Is Your Non-Profit Ready for a Year-End Audit?

2023 has been flying by! Many non-profit organizations’ fiscal year-ends are just around the corner! There are several things you can do to ensure your non-profit is audit ready. It’s important to have tight internal accounting controls, organized financial processes and timely month-end closing and review of your financial statements. The best way to prepare, however, is to keep your CPA informed throughout the year. Remember to make a list of any account or business changes you have not discussed with your CPA to discuss at year-end.

The following guidelines will help you think like an auditor in preparation of your non-profit’s year-end audit.

Compare reconciliations, year-end statements, and other supporting schedules to general ledger balances to ensure that they agree. This should include, but is not limited to, the following:
- Accounts receivable and accounts payable aging schedules
- Amortization schedules for note agreements
- Bank and credit card reconciliations
- Investment account statements
- Supporting schedules for prepaid assets
- Donation or Revenue Records

Gather copies of any new or amended agreements for your CPA. These agreements should include, but are not limited to, the following:
- Lease Agreements
  - See GBM’s publication regarding the impact of the new leasing standard ASC 842 on Non-profits
- Notes Payable
- Notes Receivable

Additional preparations include:
- Complete any year-end request and inquiry lists provided by your CPA.
- Accumulate board and committee meeting minutes for the year
- Update Board of Director Listing for the year
- Evaluate your fixed assets for disposals and additions so you may appropriately update related depreciation schedules.
  - Make sure you have supporting invoices close by for new fixed asset additions that your CPA may have questions about (cost, date acquired, location used, VIN # or unique identifier for the new asset)
- Maintain documentation for journal entries and in-kind donations.
- Provide updated accounting policy and/or procedure documents to your CPA.
- Record donations to your non-profit, including in-kind.

Please do not hesitate to reach out to the accounting professionals at Gilliam Bell Moser LLP if you have any questions regarding information your CPAs may need for your non-profit organization’s audit.