As we began to discuss on Tuesday (Read Part 1 of this series), once you have identified that you are required to, or that you would voluntarily like to conduct an audit, you will want to understand the following key questions and critical next steps: Do I need an audit or will a financial review suffice? When should I conduct my audit? What are the most critical criteria in selecting an audit firm?
As many nonprofits have wrapped up their fiscal year end process, a natural next step is preparing for your annual 990 IRS filing and (if required) your annual audit. We will save the 990 IRS filing for another day and another entry, but for now let’s tackle some of the basics as it relates to nonprofit audits. Umm… so what exactly is the purpose of an audit? An audit as defined by The Alliance for Nonprofit Management is a process for testing the accuracy and completeness of information presented in an organization's financial statements.
Check out this 30 minute video from Mary Leaton, CPA, Director of Accounting Services. She quickly outlines the basic tenants to tracking and managing your grants. Mary leverages her 20+ years of nonprofit accounting experience, along with her current responsibility for over $100M in grants, to deliver quick succinct best practices. Let us know what you think!