W A C O

Willow Area Community Organization

Report of the Audit Committee

November 7, 2006

1. AUTHORITY

In accordance with WACO bylaws [VI.2], the Chair requested a committee of three, Erin McLarnon, Mary Jo Arterburn and Shirley Wakeman to conduct an audit of WACO, the Trails committee and Willow 2020 for the fiscal year beginning April 1st 2005.

2. EXPERIENCE

The members of the Audit Committee have current and prior experience in the banking industry. 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 seven separate occasions and examined financial records including bank statements, tax returns, disbursements (check copies) and receipts of the Organization. In addition, the same records were also examined for the Trails Committee and Willow 2020. The Committee finds the books of the Willow Area Community Organization and its committees to be in GOOD ORDER with recommendations attached.

4. PREVIOUS AUDIT

In reviewing the previous audit the following items were completed.

4.1 Budget.

A budget was generated and approved at the September 6th WACO meeting.

4.2 Monthly Reporting.

Reporting has included SOME of the breakdown requested.

4.3 Record Keeping.

Has been kept in monthly folders with copies of checks used to pay invoices.

4.4 1099s.

Have been completed where necessary.

5. RECOMMENDATIONS

5.1 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.

5.1.1 Ways and Means Committee.

Should assist with keeping monthly transactions, balancing monthly statements, handling cash during special events and covering when the Treasurer is not available.

5.1.2 Cash Controls.

These need to be tightened. It is very important that all cash transactions be signed by the presenter and receiver, then backed up by a deposit slip and filed in a receipt folder.

5.1.3 Start-up Cash.

Should be obtained by a check. The person receiving the cash should sign a receipt and return invoices etc to verify expenditures.

5.1.4 Account Signatures.

Need to be current. Procedure should be set up so this is done by April 15th of each year.

5.1.5 Reporting.

Reconciliation report should be done monthly. Financial Report should show income as well as expenses.

5.1.6 Special Events.

A report should be generated the following month showing total income and expenses. This will assist in planning for the same event the following year.

5.1.7 Tax Reporting.

Should be completed by the required dates.

5.1.8 Expense Recording.

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

5.1.9 Quick Books Pro.

WACO should purchase this or a similar program to run on the office computer. This will make the data available to all, make entering transactions easier and reporting (including taxes) can be generated automatically. Current price $300.

5.2 Trails Committee and Willow 2020

5.2.1 Financial information.

Should be submitted at least every six months to WACO Treasurer. This data needs to be included in the WACO Tax Return.

5.2.2 Monthly statements.

Should be balanced.

5.2.3 Expense recording.

Keep a copy of all invoices sent to any resource for payment and match with deposit receipt. Keep in monthly folder.

5.2.4 Computer program.

Use if it is purchased by WACO and take monthly backups.

6. 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, 2006

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