Week 1 – September 6th, 2022 Theme: Alternatives to Annual Audit
Many Parent Centers have fiscal years that match OSEP’s fiscal year. That means you might be just about ready to close your books for 2021-22. Not every center needs a Single Audit, but most could benefit from some form of external look at the books. Externally reviewed financials help when applying for other grants, and working to be taken seriously by corporate donors. Learn the differences between an Audit, a Review, and a Compilation here: https://www.501c.com/does-your-nonprofit-really-need-an-annual-audit-here-are-the-alternatives/
Week 2 – September 13th, 2022 Theme: Auditor Selection Process
If your center expends more than $750,000 in federal funds, you’re required to submit to a Single Audit. Even if you don’t expend that much, using a Uniform Guidance approved process to select a firm that can perform a Review or a Compilation will help you prepare for future growth. The Auditor Selection standards can be found in Section 2 of the Federal Code, Part 200.509 (2 CFR, Part 200.509). Here is a quick link to the same language from Cornell Law: https://www.law.cornell.edu/cfr/text/2/200.509
Week 4 – September 27th, 2022 Theme: How Far Back Can the IRS Audit?
Making sure your center’s books are clean and your 990 is correct is essential if a funder or the IRS requests information. The IRS can audit any center any time. Those audits can take different forms. Here is a resource that outlines what to expect from the different types of IRS audits: https://stewardingram.com/how-far-back-can-the-irs-audit/