IRS and Audit Compliance

Compliance can be a huge hurtle for nonprofit organizations that do not have the resources to employ an internal audit department or quality assurance personnel.  A hurtle that surrounds compliance is the fact that quality assurance and internal audit activities are generally considered administrative expenses and hence compete with fundraising and grant writing expenses for coveted, unrestricted dollars. Aurora has developed streamlined processes and procedures that can be implemented via our customized tools and templates to facilitate IRS requirements, Audit requirements and Grant compliance.

IRS Requirements
The IRS requirements surrounding nonprofits generally involve timely reporting of Federal Form 990.  Organizations also want to ensure they can indicate on their 990 return that they have certain policies in place and that certain approvals and standards are being upheld.  The Federal Form 990 is generally made available to the public and reviewed in detail by existing and potential funders. As such, it is important to be able to answer in the affirmative on the Form to questions involving the presence of the specifically delineated controls and procedures.

To ensure a timely and favorable Federal Form 990 is filed with the IRS, Aurora has developed templates and checklists to ensure all necessary Board approvals are obtained and documented in meeting minutes before the 990 filing.  We also have compiled policy templates approved by nonprofit attorneys that organizations may customize to ensure the policies enumerated in the Form are implemented in a meaningful way.

Many of the topics in the Form 990 address Board governance, related party transactions, salary surveys and other types of information geared towards ensuring an organization is transparent and is free from conflict of interest.  These underlying themes have been embedded in all of Aurora’s recommended controls and procedures outlined in our Financial Control and Procedural Manual.  Via our manuals, tools and techniques we ensure our clients are prepared for their Federal Form 990 compilation each year.

Audit Compliance
Audit compliance involves monitoring audit due dates and ensuring the correct audit is performed.  At Aurora we believe the audit firm selected should not only be well qualified and price competitive, but should provide value-added services.  We believe the audit firm, while maintaining independence, should become part of the nonprofit organization’s team of professionals that work together to provide seamless and comprehensive services that support the organization and its mission.

Aurora works with clients throughout the selection of an audit firm.  Once selected, we work with the auditors to ensure all accounting records, reconciliations and schedules are audit ready to facilitate the audit process thereby reducing audit fees.  Aurora’s controls and procedures ensure an organization is operating in a sound internal control environment.  This facilitates the prevention of fraud, errors and audit findings!

Grant Compliance
Grant compliance involves understanding the details surrounding the award of government and private dollars.  This is necessary to ensure dollars are expended in line with grant budgets and that required reporting is submitted timely and accurately.

To facilitate grant compliance, Aurora is committed to establishing open relationships with client funding sources.   Over the years we have built relationships with many federal and New Jersey State agencies.  Many times grant compliance can involve budget revisions, time extensions and other alterations to original contracts.  Via our relationships and expertise in grant management, we facilitate compliance surrounding the receipt of these federal, state, city and private awards.