In Atlanta, there are many firms that can provide an audit to your nonprofit organization. After reviewing the promotional materials, websites and related messaging, it may appear they are equally qualified to manage the task. While each may meet the broad technical qualifications to conduct the audit, it doesn’t necessarily mean they are a good fit for your organization’s needs. The truth is that each organization, it’s management and Board of Directors has differing needs which some firms are better suited to manage than others. Although technical competence is certainly a necessity there are other criteria that an organization needs to assess during the proposal review stage. The most obvious is often audit fees, but also the level of experience, time allocation, audit scheduling, structure and more. The truth is the more information that can be collected during the request for proposal (RFP) process, the easier it will be for management to make an informed decision about the best option. Remember, a good auditor will provide more than an audit report, but also share insights and best practices.
Non-Profit RFP Best Practices
When assembling your nonprofit RFP, consider asking questions about the following:
- Experience – Finding an audit firm that has experience with an organization that is similar to yours is very important. Remember, the experience should extend beyond organization type and mission, but also to ones that receive funding from similar sources. For example, if your organization receives a federal or state grant(s), then make sure the provider works with other nonprofits that have a similar funding structure. The more familiar a provider is with requirements established by funding sources the more seamless the audit process. In addition, be sure to identify those providers that work with several nonprofits and have an established niche in the area.
- Time Allocation – It’s also important to understand how much time will be spent completing the audit and by what level of staff. While a partner or manager is not needed to complete every part of the audit work, it’s helpful to understand at what point the more experienced professionals will be involved. Asking for this information also has the added benefit of allowing an organization to compare “apples to apples” in terms of how the audit will be managed. If there are differences in pricing having this information will provide clues as to where the discrepancies may exist.
- Pricing – This is probably one of the most important parts of the RFP and the one area where many look first when reviewing submissions. However, be sure to understand all the elements that are included in the presented fee. It’s important to understand if there are any variations for multi-year pricing, an explanation of any one-time costs and potential for additional costs incurred during the first-year audit.
- Additional Fees – The details always seem to be in the fine print. As a result, be sure to include a section in the RFP that specifically addresses additional fees. The best way to do this is to ask about prior audit situations which have triggered additional (and unexpected fees). Not only will this help to identify areas that can increase costs, but it will give clues about the auditor’s expectations about access to financial records, documents, and other important information.
- Training – Most audit firms will openly share their experience auditing other nonprofits and use this as a basis for demonstrating their understanding of the niche. While this information is valuable, it’s also important to understand the amount, type and level of training offered to junior staff members who work on these audits as well. Does the firm provide a certain number of training hours on nonprofit accounting and audit issues specifically? Be sure to ask this question as it will reveal both the level of commitment to the niche and the firm’s depth of experience.
Contact Us
Change can sometimes be a difficult process, but well worth it in the end. The next time your organization prepares an RFP remember these important tips. If you have questions about the information presented above or need assistance with your annual audit, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.