SayPro Audit Coordination Checklist.

SayPro Audit Coordination Checklist:

Objective:
This checklist is designed to guide the SayPro team through the audit preparation process, ensuring that all necessary documentation is collected, organized, and ready for review by external auditors. The checklist provides a comprehensive outline of steps to follow, ensuring the audit process is efficient, transparent, and accurate.

1. Pre-Audit Preparation:

• Identify Audit Requirements:
  • Review audit scope and specific requirements from external auditors.
  • Confirm the timeline and deadlines for audit documentation submission.
  • Ensure the audit team understands which areas of fundraising (e.g., donations, sponsorships, crowdfunding) will be the focus.
• Assign Internal Audit Lead:
  • Designate a primary point of contact for coordinating the audit preparation process.
  • Ensure the audit lead has access to all necessary resources and documentation.
• Internal Team Coordination:
  • Meet with fundraising, finance, legal, and other relevant teams to outline their responsibilities.
  • Establish a schedule for internal meetings to review audit documentation status.
• Audit Documentation Overview:
  • Create an initial document list and review the requirements for all fundraising-related documentation.
  • Identify any missing or incomplete documents and plan for gathering them before the audit.

2. Financial Documentation:

• Prepare Financial Statements:
  • Income Statement: Ensure the statement reflects total fundraising revenue (donations, sponsorships, crowdfunding, events, etc.).
  • Balance Sheet: Confirm accurate accounting for all assets, liabilities, and equity, including any restricted funds.
  • Cash Flow Statement: Ensure it accurately reflects the movement of funds related to fundraising activities.
• Reconcile Bank Accounts:
  • Gather and review bank statements for all accounts associated with fundraising.
  • Ensure reconciliation of all fundraising deposits, withdrawals, and transfers between internal records and bank statements.
• Prepare Fund Allocation Reports:
  • Verify how funds were allocated between restricted and unrestricted categories.
  • Ensure all restricted funds are allocated in accordance with donor agreements.

3. Fundraising Documentation:

• Donation Records:
  • Compile a complete and organized list of all donations, including:
    • Donor names, amounts, and dates of donation.
    • Documentation for tax purposes (e.g., acknowledgment letters, receipts, etc.).
  • Verify all donations are categorized correctly (e.g., one-time vs. recurring donations, restricted vs. unrestricted).
• Crowdfunding Details:
  • Prepare reports from crowdfunding platforms showing:
    • Total funds raised, platform fees, and net proceeds.
    • Specific breakdown of donor contributions and any campaign-specific documentation.
  • Reconcile crowdfunding proceeds with SayPro’s financial records.
• Sponsorship Agreements:
  • Gather signed sponsorship agreements for any events or projects supported through fundraising.
  • Ensure agreements include payment details, terms, and deliverables.
  • Confirm all pledged funds have been received and are reflected in the financial records.

4. Event Fundraising Documentation (if applicable):

• Event Income and Expense Reports:
  • Prepare detailed income reports for each fundraising event (e.g., ticket sales, donations).
  • Gather documentation for all event-related expenses (e.g., venue rental, food, staff costs).
  • Ensure that all event expenses align with event revenue for an accurate profitability report.
• Event Documentation (if applicable):
  • Include contracts, vendor agreements, and marketing materials.
  • Confirm that event income and expenses are properly categorized and tracked in the financial system.

5. Compliance and Legal Documentation:

• Tax and Regulatory Compliance:
  • Verify that all fundraising activities comply with relevant tax laws and regulations (e.g., IRS Form 990, charitable donation rules).
  • Ensure that SayPro’s nonprofit status and fundraising activities align with local and national laws.
• Fundraising Licenses and Permits:
  • Ensure all required licenses or permits for fundraising activities are up to date and included in the documentation package.
  • Review any special regulations that may apply to specific types of fundraising, such as online crowdfunding or raffles.

6. Documentation Organization:

• Create an Audit Documentation Package:
  • Organize all the documents collected into a well-structured, easily accessible package.
  • Ensure that all financial statements, donation records, event reports, and sponsorship agreements are clearly labeled and easy to navigate.
• Check for Missing or Incomplete Documents:
  • Review the audit documentation package to ensure that all necessary documents are present.
  • If any documents are missing or incomplete, work with the appropriate teams to obtain them before the audit begins.
• Ensure Proper Documentation for Restricted Funds:
  • Verify that all restricted donations have accompanying documentation outlining the intended use of the funds.
  • Ensure that the use of these funds aligns with donor intent and is reflected in the financial reports.

7. Pre-Audit Review:

• Internal Review of Audit Documentation:
  • Conduct a final internal review of all documents and records in preparation for the external audit.
  • Ensure that all documentation is complete, accurate, and reconciled against the financial records.
• Discrepancy Identification and Resolution:
  • Identify any discrepancies between fundraising records and financial statements.
  • Work with internal teams (finance, fundraising) to resolve these discrepancies before the audit begins.
• Compliance Check:
  • Double-check that all fundraising activities, donations, and financial reporting comply with relevant regulations, tax laws, and SayPro’s internal policies.
  • Ensure all necessary legal and compliance documents are included in the audit package.

8. External Auditor Communication:

• Coordinate with External Auditors:
  • Share the prepared Audit Documentation Package with external auditors well in advance of the scheduled audit.
  • Confirm the audit timeline, expected review dates, and any specific information or clarification that auditors may require.
• Prepare for Auditor’s Questions:
  • Prepare responses to potential questions auditors may have, particularly regarding discrepancies, restricted funds, or specific donor engagements.
  • Designate a team member to address any follow-up inquiries or requests for additional documentation during the audit.

9. Post-Audit Actions:

• Track and Address Audit Findings:
  • After the audit is complete, review any findings or recommendations provided by the auditors.
  • Coordinate with relevant departments to implement corrective actions and improve fundraising processes based on the audit feedback.
• Internal Reporting to Senior Leadership:
  • Provide a summary report of the audit process and any key findings to senior leadership.
  • Share insights and recommendations for improving fundraising management and financial reporting.

Conclusion:

The SayPro Audit Coordination Checklist ensures that all steps in the audit preparation process are followed, and all necessary documentation is properly gathered and organized for review. By systematically working through this checklist, SayPro can ensure a smooth, transparent, and efficient audit process, providing external auditors with the required documentation and addressing any discrepancies or issues prior to the audit. The ultimate goal is to maintain the highest level of accountability, transparency, and compliance in fundraising activities.