New for FY 2026-27: under AB 143, your WIC §4652.5 audit now affects your 10% Quality Incentive rate. See what changed →

WIC §4652.5 Compliance

Regional Center Vendor
Audits & Reviews

WIC §4652.5 audits, reviews, compilations, and compliance advisory for California Regional Center vendors. Specialist CPA firm. Serving all 21 Regional Centers from Bay Area offices.

AICPA Member CalCPA Member All 21 California Regional Centers
WIC §4652.5 — The Law That Applies to You

California Welfare and Institutions Code §4652.5 requires that all vendors receiving payments from a Regional Center for services rendered to individuals with developmental disabilities must obtain an independent audit or financial statement review of their financial records — conducted by an independent CPA.

Most CPA firms do not understand the rules. They miss the 85/15 program spending test. They classify expenses incorrectly. They miss deadlines. The result: management letter findings, payment delays, and — in the worst cases — placement on the DDS "Do Not Refer" list. Guidepost specializes in this compliance area. It is the only practice we run.

What We Do

Built for Regional Center Vendors.

Audits & Reviews
($500K+ in RC funding)

  • Independent CPA reviews for vendors receiving $500K–$2M
  • Full financial statement audits for vendors at $2M+
  • 85/15 program spending verification and DDS-format reporting
  • Internal control evaluation and management letter
Learn more →

Compilations & Bookkeeping

  • Compilation engagements for vendors below the review threshold
  • Audit-readiness bookkeeping: cleanup, reclassification, reconciliation
  • Year-round bookkeeping for vendors who want ongoing support
  • Fixed-asset schedules, payroll tie-out, monthly close
Learn more →

WIC §4652.5 Compliance Advisory

  • Response strategy when you receive a compliance letter
  • Multi-year catch-up engagements for past-due reports
  • Two-year exemption eligibility evaluation and submission support
  • 85/15 rule classification and documentation guidance
Learn more →

Which Do You Need — Audit or Review?

The type of engagement is determined solely by the amount of Regional Center funding you received during the State fiscal year (July 1 – June 30).

Review — Limited Assurance
$500,000 – $1,999,999
in Regional Center funding → Independent CPA Financial Statement Review (SSARS). Less extensive than an audit; faster and less costly.
Audit — Reasonable Assurance
$2,000,000 or more
in Regional Center funding → Full Financial Statement Audit. Highest level of assurance; involves detailed testing of transactions and internal controls.
Important: Thresholds are based on Regional Center funding only — not total organizational revenue. The measurement period is the State fiscal year: July 1 – June 30.

Full comparison: CPA review vs. independent audit →

21
Regional Centers covered
$500K+
Funding threshold where compliance begins
9 mo
Reporting deadline after fiscal year-end
4–6 wks
Typical audit turnaround
9-Month Reporting Deadline
Your independent audit or review report is due within 9 months of your fiscal year-end. For calendar-year vendors (FYE December 31), that deadline is September 30 of the following year. There are no extensions. Use our Deadline Calculator →
Our Difference

Why Vendors Choose Guidepost.

Specialist Focus

Regional Center vendor compliance is our practice area, not a side service. We understand WIC §4652.5, the 85/15 rule, Title 17, and DDS reporting standards because we work in them every day.

Fixed, Transparent Fees

Audit-ready financials without the Big Four price tag. Transparent quotes with no surprises — fixed fees agreed upfront before work begins.

Reliable Turnaround

Reviews in 2–4 weeks. Audits in 4–6 weeks. We respect your compliance deadlines and deliver on schedule. Late reports create vendorization risk — we do not let that happen.

Year-Round Partner

We are not just there at audit time. Call us in March about a rate question, or in July when your Regional Center sends a letter. We answer.

Frequently Asked Questions

Under WIC §4652.5, every California Regional Center vendor receiving $500,000 or more in annual funding must submit an annual CPA review or audit. The letter is most likely a reminder that your organization has outstanding reports for one or more fiscal years. See our step-by-step response guide →

A review provides limited assurance through analytical procedures and inquiries; an audit provides reasonable assurance through transaction testing and internal control evaluation. Your required level depends on RC funding — below $2M requires a review, $2M and above requires a full audit. Full comparison →

Per WIC §4652.5(c), Regional Centers must require resolution of any issues and can escalate to termination of vendorization. The DDS is notified of significant issues within 30 days. Under AB 143, non-compliance can also cost you the 10% Quality Incentive rate. Read the AB 143 guide →

Reports are due 9 months after your fiscal year-end. Once finalized, the report and management letter must be forwarded to your Regional Center within 30 days of receipt from the CPA. There are no extensions. Use our Deadline Calculator →

Possibly — and the rules differ by engagement level. At the review level, the RC must grant an exemption if your prior review found no issues affecting RC services. At the audit level, the RC must grant it if your prior audit resulted in an unmodified opinion (or a qualified opinion with immaterial issues). The exemption must be applied for. Full exemption guide →

WIC §4629.7 requires that vendors spend at least 85% of their Regional Center funding on direct program services and no more than 15% on administration. The 85/15 test is applied during every audit or review and reported to the RC. Full 85/15 guide →

Full WIC §4652.5 compliance guide →

Serving vendors across all 21 California Regional Centers. Offices in San Francisco (50 California Street, Suite 1500) and Walnut Creek / East Bay.

View the full RC Directory →

Get Compliant Today

Most RC vendors need 4–6 weeks. Don't wait until the deadline is 30 days away.

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