April, 2016 | RKL LLP
Posted on: April 27th, 2016

RKL Senior Living Services Manager Named to “Forty Under 40” List

James M. Spencer, CPA, MBA

PRESS RELEASE

WYOMISSING, PA (April 27, 2016) – Reinsel Kuntz Lesher LLP (RKL), Certified Public Accountants and Consultants, today announced that James M. Spencer, CPA, MBA, has been named one of Lehigh Valley Business’ 2016 “Forty Under 40” award recipients, in recognition of his commitment to professional excellence, business growth and community service.

“Jamie is a trusted business advisor to his clients, an emerging leader in our firm and an active supporter of his community,” RKL CEO Edward W. Monborne said. “We’re proud that Lehigh Valley Business agrees by selecting Jamie for this well-deserved recognition.”

For more than a decade, Spencer has helped clients achieve sustainable success in an ever-changing regulatory environment. He has provided a variety of accounting and consulting services to clients throughout RKL’s geographic footprint, but in recent years has specialized his focus as a Manager in the firm’s Senior Living Services Consulting Group. Spencer’s commitment to remaining on the cutting edge of industry issues led him to form RKL’s Data Analysis Working Group in response to the increasingly important role of data analysis in medical care quality monitoring and reimbursement.

Spencer is a 2013 graduate of the Leadership Berks program at Alvernia University, where he spearheaded a project with Reading Film, a nonprofit that works to attract filmmakers to Berks County. He currently serves as Board Treasurer, chair of the Finance Committee and member of the Governance Committee for the Berks Community Health Center.

Spencer received his B.S. in Finance from Northern Arizona University and his MSA/MBA from Northeastern University in Boston. He lives in Wyomissing with his wife and two young children.

The “Forty Under 40” awards program celebrates the Greater Lehigh Valley’s most accomplished young businessmen and women. Spencer will be celebrated along with his fellow honorees at a ceremony scheduled for June 13 at the Historic Hotel Bethlehem.

For more information on LVB’s “Forty Under 40” Awards, visit http://www.lvb.com/section/40-Under-40-Awards.

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Posted on: April 26th, 2016

New Federal Overtime Rules: Where Do They Stand?

Business people in officeNew overtime standards unveiled by the U.S. Department of Labor (DOL) last June made headlines due to the fact that it would expand overtime protections to an additional five million white-collar employees. After making its way through Washington’s regulatory approval channels, the proposed changes last month reached the last step in the finalization process: the federal Office of Management and Budget (OMB). The same day the proposal was submitted to OMB, Congress put forth legislation that would quash these changes and send DOL back to the drawing board to reconsider overtime reforms.

As regulatory and legislative forces wrestle over the outcome of these overtime changes, let’s take a step back and examine what the proposed regulations would mean for employee compensation.

Current overtime rules

Employees paid hourly are considered non-exempt and are automatically eligible for overtime pay, under the Fair Labor Standards Act (FLSA). Salaried employees, however, can be either exempt from overtime or non-exempt from overtime. Employees must fall under a certain wage threshold to be exempt from overtime. This threshold is $455 a week or less (which equals a yearly salary of $23,660 or under).

For those who make more than $23,600 a year, employers are required by the FLSA to perform a “duty test” to assess whether the employee’s duties are considered executive, administrative or professional. If the employee effectively qualifies for one of these classifications, they are permitted to be classified as exempt from overtime earnings under the FLSA’s “white-collar exemption.”

Proposed overtime changes

The new regulations put forth by DOL would more than double the prior threshold to $970 a week. This means that employees who earn a yearly salary of $50,440 or less are now eligible for overtime pay for hours worked over the standard 40-hour week. The new salary benchmark will also be adjusted automatically going forward on an annualized basis. The methodology for calculation has yet to be finalized, but could be tied to inflation indexes or based on 40 percentile of weekly earnings for full time salaried workers.

