California Community Colleges Reject Tuition-Free Plan
Amid concerns about high default rates, several California community colleges are rejecting the state’s plan that offers in-state students one year of free tuition. California awards community colleges free tuition aid for participating in the plan, but institutions like Barstow College and Imperial Valley College disagree with the mandate requiring participation in the federal student loan program. The San Bernardino district referenced the recent high federal loan default rate among borrowers at its colleges for rejecting participation in the tuition-free plan. Meanwhile, California Community College system officials oppose the move and believe colleges that aren’t taking part in the federal. Read More.
FASB Proposes Extending Goodwill and Identifiable Intangibles Alternatives to Nonprofits
A recently proposed Accounting Standards Update (“ASU”) aims to help nonprofits account for goodwill and calculate certain identifiable intangible assets. Proposed ASU No. 2018-320, Intangibles-Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, extends an accounting alternative from the Private Company Council that allows nonprofits to amortize goodwill over 10 years or less on a straight-line basis. Nonprofits could also use the accounting alternative to test for impairment upon a triggering event, opt for an impairment test at the. Read More.
Seven Maine Hospitals to Merge Next Year
In a move similar to independent hospitals across the U.S., seven hospitals in Maine are consolidating into a single nonprofit entity. Effective January 1, 2019, MaineHealth will consist of the following hospitals: Maine Medical Center (Portland, ME) Biddeford-based Southern Maine Health Care (Biddleford, ME) LincolnHealth (Damariscotta, ME, and Boothbay Harbor, ME) Coastal Healthcare Alliance (Rockport, ME) Western Maine Health (Norway, ME) Franklin Community Health Network (Farmington, ME) Maine Behavioral Healthcare in (South Portland, ME) Declining revenue, insufficient healthcare staff and mounting costs were reasons given for the merger. MaineHealth will be governed by a board of trustees, include over 19,000. Read More.
Software Company Lists Mistakes to Avoid When Implementing Leases Standard
LeaseCrunch, an accounting software company specializing in helping clients with the Financial Accounting Standards Board’s (“FASB”) lease accounting standard, has highlighted the five mistakes companies are making when implementing FASB Accounting Standards Codification (“ASC”) Topic 842, Leases. Some of the mistakes involve not setting aside enough time to analyze real estate leases, overlooking hidden leases, and being unaware of the impact the standard will have on business. Visit the LeaseCrunch website for more on advice on implementing FASB ASC 842. In addition, Cherry Bekaert has selected LeaseCrunch as the software platform to use for assisting clients transitioning to the new lease accounting standard. Learn more in the official press release.
Gender Pay Gap among CEOs Still Wide at Nonprofits
GuideStar’s latest compensation report on those in the chief executive officer position continues to reflect the results from previous years. According to the nonprofit reporting company, the nonprofit gender pay gap for those in the CEO role remains large at higher-end organizations. The gender pay gap is highest among nonprofits with budgets over $10 million. Additionally, nonprofits with budgets over $50 million have a pay gap of 20 percent. GuideStar also discovered that in the top budget band of nonprofits, men CEOs received pay increases nearly twice more (8.4 percent) than women CEOs (4.9 percent). More on GuideStar’s report is available in the Nonprofit Quarterly article. If your nonprofit needs accounting. Read More.
Buffalo Nonprofit Penalized for HIPAA Breach
A breach of patient privacy earlier this year will cost the Arc of Erie County $200,000. The Buffalo-based nonprofit discovered in February that clients’ electronic personal health information was published on its website. While the Arc of Erie County said the website was for internal use only, the exposed ePHI is considered a violation of the Health Insurance Portability and Accountability Act (“HIPAA”). The organization must now provide a risk analysis, evaluate its policies and procedures, and present its findings to the New York attorney general’s office. Find out more about the Arc of Erie County’s data breach on the Nonprofit Quarterly website.