Join us for this webinar series encouraging a CAA’s executive management team to proactively tackle legal issues that impact the health and sustainability of its organization. Our faculty of expert presenters includes employment and nonprofit lawyers as well as a financial consultant who will be offering effective ways to strengthen your organization. More details and registration to come in the New Year!
January 15th: Benefits Check-Up: Are You in Compliance with the Affordable Care Act?
February 13: Critical Indicators for CAA Sustainability
March 12: When the Going Gets Tough, Who Gets Going?: Employment Laws Affecting Staffing Options
April 16: Head Start Risk Management
May 14: Changing Needs and Expectations for Chief Financial Officers in Community Action
June 11: Significant CSBG Issues to Examine when Planning for the Future
New FSA “Use It or Lose It” Option and Cafeteria Plan Clarification
Employers now have more options regarding flexible spending arrangements (FSAs) that they offer to their employees. According to new Internal Revenue Service (IRS) guidelines issued in IRS Notice 2013-71, health FSA may now be amended to permit employees to carry over up to $500 of unused FSA funds from one year to the next. A health FSA plan allows employees to set aside pre-tax earnings that can be used to pay for qualified medical expenses. Previously, health FSAs were subject to a strict use-it-or-lose-it policy whereby any unused funds were lost at the end of the plan year, unless the plan provided for a grace period. A grace period permitted an employee to use any unspent prior year FSA funds for up to 2½ months after the end of the prior plan year. Now, employers may elect to offer a $500 carryover option as an alternative to a grace period. A plan may not allow for both a carryover option and a grace period. Employers must adopt a written amendment for the carryover option on or before the last day of the plan year from which FSA amounts may be carried over except for a plan year beginning in 2013 for which they have until the end of the last day of their plan year that begins in 2014. For example, a CAA that has a plan year from April 1, 2013 to March 31, 2014 has until the end of the following plan year, April 1, 2014 to March 31, 2015, to amend its plan for the carryover option. If the CAA wants to permit its employees to carry over from its plan year beginning in 2014 it must make the amendment before the end of the 2014 plan year. More information on the carryover option is available in an article from the law firm Ballard Spahr. Continue reading.
Revised Head Start 5-year Grant Requirements and Guidance
The Administration for Children and Families (ACF) recently issued a revised Information Memorandum (IM) regarding 5-year Head Start project grants. The revised IM updates guidance initially issued in July 2013 setting forth new requirements for 5-year grant recipients and the process for grant renewal. The updates mostly include changes in timeframes and in information that must be submitted to the regional office. All Head Start grantees should carefully review the revised IM. The following highlights the new grant conditions in the original and revised IM and notes in parenthesis where the original guidance has been revised. Continue reading.
On October 26, 2013 the Washington Post reported on a significant level of theft, fraud, and embezzlement at nonprofit organizations. In addition, since 2008 the Internal Revenue Service (IRS) has required greater disclosure of embezzlement or theft. In light of the recent media attention on the misuse of funds and existing IRS regulations, now is a good time for Community Action Agencies to think carefully about financial controls and fraud prevention measures. The firm Venable LLP recently published an article to address the problem of theft, fraud, and embezzlement at nonprofit organizations and to offer immediate steps that can be taken to prevent and detect the misuse of funds.
This e-News Bulletin is part of the National T/TA Strategy for Promoting Exemplary Practices and Risk Mitigation for the Community Services Block Grant (CSBG) program and is presented free of charge to CSBG grantees. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0433. Any opinion, findings, and conclusions, or recommendations expressed In this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.