FALL 2024

S S M U

Club Audits

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Presented by Valentina Bashkatova/ Amina Kudrati-Plummer

Estimated time: 45 mins

The SSMU acknowledges that McGill University is situated on the traditional and unceded territory of the Anishinaabeg and Haudenosaunee nations.

�The SSMU recognizes and respects these nations as the true and constant custodians of the lands and waters on which we meet today.

�Further, the SSMU commits to and respects the traditional laws and customs of these territories.

Land acknowledgement

Table of contents

Slide

S S M U

Club Audit Basics

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The Audit Form

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Evaluating the Audit

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Contact

Club Audit Basics

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The 5 Ws

The 5 Ws

Audit Submission

Transaction List, Documentation, Disclosures

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What’s Included?

What’s IncLuded?

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Transaction List

You must use the SSMU Transaction List Template.

• Download the transaction file and rename ‘xxx000’ with your CLU Number
• Go to the ‘Executive Names’ tab and add all of your executives’ information
• Enter your transactions in the ‘Transaction List’ tab

The sheet should automatically calculate who has been reimbursed, the frequency, and the amount reimbursed in the ‘Executives Names’ tab. You can check this with executives to confirm.

Transaction List

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• Make sure you do not leave any cells in a row blank
• Provide as much detail in the ‘Description’ as possible
• Date should be in mm/dd/yyyy format
• If there are multiple people reimbursed for the same event, list them separately and how much each was reimbursed for
• If there is one person reimbursed for multiple events, list each purchase separately and conduct individual reimbursements for each event
• Do not modify the transaction list format, rows, or cells
• Do not include bank fees in the transaction list form

Transaction List

Transaction List

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• The Transaction List will detail your revenues & expenses chronologically. All transactions should be taken from RBC bank statements. Bank statements must be attached as well
• Every line item on the list must be supported by an approved piece of documentation (full itemized receipts, invoices with attached credit card statements, and deposit slips)
• Photos are generally allowed, but you are responsible for legibility
• Photos of cheques, cheque copies/stubs do not count
• List any deposits made during the year as well

Transaction List Tips

Transaction List Tips

Example of the Transactions List Tab

Example of the Executive Names Tab

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Documentation Processes

Documentation Process

• Merge all of your supporting documents into one PDF. All documents must be scanned clearly.
• There are many different free programs for this. We do not personally endorse any in particular, but searching ‘merge pdf’ will give you several options.
• Label your receipts in your PDF file so they can be matched to your Transaction List. Make sure they are in chronological order based on the Transaction List

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Types of Documentation

Types of Documentation

Expenses

All expenses should have a full itemized receipt or invoice

• If the invoice was paid for by an executive who was then reimbursed from the club bank account, you will need their bank statement as well
• Bank statements should include the executive’s name, the last four digits of their bank account, and the relevant transaction - everything else can and should be blacked out

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Types of Documentation

Expenses (cont.)

• Payment vouchers are not considered full receipts
• All donations must have donation receipts
• All online orders should have full receipts or invoices with attached credit card statements as proof of payment
• Do not purchase from platforms that do not provide receipts (e.g., Facebook Marketplace)

Types of Documentation

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Types of Documentation

Revenues

• You should keep and include all deposit slips in your documentation (see the Club Finance Slides for details)
• Ticket Sales
• Keep a spreadsheet with the amount, name and contact information for each ticket
• Provide a list of transactions from the online ticketing platform, if used
• Provide confirmation emails sent to all participants

Types of Documentation

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Tips for Documentation

• Your reference number must match with what is labeled on your supporting documents PDF
• Failure to comply will result in a deduction of compliance points
• Do not mix personal purchases with club purchases
• Clubs are not allowed to ‘cross out’ items on receipts
• Keep your club expenses separate
• Reimbursements should be rejected by the club’s VP Finance if there is not adequate or appropriate documentation
• You must have some documentation for all transactions

Types of Documentation

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Tips for Documentation

• You should not have problems uploading the documents into the form
• If the form says files are too large, please email vbashkatova@ssmu.ca and we will investigate your issue.
• Documentation should include deposit slips (and proof of event, if available)
• We need proof that the event happened and the correct person was paid
• This is especially important for clubs that are/have been sanction in previous terms.

Types of Documentation

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Tips for Documentation

• If you do not have enough money in your bank account to reimburse an executive, record the amount as payable on the day of the audit, and pay them back when you have enough money.
• If you are reimbursing an executive in a different month than the purchase was made in (e.g., reimbursing in October for a purchase in September), you can record the transaction as when it was actually reimbursed
• If the expenses are made during the Fall audit but reimbursed during the Winter audit, you need to include them in the Winter audit, and vice versa

Types of Documentation

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• You must disclose all information that pertains to:
• Related party transactions
• Operating/Accounting errors (losses, uncertainty, or inaccuracy)
• Any other relevant information
• The club’s VP Finance (or delegated executive) is accountable for providing all of this information in full, without errors
• Any event or accounting practices that may be unclear to someone unfamiliar with your club should be disclosed

Disclosures

Disclosures

Evaluating the Audit

Completeness, Compliance, Accuracy

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Assessment Factors

Assessment Factors

Each category is scored out of 5 points. An average of 4 or above is a pass, anything below 4 is a fail

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Completeness

Completeness

Documentation

• All transactions have adequate documentation, including club bank account statements, full itemized receipts, invoices, and deposit slips, where appropriate

Transaction List

• All lines and columns are complete on the Transaction List. Each line has an event number and name, nothing is left blank, and descriptions are detailed
• All transactions from the bank statement are included in the Transaction List (May-Dec for Fall Audit, Jan-Apr for Winter Audit)

Auditor Requests

• Respond to all requests from the auditor in a timely and efficient manner

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Audit Rules

• All executives have been reimbursed by either ACH Transfer or Cheque
• Clubs have less than $100 on hand, and deposits are made in a timely manner
• Do not save cash accumulated at an event (e.g., ticket sales) to pay a vendor later - this must be deposited

SSMU Rules

• Event Declarations: all events that are off-campus, involve alcohol, or require a contract, must be submitted through the Event Declaration Form
• All alcohol must be purchased and consumed at a licensed bar or through SSMU
• All contracts must be signed by SSMU signing authorities, as clubs are not independent legal entities
• Internal Regulations of Finance

ComPliance

Compliance

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Accuracy

Accuracy

Legitimate and Accurate Records

• All documentation matches the transaction list and is in the correct order.
• All transactions from the bank statements must be included in the audit (see Completeness).
• Starting amount in your bank account and cash box must be aligned with the closing amount.

Disclosures

• All financial irregularities, sanctions, parties, and accounting errors are disclosed.

How to access bank statements

CONTACT

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Attendance

Audit Quiz (Optional)

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Attendance

Attendance