Author: Alexis Long

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Financial Institutions and Banking

Bank Wire

CAA provides COVID-19 relief for banks

The Consolidated Appropriations Act (CAA), passed in late December 2020, contains a variety of COVID-19 relief provisions, including a second round of stimulus payments to individuals, enhanced unemployment benefits, and expansion of the Paycheck Protection Program (PPP). The act also offers some bank-specific relief. For example, it:

  • Delays the compliance deadline for the current expected credit loss (CECL) accounting standard until the earlier of 1) the first day of the bank’s fiscal year that begins after termination of the COVID-19 public health emergency, or 2) January 1, 2022; and
  • Extends the time during which banks may elect to temporarily suspend troubled debt restructuring (TDR) accounting for certain COVID-19-related loan modifications until the earlier of 1) 60 days after the public health emergency ends, or 2) January 1, 2022.

It also establishes a $9 billion fund to provide low-cost, long-term capital investments to qualifying banks. To qualify, they need to be community development financial institutions or minority depository institutions.

SBA guidance on PPP loans

After the CAA authorized “second-draw” forgivable PPP loans, the Small Business Administration (SBA) and Treasury Department issued rules for these loans. Among other things, the rules clarify that: the SBA will guarantee 100% of second-draw loans; no collateral or personal guarantees will be required; the interest rate will be 1%, calculated on a noncompounding, nonadjustable basis; maturity will be five years; and all loans will be processed by lenders under delegated authority.

It may rely on borrower certifications to determine the borrower’s eligibility and use of loan proceeds. (Note: The borrower must substantiate compliance with eligibility requirements by the time they submit a forgiveness application.)

Simplified PPP forgiveness application

The CAA simplifies the forgiveness application for businesses that borrow less than $150,000. These borrowers will submit a one-page application that includes the total loan value, the estimated portion of the loan spent on payroll, and the number of employees retained as a result.

Fintech partnership guide

Community banks are increasingly partnering with “fintech” companies to offer their customers access to the latest banking technology tools. But these partnerships are fraught with practical and regulatory compliance challenges. Recently, a member of the Federal Reserve Board announced that the Fed would work with other banking agencies to develop a fintech vendor due diligence guide for community banks as well as enhanced interagency guidance for third-party risk management. This guidance is expected to “eliminate the need for community banks to navigate multiple supervisory guidance documents on the same issue” and “enhance clarity on supervisory expectations for community bank partnerships with fintech companies.”

 

©2021

 

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Financial Institutions and Banking

Online Account Opening: Managing the Risk

In recent years, banking customers have increasingly relied on electronic banking tools to open accounts, make deposits, transfer funds and otherwise manage their money — and the COVID-19 pandemic has accelerated this trend. All of these activities increase an institution’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance risks, particularly the opening of online accounts. So, while offering these conveniences can be attractive to current and prospective customers, you’ll need to implement policies, procedures and controls to mitigate the risk.

Recognizing risk factors

In its BSA/AML Manual, the Federal Financial Institutions Examination Council (FFIEC) emphasizes that accounts opened online — that is, without face-to-face contact — pose a greater risk for money laundering and terrorist financing because:

  • It’s more difficult to positively verify the applicant’s identity,
  • The customer may be outside the bank’s targeted geographic area or country,
  • Customers — particularly those with ill intent — may view online transactions as less transparent,
  • Transactions are instantaneous, and
  • Online accounts may be used by a “front” company or unknown third party.

In light of this enhanced risk, the FFIEC cautions banks to consider how an account was opened as a factor in determining the appropriate level of account monitoring.

Minimizing risks

To reduce the risks associated with online account opening, banks should develop an effective customer identification program (CIP) and ongoing customer due diligence (CDD) processes as part of a robust, risk-based BSA/AML compliance strategy.

To comply with CIP requirements, an individual opening an account must provide, at a minimum, his or her name, date of birth, address and taxpayer identification number (or other acceptable identification number for non-U.S. persons). In addition, if an account is opened for a legal entity — such as a corporation, partnership or LLC — the bank must verify the identities of the entity’s beneficial owners.

Verifying applicants’ identities

A significant challenge in electronic banking is verifying the identity of someone opening an account online (including a person opening an account on behalf of a legal entity). For in-person transactions, bank personnel often examine identification documents, such as driver’s licenses or passports, but this may not be possible for accounts opened online.

