Here is a copy of a sample Canadian Charity Audit Pre-Audit List and Charities Directorate Audit Questionnaire for a general audit by CRA. The list gives an indication of the documents and questions that CRA may cover or ask on an audit of a registered charity. If you are being audited by CRA and you are concerned it may be beneficial to obtain legal advice from a charity lawyer. If you are not being audited you may to read the list and think about whether you could respond to the checklist if you were being audited.
CHARITY AUDIT PRE-AUDIT LIST
Name of Charity: _________
Years to be Audited: Fiscal Periods Ending ______________ and __________.
In order to expedite the audit, please have available the following documentation at the commencement of the audit:
1. The Charity’s books and records (including trial balance, general ledger, cash receipts/disbursements journals, all adjusting journal entries, bank statements, cancelled cheques.
deposit books, revenue records. invoices and other documentation for expenses, fixed asset purchases, etc.) for the fiscal periods.
2. A listing of donation receipts issued for the fiscal periods that includes the name, address, receipt number and amount of the receipt. The totals should reconcile to the T3010 returns (line 4500).
3. All duplicate copies of official donation receipts issued for the fiscal periods.
4. Records related to foreign activities, e.g. copies of agency agreements, contracts, joint-venture or similar agreements, copies of bank records, financial reports, photos, correspondence, etc.
5. Details of the Charity’s activities supported by copies of brochures, pamphlets, publications, membership and fundraising correspondence, newsletters, press releases, media-related materials, and other related literature. Include copies of governing documents.
6. Current listing of directors/trustees, positions within the organization and occupation. Copies of all minutes of board meetings for the period from ____________ to the current date.
7. A copy of the ______ T3010 Registered Charity Information Return and of the _________ financial statements.
8. Please answer the attached questionnaire by providing the appropriate responses. Written responses should be prepared beforehand with a copy made available at the commencement of the audit.
CHARITIES DIRECTORATE AUDIT OUESTIONNAIRE
1. Could you describe:
1.1 The organization’s primary objectives?
1.2 Mission Statement?
1.4 Has your organization been involved with any of the following types of activities during the past three years? If yes, please provide examples of each.
Advertising by way of TV, radio, postcards, flyers, or posters?
Write-in or mail-in campaigns to any level of government?
Audio cassette information or education releases?
Video cassette information or education releases?
1.5 Has your organization submitted any correspondence or briefs to any level of government, by invitation or otherwise?
1.6 Have you had any employees on staff during the past three years who hold Registered Lobbyist status?
1.7 Has your charity contracted with any firm or consulting group or individual that, to your knowledge, employs staff with Registered Lobbyist status or is a Registered Lobbyist?
1.8 Does the organization have any plans for future projects? Please explain.
2.1 Does the organization engage in any of the following fundraising activities?
Sports events like golf tournaments or work-a-thons?
Dinners or dances?
Bingos or raffles?
Store cash register appeal boxes?
Gifts of goods?
Gifts of services or labour?
Joint ventures with other organizations?
Sales of goods, etc?
Sales of services?
2.2 Do you receive any unsolicited donations?
2.3 Please provide a list of major donors?
2.4 Do you plan any future changes to your fundraising methodology?
3.1 How many committees are there?
3.2 Please provide a list of the names of each committee with their functional responsibilities including a list of members.
3.3 Please provide a photocopy of each committee’s minutes for the year(s) under audit to dll1e.
3.4 How many employees arc there on the payroll?
3.5 Were T4 slips issued for each employee?
3.6 Have there been any recent changes in personnel in key positions?
3.7 What is the turnover rate in non-key positions?
3.8 Has your charity employed any individuals under personal service contracts, either formal or otherwise, who were not accounted for under your payroll system?
3.9 Do you have any contracts, invoices or any other types of documentation regarding these individuals?
3.1 Have T4 or T4A slips been issued for the above individuals?
3.11 Has the organization acquired or disposed of any assets? When? What were they?
4.1 How many bank accounts does the organization have?
4.2 Please provide names of all banking institutions, type of account and account numbers.
4.3 Does the organization have any safety deposit boxes? Where are they located?
4.4 Does the organization have any investments? Please provide details.
5.1 Do you have concerns/problems in completing the T3010?
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.