Online Stewardship Accounting & Consulting Services

If your not-for-profit has an endowment, you probably know it’s a major responsibility. Endowment investments generally need to be managed by a financial expert, and your organization must adhere to certain regulations, particularly when it comes to spending. As a refresher — or primer for new employees or board members — here are the basics of endowment management.

Prudent decisions

First, it’s important to distinguish endowments from operating reserves. Endowments generally are designed to provide steady income to a nonprofit while its core investments grow untouched. That steady income can be a financial safeguard in times of crisis.

A significant portion of most nonprofit endowment assets are restricted funds. For funds that aren’t restricted, organizations generally must conform to provisions of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). Among other things, the UPMIFA allows nonprofits to include appreciation of invested funds as part of what is “spendable” in addition to realized gains, interest and dividends.

The act also provides guidance for “prudent” decisions, suggesting that spending more than 7% of an endowment in any one year generally isn’t fiscally responsible. And the UPMIFA makes it easier for nonprofits to identify new uses for older and smaller endowments that may be dedicated to obsolete or impractical purposes.

Spending income

Your spending policy will need to define how much of your endowment fund’s income can be spent on operations each year. Usually, this is defined as a percentage (between 4% and 7%) of a rolling average of endowment investments. A rolling average helps even out the ups and downs of market returns and prevents the endowment’s contribution to any one budget year from being significantly lower than contributions to other years.

However, this approach doesn’t address whether your endowment fund will be able to maintain a similar level of funding for future operations. Also, because investment returns usually don’t correspond to the inflation rates that affect your operating budget, your spending policy should be based on more than recent returns. To factor inflation into your spending policy, you might start with a relatively conservative, inflation-free investment rate of return. Then adjust it for inflation to arrive at a spending rate you can apply on a year-by-year basis.

Today’s difficult climate

The current high inflation, market volatility and recession worries make planning for your organization’s future challenging. If you aren’t sure whether your endowment’s spending policy has kept up with economic realities or developments within your organization, contact us for help.

Contact Online Stewardship or our parent company, Patrick & Raines CPAs for help when you have questions regarding your endowment accounts.  You can reach out to Lynn by calling (904) 396-5400 or email her at Lynn@onlinestewardship.com or office@CPAsite.com.

© 2023

Filed under: accounting, endowment, not-for-profit by OSA&C Tuesday, February 21st, 2023
Comments Off on A refresher on nonprofit endowment management

Not-for-profit executives can be perfectionists — they often know exactly how they want something done and believe they’re the only ones capable of doing it right. Unfortunately, this attitude can alienate staffers and make it difficult to mentor successors and build effective teams. Then there’s the problem of time: There are only so many hours in the work day. To best serve your nonprofit and its constituents, you must practice the art of delegation.

What to hand off

It’s important for executives to devote their time to the projects that are the most valuable to their organization and that can best benefit from their talents. For example, public speaking engagements and meetings with major donors are probably best left to you and other upper-level executives. On the other hand, tasks that frequently reoccur, such as sending membership renewal notices, and jobs that require a specific skill in which you have minimal or no expertise, such as reconciling bank accounts, are probably delegation targets.

Before you delegate a task to an employee, consider the person’s main job responsibilities and experience and how those correlate with the project. At the same time, keep in mind that employees may welcome opportunities to test their wings in a new area or take on greater responsibility. Before assigning new tasks, check staffers’ schedules to confirm that they actually have time to do the job well.

How to be flexible

When handing off a task, be clear about goals, expectations, deadlines and details. Explain why you chose the individual and what the project means to the organization as a whole. Also let employees know if they have any latitude to bring their own methods and processes to the task. You may be tempted to micromanage a delegated task, but try to give staffers flexibility. After all, a fresh pair of eyes might see new and better ways to accomplish jobs.

On the other hand, delegation doesn’t mean dumping a project on someone and then washing your hands of it. Ultimately, you’re responsible for the task’s completion, even if you assign it to someone else. So stay involved by monitoring the employee’s progress and providing coaching and constructive feedback as necessary.

