Charities and Non-Profits

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From the grant agreement to net asset disclosures — done with the support attached.

Acme Foundation grant agreement
FY26 award · $250,000
Analyzed
Section 3 — Use of Funds

Funds awarded under this agreement may be used only for the youth literacy program described in Exhibit A.

Grantee shall contribute matching funds on a 1:1 basis over the grant period.

Quarterly progress reports are due within 30 days of each quarter end.

Extracted terms
Purpose restriction
Youth literacy only
Matching fund
1:1, full term
Reporting
Quarterly · 30 days
Tie to disbursements
Test allocations
Review disclosures

Grants have restrictions in three different paragraphs. Donor letters don’t define their terms. The procedures aren’t the hard part — the citations are.

01·The Agreement·Co-Audit

Read the agreements. Keep the citations.

You read the grant, the donor letters, the board minutes. Every answer cites the paragraph it came from.

See Co-Audit
Co-Audit
Acme Foundation grant · FY26
What restrictions are in this grant?
Funds are restricted to a youth literacy program. Matching contribution required on a 1:1 basis over the grant period.
acme_grant.pdf· §3, page 4
Ask Co-Audit anything…
02·The Spend·Match Agent

Every dollar walks back to its support.

Match Agent ties grant-funded disbursements to invoices, payroll allocations, and program records. Missing support stays open.

See Match Agent
Restricted disbursements
Acme Foundation grant — youth literacy
Matching
Disbursements
DIS-018
Vendor — Literacy Curriculum
$8,400
Matched
DIS-022
Payroll — Program staff
$22,150
Review
DIS-029
Travel — Site visit
$1,820
Open
Candidate support
invoice_2189.pdf
Vendor match, period in scope
Likely
payroll_q2.xlsx
Allocation needs review
Review
No support found in scoped set
Missing
03·The Allocation·Test Agent

Functional expenses that hold up.

Program, management, and fundraising splits get tested per row. The methodology, test, and tickmark land in the workpaper together.

See Test Agent
Functional expense allocation
Payroll allocation testing — Q2
Testing
ID
Employee
Program
Mgmt
Fund.
Status
EMP-104
A. Chen
80%
15%
5%
Pass
EMP-117
B. Ortiz
70%
20%
10%
Pass
EMP-123
C. Park
95%
5%
0%
Review
EMP-128
D. Singh
60%
25%
15%
Open
3 attributes checked · 4 of 38 visibleWorkpaper
04·The Statements·Financial Statement Review

Net assets release cleanly.

The Statement of Activities foots. Endowment, liquidity, and in-kind disclosures get flagged on the lines that moved.

See Financial Statement Review
Statement of Activities — FY26
Net asset presentation
In review
Without restrictionsWith restrictions
Contributions$1,820$2,640
Grants$0$1,200
Program revenue$945$0
Released from restriction$1,150($1,150)
Change in net assets$1,495$2,690
Release of restriction does not net to zero across columns — flagged for review.

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