Many DDS vendors believe they do not need a 2011 Audit or Review. The California State Assembly Bill clearly requires all DDS vendors whose revenues exceed $250,000 need a Reviewed Financial Statement from a Certified Public Accountant. DDS Vendors whose revenues exceed $500,000 in 2011 require a full audit. This is not based on partial year nor your orientation (fiscal or calendar year) This is California State Law and can not be waived by any DDS Regional Center. As a CPA Audit Firm we are very careful to be certain a vendor actually needs an audit. We look at vendor's service codes and revenues and rates. We can not complete a 2012 audit without first checking for a need for a 2011 audit. If 2011 revenues call for an audit, the 2011 audit must be completed before we can issue a passing 2012 audit. I am happy to discuss this requirement more with any DDS vendor as I know this has been confusing in the past. … [Read more...] about DDS 2011 Audit and Review Requirements
Archives for May 2013
DDS Audits in California
We are a bit farther along in the DDS Audit Process. One of the most frequent questions is about the 15% rule for DDS Audits. The rule is complex, but also it does apply. A little study of the actual California State Senate Bill sheds more light on the subject. There are actually two parts to the bill and the later clarifies which funds are affected and not affected by the 15% overhead. The variable is the vendor's classification and rate codes. It is easier to address each individual case rather than describe each scenario on my blog. Another common hurdle is vendor record keeping. Many smaller entities have kept manual records. These can range from Excel Spread sheets, to a notebook with entries to a box full of receipts and bills. AICPA Audit Standards require records to be in a standardized format. This allows the audit firm to be audited. All California CPA firms who perform audits and reviews are themselves audited. Acceptable record keeping would be software … [Read more...] about DDS Audits in California
