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MindBridge not-for-profit library: General ledger

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Summary

The MindBridge not-for-profit library supports workflows to easily surface relative risk summarization and analytical insight for specific programs, including industry-specific ratios.

Not-for-profit: Account grouping

This library uses the MindBridge Account Classification (MAC) code system, which has been expanded to include not-for-profit concepts such as contributions and grants. 


Not-for-profit: Ratios

This library contains the following predefined ratios.

Ratio Formula Description Financial statement
Activity

Repairs and maintenance as a % of property, plant and equipment

5210 Repairs, maintenance, and upgrades expense, Cumulative YTD Activity * 365 / Days in YTD period / 1116 Property, plant and equipment (PP&E), Calculated Ending Balance + 1113 Lease and right-of-use assets, Calculated Ending Balance

This ratio compares the amount of repairs and maintenance to the overall amount of plant, property, and maintenance. An increase or decrease in this ratio may indicate unusual amounts being spent on repairs and maintenance or changes in the amounts of plant, property and equipment. 

IS & BS

Profitability

Operating Reserve

([Current assets + Capital assets + Grants receivable] / Expenses)

This ratio helps identify whether or not your client’s resources are sufficient and flexible enough to support their mission without borrowing externally. It also measures an organization's ability to fund programs and other expenses using expendable net assets, should no additional operating revenue be available. BS
Change in Net Assets 4000 Revenue, Activity - 5000 Expenses, Activity / 1 Measures an organization’s financial performance by answering the question, "Did the organization live within its means during the fiscal year?" While an organization's success shouldn't be judged by a positive or negative change in net assets over one year, consecutive deficits could be a cause for concern. IS
Operating Margin 4000 Revenue, Activity - 5000 Expenses, Activity / 4000 Revenue, Activity This is a great forecasting ratio as it measures a not-for-profit’s ability to produce a potential surplus, which could be drawn on if needed in future years. IS

 


Not-for-profit: Filters

This library includes 14 predefined filters made to help you narrow your search results when viewing an engagement’s transactions in the Data table dashboard. 

Using various combinations of control points, accounting standards, and the auditor's professional judgement and understanding of the business, the following filters can be strong indicators of activity that falls outside the normal course of business. 

You can also create your own filters tailored to your clients' needs.

Note: Filtering on a control point via the filter builder will return entries or transactions that triggered that control point.
Filter name Filters on Description

Additional assurance filters

High Impact Outlier

High control point score for:

Material Value and Rare Flow

This filter finds entries or transactions that do not occur regularly in the dataset, with a net effect greater than the Material Value threshold as defined in the control point settings.

MindBridge AI Journal Entry Testing

High control point score for:

Manual Entry and Material Value and (Outlier Anomaly v.2 or Outlier Anomaly v.2.1)

The filter finds outlier entries or transactions containing keywords indicating manual entry into the ledger, with a net effect greater than the Material Value threshold as defined in the control point settings.

 

Unusual Transactions

High control point score for:

Flow Analysis

This filter can help identify anomalous movements of money when compared to normal business practices.

Purchasing cycle filters
Cost of Goods Sold

Account is:

5100 Cost of goods and services sold

This filter finds entries or transactions that belong to accounts related to cost of sale.

Note: The integrity of this filter relies on accurate account grouping and account mapping.

Expenditure

Account is:

5201 Employee-related expense (wages, benefits, etc.) or 5202 General and administrative expense or 5203 Research and development costs or 5204 Advertising and promotion expense or 5207 Facilities/rental expense or 5208 Insurance expense or 5210 Repairs, maintenance, and upgrades expense or 5212 Travel expense or 5216 Business taxes and fees or 5229 Other/unspecified operating expense or 5300 Other expenses

This filter finds entries or transactions that belong to accounts related to expenditure.

Note: The integrity of this filter relies on accurate account grouping and account mapping.

Payroll Transaction

Account is:

5201 Employee-related expense (wages, benefits, etc.)

This filter finds entries or transactions that belong to accounts related to payroll transactions.

Note: The integrity of this filter relies on accurate account grouping and account mapping.

Repairs and Maintenance Review

Account is:

5210 Repairs, maintenance, and upgrades expense

This filter finds entries or transactions that belong to accounts related to repairs and maintenance review.

Note: The integrity of this filter relies on accurate account grouping and account mapping.

Revenue filter

Reversed Revenue or Reversal of Revenue

Increasing credits in: 4000 Revenue

or

Increasing debits in: 4000 Revenue

and

High control point score for:

Reversal or Reversed

This filter finds entries or transactions that are a credit or debit to revenue, and that are flagged as either a reversal or a reversed entry.

When you import a general ledger, MindBridge updates the account tags based on MAC codes related to revenue (i.e., all online revenue, wholesale revenue, etc.)

Revenue

Account is:

4100 Operating Revenue

This filter finds entries or transactions that belong to accounts related to revenue.

Note: The integrity of this filter relies on accurate account grouping and account mapping.

Standard filters
Transactions Near Analysis Period End

High control point score for:

End of Analysis Period or Start or Analysis Period

This filter finds entries or transactions that occurred within the first or last 10 days of the analysis period.

Transactions Near Reporting Period End

High control point score for:

End of Reporting Period or Start of Reporting Period

This filter finds entries or transactions that occurred within the first or last 10 days of the reporting period.

Manual Transactions Near Analysis Period End

High control point score for:

End of Analysis Period or Start or Analysis Period

and

Manual Entry

This filter finds entries or transactions that occurred within the first or last 10 days of the analysis period, and that contain keywords indicating manual entry into the ledger.

Manual Transactions Near Reporting Period End

High control point score for:

End of Reporting Period or Start of Reporting Period

and

Manual Entry

This filter finds entries or transactions that occurred within the first or last 10 days of the reporting period, and that contain keywords indicating manual entry into the ledger.

Material Transactions Near Analysis Period End

High control point score for:

End of Analysis Period or Start or Analysis Period

and

Material Value

This filter finds entries or transactions that occurred within the first or last 10 days of the analysis period with a net effect greater than the Material Value threshold as defined in the control point settings.

Material Transactions Near Reporting Period End

High control point score for:

End of Reporting Period or Start of Reporting Period

and

Material Value

This filter finds entries or transactions that occurred within the first or last 10 days of the reporting period with a net effect greater than the Material Value threshold as defined in the control point settings.

 


Not-for-profit: Risk scores

This library contains 3 assertion risk scores, the overall MindBridge score, and lists the rule-based, statistical, and machine learning control points within each assertion.

*In addition to the 32 rules-based, statistical, and machine learning control points included in the overall MindBridge score, Expense Flurry has been added to the MindBridge score in the not-for-profit library.

 


Program support

During the column mapping process, you can identify relevant Programs available in the transactional data, and enable them for filtering and data interrogation throughout the analysis.

Additionally, when Programs are mapped successfully, a Statement of Functional Expenses becomes available as an Excel report, which breaks down all expenses in the ledger across their respective Programs.


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