Occasionally I run across a resource that is exceptional that I want to pass on to our clients, prospects, and the nonprofit community in general. Board Source has provided a link to an Audit Guide developed by the National Council of Nonprofits and the First Nonprofit Foundation that covers most of what a nonprofit executive or Board member needs to know about an independent audit, as well as guidelines on selecting an auditor and managing the process. The audit guide is free and accessible on-online. Please read the summary of the table of contents below and drill down to the topics.
Table of Contents
- What is an independent audit? This section will help you understand what an independent audit is, and what it is not, as well as what alternatives to independent audits exist.
- Additional Resources
- Does your nonprofit need to have an independent audit? Not every charitable nonprofit is required to conduct an independent audit. Some nonprofits, because of the size of their annual budgets, or because of the sources of their funding, are required by state or federal law to conduct an independent audit. In other situations, a charitable nonprofit has a choice whether or not to conduct an independent audit. More…
- State law nonprofit audit requirements: Learn about the audit requirements for charitable nonprofits in your state. This 50-state chart shows which states’ laws require a charitable nonprofit to conduct an independent audit.
- Federal law audit requirements: If your nonprofit receives federal funding, whether directly or through a pass-through entity, it may be required to conduct an independent audit. Learn about the requirements of the Single Audit Act.
- Why a nonprofit might conduct an audit even when the law doesn’t require it.
- Board’s role and audit committees
- Managing an independent audit: a step-by-step approach. This section of the Guide will help you understand what happens before, during, and after the audit, and the roles that staff and board members play in the independent audit process.