For nonprofits operating on a June 30 fiscal year, the next two weeks are among the most concentrated periods of financial management work in the entire annual calendar. The goal is deceptively simple: arrive at July 1 with clean, complete, audit-ready books. Getting there requires deliberate action across four distinct areas, starting now.
June 30 is not simply an accounting date. It is the point at which grant funds expire, funder reporting obligations come due, board approvals must be in place, and auditors begin their engagement clock. Organizations that treat it as just another month-end close typically discover the consequences the hard way in July.
Area 1: Grant Expenditure Documentation
Every grant that closes on June 30 must have its expenditures fully documented, correctly coded to the right grant and program, and supported by receipts, payroll records, and time sheets. This is not optional and it is not something that can be reconstructed after the fact with acceptable results.
Two specific situations require immediate attention. First, expenses incurred before June 30 but not yet posted in your accounting system need to be accrued before the books close. An expense that happened in June belongs in the June financial statements, regardless of when the invoice was received or processed. Second, grant funds that were not spent by June 30 may need to be returned to the funder or may require a formal no-cost extension request. Check every open grant agreement now. Discovering an unspent balance on July 2 is far more difficult to address than on June 20.
| Grant Documentation Item | What to Verify | Deadline |
|---|---|---|
| All expenditures coded correctly | Grant code, program code, and period match grant agreement | June 27 |
| Receipts and payroll documentation | All transactions supported; no gaps in backup | June 27 |
| Accrued expenses posted | All June expenses incurred but unpaid are recorded | June 30 |
| Unspent balance review | Identify any grant with remaining funds; determine if return or extension is needed | June 20 |
| Reimbursement requests submitted | All reimbursable expense requests submitted to funders per agreement terms | Per grant terms |
Grant expenditure coding errors discovered during an audit are among the most common findings for nonprofits receiving federal funding. Our nonprofit accounting team works with organizations throughout the year to maintain grant coding accuracy so that June 30 is a confirmation, not a correction. Talk to us about monthly grant tracking.
Area 2: Month-End Close for June
The June close is not different in kind from any other month-end close. It is different in consequence, because it sets the opening balance for the new fiscal year and forms the foundation of the audit. Every item that is inaccurate at June 30 becomes an audit finding or a prior-year adjustment in the new year.
A complete June close requires:
Bank & Investment Accounts
- All accounts reconciled through June 30
- Outstanding checks and deposits identified
- Investment account statements obtained and posted
- Unrealized gains and losses recorded if applicable
Payables & Receivables
- All accounts payable posted through June 30
- All accounts receivable posted and aged
- Uncollectable receivables identified for write-off or reserve
- Pledges receivable updated for new and lapsed commitments
Payroll
- Final June pay period posted correctly
- Accrued vacation and PTO liability updated
- Payroll taxes reconciled to payroll reports
- Employee benefits costs allocated correctly
Journal Entries
- Depreciation recorded for the month
- Prepaid expense amortization posted
- Deferred revenue schedule updated
- All accruals reviewed and posted
For organizations on accrual basis accounting (required for most audited nonprofits), completeness of accruals is particularly important. Revenue earned but not yet received and expenses incurred but not yet paid both belong in the June financial statements.
Area 3: Audit Readiness
Nonprofits required to have an annual audit should expect auditors to begin fieldwork within 30 to 60 days of fiscal year-end. The primary triggers for a required audit are: $750,000 or more in federal expenditures in a fiscal year (which triggers a Single Audit under Uniform Guidance); requirements from major funders or state law; and board policy. Check your grant agreements and state filings to confirm your current-year obligation.
Audit readiness at June 30 means three things:
Every account on the trial balance should have a corresponding supporting schedule. Auditors will request schedules for cash, receivables, fixed assets, payables, deferred revenue, and net assets. If those schedules do not exist or do not agree to the trial balance, the audit will be delayed and you will spend the first weeks of July building them under pressure.
Each balance sheet account must reconcile to an independent source: bank statements for cash, lender statements for loans, asset registers for fixed assets, and aging reports for receivables and payables. Auditors test these reconciliations first. Unexplained differences signal control weaknesses and trigger additional audit procedures.
Major transactions during the fiscal year, including large grants received, significant purchases, loans, and board-approved actions, should have supporting documentation organized and accessible. Auditors work most efficiently when an organization has a well-organized audit binder or shared drive ready at the start of fieldwork. Every hour spent locating documents during the audit is an hour of fees.
