Attention nonprofits: The Operational Services Division (OSD) of the Executive Office for Administration and Finance just released updates to its Uniform Financial Reporting statements. You may remember our blog on this from a few years ago, Uniform Financial Reporting Statements—Due November 15th. Here’s what’s changed since then.

What is UFR?

Human and social service contractors in Massachusetts who receive funds under purchase of service contracts, as defined by the MA Operational Services Division (OSD), are required to file an annual Uniform Financial Report (UFR).

As our previous blog covers, The Uniform Financial Statements and Independent Auditor’s Report (UFR) specifically applies to organizations who deliver services to Massachusetts’ vulnerable consumers via contracts with state departments.

The Commonwealth of Massachusetts has a responsibility to provide a strong system of public accountability and to protect the interests of the consumers being served by Commonwealth departments. Therefore, contractors must file the UFR on an annual basis to achieve this objective.

UFR changes

1. Compensation disclosure in UFR Schedule A- On Schedule A, your organization is now required to disclose its principals’ compensation from the filing entity, parent organization, related parties and affiliates.
2. Certain expense account line items reported in Supplemental Schedules A & B are now consolidated- One example- 18E Direct Care Program Consultants 201 and 19E Temporary Help 202 are now consolidated and the total is to be reported on line 18E.
3. Certain staffing account line items reported in Supplemental Schedules B are now consolidated- One example- Line 1S Program Director, Line 2S Program Function Manager, Line 3S Assistant Program Director and Line 4S Supervising Professional are consolidated and the total will be reported in Line 2S.
4. Certain non-reimbursable expense account line items reported in Supplemental Schedules A & B are now consolidated- Line 3N Direct Other Program/Operating Expense and Line 6N Direct Other Expense are consolidated and the total is reported on line 3N.

In addition:

• A separate detail schedule for line 35E Other Expense is only required if the total amount exceeds $5,000.
• Officers and Managers’ salary cap has increased to $183,448.93 for fiscal year 2019 (up from $178,036.35 in FY 2018)
• A separate schedule for lines 26E and 45E Vehicle Expenses and Administrative Vehicle Expenses detailing the passenger vehicles is not required for passenger vans/vehicles holding 7 or more passengers. Prior rules held that it was not required for passenger vans/vehicles holding 8 or more passengers.

What about ASU 2016-14 changes?

In addition, OSD has updated its UFR excel templates to reflect the changes under ASU 2016-14 to net asset classes. Check out our blog series New Financial Reporting Standards for Nonprofits for more on this.

You’ll need to review these changes to determine whether changes need to be made to your organization’s financial reporting systems! We can help.

Questions on UFR statement changes? Contact us.