Mid-Year Check Up

| Audit and Accounting

By Natalie Hopkins    Many of our clients are currently closing out their fiscal year-end financial records and keeping up with the many to-dos that go along with that strenuous process. However, we have many nonprofit clients who are hitting their halfway mark of their fiscal year and are ready for a mid-year checkup.

Finance Committees should be evaluating cash flows and what is anticipated during the second half of the year to understand shortcomings and how to invest additional cash that may not have been in the original budget (I know many of you are laughing and thinking, “That’s a problem I’d love to have!”). Are there any expenditures that have been incurred that weren’t expected? Many organizations that own a building or utilize equipment for day-to-day operations face this at least once a year.

How has personnel changed in the year and are controls still adequate to prevent and detect instances of fraud? Oftentimes a change has taken place and Management does not adjust vendor contacts or authorized signers in a timely manner. If there has been a change in personnel, it’s prudent to evaluate any documented internal control procedures to ensure they are still accurate.

It’s always good to maintain open dialogue with the Organization’s bankers, accountants, investments advisors, and any significant vendors. Meeting with these providers annually helps ensure you are maximizing the benefit of the respective relationships. The ever-changing economy makes investment advisors very useful in ensuring you are getting the best possible return.

Lastly, what goals did the Organization make that may have fallen by the wayside as the first six months of the year have flown by? We all know the next six months will speed by in much the same way. Take a high level view of the Organization and ask the question “How is our year really going?” Utilizing committee meetings over the next couple months to answer this question will help the Organization zone in on those important elements that will help make 2014 a great year.

For further assistance in evaluating the progress of your Organization and assessing Board Development needs, please contact Natalie Hopkins, Audit Manager for Alerding CPA Group at 317-569-4181 ext. 244 or nhopkins@alerdingcpagroup.com.  Alerding CPA Group is an Indianapolis-based public accounting firm.

This post was written by:

Natalie Hopkins, CPA
Audit Manager

Natalie services audit and assurance clientele with their annual compliance needs and general consulting services. Her client base includes wholesale/distribution, manufacturing, retail, service organizations, and health and welfare organizations. Natalie was chosen as an “Emerging Leader” by the Indiana CPA Society.
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