Purpose:
This ‘agreed upon procedure’ audit was conducted to verify, via a review of the Name of
Section’s consolidated financial reports and supporting documentation, that they fairly reflect the results of its financial operations for the period under review.
Scope:
The audit reviewed the Section’s consolidated financial reports and records and evaluated the following for accuracy and effectiveness of associated controls:

Processes for analysis of budget vs. actual receipts and disbursements.

Mathematical accuracy of annual financial reports.
 Review of the Section’s Committee Meeting Minutes.

Timeliness of deposit and recording of:

Rebates received from IEEE

The Section’s share of conference surplus

Other Section receipts

Timeliness and accuracy of reconciliation of the Sections checking accounts.

Proper recording and administration of the Section’s savings and investment accounts.

The Section’s disbursement process to test adherence to the terms and conditions of applicable agreements as well as the existence of controls to avoid duplicate payments, etc.

Significant furniture and equipment purchases and sales.

Documentation related to loans and advances made and repaid for conferences held in the Section’s geographic area.

Completion of Tax on Assessment of chargeable income based on rates for a association 2008.
Appraisal:
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The Section Chair and Treasurer are responsible for establishing and maintaining adequate internal control of management and reporting processes for the Section’s financial activities. The IEEE Section Chair, with Member & Geograhpic Activities
Department provided oversight, maintains effective internal controls over these activities.
Because of inherent limitations, internal control over financial reporting processes may not prevent or detect misstatements of all associated financial results. Financial transactions were:

In compliance with applicable IEEE Policy and Procedures.

Adequately supported by appropriate documentation.
Findings:
1.
Budgeting Process and Mathematical Accuracy of Annual Financial Reports:
The IEEE Section submitted the 2008 budget and L50 report for audit. These documents were prepared by the Section Chair and approved by the Section’s Operating Committee.
IEEE Controllers Department reviewed the L50 report and provided amendments that revised the report. The L50 reflected the Section’s financial results for the period ended
31 December 2008. For purposes of this review, the auditor compared the L50 report with the supporting documentation and records for that period. Monthly financial reports were not requested for the audit.
Total revenues, per the L50 report, were Columbia 134,000,000 (US $62,000,000 calculated at the rate of .xx Columbia to USD), which agreed with the supporting documentation for yearend 2008. Total expenses, per the L50, were Columbia
294,000,000 ($135 million), which also agreed with the supporting documentation for yearend 2008. The Section’s cash accounts, as reported in the L50 (amount of Bolivar
XXX ($XXX), agreed to the balance in the checking accounts (per the copy of the bank statements in Bolivar) for the period ended 31 December 2008. Sections had no investments, as reported in the L50 and agreed to the balance in the IEEE Investment
Fund Statements. The L50 report reflects the results of the IEEE Section’s consolidated financial operations for the period of 01 January 2008 through 31 December 2008.
2.
Meeting Minutes:
The auditor reviewed the Section’s meeting minutes for items relating to its finances, including conferences, investments and financial planning. The Section’s minutes, received for audit, were complete and included appropriate detail. No deviations were found from the decisions, noted in the minutes.
3.
Section Bank Accounts:
The Section maintained several Sections bank accounts that include CTE and AHO
Banks. The bank statements, receipts and deposits were agreed to the Section’s check register. Bank signature cards are on file in the Section offices and copies of the cards are on file at IEEE Headquarters.
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4.
Timeliness of Deposit of Section Receipts:
The auditor selected a random sample of bank deposits, shown in the 2008 cash receipts journal, and agreed them to the monthly bank statements. The Section’s bank deposits were made on a timely basis. No significant delays were noted between receipt and deposit of the Section’s income. Payments, received for the Section’s share of conference surplus and IEEE rebates, were deposited in the Section’s checking account in a timely manner. The receipts were correctly reflected in the L50 report.
5.
Timeliness and Accuracy of Reconciliation of the Section’s Checking Account:
IEEE Internal & Operations Audit was provided all bank statements for the period ending
31 December 2008. Also provided for audit was the Sections check register. The bank statements for 2008 were reconciled to the Section’s accounting records (check register) on a monthly basis. Bank account reconciliations accounted for income earned from the interest from bank accounts that were correctly reflected in the Section’s accounting records. The L50 agreed to the 31 December 2008 bank statement copies.
6.
Custody Accounts (for geographic units in Regions 8-10):
The IEEE Section is in Region 9, in 2008, the Section did not have a Custody Account, and therefore, this audit test does not apply to it.
7.
Proper Recording and Administration of Section Savings and Investment
Accounts:
The Section’s did not have investments as of December 2008.
8.
Section Conference Revenues and Expenses:
The Section reported program receipts of Colombia XXX and expenses of XXX. The receipts and expenses were properly reflected in the financial reports.
9.
Loans, Advances and Significant Equipment Purchases and Sales:
Section has advances outstanding as of yearend 2008 totaled Colombia (see details below):

Conference Advance XXX (US $XXX)

Prepay expenses XXX (US $ XXX)
XXX Total US $XXX
10. Supporting Documentation and Review of the Section’s Disbursement Process:
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In order to assess disbursement process controls, the auditor selected a sample of the payments made during the period from 1 January 2008 through 31 December 2008. The following was performed:

All payments in excess of $2,000 USD (Colombia XXX) were reviewed for supporting detail, e.g., invoices, contracts, transactions via communications by emails, memorandums of understanding, etc.
Detailed support was provided for the disbursements over $2,000 (Colombia XXXX) from the Section’s checking accounts.
11. Review of W-9 and 1099 Forms:
The IEEE Section is in Region 9; therefore, this test does not apply to it.
12. Awards, Grants & Prizes in excess of $2000 ( Colombia 5,000):
Awards, grants and prizes for Colombia XXXX(US $XXX), issued by the IEEE Section for the period under review, were properly approved and recorded in the financial statements.
13. Mathematical Accuracy of Annual Financial Reports:
The Section Treasurer accurately prepared the L50 reports.
14. Income Tax:
The Section per the Revenue Authority of Colombia completed an assessment income tax based upon the chargeable income in the period. The Section has completed the required return and payments for 2007. The section has prepared an assessment return and has accrued Colombia for 2008.
15. Miscellaneous Items:
The Section received miscellaneous receipts for conference consulting, and
Accounting and professional fees 7,300
Supplies 157
Secretariat and Adm fees 11,067
_________________________________
Independent Auditor
_________________________________
Accepted by Section Chair/Treasurer
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