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Stay Compliant with California Regional Center Requirements

Organizations that provide services through California Regional Centers may be required to obtain an independent CPA review or audit of their financial statements under California Welfare & Institutions Code § 4652.5.

At ELT CPA LLC, we specialize in nonprofit accounting, financial statement services, and compliance engagements. We help Regional Center vendors understand their reporting requirements and complete the necessary financial statement review or audit efficiently and on time.

Whether you operate a residential care home, supported living program, adult day program, or another vendored service, our experienced team can help you meet California’s financial reporting requirements.

Does Your Organization Need a Financial Statement Review or Audit?

California law requires certain Regional Center vendors to obtain an independent CPA engagement based on the amount of funding received from one or more Regional Centers during the State fiscal year.

Current requirements generally include:

Reports must generally be submitted to the vendoring Regional Center within nine months after your fiscal year-end.

Two-Year Exemption Opportunities

Many Regional Center vendors are unaware that California law allows certain providers to receive a two-year exemption from the annual review or audit requirement.

Organizations with satisfactory prior-year reports may qualify for an exemption if they meet the applicable statutory requirements and the Regional Center determines there are no unresolved issues affecting Regional Center services.

If you’re unsure whether your organization qualifies, ELT CPA LLC can help you understand the requirements and prepare the documentation needed for your compliance obligations.

What Is an Independent Financial Statement Review?

A financial statement review provides limited assurance that your financial statements do not require material modifications to conform with Generally Accepted Accounting Principles (GAAP).

During a review engagement, your CPA performs analytical procedures and inquiries of management but does not perform the detailed testing required in an audit.

For many Regional Center vendors, a review satisfies California’s financial reporting requirements while providing professionally prepared financial statements for management, boards, and funding agencies.

When Is an Audit Required?

Organizations receiving $2 million or more in Regional Center funding generally require an independent audit.

An audit provides the highest level of assurance and includes:

• Evaluation of internal controls
• Risk assessment
• Testing of financial transactions
• Confirmation procedures
• Detailed examination of supporting documentation
• Independent auditor’s opinion

Our experienced audit team works to complete engagements efficiently while minimizing disruption to your daily operations.

Why Choose ELT CPA?

Nonprofit and compliance accounting requires specialized experience.

Our professionals understand the financial reporting needs of organizations serving vulnerable populations and can assist with:

• Independent financial statement reviews
• Financial statement audits
• Nonprofit accounting
• Internal control recommendations
• Financial reporting
• Form 990 preparation
• Ongoing accounting support

We work with organizations remotely throughout the United States using secure document sharing and virtual meetings, making the engagement convenient while maintaining high professional standards.

Frequently Asked Questions

Are the requirements based on my organization’s total revenue?

No. The reporting thresholds are based on the amount your organization receives from one or more California Regional Centers during the applicable State fiscal year—not your total organizational revenue.

How often is a review or audit required?

Organizations meeting the applicable funding thresholds generally require an annual review or audit unless they qualify for a statutory exemption. Eligible organizations may receive a two-year exemption after a satisfactory prior-year engagement.

When are reports due?

Required review or audit reports are generally due to the vendoring Regional Center within nine months after the end of your fiscal year.

Can ELT CPA LLC work with California organizations remotely?

Yes. We regularly work with nonprofit organizations and service providers remotely using secure electronic document exchange and virtual meetings, allowing us to efficiently serve clients throughout California.