As conducted by Management Cornerstones Inc., the management audit is an extensive, interactive examination of a nonprofit organization's corporate structure, administrative policies and procedures, as well as its staffing patterns and financial practices. The audit originally developed in 1985, has been updated several times to reflect our changing times.

In its entirety, or in components, the audit has been particularly useful for organizations that are encountering one or more of the following challenges.

	Reaching a self-defined major "turning point" in the organization's development
	Entering into long range or strategic planning
	Planning a change in organizational leadership or adjusting to new leadership on the Board or at the staff helm.
	Considering major structural or programmatic changes
	Experiencing a period of organizational uncertainty resulting from a loss of funding, program dissatisfaction or negative press.

The management audit is conducted through several activities.

	Interviews with 5-6 key Board Directors and management staff.
	Attendance at appropriate Board, committee, and staff meetings.
	Self-assessments by the Board of Directors and staff.
	Extensive examination of organizational documents including corporate, administrative, programmatic, personnel and financial records.
	Analysis of the data, interview and survey results.
	Preparation and presentation of a report outlining organizational strengths and weaknesses, along with specific recommendations for implementation by Board and staff.

A "typical" audit report is divided into four sections: Introduction, Findings, Recommendations, and Attachments. The length ranges from 50 to 150 pages, resulting from an in-depth investigative process. The audit documents and verifies many aspects of an organization and describes any limitations to the report.

	The introduction describes the methodology, as well as provides an overview of organizational strengths and weaknesses.
	The findings section outlines the "state of the organization" within seven critical nonprofit management areas: corporate structure/Board of Directors, programs and services, human resources, finance, fundraising and earned income, public relations, and planning.
	The recommendations detail objectives for the organization to implement, categorized by the same management areas. They provide specifics and a framework to tackle weaknesses and challanges to the organization.
	The attachments typically include general handouts that will assist the organization in the implementation of the recommendations, as well as specific memos or tools relating to the organization. These include items such as a review of bylaws; critique of a proposal; analysis of the executive's job description, etc.

It is Management Cornerstones' practice to make the audit an instructive process in addition to producing a useful document for the organization. Management Cornerstones' role is not merely to probe, it is to assist. Therefore, consultation to begin corrective action is often provided, even before the delivery of the report.

Participating in a management audit will take a serious investment of time and energy by the organization. It will require collecting all organizational documents for review by consultants at Management Cornerstones. Several Board Directors and management staff meet with consultants for an in-depth interview about their respective management areas. All Board Directors and management staff complete a self-assessment, which is an extensive survey soliciting input from key stakeholders. The result is a detailed document that is written as a teaching tool for the organization to better understand its own strengths and weaknesses. Most importantly, it provides a blueprint for action as the organization seeks to address the limitations that are identified.