ASSOCIATION STRUCTURAL AUDIT

A structural audit, or review, is an opportunity for an association to stop and take stock of its strengths

and its weaknesses, and for leadership and staff to reach a clear understanding of those characteristics.

Just as people have physical exams even though they are not ill, so too does an organization need a

‘check-up’.

The structural audit does not have to take place annually, but might be considered after a new strategic

plan has been adopted as a measure of organizational capacity to achieve the plan, or an audit might

take place after a new CEO has been hired, so that everyone is clear on the state of the association at

this important juncture. Sometimes, the audit is ordered just because there is a need to stop and look

at the big picture instead of spending energy just fighting little fires.

In any case, the most valuable audits are conducted by an independent third party who can be analytical

and deliver a truthful and fair analysis based on an understanding of the organization and a familiarity

with it.

Over the years I have developed association auditing tools which address many facets of any

organization. Chief among those assessment tools are financial management, budgeting, auditing and

reporting, and internal controls. Other areas of structural audit scrutiny are:

1 The division of duties between directors and paid staff, and the staff morale and any

dysfunctions in staff or leadership

2 Compliance with legal and regulatory guidelines and laws

3 Policy Manuals, by-laws, and other governing documents

4 Quality of member service

5 Efficiency and effectiveness of programs and products

Generally a structural audit requires two or three days of interviews on-site, plus information gathering

before and after the site visit as well as an extensive written report.

The minimum cost for a Structural Audit is $3000 plus direct travel expenses. More complex and larger

associations may incur a higher cost.