Non-Profit Audit Requirements

Do you manage or serve on the board of a non-profit? Are you receiving federal funding either directly or passed-through a state agency? Do you have a 401(k) or 403(b) employee benefits plan? If so, you may be required to undergo an annual audit.

Massachusetts, Connecticut, New Hampshire and many other states have audit requirements for public charities. For instance, the Massachusetts Attorney General’s Office requires any non-profit organization that receives between $200,000 and $500,000 in gross support and revenue to file financial statements reviewed by an independent CPA along with their Form PC Annual Report. Organizations that receive in excess of $500,000 in gross revenue and support are required to file audited financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP).

In addition, under OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, organizations who expend $500,000 or more in federal funding, whether received directly or passed-through a state agency, are required to undergo a . Organizations that expend less than $500,000 in federal funding may still be required to undergo an audit in accordance with Government Auditing Standards, or what is known as a Yellow Book Audit.

Employee Benefit Plans (401(k) and 403(b)) are also subject to audit requirements. Generally, only plans with fewer than 100 participants are exempt. Let one of our experienced professionals help you determine whether or not your organization’s plan is subject to these requirements.

Anstiss & Co., P.C. has one of the largest not-for-profit practices in Massachusetts. Our practice is dedicated to servicing non-profit organizations, assisting with audits, reviews, tax compliance (IRS Form 990 and state filings), and UFR filings in Massachusetts at competitive rates. If you are not completely satisfied with your current auditor/accountant, or you are looking to cut costs without sacrificing any of the accounting services you presently receive, we invite you to call us today at (978) 452-2500 to speak with one of our non-profit specialists Brendan Toolin, Jayne Andrews, or Mary Linskey.

 

Anstiss & Co. is a Lowell- based public accounting firm founded by Ray Anstiss, Sr. in 1964, and is currently listed as a Top-50 Accounting Firm in Massachusetts by the Boston Business Journal, and serves clients throughout the United States.

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