FundSvcs Community

Hi -

I've recently transitioned to a new position at different college and with the change comes a new opportunity to learn the differing approaches to audits from a new audit firm has.

In my previous institutions most auditors asked for backup to a selection of pledges identified by the audit firm.  The backup usually amounted to retrieving the signed pledge agreements and or documenting various conversations about restrictions that the donor and the gift officer may have had.  In rare cases the auditors would ask for additional documentation on those pledges that were booked as unrestricted; to confirm with the donor that their intention according to the agreement was to give a purely unrestricted gift, leaving the institution to direct the gift however they felt necessary.

At my new institution the auditors asked for something I've never had a request to provide and am wondering if others have had this experience.  The auditors have requested the address and contact information for the donors of those pledges they have identified.  They did not request the signed agreements or other communications but requested the information to "independently verify" that the donor had made a pledge to the institution with the terms, schedule and restrictions indicated in our CRM.  Have others had audit firms approach pledges in the same way?  This is a new one for me.

Appreciate any feedback.

Rick West

Hi -

I've recently transitioned to a new position at different college and with the change comes a new opportunity to learn the differing approaches to audits from a new audit firm has.

In my previous institutions most auditors asked for backup to a selection of pledges identified by the audit firm.  The backup usually amounted to retrieving the signed pledge agreements and or documenting various conversations about restrictions that the donor and the gift officer may have had.  In rare cases the auditors would ask for additional documentation on those pledges that were booked as unrestricted; to confirm with the donor that their intention according to the agreement was to give a purely unrestricted gift, leaving the institution to direct the gift however they felt necessary.

At my new institution the auditors asked for something I've never had a request to provide and am wondering if others have had this experience.  The auditors have requested the address and contact information for the donors of those pledges they have identified.  They did not request the signed agreements or other communications but requested the information to "independently verify" that the donor had made a pledge to the institution with the terms, schedule and restrictions indicated in our CRM.  Have others had audit firms approach pledges in the same way?  This is a new one for me.

Appreciate any feedback.

Rick West

I endorse John's solutions as ideal, but I'll add that I've worked with two different reputable and large audit firms that required this, and our organization had no history of write-offs (we ran a very formal booking system and only recorded very solid, binding pledges). We didn't take it quite as far as John's ideal. We did collaboratively produce the letters with the auditors so that we informed the language and ensured that all the data presented in the letters was accurate. But the letter was from the auditor, and the donor's reply went directly to the auditor. We attached copies of the letters to donors' records in our CRM and notified gift officers and encouraged them to reach out to their donors to advise them of the forthcoming letter. We presented it, and our donors received it as a signal of good governance that we had a robust, independent, annual audit, and it strengthened donors' confidence in their investment in us.

Rick, my brother went to St. John's College and loved it. Great institution! Wishing you all the best.

Hi -

I've recently transitioned to a new position at different college and with the change comes a new opportunity to learn the differing approaches to audits from a new audit firm has.

In my previous institutions most auditors asked for backup to a selection of pledges identified by the audit firm.  The backup usually amounted to retrieving the signed pledge agreements and or documenting various conversations about restrictions that the donor and the gift officer may have had.  In rare cases the auditors would ask for additional documentation on those pledges that were booked as unrestricted; to confirm with the donor that their intention according to the agreement was to give a purely unrestricted gift, leaving the institution to direct the gift however they felt necessary.

At my new institution the auditors asked for something I've never had a request to provide and am wondering if others have had this experience.  The auditors have requested the address and contact information for the donors of those pledges they have identified.  They did not request the signed agreements or other communications but requested the information to "independently verify" that the donor had made a pledge to the institution with the terms, schedule and restrictions indicated in our CRM.  Have others had audit firms approach pledges in the same way?  This is a new one for me.

Appreciate any feedback.

Rick West