- The auditing of Club accounts is performed on behalf of the members of the Club. The audit is to ensure that the affairs of the Club are run in accordance with requirements set out in the Club's constitution.
- The accounts must be audited by at least 2 auditors. One auditor must be elected formally at the Club’s AGM, and one should be nominated by the local Business Sponsor or equivalent manager, normally within the club Chair's line management chain.
- Alternatively, external auditors may be appointed from a commercial company to whom an audit fee would be payable by the club.
- Auditors should bear in mind that Club Officials are volunteers working in their own time and should aim to offer advice and support in a helpful and friendly spirit.
Timing of Audit
- The HASSRA accounting year runs from 1st January to 31st December. The accounts must be audited annually after the year-end and by 14th February at the latest. [Note - The AGM should be held by 28th February and the audited financial statement should be issued 14 days in advance of the AGM.]
- The Chair and Committee may decide that the number and value of the Club's financial transactions are sufficient to warrant interim audits throughout the year at intervals of not more than 4 months. However, Auditors are also free to conduct audits at any time they see fit, without notice.
- The role of the auditors is to be unbiased and critical. It is commonly considered to be the third line of defence, ensuring risks are appropriately managed and controls complied with. Both auditors are equally responsible for the integrity of the Audit Certificate and should make every effort to undertake the audit jointly.
- A checklist should be prepared in advance, and each item should be initialled and dated as it is checked. See Example Checklist.
- Depending on the amount of activity of the club, you can decide whether to check 100% of all the documents or a sample.
- Verification is an important step in the audit process. Ensure bank statements have been reconciled, check cash in hand and levels of cash over the year, and that money has been properly banked. You may need to see minutes of meetings for details of agreed spend.
- There are several key elements that need to be considered when checking the accounts balance sheet:
- The starting figures used in the current year should be the end balance figures that were previously audited.
- Ensure all the supporting documentation matches the income and expenditure on the accounts.
- Ensure the opening balance, plus total income, minus total expenditure equals the closing balance.
- Ensure the closing bank balance on the accounts matches the bank statement balance at 31st December.
- You do not need to write a report. If you are accepting the accounts then a signature will suffice, but if you would like to make recommendations or if there is a problem then a report will be needed.
- If there are any issues that you are not happy about you should refer them to the club sponsor, regional chair or to the national HASSRA team.
Testing of Procedures
- Auditors should satisfy themselves that the Clubs financial organisation and financial controls are soundly based in line with best practice standards and that all members and officials involved in financial transactions are complying with the rules laid down.
Form of Certificate
- At the conclusion of the audit a certificate should be issued at the foot of the accounts in the following terms:
- 'We certify that the above ……'. Account for the year ended ………. and Balance Sheet are in agreement with the books and give a true and fair view of the Clubs affairs. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of the audit'. For small Clubs, 'Audited and found correct' will suffice.
- If the auditors are unable to satisfy themselves about any item or items, they should send a written report to the Chair and members clearly stating the reasons for not issuing an Unqualified Certificate, and the Certificate issued should be prefixed with the words 'Subject to our report'.
- If the auditors wish to recommend improvements in financial control, etc without qualifying their certificate, they should send an informal letter to the Committee. The Committee should decide whether to refer the matter to the members.
Further information on Audits can be found in the Staff Clubs Guide (This link is only available via the DWP Intranet only).