- Obtain an annual financial audit, review or compilation by an independent certified public accountant or a qualified accounting professional, in a manner appropriate for the scale of the land trust.
Background
To protect the users of financial statements against any biases of the financial manager or outright misrepresentation by the organization, it is important to have an independent certified professional accountant or other qualified financial professional conduct a yearly audit or review of the organization’s financial systems. An audit is the most extensive form of financial review and is often recommended for organizations with incomes of more than $250,000—although some provinces and public funding programs have lower thresholds. A financial review is a less costly option and suitable for smaller organizations. Where possible, all land trusts should consider a yearly audit, rather than a review. A financial advisor can help determine what approach is best for the land trust. Both a financial review and audit should be performed by a qualified certified accountant.