For online transactions, banks should develop reliable nondocumentary methods of verifying an individual’s identity. These may include comparing the information provided at account opening with information from a credit reporting agency, public database or other source. They also may include contacting the person (for example, calling them at work or sending them a piece of mail they must respond to), checking references with other financial institutions, obtaining a financial statement, or asking “out of wallet” questions, such as previous addresses, former employers or mortgage loan amounts.

The bank should develop alternate or backup verification methods for situations in which one of these methods fails. For example, if there’s an identification mismatch, the applicant may be required to bring identification in person to a bank branch.

In addition, as with accounts opened in person, the bank should check the person’s name against lists of known or suspected terrorists or terrorist organizations maintained by the Office of Foreign Assets Control. It’s also a good idea, for ongoing monitoring and CDD purposes, to collect information about the purpose of the account, the occupations of the account owners and the source of funds.

Due diligence

After an account is opened online and the applicant’s identity is verified, you’ll want to conduct ongoing customer due diligence. That means, among other things, monitoring account activity for unusual or suspicious activities.

©2021

Categories
Financial Institutions and Banking

Should your bank use third-party vendors?

In the uncertain economy resulting from the COVID-19 pandemic, community banks continue to streamline operations, improve efficiency and eliminate waste so that they can survive — and thrive. To help in this process, they’re increasingly turning to outside vendors to provide specialized services beyond the bank’s usual offerings. If your bank uses third-party vendors, though, you need to be aware of the ins and outs.

Evaluate liability

Outsourcing to a third party doesn’t relieve a bank from responsibility and legal liability for compliance or consumer protection issues. And as banks and vendors increasingly rely on evolving technologies to deliver products and services, their exposure to ever-changing cybersecurity risks demands constant vigilance.

Even if you have a solid vendor risk management program in place, you’ll need to review it periodically. Banking regulators expect your program to be “risk-based” — that is, the level of oversight and controls should be commensurate with the level of risk an outsourcing activity entails. But here’s an important caveat: That risk can change over time. Some vendors, such as appraisal and loan collection companies, have traditionally been viewed as relatively low risk. But in today’s increasingly cloud-based world, any vendor with access to your IT network or sensitive nonpublic customer data poses a substantial risk.

Assess risk

Here are some ways to review your vendor risk management program:

Conduct a risk assessment. Determine whether outsourcing a particular activity is consistent with your strategic plan. Evaluate the benefits and risks of outsourcing that activity as well as the service provider risk. This assessment should be updated periodically.

Generally, examiners expect a bank’s vendor management policies to be appropriate in light of the institution’s size and complexity. They also expect more rigorous oversight of critical activities, such as payments, clearing, settlements, custody, IT or other activities that could have a significant impact on customers — or could cause significant harm to the bank if the vendor fails to perform.

Thoroughly vet your service providers. Review each provider’s business background, reputation and strategy, financial performance operations, and internal controls. The depth and formality of due diligence depends on the risks associated with the outsourcing relationship and your familiarity with the vendor. If your agreement allows the provider to outsource some or all of its services to subcontractors, be sure that the provider has properly vetted each subcontractor. The same contractual provisions must apply to subcontractors and the provider should be contractually accountable for the subcontractor’s services.

Diversify vendors. Using a single vendor may provide cost savings and simplify the oversight process, but diversification of vendors can significantly reduce your outsourcing risks, particularly if a vendor has an especially long disaster recovery timeframe.

Ensure contracts clearly define the parties’ rights and responsibilities. In addition to costs, deliverables, service levels, termination, dispute resolution and other terms of the outsourcing relationship, key provisions include compliance with applicable laws, regulations and regulatory guidance; information security; cybersecurity; ability to subcontract services; right to audit; establishment and monitoring of performance standards; confidentiality (in the case of access to sensitive information); ownership of intellectual property; insurance, indemnification and business continuity; and disaster recovery.

Review vendors’ disaster recovery and business continuity plans. Be sure that these plans align with your own and are reviewed at least annually, and that vendors have the ability to implement their plans if necessary.

Monitor vendor performance. Monitor vendors to ensure they’re delivering the expected quality and quantity of services and to assess their financial strength and security controls. It’s particularly important to closely monitor and control external network connections, given the potential cybersecurity risks.

Conduct independent reviews. Banking regulators recommend periodic independent reviews of your risk management processes to help you assess whether they align with the bank’s strategy and effectively manage risks posed by third-party relationships. The frequency of these reviews depends on the vendor’s risk-level assessment, and they may be conducted by the bank’s internal auditor or an independent third party. The results should be reported to the board of directors.

