Helping Nonprofits Strengthen Accountability, Transparency, and Financial Confidence
Nonprofit organizations exist to serve a mission. Whether your organization provides housing, education, health services, community support, advocacy, faith-based outreach, arts programming, or other charitable work, your financial reporting must inspire confidence among boards, funders, donors, regulators, lenders, and the communities you serve.
At RTN CPA, our nonprofit auditing services are designed to do more than satisfy a requirement. We help nonprofit organizations build trust, strengthen financial reporting, improve internal controls, and navigate the accounting complexities that often arise in the nonprofit environment. Our audits are technically sound, clearly communicated, and grounded in the realities of how nonprofit organizations actually operate
We understand that nonprofit accounting and nonprofit auditing are different from for-profit work. Nonprofit organizations deal with fund accounting, donor restrictions, grant compliance, contribution accounting, functional expense reporting, board governance, and financial statement disclosures that require specialized understanding. The current AICPA 2026 Not-for-Profit Entities – Audit and Accounting Guide specifically identifies areas such as fund accounting, financial statement preparation, contributions received, agency transactions, revenues and receivables from exchange transactions, and nonprofit audit planning and risk assessment as central nonprofit topics. [yellowbook-cpe.com]
With more than 20 years of experience serving nonprofit and governmental organizations, RTN CPA provides a high-touch audit experience that is responsive, organized, and educational. We do not disappear after the report is issued. We support our nonprofit audit clients during the audit and throughout the year, helping management and boards think through accounting questions, financial reporting issues, governance concerns, and changing compliance expectations.
What Is a Nonprofit Audit?
A nonprofit audit is an independent examination of an organization’s financial statements, selected internal controls, and other matters relevant to financial reporting and compliance. The objective is to determine whether the financial statements are fairly presented in accordance with the applicable accounting framework and whether the organization is operating with appropriate financial discipline.
For nonprofit organizations, that work involves much more than verifying balances. A proper nonprofit audit requires the auditor to understand how nonprofit transactions are classified, how grants and donations are recognized, how restricted funds are tracked, and how reporting supports both compliance and stewardship. The AICPA’s 2026 nonprofit guide notes that nonprofit entities face distinctive issues involving financial statements, fund accounting, contributions, agency transactions, exchange transaction revenue, and nonprofit-specific audit planning. It also notes current updates involving SAS No. 145 on understanding the entity and assessing risks of material misstatement and SAS No. 146 on quality management for engagements conducted under generally accepted auditing standards. [yellowbook-cpe.com]
Key Technical Areas in Nonprofit Auditing
A nonprofit financial statement audit may involve technical issues such as:
- Net assets with donor restrictions and without donor restrictions
- Contribution revenue versus exchange transaction analysis
- Grant and contract accounting
- Statement of functional expenses
- Allocation of management and general costs
- Liquidity and availability disclosures
- Board-designated reserves
- Endowments and restricted gifts
- Agency transactions and pass-through relationships
- Internal controls over financial reporting
These are not side issues. They are central to whether the financial statements are accurate, credible, compliant, and useful to the nonprofit’s board, finance committee, grantors, donors, and outside users. The AICPA and current nonprofit accounting guidance continue to treat these matters as core nonprofit reporting issues. [yellowbook-cpe.com], [AICPA Webc…f the Week | Outlook]
Why Nonprofit Audits Matter
Many nonprofit organizations need an audit because it is required by a state regulator, funding agreement, lender, grantor, bylaw, or board policy. But a nonprofit audit should never be viewed only as a compliance burden. A well-executed audit adds value that goes far beyond the audit opinion.
A strong nonprofit audit helps organizations:
- Build trust with boards, donors, foundations, and grantors
- Improve transparency in financial reporting
- Strengthen governance and audit committee oversight
- Identify control deficiencies and workflow inefficiencies
- Improve readiness for future growth, financing, and grant opportunities
- Reduce the risk of errors, surprises, and reporting problems
Current nonprofit industry resources continue to emphasize internal controls, fraud risk management, governance, budgeting, liquidity, and board oversight as active areas of focus. The AICPA nonprofit resources page currently highlights materials on internal control essentials, internal controls over financial reporting, audit committee internal control checklists, and internal controls and fraud risk management in nonprofit organizations. The email 2026 Not-for-Profit Industry Update Webcast | May 20 also states that the nonprofit landscape continues to evolve and highlights auditing standards, GAAP, tax considerations, governance, risk management, budgeting, and understanding nonprofit financial statements as current nonprofit topics.
What Makes RTN CPA Different
Many firms can complete an audit. Fewer firms know how to make the audit genuinely useful.
At RTN CPA, we focus on being the kind of nonprofit audit partner clients actually want to work with: technically capable, highly responsive, practical, and available when questions arise. We know that nonprofit leaders often need support not just during fieldwork, but throughout the year. Accounting questions do not wait until audit season. New grants are awarded. Finance staff changes occur. Boards ask questions about liquidity, reserves, restricted funds, disclosures, or internal controls. Management needs help thinking through reconciliations, presentation issues, classification questions, and year-end reporting.
That is why our approach is built around year-round service, not a once-a-year transaction. Your current RTN CPA draft already states that you guide clients through the process with clarity, help them stay organized, and provide practical recommendations to strengthen financial operations.
Year-Round Support Is a Real Differentiator
Clients choose RTN CPA because we:
- Provide specialized nonprofit audit knowledge, not generic audit language
- Explain technical accounting and audit issues in plain English
- Support management and boards throughout the year
- Help clients think through complex nonprofit reporting matters
- Communicate clearly and promptly
- Bring a practical, solutions-oriented mindset
- Understand the real pressures nonprofit finance teams face
We believe the best audit relationship is one where the client feels supported, informed, and stronger after working with us.
