Organisations guide

The organisation guide contains information for organisations operating within OYY. Here you will find information and tips, whether you are a new or an experienced active in an organisation!

Accounting and financial statement

The accounting of an association is regulated by the Accounting Act and the Associations Act. An association must apply double entry bookkeeping and follow good accounting practice. It is advisable for an association to maintain accounting records continuously throughout the year to make it as easy as possible to draft the financial statement at the end of the financial year.

The Accounting Act also determines the contents of the financial statement. The financial statement must be ready within four months from the end of the financial year. The financial year typically lasts for one calendar year unless stated otherwise in the association’s rules. It is advisable that the treasurer of an association familiarise oneself with the Accounting Act right away.

The Accounting Act

Performance audit

The Associations Act and the Auditing Act jointly determine the carrying out an audit of the association’s performance and finances. An association must at least have a performance auditor, but in certain cases the association is also responsible for financial auditing. For more information, refer to the Auditing Act. The qualifications of performance and financial auditors are determined in the Associations Act and the Auditing Act.

The aim of a performance audit is to examine the association’s finances and administration. The audit determines whether the association has suffered damages or whether the association’s rules and regulations have been violated during the term. The financial statement must be forwarded to the treasurer at the latest one month before the association meeting during which it is due to be approved. Such a deadline has not been specified for a performance auditor, but a month-long review period is a good rule of thumb in this case as well.

The Board of an association must provide assistance for the performance auditor in carrying out their tasks. This means, e.g., supplying the performance auditor with materials and additional information to the requested extent. The performance auditor has an obligation to maintain secrecy over the materials being audited. Also, the performance auditor has the right to be present and speak during the association meetings where matters relating to their duties are dealt with.

The book Yhdistystoiminnan käsikirja (written by Kari Loimu) contains guidelines for performance auditors. The book can be checked out, e.g, from the university library.

Auditing Act