Stay aware

Having a robust vendor risk management program in place at your bank is the key to benefiting from vendors’ specialized skills and abilities while avoiding legal and regulatory problems. We can help you stay on top of the latest regulations and rules pertaining to third-party vendor use.

©2021

Categories
Financial Institutions and Banking

5 Tips for Fair Lending Compliance

Community banks need to develop and follow fair lending practices; providing customers with nondiscriminatory access to credit is, of course, the right thing to do. What’s more, violations of fair lending laws and regulations can result in costly litigation and enforcement actions, hefty monetary penalties and serious reputational damage.

What are the laws?

The two primary fair lending laws are the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). The FHA prohibits discrimination in residential real estate-related transactions based on race or color, national origin, religion, sex, familial status (for example, households with one or more children under 18, pregnant women, or people in the process of adopting or otherwise gaining custody of a child), or handicap.

Similarly, the ECOA prohibits discrimination in credit transactions based on race or color, national origin, religion, sex, marital status, age (assuming the applicant has the capacity to contract), an applicant’s receipt of income from a public assistance program, or an applicant’s good faith exercise of his or her rights under the Consumer Credit Protection Act.

The Home Mortgage Disclosure Act (HMDA) requires certain lenders to report information about mortgage loan activity, including the race, ethnicity and sex of applicants. Finally, the Community Reinvestment Act (CRA) provides incentives for banks to help meet their communities’ credit needs.

How can you comply?

Here are five tips for developing an effective compliance program:

  1. Conduct a risk assessment. Conduct a thorough assessment to identify your bank’s fair lending risks based on its size, location, customer demographics, product and service mix, and other factors. This assessment can pinpoint the bank’s most significant risks. It also can reveal weaknesses in the bank’s credit policies and procedures and other aspects of its credit operations. It’s particularly important to examine the bank’s management of risks associated with third parties, such as appraisers, aggregators, brokers and loan originators.
  2. Develop a written policy. A comprehensive written fair lending policy is key to help minimize your bank’s risks. And by demonstrating your commitment to fair lending, this document can go a long way toward mitigating the bank’s liability in the event of a violation. The policy should cover all of the bank’s products, services and credit operations and provide details about which practices are permissible and which aren’t.
  3. Analyze your data. Analyzing data about your lending and other credit decisions is important for two reasons: First, it’s the only way to determine whether disparities in access to credit exist for members of the various protected classes. These disparities don’t necessarily signal that unlawful discrimination is taking place — but gathering this data is the only way to make this determination.

Second, lending discrimination isn’t limited to disparate treatment of protected classes. Banks are potentially liable under the FHA and ECOA if their lending practices have a disparate impact on protected classes. For example, a policy of not making single-family mortgage loans under a specified dollar amount may disproportionately exclude certain low-income groups, even though the policy applies equally to all loan applicants. Banks can defend themselves against allegations of discrimination based on disparate impact by showing that the policy was justified by business necessity and that there was no alternative practice for achieving the same business objective without a disparate impact.

  1. Provide compliance training. Even the most thorough, well-designed policy won’t be worth the paper it’s printed on unless you provide fair lending compliance training for bank directors, management and all other relevant employees (and evaluate its effectiveness). Indeed, lack of training is a red flag for bank examiners. (See “Discrimination risk factors” at X.)
  2. Monitor compliance. You’ll need to monitor your bank’s compliance with fair lending laws and promptly address any violations or red flags you discover. You can do this by, among other things, performing regular data analysis, monitoring and managing consumer complaints, keeping an eye on third-party vendors, and conducting periodic independent audits of your compliance program (by your internal audit team or an outside consultant).

Reduce your risk

Fair lending laws are complex, and guidance can sometimes be ambiguous. Although a full discussion of the subject is beyond the scope of this article, the five tips outlined here are a good start in helping you evaluate the effectiveness of your fair lending compliance program.

Sidebar: Discrimination risk factors

A useful source of guidance on fair lending compliance is the Interagency Fair Lending Examination Procedures used by federal financial agencies. Among other things, the guidelines list the following compliance program discrimination risk factors:

  • Overall compliance record is weak,
  • Legally required monitoring information is nonexistent or incomplete,
  • Data or recordkeeping problems compromise the reliability of previous examination reviews,
  • Fair lending problems were previously found in one or more products or subsidiaries, and
  • The bank hasn’t updated compliance policies and procedures to reflect changes in law or in agency guidance.

