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
- Not-for-profit with funds: Ratios
- Not-for-profit with funds: Filters
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Not-for-profit with funds: Control points
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
This library contains the following predefined ratios by default. Learn more about managing ratios in the library settings.
Note: The inclusion of -1 * in the formulas below results in the conversion of negative credit account balances into positive account balances for proper ratio presentation.
| Ratio | Formula | Description | FS |
|---|---|---|---|
| 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 |
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Going concern |
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Interest Coverage Ratio |
4100 Operating revenue, Activity + 5100 Cost of goods and services sold, Activity + (5200 Operating expenses, Activity - 5217 Interest expense and bank charges, Activity) / 5217 Interest expense and bank charges, Activity |
This ratio measures the company's ability to pay interest on its outstanding debt. It's calculated using operating profit, which is also known as earnings before interest and taxes (EBIT). This provides a clearer view of the company's operational efficiency and its capacity to cover interest expenses independently of its tax strategy and capital structure. | IS |
| Liquidity | |||
| Defensive Interval | 1101 Cash and cash equivalents, All, Ending balance + (1102 Trade receivables, Ending balance – 1103 Allowance for doubtful accounts [contra], Ending balance) / (52003 Operating expenses, All, Ending balance – 5206 Depreciation and amortization expense, All, Opening balance) * Days in period | Reflects the number of months an organization could operate if no additional funds were received. | BS |
| Liquid Funds Amount | 3406 Unrestricted, All, Ending balance + ( 1116 Property, plant and equipment (PP&E), Ending balance – 1117 Accumulated depreciation on PP&E (contra), Ending balance – 1118 Accumulated impairment on PP&E (contra), Ending balance) + 2302 Debt and borrowings, All, Ending balance / 1 |
Provides a common size value that quantifies your client’s unrestricted liquid dollar amount available to meet current obligations. | BS |
| Current Ratio | 1101 Cash and cash equivalents, Ending balance + 1102 Trade receivables, Ending balance + 1103 Allowance for doubtful accounts (contra), Ending balance + 1104 Contract assets, Ending balance + 1105 Contract assets— allowance for impairment (contra), Ending balance + 1106 Inventory—general, Ending balance + 1107 Inventory—materials and supplies, Ending balance + 1108 Inventory—work in progress, Ending balance + 1109 Inventory—manufactured finished goods, Ending balance + 1110 Inventory—purchased finished goods, Ending balance + 1111 Inventory reserve (contra), Ending balance + 1112 Deferred costs and prepaid expenses, Ending balance / 2101 Trade payables and accrued liabilities, Ending balance + 2102 Contract liabilities, Ending balance + 2103 Payroll liabilities, Ending balance + 2104 Deferred revenue, Ending balance + 2201 Current tax liabilities, Ending balance + 2301 Interest and dividends payable, Ending balance + 2303 Bank deposit liabilities (banking entities), Ending balance + 2304 Bank overdraft, Ending balance + 2305 Credit card loans, Ending balance + 2306 Cheques and other items in transit, Ending balance *-1 | Measures an organization's ability to meet short-term financial obligations by comparing an organization’s current assets to current liabilities. | BS |
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Profitability |
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| Change in Net Assets | 4000 Revenue, All, Activity – 51000 Expenses, All, 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, All, Activity – 5000 Expenses, All, Activity / 4000 Revenue, All, 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. | 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.
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Filter name |
Filters on |
Description |
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Additional assurance filters |
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High Impact Outlier |
High control point score for: |
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. |
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MindBridge AI Journal Entry Testing |
High control point score for: |
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.
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Unusual Transactions |
High control point score for: |
This filter can help identify anomalous movements of money when compared to normal business practices. |
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NFP with fund filters |
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Cash Expenditures - Unrestricted Fund |
Fund Restriction: Unrestricted Funds and High control point score for: |
This filter finds any credit entries to unrestricted cash expenditure fund accounts (cash or cash-equivalents). |
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Cash Expenditures - Restricted Fund |
Fund Restriction: Restricted Funds and High control point score for: |
This filter finds any credit entries to restricted cash expenditure fund accounts (cash or cash-equivalents). |
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Reallocation of Amount - Between Fundraising, Program & GA Fund Expense Allocation |
High control point score for: |
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. |
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Fund Expense Allocation |
High control point score for: Split Expense (Multi-transaction) or |
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. |
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Purchasing cycle filters |
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Expenditure |
Account is: 5201 Employee-related expense (wage, 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. |
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Payroll Transaction |
Account is: 5201 Employee-related expense (wage, 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. |
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Repairs & 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. |
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Revenue filter |
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Reversed Revenue or Reversal of Revenue |
Increasing Credits in: 4000 Revenue or Increasing Debits in: 4000 Revenue and High control point score for: |
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. |
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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. |
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Standard filters |
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Transactions near Analysis Period End |
High control point score for: |
This filter finds entries or transactions that occurred within the first or last 10 days of the analysis period. |
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Transactions near Period End |
High control point score for: |
This filter finds entries or transactions that occurred within the first or last 10 days of the reporting period. |
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Manual Transactions near Analysis Period End |
High control point score for: End of Analysis Period or Start or Analysis Period and |
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. |
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Manual Transactions near Period End |
High control point score for: End of Reporting Period or Start of Reporting Period and |
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. |
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Material Transactions near Analysis Period End |
High control point score for: End of Analysis Period or Start or Analysis Period and |
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 threshold as defined in the control point settings. |
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Material Transactions near Period End |
High control point score for: End of Reporting Period or Start of Reporting Period and |
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 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.
- Asset assertion scores
- Liabilities and equity assertion scores
- Overall scores*
- Profit and loss assertion score
*In addition to the 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 funds library.
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