Financial Resources: 501(c)3 Annual Audit Checklist

It’s National Checklist Day!

In NY state, 501(c)3’s with budgets between $250,000-750,000 are required to undergo an annual independent review, while organizations with budgets over $750,000 are required to undergo an annual independent audit. While each state’s requirements vary and auditor’s each have their own custom documentation lists, we’ve composed a list of some of the most commonly requested materials.


Annual Audit Checklist for 501(c)3 Organizations

1. Clean and prepare for auditor:

  • Accounts receivable schedule

  • Accounts payable schedule
  • Depreciation schedules
  • Expense account analyses requested by your auditor
  • Schedules of prepaid expenses for upcoming fiscal year
  • List of fixed asset additions and dispositions
  • Investment activities

2. Reconciliation of all bank/credit card accounts

3. Gather:

  • Bank statements, credit card statements, reconciliation reports, and canceled checks
  • Payroll records and tax returns showing withholding for employees
  • IRS Form 1099s for independent contractors and consultants
  • Invoices and paid bills (receipts)
  • Receipts for credit card transactions
  • Contracts, award letters, and copies of checks deposited into the account. Oftentimes auditors only request documentation for deposits $5000 or greater.
  • Financial records listing transactions and accounts over the audit period

4. Have organized and readily available all:

  • Corporation or organizational documents
  • Policies related to financial management and controls
  • Tax exemption letters
  • Board or committee meeting minutes
  • Grant proposals, commitment letters and contracts with funding sources
  • Final reports submitted to funders
  • Contracts with vendors
  • Leases
  • Equipment maintenance agreements
  • Insurance policies (office contents, professional liability, etc.)

Download Printable Checklist