"The only place where success comes before work is in the dictionary." — Vidal Sassoon.
The Audit Chair is responsible for conducting a thorough review of VCC finances, ASAP after year end and producing a report to the Board.
Use the Treasurer’s job description as a base to verify that the job is being done accordingly
Divide up the task among the Audit Committee members, and then as a group write a report to the Board. The committee should maintain confidentiality at all times.
Spot check 16 to 25% (2 or 3 months) of the common financial transactions such as games fees, payments to directors and teachers, etc.
Spot check 25 to 50% of uncommon financial transactions such as reimbursements to card club members for expenses, card club parties, etc.
Identify financial transactions that are illogical and processes that could be improved.
Check the Big Picture:
1. Make certain the rent payments are current, as this now totals in excess of $35,000 per year.
2. Make sure the Discover card account has no outstanding balance.
3. Make sure payroll taxes have been paid.
4. Make sure yearly and quarterly tax returns have been filed and a copy made of each one.
Irregularities found should be categorized as follows:
Questions: Irregularities that are found that are unlikely to have any material impact on the finances of the club. These should be discussed by the Board to see what issues there are and what improvements could be made, if any.
Concerns: Irregularities that are found that are likely to have material impact on the finances of the club. Typically this would be larger than .1% of gross revenues. Also, irregularities in process that are small now but could lead to material problems. These should have prompt review by the Board to determine what the impact is and what improvements are needed.
Problems: Irregularities found which have direct material impact on the clubs finances and require immediate handling by the Board with the assistance of the Audit committee.