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Church and Nonprofit Auditing

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Maintaining Your Nonprofit Compliance With Audits in Freehold, NJ

Churches and not-for-profit organizations are allowed to operate without paying income taxes, but they have to demonstrate their adherence to the rules that grant a tax-free status. Alston & Company specializes in church and nonprofit auditing and consulting services in Freehold, New Brunswick, Trenton, NJ, and all tristate area communities.

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What are Attestation Services?

Compliance services, also called attestation services, are functions designed to prove an organization is adhering to legal regulations imposed by their state government and the federal government.

There are three levels of compliance, differing in extensiveness and the purpose they are used for:

  • Compilations are the preparation of an accurate financial statement based off of generally accepted accounting principles (GAAP). This level of compliance is usually used for internal purposes, but some banks accept the generated statement as part of maintaining a loan.
  • Reviews involve preparing a financial statement and applying basic analytic procedures to see if the statements and records make sense.
  • Audits involve preparing the statement and rigorously investigating all records to see if any misstatements are present. This is the highest level of attestation and is required for Non-profits and churches to maintain their status.
  • Additionally, Alston & Company provides a unique service for churches: the combined compilation-review service. In this function, our firm looks over your records and provides two basic reports. The first is a professional financial statement that a financial institution can accept. The second is a letter for your church’s management team that provides comments relating to compliance with nonprofit regulations and rules for churches. We focus on compliance with IRS regulations for churches. We will examine, but not exclusively, the internal controls, bylaws, operating procedures, and other managerial elements that keep the church running. These reports help improve efficiency without an audit opinion.

The financial statements drafted as part of each type of attestation allows nonprofits and churches to plan for the future while demonstrating how they presently fall in line with all regulations.

Attestation for Churches

While every not-for-profit entity has to undergo compliance services regularly, churches are in a unique position because they are often too worried about maintaining compliance. The unfortunate reality is that many religious organizations spend the money that could be used serving their members and community on a CPA’s formalized opinion—that is, an audit—at times when lower levels of compliance are more appropriate. Our full-service accounting company understands this reality and properly times out audits so that they only occur when required, offering reviews and compilations when suitable. 

Contact Our Firm for Specialized Audit Services

Alston & Company is proud to help churches and other nonprofit organizations through audits, compilations, and reviews specifically designed for them. For more information about the support we offer for religious organizations and other not-for-profits, call us and schedule a consultation today.