Presentation Transcript

1. California CASA Board Meeting

   Audit Committee ReportOctober 2013
2. FY June 2013 Financial Statements and Audit Financial statement audit and report finalized by Ricciardi CPAs with a “clean” audit report. No issues, concerns or irregularities to report in respect of the June 30, 2013 financials. Ricciardi letter to BOD: No difficulties encountered in performing the Audit. Any identified misstatements were corrected by management. No disagreements around accounting policies, audit matters, etc. were encountered. Editor note: Great Job CALCASA Staff!
3. FY June 2013 Financial Statements and Audit (Cont’d) Ricciardi letter to Management: Although Ricciardi does not audit the effectiveness of internal controls, no material weaknesses were identified during the course of the audit. Observations: General Ledger review: Recommend general ledger review by a secondary person on a monthly/quarterly basis. Status: BOD Treasurer reviews monthly and Audit Committee member reviews quarterly, but no “evidence” of review (i.e. sign-off, email, etc.).
4. FY June 2013 Financial Statements and Audit (Cont’d) Ricciardi letter to Management: Observations (cont’d): Employee credit cards: Recommend a secondary review of all employee credit card charges. Status: CEO reviews and approves the employee credit card charges, but no secondary review by BOD member is in place.
5. FY June 2013 Financial Statements and Audit (Cont’d) Ricciardi letter to Management: Observations (cont’d): Preparation of financial statements: Recommend that CALCASA prepare its own financial statements and makes all necessary adjusting journal entries without assistance from Ricciardi CPAs. Status: The recommendation has not been implemented as it is the Board’s opinion that there is no cost/benefit in implementing. The Quickbooks financials prepared monthly by CALCASA’s bookkeeper are sufficient for reporting out to management and the Board.
6. FY June 2013 Tax Returns Currently in process. Expected date of completion is 10/31/2013.
7. Double Check Signing Policy Current policy: Checks greater than $500 require two signatures, one must be a BOD member signature. The $500 threshold creates extra work and slows the payment process.
8. Double Check Signing Policy (Cont’d) Stats - On average: 221 checks written per year 56 of the 221 are greater than $500 (roughly 25%) 40 of the 221 are greater than $2,000 (roughly 18%) 9 of the 221 are greater than $5,000 (roughly 4%) Of the 40 over $2,000, 19 checks are rent to Preservation Park and health insurance to California Choice.
9. Double Check Signing Policy (Cont’d) Recommended new policy: Require double signature for disbursements equal to or greater than $2,000, AND which are also “non-routine.”  “Non-routine” defined as anything other than 1) payroll, 2) health insurance and 3) head office rent. Expected outcome with new policy is only roughly 20 checks will require double signature. Remove requirement that one of the signatures must be a board member, and expand it to an “authorized” officer. Executive Committee has the authority to “authorize” an officer in this capacity.
10. Other Considerations Consider controls around other types of disbursements (i.e. online bill pay)? Reaction: CALCASA does not currently engage in a lot of online payments. Considering setting up online bill pay for California Choice, Preservation Park and VISA.
11. The End.