BeautyLink - Volume 6, Issue 2 - (Page 41)

Significant Changes NACCAS NEW AUDIT REPORT REQUIREMENTS REPORT REQUIREM O EQUIR EQUIREMENTS BY DAVE MESKO, CPA n its February 2014 meeting, the NACCAS Board of Commissioners adopted two significant changes affecting the Audited Financial Statement reports of schools it accredits. Here is a summary of the NACCAS Audit Report changes, which took effect immediately upon their publication. As you'll see after reading the conclusion of this article, compliance with these new audit report requirements is vitally important to your school. I 1 The CPA who performs your annual Financial Statement Audit must now submit the Audit Report directly to NACCAS in an electronic format. You can create a user profile for your CPA firm using your NACCAS member login portal. Don't wait until the last minute to create the portal-NACCAS may not have enough time to process your portal request (they accredit over 1,000 schools, all of whom will be setting up their auditors' portals at approximately the same time). Allow time for your auditor to test their portal to ensure it works before the audit report submission deadline. Finally, don't wait until the last minute to ask your auditor to submit your Audited Financial Statements. NACCAS expects very heavy traffic on the portal just before the June 30 deadline for calendar year schools to submit their audit reports through this new electronic process (which, needless to say, hasn't yet proven itself through trial by fire). NACCAS imposes a $250 fee for schools whose auditors do not submit their audit reports using the new electronic process. Due to the short notice, the fee is waived for audit reports whose filing deadline is June 30, 2014, or earlier. 2 The footnotes to the Audited Financial Statements must now include four financial metrics that are reviewed by NACCAS as part of its annual evaluation of your school. Your Audited Financial Statements probably already include a "Regulatory" footnote that discloses your U.S. DOE Composite Ratio and related information, to advise the readers of your financial statements that your school is subject to a variety of NACCAS, U.S. DOE and state regulations. This footnote is a natural place for you to add the newly NACCAS demands that their schools aspire to very high standards in a number of areas to ensure curricula and teaching methods meet the highest standards of the profession and that students receive a quality education. required NACCAS disclosures, which will allow NACCAS to determine at a glance if your school meets the requirements of their Standard VII, "Financial Practices Management." Now let's discuss the four NACCAS Financial Standards that have to be added to the footnotes, and the required minimum scores for each. As you'll remember from the challenging but ultimately rewarding process of becoming accredited, NACCAS demands that their schools aspire to very high standards in a number of areas to ensure curricula and teaching methods meet the highest standards of the profession and that students receive B E AUT YL I NK | BA L* A N C E | 2 0 1 4 | 41

Table of Contents for the Digital Edition of BeautyLink - Volume 6, Issue 2

Message From the Aacs President & Cea Chair
The Workings of Washington
Creating a Recipe for the Future
Voices From the Trenches
Creating Harmony in the Classroom
Manlink
Living an Integrated Life
A Student’s Perspective
And Then There’s Compliance
This Hairstylist Is on Fire!
Keeping the Enrollment Funnel Flowing
Beauty Changes Lives
Significant Changes
Battle of the Strands
Cyber Liability and Data Security
Superstar Graduate
Plagued by More Delays
Voices From the Classroom
Launching a Blow Out Career
People & Places
New Products & Services
Associate Member Profiles: Distributors
New School Members
Upcoming 2014-15 Events
Index to Advertisers
advertisers.com

BeautyLink - Volume 6, Issue 2

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