Riverway Risk Advisory

On this Veterans Day 2024, we at The Riverway Group extend our deepest gratitude to all the brave men and women who have served our country. Your courage, dedication, and sacrifice inspire us every day. We are proud to stand by you and support the veteran community. Thank you for your service.

Although this WSJ article is nearly a year old, it is still extremely relevant. The Accounting shortage is real and companies are citing a lack of skilled accounting personnel for material weaknesses in their financial-reporting controls, which is a key predictor of restatements. Outsourcing your Internal Controls over Financial Reports (ICFR) to a specialized firm like Riverway will mitigate your risk of financial misstatement in an efficient and cost effective manner. https://lnkd.in/gpq62FwP

Join us on Thursday, May 23rd for Community Teamwork's Champions of Community Action Spring Celebration - Commemorating 60 Years of Community Action! https://lnkd.in/g3QkvBNJ It is sure to be a wonderful event and celebration for such an amazing organization!

Internal Controls for Nonprofit Organizations Internal controls are financial management practices systematically used to prevent misuse and misappropriation of assets, such as theft or embezzlement. Such controls are typically described in written policies that outline procedures and assign responsibilities within the organization. The primary goal of internal controls is to create business practices that serve as “checks and balances” on staff, board members, and outside vendors, thereby reducing the risk of misappropriation of funds and assets. It is important to ensure that everyone in the organization understands how money flows through the nonprofit and that it’s adequately protected. Below are some examples of internal control policies that every nonprofit can implement: ?? Background Checks: Conduct background checks on employees handling money during hiring and periodically thereafter. ?? Cash Handling and Prompt Deposits: Keep cash in a locked drawer and promptly deposit cash and checks in the bank. ?? Two-Signature Requirement for Checks: Requiring two authorized signatures on a check helps prevent a single individual from having sole authority to write checks on behalf of the nonprofit. ?? Expense Reimbursement Approval: Employees should only be reimbursed for expenses that are pre-approved in writing. ?? Segregation of Duties: Separate individuals should handle tasks like logging checks received and depositing them. Similarly, the same person should not both prepare payroll and distribute payroll checks. ?? Vendor Review: Regularly review the list of vendors receiving fees/checks to detect any fictitious vendors. ?? System Security: Regularly review who has systemic access to your critical financial systems as well as ensure that you have up to date antivirus, firewalls, VPN, etc. ?? Office Security Measures: Policies such as locking office doors when unattended minimize the risk of theft, especially of valuable assets like computers, cash and check donations. Here’s how Riverway Risk Advisory helps nonprofits: ?? Enterprise Risk Management (ERM): Formalizing an ERM plan helps nonprofits meet compliance challenges. It informs strategic decisions, resource allocation, and risk mitigation efforts. ?? Risk Assessment and Internal Control Evaluations: A risk assessment tailored to the nonprofit’s specific context is conducted. This identifies potential risks related to finances, operations, reputation, and compliance. Internal controls related to those risks are evaluated and wherever needed, recommendations for control gaps and weaknesses are made. At Riverway Risk Advisory, “Care for the Community” is a core value. Contact us to learn more!?www.riverwayrisk.com

Navigating SOX 404a Compliance! ? Picture this: You’re at the edge of the runway, engines humming, ready for takeoff. The destination? SOX 404a compliance: a journey public companies must take to demonstrate confidence of financial reporting to the investing public. Just like a well-executed flight plan, achieving SOX compliance requires planning and preparation. For certain companies, the runway needed for SOX compliance can be up to 18-24 months. ? Take a look at the steps below and if your company is considering an IPO or SPAC connect with us today to discuss your plans! ? Month 1: ? Gain an understanding of the regulations and assemble your compliance team. ? Develop a roadmap that includes a scoping and risk assessment, your current state and level of effort needed to reach compliance. ? Months 2-6: ? Design and implement business process and IT general controls. ? Create process narratives, policies, and procedures. ? Identify gaps and deficiencies, and plan for remediation. ? Establish monitoring mechanisms. ? Train staff. ? Months 7-12: ? Address control gaps and deficiencies. ? Months 13-18: ? Test key controls and address any findings promptly. ? Months 19-24: ? Maintain compliance—regularly review controls and adapt to business changes. ? If an IPO, SPAC or Reverse Merger is in your sights, if you have identified a significant deficiency or material weakness that requires remediation, or if you’re just looking to kick the tires on your existing SOX 404a compliance program - get started today with Riverway Risk Advisory! Your Journey is Our Journey! ?