management representation letter for non profit organization

• Insights & Analysis
• Nonprofit Jobs

Step 3: After the Audit

After the audit, the audit committee, executive director, and senior financial staff are responsible for reviewing the draft audit report, asking questions about the auditors' findings, and evaluating any recommendations before they are presented to the board in the final report.

What is the client representation "letter to management”?  This letter, sometimes referred to simply as the "management letter" serves to identify areas of operations or procedures that the nonprofit may want to improve or redesign. Since auditors work with a variety of organizations, they often are aware of "best practices" or -- at the very least -- "better practices" that they can point out in the letter to management. The audit committee or staff often asks to review a draft of the management letter just to make sure that the letter is accurate before the final version goes to the board of directors, since the board is likely to be concerned about any deficiencies or even less serious concerns that the auditors identify in the letter. The accounting standards require the auditors to report to the board any "material weaknesses" and significant deficiencies. ( SAS Nos. 114, 115 )

Issues that auditors may point out in the client representation letter typically fall into two categories:

• Material internal control issues : Issues that auditors would identify include any weaknesses in the processes, systems, and internal procedures that help to ensure that all financial transactions are recorded properly. Strong internal controls (e.g., early detection and correction) serve to highlight errors and irregularities in financial operations. Correcting the issues will provide additional integrity to the financial statements and may help to reduce audit costs in the future. The auditors will point out any material internal control issues in the management letter so that the nonprofit can address those issues before the next audit.
• Operating inefficiencies : Management letters may identify issues that are, or could become red flags, and propose improvements to resolve problems and strengthen operations. Sometimes it takes an independent or outsider’s eye to identify inefficiencies that could be improved or new technologies that will improve operations. The auditor’s letter to management may also point out operating procedures that are inefficient or unnecessary.

What is the role of the audit committee (or the board) after the audit?

The insights shared by the auditors should be presented formally and in-person by the auditor to the board of directors or the audit committee at the conclusion of the audit process. However, first there should be a discussion with the audit committee and management. In addition to acting on suggestions provided by the auditor, management/the audit committee can also use the opportunity of an annual audit to enlist the support of the auditor to undertake new initiatives. If the auditor agrees that initiatives suggested by management may strengthen operations, the auditor may choose to include management's ideas in the management letter.  Management may also identify for the auditor areas that may need further, independent corroboration in order for the board to fully appreciate the ramifications of their decisions.

Questions for the audit committee to discuss with the auditor(s) when reviewing the draft of the management letter and the audited financial statements:

• Did the auditors note any limitations on the scope or nature of the audit procedures?
• What factors did the auditors consider when determining the scope of the audit?
• Did the staff cooperate with the auditors? Was there a healthy flow of information between the staff and auditors?
• Were there any legal and regulatory matters that would impact the organization’s financial statements?
• Were there any conflicts of interest between the auditors and the organization? If so, how were they handled?
• Did the auditors find that the organization’s internal financial controls were adequate?
• Did the auditors provide a written opinion about the quality and acceptability of the nonprofit’s accounting principles?
• Were there any significant changes to the audit plan that occurred during the course of the audit?
• Were there any serious disputes or difficulties encountered by the auditors during the audit?
• The auditors will usually provide such recommendations to the committee in a “letter management.”
• The committee should review the executive director’s comments in response to the letter and receive follow-up reports on actions taken.

Questions for the audit committee to discuss with the executive director (“ED”) after the audit:

• Did the auditors perform their work efficiently and effectively? Are you (ED) satisfied with the scope, nature, and timing of the audit?
• Are you (ED) satisfied with the knowledge, skills, and abilities of those assigned to do the audit?
• Did the auditors work with the organization to ensure complete coverage and effective use of resources without redundant efforts?
• Did the committee and ED review the fee arrangement between the organization and the auditors?
• Was there any documentation that the auditors requested that the staff could not produce?
• Were there any serious disputes or difficulties encountered by the staff during the audit?
• Does the staff believe that the auditors were diligent in their review?
• Was the auditors’ presence on site during fieldwork disruptive?
• Are you satisfied that the external auditors remain independent of the organization in spite of any audit-related, or non-audit services the auditors provide to the organization?

Six questions for the audit committee/board to ask the auditors after the audit:

When the draft report and client representation letter to management is ready but before they are finalized, the audit committee/board liaison should meet with the auditors one final time before the report and letter are dated and released to the board of directors. These questions are designed to determine whether there are any issues to bring to the board's attention in connection with the audit, and to anticipate questions that a board member may typically ask when presented with the independent auditor's report.

• Was the management team cooperative and forthcoming with requested information and documentation?
• How do our accounting policies and procedures compare with those of other comparable nonprofits?
• Are there any items that might be disputed by the IRS? If yes, what documentation should be on hand to bolster the item?
• Did the management team follow suggestions noted by auditors in prior years to correct weaknesses in the internal accounting system?
• Did you discover anything regarding the financial statements or internal financial management procedures that should be brought to the attention of the board of directors?
• Do you have any suggestions for improvements in accounting, reporting, or operating procedures?

Release of the auditor's report to management

After all questions have been asked and answered, including confirmations of anything that the auditors needed to check, the final step is that the auditors will sign and date the report, and deliver it to the board of directors with a client representation letter, the same date as the audit report.

Presentation of the audit report to the board of directors 

During the meeting that the board of directors receives the independent audit, the appropriate action for the agenda is for the  board of directors to "accept" the auditor's report and letter to management, rather than "approve" them. This is because the board's action in connection with the audit is literally to receive and "accept" the auditor's independent report. The findings in the report are not subject to change by the board after the report is submitted to the board, consequently, the board's action is not to approve/disapprove, but to accept the report. However, discussion by the full board of the audit report should be encouraged so that board members are familiar with the report's findings. Generally all board members receive a copy of the independent audit and management letter in their board materials for the meeting during which the report is accepted.

Evaluating and engaging an auditor for the future

During and after the audit, audit committees evaluate the auditors' performance and recommend to the board whether to retain the same firm for next year’s audit or whether to engage a new one. Therefore, it is imperative that the audit committee is diligent in evaluating the auditors. The audit committee should consider a number of questions about its relationship with the independent auditor and should also engage the nonprofit’s key executives for their comments.

To demonstrate a commitment to transparency and accountability, the National Council of Nonprofits posts its  annual audit report  on its website in addition to posting all the other documents required to be made available to the public upon request. Read more about  cultivating a culture of accountability and transparency .

