Bartlett, Pringle & Wolf, LLP
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With our full suite of services, distinguished expertise and genuine hospitality, our accountants and consultants are committed to providing you with creative solutions and strategic advice to help you achieve your goals. It is our belief that the greatest reward is to see our clients succeed.
Standing steadfastly behind a mission, nonprofits are driven and committed to improving quality of life. Whether an environmental group, family agency, healthcare institution or other philanthropic organization, all nonprofits have one thing in common—to make a difference. Similar to your mission, BPW lives by our core values. These values are ingrained in our culture and philosophy, reflecting the essence of who we are as a firm. One of these core values is our dedication to supporting the community in which we work and live.
We encourage and support a healthy balance between professional and personal needs and goals. It is important to give back to the community in which we work and live. BPW participates in over 50 local nonprofit organizations by volunteering time and resources on board positions as well as sponsoring and donating to specific causes and special events.
BPW understands that PEOPLE are the core of our business—our team members, community partners, most of all, our clients.
Our commitment to high quality products and services will not waiver. Our superior performance demands excellence in all we do, and we look forward to providing it to you.
Tips for Nonprofits
When trying to determine whether or not your nonprofit organization needs to have an audit, review or compilation, it is important to understand the differences between them, as each one provides different information and varies greatly in scope.
Audit
An audit is the most thorough of the 3 services, and it is conducted in accordance with auditing standards generally accepted in the United States of America. The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. During an audit, the auditors obtain an understanding of the organization, perform procedures to obtain evidence about the amounts and disclosures in the financial statements and document the organization’s internal controls. In the final stage of the audit, the auditors will prepare a report stating their opinion on the financial statements and typically issue a letter to management and the board about their findings and internal control recommendations.
Review
A review of includes primarily applying analytical procedures to management’s financial data and making inquiries of company management. However, it is important to know that a review is substantially less in scope than an audit, and as such, the accountant does not express an opinion regarding the financial statements. During the review the accountant will perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements.
Compilation
The purpose of a compilation is for the accountant to assist management in presenting financial information in the form of financial statements. The CPA does not audit or review the documents when a compilation is performed, and as such, they do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States.
Since each service is so different, it is important to discuss with your advisor the best solution for your organization and develop a strategy that best meet its needs.
Is an Organization Required to Have an Audit?
Not all nonprofits are required to have an audit performed. However, the California Nonprofit Integrity Act requires any nonprofit with revenue in excess of $2 million to have an audit. Other possible reasons for an organization to have an audit are: to comply with government regulations, to assist the board of directors in fulfilling their fiduciary responsibilities, to ensure good corporate governance, to meet requirements of donors or other funding sources and to meet lender requirements.
Should an Organization Have an Audit Committee and What Are Their Responsibilities?
If an organization has an annual audit, it is a good idea to have an audit committee composed of individuals who have financial experience and are knowledgeable about the audit process.
The Audit Committee is responsible for the oversight of the integrity of the organization’s financial statements and the independent auditor’s qualifications, independence and performance. Some of the committee’s responsibilities include:
- Assess the auditor’s independence and evaluate all relationships between the independent auditor and the organization. If non-audit services exist, determine the appropriate safeguards to ensure independence is maintained during the audit.
- Meet to review and discuss the company’s annual audited financial statements with management and the independent auditor, including the review of specific disclosures.
- Review any audit problems or difficulties with the independent auditor and discuss management’s response.
- Report regularly to the Board of Directors.
Bartlett, Pringle & Wolf has a significant presence in the nonprofit sector through board and volunteer participation. Through our direct relationships, we understand your needs and expectations. BPW delivers high-quality audits that reflect heightened detail, transparency and accuracy. In addition, our ongoing financial and operational advice can save you time, money and, most of all, worry. We are happy to help with the following services:
•Audit, compilation or review
•Form 990 preparation
•Internal control evaluations
•Agreed upon procedure documents
•Litigation support
We are uniquely qualified to serve your compliance and consulting needs as we see first-hand the challenges you face every day. BPW can help address these concerns by asking the right questions and providing the right results.
Contact Bartlett, Pringle & Wolf, LLP 1123 Chapala Street, 3rd Floor Santa Barbara, CA 93101 Phone: (805) 963-7811 Email: [email protected] www.bpw.com