Any audit is a daunting experience even for the most accomplished School Business Manager. However, if your organisation’s financial records and processes are in order, it should be relatively painless.
By following these tips, you can ensure a smooth and successful audit process, demonstrating the school’s commitment to financial transparency and accountability.
Here are ten top tips to help you get ready:
1. Understand what is being covered in the Audit
- Familiarise yourself with the specific requirements from the auditors. Know what documents and information they will need.
2. Organise Financial Records:
- Ensure that all financial records, such as bank statements, invoices, receipts, petty cash and payroll are well-organised and easily accessible. Examine previous audit reports to identify any recurring issues or recommendations. Ensure that corrective actions from past audits have been implemented.
4. Conduct Internal Reviews:
- Perform internal reviews or mock audits to identify and rectify any discrepancies or areas of concern before the official audit.
5. Ensure Compliance with Policies and Regulations:
- Verify that all financial activities comply with relevant policies, regulations, and guidelines set by educational authorities and governing bodies.
6. Reconcile Accounts Regularly:
- Regularly reconcile all accounts, including bank accounts, to ensure that all transactions are accurately recorded and any discrepancies are resolved.
7. Prepare Detailed Documentation:
- Provide detailed documentation for all financial transactions, including the purpose of expenses, approvals, and supporting documents. Ensure that all documentation is complete and accurate.
8. Maintain Clear Audit Trails:
- Ensure that there is a clear audit trail for all financial transactions. This means having a documented history of all transactions, including who approved and authorised them.
9. Train Staff and Allocate Responsibilities:
- Train relevant staff on audit procedures and ensure that they understand their roles and responsibilities. Allocate specific tasks to ensure that all areas are covered and there is no overlap or confusion.
10. Communicate with the Auditors:
- Maintain open and proactive communication with the auditors. Address any queries or requests for additional information promptly and accurately.
A FEW ADDITIONAL TIPS
- Segregation of Duties: Ensure that there is a proper segregation of duties among staff involved in financial processes to reduce the risk of errors or fraud.
- Update Financial Policies: Regularly review and update the school’s financial policies and procedures to ensure they are current and effective.
- Document Review Process: Keep records of who reviewed and approved financial documents and when to provide a clear accountability trail.
- Prepare for Site Visits: If the audit involves a site visit, ensure that all necessary documents and records are ready and that key staff are available to meet with the auditors.
- Address Potential Issues Early: Identify and address potential issues or discrepancies early, rather than waiting for the auditors to find them
By following these tips, you can ensure a smooth and successful audit process, demonstrating the school’s commitment to financial transparency and accountability.