Nonprofit Audits in Hawaii

Nonprofit Audits for Hawaii Organizations

Linked Accounting provides audit services designed specifically for Hawaii's nonprofit sector. Our expertise helps ensure your organization meets all state and federal standards, maintains compliance, and builds transparency and confidence with donors and stakeholders.

• State and Federal Compliance: Comprehensive audits to ensure compliance with Hawaii's nonprofit tax codes and IRS regulations, safeguarding your tax-exempt status.
• Financial Transparency: Detailed financial reporting that builds donor confidence and enhances grant application success.
• Board Governance Support: Guidance for board members to understand their financial oversight responsibilities and improve governance.
• Grant Compliance: Ensure accurate financial reporting to meet grant requirements and support future funding opportunities.

Nonprofits operating in Hawaii must comply with federal IRS regulations and state-specific tax laws. Organizations structured under HRS Chapter 414D (Hawaii Nonprofit Corporations Act) are required to maintain accurate financial records and ensure proper fund management. Our CPA team helps nonprofits navigate these regulations, ensuring full compliance while preserving tax-exempt status.

Key compliance areas include:

• Form 990 Preparation & Review, Ensuring accurate disclosures and compliance with Hawaii's nonprofit reporting laws.
• Charitable Solicitation Registration (HRS §467B-6.5), Required for organizations soliciting public donations in Hawaii.
• State Excise Tax Considerations, Evaluating whether your nonprofit's activities trigger Hawaii General Excise Tax (GET) obligations.

Audit & Financial Reporting for Grant Compliance

Nonprofits receiving state or federal grant funding must undergo annual financial audits to comply with grant conditions. A Single Audit is required under OMB Uniform Guidance (2 CFR Part 200) for organizations receiving federal grants exceeding $750,000. Our audit process ensures compliance with these requirements while helping organizations strengthen financial oversight.We provide:

• Grant Expenditure Testing, Verifying that funds are allocated in accordance with grant terms.
• Internal Control Assessments, Evaluating financial processes to prevent mismanagement of funds.
• Financial Statement Audits, Meeting donor, lender, and regulator expectations with independently verified financials.

Fraud Prevention & Internal Controls

Nonprofits often manage significant donor contributions and grant funds, making strong internal controls essential. Our CPAs assist organizations in implementing fraud prevention measures, improving financial accountability, and safeguarding assets.Best practices include:

• Segregation of Duties, Preventing financial mismanagement by clearly defining roles and responsibilities.
• Board Oversight & Training, Educating board members on best practices for financial governance and oversight.
• Cash Flow & Fund Tracking, Establishing procedures to track restricted and unrestricted funds accurately.

Board Governance & Financial Training

Nonprofit board members are responsible for financial oversight but may lack accounting expertise. Our team provides customized training sessions for board members and executive leadership, ensuring they understand their fiduciary responsibilities and financial reporting obligations.

Why This Matters:

• Stronger Donor Confidence, Transparent financial reporting improves fundraising efforts.
• Regulatory Compliance, Avoid penalties related to inaccurate or incomplete reporting.
• Financial Sustainability, Sound financial management helps nonprofits achieve long-term stability.

Why Choose Linked Accounting for Nonprofit Audits in Hawaii?

Linked Accounting combines deep expertise in nonprofit accounting with knowledge of Hawaii’s regulatory landscape. Whether your organization operates in Honolulu, Maui, or Kauai, our CPA team ensures your nonprofit meets compliance requirements while optimizing financial transparency.