Independent examination
We examine financial information so boards, donors, grantors, and other stakeholders can understand the organization's financial position.
Nonprofit organizations have unique financial reporting, governance, and compliance responsibilities. As your organization grows, maintaining accurate financial statements and strong internal controls becomes increasingly important. Our nonprofit audit professionals provide independent financial statement audits, nonprofit accounting support, financial reporting, internal control review, and audit preparation services designed for charitable organizations, foundations, associations, and other tax-exempt entities.
Independent Audit. Clear Financial Reporting. Greater Confidence.
A nonprofit audit is more than a review of financial statements. It provides an independent examination of an organization's financial information and can help boards, management, donors, grantors, and other stakeholders understand the organization's financial position. Our approach combines nonprofit accounting knowledge with a structured audit process designed around your organization's financial reporting needs.
We examine financial information so boards, donors, grantors, and other stakeholders can understand the organization's financial position.
The process is designed around nonprofit accounting, governance, and the financial reporting your organization actually needs.
Independent audits, accounting review, controls, grants, and reporting support:
Nonprofit audit requirements can depend on several factors, including the state in which an organization operates, the amount and type of revenue or contributions it receives, government funding, grant requirements, and applicable contracts or regulations. Many states regulate charitable organizations that solicit contributions and may require financial reports or audited financial statements under specific circumstances. Requirements vary considerably from state to state. (IRS)
State charitable registration authorities
Federal or state funding agencies
Government contracts
Grant agreements
Private foundations
Institutional funders
Lenders
Boards or governance policies
The National Council of Nonprofits' 50-state guide identifies different audit thresholds and requirements across states. Some states require audits at specific revenue or contribution levels, while others have no general state-law audit requirement. (National Council of Nonprofits)
An independent audit provides an objective examination of an organization's financial statements. Our nonprofit audit process focuses on understanding the organization's financial activities, accounting practices, internal controls, and supporting documentation. We work to provide nonprofit leadership with a clear understanding of the audit process and the financial information being examined.
We plan the engagement around the organization's activities, funding sources, and financial reporting needs.
We assess areas of financial reporting risk based on the organization's accounting practices and operations.
We perform testing of relevant accounts, transactions, and supporting documentation.
We review the financial statements and related information presented by the organization.
We complete the audit procedures applicable to the engagement and the organization's circumstances.
We report the results of the independent examination so leadership can understand the financial information examined.
Our audit services can cover financial statements and related accounting information. Our team works with nonprofit management to obtain the information needed to perform the applicable audit procedures.
Review of assets, liabilities, and net assets reported by the organization.
Analysis of revenue, expenses, changes in net assets, and other relevant financial activity.
Review of program services, management and general expenses, and fundraising expenses where applicable.
Analysis of cash receipts, payments, and changes in the organization's cash position.
Review of disclosures supporting the organization's financial statements.
Strong internal controls can help nonprofit organizations protect assets, improve financial reporting, and reduce the risk of errors. Nonprofits frequently manage multiple funding sources, including grants, restricted contributions, government funding, and donor-designated resources. Preparing for an audit does not need to become a last-minute exercise.
Federal funding can create requirements beyond a standard financial statement audit. For example, federal requirements may apply when a nonprofit expends $750,000 or more in federal awards during a fiscal year. The applicable requirements should be evaluated based on the organization's federal awards and circumstances. (National Council of Nonprofits)
The objective is to help management identify control processes that may need additional attention or improvement. We can review areas such as cash management, bank reconciliations, accounts payable, payroll, revenue recognition, donation processing, grant accounting, expense approvals, segregation of duties, financial reporting procedures, access controls, and documentation practices.
Maintaining clear records for these funding sources can be important for financial reporting and accountability. We help organizations improve the organization and visibility of financial information associated with different funding sources.
A structured audit-preparation process can help management organize financial records and supporting documentation before the audit begins. We help organize information commonly requested by auditors during the audit process.
Nonprofits receiving government funding may have additional audit and reporting responsibilities. Our team can assist organizations with federal funding documentation, grant accounting review, financial data organization, internal control documentation, supporting schedules, audit preparation, and grant-related financial reporting.
Nonprofit organizations can face reporting requirements at both the federal and state levels. The IRS notes that many states require charitable organizations that solicit contributions to register and file periodic financial reports. State requirements can differ based on where an organization operates and the nature of its activities. (IRS) We help organizations maintain organized financial information for their applicable reporting processes.
Not every nonprofit necessarily needs the same level of financial reporting service. The appropriate service depends on the organization's circumstances, applicable requirements, stakeholder expectations, and state or funding requirements.
An audit provides the highest level of assurance among the three traditional financial statement services and involves extensive independent procedures.
A review provides limited assurance through analytical procedures and inquiries.
A compilation involves presenting financial information based on information provided by management without providing assurance.
The appropriate service depends on the organization's circumstances, applicable requirements, stakeholder expectations, and state or funding requirements.
Our nonprofit audit firm supports organizations including the types below. Services can be tailored to the organization's size, financial structure, funding sources, and reporting requirements.
Nonprofit organizations have accounting and reporting considerations that differ from many for-profit businesses.
Nonprofit organizations have accounting and reporting considerations that differ from many for-profit businesses. Our team focuses on the financial reporting needs of nonprofit organizations.
Our audit approach follows a structured process designed to examine relevant financial information and supporting documentation.
We help organizations understand their financial statements and identify areas that may require additional attention.
Our review can help management identify opportunities to improve financial processes and internal controls.
We understand the importance of tracking restricted funds, grants, donations, and program-related financial activity.
We help management organize financial records and supporting documentation before the audit begins.
Your nonprofit's financial reporting needs depend on its funding sources, size, activities, location, and applicable requirements. Whether you need an annual nonprofit financial statement audit, audit preparation support, grant accounting review, internal control assessment, or financial reporting assistance, our team provides structured support throughout the process.
A nonprofit audit is an independent examination of an organization's financial statements and related financial information. The audit provides assurance regarding whether the financial statements are presented in accordance with the applicable financial reporting framework.
No. There is no single nationwide rule requiring every nonprofit to have an annual independent audit. Requirements can depend on state law, revenue or contribution levels, government funding, grants, contracts, and other circumstances. State requirements vary significantly. (National Council of Nonprofits)
A nonprofit may need an audit because of state charitable solicitation requirements, government funding, grant conditions, contracts, lender requirements, or internal governance policies. The specific requirement should be evaluated based on the organization's circumstances.
There is no single nationwide revenue threshold. Different states use different thresholds and may measure revenue, contributions, or other financial factors. Some states have no general statutory audit requirement. (National Council of Nonprofits)
An audit provides a higher level of assurance and involves more extensive procedures. A review provides limited assurance and generally involves inquiries and analytical procedures.
Depending on the organization and audit scope, documents may include financial statements, general ledger information, bank statements, reconciliations, grant agreements, donation records, payroll information, fixed-asset schedules, investment records, invoices, and supporting documentation.
Yes. Audit preparation can include financial record organization, account reconciliation, supporting-document preparation, grant and fund accounting review, internal control documentation, and preparation of information requested by the auditor.
Some grantors and funding organizations may require audited financial statements, while others may accept different levels of financial reporting. Requirements depend on the grant agreement and funding source.
Potentially. Government funding can create additional reporting or audit requirements. Federal award requirements, for example, can apply when an organization meets the applicable federal expenditure threshold. (National Council of Nonprofits)
Yes. Nonprofit organizations may also need accounting, financial reporting, reconciliation, grant accounting, internal control, and audit-preparation support.
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