Exploring the accountability relationship between non-profit organisations and the state auditor

Abstract

This article explores the accountability relationship between the state auditor’s office and non-profit organisations by examining the audit reports prepared by the North Carolina State Auditor’s Office for non-profit organisations from 2009 to 2018. The data collected for this study show that the extent to which the state auditor conducts audits of non-profit organisations is fairly limited. Yet, when it does audit them, it is doing so to police their behaviours, monitor their expenditures and ensure that they are being good stewards with the resources they have been given. The findings from this study have important implications, in that they suggest that other accountability mechanisms continue to be important, including: training and education for board members about their legal and fiduciary responsibilities; the importance of adhering to best practices and standards; and the important role that third-party watchdog organisations and accreditors can play in ensuring non-profit accountability.