Why is it important for financial statements to be received and approved by the board within 6 months of year end? Nonprofit and charitable boards of directors are responsible for overseeing their organization’s financial affairs. While directors do not need to have a lot of expertise related to finance, they do need to know how to read and understand the financial information presented to them by staff.1 This standard ensures that boards of directors will receive, review and approve the organization’s financial statements before they must be submitted to CRA within six months of year-end (see Standard B4).
- “A Guide to Financial Statements of Not-for-Profit Organizations: Questions for Directors to Ask,” The Canadian Institute of Chartered Accountants.
Standards Reference Guide