At a Glance
Client: The People’s Music School
Industry: Not-for-profit offering high quality, tuition-free music education to school aged children, such as general music, instrumental, music theory and ensembles.
Location: Chicago, IL
CFO: Kasia Johnson
Services: Annual audit and year-round financial reporting guidance
ROI: Helped the new CFO streamline annual audit preparation through technology and standards guidance. KRD also advises on general reporting and filing questions throughout the year to simplify the audit experience.
For Kasia Johnson, being the CFO at a music school offers the best of both worlds for her career so far. She is a former professional violist in the Chicago area. Most recently, she had a successful career as the chief operating officer for a mid-sized Chicago law firm.
She joined The People’s Music School two years ago. As their CFO, she also supports human resources and administrative needs. She met KRD’s audit team when her predecessor gave us a full endorsement.
“They said, ‘You have to keep working with Jean [Signorelli]. She is the most amazing person,’ Kasia explained. “The team at KRD were similarly complimentary of my predecessor, so it was easy to walk into that relationship with them.”
Kasia started working with Jean who is Director of Audit & Assurance at KRD, as well as Nan Liu, Audit Supervisor. “Nan was new on the account, and I was new, so we were both working through the audit process together,” Kasia said. “That was my first not-for-profit audit, and she was very knowledgeable and responsive to all my questions.”
Once Kasia got through the first audit and understood the process with Nan’s guidance, the second audit required much less information and effort. Even so, a game-changer happened for the second-year audit when KRD implemented a new client dashboard and workflow system. The new system helps Kasia see all of her work in progress when preparing for the audit. She can stay on top of document requests and deadlines in the midst of her other duties.
“Our fiscal year-end is August 31. In September and October, I start pulling things together. The second audit was super smooth because it showed me the status of things…if they accepted documents at KRD and why or why not. I could respond on my own time and see my rate of completion.”
Ongoing Finance Guidance
As a busy CFO at a growing not-for-profit, Kasia appreciates technology combined with KRD’s quick response, she said.
For example, Kasia talks to Nan or Jean throughout the year, asking about journal entries, reporting standards and other guidance.
“If I want to buy instruments that I won’t submit to use until the next year, I can ask KRD about journal entries for prepaid expenses,” she said. “It makes the audit go smoother when things are recorded properly the first time.”
She also consults KRD about accounting standards for restricted and unrestricted gifts, particularly the reporting and proper use of multi-year gifts.
When Kasia receives notices from federal or state tax authorities, she can turn to KRD for response and documentation. This way, she ensures that the organization is compliant and up to date on their filings.
“They handle our 990 filings and help me respond to the special filing for the State of Illinois. They are super responsive and knowledgeable for these requirements,” she said.
Invested in the Mission
“A good relationship with your accounting and advisory firm matters, and I have that with KRD,” Kasia says. “Jean and Nan are very much a team, and that’s great for me.”
After working closely together for two years by video conference calls and email, Kasia and Nan met in person at the music school’s annual charitable gala. Kasia said it meant a lot that KRD sponsored a table at the gala and came in person to support the school’s mission. Donors help to expand music programming for kids who otherwise could not afford it.
“They see and support what we do, and I appreciate what they do. It’s all about the relationship.”