Additional resources for after the audit

• Get the Most Value from Your Audit  (Blue Avocado)
• Auditing the auditor: Questions to ask before and after the audit  (HBK)

Nonprofit Audit Guide© Table of Contents

• Nonprofit Audit Guide© Home Page
• What is an independent audit?  
• Does your nonprofit need to have an independent audit?  
• State law nonprofit audit requirements
• Federal law audit requirements
• Why a nonprofit might conduct an audit even when the law doesn’t require it .
• Board's role and audit committees
• A three-step approach to managing an independent audit
• Myth: Audits uncover fraud
• Acknowledgements

Disclaimer:  The resources in this Guide are offered for informational purposes only. The National Council of Nonprofits recommends consulting a lawyer or accountant who has expertise in accounting rules for charitable nonprofits so that you can be confident that your charitable nonprofit is in compliance with all legal requirements. And, when your organization is looking for trusted information about financial management practices, good governance, and accountability, don’t overlook the resources that membership in your  state association of nonprofits  can provide.

Beck & Company

Specialized Expertise | Creative Thinking | Unsurpassed Service

After Your Nonprofit Audit: How to Handle the Client Representation Letter

Over the past month we have looked at various aspects of a nonprofit audit. Being prepared with software systems , independent audits and checklists to keep information organized are at the top of the list to not only survive but thrive during the audit experience. But after the audit has been completed, you are not quite out of the woods. There are a few follow up tasks that if left undone can create added stress for the nonprofit accounting team.

The management letter is a review of the operations or procedures that the auditors identified as deficient. Since most auditors work with a variety of nonprofits, they have a good working knowledge of best practices for organizations and can give wise advice on bringing deficient areas up-to-par. Their suggestions can help streamline your organization, which will make it run more efficiently. Sometimes the staff in charge of the audit might ask to review a draft of the letter before it is sent to the board to verify the information because deficiencies in the accounting of a nonprofit organization, will cause anxieties in the board of directors.

What Can We Do to Correct Deficiencies?

If the auditors have spotted any deficiencies, it is best to start correcting them immediately. Eliminating deficiencies will only make your nonprofit stronger, it will also demonstrate the integrity of your organization. After the auditors have shared any concerns or red flags that were signaled by the audit, it is important to sit down with the management of your nonprofit to discuss not only the needed changes for the organization, but also the overall satisfaction with the auditors.

Is Your Organization Satisfied with the Auditor’s Work?

It is very important for your organization to be satisfied with the scope, nature, and timing of the work of the auditors. Did you feel that the auditors had the skills and knowledge to efficiently conduct the audit? Did the auditors work with the staff with minimal disruptions to the workflow of the office? Did the auditors work diligently on the review? (Read more auditor satisfaction questions available at the National Council of Nonprofits website).

Beck & Company has been in the business of helping nonprofits succeed with a broad base of managerial accounting and systems experience for over 25 years. Our understanding of business practices and technology will help you solve nonprofit accounting organizational challenges. We have a commitment to the highest standards of integrity and quality. Call us today at 703-834-0776 for a consultation to streamline your accounting methods. We can help you start preparing for your next audit to ensure an even smoother process the next time. Sign up today for one of Beck & Company’s upcoming convenient, informative webinars that will help you focus and solve many of your accounting growth challenges.

The Role of Management Representation Letters in Audits

Explore the significance of management representation letters in audits, their preparation process, and common misunderstandings in this insightful overview.

Audits are a critical component of financial transparency and corporate governance. Within this process, management representation letters play an essential role that often goes unnoticed by those outside the accounting profession.

These documents serve as a written assertion from company management regarding the accuracy and completeness of information provided to auditors. Their importance cannot be overstated, as they underpin the trust and integrity of the entire audit process.

Purpose of Management Representation Letters

Management representation letters serve as a formal attestation from a company’s executives to the auditors, confirming the veracity of the financial statements and disclosures. These letters are a professional necessity, providing auditors with assurances that all relevant information has been disclosed. They are a testament to the management’s confidence in their financial reporting and their commitment to transparency.

The letters also support the auditor’s assessment of the risk of material misstatement in the financial statements. By obtaining written confirmations, auditors can reduce the extent of substantive testing required, which can streamline the audit process. This efficiency is beneficial for both the auditors and the company being audited, as it can lead to a more focused and timely audit.

Moreover, these letters can be a safeguard against potential disputes or legal issues that may arise post-audit. In instances where inaccuracies are discovered after the audit has been completed, the letter serves as a record that management had affirmed the completeness and accuracy of the information at the time of the audit. This can be particularly important in cases where financial statements are later found to be fraudulent or misleading.

Preparing a Management Representation Letter

The preparation of a management representation letter is a meticulous process that requires careful attention to detail and a comprehensive understanding of the company’s financial affairs. It is a collaborative effort between management and auditors to ensure that all significant information is accurately reflected.

Necessary Statements Identification

Identifying the necessary statements to be included in the management representation letter is a foundational step. These statements typically cover a range of areas such as the acknowledgment of responsibility for the fair presentation of financial statements in conformity with the applicable financial reporting framework, confirmation of the completeness of the information provided, and the disclosure of any subsequent events that may affect the financial statements. Management must also confirm that they have made the auditors aware of all known instances of fraud or suspected fraud affecting the company. The identification process is guided by professional auditing standards, such as those issued by the American Institute of Certified Public Accountants (AICPA) or the International Auditing and Assurance Standards Board (IAASB).

Information Completeness

Ensuring the completeness of information in the management representation letter is paramount. This involves a thorough review of the company’s financial records and disclosures to verify that all relevant information has been included. Management must confirm that all transactions have been recorded and are reflected in the financial statements. They must also attest to the appropriateness of the accounting policies applied and whether any unrecorded liabilities exist. This step is critical as it directly impacts the credibility of the financial statements and the audit’s outcome. The completeness of information also extends to the disclosure of any related party transactions and the effects of any uncorrected misstatements identified during the audit.

Review and Approval

The final step in preparing a management representation letter is the review and approval by the company’s top executives, typically the CEO and CFO. This review process is not merely a formality; it is an active examination to ensure that the letter accurately reflects the company’s financial position and that all statements can be substantiated. The approval signifies that management has taken ownership of the representations made within the letter. It is also an opportunity for management to discuss any concerns or clarifications with the auditors before the letter is finalized. The signed letter is then dated as of the last day of fieldwork, signifying that the representations are relevant and up-to-date with the findings of the audit.

Misconceptions About Representation Letters

A common misunderstanding about management representation letters is that they are a mere formality, a routine sign-off without substantial impact on the audit’s outcome. This view underestimates the letter’s function as a document that auditors rely upon for assurance beyond the financial data and records they examine. It is not simply a procedural step, but a declaration that can have legal implications for the signatories, particularly if it is later found that the information provided was knowingly false or misleading.

