Conducting a Financial Audit

Here are recommended steps for auditing the troop's financial records:

1. Check hidden accounts (View > Filter By ... > Other > Show hidden accounts). The only hidden account that may have a non-zero balance is Opening Balances. All others should be zero, including Imbalance, Orphan, and Retired Accounts.
2. Verify that all bank accounts (checking, savings, council) are reconciled to a recent statement.
3. Verify that troop activities are recorded correctly and that member accounts are being charged accordingly.
4. Verify that popcorn earnings are being credited correctly to member accounts. Member proceeds should be exactly 30 percent of sales. Bonuses go to the troop.
5. Verify that collected dues are being deposited and recorded correctly.
6. Verify that member support payments are credited properly.
7. Verify that the Transfer account has a zero balance. It exists solely as a bookkeeping convenience and should have no standing balance.

It is not necessary to examine every individual record. Spot checks of things like troop activities and popcorn earnings should be sufficient.