Getting it right

How do you know if you’re delegating correctly? Ideally, you should have time to focus on mission critical tasks that leverage your specific talents, and your staffers should be provided with growth and learning opportunities. If you’re new to delegating, it may take some time to get used to identifying projects to delegate and the staffers best capable of handling them. But once you get the hang of it, delegation can make the job of managing a nonprofit a little easier and much more fulfilling.

For more information about delegating, you can reach out to Online Stewardship or our parent company, Patrick & Raines, CPAs.  Get in touch by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.  

©2023

Filed under: accounting, not-for-profit by OSA&C Tuesday, February 7th, 2023
Comments Off on Even perfectionists can learn to love delegation

A community health center desperately needed to upgrade its computer network. Unfortunately, the not-for-profit had little IT expertise on staff or on its board of directors. That’s when it decided to form an advisory committee made up of people who could analyze the situation and help guide IT decision-making. This included a retired technology company executive, a cybersecurity specialist and a longtime volunteer who, in her paid job, managed technology purchasing for a hospital network.

This is only one example of an advisory board. These boards can function to guide specific projects or supplement existing expertise. At the same time, they can provide roles for major donors who may not be right for your regular board.

Asking questions

Does your nonprofit need an advisory board? Look at your general board members’ demographics and collective profile. Does your board lack representation from certain groups — particularly relative to the communities your organization serves? One thing advisory boards can do is offer opportunities to diversify leadership.

Also consider the skills current board members bring — or don’t bring — to the table. Do you have enough financial expertise on your board? Does the group have adequate fundraising or grant writing experience? What about public relations skills? An advisory board can help fill in critical knowledge gaps.

Adding advisory board members can also open the door to funding opportunities. If, for example, your nonprofit is considering expanding its geographic presence, it may make sense to find an advisory board member from outside your current area. That person might be connected with business leaders and be able to introduce board members to appropriate people in the community.

Selecting advisors

The advisory role is a great way to get people involved who can’t necessarily make the time commitment that a regular board position would require. It also might appeal to recently retired individuals or stay-at-home parents wanting to get involved with a nonprofit on a limited basis. And it can be an ideal way to “test out” potential board members. If a spot opens on your current board and some of your advisory board members are interested in making a bigger commitment, you’ll have a ready pool of informed individuals from which to choose.

Just make sure that advisory board recruits understand their role. They aren’t involved in your organization’s governance and can’t introduce motions or vote on them. But they can propose ideas, make recommendations and influence voting board members. Often, advisory board members organize campaigns and manage short-term projects.

When to disband

Advisory boards usually are disbanded after a project — such as the computer system upgrade for the fictitious advisory board mentioned previously — has been successfully completed. You may also want to consider eliminating an advisory board if it doesn’t seem to be meeting its objectives or requires more staff support than you can provide.

For more information on governance and financial issues, you can reach out to Online Stewardship or our parent company, Patrick & Raines. Get in touch by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, January 24th, 2023
Comments Off on Put an advisory board to work on your nonprofit’s challenges

Most not-for-profits can’t afford to turn down offers of financial support. At the same time, you shouldn’t blindly accept government or foundation grants simply because they’re offered. Some grants may come with excessive administrative burdens, cost inefficiencies and lost opportunities. Here’s how to evaluate them.

Administrative and other burdens

Smaller or newer nonprofits are at particular risk of unexpected consequences when they accept grants. But larger and growing organizations also need to be careful. As organizations expand, they usually enjoy more opportunities to widen the scope of their programming. This can open the door to more grants, including some that are outside the organization’s expertise and experience.

Even small grants can bring sizable administrative burdens — for example, potential reporting requirements. You might not have staff with the requisite experience, or you may lack the processes and controls to collect the necessary data.

Grants that go outside your organization’s original mission can pose problems, too. For example, they might cause you to face IRS scrutiny regarding your exempt status.

Costs vs. benefits

As for costs, your nonprofit might incur expenses to complete a program that may not be allowable or reimbursable under the grant. As part of your initial grant research, be sure to calculate all possible costs against the original grant amount to determine its ultimate benefit to your organization.

