Challenge

A community organisation required support to progress the completion of its 2024–2025 financial audit following a number of historical accounting and reconciliation issues. The organisation manages multiple government-funded programs, creating complexity around grant income recognition, funding allocations, acquittals, historical balances and the supporting documentation required by the auditors.

There was a need to review the underlying financial records, understand historical accounting treatments, reconcile funding information with the general ledger, and provide the auditors with clearer and more reliable supporting information.

Our Approach

Maxop commenced with a detailed review of the organisation’s financial records, funding information, grant reconciliations and outstanding audit requirements. We worked closely with the CEO to identify areas requiring clarification and developed working papers to progressively resolve accounting and reconciliation issues.

Our work included reviewing historical grant allocations and opening balances, reconciling government funding and expenditure, assessing revenue recognition against funding arrangements and program delivery, identifying accounting adjustments, and preparing supporting schedules for the audit.

Maxop also worked collaboratively with management, the organisation’s accountants and auditors to understand outstanding audit queries and coordinate the information required to progress the audit. In parallel, we identified opportunities to strengthen financial reporting, reconciliation processes and future audit readiness.

Outcomes

The work is providing the organisation with a clearer understanding of its financial position and the historical matters affecting the audit. Financial records and funding reconciliations are being progressively strengthened, with improved supporting documentation available for management and the auditors.

Importantly, the engagement is not simply focused on completing an outstanding audit. It is helping establish a stronger financial management foundation, with clearer grant accounting, improved reconciliations, better audit evidence and more robust processes for future financial reporting and governance.

Maxop brings together senior financial management, audit coordination and not-for-profit governance experience, helping community organisations resolve complex historical financial matters while building stronger systems and processes for the future.