Nonprofit CPA in New York City, NY
Financial statement audits, restricted gift accounting, Form 990 preparation and board reporting for New York City nonprofits whose funders, directors and regulators each read the numbers differently.
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A nonprofit CPA for New York City organizations
A New York City nonprofit can be financially sound and still struggle to explain its numbers. A foundation gift is restricted to one program. A government contract pays only after costs are incurred and documented. The board wants results for the fiscal year, while a funder wants a report on its own grant period. All of it has to come from the same set of books.
RTN CPA is a certified public accounting firm that serves nonprofit organizations, government agencies and districts, and small businesses. As a nonprofit CPA for New York City organizations, we focus on the records behind the reports: restricted contributions tracked by purpose and time, program costs you can explain, and financial statements that agree with the Form 990 and the state filing.
Audit work is led by Roman Richardson, CPA, who has more than 20 years of experience focused on nonprofit organizations and governmental districts. Tax work is led by Paul J. Stroub, CPA. RTN CPA is based in California and does not have a New York office.
Audits and reviews under New York's charity rules
For many New York charities, the first audit requirement comes from the state. Organizations registered with the Attorney General's Charities Bureau under Article 7-A of the Executive Law (generally those that solicit contributions in New York) file an annual CHAR500 report, and Executive Law section 172-b sets which CPA report must go with it.
For fiscal years beginning on or after July 1, 2021, more than $1,000,000 in total revenue and support requires an independent CPA's audit report; between $250,000 and $1,000,000, a review report; $250,000 or less, no CPA report. Funders, government contracts and lenders can require an audit at lower levels.
- financial statement audits under nonprofit accounting standards
- reviews for organizations in the CHAR500 review range
- Single Audits under the Uniform Guidance (2 CFR 200, Subpart F)
- compliance audits tied to specific grants and contracts
- internal control findings reported to the board or audit committee
New York also sets rules for who oversees the audit. Under Not-for-Profit Corporation Law section 712-a, in effect since July 1, 2014, a corporation that must file an audit report has its board, or an audit committee of independent directors, retain the auditor and review the results. With annual revenue over $1 million (last year, or expected this year), that oversight also covers the audit plan in advance, internal control weaknesses found, and the auditor's independence each year. We plan engagements around those meetings.
An audit also has to stay independent of the work it tests. If RTN CPA keeps your books or acts as a part-time finance lead, we evaluate the AICPA independence rules before accepting the audit, and in some cases another firm will need to perform it.
Foundation, government & federal grant compliance
A multi-program nonprofit in New York City can hold many active grants, each with its own period, budget and report. A foundation may want a budget-to-actual report each spring; a government contract may reimburse only allowable costs, monthly, with documentation attached. Both have to come from the general ledger, not a spreadsheet rebuilt each time.
Federal money often reaches a nonprofit through a state or city agency, where it is easy to overlook. It still counts: a Single Audit is required once federal award expenditures reach $1,000,000 in a fiscal year beginning on or after October 1, 2024 ($750,000 for earlier fiscal years), pass-through funds included.
- tracking each grant by purpose, period and budget line
- foundation interim and final reports tied to the ledger
- allowable-cost and documentation reviews for reimbursement claims
- identifying federal pass-through funding early
- Schedule of Expenditures of Federal Awards (SEFA) preparation
Form 990 and the New York CHAR500
Your Form 990 is often the first detailed financial document a prospective donor, program officer or board candidate reads. It shows how expenses divide among programs, management and fundraising, how the board governs itself, and how key people are paid. A return that does not agree with the audited statements invites questions.
In New York, the 990 travels with the state filing: the Charities Bureau's rules require most filers to attach a complete copy of Form 990, 990-EZ or 990-PF with schedules to the CHAR500 (since March 16, 2022, public charities may leave donor names and street addresses off the Schedule B they submit). We prepare the federal return so the 990, the CPA's report and the CHAR500 agree.
- Form 990, 990-EZ and 990-PF
- Schedule A public support calculations
- Form 990-T and unrelated business income questions
- Schedule B handling for the CHAR500 attachment
- consistency between the 990, audited statements and CHAR500
Fund accounting for multi-program nonprofits
A gift with donor restrictions is not program service revenue, and a conditional grant is not revenue until its conditions are met. When the books treat them all as income, nobody can say with confidence how much money is free to spend.
We keep the accounting a multi-program organization needs: net assets with and without donor restrictions tracked separately, releases recorded when a purpose or time restriction is met, shared costs allocated across programs on a documented basis, and a monthly close that produces nonprofit financial statements your board and auditor can both use.
