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the c3f financial audit
A nonprofit audit is one of the most important tools an organization has to demonstrate integrity, strengthen operations, and build long-term trust. For community members and donors, it’s a signal that charitable dollars are being used wisely. For nonprofits, it’s a chance to confirm what’s working, and improve what isn’t.
What Is a Nonprofit Audit?
Think of a nonprofit audit like a routine health exam, but for finances and processes. An independent certified public accountant (CPA) takes a careful look at the organization’s financial statements and the systems behind them. Their job is to answer a few key questions:
- Are the financial reports accurate?
Do the numbers reflect what really happened - money received, money spent, and what’s left? - Are the processes sound?
Are there sensible steps for approving expenses, tracking donations, and protecting against mistakes or misuse? - Is the organization following the rules?
This includes tax rules, grant requirements, and any restrictions set by donors (e.g., funds earmarked for a specific program).
When they’re done, the auditor issues a report. If everything checks out, the report says the financial statements are a fair and accurate picture of the organization’s finances. If there are concerns, the auditor explains them and suggests improvements.
Our Process Here at C3F.
At the start of each year, I begin preparing for our annual audit in partnership with Hanley CPA, the independent firm that conducts our audit. Their team spends several days onsite in February, examining our financial records, asking questions, and gaining a clear understanding of how our systems operate. In July, we receive the finalized audit report, and the auditors present the information to our Finance Committee. This report is then available for anyone in the community to review. Along with our annual Form 990 and other key documents, the audit is posted on our website to ensure full transparency into our financial stewardship. I am always happy to answer any questions you may have about these reports and can be reached by email at mgreer@c3f.org. We are honored to be the responsible stewards of your charitable gifts.