Protecting Land, Perpetuating Trust

To be fair, Ken Grudens, executive director of the nonprofit Indian River Land Trust (IRLT) in Vero Beach, Florida, was perfectly happy with the firm providing IRLT’s annual independent audits — that is, until the auditor Grudens had long entrusted IRLT’s books to, who year after year had reliably shepherded the IRLT through the arduous independent audit process, retired.

Grudens and the IRLT team, with 1,200 acres of protected land and shoreline to manage and many more to save, had little time to waste. Like many 501(c)3 nonprofits, IRLT must undergo an independent audit each year. The process isn’t quick, and it certainly isn’t one-size-fits-all. 

“We needed to find somebody who understood nonprofits. You know, if you look around town here, there’s really a very small handful of entities that know nonprofit work. And that was very important to us,” he says.

As it should be. Nonprofits, after all, operate under an entirely different set of circumstances than for-profit organizations do. And for numerous reasons — among them, financial transparency, donor confidence, and federal (and often even state) guidelines — nonprofits must abide by a unique set of rules and restrictions that are not only complex, but often changing.  

“If an auditor doesn’t understand those very well,” says Grudens, “it could cause problems in reporting. Understanding how things are reported, tracking them accurately, and being able to reconcile that each year — that’s critical.”  

Obviously, no organization — or auditor — wants to risk misrepresenting any information, a mistake that could compromise the trust of its donors and its status as a tax-exempt organization. But perhaps less obvious is the extraneous time and expense that a nonprofit also risks when working with an auditor who lacks nonprofit experience.  

Even if no omissions or mistakes are made, a less nonprofit-savvy auditor will inevitably require more time to investigate and complete the report correctly, driving up the costs of the audit.  An experienced nonprofit auditor, on the other hand, knows what to look for, and where.  

Another perk of a nonprofit-savvy auditor: He or she will have a proven game plan to guide the organization through its contribution to the audit process — the unavoidable and potentially onerous prep work — clearly and as painlessly as possible.  

Having been a part of many independent audits in his nearly 20 years with IRLT, Grudens had a sizeable checklist of must-haves for the firm and auditor that would replace the longtime firm and fill the shoes of his retiring auditor. With high hopes and even higher expectations, IRLT sent out a Request for Proposals.  

The result: “Hands down, Rehmann had the best level of experience and understanding of nonprofits.”  

But beyond its extensive nonprofit experience, Rehmann, which has an office near IRLT in Vero Beach (plus 15 others around Florida, Ohio, and Michigan) brought another benefit to IRLT’s table, says Grudens.

“We liked the fact that Rehmann was a local group of people backed by a national team that can help answer the difficult questions,” he says. “I think that’s important because we all have limited knowledge. And if it’s only a local firm, then you could end up at a dead end, potentially.” 

In the six years since Rehmann began conducting IRLT’s independent annual audits, Grudens says his Rehmann auditor has shown that he’s “never afraid” to raise an issue or a question if there’s a chance it might provide something that could help IRLT or its donors — even if that issue is outside the auditor’s expertise. The Rehmann auditor simply reaches out to his vast network of 900+ Rehmann colleagues, runs said issue by one or two with the specialized expertise he seeks, and delivers the answer he, the nonprofit — or its all-important donors — need.  

As with most any nonprofit, donors are the lifeblood of IRLT. Grudens says their generosity is a key reason the nonprofit has been so successful in its mission, and Rehmann plays an integral part. Whether it’s responsiveness to donor gifts and tax questions; delivering the right information in an annual report; or putting a reliable checks-and-balances system in place to prevent fraud, Grudens says systems and efficiencies that allow IRLT to continually connect with the donors and maintain their trust are critical to the nonprofit’s ability to fulfill its mission.

“It’s transparency, and it’s timeliness. I think that seems so obvious when I say it,” Grudens allows. “But nonprofits aren’t always good. And some don’t follow the right processes and procedures consistently over time. Of course, the bigger they get, the more gifts they receive, the harder it is to keep up.” 

Grudens says Rehmann not only helps IRLT keep up; it helps IRLT thrive.  

“Rehmann isn’t just looking at the numbers. They’re looking at the systems. They’re looking at all the things that matter. That’s the difference,” Grudens says. “And I think that’s a big difference.”