Virginia nonprofits soliciting charitable contributions are required to register with the Virginia Department of Agriculture and Consumer Services and file annual reports. Organizations with gross contributions above $750,000 must file audited financial statements with their annual registration renewal. The fiscal year-end close and the audit are directly connected to this filing obligation. Confirm your registration renewal deadline with your accountant.
We prepare audit-ready trial balances and supporting schedules for nonprofit clients as part of our standard year-end close process. If your June 30 close is behind schedule or your audit is approaching and your books are not ready, contact us now to discuss what a catch-up engagement looks like. Early July is our highest-demand window — capacity is limited.
Area 4: Board Approvals
The June 30 close triggers several governance actions that require formal board approval. These cannot be accomplished by staff alone and require scheduled meetings, quorum, and recorded votes.
The most time-sensitive items are:
New-Year Budget Approval
- Board must formally approve the operating budget for the fiscal year beginning July 1
- Budget should be based on actual current-year performance, not prior-year projections
- Finance committee should review before full board vote
Audit Engagement Letter
- Board or audit committee must review and approve the audit engagement letter from the external auditor
- Confirm the audit firm, scope, timeline, and fee
- Signed letter authorizes auditors to begin fieldwork
Executive Compensation Review
- IRS requires that executive compensation be approved by an authorized body using comparable data
- Document the process and the comparability data reviewed
- This protects the organization from intermediate sanctions penalties
Major Contracts & Renewals
- Any contracts, leases, or major vendor agreements beginning in the new fiscal year requiring board authorization
- Insurance renewals, banking relationships, and significant service agreements
- Board minutes must document all approvals
The Year-End Close in Perspective
The organizations that arrive at June 30 in the strongest position are those that have maintained discipline throughout the year: monthly closes, regular grant tracking, reconciled accounts, and an engaged finance committee. For those organizations, the final two weeks are a confirmation sprint, not a crisis response.
For organizations that have let the books slide during the year, the next two weeks are harder but still manageable with focused effort and the right support. The key is to triage accurately: grant documentation and the month-end close are non-negotiable. Board approvals have fixed deadlines determined by meeting schedules. Audit readiness can continue into early July if fieldwork has not yet begun.
Our CFO Advisory engagements for nonprofits include year-end close project management: coordinating with auditors, preparing supporting schedules, drafting board finance committee reports, and managing the grant documentation process. If your organization needs senior financial oversight for the July 1 transition, let's talk now.
Action Steps: Your Two-Week Sprint Plan
Identify any grant closing June 30 with an unspent balance. Contact funders now about no-cost extensions or return requirements. This window closes fast and funder response times vary.
Pull all receipts, payroll records, and time sheets for grant-funded activities through June 30. Verify coding in your accounting system. Identify any expenses that need to be accrued.
Reconcile all bank and investment accounts. Post all payables and receivables. Record depreciation, prepaid amortization, and all June accruals. Run a preliminary trial balance and review for anomalies before closing the period.
Budget approval, audit engagement letter, and executive compensation review all require board action. Confirm quorum, prepare materials, and distribute the board package at least one week before the meeting.
Once the June close is complete, organize your audit-ready package: trial balance, bank reconciliations, supporting schedules for all balance sheet accounts, grant expenditure reports, and documentation for significant transactions. Have it ready before auditors arrive.
Need Support for Your June 30 Close?
EveryCentCounts provides nonprofit accounting, bookkeeping, and CFO Advisory services that make year-end close a system, not a scramble. Our team works with Virginia nonprofits year-round to maintain audit-ready books.
Book a Free ConsultationReferences
- Office of Management and Budget ( OMB). 2024. “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.” 2 CFR Part 200. ecfr.gov.
- AICPA. 2025. “Not-for-Profit Entities: Audit and Accounting Guide.” aicpa-cima.com.
- IRS. 2026. “Form 990: Return of Organization Exempt from Income Tax.” irs.gov/forms-pubs/about-form-990.
- Virginia Department of Agriculture and Consumer Services. 2026. “Charitable Solicitation Registration.” vdacs.virginia.gov.
- Financial Accounting Standards Board ( FASB). 2024. “Accounting Standards Update 2016-14: Not-for-Profit Entities.” fasb.org.
- National Council of Nonprofits. 2025. “Nonprofit Audit Requirements.” councilofnonprofits.org.