Audits can cause anxiety among staff and executive leadership. Here are two tips from our member tip sheet – “15 Tips for Surviving an Audit.” To see all 15 tips, you must be an NSPN member with the organizational development package. If you have this package, check out the full tip sheet by logging into your membership account at www.nspnetwork.org and accessing the NSPN Resource Center!
- Know the users of your external audited financial statements and why your organization requires an audit. Your audited financial statements could be required by your organization’s by-laws and be used exclusively for internal purposes. They could also be intended for external use by contributors, for securing loans or collateral agreements with banks, or they may be fulfilling certain regulatory filing requirements as a result of annuity programs, federal fund resources, or state solicitations, etc. Knowing the intended use will help you target your auditing activities.
- Do your homework: Choose the right auditor for your organization’s needs. Nonprofit organizations come in all shapes and sizes, with different accounting and reporting needs. Some organizations have simple structures operating only one or two programs, small staffs, and predictable transaction streams. Others can be extremely complex with multiple needs and issues. Auditors are not a “one size fits all” market, hence the variance in their pricing. Organizations would benefit from doing a little research and selecting from a pool of auditors that uniquely fits their needs. You may even save some money.
If you’re interested in becoming an NSPN member, please contact Katie Carter, Director of Research, Education and Public Policy, at 502.635.3660 or firstname.lastname@example.org.