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As charitable organizations grow, additional financial reporting responsibilities often follow. In West Virginia, an important compliance milestone occurs when a charitable organization reports $200,000 or more in total revenue during its fiscal year.

Under the West Virginia Charitable Organizations Act, charitable organizations reporting $200,000 or more in total revenue generally must submit financial statements that have been reviewed or audited by an independent Certified Public Accountant (CPA) as part of their annual registration with the West Virginia Secretary of State. Unlike many states, West Virginia does not establish a higher revenue threshold where an audit becomes mandatory solely because revenue increases. A CPA review or audit generally satisfies the statutory requirement. (West Virginia Code § 29-19-6).

Understanding these requirements before your annual filing deadline can help your organization remain compliant while demonstrating financial transparency to donors, grantmakers, board members, and the public.

Whether your nonprofit serves Charleston, Huntington, Morgantown, Parkersburg, Wheeling, Martinsburg, Beckley, or communities throughout West Virginia, planning ahead for your financial reporting engagement can simplify your annual filing and help avoid unnecessary delays.

West Virginia Financial Review Requirements at a Glance

Quick Answer

If your West Virginia charitable organization reports $200,000 or more in total revenue, West Virginia generally requires your annual registration to include financial statements reviewed or audited by an independent Certified Public Accountant (CPA). Unlike many other states, West Virginia does not establish a separate revenue threshold that automatically requires an audit. A CPA review or audit generally satisfies the reporting requirement. (West Virginia Code § 29-19-6).

When Is a Financial Review Required in West Virginia?

West Virginia bases its charitable reporting requirements on an organization’s total revenue, rather than charitable contributions.

Once total revenue reaches $200,000, qualifying charitable organizations generally must submit financial statements that have been reviewed or audited by an independent CPA as part of their annual registration filing (West Virginia Code § 29-19-6).

The West Virginia Secretary of State – Charitable Organizations Division administers these reporting requirements and reviews annual registration filings submitted by charitable organizations soliciting contributions within the state. (West Virginia Secretary of State – Charitable Organizations Division).

What Is a Financial Statement Review?

A financial statement review is an accounting service performed by an independent Certified Public Accountant in accordance with the Statements on Standards for Accounting and Review Services (SSARS) issued by the American Institute of Certified Public Accountants (AICPA). (AICPA Preparation, Compilation, and Review Standards).

During a review engagement, the CPA performs analytical procedures and inquiries of management to determine whether any material modifications should be made to the organization’s financial statements. Unlike an audit, a review does not include extensive testing of transactions or internal controls and provides limited assurance rather than reasonable assurance.

For many West Virginia charitable organizations, a financial review satisfies state reporting requirements while improving financial transparency and increasing confidence among donors, grantmakers, and governing boards.

West Virginia Law at a Glance

West Virginia differs from many states because its financial reporting requirements are based on total revenue, not charitable contributions. It also allows organizations meeting the statutory threshold to satisfy the filing requirement with either a CPA review or a CPA audit, rather than requiring an audit after reaching a higher revenue level. This flexibility allows nonprofit organizations to choose the engagement that best fits their circumstances while remaining compliant with state law.

Financial Review vs. Financial Audit

Although both engagements are performed by independent Certified Public Accountants, they provide different levels of assurance.

Financial Review

A financial review generally includes:

• Analytical procedures
• Inquiries of management
• Limited assurance
• Lower overall cost than an audit
• Accepted for organizations reporting $200,000 or more in total revenue (West Virginia Code § 29-19-6)

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance
• May also be submitted in place of a review to satisfy West Virginia’s reporting requirement (West Virginia Code § 29-19-6)

Preparing for Your Financial Review

Maintaining organized financial records throughout the year can significantly streamline your review engagement.

Your CPA will commonly request:

• Statement of Financial Position
• Statement of Activities
• General ledger
• Trial balance
• Bank reconciliations
• Revenue schedules
• Grant documentation
• Board meeting minutes
• Investment schedules
• Significant contracts
• IRS Form 990

Preparing these records before the engagement begins can reduce delays and help ensure your annual registration is completed on time.

Benefits Beyond Compliance

Although West Virginia requires reviewed or audited financial statements once the statutory threshold has been met, many organizations also experience additional benefits, including:

• Greater donor confidence
• Improved financial transparency
• Stronger grant applications
• Enhanced board oversight
• Better accounting processes
• Increased organizational credibility

Why Choose ELT CPA LLC?

ELT CPA LLC provides independent financial statement review services for charitable organizations throughout West Virginia.

Our team understands nonprofit financial reporting requirements and works closely with charitable organizations to complete review engagements efficiently while minimizing disruption to day-to-day operations.

Our services include:

• Independent financial statement reviews
• Nonprofit accounting guidance
• GAAP financial statement assistance
• Annual reporting support
• Remote service throughout West Virginia
• Responsive communication throughout the engagement

Whether your organization is preparing for its first financial review or has completed reviews previously, ELT CPA LLC is ready to help.

Frequently Asked Questions

What triggers a financial review in West Virginia?

West Virginia generally requires charitable organizations reporting $200,000 or more in total revenue to submit financial statements that have been reviewed or audited by an independent CPA (West Virginia Code § 29-19-6).

Does West Virginia use revenue or contributions?

West Virginia bases its reporting requirement on total revenue, not charitable contributions.

Is an audit automatically required after a certain revenue level?

No. West Virginia law generally permits organizations meeting the threshold to submit either reviewed or audited financial statements. The statute does not establish a higher revenue threshold that automatically requires an audit based solely on revenue.

When should our organization begin planning?

Organizations should contact their CPA several months before their annual filing deadline to allow sufficient time for planning and completion of the engagement.