Uniform Financial Report (UFR)
Audit, Preparation and Advisory Services
Are you fully aware of how best to manage your UFR risks properly? AAF ensures our clients are in compliance with the constantly evolving Uniform Financial Report regulations. This eliminates the risk of penalties including delay of payment or rate increases, disallowance of expenses, and debarment from doing business with the state.
Common Risk Areas in Preparation of the UFR include:
- Surplus revenue retention issues
- Cost reimbursement over-billings
- G&A over-billings
- Fringe benefit over-billings
- Non-reimbursable costs
- Bad debts
- Contract offsets
- “Bonus” plans
- Documentation of time and attendance
- Related party disclosures
- UFR Compliance Requirements
- Proper program identification
Compliance with state regulations surrounding the preparation and filing of the UFR is critical to the operations of human and social services organizations. AAF is widely-regarded as the authority in the nonprofit industry, a reputation we have worked hard to build and maintain. Our expertise in serving the non-profit industry is a result of the knowledge and experiences attained from over 40 years of non-profit auditing and business consulting. Our unmatched experience is applied on each engagement in order to maximize the benefit and value we offer to our clients. The UFR has been an area of focus for us since its inception in 1993 in order to continue to serve our Human/Social Services clients to the best of our ability. We strive to provide business solutions that assist our clients in complying with state regulations and avoid issues that could negatively impact the organization’s profitability and operating net assets.
AAF provides our clients with much more than the required compliance.
UFR advisory solutions include:
- Determining proper functional expense programs.
- Using the optimal administrative allocation methodology.
- Guidance on utilizing your financial accounting system to facilitate the preparation of the UFR.
- Identification and reporting of state and federal non-reimbursable expenses.
- Examining budgeted and allowable income offsets.
- Guidance on avoiding surplus revenue retention issues, including the impact of a full year of Chapter 257 rates.
- Review of the UFR for state compliance issues with a detailed focus on the common risk areas.
- Required reporting for Center Based and Family Day Care Organizations in accordance with the most current regulations.
The exposure we gain from 350+ nonprofit audits and filing over 140 UFRs annually is unmatched by our peers. AAF partners are frequently called upon to present training sessions on preparing the UFR, including updates to UFR regulations and common risk areas. Our clients benefit from our long working relationship with the decision makers at the Commonwealth of Massachusetts Operational Services Division (OSD), which allows us to research complex matters and offer accurate, cutting-edge solutions.