Celebrating 50 Years of Excellence!
1968 - 2018
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Not-For-Profit News
May 2018
Not-For-Profit External Financial Reporting  
Part Four

By Elise Zuleger, CPA
Accounting Associate
 
In this fourth of a five part series, we will focus on the statement of cash flows and its components.
 
Statement of Cash Flows
The third statement that must be reported (the first two being the statement of financial position and the statement of activities), if the not-for-profit organization has an external reporting requirement, is the statement of cash flows.
 
The purpose of the statement of cash flows is to show the change in cash during the period.  There are five basic elements to the statement of cash flows:
  • Cash flows from operating activities
  • Cash flows from investing activities
  • Cash flows from financing activities
  • Net change in cash during the period
  • Supplemental disclosure of non-cash investing and financing activities
  All cash receipts and payments should be classified as operating, investing, or financing.  All non-cash transactions should be disclosed separately rather than in the body of the statement.  
 
Cash Flows from Operating Activities
Cash receipts include: contributions, program income, and interest and dividend income.  Cash payments include: wages, supplies, general and administrative expenses, etc.
 
Cash Flows from Investing Activities
Cash receipts include: sale of property and equipment, sale of investments, and collections on loans.  Cash payments include: purchase of property and equipment, purchase of investments, and disbursement of loans.
 
Cash Flows from Financing Activities
Cash receipts include: Proceeds from short-term borrowings and proceeds from long-term borrowings.  Cash payments include:  repayment of short-term borrowings and repayment of long-term borrowings.
 
Net change in cash during the period
Once the cash flows from each of the above-mentioned sections has been determined, the sum of the three groups is the net change in cash.
 
Adding the change in cash to the beginning of year cash balance will give you the cash balance at the end of year.  This amount must equal what is stated on the statement of financial position.
 
Supplemental disclosure of non-cash investing and financing activities
Non-cash investing and financing transactions include:  Acquiring property and equipment through financing and acquiring property and equipment or investments as a gift from a donor.
 
Summation
The statement of cash flows may be the most misunderstood statement within the financial statements, but it is just as important as the statement of financial position and statement of activities when it comes to analyzing the financial health of the organization.   
 
If you have any questions regarding the statement of cash flows, please give us a call.
WKMR Celebrates 50 Years 
Part Two
1980 - 1992

Throughout the early 80s when the stagnant economy had seen better days, WKMR managed to progress and become an industry leader. We learned to develop and decipher the new micro computer technologies for ourselves and our clients. The firm went from one office in Wauwatosa and a staff of about 12 to two full-service offices and a staff of around 28 within a ten-year period.

Because of the success of the Oconomowoc office, by June of 1984 Daniel Gotter was invited to become a partner in the firm, the first additional partner admitted.

With both offices in full swing by the mid 80's WKMR was out growing their current spaces. In November 1985, WKMR relocated the Wauwatosa office to Elm Grove.

In September 1986, WKMR relocated the four-room Oconomowoc office to the First Bank of Oconomowoc Building in downtown Oconomowoc.

The 1986 Tax Reform Act substantially changed much of the Internal Revenue Code of 1953. The need for highly experienced tax professionals became paramount for the firm. Because of the tax changes and firm growth, we solved that need through the January 1987, acquisition of another CPA firm.  The firm of Jones & Zaffrann brought not only a strong client base to the firm, but the addition of two key members of the team, Wes Jones & Jim Zaffrann. The two had run a successful practice since 1983. Wes worked for two local CPA firms and Jim had spent six years with a local accounting firm before the two joined forces.

1987 was quite a banner year for the firm because the following three employees hired in that year have all progressed to become shareholders in the firm.
  • Jim Holsen came on board as a senior tax professional.  Prior to joining the WKMR team, Jim worked for four years at a local accounting firm.
  • Liz Kaiser worked for two local accounting firms in Illinois and Wisconsin before making her home on our WKMR team.
  • Paul Sehmer came to WKMR after working as an auditor for a large regional CPA firm located in the Racine area.
We are blessed with a number of employees who joined us in those early years who are still very valuable members of our team today.
Diane Bauer joined WKMR in 1984 and Lori Olson joined the firm in 1987.

In 1988 WKMR acquired Doolen & Co, S.C., a small Brookfield firm owned by George Doolen.  The two firms were neighbors in Elm Grove and often worked together on certain projects or referred business to one another. They had originally planned to merge, but George Doolen became ill and decided to sell his practice to WKMR effective July 1, 1988.  

Mark Potts, who has gone on to become a shareholder at WKMR came on board through the acquisition as a staff accountant after working for Doolen and Co., S.C. for four years.  He had knowledge in several different areas including tax, audit and not-for-profit accounting.

Curtis Disrud who has also become a shareholder was hired in 1988.  He joined the Oconomowoc office as a senior accountant and had worked for an accounting firm in North Dakota where he specialized in individual and small business tax.

The biggest changes for the firm in the late 80's and into the 90's came with the major advancements in technology and computers.  WKMR was always ahead of the times when it came to staying abreast of progress in both hardware and software.  They purchased things like newly developed tax preparation, depreciation and business accounting software that helped to streamline the accounting practice.

