Challenge:
The school needed to provide audited financial statements to large potential donors and foundations as part of the capital campaign kick-off efforts. In order to accomplish this, the entire accounting and internal control systems had to be revamped. The school had previously operated primarily on a cash basis, lacking certain imperative accounting policies and procedures. Since the school was looking to overhaul the entire accounting system, it was imperative that they team up with an accounting firm that really understood the operations, accounting systems and functions of nonprofits and, more specifically, private schools.
Solution:
The AMLLP team assisted the school in re-engineering its accounting policies and procedures, including a full historical-to-date cash-to-accrual conversion that allowed the school to be audited in accordance with Generally Accepted Accounting Principles. The full cash-to-accrual conversion included the creation of a historical fixed asset register accounting for assets from as far back as 20-30 years. AMLLP also assisted the school in redesigning its internal control environment to provide for a more appropriate level of internal controls and safeguarding of school assets. This included:
- Redesigning various cash receipt and disbursement processes
- Redesigning development/fundraising processes
- Implementing bank disbursement and wire transfer controls
- Implementing fraud policies
Result:
Under the guidance of AMLLP, the school completed a full general ledger conversion that now provides an appropriate FAS 116 and 117 platform to maintain appropriate accounting records and facilitate accurate financial reporting. The AMLLP team also assisted the school with its software needs, including Blackbaud's Financial Edge and Raiser's Edge conversions and training. AMLLP's experience in implementing and supporting over 75 private schools with accounting software services allowed the team to get the school's accounting software and employees up to speed and producing the information they needed to run their capital campaign.
With a re-engineered accounting system and annual audited financial statements, Cardinal Newman High School is properly positioned to conduct a highly successful capital campaign. The school was named as one of the nation's Top 50 Catholic high schools by the Catholic High School Honor Roll. The Top 50 list serves as a resource for students, parents and benefactors and promotes quality Catholic secondary education.