The word “audit” covers a lot of ground. Upon hearing it, most people immediately think of an IRS review of tax returns, a Single Audit under Uniform Guidance or another of the various legally mandated audit types. Those are big deals, to be sure, but it is the often-overlooked and purely voluntary internal audit that frequently brings the most value to an organization. An internal review of processes and procedures can identify significant issues and provide insight that helps organizations of every size mitigate risks, strengthen internal controls and improve operations.Read More »
Single audits under the Office of Management and Budget’s Uniform Guidance are a routine responsibility for nonprofit organizations. When the single audit produces findings that must be addressed, they typically fall into one of four categories: allowable costs; procurement, suspension and debarment; reporting; and sub-recipient monitoring.Read More »
Congratulations, you have been selected for an audit! Those words are as likely as any to cause terror in the unlucky individual who reads them. The IRS may not phrase an invitation to participate in an audit exactly that way, but the gist is unmistakable: You are about to undergo an official examination of your tax return for at least one filing year. What should you do?Read More »
“Where is that important document? I’m pretty sure we kept it…” If this sounds all too familiar, you’re not alone. Most organizations struggle with the burden of maintaining all the critical documents they will need to file taxes or complete an audit. And, of course, wondering whether or not you should hold on to a particular record only adds to the difficulty. The new year has just begun, so now is a perfect time to finally get those files in order. This time, though, you’ll have the advantage of knowing exactly what you need to keep.Read More »
Many nonprofit organizations that receive grants from the federal government require a single audit for assurance that the organization is in compliance with the Uniform Guidance requirements. Quite often these audits result in one or more findings that the organization must address. Of the 12 compliance requirements, there are four under which most audit findings fall. These frequent trouble spots are allowable costs; procurement, suspension and debarment; reporting, and sub-recipient monitoring. This article is the first in a 4-part series that will focus on these common findings; here we will address allowable costs.
“Do you have the necessary policies?”
This question is no longer just an innocent inquiry, but a requirement. As audits become more analytical in today’s digital age, focus continues to shift to companies’ internal controls and the underlying policies influencing them. Among these is the often overlooked document retention policy.
Do you work for a nonfederal entity? Does your organization receive federal grants and awards? Does your organization expend $750,000 or more in these awards in one fiscal year? If you answered yes to all of these questions, then your organization is subject to a single audit in accordance with the Office of Management and Budget (OMB) Circular A-133.
For business owners, occupational fraud can be one of the most dangerous threats to a company’s success. According to the Association of Certified Fraud Examiners, the median loss in a business fraud case is about $130,000, and this number is even higher for small businesses. However, don’t let the statistics scare you. Using the following preventive and detective internal controls, any business owner can take action to keep fraud at bay.
With the fiscal year end around the corner, what comes next? The annual audit, of course! With the stress of year-end closing weighing on your mind, the last thing you may want to think about is the challenge of going through an audit. This process tends to make everyone uneasy and can undoubtedly lead to extra work, but it doesn’t need to be an experience to dread.
Most business owners have heard of benefit plan audits, but many are unsure what these audits entail or even whether their company is required to have one. While the regulations surrounding benefit plans and related audits are complex, it is a relatively straightforward matter to determine your responsibilities under the law. Here’s what you need to know, in a nutshell.