Supreme Court to Review Case on Affirmative Action in College Admissions
In late June, the U.S. Supreme Court agreed to hear its second case in three years concerning the constitutionality of considering a student’s race and ethnicity in college admissions. Beginning later this fall, the case focuses on the college admissions practices at the University of Texas at Austin, which gives justices an opportunity to limit or ban the consideration of race in such instances. While affirmative action supporters praise the Supreme Court’s decision to review the case, many legal observers are worried due to the current justices’ voting record on government policies involving race. For the full story , please visit the Inside. Read More.
Gates Foundation Supports FAFSA Simplification
Two months after Senator Lamar Alexander (R-Tenn.) introduced legislation to simplify the 108-question FAFSA application form, the Bill & Melinda Gates Foundation (“the Foundation”) announced plans to be more proactive in higher education policy discussions. Signifying its first action since the March announcement, the Foundation has published a white paper favoring a redesigned FAFSA form to make it easier for students to receive college loans and grants from the federal government. Reflecting the concerns of numerous groups and policy makers, the Foundation said the existing application process is complicated, redundant and ill-timed. As an alternative, the white paper says students should face. Read More.
Final 2015 Circular A-133 Compliance Supplement Released
After issuing the draft version last month , the White House Office of Management and Budget (“OMB”) has released the final 2015 Circular A-133 Compliance Supplement. Although the draft version was only available for planning purposes, the final 2015 Compliance Supplement is available for use by practitioners. Replacing the OMB Circular A-133 Compliance Supplement published in March 2014, the 2015 edition impacts fiscal years starting after June 30, 2014. Updates from the 2014 Circular A-133 Compliance Supplement are listed under Appendix V of the 2015 Compliance Supplement. For assistance on using the 2015 Circular A-133 Compliance Supplement, Cherry Bekaert’s Nonprofits and Education industry groups. Read More.
Linsmeier Defends Proposed FASB’s Not-for-Profit Accounting Changes
Attended by Cherry Bekaert’s Russell Coleman , Melisa Galasso and Karen Walker , the American Institute of Certified Public Accountants’ Not-for-Profit Conference provided the Financial Accounting Standards Board (“FASB”) a platform to further discuss its proposal for updating nonprofit financial reporting requirements. While nonprofit organizations generally support Proposed Accounting Standards Update (ASU) No. 2015-230, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, several attendees at the June 15th conference were underwhelmed at the FASB’s lack of attention to criticism concerning parts of the proposal. Particularly, FASB Chairman Russell Golden and Vice Chairman James Kroeker disagreed on changes. Read More.
Draft of 2015 OMB Compliance Supplement Issued
Now available for download on the American Institute of Certified Public Accountants’ website is the Draft 2015 Circular A-133 Compliance Supplement (Draft 2015 Supplement). Released by the White House Office of Management and Budget (“OMB”), the Draft 2015 Supplement is intended for auditors when planning audit engagements. While the draft is limited to audit planning purposes, the provision could change when made final. The final version is expected to be released by the end of June. For more information on the Draft 2015 Supplement, the experienced professionals of our Nonprofits and Government Services Group are available to assist.
AICPA Audit and Accounting Guide Revised
Reflecting the Financial Accounting Standards Board’s (“FASB”) proposed one-year deferral of its revenue recognition standard’s effective date, the American Institute of Certified Public Accountants’ Audit and Accounting Guide (Guide) for nonprofit organizations has been updated. Along with the FASB’s proposal, the Guide addresses reporting donated services among affiliated nonprofits, investment asset pledges by split-interest agreement donors, charitable gifts, and grants.