Cost for Compilation Statement

[JohnH]

Knowing that this question may fall into the "how much does it cost to build a house ?" category, I'm still posting it with a request for any comment.

I'm putting together an analysis for a non-profit organization which is evaluating whether to join a national alliance. This is a small, established non-profit with total contribution receipts in the range of $250,000 per year. It is a valid non-profit with all activities being honest and operating on a highly ethical basis. There are no grants or other odd revenue sources, only contributions by individuals and some churches. Recordkeeping is in good order and there are no fancy year-end adjustments - it is virtually operating on a cash basis. There are some marginal benefits to joining the national alliance, but nothing significant.

The main sticking point is that there is a requirement that Compilation statements be submitted annually. I'm thinking that a Compilation statement would probably cost a minimum of $3,000 - $5,000 per year, but this is simply a number I pulled from another source which may or may not be reliable. The organization is located in a major metropolitan area in a southern state, so I'm thinking the cost might be on the moderate side rather than "New York" or "California" prices, for example. Anyone care to take a shot at my $3,000 - $5,000 figure?

[ILLMAS]

I am not licensed to prepare audits or do compilations, but based on what my clients are paying (Chicagoland area), $4,500 would seem fair including the 990.

[JohnH]

Thanks for the confirmation.

Presently the 990 is costing about $1,200, so the $4,500 figure would validate my estimate on the low side.

(Incidentally, one might inquire as to why I haven't asked the CPA who prepares the 990 to give me a figure for the compilation. He would be the best source for an accurate estimate. I haven't overlooked that step, but there are reasons I don't want to pose the question to him until the board of directors has initially signed off on the concept and estimated cost)

[Lion EA]

A CPA charges my church $3,500-$5,000 for a compilation every two years to report to our Diocese. She works with a firm but does this job on the side, supposedly to give us a lower price than her employer would charge. My church is in Fairfield County, CT.

[michaelmars]

while I am used to large fees, I think I would charge about $600 for this.  There is next to -o- liability in giving a comp report and you are mostly just putting their numbers into acceptable F/S format.  Remember if you start reviewing the numbers or doing any attestation work on them then you are doing a review.  I am sure that the cpa doing the 990 is spending more time on the entity for $1200 than you would spend doing a comp.