FY2018 Financial Audit Process

You may have seen the recent PASS News post about the completion of our FY2018 financial audit. This is a rigorous process that our management team at PASS HQ (C&C) undertakes every year starting in June and ending in October.

But, what is an annual audit and why does PASS engage in one?

PASS has completed an independent audit of its annual financial statements since its inception in 1999. The audit firm (FGMK based out of Chicago, Illinois) has been retained by PASS since 2002, and reports to the Board of Directors by way of engagement with PASS’ Executive VP, Finance.

The primary reason for the audit is to demonstrate our organization’s commitment to financial transparency. Publishing an independent audit on our website and providing the report to those who request it are examples of transparent practices that our members have come to expect from PASS. Our community wants the assurance that our organization’s financial practices meet accepted standards. The audit also assists Board members in satisfying their fiduciary and governance responsibilities.

During the audit process, the auditor analyzes all of PASS’ financial statements, supporting records, and financial reporting controls. Once complete, finance and the auditor review the draft financial statements and supporting analysis. The Executive Director of PASS and the auditor then meet to review the audit and discuss findings and recommendations, if any.

Lastly, the auditor and I (the Executive VP, Finance) meet to discuss the draft statements and talk about how the year has gone and how the finance team has performed.

The auditors then provide a written report to the Board of Directors on the financial statements and their opinion as to whether the statements fairly represent the financial position of PASS at fiscal year-end. This report includes the changes in PASS’ net assets and cash flows for the fiscal year under audit, in accordance with the U.S Generally Accepted Accounting Principles - GAAP.

I’m pleased to share that we once again had no reported deficiencies or difficulties throughout the audit process. The auditors at FGMK also noted that PASS is in the top quarter percentile of smoothest financial audits.

I’d like to thank the team at PASS HQ for their hard work throughout the year, and every year, to ensure that all of our financial statements and records follow the required processes and regulations.

The complete 2018 Financial Audit is now available here: https://www.pass.org/Governance/BoardofDirectors/Financials.aspx