Summary:
When a nonprofit organization faced delays in completing regular audits, they turned to the Elliott Davis Accounting Advisory Services team for support. Challenges included significant gaps in institutional knowledge, material weaknesses, high levels of adjusting journal entries (AJEs) identified during audits, and an overall lack of continuity in the accounting function.
Through a comprehensive approach, the Elliott Davis team worked with the organization to automate key processes and implement tailored solutions to address the organization’s needs and effectively resolve audit concerns.
These efforts significantly impacted the organization’s financial health and reporting. Subsequent audits demonstrated strong improvement in areas of concern and restored confidence in compliance.
Context:
- A nonprofit needed assistance getting caught up with regular audits and brought in the Elliott Davis Accounting Advisory Services team to help.
- Once the audit was conducted, findings included three material weaknesses and 18 AJEs.
- While working to complete the previous year’s audit, the organization experienced leadership vacancies and accounting staff turnover, leading to larger gaps in institutional knowledge that further delayed audit completion.
Our approach:
- The Elliott Davis team stepped in to provide transactional support for accounting staff, monthly advisory services, management reporting with advisory insights, address the audit concerns, and bring experience to the organization’s accounting function.
- Began by helping automate key processes and integrate software to enhance efficiency and operations:
- Set up all bank feeds in QuickBooks Online
- Moved to BILL platform to streamline financial operations
- Created a payroll allocation spreadsheet
- Assessed all procedures, with heightened focus on month end close procedures and federal grant accounting, to identify opportunities for improvement.
- Developed working relationships with external auditors to collaborate on process improvements and address areas of concern that had been raised in the audit.
- Put reconciliations in place to assist with compliance with federal grants.
- Assisted with development of board reporting packet to provide transparency into financial reporting.
Customer Impact:
- The Fiscal Year 2023 audit resulted in no identified material weaknesses, significant deficiencies, or noncompliance. The number of AJEs reduced from 18 to 8 and the audit concluded in March of 2024.
- The organization now has continuity in the accounting function.
- Leadership, board members, donors, and the community have enhanced confidence in the financial management and grant compliance of the organization.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
