Beyond the audit: Building a partnership that drives impact

By Abdo

SUMMARY

Nonprofits can gain far more from their annual audit when they approach the process as an opportunity for growth. In this Q&A, Michael Allen from My Very Own Bed and Joe Wallis from Abdo discuss how trust, transparency, and a strong auditor relationship can strengthen financial stewardship, improve operations, and ultimately help organizations increase their impact. 

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For many organizations, the annual audit is a source of dread. But for Michael Allen, founder of My Very Own Bed, it’s an opportunity to help his organization further its mission.

My Very Own Bed is a Twin Cities-based nonprofit that provides new beds to children moving into stable housing. Abdo began working with My Very Own Bed in 2022 and, as Joe Wallis, nonprofit partner and advisor, tells it, the partnership has created a meaningful opportunity for the team at Abdo too.

To get the scoop on what makes this nonprofit-auditor relationship work so well, we sat down with Joe and Michael. Here is their conversation, edited for clarity.

Abdo: When you describe the annual audit as an opportunity, what do you mean by this?

Michael: My Very Own Bed is a small organization that’s focused on growing its impact. We embrace values of equity, dignity, respect, and compassion—and we’ve embraced the audit because we see it as a learning opportunity.

In other words, we do not view the recommendations that come out of the audit as a threat. We see them as an opportunity to continue to financially mature as an organization.

When recommendations are made, I respect them because I respect the relationship we have with Abdo. And then we act upon them by implementing any necessary changes. This leads to improved processes and procedures and, most important, more beds for more kids.

Ultimately, it comes down to stewardship. This isn’t our money; it belongs to others. We have a responsibility to manage it well, and the audit helps us do that.

Joe: Michael and I have had many breakfasts and calls over the years, which I cherish. Yes, a lot of the time we’re talking about debits and credits and internal opinions, but what we’re really talking about is getting beds to kids.

It’s a symbiotic relationship—one that helps both Michael and me be stronger leaders and stronger community members. Together, Abdo and My Very Own Bed are able to make a bigger impact.

Abdo: What makes this nonprofit-to-auditor relationship work so well?

Joe: My Very Own Bed’s values closely align with Abdo’s. Like them, we are stewards of other people’s money—a principle introduced on the first day of Accounting 101 and reinforced throughout my accounting and auditing career. Hearing Michael express it so clearly felt like hearing a line from an accounting textbook.

For My Very Own Bed to be able to not only trust but also welcome our recommendations is significant. There are a lot of organizations that can do an audit. We’re also focused on building relationships, as we truly have a passion for helping nonprofits get better.

Michael: One of our core values is “relationships first.” We value and respect the relationships we have with those who help us further our mission: auditors, accountants, volunteers, and board members. Without these supporters, we wouldn’t be able to do what we do. Every relationship this organization forms can help to get more beds to more kids.

The type of partnership we have with Abdo is one that builds trust—and this leads to relationships. Joe and Abdo have also introduced us to higher quality accountants and investment advisors, which has helped us further our mission.

Abdo: What’s the one piece of advice you would give organizations approaching their audit?

Michael: One of the most important values at My Very Own Bed is that we’re open to growth and improvement. You must be vulnerable to grow, to improve. This is why we approach our audit with vulnerability, not ego. We facilitate a learning culture at My Very Own Bed, and this leads to opportunity.

Abdo: What’s next?

Michael: We live by the saying “getting better before we get bigger.” We’ll continue to apply recommendations, improve our processes and procedures, and seek to make a bigger impact before we expand our footprint. It’s about making a big impact—but not being big.

Joe: There’s a huge opportunity for the CPA world to help advocate, connect, support and educate the nonprofit space. Right now we’re focused on helping equip clients with the appropriate narrative to talk about the risks facing the nonprofit sector and advocating for our clients. This is especially important given the heavily scrutinized environment nonprofits operate in.

We want to help our clients speak with confidence in highly scrutinized environments. Nonprofits are under a microscope right now, and they need our support. Much of that support comes from promoting transparency and connecting the numbers back to the mission.

To learn more about how Abdo empowers nonprofits, contact us today.