Management is challenged to allocate resources adequately to meet an organization’s needs. Two main areas of focus for many organizations right now are the new financial reporting standards and cyber security. Finance teams are tasked with digesting new financial statement rules reducing net asset classification from three categories to two and enhancing financial statement disclosures,(including amounts and purposes of governing board designations, composition of net assets with donor restrictions and communication of how an organization manages its liquid resources, among others). These improvements will allow for readers including donors and creditors to better assess liquidity and financial performance during the period. Cyber security is a more recent threat. Hackers are taking over organizations’ systems and holding them ransom threatening the financial security of the organization. As many organizations’ systems hold the financial information of all their donors, they become a huge target. Threats are particularly high for those individuals traveling internationally, but threats can come from right across the street as well.
We can help with both! Ask your engagement team during your upcoming audit or review, or contact them directly.
Article written by
Meghan Buxton, CPA