Category: Non-Profit

Recently, the AICPA Auditing Standards Board issued a suite of standards that effect the Auditor’s Report. It places the auditor’s opinion at the front of the audit report and strengthens the transparency of the auditor’s opinion, clarifies responsibilities, and otherwise strengthens the audit process.

The new Encompass Rating System allows Charity Navigator to rate organizations at scale, automatically analyzing tax forms for three consecutive years. At the time of the rollout, Charity Navigator had increased the total number of rated nonprofits from 9,000 to 160,000. It also expands eligibility to smaller and less established nonprofits that didn’t meet the requirements previously.

In the case of Americans For Prosperity Foundation v. Bonta, the Supreme Court ruled that California cannot demand a copy of Form 990 Schedule B, which includes the names and addresses of donors, from charitable organizations.

Earlier this year, the Office of Management and Budget (OMB) released Memorandum 21-20, directing federal agencies to provide a blanket six-month extension for single audit reporting to the Federal Audit Clearinghouse. The extension applies to all recipients and sub-recipients that have fiscal year ends through June 30, 2021, by extending the reporting package deadline six months beyond the normal due date.