Archive for the ‘Industry News’ Category
by Brandon Cook, CPA | Partner, Tax Services Group and Member of the Construction Services Group
In all businesses everyone knows that cash is king. This is especially true in the construction industry. In the new reality of tight margins, high retainage percentages, and slow-paying contracts, every bit of cash a contractor can get their hands on can be vital to a company’s operations. The look-back calculation, which is required for many contractors, could put more cash into your pocket.
Continue reading “Contractors – You May Have to Look-Back” »
by Anita Sherman, CPA and John Fisk | Team Members of the Manufacturing & Distribution Services Group
There has been a lot of discussion recently about this proposed legislation. If you have an opinion, now is the time to share it with your senator and representative.
In an article entitled “Indiana: Where We’ve Been and Where We’re Headed,” Patrick Kiely, President of the Indiana Manufacturers Association, reflects on Indiana’s status as a non-right-to-work state. Including Indiana, there are 28 states “that allow labor unions to compel, as a condition of employment, individual employees to become union members or pay union fees in lieu of membership, regardless of whether or not that person wants to join a union.” This issue is at the forefront of conversation as the 2012 Indiana General Assembly reconvened on January 4th.
Continue reading “Right to Work – 2 Sides to Every Coin” »
by Jennifer McVey, CPA | Manager, NFP Services Group and Amanda Meko, CPA | Partner and Team Leader of the NFP Services Group
In a downturned economy, in which donations to nonprofits are difficult for both individuals and organizations to make, being accountable carries more weight than ever. A nonprofit must not only conduct business ethically and transparently but also be able to publicly explain at all times the way it handles its finances and governance. Your nonprofit can meet this challenge if you understand the key areas of accountability and your board’s role.
Continue reading “Accountability – Your Public is Calling” »
by Tim Ayler, CPA and Alicia Rader, CPA | Team Members of the Construction Services Group
Many contractors equate success to winning bids. While that certainly is partially true, there are several other factors which determine how successful the bidding process really is. As of late, many contractors are putting less markup in their bids in order to be more competitive and to increase their chances of winning the work. Others are struggling to win bids so they are expanding their geographic boundaries or bidding on types of work that they have not successfully completed in the past. Whatever your construction company is doing to win bids, we hope it has contributed to your company’s profitability.
Continue reading “Bid-Hit Ratios and How They Apply to Contractors” »
by Heather Phillips, CPA and Amanda Meko, CPA | Team Members of the Not for Profit Services Group
Does your not-for-profit receive funding from the State of Indiana? If so, are you aware of your annual filing requirement with the State for these funds?
Nongovernmental organizations receiving financial assistance from governmental sources in the form of grants, contracts, subsidies, contributions, reimbursements, or loans are required by Indiana Code (IC 5-11-1-4) to file an Entity Annual Report (Form E-1) with the Indiana State Board of Accounts. This is a separate filing from the Secretary of State’s Business Entity Report, which is annually sent to the Secretary of State’s office with a filing fee of $10. A link to the Form E-1 can be found at http://www.in.gov/sboa/3104.htm.
The Entity Annual Report must be completed and submitted to the State Board of Accounts within 60 days of year-end. The State Board of Accounts uses the information reported on the E-1 to determine the state audit and reporting requirements placed on an organization by Indiana Code 5-11-1-9. Shortly after the E-1 is filed, an organization will be notified if a state audit is required or if the organization qualifies for a waiver from a state audit. An organization may be asked to supply additional financial information before a final waiver determination made via letter is granted.
An organization should report as “governmental funds” on the E-1 all cash received from any state or local government. These funds may be direct awards of state and local monies or they may include federal funds that are “passed-through” state or local agencies. Direct federal financial assistance should not be reported on the E-1. Also, non-federal funding arrangements that are considered “purchase of service” agreements should not be reported on the E-1. “Purchase of service” agreements, or vendor-type contracts, are those were an organization is being reimbursed on a “per diem” or “per unit” rate for services provided by the organization. It is important to distinguish “per diem” and “per unit” reimbursement-type agreements from those where a government unit contracts with an organization to provide services for a flat fee or contract amount. These latter agreements are not considered “purchase of service” agreements and should be included on the E-1.
While the E-1 is not an overly long or complex form to complete, many organizations – particularly small not-for-profits or those receiving government funding for the first time – neglect to file this report. Failure to timely file this form may threaten future government financial assistance that is important to an organization. If you have a question about the form or your organization’s need to file, please contact us. We’d be happy to help you “fall” into place with this state requirement!
by Brandon Cook, CPA | Partner, Tax Services Group and Member of the Construction Services Group
The IRS has once again postponed the effective date on the implementation of mandatory 3% withholding on payments to businesses that contract with the federal, state, and/or local government entities. The effective date is now for payments made after December 31, 2012.
Continue reading “Update on Withholding on Government Contracts” »
by John Keller, CPA and Amanda Meko, CPA | Team Members of the Not-for-Profit Services Group
Sponsorships can be mutually beneficial to both the organization and its sponsor. The organization gets funding for its event while the sponsor can use the event as a platform to gain more public exposure. The sponsor can have its name, logo, website address or telephone number prominently displayed at the event and even can sell its products at the event (as long as sales are not conducted by the organization itself).
The written sponsorship agreement sets the terms of payment and the obligations the organization has to fulfill in recognizing the sponsor. If the terms satisfy the IRS rules for Qualifying Sponsorship Payments (QPS) then none of the revenue generated will be considered Unrelated Business Taxable Income (UBTI).An organization, however, must carefully consider what it is promising to perform in the sponsorship agreement as the line between QSP and UBTI can be blurry.
Continue reading “When Does Sponsorship Income Become Advertising?” »
by Brian Enright, CPA and Tim Ayler, CPA | Team Members of the Construction Services Group
By most accounts an iPad (or any PC tablet) is considered an entertainment device or simply a convenient, portable way to check email on a business trip. However, with new construction-based applications and tough protection cases, the iPad is showing that it too belongs on the jobsite.
Continue reading “How an iPad or PC Tablet can Boost Productivity on the Jobsite” »
by Abbey Lakin and Amanda Meko, CPA | Team Members of the Not-For-Profit Services Group
On June 8, 2011 the IRS announced that approximately 275,000 organizations automatically lost their tax-exempt status because they failed to file an annual return or an electronic notice (Form 990-N e-postcard) for 2007, 2008, and 2009.
Continue reading “Guidance for Tax Exemption Reinstatement” »
by Amanda Meko, CPA | Partner, Director of the Audit & Other Assurance Services Group | Team Leader of the NFP Services Group
Many organizations don’t consider their fundraising programs large enough to need a gift acceptance policy. However, even if your charity has not received an unusual gift offer yet, it is probably just a matter of time. Rejecting gifts can be awkward, particularly when there is no structured policy to follow. Having a gift acceptance policy can help guide you in a meaningful donor discussion, one that results in a gift that is beneficial to both your organization and the donor.
Continue reading “Do You Have a Gift Acceptance Policy?” »