Another misconception is that the letter is solely for the benefit of the auditors. While it is true that auditors use these letters to corroborate information and reduce audit risk, the benefits extend to the management and the company as well. The process of preparing the letter encourages a comprehensive review of the company’s financial disclosures, which can lead to the identification and rectification of errors before the audit is finalized. This proactive approach can enhance the quality of financial reporting and potentially prevent future financial discrepancies.

There is also a belief that once the letter is signed and the audit is complete, the responsibilities of management in relation to the representations made are concluded. However, the representations have a lasting effect, as they are a testament to the financial condition of the company at the point of the audit. Should any issues arise from the period covered by the audit, the representations made can be scrutinized for their accuracy and completeness.

How External Users Leverage Accounting Information

Strengthening your control environment for financial integrity, you may also be interested in..., balancing financial integrity with segregation of duties, detecting and preventing 'cooking the books' in finance, best practices for conducting and managing erisa section audits, the role of audit trails in enhancing financial transparency and compliance.

Home / Resources / Publication / Common Management Letter Findings for Non-profit Organizations & Audit Preparations

Common Management Letter Findings for Non-profit Organizations & Audit Preparations

November 16, 2016

For the fifth topic of the six part series GRF audit partners Jennifer Arminger and Robert Albrecht focused on the most common management letter findings for non-profit organizations that result from an annual financial statement audit and how to properly prepare for an audit, to minimize the risk of findings.  They focused on the issues that occur for both federally and non-federally funded tax-exempt entities.

Additional Program Details

Learning Objective: To better understand common deficiencies identified as a result of audit procedures within the nonprofit industry, and how to prevent such findings through proper audit preparations. Instructional Delivery Methods: Group-Live; Group Internet-based Recommended CPE: 1.5 CPE Recommended Fields of Study: Accounting & Audit Prerequisites: None Required Advance Preparation: None Program Level: Basic Course Registration Requirements: None Refund Policy: No fee is required to participate in this session. Cancellation Policy: In the event that the presentation is cancelled or rescheduled, participants will be contacted immediately with details. Complaint Resolution Policy: Gelman, Rosenberg & Freedman is committed to our seminar participants’ 100% satisfaction and will make every reasonable effort to resolve complaints as quickly as possible. Please contact [email protected] with any concerns.

Download Now

Open Forum: Ask the CPAs (Nonprofits)

Understanding of the New FASB Accounting Standard for Nonprofit Entities: Presentation of Financial Statements (Second Webinar)

• Wealth Advisory

• Audit & Assurance
• Business Valuation
• Forensic & Litigation Support
• High Net Worth
• Management Advisory
• Wealth Management
• Construction & Real Estate
• Government Contractors
• Manufacturing & Distribution
• Service Businesses
• Careers & Culture
• Client Testimonials

3 Common Nonprofit Management Letter Comments and How to Avoid Them

By: Tricia Love Thomas

A primary responsibility of nonprofit directors and officers is to ensure that their organization is accountable for its programs and finances to contributors, its members, the general public and government regulators. 

During the annual audit process, the auditor is required to issue a letter to officers and directors regarding its internal controls. The letter is known as the “management letter.” This letter includes items of concern, found by the auditors, which probably need attention by the organization’s management team.

Normally when these items are brought to management’s attention, it means there are “deficiencies” or “weaknesses” in the controls of the organization. Internal controls are systems of policies and procedures that protect the assets of an organization, create reliable financial reporting, promote compliance with laws and regulations, and achieve effective and efficient operations. These items might have an impact on the future of the organization, such as receiving or losing grants or donations, avoiding penalties, or even as severe as misappropriation of the organization’s assets.  

It is very important for nonprofit executives to understand and design controls that avoid having these kinds of issues show up in a management letter. Strong controls will help preserve your organization and its purpose.

Common Management Letter Comments

Organizations have different policies and procedures that are designed to meet their unique needs. However, the fundamental approach to maintaining and establishing policies and procedures is the same for all organizations. Common weaknesses in internal controls of nonprofits appear in many organizations, regardless of size.  

Following is a list of a few common management letter comments related to internal control, and how to avoid them.

1. Classifications and Recognition of Revenue

The classification of revenue is one of the most common management letter comments, perhaps because classification and recognition of revenue is one of the most challenging aspects of nonprofit accounting.  

How to avoid it —  Establish an understanding with the grantor or donor, and clearly communicate to all employees the requirements for properly classifying and recognizing revenue. It is very important that this communication be documented in a written format so everyone can refer to it going forward.

2. Grant Reporting and Reimbursement Request

In many organizations, federal funds or other granting sources are a valuable source of revenue. The grants may impose very specific and stringent operational or reporting requirements, which can cause complications and misunderstanding between the organization and the grantor.  

How to avoid it —  Many nonprofits properly file and request reimbursements in a timely manner, but not necessarily accurately, according to the requirements of the grant.  

To ensure that these reports are being filed properly, nonprofits should practice extreme care in preparing these reports, ensure all support is adequate and attached to the report, and have management review the reports before filing them. You should document in your organization’s policies and procedures a report review process that should occur before filing. This should help prevent any filing errors and ensure all filing requirements have been met.

3. Board Monitoring of Accounting Functions

Many nonprofit organizations maintain and operate in a small environment. This might make it challenging to segregate critical duties . Establishing proper segregation of duties is the most important factor in developing strong internal controls within an organization.

How to avoid it   — One recommendation is to involve the board in monitoring and approving cash disbursements, reviewing bank reconciliations, approving revenue classifications and any other important process that is relevant to your organization. By involving the board it will give your organization strong governance over the internal controls of your organization.

From an Auditor’s Perspective: What’s the Most Important Thing You Can Do?

From an auditor’s perspective, the number one way to establish that your controls are being properly implemented is to maintain adequate documentation of all transactions, including proper signoffs on any review or control processes.

It is also important to review your policies and procedures on an annual basis with all parties involved in the process, including the board of directors. Employees who put these policies and procedures into practice should also be involved in this annual review to reinforce their understanding of the rules. This should help prevent miscommunication and misunderstanding, and ensure that important policies and procedures are followed.

Be Strong by Exercising and Implementing Key Controls

Following these fundamental recommendations and recognizing the importance of strong internal controls will help you safeguard your organization. It will also potentially eliminate any further management letter comments by your auditor.

Contact our Nonprofit Group here or call 800.899.4623.

This post was originally published in March 2014 and has been updated for accuracy and comprehensiveness.

On-Demand Webinar

What your nonprofit's financial statements reveal.

You May Also Be Interested In

How to strike out fraud in your organization, businesses employing veterans could be eligible for federal award.

