Last March the RSF Association hired a new Controller, Don May, and announced a transition to more accurate accounting practices.
A RSF Review report from April explained the benefits of the new system, called full-accrual accounting, which would prevent the likelihood of reporting errors like the one that was uncovered following an audit of the Association’s finances. The audit revealed an apparent $1.6 million discrepancy in reserves.
The RSF Review reported:
“Recently, during a review of the Association’s accounting department, outside consultants found a significant internal reporting error: Both restricted reserves and free reserves for all the entities within the Association appear to have been miscalculated by about $1.6 million. Overton said in their accounting practice overhaul, they are never using the term ‘free reserves’ again — the proper term is ‘fund balance.'”
May replaced former CFO Steve Comstock when he joined the Association in March 2015.
Read the full story at the RSF Review