Choosing the right auditor for your nonprofit organization is a difficult decision. An auditor performs a vital service to your organization and can have a significant voice among your leadership and in your boardroom. It is critical that your nonprofit auditor is properly positioned to be the right voice.
Nonprofits typically weigh firm capabilities, reputation and fees in making their auditor decision. However, nonprofits should also consider the firm’s client portfolio as another critical decision factor. A nonprofit should fit within the CPA firm’s client portfolio with regard to operating style, budget and staff size. And this is especially true for small and medium sized nonprofits that face unique operating challenges. These typically include:
- Limited segregation of duties due to staffing constraints
- Reliance on board-members to perform tasks normally completed by staff
- Administrative duties shared with programmatic/operational staff
- Less formal policies and procedures
- Strong operational focus
A nonprofit auditor that focuses on small and medium sized nonprofits understands these challenges and analyzes the mitigating factors that may bolster the internal controls to avoid issuing a control deficiency letter. A nonprofit auditor that focuses in a particular area is more likely to become a trusted advisor because the auditor knows how other like-organizations overcome the inherent challenges.
Smaller nonprofits may not receive the appropriate CPA resources from their audit firm if that firm services larger clients. It is natural and understandable that larger clients receive services from more knowledgeable staff.
Mullins, PC is devoted to serving small and medium sized nonprofits and is your best choice as a nonprofit auditor in the DC / Baltimore metropolitan areas because of our commitment to this sub-sector of the nonprofit community and our ability to become your trusted advisor.