Non-Profits are required to obtain an audit if the organization receives $750,000 or more in federal funding in a single fiscal year. Accordingly, this includes the audit of the institution’s financial statements and the federal award received. These disclosures can be found in Form SF-SAC (2000 and forward), filed with the Office of Management and Budget.
The Non-Profits Database powered by Audit Analytics contains records back to 2000 and covers all organizations that receive $750,000 or more in federal funding. There are countless ways to look at this market share, including who audits non-profits, search by funding agency,] and total federal expenditures, as well as issues such as going concerns and material weaknesses.
In 2021, there were 3,217 firms which conducted 42,470 non-profit single audits in this specialized market. In this analysis, we look at the audit firm market share of non-profits broken down by sectors such as Education, Public Services, Housing, Government & Region, and Other.
Although the number of firms in this market remained similar to last year, the total number of single audits for non-profits increased by 17% since 2020. As can be seen below, CliftonLarsonAllen continued to lead the market share, auditing double the number of clients as second place, Eide Bailly. Collectively, the top 20 firms constituted 23.2% of all single audits in 2021. This highlights the size and scope of the non-profit market.
Education
Local Education Agencies, Institutions of Higher Education, and Schools
In 2021, Education was the largest defined non-profit sector, representing 26% of all non-profit institutions. In total, there were 11,021 single audits carried out by 1,156 firms in this market. The top 10 firms completed 20.5% of all education non-profits single audits. The leading audit firm, Auditor of State of Ohio audited 435 clients, representing 3.9% of the market share. Eide Bailly and CliftonLarsonAllen were a close second, each auditing 3.4%.
Public Services
Hospitals, Transit Authorities, Utilities, Airports, and Social Services Organizations
The Public Services sector represented 17.4% of all non-profit single audits in 2021. In total, there were 1,720 firms who conducted 7,406 single audits for non-profits in this market. The top 10 firms conducted 15.9% of all Public Service non-profit audits. The leading audit firm, CliftonLarsonAllen audited 260 clients, representing 3.5% of the market share. Meanwhile Wipfli followed second, representing 2% of the market share.
Housing
Housing Authorities & Organizations
In 2021, the Housing sector of non-profit institutions represented 16% of all non-profit single audits. In total, there were 6,794 single audits conducted by 850 different firms for non-profits in this market. The top 11 firms together constituted 27.4% of all housing non-profit audits, the highest percentage for the collective top firms in any of the non-profit sectors. Dauby O’Connor & Zaleski audited 400 clients, representing 5.9% of the market share. Plante & Moran ranked second, with nearly half the number of clients as the lead. Tidwell Group and Hinrichs & Associates each audited 99 clients, subsequently ranking both firms 10th for most Housing non-profit audits.
Government & Region
General Purpose Government and Region-Wide Non-Profits
Overall, this sector is the smallest non-profit sector, representing 10.6% of all non-profit single audits in 2021. In total, 852 firms completed 4,500 single audits for non-profits in this market. Collectively, the top 10 firms completed 21.2% of all Government & Regional single audits in 2021. CliftonLarsonAllen held a firm lead in this sector, conducting 267 audits, representing 5.9% of the market share. Mauldin & Jenkins, the second ranking firm, held less than half the market share of the leading firm.
Other
Other Agencies & Organizations, and Unknown
This sector consolidates several types of non-profit organizations that do not fall within the previously listed sectors. This sector represents 30% of all non-profit institutions in 2021. In total, there were 12,749 single audits issued by 2,294 firms in this market. Out of all the sectors, this market had the most diverse range of audit firms. The top 10 firms conducted only 17.5% of all Other non-profit single audits, despite having the largest client group of classified institutions. CliftonLarsonAllen audited 576 clients, making this the third sector in which they hold the largest market share.
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