Nonprofit Audit Guidelines

on Aug 13, 2014 in Sports Teams | 0 comments

Audit Guidelines for Non-Profits

Get Started With Non-Profit Your Financial Review or Audit

If you do not have a national organization that provides you with Audit guidelines, here are some ideas on how to get started:

  • Find three members to form an Audit Committee. They cannot have been signers on the bank account (little conflict of interest there). They will need to set aside two or three hours – or more if they run into problems -to do a thorough job.
  • Establish a mission: The Audit Committee’s mission is to confirm, to the best of its ability, that the Financial Reports prepared by the Treasurer accurately reflect the financial status of the organization. This is not a witch-hunt!
  • Set a time and place: Determine a time and place where the Audit Committee can meet, during which time the Treasurer is available to answer questions. It is best if the Treasurer is not present during the audit. The Audit Committee needs to review materials as they see fit, not as the Treasurer decides to present them. You will need room to spread out documents and reports. You may require computer and possibly Internet access.
  • Assemble documentation: This is the Treasurer’s responsibility. The Committee will need to have available:
    • The approved Budget (if any),
    • All Treasurer’s reports for the period,
    • All bank statements for the period,
    • Physical records of money received and corresponding bank deposit books,
    • Physical records of checks written and corresponding bills or receipts,
    • Any voided checks, and
    • Records of any other withdrawals from the bank.

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