Example 1: Unmodified GAAP: FASB ASC 958 (AICPA NFP Guide Chapter 14.09)

INDEPENDENT AUDITOR’S REPORT

[ENTITY NAME]

[COUNTY NAME]

[STREET ADDRESS]

[CITY], Ohio [ZIP CODE]

To the [GOVERNING BODY]:

Report on the Financial Statements

We have audited the accompanying financial statements of the [ENTITY NAME], [COUNTY NAME], Ohio (the Entity), (a not-for-profit corporation), which comprise the statement of financial position as of [FYE DATE], the related statements of activities and cash flows for the year(s) then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for preparing and fairly presenting these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the Entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the Entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Entity, as of [FYE DATE], and the changes in its net assets and its cash flows for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated [REPORT DATE], on our consideration of the Entity’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. While we did not opine on the internal control over financial reporting or on compliance, that report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Entity’s internal control over financial reporting and compliance.

[Auditor Signature]

[City, State]

[REPORT DATE]

Example 2: Unmodified Report on Modified Cash Basis (OCBOA) Statements

Special Purpose Framework Financial Statement Audits (AU-C 800)

INDEPENDENT AUDITOR’S REPORT

[ENTITY NAME]

[COUNTY NAME]

[STREET ADDRESS]

[CITY], Ohio [ZIP CODE]

To the [GOVERNING BODY]:

Report on the Financial Statements

We have audited the accompanying financial statements of the [ENTITY NAME], [COUNTY NAME], Ohio3 (the Entity), (a not-for-profit corporation), which comprise the statement of financial position as of [FYE DATE], the related statements of activities for the year then ended,4 and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for preparing and fairly presenting these financial statements in accordance with the modified cash accounting basis Note X describes. This responsibility includes determining that the modified cash accounting basis is acceptable for the circumstances. Management is also responsible for designing, implementing and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the Entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the Entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective modified cash financial position of the Entity, as of [FYE DATE], and the respective changes in modified cash financial position thereof for the year then ended in accordance with the accounting basis described in Note X.

6Accounting Basis

We draw attention to Note X of the financial statements, which describes the accounting basis, which differs from generally accepted accounting principles. We did not modify our opinion regarding this matter.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated [REPORT DATE], on our consideration of the Entity’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. While we did not opine on the internal control over financial reporting or on compliance, that report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Entity’s internal control over financial reporting and compliance.

[Auditor Signature]

[City, State]

[REPORT DATE]

Note: Do not use the “restricted use” paragraph with this opinion.

Revised October 2020 – Updated for COVID-19 Guidance (endnote 7), added county name to header, simplified language in opinion paragraph.

This shell is for non-governmental not-for-profit entities. If the auditee is a governmental not for	profit then auditors should use the Opinion GAAP A01-A17 examples.

Organizations are not considered nongovernmental if:

• Officers are elected by popular vote,

• A controlling majority of the organizations officers are appointed by elected officials

• A government could unilaterally dissolve the organization and retain the remaining net assets

• The organization can levy taxes (this includes being able to enact and enforce the levy)

• The organization can directly issue tax-exempt debt

Appendix A ¶ A-1 in SLG ¶ 16.103 describes conditions that may require modifying this report,	such as when the financial statements include information from a prior period. The AICPA NFP	Guide does not include specific guidance regarding this matter. Therefore, auditors should follow	the SLG guidance noted.

As discussed in SLG 16.58, insert “, a component unit of [PRIMARY GOVERNMENT],” if	applicable. The AICPA NFP Guide does not include specific guidance regarding this matter.	Therefore, auditors should follow the SLG guidance noted.

Each of the statements presented, which may include a statement of functional expenses, should	be identified in the introductory paragraph. Modify the names of the statements as necessary.

If supplementary information is included in the report, refer to the guidance in the Opinion GAAP A01 Unmodified file and add the appropriate paragraph.

An emphasis of matter paragraph may be included here. For instance, at an Association Library when there are private moneys that are excluded from the presentation/audit, a disclosure of the matter and an EOM paragraph is appropriate.

COVID-19 Guidance:

Additional language regarding COVID-19 and a related draft disclosure, draft emphasis-of-matter paragraph, and draft GAGAS opening paragraph sentence can be found here.

This shell is for non-governmental not for profit entities reporting on an OCBOA (AU-C 800) framework. If the auditee is a governmental not for profit then auditors should use the OCBOA opinion example included in the Opinion AOS OCBOA basis file.

If supplementary information is included in the report, refer to the guidance in the Opinion AOS OCBOA basis file and add the appropriate paragraph.