audit recommendation - dump gnucash??

Liz edodd at billiau.net
Sat Apr 22 19:41:18 EDT 2017


On Sat, 22 Apr 2017 20:03:58 +0100
Wm via gnucash-user <gnucash-user at gnucash.org> wrote:

> On 22/04/2017 11:12, Jenny Redden wrote:
> > We are a small non-profit (cash strapped) sports federation in Laos
> > that has been using Gnucash for almost two years, and we are very
> > very happy with the results.  Previously accounts were maintained
> > in excel. 
> > 
> > We have just been through our first external audit, commissioned by
> > our main donor.  The auditors have included in their recommendation
> > letter that we abandon Gnucash and purchase a licensed accounting
> > system, the implication of using Gnucash being: "Any malfunctions
> > that occur arising from the use of the software may not be
> > rectified by the vendor on a timely basis and that may have an
> > adverse impact on the accounting records of the Organisation”
> > 
> > I’m wondering if others have encountered similar audit
> > recommendations, and how they have responded? 
> 
> I am in the UK and familiar with non-profit accounting in that
> country.
> 
> Your organisation should have trustees that appoint auditors and the
> reporting responsibilities should be clear.
> 
> The auditors do the work required of them by the trustees.
> 
> If the auditors are giving you crap raise the issue with the Trustees.
> 
> Hopefully you have good Trustees.
> 
> Accounting wise GnuCash is better than many commercial applications
> because it is transparent in what it does and generally neutral.  Good
> accountants and auditors like this, bad ones hate it.
> 

Jenny, before you can answer the auditors' "recommendation", you need
to look at the history. Your organisation was using a spreadsheet for
accounting. 
Who made the decision for the change from spreadsheet to formal
accounting package?
What was the list of packages examined for suitability?
How was the new package chosen?

From these answers you have a lot of material to present to your
Trustees on the basis of the choice of the management. Present these
arguments and the argument of the auditor. Do you still believe that
the best decision has been made?

Even if the result is related to cost, do not be put off by the
commercial world and its arguments. Did any other package offer the
versatility required of your non-profit accounting in Laos?

Liz


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