Not-for-profit organizations often use restricted funds to manage contributions and expenses associated with an internal or external restriction. The organization's management team is then responsible for the day-to-day oversight of these funds.
Over the course of the year, management will be required to prepare financial information and reports regarding these funds to:
- Support the board in fulfilling their governance duties.
- Strengthen the organization’s strategies and goals.
- Ensure compliance and audit-preparedness for the organization.
Before meeting with the board or auditors, management should take the time to reflect on the use of the internally and externally restricted funds, and anticipate the questions that they might have for your team.
We created this list of questions and considerations that you can use to review your organization's restricted funds and stay audit-ready. Download the list today!