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MindBridge not-for-profit with funds library: General ledger

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Summary

The not-for-profit with funds library supports workflows leveraging fund and program accounting. If you capture fund or program details within your workflow, this is the library to use, as it includes ratios and control points specific to not-for-profit accounting, such as the Liquid Funds Amount and Fund Expense Flurry.

Not-for-profit with funds: Account grouping

We have extended the scope of the MindBridge Account Classification (MAC) system to facilitate not-for-profit concepts such as contributions and grants.

Not-for-profit with funds: Ratios

Ratio Formula Description Financial statement
Activity
Repairs and maintenance as a % of property, plant and equipment (Repairs and maintenance / Plant, Property and Equipment)

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. 

 BS
Liquidity
Defensive Interval ([Cash + Marketable Securities + Receivables] / Average Monthly Expenses) Reflects the number of months an organization could operate if no additional funds were received. BS
Liquid Funds Amount (Dollar Value of Unrestricted Net Assets – Net Fixed Assets + Mortgages and Other Notes Payable) Provides a common size value that quantifies your client’s unrestricted liquid dollar amount available to meet current obligations. BS
Current Ratio (Current Assets / Current Liabilities) Measures an organization's ability to meet short-term financial obligations by comparing an organization’s current assets to current liabilities. BS

Profitability

Operating Reserve

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

 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 (Revenue – Expenses) 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. BS
Operating Margin ([Revenue – Expenses] / Revenue) 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. BS

Not-for-profit with funds: Filters

In addition to the 14 the not-for-profit library filters, this library adds 4 filters specific to not-for-profit with funds accounting in order 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 Order

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

Manual Entry 

and

Material Value

and

Outlier Anomaly v.1

or

Outlier Anomaly v.2

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

Flow Analysis

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

Not-for-profit with fund filters

Cash Expenditures - Unrestricted Fund

Fund Restriction: Unrestricted Funds

and

Cash Expenditure

This filter finds any credit entries to unrestricted cash expenditure fund accounts (cash or cash-equivalents).

Cash Expenditures - Restricted Fund

Fund Restriction: Restricted Funds

and

Cash Expenditure

This filter finds any credit entries to restricted cash expenditure fund accounts (cash or cash-equivalents).

Reallocation of Amount - Between Fundraising, Program & GA Fund Expense Allocation

Interfund Transfer

This filter finds transactions in which one fund’s assets are credited, and another fund’s assets are debited. The result is a net movement of assets from one fund to another.

Fund Expense Allocation

Split Expense (Multi-transaction)

or

Split Expense (Single transaction)

This filter finds entries or transactions that may result from a single expense being split across different funds within a single transaction, or from a single expense being split across multiple funds and posted to a general ledger as multiple transactions.

Purchasing cycle filters

Expenditure

Account: Unspecified expenses

or 

Account: Advertising and promotion

or 

Account: Insurance expense

or 

Account: Professional fees

or 

Account: Rental expense

or 

Account: Repairs, maintenance, and upgrades

or 

Account: Supplies

or 

Account: Travel expense

or 

Account: Utilities

or 

Account: Unspecified expenses

or 

Account: Unspecified business tax/licence/membership

or 

Account: Business membership

or 

Account: Franchise fees

or 

Account: Government fees

or 

Account: Sub-contracts

or 

Account: Crew share expense

or 

Account: Unspecified operating expenses

or 

Account: Unspecified computer-related expenses

or 

Account: Data processing

or 

Account: Unspecified office expenses

or 

Account: Cash over/short

or 

Account: Reimbursement of parent company expense

or 

Account: Selling expenses

or 

Account: Shipping and warehouse expense

or 

Account: Delivery, freight, and express

or 

Account: Warranty expenses

or 

Account: Royalty expenses

or 

Account: Dumping charges

or 

Account: Land fill fees

or 

Account: Vehicle expenses

or 

Account: Research and development

or 

Account: General and administrative expenses

or 

Account: Interdivisional expenses

or 

Account: Income tax expense

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: Employee benefits

or 

Account: Employers' portion of employee benefits

or 

Account: Payroll taxes

or 

Account: Unspecified salaries and wages

or 

Account: Employee salaries

or 

Account: Management salaries

or 

Account: Directors' fees

or 

Account: Commissions

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: Repairs, maintenance, and upgrades

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 Account Tags Revenue

or

Decreasing Account Tags Revenue

and

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: Unspecified revenue

or

Account: Main business income

or

Account: Trade sales of goods and services

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

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 Period End

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

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 Period End

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

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 Period End

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 with funds: 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, 4 control points have been added to the MindBridge score in the not-for-profit with fund library.

Anything else on your mind? Chat with us or submit a request for further assistance.

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