If any of these problems are present in your institution, it’s important to rectify them as soon as possible. That way, you’ll avoid penalties and at the same time contribute to fair lending practices.

©2021

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News

Biden Administration Unveils Tax Blueprint as Part of American Jobs Plan

The Biden administration on March 31, 2021, unveiled a jobs and infrastructure plan, the American Jobs Plan, to address the nation’s pressing infrastructure needs. The plan calls for about $2 trillion in spending over eight years. To pay for these expenditures, the plan also includes a proposed overhaul of the corporate tax system that would increase the corporate tax rate and the global minimum tax, eliminate federal tax benefits for fossil fuel companies, and strengthen enforcement against corporations.

While the proposed spending would be spread out over eight years, the tax increases would continue for 15 years.

Proposed Tax Measures–The White House released a Fact Sheet that lists the proposed tax measures under the plan:

Corporate Tax Rate — The Biden plan would increase the corporate tax rate from 21% to 28%. The rate had been reduced by the Trump administration from 35% to the current rate of 21%.

Global Intangible Low-Taxed Income (GILTI) Modifications – President Biden’s proposal would increase the effective rate on GILTI for U.S. corporations to 21% and calculate GILTI on a country-by-country basis. It also would eliminate the rule that allows U.S. companies to reduce their GILTI inclusion by 10 percent of their average adjusted basis of qualified business asset investments.

Encourage Other Countries to Adopt a Minimum Tax Regime – The plan proposes to encourage other countries to adopt strong minimum taxes on corporations, and deny deductions to foreign corporations on payments that could allow them to strip profits out of the U.S. if they are based in a country that does not adopt a strong minimum tax.

Inversions – In addition to enacting reforms that would remove incentives for U.S corporations to invert, President Biden’s proposal would make the inversion process more difficult.

Offshoring/Onshoring Jobs –President Biden’s reform proposal would deny companies deductions generated by offshoring jobs and would also propose a tax credit to support the onshoring of jobs.

Eliminate the Foreign Derived Intangible Income (FDII) deduction and Invest in R&D Incentives – The Biden plan proposes the complete elimination of the FDII deduction, which was introduced as part of the Tax Cuts and Jobs Act. The revenue collected as a result of the repeal of the FDII deduction would be used to expand other R&D investment incentives.

Minimum Tax on Book Income – The plan includes a proposed 15 percent minimum tax on U.S. corporations’ book income, which would apply only “to the very largest corporations,” according to the Fact Sheet.

Tax Preferences for Fossil Fuels – Biden’s plan would eliminate all subsidies, loopholes, and special foreign tax credits for the fossil fuel industry.

Enforcement – The plan calls for increased investment in enforcement so that the Internal Revenue Service has the necessary resources to effectively enforce the tax laws.

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Financial News

Paycheck Protection Program (PPP) Extension Act of 2021

President Biden has signed the Paycheck Protection Program Extension Act of 2021, which extends the covered period for the PPP. Before the law was passed, the loan application deadline was set to expire on March 31, 2021.

The new law extends the deadline to May 31, 2021. In addition, the Small Business Administration (SBA) is given until June 30, 2021 to process loan applications submitted before June 1. The PPP permits the SBA to provide loans to qualified businesses affected by the pandemic. The loans must be used for payroll and certain other costs. Visit SBA’s website for more information. 

Contact us if you have questions about forgivable PPP loans or if you would like to apply for one so you can retain employees at your business. 

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Helpful Articles Tax

Didn’t contribute to an IRA last year? There may still be time.

If you’re getting ready to file your 2020 tax return, and your tax bill is higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2021 filing date and benefit from the tax savings on your 2020 return.

Who is eligible? You can make a deductible contribution to a traditional IRA if:

You (and your spouse) aren’t an active participant in an employer-sponsored retirement plan, or you (or your spouse) are an active participant in an employer plan, but your modified adjusted gross income (AGI) doesn’t exceed certain levels that vary from year-to-year by filing status.

For 2020, if you’re a joint tax return filer and you are covered by an employer plan, your deductible IRA contribution phases out over $104,000 to $124,000 of modified AGI. If you’re single or a head of household, the phaseout range is $65,000 to $75,000 for 2020. For married filing separately, the phaseout range is $0 to $10,000. For 2020, if you’re not an active participant in an employer-sponsored retirement plan, but your spouse is, your deductible IRA contribution phases out with modified AGI of between $196,000 and $206,000.

