NPO Hot Topics: Keeping Control in a Tech Savvy World
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NPO Hot Topics: Keeping Control in a Tech Savvy World
- 1. welchllp.com KEEPING CONTROL IN A TECH-SAVVY WORLD NON-PROFIT HOT TOPICS:
- 2. GROUND RULES Questions • Attendees are in listen-only mode • This webinar is being recorded for future on-demand playback • Your participation represents acknowledgement that we are recording • Tweet questions & comments to: #WelchNPO Windows Mac Tablet
- 3. welchllp.com Kathy Steffan, CPA, CA Partner ksteffan@welchllp.com @WelchToronto Christa Casey, CPA, CA Partner & Director of the Not-for-Profit Sector ccasey@welchllp.com @ChristaCaseyCPA PRESENTERS Virginia Lackey, CPA, CA, CIA Senior Manager & Director of Assurance Services vlackey@welchllp.com @WelchToronto
- 4. WHAT WE’LL COVER TODAY welchllp.com • Banking innovations • The updated payroll process • Going paperless • Being on the “Cloud” • Q&A
- 5. welchllp.com BANKING INNOVATIONS Online banking – Features • Online bank access • Making electronic payments • Remote approval • Deposits using cheque scanners • Read only access • Electronic bank statements with scanned cheques
- 6. welchllp.com BANKING INNOVATIONS Online banking – Benefits • Constant access to bank activity • Cost efficient • Time saving • Improved controls • Environmentally friendly
- 7. welchllp.com BANKING INNOVATIONS Risks/Costs • Implementation time & training • Learning curve- not everyone is tech savvy • Need to ensure that controls mirror pre-implementation- cheque signing; segregation of duties • Appropriate computer access required by cheque signers • Cheque signers need to carry payment token/fob • Need to implement process for emailing cheque signers support for payments
- 8. welchllp.com THE UPDATED PAYROLL PROCESS • Electronic employee files • Timesheets/timecards • Payroll outputs/registers • Payments/EFTs
- 9. www.welchllp.com welchllp.com THE UPDATED PAYROLL PROCESS Electronic employee files • Saves space • Lower storage costs • More accessibility • Reduction in risk of loss • Online onboarding • Restricted access • Completeness • Document retention • Data security
- 10. www.welchllp.com welchllp.com THE UPDATED PAYROLL PROCESS Electronic timesheets • Increased accuracy • Convenience • Increased productivity • Approval of timesheets • Restrictions to changes
- 11. www.welchllp.com welchllp.com THE UPDATED PAYROLL PROCESS Payroll outputs • Environmentally friendly • Convenience • Evidence of review • Storage
- 12. www.welchllp.com welchllp.com THE UPDATED PAYROLL PROCESS Payments • Time saving • Authorization
- 13. welchllp.com GOING PAPERLESS Five Steps: 1. Internal Documents (ie- Google Docs) 2. Paperless Bank Statements and bill payments 3. Storage & file sharing (ie- Dropbox, YouSendIt) 4. Meetings and Printouts (ie- Doodle, SurveyMonkey, TeamViewer, & whenisgood.net) 5. Paperless Scanning & faxing (ie-Turboscan, eFax.com)
- 14. welchllp.com Benefits: • Helps businesses lighten the load • Clears clutter from the office • Low cost or free solutions • Decreases Environmental footprint • Great PR Message • Less office space…lower rent (no more filing cabinets) GOING PAPERLESS
- 15. welchllp.com Risks/ Costs: • Strong implementation plan & team lead mandatory • Timely conversion process requiring diligence and flexibility from all staff and Board members • Technical integration is key • Time cost for training and implementation • Not following proper storage procedures could lead to havoc • Challenging to non tech savvy users/staff • Safeguarding client/customer data in appropriate proprietary environment • Need to ensure proper retention for CRA and other regulatory bodies (ie- CRA- a minimum of 6 years) GOING PAPERLESS
- 16. welchllp.com Ways to be on the “cloud” • Data storage/sharing • Service providers BEING ON THE “CLOUD”
- 17. welchllp.com Why be on the “cloud” • Cost savings • Flexibility • Disaster recovery • Security BEING ON THE “CLOUD”
- 18. welchllp.com Considerations being on the “cloud” • Data location • Document retention • Data security BEING ON THE “CLOUD”
- 19. QUESTION & ANSWER Questions • Tweet questions & comments to: #WelchNPO Windows Mac Tablet
- 20. welchllp.com Kathy Steffan, CPA, CA Partner ksteffan@welchllp.com @WelchToronto Christa Casey, CPA, CA Partner & Director of the Not-for-Profit Sector ccasey@welchllp.com @ChristaCaseyCPA ASK THE EXPERTS Virginia Lackey, CPA, CA, CIA Senior Manager & Director of Assurance Services vlackey@welchllp.com @WelchToronto
Editor's Notes
- Christa Casey, CPA, CA - Partner & Director of the Not-for-Profit Sector With over 20 years of experience, Christa Casey has become an expert in auditing not-for-profit organizations. In January 2010, Christa was appointed as Welch’s Director, Not-for-Profit Sector. Prior to this, Christa was a Quality Assurance Manager. Her previous and current positions require a high level of technical competence while staying informed of all developments in accounting and auditing standards. Kathy Steffan, CPA, CA – Partner Kathy Steffan has lead Welch LLP's Toronto office as Partner since joining the firm in 2011. She has 30 years of financial statement audit and accounting experience. Apart from developing her experience in auditing with NPOs and for profit clients, Kathy has also managed, as Director of Finance, the start-up and on-going operations of eight companies. Among her community involvement, Kathy is on the Board of Directors of the Canadian Society of Association Executives (CSAE) Trillium Chapter and the co-chair of the CSAEGovernance Committee. Virginia Lackey, CPA, CA, CIA- Senior Manager + Director of Assurance Services Virginia Lackey joined Welch LLP in 2006 after completing her Bachelor of Commerce degree. She received her Chartered Accountant designation in 2009 and her Certified Internal Auditor designation in 2010. Virginia is the Director of Assurance Services at Welch Toronto. She specializes in audit engagements in a variety NPO sectors and the public sector.
