At SmithBucklin, most of our client organizations conduct an audit on an annual basis, whether it is required by law or not. Annual audits provide an independent eye into how an association is functioning financially and can identify issues and inefficiencies before they become larger problems. If appropriate protocols or procedures are not being followed, an audit can detect those problems and allow the association to quickly remedy the issues. If these issues go unchecked, it could be incredibly costly for an organization down the road. In some cases, our financial management and accounting professionals recommend an annual review instead of an audit – which is less in scope than an audit but can still provide helpful financial insights.
Associations have a fiduciary responsibility to their board of directors and their members. Conducting an independent analysis of your financials assures the board that the accounting team has done a successful job, everything is on track and that internal controls are working properly. With this information, the board can report back to membership.