Deductible IRA contributions reduce your current tax bill, and earnings within the IRA are tax deferred. However, every dollar you take out is taxed in full (and subject to a 10% penalty before age 59 1/2, unless one of several exceptions apply).

IRAs often are referred to as “traditional IRAs” to differentiate them from Roth IRAs. You also have until April 15 to make a Roth IRA contribution. But while contributions to a traditional IRA are deductible, contributions to a Roth IRA aren’t. However, withdrawals from a Roth IRA are tax-free as long as the account has been open at least five years and you’re age 59 1/2 or older. (There are also income limits to contribute to a Roth IRA.)

Here are two other IRA strategies that may help you save tax.

1. Turn a nondeductible Roth IRA contribution into a deductible IRA contribution. Did you make a Roth IRA contribution in 2020? That may help you in the future when you take tax-free payouts from the account. However, the contribution isn’t deductible. If you realize you need the deduction that a traditional IRA contribution provides, you can change your mind and turn a Roth IRA contribution into a traditional IRA contribution via the “recharacterization” mechanism. The traditional IRA deduction is then yours if you meet the requirements described above.

2. Make a deductible IRA contribution, even if you don’t work. In general, you can’t make a deductible traditional IRA contribution unless you have wages or other earned income. However, an exception applies if your spouse is the breadwinner and you are a homemaker. In this case, you may be able to take advantage of a spousal IRA. What’s the contribution limit? For 2020 if you’re eligible, you can make a deductible traditional IRA contribution of up to $6,000 ($7,000 if you’re 50 or over).

In addition, small business owners can set up and contribute to a Simplified Employee Pension (SEP) plan up until the due date for their returns, including extensions. For 2020, the maximum contribution you can make to a SEP is $57,000.

If you want more information about IRAs or SEPs, contact one of our partners or ask about it when we’re preparing your tax return. We want to help you save the maximum tax-advantaged amount for retirement. © 2021

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News Paris, TN Press Releases

Alexander Thompson Arnold Names New Partner

FOR IMMEDIATE RELEASE

For more information contact:

Alexis Long, Marketing Director

731-427-8571

along@atacpa.net

 

ALEXANDER THOMPSON ARNOLD NAMES NEW PARTNER

Alexander Thompson Arnold PLLC (ATA) is excited to name Elizabeth Russell Owen as the newest partner at ATA. Owen helps lead the Paris, Tenn. office and has been with ATA for six and a half years. She is a certified public accountant, specializing in tax services. In her new role as a partner, she will be responsible for the 1040 practice for the Paris location and client accounting services.

 

“Elizabeth is a team player, works hard and has demonstrated the ability to maintain exceptional relationships with clients,” said John Whybrew, Managing Partner of ATA. “This promotion was well-deserved. We are excited to see Elizabeth continue to contribute to our firm as we move forward.”

Owen is a member of the ATA tax committee, the employee engagement committee and helps develop internal training programs. She handles all of the Paris office’s tax correspondence and is redesigning the client accounting services practice.

 

“As I began my career at ATA, I recognized the opportunities offered for career growth,” said Owen. “It has been my goal to be admitted as a partner for several years. I hope to play a part in advancing the firm in the coming years as a partner.”

 

Owen received her undergraduate degree in accounting, international business and political science from the University of Tennessee at Knoxville in 2013. She received her Master of Accountancy from Belmont University in 2014.

 

Owen has been married to her husband Kody since 2016. They recently welcomed their son, Abbott Shaw, to their family.

 

Owen is a graduate of Leadership Carroll County, a program that builds community awareness and produces stronger leaders in the county each year. She is also a 2017 graduate of the WestStar Leadership Program; her class developed WestTeach, a program that allows teachers to stay in the classroom but also learn to be leaders in their communities. Owen also serves on the Board of Directors for the Paris Rotary Club.

 

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and newly added ATAES a comprehensive human resource management agency.

 

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

 

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Helpful Articles

How To Get Stuff Done

Businesses face disruption on multiple fronts, and they are struggling to get things done. Company leaders must contend with the pandemic’s health threat and the challenges of managing a remote workforce, as well as supply chain disruptions, demand shifts, resource constraints and more, all while devising critical plans for the road ahead. Combined with uncertainty about how long the pandemic will continue to disrupt daily life and the economy, companies are having trouble prioritizing their needs and adapting to the constantly shifting environment.

Here are actionable steps organizations should consider for getting things done in the current business climate. Using these best practices will increase the likelihood of completing your strategic initiatives in 2021.

