John:I don't have bev's book in front of me, although I do own that same edition, and I believe bev is referring to the concept of a pass-through agency. The pass-through agency becomes the actual applicant. They receive the grant funds and are ultimately responsible for services and reports. They form a relationship with another group, perhaps one without non-profit status, such that they handle the fiscal accounting, reporting and billing while the other group handles the actual program services/work and prepares those related reports. So one group handles the money while the other handles the direct service.
"Does a non-profit need an audited annual financial statement to apply for grants from foundations, corporations, and the government."
Some foundations and other funder types do not request an audited financial statement as part of the application process so a non--profit may not always need it. But...most foundations and government agencies DO request a copy of the most recent audit and it is a good practice to have an annual audit performed.
