When is a Foundation audit required............

[pcmcpa]

I'm hoping someone can point me in the direction of law that discusses private family foundations, private foundations and public Charities and their need for an audit.

So far I know:

a) a funding source can require an audit as condition for giving the nonprofit the funds.

the state's Attorney General's Office can require publicly supported charities to furnish audited financial statements if revenue and or assets exceed a certain number (depending on the state).

c) the Single Audit Act and OMB Circular A-133 - The Single Audit Act requires states, local governments and nonprofit organizations that expend $500,000.00 or more of federal awards in a year to obtain an annual audit in accordance with the Act.

However, I'm sure I'm missing more. For example, I found one advertisement that says Private Foundations with > $2 million in assets or revenue need an audit (haven't located the particular source of law though).

Any ideas where to look? Thank you in advance for taking time to answer.

[ILLMAS]

I cannot speak for the rest of the states, but the state of IL (Office of the Attorney General) requires for non-profit agencies that have revenue over $300K, to submit audit financial statements along with the IL-AG990. It doesn't matter what type of revenue it is (donations, membership dues, contributions etc...), if it's more than $300K. The threshold before 2010 was for revenue over $150K, but starting in 2010 (returns due in 2010) is $300K. Some foudations require for you to have an annual audit if you would like to continue receive funding and other don't. If your client needs an audit and did not budget for one nor has the funds, ask for a one-time waiver for an audit.

MAS

[michaelmars]

DEPENDS ON STATE LAW