California Nonprofit Legal Aid Organizations: Do You Need a CPA Financial Statement Review?

Nonprofit organizations face unique financial reporting requirements, particularly when applying for government, foundation, or other grant funding. For California nonprofit legal aid organizations, one important requirement may be an independent CPA financial statement review.

The State Bar of California's Legal Services Trust Fund Program provides funding to nonprofit organizations that deliver free civil legal services to low- and moderate-income Californians. The program includes funding through Interest on Lawyers' Trust Accounts (IOLTA) and the Equal Access Fund (EAF).

For organizations applying for this funding, financial reporting is an important part of the application and eligibility process.

When Can a Financial Statement Review Be Used?

According to the State Bar of California, organizations applying for Legal Services Trust Fund Program grants generally must provide audited financial statements prepared by an independent CPA.

However, organizations with gross corporate expenditures of less than $500,000 may submit a financial statement review instead of an audit.

That distinction can be significant for a smaller nonprofit.

A financial statement review provides limited assurance on an organization's financial statements and is substantially less extensive than a financial statement audit. For an organization that qualifies to submit a review, this can mean a more efficient and affordable way to satisfy the applicable financial reporting requirement.

Experienced CPA Services for Nonprofit Organizations

I am a California CPA with extensive accounting and assurance experience, including experience performing financial statement reviews for nonprofit organizations.

I understand that smaller nonprofits often operate with limited administrative resources and tight budgets. An accounting engagement shouldn't become an unnecessarily expensive or disruptive project.

My goal is straightforward: complete the engagement accurately, efficiently, and at a reasonable cost while helping the organization meet its financial reporting requirements.

Services can include:

• CPA-reviewed financial statements

• Nonprofit financial statement preparation

• Required financial statement disclosures

• Supporting schedules and account analysis

• Assistance preparing accounting records for the review

• Year-end adjusting entries and financial reporting assistance

• Audit preparation assistance for organizations that require an audit

  
  

Preparing for Your Nonprofit Financial Statement Review

Good preparation can make a CPA review considerably more efficient.

Before beginning an engagement, I can provide your organization with a document request list identifying the accounting records and supporting documentation we'll need. Having these items organized before the engagement begins can reduce unnecessary questions, delays, and professional fees.

For organizations whose accounting records need some cleanup before the review, assistance can also be provided to get the books ready for the engagement.

Affordable CPA Reviews Without Sacrificing Quality

Smaller nonprofit organizations shouldn't have to choose between professional financial reporting and staying within their budget.

My practice focuses on providing efficient, affordable CPA financial statement reviews while maintaining the professional standards required for a CPA review engagement.

Whether your organization needs reviewed financial statements for a State Bar funding application, another grant program, a lender, a board of directors, or another third party, I can help determine what is required and provide an efficient path toward completion.

Does Your California Nonprofit Need a Financial Statement Review?

If your nonprofit legal aid organization is applying for IOLTA or Equal Access Fund funding through the State Bar of California and has gross corporate expenditures below $500,000, a CPA financial statement review may satisfy the applicable financial statement requirement instead of an audit. Organizations should confirm their eligibility and current requirements with the State Bar for their particular application.

If you need a California nonprofit financial statement review, or simply want to discuss whether a review is appropriate for your organization, contact Streamlined Reviews to discuss your situation.