Non-Profit Financial Reporting and External Audit Readiness: Fund Accounting to Annual Filing – London, 27 Sep – 1 Oct 2027

Programme overview

Technical depth: Practitioner · Practical mode: Modelling build

Introduction

Non-profit finance teams face an annual deadline that combines three tests: accounts that respect donor restrictions, an external audit that ends without a modified opinion, and statements filed on time with the supervising authority. Weak fund accounting, unsupported grant spending and last-minute reconciliations put all three at risk. This Core Concept course equips finance staff to prepare fund-based financial statements under the International Non-Profit Accounting Standard and to organise the year-end for audit. Participants build a working model and leave with an Annual Financial Statements and Audit Readiness Pack.

Course Objectives

• Classify income, expenses and net assets by restricted, unrestricted and endowment fund using a unified chart of accounts
• Apply INPAS recognition rules to grants, donations and in-kind contributions, with reference to other sector frameworks
• Prepare fund-based annual financial statements, including a statement of functional expenses, a cash flow statement and notes
• Assemble an audit-ready file of prepared-by-client schedules and reconciliations that answers auditors' requests first time
• Respond to audit findings, fraud-risk enquiries, management letters and modified opinions in line with the ISAs
• Produce an Annual Financial Statements and Audit Readiness Pack ready for board approval and filing

Target Audience

• Finance managers and accountants in associations, foundations and charities
• Finance officers responsible for grant and donation accounting
• Treasurers and finance committee members who review the annual accounts
• Internal auditors and compliance officers preparing the organisation for external audit
• Grant finance officers in foundations and endowments who review grantee financial reports

Course Outline

Day 1: Non-Profit Financial Reporting Foundations

• Non-Profit Reporting Frameworks Compared: INPAS, IFRS for SMEs and Sector SORPs
• Users of Non-Profit Financial Statements and Their Information Needs
• Unified Chart of Accounts Structure for Associations and Foundations
• Restricted, Unrestricted and Endowment Fund Classification
• Year-End Close Readiness Review Using a Closing Checklist

Day 2: Accounting Standards for Non-Profit Transactions

• INPAS Grant and Donation Income Recognition: Conditions and Restrictions
• In-Kind Donations, Donated Services and Volunteer Time Measurement
• Statement of Financial Position and Statement of Financial Performance by Fund
• Statement of Functional Expenses: Programme, Fundraising and Administration Allocation
• Comparative Presentation under Charities SORP (FRS 102) 2026 and FASB ASC 958

Day 3: Preparing the Annual Financial Statements

• Fund-Based Trial Balance Mapping to Financial Statement Lines
• Cash Flow Statement Preparation Using the Indirect Method
• Notes to the Accounts: Fund Movements, Related Parties and Commitments
• Board Annual Report on Activities, Results and Reserves Policy
• Grant and Donor Reconciliation Schedules

Day 4: External Audit Readiness, Risk and Problem Cases

• Prepared-by-Client Schedule and Audit File Index
• Common Non-Profit Audit Findings: Commingled Funds, Unsupported Expenses and Cut-Off Errors
• ISA 240 (Revised) Fraud Risk Indicators in Donations and Cash Collection
• Written Representations under ISA 580 and Communication with Those Charged with Governance under ISA 260 (Revised)
• Modified Opinions under ISA 705 (Revised) and Management Letter Responses under ISA 265

Day 5: Modelling Build and the Annual Filing Pack

• Model Build: Fund-Based Financial Statements from a Sample Trial Balance
• Model Build: Functional Expense Allocation Workbook
• Going Concern and Reserves Assessment with Reference to ISA 570 (Revised 2024)
• Annual Filing Checklist: Audited Statements, Board Approval and Submission Evidence
• Annual Financial Statements and Audit Readiness Pack Review

Skills You Will Gain

• Fund Accounting
• Grant Income Recognition
• Functional Expense Allocation
• Non-Profit Financial Statement Preparation
• Audit Evidence Preparation
• Financial Close Management
• Audit Finding Remediation
• Reserves Analysis

Why Attend This Course

• Leave with an Annual Financial Statements and Audit Readiness Pack built on a working, fund-based model
• Shorten the audit cycle by anticipating what auditors will request and why
• Explain restricted fund balances and functional expense ratios to boards and donors in plain terms
• Compare reporting and audit practice with finance professionals from non-profits in other countries

Conclusion

Donors, boards and supervisors judge a non-profit's credibility first by its annual accounts and its audit report. This course moves from fund classification and the recognition rules for grants and donations, through the preparation of fund-based statements and notes, to the audit findings, fraud risks and opinions that most often cause difficulty. The final day brings these together in a working model and an Annual Financial Statements and Audit Readiness Pack that participants can use at their next year-end.