Not-For-Profit

Grassi & Co. offers accounting and business consulting services for the Not-For-Profit industry throughout the New York Metro area, including NYC, New Jersey, Long Island, Connecticut, and Pennsylvania. Read our Not-For-Profit blog posts to learn more about Not-For-Profit accounting in New York.

Be Prepared for Medicare MBI!

As a part of the MACRA 2015, CMS is required to remove the Social Security number or SSN from Medicare cards by April 2019.      New Medicare Beneficiary Identifier (MBI) will replace the SSN. Be prepared! CMS is currently working with all parties that use the current Medicare ID number to advise and initiate this change. Medicare recipients will begin to receive new Medicare ID cards in the spring of next year and all recipients should have received a new card by the end of December 2018. The new ID numbers will be random, 11 character-in- length, made up numbers and upper case letters. The suffixes that currently identify the primary individual or “source” e.g. husband, parent, self-disabled, will no longer be used. Make sure that your patients and staff are aware of these pending changes. Reach out to vendors or other parties you are affiliated with who are receiving or using Medicare ID information to be sure they are aware of the changes and will be ready.  The local Part B Medicare MAC for New York State and Connecticut, NGS Medicare, will be keeping providers updated on the transition progress. If you are a Medicare provider, you or your staff should be sure to be enrolled in the NGS listserv for continuing updates. For more information, contact Stephanie Fiedler, Director for Healthcare Advisory Services at Grassi & Co., at...

E-Alert: Technical Assistance for Development of Behavioral Health Care Collaborative (BHCC)

For behavioral health providers preparing themselves for value based payment (VBP), New York State, in collaboration with OASAS and OMH, is offering an opportunity for planning funding for this effort.  Notification of interest for participation in this program, originally due on June 5, are now due on June 16th. While this notification is non-binding, it’s required for all applicants. The notification is completed by the lead community based (non-hospital) agency of a behavioral health care collaborative (BHCC), which will represent multiple providers.  The program will fund behavioral health providers to come together in a BHCC. This funding will be available for planning and implementation, to support the development of shared infrastructure. BHCCs will share clinical quality standards, data collection, analytics, and reporting, to improve care quality and enhance their value in VBP arrangements. If you need additional information or if you need assistance developing your network and completing the application which is due later this summer, please contact Joseph Tomaino, Principal, Healthcare Transformation Consulting, jtomaino@grassicpas.com, or call at...

Changes to Come From NYS 2017-2018 Budget

Below are some important changes to the NYS 2017-2018 Budget that will effect those in the behavioral health space and OPWDD providers. Office of Mental Health: The final budget increases funds for all OMH single-residence occupancy programs (CR-SROs and Support-SROs) throughout the state, as well as downstate supported housing. CRO & SRO providers will receive an annual rate increase of $750 upstate and $650 downstate and a $500 increase for NYC, LI, Westchester, Rockland and Putnam for Supported Housing. The budget also includes a 3.25% increase for Direct Care and Direct Support staff in OMH, OASAS & OPWDD programs in January 2018. This is in addition to the December 2017 minimum wage increase of $2.9 million with a federal match to $4.4 million for OMH programs that rely on Medicaid. These positions are defined as positions being reported on lines 100 & 200 on the CFR and will result in $6.8 million in state dollars with a federal match for programs that rely on Medicaid which will result in an estimated $10.7 million A second 3.25% enhancement is slated for April 1, 2018 for Direct Care, Direct Support & Clinical staff. This second increase is only a promise but if realized will result in $50 million in funding including the federal match for the community mental health system. A big thank you to the 12 Behavioral Health Advocacy groups and Associations which spearheaded the initiative called Bfair2DirectCare to ask for these increases. A great result from the collaborative effort of OMH & OASAS groups. The residential program increase will be based on the actual salaries paid and reported in the...

