Audits

Audits

The audit, conducted by the UTMSU, inspects the financial accounts of each student group to ensure that democratic and reasonable financial decisions are being made by each group to justify further funding.

The UTMSU has two audit periods, which coincide with the two semesters of an academic year:

  • June-November
  • December-May

The audit requires the submission of several documents, including the following:

  • Financial Statement – Overview of finances, including the following:
    • Allocated Budget – Total of your budget (eg. $1000 budget, $700 received)
    • Total Amount Spent – Total money spend during audit period
    • Detailed Financial Breakdown – Finances and receipts are detailed for each event
  • Bank Statement – Official bank statement outlining any deposits and transactions on your group's bank account
  • Receipts – Original receipts are preferred, but copies may also be accepted
  • Letter to the Auditor – Letter explaining financial decisions and bank statements to provide further insight and justification, written by the individual(s) who prepared the audit
  • Contact Information – Provide the contact information of the individual(s) who prepared the budget, in case the auditor needs to reach out for further information

UTMSU Audit System

Financial Statements, bank statements, budget vs. actuals, and original receipts must be submitted to the UTMSU office as part of the auditing package by mid-January. Non-submission will result in loss of the remaining funding through the Clubs Committee.

Financial Statements will be audited by the UTMSU Audit Team and audits will be approved by the Clubs Committee before the other 40% of funding is released. Auditing of Financial Statements will take two weeks. The VP Campus Life or designate will provide a more detailed and specific list of important deadlines.

Failing the audit or failure to provide the correct information for the audit may result in losing further funding from the Clubs Committee, both the remaining 40% and any short term requests for financial assistance. The club also risks losing credibility, which could result in future implications when considering spending habits for financial assistance.

Financial Statements

In accordance with organizational practices, all Club Financial Statements must be typed. Clubs must submit their financial documents in a physical printed form since online submission unnecessarily complicates the processes of audit and re-recognition. The UTMSU Campus Groups Coordinator reserves the right to reject any Club Financial Statement that does not meet specific standards.

A workshop on creating a financial statement for student groups will be held by the UTMSU and will be mandatory for financial officers of each group to attend. Financial Statements must be submitted to the UTMSU office as part of the year-end and (re)recognition package audit process.

Financial Statements must include the following:

  • The planned budget and expenses for events of the term(s) – a detailed breakdown of these expenses (this is submitted with the re-recognition package, though the club will be required to re-submit this for the audit)
    • Ensure everything is labelled and dated
  • The actual expenses for events held in the term(s) – a detailed breakdown of all expenses, separated by event
    • A separate expenses tab must be created and filled out for every event held by your group
    • Ensure that all group expenses are accounted for on the event tabs
  • Bank statements and original receipts supporting expenses for each event
    • Ensure to label all receipts as follows:
      • Event 1: first expense e1a, second expense e1b, etc.
      • This label should be found on the corresponding event expenses tab as well as shown on the Bank Statement
  • The amount of money received by the club through UTMSU to date
  • Total amount spent during the year
  • Bank Transition Letter
  • Contact information of the creator of the financial statements (i.e. Treasurer or VP Finance).
  • Letter to the Auditor – a letter explaining financial spending and bank statements, signed by the individual who has prepared the financial documents.
  • *Revenue – Revenue may be noted as a part of a specific event or may be made into its own "event" depending on the purpose and source of the revenue
    • Revenue can come in the form of ticket sales, donations, or sponsorships
      • Ticket Sales: Keep track of your sales! (Excel Sheet, Ticket Stubs, Receipt Book) 
      • Donations: Record the amount, date, and name. A cheque is preferable. 
      • Sponsorship: Keep a copy of sponsorship agreements. Record the dates and amounts as well as a copy of cheques cashed. If the sponsor provides free food, get an estimate of the value (eg. how much food, total cost, etc.)

Receipts

It is imperative that the individual(s) responsible for financial matters, or any other executive or associate who carries out a purchase, keeps a receipt. These pieces of source documentation serve as legitimate proof that a transaction has occurred. Keep in mind that original receipts hold a higher ranking in the spectrum of reliability as opposed to copies of those receipts. Therefore, you are encouraged to submit original receipts; however, if unable to do so, copies can still be accepted during your audits.

As a healthy practice, the UTMSU encourages club executives to start preparing the audit documentation as your events progress throughout the academic year. For instance, after a social occurs, fill out the financial statements and event breakdown and attach the respective receipts. In addition, the audits speak for themselves and it is evident that a lot of Campus Groups tend to organize their audit packages at the last minute. In order to avoid late submission of these packages and to avoid a messy audit package, as a good financial practice, the UTMSU recommends that you organize your financial information as soon as possible.

Itemized and Proof-of-Purchase Receipts

Itemized receipts provides a list of the exact items that were purchased as a part of the financial transaction along with the price of each item. A receipt with proof-of-purchase shows proof that the transaction occurred (eg. contains card information with last digits blurred out). 

Submitted receipts must include both of the above information. This can include a single receipt that lists all items and show proof of purchase or two separate receipts, one itemized and one showing proof of purchase.