The growth of a not-for-profit organization requires a commitment to fulfilling certain obligations. One of those obligations is conducting a regular not-for-profit audit. There are different audit requirements based on annual revenue, state, and methods of incorporation.
Constitution Requirements
Sometimes, the Not-for-profit bylaws might require you to conduct annual or regular financial statement audits for the grantors and stakeholders.
State requirements
Not-for-profit receiving above $500,000 in a fiscal year must conduct a financial statement audit. However, the revenue cap varies for different states. So, you must confirm state requirements or consult a CPA firm for guidance.
Federal requirements
Not-for-profit organizations that receive funding that exceeds $750,000 from the federal government as contracts or direct donations must conduct a regular financial statement audit.
Read more here.
Grant application requirements
Some grantors require a financial statement audit report to assess the organization’s credibility. The outcome of the audit will determine if they will commit or not.
Note: An independent CPA must conduct the financial statement audit for transparency and compliance with accounting standards. Contact MetwallyCPA to audit your non-profit organization.
Mohamed founded Metwally CPA PLLC in 2020 in the Dallas-Fort Worth metropolitan area. He holds active CPA license in the state of Texas and California. Mohamed is the firm’s Executive Director. Mohamed has a Master of Science (M.S.) degree in Accounting from University of Dallas. He has extensive assurance experience in a wide variety of industries, and he also devotes considerable time consulting and working with organizations and CPA firms on internal controls, audit quality, automation, and accounting best practices. He has over 15 years of audit experience.
Prior to founding the firm, Mohamed worked for big 4 and national firms for over than 10 years in the assurance practice. Mohamed worked on private clients as well as public clients and specialized in financial services sector.
He is a member of the Texas CPA Practice Issues, Diversity and Inclusion, and Governmental Accounting and Single Audits Conference Committees of Texas Society of CPAs.
Mohamed is a member of the American Institute of Certified Public Accountants, member of the AICPA small business group, member of the American institute of Certified Management Accountants, and Texas Society of Certified Public Accountants.
