Determine whether the Board and Membership provided adequate controls over the Company’s receipts and disbursements.
- Controls are inadequate over receipts and disbursements because the Treasurer, without adequate oversight, is the only one who receives, counts, deposits and reports cash receipts and prepares, signs, reports and maintains a manual ledger of checks. The Treasurer sends listings of the receipts and disbursements to the bookkeeper to record in the accounting records.
- We could not determine whether 75 purchases totaling $27,514 were approved by the Membership because of inadequate documentation.
- We could not determine whether 20 purchases totaling $3,245 were for proper Company purposes.
- Provide better oversight over cash receipts by implementing additional procedures such as requiring at least two people to count and certify the money collected at fundraising events.
- Document the bills approved by the Membership.
- Ensure disbursements for purchases are adequately supported and for proper Company expenses.
Company officials generally agreed with our recommendations and indicated they planned to initiate corrective action.