Connections

 INSIGHTS FOR NONPROFITS

SEPTEMBER 2016  

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Director of Nonprofit
  
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Eide Bailly is a top 25 CPA firm in the nation, has worked with nonprofits since 1917 and currently services more than 1,600 organizations across the nation.
 
Connections is published on a regular basis to keep our clients and friends informed of current news impacting nonprofits.

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What's the Buzz on 403(b) Plans?
By: Peggy Jennings 

Much speculation has been generated by recent lawsuits filed against nonprofit universities challenging the administration of their 403(b) retirement plans.
 
In the cases filed, plaintiff employees allege that the fiduciaries of their 403(b) plans breached their fiduciary duty under ERISA related to the administration of the plans' investments - specifically, the number of investment options offered to participants and the fees associated with those investment options.
 
These recently filed cases are an excellent reminder of ERISA's high standards and the diligence required to properly oversee the investment offerings in a 403(b) or 401(k) plan. Fiduciaries can take action to mitigate the risk of litigation and ensure they meet ERISA's high standards. For instance, fiduciaries may perform an audit of their plan's fiduciary practices and conduct fiduciary training for the individuals administering the plan. Plan fiduciaries should also review their plan's fee structure and engage in negotiations with vendors to reduce those expenses. In addition, plan fiduciaries should consider whether it would be prudent to hire an investment advisor to choose and develop the investment platform for the plan.
IRS 2016/2017 Priority Guide 
By: Deb Nelson

The Department of Treasury has released the 2016-2017 Priority Guidance Plan, which contains a total of 281 projects that are considered priorities for the fiscal year July 1, 2016 to June 30, 2017. Of these projects, 15 are specific to exempt organizations.
 
In addition to the projects identified for exempt organizations, there are other projects that also have an impact on the industry: charitable contributions, tax-exempt bonds and employee benefits. The identified priorities will be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance. Treasury intends to republish this plan throughout the year to address new priorities that may arise and to report on progress towards publishing guidance on the specified areas.
 
View the full article here.
Just in from the AICPA: FASB Issues Nonprofit Reporting Standard
By: Tim McCutcheon

The Financial Accounting Standards Board (FASB) has issued its long-awaited and much debated Accounting Standards Update (ASU) 2016-14, "Presentation of Financial Statements for Not-for-Profit Entities." The ASU is the first in a two-phase project and will change the way all not-for-profits (NFPs) classify net assets, prepare financial statements and disclose certain liquidity and other information. The ASU is effective for fiscal years beginning after Dec. 15, 2017 (i.e., for years ending Dec. 31, 2018 and beyond). Early application is permitted by FASB. The amendments should be applied on a retrospective basis in the year that the ASU is first applied, with some optional exceptions.
 
Obtain the ASU from FASB by clicking here. 

View the full article here.
Would You Like Confidence in Your Cyber Security Direction? 
By: Anders Erickson

The Cyber Security Compass, just launched by Eide Bailly's cyber security team, can be your organizations guide toward a culture of security. The Cyber Security Compass is an analysis of your cyber security strengths and weaknesses, along with recommendations for how to address key risk areas. This assessment will provide your board or executive management with a big-picture view, enabling them to prioritize action in regards to the organization's key cyber security risks while equipping IT leadership with the detail necessary to make corrective actions.
 
The Cyber Security Compass uses a four-step process:
  1. Completion of questionnaire
  2. Data gathering via inquiry
  3. Internal analysis and evaluation
  4. Review and discussion of interactive report
The importance of a comprehensive cyber security plan can't be overstated. Regardless of the size and capabilities of your IT environment, it's your top leadership who bear the burden of ensuring the safety of your data. The goal of the Cyber Security Compass is to help you, as a decision maker, know you cyber security strengths and weaknesses in order to effectively control your risk areas.
 
For more information about cyber security, visit our website or contact your Eide Bailly representative
In Case You Missed It! 

Recent posts to the  Nonprofits Talk blog include: 
This publication is produced and published by Eide Bailly and distributed with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns as the contents of the publication are intended for general informational purposes only. Readers are urged not to act upon the information contained in this publication without first consulting competent legal, accounting or other professional advice regarding implications of a particular factual situation. Questions and information for publication can be submitted to your Eide Bailly representative. To request reprints of this publication, send a written request to [email protected]. Copyright Eide Bailly 2016