Consultance Accounting Services
Not-for-Profit Bookkeeping Performance Survey

How to Assess Your Organization’s Risks Regarding its Accounting Function, Internal Controls and Year End Audit Preparedness

The importance of having accurate financial statements and records is critical to the long term viability and success of your organization. Furthermore, the requirement to have strong internal controls and being prepared for your year-end audit are also critical to the overall success of your organization. Yet many organizations do not invest the proper amount of money and resources needed to satisfy their board requirements or properly prepare for the year-end audit.

And the risks are real: a poor audit opinion could put you at risk with your board as well as current and potential new donors to your organization.

Answer these questions, and then check your scores to see your organization’s risk level.

1. Does your organization have a comprehensive annual budget that includes sources and uses of funds for all aspects of operations?  Yes  No  I don’t know
2. Are you confident in the accuracy of your financial statements?  Yes  No  I don’t know
3. Does the finance committee have a detailed understanding of the annual budget?  Yes  No  I don’t know
4. Does the board of directors formally authorize the annual budget and revisions to the budget?  Yes  No  I don’t know
5. Are you financial statements prepared correctly for accrual accounting requirements? Prepaid Expenses, Accrued Costs, Deferred Revenues?  Yes  No  I don’t know
6. Does your organization have proper internal controls in place to satisfy your year-end audit requirements?  Yes  No  I don’t know
7. Do you regularly compare budgeted Income and Expenditures with actual Income and Expenditures?  Yes  No  I don’t know
8. Does the organization have written policies and procedures for fiscal operations including procedures for processing payroll, purchases, accounts payable, accounts receivable, etc?  Yes  No  I don’t know
9. Are actual processing activities consistent with written policies and procedures?  Yes  No  I don’t know
10. Are you segregating “Restricted” vs. “Unrestricted” assets and tracking the related expenditures correctly?  Yes  No  I don’t know
11. Do you have a process in place to properly allocate functional expenses correctly?  Yes  No  I don’t know
12. Are you able to properly track In-Kind donations made to your organization to satisfy your year-end audit requirements?  Yes  No  I don’t know

Based on your answers on the previous pages, use the chart below to rate your organization’s Bookkeeping Performance Score.

If you answered “No,” or “I don’t know,” to: Your Not-for-Profit Organization’s Bookkeeping Is:
9 or more questions

LOW PERFORMANCE – VERY HIGH RISK

Your organization is likely to have serious risks in multiple areas regarding its accounting function, internal controls and year-end audit requirements.

Consultance Accounting Services recommends that you begin immediately exploring ways to understand and reduce your organizational risk, including an assessment of your Accounting Function, Internal Controls and Year-End Audit Preparedness.

6 – 8 questions

INCONSISTENT PERFORMANCE – HIGH RISK

Your organization could have significant risks regarding its accounting function, internal controls and year-end audit requirements.

Consultance Accounting Services recommends that you begin exploring ways to reduce your organizational risk, including an assessment of your Accounting Function, Internal Controls and Year-End Audit Preparedness.

3 – 5 questions

ACCEPTABLE PERFORMANCE – MEDIUM RISK

Your organization could be at risk regarding its accounting function, internal controls and year-end audit requirements.

Consultance Accounting Services recommends that you explore ways to reduce your organizational risk, including an assessment of your Accounting Function, Internal Controls and Year-End Audit Preparedness.

Fewer than 2 questions

HIGH PERFORMANCE – AVERAGE RISK

Your organization has achieved a good start towards understanding and managing its accounting functions, internal controls and year-end audit requirements.

Consultance Accounting Services recommends that you continue to explore how to reduce your organizational risk, including an assessment of your Accounting Function, Internal Controls and Year-End Audit Preparedness.

Questions about your score? Contact Consultance at info@consultancellc.com, visit www.consultancellc.com/about-consultance/contact-us or call 301-301-1564301-301-1564.

Presented by Consultance Accounting Services
www.consultancellc.com
301-301-1564301-301-1564