- Technology is helping the finance department/team become for efficient and effective however with all benefits come costs or risks. As part of todays webinar we will provide an overview of the benefits that finance departments of not-for-profits can expect from technology changes and the potential risks associated with those changes and how they can be addressed. We will be focusing on technology shifts in how banking is done, the payroll function, paperless and cloud based environments.
- Online collection tools – reduces the need for paper based deposits at the bank. There are various methods of online collection, such as; accepting EFTs and scanning cheques for deposit. Online receipts save on time as staff do not have to go to the bank to physically make the deposit
- POSITIVES: Constant access to bank activity: leads to efficiencies in monitoring cash flow throughout the month enables accounting/bookkeeping efficiency leading to timeliness of monthly results assists external accounting service to access activity without bothering staff Read-only access: Can give external accounting service or internal bookkeeper read only access without compromising controls Cost efficient: No more cheque printing and cheque processing charges….now approx. $2.50 per cheque in total Reduces travel and other related costs for cheque signers Time Saving: No need to “push paper” Don’t need to go to bank to make deposits No travel time to get cheques signed Environmentally friendly: First step towards paperless files Increased Control Reduces risk of fraud due to cheque signing
- NEGATIVES/CONTROLS REQUIRED Time to implement/Learning curve Need to spend time training Set-up time with bank Not everyone as tech savvy All remote signers need adequate computer and internet access Requirement to implement new controls to compensate Need to ensure that controls mirror pre-implementation controls- dual approval mechanism Need to establish control over fobs Need to establish process to review supporting documents Email support to cheque signers Cheque signer email back approval Need to establish storage policy for emailed approvals Risk of Fraud Misappropriated/ stolen fobs Impersonation
- For not-for-profit organizations payroll costs are often the most significant cost given human resources drive the organization however the payroll function is often the responsibility of a staff or small team which creates the opportunity for technology to play a key role. Technology has impacted every aspect of the payroll cycle from the HR function in terms of employee files moving from paper files to electronic files. Payroll initiation in the form of electronic time sheets. Payroll outputs in paperless formats and payments done online through Eft and/or direct deposit. The following slides will cover the benefits to each of these changes and the challenges and/or risks to be addressed.
- There has been a trend towards maintaining electronic/paperless employee files. Even without the transition a lot of employee file documents are being done electronically such as approval of pay rate changes, notification of pay rate changes, benefit changes, etc… Electronic employee files free up space in HR offices Are less costly to store for the long-term. Electronic file storage is much cheaper than physical storage solutions. Electronic files are more accessible and reduce the risk of loss as information can be backed up and restored if required. And employee onboarding can be done paperlessly, new hires can review, complete and legally sign all forms and other onboarding documents online before they arrive for their first day of work. However, as with any transition or change in system there are risks that need to be addressed. Think about the measures put in place in regards to paper employee files and ensure those have been implemented in terms of electronic files. Ie. Paper files are stored in the HR office in locked cabinets with restricted access. The electronic files should be subject to security measures such as limiting access with security settings, password protection and data encryption The paper file is to include all information associated with each employee including pay increase authorizations, etc… The same should be done for electronic files, authorizations done by email are more than acceptable however they should be stored in the employee file and not in the HR staff’s email. Paper documents should be scanned and legible copies saved. With having any confidential information in electronic form there is always the risk of the information being stored in multiple locations ie. in cloud systems, unrestricted network folders, transferred to personal devices or in email on personal devices. Restricting access to the documents which we discussed above is key but also restrictions on copying the information to other cources.
