Presented by Cherrieann D. Diaz Grand Auditor

1. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. Presented byCherrieann D. Diaz Grand Auditor

2. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Audit Committee • Requires Three Chapter Members • Appointed Annually by the Worthy Matron • Beneficial if one member is retained from prior year for continuity

3. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Audit Committee Shall • Audits all books and records of Treasurer • Audit all books and records of Secretary • Audit all fund raising committees handling chapter funds

4. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Audit Committee Shall • Report findings and make applicable recommendations to the chapter • Analyze funds due to the chapter, such as; membership dues, ticket sales, and fines

5. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Audit Procedures • Must be in accordance with the Constitution and By-Laws of the Prince Hall Grand Chapter, Order of the Eastern Star, Rite of Adoption, Hawaii and it’s Jurisdiction, Inc. • Chapter books must be audited twice each year

6. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Audit Procedures • Audit should commence at the close of the May and November meetings • Report of the Audit Committee must be in writing • Report given in June and December (before elections of officers in the December meeting)

7. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Purpose of an Audit • To ensure the polices and guidelines are being met • Identify any discrepancies • Ensure proper corrective actions are taken in a timely manner

8. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Guidelines for Auditing • Have entrance Meeting with Secretary and Treasurer • Outline audit plans and procedures to be used during the audit • Provides officers an opportunity to explain any known discrepancies or new processing procedures

9. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Guidelines for Auditing • Review the auditing checklist to ensure all records have been turned over to Audit Committee • Note any discrepancies and or incomplete data prior to starting the audit

10. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Treasurer • Receipt book • Treasurer receives from Secretary all funds turned in to the chapter • Treasurer gives Secretary a receipt at the end of each meeting or when Secretary gives Treasurer any funds

11. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Treasurer • Treasurer receives monies from fund raising committees, if Secretary is not available • Treasurer gives Secretary a receipt to ensure timely deposit and safeguard of funds • Treasurer must have a separate receipt book if receiving monies from fund raising committees

12. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Deposit Slips • All funds must be deposited in the chapter account within 72 hours in designated bank • Duplicate copies of the deposit slips and or bank deposit receipts are given to Secretary

13. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Drafts/Warrants/Vouchers • Are supporting documents used to ensure a true and accurate account? • Shows all monies paid out on behalf of the chapter • Funds are paid out “only” upon a vote of the chapter and after a proper draft

14. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Drafts/Warrants/Vouchers • Warrant or Voucher have been properly signed by Secretary and countersigned by Worthy Matron • Warrant and Voucher should be maintained in numerical order

15. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Check Book • Cancelled checks should be attached to the check stubs in check book or numerical order in a file case • If checks are not returned by bank; keep all bank statements on file with copies of checks • Bank statements are used to reconcile books/balances with bank statements

16. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Record Book/Computer Ledger/Journal • Postings should include a true and accurate account of all monies received • All monies paid out • All bank entries like interest or bank charges

17. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Record Computer Ledger/Journal • Records must include • Balance brought forward • Receipts • Deposits and interest • Disbursements • Payee, Date Drawn, Check Number, and amount • Credits back and returned checks

18. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Record Computer Ledger/Journal • Records must include • Ending balance • Bank reconciliation • Earmarked funds

19. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Bank Statements • Should be balanced with books immediately upon receipt • Statements should be maintained for historical purposes • Statements should be presented as part of audit records

20. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Income Tax Annual Electronic Notice • All chapters are required to file form 990-N • e-postcard on May 15th of each year • Treasurer maintains copy of the receipt which shows date Form 990-N filed with IRS

21. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Members ledger and binder with membership ledger sheets on each member • Roster with up to date listing of all members • Receipt Book written in duplicate. Original to member, copy kept in receipt book

22. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Treasurer’s receipts kept in folder or some type of file in date order • Draft/Warrant/Voucher • Document written for each disbursement upon a vote of the chapter

23. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Draft/Warrant/Voucher • Treasurer writes check and keeps original warrant • Secretary keeps stubs of the warrant or disbursement order

24. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Journal – Cash ledger book to list monthly activity • Receipts and disbursements • Items reflected on bank statements • Interest and bank charges • Earmarked funds

25. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Minute Book – a bound record book in which minutes are recorded for regular and special meetings • Reports – Election, Annual returns, Audit, Annual Membership, all reports with supporting documentation from committees handling funds

26. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Bonding – Documentation showing all fiscal officers are bonded in accordance with the Constitution and By-Laws of Prince Hall Grand Chapter, Order of the Eastern Star, Rite of Adoption, Hawaii and its Jurisdictions Inc. • Tax Exempt Status from IRS

27. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Records required from Secretary • Inventory List – Detail list of all items/paraphernalia belonging to the Chapter. • Exit Meeting – Worthy Matron, Secretary and Treasurer are given opportunity to respond prior to final report to chapter

28. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • Examples of Improprieties • Required signatures not on checks • Bank Statement not reconciled • Missing member ledger sheet • Bank deposit receipts maintained by Secretary and not Treasurer (both should get a copy) • Interest or bank charges not shown in Secretary report (Treasurer did not pass information on) • Returned checks not shown on Secretary records (Treasurer did not pass this information on)

29. PRINCE HALL GRAND CHAPTERORDER OF THE EASTERN STAR, RITE OF ADOPTIONHAWAII AND IT’S JURISDICTION INC. • Basic Audit Procedures for All Chapters • QUESTIONS