audit value

 

The previous post looked at ways to reduce the cost of the audit. This post will discuss how to increase the value of the audit.

While there is a cost associated with an audit, there are some ways you can increase the value it brings you.

For example, here are some important benefits that you could highlight upon the completion of a successful audit:

 

  • At the Annual General Meeting ensure the outcome of the audit is discussed. Focus on strong financial controls, strong governance frameworks and accountability.  This highlights to the local community, general public and any donors that the organisation is credible and uses donations properly.  This is not just important for retaining existing donors but also for obtaining new ones.
  • Send a copy of the annual report to the organisations that have provided grant, such as government agencies and philanthropic organisations. Make sure that it contains the audited financial statements.  The main reason to do this is that it shows your organisation has used the funds as intended and in accordance with funding guidelines.  This increases the credibility of your organisation which should make it easier to obtain funds with future funding applications.
  • Let the staff and volunteers know the results and value.  That can have a positive impact on moral as it shows that the finances of the organisation are in order, that they are being properly managed and that internal controls are strong.  This can have a positive impact on staff moral and also help to retain as well as attract new staff as they are being associated with a successful organisation.
  • If your organisation has members, then consider sending them details.  This not only provides an opportunity to contact your members but can result in the members becoming more actively involved with the organisation.

As one final and important point, if you are of the opinion that the cost of the audit is too high and your organisation is not getting value then change the auditors.