Then if you decide to go ahead with the grant, analyze any lost opportunity considerations. For unreimbursed costs associated with new grants, consider how else your organization could spend that money. Also think about how the grant affects staffing. Do you have staff resources in place or will you need to hire additional staff? Could you get more mission-related bang for your buck if you spent funds on an existing program as opposed to a new program?

Quantifying the benefit of a new grant or program can be equally (or more) challenging than identifying its costs. Assess each program to determine its impact on your organization’s mission. This will allow you to answer critical questions when evaluating a potential grant.

Over the long term

If your organization has lost grants during the COVID-19 pandemic, you’re probably tempted to welcome any new funds with open arms. However, it pays over the long term to scrutinize grants before you accept them. Contact us if your nonprofit is trying to grow revenue and needs fresh ideas. You can reach out to Online Stewardship or our parent company, Patrick & Raines CPAs. Get in touch by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2023

Filed under: General by OSA&C Tuesday, January 10th, 2023
Comments Off on Before your nonprofit celebrates that new grant …

Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be?

Start with invoicing

A good first step toward accounting function improvement is creating policies and procedures for the monthly cutoff of recording vendor invoices and expenses. For instance, you could require all invoices to be submitted to the accounting department within one week after the end of each month. Too many adjustments — or waiting for employees or departments to weigh in — can waste time and delay the completion of your financial statements.

Another tip about invoices: It’s generally best not to enter only one invoice or cut only one check at a time. Set aside a block of time to do the job when you have multiple items to process.

You also may be able to save time at the end of the year by reconciling your balance sheet accounts each month. It’s a lot easier to correct errors when you catch them early. Also, reconcile accounts payable and accounts receivable subsidiary ledgers to your statements of financial position.

Think through data collection

Designing a coding cover sheet or stamp is another way to boost efficiency. An accounting clerk or bookkeeper needs a variety of information to enter vendor bills and donor gifts into your accounting system. You can speed up the process by collecting all the information on the invoice or donor check copy using a stamp. Route invoices for approval in a folder that lists your not-for-profit’s general ledger account numbers so that the employee entering data doesn’t have to look them up each time.

The cover sheet or stamp also should provide a place for the appropriate person to approve the invoice for payment. Use multiple-choice boxes to indicate which cost centers the amounts should be allocated to. Documentation of the invoice’s payment should also be recorded for reference. And your development staff should provide the details for any donor gifts prior to your staff recording them in the accounting system.

Optimize accounting software

Many organizations underuse the accounting software package they’ve purchased because they haven’t invested enough time to learn its full functionality. If needed, hire a trainer to review the software’s basic functions with staff and teach time-saving tricks and shortcuts.

Standardize the financial reports coming from your accounting software to meet your needs with no modification. This not only will reduce input errors but also will provide helpful financial information at any point, not just at month’s end.

Consider performing standard journal entries and payroll allocations automatically within your accounting software. Many systems have the ability to automate, for example, payroll allocations to various programs or vacation accrual reports. But review any estimates against actual figures periodically, and always adjust to the actual amount before closing your books at year end.

Ongoing review

Accounting processes can become inefficient over time if they aren’t monitored. Look for labor-intensive steps that could be automated or steps that don’t add value and could be eliminated. Also make sure that the individual or group that’s responsible for the organization’s financial oversight (for example, your CFO, treasurer or finance committee) promptly reviews monthly bank statements and financial statements for obvious errors or unexpected amounts. Contact Online Stewardship, or our parent company Patrick & Raines, for more tips on how to improve the accounting function at your nonprofit. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, December 27th, 2022
Comments Off on Accounting policies and procedures are essential for nonprofits, too

By now, all organizations — for-profit and not-for-profit — know about the risk of cyberattacks. Why then, would any nonprofit fail to secure its network and digital assets? One reason is cost. Cybersecurity can be expensive. Yet according to IBM’s “2022 Cost of a Data Breach Report,” a data breach in the United States leads to an average $9.44 million loss. Obviously, the average is skewed by cyberattacks on large companies. But it’s possible for nonprofits to lose more than they can afford.