Determine Priorities

Figure out what you need to focus on and develop a plan for getting it done.

  • Identify priority projects for the next quarter.
  • Ensure projects align with the broader organization’s strategic plans.
  • Sort those projects into individual workstreams with dedicated teams.
  • Make actionable checklists for each project.
  • Create project benchmarks and define KPIs.
  • Establish a monthly/quarterly review cadence for the initiatives with the executive team. Review all major initiatives, progress to date and the current business environment. Reprioritize where appropriate.

Assign the Right People

Identify your dedicated team—with the appropriate combination of skillsets and personalities—to ensure the project gets the attention it needs to be accomplished successfully, on time and on budget.

  • Designate a specific person or team to be responsible for a project.
  • Identify a senior-level champion for the project/initiative to help ensure firm-wide buy-in.
  • Ensure the project team has productive group chemistry and the right combination of skillsets. At minimum, you’ll need a big-picture visionary, a strategist to turn that vision into an action plan and a tactical executor.
  • When building the team, look for high performers outside of your regular circles to spread the opportunity to more professionals and provide them the opportunity to expand their skillsets.
  • Be judicious about who is on the team. Keep only those who believe in the project and want it to succeed.
  • Be realistic about team members’ workloads. Try to offload less important work that project members may be doing so they can dedicate more time to their assignments on the project.

Build a Bird’s-Eye View

You’ll need a method of communicating all the projects happening throughout the business to company leadership and other parts of the organization. Getting a big-picture view also allows you to assess how your people’s time is being used, whether you are relying too heavily on a few professionals and if the organization is taking on more than it can handle.

  • Track all the various projects in your organization in a centralized location, using common metrics for monitoring success, with the help of dashboards to provide the big picture. Ensure all dashboards are easy to use and are fed by accurate, real-time data. Don’t rely solely on dashboards, however. Remain in regular communication with the project team who can provide more context to the data and share qualitative updates that aren’t as easily tracked.

Foster a “Fail Fast” Mindset

In the current environment, it is more important to act swiftly than to wait and strive for perfection. If you try to plan for every eventuality, you may be too slow to respond adequately to a crisis or seize a new opportunity.

  • Don’t wait for perfection—start executing. Encourage a “fail fast” organizational culture, and not just for times of crisis.
  • Assess the progress and value of all projects on ongoing basis—at least monthly and, if feasible, bi-weekly.
  • Are they moving the needle for your business?
  • Evaluate the progress of each project against predetermined KPIs and milestones. Is the project meeting those KPIs, and do they bring the expected ROI? ROI comes in many forms (e.g., revenue protection, revenue generation, increased profitability, cost avoidance, etc.), so define the ROI you’re aiming for to measure the project’s success and try to identify quick wins in the early stages.
  • Based on this evaluation of impact and ROI, determine whether projects need to be discontinued, reprioritized or require more investment and support.

Develop the Next Generation

Even in a crisis period, make sure you are still taking steps to train your people and provide them with new opportunities.

  • As you address immediate needs, don’t neglect your organization’s future. Provide avenues for junior staff to get exposure to opportunities that further their growth.
  • Include at least one junior person on every project team. Even if they are just involved in project management, expose them to strategic conversations that are beneficial for their development.
  • Teach them to be students—and, ultimately, champions—of the “fail fast” mindset you’re encouraging in the organization. The next generation of leaders will take up that mantle.

Whether you are trying to overcome financial challenges, capitalize on a new opportunity or adapt to shifting market conditions, how swiftly and effectively you act in the next few months could have significant implications for your business’ long-term success. Don’t wait, get started today.

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Helpful Articles Tax

Take Advantage of FSA Grace Period

FSA written on a wooden cubes.

Flexible Spending Account (FSA) rules just got more flexible.

FSAs allow employees to use tax-free dollars to pay qualified expenses, subject to limits. Due to the pandemic, the Consolidated Appropriations Act (CAA) temporarily loosens some limits for health FSAs and dependent care FSAs.

One such change is a longer grace period after the end of a plan year, when employees can apply unused funds for expenses incurred in the grace period. Under prior law, the grace period was 2 ½ months, before unused funds may be forfeited. The CAA gives employers the option to amend their FSA plans, extending the grace period to 12 months after the end of 2020 and 2021.

Visit this link for more details: https://bit.ly/3avwrSj

If you would like more information or guidance with your FSA, contact one of ATA’s locations today!