Question 1

When does a nonprofit need a Single Audit?

Accepted Answer

A nonprofit generally needs a Single Audit when it expends $1 million or more in federal awards in a fiscal year. The threshold rose from $750,000 under recent Uniform Guidance updates, so some organizations that previously required a Single Audit may no longer qualify. The test is based on federal funds expended — not received or budgeted — across all programs, including pass-through awards from state and local agencies.

Question 2

What is a Uniform Guidance audit?

Accepted Answer

A Uniform Guidance audit, or Single Audit, is a compliance and financial audit required under 2 CFR 200 for organizations that spend federal award money above the threshold. It covers your financial statements plus testing of major federal programs for compliance with rules on allowable costs, eligibility, cash management, procurement, and reporting. The result includes a Schedule of Expenditures of Federal Awards and a report on any findings.

Question 3

Do you prepare Form 990?

Accepted Answer

Yes. We prepare Form 990, 990-EZ, and 990-T, along with the state charitable registrations and renewals many organizations must file. Because Form 990 is a public document that donors, grantors, and watchdog groups review, we treat it as part of your transparency strategy — presenting program, governance, and financial information accurately and consistently with your audited statements.

Question 4

How does functional expense allocation work?

Accepted Answer

Functional expense allocation splits your costs across program services, management and general, and fundraising so financial statements show how resources support the mission. Under nonprofit GAAP, organizations must present expenses by both function and natural category, typically in a statement of functional expenses. We help you build reasonable, well-documented allocation methods that hold up under audit and satisfy funder expectations.

Question 5

Do nonprofits pay any taxes?

Accepted Answer

Tax-exempt organizations can still owe tax on unrelated business income (UBIT) — revenue from activities not substantially related to their exempt purpose, such as certain advertising, rentals, or commercial services. This income is reported on Form 990-T. We help you identify potential UBIT, apply available exceptions, and structure activities so unrelated income does not put your exempt status or budget at risk.

Question 6

Can you support SAMHSA- and HRSA-funded organizations?

Accepted Answer

Yes. We audit and advise organizations funded by SAMHSA, HRSA, and other federal agencies, and we know the recurring Single Audit findings these grantees face around eligibility, allowable costs, cash management, and reporting. We help you meet Uniform Guidance requirements throughout the grant lifecycle and prepare documentation that stands up to federal and pass-through monitoring.

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Functional Expense Allocation: Program vs Overhead Done Right

Top Single Audit Findings for SAMHSA-Funded Organizations

Single Audit Threshold Rises to $1 Million: Do You Still Qualify?

REAC Submission: Filing Under the $1M Single Audit Threshold

PDPM Case-Mix Creep: Defending Your SNF Coding Before Audit

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Industries: Nonprofit