​With the progress and development of the economy, a variety of funds came into being. Relevant departments and even fund managers have clear requirements for the direction and compliance of fund use and increasingly rely on accounting firms for supervision and quality inspection. Then, how to do a good job in the audit of social funds. Here is the article that in-depth everything you should know about social fund audit.

Main everything you should know about social fund audit

1. Whether the social fund has established a special financial management system according to the nature of the fund and the requirements of relevant fund donations, whether there is a sound financial management system, and whether the internal control system is sound and effective.

2. Whether the social fund allocation is in place in time and in full, whether the central level allocates all local levels in time and in full, and whether the funds at all levels are accounted separately according to the requirements of the accounting system.

3. Whether a scientific and reasonable fund use plan (budget) is prepared according to the year or before the activity period, and whether the budget is approved and reported according to the specified approval authority and procedures, so as to achieve approval before use, democracy and transparency.

4. Whether the fund is used in accordance with the budget and authority, and whether it has been approved by the competent leader. Whether the amount and scope of relevant management fees are reasonable and compliant.

5. Whether the fund meets the scope and standards specified in the appropriation, and whether the fund is earmarked for a special purpose, and whether there is any embezzlement, misappropriation, or overdraft.

6. Whether the channels and storage of fund appreciation are safe and complete, and whether the value preservation and appreciation are legal and compliant.

7. Whether the income generated by the fund and the income from fund dispatching are fully recorded, and whether there is any phenomenon of setting up an off-book account.

8. Whether the equipment and materials purchased by the fund are fully recorded, whether there is over budget procurement, and whether public bidding is adopted in the procurement process according to the requirements of the social fund.

9. Whether the equipment and materials are counted on schedule, and whether sufficient internal control measures are taken in the distribution, storage, and use links.

10. At the end of each fiscal year and work year, whether the project progress report can be written in time, reflect the differences and reasons between the project work and the plan in time, and report to the social fund organization and relevant departments whether there are unforeseen expenses and unapproved work contents and plan adjustments.

11. At the end of each fiscal year and work year, whether the final financial statements and financial statements are prepared in time to reflect the budget completion differences and reasons for the use of funds, and report to the social fund organization and relevant departments whether there is any phenomenon that the use of funds exceeds the scope of the budget due to allocation of budget adjustment.

Basic practices of social fund audit

According to the audit requirements and the characteristics of each fund, formulate the format of the attached table of the report

Through discussion with relevant managers of social funds and problems noted and found in the audit process, jointly analyze the financial management, audit requirements and the characteristics and needs of fund operation of various fund organizations in the society, and design the financial report form of various funds in the society, During the annual audit, it shall carefully supplement and correct the imperfections in the financial statements of the previous year, so as to make them more true and complete, and objectively and fairly reflect the financial situation of the fund. Specifically, it is divided into project fund balance table, project expenditure summary table, central expenditure category summary table, and provincial fund summary table allocated to each project. It should be noted that the project fund balance sheet is mainly used to reflect the overall fund operation of the project, including cumulative income, cumulative expenditure, accounts receivable and payable, and the ending balance of monetary funds.

Continuously deepen the implementation of audit procedures

1. Pay attention to the preparation and implementation of the audit plan to ensure that the work progress is completed on time and with quality. As the projects involved in various fund projects in society are divided into different levels, six regions, and many personnel, it is necessary to talk with the financial department of the central executive agency of the fund and the central financial director of each project before the audit to understand the basic financial situation of the whole project, highlight the audit purpose and audit task, and jointly formulate a reasonable and detailed audit plan, Prepare and distribute the list of materials to be prepared and provided by the auditee in advance and the specific requirements for the degree of information provision so that the subproject implementation units at all levels can better and more efficiently arrange and complete the preparations before the audit.

2. Pay attention to the rationality and authenticity of the management, distribution, and storage of materials and equipment purchased by the fund. With the continuous investment of the fund, the amount of funds is becoming larger and larger, and the amount of procurement funds are becoming larger and larger. Therefore, a large number of drugs, materials, electronic equipment, laboratory equipment, and automobiles are purchased. How to improve and supervise the possible disconnection and omission of these materials and equipment in the distribution link and the custody and use the link of subproject execution units at all levels, How to make the existing management systems at all levels play a practical role, eliminate formalism, and better achieve the restraining and restrictive role of executive units at all levels and departments at the same level requires the central executive agency of the fund to continuously strengthen supervision, deepen the inventory audit procedures in the audit process, and develop a set of feasible inventory audit scheme.

3. Focus on audit and analysis of budget adjustment, budget completion of variance, and expenditure of unforeseen expenses. According to the requirements of the fund, the work plan and fund use budget for the next year shall be submitted to the fund before each project work year. Once the budget is approved, it shall not be adjusted or changed at will. In case of special circumstances, it must be reported to the fund management organization through the corresponding department and approved. In addition, the use of funds not completed or completed beyond the budget and the reasons shall be reported in detail to determine the approval of the next budget. Therefore, in the audit process, in addition to the authenticity of the audit financial statement data, we must also focus on the implementation of the budget, conduct a lot of analysis and re evidence collection according to the audit data, and disclose the completion of the budget and the analysis of the reasons for the differences in the audit report. For projects that use unforeseen expenses, specific audits shall also be conducted to pay attention to whether the unforeseen expenses should be allocated to the central level or the local level according to the actual expenditure target.

Improve the preparation of audit working papers, which complement the audit report

According to the specific requirements of fund audit and the particularity of fund management operation, a large number of practical fund special audit manuscript formats need to be prepared before the audit, so as to effectively improve the audit efficiency, improve the accuracy of audit data, and the cross-checking relationship between tables. Some funds are divided into activity funds and procurement funds. Among them, the activity funds are allocated level by level. The use of funds involves multiple departments and links. In addition to the increasing number of fund projects, it is required to consider various social fund projects in addition to formulating the audit draft and audit elements of general accounting subjects while preparing the audit draft, A large number of supporting, grading, and summarizing drafts have been formulated according to the audit requirements for the use and connection of funds of various departments and the connection of funds between levels. 

Selection of the conversion exchange rate in financial statements

From the perspective of technical operation, two problems need to be solved in the conversion of foreign currency statements, one is what exchange rate is used, and the other is how to deal with the differences caused by the conversion of foreign currency statements. At the end of the period, the ending balance of all foreign currency accounts shall be converted into the amount of bookkeeping functional currency according to the market exchange rate at the end of the period, The difference between the amount of bookkeeping functional currency after the conversion of the ending balance of the foreign currency account and the amount of bookkeeping functional currency before the conversion at the ending exchange rate is recognized as an exchange gain or loss. For some foreign social fund projects, the funds transferred in US dollars and various expenditures in US dollars are also converted at the market exchange rate when foreign currency business occurs, but the balance of each foreign currency account at the end of the period is converted into the amount of bookkeeping functional currency according to the exchange rate agreed by the IMF.