MYCPE ONE
Nonprofit Audit

Simple, Transparent Pricing for Nonprofit Audits

Audit support built for CPA firms serving nonprofits priced by your client's annual expenses, with no hidden add-ons.

From small nonprofits under $500K to larger organizations with federal grants,
we handle the audit work so your firm can serve more mission-driven clients with confidence.

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Total Annual Expenses
<$500K
Base Audit Fee
$3,499
Flat fee · U.S. GAAS + ASC 958 Not-for-Profit
Contact us for a custom quote tailored to your organization.
All features included
No hidden add-ons
What's Included <$500K
Audit Planning & NP-Specific Risk Assessment
Engagement Acceptance & Independence Confirmation iFormal engagement letter referencing GAAS and ASC 958; independence confirmation per AICPA ethics; predecessor nonprofit auditor communication (AU-C 210) if applicable; review of prior Form 990 and prior-year audit report
Audit Planning Memorandum - Nonprofit Specific iDocumented audit strategy covering ASC 958 NP GAAP scope, materiality threshold, donor restriction risk areas, grant compliance assessment, functional expense allocation methodology review, and timeline tied to Form 990 and Single Audit deadlines
Kickoff Strategy Call with Executive Director / CFO iLive alignment call to confirm scope, review PBC list, understand grant portfolio, identify donor restriction classifications, and set timeline relative to Form 990 and any federal award filing deadlines
Risk Assessment - NP-Specific Inherent Risks iEvaluating fraud risk in cash receipts and disbursements; donor restriction misclassification risk; grant compliance risk; revenue recognition risk (conditional vs unconditional contributions per ASC 958-605); functional expense allocation accuracy
Materiality Calculation - NP Basis iComputing overall materiality using NP-standard bases: total expenses, total revenue, or net assets - whichever is most appropriate; documenting performance materiality and clearly trivial threshold per AICPA standards
Fraud Risk Assessment (AU-C 240) iBrainstorming sessions, management inquiries, and analytical procedures specifically focused on fraud risk in NP-specific cycles: contribution receipts, grant disbursements, and related party transactions involving board members
Understanding the Entity - NP Mission, Programs & Governance iDocumenting mission, program services, funding sources, governance structure, board composition, and key accounting policies per AU-C 315; reviewing bylaws, board minutes, and conflict of interest policies
Internal Control Walkthrough - NP-Specific Cycles iTracing transactions through nonprofit cycles: contribution receipts, grant disbursements, payroll, vendor payments, and endowment management; documenting key controls and evaluating segregation of duties
Substantive Testing
Cash & Bank Confirmation - All Accounts iDirect bank confirmations for all accounts including restricted fund accounts, endowment custodial accounts, and operating accounts; reconciliation to general ledger; restricted cash disclosure testing per ASC 230
Contribution Revenue Testing - ASC 958-605 iTesting that contributions (cash, pledges, bequests, in-kind) are recorded in the correct period, correctly classified as with/without donor restrictions, and recognized per ASC 958-605 contribution vs exchange transaction rules
Grant Revenue & Expenditure Testing iTesting grant agreements for compliance with terms; verifying grant revenue is recognized when conditions are met (conditional grants) vs when received (unconditional); testing allowable expenditures per grant terms and cost principles
Donor Restriction Testing - ASC 958-205 iTesting that net assets with donor restrictions (time-restricted, purpose-restricted, perpetually restricted) are correctly classified, properly segregated, and released only when restriction conditions are satisfied per ASC 958-205
Endowment Fund Testing - UPMIFA Compliance iTesting endowment funds against State UPMIFA requirements; verifying spending policy compliance; confirming permanently restricted principal is intact and not invaded
In-Kind Contribution Testing & Valuation iTesting that donated goods and services are recognized at fair value at date of donation per ASC 958-605-25; verifying valuation methods; identifying and testing professional services donated by board members or volunteers
Functional Expense Allocation Testing - ASC 958-720 iTesting the allocation methodology used to assign expenses among program services, management & general, and fundraising; verifying time studies, square footage allocations, or direct allocation methods are consistently and correctly applied
Program Service Revenue Testing iTesting earned revenue (membership dues, program fees, conference registrations, publications, tuition) for proper recognition as exchange transactions vs contributions; verifying amounts are correctly classified by net asset class
Accounts Payable & Accrued Liabilities Testing iSearch for unrecorded liabilities; cut-off testing for grant expenses and vendor invoices; testing that year-end accruals are properly recorded including grant reimbursement receivables and deferred revenue
Payroll & Compensation Testing iTesting payroll expense against personnel records; verifying executive compensation is board-approved and properly disclosed per Form 990 Part VII requirements; testing vacation and PTO accruals; verifying volunteer services accounting
Fixed Asset & Depreciation Testing iTesting additions, disposals, and depreciation expense; confirming donated fixed assets are recorded at fair value at donation date; testing capitalization policy; verifying collections and works of art are accounted for per NP GAAP
Investment Portfolio Testing - ASC 820 iFair value testing of investment portfolio per ASC 820 Level 1/2/3 hierarchy; testing investment income allocation to restricted vs unrestricted funds per donor agreements; reviewing investment policy compliance and underwater endowment funds
Liquidity & Availability Disclosure Testing - ASC 958-210 iTesting that quantitative and qualitative liquidity disclosures are complete and accurate per ASC 958-210-50; verifying that amounts available for general expenditure within one year are correctly calculated, disclosed, and reconciled
Related Party Transactions - Board Members & Officers iIdentifying and reviewing all related party transactions per AU-C 550; testing board member compensation, loans, service agreements, and vendor relationships for proper authorization, approval, and disclosure in financial statements and Form 990
Accounts Receivable & Pledges Receivable Testing iTesting promises to give (pledges receivable) per ASC 958-310; evaluating the allowance for uncollectible pledges; testing multi-year pledge discounting; confirming grant receivables are properly recorded and collectible
Going Concern Evaluation iEvaluating the nonprofit's ability to continue operations for 12 months beyond the financial statement date; reviewing budget vs actual, cash reserves, grant pipeline, board-designated operating reserves, and any significant financial risks
