Financial audit checklist non-profit

Its National Checklist Day!

In NY state, 501[c]3s with budgets between $250,000-750,000 are required to undergo an annual independent review, while organizations with budgets over $750,000 are required to undergo an annual independent audit. While each states requirements vary and auditors each have their own custom documentation lists, weve composed a list of some of the most commonly requested materials.

Annual Audit Checklist for 501[c]3 Organizations

1. Clean and prepare for auditor:

• Accounts receivable schedule

• Accounts payable schedule
• Depreciation schedules
• Expense account analyses requested by your auditor
• Schedules of prepaid expenses for upcoming fiscal year
• List of fixed asset additions and dispositions
• Investment activities

2. Reconciliation of all bank/credit card accounts

3. Gather:

• Bank statements, credit card statements, reconciliation reports, and canceled checks
• Payroll records and tax returns showing withholding for employees
• IRS Form 1099s for independent contractors and consultants
• Invoices and paid bills [receipts]
• Receipts for credit card transactions
• Contracts, award letters, and copies of checks deposited into the account. Oftentimes auditors only request documentation for deposits $5000 or greater.
• Financial records listing transactions and accounts over the audit period

4. Have organized and readily available all:

• Corporation or organizational documents
• Policies related to financial management and controls
• Tax exemption letters
• Board or committee meeting minutes
• Grant proposals, commitment letters and contracts with funding sources
• Final reports submitted to funders
• Contracts with vendors
• Leases
• Equipment maintenance agreements
• Insurance policies [office contents, professional liability, etc.]

Download Printable Checklist

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