Non-Profit Hot Topics: Two Sides of the Compliance Audit Coin
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welchllp.com TWO SIDES OF THE COMPLIANCE AUDIT COIN NON-PROFIT HOT TOPICS:
Transcript of Non-Profit Hot Topics: Two Sides of the Compliance Audit Coin
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TWO SIDES OF THE COMPLIANCE AUDIT COIN
NON-PROFIT HOT TOPICS:
GROUND RULES
• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback• Your participation represents acknowledgement that we are recording• Tweet questions & comments to: #WelchNPO
Windows Mac Tablet
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Garth Steele, CPA, CAAudit & Indirect Tax [email protected]
Christa Casey, CPA, CAPartner & Director of the Not-for-Profit [email protected]
PRESENTERS
Karen Dickson, CPA, CADirector of Government Services & Senior [email protected]
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WHAT WE’LL COVER TODAY
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• Which issues are on the government’s radar right now
• Financial statement auditor perspective
• Factors leading to a successful contribution audit
• Horror stories witnessed
• Q&A
THE GOVERNMENT’S RADAR
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• In-kind contributions
• Time sheets
• Travel costs
• “In country” expenses
FINANCIAL STATEMENT AUDITOR PERSPECTIVE
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Contribution audits vs. financial statement audits• Scope of the audit
• General purpose vs. specific purpose
• Materiality
• Framework used (compliance vs. fair presentation)
FINANCIAL STATEMENT AUDITOR PERSPECTIVE
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Types of special reports often used• In accordance with GAAP of funder’s accounting policies
• In compliance with agreement
• Results of applying specified auditing procedures
FINANCIAL STATEMENT AUDITOR PERSPECTIVE
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Supplemental financial statement schedules• Subset of information derived from financial statements
• Not the same as a contribution audit
• Does it meet funder requirements?
HOW TO: “SUCCESSFUL” CONTRIBUTION AUDITS
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Be organized • Reconcile amounts
• Keep copies of approvals and get them in writing
• Consider requesting/conducting initial site visit
or audit readiness exercise
HOW TO: “SUCCESSFUL” CONTRIBUTION AUDITS
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• Ask the funder or the auditors if you’re uncertain about
what documentation is acceptable Scanned documents
• Be upfront about errors and omissions
REAL-LIFE HORROR STORIES
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• Amounts claimed based on budget
• Sample not prepared
• Irreconcilable differences
QUESTIONS
• Tweet questions & comments to: #WelchNPO
Windows Mac Tablet
welchllp.com
Garth Steele, CPA, CAAudit & Indirect Tax [email protected]
Christa Casey, CPA, CAPartner & Director of the Not-for-Profit [email protected]
ASK THE EXPERTS
Karen Dickson, CPA, CADirector of Government Services & Senior [email protected]
welchllp.com
