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Board adopts new MOU and sets $30,000 audit/review threshold for recipients of county funds
Summary
Staff presented a memorandum of understanding for recipients of county funds and recommended a tiered approach to financial oversight; the board approved the MOU and set an audit/review threshold of $30,000 (audit or review by a CPA) to balance oversight and cost burdens for nonprofits.
The Washington County Board of Supervisors adopted a memorandum of understanding (MOU) that defines terms and conditions for organizations receiving county funding and set a tiered financial‑oversight approach, including an audit/review threshold of $30,000.
Finance staff presented a draft MOU that would require recipients receiving less than $15,000 to sign the terms and conditions; recipients above that threshold would need to submit a Form 990 or financial statement. For recipients at or above the established audit threshold, a CPA-conducted audit or review would be required. "An audit typically costs more because an audit is an actual opinion on the financial statements; a review is less expensive," Ms. Sturgill said during the presentation.
Board members discussed the burden audits can impose on smaller nonprofits and agreed the $30,000 threshold balances the need for oversight with cost concerns. The board approved the MOU with the audit/review threshold language and the ability for the board to request an audit or review below the threshold if concerns arise.
