Webinar Slides: Major Changes in Federal Reporting for Nonprofits


Published on

Original air date:
Jan. 17, 2014
Rebroadcast on Jan. 30, 2014
View at http://www.mhmcpa.com

The Single Audit Data Collection Form has been overhauled.

Auditors and not-for-profit organizations are about to encounter one of the biggest changes in federal reporting to happen in quite some time. The Data Collection Form (DCF) has undergone a significant overhaul as to the information required to be reported and the way in which the Federal Audit Clearinghouse (FAC) requires this information to be presented. The changes are applicable for audit periods ending in 2013, 2014 and 2015. The new DCF will be available for input on the FAC website soon after January 7. The deadline for 2013 single audits has been extended to February 28, 2014.

If you are an auditor or are responsible for the federal reporting at a not-for-profit organization then you should not miss this course that will provide valuable information to you and your organization on the new changes and protocols as well as best practices in gathering information and preparing the DCF.

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Webinar Slides: Major Changes in Federal Reporting for Nonprofits

  1. 1. MHM Executive Education Series: Major Changes in Federal Reporting by Nonprofits Presented by: Michelle Spriggs Brendan Donovan January 17, 2014
  2. 2. Before We Get Started…  To view this webinar in full screen mode, click on view options in the upper right hand corner.  Click the Support tab for technical assistance.  If you have a question during the presentation, please use the Q&A feature at the bottom of your screen. #MHMwebinar 2
  3. 3. CPE Credit  This webinar is eligible for CPE credit. To receive credit, you will need to answer periodic participation markers throughout the webinar.  External participants will receive their CPE certificate via email immediately following the webinar. #MHMwebinar 3
  4. 4. Disclaimer The information in this Executive Education Series course is a brief summary and may not include all the details relevant to your situation. Please contact your MHM service provider to further discuss the impact on your financial statements. #MHMwebinar 4
  5. 5. Today’s Presenters Michelle E. Spriggs, CPA, MBA Managing Director, CBIZ Tofias; Shareholder, Mayer Hoffman McCann P.C. 774.206.8336 | mspriggs@cbiztofias.com Michelle is a member of MHM’s Professional Standards Group providing specialty expertise with respect to not-for-profit matters, in addition to her client service responsibilities in our New England offices. Michelle concentrates her efforts on matters impacting not-for-profit organizations and OMB Circular A-133 audits. She works with numerous not-for-profit and higher education organizations providing a broad array of financial statement and compliance audit services. Prior to joining the firm, she worked for a top ten accounting firm specializing in serving not-for-profit organizations. Brendan P. Donovan, CPA, MSA Director, CBIZ Tofias; Principal, Mayer Hoffman McCann P.C. 401.626.3235 | bdonovan@cbiztofias.com Brendan is a Director in CBIZ and MHM's Not-For-Profit & Education Audit Practice. Brendan has over 10 years of experience working with a number of not-for-profit organizations and institutions of higher education. He is experienced in managing financial statement audits, evaluating internal controls, and training the firm’s accounting and auditing personnel in the Not-For-Profit & Education Practice. #MHMwebinar ‹#› 5
  6. 6. Today’s Agenda 1 Overview and Background 2 Changes to the Data Collection Form submission process 3 Changes to the Data Collection Form 4 Questions #MHMwebinar 6
  8. 8. Overview and Background  The Data Collection Form (DCF) is updated periodically and filed with the Federal Audit Clearinghouse (FAC), which is the entity responsible for maintaining the database of completed audits.  For 2013, there have been changes to both the form as well as significant changes to the Federal Audit Clearinghouse system used to submit the DCF.  The new DCF and instructions will be applicable for audit periods ending in 2013, 2014, 2015. The OMB has granted an extension until February 28, 2014. The extension is automatic and there is no approval required. The extension applies only to single audits for the fiscal periods ending in 2013.  #MHMwebinar 8
  10. 10. Changes to the DCF Submission Process    Submission of the DCF to the FAC is done through the FAC Internet Data Entry System (IDES) Historically, a report ID and password were shared among the groups responsible for filing the DCF. This will no longer be the case. 2013 Change – per the FAC website  Every user must create an account in the new IDES. User accounts will be based on an e-mail address and an individual password. IDES users may access previous submissions or start new submissions. #MHMwebinar 10
  11. 11. Changes to the DCF Submission Process #MHMwebinar 11
  12. 12. Changes to the DCF Submission Process  #MHMwebinar By filling out the form you will have created an account that will allow you access to all reports matching your ID. 12
  13. 13. Changes to the DCF Submission Process  Once an account has been created you will receive an email with instructions on setting up a password. #MHMwebinar 13
  14. 14. Changes to the DCF Submission Process Password requirements     Password email received from govs.fac.ides@census.gov Password cannot be re-used Expires every 60 days, or after 30 days of no activity Easy process to reset   Enter email address and follow link on updated email sent Only one password reset allowed per day #MHMwebinar 14
  15. 15. Changes to the DCF Submission Process Password requirements (continued)   At least 12 characters long Must contain at least one of each of the following categories      Upper case letters Lower case letters Numbers Special characters from !@#$%^&*() No character repeated more than four times #MHMwebinar 15