14+ Management Representation Letter Format, What is It, Examples

• Letter Format
• January 24, 2024
• Business Letters , Contract Letters , Legal Letters

Management Representation Letter Format : A management representation letter format is a formal document used by auditors to obtain written confirmation from management about certain financial and non-financial matters . The Business letter is an important part of the audit process as it helps auditors gain a better understanding of the client’s business operations, accounting policies, and financial reporting practices .

• Business Inauguration Invitation Letter 
• Business Proposal Acceptance Letter Format
• Business Invitation Letter Format
• Business Agreement Letter Format
• Business Contract Letter Format 

Management Representation Letter Format

Content in this article

The management representation letter format is typically including the following components:

• Opening Paragraph: The Legal letter begins with a formal greeting and an explanation of the purpose of the letter. It may also include the date of the audit and the reporting period.
• Responsibilities of Management: This section outlines the responsibilities of management in relation to the financial statements and the audit process. It confirms that management is responsible for the preparation and presentation of the financial statements in accordance with accounting principles, maintaining adequate internal controls, and providing the auditor with access to all relevant information.
• Representations: This is the main body of the letter, where management makes specific representations about various financial and non-financial matters. These may include statements about the completeness and accuracy of financial statements, compliance with laws and regulations, the absence of fraud, and the adequacy of internal controls.
• Closing Paragraph: The Contract letter concludes with a statement confirming that management has disclosed all relevant information to the auditor and that the representations made in the letter are true and accurate.

It is important to note that the management representation letter Format is a legal document and should be drafted with care. Management should review the letter carefully before signing it, as they are legally responsible for the accuracy of the information provided.

In addition to providing auditors with important information about the client’s business, the management representation letter can also serve as a valuable communication tool between management and the auditor . It can help to identify potential issues early in the audit process and facilitate a smoother and more efficient audit.

Management Representation Letter Format – Sample Format

Below is a Sample Format of Management Representation Letter Format:

[Your Company Letterhead]

[External Auditor’s Name]

[External Auditor’s Firm]

[Address Line 1]

[Address Line 2]

[City, State, ZIP Code]

Dear [External Auditor’s Name],

Re: Management Representation Letter

We appreciate the opportunity to work with your firm in connection with the audit of the financial statements of [Your Company Name] for the fiscal year ended [Date]. In connection with your audit, we are providing you with this representation letter.

We, the management of [Your Company Name], confirm the following representations:

• The financial statements have been prepared in conformity with the generally accepted accounting principles (GAAP) and present fairly the financial position, results of operations, and cash flows of the company.
• Management is responsible for establishing and maintaining effective internal control over financial reporting, and there have been no significant changes in the internal control over financial reporting that could have a material effect on the company’s ability to record, process, summarize, and report financial data.
• To the best of our knowledge, there has been no fraud or illegal acts that have materially affected or are reasonably likely to materially affect the financial statements.
• Except as disclosed in the financial statements or in the notes thereto, there are no pending or threatened legal actions, claims, or assessments that could have a material effect on the financial statements.
• All significant information and documentation related to the company’s operations and financial transactions have been made available to your firm.
• We have disclosed all significant events occurring after the balance sheet date that would require adjustment to, or disclosure in, the financial statements.

This representation letter is provided to you in connection with your audit of the financial statements of [Your Company Name] and should be read in conjunction with the auditor’s report. We acknowledge our responsibility for the design and implementation of internal controls to prevent and detect fraud, as well as the preparation of financial statements.

Please let us know if you need any further information or clarification. We appreciate your professional services and look forward to a successful audit.

[Your Name]

[Your Title]

[Your Company Name]

[Your Contact Information]

This is a general template for a management representation letter. Specific content may vary based on the company’s circumstances and the requirements of the external auditor. It is advisable to consult with legal and accounting professionals when preparing such letters.

Email Ideas about Management Representation Letter Format

Here’s an Email Ideas for Management Representation Letter Format:

Subject: Request for Management Representation Letter

Dear [Manager’s Name],

I am writing to request your assistance in providing a management representation letter format to complete our audit process. As you are aware, the management representation letter is a crucial document that provides written confirmation from management on the accuracy and completeness of financial statements and related disclosures.

The representation letter helps our auditors to obtain evidence in support of the financial statements and to obtain assurance that management has fulfilled its responsibilities. It also serves as a tool for our auditors to document the representations made by management during the course of the audit.

We would appreciate it if you could provide the management representation letter as soon as possible, but no later than [date]. We understand that the process of preparing this letter can take some time and we are available to discuss any questions or concerns you may have.

Please let us know if you need any further information or assistance in preparing the letter. We appreciate your cooperation and look forward to completing the audit process.

Thank you for your attention to this matter.

Management Representation Letter Format to Auditor

This letter, presented to auditors, formalizes the company’s commitments, affirming the accuracy of financial data, adherence to accounting standards, and cooperation with auditors to ensure a transparent and accurate audit process.

We appreciate the opportunity to collaborate with your firm for the audit of the financial statements of [Your Company Name] for the fiscal year ended [Date]. In connection with the audit, we are pleased to provide you with the following representations:

• The management of [Your Company Name] is responsible for the preparation and fair presentation of the financial statements in conformity with the generally accepted accounting principles (GAAP).

Should you require any further information or clarification, please do not hesitate to contact us. We appreciate your professional services and look forward to a successful audit.

This letter is a general format for a management representation letter to an auditor. Specific content may vary based on the company’s circumstances and the requirements of the external auditor. Always consult with legal and accounting professionals when preparing such letters.

Management Representation Letter Format to Bank

This Management Representation Letter Format serves to affirm the accuracy of financial information, adherence to credit terms, and compliance with agreements, fostering transparency in the company’s dealings with the bank.

[Bank Name]

[Bank Address Line 1]

[Bank Address Line 2]

Dear [Bank Manager’s Name],

Re: Management Representation Letter for Banking Purposes

We hereby provide this Management Representation Letter in connection with our banking relationship with [Bank Name]. This letter is to confirm certain representations to assist the bank in its assessment of our financial standing and creditworthiness.

• We confirm that the financial statements provided to the bank are prepared in accordance with generally accepted accounting principles (GAAP) and present fairly our financial position as of [Date].
• All information provided regarding our credit facilities, loans, and guarantees is accurate, complete, and reflective of our current financial obligations to the best of our knowledge.
• We confirm that we are in compliance with all terms and conditions outlined in our loan agreements, credit facilities, and any other financial arrangements with the bank.
• We have disclosed any material changes in our financial condition, business operations, or other relevant matters that may impact our ability to meet our financial obligations to the bank.
• There are no pending or threatened legal proceedings, disputes, or litigation that could materially affect our ability to fulfill our financial commitments to the bank.
• The undersigned individuals have the authority to provide these representations on behalf of the company, and all necessary corporate approvals have been obtained.

