Sunday, October 2, 2011

Response to Audit Report

Response to Dogwood Audit Committee Report of June 2011
By Mann Duff

Special thanks go out to Dogwood's Audit Committee (Liz Jones, Mo Martin and Cil Schoolar) for their work and the resulting report of their findings during the audit of Dogwoods financial records.

Dogwoods Executive Board met on September 16 and discussed each of the findings and suggestions included in the report. Present were:  Mann Duff, President; Fairleigh Schoolar, VP Rallies; Carolyn Duff VP Communication and Treasurer; Carol Warthan, VP Membership; Karen Alexander, Secretary.  Ed Fisher, National Director was absent.

Below is a summary of the discussions and unanimous conclusions of the officers present.

  1. The audit detailed some missing and or incomplete Rally Expense Reports.    Those that were missing were either misfiled or not completed due to apparent misunderstanding of Dogwoods Standing Rules.  All reports as submitted are now a part of the Treasurers records and are available for review by the committee. One report remains incomplete with missing totals, receipts or explanations, signature and approval.
  2. One of the primary procedural suggestions involved cash transactions between a rally host and rally attendees. It’s not practical to correct this now but going forward, the Board agrees that the Standing Rules covering accounting procedures for rally hosts should be followed.
  3. Reports for miscellaneous expenses should include more detailed explanations for expenses. Explanations should detail not only what the expense was but should also explain the reason for expenses if not obvious from the nature of the expense. Standing rules will be amended to cover this point.
  4. There was at least one example of a rally where no monies were collected and no expenses incurred. The Audit committee recommends that an Expense Report be completed for every Dogwood Rally to facilitate audits and record keeping for the Treasurer. Standing Rules will be amended to cover this point.
  5. The VP Rallies should provide the required forms to rally hosts well ahead of the planned event so that the form may be completed as payments are received and as expenses are incurred. By doing this, it is only necessary to summarize the form at the conclusion of the event. This is covered in existing Standing Rules and rules will be followed in the future.
  6. The audit committee recommends that Dogwood's Treasurer be required to utilize Quicken for maintaining Dogwood’s financial records. This will help with continuity as Treasurers change. This is also the tool recommended by FMCA in the Treasurers guidelines. Standing rules will be amended to cover this point.
  7. Standing Rules will be amended to include requirements for backup procedures for chapter records maintained on magnetic media.
  8. The Audit Committee recommends changing Dogwood's Standing Rules regarding refunds of rally fees in cases where the member is unable to attend after paying for an event. Given that this has not been an issue, the board feels that the current rule covering this point is sufficient and allows appropriate discretion for rally hosts.

The text of the Audit committee’s original report is contained elsewhere on Dogwood's web site. Dogwood members are encouraged to read the report and this response and voice any concerns.

The original June 2011 Audit Report and this response will be retained in the Treasurer’s file for reference during future audits.