PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Presented by
Cherrieann D. Diaz
Grand Auditor
1
PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
 Basic Audit Procedures for All Chapters
 Audit Committee
 Requires Three Chapter Members
 Appointed Annually by the Worthy Matron
 Beneficial if one member is retained from prior
year for continuity
2
PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
 Basic Audit Procedures for All Chapters
 Audit Committee Shall
 Audits all books and records of Treasurer
 Audit all books and records of Secretary
 Audit all fund raising committees handling chapter
funds
3
PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
 Basic Audit Procedures for All Chapters
 Audit Committee Shall
 Report findings and make applicable
recommendations to the chapter
 Analyze funds due to the chapter, such as;
membership dues, ticket sales, and fines
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Audit Procedures
 Must be in accordance with the Constitution and
By-Laws of the Prince Hall Grand Chapter, Order of
the Eastern Star, Rite of Adoption, Hawaii and it’s
Jurisdiction, Inc.
 Chapter books must be audited twice each year
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Audit Procedures
 Audit should commence at the close of the May
and November meetings
 Report of the Audit Committee must be in writing
 Report given in June and December (before
elections of officers in the December meeting)
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Purpose of an Audit
 To ensure the polices and guidelines are being met
 Identify any discrepancies
 Ensure proper corrective actions are taken in a
timely manner
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Guidelines for Auditing
 Have entrance Meeting with Secretary and
Treasurer
 Outline audit plans and procedures to be used
during the audit
 Provides officers an opportunity to explain any
known discrepancies or new processing procedures
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Guidelines for Auditing
 Review the auditing checklist to ensure all records
have been turned over to Audit Committee
 Note any discrepancies and or incomplete data
prior to starting the audit
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Treasurer
 Receipt book
 Treasurer receives from Secretary all funds
turned in to the chapter
 Treasurer gives Secretary a receipt at the end of
each meeting or when Secretary gives Treasurer
any funds
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Treasurer
 Treasurer receives monies from fund raising
committees, if Secretary is not available
 Treasurer gives Secretary a receipt to ensure
timely deposit and safeguard of funds
 Treasurer must have a separate receipt book if
receiving monies from fund raising committees
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Deposit Slips
 All funds must be deposited in the chapter
account within 72 hours in designated bank
 Duplicate copies of the deposit slips and or
bank deposit receipts are given to Secretary
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Drafts/Warrants/Vouchers
 Are supporting documents used to ensure a
true and accurate account?
 Shows all monies paid out on behalf of the
chapter
 Funds are paid out “only” upon a vote of the
chapter and after a proper draft
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Drafts/Warrants/Vouchers
 Warrant or Voucher have been properly signed
by Secretary and countersigned by Worthy
Matron
 Warrant and Voucher should be maintained in
numerical order
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Check Book
 Cancelled checks should be attached to the
check stubs in check book or numerical order in
a file case
 If checks are not returned by bank; keep all
bank statements on file with copies of checks
 Bank statements are used to reconcile
books/balances with bank statements
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Record Book/Computer Ledger/Journal
 Postings should include a true and accurate
account of all monies received
 All monies paid out
 All bank entries like interest or bank charges
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Record Computer Ledger/Journal
 Records must include
 Balance brought forward
 Receipts
 Deposits and interest
 Disbursements
 Payee, Date Drawn, Check Number, and
amount
 Credits back and returned checks
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Record Computer Ledger/Journal
 Records must include
 Ending balance
 Bank reconciliation
 Earmarked funds
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Bank Statements
 Should be balanced with books immediately
upon receipt
 Statements should be maintained for historical
purposes
 Statements should be presented as part of
audit records
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Income Tax Annual Electronic Notice
 All chapters are required to file form 990-N
e-postcard on May 15th of each year
 Treasurer maintains copy of the receipt which
shows date Form 990-N filed with IRS
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Members ledger and binder with membership
ledger sheets on each member
 Roster with up to date listing of all members
 Receipt Book written in duplicate. Original to
member, copy kept in receipt book
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Treasurer’s receipts kept in folder or some type
of file in date order
 Draft/Warrant/Voucher
 Document written for each disbursement
upon a vote of the chapter
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Draft/Warrant/Voucher
 Treasurer writes check and keeps original
warrant
 Secretary keeps stubs of the warrant or
disbursement order
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Journal – Cash ledger book to list monthly
activity
 Receipts and disbursements
 Items reflected on bank statements
 Interest and bank charges
 Earmarked funds
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Minute Book – a bound record book in which
minutes are recorded for regular and special
meetings
 Reports – Election, Annual returns, Audit,
Annual Membership, all reports with
supporting documentation from committees
handling funds
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Bonding – Documentation showing all fiscal
officers are bonded in accordance with the
Constitution and By-Laws of Prince Hall Grand
Chapter, Order of the Eastern Star, Rite of
Adoption, Hawaii and its Jurisdictions Inc.
 Tax Exempt Status from IRS
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Records required from Secretary
 Inventory List – Detail list of all
items/paraphernalia belonging to the Chapter.
 Exit Meeting – Worthy Matron, Secretary and
Treasurer are given opportunity to respond
prior to final report to chapter
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
 Examples of Improprieties
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Required signatures not on checks
Bank Statement not reconciled
Missing member ledger sheet
Bank deposit receipts maintained by Secretary and not
Treasurer (both should get a copy)
 Interest or bank charges not shown in Secretary report
(Treasurer did not pass information on)
 Returned checks not shown on Secretary records (Treasurer did
not pass this information on)
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PRINCE HALL GRAND CHAPTER
ORDER OF THE EASTERN STAR, RITE OF ADOPTION
HAWAII AND IT’S JURISDICTION INC.
Basic Audit Procedures for All Chapters
QUESTIONS
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