This Management Representation Letter is provided solely for the purpose of supporting our banking relationship with [Bank Name]. We acknowledge our responsibility to promptly inform the bank of any material changes that may affect the accuracy of these representations.

If you require any additional information or documentation, please do not hesitate to contact us. We appreciate your continued support and understanding.

This Management Representation Letter to the bank is a formal document confirming key financial and operational details. Customize it as needed based on your specific banking relationship and requirements.

Management Representation Letter Format – Template

Here’s a Template of Management Representation Letter Format:

[Company Letterhead]

[External Auditor Name] [External Auditor Address] [External Auditor City, State ZIP Code]

Dear [External Auditor Name],

We are pleased to provide you with this management representation letter in connection with the audit of our financial statements for the year ended [Date]. As management of [Company Name], we acknowledge our responsibility for the preparation and presentation of the financial statements in accordance with generally accepted accounting principles.

We confirm that we have provided you with all relevant information necessary for the audit and that we have disclosed all known or suspected fraud, illegal acts, or non-compliance with laws and regulations that may have a material effect on the financial statements.

We represent that the financial statements are complete and accurate, and that they fairly present, in all material respects, the financial position of [Company Name] as of [Date], and the results of its operations and cash flows for the year then ended.

We also confirm that the representations made in this letter are true and accurate as of the date of this letter.

[Your Name] [Your Title] [Your Company Name]

Management Representation Letter for External Audit

This letter reinforces the company’s commitment to transparency, providing essential assurances to external auditors regarding the accuracy of financial information and cooperation throughout the audit, crucial for ensuring the integrity of the audit process.

[Audit Firm Name]

[Audit Firm Address]

Re: Management Representation for the External Audit of [Company Name]

We, the undersigned management of [Your Company Name], hereby provide this letter to confirm certain representations in connection with the external audit of our financial statements for the fiscal year ending [Date].

• We confirm that the financial statements, including the balance sheet, income statement, and cash flow statement, present a true and fair view of the financial position of [Your Company Name] as of [Date].
• The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) [or International Financial Reporting Standards (IFRS)].
• We have established and maintained effective internal controls to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with applicable accounting standards.
• All significant information and disclosures related to our operations, financial position, and business transactions that may affect the understanding and interpretation of the financial statements have been disclosed to the best of our knowledge.
• All assets and liabilities, including contingent liabilities, have been properly recorded and disclosed in the financial statements.
• We have disclosed to you all known and potential legal claims, disputes, and litigations that may have a material impact on the financial statements.
• We acknowledge our responsibility to provide you and your team with complete access to all information and documents requested during the audit process.
• We confirm that there have been no changes in accounting policies or practices that materially affect the financial statements without appropriate disclosure.

This letter is provided solely for the purpose of supporting the external audit of our financial statements. We understand the importance of your audit in providing assurance to our stakeholders, and we commit to providing all necessary cooperation throughout the audit process.

If you require any additional information or clarification, please do not hesitate to contact us.

This Management Representation Letter for an external audit assures the auditor of the accuracy and completeness of financial statements, compliance with accounting standards, and cooperation during the audit process. Customize it as per your specific company and audit requirements.

Management Representation Letter to Investors

This letter serves as a transparent communication tool, instilling confidence among investors by affirming the company’s commitment to sound financial practices, compliance, and overall business stability.

[Investor’s Name]

[Investor’s Company/Organization]

[Investor’s Address]

Dear [Investor’s Name],

Re: Management Representation Letter to Investors

We, the undersigned management of [Your Company Name], are pleased to provide this letter to investors to affirm certain key aspects of our operations and financial position. This representation is made as of [Date] in connection with your investment in our company.

• We confirm that the financial statements provided to investors accurately represent the financial position of [Your Company Name] as of [Date]. The statements have been prepared in accordance with generally accepted accounting principles (GAAP) [or International Financial Reporting Standards (IFRS)].
• The management assures investors that the operational performance of the company is in line with the disclosed business plans and strategies. Any material changes have been duly communicated.
• We confirm that the company is in compliance with all applicable laws and regulations relevant to its operations. Any deviations have been appropriately addressed or disclosed.
• All material contracts and agreements that may impact the company’s financial position have been accurately disclosed to investors. There have been no material breaches of these contracts.
• The management has disclosed all known risk factors that may materially affect the company’s financial position or future prospects. We are committed to proactive risk management.
• Funds invested by our esteemed investors have been utilized in accordance with the stated purposes and business plans as communicated during the investment process.
• Any forward-looking statements made by the management are based on reasonable assumptions. However, actual results may vary, and the company is not obligated to update these statements.
• The management is dedicated to maintaining open lines of communication with investors. Any significant developments or changes in the company’s status will be promptly communicated.

This letter is intended to provide additional assurance and transparency to our valued investors. We appreciate your trust in [Your Company Name] and remain committed to creating value and fostering a mutually beneficial partnership.

If you have any questions or require further clarification, please do not hesitate to contact us.

This Management Representation Letter to Investors affirms key aspects of the company’s financial position, operational performance, and commitment to transparency, providing reassurance to investors about their investment in the company. Customize it as per your specific company and investor relations.

Management Representation Letter to Regulators

This letter serves as a formal commitment from the company’s management to regulatory bodies, ensuring transparency, accountability, and adherence to regulatory requirements, thereby fostering trust and regulatory compliance.

[Regulatory Authority Name]

Subject: Management Representation Letter

Dear [Regulatory Authority Name],

Re: Management Representation for Compliance with [Applicable Laws/Regulations]

We, the undersigned management of [Your Company Name], hereby provide this letter to confirm our commitment to compliance with all applicable laws, regulations, and industry standards under the jurisdiction of [Regulatory Authority Name].

• We affirm that our company operates in full compliance with all relevant laws and regulations governing our industry and business operations.
• The financial statements of [Your Company Name], including the balance sheet, income statement, and cash flow statement, have been prepared in accordance with applicable accounting standards, providing a true and fair view of the company’s financial position.
• We have established and maintained effective internal controls to ensure the accuracy and reliability of financial reporting and compliance with regulatory requirements.
• All material information, events, and transactions that may affect the company’s compliance status or financial position have been transparently disclosed.
• We commit to timely and accurate filing of all required reports, statements, and documentation as per the regulations enforced by [Regulatory Authority Name].
• We acknowledge our responsibility to fully cooperate with any regulatory inspections or inquiries that may arise, providing all necessary information and documentation as requested.
• Our management is dedicated to continuous improvement in our compliance practices, ensuring that we stay abreast of any changes in laws or regulations that may impact our business.

