Resources for Sarbanes-Oxley (SOX)

Grant Thornton releases survey on trends in the not-for-profit sector

carolinanewswire.com

The governance landscape of Charlotte’s not-for-profit community has changed dramatically since the implementation of Sarbanes-Oxley. Today, 87 percent of not-for-profit organizations have created new governance policies compared with 20 percent in 2003, according to Grant Thornton LLP’s fifth annual National Board Governance Survey for Not-for-Profit Organizations.

Some notable board governance policy changes that organizations have made include:

* 92% of respondents have implemented new accounting policies and procedures, compared to only 59 percent in last year’s survey.
* Almost nine out of 10 (87 percent) respondents have adopted a written investment policy, compared to 63 percent in 2006.
* Only 30 percent of survey respondents have a policy in place requiring the board or one of its committees to review the organization’s Form 990, but this remains an emerging trend.

“Form 990 is the most public financial document available about a not-for-profit organization. Many more interested parties will read a not-for-profit organization’s Form 990 than will ever read its audited financial statements,” says Janet Malzone, a partner in the Charlotte not-for-profit industry practice. “To ensure an organization’s information is presented completely and correctly, the audit or finance committee should review the Form 990 before it is filed,” adds Malzone.

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