Finance & Audit Committee:
It is suggested that this person not be a current officer or board member. The committee may consist of one or two additional people.
The primary duty of this committee shall be to review the chapter’s financial records. This review should take place as soon as all the financial data is available in January.
Chapters are not legally required to have an audit or review every year. At times when the chapter is especially concerned about financial management, particularly when a new treasurer takes office, an audit provides greater assurance. Other years, a review may suffice. Your chapter should perform a cost/benefit analysis to determine whether an independent CPA should review the financial statements or if an internal review will suffice. The suggested review process is as follows:
Prior to the financial review the committee should obtain:
- Preceding year’s treasurer’s records
- Cash receipts and cash disbursements
- Supporting documents for receipts and disbursements
- Bank statements, checkbook, savings and loans statements, certificates of deposits, etc.
- Minutes of meetings for the period of the financial review plus any previous minutes which may have a bearing on any cash disbursement authorizations
- Copy of budget for the year under financial review
- Chapter Statements of Policy
- Any and all of the above as they may pertain to separate funds (workshops, convention funds, special events, etc.)
When conducting the financial review, note any approval authorization given by the chapter board, compliance with budget and a statement of policy which may be applicable to the treasurer’s function.
The financial review committee prepares a financial review report. The committee should note in the report any transfer of funds which may occur during the year due to a change in chapter treasurer. Also, the report may include comments such as recognition of good work, constructive suggestions, etc. The chapter does not need an independent auditor to do this report. A past treasurer or anyone with accounting experience may prepare the report. This committee may also help set financial policy and assist with the budget process.
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