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
- 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
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 |
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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.
Filter name |
Filters on |
Description |
Additional assurance filters |
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---|---|---|
High Impact Order |
and |
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 |
and and or |
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 |
This filter can help identify anomalous movements of money when compared to normal business practices. |
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Not-for-profit with fund filters |
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Cash Expenditures - Unrestricted Fund |
Fund Restriction: Unrestricted Funds and |
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 |
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 |
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 |
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 |
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Reversed Revenue or Reversal of Revenue |
Increasing Account Tags Revenue or Decreasing Account Tags Revenue and or |
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 |
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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.
- Asset assertion scores
- Liabilities and equity assertion scores
- Overall scores*
- Profit and loss assertion score
*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.
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