.The Audit committee met on Thursday, January 9, 2014 at 7:30 pm for the task of
auditing the Tidewater Area of Narcotics financial books. The committee of three, Liz S.
Carlton, and Mark W were accompanied by Nina, Area Co-Chair and Teresa D., who
brought the records to the committee as Dora H., the Treasurer, was sick. The
Committee met on February 6, 2014 at 6:30 pm with the intention of completing the
audit of Area's records, present were: Liz S., Mark W, Nina J and Dora H.
Findings from the Committee: at the first meeting the records presented were
incomplete. Instructions were given to the Treasurer on how to expedite the audit as
well as how to maintain records. Dora readily followed instructions and the audit was
completed on February 6, 2014.
The audit period is June 1 threw December 31, 2013.
Documents presented were:
Current check book containing some check copies and all check stubs relating to
the audit period.
Bank Statements for two checking accounts, June through September (when it
was closed) for the old account and June threw November for the new account.
Cash Receipt books maintained by the Treasurer and by Literature.
Petty Cash receipt books.
Nina and Teresa D. were not a part of the audit team (as they handled money for
TASHA) but were present at the first meeting to answer questions that this team may
have had. At the second meeting neither Nina nor Dora were a part of the team but
were present to answer questions and observe.
At the time of this first audit meeting the following conclusions were agreed upon
by the audit committee:
That the cash transfer from the "old" account to the "new" account was
completed as of September 10, 2013.
That the "new" checking account check numbers started after the last check
number used in the "old" checking account.
A new checking account was opened as a result of the change in signers on the
account.
The signers on the account are: Dora H., Treasurer, Valerie S., Literature Chair,
Nina J, Co-Chair, and Fred J, Chairman of TASHA.
We were able to verify the deposit of Home Group donations for the month of
October 2013.
The following observations were made by the committee:
At the first meeting:
The records were in a state of confusion.
There were Cash Receipt Books missing from the documents presented.
There was poor organization to the receipts that were paid out of the checking
account.
There is a Checking Account Debit Card that is used for payment of Supermedia
($31.75) and OneBox Call Science (58.88), the Yellow Pages and the website,
these are reoccurring withdrawals from the checking account occurring at
approximately the same time each month.
Deposits were lumped together in the checking book and not listed singly which
would make a more accurate representation of reality.
Not all check copies were in the check book and not presented to the committee.
The minutes of the monthly meetings were not presented, Nina was going to
have the minutes sent to Liz S. via email. (At the time of this report these have
not been received.)
There were monthly recaps, prepared by the Treasurer, of deposits and checks
issued for a few of the audit months.
The flow of money in this organization does not lend itself to any internal
controls.
The treasurer needs some guidance in maintaining the records of the
organization.
At the second meeting:
Dora had taken all documents and organized them as directed; this allowed the
audit to be performed more accurately and in a more expeditious manner.
All Bank Statements, Check books, Cash Receipts and reimbursement receipts
were presented, and testing showed that the Treasurer had accurately
represented the cash activity over the audit period. Deposits were verified
against receipts for both Literature and Treasury activity and were found to be
accurate.
During the audit examination the Treasurer was given advice on how to maintain
the Treasury records to make use of controls suggested below.
Recommendations of this committee are as follows:
Cash Receipts should be issued for ALL monies received and these receipts
should be consecutively issued from a numbered Cash Receipts book.
To ensure that this is accomplished without fail, it is suggested that a Cash
Receipts book be purchased when the current book is started.
That a cash receipt be presented to the Literature Chair when money is turned
into the Treasurer.
That a receipt be issued for ALL monies received. This includes funds being
repaid from the person who embezzled money, and money repaid by sub
committees.
That all reimbursements should be paid by check and that the receipt being
reimbursed should be attached to the check copy in the checkbook.
Receipts should be individually signed by the responsible chair for
reimbursement.
This committee has discussed the advisability of maintaining a Petty Cash
account, and has determined that it would be best to reimburse disbursements
by check, in the event that a person is unable to cash a check then it may be
cashed out of the money on hand and deposited to the bank account just like any
other check.
That a calculator tape be run of the current day's receipts and attached to the
Cash Receipt book, this is advisable for both Literature and Treasury receipts.
Monies should be deposited the day after receipt and that deposit should be
verified by someone other than a signer on the account. Deposits should be
recorded in the check book, breaking down their source, ie: Repayments,
Donations, Literature Sales.
