Not all nonprofit organizations are required to have an independent audit of their financial statements. However, there are several circumstances that trigger a mandatory audit, including expending $750,000 or more per year in federal funds. Many state and federal contracts, bank loans, and private foundations may also require audited financials.
As important as they are, audits can be time-consuming, costly, and frustrating for nonprofit organizations, their boards, and staff. To ensure that the process goes smoothly, here are five ways to prepare: (more…)