Nonprofit Audit-Readiness Checklist for Finance Teams

The document is a guide intended for nonprofit finance leaders, controllers, and board treasurers in the US and Canada. It outlines a checklist designed to prepare organizations for audits by presenting 40 checks across five essential control areas that auditors and funders commonly inquire about. Each section details specific checks that should be marked based on current practices rather than just policies. The guide emphasizes the importance of separation of duties, approval thresholds, and proper oversight, while also providing practical advice for small finance teams. Additionally, it addresses the unique requirements for managing restricted funds and ensuring compliance with grant conditions. The checklist aims to help organizations present appropriate evidence to auditors and funders to demonstrate that they are managing funds in accordance with the necessary controls, ultimately supporting accountability and transparency in nonprofit financial practices.