- The payroll process begins with the initiation of work performed, usually in the form of completed timesheets. Timesheets are a great practice for the majority of not-for-profit organizations even those that have only salaried employees because besides tracking hours worked it allows for tracking of time on a project basis for allocation purposes as well as vacation and sick days used. There has been a shift from manual timesheets to electronic timesheets. Whether that is in the form timesheet systems from various providers or timesheet systems through a payroll service provider. Using electronic timesheets and/or timecards increases accuracy as it eliminates illegible handwriting errors/mistakes. Electronic time cards also reduces the reliance on an honour system and reduces the risk of time theft. The use of electronic time cards also eliminates calculation errors ie total of reglular hours, OT hours and Total hours, etc… Electronic timesheets/timecards allow for inputting hours while off-site, allows supervisors to review timesheets remotely not requiring collection from each staff and then submission to payroll/HR especially if the NPO has multiple locations the supervisors then do not need to If electronic timehseets/cards are used that are compatible with the payroll processing system in can be much more efficient to upload or import the hours worked into the payroll system rather than manually entering in the hours based on manual timesheets. Again manual entry also increases the chances for typing errors and mistakes in payroll. HR/payroll can access timesheets directly and do not have to wait for manual timesheets to be submitted. As with manual timesheets a key control to ensure only hours worked are being paid is to have the timesheets approved by supervisors/managers. It is important to maintain this control even if electronic timesheets are used. Timesheets systems have these capabilities built in and it just needs to be set-up or activated. There are various methods of approval required. Ie. Supervisors must approve time in the system without approval the payroll/HR department cannot process the time. HR manager/payroll must review and approve time in order to generate the details for upload into the system etc… Regardless of the type of approval system put in place time should not be processed and paid without approval. One control that manual timesheets have is that once submitted employees cannot change the hours logged and so what was submitted and approved is what will be paid. The same should exist for electronic timesheets. Changes to timesheets should be restricted to only supervisors and hr/payroll. Another control that can be implemented is that employees use clock cards to which they punch in and out but do not have any other access to their time records.
- The payroll process begins with the initiation of work performed, usually in the form of completed timesheets. Timesheets are a great practice for the majority of not-for-profit organizations even those that have only salaried employees because besides tracking hours worked it allows for tracking of time on a project basis for allocation purposes as well as vacation and sick days used. There has been a shift from manual timesheets to electronic timesheets. Whether that is in the form timesheet systems from various providers or timesheet systems through a payroll service provider. Using electronic timesheets and/or timecards increases accuracy as it eliminates illegible handwriting errors/mistakes. Electronic time cards also reduces the reliance on an honour system and reduces the risk of time theft. The use of electronic time cards also eliminates calculation errors ie total of reglular hours, OT hours and Total hours, etc… Electronic timesheets/timecards allow for inputting hours while off-site, allows supervisors to review timesheets remotely not requiring collection from each staff and then submission to payroll/HR especially if the NPO has multiple locations the supervisors then do not need to If electronic timehseets/cards are used that are compatible with the payroll processing system in can be much more efficient to upload or import the hours worked into the payroll system rather than manually entering in the hours based on manual timesheets. Again manual entry also increases the chances for typing errors and mistakes in payroll. HR/payroll can access timesheets directly and do not have to wait for manual timesheets to be submitted. As with manual timesheets a key control to ensure only hours worked are being paid is to have the timesheets approved by supervisors/managers. It is important to maintain this control even if electronic timesheets are used. Timesheets systems have these capabilities built in and it just needs to be set-up or activated. There are various methods of approval required. Ie. Supervisors must approve time in the system without approval the payroll/HR department cannot process the time. HR manager/payroll must review and approve time in order to generate the details for upload into the system etc… Regardless of the type of approval system put in place time should not be processed and paid without approval. One control that manual timesheets have is that once submitted employees cannot change the hours logged and so what was submitted and approved is what will be paid. The same should exist for electronic timesheets. Changes to timesheets should be restricted to only supervisors and hr/payroll. Another control that can be implemented is that employees use clock cards to which they punch in and out but do not have any other access to their time records. Comments on risks need to be added
- Payments of payroll as well as related remittances
- Questions: How long does it take to go Paperless? Which Canadian Banks offer the best online solutions? Is it desirable to hire a consultant to steer the “Paperless” Conversion? Is it desirable to run parallel for a period of time when doing a “Paperless” conversion? When implementing Electronic Fund Transfers, are most payees set-up to receive online payments? What size of payroll is required to make online payroll worthwhile Time sheet approval and payroll register approval was discussed are both required For a small NPO with few employees who should review the payroll - -