- monthly bookkeeping, reconciliations and close
- donor-restricted gifts tracked by purpose and time
- conditional grants and releases from restriction
- shared-cost allocation across programs and sites
- year-end schedules prepared for the auditor
Board reporting & fractional CFO support
A monthly statement of activities can look complete and still leave directors asking basic questions. How much cash is already committed? Which programs are over budget? How long could we operate on unrestricted resources if a large grant payment were late?
A fractional CFO or controller builds reporting that answers them: budget-to-actual by program, a cash forecast that reflects reimbursement timing, and a few liquidity measures the board sees every meeting. Just as important are internal controls sized to the finance team, so one person is not approving, recording and reconciling everything. An internal controls review can also be a standalone consulting engagement.
- fractional CFO and controller services
- annual and multi-year budgeting by program
- cash flow forecasting around reimbursement timing
- board and finance committee reporting packages
- internal controls review and segregation of duties
Common problems in multi-funder organizations
These come up most often in organizations running several programs on several kinds of funding.
- Restricted gifts released from restriction late, or never released
- Conditional grants recorded as revenue as soon as the award letter arrives
- Shared costs allocated one way in grant reports and another way at year end
- A Form 990 that does not agree with the audited statements or the CHAR500
- Revenue passing $1 million before an audit committee or audit plan is in place
Each can be fixed. The cost comes from finding them late, when corrections run back through reports already sent to funders.
What working with RTN CPA looks like
We start with what shapes the engagement: your revenue mix, your Charities Bureau registration, what funders and contracts require, and your next deadline.
Scope is set out in a written engagement letter before work begins, whether the engagement is an audit, a review, accounting or advisory work. Across the firm, RTN CPA has more than 25 years of experience and has completed more than 100 audits.
- a first call about revenue, funding sources and deadlines
- a written engagement letter with a defined scope
- a document request list before fieldwork or setup begins
- findings explained in plain language to management and the board
No CPA firm can promise an unmodified audit opinion. We can show you what is missing before fieldwork starts.
Choose a starting point
Go straight to the service you need:
Working with nonprofits in New York City
This page is for nonprofits across the five boroughs and the wider New York metropolitan area, from large foundations and cultural institutions to neighborhood service providers. Engagements are handled remotely from California. RTN CPA's other location pages:
Before your next audit or filing deadline
If your finance team produces one set of numbers for the board, another for funders and a third for the Form 990, the problem is usually the reporting process, not the people.
Tell us your total revenue and support, your main funding sources and your next deadline. We will tell you which engagement fits (an audit, a review, accounting cleanup or CFO support) and what needs to be in place first.
Questions New York City nonprofits ask
Does RTN CPA have an office in New York City?
No. RTN CPA is a California firm with addresses in Los Angeles and Roseville. Engagements for New York City organizations are handled through our secure file upload and scheduled phone or video meetings, and if any part of the work needs to happen in person, we discuss it when we set the scope. New York has its own registration rules for out-of-state CPA firms that perform audits and reviews for New York organizations, and we confirm an engagement meets them before accepting it.
When does a New York charity need an audit instead of a review?
For fiscal years beginning on or after July 1, 2021, charities registered under Article 7-A attach a CPA's audit report to the CHAR500 when total revenue and support exceeds $1,000,000, and a review report between $250,000 and $1,000,000. The Attorney General can require an audit after reviewing a review report. Funders and contracts can require one at lower levels, and a Single Audit applies once federal award expenditures reach $1,000,000 in a fiscal year beginning on or after October 1, 2024.
Who on our board has to be involved in the audit?
If your corporation must file an audit report, Not-for-Profit Corporation Law section 712-a gives oversight to the board or an audit committee of independent directors, who retain the auditor and review the results and any management letter. With annual revenue over $1 million, they also review the audit plan beforehand and the auditor's independence each year. Directors who are not independent may not take part in those deliberations or votes.
What is the difference between an audit and a review?
An audit gives reasonable assurance that the financial statements are free of material misstatement, and it includes testing of the underlying records. A review gives limited assurance and relies mainly on inquiry and analytical procedures. The CHAR500 thresholds set a minimum; a foundation or lender may ask for more.
How should we record a multi-year foundation grant?
It depends on the terms. An unconditional promise restricted to a purpose or period is generally recorded when made and held with donor restrictions until released. A grant with a barrier to overcome and a right of return is conditional and is not recognized until the condition is met.
Can you help reconcile our grant reports with our books?
Yes. Most differences come from timing (a grant period that does not match the fiscal year), costs coded outside the grant in the ledger, or allocations calculated differently for the funder than at year end. We set up grant tracking so each report starts from the general ledger.
Call (888) 616-8070 or schedule a consultation to get started.
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