Report of the Audit Committee
June 4, 2005
1. AUTHORITY
In accordance with WACO bylaws [VI.2], the Chair requested that
the Vice Chair establish an Audit Committee at the board meeting
held on April 18th, 2005.
2. EXPERIENCE
The members of the Audit Committee have current and prior
experience in the banking industry and in the development of
accounting and financial control systems. The committee is
therefore valid in terms of the bylaws, which require at least
one member to have a financial background.
No members of the Audit Committee are members of the Ways and
Means Committee.
3. FINDINGS
The Audit Committee met on four separate occasions and examined
financial records including bank statements, tax returns,
disbursements (check copies) and receipts of the Organization,
covering the last fiscal year. In addition, the same records
were also examined for the Trails Committee.
3.1 WACO
The Committee finds the books of the Willow Area Community
Organization to be in GOOD ORDER with nine recommendations.
3.2 Trails Committee
The Committee finds the books of the Willow Trails Community to
be in GOOD ORDER with one recommendation.
4. RECOMMENDATIONS
The Audit Committee understands that book keeping and related
activities are performed by community volunteers. The
Committee’s recommendations will, if adopted, improve the quality
of information returned to WACO, establish better cash controls,
and make subsequent audits easier.
4.1 WACO
Some of the recommendations below are specific to WACO. Those
related to record keeping and cash controls, however, should
apply to any committee of WACO that maintains financial records.
4.1.1 Budget. It is recommended that the Treasurer provide an
annual budget for WACO to assist in determining the status of the
treasury against anticipated expenses.
For the current fiscal year, it is suggested that prior year
actuals be used in determining an initial budget.
4.1.2 Financial Reporting. The monthly financial report
presented to WACO should include month, year-to-date and budget
figures.
4.1.3 Cash Controls. For each WACO sanctioned event that
collects monies on behalf of WACO, one or more deposit slips
should be completed and signed by both the depositor and the
Treasurer or member of the Treasurer’s committee/staff.
It is strongly recommended that the Treasurer appoint a staff to
assist with deposit collection and reconciliation for the
duration of the Winter Carnival.
4.1.4 Record Keeping. Receipts, disbursement records, bank
statements should be kept by account within fiscal year.
All such documents should be clearly dated.
4.1.5 Expense Recording. Any expense reported to WACO should
require a covering form that is annotated with the check number
and signed by the recipient.
4.1.6 Transfers. There should be no transfers between Gaming
and Current accounts. Instead a check should be drawn and a
subsequent deposit made in order to provide a suitable audit
trail.
4.1.7 Record Copying. In no case should a check or similar
document be copied in color. In all cases such copies should be
clearly marked VOID.
4.1.8 1099′s. WACO is obligated to provide IRS form 1099 to any
individual receiving cash or goods with a value in excess of $600
for the prior calendar year. Such forms must be completed by
January 31st.
4.1.9 Account Signatories. WACO should advise MVFCU of current
signatories to checks so that their records are accurate.
4.2 Trails Committee
While the Trails Committee submits original receipts when seeking
reimbursement from grants, the Audit Committee recommends that
the ``Expense Recording’‘ procedure above be followed.
It should be noted that, in preparing for this audit, the Trails
Committee had already decided to adopt such a procedure.
5. SUBMITTED
In submitting this report, please note that the members of the
Audit Committee are prepared to assist in the implementation of
the recommendations above.
WACO Audit Committee, 2005
Ways and Means Committee
Mike Bishop, Treasurer, WACO
Phone:5737 Email: tres@waco-ak.org
Krista Grilliot • Ronnie Widner
