Annual audit checklist for savings groups and welfare funds
A practical year-end audit checklist for group funds — cash reconciliation, contributions, loans, welfare claims, shares, controls and the report to members.
An annual audit isn't about suspecting anyone. It's how a fund proves to its members that their money is where the books say it is. Use this checklist as the audit committee's agenda.
Before you start
- Get read-only access to all records: contributions, loans, repayments, welfare claims, share register, journal and audit log.
- Get statements for every bank and mobile money account for the full year.
- Get the minutes of meetings where loans, claims or rule changes were approved.
1. Cash: does the money exist?
- Closing balance in the books equals the bank + mobile money statements at year end.
- Every large movement on the statements matches a recorded transaction.
- No money is held in anyone's personal account.
2. Contributions
- Total contributions in the books match deposits on the statements.
- Pick ten random members and check their contribution history against payment references.
- Missed and late payments are recorded correctly, and standings reflect the rules.
- Any corrections have a reason recorded and were made by an authorised person.
3. Loans
- Every loan disbursed has a committee recommendation and a manager approval on record.
- No official approved their own loan.
- Interest was charged at the agreed product rate — spot-check using the method in flat vs reducing-balance interest.
- Repayments on the statements match repayments in the books.
- Overdue loans are identified; penalties were applied according to the rules.
- Any written-off loans were approved and recorded.
4. Welfare claims
- Each approved claim has supporting evidence and was within the member's remaining limit.
- Claimants were in good standing.
- Payouts on the statements match payouts in the books.
- The welfare reserve balance looks sustainable — see welfare packages explained.
5. Shares and member balances
- Total member savings in the books equals the sum of individual member balances.
- Shares were issued at the correct price for each period.
- Any bonus share grants were approved and recorded.
6. The books balance
- Total debits equal total credits in the journal.
- Assets (cash + loans receivable) equal savings + welfare reserve + retained income. See double-entry bookkeeping for savings groups.
7. Controls
- Two signatories were required for withdrawals.
- Roles were separated — see treasurers and committees.
- The audit log shows no unexplained edits or deletions.
8. Report to members
Write a one-page summary for the AGM: opening and closing cash, contributions received, loans disbursed and repaid, welfare paid, income earned, any issues found and recommendations. Share it with every member.
Common findings — and what they mean
| Finding | Usually means | Action |
|---|---|---|
| Cash in books ≠ statement | Unrecorded payment, reversal or fee | Trace and post a correcting entry |
| Contributions without payment references | Cash handling | Move to traceable payments |
| Loan approved without committee notes | Process skipped | Reinforce the two-step approval |
| Welfare over the member's limit | Limits not tracked | Track remaining cover per member |
| Totals don't add up across reports | Spreadsheet formula errors | Move to double-entry books |
An audit that finds small issues and fixes them is a success, not a failure. Report findings calmly, with recommendations and a date for follow-up.
With AwaFund, the audit committee gets its own read-only role with the books, the full audit log and CSV exports of everything — most of this checklist becomes a morning's work.
Frequently asked questions
Who should audit a group fund?
People who don't handle the money — an audit committee of members with no other office, or an independent person such as an accountant. Never the treasurer auditing their own work.
How long does an audit take?
With good records, a few hours. With a notebook or a messy spreadsheet, it can take weeks — which is itself a sign the records need improving.
This guide is general information to help groups organise themselves. It isn't financial, tax or legal advice — rules for savings groups differ by country, so check with a qualified adviser for your situation.