  16. 16. Changes to the DCF Submission Process Best Practices • Email your client to inform them that you have included their email address on the DCF to ensure they register and that the email received from the FAC is not deleted as junk mail when received. For 2014, include on your audit timeline the anticipated timing for filing of the DCF to ensure the client is on the lookout for emails from the FAC. • Designate one individual (with a back-up) in your office to be responsible for creating and maintaining an account. • Keep password on the network and make sure it is updated by the designated individual. #MHMwebinar 16
  17. 17. Changes to the DCF Submission Process Account home screen after successful login #MHMwebinar 17
  18. 18. Changes to the DCF Submission Process Verify that filing is required #MHMwebinar 18
  19. 19. Changes to the DCF Submission Process Once it has been determined that you are required to file, you start a filing by completing this information. #MHMwebinar 19
  20. 20. Changes to the DCF Submission Process John Doe johndoe@xyz.com Michelle Spriggs NewEnglandDCF@cbiz.com Michelle Spriggs mspriggs@cbiz.com As noted previously, filings will be linked to email addresses which are input here. In addition to the certification officials required for the auditor and auditee up to five additional contacts can be entered for each. #MHMwebinar 20
  21. 21. Changes to the DCF Submission Process johndoe@xyz.com mspriggs@cbiz.com #MHMwebinar 21
  22. 22. Changes to the DCF Submission Process Best Practices  All: May want to limit adding too many people. Anyone added here can make changes to the form, and there is no tracking, so it will be impossible to keep track of changes made by others.  Certifying Auditor: Add name of certifying official, use designated email address so designated DCF person can certify form once they have received proper sign off/notification from certifying official.  Auditor: Add name and email address of certifying official. #MHMwebinar 22
  23. 23. Changes to the DCF Submission Process Easy view of current status #MHMwebinar Only the designated “certifying official” can click certification buttons. No more signature codes. 23
  24. 24. Changes to the DCF Submission Process Other enhancements to the process     Elimination of security questions and answers as your email address is entered to reset your password Downloadable list of error messages provides for better trouble shooting The DCF must be complete before uploading of the audited financial statements can occur, which reduced errors Spreadsheet templates are available for all pages where data upload is possible to streamline the reporting process #MHMwebinar 24
  25. 25. Changes to the DCF Submission Process Best Practice  Drafting Process:  Create a PDF of the data collection form     Helpful hint: In order to print the DCF, you must first finalize the form. If changes need to be made, unlock the form and make changes. Sync into the engagement binder Email securely to client/put on portal To ensure integrity, a final proof should be done to be sure the approved draft is the same as that on the website. #MHMwebinar 25
  26. 26. Changes to the DCF Submission Process Certification changes    No longer use signature codes Access for certification is restricted to the email accounts initially set-up with the ability to certify For better tracking to completion each step in the process now includes a “completed by” column to identify the individual, date and time the step was completed PDF Requirements    All FY2014 audits must be unlocked, unencrypted and 85% of pages text searchable Advance pass fail notices with all current submissions Detailed instructions on compliant PDF Single Audit Report can be found at https://harvester.census.gov/fac/create_pdf.pdf #MHMwebinar 26
  27. 27. Changes to the DCF submission process Clients: select resume when certifying form. #MHMwebinar 27
  29. 29. Changes to the Data Collection Form Employer Identification Numbers (EIN) – Part I    Beginning in 2013, all audit firms must report their EIN Secondary auditors must also report their EIN on the secondary auditor contact information page. See Tech Bulletin 2013-02 for MHM’s EIN#. #MHMwebinar 29
  30. 30. Changes to the Data Collection Form Federal Programs – Part III  Identify Loan/Loan Guarantee    Standardized Audit Finding Reference Numbers    Yes/No response Expenditure detail for each component listed on separate lines when CFDAs have multiple components Not required for 2013 but will be required for 2014 Reference numbers should match Schedule of Findings and Questioned Costs and audit reports List the number of audit findings on each Federal award #MHMwebinar 30
  31. 31. Changes to the Data Collection Form Highlighted sections above show the changes previously described. #MHMwebinar 31
  32. 32. Changes to the Data Collection Form Federal Award Findings Summary – Part III, Item 7      Columns (a)-(c) automatically populated based on responses to Part III, Item 6 (k) Each federal award finding separately described Type of compliance requirements to be indicated (i.e. compliance, internal control, other) Yes or No question on questioned costs related to the finding There are 9 combinations of “Compliance Findings,” “Internal Control Findings,” and “Other Findings” for each Federal program with findings. #MHMwebinar 32
  33. 33. Changes to the Data Collection Form #MHMwebinar 33
  34. 34. Questions? #MHMwebinar 34
  35. 35. If You Enjoyed This Webinar…  View these previously recorded EES courses:    New and Emerging Business Risks for Not-for-Profit and Educational Organizations What's New in Not-for-Profit Accounting and Auditing Standards? Sign up for our Not-for-Profit Viewpoint newsletter #MHMwebinar 35
  36. 36. Connect with Mayer Hoffman McCann linkedin.com/company/ mayer-hoffman-mccann-p.c. @mhm_pc youtube.com/ mayerhoffmanmccann slideshare.net/mhmpc gplus.to/mhmpc facebook.com/mhmpc blog.mhmcpa.com #MHMwebinar 36