An association and a company for public benefit (חל"צ) are entities that manage activities and assets of public interest. To ensure oversight of their activities, the Associations Law stipulates, among other things, that each such body shall have an audit committee composed of association members who are not involved in the day-to-day management of the association/חל"צ. The law allows for the appointment, in lieu of an audit committee, of an "auditing body" which is a certified public accountant.
The supervisory body is responsible, among other things, for examining the proper functioning of the association and its institutions.
According to our worldview, it is important to remember that the supervisory body replaces the audit committee, which was previously appointed from among the association's members. Its role is not limited to performing oversight as an external body, but rather it must understand and identify with the organization's goals. It must exercise discretion and adapt the discussion to the environment in which it operates in order to achieve social goals. For example: the effectiveness of the activity must be examined with the understanding that some of the decisions are not made solely on the basis of economic considerations and efficiency.
The main topics we focus on as a supervisory body are:
- Testing organizational compliance with proper management principles - in accordance with written and oral Torah, and ongoing consultation on this matter.
- Reviewing the implementation of the association's recommendations.
- Examining the need to conduct a risk survey - for both management and audit purposes. Where a survey is required, ensuring that an effective and targeted survey is conducted.
- Review and discussion of financial statements, including budget statements.
- Looking through the lens of an audit committee (and not necessarily of the external auditor).
- Understanding organizational needs and proposing solutions for their implementation.
- Addressing deficiencies in the association's management and proposing ways to rectify them.
- Appointing an internal auditor along with the association's committee.
- Discussion on the internal auditor's audit plan to ensure that the time dedicated to internal audit is utilized by distinguishing between the primary and secondary tasks, and in an effort to ensure that internal audit adds value to the organization.
- Support for exceptionally large projects (such as building acquisition, renovations, establishing new operations)
- Responding to ongoing issues that arise in accounting, control, taxation, work processes, and more.
- Assisting an organization in thinking about ways to generate revenue, save costs, and measure operational efficiency.
Barzily Partners serve as an auditing body for non-profits and other organizations in various fields of activity, some of which are leaders in their domain. We bring added value to the discussion table, thanks to knowledge and experience accumulated over decades and through providing service to hundreds of social organizations.