Phishing evolves

Most attacks are made via phishing schemes, where cybercriminals use email to dupe victims into providing personal information, including login credentials. Phishing emails generally include links or attachments that, when clicked, infect computers with malware that enables fraudsters to access your systems.

Increasingly, cybercriminals are using phishing emails to perpetrate ransomware attacks. They gain control of an organization’s network and data and lock legitimate users out. They then hold the data hostage until the victim organization pays a ransom. The criminals might leak some confidential information to the public or on the “dark web” to show they’re serious and to encourage quick payment. Ransomware perpetrators usually release the data after they receive a ransom — but not always.

Acting proactively

Criminals have hacked everything from government agencies to hospitals to large charities, so it’s critical that all nonprofits act defensively and provide training to staffers. Training should cover various phishing schemes and include testing so employees can see how easy it is to fall for scams. Other ways to contain potential cyberthreats are:

Look for emails flying red flags. Everyone in your organization should look out for suspicious emails, including messages with a sense of urgency, such as a subject line that says, “Respond ASAP.” Phishing subject lines might also include references to upcoming meeting agendas, payroll questions and password verifications. They may appear to come from HR, tech support or your executive director.

Phishing messages frequently are peppered with bad grammar and misspelled words. They may use numbers and special characters that look like letters to dodge anti-phishing software and include URLs that are close, but not identical, to the addresses of legitimate sites.

Use password managers. Your organization should consider using password managers. A surprising number of employees still use easily hacked passwords such as 1234 and PASSWORD. Password managers generate complex passwords and store them for users. At the very least, require employees to come up with difficult passwords and change them frequently. For greater security, implement two-factor authentication. This requires users to log in normally and then confirm their identity via text or phone.

Stay current. Implement hardware and software updates on a timely basis and stop using programs that are no longer updated and supported by their makers.

No excuse

There are plenty of affordable (if not free) cybersecurity tools available to nonprofits. So there’s no excuse for you to simply hope your organization won’t be hacked. Contact us, Online Stewardship, or our parent company Patrick & Raines, for more information about protecting your assets. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, December 13th, 2022
Comments Off on Protecting your nonprofit from data breaches

If you’re looking for an affordable training for your Not-for-Profit, this is a great opportunity.  This 2023 series that they are offering, is designed to strengthen your skill set and move your organization’s mission forward.

Professional Development Series 2023 – Nonprofit Center of Northeast Florida https://bit.ly/3uh3in7 

Filed under: General by OSA&C Thursday, December 1st, 2022
Comments Off on 2023 Professional Development Series

First the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus on building up operating reserves. Even if you can afford to divert only a small amount to reserves right now, should your organization need it, you’ll be grateful for the cushion.

A policy to help weather storms

Strong reserves can help nonprofits survive unexpected financial blows (or, in better times, take advantage of sudden opportunities). Review the short- and long-term risks your organization faces. For example, is it heavily reliant on a handful of funding sources that, if cut off or reduced, would jeopardize its future?

If your organization doesn’t already have a formal written reserves policy, develop one now. And, if it does, review the policy to see how it holds up in light of the past three tumultuous years.

Among other things, your policy should set the target amount to hold in a separate fund. Although no universal benchmark applies, most organizations should set aside six months of operating expenses. Your leadership’s risk appetite and your current financial position may dictate a lower or higher target. Avoid setting the target too high, though. Donors and grantmakers generally don’t favor stockpiling of funds that could otherwise be used to pursue your mission. Your policy also should establish triggers for when your organization can dip into reserves.

A plan for funding

Assuming your current reserve level falls below the target, develop a plan for getting it back on track. If you’ve received increased donations over the past couple of years, you might be able to fully fund your reserves with unrestricted net assets. Or use large bequests or unexpected windfalls.

