Having a 3rd party complete an Audit, Review, AUP, Compilation, etc. is one thing. Having someone completely separate take that information and present it to the public is completely different, and that’s the benefit. The organization can take the report and present it, but having a 3rd party verify and present it brings a completely different level of trust and confirmation.

You get a 3rd party (dime accounting) that provides the necessary standards that need tested. These standards have been proven, specifically for churches and non-profits, to mitigate fraud and increase financial stewardship. We then take the report provided by the auditor and present it, along with additional information about your organization, on our website, verifying by us that you’ve completed and are following the standards.

First, fill out the form at dimeaccounting.com/accreditation We then meet with you and provide you all of the information you need to prepare for your accreditation. You complete those steps, which include an audit or agreed upon procedures (AUP) and a questionnaire and submit them to us. We review and certify or make recommendations. Once certified, we provide you with an accreditation seal to put on your website and other marketing materials as you see fit. You can then link donors, staff, etc. to your custom page on the dime accounting website.

Well, you don’t NEED it, but it’s really helpful. The goal is to provide TRUST to your staff, donors, members, and the outside world through an additional layer of ACCOUNTABILITY. This process tells the world that you’ve been through a thorough review of your financials and processes and a CPA has verified that how you operate (financially) fits within the best practices for an organization like yours. By dime accounting presenting that on your behalf, we’ve seen more committed and engaged staff and members and we literally see donors increase giving because of the additional level of confidence they find.

An Agreed Upon Procedures (AUP) is the technical name for the process of hiring an auditor to perform a very specific set of tests on your financials and / or financial processes. While there are hundreds of different tests that can be performed, we’ve narrowed this down to 7 - 10 of the most important for a church or non-profit to consider. It’s basically a mini-audit, that only focuses on what we believe are the most important aspects for financial accountability.

Great question! Whether you’re completing an audit, review, compilation or AUP, they are all a thorough review of the organization’s financial statements and financial processes.

An audit is “the thorough review of a company’s financial statements to ensure the financial records are fair and accurate”. In short, this process reviews virtually everything and every area of potential fraud in an organization. It also tests specific financial transactions to ensure that processes are being followed and transactions are recorded correctly. The audit report is then provided, which is really the auditor’s opinion on the organizations financial performance and compliance with Generally Accepted Accounting Principles (GAAP). There’s also a GAAP based financial report included and a “management letter” explaining the auditor’s findings.

A review is very similar to an audit, and the process is nearly the same. The main difference between a review and an audit is that a review will not provide an auditor’s opinion.

An Agreed Upon Procedures (AUP) follows exactly the same process as an audit, but only reviews the processes and financial aspects that the auditor and company agree to. This is particularly valuable to organizations that don’t have a requirement for an audit or for organizations (such as churches) that don’t necessarily have the same level of vulnerabilities that other for-profit companies might have (like inventory).

A Compilation is essentially the same financial report that’s produced in an audit. A compilation doesn’t review or test processes, but it does produce GAAP financial statements.

More churches and organizations should ask this question! Many banks will require a non-profit or church to have an annual audit in order for them to loan you money. If that’s the case, buckle up because you need an audit. If there’s no audit requirement, we believe that an AUP + Compilation is best. This gives you exactly what you need to ensure (both internally and externally) that you’re functioning within the best practices, and it produces GAAP financial statements. It’s basically the best of both worlds and it’s about $10,000 less expensive than an audit. If you don’t really have anyone looking for or asking for GAAP financials, then an AUP alone is perfectly sufficient. We generally do not recommend a “Review” to anyone. A review is about $5,000 less expensive than an Audit, but the benefit is no greater than an AUP. So, either pay the money and do a full audit or save the money and get an AUP done.

8. This is pretty simple. All auditors are required to remain “Independent” which means, they can’t really negotiate price much because that would show a lack of independence. That said, the pricing is generally pretty standard depending on the size and complexity of your organization.

1. Audit - $18,000 - $25,000 or more depending on the size and complexity of your organization. First year audits are typically 10% - 20% more expensive than subsequent years.

2. Review - $15,000 - $18,000

3. AUP - $4,500 - $6,500 but this depends on what and how many things are being tested. For what you need in order to be Dime Accredited, this should cost around $4,500 - $6,500.

4. Compilation - $3,000 or more depending on the size of your organization.

As previously mentioned, auditors are required to be “independent”. That means that Dime Accounting is unable to be your auditor. Furthermore, we’re not even allowed to receive commissions or any kind of financial or relational benefits from the auditors. Again, auditors must remain completely independent. That being said, we are allowed to refer or recommend specific auditors that we believe work well with churches and non-profits. Consider using Credex for your Audit, AUP or Compilation.