Page 28 - Healthcare News Mar/Apr 2022

HEALTHY OUTLOOK
The Art of Being Ready
Best Practices to Prepare for Your Nonprofit’s Year-end Audit
BEy CHELSEA RUSSELL
ach year goes by faster than the last, and be-
fore you know it, your nonprofit’s year-end
audit is right around the corner. Collectively, we can all agree that the audit process
should be quick and easy, but we often face audits that never seem to end. Have you ever wondered what you can do to make an audit go smoothly and be as efficient as possible so that deadlines can be met? This is a great opportunity for you to learn about how your organization can have a more ef- ficient audit process and how your organization can continue to improve procedures surrounding audit preparation.
As an auditor who is involved in many not-for- profits, I’d like to share some best practices to help you prepare for your year-end audit.
Have a Planning Meeting
It’s never too early to start reaching out to your auditor. Having a planning meeting with your audi- tor a month before your organization’s year end is encouraged. This meeting will serve many purposes, such as reminding everyone of specific due dates, discussing significant activity over the last year, and deciding on a start date for the audit based on your readiness.
Establish a Timeline
Once you and your auditor have discussed due dates and a start date for the audit, you should start preparing for the audit early by asking for your auditor’s data-request list. Review the list with your auditors, ask for what items are priority for testing
purposes, and establish an internal due date for your team. As you and your team start preparing informa- tion for the audit, have regular check-ins with your auditor as you approach each due date and the start of the audit.
Reconcile All Significant Trial Balance Accounts
well ahead of the annual audit. Depending on where your funding is coming from can dictate the level
of compliance requirements you have to adhere to. For example, if you receive federal funding or federal funding passed through the state, this could require
“
Prior to starting the
audit, all significant trial
balance accounts should
be reconciled, and you
should double-check that
the supporting docu-
mentation agrees with the trial balance accounts. This is a great opportunity to make sure you have the necessary internal control procedures in place, and may present an opportunity for improvement. To prevent a delay in the audit, the earlier you can start your year-end closing process and reconciliation of accounts, the sooner you can review the audit sup- port for potential errors before handing documents over to the auditors.
Compliance Requirements
The level of compliance requirements you have to adhere to depends on the funding your organization receives (state, federal, grants, or donations). A best practice would be to review your funding sources and determine the compliance requirements needed
additional audit testing to be performed and addi- tional time incurred by the auditor. It’s best to review all funding sources on a regular basis and communi- cate any changes with your auditors.
Bottom Line
Once you invest your time and try these best prac- tices, you’ll be able to develop your own processes throughout the year, keep the information organized, and be ready for your next audit. v
Chelsea Russell, CPA is a manager at the Holyoke-based accounting firm Meyers Broth- ers Kalicka, P.C.
Collectively, we can all agree that the audit process should be quick
and easy, but we often face audits that never seem to end.”
MassDevelopment Bond Helps Gándara Buy, Renovate New Offices
SPRINGFIELD — MassDevelopment has issued a $4.3 million tax-exempt bond on behalf of Gándara Mental Health Center Inc., which used the proceeds to buy and renovate a 13,200-square-foot office building at 933 East Columbus Ave. in Springfield.
The organization will relocate its corporate offices from West Springfield into the new, larger building, where it can meet increased demand for its innovative, culturally competent behavioral-health, prevention, and education services that promote the well-being of Hispanic, African-American, and other culturally diverse populations. Gándara’s services include outpatient mental-health and sub-
stance-abuse treatment for underserved communities, as well as residential and preventative services for children, adults, and families throughout Massachusetts.
The organization recently began renovations and expects to move into the facility by late spring 2022. Westfield Bank purchased the bond, which will also be used to refinance previously issued debt.
“By supporting organizations like Gándara that are enhancing access to im- portant services, we can also help improve the social and economic well-being for all members of the community,” said Hous- ing and Economic Development Secretary Mike Kennealy, who chairs MassDevelop- ment’s board of directors. “MassDevelop-
ment has a long history of working with nonprofit organizations looking to buy facilities, add equipment, and expand services, and I want to congratulate all of those involved for making the kinds of investments that strengthen the capacity for organizations like Gándara to carry out their mission.”
MassDevelopment President and CEO Dan Rivera noted that “MassDevelopment is proud to help Gándara Mental Health Center, Inc. finance its new corporate offices in the Gateway City of Springfield that will help meet growing demand for the organization’s services. As we rebuild from the impacts of COVID-19, it’s more important than ever that people from all
backgrounds have access to affordable mental- and behavioral-health resources in their community.”
Westfield Bank Vice President and Commercial Loan Officer Wayne Webster added that “Gándara Center and its staff engage in important work daily to provide culturally sensitive care to those in need, and Westfield Bank is pleased to collabo- rate with the agency to fund the acquisi- tion of its new headquarters. The location at the gateway to Downtown Springfield will allow the agency to consolidate services under one roof and be more ac- cessible to the clients it serves.”
28 WWW.HEALTHCARENEWS.COM MARCH/APRIL 2022