Portable computers were provided to the staff in the 80s.  These computers had six-inch monitors, weighed over 20 pounds and cost over $3,500.

With the growth of the internet came the introduction of e-filing as a means of submitting tax returns to the IRS.  WKMR filed their first individual tax return electronically in 1989.

In 1990 Tom Kloman, a founding partner in the firm, announced his early retirement.  He would stay on as a part-time consultant for a while, but wanted to spend more time with his wife.

Over these years WKMR has seen change not only in the tax laws, but in the accounting industry as a whole.  But one thing remains the same, WKMR's commitment to our clients and desire to provide exceptional service to each and every one of the businesses, families and individuals we serve.

Stay tuned to find out how we progressed over the next 12 years.

Upcoming Business Fraud Seminar - FREE 

 

WKMR is teaming up with North Shore Bank and Regus to present a free business fraud seminar.  Panelists will discuss current fraudulent scams and how to minimize the risk to your business. 

 

When:     Thursday, May 24, 2018
                9:30 - 11:00 a.m.
Where:    Regus
                N19W24400 Riverwood Dr., Suite 350
                Waukesha 

 

Panelists: 

  • Paul Sheahan, CPA, CFE, Manager, Winter, Kloman, Moter & Repp, S.C.
  • Penny Foust, Treasury Manager, North Shore Bank
  • Abby Huntington, Marsh & Mclennan Insurance
  • Dan Placek, IT Professional, SwickTech.
There is no cost to attend.  Please RSVP by May 18, 2018 to Jeremy Schmidt ( jschmidt@northshorebank.com  or 262.797.3392) or Ryan Semler ( Ryan.Semler@Regus.com   or 232.313.8886)
WKMR Sponsors Biz Connection Radio Show

WKMR is proud to sponsor the Biz Connection Radio Show, a weekly radio program hosted by Jim Rosetti & Ron Nielsen aimed at the business community. Business owners of large and small companies,  and at all stages of their business life, are guests on the show.

The show is broadcast in the Milwaukee area on 1340 WJYI AM and 98.7 FM on Sunday's at 2:00 p.m, on WQYL - DB Digital Radio - Waukesha and can also be heard on 1420 WJUB AM Saturday's at 8:00 a.m. in the Plymouth area and on 1330 WHBL AM on Saturday's at 1:00 p.m. in the Sheboygan area.  For more information on the program, visit  bizconnectionwi.com.


WKMR Fraud Services

If you suspect fraud may be occurring in your organization, there is action you can take.   At Winter, Kloman, Moter & Repp, S.C. our Certified Fraud Examiners (CFE) can assist you with putting internal controls in place to help prevent and detect fraud.  Our CFEs have the ability to:  
  • Identify the underlying factors that motivate individuals to commit fraud
  • Examine data and records to detect and trace fraudulent transactions
  • Interview suspects to obtain information
  • Write investigation reports
  • Advise clients as to their findings
  • Testify at trial

If you suspect fraud is occurring at your organization or would like help putting internal controls in place, give us a call.

Contact us:


 
 

             Brookfield                                  Oconomowoc       

     235 N. Executive Drive,           1040 Oconomowoc Parkway

              Suite 160                            Oconomowoc, WI  53066

      Brookfield, WI  53005                         262.567.6540      

            262.797.9050            

                           

 Watertown

138 Hospital Drive, Suite 100

Watertown, WI  53098

920.261.6767 

  

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At Winter, Kloman, Moter & Repp S.C.our not-for-profit team provides quality audit, accounting, tax, and consulting services to a variety of not-for-profit agencies, government funded businesses, private foundations, and assorted charitable organizations. Our experienced team has helped many not-for-profit organizations throughout Southeastern Wisconsin grow and thrive including:

  • Human Service Agencies
  • Cultural & Arts Organizations
  • Charitable & Religious Organizations
  • Educational & Day Care Institutions
  • Professional & Trade Associations
  • Assisted Living Facilities
  • HUD/WHEDA Housing Projects
  • Government-funded For-Profit Businesses

We concentrate on helping you best manage public or donated funds, analyzing how to get the most from your resources and helping you implement your plans to stretch every dollar. Our team of professionals understands your complex financial reporting needs, and will help you to accurately report your finances in an understandable way. We provide the independent audit and accounting services required by many of your funding sources by taking a value-added approach, implementing ever-changing tax reporting requirements, providing information technology consulting, and working with every aspect of your organization to support your success.

 

Volume: 8 Issue: 2
In This Issue
 
WKMR

Not-For-Profit Team

 

 CPA, PFS Shareholder
CPA
 Shareholder
CPA 
Manager
CPA 
Manager

Sandy Strelka 

CPA

Supervisor

 

 Jeni Caldwell

CPA 

Supervisor

 

 Kensie Drinkwine 

Senior

 

Rick Grochowske

CPA

Supervisor


CPA
Senior  
       
CPA
Associate


Associate



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