Nonprofit Audit Committee Calendar Guide

Audit work should not start when the auditor sends the first request list.

A nonprofit audit committee can do better work when it uses a yearly calendar. The calendar does not need to be complex. It should show when the committee picks or reviews the auditor, checks readiness, reviews draft statements, reviews Form 990, and follows up on findings.

The National Council of Nonprofits says the board is responsible for audit oversight unless it delegates that work to a committee. That means the committee calendar is not just a staff tool. It is part of board oversight.

Use this guide with the audit evidence binder and what auditors ask for most often.

Month 1: close the prior year

Start right after the fiscal year ends.

The committee should ask staff for the year-end close plan. It should include bank reconciliations, grant receivable review, restricted fund schedules, deferred revenue review, fixed asset updates, and payroll tie-outs.

For grant-funded nonprofits, ask for a list of active awards, reports due after year end, and any funder concerns. If federal awards are involved, ask whether Single Audit rules may apply. The rule lives in 2 CFR Part 200 Subpart F.

Month 2: review audit readiness

This meeting should focus on whether records are ready.

Ask for these items:

• draft financial statements
• restricted net asset schedule
• grant revenue detail
• board minutes
• conflict disclosures
• contracts and leases
• payroll support
• grant reports and award letters

Do not wait for the auditor to find missing records. If staff cannot explain where records live, fix the file system before fieldwork.

Month 3: confirm auditor timing

The committee should confirm the audit start date, staff contacts, board contact, fee, and deadline. If this is the year to change auditors or request bids, start earlier.

Ask the auditor what changed in standards, testing focus, or timing. Ask staff what will be hard this year. A new grant, new accounting system, turnover, or delayed close can change the audit plan.

Month 4: meet without staff

The audit committee should have a private session with the auditor. This is common governance practice. It gives the auditor a way to raise concerns without staff in the room.

The meeting can be short. Ask:

• Did staff provide records on time?
• Were there scope limits?
• Were there unusual transactions?
• Did management pressure the audit process?
• Are there control concerns the board should hear directly?

Keep notes of the meeting.

Month 5: review draft statements

When draft statements arrive, the committee should check the story and the numbers.

Read the statement of financial position, statement of activities, cash flow statement, notes, and any schedule tied to federal awards. Compare them to the board reports seen during the year.

Pay close attention to restricted funds. A big change in net assets with donor restrictions should tie to grants, releases, and donor terms. Use the restricted fund tracking guide if the committee needs a better support file.

Month 6: review findings

If the auditor gives a management letter or finding, do not let it sit.

The committee should ask staff for a response that names the issue, the fix, the owner, and the date. A weak response says, “Staff will improve controls.” A useful response says who will change which process by which date.

Add the issue to the committee calendar until it is closed.

Month 7: board acceptance

The full board should receive the audit report and a short summary. The audit committee chair or treasurer should explain the result in plain words.

Do not bury findings. Tell the board what the issue is, what staff will do, and when the committee will check again.

Month 8: Form 990 review

Form 990 is public. The IRS says many exempt returns must be available for public inspection. The board should know what the return says before filing.

Use the Form 990 board review checklist. Check the mission story, revenue, grants, compensation, related-party items, governance answers, and Schedule O.

Month 9: policy cleanup

After the audit and 990, review policies that came up during the cycle.

Common updates include:

• conflict of interest policy
• procurement policy
• reserve policy
• expense approval policy
• gift acceptance policy
• document retention policy
• grant management policy

Policy review belongs on the calendar. If it depends on memory, it gets skipped.

Month 10: midyear control check

Do a short check before the next year-end rush. Ask whether bank reconciliations are current, grant reports are on time, restricted fund schedules match accounting, and board minutes are approved.

This is also a good time to check management letter fixes.

Month 11: next audit plan

Ask what will make next year harder. New grants, staff changes, new programs, and system changes can all affect audit work.

If a grant may trigger a Single Audit, plan early. That audit has extra testing and support needs.

Month 12: committee self-check

End the cycle by asking what the committee did well and what it missed. Keep the next calendar simple.

GrantPipe can support the audit cycle by keeping grant records, restricted fund schedules, evidence, board approvals, and report dates together. The committee still needs judgment. The tool helps the proof stay close to the work.

DEFINITION

Management letter

A letter from the auditor that lists control concerns or process issues found during the audit.

DEFINITION

Single Audit

A federal audit required for some organizations that spend enough federal award money during the year.