It’s National Checklist Day!
In NY state, 501(c)3’s 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 state’s requirements vary and auditor’s each have their own custom documentation lists, we’ve 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.)