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Audit Resources

Every nonprofit deserves well-educated accounting and finance staff.  

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When is an Audit Required

Nonprofits are often held to higher standards than for-profit companies, which typically do not need to disclose their financial performance, tax returns, or financial statements publicly.  Why is this and is an audit required for your nonprofit?

US Federal Single Audit Requirement (member only)

If your nonprofit organization receives money from the U.S. federal government, you may be required to have an independent audit conducted that abides by the "Single Audit" requirement.

10 Simple Steps to Prepare for an Audit (member only)

Audits can be a stressful time for any nonprofit.  Finance staff should keep in mind these ten simple steps that will undoubtedly facilitate the audit process.

Guide to Understanding Nonprofit Financial Statements

Everyone working in nonprofit accounting and finance, including Board members, should have a strong grasp of reading and understanding nonprofit financial statements. ANAFP's Guide to Understanding Nonprofit Financial Statements will walk you through each financial statement so that you will understand how to interpret the information presented.

Common Internal Controls for Nonprofits

Establishing sound internal controls is important for every nonprofit. These controls help ensure funds are not misappropriated and help keep fraud from occurring. However, establishing internal controls can sometimes prove difficult. Nevertheless, these are some of the common internal controls that should exist in nonprofits, regardless of size, because these controls are often reviewed by auditors as part of the annual financial audit.

Structure of U.S. IRS Form 990

The U.S. IRS Form 990 contains many parts and schedules. This chart, which showcases the contents of each part and each schedule that make up Form 990, will help organizations decipher which section is applicable to them.

How to Account for Uncertain Tax Positions (member only) 

Nonprofits are required to account for uncertain, material tax positions in the accounting system and include such information in their financial statements. Determining if a nonprofit has any such positions requires a careful inventory of all tax positions and then deciding if any of these are uncertain. This article will provide an overview for conducting this analysis and explore common areas of uncertain tax positions.

Preparing for Virtual Audits - Technology Improvements for Every Nonprofit

Technology is consistently changing the way business is conducted, and this even applies to how some financial audits are currently and will be conducted in years to come. Learn seven steps for making your organization more technology-driven so you'll not only be prepared for virtual audits, but you'll also improve your organization's systems and processes.

Can Nonprofits Engage in Lobbying Activities (member only)

Often times, nonprofits, in the course of their normal activities, find themselves engaging in public policy debate and, more importantly, lobbying efforts. In the United States, federal law allows nonprofits to lobby within certain limits. Knowing what constitutes lobbying under the law, and what the limits are, is key for every nonprofit to lobby both legally and safely. 

Internal Control: What is the COSO Internal Control Framework

The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) established a model for evaluating internal controls for organizations. This model was adopted as the generally accepted framework for internal control, and it is widely recognized as the definitive standard against which organizations measure the effectiveness of their internal control systems. 

Reasonable and Allocable Costs on US Government Agreements (member only)

Many nonprofits receive funds from the US government.  Often times, recipients of these government funds will be told that only “allowable” costs can be charged to their US government awards.  According to FAR Part 31.201-2, a cost is allowable only when it is reasonable, allocable, follows generally accepted accounting principles, and is compliant with the agreement (award) terms.

Guide to Setting-up QuickBooks Online for Nonprofits  (member only)

Be sure to properly set-up your nonprofit's QuickBooks Online account by downloading and reading ANAFP's Guide to Setting-up QuickBooks Online for Nonprofits.  This guide will walk you through, step-by-step, the setting changes and edits you will need to make to QuickBooks Online so that you can accurately track revenues and expenses by donors, grants, projects, and service areas.

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