Report of the Audit Committee
November 7, 2006
1. AUTHORITY
In accordance with WACO bylaws [VI.2], the Chair requested a
committee of three, Erin McLarnon, Mary Jo Arterburn and Shirley
Wakeman to conduct an audit of WACO, the Trails committee and
Willow 2020 for the fiscal year beginning April 1st 2005.
2. EXPERIENCE
The members of the Audit Committee have current and prior
experience in the banking industry. 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 seven separate occasions and examined
financial records including bank statements, tax returns,
disbursements (check copies) and receipts of the Organization.
In addition, the same records were also examined for the Trails
Committee and Willow 2020. The Committee finds the books of the
Willow Area Community Organization and its committees to be in
GOOD ORDER with recommendations attached.
4. PREVIOUS AUDIT
In reviewing the previous audit the following items were
completed.
4.1 Budget.
A budget was generated and approved at the September 6th WACO
meeting.
4.2 Monthly Reporting.
Reporting has included SOME of the breakdown requested.
4.3 Record Keeping.
Has been kept in monthly folders with copies of checks used to
pay invoices.
4.4 1099s.
Have been completed where necessary.
5. RECOMMENDATIONS
5.1 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.
5.1.1 Ways and Means Committee.
Should assist with keeping
monthly transactions, balancing monthly statements, handling cash
during special events and covering when the Treasurer is not
available.
5.1.2 Cash Controls.
These need to be tightened. It is very
important that all cash transactions be signed by the presenter
and receiver, then backed up by a deposit slip and filed in a
receipt folder.
5.1.3 Start-up Cash.
Should be obtained by a check. The person
receiving the cash should sign a receipt and return invoices etc
to verify expenditures.
5.1.4 Account Signatures.
Need to be current. Procedure should
be set up so this is done by April 15th of each year.
5.1.5 Reporting.
Reconciliation report should be done monthly.
Financial Report should show income as well as expenses.
5.1.6 Special Events.
A report should be generated the
following month showing total income and expenses. This will
assist in planning for the same event the following year.
5.1.7 Tax Reporting.
Should be completed by the required dates.
5.1.8 Expense Recording.
Any expense reported to WACO should
require a covering form that is annotated with the check number
and signed by the recipient.
5.1.9 Quick Books Pro.
WACO should purchase this or a similar
program to run on the office computer. This will make the data
available to all, make entering transactions easier and reporting
(including taxes) can be generated automatically. Current price
$300.
5.2 Trails Committee and Willow 2020
5.2.1 Financial information.
Should be submitted at least every
six months to WACO Treasurer. This data needs to be included in
the WACO Tax Return.
5.2.2 Monthly statements.
Should be balanced.
5.2.3 Expense recording.
Keep a copy of all invoices sent to any
resource for payment and match with deposit receipt. Keep in
monthly folder.
5.2.4 Computer program.
Use if it is purchased by WACO and take
monthly backups.
6. 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, 2006
Top
Ways and Means Committee
Mike Bishop, Treasurer, WACO
Phone:5737 Email: tres@waco-ak.org
Krista Grilliot • Ronnie Widner
