Local government finance departments are frequently asked to evaluate the financial stability of nonprofit organizations. This could be nonprofits that the government is already working with, or to which it is considering making a grant.
In such cases, the finance department should evaluate the nonprofit organization’s financial condition. It is wise to answer questions, such as ‘is the nonprofit strong enough financially to continuously operate for at least the time specified in the contract?,’ before starting a working relationship or providing funds to the nonprofit.
The same questions should be answered for companies that a government is working with or considering working with, such as software vendors, franchisees or construction contractors.
Read below on how to effectively evaluate a nonprofit organization’s financial health.
As mentioned in our last blog post, the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) introduced a new requirement for entities that pass federal funds (“pass-through entities”) to non-profit entities or other governments, to monitor those subrecipients.
We provided a list of terms and definitions related to subrecipient monitoring in part one of our subrecipient monitoring mini blog series.
Below, we go over what the Uniform Guidance’s requirement entails, and how to structure your subrecipient monitoring accordingly.
The Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) made it a requirement for any entity that passes federal funds (the “pass-through entity”) to non-profit entities or other governments to monitor those subrecipients.
In this blog post below, we explain and define major terms regarding subrecipient monitoring and its related procedures.
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