This letter is provided for the purpose of assuring [Regulatory Authority Name] of our dedication to compliance and transparent business practices. We understand the importance of regulatory oversight in maintaining market integrity and protecting the interests of stakeholders.

This Management Representation Letter to Regulators emphasizes the company’s commitment to compliance with applicable laws and regulations, providing assurance to regulatory authorities and fostering transparency in business operations. Customize it based on your specific company and regulatory requirements.

Management Representation Letter Format – Example

Here’s an Example of Management Representation Letter Format:

As management of [Company Name], we acknowledge our responsibility for the preparation and presentation of the financial statements in accordance with generally accepted accounting principles. We understand that you will be conducting an audit of our financial statements for the year ended [Date].

We confirm that we have disclosed all known or suspected fraud, illegal acts, or non-compliance with laws and regulations that may have a material effect on the financial statements. We also confirm that we have provided you with access to all relevant information necessary for the audit.

We understand that this letter is a legal document and that we are responsible for the accuracy of the information provided. We confirm that the representations made in this letter are true and accurate as of the date of this letter.

Management Representation Letter Format – Example 

Formal Management Representation Letter Format

This Management Representation Letter Format serves to provide external auditors with essential assurances from management regarding the accuracy and completeness of financial information, adherence to legal and regulatory requirements, and the effectiveness of internal controls.

Re: Management Representation for [Year/Period] Ended [End Date]

We, the undersigned management of [Your Company Name], are providing this letter to confirm certain representations made to you during the audit of our financial statements for the [Year/Period] ended [End Date].

• We acknowledge our responsibility for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework.
• To the best of our knowledge and belief, the company has complied with all relevant laws and regulations that may materially affect the financial statements.
• We have established and maintained effective internal control over financial reporting, and any identified deficiencies have been disclosed to you.
• We have made you aware of any known or suspected instances of fraud or illegal acts affecting the company.
• All related party transactions have been accurately identified, disclosed, and recorded in accordance with the applicable financial reporting framework.
• We have disclosed to you all known actual or potential litigation and claims that may have a material effect on the financial statements.
• We have assessed the company’s ability to continue as a going concern and disclosed any uncertainties related to going concern appropriately.
• The information provided to you during the audit is complete and accurate, and we have disclosed all significant matters relevant to the financial statements.

This representation is provided to assist you in obtaining reasonable assurance that the financial statements are free from material misstatement. If there are any additional matters or information you require, please contact us promptly.

We appreciate your professional services and look forward to a successful completion of the audit.

This Formal Management Representation Letter Format is designed to provide external auditors with assurances on various aspects related to financial statements, compliance, internal controls, and more. Customize it based on your specific company and audit requirements.

Fraud and Illegal Acts Representation Letter

This letter underscores the company’s dedication to integrity and transparency, outlining measures taken to prevent and address fraudulent activities, and providing assurances to external auditors regarding compliance with legal and ethical standards.

Subject: Representation Regarding Fraud and Illegal Acts

Re: Fraud and Illegal Acts Representation

We, the undersigned management of [Your Company Name], hereby provide this representation regarding the prevention, detection, and reporting of fraud and illegal acts within the organization for the [Year/Period] ended [End Date].

• We acknowledge our responsibility for the prevention and detection of fraud and illegal acts within the organization.
• We have established and maintained internal controls and procedures designed to prevent and detect fraud and illegal acts.
• Employees are provided with adequate training and awareness programs to understand the risks associated with fraud and illegal acts and are encouraged to report any concerns through appropriate channels.
• We have communicated ethical standards and expectations to all employees, emphasizing our commitment to conducting business with integrity and in compliance with applicable laws and regulations.
• Any known or suspected instances of fraud or illegal acts are promptly reported to the appropriate levels of management and, if necessary, to the board of directors.
• In the event of identified fraud or illegal acts, we conduct thorough investigations and implement remedial actions, including disciplinary measures and corrective measures to prevent recurrence.
• We have established mechanisms to protect whistleblowers from retaliation and encourage the reporting of concerns without fear of reprisal.
• We commit to cooperating fully with external authorities, including law enforcement agencies and regulatory bodies, in the investigation of fraud or illegal acts.
• All representations made to you regarding the prevention, detection, and reporting of fraud and illegal acts are accurate and complete.

This representation is provided to assist you in obtaining reasonable assurance that the financial statements are free from material misstatement, including those resulting from fraud or illegal acts.

If you have any questions or require further clarification on any matters related to fraud and illegal acts, please do not hesitate to contact us.

This Fraud and Illegal Acts Representation Letter is designed to assure external auditors of the company’s commitment to preventing, detecting, and reporting fraud and illegal acts. Customize it based on your specific company policies and procedures.

FAQS About Management Representation Letter Format, What is It, Examples

What is a management representation letter format.

A Management Representation Letter Format is a formal document issued by a company’s management to external auditors, confirming certain representations related to financial statements, compliance, internal controls, and other crucial aspects during an audit.

What is the Purpose of a Management Representation Letter Format?

The primary purpose is to provide external auditors with written representations from management regarding various aspects of the company’s operations. Management Representation Letter Format helps auditors obtain assurance on the accuracy and completeness of financial information and other relevant matters.

What Information is Typically Included in a Management Representation Letter Format?

The Management Representation Letter Format typically includes representations related to financial statements, compliance with laws and regulations, internal controls, fraud and illegal acts, related party transactions, litigation, and the going concern assumption.

Why is a Management Representation Letter Format is Important in an Audit?

The Management Representation Letter Format is crucial as it formalizes management’s acknowledgment of its responsibilities and provides auditors with assurances on key matters. It enhances the audit process by obtaining explicit confirmations from management regarding the information and processes being audited.

Is a Management Representation Letter Standardized?

While there are common elements, the letter is often customized to suit the specific circumstances and requirements of the company and the audit. It may vary in content based on industry practices, regulatory requirements, and the auditor’s specific requests.

Are There Risks Associated with Providing Management Representation Letter Format?

Yes, Management Representation Letter Format, there are risks, and management should carefully consider the accuracy of the representations made. Providing false or misleading information in the representation letter can have legal and financial consequences.

The Management Representation Letter Format is a formal document that serves as an important part of the audit process . It outlines the responsibilities of management and makes specific representations about various financial and non-financial matters. The Management Representation Letter Format should be carefully reviewed and signed by management to ensure that the information provided is accurate and complete .

Related Posts

25+ Complaint Letter Format Class 11 – Email Template, Tips, Samples

15+ Business Letter Format Class 12 – Explore Writing Tips, Examples

21+ Black Money Complaint Letter Format, How to Write, Examples

11+ Authorized Signatory Letter Format – Templates, Writing Tips

20+ Authorization Letter Format for ICEGATE Registration – Examples

28+ Assurance Letter Format – How to Start, Examples, Email Template

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Name  *

Email  *

Add Comment

Save my name, email, and website in this browser for the next time I comment.

