Nonprofit audit & assurance services.

Independent audit and assurance services designed for nonprofits, from financial statement audits and reviews to agreed-upon procedures and Uniform Guidance Single Audits.

Let’s Connect

18+

years of nonprofit-exclusive practice

500+

nonprofit clients served

60+

nonprofit professionals

95%+

client retention rate

What audit & assurance covers.

Han Group’s audit and assurance practice is built specifically for nonprofits, with services ranging from financial statement audits and reviews to federal compliance, agreed-upon procedures, and other specialized engagements. The right approach depends on your organization’s funding sources, regulatory requirements, reporting needs, and the level of assurance your stakeholders require.

Financial statement audits.

Financial statement audits.

Because we work exclusively with nonprofits, our teams understand the accounting issues that frequently shape these engagements, including donor restrictions, grants and contracts, contributions and pledges, functional expense allocations, investments and endowments, leases, and complex organizational structures.

Financial Audits

Federal compliance & Single Audits.

For organizations expending $1 million or more in federal awards per fiscal year, the Single Audit under Uniform Guidance is a distinct engagement with its own scope, deliverables, and compliance testing requirements. Our practice covers Single Audits, compliance audits for major federal programs, testing of internal controls over federal awards, and audit procedures over the Schedule of Expenditures of Federal Awards (SEFA).

Grant & Compliance Audits

Agreed-upon procedures & specialized engagements.

Sometimes an organization, funder, grantor, or other stakeholder needs something more targeted than an audit of the financial statements. Agreed-upon procedures engagements allow specifically defined procedures to be performed over particular financial information, transactions, programs, or other subject matter, with the procedures and resulting findings reported to the appropriate parties. Han Group performs agreed-upon procedures, including program-focused engagements where the procedures and reporting are designed around the particular information the engaging parties need addressed. Our Audit & Assurance practice also includes employee benefit plan audits and internal audits.

Reviews & compilations.

Han Group performs financial statement reviews and compilations for nonprofits whose boards, lenders, funders, or other stakeholders require financial statements accompanied by a CPA’s report but do not require an audit. A review provides a lower level of assurance than an audit, while a compilation does not provide assurance. We help organizations understand the differences and select the appropriate service based on their reporting requirements and stakeholder expectations.

The weight an audit carries.

Financial reports serve several audiences at once. Boards use them to exercise oversight. Funders and grantors use them to evaluate accountability. Regulators use them to assess compliance. Management relies on credible financial information to lead the organization. Han Group approaches every audit and assurance engagement with that responsibility in mind. Financial credibility is the entire point.

Aligned before fieldwork.

The audit conversation starts well before fieldwork. We review what has changed in the organization, where risk areas have shifted, and what the engagement needs to address this year. Starting from shared understanding means fewer course corrections once testing is underway.

Effort where it matters.

Not every account balance carries the same weight. We concentrate audit effort on the areas of genuine financial consequence and the judgment calls that affect how the organization is understood by its stakeholders. Time spent on immaterial items is time not spent where it matters.

Nonprofit revenue expertise.

Nonprofit revenue is rarely one-size-fits-all. Contributions, grants, membership dues, sponsorships, conferences, special events, and other revenue streams can each present different accounting considerations. Our nonprofit focus means we know where to look and what matters.

Delivered for the boardroom.

Audit work is performed with its eventual audience in mind: the board members who review the opinion, the audit committee asking questions, and the funders whose continued support depends on what the audit communicates. The deliverable serves those audiences, not just the technical standards.

No surprises at the finish line.

We discuss potential issues as they arise, giving management time to understand, respond, and begin addressing them before the audit is complete.

Finding the right level of service.

An audit is not always the answer. A nonprofit may need an audit because of a statutory, grant, contractual, or governance requirement; another may need a review or compilation; and another may need agreed-upon procedures focused on a specific program, expenditure category, or reporting requirement. We help organizations understand what is being requested, determine the appropriate engagement, and establish a scope that meets the applicable reporting need without unnecessarily expanding the work.

Financial statement audit.

Triggered by board policy, funder requirements, or state law when no federal award threshold is involved. The deliverable is an independent audit opinion on your organization’s financial statements prepared under GAAP. This is the most common nonprofit audit type and the starting point for organizations that have not previously been audited or are transitioning auditors.

Yellow Book audit.

Required when Government Auditing Standards apply, typically because the organization receives state or local government funding that specifies this standard. The deliverable includes the financial statement audit opinion plus additional compliance reporting. This audit type adds a testing layer beyond the standard financial statement audit and is often a funder requirement rather than an organizational choice.