Issues not addressed by proposed changes

While it did not propose changing them in this set of regulations, DOL did solicit feedback how the current “duty test” is functioning and whether it should be altered to better calculate the “white-collar exemption.” Changes in these areas could further alter the calculation and payment of overtime, so comments and feedback are being closely monitored by trade associations like the Society for Human Resource Management. DOL also requested feedback on the possibility of using nondiscretionary bonuses (those that the employer is obligated to pay) to fulfill part of the salary requirement.

What’s next?

OMB review can take between 30 to 90 days. If approved by OMB, the new overtime rules could take effect anytime between 30 to 60 days after approval. Using this timeline, final publication could occur as early as June 2016. So it is imperative that businesses and HR professionals stay tuned and consider the impact to their operations should these regulations become official.

As we stay tuned for the outcome of these regulations, businesses with questions about how these changes may impact employee status or compensation may contact me at 717.394.5666 or dhoffer@rklcpa.com.

RKL Human Resources DirectorContributed by Danielle J. Hoffer, SPHR, Director of Human Resources for RKL. Danielle provides strategic leadership by working closely with the CEO, Partners in Charge and Functional Leaders to support the firm’s overall business plan and strategic direction. She is also responsible for Human Resources consulting services for clients.

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Posted on: April 25th, 2016

Local CPA Firm Announces New Hire in Lancaster Office

Robert E. PozeskyPRESS RELEASE

LANCASTER, PA (April 25, 2016) – Reinsel Kuntz Lesher LLP (RKL), Certified Public Accountants and Consultants, today announced that Robert E. Pozesky has joined the firm as a Manager in its Business Consulting Services Group.

Pozesky brings over 20 years of operational leadership and consulting experience to his role at RKL. He has a long track record of successfully executing Six Sigma, Lean and Organizational Development strategies to support growth and performance improvement for clients in the manufacturing, distribution, healthcare, construction and service industries.

Prior to joining RKL, Pozesky led an operations consulting practice serving clients ranging from small family businesses to Fortune 100 companies. He also held roles as Vice President of Operations and Director of Performance Improvement. Pozesky is a Certified Manager of Quality/Organizational Excellence by the American Society for Quality and a Six Sigma Black Belt.

Pozesky holds a B.S. in Industrial Engineering and a Masters in Operations Research & Industrial Engineering from Penn State University. Pozesky and his wife reside in West Hempfield and have two grown sons. In his free time, he enjoys cycling, hiking, skiing and traveling.

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Posted on: April 12th, 2016

How to Prepare Now for Your Next Employee Benefit Plan Audit

Employee benefit plan audit prepFor companies that provide benefit plans to employees, spring means annual audit season is around the corner. Though it’s not something most plan administrators look forward to, the audit can go much more smoothly when several tasks are completed ahead of time. The rules and regulations surrounding employee benefit plan (EBP) audits may change, but what remains constant is how preparation, organization and communication can positively impact the audit experience.

Preparation pays off

As a plan administrator, you are responsible for coordinating data and ensuring timely completion of the EBP audit. So why not get a head start by performing a check-up on your plans prior to the start of the audit? Review for compliance with applicable laws and regulations, and make sure it is operating according to the plan document. Be sure to reconcile transactions and activity on a regular basis, at least quarterly. Conducting these routine tasks prior to an audit gives you an idea of what to expect going into the process, and gives you time to correct any mistakes before fieldwork starts.

Organization equals efficiency

Before the fieldwork starts, your auditor will provide you with a request list. It is critical to review this list in a timely fashion so you can compile the requested information in the desired format to meet the auditor’s timeline. For maximum organization, however, administrators should be in constant contact with service providers who hold the plan information and records. Getting data as early and as often as possible is key to prevent delays, require less from your staff during the audit and use the auditor’s time most efficiently.

