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

By Elise Zuleger, CPA
Accounting Associate
 
In this third of a five part series, we will focus on the statement of activities and its components.
 
Statement of Activities
The second statement that must be reported (the first being the statement of financial position),  i f the not-for-profit organization (NFP) has an external reporting requirement, is the statement of activities. The statement of activities resembl es a for-profit company's income statement. The purpose of the statement of activities is to report the change in net assets of the NFP. The organization has some flexibility in how it chooses to report this, but it must report the changes in net assets according to the three classes of net assets unrestricted, temporarily restricted,  and  permanently restricted. 

Revenue and Support
Proper classification of revenue and support is vital to the statement of activities, especially contributions. How contributions are recorded is dependent on the donors' intent. The following are descriptions of the three classes of contributions:

Unrestricted: 
Donor makes a contribution without any restriction on how or when it is used.

Temporarily Restricted:
Purpose Stipulation: Donor makes a contribution indicating that the money must be used for a specific purpose.
Time Stipulation: Donor makes a contribution for a certain time in the future.

Permanently Restricted:  
Donor makes a contribution indicating that the corpus must be invested in perpetuity and only the income is available for use in accordance with donor restrictions.

Expenses
Expenses of a NFP are broadly categorized as either program service expenses or supporting service expenses. Expenses may also be classified by their natural or functional classification. Program service expenses are the costs that are directly or indirectly related to providing a NFP's programs, whereas supporting service expenses are expenses for activities not directly related to purpose for which the NFP exists. Supporting service expenses include management & general expenses and fundraising expenses.

Net Assets
Once the revenue & support and expenses have all been accounted for, the last lines on the statement of activities reconcile the change in net assets for each category. The change in net assets is the revenue & support less expenses. The difference, whether positive or negative, is then added to the net assets at the beginning of the year, to get the end of year net assets total. These amounts must equal what is on the statement of financial position.

If you have any questions about the above information, give us a call.
Jack Winter, Jim Repp, Dan Gotter, Tom Kloman and Lee Moter

WKMR Celebrates 50 Years

The First 12 Years: 1968 - 1980
It was the best of times; it was the worst of times, it was 1968 and Winter, Kloman, Moter & Repp, S.C. (WKMR) was just a twinkle in the eye of the accounting industry. Who knew what was in store for the years to come and what a success the firm would become?
 
In the Beginning
Winter, Kloman, Moter & Repp, S.C. was founded in 1968 under the original name of Huss & Associates, S.C. Jerry S. Huss was a local CPA who graduated with both his bachelors and masters degrees from the University of Wisconsin, Whitewater in the mid 1960s. In the beginning of his career, Jerry worked as a CPA for Fontaine-McCurdy, at the time Wisconsin's largest local CPA firm. The firm eventually transformed into Arthur Young & Company in 1968, now Ernst & Young.
 
But Jerry didn't stick around for the transition. He ventured out on his own and opened Huss & Associates, S.C. in late 1968. His practice started out in a small office located on Burleigh Street just west of 124th Street in Brookfield.  Jerry ran the firm as a sole proprietor and worked in that office until 1974 when he acquired the CPA practice of Robert Harris, a prominent Wauwatosa Attorney and CPA. Later that same year, Jerry and Bob both moved their offices to adjacent facilities at 109th and Bluemound in Wauwatosa.
 
As the business grew, so did the staff.  In 1974 Jack Winter came on board and brought along a wealth of experience.  Prior to joining Huss & Associates, S.C.  Jack had spent three years with a local CPA firm; five years with Arthur Young, an international CPA firm; and three years in industry.
 
Jim Repp and Lee Moter both joined the group in 1975. Jim had worked as a small business tax accountant and as manager of the small business department at Coopers & Lybrand before coming on board.  Lee was hired as an auditor for Touche Ross & Co. in their Chicago office after graduating with his Masters in Accounting from the University of Wisconsin, Madison. He came back to Wisconsin to join the talented team at Huss & Associates, S.C.
 
Finally, there was Tom Kloman who started with the firm the following year. Tom was originally from Chicago. He had worked as a tax accountant for Haskins & Sells, as a controller for a cattle ranching operation in Colorado, and as a controller for Koehring Corporation before finding his new home with Huss & Associates, S.C.  Jack, Jim, Lee & Tom all had previous experience with national accounting firms previously known as the "Big 8."
 
Huss & Associates, S.C. was always a progressive firm offering quality service and employing only the best personnel. They always utilized the latest technology and were front runners in electronic word processing and in the use of computers in accounting practices. The firm was also submitting to the rigorous "Quality Third Party Peer Review" procedures by 1977, years before the profession adopted the requirement as a standard of excellence.
 
With ten years of success under their belts, the team at Huss & Associates, S.C. had no plans to slow down. It was full speed ahead. They were looking towards continued growth through building relationships with clients and their community, and staying abreast of new technology and training in the industry.
 
As the firm continued to grow, Dan Gotter joined the group in November 1978.  Prior to joining the team, Dan had been working as the business manager for an auto dealership and was earning his degree from UW Milwaukee. It was by recommendation of his auditing professor at UWM that Dan decided to pursue a career with Huss & Associates, S.C.
 
By 1978 it was apparent that it was time to expand and a second office was added in Oconomowoc. The office was originally located at 156 East Wisconsin Avenue. When the office first opened, Huss & Associates, S.C. occupied two small rooms and there wasn't even a copy machine. Staff members had to go next door to the law offices of Herro, Chapman & Herro to make copies at the cost of five-cents a piece.   Chuck Herro owned the building and in 1979 he agreed to lease the firm four rooms in the building storefront.
 
With Dan leading the effort, the office began to take shape and the client list began to grow. He built the practice on the philosophy exemplified by Jack, Tom, Lee & Jim that in order to succeed you have to get to know your community and truly care about your clients.
 
In 1979 Huss & Associates, S.C. was purchased by Jack Winter, Tom Kloman, Lee Moter and Jim Repp. The focus of the firm was on the clients and providing them with the highest level of service possible.
 
Now that the four had settled in to their new roles as partners and owners, it was time to make it even more official. The formal name change from Huss & Associates, S.C. to Winter, Kloman, Moter & Repp, S.C took place on October 10, 1980.
 
The team was destined for success and it's no wonder that the firm continued to grow. Stay tuned to the next issue of the WKMR Connection to see what happened over the next twelve  years (1980-1992).
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 WJYI-AM 1340 at 2 p.m. on Sunday afternoons, WJUB-AM 1420 on Saturdays at 8:00 a.m. and WHLB- AM 1330 on Saturdays at 1:00 p.m.  More information on the show and a schedule of upcoming guests can be found at   http://bizconnectionwi.com/index.php.


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: 1
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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