Most nonprofits, however, need to include a line item for contributions to the reserves in their budgets. This amount shouldn’t hinder day-to-day operations, but it will help you begin to make real progress toward your reserves goal. It may be necessary to cut expenses, cancel projects or divest investments to free up funds.

Remember to leave illiquid fixed assets (buildings and equipment), endowments and temporarily restricted funds out of the equation. Similarly, budget surpluses aren’t necessarily available to fund reserves because they might include funds already earmarked for future expenses.

Be patient

Building or replenishing operating reserves takes time and your stakeholders must understand that it’s an ongoing, long-term project. In general, it takes several years to build months of reserves, and that’s if everything goes according to plan. If you’re having trouble finding funds for your operating reserves, contact us. We can analyze your financial situation and recommend solutions. Contact Online Stewardship, or our parent company Patrick & Raines, with questions. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

First the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus on building up operating reserves. Even if you can afford to divert only a small amount to reserves right now, should your organization need it, you’ll be grateful for the cushion.

A policy to help weather storms

Strong reserves can help nonprofits survive unexpected financial blows (or, in better times, take advantage of sudden opportunities). Review the short- and long-term risks your organization faces. For example, is it heavily reliant on a handful of funding sources that, if cut off or reduced, would jeopardize its future?

If your organization doesn’t already have a formal written reserves policy, develop one now. And, if it does, review the policy to see how it holds up in light of the past three tumultuous years.

Among other things, your policy should set the target amount to hold in a separate fund. Although no universal benchmark applies, most organizations should set aside six months of operating expenses. Your leadership’s risk appetite and your current financial position may dictate a lower or higher target. Avoid setting the target too high, though. Donors and grantmakers generally don’t favor stockpiling of funds that could otherwise be used to pursue your mission. Your policy also should establish triggers for when your organization can dip into reserves.

A plan for funding

Assuming your current reserve level falls below the target, develop a plan for getting it back on track. If you’ve received increased donations over the past couple of years, you might be able to fully fund your reserves with unrestricted net assets. Or use large bequests or unexpected windfalls.

Most nonprofits, however, need to include a line item for contributions to the reserves in their budgets. This amount shouldn’t hinder day-to-day operations, but it will help you begin to make real progress toward your reserves goal. It may be necessary to cut expenses, cancel projects or divest investments to free up funds.

Remember to leave illiquid fixed assets (buildings and equipment), endowments and temporarily restricted funds out of the equation. Similarly, budget surpluses aren’t necessarily available to fund reserves because they might include funds already earmarked for future expenses.

Be patient

Building or replenishing operating reserves takes time and your stakeholders must understand that it’s an ongoing, long-term project. In general, it takes several years to build months of reserves, and that’s if everything goes according to plan. If you’re having trouble finding funds for your operating reserves, contact us. We can analyze your financial situation and recommend solutions.

© 2022

Filed under: General by OSA&C Tuesday, November 29th, 2022
Comments Off on Operating reserves can help cushion financial blows

Religious congregations usually enjoy greater protection from federal government oversight than other not-for-profit organizations. For example, the IRS can’t conduct a “church tax inquiry” unless a high-level Treasury Department official has written evidence that a religious organization has violated tax-exempt rules.

However, you’d do your faith group a great disservice it you failed to observe IRS rules and financial best practices. Even if your congregation escapes government scrutiny, it could fall victim to fraud — or general mismanagement — that harms your members and reputation.

UBIT concerns

To effectively prevent financial and other critical mistakes, make sure your religious congregation complies with IRS rules and federal and state laws. In particular, watch out for unrelated business income tax (UBIT). If your organization regularly engages in any type of business activity that’s unrelated to its religious mission, be aware of certain tax and reporting rules. Income from such activities could be subject to UBIT.

For example, if you charge members of your congregation to park in your lot to attend religious services, that income generally isn’t taxable. However, if you collect parking fees from the general public to use your lot, they are likely to be subject to UBIT. Other sources of unrelated business income can be publications, clothing and other merchandise, advertising, and gaming activities that generate income. If your organization has $1,000 or more in annual income from unrelated business income, it must file Form 990-T with the IRS.