Communication increases clarity

As with most projects, identifying roles and streamlining communication bode well for a stress-free audit. Designate one staff person to serve as the point of contact for your company and the auditor. Ideally, this person should be someone heavily involved with administering the benefit plans. Having one person communicate and receive information will cut down on miscommunication and redundancies. Before the audit begins, it is extremely helpful to update your auditor about any changes to the plan document or any operational or compliance issues encountered within the last year. Flagging these issues early in the audit process lets your audit team incorporate them into their work and evaluate the impact on the outcome.

At RKL, our employee benefit plan auditors remain in contact with clients throughout the year as part of our effort to help them meet their compliance and fiduciary responsibilities. To learn more about how we can help your company with its EBP audit, contact your RKL advisor or one of our local offices.

Wendy Lakatosh, CPAContributed by Wendy M. Lakatosh, CPA, Partner in RKL’s Audit Services Group. Throughout her more than 19 years of experience in public accounting and auditing, Wendy has gained significant experience serving employee benefit plan clients. She has served a variety of clients from small, private, middle-market entities to large, multi-location companies across many industries.

 

 

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Posted on: April 5th, 2016

Why Your Nonprofit’s 990 is More Than Just a Tax Form

Words about nonprofit organizationsCompleting the IRS Form 990 is an annual ritual for most tax-exempt organizations. Nonprofit leaders understand that this form transmits important financial and operational information to the federal government, but what they might not recognize is the impact the Form 990 can have beyond tax compliance. Since the Form 990 is a publicly available document that contains a wide range of information about a nonprofit, it is also a valuable public relations and development tool for organizations.

In particular, there are two sections of the Form 990 that can help enhance a nonprofit’s mission and message with minimal additional effort and consideration.

“Statement of Program Service Accomplishments” (Page 2, Part III)

  • What it is: This section requests descriptions of an organization’s mission and program services.
  • Opportunity it presents: Move beyond basic descriptions – this is an opportunity to brag about the impact the nonprofit is having on the community. Use this section to really sell the programs the organization offers by describing the program and providing quantitative information on its success. The narrative provided here will support the numbers listed throughout in the tax return.
  • Tips to maximize benefit: Ask program managers for a summary of last year’s activities and achievements and use this to “beef up” your return. Craft compelling descriptions; for example, “The Children’s Home housed 40 children and was able to get family placements for 13 children in 2015,” conveys much more success and positive impact than “Running a children’s home.” Review these descriptions each year, update them for program changes and be sure quantitative measures make sense. Your development team will be able to use this information in their efforts to gain financial support throughout the year.

“Governance, Management, and Disclosure” (Page 6, Part VI)

  • What it is: This section is a long list of “Yes” or “No” questions related to the management and personnel of the organization.
  • Opportunity it presents: This laundry list of questions can also serve to guide nonprofits in the development of best practices. The policies that the IRS asks about in this section are not all required by law, but are policies that nonprofits should have in place. Conversely, if the organization doesn’t have these policies, this is an opportunity to understand why and be able to explain the decision if questioned.
  • Tips to maximize benefit: The answers give in this section indicate who has control and voting rights within the nonprofit. It can also help illustrate any potential conflicts of interest, so take this opportunity to think through how those would be handled. This section of the return can also be helpful in recruiting and onboarding new board members or management since it provides an overview of how the nonprofit is run and what they can expect regarding committees, voting rights and policies.

These two sections of the Form 990 demonstrate its impact beyond simple financial reporting. At any given time, potential donors, grant givers, members of the media and the public can access this information to learn more about an organization, determine its worthiness for financial support and evaluate the success with which it achieves the stated mission.

Want to make the most out of your nonprofit’s Form 990? RKL has a team of professionals dedicated to helping position nonprofits for success. Contact one of our local offices today.

Stephanie E. Kane, CPAContributed by Stephanie E. Kane, CPA, Supervisor in RKL’s Tax Services Group. Her client responsibilities include serving clients in a wide variety of industries with a focus on not-for-profit entities.

 

 

 

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