Annual audit / financial review checklist

For the review committee: two or three people who are not authorized check signers and didn't handle the money. Reviewers note findings. They don't fix the books themselves.

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Annual audit / financial review checklist

Group: ______________________________   Fiscal year / period: ________________

Before you start

  1. Committee members are not check signers, are not the treasurer, and don't live with the treasurer.
  2. You have every bank statement for the period, plus the first statement after the period ends.
  3. You have the treasurer's ledger or software export, monthly reports, the adopted budget, and meeting minutes.
  4. You have reimbursement and check requests with receipts or invoices, and deposit records or cash count sheets.

Bank & reconciliations

  1. The beginning balance equals last year's ending balance from the prior review.
  2. Each month's reconciliation matches the bank statement, and someone other than a signer reviewed it.
  3. The year-end book balance matches the bank, with outstanding checks and deposits listed. They cleared on the next statement.
  4. Every check number is accounted for, including voided checks, which are kept and marked VOID.

Money out

  1. Each payment traces to a written request, an itemized receipt or invoice, and authorization in the budget or minutes.
  2. Each check or electronic payment has two different authorized approvals, and the payee was not an approver.
  3. Payments to officers or their relatives were approved by someone else.
  4. No cash withdrawals, no payments to personal accounts, and no debit card use the board didn't authorize.

Money in

  1. Each deposit traces to a cash count sheet signed by two counters, or to a processor report.
  2. Deposits were made promptly after events. Long gaps are noted as a finding.
  3. Payment app and online store totals (gross, fees, refunds) match the transfers to the bank.

Budget, compliance & controls

  1. Actual totals were compared with the adopted budget, and overages were approved or ratified.
  2. Restricted or earmarked funds were spent only for their purpose.
  3. The required federal annual return for the prior year was filed. IRS Form 990-N info
  4. State filings are current, if they apply. See state links.
  5. Signers on file at the bank match the current officers. Former officers have no access to accounts or online banking.
  6. Insurance, if the group carries it, is in force.

Report

  1. Every exception is listed as a finding, with a recommendation.
  2. The committee signed the report, and it was presented to the board or membership and recorded in the minutes.

Sign-off

Reviewer 1 (print / sign / date): ____________________________________________

Reviewer 2 (print / sign / date): ____________________________________________

Reviewer 3 (print / sign / date): ____________________________________________

Outgoing treasurer acknowledged findings (sign / date): __________________________

General organizing checklist, not legal, tax, or accounting advice. Your bylaws, bank, school or district, and state or national organization may have extra requirements. Official sources are on the state links page.