Nonprofit Audits in a Nutshell

Last week, the National Council of Nonprofits hosted a “Nonprofit Audits in a Nutshell” webinar with experts from BoardSource, eCratchit, First Nonprofit Consulting Company and Raffa.

The webinar is recorded and available online.  Some of the topics covered include:

  • Why you might need an audit
  • Picking an auditor
  • Preparing for an audit (avoiding mistakes)
  • What happens after an audit
  • The role of your board and/or audit committee
  • Maintaining engagement with audit firm (ensuring independence and preparing for future work)

Raffa Partner Kimberly Pannell addressed the audit requirements of government funding, since many nonprofits receive government grants and support (her section of the webinar begins roughly 30 minutes in). Nearly 40 percent of the more than 350 audits Raffa performs each year are for clients receiving some sort of government funds.

She discussed the requirements of a “single audit,” OMB Circular A-133 and some specifics that nonprofits need to know when preparing for an audit that includes government funds. Kimberly addressed the types of audit reports issued:

  • Basic financial statements
  • Schedule of expenditures of federal awards
  • Compliance with laws and regulations and internal controls
    • Government auditing standards
    • Office of Management and Budget (OMB) Circular A-133
  • Schedule of findings and questioned costs

She also discussed what the auditors are looking for when conducting the audit, including:

  • Whether or not you are considered a low-risk auditee
  • Risk assessment
  • Review of compliance and controls

Kimberly detailed what is covered under some of the OMB Circulars, including the A-122, A-110 and A-133. And, she covered compliance requirements and some of the proposed changes that may lie ahead for organizations receiving government funds.

Finally, Kimberly provided some helpful links for nonprofits:

The webinar runs just over an hour and is packed with tips and resources. You can find the recording here:

The National Council of Nonprofits just released their Nonprofit Audit Guide. You can download that from their website.

Finally, to learn more about Raffa’s Audit services, visit the Services section of our website.

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