INDUSTRY SPECIALTIES

Indiana Charter School Audit & Accounting Services

We audit more than 40 charter schools across Indiana annually, more than any other firm in the state. If your school needs an auditor who already knows your authorizer, your deadlines, and the State Board of Accounts, you’re in the right place.

Our Expertise

Charter schools don’t operate like other nonprofits, and they don’t audit like them either. Between authorizer oversight, federal grant compliance, ADM reporting, and a June 30 year-end that puts every school in the state on the same clock, you need a firm that does this all day, every day.

More than 40 Indiana charter school audits a year. We see the same findings, the same grant structures, and the same authorizer questions across dozens of schools, so we know what's normal and what's a problem before you do.

Relationships across the Indiana charter landscape. We work alongside the Indiana Charter School Board, the Office of Education Innovation, and the Indiana State Board of Accounts regularly. When a question comes up, we know who to call.

A team that lives here. Your partner, manager, and staff accountants all work in Indiana. No handoffs to an out-of-state team that's never seen a Form 9.

A deadline we've never missed. Your audit is due December 31. We build the schedule backward from that date and tell you exactly what we need and when.

Best practices from across the state. When we see something working well at one school, we bring it to the next one.

Services We Offer

Audits

Financial statement audits for charter schools.

We perform the annual audit your authorizer and the State Board of Accounts require, including Single Audits under Uniform Guidance when your federal spending crosses the threshold. You get a clean set of financial statements, a management letter you can actually act on, and a board presentation that makes sense to non-accountants.

Tax Services

Form 990, NP-20, and the filings schools forget.

Every Indiana charter and innovation school files a federal Form 990 and a state NP-20, starting before your first year of operations is even finished. We handle property tax exemption filings for each parcel you own, and the five-year state renewals that quietly lapse and cost schools their exempt status.

Assessments & Advisory

Internal controls, grant compliance, and board-ready reporting.

Most schools come to us for the audit and stay for everything around it: tightening receipt and deposit procedures, getting revenue recognition right on federal cost-reimbursement grants, reconciling Form 9 cash-basis reporting to accrual financials, and building the documentation that supports your semi-annual ADM count.

What Does a Charter School Audit Cost?

This is the question most schools ask first…and the one most firms won’t answer. Here’s how audit fees actually work.

Charter school audit fees are almost always quoted as a fixed fee for the engagement, not an hourly rate. You should know your number before work begins, and it shouldn’t move unless the scope moves. If a firm quotes you hourly with no cap, ask why.

WHAT DRIVES THE NUMBER:

Number of campuses.

A single-site school and an eight-campus network are different engagements. Each additional location adds testing and travel.

Federal funding levels.

If your federal expenditures cross the Single Audit threshold, that's additional required work under Uniform Guidance, and it's the most common reason a fee changes year over year.

The condition of your records.

A school with clean monthly closes and a responsive bookkeeper costs less to audit than one where we're reconstructing the year. This is the factor you have the most control over.

Your first year vs. your fifth.

First-year audits take longer. There's no prior-year balance to roll forward and no established relationship to lean on.

Findings and follow-up.

Prior-year findings that haven't been remediated mean more testing this year.

WHAT YOU SHOULD EXPECT FROM ANY FIRM YOU'RE CONSIDERING:

We'd rather have the fee conversation early than surprise you later.

How a Charter School Audit Works, Start to Finish

Every Indiana charter school has a June 30 fiscal year end, and every audit is due to your authorizer by December 31. That gives us a six-month window, and we use it in two phases.

Who you'll be working with

Get to know the people on your engagement.

Navigating the complexities of financial compliance for your school

With strict compliance guidelines, managing revenue recognition for federal grants, and numerous nuanced financial concerns on your plate, you need a partner who’s chartered (pun intended) these waters before.

We know charter schools.

We audit more than 40 charter schools in Indiana every year. We've worked with single-site schools opening their doors for the first time and with multi-campus networks. About one to two new charter schools open in Indiana each year, and we're usually in the room early.

We operate like your coach.

Some firms operate like an accounting cop looking over your shoulder. We operate like your accounting coach, so you're compliant and confident at every stage. When we find something, you'll hear about it in plain language, along with what to do about it.

We know who to call.

Charter schools answer to authorizers, and authorizers have expectations. We work regularly with the Indiana Charter School Board, the Office of Education Innovation, and the Indiana State Board of Accounts. That familiarity means fewer surprises for your board.

Signs It’s Time to Look at a New Audit Firm

Most charter schools pick an auditor and stay put, and that’s usually the right call. Continuity is worth something. But a few situations are worth a second look:

You have a new executive director or business manager. New leadership inherits the audit relationship without ever having evaluated it. It's a reasonable time to ask whether it still fits.

Your authorizer has raised concerns. If your authorizer has flagged the quality or timeliness of your audit, that's a signal, not a suggestion.

You changed authorizers. New oversight often comes with new expectations.

Last year's audit ran late. A late audit puts your board, your authorizer, and your funders in an uncomfortable position. It shouldn't happen twice.

You're getting a report, not a relationship. If your auditor delivers statements and disappears until next spring, you're paying for compliance and getting nothing else.

You're growing. Adding campuses, taking on more federal funding, or crossing into Single Audit territory changes what you need from a firm.

If any of these sound familiar, a conversation costs you nothing.

TESTIMONIALS

"As an early-stage company, it’s important that I spend my time on the areas where I contribute the most value to growing my business. Donovan made it easy to stay focused on the business while advising me on practical tax strategy. I count on the Donovan team as an important partner to identify opportunities and avoid the “gotchas” of starting a new venture.”

