 |
| Lorelei Johns is a Regina-based Chartered Accountant whose practice focuses on non-profit organizations. Photo Credit: Greg Huszar Photography |
Horse Sense Blog: Dreaming green and good governance.
By Lorelei Johns
It is said that horses
love to dream. I imagine my horse, Red
dreaming of warm spring days when he can move freely in a sun filled green
pasture with the herd. Even in the world
of horses, dreaming leads to action.
Dreaming about good
governance also leads to action. As winter turns to spring, Not for Profit Boards
turn their minds to the most up-to-date information to fulfill their stewardship
role.
The most recent change
impacting NPOs is the implementation of new accounting standards for this
industry. In accounting lingo it is
called CICA Handbook Part III, Accounting Standards for not-for-profit
organizations. These standards are
effective for fiscal years starting on or after January 1, 2012. Recently, I attended a course on these new
standards.
It is the Board’s responsibility
to learn and understand these new standards.
Training must be provided to volunteers, management and staff. Communication to the users of your financial
statements will result in more disclosure in the notes to the financial
statements.
Here are some of the
significant changes that may impact your organization:
·
You will have a
transition Balance Sheet with three columns;
·
There are
standards specifically for Contribution Revenue;
·
Financial
Instrument notes include detailed analysis of risks, i.e. credit risk,
liquidity risk, market risk, currency risk, interest rate risk and other risk
exposures;
·
Cash Flow
statements are now always required; and
·
All outstanding
government remittances must be disclosed in the notes.
Contact your local United
Way office for workshops offered by community minded accountants. It is low cost and the presenters are very
knowledgeable. Other educational options
available include courses, readings, webinars provided by the Canadian
Institute of Chartered Accountants (CICA).
Check my website www.lrjca.com
for resource links. Once you have a base
line of knowledge, get in touch with your accountant for a discussion on how
these standards specifically impact your NPO.
I believe that up-to-date
fiduciary knowledge will lead you to greener pastures, just like Red and I will
experience this spring.
Lorelei will be a presenter at an April 4, 2013 United
Way Regina workshop, entitled “Internal Controls for Smaller NPOs”. If this is a topic you are interested in,
look for this workshop announcement on United Way Regina’s website; www.unitedwayregina.ca/investments/workshops.
Publisher's Note:
Lorelei presented at an April 4, 2013 United
Way Regina workshop, entitled “Internal Controls for Smaller NPOs”. Here is her feedback on SKY Magazine's impact.
"Oh, something you need to know...after the last issue of SKY...my United Way workshop jumped in attendance from 14 to 36 enrollments. And the number of emails and calls have increased, too. Thank you, Lynn. It's working."
Lorelei
Lorelei