Cyberattacks of Nonprofits on the Rise

Cyberattacks and data breaches are commonplace in the news now—it would be easy to miss the changing trend on where these attacks are being focused. Financial institutions and banks will always be prime targets due to the information they contain, but the marked increase of attacks aimed at non-profit organizations, with particular focus on charitable and educational institutions, isn’t as understood. It’s first important to remember what these attackers value—they value personal information they can exploit for their own financial gain. Nonprofits are more likely to possess a greater cache of personal information, with far more detail, than many other for-profit companies. The depth of the personal information makes it even that much more valuable. In fact, a full personal information record sells for a great deal more than most other types of information when being sold on the dark web. Credit card information sells for about 25 cents; medical records sell for approximately $2.50; personal data information sells in the $25-$30 dollar range, depending on how much information it contains. It’s the very nature of the information collected that makes nonprofit information so valuable to malicious actors, and charitable organizations rate even higher. Think of the information present in a typical charitable organization’s database: donor rolls and all of the personal identification information kept on each donor names, addresses, and email addresses on mailing lists corporate sponsors, their information, and the record of their donations and support the names of every board member, employee, and volunteer—along with their personal information—that does work for the charity all of the financial and banking information of the organization itself While these...

Mergers & Acquisitions for NFPs

The thought behind merging two companies together is to increase the value of each—the idea that two are better than one. Today’s not-for-profit sector is experiencing an unprecedented change which is moving many NFP organizations to consider merger and acquisition activity. Several key tenets driving this are: Many senior level executives who founded their organization, or have been involved with it for decades, are finding themselves nearing retirement. This has led to a significant increase in unfilled executive level positions. Ongoing budgetary constraints on government funded NFP’s are experiencing the additional burden of providing more services with less available funding. Extreme complexity regarding reimbursement methodologies and underlying governmental compliance regulations The sheer increase in the number of NFP organizations over recent years, has made it more difficult to attract qualified board members Identification of risk factors that the organization is unable to manage, mitigate or eliminate Lack of financial sustainability because of decreases in programmatic funding and third-party contributions A board of directors and/or executive management that is in tune with these challenges positions themselves to be proactive in identifying potential solutions. Many NFPs will begin the process with the concept of collaboration, before considering a potential merger. Collaborative efforts among similar NFPs can be very beneficial to both parties. An example of this in recent practice is the sharing of staff among multiple agencies, where a full-time position at the various organizations is not necessary. The sharing of a staff provides the proper technical support and function, while reducing the cost of a full-time salary. We have seen this work in the areas of IT, maintenance support and compliance....

FASB’s Proposed Changes Shake-Up NFP Community

In April 2015, the Financial Accounting Standards Board (the “Board”) issued a proposed accounting standards update (“ASU”) relating to  the presentation of financial statements of Not-for-Profit entities that shook the NFP community. Although the Board presented this as an update to existing standards, some would say that the proposal includes significant changes to financial statements as we know them today. Although the Board is doing a great job at educating the NFP community and gathering more feedback through various outreach activities, the community still needs time to processes such drastic changes. NFP stakeholders had an opportunity to provide their feedback through comment letter responses and participation in public roundtables, and, overall, have supported the main objective of the proposal which is to increase comparability, consistency and transparency.  NFPs recognize the importance of making the reporting more relevant to  users of their financial statements—creditors, donors, governing boards and managers—providing additional information on how NFPs are managing and communicating financial performance, uses of funds,  and  sustainability strategies. However, there were many concerns raised about the increased complexity of the proposed presentation, comparability of the reporting between different NFPs, and loosing certain flexibilities. The main question remains: how much of donors dollars would have to be used in order to cover the cost of the implementation—especially for small NFPs—and will this cost exceed the expected benefits? After several months of deliberation, the Board decided to break the project down into two phases, with the expectation of issuing the final standard on phase 1 by mid-2016. Phase 2 items will be further discussed and modified, possibly sometime in 2017. Phase I items cover:...