We help nonprofit organizations achieve their mission

We do this by bringing them industry trained, experienced accounting resources who implement current best practices in the nonprofit sector.

We enhance internal financial control and reporting systems — either updating existing systems or putting systems in place where none existed before.

In all cases we help management understand its financial condition and plan for the future. But AMS professionals go beyond providing reliable numbers by asking the right questions.

For example:

• Are you recognizing restricted revenues correctly?
• Are you in compliance with grant agreements?
• Are you reporting accurately to your board of directors?
• Are your books and records up to date?
• Do you regularly review and enhance internal controls?

Good systems and expert, informed analyses produce reliable numbers that help answer these questions.

Most importantly, AMS provides nonprofit organizations with access to expertise and knowledge that often may not be needed on a full-time basis, is difficult to obtain, or too expensive and time consuming to develop internally.

Effects of Sarbanes-Oxley on nonprofits

Although Sarbanes-Oxley focuses on publicly held companies, a number of states are considering legislation that will impose similar disclosure requirements on nonprofit organizations. Highlights of legislation proposed in 2004 in the northeast include:

Connecticut — Today, every charitable organization must file a financial statement every year, signed by two authorized officers, including the CFO. Organizations with gross revenue greater than $200,000 shall include an audit report. New legislation would require each organization to file a quarterly report that includes all expenditures paid from any checking account it maintains.

Maine — Charitable organizations renewing their registration must submit an audited financial statement, including federal IRS Form 990.

Massachusetts — Large nonprofit organizations, those with annual revenues exceeding $750,000, would have to have an independent audit performed. Their managing officers must certify the accuracy of financial statements, and they must establish disclosure controls and internal controls over financial reporting. Managing officers of smaller public charities, those with revenues less than $750,000, must certify the accuracy of their financial statements.

New York — For nonprofits with annual revenues under $1 million and assets less than $3 million, the president or CEO and treasurer or CFO must sign the annual report, verifying that signing officer has reviewed it, and that based on his knowledge, the report fairly presents-in all material respects-the financial condition and results of operations of the corporation. For larger organizations, the president or CEO and treasurer or CFO must sign the annual report, verifying that the signing officer has reviewed it, and that based on his knowledge, the report fairly presents-in all material respects-the financial condition and results of operations of the corporation.

Vermont — Nonprofit organizations receiving state, local, or federal funds must submit audited financial statements to the State Auditor’s office.

AMS assists nonprofits demonstrate independence between their audit and advisory teams by::

• Working with boards of directors
• Training senior managers to comply with the law
• Developing best practices within the organization, including adopting a code of ethics for senior management and the board of directors
• Developing financial literacy among operating and line managers

Contact:
Leigh Tucker, Managing Director, Nonprofit Practice — Tel 781-419-9220 or email ltucker@amsolutions.net

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