Services - Ratliff & Sommerville, P.C.

ACCOUNTING & FINANCIAL STATEMENT SERVICES

Audit Services

An audit is the greatest form of assurance that an organization's financial statements are fairly presented in accordance with generally accepted accounting principles or some other accepted form of accounting. An audit focuses on the fair presentation of the assets, liabilities, and net assets of an organization as of a certain date agreed upon with the client, but most commonly an organization's fiscal year end. It includes verification of an organization's assets and liabilities through outside, third-party documentation, along with a thorough review and tests of internal controls and operating procedures.

In addition to its report on the financial statements of an organization, Ratliff & Sommerville issues a comprehensive memorandum regarding an organization's internal controls and operating procedures. This memorandum not only identifies weaknesses and noncompliance with regulations, but also suggests improvements in the organization's operating efficiencies. We offer recommendations for strengthening internal controls, and will assist you in preparing a detailed list of policies and procedures for adoption. Our practical suggestions for improving the organization's accounting procedures and internal controls are based on our vast experience with nonprofit clients and include recommendations for correcting, modifying, or discontinuing procedures or practices which are noncompliant.

Review Services

A review of an organization's financial statements focuses on the fair presentation of assets, liabilities, and net assets of an organization as of a certain date, and consists primarily of inquiries of personnel and analytical procedures applied to financial data. This procedure requires a representation letter from an organization's management. Ratliff & Sommerville performs its review in accordance with the publication, Statements on Standards for Accounting and Review Services, issued by the American Institute of Certified Public Accountants.

Unlike the procedures customarily performed in an audit, a review does not contemplate an understanding of the internal controls or assess control risk, nor does it test accounting records and responses to inquiries by obtaining corroborating evidential matter. Consequently, a review does not provide assurance that we will become aware of all significant matters that would be disclosed in an audit. Ratliff & Sommerville's engagement in this regard cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. Should our review discover any material errors, fraud, or illegal acts, these will be brought to the client�s attention.

Compilation Services

A compilation of financial statements is a procedure whereby Ratliff & Sommerville receives financial data from its client and prepares financial statements in accordance with generally accepted accounting principles. Compiled financial statements are prepared in accordance with the publication, Statements on Standards for Accounting and Review Services, issued by the American Institute of Certified Public Accountants. A compilation is limited to our preparation and presentation of the financial statements' information as represented by the organization's management. Since we do not audit or review the financial statements when performing a compilation, we do not express an opinion or otherwise offer any other form of assurance regarding the information.

Other Accounting Services

As a full service accounting firm, Ratliff & Sommerville offers assistance to its clients with various aspects of an organization's accounting functions, including the selection of computer software programs, the creation and implementation of an organization's chart of accounts, the input of financial transactions into the accounting software, and the compilation of financial statements for internal management use.

TAX SERVICES

Tax Preparation Services

Ratliff & Sommerville offers an extensive practice in the preparation of various federal and state tax returns. Our firm's tax preparation practice focuses on the following services:

Individual Income Tax Returns - With our firm's primary practice in the area of religious organizations, we have expertise in the preparation of federal individual income tax returns for ministers and other employees of religious organizations. The tax law for ministers is unique, and our firm makes it a priority to have a strong working knowledge of these unique laws.
Nonprofit Information Returns - Forms 990 - Our firm prepares a significant amount of Forms 990 for exempt organizations of all sizes. Forms 990 are an organization's best form of public relations. The forms are required to be available for public inspection. Additionally, the majority of Forms 990 that are filed are obtained by the Guidestar organization and posted on the internet. Because of the public nature of the form, we believe that the Form 990 should be prepared with great care. A poorly prepared Form 990 can present a negative picture of an exempt organization. Not only is the staff at Ratliff & Sommerville dedicated to the thorough and proper completion of this form, but Elaine Sommerville acts as an instructor for the American Institute of Certified Public Accountants for its course on preparation of the Form 990 to other certified public accountants.
Payroll Tax Returns - The payroll tax rules for nonprofit organizations, and especially for churches, can be complicated due to the special rules for both nonprofit organizations and for employees that are ministers. There are many exceptions to the fringe benefit rules for churches that further complicate payroll procedures. Ratliff & Sommerville can assist organizations in the preparation of payroll returns and in educating an organization's staff to assist in its compliance in this area.

Consulting Services

IRS Compliance Review - The primary focus of an IRS Compliance Review is to determine if an organization is complying with the specialized IRS rules and regulations for nonprofit organizations regarding the documentation of disbursements, transactions with related and disqualified persons, reporting minister's wages, and other matters. Upon our engagement, we request from the client the accumulation and copies of certain records and information for our review and use during the engagement. In order to determine the organization's compliance with the IRS rules and regulations, we review and analyze various activities and transactions, as well as request various documents supporting the transactions in a fashion similar to the requests made by an IRS auditor in the course of an IRS examination.
Consulting and Research Services - Ratliff & Sommerville attempts to find and provide answers to the organization's questions regarding federal and state tax issues. As organizations become more extensive in their operations, educating its staff on these rules as well assisting in the preparation and filing of their quarterly and annual payroll tax returns is a service our firm also provides.
IRS Representation - Ratliff & Sommerville is available to assist both individuals and organizations with representation before the IRS. Elaine Sommerville has assisted in the representation of several large church case exams. This unique experience enables our firm to work with clients based on actual knowledge and experience rather than just theory.