Also see our Not-for-Profit Client Profile and Benefits Statement
Vasin, Heyn & Company has been helping nonprofit organizations and socially responsible businesses learn, grow, and prosper, for over thirty years.
Approach to nonprofit audits
- Regular meetings with the Audit Committee and Management, providing constructive services aimed at improving operations, and communicating important information to on a timely basis.
- Initially meet with the Audit Committee and Management to gain a full understanding of the philosophy, objectives and policies for operating the organization, as well as to discuss significant business, regulatory and accounting matters that will affect future plans.
- Meet with Management periodically to discuss current operations, recent developments, assist in accounting matters if necessary, and develop an engagement plan for the year ahead.
- We are always available on a telephone call, email, or project basis, to respond to any directive or special requests that Management might make.
- An important element of our audit approach is providing constructive services for the purpose of helping strengthen the organization’s operating efficiency and improve the effectiveness of administrative practices.
- Because of our position as an independent auditor, our experience with many human-services organizations, and knowledge of modern financial and accountability systems, we expect to make written recommendations that are useful and important.
- Because members of the audit team are automation specialists, we expect to translate our systems knowledge derived from the audit directly into suggestions for improvements to the organization.
Audit plan and schedule
- We will plan, schedule and coordinate the examination in the most economical and efficient way.
- Essentially, we will conduct the audit in three phases:
- Make a preliminary review in order to become fully knowledgeable about operations
- Meet well before year-end closing to identify and resolve any potential accounting issues as early as possible
- Provide prompt year-end attention so that financial statements and other reports can be prepared and issued on time.
- We disclose the total time to complete the required steps as a range of hours. Initial field work for transaction and compliance testing will occur prior to year-end. Final field work will proceed over a short field period in the quarter
following year-end with substantial other work conducted in our offices.
Evaluating internal controls
We will structure our evaluation of internal control structure and compliance with contractual and governmental provisions so that we can review financial activities thoroughly and efficiently. Such structuring comprises the following steps:
- Identifying types of transactions and accounts and the kinds of errors and fraud that could occur.
- Specifying the internal control procedures that would eliminate such misstatements.
- Determining whether existing control procedures and contractual policies are operating effectively.
- Planning of auditing procedures appropriately, in terms of the nature and extent of testing needed.
Irregularities and illegal acts
In accordance with SAS No. 53, The Auditor’s responsibility to Detect and Report Errors and Irregularities and SAS No. 54, Illegal Acts by Clients, we shall make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which we become aware to the Management and the Audit Committee.
Advanced auditing techniques
We will use random sampling methods to select disbursements for compliance testing and Primary/Corollary and
Directional Audit Programming procedures to reduce the time required to perform the audit. We have also developed specialized fund accounting audit programs, which will lead to significant economies in auditing detailed records.
Coordination of services and strategy for minimizing disruption
We will coordinate the audit with accounting and program personnel so as to utilize our combined staffs most efficiently and avoid duplication of work. This encompasses:
- Using to the fullest extent possible the financial statements, schedules and special analyses that your staff prepares and performing the maximum amount of work possible in our offices, using our computer systems.
- Scheduling as much of our field work as possible when organization personnel are least burdened with monthly work loads and special projects.
Automated audit efficiencies
- During the past years our firm has undertaken a project to create a “paperless office” and to automate most audit functions. We have attempted to coordinate these efforts with our clients and to great, but not perfect, success.
- Use of e-mail, portable computers with cell phone-network connections, upgraded network platforms, installation of ADSL and ISDN lines, installation of integrated accounting/audit program/ workpaper PC software and CD Rom technology has resulted in significant audit efficiencies.The time reduction associated with these productivity improvements has been reflected in our fees and accounts for substantial reductions in our audit hours from prior audits we conducted.
- We are committed to sharing these resources with our clients and learning from them as well.
- As a result of our knowledge of an organization’s chart of accounts, we will design and assist in implementing a streamlined account structure to better synchronize the books of account with final audit report formats. Because of the significant reduction in audit time this represents, we will conduct this effort at no additional charge.