Most (if not all) smaller local unions and businesses dread the high cost associated with a financial statement audit. Oftentimes, they go along and request for an audit because of bylaw or other regulatory requirements. However, if you are not required to have an audit yet you still wish to obtain some level of assurance that your books are in good order, the good news is there are resources out there to help you achieve this for FREE. YourLocal can maintain a quality accounting system with proper checks and balances, obtain assurance, AND most importantly– pay absolutely nothing! Contrary to popular belief, the independent audit should NOT be the security check and final “bless-off” on your accounting system.
The Department of Labor has issued an informative ten-step guide on how to Trustees can conduct audits in Small Unions. The guide is 58 pages long, and most folks will likely not have the time (or attention span) to read through it.
This article will guide you through the process in simple-to-understand language.