Florida State Requirements for Nonprofit Corporations to Conduct an Annual Audit

By Elizabeth Rayne

Florida state law regulates all business transactions within the state, and every organization must be familiar with its financial reporting requirements. All Florida nonprofit organizations must submit a detailed financial report on an annual basis if they receive any funding from the state. Further, scholarship-funding nonprofits and direct-support agencies are required to have an independent audit performed each year.

Nonstate Nonprofit Organizations

The Florida Single Audit Act contains special reporting requirements for nonstate nonprofit organizations that receive financial assistance from the state. A nonprofit organization is any business that is operated for scientific, educational, charitable or similar purposes in the public interest. No part of the income may be distributed to the nonprofit's directors or officers, apart from reasonable compensation for services rendered. "Nonstate entity" refers to any nonprofit organization that received financial assistance from the government.

Nonstate Nonprofit Audit Requirements

Nonstate nonprofits are required to have either a state single audit or a project-specific audit. If the nonprofit expends $500,000 or more of the state's financial assistance, the organization will compete a state single audit. A project-specific audit occurs when the state has financed a specific project of the nonprofit. In either case, the nonprofit must have an independent audit performed by a certified public accountant and submit a detailed financial report to the auditor general. State single audits are more detailed and require more supplemental information, such as a budgetary comparison schedule.

Ready to incorporate your business? Get Started Now

Nonprofit Scholarship-Funding Programs

Nonprofits that provide scholarship funding are required to have an audit completed annually by an independent certified public accountant. If the organization provides scholarships for students who attend any public or private schools in the state, and the organization accepts donations from the public, the audit rule applies. The audit must be submitted to the auditor general and the Department of Education. Additionally, scholarship funding programs must submit quarterly reports to the Department of Education with details about scholarship distributions.

Direct-Support and Citizen-Support Organizations

All Florida direct-support and citizen-support organizations with an annual budget over $100,000 must provide for an annual financial audit of its accounts. Direct-support organizations are those that provide support to government agencies. Citizen-support organizations are created to provide support and funding for Florida state parks. The audit must be completed by an independent certified public accountant, and the report must be submitted to the auditor general. However, organizations that provide support for the Department of Environmental Protection or the Department of Agriculture and Consumer Services with a budget under $300,000 are not required to have an independent audit.

Ready to incorporate your business? Get Started Now
501(c)(3) Auxiliary Restrictions
 

References

Related articles

How to Figure Up Child Support for Arkansas

Arkansas is one of the states that determines child support based on the noncustodial parent's income, without regard to the custodial parent's income. This base support amount may be adjusted up or down to promote the welfare of the children and to compensate for certain expenses of the noncustodial parent.

Non-Profit Fundraising in the State of Florida

The life of a nonprofit hinges on its ability to collect donations. In Florida, most nonprofits are subject to specific reporting and filing requirements. Further, additional reporting and tax implications come into play if the organization has been deemed exempt from federal income taxes. Knowing which organizations are subject to the reporting laws, as well as understanding what activities constitute solicitation, will help ensure the success of your nonprofit.

Rules & Regulations for Non-Profit Associations in Pennsylvania

Forming a nonprofit will enable you to carry forth your charitable mission, while allowing your supporters to make tax-deductible donations to your cause. In Pennsylvania, nonprofit associations are referred to as nonprofit corporations, which are regulated by the state's Nonprofit Corporation Law. Before officially forming the organization under state law, it is important to understand the general requirements for nonprofits, and to have a board of directors in place to manage the corporation.

LLCs, Corporations, Patents, Attorney Help

Related articles

Rules for Fundraisers for Non-Profit Organizations in Florida

Nonprofit organizations carry out different activities to raise funds for their individual charitable or social ...

California Non Profit Corporation Filing Requirements

The filing requirements for a nonprofit corporation in California starts with filing the appropriate paperwork to form ...

Is Child Support Mandatory in the State of Texas?

The obligation to financially support your child does not end after divorce. In that sense, both parents are ...

Ohio Child Support Laws for Public Assistance

Ohio child support laws are meant to ensure that both parents contribute to a child's financial needs after divorce. ...

Browse by category
Ready to Begin? GET STARTED