Non-Profit accounting: Vendor Files
As a nonprofit auditor in North Carolina I often encounter incomplete vendor files and vendor on-boarding procedures. A file should be set up for each vendor the organization uses to procure goods or services. A miscellaneous file is acceptable for vendors not used on a regular basis. The vendor invoices can be filed alphabetically in […]
Nonprofit Statement of Functional Expenses Allocation Methods, by Sherri Rose, Nonprofit Auditor
If you are a nonprofit organization in North Carolina you may be required to prepare a statement of functional expenses. The statement of functional expenses is not required for every non-profit organization; however, it is commonly included in the financial statements. Certain Grants may include language requiring expenses to be reported by functional classification. As […]
Not for Profit Organization Board of Directors – Audit Committee
The board is responsible for their own policies and procedures, like having all board members sign a related parties disclosure and code of conduct. The board is also responsible for establishing the audit committee and defining the committee’s responsibilities. The audit committee is comprised of members of the board of directors and is answerable directly […]
How to Prepare for the Year End Audit
Once year end hits, the clock starts ticking. Most audits required by regulatory agencies or grantors, impose a deadline for completion of the audit. The most stringent deadline is 90 days from year end. Other organizations may have the annual board meeting as the deadline. Whatever the case, there are procedures you can perform to […]
Am I Required to Have an Audit?
The first question I ask as a nonprofit auditor when receiving a request for an audit quote is “Why do you need an audit?” Audits can be required by law, by a grantor, by the organizations by-laws, or some other requirement. There is no audit requirement based on the mere fact an organization is a […]