Financial Statement Preparation & Disclosure Review
Statement of Financial Position (NP Balance Sheet) iReview of assets, liabilities, and net assets classified per ASC 958 - net assets with and without donor restrictions presented separately; mathematical accuracy, GAAP compliance, and comparative year presentation
Statement of Activities (NP Income Statement) iReview of revenues, expenses, gains, and losses presented by net asset class (with vs without donor restrictions); change in net assets reconciliation; functional expense subtotals; prior year comparative presentation
Statement of Functional Expenses iReview of expenses presented by both function (program, management & general, fundraising) and natural classification (salaries, rent, utilities, etc.) per ASC 958-720; allocation methodology disclosure review
Statement of Cash Flows iTesting of operating, investing, and financing activities; reconciliation of beginning and ending cash including restricted cash per ASC 230; direct or indirect method applied consistently; comparative year presentation
Notes to Financial Statements - ASC 958 NP Disclosure Checklist iComplete review of all NP-required footnote disclosures: accounting policies, donor restriction descriptions, endowment policy and UPMIFA compliance, liquidity per ASC 958-210, functional expense methodology, program descriptions, and related party disclosures
Subsequent Events Review - AU-C 560 iReview of events between year-end and audit report date requiring adjustment or disclosure; specific focus on significant grants received or lost, major donor restrictions released, and any going concern events after year-end
Comparative Year Prior Period Review iTesting and reconciling prior year financial statements presented for comparison; verifying net asset opening balances agree to prior year closing balances; evaluating any prior period adjustments or reclassifications
Form 990 Coordination Package iReconciliation of audited financial statement line items to Form 990 schedules (Part IX functional expenses, Schedule D supplemental financial statements, Part XI net asset reconciliation); delivered to your Form 990 preparer in standard format
Analytical Procedures - NP-Specific Ratios & Trends iProgram expense ratio, overhead ratio (management + fundraising as % of total expenses), operating reserve ratio, revenue concentration analysis, donor retention trends; comparison to prior year with explanation of significant variances
Management Representation Letter - AU-C 580 iObtaining written representations from management confirming completeness of donor restriction information, grant compliance, accuracy of functional expense allocations, and their responsibility for the financial statements
Deliverables
Independent Auditor's Report - NP Opinion iFormal audit opinion issued by the licensed CPA of record; specifically references ASC 958 (Not-for-Profit Entities) as the applicable financial reporting framework; includes explanatory paragraphs for going concern or emphasis of matter as required
Audited Financial Statements Package - NP Format iComplete set of audited nonprofit financial statements: Statement of Financial Position, Statement of Activities, Statement of Functional Expenses, Statement of Cash Flows, and all required ASC 958 footnote disclosures
Management Letter / Internal Control Communication iWritten communication of all significant deficiencies and material weaknesses identified - including NP-specific findings such as donor restriction misclassification, functional allocation errors, grant compliance gaps, and segregation of duties weaknesses
Audit Findings Summary - Plain Language for Board iA non-technical plain-English summary of audit results, any proposed adjustments, and areas requiring board attention - formatted specifically for presentation at board of directors meetings
Proposed Adjusting Journal Entries (AJEs) iSchedule of all audit adjustments with explanations - including net asset reclassifications, grant accrual adjustments, pledge receivable allowance entries, and functional expense reallocation entries
Form 990 Reconciliation Package iStructured tie-out of audited financials to Form 990 line items - Part IX functional expense schedule, Schedule D supplemental, Part XI net asset reconciliation - delivered to your Form 990 preparer in standard format
Completed Audit File (Available on Request) iComplete, indexed audit workpaper file available for regulatory inspection, peer review, successor auditor review, or grantor audit requirements
Team & Support
NP Audit Senior iAudit senior with specific nonprofit audit experience assigned to your engagement from planning through opinion issuance - familiar with ASC 958, Form 990 reporting, and grant compliance requirements; not rotated mid-engagement
Engagement Lead Review iEngagement lead reviews all workpapers and issues the final audit opinion - with specific ASC 958 and NP GAAP expertise; independence confirmed per AICPA ethics requirements; senior sign-off before every delivery
Direct Communication Throughout Engagement iDirect email and Zoom access to your audit senior and engagement partner throughout the engagement - no ticketing system, no call center; response within 4 business hours on all open items
NP-Specific PBC List - Detailed & Customized iA comprehensive nonprofit-tailored document request list covering: all grant agreements, donor restriction letters, endowment statements, board minutes, investment statements, Form 990 draft, and all standard audit support items - sent at engagement start
Secure Document Portal (SOC-Compliant) iEncrypted portal for all document exchange - grant agreements, donor records, and financial statements handled with enterprise-grade data security; no email attachments, no unsecured file shares
Weekly Status Updates During Fieldwork iProactive weekly email updates on audit progress, outstanding PBC items, and estimated completion - timed to your Form 990 and any federal compliance filing deadlines
Completion Call (Draft Review Before Issuance) iVideo call with your Executive Director/CFO to walk through all audit findings, proposed adjustments, and management letter comments before the final report is issued - no surprises at opinion issuance
Board Presentation-Ready Audit Summary iA clean, professional one-page audit results summary suitable for presentation to your board of directors - plain language, key numbers highlighted, findings explained in non-technical terms
Unlimited Support Throughout Engagement iReach your named audit senior at any time during the engagement - no support tickets, no call center queues. Ask questions, request clarifications, or discuss accounting issues via email, scheduled call, or video meeting with no extra charge.
Scheduled Check-In Calls iRegular structured calls scheduled at your convenience throughout the engagement - weekly, bi-weekly, or as needed - to review open items, address questions, and keep the audit moving on timeline.
Dedicated Support Email Line iA dedicated engagement email address monitored by your audit team - submit questions, send documents, or flag issues anytime. All emails acknowledged within one business day.