Bank reconciliations should be completed/approved by someone other than a
signer on the account or a person responsible for making deposits on the
account. The reconciliation ties the check book to the Bank Statement for the
month, listing outstanding checks. As the Bank no longer sends copies of
cancelled checks, it is advisable to continue using a check book that has copies.
These records should be maintained for a period of 7 years.
A copy of the invoice for the Literature order should be turned into the Treasurer
prior to the beginning of the monthly Area meeting.
Note, this is not an issue presently but being stated as a necessary control,
blank checks should NEVER be signed by any signer.
Signers on the bank account should be reviewed whenever there is a change of
chairpersons that are listed as signers or at least on a yearly basis.
Overall, this audit of the Area books showed no misrepresentations and although
initially unorganized, the Treasurer was more than willing to organize the data as
requested, additionally it is the opinion of this audit committee that the Treasurer has
done a commendable job.
We thank you for the opportunity to work on this audit.
Liz S,
Audit Committee
«
II
.
'
"
February 9, 2014
Hello Area Service,
I missed area last month, so I am providing a report for both meeting. In December, we
conducted a budget committee meeting all of the sub-committees were in attendance except H &
1. I notified H & I chairperson, Justin, to submit a copy of his budget and to get in contact with
me. He did not attempt to get in contact with me. The results of this meeting were the
subcommittees need to adjust their financial record to accommodate for the inclusion of the
printer. Also, The GAR requested that the audit be conduct, and for this to be completed before
next which was January 12th, 2014. The GAR from NEW BEGINNINGS, and Carlton J (a
member) home group provided to me a name and volunteers step down to get the audit
completed. I talked with all of those people, and the audit began on January 8, 2014. The audit
was not completed at that time and it was completed in the month of February (The assistant
treasurer has the completed report to provide to this body). Also during the month of December
there was a change of Chairperson with the Special Events Subcommittee. There was a meeting
conduct with the Acting Chairperson, subcommittee members, and myself to neutralize any
issues that may have been with the sub-committee members. On January 12,2014, I received a
telephone call be a member; notifying me that a newcomer with hours clean attempted to go to
HOPE IGNITED MEETING, but it was closed. She also called the 1800 number and did not
receive an answer. I called the number myself and left a message for the Chairperson to rectify
the issue.
For this month, I was not notify of any information that pertains to any subcommittee. However,
I did attend the completion of the audit. As notified above, the newly elected treasurer will be
providing a report, In addition, I have met with Beverly, who has made December's payment in
addition to February's payment as verbally reported in November's meetings she stated that she
was not going to have a payment for December or January. I recognized that the budget
committee meeting was off track, so the next budget committee meeting with be in the month of
March. I have also asked the audit person if she will be available to conduct an audit for TACT
subcommittee. However, I believe it would be appropriate to have the audit conducted after the
convention, so the newly elected representatives will have a fresh start.
n roving Service,
ma ~'~J
February 9, 2014
Treasurer's ReportI apologize for missing the couple of months due to illness and moving. Thank you for- your patience and
toterance, .and also for allowing me to do this job.
The opening balance was $4,459.56. The total income was $2,264.20. The total expenses for the month
of .nuary 2014 were $691-.08. Ending with a new balance of $6,032.68. After Prudent Reserve of
$4,000;1)0, ending balance of $2,032.68.
ILS,
Dora Hooper
NOTES
Opening Balance
$ 4,459.56
14-Fe
b
Income:
Home Group Donations
Literature Sales
Sub-Committee Donations
Reimbursements
Other
Total Income:
Expenses:
Rent (UNMC)
$ 2,264.20
$ 2,264.20
$
$
(150.00)
Check Number
1244
(171.70)
1243
$
$
(133.75)
bank error
(145.00)
return ch charge & itet
$
$
(31.75)
Auto Bank Withdrawal
(58.88)
Auto Bank Withdrawal
Total Expenses:
$
(691.08)
Total:
$ 6,032.68
TASCNA Printing
Printing supplies
Free State
Post Master
Chair
Vice Chair
Treasurer
Others
Secretary
Policy
RCM
VRCC
Public Relations
Literature
Special Events
H&I
CARNA Donations
WEBMASTER
Super Media
Phone Line
Transfer to New Account
Predent Reserve:
$ (4,000.00)
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