In the process of lowering our overhead cost l am considering preparing Form 990 in house rather than allowing the auditors to handle it for an average of $5,000.00. Does any one have a better ideas on how to extract audited financial information for use on Form 990? Thanks Francis
Form 990- Preparation
Answers
Francis -
Not sure what the question actually is.... I'm sure the 990 has to be filed before your audit would get completed. While the 990 is annoying to file, $5K seems to be an exorbitant rate.
W
We file Form 990 after the completion of the audit. And the question is how to use the audited financial information to complete the Form 990. Thanks for your response
I'm sorry Francis, I don't see the issue.
Depending on how you keep your books; the audit and how it was conducted, why aren't you pulling the financial details from your "now audited" books?
Specifically, if your books "mimic" the information required to properly complete the 990, it would be a "slam dunk". If on the other-hand, your books don't come close and it requires a re-working of all your numbers, then besides the extra work, the financials have been audited, so the numbers in total "should be" correct.
Hopefully this helps, otherwise I'm lost...
Sorry...
I complete 990's all year for hospitals. We use the information from the trial balance to classify the data reported on the 990. However I have noticed that one non-profit for which I volunteered for set up their chart of accounts in a manner they thought would help reporting by their various programs, but made the roll up for analysis and
How are your records maintained?
My parent organization is encouraging our locals to prepare and file the 990 themselves. However, this is an extremely confusing document to put together. In no way are you able to exactly code your TB to "pull" to the return, and there are quite a few additional schedules to complete. It takes me more work with my audit firm to get the 990 completed than the audit. I would encourage you to take this work out to bid. $5,000 Does seem a bit high.
Yes I agree 100% they do not realize the big penalties for filing wrong or incomplete returns.
The starting point is the trial balance (TB). Therefore, your TB needs to reflect any adjustments that auditors made in preparing the audit report. The auditors have schedules that cross-walk the base TB numbers to the audit report numbers. They should make these schedules available upon your request.
The 990 requires a "Statement of Revenue", "Statement of Functional Expenses", "Balance Sheet", "Reconciliation of Net Assets", and a schedule to reconcile the 990 to your audited financials. For the Statement of Revenue and Balance, I put the TB in a worksheet, create a column for each number required on these two forms, and start copying TB numbers into the appropriate column. Sum the columns, and that work is done.
The Statement of Funcitonal Expenses requires every expense transaction to be allocated to Program, Fundraising, and Admin. My
The reconciliation schedules should just drop-out, as long as you and the auditors started from the same point.
Not a trivial task, but doable. The $5,000 seems high to me, but it's hard to guage without an understanding of the complexity of the organization. Be sure to have your
Francis
Unless your
Send me a copy of your pervious 990 and I will give you a quote. I am not sure if your trained in such preparation but if you file an incomplete return or miss even one page of the required filing you can be hit with a big penalty. According to the IRS an incomplete filing is considered not filed and they hit you with a big non filing penalty. Its not worth the
Also consider that your trial balance accounts do not have to match the 990 accounts. Your company uses QuickBooks, and there's you have the option of signing each trial balance account to a 990 account once you adjust your comment settings to tell QuickBooks that the company files a 990.
To assign a 990 line item to each account in the COA, open the COA and edit the first account in the list. You'll see the field right in there.
Once you have completed this, run special financial statements. Reports>