding and which has a related audit finding;
• Maintain an electronic database of the results which is accessible via the Internet; and
• Answer inquires concerning submission requirements of the Circular.