In December 2013, the Office of Management and Budget (OMB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (known to many as the “Super Circular” or the new Uniform Grant Guidance) to streamline and consolidate grants guidance previously contained in numerous documents. These changes will impact all entities receiving and administering federal awards, as well as auditors responsible for auditing federal awards programs. The Super Circular contains the most significant changes to occur to federal grants administration in recent history.
This paper provides an overview of the requirements of the Uniform Guidance (UG) as applicable to a typical nonprofit affordable housing developer and related organizations. It also addresses questions raised by the Strength Matters CFO Working Group pertaining to practical implementation issues.
The new accounting and auditing guidance covers the following topics:
- Prior updates effective in the current year
- Goodwill impairment
- Consolidation guidance for NFPs
- Definition of a business
- Going concern
- Pension costs
- Uniform guidance (Financial discussion paper on UG available here.)
- Revenue recognition of grants and contracts
- Land easements
- Proposed auditors’ report changes
- Not-for-Profit Advisory Committee highlights
Read the paper here and watch the webinar here.
Join Strength Matters for our annual “must read” webinar for nonprofit affordable housing CFO’s, COOs and lenders outlining the significant accounting standards that changed in 2017.
Dave Conway of Novogradac will explain and discuss the status of several FASB projects currently in process and what to be planning for in the next year.
Register here for the January 24, 2018 at 2PM (ET) webinar.
The third paper in our Financial Discussion series dives into guidance on eliminating developer fees in consolidated financial reporting.
Under current accounting guidelines, developer fees are eliminated when preparing consolidated financial statements.
– How should the developer eliminate the profit realized on the developer fees?
– How should the developer determine the profit and does it matter if the developer fee is deferred?
– Should only the deferred fee be eliminated and not the fee paid from third party sourced debt and investor equity?
Presenter, Dan King of CohnReznick, will discuss the recent Strength Matters publication Avoiding Tax-Exempt Use Property in Credit Deals – The IRC §168(h) Election.
- Understand how property characterized as tax-exempt use could negatively impact low-income housing tax credit or historic tax credit deals
- Learn how tax-exempt general partners can use a “blocker” corporation to avoid the taint of a tax-exempt use property and understand the tax consequences
- Learn about the elections required to use a “blocker” corporation to avoid the taint of the tax-exempt use property
- Learn about the critical timing considerations for making the elections required to use a “blocker” corporation
Join us on Wednesday, December 6, 2017 2:00-3:00 PM Eastern Time. Register in advance for this webinar here: https://zoom.us/webinar/register/WN_e0MzHnAhSY2Fc3v1atOyyw
Presenter, Dan King of CohnReznick, will discuss the recent Strength Matters publication Partnership Allocations for Low-Income Housing Tax Credit Deals – An Introduction to IRC §704(b).
Join us on Wednesday, November 15, 2017 2:00-3:00 PM Eastern Time. Register in advance for this webinar here: https://zoom.us/webinar/register/WN_e0MzHnAhSY2Fc3v1atOyyw
The second paper in our Financial Discussion series looks at two questions around the sale of real estate between related entities:
Covering GAAP analysis of the questions, CPA recommendations and CFO response
Read the new Financial Discussion paper