Page 25 - BusinessWest April 18, 2022

The Art of Being Ready
Best Practices to Prepare for Your Nonprofit’s Year-end Audit
By Chelsea Russell
Each year goes by faster than the last, and before you know it, your nonprofit’s year-end
audit is right around the corner. Collectively, we can all agree that
the audit process should be quick and easy, but we often face audits that never seem to end. Have you ever wondered what you can do to make an audit go smoothly and be as effi- cient as possible so that deadlines can be met? This is a great opportunity for you to learn about how your organiza- tion can have a more efficient audit process and how your organization can continue to improve procedures surrounding audit preparation.
As an auditor who is involved in many not-for-profits, I’d like to share some best practices to help you pre- pare for your year-end audit.
Have a Planning Meeting
It’s never too early to start reaching out to your auditor. Having a planning meeting with your auditor a month before your organization’s year end is encouraged. This meeting will serve many purposes, such as reminding everyone of specific due dates, dis- cussing significant activity over the last year, and deciding on a start date for the audit based on your readiness.
Establish a Timeline
Once you and your auditor have discussed due dates and a start date for the audit, you should start prepar- ing for the audit early by asking for your auditor’s data-request list. Review the list with your auditors, ask for what items are priority for testing pur- poses, and establish an internal due date for your team. As you and your team start preparing information for the audit, have regular check-ins with your auditor as you approach each due date and the start of the audit.
Reconcile All Significant Trial Balance Accounts
Prior to starting the audit, all sig- nificant trial balance accounts should be reconciled, and you should double- check that the supporting documen- tation agrees with the trial balance accounts. This is a great opportunity to make sure you have the necessary internal control procedures in place, and may present an opportunity for improvement. To prevent a delay in the audit, the earlier you can start your year-end closing process and reconciliation of accounts, the sooner you can review the audit support for potential errors before handing docu- ments over to the auditors.
Compliance Requirements
The level of compliance require- ments you have to adhere to depends on the funding your organization receives (state, federal, grants, or
Audit
Continued on page 27
“Collectively, we can all agree that the audit process should be quick and easy, but we often face audits that never seem to end.”
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Estate Settlement Tasks
• Entering the Will into probate, and handling other legal requirements.
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