Determine whether Company officials ensured that financial activities were properly recorded and reported and that money was safeguarded.
- The bylaws provided limited guidance on financial responsibilities and the Board did not establish any supplemental financial policies or procedures.
- The Treasurer did not maintain adequate accounting records and prepare monthly bank reconciliations.
- Most claims were paid without Membership approval, as required by the bylaws and 47 claims totaling $34,437 were paid without proper supporting documentation.
- Company officials did not ensure that cash receipts were adequately documented. Of 125 deposits totaling $318,091 made during the audit period, 43 deposits totaling $16,023 were either supported by only a deposit receipt or had no supporting documentation.
- Amend the bylaws or adopt separate written financial policies and procedures to establish internal controls over key financial areas.
- Maintain complete and accurate accounting records.
- Ensure claims are audited before payment and have adequate supporting documentation.
- Ensure cash receipts are supported by adequate documentation.
Company officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.