What is the appropriate time in the life cycle of a nonprofit for the first independent audit? We are a small nonprofit, and the expense is considerable.
Generally, you need to reach a certain point in the size of your annual budget, or want to apply for a grant that requries the nonprofit undergo an annual audit. A million dollar budget might be a good milestone. Many firms that conduct audits have a nonprofit practice. Some have a nonprofit rate, too. I would suggest that you ask some of the larger nonprofits in your area for a recommendation.
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A point of clarification: most non-profits are not million dollar enterprizes. Small agencies with budgets of under $50,000 annually are usually required to submit an annual audit for any city, state, county or federal grants. After 35 years working with nonprofits I have yet to see an agency that did not do an annual audit.
Thanks for the opportuntity to share my perspective.
»» Posted by: Teddi Samuel on June 12, 2007 08:34 PM