Recently, many nonprofit organizations have received federal financial assistance as a result of the COVID-19 pandemic. This could make them subject to a Single Audit for the first time. The OMB Compliance Supplement provides guidance for those who want to understand the rules their auditing team must follow. Read more about the 2022 Compliance Supplement in this post.
For nonprofit organizations, a board of directors is responsible for ensuring the organization upholds its mission, safeguards its assets, and operates in the public interest. While there are many legal, practical, and ethical reasons for a nonprofit to have a board of directors, the common theme is that it sets the foundation for good governance.
Nonprofit organizations should prepare to provide additional information on the contributions of nonfinancial assets under ASU 2020-07. This accounting standard was issued by the FASB in September 2020 with the intent to increase transparency and reduce diversity in practice in the presentation and disclosures about types of nonfinancial assets received, how they are measured, and how they are used by the organization.
Spending the time to prepare in advance for your nonprofit audit will save time and money. In this post, we discuss ways you can prepare and how it will create a smoother audit process, reduce the time burden placed on staff, and help your organization reap the benefits of an independent, financial audit.