SayPro Troubleshoot and Resolve Issues to further expand the process, covering every necessary step in preparation for a thorough audit.

SayPro Troubleshoot and Resolve Issues:

Before the audit process begins, it is essential to conduct a comprehensive review and resolution of any discrepancies in fundraising records or financial reports. This is a critical step to ensure accuracy, completeness, and alignment of all financial documentation. Below are the detailed steps involved in identifying, troubleshooting, and resolving issues:

1. Review and Reconcile Fundraising Records:
   • Donation and Sponsorship Verification:
     • Audit all donation receipts and sponsorship agreements to ensure they are properly logged in the accounting system. Cross-reference these with bank deposits and online transaction platforms (such as PayPal, crowdfunding platforms, etc.) to ensure the amounts match.
     • Investigate and resolve any discrepancies between pledges, actual donations, and bank deposits. This may involve contacting sponsors or donors for verification or clarification of pledged amounts or disbursements.
   • Crowdfunding Campaigns:
     • Review the financial reports from any crowdfunding platforms, ensuring that all contributions are accurately recorded in SayPro’s fundraising records.
     • Pay special attention to any transaction fees deducted by crowdfunding platforms and ensure they are accounted for accurately in the financial statements.
     • Check if there are any outstanding balances or unprocessed payments and resolve them before the audit.
2. Ensure Proper Documentation for All Transactions:
   • Complete Documentation:
     • Ensure that all donations, sponsorships, and crowdfunding contributions are supported by appropriate documentation, such as contracts, receipts, acknowledgments, and thank-you letters.
     • Double-check that any transactions related to fundraising have been captured in full, including non-cash donations (e.g., goods, services, etc.), and are properly valued and recorded.
   • Missing or Incomplete Records:
     • Review the internal tracking system for any missing documents (e.g., invoices, contracts) and follow up with relevant stakeholders to obtain these records.
     • Confirm that every donation or sponsorship agreement includes a clear audit trail, including donor names, amounts, and any special stipulations regarding the use of funds (e.g., designated projects or restricted funds).
3. Audit Financial Statements for Accuracy and Consistency:
   • General Ledger and Fund Accounts:
     • Review the general ledger entries to ensure proper classification and coding of all fundraising-related activities. Ensure all donations, grants, and sponsorship funds are allocated to the correct fund accounts.
     • Reconcile the totals in the general ledger with bank statements to verify consistency.
   • Expense Tracking:
     • Ensure that expenses related to fundraising activities (e.g., event costs, marketing campaigns, processing fees) are accurately recorded and categorized.
     • Cross-check fundraising-related expenses against vendor invoices and receipts to confirm that no discrepancies exist between reported and actual expenses.
   • Revenue Recognition:
     • Confirm that revenue from donations and sponsorships is recognized in the correct accounting period, following the applicable accounting standards (e.g., accrual or cash basis).
     • Verify that revenue associated with restricted or designated funds is tracked separately and not commingled with unrestricted funds.
4. Reconcile Bank Statements and Financial Records:
   • Bank Reconciliation:
     • Perform a detailed reconciliation of all bank accounts, ensuring that all deposits, withdrawals, and transfers are recorded and that no transactions have been missed or incorrectly entered in the system.
     • Review bank statements for any outstanding checks, unprocessed transactions, or discrepancies that need to be resolved before the audit.
   • Cash Flow Accuracy:
     • Ensure that all cash flow transactions, including donations, sponsorships, and event proceeds, are accurately reflected in the financial records.
     • Review the bank’s deposit slips against recorded donations to verify that all funds have been correctly deposited into the correct accounts.
5. Verify Compliance with Tax and Legal Requirements:
   • Tax Documentation and Filings:
     • Review records for compliance with tax regulations, particularly in relation to charitable donations and non-profit reporting requirements.
     • Ensure that all required tax receipts (e.g., IRS Form 990 for non-profits, 501(c)(3) verification, etc.) are up-to-date, accurate, and filed as required.
     • Check for compliance with state and local regulations regarding fundraising activities, ensuring proper registration of fundraising events and adherence to any legal requirements.
   • Charitable Contribution Documentation:
     • Ensure that all donor contributions are documented in a manner that meets legal and regulatory requirements (e.g., receipts with donation amounts and the organization’s tax ID number for donors).
6. Identify and Correct Any Issues with Financial Reporting:
   • Discrepancies in Reports:
     • Review monthly and quarterly financial reports against actual transaction records, identifying any discrepancies in income or expense reports. This includes ensuring that the financial reports align with the SayPro Monthly Fundraising Audit Preparation.
     • Resolve any discrepancies by correcting ledger entries or making adjustments to account for errors in the previous month or quarter’s reporting.
   • Cross-Departmental Collaboration:
     • Work with teams from the SayPro Fundraising, Sponsorships, Donations, and Crowdfunding Office to ensure that all financial information is accurately reported. Cross-reference data with the SayPro Marketing Royalty SCMR to ensure consistency and alignment across departments.
     • Coordinate with the finance team to confirm the accuracy of internal reporting systems and ensure that all fund movements are properly documented and tracked.
7. Corrective Actions and Documentation of Changes:
   • Action Plan for Corrections:
     • Develop a structured action plan for correcting any discrepancies found in the records, ensuring that corrections are fully implemented before the audit begins. Document any changes made to financial records and maintain a log of adjustments for audit transparency.
   • Audit Readiness:
     • Double-check that all fundraising and financial records are organized and filed in a clear, easily accessible format. Make sure that all records are tagged, categorized, and indexed to facilitate efficient retrieval during the audit process.
8. Pre-Audit Validation and Final Review:
   • Cross-Check Final Records:
     • Conduct a final review of all financial documentation, ensuring that all records are accurate, complete, and ready for the external audit team’s review. Verify that the information aligns with the SayPro Monthly January SCMR-2 and all other relevant reports.
     • Ensure that every fund transaction, donation, sponsorship, and expense is supported by proper documentation and that all funds are tracked correctly.
   • Final Confirmation with Stakeholders:
     • Confirm with key departments, including the SayPro Fundraising, Sponsorships, Donations, and Crowdfunding Office, and SayPro Marketing Royalty SCMR that all documentation is complete and the financial data is ready for review. Resolve any outstanding questions or issues before the external auditors begin their work.

By following this comprehensive troubleshooting and resolution process, SayPro ensures that all discrepancies in fundraising records or financial reports are addressed proactively. This careful preparation helps to avoid potential issues during the audit process, ensuring transparency, accuracy, and compliance with all regulatory and organizational requirements.