Post Comment

All Formats

Table of Contents

11+ management representation letter templates in doc | pdf, 1. management representation letters template, 2. illustrative management representation letter template, 3. management representation letter template in pdf, 4. sample management representation letter template, 5. management representation letter format, 6. management representation letter for profit entities template, 7. general management representation letter template, 8. basic management representation letter template, 9. attestation management representation letter template, 10. draft management representation letter template, 11. management report & representation letter, 12. management representation letter template in doc, who approves a management representation letter, what is the purpose of writing a management representation letter, a better understanding on management representation letter:, what are the concerns that are highlighted in a management representation letter, what are the clauses in a management representation letter, the necessities or the importance of a management representation letter:, audit templates.

A management representation letter is a structure letter composed by an organization’s outer reviewers, which is marked by a senior organization the board. The letter verifies the precision of the financial reports that the organization has submitted to the examiners for their investigation. For samples of different letters, check out our collection of more representation letter templates on our official website template.net that you can use. You may also see more different types of representation   letters in Word from our official website template.net.

• Generally, the letter expresses that the entirety of the data submitted is precise and that all material data has been uncovered to the reviewers. The evaluators utilize this letter as a feature of their review proof. View a wider selection of Creative Letter   Templates right here.
• The letter likewise moves some fault to the board, on the off chance that things being what they are, a few components of the examined fiscal summaries don’t reasonably speak to the money related outcomes, monetary position, or incomes of the business.
• Consequently, the explanations that the reviewer remembers for the letter are very expansive extending, enveloping each conceivable zone in which the board’s failings could prompt the issuance of off base or deceiving budget summaries. Looking for more insights? Dive into our blog post about representative cover letter templates.
• The executives are answerable for the best possible introduction of the budget summaries as per the pertinent bookkeeping system. Find more Letter Format Templates by visiting this link.
• Every single money related record have been made accessible to the examiners
• All governing body minutes are finished
• The board has made accessible all letters from administrative organizations concerning monetary revealing resistance
• There are no unrecorded exchanges
• The net impact of every uncorrected misquote is insignificant
• The supervisory crew recognizes its duty regarding the arrangement of budgetary controls. You can also find a wider variety of management representation letters in Pdf format on our official website at template.net.
• All related gathering exchanges have been revealed; Explore a variety of Professional Letter Templates here.
• Every unforeseen risk have been revealed;
• All unasserted cases or evaluations have been revealed;
• The organization has revealed all liens and different encumbrances on its advantages;
• Every material exchange have been appropriately recorded;
• The board is liable for frameworks intended to distinguish and forestall extortion;
• The board has no information on misrepresentation inside the organization;
• The budget reports comply with the relevant bookkeeping system.
• Evaluators regularly don’t enable the administration to roll out any improvements to the substance of this letter before marking it, since this would successfully lessen the risk of the executives. Check out more Personal Letter Templates available here.
• An inspector regularly won’t give a supposition on an organization’s fiscal summaries without first getting a marked administration portrayal letter.
• An administration portrayal letter is a particular letter composed by an organization’s outer reviewers and afterward marked by the senior organization the executives. The date of the archive can’t be later than the date at which the review wraps up. The letter confirms that the data gave is precise and revealed to the examiners.
• On the off chance that for reasons unknown it’s discovered that a few components of the evaluated budget summaries are not exact then evaluators should lead further examinations. As you can envision, to state there’s a ton of strain to hit the nail on the head the first run-through is putting it mildly. You can also discover a greater variety of management representation  letters in Pages on our official website, template.net.
• All dangers, vulnerabilities, liens, encumbrances, unrecorded and recorded exchanges, legitimate infringement, unexpected liabilities, and unasserted cases or evaluations have been sufficiently recorded and uncovered.
• Every money related record has been made accessible to the evaluators. You may also see more on Business Letter templates here.
• All board and investor meeting minutes have been made accessible to the examiner.
• The executives are liable for frameworks intended to recognize and forestall extortion and have no information on misrepresentation inside the organization.
• The executives don’t expect to have changes that will affect the estimation of organization resources or liabilities.
• The board is answerable for the correct introduction of the fiscal reports by the relevant bookkeeping structure and the group recognizes its duty regarding the arrangement of money related controls.
• The board has made accessible all letters from administrative offices concerning money related detailing rebelliousness. For the best experience, explore a wider range of management representation  letters in Google Docs directly from our official website, template.net.

More in Audit Templates

Contract management report template, printable crm template, achievement report hr template, technical report template, report cover template, employee report template, digital marketing agency link building strategy report template, digital marketing agency a/b testing results report template, digital marketing agency client progress review report template, water management report template.

• 3+ Audit Debrief Templates in PDF | MS Word
• 11+ Audit Confirmation Templates in MS Word | Excel | PDF
• 11+ Audit Corrective Action Plan Templates in MS Word | Excel | PDF
• 10+ Free Audit Findings Report Templates in PDF | MS Word
• 11+ Asset Management Audit Templates in PDF | MS Word
• 6+ 401 K Audit Templates in PDF | MS Word
• 5+ Antibiotic Prescribing Audit Templates in PDF | Excel
• 6+ Audit Findings Letter Templates in PDF | MS Word
• 10+ Audit Exception Report Templates in PDF | MS Word
• 15+ Audit Confirmation Letter Templates in MS Word | PDF
• 10+ Audit Engagement Checklist Templates in PDF | MS Word
• 11+ Audit Committee Report Templates in PDF | MS Word
• 11+ Audit Executive Summary Templates in PDF | MS Word
• 10+ Audit Engagement Letter Templates in PDF | MS Word
• 10+ Audit Committee Meeting Agenda Templates in PDF | MS Word

File Formats

Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.

2023 Exempt Organization Engagement Letter – Form 990

An engagement letter is a contract that establishes the services a practitioner will provide to his or her clients. Each engagement requires careful consideration to address its particular circumstances.

We’ve provided a sample engagement letter to use with Form 990, Return of Organization Exempt From Income Tax , and other state non-profit tax returns. Tailor the template to your clients’ needs.

All engagement letters and the Terms and Conditions Addendum contained in the AICPA Tax Section’s Annual Tax Compliance Kit

Download the 2023 Exempt Organization Engagement Letter – Form 990

File name: 2023-exempt-organization-engagement-letter-form-990.doc

Reserved for Tax Section Members and NFP Section Members

Already a tax or nfp section member, log in with your account, not a tax or nfp section member.

