NEWS

Massachusetts Uniform Financial Report FY2019 Updates

August 6, 2019

The Operations Services Division (OSD) of the Commonwealth of Massachusetts has recently released the FY2019 UFR Audit and Preparation Manual. Included in the Manual are changes from last year’s UFR template that Nonprofit Organizations should review and incorporate into their current year filing. One of the major changes was an update to the UFR excel template to conform to Accounting Standards Update (ASU) 2016-14, Not-For-Profit Entities (Topic 958)-Presentation of Financial Statements for Not-for-Profit Entities, which among other things eliminated the three net asset classes (unrestricted, temporarily restricted and permanently restricted) and replaced them with net assets with donor restrictions and net assets without donor restrictions.

For your convenience we have highlighted some of the other changes below but you may also find the detailed Manual and notification of the changes at OSD’s website https://www.mass.gov/service-details/information-and-resources-on-the-uniform-financial-reports.

  1. Compensation to Principals listed on Schedule A and ExecCompADD. Compensation consists of salaries, fees and bonuses, severance, and all other items included as personal income. This includes benefit packages, consisting of all forms of deferred compensation and all payments by your organization to employee benefits plans and retirement plans, including, examples such as health insurance, vehicles, consultant payments, loans, and other items identified as employee compensation in IRS Publication 525 Taxable and Nontaxable Income. Preparers should initially use the lines available on Schedule A for disclosure and when those disclosure lines are insufficient utilize the appropriate worksheet in the template (ExecCompADD) for the additional required disclosures.
  2. 26E.) Vehicle Expenses. Effective 7/1/18, Program Vehicle insurance (formerly in line 25E Client Transportation 208) must be reported in UFR line number 26E, Vehicle Expenses.
  3. 34E.) Non Charitable Expenses. Effective 7/1/18, please report Non–Reimbursable expenses in UFR line number 54E or 55E.
  4. 35E.) Other Expenses. Miscellaneous expenses. Identify type and amount of expense on separate schedule if over $5,000 per program.
  5. 37E.) Management Fees. Effective 7/1/18, please consolidate the following and report the total on UFR line number 37E Management Fees: 37E Management Fees and 41E Management Consultant.
  6. 39E.) Legal Fees. Effective 7/1/18, please consolidate the following and report the total on UFR line number 42E Other Professional Fees and Other Administrative Expenses: 39E Legal Fees, 42E Other Professional Fees and Other Administrative Expenses.
  7. 41E.) Management Consultant. Effective 7/1/18, please consolidate the following and report the total on UFR line number 37E Management Fees: 37E Management Fees and 41E Management Consultant.
  8. 42E.) Other Professional Fees and Other Administrative Expenses (including Legal Fees). All fees or compensation paid by the organization for the legal services of an attorney (does not include lobbying). Effective 7/1/18, please consolidate the following and report the total on UFR line number 42E Other Professional Fees and Other Administrative Expenses: 39E Legal Fees, 42E Other Professional Fees and Other Administrative Expenses.
  9. 45E.) Administrative Vehicle Expense. The schedule should NOT include buses, seven persons and greater passenger vans and vehicles such as dump trucks, pick-up and panel trucks that are used by plant and facility maintenance staff.
  10. 47E.) Director & Officers Insurance. Effective 7/1/18, please consolidate the following and report the total on UFR line number 47E Director & Officers Insurance: 47E Director & Officers Insurance and 49E Professional Insurance.
  11. 49E.) Professional Insurance. Effective 7/1/18, please consolidate the following and report the total on UFR line number 47E Director & Officers Insurance: 47E Director & Officers Insurance and 49E Professional Insurance.
  12.  CATEGORY 1: DIRECT CARE / PROGRAM STAFF (Components 101-151) Effective 7/1/18, please consolidate the following and report the total on UFR line number 2S Program Function Manager 101: 2S Program Function Manager 101, 1S Program Director 102,  3S Assistant Program Director 103 and 4S Supervising Professional 104.
  13. UFR line numbers 36S and 37S of Component 138, Program Support, Housekeeping, Maintenance, Janitorial, Groundskeeper, Driver, Cook.  Effective 7/1/18, please consolidate the following and report the total on UFR line number 36S Maintenance, Housekeeping, Cook: 36S Maintenance, Housekeeping, Cook and 37S Direct Care/ Driver Staff.
  14. CATEGORY 2: OTHER DIRECT CARE / PROGRAM RESOURCES (Components 201 – 216) Effective 7/1/18, please consolidate the following and report the total on UFR line number 18E Direct Care Program Consultants 201: 18E Direct Care Program Consultants 201 and 19E Temporary Help 202.
  15. 208 Client Transportation Effective 7/1/18, program vehicle insurance must be reported in UFR line number 26E, Vehicle Expense 208.
  16. Non reimbursable expense detail on schedule A_OSI and B_PSI: Effective 7/1/18, please consolidate the following and report the total on UFR line number 3N, Direct Other Program/Operating Expense: 3N, Direct Other Program/Operating Expense and 6N, Direct Other Expense. Please note that these expenses must be disclosed separately in the supplemental schedule.