APPROVALS:
Approved By: John Koellisch
Date:
Latest Revision
Approved By:
Date
Owner: Treasurer
Revision Level: Original
Release
Revision Date: 06/04/03
1. SCOPE
1.1 This procedure is applicable to the ASQ
2. PROCEDURES
2.1 Monthly Reconciliation
2.1.1 All Section bank accounts
are reconciled on a monthly basis by the Section Treasurer. Once reconciled to his/her satisfaction, the
Treasurer provides a copy of the financial database and the bank statement to a
designated volunteer to verify the reconciliation (this may require duplicate
software). Once the Treasurer and
Reconciler are both satisfied with the reconciliation, the Treasurer will
forward the reconciliation report to the Section Chair.
2.2 Annual Audit
2.2.1
A Section
Auditing Committee shall be appointed from the Regular Members of the Society
in good standing, and its membership should be rotated. It is not good auditing
practice for Officers or Committee Chairs whose accounts are being audited to
serve on the Section Auditing Committee. If any conflicts should arise, the
individual should resign from the Auditing Committee and the Section Chair
shall appoint an eligible replacement.
2.2.2
Generally,
the Auditing Committee should consist of between three and five members.
2.2.3
For the annual audit, the Auditing Committee
Chair shall request from the Section Treasurer the appropriate financial
records. These are likely to include:
2.2.3.1 Monthly bank statements and canceled checks
(including the final bank statement for the end of the previous year).
2.2.3.2 Checkbook record
2.2.3.3 Chart of Accounts
2.2.3.4 Payment requests, invoices, and bills
2.2.3.5 The Annual Report.
2.2.4
The Section
Auditing Committee should reconcile these records as follows:
2.2.4.1 Reconcile gross deposits and gross withdrawals
as well as the ending balances.
2.2.4.2 Account for the numerical sequence of all
checks.
2.2.4.3 Compare the deposits per the bank, per the
Section Treasurer's books and the transmittal letters.
2.2.4.4 Determine that each canceled check is in
agreement with the cash disbursements records with respect to: check number,
date, payee, and amount. Review endorsements on check, especially second
endorsements. Review all checks made out to "Cash".
2.2.4.5 Match the canceled checks with the invoices
and trace to the Treasurer's accounting records. When there are 50 or more
transactions annually, this may be done on a sample basis.
2.2.4.6 Examine the invoices/reimbursement requests
for proper approvals (Committee or Section Chair).
2.2.4.7 For year-beginning and year-ending
reconciling items (outstanding checks and deposits in transit), obtain the
supporting invoices or transmittal letters, and trace into Section Treasurer's
records. Inspect the invoices for proper approval.
2.2.4.8
Check agreement between beginning-of-year ledger
balances with prior year's closing balances and financial statements.
2.2.5
Members of
the Auditing Committee shall physically verify any fixed asset additions during
the year (i.e., computers, fax machines, etc.).
2.2.6
Following its reconciliation of the Treasurer's
records and verification of the financial statements, the Section Auditing
Committee Chair and Section Chair will sign the Annual Report indicating
completion of a successful audit.
2.3
Financial
Records Retention & Security
2.3.1
The financial
records retention period shall be per the IRS requirements or 7years minimum
and available for the audit committee upon request.
2.3.2
Storage of
financial documents shall be in cardboard file boxes or metal bins, i.e.;
safety deposit box, and available for audit committee review upon request.
2.3.3
Expenditure
for safety deposit boxes shall be voted upon by the executive board member
majority and reflected in the monthly meeting minutes.
2.3.4
All financial
documents beyond the required holding period shall be shredded by the audit
committee and verified by the Treasurer at the annual audit process.