W A C O

Willow Area Community Organization

Report of the Audit Committee

June 4, 2005

1. AUTHORITY

In accordance with WACO bylaws [VI.2], the Chair requested that the Vice Chair establish an Audit Committee at the board meeting held on April 18th, 2005.

2. EXPERIENCE

The members of the Audit Committee have current and prior experience in the banking industry and in the development of accounting and financial control systems. The committee is therefore valid in terms of the bylaws, which require at least one member to have a financial background.

No members of the Audit Committee are members of the Ways and Means Committee.

3. FINDINGS

The Audit Committee met on four separate occasions and examined financial records including bank statements, tax returns, disbursements (check copies) and receipts of the Organization, covering the last fiscal year. In addition, the same records were also examined for the Trails Committee.

3.1 WACO

The Committee finds the books of the Willow Area Community Organization to be in GOOD ORDER with nine recommendations.

3.2 Trails Committee

The Committee finds the books of the Willow Trails Community to be in GOOD ORDER with one recommendation.

4. RECOMMENDATIONS

The Audit Committee understands that book keeping and related activities are performed by community volunteers. The Committee’s recommendations will, if adopted, improve the quality of information returned to WACO, establish better cash controls, and make subsequent audits easier.

4.1 WACO

Some of the recommendations below are specific to WACO. Those related to record keeping and cash controls, however, should apply to any committee of WACO that maintains financial records.

4.1.1 Budget. It is recommended that the Treasurer provide an annual budget for WACO to assist in determining the status of the treasury against anticipated expenses.

For the current fiscal year, it is suggested that prior year actuals be used in determining an initial budget.

4.1.2 Financial Reporting. The monthly financial report presented to WACO should include month, year-to-date and budget figures.

4.1.3 Cash Controls. For each WACO sanctioned event that collects monies on behalf of WACO, one or more deposit slips should be completed and signed by both the depositor and the Treasurer or member of the Treasurer’s committee/staff.

It is strongly recommended that the Treasurer appoint a staff to assist with deposit collection and reconciliation for the duration of the Winter Carnival.

4.1.4 Record Keeping. Receipts, disbursement records, bank statements should be kept by account within fiscal year.

All such documents should be clearly dated.

4.1.5 Expense Recording. Any expense reported to WACO should require a covering form that is annotated with the check number and signed by the recipient.

4.1.6 Transfers. There should be no transfers between Gaming and Current accounts. Instead a check should be drawn and a subsequent deposit made in order to provide a suitable audit trail.

4.1.7 Record Copying. In no case should a check or similar document be copied in color. In all cases such copies should be clearly marked VOID.

4.1.8 1099′s. WACO is obligated to provide IRS form 1099 to any individual receiving cash or goods with a value in excess of $600 for the prior calendar year. Such forms must be completed by January 31st.

4.1.9 Account Signatories. WACO should advise MVFCU of current signatories to checks so that their records are accurate.

4.2 Trails Committee

While the Trails Committee submits original receipts when seeking reimbursement from grants, the Audit Committee recommends that the ``Expense Recording’‘ procedure above be followed.

It should be noted that, in preparing for this audit, the Trails Committee had already decided to adopt such a procedure.

5. SUBMITTED

In submitting this report, please note that the members of the Audit Committee are prepared to assist in the implementation of the recommendations above.

WACO Audit Committee, 2005


Ways and Means Committee
Vincent Veit, Treasurer, WACO
Phone:7970 Email: tres@waco-ak.org
Krista Grilliot • Ronnie Widner