Checklist of Information Needed for Nonprofit Company Audits

ITEMS NEEDED FOR CONFIRMATIONS

Letterhead (enough so we may type the confirmations)

Enclosed are copies of the schedules you provided with the above information for last year. Any changes in current year information may be made on these copies and mailed back to us.

Confirmations will be prepared based on information supplied. They will then be sent out for signature. The signed confirmations will then be returned to me; I will mail them and receive the responses.

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General

1.  List of board members
2.  Any new leases on all property and equipment
3. Schedule of lease commitments, if available (for the next 5 years)
4. Trial balance as of year end.
5. Complete set of year end financial statements from your computer system including functional reporting, location reporting, etc.

Cash

1. Bank reconciliations for all accounts.
2. Year end bank statements or copies of updated passbooks for all accounts.

Investments

1. Reconciliations of all investment statements to general ledger.

Inventory

1. Inventory count sheets from each location.
2. Summary of inventory count sheets with agreement to general ledger.

Prepaids and other current assets

1. Schedules of all prepaid expenses.
2. Support for computation of prepaids. (i.e. copies of invoices, contracts, etc.)
3. Any other support of other current assets deemed necessary.

Fixed Assets

1. Schedule of fixed asset acquisitions for year.
2. Copies of invoices supporting acquisitions. 

NOTE: The originals will suffice if you do not want to photo the invoices. The originals will be returned to you.

Debt

1. Any information, statements, reconciliations, etc. for mortgage note payable as of year end.

Net assets

1. Reconciliation of beginning fund balances to financial statements.

Revenue and Receivables

1. Accounts receivable trial balances by type, agreed to general ledger (I will use your copy and return it if lengthy. If short, please run me a copy).
2.  Schedule of deferred revenue, as applicable.
   

Purchasing, Payables, and Disbursements

1. Accounts payable listing as of year end, agreed to the general ledger. Please provide me with a copy if the report is not too lengthy, i.e. under 20 pages.
2. Cash disbursements register for the first two months of the new year (to test accounts payable cutoff).

Payroll

1. All payroll tax returns for year.
2. Year end payroll service summaries.
3. If applicable, reconciliation of payroll service year end summary to the general ledger accounts.

Grants

1. Copies of all year end grant reports submitted to funding sources.
2. Access to workpapers which were done to prepare the grant reports. I do not want copies but will need to reconcile certain reports to the general ledger.
   

Interim or Planning Audit Fieldwork

In order to begin audit planning, we will meet with you for one day and focus on the following matters:

1. Compliance testing of transactions (cash disbursements, cash receipts).
2. Viewing of all grant documents for audit requirements.
3. Review of board minutes from for the year being audited.
4. A discussion with you regarding the overall financial status of the agency, any new grants or programs, funding source audits, major fundraising campaigns, etc.

In order to accomplish these tasks, please have the following documents/files available:

1. All grant documents including grant award, terms, requirements, and interim reports with supporting schedules.
2. Monthly accounting reports including:
   1. check registers
   2. receipt journals
   3. detailed general ledgers
   4. purchase journals
3. Paid vendor invoices.
4. Cash receipts and deposit support.
5. Board minutes.

Additionally, I enclose lists of information we will need for year end field work and for confirmations. Please contact me if you have any questions.

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