Read about the most important changes affecting not-for-profit accounting regulations.
For the past year, a major proposed change by the Department of Labor (DOL) to the Fair Labor Standards Act’s (FLSA) exemptions from overtime has been making its way through
the judicial system. The new rule, which deals with overtime exemption salary thresholds (the “salary level”), is currently under injunction per a Texas federal court. Regardless of if or when it goes into effect, however, this rule and other wage-hour issues are critical areas of risk, and nonprofit leaders should be paying close attention to changes at the national, state and even county and municipal levels.
Within the last few years the Financial Accounting Standards Board (FASB), the rule-making body that approves all changes to Generally Accepted Accounting Principles (GAAP), has issued several major accounting and reporting revisions that affect every Not-For-Profit organization in the country.
Over the years there has been a lot of confusion about whether to treat certain types of transactions as contributions or as exchange transactions especially when it involves government grants. There has been further confusion if the transactions include donor-imposed dictates called restrictions or conditions. Many people including accountants don’t always know the difference between a restriction or condition and how to treat a transaction that has one or the other or both elements.