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Q&A #177 – Must audited financial statements be formally approved by the governing body?
Yes, a governing body of the organization must vote to accept (approve) or not accept (not approve) the final audit reports received from the auditors. This is not only a generally accepted best practice but also a compliance requirement because the audit reports and the auditing process will be considered incomplete unless the independent auditors receive formal approval notice from the governing body of the organization.
The Importance of Operating and Intermediate Cash Management Target Policies
Establishing operating and intermediate cash management target policies will provide many benefits. This simple but often overlooked cash management best practice will augment internal accounting controls, boost cash management awareness, and enhance perceptions that nonprofit organization management systems are significant and robust.
Always Add Written Management Responses When There Are Audit Findings
Audit findings are not unusual. Most nonprofit organizations will have many more years with audit findings reported by their auditors than years for which there are no findings. Audit findings tend to produce feelings of negativity and thoughts that something is wrong. Adding thoughtful written management responses will turn negative feelings into positive and constructive actions
The First Page of the Form 990 Is Key to Making a Good First Impression
An organization’s Form 990 is universally recognized as a key source of information by the general public, including constituents, donors, grantors, sponsors, and governments. Yet, I often feel that many nonprofits are not paying enough attention to whether the Form 990 adequately tells the complete story about how hard they work to fulfill their mission.