Discover the benefits of:

Exclusively for

Mentioned in this article, related content.

This site is brought to you by the Association of International Certified Professional Accountants, the global voice of the accounting and finance profession, founded by the American Institute of CPAs and The Chartered Institute of Management Accountants.

CA Do Not Sell or Share My Personal Information

Gag orders are still hampering federal whistleblowers, agency warns

Donald Trump is no longer president, but Washington’s problems with nondisclosure agreements remain.

The Office of Special Counsel (OSC) is forcefully instructing federal agencies and employees that NDAs do not supersede whistleblower rights.

But first, when writing about the OSC, an agency with a confusing name that’s led by special counsel Hampton Dellinger, it’s important to note that this is not a Justice Department special counsel, like Jack Smith , who is prosecuting Trump’s classified documents case. OSC says its “primary mission is to safeguard the merit system by protecting federal employees and applicants from prohibited personnel practices … especially reprisal for whistleblowing.”

That’s why OSC, an independent investigative and prosecutorial agency, is keen to let government folks know what NDAs can’t do. In the past 12 months, the office has secured more than 25 actions from agencies to correct anti-gag order violations.

The Whistleblower Protection Enhancement Act is clear. “No agency can seek, through an NDA or otherwise, to chill such communications,” according to an OSC statement last week. The headline on the statement was emphatic: “OSC Strongly Enforces the Prohibition Against Employee Gag Orders that Chill Whistleblowing.”

NDAs are not prohibited, but agencies must inform employees that those agreements do not prevent them from reporting waste, fraud and abuse. “NDAs must inform federal employees of their overriding right to communicate with Congress, Inspectors General, and OSC,” the OSC statement said.

Agencies use gag orders because “controlling the flow of information is the key to avoiding accountability that’s unwanted,” said Tom Devine, legal director of the nonprofit Government Accountability Project that works with whistleblowers. Gag orders are “more destructive than retaliation [against whistleblowers],” he added, “because the information never gets out in the first place.”

Gag orders also have “huge consequences for the public, who need to know that our government is … serving in the people’s best interest above all,” said Joe Spielberger, policy counsel for POGO, the Project on Government Oversight. Among several Trump administration examples, Spielberger cited the 2019 “Sharpie-gate” controversy , when federal weather officials “were pressured by political appointees to undermine their own forecasters after Trump doctored the Hurricane Dorian map.”

One of the cases cited by OSC involves a Justice Department agency that gagged National Association of Immigration Judges (NAIJ) union leaders.

In a February email to New York-based immigration Judge Mimi Tsankov, the union president, and Judge Samuel Cole, the union’s executive vice president in Chicago, Sheila McNulty, the chief immigration judge in the department’s Executive Office for Immigration Review (EOIR), said they are prohibited from making public statements “without supervisory approval and any Speaking Engagement Team review your supervisor believes necessary.”

That warning came after Tsankov in October told a Senate Judiciary immigration subcommittee hearing that “Democrat and Republican administrations share the failure of the DOJ’s immigration court management,” saying “immigration courts have faced structural deficiencies, crushing caseloads, and unacceptable backlogs for many years.” Matt Biggs, president of the International Federation of Professional and Technical Engineers (IFPTE), NAIJ’s parent union, cited Tsankov’s congressional testimony as an example of giving “judges a voice” that’s now silenced.

McNulty referred to a controversial and hotly contested Trump administration action that led to the decertification of the immigration judges’ union, when she wrote “any bargaining agreement … that may have existed previously is not valid at present.”

On Nov. 2, 2020, the day before Trump, who waged war on federal unions, lost his reelection bid, the Federal Labor Relations Authority ruled that immigration judges are management employees precluded from union representation. That means, according to McNulty, they cannot speak out as union leaders because she considers their association to be a “group” and not a recognized labor organization. IFPTE has asked the Biden administration to reverse the immigration review office’s “inappropriate and misguided application of the agency speaking engagement policy.”

This must be an embarrassment to proudly pro-union President Biden , who reversed other anti-federal labor organization policies put in place under Trump.

McNulty’s action drew heated reaction from three Republicans who often vote against union interests. “The Committee takes seriously the Department’s effort to silence immigration judges,” wrote Reps. Jim Jordan (R-Ohio) and Tom McClintock (R-Calif.), chairmen of the House Judiciary Committee and its immigration subcommittee, respectively. In a letter to the attorney general, Sen. Chuck Grassley (R-Iowa) said any effort “to silence immigration judges … is absolutely unacceptable.”

Grassley also noted that McNulty’s order “failed to include the anti-gag provision as required by law.”

That’s a key point in the Office of Special Counsel’s notice.

“One of the bright lines,” Dellinger said during a telephone interview, “is that no federal workplace policy, including a nondisclosure agreement, can run afoul of an employee’s right to report wrongdoing or public safety threats to Congress, inspectors general or my office.” To that list of reporting venues, an OSC video adds “and the media.”

Without naming any individual or the immigration judges’ union, Dellinger’s press release criticized Justice’s immigration review office for “violations of the anti-gag provision.” Following the OSC recommendations, the office agreed to email employees a revised policy that clarifies that they are not restricted from whistleblowing and to hold training sessions by the special counsel’s office.

Nonetheless, during separate phone calls, Tsankov and Cole refused to discuss their situations. “I’m just not allowed to speak to you,” said Cole, echoing Tsankov.

In recent months, the OSC has also successfully pressed other agencies to back down from NDA policies hampering employees.

OSC said the Defense Commissary Agency, which operates military groceries, agreed to withdraw “a policy requiring all employees to channel ‘any and all’ workplace issues through their supervisor and forbidding any contact with upper management without use of the chain of command.”

And the Department of Veterans Affairs, according to Dellinger’s office, agreed to rescind an employee’s letter of reprimand that “did not contain the mandated language concerning whistleblower rights and improperly penalized the employee for not using official channels when he questioned agency practices.”

Although the VA has a history of complaints from whistleblowers, VA press secretary Terrence Hayes said in response that a “top department priority is … building a culture where every employee feels empowered and unafraid to raise concerns without fear of reprisal. We welcome feedback here at VA — it makes us better — and we encourage employees to come forward with their concerns without fear of reprisal.”

He also said the “number of VA whistleblower retaliation cases reviewed by the Office of the Special Counsel has decreased by 42 percent since 2018.”

Justice Department and Defense Commissary Agency officials did not respond to requests for comment.

Biggs called the Justice Department office’s policy “an outrageous act of censure and an attack on freedom of the press and transparency.”

“Intentionally or not,” he added, the directive “resulted in a not-so-subtle message to rank-and-file immigration judges to think carefully before talking to congressional lawmakers as whistleblowers or otherwise.”