Other issues to watch for

Religious congregations aren’t always clear about employment status and wages for clergy and other workers. Most clergy should be treated as employees and receive W-2 forms. Typically, they’re exempt from Social Security taxes, Medicare taxes and federal withholding but are subject to self-employment tax on wages. A parsonage (or housing) allowance can reduce income tax, but not self-employment tax.

If you have non-clergy employees, you must withhold federal, Social Security and Medicare taxes from their paychecks. You also must follow federal labor laws, such as those related to minimum and overtime wages.

In this election year, it’s especially important to understand that your organization shouldn’t devote a substantial part of its activities to attempting to influence legislation. Religious organizations are generally barred from endorsing or campaigning on behalf of political candidates or parties. Otherwise, you might risk your tax-exempt status and face potential penalties.

Foiling fraud

Faith groups can be particularly vulnerable to fraud because they generally foster an environment of trust. Also, they may be reluctant to punish offenders. Just keep in mind that even the most long-standing members may be capable of embezzlement when faced with extreme circumstances.

Require that at least two people handle all contributions. They should count cash in a secure area and verify the contents of offering envelopes. Next, they should document their collection activity in a signed report. For greater security, encourage your members to make electronic payments on your website or sign up for automatic bank account deductions.

Best practices

Even though religious congregations aren’t required to file tax returns or conduct financial audits, they must comply with applicable IRS rules and other regulations. Contact us, Online Stewardship, or our parent company Patrick & Raines, with questions. You can reach out by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, November 15th, 2022
Comments Off on Keep your religious congregation on the financial straight and narrow

Whew! That’s probably your reaction when outside experts announce that their audit of your not-for-profit is complete. But even if auditors have left your premises and returned the documents they’ve reviewed, the work isn’t really over. Not only do your executive director and board need to review the audit report, but it may be necessary to address auditor concerns by making changes to your organization.

Review the draft

Once outside auditors complete their work, they typically present a draft report to an organization’s audit committee, executive director and senior financial staffers. Those individuals should take the time to review the draft before it’s presented to the board of directors.

Your audit committee and management also need to meet with the auditors before the board presentation. Often auditors will provide a management letter (also called “communication with those charged with governance”) highlighting operational areas and controls that need improvement. Your nonprofit’s team can respond to these comments, indicating ways they plan to improve operations and controls, to be included in the final letter. The audit committee also can use the meeting to ensure the audit is properly comprehensive.

Assess internal controls

The final audit report will state whether your nonprofit’s financial statements present its financial position in accordance with U.S. Generally Accepted Accounting Principles. The statements must be presented without any inaccuracies or “material” — meaning significant — misrepresentation.

The auditors also will identify, in a separate letter, specific concerns about material internal control issues. Adequate internal controls are critical for preventing, catching and remedying misstatements that could compromise the integrity of financial statements. If the auditors have found your internal controls to be weak, promptly shore them up.

Gather feedback

One important audit committee task is to obtain your executive director’s impression of the auditors and audit process. Were the auditors efficient, or did they perform or require redundant work? Did they demonstrate the requisite expertise, skills and understanding? Were they disruptive to operations? Consider this input when deciding whether to retain the same firm for the next audit.

The committee also might want to seek feedback from employees who worked most closely with the auditors. In addition to feedback on the auditors, they may have suggestions on how to streamline the process for the next audit.

Fiscal responsibility

Your donors, grantmakers and other supporters expect your organization to do everything in its power to ensure funds are used appropriately and responsibly. If you fail to act on issues identified in an audit, it could lead to asset misappropriation and seriously damage your nonprofit’s reputation and viability. Contact us if you have questions, require an audit or need help improving internal controls.  You can reach out to Online Stewardship or our parent company, Patrick & Raines. Get in touch by calling (904) 396-5400 or emailing Lynn@onlinestewardship.com or office@CPAsite.com.

© 2022

Filed under: General by OSA&C Tuesday, November 1st, 2022
Comments Off on The audit is over. Now what?