Permanently restricted funds. Amounts which donors specify may not be spent. Only income from these funds may be spent for either specified or unspecified purposes. The chart shows at a glance a summary of the charity's financial activities. This section indicates comments Tzedakah Reports wishes to make.
Notes can include important hints for better understanding the financial statements.
The most rigorous form of outside accounting review is the audit which involves an examination of the organization's financial statements. An audit includes independent verification, on a test basis, of evidence supporting the amounts and disclosures made in the financial statements. For example, letters are written to banks, suppliers, creditors, donors, etc. to confirm that amounts reported to the auditors are correct. Each audit results in an opinion as to whether the financial statements fairly reflect the financial position of the organization. Tzedakah Reports indicate any problems auditors have with financial statements.