"Hope Healthcare Services has worked with Donovan CPAs for many years—in tax filings and the production of financial statements. Their expertise and work quality is great, but the relationship goes beyond that of vendor-client. Donovan has been a trusted partner with Hope Healthcare through these years, often going the extra mile on our behalf. I can happily recommend them.”

"Donovan has consistently provided us outstanding audit, tax and consulting services. They are a highly valued, trusted partner in supporting the growth of our business. Their expertise is diverse. They possess a highly experienced and competent staff that is always responsive to our needs."

"Wolfe Diversified switched from a large regional CPA firm to Donovan in 2014 for consulting and our company audit and tax work. We lowered our cost and received very high quality work and great service. We have been very happy with our decision to move to Donovan and believe it has benefited our business."

"As the Hendricks County 4-H Fairgrounds and Conference Center has grown into a diverse business with more than 250 events throughout the year, we have relied on Donovan Certified Public Accountants expertise for the past 10 years. Donovan truly understands our business and we feel great knowing their financial experts are an extension of our staff."

"Donovan understands the challenges that small businesses face every day. For close to 30 years, their financial guidance has made a huge impact on our short and long-term success at Spear Corporation. Donovan continues to help us achieve our goals to grow our company and maximize our profits. They have been a true partner in everything we have accomplished at Spear Corporation."

FAQs that give the 4-1-1 for charter schools

When is the first audit due?

Your first audit is due on December 31 following the school’s first year of operation. For a school opened in the fall of 2024, your first audit is due December 31, 2025.

What forms are required for nonprofit schools in Indiana to file annually?

Every nonprofit organization in Indiana, including charter and innovation schools, must file an annual Form 990 with the Federal government and an NP-20. This requirement begins even before your school’s first year of operations.

What happens if a school fails to file its tax returns?

Schools that fail to file their tax returns risk losing their 501(c)(3) nonprofit designation. In some cases, schools may realize this issue only after engaging a CPA firm, but by then, it might be too late. We’re here to help: Schedule an appointment!

Is there anything else schools need to file besides Form 990 and NP-20?

Yes, schools must also file for a property tax exemption for each parcel of land they own. It’s important to consult a Donovan team member about the best timing for this filing.

What are the common internal control findings from the State Board of Accounts that schools should be aware of?

Schools should ensure they are compliant with the following internal control procedures:

Proper receipt and deposit procedures, including timely deposit in the bank.
Proper voucher and payment approval procedures.
Accurate Form 9 reporting, including reconciliation from cash basis (for Form 9) to accrual basis (for financial reporting).
Correct timing of revenue recognition, particularly for federal cost-reimbursement grants.
Adequate documentation of enrollment and attendance to support semi-annual Average Daily Membership (ADM) reporting.

How can I ensure my school remains compliant with these regulations?

Review your school’s internal control processes regularly, and reach out to us at Donovan CPAs for professional advice on maintaining compliance. Schedule an appointment!

How long does a charter school audit take?

From the start of preliminary work to delivered financial statements, plan on roughly four to six months. Preliminary work happens in the spring before your June 30 year-end. Final fieldwork typically begins in May and June. Draft statements follow in the fall, and everything is due to your authorizer by December 31. The single biggest factor in how long it actually takes is how quickly your team can turn around requested documents.

How much does a charter school audit cost?

Charter school audits are typically quoted as a fixed fee for the full engagement rather than an hourly rate, so you know the number before work begins. The main drivers are the number of campuses, whether your federal expenditures require a Single Audit under Uniform Guidance, the condition of your records, and whether it’s your first year. Ask any firm you’re considering for a fixed fee in writing along with a committed delivery date.

Does my charter school need a Single Audit?

If your school expends federal awards above the Uniform Guidance threshold in a fiscal year, yes. This is separate from and in addition to your financial statement audit, and it’s the most common reason a school’s audit scope and fee change from one year to the next. We’ll help you determine where you stand well before year-end.

Can our audit be done remotely?

Much of it can. Planning, document review, and a significant portion of testing happen remotely. Most engagements still include some on-site work, and for schools within driving distance of our Avon and Indianapolis offices, we generally find a day or two on site makes everything else go faster.

We're opening a new charter school. When should we engage an auditor?

Earlier than most schools do. Your first Form 990 and NP-20 obligations begin before your first year of operations is complete, and your first audit is due December 31 following your first full year. Schools that bring in an auditor during their planning year avoid the scramble and get help setting up a chart of accounts that won’t need to be rebuilt later.

Who decides which firm audits our school?

Your school’s board or executive director makes the decision. Authorizers oversee your school and set expectations for the audit, but they don’t choose your firm. Referrals do sometimes come from an authorizer or a board member.

What are the most common audit findings at Indiana charter schools?

The recurring ones we see from the State Board of Accounts are: receipt and deposit procedures that aren’t timely, voucher and payment approvals that aren’t properly documented, Form 9 reporting that hasn’t been reconciled from cash basis to accrual, revenue recognition timing on federal cost-reimbursement grants, and enrollment and attendance documentation that doesn’t fully support semi-annual ADM reporting. Most are straightforward to fix once you know to look.

Do you work with schools outside Indiana?

Our practice is concentrated in central and northwest Indiana, where the great majority of our charter school clients are located, and we serve a small number of schools elsewhere. If you’re outside Indiana, get in touch and we’ll tell you honestly whether we’re the right fit.

Let’s Talk About Your School’s Audit

Tell us your school’s name, your fiscal year end, and roughly how many campuses you operate, and we’ll come back to you with a straight answer on fit and timing.

Indiana Charter School Audit & Accounting Services

Our Expertise