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  • 1.  Check Copies/Auditors

    Posted 11-29-2023 12:20 PM

    Hello! 

    What is considered the current best practice for substantiating gifts made by check for your auditors? 

    For years we shredded all checks two weeks after they were processed/verified.  Our Controller and our auditors are indicating that we must keep check copies going forward.

    Would anyone be willing to share language that speaks to the current practice at their institution?



    ------------------------------
    Tracy Rush
    Executive Director, Advancement Services
    Otterbein University
    trush@otterbein.edu
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  • 2.  RE: Check Copies/Auditors

    Posted 11-29-2023 12:32 PM
    Keeping copies of checks (with the account number redacted) is standard procedure. Ideally you store them digitally. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


  • 3.  RE: Check Copies/Auditors

    Posted 11-29-2023 12:34 PM
    No need to keep them. They are already digitized by your bank. And, unless the memo line has details proving donor intent, they have no audit value.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 4.  RE: Check Copies/Auditors

    Posted 11-29-2023 12:57 PM
    It's true that the bank keeps digital copies, but it's not always easy to access those copies. It depends on the bank and how old the records are, and how easy the bank makes it to locate and download them. For your annual audit it's probably fine, but if the IRS comes calling, it is not fun to have to rely on your bank for these records. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 5.  RE: Check Copies/Auditors

    Posted 11-29-2023 12:59 PM
    The IRS calls the individual for an audit. Your CRM serves as the confirmation. There is no law requiring you to retain copies of checks.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 6.  RE: Check Copies/Auditors

    Posted 11-30-2023 08:16 AM

    As Isaac mentioned, we keep redacted copies in our document imaging system where there are linked to our CRM via revenue ID.  It does make audit time easy-peasy (for checks), and we refer back to them regularly when answering questions about gifts. 



    ------------------------------
    Courtney Sims
    Bucknell University
    courtney.sims@bucknell.edu
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    Original Message


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