Your Mid-Year Audit in 5 Easy Steps: Step 3 – Fill Out Audit Report

This week we are covering all the skills you’ll need to successfully complete your mid-year audit in January. These five steps include the new insurance requirement of having an audit committee. Today we’ll go over step three.

Step 3: Fill out the audit report and pass it on to the audit committee

You have worked your way through the checklist and examined all of the financial records of your unit. It is now time to complete the audit report, which you can find here.  

  • The top of the form is full of information you can find in your bylaws: your official unit name, council and district name, your IRS Employer Identification Number (EIN), and fiscal year.
  • The dates covered in your audit could shift based on your fiscal year, but many mid-year audits cover July 1-December 30th.   
  • The balance on hand begins with the information from the last audit.
  • Receipts include everything your unit has deposited in this six-month period.
  • Disbursements include everything your unit has paid  in the last six months. 
  • The bank reconciliation section is often overlooked by auditors, and is the cause of many incorrect audits. Making sure that any and all outstanding checks are noted on the report (and checking the previous audit to ensure that those checks have cleared as well) is critically important. Forgetting this step often means that your report won’t balance.  
  • Determine if your unit’s books are correct, substantially correct, partially correct, or incorrect, and check the appropriate box. Many of our units will have a few suggestions of things that the auditor found — perhaps a Payment Authorization form was missing a receipt, or one check was missing a second signature — those fall into the substantially correct box. If there are many instances of missing paperwork or incorrect accounting, then the auditor would either check “partially correct” or “incorrect.” Whichever box you check, you should give your unit some written feedback on what you noticed. This is usually done in a separate document and attached to the report and the checklist.
  • The auditor signs and dates the report and notifies the audit review committee that the books are ready for their review.
  • The auditor meets with the audit review committee to hand over the books and the audit, and to be on hand to answer any questions they may have.
  • Once the audit review committee has completed its review, each member of the committee signs and dates the bottom of the audit report. NOTE: At this time our audit report does not have a designated space for the audit review committee signatures, but there is space at the bottom of the form or in the margins for this to occur. 

Congratulations — the hard work of the audit is now done! Give yourself a huge pat on the back for helping your unit stay compliant and following the fiduciary checks and balances we use to keep our organization transparent.

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