Single Audit (Uniform Guidance).

Required when an organization expends $1 million or more in federal awards in a fiscal year. The deliverable includes the audit opinion, a Schedule of Expenditures of Federal Awards (SEFA), and compliance testing on major federal programs as determined by a risk-based selection process. This is the most complex nonprofit audit type and the engagement where nonprofit-exclusive depth matters most.

The right service. The right scope.

A partner can help determine the appropriate engagement based on your requirements and stakeholder needs.

Let’s Connect

From scoping to board presentation.

01

Engagement type determination.

We determine which audit or assurance engagement your organization actually needs based on funding sources, federal award thresholds, and stakeholder requirements,
before anything else is scheduled.

02

Engagement scoping.

We define scope, timeline, and deliverables together, with attention to what changed since the prior year and where risk areas have shifted.

03

Fieldwork planning.

We build a fieldwork timeline aligned to your board and funder reporting deadlines, sequenced to avoid disrupting your organization’s operating rhythm.

04

Fieldwork & testing.

We conduct the testing appropriate to your engagement and communicate potential issues as they arise, giving management an opportunity to provide context and additional
information before the audit is finalized.

05

Report delivery & board presentation.

We deliver draft reports to management, reviewed for clarity, then present the results to your board or audit committee, translating technical language into what the board needs
to know and act on.

Built for the mission.

Han Group LLC was founded on a deliberate choice: serve nonprofits exclusively. Eighteen years later, that choice is the whole practice, led by eight partners. Our work is technical. Our approach is human.

About Han Group

Explore audit & assurance in depth.

Learn more about our audit and assurance services and find the right approach for your organization.

Financial audits.

Annual financial statement audits, first-year audits, auditor transitions, consolidated audits, and audits of organizations with complex financial and reporting structures.

Grant & compliance audits.

Single Audits under Uniform Guidance, federal program compliance testing, grant and program-specific audits, and related compliance reporting.

The latest from Han Group.

Published perspective and upcoming programming for nonprofit finance leaders.

View All Insights
See All Articles

Our offices.

Han Group serves nonprofits nationwide. Four offices anchor our practice: Washington DC, McLean VA, Stafford VA, and New York NY.

Washington, D.C.

1020 19th Street NW, Suite 800

View Our Washington D.C. Office

McLean, VA.

1750 Tysons Blvd, Suite 1500

View Our McLean Office

New York, NY.

One Liberty Plaza, 165 Broadway, 23rd Floor

View Our New York Office

Stafford, VA.

800 Corporate Drive, 3rd Floor

Your mission deserves an auditor built for the sector.

Every engagement here is scoped before fieldwork rather than during it. A partner can confirm which audit or assurance service applies to your organization and what this year’s engagement should address.

Let’s Connect
Submit an RFP

Frequently asked questions.

All three are independent examinations, but they differ in scope and trigger. A financial statement audit tests whether the statements are fairly presented under GAAP. A Yellow Book audit adds compliance reporting under Government Auditing Standards. A Single Audit, triggered at $1 million in federal awards expended, adds compliance testing on major federal programs and a Schedule of Expenditures of Federal Awards.

The type of audit depends on your funding and the requirements that come with it. State laws, boards, funders, grant agreements, and government awards can each carry different audit requirements. Organizations expending $1 million or more in federal awards during a fiscal year are generally subject to Uniform Guidance audit requirements. We identify the applicable requirements before scoping the engagement.

These represent three levels of assurance. An audit provides the highest level: an independent opinion on whether financial statements are fairly presented. A review provides limited assurance through inquiry and analytical procedures. A compilation presents financial data in statement format with no assurance. Funders or lenders requiring an audit will not accept a review or compilation as a substitute.

The board should expect a planning conversation before fieldwork begins, periodic updates during testing, findings surfaced and discussed in real time rather than at the end, and a presentation of results to the board or audit committee that translates the technical findings into what the organization needs to know and act on.

A generalist firm encounters nonprofit-specific requirements occasionally: donor-restriction tracking, FASB ASC 958 net asset classification, functional expense allocation, Uniform Guidance compliance. A firm that works exclusively with nonprofits encounters them in every engagement. That difference in exposure translates directly into audit efficiency and the depth of judgment applied to nonprofit-specific accounting questions.

Timelines vary by audit type and organizational complexity. A standard financial statement audit for a mid-sized nonprofit typically runs six to ten weeks from planning through report delivery. Single Audits run longer due to the additional compliance testing. We set the fieldwork schedule against your board and funder reporting deadlines, working backward from the dates you have already committed to.