Our Nonprofit Audit Services
Our nonprofit auditing services are tailored to the size, complexity, funding structure, and governance needs of your organization.
Financial Statement Audits
Independent audits of nonprofit financial statements performed in accordance with applicable auditing standards and nonprofit reporting requirements.
Internal Control Evaluation
Review of key financial processes and control environments, with practical recommendations for strengthening oversight, documentation, segregation of duties, and financial reporting reliability.
Functional Expense Testing
Assessment of cost allocation methodologies used to classify expenses among program, management and general, and fundraising categories.
Revenue Recognition and Contributions
Evaluation of accounting treatment for grants, donor-restricted contributions, exchange transactions, contracts, receivables, and related disclosures.
Governance and Board Communication
Clear presentation of audit results and relevant observations to management, boards, finance committees, and those charged with governance.
Management Letter Recommendations
Actionable suggestions to improve financial reporting processes, controls, account reconciliations, close procedures, or accounting workflows.
Audit Preparation and Readiness
Support in organizing schedules, reconciliations, supporting documents, lead sheets, and prepared-by-client items to reduce disruption and improve efficiency.
Year-Round Technical Support
Guidance on nonprofit accounting questions that arise between audit cycles, including classification, presentation, disclosure, reconciliations, and reporting issues.
Technical Areas We Help You Navigate
For experienced nonprofit finance professionals, technical depth matters. For newer organizations, clear explanation matters just as much. RTN CPA is built to do both.
Examples of Complex Areas We Help Clients Navigate
- Net asset classification and donor restriction questions
- Contribution versus exchange transaction analysis
- Grant and contract reporting
- Functional expense allocations
- Liquidity and reserve presentation
- Revenue cutoff and receivables
- Board-designated funds
- Agency transactions
- Financial statement disclosures
- Audit readiness and documentation quality
The current AICPA nonprofit guide identifies nonprofit audit planning, risk assessment, fund accounting, contributions, exchange transactions, and financial statement preparation as key areas of nonprofit audit and accounting guidance. [yellowbook-cpe.com]
This matters because nonprofit finance teams often do not just need an auditor to say whether the financial statements are fairly presented. They need a professional who understands the accounting consequences of real-world nonprofit transactions and can discuss them intelligently and clearly.
Our Audit Process
We have designed our audit process to be organized, transparent, and respectful of your team’s time.
1. Planning and Risk Assessment
We begin by understanding your mission, funding sources, accounting processes, financial reporting structure, and key risk areas.
2. Audit Preparation Support
We provide a clear and organized request list and help your team prepare efficiently.
3. Internal Control Review
We evaluate how transactions are initiated, approved, recorded, reconciled, and reported.
4. Fieldwork
We perform audit procedures, review supporting documentation, analyze balances and activity, and assess selected areas of higher risk.
5. Financial Statement Review
We work through financial statement presentation, footnotes, disclosures, and key accounting judgments.
6. Management and Board Communication
We discuss results with management and, where appropriate, present to the board or finance committee.
7. Final Report Delivery
We issue the audit report and communicate recommendations in a way that is practical and understandable.
8. Ongoing Support
After the audit, we remain available to assist with accounting questions, reporting issues, and year-round planning.
Common Challenges We Help Solve
We help nonprofit organizations overcome:
- Inconsistent or incomplete financial records
- Weak internal controls
- Grant tracking issues
- Functional expense allocation challenges
- Audit preparation stress
- Staff turnover in finance roles
- Board-level financial reporting concerns
- Restricted fund confusion
- Documentation gaps and reconciliation issues
Our role is to help your organization move from reactive accounting to confident financial management.
Why Nonprofits Choose RTN CPA
Organizations choose RTN CPA because we combine technical expertise with real support.
Our Strengths
- 20+ years of nonprofit audit experience
- Deep knowledge of nonprofit GAAP and financial reporting
- Strong internal control expertise
- Clear, responsive communication
- Personalized, relationship-driven service
- Year-round advisory support
We are more than an audit firm. We are a trusted advisor to your organization, your finance team, and your board.
Service Areas
We serve nonprofit organizations across:
- California
- Oregon
- Washington
- Nevada
- Arizona
Frequently Asked Questions
What is a nonprofit audit?
A nonprofit audit is an independent examination of financial statements, internal controls, and related financial reporting matters to help determine whether the statements are fairly presented and compliant with the applicable accounting framework.
Who needs a nonprofit audit?
Nonprofits may need an audit based on state requirements, grant agreements, lender requirements, board governance policies, or other funding-related obligations.
What makes nonprofit audits different?
Nonprofit audits involve specialized areas such as fund accounting, donor restrictions, grant compliance, contribution accounting, functional expense reporting, and nonprofit financial statement disclosures. These issues are treated as core nonprofit topics in current AICPA nonprofit audit and accounting guidance. [yellowbook-cpe.com]
How long does a nonprofit audit take?
The timing depends on the organization’s size, complexity, readiness, and the condition of its financial records.
Do you provide support outside of the audit?
Yes. RTN CPA provides ongoing, year-round support to help nonprofits navigate accounting, financial reporting, and governance questions
Why choose RTN CPA for nonprofit auditing services?
RTN CPA provides specialized nonprofit expertise, clear communication, strong technical knowledge, and year-round support — helping nonprofit organizations stay compliant, informed, and confident.
Partner with a nonprofit audit firm that supports you year-round. RTN CPA provides nonprofit auditing services that are clear, technically strong, and designed to help your organization strengthen reporting, internal controls, governance, and confidence. If your organization needs a nonprofit audit, a responsive nonprofit CPA firm, or an audit partner who understands both technical requirements and mission-driven realities, RTN CPA is ready to help.
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