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Compliance & Auditing

Complete audit trails, compliance tracking, and regulatory reporting with built-in controls for separation of duties and vendor management.

Audit & Compliance Capabilities

Comprehensive Audit Trails

Every action — from first draft save through final payment — logged with user, timestamp, and comments, anchored to a human-readable draft code

Change Tracking

Field-level changes captured with before/after diffs, actor, and timestamp — with draft ownership locked to the original requester no matter who edits

Real-Time Visibility

Export audit logs to Excel for board reviews, grant audits, and regulatory compliance

Data Integrity

Accounting exception workflows ensure corrections are tracked and approved

Built-In Compliance Controls

Separation of Duties

  • Users cannot approve their own transactions
  • Approval authority assigned by role and delegation rules
  • Multi-level approval prevents single-person control

Documentation Requirements

  • Flexible documentation requirements per transaction type
  • Vendor compliance document tracking with expiration alerts
  • Custom compliance field validation
  • Dedicated audit log architecture ensuring consistent logging across all major transaction types

Exception Management

  • Flag and document accounting exceptions with reasons
  • Manual check-in exemptions for non-tangible items with mandatory documented reasons
  • Review and correction workflows for discrepancies
  • Exception tracking and audit logging

Vendor Compliance

  • Configurable vendor compliance flags and alerts
  • Document expiration tracking with automatic notifications
  • Vendor change history with field-level tracking

State & Federal Regulatory Compliance

Approvaly helps nonprofits ensure state and federal compliance requirements are actively monitored and assessed — not just documented once and forgotten. Every registration, filing, and grant obligation is tracked, checked on an ongoing basis, and reported when auditors ask.

State & Federal Requirement Tracking

  • Charitable solicitation registration requirements tracked for every state where you operate or fundraise
  • Federal filing obligations monitored — IRS Form 990 schedules, employment tax filings, and grant-related reporting
  • State annual report, charitable registration, and raffle/auction permit deadlines maintained in one register
  • Requirements mapped to the responsible staff member so nothing slips through the cracks

Active Monitoring & Assessment

  • Regulatory requirements are actively monitored — not filed away — with status assessed on an ongoing basis
  • Periodic compliance assessments verify that registrations are current, filings are on time, and controls are working
  • Grant compliance (including Uniform Guidance / 2 CFR 200 requirements) checked against actual spending and approvals
  • Risk-rated dashboard flags gaps by severity so leadership sees exposure before a regulator does

Deadline Alerts & Renewal Reminders

  • Automatic notifications ahead of every state and federal filing deadline, with escalation if unaddressed
  • Registration and license renewals tracked with expiration warnings well before they lapse

Audit-Ready Evidence & Reporting

  • Every monitoring check, assessment, and corrective action is logged with user, date, and outcome
  • One-click exports give auditors, grantors, and boards proof that requirements were actively monitored
  • Board-ready compliance reports summarize status across states, federal filings, and grant obligations

Accounting Exception Workflow

Exception & Correction Workflow

Finance managers can flag transactions for review, correction, or exception handling with required documentation and approvals.

Flagging: Finance staff mark transaction for review with required reason
Status Change: Transaction status changes to reflect exception state
Audit Trail: Exception flagged and tracked in comprehensive audit log
Notification: Automatic notification to transaction owner with exception details
Tracking: Exception reason, date, and reviewing officer logged for audit purposes
Reporting: Exceptions visible in compliance reports and dashboards

Vendor Compliance Tracking

The system automatically detects and flags vendor compliance issues:

Missing Documentation

Required vendor compliance documents not on file (e.g., tax forms, authorizations)

Expired Authorization

Payment authorization or compliance documentation has expired

Expiration Warning

Document expiration is within 30 days; renewal needed soon

Compliance Hold

Payment cannot be processed until compliance requirements are met

Ensure audit-ready compliance with every transaction

Approvaly's compliance framework gives you the visibility and controls auditors expect.