Add-Ons - Separately Priced

Optional services available based on your organization's needs. Hover a card to learn more.

⚑ Important Disclaimers:

(1) Nonprofit audit services are performed in coordination with an independent, licensed CPA firm of record. The audit report and opinion are issued solely by the CPA firm of record in accordance with auditing standards generally accepted in the United States of America (GAAS) and, where applicable, Government Auditing Standards (GAGAS / Yellow Book issued by the U.S. Government Accountability Office).

(2) A fixed fee applies based on the agreed scope and the assumption that the client provides a complete and accurate Prepared-By-Client (PBC) list - including all grant agreements, donor restriction documentation, endowment statements, board minutes, and reconciled financial statements - by the agreed timeline. Delays or incomplete documentation may result in additional fees at $125/hr.

(3) Turnaround time is measured in business days from receipt of a complete and audit-ready nonprofit PBC list, not from the engagement start date. The NP PBC list specifically requires: all active grant agreements, donor restriction letters, investment statements, Form 990 draft (if available), and board-approved trial balance.

(4) Single Audit (Uniform Guidance, 2 CFR 200) applies to organizations expending $750,000 or more in federal awards in a fiscal year and is a mandatory legal requirement - not an optional service. The add-on fee covers GAGAS Yellow Book compliance, SEFA preparation, and major program compliance testing. Number of major programs is determined per the risk-based approach under 2 CFR 200.518.

(5) This engagement covers a financial statement audit of a nonprofit organization under GAAS and ASC 958 (Not-for-Profit Entities). It does not include the preparation or filing of Form 990, legal advice, ERISA compliance consulting, actuarial services, or tax return preparation. Form 990 coordination (reconciliation to audited financials) is included as described above.

Nonprofit Audits Done Right. Every Time.

We work alongside your firm to deliver compliant nonprofit audits - covering everything from standard GAAS requirements to federal grant compliance. One dedicated team, one point of contact, partner-ready workpapers on every engagement.

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+1-646-827-4348

chris@my-cpe.com

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