To deter fraud, embezzlement and other Madoff-type activity, private foundations should take a proactive approach to security. Audits are the best way to protect your assets and ensure the integrity of your foundation. Instances when an audit should be performed include:
- When an entity gets passed on to the next generation.
- Periodically to ensure the foundation is being governed properly in order to retain its tax-exempt status.
- When required by law. Some states (not all) do require an audit once assets reach a certain level.
At DGC, our private foundation audits focus on issues related to fiduciary responsibility, oversight, and governance. A typical audit involves DGC, acting as an independent advisor, to evaluate the following:
- IRS compliance
- Testing of internal controls
- Governance (board education)
- Financial report based on a collection of assets
For more details about private foundation audits CLICK HERE.