Your board, a major donor, a foundation or a state charity regulator wants audited or reviewed financial statements, and your finance team is already stretched. Our nonprofit audit services deliver the report they need, with a clear plan for restricted funds, functional expenses and the other areas that make nonprofit reporting different.
Nonprofit financial statements follow the not-for-profit reporting standards in US GAAP. They separate net assets with donor restrictions from those without, report expenses by both nature and function, and disclose liquidity and the availability of financial assets. Contributions, pledges, in-kind gifts and grants each have their own recognition rules.
An audit of a not-for-profit organization tests those areas alongside cash, investments, payroll and expenses. The auditor also looks at how restrictions are tracked and released, and how shared costs are allocated across programs, management and general, and fundraising.
Requirements usually come from several directions at once. Bylaws may require an annual audit. Foundations and government funders often require audited statements with an application or report. State charitable solicitation registration in Virginia, Maryland, the District of Columbia and other states can require reviewed or audited statements once revenue or contributions pass levels set by each state. Organizations that spend federal awards above the federal threshold need a Single Audit.
Form 990 asks whether the organization’s financial statements were audited or reviewed and whether a committee oversees the audit. Donors, grant makers and watchdog sites read the 990 alongside the audited statements, so the two should tell the same story. We coordinate timing so that the audit is finished before the 990 is finalized, and that differences between the two are explained.
We list the board, funder and state registration requirements that apply.
We agree on timing around your board calendar and send the document request.
Testing of revenue, restrictions, expenses and allocations.
Draft statements and findings discussed with management and the audit committee.
Final report delivered for your board, funders and state filings.
We write for finance directors and board members, not just accountants. Findings are explained in plain terms, with practical recommendations. We plan around your board meetings and filing deadlines, and we coordinate with grant reporting so funders see consistent numbers.
If the organization also needs help managing awards, our grant management services can help, within the limits of independence rules for audit clients.
It depends on who is asking. Start with your bylaws, then your grant agreements, then the charitable registration rules in each state where you solicit donations. Virginia, Maryland, DC and many other states can require reviewed or audited statements once revenue or contributions pass levels each state sets. If you spend $1,000,000 or more in federal awards in a year, you need a Single Audit. We can review your requirements with you before you commit.
An audit gives reasonable assurance and an opinion. A review gives limited assurance based mainly on analytics and inquiry, and usually costs less. Some foundations and states accept a review below certain revenue levels, while larger funders and government agencies often insist on an audit. Ask your funders directly, then choose the level that satisfies the strictest one, so you only pay once.
Donated goods, use of facilities and certain specialized services are recorded at fair value when they meet the recognition rules, and they need specific disclosures. General volunteer time usually does not qualify unless it involves specialized skills you would otherwise pay for. We review how you identify, value and document in-kind gifts, because funders and auditors look at this area closely.
Donors and watchdog sites use them to see how much goes to programs compared with management and fundraising. Not-for-profit standards require expenses to be reported by both nature and function, and shared costs such as rent or salaries need a reasonable allocation method. We test your allocations and, where they are hard to support, suggest simpler methods your team can apply consistently every year.
Preparing tax returns for an audit client is allowed only when independence safeguards are met, so we decide engagement by engagement. Either way, the audit and the 990 should tell the same story, since donors and grant makers read them side by side. We coordinate timing so the audit is final before the 990 is filed and any differences are explained.
Tell us your fiscal year end, total revenue, federal award spending and your board’s deadline. We will send a written proposal.
When a lender, funder, board or agency needs to rely on your numbers, we give them an independent answer they can trust. Financial statement audits and reviews, nonprofit audits, Single Audits, Yellow Book audits, agreed-upon procedures and 401(k) plan audits, each scoped to the requirement in front of you.
Read moreSpent $1,000,000 or more in federal awards this year? We plan your Single Audit around your major programs and the nine-month filing deadline, so the reporting package lands on time.
Read moreWinning the award is only the start. We help you budget it, charge only allowable costs, draw funds on time, report accurately and keep subrecipients on track, so every dollar holds up when the auditors arrive.
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