Have questions about the "Audit" requirements?

Worried you can't afford it?

Well, below are answers to some of those questions.

One of the requirements listed is that my NAMI Affiliate needs to have an audit.  

1. How do we go about that?
2. How often does that need to occur?
3. Is there any flexibility on this requirement?

The following guidelines for the level of financial review NAMI requires are as follows:

• If your organization has gross annual revenue of $500,000 or more, you need to have an annual audit.
• If you organization has gross annual revenue of between $50,001 and $499,999, a financial review will be sufficient.
• If your organization has gross annual revenue of $50,000 or less, a compilation will be sufficient. (Most of NAMI NC affiliates would fit under this bullet).

We recommend that you shop around for the best rate you can find. 

1. A good rule of thumb, especially in small organizations, is to stay local when choosing an accounting firm, rather than going with a big name that has less incentive to give you personalized attention. 
2. You should also ask about whether a firm offers pro bono services to small nonprofits, or if the rates can be reduced for nonprofit organizations. 
3. Another factor in the cost of these services is the area of the country in which you operate, and whether you are in an urban or rural community. 
4. An additional consideration in the cost of these services is the length of time it will take the accountants to complete the work, and that is often based on how well your books have been kept and the organization of your records.
5. Below are some very general guidelines for what you might expect to pay - but these are not hard and fast rules and you can expect some variation depending on where you operate.

• Audit services can cost between $4,000 and $10,000
• A Financial Review can cost between $2,000 and $6,000
• A Compilation can cost between $400 and $1,000

Please let us know which approach your affiliate will be using. More information can be found at the bottom of page 32 section 4 in the SOE Better Together Affiliate Handbook.

I look forward to hearing from you as we continue to move forward with the Standard of Excellence endeavors-Brenda Piper- bpiper@naminc.org