Washington State nonprofits have some new accounting rules starting the first of this year.
Effective January 1 2010, if an organization has:
- Average gross revenue of more than $1 million over the last three years they must have IRS forms prepared or reviewed by CPA or other third party. They will need to submit a Conformation of Independent Third-Party Review that is singed by the organization verifying that a CPA or other professional, independent third party who prepares returns as a part of their business has prepared or reviewed the documents for accuracy.
- Average gross revenue of more than $3 million over the last three years they must have IRS forms prepared or reviewed by CPA or other third party
and
Must have Audited Financial Statements prepared by CPA.
The Audit requirement is waved if the nonprofit receives $500,000 or less in cash contributions. It may also be waved if hit $3 million from non-recurring means, meaning if you had one really good year that may not happen again you could request a waiver from the audit requirement.
More information can be found on the Washington Secretary of States’ Charities Program website here and here. Need help preparing your form 990? We can help.
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I am outsourcing my organization accounts to 3rd party charter accountant organization. Actually my wife is doing book-keeping for the business and I just verify before we send for check up. I feel it is pretty easy once you have the correct computer software.
Having your wife do the books, or look them over, before going to the accountant doesn’t seem like the best internal controls. That is not a set up I would recommend to any organization.